LAPORAN TAHUNAN 2011 ANNUAL REPORT - Takaful Malaysia

Laporan Tahunan 2011 Annual Report

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Nilai-nilai Korporat Corporate Values

Visi & Misi Vision & Mission

Notis Mesyuarat Agung Tahunan ke-27 Notice of 27th Annual General Meeting

Penyata Mengiringi Notis Mesyuarat Agung Tahunan ke-27 Statement Accompanying Notice of 27th Annual General Meeting

012

Ringkasan Kewangan Lima Tahun Five Years Financial Highlights

Struktur Korporat Corporate Structure

Maklumat Korporat Corporate Information

Profil Lembaga Pengarah Board of Directors’ Profile

Profil Badan Penasihat Syariah Shariah Advisory Body’s Profile

Jawatankuasa Pengurusan Management Committee

Laporan Jawatankuasa Audit Audit Committee Report

Penyata Urus Tadbir Korporat Corporate Governance Statement

Maklumat Pematuhan Tambahan Additional Compliance Information

Penyata Kawalan Dalaman Statement on Internal Control

Penyata Pengerusi Chairman’s Statement

Penyata Kewangan Financial Statements

Maklumat Hartanah Particulars of Properties

252

Statistik Pegangan Saham Shareholdings Statistics

256

Rangkaian Cawangan Branch Network Borang Proksi Proxy Form

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INTEGRITI

Komitmen kami terhadap nilai-nilai integriti peribadi dan untuk membina kepercayaan.

Integrity

Our commitment in values of personal integrity and to build trust.

Nilai-nilai Korporat Tunggak khusus jenama Takaful Malaysia adalah melalui nilai-nilai korporat yang terus diperjuangkan melalui usaha-usaha kami.

Corporate Values The defining pillars of the Takaful Malaysia brand are the values that we continuously strive to manifest through our work.

MEMBERI INSPIRASI

Ketabahan untuk terus membangunkan industri kami ke tahap yang berikutnya.

Inspiring

Our perseverance to our continued development of our industry, bringing it to the next level.

KERJA BERPASUKAN Dedikasi terhadap kerja berpasukan adalah bukti perpaduan dan kepercayaan antara satu sama lain.

Teamwork

Our dedication to teamwork is a testament of our unity and trust towards each other.

PROFESIONAL KEMANUSIAAN

Janji kami kepada masyarakat adalah melalui ikrar keprihatinan dan sikap ambil berat.

Humanitarian

Our promise to the community is the pledge of our compassion and care.

Pengorbanan kami adalah melalui pencapaian piawaian dan janji yang kami tunaikan kepada pelanggan kami.

Professional

Our sacrifice to achieve the standards and promises that we deliver to our customers.

Visi “kami Ingin menjadi pilihan utama insurans”

Misi

Matlamat kami adalah untuk melangkaui jangkaan pelanggan melalui: • Kecemerlangan Operasi • Kebolehan Dalam Daya Saing Teknologi • Inovasi Produk • Budaya Kerja Berorientasikan Prestasi Dalam usaha meningkatkan nilai pemegang-pemegang saham

Vision “We want to be the preferred choice for insurance”

Mission

We aim to exceed customers’ expectations through: • Operational Excellence • Technology Driven Capabilities • Product Innovation • Performance Oriented Culture Whilst delivering superior shareholders’ value

06

Syarikat Takaful Malaysia Berhad (131646-K) • Laporan Tahunan 2011 Annual Report

Notis Mesyuarat Agung Tahunan ke-27

Notice of 27th Annual General Meeting

DENGAN INI DIMAKLUMKAN bahawa MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD YANG KEDUA PULUH TUJUH (27) akan diadakan di Dewan Ahmad Mohamed Ibrahim, Tingkat 5, Blok Annex, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur pada hari Khamis, 3 Mei 2012, jam 10:00 pagi bagi tujuan-tujuan berikut:

NOTICE IS HEREBY GIVEN that the TWENTY SEVENTH (27TH) ANNUAL GENERAL MEETING of SYARIKAT TAKAFUL MALAYSIA BERHAD will be held at Dewan Ahmad Mohamed Ibrahim, 5th Floor, Annexe Block, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur on Thursday, 3 May 2012, at 10:00 a.m. for the following purposes:

SEBAGAI URUSAN BIASA

AS ORDINARY BUSINESS

1. Untuk menerima Penyata-penyata Kewangan Beraudit bagi tahun kewangan berakhir 31 Disember 2011, berserta laporan Pengarah dan Juruaudit berkaitan dengannya. (Resolusi 1)

1. To receive the Audited Financial Statements for the financial year ended 31 December 2011, together with the reports of the Directors and Auditors thereon. (Resolution 1)

2. Untuk meluluskan dividen akhir sebanyak 10% tier tunggal bagi tahun kewangan berakhir 31 Disember 2011. (Resolusi 2)

2. To approve a final dividend of 10% single tier in respect of the financial year ended 31 December 2011. (Resolution 2)

3. Untuk melantik semula Pengarah-pengarah berikut yang bersara menurut Artikel 62 Tataurusan Pertubuhan Syarikat:

3. To re-elect the following Directors, each of whom retires pursuant to Article 62 of the Company’s Articles of Association:

3.1 Puan Rozaida Omar

(Resolusi 3)

3.2 Y. Bhg. Dato’ Paduka Ismee Ismail (Resolusi 4) 4. Untuk meluluskan bayaran yuran Pengarah-pengarah sebanyak RM579,000 bagi tahun kewangan berakhir 31 Disember 2011. (RM721,000 bagi tempoh kewangan lapan belas (18) bulan berakhir 31 Disember 2010). (Resolusi 5) 5. Untuk meluluskan bayaran yuran Ahli-ahli Badan Penasihat Syariah sebanyak RM167,000 bagi tahun kewangan berakhir 31 Disember 2011. (RM153,000 bagi tempoh kewangan lapan belas (18) bulan berakhir 31 Disember 2010). (Resolusi 6)

3.1 Puan Rozaida Omar

(Resolution 3)

3.2 Y. Bhg. Dato’ Paduka Ismee Ismail

(Resolution 4)

4. To approve the payment of the Directors’ fees of RM579,000 for the financial year ended 31 December 2011. (RM721,000 for eighteen (18) months financial period ended 31 December 2010). (Resolution 5) 5. To approve the payment of Shariah Advisory Body Members’ fees of RM167,000 for the financial year ended 31 December 2011. (RM153,000 for eighteen (18) months financial period ended 31 December 2010). (Resolution 6)

6. Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran Juruaudit. (Resolusi 7)

6. To re-appoint Messrs KPMG Desa Megat & Co. as the Auditors of the Company and to authorise the Directors to fix their remuneration. (Resolution 7)

SEBAGAI URUSAN KHAS

AS SPECIAL BUSINESS

7. Resolusi Biasa – Cadangan Mandat Pemegang-pemegang Saham bagi Urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan dengan BIMB Holdings Berhad dan subsidiari-subsidiarinya (“Kumpulan BHB”).

7. Ordinary Resolution – Proposed Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature with BIMB Holdings Berhad and its Subsidiaries (“BHB Group”).




“BAHAWA, tertakluk kepada pematuhan dengan Keperluan Penyenaraian Bursa Malaysia Securities Berhad, Akta Syarikat 1965, Memorandum dan Tataurusan Pertubuhan Syarikat dan semua undang-undang, peraturan dan garis panduan yang berkaitan, kelulusan dengan ini diberikan kepada Syarikat dan subsidiari-subsidiarinya (“Kumpulan Takaful Malaysia”) untuk memeterai Urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan dengan Kumpulan BHB yang perlu bagi operasi harian Kumpulan Takaful Malaysia seperti yang dinyatakan dalam Seksyen 2.1.3 Pekeliling kepada Para Pemegang Saham bertarikh 10 April 2012 (“Pekeliling”), dengan syarat bahawa:

(a) urusniaga tersebut adalah dalam urusan biasa perniagaan dan mengikut terma yang tidak lebih memihak kepada pihak berkaitan berbanding yang secara umumnya tersedia kepada orang ramai dan mengikut terma yang tidak menjejaskan para pemegang saham minoriti Syarikat; (b) urusniaga dilaksanakan secara tulus dan mengikut terma komersial biasa; dan

(c) penzahiran akan dibuat dalam laporan tahunan dengan pecahan nilai agregat urus niaga yang dijalankan menurut mandat pada tahun kewangan.

DAN BAHAWA kelulusan tersebut akan bermula serta-merta setelah resolusi ini diluluskan dan akan terus berkuatkuasa sehingga:

(a) tamat mesyuarat agung tahunan Syarikat yang akan datang, di mana mandat tersebut akan luput, melainkan kuasa tersebut diperbaharui melalui satu resolusi yang diluluskan dalam mesyuarat tersebut;

(b) tamat tempoh di mana mesyuarat agung tahunan berikutnya selepas tarikh ia dikehendaki untuk diadakan menurut Seksyen 143(1) Akta Syarikat, 1965 (“AS”) (tetapi tidak melebihi penangguhan seperti yang dibenarkan menurut Seksyen 143(2) AS); atau

(c) dibatalkan atau dipinda melalui resolusi yang diluluskan oleh pemegang saham dalam mesyuarat agung,

yang mana lebih awal”.

“THAT, subject to compliance with the Listing Requirements of Bursa Malaysia Securities Berhad, Companies Act 1965, Memorandum and Articles of Association of the Company and all other applicable laws, rules, regulations and guidelines, approval be and is hereby given to the Company and its subsidiaries (“Takaful Malaysia Group”) to enter into the Recurrent Related Party Transactions of a revenue or trading nature with the BHB Group which are necessary for the day to day operations of the Takaful Malaysia Group as set out in Section 2.1.3 of the Circular to Shareholders dated 10 April 2012 (“Circular”), provided that:

(a) the transactions are in the ordinary course of business and are on terms which are not more favourable to the related parties than those generally available to the public and on terms not to the detriment of the minority shareholders of the Company;

(b) the transactions are made at arm’s length and on normal commercial terms; and

(c) the disclosure will be made in the annual report with the breakdown of the aggregate value of the transactions conducted pursuant to the mandate during the financial year.

AND THAT such authority shall commence immediately upon the passing of this resolution and shall continue to be in force until:

(a) the conclusion of the next annual general meeting of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is renewed;

(b) the expiration of the period within which the next annual general meeting after the date that it is required to be held pursuant to Section 143(1) of the Companies Act, 1965 (“CA”) (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of CA); or

(c) revoked or varied by resolution passed by the shareholders in a general meeting,

(Resolusi 8)

whichever is the earlier”.

(Resolution 8)

07

08




8. Resolusi Khas - Cadangan Pindaan kepada Tataurusan Pertubuhan Syarikat.

8. Special Resolution – Proposed Amendments to the Company’s Articles of Association.

“BAHAWA pembatalan, pemindaan, pengubahsuaian dan/ atau penambahan kepada Tataurusan Pertubuhan Syarikat Takaful Malaysia Berhad seperti yang dinyatakan di dalam Lampiran I Pekeliling kepada Pemegang Saham bertarikh 10 April 2012 adalah dengan ini diluluskan.” (Resolusi 9) 9. Untuk melaksanakan sebarang urusan yang mana notis sewajarnya telah diberi.

“THAT the deletions, alterations, modifications and/or additions to the Articles of Association of Syarikat Takaful Malaysia Berhad as set out in Appendix I of the Circular to Shareholders dated 10 April 2012 be and hereby approved.” (Resolution 9) 9. To transact any other business for which due notice has been given.

NOTIS SETERUSNYA DENGAN INI DIBERI BAHAWA untuk tujuan menentukan ahli yang akan layak untuk menghadiri AGM yang ke-27, Syarikat akan membuat permohonan kepada Bursa Malaysia Depository Sdn Bhd, selaras dengan Artikel 41(f)(ii) Tataurusan Pertubuhan Syarikat dan Seksyen 34(1) Akta Perindustrian Sekuriti (Depositori Pusat) 1991, untuk menerbitkan Rekod Pendeposit Mesyuarat Agung pada 26 April 2012. Hanya pendeposit yang namanya tersenarai di dalam Rekod Pendeposit pada 26 April 2012 sahaja berhak untuk menghadiri mesyuarat atau melantik proksi untuk menghadiri dan/atau mengundi bagi pihaknya.

FURTHER NOTICE IS HEREBY GIVEN THAT for the purpose of determining a member who shall be entitled to attend this 27th AGM, the Company shall be requesting Bursa Malaysia Depository Sdn Bhd, in accordance with Article 41(f)(ii) of the Company’s Articles of Association and Section 34(1) of the Securities Industry (Central Depositories) Act 1991, to issue a General Meeting Record of Depositors as at 26 April 2012. Only a depositor whose name appears on the Record of Depositors as at 26 April 2012 shall be entitled to attend the said meeting or appoint proxies to attend and/or vote on his/her behalf.

NOTIS PENERIMAAN DAN PEMBAYARAN DIVIDEN

NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT

NOTIS DENGAN INI JUGA DIBERI BAHAWA dividen akhir sebanyak 10% tier tunggal bagi tahun kewangan berakhir 31 Disember 2011, akan dibayar pada 28 Mei 2012 kepada para Pendeposit yang berdaftar di dalam Rekod Pendeposit pada penutupan perniagaan pada 9 Mei 2012.

NOTICE IS ALSO HEREBY GIVEN THAT a final dividend of 10% single tier in respect of the financial year ended 31 December 2011 will be paid on 28 May 2012 to Depositors registered in the Record of Depositors at the close of business on 9 May 2012.

NOTIS SETERUSNYA DENGAN INI JUGA DIBERI BAHAWA seorang Pendeposit adalah layak untuk menerima dividen hanya dalam keadaan:

FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall qualify for entitlement to the dividend only in respect of:

(a) Saham yang telah dipindahkan ke dalam Akaun Sekuriti Pendeposit sebelum 4:00 petang pada 9 Mei 2012 berhubung pindahan; dan

(a) Shares transferred into the Depositor’s Securities Account before 4:00 p.m. on 9 May 2012 in respect of transfers; and

(b) Saham yang dibeli di Bursa Malaysia Securities Berhad dengan asas kelayakan menurut Peraturan Bursa Malaysia Securities Berhad.

(b) Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Berhad.

Atas Arahan Lembaga Pengarah MOHAMAD ASRI HAJI YUSOFF (MIA 14171) Setiausaha Syarikat Kuala Lumpur 10 April 2012

By Order of the Board MOHAMAD ASRI HAJI YUSOFF (MIA 14171) Company Secretary Kuala Lumpur 10 April 2012




Nota:

Notes:

1. Pelantikan Proksi

1. Appointment of Proxy

(i) Seorang ahli yang berhak hadir untuk mengundi dalam mesyuarat itu layak untuk melantik seorang atau beberapa orang proksi untuk hadir dan mengundi bagi pihaknya dan haruslah menyatakan bahagian sahamnya yang diwakili oleh setiap proksi dan proksi itu tidak semestinya seorang ahli Syarikat.

(i) A member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend and to vote instead of him and shall specify the proportions of his holdings to be represented by each proxy and a proxy need not be a member of the Company.

(ii) Suratcara pelantikan proksi bagi individu hendaklah ditandatangani oleh pelantik atau peguamnya dan dalam hal perbadanan, ia mestilah dimeterai atau ditandatangani oleh seorang pegawai atau peguamnya yang telah diberi kuasa sewajarnya.

(ii) The instrument appointing a proxy in the case of an individual shall be signed by the appointer or his attorney and in the case of a corporation, must be under seal or under the hand of an officer or attorney duly authorised.

(iii) The instrument appointing a proxy must be deposited at the Registered Office of the Company at Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur not less than fortyeight (48) hours before the time for holding the meeting or any adjournment thereof.

(iii) Suratcara pelantikan seorang proksi mestilah dihantar ke Pejabat Berdaftar Syarikat di Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur, tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya.

2. Nota Penerangan Kepada Urusniaga Khas

(i) Cadangan Mandat Pemegang-pemegang Saham bagi Urusniaga-urusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan

Cadangan Resolusi No. 8, jika diluluskan, akan memberi kuasa kepada Syarikat untuk melaksanakan Urusniagaurusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan yang perlu bagi operasi harian Kumpulan Takaful Malaysia dan akan menghapuskan keperluan untuk menjalankan mesyuarat agung yang berasingan dari masa ke semasa untuk mendapatkan kelulusan para pemegang saham. Butiran Cadangan Mandat Pemegang-pemegang Saham bagi Urusniagaurusniaga yang Berulang dengan Pihak Berkaitan Berbentuk Hasil atau Perdagangan ada dinyatakan di dalam Pekeliling kepada Pemegang Saham bertarikh 10 April 2012.

(ii) Cadangan Syarikat

Pindaan

kepada

Tataurusan

2. Explanatory Notes on Special Business

Pertubuhan

Resolusi No. 9 yang dicadangkan adalah diperlukan untuk membolehkan Syarikat mematuhi pindaan kepada Keperluan Penyenaraian yang dikeluarkan oleh Bursa Malaysia Securities Berhad pada 22 September 2011 serta selaras dengan Seksyen 149 (1) (c) dan (d) Akta Syarikat 1965 dan Rangka Kerja Urus Tadbir Syariah bagi Institusi Kewangan Islam yang dikeluarkan oleh Bank Negara Malaysia. Butirbutir mengenai cadangan pindaan kepada Tataurusan Pertubuhan Syarikat dinyatakan di dalam Pekeliling kepada Pemegang Saham bertarikh 10 April 2012.

(i) Proposed Shareholders’ Mandate for Recurrent Related Party Transaction of a Revenue or Trading Nature

The proposed Resolution No. 8, if passed, will empower the Company to conduct recurrent related party transactions of a revenue or trading in nature which are necessary for Takaful Malaysia Group’s day to day operations and will eliminate the need to convene separate general meetings from time to time to seek shareholders’ approval. The details on the Proposed Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature are set out in the Circular to Shareholders dated 10 April 2012.

(ii) Proposed Amendments to the Company’s Articles of Association

The proposed Resolution No. 9 is required to enable the Company to comply with the amendments to the Listing Requirements issued by Bursa Malaysia Securities Berhad on 22 September 2011 as well as to be in line with Section 149(1)(c) and (d) of the Companies Act 1965 and the Shariah Governance Framework for Islamic Financial Institutions issued by Bank Negara Malaysia. The details on the proposed amendments to the Company’s Articles of Association are set out in the Circular to Shareholders dated 10 April 2012.

09

010


Penyata Mengiringi Notis Mesyuarat Agung Tahunan Kedua Puluh Tujuh mengikut Perenggan 8.27 (2) Keperluan Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad Tiada individu yang dilantik sebagai Pengarah (selain daripada pengarah yang bersedia untuk dilantik semula iaitu Puan Rozaida Omar dan Y. Bhg. Dato’ Paduka Ismee Ismail) dalam Mesyuarat Agung Tahunan Syarikat Takaful Malaysia Berhad yang Kedua Puluh Tujuh akan datang.

Statement Accompanying Notice Of Twenty Seventh Annual General Meeting pursuant to Paragraph 8.27 (2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad There is no individual standing for election as Director (other than directors standing for re-election i.e. Puan Rozaida Omar and Y. Bhg. Dato’ Paduka Ismee Ismail) at this forthcoming Twenty Seventh Annual General Meeting of Syarikat Takaful Malaysia Berhad.

012


Ringkasan Kewangan Lima Tahun

Five Years Financial Highlights

Jumlah Kasar Sumbangan Takaful (RM ’000)/ Total Gross Takaful Contributions (RM ’000)

Takaful Keluarga/Family Takaful Syarikat/Company

Kumpulan/Group 2007

558,570

2007

470,205

2008

655,890

2008

538,546

2009

524,867

2009

433,007

2010*

839,909

2010*

679,831

2011

699,344

2011

567,736

Takaful Am/General Takaful Syarikat/Company

Kumpulan/Group 2007

346,370

2007

306,620

2008

269,104

2008

208,041

2009

352,851

2009

276,294

2010*

606,354

2010*

499,491

2011

441,889

2011

383,316

Jumlah Aset (RM ’000)/Total Assets (RM’000) Syarikat/Company

Kumpulan/Group 2007

3,481,540

2007

3,291,290

2008

4,047,299

2008

3,796,260

2009

4,614,840

2009

4,306,063

2010*

5,272,584

2010*

4,873,387

2011

5,883,924

2011

5,477,717


Ringkasan Kewangan Lima Tahun

Five Years Financial Highlights

Keuntungan Sebelum Cukai Selepas Zakat (RM ’000)/Profit Before Taxation After Zakat (RM ’000) Kumpulan/Group

Syarikat/Company

2007

21,626

2007

14,361

2008

33,860

2008

42,660

2009

48,853

2009

45,325

2010*

97,370

2010*

92,664

2011

100,685

2011

93,484

Pulangan atas Ekuiti (%)/ Return on Equity (%)

Dividen yang Dibayar/Dicadangkan (Ditolak Cukai) (RM ’000)/ Dividend Paid/Proposed (Net of Taxation) (RM ’000)

2007

7.5

2007

2008

10.3

2008

8,437

2009

12.0

2009

8,853

2010*

10.2

2010*

17,096

2011

18.4

2011

25,644

Aset Bersih Sesaham (RM)/ Net Assets Per Share (RM)

Pendapatan Sesaham (RM)/ Earnings Per Share (RM)

2007

1.90

2007

13.50

2008

1.88

2008

18.70

2009

2.15

2009

24.20

2010*

2.37

2010*

34.60

2011

2.76

2011

47.20

* 18 months financial period

013

014


Struktur Korporat

Corporate Structure

Syarikat-Syarikat Subsidiari / Subsidiary Companies

56.00%

63.09%

P.T. SYARIKAT

52.67%

57.24%

47.08%

42.73%


Maklumat Korporat

Corporate Information

LEMBAGA PENGARAH / BOARD OF DIRECTORS

BADAN PENASIHAT SYARIAH / SHARIAH ADVISORY BODY

Pengerusi / Chairman

Pengerusi / Chairman

Y. Bhg. Dato’ Paduka Ismee Ismail Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon

Ahli-ahli / Members

Y. Bhg. Ustaz Mohd. Bakir Hj. Mansor Y. Bhg. Datuk Abdul Hamid Said (Bersara pada 1 April 2011 / Retired on 1 April 2011) Y. Bhg. Dr. Aida Othman Y. Bhg. Prof. Madya Dr. Muhamad Rahimi Osman Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz (Dilantik pada 1 Jun 2011 / Appointed on 1 June 2011)

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil Pengarah Urusan Kumpulan / Group Managing Director Puan Rozaida Omar Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director Encik Mahadzir Azizan Pengarah Bukan Eksekutif Bebas Kanan / Senior Independent Non-Executive Director

Ahli-ahli / Members

Setiausaha / Secretary Encik Mohamad Asri Hj. Yusoff

JAWATANKUASA AUDIT / AUDIT COMMITTEE Y. Bhg. Dato’ Sulaiman Mohd Yusof Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director Encik Johan Abdullah Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director Encik Zakaria Ismail Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

Setiausaha / Secretary Encik Mohamad Asri Hj. Yusoff (MIA 14171)

Encik Mahadzir Azizan Pengerusi / Chairman Puan Rozaida Omar Y. Bhg. Dato’ Sulaiman Mohd Yusof Encik Zakaria Ismail

JAWATANKUASA PEMILIHAN / NOMINATION COMMITTEE Encik Zakaria Ismail Pengerusi / Chairman Puan Rozaida Omar Y. Bhg. Dato’ Sulaiman Mohd Yusof Encik Johan Abdullah Encik Mahadzir Azizan

JAWATANKUASA GANJARAN / REMUNERATION COMMITTEE Encik Mahadzir Azizan Pengerusi / Chairman Encik Johan Abdullah Encik Zakaria Ismail

015

016


Maklumat Korporat

Corporate Information

JAWATANKUASA PENGURUSAN RISIKO / RISK MANAGEMENT COMMITTEE Encik Zakaria Ismail Pengerusi / Chairman Encik Mahadzir Azizan Encik Johan Abdullah Y. Bhg. Dato’ Sulaiman Mohd Yusof

JURUAUDIT / AUDITORS KPMG Desa Megat & Co. (AF0759) Chartered Accountants Level 10, KPMG Tower 8, First Avenue Bandar Utama 47800 Petaling Jaya Selangor Darul Ehsan Tel : +603-7721 3388 Fax : +603-7721 3399

PENGURUSAN / MANAGEMENT Y. Bhg. Dato’ Mohamed Hassan Md. Kamil Pengarah Urusan Kumpulan / Group Managing Director Encik Lee Hin Sze Ketua Pegawai Kewangan / Chief Financial Officer Puan Azian Kassim Ketua Pegawai Pelaburan / Chief Investment Officer Encik Nazrul Hisham Abdul Hamid Ketua Pegawai Audit Dalaman / Chief Internal Auditor Encik Leem Why Chong Pengurus Besar, Aktuari & Aktuari Dilantik / General Manager, Actuarial & Appointed Actuary Encik Mohd Suhaimi Ahmad Pengurus Besar, Agensi Runcit / General Manager, Retail Agency

PEJABAT BERDAFTAR / REGISTERED OFFICE Tingkat 26, Blok Annex Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur Tel : +603-2268 1984 Fax : +603-2274 2864 Email : [email protected] Website : takaful-malaysia.com.my

PENDAFTAR / REGISTRAR

Encik Mark Anthony Nathan Pengurus Besar, Bankatakaful / General Manager, Bancatakaful

Symphony Share Registrars Sdn Bhd (378993-D) Level 6, Symphony House Pusat Dagangan Dana 1 Jalan PJU 1A/46 47301 Petaling Jaya Selangor Tel : +603-7841 8000 Fax : +603-7841 8151/52 Helpdesk Line : +603-7849 0777 Website : www.symphony.com.my

KETUA PEGAWAI EKSEKUTIF BAGI SYARIKAT SUBSIDIARI / CHIEF EXECUTIVE OFFICER OF SUBSIDIARY COMPANY

TEMPAT DITUBUHKAN DAN DOMISIL / PLACE OF INCORPORATION AND DOMICILE

Encik Izzuddin Tajudin Ketua Pegawai Eksekutif, Asean Retakaful International (L) Ltd / Chief Executive Officer, Asean Retakaful International (L) Ltd

Malaysia

Puan Shuhaibahtulaslamiah Hurmuzan Pengurus Besar, Sumber Manusia / General Manager, Human Resource Encik Patrick Wong Chang Yang Ketua Pegawai Informasi / Chief Information Officer

PENYENARAIAN BURSA / BURSA LISTING Pasaran Utama / Main Market Bursa Malaysia Securities Berhad

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Profil Lembaga Pengarah

Board of Directors’ Profile

Y. Bhg. Dato’ Paduka Ismee Ismail Pengerusi / Chairman

Y. Bhg. Dato’ Paduka Ismee Ismail, berusia 47 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengerusi Bukan Eksekutif Bukan Bebas Takaful Malaysia pada 16 Disember 2009.

Y. Bhg. Dato’ Paduka Ismee Ismail, aged 47, is a Malaysian citizen and was appointed to the Board on 16 December 2009 as a Non-Independent Non-Executive Chairman of Takaful Malaysia.

Beliau adalah ahli fellow Chartered Institute of Management Accountants (CIMA) dan ahli Institut Akauntan Malaysia (MIA).

He is a fellow member of Chartered Institute of Management Accountants (CIMA) and a member of the Malaysian Institute of Accountants (MIA).

Beliau kini merupakan Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif Lembaga Tabung Haji. Sebelum itu, beliau merupakan Ketua Pegawai Eksekutif ECM Libra Securities Sdn Bhd dan Pengarah ECM Libra Capital Sdn Bhd. Beliau juga pernah berkhidmat dengan beberapa organisasi dalam pelbagai kapasiti antaranya selaku Pengurus Besar Kanan Kewangan, Lembaga Tabung Haji; Ketua Akauntan di Pengurusan Danaharta Nasional Berhad; Pengurus Besar Pembangunan Perniagaan di Arab Malaysian Development Berhad dan beberapa jawatan berkaitan kewangan di Shell Malaysia Trading Sdn Bhd. Beliau juga adalah Pengarah BIMB Holdings Berhad, Bank Islam Malaysia Berhad, TH Plantations Berhad, KFC Holdings (Malaysia) Berhad dan beberapa syarikat lain. Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri sembilan (9) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2011.

He is currently the Group Managing Director and Chief Executive Officer of Lembaga Tabung Haji. Prior to that, he was the Chief Executive Officer of ECM Libra Securities Sdn Bhd and a Director of ECM Libra Capital Sdn Bhd. He has also served several organisations in various capacities including that of Senior General Manager of Finance, Lembaga Tabung Haji; Chief Accountant at Pengurusan Danaharta Nasional Berhad; General Manager of Business Development at Arab Malaysian Development Berhad and has held several finance-related positions at Shell Malaysia Trading Sdn Bhd. He is also a Director of BIMB Holdings Berhad, Bank Islam Malaysia Berhad, TH Plantations Berhad, KFC Holdings (Malaysia) Berhad and several other companies. He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended nine (9) Board of Directors’ meetings held during the financial year ended 31 December 2011.




Y. Bhg. Dato’ Mohamed Hassan Md. Kamil Pengarah Urusan Kumpulan / Group Managing Director

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil, berusia 49 tahun, adalah warganegara Malaysia dan dilantik ke Lembaga Pengarah Takaful Malaysia pada 1 September 2006 sebagai Pengarah Bukan Eksekutif Bukan Bebas. Beliau kini adalah Pengarah Urusan Kumpulan bagi Takaful Malaysia sejak 1 April 2007. Beliau juga merupakan Pengerusi Lembaga Komisaris P.T. Syarikat Takaful Indonesia dan P.T. Asuransi Takaful keluarga.

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil, aged 49, is a Malaysian citizen and was appointed to the Board of Takaful Malaysia on 1 September 2006 as a Non-Independent NonExecutive Director. He is currently the Group Managing Director of Takaful Malaysia since 1 April 2007. He is also the Chairman of the Board of Commissioners of P.T. Syarikat Takaful Indonesia and P.T. Asuransi Takaful Keluarga.

Beliau merupakan graduan Sarjana Muda Sains dalam bidang Sains Aktuari dan Sarjana Pentadbiran Perniagaan dari University of Iowa, USA. Beliau juga adalah Fellow of the Society of Actuaries, USA, ahli American Academy of Actuaries dan Chartered Life Underwriter.

He graduated with a Bachelor of Science degree in Actuarial Science and Master in Business Administration from the University of Iowa, USA. He is a Fellow of the Society of Actuaries, USA, a member of the American Academy of Actuaries and a Chartered Life Underwriter.

Beliau telah bekerja di Amerika Syarikat sebagai Aktuari dari tahun 1987 hingga 1994 sebelum pulang ke Malaysia sebagai Timbalan Pengurus Besar di Malaysia National Insurance. Pada tahun 1996, beliau menyertai ING Insurance Berhad (sebelum ini dikenali sebagai Aetna Universal Insurance) sebagai Naib Presiden Kanan dan Ketua Aktuari. Pada tahun 2004, beliau menjadi Timbalan Pengurus Besar bagi P.T. AIA Indonesia.

He worked in the United States as an Actuary from 1987 to 1994 prior to returning to Malaysia as Deputy General Manager at Malaysia National Insurance. In 1996, he joined ING Insurance Berhad (previously known as Aetna Universal Insurance) as Senior Vice President and Chief Actuary. In 2004, he became the Deputy General Manager for P.T. AIA Indonesia.

Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri sembilan (9) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2011.

He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended nine (9) Board of Directors’ meetings held during the financial year ended 31 December 2011.

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Puan Rozaida Omar Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director

Puan Rozaida Omar, berusia 49 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengarah Bukan Eksekutif Bukan Bebas Takaful Malaysia pada 15 Mei 2007. Beliau juga merupakan ahli Jawatankuasa Audit dan Jawatankuasa Pemilihan. Beliau adalah Akauntan Bertauliah (M) dan merupakan ahli Association of Chartered Certified Accountants (ACCA) United Kingdom sejak tahun 1986. Beliau memulakan kerjayanya sebagai Akauntan Kewangan di FELDA pada tahun 1986. Pada tahun 1990, beliau menjadi Pengurus Kredit di Citibank Berhad sehingga tahun 1991. Beliau kemudiannya menyertai Guthrie Trading Sdn Bhd pada tahun 1992 sebagai Pengurus Kewangan sehingga tahun 1993. Selepas itu, beliau menjadi Pengarah Kewangan di Glaxo SmithKline Consumer Healthcare Sdn Bhd dari tahun 1994 sehingga tahun 2003. Kini beliau adalah Ketua Pegawai Kewangan Kumpulan di Lembaga Tabung Haji sejak tahun 2004. Beliau juga merupakan Pengarah Pelikan International Corporation Berhad dan BIMB Holdings Berhad. Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa- apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri lapan (8) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2011.

Puan Rozaida Omar, aged 49, is a Malaysian citizen and is a Non-Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 May 2007. She is also a member of the Audit Committee and Nomination Committee. She is a Chartered Accountant (M) and a member of the Association of Chartered Certified Accountants (ACCA) United Kingdom since 1986. She started her career as a Financial Accountant at FELDA in 1986. In 1990, she became a Credit Manager at Citibank Berhad until 1991. She then joined Guthrie Trading Sdn Bhd in 1992 as a Finance Manager until 1993. After that, she became a Finance Director of Glaxo SmithKline Consumer Healthcare Sdn Bhd from 1994 until 2003. She is currently the Group Chief Financial Officer of Lembaga Tabung Haji since 2004. She is also a Director of Pelikan International Corporation Berhad and BIMB Holdings Berhad. She has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. She has no conviction for offences within the past ten (10) years and has attended eight (8) Board of Directors’ meetings held during the financial year ended 31 December 2011.




Encik Mahadzir Azizan Pengarah Bukan Eksekutif Bebas Kanan / Senior Independent Non-Executive Director

Encik Mahadzir Azizan, berusia 63 tahun, adalah warganegara Malaysia yang telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Takaful Malaysia pada 1 September 2007. Beliau telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Kanan pada 2 Jun 2011. Beliau juga merupakan Pengerusi Jawatankuasa Audit dan Jawatankuasa Ganjaran dan ahli Jawatankuasa Pengurusan Risiko dan Jawatankuasa Pemilihan. Beliau juga merupakan ahli Lembaga Komisaris P. T. Asuransi Takaful Keluarga.

Encik Mahadzir Azizan, aged 63, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia who was appointed to the Board on 1 September 2007. He was appointed as Senior Independent Non-Executive Director on 2 June 2011. He is also the Chairman of the Audit Committee and Remuneration Committee and a member of Risk Management Committee and Nomination Committee. He is also a member of the Board of Commissioners of P.T. Asuransi Takaful Keluarga.

Beliau memperolehi kelulusan Barrister-At-Law dari Lincoln’s Inn, London, United Kingdom dan diterima masuk ke English Bar pada tahun 1978.

He is a Barrister-At-Law from Lincoln’s Inn, London, United Kingdom and was called to the English Bar in 1978.

Beliau telah memegang pelbagai jawatan penting di dalam sektor awam dan swasta. Selepas tamat pengajian, beliau telah menyertai perkhidmatan Perundangan dan Kehakiman Kerajaan Malaysia sebagai Timbalan Pendakwaraya Awam dan Penasihat Undang-Undang. Beliau kemudiannya menyertai sektor swasta dan berkhidmat di Malaysian International Shipping Corporation (“MISC”) dan Island & Peninsular Berhad, syarikat hartanah Permodalan Nasional Berhad (“PNB”) selama 24 tahun. Semasa di sektor swasta, beliau juga telah berkhidmat sebagai Ahli Majlis MARA dan juga sebagai Pengarah di pelbagai syarikat berkaitan Kerajaan. Kini, beliau merupakan Pengarah ECM Libra Financial Group Berhad, ECM Libra Investment Bank Berhad, Avenue Invest Berhad dan beberapa syarikat lain. Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri sembilan (9) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2011.

