A N N U A L R E P O R T 2 0 1 1

Focal A i m s

Focal Aims Holdings Berhad (Co. No. 17777-V) Focal Aims Holdings Berhad (Co. No. 17777-V) Contents

Notice of Annual General Meeting 2

Corporate Information & Board of Directors 3

Profile of Directors 4 - 5

Chairman's Statement 6 - 13

Financial Highlights 14 - 15

Group Corporate Structure 16

Audit Committee Report 17 - 21

Statement of Corporate Governance 22 - 27

Statement of Internal Control 28 - 29

Statement on Internal Audit Function 30

Statement of Directors' Responsibilities 31

Financial Statement 33 - 71

Particulars of Properties 72

Statistics on Shareholdings 73 - 76

Proxy Form 77 Focal s m i A 2 Focal Aims Holdings Berhad . Annual Report 2011 6. .To re-appoint Messrs. Ernst & Young 5. as Auditors of the

.T eeettefloigDrcoswoaertrn n retiringin are To followingDirectors who re-electthe 4. 3. To consider and, if thought fit, to pass the following the pass to fit, thought if and, consider To 3. 2. To approve the Directors’ Fees for the financial yearfinancial the Directors’forFees theapprove To 2. .To receive the Directors’ Report and Audited Financial 1. AGENDA Notice of Annual General Meeting purposes:- 8 eray 2012 February 28 80100 Johor Bahru, Johor Darul Ta'zim Johor Bahru, 4th Floor, Johor Tower, Jalan Gereja, Berhad will be held at theBerhadheldat will be nul eea Meig f oa Am Holdings Aims Focal of Meeting General Annual NOTICE IS HEREBY GIVEN THAT Company for the time being.” exceed 10 per centum of the issued share capital of the grgt nme o sae t b ise de not does issued be to shares of number aggregate boue icein de ft rvdd ht the that provided fit deem discretion, absolute and for such purposes as the directors may, in their in may, directors the as purposes such for and to such persons and upon such terms and conditionsand terms such upon andpersons such to until the conclusion of the next Annual General Meeting to issue and allot shares in the Company at any time any Companyat the sharesin allotand issue to pursuant to Section 132D of the Companies Act, 1965 authorities, the directors be and are hereby authorised, prvl o te eeat governmental/regulatory relevant the of approvals rils f soito o te opn ad the and Company the of Association of Articles “That subject always to the Companies Act, 1965, the - Authority to issue and allot shares ORDINARY RESOLUTION resolution:- o osdrad ftogt i,t aste following the pass to fit, thought if and, To consider As Special Business their remuneration. General Meeting and to authoriseGeneralDirectorsMeetingto theandfix to opn utl h cnlso o te et Annual next the of conclusion the until Company c Tee Boon Hin (c) b Datuk Che Mokhtar bin Che Ali (b) a Tan Sri Datuk Mohd Razali(a) of the Company. accordance with Article 80 of the Articles of Association ocuin f h nx Ana Gnrl Meeting.” General Annual next the of conclusion as a Director of the Company and to hold office until the attained the age of seventy (70) years, be re-appointed c,16, .Sn Kw Ye yCog h has who Chong, Yee Oy @ Kiw Seng E. 1965, Act, Ta prun t Scin 2() f h Companies the of 129(6) Section to pursuant “That Companies Act, 1965:- resolution pursuant to Section 129(6) of the the of 129(6) Section to pursuant resolution ended 30 September 2011. 01tgte ihteAdtr’Rpr hro. 2011 together with the Auditors’ Report thereon. Statements for the financial year ended 30 September bin Abdul Rahman at 10 a.m. 11.00 . MerantiHall,Tropical Inn

o te following the for the Thirty-Eighth on Tuesday, (Resolution8) (Resolution 7) (Resolution 6) (Resolution 5) (Resolution 4) (Resolution 3) (Resolution 2) (Resolution 1) .

Thirty-Eighth Annual General Meeting. .Te ntuet ponig poy ut e eoie a the at deposited be must proxy a appointing instrument The 5. February 2011 and which will lapse at the conclusion of the hrySvnh nul eea Meig ed n 25 on held Meeting General Annual Thirty-Seventh pursuant to the mandate granted to the Directors at the Directorsat the to grantedmandate the to pursuant oie n nw hrs n h Cmay ee issued were Company the in shares new no Notice, The General Mandate is a renewal. As at the date of thisGeneralrenewal. of ThedatetheMandate a at is As .Wee mme o te opn i a eep authorised exempt an is Company the of member a Where 4. project(s), working capital and/or acquisition(s). f hrs o te ups o fnig uue investment future funding of purpose the for shares of raising activities, including but not limited to further placing opn fr lomn o sae fr n psil fund possible any for shares of allotment for Company 3. In the case of a corporatemember,a of instrumentcasethe appointingthe Ina 3. h Gnrl adt wl poie lxblt t the to flexibility provide will Mandate General The (hereinafter referred to as the ‘General Mandate’). issued share capital of the Company for the time being time the for Company the of capital share issued number of the shares issued does not exceed 10% of the of sharesexceed10%theissuednotdoes number of conveninggenerala meeting provided aggregatethethat time to such persons in their absolute discretionabsolutewithouttheir in personssuch to time Directors of the Company to issue and allot shares at any The above Ordinary Resolution, if passed, will empower the Companies Act, 1965 Authority to issue shares pursuant to Section 132D of the Explanatory Note to Special Business: Dated: 31 January 2012 Kuala Lumpur .A member entitled to attend and vote at the Meeting is entitled to 2. Company Secretaries Mak Chooi Peng (MAICSA No: 7017931) Chua Siew Chuan (MAICSA No: 0777689) By Order of the Board 1. In respect of depositedsecurities,namesrespectmembersof whoseonly In 1. 7. To transact any other ordinary business of which due which businessof ordinary Toother transactany 7. Notes:- adjournment thereof. hn 8 or bfr te ie o hlig h Meig r any or Meeting the holding for time the before hours 48 than Jalan Gereja, 80100 Johor Bahru, Johor Darul Ta’zimless Darulnot Johor Bahru, Johor 80100Gereja, Jalan Company’s Registered Office, Suite 338, 3rd Floor, Johor Tower, account it holds. uhrsd oie my pon i rset f ah omnibus each of respect in appoint may nominee authorised hr i n lmt o h nme o pois hc te exempt the which proxies of number the to limit no is there beneficial owners in one securities account (“omnibus account”), nominee which holds ordinary shares in the Company for multiple its officer or attorney duly authorised. proxy must be either under its common seal or under the hand of have the same rights as the member to speak at the Meeting. proxy.proxyA appointedto attend andvote Meeting atthe shall the proportions of his shareholdings to be represented by eachrepresented shareholdingsby be proportionshis theto of one proxy,one appointmentsthe invalidspecifiesshallbe unlesshe need not be complied with. Where a member appoints more than the provisions of Section 149 (1)(b) of the Companies Act, 1965 proxy may but does not need to be a member of the Company and appoint more than one proxy to attend and vote in his stead. A stead.his in vote andattend proxy to one than appointmore attend the Meeting. “eea Meig eod f eoios) hl b eiil to eligible be shall Depositors”) of Record Meeting (“General per n h Rcr o Dpstr o 2 Fbur 2012 February 20 on Depositors of Record the in appear notice has been given.

Independent Non-Executive Director Tee BoonHin Independent Non-Executive Director Woon SeeChin Chairman (IndependentNon-Executive Director) Datuk CheMokhtarbinAli AUDIT COMMITTEE Fax No: 07-2246066 Tel No:07-2211833 Johor DarulTa'zim 80100 JohorBahru Jalan Gereja Johor Tower Floor Suite 338,3 REGISTERED OFFICE Tee BoonHin Woon SeeChin Pang Tin @Pang Yon Tin Phang Piow @Pang ChooIng Wan MustaphabinWan Ismail Datuk CheMokhtarbinAli Members Yee Yok Sen Group Executive Director E. SengKiw@Yee OyChong Group ManagingDirector Tan SriDatukMohdRazalibinAbdulRahman Chairman BOARD OFDIRECTORS Corporate Information &Board of Directors rd (Main Market) Bursa MalaysiaSecuritiesBerhad STOCK EXCHANGE LISTING AmBank (M)Berhad PRINCIPAL BANKERS 80400 JohorBahru Taman Pelangi 2, JalanKuning Menara Pelangi Suite 11.2,Level 11 Chartered Accountants Ernst &Young AUDITORS Fax No: 03-20949940 Tel No:03-20849000 50490 Kuala Lumpur Damansara Heights Pusat BandarDamansara Jalan Damanlela Level 7,MenaraMilenium (Co. No.36869-T) (Holdings)SdnBhd Securities Services REGISTRAR Mak ChooiPeng (MAICSANo:7017931) Chua SiewChuan(MAICSANo:0777689) COMPANY SECRETARIES Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 3 Focal s m i A 4 Focal Aims Holdings Berhad . Annual Report 2011 Committee and Budget Committee of the Company. and/or major shareholder of the Company. He is a shareholder of the Company. He is the Chairman of the Nomination Meetings held in the financial year ended 30 September 2011. He does not have any family relationship with any Director August 2003. He also holds directorships in several private limited companies. He has attended all of the four (4) Board Board of GLFB in November 2000 and was subsequently appointed as the Executive Director in February 2001 until 21 Berhad as the Group Managing Director for seven (7) years until he resigned in He July was 2000. re-appointed to the Lumber Fabricators and Builders Berhad ("GLFB"), a company listed on the Second Board of Bursa Malaysia Securities Australia and also a Chartered Accountant with the Malaysian Institute of Accountants. He was attached to General to attached was He Accountants. of Institute Malaysian the with Accountant Chartered a also and Australia Newcastle, New South Wales, Australia in 1973. He is an Associate Member of the Institute of Chartered Accountant of appointed to the Board of Focal on 9 November 1999. He graduated with a Bachelor of Commerce from the University of Encik Wan MustaphabinWanNon-Independent Non-ExecutiveDirectorandhewas a Malaysian, isa Ismail,aged62, the Company. Datuk also sits on the Executive Committee and Remuneration Committee of the Company. have any family relationship with any Director and/or major shareholder of the Company. He does not hold any shares in 1983. He has attended all the four (4) Board Meetings held in the financial year ended 30 September 2011. He does not Magistrate and Deputy Public Prosecutor. He has been an Advocate and Solicitor of the High Court of Malaya since Malaya of Court High the of Solicitor and Advocate an been has He Prosecutor.Public Deputy and Magistrate (B.A) and Bachelor of Law (LLB) degrees from Victoria University of Wellington, New Zealand. He was a former a was He Zealand. New Wellington, of University Victoria from degrees (LLB) Law of Bachelor and (B.A) Audit Committee of Focal. He has been on the Board of Focal since He 31 obtained 1997. January his Bachelor of Arts Datuk Che Mokhtar bin Che Ali, aged 57, a Malaysian, is an Independent Non-Executive Director and the Chairman of the Director. He is a shareholder of the Company. Mr. Yee Yok Sen is also a member of Budget Committee of the Company. the financial year ended 30 September 2011. He is the brother of Mr. E. Seng Kiw @ Yee Oy Chong, the Group Managing also holds directorships in several private limited companies. He has attended all of the four (4) Board Meetings held in Board of Focal on He 9 has November over 1999. thirty (30) years experience in the property development sector. He Mr. Yee Yok Sen, aged 54, a Malaysian, is a Non-Independent Group Executive Director of Focal. He was appointed to the the Executive Committee of the Company. Group Executive Director. He is a substantial shareholder of the Company. Mr. E. Seng Kiw @ Yee Oy Chong also sits in four (4) Board Meetings held in the financial year ended 30 September 2011. He is the brother of Mr. Yee Yok Sen, the strategic plans and policies. He holds directorships in several private limited companies. He has attended three (3) out of behind the Focal Group's growth. He is also responsible for the overall management and formulation of the Focal Group's has over forty (40) years working experience in property development, logging and saw milling and is the driving force the driving and is saw milling logging and propertyexperience indevelopment, years working forty (40) has over Corporation Berhad, a company listed on the Main Market of Bursa Malaysia Securities Berhad from 1985 to 1989. He ietr f h sbiir cmais FPB n FS. e ed h psto o Mngn Drco o Menang of Director Managing of position the held He FASB. and FAPSB companies, subsidiary the of Director Business Administration from Honolulu University in the United States of America ("USA"). He is also the Managing the also is He ("USA"). America of States United the in University Honolulu from Administration Business Managing Director of Focal. He was appointed to the Board of Focal on 9 November 1999. He holds a Masters Degree in Mr. E. Seng Kiw @ Yee Oy Chong, aged 70, a Malaysian, is a Non-Independent Executive Director and the Group the and Director Executive Non-Independent a is Malaysian, a 70, aged Chong, YeeOy @ Kiw Seng E. Mr. of the Company. He is the Chairman of the Remuneration Committee of the Company. have any family relationship with any Director and/or major shareholder of the Company. He is a substantial shareholder has attended two (2) out of four (4) Board Meetings held in the financial year ended 30 September 2011. Tan Sri does not Bhd and a major shareholder of the said company. He also serves on the board of Pembangunan Mas Melayu Berhad. He Properties Sdn Bhd (“FAPSB”) since 1994 and 1998 respectively. He is currently Chairman of Peremba (Malaysia) Sdn conat H hs en h Cara o Cmays usday Fcl is d Bd “AB) n Fcl Aims Focal and (“FASB”) Bhd Sdn Aims Focal subsidiary, Company's of Chairman the been has He Accountant. rm h Uiest o Qenln, utai i 18. e s Flo o te utain oit o Criid Public Certified of Society Australian the of Fellow a is He 1980. in Australia Queensland, of University the from Degree in Commerce from the University of New Castle, Australia in 1972 and Masters Degree in Financial Management the Chairman of Focal Board of Directors. Tan Sri was appointed to the Board on 18 February 2003. He holds a Bachelor Tan Sri Datuk Mohd Razali bin Abdul Rahman, aged 64, a Malaysian, is a Non-Independent Non-Executive Director and WAN MUSTAPHA BIN WAN ISMAIL DATUK CHE MOKHTAR BIN CHE ALI YEE YOK SEN E. SENG KIW @ YEE OY CHONG TAN SRIDATUK MOHDRAZALI BINABDULRAHMAN Profile of Directors All the directors have no conviction for any offences and they all have no conflict Other of Information interests with the Company. Executive Committee, Audit Committee, Nomination Committee and Budget Committee of the Company. with any Director and/or major shareholder of the Company. He is a shareholder of the Company. He is a member of the four (4) Board Meetings held in the financial year ended 30 September 2011. He does not have any family relationship Malaysia, for over twenty-five (25) years. He also sits on the board of Ge-Shen Corporation Berhad. He has attended all the Malaysian Institute of Taxation. He has been attached to a number of public accounting firms, both overseas and in New Zealand Incorporated, a Chartered Accountant with the Malaysian Institute of Accountants and a Fellow member of member of the Institute of Chartered Accountants of New Zealand, an associate member of the Chartered Secretaries He graduatedwithaBachelorofCommerce Degree from theUniversityofCanterbury, NewZealand,in1985.Heisa Focal on 9 November 1999. He is an Accountant by profession and has been in public practice in Johor Bahru since 1993. Mr. Tee Boon Hin, aged 50, a Malaysian, is an Independent Non-Executive Director and he was appointed as a Director of Executive Committee and a member of Audit Committee and Nomination Committee of the Company. Director and/ormajorshareholder oftheCompany.shareholder Heisa ofthe Company.a Chairmanofthe Heisalso Board Meetings held in the financial year ended 30 September 2011. He does not have any family relationship with any served as served a Deputy Minister of Education of Malaysia for four (4) years from 1986 to 1990. He has attended all four (4) Johor State Assembly member in 1982 and was elected as a Member of Parliament of Malaysia from 1986 to 1995. He solicitor by profession and has been in legal practice in Johor Bahru for more than thirty-eight (38) He years. was also a of Focal on 9 November 1999. He graduated from the law school of University of Singapore and is an advocate and advocate an is and Singapore of University of school law the from graduated He 1999. November 9 on Focal of Mr. Woon See Chin, aged 67, a Malaysian, is an Independent Non-Executive Director and he was appointed as a Director Pang Choo Ing. year ended 30 September 2011. He is a substantial shareholder of the Company. He is the brother of Mr. Phang Piow @ holds directorships in several private limited companies. He has attended all four (4) Board Meetings held in the financial manufacturing and hotel management. He is currently an Executive Chairman of Kimlun Corporation Berhad. He also He Berhad. Corporation Kimlun of Chairman Executive an currently is He management. hotel and manufacturing years experience in various sectors, encompassing property development, property investment, construction, quarrying, to the Board of Focal He has been on a 9 directorNovember 1999. of FASB He has over thirty-eight since (38) 1996. Mr. Pang Tin @ Pang Yon Tin, aged 64, a Malaysian, is a Non-Independent Non-Executive Director and he was appointed Company. Mr. Phang Piow also sits in the Remuneration Committee of the Company. ended 30 September 2011. He is the brother of Mr. Pang Tin @ Pang Yon Tin. He is a substantial shareholder of the of shareholder substantial a YonPangis Mr.@ He TinTin.of Pang brother the is He 2011. September 30 ended directorships in several private limited companies. He has attended all four (4) Board Meetings held in the financial year management. He is currently a Non-Independent Non-Executive Director of Kimlun Corporation Berhad. He also holds xeine n rpry eeomn, rpry netet qarig cntuto, auatrn ad hotel and manufacturing construction, quarrying, investment, property development, property in experience an Executive Director of FAPSB and has been an Executive Director of FASB He has over since forty 1994. (40) years University, USA and a Masters of Business Administration from Greenwich University, Australia. Mr. Phang Piow is also appointed to the Board of Focal on 9 November 1999. He holds a Bachelor of Business Administration fromBusiness Administration Honolulu Bachelor of holds a He the BoardofFocalappointed to 1999. 9 November on Mr. Phang Piow @ Pang Choo Ing, aged 69, a Malaysian, is a Non-Independent Non-Executive Director and he was he and Director Non-Executive Non-Independent a is Malaysian, a 69, aged Ing, Choo Pang @ Piow Mr.Phang TEE BOON HIN WOON SEE CHIN PANG TIN @ PANG YON TIN PHANG PIOW @ PANG CHOO ING Profile of Directors (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 5 6

Chairman's Statement

On behalf of the Board of Directors of Focal Aims Holdings Berhad, I am pleased to present to you the Annual Report and the Financial Statements of the Group and the Company for the financial year ended 30 September 2011.

