Annual Report 2012
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ANNUAL REPORT 2012 (545961-X) (Wholly owned by International Islamic University Malaysia) Contents • Core Values & Vision, Mission 3 • Notice for Annual General Meeting 4 • Corporate Information 5 • Corporate Structure 6 • 5 Years Financial Highlights 7 • Chairman’s Statement 8 - 9 • Director’s Profile 10 - 14 • Corporate Report 15 - 29 • Financial Statements 31 - 73 • Corporate Directory 75 - 80 2 • Annual Report 2012 • Core Values Courage Discipline Trustworthy Loyalty Diligence Vision & Mission Vision To be the leading University-Based Company Internationally. Mission • We pledge to offer excellent services and valuable to our customers by our strategic resources and expert areas. While venturing into hi-tech areas, we continue to uphold our Core Values and business ethics. • As the business arm of the University, we are committed to promote and commercialize our expertise and products. While doing this, we will simultaneously inject and inculcate the culture of entrepreneurship in the community. • In aiming for profitable returns for the Company, we also strive to meet our financial obligations to the University while at the same time, being attentive to our employee’s welfare and development. • Annual Report 2012 • 3 Notice for Annual General Meeting IIUM HOLDINGS SENDIRIAN BERHAD (Company No. : 545961-X) Incorporated in Malaysia NOTICE IS HEREBY GIVEN that the Twelfth Annual General Meeting of the Company which will be deemed to be held on Friday, 28th day of June, 2013 for the following purposes:- AGENDA 1. To receive the Audited Accounts for the year ended 31st December 2012 together with the Directors’ and Auditors’ Reports thereon. (Resolution 1) 2. To appoint YBhg. Tan Sri Dato’ Seri Utama Dr. Rais Yatim pursuant to Section 129(6) of the Companies Act, 1965 to hold office until the conclusion of the next Annual General Meeting. (Resolution 2) 3. To re-elect the following Directors who retire in accordance to Article 63 of the Company’s Articles of Association and being eligible offered themselves for re-election : i. YBhg. Prof. Dr. Ahmad Faris bin Ismail (Resolution 3) ii. YBhg. Prof. Dr. Nik Ahmad Kamal bin Nik Mahmod (Resolution 4) 4. To re-elect the following Directors who retire in accordance to Article 68 of the Company’s Articles of Association and being eligible offered themselves for re-election : i. YBhg. Dato’ Jamaludin bin Hassan (Resolution 5) ii. YBhg. Datuk Khalilur Rahman bin Ebrahim (Resolution 6) 5. To re-appoint Messrs. Ernst & Young (AF: 0039) as the Auditors of the Company and to authorize the Board to fix their remuneration. (Resolution 7) 6. To transact any other business of which due notice shall be given in accordance with the Companies Act, 1965. BY ORDER OF THE BOARD INONG PUTRI BINTI ABDULLAH Company Secretary Kuala Lumpur Dated this 12th day of June, 2013 NOTE: The instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of that power or authority shall be deposited at the registered office of the company or at such other place within Malaysia as is specified for the purpose in the notice convening the meeting. Not less than forthy-eight hours before the time for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote, or, in the case of a poll, not less than twenty-four hours before the time appointed for the taking of the poll, and in default the instrument of proxy shall not be treated as valid. 4 • Annual Report 2012 • Corporate Information Chairman Board Committees Tan Sri Mohd Sidek Hassan Audit Committee Deputy Chairman Prof. Dr. Nik Ahmad Kamal Nik Mahmod - Chairman Tan Sri Abdul Aziz Abdul Rahman Prof. Dr. Nik Nazli Nik Ahmad - Member Board of Directors Prof. Dato’ Sri Dr. Zaleha Kamaruddin Prof. Dr. Najibah Mohd Zain - Member Prof. Dato’ Dr. Md. Tahir Md. Azhar Prof. Dr. Ahmad Faris Ismail Remunerations & Nomination Committee Prof. Dr. Nik Ahmad Kamal Nik Mahmod Tan Sri Abdul Aziz Abdul Rahman - Chairman Dato’ Hj. Ahmad Zailan Shaari Dato’ Hj. Wan Mohd Hilmi Wan Kamal Prof. Dato’ Dr. Md. Tahir Md. Azhar - Member Registered Office Dato’ Hj. Wan Mohd Hilmi Wan Kamal - Member Level 3, Rectory International Islamic University Malaysia Remedial, Grievances & Disciplinary Committee Jalan Gombak, 53100 Kuala Lumpur Prof. Dr. Nik Ahmad Kamal Nik Mahmod - Chairman Tel: (603) 6196 4331 Fax: (603) 6196 4332 Dato’ Hj. Ahmad Zailan Shaari - Member Principal Banker Dato’ Hj. Wan Mohd Hilmi Wan Kamal - Member Bank Islam (M) Berhad Management Team Company Secretary Inong Putri Datuk Abdullah Tuan Hj Naharudin Ali - Group CEO (LS 006938) Assoc. Prof. Dr. Zuhairah Ariff Abd. Ghadas - Group Legal Advisor Auditors Messrs Ernst & Young Puan Siti Thuraiya Ab