He has held key positions both in private and public sector. After graduation, he joined the Judicial and Legal Service of the Malaysian Government as a Deputy Public Prosecutor and Federal Counsel and subsequently ventured into the private sector and served Malaysian International Shipping Corporation (“MISC”) and Island & Peninsular Berhad, the property arm of Permodalan Nasional Berhad (“PNB”) for 24 years. Whilst in the private sector, he also served as Ahli Majlis MARA as well as various other directorships in government linked companies. Currently, he is also a Director of ECM Libra Financial Group Berhad, ECM Libra Investment Bank Berhad, Avenue Invest Berhad and several other companies. He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended nine (9) Board of Directors’ meetings held during the financial year ended 31 December 2011.

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Y. Bhg. Dato ’ Sulaiman Mohd Yusof Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

Y. Bhg. Dato’ Sulaiman Mohd Yusof, berusia 61 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Takaful Malaysia pada 1 Januari 2008. Beliau merupakan ahli Jawatankuasa Audit, Jawatankuasa Pemilihan dan Jawatankuasa Pengurusan Risiko. Beliau juga merupakan Pengerusi Asean Retakaful International (L) Ltd. Beliau memperolehi Ijazah Sarjana Muda Undang-undang (LLB) dari University of Buckingham, United Kingdom pada tahun 1984 dan diterima masuk ke Malaysian Bar pada tahun 1986. Beliau memulakan kerjayanya sebagai Pelatih Wartawan Kadet dengan Agensi Berita Bernama pada tahun 1969. Seterusnya pada tahun yang sama, beliau menyertai Polis Di Raja Malaysia. Beliau menjawat pelbagai jawatan dalam Polis Di Raja Malaysia seperti Timbalan Superitendan Personel, Setiausaha yang bertanggungjawab kepada Ketua Polis Negara, Tun Haniff Omar, Pegawai Polis Daerah Sentul, Alor Setar dan Sungai Petani dan Penolong Pesuruhjaya Penyelidikan dan Perancangan di Bukit Aman. Pada tahun 2002, beliau menjadi Timbalan Pengarah Pengurusan (Disiplin), Timbalan Pengarah Jabatan Narkotik pada tahun 2003, Ketua Polis Negeri Sembilan pada tahun 2004, Timbalan Pengarah, Jabatan Siasatan Jenayah Komersial pada tahun 2005 dan sebagai Ketua Polis Kuala Lumpur pada tahun 2006 sehingga persaraan beliau. Pada bulan April 2007, beliau membuka syarikat guamannya sendiri, sekarang ini dikenali sebagai Sulaiman, Jamellah & Clement. Beliau juga merupakan Pengarah, AWC Berhad dan beberapa syarikat sendirian berhad yang lain. Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri sembilan (9) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2011.

Y. Bhg. Dato’ Sulaiman Mohd Yusof, aged 61, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 1 January 2008. He is a member of the Audit Committee, Nomination Committee and Risk Management Committee. He is also the Chairman of Asean Retakaful International (L) Ltd. He graduated with a Bachelor of Law (LLB) degree from the University of Buckingham, United Kingdom in 1984 and was called to the Malaysian Bar in 1986. He started his career as a Cadet Reporter Trainee with Bernama News Agency in 1969. Later in the same year, he joined Royal Malaysia Police. He assumed various positions at the Royal Malaysia Police such as Deputy Superintendent of Personnel, Secretary responsible for the IGP, Tun Haniff Omar, Police Officer for District of Sentul, Alor Setar and Sungai Petani and Assistant Commissioner of Research and Planning at Bukit Aman. In 2002, he became the Deputy Director, Management (Discipline), in 2003 as Deputy Director, Narcotics Department, in 2004 as the Chief Police Officer of Negeri Sembilan, in 2005 as Deputy Director, Commercial Crime Investigation Department and in 2006 as the Chief Police Officer of Kuala Lumpur until his retirement. In April 2007, he started his own legal firm, currently known as Sulaiman, Jamellah & Clement. He is also a Director of AWC Berhad and other private limited companies. He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended nine (9) Board of Directors’ meetings held during the financial year ended 31 December 2011.




Encik Johan AbduLlah Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director

Encik Johan Abdullah, berusia 55 tahun, adalah warganegara Malaysia dan merupakan Pengarah Bukan Eksekutif Bukan Bebas Takaful Malaysia dan telah dilantik pada 15 Ogos 2008. Beliau juga merupakan ahli Jawatankuasa Pemilihan, Jawatankuasa Pengurusan Risiko dan Jawatankuasa Ganjaran.

Encik Johan Abdullah, aged 55, is a Malaysian citizen and is a Non-Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 August 2008. He is also a member of the Nomination Committee, Risk Management Committee and Remuneration Committee.

Beliau memperolehi Diploma Perbankan dari Universiti Teknologi MARA, Shah Alam pada tahun 1983, Ijazah Sarjana Muda Pentadbiran Perniagaan (Kewangan) dari Eastern Michigan University, USA pada tahun 1985 dan Ijazah Sarjana Pentadbiran Perniagaan (Kewangan) dari Morehead State University, USA pada tahun 1986.

He obtained a Diploma in Banking from University Technology MARA, Shah Alam in 1983, a Bachelor of Business Administration (Finance) from Eastern Michigan University, USA in 1985 and a Master in Business Administration (Finance) from Morehead State University, USA in 1986.

Beliau memulakan kerjaya profesionalnya pada tahun 1987 di Kuala Lumpur Stock Exchange (sekarang ini dikenali sebagai Bursa Malaysia Securities Berhad) sebagai Pegawai Penyenaraian. Pada tahun 1989, beliau menyertai bahagian Kewangan Korporat di Bumiputra Merchant Bankers Berhad dan meletak jawatan pada awal tahun 1995 sebagai Pengurus Kanan. Beliau kemudiannya menyertai Damansara Realty Berhad sebagai Pengurus Besar, Perancangan Korporat. Seterusnya pada tahun 1999, beliau menyertai semula Bursa Malaysia Securities Berhad dan telah memegang pelbagai jawatan kanan termasuk Deputy Chief Regulatory Officer, Group Regulation. Pada bulan Mei 2008, beliau menyertai BIMB Holdings Berhad (“BHB”) sebagai Pengarah Urusan Kumpulan/Ketua Pegawai Eksekutif. Beliau juga merupakan Pengarah Bank Islam Malaysia Berhad dan anak-anak syarikat di dalam kumpulan BHB.

He started his professional career in 1987 with Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities Berhad) as Listing Officer. In 1989, he joined Corporate Finance division of Bumiputra Merchant Bankers Berhad and left the bank in early 1995 as Senior Manager. Later he joined Damansara Realty Berhad as General Manager, Corporate Planning. Subsequently in the year 1999, he re-joined Bursa Malaysia Securities Berhad and took up various senior positions including that of Deputy Chief Regulatory Officer, Group Regulation. In May 2008, he joined BIMB Holdings Berhad (“BHB”) as the Group Managing Director/Chief Executive Officer. He is also a director of Bank Islam Malaysia Berhad and other subsidiaries within BHB Group.



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Encik Zakaria Ismail Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

Encik Zakaria Ismail, berusia 60 tahun, adalah warganegara Malaysia dan merupakan Pengarah Bukan Eksekutif Bebas Takaful Malaysia dan telah dilantik pada 15 Mei 2010. Beliau merupakan Pengerusi Jawatankuasa Pemilihan dan Jawatankuasa Pengurusan Risiko dan ahli Jawatankuasa Audit dan Jawatankuasa Ganjaran.

Encik Zakaria Ismail, aged 60, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 May 2010. He is the Chairman of the Nomination Committee and Risk Management Committee and a member of Audit Committee and Remuneration Committee.

Beliau memperolehi Ijazah Sarjana Muda Ekonomi (Kepujian) dari Universiti Malaya pada tahun 1974 dan Sarjana Pentadbiran Perniagaan dan Sarjana Sastera dalam Ekonomi dari Universiti Boston, Amerika Syarikat, masing-masing pada tahun 1981 dan 1983. Beliau juga merupakan ahli bersekutu The Institute of Bankers, London.

He obtained his Bachelor of Economics (Honours) from the University of Malaya in 1974, and Master in Business Administration and Master of Arts in Economics from Boston University, USA in 1981 and 1983 respectively. He is also an associate of The Institute of Bankers, London.

Beliau memulakan kerjayanya di Bank Negara Malaysia (BNM) pada tahun 1974 dan memegang pelbagai jawatan seperti Eksekutif Kanan, Penyeliaan Perbankan; Setiausaha Sulit, Pejabat Gabenor, Eksekutif Kanan, Ekonomi; Penolong kepada Pengarah Eksekutif, South East Asia Group IMF, di Washington, D.C Amerika Syarikat; Pengurus, Ekonomi; Pengurus, Penyeliaan Perbankan; Timbalan Pengarah, Pelaburan; Timbalan Pengarah, Penyeliaan Perbankan; Pengarah, Penyeliaan Perbankan; Pengarah, Penyeliaan Insurans dan Pengarah, Pengawalan Insurans. Beliau telah dipinjamkan sebagai Pengarah Urusan di Entrepreneurs Rehabilitation Fund (ERF) pada tahun 2002 sehingga 2004 dan seterusnya dipinjamkan sebagai Pengarah Latihan dan Pentadbiran di The South East Asian Central Banks Research and Training Centre (SEACEN) pada tahun 2004 sehingga persaraan beliau pada tahun 2007. Beliau juga merupakan ahli Lembaga Pengarah di Malaysian Insurance Institute (MII) dan ahli EXCO MII dari tahun 2000 sehingga 2002. Kini, beliau merupakan ahli Lembaga Pengarah Export-Import Bank of Malaysia Berhad.

He started his career with Bank Negara Malaysia (BNM) in 1974 and assumed various positions such as Senior Executive, Banking Supervision; Private Secretary, Office of the Governor; Senior Executive, Economics; Assistant to the Executive Director, South East Asia Group IMF, in Washington, D.C. USA; Manager, Economics; Manager, Banking Supervision; Deputy Director, Investment; Deputy Director, Banking Supervision; Director, Banking Supervision; Director, Insurance Supervision and Director, Insurance Regulation. He was seconded to the Entrepreneurs Rehabilitation Fund (ERF) as its Managing Director in 2002 until 2004 and then was seconded to The South East Asian Central Banks Research and Training Centre (SEACEN) as its Director of Training and Administration from 2004 until his retirement in 2007. He was also a Board member of the Malaysian Insurance Institute (MII) and member of the EXCO of MII from 2000 until 2002. Currently, he is also a Board member of Export-Import Bank of Malaysia Berhad.




Profil Badan Penasihat Syariah

Shariah Advisory Body’s Profile

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon Pengerusi / Chairman

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon, berusia 69 tahun, adalah warganegara Malaysia dan merupakan Pengerusi Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 1 Julai 1985.

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon, aged 69, is a Malaysian citizen and is the Chairman of the Shariah Advisory Body (SAB) of Takaful Malaysia who was appointed on 1 July 1985.

Beliau memperolehi Ijazah Sarjana Muda Sastera dalam Syariah, dari Universiti Al–Azhar, Mesir pada tahun 1970, Sarjana Sastera dalam Pengajian Antarabangsa dari Universiti Fairleigh Dickenson, Amerika Syarikat pada tahun 1973 dan kemudian melanjutkan pengajian di peringkat Ijazah Doktor Falsafah dalam Sejarah di Universiti New York, Amerika Syarikat pada tahun 1979.

He graduated with a Bachelor of Arts degree in Shariah from the University of Al-Azhar, Egypt in 1970, a Master of Arts in International Studies from Fairleigh Dickenson University, USA in 1973 and a Doctor of Philosophy in History from New York University, USA in 1979.

Beliau memulakan kerjayanya pada tahun 1978 sebagai Pensyarah di Jabatan Syariah, Fakulti Pengajian Islam, Universiti Kebangsaan Malaysia (UKM) sebelum dipinjamkan ke Universiti Islam Antarabangsa (UIAM) dari tahun 1983 hingga 1984. Semasa di UKM, beliau telah dilantik sebagai Penyelaras bagi Pendidikan Umum dari tahun 1981 hingga 1982. Pada tahun 1982, beliau berkhidmat sebagai Pemangku Ketua Jabatan Syariah. Beliau juga merupakan Penyelaras Program Diploma dan Sijil Pengajian Islam UKM sehingga tahun 1983. Beliau kembali ke UKM pada tahun 1984 sebagai Pensyarah di Jabatan Syariah sehingga tahun 1985. Kemudian beliau menjadi Pengarah Eksekutif Pusat Rawatan Islam (MAIS) dari tahun 1996 hingga 1999. Kini, beliau merupakan Pengerusi Pusrawi Corporation Sdn Bhd dan ahli Majlis Perundingan Islam di Jabatan Perdana Menteri (JPM). Beliau telah menghasilkan tulisan dalam bidang pendidikan, ekonomi, perbankan Islam dan perundangan Islam sebanyak 12 buah buku, 7 jilid terjemahan, 300 skrip tv dan 40 kertas kerja. Beliau juga dianugerahkan sebagai ‘Tokoh Ulamak Bestari Negeri Selangor’ pada tahun 2000, ‘Tokoh Ma’al Hijrah Negeri Selangor’ pada tahun 2001 dan Ahli Majlis Agama Islam Negeri Selangor selama 21 tahun.

He started his career in 1978 as a Lecturer at the Shariah Department, Faculty of Islamic Studies, Universiti Kebangsaan Malaysia (UKM) prior to his secondment to the International Islamic University Malaysia (IIUM) from 1983 to 1984. Whilst with UKM, he was appointed as the Coordinator for the General Teachings from 1981 to 1982. In 1982, he served as the Acting Head of the Shariah Department. He was also the Programme Coordinator for Diploma and Certificate in Islamic Studies of UKM until 1983. He returned to UKM in 1984 as a Lecturer in the Shariah Department until 1985. He then became an Executive Director of Pusat Rawatan Islam (MAIS) from 1996 to 1999. Currently, he is the Chairman of Pusrawi Corporation Sdn Bhd and a member of the Islamic Consultative Council in the Prime Minister’s Department. He has produced writings in educational, economy, Islamic banking and Islamic law, a total of 12 books, 7 translation bindery, 300 tv scripts and 40 paper works. He was also awarded ‘Tokoh Ulamak Bestari Negeri Selangor’ in 2000, ‘Tokoh Ma’al Hijrah Negeri Selangor’ in 2001 and a member of Religious Council of Selangor State for 21 years.

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Y. Bhg. Ustaz Mohd Bakir Hj. Mansor Ahli / Member

Y. Bhg. Ustaz Mohd Bakir Hj. Mansor, berusia 75 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 1 Julai 2002. Beliau memperolehi Shahadah Ulya (Sijil Tertinggi) dari Kolej Islam Malaya pada tahun 1967. Beliau telah memulakan kerjayanya sebagai guru sementara di Madrasah Mashhoor Islamiyah, Pulau Pinang dari tahun 1967 hingga 1970. Beliau kemudiannya berkhidmat sebagai Pegawai Penerangan sementara di Majlis Kebangsaan Hal Ehwal Agama Islam Malaysia mulai tahun 1971 hingga 1973; sebagai Pegawai Hal Ehwal Islam di Bahagian Hal Ehwal Islam, Jabatan Perdana Menteri dari tahun 1973 hingga 1977; sebagai Pegawai Perancangan Pendidikan Ugama di Jabatan Kemajuan Masyarakat, Kementerian Pertanian dari tahun 1978 hingga 1980; sebagai Penolong Pengarah Dokumentasi di Bahagian Hal Ehwal Islam, Jabatan Perdana Menteri mulai tahun 1980 hingga 1981 dan sebagai seorang Ketua Penolong Pengarah Pusat Penyelidikan Islam dari tahun 1981 hingga 1984. Beliau kemudiannya berkhidmat dengan Bank Islam Malaysia Berhad sebagai Koordinator Syariah merangkap Setiausaha Majlis Pengawasan Syariah Bank dari tahun 1984 hingga 2001. Beliau pernah berkhidmat sebagai Internal Research Fellow for the Centre of Fiqh Muamalat di Institut Perbankan dan Kewangan Islam Malaysia (IBFIM) dari 2 Januari 2001 hingga 30 Jun 2009. Beliau kini merupakan Penasihat Syariah Ternama di Pusat Fiqh Muamalat berkuatkuasa dari 1 Julai 2009. Beliau juga adalah ahli Majlis Pengawasan Syariah Bank Islam Malaysia Berhad, ahli Jawatankuasa Panel Syariah Amanah Ikhtiar Malaysia, Pengerusi Jawatankuasa Penasihat Syariah BIMB Securities Sdn Bhd, Pengerusi Jawatankuasa Penasihat Syariah Persatuan Institusi-Institusi Perbankan Islam Malaysia dan Pengerusi Jawatankuasa Penasihat Syariah Kumpulan Wang Simpanan Pekerja. Sebelum dilantik sebagai ahli BPS Takaful Malaysia pada 1 Julai 2002, beliau adalah Setiausaha BPS Takaful Malaysia sejak ia ditubuhkan pada tahun 1985 hingga Disember 2001.

Y. Bhg. Ustaz Mohd Bakir Hj. Mansor, aged 75, is a Malaysian citizen and is a member of the Shariah Advisory Body (SAB) of Takaful Malaysia who was appointed on 1 July 2002. He obtained the Shahadah Ulya (Highest Certificate) from Kolej Islam Malaya in 1967. He started his career as a temporary teacher at Madrasah Mashhoor Islamiyah, Pulau Pinang from 1967 to 1970. He then served as a temporary Information Officer at the National Council for Islamic Religious Affairs Malaysia from 1971 to 1973; as an Islamic Affairs Officer at the Islamic Affairs Division, the Prime Minister’s Department from 1973 to 1977; as the Religious Education Planning Officer at the Community Development Department, Ministry of Agriculture from 1978 to 1980; as an Assistant Documentation Director at the Islamic Affairs Division, the Prime Minister’s Department from 1980 to 1981 and as a Chief Assistant Director of Islamic Research Centre from 1981 to 1984. He then served at Bank Islam Malaysia Berhad as Shariah Coordinator cum Secretary to the Bank’s Shariah Supervisory Council from 1984 to 2001. He was previously an Internal Research Fellow for the Centre of Fiqh Muamalat at Islamic Banking and Finance Institute Malaysia (IBFIM) from 2 January 2001 until 30 June 2009. He is currently a Distinguished Shariah Advisor for the Centre of Fiqh Muamalat effective from 1 July 2009. He is also a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad, a member of the Shariah Panel of Amanah Ikhtiar Malaysia, the Chairman of the Shariah Advisory Committee of BIMB Securities Sdn Bhd, the Chairman of the Shariah Advisory Committee of the Association of Islamic Banking Institutions Malaysia and the Chairman of the Shariah Advisory Committee of the Employees Provident Fund. Before being appointed as a member of the SAB of Takaful Malaysia on 1 July 2002, he was the Secretary of the SAB of Takaful Malaysia since its inception in 1985 to December 2001.




Y. Bhg. Dr. Aida Othman Ahli / Member

Y. Bhg. Dr. Aida Othman, berusia 42 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 6 Mac 2008.

Y. Bhg. Dr. Aida Othman, aged 42, is a Malaysian citizen and is a member of the Shariah Advisory Body (SAB) of Takaful Malaysia who was appointed on 6 March 2008.

Beliau memperolehi Ijazah Sarjana Muda Undang-undang (LL.B) dari Universiti Islam Antarabangsa pada tahun 1992 dan Ijazah Sarjana Muda Undang-undang (LL.B Syariah) pada tahun 1993. Pada tahun 1995, beliau memperolehi Sarjana Undang-undang (LL.M) dari Universiti Cambridge, England dan pada tahun 2005 beliau memperolehi Doktor Falsafah dari Universiti Harvard, Amerika Syarikat. Beliau juga memperolehi PostDoctorate Fellowship dari Universiti Harvard pada tahun 2006.

She graduated from the International Islamic University Malaysia with a Bachelor of Law (LL.B) degree in 1992 and a Bachelor of Law (LL.B Shariah) degree in 1993. In 1995, she obtained a Master in Law (LL.M) from the Cambridge University, England and in 2005, she obtained a Doctor of Philosophy from the Harvard University, USA. She also obtained a PostDoctorate Fellowship from the Harvard University in 2006.

Beliau memulakan kerjayanya dengan Tetuan Zain & Co. pada tahun 1993 sebagai Penolong Pegawai Undang Undang. Pada tahun 1995, beliau menyertai Universiti Islam Antarabangsa sebagai Pensyarah. Kemudian beliau menjadi Penyelidik di United Nations dari tahun 1998 hingga 1999. Pada tahun 2002, beliau berkhidmat di Universiti Harvard sebagai Teaching Fellow sehingga tahun 2003 dan PostDoctorate Fellow dan Teaching Assistant dari tahun 2005 hingga 2006. Beliau kini merupakan Rakan kongsi di firma guaman Zaid Ibrahim & Co. dan juga sebagai Pengarah di ZI Shariah Advisory Sdn Bhd.

She started her career with Messrs. Zain & Co. in 1993 as Assistant Legal Officer. In 1995, she joined International Islamic University Malaysia as a Lecturer. After that, she became a Researcher at United Nations from 1998 until 1999. In 2002, she joined the Harvard University as a Teaching Fellow until 2003 and a PostDoctorate Fellow and Teaching Assistant from 2005 until 2006. Currently she is a Partner at the law firm, Zaid Ibrahim & Co. as well as a Director at ZI Shariah Advisory Sdn Bhd.

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Y. Bhg. Prof. Madya Dr. Muhamad Rahimi Osman Ahli / Member

Y. Bhg. Prof. Madya Dr. Muhamad Rahimi Osman, berusia 50 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 12 Januari 2010.

Y. Bhg. Associate Prof. Dr. Muhamad Rahimi Osman, aged 50, is a Malaysian citizen and is a member of the Shariah Advisory Body (SAB) of Takaful Malaysia who was appointed on 12 January 2010.

Berkelulusan Ijazah Sarjana Muda Syariah (Hons) dari Universiti Malaya pada tahun 1987, Ijazah Sarjana dalam Ekonomi Islam dari Universiti Yarmouk, Jordan dan Doktor Falsafah (PhD) dalam Perbankan Islam dari Universiti Islam Antarabangsa Malaysia masing-masing pada tahun 1996 dan 2007. Sekarang ini, beliau memegang jawatan Pengarah, Pusat Pemikiran dan Kefahaman Islam (CITU), Universiti Teknologi MARA (UiTM), Shah Alam.

He graduated from the University of Malaya in 1987, holding a Bachelor of Shariah (Hons). He obtained his Master in Islamic Economics from the University of Yarmouk, Jordan and a Doctor of Philosophy (PhD) in Islamic Banking from the International Islamic University Malaysia in 1996 and 2007 respectively. Currently he is a Director of the Centre for Islamic Thought and Understanding (CITU), Universiti Teknologi MARA (UiTM), Shah Alam.

Beliau memulakan kerjayanya sebagai pensyarah di Pusat Pendidikan Islam, Universiti Teknologi MARA (UiTM), Shah Alam pada tahun 1988. Beliau telah dilantik memegang beberapa jawatan pentadbiran seperti Koordinator Sains Sosial Islam, Ketua Unit Zakat, Timbalan Pengarah, Pusat Pemikiran dan Kefahaman Islam (CITU) dan Pengarah, Institut Kajian Zakat Malaysia (IKaZ), Universiti Teknologi MARA. Beliau juga adalah ahli Jawatankuasa Penasihat Syariah, Hong Leong Islamic Bank Malaysia, ahli jawatankuasa Penyelaras Kurikulum Program Muamalat, Takaful, Kewangan dan Perbankan Islam, Kementerian Pengajian Tinggi Malaysia, Ahli Senat Universiti dan ahli Majlis Dekan Pengajian Islam, Institusi Pengajian Tinggi Awam Malaysia dan beberapa jawatankuasa lain di dalam dan luar Universiti. Beliau juga telah menulis dan membentangkan kertas kerja di peringkat nasional dan antarabangsa dan terlibat menjalankan penyelidikan dalam bidang ekonomi, perbankan dan kewangan Islam. Artikel beliau juga telah diterbitkan dalam jurnal tempatan dan antarabangsa.

He joined Universiti Teknologi MARA (UiTM), Shah Alam in 1988 as an academic staff at the Centre for Islamic Education. He was appointed to several administration posts such as Coordinator of Islamic Social Science, Head of Zakat Unit, Deputy Director, Centre for Islamic Thought and Understanding (CITU) and Director of the Zakat Research Institute of Malaysia (IKaZ), Universiti Teknologi MARA. He also serves as a member of Shariah Committee of Hong Leong Islamic Bank Malaysia, member of the Curriculum Review Committee for Muamalat, Takaful, Islamic Banking and Finance of the Ministry of Higher Education Malaysia, member of the Senate University, and member of the Dean Council of Islamic Studies, Higher Learning Institutions of Malaysia and several other committees inside and outside of the University. He has written and presented papers at national and international seminars related to Islamic economics, Islamic banking and finance. His articles have also been published in local and international journals.




Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz Ahli / Member

Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz, berusia 59 tahun, adalah warganegara Malaysia dan merupakan ahli Badan Penasihat Syariah (BPS) Takaful Malaysia yang telah dilantik pada 1 Jun 2011. Beliau memperolehi Diploma Pendidikan pada tahun 1977 dan Sarjana Muda dalam Pengajian Islam (Kepujian) pada tahun 1978 dari Universiti Kebangsaan Malaysia. Beliau juga memperolehi Diploma Sains Pengurusan dari Institut Tadbiran Awam Negara (INTAN) pada tahun 1989. Beliau merupakan ahli British Institute of Management (MBIM) dan Institut Kefahaman Islam Malaysia (IKIM) masing-masing sejak tahun 1985 dan 2011. Beliau memulakan kerjayanya pada tahun 1978 sebagai Penolong Pengarah dan kemudiannya menjadi Penolong Pengarah Kanan di Institut Dakwah dan Latihan Islam (INDAH) Bahagian Hal Ehwal Islam (BAHEIS), Jabatan Perdana Menteri. Beliau kemudian menjadi Atase Ugama di Pejabat Pesuruhjaya Tinggi Malaysia di London selama tiga tahun sejak tahun 1982. Selepas pulang ke Malaysia pada tahun 1986, beliau dinaikkan pangkat sebagai Ketua Penolong Pengarah di BAHEIS dan kemudiannya sebagai Ketua Bahagian Amar Ma’ruf dan Ketua Pendaftar Nikah, Cerai dan Rujuk di Jabatan Agama Islam Wilayah Persekutuan (JAWI). Pada tahun 1993, beliau bertugas sebagai Ketua Penolong Pengarah Ekonomi, Pentadbiran Sosial, Pusat Penyelidikan Islam. Pada tahun 1994, beliau merupakan Pengetua Darul Quran Jabatan Kemajuan Islam Malaysia (JAKIM) dan kemudiannya memegang pelbagai jawatan seperti Pengarah Bahagian Keluarga, Sosial dan Pengurusan Masjid (KESUMA), Pengarah Bahagian Penyelidikan, Timbalan Ketua Pengarah (Operasi) dan Ketua Pengarah masing-masing pada tahun 2000, 2003, 2004 dan 2007 sebelum beliau bersara pada 22 April 2011. Sepanjang tempoh menjadi Ketua Pengarah JAKIM, beliau juga bertindak sebagai Setiausaha Jawatankuasa Fatwa Kebangsaan. Beliau juga pernah berkhidmat sebagai ahli Majlis Penasihat Syariah di Bank Negara Malaysia pada tahun 2008 sehingga tahun 2010.

Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz, aged 59, is a Malaysian citizen and is a member of the Shariah Advisory Body (SAB) of Takaful Malaysia who was appointed on 1 June 2011. He graduated from Universiti Kebangsaan Malaysia with a Diploma in Education in 1977 and a Bachelor of Islamic Studies (Honours) in 1978. He also obtained a Diploma in Management Science from the National Institute of Public Administration (Institut Tadbiran Awam Negara (INTAN)) in 1989. He is a member of British Institute of Management (MBIM) and Institute of Islamic Understanding Malaysia (Institut Kefahaman Islam Malaysia (IKIM)) since 1985 and 2011 respectively. He started his career in 1978 as an Assistant Director and later as Senior Assistant Director at the Institut Dakwah dan Latihan Islam (INDAH) of Islamic Affairs Division (Bahagian Hal Ehwal Islam (BAHEIS)), Prime Minister’s Department. He then served as Atase Ugama at the Malaysian High Commission’s office in London for three years from 1982. Upon returning to Malaysia in 1986, he was promoted to Chief Assistant Director in BAHEIS and thereafter as the Chief of Amar Ma’ruf Division and Chief Registrar of Marriage, Divorce and Ruju’ at the Federal Territory Islamic Religious Department (Jabatan Agama Islam Wilayah Persekutuan (JAWI)). In 1993, he served as Chief Assistant Director of Social, Administration and Economy at the Islamic Research Center. In 1994, he served as Principal at the Darul Quran of the Malaysian Islamic Development Department (Jabatan Kemajuan Islam Malaysia (JAKIM)) and later assumed various positions such as Director of Family, Social and Mosque Management Division (KESUMA), Director of Research Division, Deputy Director General (Operation) and Director General of JAKIM in 2000, 2003, 2004 and 2007 respectively before his retirement on 22 April 2011. He also served as Secretary to the National Fatwa Committee while serving as Director General of JAKIM. He was also previously a member of the Shariah Advisory Council of Bank Negara Malaysia from 2008 until 2010.

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Jawatankuasa Pengurusan

Management Committee

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil Pengarah Urusan Kumpulan/ Group Managing Director

Encik Lee Hin Sze Ketua Pegawai Kewangan/ Chief Financial Officer

Puan Azian Kassim Ketua Pegawai Pelaburan/ Chief Investment Officer

Encik Mohamad Asri Hj. Yusoff Setiausaha Syarikat / Pengurus Besar, Hal Ehwal Korporat/ Company Secretary / General Manager, Corporate Affairs




Encik Nazrul Hisham Abdul Hamid Ketua Pegawai Audit Dalaman/ Chief Internal Auditor

Encik Leem Why Chong Pengurus Besar, Aktuari & Aktuari Dilantik/ General Manager, Actuarial & Appointed Actuary

Encik Mohd Suhaimi Ahmad Pengurus Besar, Agensi Runcit/ General Manager, Retail Agency

Puan Shuhaibahtulaslamiah Hurmuzan Pengurus Besar, Sumber Manusia/ General Manager, Human Resource

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032




Encik Patrick Wong Chang Yang Ketua Pegawai Informasi/ Chief Information Officer

Encik Mark Anthony Nathan Pengurus Besar, Bankatakaful/ General Manager, Bancatakaful

Puan Roszy Non Penolong Pengurus Besar, Perkhidmatan Pelanggan / Operasi Cawangan/ Assistant General Manager, Customer Service / Branch Operations

Puan Noraini Mohd Yusof Penolong Pengurus Besar, Broking Cawangan / Korporat Langsung/ Perbendaharaan (BPP) Assistant General Manager, Branch Broking/ Direct Corporate / Treasury (BPP)


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Cik Leong Chee Wan Penolong Pengurus Besar, Operasi – Takaful Keluarga / Bankatakaful / Logistik/ Assistant General Manager, Operations – Family Takaful / Bancatakaful / Logistics

Encik Iskandar Leong Abdullah Penolong Pengurus Besar, Pematuhan & Pengurusan Risiko/ Assistant General Manager, Compliance & Risk Management

Encik Mohamed Sabri Ramli Penolong Pengurus Besar, Operasi Takaful Am/ Assistant General Manager, General Takaful Operations

Encik Sany Tee Rudy Tee Penolong Pengurus Besar, Agensi Korporat/ Assistant General Manager, Corporate Agency

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Laporan Jawatankuasa Audit

Audit Committee Report

Lembaga Pengarah Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) dengan berbesar hati membentangkan Laporan Jawatankuasa Audit bagi tahun kewangan yang dikaji. Jawatankuasa Audit (“Jawatankuasa”) telah ditubuhkan pada 6 Mac 1990 untuk menilai struktur kewangan, sistem kawalan dalaman, perancangan strategik, pelaksanaan fungsi audit Takaful Malaysia dan untuk mencadangkan keputusan yang boleh dilaksanakan bagi memastikan piawaian tanggungjawab korporat, kewibawaan dan kebertanggungjawaban kepada para pemegang saham yang tinggi, selaras dengan piawaian urus tadbir dan pendedahan yang dikehendaki daripada sebuah syarikat senarai awam di Malaysia.

The Board of Directors of Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) is pleased to present the Audit Committee Report for the financial year under review. The Audit Committee (“Committee”) was established on 6 March 1990 to appraise Takaful Malaysia’s financial structure, internal control system, strategic planning, implementation of audit function and to propose applicable decisions in ensuring a high standard of corporate responsibility, integrity and accountability to shareholders in line with the corporate governance and disclosure standards expected from that of a public listed company in Malaysia.

KEAHLIAN DAN MESYUARAT

MEMBERSHIP AND MEETINGS

Jawatankuasa kini terdiri daripada empat (4) orang ahli, tiga (3) daripada mereka adalah Pengarah Bukan Eksekutif Bebas. Maklumat terperinci mengenai ahli dan mesyuarat yang diadakan sepanjang tahun kewangan berakhir 31 Disember 2011 adalah seperti berikut:

The Committee currently comprises four (4) members, three (3) of whom are Independent Non-Executive Directors. The details of members and meetings held during the financial year ended 31 December 2011 are as follows:

Nama Ahli Jawatankuasa Audit

Bil. Mesyuarat Diadakan Dihadiri

Encik Mahadzir Azizan (Pengerusi) 8 (Pengarah Bukan Eksekutif Bebas Kanan) Puan Rozaida Omar 8 (Pengarah Bukan Eksekutif Bukan Bebas) Y. Bhg. Dato’ Sulaiman Mohd Yusof 8 (Pengarah Bukan Eksekutif Bebas) Encik Zakaria Ismail 8 (Pengarah Bukan Eksekutif Bebas)

Name of Audit Committee Members

No. of Meetings Held Attended

Encik Mahadzir Azizan (Chairman) 8 (Senior Independent Non-Executive Director)

8

6

Puan Rozaida Omar (Non-Independent Non-Executive Director)

8

6

8

Y. Bhg. Dato’ Sulaiman Mohd Yusof (Independent Non-Executive Director)

8

8

Encik Zakaria Ismail (Independent Non-Executive Director)

8

8

8

8

Puan Rozaida Omar adalah ahli Institut Akauntan Malaysia (“MIA”). Oleh itu, Takaful Malaysia telah mematuhi Perenggan 15.09(1)(c)(i) Keperluan Penyenaraian Pasaran Utama (“Keperluan Penyenaraian”) Bursa Malaysia Securities Berhad (“Bursa Malaysia”) yang menggariskan bahawa sekurang-kurangnya seorang (1) ahli Jawatankuasa mestilah merupakan ahli MIA. Jawatankuasa telah bermesyuarat sebanyak lapan (8) kali pada tahun kewangan ini. Mesyuarat tersebut telah disusun dan dijalankan dengan sewajarnya melalui penggunaan agenda yang diedarkan kepada ahli terlebih dahulu dengan notis yang mencukupi. Pengarah Urusan Kumpulan, Ketua Pegawai Kewangan dan Ketua Audit Dalaman selalunya menghadiri mesyuarat tersebut. Dalam tahun kewangan berakhir 31 Disember 2011, Pengarah Urusan Kumpulan menghadiri kesemua mesyuarat yang diadakan, manakala Ketua Pegawai Kewangan dan Ketua Audit Dalaman menghadiri 7 daripada 8 mesyuarat yang diadakan.

