annual report 2007 seizing today, forging tomorrow Company No: 66538-K Our Vision: To be a leader in the field of engineering, construction, property development and management known for its innovation and excellence Our Mission: To provide excellent quality products and services that exceed customers’ expectations; To ensure shareholders receive an equitable return on their investments; To provide employees with a safe and healthy working environment as well as opportunities for career advancement through systematic training; To create wealth and improve the quality of life for the betterment of the communities we operate in; To play a significant role towards achieving the nation’s social and economic objectives; and To contribute our resources for the well-being of society and the environment. Cover Rationale TheThe aaward of the Abu Dhabi F1 Motor Racing Circuit contract is a stamstampp of recognition of WCT’s capability and reputation as a worlworld-classd contractor. TThehe Paradigm, the Group’s first major high-end integrated comcommercialm development project, represents the Group’s strategic ooperationalpera shift up the value chain from township development to hihigh-endgh-e commercial property development. LLocatedocat in Petaling Jaya, The Paradigm is a luxurious convergence of BuBusiness,s Retail, Dining & Entertainment that offers 1.4 million sq ft ooff oofficeff space in four exquisitely designed office towers and a spacispacious shopping mall with 700,000 sq ft of dynamic retail space. 20-24 Managing Director’s Letter To Shareholders Contents 25 Management Committee 26 Senior Management - Engineering & Construction Division 1 Milestones 27 Senior Management - Property Development Division 2 Corporate Profi le 28-29 Corporate Social Responsibility Statement 3 Awards & Achievements 30-36 Statement on Corporate Governance 4-5 Corporate Structure 37-39 Other Disclosures 6-7 Corporate Calendar 40-41 Statement on Internal Control 8 Financial Highlights 42-46 Audit Committee Report 9 Historical Share Price Performance 47-153 Financial Report 10 Corporate Information 154-157 List of Properties 11 Board of Directors 158-163 Analysis of Shareholdings as at 31 March 2008 12-15 Board of Directors’ Profi le 164-167 Notice of Twenty-Seventh Annual General Meeting 16-19 Chairman’s Statement Form of Proxy 2002 • MCIEA – Builder of the Year Award • Forged strategic partnership with Cebarco Bahrain SPC, Milestones Kingdom of Bahrain • Achieved accumulated property sales of RM1.0 billion 1981 • Company was founded as WCT Earthworks and Building 2003 Contractors Sdn Bhd under the Companies Act, 1965, Malaysia • Achieved ISO 9001: 2000 Certifi cation 1993 2004 • Successfully completed first major infrastructure project – • Successfully completed first overseas project - Tada-Nellore Selangor Turf Club, Sungai Besi, Malaysia Highway, West Bengal, India • Successfully completed fi rst Middle East project - Bahrain 1995 International Circuit - contract value of RM586 million within a • Listed and quoted on the Second Board of Bursa Malaysia record time of 16 months Securities Berhad as WCT Engineering Berhad • MCIEA - International Achievement Award (Bahrain International Circuit) 1996 • Listing and quotation of property division, WCT Land Berhad on • Ventured into property development the Main Board of Bursa Malaysia Securities Berhad • Successfully completed bulk earthworks of the Kuala Lumpur International Airport (KLIA) project (more than 50 million cubic 2005 metres of earth was excavated) • Industry Excellence Award - Export Excellence Award 2004 - Construction Services Sector 1997 • Achieved accumulated property sales of RM2.0 Billion • First property sales launch at the integrated township of Bandar • Achieved OHSAS 18001: 1999 Certifi cation Bukit Tinggi, Klang, Malaysia 2006 1998 • Silver Jubilee - 25th Anniversary • Successfully completed the Sepang F1 Circuit - contract value • Ventured into property investment and management of RM308 million, within a record time of 14 months 2007 1999 • Forged strategic partnership with Arabtec Holding PJSC of • Transferred to the Main Board of Bursa Malaysia Securities Dubai, U.A.E. Berhad – Construction Sector • Foray into Dubai construction market – Storm Water Drainage • First foray into overseas construction – India and Sewerage System Works at the Dubai World Central International Airport, U.A.E. 2001 • Foray into Abu Dhabi construction market – Abu Dhabi F1 Circuit • Achieved ISO 9002 : 1994 Certifi cation on Yas Island, Abu Dhabi, U.A.E. • Malaysian Construction Industry Excellence Award (MCIEA) – • Clinched the single largest ever construction contract of RM4.6 Special Projects Category - Sepang F1 Circuit billion - Meydan Racecourse Dubai, U.A.E. • SI-KPMG Shareholder