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Annual Report

In: Business and Management

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Contents
Corporate Information Board of Directors of the Manager Management of the Manager Chairman’s Statement Statement of Particulars of Directors of The Management Company Profile of Directors of the Manager Particulars of Members of The Property Investment Committee Profile of The Chief Executive Officer of The Manager Performance Data Composition of Investment Portfolio Unitholdings and Market Price Property Portfolio Analysis of Unit Holdings Financial Statements Unit Holders Resource

2 3 4 5 8 10 13 15 16 18 19 20 23 26 81

Corporate Information

Manager Pelaburan Hartanah Nasional Berhad (175967-W) (Incorporated in Malaysia) Registered Office Of The Manager Tingkat 4, Balai PNB 201-A, Jalan Tun Razak 50400 Kuala Lumpur Telephone : 03-20505100 Facsimile : 03-20505878 Website : www.ahp.com.my E-mail : phnb@pnb.com.my Board Of Directors Of The Manager Tun Ahmad Sarji bin Abdul Hamid (Chairman) Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman Tan Sri Dato’ Seri Ainum binti Mohamed Saaid Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil Dato’ Abd. Wahab bin Maskan Dato’ Idris bin Kechot Secretary Of The Manager Adibah Khairiah binti Ismail @ Daud (MIA 13755) Tingkat 4, Balai PNB 201-A Jalan Tun Razak 50400 Kuala Lumpur. Management Of The Manager Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman (Executive Director) Dato’ Idris bin Kechot (Executive Director) Hafidz Atrash Kosai bin Mohd Zihim (Chief Executive Officer) Trustee AmanahRaya Trustees Berhad (766894-T) Tingkat 2, Wisma TAS No. 21, Jalan Melaka 50100 Kuala Lumpur Telefon : 03-20365000 Facsimile : 03-20720320

Investment Manager Permodalan Nasional Berhad (38218-X) Tingkat 4, Balai PNB, 201-A, Jalan Tun Razak 50400 Kuala Lumpur Property Manager IM Global Property Consultants Sdn Bhd (701223-X) 47-2, 2nd Floor, Wisma IMG Jalan 3/76D, Desa Pandan 55100 Kuala Lumpur Registrar Of The Trust In Charge Of The Register Of Unitholders Symphony Share Registrars Sdn. Berhad (378993-D) Level 6 Symphony House Pusat Dagangan Dana 1 Block D13 Jalan PJU 1A/46 47301 Petaling Jaya Selangor Darul Ehsan Telephone : 03-78418000 Facsmile : 03-78418152 Auditors Messrs. Hanafiah Raslan & Mohamad (AF 0002) Solicitors Advising The Manager In Connection With The Trust Messrs. Zainal Abidin & Co. Bankers For The Trust Maybank Islamic Berhad (787435-M) CIMB Islamic Bank Berhad (671380-H) Stock Exchange Listing Bursa Malaysia Securities Berhad

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Annual Report 2012

Board Of Directors Of The Manager

TUN AHMAD SARJI BIN ABDUL HAMID
(Chairman)

TAN SRI DATO’ SRI HAMAD KAMA PIAH BIN CHE OTHMAN

TAN SRI DATO’ SERI AINUM BINTI MOHAMED SAAID

DATO’ SERI MOHD. HUSSAINI BIN HAJI ABDUL JAMIL

DATO’ ABD. WAHAB BIN MASKAN

DATO’ IDRIS BIN KECHOT
Amanah Harta Tanah PNB

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Management Of The Manager

TAN SRI DATO’ SRI HAMAD KAMA PIAH BIN CHE OTHMAN
(Executive Director)

DATO’ IDRIS BIN KECHOT
(Executive Director)

ENCIK HAFIDZ ATRASH KOSAI BIN MOHD ZIHIM
(Chief Executive Officer)

ADIBAH KHAIRIAH BINTI ISMAIL @ DAUD
(Company Secretary)

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Annual Report 2012

Chairman’s Statement

TUN AHMAD SARJI BIN ABDUL HAMID
On behalf of the Board of Directors of Pelaburan Hartanah Nasional Berhad (PHNB), as the Manager of Amanah Harta Tanah PNB (AHP), it is my pleasure to present the Annual Report of AHP for the year ended December 31, 2012. FINANCIAL RESULTS For the financial year ended December 31, 2012, AHP earned a total investment income of RM12.7 million, which represents an increase of 3.93% from RM12.22 million recorded in 2011. The increase was mainly attributed to the revaluation surplus of RM2.58 million arising from the revaluation of real estate investment during the year as compared to RM2.16 recorded in 2011. The total expenses for 2012 was RM2.38 million, representing an increase of 12.26% from RM2.12 million recorded in 2011, which was mainly due to the increase in financing cost. Income before taxation for the year improved by 2.18% to RM10.32 million as compared to RM10.10 million recorded in 2011. DISTRIBUTION OF INCOME The Board of Directors and the Trustee, AmanahRaya Trustees Berhad (ART), have approved a final income distribution of 3.70 sen a unit for the period from July 1, 2012, to December 31, 2012, which is payable on February 28, 2013. With

Amanah Harta Tanah PNB

5

an interim income distribution of 3.70 sen a unit for the period from January 1, 2012, to June 30, 2012, which was paid on August 30, 2012, the total income distribution for the financial year ended December 31, 2012, amounts to RM7.4 million or 7.40 sen a unit. This represents the same amount of total income distributed in 2011. INVESTMENT PORTFOLIO OF AHP The value of the investment of AHP as at December 31, 2012, amounted to RM176.96 million. This comprises investment in real estates at a fair value of RM161.15 million, investment in quoted shares at market value of RM2.0 million and short-term investment of RM13.81 million. INVESTMENT IN REAL ESTATE As at December 31, 2012, the real estates in the portfolio of AHP has been reduced to nine following the completion of disposal of a shop premises located in Melaka. The average occupancy rate of real estates of AHP was 90.30% with Bangunan AHP, located at Taman Tun Dr. Ismail, Kuala Lumpur and Sri Impian, located at Taman Setiawangsa, Kuala Lumpur securing 100% occupancy level. Plaza VADS, located at Taman Tun Dr. Ismail, Kuala Lumpur, recorded a high occupancy level of 86.92% despite the on-going upgrading and refurbishment works. The remaining six real estates of AHP, comprising shop premises, recorded average occupancy rates of 67.52% with three of the shop premises recording 100% occupancy. On another note, the upgrading and refurbishment of Plaza VADS (the Project) consist of two (2) phases; Phase 1: refurbishment and upgrading works to typical lifts lobbies, toilets, staircases, common corridors, electrical fit-out and fire protection and Phase 2; construction of new annex block and refurbishment of the main lobby and building façade. Phase 1 has been completed by the appointed contractor on April 2012 and presently Phase 2 is in progress of finalization of the structural strengthening methods for the existing podium block. The target completion of Phase 2 is expected by June 2014 with the total estimated cost of the construction for upgrading and refurbishment for both phases at approximately RM59 million. REVIEW OF THE PROPERTY MARKET In the first three quarters of 2012, the domestic economy grew by an estimated average of 5.3% from 5.1% in 2011. The domestic economy could have grown by over 5.0% in 2012. This was despite the eurozone being in a recession and the still sluggish performance of the U.S. economy. Global growth had also been weighed down by the slowdown in China and Japan, the second and third largest economies in the world respectively given the softening in global external demand. However, the low food and oil prices in 2012 had supported growth during the year. According to the International Monetary Fund (IMF) in January 2013, the global economy is to expand by 3.2% in 2012 from 3.9% in 2011. Growth of the Malaysian economy had been hampered by the lackluster demand for local goods given the weakness in the global economy which had dampened global external demand. However, domestic demand and consumption had remained robust given the favourable performance of private consumption and investment activities by both the private and public sectors. The Economic Transformation Programme (ETP), which had provided a boost to private investment, continued to be the key driver of growth in 2013. The benchmark interest rate, the Overnight Policy Rate (OPR), was maintained at the 3.00% level throughout the year as Bank Negara Malaysia (BNM) maintained its accommodative monetary policy stance amidst low inflation and moderate growth performance. BNM continued to manage the ample liquidity in the Malaysian economy effectively. The overall performance of the domestic property market for the first three quarters 2012 was in tandem with further investment activities under the ETP particularly the infrastructure projects, oil, gas and energy as well as Greater Kuala Lumpur. From January to September 2012, demand for the purpose-built office (PBO) sub sector had increased by 379,590 square meters (sq.m.) or 2.6% to 14.78 million sq. m. from 14.4 million sq. m. as at 1st January 2012. Kuala Lumpur had absorbed 10% of the total news spaces. As at the end of third quarter 2012, the national occupancy rate stood at 82.9% or equivalent to 14.8 million sq m. Kuala Lumpur had recorded 78.5% of occupancy rate and dominated 38% of the total occupied space nationwide. On the supply side, the PBO space increased by 2.2 % or 384,372 sq. m. for the first three quarters of 2012 to 17.82 million sq. m. from 17.44 million sq. m. as at January 2012. As at the end of third quarter 2012, the total supply of PBO in Malaysia stood at 17.8 million sq. m. Of this total, 40% were in Kuala Lumpur.

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Annual Report 2012

PROSPECTS The global economy is expected to chart positive growth in 2013 although downside risks remain significant on prospects of a fiscal consolidation in advanced economies. The prevailing eurozone crisis and the possibility of a U.S fiscal cliff - a combination of 607 billion dollars of spending cuts and tax increases – being realised and the need to raise the U.S. legal debt limit early 2013 are impacting global confidence and slowing growth. Likewise, the high and rising unemployment rate in some advanced economies continue to dampen consumption and spending. The IMF is forecasting the global economy to expand modestly by 3.5% in 2013 from 3.6% projected previously. The growth of the Malaysian economy is expected to be sustained in 2013 amidst the weakness in global growth. The ETP projects, in their third year of implementation, would help sustain the growth momentum of the domestic economy by further spurring domestic investment and boosting private sector activities. Meanwhile, the people friendly Budget 2013 would continue to promote the well-being of Malaysians, which in turn, would augur well for consumption growth. In tandem, BNMs monetary policy is expected to remain supportive of growth and this would enable economic expansion to be sustained by domestic demand amidst the fragile global recovery. The government is projecting the growth of the domestic economy at a slightly faster pace of 4.5-5.5% in 2013 from 4.5-5.0% estimated for 2012. Against this backdrop, the performance of the domestic property market is expected to remain positive through this year in tandem with the growth prospect of the economy and following higher spillover effects of the various ETP, 10th Malaysian Plan and high-impact projects in Greater Kuala Lumpur, Iskandar Malaysia and other areas in the country. According to the Valuation and Property Service Department statistics, PBO sub-sector in Malaysia is expected to receive another 2.04 million sq. m. of new supply between 2013 and 2015, of which an estimated 1.04 million sq. m. or 51% will be in Kuala Lumpur. APPRECIATION I would like to extend my appreciation to members of the Board of Directors of PHNB for their continuous support throughout the year. On behalf of the members of the Board of Directors of PHNB, I would also like to convey our appreciation to all staff members of PHNB for their hard work and dedication. I would also like to thank AmanahRaya Trustees Berhad and its staff members for their contribution to AHP and express our appreciation to the unit holders of AHP for their continued support to AHP.

TUN AHMAD SARJI BIN ABDUL HAMID Chairman

Amanah Harta Tanah PNB

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Statement Of Particulars Of Directors Of The Management Company
Board of Directors’ Attendance Record
Director Tun Ahmad Sarji bin Abdul Hamid Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman Tan Sri Dato’ Seri Ainum binti Mohamed Saaid Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil Dato’ Abd. Wahab bin Maskan Dato’ Idris bin Kechot Attendance at Board of Directors’ Meeting Held on 16.01.2012  26.01.2012  01.03.2012  22.05.2012  16.07.2012  10.12.2012  Date of Appointment 22.01.1997













24.06.1998

   

   

   

   

   

   

31.03.2009 12.11.1998 17.09.1990 03.03.2010

 Present
Other Information (i) Relationship There were no family relationship among the Directors and/or major unitholders. (ii) Conflict of Interest



Absent with Apologies

None of the Directors has any conflict of interest with AHP, except Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil who holds 12, 000 units in AHP. (iii) Conviction for Offences None of the directors has been convicted for any offences other than traffic offences within the past ten (10) years. (iv) Board of Committee The Board of Directors of the management company has established a Property Investment Committee to assist the Board in discharging its duties. Members of the Property Investment Committee comprise members from the Board of Directors as well as external members, who are as follows:No. 1. 2. 3. 4. 5. Member Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil (Chairman) Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman Dato’ Johan bin Ariffin Dato’ Ir. Jamaluddin bin Osman Professor Dato’ Dr. Nik Mohd. Zain bin Haji Nik Yusof

There were no other board committee established by the management company. However, the financial statements of AHP were presented to the Audit Committee of Permodalan Nasional Berhad (PNB), being the holding company of the management company. None of the members of the Audit Committee of PNB were the directors of the management company.

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Annual Report 2012

Statement Of Particulars Of Directors Of The Management Company (Cont’d)
(v) Directors’ Training All directors have attended various in-house and external programmes to enable them to discharge their duties and responsibilities effectively. In addition, all directors are encouraged to attend seminars, conferences and various training programmes to keep abreast with developments in the real estate industry. Conferences, seminars and training programmes attended by directors in the current year are as follows: • • • • • • • • • PNB Nominee Directors Convention and Executive Luncheon Talk 2012 Senior Management Presentation for Business Continuity Management Project Senior Management Series: Global Issues Influencing the Capital Market Outlook Senior Management Series: Personal Data Protection Act 2010 Senior Management Series: Behavioral Finance (Neuroscience), Business Strategy & The Market Lean Six Sigma Awareness Global Islamic Wealth and Asset Management – Capitalising Challenges & Opportunities Islamic Financial Planning and Wealth Management Conference High Performance Leadership

(vi) Other Directorship of Public Companies Director 1. 2. 3. 4. 5. 6. Public Companies NCB Holdings Berhad Yayasan Pelaburan Bumiputra Permodalan Nasional Berhad Amanah Saham Nasional Berhad Kontena Nasional Berhad The International and Commonwealth University of Malaysia Berhad 7. Amanah Mutual Berhad 8. Yayasan Karyawan 9. Professional Golf of Malaysia 1. 2. 3. 4. 5. 6. 7. 8. 9. Sime Darby Berhad Chemical Company of Malaysia Berhad Permodalan Nasional Berhad Amanah Saham Nasional Berhad Sime Darby Property Berhad Amanah Mutual Berhad Yayasan Karyawan Securities Industry Dispute Resolution Center Professional Golf of Malaysia

Tun Ahmad Sarji bin Abdul Hamid

Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman

Tan Sri Dato’ Seri Ainum binti Mohamed Saaid Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil Dato’ Abd. Wahab bin Maskan

1. Permodalan Nasional Berhad 2. Amanah Saham Nasional Berhad Nil 1. Eastern & Oriental Berhad 2. Sime Darby Property Berhad 3. Kuala Lumpur Golf & Country Club Berhad 1. Amanah Capital Malaysia Berhad 2. Amanah Saham Nasional Berhad 3. Amanah Mutual Berhad

Dato’ Idris bin Kechot

Amanah Harta Tanah PNB

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Profile Of Directors Of The Manager

TUN AHMAD SARJI BIN ABDUL HAMID
(Non-Independent Non-Executive Chairman)

TAN SRI DATO’ SRI HAMAD KAMA PIAH BIN CHE OTHMAN
(Non-Independent Executive Director) Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman, aged 61, a Malaysian, was appointed as a Director of PHNB on June 24, 1998, following his appointment as the Group Chief Executive of PNB on February 1, 1998. His working experience spans over 33 years in the field of investment and unit trust management and currently he is the President and Group Chief Executive of PNB. He is also a member of the Board of Directors of PNB, Amanah Saham Nasional Berhad and Amanah Mutual Berhad as well as a member of the Board of Trustees of the Merdeka Heritage Trust. Tan Sri Dato’ Sri Hamad Kama Piah is also the Chairman of the Board of Directors of Universiti Malaysia Kelantan since May 2007 and sits on the Board of Directors of a number of Malaysian companies. A graduate of Institut Teknologi MARA (presently known as Universiti Teknologi MARA), he also holds a Masters degree from the University of Swansea, United Kingdom. He is a Senior Fellow of the Financial Services Institute of Australasia (FINSIA). He also holds the designation of a Certified Financial Planner and a Registered Financial Planner, and represents the PNB Group as Director in several other companies.