Rahman - Group GM, HR (AF 0039) Puan Naaimah Ahmad Radzi - Group Internal Auditor Puan Inong Putri Datuk Abdullah - Group Company Secretary • Annual Report 2012 • 5 Corporate Structure EDUCATION SECTOR IIUM Centre for Continuing Education Sdn. Bhd. IIUM Higher Education Sdn. Bhd. IIUM Lower Education Sdn. Bhd. IIUM Montessori Sdn. Bhd. IIUM Educare Sdn. Bhd. CONSULTANCIES & SERVICES IIUM Entrepreneurship & Consultancies Sdn. Bhd. IIUM Advanced Technologies Sdn. Bhd. IIUM Corporate Management Sdn. Bhd. IIUM Shariah Advisory Services Sdn. Bhd. IIUM International Sdn. Bhd. HEALTHCARE & OTHERS IIUM Medical Specialist Centre Sdn. Bhd. IKOP Sdn. Bhd. IIUM Properties Sdn. Bhd. Daya Bersih Sdn. Bhd. 6 • Annual Report 2012 • 5 Years Financial Highlights IIUM Holdings Group 5 Year Financial Highlights 2008 2009 2010 2011 2012 Actual Actual Actual Restated Audited Turnover (RM'000) 94,810 97,590 103,357 70,581 91,575 Operating Profit (RM'000) 5,703 (2,647) (817) 8,817 8,503 Profit Before Tax (RM'000) 5,198 (3,618) (2,012) 6,526 7,091 Profit After Tax (RM'000) 3,650 (5,061) (2,509) 5,272 5,580 Total Shareholder Fund (RM'000) 5,277 216 107 2,047 7,466 No. of Shares Issued ('000) 2,600 2,600 5,000 5,000 5,000 Earning Per Share (RM) 1.40 (1.95) (0.50) 1.05 1.12 NTA per share (RM) 2.0 0.1 0.02 0.41 1.49 RM’Million TURNOVER RM’Million PROFIT BEFORE TAX 150 10 6.5 7.1 94.8 97.6 103.4 91.6 5.2 100 5 70.6 50 0 (2.0) 0 (5) (3.6) 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 TOTAL SHARE HOLDERS FUNDS NET ASSET PER SHARE RM’Million RM 150 150 7.5 100 2.03 5.3 100 50 1.49 50 50 2.0 50 0.41 0.2 0.1 0.08 0.02 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 • Annual Report 2012 • 7 Chairman’s Statement On behalf of the Board of Directors, I am pleased to present the Annual Report and Audited Financial Statements of Performance of IIUM Holdings Group for the year ended 31st December 2012. For the year under review, YBhg Dato’ Hj. Wan Mohd Hilmi Bin Wan Kamal and YBhg Dato’ Hj Ahmad Zailan Bin Sha’ari were appointed Directors on 26th April 2012. From Good to Great Having turned around to profitability in 2011, the Group embarked on a process of consolidation and restructuring of its businesses to lay solid foundation of financial strength for a sustainable long-term growth. A five-year road map being developed to synchronize with its shareholder’s expectations will undoubtedly be the launching pad for the Group to transform itself from Good to Great. The strategies and action plans implemented thus far have proven to be successful in ensuring that the Group maintain its raison dëtre to generate profits and pay dividends to fund the operating expenses of the parent company, the International Islamic University of Malaysia (IIUM). Financial Performance The Group improved on its performance for the year with a higher Profit Before Tax of RM7.1 Million as compared with only RM6.5 Million for 2011. The excellent performance was achieved on the back of a Group turnover of RM91.6 Million. The Group also recorded its highest ever Profit After Tax of RM5.6 Million and this will go a long way towards strengthening the shareholders’ funds for future growth and expansion. 8 • Annual Report 2012 • This much improved performance was a result of The Group will undergo further restructuring, and improvements in almost every business sector. The bulk subsidiaries with limited or no sustainability growth of the profits were contributed by facilities management prospects will be divested. Management buy-out will be and property services as well as the International Islamic the preferred route to ensure continuity of employment Schools and Setiabudi Schools. The overall profits would for the affected staff. Existing operations are expected have been higher if not for losses incurred by consultancies to improve further but potential write-offs for the divested business sector. companies in the books of the holding company may affect overall profitability. Human Resource Acknowledgement The issues relating to shortage of manpower affected the Group substantially with regards to delivery and quality of On behalf of the Board of Directors of IIUM Holdings services as some of its operations are labour intensive. Group, I would like to congratulate and commend the Measures to introduce mechanization in the processes Management and employees for their hard work and have, to a certain extent, lessened the impact of labour commitment displayed in all tasks and responsibilities shortage. during the year to achieve the sterling performance. Their professionalism and dedication are vital for the For a primarily service-based business like ours, the sustainability of the Group in the pursuit of greatness.