Puan Rozaida Omar is a member of the Malaysian Institute of Accountants (“MIA”). Thus, Takaful Malaysia complies with Paragraph 15.09 (1)(c)(i) of the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) which stipulate that at least one (1) member of the Committee must be a member of the MIA. The Committee met eight (8) times during the financial year. The meetings were appropriately structured and conducted through the use of agenda which were distributed to members with sufficient notification. The Group Managing Director, the Chief Financial Officer and the Chief Internal Auditor normally attend the meetings. During the financial year ended 31 December 2011, the Group Managing Director attended all the meetings held, while the Chief Financial Officer and the Chief Internal Auditor attended 7 out of 8 meetings held.




TERMA RUJUKAN

TERM OF REFERENCE

Komposisi Ahli Jawatankuasa hendaklah dilantik oleh Lembaga Pengarah daripada kalangan mereka dan hendaklah terdiri daripada sekurang-kurangnya tiga (3) orang ahli, di mana kesemuanya hendaklah terdiri dari Pengarah Bukan Eksekutif dengan majoritinya adalah Pengarah Bebas. Seorang Pengarah Bukan Eksekutif Bebas hendaklah merupakan ahli yang memenuhi keperluan seperti yang diperuntukkan dalam Keperluan Penyenaraian Bursa Malaysia dan garis panduan Bank Negara Malaysia (“BNM”).

Composition The members of the Committee shall be appointed by the Board from amongst their numbers and shall comprise at least three (3) members, all of whom must be Non-Executive Directors with majority of them shall be Independent Directors. An Independent Non-Executive Director shall be the one who fulfils the requirements as provided in the Bursa Malaysia Listing Requirements and the guidelines of Bank Negara Malaysia (“BNM”).

Sekurang-kurangnya seorang (1) ahli Jawatankuasa: 1) mestilah merupakan ahli MIA; atau 2) jika beliau bukan ahli MIA, beliau mestilah mempunyai pengalaman bekerja sekurang-kurangnya selama tiga (3) tahun dan:(a) beliau mestilah lulus peperiksaan yang dinyatakan dalam Bahagian I Jadual Pertama Akta Akauntan 1967; atau (b) beliau mestilah merupakan ahli salah sebuah persatuan akauntan yang dinyatakan dalam Bahagian II Jadual Pertama Akta Akauntan 1967; atau 3) memenuhi keperluan-keperluan lain yang digariskan atau diluluskan oleh Bursa Malaysia.

At least one (1) member of the Committee: 1) must be a member of the MIA; or 2) if he is not a member of the MIA, he must have at least three (3) years’ working experience and:(a) he must have passed the examinations specified in Part I of the First Schedule of the Accountants Act 1967; or (b) he must be a member of one of the associations of accountants specified in Part II of the First Schedule of the Accountants Act 1967; or 3) fulfils such other requirements as prescribed or approved by Bursa Malaysia.

Ahli Jawatankuasa hendaklah melantik Pengerusi daripada kalangan mereka yang merupakan seorang Pengarah Bukan Eksekutif Bebas. Sekiranya seorang ahli Jawatankuasa meletak jawatan, meninggal dunia atau atas sebarang sebab tidak lagi menjadi ahli sehingga menyebabkan bilangan ahli kurang daripada tiga (3) orang, maka Lembaga Pengarah hendaklah melantik ahli baru dalam bilangan yang diperlukan untuk mencukupkan bilangan minimum ahli kepada tiga (3) orang dalam tempoh tiga (3) bulan dari peristiwa tersebut. Pengarah gantian tidak boleh dilantik sebagai ahli Jawatankuasa.

The members of the Committee shall elect a Chairman from amongst their numbers who shall be an Independent NonExecutive Director. If a member of the Committee resigns, dies or for any reason ceases to be a member with the result that the number of members are reduced below three (3), the Board shall within three (3) months of that event, appoint such number of new members as may be required to make up the minimum number of three (3) members. No alternate Director can be appointed as a member of the Committee.

Lembaga Pengarah hendaklah mengkaji semula tempoh perkhidmatan dan prestasi Jawatankuasa Audit dan setiap ahlinya sekurang-kurangnya setiap tiga (3) tahun sekali bagi memastikan Jawatankuasa dan ahlinya telah menjalankan tugas-tugas mereka berdasarkan terma rujukan. Korum dan Prosedur Jawatankuasa Mesyuarat hendaklah diadakan sekurang-kurangnya empat (4) kali setahun atau dengan lebih kerap, mengikut keperluan. Bagi membentuk korum mesyuarat, majoriti ahli yang hadir mestilah merupakan Pengarah Bukan Eksekutif Bebas. Sekiranya Pengerusi tidak hadir, ahli-ahli yang hadir hendaklah melantik seorang Pengerusi bagi mesyuarat tersebut daripada kalangan ahli-ahli yang hadir.

The Board shall review the term of office and performance of the Committee and each of its members at least once every three (3) years to ensure the Committee and members have carried out their duties in accordance with their terms of reference. Quorum and Committee’s Procedures Meetings shall be conducted at least four (4) times annually or more frequently as circumstances dictate. In order to form a quorum for the meeting, the majority of members present must be Independent Non-Executive Directors. In the absence of the Chairman, the members present shall elect a Chairman for the meeting from amongst the members present.

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Setiausaha Syarikat hendaklah bertindak sebagai Setiausaha Jawatankuasa. Atas persetujuan Pengerusi, Setiausaha hendaklah merangka agenda yang akan diedarkan kepada ahli Jawatankuasa bersama-sama dengan kertas sokongan yang berkaitan dalam tempoh yang berpatutan sebelum setiap mesyuarat. Setiausaha hendaklah mengedarkan minit mesyuarat kepada semua ahli Jawatankuasa. Jawatankuasa boleh, apabila dianggap perlu, menjemput ahli Lembaga Pengarah lain dan/atau ahli Pengurusan Kanan untuk menghadiri mesyuarat Jawatankuasa. Jawatankuasa ini hendaklah bermesyuarat dengan juruaudit luar sekurang-kurangnya dua (2) kali setahun, untuk membincangkan sebarang perkara dengan Jawatankuasa tanpa kehadiran mana-mana ahli eksekutif Lembaga Pengarah dan Pengurusan Kanan. Pengerusi Jawatankuasa akan mengadakan mesyuarat untuk mempertimbangkan sebarang perkara yang pihak juruaudit luar percaya perlu di bawa kepada perhatian para Pengarah atau pemegang saham. Jawatankuasa hendaklah mengatur prosiding mesyuaratnya, dengan mengambil kira konvensyen biasa berhubung perkara tersebut. Kuasa Jawatankuasa diberi kuasa oleh Lembaga Pengarah untuk menyiasat sebarang perkara dalam terma rujukannya. Jawatankuasa juga diberi kuasa untuk mendapatkan sebarang maklumat yang diperlukan daripada mana-mana kakitangan dan semua kakitangan dikehendaki memberi kerjasama terhadap sebarang permintaan yang dibuat oleh Jawatankuasa. Jawatankuasa hendaklah mempunyai akses penuh dan tanpa had kepada sebarang maklumat berkaitan Kumpulan dan hendaklah mempunyai sumber yang diperlukan untuk melaksanakan tugasnya. Jawatankuasa boleh mendapatkan nasihat perundangan atau profesional bebas luar lain yang dianggap perlu, dengan perbelanjaan ditanggung oleh Takaful Malaysia. Jawatankuasa hendaklah mempunyai saluran komunikasi secara langsung dengan juruaudit dalaman dan juruaudit luar, kakitangan pengurusan risiko dan dengan Pengurusan Kanan Kumpulan dan boleh mengadakan mesyuarat dengan juruaudit luar, juruaudit dalaman atau kedua-duanya sekali, tanpa dihadiri oleh para pengarah dan kakitangan Syarikat, bila-bila dianggap perlu. Sekiranya Jawatankuasa berpendapat bahawa sebarang perkara yang dilaporkan olehnya kepada Lembaga Pengarah masih belum diselesaikan dengan memuaskan sehingga menyebabkan pelanggaran Keperluan Penyenaraian Bursa Malaysia, Jawatankuasa hendaklah melaporkan dengan segera perkara tersebut kepada Bursa Malaysia.

The Company Secretary shall be the Secretary of the Committee. The Secretary, in concurrence with the Chairman, shall draw up an agenda, which shall be circulated together with relevant support papers within reasonable time prior to each meeting to the members of the Committee. The Secretary shall circulate the minutes of meetings to all members of the Committee. The Committee may, as and when deemed necessary, invite other Board members and/or Senior Management members to attend the Committee meetings. The Committee shall, at least twice (2) a year, meet with the external auditors to discuss any matter with the Committee without the presence of any executive members of the Board and Senior Management. The Chairman of the Committee shall convene a meeting of the Committee to consider any matter which the external auditors believe should be brought to the attention of the Directors or shareholders. The Committee shall regulate the manner of proceedings of its meetings, having regard to normal conventions on such matter. Authority The Committee is authorised by the Board to investigate any matter within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are required to cooperate with any request made by the Committee. The Committee shall have full and unrestricted access to any information pertaining to the Group. The Committee shall have the resources that are required to perform its duties. The Committee can obtain, at the expense of Takaful Malaysia, external legal or other independent professional advice it considers necessary. The Committee shall have direct communication channels with the internal and external auditors, the risk management personnel and with Senior Management of the Group and shall be able to convene meetings with the external auditors, the internal auditors or both, excluding the attendance of other directors and employees of the Company, whenever deemed necessary. Where the Committee is of the view that a matter reported by it to the Board has not been satisfactorily resolved resulting in a breach of Bursa Malaysia Listing Requirements, the Committee shall promptly report such matter to the Bursa Malaysia.




Tugas dan Tanggungjawab Fungsi utama Jawatankuasa adalah untuk membantu Lembaga Pengarah dalam menilai proses Kumpulan berkaitan dengan risiko dan persekitaran kawalannya, mengawasi laporan kewangan dan menilai proses audit dalaman dan luar.

Duties and Responsibilities The primary function of the Committee is to assist the Board to assess the Group’s processes relating to its risks and control environment, oversee financial reporting and evaluate the internal and external audit processes.

Oleh yang demikian, tugas dan tanggungjawab Jawatankuasa adalah termasuk perkara-perkara berikut:

Therefore, the duties and responsibilities of the Committee include the followings:

• mengkaji dengan juruaudit luar dan melaporkan kepada Lembaga Pengarah, skop dan pelan audit, termasuk sebarang perubahan kepada skop yang dirancang bagi pelan audit luar dan penilaian bagi sistem kawalan dalaman. • mengkaji kecukupan skop dan pelan audit dalaman,fungsifungsi, daya saing dan sumber fungsi audit dalaman dan sama ada ianya mempunyai kuasa diperlukan untuk menjalankan tugas.

• to review with the external auditor and report to the Board, the audit scope and plan, including any changes to the planned scope of the external audit plan and evaluation of the system of internal control. • to review the adequacy of the internal audit scope and plan, functions, competency and resources of the internal audit functions and that it has the necessary authority to carry out its work.

• mengkaji laporan audit dalaman dan luar bagi memastikan supaya tindakan segera dan sewajarnya diambil oleh pihak Pengurusan terhadap kekurangan utama dalam kawalan atau prosedur yang telah dikenal pasti dan dilaporkan kepada Lembaga Pengarah.

• to review the external and internal audit reports to ensure that appropriate and prompt remedial action is taken by Management on major deficiencies in controls or procedures that are identified and reported to the Board.

• mengkaji penemuan audit utama dan tindakan Pengurusan sepanjang tahun dengan pihak Pengurusan, juruaudit luar dan juruaudit dalaman termasuk status syor-syor audit yang terdahulu.

• to review the major audit findings and Management’s response during the year with Management, external auditors and internal auditors, including the status of previous audit recommendations.

• mengkaji pelantikan, prestasi, yuran audit dan sebarang persoalan berhubung peletakan jawatan atau pemecatan juruaudit luar sebelum memberi cadangan kepada Lembaga Pengarah.

• to review the appointment, performance, audit fees and any question regarding the resignation or dismissal of external auditors before making recommendations to the Board.

• mengkaji keputusan suku tahunan dan penyata kewangan akhir tahun, sebelum kelulusan Lembaga Pengarah dengan menumpu terutamanya kepada: - perubahan atau pelaksanaan dasar dan praktis perakaunan utama; - pelarasan ketara dan peristiwa penting dan luar biasa timbul dari audit; - andaian perniagaan berterusan; dan - pematuhan kepada standard kewangan, Bursa Malaysia dan keperluan undang-undang. • membincangkan masalah dan persoalan yang wujud dari audit interim dan akhir dan sebarang perkara yang ingin dibincangkan oleh juruaudit (tanpa kehadiran pihak Pengurusan jika perlu). • mengkaji Piagam Audit Dalaman, belanjawan dan komposisi kakitangan Bahagian Audit Dalaman.

• to review the quarterly and year end financial statements, before the approval by the Board, focusing particularly on: - changes in or implementation of major accounting policy and practice; - significant adjustments and unusual event arising from the audit; - the going concern assumption; and - compliance with accounting standards, Bursa Malaysia and other legal requirements. • to discuss problems and reservations arising from the interim and final audits, and any matter the auditor may wish to discuss (in the absence of Management where necessary). • to review the Internal Audit Charter, budget and staffing of the Internal Audit Division.

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• mengkaji kecukupan dan kewibawaan kawalan dalaman, penemuan audit dalaman dan mencadangkan tindakan yang perlu diambil oleh Pengurusan. Laporan juruaudit dalaman dan Jawatankuasa tidak tertakluk kepada kebenaran dari Ketua Pegawai Eksekutif/Pengarah Urusan Kumpulan dan Pengarah Eksekutif.

• to review the adequacy and integrity of internal controls, the internal audit findings, and recommend action to be taken by Management. The reports of the internal auditors and the Committee should not be subject to the clearance of the Chief Executive Officer/Group Managing Director and Executive Directors.

• mengarah dan sekiranya wajar, menyelia sebarang projek atau siasatan khas jika perlu, dan mengkaji laporan siasatan berkenaan sebarang penyalahgunaan, penipuan dan kecurian yang besar.

• to direct and where appropriate supervise any special projects or investigation considered necessary, and review investigation report on any major defalcation, frauds and thefts.

• memastikan akaun disediakan tepat pada masanya dan dengan cara yang tepat dengan kajian secara kerap terhadap kecukupan peruntukan bagi luar jangka, dan hutang lapuk dan hutang ragu. • mengkaji sebarang urusniaga pihak berkaitan dan situasi konflik kepentingan yang mungkin timbul dalam Syarikat atau Kumpulan, termasuk sebarang urusniaga, prosedur atau tatacara yang menimbulkan persoalan terhadap kewibawaan pihak Pengurusan. • melaksanakan sebarang fungsi lain yang mungkin dipersetujui oleh Lembaga Pengarah. RINGKASAN AKTIVITI-AKTIVITI JAWATANKUASA Aktiviti-aktiviti yang telah dijalankan oleh Jawatankuasa sepanjang tahun kewangan yang dikaji termasuk: • Mengkaji dan memantau dengan juruaudit luar, keputusan dan perkembangan audit bagi tempoh kewangan lapan belas (18) bulan berakhir 31 Disember 2010, laporan audit dan surat Pengurusan, termasuk tindakan Pengurusan berkaitannya.

• to ensure that the accounts are prepared in a timely and accurate manner with frequent reviews of the adequacy of provisions against contingencies, and bad and doubtful debts. • to review any related party transaction and conflict of interest situation that may arise within the Company or the Group, including any transaction, procedure or course of conduct that raises questions of management integrity. • to perform any other functions as may be agreed by the Board. SUMMARY OF ACTIVITIES OF THE COMMITTEE The activities undertaken by the Committee during the financial year under review include the following: • Reviewed and monitored with the external auditors, the results and progress of the audit for the eighteen (18) months financial period ended 31 December 2010, the audit report and the Management letter, including Management’s response thereto.

• Berbincang mengenai pelantikan semula juruaudit luar bagi tahun kewangan berakhir 31 Disember 2011.

• Discussed the re-appointment of external auditors for the financial year ended 31 December 2011.

• Mengkaji skop kerja dan rancangan audit juruaudit luar bagi tahun kewangan berakhir 31 Disember 2011. Sebelum audit dijalankan, wakil-wakil juruaudit luar telah membentangkan strategi dan rancangan audit.

• Reviewed the external auditors’ scope of work and audit plans for the financial year ended 31 December 2011. Prior to the audit, representatives from the external auditors presented their audit strategy and plan.

• Berbincang mengenai yuran audit yang perlu dibayar kepada juruaudit luar.

• Discussed the audit fees payable to the external auditors.

• Berbincang dengan juruaudit luar berhubung sebarang perkara yang memerlukan perhatian Lembaga Pengarah dan Pemegang Saham tanpa kehadiran ahli Lembaga Pengarah Eksekutif dan pihak Pengurusan.

• Discussed with external auditors any matters that warrant the Board and Shareholders’ attention without the presence of the member of the Executive Directors and Management.




• Mengkaji laporan audit dalaman dan audit khas yang menekankan isu-isu audit, cadangan dan maklum balas pihak Pengurusan yang berkaitan. Berbincang dengan Pengurusan mengenai tindakan yang telah dan akan diambil untuk mempertingkatkan sistem kawalan dalaman berdasarkan peluang-peluang penambahbaikan yang telah dikenal pasti dalam laporan audit dalaman. • Mengkaji pelan audit Syariah bagi tahun kewangan 2011 dan skop kerja yang ditetapkan oleh Rangka Kerja Tadbir Urus Syariah yang dikeluarkan oleh BNM. Laporan audit Syariah telah dibincangkan di peringkat Jawatankuasa dan Badan Penasihat Syariah. • Mengkaji laporan susulan oleh juruaudit dalaman mengenai status tindakan yang diambil oleh pihak Pengurusan terhadap cadangan yang diberikan dalam laporan audit. • Mengkaji laporan susulan oleh juruaudit dalaman berhubung isu-isu yang dibangkitkan berdasarkan penemuan daripada pemeriksaan oleh BNM dan status tindakan yang diambil oleh pihak Pengurusan mengenai isu yang dibangkitkan oleh BNM. • Mengkaji laporan susulan oleh juruaudit dalaman berhubung isu yang dibangkitkan dalam surat Pengurusan oleh juruaudit luar dan status tindakan yang diambil oleh pihak Pengurusan mengenai isu tersebut. • Mengkaji penyata kewangan Syarikat yang telah diaudit sebelum diserahkan kepada Lembaga Pengarah bagi pertimbangan dan kelulusan mereka. Kajian ini adalah untuk memastikan supaya penyata kewangan yang telah diaudit disediakan mengikut peruntukan Akta Syarikat 1965 dan piawaian perakaunan berkaitan yang diluluskan. • Mengkaji laporan Pematuhan mengenai tahap pematuhan dengan keperluan Pihak Penguatkuasa, undang-undang dan Akta. • Mengkaji dan mencadangkan penambahbaikan kepada Polisi Pemberitahuan Maklumat lanjutan daripada Akta Perlindungan Pemberi Maklumat, 2010 serta Polisi Penipuan & Integriti yang penting dalam menggalakkan kelakuan beretika dalam Kumpulan. • Mengkaji pengumuman keputusan kewangan suku tahunan yang belum diaudit sebelum disyorkan kepada Lembaga Pengarah untuk kelulusan. • Mengkaji urusniaga pihak yang berkaitan dalam Kumpulan. • Mengkaji penyata pendedahan dalam Laporan Tahunan seperti Penyata Urus Tadbir Korporat, Penyata Kawalan Dalaman dan Laporan Jawatankuasa Audit dalam mematuhi Keperluan Penyenaraian Bursa Malaysia dan Suruhanjaya Sekuriti. • Mengkaji Laporan Tahunan Takaful myAl-Afdhal.

• Reviewed the internal audit reports and special audit reports, which highlighted the audit issues, recommendations and Management’s response thereto. Discussed with Management on actions taken or to be taken to improve the system of internal control based on improvement opportunities identified in the internal audit reports. • Reviewed the Shariah audit plan for financial year 2011 and the scope of work as prescribed by the Shariah Governance Framework issued by BNM. The Shariah audit report was deliberated at the Committee and Shariah Advisory Body level. • Reviewed follow-up reports by the internal auditors on the status of actions taken by the Management on recommendations suggested in the audit reports. • Reviewed follow-up reports by the internal auditors on BNM’s examination findings and status of actions taken by the Management on issues raised by BNM. • Reviewed follow-up reports by the internal auditors on external auditors’ findings as set out in the Management letter and status of actions taken by the Management on issues raised by the external auditors. • Reviewed the audited financial statements of the Company prior to submission to the Board for their consideration and approval. The review was to ensure that the audited financial statements were drawn up in accordance with the provisions of the Companies Act 1965 and the applicable approved accounting standards. • Reviewed the Compliance reports on the level of compliance with Regulators’ requirements, laws and Acts. • Reviewed and recommended improvement to the Whistle Blowing Policy in response to the Whistleblower Protection Act, 2010 as well as Fraud and Intergrity Policy which is essential in promoting ethical conduct within the Group. • Reviewed the quarterly unaudited financial results announcements before recommending them for the Board’s approval. • Reviewed related party transactions within the Group. • Reviewed the disclosure statements in the Annual Report such as Corporate Governance Statement, Statement on Internal Control and Audit Committee Report in compliance with Bursa Malaysia Listing Requirements and Securities Commission. • Reviewed the Takaful myAl-Afdhal Annual Report.

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FUNGSI DAN AKTIVITI-AKTIVITI AUDIT DALAMAN

INTERNAL AUDIT FUNCTION AND ACTIVITIES

Bahagian Audit Dalaman adalah bebas daripada aktiviti atau operasi unit-unit operasi lain dan melapor terus kepada Jawatankuasa Audit. Peranan utama bahagian ini adalah untuk menjalankan kajian sistem kawalan dalaman secara bebas, kerap dan sistematik supaya dapat memberi jaminan yang sewajarnya bahawa sistem tersebut mampu terus beroperasi secara berkesan dan memuaskan. Audit dalaman mengamalkan pendekatan berasaskan risiko dalam rancangan audit dan pemeriksaannya.

The Internal Audit Division is independent of the activities or operations of other operating units and reports directly to the Audit Committee. The principal role of the division is to undertake independent regular and systematic reviews of the systems of internal controls so as to provide reasonable assurance that such systems continue to operate satisfactorily and effectively. The internal audit practices a risk-based approach in its audit plan and examination.

Adalah menjadi tanggungjawab Bahagian Audit Dalaman untuk menyediakan laporan bebas dan objektif kepada Jawatankuasa tentang status kawalan dalaman di pelbagai unit operasi dalam Kumpulan serta tahap pematuhan unit-unit tersebut terhadap dasar dan prosedur Kumpulan serta terhadap keperluan berkanun yang berkaitan. Aktiviti-aktiviti berikut telah dijalankan oleh Bahagian Audit Dalaman dalam tahun kewangan yang dikaji: • Melaksanakan peranan jaminan bebas dengan membuat ulasan kajian berjadual ke atas keberkesanan, kecekapan dan mekanisma kawalan ekonomi untuk mengutarakan risiko dan keutamaan dalam bidang operasi, kewangan, teknologi maklumat, pembangunan produk, pelaburan dan fungsi-fungsi strategik yang menggunapakai pendekatan audit berasaskan risiko seperti yang dinyatakan dalam Pelan Audit Rasmi dua tahun (Tahun Kewangan Berakhir 2011 dan 2012). • Menyediakan jaminan yang munasabah ke atas tahap pematuhan polisi dan prosedur yang telah disediakan di samping keperluan statutori BNM dan badan-badan perundangan lain. • Memberi khidmat nasihat kepada Pengurusan dan subsidiari Syarikat. • Mencadangkan peningkatan ke atas proses perniagaan dan penambahbaikan bagi sistem kawalan dalaman yang sedia ada. • Menjalankan audit susulan berhubung status tindakan yang diambil oleh Pengurusan berdasarkan cadangan yang dibuat dalam penemuan audit juruaudit dalaman, juruaudit luar, pegawai pemeriksa BNM dan lain-lain. • Menjalankan semakan khas dan penyiasatan seperti yang diminta oleh Pengurusan Kanan dan pengesahan daripada Pengerusi Jawatankuasa Audit. • Mengkaji semula kecukupan dan kesesuaian kawalan dalaman dan pendedahan risiko di dalam pakej produk baru berdasarkan semakan semula Rangka Kerja Pembangunan Produk.

It is the responsibility of the Internal Audit Division to provide the Committee with independent and objective reports on the state of internal control of the various operating units within the Group and the extent of compliance of the units with the Group’s established policies and procedures as well as relevant statutory requirements. The following activities were undertaken by the Internal Audit Division during the financial year under review: • Executed independent assurance role by performing scheduled reviews on the effectiveness, efficiency and economical of control mechanism to address risks and concerns in the areas of operations, financial, information technology, product development, investment and strategic functions on a risk based audit approach as set out in the Formalised Two-Year Audit Plan (FYE 2011 and 2012). • Provided reasonable assurance on the extent of compliance with established policies and procedures as well as BNM statutory requirements and other regulatory bodies. • Rendered advisory services to the Management of the Company and its subsidiaries. • Recommended improvements to the business processes and enhancement to the existing system of internal controls. • Conducted follow-up audit on status of actions taken by the Management on recommendations suggested in audit reports of internal auditors, external auditors, BNM examiners, etc. • Carried out special reviews and investigations as requested by Senior Management and endorsement from the Audit Committee Chairman. • Reviewed the adequacy and appropriateness of the internal controls and risk exposures in the new product packages based on the revised Product Development Framework (PDF).




• Menyediakan bimbingan dan nasihat kepada Jawatankuasa Pemandu Projek sebelum pelancaran produk baru dan lama.

• Provided guidance and advices to the Project Steering Committee for new and revised products before launching.

• Menjalankan semakan ke atas penyediaan sistem teknologi maklumat, ujian dan penggunaan sebelum ianya dilaksanakan.

• Conducted reviews on IT system set-ups, tests and deployments before embarking into production.

• Menjalankan semakan khas terhadap pelaksanaan Pembersihan Data untuk sistem teras teknologi maklumat yang baru. • Menjalankan audit ke atas perkakasan komputer, sistem operasi dan aplikasi serta rangkaian teknologi komunikasi maklumat (ICT) Takaful Malaysia.

• Conducted special reviews on Data Cleansing exercise for the new IT core system. • Conducted audit computer hardware, operating and application systems as well as the information communication technology (ICT) network of Takaful Malaysia.

• Menjadi pemerhati dalam tender dan proses pemilihannya.

• Participated in tender and selection process in the capacity of an observer.

• Menyemak dan menyediakan bimbingan terhadap latihan Pengurusan Kesinambungan Perniagaan yang dijalankan.

• Reviewed and provided guidance on the Business Continuity Management exercise conducted.

• Menyemak dan mengumpul data-data terkini Supervisory Concern sebelum diserahkan kepada Bank Negara Malaysia.

• Reviewed and compiled the updates on the Supervisory Concerns prior to submission to Bank Negara Malaysia.

• Mengkaji semula aktiviti khidmat luar terhadap Syarikat.

• Reviewed the outsourcing activities for the Company.

• Membimbing Pengurusan dalam menyediakan Laporan Jawatankuasa Audit dan Penyata Kawalan Dalaman untuk dizahirkan dalam Laporan Tahunan.

• Guided Management in preparing the Audit Committee Report and Statement of Internal Control for disclosure in the Annual Report.

• Mengkaji Laporan Tahunan Takaful myAl-Afdhal.

• Reviewed the Takaful myAl-Afdhal Annual Report.

Laporan daripada tugasan audit dikemukakan kepada pihak Pengurusan untuk perhatian dan tindakan pembetulan yang perlu seperti yang dicadangkan. Pihak Pengurusan bertanggungjawab memastikan tindakan pembetulan terhadap kelemahan yang dilapor dilaksanakan dalam jangka masa yang ditetapkan. Jumlah kos yang terbabit bagi mengekalkan fungsi Audit Dalaman yang dilakukan secara dalaman bagi tahun kewangan yang dikaji adalah lebih kurang RM2.0 juta di mana ia merangkumi sebahagian besarnya adalah gaji, elaun perjalanan dan penginapan dan elaun sara hidup bagi menjalankan tugasan audit.

Reports from the audit assignments are forwarded to the Management for attention and necessary corrective actions as recommended. The Management is responsible for ensuring that corrective actions on reported weaknesses are taken within the required time frame. The costs incurred in maintaining the Internal Audit function which is performed inhouse for the financial year under review was approximately RM2.0 million comprising mainly salaries, travelling and accommodation expenses and subsistence allowance for audit assignments.

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Penyata Urus Tadbir Korporat

Corporate Governance Statement

Lembaga Pengarah Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) terus mematuhi dan menyokong sepenuhnya Kod Urus Tadbir Korporat Malaysia (“Kod”) dan sentiasa komited dalam memastikan supaya Prinsip-prinsip dan Amalan Terbaik Urus Tadbir Korporat dipatuhi dan diamalkan oleh keseluruhan Kumpulan bagi membolehkan urus selia hal-ehwal Kumpulan dikendalikan secara profesional, bertanggungjawab dan berwibawa dengan objektif untuk melindungi dan mempertingkatkan nilai pelaburan pemegang saham dan prestasi kewangan Kumpulan.

The Board of Directors (“the Board”) of Syarikat Takaful Malaysia Berhad (“Takaful Malaysia”) continues to subscribe and fully support the Malaysian Code of Corporate Governance (“the Code”) and is committed to ensure that the Principles of Corporate Governance and Best Practices are observed and practised throughout the Group so that the affairs of the Group are conducted with professionalism, accountability and integrity with the objective of safeguarding and enhancing shareholders’ value and financial performance of the Group.

Lembaga Pengarah dengan ini berbesar hati melaporkan pelaksanaan penggunaan Prinsip-prinsip Kod dan sejauh mana Kumpulan telah mematuhi Kod Amalan Terbaik sebagaimana yang ditetapkan menurut Keperluan Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad (“Keperluan Penyenaraian Bursa Malaysia”) sepanjang tahun kewangan yang dikaji.

The Board is pleased to report on the application of the Principles of the Code and the extent of compliance with the Best Practices of the Code as required under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia Listing Requirements”) during the financial year under review.

PENGARAH

DIRECTORS

Lembaga Pengarah Lembaga Pengarah bertanggungjawab terhadap keseluruhan aspek urus tadbir korporat Kumpulan dan juga diamanahkan dengan tanggungjawab dalam melaksanakan penjagaan yang sewajarnya ke atas Syarikat serta sumber-sumber Kumpulan bagi memelihara kepentingan para pemegang saham dan memastikan pengurusan perniagaan yang sewajarnya.

The Board of Directors The Board is responsible for the overall corporate governance of the Group and is also entrusted with the responsibility of exercising reasonable care of the Company as well as Group’s resources in the best interests of its shareholders and in ensuring the proper conduct of business.

Mesyuarat Lembaga Pengarah Mesyuarat Lembaga Pengarah dijadualkan terlebih dahulu pada permulaan tahun kalendar dengan mesyuarat tambahan diadakan bila perlu. Sembilan (9) mesyuarat Lembaga Pengarah telah diadakan pada tahun kewangan yang dikaji dengan butiran kehadiran setiap Pengarah seperti berikut:

Board Meetings Board meetings are scheduled in advance at the beginning of a calendar year with additional meetings convened when necessary. Nine (9) Board meetings were held during the financial year under review with details of meetings’ attendance of each Director as follows:

Nama/Name Kehadiran/ Attendance

Peratus (%)/ Percentage (%)

Y. Bhg. Dato’ Paduka Ismee Ismail (Pengarah Bukan Eksekutif Bukan Bebas/Non-Independent Non-Executive Director)

9/9

100

Y. Bhg. Dato’ Mohamed Hassan Md Kamil (Pengarah Eksekutif Bukan Bebas/Non-Independent Executive Director)

9/9

100

Puan Rozaida Omar (Pengarah Bukan Eksekutif Bukan Bebas/Non-Independent Non-Executive Director)

8/9

89

Encik Mahadzir Azizan (Pengarah Bukan Eksekutif Bebas Kanan/Senior Independent Non-Executive Director)

9/9

100






Y. Bhg. Dato’ Sulaiman Mohd Yusof (Pengarah Bukan Eksekutif Bebas/Independent Non-Executive Director)

9/9

100

Encik Johan Abdullah (Pengarah Bukan Eksekutif Bukan Bebas/Non-Independent Non-Executive Director)

9/9

100

Encik Zakaria Ismail (Pengarah Bukan Eksekutif Bebas/Independent Non-Executive Director)

9/9

100

Semua Pengarah memiliki latar belakang pengalaman kerja yang luas dalam pelbagai bidang, dan dengan ini membolehkan mereka membuat pertimbangan yang sewajarnya dalam melaksanakan tugas mereka. Keseimbangan Lembaga Pengarah Sepanjang tahun kewangan yang dikaji, Lembaga Pengarah terdiri daripada:

All Directors have the backing of extensive work experience in various fields and therefore able to exercise independent judgement in order to discharge their duties. Board Balance During the financial year under review, the Board comprises the following:

Nama/Name

Komposisi/ Composition

Peratus(%)/ Percentage (%)

Pengarah Eksekutif Bukan Bebas/Non-Independent Executive Director

1/7

14

Pengarah Bukan Eksekutif Bukan Bebas/Non-Independent Non-Executive Directors

3/7

43

Pengarah Bukan Eksekutif Bebas/Independent Non-Executive Directors

3/7

43

Komposisi di atas mematuhi Keperluan Penyenaraian Bursa Malaysia yang mewajibkan satu pertiga (1/3) daripada para Pengarah Takaful Malaysia terdiri daripada Pengarah Bebas.

The above composition is in compliance with Bursa Malaysia Listing Requirements which require that one third (1/3) of Directors of Takaful Malaysia to be Independent Directors.

Lembaga Pengarah yang mempunyai pelbagai latar belakang dan kepakaran khusus, secara kolektifnya membawa bersama mereka pengalaman dan kepakaran yang luas dalam bidang-bidang seperti kewangan, insurans, aktuari, perakaunan, kesetiausahaan syarikat, perundangan, pengurusan dan perbankan. Profil ahli Lembaga Pengarah ada dibentangkan di muka surat 18 hingga 24 dalam Laporan Tahunan ini. Terdapat pembahagian yang jelas antara tanggungjawab Pengerusi dan Pengarah Urusan Kumpulan bagi memastikan keseimbangan kuasa dan autoriti.

The Board with their different backgrounds and specializations, collectively bring with them a wide range of experience and expertise in areas such as finance, insurance, actuary, accounting, company secretarial, legal, management and banking. The profiles of the Directors are provided on pages 18 to 24 of the Annual Report. There is a clear division of responsibilities between the Chairman and the Group Managing Director to ensure that there is a balance of power and authority.