Tun Ahmad Sarji bin Abdul Hamid, aged 74, a Malaysian, was appointed to the Board of Directors of PHNB on January 22, 1997, by virtue of his position as the Chairman of Permodalan Nasional Berhad (PNB). Prior to his appointment as the Chairman of PNB, Tun Ahmad Sarji was the Chief Secretary to the Government. He had more than 35 years of experience in the public service. He was selected as the “Tokoh Maal Hijrah” for the Islamic year 1420 (1999). He was President, Commonwealth Association for Public Administration and Management from 1996 to 1998. Tun Ahmad Sarji also represents the PNB Group as Chairman of several companies. Tun Ahmad Sarji graduated from the University of Malaya in 1960. He also holds a Masters Degree in Public Administration from Harvard University, the United States of America and a Diploma in Public Administration from the Institute of Social Studies, The Hague, Netherlands. Tun Ahmad Sarji is formerly the Chairman of the Institute of Islamic Understanding Malaysia, a member of the Board of Trustees, Oxford Centre for Islamic Studies, University of Oxford, the United Kingdom, and the Asian Institute of Management, Manila, the Philippines, and Joint-Chairman, Malaysia Centre for Commonwealth Studies, University of Cambridge, the United Kingdom.

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Annual Report 2012

TAN SRI DATO’ SERI AINUM BINTI MOHAMED SAAID
(Independent Non-Executive Director) Tan Sri Dato’ Seri Ainum binti Mohamed Saaid, aged 66, a Malaysian, was appointed to the Board of Directors of PHNB on March 31, 2009. She also sits on the Board of Directors of Permodalan Nasional Berhad and Amanah Saham Nasional Berhad. Tan Sri Dato’ Seri Ainum holds a Bachelor Degree in Law from the University of Singapore and a Masters Degree in law from the University of Brussels. Tan Sri Dato’ Seri Ainum was Deputy Chief Executive in the Securities Commission from 1991 to 2001, and served as Attorney General in 2001. She joined the private sector as an Executive Director in Pengkalan Holdings Berhad in 1996. She served as Group Legal Advisor for the Corus Hotels Group UK and later joined Laura Ashley in UK in 2002. She was then appointed Laura Ashley UK’s Joint Chief Executive Officer and resigned as its Chief Executive Officer in January 2005. Tan Sri Dato’ Seri Ainum was appointed as an Independent Non-Executive Director of Sime UEP Properties Berhad from March 2005, to November 2007.

DATO’ SERI MOHD. HUSSAINI BIN ABDUL JAMIL
(Independent Non-Executive Director) Dato’ Seri Mohd. Hussaini bin Abdul Jamil, aged 76, a Malaysian, was appointed to the Board of Directors of PHNB on November 12, 1998. Dato’ Seri Mohd. Hussaini graduated with a Bachelor of Arts (Hons) Degree from University of Malaya in 1960 and obtained a Post Graduate Diploma in Development Planning from the University of London, the United Kingdom in 1973. During his more than 30 years in Government service, he has occupied various senior positions. In 1982, he was appointed as the Deputy Secretary-General of the Treasury of Malaysia. In 1990 he was appointed as Secretary-General of the Ministry of Health until his retirement in 1991. Dato’ Seri Mohd. Hussaini is also currently a Director of several other companies.

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Profile Of Directors Of The Manager (Cont’d)

DATO’ ABD. WAHAB BIN MASKAN
(Independent Non-Executive Director)

DATO’ IDRIS BIN KECHOT

(Non-Independent Executive Director)

Dato’ Abd. Wahab bin Maskan, aged 62, a Malaysian, was appointed to the Board of Directors of PHNB on September 17, 1990. Dato’ Abd. Wahab is the Group Chief Operating Officer of Sime Darby Berhad and Managing Director of Sime Darby Property Berhad. Dato’ Abd. Wahab had held the positions of Group Chief Executives of Kumpulan Guthrie Berhad (KGB) and Golden Hope Plantation Berhad. He has also held positions as Director of a number of local and overseas companies dealing in property, plantation and other sectors. Dato’ Abd. Wahab holds a Bachelor of Science Degree in Management (Real Estate) from the University of Reading, England. He is a Fellow of the Royal Institution of Surveyors (Malaysia) (FRISM), a Fellow of the Royal Institution of Chartered Surveyors (England and UK) (FRICS) and a Fellow of the Incorporated Society Planters (FISP) and a Fellow of Malaysian Institute of Management (FMIM).

Dato’ Idris bin Kechot, aged 57, a Malaysian, was appointed to the Board of Directors of PHNB on March 3, 2010. He also sits on the Board of Directors of Amanah Saham Nasional Berhad and Amanah Mutual Berhad. He graduated with a Master of Business Administration (Finance) from University of Stirling, United Kingdom. Dato’ Idris is also the Deputy President, Unit Trust, PNB and has held various key positions in the management of PNB.

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Annual Report 2012

Particulars Of Members Of The Property Investment Committee
Investment Committee Members’ Attendance Record
Attendance at Property Investment Committee Members’ Meeting Held on 17.04.2012 Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman Dato’ Johan bin Ariffin Dato’ Ir Jamaluddin bin Osman Professor Dato’ Dr. Nik Mohd. Zain bin Haji Nik Yusof

Member

Date of Appointment

P P P P P

04.01.2004 04.01.2004 04.01.2004 04.01.2004 04.01.2004

Other Information (i) Conflict of Interest None of the members of property investment committee has any conflict of interest with AHP, except Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil who holds 12, 000 units in AHP. (ii) Conviction for Offences None of the members has been convicted for any offences other than traffic offences within the past ten (10) years. (iii) Profile of members of the Property Investment Committee

DATO’ SERI MOHD. HUSSAINI BIN HAJI ABDUL JAMIL
Independent Chairman
Please refer to Director’s Profile

TAN SRI DATO’ SRI HAMAD KAMA PIAH BIN CHE OTHMAN
Non-Independent Member
Please refer to Director’s Profile

DATO’ JOHAN BIN ARIFFIN
Independent Member Dato’ Johan bin Ariffin, aged 53, a Malaysian, was appointed as a member of the Property Investment Committee of the Board of Directors on January 4, 2004. Dato’ Johan graduated with a Bachelor of Arts Degree in Economics from Indiana University, Bloomington Indiana, USA in 1980 and obtained his MBA (Marketing) from University of Miami, Coral Gables, Florida, USA in 1981. Presently, Dato’ Johan is the Chairman of Mitraland Properties Sdn Bhd and a Board Member of Malayan Banking Berhad and Sime Darby Property Berhad. He is also currently a Director of several other companies.

Amanah Harta Tanah PNB

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Particulars Of Members Of The Property Investment Committee (Contd.)
DATO’ IR. JAMALUDDIN BIN OSMAN
Independent Member Dato’ Ir Jamaludin bin Osman, aged 57, a Malaysian was appointed as a member of the Property Investment Committee of the Board of Directors on January 4, 2004. Dato’ Ir Jamaludin holds a degree in Civil Engineering from University Teknologi Malaysia and in 1992, completed a Management Development Programme with the Asian Institute of Management. He is a registered professional engineer with the Board of Engineers Malaysia and a member of the Institute of Engineers Malaysia. Dato’ Ir Jamaludin started his career as a civil engineer with the Development Authority of Pahang Tenggara in 1979 and subsequently with Dewan Bandaraya Kuala Lumpur. In 1981, he joined Petronas as a Project Engineer, after which he spent 19 eventful years at Syarikat Perumahan Pegawai Kerajaan (SPPK). This served as a platform for him to nurture his marketing and management skills, which led to his appointment as Managing Director of SPPK in 1999, and eventually as Group Managing Director of renowned Island & Peninsular Berhad, property developer in 2005. With diverse functional and industry background over a period that spans more than three decades, Dato’ Ir. Jamaludin has assumed the role of Group Managing Director of the I&P Group of Companies with full accountability across the areas of operational excellence, financial controls, strategic planning and human resource development with an excellent track record in providing leadership to the I&P Group. He also sits on the board of the I&P Group and several other companies including Petaling Garden Sdn. Berhad, Perumahan Kinrara Berhad and Projek Lintasan Kota Holdings Sdn. Berhad.

PROF. DATUK DR. NIK MOHD. ZAIN BIN HAJI NIK YUSOF
Independent Member Prof. Datuk Dr. Nik Mohd. Zain bin Haji Nik Yusof, aged 66, a Malaysian, was appointed as a member of the Property Investment Committee of the Board of Directors on January 4, 2004. Prof. Datuk Dr. Nik Mohd Zain graduated with honours from University of Malaya in 1969. Obtained his Masters in Wisconsin, USA and later gained a PhD in law from University of Kent, UK. Previously, Prof. Datuk Dr. Nik Mohd Zain held key positions in both private and government bodies such as Director of Bank Rakyat and FELDA group of Companies, Director General of Department of Land and Mines, Malaysia, Secretary General of Ministry of Land and Cooperative Development, and Federal Lands Commissioner of Malaysia. In 2002, he represented Malaysia on the dispute over Pulau Sipadan and Pulau Ligitan at the International Court of Justice (ICJ) in Hague, Holland. Prof. Datuk Dr. Nik Mohd Zain served as professor at the School of Land Administration and Land Development of Universiti Teknologi Malaysia from 2003 to January 2005. Presently he runs his own land and property consulting company called BIG Property Consultants Sdn. Berhad. He also a member of the Malaysian Administrative & Diplomatic Service and the Chairman of Yayasan Peneroka Negara. He is appointed as Adjunct Professor at the Department of Land Management of University Putra Malaysia from January 2006.

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Annual Report 2012

Profile Of The Chief Executive Officer Of The Manager

ENCIK HAFIDZ ATRASH KOSAI BIN MOHD ZIHIM
ACA (Ireland), CA (Malaysia) Encik Hafidz Atrash Kosai bin Mohd Zihim, aged 37, a Malaysian, was appointed the Chief Executive Officer of PHNB on August 30, 2010. Encik Hafidz is a Fellow of the Institute of Chartered Accountants in Ireland (FCA Ireland) and a Chartered Accountant (CA) of the Malaysian Institute of Accountants. He also holds a Capital Market Services Representative’s License from the Securities Commission of Malaysia. He graduated with a First Class Honours Degree in Accounting and Finance from Leicester DeMontfort University, England. Encik Hafidz has wide experience in the investment and financial sectors. Prior to joining PNB, he was attached with a renowned investment bank and prior to that, was involved in the accounting and auditing sector where he trained professionally and completed his articleship as a Chartered Accountant. He joined PNB in 2003 in the Corporate Finance Department before joining the Office of the President and Group Chief Executive of PNB. Consequently, he was attached to the Corporate Services Department prior to his transfer to PHNB in early 2010. Besides shouldering professional responsibility in PHNB, Encik Hafidz holds important posts in voluntary organizations such as the Secretary of Famemas Malaysia Sports Supporters Club and as the Vice President of the Malaysian Irish Alumni Association. He is also the Secretary of his Resident’s Association and local Rukun Tetangga. Encik Hafidz has no family relationship with any of the directors and/or major unitholders of AHP. He also has no conflict of interest with AHP and has not been convicted for any offences other than traffic offences within the past 10 years.

Amanah Harta Tanah PNB

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Performance Data

Performance Highlights
Financial Year Ended December 31 Total Asset Value (RM’000) Net Asset Value (RM’000) Net Asset Value a Unit (sen) Highest Net Asset Value a unit (sen) Lowest Net Asset Value a unit (sen) Unit in Circulation (‘000) Highest Traded Price a Unit (sen) Lowest Traded Price a Unit (sen) Distribution to Unitholders (RM’000) 2012 178,566 159,393 159.39 159.39 154.05 100,000 111.0 103.0 7,400 * 2011 171,151 156,469 156.47 156.47 151.65 100,000 111.0 95.0 7,400 * 2010 159,324 153,667 153.67 153.67 148.39 100,000 100.0 90.0 7,200 *

Income Distribution a Unit - Interim (sen) - Date of Distribution - Final (sen) - Date of Distribution

3.70* 28/08/2012 3.70* 28/02/2013

3.70* 28/08/2011 3.70* 29/02/2012

3.60* 27/08/2010 3.60* 28/02/2011

Net Asset Value a Unit After Income Distribution (sen) Distribution Yield (%) Management Expense Ratio (%) Portfolio Turnover Ratio (times)
Note : * Exempted from tax at Trust level

155.69 6.73 1.51 0.06

152.77 7.05 1.37 0.06

150.07 7.27 1.17 0.08

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Annual Report 2012

Performance Data (Contd.)

Computation of Return Total Return : ((1 + Capital Return /100) x (1 + Income Return /100) - 1) X 100 NOTE: Past performance is not necessarily indicative of future performance. Unit prices and investment returns fluctuate.

Capital Return : (End of Year Market Price - Beginning of Year Market Price) X 100 Beginning of Year Market Price Income Return : Income Distribution End of Year Market Price

Average Annual Return
One Year % AHP Kuala Lumpur Composite Index (KLCI) Property Index 11.81 11.19 3.22 Three Years % 21.59 10.17 9.70 Five Years % 17.73 3.33 (0.07) Since 1989 % 8.38 7.02 0.68

Annual Total Return For The Last Five Financial Year
Financial Year Ended December 31, Total Return (%) Capital Return (%) Income Return (%) Benchmark *
* Benchmark: Property index

2012 11.81 4.76 6.73 3.22

2011 13.54 6.06 7.05 (2.07)

2010 15.43 7.61 7.27 30.59

2009 32.00 22.67 7.61 53.03

2008 (4.68) (12.28) 8.67 (50.68)

Amanah Harta Tanah PNB

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Composition Of Investment Portfolio

2012
0.28% 91.01% 0.12% 0.07%

2011
0.27% 0.55% 0.05% 0.10%

0.52% 0.05% 0.09%

93.00%

0.06%

0.04%

7.86%

5.93%

2010
0.27% 0.68% 0.05% 0.08% 0.06% 0.11% 5.83%

2009
0.08%

92.92%

93.73%

0.03%

0.70% 0.05%

5.41%

2008
0.58% 0.02% 0.08% 0.05% 0.04% 0.07% 5.99%

Real Estate Real Estate Investment Trust * Consumer Products * Finance * Trading * Insfrastructure project * Plantations * Short-term investment and cash Industrial Products *

93.17%

Note: * Investment in Quoted shares.

18

Annual Report 2012

Unitholdings And Market Price
Analysis of unitholdings as at 31 December 2012 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Individual Bumiputra Corporate Body Non-Bumiputra Foreign Institutions

Market Price A unit for the year ended 31 December 2012 1.60 1.55 1.50 1.45 1.40 1.35 1.30 1.25 1.20 1.15 1.10 1.05 1.00 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 1800 1750 1700 1650 1600 1550 1500 1450 1400 1350 1300 1250 1200 1150 1100 1050 1000 950 900 850 800 750 700 650 600

Jan

Feb

Mar

Apr

Apr AHP

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Property Index

FBM KLCI

Amanah Harta Tanah PNB

19

FBM KLCI / Property Index

Price a Unit (RM)

20
List Of Real Estate As At 31 December 2012
Revaluation Surplus / (Deficit) Valuation in 2012 (RM ‘000) Valuation in 2011 (RM ‘000) Net Lettable Area (sq. ft.) Date of Acquisition Cost of Acquisition (RM ‘000) Additions (RM ‘000) Valuation in 2012 (RM ‘000) Cost of Acquisitions and Additions (RM ‘000) Net Book Value (RM ‘000) Method of Valuation (Date of Valuation) 194,275 21/03/1989 45,909 22,785 68,694 100,000 97,103 2,897 (245) Comparison and Investment Methods (01.11.2012) 96,154 21/03/1989 16,323 16,964 33,287 42,000 42,216 (216) 900 Comparison and Investment Methods (01.11.2012) 5,280 16/10/1995 910 910 2,800 2,800 300 Comparison and Investment Methods (01.11.2012) 3,100 12/12/1995 1,653 1,653 1,500 1,500 95 Comparison and Investment Methods (01.11.2012) 38,290 15/05/1996 13,318 188 13,506 11,000 11,000 500 Comparison and Investment Methods (01.11.2012)

Property Portfolio

Annual Report 2012

Description of Real Estate and Location

Land Tenure

Age of Building (years)

1.

24-Storey Office Building known as Plaza VADS Taman Tun Dr. Ismail Kuala Lumpur

Freehold

22

2.

