COVER RATIONALE
The cover design conveys the message of
Agrobank’s key intent in augmenting the agriculture sector. It aims to portray the bank’s
Z[HUJL PU VɈLYPUN H OHUK [V NYV^ I\ZPULZZLZ
HUK U\Y[\YL KL]LSVWTLU[ ^P[OPU [OL ZLJ[VY PU
^OH[L]LY^H`P[KLLTZÄ[
Agrobank is committed to be a strategic partner
[V Z[YLUN[OLU [OL NYV^[O VM [OL HNYPJ\S[\YL sector in the country. Core Values / Our Goals
Professionalism TLHT^VYR Integrity Timeliness Core Values Core
Positive Attitude Respect Open Communication Our Goals
2 Agrobank Annual Report 2013 Contents
WHO WE ARE OUR Agrobank’s Inception 6 ACHIEVEMENTS Vision, Mission and Objectives 7 Organisation Structure 8 AND EVENTS Corporate Activities 2013 64 AT A GLANCE (^HYKZHUK9LJVNUP[PVU 70 Financial Highlights 12 Five-Year Financial Summary 13 CORPORATE GOVERNANCE OUR Statement of Corporate Governance 74 Statement of Risk Management 76 PERSPECTIVE Statement of Internal Control 84 Statement of Shariah Governance 86 Chairman’s Statement 18 Statement of Compliance 88 President/CEO’s Statement 24 OUR OUR LEADERSHIP PERFORMANCE 2013 Audited Financial Statements 92 Board of Directors 32 +PYLJ[VYZ»7YVÄSLZ 34 Shariah Committee 40 :OHYPHO*VTTP[[LL»Z7YVÄSLZ 42 CORPORATE Management Committee 46 INFORMATION Corporate Information 258 MANDATED Corporate Status 261 ROLE Corporate Directory 262 Our Mandated Role 50 Financial Services Division 54 Agropreneur Development Programme 56 Entrepreneur Success Stories 57
Agrobank Annual Report 2013 3
WHO WE ARE “He has produced you from the earth and ƐĞƩůĞĚLJŽƵŝŶŝƚ͟
Surah Hud: 61 WHO WE ARE ŐƌŽďĂŶŬ͛Ɛ/ŶĐĞƉƟŽŶ
The establishment of Bank Pertanian Malaysia (BPM) in BPM was incorporated under the Companies Act 1965 1969 was in line with the government’s move to carry out and upon the passing of the Bank Pertanian Malaysia Bill irrigation projects to accommodate double cropping for VU +LJLTILY P[^HZ[OLUJVTTLYJPHSS` paddy planting in the states of Kedah and Perlis; known known as Agrobank. The Bank Pertanian Malaysia as the Muda Agricultural Development Authority (MADA) )LYOHK(J[^HZNHaL[[LKVU1HU\HY` area. With the establishment of BPM to provide credit assistance to farmers, two branches were opened; the Agrobank is a Government-owned Bank (GLC) under ÄYZ[PU(SVY:L[HY2LKHOPU(WYPS "HUKMVSSV^LKI` the purview of the Ministry of Finance Incorporated. 2V[H)OHY\PU2LSHU[HU)` )74LTLYNLKHZ[OL -VJ\ZPUNVU[OLHNYPJ\S[\YLZLJ[VY[OL)HUR»ZÄUHUJPUN largest credit services provider to the rural agriculture operations are driven by a policy set forth by the Ministry sector. of Agriculture and Agro-Based Industry (MOA). Agrobank [VKH` VWLYH[LZ [OYV\NO IYHUJOLZ [OYV\NOV\[ 4HSH`ZPHHUKLTWSV`ZV]LYLTWSV`LLZ
6 Agrobank Annual Report 2013 sŝƐŝŽŶ͕DŝƐƐŝŽŶĂŶĚKďũĞĐƟǀĞƐ
VISION dŽďĞĂůĞĂĚŝŶŐďĂŶŬ ǁŝƚŚĂĨŽĐƵƐŽŶ MISSION ĂŐƌŝĐƵůƚƵƌĞ͘ dŽƉƌŽǀŝĚĞŵĂƌŬĞƚĂŶĚĐůŝĞŶƚͲĚƌŝǀĞŶĮŶĂŶĐŝĂů ƐĞƌǀŝĐĞƐŝŶĂĮŶĂŶĐŝĂůůLJƐƵƐƚĂŝŶĂďůĞǁĂLJǁŝƚŚ ƐƉĞĐŝĮĐƚĂƌŐĞƚŐƌŽƵƉƐƐƵĐŚĂƐ͗ ͻ ŐƌŽƉƌĞŶĞƵƌƐ ͻ DŝĐƌŽ͕ƐŵĂůůĂŶĚŵĞĚŝƵŵĞŶƚƌĞƉƌĞŶĞƵƌƐ ͻ WƌŝǀĂƚĞŝŶĚŝǀŝĚƵĂůƐ
OBJECTIVES ͻ dŽƉƌŽŵŽƚĞDĂůĂLJƐŝĂ͛ƐƐŽƵŶĚ ͻ dŽŵŽďŝůŝƐĞƐĂǀŝŶŐƐǁŝƚŚƉĂƌƟĐƵůĂƌ ĂŐƌŝĐƵůƚƵƌĂůĚĞǀĞůŽƉŵĞŶƚ͖ ƌĞŐĂƌĚƚŽƚŚĞĂŐƌŝĐƵůƚƵƌĂůƐĞĐƚŽƌ ĂŶĚŝŶĨƵƌƚŚĞƌĂŶĐĞŽĨƚŚŝƐŽďũĞĐƚƚŽ ͻ dŽĐŽͲŽƌĚŝŶĂƚĞĂŶĚƐƵƉĞƌǀŝƐĞƚŚĞ ĂĐĐĞƉƚƐĂǀŝŶŐƐĂŶĚƟŵĞĚĞƉŽƐŝƚƐ͖ ŐƌĂŶƚŽĨĐƌĞĚŝƚĨƌŽŵƉƵďůŝĐĨƵŶĚƐ ĨŽƌĂŐƌŝĐƵůƚƵƌĂůƉƵƌƉŽƐĞƐďLJƚŚĞ ͻ dŽƵƉůŝŌƚŚĞǁĞůůͲďĞŝŶŐŽĨƚŚĞ ǀĂƌŝŽƵƐƉĞƌƐŽŶƐŽƌďŽĚŝĞƐŽĨ ĂŐƌŝĐƵůƚƵƌĂůĐŽŵŵƵŶŝƚLJ͖ĂŶĚ͕ ƉĞƌƐŽŶƐǁŚĞƚŚĞƌŝŶĐŽƌƉŽƌĂƚĞŽƌ ƵŶŝŶĐŽƌƉŽƌĂƚĞ͖ ͻ dŽĐĂƌƌLJŽŶƚŚĞŐĞŶĞƌĂůďƵƐŝŶĞƐƐŽĨ ĂŵŽĚĞƌŶĂŶĚƉƌŽŐƌĞƐƐŝǀĞĮŶĂŶĐŝĂů ͻ dŽƉƌŽǀŝĚĞĮŶĂŶĐŝŶŐ͕ĂĚǀĂŶĐĞƐ͕ ƐĞƌǀŝĐĞƐŝŶƐƟƚƵƟŽŶĐĂƚĞƌŝŶŐĨŽƌƚŚĞ ĂŶĚŽƚŚĞƌĐƌĞĚŝƚĨĂĐŝůŝƟĞƐĨŽƌƚŚĞ ƚŽƚĂůĮŶĂŶĐŝĂůŶĞĞĚƐŽĨŝƚƐĐƵƐƚŽŵĞƌƐ͘ ĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞĂŐƌŝĐƵůƚƵƌĞ ƐĞĐƚŽƌĂŶĚĂŐƌŝĐƵůƚƵƌĞƌĞůĂƚĞĚ ďƵƐŝŶĞƐƐ͖
Agrobank Annual Report 2013 7 KƌŐĂŶŝƐĂƟŽŶ^ƚƌƵĐƚƵƌĞ
Board of Directors
President / CEO
Operations Financial Finance Services Management DIVISION
Special Business Treasury Accounting Asset Planning & Management Performance Monitoring
Payment Information Management System Reporting & Business Management Information Banking Central Property & Logistics Change Corporate & Strategic Consumer Management Planning Banking Product Support & Business
DEPARTMENT Electronic Operations Process Banking Re-Engineering
Trade Credit Finance Administration
Product Network Research & Support Development
STRATEGIC BUSINESS DIVISION (SBD)
8 Agrobank Annual Report 2013 Company Shariah Internal Audit Compliance Secretary Committee
President / CEO’s Office
Human Credit Risk Resource Management Management
HR Strategy Credit Corporate Corporate Credit Risk Shariah & Services Approval Communications Services
Credit HR Capability Market Risk Supervision
Learning & Operational Human Capital Risk Development
Credit Industrial & Evaluation Employee & Review Relations
Economic & Industry Research Management
STRATEGIC SUPPORT DIVISION (SSD)
Agrobank Annual Report 2013 9
AT A GLANCE
͞ŶĚǁŚŽĞǀĞƌĨĞĂƌƐůůĂŚͲ ,ĞǁŝůůŵĂŬĞĨŽƌŚŝŵĂǁĂLJŽƵƚ͕ ĂŶĚǁŝůůƉƌŽǀŝĚĞĨŽƌŚŝŵĨƌŽŵ ǁŚĞƌĞŚĞĚŽĞƐŶŽƚĞdžƉĞĐƚ͘͟
Surah Al-Talaq: 2-3 AT A GLANCE Financial Highlights
2013 2012 9LZ[H[LK
PROFITABILITY (RM million)
Operating revenue 889.1 1,057.5 6WLYH[PUNWYVÄ[ 338.3 410.0 7YVÄ[ILMVYL[H_HUKaHRH[ 319.3 355.4
KEY STATEMENT OF FINANCIAL POSITION ITEMS (RM million)
Total assets 11,138.7 11,461.4 3VHUZÄUHUJPUNHUKHK]HUJLZNYVZZ 6,393.3 6,493.1 Total liabilities 8,789.3 9,136.1 Deposits from customers 6,594.6 6,863.2 :OHYLOVSKLYZ»LX\P[` 2,349.4 2,325.3
FINANCIAL RATIO (%) 7YVÄ[HIPSP[`9H[PVZ 9L[\YUVULX\P[`ILMVYL[H_ 13.6 15.3 9L[\YUVUH]LYHNLHZZL[ZILMVYL[H_ 2.9 3.1
*HWP[HS(KLX\HJ`9H[PVZ Before deducting proposed dividends Core capital ratio 28.2 26.3 Risk-weighted capital ratio 34.0 31.9
(ZZL[8\HSP[`9H[PV .YVZZPTWHPYLKÄUHUJPUNYH[PV 9.9 12.4
12 Agrobank Annual Report 2013 &ŝǀĞͲzĞĂƌ&ŝŶĂŶĐŝĂů^ƵŵŵĂƌLJ @LHYLUKLK+LJLTILY
20132012 2011 2010 2009 9LZ[H[LK 9LZ[H[LK
PROFITABILITY (RM million) 6WLYH[PUNWYVÄ[ 338.3 410.0 305.3 449.4 355.1 7YVÄ[ILMVYL[H_HUKaHRH[ 319.3 355.4 376.6 376.8 182.0
KEY STATEMENT OF FINANCIAL POSITION ITEMS (RM million) Total assets 11,138.7 11,461.4 12,111.1 10,570.4 9,077.5 3VHUZÄUHUJPUNHUKHK]HUJLZNYVZZ 6,393.3 6,493.1 6,166.4 5,568.1 5,707.4 Total liabilities 8,789.3 9,136.1 9,943.0 8,683.2 7,753.8 Deposits from customers 6,594.6 6,863.2 7,546.5 6,452.8 5,967.4 Paid-up capital 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 :OHYLOVSKLYZ»LX\P[` 2,349.4 2,325.3 2,168.1 1,887.3 1,323.7 Commitments and contingencies 660.3 859.0 418.2 395.5 25.9
FINANCIAL RATIO (%) 7YVÄ[HIPSP[`9H[PVZ 9L[\YUVULX\P[`ILMVYL[H_ 13.6 15.3 17.4 20.0 12.6 9L[\YUVUH]LYHNLHZZL[ZILMVYL[H_ 2.9 3.1 3.1 3.6 2.0 Cost to income ratio 50.0 45.4 44.1 38.2 43.2
(ZZL[8\HSP[`9H[PV Financing to deposit ratio 79.2 76.5 63.2 68.7 77.7 .YVZZPTWHPYLKÄUHUJPUNYH[PV 9.9 12.4 13.8 22.1 11.9 Financing loss coverage 85.3 77.5 78.3 62.0 63.4
*HWP[HS(KLX\HJ`9H[PVZ Before deducting proposed dividends Core capital ratio 28.2 26.3 21.9 17.8 17.9 Risk-weighted capital ratio 34.0 31.9 28.2 20.0 21.8
Capital base (RM million) 2,608.4 2,432.8 2,237.1 1,518.5 1,607.3 Tier 1 capital (RM million) 2,163.2 2,003.5 1,738.0 1,347.1 1,323.7 Tier 2 capital (RM million) 445.2 429.3 499.1 171.4 283.6
PRODUCTIVITY RATIOS No. of employees 3,488 3,488 3,181 2,954 3,026 .YVZZÄUHUJPUNWLYLTWSV`LL94TPSSPVU 1.8 1.9 1.9 1.9 1.9 Deposits per employee (RM million) 1.9 2.0 2.4 2.2 2.0 7YVÄ[ILMVYL[H_WLYLTWSV`LL94TPSSPVU 0.1 0.1 0.1 0.1 0.1
Agrobank Annual Report 2013 13 &ŝǀĞͲzĞĂƌ&ŝŶĂŶĐŝĂů^ƵŵŵĂƌLJ @LHYLUKLK+LJLTILY
3VHUZ-PUHUJPUNHUK(K]HUJLZ94TPSSPVU 7YVÄ[)LMVYL;H_HUKAHRH[94TPSSPVU
6,493.1 376.8 6,166.4 376.6 355.4 319.3 5,568.1
182.0
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
:OHYLOVSKLYZ»,X\P[`94TPSSPVU 9L[\YUVU(]LYHNL(ZZL[Z
2,325.3 2,349.4 3.6 2,168.1 3.1 3.1 1,887.3 2.9
1,323.7 2.0
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
9PZR>LPNO[LK*HWP[HS9H[PV 9L[\YUVM,X\P[`
20.0 31.9 17.4 28.2 15.3 13.6 21.8 12.6 20.0
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
187 1.99 )YHUJOLZ (NYVIHURLYZ 4PSSPVUJ\Z[VTLYZ UH[PVU^PKL UH[PVU^PKL UH[PVU^PKL
14 Agrobank Annual Report 2013
6<97,9:7,*;0=, ͞ŽŶǀĞLJ;ŬŶŽǁůĞĚŐĞͿĨƌŽŵŵĞ ĞǀĞŶŝĨŝƚŝƐŽŶĞƐĞŶƚĞŶĐĞ͟
Sahih Bukhari OUR PERSPECTIVE ŚĂŝƌŵĂŶ͛Ɛ^ƚĂƚĞŵĞŶƚ
18 Agrobank Annual Report 2013 ͞&ŝŶĂŶĐŝŶŐĂƉƉƌŽǀĂůƐĂŵŽƵŶƚĞĚ 6U ILOHSM VM [OL )VHYK VM +PYLJ[VYZ P[ NP]LZ to RM2.98 billion in 2013, TL NYLH[ WSLHZ\YL [V WYLZLU[ [V `V\ [OL (UU\HS 9LWVY[MVY(NYVIHURMVY[OLÄUHUJPHS`LHYLUKPUN ƌĞŇĞĐƟŶŐŝŵƉƌŽǀĞĚĮŶĂŶĐŝŶŐ +LJLTILY ĨƌŽŵƚŚĞďƵƐŝŶĞƐƐďĂŶŬŝŶŐ ƐĞŐŵĞŶƚǁŝƚŚŐƌĞĂƚĞƌĞŵƉŚĂƐŝƐ 2013 ECONOMIC & BANKING SECTOR LANDSCAPE ŽŶƚŚĞŵĂŶĚĂƚĞĚƐĞŐŵĞŶƚ͘͟
;OLNSVIHSLJVUVT`PU^HZLZ[PTH[LK[VL_WHUK TLHZ\YLZPU[YVK\JLKI`)54PU1\S`[VYLPUMVYJL H[HTVKLZ[WHJLVM HTPK^LHRLYNYV^[OPU[OL responsible lending. Industry NPL ratio declined to advanced economies. The weak growth weighed H[`LHYLUK OLH]PS` VU NSVIHS KLTHUK O\Y[PUN L_[LYUHS KLTHUK MVY SVJHS L_WVY[Z .YV^[O PU LTLYNPUN LJVUVTPLZ ^HZ 6\[SVVRHUK4V]PUN-VY^HYK HSZVHќLJ[LKI`WVSPJ`TLHZ\YLZPU[YVK\JLK[VTHUHNL domestic vulnerabilities. .YV^[OPUPZL_WLJ[LK[VILTVKLZ[^P[O\UL]LU economic recovery in advanced economies. There is ;OL 4HSH`ZPHU LJVUVT` L_WHUKLK I` PU Z[PSS OPNO \UJLY[HPU[PLZ PU [OL NSVIHS ÄUHUJPHS THYRL[Z ! KYP]LU I` KVTLZ[PJ KLTHUK +LZWP[L HUK]VSH[PSLJHWP[HSÅV^Z/V^L]LYMHJLK^P[OL_[LYUHS ^LHRLYL_[LYUHSLU]PYVUTLU[PU[OLÄYZ[OHSMVM[OL`LHY JOHSSLUNLZ [OL 4HSH`ZPHU LJVUVT` PZ L_WLJ[LK [V domestic demand remained resilient throughout the year YLTHPUVUHZ[LHK`NYV^[OWH[OPUHUKPZWYVQLJ[LK led by robust private sector activity. The moderate growth [V L_WHUK IL[^LLU [V IL Z\WWVY[LK I` WLYMVYTHUJL^HZH[[YPI\[LK[V[OLWVVYL_[LYUHSTHYRL[Z PTWYV]LK WLYMVYTHUJL PU [OL L_[LYUHS ZLJ[VY K\L [V WVVYL_WVY[ZZSV^LYNYV^[OPUYLNPVUHSLJVUVTPLZHUK recovery in advanced economies. lower prices of the country’s key commodities. +VTLZ[PJKLTHUKPZL_WLJ[LK[VYLTHPU[OLRL`KYP]LY ;OLHNYPJ\S[\YHSZLJ[VYNYV^[OH[ ! ^HZ of growth. Factors driving growth will be from private attributed mostly by higher CPO output due to better yield investment which is forecasted to register robust growth amid favourable weather conditions. Production of food driven by on-going implementation of mega projects JVTTVKP[PLZ¶SP]LZ[VJR]LNL[HISLZHUKÄZOLYPLZ¶^HZ PUMYHZ[Y\J[\YL HUK PTWYV]LTLU[ PU L_[LYUHS KLTHUK OPNOLYHZHYLZ\S[VMLќVY[Z[VPUJYLHZLMVVKZLJ\YP[`HZ^LSS /V\ZLOVSK ZWLUKPUN PZ L_WLJ[LK [V TVKLYH[L IHZLK HZLќVY[Z[VPTWYV]LHNYVMVVKHUKHX\HJ\S[\YLPUK\Z[YPLZ VUYPZPUNPUÅH[PVU^OPJOPZWYVQLJ[LK[VH]LYHNLIL[^LLU PU 0UÅH[PVU YH[L YLTHPULK TVKLZ[ H[ PU ! ^P[O YH[LZ TV]PUN \W^HYKZ [V^HYKZ `LHY ;OLYL PZ L_WLJ[H[PVU VM H WVZZPISL OPRL PU 679 VM end due to rising cost brought about by reduction in IHZPZWVPU[Z[V PU[OLZLJVUKOHSMVM^OPJO subsidies such as petrol and sugar. The OPR was kept may lead to higher lending cost. Key drivers to overall H[ PUIHZLKVUNSVIHSLJVUVTPJHUKÄUHUJPHS NYV^[OPZL_WLJ[LKMYVT[OLZLY]PJLZHUKTHU\MHJ[\YPUN ^LHRULZZLZHUK]VSH[PSP[`PUPU[LYUH[PVUHSÄUHUJPHSTHYRL[Z ZLJ[VY^P[ONYV^[OPU[OLHNYPJ\S[\YLZLJ[VYL_WLJ[LKH[ ;OL5H[PVUHS(NYVMVVK7VSPJ`+HZHY Financing continued to support domestic economic Agromakanan Negara) and National Commodities HJ[P]P[PLZ^P[OÄUHUJPUNILPUNZ\Z[HPULK[OYV\NOWYP]H[L 7VSPJ` +HZHY 2VTVKP[P 5LNHYH ,JVUVTPJ consumption and investment activity. Financing growth Transformation Programme’s (ETP’s) National Key MVYI\ZPULZZLZ^HZH[ ! K\LSHYNLS` Economic Areas (NKEAs) and EPPs (Entry Point Projects) from securities and residential property. Financing growth ^PSS WYV]PKL VWWVY[\UP[PLZ MVY ÄUHUJPUN VM HNYPJ\S[\YL MVYWYPTHY`HNYPJ\S[\YL^HZH[ ! K\L projects throughout the value chain. primarily to oil palm sector. However, the growth rate of V\[Z[HUKPUNÄUHUJPUNMVYWLYZVUHSÄUHUJLZTVKLYH[LK * Source: BNM 2013 Annual Report [V PU! HZHYLZ\S[VMWYLLTW[P]L Agrobank Annual Report 2013 19 ;OL`LHY^HZPUKLLKJOHSSLUNPUNMVY(NYVIHURPU [LYTZ VM IHSHUJPUN YPZRZ HUK WYV]PZPVU VM ÄUHUJPUN [V [HYNL[NYV\WZHTPKJVTWL[P[PVUMYVTKVTLZ[PJÄUHUJPHS institutions. More emphasis was placed on implementing rigorous credit evaluation standards during the year and on strengthening credit processes and procedures in an LќVY[[VPTWYV]LÄUHUJPUNX\HSP[`HUKZ\Z[HPUHIPSP[`
Amid the challenges, Agrobank was able to register a net WYVÄ[ILMVYL[H_HUKaHRH[VM94 TPSSPVUMVY[OL `LHY -PUHUJPUN HWWYV]HSZ HTV\U[LK [V 94 IPSSPVU PU YLÅLJ[PUN PTWYV]LK ÄUHUJPUN MYVT [OL business banking segment with greater emphasis on [OL THUKH[LK ZLNTLU[ 0TWYV]LTLU[ PU SVHU X\HSP[` ^HZYLÅLJ[LKPU[OLSV^LYUL[ÄUHUJPUNPTWHPYTLU[YH[PV MYVT PU [V PU :OHYLOVSKLY»Z M\UKHTV\U[LK[V94 TPSSPVUYLNPZ[LYPUNH PERFORMANCE increase over the previous year.
:PUJL P[Z PUJLW[PVU PU HUK JVYWVYH[PZH[PVU In line with the development of the agriculture sector L_LYJPZLPU(WYPS (NYVIHUROHZYLTHPULKMVJ\ZLK and the National Agrofood Policy (NAP) which is in carrying out its developmental role in serving the WYVQLJ[LK [V NYV^ H[ HU H]LYHNL YH[L VM HUK HNYPJ\S[\YLJVTT\UP[`[OYV\NO[OLWYV]PZPVUVMÄUHUJPUN YLZWLJ[P]LS` K\YPUN [OL 5(7 WLYPVK facilities whilst being sustainable. Towards this end and [OL )HUR ^HZ HISL [V M\Y[OLY L_WHUK P[Z THUKH[LK [OYV\NOV\[[OL`LHY[OL)HUROHZJVU[PU\LKP[Z YVSL[V PU]PHÄUHUJPUN[VWYPTHY`HNYPJ\S[\YL close relationship with its stakeholders, the Ministry of activities and activities throughout the agriculture value Agriculture and Agro-Based Industry (MOA), Ministry chain. Agrobank’s strength lies in its contribution to the of Finance and Bank Negara Malaysia in ensuring MVVK ZLJ[VY HJJV\U[PUN MVY VM [V[HS HNYPJ\S[\YL its objectives are met especially towards the rural ÄUHUJPUN WVY[MVSPV YLSH[P]L [V [OL IHURPUN Z`Z[LT PU agricultural community. In line with its objectives, and for ,TWOHZPZ^HZHSZVNP]LU[V[OLUL^NYV^[OHYLHZ NYLH[LYÄUHUJPHSPUJS\ZPVU[OL)HUR»ZWYLZLUJLPU under the agriculture NKEA/EPP programmes. ^HZM\Y[OLYZ[YLUN[OLULK[V [V\JOWVPU[Z^P[O[OL establishment of 5 new branches.
20 Agrobank Annual Report 2013 ;OLZP_RL`Z[YH[LNPJKYP]LYZÄUHUJPHSPUJS\ZPVUMVJ\ZVU In line with the Bank’s developmental role, advisory TPJYVZTHSSHUKTLKP\TLU[LYWYPZLZ:4,ZZ[YLUN[OLU services were provided to selected entrepreneurs under O\THUJHWP[HSPTWYV]LZ[YH[LNPJHSSPHUJLZJHWP[HSPZLVU the Agropreneur Development Program (ADP) involving [LJOUVSVNPJHSLUOHUJLTLU[UL^I\ZPULZZNYV^[OHYLHZ WHY[PJPWHU[Z[OYV\NOHZLYPLZVMÄM[LLU [YHPUPUN HUK0ZSHTPJ)HURPUN) developed under the Bank’s Five programmes conducted during the year. Towards this @LHY:[YH[LNPJ7SHU JVU[PU\LK[VWYV]PKL[OL end, the Bank will continue to work with the various framework in the pursuit of the Bank’s vision of being agriculture agencies in identifying the right target group. a leading bank with a focus on agriculture. One of the VIQLJ[P]LZ YHWPKS` ILPUN YLHSPZLK PZ [V IL H M\SSÅLKNLK Agrobank has also recognised the importance of 0ZSHTPJ )HUR I` (Z H[ `LHYLUK TVYL corporate social responsibility towards the rural [OHU VM[V[HSNYVZZÄUHUJPUNWVY[MVSPV^HZ:OHYPHO JVTT\UP[`HUK[OLTHYNPUHSPZLK=HYPV\ZPUP[PH[P]LZ^LYL compliant. Heightened awareness through training implemented during the year in the form of contributions, and information of Islamic culture was implemented donations, zakat and other social activities which have [OYV\NOV\[[OL`LHYPUWYLWHYH[PVUVMM\SSÅLKNLK0ZSHTPJ become an essential part of Agrobank’s role in fostering banking status. closer relationships with the targeted community.
;OL )HUR JVU[PU\LK L_WHUKPUN P[Z V\[YLHJO LZWLJPHSS` [V [OL Y\YHS HYLHZ ]PH L_WHUKPUN \[PSPZH[PVU VM P[Z ͞dŚĞĂŶŬǁĂƐĂďůĞƚŽĨƵƌƚŚĞƌ electronic banking platform through its Retail Internet ĞdžƉĂŶĚŝƚƐŵĂŶĚĂƚĞĚƌŽůĞƚŽ )HURPUN :LY]PJL (.965L[ WYVTV[PUN HќVYKHISL ϳϰйŝŶϮϬϭϯǀŝĂĮŶĂŶĐŝŶŐƚŽ savings, credit, remittance, insurance services and ƉƌŝŵĂƌLJĂŐƌŝĐƵůƚƵƌĞĂĐƟǀŝƟĞƐ TVIPSLIHURPUNHJ[P]P[PLZ:[YH[LNPJHSSPHUJLZ^P[O46( ĂŶĚĂĐƟǀŝƟĞƐƚŚƌŽƵŐŚŽƵƚƚŚĞ agencies were forged during the year with the signing ĂŐƌŝĐƵůƚƵƌĞǀĂůƵĞĐŚĂŝŶ͘͟ VM 4LTVYHUK\TZ VM Agrobank Annual Report 2013 21 Moving forward, Agrobank will remain resolute in its stakeholders in balancing its developmental role and achieving its vision of being the leading bank with a sustaining its growth momentum towards the country’s focus on agriculture, and roadmap towards being a full- ]PZPVUVMILPUNHM\SS`KL]LSVWLKUH[PVUI` ÅLKNLK0ZSHTPJ)HURI` ;OL)HUR^PSSJVU[PU\V\ZS` improve its products and services to meet the needs of I wish to thank my fellow Board Members for their discerning customers and introduce new ones to remain support, contribution and commitment in serving their competitive. The Bank will continue its transformation duties professionally and with dedication in the past L_LYJPZL MVY NYLH[LY LѝJPLUJ` [OYV\NO YLLUNPULLYPUN one year. Their commitment and guidance is invaluable its processes in support of MOA in agriculture related and much needed in the coming year to steer the Bank WVSPJPLZ 5(7 MVY NYLH[LY ZLSMZ\ѝJPLUJ` HUK MVVK towards achieving its goals. security. Last but not least, the Bank will remain close to 22 Agrobank Annual Report 2013 6UILOHSMVM[OL)VHYKVM+PYLJ[VYZ0VUJLHNHPUL_WYLZZ our heartfelt gratitude to the Ministry of Agriculture and Agro-Based Industry, Ministry of Finance, Bank Negara Malaysia, other related ministries and agencies, partners, customers and other stakeholders for their unceasing support and guidance. I also wish to thank [OL4HUHNLTLU[HUKZ[HќMVY[OLPYÄYTJVTTP[TLU[PU ensuring the Bank’s mandated role is achieved. We hope that the relationship among stakeholders continue to strengthen as only with the co-operation and support from all can we shoulder our responsibilities as the DFI mandated to develop the country’s agriculture sector. ;(5:90-(0A(/46/+;(/09 Chairman Agrobank Annual Report 2013 23 WƌĞƐŝĚĞŶƚͬ K͛Ɛ^ƚĂƚĞŵĞŶƚ 24 Agrobank Annual Report 2013 +LHY:OHYLOVSKLYZ ͞tĞŚĂǀĞŵĂŶĂŐĞĚ ¸>OH[YLNYLZZLZUL]LYWYVNYLZZLZ¹ to increase the Bank’s ¶ YLX\PYLK MVY [OL WYVNYLZZ VM [OL HNYPJ\S[\YL PUK\Z[Y` PU [OL `LHY ^OPJO PZ [V IL Z\WWVY[LK I` By staying true to our mandated role in assisting higher production of palm oil and rubber accompanied agropreneurs and the Government in achieving their by rising output from the food sector attributed to the objectives, Agrobank is very much committed and Government’s Entry Point Project (EPP) initiatives under driven by a policy set forth by the Ministry of Agriculture the National Key Economic Areas (NKEA). and Agro-Based Industry (MOA). (Z^LJVU[PU\L[OLWH[O[VVќLYÄUHUJPHSZ\WWVY[[V[OL I strongly believe that the Bank is on the right track of agricultural sector, Agrobank has participated in various being the leading bank with a focus on agriculture with programmes launched by Government agencies led by [OLTPZZPVU[VWYV]PKLHM\SSYHUNLVMÄUHUJPHSZLY]PJLZPU 46(PU(TVUNZ[V[OLYZ[OLYLHYL[OL.YLLU3HUL HTHYRL[HUKJSPLU[KYP]LUÄUHUJPHSS`Z\Z[HPUHISL^H`MVY Policy, a programme which is targeted to acknowledge agropreneurs, micro, small and medium entrepreneurs the contribution of competitive and innovative local and private individuals. We have managed to increase :4,Z\UKLY[OL[O4HSH`ZPH7SHU",77 -VVK7HYR [OL )HUR»Z THUKH[LK ÄUHUJPUN HJ[P]P[PLZ [V V]LY Incubator) programme with the objective of creating an I` L_WHUKPUN HUK YLKLÄUPUN V\Y THUKH[L [V PUJS\KL integrated facility for producing ready-to-eat packed upstream and downstream production. As a DFI, our MVVKI`ZTHSSHUKTLKP\TLU[LYWYPZL:4,ZHUK:RPT mandated role refers to activities relating to agriculture Masyarakat Perdagangan & Perindustrian Bumiputera production, processing and marketing throughout the 477)¶/<)^OLYLSV^JVZ[^VYRPUNJHWP[HSÄUHUJPUN value chain (upstream and downstream activities) as PZ[VWYV]PKLÄUHUJPUN[V[OL)\TPW\[LYHLU[YLWYLUL\YZ well as uplifting the general well being of the agricultural involved in the agricultural sector value chain. community targeting entrepreneurs comprising small and medium scale enterprises. ;OL )HUR»Z NYVZZ ÄUHUJPUN IHSHUJL ^HZ YLJVYKLK H[ 94 IPSSPVUJVU[YPI\[LKI`94 IPSSPVUVY ;OL `LHY ^HZ JOHSSLUNPUN MVY [OL )HUR HZ ^L JVTTLYJPHSJVYWVYH[L ÄUHUJPUN HUK 94 IPSSPVU VY ^P[ULZZLK H NYV^[O PU HNYPJ\S[\YHS ZLJ[VY .+7 MYVTJVUZ\TLYÄUHUJPUN;OLÄUHUJPUNMVY[OL MYVT [OL`LHYILMVYL;OLTPUPTHSNYV^[O^HZK\L THUKH[LK YVSL OHZ PUJYLHZLK MYVT 94 IPSSPVU VY [VMHJ[VYZZ\JOHZL_[YLTL^LH[OLYJVUKP[PVUZ^LHRLY MYVT[V[HSÄUHUJPUNPU-@[V94 IPSSPVUVY commodity prices and food crop diseases. Nevertheless, MYVT[V[HSÄUHUJPUNPU-@)HZLKVUÄUHUJPUN the agricultural sector GDP is projected to grow to by size, in terms of total number of accounts, the Bank Agrobank Annual Report 2013 25 Due to particular emphasis on credit evaluation ͞/ƐůĂŵŝĐĮŶĂŶĐŝŶŐ Z[HUKHYKZ[OLX\HSP[`VMÄUHUJPUNHZZL[ZOHZPTWYV]LK ĂĐƟǀŝƟĞƐƌĞŐŝƐƚĞƌĞĚƐƚƌŽŶŐ ^P[O[OLNYVZZPTWHPYLKÄUHUJPUNYH[PVZYLK\JPUN[V ƉĞƌĨŽƌŵĂŶĐĞǁŚĞƌĞďLJ HZH[+LJLTILY /ƐůĂŵŝĐĂŶŬŝŶŐƉƌŽĮƚ ďĞĨŽƌĞƚĂdžĂŶĚnjĂŬĂƚĐĂŵĞ ),*6405.(-<33-3,+.,+0:3(40*)(52--0) ŝŶĂƚZDϱϯ͘ϳŵŝůůŝŽŶ͘͟ In order to ensure a smooth transition towards being a M\SSÅLKNLK0ZSHTPJIHURI` [OL)HUROHZMVYTLK OHZYLJVYKLK VMÄUHUJPUNMVYZTHSSLU[YLWYLUL\YZ a dedicated team to ensure that conventional banking ^P[O [OL HTV\U[ VM ÄUHUJPUN ILSV^ 94 LHJO operations are converted into Islamic banking operations. 6\[ VM [V[HS ÄUHUJPUN IHSHUJL VM 94 IPSSPVU HZ H[ With this FFIB team, the purpose of streamlining the +LJLTILY JVUZ[P[\[LZ ÄUHUJPUN ZPaL implementation process was institutionalised so that any SLZZ [OHU 94 LHJO *VUJ\YYLU[S` [OL )HUR issues with respect to the conversion can be handled YLNPZ[LYLK HU VWLYH[PUN WYVÄ[ VM 94 TPSSPVU HUK diligently. WYVÄ[ILMVYL[H_HUKaHRH[VM94 TPSSPVU With this FFIB aspiration, the Bank acknowledges that In line with the Bank’s objective in moving towards full- :OHYPHO WYPUJPWSLZ HYL [OL MV\UKH[PVU MVY [OL WYHJ[PJL ÅLKNLK0ZSHTPJ)HURPUNI` [OL0ZSHTPJÄUHUJPUN VM 0ZSHTPJ ÄUHUJL [OYV\NO VIZLY]HUJL VM P[Z [LUL[Z activities registered strong performance whereby Islamic conditions and principles. In order to achieve this, the )HURPUNWYVÄ[ILMVYL[H_HUKaHRH[JHTLPUH[94 Bank has strengthened its governance process pursuant TPSSPVU .YVZZ 0ZSHTPJ ÄUHUJPUN WVY[MVSPV L_WHUKLK [V [V[OL:OHYPHO.V]LYUHUJL-YHTL^VYRPZZ\LKI`)HUR YLHJO94 IPSSPVUHZVM+LJLTILYZW\YYLK Negara Malaysia. Agrobank also has established its I`Z[YVUNNYV^[OPUI\ZPULZZHUKJVUZ\TLYÄUHUJPUN :OHYPHO JVTWSPHUJL HUK YLZLHYJO M\UJ[PVUZ ^OLYL P[ JVUZPZ[Z VM :OHYPHO 9PZR :OHYPHO 9L]PL^ :OHYPHO 9LZLHYJO HUK :OHYPHO (\KP[ VU [VW VM [OL HKKP[PVUHS M\UJ[PVUVM:OHYPHO;YHPUPUNHUK:LJYL[HYPH[ 26 Agrobank Annual Report 2013 (YL]PZLKJVKLVMH[[PYLOHZ[HRLULќLJ[MYVT1HU\HY` In the same year, the Early Care and Monitoring HZ ^L HYL JVTTP[[LK [V WVY[YH` HU 0ZSHTPJ +LWHY[TLU[,*4+^HZTLYNLKPU[V[OL:WLJPHS(ZZL[ environment within the Bank. We had also strengthened 4HUHNLTLU[ +LWHY[TLU[ :(4+ MVY IL[[LY JVU[YVS our parameters on training, organising the Bank’s activity HUK TVUP[VYPUN VM J\YYLU[ HUK KLSPUX\LU[ HJJV\U[Z HUKWYVNYHTTL[VTP[PNH[LHU`UVU:OHYPHOJVTWSPHU[ ;OPZKLWHY[TLU[^HZPUZ[Y\TLU[HSPUIYPUNPUNZPNUPÄJHU[ occurances. These moves would enable us to provide income for the year which contributed directly to the J\Z[VTLYZ^P[OHJVTWSL[L:OHYPHOHWWYVHJO^OLU[OL Bank’s bottom line. time comes. On the Electronic Banking front, within a year, the >/(;»:5,> AGRONet registered users have increased twofold to \ZLYZ ! \ZLYZ ZPUJL P[Z SH\UJO PU Product branding was one of the initiatives taken to ^P[O[V[HS[YHUZHJ[PVUZHZH[[OLLUKVM+LJLTILY provide to the growing demand for well suited products ]HS\LKH[94 TPSSPVU!94 TPSSPVU in distributions, retail, and other businesses that are associated with agriculture. During the year under review, *:9!A(2(;(5++65(;065: the Bank developed and introduced a suite of products UHTLS` 4HJOPULY` HUK ,X\PWTLU[ -PUHUJPUN 4(,-P )LPUNHYLZWVUZPISL+-0PZ]P[HS[VV\YL_PZ[LUJL[V^HYKZ MVY W\YJOHZL VM Ä_LK HZZL[Z PU [OL THU\MHJ[\YPUN HUK the nation, stakeholders, clients and communities production of agricultural products and also trade [OYV\NOV\[ [OL JV\U[Y` 6\Y *VYWVYH[L :VJPHS ÄUHUJPUNMHJPSP[PLZ 9LZWVUZPIPSP[` *:9 LќVY[Z HYL LTILKKLK PU V\Y JVYL values in the way we conduct our business, develop 6\Y[YHUZMVYTH[PVULќVY[ZHYLL_[LUKLK[VL]LY`HZWLJ[ products and services, and deliver our goals and VMV\YI\ZPULZZ/LUJLMVY[OPU1\S`^LPU[YVK\JLK commitments to the masses. Trade Financing products and services to the Bank’s ZWLJPÄJ[HYNL[NYV\WZUHTLS`HNYVWYLUL\YZZTHSSHUK (NYVIHUR OHZ Z\JJLZZM\SS` L_LJ\[LK U\TLYV\Z *:9 medium entrepreneurs and corporate customers. Bank HJ[P]P[PLZ PU ;OLZL PUJS\KL [OL ¸:H[\ /H[P ;P[PHU Guarantee-i, Trade Working Capital Financing-i, Letter )\KP¹JHTWHPNU[OH[^HZOLSKPU:HYH^HRPU:LW[LTILY of Credit-i and Murabahah Trust Receipt are among This campaign helped the management of Agrobank [OLÄUHUJPUNMHJPSP[PLZWYV]PKLKHUKHZH[+LJLTILY to engage with the communities through Hari Bertemu ^L THUHNLK [V ZLJ\YL H [V[HS HWWYV]HS VM 7LSHUNNHU]PZP[PUNMHTPSPLZ^OVZLOV\ZLZ^LYLHќLJ[LK 94TPSSPVU Agrobank Annual Report 2013 27 I`ÄYLHUKKVUH[PUN[VYLZWLJ[P]LTVZX\LZPU:HYH^HR orphanages whereby a total of 5 vehicles were donated *OHUULSPUNV]LY94 PUKVUH[PVUZ(NYVIHURHSZV to Pertubuhan Kebajikan dan Penjagaan Nur Hidayah, presented the Zakat Perniagaan to the Pusat Pungutan Yayasan ADDIN, and YAATIM. AHRH[:HYH^HRHTV\U[PUN[V94 PU[V[HS AWARD RECOGNITION >L OH]L HSZV ^VYRLK ^P[O ;OL :[HY UL^ZWHWLY by sponsoring the educational pull-out called The For the second consecutive year, Agrobank was once :[HY 5L^ZWHWLY PU ,K\JH[PVU ;OL :[HY5P, ^OPJO again honoured to be awarded the Brand Laureatte encourages primary school students to master the Award for Best Brand in Corporate Branding, Financial English language. :LY]PJLZ ¶ (NYPJ\S[\YL )HURPUN MVY [OL `LHY [V >LZ[YVUNS`ILSPL]L[OH[[OPZH^HYKNP]LUI`[OL Looking back at our track record in giving Zakat (ZPH 7HJPÄJ )YHUKZ -V\UKH[PVU (7)- WYV]LZ [OH[ JVU[YPI\[PVUZ[V[OLULLK`"^HZHUV[OLYZPNUPÄJHU[ (NYVIHUR»Z LќVY[Z PU JOHTWPVUPUN Y\YHS HNYPJ\S[\YHS year where we contributed RM1.83 million worth of sectors are recognised regionally and internationally. Zakat Perniagaan donations nationwide. At the same time, Agrobank also initiated vehicle donations to 28 Agrobank Annual Report 2013 GRATITUDE (MOA) and other regulatory and government bodies for their cooperation and support. Also, appreciation and ,U[LYPUN ^PSS IL HU L]LU TVYL PU[LYLZ[PUN `LHY thanks to our loyal customers for their trust in growing MVY [OL )HUR ^OLYL H ^PKL HYYH` VM :OHYPHO JVTWSPHU[ their businesses with us, to the Chairman and Board products and services will be launched to support members for placing their faith in me as President/CEO the needs of our clients in various segments of the of the Bank and not forgetting the Management team JVTT\UP[` HUK PUK\Z[Y`>L ZOHSS JVU[PU\L [V L_WHUK PUJS\KPUN HSS (NYVIHUR Z[Hќ MVY [OLPY KLKPJH[PVU our market presence and product portfolio in response and commitment. I believe in the capabilities of our to the needs of our customers. More programmes are employees in ensuring that the Bank is right on track to PUSPUL^P[OV\YLќVY[Z[VWYV]PKLÄUHUJPUN[V^HYKZ[OL achieving greater heights. transformation of the agriculture industry into a modern and dynamic sector. Wassalam. First and foremost, we would like to take this opportunity [VL_WYLZZV\YNYH[P[\KL[V[OLZ[HRLOVSKLYZPUJS\KPUN Ministry of Finance (MOF), Bank Negara Malaysia +(;6»>(546/+-(+A40>(56;/4(5 (BNM), Ministry of Agriculture and Agro-Based Industry 7YLZPKLU[*OPLM,_LJ\[P]L6ѝJLY Agrobank Annual Report 2013 29 6<93,(+,9:/07 KŶĞŽĨƚŚĞŐƌĞĂƚĞƐƚƉŝĞĐĞƐŽĨ ĂĚǀŝĐĞŐŝǀĞŶďLJƚŚĞWƌŽƉŚĞƚ ǁĂƐ͗͞dŚĞŵŽƐƚďĞůŽǀĞĚ ĂĐƟŽŶƐƚŽůůĂŚĂƌĞƚŚŽƐĞ ƉĞƌĨŽƌŵĞĚĐŽŶƐŝƐƚĞŶƚůLJ͕ ĞǀĞŶŝĨƚŚĞLJĂƌĞĨĞǁ͘͟ Sahih Bukhari OUR LEADERSHIP Board of Directors dŚĞŵĞŵďĞƌƐŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĨƌŽŵ ƚŚĞƉƌĞǀŝŽƵƐƚŽƚŚĞĐƵƌƌĞŶƚƌĞƉŽƌƚĂƌĞ͗ 32 Agrobank Annual Report 2013 &ƌŽŵ>ĞŌƚŽZŝŐŚƚ͗ ͻE',/,<z /ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͻ dh<Z͘^,ZE,:/EE'/ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌ ͻdK͛tEDK,&D/tEKd,DE WƌĞƐŝĚĞŶƚͬŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌͻ dE^Z/&/,DK,d,/Z/ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŚĂŝƌŵĂŶ ͻdh<^ Z/, DK,,^,/Dh>>,EŽŶͲ/ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͻ RASHIDAH MOHD SIES EŽŶͲ/ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌ ͻdh<:K,Z, Dd/ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌͻ D͘,/>D/dh<,:/D͘EKKZ/ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌ ͻdK͛^> ,h/E^//E/ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌ;ƉƉŽŝŶƚĞĚϯDĂLJϮϬϭϯͿ ͻd/EZh/EtE,E/&& /ŶĚĞƉĞŶĚĞŶƚEŽŶͲ džĞĐƵƟǀĞŝƌĞĐƚŽƌ;ZĞƐŝŐŶĞĚϮϴ&ĞďƌƵĂƌLJϮϬϭϯͿ Agrobank Annual Report 2013 33 ŝƌĞĐƚŽƌƐ͛WƌŽĮůĞƐ ;HU:YP -HPaHO 4VOK ;HOPY was appointed as an Independent 5VU,_LJ\[P]L*OHPYTHUVM(NYVIHURVU (\N\Z[:OLPZ also Chairman of the Nominating Committee and General Purpose Committee of Agrobank. :OL OVSKZ H 4HZ[LY»Z +LNYLL ,JVUVTPJ +L]LSVWTLU[ MYVT >PSSPHTZ*VSSLNL :OLILNHUOLYJHYLLYPU[OLJP]PSZLY]PJLHZHU(ZZPZ[HU[+PYLJ[VY at the Economic Planning Unit (EPU), Prime Minister’s Department PU :OL OLSK ZL]LYHS RL` WVZP[PVUZ Z\JO HZ [OL 7YPUJPWHS Assistant Director of Fisheries and Livestock Development, EPU HUK[OL+PZ[YPI\[PVU:LJ[PVU\U[PS :OL^HZSH[LYWYVTV[LKHZ [OL+PYLJ[VYVM[OL/\THU9LZV\YJLZ:LJ[PVUHUK[OL0UK\Z[Y`HUK *VTTLYJL:LJ[PVUPU[OL,7<7YPVY[VOLYYL[PYLTLU[MYVT[OLJP]PS ZLY]PJLPU+LJLTILY ZOL^HZ[OL:LJYL[HY`.LULYHSPU[OL Ministry of Women, Family and Community Development. ;(5:90-(0A(/46/+;(/09 :OL PZ J\YYLU[S` H TLTILY VM [OL )VHYKZ VM .VVK`LHY 4HSH`ZPH 0UKLWLUKLU[5VU,_LJ\[P]L )LYOHK.VVK`LHY4HYRL[PUN :HSLZ:KU)OKHUK-HP[O(JYLZ:KU *OHPYTHU Bhd. +H[\R :LYP *OL 4VOK /HZOPT (IK\SSHO was appointed as a 5VU0UKLWLUKLU[ 5VU,_LJ\[P]L +PYLJ[VY VM (NYVIHUR VU 4H` /L OVSKZ H 4HZ[LY»Z +LNYLL 7VSP[PJHS :JPLUJL MYVT +H[\R:LYP*OL4VOK/HZOPTILNHUOPZJHYLLYPUJP]PSZLY]PJLPU (TVUN[OLWVZP[PVUZOLOLSK^LYL:LUPVY7YP]H[L:LJYL[HY` [V [OL 4PUPZ[LY VM @V\[O HUK :WVY[Z HZ ^LSS HZ 4PUPZ[LY VM 9\YHS +L]LSVWTLU[" 7YPUJPWHS (ZZPZ[HU[ :LJYL[HY` PU [OL 7SHUUPUN HUK =HS\H[PVU+P]PZPVU":LJYL[HY`VM[OL)\ZPULZZ+L]LSVWTLU[+P]PZPVU in the Ministry of Entrepreneur and Cooperatives Development; HUK +LW\[` :LJYL[HY` .LULYHS PU [OL 4PUPZ[Y` VM (NYPJ\S[\YL HUK (NYVIHZLK0UK\Z[Y`/LPZJ\YYLU[S`[OL:LJYL[HY`.LULYHSPU[OL Ministry of Agriculture and Agro-based Industry. DATUK SERI CHE MOHD HASHIM ABDULLAH +H[\R:LYP*OL4VOK/HZOPTPZHSZVHTLTILYVM[OL)VHYKVM 5VU0UKLWLUKLU[5VU,_LJ\[P]L Trustees at Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN), +PYLJ[VY Board Member of the Fisheries Development Authority of Malaysia, Farmers’ Advisory Council, Farmers’ Organisation Authority (LPP) HUK4HSH`ZPHU*VVWLYH[P]L*VTTPZZPVU:24 34 Agrobank Annual Report 2013 +H[V» >HU 4VOK -HKaTP >HU 6[OTHU was appointed as [OL 7YLZPKLU[*OPLM ,_LJ\[P]L 6ѝJLY VM (NYVIHUR VU 1\S` /L HSZV JVUJ\YYLU[S` ZLY]LZ HZ [OL *OHPYTHU VM [OL Management Committee, Management Credit Committee, Asset Liability Committee, Management Information Technology and Transformation Committee, Management Risk Committee and Human Resource Management Committee. He holds a Bachelor Degree in Construction Economics from the Royal Melbourne Institute of Technology, Australia. He also attended the Advanced Management Program (AMP) at Wharton )\ZPULZZ:JOVVS Prior to joining Agrobank, he was the Director of Global Financial Banking to RHB Banking Group. He was also attached to Maybank Group for 22 years where he held several senior management positions including Country Head for Maybank’s branches in London, New York and Hong Kong. +(;6»>(546/+-(+A40 He is also a Board Member of the Farmers’ Organisation Authority WAN OTHMAN Malaysia (LPP). 7YLZPKLU[*OPLM,_LJ\[P]L6ɉJLY 9HZOPKHO 4VOK :PLZ was appointed as a Non-Independent 5VU,_LJ\[P]L+PYLJ[VYVM(NYVIHURVU 1\UL:OLPZHSZVH member of the Board Audit Committee, Board Credit Committee, and Remuneration Committee of Agrobank. :OLOVSKZH)HJOLSVY+LNYLL-PUHUJLPU)\ZPULZZ(KTPUPZ[YH[PVU MYVT 0KHOV :[H[L /H]PUN OHK L_[LUZP]L L_WLYPLUJL ^P[OPU [OL JP]PS ZLY]PJL OLY JHYLLYOHZWYVWLSSLKOLY[VOLPNO[ZVMZPNUPÄJHUJL9HZOPKHOOHZ ZLY]LK ^P[O [OL 4PUPZ[Y` VM -PUHUJL 0U]LZ[TLU[ :LJ[PVU PU [OL capacity of managing Government loans, and later was involved in the privatisation of various agencies and departments under the Government. Rashidah was also involved in the restructuring of Bank Pembangunan Dan Infrastruktur Malaysia Berhad as well as Bank Industri Malaysia Berhad. RASHIDAH MOHD SIES :OL J\YYLU[S` ZLY]LZ HZ 7YPUJPWHS (ZZPZ[HU[ :LJYL[HY` PU [OL 5VU0UKLWLUKLU[5VU,_LJ\[P]L Investment Division, Menteri Kewangan Diperbadankan (MKD) and +PYLJ[VY Privatisation Division, Ministry of Finance Malaysia. Agrobank Annual Report 2013 35 +H[\R+Y:HOHYHU/HQP(UHUNwas appointed as an Independent 5VU,_LJ\[P]L+PYLJ[VYVM(NYVIHURVU 1\UL /LPZHSZV Chairman of the Board Risk Management Committee and is a member of the Board Audit Committee, Board Credit Committee, Board Investment Committee, Nominating Committee and Board General Purpose Committee of Agrobank. /L VI[HPULK OPZ 7O+ >LLK :JPLUJL MYVT [OL He has held prominent positions locally and internationally PU PUZ[P[\[PVUZ Z\JO HZ! 4HSH`ZPHU (NYPJ\S[\YHS 9LZLHYJO HUK +L]LSVWTLU[ 0UZ[P[\[L 4(9+0 5H[PVUHS *V\UJPS MVY :JPLU[PÄJ 9LZLHYJO HUK +L]LSVWTLU[ 472:5 -VVK HUK (NYPJ\S[\YL 6YNHUPZH[PVUVM;OL +H[\R1VOHY*OL4H[was appointed as an Independent Non- ,_LJ\[P]L+PYLJ[VYVM(NYVIHURVU1\S`/LHSZVZLY]LZHZ the Chairman of the Board Credit Committee and Remuneration Committee of Agrobank. He is also a member of the Board Audit Committee, Board Risk Management Committee, Board Information Technology Committee, Board Investment Committee, and Nominating Committee. He holds a Bachelor Degree in Economics. +H[\R1VOHYOHZ]HZ[L_WLYPLUJLPU[OLIHURPUNPUK\Z[Y`ZWHUUPUN over 34 years and was a Board Member of Mayban Trustee Berhad, Maybank Islamic Berhad, Mayban Life Assurance Berhad, Maybank ;HRHM\S )LYOHK 4H`IHU -PUHUJL )LYOHK 4H`ÄU (ZLHTSLHZL )LYOHK(ZLHT*YLKP[:KU)OKHUK4H`IHU(SSPLK*YLKP[ 3LHZPUN )LYOHK +H[\R 1VOHY ^HZ [OL MVYTLY *OPLM 6WLYH[PUN 6ѝJLY VM 4H`IHUR)LYOHKWYPVY[VOPZYL[PYLTLU[PU1\UL +(;<216/(9*/,4(; 0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY Datuk Johar is currently a Board Representative of Amanah Raya Berhad, overseeing the management of the company. 