Peranan Pengerusi dan Pengarah Urusan Kumpulan ditakrif dengan jelas di mana Pengerusi bertanggungjawab terhadap pengendalian Lembaga Pengarah dan menerajui perbincangan di peringkat Lembaga Pengarah sementara Pengarah Urusan Kumpulan bertanggungjawab terhadap pengurusan Syarikat dan Kumpulan serta pelaksanaan dasar dan keputusan yang telah diputuskan oleh Lembaga Pengarah.

The roles of the Chairman and Group Managing Director are clearly defined with the Chairman being responsible for running the Board and lead the discussion at the Board level whilst the Group Managing Director is responsible for managing the Company and the Group as well as the implementation of the Board’s policies and decisions.

043

044




Kod mengesyorkan pelantikan Pengarah Bukan Eksekutif Bebas Kanan di mana sebarang kemusykilan boleh dirujuk oleh pemegang saham dan pihak berkepentingan lain. Sehubungan dengan ini, Lembaga Pengarah telah mengenalpasti dan melantik Encik Mahadzir Azizan sebagai Pengarah Bukan Eksekutif Bebas Kanan. Jawatankuasa Lembaga Pengarah Dalam memastikan Lembaga Pengarah melaksanakan tugas mereka dengan lebih berkesan di samping meningkatkan perniagaan dan kecekapan operasi, Lembaga Pengarah mengagihkan tanggungjawab tertentu kepada empat (4) Jawatankuasa Lembaga Pengarah, iaitu: • Jawatankuasa Audit • Jawatankuasa Pemilihan • Jawatankuasa Ganjaran; dan • Jawatankuasa Pengurusan Risiko Setiap Jawatankuasa mempunyai terma rujukan bertulis yang jelas dan Lembaga Pengarah menerima laporan bagi setiap persidangan dan pertimbangan Jawatankuasa tersebut. Pengerusi bagi setiap Jawatankuasa akan melaporkan kepada Lembaga Pengarah setiap keputusan dari mesyuarat yang dijalankan dan laporan tersebut akan dimasukkan ke dalam minit Mesyuarat Lembaga Pengarah. Keahlian Jawatankuasa adalah bergantung kepada kemahiran dan pengalaman seseorang Pengarah serta kebolehan mereka memberi nilai tambah kepada Jawatankuasa. Badan Penasihat Syariah Badan Penasihat Syariah telah diberi kepercayaan oleh Lembaga Pengarah bagi memastikan operasi dan produk yang ditawarkan oleh Kumpulan adalah berlandaskan Syariah. Kesemua perkara yang memerlukan pandangan dan keputusan Badan Penasihat Syariah akan dibentangkan di dalam mesyuarat Badan Penasihat Syariah di mana ianya juga dihadiri oleh pihak Pengurusan dan wakil dari Bahagian Syariah. Kemudian, perkara tersebut akan dibawa kepada Lembaga Pengarah untuk memaklumkan keputusan yang telah dibuat. Badan Penasihat Syariah kini terdiri daripada lima (5) orang ahli di mana kesemuanya mempunyai pengalaman dan kepakaran yang diperlukan di dalam bidang masing-masing. Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon merupakan Pengerusi Badan Penasihat Syariah sekarang. Enam (6) mesyuarat Badan Penasihat Syariah telah diadakan sepanjang tahun kewangan yang dikaji dengan butiran kehadiran setiap ahli seperti berikut:

The Code recommends the appointment of a Senior Independent Non-Executive Director to whom concerns may be conveyed by shareholders and other stakeholders. Pursuant to this, the Board has identified and appointed Encik Mahadzir Azizan as a Senior Independent Non-Executive Director. Board Committees To enable the Board to discharge its duties effectively whilst enhancing business and operational efficacy, the Board delegates certain responsibilities to four (4) Board Committees, namely: • Audit Committee • Nomination Committee • Remuneration Committee; and • Risk Management Committee All Committees have clear written terms of reference and the Board receives reports of their proceedings and deliberations. The Chairman of the various Committees will report to the Board the outcome of their meetings and such reports are incorporated in the minutes of the Board Meeting. The Committees’ membership are based on Directors’ skills and experience as well as their ability to add value to the Committees. Shariah Advisory Body The Shariah Advisory Body is entrusted by the Board to ensure that the Group’s operations and products offered are in accordance with the Shariah. All matters which require the Shariah Advisory Body’s opinion and decision are deliberated at Shariah Advisory Body meetings with the attendance of the Management and representatives from the Shariah Division. Thereon, the said matters are brought to the attention of the Board for an informed decision making. The Shariah Advisory Body currently consists of five (5) members, all of whom have the necessary experiences and expertise in their respective fields. The current Chairman of the Shariah Advisory Body is Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon. The Shariah Advisory Body meets six (6) times during the financial year under review with details of meetings’ attendance of each member as follows:






Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon

6/6

100

Y. Bhg. Ustaz Mohd Bakir Hj. Mansor

6/6

100

Y. Bhg. Dr. Aida Othman

6/6

100

Y. Bhg. Prof. Madya Dr. Muhamad Rahimi Osman

6/6

100

Y. Bhg. Datuk Abdul Hamid Said (Bersara pada 1 April 2011/Retired on 1 April 2011)

2/2

100

Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz (Dilantik pada 1 Jun 2011/Appointed on 1 June 2011)

2/3

67

Polisi Pemberitahuan Maklumat dan Polisi Penipuan & Integriti Syarikat telah mewujudkan Polisi Pemberitahuan Maklumat lanjutan daripada Akta Perlindungan Pemberi Maklumat, 2010 dengan objektif seperti berikut:1) Untuk membolehkan pekerja-pekerja menyuarakan apa-apa kemusykilan mengenai integriti dan salah laku disamping membolehkan Lembaga Pengarah diberitahu pada peringkat awal mana-mana salah laku atau perbuatan yang tidak sopan; 2) Untuk melindungi pekerja-pekerja daripada hukuman atau perlakuan yang tidak adil akibat menyuarakan kemusykilan dengan cara yang betul selaras dengan Polisi; dan 3) Untuk membentuk budaya keterbukaan, akauntabiliti dan integriti dalam Syarikat. Di samping itu, Syarikat juga telah mewujudkan Polisi Penipuan & Integriti untuk memudahkan perkembangan kawalan yang akan membantu dalam pengesanan dan pencegahan penipuan terhadap Syarikat secara dalaman dan luaran. Objektif Polisi Penipuan & Integriti adalah seperti berikut:1) Bagi memastikan tindakan segera dan konsisten serta memastikan keberkesanan dan keberkaitan kawalan dalaman dalam mengurangkan risiko penipuan; 2) Untuk melindungi Syarikat dari kerugian kewangan, kerosakan reputasi serta menanam keyakinan pesertapeserta dan pihak berkepentingan lain; dan 3) Untuk membolehkan Pengurusan memberi tumpuan kepada pencapaian strategi perniagaan dan sasaran. Kedua-dua Polisi di atas boleh diperolehi di portal Syarikat.

Whistle Blowing Policy and Fraud & Integrity Policy The Company has established the Whistle Blowing Policy in response to the Whistleblower Protection Act, 2010 with the following objectives:1) To enable the employees to raise any concerns of integrity and misconduct as well as to enable the Board to be informed at an early stage of any misconduct or improprieties; 2) To protect the employees from punishment or unfair treatment for disclosing concerns in good faith in accordance with the Policy; and 3) To develop a culture of openness, accountability and integrity within the Company. In addition, the Company has also established the Fraud & Integrity Policy to facilitate the development of controls that will aid in the detection and prevention of fraud against the Company internally and externally. The objectives of the Fraud & Integrity Policy are as follows:1) To ensure prompt and consistent action as well as to ensure the effectiveness and relevance of internal control in mitigating fraud risk; 2) To safeguard the Company from financial losses, reputation damage as well as to instill confidence of participants and stakeholders; and 3) To enable Management to focus on achieving business strategies and target. Both of the above Policies are available on the Company’s portal.

045

046




Sumber Maklumat kepada Lembaga Pengarah Lembaga Pengarah mempunyai akses penuh dan secukupnya kepada maklumat berkenaan kertas Lembaga Pengarah yang diedarkan sebelum mesyuarat agar Pengarah boleh mendapatkan penjelasan lanjut, apabila diperlukan bagi mendapatkan penerangan yang sewajarnya sebelum mesyuarat. Kertas Lembaga Pengarah merangkumi minit mesyuarat Lembaga Pengarah yang lalu, minit mesyuarat semua Jawatankuasa Lembaga Pengarah dan laporan yang berkaitan isu-isu mesyuarat yang meliputi kewangan, pelaburan, teknologi maklumat, operasi, sumber manusia dan perkara berkaitan dengan pematuhan peraturan. Pengarah Urusan Kumpulan akan memaklumkan kepada Lembaga Pengarah tepat pada masanya, berhubung semua isu penting yang boleh mempengaruhi prestasi Kumpulan dan pembangunan utama yang berlaku dalam Kumpulan. Semua ahli Lembaga Pengarah mempunyai akses yang tidak terhad kepada maklumat yang tepat dan pada masa yang ditetapkan serta khidmat nasihat Setiausaha Syarikat yang bertanggungjawab untuk memastikan supaya prosedur mesyuarat Lembaga Pengarah dituruti dan semua syarat serta peraturan yang diterima pakai dipatuhi. Para Pengarah juga boleh mendapatkan nasihat badan profesional bebas dalam menjalankan tugas mereka, di bawah tanggungan Takaful Malaysia. Pelantikan sebagai ahli Lembaga Pengarah Pelantikan ahli Lembaga Pengarah yang baru dipertimbang dan dinilai oleh Jawatankuasa Pemilihan dan Jawatankuasa tersebut akan mengesyorkan pelantikan tersebut kepada Lembaga Pengarah untuk diluluskan. Selaras dengan Akta Takaful, 1984 dan keperluan Bank Negara Malaysia (“BNM”), pelantikan Pengarah adalah tertakluk kepada kelulusan BNM. Setiausaha Syarikat akan memastikan supaya semua pelantikan dilakukan dengan cara yang betul di mana semua maklumat yang diperlukan diperolehi serta semua syarat perundangan dan peraturan dipenuhi. Jawatankuasa Pemilihan Jawatankuasa Pemilihan kini terdiri daripada lima (5) Pengarah Bukan Eksekutif di mana tiga (3) daripada mereka adalah Pengarah Bebas. Pengerusi Jawatankuasa kini ialah Encik Zakaria Ismail, seorang Pengarah Bukan Eksekutif Bebas. Jawatankuasa Pemilihan telah bermesyuarat sebanyak empat (4) kali sepanjang tahun kewangan yang dikaji dengan butiran kehadiran setiap ahli seperti berikut:

Supply of Information to the Board The Board has full and timely access to information with Board papers distributed in advance of meetings to enable the Directors to obtain further explanation, where necessary, in order to be properly briefed before the meetings. The Board papers include the minutes of previous Board meeting, minutes of meetings of all Committees of the Board and reports relevant to the issues of the meetings covering areas such as financial, investment, information technology, operational, human resource and regulatory compliance matters. The Group Managing Director keeps the Board informed, on timely basis, of all material matters affecting the Group’s performance and major developments within the Group. All the Board members have unrestricted access to timely and accurate information and access to the advice and services of the Company Secretary, who is responsible for ensuring that Board meeting’s procedures are followed and that all applicable rules and regulations are complied with. The Directors can also seek independent professional advice in furtherance of their duties, at Takaful Malaysia’s expense. Appointment to the Board The appointment of new Board members is considered and evaluated by the Nomination Committee and the Committee would recommend the appointment to the Board for approval. In line with Takaful Act, 1984 and the requirement of Bank Negara Malaysia (“BNM”), the appointment of Directors is subject to the approval from BNM. The Company Secretary will ensure that all the appointments are properly made, all necessary information are obtained, as well as all legal and regulatory requirements are met. Nomination Committee The Nomination Committee currently consists of five (5) Non-Executive Directors, three (3) of whom are Independent Directors. The current Chairman of the Committee is Encik Zakaria Ismail, an Independent Non-Executive Director. The Nomination Committee met four (4) times during the financial year under review with details of meetings’ attendance of each member as follows:



Encik Zakaria Ismail

4/4

100

Encik Johan Abdullah

4/4

100

Puan Rozaida Omar

3/4

75

Y. Bhg. Dato’ Sulaiman Mohd Yusof

4/4

100






Encik Mahadzir Azizan (Dilantik pada 21 Ogos 2011/Appointed on 21 August 2011)

1/1

100

Y. Bhg. Dato’ Mohamed Hassan Md Kamil (Ahli sehingga 21 Ogos 2011/Member up to 21 August 2011)

3/3

100

Jawatankuasa Pemilihan telah diberikan mandat oleh Lembaga Pengarah dan terma rujukannya untuk membentang kepada Pengarah cadangan pemilihan ahli Lembaga Pengarah, Pengarah Urusan Kumpulan/Ketua Pegawai Eksekutif dan Pengurus Besar, dan sentiasa mengkaji syarat-syarat pelantikan Pengarah, Pengarah Urusan Kumpulan/Ketua Pegawai Eksekutif dan Pengurus Besar. Jawatankuasa Pemilihan juga diberi mandat untuk menilai keberkesanan Lembaga Pengarah, Jawatankuasanya dan sumbangan setiap Pengarah. Jawatankuasa Pemilihan juga merangka pelan peralihan jawatan bagi Pengurusan Kanan Takaful Malaysia. Penilaian keberkesanan Lembaga Pengarah dan Jawatankuasanya iaitu Jawatankuasa Pemilihan, Jawatankuasa Ganjaran, Jawatankuasa Audit dan Jawatankuasa Pengurusan Risiko di samping sumbangan setiap Pengarah telah dijalankan pada tahun ini. Latihan Pengarah Semua ahli Lembaga Pengarah telah menghadiri Program Latihan Akreditasi Mandatori (“MAP”). Mereka akan terus menghadiri lain-lain program latihan, kursus dan seminar yang relevan untuk mempertingkatkan kemahiran dan pengetahuan mereka dalam menjalankan tugas mereka sebagai Pengarah. Sepanjang tahun ini, para Pengarah telah menghadiri pelbagai kursus latihan yang berkaitan dengan Bank Negara Malaysia Financial Institutions Directors’ Education (FIDE) Technical Program : Board IT Governance and Risk Management, Half Day Governance Program: Assessing the Risk and Control Environment, Building High Performance Directors Programme (BHPD) 2011, Corporate Directors Conference 2011 “The Resurgence of Corporate Malaysia”, Breakfast Forum : 21st Century Corporation : Driving Sustainable Leadership & Innovation, Seminar: FTSE Bursa Malaysia Index Series Liquidity Rule Enhancement, MINDA Director’s Forum 2011 : Bandung Indonesia - Innovation and People Making it Happen, Board IT Governance & Risk Management Program and MINDA Breakfast Talk “War for Talent : A Battle Malaysia Cannot Afford to Lose”. Takaful Malaysia juga terus menyediakan Pekeliling BNM, Keperluan Penyenaraian Bursa Malaysia yang dikemaskini dan peraturan-peraturan baru lain untuk membantu para Pengarah dalam mendapatkan maklumat mengenai perkembangan terkini.

The Nomination Committee is empowered by the Board and its terms of reference are to bring to the Board recommendations as to the appointment of new Directors, Group Managing Director/Chief Executive Officer and General Managers, and keeps under review the terms of appointment of Directors, Group Managing Director/Chief Executive Officer and General Managers. The Nomination Committee is also empowered to assess the effectiveness of the Board, its Committees and the contribution of each individual Director. The Nomination Committee also discussed the succession plan of the Senior Management of Takaful Malaysia. An assessment of the effectiveness of the Board as a whole and its Committees i.e. Nomination Committee, Remuneration Committee, Audit Committee and Risk Management Committee as well as the contribution of each individual director was carried out during the year. Directors’ Training All Directors have attended the Mandatory Accreditation Programme (“MAP”). The Directors will continue to attend other relevant training programmes, courses and seminars to enhance their skills and knowledge in discharging their duties as Directors. During the year, the Directors attended training courses related to Bank Negara Malaysia Financial Institutions Directors’ Education (FIDE) Technical Program : Board IT Governance and Risk Management, Half Day Governance Program: Assessing the Risk and Control Environment, Building High Performance Directors Programme (BHPD) 2011, Corporate Directors Conference 2011 “The Resurgence of Corporate Malaysia”, Breakfast Forum : 21st Century Corporation : Driving Sustainable Leadership & Innovation, Seminar: FTSE Bursa Malaysia Index Series Liquidity Rule Enhancement, MINDA Director’s Forum 2011 : Bandung Indonesia - Innovation and People Making it Happen, Board IT Governance & Risk Management Program and MINDA Breakfast Talk “War for Talent : A Battle Malaysia Cannot Afford to Lose”. Takaful Malaysia also continued to provide BNM’s Circulars, updated Bursa Malaysia Listing Requirements and new regulations to assist the Directors in keeping abreast with the latest development.

047

048




Pemilihan Semula Tataurusan Pertubuhan Syarikat memperuntukkan agar semua Pengarah termasuk Pengarah Urusan Kumpulan/ Ketua Pegawai Eksekutif untuk menawarkan diri mereka bagi pemilihan semula sekurang-kurangnya setiap tiga (3) tahun sekali selaras dengan Keperluan Penyenaraian Bursa Malaysia. Bagi membantu para pemegang saham membuat keputusan, maklumat yang mencukupi seperti profil peribadi, kehadiran mesyuarat dan pegangan saham dalam Syarikat bagi setiap Pengarah yang bersedia untuk pemilihan semula disediakan dalam Laporan Tahunan. GANJARAN PENGARAH Peringkat dan Kandungan Ganjaran Jawatankuasa Ganjaran bertanggungjawab mengesyorkan rangka kerja ganjaran bagi para Pengarah termasuk pakej ganjaran bagi Pengarah Eksekutif dan Pengurus Besar kepada Lembaga Pengarah bagi memastikan Takaful Malaysia mampu menarik minat, memberi motivasi dan mengekalkan ahli Lembaga Pengarah dan Pengurusan Kanan yang diperlukan untuk mentadbir dengan jayanya. Ganjaran para Pengarah adalah sejajar dengan amalan keseluruhan Kumpulan mengenai ganjaran dan imbuhan. Pengarah Eksekutif tidak terlibat dalam apa juga cara dalam menentukan ganjarannya sendiri. Lembaga Pengarah secara keseluruhannya menentukan ganjaran bagi Pengarah Bukan Eksekutif. Yuran para Pengarah diluluskan oleh para pemegang saham di Mesyuarat Agung Tahunan. Jawatankuasa Ganjaran Jawatankuasa Ganjaran kini terdiri daripada tiga (3) orang Pengarah Bukan Eksekutif, di mana dua (2) daripada mereka adalah Pengarah Bebas. Pengerusi Jawatankuasa kini ialah Encik Mahadzir Azizan, seorang Pengarah Bukan Eksekutif Bebas Kanan. Jawatankuasa Ganjaran telah bermesyuarat sebanyak empat (4) kali sepanjang tahun kewangan yang dikaji dengan butiran kehadiran setiap ahli seperti berikut:

Re-election The Articles of Association provide for all Directors including the Group Managing Director/Chief Executive Officer to submit themselves for re-election at least every three (3) years in compliance with Bursa Malaysia Listing Requirements. To assist shareholders in their decision, sufficient information, such as personal profile, meetings attendance and shareholding in the Company of each director standing for re-election are furnished in the Annual Report. DIRECTORS’ REMUNERATION Level and Make-up of Remuneration The Remuneration Committee is responsible in recommending the remuneration framework for the Directors as well as the remuneration package of Executive Director and General Managers to the Board so as to ensure that Takaful Malaysia attracts, motivates and retains the Directors and Senior Management needed to run it successfully. The remuneration of Directors is in line with the Group’s overall practice on compensation and benefits. The Executive Director does not participate in any way in determining his individual remuneration. The Board as a whole determines the remuneration of NonExecutive Directors. Directors’ fees are approved by the shareholders at the Annual General Meeting. Remuneration Committee The Remuneration Committee currently consists of three (3) Non-Executive Directors, two (2) of whom are Independent Directors. The current Chairman of the Committee is Encik Mahadzir Azizan, a Senior Independent Non-Executive Director. The Remuneration Committee met four (4) times during the financial year under review with details of meetings’ attendance of each member as follows:



Encik Mahadzir Azizan

4/4

100


4/4

100


4/4

100

Y. Bhg. Dato’ Mohamed Hassan Md Kamil (Ahli sehingga 21 Ogos 2011/Member up to 21 August 2011)

3/3

100




Pendedahan Ringkasan maklumat mengenai ganjaran para Pengarah bagi tahun kewangan berakhir 31 Disember 2011 adalah seperti berikut:

Disclosure The details of the remuneration for the Directors for the financial year ended 31 December 2011 are as follows:

Pengarah Eksekutif/ Pengarah Bukan Eksekutif/ Jumlah/ Executive Director Non-Executive Directors Total (RM’000) (RM’000) (RM’000) Yuran/Fees Gaji dan lain-lain emolumen/ Salaries and other emoluments Manfaat seumpamanya/ Benefits-in-kind Jumlah/Total

0

579

579

1,723

40

1,763

7

5

12

1,730

624

2,354

Ganjaran Pengarah/ Jumlah Pengarah/ Directors’ Remuneration Number of Directors Pengarah Eksekutif/ Pengarah Bukan Eksekutif/ Executive Director Non-Executive Directors Dibawah/Below than RM50,000

-

-

RM50,001 – RM100,000

-

4

RM100,001 – RM150,000

-

2

RM150,001 – RM200,000

-

-

Melebihi/More than RM200,001

1

-

Jumlah/Total

1

6

PEMEGANG SAHAM

SHAREHOLDERS

Dialog antara Syarikat dan para Pelabur Takaful Malaysia sedar akan kepentingan untuk sentiasa memaklumkan kepada para pemegang saham berkenaan semua perkembangan utama Takaful Malaysia dari semasa ke semasa. Pengerusi dan Pengarah Urusan Kumpulan mengadakan perbincangan dengan pemegang saham sekurang-kurangnya sekali (1) setahun semasa Mesyuarat Agung Tahunan. Selain itu, pelbagai pendedahan dan pengumuman dibuat kepada Bursa Malaysia termasuk keputusan suku tahunan, laporan setengah tahunan dan keputusan tahunan bagi memudahkan penyebaran maklumat kepada pemegang saham. Tambahan lagi, maklumatmaklumat lain mengenai Syarikat boleh diperolehi di laman web Takaful Malaysia, iaitu www.takaful-malaysia.com.my.

Dialogue between the Company and Investors Takaful Malaysia recognizes the importance to keep the shareholders well-informed of all major developments of Takaful Malaysia on a timely basis. The Chairman and Group Managing Director hold discussions with shareholders at least once (1) a year during the Annual General Meeting. Additionally, various disclosures and announcements made to Bursa Malaysia including quarterly, semi-annual returns and annual results facilitate the dissemination of information to the shareholders. In addition, other information about the Company is available on Takaful Malaysia’s website, www.takaful-malaysia.com.my.

049

050




Mesyuarat Agung Tahunan Mesyuarat Agung Tahunan adalah forum utama bagi dialog dengan pemegang saham. Selain dari agenda biasa untuk Mesyuarat Agung Tahunan, Lembaga Pengarah akan membentangkan laporan prestasi dan pencapaian perniagaan seperti yang dinyatakan dalam Laporan Tahunan dan memberi peluang kepada pemegang saham untuk mengemukakan soalan mengenai aktiviti perniagaan Kumpulan.

The Annual General Meeting The Annual General Meeting is the principal forum for dialogues with shareholders. Besides the normal agenda for the Annual General Meeting, the Board presents the progress and performance of the business as contained in the Annual Report and provides opportunities for shareholders to raise questions pertaining to the business activities of the Group.

Bagi pemilihan semula para Pengarah, Lembaga Pengarah akan memastikan maklumat sepenuhnya dimaklumkan menerusi notis mesyuarat berhubung para Pengarah yang akan bersara dan mana-mana Pengarah yang menawarkan diri untuk berkhidmat sekiranya dilantik semula.

For re-election of Directors, the Board will ensure that full information is disclosed through the notice of meeting regarding directors who are retiring and who are willing to serve if reelected.

Setiap perkara urusan khas yang terkandung dalam notis mesyuarat akan disertakan dengan penyata penerangan bagi resolusi yang dicadangkan untuk memudahkan pemahaman sepenuhnya dan penilaian terhadap isu berkaitan.

Each item of special business included in the notice of the meeting will be accompanied by an explanatory statement for the proposed resolution to facilitate full understanding and evaluation of issues involved.

AKAUNTABILITI DAN AUDIT

ACCOUNTABILITY AND AUDIT

Laporan Kewangan Lembaga Pengarah perlu memastikan yang penyata kewangan tahunan dan pengumuman suku tahunan kepada pemegang saham disediakan selaras dengan piawaian perakaunan yang diluluskan dan membentangkan penilaian yang seimbang dan boleh difahami mengenai kedudukan dan prospek Kumpulan. Jawatankuasa Audit membantu Lembaga Pengarah memastikan ketepatan dan kelengkapan maklumat dengan mengkaji dan mencadangkan mengguna pakai maklumat bagi tujuan pendedahan.

Financial Reporting The Board ensures that the annual financial statements and quarterly announcements to shareholders are prepared in accordance with approved accounting standards and present a balance and understandable assessment of the Group’s position and prospects. The Audit Committee assists the Board in ensuring accuracy and adequacy of information by reviewing and recommending for adoption information for disclosure.

Penyata Tanggungjawab Para Pengarah Berkenaan Penyata Kewangan Menurut Akta Syarikat, 1965, Lembaga Pengarah perlu menyediakan penyata kewangan bagi setiap tahun kewangan yang memberi gambaran yang benar dan saksama mengenai keadaan urusan hal-ehwal Syarikat dan Kumpulan sehingga akhir tahun kewangan serta penyata hasil dan aliran tunai Syarikat dan Kumpulan untuk tahun kewangan. Para Pengarah memberi pertimbangan bahawa, dalam menyediakan penyata kewangan bagi tahun berakhir 31 Disember 2011, Kumpulan telah menggunakan dasar perakaunan yang sesuai, digunakan secara konsisten dan disokong oleh pertimbangan dan anggaran yang wajar dan berhemat. Para Pengarah juga telah mempertimbangkan bahawa kesemua piawaian perakaunan yang berkaitan dipatuhi dan mengesahkan bahawa penyata kewangan disediakan mengikut dasar perniagaan berterusan.

Statement of Directors’ Responsibilities in Relation to Financial Statements The Directors are required under the Companies Act, 1965, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and the Group as at the end of the financial year and of the income statement and cash flows for the Company and the Group for the financial year. The Directors consider that, in preparing the financial statements for the year ended 31 December 2011, the Group has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates. The Directors have also considered that all applicable accounting standards have been followed and confirm that the financial statements have been prepared on the going concern basis.




Para Pengarah bertanggungjawab memastikan supaya Syarikat menyediakan rekod perakaunan yang secukupnya yang menunjukkan ketepatan yang munasabah mengenai kedudukan kewangan Syarikat bagi membolehkan mereka memastikan agar penyata kewangan tersebut mematuhi keperluan Akta Syarikat, 1965. Para Pengarah mempunyai tanggungjawab secara am untuk mengambil langkah yang munasabah dalam memastikan perlindungan aset Syarikat dan Kumpulan terpelihara dan mengelakkan serta mengesan sebarang bentuk penipuan dan kesalahan undang-undang. Kawalan Dalaman dan Pengurusan Risiko Lembaga Pengarah mengiktiraf tanggungjawabnya dan komited untuk mengekalkan pelaksanaan sistem kawalan dalaman dan amalan pengurusan risiko yang berwibawa. Walau bagaimanapun, sistem tersebut hanya dapat memberikan jaminan berpatutan dan bukannya mutlak daripada sebarang salah nyata atau kerugian ketara. Penyata Kawalan Dalaman yang dibentangkan di muka surat 55 hingga 60 dalam Laporan Tahunan ini memberikan tinjauan menyeluruh mengenai kedudukan kawalan dalaman Kumpulan. Hubungan dengan Juruaudit Peranan Jawatankuasa Audit dinyatakan di muka surat 34 hingga 41. Melalui Jawatankuasa Audit Lembaga Pengarah, Syarikat telah mewujudkan hubungan yang telus dan sesuai dengan juruaudit Syarikat, sama ada dalaman mahupun luaran. Jika perlu, juruaudit luar akan dijemput untuk menghadiri mesyuarat Jawatankuasa. Penyata ini dibuat selaras dengan resolusi Lembaga Pengarah bertarikh 22 Februari 2012.

The Directors are responsible for ensuring that the Company maintains adequate accounting records which disclose with reasonable accuracy the financial position of the Company to enable them to ensure that the financial statements comply with the requirements of the Companies Act, 1965. The Directors generally have the duty to take such steps as are reasonably available to them to safeguard the assets of the Company and the Group, and to prevent and detect fraud and other irregularities. Internal Control and Risk Management The Board acknowledges its responsibility and is committed in maintaining a sound system of internal control and risk management practice. However, such system can only provide reasonable but not absolute assurance against material misstatements or losses. The Statement on Internal Control furnished on pages 55 to 60 in the Annual Report provides an overview of the state of internal control within the Group. Relationships with the Auditors The role of the Audit Committee is as stated on pages 34 to 41. Through the Audit Committee of the Board, the Company has established transparent and appropriate relationship with the Company’s auditors, both internal and external. If required, the external auditors are invited to attend meetings of the Committee. This statement is made in accordance with the resolution of the Board of Directors dated 22 February 2012.

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Maklumat Pematuhan Tambahan

Additional Compliance Information

1. PENGGUNAAN DANA Tiada dana yang diterbitkan/digunakan oleh Takaful Malaysia daripada cadangan korporat sepanjang tahun kewangan. 2. PEMBELIAN BALIK SAHAM Tiada sebarang pembelian balik saham dilakukan oleh Takaful Malaysia sepanjang tahun kewangan. 3. OPSYEN, WARAN ATAU SEKURITI BOLEH TUKAR Tiada sebarang opsyen, waran atau sekuriti boleh tukar yang diterbitkan oleh Takaful Malaysia sepanjang tahun kewangan. 4. PROGRAM AMERICAN DEPOSITORY RECEIPT (ADR) ATAU GLOBAL DEPOSITORY RECEIPT (GDR) Takaful Malaysia tidak menaja sebarang program ADR atau GDR sepanjang tahun kewangan. 5. PENGENAAN SEKATAN/PENALTI Tiada sekatan dan/atau penalti yang dikenakan ke atas Takaful Malaysia dan subsidiari, para Pengarah atau Pengurusannya oleh pihak berkuasa berkaitan sepanjang tahun kewangan. 6. YURAN BUKAN AUDIT Yuran bukan audit yang dibayar kepada juruaudit luar pada tahun kewangan berjumlah RM18,000. 7. VARIASI KEPUTUSAN Tiada variasi ketara (berbeza sebanyak 10% atau lebih) antara keputusan untuk tahun kewangan dan keputusan tidak diaudit yang diumumkan sebelumnya. Takaful Malaysia tidak mengeluarkan sebarang anggaran, ramalan atau unjuran keuntungan bagi tahun kewangan.

1. UTILISATION OF PROCEEDS There were no proceeds raised/utilised by Takaful Malaysia from corporate proposals during the financial year. 2. SHARE BUYBACKS There were no share buybacks by Takaful Malaysia during the financial year. 3. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES No options, warrants or convertible securities were issued by Takaful Malaysia during the financial year. 4. AMERICAN DEPOSITORY RECEIPT (ADR) OR GLOBAL DEPOSITORY RECEIPT (GDR) PROGRAMME Takaful Malaysia did not sponsor any ADR or GDR programme during the financial year. 5. IMPOSITIONS OF SANCTIONS/PENALTIES There were no sanctions and/or penalties imposed on Takaful Malaysia and its subsidiaries, Directors or Management by relevant regulatory bodies during the financial year. 6. NON-AUDIT FEES There were RM18,000 non-audit fees paid to external auditors during the financial year. 7. VARIATION IN RESULTS There was no significant variation (differing by 10% or more) between the results for the financial year and the unaudited results previously announced. Takaful Malaysia did not release any profit estimate, forecast or projections for the financial year.

8. JAMINAN KEUNTUNGAN Tiada jaminan keuntungan diberi oleh Takaful Malaysia sepanjang tahun kewangan.

8. PROFIT GUARANTEE There was no profit guarantee given by Takaful Malaysia during the financial year.

9. KONTRAK PENTING MELIBATKAN PENGARAH DAN PEMEGANG SAHAM UTAMA Tiada kontrak penting yang dimeterai oleh Takaful Malaysia dan syarikat-syarikat subsidiarinya yang membabitkan kepentingan para Pengarah dan Pemegang Saham utama, sama ada yang masih wujud pada akhir tahun kewangan atau yang dimeterai sejak akhir tahun kewangan sebelumnya kecuali untuk urus niaga pihak berkaitan yang dinyatakan dalam Nota 44 kepada penyata kewangan.

9. MATERIAL CONTRACTS INVOLVING DIRECTORS AND MAJOR SHAREHOLDERS There were no material contracts entered into by Takaful Malaysia and its subsidiary companies involving Directors and major Shareholders’ interest, either still subsisting at the end of the financial year or entered into since the end of the previous financial year except for related parties transactions disclosed in Note 44 to the financial statements.




10. URUSNIAGA PIHAK BERKAITAN YANG BERULANG / RECURRENT RELATED PARTY TRANSACTIONS Nilai Urusniaga Sebenar dari 1 Januari 2011 hingga 31 Disember 2011/ Actual Transaction Value from 1 January 2011 to 31 December 2011 (RM’000)

Bentuk Urusniaga/ Nature of Transactions

Pihak Berkaitan yang Berurusniaga/ Related Parties Transacted with

Pihak Berkaitan, kepentingan mereka dan bentuk hubungan dengan Kumpulan Takaful Malaysia/ Related Parties, their interests and nature of relationships with the Takaful Malaysia Group

Sewa bangunan pejabat yang dibayar kepada Takaful Malaysia oleh Bank Islam Malaysia Berhad (BIMB)

BIMB

BIMB adalah subsidiari 51% milik BHB. BHB adalah 2,642 pemegang saham utama Takaful Malaysia yang memegang kepentingan ekuiti sebanyak 65.22% dalam Syarikat pada 31 Disember 2011. Dato’ Paduka Ismee Ismail dan Encik Johan Abdullah adalah Pengarah BHB dan BIMB dan juga Pengarah Takaful Malaysia, yang dilantik oleh BHB. Dato’ Paduka Ismee Ismail dan Encik Johan Abdullah tidak mempunyai sebarang kepentingan langsung atau tidak langsung dalam BHB, BIMB dan Takaful Malaysia.