Four-Storey Commercial building known as Bangunan AHP, Taman Tun Dr. Ismail Kuala Lumpur

Freehold

23

3.

Three-Storey shopoffice Jalan Wan Kadir 4 Taman Tun Dr. Ismail Kuala Lumpur

Freehold

14

4.

Ground & First Floor, Blok G Asia City Kota Kinabalu, Sabah

Leasehold (99 years expiring on 31.12.2082)

15

5.

Four-storey office building known as Sri Impian, Taman Setiawangsa, Kuala Lumpur

Freehold

22

Property Portfolio (Contd.)
List Of Real Estate As At 31 December 2012 (Contd.)
Revaluation Surplus / (Deficit) Valuation in 2012 (RM ‘000) Valuation in 2011 (RM ‘000)

Description of Real Estate and Location Date of Acquisition Additions (RM ‘000)

Land Tenure

Age of Building (years)

Net Lettable Area (sq. ft.) Cost of Acquisition (RM ‘000) Valuation in 2012 (RM ‘000)

Cost of Acquisitions and Additions (RM ‘000)

Net Book Value (RM ‘000)

Method of Valuation (Date of Valuation)

6.

Four-storey shophouse Miri Waterfront, Commercial Centre, Jalan Permaisuri Miri, Sarawak 3,998 24/05/1996 949 4 953 950 950

Leasehold (60 years expiring on 30.9.2082)

15

-

70

Comparison and Investment Methods (01.11.2012)

7.

Four-storey Shopoffice Lot 224, Jalan Negara 2, Pusat Bandar Melawati, Kuala Lumpur 6,705 30/08/1996 783 31 814

Freehold

22

1,100

1,100

-

100

Comparison and Investment Methods (01.11.2012)

8. 4,854 12/11/1996 966

Four-Storey Shopoffice Jalan Chainferry, Taman Inderawasih Butterworth, Penang -

Freehold

14

966

800

900

(100)

(50)

Comparison and Investment Methods (01.11.2012)

Amanah Harta Tanah PNB

9.

Four-Storey Shopoffice Off Jalan Rubber Kuching, Sarawak 4,432 30/08/2002

Leasehold (874 years expiring on 31.12.2811)

13

855

-

855

1,000

1,000

-

(100)

Comparison and Investment Methods (09.08.2012) 81,666 39,972 121,638 161,150 158,569 2,581 1,570

TOTAL

21

22
Tenancy Details as at 31 December 2012
Major Tenants Occupancy Rate (%) Year of Expiry Rental Review 8 3 2 2015 2012 2015 2012 3.58 Maintenance Cost (RM) Average Tenancy Period Average Rental (RM/sq.ft./ month) 1. 2. 3. VADS Berhad YSP Industries (M) Sdn. Bhd. Vacant 595,872 77.90 9.02 13.08 -----------100.00 ====== 1. 2. 3. 4. 5. 6. 269,879 Hwang-DBS Investment Bank Bhd. Silverlake Innovative Partners Sdn Bhd VADS Berhad PMI Education Sdn. Bhd. Optimax Eye Specialist Centre Sdn. Bhd. Others 28.51 25.69 18.71 9.24 9.09 8.76 -----------100.00 ====== 100.00 14,646 3 1 3 3 3 2013 2012 2013 2013 2015 2013 2013 2013 2013 2015 3.42 1. 1. 2. 3. 4. Amanah Saham Nasional Berhad ARH Jurukur Bahan Sdn. Bhd. Others Vacant I&P Harta Sdn. Bhd. 2 2013 2013 2.20 29.56 23.63 18.61 28.19 -----------100.00 ====== 95.79 4.21 11,280 3 1 2 2.7 2013 2013 2013 2012/2013 2012 2012 2012 2012/2013 1.89 Total Occupied Area Total Vacant Area 891,677

Property Portfolio (Contd.)

Annual Report 2012

Property

Net Lettable Area (sq. ft.)

Parking Spaces (Bays)

1.

Plaza VADS

194,275

402

2.

Bangunan AHP

96,154

200

3.

Sri Impian

38,290

-

4.

Six (6) Shop premises

28,369

-

Total

357,088

602

Analysis of Unitholdings
Analysis of Unitholdings Unitholders’ Capital as at 31 December 2012 Authorised Issued and fully paid : 1,000,000,000 units : 100,000,000 units

Distribution of Unitholders as at 31 December 2012
Unit Class No. of Unitholders 15 2,858 3,299 753 64 2 6,991 Percentage of Unitholders 0.21 40.88 47.19 10.77 0.92 0.03 100.00 No. of Unitholdings 371 2,425,625 13,322,164 23,038,140 15,141,700 46,072,000 100,000,000 Percentage of Unitholdings 0.00 2.43 13.32 23.04 15.14 46.07 100.00

Less than 100 101 - 1,000 1,001 - 10,000 10,001 - 100,000 100,001 to less than 5% of issued units 5% and above of issued units Total

Classification of Unitholders as at 31 December 2012
Number of Unitholders Category of Unitholders Malaysian Bumi Individuals Body Corporate a. Banks/Finance Companies b. Investment Trusts/Foundations c. Other Types of Companies Government Agencies/Institutions Nominees 2,449 NonBumi 3,929 Foreign Bumi 9,390,600 Numbers of Unitholdings Malaysian Non-Bumi 29,430,700 Foreign Percentage Malaysian Bumi 9.39 NonBumi 29.43 Foreign

55

1,669,110

1.67

7 12 2 272 2,742

3 31 161 4,124 6,991

1 69 125

46,091,000 396,900 24,000 2,651,490 58,553,990

502,000 2,293,500 2,801,500 35,027,700 100,000,000

20,000 4,729,200 6,418,310

46.09 0.40 0.02 2.65 58.55

0.50 2.30 2.80 35.03 100.00

0.02 4.73 6.42

Total

Amanah Harta Tanah PNB

23

Analysis of Unitholdings (Contd.)
30 Largest Unitholders as at 31 December 2012

No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.

Unitholders Amanah Raya Nominees (Tempatan) Sdn. Berhad (Skim Amanah Saham Bumiputera) * Permodalan Nasional Berhad ** Chong Kon Ling Popular Industries Sdn. Berhad Gan Tuan Boon Liew Yoon Yee Citigroup Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Tey Rose) Toh Hock Chooi Abdul Rahim bin Bidin BOH Plantations Sdn. Berhad Public Invest Nominees (Asing) Sdn Bhd (Exempt an for Phillip Securities Pte. Ltd) Tan Teck Peng BOH Plantations Sdn. Berhad TA Nominees (Tempatan) Sdn. Berhad (Pledged Securities Account for Chor Sek Choon) Richfund Sdn. Berhad Teuh Chin Heng RAM Holdings Berhad Neoh Foundation (1979) Toh Han Ein Ng Heng Heem Cimsec Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Lim Chen Yik) Yik Poh Chan @ Yek Poh Chan HSBC Nominees (Asing) Sdn Bhd (Exempt an for Pictet & CIE) Lee Chin Yik HDM Nominees (Tempatan) Sdn. Berhad (DBS Vickers Secs (S) Pte. Ltd. For Winston Jong Khi Min) Mayban Nominees (Tempatan) Sdn Bhd (A/C for Ng Hong Tee) Premjit Singh a/l Onkar Singh Liew Kon Mun HLB Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Liew Sun Yick) PB Trustee Services Berhad (Lim Chin Sim) Total

Units Held

Percentage of Units in Issue 41.01 5.06 0.80 0.52 0.50 0.46 0.41 0.41 0.40 0.39 0.38 0.37 0.33 0.31 0.29 0.29 0.29 0.28 0.27 0.27 0.27 0.27 0.26 0.26 0.25 0.24 0.24 0.24 0.22 0.21 55.69

41,008,500 5,063,500 1,010,000 517,700 500,000 460,500 411,000 405,700 402,400 385,000 380,000 370,000 333,800 310,000 291,000 290,300 286,900 280,000 267,500 265,700 265,000 263,100 260,000 258,000 249,800 240,000 240,000 238,800 219,600 212,000 55,685,800

Note: * Substantial unitholder ** Related company to Manager

24

Annual Report 2012

Contents
Manager’s Report

Page 26 35 35 36 37 39 41 42 43 45

Statement by Manager

Statutory Declaration

Trustee’s Report

Independent Auditors’ Report

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Amanah Harta Tanah PNB

25

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012

Pelaburan Hartanah Nasional Berhad (“PHNB”), the Manager of Amanah Harta Tanah PNB (“AHP” or “the Trust”), has pleasure in presenting the Manager’s Report on the Trust together with the audited financial statements of the Trust for the financial year ended 31 December 2012.

THE TRUST, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
AHP, a Real Estate Investment Trust, was constituted under a Deed of Trust dated 20 March 1989, between the Manager, PHNB, the Trustee, Amanah Raya Berhad and the several persons who acquire units in the Trust. AHP was launched on 21 March 1989 and was listed on Bursa Malaysia Securities Berhad (“Bursa Securities”) on 28 December 1990. The principal activity of the Trust is investment in real estates and other authorised investments with the objectives of achieving steady returns and for long term capital growth. There has been no significant change in the nature of this activity during the year. The Manager, a company incorporated in Malaysia, is a subsidiary company of Permodalan Nasional Berhad (“PNB”). The principal activity of the Manager is the management of real estate investment trusts. There has been no significant change in the nature of this activity during the year. PNB is a company incorporated in Malaysia. Its principal activity is investment holding which is mainly for the purpose of promoting greater ownership of shares in the corporate sector in Malaysia by the Bumiputera.

MANAGEMENT FEE AND COMMISSIONS
As provided in the Deed of Trust, the Manager is entitled to a management fee not exceeding 2% per annum of the net asset value of the Trust on each day of the accrual period. The management fee charged for the year ended 31 December 2012 is 1% (2011: 1%) per annum of the daily net asset value of the Trust. No initial service charge, fee or commission has been earned by the Manager in managing the Trust other than the management fee of RM1,561,185 (2011: RM1,535,575) as disclosed in Note 6 to the financial statements.

TERM OF THE TRUST
The Trust will continue its operations until such time as determined by the Trustee and the Manager as provided under the provisions of Clause 23 of the Third Supplemental Deed of Trust.

INVESTMENT OBJECTIVE
The main investment objective of the Trust is to provide reasonable level of income return to unit holders and allow them to gain from capital growth through the acquisition of a selected portfolio of real estate investments which have potential for long term capital growth.

26

Annual Report 2012

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

INVESTMENT POLICY AND STRATEGY
The investment policy of the Trust is directed towards the expansion of the Trust to be carried out through continuous search of quality real estates which give reasonable yield and capital appreciation. The Manager will continue to exercise prudent investment strategy with a view of generating stable and consistent income for the Trust. Property selection for the Trust will be based on a process with the main focus on criteria such as the location of the property, the potential for capital growth, physical quality of the property as well as the quality of the tenancy. During the financial year, the Manager continued to exercise prudent investment strategy with a view of generating stable and consistent income for the Trust. The Manager continued to establish good rapport with the tenants to ensure sustainable long term relationship with the tenants, thus ensuring continuous flow of rental income to the Trust.

INVESTMENTS OF THE TRUST
Total investments of the Trust, including cash and bank balances as at 31 December 2012 was RM177,063,537 (2011: RM169,684,633). Details of the investment portfolio of the Trust are as follows: 2012 RM At fair value: Real estate - Commercial and office buildings Real estate related-assets - Quoted shares by sector - Property - Real Estate Investment Trust Non-real estate related-assets - Quoted shares by sector - Consumer products - Finance - Infrastructure project - Plantation - Trading At amortised cost: Deposits with financial institutions, cash and bank balances % RM 2011 %

161,150,000

91.01

157,800,000

93.00

219,877

0.12

36,400 66,039

0.02 0.04

119,400 512,587 80,340 153,000 913,200

0.07 0.29 0.05 0.09 0.52

70,000 452,810 91,670 161,400 935,377

0.04 0.27 0.05 0.10 0.55

13,915,133 177,063,537

7.86 100.00

10,070,937 169,684,633

5.94 100.00

Details of the investment in real estate are as disclosed in Note 12 to the financial statements.

Amanah Harta Tanah PNB

27

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

PERFORMANCE OF THE TRUST
2012 Total net asset value (RM) Units in circulation (units) Net asset value per unit attributable to unit holders (sen) Market price per unit (sen) Highest traded price (sen) Lowest traded price (sen) There is no significant change in the assets allocation since the last report. 159,392,782 100,000,000 159.39 110.00 111.00 103.00 2011 156,468,623 100,000,000 156.47 105.00 111.00 95.00

RESULTS OF THE OPERATIONS OF THE TRUST
The results of the operations of the Trust for the year are as follows: RM Net income before taxation Taxation Net income after taxation 10,324,159 10,324,159

During the financial year, the Trust has recorded net income before taxation of RM10,324,159 as compared with RM10,101,725 recorded last financial year. Higher net income before taxation during the year was due to gain on disposal of real estate of RM300,000, as well as increase in revaluation of real estate of RM2,580,327. In terms of net rental income, the Trust has recorded a decrease of RM427,176 or 4.90% from RM9,637,857 recorded in previous year, due to the termination of rental by a few tenants. The Trust’s total expenditure showed an increase of RM260,141 or 12.29% from RM2,117,389 recorded last financial year.

REVIEW OF THE PROPERTY MARKET
In the first three quarters of 2012, the domestic economy grew by an estimate average of 5.3% from 5.1% in 2011. The domestic economy could have grown by over 5.0% in 2012. This was despite the eurozone being in a recession and the still sluggish performance of the U.S. economy. Global growth had also been weighed down by the slowdown in China and Japan, the second and third largest economies in the world respectively given the softening in global external demand. However, the low food and oil prices in 2012 had supported growth during the year. According to the International Monetary Fund (IMF) in January 2013, the global economy is to expand by 3.2% in 2012 from 3.9% in 2011.

28

Annual Report 2012

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

REVIEW OF THE PROPERTY MARKET (CONTD.)
Growth of the Malaysian economy had been hampered by the lackluster demand for local goods given the weakness in the global economy which had dampened global external demand. However, domestic demand and consumption had remained robust given the favourable performance of private consumption and investment activities by both the private and public sectors. The Economic Transformation Programme (ETP), which had provided a boost to private investment, continued to be the key driver of growth in 2013. The benchmark interest rate, the Overnight Policy Rate (OPR), was maintained at the 3.00% level throughout the year as Bank Negara Malaysia (BNM) maintained its accommodative monetary policy stance amidst low inflation and moderate growth performance. BNM continued to manage the ample liquidity in the Malaysian economy effectively. The overall performance of the domestic property market for the first three quarters 2012 was in tandem with further investment activities under the Economic Transformation Program (ETP) particularly the infrastructure projects, oil, gas and energy as well as Greater Kuala Lumpur. From January to September 2012, demand for the purpose-built office (PBO) sub sector had increased by 379,590 square meters (sq.m.) or 2.6% to 14.78 million sq.m. from 14.4 million sq. m. as at 1st January 2012. Kuala Lumpur had absorbed 10% of the total news spaces. As at the end of third quarter 2012, the national occupancy rate stood at 82.9% or equivalent to 14.8 million sq.m. Kuala Lumpur had recorded 78.5% of occupancy rate and dominated 38% of the total occupied space nationwide. On the supply side, the PBO space increased by 2.2 % or 384,372 sq. m. for the first three quarters of 2012 to 17.82 million sq. m. from 17.44 million sq. m. as at January 2012. As at the end of third quarter 2012, the total supply of PBO in Malaysia stood at 17.8 million sq. m. Of this total, 40% were in Kuala Lumpur.

PROSPECTS
The global economy is expected to chart positive growth in 2013 although downside risks remain significant on prospects of a fiscal consolidation in advanced economies. The prevailing eurozone crisis and the possibility of a U.S fiscal cliff - a combination of 607 billion dollars of spending cuts and tax increases – being realised and the need to raise the U.S. legal debt limit early 2013 are impacting global confidence and slowing growth. Likewise, the high and rising unemployment rate in some advanced economies continue to dampen consumption and spending. The IMF is forecasting the global economy to expand modestly by 3.5% in 2013 from 3.6% projected previously. The growth of the Malaysian economy is expected to be sustained in 2013 amidst the weakness in global growth. The ETP projects, in their third year of implementation, would help sustain the growth momentum of the domestic economy by further spurring domestic investment and boosting private sector activities. Meanwhile, the people friendly Budget 2013 would continue to promote the well-being of Malaysians, which in turn, would augur well for consumption growth. In tandem, BNMs monetary policy is expected to remain supportive of growth and this would enable economic expansion to be sustained by domestic demand amidst the fragile global recovery. The government is projecting the growth of the domestic economy at a slightly faster pace of 4.5-5.5% in 2013 from 4.5-5.0% estimated for 2012.