36 Agrobank Annual Report 2013 4K /PSTP +H[\R /HQP 4K 5VVY was appointed as an 0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VYVU4HYJO He is the Chairman of the Board Audit Committee and Board Information Technology Committee. He is also a member of the Nominating Committee and Board Investment Committee. He is a Chartered Accountant of the Malaysian Institute of Accountants (MIA) and a Fellow of the Association of Chartered *LY[PÄLK(JJV\U[HU[Z(**( Md. Hilmi has held several positions in various public listed HUKWYP]H[LJVTWHUPLZ/PZ^VYRL_WLYPLUJLPUJS\KLZH\KP[PUN construction, wholesaling and retailing, property development, and privatisation of tolled highways, both locally and overseas. He is currently the corporate advisor of a construction and trading company in the Middle East and was also the Financial Coordinator to a construction consortium in Malaysia involved with the privatisation of a Highway Project in India. 4+/0340+(;<2/(10 MD. NOOR 0UKLWLUKLU[5VU,_LJ\[P]L +PYLJ[VY 5N *OPO 2H`L was appointed as an Independent Non- ,_LJ\[P]L+PYLJ[VYVM(NYVIHURVU -LIY\HY`/LPZHSZV Chairman of the Board Investment Committee and is member of the Board Credit Committee, Board General Purpose Committee, Board Information Technology Committee, Board Risk Management Committee and Remuneration Committee. He is a Chartered Accountant of the Malaysian Institute of Accountants (MIA) and a Fellow of the Association of Chartered *LY[PÄLK(JJV\U[HU[Z(**( Mr. Ng Chih Kaye began his career at Blinkhorn, Lyon & Golding, Chartered Accountants, London and later at KPMG, Kuala Lumpur. He then served Maybank for 25 years with his SHZ[ WVZP[PVU HZ ,_LJ\[P]L =PJL 7YLZPKLU[ HUK ^HZ H )VHYK Member of Mayban Allied Credit & Leasing Berhad. 4Y 5N *OPO 2H`L PZ HSZV HU 0UKLWLUKLU[ 5VU,_LJ\[P]L +PYLJ[VYVM*HWP[H4HSSZ4HSH`ZPH9,0;4HUHNLTLU[:KU)OK NG CHIH KAYE 0UKLWLUKLU[5VU,_LJ\[P]L+PYLJ[VY agrobankAgrobank 2013 Annual annual Report report 2013 00 37 +H[V» :HSLO\KKPU :HPKPU was appointed as an Independent 5VU,_LJ\[P]L+PYLJ[VYVM(NYVIHURVU4H`/LZLY]LK HZHTLTILYVM[OL)VHYK9PZR4HUHNLTLU[*VTTP[[LL\U[PS -LIY\HY` He holds a Degree in Law (Hons.) from University of Malaya, Kuala 3\TW\Y+H[V»:HSLO\KKPUOHZ]HZ[RUV^SLKNLHUKL_WLYPLUJLPU legal matters; both in Government and the private sector. +H[V»:HSLO\KKPUILNHUOPZJHYLLYPU HZ-LKLYHS*V\UZLS MVY [OL 4PUPZ[Y` VM +LMLUZL \U[PS /L PZ [OL 4HUHNPUN +PYLJ[VYVM4LZZYZ:HSLO\KKPU:HPKPU (ZZVJPH[LZHUKHSZVHJ[Z HZHU(K]VJH[LHUK:VSPJP[VYPUHYLHZVMJYPTPUHSJVYWVYH[LJP]PS SP[PNH[PVUJVU]L`HUJPUNHUK:OHYPHO +(;6»:(3,/<++05:(0+05 0UKLWLUKLU[5VU,_LJ\[P]L +PYLJ[VY 38 Agrobank Annual Report 2013 ^ŚĂƌŝĂŚŽŵŵŝƩĞĞ /ŶϮϬϭϯ͕ŐƌŽďĂŶŬĂĐĐĞƉƚĞĚƚŚĞĂƉƉŽŝŶƚŵĞŶƚŽĨƚǁŽŶĞǁ ŵĞŵďĞƌƐƚŽŝƚƐ^ŚĂƌŝĂŚŽŵŵŝƩĞĞ;^Ϳ͘dŚĞůŝƐƚŽĨŐƌŽďĂŶŬ͛Ɛ ^ŚĂƌŝĂŚŽŵŵŝƩĞĞDĞŵďĞƌƐƵŶƟůĞĐĞŵďĞƌϮϬϭϯŝƐĂƐĨŽůůŽǁƐ͗ 40 Agrobank Annual Report 2013 &ƌŽŵ>ĞŌƚŽZŝŐŚƚ͗ ͻZ͘DK,D^Z/<Z/ DĞŵďĞƌͻZDK,D &/ZKKh><,/ZŚĂŝƌŵĂŶ ͻWZK&DzZd/ ͻWZK&͘Z͘^/&h>,ZZK^>z DĞŵďĞƌ;ZĞƐŝŐŶĞĚϯϭDĂƌĐŚϮϬϭϯͿ ͻDK,<,/Z/D͘EKZ DĞŵďĞƌ;ZĞƐŝŐŶĞĚϯϭDĂƌĐŚϮϬϭϯͿ Agrobank Annual Report 2013 41 ^ŚĂƌŝĂŚŽŵŵŝƩĞĞ͛ƐWƌŽĮůĞƐ +Y4VOHTLK-HPYVVa(IK\S2OPY is a member of MIDF Islamic (ZZL[Z:OHYPHO*VTTP[[LL459)9L[HRHM\SHUK4H`IHUR0ZSHTPJ )LYOHK/L^HZHWWVPU[LK[V(NYVIHUR»Z:OHYPHO*VTTP[[LLVU (\N\Z[/LOVSKZH+LNYLLPU0ZSHTPJ9L]LHSLK2UV^SLKNLHUK /\THU:JPLUJLTHQVYPUNPU-PXOHUK +946/(4,+-(0966A ABDUL KHIR *OHPYTHU 7YVM4HK`H+Y([PR\SSHO/Q(IK\SSHO is Assistant Professor of 0ZSHTPJ:[\KPLZH[ PROF. MADYA DR. ATIKULLAH /1()+<33(/ 4LTILY 42 Agrobank Annual Report 2013 +Y4VOHTHK:HIYPAHRHYPH is Assistant Professor at International Islamic University Malaysia (IIUM). He obtained his Bachelor Degree :OHYPHOMYVT[OL /LHSZVZLY]LZHZH:OHYPHO)VHYKTLTILYPUHOVZ[VM)HURPUN Institutions and is actively involved in writing journals on matters YLSH[LK [V )HURPUN HUK 4\HTHSH[ TH[[LYZ +Y 4VOHTHK :HIYP AHRHYPHPZ:OHYPHO(K]PZVY[V.YLH[,HZ[LYU;HRHM\S:KU)OK40+- .YV\WHZ^LSSHZ[OL0TWVY[,_WVY[V\[Ä[MVY[OL)HURZVM4HSH`ZPH DR. MOHAMAD SABRI A(2(90( 4LTILY ;\HU/HQP0ZTHPS4HOH`\KPU^HZHWWVPU[LK:OHYPHO*VTTP[[LL TLTILY PU 1\UL /L ^HZ H ZLUPVY MLSSV^ HUK ZLY]LZ H[ Accounting Research Institute (ARI), University Technology MARA, :OHO (SHT HUK ZP[Z VU [OL )VHYK VM +PYLJ[VYZ MVY .VVK^H` Integrated Industries Berhad. Ismail Mahayudin commenced his career as a graduate teacher PULJVUVTPJZ[\KPLZPU:LRVSHO4LULUNHO+H[V»:YP(THY+P9HQH Muar, Johor. Following his interest in commerce, he moved on [VZLY]LH[)HUR)\TPW\[YH4HSH`ZPH)LYOHKHZHUVѝJLYH[[OL bank’s International Trade Department. He then served in Bank of Commerce as a manager; overseeing its billing activities. Ismail Mahayudin continued his career in various capacities at Bank Islam Malaysia Berhad. He sits on the Board of Directors for Takaful Malaysia and Bank Islam (L) LTD Labuan as well as Chairman for BIMB Foreign Currency Clearing Agency and Wakalah Nominees. ;<(5/(100:4(03 MAHAYUDIN 4LTILY Agrobank Annual Report 2013 43 +Y4\OHTTHK@HTPU0ZTHPSOHZZLY]LKHZ[OL*OPLM,_LJ\[P]L 6ѝJLYVM[OL-LKLYHS;LYYP[VY`0ZSHTPJ9LSPNPV\Z*V\UJPS\U[PS /LWVZZLZZLZHU\UKLYNYHK\H[LLK\JH[PVUPU:OHYPHO 3H^MYVT [OL DR. MUHAMMAD YAMIN ISMAIL 4LTILY /PZOHT\KKPU(I/HTPK^HZHWWVPU[LK:LJYL[HY`[V[OL:OHYPHO *VTTP[[LLPU6J[VILY/LJVTTLUJLKOPZJHYLLYPU[OLSLNHS WYVMLZZPVUHM[LYOLÄUPZOLKOPZZ[\K`PUIV[O*P]PS3H^HUK:OHYPHO 3H^MYVT0U[LYUH[PVUHS0ZSHTPJ He has since been actively involved in various disciplines in Banking litigation and has served in various establishments discharging his tasks in such a capacity; namely, Alliance Islamic Bank and Bank Muamalat. /PZOHT\KKPU(I/HTPKSLUKZOPZL_WLY[PZLHUKL_WLYPLUJLPUILPUN HJ[P]LS` PU]VS]LK PU :OHYPHO IHURPUN WYPUJPWSLZ HUK JVTWSPHUJL matters apart from product development, advisory and training. HISHAMUDDIN AB HAMID :LJYL[HY` 44 Agrobank Annual Report 2013 DĂŶĂŐĞŵĞŶƚŽŵŵŝƩĞĞ dŚĞŵĞŵďĞƌƐŽĨƚŚĞDĂŶĂŐĞŵĞŶƚŽŵŵŝƩĞĞ ĨƌŽŵƚŚĞƉƌĞǀŝŽƵƐƚŽƚŚĞĐƵƌƌĞŶƚƌĞƉŽƌƚĂƌĞ͗ 46 Agrobank Annual Report 2013 &ƌŽŵ>ĞŌƚŽZŝŐŚƚ͗ ͻDh^>/D,h^^/EŚŝĞĨZŝƐŬKĸĐĞƌͻ^DhE/^h/EŚŝĞĨ&ŝŶĂŶĐŝĂů^ĞƌǀŝĐĞƐKĸĐĞƌ ͻdK͛tEDK,&D/tEKd,DEWƌĞƐŝĚĞŶƚͬŚŝĞĨ džĞĐƵƟǀĞKĸĐĞƌ ͻ/E,DŚŝĞĨƌĞĚŝƚKĸĐĞƌͻ^z Eh&>^,,h/E^z h>:Z^,,h/EŚŝĞĨ&ŝŶĂŶĐĞKĸĐĞƌ ͻDzh^K&z/ŚŝĞĨKƉĞƌĂƟŽŶƐKĸĐĞƌ ͻE/<h>>,^,h Agrobank Annual Report 2013 47 MANDATED ROLE ͞/ŶĚĞĞĚ͕ůůĂŚǁŝůůŶŽƚĐŚĂŶŐĞƚŚĞ ĐŽŶĚŝƟŽŶŽĨĂƉĞŽƉůĞƵŶƟůƚŚĞLJ ĐŚĂŶŐĞǁŚĂƚŝƐŝŶƚŚĞŵƐĞůǀĞƐ͘͟ Surah Ar-Ra’d: 11 Our Mandated Role -PUHUJPUN7VY[MVSPV In line with the Bank’s mandated role, mandated Primary agriculture and agro-based industries ÄUHUJPUN PU PUJYLHZLK [V MYVT PU HJJV\U[LK MVY HIV\[ VM [V[HS ÄUHUJPUN HUK ;OLÄUHUJPUNIHSHUJLPUJYLHZLK[V94 [OL YLTHPUPUN ^LYL JOHUULSLK [V^HYKZ V[OLY TPSSPVU PU ! 94 TPSSPVU ^P[O ÄUHUJPUN ULLKZ VM [OL HNYPJ\S[\YL JVTT\UP[` HU H]LYHNL NYV^[O VM WLY HUU\T ;OL :\IZLJ[VYZ ^OPJO YLJLP]LK [OL I\SR VM ÄUHUJPUN ÄUHUJPUN IHSHUJL MVY WYPTHY` HNYPJ\S[\YL PUJYLHZLK \UKLYWYPTHY`HNYPJ\S[\YLPUJS\KLMVVKJYVWZ to RM3,616.2 million for the same period with an WHST VPS SP]LZ[VJR HUK ÄZOLYPLZ H]LYHNLNYV^[OYH[LVM WLYHUU\T 4HUKH[LK-PUHUJPUN94TPSSPVU 4,465.8 4,713.8 4,029.7 (69%) 5,000.0 (65%) (74%) 4,000.0 2,136.7 2,027.3 3,000.0 1,679.5 (35%) (31%) (26%) 2,000.0 Mandated 1,000.0 Non-mandated 0.0 2011 2012 2013 -PUHUJPUN)HSHUJL94TPSSPVU RM mill 7,000.0 6,493.1 6,393.3 6,166.4 5,707.4 5,568.1 6,000.0 5,000.0 3,415.1 3,616.2 4,000.0 2,998.1 3,183.4 2,592.8 3,000.0 2,000.0 Total Primary Agriculture 1,000.0 Total Financing Balance 0.0 2009 2010 2011 2012 2013 50 Agrobank Annual Report 2013 (NYPJ\S[\YL-PUHUJPUN)HSHUJL94TPSSPVU 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 2009 2010 2011 2012 2013 Food Crops Fisheries Livestock Oil Palm 6U[OL^OVSL(NYVIHUR»ZÄUHUJPUNZ[YLUN[OSPLZPU (NYPJ\S[\YL-PUHUJPUN94TPSSPVU ZOHYL RL` MVVK JVTTVKP[PLZ Z\JO HZ ÄZOLYPLZ SP]LZ[VJR Fisheries Agro-Based Process 435.5 124.0 vegetables, and paddy which have registered an 11.7% 3.3% H]LYHNLNYV^[OVM WLYHUU\TPU[OLWHZ[Ä]L Livestock Forestry 700.8 34.5 `LHYZV\[Z[YPWWPUNNYV^[OVM WLYHUU\TMVY[OL 18.7% non-food segment. The sound growth in the food 0.9% Others ZLNTLU[OHZLUHISLK(NYVIHUR[VYHPZLP[ZÄUHUJPUN 181.3 THYRL[ZOHYL[V PUMYVT PU 4.8% Oil Palm 1,011.7 Food Crops 27.1% 1,252.4 5\TILYVM(JJV\U[ZMVY7YPTHY`(NYPJ\S[\YL 33.5% 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 Food Sectors 20,000 Non-food 10,000 Primary agriculture 0 2009 2010 2011 2012 2013 Agrobank Annual Report 2013 51 5\TILY VM (JJV\U[Z MVY -VVK :LJ[VY -PUHUJPUN(WWYV]HSMVY-VVK:LJ[VY 5\TILY ZOHYL 94TPSSPVU ZOHYL Fisheries Herbs and Spices Fisheries Herbs and Spices 6,337 571 131.9 3.6 9.5% 0.9% 13.7% 0.4% Livestock Vegetables Livestock Vegetables 7,127 18,239 328.5 216.1 10.7% 27.5% 34.0% 22.4% Fruits Paddy 11,557 22,584 Paddy Fruits 180.4 17.4% 34.0% 104.7 10.8% 18.7% ;OL U\TILY VM ÄUHUJPUN HJJV\U[Z L_JLLKLK PUVM^OPJO ^HZ\UKLYWYPTHY` ;V[HS HWWYV]HSZ PU HTV\U[LK [V 94 IPSSPVU agriculture. In line with the National Agrofood Policy, ^OPJO NYL^ H[ HU H]LYHNL VM WLY HUU\T K\YPUN 5(7[OLU\TILYVMÄUHUJPUNMVY[OLMVVKZLJ[VY 0U [HUKLT ^P[O UH[PVUHS WVSPJ` [V YHPZL [OL PUJYLHZLKMYVT PU [V PU supply of food and enhance food security, Agrobank NYV^PUNHUH]LYHNLVM WLYHUU\T YLTHPULK JVTTP[[LK [V WYV]PKL ÄUHUJPUN [V [OL MVVK ZLJ[VY ^OPJO YLWYLZLU[LK VM [V[HS HWWYV]HSZ -PUHUJPUN(WWYV]HSMVY7YPTHY`(NYPJ\S[\YL (RM million) 80,000 70,000 60,000 50,000 40,000 30,000 Food Sectors 20,000 Non-food 10,000 Primary agriculture 0 2009 2010 2011 2012 2013 52 Agrobank Annual Report 2013 Under the food segment, the largest approval amount HUK ZTHSS LU[LYWYPZLZ PZ [OL SHYNL U\TILY VM ÄUHUJPUN ^LU[[VSP]LZ[VJR ]LNL[HISLZ HUKWHKK` HJJV\U[Z VM[V[HSILPUN\UKLY94 HUK Z\IZLJ[VYZ YLWYLZLU[LK HJJV\U[Z VM 94 [V 94 (JJV\U[Z94HUKHIV]LYLWYLZLU[LKVUS` The Bank’s focus still remains on the micro, small and VM HSS ÄUHUJPUN HJJV\U[Z 0U [LYTZ VM ]HS\L OV^L]LY TLKP\T LU[LYWYPZLZ :4,Z ^OPJO OH]L ILLU [OL JVYL ÄUHUJPUNVM94HUKILSV^HJJV\U[LKMVY business for the bank. A clear indication that the Bank TPJYV! ^OPSZ[ ÄUHUJPUN VM 94 VY TVYL is largely servicing the small-scale farmers for micro JVUZ[P[\[LKHIV\[ VM[V[HSÄUHUJPUN -PUHUJPUNI`:PaL5VVM(JJV\U[ ZOHYL >=1,000,000 - <5,000,000 Other 330 116 0.1% 0.1% >=500,000 - <1,000,000 439 0.2% >=100,000 - <500,000 12,681 5.4% >=50,000 - <100,000 <50,000 32,839 186,650 14.1% 80.1% -PUHUJPUNI`:PaL94TPSSPVU ZOHYL >=500,000 - <1,000,000 >=1,000,000 - <5,000,000 182.7 417.3 2.8% 6.5% Other >=100,000 - <500,000 1,029.9 1,493.2 23.4% 16.1% >=50,000 - <100,000 <50,000 1,558.3 1,711.9 24.4% 26.8% Agrobank Annual Report 2013 53 MANDATED ROLE &ŝŶĂŶĐŝĂů^ĞƌǀŝĐĞƐŝǀŝƐŝŽŶ ;OL -PUHUJPHS :LY]PJLZ +P]PZPVU -:+ JVUZPZ[Z VM [OL :\WWVY[I`)\ZPULZZ)HURPUNPUWYPTHY`HNYPJ\S[\YLK\YPUN business units Consumer Banking, Business Banking and [OL `LHY ZH^ YVI\Z[ NYV^[O PU VPS WHST WV\S[Y` Trade Finance as core business pillars that work together and ruminant sectors. In addition, participation in several with the other business enrichment units comprising national development programmes such as the economic Electronic Banking, Product Research and Development, and JVYYPKVYZ ,*,9 5*,9 HUK :+* HUK JVSSHIVYH[PUN ^P[O Business Planning and Performance Monitoring team to 54 Agrobank Annual Report 2013 -:+ *VUZ\TLY )HURPUN HYT WYV]PKLZ UV[ VUS` ÄUHUJPUN inclusion. Three pilot locations have been deployed in solutions to improve the well-being of customers but also +LJLTILY \UKLY 7LY[\I\OHU 7LSHKHUN 2H^HZHU other banking services such as deposit mobilisation and (PPK) through strategic collaboration with National Farmers payment services such as insurance facilities and utility (ZZVJPH[PVU5(-(: payment. ;OL`LHY^PSSZLL[OL)HURZ[YLUN[OLUPUNP[ZTHUKH[LK Emphasis by Electronic Banking Department (EBD) is role through continuous support of MOA’s policies and on providing e-banking channel to enhance customer- programmes in line with the National Agrofood Policy and JLU[YPJP[` HUK PTWYV]L V]LYHSS J\Z[VTLY L_WLYPLUJL ;OL National Commodities Policy and customer migration to RL` MVJ\Z VM ,)+ PU ^HZ VU L_WHUKPUN [OL IHZL e-payment platform being one of the key KPI for EBD. The in areas of AGROKad-ATM services, and AGRONet, the PTWSLTLU[H[PVU VM 4`*SLHY» -PUHUJPHS 7YVJLZZ ,_JOHUNL internet banking service for retail customers. A new banking (FPX) and Direct Debit Collection, Interbank GIRO transfer JOHUULS¸(.96(NLU[¹[OL)HUR»Z(NLU[)HURPUNZLY]PJL service via ATM and introduction of National Bill Payment was established during the year aimed at providing service :JOLTL5)7:]PH(.965L[^PSSHSZVILPUJS\KLKPU especially to the underserved community, agricultural [VM\Y[OLYL_WHUK(NYVIHUR»ZYLHJO[VJ\Z[VTLYZIV[OY\YHS ZLJ[VY HUK J\Z[VTLYZ PU [OL Y\YHS HYLHZ MVY ÄUHUJPHS and urban. Agrobank Annual Report 2013 55 ŐƌŽƉƌĞŶĞƵƌĞǀĞůŽƉŵĞŶƚWƌŽŐƌĂŵŵĞ The Agropreneur Development Programme (ADP) was develop agriculture into a fast growing business. ADP’s MVYTLKPU^P[O[OLTPZZPVU[VU\Y[\YLHNYVWYLUL\YZ THPU VIQLJ[P]LZ HYL [V L_WVZL V\Y J\Z[VTLYZ HUK from start-up stage to becoming a successful future customers to basic skills such as accounting, agropreneur locally and globally in line with the national THUHNLTLU[VMJHZOÅV^HUKKL]LSVWTLU[VM)\ZPULZZ agriculture development agenda. Its objectives are Plan, through training, seminars, forums and workshops. to provide knowledge, skill and correct attitude, with ÄUHUJPHS HUK [LJOUPJHS JVTWL[LUJPLZ [OH[ HYL ]P[HS MVY (U0UK\Z[Y`:WLJPHSPZ[ MICRO ADP I & II SMALL /! &+) () & ,)* !( MEDIUM /!! &#!& )' ,+*& )-! * ADP III /!!! ,*!& **)'" +$&&!& /!- & !& !& * +& /! &+) () & ,)* !( ) ')%& '+!-+!'& /!! ( ! ! &#!& )' ,+*& ADP IV /- )'" +& !&&!$$&&!& )-! s *!* /!!! '%% )!$Tr ,* /! &+) () & ,)* !( /-! '$ ' $&+) () & ,)* /!- & !& !& * +& /!! &+ )&+!'&$ &#!& !&& /-!! )'& % &+& ) ')%& '+!-+!'& /!!! &+ )&+!'&$Tr ,* Te &'$' .)! &++!'& /- )'" +& !&&!$$&&!& /!- & !& !& * +& &+ )% !+e ) ')%& '+!-+!'& /-! )'& % &+& /- )'" +& !&&!$$&&!& Te &'$' .)! &++!'& -& /-! )' ,+& Te &'$' . * ) - $'(% &t 0UÄM[LLUJV\YZLZ^LYLJVUK\J[LK\UKLY[OL(+7 H[`LHYLUK;OL)HUR^PSSJVU[PU\L[V^VYR^P[O involving 343 customers bringing the total number of MOA and its agencies in identifying future entrepreneurs entrepreneurs undergoing training by the Bank to 11,665 for the programmes conducted. 56 Agrobank Annual Report 2013 Entrepreneur Success Stories (NYVIHUROHZILLUYLSLU[SLZZPUP[ZW\YZ\P[[VH\NTLU[HNYPJ\S[\YL]LU[\YLZHUKWYVTV[LZVWOPZ[PJH[PVU[OYV\NOÄUHUJPUN HUKVќLYPUN]HYPV\ZMVYTZVMHZZPZ[HUJL4HU`VMZ\JOYLJPWPLU[ZOH]LILJVTLH[LZ[HTLU[VM[OL)HUR»ZLUKLH]V\YZ and ultimate objective. 3PZ[LKILSV^HYLML^VMTHU`^OVOH]LYLHSPZLK[OLPYHTIP[PVUZ[OYV\NO(NYVIHUR»ZWYVK\J[ZHUKZLY]PJLZ! 1,9<24(+<7(2(30,5;,9790:, (SP6THYHJX\PYLKÄUHUJPUNHPKMVYOPZWPJRSLWYVK\JPUNVWLYH[PVUZ[OYV\NO(NYVIHURTPJYVJYLKP[ZWYVWLY[`V^ULYZOPW ZJOLTLZHUKJVTTLYJPHSJYLKP[ZMHJPSP[PLZ>P[OIL[[LY^VYRPUNL_WLUKP[\YLHZ^LSSHZOPNOLYL_WLUKP[\YLJHWHIPSP[`OL ^HZHISL[VPUP[PH[LWLUPUZ\SHY^PKLTHYRL[PUNHUKL_WHUKIL`VUK[OH[/PZWYVK\J[ZHYLHSZVUV^H]HPSHISLPU;OHPSHUK :V\[O(MYPJH,UNSHUKHUK[OL4PKKSL,HZ[;VKH`1LY\R4HK\7HR(SP,U[LYWYPZLLTWSV`Z Z[HќHUKOHZJ\S[P]H[LK OLJ[HYLZVMWSHU[H[PVUSHUK Agrobank Annual Report 2013 57 7,950(.((5A<32695(05 :[HY[PUN^P[OHIHJR`HYKJH[[SLMHYTPUNI\ZPULZZ"A\SRVYUHPUIPU/\ZZHPUZV\NO[ÄUHUJPUN^OPJOZH^OPZI\ZPULZZL_WHUK ZPNUPÄJHU[S`" HJX\PYPUN H IPNNLY SV[ MVY OPZ VWLYH[PVUZ TLHZ\YPUN OLJ[HYLZ PU 2HTW\UN )HRVUN ;VKH`OL OHZ become a well-known meat supplier in Kedah and Perlis. In addition, he has also opened a frozen products store. He L_WLJ[Z[VL_WHUKOPZI\ZPULZZM\Y[OLYPU[OLM\[\YL^P[O[OLHJX\PZP[PVUVMHZSH\NO[LYOV\ZLZSH\NO[LYPUNTHJOPULZHUK cowsheds. 58 Agrobank Annual Report 2013 GANTANG ENTERPRISE >P[OHUPUP[PHSZ[HY[\WJHWP[HSVM94 4VOHTHK/HZHUIPU4VOHTLK9H^[OLYVWLYH[LK^P[OTPUPTHSLX\PWTLU[ 0UOLTV]LK[VH[OYLLHJYLZP[LPU2HTW\UN4LUNR\HUN/\Q\UN)HSPUN/HZZHU[OLUZV\NO[ÄUHUJPUN\UKLY 4VKHS Agrobank Annual Report 2013 59 7,.(.(<(8<(*<3;<9,:+5)/+ 7LNHNH\OVSKZHJYLZVMSHUKHUK WVUKZPUP[Z 60 Agrobank Annual Report 2013 OUR ACHIEVEMENTS AND EVENTS “Allah knows exactly what to give you to help you return to Him. The events in your life are purposeful, appropriate & non-random.” Shaykh Hamza Yusuf OUR ACHIEVEMENTS AND EVENTS ŽƌƉŽƌĂƚĞĐƟǀŝƟĞƐϮϬϭϯ January 2013 31/1/2013 Soft launch of Agrobank’s branch at UTC Felda Tenggaroh (2), Johor February 2013 14/2/2013 Dato’ Wan Mohd Fadzmi Wan Othman with contest winners of Le Tour de Langkawi 15/2/2013 Prime Minister, Dato’ Sri Mohd Najib Tun Abdul Razak launches Agrobank’s new branch at UTC Perak March 2013 14/3/2013 The Star-News in Education (Star-NiE) Programme at SK Cerana Putih, Alor Gajah, Melaka. 12/3/2013 Agrobank Scholarship Award Programme 17/3/2013 Zakat contribution in Bachok, 21/3/2013 Kelantan Majlis Bersama Rakyat - DYTM Tuanku Syed Faizuddin Jamalullail, Raja Muda (Crown Prince) of Perlis (second from right) at the Tuanku Bersama Agrobank dan Rakyat event 64 Agrobank Annual Report 2013 April 2013 9/4/2013 Agrobank’s 5th Anniversary Celebration 27/4/2013 Former Minister of Agriculture and Agro- Based Industry, Dato’ Seri Noh Omar (second from left) launches Agrobank’s new branch in Sungai Buloh 28/4/2013 Dato’ Seri Noh Omar launches Agrobank’s ATM at Pasir Panjang, Kelantan 11/4/2013 Prime Minister, YAB Dato’ Sri Mohd Najib Tun Abdul Razak launches Agrobank’s new branch at UTC Pahang 30/4/2013 Ustaz Wan Akashah and Datuk Ustazah Siti Norbahyah at Semanis Kurma Talk Show held at Agrobank HQ Agrobank Annual Report 2013 65 May 2013 2/5/2013 Dato’ Wan Mohd Fadzmi Wan Othman provides cash contribution to the underprivileged at Tanjung Karang, 28/5/2013 Selangor Agrobank was honoured with the Best Brands in Financial - Agriculture Banking Award 2012-2013 21/5/2013 Car Donation for PERKAYA in Baling, Kedah 30/5/2013 Ustaz Don Daniyal giving a talk to employees at Agrobank HQ June 2013 14/6/201 6ѝJPHS]PZP[I`@) Dato’ Sri Ismail Sabri Yaakob, Minister of Agriculture and Agro-based Industry (second from right) to Agrobank’s HQ 14/6/2013 27/6/2013 MoU between all agencies under Ministry of Agriculture 6ѝJPHSSH\UJOVM(.965L[I` and Agro-based Industry (MOA) with Agrobank Second Finance Minister, Dato’ Seri Ahmad Husni Mohamad Hanadzlah (second from right) 66 Agrobank Annual Report 2013 July 2013 September 2013 16/7/2013 Zakat contribution and vehicle donation - Pertubuhan Kebajikan dan Penjagaan Nur Hidayah, Sungai Buloh 5/9/2013 YB Dato’ Sri Ismail Sabri 23/7/2013 Yaakob with Dato’ Wan Mohd children from Fadzmi Wan orphanage Othman (right) in ‘Bual Biz’ talk show, RTM1 5/9/2013 August 2013 YB Dato’ Sri Ismail Sabri Yaakob H[[LUKPUN(NYVIHUR»Z/HYP9H`H(PKPSÄ[YP Celebration 2/8/2013 Zakat contribution – Chenor, Pahang 23/8/2013 Corporate Hari 9H`H(PKPSÄ[YP Celebration 5/9/2013 6ѝJPHS]PZP[ by Tanzanian Delegation Agrobank Annual Report 2013 67 October 2013 9/10/2013 Prize giving ceremony – November 2013 ‘Let’s AGRONet’ campaign 9/11/2013 22/10/2013 Agrobank’s booth during Hari Penternak dan Car donation event – Peladang Peringkat Kebangsaan (HPPNK) Yayasan ADDIN, 2013 in Kuantan, Pahang Perak 9/11/2013 YAB Dato’ Sri Mohd Najib Tun Abdul Razak giving a speech during HPPNK’s Opening Ceremony 23/10/2013 TYT Tun Datuk Seri Utama Mohd Khalil Yaakob, Yang Di-Pertua Negeri Melaka receiving Agrobank’s zakat contribution on behalf of Pusat Pungutan Zakat (PPZ) Melaka 68 Agrobank Annual Report 2013 ǁĂƌĚƐĂŶĚZĞĐŽŐŶŝƟŽŶ 2013 2012 The BrandLaureate Awards 2013, The BrandLaureate Awards 2012, Best Brands in Financial – Agriculture Banking Best Brands in Financial – Agriculture Banking Agrobank took home the prestigious The BrandLaureate Agrobank won The BrandLaureate Award 2013 in Award 2012, Best Brands in Financial – Agriculture the category of Best Brands in Financial – Agriculture )HURPUNHJJVYKLKI`;OL(ZPH7HJPÄJ)YHUKZ Banking for two consecutive years accorded by The Foundation (APBF). (ZPH7HJPÄJ)YHUKZ-V\UKH[PVU(7)- Malaysia’s 100 Leading Graduate Employers 2012 Ranked 76th Most Preferred Employer, Agrobank was voted one of Malaysia’s 100 Leading Graduate Employers for the year of 2012. ϳϬ Agrobank Annual Report 2013 2010 Emerging Bank of the Year Anugerah Perak – Jualan Wasiat Tertinggi Agrobank received the prestigious ‘Emerging Bank Agrobank received the Anugerah Perak – of the Year’ award during the Malaysia Business Jualan Wasiat Tertinggi Antara Bank from Leadership Awards 2010 Ceremony. Amanah Raya Berhad (ARB). National Service Challenge 2010 2008 Agrobank received three awards in the National Service Challenge organised by Focus Learning Top Development Financial Institution (DFI) 2008 Agrobank was conferred ‘Top DFI 2008’ award from Credit Guarantee Corporation Malaysia Berhad (CGC) 2009 at the Top SMI Supporter Awards 2008. National Service Challenge 2009 Agrobank took home three awards in the National Service Challenge organised by Focus Learning. Agrobank Annual Report 2013 ϳϭ CORPORATE GOVERNANCE “Then when you have taken a decision, put your trust in Allah.” Surah Ali-Imran: 159 CORPORATE GOVERNANCE ^ƚĂƚĞŵĞŶƚŽĨŽƌƉŽƌĂƚĞ'ŽǀĞƌŶĂŶĐĞ Composition of the Board of Directors The Board of Directors and their attendance in 2013 Board Meetings are as follows: As at 31 December 2013, the Board of Directors Board Members Position Attendance* % comprised eight (8) non-executive members (including the Chairman) and one (1) executive director, the Tan Sri Faizah Mohd Tahir Chairman 14/14 100 7YLZPKLU[*OPLM,_LJ\[P]L6ѝJLY Datuk Seri Che Mohd Hashim Abdullah Member 9/14 64 Rashidah Mohd Sies Member 14/14 100 Datuk Dr Saharan Haji Anang Member 14/14 100 The Board consists of members with vast experience Datuk Johar Che Mat Member 14/14 100 PU]HYPV\ZÄLSKZZ\JOHZI\ZPULZZÄUHUJLHJJV\U[PUN Md. Hilmi Datuk Haji Md Noor Member 13/14 93 economics and agriculture. One (1) director is a Ng Chih Kaye Member 13/14 93 representative of Ministry of Finance (MOF) while another DatoҋSalehuddin Saidin director represents the Ministry of Agriculture and Agro- (Appointed 3 May 2013) Member 5/9 56 Based Industry (MOA). DatoҋWan Mohd Fadzmi Wan Othman Member 13/14 93 Datin Ruzaina Wan Haniff Member 1/2 50 (Resigned : 28 February 2013) 0[PZZ\ѝJPLU[[VZH`[OH[[OL)VHYKVM+PYLJ[VYZJVUZPZ[Z * Reflects the number of meetings held during the period the Directors held office. of members that represent various interests that can improve the Bank’s performance as well as have the Appointment of Board of Directors ability to make sound judgments and decisions on issues involving the Bank’s strategy, implementation and Appointment of each member of the Board of Directors performance. is subject to the Bank Pertanian Malaysia Berhad Act 2008 and the Company’s Articles of Association HZ ^LSS HZ ]LYPÄJH[PVU MYVT )HUR 5LNHYH 4HSH`ZPH as prescribed under subsection 6(1), Development Financial Institutions Act 2002. The period for the Board VM+PYLJ[VYZ»ÄYZ[HWWVPU[TLU[PZUV[L_JLLKPUN[^V years and subsequent re-appointment tenure of one (1) year. 74 Agrobank Annual Report 2013 Objective Directors are expected to contribute actively to the function of the Board and to allocate adequate time and The Board performs its oversight role by ensuring that LќVY[[VKPZJOHYNL[OLPYK\[PLZLќLJ[P]LS` the Bank implements prudent policies and practices. The Board also ensures maximisation of shareholders’ Directors must attend at least 75% of the meetings held PU[LYLZ[[OYV\NOKPSPNLU[V]LYZPNO[VM[OL)HUR»ZHќHPYZ PUHÄUHUJPHS`LHY The Board establishes, among others, the corporate values, vision and strategy that will direct the Bank’s In 2013, the Board of Directors met twelve (12) times in HJ[P]P[PLZ HUK YLTHPUZ H^HYL VM [OL [`WLZ VM ÄUHUJPHS addition to two (2) special meetings. activities the Bank intends to pursue. The management is responsible for providing the Board The Board is responsible to act in the Bank’s best with complete, accurate and adequate information in a interest and to protect it from inappropriate actions or timely manner prior to the Board Meetings on an ongoing PUÅ\LUJLZVMKVTPUHU[VYJVU[YVSSPUNZOHYLOVSKLYZ[OH[ basis. This enables the Board to examine and review the are detrimental or not in the best interest of the Bank and matters to be discussed at the Board meetings and to its shareholders and stakeholders. make sound judgments and decisions. Board Meetings and Supply of Information to the All Directors have access to all information and records Board of Directors of the Bank as well as the advice and services of the Company Secretary who is also the secretary to the The Board of Directors holds meetings at least once a Board Committees. month while Special Board Meetings are held as and when required. Agrobank Annual Report 2013 75 ^ƚĂƚĞŵĞŶƚŽĨZŝƐŬDĂŶĂŐĞŵĞŶƚ The Bank embraces risk management as an integral 1. The risk management approach is based on the component of the Bank’s business, operations and three lines of defence, namely risk-taking units, risk decision making process. In ensuring that the Bank control units and internal audit. achieves optimum returns whilst operating within a 2 Risk-taking units are responsible for the day-to- sound business environment, the risk management day management of inherent risks in their business team is involved at the early stage of the risk taking activities while risk control units are responsible to process by providing independent input including establish risk management frameworks and develop relevant valuations, credit evaluations, new product [VVSZ HUK TL[OVKVSVNPLZ MVY [OL PKLU[PÄJH[PVU assessment, etc. These input enables the business to measurement, mitigation, monitoring, control and be priced appropriately in relation to return. reporting of risks. Complementing the two lines of defence is Internal Audit, which provides independent The key strategic objectives of risk management are: HZZ\YHUJL VM [OL LќLJ[P]LULZZ VM [OL YPZR management approach. ;V WYV[LJ[ (NYVIHUR»Z ÄUHUJPHS ZV\UKULZZ I` 3. Risk management provides oversight function for the aligning the Bank’s risk appetite with the available and major risks, including credit risk, market risk, liquidity desired risk capital levels. YPZRVWLYH[PVUHSYPZRHUKV[OLYPUK\Z[Y`ZWLJPÄJYPZRZ ;V WYV[LJ[ (NYVIHUR»Z YLW\[H[PVU I` WYLZLY]PUN [OL 4. Risk management ensures that the core risk policies integrity of the Bank’s business. of the Bank are consistent, sets the risk tolerance ;VPUJ\SJH[LHYPZRH^HYLULZZHUK[YHUZWHYLUJ`J\S[\YL level and facilitates the implementation of an HJYVZZ[OLVYNHUPZH[PVUPU]VS]PUNHSSSL]LSZVMZ[Hќ integrated risk-adjusted measurement framework. ;V LZ[HISPZO YPZR HZ HU LZZLU[PHS HUK PU[LNYHS 5. Risk management is functionally and organisationally component in making sound commercial decisions. independent of business units and other risk-taking ;V W\[ PU WSHJL YPZR THUHNLTLU[ PUKLWLUKLU[ VM units within the Bank. business activities. 6. The Board, through the Board Risk Management Committee is responsible for the oversight function Seven Broad Risk Management Principles on overall risk exposed by the Bank. 7. Risk management is responsible for the execution Agrobank’s Risk Management Framework is premised of various risk policies and related decisions by on seven broad principles as follows: the Board. 76 Agrobank Annual Report 2013 Diagram 1: Three Lines of Defence Concept in Managing Risk BOARD OF DIRECTORS SENIOR MANAGEMENT 1ST LINE OF DEFENCE 2ND LINE OF DEFENCE 3RD LINE OF DEFENCE BUSINESS SUPPORT RISK MANAGEMENT INTERNAL AUDIT LINES UNITS COMPLIANCE RISK MANAGEMENT REPORTING Responsible for managing Develops risk frameworks, Independent assurance specific risks in the day-to-day policies, methodologies and over risk management activities tools initiatives Risk Management Governance instruments held failing to perform its contractual obligations to the Bank. In accordance with the Bank’s risk management 4HYRL[9PZRHYPZPUNMYVTÅ\J[\H[PVUZPU[OL]HS\LVM structure, the Board Risk Management Committee investment exposure arising from changes in market (BRMC) assumes the ultimate responsibility on behalf YPZRMHJ[VYZZ\JOHZPU[LYLZ[WYVÄ[YH[LZJ\YYLUJ` of the Board of Directors for the supervision of risk exchange rates, credit spreads, equity prices, etc. management within the Bank. In line with the best 3PX\PKP[` 9PZR HYPZPUN MYVT [OL )HUR»Z PUHIPSP[` [V practices, the BRMC determines the risk policy objective LѝJPLU[S`TLL[WYLZLU[HUKM\[\YLM\UKPUNULLKZVY of the Bank. regulator obligations, when they come due, which TH` HK]LYZLS` HќLJ[ P[Z KHPS` VWLYH[PVUZ HUK PUJ\Y Responsibilities for administering risk management and unacceptable losses; and, control is delegated to the Management Risk Committee 6WLYH[PVUHS 9PZR HYPZPUN MYVT PU[LYUHS WYVJLZZLZ (MRC). The MRC is chaired by the President/Chief which may result from inadequacies or failure ,_LJ\[P]L6ѝJLYHUK\UKLY[HRLZ[OLV]LYZPNO[M\UJ[PVU in process, controls or projects due to fraud, for overall risk limits, and aligning them to the Bank’s risk \UH\[OVYPZLK HJ[P]P[PLZ LYYVYVTPZZPVU PULѝJPLUJ` appetite in addressing one or more of the following :- system failure or from external events. *YLKP[ 9PZR HYPZPUN MYVT SVZZLZ K\L [V VISPNVY market counterparty or issuer of securities or other Agrobank Annual Report 2013 77 Diagram 2: Agrobank Risk Governance Structure BOARD OF DIRECTORS Ultimately responsible for risk management in the Bank BOARD RISK MANAGEMENT BOARD CREDIT COMMITTEE (BCC) COMMITTEE (BRMC) OTHER Review fresh or additional loan applications Perform risk oversight function which BOARD in accordance to pre-determined authority includes approval of risk management COMMITTEES BOARD limits recommended by the Management framework, vision, strategies, policies COMMITTEES Credit Committee (MCC). and risk tolerance. MANAGEMENT ASSET & LIABILITY MANAGEMENT OTHER RISK COMMITTEE CREDIT MANAGEMENT COMMITTEE (MRC) (ALCO) COMMITTEE COMMITTEES COMMITTEE Responsible for the management of all material risks within the Bank. The MRC encompases all risk types except market MANAGEMENT liquidity risks which are under the purview of ALCO. The MCC is the centralised financing approval committee for the Bank. Diagram 3: Agrobank Risk Management Process Risk Origination Risk Risk Assessment Risk Control Risk Monitoring by Business Units Identification and Measurement and Mitigation and Reporting Type of Risks Identify, Understand Quantify and Assess Recommend Measures to Monitor and Report on and Analyse Risks Risk Impact Control and Mitigate Risk Risk Compliance CREDIT RISK Concentration risk, benchmarking, Credit Risk Rating, stress testing, Policies and procedures, selection of Portfolio Analysis, “red flags”, post-mortem review. establishing processes to ensure credit personnel, independent credit rehabilitation/NPL monitoring and timeliness and consistency of review, post-appraisal review and credit independent credit review. credit assessment. limits. MARKET RISK Review on market volatility/outlook, Periodic review of policies, concentration risk, analysis/projections on Valuation, stress testing, Policies and procedures, liquidity, procedures and limits, internal and liquidity and maturity and analysis on monitoring, sensitivity/simulation interest rate, risk weighted capital and regulatory compliance. capital adequacy analysis on Earning, Net Interest exposure limits, segregation of duties Income/Capital and Liquidity and diversification strategy Monitoring of Key Risk Indicators and performance reports on OPERATIONAL RISK Assessment risk profile for new product, Regular review on control Comprehensive internal control, people, processes, systems and review of existing products, adequacy and effectiveness at including segregation of functions, external events. implementation of RCSA and KRIs, and each process level, business segmented/multi-tier authorisation incident reporting. activities and the bank as a whole process and regular testing of BCM and Periodical self-monitoring of DRP. Shariah risks. Valuation on severity of Shariah SHARIAH RISK Review and assessment of risks and assessment on its Policies and procedures, awareness on Non-Shariah-compliant products and impact due to Shariah Shariah concepts and principles and services. non-compliance continuously sharing of knowledge. 