Focal s m i A 8 Focal Aims Holdings Berhad . Annual Report 2011 disintegration of the Euro Zone. To make the situation There are talks ofsovereign bankruptcy as well as immense pressure the toserve mountain load of debt. situation the world economy isfacing. Greece is under During the financial year under review, this is the nations. harm inflicted, inparticular the European Union (“EU”) more nations have been affected with greater degree of and the situation has not been improved much. Instead different extents ofdamages. Two years have passed shockwave had affected the rest ofthe world with similar tothe great depression of the 1930s. The 2008 that prompted an economic downturn inthe US It was the sub-prime crisis ofthe United States (“US”) in OVERVIEW Chairman's Statement (Cont'd) growth rate of4.6% for 2011. Economic Research (“MIER”) has forecasted alower Under such circumstances, Malaysia Institute of will lead toreduction in orders of all exporting sectors. in the advanced nations asaresult oftheir bad economy the goods from Asia. Basically, the reduction in demand and relevant logistical companies that produce and ship borders will beaffected, so are the manufacturing plants economy isno exception. The trade volume across In aclosely connected world economy of today, the Asian situation back to its feet. financial chaos and nobeacon could befound to lead the bad news to the world economy. Inanutshell, there is worse, Italy, Portugal and Spain are all lining up todrop Chairman's Statement (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 9 10 Chairman's Statement (Cont'd)

With this in mind, the Malaysian Budget 2012 has taken As mentioned in the last annual report, the accessibility measures to buffer the probable economic impact by of Kota Masai has been vastly improved with the financially assisting the lower income households. The completion of the Senai-Desaru Highway (the Desaru continued expansionary budget also serves well to Bridge is completed), 2nd Pasir Gudang Highway protect the nation from external uncertainties. The minor (partially completed), and Eastern Dispersal Link change to the Real Property Gain Tax (“RPGT”) of (“EDL”) (partially completed). The accessibility will be increasing to 10% (from 5%) for disposal within 2 years is further enhanced if the 2nd Permas Jaya Bridge is a comforting sign to the existing as well as potential completed (under construction now). The commuting property investors in Malaysia property market. In all, time between Kota Masai and the city center and other the expansion measures taken by the Government are parts of Johor Bahru has already been tremendously likely to steer the country through the current world reduced with partial completion of the various highways economic turmoil. as mentioned. The travelling time will be further improved if all of them are completed in one to two FINANCIAL HIGHLIGHTS years’ time. In addition, the Desaru Bridge also cuts the commuting For the financial year under review, the Group registered time by more than half for people who travel from a pre-tax loss of RM2.25 million on revenue of RM55.71 Desaru to Johor Bahru. With the Government’s million. This is a distinct improvement compared to pre- intention to develop Desaru into a world class travel tax loss of RM4.49 million achieved in financial year destination, Kota Masai is bound to benefit due to the 2010 even though the revenue is lower than last year’s close proximity to Desaru. On top of that, the recent revenue of RM63.92 million. The loss after tax for the announcement of the Petronas RM60 billion investment financial year under review is RM2.03 million, also a at Penggerang is also within reach of the Desaru Bridge. significant improvement from last year’s loss after tax of The potential effects of these two incoming mega RM3.96 million. The Group’s loss per share stood at developments are auguring well for Kota Masai as it still 0.80 sen and the net assets per share as at 30 has an undeveloped land bank of more than 1,000 acres September 2011 stood at RM1.16. The gearing ratio for future development. has also been reduced from 0.28 times to 0.22 times.

The financial result of 2011 is the third consecutive years KLANG VALLEY of losses for the Group since financial year 2009. However, the losses have been on a reducing trend with During the financial year under review, 6 units of D marked improvement on a yearly basis. There is Villa’s at Phase 2 and 10 units of SD Villa’s at Phase 3 tremendous improvement for the pre- and after- tax loss of Saujana 0-Lot have been sold. The development is from financial year 2009 to 2011, from pre-tax loss of now reaching its final phase of development with 37 RM7.89 million to RM2.25 million and after-tax loss of units of SD Villa and 4 units of D Villa open for sales. RM8.33 million to RM2.03 million. These improvements in losses are mainly attributed by improved sentiments The convenient location at Glenmarie/Temasya area and market conditions especially for high end properties makes Saujana 0-Lot easily accessible to all the major in the Klang Valley and the development in Iskandar highways and roads. With the opening of a new road to Malaysia (“IM”). Tropicana, Kota Damansara, Bandar Utama via Ara Damansara, the accessibility to Saujana 0-Lot gets even better.

OPERATIONAL REVIEW The whole development of Saujana 0-Lot is based on the ISKANDAR MALAYSIA concept of 0-Lot. This concept allows the house owners to enjoy bigger garden with better privacy. During the financial year under review, the Group has Judging from the sales, it is very well received by the sold a total of 131 units of various types of properties at general public. The 0-Lot concept lets the purchaser Kota Masai. The Group managed to sell 80 units of owns a bungalow unit at the price of a semi-detached single storey terrace houses, 21 units of double storey house. A contemporary three storey house with a terrace houses, 5 units of double storey semi-detached spacious garden and a sky balcony with private green are houses, and 25 units of double storey shop office. The just a few of many good features for our existing home

Focal Aims Holdings Berhad . Annual Report 2011 Focal higher margin property such as shop office continues to owners. make up about 20% of the total sales.

Focal A i m s Chairman's Statement (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 11

from Asian/Asean countries due toitsstrategic location, Iskandar Malaysia is poised tolure foreign investors do justthat. end, Iskandar Malaysia could bethe perfect platform to and negative impact from theUSand EU.Towards this Intra-Asian/Asean inaneffort to lessen thedependence more domestic demand notonly within Malaysia but also Iskandar Malaysia (“IM”). Itisalso important to explore continuation ofseveral landmark projects especially is expected tokeep pump-priming the economy with the and keep theunemployment rate low. TheGovernment group. The keyistokeep the policy expansionary going the Malaysian Budget 2012to support thelower income The Government has takenmeasures asannounced in on thestreet atthe moment. albeit lower, andthis iswhatmatters mosttothe people uncertainties. The goodnews isthat there isstill growth Research (“MIER”) for2011 because ofthese external lower at4.6% byMalaysia Institute ofEconomic economic growth rate ofMalaysia is forecasted tobe exception to theonslaught ofthiseconomic turmoil. The the globalization of worldeconomy. Malaysia isno though notasseverely hit, isalsobeing affected dueto of theworld notto beaffected. The Asiaeconomy, a severe coldlike this, it is indeed atall order forthe rest With the leading nations ofthe world economy catching sorrows andfrustrations. Street”, is justone ofmanymanifestations ofpeople globe. Themost notable movement, “Occupy Wall the poor havecaused various demonstrations around the The high unemployment rates andlack ofsocial net for surely taking atoll ontheir political and social stability. taken by thecountries thatare badlyhit are slowly but spread from theUSto theEU.The austerity measures The infectious disease ofeconomic slump hasbeen advanced nations, is surely inachaotic stage right now. The world economy, inparticular theeconomy ofthe PROSPECT trust and confidence intheGroup. would like tooffer mygreatest appreciation for your authorities fortheir support. To ourshareholders, I customers, various government agencies andlocal appreciation toour bankers, business associates, guidance. Ialso like toputonrecord mysincere gratitude tomy fellow directors fortheir dedication and valuable contribution tothe Group. Iwish toexpress my appreciation tothe management andstaff for their On behalf ofthe Board ofDirectors, Iextend my ACKNOWLEDGEMENT challenging yearahead. cautious andit isonlyprudent toexpect another happen overnight. Hence it isnever wrong tobe of theworld economy nowadays, alotof things could Nevertheless, going forward withthe great uncertainties capitalize thepotential growth ofthis special corridor. the Node DofIskandar Malaysia andwould beable to The Group’s flagship project, Kota Masai or better known asIskandar Malaysia, toahigher level. expected topropel the property market inJohor Bahru, (“MRT”) into Johor Bahruby 2018is another catalyst industry. Theproposed extension ofMass Rapid Transit Singapore’s various needs including thehousing not only foreign investments but alsoacts tocompliment and attractive incentives, Iskandar Malaysia canattract balancing act forproperty prices. Withvast land area not enough ofland area forthe nation todothe expensive property prices intheworld andyet there is disparity inprices. Singapore ishaving oneofthe most simply duetotheir close proximity aswell asstark Malaysia theneeds canalso ofthe serve Singaporean international trading hub. Further tothat, Iskandar and also through Singapore duetoits nature of can beachieved through its ownmarketing campaign loads of incentives and natural disaster free. This goal Chairman's Statement (Cont'd) , issituated at Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 13 14 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Financial Highlights Gearing (times) Total borrowings (RM'000) Return oncapitalemployed(%) Current ratio Pre-tax (loss)/profit margin (%) Net (loss)/earningspershare (sen) Company(RM'000) toequityholdersofthe (Loss)/profit fortheyear attributable (Loss)/profit before taxation(RM'000) Revenue (RM'000) Net Assetspershare (sen) Net Assets(RM'000) Paid-up capital(RM'000) 29 253,317 55,714 64,468 (2,247) (2,032) 201 4,704 (4.03) (0.80) 2.93 0.22 (0.8) 11 1 6 5,1 5,1 5,1 253,317 253,317 253,317 253,317 9,3 0,9 0,2 310,195 309,029 300,694 296,736 3209,8 930120,796 99,390 94,584 83,240 3903,5 14352,965 81,413 30,957 63,920 2010 448 788 7 3,619 870 (7,888) (4,498) 398 834 3 9,961 333 (8,334) (3,958) 70)(55 .76.83 1.07 (25.5) (7.04) 15)(.9 .33.93 0.13 (3.29) (1.56) 15 26 . 1.2 0.3 (2.6) (1.5) .803 .20.39 0.32 0.31 0.28 .930 .12.82 2.51 3.03 2.59 1 1 2 122 122 119 117 0920 2007 2008 2009

292,000 294,000 296,000 298,000 300,000 302,000 304,000 306,000 308,000 310,000 312,000 RM'000 RM'000 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 0 2007 2007 310,195 52,965 NET ASSETS 2008 2008 REVENUE 309,029 81,413 092010 2009 2009 Year Year 300,694 30,957 2010 296,736300,694 63,920 2011 2011 294,704 55,714 (10,000) RM'000 (8,000) (6,000) (4,000) (2,000) 10,000 2,000 4,000 6,000 8,000 SEN PER 0 SHARE (4.00) (2.00) 2.00 4.00 6.00 0 2007 3,619 TAXATIONBEFORE/AFTER 072008 2007

(LOSS)/EARNINGS 9,961 3.93 Financial Highlights (Cont'd) (LOSS)/PROFIT 2008 PER SHARE (Loss)/Profit aftertaxation (Loss)/Profit before taxation 870 0.13 333 092010 2009 Year Year 092010 2009 3.29 (7,888) (8,334) 1.56

2011 (4,498) 0.80 (3,958) 2011 (2,247) (2,032) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 15 16 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Group Corporate Structure Investment holdings) (Principal activities: (17777-V) BERHAD HOLDINGS FOCAL AIMS Focal s m i A 100% 100% (Principal activities: Property investment and development) FOCAL AIMS PROPERTIES SDN BHD (Principal activities: Property development) (Principal activities: Investment holdings) FOCAL AIMS LAND SDN BHD FOCAL AIMS SDN BHD

100% (316524-U) (471101-H) (319435-X) FOCAL AIMS RESORT (M) SDN BHD

FOCAL AIMS DEVELOPMENT SDN BHD 100% 100% (Principal activities: Dormant)

FOCAL AIMS REALTY SDN BHD 100% (Principal activities: Dormant) (Principal activities: Dormant) (473536-V) (417670-H)

(203016-P)