Amanah Harta Tanah PNB

29

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

PROSPECTS (CONTD.)
Against this backdrop, the performance of the domestic property market is expected to remain positive through this year in tandem with the growth prospect of the economy and following higher spillover effects of the various ETP, 10th Malaysian Plan and high-impact projects in Greater Kuala Lumpur, Iskandar Malaysia and other areas in the country. According to the Valuation and Property Service Department statistics, PBO subsector in Malaysia is expected to receive another 2.04 million sq. m. of new supply between 2013 and 2015, of which an estimated 1.04 million sq. m. or 51% will be in Kuala Lumpur.

RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year.

DISTRIBUTION OF INCOME
The distributions paid and proposed by the Trust since 31 December 2011: In respect of the financial year ended 31 December 2011: Per Unit Gross Net of tax Sen Sen Final income distribution of 3.70 sen per unit paid on 29 February 2012 In respect of financial year ended 31 December 2012: Per Unit Gross Net of tax Sen Sen Interim income distribution of 3.70 sen per unit paid on 30 August 2012 Total Gross RM Net of tax RM Total Gross Net of tax RM RM

3.70

3.70

3,700,000

3,700,000

3.70

3.70

3,700,000

3,700,000

For the financial year ended 31 December 2012, final income distribution of 3.70 sen a unit (tax exempt at the Trust level), amounting to RM3,700,000 to be paid on 28 February 2013, was declared by the Manager and approved by the Trustee on 29 January 2013. The financial statements of the current year do not reflect this proposed distribution. Such distribution will be accounted for as an appropriation of undistributed income in the next reporting period ending 30 June 2013. In general, the Trust has shown a competitive level of income return and was able to meet its objective of providing reasonable level of income return to the investors.

30

Annual Report 2012

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

DISTRIBUTION OF INCOME (CONTD.)
The effect of the final income distributions in terms of the net asset value per unit attributable to unit holders as at 31 December 2012: Before distribution sen Net asset value per unit attributable to unit holders 159.39 After distribution sen 155.69

BREAKDOWN OF UNITHOLDINGS
Percentage of Unit holders (%) 79.16 9.13 9.35 2.30 0.06 100.00 Number of Unitholdings Percentage of Unitholdings (%) 10.31 5.44 15.54 21.11 47.60 100.00

Number of Unitholders Unit Class 5,000 and below 5,001 to 10,000 10,001 to 50,000 50,001 to 500,000 500,001 and above 5,534 638 654 161 4 6,991

10,310,960 5,437,200 15,543,950 21,108,190 47,599,700 100,000,000

DIRECTORS OF THE MANAGER
The directors of the Manager since the date of the last report and at the date of this report are as follows: Tun Ahmad Sarji bin Abdul Hamid Tan Sri Dato’ Sri Hamad Kama Piah bin Che Othman Tan Sri Dato’ Seri Ainum binti Mohd Saaid Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil Dato’ Abd. Wahab bin Maskan Dato’ Idris bin Kechot

Amanah Harta Tanah PNB

31

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

DIRECTORS’ BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Manager or the Trust was a party, whereby the directors might acquire benefits by means of acquisition of shares or debentures of the Manager or any other body corporate or of the acquisition of units of the Trust. Since the end of the previous financial year, no director of the Manager has received or become entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the directors as shown in note to the financial statements of PHNB, or a fixed salary of a full-time employee of PNB) by reason of a contract made by the Manager or the Trust or a related corporation with any director or with a firm of which he is a member, or with a company in which he has substantial financial interest.

DIRECTORS’ INTEREST
According to the register of the Manager directors’ shareholdings, the directors of the Manager who were in office as at 31 December 2012 and have interests in the Trust during the financial year are as follows: Number of Units 1 January 2012 Dato’ Seri Mohd. Hussaini bin Haji Abdul Jamil 12,000 Bought Sold 31 December 2012 12,000

None of the other directors in office at the end of the financial year had any interest in the Trust during the financial year. During and at the end of financial year, no material contracts have been entered into involving any directors and major unit holders.

OTHER STATUTORY INFORMATION
(a) Before the statement of comprehensive income and statement of financial position of the Trust were made out, the Manager took reasonable steps: (i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that there were no known bad debts and that adequate allowance had been made for doubtful debts; and to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected so to realise.

(ii)

32

Annual Report 2012

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

OTHER STATUTORY INFORMATION (CONTD.)
(b) At the date of this report, the Manager is not aware of any circumstances which would render: (i) it necessary to write off any bad debts or the amount of the provision for doubtful debts inadequate to any substantial extent; and the values attributed to the current assets in the financial statements of the Trust misleading.

(ii) (c)

At the date of this report, the Manager is not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Trust misleading or inappropriate. At the date of this report, the Manager is not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Trust which would render any amount stated in the financial statements misleading. At the date of this report, there does not exist: (i) any charge on the assets of the Trust which has arisen since the end of the financial year which secures the liabilities of any other person; or any contingent liability of the Trust which has arisen since the end of the financial year.

(d)

(e)

(ii) (f)

In the opinion of the directors of the Manager: (i) no contingent or other liability of the Trust has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Trust to meet its obligations when they fall due; and no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Trust for the financial year in which this report is made.

(ii)

(g)

Neither the Manager nor its delegates receive any soft commission from its brokers by virtue of transactions transacted by the Trust AHP has not been involved or undertaken any corporate social responsibility (“CSR”) activities or practices. However, PNB Group, the larger entity to which the Manager is part of, is highly committed in a variety of CSR programmes which include education, social and welfare programmes for members of the public.

(h)

Amanah Harta Tanah PNB

33

Manager’s Report On Amanah Harta Tanah PNB
For The Year Ended 31 December 2012 (Contd.)

AUDITORS
The auditors, Messrs. Hanafiah Raslan & Mohamad, have indicated their willingness to continue in office. Signed on behalf of PELABURAN HARTANAH NASIONAL BERHAD in accordance with a resolution of the directors of the Manager dated 29 January 2013.

TUN AHMAD SARJI BIN ABDUL HAMID

TAN SRI DATO’ SRI HAMAD KAMA PIAH BIN CHE OTHMAN

Kuala Lumpur, Malaysia

34

Annual Report 2012

Statement By Manager

We, TUN AHMAD SARJI BIN ABDUL HAMID and TAN SRI DATO’ SRI HAMAD KAMA PIAH BIN CHE OTHMAN, being two of the directors of PELABURAN HARTANAH NASIONAL BERHAD, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 39 to 80 are drawn up in accordance with Malaysian Financial Reporting Standards and the Securities Commission’s Guidelines on Real Estate Investment Trusts and the provisions of the Trust Deed so as to give a true and fair view of the financial position of AMANAH HARTA TANAH PNB as at 31 December 2012 and of its results and the cash flows for the year then ended. Signed on behalf of PELABURAN HARTANAH NASIONAL BERHAD in accordance with a resolution of the directors of the Manager dated 29 January 2013.

TUN AHMAD SARJI BIN ABDUL HAMID

TAN SRI DATO’ SRI HAMAD KAMA PIAH BIN CHE OTHMAN

Kuala Lumpur, Malaysia

Statutory Declaration

I, DATO’ MOHD NIZAM BIN ZAINORDIN, being the officer of the Manager primarily responsible for the financial management of AMANAH HARTA TANAH PNB, do solemnly and sincerely declare that the accompanying financial statements set out on pages 39 to 80 are in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed DATO’ MOHD NIZAM BIN ZAINORDIN at Kuala Lumpur in the Federal Territory on 29 January 2013

DATO’ MOHD NIZAM BIN ZAINORDIN

Before me,

Commissioner for Oaths, Kuala Lumpur, Malaysia

Amanah Harta Tanah PNB

35

Trustee’s Report
For The Year Ended 31 December 2012

To the Unit holders of AMANAH HARTA TANAH PNB We, AMANAHRAYA TRUSTEES BERHAD, have acted as Trustee of AMANAH HARTA TANAH PNB for the financial year ended 31 December 2012. In our opinion, PELABURAN HARTANAH NASIONAL BERHAD, the Manager, has managed AMANAH HARTA TANAH PNB in accordance with the limitations imposed on the investment powers of the management company and the Trustee under the Deed, other provisions of the Deed, the applicable Guidelines on Real Estate Investment Trusts, the Capital Markets and Services Act 2007 and other applicable laws during the financial year then ended. We are of the opinion that: (a) The procedures and processes employed by the Manager to value and/ or price the units of AMANAH HARTA TANAH PNB are adequate and that such valuation/ pricing is carried out in accordance with the Deed and other regulatory requirements; and The distribution of returns made by AMANAH HARTA TANAH PNB as declared by the Manager is in accordance with the investment objective of AMANAH HARTA TANAH PNB.

(b)

Yours faithfully AMANAHRAYA TRUSTEES BERHAD

HABSAH BINTI BAKAR Chief Executive Officer Kuala Lumpur, Malaysia 29 January 2013

36

Annual Report 2012

Independent Auditors’ Report to the unit holders of AMANAH HARTA TANAH PNB

Report on the financial statements
We have audited the financial statements of AMANAH HARTA TANAH PNB (“the Trust”), which comprise the statement of financial position as at 31 December 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 39 to 80.

Manager’s and Trustee’s responsibility for the financial statements
The Manager of the Trust is responsible for the preparation of financial statements that give a true and fair view in accordance with Malaysian Financial Reporting Standards and the Securities Commission’s Guidelines on Real Estate Investment Trusts, and for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Trustee is responsible for ensuring that the Manager maintains proper accounting and other records as are necessary to enable true and fair presentation of these financial statements.

Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Trust’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Malaysian Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the Trust as at 31 December 2012, and of its financial performance, changes in equity and cash flows for the year then ended.

Amanah Harta Tanah PNB

37

Independent Auditors’ Report to the unit holders of AMANAH HARTA TANAH PNB (CONTD.)

Other matters
1. As stated in Note 3 (b) to the financial statements, the Trust adopted Malaysian Financial Reporting Standards on 1 January 2012 with a transition date of 1 January 2011. These standards were applied retrospectively by directors to the comparative information in these financial statements, including the statements of financial position as at 31 December 2011 and 1 January 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended 31 December 2012 and related disclosures. We were not engaged to report on the restated comparative information and it is unaudited. Our responsibilities as part of our audit of the financial statements of the Company for the year ended 31 December 2012 have, in these circumstances, included obtaining sufficient appropriate audit evidence that the opening balances as at 1 January 2012 do not contain misstatements that materially affect the financial position as of 31 December 2012 and financial performance and cash flows for the year then ended. This report is made solely to the unit holders of the Trust, as a body, and for no other purpose. We do not assume responsibility to any other person for the content of this report.

2.

Hanafiah Raslan & Mohamad AF: 0002 Chartered Accountants

Ahmad Zahirudin bin Abdul Rahim No. 2607/12/14(J) Chartered Accountant

Kuala Lumpur, Malaysia 29 January 2013

38

Annual Report 2012

Statement Of Comprehensive Income
For The Year Ended 31 December 2012

Note

2012 RM

2011 RM

INCOME Gross rental income Less: Real estate operating expenditure Depreciation Net rental income Interest income from deposits with financial institutions Gross dividends from investments in: - Real estate-related assets - Non-real estate-related assets Unrealised gain on valuation of real estates Gain on disposals of real estate Net gain/(loss) from financial assets at fair value through profit and loss (“FVTPL”): - Real estate-related assets - Non-real estate-related assets Miscellaneous income 4 5 14,403,463 (5,234,927) (2,853) 9,165,683 360,057 5,282 75,054 2,580,327 300,000 14,965,939 (5,326,330) (1,751) 9,637,858 309,915 5,666 214,788 2,159,873 -

12

13 14

(1,157) 216,091 352 12,701,689

8,338 (117,324) 12,219,114

EXPENSES Management fee Trustee’s fee Auditors’ remuneration Tax agent’s fee Valuation fee Printing, postage and general expenses Financing costs Allowance for impairment of trade receivables 6 7 (1,561,185) (130,000) (13,500) (3,800) (26,150) (85,176) (497,311) (60,408) (2,377,530) 10,324,159 10,324,159 10,324,159 (1,535,575) (130,000) (13,500) (4,100) (32,950) (85,857) (216,380) (99,027) (2,117,389) 10,101,725 10,101,725 10,101,725

8 18

NET INCOME BEFORE TAXATION TAXATION NET INCOME AFTER TAXATION OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME

9

Amanah Harta Tanah PNB

39

Statement Of Comprehensive Income
For The Year Ended 31 December 2012 (Contd.)

Note

2012 RM

2011 RM

NET INCOME AFTER TAXATION IS MADE UP OF THE FOLLOWING: Realised Unrealised

7,559,348 2,764,811 10,324,159 10 10.32 sen

7,938,387 2,163,338 10,101,725 10.10 sen

EARNINGS PER UNIT EARNINGS PER UNIT (BEFORE MANAGEMENT FEE) - Gross of tax - Net of tax NET INCOME DISTRIBUTION Interim income distribution of 3.70 sen per unit (2011: 3.70 sen per unit) paid on 28 August 2012 (2011: 3.70 sen per unit paid on 25 August 2011) Final income distribution of 3.70 sen per unit (2011: 3.70 sen per unit) payable on 28 February 2012 (2011: 3.70 sen per unit paid on 29 February 2012) FINAL INCOME DISTRIBUTION PER UNIT - Gross of tax - Net of tax INTERIM INCOME DISTRIBUTION PER UNIT - Gross of tax - Net of tax

11.89 sen 11.89 sen 11

11.64 sen 11.64 sen

3,700,000

3,700,000

3,700,000 * 11 3.70 sen * 3.70 sen * 11 3.70 sen 3.70 sen

3,700,000

3.70 sen 3.70 sen

3.70 sen 3.70 sen

* Proposed final income distribution for the year ended 31 December 2012.