78 Agrobank Annual Report 2013 Operational and Shariah) and Credit Evaluation and Diagram 4: 9PZR4HUHNLTLU[-YHTL^VYR94- 9L]PL^+LWHY[TLU[H[/LHKVѝJLHUK*YLKP[,]HS\H[PVU HUK 9L]PL^ The CRO actively engages the Board and Senior MARKET AND RISK OPERATIONAL RISK LIQUIDITY MANAGEMENT Management on Risk Management issues and initiatives. MANAGEMENT RISK FRAME- FRAMEWORK WORK FRAME- WORK The RMD monitors risk taking activities, initiates and proposes risk policies, risk measurement methodologies SHARIAH RISK and risk limits, performs independent review of FRAMEWORK ÄUHUJPUNHZZL[ZX\HSP[`HUKÄUHUJPUNYLJV]LY`WSHUHUK coordinates capital market products and deployment. Agrobank’s Risk Management Process In propagating and ensuring compliance to the market risk framework, RMD reviews treasury trading strategies, The risk management process within the Bank involves the analyses positions, and activities vis-à-vis changes in the PKLU[PÄJH[PVU TLHZ\YLTLU[ TP[PNH[PVU TVUP[VYPUN HUK ÄUHUJPHSTHYRL[ YLWVY[PUNPUVW[PTPZPUNYL[\YUZVUÄUHUJPUNHUKYPZR[HRPUN activities. This process is practiced in managing credit, Towards the implementations of Basel II in the Bank, market, operational and shariah risks across the Bank. RMD is developing the internal rating and scoring models. ;OL 9VSLZ VM *OPLM 9PZR 6ɉJLY *96 HUK 9PZR Management Division Within the second line of defence is Risk Management Division (RMD), a function independent of business to assist the management and the various committees in the monitoring and controlling the Bank’s risk exposures. The RMD comprises Risk Management (Credit, Market, Agrobank Annual Report 2013 79 Key Areas of Risk Management:- The Bank’s Credit Risk Management Framework addresses the following areas: 1. Credit Risk 4HUHNLTLU[HUKX\HSP[`VMSVHUÄUHUJPUNHZZL[Z Credit risk is the risk of potential loss due to failure including the credit policies and guidelines, credit of or unwillingness of customers or counterparties approval, credit risk measurement and competency [VM\SÄS[OLPYJVU[YHJ[\HSÄUHUJPHSVISPNH[PVUZHZHUK of credit personnel; when they arise. 3VHUWYLZLY]H[PVU^OPJOJV]LYZ[OLJYLKP[YL]PL^ process, early detection and management of The goal of credit risk management is to keep credit vulnerable credits and recovery; and, risk exposure to an acceptable level and to ensure *YLKP[JVUJLU[YH[PVUWVSPJ`MVYLќLJ[P]LWVY[MVSPV the returns commensurate with risk. management. The Bank’s exposure to credit risk is primarily from Credit Evaluation and Review undertakes SLUKPUNÄUHUJPUN HJ[P]P[PLZ [V YL[HPS J\Z[VTLYZ independent assessment done by business units to micro, small and medium-sized enterprises (SMEs) YLÅLJ[PUKLWLUKLUJ`MYVTSVHUÄUHUJPUNVYPNPUH[PVU and corporate customers. Investment in equities, and credit activities. IVUKZ HUK V[OLY THYRL[HISL ZLJ\YP[PLZ ÄUHUJPHS instruments, trading and other banking activities, 2. Market and Liquidity Risks ^OL[OLYP[PZJSHZZPÄLK\UKLYIHURPUNIVVRVY[YHKPUN book, also expose the Bank to credit risk. 4HYRL[9PZRPZWV[LU[PHSSVZZLZPUVUHUKVќ)HSHUJL sheet arising from unexpected movements in market On the oversight function, the Management WYPJLZK\L[V]VSH[PSP[`PUPU[LYLZ[WYVÄ[YH[LZLX\P[` Risk Committee (MRC) supports the Board Risk prices, commodity prices, foreign exchange rates etc Management Committee (BRMC) in credit risk ^OPJOZPNUPÄJHU[S`HќLJ[[OLWYVÄ[HIPSP[`VM[OL)HUR management. Both committees are responsible to YLWYLZLU[LK I` 5L[ 7YVÄ[0U[LYLZ[ 0UJVTL 5700 VY approve/review the Bank’s credit risk framework and 5L[7YVÄ[0U[LYLZ[4HYNPU5704HUKZOHYLOVSKLYZ» policies, align credit risk management with business fund. Z[YH[LNPLZHUKWSHUUPUNTVUP[VYJYLKP[WYVÄSLZHUK portfolios and deliberate necessary actions to be Liquidity risk is the risk arising from the Bank’s executed to ensure that credit risks remain within PUHIPSP[`[VTLL[P[ZJHZOÅV^VISPNH[PVUHZ[OL`MHSS tolerance levels. due, at a reasonable price which may arise due to HTPZTH[JOIL[^LLU[OLI\JRL[LKJHZOÅV^ZHUK The management of credit risk is governed by the [OL\UL_WLJ[LKV\[ÅV^VMM\UKZVYKLWVZP[Y\UVќ Credit Risk Management Framework which sets out Liquidity Risk is subdivided into two categories as the risk management governance and infrastructure, follows; risk management processes and control responsibilities. ϴϬ Agrobank Annual Report 2013 -\UKPUN3PX\PKP[`9PZR *SLHYKLSPULH[PVUVM[OLYVSLZHUKYLZWVUZPIPSP[PLZ (YPZPUNMYVT[OLPUHIPSP[`VM[OL)HUR[VM\SÄSWH`TLU[ of the three lines of defense comprise of the Risk VYJHZOÅV^VISPNH[PVUZHZ[OL`MHSSK\L^P[OV\[ Taking Units (Business Units), Risk Control Units incurring unacceptable cost or losses (Market Risk Management Department-MRMD) 4HYRL[3PX\PKP[`9PZR and Internal Audit to ensure the integrity of risk 9LMLYZ[V[OLPUHIPSP[`VM[OL)HUR[V\U^PUKVќZL[ management system in the Bank. its position in the market within a short span of time or near to previous market price. ALCO is responsible for overseeing the Bank’s operations in relation to liquidity and interest rate 4HYRL[9PZR4HUHNLTLU[PU]VS]LZ[OLPKLU[PÄJH[PVU risks for Conventional and Islamic Banking while of various risk factors, monitoring and measuring BRMC’s role is to approve/review prescribed limits exposures to those factors using selected tools and to ensure compliance of those limits. and models, assessing the Bank’s ability to LќLJ[P]LS`THUHNL[OLYPZRZHUKYLWVY[PUN[VYLSL]HU[ 3. Operational Risk committees on limits compliance and mitigation strategies. The Bank’s risk appetite is set out at Operational risk is the risk of loss resulting from various levels and monitored continuously by the inadequate or failed internal processes, people and Asset and Liability Committee (ALCO). Z`Z[LTZ VY MYVT L_[LYUHS L]LU[Z ;OPZ KLÄUP[PVU includes legal risk but excludes strategic and Market and liquidity risks are managed through the reputational risk. Operational risk is inherent in following system and tools; the Bank’s business operations and therefore unavoidable. The objective of operational risk 5L^3PX\PKP[`-YHTL^VYR53- management is to take appropriate actions to 4H_PT\T*\T\SH[P]L6\[ÅV^Z4*6 manage its operational risk and keep it within an *VU[PUNLUJ`-\UKPUN7SHU*-7 acceptable level. -\UK;YHUZMLY7YPJPUN-;7 The Operational Risk Management Department Market and Liquidity Risk Framework (MLRF) (ORMD) was established to strengthen the encompasses the following aspects; management of operational risk. These risks are managed through the following key functions: 4HUHNLTLU[VM[OL)HUR»ZTHYRL[HUKSPX\PKP[`YPZR exposures including the issuance and regularly :V\UK6WLYH[PVUHS9PZR4HUHNLTLU[-YHTL^VYR review of guidelines, policies and manuals. and policies; ;OLYLZWVUZPIPSP[PLZVM[OL)VHYK)94*(3*6HUK +L]LSVWTLU[HUK0TWSLTLU[H[PVUVM694[VVSZ MRC with regards to the market and liquidity risk and ORM systems; and, management. /H]PUN PU WSHJL H YVI\Z[ HUK L_LJ\[HISL Business Continuity Management plan. Agrobank Annual Report 2013 ϴϭ The ORMD has developed and implemented the 4. Shariah Non-Compliance Risk following Risk Management Tools: Shariah risk is the risk arising from Agrobank’s failure 0UJPKLU[4HUHNLTLU[HUK+H[H*VSSLJ[PVU04+* to comply with the Shariah rules and principles determined by relevant Shariah regulatory councils IMDC provides a structured process to build a or committees. repository of risk-related data to support robust and granular reporting of operational risk incidents and The Shariah Risk Management is established within losses. The timely detection and monitoring of risks the Bank to perform Shariah Risk Management will help to reduce losses due to risk events. The data functions which is required by Bank Negara collected will be used to forecast, measure, monitor Malaysia’s Shariah Governance Framework (SGF). and report on potential operational risk exposure in the Bank and to prepare the groundwork for data The Shariah Risk Management Framework (SRMF) management, analysis, reporting and monitoring has been developed and updated with the following issues for Basel II compliance. objectives: 9PZRHUK*VU[YVS:LSM(ZZLZZTLU[9*:( ,UZ\YL HSS [OL )HUR»Z WYVK\J[Z ZLY]PJLZ HUK activities comply with Shariah principles as RCSA enables inherent operational risks and controls determined by Shariah Committee; are continuously assessed to identify control gaps ,UZ\YL:OHYPHOYPZRZHYL\UKLYZ[VVKHUKJVU[YVSZ and develop action plans to narrow the gaps. This are implemented consistently and uniformly PZ H YPZR WYVÄSPUN [VVS ^OPJO PZ \ZLK [V YLK\JL [OL throughout the Bank; residual risk of critical business processes. 0KLU[PM` HSS :OHYPHO YPZRZ HYPZPUN MYVT WLVWSL processes, products, strategies, systems and 2L`9PZR0UKPJH[VYZ290Z internal controls; and, ,Z[HISPZO[OLWYVJLZZMVYTLHZ\YPUNTVUP[VYPUN KRIs provides early warning signals of increasing controlling and reporting of Shariah non- risk and/or control failures. ORMD will work with compliance risks. business and support units to develop and review their KRIs with the setting of appropriate thresholds. ϴϮ Agrobank Annual Report 2013 Statement of Internal Control RESPONSIBILITY ÄUHUJPUN PU]LZ[TLU[ HJX\PZP[PVU HUK KPZWVZHS VM asset. The Board acknowledges the responsibility of a sound internal control system especially of its integrity and b. Compliance with internal controls and the relevant adequacy. laws and regulations are set out in operation manuals, guidelines and directives issued by the Bank. These The risk management underpinning the Bank’s internal are updated from time to time in tandem with changes control framework provides reasonable assurance of in the business environment or regulatory protecting the Bank against material misstatement of requirements. ÄUHUJPHS PUMVYTH[PVU HUK YLJVYKZ ÄUHUJPHS SVZZLZ VY fraud and mismanagement. c. Management and oversight of the Bank’s core areas has also been enhanced with the establishment 9PZRZ HќLJ[PUN [OL )HUR HYL PKLU[PÄLK HZZLZZLK HUK of operational committees which include the addressed by the appropriate control structures and Management Information Technology Committee, processes. A regular review and update on the structures Management Credit Committee and Management and processes are carried out in line with the changes Procurement Committee. arising within the business environment and internal operating conditions. This ongoing process has been in d. Management Risk Committee (MRC) WSHJLMVY[OL^OVSLÄUHUJPHS`LHY\UKLYYL]PL^ The MRC was established to assist the Board to oversee the overall management of principal areas of The management assists the Board in the implementation risk. The risk management is further strengthened of the Board’s policies and procedures on risk and with the establishment of the Asset Liability control by identifying and assessing the risks faced, and Committee which manages market and liquidity risks. in the design, operation and monitoring of appropriate internal controls to mitigate and control these risks. e. Internal Audit The Internal Audit function provides independent, 0UHSSTH[LYPHSHZWLJ[Z[OL*OPLM,_LJ\[P]L6ѝJLY*,6 objective assurance and consulting services designed HUK*OPLM-PUHUJPHS6ѝJLY*-6ILSPL]L[OH[IHZLKVU to add value and improve the Bank’s operations. the processes adopted, it is suitable in reviewing the Accomplishment of the Bank’s objectives is facilitated adequacy and integrity of the system of internal controls through a systematic and disciplined audit approach. of the Bank. Premised on the risk-based approach, prioritisation of the audit review lies in the risk and control KEY INTERNAL CONTROL PROCESSES associated with the auditable entities within the established audit universe. Pertinent key processes have been established to review the adequacy and integrity of the system of internal ;OL LќLJ[P]LULZZ VM [OL NV]LYUHUJL YPZR controls which include the following: management and control processes is assessed by H *SLHYS` KLÄULK MYHTL^VYR ^P[O HWWYVWYPH[L MVYTPUNVWPUPVUZVU^OL[OLY[OLPKLU[PÄLKYPZRZTH` empowerment and authority limits are in place OPUKLY[OLM\SÄSTLU[VMWHY[PJ\SHYVIQLJ[P]LZ in respect of the day-to-day banking operations, 84 Agrobank Annual Report 2013 In tandem with the process, improvements are h. An annual business plan is prepared by the Bank’s advocated to enhance the governance structure and business units and approved by the Board. Annual practices. budgets are also approved by the respective Board committees. Actual performances are assessed 9LJ[PÄJH[PVU VM [OL PZZ\LZ PZ MVSSV^LK \W I` [OL against the approved budgets by which explanations management and deliberated at the Management HYL WYV]PKLK VU ZPNUPÄJHU[ ]HYPHUJLZ I` WLYPVKPJ Audit Committee (MAC) and Board Audit Committee reporting to the respective Board committees. (BAC). P 7YVWLYN\PKLSPULZMVYOPYPUNHUK[LYTPUH[PVUVMZ[Hќ f. Management Audit Committee (MAC) formal training programmes, annual and semi- ;OL4(*^OPJOPZJOHPYLKI`*OPLM6WLYH[PVUZ6ѝJLY annual performance appraisals and other relevant (COO), comprises the senior management members WYVJLK\YLZ HYL PU WSHJL MVY Z[Hќ JVTWL[LUJ` from a broad range of business and support units. KL]LSVWTLU[ HUK [YHPUPUN [V LUHISL [OLPY LќLJ[P]L The Committee meets monthly to deliberate the discharge of duties and responsibilities. ÄUKPUNZ VM H\KP[ HUK PU]LZ[PNH[PVU YLWVY[Z ;OL meeting also discusses the necessary actions to j. The Board’s oversight function is further enhanced resolve arising issues and enhancement of pertinent through delegated responsibilities in Several Board business processes and operations. Where required, Committees namely Board Risk Management representatives from the parties being audited are Committee, Board Credit Committee, Board requested to attend the meeting to enable more Information Technology Committee, Board detailed deliberation and expeditious resolution of Investment Committee, Nominating Committee the matter at hand. Minutes of the MAC meeting are and Remuneration Committee, all of which have tabled to the BAC together with the audit reports. formalised terms of reference. These Committees The actions required by the BAC are followed up by have the authority to examine all matters within the MAC. their scope and report to the Board with their recommendations. g. Board Audit Committee (BAC). The BAC meets on a monthly basis to review k. The Fraud Management and Whistleblowing Policy ÄUKPUNZOPNOSPNO[LKI`[OL0U[LYUHS(\KP[+LWHY[TLU[ which were approved by the Board provides an the external auditors, regulatory authorities and avenue for employees to report actual or suspected management, and to evaluate the adequacy and malpractice, misconduct or violations of the Bank’s LќLJ[P]LULZZ VM [OL )HUR»Z YPZR THUHNLTLU[ HUK policies and regulations in lieu of an elaborate internal control systems. The committee also reporting process. Outcome of the investigation is conducts a review of the internal audit functions with presented by the Chief Internal Auditor to the BAC for particular emphasis on the scope of audit, quality of subsequent actions. internal audit and independence of the audit function relative to other functions within the Bank. The minutes of the BAC meetings are tabled to the Board on a monthly basis. Agrobank Annual Report 2013 85 ^ƚĂƚĞŵĞŶƚŽĨ^ŚĂƌŝĂŚ'ŽǀĞƌŶĂŶĐĞ Shariah Committee SC Roles and Responsibilities In 2013, Agrobank accepted the appointment of two (2) Among the SC’s roles, based on the Shariah Compliance new members to its Shariah Committee (SC). The latest Manual are as follows: list of SC Members until December 2013 is as follows: ;OL :* PZ YLX\PYLK [V L_HTPUL :OHYPHO PZZ\LZ Shariah Committee Status Position diligently before making any decision as the SC’s Re-appointed effective Dr Mohamed Fairooz bin Abdul Khir Chairman 1 June 2013 decisions, views and opinions are binding on the Re-appointed effective Prof Madya Dr Atikullah Hj Abdullah Member 1 June 2013 Bank. Re-appointed effective Dr Muhammad Yamin Ismail Member 1 June 2013 Appointed effective En. Ismail bin Mahayudin Member 1 June 2013 *VVYKPUH[L Z\WLY]PZVY` [HZRZ VU TH[[LYZ SPURLK Appointed effective Dr. Mohamad Sabri Zakaria Member to Shariah in the Bank’s business operations and 1 June 2013 Prof. Dr. Saiful Azhar Prof. Dr. Saiful Azhar Rosly Member activities. Supervision must be executed via the two Rosly as SC were ended on 31st March 2013 functions of Shariah Review and Shariah Audit. From En. Mohd Zakhiri Md. Member Nor as SC were ended the regular Shariah Review report and Shariah Audit Mohd Zakhiri bin Md. Nor on 31st March 2013 observation reports, the SC is able to identify issues Hishamuddin Ab Hamid - Secretary which require attention as well as propose remedial responses where appropriate. 7YLZLU[ Z\ѝJPLU[ PUMVYTH[PVU PU [OL )HUR»Z HUU\HS ÄUHUJPHS YLWVY[ [V JVTWS` ^P[O [OL +L]LSVWTLU[ Financial Institutions Act 2002. 86 Agrobank Annual Report 2013 7YV]PKLHK]PJL[V[OL)VHYKVM+PYLJ[VYZVUTH[[LYZ ;V WYV]PKL ^YP[[LU :OHYPHO VWPUPVUZ VU TH[[LYZ related to Shariah. referred to the SC and to assist the SAC on any matter referred by the Bank. ;V LUKVYZL WVSPJPLZ WYVJLK\YLZ HUK YLSH[LK documents including manuals, forms, proposals ;VOVSKRUV^SLKNLZOHYPUN^VYRPUNWHWLYWYVWVZHS and contracts, agreements, advertising, marketing, sessions upon the Bank’s request especially illustration, sales brochures and other literature those related to new products that require BNM’s related to Islamic Banking, including the Shariah approval. Compliance Manual. The SC convened a total of sixteen (16) times throughout ;VPTTLKPH[LS`YLWVY[[V[OL)6+\WVUKPZJV]LY`VM the year 2013. The attendance of SC members is as Shariah non-compliant operations and to propose follows: remedial steps. ;VYLWVY[[V)HUR5LNHYH4HSH`ZPH)54^OLU[OL Bank does not or fails to execute remedial measures to deal with Shariah non-compliance in banking operations. ;VHZZPZ[YLSH[LKWHY[PLZZ\JOHZ)HURVѝJLYZSLNHS counsel, auditors or consultants who require advice on Shariah matters. ;VHK]PZL[OL)HUR[VJVUZ\S[[OL:OHYPHO(K]PZVY` Council (SAC) of Bank Negara Malaysia (BNM) on any Shariah matters which have not been resolved or endorsed by the SC. Agrobank Annual Report 2013 87 ^ƚĂƚĞŵĞŶƚŽĨŽŵƉůŝĂŶĐĞ The Board of Directors is committed towards ensuring To accomplish this mission, we have recruited a group strong governance and compliance in order to create a of dedicated professionals who possess a wide range solid foundation as well as to enhance the compliance of experience. Such initiatives are used to continually function to all by maintaining public trust through an PTWYV]L [OL Z`Z[LT HUK WYVJLZZLZ PU [OL LќVY[ [V L[OPJHSLќLJ[P]LHUKJVZ[LѝJPLU[VYNHUPZH[PVU comply with the laws, rules, regulations, policies and best practices; which are key components that make up The Compliance Department aims to maintain the our compliance framework. highest operating standards at all times by undertaking regular reviews of procedures and controls to ensure the We pledge our importance and dedication by reviewing Bank complies with the relevant laws, regulations and and monitoring of various activities like business standards of good practice. processes, brainstorming, regulatory-liaison and one stop information centre. The outcome will then be further Unilaterally, we strive to respond and contribute our disseminated through all appropriate channels as they will ideology by collaborating between industry groups become a testament of whether the Bank has complied through consultation papers and discussion initiated by with the principles as stipulated by governance. regulators and Government. The focus of these activities PZ[VKL]LSVW[OLMYHTL^VYRMVYHZ[HISLÄUHUJPHSZLJ[VY and sustainable global economy. 88 Agrobank Annual Report 2013 2013 AUDITED FINANCIAL STATEMENTS OUR PERFORMANCE Someone asked, “O Rasulullah, which gain is best?” He said, “A man’s work by his hand, and every honest business.” Ahmad OUR PERFORMANCE Directors’ Report Company No: 811810-U BANK PERTANIAN MALAYSIA BERHAD (Incorporated in Malaysia) DIRECTORS’ REPORT ;OLKPYLJ[VYZOH]LWSLHZ\YLPUWYLZLU[PUN[OLPYYLWVY[[VNL[OLY^P[O[OLH\KP[LKÄUHUJPHSZ[H[LTLU[ZVM[OL)HUR MVY[OLÄUHUJPHS`LHYLUKLK+LJLTILY PRINCIPAL ACTIVITIES ;OLWYPUJPWHSHJ[P]P[PLZVM[OL)HURHYLIHURPUNÄUHUJPUNPU]LZ[TLU[HUKZLY]PJPUNHZWYV]PKLK\UKLY[OL)HUR 7LY[HUPHU4HSH`ZPH)LYOHK(J[ ;OLYLOH]LILLUUVZPNUPÄJHU[JOHUNLZPU[OLUH[\YLVM[OLWYPUJPWHSHJ[P]P[PLZVM[OL)HURK\YPUN[OLÄUHUJPHS `LHY RESULTS RM ‘000 7YVÄ[ILMVYL[H_HUKaHRH[ ;H_ AHRH[ 5L[WYVÄ[MVY[OL`LHY 239,756 ;OLYL^LYLUVTH[LYPHS[YHUZMLYZ[VVYMYVTYLZLY]LZVYWYV]PZPVUZK\YPUN[OLÄUHUJPHS`LHYV[OLY[OHUHZKPZJSVZLK PU[OLÄUHUJPHSZ[H[LTLU[Z 0U [OL VWPUPVU VM [OL KPYLJ[VYZ [OL YLZ\S[Z VM [OL VWLYH[PVUZ VM [OL )HUR K\YPUN [OL ÄUHUJPHS `LHY ^LYL UV[ Z\IZ[HU[PHSS`HќLJ[LKI`HU`P[LT[YHUZHJ[PVUVYL]LU[VMHTH[LYPHSHUK\U\Z\HSUH[\YL 92 Agrobank Annual Report 2013 DIVIDENDS :PUJL[OLLUKVM[OLWYL]PV\ZÄUHUJPHS`LHY[OLHTV\U[VMKP]PKLUKZWHPKVYWYVWVZLKI`[OL)HURHYLHZMVSSV^Z! RM ‘000 0UYLZWLJ[VM[OLMPUHUJPHS`LHYLUKLK+LJLTILYHMPUHSKP]PKLUKVMZLU SLZZ [H_VUVYKPUHY`ZOHYLZKLJSHYLKVU1\ULHUK WHPKVU 1\UL 0UYLZWLJ[VM[OLÄUHUJPHS`LHYLUKLK+LJLTILYHUPU[LYPTKP]PKLUKVMZLU SLZZ [H_VUVYKPUHY`ZOHYLZKLJSHYLKVU :LW[LTILYHUK WHPKVU6J[VILY 31,500 ([[OLMVY[OJVTPUN(UU\HS.LULYHS4LL[PUNHÄUHSZPUNSL[PLYKP]PKLUKPUYLZWLJ[VM[OLJ\YYLU[ÄUHUJPHS`LHYLUKLK +LJLTILYVM ZLUVUVYKPUHY`ZOHYLZVM94LHJOHTV\U[PUN[VKP]PKLUKWH`HISL VM94 ^PSSILWYVWVZLKMVYZOHYLOVSKLY»ZHWWYV]HS ;OL ÄUHUJPHS Z[H[LTLU[Z MVY [OL J\YYLU[ ÄUHUJPHS `LHY KV UV[ YLÅLJ[ [OPZ WYVWVZLK KP]PKLUK :\JO KP]PKLUK PM HWWYV]LKI`[OLZOHYLOVSKLY^PSSILHJJV\U[LKMVYPULX\P[`HZHUHWWYVWYPH[PVUVMYL[HPULKLHYUPUNZPU[OLÄUHUJPHS `LHYLUKPUN+LJLTILY ISSUE OF SHARES AND DEBENTURES ;OL)HUROHZUV[PZZ\LKHU`UL^ZOHYLZVYKLILU[\YLZK\YPUN[OLÄUHUJPHS`LHY SHARE OPTIONS 5VVW[PVUZOH]LILLUNYHU[LKI`[OL)HUR[VHU`WHY[`K\YPUN[OLÄUHUJPHS`LHY[V[HRL\W\UPZZ\LKZOHYLZVM[OL )HUR 5VZOHYLZOH]LILLUPZZ\LKK\YPUN[OLÄUHUJPHS`LHYI`]PY[\LVM[OLL_LYJPZLVMHU`VW[PVU[V[HRL\W\UPZZ\LKZOHYLZ VM[OL)HUR(ZH[[OLLUKVM[OLÄUHUJPHS`LHY[OLYL^LYLUV\UPZZ\LKZOHYLZVM[OL)HUR\UKLYVW[PVUZ Agrobank Annual Report 2013 93 DIRECTORS ;OLMVSSV^PUNKPYLJ[VYZZLY]LKVU[OL)VHYKVM[OL)HURZPUJL[OLKH[LVM[OLSHZ[YLWVY[! @)ON;HU:YP-HPaHO4VOK;HOPY*OHPYTHU @)ON+H[V»>HU4VOK-HKaTPIPU>HU6[OTHU 7YLZPKLU[*OPLM,_LJ\[P]L6ѝJLY @)ON+H[\R+Y:HOHYHU/HQP(UHUN Puan Rashidah Mohd Sies @)ON+H[\R1VOHY*OL4H[ ,UJPR5N*OPO2H`L ,UJPR4K/PSTP+H[\R/HQP4K5VVY @)ON+H[V»*OL4VOK/HZOPT(IK\SSHO @)ON+H[V»:HSLO\KKPU:HPKPU HWWVPU[LKVU4H` @)ON+H[PU9\aHPUH>HU/HUPќ YLZPNULKVU -LIY\HY` DIRECTORS’ INTERESTS 5VULVM[OLKPYLJ[VYZPUVѝJLH[[OLLUKVM[OLÄUHUJPHS`LHYOLSKZOHYLZVYOHKILULÄJPHSPU[LYLZ[PU[OLZOHYLZ VM[OL)HURK\YPUNHUKH[[OLLUKVM[OLÄUHUJPHS`LHY 94 Agrobank Annual Report 2013 DIRECTORS’ BENEFITS ;OLYL^LYLUVHYYHUNLTLU[ZK\YPUNHUKH[[OLLUKVM[OLÄUHUJPHS`LHY^OPJOOHK[OLVIQLJ[P]LVMLUHISPUNKPYLJ[VYZ VM[OL)HUR[VHJX\PYLILULÄ[ZI`TLHUZVM[OLHJX\PZP[PVUVMZOHYLZPUVYKLILU[\YLZVM[OL)HURVYHU`V[OLY JVYWVYH[LIVK` :PUJL[OLLUKVM[OLWYL]PV\ZÄUHUJPHS`LHYUVKPYLJ[VYOHZYLJLP]LKVYILJVTLLU[P[SLK[VYLJLP]LHILULÄ[V[OLY[OHU HILULÄ[PUJS\KLKPU[OLHNNYLNH[LHTV\U[VMLTVS\TLU[ZYLJLP]LKVYK\LHUKYLJLP]HISLI`[OLKPYLJ[VYZMYVT[OL )HURHUKYLSH[LKJVYWVYH[PVUZVY[OLÄ_LKZHSHY`VMHM\SS[PTLLTWSV`LLVM[OL)HURHZKPZJSVZLKPU5V[L[V[OL ÄUHUJPHSZ[H[LTLU[ZI`YLHZVUVMHJVU[YHJ[THKLI`[OL)HURVYHYLSH[LKJVYWVYH[PVU^P[O[OLKPYLJ[VYVY^P[OHÄYT VM^OPJOOLPZHTLTILYVY^P[OHJVTWHU`PU^OPJOOLOHZHZ\IZ[HU[PHSÄUHUJPHSPU[LYLZ[ OTHER STATUTORY INFORMATION H )LMVYL[OLZ[H[LTLU[VMÄUHUJPHSWVZP[PVUHUKZ[H[LTLU[VMJVTWYLOLUZP]LPUJVTLVM[OL)HUR^LYLTHKLV\[ [OLKPYLJ[VYZ[VVRYLHZVUHISLZ[LWZ! 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P [OL HTV\U[ ^YP[[LU Vќ MVY IHK KLI[Z VY [OL HTV\U[ VM [OL HSSV^HUJL MVY KV\I[M\S KLI[Z PU [OL ÄUHUJPHS Z[H[LTLU[ZVM[OL)HURPUHKLX\H[L[VHU`Z\IZ[HU[PHSL_[LU["HUK PP [OL]HS\LZH[[YPI\[LK[VJ\YYLU[HZZL[ZPU[OLÄUHUJPHSZ[H[LTLU[ZVM[OL)HURTPZSLHKPUN Agrobank Annual Report 2013 95 OTHER STATUTORY INFORMATION (cont’d) J ([[OLKH[LVM[OPZYLWVY[[OLKPYLJ[VYZHYLUV[H^HYLVMHU`JPYJ\TZ[HUJLZ^OPJOOH]LHYPZLU^OPJO^V\SK YLUKLY HKOLYLUJL [V [OL L_PZ[PUN TL[OVK VM ]HS\H[PVU VM HZZL[Z VY SPHIPSP[PLZ VM [OL )HUR TPZSLHKPUN VY PUHWWYVWYPH[L K ([ [OL KH[L VM [OPZ YLWVY[ [OL KPYLJ[VYZ HYL UV[ H^HYL VM HU` JPYJ\TZ[HUJLZ UV[ V[OLY^PZL KLHS[ ^P[O PU [OPZYLWVY[VY[OLÄUHUJPHSZ[H[LTLU[ZVM[OL)HUR^OPJO^V\SKYLUKLYHU`HTV\U[Z[H[LKPU[OLÄUHUJPHS Z[H[LTLU[ZTPZSLHKPUN L (ZH[[OLKH[LVM[OPZYLWVY[[OLYLKVLZUV[L_PZ[! 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H ;OLJVU[YHJ[Z[YHUZHJ[PVUZHUKKLHSPUNZLU[LYLKPU[VI`)HUR7LY[HUPHU4HSH`ZPH)LYOHKK\YPUN[OLÄUHUJPHS `LHYLUKLK+LJLTILY[OH[^LOH]LYL]PL^LKHYLPUJVTWSPHUJL^P[O:OHYPHO-VYJHZLZ^OPJOOH]L ILLUPKLU[PÄLKHZUV[M\SÄSSPUNJLY[HPUYLX\PYLTLU[Z\UKLY:OHYPHOWYPUJPWSLZHUKJVUJLW[ZHZL_WSHPULKILSV^ YLTLKPHSTLHZ\YLZOH]LILLUPKLU[PÄLKHUKVUNVPUNYLJ[PÄJH[PVULќVY[ZVU[OLHќLJ[LKHJJV\U[ZHYLJ\YYLU[S` ILPUNPTWSLTLU[LK0U[OLL]LU[[OLHќLJ[LKHJJV\U[ZJHUUV[ILYLJ[PÄLK[OLPUJVTL^PSSUV[ILYLJVNUPZLK HZ[OL)HUR»ZPUJVTL I 9LTLKPHSTLHZ\YLZOH]LILLU[HRLUMVY[OLPUZ\ѝJPLU[KPZ[YPI\[PVUVMWYVÄ[MVY4\KOHYHIHOIHZLKHJJV\U[Z I` WYV]PKPUN [OL \UKPZ[YPI\[LK HTV\U[ [V HќLJ[LK J\Z[VTLYZ (Z Z\JO [OL WYV]PZPVU OHZ PTWHJ[LK [OL )HUR»ZWLYMVYTHUJLHUKYL[HPULKLHYUPUNZHZKPZJSVZLKPUUV[L[V[OLHJJV\U[Z J ;OLHSSVJH[PVUVMWYVÄ[HUKSVZZYLSH[PUN[VPU]LZ[TLU[HJJV\U[ZJVUMVYT[V[OLIHZPZ[OH[OHKILLUHWWYV]LK I`\ZPUHJJVYKHUJL^P[O:OHYPHO K (SSLHYUPUNZ[OH[OH]LILLUYLHSPZLKMYVTZV\YJLZVYI`TLHUZWYVOPIP[LK\UKLY:OHYPHO^PSSILJOHUULSSLK MVYJOHYP[HISLW\YWVZLZ L ;OLJHSJ\SH[PVUHUKKPZ[YPI\[PVUVMaHRH[PZPUJVTWSPHUJL^P[O:OHYPHO M >L OH]L HSZV YL]PL^LK [OL L_LYJPZL VM JVU]LYZPVU [V -\SS -SLKNLK 0ZSHTPJ )HURPUN ¸--0)¹ HUK ^L HYL ZH[PZÄLK[OH[[OLWYVJLZZPZPUSPUL^P[O:OHYPHO >L+Y4VOHTLK-HPYVVa(IK\S2OPYHUK+Y4VOHTHK:HIYPAHRHYPHILPUN[^VVM[OLTLTILYZVM[OL:OHYPHO *VTTP[[LLVM)HUR7LY[HUPHU4HSH`ZPH)LYOHK[V[OLILZ[VMV\YRUV^SLKNLKVOLYLI`JVUÄYTVUILOHSMVM [OLTLTILYZVM[OL:OHYPHO*VTTP[[LL[OH[[OL0ZSHTPJIHURPUNVWLYH[PVUZVM)HUR7LY[HUPHU4HSH`ZPH)LYOHK MVY[OLÄUHUJPHS`LHYLUKLK+LJLTILYOH]LILLUJVUK\J[LKPUJVUMVYTP[`^P[O:OHYPHO DR. MOHAMED FAIROOZ ABDUL KHIR DR. MOHAMAD SABRI ZAKARIA Chairman of the Committee Member of the Committee 2\HSH3\TW\Y4HSH`ZPH 26 June 2014 Agrobank Annual Report 2013 101 Independent Auditors’ Report to the Member of Bank Pertanian Malaysia Berhad REPORT ON THE FINANCIAL STATEMENTS >LOH]LH\KP[LK[OLÄUHUJPHSZ[H[LTLU[ZVM)HUR7LY[HUPHU4HSH`ZPH)LYOHK^OPJOJVTWYPZL[OLZ[H[LTLU[VM ÄUHUJPHSWVZP[PVUHZH[+LJLTILYHUK[OLZ[H[LTLU[VMJVTWYLOLUZP]LPUJVTLZ[H[LTLU[VMJOHUNLZ PULX\P[`HUKZ[H[LTLU[VMJHZOÅV^ZMVY[OL`LHY[OLULUKLKHUKHZ\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZ HUKV[OLYL_WSHUH[VY`PUMVYTH[PVUHZZL[V\[VUWHNLZ[V +PYLJ[VYZ»YLZWVUZPIPSP[`MVY[OLÄUHUJPHSZ[H[LTLU[Z ;OLKPYLJ[VYZVM[OL)HURHYLYLZWVUZPISLMVY[OLWYLWHYH[PVUVMÄUHUJPHSZ[H[LTLU[ZZVHZ[VNP]LH[Y\LHUKMHPY ]PL^PUHJJVYKHUJL^P[O4HSH`ZPHU-PUHUJPHS9LWVY[PUN:[HUKHYKZ0U[LYUH[PVUHS-PUHUJPHS9LWVY[PUN:[HUKHYKZ HUK[OLYLX\PYLTLU[ZVM[OL*VTWHUPLZ(J[ PU4HSH`ZPH;OLKPYLJ[VYZHYLYLZWVUZPISLMVYZ\JOPU[LYUHS JVU[YVSHZ[OLKPYLJ[VYZKL[LYTPULPZULJLZZHY`[VLUHISL[OLWYLWHYH[PVUVMÄUHUJPHSZ[H[LTLU[Z[OH[HYLMYLL MYVTTH[LYPHSTPZZ[H[LTLU[^OL[OLYK\L[VMYH\KVYLYYVY Auditors’ responsibility 6\YYLZWVUZPIPSP[`PZ[VL_WYLZZHUVWPUPVUVU[OLZLÄUHUJPHSZ[H[LTLU[ZIHZLKVUV\YH\KP[>LJVUK\J[LKV\Y H\KP[PUHJJVYKHUJL^P[OHWWYV]LKZ[HUKHYKZVUH\KP[PUNPU4HSH`ZPH;OVZLZ[HUKHYKZYLX\PYL[OH[^LJVTWS` ^P[OL[OPJHSYLX\PYLTLU[ZHUKWSHUHUKWLYMVYT[OLH\KP[[VVI[HPUYLHZVUHISLHZZ\YHUJLHIV\[^OL[OLY[OL ÄUHUJPHSZ[H[LTLU[ZHYLMYLLMYVTTH[LYPHSTPZZ[H[LTLU[ (UH\KP[PU]VS]LZWLYMVYTPUNWYVJLK\YLZ[VVI[HPUH\KP[L]PKLUJLHIV\[[OLHTV\U[ZHUKKPZJSVZ\YLZPU[OL ÄUHUJPHSZ[H[LTLU[Z;OLWYVJLK\YLZZLSLJ[LKKLWLUKVUV\YQ\KNLTLU[PUJS\KPUN[OLHZZLZZTLU[VMYPZRZ VM TH[LYPHS TPZZ[H[LTLU[ VM [OL ÄUHUJPHS Z[H[LTLU[Z ^OL[OLY K\L [V MYH\K VY LYYVY 0U THRPUN [OVZL YPZR HZZLZZTLU[Z^LJVUZPKLYPU[LYUHSJVU[YVSYLSL]HU[[V[OLLU[P[`»ZWYLWHYH[PVUVMÄUHUJPHSZ[H[LTLU[Z[OH[NP]L H[Y\LHUKMHPY]PL^PUVYKLY[VKLZPNUH\KP[WYVJLK\YLZ[OH[HYLHWWYVWYPH[LPU[OLJPYJ\TZ[HUJLZI\[UV[MVY [OLW\YWVZLVML_WYLZZPUNHUVWPUPVUVU[OLLќLJ[P]LULZZVM[OLLU[P[`»ZPU[LYUHSJVU[YVS(UH\KP[HSZVPUJS\KLZ L]HS\H[PUN[OLHWWYVWYPH[LULZZVMHJJV\U[PUNWVSPJPLZ\ZLKHUK[OLYLHZVUHISLULZZVMHJJV\U[PUNLZ[PTH[LZ THKLI`[OLKPYLJ[VYZHZ^LSSHZL]HS\H[PUN[OLV]LYHSSWYLZLU[H[PVUVM[OLÄUHUJPHSZ[H[LTLU[Z >LILSPL]L[OH[[OLH\KP[L]PKLUJL^LOH]LVI[HPULKPZZ\ѝJPLU[HUKHWWYVWYPH[L[VWYV]PKLHIHZPZMVYV\YH\KP[ VWPUPVU 102 Agrobank Annual Report 2013 Opinion 0UV\YVWPUPVU[OLÄUHUJPHSZ[H[LTLU[ZNP]LH[Y\LHUKMHPY]PL^VM[OLÄUHUJPHSWVZP[PVUVM[OL)HURHZH[ +LJLTILYHUKVMP[ZÄUHUJPHSWLYMVYTHUJLHUKJHZOÅV^ZMVY[OL`LHY[OLULUKLKPUHJJVYKHUJL^P[O 4HSH`ZPHU-PUHUJPHS9LWVY[PUN:[HUKHYKZ0U[LYUH[PVUHS-PUHUJPHS9LWVY[PUN:[HUKHYKZHUK[OLYLX\PYLTLU[ZVM[OL *VTWHUPLZ(J[ PU4HSH`ZPH Report on other legal and regulatory requirements 0UHJJVYKHUJL^P[O[OLYLX\PYLTLU[ZVM[OL*VTWHUPLZ(J[ PU4HSH`ZPH^LHSZVYLWVY[[OH[PUV\YVWPUPVU [OLHJJV\U[PUNHUKV[OLYYLJVYKZHUK[OLYLNPZ[LYZYLX\PYLKI`[OL(J[[VILRLW[I`[OL)HUROH]LILLUWYVWLYS` RLW[PUHJJVYKHUJL^P[O[OLWYV]PZPVUZVM[OL(J[ Other matters ;OPZYLWVY[PZTHKLZVSLS`[V[OLTLTILYVM[OL)HURHZHIVK`PUHJJVYKHUJL^P[O:LJ[PVU VM[OL*VTWHUPLZ (J[ PU4HSH`ZPHHUKMVYUVV[OLYW\YWVZL>LKVUV[HZZ\TLYLZWVUZPIPSP[`[VHU`V[OLYWLYZVUMVY[OL JVU[LU[VM[OPZYLWVY[ Ernst & Young Nik Rahmat Kamarulzaman bin Nik Ab. Rahman AF: 0039 No. 1759/02/16(J) Chartered Accountants Chartered Accountant 2\HSH3\TW\Y4HSH`ZPH 26 June 2014 Agrobank Annual Report 2013 103 Statement of Comprehensive Income for the Financial Year Ended 31 December 2013 2013 2012 Note RM’000 RM’000 Restated 0U[LYLZ[PUJVTL 5 117,784 181,272 0U[LYLZ[L_WLUZL 6 (36,713) (87,408) 5L[PU[LYLZ[PUJVTL 81,071 93,864 0UJVTLMYVT0ZSHTPJIHURPUNI\ZPULZZ 35(a) 423,825 424,363 504,896 518,227 5VUPU[LYLZ[PUJVTL! -LLHUKV[OLYVWLYH[PUNPUJVTL 7(a) 7,862 18,378 0U]LZ[TLU[PUJVTL 7(b) 185,132 241,630 5L[PUJVTL 697,890 778,235 *VTWLUZH[PVUL_WLUZLZ - (18,021) 6]LYOLHKL_WLUZLZ 8 (359,634) (350,257) 6WLYH[PUNWYVÄ[ 338,256 409,957 .V]LYUTLU[NYHU[Z 9 20,806 32,433 5L[VWLYH[PUNWYVÄ[ 359,062 442,390 (SSV^HUJLMVYPTWHPYTLU[ VUSVHUZÄUHUJPUNHUKHK]HUJLZ 10 (35,835) (87,290) (SSV^HUJLMVY^YP[LIHJRVMPTWHPYTLU[VU PU]LZ[TLU[ZLJ\YP[PLZ 11 (3,918) 263 7YVÄ[ILMVYL[H_HUKaHRH[ 319,309 355,363 ;H_L_WLUZL 12 (77,727) (7,349) AHRH[ 13 (1,826) (2,082) 5L[WYVÄ[MVY[OL`LHY 239,756 345,932 104 Agrobank Annual Report 2013 2013 2012 RM’000 RM’000 Restated 5L[WYVÄ[MVY[OL`LHY 239,756 345,932 Other comprehensive (loss)/income to be YLJSHZZPÄLK[VWYVÄ[VYSVZZPUZ\IZLX\LU[WLYPVKZ 5L[V[OLYJVTWYLOLUZP]LSVZZ[VIL YLJSHZZPÄLK[VWYVÄ[VYSVZZPUZ\IZLX\LU[WLYPVKZ (184,129) (166,224) ;V[HSJVTWYLOLUZP]LPUJVTLMVY[OL`LHY 55,627 179,708 ;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VM[OLÄUHUJPHSZ[H[LTLU[Z Agrobank Annual Report 2013 105 ^ƚĂƚĞŵĞŶƚŽĨ&ŝŶĂŶĐŝĂůWŽƐŝƟŽŶĂƐĂƚϯϭĞĐĞŵďĞƌϮϬϭϯ 31 December 31 December 1 January 2013 2012 2012 Note RM’000 RM’000 RM’000 Restated Restated ASSETS *HZOHUKZOVY[[LYTM\UKZ 14 1,273,397 1,827,012 3,413,040 +LWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ 15 60,000 - 20,000 0U]LZ[TLU[ZLJ\YP[PLZ 16 3,588,054 3,459,062 2,884,941 3VHUZÄUHUJPUNHUKHK]HUJLZ 17 5,850,154 5,867,648 5,456,358 Other assets 18 96,201 95,920 116,247 7YVWLY[`WSHU[HUKLX\PWTLU[ 19 195,394 190,856 196,930 0U[HUNPISLHZZL[Z 20 26,941 20,898 23,556 +LMLYYLK[H_HZZL[Z 21 48,572 - - TOTAL ASSETS 11,138,713 11,461,396 12,111,072 LIABILITIES AND EQUITY Liabilities +LWVZP[ZMYVTJ\Z[VTLYZ 22 6,594,646 6,863,216 7,546,544 6[OLYSPHIPSP[PLZ 6[OLYWH`HISLZHUKHJJY\HSZ 23(a) 326,935 324,599 231,835 7HKK`JYLKP[NYH[\P[`ZJOLTL 23(b) 2,225 2,185 2,249 +LMLYYLK[H_SPHIPSP[PLZ 21 - 13,788 61,080 3VHUZJOLTLM\UK 24 1,555,347 1,639,626 1,775,404 .V]LYUTLU[NYHU[Z Operating 25 35,402 41,872 54,877 3H\UJOPUN 26 17,269 21,598 26,016 Funds 27 257,500 229,250 245,013 Total Liabilities 8,789,324 9,136,134 9,943,018 106 Agrobank Annual Report 2013 31 December 31 December 1 January 2013 2012 2012 Note RM’000 RM’000 RM’000 Restated Restated Equity Share capital 28 1,000,000 1,000,000 1,000,000 Reserves 29 1,349,389 1,325,262 1,168,054 Total Equity 2,349,389 2,325,262 2,168,054 TOTAL LIABILITIES AND EQUITY 11,138,713 11,461,396 12,111,072 ;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VM[OLÄUHUJPHSZ[H[LTLU[Z Agrobank Annual Report 2013 107 Statement of Changes in Equity for the Financial Year Ended 31 December 2013 Non-distributable reserves Distributable reserves Investment Share Statutory revaluation Retained capital reserves reserve earnings Total RM’000 RM’000RM’000 RM’000 RM’000 As at 1 January 2013, as previously stated 1,000,000 487,109 321,719 659,565 2,468,393 7YPVY`LHYHKQ\Z[TLU[ZUV[L - - - (143,131) (143,131) As at 1 January 2013, as restated 1,000,000 487,109 321,719 516,434 2,325,262 5L[WYVÄ[MVY[OL`LHY - - - 239,756 239,756 6[OLYJVTWYLOLUZP]LSVZZMVY[OL`LHY - - (184,129) - (184,129) ;V[HSJVTWYLOLUZP]LSVZZPUJVTLMVY[OL`LHY - - (184,129) 239,756 55,627 +P]PKLUKZWHPKUV[L - - - (31,500) (31,500) At 31 December 2013 1,000,000 487,109 137,590 724,690 2,349,389 Non-distributable reserves Distributable reserves Investment Share Statutory revaluation Retained capital reserves reserve earnings Total RM’000 RM’000RM’000 RM’000 RM’000 As at 1 January 2012, as previously stated 1,000,000 487,109 487,943 250,932 2,225,984 7YPVY`LHYHKQ\Z[TLU[ZUV[L - - - (57,930) (57,930) As at 1 January 2012, as restated 1,000,000 487,109 487,943 193,002 2,168,054 5L[WYVÄ[MVY[OL`LHY - - - 345,932 345,932 6[OLYJVTWYLOLUZP]LSVZZMVY[OL`LHY - - (166,224) - (166,224) ;V[HSJVTWYLOLUZP]LSVZZPUJVTLMVY[OL`LHY - - (166,224) 345,932 179,708 +P]PKLUKZWHPKUV[L - - - (22,500) (22,500) At 31 December 2012 1,000,000 487,109 321,719 516,434 2,325,262 ;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VM[OLÄUHUJPHSZ[H[LTLU[Z 108 Agrobank Annual Report 2013 Statement of Cash Flow for the Financial Year Ended 31 December 2013 2013 2012 RM’000 RM’000 Restated CASH FLOW FROM OPERATING ACTIVITIES 7YVÄ[ILMVYL[H_HUKaHRH[ 319,309 355,363 Adjustments for: (SSV^HUJLMVYPTWHPYTLU[VUSVHUZÄUHUJPUNHUKHK]HUJLZUL[ 116,735 173,006 (SSV^HUJLMVYPTWHPYTLU[VUPU]LZ[TLU[ZLJ\YP[PLZ 3,918 (263) +LWYLJPH[PVUVMWYVWLY[`WSHU[HUKLX\PWTLU[ 27,358 26,999 (TVY[PZH[PVUVMJVTW\[LYZVM[^HYL 12,433 13,628 0U[LYLZ[L_WLUZLWYVÄ[JOHYNLKVU SVHUZÄUHUJPUNZJOLTLM\UK 215 5,757 >YP[LVќVMWYVWLY[`WSHU[HUKLX\PWTLU[ 1,589 396 >YP[LVќVMPU[HUNPISLHZZL[Z - 93 .HPUVUKPZWVZHSVMPU]LZ[TLU[ZLJ\YP[PLZ (174,192) (230,722) +P]PKLUKZMYVTPU]LZ[TLU[ZLJ\YP[PLZ (10,940) (10,908) .V]LYUTLU[.YHU[ZYLSLHZLHZPUJVTL (10,007) (15,010) (TVY[PZH[PVUVM! :WLJPHS-\UKMVY;LYLUNNHU\-PZOLY`¸+2:7¹ (700) (661) .V]LYUTLU[.YHU[Z6WLYH[PUN (6,470) (12,788) .V]LYUTLU[.YHU[Z3H\UJOPUN (3,343) (3,316) 2SHUDWLQJSURðWEHIRUHZRUNLQJFDSLWDOFKDQJHV 275,905 301,574 *OHUNLPUSVHUZÄUHUJPUNHUKHK]HUJLZ (97,718) (403,336) Change in other assets (281) 20,320 *OHUNLPUKLWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ (60,000) 20,000 *OHUNLPUKLWVZP[ZMYVTJ\Z[VTLYZ (268,570) (863,377) *OHUNLPUV[OLYWH`HISLZHUKHJJY\HSZ (115) 79,188 *OHUNLPUWHKK`JYLKP[NYH[\P[`ZJOLTL 40 (64) *OHUNLPUKLMLYYLK[H_SPHIPSP[PLZ (62,032) (54,560) Cash used in operating activities (212,771) (900,255) ;H_WHPK (76,564) (74) AHRH[WHPK (3,432) (2,854) Net cash used in operating activities (292,767) (903,183) Agrobank Annual Report 2013 109 Statement of Cash Flow for the Financial Year Ended 31 December 2013 (cont’d) 2013 2012 RM’000 RM’000 Restated CASH FLOW FROM INVESTING ACTIVITIES 0UJYLHZLPUPU]LZ[TLU[ZLJ\YP[PLZ (337,552) (1,806,816) 7\YJOHZLVMWYVWLY[`WSHU[HUKLX\PWTLU[ (33,485) (21,321) 7\YJOHZLVMJVTW\[LYZVM[^HYL (18,476) (11,063) 7YVJLLKZMYVTKPZWVZHSVMPU]LZ[TLU[ZLJ\YP[PLZ 194,705 1,310,801 +P]PKLUKZYLJLP]LKMYVTPU]LZ[TLU[ZLJ\YP[PLZ 10,940 10,908 Net cash used in investing activities (183,868) (517,491) CASH FLOW FROM FINANCING ACTIVITIES 0U[LYLZ[WYVÄ[WHPKVUSVHUZJOLTLM\UKHUK6,*- (7,261) (4,909) 7YVJLLKZMYVT! 