themselves elect a Chairman who must be independent director to chair the meeting. In the absence of the Chairman of the Audit Committee, the other members of the Audit Committee shall amongst shall Committee Audit the of members other the Committee, Audit the of Chairman the of absence the In director. The members of the Audit Committee shall elect a Chairman from amongst their number who shall be an independent be an who shall fromtheir number a Chairman amongst shall elect Audit Committee of the The members Chairman number of the new members as may be required to fill the vacancy. the composition criteria as stated above in Clause 2, the Board shall within three (3) months of the event appoint such If a member of the Audit Committee resigns, dies, or for any reason ceases to be a member resulting in non-compliance to Retirement and resignation accordance with their terms of reference. least once every three (3) years to determine whether such Audit Committee and members have carried out their duties in The term of office and performance of the Audit Committee and each of its members shall be reviewed by the Board at No alternate director of the Board shall be appointed as a member of the Audit Committee. c fulfils such other requirements as prescribed by Bursa Securities. (c) b if he is not a member of MIA, he (b) must have at least three (3) years of working experience and: a a member of the Malaysian Institute of Accountant (“MIA”);(a) or be:- All members of the Audit Committee shall be financially literate and at least one (1) member of the Audit Committee must Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) and any practice notes issued thereto. In this respect, the Board adopts the definition of “independent director” as defined under the Main Market Listing Market Main the under defined as director” “independent of definition the adopts Board the respect, this In non-executive directors. The majority of the Audit Committee members shall be independent directors. The Board shall appoint the Audit Committee members from amongst themselves, comprising no fewer than three(3) no fewer themselves, comprising from amongst Committee members the Audit The Boardshallappoint Composition of members TERMS OF REFERENCE OF AUDIT COMMITTEE c Tee BoonHin (c) b Woon SeeChin (b) a au h oha i h l needn o-xctv ietr Attended all4meetings IndependentNon-ExecutiveDirector DatukCheMokhtarbinAli (a) The present members of the Audit Committee of the Company are:- Members The Audit Committee has been appointed for a term of three (3) years expiring on 8 November 2012. the 29 November 2010, 25 February 2011, 27 May 2011 and 25 August 2011. During the year ended 30 September 2011, the Committee held a total of four (4) meetings and the meetings were held on The members of the Audit Committee currently comprised of three (3) independent non-executive directors. Size and Composition i he must be a member of one of the associations of the accountants specified in Part II of the First Schedule of ii. .he must have passed the examinations specified in Part I of the First Schedule of the i. Accountants Act 1967; or (Chairman) Name the Accountants Act 1967; or needn o-xctv ietr Attended all4meetings Independent Non-ExecutiveDirector needn o-xctv ietr Attended all4meetings Independent Non-ExecutiveDirector Designation Audit Committee Report Attendance ofmeetings Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 17 18 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 b aefl n niie/netitdacs oalifrainaddcmnsrsucswihaerqie o to required are which documents/resources and information all to access unlimited/unrestricted and full have (b) a have explicit authority to investigate any matter within its terms of reference, the (a) resources to do so, and full access Company, The Audit Committee shall, in accordance with a procedure to be determined by the Board and at the expense of the of expense the at and Board the by determined be procedureto a with accordance in shall, Committee Audit The Authority . . . . addition, the Audit Committee shall:- responsibilities relating to accounting and reporting practices of the holding company and each of its subsidiaries. In subsidiaries. its of each and company holding the of practices reporting and accounting to relating responsibilities h picpl betvs f h Adt omte ae o sit h Bad n icagn is tttr dte and duties statutory its discharging in Board the assist to are Committee Audit the of objectives principal The Objectives directors. The quorum for the Audit Committee meeting shall be the majority of members present whom must be independent be must whom present members of majority the be shall meeting Committee Audit the for quorum The Quorum held or by the Chairman of the next succeeding meeting. minutes of the Audit Committee meeting shall be signed by the Chairman of the meeting at which the proceedings were also to the other members of the Board. The Audit Committee Chairman shall report on each meeting to the Board. The Minutes of each meeting shall be kept at the registered office and distributed to each member of the Minutes Audit Committee and and in the case of equality of votes, the Chairman of the Audit Committee shall have a second or casting vote. Questions arising at any meeting of the Audit Committee shall be decided by a majority of votes of the members present, twice a year and whenever necessary. However, the Audit Committee shall meet with the external auditors without executive Board members present at least meetings. Other Board members and employees may attend meetings upon the invitation of the Audit Committee. Audit the of invitation the upon meetings attend may employees and members Board Other meetings. The Finance Director, the head of internal audit and a representative of the external auditors should normally attend normally should auditors external the of representative a and audit internal of head Director,Financethe The informed of matters affecting the Company. the Chief Executive Officer, the Finance Director, the head of internal audit and the external auditors in order to be kept The Chairman of the Audit Committee shall engage on a continuous basis with senior management, such as waives the such Chairman, requirement. Notice of Audit Committee meetings shall be given to all the Audit Committee members unless the Audit Committee Audit the unless members Committee Audit the all to given be shall meetings Committee Audit of Notice shareholders. Committee to consider any matter the external auditor believes should be brought to the attention of the directors or directors the of attention the to brought be should believes auditor external the matter any consider to Committee Upon the request of the external auditor, the Chairman of the Audit Committee shall convene a meeting of the Audit the of meeting a convene shall Committee Audit the of auditor,Chairman external the the of request the Upon Chairman’s discretion. discharging its duties and responsibilities. In addition, the Chairman may call for additional meetings at any time at the The Audit Committee shall meet regularly, with due notice of issues to be discussed, and shall record its conclusions in Meetings circulated to all members of the Board. The Company Secretary shall be the Secretary of the Audit Committee and as a reporting procedure, the Minutes shall be Secretary Secretary Audit Committee Report (Cont'd) provide assurance that the financial information presented by management is relevant, reliable and timely; evaluate the quality of the audits performed by the internal and external auditors; Group. efr t uisa ela oteitra n xenladtr n eirmngmn fteCmayad and Company the of management senior and auditors external and internal the to as well as duties its perform to information. All employees shall be directed to co-operate as requested by members of the Audit Committee. determine the quality, adequacy and effectiveness of the Group's control environment. oversee compliance with laws and regulations and observance of a proper code of conduct; and o oavs h or fDrcosadmk eomnain nrseto ikmngmn st h olwn following the to as management risk of respect in recommendations make and Directors of Board Tothe advise (o) n To consider other topics as defined by the (n) Board; m The assistance given by the employees of (m) the listed issuer to the external auditors. l To determine the remit of the internal audit function; (l) k To verify the allocation of employees' share option scheme ("ESOS") in compliance with the criteria as stipulated in (k) j To consider the major findings of internal investigations and management's response;(j) i To report its findings on the financial and management performance, and (i) other material matters to the Board; (h) To consider any related party transactions and conflict of interest situation that may arise within the Company or Company or Towithin the arise that may interest situation of and conflict transactions related party any consider (h) g To do the following, in relation to the (g) internal audit function:- f To review the external auditors' management letter and management’s response; (f) e To discuss problems and reservations arising from the interim and final (e) audits, and any matter the auditors may wish d To review the quarterly and year-end financial (d) statements of the Board, focusing particularly on – c To review with the external auditors his evaluation (c) of the system of internal controls and his audit report; b To discuss with the external auditors before the audit commences, the nature (b) and scope of the audit, and ensure co- a To consider the appointment of the external auditors, (a) the audit fee and any question of resignation or dismissal; The duties and responsibilities of the Audit Committee are as follows:- Duties and Responsibilities f ovn meig wt te xenl uios wtot h atnac o te xctv mme o te ui Audit the of member executive the of attendance the without auditors, external the with meetings convene (f) e hr h ui omte so h iwta h atrrpre yi oteBadhsntbe aifcoiy satisfactorily been not has Board the to it by reported matter the that view the of is Committee Audit the where (e) d have direct communication channels with the external auditors and person(s) carrying out (d) the internal audit function c ban needn poesoa o ohr die n t ivt oties ih eeat xeine o ted i if attend, to experience relevant with outsiders invite to and advice other or professional independent obtain (c) matters: the by-laws of ESOS of the Company, if any; Group including any transaction, procedure or course of conduct that raises questions of management integrity; . . . . . to discuss (in the absence of management, where necessary); . . . . ordination where more than one audit firm is involved; Committee, whenever deemed necessary. such matter to Bursa Securities. resolved resulting in a breach of the Main Market Listing Requirements, the Audit Committee shall promptly report or activity (if any). necessary. appropriate actions are taken on the recommendations of the internal audit function; review the internal audit programme and results of the internal audit process and, where necessary, ensure that necessary necessary authority to carry out its work; review the adequacy of the scope, functions and resources of the internal audit function, and that it has the the has it that and function, audit internal the resourcesand of functions scope, the of adequacy reviewthe compliance with accounting standards and other legal requirements. the going concern assumption; and significant adjustments arising from the audit; any change in accounting policies and practices; opportunity to submit his reasons for resigning. aecgiac frsgain fitra ui tf ebr n rvd h einn tf ebra an member staff resigning the provide and members staff audit internal of resignations of cognizance take approve any appointment or termination of senior staff members of the internal audit function; and review any appraisal or assessment of the performance of members of the internal audit function; Audit Committee Report (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 19 20 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 .Other activities 5. .Risk Management 4. .Matters relating to Internal Audit: 3. .Matters relating to External Audit: 2. .Review of financial statements: 1. duties. During the year under review, the Committee carried out the following activities in the discharge of its functions and functions its of discharge the in activities following the out carried Committee review,the under year the During Activities of the Committee during the year p To consider and examine such other matters as (p) the Audit Committee considers appropriate. Audit Committee Report (Cont'd) a Reviewed the disclosure of any related party transactions that arose(a) within the Group and reported the relevant b Provided a consolidated risk and assurance report to the Board for (b) support to the statement relating to internal a Reviewed the risk register and enterprise risk scorecard as prepared(a) by the management to ensure that all risks c sesd h promne f h itra adtr ad ae eomnain t te or o ter their on Board the to recommendations made and auditors internal the of performance the Assessed (c) (b) Reviewed the internal audit report in respect of the audit recommendation, management response as well as Reviewed the internal audit report in respect of the audit recommendation, management response as well as (b) a Reviewed the annual audit plan to ensure adequate scope and coverage on (a) the activities of the Group based on d vlae te efrac o etra adtr ad ae eomnain t te or o ter their on Board the to recommendations made and auditors external of performance the Evaluated (d) c eiwd h etra adtr' vlain f ytm f nenl otos mngmn lte o itra internal on letter management controls, internal of system of evaluation auditors' external the Reviewed (c) (b) Reviewed the results of the audit, audit report and findings on the financial and management performance of Reviewed the results of the audit, audit report and findings on the financial and management performance of (b) ojcie ad prah ky ui aes n rlvn acutn sadrs sud y AB n ohr other and MASB by issued standards accounting relevant and areas audit key approach, and objectives (a) Reviewed the external auditors' audit planning memorandum for the Company and Group covering the audit audit and Groupcoveringthe the Company memorandum for audit planning external auditors' Reviewedthe (a) (b) Reviewed the financial statements and ensure that the financial reporting and disclosure requirements of the Reviewed the financial statements and ensure that the financial reporting and disclosure requirements of the (b) a Reviewed the quarterly report and annual reports of the Company and Group prior to submission to the Board(a) . . . . related party transactions. control in the Company’s annual report. are well managed and reported to the Board. appointment, scope of work and fees. internal audit report. from the internal audit report and made recommendations to the Board for consideration and approval of the from the internal audit report and made recommendations to the Board for consideration and approval of the actions taken to improve the system of internal control and procedures. Report to the Board on major findings the identified and assessed key risk areas. re-appointment, scope of work and audit fee. control in the Company's annual report. rvd osldtdrs n suac eott h or ospottesaeetrltn oitra internal to relating statement the support to Board the to report assurance and risk consolidated a Provide Review the enterprise risk scorecard and determine the risks to be escalated to the Board once a year; and control recommendations and management’s response (if any). Review the Risk Register and ensure that all risks are well managed; the organization reflects the risk consciousness of the Board; the Company and Group and reported to the Board of Directors. To monitor risk management processes are integrated into all core business processes and that the culture of relevant technical pronouncement. relevant authorities are duly complied with. of Directors for consideration and approval. and Board Meetings for approval. implementation of the recommendations. Follow-up actions on the implementations were tabled at the Audit Committee h Itra Adt eot icroae te idns rcmedtos o ipoeet, aaeet cin and action management improvements, for recommendations findings, the incorporated reports Audit Internal The .Follow-up and update of previous cycle of audit on project management, sales and marketing, financial management 7. .Ohrts fcnrl uha oto vrrcit,pyet,poueetadrve fbn eoclain reconciliation bank of review and procurement payments, receipts, over control as such controls of test Other 6. .Audit work on legal with regard to reporting on corporate announcement. 5. .Audit work on safety, health and environment focusing on compliance with safety 4. requirement. .Audit work on project management focusing on 3. .Audit work on sales and marketing focusing on 2. .Audit work on strategic management focusing on 1. The areas of audit conducted by the Internal Auditors during the year were as follows: add value to the Group’s operations. regulations and assessment of risk and adequacy of risk management as to provide assurance to the stakeholders and h Gop s prtn stsatrl ad fetvl b cmlig ih h plce ad rcdrs wt lw and law with procedures, and policies the with complying by effectively and satisfactorily operating is Group the The principal responsibilities of the Internal Audit function is to provide assurance that the system of internal controls of execution. The internal audit plan is being reviewed and approved by the Committee at the beginning of the financial year prior to the standards. The Internal Auditors are using a risk-based methodology approach based on the global best practices and industry industry and practices best global the on based approach methodology risk-based a using are Auditors Internal The . . . . be expiring on 30 September 2012. The Internal Auditors' scope of work is based on 4-phase approach as follows: The Company has appointed KPMG Business Advisory Sdn. Bhd. as the Internal Auditors for two (2) years term and shall Internal Audit Functions and information technology. statements, nature of reconciling items and timeliness of the resolution...... Reporting Execution Planning Engagement project management changes in material prices. adequacy of township maintenance; and cost overrun; quality of materials; structural failure; timeliness of project completion; effectiveness of sales presentation response to customer complaints; and delay in product launches; effectiveness of sales and marketing strategies; response on sales launches; intense competition; land bank acquisition strategy. effectiveness of land development and product design planning; and Audit Committee Report (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 21 22 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 meeting attendance is as follows: necessary.Four recordSeptemberBoard30 2011.Thetheir financialendedmeetings (4) of year were heldduring the The Board meets at least four times a year, with additional meetings for particular matters convened as and when and as convened matters particular for meetings additional with year, a times four least at meets Board The Mr. Woon See Chin is the senior independent non-executive director of the Board to whom concerns maybe conveyed. representation. The Board is satisfied that investment of the minority shareholders in the Company is fairly reflected through Board through reflected fairly is Company the in shareholders minority the of investment that satisfied is Board The and the Group. independent and that the advice and judgment made to issues and decisions are to the best interest of the stakeholders making. The independent non-executive directors play an important role to ensure the views provided are professional and responsibilities of managing the operation and performance of the Group, implementation policies and executive decision- responsible for ensuring the effectiveness of the Board and conduct while the Group Managing Director has the overall The division of responsibilities is clearly defined between the Chairman and Group Managing Director. The Chairman is pages 4 to 5. experience and background are vital for the strategic direction of the Group. The profiles of the Directors are set out on range of experience and expertise drawn from the area of legal, business, accounting and financial. Their expertise, Their financial. and accounting business, legal, of area the from drawn expertise and experience of range board of directors of a listed issuer, whichever is higher, are independent directors). The Directors collectively have wide Requirements of Bursa Securities (Paragraph 15.02: A listed issuer must ensure that at least 2 directors or 1/3rd of the xctv drcos r idpnet ietr, hc cmle wt prgah 50 o te an akt Listing Market Main the of 15.02 paragraph with complied which directors, independent are directors executive h cret or cmrss w () xctv drcos n svn 7 nneeuie ietr. he o te non- the of Three directors. non-executive (7) seven and directors executive (2) two comprises Board current The establishing the objectives and achievement of the objectives or goals. The Board’s principal responsibilities for corporate governance are by setting out the strategic direction of the Group, the directionstrategicof the out setting by aregovernanceresponsibilitiesBoard’scorporateprincipal The for The Board of Directors good corporate governance and compliance of the best practices set out in the Malaysia Code of Corporate Governance. The Board of Directors is pleased to report a statement to the shareholders on how the Group has applied the principles of the interests of the shareholders. throughout the Group with the objective of strengthening the Groups growth, corporate accountability and safeguarding Statement of Corporate Governance The Board of Directors of Focal is committed to ensure that the highest standard of Corporate Governance is practiced Tan SriDatukMohd.Razalibin agTn@Pn o i Non-IndependentNon-Executive Director Tee Boon Hin Woon SeeChin Non-Independent Non-ExecutiveDirector Pang Tin @Pang Yon Tin Non-IndependentNon-ExecutiveDirector Phang Piow @Pang ChooIng Independent Non-ExecutiveDirector Wan MustaphabinWan Ismail Datuk CheMokhtarbinAli E. SengKiw@Yee OyChong Abdul Rahman Yee Yok Sen Directors Directors Independent Non-ExecutiveDirector Independent Non-ExecutiveDirector Group ManagingDirector Group ExecutiveDirector Chairman Attended /Held(duringthe Number ofBoard Meetings Directors' tenure forthe current financialyear) 2/4 3/4 4 / 4 / 4 / 4 / 4 / 4 / 4 / .Executive Committee 2. .Audit Committee 1. has approved the terms of reference of each of the Committee. The Board has also established the following Committees to assist the Board in execution of its responsibilities. The Board Directors may seek independent professional advice as and when necessary in discharging their responsibilities. All the Directors have direct access to the Senior Management and the services of the Company Secretary. In addition, the The Executive Directors lead the presentation and provides explanation on the papers. raised at the meetings as well as discharge their duties appropriately. sufficient time toread theBoard papers before theBoard Meetings andenable allDirectors todiscuss the issues tobe with the agenda are circulated to all the Directors prior to Board Meetings. This is to ensure that the Directors are given All the Directors are notified of the Board meetings within stipulated time prior to the meetings date. Board papers together Supply of Information Composition of Executive Committee: contract to be awarded. During the financial year ended 30 September 2011 two (2) meetings were held. etiigt h wr fcnrcsweecranatoiylmthsbe e o h omte oapoete approvetheCommittee to the for set beencontracts wherecertainauthorityhasawardlimit of the pertaining to aiu atr rapcsta h or adts h xsigisedatwt yteEeuieCmitei variousBoardaspectsmattersthethatmandates.or Executive existingthe The Committeeissueby dealt with is The principal objective of the Executive Committee is to assist the Board in discharging its responsibilities in respect of Committee Report on pages 17 to 21. h dtis f opsto, em o rfrne n atvte o te ui Cmite r st u i te ui Audit the in out set are Committee Audit the of activities and reference of terms composition, of details The reference. The Audit Committee meets with the external auditors twice a year without the management presence. h ui omte et eidclyt ar u t ucin n uisa nacrac ihtertrso accordancein of termsfunctionstheirdutiesas withitsandCommittee Audit out Theperiodically meets carry to implementation of the risk management structure. effectiveness of the internal control system and provide assurance concerning the Group’s risk profile and assist in the epniiiisprann otecmlac ihtelwadrgltos conigsadrsadrve fte responsibilitiesregulations,and lawcompliance pertainingthetheaccountingwith to standards thereview andof h Adt omte’ picpl betvs s o sit h Bad n icagn is tttr dte ad and duties statutory its discharging in Board the assist to is objectives principal Committee’s Audit The (Independent Non-Executive Director) Tee BoonHin (Independent Non-Executive Director) Datuk CheMokhtarbinAli (Group ManagingDirector) E. SengKiw@Yee OyChong (Independent Non-Executive Director) Members Woon SeeChin Statement of Corporate Governance (Cont'd) Designation Chairman Member Member Member No. ofmeetingsattended 2 2 1 2 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 23 24 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 .Corporate Planning Committee 5. .Nomination Committee 4. .Remuneration Committee 3. Statement of Corporate Governance (Cont'd) (Group Executive Director) Yee Yok Sen (Non-Independent Non-Executive Director) Phang Piow @ Pang Choo Ing (Group Managing Director) E. Seng Kiw @ Yee Oy Chong (Non-Independent Non-Executive Director) Wan Mustapha bin Wan Ismail The composition of the Committee are as follows: activities and seek new opportunities and proposals. The objective of the Corporate Planning Committee is to assist the Board in their responsibilities to expand business (Independent Non-Executive Director) Tee Boon Hin (Independent Non-Executive Director) Woon See Chin (Non-Independent Non-Executive Director) Wan Mustapha bin Wan Ismail The members of the Nomination Committee are as follows: own respective skills at Board Meetings. professional skills in all fields. All Directors projected good attendance and good participation / contribution with their satisfactory and the composition of the Board members is satisfactory comprising Directors of good caliber and with independent non-executive directors. The Committee concurred that the performance of all the Directors had been independent non-executive directors. The Committee concurred that the performance of all the Directors had been The committee has reviewed and assessed the Board as a whole and contribution of each individual director including The Nomination Committee meeting was held on the 25 November 2011 and all the members attended the meeting. and other qualities. of Directors as well as assessing the Directors of the Company on an on-going basis as to their skills and experience The principal objectives of the Nomination Committee is to assist the Board in nominating new nominees to the Board (Non-Executive Director) Phang Piow @ Pang Choo Ing (Independent Non-Executive Director) Datuk Che Mokhtar bin Che Ali (Non-Independent Non-Executive Director) Tan Sri Datuk Mohd. Razali bin Abdul Rahman The members of the Remuneration Committee are as follows: meeting. h eueainCmitemeigwshl nte2 oebr21 n l h ebr teddte the attended members the all and 2011 November 25 the on held was meeting CommitteeRemuneration The makes the decisions on the level of remuneration packages after considering the recommendations of the Committee. sesn h eueainpcae fteeeuiedrcoso h opn n ru.Hwvr h or Group.However,andCompany executiveremunerationthedirectorsBoard assessing thethe of the packages of h eueainCmitespicplojciei oass h or fDrcosi hi epniiiisi responsibilitiesin their in Directors of Board the assist to is objectiveprincipal Committee’sRemuneration The Chairman Chairman Chairman .Budget Committee 6. .Aggregate remuneration of Directors categorized into appropriate components: 1. for the financial year ended 30 September 2011 are as following: The details of the Directors’ remuneration of the Company and Group comprising remuneration received or receivable in the course of their duties as Directors. experience and level of responsibilities undertaken by them. Company reimburses expenses incurred by the directors hrhlesa h nulGnrlMeig h ee frmnrto o o-xctv ietr elcste the reflectsdirectorsnon-executive forremuneration of level The Meeting. General Annual the at shareholders h nulfe aal oteNnEeuieDrcosa eomne yteBadaet eapoe yte Theannual feespayable to theNon-Executive Directors recommended as theBoard by areapproved to be the by available by the Group. remuneration of the Executive Directors comprises salaries, allowance, bonuses and other customary benefits made rm atcpto i te icsindcso-aig n epc o ter w rmnrto pcae. h The packages. remuneration own their of respect in discussion/decision-making the in participation from eueainpcae o eomnaint h or o prvl h xctv ietr bti hmevs remuneration packages for recommendation tothe Board forapproval. The executive directors abstain themselves oprt ad niiul efrac. urnl te eueain omte dtrie te ietrs director’s the determines Committee Remuneration the Currently performance. individual and corporate u h opn ucsfly h eueainpcae fteeeuiedrcosaesrcue oln ote the to successfully.companylinkexecutive directorsstructuredthe are to theremuneration run The of packages The objective of the Company is to ensure the level of remuneration is sufficient to attract and retain the directors to Directors’ Remuneration period of not exceeding three years and shall be subject to retirement by rotation. and shall be eligible for re-election at the Annual General Meeting. The Group Managing Director is appointed for a Articles of Association, at least one-third of the Directors shall retire from office and at least once in every three years nacrac ihteMi aktLsigRqieet fBraMlyi euiisBra “MB)ad and (“BMSB”)Berhad SecuritiesMalaysia Bursa of RequirementsListing Market Main the with accordance In Appointments to the Board and Re-election of the Directors (Independent Non-Executive Director) Tee Boon Hin (Group Executive Director) Yee Yok Sen (Non-Independent Non-Executive Director) Wan Mustapha bin Wan Ismail The members of the Budget Committee are as follows: budget and business plan of the Group. h betv fteBde omte st sitteBadi hi epniiiist eiwadaayete the analyse and reviewresponsibilities theirto in Board the assist to is CommitteeBudget the of objective The Fees Total Others Bonus Allowance Salaries Category Statement of Corporate Governance (Cont'd) Executive Directors (RM'000) 1,589 286 276 967 60 - Non-Executive Chairman Directors (RM'000) 596 255 240* 53* 48* - 1 1 1 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 25 26 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 from the Board. the Notice of Annual General Meeting. There isno time limitation for shareholders to raise questions and tosolicit reply At each meeting, shareholders are able to participate in the question and answer session in respect of the matters listed in the Notice of Annual General Meeting will be accompanied by an explanation of the proposed resolution. transacted at the Annual General Meeting, is also published in a major local newspaper. Item of special business included in (21) days prior to the date of the meeting. The Notice of Annual General Meeting, which sets-out the business to be to business thesets-out whichMeeting, General Annual of Notice Themeeting. the of date the to prior days (21) The Annual Report, which contains the Notice of Annual General Meeting, is sent to the shareholders at least twenty-one The Annual General Meeting financial performance of the Group. shareholders and opportunities are given to them to raise questions or seek clarifications pertaining to the operation and uig h ya. n diin te opn hs en sn te nul eea Meig o omnct wt the with communicate to Meeting General Annual the using been has Company the addition, In year. the during basis.accordance In withMarket the Main Listing RequirementsBursaSecurities, of various announcements aremade The GroupThe recognizes informshareholdersneedtheto the majordevelopmentsall of concerning timelyGroupthea on Dialogue with Shareholders (2010: RM48,200.00). During the financial year ended 30 September 2011, non-audit fees paid to the external auditor amounted to RM44,300.00 Non-audit fees and enhance their skills and knowledge which are important for them in carrying out an effective role as directors. The Company will continuously arrange for further trainings for the Directors as part of the Directors obligation to update Market Listing Requirements of the Bursa Securities. All the Directors have attended the Directors’ training for the financial year 2011 in pursuant to paragraph 15.09 of the Main entitled “Securities Commission’s Corporate Governance Blueprint 2011: Towards Excellence in Corporate Governance”. keepthemabreast recenttheof changesMalaysianthe on CorporateCodeof Governance. workshopthetopicTheof During the financial year, the Company has arranged a workshop for the directors which was held on the 10 August 2011 to by the BMSB. All the Directors have attended and successfully completed the Mandatory Accreditation Programme (“MAP”) as specified Directors Training .Number of Directors whose remuneration falls into the following bands:2. Statement of Corporate Governance (Cont'd) * Note: The salary, 1 bonus - and other emoluments received or receivable relates to Non-Executive Directors of the Company but who are Executive Director of its subsidiary company. RM900,001 toRM950,000 RM850,001 toRM900,000 RM800,001 toRM850,000 RM750,001 toRM800,000 RM700,001 toRM750,000 RM650,001 toRM700,000 RM200,001 toRM650,000 RM150,001 toRM200,000 RM50,001 toRM150,000 Below RM50,000 Range ofremuneration Executive 1 1 ------Number ofDirectors Non-Executive 2* 5 ------1 the Group has, from time to time, contributed to humanitarian causes through donations and sponsorships. During the financial year, no activities were conducted by the Group in relation to Corporate Social Responsibility. However, Corporate Social Responsibility year ended 30 September 2011. There were no material contracts involving the Directors and/or major shareholders of the Company during the financial Material Contracts Corporate Governance. of their ability complied with the Best Practices on Corporate Governance as set out in Part 2of the Malaysian Code of The Board is committed to achieve highest level of integrity and ethical standard in all business dealings and has to the best Best Practices on Corporate Governance course of their audit. non-compliance of the financial reporting standards and communication of fraud that have come to their attention inthe The Group’s external auditors report to the Audit Committee on any weaknesses in the Group’s internal control system, any well as the Board of Directors’ meeting upon invitation. external auditors through the Audit Committee. The external auditors attended all the meetings of the Audit Committee as The Board has established a formal and transparent arrangement for maintaining an appropriatethe relationshipwithmaintainingan transparent arrangementfor and formal establisheda has Board The Relationship with external auditors The Statement of Internal Control set out on page 28 to 29 of this Annual Report. ensuring compliance of the law and regulations. The Board also undertakes on-going review of the financial and non-financial risk faced by the Group’s business and businessGroup’s the by faced non-financialrisk and financial the of reviewon-goingundertakes also Board The operations of the Group. h sse o itra cnrl s led i oeain ad hs il rvd te suac o efcie n efficient and effective of assurance the provide will this and operations in already is control internal of system The safeguard the shareholders’ investment and the Group’s assets. The Board acknowledges the overall responsibilities in maintaining a sound and effective system of internal control as to Internal Control The Audit Committee’s report is set out on page 17 to 21 of this Annual Report. recommended to the Board for approval and to release to the public. plcbe iaca Rprig tnad ad h poiin o te opne At 16 i Mlyi bfr being before Malaysia in 1965 Act, Companies the of provisions the and Standards Reporting Financial applicable The Board has also empowered the Audit Committee to ensure that the Group’s financial reports are in compliance with and adequacy. Audit Committee assists the Board by scrutinizing the information disclosed in the financial statements as to its accuracy performance and prospect through the release of the quarterly report and annual financial statements to shareholders. The The Board has undertaken the responsibilities to report a balanced and understandable assessment of the Group’s financial Financial reporting Accountability and Audit Statement of Corporate Governance (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 27 28 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 business and the system of internal controls that is in place to manage these risks. will then present the risk management report to the Audit Committee to highlight the areas of risks that are inherent in the no longer applicable. Risks are also re-rated depending on the risk impact on the Group and Company. The Risk Manager assisted by the Group’s Internal Auditor. New risks are identified and some of the existing risks are removed when they are identify, review andupdate the businessyearly risk on a basis. The review andassessment ofthe business risk are also The Group has an on-going risk management process undertaken by the Risk Manager (Group General Manager) to Manager)General (Group Manager Risk the by undertakenprocessmanagement risk on-going an has Group The control system that is embedded within the Group. managing the Group’s existing and emerging principal business risks and enables the adoption of a risk-basedinternala adoptionof emergingGroup’senablestheexistingmanagingprincipal andtheandbusiness risks The Enterprise Risk Management (“ERM”) framework for the Group allows for a structured and focused approach in approachfocused structuredand a for allows Group the for framework(“ERM”)Management Risk Enterprise The and standards in a timely and effective manner. principal risks of the Group that affect the achievement of the Group’s business objectives within defined risk parameters framework that has been established to enable the systematic identification, assessment, treatment and monitoring of the owtsadn te rcs ad atr dsrbd bv, h Bad s omte twrs h rs management risk the towards committed is Board the above, described matters and process the Notwithstanding Risk Management Board Committees have formal terms of references outlining the committee’s functions and duties. fiduciary responsibility for overseeing the conduct of the Group’s operations through its various Board All Committees. monitoring of the Group’s operations, performance and profitability at its Board meetings. The Board has also delegated its Throughout the financial year, the Board has evaluated and managed the significant risks faced by the Group through the Further, there is a staff handbook, which outlines policies and guidelines in relation to human resource matters. Group. Group.This close-to-operations management style enables timely identification and reporting of any significant matters. manner. The GMD, GED and Management of the Group practise a ‘hands on’ style in managing the businessesthemanaging theof in style on’‘hands Grouppractisemanner. Managementthea and of GEDGMD, The relevant industry experience to run and manage the operations and business of the Group in an effective and efficienteffectiveand an Groupin the businessoperationsof andthemanage and runrelevantexperience industryto The Board relies on the experienced GMD, GED and qualified Group General Manager and General Managers with Managers General and Manager General Groupqualified and GED GMD, experienced the on relies Board The risks are discussed and dealt with. the Board’s expectations to management personnel at management meetings. At these meetings, operational and financial Managing Director ('GMD'), Group Executive Director ('GED') and management. The GMD and GED actively communicate involvement in managing the Group. This is seen fromseenformaltheorganisation is This involvementstructuremanaging Group.in thewhich comprises Groupthe of place an appropriate formal oversight structure that has an appropriate balance of both the Board and Management’sandBoard the bothappropriate appropriateof an balanceoversightan formalstructurehas place that In striving to operate a system of internal control that will drive the Group towards achieving its goals, the Board has set Group.in internal control shouldbe capable managing of principal riskstheGroup of andbe embedded into theoperationsof the The Board acknowledges that good business management practice requires effective risk management. A sound system of Monitoring Mechanisms and Management Style against material misstatement or loss to the Group. of failure to achieve business objectives. As such, the system can only provide reasonable but not absoluteassuranceprovidereasonablenot only butcan system the such,businessachieveobjectives. As failureto of integrity of the Group's internal control system. However, such system is designed to manage rather than eliminate the risk appropriate control environment and framework for the Group, the Board regularly reviews the adequacy, effectiveness and aaeet rcie t esr go croae oenne Big omte i is epniiiy o sals an establish to responsibility its in committed Being governance. corporate good ensure to practices management The Board of Directors ("the Board") recognises the importance of maintaining a sound system of internal control and risk THE BOARD'S RESPONSIBILITY on Internal Control: Guidance for Directors of Public Listed Companies. 2011 in compliance with paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Securities and Statement the Board of Director's Statement on Internal Control ("Statement") as a Group for the financial year ended 30 September maintain a sound system of internal control to safeguard shareholders' investments and the Group's assets. Set out below is The revised Malaysian Code on Corporate Governance (2007) requires the Board of Directors of listed companies to companieslisted Directorsof of Boardrequires theGovernance(2007)Corporate on CodeMalaysianrevised The (Pursuant to paragraph 15.26(b) of the Bursa Listing Requirements) INTRODUCTION Statement of Internal Control Date :25 November 2011 Focal Aims Holdings Berhad The Board ofDirectors control and to keep abreast with the ever-changing business environment. improvement, will put in place appropriate action plans, when necessary to further enhance the Group's system of internal continuously evolve to support the growth and dynamics of the Group. As such, the Board, in striving for continuous for striving in Board, the such, As Group. the of dynamics and growth the support to evolvecontinuously omte twrs anann a on sse o itra cnrl n teeoe eonss ht h sse must system the that recognises therefore and control internal of system sound a maintaining towards committed be responsivein orderablecontinuously to be support itsbusinessobjective. Toachieve this end,theBoard remains The Board recognises that the Group operates in a dynamic business environment in which the internal control system must THE BOARD'S COMMITMENT of this Annual Report. The Board also reviews the minutes of the Audit Committee's meetings. The Report of the AC is set out on pages 17 to 21, by the external auditors at the AC meeting. the course of their statutory audit of the Financial Statements of the Group through management letters, or are articulated In addition, AC also reviews and deliberates on any matters relating to internal control highlighted by the external auditors in affecting the key business processes of the Group identified during the ERM process. system of internal control. The internal audit function adopts arisk-based approach, which focuses onthe principal risks audits conducted, highlighting observations, recommendations and management action plans to improve the Group’s the improve to plans action management recommendationsand observations,highlighting conducted, audits control. The Group hasoutsourced itsinternal audit function, which provides the AC with periodic reports, based onthe The Audit Committee (“AC') performs periodic review and monitoring on the effectiveness of the Group's system of internal ASSURANCE MECHANISMS ...... Other key elements of Group’s internal control system are described as below: - Other Key Elements of the Group's Internal Control System internal control. An independent outsourced Internal Audit Function to assess the adequacy and effectiveness of the Group's system of and Tender Committee consisting of the GED and key management with the purpose of evaluating tenders and contracts; meetings; Financial information and operational reports generated on a timely basis and deliberated at appropriate management Close monitoring of development progress through regular visits to sites by GMD, GED and management; Policies and procedures manual, which acts as a comprehensive guide in carrying out daily tasks; Job description that defines the reporting lines and responsibilities are stipulated in the Company's Operating Manual; Proper procedures governing the authority limits are effectively employed within the Group; resolve business, financial and operational matters; Scheduled meetings at both the management and operational levels, which are attended by the GED to deliberate and the board papers and pertinent issues will be deliberated before arriving at the decision to be adopted by the Group; necessary to maintain full and effective supervision of the Group's activities and operations. The Board will go through ceue or ee etns hr h or et tlatqatryadohrshdlditraswe when intervals scheduled other and quarterly least at meets Board the wheremeetings, level BoardScheduled Board with their recommendations; ntertrso eeec.Te aeatoiyt xmn l atr ihntersoeo okadrpr ote in their terms ofreference. They have authority toexamine allmatters within their scope ofwork andreport tothe pages 17 to 21 for further details). These Committees are delegated with specific responsibilities which are specified Several Board Committees have been set up to assist the Board in performing its oversight functions (please refer to An annual budget is submitted to the Board for approval. Actual performance is reviewed against the budget; (Pursuant to paragraph 15.26(b) of the Bursa Listing Requirements) Statement of Internal Control (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 29 30 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 The total cost incurred in managing the IAF in 2011 was RM45,908.76. All the internal audit activities were outsourced to a service provider, KPMG Business Advisory Sdn. Bhd. . . . . responding to risks within the organization’s governance, operations and information systems regarding the: r cnitn wt te raiains ol. h IF vlae te dqay n efciees f e cnrl in controls key of effectiveness and adequacy the evaluated IAF The goals. organisation’s the with consistent are During the year, the IAF conducted various internal audit engagements in accordance with the risk-based audit plans that internal audit reports on the audit recommendations and management’s responses to these recommendations. The InternaltheAuditorsThe committeereviewsreportsapprovesandaudit internal plan whodirectlyandauditthe the to consultancy activities provided by the function are articulated in the internal audit plan. ups,atoiy n rsosblt o h itra ui fnto IF a ela h ntr o h asrne and assurance the of nature the as well as (IAF) function audit internal the of responsibility and authority purpose, provide assurance on the adequacy and effectiveness of the risk, control and governance framework of the company. The The Internal Audit (“IA”) function is considered an integral part ofthe assurance framework and its primary mission is to Statement on Internal Audit Function Compliance with laws, regulations and contractual obiligations. Safeguarding of assets; and Effectiveness and efficiency of operations; Reliability and integrity of financial and operational information; The Group does not adopt any revaluation policy on the landed properties. STATEMENT OF REVALUATION POLICY the Group and of the Company and to prevent and detect fraud and other irregularities. The Directors have general responsibility for taking such steps as are reasonable open to them to safeguard the assets of . . . . During the preparation of the financial statements, the Directors have ensured that: Group and of the Company for the financial year then ended. as to give a true and fair view of the financial position of the Group and of the Company and the results and cash flows of the The Directors are required by the Companies Act, 1965 (“the Act”) to prepare financial statements for each financial year STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE AUDITED FINANCIAL STATEMENT reasonable judgements and estimates that are prudent and reasonable have been made. appropriate accounting policies are adopted and applied consistently; and comply with the Act; accuracy the financial position of the Group and of the Company which enable them to ensure the financial statements Malaysia; the accounting and other records and the registers required by the Act are properly kept and disclosed with reasonable h fnnil ttmns ae en rprd n codne ih plcbe prvd conig tnad i in standards accounting approved applicable with accordance in prepared been have statements financial the Statement of Directors' Reponsibilities Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 31