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

40

Annual Report 2012

Statement Of Financial Position
As At 31 December 2012

Note

31.12.2012 RM

31.12.2011 RM

1.01.2011 RM

INVESTMENTS Real estate Real estate-related assets Non-real estate-related assets Deposits with financial institutions TOTAL INVESTMENTS OTHER ASSETS Equipment, furniture and fittings Tax recoverable Trade receivables Other receivables Cash and bank balances TOTAL OTHER ASSETS TOTAL ASSETS LIABILITIES Financing Rental deposits Other payables Amount due to Manager TOTAL LIABILITIES EQUITY Unit holders’ capital Retained earnings TOTAL EQUITY TOTAL EQUITY AND LIABILITIES NUMBER OF UNITS IN CIRCULATION NET ASSET VALUE (“NAV”) NAV (EX-DISTRIBUTION) PER UNIT 100,000,000 59,392,782 159,392,782 178,566,030 100,000,000 159,392,782 1.5939 100,000,000 56,468,623 156,468,623 171,150,671 100,000,000 156,468,623 1.5647 100,000,000 53,666,898 153,666,898 159,323,571 100,000,000 153,666,898 1.5367 21 22 23 24 14,389,641 3,874,405 774,132 135,070 19,173,248 9,649,096 4,202,646 696,434 133,872 14,682,048 933,689 4,071,624 520,594 130,766 5,656,673 16 17 18 19 20 10,513 665,747 486,371 339,862 102,599 1,605,092 178,566,030 12,486 656,625 519,750 277,177 45,359 1,511,397 171,150,671 1,375 648,076 1,179,168 636,693 183,135 2,648,447 159,323,571 12 13 14 15 161,150,000 219,877 1,778,527 13,812,534 176,960,938 157,800,000 102,439 1,711,257 10,025,578 169,639,274 145,745,000 93,627 1,867,047 8,969,450 156,675,124

25

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

Amanah Harta Tanah PNB

41

Statement Of Changes In Equity
For The Year Ended 31 December 2012

Note

Unit holders’ Capital RM 100,000,000 -

NonDistributable Distributable Realised Unrealised Income Gain RM RM 17,904,274 147,874 7,938,387 35,762,624 (147,874) 2,163,338

Total Equity RM 153,666,898 10,101,725

At 1 January 2011 Transfer to realised income Total comprehensive income for the year Income distribution: Final distribution - 31 December 2010 Interim distribution - 31 December 2011 At 31 December 2011 At 1 January 2012 Transfer to realised income Total comprehensive income for the year Income distribution: Final distribution - 31 December 2011 Interim distribution - 31 December 2012 At 31 December 2012

11 100,000,000 100,000,000 11 100,000,000 (3,700,000) (3,700,000) 19,493,584 39,899,198 (3,700,000) (3,700,000) 159,392,782 (3,600,000) (3,700,000) 18,690,535 18,690,535 643,701 7,559,348 37,778,088 37,778,088 (643,701) 2,764,811 (3,600,000) (3,700,000) 156,468,623 156,468,623 10,324,159

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

42

Annual Report 2012

Statement Of Cash Flows
For The Year Ended 31 December 2012

31.12.2012 RM CASH FLOWS FROM OPERATING ACTIVITIES Income before taxation Adjustments for: Depreciation Allowance for impairment of trade receivables Unrealised gain on valuation of real estate Net gain from financial assets at fair value through profit and loss (“FVTPL”): - Real estate-related assets - Non-real estate-related assets Gain on disposals of real estates Interest income from deposit with financial institutions Gross dividends from investments in: - Real estate-related assets - Non-real estate-related assets Financing costs Operating profit before working capital changes Increase in tax recoverable (Increase)/decrease in receivables Increase in other payables (Decrease)/increase in rental deposits Increase in amount due to the Manager Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Investments in real estate Proceeds from disposal of: - Real estate - Real estate-related assets - Non-real estate-related assets Purchase of fixed assets Purchase of non-real estate related-assets - Real estate-related assets - Non-real estate-related assets Interest received Dividends received from investments in: - Real estate-related assets - Non-real estate-related assets Net cash used in investing activities (4,319,673) 3,785,352 35,821 308,942 (880) (128,565) (185,971) 359,405 10,324,159 2,853 60,408 (2,580,327)

31.12.2011 RM

10,101,725 1,751 99,027 (2,159,873)

1,157 (216,091) (300,000) (360,057) (5,282) (75,054) 497,311 7,349,077 (9,122) (37,285) 77,698 (328,241) 1,198 7,053,325

(8,338) 117,324 (309,915) (5,666) (214,788) 216,380 7,837,627 (8,549) 862,744 175,840 131,022 3,106 9,001,790

(10,445,127) 495,000 58,248 (12,862) (474) (19,784) 314,356

5,282 74,572 (65,715)

5,666 215,022 (9,389,955)

Amanah Harta Tanah PNB

43

Statement Of Cash Flows
For The Year Ended 31 December 2012 (Contd.)

31.12.2012 RM CASH FLOWS FROM FINANCING ACTIVITIES Drawdown from revolving credit facility Financing costs paid Payment of income distributions Net cash (used in)/generated from financing activities NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT END OT THE YEAR CASH AND CASH EQUIVALENTS COMPRISE: Cash and bank balances Deposits with financial institutions (Note 15) 102,599 13,812,534 13,915,133 4,740,545 (483,959) (7,400,000) (3,143,414) 3,844,196 10,070,937 13,915,133

31.12.2011 RM

8,715,407 (108,890) (7,300,000) 1,306,517 918,352 9,152,585 10,070,937

45,359 10,025,578 10,070,937

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

44

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012

1.

THE TRUST, THE MANAGER AND THEIR PRINCIPAL ACTIVITIES
Amanah Harta Tanah PNB (“AHP” or “the Trust”), a Real Estate Investment Trust, was constituted under a Deed of Trust dated 20 March 1989, between the Manager, Pelaburan Hartanah Nasional Berhad (“PHNB”), the Trustee, Amanah Raya Berhad and the several persons who acquire units in the Trust. The Trust was launched on 21 March 1989 and was listed on the Bursa Malaysia Securities Berhad (“Bursa Securities”) on 28 December 1990. The principal activity of the Trust is investment in real estates and other authorised investments with the objectives of achieving steady returns and for long term capital growth. There has been no significant change in the nature of this activity during the year. The Manager, a company incorporated in Malaysia, is a subsidiary company of Permodalan Nasional Berhad (“PNB”). The principal activity of the Manager is the management of real estate investment trusts. There has been no significant change in the nature of this activity during the year. PNB is a company incorporated in Malaysia. Its principal activity is investment holding which is mainly for the purpose of promoting greater ownership of share capital in the corporate sector in Malaysia by the Bumiputera. The financial statements were authorised for issue by the Board of Directors of the Manager in accordance with a resolution of the directors on 29 January 2013.

2.

TERM OF THE TRUST
The Trust will continue its operations until such time as determined by the Trustee and the Manager as provided under the provisions of Clause 23 of the Third Supplemental Deed of Trust of AHP.

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation The financial statements have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”) as issued by Malaysian Accounting Standards Board (“MASB”) and applicable Securities Commission’s Guidelines on Real Estate Investment Trusts. The financial statements comply with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board. The financial statements of the Trust have been prepared under the historical cost convention except for investment in real estate and quoted securities which are stated at fair value.

Amanah Harta Tanah PNB

45

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
(b) First-time adoption of MFRS The financial statements for the year ended 31 December 2012 are the first the Trust has prepared in accordance with MFRS. For periods up to and including the year ended 31 December 2011, the Trust prepared its financial statements in accordance with Financial Reporting Standards (“FRS”). Accordingly, the Trust has prepared financial statements which comply with MFRS applicable for periods ending on or after 31 December 2012, together with the comparative period as at and for the year ended 31 December 2011, as described in the accounting policies. In preparing these financial statements, the Trust’s opening statement of financial position was prepared as at 1 January 2011, the Trust’s date of transition to MFRS. The transition from FRS to MFRS has not had a material impact on the financial statements of the Trust. (c) Financial Assets Financial assets are recognised in the statement of financial position when, and only when, the Trust become a party to the contractual provisions of the financial instrument. When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value through profit or loss, directly attributable transaction costs. The Trust determines the classification of its financial assets at initial recognition, and its financial assets include receivables, deposits with financial institutions, real estate related-assets held at FVTPL, non-real estate related-assets held at FVTPL and, cash and bank balances. (i) Financial assets at FVTPL Investments in equity instruments are classified as at FVTPL, unless the Trust designates an investment that is not held for trading as at fair value through other comprehensive income (FVTOCI) on initial recognition. Debt instruments are reclassified from amortised cost FVTPL when the business model is changed such that the amortised cost criteria are no longer met. Reclassification of debt instruments that are designated as at FVTPL on intial recognition is not allowed. (ii) Loans and receivables Financial assets with fixed or determinable payments that are not quoted in an active market are classified as receivables. The Trust includes short term receivables in this classification. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through the amortisation process.

46

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
(d) Impairment of Financial Assets The Trust assess at each reporting date whether there is any objective evidence that a financial asset is impaired. For trade and other receivables, to determine whether there is objective evidence that an impairment loss on financial assets has been incurred, the Trust considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments. Objective evidence of impairment for a portfolio of receivables could include the past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period and observable changes in national or local economic conditions that correlate with default on receivables. If any such evidence exists, the amount of impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The impairment loss is recognised in profit or loss. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable becomes uncollectible, it is written off against the allowance account. If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss. (e) Financial Liabilities Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability. Financial liabilities, within the scope of MFRS 139, are recognised in the statement of financial position when, and only when, the Trust become a party to the contractual provisions of the financial instrument. Financial liabilities are classified as other financial liabilities. The Trust’s financial liabilities which include trade and other payables are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. A financial liability is derecognised when the obligation under the liability is extinguished. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.

Amanah Harta Tanah PNB

47

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
(f) Equipment, Furniture and Fittings, Computer Equipment and Depreciation Equipment, furniture and fittings are stated at cost less accumulated depreciation and impairment losses. The policy for the recognition and measurement of impairment losses is in accordance with Note 3(n). Depreciation of equipment, furniture and fittings is provided for on a straight line basis to write off the cost of each asset to its residual value over the estimated useful life at the following annual rates: Equipment Furniture and fittings Computer equipment 20% 20% 25%

Upon the disposal of an item of equipment, furniture and fittings, computer equipment the difference between the net disposal proceeds and the carrying amount is charged or credited to the statement of comprehensive income. (g) Real Estate Real estate consist of land and buildings which are stated at fair value at each statement of assets and liabilities date, representing open-market value determined by external valuers. Gains and losses arising from changes in fair values of real estate are recognised in profit or loss for the period in which they arise. Upon the disposal of a real estate, the difference between the net disposal proceeds and the carrying amount is charged or credited to profit or loss. (h) Income Recognition (i) Rental Income Rental income from real estate is accounted for on an accrual basis. (ii) Gross Dividend Income Gross dividend income from quoted shares are recognised on a declared basis, when the right to receive dividends has been established. (iii) Other Income Interest income, car park income and other real estate income are accounted for on an accrual basis.

48

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
(i) Proposed Distribution Proposed distribution is recognised once the obligation to pay has been established. Proposed distribution will be disclosed by way of note to the financial statements and such distribution will be accounted for as an appropriation of undistributed income in the period where the obligation to pay has been established. (j) Cash and Cash Equivalents For the purpose of the statement of cash flows, cash and cash equivalents include cash at bank, deposits at call and short term highly liquid investments which have an insignificant risk of changes in value. (k) Unit holder’s Capital The unit holder’s capital of the Trust meet the definition of puttable instruments classified as equity instruments under the revised MFRS 132 Financial Instruments: Presentation. (l) Segment Reporting For management purposes, the Trust has one operating segment - real estates. The operating results are regularly reviewed by the Manager, who assumes the role of chief operating decision maker, for performance assessment purposes and to make decisions about resources allocated to each investment segment. (m) Income Tax Income tax on the profit or loss for the year comprises current tax. Current tax is the expected amount of income taxes payable in respect of the undistributed taxable profit for the year and is measured using the tax rates that have been enacted at the statement of financial position date. (n) Impairment of Non-financial Assets At each statement of financial position date, the Manager reviews the carrying amounts of the Trust’s non-financial assets other than real estates, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, impairment is measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net selling price and value in use, which is measured by reference to discounted future cash flows. Recoverable amounts are estimated for individual assets or, if it is not possible, for the cash-generating unit to which the asset belongs. An impairment loss is charged to the profit or loss immediately.

Amanah Harta Tanah PNB

49

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
(n) Impairment of Non-financial Assets (Contd.) Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment losses recognised for the asset no longer exist or have decreased. The reversal is recognised to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in profit or loss immediately. (o) Significant Accounting Estimates and Judgements The preparation of the Trust’s financial statements requires the Manager to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability in the future. There are no significant areas of accounting estimation uncertainty and judgments in applying accounting policies that have significant effect on the amounts recognised in the financial statements except as disclosed in note 12 – fair value of real estate.

4.

GROSS RENTAL INCOME
Gross rental income of the Trust consists of the following: 31.12.2012 RM Rental income Other real estate income 14,143,705 259,758 14,403,463 31.12.2011 RM 14,329,607 636,332 14,965,939

Included in the rental income is an amount of RM569,251 (2011: RM570,501) received from related companies as disclosed in Note 29.

50

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

5.

REAL ESTATE OPERATING EXPENDITURE
Included in the amounts are the following: 31.12.2012 RM Maintenance, repairs and improvements expenses Assessment Quit rent Property Manager’s fee* * 892,510 888,293 56,544 132,833 31.12.2011 RM 979,857 889,571 56,640 135,700

The Property Manager, IM Global Property Consultants Sdn Bhd (“IMG”) (2011: Azmi & Co Building Services Sdn. Bhd. (“ACBS”), is entitled to a property management fee in respect of the maintenance of the real estate owned by the Trust, as provided in the Deed of Trust. The fee is based on a certain graduated scale as provided in the Deed of Trust and as prescribed in the revised Valuers, Appraisers and Estate Agents Act 1981 and its rules.

6.

MANAGEMENT FEE
The Manager is entitled to a fee not exceeding 2% per annum of the net asset value of the Trust on each day of the accrual period, as defined in the Deed of Trust. The management fee charged for the year ended 31 December 2012 is 1% (2011: 1%) per annum of the daily net asset value of the Trust. No other fee, commission or initial service charges has been paid or is payable to the Manager.

7.

TRUSTEE’S FEE
The Trustee is entitled to a fee not exceeding 0.1% per annum of the net asset value of the Trust on each day of the accrual period, as defined in the Deed of Trust. The Trustee’s fee charged for the year ended 31 December 2012 is RM 130,000 (2011: RM130,000).

8.

FINANCING COSTS
31.12.2012 RM Interest expense on borrowings 497,311 31.12.2011 RM 216,380

Amanah Harta Tanah PNB

51

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

9.

TAXATION
31.12.2012 RM Tax expense for the year 31.12.2011 RM -

The Trust has been exempted from income tax on all income provided that at least 90% of its total income pursuant to Section 61(A) of the Income Tax Act, 1967 is distributed to the unit holders in the basis period effective from year of assessment 2007. If less than 90% of its total income is distributed, then all the income of the REIT will be subject to tax at 25% . The amount distributed from the REIT will be grossed up to take into account the underlying tax of the REIT and the unit holder will be taxed on the gross distribution at the relevant tax rates. Such distributions carry a tax credit, which will be available for set-off against the income tax chargeable on the unit holder. There is no tax expense for the current financial year as AHP will distribute its entire total chargeable income to tax for the current year of assessment 2012. The Malaysian tax rate is calculated at the statutory tax rate of 25% of the estimated assessable profit for the year. A reconciliation of income tax expense applicable to net income before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the Trust is as follows: 31.12.2012 RM Net income before taxation Taxation at Malaysia statutory tax rate of 25% Effect of income not subject to tax Effect of expenses not deductible for tax purposes Effect of income distribution exempted from tax at Trust level Utilisation of current year capital allowances Tax expense for the year 10,324,159 2,581,040 (863,830) 65,806 (1,743,765) (39,251) 31.12.2011 RM 10,101,725 2,525,431 (590,201) 79,288 (1,961,586) (52,932) -

10.

EARNINGS PER UNIT
The earnings per unit for the year has been calculated by dividing the net income after taxation for the year of RM10,324,159 (2011: RM10,101,725) by the number of units in circulation as at the statement of financial position date of 100,000,000 (2011: 100,000,000).

52

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

11.

INCOME DISTRIBUTION
31.12.2012 Gross RM Interim income distribution of 3.70 sen per unit paid on 30 August 2012 (2011: 3.70 sen per unit paid on 25 August 2011) Final income distribution of 3.70 sen per unit payable on 28 February 2013 (2011: 3.70 sen per unit paid on 29 February 2012) Total distribution for the year Distribution per unit (sen) * Net RM Gross RM 31.12.2011 Net RM

3,700,000

3,700,000

3,700,000

3,700,000

3,700,000 * 7,400,000 7.40

3,700,000 * 7,400,000 7.40

3,700,000 7,400,000 7.40

3,700,000 7,400,000 7.40

For the financial year ended 31 December 2012, final income distribution of 3.70 sen per unit (tax exempt at Trust level), amounting to RM3,700,000 to be paid on 28 February 2013, was declared by the Manager and approved by the Trustee on 29 January 2013. The financial statements for the current year do not reflect this proposed distribution. Such distribution will be accounted for as an appropriation of undistributed income in the next reporting period ending 30 June 2013.

Source of Distribution Distribution to unitholders is from the following sources: 31.12.2012 RM Net rental income Gross dividends from investments in: - Real estate-related assets - Non-real estate-related assets Interest income from deposits with financial institutions Gain on disposals of real estate Less: Expenses Total distribution Gross income distribution per unit (sen) Net income distribution per unit (sen) 9,165,683 5,282 75,054 171,454 9,777,530 (2,377,530) 7,400,000 7.40 7.40 31.12.2011 RM 9,517,389 360,057 9,517,389 (2,117,389) 7,400,000 7.40 7.40

Amanah Harta Tanah PNB

53

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

12.