3VHUMYVT6,*- 6,426 - -\UK-VY-VVK¸-¹ 152,334 652 -VVK7YVK\J[PVU*YLKP[:JOLTL¸:274¹ - 250 Micro Enterprise Fund 15,759 14,493 )\TPW\[LYH*VTTLYJPHSHUK0UK\Z[YPHS *VTT\UP[`:JOLTL/<)¸477)/<)¹ 40,000 - 9LWH`TLU[ZVMSVHUZJOLTLM\UK (243,855) (147,968) -VYLPNUL_JOHUNLKPќLYLUJLZ (7,897) (4,053) .V]LYUTLU[NYHU[Z3H\UJOPUN\[PSPZLK (986) (1,102) .V]LYUTLU[NYHU[Z6WLYH[PUN\[PSPZLK - (217) +P]PKLUKZWHPK (31,500) (22,500) 5L[JHZO\ZLKPUÄUHUJPUNHJ[P]P[PLZ (76,980) (165,354) 110 Agrobank Annual Report 2013 2013 2012 RM’000 RM’000 Restated NET DECREASE IN CASH AND CASH EQUIVALENTS (553,615) (1,586,028) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 1,827,012 3,413,040 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 1,273,397 1,827,012 CASH AND CASH EQUIVALENTS CONSIST OF: Cash and short term funds (Note 14) 1,273,397 1,827,012 ;OLHJJVTWHU`PUNUV[LZMVYTHUPU[LNYHSWHY[VM[OLÄUHUJPHSZ[H[LTLU[Z Agrobank Annual Report 2013 111 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 1. CORPORATE INFORMATION )HUR7LY[HUPHU4HSH`ZPH)LYOHKº»[OL)HUR»»PZHW\ISPJSPTP[LKSPHIPSP[`JVTWHU`PUJVYWVYH[LKHUKKVTPJPSLKPU 4HSH`ZPH ;OLWYPUJPWHSHJ[P]P[PLZVM[OL)HURHYLIHURPUNÄUHUJPUNPU]LZ[TLU[HUKYLSH[LKZLY]PJLZHZWYV]PKLK\UKLY[OL )HUR7LY[HUPHU4HSH`ZPH)LYOHK(J[ ;OLYLOH]LILLUUVZPNUPÄJHU[JOHUNLZPU[OLUH[\YLVM[OLWYPUJPWHSHJ[P]P[PLZVM[OL)HURK\YPUN[OLÄUHUJPHS `LHY ;OLYLNPZ[LYLKVѝJLPZH[3L]LS)HUN\UHU(NYVIHUR3LIVO7HZHY)LZHY 2\HSH3\TW\Y4HSH`ZPH ;OLWYPUJPWHSWSHJLVMI\ZPULZZVM[OL)HURPZH[)HUN\UHU(NYVIHUR3LIVO7HZHY)LZHY 2\HSH3\TW\Y 4HSH`ZPH ;OLÄUHUJPHSZ[H[LTLU[ZOH]LILLUHWWYV]LKHUKH\[OVYPZLKMVYPZZ\HUJLI`[OL)VHYKVM+PYLJ[VYZPUHJJVYKHUJL ^P[OHYLZVS\[PVUKH[LK 1\UL 2. BASIS OF PREPARATION ;OLÄUHUJPHSZ[H[LTLU[ZVM[OL)HUROH]LILLUWYLWHYLK\UKLY[OLOPZ[VYPJHSJVZ[JVU]LU[PVU\USLZZV[OLY^PZL Z[H[LKPU[OLHJJV\U[PUNWVSPJPLZ :[H[LTLU[VMJVTWSPHUJL ;OLÄUHUJPHSZ[H[LTLU[ZVM[OL)HUROH]LILLUWYLWHYLKPUHJJVYKHUJL^P[O4HSH`ZPHU-PUHUJPHS9LWVY[PUN :[HUKHYKZ¸4-9:Z¹0U[LYUH[PVUHS-PUHUJPHS9LWVY[PUN:[HUKHYKZHUK[OLYLX\PYLTLU[ZVM[OL*VTWHUPLZ (J[ PU4HSH`ZPH 2.2 Functional and presentation currency ;OLÄUHUJPHSZ[H[LTLU[ZHYLWYLZLU[LKPU9PUNNP[4HSH`ZPH94^OPJOPZ[OL)HUR»ZM\UJ[PVUHSJ\YYLUJ` HUKHSS]HS\LZHYLYV\UKLK[V[OLULHYLZ[[OV\ZHUK94»L_JLW[^OLUV[OLY^PZLPUKPJH[LK 112 Agrobank Annual Report 2013 3. 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SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (b)Revenue recognition (cont’d) +P]PKLUKZHYLYLJVNUPZLK^OLU[OLYPNO[[VYLJLP]LWH`TLU[PZLZ[HISPZOLK0U[OLÄUHUJPHSZ[H[LTLU[Z [OPZPZ^OLU[OLKP]PKLUKZHYLYLJLP]LKVYKLLTLKYLJLP]LK 0UJVTLMYVTYLU[HSPZYLJVNUPZLKVUHUHJJY\HSIHZPZPUHJJVYKHUJL^P[O[OL[LYTZVM[OLHNYLLTLU[ (c)Government grants .V]LYUTLU[NYHU[ZHYLYLJVNUPZLKH[[OLPYMHPY]HS\L^OLYL[OLYLPZYLHZVUHISLHZZ\YHUJL[OH[[OL NYHU[^PSSILYLJLP]LKHUKHSSJVUKP[PVUZH[[HJOLK^PSSILTL[.YHU[ZMYVT[OL.V]LYUTLU[VM4HSH`ZPH JVUZPZ[VM[OLMVSSV^PUN! P .V]LYUTLU[NYHU[Z6WLYH[PUNUV[L PP .V]LYUTLU[NYHU[Z3H\UJOPUNUV[L 3H\UJOPUNNYHU[ZYLJLP]LKMVYJHWP[HSL_WLUKP[\YLHYLYLJVNUPZLKHZKLMLYYLKJHWP[HSNYHU[PU[OL Z[H[LTLU[VMÄUHUJPHSWVZP[PVU;OLNYHU[ZHYLHTVY[PZLK[VWYVÄ[VYSVZZVUHZ`Z[LTH[PJIHZPZ V]LY[OL\ZLM\SSPMLVM[OLHZZL[Z^OLYLHZ[OLSH\UJOPUNNYHU[ZMVYKL]LSVWTLU[L_WLUKP[\YLPZ KLK\J[LKMYVT[OLSH\UJOPUNNYHU[Z\WVU\[PSPZH[PVU 114 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (c)Government grants (cont’d) PPP .V]LYUTLU[NYHU[Z-\UKZUV[L ;OLZLM\UKZHYLYLJLP]LK[VWYV]PKLÄUHUJPUN[VLSPNPISLJ\Z[VTLYZHUK\[PSPZLHNHPUZ[JYLKP[ SVZZLZHUKJOHYNLZHYPZPUNMYVT[OLZLÄUHUJPUN(U`JYLKP[SVZZVYJOHYNLZHZHYLZ\S[VM[OL ÄUHUJPUNILPUNKLMH\S[LKHYLYLJVNUPZLKHUK\[PSPZLKHNHPUZ[[OLNYHU[Z (d)Financial assets and liabilities 0UP[PHSYLJVNUP[PVUHUKZ\IZLX\LU[TLHZ\YLTLU[ -PUHUJPHSPUZ[Y\TLU[ZHYLJSHZZPÄLKPU[V[OLMVSSV^PUNJH[LNVYPLZSVHUZHUKYLJLP]HISLZÄUHUJPHS PU]LZ[TLU[Z/;4HUKÄUHUJPHSPU]LZ[TLU[Z(-: 4HUHNLTLU[KL[LYTPULZ[OLJSHZZPÄJH[PVUVMÄUHUJPHSPUZ[Y\TLU[ZH[PUP[PHSYLJVNUP[PVU P 3VHUZHUKYLJLP]HISLZ 3VHUZHUKYLJLP]HISLZHYLUVUKLYP]H[P]LMPUHUJPHSHZZL[Z^P[OMP_LKVYKL[LYTPUHISL WH`TLU[Z[OH[HYLUV[X\V[LKPUHUHJ[P]LTHYRL[-PUHUJPHSHZZL[ZJSHZZPÄLKPU[OPZJH[LNVY` PUJS\KLJHZOHUKIHSHUJLZ^P[OIHURZHUKSVHUZÄUHUJPUNHUKHK]HUJLZ;OLZLÄUHUJPHS HZZL[ZHYLPUP[PHSS`YLJVNUPZLKH[MHPY]HS\LPUJS\KPUNKPYLJ[HUKPUJYLTLU[HS[YHUZHJ[PVUJVZ[Z HUKZ\IZLX\LU[S`TLHZ\YLKH[HTVY[PZLKJVZ[\ZPUN[OLLќLJ[P]LPU[LYLZ[TL[OVK0U[LYLZ[ PUJVTLVUSVHUZHUKYLJLP]HISLZPZYLJVNUPZLKHZ¸0U[LYLZ[PUJVTL¹PUWYVÄ[VYSVZZ Agrobank Annual Report 2013 115 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) 0UP[PHSYLJVNUP[PVUHUKZ\IZLX\LU[TLHZ\YLTLU[JVU[»K P 3VHUZHUKYLJLP]HISLZJVU[»K 0TWHPYTLU[SVZZLZVUSVHUZÄUHUJPUNHUKHK]HUJLZHYLYLJVNUPZLKPUWYVÄ[VYSVZZHZ¸(SSV^HUJL MVYPTWHPYTLU[VUSVHUZÄUHUJPUNHUKHK]HUJLZ¹ PP /LSK[VTH[\YP[`¸/;4¹ -PUHUJPHSPU]LZ[TLU[Z/;4HYLUVUKLYP]H[P]LÄUHUJPHSHZZL[Z^P[OÄ_LKVYKL[LYTPUHISLWH`TLU[Z [OH[THUHNLTLU[OHZ[OLPU[LU[PVUHUKHIPSP[`[VOVSK[VTH[\YP[`;OLZLÄUHUJPHSHZZL[ZHYLPUP[PHSS` YLJVNUPZLKH[MHPY]HS\LPUJS\KPUNKPYLJ[HUKPUJYLTLU[HS[YHUZHJ[PVUJVZ[ZHUKZ\IZLX\LU[S` TLHZ\YLKH[HTVY[PZLKJVZ[\ZPUN[OLLќLJ[P]LPU[LYLZ[TL[OVK0U[LYLZ[VUPU]LZ[TLU[Z/;4PZ PUJS\KLKPU¸0U[LYLZ[0UJVTL¹PUWYVÄ[VYSVZZ0TWHPYTLU[SVZZLZPMHU`HYLYLJVNUPZLKPUWYVÄ[ VYSVZZHZ¸(SSV^HUJLMVYPTWHPYTLU[VUPU]LZ[TLU[ZLJ\YP[PLZ¹9LN\SHY^H`W\YJOHZLZHUKZHSLZ VMMPUHUJPHSPU]LZ[TLU[Z/;4HYLYLJVNUPZLKH[ZL[[SLTLU[KH[L0M[OL)HUR^HZ[VZLSSVY YLJSHZZPM`TVYL[OHUHUPUZPNUPÄJHU[HTV\U[VMÄUHUJPHSPU]LZ[TLU[Z/;4ILMVYLTH[\YP[`[OL LU[PYLJH[LNVY`^V\SKIL[HPU[LKHUKILYLJSHZZPÄLK[V(-:-\Y[OLYTVYL[OL)HUR^V\SKIL WYVOPIP[LKMYVTJSHZZPM`PUN[OVZLÄUHUJPHSHZZL[ZHZ/;4MVY[OLMVSSV^PUN[^V`LHYZ 116 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) 0UP[PHSYLJVNUP[PVUHUKZ\IZLX\LU[TLHZ\YLTLU[JVU[»K PPP(]HPSHISLMVYZHSL¸(-:¹ -PUHUJPHSPU]LZ[TLU[Z(-:HYLUVUKLYP]H[P]LÄUHUJPHSHZZL[Z[OH[HYLKLZPNUH[LKHZ(-:HUK HYLUV[JH[LNVYPZLKPU[VHU`VM[OLV[OLYJH[LNVYPLZHIV]L-PUHUJPHSPU]LZ[TLU[Z(-:PUJS\KL ÄUHUJPHSHZZL[Z[OH[HYLPU[LUKLK[VILOLSKMVYHUPUKLÄUP[LWLYPVKVM[PTL^OPJOTH`ILZVSK PUYLZWVUZL[VSPX\PKP[`ULLKZVYJOHUNLZPUTHYRL[JVUKP[PVUZ;OLZLÄUHUJPHSHZZL[ZHYL PUP[PHSS`YLJVNUPZLKH[MHPY]HS\LPUJS\KPUNKPYLJ[HUKPUJYLTLU[HS[YHUZHJ[PVUJVZ[ZHUK Z\IZLX\LU[S`TLHZ\YLKH[MHPY]HS\L .HPUZHUKSVZZLZHYPZPUNMYVTJOHUNLZPUMHPY]HS\LHYLYLJVNUPZLKPU[OLZ[H[LTLU[VM JVTWYLOLUZP]LPUJVTL\UKLYV[OLYJVTWYLOLUZP]LPUJVTLL_JLW[MVYPTWHPYTLU[SVZZLZ ^OPJOHYLYLJVNUPZLKPUWYVÄ[VYSVZZ0MHUPU]LZ[TLU[(-:PZKL[LYTPULK[VILPTWHPYLK [OLJ\T\SH[P]LNHPUVYSVZZWYL]PV\ZS`YLJVNUPZLKPULX\P[`PZYLJVNUPZLKPUWYVMP[VYSVZZ 3PRL^PZL\WVUKPZWVZHSVMPU]LZ[TLU[Z(-:[OLJ\T\SH[P]LMHPY]HS\LNHPUVYSVZZYLJVNUPZLK PULX\P[`PZHSZV[YHUZMLYYLK[VWYVÄ[VYSVZZ0U[LYLZ[PUJVTLVUÄUHUJPHSPU]LZ[TLU[Z(-:PZ PUJS\KLKHZPU[LYLZ[PUJVTLPUWYVÄ[VYSVZZ+P]PKLUKZVU(-:LX\P[`PUZ[Y\TLU[YLJVNUPZLKPU WYVÄ[VYSVZZ^OLU[OL)HUR»ZYPNO[[VYLJLP]LWH`TLU[PZLZ[HISPZOLK9LN\SHY^H`W\YJOHZLZ HUKZHSLZVMÄUHUJPHSPU]LZ[TLU[Z(-:HYLYLJVNUPZLKH[ZL[[SLTLU[KH[L 0U]LZ[TLU[ZPU\UX\V[LKLX\P[`PUZ[Y\TLU[Z^OPJOHYLJSHZZPÄLKHZ(-:HUK^OVZLMHPY]HS\L JHUUV[ILYLSPHIS`TLHZ\YLKHYLTLHZ\YLKH[JVZ[;OLZLPU]LZ[TLU[ZHYLHZZLZZLKMVY PTWHPYTLU[H[LHJOYLWVY[PUNWLYPVK Agrobank Annual Report 2013 117 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) 0UP[PHSYLJVNUP[PVUHUKZ\IZLX\LU[TLHZ\YLTLU[JVU[»K P]-PUHUJPHSSPHIPSP[PLZ -PUHUJPHSSPHIPSP[PLZHYLPUP[PHSS`YLJVNUPZLKH[[OLMHPY]HS\LVMJVUZPKLYH[PVUYLJLP]LKSLZZKPYLJ[S` H[[YPI\[HISL[YHUZHJ[PVUJVZ[Z:\IZLX\LU[[VPUP[PHSYLJVNUP[PVUÄUHUJPHSSPHIPSP[PLZHYLTLHZ\YLK H[HTVY[PZLKJVZ[-PUHUJPHSSPHIPSP[PLZTLHZ\YLKH[HTVY[PZLKJVZ[PUJS\KLKLWVZP[ZMYVT J\Z[VTLYZ +LYLJVNUP[PVU -PUHUJPHSHZZL[ZHYLKLYLJVNUPZLK^OLU[OLJVU[YHJ[\HSYPNO[Z[VYLJLP]L[OLJHZOÅV^ZMYVT [OLZLHZZL[ZOH]LJLHZLK[VL_PZ[VY^OLU[OLYPNO[Z[VYLJLP]LM\Y[OLYJHZOÅV^ZMYVT[OLHZZL[Z OH]LILLU[YHUZMLYYLK[VH[OPYKWHY[`HUKZ\IZ[HU[PHSS`HSS[OLYPZRZHUKYL^HYKZVMV^ULYZOPWVM [OLHZZL[ZHYLHSZV[YHUZMLYYLK-PUHUJPHSSPHIPSP[PLZHYLKLYLJVNUPZLK^OLU[OL`HYLYLKLLTLKVY L_[PUN\PZOLK +L[LYTPUH[PVUVMMHPY]HS\L ;OL)HURTLHZ\YLZÄUHUJPHSPUZ[Y\TLU[ZZ\JOHZÄUHUJPHSPU]LZ[TLU[Z(-:H[MHPY]HS\LH[LHJO Z[H[LTLU[VMÄUHUJPHSWVZP[PVUKH[L -HPY]HS\LPZ[OLWYPJL[OH[^V\SKILYLJLP]LK[VZLSSHUHZZL[VYWHPK[V[YHUZMLYHSPHIPSP[`PUHU VYKLYS`[YHUZHJ[PVUIL[^LLUTHYRL[WHY[PJPWHU[ZH[[OLTLHZ\YLTLU[KH[L;OLMHPY]HS\L TLHZ\YLTLU[PZIHZLKVU[OLWYLZ\TW[PVU[OH[[OL[YHUZHJ[PVU[VZLSS[OLHZZL[VY[YHUZMLY[OL SPHIPSP[`[HRLZWSHJLLP[OLY! 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SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) +L[LYTPUH[PVUVMMHPY]HS\LJVU[»K ;OLWYPUJPWHSVY[OLTVZ[HK]HU[HNLV\ZTHYRL[T\Z[ILHJJLZZPISL[V[OL)HUR ;OLMHPY]HS\LVMHUHZZL[VYHSPHIPSP[`PZTLHZ\YLK\ZPUN[OLHZZ\TW[PVUZ[OH[THYRL[WHY[PJPWHU[Z ^V\SK\ZL^OLUWYPJPUN[OLHZZL[VYSPHIPSP[`HZZ\TPUN[OH[THYRL[WHY[PJPWHU[ZHJ[PU[OLPY LJVUVTPJILZ[PU[LYLZ[ (MHPY]HS\LTLHZ\YLTLU[VMHUVUÄUHUJPHSHZZL[[HRLZPU[VHJJV\U[HTHYRL[WHY[PJPWHU[»ZHIPSP[` [VNLULYH[LLJVUVTPJILULÄ[ZI`\ZPUN[OLHZZL[PUP[ZOPNOLZ[HUKILZ[\ZLVYI`ZLSSPUNP[[V HUV[OLYTHYRL[WHY[PJPWHU[[OH[^V\SK\ZL[OLHZZL[PUP[ZOPNOLZ[HUKILZ[\ZL ;OL)HUR\ZLZ]HS\H[PVU[LJOUPX\LZ[OH[HYLHWWYVWYPH[LPU[OLJPYJ\TZ[HUJLZHUKMVY^OPJO Z\ѝJPLU[KH[HHYLH]HPSHISL[VTLHZ\YLMHPY]HS\LTH_PTPZPUN[OL\ZLVMYLSL]HU[VIZLY]HISLPUW\[Z HUKTPUPTPZPUN[OL\ZLVM\UVIZLY]HISLPUW\[Z (SSHZZL[ZHUKSPHIPSP[PLZMVY^OPJOMHPY]HS\LPZTLHZ\YLKVYKPZJSVZLKPU[OLÄUHUJPHSZ[H[LTLU[ZHYL JH[LNVYPZLK^P[OPU[OLMHPY]HS\LOPLYHYJO`KLZJYPILKHZMVSSV^ZIHZLKVU[OLSV^LZ[SL]LSPUW\[ [OH[PZZPNUPÄJHU[[V[OLMHPY]HS\LTLHZ\YLTLU[HZH^OVSL! 3L]LS8\V[LK\UHKQ\Z[LKTHYRL[WYPJLZPUHJ[P]LTHYRL[ZMVYPKLU[PJHSHZZL[ZVYSPHIPSP[PLZ 3L]LS=HS\H[PVU[LJOUPX\LZMVY^OPJO[OLSV^LZ[SL]LSPUW\[[OH[PZZPNUPÄJHU[[V[OLMHPY]HS\L TLHZ\YLTLU[PZKPYLJ[S`VYPUKPYLJ[S`VIZLY]HISL 3L]LS=HS\H[PVU[LJOUPX\LZMVY^OPJO[OLSV^LZ[SL]LSPUW\[[OH[PZZPNUPÄJHU[[V[OLMHPY]HS\L TLHZ\YLTLU[PZ\UVIZLY]HISL Agrobank Annual Report 2013 119 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) +L[LYTPUH[PVUVMMHPY]HS\LJVU[»K -VYHZZL[ZHUKSPHIPSP[PLZ[OH[HYLYLJVNUPZLKPU[OLÄUHUJPHSZ[H[LTLU[ZVUHYLJ\YYPUNIHZPZ[OL )HURKL[LYTPULZ^OL[OLY[YHUZMLYZOH]LVJJ\YYLKIL[^LLUMHPY]HS\LOPLYHYJO`SL]LSZI`YLHZZLZZPUN JH[LNVYPZH[PVUIHZLKVU[OLSV^LZ[SL]LSPUW\[[OH[PZZPNUPÄJHU[[V[OLMHPY]HS\LTLHZ\YLTLU[HZH ^OVSLH[[OLLUKVMLHJOYLWVY[PUNWLYPVK -VY[OLW\YWVZLVMMHPY]HS\LKPZJSVZ\YL[OL)HUROHZKL[LYTPULKJSHZZLZVMHZZL[ZHUKSPHIPSP[PLZ VU[OLIHZPZVM[OLUH[\YLJOHYHJ[LYPZ[PJZHUKYPZRVM[OLHZZL[VYSPHIPSP[`HUK[OLSL]LSVM[OLMHPY ]HS\LOPLYHYJO`HZL_WSHPULKHIV]L 0TWHPYTLU[VMÄUHUJPHSHZZL[Z P 3VHUZÄUHUJPUNHUKHK]HUJLZ 3VHUZÄUHUJPUNHUKHK]HUJLZ¸SVHUZ¹VM[OL)HURHYLJSHZZPÄLKHZPTWHPYLK^OLU[OL`M\SÄS LP[OLYVM[OLMVSSV^PUNJYP[LYPH! 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SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) 0TWHPYTLU[VMÄUHUJPHSHZZL[ZJVU[»K P 3VHUZÄUHUJPUNHUKHK]HUJLZJVU[»K -VY[OLKL[LYTPUH[PVUVMPTWHPYTLU[VUSVHUZ[OL)HURJVUK\J[ZHZZLZZTLU[ZH[LHJO YLWVY[PUNWLYPVK^OL[OLY[OLYLPZHU`VIQLJ[P]LL]PKLUJL[OH[HSVHUVYHNYV\WVMSVHUZPZ PTWHPYLK(SVHUVYHNYV\WVMSVHUZPZPTWHPYLKHUKPTWHPYTLU[SVZZLZHYLYLJVNUPZLKVUS` PM[OLYLPZVIQLJ[P]LL]PKLUJLVMPTWHPYTLU[HZHYLZ\S[VMVULVYTVYLL]LU[Z[OH[OHZVJJ\YYLK HM[LY[OLPUP[PHSYLJVNUP[PVUVM[OLHZZL[PLHU¸PUJ\YYLKSVZZL]LU[¹HUK[OH[SVZZL]LU[OHZHU PTWHJ[VU[OLLZ[PTH[LKM\[\YLJHZOÅV^ZVM[OLSVHUVYNYV\WVMSVHUZ[OH[JHUILYLSPHIS` LZ[PTH[LK ;OLJYP[LYPH[OH[[OL)HUR\ZLZ[VKL[LYTPUL[OH[[OLYLPZVIQLJ[P]LL]PKLUJLVMHUPTWHPYTLU[ PUJS\KL! 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SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) 0TWHPYTLU[VMÄUHUJPHSHZZL[ZJVU[»K P 3VHUZÄUHUJPUNHUKHK]HUJLZJVU[»K ;OL)HURÄYZ[HZZLZZLZPUKP]PK\HSS`^OL[OLYVIQLJ[P]LL]PKLUJLVMPTWHPYTLU[L_PZ[ZMVYSVHUZ ^OPJOHYLPUKP]PK\HSS`ZPNUPÄJHU[0MP[PZKL[LYTPULK[OH[UVVIQLJ[P]LL]PKLUJLVMPTWHPYTLU[ L_PZ[ZMVYHUPUKP]PK\HSS`HZZLZZLKSVHU[OLSVHUPZ[OLUPUJS\KLKHZHWHY[VMJVSSLJ[P]LHZZLZZTLU[ 0M[OLYLPZVIQLJ[P]LL]PKLUJL[OH[HUPTWHPYTLU[SVZZOHZILLUPUJ\YYLK[OLHTV\U[VMSVZZPZ TLHZ\YLKHZ[OLKPќLYLUJLIL[^LLU[OLSVHU»ZJHYY`PUNHTV\U[HUK[OLWYLZLU[]HS\LVM[OL LZ[PTH[LKM\[\YLJHZOÅV^Z;OLJHYY`PUNHTV\U[VM[OLSVHUPZPTWHPYLK[OYV\NO[OL\ZLVMHU HSSV^HUJLHJJV\U[HUK[OLPTWHPYLKHTV\U[VMSVZZPZYLJVNUPZLKPUWYVÄ[VYSVZZ>OLYL HWWYVWYPH[L[OLJHSJ\SH[PVUVM[OLWYLZLU[]HS\LVMLZ[PTH[LKM\[\YLJHZOÅV^ZVMHJVSSH[LYHSPZLK SVHUYLÅLJ[Z[OLJHZOÅV^Z[OH[TH`YLZ\S[MYVTMVYLJSVZ\YLSLZZJVZ[ZMVYVI[HPUPUNHUKZLSSPUN [OLJVSSH[LYHS -VYJVSSLJ[P]LHZZLZZTLU[[OLUVUPTWHPYLKSVHUZHUKPTWHPYLKSVHUZ^OPJOHYLUV[PUKP]PK\HSS` ZPNUPÄJHU[HYLNYV\WLKVU[OLIHZPZVMOVTVNLUV\ZYPZRJOHYHJ[LYPZ[PJZ[OH[HYLPUKPJH[P]LVM [OLIVYYV^LYZ»HIPSP[`[VWH`HSSHTV\U[ZK\LHJJVYKPUN[V[OLJVU[YHJ[\HS[LYTZ;OLJVSSLJ[P]L PTWHPYTLU[PZJVTW\[LKI`T\S[PWS`PUN[OLL_WVZ\YL^P[O[OL7YVIHIPSP[`VM+LMH\S[¸7+¹HUK 3VZZ.P]LU+LMH\S[¸3.+¹;OL7+PZIHZLKVUTPNYH[PVUVYYLNYLZZPVUHUHS`ZPZHUK[OL3.+ PZKL[LYTPULKI`\ZPUN[OLJVSSH[LYHSZOVY[MHSSTL[OVK>OLYLHSVHUPZ\UJVSSLJ[PISLP[PZ^YP[[LU VќHNHPUZ[[OLYLSH[LKHSSV^HUJLMVYSVHUPTWHPYTLU[:\JOSVHUZHYLVUS`^YP[[LUVќHM[LY[OL ULJLZZHY`WYVJLK\YLZOH]LILLUJVTWSL[LKHUK[OLHTV\U[VM[OLSVZZOHZILLUKL[LYTPULK :\IZLX\LU[YLJV]LYPLZVM[OLHTV\U[ZWYL]PV\ZS`^YP[[LUVќHYLYLJVNUPZLKPUWYVÄ[VYSVZZ 122 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) 0TWHPYTLU[VMÄUHUJPHSHZZL[ZJVU[»K P 3VHUZÄUHUJPUNHUKHK]HUJLZJVU[»K >OLYLHSVHUZOV^ZL]PKLUJLVMJYLKP[^LHRULZZLZ[OL)HURTH`ZLLR[VYLULNV[PH[L[OL SVHUYH[OLY[OHU[V[HRLWVZZLZZPVUVMJVSSH[LYHS;OPZTH`PU]VS]LHUL_[LUZPVUVM[OLWH`TLU[ HYYHUNLTLU[Z]PHYLZJOLK\SPUNVY[OLYLULNV[PH[PVUVMUL^SVHU[LYTZHUKJVUKP[PVUZ]PH YLZ[Y\J[\YPUN4HUHNLTLU[TVUP[VYZ[OLYLULNV[PH[LKSVHU[VLUZ\YL[OH[HSS[OLYL]PZLK[LYTZ HYLTL[HUK[OH[[OLYLWH`TLU[ZHYLTHKLWYVTW[S`MVYHJVU[PU\V\ZWLYPVK>OLYLHUPTWHPYLK SVHUPZYLULNV[PH[LK[OLIVYYV^LYT\Z[HKOLYL[V[OLYL]PZLKHUKVYYLZ[Y\J[\YLKYLWH`TLU[ [LYTZMVYHJVU[PU\V\ZWLYPVKVMZP_TVU[OZMVYUVUYL[HPSSVHUZHUKTVU[OZMVYYL[HPSSVHUZ ILMVYL[OLSVHUPZJSHZZPÄLKHZUVUPTWHPYLK;OLZLSVHUZJVU[PU\L[VILZ\IQLJ[LK[VPUKP]PK\HS VYJVSSLJ[P]LPTWHPYTLU[HZZLZZTLU[ PP -PUHUJPHSPU]LZ[TLU[Z(-: ;OL)HURHZZLZZLZH[LHJOYLWVY[PUNWLYPVK^OL[OLY[OLYLPZVIQLJ[P]LL]PKLUJL[OH[HÄUHUJPHS PU]LZ[TLU[JSHZZPÄLKHZ(-:PZPTWHPYLK0U[OLJHZLVMX\V[LKLX\P[`PU]LZ[TLU[ZHZPNUPÄJHU[ VYWYVSVUNLKKLJSPULPU[OLMHPY]HS\LVM[OLZLJ\YP[`ILSV^P[ZJVZ[PZHSZVJVUZPKLYLKPU KL[LYTPUPUN^OL[OLYVIQLJ[P]LL]PKLUJLVMPTWHPYTLU[L_PZ[Z>OLYLZ\JOL]PKLUJLL_PZ[Z[OL J\T\SH[P]LSVZZTLHZ\YLKHZ[OLKPќLYLUJLIL[^LLU[OLHJX\PZP[PVUJVZ[HUK[OLJ\YYLU[MHPY ]HS\LSLZZHU`PTWHPYTLU[SVZZWYL]PV\ZS`YLJVNUPZLKPZYLTV]LKMYVTLX\P[`HUKYLJVNUPZLK PUWYVÄ[VYSVZZ-VY\UX\V[LKLX\P[`PU]LZ[TLU[Z^OPJOHYLTLHZ\YLKH[JVZ[[OLHTV\U[VM [OLPTWHPYTLU[SVZZPZTLHZ\YLKHZ[OLKPќLYLUJLIL[^LLU[OLJHYY`PUNHTV\U[VM[OLHZZL[ HUK[OLWYLZLU[]HS\LVMLZ[PTH[LKM\[\YLJHZOÅV^ZKPZJV\U[LKH[[OLJ\YYLU[THYRL[YH[LVM YL[\YUMVYHZPTPSHYÄUHUJPHSHZZL[ Agrobank Annual Report 2013 123 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (d)Financial assets and liabilities (cont’d) 0TWHPYTLU[VMÄUHUJPHSHZZL[ZJVU[»K PP -PUHUJPHSPU]LZ[TLU[Z(-:JVU[»K 0TWHPYTLU[SVZZLZVU(-:LX\P[`PU]LZ[TLU[ZHYLUV[YL]LYZLKPUWYVÄ[VYSVZZPU[OLZ\IZLX\LU[ WLYPVKZ0UJYLHZLPUMHPY]HS\LPMHU`Z\IZLX\LU[[VPTWHPYTLU[SVZZPZYLJVNUPZLKPUV[OLY JVTWYLOLUZP]LPUJVTL-VY(-:KLI[PU]LZ[TLU[ZPTWHPYTLU[SVZZLZHYLZ\IZLX\LU[S` YL]LYZLKPUWYVÄ[VYSVZZPMHUPUJYLHZLPU[OLMHPY]HS\LVM[OLPU]LZ[TLU[JHUILVIQLJ[P]LS` YLSH[LK[VHUL]LU[VJJ\YYPUNHM[LY[OLYLJVNUP[PVUVM[OLPTWHPYTLU[SVZZPUWYVÄ[HUKSVZZ PPP-PUHUJPHSPU]LZ[TLU[Z/;4 ;OL)HURHZZLZZLZH[LHJOYLWVY[PUNWLYPVK^OL[OLYVIQLJ[P]LL]PKLUJLVMPTWHPYTLU[VM ÄUHUJPHSPU]LZ[TLU[Z/;4L_PZ[ZHZHYLZ\S[VMVULVYTVYLSVZZL]LU[ZHUK[OH[SVZZL]LU[OHZ HUPTWHJ[VU[OLLZ[PTH[LKM\[\YLJHZOÅV^ZVM[OLÄUHUJPHSPU]LZ[TLU[VYNYV\WVMÄUHUJPHS PU]LZ[TLU[Z[OH[JHUILYLSPHIS`LZ[PTH[LK>OLYL[OLYLPZVIQLJ[P]LL]PKLUJLVMPTWHPYTLU[HU PTWHPYTLU[SVZZPZYLJVNUPZLKHZ[OLKPќLYLUJLIL[^LLU[OLHJX\PZP[PVUJVZ[HUK[OLWYLZLU[ ]HS\LVM[OLLZ[PTH[LKM\[\YLJHZOÅV^ZSLZZHU`PTWHPYTLU[SVZZWYL]PV\ZS`YLJVNUPZLK (e) Foreign currency P -\UJ[PVUHSJ\YYLUJ` 0[LTZ PUJS\KLK PU [OL ÄUHUJPHS Z[H[LTLU[Z HYL TLHZ\YLK \ZPUN [OL J\YYLUJ` VM [OL WYPTHY` LJVUVTPJ LU]PYVUTLU[ PU ^OPJO [OL )HUR VWLYH[LZ PL [OL M\UJ[PVUHS J\YYLUJ` ;OL ÄUHUJPHS Z[H[LTLU[Z VM [OL )HUR HYL WYLZLU[LK PU 94 ^OPJO PZ [OL )HUR»ZM\UJ[PVUHS HUK WYLZLU[H[PVU J\YYLUJ` 124 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (e)Foreign currency (cont’d) PP -VYLPNUJ\YYLUJ`[YHUZHJ[PVUZ 0UWYLWHYPUN[OLÄUHUJPHSZ[H[LTLU[ZVM[OL)HUR[YHUZHJ[PVUZPUJ\YYLUJPLZV[OLY[OHU[OL)HUR»Z M\UJ[PVUHSJ\YYLUJ`HYLYLJVYKLKH[[OLYH[LZVML_JOHUNLWYL]HPSPUNH[[OLKH[LZVM[OL[YHUZHJ[PVUZ ([LHJOYLWVY[PUNKH[LTVUL[HY`P[LTZKLUVTPUH[LKPUMVYLPNUJ\YYLUJPLZHYLYL[YHUZSH[LKH[[OL YH[LZWYL]HPSPUNH[[OLYLWVY[PUNKH[L5VUTVUL[HY`P[LTZJHYYPLKH[MHPY]HS\L[OH[HYLKLUVTPUH[LK PUMVYLPNUJ\YYLUJPLZHYLYL[YHUZSH[LKH[[OLYH[LZWYL]HPSPUNH[[OLKH[L^OLU[OLMHPY]HS\L^HZ KL[LYTPULK5VUTVUL[HY`P[LTZ[OH[HYLTLHZ\YLKPU[LYTZVMOPZ[VYPJHSJVZ[PUHMVYLPNUJ\YYLUJ` HYLUV[YL[YHUZSH[LK ,_JOHUNLKPќLYLUJLZHYPZPUNVU[OL[YHUZSH[PVUVMUVUTVUL[HY`P[LTZJHYYPLKH[MHPY]HS\LHYL PUJS\KLKPUWYVÄ[VYSVZZMVY[OLWLYPVKL_JLW[MVY[OLKPќLYLUJLZHYPZPUNVU[OL[YHUZSH[PVUVMUVU TVUL[HY`P[LTZPUYLZWLJ[VM^OPJONHPUZVYSVZZLZHYLYLJVNUPZLKKPYLJ[S`PULX\P[`,_JOHUNL KPќLYLUJLZHYPZPUNMYVTZ\JOUVUTVUL[HY`P[LTZHYLHSZVYLJVNUPZLKKPYLJ[S`PULX\P[` M 0UJVTL[H_ P *\YYLU[[H_ *\YYLU[[H_HZZL[ZHUKSPHIPSP[PLZHYLTLHZ\YLKH[[OLHTV\U[L_WLJ[LK[VILYLJV]LYLKMYVTVY WHPK[V[OL[H_H[PVUH\[OVYP[PLZ;OL[H_YH[LZHUK[H_SH^Z\ZLK[VJVTW\[L[OLHTV\U[HYL[OVZL [OH[HYLLUHJ[LKVYZ\IZ[HU[P]LS`LUHJ[LKI`[OLYLWVY[PUNKH[L *\YYLU[[H_LZHYLYLJVNUPZLKPUWYVÄ[VYSVZZL_JLW[[V[OLL_[LU[[OH[[OL[H_YLSH[LZ[VP[LTZ YLJVNUPZLKV\[ZPKLWYVÄ[VYSVZZLP[OLYPUV[OLYJVTWYLOLUZP]LPUJVTLVYKPYLJ[S`PULX\P[` Agrobank Annual Report 2013 125 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K N 0UJVTL[H_JVU[»K PP +LMLYYLK[H_ +LMLYYLK[H_PZWYV]PKLKMVY\ZPUN[OL¸SPHIPSP[`¹TL[OVKVU[LTWVYHY`KPMMLYLUJLZHZVM[OL YLWVY[PUNWLYPVKIL[^LLU[OL[H_IHZLZVMHZZL[ZHUKSPHIPSP[PLZHUK[OLPYJHYY`PUNHTV\U[ZPU[OL ÄUHUJPHSZ[H[LTLU[Z+LMLYYLK[H_SPHIPSP[PLZHYLYLJVNUPZLKMVYHSS[H_HISL[LTWVYHY`KPќLYLUJLZ ^OPSLKLMLYYLK[H_HZZL[ZHYLYLJVNUPZLKMVYHSSKLK\J[PISL[LTWVYHY`KPќLYLUJLZ\U\ZLK[H_SVZZLZ HUK\U\ZLK[H_JYLKP[Z[V[OLL_[LU[[OH[P[PZWYVIHISL[OH[M\[\YL[H_HISLWYVÄ[Z^PSSILH]HPSHISL HNHPUZ[^OPJO[OLKLK\J[PISL[LTWVYHY`KPќLYLUJLZ\U\ZLK[H_SVZZLZHUK\U\ZLK[H_ JYLKP[ZJHUIL\[PSPZLK +LMLYYLK[H_PZUV[YLJVNUPZLKPM[OL[LTWVYHY`KPќLYLUJLZHYPZPUNMYVTNVVK^PSSVYMYVT[OLPUP[PHS YLJVNUP[PVUVMHUHZZL[VYHSPHIPSP[`PUH[YHUZHJ[PVU^OPJOPZUV[HI\ZPULZZJVTIPUH[PVUHUKH[[OL [PTLVM[OL[YHUZHJ[PVUHќLJ[ZULP[OLY[OLHJJV\U[PUNWYVÄ[UVY[H_HISLWYVÄ[ ;OLJHYY`PUNHTV\U[VMKLMLYYLK[H_HZZL[ZPMHU`PZYL]PL^LKH[LHJOYLWVY[PUNWLYPVKHUKYLK\JLK [V[OLL_[LU[[OH[P[PZUVSVUNLYWYVIHISL[OH[Z\ѝJPLU[M\[\YL[H_HISLWYVÄ[Z^PSSILH]HPSHISL[V HSSV^HSSVYWHY[VM[OLHZZL[[VILYLJV]LYLK +LMLYYLK[H_PZTLHZ\YLKH[[OL[H_YH[LZ[OH[HYLL_WLJ[LK[VHWWS`PU[OLWLYPVK^OLU[OLHZZL[ PZYLHSPZLKVY[OLSPHIPSP[`PZZL[[SLKIHZLKVU[H_YH[LZ[OH[OH]LILLULUHJ[LKVYZ\IZ[HU[P]LS` LUHJ[LKI`[OLYLWVY[PUNWLYPVK+LMLYYLK[H_PZYLJVNUPZLKPUWYVÄ[VYSVZZL_JLW[^OLUP[HYPZLZ MYVTH[YHUZHJ[PVU^OPJOPZYLJVNUPZLKKPYLJ[S`PULX\P[` 126 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K M 0UJVTL[H_JVU[»K PP +LMLYYLK[H_JVU[»K +LMLYYLK[H_HZZL[ZHUKSPHIPSP[PLZHYLVќZL[^OLU[OLYLPZHSLNHSS`LUMVYJLHISLYPNO[[VVќZL[J\YYLU[ [H_HZZL[ZHNHPUZ[J\YYLU[[H_SPHIPSP[PLZHUK^OLU[OL`YLSH[L[VPUJVTL[H_LZSL]PLKI`[OLZHTL [H_H[PVUH\[OVYP[`HUK[OL)HURPU[LUKZ[VZL[[SLP[ZJ\YYLU[[H_HZZL[ZHUKSPHIPSP[PLZVUHUL[IHZPZ N ,TWSV`LLZ»ILULÄ[ P :OVY[[LYTILULÄ[ >HNLZZHSHYPLZV[OLYÄ_LKYLT\ULYH[PVUHUKIVU\ZLZHYLYLJVNUPZLKHZL_WLUZLZPU[OL`LHY [OH[ZLY]PJLZOH]LILLUYLUKLYLKI`[OLLTWSV`LLZ:OVY[[LYTHJJ\T\SH[LKJVTWLUZH[LK HUU\HSSLH]LPZSPTP[LK[VKH`Z[OYV\NOV\[[OLZLY]PJL[LU\YLHUKPZYLJVNUPZLK^OLUZLY]PJL OHZILLUYLUKLYLK>P[O[OLHWWYV]HSVM[OLOLHKVMKLWHY[TLU[[OLHUU\HSSLH]LPZHSSV^LK[VIL JHYYPLKMVY^HYKMVYHTH_PT\TWLYPVKVM[^V`LHYZHM[LY^OPJOP[^PSSILMVYMLP[LKHUKUV JVTWLUZH[PVU^PSSILWHPK4LKPJHSSLH]LPZYLJVNUPZLK^OLU[OLHIZLUJLZVJJ\Y PP +LÄULKJVU[YPI\[PVUWSHU ;OL)HURPZYLX\PYLKI`SH^[VTHRLTVU[OS`JVU[YPI\[PVUZ[V[OL,TWSV`LLZ7YV]PKLU[-\UK¸,7-¹ H[JLY[HPUWYLZJYPILKYH[LZIHZLKVU[OLLTWSV`LLZ»ZHSHYPLZ:\JOJVU[YPI\[PVUZHYLYLJVNUPZLK HZL_WLUZLPUWYVÄ[VYSVZZHZPUJ\YYLK Agrobank Annual Report 2013 127 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K N ,TWSV`LLZ»ILULÄ[JVU[»K PPP 9L[PYLTLU[ILULÄ[ ,SPNPISLZ[HќHYLLU[P[SLKMVYHS\TWZ\TNYH[\P[`WH`TLU[\WVUH[[HPUTLU[VMUVYTHSYL[PYLTLU[ HNLVM `LHYZVYLHYS`YL[PYLTLU[HNLVM `LHYZMVYMLTHSLLTWSV`LLZHUK `LHYZMVYTHSL LTWSV`LLZ;OLNYH[\P[`WH`TLU[PZLX\P]HSLU[[V VM[OLPYSHZ[KYH^UZHSHY`T\S[PWSPLKI`[OL U\TILYVM`LHYZVMZLY]PJLHUKHSLH]LYLWSHJLTLU[ILULÄ[WH`TLU[LX\P]HSLU[[V[PTLZ[OLPY SHZ[KYH^UZHSHY` ;OLYL[PYLTLU[ILULÄ[SPHIPSP[`YLJVNUPZLKPU[OLZ[H[LTLU[VMÄUHUJPHSWVZP[PVUPZ[OLWYLZLU[]HS\L VM[OLKLÄULKILULÄ[VISPNH[PVUH[[OLLUKVM[OLYLWVY[PUNWLYPVK[VNL[OLY^P[OHKQ\Z[TLU[ZMVY HJ[\HYPHSNHPUZSVZZLZHUK\UYLJVNUPZLKWHZ[ZLY]PJLJVZ[YLÅLJ[PUNVUS`[OLU\TILYVM`LHYZVM ZLY]PJLJVTWSL[LK\W[V[OLZ[H[LTLU[VMÄUHUJPHSWVZP[PVUKH[L ;OLKLÄULKILULÄ[VISPNH[PVUJHSJ\SH[LK\ZPUN[OLWYVQLJ[LK\UP[JYLKP[TL[OVKPZKL[LYTPULKI` PUKLWLUKLU[HJ[\HYPLZI`KPZJV\U[PUN[OLLZ[PTH[LKM\[\YLJHZOV\[ÅV^Z\ZPUNTHYRL[`PLSKZH[ [OLLUKVM[OLYLWVY[PUNWLYPVKVU4HSH`ZPHU.V]LYUTLU[:LJ\YP[PLZ^OPJOOH]LJ\YYLUJ`HUK[LYTZ[V TH[\YP[`HWWYV_PTH[PUN[OL[LYTZVM[OLYLSH[LKSPHIPSP[` (J[\HYPHSNHPUZHUKSVZZLZHYPZPUNMYVTL_WLYPLUJLHKQ\Z[TLU[ZHUKJOHUNLZPUHJ[\HYPHSHZZ\TW[PVUZ HYLYLJVNUPZLKPUYL[HPULKLHYUPUNZPUV[OLYJVTWYLOLUZP]LPUJVTLPU[OLWLYPVKPU^OPJO[OL` HYPZL;OLHJ[\HYPHSNHPUZHUKSVZZLZHYLUV[Z\IZLX\LU[S`YLJSHZZPÄLK[VWYVÄ[VYSVZZPUZ\IZLX\LU[ WLYPVKZ 128 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K O 0TWHPYTLU[VMUVUÄUHUJPHSHZZL[Z ;OLJHYY`PUNHTV\U[VMWYVWLY[`WSHU[HUKLX\PWTLU[PZYL]PL^LK[VKL[LYTPUL^OL[OLY[OLYLPZHU` PUKPJH[PVUVMPTWHPYTLU[(UPTWHPYTLU[SVZZPZYLJVNUPZLKPUWYVÄ[VYSVZZ^OLUL]LY[OLJHYY`PUNHTV\U[ VMHUHZZL[L_JLLKZP[ZYLJV]LYHISLHTV\U[ ;OLYLJV]LYHISLHTV\U[PZ[OLOPNOLYVMMHPY]HS\LSLZZJVZ[[VZLSSHUK]HS\LPU\ZL0UHZZLZZPUN]HS\L PU\ZL[OLLZ[PTH[LKM\[\YLJHZOÅV^ZHYLKPZJV\U[LK[V[OLPYWYLZLU[]HS\L\ZPUNHWYL[H_KPZJV\U[ YH[L[OH[YLÅLJ[ZJ\YYLU[THYRL[HZZLZZTLU[VM[OL[PTL]HS\LVMTVUL`HUK[OLYPZRZWLJPÄJ[V[OLHZZL[ MVY^OPJO[OLLZ[PTH[LZVMM\[\YLJHZOÅV^OH]LUV[ILLUHKQ\Z[LK 0M[OLYLJV]LYHISLHTV\U[VMHUHZZL[PZLZ[PTH[LK[VILSLZZ[OHUP[ZJHYY`PUNHTV\U[[OLJHYY`PUNHTV\U[ VM[OLHZZL[PZYLK\JLK[VP[ZYLJV]LYHISLHTV\U[(UPTWHPYTLU[SVZZPZYLJVNUPZLKPTTLKPH[LS`PU WYVÄ[VYSVZZ (UPTWHPYTLU[SVZZPZVUS`YL]LYZLK[V[OLL_[LU[[OH[[OLHZZL[»ZJHYY`PUNHTV\U[KVLZUV[L_JLLK[OL JHYY`PUNHTV\U[[OH[^V\SKOH]LILLUKL[LYTPULKUL[VMHTVY[PZH[PVUVYKLWYLJPH[PVUPMUVPTWHPYTLU[ SVZZOHKILLUYLJVNUPZLK(YL]LYZHSVMHUPTWHPYTLU[SVZZPZYLJVNUPZLKPUWYVÄ[VYSVZZPTTLKPH[LS` (i) Property, plant and equipment 7YVWLY[`WSHU[HUKLX\PWTLU[PZZ[H[LKH[JVZ[SLZZHJJ\T\SH[LKKLWYLJPH[PVUHUKHJJ\T\SH[LK PTWHPYTLU[SVZZLZPMHU` -YLLOVSKSHUKHUK^VYRPUWYVNYLZZHYLUV[KLWYLJPH[LK 7YVWLY[`WSHU[HUKLX\PWTLU[HYLKLWYLJPH[LKVUHZ[YHPNO[SPULTL[OVKH[YH[LZJHSJ\SH[LK[V^YP[L Vќ[OLJVZ[SLZZYLZPK\HS]HS\LVM[OLHZZL[ZV]LY[OLPYLZ[PTH[LK\ZLM\SSP]LZ;OLHUU\HSKLWYLJPH[PVU YH[LZ\ZLKHYLHZMVSSV^Z! Agrobank Annual Report 2013 129 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (i)Property, plant and equipment (cont’d) )\PSKPUNZ 4V[VY]LOPJSLZ -\YUP[\YLHUKÄ_[\YLZ ,X\PWTLU[HUKVѝJLTHJOPULZ *VTW\[LYOHYK^HYL >OLYLWHY[ZVMP[LTZVMWYVWLY[`WSHU[HUKLX\PWTLU[OH]LKPќLYLU[\ZLM\SSP]LZ[OLJVZ[VM[OLP[LTZ PZHSSVJH[LKVUHYLHZVUHISLIHZPZHUKPZKLWYLJPH[LKZLWHYH[LS` 3LHZLOVSKSHUKPZKLWYLJPH[LKV]LY[OLWLYPVKVMP[ZYLZWLJ[P]LSLHZLZ ([LHJOYLWVY[PUNWLYPVK[OLYLZPK\HS]HS\LZHUK\ZLM\SSP]LZVM[OLWYVWLY[`WSHU[HUKLX\PWTLU[HYL YL]PL^LKHUK[OLLќLJ[VMHU`JOHUNLZPZYLJVNUPZLKWYVZWLJ[P]LS`.HPUHUKSVZZHYPZPUNMYVT[OL KPZWVZHSVMHUHZZL[PZKL[LYTPULKHZ[OLKPќLYLUJLIL[^LLU[OLUL[KPZWVZHSWYVJLLKZHUK[OLJHYY`PUN HTV\U[VM[OLHZZL[HUKPZYLJVNUPZLKPUWYVÄ[VYSVZZ *VZ[ZVMYLWHPYHUKTHPU[LUHUJLHYLJOHYNLK[VWYVÄ[VYSVZZPU[OL`LHYPU^OPJO[OLJVZ[ZHYLPUJ\YYLK (j) Intangible assets ;OLPU[HUNPISLHZZL[JVUZPZ[ZVMJVTW\[LYZVM[^HYL^OPJOHYLPUP[PHSS`YLJVYKLKH[JVZ[:\IZLX\LU[[V [OLYLJVNUP[PVUJVTW\[LYZVM[^HYLHYLTLHZ\YLKH[JVZ[SLZZHJJ\T\SH[LKHTVY[PZH[PVU(TVY[PZH[PVU PZJHSJ\SH[LK\ZPUN[OLZ[YHPNO[SPULTL[OVK[VHSSVJH[L[OLJVZ[VMJVTW\[LYZVM[^HYLV]LY[OLPY LZ[PTH[LK\ZLM\SSP]LZVM`LHYZ.HPUVYSVZZHYPZPUNMYVT[OLKPZWVZHSVM[OLHZZL[PZKL[LYTPULKHZ [OLKPMMLYLUJLIL[^LLU[OLUL[KPZWVZHSWYVJLLKZHUK[OLJHYY`PUNHTV\U[VM[OLHZZL[HUKPZ YLJVNUPZLKPU[OLWYVÄ[VYSVZZ 130 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (j)Intangible assets (cont’d) :\IZLX\LU[L_WLUKP[\YLVUHUPU[HUNPISLHZZL[HM[LYP[ZW\YJOHZLVYJVTWSL[PVUPZYLJVNUPZLKHZHU L_WLUZL^OLUP[PZPUJ\YYLK\USLZZP[PZWYVIHISL[OH[[OPZL_WLUKP[\YL^PSSLUHISL[OLHZZL[[VNLULYH[L M\[\YLLJVUVTPJILULÄ[ZPUL_JLZZVMP[ZVYPNPUHSS`HZZLZZLKZ[HUKHYKVMWLYMVYTHUJLHUK[OLL_WLUKP[\YL JHUILTLHZ\YLKHUKH[[YPI\[LK[V[OLHZZL[YLSPHIS` (k) Leases 3LHZLZHYLJSHZZPÄLKHZÄUHUJLSLHZLVYVWLYH[PUNSLHZL3LHZLZHYLJSHZZPÄLKHZÄUHUJLSLHZLZ^OLYL [OL)HURHZZ\TLZZ\IZ[HU[PHSS`HSS[OLYPZRZHUKYL^HYKZVMV^ULYZOPWVM[OLHZZL[Z(ZZL[Z\UKLY VWLYH[PUNSLHZLZHYLUV[YLJVNUPZLKPU[OLZ[H[LTLU[VMÄUHUJPHSWVZP[PVUHZ[OLYPZRZHUKYL^HYKZYLZ[ ^P[O[OLSLZZVY 3LHZLYLU[HSPZJOHYNLK[VWYVÄ[VYSVZZVU[OLZ[YHPNO[SPULIHZPZV]LY[OLSLHZL[LYT)LULÄ[YLJLP]LK VYYLJLP]HISLHZHUPUJLU[P]L[VLU[LYPU[VHUVWLYH[PUNSLHZLHYLYLJVNUPZLKVU[OLZ[YHPNO[SPULIHZPZ V]LY[OLSLHZL[LYT/V^L]LYJVU[PUNLU[YLU[HSZHYPZPUNMYVTVWLYH[PUNSLHZLZHYLYLJVNUPZLKHZHU L_WLUZLPUHTHUULYJVUZPZ[LU[^P[O[OLIHZPZVU^OPJO[OL`HYLKL[LYTPULK (l) Foreclosed properties -VYLJSVZLKWYVWLY[PLZHYL[OVZLHJX\PYLKPUVYKLY[VZL[[SL[OLKLI[ZHUKHYLZ[H[LKH[[OLSV^LYVMJVZ[ HUKUL[YLHSPZHISL]HS\L Agrobank Annual Report 2013 131 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :\TTHY`VMZPNUPÄJHU[HJJV\U[PUNWVSPJPLZJVU[»K (m)Provisions 7YV]PZPVUZHYLYLJVNUPZLK^OLU[OLYLPZHWYLZLU[SLNHSVYJVUZ[Y\J[P]LVISPNH[PVUHZHYLZ\S[VMWHZ[ L]LU[Z^OLUP[PZWYVIHISL[OH[HUV\[ÅV^VMYLZV\YJLZLTIVK`PUNLJVUVTPJILULÄ[Z^PSSILYLX\PYLK [VZL[[SL[OLVISPNH[PVUHUK^OLUHYLSPHISLLZ[PTH[LJHUILTHKLVM[OLHTV\U[VM[OLVISPNH[PVU 7YV]PZPVUZHYLYL]PL^LKH[[OLLUKVMLHJOYLWVY[PUNWLYPVKHUKPMP[PZUVSVUNLYWYVIHISL[OH[HUV\[ÅV^ VMYLZV\YJLZLTIVK`PUNLJVUVTPJILULÄ[Z^PSSILYLX\PYLK[VZL[[SL[OLVISPNH[PVU[OLWYV]PZPVUZHYL YL]LYZLK >OLYL[OLLќLJ[VM[OL[PTL]HS\LVMTVUL`PZTH[LYPHSWYV]PZPVUZHYLKPZJV\U[LK\ZPUNHJ\YYLU[ WYL[H_YH[L[OH[YLÅLJ[Z^OLYLHWWYVWYPH[L[OLYPZRZWLJPÄJ[V[OLSPHIPSP[` (n) Share capital 6YKPUHY`ZOHYLZHYLJSHZZPÄLKHZLX\P[`^OLU[OLYLPZUVJVU[YHJ[\HSVISPNH[PVU[V[YHUZMLYJHZOVY V[OLYÄUHUJPHSHZZL[Z*VZ[ZKPYLJ[S`H[[YPI\[HISL[V[OLPZZ\HUJLVMUL^LX\P[`ZOHYLZHYL[HRLU[V LX\P[`HZHKLK\J[PVUMYVT[OLWYVJLLKZ V *HZOÅV^Z[H[LTLU[ ;OL)HURHKVW[Z[OLPUKPYLJ[TL[OVKPU[OLWYLWHYH[PVUVMJHZOÅV^Z[H[LTLU[ (p) Cash and cash equivalents -VY[OLW\YWVZLZVM[OLJHZOÅV^Z[H[LTLU[JHZOJVTWYPZLZJHZOVUOHUKHUKKLTHUKKLWVZP[Z HUKJHZOLX\P]HSLU[ZJVTWYPZLOPNOS`SPX\PKPU]LZ[TLU[Z[OH[HYLJVU]LY[PISLPU[VJHZO^P[OHU PUZPNUPÄJHU[YPZRVMJOHUNLZPU]HS\L 132 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Changes in accounting policies 6U1HU\HY`[OL)HURHKVW[LK[OLMVSSV^PUNUL^HUKHTLUKLK4-9:HUK0*0U[LYWYL[H[PVUZ THUKH[VY`MVYÄUHUJPHSWLYPVKZILNPUUPUNVUVYHM[LY1HU\HY` ,ɈLJ[P]LMVYHUU\HSWLYPVKZILNPUUPUNVUVYHM[LY1\S` (TLUKTLU[Z[V4-9:!7YLZLU[H[PVUVM0[LTZVM6[OLY*VTWYLOLUZP]L0UJVTL ,ɈLJ[P]LMVYHUU\HSWLYPVKZILNPUUPUNVUVYHM[LY1HU\HY` 4-9:)\ZPULZZ*VTIPUH[PVUZ0-9:)\ZPULZZ*VTIPUH[PVUZPZZ\LKI`0(:)PU4HYJO 4-9: *VUZVSPKH[LKHUK:LWHYH[L-PUHUJPHS:[H[LTLU[Z0(: YL]PZLKI`0(:)PU+LJLTILY 4-9:*VUZVSPKH[LK-PUHUJPHS:[H[LTLU[Z 4-9:1VPU[(YYHUNLTLU[Z 4-9:+PZJSVZ\YLVM0U[LYLZ[ZPU6[OLY,U[P[PLZ 4-9:-HPY=HS\L4LHZ\YLTLU[ 4-9: ,TWSV`LL)LULÄ[Z0(: HZHTLUKLKI`0(:)PU1\UL 4-9: :LWHYH[L-PUHUJPHS:[H[LTLU[Z0(: HZHTLUKLKI`0(:)PU4H` 4-9: 0U]LZ[TLU[ZPU(ZZVJPH[LZHUK1VPU[=LU[\YLZ0(: HZHTLUKLKI`0(:)PU4H` 0*0U[LYWYL[H[PVU:[YPWWPUN*VZ[ZPU[OL7YVK\J[PVU7OHZLVMH:\YMHJL4PUL (TLUKTLU[Z[V4-9: +PZJSVZ\YLZ!6ќZL[[PUN-PUHUJPHS(ZZL[ZHUK-PUHUJPHS3PHIPSP[PLZ (UU\HS0TWYV]LTLU[ *`JSL (TLUKTLU[Z[V4-9:!.V]LYUTLU[3VHUZ (TLUKTLU[Z[V4-9:HUK!*VUZVSPKH[LK-PUHUJPHS:[H[LTLU[Z1VPU[(YYHUNLTLU[ZHUK +PZJSVZ\YLVM0U[LYLZ[ZPU6[OLY,U[P[PLZ!;YHUZP[PVUHS.\PKHUJL Agrobank Annual Report 2013 133 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Changes in accounting policies (cont’d) (KVW[PVUVM[OLHIV]LZ[HUKHYKZHUKPU[LYWYL[H[PVUZKPKUV[OH]LHU`LќLJ[TH[LYPHSVU[OLÄUHUJPHS WLYMVYTHUJLVYWVZP[PVUVM[OL)HURL_JLW[MVY[OVZLKPZJ\ZZLKILSV^! MFRS 13 Fair Value Measurement 4-9:LZ[HISPZOLZHZPUNSLZV\YJLVMN\PKHUJL\UKLY4-9:MVYHSSMHPY]HS\LTLHZ\YLTLU[Z4-9: KVLZUV[JOHUNL^OLUHULU[P[`PZYLX\PYLK[V\ZLMHPY]HS\LI\[YH[OLYWYV]PKLZN\PKHUJLVUOV^[V TLHZ\YLMHPY]HS\L\UKLY4-9:4-9:KLÄULZMHPY]HS\LHZHUL_P[WYPJL(ZHYLZ\S[VM[OLN\PKHUJLPU 4-9:[OL)HURYLHZZLZZLKP[ZWVSPJPLZMVYTLHZ\YPUNMHPY]HS\LZPUWHY[PJ\SHYP[Z]HS\H[PVUPUW\[ZZ\JOHZ VUWLYMVYTHUJLYPZRMVYMHPY]HS\LTLHZ\YLTLU[VMSPHIPSP[PLZ4-9:HSZVYLX\PYLZHKKP[PVUHSKPZJSVZ\YLZ (WWSPJH[PVUVM4-9:OHZUV[TH[LYPHSP[`PTWHJ[LK[OLMHPY]HS\LTLHZ\YLTLU[VM[OL)HUR(KKP[PVUHS KPZJSVZ\YLZ^OLYLYLX\PYLKHYLWYV]PKLKPU[OLPUKP]PK\HSUV[LZYLSH[PUN[V[OLHZZL[ZHUKSPHIPSP[PLZ^OVZL MHPY]HS\LZ^LYLKL[LYTPULK Amendments to MFRS 101: Presentation of Items of Other Comprehensive Income ;OLHTLUKTLU[Z[V4-9:PU[YVK\JLHNYV\WPUNVMP[LTZWYLZLU[LKPUV[OLYJVTWYLOLUZP]LPUJVTL 0[LTZ[OH[^PSSILYLJSHZZPÄLK¸YLJ`JSLK¹[VWYVÄ[VYSVZZH[HM\[\YLWVPU[PU[PTLLNUL[SVZZVYNHPUVU H]HPSHISLMVYZHSLÄUHUJPHSHZZL[ZOH]L[VILWYLZLU[LKZLWHYH[LS`MYVTP[LTZ[OH[^PSSUV[ILYLJSHZZPÄLK LNYL]HS\H[PVUVMSHUKHUKI\PSKPUNZ;OLHTLUKTLU[ZHќLJ[WYLZLU[H[PVUVUS`HUKOH]LUVPTWHJ[VU[OL )HUR»ZÄUHUJPHSWVZP[PVUVYWLYMVYTHUJL 134 Agrobank Annual Report 2013 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :[HUKHYKZPZZ\LKI\[UV[`L[LɈLJ[P]L ;OLMVSSV^PUNHYLZ[HUKHYKZHUKPU[LYWYL[H[PVUZPZZ\LKI`[OL4HSH`ZPHU(JJV\U[PUN:[HUKHYKZ)VHYK ¸4(:)¹I\[UV[`L[LќLJ[P]L\W[V[OLKH[LVMPZZ\HUJLVM[OL)HUR»ZÄUHUJPHSZ[H[LTLU[Z;OL)HUR PU[LUKZ[VHKVW[[OLZLZ[HUKHYKZHUKPU[LYWYL[H[PVUZPMHWWSPJHISL^OLU[OL`ILJVTLLќLJ[P]L! ,ɈLJ[P]LMVYHUU\HSWLYPVKZILNPUUPUNVUVYHM[LY1HU\HY` (TLUKTLU[Z[V4-9:!6ќZL[[PUN-PUHUJPHS(ZZL[ZHUK-PUHUJPHS3PHIPSP[PLZ (TLUKTLU[Z[V4-9:4-9:HUK4-9: !0U]LZ[TLU[,U[P[PLZ (TLUKTLU[Z[V4-9: !9LJV]LYHISL(TV\U[+PZJSVZ\YLZMVY5VU-PUHUJPHS(ZZL[Z (TLUKTLU[Z[V4-9: !5V]H[PVUVM+LYP]H[P]LZHUK*VU[PU\H[PVUVM/LKNL(JJV\U[PUN 0*0U[LYWYL[H[PVU3L]PLZ ,ɈLJ[P]LMVYHUU\HSWLYPVKZILNPUUPUNVUVYHM[LY1\S` (TLUKTLU[Z[V4-9: !+LÄULK)LULÄ[7SHUZ!,TWSV`LL*VU[YPI\[PVUZ (UU\HS0TWYV]LTLU[Z[V4-9:Z¶*`JSL (UU\HS0TWYV]LTLU[Z[V4-9:Z¶*`JSL ,ɈLJ[P]LKH[LZ[VILHUUV\UJLKI`4(:) 4-9: -PUHUJPHS0UZ[Y\TLU[Z0-9: PZZ\LKI`0(:)PU5V]LTILY 4-9: -PUHUJPHS0UZ[Y\TLU[Z0-9: PZZ\LKI`0(:)PU6J[VILY 4-9: -PUHUJPHS0UZ[Y\TLU[Z!