Financial Statements

Directors' Report 34 - 36

Statement by Directors 37

Statutory Declaration 38

Independent Auditors' Report 39 - 40

Statements of Comprehensive Income 41

Statements of Financial Position 42

Consolidated Statements of Changes in Equity 43

Company Statements of Changes in Equity 44

Statements of Cash Flow 45 - 46

Notes to the Financial Statements 47 - 71 34 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Tee Boon Hin Woon See Chin Pang Tin @ Pang Yon Tin Phang Piow @ Pang Choo Ing Wan Mustapha bin Wan Ismail Datuk Che Mokhtar bin Che Ali Yee Yok Sen E. Seng Kiw @ Yee Oy Chong Tan Sri Datuk Mohd Razali bin Abdul Rahman The names of the directors of the Company in office since the date of the last report and at the date of this report DIRECTORS are : The directors do not recommend any dividend payment in respect of the current financial year. No dividend has been paid or declared by the Company since the end of the previous financial year. DIVIDENDS were not substantially affected by any item, transaction or event of a material and unusual nature. In the opinion of the Directors, the results of the operations of the Group and of the Company during the financial year financial statements. There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the (Loss)/Profit attributable to equity holders of the Company (Loss)/Profit net of tax RESULTS There have been no significant changes in the nature of the principal activities during the financial year. disclosed in Note 14 to the financial statements. The principalactivityoftheCompanyisinvestmentholding.activitiessubsidiar PRINCIPAL ACTIVITIES the Company for the financial year ended 30 September 2011. The directors have pleasure in presenting their report together with the audited financial statements of the Group and of Directors' Report (2,031,938) (2,031,938) Group RM y companiesare as Company 1,843,880 1,843,880 RM corporations during the financial year. The other director in office at the end of the financial year had no interest in shares in the Company or its related its or Company the in shares in interest no had year financial the of end the at office in director other The Company's subsidiaries to the extent the Company has an interest. E. Seng Kiw @ Yee Oy Chong by virtue of his interest in shares in the Company, is also deemed interested in shares of all the Pang Tin @ Pang Yon Tin Phang Piow @ Pang Choo Ing Wan Mustapha bin Wan Ismail Yee Yok Sen E. Seng Kiw @ Yee Oy Chong Tan Sri Datuk Mohd Razali bin Abdul Rahman Holding in the name of director, spouse or child Subsidiary - Focal Aims Sdn. Bhd. Wan Mustapha bin Wan Ismail Tan Sri Datuk Mohd Razali bin Abdul Rahman Deemed Interest Tee Boon Hin Woon See Chin Pang Tin @ Pang Yon Tin Phang Piow @ Pang Choo Ing Wan Mustapha bin Wan Ismail Yee Yok Sen E. Seng Kiw @ Yee Oy Chong Tan Sri Datuk Mohd Razali bin Abdul Rahman Holding in the name of director, spouse or child Focal Aims Holdings Berhad shares in the Company and its related corporations during the financial year were as follows: According to the register of directors' shareholdings, the interests of directors in office at the end of the financial year in DIRECTORS' INTERESTS he has a substantial financial interest. by the Company or a related corporation with any director or with a firm of which he is a member, or with a company in which of a full-time employee of the Company as shown in Notes 7 and 8 to the financial statements) by reason of a contract made benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed salary Since the end of the previous financial year, no director has received or become entitled to receive any benefits (other than of the Company or any other body corporate. Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the DIRECTORS' BENEFITS 30,144,422 28,162,422 42,787,831 18,596,216 1 October 1 October 7,395,842 9,457,776 375,000 375,000 250,000 125,000 550,000 250,000 53,381 35,000 55,000 21 curdSl 2011 Sold Acquired 2010 3,336 00Aqie od2011 Sold Acquired 2010 Number of Preference Shares of RM1 each Number of Ordinary Shares of RM1 each Directors' Report (Cont'd) ------375,000 - 375,000 - 250,000 - 125,000 - 550,000 - 250,000 - 53,381 - 3,336 - 35,000 - 55,000 - 30,144,422 - 28,162,422 - 7,395,842 - 9,457,776 - 42,787,831 18,596,216 - - 30 September 30 September Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 35 36 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 E. Seng Kiw @ Yee Oy Chong Wan Mustapha bin Wan Ismail Signed on behalf of the Board in accordance with a resolution of the directors dated 25 November 2011. The auditors, Ernst & Young, have expressed their willingness to continue in office. AUDITORS f In the opinion of the directors : (f) e As at the date of this report, there(e) does not exist : d At the date of this report, the directors are not aware of any circumstances (d) not otherwise dealt with in this report or c ttedt fti eot h ietr r o wr faycrusacswihhv rsnwihwudrne thisreport,dateof Atthe directors the areawarecircumstancesnotany of whichhavearisen which would render (c) b At the date of this report, the (b) directors are not aware of any circumstances which would render : a eoe h saeet o cmrhnie noe n saeet o fnnil oiin f h Gop n o te the of and Group the of position financial of statements and income comprehensive of statements the Before (a) OTHER STATUTORY INFORMATION Directors' Report (Cont'd) i)no item, transaction or event of a material and unusual nature has arisen in the interval between (ii) the end of the

i ocnign rohrlaiiyhsbcm nocal ri ieyt eoeefrebewti h eido nocontingent orother liability has become enforceable orislikely tobecome enforceable within the period of (i) i)any contingent liability of the Group or of (ii) the Company which has arisen since the end of the financial year.

i n hreo h seso h ru ro h opn hc a rsnsneteedo h iaca er any charge on the assets of the Group or of the Company which has arisen since the end of the financial year (i) statements misleading. iaca saeet fte ru ad fte opn wih ol rne ay mutsae nte iaca financial the in stated amount any render would which Company the of and Group the of statements financial inappropriate. adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or i)the values attributed to current assets in the (ii) financial statements of the Group and of the Company misleading. i tncsayt rt f n a et rt aeaypoiinfrdutu et nrseto h iaca provisionmakeanyto debts badwriteor anynecessaryoffto it doubtful for respectdebtsin financialthe of (i) i)to ensure that any current assets which were unlikely(ii) to realise their values as shown in the accounting records in i oacranta rprato a entkni eaint h rtn f fbddbsadtemkn f of making the and debts bad of off writing the relationto in taken been had actionproper thatascertain to (i) Company were made out, the directors took reasonable steps : Group and of the Company for the financial year in which this report is made. financial year and the date of this report which is likely to affect substantially the results of the operations of the Company to meet its obligations when they fall due; and wlemnh fe h n ftefnnilya hc ilo a fetteaiiyo h ru ro h the of or Group the of ability the affect may or will which yearfinancial the of end the aftermonths twelve which secures the liabilities of any other person; or statements of the Group and of the Company; and the ordinary course of business had been written down to an amount which they might be expected so to realise.

for doubtful debts was necessary; and provision for doubtful debts and satisfied themselves that there were no known bad debts and that no provision

E. Seng Kiw @ Yee Oy Chong Signed on behalf of the Board in accordance with a resolution of the Directors dated 25 November 2011. Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants. Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to The informationThefinancial theto Note33 in out setstatements havebeenprepared accordancein withGuidancethe on the cash flows of the Group and of the Company for the year then ended. true and fair view of the financial position of the Group and of the Company as at 30 September 2011 and of the results and 71 are drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a Berhad, do hereby state that, in the opinion of the Directors, the accompanying financial statements set out on pages 41 to We, E. Seng Kiw @ Yee Oy Chong and Wan Mustapha bin Wan Ismail, being two of the directors of Focal Aims Holdings Statement of Directors (Pursuant to Section 169(15) ofthe Companies Act, 1965) Wan Mustapha bin Wan Ismail Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 37 38 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Johor Bahru Commissioner for Oaths Mohdzar bin Khalid (J204) Before me, the provisions of the Statutory Declarations Act, 1960. are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of au T'i o 2 Nvme 2011 November 25 on Ta'zim Darul Holdings Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 41 to 71 Ismail at Johor Bahru in the State of Johor of in Johor the State Bahru at Johor Ismail bvnmd a Msah bn Wan bin Mustapha Wan abovenamed (Pursuant to Section 169(16) ofthe Companies Act, 1965) I, Wan Mustapha bin Wan Ismail, being the director primarily responsible for the financial management of FocalAims of management financial the responsibleprimarilydirectorfor the beingIsmail, Wan bin MustaphaWan I, Subscribed and solemnly declared by the the by declared solemnly and Subscribed Statutory Declaration