REAL ESTATE
31.12.2012 RM At 1 January Upgrading and renovation costs Disposals Fair value adjustment At 31 December The following real estates are held under lease terms: 31.12.2012 RM Leasehold land and buildings (at fair value) 31.12.2011 RM 1.01.2011 RM 157,800,000 4,319,673 (3,550,000) 2,580,327 161,150,000 31.12.2011 RM 145,745,000 10,445,127 (550,000) 2,159,873 157,800,000 1.01.2011 RM 143,290,000 1,983,891 (1,460,000) 1,931,109 145,745,000

3,450,000

3,450,000

3,935,000

Details of investment in real estates and basis of valuation are as follows: Cost of Acquisition and Additions RM

Description of Real Estate Plaza VADS, Taman Tun Dr. Ismail, Kuala Lumpur Bangunan AHP, Taman Tun Dr. Ismail, Kuala Lumpur Sri Impian, Taman Setiawangsa, Kuala Lumpur Strata shop office in Butterworth Strata shop office, Asia City, Kota Kinabalu Three storey shop house in Taman Tun Dr. Ismail, Kuala Lumpur

Tenure

Date of Acquisition

Fair Value* RM

Freehold

21/03/1989

68,693,603

100,000,000

Freehold

21/03/1989

33,287,292

42,000,000

Freehold

15/05/1996

13,505,811

11,000,000

Freehold

12/11/1996

965,776

800,000

Leasehold

12/12/1995

1,652,917

1,500,000

Freehold

16/10/1995

909,879

2,800,000

54

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

12.

REAL ESTATE (CONTD.)
Details of investment in real estates and basis of valuation are as follows: (Contd.) Cost of Acquisition and Additions RM

Description of Real Estate

Tenure

Date of Acquisition

Fair Value* RM

Four storey shop office, Pusat Bandar Melawati Kuala Lumpur Four storey shop house, Miri Four storey, shop office, Jalan Rubber, Kuching

Freehold

30/08/1996

814,016

1,100,000

Leasehold

24/05/1996

952,930

950,000

Leasehold

30/8/2002

854,556 121,636,780

1,000,000 161,150,000

*

Fair values as at 31 December 2012 based on valuation dated 1 November 2012 (except for four storey shop in Jalan Rubber, Kuching on 9 August 2012) by independent firms of professional valuers by using the investment methods of valuation in accordance with the Malaysian Valuation Standards. The investment method considers income and expense data relating to the subject property being valued and estimates value through a capitalisation process. Capitalisation relates income (usually net income figure) and a defined value type by converting an income amount into value estimate. This process may consider direct relationship (known as capitalisation rates), yield or discount rates (reflecting measures of return on investment), or both. In general, the principle of substitution holds that the income stream which produces highest return commensurate with a given level of risk leads to the most probable value figure. In arriving at the fair value using the investment method, capitalisation rates ranging from 6.5% to 7.00% and discount rate of 7.00% were applied.

Amanah Harta Tanah PNB

55

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

12.

REAL ESTATE (CONTD.)
The details of the valuers are as follows: Real Estate Name of Firm Name of Valuer and Qualification Sr. Robiah Wan Yusoff Diploma in Estate Management Mara Institute of Technology M.I.S.M., M.M.I.E.A., M.R.I.C.S. Registered Valuer - V476

Plaza VADS, Taman Tun Dr. Ismail, Kuala Lumpur. Bangunan AHP, Taman Tun Dr. Ismail, Kuala Lumpur. Three storey shop house, Taman Tun Dr. Ismail, Kuala Lumpur. Strata shop office, Asia City, Kota Kinabalu, Sabah. Four storey shop office, Pusat Bandar Melawati, Kuala Lumpur. Four storey shop house, Jalan Permaisuri, Miri, Sarawak. Sri Impian, Taman Setiawangsa, Kuala Lumpur. Four storey shop office, Jalan Rubber, Kuching, Sarawak. Strata shop office, Jalan Chainferry, Butterworth, Penang.

Jurunilai Bersekutu Sdn. Bhd.

Azmi & Co Sdn. Bhd.

Mohd Noor Azeni Nordin Advanced Diploma Estate Management, Universiti Teknologi Mara M.I.S.M, P.E.P.S Registered Valuer - V0764

56

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

13.

REAL ESTATE-RELATED ASSETS
31.12.2012 RM Quoted shares, at FVTPL Net (loss)/gain on real estate-related assets at FVTPL during the year comprised: Realised gain on disposals Unrealised changes in fair values 219,877 31.12.2011 RM 102,439 1.01.2011 RM 93,627

3,506 (4,663) (1,157)

8,388 8,388

13,062 13,062

Quoted Shares Asset Value - Real Estate Investment Trusts 85,392

Units RM 160,902

Percentage of Fair Value Fair Over Net Cost Value RM % 219,877 0.14

14.

NON-REAL ESTATE-RELATED ASSETS
31.12.2012 RM Quoted shares, at FVTPL 1,778,527 31.12.2011 RM 1,711,257 1.01.2011 RM 1,867,047

Net (loss)/ gain on real estate-related assets at FVTPL during the year comprised: Realised gain/(loss) on disposals 26,944 Unrealised changes in fair values 189,147 216,091

(112,451) (4,873) (117,324)

51,385 171,559 222,944

Quoted Shares

Units

Cost RM 63,325 382,804 111,698 163,981 763,448 1,485,256

Percentage of Fair Value Fair Over Net Value Asset Value RM % 119,400 512,587 80,340 153,000 913,200 1,778,527 0.08 0.33 0.05 0.10 0.58 1.14

- Consumer products - Finance - Infrastructure project - Plantation - Trading

10,000 55,716 51,500 30,000 94,300 241,516

Amanah Harta Tanah PNB

57

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

15.

DEPOSITS WITH FINANCIAL INSTITUTIONS
31.12.2012 RM Fixed deposits Short term deposits Al Mudharabah deposits 3,085,578 10,726,956 13,812,534 31.12.2011 RM 6,134,693 2,206,771 1,684,114 10,025,578 1.01.2011 RM 2,671,225 4,267,626 2,030,599 8,969,450

The weighted average effective interest/profit rates (“WAEIPR”) per annum and the average maturity of deposits with financial institutions as at the statement of assets and liabilities date were as follows: 31.12.2012 Average WAEIPR Maturity (% p.a.) (Days) 31.12.2011 Average WAEIPR Maturity (% p.a.) (Days) 1.01.2011 Average WAEIPR Maturity (% p.a.) (Days)

Licensed banks

3.14

48

3.32

48

2.97

16

Included in the deposits are the amount of RM806,057 (31.12.2011: RM366,161; 1.01.2011: RM2,094,652) placed with Malayan Banking Berhad (“MBB”), a licensed bank related to the Manager.

16.

EQUIPMENT, FURNITURE AND FITTINGS
Furniture and Fittings RM Computer Equipment RM

Equipment RM Cost At 1 January 2011 Additions At 31 December 2011 Additions At 31 December 2012 Accumulated Depreciation At 1 January 2011 Charge for the year At 31 December 2011 Charge for the year At 31 December 2012 45,900 1,117 47,017 781 47,798 47,248 6,250 53,498 880 54,378

Total RM

53,755 990 54,745 54,745

18,679 5,622 24,301 24,301

119,682 12,862 132,544 880 133,424

53,735 56 53,791 198 53,989

18,672 578 19,250 1,874 21,124

118,307 1,751 120,058 2,853 122,911

58

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

16.

EQUIPMENT, FURNITURE AND FITTINGS (CONTD.)
Furniture and Fittings RM Computer Equipment RM

Equipment RM Net Book Value At 31 December 2012 At 31 December 2011 At 1 January 2011 Depreciation charge for 2012 Depreciation charge for 2011 6,580 6,481 1,348 781 1,117

Total RM

756 954 20 198 56

3,177 5,051 7 1,874 578

10,513 12,486 1,375 2,853 1,751

Included in equipment, furniture and fittings of the Trust are RM117,791 (31.12.2011: RM110,941; 1.01.2011: RM113,291) of cost of fully depreciated assets which are still in use.

17.

TAX RECOVERABLE
The tax recoverable amount represents tax deducted at source on dividend income arising in Malaysia and is recoverable from the Malaysian Inland Revenue Board. The Income Tax Act 1967 was amended on 28 December 2007 to introduce the single tier corporate tax system with effect from the year of assessment 2008. Under the single tier corporate tax system, dividend distribution to shareholders will be exempted from tax. However, there will be a transitional period of six years (year of assessment 2008 to 31 December 2013) to allow companies which meet certain conditions, to continue to pay dividends under a limited (transitional) imputation system. Dividends paid under the limited (transitional) imputation system will be subject to tax in the hands of the shareholders. Shareholders can claim the tax deducted at source on the dividend payment as tax credit. Companies that do not meet the conditions required to pay dividends under the limited (transitional) imputation system will pay dividends under the single tier tax system. With effect from 1 January 2014, all companies will pay dividends under the single tier tax system.

Amanah Harta Tanah PNB

59

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

17.

TAX RECOVERABLE (CONTD.)
The potential impact on the Trust will be as follows: During the transitional period, if the Trust receives dividend income from investee companies which pay dividends under the limited (transitional) imputation system, the Trust can continue to claim the tax deducted at source as a refund from the Malaysian Inland Revenue Board provided that the Trust meets certain conditions. However, since single tier dividends are tax exempt and thus, no tax will be deducted at source on dividend, there will be no tax credit that can be claimed from such dividends received by the Trust.

18.

TRADE RECEIVABLES
31.12.2012 RM Trade receivables Less: Allowance for impairment Trade receivables, net 645,806 (159,435) 486,371 31.12.2011 RM 618,777 (99,027) 519,750 1.01.2011 RM 1,179,168 1,179,168

The Trust’s normal credit term is 30 days. The trade receivables are non-interest bearing. They are recognised at their original invoice amounts which represent their fair values on initial recognition. The Trust has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of debtors. Ageing analysis of trade receivables The ageing analysis of the Trust’s trade receivables is as follows: 31.12.2012 RM Neither past due nor impaired 31 to 60 days past due not impaired 61 to 90 days past due not impaired 91 to 120 days past due not impaired More than 121 days past due not impaired Impaired 162,182 46,513 15,608 2,148 259,920 486,371 159,435 645,806 31.12.2011 RM 224,462 85,092 31,448 17,787 160,961 519,750 99,027 618,777 1.01.2011 RM 862,467 20,354 1,850 1,850 292,647 1,179,168 1,179,168

60

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

18.

TRADE RECEIVABLES (CONTD.)
The Trust’s trade receivables that are impaired at the reporting date are as follows: 31.12.2012 RM Trade receivables Less: Allowance for impairment 159,435 (159,435) 31.12.2011 RM 99,027 (99,027) 1.01.2011 RM -

The movement in the allowance account used to record impairment allowance for trade receivables are as follows: 31.12.2012 RM At 1 January Charge for the year At 31 December Receivables that are neither past due nor impaired Trade receivables that are neither past due nor impaired are creditworthy debtors with good payment records with the Trust. None of the Trust’s trade receivables that are neither past due nor impaired have been renegotiated during the financial year. Receivables that are past due but not impaired The Trust has trade receivables amounting to RM326,936 (31.12.2011: RM354,042; 1.01.2011: RM316,701) that are past due at the reporting date of which RM60,408 (31.12.2011: RM99,027; 1.01.2011:RM nil) was impaired during the financial year. The remaining receivables that are past due but not impaired are expected to be collected in the next 12 months. 99,027 60,408 159,435 31.12.2011 RM 99,027 99,027 1.01.2011 RM -

Amanah Harta Tanah PNB

61

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

19.

OTHER RECEIVABLES
31.12.2012 RM Dividends Interest income Deposits Prepayments Others 1,448 13,888 120,206 204,320 339,862 31.12.2011 RM 966 13,236 120,206 142,769 277,177 1.01.2011 RM 1,200 17,677 151,046 411,770 55,000 636,693

The Trust has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of debtors.

20.

CASH AND BANK BALANCES
Included in the cash and bank balances is an amount of RM13,731 (31.12.2011: RM22,315; 1.01.2011: RM16,603) placed with MBB, a licensed bank related to the Manager.

21.

FINANCING
On 17 July 2008, the Trust obtained an Islamic revolving credit facility of RM65 million from CIMB Islamic Bank Berhad for financing the upgrading and refurbishment of Plaza VADS, which includes the construction of 4-storey podium block. The financing profit rate of 3.97% to 4.05% (31.12.2011: 3.66% to 4.05%; 1.01.2011: 3.35% to 3.72%) per annum. The basis of the profit rate is Costs of Funds + 0.45% per annum. As at 31 December 2012, a total of four drawdowns have been made totaling RM14,389,641 (31.12.2011: RM9,649,096; 1.01.2011: RM933,689). The details of the drawdowns is as follows: Maturity Date Drawdown no. 1 Drawdown no. 2 Drawdown no. 3 Drawdown no. 4 Total 16 April 2013 9 May 2013 19 February 2013 3 June 2013 Amount RM 933,689 2,496,928 6,218,479 4,740,545 14,389,641

62

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

22.

RENTAL DEPOSITS 31.12.2012 RM
Payable within 12 months Payable after 12 months 1,327,172 2,547,233 3,874,405

31.12.2011 RM
1,564,957 2,637,689 4,202,646

1.01.2011 RM
1,369,220 2,702,404 4,071,624

Included in the rental deposit is an amount of RM170,913 (31.12.2011: RM170,913; 1.01.2011: RM215,262) received from companies related to the Manager as disclosed in Note 29.

23.

OTHER PAYABLES
31.12.2012 RM Accruals for real estate operating expenditure Rental received in advance Financing costs payable Sundry payables 157,212 193,280 128,264 295,376 774,132 31.12.2011 RM 253,207 84,238 114,912 244,077 696,434 1.01.2011 RM 218,545 116,314 7,422 178,313 520,594

24.

AMOUNT DUE TO MANAGER The amount due to Manager is unsecured, interest free and repayable on demand.

25.

TOTAL EQUITY
The components of total equity of the Trust as at the statement of financial position date are as follows: Note 31.12.2012 RM 100,000,000 59,392,782 159,392,782 31.12.2011 RM 100,000,000 56,468,623 156,468,623 1.01.2011 RM 100,000,000 53,666,898 153,666,898

Units in circulation Retained earnings

26

Retained earnings is made up of the following: Net realised distributable income Net unrealised non-distributable income 19,493,584 39,899,198 59,392,782 18,690,535 37,778,088 56,468,623 17,904,274 35,762,624 53,666,898

Amanah Harta Tanah PNB

63

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

26.

UNITS IN CIRCULATION
Number of Units 31.12.2011

31.12.2012 Authorised: At end of year

1.01.2011

1,000,000,000

1,000,000,000

1,000,000,000

31.12.2012 Issued and fully paid: At end of year

Number of Units 31.12.2011

1.01.2011

100,000,000

100,000,000 Amount 31.12.2011 RM

100,000,000

31.12.2012 RM Issued and fully paid: At end of year

1.01.2011 RM

100,000,000

100,000,000

100,000,000

As at 31 December 2012, the Manager did not hold any unit in the Trust. However, PNB held 5,063,500 (31.12.2011: 5,063,500; 1.01.2011:5,063,500) units, representing approximately 5.06% (31.12.2011: 5.06%; 1.01.2011: 5.06%) of the total units in issue. Based on market price as at 31 December 2012 of RM1.10 (31.12.2011: RM1.05; 1.01.2011: RM0.99) per unit, the value of units held by PNB was RM5,569,850 (31.12.2011: RM5,316,675; 1.01.2011:RM5,012,865).

27.

NET ASSET VALUE PER UNIT
31.12.2012 Net asset value attributable to unit holders (RM) Number of units issued Net assets value per unit (sen) 159,392,782 100,000,000 159.39 31.12.2011 156,468,623 100,000,000 156.47 1.01.2011 153,666,898 100,000,000 153.67

64

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

28.

TRANSACTIONS WITH STOCKBROKING COMPANIES
During the financial year, the Manager made purchases and sales of investments for the Trust with several stockbroking companies. The details of the transactions are as follows: Percentage of Brokerage Fees % 22.18 25.47 32.55 19.80 100.00

Stock Broker

Value of Percentage of Trade Total Trade RM % 141,030 161,508 206,490 125,700 634,728 22.22 25.45 32.53 19.80 100.00

Brokerage Fees RM 317 364 465 283 1,429

BIMB Securities Sdn Bhd HwangDBS Investment Bank Berhad KAF-Seagroatt & Campbell Securities Sdn Bhd Maybank Investment Bank Bhd. *

Neither PHNB nor PNB has any direct equity holding in the above stockbroking company. * PNB has direct equity holdings in the ultimate holding company of the stockbroking company.

The dealings with the above stockbroking companies has been transacted at arm’s length based on the normal terms in the stockbroking industry.

29.