/LKNL(JJV\U[PUNHUKHTLUKTLU[Z[V4-9: 4-9: HUK4-9: Agrobank Annual Report 2013 135 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 3. SIGNIFICANT ACCOUNTING POLICIES (cont’d) :[HUKHYKZPZZ\LKI\[UV[`L[LɈLJ[P]LJVU[»K MFRS 9 Financial Instruments 4-9: YLÅLJ[Z[OLÄYZ[WOHZLVM^VYRVU[OLYLWSHJLTLU[VM4-9: HUKHWWSPLZ[VJSHZZPÄJH[PVUHUK TLHZ\YLTLU[VMÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZHZKLÄULKPU4-9: ;OLZ[HUKHYK^HZPUP[PHSS` LќLJ[P]LMVYHUU\HSWLYPVKZILNPUUPUNVUVYHM[LY1HU\HY`I\[(TLUKTLU[Z[V4-9: !4HUKH[VY` ,MMLJ[P]L+H[LVM4-9: HUK;YHUZP[PVU+PZJSVZ\YLZPZZ\LKPU4HYJOTV]LK[OLTHUKH[VY` LќLJ[P]LKH[L[V1HU\HY` :\IZLX\LU[S`VU-LIY\HY`P[^HZHUUV\UJLK[OH[[OLUL^ LќLJ[P]LKH[L^PSSILKLJPKLK^OLU[OLWYVQLJ[PZJSVZLY[VJVTWSL[PVU;OLHKVW[PVUVM[OLÄYZ[WOHZLVM 4-9: ^PSSOH]LHULќLJ[VU[OLJSHZZPÄJH[PVUHUKTLHZ\YLTLU[VM[OL)HUR»ZÄUHUJPHSHZZL[ZI\[^PSS UV[OH]LHUPTWHJ[VUJSHZZPÄJH[PVUHUKTLHZ\YLTLU[ZVM[OL)HUR»ZÄUHUJPHSSPHIPSP[PLZ;OL)HUR^PSSX\HU[PM` [OLLќLJ[PUJVUQ\UJ[PVU^P[O[OLV[OLYWOHZLZ^OLU[OLÄUHSZ[HUKHYKPUJS\KPUNHSSWOHZLZPZPZZ\LK 4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENT ;OLWYLWHYH[PVUVM[OLÄUHUJPHSZ[H[LTLU[ZYLX\PYLZTHUHNLTLU[[VTHRLQ\KNLTLU[ZLZ[PTH[LZHUKHZZ\TW[PVUZ [OH[HќLJ[[OLYLWVY[LKHTV\U[ZVMPUJVTLL_WLUZLHZZL[ZHUKSPHIPSP[PLZHUK[OLKPZJSVZ\YLVMJVU[PUNLU[ SPHIPSP[PLZH[[OLYLWVY[PUNKH[L ;OLRL`HZZ\TW[PVUZJVUJLYUPUN[OLM\[\YLHUKV[OLYRL`ZV\YJLZVMLZ[PTH[PVU\UJLY[HPU[`H[[OLYLWVY[PUNKH[L [OH[OH]LHZPNUPÄJHU[YPZRVMJH\ZPUNTH[LYPHSHKQ\Z[TLU[[V[OLJHYY`PUNHTV\U[ZVMHZZL[ZHUKSPHIPSP[PLZ^P[OPU[OL UL_[ÄUHUJPHS`LHYHYLKPZJ\ZZLKILSV^ 136 Agrobank Annual Report 2013 4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENT (cont’d) 2L`ZV\YJLZVMLZ[PTH[PVU\UJLY[HPU[` H (SSV^HUJLMVYPTWHPYTLU[VUSVHUZÄUHUJPUNHUKHK]HUJLZ ;OL)HURYL]PL^ZKV\I[M\SSVHUZHK]HUJLZHUKÄUHUJPUNH[LHJOYLWVY[PUNKH[L[VHZZLZZ^OL[OLY HSSV^HUJLZMVYPTWHPYTLU[ZOV\SKILYLJVYKLKPU[OLÄUHUJPHSZ[H[LTLU[Z0UWHY[PJ\SHYQ\KNLTLU[PZ YLX\PYLKPU[OLPKLU[PÄJH[PVUVMPTWHPYLKSVHUZHUK[OLLZ[PTH[PVUVMYLHSPZHISLHTV\U[MYVTPTWHPYLK SVHUZ^OLUKL[LYTPUPUN[OLSL]LSVMHSSV^HUJLYLX\PYLK5V[L I 0TWHPYTLU[HZZLZZTLU[VM(-:ÄUHUJPHSPU]LZ[TLU[Z ;OL)HURYLJVYKZPTWHPYTLU[JOHYNLZVU(-:ÄUHUJPHSPU]LZ[TLU[Z^OLU[OLYLOHZILLUHZPNUPÄJHU[VY WYVSVUNLKKLJSPULPU[OLMHPY]HS\LILSV^[OLPYJVZ[;OLKL[LYTPUH[PVUVM^OH[PZºZPNUPMPJHU[»VY ºWYVSVUNLK»YLX\PYLZQ\KNLTLU[0UTHRPUN[OPZQ\KNLTLU[[OL)HURL]HS\H[LZHTVUNV[OLYMHJ[VYZ OPZ[VYPJHSZOHYLWYPJLTV]LTLU[ZHUK[OLK\YH[PVUHUKL_[LU[[V^OPJO[OLMHPY]HS\LVM(-:ÄUHUJPHS PU]LZ[TLU[ZPZSLZZ[OHUP[ZJVZ[5V[L J -HPY]HS\LLZ[PTH[PVUVM(-:ÄUHUJPHSPU]LZ[TLU[Z ;OLMHPY]HS\LVMZLJ\YP[PLZ[OH[HYLUV[[YHKLKPUHUHJ[P]LTHYRL[HYLKL[LYTPULK\ZPUN]HS\H[PVU [LJOUPX\LZIHZLKVUHZZ\TW[PVUZVMTHYRL[JVUKP[PVUZL_PZ[PUNH[[OLYLWVY[PUNKH[LPUJS\KPUN YLMLYLUJL[VX\V[LKTHYRL[WYPJLZHUKPUKLWLUKLU[KLHSLYX\V[LZMVYZPTPSHYZLJ\YP[PLZHUKKPZJV\U[LK JHZOÅV^TL[OVK5V[L Agrobank Annual Report 2013 137 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 5. INTEREST INCOME 2013 2012 RM’000 RM’000 3VHUZHUKHK]HUJLZ 70,443 103,106 0U]LZ[TLU[ZLJ\YP[PLZ! /;4 675 3,579 AFS 15,175 40,292 +LWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ 31,491 34,295 117,784 181,272 6M^OPJO! 0U[LYLZ[PUJVTLLHYULKVUPTWHPYLKSVHUZHUKHK]HUJLZ 12,153 15,006 6. INTEREST EXPENSE 2013 2012 RM’000 RM’000 Savings deposits and Agro Perdana 23,053 54,245 -P_LK:WLJPHSKLWVZP[Z 14,518 31,014 3VHUZJOLTLM\UKHUK6,*- (858) 2,149 36,713 87,408 138 Agrobank Annual Report 2013 7. NON-INTEREST INCOME (a) Fee and other operating income 2013 2012 RM’000 RM’000 Fee income :LY]PJLJOHYNLZHUKMLLZ 3,510 6,628 3VHUWYVJLZZPUNMLLZ 296 2,552 3,806 9,180 Other income 9LPTI\YZLTLU[VMNHWWPUNJVZ[ 661 1,994 0UJVTLMYVT7YVQLJ[3HKHUN:\UNHP;HZHU 659 833 0UJVTLMYVTZ[HќSVHUZHUKÄUHUJPUN 1,030 1,173 Rental 57 111 5VUVWLYH[PVUHSPUJVTL 1,649 5,087 4,056 9,198 7,862 18,378 (b) Investment income 2013 2012 RM’000 RM’000 5L[NHPUVUKPZWVZHSVM(-:PU]LZ[TLU[ZLJ\YP[PLZ 174,192 230,722 +P]PKLUKPUJVTL 10,940 10,908 185,132 241,630 Agrobank Annual Report 2013 139 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 8. OVERHEAD EXPENSES 2013 2012 RM’000 RM’000 Personnel cost :HSHY`HSSV^HUJLZHUKIVU\Z 186,556 169,876 ,7-JVU[YPI\[PVUZ 21,139 17,826 :6*:6JVU[YPI\[PVUZ 1,712 1,700 :[Hќ^LSMHYL 5,925 5,097 :[Hќ[YHPUPUN 4,240 4,281 9LJY\P[TLU[MLLZ 217 461 +PYLJ[VYZHSSV^HUJL 1,172 1,780 Medical insurance 4,922 4,592 9L[PYLTLU[ILULÄ[ZZJOLTL (10,035) 10,668 Others 2,397 594 218,245 216,875 Maintenance cost +LWYLJPH[PVUVMWYVWLY[`WSHU[HUKLX\PWTLU[5V[L 27,358 26,999 (TVY[PZH[PVUVMJVTW\[LYZVM[^HYL5V[L 12,433 13,628 0UZ\YHUJLVUWYVWLY[`WSHU[HUKLX\PWTLU[ 3,212 5,346 9LU[HSVMWYLTPZLZ 8,639 7,912 7YPU[PUNZ[H[PVULY`HUKVѝJLZ\WWSPLZ 7,793 9,203 >H[LYHUKLSLJ[YPJP[` 8,010 7,990 *VTW\[LYTHPU[LUHUJL 14,215 9,854 )\PSKPUNTHPU[LUHUJL 3,217 2,996 6ѝJLTHPU[LUHUJL 3,452 3,072 *VTW\[LYZ\WWS` 980 1,544 Others 2,830 2,973 92,139 91,517 4HYRL[PUNL_WLUZLZ (K]LY[PZPUNHUKWYVTV[PVUZ 4,139 2,577 Others 645 264 4,784 2,841 140 Agrobank Annual Report 2013 8. OVERHEAD EXPENSES (cont’d) 2013 2012 RM’000 RM’000 .LULYHSHKTPUPZ[YH[P]LL_WLUZLZ *VTT\UPJH[PVUL_WLUZLZ 14,015 14,097 .V]LYUTLU[NYHU[Z3H\UJOPUN 986 1,102 .V]LYUTLU[NYHU[Z6WLYH[PUN - 217 3LNHSMLLZ 16,743 13,695 (\KP[VY»ZYLT\ULYH[PVU :[H[\[VY`H\KP[ 380 380 6[OLYHZZ\YHUJLYLSH[LK 80 180 6[OLYZLY]PJLZ[H_JVTWSPHUJL 120 40 :LJ\YP[`JOHYNLZ 9,980 7,761 Others 2,162 1,552 44,466 39,024 359,634 350,257 9. GOVERNMENT GRANTS 2013 2012 RM’000 RM’000 3H\UJOPUN.YHU[! +L]LSVWTLU[L_WLUKP[\YL 986 1,102 (TVY[PZH[PVUVMJHWP[HSL_WLUKP[\YL 3,343 3,316 6WLYH[PUN.YHU[! +L]LSVWTLU[L_WLUKP[\YL - 217 (TVY[PZH[PVUVMJHWP[HSL_WLUKP[\YL 6,470 12,788 .V]LYUTLU[NYHU[Z-\UKZYLJV]LYLKYLSLHZLK! ,U[YLWYLUL\Y:JOLTLMVY.YHK\H[LZ ¸:<;2:¹UV[L I (573) (225) :WLJPHS-\UKMVY;LYLUNNHU\-PZOLY` ¸+2:7¹UV[L J 104 5 -\UKMVY4PUPZ[Y`VM@V\[OHUK:WVY[Z ¸+2):¹UV[L K 83 532 5H[PVUHS2L`,JVUVTPJ(YLH ¸52,(¹UV[L M 125 - 4PJYV,JVUVTPJ:[PT\SH[PVU7HJRHNL ¸4PJYV,:7¹UV[L N 10,268 14,698 20,806 32,433 Agrobank Annual Report 2013 141 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 10. ALLOWANCE FOR IMPAIRMENT ON LOANS, FINANCING AND ADVANCES 2013 2012 RM’000 RM’000 3VHUZÄUHUJPUNHUKHK]HUJLZ! (SSV^HUJLMVY[OL`LHY (91,248) (105,480) (TV\U[^YP[[LUIHJR\WVUYLJV]LYPLZHUKYL]LYZHS VMHSSV^HUJL 55,431 85,051 0UKP]PK\HSPTWHPYTLU[HSSV^HUJLUL[ (35,817) (20,429) (SSV^HUJLMVY[OL`LHY (98,308) (193,386) (TV\U[^YP[[LUIHJR 17,390 41,070 *VSSLJ[P]LPTWHPYTLU[HSSV^HUJLUL[ (80,918) (152,316) )HKKLI[ZHUKÄUHUJPUN! >YP[[LUVќ - (261) Recovered 80,900 85,716 (35,835) (87,290) 11. (ALLOWANCE FOR)/ WRITEBACK OF IMPAIRMENT ON INVESTMENT SECURITIES 2013 2012 RM’000 RM’000 (SSV^HUJLMVYPTWHPYTLU[! *VYWVYH[LIVUKZ (4,995) - 8\V[LKZOHYLZ 1,077 263 (3,918) 263 142 Agrobank Annual Report 2013 12. TAX EXPENSE 2013 2012 RM’000 RM’000 0UJVTL[H_! 4HSH`ZPHUPUJVTL[H_ 79,152 75 6]LY\UKLYWYV]PZPVUPUWYPVY`LHYZ (1,097) 6 78,055 81 +LMLYYLK[H_! 9LSH[PUN[VVYPNPUH[PVUHUKYL]LYZHSVM[LTWVYHY`KPќLYLUJLZ (5,073) 7,268 ;H_L_WLUZLMVY[OL`LHY 77,727 7,349 0UJVTL[H_PZJHSJ\SH[LKH[[OL4HSH`ZPHUZ[H[\[VY`[H_YH[LVM ! VM[OLLZ[PTH[LKHZZLZZHISL WYVÄ[MVY[OL`LHY;OLYLJVUJPSPH[PVUIL[^LLU[H_L_WLUZLHUKHJJV\U[PUNWYVÄ[VM[OL)HURT\S[PWSPLKI`[OL HWWSPJHISLJVYWVYH[L[H_YH[LHYLHZMVSSV^Z! 2013 2012 RM’000 RM’000 Restated 7YVÄ[ILMVYL[H_HUKaHRH[ 319,309 355,363 ;H_H[[OLHWWSPJHISLZ[H[\[VY`[H_YH[LVM ! ;H_LќLJ[ZVM! 0UJVTLUV[Z\IQLJ[[V[H_ ,_WLUZLZUV[KLK\J[PISLMVY[H_W\YWVZLZ ;H_L_WLUZL 77,727 7,349 Agrobank Annual Report 2013 143 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 12. TAX EXPENSE (cont’d) ;OL4PUPZ[Y`VM-PUHUJLI`UV[PÄJH[PVUPU[OL4HSH`ZPHU.HaL[[L7<( PZZ\LKHUVYKLYVU(WYPS ]LZ[PUNHSSWYVWLY[PLZYPNO[ZHUKSPHIPSP[PLZVM)HUR7LY[HUPHU4HSH`ZPHWYPVYJVYWVYH[PZH[PVU[V[OL)HUR^P[OV\[ HU`JVU]L`HUJLHZZPNUTLU[VY[YHUZMLY)HZLKVU[OLVYKLY[OL4PUPZ[Y`VM-PUHUJLPUHSL[[LYKH[LK 1\UL THKL[OLKLJPZPVU[VL_[LUK[OLYPNO[MVY[H_L_LTW[PVUVUHSSPUJVTLMVY`LHYZVMHZZLZZTLU[[V L_JLW[MVY[H_VUKP]PKLUKPUJVTL0UHKKP[PVU[OL)HURPZHSSV^LK[VJHYY`MVY^HYK[OL\UHIZVYILKJHWP[HS HSSV^HUJLZHUK\UHIZVYILK[H_SVZZLZMVY[OLZHPKL_LTW[WLYPVK;OLL_LTW[PVU^HZUV[L_[LUKLKHUK[OL )HURPZZ\IQLJ[[VPUJVTL[H_MYVT[OLJ\YYLU[ÄUHUJPHS`LHYLUKLK+LJLTILY 13. ZAKAT 2013 2012 RM’000 RM’000 AHRH[MVY[OL`LHY 1,826 2,082 ;OPZYLWYLZLU[ZHTV\U[[VILWHPKI`[OL)HURPUHJJVYKHUJL^P[O:OHYPHOHUKHWWYV]LKI`[OL:OHYPHO*V\UJPS ;OL)HUR\ZLZ[OLHZZL[NYV^[OTL[OVK[VJVTW\[LaHRH[ 14. CASH AND SHORT TERMS FUNDS 31 December 31 December 2013 2012 RM’000 RM’000 Cash in hand *HZOH[IHURZ :OVY[[LYTKLWVZP[ZTH[\YPUN ^P[OPU[OYLLTVU[OZ! 3PJLUZLKIHURZ 6[OLYÄUHUJPHSPUZ[P[\[PVUZ 1,273,397 1,827,012 144 Agrobank Annual Report 2013 15. DEPOSITS WITH FINANCIAL INSTITUTIONS 31 December 31 December 2013 2012 RM’000 RM’000 6[OLYÄUHUJPHSPUZ[P[\[PVUZ 60,000 - 4H[\YP[`Z[Y\J[\YLVMKLWVZP[Z^P[OÄUHUJPHS PUZ[P[\[PVUZPZHZMVSSV^Z! :P_TVU[OZ[VUPULTVU[OZ 60,000 - 16. INVESTMENT SECURITIES 31 December 31 December 2013 2012 RM’000 RM’000 Debt securities (-:H[MHPY]HS\L *VYWVYH[LIVUKZ 4HSH`ZPHU.V]LYUTLU[:LJ\YP[PLZ¸4.:¹.V]LYUTLU[ 0U]LZ[TLU[0ZZ\L¸.00¹ 3,281,897 2,976,130 HTM - at amortised cost *VYWVYH[LIVUKZ *VTTLYJPHSWHWLYZ 4HSH`ZPHU.V]LYUTLU[:LJ\YP[PLZ¸4.:¹.V]LYUTLU[ 0U]LZ[TLU[0ZZ\L¸.00¹ 214,162 214,079 3,496,059 3,190,209 Agrobank Annual Report 2013 145 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 16. INVESTMENT SECURITIES (cont’d) 31 December 31 December 2013 2012 RM’000 RM’000 Equity securities (-:H[MHPY]HS\L 8\V[LKZOHYLZPU4HSH`ZPH ;V[HSILMVYLHSSV^HUJLZ 3,594,651 3,461,741 (SSV^HUJLMVYPTWHPYTLU[ *VYWVYH[LIVUKZ 8\V[LKZOHYLZPU4HSH`ZPH (6,597) (2,679) Net 3,588,054 3,459,062 4H[\YP[`Z[Y\J[\YLMVY/;4PU]LZ[TLU[Z PZHZMVSSV^Z! 4H[\YP[`^P[OPUZP_TVU[OZ )L[^LLUZP_TVU[OZ[VVUL`LHY )L[^LLUVUL`LHY[V[OYLL`LHYZ )L[^LLU[OYLL`LHYZ[VÄ]L`LHYZ 4VYL[OHUÄ]L`LHYZ 214,162 214,079 4HYRL[]HS\LZVM/;4PU]LZ[TLU[ZHYLHZMVSSV^Z! Market Value *VYWVYH[LIVUKZ *VTTLYJPHSWHWLYZ 4HSH`ZPHU.V]LYUTLU[:LJ\YP[PLZ¸4.:¹.V]LYUTLU[ 0U]LZ[TLU[0ZZ\L¸.00¹ 213,150 214,584 146 Agrobank Annual Report 2013 16. INVESTMENT SECURITIES (cont’d) Corporate Quoted bonds Shares Total RM’000 RM’000 RM’000 4V]LTLU[PUHSSV^HUJLMVYPTWHPYTLU[ ([1HU\HY` 1,359 1,320 2,679 (SSV^HUJLMVYYL]LYZHSVMHSSV^HUJL K\YPUN[OL`LHY 4,995 (1,077) 3,918 ([+LJLTILY 6,354 243 6,597 17. LOANS, FINANCING AND ADVANCES 31 December 31 December 1 January 2013 2012 2012 RM’000 RM’000 RM’000 Restated Restated At amortised cost: 0ZSHTPJÄUHUJPUNHUKHK]HUJLZ5V[L N >H^HZHU;HUP3VHUZ 7YVQLJ[HUK,X\PWTLU[3VHUZ *HWP[HS,U[YLWYLUL\Y;HUP¸4<:;¹ (NYPI\ZPULZZ3VHUZ -\UK-VY-VVK¸-¹ 0UZHUP,K\JH[PVU3VHUZ 7HKK`*YLKP[:JOLTL 4(7HUK477)3VHUZ -\UKMVY:THSSHUK4LKP\T:PaL 0UK\Z[YPLZ¸;02:¹ Agrobank Annual Report 2013 147 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 17. LOANS, FINANCING AND ADVANCES (cont’d) 31 December 31 December 1 January 2013 2012 2012 RM’000 RM’000 RM’000 Restated Restated At amortised cost (cont’d): *VU[YHJ[;HUP3VHUZ 1,613 2,953 2,385 (NYPJ\S[\YL:WLJPHS*YLKP[:JOLTL¸:727¹ - 3 1,700 :WLJPHS(K]HUJLZVU-P_LK+LWVZP[ 156 521 522 ;VIHJJV:JOLTL 333 609 591 (ZLHU1HWHU+L]LSVWTLU[-\UK¸(1+-¹ 55 154 534 )HURPUN-HJPSP[PLZ 2 19 79 6[OLY3VHUZ 1,885 2,031 2,214 6,328,235 6,422,133 6,093,685 3VHUZÄUHUJPUNHUKHK]HUJLZ[VLTWSV`LLZ 65,098 70,990 72,690 6,393,333 6,493,123 6,166,375 Less: 0UKP]PK\HSPTWHPYTLU[HSSV^HUJL (237,264) (207,777) (268,380) *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL (305,915) (417,698) (441,637) Net 5,850,154 5,867,648 5,456,358 148 Agrobank Annual Report 2013 17. LOANS, FINANCING AND ADVANCES (cont’d) P 4H[\YP[`Z[Y\J[\YLVMNYVZZSVHUZMPUHUJPUNHUKHK]HUJLZHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated 4H[\YP[`^P[OPUZP_TVU[OZ 583,805 819,291 )L[^LLUZP_TVU[OZ[VVUL`LHY 91,590 89,898 )L[^LLUVUL`LHY[V[OYLL`LHYZ 526,081 542,565 )L[^LLU[OYLL`LHYZ[VÄ]L`LHYZ 818,220 777,486 4VYL[OHUÄ]L`LHYZ 4,373,637 4,263,883 6,393,333 6,493,123 PP .YVZZSVHUZÄUHUJPUNHUKHK]HUJLZHUHS`ZLKI`ZLJ[VYZHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated Sectors: Support 2,653,171 2,945,095 Crops 2,445,278 2,286,218 3P]LZ[VJR 700,814 687,978 -PZOLY` 435,527 402,747 -VYLZ[Y` 34,547 38,120 6[OLYHNYPJ\S[\YHSIHZLKWYVJLZZPUN 123,996 132,965 6,393,333 6,493,123 Agrobank Annual Report 2013 149 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 17. LOANS, FINANCING AND ADVANCES (cont’d) P .YVZZSVHUZÄUHUJPUNHUKHK]HUJLZHUHS`ZLKI`YLNPVUZHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated Regions: 2\HSH3\TW\Y 549,698 790,568 Selangor 756,453 681,730 Pahang 537,703 459,978 7LYHR 766,500 762,078 5LNLYP:LTIPSHU4LSHRH 465,618 456,204 1VOVY 525,394 539,256 2LSHU[HU 364,439 364,667 2LKHO7LYSPZ 583,327 536,643 :HYH^HR 655,559 685,403 :HIHO 618,189 578,299 Pulau Pinang 248,087 328,973 Terengganu 322,366 309,324 6,393,333 6,493,123 PPP .YVZZSVHUZÄUHUJPUNHUKHK]HUJLZHUHS`ZLKI`JSHZZPÄJH[PVUHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated 5LP[OLYWHZ[K\LUVYPTWHPYLK 5,337,602 5,124,064 7HZ[K\LI\[UV[PTWHPYLK 418,876 562,041 0TWHPYLK 636,855 807,018 6,393,333 6,493,123 7HZ[K\LI\[UV[PTWHPYLKSVHUZHYLSVHUZ^OLYL[OLJ\Z[VTLYOHZMHPSLK[VTHRLHWYPUJPWHSVY PU[LYLZ[WH`TLU[^OLUJVU[YHJ[\HSS`K\LHUKPUJS\KLZSVHUZ^OPJOHYLK\LTVYL[OHUVULKH`HM[LY [OLJVU[YHJ[\HSK\LKH[LI\[SLZZ[OHU[OYLLTVU[OZ 150 Agrobank Annual Report 2013 17. LOANS, FINANCING AND ADVANCES (cont’d) P] 4V]LTLU[PUPTWHPYLKNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated ([ILNPUUPUNVM[OL`LHY 807,018 907,175 (KKP[PVUZK\YPUN[OL`LHY 378,902 500,500 9LJSHZZPÄLKHZUVUPTWHPYLKK\YPUN[OL`LHY (90,134) (121,588) 9LJV]LYPLZK\YPUN[OL`LHY (231,324) (222,564) 9LJSHZZPÄLK[VVќIHSHUJLZOLL[K\YPUN[OL`LHY (23,782) - (TV\U[^YP[[LUVќ (203,825) (256,505) ([LUKVM[OL`LHY 636,855 807,018 .YVZZPTWHPYLKSVHUZHZHWLYJLU[HNLVM NYVZZSVHUZÄUHUJPUNHUKHK]HUJLZ 9.96% 12.43% ] 0TWHPYLKNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZHUHS`ZLKI`ZLJ[VYZHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated Sectors: Support 161,988 342,673 Crops 251,044 222,852 3P]LZ[VJR 103,728 112,381 -PZOLY` 75,612 78,958 -VYLZ[Y` 31,044 33,220 6[OLYHNYPJ\S[\YHSIHZLKWYVJLZZPUN 13,439 16,934 636,855 807,018 Agrobank Annual Report 2013 151 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 17. LOANS, FINANCING AND ADVANCES (cont’d) ] 0TWHPYLKNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZHUHS`ZLKI`YLNPVUZHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated Regions: 2\HSH3\TW\Y 139,635 197,477 Selangor 94,751 122,257 Pahang 66,906 73,536 7LYHR 72,318 88,644 5LNLYP:LTIPSHU4LSHRH 42,281 63,651 1VOVY 38,999 61,293 2LSHU[HU 38,897 44,983 2LKHO7LYSPZ 58,627 39,154 :HYH^HR 22,920 35,686 :HIHO 31,354 29,695 Pulau Pinang 17,374 31,482 Terengganu 12,793 19,160 636,855 807,018 ]P 4V]LTLU[PUPUKP]PK\HSPTWHPYTLU[HSSV^HUJLHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated 0UKP]PK\HSPTWHPYTLU[HSSV^HUJL ([ILNPUUPUNVM[OL`LHY 207,777 268,380 (SSV^HUJLMVY[OL`LHY 91,248 105,480 (TV\U[^YP[[LUIHJR\WVUYLJV]LYPLZHUK YL]LYZHSVMHSSV^HUJL (55,431) (85,051) 5L[HSSV^HUJLMVY[OL`LHY 35,817 20,429 (TV\U[^YP[[LUVќ (6,330) (81,032) ([LUKVM[OL`LHY 237,264 207,777 152 Agrobank Annual Report 2013 17. LOANS, FINANCING AND ADVANCES (cont’d) 31 December 31 December 2013 2012 RM’000 RM’000 Restated ]PP 4V]LTLU[PUJVSSLJ[P]LPTWHPYTLU[HSSV^HUJLHYLHZMVSSV^Z! *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL ([ILNPUUPUNVM[OL`LHY 417,698 441,637 (SSV^HUJLMVY[OL`LHY 98,308 193,386 (TV\U[^YP[[LUIHJR (17,390) (41,070) 5L[HSSV^HUJLMVY[OL`LHY 80,918 152,316 (TV\U[^YP[[LUVќ (192,701) (176,255) ([LUKVM[OL`LHY 305,915 417,698 *VSSLJ[P]LPTWHPYTLU[HSSV^HUJLHZHWLYJLU[HNLVM NYVZZSVHUZÄUHUJPUNHUKHK]HUJLZSLZZPUKP]PK\HS PTWHPYTLU[HSSV^HUJL 4.97% 6.65% 0UJS\KLKPUUL[JVSSLJ[P]LPTWHPYTLU[HSSV^HUJLMVY[OL`LHYHYLJVSSLJ[P]LPTWHPYTLU[HSSV^HUJLVU SVHUZÄUHUJPUNHUKHK]HUJLZM\UKLKI`NV]LYUTLU[NYHU[Z^OPJOHYLHZMVSSV^Z! ,U[YLWYLUL\Y:JOLTLMVY.YHK\H[LZ ¸:<;2:¹UV[L I (573) (225) :WLJPHS-\UKMVY;LYLUNNHU\-PZOLY` ¸+2:7¹UV[L J 104 5 -\UKMVY4PUPZ[Y`VM@V\[OHUK:WVY[Z ¸+2):¹UV[L K 83 532 5H[PVUHS2L`,JVUVTPJ(YLH ¸52,(¹UV[L M 125 - 4PJYV,JVUVTPJ:[PT\SH[PVU7HJRHNL ¸4PJYV,:7¹UV[L N 10,268 14,698 ;OL[V[HSHTV\U[VMJVSSLJ[P]LPTWHPYTLU[HSSV^HUJLPUJS\KLZJVSSLJ[P]LHSSV^HUJLZMVYUVUPTWHPYLK SVHUZVM94 !94 Agrobank Annual Report 2013 153 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 18. OTHER ASSETS 31 December 31 December 2013 2012 RM’000 RM’000 6[OLYYLJLP]HISLZ 39,380 31,730 0U[LYLZ[HUKPUJVTLYLJLP]HISL 54,632 61,222 Foreclosed properties 5,752 7,836 7YVQLJ[3HKHUN)74:N;HZHU 3,377 3,377 103,141 104,165 3LZZ!PTWHPYTLU[HSSV^HUJL (6,940) (8,245) Net 96,201 95,920 4V]LTLU[PUPTWHPYTLU[HSSV^HUJL ([ILNPUUPUNVM[OL`LHY 8,245 11,956 (KKP[PVUK\YPUN[OL`LHY - 2,472 9L]LYZHSK\YPUN[OL`LHY (1,305) (6,183) ([LUKVM[OL`LHY 6,940 8,245 154 Agrobank Annual Report 2013 19. PROPERTY, PLANT AND EQUIPMENT Furniture Equipment Freehold Freehold Leasehold Leasehold Motor and HUKVɉJL Computer land building land buildings vehicles Ä_[\YLZ machines OHYK^HYL Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Cost ([1HU\HY` Additions >YP[LVќKPZWVZHS ([+LJLTILY 3,591 11,732 8,034 87,147 13,774 146,067 57,211 73,650 401,206 Accumulated depreciation ([1HU\HY` *OHYNLMVY[OL`LHY >YP[LVќKPZWVZHS ([+LJLTILY - 3,693 1,788 21,776 10,420 79,155 27,406 61,574 205,812 Net book value ([+LJLTILY 3,591 8,039 6,246 65,371 3,354 66,912 29,805 12,076 195,394 ([+LJLTILY 3,591 8,343 6,322 65,107 2,487 62,792 26,914 15,300 190,856 Agrobank Annual Report 2013 155 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 19. PROPERTY, PLANT AND EQUIPMENT (cont’d) P ;OLWYVWLY[`WSHU[HUKLX\PWTLU[HJX\PYLKMYVTNV]LYUTLU[NYHU[ZSH\UJOPUN^P[OUL[IVVR]HS\LHTV\U[PUN[V 94 !94 HYLHZMVSSV^Z! Furniture Equipment Motor and HUKVɉJL Computer vehicles Ä_[\YLZ machines OHYK^HYL Total RM’000 RM’000 RM’000 RM’000 RM’000 At 31 December 2013 Cost 696 14,023 1,867 1,547 18,133 (JJ\T\SH[LKKLWYLJPH[PVU (696) (6,886) (900) (1,547) (10,029) Net book value - 7,137 967 - 8,104 At 31 December 2012 Cost 696 14,047 1,934 1,548 18,225 (JJ\T\SH[LKKLWYLJPH[PVU (673) (5,450) (714) (1,386) (8,223) Net book value 23 8,597 1,220 162 10,002 156 Agrobank Annual Report 2013 19. PROPERTY, PLANT AND EQUIPMENT (cont’d) PP ;OLWYVWLY[`WSHU[HUKLX\PWTLU[HJX\PYLKMYVTNV]LYUTLU[NYHU[ZVWLYH[PUN\UKLY[OL [O4HSH`ZPHU7SHU ¸942 ¹^P[OUL[IVVR]HS\LHTV\U[PUN[V94 !94 HYLHZMVSSV^Z! Furniture Equipment Motor and HUKVɉJL Computer Buildings vehicles Ä_[\YLZ machines OHYK^HYL Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 31 December 2013 Cost 13,600 1,709 28,188 4,000 23,975 71,472 (JJ\T\SH[LKKLWYLJPH[PVU (3,874) (1,709) (24,027) (2,039) (20,633) (52,282) Net book value 9,726 - 4,161 1,961 3,342 19,190 At 31 December 2012 Cost 13,600 1,709 28,188 4,000 23,975 71,472 (JJ\T\SH[LKKLWYLJPH[PVU (3,733) (1,709) (23,139) (1,638) (16,752) (46,971) Net book value 9,867 - 5,049 2,362 7,223 24,501 Agrobank Annual Report 2013 157 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 20. INTANGIBLE ASSETS Computer ZVM[^HYL RM’000 Cost ([1HU\HY` 63,651 Additions 18,476 >YP[LVќ (49) ([+LJLTILY 82,078 (JJ\T\SH[LKHTVY[PZH[PVU ([1HU\HY` 42,753 *OHYNLMVY[OL`LHY 12,433 >YP[LVќ (49) ([+LJLTILY 55,137 5L[IVVR]HS\L ([+LJLTILY 26,941 ([+LJLTILY 20,898 0UJS\KLKPU[OLHIV]LHYLJVTW\[LYZVM[^HYLHJX\PYLKMYVT[OLMVSSV^PUNNV]LYUTLU[NYHU[Z! a) Government Grant- Launching Accumulated Net book Cost amortisation value RM’000 RM’000 RM’000 158 Agrobank Annual Report 2013 20. INTANGIBLE ASSETS (cont’d) b) Government Grant- Operating under the 9th Malaysian Plan (“RMK 9”) Accumulated Net book Cost amortisation value RM’000 RM’000 RM’000 2013 1,525 2012 2,684 21. DEFERRED TAX ASSETS/(LIABILITIES) 31 December 31 December 2013 2012 RM’000 RM’000 Restated ([1HU\HY`HZWYL]PV\ZS`Z[H[LK (32,322) (80,390) 7YPVY`LHYHKQ\Z[TLU[ZUV[LPPP 18,534 19,310 ([1HU\HY`HZYLZ[H[LK (13,788) (61,080) 9LJVNUPZLKPUPUJVTLZ[H[LTLU[ 328 (7,268) 9LJVNUPZLKPULX\P[` 62,032 54,560 ([+LJLTILY 48,572 (13,788) 7YLZLU[LKHM[LYHWWYVWYPH[LVќZL[[PUNHZMVSSV^Z! +LMLYYLK[H_HZZL[Z 61,657 54,159 +LMLYYLK[H_SPHIPSP[PLZ (13,085) (67,947) 48,572 (13,788) +LMLYYLK [H_ HZZL[Z HUK SPHIPSP[PLZ HYL VќZL[ ^OLU [OLYL PZ H SLNHSS` LUMVYJLHISL YPNO[ [V ZL[Vќ J\YYLU[ [H_HZZL[ZHNHPUZ[J\YYLU[[H_SPHIPSP[PLZHUK^OLU[OLKLMLYYLKPUJVTL[H_LZYLSH[LZ[V[OLZHTLÄZJHS H\[OVYP[` Agrobank Annual Report 2013 159 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 21. DEFERRED TAX ASSETS/(LIABILITIES) (cont’d) ;OLJVTWVULU[ZHUKTV]LTLU[ZVMKLMLYYLK[H_HZZL[ZHUKSPHIPSP[PLZK\YPUN[OLÄUHUJPHS`LHYWYPVY[VVќZL[[PUNHYLHZMVSSV^Z! At Recognised Recognised At 31 1 January in income directly December Recognised Recognised At 31 2012 statement in equity 2012 in income directly December RM’000 RM’000 RM’000 RM’000 statement in equity 2013 Restated Restated Restated Restated RM’000 RM’000 RM’000 +LMLYYLK[H_SPHIPSP[PLZ! 7YVWLY[`WSHU[HUK LX\PWTLU[ (9,074) 3,876 - (5,198) (7,170) - (12,368) 0U]LZ[TLU[YL]HS\H[PVU (117,309) - 54,560 (62,749) - 62,032 (717) reserve (126,383) 3,876 54,560 (67,947) (7,170) 62,032 (13,085) +LMLYYLK[H_HZZL[Z! (SSV^HUJLMVYPTWHPYTLU[ VUSVHUZÄUHUJPUNHUK advances 31,964 (31,964) - - - - - (SSV^HUJLMVYPTWHPYTLU[ on securities 2,408 (2,408) - - - - - 7YV]PZPVUMVY\UKPZ[YPI\[LK WYVÄ[ 19,310 21,106 - 40,416 13,036 - 53,452 6[OLY[LTWVYHY`KPќLYLUJLZ 11,621 2,122 - 13,743 (5,538) - 8,205 65,303 (11,144) - 54,159 7,498 - 61,657 5L[KLMLYYLK[H_HZZL[Z SPHIPSP[PLZ (61,080) (7,268) 54,560 (13,788) 328 62,032 48,572 160 Agrobank Annual Report 2013 22. DEPOSITS FROM CUSTOMERS 31 December 31 December 2013 2012 RM’000 RM’000 Restated At amortised cost: -P_LKTVUL`THYRL[KLWVZP[Z 3,514,693 3,779,419 Savings deposits 1,581,660 1,640,654 Agro Perdana 1,498,293 1,443,143 6,594,646 6,863,216 4H[\YP[`Z[Y\J[\YLVMÄ_LKTVUL`THYRL[KLWVZP[Z MYVTJ\Z[VTLYZPZHZMVSSV^Z! >P[OPUZP_TVU[OZ 1,458,119 2,843,736 )L[^LLUZP_TVU[OZ[VVUL`LHY 1,953,240 857,159 )L[^LLUVUL`LHY[V[OYLL`LHYZ 28,359 29,688 )L[^LLU[OYLL`LHYZ[VÄ]L`LHYZ 74,975 48,836 3,514,693 3,779,419 ;OLKLWVZP[ZHYLZV\YJLKMYVT[OLMVSSV^PUN[`WLZVMJ\Z[VTLYZ! .V]LYUTLU[ 2,695,451 2,492,133 Individuals 2,619,842 2,760,759 +VTLZ[PJI\ZPULZZLU[LYWYPZLZ 436,464 601,653 +VTLZ[PJV[OLYLU[P[PLZ 814,321 965,618 +VTLZ[PJUVUIHURPUNPUZ[P[\[PVUZ 28,568 43,053 6,594,646 6,863,216 Agrobank Annual Report 2013 161 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 23. OTHER LIABILITIES (a) Other payables and accruals 31 December 31 December 2013 2012 RM’000 RM’000 Restated (JJY\LKL_WLUZLZ 52,653 52,314 :\UKY`JYLKP[VYZ 52,966 61,558 +VUH[PVUJOHYP[` 11 155 AHRH[WH`HISL 2,469 4,075 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[ (i) 213,809 161,665 7YV]PZPVUMVY[H_L_WLUZL 2,682 1,191 9L[PYLTLU[ILULÄ[ZZJOLTL (ii) 2,345 43,641 326,935 324,599 P 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[ 31 December 31 December 2013 2012 RM’000 RM’000 Restated ([1HU\HY`HZWYL]PV\ZS`Z[H[LK - - 7YPVY`LHYHKQ\Z[TLU[ZUV[LPP 161,665 77,240 ([1HU\HY`HZYLZ[H[LK 161,665 77,240 7YV]PZPVUMVY[OL`LHY 52,144 84,425 At 31 December 213,809 161,665 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[YLSH[LZ[V\UKLYHJJY\HSVMWYVÄ[WH`HISLVU4\KOHYHIHOKLWVZP[Z PUWYPVY`LHYZHZKPZJSVZLKM\Y[OLYPUUV[LPP 162 Agrobank Annual Report 2013 23. OTHER LIABILITIES (cont’d) (a) Other payables and accruals (cont’d) PP 9L[PYLTLU[ILULÄ[ZZJOLTL (a) ;OLWYV]PZPVUMVYYL[PYLTLU[ILULÄ[ZZJOLTLPZHZMVSSV^Z! RM’000 At 1 January 2013 43,641 Current service cost 197 )LULÄ[ZWHPKMYVTWSHU (31,261) (JJ\T\SH[LKV]LYWYV]PZPVU (10,232) At 31 December 2013 2,345 *\YYLU[ZLY]PJLJVZ[YLWYLZLU[Z[OLPUJYLHZLPU[OLYL[PYLTLU[ILULÄ[H[LHJOYLWVY[PUNKH[L YLZ\S[PUNMYVTHUHKKP[PVUHS`LHYVMZLY]PJLYLUKLYLKI`[OLLTWSV`LL (b) ;OLWYPUJPWHSHZZ\TW[PVUZ\ZLK[VKL[LYTPUL[OLLZ[PTH[LKJVZ[ZHUKVISPNH[PVUZHYLHZMVSSV^Z! 31 December 2013 Turnover and early retirement rate Age brackets: 3LZZ[OHU`LHYZ 8.12% `LHYZ 7.48% `LHYZ 6.22% `LHYZ 4.76% `LHYZ 3.36% `LHYZ 1.96% `LHYZHUKV]LY 0.81% Salaries increase rate (per annum) 5.00% (]LYHNLYLTHPUPUN`LHYZVMZLY]PJLVMLTWSV`LLZ 16 years Agrobank Annual Report 2013 163 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 23. OTHER LIABILITIES (cont’d) (a) Other payables and accruals (cont’d) PP 9L[PYLTLU[ILULÄ[ZZJOLTLJVU[»K (c) :LUZP[P]P[`HUHS`ZPZMVYKPZJV\U[YH[LYPZR (VULWLYJLU[HNL WVPU[KLJYLHZLVYPUJYLHZLPU[OLHZZ\TLKKPZJV\U[YH[L^V\SKOH]L[OL MVSSV^PUNLќLJ[Z! P*\YYLU[ZLY]PJLJVZ[[VPUJYLHZLI`94 VYKLJYLHZLI`94YLZWLJ[P]LS` PP7YV]PZPVUMVYYL[PYLTLU[ILULÄ[ZJOLTL[VPUJYLHZL[V94 VYKLJYLHZL[V94 YLZWLJ[P]LS` (b) Paddycredit gratuity scheme 31 December 31 December 2013 2012 RM’000 RM’000 ([ILNPUUPUNVM[OL`LHY Additions 7H`TLU[ ([[OLLUKVM`LHY 2,225 2,185 ;OL)HURZL[Z\W[OPZZJOLTL[VTHUHNL[OLNYH[\P[`[V[OLWHKK`JYLKP[ZJOLTLSVHULLZ;OLM\UK\UKLY [OPZZJOLTLPZJVU[YPI\[LK[OYV\NO[OL^P[OOVSKPUNVMHUHTV\U[MYVT[OLSVHUZKPZI\YZLK[V[OLSVHULLZ MVYWH`TLU[VMM\[\YLKLH[OILULÄ[Z[V[OLSLNHSOLPYVM[OLSVHULLZ\WVU[OLPYKLTPZL 164 Agrobank Annual Report 2013 24. LOAN SCHEME FUND :\TTHY`VMSVHUZJOLTLM\UKPZHZMVSSV^Z! Note 31 December 31 December 2013 2012 RM’000 RM’000 3VHUMYVT6,*- H - 20,638 -\UKMVY-VVK¸-¹ I 1,003,316 970,463 477)-\UKZ J 51,134 70,486 6PS7HST9LWSHU[PUN :JOLTL¸;(:2:¹ K 13,000 14,000 7HKK`*YLKP[:JOLTL L 76,701 105,715 Food Production Credit :JOLTL¸:274¹ M 74,923 100,744 -PZOLY`)VH[-PUHUJPUN :JOLTL¸:7)7¹ N 140,000 140,000 ,U[YLWYLUL\Y:JOLTLMVY .YHK\H[LZ ¸:<;2:-PUHUJPUN¹ O 6,015 8,010 3VHUMVY:THSSHUK4LKP\T :PaL0UK\Z[YPLZ¸72:¹ P 73,048 100,730 5VU-VVK7YVK\J[PVU*YLKP[ :JOLTL¸:27)4¹ Q 22,594 25,073 Micro Enterprise Fund R 94,616 83,767 1,555,347 1,639,626 Agrobank Annual Report 2013 165 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 24. LOAN SCHEME FUND (cont’d) H 3VHUMYVT6,*- Principal Interest Total RM’000 RM’000 RM’000 ([1HU\HY` 20,063 575 20,638 Addition Interest charged 9LWH`TLU[ -VYLPNUL_JOHUNLKPќLYLUJLZ ([+LJLTILY 31 December 31 December 2013 2012 RM’000 RM’000 4H[\YP[`Z[Y\J[\YLVMSVHUMYVT 6,*-PZHZMVSSV^Z! >P[OPUVUL`LHY - 20,638 ;OPZSVHU^HZVI[HPULKMYVT[OL6]LYZLHZ,JVUVTPJ*VVWLYH[PVU-\UK¸6,*-¹PU H[HU PU[LYLZ[YH[LVM WLYHUU\TMVY `LHYZ;OLYLWH`TLU[WLYPVKJVTTLUJLKPU HUK[OL SVHU^HZM\SS`ZL[[SLKPU (b) Fund For Food (“3F”) Principal 7YVÄ[ Total RM’000 RM’000 RM’000 ([1HU\HY` 965,876 4,587 970,463 Additions 7YVÄ[JOHYNLK 9LWH`TLU[Z ([+LJLTILY 1,003,006 310 1,003,316 166 Agrobank Annual Report 2013 24. LOAN SCHEME FUND (cont’d) (b) Fund For Food (“3F”) (cont’d) (c) Bumiputera Commercial and Industrial Community Scheme (“MPPB”) Principal 7YVÄ[ Total RM’000 RM’000 RM’000 ([1HU\HY` 70,000 486 70,486 7YVÄ[JOHYNLK 9LWH`TLU[Z ([+LJLTILY 51,099 35 51,134 (d) Oil Palm Replanting Scheme (“TASKS”) Principal 7YVÄ[ Total RM’000 RM’000 RM’000 14,000 - 14,000 ([1HU\HY` 9LWH`TLU[Z 13,000 - 13,000 ([+LJLTILY ;OPZM\UKPZJOHUULSSLK[OYV\NO[OL4PUPZ[Y`VM7SHU[H[PVU0UK\Z[YPLZHUK*VTTVKP[PLZ[VÄUHUJL[OL YLWSHU[PUNVMVPSWHSTWSHU[H[PVUZ Agrobank Annual Report 2013 167 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 24. LOAN SCHEME FUND (cont’d) (e) Paddy Credit Scheme Principal 7YVÄ[ Total RM’000 RM’000 RM’000 105,000 715 105,715 At 1 January 2013 54 54 7YVÄ[JOHYNLK (717) (29,068) Repayments 76,649 52 76,701 ([+LJLTILY ;OL4PUPZ[Y`VM(NYPJ\S[\YLWYV]PKLK94 TPSSPVU[V[OL)HUR[VLUJV\YHNL[OLJV\U[Y`»ZWHKK` PUK\Z[Y`;OLSVHU[LU\YLPZ`LHYZ`LHYZNYHJLWLYPVKH[HWYVÄ[YH[LVM WLYHUU\T M -VVK7YVK\J[PVU*YLKP[:JOLTL¸:274¹ Principal 7YVÄ[ Total RM’000 RM’000 RM’000 ([1HU\HY` 100,000 744 100,744 7YVÄ[JOHYNLK 9LWH`TLU[Z ([+LJLTILY 74,579 344 74,923 168 Agrobank Annual Report 2013 24. LOAN SCHEME FUND (cont’d) (g) Fishery Boat Financing Scheme (“SPBP”) Principal RM’000 ([1HU\HY` 140,000 9LWH`TLU[Z ([+LJLTILY 140,000 O ,U[YLWYLUL\Y:JOLTLMVY.YHK\H[LZ¸:<;2:-PUHUJPUN¹ Principal 7YVÄ[ Total RM’000 RM’000 RM’000 ([1HU\HY` 8,010 - 8,010 7YVÄ[JOHYNLK 9LWH`TLU[Z ([+LJLTILY 6,015 - 6,015 ;OL.V]LYUTLU[HSSVJH[LK94TPSSPVUMVYH[LU\YLVM`LHYZ `LHYZNYHJLWLYPVKH[HWYVÄ[ YH[LVM WLYHUU\T;OLW\YWVZLVM[OPZZJOLTLPZ[VLUJV\YHNL[OLPU]VS]LTLU[VMNYHK\H[LZ PU[OLHNYPJ\S[\YLZLJ[VY Agrobank Annual Report 2013 169 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 24. LOAN SCHEME FUND (cont’d) P 3VHUMVY:THSSHUK4LKP\T:PaL0UK\Z[YPLZ¸72:¹ Principal 7YVÄ[ Total RM’000 RM’000 RM’000 ([1HU\HY` 100,000 730 100,730 7YVÄ[JOHYNLK 9LWH`TLU[Z ([+LJLTILY 72,999 49 73,048 (j) Non-Food Production Credit Scheme (“SKPBM”) Principal 7YVÄ[ Total RM’000 RM’000 RM’000 ([1HU\HY` 25,062 11 25,073 7YVÄ[JOHYNLK 9LWH`TLU[Z ([+LJLTILY 22,584 10 22,594 170 Agrobank Annual Report 2013 24. LOAN SCHEME FUND (cont’d) (k) Micro Enterprise Fund Principal 7YVÄ[ Total RM’000 RM’000 RM’000 ([1HU\HY` 83,770 (3) 83,767 Additions 7YVÄ[JOHYNLK 9LWH`TLU[Z ([+LJLTILY 94,617 (1) 94,616 ;OLM\UKHTV\U[PUN[V94TPSSPVU^HZSH\UJOLKI`)HUR5LNHYH4HSH`ZPH¸¹)54¹¹[V PUJYLHZL[OLHJJLZZ[VTPJYVÄUHUJPUN[VZLSLJ[LKLSPNPISLTPJYVLU[YLWYLUL\YZ;OLWYVÄ[YH[LVM[OPZ M\UKPZ WLYHUU\TMVYH[LU\YLVM `LHYZ 25. GOVERNMENT GRANTS - OPERATING Capital Development ,_WLUKP[\YL ,_WLUKP[\YL Total RM’000 RM’000 RM’000 ([1HU\HY` 41,795 77 41,872 (TVY[PZH[PVUK\YPUN[OL`LHY ([+LJLTILY 35,325 77 35,402 :PUJL [OL)HURYLJLP]LKVWLYH[PUNNYHU[HTV\U[PUN[V94 TPSSPVUMYVT[OL4PUPZ[Y`VM-PUHUJL ;OLW\YWVZLVM[OLNYHU[PZMVYJHWP[HSL_WLUKP[\YL[VÄUHUJL[OLHJX\PZP[PVUVMWYVWLY[`WSHU[HUKLX\PWTLU[ HUKKL]LSVWTLU[L_WLUKP[\YL[VÄUHUJL[OL[YHPUPUNJV\YZLZNP]LU[VLU[YLWYLUL\YZ Agrobank Annual Report 2013 171 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 26. GOVERNMENT GRANTS - LAUNCHING Capital Development ,_WLUKP[\YL ,_WLUKP[\YL Total RM’000 RM’000 RM’000 ([1HU\HY` 14,301 7,297 21,598 9LJSHZZPÄJH[PVU <[PSPZH[PVUK\YPUN[OL`LHY (TVY[PZH[PVUK\YPUN[OL`LHY ([+LJLTILY 10,345 6,924 17,269 0U [OL4PUPZ[Y`VM-PUHUJLHWWYV]LKHUHSSVJH[PVUVM94TPSSPVU[V[OL)HURMVY[OLW\YWVZL VM [OL )HUR»ZJVYWVYH[PZH[PVU ;OL NYHU[ PZ [V IL \ZLK MVY IYHUKPUN WYVK\J[ KL]LSVWTLU[ HUK VѝJL L_WHUZPVU 27. GOVERNMENT GRANTS - FUNDS :\TTHY`VMNV]LYUTLU[NYHU[M\UKZPZHZMVSSV^Z! 31 December 31 December 1 January 2013 2012 2012 Note RM’000 RM’000 RM’000 Restated Restated +L]LSVWTLU[7YVNYHTTLMVY /HYKJVYL7VVY¸779;¹ H ,U[YLWYLUL\Y:JOLTL MVY.YHK\H[LZ¸:<;2:¹ I Special Fund For Terengganu -PZOLY`¸+2:7¹ J -\UKMVY4PUPZ[Y`VM@V\[O HUK:WVY[Z¸+2):¹ K )\TPW\[LYH*VTTLYJPHS HUK0UK\Z[YPHS*VTT\UP[` :JOLTL/<)¸477)/<)¹ L 5H[PVUHS2L`,JVUVTPJ(YLH ¸52,(¹ M 4PJYV,JVUVTPJ:[PT\SH[PVU 7HJRHNL¸4PJYV,:7¹ N 257,500 229,250 245,013 172 Agrobank Annual Report 2013 27. GOVERNMENT GRANTS - FUNDS (cont’d) H +L]LSVWTLU[7YVNYHTTLMVY/HYKJVYL7VVY¸779;¹ RM’000 ([+LJLTILYHUK+LJLTILY 2,560 ;OPZWYVNYHTTLYLWYLZLU[ZWYVÄ[MYLLÄUHUJPUNMYVT[OL.V]LYUTLU[[VOHYKJVYLWVVY I ,U[YLWYLUL\Y:JOLTLMVY.YHK\H[LZ¸:<;2:¹ 31 December 31 December 2013 2012 RM’000 RM’000 ([ILNPUUPUNVM[OL`LHY .V]LYUTLU[.YHU[Z-\UKZYLJV]LYLKUV[L ([LUKVM[OL`LHY 1,358 785 ;OLVIQLJ[P]LVM[OPZWYVNYHTTLPZ[VYLK\JL[OL\ULTWSV`TLU[YH[LHTVUNNYHK\H[LZI`JYLH[PUN JHYLLYVWWVY[\UP[PLZPU[OLHNYPJ\S[\YHSZLJ[VY-PUHUJPUNPZVќLYLK\UKLY(S¶)HP»)P[OHTHU(QPS^OPJO PTWVZLZHWYVÄ[YH[LVM WLYHUU\T J :WLJPHS-\UKMVY;LYLUNNHU\-PZOLY`¸+2:7¹ 31 December 31 December 2013 2012 RM’000 RM’000 ([ILNPUUPUNVM[OL`LHY (TVY[PZH[PVUMVY[OL`LHY .V]LYUTLU[.YHU[Z-\UKZYLSLHZLKUV[L ([LUKVM[OL`LHY 587 1,391 ;OLVIQLJ[P]LVM[OPZM\UKPZ[VYHPZL[OLZVJPVLJVUVTPJZ[H[\ZVMÄZOLYTLUÄZOIYLLKLYZHUK HX\HJ\S[\YLLU[YLWYLUL\YZ;OLÄUHUJPUNPZVќLYLK\UKLY(S¶)HP»)P[OHTHU(QPS\W[V VM[OL [V[HSWYVQLJ[JVZ[HUKPZWYVÄ[MYLLYH[L;OLÄUHUJPUN[LYTZ^V\SKKLWLUKVU[OLWYVQLJ[^P[O YLWH`TLU[[LYTZUV[L_JLLKPUN`LHYZ Agrobank Annual Report 2013 173 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 27. GOVERNMENT GRANTS - FUNDS (cont’d) K -\UKMVY4PUPZ[Y`VM@V\[OHUK:WVY[Z¸+2):¹ 31 December 31 December 2013 2012 RM’000 RM’000 ([ILNPUUPUNVM[OL`LHY .V]LYUTLU[.YHU[Z-\UKZYLSLHZLKUV[L ([LUKVM[OL`LHY 11,689 11,772 ;OLW\YWVZLVM[OPZM\UKPZ[VLUJV\YHNL`V\[O[VILPU]VS]LKPU[OLHNYPJ\S[\YHSPUK\Z[Y`\UKLY:RPT )LSPH;HUP (e) Bumiputera Commercial and Industrial Community Scheme HUB (“MPPB HUB”) 31 December 31 December 2013 2012 RM’000 RM’000 ([ILNPUUPUNVM[OL`LHY 9LJLP]LKK\YPUN[OL`LHY ([LUKVM[OL`LHY 40,000 - ;OLVIQLJ[P]LVM[OPZM\UKPZ[VÄUHUJL)\TPW\[LYHHNYPJ\S[\YHS]LU[\YLZ^P[OTH_PT\TÄUHUJPUN H]HPSHISL\W[V94 M 5H[PVUHS2L`,JVUVTPJ(YLH¸52,(¹ 31 December 31 December 2013 2012 RM’000 RM’000 Restated ([ILNPUUPUNVM[OL`LHY (TVY[PZH[PVUMVY[OL`LHY .V]LYUTLU[.YHU[Z-\UKZYLSLHZLKUV[L ([LUKVM[OL`LHY 53,832 55,000 ;OLW\YWVZLVM[OPZM\UKPZ[VLUJV\YHNLLU[YLWYLUL\YZ[VWHY[PJPWH[LPUHNYVIHZLKPUK\Z[YPLZI` WYV]PKPUNHTH_PT\TVM94WLYÄUHUJPUN 174 Agrobank Annual Report 2013 27. GOVERNMENT GRANTS - FUNDS (cont’d) (g) Micro Economic Stimulation Package (“Micro - ESP”) 31 December 31 December 2013 2012 RM’000 RM’000 Restated ([ILNPUUPUNVM[OL`LHY 3LNHSMLLZ .V]LYUTLU[.YHU[Z-\UKZYLSLHZLKUV[L ([LUKVM[OL`LHY 147,474 157,742 ;OLW\YWVZLVM[OPZM\UKPZ[VLUJV\YHNLLU[YLWYLUL\YZ[VWHY[PJPWH[LPUHNYPJ\S[\YHSWYVK\J[PVUHJ[P]P[PLZ I`WYV]PKPUNHTH_PT\TVM94WLYÄUHUJPUN 28. SHARE CAPITAL 31 December 31 December 2013 2012 RM’000 RM’000 Authorised: 6YKPUHY`ZOHYLZVM94LHJO 2,000,000 2,000,000 0ZZ\LKHUKM\SS`WHPK! 6YKPUHY`ZOHYLZVM94LHJO 1,000,000 1,000,000 Agrobank Annual Report 2013 175 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 29. RESERVES Note 31 December 31 December 2013 2012 RM’000 RM’000 Non-distributable reserve: :[H[\[VY`YLZLY]LZ H 0U]LZ[TLU[YL]HS\H[PVUYLZLY]L I Distributable reserve: Retained earnings 1,349,389 1,325,262 (a) Statutory reserves ;YHUZMLYVMWYVÄ[[VYLZLY]LM\UKPZVUS`HWWSPJHISL^OLU9>*9VM[OL)HURPZILSV^[OL[OYLZOVSKVM HZHWWYV]LKI`)54]PHSL[[LY[V[OL)HURKH[LK-LIY\HY` (b) Investment revaluation reserve ;OLPU]LZ[TLU[YL]HS\H[PVUYLZLY]LPZPUYLZWLJ[VM\UYLHSPZLKMHPY]HS\LNHPUHUKSVZZVUÄUHUJPHS PU]LZ[TLU[Z(-: 30. DIVIDENDS 2013 2012 RM’000 RM’000 0U[LYPTKP]PKLUKVMZLUSLZZ [H_VU VYKPUHY`ZOHYLZPUYLZWLJ[VM[OLÄUHUJPHS `LHYLUKLK+LJLTILY -PUHSKP]PKLUKVMZLUSLZZ [H_VU VYKPUHY`ZOHYLZPUYLZWLJ[VM[OLÄUHUJPHS `LHYLUKLK+LJLTILY -PUHSKP]PKLUKVMZLUSLZZ [H_VU VYKPUHY`ZOHYLZPUYLZWLJ[VM[OLÄUHUJPHS `LHYLUKLK+LJLTILY 31,500 22,500 176 Agrobank Annual Report 2013 30. DIVIDENDS (cont’d) ([[OLMVY[OJVTPUN(UU\HS.LULYHS4LL[PUNHÄUHSZPUNSL[PLYKP]PKLUKPUYLZWLJ[VM[OLJ\YYLU[ÄUHUJPHS `LHYLUKLK+LJLTILYVM ZLUVUVYKPUHY`ZOHYLZVM94LHJOHTV\U[PUN [VKP]PKLUKWH`HISLVM94 ^PSSILWYVWVZLKMVYZOHYLOVSKLY»ZHWWYV]HS ;OLÄUHUJPHSZ[H[LTLU[ZMVY[OLJ\YYLU[ÄUHUJPHS`LHYKVUV[YLÅLJ[[OPZWYVWVZLKKP]PKLUK:\JOKP]PKLUK PMHWWYV]LKI`[OLZOHYLOVSKLY^PSSILHJJV\U[LKMVYPULX\P[`HZHUHWWYVWYPH[PVUVMYL[HPULKLHYUPUNZPU [OLUL_[ÄUHUJPHS`LHYLUKPUN+LJLTILY 7YPVY [V [OL `LHY VM HZZLZZTLU[ 4HSH`ZPHU JVTWHUPLZ HKVW[LK [OL M\SS PTW\[H[PVU Z`Z[LT 0U HJJVYKHUJL^P[O[OL-PUHUJL(J[ ^OPJO^HZNHaL[[LKVU +LJLTILY JVTWHUPLZZOHSS UV[ILLU[P[SLK[VKLK\J[[H_VUKP]PKLUKZWHPKJYLKP[LKVYKPZ[YPI\[LK[VP[ZZOHYLOVSKLYZHUKZ\JO KP]PKLUKZ^PSSILL_LTW[LKMYVT[H_PU[OLOHUKZVM[OLZOHYLOVSKLYZ¸ZPUNSL[PLYZ`Z[LT¹/V^L]LY [OLYLPZH[YHUZP[PVUHSWLYPVKVMZP_`LHYZL_WPYPUNVU+LJLTILY[VHSSV^JVTWHUPLZ[VWH` MYHURLKKP]PKLUKZ[V[OLPYZOHYLOVSKLYZ\UKLYSPTP[LKJPYJ\TZ[HUJLZ*VTWHUPLZHSZVOH]LHUPYYL]VJHISL VW[PVU[VKPZYLNHYK[OLZLJ[PVU IHSHUJLVM[OL0UJVTL;H_(J[ HUKVW[[VWH`KP]PKLUKZ\UKLY [OLZPUNSL[PLYZ`Z[LT;OLJOHUNLPU[OL[H_SLNPZSH[PVUHSZVWYV]PKLZMVY[OLZLJ[PVU IHSHUJL[VIL SVJRLKPUHZH[+LJLTILY PUHJJVYKHUJL^P[O:LJ[PVU VM[OL-PUHUJL(J[ ;OL )HUR KPK UV[ LSLJ[ MVY [OL PYYL]VJHISL VW[PVU [V KPZYLNHYK [OL ZLJ[PVU IHSHUJL (JJVYKPUNS` K\YPUN[OL[YHUZP[PVUHSWLYPVK[OL)HURTH`\[PSPZL[OLJYLKP[PU[OLZLJ[PVU IHSHUJL[VKPZ[YPI\[LJHZO KP]PKLUKWH`TLU[Z[VVYKPUHY`ZOHYLOVSKLYZHZKLÄULK\UKLY[OL-PUHUJL(J[ (ZH[+LJLTILY [OL*VTWHU`OHZZ\ѝJPLU[JYLKP[PU[OLZLJ[PVU IHSHUJL[VWH`MYHURLKKP]PKLUKZV\[VMP[Z LU[PYLYL[HPULKLHYUPUNZ(U`ZLJ[PVU IHSHUJL^OPJOOHZUV[ILLU\[PSPZLKHZH[+LJLTILY PZKPZYLNHYKLK;OLYLHM[LY[OL)HURTH`KPZ[YPI\[LKP]PKLUKZV\[VMP[ZLU[PYLYL[HPULKLHYUPUNZ\UKLY[OL ZPUNSL[PLYZ`Z[LT Agrobank Annual Report 2013 177 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 31. COMMITMENTS AND CONTINGENCIES 31 December 31 December 2013 2012 RM’000 RM’000 Guarantee: .