) ) ) ) Wan Mustapha bin Wan Ismail

c The auditors’ reports on the financial statements of the subsidiaries were not subject(c) to any qualification and did not b eaestsidta h iaca ttmnso h usdaista aebe osldtdwt h iaca financial the withconsolidated been have thatsubsidiaries the of statementsfinancial the that satisfiedare We (b) a In our opinion, the accounting and other records and the (a) registers required by the Act to be kept by the Company and In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following: Report on other legal and regulatory requirements Company as at 30 September 2011 and of their financial performance and cash flows for the year then ended. theCompanies Act, 1965 inMalaysiatrueso astogivea andfair view ofthefinancialposition oftheGroupandof the In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and Opinion We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. financial statements. reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the of presentationoverall the evaluating as well as directors, the by made estimatesaccounting reasonablenessof entity’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the and accountingusedpolicies appropriatenesstheevaluating includes the of also audit control.internalentity’sAn that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenesstheexpressingthe opinionpurposeappropriateon arecircumstances,of of thethatan the for in not but relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial the in disclosures and amounts the about evidence audit obtain proceduresto performinginvolves audit An free from material misstatement. requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are codne ih prvd tnad o adtn i Mlyi. hs sadrs eur ta w cml wt ethical with comply we that require standards Those Malaysia. in auditing on standards approved with accordance Our responsibilityOur expressto is opinionan thesefinancialon statements audit.ourbasedon We conducted auditourin Auditors’ responsibility misstatement, whether due to fraud or error. the directors determine are necessary to enable the preparation of financial statements that are free from material from free are that statements financial of preparation the enable to necessary are determine directors the accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia, and for such internal control as The directors of the Company are responsible for the preparation of financial statements that give a true and fair view in Directors’ responsibility for the financial statements and a summary of significant accounting policies and other explanatory notes, as set out on pages 41 to 71. statements of changes in equity and statements of cash flows of the Group and of the Company for the year then ended, position as at 30 September 2011 of the Group and of the Company, and the statements of comprehensiveincome, of statements the Company,and the of and Group the of 2011 September 30 at as position We have audited the financial statements of Focal Aims Holdings Berhad, which comprise the statements of financialstatements of the comprisewhich Berhad, HoldingsFocal Aims statementsof financial the audited haveWe REPORT ON THE FINANCIAL STATEMENTS include any comment required to be made under Section 174(3) of the Act. those purposes. consolidated financial statements and we have received satisfactory information and explanations required by us for statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the its subsidiaries have been properly kept in accordance with the provisions of the Act. Independent Auditors' Report To the members ofFocal Aims Holdings Berhad (Incorporated inMalaysia) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 39 40 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Date : 25 November 2011 Johor Bahru, Malaysia Chartered Accountants AF 0039 Ernst & Young report. 1965 in Malaysia and for no other purpose. Weassume notresponsibilitydo Malaysiaother1965in purpose.no forand other any personcontentto the forthis of This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the CompaniesBerhad. Act, prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia SecuritiesMalaysiaBursa directiveof the andGuidance MIA the accordancewith respects,materialin all prepared,in ("MIA Guidance") and the directive of Bursa Malaysia Securities Berhad. Inour opinion, the supplementary information is Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Securities Berhad. Thedirectors are responsible for thepreparation ofthe supplementary information inaccordance with The supplementary information set out in Note 33 on page 71 is disclosed to meet the requirement of Bursa MalaysiaBursa requirement of the meet to disclosedis 71 page on 33 Note in out informationsetsupplementary The Other matters Independent Auditors' Report (Cont'd) Chartered Accountant 1821/12/12 (J) Wun Mow Sang - Diluted (sen) - Basic (sen) to equity holders of the Company : Loss per share attributable Total comprehensive (loss)/income (Loss)/Profit attributable to: (Loss)/Profit net of tax, representing total Income tax benefit (Loss)/Profit before tax Other items of expense Other items of income Gross profit Cost of sales Revenue STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2011 Equity holders of the Company attributable to: Equity holders of the Company opeesv ls)icm o h er 20198 39828 ,4,8 (429,203) 1,843,880 (3,958,248) (2,031,938) comprehensive (loss)/income for the year Finance costs Administrative expenses The accompanying accounting policies and explanatory notes form an integral part ofthe financial statements. Statements of Comprehensive Income oe21 0021 2010 2011 2010 2011 Note 11 1 0.80 11 02462539,396 214,612 10 22650 44764 ,4,8 (528,280) 1,843,880 (4,497,644) (2,246,550) 6 23019 (2,498,703) (2,380,119) 9 (48829 5,1,2)- (55,412,122) (44,878,269) 5 5739763,919,829 55,713,967 4 20198 39828 ,4,8 (429,203) 1,843,880 (3,958,248) (2,031,938) 20198 39828 ,4,8 (429,203) 1,843,880 (3,958,248) (2,031,938) 1,3,9)(12980 5623 (528,280) (526,243) (11,299,820) (11,435,099) 085688,507,707 10,835,698 3,7 9,7 2,370,123 793,172 732,970 0.80 RM Group 1.56 1.56 RM RM Company 99,077 - - - - RM - - - - - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 41 42 Statements of Financial Position

STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2011

Group Company Note 2011 2010 2011 2010 RM RM RM RM Assets Non-current assets Property, plant and equipment 12 1,558,182 1,478,705 - - Land held for property development 13(a) 311,032,676 337,900,108 - - Investment in subsidiaries 14 - - 166,817,000 166,817,000 312,590,858 339,378,813 166,817,000 166,817,000

Current assets Property development costs 13(b) 79,503,994 67,290,451 - - Inventories 15 28,074,708 25,465,890 - - Trade and other receivables 16 11,259,997 7,766,527 56,841,888 54,947,726 Other current assets 17 2,880,024 13,077,387 1,809 47 Tax recoverable 625,570 508,481 259,202 259,202 Cash and bank balances 18 3,631,283 5,302,549 2,112 54,315 125,975,576 119,411,285 57,105,011 55,261,290 Total assets 438,566,434 458,790,098 223,922,011 222,078,290

Equity and liabilities

Current liabilities Trade and other payables 19 11,520,688 12,868,877 4,190,133 4,190,292 Borrowings 20 26,127,071 29,941,180 - - Other current liabilities 21 5,369,486 3,212,336 - - 43,017,245 46,022,393 4,190,133 4,190,292

Net current assets 82,958,331 73,388,892 52,914,878 51,070,998

Non-current liabilities Borrowings 20 38,340,993 53,298,559 - - Deferred taxation 25 60,003,988 60,233,000 - - 98,344,981 113,531,559 - -

Total liabilities 141,362,226 159,553,952 4,190,133 4,190,292

Equity attributable to equity holders of the Company Share capital 22 253,317,000 253,317,000 253,317,000 253,317,000 Share premium 23 22,343 22,343 22,343 22,343 Retained earnings/(Accumulated losses) 23 41,364,865 43,396,803 (33,607,465) (35,451,345) 294,704,208 296,736,146 219,731,878 217,887,998 Non-controlling interests 24 2,500,000 2,500,000 - - Total equity 297,204,208 299,236,146 219,731,878 217,887,998

Total equity and liabilities 438,566,434 458,790,098 223,922,011 222,078,290 Focal Aims Holdings Berhad . Annual Report 2011 Focal

Focal The accompanying accounting policies and explanatory notes form an integral part of the financial statements. A i m s At 30 September 2010 Total comprehensive loss At 1 October 2009 9,0,0 9,0,0 5,1,0 2,4 4,6,6 2,500,000 41,364,865 22,343 253,317,000 294,704,208 297,204,208 At 30 September 2011 Total comprehensive loss At 1 October 2010 FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2011 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Consolidated Statement of Changes In Equity The accompanying accounting policies and explanatory notes form an integral part of the financial statements. oa Ttlcptlpeimerig interests earnings premium capital Total total 9,3,4 9,3,4 5,1,0 2334,9,0 2,500,000 43,396,803 22,343 253,317,000 296,736,146 299,236,146 0,9,9 0,9,9 5,1,0 2334,5,5 2,500,000 47,355,051 22,343 253,317,000 300,694,394 303,194,394 9,3,4 9,3,4 5,1,0 2334,9,0 2,500,000 43,396,803 22,343 253,317,000 296,736,146 299,236,146 39828 (3,958,248) (3,958,248) 20198 (2,031,938) (2,031,938) Equity, M M M M M RM RM RM RM RM RM <--Attributable to equity holders of the Company--> --o-itiual-- itiual Non- Distributable <---Non-Distributable---> hr Sae eandcontrolling Retained Share Share - - (3,958,248) - (2,031,938) - - - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 43 44 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 At 30 September 2010 Total comprehensive loss At 1 October 2009 At 30 September 2011 Total comprehensive income At 1 October 2010 FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2011 COMPANY STATEMENT OF CHANGES IN EQUITY Company Statement of Changes In Equity The accompanying accounting policies and explanatory notes form an integral part ofthe financial statements.