Rental of office premises payable to Takaful Malaysia by Bank Islam Malaysia Berhad (BIMB)

Puan Rozaida Omar adalah Pengarah BHB dan juga Pengarah Takaful Malaysia, yang dilantik oleh BHB. Dato’ Mohamed Hassan Md. Kamil adalah Pengarah Takaful Malaysia, yang dilantik oleh BHB. Puan Rozaida Omar dan Dato’ Mohamed Hassan Md. Kamil tidak mempunyai sebarang kepentingan langsung atau tidak langsung dalam BHB dan Takaful Malaysia. BIMB is a 51% owned subsidiary of BHB. BHB is a major shareholder of Takaful Malaysia holding an equity interest of 65.22% in the Company as at 31 December 2011. Dato’ Paduka Ismee Ismail and Encik Johan Abdullah are Directors in BHB and BIMB and are also Directors in Takaful Malaysia, nominated by BHB. Dato’ Paduka Ismee Ismail and Encik Johan Abdullah do not have any direct or indirect interest in BHB, BIMB and Takaful Malaysia. Puan Rozaida Omar is a director in BHB and is also a director in Takaful Malaysia, nominated by BHB. Dato’ Mohamed Hassan Md. Kamil is a director in Takaful Malaysia, nominated by BHB. Puan Rozaida Omar and Dato’ Mohamed Hassan Md. Kamil do not have any direct or indirect interest in BHB and Takaful Malaysia.

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10. URUSNIAGA PIHAK BERKAITAN YANG BERULANG / RECURRENT RELATED PARTY TRANSACTIONS Nilai Urusniaga Sebenar dari 1 Januari 2011 hingga 31 Disember 2011/ Actual Transaction Value from 1 January 2011 to 31 December 2011 (RM’000)

Bentuk Urusniaga/ Nature of Transactions

Pihak Berkaitan yang Berurusniaga/ Related Parties Transacted with

Pihak Berkaitan, kepentingan mereka dan bentuk hubungan dengan Kumpulan Takaful Malaysia/ Related Parties, their interests and nature of relationships with the Takaful Malaysia Group

Pajakan mesin penyalin

Syarikat Al-Ijarah Sdn Bhd (Syarikat Al-Ijarah)

Syarikat Al-Ijarah adalah subsidiari milik penuh BHB. 394 BHB adalah pemegang saham utama Takaful Malaysia yang memegang kepentingan ekuiti Syarikat sebanyak 65.22% pada 31 Disember 2011.

Lease of copier machine

Dato’ Paduka Ismee Ismail dan Encik Johan Abdullah adalah Pengarah BHB dan BIMB dan juga Pengarah Takaful Malaysia, yang dilantik oleh BHB. Dato’ Paduka Ismee Ismail dan Encik Johan Abdullah tidak mempunyai sebarang kepentingan langsung atau tidak langsung dalam BHB, BIMB dan Takaful Malaysia. Puan Rozaida Omar adalah Pengarah BHB dan juga Pengarah Takaful Malaysia, yang dilantik oleh BHB. Dato’ Mohamed Hassan Md. Kamil adalah Pengarah Takaful Malaysia, yang dilantik oleh BHB. Puan Rozaida Omar dan Dato’ Mohamed Hassan Md. Kamil tidak mempunyai sebarang kepentingan langsung atau tidak langsung dalam BHB dan Takaful Malaysia. Syarikat Al-Ijarah is a wholly owned subsidiary of BHB. BHB is a major shareholder of Takaful Malaysia holding an equity interest of 65.22% in the Company as at 31 December 2011. Dato’ Paduka Ismee Ismail and Encik Johan Abdullah are Directors in BHB and BIMB and are also Directors in Takaful Malaysia, nominated by BHB. Dato’ Paduka Ismee Ismail and Encik Johan Abdullah do not have any direct or indirect interest in BHB, BIMB and Takaful Malaysia. Puan Rozaida Omar is a director in BHB and is also a director in Takaful Malaysia, nominated by BHB. Dato’ Mohamed Hassan Md. Kamil is a director in Takaful Malaysia, nominated by BHB. Puan Rozaida Omar and Dato’ Mohamed Hassan Md. Kamil do not have any direct or indirect interest in BHB and Takaful Malaysia.


Penyata Kawalan Dalaman

Statement on Internal Control

Penyata ini disediakan menurut Keperluan Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad berkaitan dengan Pematuhan Kumpulan terhadap Prinsip dan peruntukanperuntukan Amalan Terbaik yang berkaitan dengan kawalan dalaman seperti yang digariskan di dalam Kod Urus Tadbir Korporat Malaysia (“Kod”).

This statement is made pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad with regard to the Group’s compliance with the Principles and Best Practices provisions relating to internal controls as stipulated in the Malaysian Code on Corporate Governance (“the Code”).

Tanggungjawab Lembaga Pengarah

Board Responsibility

Lembaga Pengarah mengiktiraf bahawa mereka bertanggungjawab sepenuhnya terhadap persekitaran kawalan dalaman dan keberkesanannya dalam menjaga kepentingankepentingan pemegang-pemegang saham dan aset-aset Kumpulan.

The Board acknowledges its overall responsibility for the internal control environment and its effectiveness in safeguarding shareholders’ interests and Group’s assets.

Sistem kawalan dalaman turut memenuhi keperluan untuk operasi-operasi perniagaan yang berkesan dan cekap, laporan kewangan yang baik dan prosedur-prosedur kawalan, serta pematuhan terhadap undang-undang dan peraturan-peraturan yang berkaitan. Lembaga Pengarah turut mengakui bahawa penyemakan terhadap sistem kawalan dalaman Kumpulan adalah usaha yang jitu dan berterusan, dirangka untuk mengurus dan menghalang risiko kegagalan untuk mencapai objektifobjektif perniagaan. Sewajarnya, sistem kawalan dalaman Kumpulan turut memberikan jaminan yang munasabah keatas salah nyata atau kerugian yang ketara. Proses-Proses Kawalan Dalaman Utama Proses-proses kawalan dalaman utama yang telah ditubuhkan oleh Lembaga Pengarah dalam menyemak kecukupan serta integriti sistem kawalan dalaman termasuk pematuhan kepada undang-undang, peraturan-peraturan, syarat-syarat, arahanarahan dan garis panduan-garis panduan adalah seperti berikut: Rangka Kerja Pengurusan Risiko Lembaga Pengarah mengakui bahawa mengenal pasti dan mengurus risiko utama memainkan peranan penting dan merupakan asas dalam mencapai objektif-objektif perniagaan Kumpulan serta dalam menguruskan operasi hariannya. Bagi mencapai objektif-objektif tersebut, Lembaga Pengarah telah menyediakan Rangka Kerja Pengurusan Risiko Seluruh Perniagaan (“ERM”) dalam Kumpulan bagi memastikan supaya wujud proses yang berterusan bagi mengenalpasti, menilai, memantau dan mengurus pendedahan risiko utama yang sememangnya lazim dalam operasi perniagaannya. Kumpulan telah menubuhkan struktur proses pengurusan risiko yang mana peranan serta tanggungjawab Jawatankuasa Lembaga Pengurusan Risiko (“RISCO”) dan Jawatankuasa Pengurusan Risiko (“MRC”) adalah dinyatakan secara jelas.

The system of internal control addresses the need for an effective and efficient business operations, sound financial reporting and control procedures, and compliance with relevant laws and regulations. The Board also recognises that reviewing the Group’s system of internal control is a concerted and continuing process, designed to manage and appropriately mitigate the risk of failure in achieving business objectives. Accordingly, the Group’s system of internal control provides reasonable assurance against material misstatement or loss. Key Internal Control Processes The key internal control processes that the Board has established in reviewing the adequacy and integrity of the system of internal control, including compliance with applicable laws, regulations, rules, directives and guidelines, are as follows: Risk Management Framework The Board acknowledges the identification and the management of risks involved play an important and integral part in achieving the Group’s business objectives and the management of its daily operations. In pursuing these objectives, the Board has put in place an Enterprise Risk Management (“ERM”) Framework within the Group to ensure there is an on-going process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations. The Group has established a structured risk management process of which the roles and responsibility of Risk Management Committee of the Board (“RISCO”) focusing on strategic and policies matters and Management Risk Committee (“MRC”) focusing on tactical and operational aspect are clearly spelt out.

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Semakan Penilaian Risiko Korporat telah dijalankan pada tahun ini dan telah dibentang dan diluluskan pada bulan September 2011 oleh RISCO dan kemas kini seterusnya akan dikaji semula pada setiap suku tahun. Semakan ini adalah perlu untuk menghadapi persekitaran perniagaan yang sentiasa berubah seiring dengan peningkatan keperluan kawal selia fungsi pengurusan risiko bebas dan teguh.

Revision to the Corporate Risk Rating was undertaken during the year and was presented and approved in September 2011 by the RISCO and subsequent updates are reviewed on a quarterly basis. This revision is necessary to cope with the ever changing environment of the business in tandem with the enhanced regulatory requirements of an independent and robust risk management functions.

Semakan melibatkan pengasingan Rangka Kerja ERM kepada Pengurusan Risiko Kewangan yang merangkumi risiko insurans, pelaburan dan Syariah, manakala Pengurusan Risiko Operasi (“ORM”) meliputi sistem, rakyat, proses dan pematuhan. Penjejakan Kejadian Kerugian Operasi juga digunakan sebagai satu lagi penunjuk untuk mengukur keberkesanan Rangka Kerja ORM.

The revision entails the segregation of the ERM Framework to Financial Risk Management which encompasses insurance, investment and Shariah risk; whilst Operational Risk Management (“ORM”) covers system, people, processes and compliance. Operational Loss Incidences tracking are also used as another indicator to gauge the effectiveness of the ORM Framework.

Sebagai pengukur tahap kesediaan entiti kepada malapetaka dan bencana; Kumpulan telah mewujudkan Rangka Kerja Pengurusan Kesinambungan Perniagaan semenjak 2010. Dalam mematuhi syarat-syarat BNM, Kumpulan telah menjalankan dua ujian pemulihan bencana ke atas kerangka utama sistem teknologi maklumat. Sepanjang tempoh kewangan, satu skala penuh latihan simulasi krisis kesinambungan perniagaan telah dijalankan yang melibatkan mobilisasi operasi dari Dataran Kewangan Darul Takaful (ibu pejabat) dan beberapa cawangan yang lain ke tapak pemulihan terpilih.

As a measurement of the level of preparedness of the entity to disasters and disruption; the Group had established a Business Continuity Management Framework since 2010. In compliance with BNM requirements, the Group has conducted two IT disaster recovery tests on the production main server. During the financial year, one full scale crisis simulation exercise on business continuity that involved the mobilisation of operation from Dataran Kewangan Darul Takaful (Head Office) and selected branches to the respective designated recovery sites, was carried out.

MSMR dan Ujian Tekanan telah pun dilaksanakan pada setiap suku tahunan sebagai sebahagian daripada Rangka Kerja Pengurusan Risiko & Modal. Pada tahun ini, Rangka Kerja Pengurusan Aset dan Liabiliti juga telah dilaksanakan untuk memperkukuhkan lagi rangka kerja ini.

Quarterly MSMR and Stress Testing is already in place as part of the Risk & Capital Management Framework. During the year, Asset Liability Management Framework has also been implemented to further strengthen this framework.

Fungsi Audit Dalaman

Internal Audit Function

Bahagian Audit Dalaman (“IAD”) membantu Lembaga Pengarah dan Jawatankuasa Audit menjalankan tanggungjawab mereka. Audit Dalaman berfungsi untuk memberikan jaminan ke atas keberkesanan dan kelancaran sistem kawalan dalaman yang dilaksana oleh pihak pengurusan. Pelan Audit Tahunan dibangunkan dari penilaian terhadap kepentingan risiko, pendedahan dan strategi Perniagaan Kumpulan. IAD juga menyiasat kejadian penipuan, pemalsuan serta memberikan cadangan-cadangan kepada Jawatankuasa Audit untuk menghalang pengulangan semula. Perlaksanaan pelan tindakan pengurusan yang dirangka untuk menghalang kelemahan kawalan yang telah diperakui sepanjang tempoh kewangan dipantau melalui kajian susulan.

The Internal Audit Division (“IAD”) assists the Board and Audit Committee in the discharge of their responsibilities. The internal audit function provides assurance on the efficiency and effectiveness of the internal control systems implemented by management. An annual audit plan is developed based on an assessment of risk priorities, exposures and business strategies of the Group. IAD also investigates incidents of fraud, malpractices and makes necessary recommendation to the Audit Committee to impede recurrence. The implementation of management action plans to address the control lapses noted during the financial year are monitored through follow-up reviews.




Jawatankuasa juga mengkaji dan meluluskan Pelan Audit Tahunan, laporan-laporan serta penemuan termasuk susulan oleh Audit Dalaman. Mereka juga mengkaji tindakan yang diambil ke atas penemuan kawalan dalaman yang dikenalpasti di dalam laporan-laporan yang disediakan oleh juruaudit luar dan badan-badan penguatkuasaan semasa mesyuaratmesyuarat mereka serta menilai kesan ke atas keberkesanan dan kecukupan sistem kawalan dalaman Kumpulan.

The committee reviews and approves the Annual Audit Plan, reports and findings including the follow-ups of the Internal Auditors. They also review the actions taken on internal control issues identified in reports prepared by External Auditors and Regulatory Bodies during their meetings and consider the impact on the effectiveness and adequacy of the Group’s internal control system.

Elemen Penting Kawalan Dalaman

Key Elements of Internal Control

Elemen-elemen utama dalam kawalan dalaman yang diwujudkan oleh Lembaga Pengarah bagi menyediakan kawalan dalaman yang berkesan termasuk pematuhan terhadap undang-undang, peraturan dan garis panduan adalah seperti berikut:

The key elements of internal control that the Board has established which provide effective internal controls including compliance with applicable laws, regulations and guidelines are as follows:

•

Struktur Organisasi Kumpulan telah membentuk sebuah struktur organisasi yang tersusun dengan had-had tanggungjawab dan akauntabiliti yang jelas serta pengagihan kuasa yang bertakrif kepada Jawatankuasa-jawatankuasa Lembaga Pengarah dan Pengurusan.

•

Had Kuasa Had kuasa yang ditakrif telah diluluskan oleh Lembaga Pengarah dan telah dilaksanakan dalam bidang Pengunderaitan, kelulusan Tuntutan, Pelaburan dan proses perniagaan yang lain.

•

•

•

Prosedur Operasi Piawai Prosedur Operasi Piawai yang mengawal proses-proses perniagaan utama seperti kewangan, sumber manusia, tuntutan, pelaburan telah diadakan dalam organisasi. Rangka Kerja Pembangunan Produk Baru Rangka Kerja Pembangunan produk baru telah ditubuhkan pada bulan April 2010 untuk memastikan bahawa minat semua pihak yang berkepentingan dilindungi apabila produk baru diperkenalkan. Sepanjang tahun ini, 4 produk baru (Pelan FirstLife, SKHPPA, Takaful myGenLife dan Takaful mySME) telah dilancarkan oleh Syarikat dalam pematuhan ketat terhadap Rangka Kerja Pembangunan produk baru. Fungsi Pematuhan Syarikat mempunyai Piagam dan Rangka Kerja Pematuhan yang telah ditubuhkan yang menggariskan pematuhan urus tadbir dan metodologi. Semua kehendak pematuhan, matriks, prosedur operasi piawai dan garis panduan telah dimuatkan dalam Portal Korporat - Bahagian Pematuhan.

•

Organisational Structure The Group has established an organisational structure with lines of responsibility and accountability with a defined delegation of authority of Committees of the Board and Management.

•

Limit of Authorities A defined limit of authorities has been approved by the Board and implemented in the areas of Underwriting, Claims approval, Investments and other business processes.

•

Standard Operating Procedures The Standard Operating Procedures that govern the key business processes such as finance, human resources, claims, investments are in place within the organisation.

•

New Product Development Framework A New Product Development Framework has been established in April 2010 to ensure that the interests of all stakeholders are protected when new products are introduced. During the year, 4 new products (FirstLife Plan, SKHPPA, Takaful myGenLife and Takaful mySME) were launched by the Company in strict adherence to the New Product Development Framework.

•

Compliance Function The Company has an established Compliance Charter and Framework setting out the compliance governance and methodology. All compliances requirements, matrixes, SOPs and guidelines are posted in the Corporate Portal – Compliance Division.

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•

•

Polisi Pemberitahuan Maklumat dan Polisi Penipuan & Integriti Lembaga Pengarah juga telah meluluskan Polisi Pemberitahuan Maklumat sebagai respons kepada Akta Perlindungan Pemberi Maklumat, 2010 serta Polisi Penipuan & Integriti pada Ogos 2011 yang mana penting dalam menggalakkan kelakuan beretika dalam Kumpulan. Rangka Kerja Tadbir Urus Syariah Rangka Kerja Tadbir Urus Syariah telah diluluskan oleh Lembaga Badan Penasihat Syariah (“BPS”) pada Julai 2011. Rangka kerja ini bertujuan untuk memenuhi objektif berikut:

•

Whistle Blowing Policy and Fraud & Integrity Policy The Board has also approved the Whistle Blowing Policy in response to the Whistleblower Protection Act, 2010 as well as Fraud & Intergrity Policy in August 2011 which is essential in promoting ethical conduct within the Group.

•

Shariah Governance Framework The Shariah Governance Framework was approved by the Shariah Advisory Board (“SAB”) in July 2011. The framework is designed to meet the following objectives:

i.

ii. To provide a comprehensive guidance to the Board, SAB and Management in discharging its duties in matters relating to Shariah.

iii. To outline the functions relating to Shariah review, Shariah audit, internal Shariah research and Shariah risk management processes.

iv. To establish robust Shariah principle and understanding among stakeholders of Takaful Malaysia, include but not limited to employees and customers of Takaful Malaysia.

Untuk menetapkan struktur tadbir urus pentadbiran Syariah Takaful Malaysia, proses-proses dan aturan untuk memastikan bahawa semua operasi dan aktiviti perniagaan adalah selaras dengan Syariah.

To set out Takaful Malaysia’s Shariah governance structures, processes and arrangements to ensure that all its operations and business activities are in accordance with Shariah.

i.

ii. Untuk menyediakan satu panduan yang komprehensif kepada Lembaga, BPS dan Pengurusan dalam menjalankan tugasnya dalam perkara-perkara yang berkaitan dengan Syariah.

iii. Untuk menggariskan fungsi yang berkaitan dengan Syariah untuk kajian, di audit, penyelidikan dalaman dan proses pengurusan risiko Syariah.

iv. Untuk mewujudkan prinsip Syariah yang kukuh dan persefahaman antara pemegang kepentingan Takaful Malaysia, termasuk tetapi tidak terhad kepada pekerjapekerja dan pelanggan-pelanggan Takaful Malaysia.

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Rangka Kerja Pengurusan Aset dan Liabiliti Rangka kerja telah diluluskan oleh Lembaga Pengarah pada bulan November 2011 untuk menyediakan struktur asas pengurusan aset dan liabiliti dan seterusnya mempertingkatkan lagi mekanisma kawalan yang sedia ada yang mendasari aktiviti perniagaan.

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Assets Liabilities Management Framework The framework was approved by the Board in November 2011 to provide the basic structure of the assets and liabilities management and to further enhance the existing control mechanism underlying the business activities.

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Pelan Perniagaan / Pemasaran dan Proses Belanjawan Pelan perniagaan / pemasaran serta belanjawan tahunan Kumpulan dibentangkan kepada Lembaga Pengarah untuk kelulusan.

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Business / Marketing Plan and Budget Process The Group’s annual business / marketing plan and budget are submitted to the Board for approval.




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Laporan Kewangan Laporan akaun/pengurusan dibentangkan kepada Lembaga Pengarah untuk dikaji dan dibincangkan. Penyebaran laporan suku tahunan kepada orang awam dilakukan selepas ia dikaji oleh Jawatankuasa Audit dan diluluskan oleh Lembaga Pengarah. Usaha berterusan turut dijalankan untuk menangani isu-isu kawalan kewangan atau risikorisiko termasuk pengukuhan terhadap proses penutupan kewangan dan pelarasan.

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Financial Reporting Management accounts/reports are tabled to the Board for review and discussion. The public release of quarterly reports is made after reviewed by the Audit Committee and approved by the Board. On-going efforts are in place to address financial control issues or risks, which include strengthening the financial closing and reconciliation process.

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Sistem Teknologi Maklumat

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Information Technology System

Jawatankuasa Peneraju IT Jawatankuasa Peneraju IT telah ditubuhkan untuk mengawasi pembangunan IT yang menyediakan pihak pengurusan pengawalan ke atas fungsi IT di dalam Syarikat. Jawatankuasa Peneraju IT dipengerusikan oleh Pengarah Urusan Kumpulan. Jawatankuasa ini bertanggungjawab untuk meluluskan perbelanjaan berkaitan IT yang besar mengikut had yang telah ditetapkan dan memantau kemajuan projek yang telah diluluskan, merumuskan polisi dan pelan strategik IT.

IT Steering Committee An IT Steering Committee has been established to oversee the development of Information Technology (IT) that provides management an oversight of the IT function within the Company. IT Steering Committee is chaired by the Group Managing Director. The committee is responsible for authorising major IT expenditures within the approved limits, monitoring approved IT projects, formulating IT policies and IT strategic plans.

Rangka Kerja Pengurusan Data Seperti yang ditentukan oleh Garis Panduan BNM, Rangka Kerja Pengurusan Data telah ditubuhkan pada November 2009. Rangka Kerja ini merangkumi proses-proses serta kawalan-kawalan yang berkaitan dengan sekuriti dan integriti data.

Data Governance Framework As prescribed by BNM guidelines, the Data Governance Framework was established in November 2009. The framework covers processes and related controls over data security and integrity.

Jawatankuasa Peneraju Projek IT Jawatankuasa Peneraju Projek IT dipengerusikan oleh Pengarah Urusan Kumpulan. Jawatankuasa yang terdiri dari wakil-wakil daripada IT dan pengguna peniagaan, mengawasi prestasi dan pembangunan projek IT yang berkaitan dengan perniagaan sepanjang tempoh kewangan.

IT Project Steering Committee IT Project Steering Committee is chaired by the Group Managing Director. The Committee consists of representatives from IT and business users, oversees the progress and development of business related IT project during the financial year.

Conclusion Kesimpulan Walaupun terdapat kelemahan kawalan yang dikenal pasti dalam proses-proses perniagaan tertentu dalam Kumpulan, namun tiada sebarang kegagalan kawalan atau kelemahan ketara yang menyebabkan kerugian besar yang memerlukan pendedahan dalam laporan tahunan Kumpulan bagi tempoh kewangan yang dikaji. Penyata ini disediakan selaras dengan resolusi Lembaga Pengarah bertarikh 20 Mac 2012.

Although control lapses were identified for certain business processes within the Group, there were no significant control failures or weaknesses that has resulted in material loss that requires disclosure in the Group’s annual report for the financial year under review. This statement is made in accordance with the Board of Directors resolution dated 20 March 2012.

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Kajian Penyata oleh Juruaudit Luar

Review of the Statement by External Auditors

Menurut kehendak perenggan 15.23 Syarat-syarat Penyenaraian Pasaran Utama Bursa Malaysia, juruaudit luar telah mengkaji penyata ini untuk dimasukkan ke dalam Laporan Tahunan Kumpulan untuk tahun berakhir 31 Disember 2011 dan melaporkan kepada Lembaga Pengarah yang tiada sebarang perkara yang sampai ke pengetahuan mereka yang menyebabkan mereka percaya bahawa penyata ini adalah tidak selari dengan pemahaman mereka bahawa proses yang dipakai oleh Lembaga Pengarah dalam mengkaji kecukupan dan ketelusan sistem kawalan-kawalan dalaman.

Pursuant to paragraph 15.23 of the Listing Requirement of Bursa Malaysia, the external auditor has reviewed this statement for inclusion in the Annual Report of the Group for the year ended 31 December 2011 and reported to the Board that nothing has come to their attention that causes them to believe that the statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy and integrity of the system of internal controls.

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Penyata Pengerusi

Chairman’s Statement

Y. Bhg. Dato’ Paduka Ismee Ismail

Dengan Nama Allah, yang Maha Pengasih, lagi Maha Penyayang. Assalamualaikum Warahmatullahi Wabarakatuh.

In the Name of Allah, the Most Compassionate, the Most Merciful. Assalamualaikum Warahmatullahi Wabarakatuh.

Saya dengan sukacitanya membentangkan Laporan Tahunan dan Penyata Kewangan yang telah diaudit bagi tahun kewangan yang berakhir pada 31 Disember 2011.

I am pleased to present the Annual Report and Audited Financial Statements for the financial year ended 31 December 2011.


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Tahun Dengan Pertumbuhan Kukuh

A Year Of Strong Growth

Para Pemegang Saham yang dihormati sekalian, Tahun 2011 mungkin boleh diingati sebagai tahun yang mempunyai banyak perkembangan yang menarik dan tidak dijangka. Dua belas bulan yang lalu merupakan satu tempoh yang baik untuk syarikat-syarikat Insurans Konvensional dan Takaful ketika industri ini bergerak untuk menyesuaikan diri dengan peristiwa-peristiwa penting yang telah berlaku.

Dear Shareholders, 2011 could perhaps be best remembered as being a year of many interesting and unexpected developments. The last twelve months have been truly exciting for both Conventional Insurance and Takaful companies as the industry looked to adapt to the many impactful events that occurred.

Walau bagaimanapun, Takaful Malaysia dan industri ini secara umumnya telah bertindak balas secara positif terhadap perkembangan-perkembangan ini.

However, Takaful Malaysia and the industry in general responded positively to these developments.

Industri Insurans dan Takaful berkembang kukuh meskipun wujudnya krisis Eurozone, kebangkitan di negara-negara Arab dan perkembangan global yang lain. Setelah mencapai USD7 bilion pada 2009, sumbangan Takaful kasar global telah mencecah hampir USD12 bilion pada 2011. Penembusan Insurans dan Takaful juga berkembang dengan teguh, khususnya dalam segmen Takaful di mana tahap penembusan masih rendah. Begitu juga, sektor Insurans dan Takaful di Malaysia juga mengalami pertumbuhan yang kukuh. Jumlah bersih premium dan sumbangan untuk syarikat insurans dan pengendali Takaful di negara ini meningkat sebanyak 8.2% pada tahun lepas. Ini telah didorong oleh pertumbuhan segmen insurans hayat biasa bagi industri Insurans Hayat dan Takaful Keluarga dan permintaan yang meluas terhadap sektor Insurans Am. Dalam tempoh sembilan bulan pertama 2011, jualan premium biasa telah meningkat sebanyak 13% berbanding tempoh sebelumnya pada tahun terdahulu. Sumbangan keseluruhan daripada sektor Insurans dan Takaful pada 2011 juga telah meningkat dengan kadar penembusan masing-masing di sekitar 43% dan 10%. Meskipun pasaran domestik telah berkembang, terdapat persaingan yang lebih sengit apabila ramai pengendali Takaful yang baru mula melancarkan produk-produk berkaitan pelaburan mereka pada tahun 2011. Ini menjurus kepada persaingan lebih hebat dan meluas apabila peserta-peserta industri insurans terpaksa bersaing dengan syarikat-syarikat baru ini serta syarikat-syarikat Insurans Konvensional dan Takaful yang sedia ada. Persaingan bukan hanya terhad kepada penguasaan pasaran, malah juga dalam permintaan pelanggan, penempatan jenama, ruangan media dan juga yang paling penting, modal insan.

The Insurance and Takaful industry grew strongly despite the Eurozone crisis, the Arab Spring and other global developments. Having reached USD7 billion in 2009, global gross Takaful contributions were close to USD12 billion in 2011. Insurance and Takaful penetration also grew strongly, particularly in the latter segment where penetration is still low. Similarly, the Insurance and Takaful sectors in Malaysia also experienced strong growth. Total net premiums and contributions for insurers and Takaful operators in the country grew by 8.2% last year. This was driven by growth in the ordinary life segments of the Life Insurance and Family Takaful industry and a broad-based demand in the General Insurance sector. In the first nine months of 2011, regular premium sales were up by 13% compared to the preceding period of the previous year. Total contributions from the Insurance and Takaful sectors in 2011 were also up with a penetration rate of around 43% and 10% respectively. While the domestic market had expanded, there was stiffer competition as many of the new Takaful operators began launching their investment-linked products in 2011. This led to greater competition across the board as industry players had to contend with these new entrants as well as existing Conventional Insurance and Takaful providers. The competition was not just limited to market share but also for customer mindshare, brand positioning, media space and also the most crucial, human capital.

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Sungguhpun terdapat cabaran-cabaran pada 2011, saya dengan sukacitanya ingin melaporkan bahawa Kumpulan telah mencatatkan satu lagi tahun dengan pertumbuhan yang membanggakan. Takaful Malaysia mencatatkan pertumbuhan sebanyak 55% yang belum pernah dicatatkan sebelum ini bagi keuntungan sebelum cukai dan zakat dengan sokongan pendapatan yang lebih tinggi. Pelaburan daripada portfolioportfolio sukuk dan ekuiti juga telah menyumbang hasil yang paling tinggi dalam sejarah Syarikat. Banyak sorotan penting yang telah dicapai dalam tempoh 12 bulan lalu. Kami telah mencapai kemajuan ketara dalam menjana kecekapan operasi untuk mempertingkatkan tahap perkhidmatan pelanggan. Kami berjaya memperluaskan saluran pengedaran kami dan melancarkan produk-produk baru ke dalam pasaran. Kami juga mewujudkan kesedaran dan daya tarikan lebih tinggi kepada jenama Takaful Malaysia. Kejayaan-kejayaan ini mendorong kami untuk bersaing dengan lebih yakin dan agresif, terhadap syarikat-syarikat insurans Konvensional dan pengendali-pengendali Takaful, termasuk syarikat-syarikat multinasional. Ini terbukti apabila beberapa kali pada 2011, kami berjaya mendapatkan akaun-akaun yang sebelumnya diinsuranskan oleh syarikat-syarikat insurans multinasional yang lebih besar, terutamanya dalam Perniagaan Keluarga Kumpulan . Hasil daripada kemenangan ini serta yang lain-lain menyumbang kepada prestasi kewangan Kumpulan dan pertumbuhan dalam bahagian pasaran yang lebih teguh. Sehingga akhir 2011, Takaful Malaysia merupakan penyedia Takaful kedua terbesar daripada segi bahagian pasaran daripada sejumlah 11 buah syarikat. Penguasaan pasaran Kumpulan untuk perniagaan Takaful Am dan Keluarga masing-masing berada pada 26% dan 18% pada tahun 2011.

Despite these challenges in 2011, I am pleased to report that the Group recorded another year of resounding growth. Takaful Malaysia registered an unprecedented 55% growth in profits before tax and zakat on the back of higher revenue. Our investments from our sukuk and equity portfolios also delivered their highest yields in the Company’s history. Many other notable highlights were also achieved during the last 12 months. We made significant strides in harnessing operational efficiency to improve customer service levels. We successfully expanded our distribution channels and launched new products into the market. We also created greater awareness and appeal for the Takaful Malaysia brand. These successes spurred us on to compete with greater confidence and aggressiveness, against both Conventional insurers and Takaful operators, including multi-national players. This was evident when on several occasions in 2011; we successfully managed to secure accounts that were previously insured by bigger multi-national insurance players, particularly in the Group Family Business. The result of these wins as well as others contributed to the Group’s stronger financial performance and growth in market share. As of end 2011, Takaful Malaysia is the second largest Takaful provider in terms of market share from a total of 11 companies. The Group’s market share for General and Family Takaful business stood at 26% and 18% respectively in 2011.


Penyata Pengerusi


Tinjauan Kewangan

Financial Overview

Prestasi Kumpulan Dalam tahun tinjauan, Kumpulan mencatatkan satu lagi tahun pertumbuhan kukuh dengan keuntungan melebihi paras RM100 juta buat kali pertama semenjak penubuhannya pada 1984. Dalam tempoh kewangan berakhir 31 Disember 2011, pendapatan kendalian Kumpulan meningkat sebanyak 17% kepada RM1.35 bilion, sementara keuntungan sebelum cukai dan zakat (PBTZ) adalah RM101.4 juta berbanding RM65.3 juta bagi tempoh 12 bulan ditahunkan berakhir Disember 2010, pertumbuhan sebanyak 55%. Bagi tahun kewangan untuk tempoh berakhir Disember 2010 adalah 18 bulan. Keuntungan selepas cukai dan zakat (PATZ) meningkat sebanyak 98.4% kepada RM76.4 juta dari tempoh berakhir Disember 2010. Sumber utama peningkatan ini adalah melalui strategi pelaburan dan pengunderaitan yang lebih baik selain daripada pengukuhan pertumbuhan perniagaan.

Group Performance For the year under review, the Group recorded another year of strong growth with profits exceeding the RM100 million mark for the first time since its establishment in 1984. During the financial period ending 31 December 2011, the Group’s operating revenue increased by 17% to RM1.35 billion, while profit before taxation and zakat (PBTZ) was RM101.4 million compared to RM65.3 million for the annualized 12 months period ending December 2010, a growth of 55%. The financial year period for period ending December 2010 was 18 months. Profit after tax and zakat (PATZ) increased by 98.4% to RM76.4 million from period ending December 2010. The large improvement in profit is largely attributable to the improved investment and underwriting results along with strong business growth.

Saiz aset keseluruhan telah meningkat kira-kira 11% kepada RM5.9 bilion pada 2011 berbanding RM5.3 bilion tahun lalu. Keuntungan keseluruhan daripada aktiviti-aktiviti pelaburan yang terdiri daripada keuntungan terealisasi, perubahan nilai saksama dan selepas ditolak kerugian susut nilai meningkat sebanyak 21% kepada RM320.1 juta daripada RM265.2 juta pada 2010.

Total assets size has risen by about 11% to RM5.9 billion in 2011 as compared to RM5.3 billion a year ago. Total profit from investment activities which comprised realised gains, fair value changes and net of impairment losses increased by 21% to RM320.1 million from RM265.2 million in 2010.

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Penyata Pengerusi


Prestasi Syarikat Syarikat telah mencapai rekod pertumbuhan sebanyak 52% dalam PBTZ berjumlah RM94 juta berbanding RM62 juta ditahunkan untuk tempoh 12 bulan berakhir Disember 2010. Keuntungan selepas zakat dan cukai (PATZ) telah meningkat kepada 116% kepada RM71.7 juta bagi tahun kewangan berakhir Disember 2010.

Company Performance The Company achieved a record of 52% growth in PBTZ amounting to RM94 million as compared to RM62 million for the annualised 12 months period ending December 2010. Profit after tax and zakat (PATZ) increased by 116% to RM71.7 million from period ending December 2010.

Kendalian operasi merekodkan peningkatan sebanyak 19% kepada RM1.14 bilion berbanding RM0.96 bilion ditahunkan untuk tempoh 12 bulan berakhir Disember 2010. Jumlah sumbangan kasar adalah RM951 juta – meningkat sebanyak 21% daripada tempoh 12 bulan ditahunkan berakhir Disember 2010 yang berjumlah RM786 juta. Sumbangan am menunjukkan pertumbuhan 15% kepada RM383 juta daripada RM333 juta ditahunkan untuk tempoh 12 bulan berakhir Disember 2010. Takaful Keluarga berkembang sebanyak 25% ditahunkan untuk tempoh 12 bulan berakhir Disember 2010 sebanyak RM453 juta kepada RM568 juta.

Operating revenue recorded an increase of 19% to RM1.14 billion as compared to RM0.96 billion for the annualised 12 months period ending December 2010. Total gross contribution was RM951 million – 21% increased from annualised 12 months ending December 2010’s of RM786 million. General contribution saw growth of 15% to RM383 million from RM333 million for the annualised 12 months ending December 2010. Family Takaful grew by 25% from annualised 12 months ending December 2010 of RM453 million to RM568 million.

PBTZ yang lebih tinggi itu adalah disebabkan oleh pendapatan yang bertambah baik daripada aktiviti-aktiviti pelaburan yang terdiri daripada keuntungan terealisasi, perubahan nilai saksama dan selepas ditolak kerugian susut nilai yang merekodkan kenaikan sebanyak 27% kepada RM299.7 juta daripada RM235.6 juta ditahunkan untuk tempoh 12 bulan berakhir Disember 2010.