\HYHU[LLSL[[LYZPZZ\LK[V[OL 11,670 15,535 J\Z[VTLYZVM[OL)HUR Capital commitment (WWYV]LKHUKJVU[YHJ[LKMVY! *HWP[HSL_WLUKP[\YL *VTTP[TLU[VUSVHUZÄUHUJPUNHUKHK]HUJLZ 252,722 401,725 (WWYV]LKI\[UV[JVU[YHJ[LKMVY! *HWP[HSL_WLUKP[\YL *VTTP[TLU[VUSVHUZÄUHUJPUNHUKHK]HUJLZ 12,778 77,763 265,500 479,488 Contingent liabilities *LY[HPUSLNHSHJ[PVUZ[HRLUHNHPUZ[[OL)HUR ^P[OJVTWLUZH[PVUJSHPTZ 660,275 858,955 178 Agrobank Annual Report 2013 31. COMMITMENTS AND CONTINGENCIES (cont’d) (Z\TTHY`VM[OLZ[H[\ZVMTH[LYPHSSLNHSHJ[PVUZHNHPUZ[[OL)HURHYLHZMVSSV^Z! Case 1 ;OL)HURÄSLKHJSHPTHNHPUZ[HJ\Z[VTLY[VYLJV]LYV\[Z[HUKPUNÄUHUJPUNWYV]PKLK[V[OLJ\Z[VTLYVM HWWYV_PTH[LS`94 TPSSPVU;OLJ\Z[VTLYJV\U[LYZ\LK[OL)HURMVY94 TPSSPVUVU[OLWYLTPZL[OH[ [OLJ\Z[VTLYZ\ќLYLKSVZZLZK\L[V[OL)HUR»ZMHPS\YL[VYLSLHZL[OLM\UKZ[V[OLJ\Z[VTLY»ZHѝSPH[LK JVTWHU` ^OLU H SL[[LY VM VќLY OHZ HSYLHK` ILLU WYV]PKLK I` [OL )HUR ;OL HѝSPH[LK JVTWHU` ^HZ WSHUUPUN[V\ZL[OLM\UKZMYVT[OL)HURMVYP[ZWYVQLJ[^OPJOPZPU[LNYH[LK^P[O[OLWYVQLJ[WSHUULKI`[OL J\Z[VTLY+\L[V[OLMHPS\YLVM[OL)HUR[VYLSLHZL[OLZHPKM\UKZIV[OWYVQLJ[Z^LYLZ[HSSLKHUKSVZZLZ Z\ќLYLKI`[OLJ\Z[VTLYHUKP[ZHѝSPH[LKJVTWHU` ;OL HѝSPH[LK JVTWHU` VM [OL J\Z[VTLY [VVR JP]PS HJ[PVU HNHPUZ[ [OL )HUR ^OPJO ^HZ Z\IZLX\LU[S` KPZTPZZLKI`[OL/PNO*V\Y[VU(WYPS;OLKLJPZPVUVM[OL/PNO*V\Y[^HZ\WOLSKI`[OL*V\Y[ VM(WWLHSVU+LJLTILY;OLJ\YYLU[JHZL^HZZL[MVY[YPHSH[[OL/PNO*V\Y[VU 4HYJO HUK[OL[YPHS^PSSJVU[PU\LVU HUK4H` ;OL)HUR»ZZVSPJP[VYZHYLVM[OL]PL^[OH[[OL)HUROHZHUL]LUJOHUJLVMZ\JJLLKPUNPULZ[HISPZOPUNP[Z KLMLUJL[V[OLJV\U[LYJSHPT Case 2 ;OLIVYYV^LYÄSLKHSLNHSHJ[PVUHNHPUZ[[OL)HURZLLRPUNJVTWLUZH[PVUMVYKHTHNLZZ\ќLYLKYLZ\S[PUN MYVT[OL)HURYLZJPUKPUN[OLSVHUMHJPSP[`WYL]PV\ZS`HWWYV]LK;OL)HURÄSLKHJV\U[LYJSHPTHNHPUZ[[OL IVYYV^LY[VYLJV]LYV\[Z[HUKPUNSVHUZVMHWWYV_PTH[LS`94 TPSSPVU6U :LW[LTILY[OL/PNO *V\Y[NYHU[LKQ\KNTLU[PUMH]V\YVM[OLIVYYV^LYMVY[OLZ\TVM94 TPSSPVUHUKKPZTPZZLK[OL)HUR»Z JV\U[LYJSHPT/V^L]LYVU:LW[LTILY[OL*V\Y[VM(WWLHSOHKZL[HZPKL[OLKHTHNLZNYHU[LK HNHPUZ[[OL)HURHUKVYKLYLK[OH[[OLKHTHNLZILYLHZZLZZLKI`[OL:LUPVY(ZZPZ[HUJL9LNPZ[LYVM[OL /PNO*V\Y[;OL*V\Y[VM(WWLHSM\Y[OLYHSSV^LK[OL)HUR»ZJV\U[LYJSHPT;OL)HUR»ZHWWSPJH[PVUMVYSLH]L [VHWWLHS[V[OL-LKLYHS*V\Y[VU[OLPZZ\LVMSPHIPSP[`^HZHSSV^LKVU 1HU\HY` ;OL)HUR»ZZVSPJP[VYZHYLVM[OL]PL^[OH[[OL)HUROHZHUL]LUJOHUJLVMZ\JJLLKPUNPU[OLHWWLHSH[[OL -LKLYHS*V\Y[ Agrobank Annual Report 2013 179 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 31. COMMITMENTS AND CONTINGENCIES (cont’d) (Z\TTHY`VM[OLZ[H[\ZVMTH[LYPHSSLNHSHJ[PVUZHNHPUZ[[OL)HURHYLHZMVSSV^Z!JVU[»K Case 3 ;OLJ\Z[VTLYOHZÄSLKHSLNHSHJ[PVUHNHPUZ[[OL)HURZLLRPUNKHTHNLZPUSPL\VMZWLJPÄJWLYMVYTHUJL MYVT[OL)HURVU[OLNYV\UKZ[OH[[OL)HUROHZIYLHJOLKP[ZWYVTPZL[VNYHU[H[LYTSVHUVM94 TPSSPVU;OLJ\Z[VTLYPZJSHPTPUN[OH[HJVU[YHJ[L_PZ[LKIHZLKVU[OL3L[[LYVM6ќLYHUK(JJLW[HUJL ¸36(¹ PZZ\LK I` [OL )HUR KH[LK 1\S` :\IZLX\LU[ [V [OL 36( [OL J\Z[VTLY JOHUNLK P[Z PU[LU[PVUMVY[OL\[PSPZH[PVUVM[OLSVHUPL[V\[PSPZL[OLMHJPSP[`[VYLKLLTP[ZKLI[VISPNH[PVUZ^P[OV[OLY WHY[PLZ^OPJO[OL)HURKLLTLKHZTH[LYPHSHK]LYZLJOHUNL[V[OL[LYTZVM[OL36(OLUJL[OLYLM\ZHS[V KPZI\YZL[OLM\UKZ ;OL[YPHSVM[OLJHZLWYVJLLKLKVU -LIY\HY`^P[O[OLJVU[PU\H[PVUVM[OL[YPHSÄ_LKVU 4HYJO (WYPS (WYPSHUK (WYPS ;OL)HUR»ZZVSPJP[VYZHYLVM[OL]PL^[OH[[OL)HUROHZHUL]LUJOHUJLVMZ\JJLLKPUNPUKLMLUKPUN[OL JSHPT 32. RELATED PARTY DISCLOSURES a) Parent entity ;OL)HURPZH.V]LYUTLU[3PURLK*VYWVYH[PVU^P[OHSSZOHYLZOLSKI`[OL4PUPZ[Y`VM-PUHUJL 0UJVYWVYH[LKVUILOHSMVM[OL.V]LYUTLU[VM4HSH`ZPH(SSLU[P[PLZJVU[YVSSLKI`[OL.V]LYUTLU[VM 4HSH`ZPHTLL[[OLKLÄUP[PVUVMYLSH[LKWHY[PLZVM[OL)HUR b) Key management personnel compensation 2L`THUHNLTLU[WLYZVUULSHYL[OVZLWLYZVUZOH]PUNH\[OVYP[`HUKYLZWVUZPIPSP[`MVYWSHUUPUNKPYLJ[PUN HUKJVU[YVSSPUN[OLHJ[P]P[PLZVM[OL)HURKPYLJ[S`VYPUKPYLJ[S`PUJS\KPUNHU`KPYLJ[VY^OL[OLYL_LJ\[P]L VYV[OLY^PZLVM[OLIHUR9LT\ULYH[PVUWHPK[VRL`THUHNLTLU[WLYZVUULSVM[OL)HURPUJS\KLZ[OL MVSSV^PUN! 180 Agrobank Annual Report 2013 32. RELATED PARTY DISCLOSURES (cont’d) b) Key management personnel compensation (cont’d) P :OVY[[LYTLTWSV`LLILULÄ[ZPUJS\KLZHSHYPLZHUKHSSV^HUJLZ PP 7VZ[LTWSV`TLU[ILULÄ[ZPUJS\KL,TWSV`LL7YV]PKLU[-\UKº»,7-»»JVU[YPI\[PVUZ Post Employment Key management personnel Short Term )LULÄ[ 2013 2013 RM’000 RM’000 ,_LJ\[P]LKPYLJ[VY 5VUL_LJ\[P]LKPYLJ[VYZ :LUPVYTHUHNLTLU[ 4,767 474 2012 2012 RM’000 RM’000 ,_LJ\[P]LKPYLJ[VY 5VUL_LJ\[P]LKPYLJ[VYZ :LUPVYTHUHNLTLU[ 5,415 416 Agrobank Annual Report 2013 181 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 32. RELATED PARTY DISCLOSURES (cont’d) J ;YHUZHJ[PVUZ^P[ORL`THUHNLTLU[WLYZVUULS ;OLMVSSV^PUN[HISLWYV]PKLZ[OL[V[HSHTV\U[VM[YHUZHJ[PVUZ^OPJOOH]LILLULU[LYLKPU[V^P[ORL` THUHNLTLU[WLYZVUULSMVY[OLYLSL]HU[ÄUHUJPHS`LHY 31 December 31 December 2013 2012 RM’000 RM’000 +LWVZP[ 10 9 5VSVHUZOH]LILLUNYHU[LK[V[OLKPYLJ[VYZVM[OL)HUR K ;YHUZHJ[PVUZ^P[OYLSH[LKWHY[PLZ 2013 2012 Notes RM’000 RM’000 Restated Income .HWWPUN (i) 4HUHNLTLU[MLLZ (ii) *VTTPZZPVU (iii) 0U[LYLZ[WYVÄ[PUJVTLVUKLWVZP[Z WSHJLK^P[ONV]LYUTLU[SPURLKLU[P[PLZ ,_WLUZL 0U[LYLZ[WYVÄ[L_WLUZLVUKLWVZP[ZWSHJLKI` NV]LYUTLU[SPURLKLU[P[PLZ 0U[LYLZ[WYVÄ[L_WLUZLVUSVHUZJOLTLM\UK WHPKHUKWH`HISL[V[OL4PUPZ[Y`VM-PUHUJLHUK)54 ,TWSV`LL7YV]PKLU[-\UKº»,7-»» :VJPHS:LJ\YP[`6YNHUPZH[PVUº»:6*:6»» *VTWLUZH[PVUWHPK[VHZ[H[LSPURLKHNLUJ` 182 Agrobank Annual Report 2013 32. RELATED PARTY DISCLOSURES (cont’d) K ;YHUZHJ[PVUZ^P[OYLSH[LKWHY[PLZJVU[»K +LZJYPW[PVUMVYPUJVTL^P[OYLSH[LKWHY[PLZHYLHZMVSSV^Z! (i) 0UJVTLMYVT4PUPZ[Y`VM-PUHUJL0UJVYWVYH[LKMVY[OLPU[LYLZ[KPќLYLU[PHSIL[^LLUTHYRL[YH[LHUK Z\IZPKPZLKYH[LVUSVHUZKPZI\YZLKI`[OL)HURH[Z\IZPKPZLKYH[L (ii) -LLZLHYULKMVYTHUHNPUNVMNV]LYUTLU[M\UKZMVYSVHUKPZI\YZLTLU[WHPKI`4PUPZ[Y`VM (NYPJ\S[\YLHUK4PUPZ[Y`VM-PUHUJL (iii) *VTTPZZPVULHYULKHZIPSSZJVSSLJ[PVUHNLU[MYVT.V]LYUTLU[VM4HSH`ZPHJVU[YVSSLKLU[P[PLZ L 6\[Z[HUKPUNIHSHUJLZHYPZPUNMYVT[YHUZHJ[PVUZ^P[OYLSH[LKWHY[PLZ (TV\U[V^LK[V by related parties 31 December 31 December 2013 2012 RM’000 RM’000 Restated .V]LYUTLU[.YHU[Z6WLYH[PUN .V]LYUTLU[.YHU[Z3H\UJOPUN .V]LYUTLU[.YHU[Z-\UKZ 3VHUZJOLTLM\UK -VYLPNUL_JOHUNLYLJLP]HISLMYVT4PUPZ[Y`VM-PUHUJL 3VHU[VYLSH[LKWHY[PLZ +LWVZP[WSHJLTLU[^P[OYLSH[LKWHY[PLZ +LWVZP[MYVTYLSH[LKLU[P[PLZ M ;LYTZHUKJVUKP[PVUZ ;YHUZHJ[PVUZ^P[OYLSH[LKWHY[PLZ^LYLTHKLVU[LYTZLX\P]HSLU[[V[OVZL[OH[WYL]HPSPUHYT»ZSLUN[O [YHUZHJ[PVUZ Agrobank Annual Report 2013 183 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS A. FINANCIAL RISK MANAGEMENT (a) General risk management P 0U[YVK\J[PVUHUKV]LY]PL^ ;OL)HURLTIYHJLZYPZRTHUHNLTLU[HZHUPU[LNYHSJVTWVULU[VMP[ZI\ZPULZZVWLYH[PVUZHUK KLJPZPVUTHRPUNWYVJLZZ[VLUZ\YL[OH[VW[PT\TYL[\YUZHYLNLULYH[LK^P[OOPNOYLNHYK[V \UJLY[HPU[PLZPU[OLI\ZPULZZHUKTHYRL[LU]PYVUTLU[;OLYPZRTHUHNLTLU[LUJVTWHZZLZ L]LY`HZWLJ[VM[OLIHUR»ZI\ZPULZZHUKVWLYH[PVUZHZLHYS`HZWYVK\J[KL]LSVWTLU[Z[HNLI` WYV]PKPUNPUKLWLUKLU[PUW\[ZHUKYLSL]HU[]HS\H[PVUZJYLKP[L]HS\H[PVUHUKYL]PL^[YLHZ\Y`YLSH[LK WVY[MVSPVHZZLZZTLU[HUKYL]PL^ZPT\SH[PVUHUKYL]PL^VUI\ZPULZZJVU[PU\P[`HUKKPZHZ[LYYLJV]LY` L[J;OLPUW\[ZWYV]PKLKLUHISLZWYVK\J[KL]LSVWTLU[[LHTHUKV[OLYI\ZPULZZ\UP[Z[VHZZLZZ [OLYPZRYL[\YUVM[OLPYWYVWVZP[PVUZHUK[O\ZLUHISLZYPZRZHYLWYVWLYS`WYPJLKPUYLSH[PVU[VYL[\YU ;OL)HUROHZL_WVZ\YL[V[OLMVSSV^PUNYPZRZMYVTÄUHUJPHSPUZ[Y\TLU[Z! *YLKP[YPZR 3PX\PKP[`YPZR 4HYRL[YPZR 6WLYH[PVUHSYPZR :OHYPHOYPZR (ii) Risk management objectives ;OL)HUR»ZYPZRTHUHNLTLU[HJ[P]P[PLZOH]L[OLMVSSV^PUNHPTZ! 0KLU[PM`X\HU[PM`TP[PNH[LTVUP[VYHUKYLWVY[]HYPV\ZYPZRL_WVZ\YLZ" ,UZ\YLHSSYPZR[HRPUNHJ[P]P[PLZHYLJVUZPZ[LU[HUKPUSPUL^P[OWYLZJYPILKYPZRWVSPJPLZHUK YLN\SH[VY`MYHTL^VYRZ" *YLH[LHUKLUOHUJLZOHYLOVSKLYZ»]HS\LI`WY\KLU[HUKYVI\Z[TL[OVKVSVNPLZHUKWVSPJPLZ 184 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d.) A. FINANCIAL RISK MANAGEMENT (cont’d) (a) General risk management (cont’d) PPP 9PZRTHUHNLTLU[MYHTL^VYRJVU[»K ;OL)VHYKVM+PYLJ[VYZ¸;OL)VHYK¹PZYLZWVUZPISLMVY[OLLZ[HISPZOTLU[HUV]LYZPNO[VM[OL)HUR»Z YPZRTHUHNLTLU[MYHTL^VYR;OL)VHYKOHKLZ[HISPZOLK[OL9PZR4HUHNLTLU[*VTTP[[LLZH[ZLUPVY THUHNLTLU[HUK)VHYKSL]LS[VTVUP[VYL]HS\H[LZ[YH[LNPZLHUKKLSPILYH[LYPZRTHUHNLTLU[HJ[P]P[PLZ ^P[OPUYLZWLJ[P]LHYLHZ ;OL)HUROHZ[OLIYVHKYPZRTHUHNLTLU[MYHTL^VYR¸)94-¹[OH[LUJVTWHZZLZJYLKP[THYRL[HUK SPX\PKP[`VWLYH[PVUHSHUK:OHYPHOYPZRZHZWHY[VMP[ZYPZRNV]LYUHUJL;OLVIQLJ[P]LZVM[OL)94-HYL HZMVSSV^Z! ,UZ\YL[OH[HSSYPZRZMHJLKI`[OL)HURHYLPKLU[PÄLKTVUP[VYLKHUKHKLX\H[LS`THUHNLK" 7YV]PKL[OL4HUHNLTLU[HUK[OL)VHYK^P[OHIHUR^PKL]PL^VM[OL)HUR»ZYPZRZHUK[OLPYSPRLS` PTWHJ[LUHISPUN[OL)HUR[V[HRLZ[YH[LNPJHJ[PVUZ[VH]VPKVYV[OLY^PZLTP[PNH[LWV[LU[PHSSVZZLZ" 7YV]PKL4HUHNLTLU[HUK[OL)VHYK^P[OIHUR^PKL]PL^VMPU[LYYLSH[PVUZOPWZIL[^LLUYPZRZHUK [OLTHUULYPU^OPJOYLK\JPUNVULYPZRL_WVZ\YLTH`PUJYLHZLPTWHJ[HUV[OLY" 7YV]PKLHUL_WSPJP[SPURIL[^LLUYPZRHUKYL[\YU[OYV\NOHUPU[LNYH[LK]PL^VMYPZRL_WVZ\YLZHUK JVTTVUTLHZ\YLZ[VJVTT\UPJH[LHUKTLHZ\YL[OLTHNUP[\KLVML_WVZ\YLZVM[OL]HY`PUNYPZR [`WLZ" 7YV]PKLHTLHUZVMWYPVYP[PZPUN[OLT`YPHKVMYPZRZHUK[OLJVYYLZWVUKPUNTP[PNH[PUNJVU[YVS PUP[PH[P]LZ Agrobank Annual Report 2013 185 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (a) General risk management (cont’d) P] 9PZRNV]LYUHUJLMYHTL^VYR ;OL\S[PTH[LYLZWVUZPIPSP[`PUTHUHNPUNYPZRZSPLZ^P[O[OL)VHYK;OPZZOHSSPUJS\KLYLZWVUZPIPSP[`[V LUZ\YL[OH[YPZRTHUHNLTLU[MYHTL^VYRZHUKWVSPJPLZHYLLZ[HISPZOLKMVY[OL]HYPV\ZJH[LNVYPLZVM YPZR;OL)VHYKJHYYPLZV\[P[ZK\[PLZI`[OLLZ[HISPZOTLU[VMHWWYVWYPH[LJVTTP[[LLZHZILSV^MVY [OLV]LYZPNO[VMYPZRTHUHNLTLU[WYVJLZZLZ )VHYK9PZR4HUHNLTLU[*VTTP[[LL¸)94*¹ )VHYK*YLKP[*VTTP[[LL¸)**¹ )VHYK0U]LZ[TLU[*VTTP[[LL¸)0=*¹ )VHYK0;*VTTP[[LL¸)0;*¹ )VHYK(\KP[*VTTP[[LL¸)(*¹ ([ZLUPVYTHUHNLTLU[SL]LS[OLMVSSV^PUNJVTTP[[LLZOHKILLULZ[HISPZOLK[VV]LYZPNO[YPZR THUHNLTLU[HJ[P]P[PLZHUKYPZRL_WVZ\YLZ 4HUHNLTLU[9PZR*VTTP[[LL¸49*¹ (ZZL[3PHIPSP[`*VTTP[[LL¸(3*6¹ 4HUHNLTLU[(\KP[*VTTP[[LL¸4(*¹ (b) Credit risk P 5H[\YLVMJYLKP[YPZR ;OL)HUR»ZL_WVZ\YL[VJYLKP[YPZRPZWYPTHYPS`MYVTSLUKPUNÄUHUJPUNHJ[P]P[PLZ[VYL[HPSJVUZ\TLYZ TPJYVZTHSSHUKTLKP\TZPaLKLU[LYWYPZLZº»:4,Z»»HUKJVYWVYH[LJ\Z[VTLYZ3LUKPUNHJ[P]P[PLZ HYLN\PKLKI`PU[LYUHSJYLKP[WVSPJPLZHUKN\PKLSPULZ,]HS\H[PVU[LTWSH[LZOH]LILLUPU[YVK\JLKHUK JVU[PU\V\ZLUOHUJLTLU[OHZILLUTHKL[VJYLKP[L]HS\H[PVUHUKHWWYV]PUNWYVJLZZLZMVYLHJO J\Z[VTLY[`WLZ[VLUZ\YLHJJV\U[HIPSP[`HUKYLZWVUZPIPSP[`0U]LZ[TLU[PULX\P[PLZIVUKZHUKV[OLY THYRL[HISLZLJ\YP[PLZÄUHUJPHSPUZ[Y\TLU[Z[YHKPUNHUKV[OLYIHURPUNHJ[P]P[PLZ^OL[OLYP[PZJSHZZPÄLK HZIHURPUNIVVRVY[YHKPUNIVVRTH`HSZVL_WVZL[OL)HUR[VJYLKP[YPZRHUKJV\U[LYWHY[`JYLKP[YPZR 186 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) PP +LÄUP[PVUVMJYLKP[YPZR *YLKP[YPZRPZ[OLYPZRVMWV[LU[PHSSVZZK\L[VMHPS\YLVMVY\U^PSSPUNULZZVM[OLJ\Z[VTLYZVYJV\U[LYWHY[PLZ [VM\SÄS[OLPYJVU[YHJ[\HSÄUHUJPHSVISPNH[PVUZHZHUK^OLU[OL`HYPZL PPP 6IQLJ[P]LVMJYLKP[YPZRTHUHNLTLU[ ;OLNVHSVMJYLKP[YPZRTHUHNLTLU[PZ[VRLLWJYLKP[YPZRL_WVZ\YL[VHUHJJLW[HISLSL]LSHUK[V LUZ\YL[OLYL[\YUZHYLJVTTLUZ\YH[L^P[OYPZR P] 4HUHNLTLU[VMJYLKP[YPZR ;OLTHUHNLTLU[VMJYLKP[YPZRPZNV]LYULKI`[OLJYLKP[YPZRTHUHNLTLU[MYHTL^VYR^OPJOZL[ZV\[ [OL YPZR THUHNLTLU[ NV]LYUHUJL HUK PUMYHZ[Y\J[\YL YPZR THUHNLTLU[ WYVJLZZLZ HUK JVU[YVS YLZWVUZPIPSP[PLZ *YLKP[YPZRHZZLZZTLU[HSZVMVYTZWHY[VM[OLUL^WYVK\J[ZPNUVќWYVJLZZLZ[VLUZ\YL[OH[UL^ WYVK\J[ZJVTWS`^P[OHWWYVWYPH[LWVSPJPLZHUKN\PKLSPULZHUK[HRPUNPU[VJVUZPKLYH[PVUWV[LU[PHSYPZR L_WVZ\YLZWYPVY[V[OLPU[YVK\J[PVUVM[OLWYVK\J[ ;OL)HUR»ZJYLKP[YPZRTHUHNLTLU[MYHTL^VYRHKKYLZZLZ[OLMVSSV^PUNHYLHZ! 4HUHNLTLU[HUKX\HSP[`VMSVHUÄUHUJPUNHZZL[ZPUJS\KPUN[OLJYLKP[WVSPJPLZHUKN\PKLSPULZ JYLKP[HWWYV]HSJYLKP[YPZRTLHZ\YLTLU[HUKJVTWL[LUJ`VMJYLKP[WLYZVUULS 3VHU WYLZLY]H[PVU ^OPJO JV]LYZ JYLKP[ YL]PL^ WYVJLZZ LHYS` KL[LJ[PVU HUK THUHNLTLU[ VM ]\SULYHISLJYLKP[ZHUKYLJV]LY` *YLKP[JVUJLU[YH[PVUWVSPJ`MVYLќLJ[P]LWVY[MVSPVTHUHNLTLU[ Agrobank Annual Report 2013 187 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) P] 4HUHNLTLU[VMJYLKP[YPZRJVU[»K 7VSPJPLZWYVJLK\YLZHUKN\PKLSPULZMVYJYLKP[VWLYH[PVUZHYLKVJ\TLU[LKHUKHYLTHKLH]HPSHISL [OYV\NO[OL)HUR»ZPU[YHUL[WVY[HS;OLZLWVSPJPLZHUKWYVJLK\YLZHYLZ\IQLJ[[VYL]PL^HUKLUOHUJLTLU[ WLYPVKPJHSS`[VLUZ\YL[VLUZ\YLP[ZYLSL]HUJ`HUKPUSPUL^P[OI\ZPULZZKPYLJ[PVUZHUKLU]PYVUTLU[ ;OL4HUHNLTLU[9PZR*VTTP[[LLº»49*»»Z\WWVY[Z[OL)VHYK9PZR4HUHNLTLU[*VTTP[[LL º»)94*»»PUJYLKP[YPZRTHUHNLTLU[V]LYZPNO[;OL49*YL]PL^Z[OL)HUR»ZJYLKP[YPZRTHUHNLTLU[ MYHTL^VYRHUKWVSPJPLZHSPNULKJYLKP[YPZRTHUHNLTLU[^P[OI\ZPULZZZ[YH[LNPLZHUKWSHUUPUN TVUP[VYPUNJYLKP[WYVÄSLHUKWVY[MVSPVZHUKYLJVTTLUKULJLZZHY`HJ[PVUZ[VLUZ\YL[OH[JYLKP[YPZRZ YLTHPU^P[OPU[VSLYHUJLSL]LS ] 4LHZ\YLTLU[VMJYLKP[YPZR *YLKP[YPZRJVUJLU[YH[PVUPUSVHUZÄUHUJPUNHUKHK]HUJLZ *VUJLU[YH[PVUZVMJYLKP[YPZRHYLTVUP[VYLKI`LJVUVTPJHJ[P]P[PLZ\UKLY[OLHNYPJ\S[\YLZ\IZLJ[VYZ ;OL[HISLILSV^ZL[V\[[OLIYLHRKV^UVMJYLKP[L_WVZ\YLI`HNYPJ\S[\YLZ\IZLJ[VYHZMVSSV^Z! 2013 2012 RM’000 RM’000 Restated Sector: Support Crops 3P]LZ[VJR -PZOLY` -VYLZ[Y` 6[OLYHNYPJ\S[\YHSIHZLKWYVJLZZPUN 6,393,333 6,493,123 188 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) ] 4LHZ\YLTLU[VMJYLKP[YPZRJVU[»K *VSSH[LYHSWVZP[PVUPUSVHUZÄUHUJPUNHUKHK]HUJLZ *YLKP[MHJPSP[PLZHYLNYHU[LKVU[OLIHZPZVM[OLJ\Z[VTLY»ZJYLKP[Z[HUKPUNWYVQLJ[]PHIPSP[`HUK YLWH`TLU[JHWHJP[`HZWLY[OL)HUR»ZJYLKP[WVSPJ`/V^L]LYK\L[V[OLUH[\YLVMP[ZÄUHUJPUN[OL )HURNLULYHSS`YLX\PYLZJVSSH[LYHSHNHPUZ[SVHUZÄUHUJPUNHUKHK]HUJLZ[VJ\Z[VTLYZPU[OLMVYTVM JOHYNLZV]LYWYVWLY[`V[OLYYLNPZ[LYLKZLJ\YP[PLZV]LYHZZL[ZHUKN\HYHU[LLZ,Z[PTH[LZVMMHPY]HS\L HYLIHZLKVU[OL]HS\LVMJVSSH[LYHSHZZLZZLKH[[OL[PTLVMIVYYV^PUNHUKPZYL]HS\LKVUJLPU[^V `LHYZVY^OLUHSVHUÄUHUJPUNPZPTWHPYLK ;OLTHPU[`WLZVMJVSSH[LYHSOLSKI`[OL)HUR[VTP[PNH[LJYLKP[YPZRHYLHZMVSSV^Z! P 7YVQLJ[3VHUZÄUHUJPUN¶JOHYNLZV]LYSHUKI\PSKPUNZWSHU[HUKTHJOPULY`ÄZOPUN]LZZLSZ V^ULYZOPWJSHPTV]LY]LOPJSLZÄ_LKKLWVZP[ZHUKWSLKNLZV]LYZOHYLZHUKTHYRL[HISLZLJ\YP[PLZ PP 9L[HPSSVHUZ¶JOHYNLZV]LYSHUKHUKÄ_LKKLWVZP[ZMVYJLY[HPU[`WLZVMSVHU Agrobank Annual Report 2013 189 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) ] 4LHZ\YLTLU[VMJYLKP[YPZRJVU[»K *VSSH[LYHSWVZP[PVUPUSVHUZÄUHUJPUNHUKHK]HUJLZJVU[»K ;OL[HISLILSV^ZL[V\[[OLJVSSH[LYHSWVZP[PVUVML_WVZ\YLI`Z[H[\ZVMYLWH`TLU[! Financial LɈLJ[VM Secured Unsecured Total collateral* RM’000 RM’000 RM’000 % 2013 Current 7HZ[K\LI\[UV[PTWHPYLK 0TWHPYLK 2,882,578 3,510,755 6,393,333 95.5 2012 (restated) Current 7HZ[K\LI\[UV[PTWHPYLK 0TWHPYLK 3,405,503 3,087,620 6,493,123 67.1 )HZLKVUX\HU[PÄJH[PVUVM[OLL_[LU[[V^OPJOJVSSH[LYHSHUKV[OLYJYLKP[LUOHUJLTLU[ZTP[PNH[L JYLKP[YPZR 190 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) *YLKP[X\HSP[`VMNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZ Impaired loans ;OLIYLHRKV^UVM[OLNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZPUKP]PK\HSS`HZZLZZLKHZPTWHPYLKI` ZLJ[VYZHUK[OLMHPY]HS\LVMYLSH[LKJVSSH[LYHSOLSKI`)HURHZZLJ\YP[`HYLHZMVSSV^Z! Gross individually Individual Financial impaired impairment LɈLJ[VM loans HSSV^HUJL collateral* RM’000 RM’000 % 2013 Sectors: Crops -PZOLY` =HS\LHKKLK -VYLZ[Y` 3P]LZ[VJR Support 321,638 237,264 28.1 )HZLKVUX\HU[PÄJH[PVUVM[OLL_[LU[[V^OPJOJVSSH[LYHSHUKV[OLYJYLKP[LUOHUJLTLU[ZTP[PNH[L JYLKP[YPZR Agrobank Annual Report 2013 191 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) *VSSH[LYHSWVZP[PVUPUSVHUZÄUHUJPUNHUKHK]HUJLZJVU[»K *YLKP[X\HSP[`VMNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZJVU[»K Impaired loans (cont’d) Gross individually Individual Financial impaired impairment LɈLJ[VM loans HSSV^HUJL collateral* RM’000 RM’000 % 2012 6HFWRUV Crops -PZOLY` =HS\LHKKLK -VYLZ[Y` 3P]LZ[VJR Support 313,321 207,777 35.6 )HZLKVUX\HU[PÄJH[PVUVM[OLL_[LU[[V^OPJOJVSSH[LYHSHUKV[OLYJYLKP[LUOHUJLTLU[ZTP[PNH[L JYLKP[YPZR 192 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) *VSSH[LYHSWVZP[PVUPUSVHUZÄUHUJPUNHUKHK]HUJLZJVU[»K *YLKP[X\HSP[`VMNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZJVU[»K Impaired loans (cont’d) ;OLIYLHRKV^UVMJVSSLJ[P]LPTWHPYTLU[HSSV^HUJLMVYSVHUZÄUHUJPUNHUKHK]HUJLZI`ZLJ[VYZHYL HZMVSSV^Z! 2013 2012 RM’000 RM’000 Sectors: Crops -PZOLY` =HS\LHKKLK -VYLZ[Y` 3P]LZ[VJR 4PJYV*YLKP[4<:; Support :\WWVY[(Y9HOU\ :\WWVY[(NYVJHZO -\UKMVY4PUPZ[Y`VM@V\[OHUK:WVY[Z¸+2):¹ ,U[YLWYLUL\Y:JOLTLMVY.YHK\H[LZ¸:<;2:¹ :WLJPHS-\UKMVY;LYLUNNHU\-PZOLY`¸+2:7¹ 52,( 4PJYV,:7 300,382 408,770 Agrobank Annual Report 2013 193 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) *VSSH[LYHSWVZP[PVUPUSVHUZÄUHUJPUNHUKHK]HUJLZJVU[»K *YLKP[X\HSP[`VMNYVZZSVHUZÄUHUJPUNHUKHK]HUJLZJVU[»K Impaired loans (cont’d) 2013 2012 RM’000 RM’000 *VSSLJ[P]LPTWHPYTLU[HSSV^HUJLMVYM\SS`ZLJ\YLKSVHUZÄUHUJPUN Sectors: Crops -PZOLY` =HS\LHKKLK -VYLZ[Y` 3P]LZ[VJR Support 5,533 8,928 *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL 305,915 417,698 Credit risk in investment activities ;OLJYLKP[YPZRTHUHNLTLU[HWWYVHJOMVYPU]LZ[TLU[HJ[P]P[PLZPZWYPTHYPS`KLSPILYH[LKH[[OL)VHYK 0U]LZ[TLU[*VTTP[[LL¸)0=*¹0U[OLJHZLVMPU]LZ[TLU[WVY[MVSPV[OLZL[[PUNVMJYLKP[SPTP[ZPZKVUL HUKYLN\SHYS`YL]PL^LKI`4HYRL[9PZR4HUHNLTLU[+LWHY[TLU[¸494+¹HZ[OLTPKKSLVѝJLMVY [YLHZ\Y`VWLYH[PVUZ=HYPV\ZJYLKP[SPTP[ZVUPU]LZ[TLU[L_WVZ\YLZHYLWYVWVZLK[V[OL4HUHNLTLU[ 9PZR*VTTP[[LL¸49*¹MVYLUKVYZLTLU[HUKLZJHSH[LK[V)94*VY)VHYKMVYHWWYV]HS9LWVY[ VUJVTWSPHUJLVM]HYPV\ZPU]LZ[TLU[L_WVZ\YLSPTP[ZHYLKVULI`494+^OPJOPZWYLZLU[LKHUK KLSPILYH[LKH[(ZZL[3PHIPSP[`*VTTP[[LL¸(3*6¹VUTVU[OS`IHZPZ 194 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) Credit risk in investment activities (cont’d) ;OL)HUR»ZPU]LZ[TLU[WVSPJ`Z[PW\SH[LZ[OLTPUPT\TPU]LZ[TLU[NYHKLMVYKLI[ZLJ\YP[PLZ[`WLZ VMWLYTPZZPISL[YHUZHJ[PVUZL_WVZ\YLSPTP[ZMVYZPUNSLJ\Z[VTLYJV\U[LYWHY[`JYLKP[YH[PUN PUK\Z[Y`ZLJ[VYHUKYPZRSL]LSOPNOTLKP\TSV^0UHKKP[PVU[OL)HUROHZHSZVZL[PU[LYIHUR SPTP[ZMVYWSHJLTLU[Z^OPJOHYLYL]PL^LKVUYLN\SHYIHZPZ[VTP[PNH[LJVUJLU[YH[PVUSPTP[ZPUP[Z investment portfolio. 0U]LZ[TLU[WVY[MVSPVJVUJLU[YH[PVU ;OLWVY[MVSPVWYVÄSLPZHZMVSSV^Z! RM’000 Composition (%) +LWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ *VYWVYH[LIVUKZ *VTTLYJPHSWHWLYZ 4.:.00 ,X\P[`ZLJ\YP[PLZ Carrying amount at 31 December 2013 3,648,054 100 *VYWVYH[LIVUKZ *VTTLYJPHSWHWLYZ 4.:.00 ,X\P[`ZLJ\YP[PLZ Carrying amount at 31 December 2012 3,459,062 100 Agrobank Annual Report 2013 195 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) Credit risk in investment activities (cont’d) *YLKP[X\HSP[`VMPU]LZ[TLU[ZLJ\YP[PLZ ;OLMVSSV^PUN[HISLWYLZLU[Z[OL)HUR»ZL_WVZ\YL[VJYLKP[YPZRVMÄUHUJPHSPUZ[Y\TLU[ZHUHS`ZLK I`YH[PUNZMYVTL_[LYUHSJYLKP[YH[PUNHNLUJPLZ! AFS securities 2013 2012 Ratings Non-money Non-money market market instruments instruments RM’000 RM’000 Corporate bonds .V]LYUTLU[.\HYHU[LLK¸..¹ 8\HZP.V][(((IN (((((IN (((IN A ))) TOTAL 2,283,604 1,763,986 196 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) Credit risk in investment activities (cont’d) *YLKP[X\HSP[`VMPU]LZ[TLU[ZLJ\YP[PLZJVU[»K ;OLMVSSV^PUN[HISLWYLZLU[Z[OL)HUR»ZL_WVZ\YL[VJYLKP[YPZRVMÄUHUJPHSPUZ[Y\TLU[ZHUHS`ZLKI`YH[PUNZMYVT L_[LYUHSJYLKP[YH[PUNHNLUJPLZ! HTM securities Ratings 2013 2012 Non-money Money Non-money Money market market market market instruments instruments Total instruments instruments Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Corporate bonds .. 8\HZP.V][(((IN (((((IN (((IN Commercial papers 74 TOTAL 19,901 32,978 52,879 9,955 42,368 52,323 Agrobank Annual Report 2013 197 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk P 5H[\YLVMSPX\PKP[`YPZR 3PX\PKP[`YPZRYLSH[LZ[V[OLHIPSP[`[VTHPU[HPUZ\MMPJPLU[SPX\PKHZZL[Z[VTLL[J\YYLU[HUKM\[\YL ÄUHUJPHSJVTTP[TLU[ZHUKVISPNH[PVUZHU[PJPWH[LKVY\UHU[PJPWH[LK^OLU[OL`MHSSK\L^P[OV\[ PUJ\YYPUN\UHJJLW[HISLSVZZLZ 3PX\PKP[`YPZRTH`HYPZL^OLU[OLYLPZHTPZTH[JOIL[^LLUM\UKPUNHNHPUZ[SLUKPUN^P[OPUWYLKL[LYTPULK [PTLI\JRL[Z;OLTPZTH[JOLZTH`SLHK[V[OLPUHIPSP[`MVY)HUR[VM\SÄSP[ZJVU[YHJ[\HSVISPNH[PVUZ ^OLU[OL`MHSSK\L(ZZ\JO[OL)HUROHZ[VTHPU[HPUHWVY[PVUVMSPX\PKHZZL[ZPU[LYTVMJHZOJHZO LX\P]HSLU[ZHUKTHYRL[HISLZLJ\YP[PLZ[VTH[JOTH[\YP[`I\JRL[Z PP +LÄUP[PVUVMSPX\PKP[`YPZR 3PX\PKP[`YPZRPZKLÄULKHZ[OLPUHIPSP[`VM[OL)HUR[VTLL[[PTLS`WH`TLU[VUHU`VMP[ZÄUHUJPHS VISPNH[PVUZ[VJ\Z[VTLYZVYJV\U[LYWHY[PLZ^OLU[OL`MHSSK\L;OLSPX\PKP[`YPZRPZKP]PKLKPU[V[^V JVTWVULU[ZHZMVSSV^Z! -\UKPUNSPX\PKP[`YPZR -\UKPUNSPX\PKP[`YPZRHYPZLZ^OLU[OL)HURPZ\UHISL[VTLL[P[ZÄUHUJPHSVISPNH[PVUZ[OH[HYPZL MYVT^P[OKYH^HSZVMKLWVZP[ZYLWH`TLU[ZVMW\YJOHZLKM\UKZH[TH[\YP[`KH[LZL_[LUZPVUVM JYLKP[VY^VYRPUNJHWP[HSULLKZ 4HYRL[SPX\PKP[`YPZR 4HYRL[SPX\PKP[`YPZRPZ[OLYPZR[OH[[OL)HURPZ\UHISL[VVYJHUUV[LHZPS`\U^PUKVYVќZL[H WHY[PJ\SHYWVZP[PVUH[VYULHY[OLWYL]PV\ZTHYRL[WYPJLILJH\ZLVMPUHKLX\H[LTHYRL[KLW[OVY ILJH\ZLVMKPZY\W[PVUZPU[OLTHYRL[WSHJLJH\ZLKI`[OLJOHUNLPUTHYRL[ZLU[PTLU[VYK\L[V HZWLJPÄJL]LU[VYZLYPLZVML]LU[Z 198 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk (cont’d) PPP 4HUHNLTLU[VMSPX\PKP[`YPZR ;OL)VHYKZOHSSHWWYV]LHSSWVSPJPLZPUYLSH[PVU[VSPX\PKP[`YPZRTHUHNLTLU[^OPJOZOHSSILYL]PL^LK H[SLHZ[VUHUU\HSIHZPZ;OL)VHYKTH`KLSLNH[LWHY[VMP[ZH\[OVYP[`HUKYLZWVUZPIPSP[`[VP[ZZ\I JVTTP[[LL)94*[VV]LYZLL[OLLќLJ[P]LULZZHUKJVTWSPHUJLVM[OVZLWVSPJPLZHZ^LSSHZHWWYV]LUL^ HUKYL]PZLKWVSPJPLZ :LUPVYTHUHNLTLU[PZYLZWVUZPISL[VTVUP[VYHUKV]LYZLLSPX\PKP[`YPZRL_WVZ\YLZ[OYV\NO[OL(ZZL[ 3PHIPSP[`*VTTP[[LL¸(3*6¹\ZPUNWYPTHY`[VVSZZ\JOHZTH[\YP[`TPZTH[JOHUHS`ZPZM\UKPUNNHW TH_PT\TJ\T\SH[P]LV\[ÅV^ZHUKM\UKPUNJVUJLU[YH[PVU\ZPUNPU[LYUHSHZ^LSSHZTHYRL[^PKL PUMVYTH[PVU[VHKKYLZZWVZZPISLSPX\PKP[`WYVISLTZ;OL)HURV]LYZLLZP[ZZ[H[LTLU[VMÄUHUJPHS WVZP[PVUZ[Y\J[\YLHUKWSHJLZJVU[YVSZ^P[OPUWY\KLU[SPTP[ZHUKI\JRL[PUN[VTHUHNLYPZRZHYPZPUN MYVTTPZTH[JOLZVMTH[\YP[PLZHJYVZZ[OLÄUHUJPHSWVZP[PVUZ[Y\J[\YLHZ^LSSHZMYVTL_WVZ\YLZVM \UKYH^UJVTTP[TLU[ZHUKV[OLYJVU[PUNLU[VISPNH[PVUZ ;OLZ[Y\J[\YLVMZ[H[LTLU[VMÄUHUJPHSWVZP[PVUPZTHUHNLKHZZ\JO[VTHPU[HPUKP]LYZPÄJH[PVUHUK[V TPUPTPZLM\UKPUNJVUJLU[YH[PVUHZ^LSSHZTHPU[HPUPUNOPNOX\HSP[`VMSPX\LMPHISLHZZL[Z;OL TPZTH[JOLZPU[OLÄUHUJPHSWVZP[PVUZ[Y\J[\YLWHY[PJ\SHYS`PU[OLSLUKPUNHNHPUZ[M\UKPUNWVY[MVSPVVY 3VHU-PUHUJPUN+LWVZP[9H[PV¸3+9-+9¹PZYLWVY[LKTVU[OS`[V[OL(3*6;OL(3*6MVYT\SH[LZ HUKKL[LYTPULZZ[YH[LNPLZ[VTPUPTPZL[OLTPZTH[JOIL[^LLUSLUKPUNHUKM\UKPUNHJ[P]P[PLZIL[^LLU HZZL[ZHUKSPHIPSP[PLZIV[OMVY*VU]LU[PVUHSHUK0ZSHTPJIVVRZHZ^LSSHZ*VTTLYJPHSHUK*VUJLZZPVUHY` IVVRZHUK[OL)HURHZH^OVSL Agrobank Annual Report 2013 199 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk (cont’d) PPP 4HUHNLTLU[VMSPX\PKP[`YPZRJVU[»K 3PX\PKP[`WVZP[PVUHYLTVUP[VYLKI`4HYRL[9PZR4HUHNLTLU[+LW HY[TLU[¸494+¹^OPJO YLWVY[[V*OPLM9PZR6ѝJLY¸*96¹;OLSPTP[MVYLHJOI\JRL[PZTVUP[VYLKKHPS`HUKHU` ZPNUPÄJHU[ ZOVY[MHSS VY L_JLZZ ^PSS IL HKKYLZZLK ^P[OPU Z[PW\SH[LK [PTLMYHTL [V TP[PNH[L SPX\PKP[` YPZR L_WVZ\YL I` [OL )HUR ;OL )HUR»ZSPX\PKP[` WVZP[PVU PZ YLWVY[LK [V (3*6 H[ SLHZ[VUTVU[OS`IHZPZ;YLHZ\Y`+LWHY[TLU[¸;+¹PZYLZWVUZPISL[VTHUHNL[OLKH`[V KH` SPX\PKP[` YLX\PYLTLU[Z HUK M\UKPUN Z[YH[LN` ;+ PZ PU]VS]LK PU TVIPSPZPUN M\UKZ MYVT JVYWVYH[LZ[OYV\NO4VUL`4HYRL[+LZRZHUKWSHJLV\[[OLM\UKHZPU]LZ[TLU[PUTVUL` THYRL[HZ^LSSHZJHWP[HSTHYRL[PUZ[Y\TLU[Z P] 4LHZ\YLTLU[VMSPX\PKP[`YPZR ;OL SPX\PKP[` YPZR THUHNLTLU[ VM [OL )HUR PZ HSPNULK ^P[O [OL 5L^ 3PX\PKP[` -YHTL^VYR ¸53-¹PZZ\LKI`)54HUKPZTLHZ\YLKHUKTHUHNLKIHZLKVUWYVQLJ[LKJHZOÅV^Z0U HKKP[PVU[VLUZ\YPUNJVTWSPHUJL^P[O[OL53-[OL)HURZTHPU[HPUZHSPX\PKP[`JVTWSPHUJL I\ќLY[VTLL[HU`\UL_WLJ[LKJHZOV\[ÅV^Z;OLTLHZ\YLTLU[VMSPX\PKP[`YPZRPZKVUL [OYV\NOÄUHUJPHSWVZP[PVUWYVÄSPUN\ZPUNWYLKL[LYTPULK[PTLI\JRL[Z;OLL_WVZ\YLSPTP[ZMVY LHJOI\JRL[PUWHY[PJ\SHY^P[OPUHVUL`LHYIHUKPZJSVZLS`TVUP[VYLKHUKHUHS`ZLK[VLUZ\YL [OH[[OL)HUROHZZ\ѝJPLU[JHZOHUKSPX\LÄHISLHZZL[Z[VTLL[JVU[YHJ[\HSHUKILOH]PV\YHS TH[\YP[PLZJVTTP[TLU[ZHUK[VKL[LYTPUL[OLJH\ZLZHUK^H`Z[VPTWYV]L[OLNHWZ;OL )HURTHPU[HPUZZ\ѝJPLU[SPX\PKHZZL[ZTPUPT\T VM[V[HSKLWVZP[[VTLL[JVU[YHJ[\HS HUKILOH]PV\YHSTH[\YP[PLZHUKJVTTP[TLU[Z\W[VVUL^LLR[LU\YL-VY\W[VVULTVU[O I\JRL[[OL)HURTHPU[HPUZSPX\PKHZZL[ZVMH[SLHZ[ VM[V[HSKLWVZP[[VTLL[JVU[YHJ[\HS HUKILOH]PV\YHSTH[\YP[PLZHUKJVTTP[TLU[Z^OLU[OL`MHSSK\L 200 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk (cont’d) ] *VU[PUNLUJ`M\UKPUNWSHU¸*-7¹ ;OL )HUR OHZ H *VU[PUNLUJ` -\UKPUN 7SHU º»*-7»»PU WSHJL [V KLHS ^P[O SPX\PKP[` JYPZPZ ZP[\H[PVU ;OL *-7 LUHISLZ 4HUHNLTLU[ [V THRL [PTLS` HUK ^LSSPUMVYTLK KLJPZPVU PU THUHNPUNHU`SPX\PKP[`JYPZPZJH\ZLKI`[OL)HUR»ZZWLJPÄJYPZRHK]LYZLWVZP[PVUZHZ^LSS HZ\UMH]V\YHISLTHYRL[KL]LSVWTLU[Z;OL)HURZL[ZV\[LHYS`^HYUPUNPUKPJH[VYZ[OYV\NO ]HYPV\Z[YPNNLYZJYPZPZLZJHSH[PVUWYVJLZZJYPZPZTHUHNLTLU[[LHTHUKM\UKPUNZ[YH[LNPLZ [VTP[PNH[LSPX\PKP[`JYPZPZZP[\H[PVUZ;OL*-7PZ[LZ[LKHUKYL]PL^LKYLN\SHYS`[V\WKH[L SH[LZ[WVZP[PVUHUKTH[[LYZPUYLSH[PVU[VSPX\PKP[`YPZRWYVÄS LZVM[OL)HUR (vi) Stress testing on liquidity risk (Z WHY[ VM SPX\PKP[` THUHNLTLU[ SPX\PKP[` YPZR L_WVZ\YLZ HYL HSZV TLHZ\YLK [OYV\NO M\UKPUN JVUJLU[YH[PVU SVHUÄUHUJPUN KLWVZP[ YH[PVZ JHZO HUK SPX\PK HZZL[ YH[PV Z[YLZZ [LZ[PUNPZJVUK\J[LK[VX\HU[PM`[OL^VYZ[JHZLZJLUHYPVVMSPX\PKP[`WVZP[PVUVM[OL)HUR IHZLKVUKLWVZP[Y\UVќTHYRL[JYPZPZZOVJRJHWP[HSLYVZPVUHUKULNH[P]LW\ISPJP[`;OL )HURLTWOHZPZLZVU[OLPTWVY[HUJLVMSV^JVZ[Z[HISLHUKYL[HPSKLWVZP[ZHZ[OLWYPTHY` ZV\YJLVMM\UKZ[VÄUHUJLP[ZSLUKPUNHJ[P]P[PLZPUHKKP[PVUZ[VJVYWVYH[LHUKV[OLYOPNOJVZ[ KLWVZP[ Agrobank Annual Report 2013 201 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity Risk (cont’d) 4H[\YP[`HUHS`ZPZVMÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZIHZLKVUJVU[YHJ[LKKPZJV\U[LKJHZOÅV^Z! Non- 1-3 3 - 6 6 - 12 1 - 5 ZWLJPÄJ <1 month months months months years >5 years maturity Total 2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Financial assets Cash and short [LYTM\UKZ +LWVZP[Z^P[OÄUHUJPHS institutions 0U]LZ[TLU[ZLJ\YP[PLZ 3VHUÄUHUJPUNHUK advances Other assets 1,523,266 919,873 321,712 372,274 2,509,873 5,026,258 194,550 10,867,806 202 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity Risk (cont’d) 4H[\YP[`HUHS`ZPZVMÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZIHZLKVUJVU[YHJ[LKKPZJV\U[LKJHZOÅV^Z!JVU[»K Non- 1-3 3 - 6 6 - 12 1 - 5 ZWLJPÄJ <1 month months months months years >5 years maturity Total 2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Financial liabilities +LWVZP[MYVT customers Saving giro -P_LKKLWVZP[Z 3VHUZJOLTLM\UK .V]LYUTLU[ )54 Other liabilities 6[OLYWH`HISLZ .V]LYUTLU[NYHU[Z 7HKK`JYLKP[ NYH[\P[`ZJOLTL 3,404,041 768,384 393,569 2,084,872 1,025,275 803,012 310,171 8,789,324 Net maturity mismatch (1,880,775) 151,489 (71,857) (1,712,598) 1,484,598 4,223,246 (115,621) 2,078,482 Agrobank Annual Report 2013 203 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity Risk (cont’d) 4H[\YP[`HUHS`ZPZVMÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZIHZLKVUJVU[YHJ[LKKPZJV\U[LKJHZOÅV^Z!JVU[»K Non- 1-3 3 - 6 6 - 12 1 - 5 ZWLJPÄJ <1 month months months months years >5 years maturity Total 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Financial assets Cash and short [LYTM\UKZ 0U]LZ[TLU[ZLJ\YP[PLZ 3VHUÄUHUJPUNHUK advances Other assets 2,158,384 771,285 373,015 606,761 1,816,693 5,157,372 366,132 11,249,642 204 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity Risk (cont’d) 4H[\YP[`HUHS`ZPZVMÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZIHZLKVUJVU[YHJ[LKKPZJV\U[LKJHZOÅV^Z!JVU[»K Non- 1-3 3 - 6 6 - 12 1 - 5 ZWLJPÄJ <1 month months months months years >5 years maturity Total 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Financial liabilities +LWVZP[MYVT customers :H]PUNNPYV -P_LKKLWVZP[Z 3VHUZJOLTLM\UK .V]LYUTLU[ )54 Others Other liabilities 6[OLYWH`HISLZ .V]LYUTLU[NYHU[Z 7HKK`JYLKP[ NYH[\P[`ZJOLTL 4,834,844 741,517 679,113 867,813 87,351 1,618,988 292,720 9,122,346 Net maturity mismatch (2,676,460) 29,768 (306,098) (261,052) 1,729,342 3,538,384 73,412 2,127,296 Agrobank Annual Report 2013 205 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity Risk (cont’d) 4H[\YP[`HUHS`ZPZVMÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZIHZLKVUJVU[YHJ[LK\UKPZJV\U[LKJHZOÅV^Z!JVU[»K Non- 1-3 3 - 6 6 - 12 1 - 5 ZWLJPÄJ <1 month months months months years >5 years maturity Total 2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Financial liabilities +LWVZP[MYVT customers :H]PUNNPYV -P_LKKLWVZP[Z 3VHUZJOLTLM\UK .V]LYUTLU[ )54 Other liabilities 6[OLYWH`HISLZ .V]LYUTLU[NYHU[Z 7HKK`JYLKP[ NYH[\P[`ZJOLTL 4,813,643 930,277 61,887 36,180 734,963 1,992,372 310,171 8,879,493 206 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity Risk (cont’d) 4H[\YP[`HUHS`ZPZVMÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZIHZLKVUJVU[YHJ[LK\UKPZJV\U[LKJHZOÅV^Z!JVU[»K Non- 1-3 3 - 6 6 - 12 1 - 5 ZWLJPÄJ <1 month months months months years >5 years maturity Total 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Financial liabilities +LWVZP[MYVT customers :H]PUNNPYV -P_LKKLWVZP[Z 3VHUZJOLTLM\UK .V]LYUTLU[ )54 Others Other liabilities 6[OLYWH`HISLZ .V]LYUTLU[NYHU[Z 7HKK`JYLKP[ NYH[\P[`ZJOLTL 5,122,271 219,850 514,260 688,005 1,270,062 1,278,231 292,720 9,385,399 Agrobank Annual Report 2013 207 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk P 5H[\YLVMTHYRL[YPZR 4HYRL[ YPZRZ HYPZLZ MYVT ]VSH[PSP[PLZ PU PU[LYLZ[ YH[LZ LX\P[` WYPJLZ JVTTVKP[` WYPJLZ JYLKP[ ZWYLHKZHUKMVYLPNUL_JOHUNLYH[LZ^OPJOPUOLYLU[PU[OLPU]LZ[TLU[WVY[MVSPV;OLTHYRL[YPZR PU[OL)HURZOHSSYLSH[L[VHSSÄUHUJPHSHZZL[ZHUKSPHIPSP[PLZOLSKI`[OL)HURMVYPU]LZ[TLU[HZ ^LSS HZ [YHKPUN W\YWVZLZ PU [OL IHURPUN IVVR (Z [OL )HUR»ZPU]LZ[TLU[ WVY[MVSPV MVJ\Z VU PU[LYLZ[WYVÄ[YH[LILHYPUNHZZL[HUKSPHIPSP[`PU[LYLZ[YH[LTH`WVZLTHQVYHUKZPNUPÄJHU[YPZR[V PU]LZ[TLU[WVY[MVSPVVM[OL)HUR PP +LÄUP[PVUVMTHYRL[YPZR 4HYRL[ YPZR PZ KLÄULK HZ [OL YPZR VM SVZZLZ PU 6U HUK 6ќ )HSHUJL :OLL[ WVZP[PVUZ HYPZPUN MYVT\UL_WLJ[LKTV]LTLU[ZPUTHYRL[WYPJLZK\L[V]VSH[PSP[`PU PU[LYLZ[YH[LZLX\P[`WYPJLZ JVTTVKP[`WYPJLMVYLPNUL_JOHUNLYH[LZL[J PPP 4HUHNLTLU[VMTHYRL[YPZR ;OLIVHYKZOHSSHWWYV]LHSSWVSPJPLZYLSH[LK[VTHYRL[YPZRTHUHNLTLU[^OPJOZOHSSILYL]PL^LK H[SLHZ[VUHUU\HSIHZPZ;OL)VHYKTH`KLSLNH[LWHY[VMP[ZH\[OVYP[`HUKYLZWVUZPIPSP[`[VP[ZZ\I JVTTP[[LL)94*HZ^LSSHZ)0=*[VV]LYZLL[OLLќLJ[P]LULZZHUKJVTWSPHUJLVM[OVZLWVSPJPLZ HZ^LSSHZHWWYV]LUL^HUKYL]PZLKWVSPJPLZ([ZLUPVYTHUHNLTLU[SL]LS(3*6KLSPILYH[LZ THYRL[YPZRTHUHNLTLU[I`L_LJ\[PUNKLJPZPVUZI\ZPULZZZ[YH[LNPLZHUKHJ[PVUWSHU ^P[OPU[OLWVSPJPLZHUKN\PKLSPULZHWWYV]LKI`)94*VY)VHYK 208 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk (cont’d) PPP 4HUHNLTLU[VMTHYRL[YPZRJVU[»K ;OLKHPS`THUHNLTLU[VMPU]LZ[TLU[WVY[MVSPVPZL_LJ\[LKI`[OL;+6U[OLV[OLYOHUK494+ HJ[ZHZ[OLTPKKSLVѝJLMVYPU]LZ[TLU[HUK[YLHZ\Y`YLSH[LKHJ[P]P[PLZ^OPJOHYLL_LJ\[LK [OYV\NOYPZRNV]LYUHUJLHUKYPZRHZZLZZTLU[WYHJ[PJLZ494+HSZVWYV]PKLZPUKLWLUKLU[ HZZLZZTLU[VUTHYRL[YPZRPUYLSH[PVU[VPU]LZ[TLU[HJ[P]P[PLZPUJS\KPUNYLJVTTLUKH[PVUMVY UL^HJX\PZP[PVUZHUKL]HS\H[PVUVUTHYR[VTHYRL[WYPJLZHUK`PLSKJ\Y]LZVUPU]LZ[TLU[ YL[\YUPUWHY[PJ\SHYMVY(-:WVY[MVSPV494+WYV]PKLZTVU[OS`YLWVY[[V(3*6HUK)0=*MVY PU]LZ[TLU[WVY[MVSPVNV]LYUHUJL -VYIHUR^PKLTHYRL[YPZRTHUHNLTLU[494+TVUP[VYZ[OLWYVÄ[PU[LYLZ[YH[LYPZRZLUZP[P]P[` [OYV\NO 7YVÄ[0U[LYLZ[ 9H[L :LUZP[P]P[` .HW ¸709.¹ ,HYUPUN H[ 9PZR ¸,(9¹ HUK +\YH[PVU >LPNO[LK.HW¸+>.¹^OPJOHYLWYLZLU[LK[V(3*6L]LY`TVU[O494+HSZVYL]PL^ZUL^ WYVK\J[WYVWVZHSWHWLYZHUKZPNUPUNVќKVJ\TLU[Z[VNL[OLY^P[OV[OLYYPZRTHUHNLTLU[ \UP[ZI`PUJVYWVYH[PUNYLSL]HU[HZZLZZTLU[ZHUKHK]PJLVUTHYRL[HUKSPX\PKP[`YPZRZWYPVY[V LZJHSH[PVU[VOPNOLYSL]LSZMVY)HUR5LNHYH4HSH`ZPH¸)54¹HWWYV]HS P] 4LHZ\YLTLU[VMWYVÄ[PU[LYLZ[YH[LYPZR ;OL TLHZ\YLTLU[ VM [OL )HUR»ZL_WVZ\YLZ [V WYVÄ[PU[LYLZ[ YH[L YPZR PZ KVUL [OYV\NO [OL MVSSV^PUN[LJOUPX\LZ" :[YLZZ[LZ[HUHS`ZPZ:JLUHYPVHUHS`ZPZ :[YLZZ[LZ[PUNZJLUHYPVHUHS`ZPZHYLIHZLKVUTHJYVLJVUVTPJ]HYPHISLZWHY[PJ\SHYS` ¸PU[LYLZ[YH[LZVUIVUK]HS\LZ¹HUK¸IL[HTLHZ\YLVULX\P[`¹;OLZ[YLZZ[LZ[ZLTWSV` HYHUNLVMZPT\SH[LKZJLUHYPVZVU[OL)HUR»ZPU]LZ[TLU[WVY[MVSPV[VHZZLZZ[OLPTWHJ[ VUPU]LZ[TLU[]HS\LZWYVÄ[HIPSP[`HUKJHWP[HSVM[OL)HUR Agrobank Annual Report 2013 209 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk (cont’d) P] 4LHZ\YLTLU[VMWYVÄ[PU[LYLZ[YH[LYPZRJVU[»K :LUZP[P]P[`HUHS`ZPZ :LUZP[P]P[`HUHS`ZPZPZH[LJOUPX\L\ZLK[VKL[LYTPULOV^KPќLYLU[]HS\LZVMHUPUKLWLUKLU[ ]HYPHISL ^PSS PTWHJ[ H WHY[PJ\SHY KLWLUKLU[ ]HYPHISL \UKLY H NP]LU ZL[ VM HZZ\TW[PVUZ ;OPZ[LJOUPX\LPZ\ZLK^P[OPUZWLJPÄJIV\UKHYPLZ[OH[^PSSKLWL UKVUVULVYTVYLPUW\[ ]HYPHISLZZ\JOHZ[OLLќLJ[VMJOHUNLZPUPU[LYLZ[YH[LZVUI VUKZ»WYPJLZ :LUZP[P]P[`HUHS`ZPZPZHTLHU[VWYLKPJ[[OLV\[JVTLVMHKLJPZPVUPMHZP[\H[PVU[\YUZV\[[V ILKPќLYLU[JVTWHYLK[V[OLRL`WYLKPJ[PVUZ:PT\SH[PVUHUHS`ZPZL]HS\H[LZ[OLLќLJ[ZVM PU[LYLZ[YPZRJOHUNLZVU[OLLHYUPUNZVYLJVUVTPJ]HS\LI`TVKLSSPUN[OLWV[LU[PHSKPYLJ[PVU VMPU[LYLZ[YH[LZHUKP[ZLќLJ[VUJHZOÅV^Z 7YVÄ[PU[LYLZ[YH[LNHW¸709.¹HUHS`ZPZ .HWHUHS`ZPZPZJVUK\J[LK[VKL[LYTPUL[OLNHWIL[^LLU[OLHZZL[ZHUKSPHIPSP[PLZ[OH[HYL ZLUZP[P]L[VPU[LYLZ[YH[LZMVYHU`NP]LUWLYPVKVM[PTL(ZZL[ZHUKSPHIPSP[PLZSHJRPUNKLÄUP[L YLWYPJPUNPU[LY]HSZHYLHZZPNULK[VI\JRL[ZHJJVYKPUN[V[OLQ\KNTLU[HUKWHZ[L_WLYPLUJL VM[OL)HUR;OL)HURHWWSPLZZLUZP[P]P[`HUHS`ZPZ[VNH\NL[OLPTWHJ[VMPU[LYLZ[WYVÄ[YH[L TV]LTLU[ZVUP[ZIV[[VTSPULHUKJHWP[HS;OL)HURLZ[HISPZOLZHSPTP[VU[OLZLUZP[P]P[`VU PU[LYLZ[WYVÄ[YH[LTV]LTLU[Z;OLHZZL[ZHUKSPHIPSP[PLZHYLZLNYLNH[LKIL[^LLUZLUZP[P]L HUKUVUZLUZP[P]LHZZL[ZVYSPHIPSP[PLZ;OLZLUZP[P]LHZZL[ZHUKSPHIPSP[PLZHYLJSHZZPÄLKPU[V WYLKL[LYTPULKI\JRL[ZIHZLKVU[OLYLZWLJ[P]LZLUZP[P]P[`VUHU`TV]LTLU[PUPU[LYLZ[ WYVÄ[ YH[LZ PU [OL THYRL[ IHZLK VU [OL YLZWLJ[P]L [LU\YL VYPNPUHS TH[\YP[` ;OL NHW IL[^LLUZLUZP[P]LHZZL[ZHUKZLUZP[P]LSPHIPSP[PLZMVYLHJOI\JRL[YLWYLZLU[LKI`HTV\U[Z HUKWLYJLU[HNLZHYLJVUZPKLYLKHZ709.-VY[OLTLHZ\YLTLU[VM09.[OL)HUR[HRLZ[OL WVZP[PVUVMHSS[OLI\JRL[Z^P[OPUVUL`LHYHUKTH[JOLZP[HNHPUZ[[OLKL[LYTPULKSPTP[[V YLÅLJ[ZLUZP[P]P[`[VHU`TV]LTLU[PUPU[LYLZ[WYVÄ[;OLUVUZLUZP[P]LHZZL[ZVYSPHIPSP[PLZHZ ^LSSHZZOHYLOVSKLYZM\UKHYLUV[Z\IQLJ[LK[VI\JRL[PUNHUHS`ZPZ 210 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk (cont’d) P] 4LHZ\YLTLU[VMWYVÄ[PU[LYLZ[YH[LYPZRJVU[»K +\YH[PVU^LPNO[LKNHW¸+>.¹HUHS`ZPZ +>.HUHS`ZPZPZ[OL[PTL^LPNO[LKH]LYHNLTH[\YP[`VM[OLWYLZL U[]HS\LVM[OLJHZOÅV^ZMYVT HZZL[ZSPHIPSP[PLZHUKVќIHSHUJLZOLL[P[LTZ0[TLHZ\YLZ[OLYLSH[P]LZLUZP[P]P[`VM[OL]HS\LVM [OLZLPUZ[Y\TLU[Z[VJOHUNPUNPU[LYLZ[YH[LZ[OLH]LYHNL[LYT[VYLWYPJPUNHUK[OLYLMVYLYLÅLJ[Z OV^JOHUNLZPUPU[LYLZ[YH[LZ^PSSHќLJ[[OL)HUR»ZLJVUVTPJ]HS\L[OH[PZ[OLWYLZLU[]HS\LVM LX\P[`;OL)HURHWWSPLZ+>.