1,8,9 5,1,0 233(35,451,345) 22,343 253,317,000 217,887,998 1,1,0 5,1,0 233(35,022,142) 22,343 253,317,000 218,317,201 1,3,7 5,1,0 233(33,607,465) 22,343 253,317,000 219,731,878 1,8,9 5,1,0 2,4 (35,451,345) 22,343 253,317,000 217,887,998 1,843,880 (429,203) qiy hr Sae Accumulated Share Share Equity, oa aia peim losses premium capital total M RM RM <---Non-Distributable---> - - RM (429,203) - 1,843,880 - RM Net cash flows generated from/ Income taxes refunded Income taxes paid Interest paid Interest received ahfosgnrtdfo/ue n prtos 800311,9,9 5014 (523,964) (520,164) 16,798,090 28,090,391 Cash flows generated from/(used in) operations Payables Receivables netre Inventories Property development expenditure Operating cash flows before changes in Adjustments for : (Loss)/Profit before tax Operating activities STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2011 (used in) operating activities working capital Write down of property development cost and equipment Loss/(Gain) on disposal of property, plant receivables Reversal of allowance for impairment on Property, plant and equipment written off Interest income Interest expense Depreciation Statements of Cash Flows 5,0 298,970 250,504 1,6,6)(6,245,469) (10,761,260) 745181,5,8 5014 (523,964) (520,164) 11,055,889 17,435,198 3050915,901,379 23,035,029 26888 8,376,121 (2,608,818) 22650 44764 ,4,8 (528,280) 1,843,880 (4,497,644) (2,246,550) ,0,9 66504 172 1,562 (1,762) (6,665,094) 6,703,893 ,8,1 2,498,703 2,380,119 1148 (153,880) (131,488) 2755 (241,712) (237,555) 3,5 241,712 237,555 0,6 9,3 ,4 2,754 7,841 596,833 808,961 5,2 14119 5623 (528,280) (526,243) (1,411,149) 151,326 ,0 3,713 4,604 0121 012010 2011 2010 2011 0 (425,472) 204 RM Group 415,436 - 952,293 - - RM (2,370,123) - RM Company ------RM ------Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 45 46 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Cash and cash equivalents Cash and cash equivalents Net decrease in cash and Net cash flows used in financing activities Repayment of term loans Drawdown of term loans Financing activities Net cash flows (used in)/generated Advances from/(to) subsidiary companies Dividend received from subsidiary Proceeds from disposal of property, plant Purchase of property, plant and equipment Investing activities STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2011 Statements of Cash Flows (Cont'd) at 30 September (Note 18) at 1 October 2010/2009 cash equivalents from investing activities and equipment The accompanying accounting policies and explanatory notes form an integral part ofthe financial statements. 63481 46861 21254,315 2,112 (4,638,631) (6,344,831) 1,0,0)(12,014,986) (18,806,609) 2,0,0)(28,714,986) (22,906,609) 46861 39998 435134,943 54,315 (3,929,928) (4,638,631) 17620 7873 5,0) (80,628) (52,203) (708,703) (1,706,200) ,0,0 16,700,000 4,100,000 3460 (332,406) (344,690) 3479 5,9 6,6 443,336 467,961 250,394 (334,789) ,0 582,800 9,901 0121 012010 2011 2010 2011 RM Group - - RM 4791(256,664) 467,961 - - RM Company - - - 700,000 - - - RM - - - - - .SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2. .CORPORATE INFORMATION 1. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2011 Amendments to FRS 2: Share-based Payment FRS 3: Business Combinations (revised) FRS 1: First-time Adoption of Financial Reporting Standards Amendments to FRS 132: Classification of Rights Issues IC Interpretation 14: FRS 119 – The Limit on a Defined Benefit Asset, Minimum Funding IC Interpretation 13: Customer Loyalty Programmes IC Interpretation 10: Interim Financial Reporting and Impairment IC Interpretation 9: Reassessment of Embedded Derivatives Improvements to FRSs issued in 2009 Amendments to FRS 139: Financial Instruments: Recognition and Measurement, FRS 7: Amendments to FRS 138: Intangible Assets Amendments to FRS 132: Financial Instruments: Presentation Amendments to FRS 2: Share-based Payment – Vesting Conditions and Cancellations Amendments to FRS 1: First-time Adoption of Financial Reporting Standards and FRS 127: FRS 139: Financial Instruments: Recognition and Measurement FRS 123: Borrowing Costs FRS 101: Presentation of Financial Statements (Revised) FRS 7: Financial Instruments: Disclosures Interpretations mandatory for annual financial periods beginning on or after 1 January 2010. n Otbr 00 te ru ad h Cmay dpe te olwn nw n aedd R ad C IC and FRS amended and new following the adopted Company the and Group the 2010, October 1 On The accounting policies adopted are consistent with those of the previous financial year except the following: . Changes in accounting 2.2policies financial statements are presented in Ringgit Malaysia (RM). h iaca ttmnso h ru n fteCmayhv enpeae nahsoia otbssadte historicalpreparedCompanythebeenhavethe financialand basisa cost Theof Group statements on andthe of 2010 as described fully in Note 2.2. opn dpe e n eie R hc r adtr o iaca eid einn no fe aur Company adopted new and revised FRS which are mandatory for financial periods beginning onor after 1January Standards and the Companies Act, 1965 in Malaysia. At the beginning of the current financial year, the Group and the The financial statements of the Group and of the Company have been prepared in accordance with Financial Reporting . Basis of preparation 2.1 activities during the financial year. disclosed in Note 14 to the financial statements. There have been no significant changes in the nature of the principal The principal activity of the Company is investment holding. The principal activities of the subsidiary companies are as located at Suite 338, 3rd Floor, Johor Tower, Jalan Gereja, 80100 Johor Bahru, Johor Darul Ta'zim. Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company is The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Requirements and their Interaction Financial Instruments: Disclosures and IC Interpretation 9: Reassessment of Embedded Derivatives Jointly Controlled Entity or Associate Consolidated and Separate Financial Statements: Cost of an Investment in a Subsidiary, Notes to The Financial Statements Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 47 48 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Notes to The Financial Statements (Cont'd) The revised FRS 101 was adopted retrospectively by the Group and the Company. evaluate the Group’s objectives, policies and processes for managing capital (see Note 31). The revised FRS 101 also requires the Group to make new disclosures to enable users of the financial statements to change in accounting policy, the correction of an error or the classification of items in the financial statements. In addition, a statement of financial position is required at the beginning of the earliest comparative period following a single statement. statement, or in two linked statements. The Group and the Company have elected to present this statement as one oehrwt l te tm frcgie noeadepnercgie ietyi qiy ihri n ige single oneequity,recognised expensedirectlyin recognisedin and either income of items other all withtogether introduces the statement of comprehensive income, with all items of income and expense recognised in profit or loss, ftascin ihonr,wt l o-we hne neut rsne sasnl ie h tnadas also Standard The line. single a as presentedequity in changesnon-owner all with owners, withtransactions of Standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details h eie R 0 nrdcscagsi h rsnainaddslsrso iaca ttmns h eie presentationfinancialdisclosuresrevisedstatements.theintroduces andTheof in 101changes revised FRS The FRS 101 Presentation of Financial Statements (Revised) Group’s and the Company’s financial statements for the year ended 30 September 2011. h e icoue aentbe ple otecmaaie.Tenwdslsrsaeicue hogotte disclosurescomparatives.newincludedthroughout aretheThe the appliedto beendisclosures notnew havethe The Group and the Company have applied FRS 7 prospectively in accordance with the transitional provisions. Hence, risk and market risk, including sensitivity analysis to market risk. exposure to risks arising from financial instruments, including specified minimum disclosures about credit risk, liquidity nomto bu iaca ntuet.I eurstedslsr fqaiaieadqatttv nomto bu informationaboutfinancial instruments. requiresIt disclosurethe qualitative of quantitativeand information about R 12 iaca ntuet:Dslsr ad rsnain FS itoue e dslsrst mrv te the improve to disclosures new introduces 7 Presentation. FRS and DisclosureInstruments: Financial 132 FRS Prior to 1 October 2010, information on financial instruments was disclosed in accordance with the requirements of FRS 7 Financial Instruments: Disclosures position of the Group and the Company except for those discussed below: h dpino h bv tnad n nepeain i o aeayefc ntefnnilpromneo performancefinancialor the on effect any have interpretationsnot standardsanddid above the of adoption The the Group or the Company. effective for annual financial periods beginning on or after 1 October 2010. These FRS are, however, not applicable to FRS 4 Insurance Contracts and TR i-3 Presentation of Financial Statements of Islamic Financial Institutions will also be IC Interpretation 17: Distributions of Non-cash Assets to Owners IC Interpretation 16: Hedges of a Net Investment in a Foreign Operation IC Interpretation 12: Service Concession Arrangements Amendments to IC Interpretation 9: Reassessment of Embedded Derivatives Amendments to FRS 138: Intangible Assets Amendments to FRS 127: Consolidated and Separate Financial Statements Amendments to FRS 5: Non-current Assets Held for Sale and Discontinued Operations like transactions and events in similar circumstances. statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied to eotn ae h iaca ttmnso h usdaisue ntepeaaino h osldtdfnnil financialconsolidated the preparationof the in usedsubsidiaries the of statementsfinancial The date.reporting The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the . Basis of consolidation 2.4 could be different if prepared under the MFRS Framework. performance and financial position as disclosed in these financial statements for the year ended 30 September 2011 tnad ad conig tnad udr h MR Faeok Acrigy te osldtd iaca financial consolidated the Accordingly, Framework. MFRS the under standards accounting and Standards The Group has not completed its assessment of the financial effects of the differences between Financial Reporting against opening retained profits. application of MFRS Framework. The majority of the adjustments required on transition will be made, retrospectively, ttmns h ru ilb eurdt ett h oprtv iaca ttmnst mut elcigte reflectingamountsthecomparative financialstatements to restatethe required to be willGroup statements,the is FSfnnilsaeet o h eredn 0Spebr21.I rsnigisfrtMR iaca financial MFRS first its presenting In 2014. September 30 ending year the for statementsfinancial MFRS first Framework. Accordingly, the Group will be required to prepare financial statements using the MFRS Framework in its The Group falls within the scope definition of Transitioning Entities and has opted to defer adoption of the new MFRS beginning on or after 1 January 2013. osqety dpino h FSFaeokb rniinn niiswl emnaoyfrana eid periods annual for mandatory be Transitioningwill Entitiesby Framework MFRS the of Consequently,adoption rniinn niiswl ealwdt ee dpino h e FSFaeokfra diinloeya. year.one additional an Frameworkfor MFRS new the of adoption defer to allowed be Transitioningwill Entities and venturer (herein called ‘Transitioning Entities’). and IC Interpretation 15 Agreements for Construction of Real Estate (IC 15), including its parent, significant investor after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture (MFRS 141) h FSFaeoki ob ple yalEtte te hnPiaeEtte o nulprosbgnigo r The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning on or accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework). n 9 oebr 01 te aasa Acutn Sadrs or (AB ise a e MS apoe approved MASB new a issued (MASB) Board Standards Accounting Malaysian the 2011, November 19 On Malaysian Financial Reporting Standards (MFRS Framework) on the financial statements in the period of initial application. Except for the new disclosures required under amendments to FRS 7, the directors do not expect any material impact FRS 124: Related Party Disclosures CItrrtto 9 xigihn iaca iblte ihEut ntuet 1 July 2011 IC Interpretation 19: Extinguishing Financial Liabilities with Equity Instruments Amendments to IC Interpretation 14: Prepayments of a Minimum Funding IC Interpretation 18: Transfers of Assets from Customers CItrrtto :Dtriigwehro ragmn otisaLae 1 January 2011 IC Interpretation 4: Determining whether on Arrangement contains a Lease Group Cash-settled Share-based Payment Transactions Additional Exemptions for First-Time Adopters (Amendments to FRS 1) Improvements to FRSs (2010) mnmnst R :IpoigDslsrsaotFnnilIsrmns1 January 2011 Amendments to FRS 7: Improving Disclosures about Financial Instruments Amendments to FRS 1: Limited Exemption from Comparative FRS 7 Description are not yet effective : The Group and the Company have not adopted the following standards and interpretations that have been issued but . Standards issued but not yet effective2.3 Requirement (Amendments to FRS 2) Disclosures for First-time Adopters Notes to The Financial Statements (Cont'd) 1 January 2012 1 July 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011 begining on or after Effective for annual period Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 49 50 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Notes to The Financial Statements (Cont'd) recognised in profit or loss as incurred. qimn sarpaeeti h eonto rtraaestsid l te earadmitnnecssae are costs maintenance and repair other All satisfied. are criteriarecognition the if replacement a as equipment Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the property, plant and intervals, the Group recognises such parts as individual assets with specific useful lives and depreciation, respectively. accumulated impairment losses. When significant parts of property, plant and equipment are required to be replaced in usqett eonto,poet,patadeupetaemaue tcs esacmltddpeito n Subsequent to recognition, property, plant and equipment are measured at cost less accumulated depreciation and will flow to the Group and the cost of the item can be measured reliably. equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item l tm fpoet,patadeupetaeiiilyrcre tcs.Tecs fa tmo rpry ln n property,itemsof All equipmentplantand are property, initiallyof item recorded an of costcost.The at plantand . Property, plant and equipment 2.7 directly in equity and attributed to owners of the parent. hc h o-otoln neeti dutdadtefi au ftecnieainpi rrcie srcgie whichnon-controllingthe interestis adjusted fairtheandconsiderationthe value of receivedpaid or is recognised are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by for as equity transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests Changes in the Company owner's ownership interest in a subsidiary that do not result in a loss of control are accounted the consolidated statement of financial position, separately from equity attributable to owners of the Company. Company, and is presented separately in the consolidated statement of comprehensive income and within equity in Company, and is presented separately in the consolidated statement of comprehensive income and within equity in o-otoln neetrpeet h qiyi usdaisntatiual,drcl ridrcl,t weso h Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners of the . Transactions with non-controlling 2.6 interest losses. In the Company’s separate financial statements, investments in subsidiaries are accounted for at cost less impairment obtain benefits from its activities. A subsidiary is an entity over which the Group has the power to govern the financial and operating policies so as to A subsidiary is an entity over which the Group has the power to govern the financial and operating policies so as to Subsidiaries 2.5 continue to be consolidated until the date that such control ceases. usdaisaecnoiae rmtedt faqiiin en h aeo hc h ru ban oto,ad Subsidiaries areconsolidated fromacquisition,date the of which beingdateGroupthe the on obtains control, and gain on bargain purchase in profit or loss on the acquisition date. statement of financial position. In instances where the latter amount exceeds the former, the excess is recognised as a acquiree (if any), over the net fair value of the acquiree's identifiable assets and liabilities is recorded as goodwill in the non-controlling interest in the acquiree (if any), and the fair value of the Group's previously held equity interest in the n xeso h u ftefi au ftecnieaintaserdi h uiescmiain h muto Any excess of the sum of the fair value of the consideration transferred in the business combination, the amount of acquiree's net identifiable assets. srcgie nteaqiiindt tfi au,o ttenncnrligitrs' rprint hr fte the non-controllingof proportionateinterest'ssharethe at or value, fair at dateacquisition the on recognisedis The Group elects for each individual business combination, whether the non-controlling interest in the acquiree (if any) value at the acquisition date and any corresponding gain or loss is recognised in profit or loss. In business combinations achieved in stages, previously held equity interests in the acquiree are re-measured to fair are received. Acquisition-related costs are recognised as expenses in the periods in which the costs are incurred and the services iblte asmd n bsns cmiain r maue iiily t hi fi vle a te custo dt. date. acquisition the at values fair their at initially measured are combination business a in assumed liabilities custoso usdaisaeacutdfrb pligteaqiiinmto.Ietfal sesaqie n Acquisitionssubsidiariesof areaccounted applying by foracquisitionthe method. Identifiable assetsacquired and are eliminated in full. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions billings. n h xeso ilnst ucaesoe eeu eonsdi h noesaeeti lsiida rges andtheexcess billings of purchasers to over revenue recognisedin theincome statement is classified as progress The excess of revenue recognised in the income statement over billings to purchasers is classified as accrued billings of cost and net realisable value. Property development costs not recognised as an expense are recognised as an asset, which is measured at the lower recognised as an expense immediately. n epce oso dvlpet rjc,icuig ot t eicre vrte eet laiiy eid i is period, liability defects the over incurred be to costs including project, development a on loss expected Any development costs on properties sold are recognised as an expense in the period in which they are incurred. recognised only to the extent of property development costs incurred that is probable will be recoverable, and property Where the financial outcome of a development activity cannot be reliably estimated, property development revenue is estimated total property development costs. eemndb h rprinta rprydvlpetcssicre o okpromdt aeba ote the to bear date to performed work for incurred costsdevelopment property thatproportion the by determined expenses are recognised in the income statement by using the stage of completion method. The stage of completion is When the financial outcome of a development activity can be reliably estimated, property development revenue and allocated on a reasonable basis to such activities. Property development costs comprise all costs that are directly attributable to development activities or that can be . Property development costs 2.9 the normal operating cycle. circumstances indicate that the carrying value may not be recoverable. activities have commenced and where it can be demonstrated that the development activities can be completed within h cryn vle o poet, ln ad qimn ae eiwd o ipimn we eet o cags n in changes or events when impairment for reviewed are equipment and property, plant of values carrying The adhl o rprydvlpeti elsiida rprydvlpetcssa h on hndvlpet propertyforheld Landdevelopment reclassified is property developmentas whenpointdevelopment the at costs estimated useful life, at the following annual rates : within non-current assets and is stated at cost less any accumulated impairment losses. qimn spoie o nasrih-iebsst rt f h oto ahastt t eiulvleoe h residualthe overitsvalue to asseteach of cost the offstraight-linewrite to a basisprovidedon equipment foris development activities are not expected to be completed within the normal operating cycle. Such land is classified developmentactivities areexpectednot be completed to withinnormalthe operating cycle.Suchis classified land reodln a niie sfllf n hrfr sntdpeitd ercaino te rpry ln n depreciated.property,notthereforeDepreciation otherandis of lifeFreeholdunlimitedanduseful plant has land Land held for property development consists of land where no development activities have been carried out or where . Land held for development 2.8 year the asset is derecognised. expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the profit or loss in the nie fpoet,patadeupeti eeonsduo ipslo hnn uueeooi eeisae property,futureeconomicof benefitsno arederecogniseditemwhenequipment is An disposalandor plant upon prospectively, if appropriate. h rsda vle ueu lf ad ercain ehd r rvee a ec fnnil ered ad dutd adjusted and year-end, financial each at reviewed are method depreciation and life useful value, residual The Other assets Office equipment and fittings Motor vehicles Buildings Notes to The Financial Statements (Cont'd) 10% - 20% 10% - 33% 20% 2 % Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 51 52 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Notes to The Financial Statements (Cont'd) after the reporting date which are classified as non-current. on n eevbe r lsiida urn ses xetfrtoehvn auiydtsltrta 2mnh Loans and receivables are classified as current assets, except for those having maturity dates later than 12 months and through the amortisation process. method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, usqett nta eonto,lasadrcialsaemaue taotsdcs sn h fetv neet Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest and receivables. iaca seswt ie rdtrial amnsta r o utdi natv aktaecasfe slas Financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans the Company classify their financial assets as loans and receivables. The Group and the Company determine the classification of their financial assets at initial recognition. The Group and at fair value through profit or loss, directly attributable transaction costs. When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not Company become a party to the contractual provisions of the financial instrument. iaca sesaercgie ntesaeet ffnnilpsto hn n nywe,teGopadte the and Group the when, only and when, positionfinancial of statements the in recognisedare assetsFinancial .2Financial assets2.12 completion and the estimated costs necessary to make the sale. e elsbevlei h siae eln rc nteodnr oreo uiesls h siae ot f of costsestimated the less business of course ordinary the in price sellingestimated the is realisablevalue Net direct costs and appropriate proportions of common costs. oti eemndo h pcfcietfcto ai n opie ot soitdwt h custo fln, Cost isdeterminedon thespecific identification basisandcomprises costs associated with theacquisition of land, Inventories consist of unsold properties and are stated at lower of cost and net realisable value. .1Inventories 2.11 goodwill is not reversed in a subsequent period. oipimn osbe eonsdpeiul.Sc eesli eonsdi rfto os maretls n on loss Impairmentloss. or profit in recognisedis previously.recognisedreversalbeenSuch loss impairment no amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation, had maretls a eonsd fta stecs,tecryn muto h se sicesdt t eoeal impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable nyi hr a enacag nteetmtsue odtrieteastsrcvrbeaon ic h at determineasset’sestimatesrecoverabletheto theused last change in theamount since a been there has if only maretlse a olne xs rmyhv erae.Apeiul eonsdipimn osi eesd impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed nassmn smd tec eotn aea owehrteei n niainta rvosyrcgie recognisedpreviously that indication any is there whether to as date reporting each at made is assessment An Impairment losses are recognised in profit or loss. reduce the carrying amount of the other assets in the unit or groups of units on a pro-rata basis. loae is ordc h arigaon faygowl loae otoeuiso ruso nt n hn o allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to rte ont t eoeal mut maretlse eonsdi epc faCUo ruso Gsae written down to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable amount, the asset is their present value using a pre-tax discount rate that reflects current market assessments of the time value of money nassigvlei s,teetmtdftr ahfosepce ob eeae yteastaedsone o In assessing value in use, the estimated future cash flows expected to be generated by the asset are discounted to cash flows (cash-generating units (“CGU”)). purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable nastsrcvrbeaon stehge fa se’ arvlels ot osl n t au nue o h Foruse. in valuetheits andsell to costsasset’slessvalueasset’sfair recoverable an An higher of the amountis the asset’s recoverable amount. indication exists, or when an annual impairment assessment for an asset is required, the Group makes an estimate of The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such .0Impairment2.10 of non-financial assets subsequently measured at amortised cost using the effective interest method. rd ad te pybe ae eonsd ntal a fi vle ls iety trbtbe rnato css n and costs transaction attributable directly plus value fair at initially recognised are payables other and Trade borrowings. h Gops n te opn' ohr iaca laiiis nld tae aals ohr aalsad on ad and loans and payables other payables, trade include liabilities financial other Company's the and Group’s The .3Impairment 2.13 of financial assets liabilities are classified as other financial liabilities. consideration received is recognised in profit or loss. when, the Group and the Company become a party to the contractual provisions of the financial instrument. Financial eeonto fafnnilasti t niey h ifrnebtentecryn mutadtesmo h the of sum the and amount carrying entirety,the differencebetweenits the in assetfinancial a derecognitionof iaca se sdrcgie hntecnrculrgtt eev ahfosfo h se a xie.O expired.hasderecognisedassetOn financialreceivefromthecontractual is flows asset cashtheto A right when Financial liabilities, within the scope of FRS 139, are recognised in the statement of financial position when, and only definitions of a financial liability. iaca iblte r lsiidacrigt h usac ftecnrcularneet nee noadte Financialliabilities classifiedarecontractualthesubstanceaccording arrangementstheof to theentered and into .6Financial2.16 liabilities passage of time is recognised as a finance cost. prpit,terssseii otelaiiy hndsonigi sd h nraei h rvso u ote the to dueprovision the in increase the used, is discountingliability.When the to specific risks appropriate,the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the rvsosaervee tec eotn aeadajse orfettecretbs siae fi sn ogr longer no is Provisionsit currentreflectestimate.adjustedbesttheIf reportingto eachreviewedandare date at obligation can be estimated reliably. spoal hta ufo feooi eore ilb eurdt eteteolgto n h muto h the of amount the obligationand the settlerequired to resourcesbe economic will of outflow an probablethat is Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it .5Provisions2.15 overdrafts that form an integral part of the Group’s cash management. nw muto ahadwihaesbett nisgiiatrs fcagsi au.Teeas nld ak bankinclude alsoThese value. changesin insignificantof an risk subjectto are which and cash of amountknown Cash and cash equivalents comprise cash at bank and on hand, and demand deposits that are readily convertible to .4Cash 2.14 and cash equivalents reversal is recognised in profit or loss. extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to becomes uncollectible, it is written off against the allowance account. h arigaon ftefnnilasti eue hog h s fa loac con. hnarcial The carrying amount of the financial asset is reduced through the use of an allowance When a account.receivable interest rate. The impairment loss is recognised in profit or loss. mutadtepeetvleo siae uuecs lw icutda h iaca se’ rgnlefcie financialasset’soriginaleffectivethediscounted estimatedflows at futurecash present of value the and amount If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying debtor and default or significant delay in payments. Group and the Company consider factors such as the probability of insolvency or significant financial difficulties of the odtriewehrteei betv vdneta nipimn oso iaca seshsbe nurd h To determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the asset is impaired. h ru n h opn sesa ahrprigdt hte hr sayojcieeiec htafnnil The Group and the Company assess at each reporting date whether there is any objective evidence that a financial Notes to The Financial Statements (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 53 54 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Notes to The Financial Statements (Cont'd) revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable. eeu srcgie oteetn hti spoal htteeooi eeiswl lwt h ru n h the andGroup the to flow economicbenefitswill the probable that is it thatextent therecognised to is Revenue .0Revenue 2.20 recognition b Short term benefits (b) a Defined contribution plans (a) .9Employee 2.19 benefits interest and other costs that the Group and the Company incurred in connection with the borrowing of funds. l te orwn ot r eonsdi rfto osi h eidte r nurd orwn ot oss f All other borrowing costs are recognised in profit or loss in the period they are incurred. Borrowing costs consist of Borrowing costs are capitalised until the assets are substantially completed for their intended use or sale. to prepare the asset for its intended use or sale are in progress and the expenditures and borrowing costs are incurred. acquisition, construction or production of that asset. Capitalisation of borrowing costs commences when the activities orwn css r cptlsd spr fte oto qaiyn se i hyae iety trbtbet h the to attributable directly are they if asset qualifying a of cost the of part as capitalised are costs Borrowing .8Borrowing 2.18 costs recognised less cumulative amortisation. best estimate of the expenditure required to settle the present obligation at the reporting date and the amount initially as the issuer, is required to reimburse the holder for the associated loss, the liability is measured at the higher of the guarantee. If the debtor fails to make payment relating to a financial guarantee contract when it is due and the Group, nta eonto,fnnilgaatecnrcsaercgie sicm npoi rls vrtepro fte the of period the over loss or profit in income recognisedas arecontractsrecognition, guarantee financialinitial Financial guarantee contracts are recognised initially as a liability at fair value, net of transaction costs. Subsequent to holder for a loss it incurs because a specified debtor fails to make payment when due. iaca urne otati otatta eursteise omk pcfe amnst emus h reimbursespecifiedmakepaymentsto therequirescontract to thatissuer financial thea guarantee contractA is .7Financial 2.17 guarantee contracts the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss. are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability iaca iblt sdrcgie hnteolgto ne h iblt setnuse.We neitn iaca A financial liability is derecognised when the obligation under the liability is extinguished. When an existing financial through the amortisation process. For other financial liabilities, gains and losses are recognised in profit or loss when the liabilities are derecognised, and the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. measured at amortised cost using the effective interest method. Borrowings are classified as current liabilities unless on n broig r rcgie iiily tfi au,nt ftascin ot icre, n sbeunl subsequently and incurred, costs transaction of net value, fair at initially recognised are borrowings and Loans by employees up to the reporting date. liability when they accrue to the employees. The estimated liability for leave is recognised for services rendered soitdsrie r edrdb mlye.Epoe nilmnst nullaeaercgie s as recognisedare leave annual to entitlementsEmployee employees. by renderedare services associated Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the which the related service is performed. cee otiuin odfndcnrbto eso cee r eonsda nepnei h eidi scheme. Contributions to defined contribution pension schemes are recognised as an expense in the period in h ru ae otiuin oteEpoe rvdn udi aasa eie otiuinpnin contributiondefinedpensionEmployeeProvidentMalaysia, a the Fundcontributions in makes Groupto The b Deferred tax (b) a Current tax (a) .1Income 2.21 tax c Dividend income (c) b Interest income (b) a Sale of properties (a) taxation authority. sesaantcrettxlaiiisadtedfre ae eaet h aetxbeett n h ae same the and entity taxable same the to relatetaxesdeferred the andliabilities tax current against assets Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax in equity and deferred tax arising from a business combination is adjusted against goodwill on acquisition. items are recognised in correlation to the underlying transaction either in other comprehensive income or directly Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax enacted at the reporting date. asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the extent that it has become probable that future taxable profit will allow the deferred tax assets to be utilised. tlsd neonsddfre a sesaerasse tec eotn aeadaercgie ote the recognisedto are and reportingdate each reassessed at areutilised.Unrecognisedassets deferred tax no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is transaction, affects neither the accounting profit nor taxable profit or loss. eonto fa se rlaiiyi rnato hti o uiescmiainad ttetm fte the of time the businesscombinationat and, a not transactionis that a liability in or asset recognitionan of utilised except where the deferred tax asset relating to the deductible temporary difference arises from the initial eutbetmoaydfeecs n h ar owr fuue a rdt n nsdtxlse a e be lossescan creditsunusedtax unusedtaxand of forward deductibledifferences, temporary carry the and n nsdtxlse,t h xetta ti rbbeta aal rftwl eaalbeaantwihte probableavailabletaxableis profitagainstthatbe thewhich will it extent that the losses,to unusedtax and Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination Deferred tax liabilities are recognised for all temporary differences, except where the deferred tax liability arises tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax is provided using the liability method on temporary differences at the reporting date between the profit or loss, either in other comprehensive income or directly in equity. Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised outside substantively enacted by the reporting date. aainatoiis h a ae n a asue ocmueteaon r hs htaeeatdo or enactedare that those areamount the compute to used laws tax and rates tax authorities.taxationThe urn a sesadlaiiisaemaue tteaon xetdt ercvrdfo rpi ote the to paid recoveredor frombe to expectedamount the measuredliabilitiesat areand assets Currenttax Dividend income is recognised when the right to receive payment is established. Interest income is recognised using the effective interest method. Revenue from sale of properties is accounted for by the stage of completion method as described in Note 2.9. Notes to The Financial Statements (Cont'd) Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 55 56 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 .REVENUE 4. .SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES 3. Notes to The Financial Statements (Cont'd) stage of completion method as further disclosed in Note 2.9. Revenue of the Group represents sales of development properties net of discounts recognised in accordance with the The carrying amounts of the assets arising from property development activities are disclosed in Note 13. on the work of specialists. property development costs. In making the judgement, the Group evaluates based on past experience and by relying ot nurd h siae oa rprydvlpetrvneadcss swl stercvrblt fte the recoverabilityof the as well as costs, andrevenue developmentproperty total estimated theincurred, costs infcn ugmn srqie ndtriigtesaeo opein h xeto h rprydvlpet propertydevelopmentthe of extentcompletion, theof stagedeterminingrequiredSignificant thejudgementin is development costs incurred for work performed to date bear to the estimated total property development costs. sn te tg o cmlto mto. h sae f opein s eemnd y h pooto ta poet property that proportion the by determined is completion of stage The method. completion of stage the using h ru eonsspoet eeomn eeu n xessi h ttmn fcmrhnieicm y GroupTherecognises property development revenue expensesstatementandthecomprehensive in of incomeby financial year relates to the Group's property development activities. have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that future. notoe htcudrqieamtra dutett h arigaon fteasto iblt fetdi h in outcomes that could require amaterial adjustment to the carrying amount ofthe asset orliability affected in the contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result supin htafc h eotdaonso eeus xess sesadlaiiis n h icoueo disclosureof theliabilities, and revenues,and expenses, assets reportedof amounts the affect assumptions that h peaain fte ru’ fnnil ttmnsrqie aaeett aejdeet, siae ad and estimatesjudgements, make to managementrequires statements financial Group’s the of preparation The they are declared. Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which riaysae r eodda h rcesrcie,nto ietyatiual nrmna rnato ot. directlyattributableproceedsincrementalof received, thetransactionnet recorded costs.sharesareat Ordinary after deducting all of its liabilities. Ordinary shares are equity instruments. neut ntueti n otatta vdne eiulitrs nteast fteGopadteCmay An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company .2Share 2.22 capital and share issuance expenses c Sales tax (c) receivables or payables in the statements of financial position. h e muto ae a eoeal rm rpybet,tetxto uhrt sicue spr f of part as included is authority taxation the to, payable or from,recoverable tax sales of amount net The Receivables and payables that are stated with the amount of sales - tax included. hr h ae a nurdi ucaeo seso evcsi o eoeal rmtetxto taxation the fromrecoverable not is services or assets of purchase a in incurred tax sales the Where - Revenues, expenses and assets are recognised net of the amount of sales tax except: the expense item as applicable; and authority, in which case the sales tax is recognised as part of the cost of acquisition of the asset or as part of . EMPLOYEE BENEFITS EXPENSE 7. . LOSS BEFORE TAX 6. . COST OF SALES 5. Employee benefits expense (Note 7) costs (Note 13) Write down of property development Rental expense plant and equipment Loss/(Gain) on disposal of property, receivables Reversal of allowance for impairment on Property, plant and equipment written off Interest income Non-executive directors' fees Depreciation Auditors' remuneration The following items have been included in arriving at loss before tax: Cost of inventories sold Property development costs (Note 13(b)) (comprising salaries, bonus and other emoluments) amounting to RM2,185,453 (2010 : RM2,218,894). nlddi mlyebnft xes fteCmayaeeeuieadnneeuiedrcos eueain non-executivedirectors'remunerationand executive are Company the of expensebenefits employee in Included Social security contributions Defined contribution plan Salaries and allowances - other services - statutory audits Notes to The Financial Statements (Cont'd) ,7,7 ,7,1 510 25,900 25,100 5,172,816 5,676,479 ,4,6 ,8,9 2,0 25,900 25,100 4,580,099 5,047,966 ,7,7 ,7,1 51025,900 25,100 5,172,816 5,676,479 2755 (241,712) (237,555) 0,0 566,272 600,005 7,5 268,798 271,853 5,0 2500 5,0 255,000 255,000 255,000 255,000 5,0 298,970 250,504 8582,4 - 26,445 28,508 4304,0 11,300 48,200 44,300 1506,0 2,0 20,000 25,000 66,500 71,500 ,0 3,713 4,604 0121 012010 2011 2010 2011 0121 012010 2011 2010 2011 0 (425,472) 204 RM RM Group 952,293 - - Group RM RM (2,370,123) - 4882955,412,122 44,878,269 0868346,437,141 40,846,803 ,3,6 8,974,981 4,031,466 012010 2011 RM RM RM Company ------Group Company RM RM RM ------Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 57 58 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 .FINANCE COSTS 9. .DIRECTORS' REMUNERATION 8. Notes to The Financial Statements (Cont'd) es:Itrs xes aiaie npoet eeomn ot Nt 3 (,8,4)(3,746,766) (8,381,141) Less : Interest expense capitalised in property development costs (Note 13) Interest expense on borrowings The details of remuneration receivable by directors of the Company during the year are as follows : Non- executive directors : Executive directors : bands is analysed below : h ubro ietr fteCmaywoettlrmnrto uigtefnnilya elwti h olwn The number of directors of the Company whose total remuneration during the financial year fell within the following Total Non-executive : Executive : Directors of the Company RM150,001 - RM200,000 RM50,000 and below RM950,001 - RM1,000,000 RM900,001 - RM950,000 RM700,001 - RM750,000 RM650,001 - RM700,000 Fees Salaries and other emoluments Defined contribution plan Bonus Salaries and other emoluments ,8,5 ,1,9 8,0 280,900 280,100 2,218,894 2,185,453 ,8,9 1,615,434 1,589,393 ,3,2 1,428,864 1,333,325 9,6 0,6 8,0 280,900 280,100 603,460 596,060 5,0 2500 5,0 255,000 255,000 255,000 255,000 4,6 4,6 510 25,900 25,100 348,460 341,060 9,8 186,570 195,588 60,480 0121 012010 2011 2010 2011 RM Group RM - Number of Directors 071206,245,469 10,761,260 ,8,1 2,498,703 2,380,119 012010 2011 012010 2011 RM RM 2 5 1 1 ------Company Group RM RM 2 5 1 1 ------0 INCOME TAX BENEFIT 10. profit for the year. Domestic income tax is calculated at the Malaysian statutory tax rate of 25% (2010: 25%) of the estimated assessable Income tax recognised in profit or loss Adjustments : Taxation at Malaysian statutory tax rate of 25% (2010 : 25%) Profit/(Loss) before tax Company Income tax recognised in profit or loss losses and unabsorbed capital allowances capital allowances Adjustments : Taxation at Malaysian statutory tax rate of 25% (2010 : 25%) Loss before tax Group rate for the years ended 30 September 2011 and 2010 are as follows: The reconciliation between tax benefit and the product of accounting results multiplied by the applicable corporate tax Reconciliation between income tax and accounting results noetxbnftrcgie npoi rls (1,1)(539,396) (214,612) Income tax benefit recognised in profit or loss Deferred tax (Note 25): Statement of comprehensive income: The major components of income tax benefit for the years ended 30 September 2011 and 2010 are : Major components of income tax benefit tax losses Deferred tax assets not recognised in respect of current year Income not subject to tax Expenses not deductible for tax purposes Deferred tax assets not recognised in respect of current year tax Utilisation of previously unrecognised tax losses and unabsorbed Effect of expenses not deductible for tax purposes temporary differences Relating to origination and reversal of Current year income tax Notes to The Financial Statements (Cont'd) 2902 (451,127) (229,012) 440(88,269) 14,400 01 00 01 2010 2011 2010 2011 RM Group M RM RM 22650 (4,497,644) (2,246,550) ,4,8 (528,280) 1,843,880 5168 (1,124,411) (561,638) (592,531) 2462 (539,396) (214,612) 7403 (343,430) (794,083) 6,7 (132,070) 460,970 1,2 800,213 710,725 3,8 128,232 430,384 76,778 47332,993 54,783 012010 2011 RM (99,077) - (99,077) - (233,333) - 134,256 - Company RM RM - - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 59 60 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 osprodnr hr scluae ydvdn osfrteya trbtbet riayeut odr fte the of holders equity ordinary to attributable year the for loss dividing by calculated is share ordinary per Loss 2 PROPERTY, PLANT 12. AND EQUIPMENT LOSS PER SHARE 11. Notes to The Financial Statements (Cont'd) * At 30 September 2011 At 30 September 2010 Net carrying amount At 30 September 2011 Written off Disposal Charge for the year (Note 6) At 30 September 2010 and Written off Diluted loss per share (sen) Disposed Basic loss per share (sen) Charge for the year (Note 6) At 1 October 2009 Weighted average number of ordinary shares in issue Accumulated depreciation Group of the Company (RM) At 30 September 2011 Written off Loss attributable to ordinary equity holders Disposal Additions Company by the weighted average number of ordinary shares in issue during the year. At 30 September 2010 and Written off Disposed Additions At 1 October 2009 Cost Group Other assets comprise office renovation and site office equipment. 1 October 2010 1 October 2010 Freehold 2,8)(156,384) (24,689) 469 5,8 37539 ,2,2 5829 6,206,891 538,229 1,722,220 3,765,369 156,384 24,689 adBidnsvhce n itnsast Total assets and fittings vehicles Buildings land MR MR MRM RM RM RM RM RM ------(24,501) - - 2,0 259171552141624,600,581 491,652 1,545,241 2,539,187 24,501 ------,4,8 8,4 2,4 1,558,182 224,345 186,049 1,147,788 - ,6,3 6,0 4,7 1,478,705 245,371 168,001 1,065,333 - ,6,2 ,6,6 5,9 4,688,184 459,393 1,463,268 2,765,523 - 17 (42,145) (127) - 3,0)(76,048) (33,700) - 9348,8 024250,504 70,204 80,986 99,314 - 27006 ,0,7 39194,589,700 389,189 1,500,475 2,700,036 - - 10897,6 988298,970 59,858 78,263 160,849 - ,1,1 ,4,1 8,3 6,246,366 683,738 1,649,317 3,913,311 - 438 (42,568) (4,308) - 4,8)(76,070) (43,783) - 9,3 9494,7 344,690 49,178 99,479 196,033 - 37539 ,6,7 6450 6,068,405 634,560 1,668,476 3,765,369 - - -