Value Award - No.1 for Construction, • Inducted as a component stock of the Kuala Lumpur Composite Infrastructure & Property Category Index (KLCI) by Bursa Malaysia Securities Berhad • Secured RM7.3 Billion of new construction jobs – largest for a single year • Road Engineering Association of Malaysia - Road Engineering Excellence Award le fi Kota Kinabalu International Airport Established on 14 January 1981 as WCT Earthworks & Building Contractors Sdn Bhd, the Company assumed its present name of WCT Engineering Berhad when it became a public listed company on 1 April 1994. WCT made Corporate Pro its debut on the Second Board of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 16 February 1995 and subsequently on 7 January 1999, was elevated to the Main Board of Bursa Securities. Over the years, with continuous hard work, perseverance, and beliefs in management productivity and effi ciency, WCT has elevated its standing and solid reputation in the construction industry both local and abroad. As a team, we strived through the period of slow economic growth in the mid-1980s, as well as the fi nancial crisis in the late 90s. These periods have not only strengthened our position in the construction and property industry but also propelled us into expanding our products and services to include project management, construction design and value engineering in: • F1 racing circuit; • High-rise and special purpose building; • Airport; • Commercial building; • Iconic infrastructure; • Township planning & development; • Racecourse; • Commercial property development & • Hydroelectric dam; management; and • Expressway & Highway; • BOT Toll Concessions. Over a period of 27 years, WCT has completed more than 300 Construction Projects valued at RM5.7 billion with global presence in the Middle East, India, Vietnam and Malaysia and has delivered in excess of 11,000 units of residential and commercial properties amounting to gross development value of RM2.4 billion. In assets investment, WCT owns shopping malls, Grade-A offi ces, hotel and has equity ownership in three BOT Toll Highway Concessions in India. Our construction capabilities and track records are recognized both locally and abroad. WCT is the recipient of several distinguished awards including the highly acclaimed Builder of the Year Award in 2002, Special Project Award for Sepang International F1 Circuit in 2001 and the International Achievement Award in 2004 by the Construction Industry Development Board of Malaysia. In 2005, the Ministry of International Trade and Industry of Malaysia has accorded WCT with the prestigious Export Excellence Award. More recently, WCT was named the recipient of the Road Engineering Excellence Award 2007 for the construction of Guthrie Corridor Expressway by the Road Engineering Association of Malaysia. A highly acclaimed organisation with the drive to achieve greater heights, WCT is moving forward with a Vision to be a true leader in the fi elds of Engineering & Construction, Property Development and Management known for its Innovation and Excellence. It is the objective of WCT to constantly provide excellent quality products and valuable services to our clients, and at the same time, create a better quality of life for the society. As a responsible corporate citizen, we are invariably committed to good governance and upholding shareholders’ value. 2 annual report 2007 Awards & Achievements 2001 OHSAS 18001 : 1999 SI-KPMG Shareholder Value Awards Occupational Health and Safety Management Winner for the Construction, Infrastructure and Systems Certifi cation Property Category • Provision of Construction Services for Building Awarded by Smart Investor-KPMG and Civil Engineering Works including Turnkey Projects Certifi cation No. W00710001 Special Project Award Malaysian Construction Industry Excellence Awards OHSAS 18001 : 1999 • Sepang F1 Circuit Occupational Health and Safety Management Awarded by the Construction Industry Systems Certifi cation Development Board of Malaysia (CIDB) • Provision of Residential and Commercial Property Development and Maintenance Services 2002 Certifi cation No. W011300010905 Builder of the Year Malaysian Construction Industry Excellence Awards Awarded by the Construction Industry Development 2007 Board of Malaysia (CIDB) Road Engineering Excellence Award • Principal Contractor of Guthrie Corridor Expressway 2003 Awarded by the Road Engineering MS ISO 9001 : 2000 Association of Malaysia Quality Management System Certifi cation • Provision of Construction Services for Building and Civil Engineering Works including Turnkey Projects Certifi cate of Award for Best Environmental Certifi cation No. AR 2274 Management System • Design, Construction and Completion of the Offi ce Building on Plot 3C4, Precinct