[VTLHZ\YLP[ZJHWP[HSHUKIHSHUJLZOLL[ZLUZP[P]P[`[V[OLPU[LYLZ[ WYVÄ[YH[LMVYHSSI\JRL[ZHZWLY709.^P[O[OLPUJVYWVYH[PVUVM^LPNO[Z ,HYUPUNH[YPZR¸,H9¹HUHS`ZPZ ,H9HUHS`ZPZPZKVUL[VX\HU[P[`[OLPTWHJ[VU[OLWYVQLJ[PVUVMUL[WYVÄ[PU[LYLZ[PUJVTL¸5700¹ PU[OLL]LU[VMHUHK]LYZLJOHUNLPUWYL]HPSPUNPU[LYLZ[YH[LZMVYHWLYPVKVM`LHYKLWLUKPUNVU WYVÄ[PU[LYLZ[YH[LZZLUZP[P]P[`VM[OL)HURLP[OLYP[PZL_WLYPLUJPUNHUHZZL[ZLUZP[P]LWVZP[PVUVY SPHIPSP[`ZLUZP[P]LWVZP[PVU*\YYLU[S`[OL)HUROHZ`L[[VHK VW[[OL=HS\LH[9PZR¸=H9¹HWWYVHJOPU TLHZ\YPUNPU[LYLZ[YH[LYPZRVUP[ZPU]LZ[TLU[WVY[MVSPV=H9P ZHZ[H[PZ[PJHSTLHZ\YLVM[OLWV[LU[PHS SVZZLZ[OH[JV\SKVJJ\YHZHY LZ\S[VMTV]LTLU[ZPUTHYRL[YH[L ZHUKWYPJLZV]LYHZWLJPÄLK[PTL OVYPaVU^P[OPUHNP]LUJVUÄKLUJLSL]LS Agrobank Annual Report 2013 211 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk (cont’d) 7YVÄ[0U[LYLZ[YH[LZLUZP[P]P[` Scenario 1 Scenario 2 Scenario 3 25bps increase in 50bps increase in 75bps increase in Current position YTM YTM YTM Potential Potential Potential 5L[IVVR 4HYRL[ 4HYRL[ loss 4HYRL[ loss 4HYRL[ loss value value +PќLYLUJL value provisions value provisions value provisions 2013 RM’mil RM’mil RM’mil RM’mil RM’mil RM’mil RM’mil RM’mil RM’mil 7+: 4.:.00 3,560 3,476 (84) 3,427 (133) 3,378 (182) 3,329 (231) 2012 7+: 4.:.00 3,006 3,017 11 2,974 (32) 2,932 (74) 2,890 (116) 212 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk (cont’d) ] -VYLPNUL_JOHUNLYPZR ;OL)HURPZUV[Z\IQLJ[[VMVYLPNUL_JOHUNLNHPUVYSVZZVUÅ\J[\H[PVUVM1HWHULZL@LU ¸17@¹L_JOHUNLYH[LPUYLZWLJ[VM[OL17@KLUVTPUH[LKSVHUHZ[OLMVYLPNUL_JOHUNL NHPUVYSVZZVUZL[[SLTLU[VM[OL17@[LYTSVHUZPZJVTWLUZH[LKI`[OL.V]LYUTLU[VM 4HSH`ZPH ;OLÄUHUJPHSSPHIPSP[`VM[OL)HUR[OH[HYLUV[KLUVTPUH[LKPUP[ZM\UJ[PVUHSJ\YYLUJ`HUK N\HYHU[LLKI`[OL.V]LYUTLU[VM4HSH`ZPHPZHZMVSSV^Z! Financial liabilities held in UVUM\UJ[PVUHSJ\YYLUJ` 2013 2012 RM’000 RM’000 -\UJ[PVUHSJ\YYLUJ`VM[OL)HUR ;LYTSVHUZ17@ - 20,638 Agrobank Annual Report 2013 213 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market Risk (cont’d) (vi) Interest Rate Risk ;OL[HISLILSV^Z\TTHYPZLZ[OL)HUR»ZL_WVZ\YL[VPU[LYLZ[YH[LYPZR Non- interest <1 >1-2 >2-3 >3-5 >5 WYVÄ[ ,ɈLJ[P]L year years years years years sensitive Total Interest RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 Rate 2013 Financial assets *HZOHUKZOVY[[LYT M\UKZ +LWVZP[Z^P[O ÄUHUJPHSPUZ[P[\[PVUZ 0U]LZ[TLU[ZLJ\YP[PLZ 3VHUZÄUHUJPUNHUK advances Other assets 5,008,806 6,942 138,406 686,598 3,707,000 1,320,054 10,867,806 4.37% 214 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market Risk (cont’d) (vi) Interest Rate Risk (cont’d) Non- interest <1 >1-2 >2-3 >3-5 >5 WYVÄ[ ,ɈLJ[P]L year years years years years sensitive Total Interest RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 Rate 2013 (cont’d) Financial liabilities +LWVZP[ZMYVT J\Z[VTLYZ 3VHUZJOLTLM\UK .V]LYUTLU[NYHU[Z 6[OLYSPHIPSP[PLZ 3,549,298 7,781 7,980 15,717 17 5,208,531 8,789,324 1.33% Equity :OHYLOVSKLY»ZM\UK ;V[HSÄUHUJPHS liabilities and equity 3,549,298 7,781 7,980 15,717 17 7,557,920 11,138,713 1.33% Agrobank Annual Report 2013 215 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market Risk (cont’d) (vi) Interest Rate Risk (cont’d) ;OL[HISLILSV^Z\TTHYPZLZ[OL)HUR»ZL_WVZ\YL[VPU[LYLZ[YH[LYPZR Non- interest <1 >1-2 >2-3 >3-5 >5 WYVÄ[ ,ɈLJ[P]L year years years years years sensitive Total Interest RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 Rate 2012 Financial assets *HZOHUKZOVY[[LYT M\UKZ 0U]LZ[TLU[ZLJ\YP[PLZ 3VHUZÄUHUJPUNHUK advances Other assets 5,210,795 2,015 108,090 738,021 3,161,913 2,028,808 11,249,642 4.66% 216 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market Risk (cont’d) (vi) Interest Rate Risk (cont’d) Non- interest <1 >1-2 >2-3 >3-5 >5 WYVÄ[ ,ɈLJ[P]L year years years years years sensitive Total Interest RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 Rate 2012 (cont’d) Financial liabilities +LWVZP[ZMYVT J\Z[VTLYZ 3VHUMYVT6,*- 3VHUZJOLTLM\UK .V]LYUTLU[NYHU[Z 6[OLYSPHIPSP[PLZ 3,471,934 11,191 16,221 65,800 17 5,570,971 9,136,134 2.02% Equity :OHYLOVSKLY»ZM\UK ;V[HSÄUHUJPHS liabilities and equity 3,471,934 11,191 16,221 65,800 17 7,896,233 11,461,396 2.02% Agrobank Annual Report 2013 217 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (e) Operational risk ;OL )HUR»Z 6WLYH[PVUHS 9PZR 4HUHNLTLU[ -YHTL^VYR º»694-»» WYV]PKLZ H Z[Y\J[\YLK HUK KPZJPWSPULKWYVJLZZKLÄULKI`[OLYLN\SH[VY`N\PKLSPULZZL[I`[OL)HURVM0U[LYUH[PVUHS:L[[SLTLU[Z º»)0:»»)HZLS(JJVYKZHUK)54 ;OL)HURPZSH`PUN[OLMV\UKH[PVUZPUJVTWSPHUJL[V[OL)HZLSYLX\PYLTLU[Z^P[OPUHWLYPVKVMÄ]L `LHYZ;OPZPZPUSPUL^P[O[OL)HUR»Z]PZPVU[VHJOPL]L;OL:[HUKHYKPZLK(WWYVHJOº»;:(»»^P[OPU Ä]L`LHYZ/V^L]LYHZHZ[HY[[OL)HURZOHSSHWWS`[OL)HZPJ0UKPJH[VY(WWYVHJO)0(PUP[ZJHWP[HS HSSVJH[PVUJVTW\[H[PVUMVY6WLYH[PVUHS9PZR Approach to operational risk management ;OL)HURHKVW[Z[OLÄ]LJVYLJVTWVULU[ZHZ[OLN\PKPUNWYPUJPWS LZMVYHULќLJ[P]LHUKLѝJPLU[ THUHNLTLU[VMP[ZVWLYH[PVUHSYPZRZHZMVSSV^Z! .V]LYUHUJL ;OL)VHYKVM+PYLJ[VYZKLÄULZ[OLRL`VIQLJ[P]LZMVYTHUHNPUN[OL)HUR»ZVWLYH[PVUHSYPZRHUK V]LYZLLZ WYVNYLZZ [V^HYKZ HJOPL]PUN P[Z VIQLJ[P]LZ ;OL )VHYK KLÄULZ [OL V]LYHSS VWLYH[PVUHS YPZRJ\S[\YLHUKZL[Z[OL[VULHZ[VOV^[OL)HURPTWSLTLU[ZHUKL_LJ\[LZP[ZVWLYH[PVUHSYPZR THUHNLTLU[Z[YH[LN` 4HUHNLTLU[[HRLZ[OLYLZWVUZPIPSP[`VMTHUHNPUN[OLI\ZPULZZYPZRZ[OL\S[PTH[LYLZWVUZPIPSP[`MVY LZ[HISPZOPUNHUKTHPU[HPUPUNHWWYVWYPH[LYPZRTHUHNLTLU[WYVJLZZLZTHRPUNYPZRTHUHNLTLU[HU PU[LNYHSWHY[VM[OL)HUR»ZVWLYH[PVUZHSPNUPUNYPZRTHUHNLTLU[[VPU[LYUHSWVSPJPLZHUKWYVJLK\YLZ HZ^LSSHZLUZ\YPUN[OH[HSSYPZRIHZLKSPTP[ZHYLHKOLYLK[VI`[OLI\ZPULZZKP]PZPVUZKLWHY[TLU[Z HUK\UP[Z 218 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (e) Operational risk (cont’d) Approach to operational risk management (cont’d) 6]LYZPNO[Z[Y\J[\YLHUKSPULZVMKLMLUJL ;OLPU[LYWSH`IL[^LLU[OLYPZRV^ULYZH[[OLI\ZPULZZSL]LS9PZR4HUHNLTLU[+P]PZPVUº»94+»» HUK0U[LYUHS(\KP[MVYTZ[OLMYHTL^VYRMVY[OL)HUR»Z¸[OYLLSPULZVMKLMLUJL¹PU[OLTHUHNLTLU[ VMYPZRZ ;OLÄYZ[SPULVMKLMLUJLPZ[OL)\ZPULZZYPZRV^ULYZ^OVHYLYLZWVUZPISLMVY[OLKH`[VKH` VWLYH[PVUHSYPZRTHUHNLTLU[^OLYL2L`7LYMVYTHUJL0UKPJH[VYZº»270Z»»2L`9PZR0UKPJH[VYZ º»290Z»»HUK2L`*VU[YVS0UKPJH[VYZº»2*0Z»»9PZR4HWZ2L`9PZR*VU[YVS:LSM(ZZLZZTLU[ º»9*:(»»HUK0UJPKLU[4HUHNLTLU[HUK+H[H*VSSLJ[PVUº»04+*»»HYL[VILPUWSHJLPUYLSH[PVU [V[OLI\ZPULZZVIQLJ[P]LZ ;OLZLJVUKSPULVMKLMLUJLPZ[OL94+^OPJOPZYLZWVUZPISLMVYVWLYH[PVUHSYPZRTHUHNLTLU[ V]LYZPNO[ ;OL [OPYK SPUL VM KLMLUJL PZ 0U[LYUHS (\KP[ ^OPJO PZ ILPUN LU[Y\Z[LK [V WLYMVYT PUKLWLUKLU[ HZZ\YHUJLV]LY[OLLќLJ[P]LULZZVM[OLVWLYH[PVUHSYPZRTHUHNLTLU[PUP[PH[P]LZI`94+HUK[OL )\ZPULZZ 9PZRTHUHNLTLU[WYVJLZZ 6WLYH[PVUHSYPZRTHUHNLTLU[¸694¹YLMLYZ[V[OLLUK[VLUKWYVJLZZ[OH[LUZ\YLZVWLYH[PVUHS YPZRZHYLLќLJ[P]LS`THUHNLKMYVT[OL[PTL[OL`HYLPKLU[PÄLK[V[OL[PTL[OLYPZRZHYLTP[PNH[LK ^P[OPU[OLYPZRHWWL[P[LVM[OL)HUR0[PZ[OLYLZWVUZPIPSP[`VML]LY`VULPU[OL)HUR;OPZNLULYPJ WYVJLZZPZ\ZLK[VTHUHNLVWLYH[PVUHSYPZRZH[HSSSL]LSZMYVT\UP[Z[V/LHKVѝJL;OLVWLYH[PVUHS YPZRTHUHNLTLU[WYVJLZZJVTWYPZLZZ[LWZUHTLS`! P 9PZRPKLU[PÄJH[PVU PP 9PZRHZZLZZTLU[ PPP 4HUHNPUNHUKJVU[YVSSPUNYPZR P] 4VUP[VYPUNHUKYLWVY[PUNYPZR Agrobank Annual Report 2013 219 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (e) Operational risk (cont’d) Approach to operational risk management (cont’d) 9LWVY[PUNHUKJVTT\UPJH[PVUN\PKLSPULZ 0ULZ[HISPZOPUNHZV\UK694H[[OL)HUR[OLYLWVY[PUNHUKJVTT\UPJH[PVUSPULZHYLL_[YLTLS` PTWVY[HU[(ZVWLYH[PVUHSYPZRPZWLY]HZP]LHJYVZZ[OLVYNHUPZH[PVUHUK[OLYHUNLHUK[`WLVM PUJPKLU[ZPZIYVHKMYVTMYH\K[VWYVK\J[HUKZ`Z[LTMHPS\YLZHUKMYVTLYYVYZPU[OLMYVU[VѝJL [V[OLIHJRVѝJLP[PZPTWVY[HU[[VZOHYLPUMVYTH[PVUH[HSSSL]LSZ 0UMVYTH[PVU ZOHYPUN ZOV\SK IL [OYV\NO IV[O MVYTHS YLWVY[PUN SPULZ HUK MHJL[VMHJL JVTT\UPJH[PVU *\S[\YL 6WLYH[PVUHSYPZRJ\S[\YLLUJVTWHZZLZNLULYHSH^HYLULZZH[[P[\KLILOH]PV\YVMLTWSV`LLZ[V [OLRL`VWLYH[PVUHSYPZRJH\ZLZZ\JOHZWLVWSLWYVJLZZZ`Z[LTZL_[LYUHSL]LU[Z (KLX\H[L H^HYLULZZ HUK [YHPUPUN PU VWLYH[PVUHS YPZR PZ [V IL NP]LU [V [OL Z[Hќ HUK [OLPY YVSLZ HUK YLZWVUZPIPSP[PLZ JSLHYS` KLÄULK 0U HKKP[PVU [OL WLYMVYTHUJL THUHNLTLU[ WYVJLZZ LUJV\YHNLZZ[Hќ[VWLYMVYTHUKILOH]LPUHTHUULYJVUZPZ[LU[^P[O[OL)HUR»ZVWLYH[PVUHSYPZR THUHNLTLU[VIQLJ[P]LZ(KLX\H[L[YHPUPUNPZ[VILWYV]PKLK[V[OLZ[Hќ[VLUZ\YL[OH[[OL`OH]L HJX\PYLKHKLX\H[LSL]LSVMRUV^SLKNLHUKZRPSSZL[Z[VWLYMVYT[OLPYYVSLZHUKYLZWVUZPIPSP[PLZPU VWLYH[PVUHSYPZRTHUHNLTLU[ 220 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) M *HWP[HSTHUHNLTLU[ Regulatory capital )54ZL[ZHUKTVUP[VYZJHWP[HSYLX\PYLTLU[ZMVY;OL)HURHZH^OVSL ;OL)HUR»ZYLN\SH[VY`JHWP[HSPZHUHS`ZLKPU[V[^V[PLYZ! ;PLYJHWP[HS^OPJOPUJS\KLZVYKPUHY`ZOHYLJHWP[HSZOHYLWYLTP\TWLYWL[\HSIVUKZ^OPJO HYLJSHZZPÄLKHZPUUV]H[P]L[PLYZLJ\YP[PLZYL[HPULKLHYUPUNZ[YHUZSH[PVUYLZLY]LHUKUVU JVU[YVSSPUNPU[LYLZ[ZHM[LYKLK\J[PVUZMVYNVVK^PSSHUKPU[HUNPISLHZZL[ZHUKV[OLYYLN\SH[VY` HKQ\Z[TLU[ZYLSH[PUN[VP[LTZ[OH[HYLPUJS\KLKPULX\P[`I\[HYL[YLH[LKKPќLYLU[S`MVYJHWP[HS HKLX\HJ`W\YWVZLZ ;PLYJHWP[HS^OPJOPUJS\KLZX\HSPM`PUNZ\IVYKPUH[LKSPHIPSP[PLZNV]LYUTLU[NYHU[ZHUKJVSSLJ[P]L PTWHPYTLU[HSSV^HUJLZMVYUVUPTWHPYLKSVHUZ =HYPV\ZSPTP[ZHYLHWWSPLK[VLSLTLU[ZVM[OLJHWP[HSIHZL;OLHTV\U[VMPUUV]H[P]L[PLYZLJ\YP[PLZ JHUUV[L_JLLK WLYJLU[VM[V[HS[PLYJHWP[HS"X\HSPM`PUN[PLYJHWP[HSJHUUV[L_JLLK[PLYJHWP[HS" HUKX\HSPM`PUN[LYTZ\IVYKPUH[LKSVHUJHWP[HSTH`UV[L_JLLK WLYJLU[VM[PLYJHWP[HS;OLYLHYL HSZVYLZ[YPJ[PVUZVU[OLHTV\U[VMJVSSLJ[P]LPTWHPYTLU[HSSV^HUJLZ[OH[TH`ILPUJS\KLKHZWHY[VM [PLYJHWP[HS ;OL)HUR»ZWVSPJ`PZ[VTHPU[HPUHZ[YVUNJHWP[HSIHZLZVHZ[VTHPU[HPUPU]LZ[VYJYLKP[VYHUKTHYRL[ JVUÄKLUJLHUKZ\Z[HPUM\[\YLKL]LSVWTLU[VM[OLI\ZPULZZ;OLPTWHJ[VM[OLSL]LSVMJHWP[HSVU ZOHYLOVSKLYZ»YL[\YUPZHSZVYLJVNUPZLKHUK[OL)HURYLJVNUPZLZ[OLULLK[VTHPU[HPUHIHSHUJL IL[^LLU[OLOPNOLYYL[\YUZ[OH[TPNO[ILWVZZPISL^P[ONYLH[LYNLHYPUNHUKHK]HU[HNLZHUKZLJ\YP[` HќVYKLKI`HZV\UKJHWP[HSWVZP[PVU ;OL)HURHUKP[ZPUKP]PK\HSS`YLN\SH[LKVWLYH[PVUZOH]LJVTWSPLK^P[OHSSL_[LYUHSS`PTWVZLKJHWP[HS YLX\PYLTLU[Z[OYV\NOV\[[OLWLYPVK4HUHNLTLU[\ZLZYLN\SH[VY`JHWP[HSYH[PVZPUVYKLY[VTVUP[VY P[ZJHWP[HSIHZLHUK[OLZLJHWP[HSYH[PVZYLTHPU[OLPU[LYUH[PVUHSZ[HUKHYKZMVYTLHZ\YPUNJHWP[HS HKLX\HJ`;OL)HURPZPU[OLWYVJLZZVUKL]LSVWPUN*HWP[HS4HUHNLTLU[7SHUº»*47»»[VMHJPSP[H[L LќLJ[P]LTHUHNLTLU[VMJHWP[HSHUKHKKYLZZWV[LU[PHSPTWHJ[MYVTSVHUKL[LYPVYH[PVUHZ^LSSHZ[V WYV]PKLHKLX\H[LI\ќLY[VZ\WWVY[I\ZPULZZL_WHUZPVU Agrobank Annual Report 2013 221 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) M *HWP[HSTHUHNLTLU[JVU[»K Capital allocation *HWP[HSHSSVJH[PVUVMJHWP[HSIL[^LLUZWLJPÄJVWLYH[PVUZHUKHJ[P]P[PLZPZ[VHSHYNLL_[LU[ KYP]LU I` VW[PTPZH[PVU VM [OL YL[\YU HJOPL]LK VU [OL JHWP[HS HSSVJH[LK ;OL HTV\U[ VM JHWP[HS HSSVJH[LK [V LHJO VWLYH[PVU VY HJ[P]P[` PZ IHZLK WYPTHYPS` \WVU [OL YLN\SH[VY` JHWP[HS I\[ PU ZVTL JHZLZ [OL YLN\SH[VY` YLX\PYLTLU[Z KV UV[ YLÅLJ[ M\SS` [OL ]HY`PUN KLNYLLVMYPZRHZZVJPH[LK^P[OKPќLYLU[HJ[P]P[PLZ0UZ\JOJHZLZ[OLJHWP[HSYLX\PYLTLU[Z TH`IL]HYPLK[VYLÅLJ[KPќLYPUNYPZRWYVÄSLZ\IQLJ[[V[OLV]LYHSSSL]LSVMJHWP[HS[VZ\WWVY[ H WHY[PJ\SHY VWLYH[PVU VY HJ[P]P[` UV[ MHSSPUN ILSV^ [OL TPUPT\T YLX\PYLK MVY YLN\SH[VY` W\YWVZLZ;OLWYVJLZZVMHSSVJH[PUNJHWP[HS[VZWLJPÄJVWLYH[PVUZHUKHJ[P]P[PLZPZZ\IQLJ[ [VYL]PL^I`[OL(3*6HZHWWYVWYPH[L Capital Adequacy ;OLJHWP[HSHKLX\HJ`YH[PVVM[OL)HURHZH[[OLLUKVM[OLYLWVY[PUNWLYPVKPZHZMVSSV^Z! 31 December 31 December 2013 2012 % % Restated )LMVYLKLK\J[PUNWYVWVZLKKP]PKLUK! Core capital ratio 28.17 26.27 9PZR^LPNO[LKJHWP[HSYH[PV 33.97 31.90 (M[LYKLK\J[PUNWYVWVZLKKP]PKLUK! Core capital ratio 28.07 25.98 9PZR^LPNO[LKJHWP[HSYH[PV 33.87 31.61 222 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) M *HWP[HSTHUHNLTLU[JVU[»K Capital allocation ;OLJHWP[HSHKLX\HJ`YH[PVVM[OL)HURHZH[+LJLTILYOHZPUJVYWVYH[LK[OL THYRL[YPZRW\YZ\HU[[V)544HYRL[9PZR*HWP[HS(KLX\HJ`-YHTL^VYR^OPJOILJHTL LќLJ[P]LVU(WYPS 31 December 31 December 2013 2012 % % Restated *VTWVULU[ZVM;PLY0HUK;PLY00JHWP[HS Tier I capital Share capital :[H[\[VY`YLZLY]LZ Retained earnings 3LZZ!+LMLYYLK[H_HZZL[Z Total Tier I capital 2,163,227 2,003,543 Tier II capital *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL .V]LYUTLU[.YHU[Z6WLYH[PUN .V]LYUTLU[.YHU[Z3H\UJOPUN .V]LYUTLU[.YHU[Z-\UKZ Total Tier II capital 445,174 429,299 Total capital base 2,608,401 2,432,842 ;OLLSPNPISLHTV\U[MVY;PLY00JHWP[HSPZSPTP[LK[VVUS`JVSSLJ[P]LPTWHPYTLU[HSSV^HUJL VUUVUPTWHPYLKSVHUZÄUHUJPUNHUKHK]HUJLZ Agrobank Annual Report 2013 223 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) M *HWP[HSTHUHNLTLU[JVU[»K Capital allocation ;OLIYLHRKV^UVMYPZR^LPNO[LKHZZL[ZPU[OL]HYPV\ZJH[LNVYPLZVMYPZR^LPNO[ZPZHZMVSSV^Z! Notional Risk- RM’000 ^LPNO[LK RM’000 6ќIHSHUJLZOLL[YPZR^LPNO[LKHZZL[Z ;V[HSYPZR^LPNO[LKHZZL[ZH[+LJLTILY 11,090,141 7,677,957 6ќIHSHUJLZOLL[YPZR^LPNO[LKHZZL[Z ;V[HSYPZR^LPNO[LKHZZL[ZH[+LJLTILY 11,461,396 7,625,955 224 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) B. FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES -HPY]HS\LPZ[OLHTV\U[H[^OPJO[OLÄUHUJPHSHZZL[ZJV\SKILL_JOHUNLKVYÄUHUJPHSSPHIPSP[PLZJV\SKIL ZL[[SLKIL[^LLURUV^SLKNLHISLHUK^PSSPUNWHY[PLZPUHUHYT»ZSLUN[O[YHUZHJ[PVU;OLPUMVYTH[PVUWYLZLU[LK OLYLPUYLWYLZLU[Z[OLILZ[LZ[PTH[LZVMMHPY]HS\LZHZVM[OLYLWVY[PUNWLYPVK :L[V\[ILSV^PZHJVTWHYPZVUI`JSHZZVM[OLJHYY`PUNHTV\U[ZHUKMHPY]HS\LVM[OL)HUR»ZÄUHUJPHS PUZ[Y\TLU[ZV[OLY[OHU[OVZL^P[OJHYY`PUNHTV\U[Z[OH[HYLYLHZVUHISLHWWYV_PTH[PVUVM[OLPYMHPY ]HS\LZ! Level 1 Level 2 Level 3 Total Carrying RM’000 RM’000 RM’000 MHPY]HS\L amount 2013 RM’000 RM’000 Financial assets 0U]LZ[TLU[ZLJ\YP[PLZ/;4 0U]LZ[TLU[ZLJ\YP[PLZ(-: 3VHUZÄUHUJPUN and advances Financial liabilities +LWVZP[ZMYVTJ\Z[VTLYZ 3VHUZJOLTLM\UK 2012 (restated) Financial assets 0U]LZ[TLU[ZLJ\YP[PLZ/;4 0U]LZ[TLU[ZLJ\YP[PLZ(-: 3VHUZÄUHUJPUN and advances Financial liabilities +LWVZP[ZMYVTJ\Z[VTLYZ 3VHUZJOLTLM\UK ;OLYL^LYLUV[YHUZMLYZIL[^LLU3L]LSHUK3L]LSK\YPUN[OLJ\YYLU[HUKWYL]PV\ZÄUHUJPHS`LHYZ Agrobank Annual Report 2013 225 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) B. FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (cont’d) ;OLTL[OVKZHUKHZZ\TW[PVUZ\ZLKPULZ[PTH[PUN[OLMHPY]HS\LZVMÄUHUJPHSPUZ[Y\TLU[ZHYLHZ MVSSV^Z! (i) Investment securities - HTM ;OLMHPY]HS\LZVMPUZ[Y\TLU[VMPU]LZ[TLU[ZHYLLZ[PTH[LKIHZLKVU[OLTHYRL[]HS\LH[[OLLUKVM [OLYLWVY[PUNWLYPVK (ZMVYJVTTLYJPHSWHWLYZ^OPJOHYLNLULYHSS`ZOVY[[LYTM\UKZ[OLMHPY]HS\LZHWWYV_PTH[L[OL YLZWLJ[P]LJHYY`PUN]HS\LZ (ii) Investment securities - AFS (-:ÄUHUJPHSHZZL[Z]HS\LK\ZPUN]HS\H[PVU[LJOUPX\LZVYWYPJPUNTVKLSZWYPTHYPS`JVUZPZ[ZVM C\UX\V[LKLX\P[PLZHUKKLI[ZLJ\YP[PLZ ;OLZLHZZL[ZHYL]HS\LK\ZPUNTVKLSZ[OH[\ZLIV[OVIZLY]HISLHUKUVUVIZLY]HISLKH[H;OL UVUVIZLY]HISLPUW\[Z[V[OLTVKLSZPUJS\KLHZZ\TW[PVUZYLNHYKPUN[OLM\[\YLMPUHUJPHS WLYMVYTHUJLVM[OLPU]LZ[LLP[ZYPZRWYVÄSLHUKLJVUVTPJHZZ\TW[PVUZYLNHYKPUN[OLPUK\Z[Y` HUKNLVNYHWOPJHSQ\YPZKPJ[PVUPU^OPJO[OLPU]LZ[LLVWLYH[LZ PPP3VHUZÄUHUJPUNHUKHK]HUJLZ -VYÄ_LKYH[LSVHUZ^P[OTH[\YP[PLZ^P[OPUH`LHYHUKSVHUZÄUHUJPUNHUKHK]HUJLZH[]HYPHISL YH[LZ[OLLZ[PTH[LKMHPY]HS\LZHWWYV_PTH[L[OLPYYLZWLJ[P]LJHYY`PUN]HS\LZ -VYÄ_LKYH[LSVHUZ^P[OTH[\YP[PLZTVYL[OHUH`LHY[OLMHPY]HS\LZHYLLZ[PTH[LKIHZLKVU L_WLJ[LKM\[\YLJHZOÅV^ZVMJVU[YHJ[\HSPUZ[HSTLU[ZHUKKPZJV\U[LKH[WYL]HPSPUNYH[LH[[OLLUK VM[OLYLWVY[PUNWLYPVKVќLYLKMVYZPTPSHYSVHUZ[VUL^IVYYV^LYZ^P[OZPTPSHYJYLKP[WYVÄSLZ ^OLYLHWWSPJHISL 226 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) B. FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (cont’d) ;OLTL[OVKZHUKHZZ\TW[PVUZ\ZLKPULZ[PTH[PUN[OLMHPY]HS\LZVMÄUHUJPHSPUZ[Y\TLU[ZHYLHZ MVSSV^Z!JVU[»K P]+LWVZP[ZMYVTJ\Z[VTLYZ ;OLMHPY]HS\LZVMKLWVZP[ZMYVTJ\Z[VTLYZ^P[OYLTHPUPUNTH[\YP[`VMSLZZ[OHUVUL`LHYHYL LZ[PTH[LK[VHWWYV_PTH[L[OLPYJHYY`PUNHTV\U[Z;OLMHPY]HS\LZVMKLWVZP[Z^P[OYLTHPUPUN TH[\YP[PLZVMTVYL[OHUVUL`LHYHYLLZ[PTH[LK\ZPUNKPZJV\U[LKJHZOÅV^ZIHZLKVUTHYRL[ YH[LZMVYZPTPSHYKLWVZP[ZMYVTJ\Z[VTLYZ;OLMHPY]HS\LZVM0ZSHTPJKLWVZP[ZHYLKLLTLK[V HWWYV_PTH[L[OLPYJHYY`PUNHTV\U[ZHZWYVÄ[YH[LZHYLKL[LYTPULKH[[OLLUKVM[OLPYOVSKPUN WLYPVKZIHZLKVU[OLWYVÄ[NLULYH[LKMYVT[OLHZZL[ZPU]LZ[LK ] 3VHUZJOLTLM\UK ;OLLZ[PTH[LKMHPY]HS\LZVMSVHUZJOLTLM\UKHYLIHZLKVUM\[\YLJHZOÅV^ZKPZJV\U[LKH[[OL J\YYLU[YH[LHZVM[OLLUKVM[OLYLWVY[PUNWLYPVK Fair value hierarchy +L[LYTPUH[PVUVMMHPY]HS\LHUKMHPY]HS\LOPLYHYJO` ;OL )HUR \ZLZ [OL MVSSV^PUN OPLYHYJO` MVY KL[LYTPUPUN HUK KPZJSVZPUN [OL MHPY ]HS\L VM ÄUHUJPHS PUZ[Y\TLU[ZI`]HS\H[PVU[LJOUPX\L! 3L]LS!8\V[LK\UHKQ\Z[LKWYPJLZPUHJ[P]LTHYRL[ZVMPKLU[PJHSHZZL[ZVYSPHIPSP[PLZ" 3L]LS!6[OLY[LJOUPX\LZMVY^OPJOHSSPUW\[Z^OPJOOH]LZPNUPÄJHU[LќLJ[VU[OLYLJVYKLKMHPY]HS\L HYLVIZLY]HISLLP[OLYKPYLJ[S`VYPUKPYLJ[S`" 3L]LS!;LJOUPX\LZ^OPJO \ZL PUW\[Z ^OPJO OH]L ZPNUPÄJHU[ LќLJ[ VU [OL MHPY ]HS\L [OH[ HYL UV[ IHZLKVUVIZLY]HISLTHYRL[KH[H Agrobank Annual Report 2013 227 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 33. FINANCIAL INSTRUMENTS (cont’d) C. ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT BASIS Financial assets and liabilities at HTM Loans and AFS amortised securities receivables securities cost Total RM’000 RM’000 RM’000 RM’000 RM’000 2013 Financial assets *HZOHUKZOVY[[LYTM\UKZ +LWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ 0U]LZ[TLU[ZLJ\YP[PLZ 3VHUZÄUHUJPUNHUKHK]HUJLZ 214,162 7,183,551 3,373,892 10,771,605 Financial liabilities +LWVZP[ZMYVTJ\Z[VTLYZ 3VHUZJOLTLM\UK 8,149,993 8,149,993 228 Agrobank Annual Report 2013 33. FINANCIAL INSTRUMENTS (cont’d) C. ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT BASIS (cont’d) Financial assets and liabilities at HTM Loans and AFS amortised securities receivables securities cost Total RM’000 RM’000 RM’000 RM’000 RM’000 2012 Financial assets *HZOHUKZOVY[[LYTM\UKZ 0U]LZ[TLU[ZLJ\YP[PLZ 3VHUZÄUHUJPUNHUKHK]HUJLZ 214,079 7,694,660 3,244,983 - 11,153,722 Financial liabilities +LWVZP[ZMYVTJ\Z[VTLYZ 3VHUMYVT6,*- 3VHUZJOLTLM\UK - - - 8,502,842 8,502,842 Agrobank Annual Report 2013 229 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 34. PRIOR YEAR ADJUSTMENTS +L[HPSZVMWYPVY`LHYHKQ\Z[TLU[ZHYLHZMVSSV^Z! P (JJV\U[PUNMVYNV]LYUTLU[NYHU[Z 0U [OL )HUR YLJLP]LK 94 TPSSPVU HZ WHY[ VM [OL ZLJVUK ,JVUVTPJ :[PT\S\Z 7HJRHNL ¸,:7¹;OLM\UKZ^LYLHSSVJH[LK[V[OL4PUPZ[Y`VM(NYPJ\S[\YLHUK(NYVIHZLK0UK\Z[Y`¸46(¹ \UKLY[OLTPUPI\KNL[HUKJOHUULSSLK[V[OL)HUR[VPTWSLTLU[[OLº:RPT2YLKP[4PRYV»^OPJO^HZ Z\IZLX\LU[S`YLUHTLKº:RPT7LTIPH`HHU4PRYV7LY[HUPHU» (Z[OLYL^LYLUVN\PKLSPULZMYVT[OL.V]LYUTLU[YLSH[PUN[V[OLYPNO[ZHUKVISPNH[PVUZVM[OL)HURPU YLNHYKZ[V[OLZLM\UKZKPZI\YZLTLU[ZMYVT[OLM\UK^LYLUV[PUJS\KLKPU[OLÄUHUJPHSZ[H[LTLU[Z +\YPUN[OL`LHYJSHYPÄJH[PVU^HZYLJLP]LKMYVT[OL.V]LYUTLU[[OH[[OLM\UKZ^LYLNP]LUHZHNYHU[ [V[OL)HUR[VILKPZI\YZLK[VLSPNPIPSLJ\Z[VTLYZ ;OPZJSHYPÄJH[PVUOHZYLZ\S[LKPU[OLM\UKZHUK[OLSVHUZKPZI\YZLKILPUNIYV\NO[VU[V[OLIHSHUJL ZOLL[;OLHIV]LJOHUNLPU[OLHJJV\U[PUN[YLH[TLU[OHZILLUHKQ\Z[LKMVYYL[YVZWLJ[P]LS` PP *VUZLX\LU[[VHYL]PL^VM[OL)HUR»ZL_PZ[PUN4\KOHYHIHOJVU[YHJ[ZP[^HZUV[LK[OH[[OLSPHIPSP[` MVYKPZ[YPI\[HISLPUJVTL[V[OLKLWVZP[VYZOHKILLU\UKLYYLJVNUPZLK;OLHKQ\Z[TLU[[VYLÅLJ[[OL YL]PZLKJVTW\[H[PVUVMKPZ[YPI\[HISLPUJVTLOHZILLULќLJ[LKYL[YVZWLJ[P]LS` 230 Agrobank Annual Report 2013 34. PRIOR YEAR ADJUSTMENTS (cont’d) +L[HPSZVMWYPVY`LHYHKQ\Z[TLU[ZHYLHZMVSSV^Z!JVU[»K PPP ;H_KLK\J[PIPSP[`VMJVSSLJ[P]LPTWHPYTLU[HSSV^HUJLVUSVHUZHK]HUJLZHUKÄUHUJPUN *VSSLJ[P]LPTWHPYTLU[HSSV^HUJLVUSVHUZÄUHUJPUNHUKHK]HUJLZ^LYL[YLH[LKHZUVUKLK\J[PISLMVY [H_W\YWVZLZHUKHKLMLYYLK[H_HZZL[^HZYLJVNUPZLK/V^L]LYIHZLKVU[OL.\PKLSPULZVU0UJVTL ;H_;YLH[TLU[MYVT(KVW[PUN-9: PZZ\LKI`4PUPZ[Y`VM-PUHUJL[OLHSSV^HUJLZOV\SKILKLK\J[PISL MVY[H_W\YWVZLZ+\L[VP[Z[H_L_LTW[Z[H[\ZPU[OLWYPVY`LHY[OL)HUROHZYL]LYZLK[OLKLMLYYLK[H_ HYPZPUNMYVTJVSSLJ[P]LPTWHPYTLU[HSSV^HUJLVMYL[YVZWLJ[P]LS` ;OLLќLJ[VMWYPVY`LHYHKQ\Z[TLU[[V[OL)HURHYLHZMVSSV^Z! As at 1 January 2012 As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMÄUHUJPHSWVZP[PVU Asset 3VHUZÄUHUJPUNHUKHK]HUJLZ (i) *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL (i) 5,405,351 51,007 5,456,358 Liabilities .V]LYUTLU[NYHU[Z-\UKZ (i) +LWVZP[ZMYVTJ\Z[VTLYZ (i) 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[ (ii) +LMLYYLK[H_SPHIPSP[PLZ (ii) Equity Retained earnings (ii) 8,071,872 51,007 8,122,879 .YVZZSVHUZÄUHUJPUNHUKHK]HUJLZSLZZPUKP]PK\HSPTWHPYTLU[HSSV^HUJL Agrobank Annual Report 2013 231 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 34. PRIOR YEAR ADJUSTMENTS (cont’d) ;OLLќLJ[VMWYPVY`LHYHKQ\Z[TLU[[V[OL)HURHYLHZMVSSV^Z!JVU[»K As at 31 December 2012 As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMÄUHUJPHSWVZP[PVU Asset 3VHUZÄUHUJPUNHUKHK]HUJLZ (i) *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL (i) 5,827,907 39,741 5,867,648 Liabilities .V]LYUTLU[NYHU[Z-\UKZ (i) +LWVZP[ZMYVTJ\Z[VTLYZ (i) 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[ (ii) +LMLYYLK[H_SPHIPSP[PLZ (ii) (iii) Equity Retained earnings (ii) (iii) 7,744,612 39,741 7,784,353 .YVZZSVHUZÄUHUJPUNHUKHK]HUJLZSLZZPUKP]PK\HSPTWHPYTLU[HSSV^HUJL 232 Agrobank Annual Report 2013 34. PRIOR YEAR ADJUSTMENTS (cont’d) +L[HPSZVMWYPVY`LHYHKQ\Z[TLU[ZHYLHZMVSSV^Z!JVU[»K ;OLLќLJ[VMWYPVY`LHYHKQ\Z[TLU[[V[OL)HURHYLHZMVSSV^Z!JVU[»K -VY[OLÄUHUJPHS`LHYLUKLK+LJLTILY As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMJVTWYLOLUZP]LPUJVTL (SSV^HUJLMVYPTWHPYTLU[VUSVHUZ ÄUHUJPUNHUKHK]HUJLZ (i) .V]LYUTLU[NYHU[Z-\UKZYLSLHZLK (i) 0UJVTLMYVT0ZSHTPJIHURPUNI\ZPULZZ (ii) ;H_L_WLUZL (ii) (iii) ;OLLќLJ[VMWYPVY`LHYHKQ\Z[TLU[[V[OL0ZSHTPJIHURPUNUV[LZHYLHZMVSSV^Z! As at 1 January 2012 As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMÄUHUJPHSWVZP[PVU Asset Financing and advances* (i) *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL (i) +LMLYYLK[H_HZZL[Z (ii) 4,263,859 70,317 4,334,176 .YVZZSVHUZÄUHUJPUNHUKHK]HUJLZSLZZPUKP]PK\HSPTWHPYTLU[HSSV^HUJL Agrobank Annual Report 2013 233 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 34. PRIOR YEAR ADJUSTMENTS (cont’d) +L[HPSZVMWYPVY`LHYHKQ\Z[TLU[ZHYLHZMVSSV^Z!JVU[»K ;OLLќLJ[VMWYPVY`LHYHKQ\Z[TLU[[V[OL0ZSHTPJIHURPUNUV[LZHYLHZMVSSV^Z!JVU[»K As at 1 January 2012 As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMÄUHUJPHSWVZP[PVUJVU[»K Liabilities .V]LYUTLU[NYHU[Z-\UKZ (i) +LWVZP[ZMYVTJ\Z[VTLYZ (i) 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[ (ii) Equity 0ZSHTPJIHURPUNM\UK (ii) 5,453,574 70,317 5,523,891 As at 31 December 2012 As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMÄUHUJPHSWVZP[PVU Asset Financing and advances* (i) *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL (i) +LMLYYLK[H_HZZL[Z (ii) 5,037,463 80,157 5,117,620 .YVZZSVHUZÄUHUJPUNHUKHK]HUJLZSLZZPUKP]PK\HSPTWHPYTLU[HSSV^HUJL 234 Agrobank Annual Report 2013 34. PRIOR YEAR ADJUSTMENTS (cont’d) +L[HPSZVMWYPVY`LHYHKQ\Z[TLU[ZHYLHZMVSSV^Z!JVU[»K ;OLLќLJ[VMWYPVY`LHYHKQ\Z[TLU[[V[OL0ZSHTPJIHURPUNUV[LZHYLHZMVSSV^Z!JVU[»K As at 31 December 2012 As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMÄUHUJPHSWVZP[PVUJVU[»K Liabilities .V]LYUTLU[NYHU[Z-\UKZ (i) +LWVZP[ZMYVTJ\Z[VTLYZ (i) 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[ (ii) Equity 0ZSHTPJIHURPUNM\UK (ii) 7,133,139 80,157 7,213,296 As at 1 January 2012 As previously Prior year As stated adjustment restated RM’000 RM’000 RM’000 :[H[LTLU[VMJVTWYLOLUZP]LPUJVTL (SSV^HUJLMVYPTWHPYTLU[VUÄUHUJPUN and advances (i) .V]LYUTLU[NYHU[Z-\UKZYLSLHZLK (i) 0UJVTLMYVT0ZSHTPJIHURPUNI\ZPULZZ (ii) ;H_JYLKP[ (ii) Agrobank Annual Report 2013 235 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING ;OLZ[H[LVMHќHPYZHUK[OLYLZ\S[ZVM0ZSHTPJIHURPUNVWLYH[PVUZ\UKLY[OL0ZSHTPJ IHURPUNKP]PZPVUPUJS\KLKPU[OLÄUHUJPHSZ[H[LTLU[ZHYLZ\TTHYPZLKHZMVSSV^Z! STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 Note 2013 2012 RM’000 RM’000 Restated 0UJVTLMYVT0ZSHTPJIHURPUNI\ZPULZZ a .V]LYUTLU[NYHU[ZYLSLHZLK (SSV^HUJLMVYPTWHPYTLU[VUÄUHUJPUN and advances b 5L[PUJVTL 352,671 285,791 6]LYOLHKL_WLUZLZ c 7YVÄ[SVZZILMVYL[H_HUKaHRH[ 53,694 (4,477) ;H_L_WLUZLPUJVTL AHRH[ 7YVÄ[HM[LY[H_HUKaHRH[ 31,972 14,547 6[OLYJVTWYLOLUZP]LSVZZPUJVTL[VILYLJSHZZPÄLK [VWYVÄ[VYSVZZPUZ\IZLX\LU[WLYPVKZ 5L[V[OLYJVTWYLOLUZP]LSVZZ[VILYLJSHZZPÄLK [VWYVÄ[VYSVZZPUZ\IZLX\LU[WLYPVKZ (65,210) (1,056) ;V[HSJVTWYLOLUZP]LSVZZPUJVTLMVY[OL`LHY (33,238) 13,491 236 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2013 Note 31 December 31 December 1 January 2013 2013 2012 RM’000 RM’000 RM’000 Restated Assets *HZOHUKZOVY[[LYTM\UKZ d +LWVZP[Z^P[OÄUHUJPHS institutions e 0U]LZ[TLU[ZLJ\YP[PLZ M Financing and advances g 7YVWLY[`WSHU[HUKLX\PWTLU[ Other assets h +LMLYYLK[H_HZZL[Z TOTAL ASSETS 9,319,970 9,018,712 7,069,682 LIABILITIES AND EQUITY Liabilities +LWVZP[ZMYVTJ\Z[VTLYZ i 7YVÄ[WH`HISLHUKV[OLYZ j -PUHUJPUNZJOLTLM\UK k .V]LYUTLU[NYHU[Z .V]LYUTLU[NYHU[Z-\UKZ l Total Liabilities 8,206,501 7,667,095 6,709,860 Equity 0ZSHTPJIHURPUNM\UK m Total Equity 1,113,469 1,351,617 359,822 TOTAL LIABILITIES AND EQUITY 9,319,970 9,018,712 7,069,682 Agrobank Annual Report 2013 237 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) STATEMENT OF CASH FLOW FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 2013 2012 RM’000 RM’000 Restated CASH FLOW FROM OPERATING ACTIVITIES 7YVÄ[SVZZILMVYL[H_HUKaHRH[ (KQ\Z[TLU[ZMVY! (SSV^HUJLMVYPTWHPYTLU[VUÄUHUJPUNHUKHK]HUJLZ 7YVÄ[L_WLUZLVUÄUHUJPUNZJOLTLM\UK +LWYLJPH[PVUVMWYVWLY[`WSHU[HUKLX\PWTLU[ >YP[LVќVMWYVWLY[`WSHU[HUKLX\PWTLU[ (TVY[PZH[PVUVM! :WLJPHS-\UKMVY;LYLUNNHU\-PZOLY`¸+2:7¹ .V]LYUTLU[.YHU[Z6WLYH[PUN .V]LYUTLU[.YHU[Z3H\UJOPUN 187,353 174,011 6WLYH[PUNWYVÄ[ILMVYL^VYRPUNJHWP[HSJOHUNLZ *OHUNLPUÄUHUJPUNHUKHK]HUJLZ Change in other assets *OHUNLPUKLWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ *OHUNLPUKLWVZP[ZMYVTJ\Z[VTLYZ *OHUNLPUWYVÄ[WH`HISLZHUKV[OLYZ *OHUNLPUKLMLYYLK[H_HZZL[Z 9LPTI\YZLTLU[[VJVU]LU[PVUHSZ`Z[LT *HZONLULYH[LKMYVTVWLYH[PUNHJ[P]P[PLZ 63,534 1,123,524 AHRH[WHPK 5L[JHZONLULYH[LKMYVTVWLYH[PUNHJ[P]P[PLZ 60,102 1,120,670 238 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) STATEMENT OF CASH FLOW FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 (cont’d) 2013 2012 RM’000 RM’000 Restated CASH FLOW FROM INVESTING ACTIVITIES 0UJYLHZLPUPU]LZ[TLU[ZLJ\YP[PLZ 7\YJOHZLVMWYVWLY[`WSHU[HUKLX\PWTLU[ Net cash used in investing activities (437,659) (1,486,279) CASH FLOW FROM FINANCING ACTIVITIES 7YVÄ[WHPKVUÄUHUJPUNZJOLTLM\UK 7YVJLLKZMYVT! -\UK-VY-VVK¸-¹ -VVK7YVK\J[PVU*YLKP[:JOLTL¸:274¹ Micro Enterprise Fund .V]LYUTLU[NYHU[Z3H\UJOPUN\[PSPZLK 9LWH`TLU[ZVMÄUHUJPUNZJOLTLM\UK +P]PKLUKZWHPK 5L[JHZO\ZLKPUÄUHUJPUNHJ[P]P[PLZ (73,926) (102,957) NET DECREASE IN CASH AND CASH EQUIVALENTS (451,483) (468,566) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 1,095,975 1,564,541 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 644,492 1,095,975 CASH AND CASH EQUIVALENTS CONSIST OF: *HZOHUKZOVY[[LYTM\UKZ 644,492 1,095,975 Agrobank Annual Report 2013 239 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) H 0UJVTLMYVT0ZSHTPJIHURPUNI\ZPULZZ 2013 2012 RM’000 RM’000 0UJVTLMYVTÄUHUJPUN 0UJVTLMYVTÄUHUJPHSPUZ[P[\[PVUZ 7YVÄ[ZMYVTKLWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ 7YVÄ[ZMYVTPU]LZ[TLU[ZLJ\YP[PLZ! /;4 AFS .HPUVUKPZWVZHSVMPU]LZ[TLU[ZLJ\YP[PLZ! AFS Fee Income -PUHUJPUNWYVJLZZPUNMLLZ )HURPUNZLY]PJLMLLZ 9LPTI\YZLTLU[VMNHWWPUNJVZ[ (Y9HOU\MLLZ :WLJPHS-\UKMVY;LYLUNNHU\-PZOLY`¸+2:7¹ :[HќÄUHUJPUN 9LPTI\YZLTLU[VM:WLJPHS9LSPLM.YHU[MVY-SVVK¸:9.-¹ 6[OLYPUJVTL 578,346 616,269 3LZZ!7YVÄ[H[[YPI\[HISL[VJ\Z[VTLYZ (S4\KOHYHIHOKLWVZP[Z (S4\KOHYHIHOZH]PUNZ (NYVWYPTH -P_LK9L[\YU0U]LZ[TLU[(JJV\U[P (NYV7LYKHUHP (NYVPKLWVZP[Z (S>HKPHOZH]PUNZ (NYV4\KHP (NYV;L[HUNNHP 153,616 188,122 240 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) H 0UJVTLMYVT0ZSHTPJIHURPUNI\ZPULZZJVU[»K 2013 2012 RM’000 RM’000 Restated 3LZZ!7YVÄ[WHPKVUÄUHUJPUNZJOLTLM\UK -\UK-VY-VVK¸-¹ -VVK7YVK\J[PVU*YLKP[:JOLTL¸:274¹ 3VHUMVY:THSSHUK4LKP\T:PaL0UK\Z[YPLZ¸72:¹ -\UK-VY:THSSHUK4LKP\T:PaLK0UK\Z[YPLZ¸;02:¹ 5VU-VVK7YVK\J[PVU*YLKP[:JOLTL¸:27)4¹ Micro Enterprise Fund Others 0UJVTLMYVT0ZSHTPJIHURPUNI\ZPULZZ 423,825 424,363 6M^OPJO! 7YVÄ[PUJVTLLHYULKVUPTWHPYLKÄUHUJPUNHUKHK]HUJLZ 10,176 16,195 I (SSV^HUJLMVYPTWHPYTLU[VUÄUHUJPUN 2013 2012 RM’000 RM’000 Restated -PUHUJPUNHUKHK]HUJLZ! (SSV^HUJLMVY[OL`LHY (TV\U[^YP[[LUIHJR\WVUYLJV]LYPLZ HUKYL]LYZHSVMHSSV^HUJL 0UKP]PK\HSPTWHPYTLU[HSSV^HUJLUL[ *VSSLJ[P]LPTWHPYTLU[HSSV^HUJLUL[ )HKKLI[ZHUKÄUHUJPUN! >YP[[LUVќ Recovered 81,161 153,582 Agrobank Annual Report 2013 241 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) J 6]LYOLHKL_WLUZLZ 2013 2012 RM’000 RM’000 Personnel costs :HSHY`HSSV^HUJLHUKIVU\Z ,7-JVU[YPI\[PVUZ :6*:6JVU[YPI\[PVUZ :[Hќ^LSMHYL 9L[PYLTLU[ILULÄ[ZZJOLTL Others 187,452 208,157 Maintenance costs 7YPU[PUNZ[H[PVULY`HUKVѝJLZ\WWSPLZ Insurance +LWYLJPH[PVUVMWYVWLY[`WSHU[HUKLX\PWTLU[ >H[LYHUKLSLJ[YPJP[` 9LU[HSVMWYLTPZLZ (TVY[PZH[PVUVMJVTW\[LYZVM[^HYL )\PSKPUNHUKVѝJLTHPU[LUHUJL 9LU[HSVMJVTW\[LYZ *VTW\[LYTHPU[LUHUJL Others 79,870 54,241 4HYRL[PUNL_WLUZLZ (K]LY[PZPUNHUKWYVTV[PVUZ Others 4,313 4,001 242 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) J 6]LYOLHKL_WLUZLZJVU[»K 2013 2012 RM’000 RM’000 .LULYHSHKTPUPZ[YH[P]LL_WLUZLZ *VTT\UPJH[PVUL_WLUZLZ :LJ\YP[`JOHYNLZ 3LNHSMLLZ Others 27,342 23,869 298,977 290,268 K *HZOHUKZOVY[[LYTM\UKZ 31 December 31 December 2013 2012 RM’000 RM’000 *HZOHUKIHURIHSHUJLZ :OVY[[LYTKLWVZP[ZTH[\YPUN^P[OPU[OYLLTVU[OZ! 3PJLUZLKIHURZ 6[OLYÄUHUJPHSPUZ[P[\[PVUZ 644,492 1,095,975 L +LWVZP[Z^P[OÄUHUJPHSPUZ[P[\[PVUZ 31 December 31 December 2013 2012 RM’000 RM’000 6[OLYÄUHUJPHSPUZ[P[\[PVUZ 60,000 - Agrobank Annual Report 2013 243 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) M 0U]LZ[TLU[ZLJ\YP[PLZ 31 December 31 December 2013 2012 RM’000 RM’000 Debt Securities (-:H[MHPY]HS\L *VYWVYH[LIVUKZ .V]LYUTLU[0U]LZ[TLU[0ZZ\L 2,683,253 2,363,021 HTM - at amortised cost *VYWVYH[LIVUKZ *VTTLYJPHSWHWLYZ .V]LYUTLU[0U]LZ[TLU[0ZZ\L 179,242 199,020 Net 2,862,495 2,562,041 4H[\YP[`Z[Y\J[\YLMVYPU]LZ[TLU[Z /;4PZHZMVSSV^Z! 4H[\YP[`^P[OPUZP_TVU[OZ )L[^LLUZP_TVU[OZ[VVUL`LHY )L[^LLUVUL`LHY[V[OYLL`LHYZ )L[^LLU[OYLL`LHYZ[VÄ]L`LHYZ 4VYL[OHUÄ]L`LHYZ 179,242 199,020 244 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) (g) Financing and advances 31 December 31 December 1 January 2013 2012 2012 RM’000 RM’000 RM’000 Restated Restated Agrocash ))(7YVQLJ[HUK=LOPJSL -\UK-VY-VVK¸-¹ (Y9HOU\ -PZOLY`)VH[-PUHUJPUN:JOLTL¸:7)7¹ 4<:;P 6PS7HST9LWSHU[PUN:JOLTL¸;(:2:¹ 4(7HUK477)-PUHUJPUN -PUHUJPUNMVY:THSSHUK4LKP\T:PaL 0UK\Z[YPLZ¸72:¹ 5VU-VVK7YVK\J[PVU*YLKP[ :JOLTL¸:27)4¹ -VVK7YVK\J[PVU*YLKP[:JOLTL¸:274¹ )LSPH;HUP:JOLTL ,U[YLWYLUL\Y:JOLTLMVY.YHK\H[LZ ¸:<;2:-PUHUJPUN¹ :WLJPHS-\UK-VY;LYLUNNHU\-PZOLY`¸+2:7¹ -\UK-VY:THSSHUK4LKP\T:PaL 0UK\Z[YPLZ¸;02:¹ 4VKHS7\ZPUNHUP 7HKK`*YLKP[:JOLTL Micro ESP 52,( Trade Finance Insani 9,101,526 8,458,560 6,308,502 3LZZ! :[HќÄUHUJPUNHUKHK]HUJLZ Less: 0UKP]PK\HSPTWHPYTLU[HSSV^HUJL *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL Net 5,398,911 5,077,204 4,314,866 Agrobank Annual Report 2013 245 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) (g) Financing and advances (cont’d) 4V]LTLU[PUPTWHPYLKNYVZZÄUHUJPUNHUKHK]HUJLZPZHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated ([ILNPUUPUNVM[OL`LHY (KKP[PVUZK\YPUN[OL`LHY 9LJSHZZPÄLKHZUVUPTWHPYLKK\YPUN[OL`LHY 9LJV]LYPLZK\YPUN[OL`LHY 9LJSHZZPÄLK[VVќIHSHUJLZOLL[K\YPUN[OL`LHY (TV\U[^YP[[LUVќ ([LUKVM[OL`LHY 446,192 578,495 0TWHPYLKNYVZZÄUHUJPUNHUKHK]HUJLZHUHS`ZLKI`ZLJ[VYZHYLHZMVSSV^Z! Sectors: Support Crops 3P]LZ[VJR -PZOLY` -VYLZ[Y` 6[OLYHNYPJ\S[\YHSIHZLKWYVJLZZPUN 446,192 578,495 246 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) (g) Financing and advances (cont’d) 0TWHPYLKNYVZZÄUHUJPUNHUKHK]HUJLZHUHS`ZLKI`YLNPVUZHYLHZMVSSV^Z! 31 December 31 December 2013 2012 RM’000 RM’000 Restated Regions: 2\HSH3\TW\Y Selangor Pahang 7LYHR 5LNLYP:LTIPSHU4LSHRH 1VOVY 2LSHU[HU 2LKHO7LYSPZ :HYH^HR :HIHO Pulau Pinang Terengganu 446,192 578,495 4H[\YP[`Z[Y\J[\YLMVYÄUHUJPUNHUKHK]HUJLZPZHZMVSSV^Z! 4H[\YP[`^P[OPUZP_TVU[OZ )L[^LLUZP_TVU[OZ[VVUL`LHY )L[^LLUVUL`LHY[V[OYLL`LHYZ )L[^LLU[OYLL`LHYZ[VÄ]L`LHYZ 4VYL[OHUÄ]L`LHYZ 5,766,570 5,491,789 Agrobank Annual Report 2013 247 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) (g) Financing and advances (cont’d) Financing by types and Shariah Contract 2013 BBA Bai-Al-Inah Qard RM’000 RM’000 RM’000 ;LYT-PUHUJPUN Revolving Financing *HZO3PUL 3,557,034 5,297,296 247,196 2012 (restated) ;LYT-PUHUJPUN - Revolving Financing *HZO3PUL - 2,889,060 5,012,972 556,528 (h) Other assets 31 December 31 December 2013 2012 RM’000 RM’000 7YVÄ[YLJLP]HISLMYVTPU]LZ[TLU[ZLJ\YP[PLZ 7YVÄ[YLJLP]HISL Foreclosed properties 7YVQLJ[3HKHUN)74:N;HZHU 0UJVTLYLJLP]HISLZMYVT(Y9HOU\ 9LM\UKHISLKLWVZP[ZHUKWYLWH`TLU[Z 63,756 51,355 248 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) P +LWVZP[ZMYVTJ\Z[VTLYZ 31 December 31 December 2013 2012 RM’000 RM’000 4\KOHYHIHO (S4\KOHYHIHOZH]PUNZ (S4\KOHYHIHONLULYHSKLWVZP[Z (NYV7LYKHUHP Patriot savings +LWVZP[ZLJ\YP[PLZ )HZPJ:H]PUN(JJV\U[ 4,038,954 5,081,136 5VU4\KOHYHIHO -P_LK9L[\YU0U]LZ[TLU[(JJV\U[P-90(P (S>HKPHOZH]PUNZ 5,912,217 5,470,764 4H[\YP[`Z[Y\J[\YLMVY(S4\KOHYHIHONLULYHSKLWVZP[Z HUK-90(0PZHZMVSSV^Z! >P[OPUZP_TVU[OZ )L[^LLUZP_TVU[OZ[VVUL`LHY )L[^LLUVUL`LHY[V[OYLL`LHYZ )L[^LLU[OYLL`LHYZ[VÄ]L`LHYZ 2,833,242 2,388,142 Agrobank Annual Report 2013 249 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) P +LWVZP[ZMYVTJ\Z[VTLYZJVU[»K ;OLKLWVZP[ZHYLZV\YJLKMYVT[OLMVSSV^PUN[`WLZVMJ\Z[VTLYZ! 