RELATED PARTY DISCLOSURES
2012 RM Amanah Saham Nasional Berhad (“ASNB”), a wholly-owned subsidiary of PNB - Rental income received - Rental deposits received MBB, a substantial shareholder of the Manager - Rental income received - Interest income from deposit placement - Rental deposits received 2011 RM

308,000 98,600

309,250 98,600

261,251 31,248 72,313

261,251 32,493 72,313

Amanah Harta Tanah PNB

65

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

30.

PORTFOLIO TURNOVER RATIO
2012 Portfolio Turnover Ratio (“PTR”) 0.06 times 2011 0.06 times

PTR is the ratio of the average of acquisitions and disposals of investments for the year to the average net asset value of the Trust, calculated on a yearly basis. Since the average net asset value of the Trust is calculated on a yearly basis, comparison of the PTR of the Trust with other units trusts which use different basis of calculation may not be an accurate comparison.

31.

MANAGEMENT EXPENSE RATIO
2012 Management Expense Ratio (“MER”) 1.51% 2011 1.37%

MER is calculated based on the total fees and expenses incurred by the Trust divided by the average net asset value of the Trust for the year. Since the average net asset value of the Trust is calculated on a yearly basis, comparison of the MER of the Trust with other units trusts which use different basis of calculation may not be an accurate comparison.

32.

SEGMENTAL REPORTING Geographical information The Trust’s assets are located in Malaysia and hence, revenue is generated in Malaysia.

66

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

33.

FINANCIAL INSTRUMENTS
(a) Classification of financial instruments The Trust’s financial assets and financial liabilities are measured on an ongoing basis at either fair value or at amortised cost based on their respective classification. The significant accounting policies in Note 3(d), 3(e) and 3(f) describe how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the financial assets and liabilities of the Trust in the statement of financial position as at 31 December 2012 by the class of financial instrument to which they are assigned, and therefore by the measurement basis. Financial liabilities at amortised cost RM

Financial assets at FVTPL RM 31.12.2012 Assets Quoted equity investments Deposits with financial institution Trade receivables Other receivables Cash and bank balances Total financial assets Total non-financial assets

Loans and Receivables RM

Total RM

1,998,404 1,998,404

13,812,534 486,371 339,861 102,599 14,741,365

-

1,998,404 13,812,534 486,371 339,861 102,599 16,739,769 161,826,260 178,566,029

Liabilities Revolving credit facility Rental deposits Other payables Amount due to Manager

-

-

14,389,641 3,874,405 774,131 135,069 19,173,246

14,389,641 3,874,405 774,131 135,069 19,173,246

Realised gain on disposal of investments Unrealised gain on valuation of investments Dividends Interest income Financing costs

30,450 184,484 80,336 -

360,409 -

(497,311)

30,450 184,484 80,336 360,409 (497,311)

Amanah Harta Tanah PNB

67

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

33.

FINANCIAL INSTRUMENTS (CONTD.)
(a) Classification of financial instruments (Contd.) Financial liabilities at amortised cost RM

Financial assets at FVTPL RM 31.12.2011 Assets Quoted equity investments Deposits with financial institution Trade receivables Other receivables Cash and bank balances Total financial assets Total non-financial assets

Loans and Receivables RM

Total RM

1,813,696 1,813,696

10,025,578 452,962 343,965 45,359 10,867,864

-

1,813,696 10,025,578 452,962 343,965 45,359 12,681,560 158,469,111 171,150,671

Liabilities Revolving credit facility Rental deposits Other payables Amount due to Manager

-

-

9,649,096 4,202,646 696,434 133,872 14,682,048

9,649,096 4,202,646 696,434 133,872 14,682,048

Realised loss on disposal of investments Unrealised gain on valuation of investments Dividends Interest income Financing costs

(112,451) 3,465 220,454 -

309,915 -

(216,380)

(112,451) 3,465 220,454 309,915 (216,380)

68

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

33.

FINANCIAL INSTRUMENTS (CONTD.)
(a) Classification of financial instruments (Contd.) Financial liabilities at amortised cost RM

Financial assets at FVTPL RM 1.01.2011 Assets Quoted equity investments Deposits with financial institution Trade receivables Other receivables Cash and bank balances Total financial assets Total non-financial assets

Loans and Receivables RM

Total RM

1,960,674 1,960,674

8,969,450 976,062 839,799 183,135 10,968,446

-

1,960,674 8,969,450 976,062 839,799 183,135 12,929,120 146,394,451 159,323,571

Liabilities Revolving credit facility Rental deposits Other payables Amount due to Manager

-

-

933,689 4,071,624 520,594 130,766 5,656,673

933,689 4,071,624 520,594 130,766 5,656,673

Realised loss on disposal of investments Unrealised gain on valuation of investments Dividends Interest income Financing costs

51,385 184,621 88,399 -

235,548 -

(23,019)

51,385 184,621 88,399 235,548 (23,019)

Amanah Harta Tanah PNB

69

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

33.

FINANCIAL INSTRUMENTS (CONTD.)
(b) Financial instrument that are carried at fair value The Trust’s financial assets at FVTPL are carried at fair value. The fair values of these financial assets were determined using prices in active markets for identical assets. Quoted equity instruments Fair value is determined directly by reference to their published market bid price at the reporting date. For instruments quoted on Bursa Malaysia, the market bid prices are determined by reference to the theoretical closing market price as published by Bursa Malaysia. (c) Financial instruments that are carried at fair value and whose carrying amounts are reasonable approximation of fair value Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value are as follows (i) (ii) (iii) (iv) (v) Deposits with financial institutions Trade receivables Other receivables/payables Amount due to Manager Revolving credit facility

The carrying amount of these financial assets and liabilities are reasonable approximation of fair values due their short term nature. There are no financial instruments which are not carried at fair values and whose carrying amounts are not reasonable approximation of their respective fair values. The methods and basis for the determination of fair value of the Trust’s financial instruments in the current financial year are consistent with that of the previous financial year.

70

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(a) Introduction The Trust maintains investment portfolios in a variety of listed financial instruments as dictated by its Trust Deed and investment management strategy. The Trust is exposed to a variety of risks including market risk (which includes interest rate risk, and price risk), credit risk, and liquidity risk. Whilst these are the most important types of financial risks inherent in each type of financial instruments, the Manager and the Trustee would like to highlight that this list does not purport to constitute an exhaustive list of all the risks inherent in an investment in the Trust. The Trust’s objective in managing risk is the creation and protection of Unit holders’ value. Risk is inherent in the Trust’s activities, but it is managed through a process of ongoing identification, measurement and monitoring of risks. Financial risk management is also carried out through sound internal control systems and adherence to the investment restrictions as stipulated in the Trust Deed, the Securities Commission’s Guidelines on Real Estate Investments Trusts and the Capital Markets and Services Act, 2007. (b) Risk management structure The Trust’s Manager is responsible for identifying and controlling risks. The Board of Directors of the Manager is ultimately responsible for the overall risk management approach within the Trust. (c) Risk measurement and reporting system Monitoring and controlling risks is primarily set up to be performed based on limits established by the Manager and the Trustee. These limits reflect the investment strategy and market environment of the Trust as well as the level of the risk that Trust is willing to accept. In addition, the Trust monitors and measures the overall risk bearing capacity in relation to the aggregate risk exposure across all risks type and activities. (d) Risk mitigation The Trust has investment guidelines that set out its overall business strategies, its tolerance for risk and its general risk management philosophy. The Manager ensures that the Trust complies with the various regulations and guidelines as stipulated in its Trust Deed, the Securities Commission’s Guidelines on Real Estate Investment Trust and the Capital Markets and Services Act, 2007. It is, and has been throughout the current and previous financial year, the Trust’s policy that no derivatives shall be undertaken for either investment risk management purposes.

Amanah Harta Tanah PNB

71

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(e) Excessive risk concentration Concentration indicates the relative sensitivity of the Trust’s performance to developments affecting a particular industry or geographical location. Concentrations of risk arise when a number of financial instruments or contracts are entered into with the same counterparty, or where a number of counterparties are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. In order to avoid excessive concentration of risk, the Trust’s policies and procedures include specific guidelines to focus on maintaining a diversified portfolio in accordance with the Trust’s Trust Deed, and the Securities Commission’s Guidelines on Real Estate Investment Trusts. Portfolio diversification across a number of sectors and industries minimises the risk not only of any single company’s securities becoming worthless but also of all holdings suffering uniformly adverse business conditions. Specifically, the Trust’s Trust Deed and Securities Commission’s Guidelines on Real Estate Investment Trusts limits the Trust’s exposure to a single entity/industry sector to a certain percentage of its NAV.

(f)

Market risk
Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest rates, foreign exchange rates and equity prices. The maximum risk resulting from financial instruments equals their fair value. (i) Interest rate risk The Trust’s investments in deposits with financial institutions carry fixed interest rates and are usually rolled-over on a daily/month basis. The Trust's revolving credit facility carries floating rate and usually rolled-over on maturity date. Interest rate risk sensitivity The following table demonstrates the sensitivity of the Trust’s profit/(loss) for the year and other comprehensive income to a reasonably possible change in interest rates, with all other variables held constant.

72

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(f) Market risk (Contd.) (i) Interest rate risk (Contd.) Interest rate risk sensitivity (Contd.) The sensitivity is the effect of the assumed changes in interest rates on:


the financing costs for one year, based on the floating rate financial liability held at the end of the reporting period; and changes in fair value of investments for the year, based on revaluing fixed rate financial assets at the end of the reporting period. Sensitivity of interest income and profit Increase/ (decrease) RM 69,063/ (69,063) 71,948/ (71,948)



Sensitivity of other Changes in basis points * 2012

Deposit with financial institution

+50 /-50

Financing 2011

+50 /-50

Deposit with financial institution

+50 /-50

50,128/ (50,128) 48,245/ (48,245)

Deposit with financial institution *

+50/-50

The assumed movement in basis points for interest rate sensitivity is based on the currently observable market environment.

Amanah Harta Tanah PNB

73

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (f) Market risk (Contd.) (ii) Interest rate risk exposure
The following table analyses the Trust’s interest rate risk exposure. The Trust’s assets and liabilities are included at fair value and categorised by maturity dates. Effective Interest rate * %

0-3 months RM 31.12.2012 Assets: Financial assets held at FVTPL Deposits with financial institutions Other assets Total assets Liabilities: Financing Other liabilities Total liabilities Total interest sensitivity gap *

3 months 1 year RM

Non-interest bearing RM

-

-

1,998,404

-

13,438,641 13,438,641

373,893 373,893

927,348 2,925,752

3.15 -

-

14,389,641 14,389,641

4,591,663 4,591,663

3.97 -

13,438,641

(14,015,748)

(1,665,911)

Computed based on interest-bearing assets only

74

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(f) Market risk (Contd.) (ii) Interest rate risk exposure (Contd.) Effective Non-interest bearing RM

0-3 months RM 31.12.2011 Assets: Financial assets held at FVTPL Deposits with financial institutions Other assets Total assets Liabilities: Financing Other liabilities Total liabilities Total interest sensitivity gap 1.01.2011 Assets: Financial assets held at FVTPL Deposits with financial institutions Other assets Total assets Liabilities: Financing Other liabilities Total liabilities Total interest sensitivity gap *

3 months 1 year RM

Interest rate * %

9,163,095 9,163,095

862,483 862,483

1,813,696 784,033 2,597,729

3.32 -

-

9,649,096 9,649,096

4,779,745 4,779,745

4.05 -

9,163,095

(8,786,613)

(2,182,016)

8,253,416 8,253,416

716,034 716,034

1,960,674 1,790,478 3,751,152

2.97 -

-

933,689 933,689

4,504,439 4,504,439

3.72 -

8,253,416

(217,655)

(753,287)

Computed based on interest-bearing assets only

Amanah Harta Tanah PNB

75

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(f) Market risk (Contd.) (iii) Equity price risk Equity price risk is the risk of unfavourable changes in the fair values of equities as the result of changes in the levels of equity indices and the value of individual shares. The equity price risk exposure arises from the Trust’s investments in quoted equity securities. (iv) Equity price sensitivity Management’s best estimate of the effect on the profit/(loss) for the year and other comprehensive income due to a reasonably possible change in equity indices, with all other variables held constant is indicated in the table below: Effects on profit for the year increase/ (decrease) RM

Market index 2012

Changes in equity price %

FTSE Bursa Malaysia KLCI 2011

+10 /-10

199,840 / (199,840)

FTSE Bursa Malaysia KLCI

+10/-10

181,370/ (181,370)

An equivalent decrease in each of the indices shown above would have resulted in an equivalent, but opposite, impact. In practice, the actual trading results may differ from the sensitivity analysis below and the difference could be material. Equity price concentration All the equity investments of the Trust are made in Malaysian entities. The Trust’s concentration of equity price risk analysed by the Trust’s equity instruments by sector is as disclosed in Note 13 and 14.

76

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (g) Credit Risk
Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Trust by failing to discharge an obligation. The Trust is exposed to the risk of credit-related losses that can occur as a result of a tenant and issuer/counterparty or issuer being unable or unwilling to honour its contractual obligations to make timely repayments of interest, principal, settlement of receivables and proceeds from realisation of investments. These credit exposures exist within financing relationships and other transactions. The Manager manages the Trust’s credit risk by undertaking credit evaluation and close monitoring of any changes to the tenant and issuer/counterparty’s credit profile to minimise such risk. It is the Trust’s policy to enter into financial instruments with reputable tenant and counterparties. The Manager also closely monitors the creditworthiness of the Fund’s counterparties e.g., brokers, custodians, banks, etc.

Credit risk exposures
At the reporting date, the Trust’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position. Financial assets that are either past due or impaired Information regarding trade receivables that are either past due or impaired is disclosed in Note 18. (h) Liquidity Risk Liquidity risk is defined as the risk that the Trust will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Exposure to liquidity risk arises because of the possibility that the Fund could be required to pay its liabilities earlier than expected. It is the Trust’s policy that the Manager monitors the Trust’s liquidity position on a daily basis. The Manager’s policy is to always maintain a prudent and sufficient level of liquid assets so as to meet normal operating requirements. Liquid assets comprise cash, deposits with financial institutions and other instruments which are capable of being converted into cash within 7 days. The following table summarises the maturity profile of the Trust’s units in issue (classified as equity instruments) and financial liabilities. Balances due within six months equal their carrying amounts, as the impact of discounting is insignificant. The table also analyses the maturity profile of the Trust’s financial assets (undiscounted where appropriate) in order to provide a complete view of the Trust’s contractual commitments and liquidity.

Amanah Harta Tanah PNB

77

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(h) Liquidity Risk (Contd.) Less than 1 month RM 31.12.2012 Financial assets: Financial assets held at FVTPL Deposits with financial institutions Other assets Total undiscounted financial assets Financial liabilities: Financing Other liabilities Total undiscounted financial liabilities 31.12.2011 Financial assets: Financial assets held at FVTPL Deposits with financial institutions Other assets Total undiscounted financial assets Financial liabilities: Financing Other liabilities Total undiscounted financial liabilities 1 month to 3 months RM 3 months to 1 year RM

Total RM

1,998,404 13,438,641 604,306 16,041,351

373,893 324,042 697,935

-

1,998,404 13,812,534 928,348 16,739,286

4,591,663 4,591,663

-

14,389,641 14,389,641

14,389,641 4,591,663 18,981,304

1,813,696 9,163,095 396,242 11,373,033

862,483 387,791 1,250,274

-

1,813,696 10,025,578 784,033 12,623,307

4,779,745 4,779,745

-

9,649,096 9,649,096

9,649,096 4,779,745 14,428,841

78

Annual Report 2012

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

34.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(h) Liquidity Risk (Contd.) Less than 1 month RM 1.01.2011 Financial assets: Financial assets held at FVTPL Deposits with financial institutions Other assets Total undiscounted financial assets 1 month to 3 months RM 3 months to 1 year RM

Total RM

1,960,674 8,253,416 814,416 11,028,506

716,034 976,062 1,692,096

-

1,960,674 8,969,450 1,790,478 12,720,602

Financial liabilities: Financing Other liabilities Total undiscounted financial liabilities Liquidity gap (i) Financial assets

4,504,439 4,504,439 6,524,067

1,692,096

933,689 933,689 (933,689)

933,689 4,504,439 5,438,128

Analysis of financial assets at fair value through profit or loss into maturity groupings is based on the expected date on which these assets will be realised. Quoted equity instruments have been included in the “Less than 1 month category” on the assumption that these are highly liquid investments which can be realised should all of the Trust’s unit holders’ capital are required to be redeemed. For other assets, the analysis into maturity groupings is based on the remaining period from the end of the reporting period to the contractual maturity date or if earlier, the expected date on which the assets will be realised/maturity dates of the financial assets. (ii) Financial liabilities The maturity grouping is based on the remaining period from the end of the reporting period to the contractual maturity date. When a counterparty has a choice of when the amount is paid, the liability is allocated to the earliest period in which the Trust can be required to pay.