oo qimn *Other equipment Motor (59,570) - 6,5)(6,2)(250,281) (162,321) (63,459) - (63,284) - 6,0)(6,3)(407,608) (162,932) (63,603) - 313 5,6 332,406 259,263 73,143 - Office RM 01 2010 2011 5,1,0 253,317,000 253,317,000 ,3,3 3,958,248 2,031,938 0.80 0.80 Group (42,272) - (109,748) - (59,570) - (46,876) - (119,853) - (63,284) - 1.56 1.56 RM 3 LAND HELD FOR 13.PROPERTY DEVELOPMENT AND PROPERTY DEVELOPMENT COSTS referred to in Note 20. adhl o rprydvlpetadpoet eeomn ot r lde sscrt o orwnsa as borrowings for security as pledged are costsdevelopment property and developmentproperty for held Land Interest expense (Note 9) development costs incurred during the financial year is: Included in land held for property development and property Property development costs at 30 September At 30 September Reversal of completed projects Write down to net realisable value (Note 6) Recognised during the year (Note 5) At 1 October 2010/2009 Cumulative costs recognised in profit or loss Transfers to inventories Reversal of completed projects Transfer from land held for property development Development expenditure incurred during the year Development expenditure Freehold land At 1 October 2010/2009 Cumulative property development costs b Property (b) development costs At 30 September Transfer to property development costs Addition Development expenditure Freehold land At 1 October 2010/2009 Cost (a) Land held for property development Notes to The Financial Statements (Cont'd) 2,9,2 95,803,504 123,692,426 1,3,7 337,900,108 311,032,676 3,0,0 336,741,882 337,900,108 0,5,4 302,452,042 302,452,042 1,8,4)(56,401,975) (15,582,644) 4,4,0)(46,437,141) (40,846,803) 5,0,7)(14,247,920) (56,401,975) 8,6,3)(5,235,379) (81,666,134) (27,880,990) 9539467,290,451 79,503,994 166145,235,379 81,666,134 50668123,692,426 95,086,638 27,880,990 0396633,124,301 30,389,636 8803539,877,704 68,820,335 4820155,925,800 54,872,091 5480634,289,840 35,448,066 (5,210,280) ,8,4 3,746,766 8,381,141 ,1,5 1,158,226 1,013,558 012010 2011 012010 2011 RM RM (952,293) - Group Group RM RM - - - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 61 62 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 5 INVENTORIES 15. 4 INVESTMENT IN SUBSIDIARIES14. Notes to The Financial Statements (Cont'd) These comprise completed properties held for sale stated at cost. Subsidiaries of FASB : Focal Aims Sdn. Bhd. ("FASB") Subsidiaries of FAPSB : Focal Aims Properties Sdn. Bhd.("FAPSB") Focal Aims Land Sdn. Bhd. Name of Subsidiaries The subsidiaries, all of which were incorporated in Malaysia, are as follows : Provision for impairment losses Unquoted shares, at cost Focal Aims Resort (M) Sdn. Bhd. Focal Aims Development Sdn. Bhd. Focal Aims Realty Sdn. Bhd. 0%10 Dormant 100% 100% 0%10 Dormant 100% 100% 0%10 Dormant 100% 100% 0%10 Property investment and 100% 100% 0%10 Investment holding 100% 100% 0%10 Property development 100% 100% 012010 2011 neetHl Principal Activities Interest Held Equity 6,1,0 166,817,000 166,817,000 7,1,0 170,017,000 170,017,000 32000 (3,200,000) (3,200,000) development 01 2010 2011 RM Company RM 6 TRADE AND OTHER 16.RECEIVABLES a Trade (a) receivables Total loans and receivables Add: Cash and bank balances (Note: 18) Total trade and other receivables Total trade and other receivables Other receivables Deposits Less: Allowance for impairment Amount due from subsidiaries Other receivables Third parties Trade receivables Current records with the Group. None of these balances have been renegotiated during the financial year. Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good payment Receivables that are neither past due nor impaired More than 107 days past due not impaired 77 to 106 days past due not impaired 47 to 76 days past due not impaired 29 to 46 days past due not impaired 15 to 28 days past due not impaired 1 to 14 days past due not impaired Neither past due nor impaired The ageing analysis of the Group's trade receivables is as follows : Ageing analysis of trade receivables on a case-by-case basis. The Group's normal trade credit term ranges from 21 to 90 days. Other credit terms are assessed and approved Notes to The Financial Statements (Cont'd) 481201,6,7 6840055,002,041 56,844,000 13,069,076 14,891,280 12997776575,4,8 54,947,726 56,841,888 7,766,527 11,259,997 12997776575,4,8 54,947,726 56,841,888 7,766,527 11,259,997 055737,029,984 10,565,783 ,3,8 ,0,4 ,1 54,315 2,112 5,302,549 3,631,283 9,1 3,4 6818854,947,726 56,841,888 736,543 694,214 5,6 214,871 151,867 4,4 2,7 ,0 4,500 4,500 521,672 542,347 0121 012010 2011 2010 2011 RM Group - - - RM 6873854,943,226 56,837,388 - 19085 (4,290,988) (1,920,865) - 8782359,234,214 58,758,253 - 055737,029,984 10,565,783 ,8,1 5,245,630 9,288,715 ,6,9 281,089 2,363,390 ,9,2 1,931,163 2,494,327 ,1,4 544,498 2,516,641 ,7,6 1,784,354 1,277,068 1,2 944,428 517,222 7,9 1,049,862 773,694 2,4 494,590 623,441 01 2010 2011 RM RM Company - - Group RM RM - - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 63 64 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 8 CASH AND CASH EQUIVALENTS18. 7 OTHER CURRENT ASSETS 17. Notes to The Financial Statements (Cont'd) deposits with licensed banks were 2% and 79 days respectively. As at the end of the previous financial year, the weighted average effective interest rate and maturity of the Group's 1966 and therefore restricted from use in other operations. M,3,4)bigmne edprun oScin7 fteHuigDvlpr CnrladLcnig c RM3,233,949) being monies held pursuantSection to of the 7A Housing Developers (Control and Licensing) Act nlddi ahadbn aacso h ru r etitdbn aacsaonigt M,6,4 21 Included in cash and bank balances of the Group are restricted bank balances amounting to RM2,861,343 (2010 : Cash and cash equivalents Bank overdrafts (Note 20) Deposits with licensed banks Cash on hand and at banks property development costs Accrued billings in respect of Prepaid operating expenses b Amount due (b) from subsidiaries terms of repayment. h mutdefo usdaiswihaoefo dacs r neue,itrs-readhv ofxd The amount duefrom subsidiaries which arose from advances, are unsecured, interest-free and havefixed no stakeholder deposits and will be released upon transfer of land title. All the receivables are unsecured in nature. eotn aebtntipie.Teeicueaonso M,2,8 21:Nl lcdwt ayr s as lawyerswith placed RM4,222,880Nil) (2010: of amounts includeimpaired.These not but reportingdate h ru a rd eevbe mutn oR92875(00 M,4,3)ta r atdea h the at due receivablesRM9,288,715pasttradeRM5,245,630) are(2010:amountingto hasthat Group The Receivables that are past due but not impaired 63481 46861 ,1 54,315 2,112 (4,638,631) (6,344,831) 99614 (9,941,180) (9,976,114) ,3,8 ,0,4 ,1 54,315 2,112 5,302,549 3,631,283 ,3,8 ,2,0 ,1 54,315 2,112 3,725,409 3,631,283 ,8,2 307371,809 13,077,387 2,880,024 ,6,8 12,762,564 2,464,682 1,4 1,2 1,809 314,823 415,342 0121 012010 2011 2010 2011 0121 012010 2011 2010 2011 RM RM 1,577,140 - Group Group RM RM RM RM - - - Company Company RM RM 47 47 - - - 0 LOANS AND BORROWINGS20. 9 TRADE AND OTHER 19.PAYABLES More than 1 year and less than 5 years On demand or within one year The remaining maturities of the loans and borrowings as at 30 September 2011 are as follows : Total loans and borrowings Term loans Secured : Non-current Bank overdrafts Revolving credit Secured : Current The amount due to a subsidiary is unsecured, interest-free and has no fixed terms of repayment. days (2010 : 30 to 90 days). Trade payables are non-interest bearing and the normal trade credit terms granted to the Group range from 30 to 90 Total financial liabilities carried Add: Loans and borrowings (Note 20) Total trade and other payables Amount due to a subsidiary Other payables Payroll liability Deposit received Accruals Other payables Accruals Trade payables Trade payables Current at amortised cost Notes to The Financial Statements (Cont'd) 598729,0,1 ,9,3 4,190,292 4,190,133 96,108,616 75,988,752 4480483,239,739 64,468,064 150681,6,7 ,9,3 4,190,292 4,190,133 12,868,877 11,520,688 ,9,1 ,4,6 ,9,3 4,190,292 4,190,133 1,647,366 1,890,011 ,3,7 11,221,511 9,630,677 ,2,0 392,007 2,828,101 ,0,7 08954 - - - 10,829,504 6,802,576 0,0 7,2 69813,286 16,908 274,323 400,308 4,9 216,540 248,490 1,3 270,073 413,130 2,8 8,3 9,2 295,706 299,925 886,430 828,083 0121 012010 2011 2010 2011 RM Group - RM ,7,0 3,881,300 3,873,300 - 4480483,239,739 64,468,064 8309353,298,559 38,340,993 6170129,941,180 26,127,071 4480483,239,739 64,468,064 8309353,298,559 38,340,993 6170129,941,180 26,127,071 6109720,000,000 16,150,957 ,7,1 9,941,180 9,976,114 012010 2011 012010 2011 RM RM RM Company Group Group - - - - - RM RM RM - - - - - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 65 66 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 2 SHARE CAPITAL 22. 1 OTHER CURRENT LIABILITIES21. Notes to The Financial Statements (Cont'd) residual assets. oeprsaea eea etnso h opn.Alodnr hrsrn qal ihrgr oteCmays vote per share atgeneral meetings of the Company. All ordinary shares rank equally with regard tothe Company's The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one Issued and fully paid Authorised property development cost Progress billings in respect of Term loans Revolving credit Bank overdrafts The weighted average effective interest rates for borrowings at the reporting date were as follows : instalment will commence in December 2012. The revolving credit is repayable on demand. rwon r pn eep o rdmto sm, hcee i erir I n rdmto sm ae ad te is first the paid, are sums redemption no If earlier. is whichever sums, redemption of receipt upon or drawdown h emlasaerpybeb urel ntlet vrapro o xedn er rmtedt ffrt first of date the fromyears exceeding5 not period a quarterlyinstalmentsoverrepayable by are loans term The i)Corporate guarantee by the Company. iii) i eetr b wy f ie ad laig hre oe al rsn ad uue ses f eti sbiir subsidiary certain of assets future and present all over charges floating and fixed of way by Debenture ii) )Legal charge over all the land held for development of certain subsidiary i) companies; The bank borrowings are secured by : companies; and 5,1,0 5,1,0 5,1,0 253,317,000 253,317,000 253,317,000 253,317,000 0,0,0 0,0,0 0,0,0 300,000,000 300,000,000 300,000,000 300,000,000 ,6,8 3,212,336 5,369,486 Number of Shares 0121 012010 2011 2010 2011 0121 012010 2011 2010 2011 of RM1 Each RM Group RM 012010 2011 7.18 7.18 8.85 RM RM Company % Amount - 6.44 6.47 8.55 RM RM % - 5 DEFERRED TAXATION 25. 4 NON-CONTROLLING INTERESTS 24. 3 RESERVES 23. Unabsorbed capital allowances Unutilised tax losses future taxable profits against which these unutilised tax losses and unabsorbed capital allowances can be utilised. eerdtxast aentbe eonsdi epc ftefloigiesa h ru sntal ofrcs Deferred tax assets have not been recognised in respect of the following items as the Group is not able to forecast the Company relates to dividends receivable from a subsidiary. The deferred tax liability of the Group relates to land and development expenditure whereas the deferred tax liability of At 30 September Recognised in profit or loss (Note 10) At 1 October 2010/2009 entitled to further participate in the surplus assets and profits of the subsidiary. capital on all classes of ordinary shares of the subsidiary. Other than the above, holders of preference shares are not roiyt l lse fodnr hrso h usdaybttepeimwl nyb adatrterpyeto priorityclassesall to of ordinaryshares subsidiarythepremiumthebut of willafterbe paid only repaymentthe of The holders of preference shares are not entitled to a dividend. The repayment of capital on preference shares rank in Non-controlling interests of RM2,500,000 represent preference shares of a subsidiary not held by the Group. Share premium of the Group and of the Company represents the premium arising from the issue of shares. The movements in the reserves are shown in the statements of changes in equity. Retained earnings/(Accumulated losses) Distributable Share premium Non-distributable Notes to The Financial Statements (Cont'd) 0039860,233,000 60,003,988 0230060,684,127 60,233,000 134854,9,0 3,0,6)(35,451,345) (33,607,465) 43,396,803 41,364,865 2902 (451,127) (229,012) 2332,4 23322,343 22,343 22,343 22,343 0121 012010 2011 2010 2011 0121 012010 2011 2010 2011 RM RM Group Group RM RM 3300013,291,000 13,370,000 4,0 354,000 544,000 012010 2011 RM RM RM Company Company - (233,333) - 233,333 - Group RM RM RM - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 67 68 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 8 FINANCIAL INSTRUMENTS 28. 7 RELATED PARTY DISCLOSURES27. 6 CAPITAL COMMITMENTS 26. Notes to The Financial Statements (Cont'd) a Credit risk (a) financial risks and the objectives, policies and processes for the management of these risks. h floig etospoie eal rgrigte ru’ ad opn’ epsr t h aoemnind above-mentioned the to exposure Company’s and Group’s the regarding details provide sections following The undertaken. It is, and has been throughout the current and previous financial year, the Group’s policy that no derivatives shall be management process. xctdb h aaeet h ui omte rvdsidpnetoesgtt h fetvns fters executed by the management. The audit committee provides independent oversight to the effectiveness of the risk h or fDrcosrvesadare oiisadpoeue o h aaeeto hs ik,wihae DirectorsBoardof Thereviewsagrees procedurespolicies and andaremanagementrisks,whichthese the of for instruments. The key financial risks include credit risk, liquidity risk and interest rate risk. h ru n h opn r xoe ofnnilrssaiigfo hi prtosadteueo iaca financialof use the operationsand their from arising risksfinancial to exposedare Company the and Group The Directors' remuneration Included in the total remuneration of key management personnel are: Defined contribution plan Post-employment benefits: Short term employee benefits The remuneration of directors and other members of key management during the financial year is as follows: Compensation of key management personnel Acquisition of property, plant and equipment Approved but not contracted for : credit risk by dealing exclusively with high credit rating counterparties. receivables. For other financial assets (including cash and bank balances), the Group and the Company minimise t biain.TeGopsadteCmaysepsr ocei ikaie rmrl rmtaeadohr Company’sotherobligations.primarilyarisescreditexposuretheGroup’sandits riskfromtrade and The to Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on ,8,5 2,218,894 2,185,453 ,2,1 2,925,249 2,921,216 ,1,1 2,620,050 2,614,613 ,5,0 2,078,000 1,156,000 0,0 305,199 306,603 012010 2011 012010 2011 RM RM Group Group RM RM b Liquidity risk (b) Total undiscounted financial liabilities granted to subsidiaries institutions for banking facilities Corporate guarantee given to financial Trade and other payables Financial liabilities: Company Total undiscounted financial liabilities Loans and borrowings Trade and other payables Financial liabilities: Group 2011 date based on contractual undiscounted repayment obligations. h al eo umrsstemtrt rfl fteGopsadteCmayslaiiisa h eotn tableThebelowsummarises maturitythe profile Group'stheof Company'sthe and liabilities reportingtheat Analysis of financial instruments by remaining contractual maturities reasonable level to its overall debt position. ovril netet ome t okn aia eurmnsadmiti vial akn aiiisa convertible investments to meet its working capital requirements and maintain available banking facilities at a maturities of financial assets and liabilities. The Group’s objective is to maintain sufficient levels of cash or cash u t sotg o fns Te ru’ epsr t lqiiy ik rss rmrl fo msace o te the of mismatches from primarily arises risk liquidity to exposure Group’s The funds. of shortage to due iudt iki h ikta h ru rteCmaywl none ifclyi etn iaca biain Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations Information regarding financial assets that are past due but not impaired is disclosed in Note 16. Financial assets that are past due but not impaired Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note 16. Financial assets that are neither past due nor impaired fair values of these corporate guarantees are not material. h neetrtsdfeeta a hs urnesntbe vial.TeDrcoshv sesdta h interestthe ratesdifferential these had guarantees been not available.DirectorsThe assessed have the that The value of corporate guarantees provided by the Company to its subsidiaries are determined by reference to totalling RM64,468,064 (2010 : RM83,239,739) granted to the subsidiaries by licensed financial institutions. At the reporting date, the Company provided corporate guarantees for subsidiaries in respect of credit facilities carrying amount of each class of financial assets recognised in the statement of financial position. tterprigdt,teGopsadCmaysmxmmepsr ocei iki ersne yte the representedby is risk credit to exposuremaximum Company's and Group’s the date,reporting the At Exposure to credit risk The Group does not have any significant exposure to any individual customer. Notes to The Financial Statements (Cont'd) On demand 68,658,197 64,468,064 767793,4,9 75,988,752 38,340,993 37,647,759 617013,4,9 64,468,064 38,340,993 26,127,071 11,520,688 4,190,133 rwti One to or within n erfv er Total five years one year RM RM 68,658,197 - 64,468,064 - 4,190,133 - 11,520,688 - RM Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 69 70 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 1 CAPITAL MANAGEMENT 31. 0 SEGMENT INFORMATION 30. 9 FAIR VALUE OF FINANCIAL INSTRUMENTS 29. Notes to The Financial Statements (Cont'd) comprises the equity attributable to equity holders of the Company. opie on n orwns rd n te aals escs n akblne hra oa aia capital total whereasbalances bank and cash less payables, other and tradeborrowings, and loans comprises h ru oioscptluigagaigrto hc sntdb iie yttlcptlpu e et e et The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. Net debt ended 30 September 2011 and 30 September 2010. hrhleso su e hrs ocagswr aei h betvs oiiso rcse uigteyas shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To to support its business and maximise shareholder value. The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order and these are carried out entirely in Malaysia. osgetlrprigi rsne steGopsoeain rmrl eaet rprydvlpetatvte No segmental reporting ispresentedthe as Group's operations primarily relateproperty to development activities interest rates on or near the reporting date. fair values, either due to their short-term nature or that they are floating rate instruments that are re-priced to market The carrying amounts of the Group's and Company's financial assets and liabilities are reasonable approximations of c Interest rate risk (c) points for interest rate sensitivity analysis is based on the currently observable market environment. result of lower/higher interest expense on floating rate loans and borrowings. The assumed movement in basis constant, the Group’s loss net of tax would have been approximately RM48,000 lower/higher, arising mainly as a tterprigdt,i neetrtshdbe 0bsspit oe/ihr ihalohrvralshl held variables other lower/higher,all pointswith basis 10 been had ratesinterest if date,reporting the At Sensitivity analysis for interest rate risk The Group’s exposure to interest rate risk arises primarily from floating rate borrowings. fluctuate because of changes in market interest rates. neetrt iki h ikta h arvleo uuecs lw fteGopsfnnilisrmnswl instrumentswillfinancialGroup’s the of flows cashfuture or value fair the that risk the is risk Interestrate 3 UPEETR IFRAIN BEKON F EAND RFT IT RAIE AD AND REALISED INTO PROFITS RETAINED OF BREAKDOWN - INFORMATION SUPPLEMENTARY 33. 2 AUTHORISATION OF FINANCIAL STATEMENTS32. FOR ISSUE The Company is mainly financed by shareholders' funds. Gearing ratio Capital and net debt representing total capital Equity attributable to the owners of the Company, Net debt Less: Cash and bank balances Other payables Trade payables Borrowings Group as per financial statements Retain earnings/(accumulated losses) Less: Consolidation adjustments - Unrealised - Realised and its subsidiaries Total retained earnings /(accumulated losses) of the Campany Requirements, as issued by the Malaysian Institute of Accountants. nelsdPoiso ossi h otx fDslsr usatt us aasaScrte ehdLsig ListingSecuritiesBerhadMalaysia Bursa DisclosurePursuantto of Context the in LossesUnrealisedProfits or ac 00adpeae nacrac ihGiac nSeilMte o ,Dtriaino elsdad DeterminationRealisedand 1, of No.MatterSpecial accordanceprepared Guidanceon andwithin 2010 March unrealised profits is presented in accordance with the directive issued by Bursa Malaysia Securities Berhad dated 25 The breakdown of the retained profits of the Group and of the Company as at 30 September 2011 into realised and UNREALISED resolution of the directors on 25 November 2011. h iaca ttmnsfrteya ne 0Spebr21 eeatoie o su nacrac iha a accordancewith in issue authorisedforwere September2011 30 ended year the financialstatementsfor The Notes to The Financial Statements (Cont'd) Note 18 19 19 20 6,6,7 387,542,213 367,061,677 9,0,0 296,736,146 294,704,208 13485(33,607,465) 41,364,865 18,474,553 28032(33,607,465) 22,890,312 28032(33,607,465) 22,890,312 2374990,806,067 72,357,469 4480483,239,739 64,468,064 36123 (5,302,549) (3,631,283) ,9,1 1,647,366 1,890,011 ,3,7 11,221,511 9,630,677 ru Company Group 012011 2011 012010 2011 20% RM RM - 23% RM RM - - Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 71 72 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 Plentong, Daerah Johor Bahru was acquired in the year 1994. The freehold land held under Lots 1041, 1832, 1833, 1834, 2516, 2517, 2934, 6006, 6007, 6872 and 6873 at Mukim at 6873 and 6872 6007, 6006, 2934, 2517, 2516, 1834, 1833, 1832, 1041,Lots under held freeholdland The Total Daerah Johor Bahru Mukim Plentong, 6018, 6872 and 6873, 2934, 6006, 6007, 1834, 2516, 2517, os14,13,13,1038 ce reodVacant land Freehold 1,053.80 acres Lots 1041, 1832, 1833,