31 December 31 December 2013 2012 RM’000 RM’000 .V]LYUTLU[ Individuals +VTLZ[PJI\ZPULZZLU[LYWYPZLZ +VTLZ[PJV[OLYLU[P[PLZ +VTLZ[PJUVUIHURPUNPUZ[P[\[PVUZ 5,912,217 5,470,764 Q 7YVÄ[ZWH`HISLHUKV[OLYZ 31 December 31 December 1 January 2013 2012 2012 RM’000 RM’000 RM’000 Restated Restated 6[OLYSPHIPSP[PLZ 7YV]PZPVUMVY\UKPZ[YPI\[LKWYVÄ[ 9L[PYLTLU[ILULÄ[ZZJOLTL AHRH[WH`HISL 428,766 284,623 192,804 250 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) R -PUHUJPUNZJOLTLM\UKZ 31 December 31 December 2013 2012 RM’000 RM’000 -\UK-VY-VVK¸-¹ 6PS7HST9LWSHU[PUN:JOLTLº»;(:2:»» -VVK7YVK\J[PVU*YLKP[:JOLTL¸:274¹ -PZOLY`)VH[-PUHUJPUN:JOLTL¸:7)7¹ ,U[YLWYLUL\Y:JOLTLMVY.YHK\H[LZ ¸:<;2:-PUHUJPUN¹ 5VU-VVK7YVK\J[PVU*YLKP[ :JOLTL¸:27)4¹ -PUHUJPUNMVY:THSSHUK4LKP\T :PaL0UK\Z[YPLZ¸72:¹ 477)-\UKZ 7HKK`*YLKP[:JOLTL Micro Enterprise Fund 1,555,347 1,618,988 Agrobank Annual Report 2013 251 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) (l) Government Grants - Funds 31 December 31 December 1 January 2013 2012 2012 RM’000 RM’000 RM’000 Restated Restated +L]LSVWTLU[7YVNYHTTLMVY/HYKJVYL 7VVY¸779;¹ ,U[YLWYLUL\Y:JOLTLMVY .YHK\H[LZ¸:<;2:¹ :WLJPHS-\UKMVY;LYLUNNHU\ -PZOLY`¸+2:7¹ -\UKMVY4PUPZ[Y`@V\[OHUK :WVY[Z¸+2):¹ )\TPW\[LYH*VTTLYJPHSHUK0UK\Z[YPHS *VTT\UP[`:JOLTL/<)¸477)/<)¹ 5H[PVUHS2L`,JVUVTPJ(YLH¸52,(¹ 4PJYV,JVUVTPJ:[PT\SH[PVU7HJRHNL ¸4PJYV,:7¹ 257,500 229,250 242,453 252 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) T 0ZSHTPJIHURPUNM\UK 31 December 31 December 1 January 2013 2012 2012 RM’000 RM’000 RM’000 Restated Restated Retained earnings .LULYHSYLZLY]L 9LPTI\YZLTLU[[VJVU]LU[PVUHSZ`Z[LT 0U]LZ[TLU[YL]HS\H[PVUYLZLY]L 1,113,469 1,351,617 359,822 Retained earnings ([ILNPUUPUNVM[OL`LHY 7YVÄ[HM[LYaHRH[ +P]PKLUKZWHPK ([LUKVM[OL`LHY 569,578 546,606 532,059 Reimbursement to conventional system ([ILNPUUPUNVM[OL`LHY 5L[YLPTI\YZLTLU[ ([LUKVM[OL`LHY (250,370) (54,460) (1,032,171) Investment revaluation reserve ([ILNPUUPUNVM[OL`LHY 9L[HPULKWYVÄ[(-: 6[OLYJVTWYLOLUZP]LSVZZ ([LUKVM[OL`LHY (55,481) 9,729 10,192 Agrobank Annual Report 2013 253 Notes to the Financial Statements for the Financial Year Ended 31 December 2013 (cont’d) 35. ISLAMIC BANKING (cont’d) (n) Capital adequacy 31 December 31 December 2013 2012 RM’000 RM’000 % % Restated )LMVYLKLK\J[PUNWYVWVZLKKP]PKLUK! Core capital ratio 9PZR^LPNO[LKJHWP[HSYH[PV (M[LYKLK\J[PUNWYVWVZLKKP]PKLUK! Core capital ratio 9PZR^LPNO[LKJHWP[HSYH[PV 31 December 31 December 2013 2012 *VTWVULU[ZVM;PLY0HUK;PLY00JHWP[HS RM’000 RM’000 Restated Tier I capital .LULYHSYLZLY]L 9LPTI\YZLTLU[[VJVU]LU[PVUHSZ`Z[LT Retained earnings 3LZZ!+LMLYYLK[H_HZZL[Z Total Tier I capital 1,100,969 1,301,472 Tier II capital *VSSLJ[P]LPTWHPYTLU[HSSV^HUJL .V]LYUTLU[NYHU[Z .V]LYUTLU[NYHU[M\UKZ Total Tier II capital 427,984 355,109 Total capital base 1,528,953 1,656,581 ;OLLSPNPISLHTV\U[MVY;PLY00JHWP[HSPZSPTP[LK[VVUS`JVSSLJ[P]LPTWHPYTLU[HSSV^HUJL VUUVUPTWHPYLKSVHUZHK]HUJLZHUKÄUHUJPUN 254 Agrobank Annual Report 2013 35. ISLAMIC BANKING (cont’d) (n) Capital adequacy (cont’d) ;OLIYLHRKV^UVMYPZR^LPNO[LKHZZL[ZPU[OL]HYPV\ZJH[LNVYPLZVMYPZR^LPNO[ZPZHZMVSSV^Z! Notional Risk- RM’000 ^LPNO[LK RM’000 6ќIHSHUJLZOLL[YPZR^LPNO[LKHZZL[Z ;V[HSYPZR^LPNO[LKHZZL[ZH[+LJLTILY 9,251,989 6,695,359 6ќIHSHUJLZOLL[YPZR^LPNO[LKHZZL[Z ;V[HSYPZR^LPNO[LKHZZL[ZH[+LJLTILY 8,978,296 6,120,348 Agrobank Annual Report 2013 255 CORPORATE INFORMATION “Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase, and invoke [Allah’s blessings] upon ƚŚĞŵ͘/ŶĚĞĞĚ͕LJŽƵƌŝŶǀŽĐĂƟŽŶƐĂƌĞ reassurance for them.” Surah At-Taubah: 103 ŽƌƉŽƌĂƚĞ/ŶĨŽƌŵĂƟŽŶ BOARD OF DIRECTORS NOMINATING COMMITTEE TAN SRI FAIZAH MOHD TAHIR Chairman Independent Non-Executive Chairman Tan Sri Faizah Mohd Tahir DATUK SERI CHE MOHD HASHIM ABDULLAH Members Non-Independent Non-Executive Director Datuk Johar Che Mat Datuk Dr. Saharan Haji Anang RASHIDAH MOHD SIES Md. Hilmi Datuk Hj. Md. Noor Non-Independent Non-Executive Director Ng Chih Kaye +H[PU9\aHPUH>HU/HUPɈ DATUK DR. SAHARAN HAJI ANANG (resigned : 28 February 2013) Independent Non-Executive Director REMUNERATION COMMITTEE DATUK JOHAR CHE MAT Independent Non-Executive Director Chairman Datuk Johar Che Mat MD. HILMI DATUK HAJI MD. NOOR Independent Non-Executive Director Members Rashidah Mohd Sies NG CHIH KAYE Ng Chih Kaye Independent Non-Executive Director BOARD RISK MANAGEMENT COMMITTEE DATO’ SALEHUDDIN SAIDIN (appointed : 3 May 2013) Chairman Independent Non-Executive Director Datuk Dr. Saharan Haji Anang DATO’ WAN MOHD FADZMI WAN OTHMAN Members 7YLZPKLU[*OPLM,_LJ\[P]L6ɉJLY Datuk Johar Che Mat Ng Chih Kaye DATIN RUZAINA WAN HANIFF Dato’ Salehuddin Saidin (resigned : 28 February 2013) (appointed : 3 May 2013) Independent Non-Executive Director +H[PU9\aHPUH>HU/HUPɈ (resigned : 28 February 2013) 258 Agrobank Annual Report 2013 BOARD AUDIT COMMITTEE BOARD INVESTMENT COMMITTEE Chairman Chairman Md. Hilmi Datuk Hj Md. Noor Ng Chih Kaye Members Members Datuk Dr. Saharan Hj Anang Datuk Dr. Saharan Haji Anang Rashidah Mohd Sies Datuk Johar Che Mat Datuk Johar Che Mat Md Hilmi Datuk Haji Md Noor BOARD CREDIT COMMITTEE BOARD INFORMATION TECHNOLOGY COMMITTEE Chairman Datuk Johar Che Mat Chairman Md. Hilmi Datuk Hj Md. Noor Members Datuk Dr. Saharan Haji Anang Members Rashidah Mohd Sies Datuk Johar Che Mat Ng Chih Kaye Ng Chih Kaye BOARD GENERAL PURPOSE COMMITTEE MANAGEMENT COMMITTEE Chairman Chairman Tan Sri Faizah Mohd Tahir Dato’ Wan Mohd Fadzmi Wan Othman Members Members Datuk Dr. Saharan Haji Anang Azizan Ahmad +H[PU9\aHPUH>HU/HUPɈ Muslim Hussain (resigned : 28 February 2013) Asmuni Sudin Ng Chih Kaye Norhisham Ahmad (resigned : 6 April 2014) Nik Abdullah Shukri Nik Mustapha (resigned : 18 February 2014) Syed Naufal Shahabudin Syed Abdul Jabbar Shahabudin Mad Yusof Yazid (appointed : 15 July 2013) Agrobank Annual Report 2013 259 SHARIAH COMMITTEE 9LNPZ[LYLK6ɉJL Chairman Aras 3, Bangunan Agrobank Dr. Mohamed Fairooz Abdul Khir Leboh Pasar Besar 50726 Kuala Lumpur Members Professor Madya Dr. Atikullah Hj. Abdullah Headquarters Dr. Muhammad Yamin Ismail Dr Mohamad Sabri Zakaria Bank Pertanian Malaysia Berhad (appointed : June 2013) Bangunan Agrobank Tuan Haji Ismail Mahayudin Leboh Pasar Besar Prof. Dr. Saiful Azhar Rosly 50726 Kuala Lumpur (resigned : 31 March 2013) Tel : (603)-2731 1600 Mohd Zakhiri Md.Nor (resigned : 31 March 2013) Website : www.agrobank.com.my Secretary Auditors Hishamuddin Ab Hamid Tetuan (Messrs.) Ernst & Young COMPANY SECRETARY Aras 23A, Menara Milenium Jalan Damanlela ZARINA NADZIMUDDIN Pusat Bandar Damansara MAICSA 7060104 50490 Kuala Lumpur (appointed : 1 March 2013) Tel : (603)-7495 8000 SYED NAUFAL SHAHABUDIN SYED ABDUL Fax : (603)-2095 5332 JABBAR SHAHABUDIN MIA 22994 (resigned : 27 June 2013) Date of Incorporation MOHD AZIZUL AZMI 31 March 2008 under the Companies Act 1965 MAICSA 7051421 (resigned : 22 January 2013) 260 Agrobank Annual Report 2013 Corporate Status Bank Pertanian Malaysia Berhad (BPMB) was registered and incorporated on 31 March 2008 under the Companies Act 1965. BPMB which is also commercially known as Agrobank, is a Government-Linked Company (GLC) under the Ministry of Finance Incorporated (MKD). However, funding for the agricultural sector is guided by policies set by the Ministry of Agriculture and Agro-Based Industry. Agrobank Annual Report 2013 261 Corporate Directory HEAD OFFICE Leboh Pasar Besar Peti Surat 10815 50726 Kuala Lumpur Tel.: 03-2731 1600 Fax: 03-2691 4908 187 Branches nationwide 262 Agrobank Annual Report 2013 Kuala Lumpur AGROBANK IBU PEJABAT AGROBANK BANDAR TASIK AGROBANK UTC KUALA Leboh Pasar Besar SELATAN LUMPUR (AGRO CORNER) Peti Surat 10815 No. 27G & 29G, Jalan 8/146 Lot T3-11, Tingkat 3, Pudu Sentral 50726 Kuala Lumpur. Bandar Tasik Selatan 55100 Kuala Lumpur Tel : 03-2691 2754 57100 Kuala Lumpur. Tel : 03-2026 8292 Fax : 03-2691 4599 Tel : 03-9056 5700 / 03-9056 5900 Fax : 03-2026 8294 Fax : 03-9056 1200 AGROBANK KUALA LUMPUR AGROBANK PUTRAJAYA Tingkat 1 AGROBANK AMPANG POINT (AGROCORNER) Leboh Pasar Besar 92, Jalan Memanda 2 d/a Business Development Centre Peti Surat 13013 Ampang Point (BDA) 50796 Kuala Lumpur. 68000 Ampang, Kuala Lumpur Kementerian Pertanian & Industri Tel : 03-2691 2754 / 03-26922362 Tel : 03-4252 2960 / 03-4252 3827 Asas Tani, Fax : 03-2691 4599 Fax : 03-4252 5185 Wisma Tani, Lot 4G1, Presint 4 Pusat Pentadbiran Kerajaan AGROBANK NEGERI AGROBANK JALAN TUANKU Persekutuan, W.P. KUALA LUMPUR ABDUL RAHMAN 62624 Putrajaya No. 141-2, 143-2, Jalan 2/3A No. 498 Jalan Tuanku Abdul Tel : 03-8870 1790 / 03-8870 1790 Pusat Bandar Utara Rahman 68100 Batu Caves, Kuala Lumpur. 50100 Kuala Lumpur. Tel : 03-6137 6433 / 6137 3433 / Tel : 03-4042 5046 / 03-4042 6079 6138 9285 / 6138 5762 Fax : 03-4041 3873 Fax : 03-61389881 / 61377646 AGROBANK CHERAS AGROBANK SELAYANG No. 65 & 65-1, Jalan Dwitasik 1 No. 141, Jalan 2/3A Dataran Dwitasik Pusat Bandar Utara Bandar Sri Permaisuri 68100 Batu Caves, Kuala Lumpur. 56000 Kuala Lumpur. Tel : 03-6136 9469 / 03-6136 8453 Tel : 03-9173 2389 / 03-9173 2387 Fax : 03-6136 0410 Fax : 03-9173 2385 AGROBANK PANDAN INDAH AGROBANK GREENWOOD No. 14, ACD/1, Menara A (KIOSK) Persiaran MPAJ SH 25, Jalan 7 Jalan Pandan Utama Taman Greenwood Pandan Indah 68100 Batu Caves, Kuala Lumpur. 55100 Kuala Lumpur. Tel : 03-6186 8613 / 03-6186 8614 Tel : 03-4295 9466 / 03-4296 1419 Fax : 03-6186 8615 Fax : 03-4295 5229 Agrobank Annual Report 2013 263 Selangor BUSINESS CENTRE NEGERI AGROBANK KLANG AGROBANK TELUK PANGLIMA SELANGOR No. 7, Lorong Batu 3 GARANG No. 3 - 5 Kawasan 18 168, Jalan Utama 2 Pusat Dagangan UMNO Shah Alam 41300 Klang, Selangor. Taman Jaya Utama Persiaran Damai, Seksyen 11 Tel : 03-3342 8212 / 3341 0662 / 42500 Teluk Panglima Garang 40100 Shah Alam, Selangor. 3343 6584 Selangor. Tel : 03-5510 4268 / Fax : 03-3342 8203 Tel : 03-3122 0980 / 3122 0982 03-5512 4667 / 03-5519 3537 Fax : 03-3122 0984 Fax : 03-5510 6740 AGROBANK KAJANG No. 2-G & 2-1, Reko Sentral AGROBANK KUALA SELANGOR AGROBANK SHAH ALAM Jalan Reko Sentral 4 No. 23 & 25, Jalan Yu 1, Taman Yu, No. 3-1 6Ɉ1HSHU9LRV Sungai Buloh Pusat Dagangan UMNO Shah Alam 43000 Kajang, Selangor. 45800 Jeram, Selangor. Persiaran Damai, Seksyen 11 Tel : 03-8736 6337 / 03-8736 6364 Tel : 03-3264 8620 / 3264 7704 40000 Shah Alam, Selangor. / 8736 9425 Fax : 03-3264 8096 Tel : 03-5519 8250 / 5519 8433 Fax : 03-8736 6471 Fax : 03-5519 9017 AGROBANK SUBANG JAYA AGROBANK SEKINCHAN No. 79, Jalan SS 19/6 AGROBANK TANJUNG KARANG No. 50 & 50A 47500 Subang Jaya, Selangor. Lot 131, Jalan Bomba Jalan Menteri Besar 1 Tel : 03-5632 9578 / 5632 9579 45500 Tanjung Karang, Selangor. Sekinchan Business Centre Fax : 03-5632 0856 Tel : 03-3269 8084 / 3269 8052 45400 Sekinchan, Selangor. Fax : 03-3269 8100 Tel : 03-3241 0326 / 3241 3796 AGROBANK SABAK BERNAM Fax : 03-3241 0307 (KIOSK) AGROBANK BANTING No. 82A & 83A, Jalan Menteri, 123 & 125 AGROBANK SUNGAI BULOH 45200 Sabak Bernam, Selangor. Jalan Sultan Abdul Samad Lot 2380 Jalan 1A/1 Tel : 03-3216 2673 / 3216 2488 42700 Banting, Selangor. Bandar Baru Sungai Buloh Fax : 03-3216 2566 Tel : 03-3187 2552 / 3187 1558 / 47000 Sungai Buloh, Selangor. 3181 7099 Tel : 03-6156 7207 / 6156 7208 Fax : 03-3187 3080 Fax : 03-6156 7209 / 6140 1531 AGROBANK KUALA KUBU BARU AGROBANK SALAK TINGGI No. 38, Jalan Dato’ Hj. Kamarudin No. E 061 & E 071, Block No. E 44000 Kuala Kubu Baru, Selangor. Phase 1B, Cosmoplex Salak Tinggi Tel : 03-6064 1775 / 6064 1779 43900 Sepang, Selangor. Fax : 03-6064 1815 Tel : 03-8706 2153 / 8706 2154 Fax : 03-8706 3032 AGROBANK SUNGAI BESAR Lot 4746 & 4747 Jalan Sungai Limau, 45300 Sungai Besar, Selangor. Tel : 03-3224 2522 / 3224 2902 / 3224 3192 Fax : 03-3224 1717 264 Agrobank Annual Report 2013 Pahang BUSINESS CENTRE NEGERI AGROBANK MARAN AGROBANK SRI JAYA (KIOSK) PAHANG No. 49, Bangunan LKNP, No. 11, Taman Mas Tingkat 1, No. 57, Jalan Tun Ismail, Jalan Bandar Baru, Kampung Sri Jaya 25000 Kuantan, Pahang. 26500 Maran, Pahang. 26500 Maran, Pahang. Tel : 09-5156 842 / 5156 933 / Tel : 09-4771 591 Tel : 09-4789 859 5150 243 Fax : 09-4771 066 Fax : 09-4789 859 Fax : 09-5157524 AGROBANK BANDAR TUN AGROBANK KUALA KRAU AGROBANK KUANTAN RAZAK (KIOSK) No. 57, Jalan Tun Ismail KTR- 007 & 008 Kedai Dara, No. 14 Jalan Besar, 25000 Kuantan, Pahang. 26900 Bandar Tun Razak, Pahang. Kuala Krau, Tel : 09-5158 164 / 5156 853 Tel : 09-4458 398 28050 Temerloh, Pahang. Fax : 09-5156 768 Fax : 09-4458 399 Tel : 09-2861588/09-2861129 Fax : 09-2861309 AGROBANK KUALA ROMPIN AGROBANK BENTONG No.20 Bandar Baru No. 49 Jalan Loke Yew AGROBANK MENTAKAB (KIOSK) 26800 Kuala Rompin, Pahang. 28700 Bentong, Pahang. No. 129 Jalan Temerloh Tel : 09-4145 343 / 4145 122 Tel : 09-2221 178 28400 Mentakab, Pahang. Fax : 09-4145 192 Fax : 09-2226 086 Tel : 09-2779 740 Fax : 09-2779 742 AGROBANK RAUB AGROBANK JERANTUT No. 43, Jalan Dato Abdullah. Lot 1 Seksyen 1, AGROBANK CHEROH 27600 Raub, Pahang. Bangunan Yayasan Pahang (AGRO CORNER) Tel : 09-3551 750 / 3553 780 27000 Jerantut, Pahang. No. 2, Gerai Majlis Daerah, Fax : 09-3555 099 Tel : 09-2662 966 27620 Raub, Pahang. Fax : 09-2662 554 Tel : 09-3697 820 AGROBANK TEMERLOH Fax : 09-3697 185 F- 58, Jalan Tok Muda Awang Ngah AGROBANK PEKAN Bandar Baru No. 1, Lorong Perdagangan 1 AGROBANK TRAS 28000 Temerloh, Pahang. Pusat Perdagangan (AGRO CORNER) Tel : 09-2961 877 / 2961 231 / Jalan Engku Muda Mansor No. 27, Jalan Besar, 2960 361 26600 Pekan, Pahang. 27600 Raub, Pahang. Fax : 09-2963 851 Tel : 09-4222722 / 09-4222922 Tel : 09-3615 590 Fax : 09-4222022 Fax : 09-3615 700 AGROBANK KUALA LIPIS No. 95A & 95B, Lot 95 AGROBANK JENGKA AGROBANK LANCHANG Bandar Baru Seberang Jelai Lot 8&9, Lorong Baiduri, Nadi Kota (AGRO CORNER) 27200 Kuala Lipis, Pahang. 26400 Bandar Jengka, Pahang. No. 32, Jln Dato’ Syed Abdullah 1, Tel : 09-3126 694 / 3126 695 Tel : 09-4663 942 28500 Lanchang, Pahang. Fax : 09-3126 790 Fax : 09-4663 941 Tel : 09-280 3167 Fax : 09-280 3168 AGROBANK TRIANG AGROBANK SUNGAI RUAN No 36, Jalan Dagangan 7, (KIOSK) AGROBANK UTC PAHANG Pusat Dagangan Triang, No. 573, Jalan Besar (AGRO CORNER) 28300 Triang, Pahang. 27500 Sungai Ruan, Pahang. Tingkat 2, Bangunan UTC Pahang, Tel : 09-2558 570/ 2557 696/ 255 Tel : 03-3689 062 Jalan Stadium 7699 Fax : 03-3686 312 25200 Kuantan, Pahang. Fax : 09-2551 114 Tel : 09-5124 011 Fax : 09-5124 010 Agrobank Annual Report 2013 265 Negeri Sembilan / Melaka AGROBANK NEGERI NEGERI AGROBANK NILAI AGROBANK MERLIMAU SEMBILAN/MELAKA/JOHOR PT 4698 Jalan TS 1/1 Lot JC 108, Jalan BMU 2 Blok 13-2, Seremban City Centre Taman Semarak Bandar Baru Merlimau Utara Jalan Pasar Besar 71800 Nilai, Negeri Sembilan. 77300 Merlimau, Melaka. 70000 Seremban, Negeri Sembilan. Tel : 06-7993 455 / 7993 473 Tel : 06-2633 587 / 2633 615 Tel : 06-7625 476 / 7615 218 / Fax : 06-7993 480 Fax : 06-2633 622 7610 528 Fax : 06-7620 744 AGROBANK BAHAU AGROBANK PASIR PANJANG No. 18 & 19 Jalan Kiara 1 (AGRO CORNER) AGROBANK SEREMBAN Pusat Perniagaan Kiara No. 54, Jalan Besar Blok 13-G, Seremban City Centre 72100 Bahau, Negeri Sembilan. 71250 Pasir Panjang Jalan Pasar Besar Tel : 06-4543 352 / 06-4546 508 / Port Dickson, Negeri Sembilan. 70000 Seremban, Negeri Sembilan. 06-4549 518 / 06-4549 513 Tel : 06-6619 920 / 6610 379 Tel : 06-7639 541 / 7624 875 Fax : 06-4544 690 Fax : 06-6610 360 Fax : 06-7628 152 AGROBANK MELAKA AGROBANK SIMPANG DURIAN AGROBANK PORT DICKSON Wisma Dato’ Haji Mohamad (AGRO CORNER) No. 925, Jalan Lama Jalan Hang Tuah No. 15, Pekan Desa Permai 71000 Port Dickson 75300 Melaka. 72400 Simpang Durian Negeri Sembilan. Tel : 06-2844 537 / 2844 519 Negeri Sembilan. Tel : 06-6473 427 / 6474107 Fax : 06-2839 754 Tel : 06-4914 633 Fax : 06-6475 324 Fax : 06-4914 009 AGROBANK ALOR GAJAH AGROBANK KUALA PILAH No. 1, Kompleks Perniagaan Lot 3 & 4, Jalan Raja Melewar 78000 Alor Gajah, Melaka. 72000 Kuala Pilah Tel : 06-5562 600 / 5562 719 Negeri Sembilan. Fax : 06-5565 327 Tel : 06-4811 251 / 4814 251 / 4843 911 AGROBANK JASIN Fax : 06-4814 727 JA 1763, Bandar Baru Jasin 77000 Jasin, Melaka. AGROBANK KUALA KLAWANG Tel : 06-5295 324 / 5293 413 / No. 204, Jalan Pertang 5296 091 71600 Kuala Klawang Fax : 06-5295 325 Negeri Sembilan. Tel : 06-6136 433 / 6137 375 Fax : 06-6137 595 266 Agrobank Annual Report 2013 Johor AGROBANK NEGERI JOHOR AGROBANK KOTA TINGGI AGROBANK SIMPANG RENGGAM No. 66 Susur 1 No. 16 & 18, Jalan Niaga 2 (KIOSK) Jalan Tun Abdul Razak Pusat Perdagangan Kota Tinggi No. 5, Jalan Kijang Kompleks Medan Cahaya 81900 Kota Tinggi, Johor. Taman Mohd Yassin 80000 Johor Bahru, Johor. Tel : 07-8832 042 / 8833 471 86200 Simpang Renggam, Johor. Tel : 07-2279 576 / 2247 788 / Fax : 07-8831 050 Tel : 07-7559 890 / 7558 600 2237 201 Fax : 07-7558 304 Fax : 07-2237 377 AGROBANK MERSING No. 74, Jalan Ismail AGROBANK TANGKAK AGROBANK JOHOR BAHRU 86800 Mersing, Johor. No. 3A & 5, Jalan Muar, No. 30 & 32, Jln Padi Emas 6/1 Tel : 07-7991 434 / 7992 988 Pusat Perniagaan Naib Long Bandar Baru Uda Fax : 07-7994 022 84900 Tangkak, Johor. 81200 Johor Bahru, Johor. Tel : 06-9786 401 / 9786 402 Tel : 07-2344761 / 07-2344762 AGROBANK KLUANG Fax : 06-9786 400 Fax : 07-2344751 / 07-2344759 No. 60, Jalan Duku 86000 Kluang, Johor. AGROBANK PARIT YUSOF AGROBANK MUAR Tel : 07-7722 436 / 7721 800 (KIOSK) No. 63-1, Jalan Ali Fax : 07-7736 170 12, Jalan Parit Yusof 84000 Muar, Johor. 83600 Batu Pahat, Johor. Tel : 06-9523 446/9515 625 AGROBANK LABIS Tel : 07-4163 479 Fax : 06-9511 400 No. 92 & 94, Jalan Segamat 85300 Labis, Johor. AGROBANK FELDA TENGGAROH 2 AGROBANK BATU PAHAT Tel : 07-9254 417 / 9254 418 (KIOSK) No. 4 & 5, Jalan Mengkudu Fax : 07-9254 416 No. 1A, Bangunan IKS Taman Makmur Bangunan Tenggaroh 2 83000 Batu Pahat, Johor. AGROBANK BUKIT GAMBIR 86810 Mersing, Johor. Tel : 07-4342 182/4348 281 No. 1, Jalan Gambir 5 Tel : 07-7911 045 / 7911 090 Fax : 07-4310 202 Bandar Baru Bukit Gambir Fax : 07-7911 143 84800 Ledang, Johor. AGROBANK SEGAMAT Tel : 06-9762 305 / 9762 315 AGROBANK PAGOH (KIOSK) No. 52, Jalan Susur Genuang, Fax : 06-9762 084 No. 163-3, Tingkat Bawah Kg. Abdullah Jalan Sekolah 85000 Segamat, Johor. AGROBANK KULAI Pekan Pagoh Tel : 07-9312 346/9312 327 No. 23, Jalan Putra 1 84600 Muar, Johor. Fax : 07-9321 046 Bandar Putra Tel : 06-9746 322 / 06-9746 351 81000 Kulai Jaya, Johor. Fax : 06-9746 412 AGROBANK PONTIAN Tel : 07-6639 863 No. 660-1, Jalan Taib Fax : 07-6639 866 Wisma Rokijah 82000 Pontian, Johor. AGROBANK YONG PENG (KIOSK) Tel : 07-6871 955 / 6871 958 No. 3 Jalan Besar Fax : 07-6874 290 83700 Yong Peng, Johor. Tel : 07-4674 858 / 4677 300 AGROBANK RENGIT Fax : 07-4675 654 No. 75 & 76, Jalan Besar 83100 Rengit Tel : 07-4241 304 / 4242 523 Fax : 07-4242 367 Agrobank Annual Report 2013 267 Perak BUSINESS CENTRE NEGERI AGROBANK BAGAN SERAI AGROBANK TAIPING PERAK No. 106 & 108, Jalan Besar No. 37, Ting. Bawah dan Satu No. 15 & 17, Tingkat 2 & 3 34300 Bagan Serai, Perak. Market Square Persiaran Greentown 5 Tel : 05-7215 377 / 7215 376 / 34000 Taiping, Perak. Pusat Perdagangan Greentown 721 2376 Tel : 05-8089 834 / 8089 835 30450 Ipoh, Perak. Fax : 05-721 2 414 / 721 2601 Fax : 05-8089 837 Tel : 05-2559 380 / 2559 394 / 2559 964 AGROBANK PANTAI REMIS AGROBANK SRI ISKANDAR Fax : 05-2423 518 No. 2190, Jalan Besar No. 8, Persiaran Dataran 1, Bandar 34900 Pantai Remis, Perak. Sri Iskandar AGROBANK IPOH Tel : 05-6771 725 / 6772 352 32600 Sri Iskandar. No. 15 & 17, Ting. Bawah & 1 Fax : 05-6771 892 Tel : 05-3712 743 / 3712 745 Persiaran Greentown 5 Fax : 05-3712 744 Pusat Perdagangan Greentown AGROBANK KUALA KANGSAR 30450 Ipoh, Perak. No. K6 & K7, Jalan Bendahara AGROBANK KAMPAR Tel : 05-2548 742 / 2540 840 / Bandar Baru No. 46, Jalan Balai 2556 094 33000 Kuala Kangsar, Perak. 31900 Kampar Fax : 05-2424 715 Tel : 05-7761 155 / 7763 149 / Tel : 05-4666 009 / 4666 010 7766 682 Fax : 05-4666 016 AGROBANK TELUK INTAN Fax : 05-7762 922 No. 42, Medan Mahkota Jalan Pasar AGROBANK SITIAWAN 36000 Teluk Intan, Perak. No. 109 & 110, Taman Sejati 2 Tel : 05-6222 644 / 6226 816 / Jalan Lumut 6218 400 32000 Sitiawan, Perak. Fax : 05-6215 986/6229 489 Tel : 05-6917 490 / 6917 487 / 6924 540 Fax : 05-6917 061 268 Agrobank Annual Report 2013 Pulau Pinang AGROBANK BUTTERWORTH AGROBANK BUKIT MERTAJAM AGROBANK TELUK BAHANG No. 49, Jalan Selat No. 3341 & 3342, Jalan Pusat (KIOSK-AGRO BANKING Taman Selat Perniagaan Alma CENTRE) 12000 Butterworth, Pulau Pinang. 14000 Bukit Mertajam 48-0-6, Jalan Hassan Abbas Tel : 04-3314 539 / 3314 540 Pulau Pinang. 11050 Teluk Bahang Fax : 04-3316 923 Tel : 04-5512 300 / 5512 301 Pulau Pinang. Fax : 04-5512 302 Tel : 04-8852 657 AGROBANK KEPALA BATAS Fax : 04-8851 640 No. 1 & 3, Jalan Bertam AGROBANK TASEK GELUGOR 13200 Kepala Batas, Pulau Pinang. (KIOSK) Tel : 04-5751 422 /5755 906 Lot 7, No. 3025 Fax : 04-5755 232 Jalan Hashim Awang Taman Gelugor Indah AGROBANK BAYAN BARU 13300 Tasek Gelugor No. 16 & 18 Jalan Tengah Seberang Perai Utara Taman Penanti Pulau Pinang. 11900 Bayan Baru, Pulau Pinang. Tel : 04-5733832 / 04-5732775 Tel : 04-6443 604 / 6452 395 / Fax : 04-5731981 6464 579 Fax : 04-6446 052 / 6452395 AGROBANK BATU MAUNG (KIOSK) AGROBANK NIBONG TEBAL No. 21-1, Lintang Batu Maung 1, No. 1695 & 1696 Jalan Besar 11960 Bayan Lepas, Pulau Pinang. 14300 Nibong Tebal, Pulau Pinang. Tel : 04-6264150 Tel : 04-5931 144 / 5933 451 Fax : 04-6262517 Fax : 04-5933 992 AGROBANK PENANTI (KIOSK) AGROBANK BALIK PULAU No. 15, Jalan Penanti 1 No. 858-E, Jalan Besar Taman Penanti Taman Seri Indah 14000 Bukit Mertajam 11000 Balik Pulau, Pulau Pinang. Pulau Pinang. Tel : 04-8660 912 / 8666 021 Tel : 04-5213 651 Fax : 04-8660 686 Fax : 04-5212 258 Agrobank Annual Report 2013 269 Kedah/Perlis AGROBANK ALOR SETAR AGROBANK JITRA AGROBANK KUALA PERLIS 1518-A, Jln Tunku Ibrahim No. 95A & B, Jalan PJ 3 (KIOSK) Peti Surat 95 Kompleks Pekan Jitra 2 No. 24 Jalan Besar 05710 Alor Star, Kedah. 06000 Jitra, Kedah. 02000 Kuala Perlis, Perlis. Tel : 04 –7332 545 / 04-7332 558 / Tel : 04 – 9170 120 /04-9170 121 Tel : 04-9855 550 / 04-9851 215 04-7310 952 Fax : 04 – 9170 411 Fax : 04-9855 778 Fax : 04 –7307813 AGROBANK PENDANG AGROBANK SERDANG AGROBANK KODIANG Tingkat Bawah (AGRO CORNER) No. 81 E, Jalan Jitra Kompleks Perniagaan No. 20, Tingkat Bawah Bangunan 06100 Kodiang, Kedah. Majlis Daerah Pendang Rumah Kedai MDBB Tel : 04 – 9255 137 / 04-9255 166 06700 Pendang, Kedah. Jalan Bekas Lombong Fax : 04 – 9255 896 Tel : 04 – 7596 163 /04-7596 446 09800 Serdang, Kedah. Fax : 04 – 7596 458 Tel : 04-4078909 AGROBANK GUAR CHEMPEDAK Lot 318, Jalan Yan AGROBANK SIK Pekan Guar Cempedak No. 438, Jalan Tunku lbrahim 08800 Guar Cernpedak, Kedah. 08200 Sik, Kedah. Tel : 04 – 4686 280 /04-4687 281 Tel : 04 – 4695 282 /04-4695 059 Fax : 04 – 4687 986 Fax : 04 – 4695 775 AGROBANK BALING AGROBANK KUALA NERANG Blok B, Kompleks IADP No. 4, Mukim Belimbing Daerah Baling Padang Terap 09100 Baling, Kedah. 06300 Kuala Nerang, Kedah. Tel : 04 – 4701 342 /04-4701 722 / Tel : 04 – 7866 433 / 04-7868 334 04-4704 628 Fax : 04 – 7866 390 Fax : 04 – 4702 333 AGROBANK SIMPANG EMPAT AGROBANK LANGKAWI Lot 1658, Mukim Kayang, No. 20 & 22, Jln. Pandak Mayah 4 02700 Simpang Empat, Perlis. Pusat Bandar Kuah Tel : 04-9807 234 / 04-9807 763 07000 Langkawi, Kedah. Fax : 04-9807 807 Tel : 04 – 9666 931/04-9668 076 / 04-9662 990 AGROBANK KANGAR Fax : 04 – 9666 830 No. 25, Jalan Indera Kayangan 01000 Kangar, Perlis. AGROBANK SUNGAI PETANI Tel : 04-9768 479 / 04-9768 477 No. 12 & 13, Jln PPZ 1 Fax : 04-9768 482 Pusat Perniagaan Zamrud 08000 Sungai Petani, Kedah. AGROBANK KULIM Tel : 04 – 4218 608 / 04-4215 780 No. 4 Kompleks PKNK Fax : 04 – 4426 310 Jalan Tengku Mohd Asaad 09000 Kulim, Kedah. Tel : 04-4908 015 / 04-4908 017 Fax : 04-4908 016 270 Agrobank Annual Report 2013 Terengganu AGROBANK KUALA TERENGGANU AGROBANK KUALA BERANG AGROBANK MARANG (KIOSK) No. 106, Jalan Sultan Ismail No. 344 Jalan Besar Lot 2 20200 Kuala Terengganu 21700 Kuala Berang, Terengganu. Rumah Kedai MARA Terengganu. Tel : 09-6811 434 / 6811 433 / 21600 Marang, Terengganu. Tel : 09-6222 044 / 6222 126 / 6813 419 Tel : 09-6182 771 / 6183 477 6220 139 Fax : 09-6811 806 Fax : 09-6182 809 Fax : 09-6220 479 AGROBANK CENEH BARU AGROBANK KUALA BESUT AGROBANK DUNGUN No. 3, Bandar Baru Ceneh (KIOSK) K-42, Jalan Haji Zainal Abidin 24000 Kemaman, Terengganu. PT 2833, Rumah Kedai 23000 Dungun, Terengganu. Tel : 09-8730 454 / 09-8730 578 Jalan Semarak Tel : 09-8481 146 / 8482 127 Fax : 09-8730 461 22300 Kuala Besut, Terengganu. Fax : 09-8483 698 Tel : 09-6974 885 AGROBANK BUKIT PAYONG Fax : 09-6904 936 AGROBANK JERTEH PT92, Perkedaian Bukit Payong, Lot 182, Jalan Tuan Hitam Fasa 2, 21400 Marang, Terengganu. 22000 Jerteh, Terengganu. Tel : 09-6191006/09-6191925 Tel : 09-6971 261 / 6971 443 / Fax : 09-6190934/6191811 6972 400 Fax : 09-6972 196 AGROBANK BANDAR PERMAISURI (KIOSK) AGROBANK KEMAMAN No. 3 Tingkat Bawah No. KCP 55, Jalan Sulaimani Bangunan MDS Business Centre Point 22100 Setiu, Terengganu. 24000 Kemaman, Terengganu. Tel : 09-6099 735 Tel : 09-8593 455 / 8593 254 Fax : 09-6099 162 Fax : 09-8595 757 Agrobank Annual Report 2013 271 Kelantan AGROBANK NEGERI KELANTAN AGROBANK TANAH MERAH AGROBANK TUMPAT Tingkat 2, Seksyen 12 Lot 219 & 220, Jalan Hospital, No. 127 Jalan Hulu Pasar Jalan Padang Garong 17500 Tanah Merah, Kelantan. 16200 Tumpat, Kelantan. 15000 Kota Bharu, Kelantan. Tel : 09-9556100 / 9557 287 Tel : 09-7258 279 Tel : 09-7487 684 / 7481 295 / Fax : 09-9556 169 Fax : 09-7258 278 7476 733 Fax : 09-7471 521 AGROBANK JELI AGROBANK RANTAU PANJANG Lot PT 1527 Jalan Kuala Balah (KIOSK) AGROBANK KOTA BHARU 17600 Bandar Baru Jeli, Kelantan. PT 199 Kompleks Perkedaian Baru Seksyen 12, Jalan Padang Garong Tel : 09-9440 252 / 9440 886 17200 Rantau Panjang, Kelantan. 15000 Kota Bharu, Kelantan. Fax : 09-9440 469 Tel : 09-7950 520 / 7950 877 Tel : 09-7481 211 /7440 134 / Fax : 09-7950 160 7462 616 AGROBANK GUA MUSANG Fax : 09-7462 143 PT 8288 & 8289, Wisma Galas, AGROBANK MACHANG (KIOSK) 18300 Gua Musang, Kelantan. Lot PT(B) 145, Jalan Pasir Puteh AGROBANK KUALA KRAI Tel : 09-9122 542 / 9122 244 Bandar Baru Lot 1520 Fax : 09-9122 949 18500 Machang, Kelantan. Jalan Tengku Zainal Abidin Tel : 09-9753 391 18000 Kuala Krai, Kelantan. AGROBANK KUBANG KERIAN Fax : 09-9751 480 Tel : 09-9666 116 / 9663 436 PT 1662 & PT 1663 Fax : 09-9660 634/9663 349 Bangunan Yakin AGROBANK JELAWAT (KIOSK) Jalan Raja Perempuan Zainab II PT 94, Pekan Jelawat AGROBANK PASIR PUTEH Kenali, Kubang Kerian 16370 Bachok, Kelantan. 2988-B, Lot 471 16150 Kota Bharu, Kelantan. Tel : 09-7783 075 Jalan Sekolah Keb. Lelaki Tel : 09-7640 532 / 7640 533 / Fax : 09-7780 957 16800 Pasir Puteh, Kelantan. 7640 630 Tel : 09-7867 311 / 7866 258 Fax : 09-7640 529 AGROBANK PASAR SITI Fax : 09-7867 130 KHADIJAH (AGRO CORNER) AGROBANK RTC KOTA BHARU Tingkat 1 AGROBANK BACHOK Rural Tranformation Centre Pasar Besar Siti Khadijah Lot 294, Bandar Bachok Lot Bank 2, Aras G Buluh Kubu 16300 Bachok, Kelantan. Pejabat Pentadbiran TEMAN 15000 Kota Bharu, Kelantan. Tel : 09-7788 393 / 7788804 Lot 3309, Batu 4 Tel : 09-7461 198 Fax : 09-7789977/7788807 Lebuhraya Pasir Mas-Salor 15150 Kota Bharu, Kelantan. AGROBANK PASIR MAS Tel : 09-7433 067 / 7433 271 / Lot 308, 128 & 129 7444 303 Jalan Pasir Pekan Fax : 09-7433354 17000 Pasir Mas, Kelantan. Tel : 09-7909 098 / 7900 544 Fax : 09-7900 688 272 Agrobank Annual Report 2013 Terengganu AGROBANK KUALA AGROBANK KUALA BERANG AGROBANK MARANG (KIOSK) TERENGGANU No. 344 Jalan Besar Lot 2 No. 106, Jalan Sultan Ismail 21700 Kuala Berang, Terengganu. Rumah Kedai MARA 20200 Kuala Terengganu Tel : 09-6811 434 / 6811 433 / 21600 Marang, Terengganu. Terengganu. 6813 419 Tel : 09-6182 771 / 6183 477 Tel : 09-6222 044 / 6222 126 / Fax : 09-6811 806 Fax : 09-6182 809 6220 139 Fax : 09-6220 479 AGROBANK CENEH BARU AGROBANK KUALA BESUT No. 3, Bandar Baru Ceneh (KIOSK) AGROBANK DUNGUN 24000 Kemaman, Terengganu. PT 2833, Rumah Kedai K-42, Jalan Haji Zainal Abidin Tel : 09-8730 454 / 09-8730 578 Jalan Semarak 23000 Dungun, Terengganu. Fax : 09-8730 461 22300 Kuala Besut, Terengganu. Tel : 09-8481 146 / 8482 127 Tel : 09-6974 885 Fax : 09-8483 698 AGROBANK BUKIT PAYONG Fax : 09-6904 936 PT92, Perkedaian Bukit Payong, AGROBANK JERTEH Fasa 2, 21400 Marang, Terengganu. Lot 182, Jalan Tuan Hitam Tel : 09-6191006/09-6191925 22000 Jerteh, Terengganu. Fax : 09-6190934/6191811 Tel : 09-6971 261 / 6971 443 / 6972 400 AGROBANK BANDAR Fax : 09-6972 196 PERMAISURI (KIOSK) No. 3 Tingkat Bawah AGROBANK KEMAMAN Bangunan MDS No. KCP 55, Jalan Sulaimani 22100 Setiu, Terengganu. Business Centre Point Tel : 09-6099 735 24000 Kemaman, Terengganu. Fax : 09-6099 162 Tel : 09-8593 455 / 8593 254 Fax : 09-8595 757 Agrobank Annual Report 2013 273 Sabah BUSINESS CENTRE SABAH AGROBANK KENINGAU AGROBANK KOTA MARUDU Tingkat 2, No. 135 Jalan Gaya, Block D, Lot 1, Keningau Plaza Blok D, Lot 22 Pekan Baru Goshen Beg Berkunci 145 Peti Surat No. 2065 89100 Kota Marudu, Sabah. 88994 Kota Kinabalu, Sabah. 89009 Keningau, Sabah. Tel : 088-661 793 / 663 021 Tel : 088-288 237 / 288 228 / Tel : 087-334 353/333 373/331 353 Fax : 088-662 325 288 211 / 267 071 Fax : 087-332 487 Fax : 088-288 222 AGROBANK KOTA AGROBANK LAHAD DATU KINABATANGAN AGROBANK KOTA KINABALU MDLD 4155, Lot 58, Tingkat 1 & 2 Block A, Lot 1 & 2 No. 135, Jalan Gaya Bandar Wilayah, Jalan Bunga Raya Kota Kinabatangan, New Township Beg Berkunci 145 91110 Lahad Datu, Sabah. 90200 Kota Kinabatangan, Sabah. 88994 Kota Kinabalu, Sabah. Tel : 089-882 561 / 888 562 Tel : 089-562 087 / Tel : 088-288 288 / 288 283 / Fax : 089-882 291 089-562 088 / 288 200 / 288 285 089-562 089 / Fax : 088-288 280 AGROBANK KOTA BELUD 089-562 091 Lot 3 & 4, Blok E, Pekan Baru Fax : 089-562 093 AGROBANK TAWAU 89150 Kota Belud, Sabah. No. 7 Block N, Jalan Dunlop Tel : 088-977 141 / 975 125 / Bandar Sabindo, Peti Surat 60157 975 137/975 145 91011 Tawau, Sabah. Fax : 088-977 152 Tel : 089-773 222 / 773 291 / 773 294 / 770 202 AGROBANK BEAUFORT Fax : 089-765 677 Lot 13 & 13A Ground & First Floor, Blok B AGROBANK SANDAKAN New Beaufort Jaya Menara Rickoh, Tingkat Bawah Peti Surat 506 Indah Commercial Complex 89800 Beaufort, Sabah. Bandar Indah, Mile 4 North Road Tel : 087-201 301 / 201 305 / 90715 Sandakan, Sabah. 201 303 / 201 306 Tel : 089-275 958 / 275 524 Fax : 087-201 302 Fax : 089-216 705 274 Agrobank Annual Report 2013 Sarawak BUSINESS CENTRE SARAWAK AGROBANK MIRI AGROBANK SARATOK Tingkat 2 & 3 Lot 1305, Ground & First Floor No. 20, Lot 636, Pekan Saratok Lot 518 (No. 15H), Section 6 KTLD Centre Point Commercial Centre 95400 Saratok, Sarawak. Jalan Kulas Tengah Jalan Melayu Tel : 083-437 328 / 437 337 93400 Kuching, Sarawak. 98000 Miri, Sarawak. Fax : 083-437 326 Tel : 082-424 577 / 429 077 / Tel : 085-411 801 / 411 818 / 241 652 / 235 091 411 802 AGROBANK BETONG Fax : 082 243 363 / 082-231 537 Fax : 085-420 986 Sublot 60, Bandar Baru Betong, 95700 Betong, Sarawak. AGROBANK KUCHING AGROBANK BINTULU Tel : 083-472 382 / 472 584 Tingkat Bawah & Tingkat 1 No. Lot 227, Sub Lot 31 Fax : 083-472 593 Lot 518 (No. 15H), Section 6 KTLD Parkcity Commerce Square Phase 3 Jalan Kulas Tengah Jalan Tun Ahmad Zaidi AGROBANK SIMUNJAN (KIOSK) 93400 Kuching, Sarawak. 97000 Bintulu, Sarawak. No.2, Lot 139, Jalan Nanas Tel : 082-410 126 / 410 827 / Tel : 086-330 015 / 330 016 94800 Simunjan, Sarawak. 410 671 / 410 419 Fax : 086-330 017 Tel : 082-803 812 / 803 629 Fax : 082-243 798 / 082-235 368 Fax : 082-803 695 AGROBANK LIMBANG AGROBANK SARIKEI Lot 1405, Jalan Buangsiol AGROBANK SELANGAU (KIOSK) No. 39, Lot 74, Jln. Haji Karim 98700 Limbang, Sarawak. Sub Lot No. 35, Peti Surat 429 Tel : 085-213 076 / 213 077 / Lot 95, Blok 14, 96107 Sarikei, Sarawak. 215 224 Selangau New Town Phase 2, Tel : 084-654 334 / 654 326 Fax : 085-213 487 96008 Sibu, Sarawak. Fax : 084-653 677 Tel : 084-891 189 AGROBANK MUKAH Fax : 084-891 142 AGROBANK LAWAS Sub Lot 59, Medan Setia Raja Lot 324, Jalan Trusan 96400 Mukah, Sarawak. AGROBANK PUSA (KIOSK) Peti Surat 197 Tel : 084-874 048 / 874 049 Sublot 5, Lot 1031, 98857 Lawas, Sarawak. Fax : 084-874 050 Block 6, Sablor Land District, Tel : 085-285 762 / 285 064 94950 Pusa, Sarawak. Fax : 085-285 055 AGROBANK KAPIT Tel : 083-465 326 / 083-465 327 Lot 353 & 354 Fax : 083-465 328 AGROBANK SIBU Jalan Yong Moo Chai No. 10D & 10E Peti Surat 355 AGROBANK DARO (KIOSK) Jalan Kampung Datu 96807 Kapit, Sarawak. Tingkat Bawah (Sublot No. 35), 96000 Sibu, Sarawak. Tel : 084-797 144 / 799 972 / Lot 158, Jalan Bazaar, Tel : 084-325 199 / 323 188 / 799 155 96200 Daro, Sarawak. 327 648 Fax : 084-797 006 Tel : 084-823 819 Fax : 084-323777 Fax : 084-823 820 AGROBANK SERIAN AGROBANK SRI AMAN Lot 291, Serian Bazaar AGROBANK LUBOK ANTU Sub Lot No. 8, Lot 1530, Blok 3 6Ɉ:LYPHU)`7HZZ (KIOSK) Jalan Sabu, Peti Surat 354 94700 Serian, Sarawak. No. 163, Lubok Antu Town District, 95008 Sri Aman, Sarawak. Tel : 082-876 823 / 876 824 95900 Lubok Antu, Sarawak. Tel : 083-321 788 / 320 839 / Fax : 082-876 825 Tel : 083-584 042 / 584 043 / 327 944 / 327 946 584 044 Fax : 083-320 923 Fax : 083-584 016 Agrobank Annual Report 2013 275 Sarawak AGROBANK JULAU (AGRO CORNER) Tingkat 1 Majlis Daerah Maradong & Julau Pejabat Cawangan Julau 96600 Julau, Sarawak. Tel : 084-734 013 Fax : 084-734 045 AGROBANK MATU (AGRO CORNER) Majlis Daerah Matu-Daro Bangunan Datuk Pengiran Hipni Jalan Datuk Pengiran Hipni 96250 Matu, Bahagian Mukah Sarawak. Tel : 084-832 166 Fax : 084-832 136 AGROBANK PAKAN (AGRO CORNER) Pejabat Daerah Pakan 96510 Pakan, Sarawak. Tel : 013-5750242 (Rohaizanizam Bin Hamzah) AGROBANK SPAOH (AGRO CORNER) Ground Floor Pejabat Daerah Kecil Spaoh 95600 Spaoh, Sarawak. Tel : 083-473 035 / 473 036 Fax : 083-473 037 276 Agrobank Annual Report 2013