Amanah Harta Tanah PNB

79

Notes To The Financial Statements
For The Year Ended 31 December 2012 (Contd.)

35.

COMPARATIVES
The following comparative amounts have been reclassified to conform with current year presentation: As previously reported RM 452,962 343,965

31.12.2011 Trade receivables Other receivables 1.01.2011 Trade receivables Other receivables

Adjustment RM 66,788 (66,788)

As restated RM 519,750 277,177

976,062 839,799

203,106 (203,106)

1,179,168 636,693

36.

CURRENCY
All amount are stated in Ringgit Malaysia (“RM”).

80

Annual Report 2012

Unit Holders Resource Page

The following information is intended to help you in answering the “What to do?” questions that you may have in managing some of the common issues concerning your investment in AHP.

1.

I am holding unit certificate of Amanah Harta Tanah PNB. What is the status of my units and what should I do?


“Old” unit certificates issued in 1989 (pink in colour) is no longer valid as they have been replaced with “new” certificates (blue in colour) in 1990. If you are holding the “new” unit certificate issued in 1990, it is very likely that your units have been transferred to the Minister of Finance by virtue of Section 29 of the Securities Industry (Central Depositories) (Amendment)(No. 2) Act 1998 (refer to “What if my units have been transferred to the Minister of Finance?”). If you have the “old” certificate but do not have the “new” unit certificate, kindly check your CDS account as you may have already deposited the “new” certificate into your CDS account. There is also possibility that you have sold/transferred the units subsequent to depositing the certificate into your CDS account. It is recommended that you check your records (bank statements, CDS statements, etc) to determine the status of your units before contacting the Share Registrar (Symphony Share Registrars Sdn Bhd). It is very difficult and time consuming for the Share Registrar to check records which are over 7 years old (please note that the Share Registrar in not obligated to keep records which are over 7 years old).







2.

How to update any change in correspondence address?


You simply need to update the details of your CDS account in which your units are deposited into. To update your CDS account details, simply contact your broker or the “CDS Department” of the securities company at which you opened your CDS account. During each income distribution, the Share Registrar will obtain a copy of Record of Depositors (ROD) from Bursa Malaysia Depository Sdn Bhd which contains information such as your name, your CDS account no., correspondence address and the number of AHP units that you have. The data in the ROD corresponds with the details of your CDS account. Thus, by updating your CDS account, the Share Registrar can “obtain” your latest address from the ROD.





Amanah Harta Tanah PNB

81

Unit Holders Resource Page

3.

AHP had made income distribution but I still have not received my income distribution warrant.


If you have not deposited your units into CDS account, your units would have been transferred to the Minister of Finance (refer to “What if my units have been transferred to the Minister of Finance?“). If your correspondence address have changed after the entitlement date of the income distribution, your warrant would have been sent to your old address. Kindly check at your old address or you could also request for a replacement warrant in which case it is treated as lost income distribution warrant (refer to “How do I obtain a replacement income distribution warrant?“). If you have not moved and there is no change in your correspondence address and it has been more than 2 weeks after the payment date of the income distribution, it is highly possible that the warrant is lost in mail and therefore you could contact the Share Registrar for a replacement warrant (refer to “How do I obtain a replacement income distribution warrant?“).





4.

How do I obtain a replacement income distribution warrant?


Contact the Share Registrar (Symphony Share Registrars Sdn Bhd) to request for a replacement warrant. Any request for replacement warrant involves a fee of RM5.00. Contact details of the Share Registrar: SYMPHONY SHARE REGISTRARS SDN BHD LEVEL 6, SYMPHONY HOUSE BLOCK D13, PUSAT DAGANGAN DANA 1 JALAN PJU 1A/46 47301 PETALING JAYA SELANGOR Tel: 03-7841 8000 Fax: 03-7841 8151 / 8152





5.

How do I get my expired/out-dated warrant replaced?


Income distribution warrant is valid for six months from the payment date Expired/out-dated warrants can be replaced by contacting the Share Registrar (refer to “How do I obtain a replacement income distribution warrant?“).



82

Annual Report 2012

Unit Holders Resource Page

6.

What if my units have been transferred to the Minister of Finance?


Under Section 29 of the Securities Industry (Central Depositories) (Amendment)(No. 2) Act 1998, any securities not deposited into CDS account by 1 December 1998 would be transferred to the Minister of Finance. Affected unit holders were given until 1June 1999 to file a claim with the authorities for the recovery of their units. Unit holders who failed to file a claim for recovery, now can only claim for refund of proceeds from the sale of the units by submitting relevant forms and supporting documents to the Jabatan Akauntan Negara (refer to “How to claim for refund of sale proceeds from Jabatan Akauntan Negara?“).





7.

If a unit holder passed-away, what happened to his/her units?


If the units have been deposited into CDS account of the deceased, the units will remain in the account and the duly authorised administrator or beneficiaries can submit application for the units to be transferred into their CDS account (refer to “I am the authorised administrator of the estate of a deceased unit holder. How do I get the units transferred?“). If the units have not been deposited into CDS account, duly authorised administrator or beneficiaries can submit application to the Jabatan Kauntan Negara for refund of proceeds from the disposal of the units (refer to “How to claim for refund of sale proceeds from Jabatan Akauntan Negara”).



8.

I am the authorised administrator of the estate of a deceased unit holder. How do I get the units of the deceased transferred to my CDS account?


If the units are to be transferred to you, you should have a Central Depository System Account (CDS Account) opened in you name. CDS account can be opened at any stock broking companies. A minimal one-time fee of RM10.00 is applicable. If you are in the Klang Valley, you may proceed directly to the Customer Service Counter of Bursa Malaysia (located on the ground floor) to fill-in the relevant forms and submit certified copy of the relevant Letter of Administration or Grant of Probate. If you are outside of Klang Valley, you may submit your application through the stock broking company at which your CDS account is maintained.







Amanah Harta Tanah PNB

83

Unit Holders Resource Page

9.

How to claim for refund of sale proceeds from Jabatan Akauntan Negara?


Obtain Form SPS2 and UMA7 from Jabatan Akauntan Negara or from the Share Registrar (Symphony Share Registrars Sdn Bhd). Duly completed forms and supporting documents should be submitted to: JABATAN AKAUNTAN NEGARA SEKSYEN PENGURUSAN SEKURITI TINGKAT 42, MENARA MAYBANK 100, JALAN TUN PERAK 50050 KUALA LUMPUR Tel: 03-2034 1850 (ext. 119/123/124/125) Faks: 03-2026 7430 Relevant supporting documents: i. Original unit certificate ii. Certified copy of identity card iii. Certified copy of Letter of Administration/Grant of Probate (for deceased case) Additional supporting documents if original unit certificate is lost: i. Confirmation letter from the Share Registrar ii. Copy of newspaper advertisement if value of claim in excess of RM10,000 (contact Jabatan Akauntan Negara to confirm the value of claim) iii. Statutory declaration iv. Original/certified copy of police report v. Form UMA-8 (with RM10 revenue stamp duly endorsed by IRB)







10.

How can I buy/sell units of AHP?


AHP is a real estate investment trust which is listed on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities). As a listed counter, the process of buying/selling units of AHP is similar to those of other listed counters. Buying and selling of units can only be carried out through licensed stock broking companies.





84

Annual Report 2012…...

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...Johnson & Johnson is the leading pharmaceutical company and is included as one of Fortune’s most admired companies for the past 30 years. Johnson & Johnson has a long-standing history that is committed to caring for its consumers since it started. Johnson & Johnson delivers an annual report to depict the company’s performance and growth in the past year and for the future in order to inform shareholders and potential investors. Johnson & Johnson’s annual report uses a visual/verbal strategy of a number of engaging videos to demonstrate quality of products, a verbal strategy of industry details and statistics to show competitive dominance, and visual strategy consisting of family images to convey diversity among consumers. Johnson & Johnson uses a number of engaging videos with personal stories to demonstrate the quality of products and how they care for its consumers. In the video, “Our Safety and Care Commitment,” Susan Nettesheim, vice president of product stewardship, is explaining the new website where consumers can view the ingredient policies and learn about scientific standards of the five level safety assurance programs. She states, “As a leader in scientific research about baby care products for over 100 years, the Johnson & Johnson Family of Consumer Companies pioneered much of the research that our industry relies on.” This information is important to investors because telling this story shows that Johnson & Johnson has a commitment......

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Annual Report

...Annual Report Reports are among an organization’s most important communication tools. They appear in a variety of forms, carry out a number of functions, and ensure the efficient transfer of data (Hynes, 2011). The format of a report can be informal or formal. The more important the information is the more formal it is. One example of a report is the annual report. Annual reports are formal financial statements that are published yearly and sent to company stockholders and various other interested parties (Stittle, 2004). In this report will be a discussion of two organizations, AT&T and Verizon on their format and approach on their annual report. Differences in approach of each organization From reading AT&T and Verizon annual report both companies has a positive approach about their organization for 2012. Their order of information was a direct order by pointing their achievements first. They both started out with their financial highlights showing how well they have done from 2011 to 2012. With Verizon and AT&T report they used bullet points pinpointing there success of the year. Here’s an example of Verizon’s highlights, • $15.3 billion in free cash flow (non-GAAP) • 4.5% growth in operating revenues • 13.2% total shareholder return • 3.0% annual dividend increase Here’s an example of AT&T highlights, • We increased our quarterly dividend for the 29th consecutive year and paid out more than $10 billion in regular quarterly......

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Annual Report

...ANNUAL REPORT 2013 CONTENTS Chairman’s Review Managing Director’s Review Financial Results Board of Directors Senior Management Corporate Governance Statement Financial and Statutory Reports Directors’ Report Financial Report Income Statement Statement of Comprehensive Income Statement of Financial Position Statement of Cash Flows Statement of Changes in Equity Notes to the Financial Statements 1. Summary of Significant Accounting Policies 2. Segment Reporting 3. Revenue 4. Income Statement Disclosures 5. Income Tax Expense 6. Cash and Cash Equivalents 7. Trade and Other Receivables 8. Inventories 9. Other Financial Assets 10. Investment in Joint Venture Entity 11. Investments in Bottlers’ Agreements 12. Property, Plant and Equipment 13. Intangible Assets 14. Impairment Testing of Investments in Bottlers’ Agreements and Intangible Assets with Indefinite Lives 1 2 3 4 6 7 14 14 59 59 60 61 62 63 64 64 72 74 74 76 77 78 79 79 79 80 81 82 83 15. Trade and Other Payables 16. Interest Bearing Liabilities 17. Provisions 18. Deferred Tax Liabilities 19. Defined Benefit Superannuation Plans 20. Share Capital 21. Shares Held by Equity Compensation Plans 22. Reserves 23. Employee Ownership Plans 24. Dividends 25. Earnings Per Share (EPS) 26. Commitments 27. Contingencies 28. Auditors’ Remuneration 29. Business Combinations 30. Key Management Personnel Disclosures 31. Derivatives and Net Debt Reconciliation 32. Capital and Financial Risk Management 33. Related Parties 34. CCA......

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Annual Report

...This is Grameenphone November 11, 1996 Awarded operating license in Bangladesh by the Ministry of Posts and Telecommunications. March 26, 1997 Launched its service on the Independence Day of Bangladesh. November 11, 2009 Successfully listed on the Stock Exchanges in Bangladesh. After fifteen years of operation More than 35 million subscribers and around 87 thousand Shareholders as of December 2011 are now empowered under a single network and touched by the magic of closeness. Annual Report 2011 02/03 More than 35 Million subscribers History & Grameenphone Milestones 2010 Launched New Tariff Plan, ‘MobiCash’ Financial Service Brand, Ekota for SME, Baadhon Package, Mobile Application Development Contest & Network Campaign; Reached 29.97 Million Subscribers 2008 Introduced BlackBerry Service; 2011 Launched ‘My zone’- location based discount on usage, Micro SIM cards for iPhone, Spondon Package with 1-sec pulse; Grameenphone Branded Handset (C200, QWERTY handset ‘Q100’ and Android Handset ‘Crystal’), Customer Experience Lab, eCare solution; Completed swapping of 7,272 nos. of BTS; Reached 36.5 Million Subscribers 2009 Listed on Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.; Launched Internet Modem, Special Olympic Regional Talent Hunt, Stay Green Campaign, Internet Package P5 & P6, Grameenphone Branded Handset & Studyline; Reached 21 Million Subscribers Commissioned Brand Positioning......

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Annual Report

...What is Annual Report? An annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance. The annual report is a report issued to a company's shareholders, creditors, and regulatory organizations following the end of its fiscal year. The report typically contains at least an income statement, balance sheet, statement of cash flows, and accompanying footnotes. It may also contain management comments, an audit report, and various supporting schedules that may be required by regulatory organizations. In addition to the auditor's report, an annual report commonly includes management's review of the operations of the firm and its future prospects, balance sheet, income statement (profit and loss account), cash flow statement, and other supporting documents also called annual accounts. Annual Report and Accounts - Contents – Chairmen’s statement – Directors’ report – Operating and financial review – Review of operations – Statement of corporate governance – Auditors report – Statement of directors’ responsibilities – Shareholder information – Highlights – Historical summary – Shareholder analysis Balance sheet • A balance sheet is a statement of the resources owned and controlled by a business at a single point in time. • It gives a snapshot of assets, liabilities and capital at a......

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...Annual Report Workbook Getting under the hood of an Annual Report and knowing what’s inside by Donald Bittar Introduction You can use this workbook for analyzing many companies and saving your analysis for each one, like many professionals. Just like them, over time, you can compare a company’s actual performance to your analysis and predictions. Saving your analysis sheets can help sharpen you analytical skills. The questions in the workbook are numbered the same way as they are in the book, ‘Getting Under the Hood of an Annual Report’. As there are no questions in the first chapter of the book, the workbook starts with Chapter 2. It will make it easier for you to relate the questions in the workbook to those in the book. Your input to the workbook will appear in a dark green font while the questions appear in blue. The different font colors can make it easier for you to see your work. You’ll need to do some number crunching to complete your annual report analysis. The Big Calculating Tool, located on your CD, can save you a great deal of time and make the number crunching nearly painless. Every ratio and calculation for the book is included in the Big Calculating Tool. You’ll have more time for analysis if you use the Big Calculating Tool. Table of Contents Questions for Chapter 2 4 Question 2.0 – What do you want to learn about company and why? 4 Question 2.1 - Fundamental Information Set For Your Company 4 Question 2.2...

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...of 750 stores around the globe. This seamless system allows UNIQLO to consistently offer its customers high-quality products at reasonable prices. b FAST RETAILING CO., LTD. b UNIQLO(U.K.)LTD. b FAST RETAILING (JIANGSU) APPAREL CO., LTD. b UNIQLO USA, Inc. b FRL Korea Co., Ltd. b UNIQLO HONG KONG, LIMITED b G.U. CO., LTD. b CABIN CO., LTD. (Listed on First Section of the TSE) b Créations Nelson S.A.S. b COMPTOIR DES COTONNIERS JAPAN CO., LTD. b PETIT VEHICULE S.A. b ONEZONE CORPORATION b ASPESI Japan Co., Ltd. b LINK THEORY HOLDINGS CO.,LTD. (Listed on TSE Mothers, Equity-method affiliate) b VIEWCOMPANY CO.,LTD. (Listed on JASDAQ Securities Exchange, Equity-method affiliate) FAST RETAILING ANNUAL REPORT 2006 13 The UNIQLO Business Overview of the UNIQLO Business In Japan’s highly competitive retail market, UNIQLO has positioned large-format stores as its growth driver and is accelerating their opening. Overseas, UNIQLO is carrying on its campaign to become a global brand and opened its first flagship store in New York’s Soho district in 2006. Market Environment In the Japanese economy over the past year, corporate profitability and consumer confidence have improved, but expenditures on apparel have remained sluggish. According to government surveys, consumption expenditures per household for the one-year period to August 2006 were 1.6% lower than for the previous year, while expenditures on apparel were 2.8%......

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