The higher PBTZ was attributed to the improved income from investment activities which comprised realised gains, fair value changes and net of impairment losses that recorded a 27% increase to RM299.7 million from RM235.6 million for the annualised 12 months ending December 2010.

Pada 2011, Takaful Malaysia telah dinobatkan sebagai syarikat dengan pertumbuhan majmuk ketiga tertinggi dalam keuntungan sebelum cukai sepanjang 3 tahun oleh The Edge Malaysia, akhbar mingguan perniagaan dan pelaburan negara yang telah memenangi pelbagai anugerah. Penjenamaan Semula Agresif Untuk Memenangi Pasaran Salah satu daripada faktor utama di sebalik prestasi kukuh adalah kempen penjenamaan semula kami. Dilancarkan pada 2009, kempen ini berkesan dalam dua cara: pertamanya menempatkan semula kami dengan imej yang lebih dinamik dan bertenaga di pasaran, disamping mewujudkan kesedaran. Keduanya, untuk meningkatkan daya tarikan di kalangan masyarakat awam kepada produk dan perkhidmatan kami. Jika sebelum ini, pasaran melihat kami sebagai berbentuk konservatif, kami secara beransur-ansur mengubah persepsi ini dan mewujudkan hubungan dengan pelanggan daripada semua lapisan masyarakat. Dengan itu, pada tahun 2011, kami meneruskan usaha penjenamaan semula kami menerusi penggunaan strategik pengiklanan media cetak, elektronik dan luaran. Pelaburan ini telah menerima pulangan baik dengan peningkatan kesedaran

In 2011, Takaful Malaysia was ranked as the 3rd company with the highest compound growth in profit before tax over 3 years by The Edge Malaysia, the country’s award-winning business and investment weekly newspaper. Aggressive Rebranding To Win The Marketplace One of the key factors behind our strong performance was our rebranding campaign. Launched in 2009, the campaign has been effective in two ways: firstly repositioning ourselves with a dynamic and vibrant image in the marketplace; whilst creating awareness. Secondly, to increase appeal amongst the general public for our products and services. If previously, the market saw us in a conservative light, we are progressively altering these perceptions and creating connections with customers from all walks of life. Hence, in 2011, we continued with our rebranding efforts through the strategic use of print, electronic and outdoor advertising. The investment has been well repaid with the growing awareness and appeal for our products and services. Together with our 15% No Claim Rebate, which has been a


Penyata Pengerusi


dan daya tarikan kepada produk dan perkhidmatan kami. Dengan penawaran 15% Rebat Tanpa Tuntutan, kempen penjenamaan semula ini telah memberi sumbangan yang besar kepada prestasi perniagaan kami. Takaful Malaysia juga telah memenangi Anugerah BrandLaureate 2010-2011 dalam Kategori Penjenamaan Korporat bagi Jenama Terbaik dalam Perkhidmatan Kewangan - Insurans Takaful untuk dua tahun berturut-turut.

winning value proposition for us, the rebranding campaign has contributed strongly to our better business performance. Takaful Malaysia had also clinched the coveted BrandLaureate Award 2010-2011 in the Corporate Branding Category for Best Brands in Financial Services - Insurance Takaful for the second year running. Strong Product Innovation

Inovasi Produk Yang Kukuh Inovasi dan pembangunan produk juga merupakan ciri penting bagi kejayaan kami pada tahun yang ditinjau. Meskipun hanya baru diperkenalkan hampir setahun, Takaful myGenLife telah muncul sebagai pilihan utama dalam keduadua pasaran Insurans dan Takaful. Produk berkaitan pelaburan disertai 10 tambahan pilihan yang menawarkan faedah perlindungan menarik. Ia juga menyediakan pilihan kepada pelanggan untuk melabur dalam lima dana pelaburan yang berlandaskan Syariah, yang paling luas boleh diperolehi dan ditawarkan berbanding mana-mana pengendali Takaful. Dengan ‘menggabungkan’ kedua-dua unsur berasaskan perlindungan dan pelaburan yang memenuhi keperluan dan kemampuan peserta, Takaful myGenLife menawarkan kefleksibelan dan kemampuan, yang menjadikannya popular di kalangan pelanggan runcit.

Product innovation and development was also a key feature during our successful year under review. Despite being barely a year-old, Takaful myGenLife has emerged as a leading choice in both, the Insurance and Takaful market. The investment-linked product comes with 10 optional supplementary riders which offer attractive coverage benefits. It also provides options for customers to invest in our five Shariahcompliant investment funds, which is the widest available range of Shariah-compliant funds offered by any Takaful operator. By ‘marrying’ both protection and investment based elements that cater to the participants’ needs and affordability, Takaful myGenLife offered flexibility and affordability, which made it popular among retail customers.

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Pada 5 April, 2011, kami telah melancarkan pelan Takaful mySME yang menyasarkan lima sektor SME di Malaysia yang terdiri daripada sektor-sektor utama seperti perusahaan ringan, makanan & minuman, runcit, pejabat dan perkhidmatan. Produk yang menyediakan perlindungan komprehensif disamping memudahkan penghasilan perniagaan dan kecairan aliran tunai. Ia merupakan salah satu daripada rancangan paling komprehensif dan menarik bagi perusahaan kecil dan sederhana. Sebagai sebahagian daripada acara pelancaran, kami turut menandatangani Memorandum Persefahaman (MoU) dengan SME Corporation untuk bersama-sama mendidik dan membentuk kesedaran di kalangan semua usahawan SME di seluruh negara melalui enam jerayawara, yang membincangkan kepentingan pengurusan risiko yang kukuh. Kami juga memanfaatkan skim pengesahan pekerja asing oleh pihak kerajaan, di mana pekerja asing perlu mendapatkan perlindungan perubatan dan kemasukan hospital sebagai prasyarat untuk diberikan status sah oleh kerajaan. Pengunderaitan Berhemat & Rekod Hasil Tertinggi Meskipun kami lebih agresif pada 2011, kami tetap mengamalkan sikap berwaspada terhadap aktiviti-aktiviti pelaburan dan pengunderaitan. Kami lebih berhati-hati dalam menilai dan menerima hanya kontrak pengunderaitan yang lebih menguntungkan sementara mengelak pengunderaitan yang cenderung kepada risiko yang lebih besar. Pendekatan ini membolehkan kami untuk memperbaiki margin pengunderaitan kami, membawa kepada pertumbuhan hasil dalam tahun kewangan itu.

On April 5, 2011, we launched our Takaful mySME plans targeted at the top five SME sectors in Malaysia consisting of the light manufacturing, food & beverages, retail, offices and services sectors. The product is geared towards providing comprehensive protection while also facilitating business productivity and cash flow liquidity. It is one of the most comprehensive and attractive plans for small and medium enterprises. As part of the launch event, we also signed a Memorandum of Understanding (MoU) with SME Corporation to jointly educate and create awareness among all SME entrepreneurs across the country via six road shows, on the importance of solid risk management. We also leveraged on the government’s foreign workers legalisation scheme, whereby foreign workers must secure medical and hospitalisation coverage as a prerequisite to be granted legal status by the government. Prudent Underwriting & Record High Yield While we were more aggressive in 2011; we exercised prudence with regard to investment and underwriting activities. We were cautious in assessing and accepting only the more profitable underwriting contracts while avoiding those prone to greater risks. This approach enabled us to improve on our underwriting margin, leading to income growth during the financial year.


Penyata Pengerusi


Pelaburan kami juga menunjukkan penambahbaikan. Walaupun dengan pembetulan pasaran pada suku ke-3 2011, kami mencapai hasil yang tinggi dalam sejarah daripada portfolio ekuiti dan sukuk. Adalah jelas bahawa keputusan kami untuk mengambil keuntungan daripada portfolio ekuiti sebelum kegawatan pasaran; termasuk juga memperolehi pulangan yang lebih tinggi daripada portfolio sukuk menerusi strategi pengurusan aktif, telah mendatangkan hasil.

Our investments also showed improvement. Despite a market correction in the 3rd quarter of 2011, we achieved high yield from our equity and sukuk portfolios. It is apparent that our decision to lock in profits from our equity portfolio prior to the market downturn; as well as achieving a higher return from our sukuk portfolio through active management strategies has paid off.

Selain itu, campuran portfolio aset yang seimbang dengan ufuk pelaburan jangka panjang telah membolehkan kami untuk meneroka prospek menarik sementara mengambil kesempatan daripada sifat kitaran semulajadi pelaburan.

In addition, our well-balanced asset portfolio mix with a long term investment horizon enabled us to explore attractive prospects while capitalising on the cyclical nature of investments.

Portfolio hartanah kami juga menunjukkan peningkatan nilai dalam tahun tinjauan. Kami telah mengambil pelbagai langkah untuk meningkatkan hasil seperti melupuskan hartanah yang tidak berprestasi dan menaik taraf sistem mekanikal dan elektrikal Dataran Kewangan Darul Takaful. Penambahbaikan Operasi

Our property portfolio also saw an appreciation in value during the year under review. We undertook various measures to enhance yield such as disposing of non-performing properties and upgrading the mechanical and electrical systems of Dataran Kewangan Darul Takaful. Operational Improvements

Pada Jun 2011, kami telah melaksanakan Penyelesaian Pengurusan Dokumen (DMS) dan Sistem Pengurusan Aliran Kerja (eWMS) elektronik untuk memudahkan persekitaran kerja tanpa kertas dan untuk menambahbaikkan keberkesanan operasi dan produktiviti di seluruh organisasi.

In June 2011, we embarked on the implementation of our electronic Document Management Solution (DMS) and the Workflow Management System (eWMS) to facilitate a paperless working environment and to improve operational efficiency and productivity throughout the organisation.

Sistem ini telah dengan ketara mempertingkatkan proses pengunderaitan perniagaan baru, menjadikannya lebih cepat dan ringkas. Kami juga telah melancarkan portal-portal web Agensi Runcit dan Korporat serta Bankatakaful yang akan memberi kuasa kepada pasukan jualan untuk memberi perkhidmatan yang lebih baik kepada pelanggan.

The system has significantly improved the process of underwriting new business, making it faster and simpler. We also launched our Retail and Corporate Agency as well as Bancatakaful web portals, that will empower our sales force to better serve customers.

Denagan penambahbaikan sistem teknologi maklumat dalam tahun yang ditinjau, membolehkan Kumpulan mempertingkatkan keupayaan operasi, perkhidmatan pelanggan dan bertindak balas lebih cepat dalam pasaran yang kompetitif. Bilangan kes langsung serta pertanyaan melalui telefon dan yang bertulis juga telah berkurangan.

These and many other IT based improvements during the year under review have enabled the Group to improve operational capability, enhance customer service and respond faster in a competitive marketplace. The number of walk-ins as well as phone and written enquiries has also been reduced.

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Pekerja Kami, Aset Kami

Our People, Our Asset

Tidak mungkin bagi kami untuk menyatakan sorotan-sorotan tahun ini tanpa menonjolkan kakitangan kami. Kumpulan menyedari sepenuhnya kepentingan pekerja dalam mengekalkan tahap perkhidmatan dan kelebihan daya saing. Oleh itu, dalam tahun tinjauan, kami telah memperkenalkan dasar ganjaran dan struktur gaji baru yang sejajar dengan amalan pasaran. Kami juga memberi tumpuan kepada meningkatkan dasar dan proses kami yang berkaitan kepada pengambilan, pemberian ganjaran, pengekalan dan pembangunan tenaga kerja kami.

It is not possible for us to talk about the highlights of the year without highlighting our staff. The Group is well aware of the importance of people in retaining its service levels and competitive edge. As such, during the year under review, we introduced a revised remuneration policy and salary structure aligned to market practices. We also focused on enhancing our policies and processes in relation to recruiting, rewarding, retaining and developing our workforce.

Jabatan Sumber Manusia juga memulakan Sistem Maklumat Tenaga Manusia (HRIS) yang dipertingkatkan untuk mengintegrasikan proses-proses semasa disamping mengurangkan tugas yang tidak bernilai, menuju ke arah penghasilan perkhidmatan lebih berkesan dan menambahbaikkan kemudahan kepada kakitangan menerusi fungsi layan diri. Kami akan terus menanda aras pakej-pakej ganjaran kami bagi memastikan pakej tersebut kekal bersaing dengan piawaian pasaran semasa.

Human Resources also embarked on the enhanced Human Resource Information System (HRIS) to integrate current related processes whilst reducing non-valued tasks, moving towards a more efficient service delivery and improving convenience for staff through self-service functions. Going forward, we shall continue to benchmark our remuneration packages to ensure they remain competitive to current market standards.

Kajian Mengenai Subsidiari PT Syarikat Takaful Indonesia (STI) Sebagai sebahagian daripada Proses Transformasi Pengurusan kami, dua orang Ketua Pegawai Eksekutif (CEO) yang baru telah dilantik untuk mengemudi subsidiari-subsidiari kami di Indonesia, iaitu PT Asuransi Takaful Umum (ATU) dan PT Asuransi Takaful Keluarga (ATK). Dengan perubahan pengurusan yang dilakukan pada tahun yang ditinjau, kami percaya subsidiarisubsidiari ini akan mampu bersaing dengan lebih baik di ruang pasaran Indonesia. Keputusan oleh kerajaan Indonesia baru-baru ini untuk menolak tetingkap Takaful dan membenarkan syarikat-syarikat Takaful telah memberi harapan kepada operasi kami di Indonesia untuk bergerak maju seterusnya. Pada 2012, sasaran kami adalah untuk mengembangkan perniagaan kami di Indonesia melalui bank dan tenaga agensi runcit. Setelah bertapak dengan kukuh dipasaran untuk 15 tahun kami berharap bahawa pengalaman ini akan memberikan kami kelebihan untuk mendapatkan bahagian pasaran yang lebih baik bagi tahun kewangan berikutnya.

Review Of Subsidiaries PT Syarikat Takaful Indonesia (STI) As part of our Management Transformation Process, we appointed two new CEOs to steer our Indonesian subsidiaries, i.e. PT Asuransi Takaful Umum (ATU) and PT Asuransi Takaful Keluarga (ATK). With the management changes put in place during the year under review, we believe the subsidiaries will be able to better compete in the Indonesian market space. The recent decision by the Indonesian government to disallow Takaful windows in favour of Takaful companies is cause for optimism and bodes well for our Indonesian operations going forward. In 2012, our aim is to grow our Indonesia business via the banks and retail agency force. Having established ourselves in the market for the last 15 years, we hope that this experience will give us a head-start in increasing our market share in the next financial year.


Penyata Pengerusi


Asean Retakaful International (L) Ltd (ARIL) Proses peringanan yang kami mulakan pada 2010 berlangsung sebagaimana yang dirancang pada 2011. ARIL telah berhenti daripada mengunderait sebarang perniagaan baru – beroperasi berdasarkan kepada kontrak-kontrak sedia ada dengan sasaran meringankan kontrak-kontrak ini untuk penamatan awal. Usaha ini akan mengambil masa lebih kurang dua tahun. Tanggungjawab Sosial Korporat Sebagai sebuah syarikat berkaitan kerajaan (GLC), Takaful Malaysia komited kepada objektif-objektif Tanggungjawab Sosial Korporat (CSR) yang digariskan dalam Buku Perak. Dalam tahun tinjauan, kami dengan bangganya telah melaksanakan pelbagai inisiatif CSR di bawah program Takaful myJalinan Kasih dan Ilmu kepada individu dan keluarga yang memerlukan, mangsa-mangsa bencana alam, rumah-rumah anak yatim dan mereka yang kurang upaya fizikal dan mental. Kami juga mempercepatkan kelulusan tuntutan untuk pelbagai kes khas dan melakukan sumbangan zakat kepada semua 14 jabatan agama negeri. Tinjauan Pasaran Bagi 2012 Krisis Eurozone yang sedang berlaku akan terus memberi kesan kepada ekonomi global pada tahun 2012. Bank Dunia menganggarkan pertumbuhan ekonomi global pada lebih kurang 1.9% berbanding ramalan awal sebanyak 2.7%.

Asean Retakaful International (L) Ltd (ARIL) The commutation process we commenced in 2010 proceeded as planned in 2011. ARIL has ceased to underwrite any new business – operating based on existing contracts with the aim of commutating these contracts for early termination. This exercise will take approximately two years. Corporate Social Responsibility As a government-linked company (GLC), Takaful Malaysia is committed to the Corporate Social Responsibility (CSR) objectives outlined in the Silver Book. During the year under review, we proudly undertook various CSR initiatives under our Takaful myJalinan Kasih and Ilmu CSR programmes to needy individuals and families, victims of natural disasters, orphanages and the physically and mentally handicapped. We also hastened claims approvals for various special cases and made zakat contributions to all 14 state religious departments. Market Outlook For 2012 The prevailing Eurozone crisis will continue to impact the global economy in 2012. The World Bank estimates that global economic growth will be approximately 1.9% from the initial prediction of 2.7%.

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Meskipun Malaysia tidak terlalu terdedah sebagaimana banyak negara lain, penghindaran risiko boleh memuncak dan membawa kepada pengaliran keluar modal dan kecenderungan yang lebih rendah untuk melabur dalam negara ini. Pengaliran keluar dana akan menjejaskan simpanan, pasaran ekuiti dan pelaburan langsung asing (FDI). Kumpulan akan lebih berwaspada dan bersifat proaktif untuk memberi maklumbalas sewajarnya kepada perkembangan seperti itu dalam melindungi pelaburan dan nilai para pemegang saham kami. Dalam mengurangkan kesan inflasi, kami akan menguruskan secara aktif di antara instrumeninstrumen pelaburan tetap dan fleksibel. Takaful Malaysia adalah komited untuk menghasilkan pertumbuhan yang mapan, memaksimumkan nilai para pemegang saham dan menjana kekayaan. Walau bagaimanapun, tahun kewangan akan datang juga memberikan peluang. Kami menjangkakan industri Insurans dan Takaful berkembang dengan pesat di kedua-dua peringkat antarabangsa dan domestik. Pasaran Takaful di Malaysia sahaja telah berkembang pada kadar 20%-25% setahun. Kadar penembusan masih rendah di sekitar 10%, berbanding dengan Insurans Konvensional yang dilaporkan hampir 43%. Inovasi produk, daya tarikan lebih luas kepada produk-produk Takaful dan industri yang masih baru secara relatif di tengah-tengah pasaran yang belum diterokai akan menyokong pertumbuhan pada tahun 2012.

While Malaysia is not as exposed as many other countries, risk aversion could intensify leading to capital outflow and a lower propensity to invest in the country. An exit of funds will impact deposits, the equity market and foreign direct investments (FDI). The Group will be vigilant and proactive to respond accordingly to such developments in safeguarding our investments and shareholders’ value. In mitigating the effects of inflation, we will actively manage between fixed and flexible instruments. Takaful Malaysia is committed to delivering sustainable growth, maximising shareholders’ value and creating wealth. However, the upcoming financial year also presents opportunities. We foresee the Insurance and Takaful industries growing strongly both on the international and domestic front. Malaysia’s Takaful market alone is growing at 20%-25% annually. The penetration rate is still low at around 10%, compared to Conventional Insurance which is reported to be close to 43%. Product innovation, broader appeal for Takaful products and a relatively young industry amidst an untapped and underserved market will support growth in 2012.


Penyata Pengerusi


Inisiatif kerajaan seperti insentif cukai bagi Pelan Pencen Swasta dan Rangka Tindakan Sektor Kewangan (2011-2020) yang baru dikeluarkan mungkin membuka peluang-peluang baru untuk terus merangsang pertumbuhan seterusnya dalam industri. Insentif cukai yang lebih tinggi untuk produk-produk persaraan juga menjadi petanda baik kepada industri secara keseluruhannya. Dengan peningkatan kemewahan di kalangan rakyat Malaysia serta kesedaran yang kian meningkat terhadap perancangan kewangan dan produk yang berlandaskan Syariah, kami yakin bahawa permintaan untuk produk-produk Takaful akan meningkat. Ini jelas terbukti daripada pertumbuhan pesat industri sepanjang tiga tahun lepas dan ini harus berterusan pada 2012. Walau bagaimanapun, syarikat-syarikat Takaful tidak hanya bersaing sesama sendiri, tetapi juga dengan penyedia Insurans Konvensional termasuk syarikat multinasional yang lebih mantap. Oleh itu, produk dan perkhidmatan Takaful mestilah terus berkeadaan inovatif dan setanding, jika tidak lebih baik berbanding syarikat-syarikat Insurans Konvensional. Dengan pelaksanaan Rangka Kerja Modal Berasaskan Risiko, industri insurans mungkin menyaksikan konsolidasi di antara syarikat-syarikat Takaful yang lebih kecil. Sekiranya perkembangan ini berlaku pada tahun 2012, bilangan syarikat pesaing akan berkurangan tetapi bersaiz lebih besar. Ini mungkin suatu petanda baik kepada kami untuk maju ke hadapan. Industri ini juga kian berubah dari rangka kerja Mudharabah atau pergabungan kepada model berasaskan Wakalah.

Government initiatives such as tax incentives for Private Pension Plans and the newly released Financial Sector Blueprint (20112020) may open up new opportunities to spur further growth in the industry. The higher tax incentives for retirement products also bode well for the industry as a whole. With growing affluence among Malaysians as well as improving awareness on financial planning and Shariah-compliant products, we are confident that demand for Takaful products will rise. This is evident from the rapid industry growth over the last three years and should continue in 2012. However, Takaful companies are not just competing against themselves, but also with Conventional Insurance providers including large, multi-national players who are well established. Hence, Takaful products and services must continue to be innovative and on par, if not better than Conventional Insurance providers. With the implementation of the Risk Based Capital Framework, it is possible that the industry may witness a round of consolidation between smaller Takaful players. If this development takes place in 2012, there will be bigger but fewer players to contend with. This may augur well for us moving forward. The industry is also moving from the Mudharabah or combined framework to a Wakalah based model.

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Memandangkan keadaan pasaran yang dijangka tidak menentu, produk-produk perlindungan seperti perlindungan keluarga dan Takaful perubatan berkemungkinan mendapat jualan kukuh. Kami menjangkakan usaha untuk merekrut ejen dan mereka yang berpotensi sebagai cabaran utama pada 2012 dan kami telah pun mengambil pelbagai langkah untuk menangani isu ini pada masa akan datang. Program Transformasi Ekonomi (ETP) juga berkemungkinan akan memberi kesan positif terhadap perniagaan pada penghujung 2012. Pelbagai Projek Titik Kemasukan (EPP) di bawah ETP akan merangsang ekonomi – menyediakan pekerjaan dan menjana aktiviti perniagaan. Kesan penggandaan atau pertindihan daripada ini adalah penghasilan pendapatan, penjualan dan pembelian hartanah, pengambilan pekerja, pinjaman dan aktiviti-aktiviti lain; yang kebanyakannya akan memerlukan perlindungan insurans. Kerajaan juga telah melahirkan hasratnya untuk meningkatkan Keluaran Dalam Negara Kasar (GDP) bagi insurans hayat daripada yang sedia ada sebanyak 2.8% kepada 4% (75% daripada populasi) menjelang 2020 melalui pelbagai inisiatif berasaskan ETP. Strategi Syarikat Melangkah Ke Hadapan Portfolio produk Takaful Malaysia yang sedia ada berada dalam kedudukan yang baik untuk meneroka banyak peluang di masa hadapan. Imej kami yang semakin meningkat dan penerimaan kepada produk dan perkhidmatan kami termasuk juga tahap perkhidmatan pelanggan yang bertambah baik akan meletakkan kami pada kedudukan baik untuk bersaing dengan berkesan dalam pasaran.

In view of the expected volatile market conditions, protection products such as family protection and medical Takaful are likely to see strong sales. We foresee recruiting agents and talents to remain a key challenge in 2012 and we are already taking various steps to address this going forward. The Economic Transformation Program (ETP) is also likely to have a positive impact on business at the end of 2012. The various Entry Point Projects (EPPs) under the ETP will boost the economy – providing jobs and generating business activity. The multiplier or cascading effect of this is income creation, sale and purchase of properties, hiring of employees, loans and other activities; most of which will require insurance coverage. The government has also expressed its intention of increasing the Gross Domestic Product (GDP) for life insurance from the existing 2.8% to 4% (75% of population) by 2020 via the various ETP based initiatives. Company Strategy Going Forward Takaful Malaysia’s existing products portfolio are well positioned to tap the many opportunities going forward. Our growing image and acceptance for our products and services as well as improving customer service levels will hold us in good stead to compete effectively in the market place.


Penyata Pengerusi


Kami juga akan berusaha untuk meningkatkan saluran pengedaran kami untuk merangsang jualan. Keupayaan untuk mencapai pelanggan di seluruh negara adalah penting dan kami akan terus mempertingkatkan keupayaan dan kapasiti kami dalam bidang ini. Seperti yang digariskan di dalam Laporan Takaful Dunia 2011, kami akan memberi penekanan kepada empat bidang teras berikut dalam tahun kewangan akan datang:

We will also look to enhance our distribution channels to boost sales. The ability to reach customers nationwide is crucial and we will continue to improve our capability and capacity in this area. As outlined under the World Takaful Report 2011, we will look to emphasise these four core areas in the upcoming financial year:

•

Capaian pelanggan – Segmen pasaran dan pelanggan yang kami ingin memberi perkhidmatan.

•

Customer reach – The markets and customer segments we wish to serve.

•

Ketangkasan operasi – Keupayaan untuk menyesuaikan diri dan bertindak balas kepada perubahan dalam peraturan dan keadaan pasaran.

•

Operational agility – The ability to adapt and respond to changes in regulations and market conditions.

•

Kos daya saing – Keupayaan untuk menetapkan harga bersesuaian dengan kos daya saing kita.

•

Cost competitiveness – The ability to set appropriate pricing and the competitiveness of our cost base.

•

Keyakinan pemegang saham – Untuk terus mendapatkan sokongan dan keyakinan daripada para pemegang saham kami sambil menghasilkan pulangan lebih tinggi untuk mereka.

•

Stakeholder confidence – Continuing to earn the support and confidence of our stakeholders while generating higher returns for them.

Akhirnya, matlamat kami adalah untuk mengatasi pasaran dan memantapkan syarikat kami sebagai pilihan utama bukan sahaja di kalangan syarikat-syarikat Takaful tetapi juga di kalangan penyedia insurans. Kami berhasrat untuk dikenali sebagai sebuah Syarikat yang dinamik, berorientasikan pelanggan yang menawarkan tahap perkhidmatan dan produk yang kompetitif dengan jenama dan imej yang kukuh.

Ultimately, our goal is to outpace the market and firmly establish ourselves as the preferred choice not just amongst Takaful companies but among insurance providers as well. We wish to be known as a dynamic, customer oriented Company that offers the best service levels and competitive products with a strong brand and image.

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Penghargaan

Acknowledgement

Bagi pihak Lembaga, saya ingin mengucapkan terima kasih kepada Y.Bhg. Datuk Abdul Hamid Said yang bersara daripada Badan Penasihat Syariah (BPS) pada 1 April 2011. Tempoh perkhidmatan Y.Bhg. Datuk Abdul Hamid adalah sangat dihargai dan kami ingin mengucapkan selamat maju jaya kepada beliau di masa hadapan.

On behalf of the Board, I wish to thank Y. Bhg. Datuk Abdul Hamid Said who retired from the Shariah Advisory Body (SAB) on 1 April 2011. Y. Bhg. Datuk Abdul Hamid’s tenure on the SAB is most appreciated and we wish him well on his future endeavours.

Pada masa yang sama, saya juga ingin mengambil kesempatan ini untuk mengalu-alukan Y.Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz yang telah dilantik ke dalam BPS pada 1 Jun 2011. Pengalaman Y.Bhg. Dato’ Wan Mohamad telah terbukti sangat bernilai dalam tahun dalam kajian. Akhir sekali, dengan setinggi-tinggi penghargaan saya sampaikan tanda terima kasih daripada Lembaga kepada kakitangan kami atas dedikasi dan komitmen mereka, Pasukan Pengurusan kami yang menerajui Syarikat ini ke arah bertumbuhan positif, Jawatankuasa Lembaga yang berkaitan dan BPS untuk profesionalisme mereka, rakan-rakan perniagaan dan pelanggan-pelanggan kami di atas sokongan mereka. Kepada semua pemegang saham kami, terima kasih atas keyakinan dan kepercayaan yang berterusan terhadap kami sepanjang tahun dibawah kajian ini.

Y. Bhg. Dato’ Paduka Ismee Ismail Pengerusi

In the same vein, I would like to also take this opportunity to welcome Y. Bhg. Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz who was appointed to the SAB on 1 June 2011. Y. Bhg. Dato’ Wan Mohamad’s experience has proven to be most valuable during the year under review. Last but not least, it is with much appreciation that I convey the Board’s gratitude to our staff for their dedication and commitment; our Management Team for steering the Company to a year of positive growth, the relevant Board Committees and SAB for their professionalism, our business partners and customers for their support. To all our shareholders, thank you for the continued confidence and belief in us during the year under review.

Y. Bhg. Dato’ Paduka Ismee Ismail Chairman

Financial Statements 078

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Directors’ Report

Statement by Directors

Statutory Declaration

Independent Auditors’ Report

Report of the Shariah Advisory Body

Statements of Financial Position

Statements of Comprehensive Income

Statements of Changes In Equity

Family Takaful Statements of Financial Position

Family Takaful Statements of Comprehensive Income

General Takaful Statements of Financial Position

General Takaful Statements of Comprehensive Income

Statements of Cash Flows

Notes to the Financial Statements

078


Directors’ Report for the Financial year Ended 31 December 2011

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the year ended 31 December 2011. Principal activities The principal activities of the Company consist of managing family and general takaful businesses, whilst the principal activities of the subsidiaries are as stated in Note 5 to the financial statements. There has been no significant change in the nature of these activities during the financial year. Results Group Company RM’000 RM’000 Profit for the year attributable to: Owners of the Company 76,785 71,709 Non-controlling interests (406)

76,379

71,709

Reserves and provisions There were no material transfers to or from reserves and provisions during the year under review. Dividends Since the end of the previous financial period, the Company paid: RM'000 In respect of the financial period ended 31 December 2010 as stated in the directors' report of that period: Final dividend of 7% less tax at 25%, paid on 27 May 2011 8,548 In respect of the financial year ended 31 December 2011: Interim dividend of 5% less tax at 25% and 2% single tier, paid on 2 December 2011 9,362

17,910

The final dividend recommended by the Directors in respect of the financial year ended 31 December 2011 is 10% single tier dividend totalling RM16,281,700. Directors of the Company Directors who served since the date of the last report are: Y. Bhg. Dato' Paduka Ismee Ismail Y. Bhg. Dato' Mohamed Hassan Md. Kamil Puan Rozaida Omar Encik Mahadzir Azizan Y. Bhg. Dato' Sulaiman Mohd Yusof Encik Johan Abdullah Encik Zakaria Ismail In accordance with Article 62 of the Company’s Articles of Association, Puan Rozaida Omar and Y. Bhg. Dato’ Paduka Ismee Ismail will retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.


Directors’ Report for the Financial Year Ended 31 December 2011

Directors’ interests According to the register of directors’ shareholding, none of the directors in office at the end of the financial year held any interest in the shares of the Company or its related corporations during the financial year ended 31 December 2011. Directors’ benefits Since the end of the previous financial period, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements) by reason of a contract made by the Company or a related company with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest. There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other corporate body. Statement on corporate governance and internal controls (a) Board responsibilities The Board of Directors (the Board) is ultimately responsible for the proper stewardship of the Group's and Company’s resources, the achievement of corporate objectives and good corporate citizenship and discharges this responsibility through compliance with the Takaful (Amendment) Act, 1984 and Bank Negara Malaysia's (BNM) Guidelines on Directorship for Takaful Operators (BNM/RH/GL 004-1) and other directives, in addition to adopting other best practices on corporate governance. The Board comprises six non-executive directors and one executive director to enable a balanced and objective consideration of issues, hence facilitating optimal decision making. The executive director adds value to the decision making process by providing a management and operational perspective to issues placed before the Board. (b) Management accountability The Group and the Company have an organisational structure showing all reporting lines as well as clearly documented job descriptions for all management and executive employees. Authority limits, as approved by the Board, are clearly established and made available to all employees. (c) Corporate independence The Group and Company have complied with BNM’s Guidelines on Related Party Transactions for Takaful Operators (BNM/RH/ GL 004-7). Necessary disclosures have been made to the Board and when required, prior Board’s approval has been obtained. All material related party transactions have been disclosed in Note 44 to the financial statements.

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Statement on corporate governance and internal controls (continued) (d) Internal controls and operational risk management The responsibility for establishing an effective risk management and internal control system rests with the Board. The Board has put in place an Enterprise Risk Management (ERM) framework within the Group and the Company to ensure that there is an on-going process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations. The Group and the Company have established a structured risk management process of which the roles and responsibility of Risk Management Committee of the Board (RISCO) focusing on strategic and policies matters and Management Risk Committee (MRC) focusing on tactical and operational aspect are clearly spelt out. Revision to the Corporate Risk rating was undertaken during the year and subsequent updates shall be reviewed on quarterly basis. This revision is necessary to cope with ever changing environment of the business in tandem with the enhanced regulatory requirements. The Business Continuity Management Framework has also been well established by the Group and the Company since 2010. Besides that, during the year, the Group and the Company have also established the quarterly Modified Solvency Margin ratio (MSMR) and Stress Testing and the Assets and Liabilities Management Framework. Besides the key internal control elements already in place, Whistle Blowing Policy & Fraud and Integrity Policy, Shariah Governance Framework and Assets and Liabilities Management Framework were also introduced during the year to provide basic structure and further strengthen the existing control mechanism underlying the business activities. The Group and the Company have established adequate internal control system to address the need for an effective and efficient business operations, sound financial reporting and control procedures and compliance with relevant laws and regulations. (e) Public Accountability As custodian of public funds, the Group's and the Company’s dealings with the public are always conducted fairly, honestly and professionally. (f) Financial Reporting The Group and the Company have maintained proper accounting records and the Group's and the Company’s financial statements are prepared in accordance with Financial Reporting Standards (FRS) issued by the Malaysian Accounting Standards Board (MASB), the provisions of the Companies Act, 1965, the Takaful (Amendment) Act, 1984 and Takaful Guidelines/Circular issued by BNM and Principles of Shariah. Other statutory information Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: i)

all known impaired debts have been written off and adequate impairment allowance made for impaired debts,

ii) any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which they might be expected so to realise, and iii) there was adequate provision for incurred claims, including Incurred But Not Reported (IBNR) claims. At the date of this report, the Directors are not aware of any circumstances: i)

that would render the amount written off for impaired debts, or the amount of the provision for impaired debts and provision for incurred claims including IBNR claims in the Group and in the Company inadequate to any substantial extent, or



Statement on corporate governance and internal controls (continued) Other statutory information (continued) ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading. At the date of this report, there does not exist: i)

any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the liabilities of any other person, or

ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year. No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. For the purpose of this paragraph, contingent and other liabilities do not include liabilities arising from contracts of takaful underwritten in the ordinary course of business of the Group and the Company. In the opinion of the Directors, the results of the operations of the Group and of the Company for the financial year ended 31 December 2011 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of the financial year and the date of this report. Auditors The auditors, Messrs KPMG Desa Megat & Co., have indicated their willingness to accept re-appointment. Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

Dato’ Paduka Ismee Ismail

Dato’ Mohamed Hassan Md. Kamil

Kuala Lumpur, Date: 22 March 2012

081

082


Statement by Directors pursuant to Section 169(15) of the Companies Act, 1965

In the opinion of the Directors, the financial statements set out on pages 87 to 242 are drawn up in accordance with the provisions of the Companies Act, 1965 and Financial Reporting Standards issued by the Malaysian Accounting Standards Board and comply with the Principles of Shariah so as to give a true and fair view of the state of affairs of the Group and of the Company at 31 December 2011 and of the results of their operations and cash flows for the year then ended. In the opinion of the Directors, the information set out in Note 47 to the financial statements have been compiled in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad. Signed in accordance with a resolution of the Directors:

Dato’ Paduka Ismee Ismail

Dato’ Mohamed Hassan Md. Kamil

Kuala Lumpur, Date: 22 March 2012


Statutory declaration pursuant to Section 169(16) of the Companies Act, 1965

I, Lee Hin Sze, the officer primarily responsible for the financial management of Syarikat Takaful Malaysia Berhad, do solemnly and sincerely declare that the financial statements set out on pages 87 to 243 are, to the best of my knowledge and belief, 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 above named in Kuala Lumpur on 22 March 2012.