Location Particulars of Properties adAe/Tnr xsigUe Net Book Value as at Existing Use Tenure Land Area/ Build Area development industrial commercial and resort, residential, Proposed golf 30 September 2011 311,032,676 311,032,676 (RM) Grand Total 5% and above of issued shares 100,001 - less than 5% of issued shares 10,001 - 100,000 1,001 - 10,000 100 - 1,000 Less than 100 Size of Shareholdings DISTRIBUTION OF SHAREHOLDERS AS AT 30 DECEMBER 2011 Voting Rights Class of Share Issued and fully paid up Authorised SHARE CAPITAL AS AT 30 DECEMBER 2011 Statistics on Shareholdings -One vote per share -Ordinary shares of RM1.00 each -RM253,317,000-00 -RM300,000,000-00 No. of Shares 5,1,0 100.00 253,317,000 0,6,4 41.91 106,163,446 1,6,1 46.13 116,861,413 695676.71 16,995,637 184774.69 11,884,787 ,1,8 0.56 1,411,185 3 0.00 532 No. of Holders % 4,979 2,872 1,429 569 93 11 5 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 73 74 Statistics on Shareholdings (Cont'd)

THIRTY (30) LARGEST SECURITIES ACCOUNT HOLDERS AS AT 30 DECEMBER 2011

No. Name No. of Shares % 1. AMMB Nominees (Tempatan) Sdn Bhd AmBank (M) Bhd for E. Seng Kiw @ Yee Oy Chong 26,000,000 10.26 2. Pang Tin @ Pang Yon Tin 25,754,088 10.17 3. Hassan bin Che Abas 19,721,216 7.79 4. Phang Piow @ Pang Choo Ing 17,388,142 6.86 5. Mohd Razali bin Abdul Rahman 17,300,000 6.83 6. E. Seng Kiw @ Yee Oy Chong 10,270,444 4.05 7. Rosman bin Abdullah 10,064,000 3.97 8. AMMB Nominees (Tempatan) Sdn Bhd AmBank (M) Bhd for Yee Yok Sen 9,100,000 3.59 9. Pang Khong Nam 8,666,946 3.42 10. Nik Mahmood bin Nik Hassan 8,084,253 3.19 11. Lee Ban Hin @ Michael Lee Ban Hin 7,416,000 2.93 12. Lim Li Li 7,000,000 2.76 13. Abu Bakar bin Mohd Nor 5,000,000 1.97 14. Yee Gee Min 3,960,448 1.56 15. Yee Chun Syan 2,795,043 1.10 16. ABB Nominee (Tempatan) Sdn Bhd Pledged Securities Account for Yee Chun Syan 2,500,000 0.99 17. William Pang 2,106,667 0.83 18. Yuningsih binti Abdul Wahid 2,000,000 0.79 19. Yee Chang Lin 1,668,170 0.66 20. Othman bin Hashim 1,550,000 0.61 21. Wang Ah Yu 1,540,667 0.61 22. Mohd Razali bin Abdul Rahman 1,296,216 0.51 23. S'ng Hooi Seah 1,194,200 0.47 24. Mayban Securities Nominees (Asing) Sdn Bhd Kim Eng Securities Pte Ltd for Chumpon Chantharakulpongsa 1,193,300 0.47 25. Huan Chuan Sen @ Ah Loy 1,103,000 0.44 26. Wan Adleena binti Wan Mustapha 1,100,000 0.43 27. Wan Akmal bin Wan Mustapha 1,050,000 0.41 28. Wan Asnita binti Wan Mustapha 1,050,000 0.41 29. Wan Farah Alifa binti Wan Mustapha 1,050,000 0.41 30. Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Yeo Guik Hiang 1,000,000 0.39 Focal Aims Holdings Berhad . Annual Report 2011 Focal

Focal A i m s Statistics on Shareholdings (Cont'd) 75

SUBSTANTIAL SHAREHOLDERS AS AT 30 DECEMBER 2011

No. of Shares Held Substantial Shareholders Direct % Indirect %

Tan Sri Datuk Mohd Razali bin Abdul Rahman 18,596,216 7.34 3,336*1 - * 1 Datuk Hassan bin Che Abas 19,721,216 7.79 3,336*1 - * 1 E. Seng Kiw @ Yee Oy Chong 36,270,444 14.32 6,517,387*2 2.57 Pang Tin @ Pang Yon Tin 25,754,088 10.17 4,390,334*2 1.73 Phang Piow @ Pang Choo Ing 17,388,142 6.86 10,774,280*2 4.25

*1 Deemed interested by virtue of his interests in Eranas Construction Sdn Bhd pursuant to Section 6A of the Companies Act, 1965, of which the percentage is less than 0.01%.

*2 Deemed interested by virtue of the shareholdings held by his spouse and children. Focal Aims Holdings Berhad . Annual Report 2011 Focal

Focal A i m s 76 Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 4Deemed interested by virtue of the shareholdings held by his *4 spouse. 3Deemed interested by virtue of his interest in Watan Makmur *3 Sdn Bhd pursuant to Section 6A of the Companies Act, 1965. 2Deemed interested by virtue of the shareholdings held by his *2 spouse and children. * Datuk Che Mokhtar bin Che Ali Tee Boon Hin Woon See Chin Wan Mustapha bin Wan Ismail Phang Piow @ Pang Choo Ing Pang Tin @ Pang Yon Tin Yee Yok Sen E. Seng Kiw @ Yee Oy Chong Tan Sri Datuk Mohd. Razali bin Abdul Rahman Name of Directors DIRECTORS' SHAREHOLDINGS AS AT 30 DECEMBER 2011 Statistics on Shareholdings (Cont'd) Deemed interested by virtue of his interests in Eranas Construction 1 Sdn Bhd pursuant to Section 6A of the Companies Act, 1965, of which the percentage is less than 0.01%. 17,388,142 574081.743034 1.73 4,390,334* 10.17 25,754,088 620441.265737 2.57 6,517,387* 14.32 36,270,444 18,596,216 1,135,833 9,188,888 35,000 20,000 Direct - No. of Shares Held 0.01 .13,0*0.01 35,000* 0.01 .563330 2.49 6,313,390* 0.45 .61,7,8*4.25 10,774,280* 6.86 .32888 0.11 268,888* 3.63 .4336*-* * 3,336 7.34 niet% Indirect % - - - 2&3 4 2 2 4 2 1 1 - - .The instrument appointing a proxy must be deposited at 5. the Company’s Registered Office, Suite 338, 3rd Floor, Johor Tower, Jalan Gereja, 80100 Johor .Where a member of the Company is an exempt authorised nominee which holds ordinary shares 4. in the Company for multiple beneficial owners in one .In the case of a corporate member, the instrument3. appointing a proxy must be either under its common seal or under the hand of its officer or attorney duly .A member entitled to attend and vote at the Meeting is entitled to 2. appoint more than one proxy to attend and vote in his stead. A proxy may but does not at any adjournment thereof for/against the resolution(s) to be proposed thereat. Johor Tower, Jalan Gereja, 80100 Johor Bahru, Johor Darul Ta'zim on .In respect of deposited securities, only members whose names appear in the Record 1. of Depositors on 20 February 2012 (“General Meeting Record of Notes:- Signature As witness my/our hand(s) this day of , 2012 EighthAnnual General MeetingCompany,the of theheldat be to the space above, the proxy will vote or abstain from voting as he/she thinks fit. or failing him/her, the Chairman of my/ourthe Meeting proxy as to vote for me/us and on my/our behalf at the Thirty- of or failing him/her, of Please indicate your vote by marking (X) in the respective box of each resolution. Unless voting instructions are indicated in being a Member/Members of FOCAL AIMS HOLDINGS BERHAD, hereby appoint of (full address) I/We, NRIC No. .Ordinary Resolution 8. .To re-appoint Messrs. Ernst &Young as Auditors of the Company until the conclusion of the 7. .Tore-elect Tee Boon Hin, who shall retire inaccordance with Article 80 ofthe Company’s 6. .T eeetDtkCeMktrbnCeAi h hl eiei codnewt ril 0o Tore-elect Datuk Che Mokhtar bin Che Ali, who shall retire inaccordance with Article 80 of 5. .T eeetTnSiDtkMh aaibnAdlRha,wosalrtr nacrac ih Tore-elect Tan Sri Datuk Mohd Razali bin Abdul Rahman, who shall retire inaccordance with 4. .T eeetE egKw@YeO hn,wosalrtr usatt eto 2()o h Tore-elect E.Seng Kiw @ Yee Oy Chong, who shall retire pursuant to Section 129(6) of the 3. .Toapprove the Directors’ Fees for the financial year ended 30 September 2011. 2. .T eev h ietr’Rpr n uie iaca ttmnsfrtefnnilya ne To receive the Directors’ Report and Audited Financial Statements for the financial year ended 1. o Resolutions No. Bahru, Johor Darul Ta’zim not less than 48 hours before the time for holding the Meeting or any adjournment thereof. omnibus account it holds. securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each authorised. A proxy appointed to attend and vote at the Meeting shall have the same rights as the member to speak at the Meeting. appoints more than one proxy, the appointments shall be invalid unless he specifies the proportions of his shareholdings to be represented by each proxy. need to be a member of the Company and the provisions of Section 149 (1)(b) of the Companies Act, 1965 need not be complied with. Where a member Depositors”) shall be eligible to attend the Meeting. - Authority toissue and allot shares. Special Business:- next Annual General Meeting and toauthorise the Directors to fix their remuneration. Articles of Association. the Company’s Articles of Association. Article 80of the Company’s Articles of Association. Companies Act, 1965.

30 September 2011 together with the Auditors’ Report thereon. Ordinary Business:- MerantiHall, Tropical InnJohor Bahru,4thFloor, Tuesday, 28 February 2012 Forms of Proxy No. of Shares held at 11.00 a.m. o Against For

and Focal s m i A Focal Aims Holdings Berhad . Annual Report 2011 77 STAMP

The Company Secretary

FOCAL AIMS HOLDINGS BERHAD (Co. No. 17777-V)

Suite 338, 3rd. Floor, Johor Tower, Jalan Gereja 80100 Johor Bahru Johor Darul Ta'zim