Lee Hin Sze

Before me:

083

084


Independent auditors’ report to the members of Syarikat Takaful Malaysia Berhad (Company No. 131646-K) (Incorporated in Malaysia)

Report on the Financial Statements We have audited the financial statements of Syarikat Takaful Malaysia Berhad, which comprise the statements of financial position as at 31 December 2011 of the Group and of the Company, and the statements of comprehensive income, statements of changes in equity and statements of cash flow of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 87 to 242. Directors’ Responsibility for the Financial Statements The directors of the Company are responsible for the preparation of these financial statements that give a true and fair view in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia, and for such internal controls as the Directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 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 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 entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, 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 give a true and fair view of the financial position of the Group and of the Company as of 31 December 2011 and of their financial performance and cash flows for the year then ended in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. Report on Other Legal and Regulatory Requirements In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following: a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act. b) We have considered the accounts and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 5 to the financial statements.


Independent auditors’ report to the members of Syarikat Takaful Malaysia Berhad (Company No. 131646-K) (Incorporated in Malaysia)

Report on Other Legal and Regulatory Requirements (continued) c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes. d) The audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act. Other Reporting Responsibilities Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The information set out in Note 47 to the financial statements has been compiled by the Company as required by the Bursa Malaysia Securities Berhad Listing Requirements and is not required by the Financial Reporting Standards. We have extended our audit procedures to report on the process of compilation of such information. In our opinion, the information has been properly compiled, in all material respects, in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants and presented based on the format prescribed by Bursa Malaysia Securities Berhad. Other Matters This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

KPMG Desa Megat & Co Khaw Hock Hoe Firm Number: AF: 0759 Approval Number: 2229/04/12 (J) Chartered Accountants Chartered Accountant

Petaling Jaya, Selangor Date: 22 March 2012

085

086


Report Of The Shariah Advisory Body

We have reviewed the principles and the contracts relating to the transactions and applications introduced by Syarikat Takaful Malaysia Berhad (Takaful Malaysia) during the financial year ended 31 December 2011. We have also conducted our reviews to form an opinion as to whether Takaful Malaysia complied with the Shariah and with the Shariah rulings issued by the Shariah Advisory Council of Bank Negara Malaysia. The management of Takaful Malaysia is responsible for ensuring that Takaful Malaysia conducts its business in accordance with the Shariah. It is our responsibility to form an independent opinion, based on our reviews of the operations of Takaful Malaysia. We have assessed the work carried out during Shariah reviews which included examining, on a test basis, each type of transaction, the relevant documentation and procedures adopted by Takaful Malaysia. We planned and performed our reviews so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that Takaful Malaysia did not violate the Shariah. In carrying out our roles and responsibilities, we hereby submit the following report for the financial year ended 31 December 2011: 1. The Shariah Advisory Body (SAB) held six (6) meetings to review various products, transactions and processes in line with the Shariah. 2. In the said meetings, we discussed and approved the internal Shariah Governance Framework and Takaful Operational Framework including five (5) policies/guidelines to be implemented by Takaful Malaysia. 3. We also approved six (6) new products, ten (10) new riders and several enhancements to four (4) existing products. 4. In addition, we have also approved the Mudharabah (profit) rate declarations for Family and General Takaful products. 5. We also discussed and approved proposals/issues related to takaful products. 6. The Company during the financial year under review has tracked the non-halal income and disposed to charity upon obtaining approval from the SAB. In our opinion:1. The contracts, transactions and dealings entered into by Takaful Malaysia during the financial year ended 31 December 2011 were in compliance with the Shariah; 2. All investments were Shariah compliant; 3. The allocation of profits and charging of losses relating to investment accounts conformed to the basis that were approved by us in accordance with the Shariah; 4. All earnings that were realised from sources or by means prohibited by the Shariah were considered for disposal to charitable causes; and 5. The calculation of zakat was in compliance with the Shariah. We, the members of the Shariah Advisory Body of Takaful Malaysia, do hereby confirm that the operations of Takaful Malaysia for the financial year ended 31 December 2011 were conducted in conformity with the Shariah. We bear witness only to what we know, and we could not well guard against the unseen! (surah Yusuf, verse: 81)

Chairman of the SAB : ……………………………… Dr. Ahmad Shahbari @ Sobri Salamon

Member of the SAB : ……………………………… Ustaz Mohd. Bakir Hj. Mansor Kuala Lumpur, Date: 22 March 2012


Statements of financial position as at 31 December 2011

31.12.2011 31.12.2010 1.7.2009 31.12.2011 31.12.2010 1.7.2009 Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Restated Restated Restated Restated ASSETS Shareholders’ assets Property and equipment Investment properties Investment in subsidiaries Investment in associate Investments Financing receivables Other investments Deferred tax assets Loans and receivables, excluding takaful receivables Qardh receivables Cash and cash equivalents Assets held for sale

3 4 5 6 7 8 9 10

27,741 18,758 - - - - 268,445 15,811

29,897 11,958 - - 362,084 14,438 - 12,979

35,747 11,156 - - 267,984 14,018 - 8,185

20,528 17,750 63,729 - - - 255,631 11,301

22,642 11,665 70,747 - 293,262 10,283 - 5,985

28,109 10,865 72,247 202,353 13,411 4,295

12 14 15 16

181,595 277 61,265 -

50,298 1,357 2,691 -

46,741 31,722 7,596 1,471

139,019 - 27,811 -

36,161 - 2,321 -

29,202 28,274 6,473 1,471

Total Shareholders’ assets Total Family Takaful assets (page 94) Total General Takaful assets (page 97) Less : Interfund balances TOTAL ASSETS

573,892

485,702

424,620

535,769

453,066

396,700

4,194,482

3,788,476

3,375,412

3,895,081

3,527,048

3,174,037

1,148,083 (32,533)

1,043,852 (45,446)

872,226 (57,418)

1,073,410 (26,543)

931,842 (38,569)

777,160 (41,834)

5,883,924

5,272,584

4,614,840

5,477,717

4,873,387

4,306,063

162,817 287,206

162,817 222,975

162,817 186,677

162,817 291,554

162,817 232,866

162,817 200,411

Total equity attributable to owners of the Company Non-controlling interest

450,023 27,469

385,792 27,252

349,494 27,951

454,371 -

395,683 -

363,228 -

Total equity

477,492

413,044

377,445

454,371

395,683

363,228

SHAREHOLDERS’ EQUITY Share capital Reserves

17 18

087

088


Statements of financial position as at 31 December 2011

31.12.2011 31.12.2010 1.7.2009 31.12.2011 31.12.2010 1.7.2009 Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Restated Restated Restated Restated LIABILITIES Shareholders’ liabilities Provision for wakalah fee 20 Other payables 22 Tax payable

19,739 65,997 10,664

12,502 35,309 24,847

- 46,476 699

15,758 55,268 10,372

9,800 22,921 24,662

33,077 395

96,400

72,658

47,175

81,398

57,383

33,472

Total Shareholders’ liabilities Total Family Takaful liabilities (page 94) Total General Takaful liabilities (page 97) Less : Interfund balances

260,406

228,170

285,520

234,989

204,698

252,296

983,118 (32,533)

896,143 (45,446)

784,625 (57,418)

873,941 (26,543)

753,098 (38,569)

661,303 (41,834)

TOTAL LIABILITIES

1,307,391

1,151,525

1,059,902

1,163,785

976,610

905,237

3,934,076

3,560,306

3,089,892

3,660,092

3,322,350

2,921,741

164,965

147,709

87,601

199,469

178,744

115,857

5,883,924

5,272,584

4,614,840

5,477,717

4,873,387

4,306,063

Family participants’ fund (page 94) General participants’ fund (page 97) TOTAL SHAREHOLDERS’ EQUITY, PARTICIPANTS’ FUNDS AND LIABILITIES

The notes on pages 103 to 242 are an integral part of these financial statements.


Statements of comprehensive income for the year ended 31 December 2011

Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 Operating revenue

1,349,907

1,728,588

1,144,685

1,440,735

97,818 85,547

102,924 118,908

92,761 84,816

101,349 118,679

183,365

221,832

177,577

220,028

Wakalah fee income Investment income 27 Realised gains and losses 28 Fair value gains and losses 29 Other operating income 30

144,433 14,382 9,299 1,460 10,238

141,962 17,086 6,229 (668) 20,095

84,490 11,652 8,555 1,450 6,907

66,944 12,352 6,179 (671) 9,493

179,812

184,704

113,054

94,297

Management expenses 31 Commission expense Other operating expenses 33

(197,031) (61,636) (3,092)

(241,281) (59,097) (8,272)

(157,510) (30,268) (8,894)

(192,211) (23,860) (5,232)

(261,759)

(308,650)

(196,672)

(221,303)

Profit before zakat and taxation Zakat Taxation 34

101,418 (733) (24,306)

97,886 (516) (39,621)

93,959 (474) (21,776)

93,022 (358) (42,808)

Profit for the year/period

76,379

57,749

71,709

49,856

Transfer from statements of comprehensive income Family takaful General takaful

24

23(a) 23(b)

089

090


Statements of comprehensive income for the year ended 31 December 2011

Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 Profit for the year/period

76,379

57,749

961

(4,749)

71,709

49,856

Other comprehensive income/(expense) (net of tax) Foreign currency translation differences for foreign operations Fair value change of available-for-sale financial assets - Gains arising during the year - Reclassification adjustments for gains included in profit or loss

4,486

-

3,811

-

(7,139) (2,653)

- -

(6,395) (2,584)

-

Total other comprehensive expense for the year/period

(1,692)

(4,749)

(2,584)

-

Total comprehensive income for the year/period

74,687

53,000

69,125

49,856

Profit/(loss) for the year/period attributable to: Owners of the Company Non-controlling interests

76,785 (406)

56,346 1,403

71,709 -

49,856 -

76,379

57,749

71,709

49,856

Total comprehensive income/(expense) for the year/period attributable to: Owners of the Company Non-controlling interests

74,557 130

53,699 (699)

69,125 -

49,856 -

74,687

53,000

69,125

49,856

Basic earnings per ordinary share (sen)

36

47.2

-

34.6


-


Statements of changes in equity for the year ended 31 December 2011

Distributable Non-

Share

Share Translation Fair value Retained controlling Total

capital premium

reserve

reserve

profits Total

interests

equity

Group Note

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 July 2009

162,817

4,098

(3,642)

-

186,221

349,494

27,951

377,445

-

-

(2,647)

-

-

(2,647)

(2,102)

(4,749)

for the period

-

-

(2,647)

-

-

(2,647)

(2,102)

(4,749)

Profit for the period

-

-

-

-

56,346

56,346

1,403

57,749

-

-

(2,647)

-

56,346

53,699

(699)

53,000

-

-

-

-

(17,401)

(17,401)

-

(17,401)

Total distribution to owners

-

-

-

-

(17,401)

(17,401)

-

(17,401)

At 31 December 2010

162,817

4,098

(6,289)

-

225,166

385,792

27,252

413,044

Foreign currency translation differences for foreign operations Total other comprehensive expense

Total comprehensive (expense)/ income for the period Dividends to owners of the Company

37

Note 17 Note 18.1 Note 18.2 Note 18.3

091

092



Distributable Non-

Share

Share Translation Fair value Retained controlling Total

capital premium

reserve

reserve

profits Total

interests

equity

Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2011, as previously stated

162,817

4,098

(6,289)

-

225,166

385,792

27,252

413,044

-

-

-

7,584

-

7,584

87

7,671

162,817

4,098

(6,289)

7,584

225,166

393,376

27,339

420,715

-

-

395

-

-

395

566

961

-

-

-

4,452

-

4,452

34

4,486

-

-

-

(7,075)

-

(7,075)

(64)

(7,139)

income/(expense) for the year

-

-

395

(2,623)

-

(2,228)

536

(1,692)

Profit/(loss) for the year

-

-

-

-

76,785

76,785

(406)

76,379

-

-

395

(2,623)

76,785

74,557

130

74,687

-

-

-

-

(17,910)

(17,910)

-

(17,910)

Total distribution to owners

-

-

-

-

(17,910)

(17,910)

-

(17,910)

At 31 December 2011

162,817

4,098

(5,894)

4,961

284,041

450,023

27,469

477,492

Effect of adopting FRS139

45.2

At 1 January 2011, restated Foreign currency translation differences for foreign operations Fair value of available-for-sale financial assets - Gains arising during the year - Reclassification adjustments for gains included in profit or loss Total other comprehensive

Total comprehensive income/ (expense) for the year Dividends to owners of the Company

37

Note 17 Note 18.1 Note 18.2 Note 18.3




Distributable Share Share Fair value Retained capital premium reserve profits Total Company Note RM’000 RM’000 RM’000 RM’000 RM’000 At 1 July 2009

162,817

4,098

-

196,313

363,228


-

-

-

49,856

49,856

Total comprehensive income for the period

-

-

-

49,856

49,856

Dividends to owners of the Company

-

-

-

(17,401)

(17,401)

-

-

-

(17,401)

(17,401)

-

228,768

395,683

37

Total distribution to owners At 31 December 2010

162,817

4,098

At 1 January 2011 (as previously stated) Effect of adopting FRS139 45.2

162,817 -

4,098 -

- 7,473

228,768 -

395,683 7,473

At 1 January 2011 (restated)

162,817

4,098

7,473

228,768

403,156

Fair value of available-for-sale financial assets - Gains arising during the year - Reclassification adjustments for gains included in profit or loss

-

-

3,811

-

3,811

-

-

(6,395)

-

(6,395)

Total other comprehensive expense for the year Profit for the year

- -

- -

(2,584) -

- 71,709

(2,584) 71,709

Total comprehensive (expense)/income for the year

-

-

(2,584)

71,709

69,125

Dividends to owners of the Company

-

-

-

(17,910)

(17,910)

-

-

-

(17,910)

(17,910)

282,567

454,371

37

Total distribution to owners At 31 December 2011

162,817

4,098

4,889

Note 17 Note 18.2 Note 18.3


093

094


Family takaful statements of financial position as at 31 December 2011

31.12.2011 31.12.2010 1.7.2009 31.12.2011 31.12.2010 1.7.2009 Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Restated Restated Restated Restated ASSETS Investment properties Investments Financing receivables Other investments Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Cash and cash equivalents Assets held for sale Investment-linked takaful assets

4 7 8 9 11

210,619 - - 2,825,359 72,810

206,980 3,164,455 72,376 - 43,009

204,983 2,785,629 9,382 - 10,986

202,435 - - 2,717,825 66,800

198,172 2,998,193 72,376 - 37,177

196,097 2,666,468 5,662 6,615

12 13 15 16

563,214 61,487 265,819 668

47,644 43,657 9,304 -

47,938 68,830 53,258 800

548,062 53,490 180,337 668

47,528 35,292 4,368 -

47,888 61,048 47,982 800

35

194,506

201,051

193,606

125,464

133,942

141,477

4,194,482

3,788,476

3,375,412

3,895,081

3,527,048

3,174,037

19 21 22

102,681 18,863 133,183

52,904 15,217 156,275

43,817 29,152 197,951

93,693 15,297 120,320

44,471 12,233 144,220

34,227 21,591 181,878

35

5,679

3,774

14,600

5,679

3,774

14,600

260,406

228,170

285,520

234,989

204,698

252,296

3,934,076

3,560,306

3,089,892

3,660,092

3,322,350

2,921,741

4,194,482

3,788,476

3,375,412

3,895,081

3,527,048

3,174,037

Total Family Takaful assets

LIABILITIES Takaful contract liabilities Takaful payables Other payables Investment-linked takaful liabilities

Total Family Takaful liabilities

Participants’ fund Family Takaful Fund

23

Total Family Takaful liabilities and participants’ fund



Family takaful statements of comprehensive income for the year ended 31 December 2011

Group Company 1.1.2011 1.7.2009 1.1.2011 1.7.2009 to to to to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 Gross earned contributions Contribution ceded to retakaful

25 25

694,719 (28,671)

857,487 (30,100)

563,342 (12,609)

699,073 (6,150)

Net earned contributions

25

666,048

827,387

550,733

692,923

Net benefits paid and payable 26 Administration fee Wakalah fee

(454,722) (6,383) (121,096)

(527,407) (4,199) (106,036)

(395,915) (6,383) (84,490)

(457,241) (4,199) (66,944)

83,847

189,745

63,945

164,539

Underwriting profit/(loss) - Individual Family - Group Family and others - Group Family ILB

54,441 29,568 (162)

150,835 36,714 2,196

39,350 24,757 (162)

130,026 32,317 2,196

Less: Underwriting profit - Individual Family

83,847

189,745

63,945

164,539

(54,441)

(150,835)

(39,350)

(130,026)

Underwriting profit - Group Family and others and Group Family ILB Investment income 27 Realised gains and losses 28 Fair value gains and losses 29 Other operating income 30 Other operating expenses 33

29,406 165,760 71,641 12,009 37,116 (9,544)

38,910 228,693 62,937 32,846 48,576 (2,074)

24,595 154,058 69,681 9,393 36,017 (9,544)

34,513 213,420 53,662 18,604 40,519 (2,074)

Total profit for the year/period after excluding underwriting profit for Individual Family

306,388

409,888

284,200

358,644

095

096


Family takaful statements of comprehensive income for the year ended 31 December 2011

Group Company 1.1.2011 1.7.2009 1.1.2011 1.7.2009 to to to to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 Total profit for the year/period after excluding underwriting profit for Individual Family Less: Allocation of special reserves

306,388 (4,542)

409,888 (7,413)

284,200 (4,542)

358,644 (7,413)

Profit attributable to the Group/Company and participants for the year/period after excluding underwriting profit for Individual Family Profit attributable to the Group/Company transferred to statement of comprehensive income 23(a)

301,846

402,475

279,658

351,231

(97,818)

(102,924)

(92,761)

(101,349)

Profit payable to participants 23(a)

204,028 (2,420)

299,551 (1,148)

186,897 (2,029)

249,882 (1,148)

Profit attributable to participants for the year/period:

201,608

298,403

184,868

248,734



General Takaful Statements of Financial Position as at 31 December 2011

31.12.2011 31.12.2010 1.7.2009 31.12.2011 31.12.2010 1.7.2009 Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Restated Restated Restated Restated Assets Investment properties Investments Financing receivables Other investments Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Cash and cash equivalents

4 7 8 9 11

26,620 - - 508,119 342,614

29,234 630,589 6,320 - 285,124

28,954 525,028 3,478 - 231,619

26,620 - - 505,375 313,102

29,234 610,474 6,320 - 216,531

28,954 502,427 3,478 180,568

12 13 15

175,498 47,462 47,770

17,179 63,565 11,841

18,913 55,308 8,926

164,076 31,496 32,741

16,716 42,415 10,152

14,707 41,340 5,686

1,148,083

1,043,852

872,226

1,073,410

931,842

777,160

883,655 26,041 73,422

775,598 35,237 85,308

633,145 40,971 110,509

804,344 23,522 46,075

659,478 31,096 62,524

536,372 34,236 90,695

Total General Takaful liabilities

983,118

896,143

784,625

873,941

753,098

661,303

Participants’ fund General Takaful Fund

164,965

147,709

87,601

199,469

178,744

115,857

1,148,083

1,043,852

872,226

1,073,410

931,842

777,160

Total General Takaful assets

Liabilities Takaful contract liabilities Takaful payables Other payables

19 21 22

23

Total General Takaful liabilities and participants’ fund


097

098


General Takaful Statements of Comprehensive Income for the year ended 31 December 2011

Marine Fire Motor Aviation & Transit Miscellaneous Total 1.1.2011 1.7.2009 1.1.2011 1.7.2009 1.1.2011 1.7.2009 1.1.2011 1.7.2009 1.1.2011 1.7.2009 to to to to to to to to to to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Gross earned contributions Contributions ceded to Retakaful

25

118,471

173,406

181,524

236,706

13,562

18,312

88,190

25

(67,010)

(95,050)

(5,957)

(1,798)

(5,173)

(8,836)

(36,261)

(40,212) (114,401) (145,896)

Net earned contributions 25 Net claims incurred 26 Wakalah fee Administration income Administration fee

51,461 (22,919) (5,890) 18,541 (10,464)

78,356 175,567 234,908 (19,434) (143,097) (158,840) (9,784) (10,366) (14,089) 23,867 - 4 (15,345) (10,635) (16,676)

8,389 (3,423) (1,704) 865 (1,921)

9,476 (10,979) (2,849) 1,100 (2,118)

51,929 (31,737) (5,377) 5,302 (9,789)

82,482 287,346 405,222 (38,620) (201,176) (227,873) (9,204) (23,337) (35,926) 6,805 24,708 31,776 (11,809) (32,809) (45,948)

Underwriting surplus/(deficit)

30,729

2,206

(5,370)

10,328

Investment income Realised gains and losses Fair value gains and losses Other operating income Other operating expenses Total profit for the year/period Transfer to statements of comprehensive income

57,660

11,469

45,307

122,694

401,747

551,118

29,654

54,732

127,251

27

28,532

36,546

28

16,389

13,892

29

643

280

30

45,711

15,050

33

(5,458)

(448)

140,549

192,571

23(b)

(85,547) (118,908)

Participants’ share of profit Profit payable to participants 23(b)

55,002

73,663

(23,173)

(16,740)

Profit attributable to participants for the year/period

31,829

56,923



General Takaful Statements of Comprehensive Income for the year ended 31 December 2011

Marine Fire Motor Aviation & Transit Miscellaneous Total 1.1.2011 1.7.2009 1.1.2011 1.7.2009 1.1.2011 1.7.2009 1.1.2011 1.7.2009 1.1.2011 1.7.2009 to to to to to to to to to to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Company Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Gross earned contributions Contributions ceded to Retakaful

25

95,803

137,603

158,194

200,685

9,226

12,376

71,545

105,498

334,768

25

(56,633)

(78,292)

(4,183)

4,014

(3,864)

(9,222)

(25,212)

(38,399)

(89,892) (121,899)

Net earned contributions 25 Net claims incurred 26 Administration income Administration fee

39,170 (18,969) 18,540 (9,222)

59,311 154,011 204,699 (13,578) (126,593) (139,252) 23,867 - 4 (13,480) (11,382) (16,673)

5,362 (2,582) 866 (1,480)

3,154 (6,731) 1,100 (1,627)

46,333 (29,094) 5,302 (9,061)

67,099 244,876 334,263 (31,504) (177,238) (191,065) 6,805 24,708 31,776 (10,900) (31,145) (42,680)

Underwriting surplus/(deficit)

29,519

2,166

(4,104)

13,480

Investment income Realised gains and losses Fair value gains and losses Other operating income Other operating expenses

56,120

16,036

48,778

456,162

31,500

61,201

132,294

27

27,923

35,641

28

16,311

13,892

29

643

280

30

41,157

16,139

33

(5,458)

(448)

141,777

197,798

Total profit for the year/period Transfer to statements of comprehensive income 23(b)

(84,816) (118,679)

Participants’ share of profit Profit payable to participants 23(b)

56,961

79,119

(22,527)

(16,232)

Profit attributable to participants for the year/period

34,434

62,887


099

100


Statements of cash flows for the year ended 31 December 2011

Group Company 1.1.2011 1.7.2009 1.1.2011 1.7.2009 to to to to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Cash flows from operating activities Profit before zakat and taxation 101,418 Adjustments for: Depreciation - Shareholders’ Fund 10,601 Fair value change of investment properties (5,942) Fair value change of fair value through profit and loss financial assets (8,170) Income from financing receivables (843) Income from Islamic debt securities, investment accounts and Islamic accepted bills (145,814) Dividend income from Shariah approved shares (24,057) Gains on disposal of available-for-sale financial assets (97,597) Gains on disposal of property and equipment (29) Losses/(Gains) on disposal of investment properties 297 Write off of property and equipment 36 Amortisation of premiums, net of accretion of discounts (1,741) Reversal of diminution in value of investments - Shareholders’ Fund - - Family Takaful Fund - - General Takaful Fund - Allowance for impairment in available-for-sale financial assets 8,250 Impairment loss of investment in a subsidiary - Profit from Malaysian Government Islamic papers (27,345) Operating loss before working capital changes

(190,936)

97,886

93,959

93,022

13,707 (1,866)

9,419 (5,932)

11,988 (1,684)

- (2,994)

(5,554) (843)

(2,379)

(190,813)

(131,471)

(171,361)

(25,422)

(24,057)

(25,384)

(82,908)

(94,815)

(45,895)

(104)

(29)

(54)

(46) 27 (7,863)

297 36 (1,741)

27 (7,863)

(2,163) (47,595) (1,839) -

- - - 8,250

(1,497) (41,862) (1,416) -

-

7,018

1,500

(38,285)

(27,345)

(38,285)

(290,278)

(172,808)

(231,143)



Group Company 1.1.2011 1.7.2009 1.1.2011 1.7.2009 to to to to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Operating loss before working capital changes (190,936) Increase in Family Takaful Fund 312,837 Increase in General Takaful Fund 115,933 Decrease/(Increase) in other investments/investments 405,959 Income from Islamic debt securities, investment accounts, Islamic accepted bills and profit from Malaysian Government Islamic papers 145,814 Dividend income from Shariah approved shares 24,057 (Decrease)/Increase in payables (including claims admitted but not paid) 12,770 (Increase)/Decrease in receivables (76,711)

(290,278)

(172,808)

(231,143)

408,573 93,645 (448,666)

275,811 174,943 136,219

341,656 94,743 (429,228)

190,813

131,471

171,361

25,422

24,057

25,384

3,822 10,764

7,308 (113,275)

5,386 17,279

749,723 (1,288) (42,905)

(5,905) (2,775) (16,952)

463,726 (405) (43,012)

(4,562) (3,104) (16,814)

Net cash generated from/(used in) operating activities 705,530

(25,632)

420,309

(24,480)

- - (7,948)

(1,815,871) 1,653,631 (11,992)

(6,561)

156 - 1,006

45 (5,535) 7,403

863 -

(6,786)

(172,319)

(5,698)

Zakat paid Income taxes paid

Cash flows from investing activities Purchase of investments (2,060,964) Proceeds from sale of investments 1,744,682 Purchase of property and equipment (13,155) Proceeds from sale of property and equipment 138 Purchase of investment properties (5,535) Proceeds from sale of investment properties 7,403 Net cash used in investing activities

(327,431)

101

102



Group Company 1.1.2011 1.7.2009 1.1.2011 1.7.2009 to to to to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Cash flows from financing activity Dividends paid to owners of the Company (17,910)

(17,401)

(17,910)

(17,401)

(17,910)

(17,401)

(17,910)

(17,401)

360,189 31

(49,819) (932)

230,080 -

(47,579) -

26,307

77,058

18,919

66,498

Cash and cash equivalents at the end of financial year/period 386,527

26,307

248,999

18,919

Cash and cash equivalents comprise: Cash and bank balances and fixed and call deposits with licensed financial institution with maturity less than three months - Shareholders’ Fund (Note 15) - Family Takaful Fund (Note 15) - Investment-linked Business (Note 35) - General Takaful Fund (Note 15)

61,265 265,819 11,673 47,770

2,691 9,304 2,471 11,841

27,811 180,337 8,110 32,741

2,321 4,368 2,078 10,152

386,527

26,307

248,999

18,919

Net cash used in financing activity Net increase/(decrease) in cash and cash equivalents Effect of movement in exchange rates Cash and cash equivalents at the beginning of financial year/period



Notes to the financial statements

Syarikat Takaful Malaysia Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of the Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business of the Company is located at: 26th Floor, Annexe Block Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur The consolidated financial statements of the Company as at and for the year ended 31 December 2011 comprise the Company and its subsidiaries (together referred to as the Group). The financial statements of the Company as at and for the year ended 31 December 2011 do not include other entities. The Company is principally engaged in managing family and general takaful businesses, whilst the principal activities of the subsidiaries, are as stated in Note 5 to the financial statements. There has been no significant change in the nature of these activities during the financial year. The immediate holding company is BIMB Holdings Berhad, a company incorporated in Malaysia and listed on the Main Market of the Bursa Malaysia Securities Berhad. The ultimate holding corporation of the Company is Lembaga Tabung Haji, a statutory body established under the Tabung Haji Act 1995 (Act 535). The financial statements were authorised for issue by the Board of Directors on 22 March 2012. 1. Basis of preparation (a) Statement of compliance The financial statements of the Group and of the Company have been prepared in accordance with Financial Reporting Standards (FRS) issued by the Malaysian Accounting Standards Board (MASB), accounting principles generally accepted in Malaysia and the provisions of the Companies Act, 1965, the Takaful (Amendment) Act, 1984 and Takaful Guidelines/ Circulars issued by Bank Negara Malaysia. These financial statements also comply with the applicable disclosure provisions of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad. The Group and the Company have not applied the following accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board (MASB) which are not yet effective for the Group and the Company: FRSs, Interpretations and amendments effective for annual periods beginning on or after 1 July 2011 -

IC 19, Extinguishing Financial Liabilities with Equity Instruments

-

Amendments to IC Interpretation 14, Prepayments of a Minimum Funding Requirement

FRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2012 -

FRS 124, Related Party Disclosures (revised)

-

Amendments to FRS 1, First-time Adoption of Financial Reporting Standards – Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters

103

104



1. Basis of preparation (continued)

(a) Statement of compliance (continued) FRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2012 (continued) - Amendments to FRS 7, Financial Instruments: Disclosures – Transfers of Financial Assets -

Amendments to FRS 112, Income Taxes – Deferred Tax: Recovery of Underlying Assets

FRSs, Interpretations and amendments effective for annual periods beginning on or after 1 July 2012 -

Amendments to FRS 101, Presentation of Financial Statements – Presentation of Items of Other Comprehensive Income

FRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2013 -

FRS 9, Financial Instruments (2009)

-

FRS 9, Financial Instruments (2010)

-

FRS 10, Consolidated Financial Statements

-

FRS 11, Joint Arrangements

-

FRS 12, Disclosure of Interests in Other Entities

-

FRS 13, Fair Value Measurement

-

FRS 119, Employee Benefits (2011)

-

FRS 127, Separate Financial Statements (2011)

-

FRS 128, Investment in Associates and Joint Ventures (2011)

-

IC Interpretation 20, Stripping Costs in the Production Phase of a Surface Mine

The Group’s and the Company’s next set of financial statements for annual period beginning on 1 January 2012 will be prepared in accordance with the Malaysian Financial Reporting Standards (MFRS) issued by the MASB that will also comply with International Financial Reporting Standards (IFRS). As a result, the Group and the Company will not be adopting the above FRSs, Interpretations and amendments that becomes effective for annual periods beginning on or after 1 July 2011 onwards. (b) Basis of measurement The financial statements of the Group and of the Company have been prepared on the historical cost basis except as disclosed in the notes to the financial statements.



1. Basis of preparation (continued) (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated. (d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual result may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have a significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes: • Note 2(e) and Note 4 – Investment properties • Note 2(f) and Note 41 – Financial Instruments • Note 2(p) and 2(q), Note 11, Note 19 and Note 23 – Provision for outstanding claims including IBNR claims, Family Takaful Funds and actuarial reserves. 2. Summary of significant accounting policies The accounting policies set out below have been applied consistently to periods presented in these financial statements, and have been applied consistently by Group entities, unless otherwise stated.

(a) Basis of consolidation (i) Subsidiaries Subsidiaries are entities, including unincorporated entities, controlled by the Group. Control exists when the Group has the ability to exercise its power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. Investments in subsidiaries are stated in the Company’s statement of financial position at cost less any impairment losses, unless the investment is held for sale or distribution. The cost of investments includes transaction costs. The accounting policies of subsidiaries are changed when necessary to align them with the policies adopted by the Group. (ii) Accounting for business combinations Business combinations are accounted for using the acquisition method from the acquisition date, which is the date on which control is transferred to the Group.

105

106



2. Summary of significant accounting policies (continued)

(a) Basis of consolidation (continued) (ii) Accounting for business combinations (continued) The Group has changed its accounting policy with respect to accounting for business combinations. From 1 January 2011, the Group has applied FRS 3, Business Combinations (revised) in accounting for business combinations. The change in accounting policy has been applied prospectively in accordance with the transitional provisions provided by the standard and does not have any impact on earnings per share. Acquisitions on or after 1 January 2011 For acquisition on or after 1 January 2011, the Group measures goodwill at the acquisition date as:

• • • •

the fair value of the consideration transferred; plus the recognised amount of any non-controlling interests in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.

When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Costs related to the acquisition, other than those associated with the issue of Islamic debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profit or loss. When share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s employees (acquiree’s awards) and relate to past services, then all or a portion of the amount of the acquiree’s replacement awards is included in measuring the consideration transferred in the business combination. This determination is based on the market-based value of the replacement awards compared with the market-based value of the acquiree’s awards and the extent to which the replacement awards relate to past and/or future service. Acquisitions between 1 January 2006 to 1 January 2011 For acquisition between 1 January 2006 to 1 January 2011, goodwill represents the excess of the cost of the acquisition over the Group’s interest in the recognised amount (generally fair value) of the identifiable assets, liabilities and contingent liabilities of the acquire. When the excess was negative, a bargain purchase gain was recognised immediately in profit or loss. Transaction costs, other than those associated with the issue of Islamic debt or equity securities, that the Group incurred in connection with business combinations were capitalised as part of the cost of the acquisition.




(a) Basis of consolidation (continued) (ii) Accounting for business combinations (continued) Acquisitions prior to 1 January 2006 For acquisitions prior to 1 January 2006, goodwill represents the excess of the cost of the acquisition over the Group’s interest in the fair values of the net identifiable assets and liabilities. (iii) Accounting for acquisition of non-controlling interests The Group treats all changes in its ownership interest in a subsidiary that do not result in a loss of control as equity transactions between the Group and its non-controlling interest holders. Any difference between the Group’s share of net assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves. (iv) Associates Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies. Investments in associates are accounted for in the consolidated financial statements using the equity method less any impairment losses, unless it is classified as held for sale or distribution. The cost of investments includes transaction costs. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the equity accounted associate, after adjustments if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interest in an associate, the carrying amount of that interest including any long-term investments is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. Investments in associates are stated in the Company’s statement of financial position at cost less any impairment losses, unless the investment is classified as held for sale or distribution. The cost of investments includes transaction costs. (v) Non-controlling interest Non-controlling interests at the end of the reporting period, being the equity in a subsidiary not attributable directly or indirectly to the equity holders of the Company, are presented in the consolidated statement of financial position and statement of changes in equity within equity, separately from equity attributable to the owners of the Company. Noncontrolling interests in the results of the Group is presented in the consolidated statement of comprehensive income as an allocation of the profit or loss and the comprehensive income for the year between non-controlling interests and the owners of the Company. From 1 January 2011, the Group has applied FRS 127, Consolidated and Separate Financial Statements (revised) where losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance. This change in accounting policy is applied prospectively in accordance with the transitional provisions of the standard and does not have any impact on earnings per share.

107

108




(a) Basis of consolidation (continued) (v) Non-controlling interest (continued) In the previous years, where losses applicable to the non-controlling interests exceed their interests in the equity of a subsidiary, the excess, and any further losses applicable to the non-controlling interests, were charged against the Group’s interest except to the extent that the non-controlling interests has a binding obligation to, and was able to, make additional investment to cover the losses. If the subsidiary subsequently reported profits, the Group’s interest was allocated with all such profits until the non-controlling interests’ share of losses previously absorbed by the Group had been recovered. (vi) Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity accounted associates are eliminated against the investment to the extent of the Group’s interest in the associates. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

(b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are retranslated to the functional currency at the exchange rates at that date. Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the end of the reporting date except for those that are measured at fair value are retranslated to the functional currency at the exchange rates at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the profit or loss, except for differences arising on the retranslation of available-for-sale equity instruments, which are recognised in other comprehensive income. (ii) Operations denominated in functional currencies other than Ringgit Malaysia The assets and liabilities of operations denominated in functional currencies other than RM, including goodwill and fair value adjustments arising on acquisition, are translated to RM at exchange rates at the end of the reporting period, except for goodwill and fair value adjustments arising from business combinations before 1 January 2006 which are reported using the exchange rates at the dates of the acquisitions. The income and expenses of foreign operations, are translated to RM at exchange rates at the dates of the transactions.




(b) Foreign currency (continued) (ii) Operations denominated in functional currencies other than Ringgit Malaysia (continued) Foreign currency differences are recognised in other comprehensive income and accumulated in the foreign currency translation reserve (FCTR). However, if the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the FCTR related to that foreign operation is reclassified to gain or loss as part of the profit or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

(c) Property and equipment (i) Recognition and measurement Freehold land is stated at cost. All other property and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the assets to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When significant parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. The gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with carrying amount of property and equipment and is recognised at net within “realised gains and losses” respectively in the profit or loss. (ii) Subsequent costs The cost of replacing part of an item of property and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and the Company, and its cost can be measured reliably. The carrying amount of the replaced parts is derecognised to profit or loss. The costs of the day-to-day servicing of property and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

109

110




(c) Property and equipment (continued) (iii) Depreciation (continued) Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property and equipment under construction are not depreciated until the assets are ready for their intended use. The estimated annual depreciation rates for the current and comparative periods are as follows: Buildings Renovation Furniture, fixtures and fittings Motor vehicles Computer and equipment

2.0% 16.7% 16.7% - 20.0% 20.0% 20.0% - 33.3%

The depreciable amount is determined after deducting the residual value. Depreciation methods, useful lives and residual values are reviewed, and adjusted as appropriate at end of the reporting period.

(d) Leased assets (i) Finance lease Leases in terms of which the Group or the Company assume substantially all the risks and rewards of ownership are classified as finance leases. On initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of profit on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. (ii) Operating lease Leases, where the Group or the Company does not assume substantially all the risks and rewards of the ownership are classified as operating leases and, except for property interest held under operating lease, the leased assets are not recognised on the Group or the Company’s statement of financial position. Property interest held under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as investment property. Payments made under operating leases are recognised in the profit or loss on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of the lease. Contingent rentals are charged to profit or loss in the reporting period in which they are incurred.




(d) Leased assets (continued) (ii) Operating lease (continued) Prior to 1 January 2011, a leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee by the end of the lease term is treated as an operating lease. The payment made on entering into or acquiring a leasehold land was accounted for as an operating lease representing prepaid lease payments, except for leasehold land classified as investment property. With effect from 1 January 2011, the Group has adopted the amendment made to FRS 117 in relation to the classification of lease of land. As a result, leasehold land which in substance is a finance lease has been reclassified and measured as such retrospectively.

(e) Investment properties (i) Investment properties carried at fair value Investment properties are properties which are owned or held under a leasehold interest to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of services or for administrative purposes. Investment properties are measured initially at cost and subsequently at fair value with any change therein recognised in the profit or loss for the period in which they arise. Cost includes expenditure that is directly attributable to the acquisition of the investment property. An investment property is derecognised on its disposal, or when it is permanently withdraw from use and no future economic benefit are expected from its disposal. The difference between the net disposal proceeds and the carrying amount is recognised in profit or loss in the period in which the item is derecognised. (ii) Reclassifications to/from investment properties carried at fair value When an item of property and equipment is transferred to investment properties following a change in its use, any difference arising at the date of transfer between the carrying amount of the item immediately prior to transfer and its fair value is recognised directly in equity as a revaluation of property and equipment. However, if a fair value gain reverses a previous impairment loss, the gain is recognised in the profit or loss. Upon disposal of an investment property, any surplus previously recorded in equity is transferred to retained earnings; the transfer is not made through the profit or loss. When the use of a property changes such that it is reclassified as property and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting.

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(e) Investments properties (continued) (iii) Determination of fair value An external, independent valuation firm, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, values the Group’s and the Company’s investment property portfolio annually. The fair value is based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had acted knowledgeably, prudently and, without compulsion.

(f) Financial instruments Arising from the adoption of FRS 139, Financial Instruments: Recognition and Measurement, with effect from 1 January 2011, financial instruments are categorised and measured using accounting policies as mentioned below. Before 1 January 2011, different accounting policies were applied as disclosed in Note 2(h), (i), and (j). Significant changes to the accounting policies are discussed in Note 45. (i) Initial recognition and measurement A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Group and the Company become a party to the contractual provisions of the instrument. A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument. An embedded derivative is recognised separately from the host contract and accounted for as a derivative if, and only if, it is not closely related to the economic characteristics and risks of the host contract and the host contract is not categorised at fair value though profit or loss. The host contract, in the event an embedded derivative is recognised separately, is accounted for in accordance with policy applicable to the nature of the host contract. (ii) Financial instrument categories and subsequent measurement The Group and the Company categorise and measure financial instruments as follows: Financial assets (a) Financial assets at fair value through profit or loss Fair value through profit or loss category comprises financial assets that are held for trading, including derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial assets that are specifically designated into this category upon initial recognition.




(f) Financial instruments (continued) (ii) Financial instrument categories and subsequent measurement (continued) (a) Financial assets at fair value through profit or loss (continued) Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot be reliably measured are measured at cost. Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss. (b) Held-to-maturity investments Held-to-maturity investments category comprises Islamic debt instruments that are quoted in an active market and the Group and the Company have the positive intention and ability to hold them to maturity. Financial assets categorised as held-to-maturity investments are subsequently measured at amortised cost using the effective interest method. (c) Loans and receivables Loans and receivables category comprises Islamic debt instruments that are not quoted in an active market (including fixed deposits with financial institutions with maturities more than 3 months). Financial assets categorised as loans and receivables are subsequently measured at amortised cost using the effective interest method. (d) Available-for-sale financial assets Available-for-sale category comprises investment in equity and Islamic debt securities instruments that are not held for trading nor held to maturity. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost. Other financial assets categorised as available-for-sale are subsequently measured at their fair values with the gain or loss recognised in other comprehensive income, except for impairment losses, foreign exchange gains and losses arising from monetary items and gains and losses of hedged items attributable to hedge risks of fair value hedges which are recognised in profit or loss. On derecognition, the cumulative gain or loss recognised in other comprehensive income is reclassified from equity into profit or loss. Profit income calculated for an Islamic debt instrument using the effective interest method is recognised in profit or loss. (e) Takaful receivables Takaful receivables are recognised when due and measured on initial recognition at the fair value of the consideration received or receivable. Subsequent to initial recognition, takaful receivables are measured at amortised cost, using the effective interest method.

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(f) Financial instruments (continued) (ii) Financial instrument categories and subsequent measurement (continued) (e) Takaful receivables (continued) If there is objective evidence that the takaful receivable is impaired, the Group and the Company reduce the carrying amount of the takaful receivable accordingly and recognises that impairment loss in profit or loss. The Group and the Company gather the objective evidence that a takaful receivable is impaired using the same process adopted for financial assets carried at amortised cost. The impairment loss is calculated under the same method used for those financial assets. These processes are described in Note 2(g). Takaful receivables are derecognised when the derecognition criteria for financial assets, as described in Note 2(f) (iv), have been met. All financial assets, except for those measured at fair value through profit or loss, are subject to review for impairment (see Note 2(g)(i) and (ii)). Financial liabilities All financial liabilities are initially measured at fair value and subsequently measured at amortised cost other than those categorised as fair value through profit or loss. Fair value through profit or loss category comprises financial liabilities that are held for trading, derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial liabilities that are specifically designated into this category upon initial recognition. Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot be reliably measured are measured at cost. Financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss. (iii) Regular way purchase or sale of financial assets A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the market place concerned. A regular way purchase or sale of financial assets is recognised and derecognised, as applicable, using trade date accounting. Trade date accounting refers to: (a) the recognition of an asset to be received and the liability to pay for it on the trade date, and (b) derecognition of an asset that is sold, recognition of any gain or loss on disposal and the recognition of a receivable from the buyer for payment on the trade date.




(f) Financial instruments (continued) (iv) Derecognition A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in the profit or loss. A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the profit or loss.

(g) Impairment (i) Financial assets, excluding takaful receivables All financial assets (except for financial assets categorised as fair value through profit or loss, investments in subsidiaries and investment in associates) are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised. For an equity instrument, a significant or prolonged decline in the fair value below its cost is an objective evidence of impairment. An impairment loss in respect of loans and receivables (including takaful receivables where the policy is set out in Note 2(g)(ii) below) and held-to-maturity investments is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective profit rate. The carrying amount of the asset is reduced through the use of an allowance account. An impairment loss in respect of available-for-sale financial assets is recognised in the profit or loss and is measured as the difference between the asset’s acquisition cost (net of any principal repayment and amortisation) and the asset’s current fair value, less any impairment loss previously recognised. Where a decline in the fair value of an available-for-sale financial asset has been recognised in other comprehensive income, the cumulative loss in other comprehensive income is reclassified from equity to profit or loss. An impairment loss in respect of unquoted equity instrument that is carried at cost is recognised in profit or loss and is measured as the difference between the financial asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Impairment losses recognised in profit or loss for an investment in an equity instrument classified as available-for-sale is not reversed through the profit or loss. If, in a subsequent period, the fair value of an Islamic debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not exceed what the carrying amount would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in the profit or loss.

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(g) Impairment (continued) (ii) Takaful receivables Takaful receivables are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised. Prior to adoption of FRS 139 on 1 January 2011, known doubtful debts are written off and specific allowances are made for takaful receivables as follows: (i) motor contributions which remain outstanding for more than 30 days from the date on which they become receivable; and (ii) non-motor contributions, including agents or reinsurance balances, which remain outstanding for more than six (6) months from the date on which they become receivable. An impairment loss in respect of takaful receivables is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective profit rate. The carrying amount of the asset is reduced through the use of an allowance account. If, in a subsequent period, the fair value of takaful receivables increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not exceed what the carrying amount would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in the profit or loss. The change in the policy for making allowances for takaful receivables did not have any material impact on the financial statements. (iii) Other assets The carrying amounts of other assets (except for deferred tax asset and investment property that is measured at fair value and non-current assets classified as held for sale) are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or group of assets (the “cashgenerating unit”). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.




(g) Impairment (continued) (iii) Other assets (continued) Impairment losses are recognised in the profit or loss. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groups of units) on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at the end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognised.

(h) Investments Prior to 1 January 2011, investments are recognised initially at purchase price plus attributable transaction costs. Subsequent to initial recognition: •

Investments in Government Islamic Papers (Government Investment Issues and other Islamic instruments issued by the Government or Bank Negara Malaysia (“BNM”)), Malaysian Government Securities, Islamic debt securities and other investments as specified by BNM and held to maturity are stated at cost adjusted for amortisation of premiums or accretion of discounts, calculated on a constant yield basis, from the date of purchase to maturity date. The amortisation of premiums and accretion of discounts are recognised in the revenue accounts / income statements.

•

Quoted investments are stated at the lower of cost and market value determined on an aggregate portfolio basis by category of investments except that if diminution in value of a particular investment is not regarded as temporary, provision is made against the value of that quoted investment.

• All other unquoted investments are stated at the lower of cost and net realisable value. •

Investments in quoted shares, unit trusts, and Islamic debt securities of Investment-linked businesses are stated at the closing market prices.

• Unquoted Islamic debts securities and investment in commodity, equity and fixed income closed end fund of the Investment-linked funds are stated at the prevailing prices quoted by independent financial institutions. Any increase or decrease in value of these investments is taken into the investment-linked business revenue accounts. Allowance for diminution in value of investments are charged directly to the revenue accounts of the takaful funds and to the income statements. Subsequent increase in market value of the quoted investment is treated as a write back of the previous allowance for diminution in value of investments to the extent of the carrying amount of the quoted investments that would have been determined had no diminution in value had been recognised. On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in the revenue accounts / income statements.

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(h) Investments (continued) All investments in Islamic debt and equity securities are accounted for using settlement date accounting. Settlement date accounting refers to: a) the recognition of an asset on the day it is received by the entity, and b) the derecognition on an asset and recognition of any gain or loss on disposal on the date it is delivered.

(i) Financing receivables Prior to 1 January 2011, financing receivables are initially recognised at their cost when the contractual right to receive cash or another financial asset from another entity is established. Financing receivables are not held for the purpose of trading. Subsequent to initial recognition, financing receivables are stated at cost less allowance for doubtful debts. Known bad debts are written off and specific provisions is made for any financing, which remains outstanding for more than six months from the date on which they became payable, and for all debts which are considered doubtful. Following the adoption of FRS 139, financing receivables are categorised and measured as loans and receivables in accordance with Note 2(f)(ii)(c).

(j) Receivables Prior to 1 January 2011, receivables are initially recognised at their cost when the contractual right to receive cash or another financial asset from another entity is established. Receivables are not held for the purpose of trading. Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts. Known bad debts are written off and specific allowance for doubtful debts is made as follows: a) Motor contributions which remain outstanding for more than 30 days. b) Non-motor contributions including agents and reinsurance balances, which remain outstanding for more than six months. Following the adoption of FRS 139, financing receivables are categorised and measured as loans and receivables in accordance with Note 2(f)(ii)(c).

(k) Non-current assets held for sale Non-current assets, or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group, are remeasured in accordance with the Group’s accounting policies. Thereafter, generally the assets, or disposal group are measured at the lower of their carrying amount and fair value less cost to sell.



2. Summary of sinificant accounting policies (continued)

(k) Non-current assets held for sale (continued) Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to financial assets, deferred tax assets and investment property, which continue to be measured in accordance with the Group’s accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in the profit or loss. Gains are not recognised in excess of any cumulative impairment loss. Intangible assets and property and equipment once classified as held for sale are not amortised or depreciated. In addition, equity accounting of equity accounted investees ceases once classified as held for sale.

(l) Cash and cash equivalents and placements with financial institutions Cash and cash equivalents consist of cash in hand, balances and deposits with banks and highly liquid investments which have an insignificant risk of changes in value with original maturities of three months or less.

(m) Employee benefits (i) Short term employee benefits Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. (ii) State plans The Group’s contribution to the statutory pension fund is charged to the profit or loss in the year to which they relate. Once the contributions have been paid, the Group has no further payment obligations.

(n) Provisions A provision is recognised if, as a result of a past event, the Group and the Company have a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.

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(o) Payables Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractual obligation to deliver cash or another financial asset to another entity. Following the adoption of FRS 139, trade and other payables are categorised and measured as financial liabilities in accordance with Note 2(f)(ii).

(p) General Takaful Fund The General Takaful Fund is maintained in accordance with the Takaful Act, 1984 (amendment). Included in General Takaful Fund is fund arising from: • •

General Takaful; and General retakaful funds.

The General Takaful underwriting results are determined for each class of takaful business after taking into account retakaful, unearned contributions, claims incurred and administrative fees. Contribution income Contributions are recognised in a financial period in respect of risks assumed during that particular financial period based on the inception date. Inward treaty retakaful contributions are recognised on the basis of periodic advices received from ceding takaful operators. Unearned contribution reserves The Unearned Contribution Reserves (“UCR”) represent the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period/year. In determining the UCR at the end of the reporting period, the method that most accurately reflects the actual unearned contributions is used, as follows: a) 1/365th method for all General Takaful business within Malaysia. b) 1/8th method for all classes of General Treaty Inward Retakaful business. Provision for outstanding claims A liability for outstanding claims is recognised in respect of direct takaful business. The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries, if any, to settle the present obligation at the end of the reporting period. Any difference between the current estimated cost and subsequent settlement is dealt with in the takaful statement of comprehensive income for the Group and the Company in the year in which the settlement takes place.




(p) General Takaful Fund (continued) Provision for outstanding claims (continued) Provision is also made for the cost of claims (together with related expenses) and IBNR at the end of the reporting period, using a mathematical method of estimation by a qualified external actuary where historical claims experience are used to project future claims. The provision includes a risk margin for adverse deviation. As with all projections, there are elements of uncertainty and the projected claims may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions.

(q) Family Takaful Fund Included in Family Takaful Fund is fund arising from:• Family Takaful; • Group Family Takaful; and • Family retakaful funds. The Family Takaful Fund is maintained in accordance with the requirements of the Takaful (Amendment) Act, 1984 and includes the amounts attributable to participants which represents the participants’ share of the underwriting surplus and return on the investments, where applicable and are distributable in accordance with the terms and conditions prescribed by the Group and the Company. The surplus transfer from the Family Takaful Fund to the statement of comprehensive income is based on the predetermined profit sharing ratio of the underwriting surplus and return on investments. Contribution income Contribution is recognised as soon as the amount of the contribution can be reliably measured. Initial contribution is recognised from inception date and subsequent contribution is recognised when it is due. For individual family takaful contribution, recognition is up to the extent of one due amount. At the end of each financial period, all due contributions are accounted for to the extent that they can be reliably measured. Investment-linked business Investments of the investment-linked business are stated at closing market prices. Any increase or decrease in value of these investments is taken into the investment-linked business revenue accounts.

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(q) Family Takaful Fund (continued) Actuarial reserves Actuarial reserves comprise the unearned contribution reserves and the reserve computed under the net contribution valuation as explained below : (i) Unearned contribution reserve The Unearned Contribution Reserve (UCR) of group family fund (except for Mortgage Reducing Term Takaful (MRTT) as detailed below) and family retakaful fund represents the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period/year. In determining the UCR at the end of the reporting period, the method that most accurately reflects the actual unearned contributions is used, as follows: a) 1/365th method for all group family takaful business within Malaysia. b) A pro-rata basis based on a time apportionment method for family retakaful business. (ii) Net contribution valuation The actuarial liabilities for MRTT products managed under group family fund and Ordinary Participants’ Special Account (PSA) are calculated using the net contribution method of valuation (NCV). The liability is ascertained by deducting the present value of future net contribution from the present value of the future amount-at-risk. As with all projections, there are elements of uncertainty and the projected liability may be different from actual. These uncertainties arise from changes in underlying risks, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions. Provision for wakalah fee (i) Investment-Linked products Provision is made to recognise future expected losses to the Shareholders’ Fund, if any, arising from servicing of individual certificate contracts with participants. Provision is estimated based on the methodology stated in the Guidelines on Investment Linked Insurance/Takaful Business (BNM/RH/GL 010-15) issued by Bank Negara Malaysia where best estimated cash flows are discounted to ensure that there are no negative net cash flows arising in the future in the Shareholders’ Fund. The best estimate assumptions used are consistent with that used in the valuation of the Investment Linked Risk Fund. (ii) Single Contribution Wakalah Plans (Mortgage and Group Credit Wakalah) Provision is estimated based on actuarial present value of future maintenance expense. The assumptions used in calculating the provision are best estimate assumptions.




(q) Family Takaful Fund (continued) Provision for outstanding claims Claims and provisions for claims arising on family and group family takaful certificates, including settlement costs, are accounted for using the case basis method and for this purpose, the benefits payable under a family takaful certificate are recognised as follows: a) Maturity or other policy benefit payments due on specified dates are accounted for as claims payable on the due dates. b) Death, surrender and other benefits without due dates are treated as claims payable on the date of receipts of intimation of death of the participant or occurrence of contingency covered. c) For individual family, group health and medical business, provision is made for the cost of claims (together with related expenses) and IBNR at the end of the reporting period, using a mathematical method of estimation by a qualified internal actuary where historical claims experience are used to project future claims. The provision includes a risk margin for adverse deviation. As with all projections, there are elements of uncertainty and the projected claims may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claim settlement pattern as well as uncertainties in the projection model and underlying assumptions.

(r) Product classification The Family Takaful Fund and General Takaful Fund consist of certificate contracts that transfer takaful risk. Takaful contracts are those contracts that transfer significant takaful risk. A takaful contract is a contract under which the fund has accepted significant takaful risk from another party (the certificate holders) by agreeing to compensate the participants if a specified uncertain future event (the takaful event) adversely affects the participants. As a general guideline, to determine whether a contract has significant takaful risk, benefits paid are compared with benefits payable if the takaful event did not occur. Investment contracts are those contracts that do not transfer significant insurance risk. There are no contracts that are classified as investment contracts in the Family and General Takaful Funds. Once a contract has been classified as a takaful contract, it remains a takaful contract for the remainder of its life-time, even if the takaful risk reduces significantly during this period, unless all rights and obligations are extinguished or expired. Takaful contracts in the current portfolio are classified as being without discretionary participation features (“DPF”) as it does not satisfy the criteria for DPF. DPF is a contractual right to receive, as a supplement to guaranteed benefits, additional benefits that are: • • •

likely to be a significant portion of the total contractual benefits; whose amount or timing is contractually at the discretion of the issuer; and that are contractually based on the: - performance of a specified pool of contracts or a specified type of contract; - realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or - the profit or loss of the company, fund or other entity that issues the contract.

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(s) Retakaful The fund cedes takaful risk in the normal course of business. Retakaful assets represent balances receivable and recoverable from retakaful operators. Amounts recoverable from retakaful operators are estimated in a manner consistent with the outstanding claims provision or settled claims associated with the retakaful’s certificates and are in accordance with the related retakaful contracts. Ceded retakaful arrangements do not relieve the fund from its obligations to participants. Contributions and claims are presented on a gross basis for both ceded and assumed retakaful. Retakaful assets are reviewed for impairment at each reporting date or more frequently when an indication of impairment arises during the reporting period. Impairment occurs when there is objective evidence as a result of an event that occurred after initial recognition of the retakaful asset that the Family and General Takaful Fund may not receive all outstanding amounts due under the terms of the contract and the event has a reliably measurable impact on the amounts that the Family and General Takaful Fund will receive from the retakaful operator. The impairment loss is recorded in profit or loss. Gains or losses on buying retakaful, if any, are recognised in profit or loss immediately at the date of purchase and are not amortised. The fund also assumes retakaful risk in the normal course of business for Family Takaful and General Takaful contracts when applicable. Contributions and claims on assumed retakaful are recognised as revenue or expenses in the same manner as they would be if the retakaful were considered direct business, taking into account the product classification of the retakaful business. Retakaful liabilities represent balances due to retakaful operators. Amounts payable are estimated in a manner consistent with the related retakaful contract. Retakaful assets or liabilities are derecognised when the contractual rights are extinguished or expired or when the contract is transferred to another party. Retakaful contracts that do not transfer significant takaful risk are accounted for directly through the statement of financial position. These are deposit assets or financial liabilities that are recognised based on the consideration paid or received less any explicit identified contributions or fees to be retained by the retakaful operators. Investment income on these contracts is accounted for using the effective yield method.

(t) Other revenue recognition (i) Financing income Incomes from financing are recognised on an accrual basis, except where financing is considered impaired, i.e. where repayments are in arrears for more than 90 days, in which case recognition of such income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid. Income is recognised on a time proportion basis that takes into account the effective yield of the asset.




(t) Other revenue recognition (continued) (ii) Wakalah fees Wakalah fees are recognised as income or expenses by the respective funds based on a predetermined percentage of gross contributions upon inception of certificates. Wakalah surplus/(deficit) is arrived at after deducting commission and management expenses against the Wakalah fees charged. (iii) Rental income Rental is recognised on an accrual basis except where default in payment of rent has already occurred and rent dues remain outstanding for over 90 days, in which case recognition of rental income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid. (iv) Dividend income Dividend is recognised when the right to receive payment is established.

(u) Zakat This represents tithes payable by the Group and the Company to comply with the Principles of Shariah and as approved by the Shariah Advisory Body.

(v) Tax expense Tax expense comprises current and deferred tax. Current and deferred tax is recognised in the profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantially enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities in the statement of financial position and their tax bases. Deferred tax is not recognised for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

125

126




(w) Operating lease payments The Group recognises its Ijarah financing obligations as operating leases. Lease payments under the operating lease are recognised as an expense in the income statements on a straight-line basis over the lease term.

(x) Earnings per share The Group presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held. No diluted EPS is disclosed in these financial statements as there are no dilutive potential ordinary shares.

(y) Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. An operating segment’s operating results are reviewed regularly by the chief operating decision maker, which in this case is the Chief Executive Officer of the Group, to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.



3. Property and equipment

Shareholders’ Fund Office Renovation equipment, Leasehold and furniture, Group Freehold lands and building in Motor fixtures and Land Buildings buildings progress vehicles fittings Total Cost RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 July 2009 Reclassification from prepaid lease payment on FRS 117 adoption

1,660

7,895

-

-

1,388

91,275

102,218

-

-

4,108

-

-

-

4,108

At 1 July 2009, restated Additions Disposals Write offs Effect of movement in exchange rates

1,660 - - -

7,895 35 - -

4,108 - - -

- 222 - -

1,388 385 (111) -

91,275 7,306 (865) (2,739)

106,326 7,948 (976) (2,739)

-

(27)

(14)

-

(17)

(302)

(360)

1,660 - - -

7,903 208 - -

4,094 - - -

222 - - -

1,645 136 (323) -

94,675 12,811 (95) (1,468)

110,199 13,155 (418) (1,468)

-

(720)

(422)

-

-

-

(1,142)

(1,660) -

(1,781) -

(1,194) -

- (222)

- -

- 222

(4,635) -

-

39

21

-

11

128

199

-

5,649

2,499

-

1,469

106,273

115,890

At 31 December 2010/ 1 January 2011, restated Additions Disposals Write offs Reclassification to investment properties (Note 4): - Offset of accumulated depreciation - Reclassification of carrying amount Transfers Effect of movement in exchange rates At 31 December 2011

127

128



3. Property and equipment (continued)

Shareholders’ Fund (continued) Office Renovation equipment, Group Leasehold and furniture, Freehold lands and building in Motor fixtures and Accumulated Land Buildings buildings progress vehicles fittings Total depreciation RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 July 2009 Reclassification from prepaid lease payment on FRS 117 adoption

-

1,488

-

-

915

67,359

69,762

-

-

817

-

-

-

817

At 1 July 2009, restated Charge for the period Disposals Write offs Effect of movement in exchange rates

- - - -

1,488 357 - -

817 400 - -

- - - -

915 271 (111) -

67,359 12,679 (856) (2,704)

70,579 13,707 (967) (2,704)

-

(12)

(14)

-

(13)

(274)

(313)

- - - -

1,833 156 - -

1,203 120 - -

- - - -

1,062 106 (221) -

76,204 10,219 (88) (1,432)

80,302 10,601 (309) (1,432)

-

(720)

(422)

-

-

-

(1,142)

-

8

5

-

8

108

129

-

1,277

906

-

955

85,011

88,149

At 31 December 2010/ 1 January 2011, restated Charge for the year Disposals Write offs Offset of accumulated depreciation on property reclassified to investment properties Effect of movement in exchange rates At 31 December 2011




Shareholders’ Fund (continued) Office Renovation equipment, Group Leasehold and furniture, Freehold lands and building in Motor fixtures and Land Buildings buildings progress vehicles fittings Total Carrying amounts RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 July 2009, restated

1,660

6,407

3,291

-

473

23,916

35,747

At 31 December 2010/ 1 January 2011, restated

1,660

6,070

2,891

222

583

18,471

29,897

-

4,372

1,593

-

514

21,262

27,741

1,660

3,417

-

-

447

80,909

86,433

-

-

1,616

-

-

-

1,616

At 1 July 2009, restated Additions Disposals Write offs

1,660 - - -

3,417 - - -

1,616 - - -

- 222 - -

447 170 - -

80,909 6,169 (865) (2,739)

88,049 6,561 (865) (2,739)

At 31 December 2010 (restated)

1,660

3,417

1,616

222

617

83,474

91,006

At 31 December 2011 Company Cost At 1 July 2009 Reclassification from prepaid lease payment on FRS 117 adoption

129

130




Shareholders’ Fund (continued) Office Renovation equipment, Company Leasehold and furniture, Freehold lands and building in Motor fixtures and Land Buildings buildings progress vehicles fittings Total Cost RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2011 (restated) Additions Disposals Write offs Reclassification to investment properties (Note 4): - Offset of accumulated depreciation - Reclassification of carrying amount Transfers

1,660 - - -

3,417 - - -

1,616 - - -

222 - - -

617 - (95) -

83,474 11,992 (86) (1,468)

91,006 11,992 (181) (1,468)

-

(720)

(422)

-

-

-

(1,142)

(1,660) -

(1,781) -

(1,194) -

- (222)

- -

- 222

(4,635) -

-

916

-

-

522

94,134

95,572

At 1 July 2009 Reclassification from prepaid lease payment on FRS 117 adoption

-

871

-

-

268

58,426

59,565

-

-

375

-

-

-

375

At 1 July 2009, restated Charge for the period Disposals Write offs

- - - -

871 102 - -

375 45 - -

- - - -

268 121 - -

58,426 11,720 (856) (2,708)

59,940 11,988 (856) (2,708)

At 31 December 2010 (restated)

-

973

420

-

389

66,582

68,364

At 31 December 2011 Accumulated depreciation




Shareholders’ Fund (continued) Office Renovation equipment, Company Leasehold and furniture, Freehold lands and building in Motor fixtures and Accumulated Land Buildings buildings progress vehicles fittings Total depreciation RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2011 (restated) Charge for the year Disposals Write offs Offset of accumulated depreciation on property reclassified to investment properties

- - - -

973 17 - -

420 2 - -

- - - -

389 80 (81) -

66,582 9,320 (84) (1,432)

68,364 9,419 (165) (1,432)

-

(720)

(422)

-

-

-

(1,142)

At 31 December 2011

-

270

-

-

388

74,386

75,044

At 1 July 2009, restated

1,660

2,546

1,241

-

179

22,483

28,109

At 31 December 2010/ 1 January 2011, restated

1,660

2,444

1,196

222

228

16,892

22,642

-

646

-

-

134

19,748

20,528

Carrying amounts

At 31 December 2011

131

132




3.1 Leasehold lands and buildings

Included in the carrying amounts of the leasehold lands and buildings are: Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Leasehold lands and buildings with unexpired lease period of - more than 50 years - less than 50 years

- 1,593

1,196 1,695

- -

1,196 -

1,593

2,891

-

1,196

4. Investment properties

Shareholders’ Fund Family Takaful General Takaful 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2011/ 1 July 2009 - Additions - Disposals - Reclassified from/(to) assets held for sale (Note 16) - Reclassified from property and equipment (Note 3) - Transfers - Fair value (loss)/gain for the year/period - net (Note 29) - Effect of movement in exchange rates At 31 December

11,958 - -

11,156 - -

206,980 5,092 (4,000)

204,983 - (206)

29,234 443 (3,700)

28,954 -

-

1,471

(668)

-

-

-

4,635 707

- -

- (707)

- -

- -

-

1,460

(668)

3,839

2,254

643

280

(2)

(1)

83

(51)

-

-

18,758

11,958

210,619

206,980

26,620

29,234



4. Investment properties (continued)

Shareholders’ Fund Family Takaful General Takaful 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Comprising of: Freehold lands and buildings Leasehold lands and buildings more than 50 years Leasehold lands and buildings less than 50 years

Company At 1 January 2011/ 1 July 2009 - Additions - Disposals - Reclassified from/(to) assets held for sale (Note 16) - Reclassified from property and equipment (Note 3) - Fair value (loss)/gain for the year/period - net (Note 29) At 31 December

Comprising of: Freehold lands and buildings Leasehold lands and buildings more than 50 years Leasehold lands and buildings less than 50 years

9,637

5,305

176,944

173,031

14,430

17,354

8,510

6,515

25,815

25,425

5,490

5,280

611

138

7,860

8,524

6,700

6,600

18,758

11,958

210,619

206,980

26,620

29,234

11,665 - -

10,865 - -

198,172 5,092 (4,000)

196,097 - -

29,234 443 (3,700)

28,954 -

-

1,471

(668)

-

-

-

4,635

-

-

-

-

-

1,450

(671)

3,839

2,075

643

280

17,750

11,665

202,435

198,172

26,620

29,234

9,240

5,150

172,200

168,697

14,430

17,354

8,510

6,515

25,815

25,425

5,490

5,280

-

-

4,420

4,050

6,700

6,600

17,750

11,665

202,435

198,172

26,620

29,234

133

134




The following are amounts arising from investment properties that have been recognised in profit or loss/revenue accounts during the financial year/period. Shareholders’ Fund Family Takaful General Takaful 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Rental income

27

844

649

10,067

16,312

1,144

1,747

Company Rental income

27

815

643

9,398

15,511

1,144

1,747

Investment properties comprise a number of commercial properties that are leased to third parties. During the year, three properties have been transferred from property and equipment (see Note 3) to investment properties, since the buildings were no longer used by the Group and the Company and are now leased to third parties. The Group’s investment properties were valued by independent professional valuer firms, using the comparison, cost and investment methods of valuations, where applicable. In the comparison method approach, the sales and listings of comparable properties of within nearby locations are compiled. From the compiled data, adjustments are made by the valuers between the subject property and those similar properties. The adjustments made are in relation to location, size and shape of the lot, physical features, legal and legislative constraints, building design and condition, time element, planning provision, improvements and renovation works made, if any, surrounding developments, facilities and amenities available and other factors that may affect the value of the subject property. These adjustments are therefore subject to uncertainties such as property market outlook, potential increases in rental rates and general economic conditions. In the cost method approach, the indication of values consists of the sum of the present worth of the improvement value. For the valuation of the improvements, the valuers have considered the following: i)

Cost of replacement of the building in accordance with current trend of market prices for materials, labour, contractor’s overhead, profit and fees;

ii) Accrued depreciation as evidenced by the observed condition and present and prospective serviceability in comparison with new units of like kind; and iii) Extent, character and utility of the property. The investment method is the capitalisation of net rent from a property. Net rent is the residue of gross annual rent less annual expenses (outgoings) required to sustain the rent with allowance for void and management fees. The external valuers have considered the results of all these three methods in their valuation and applied professional judgement in the selection of the fair value of these investment properties.




During the year, the external valuers performed an update valuation of market value of these investment properties in arriving at the fair value, after considering the properties’ existing condition. 5. Investment in subsidiaries

Shareholders’ Fund 31.12.2011 31.12.2010 Company RM’000 RM’000 At cost Unquoted shares Less: Accumulated impairment losses

80,759 (17,030)

80,759 (10,012)

63,729

70,747

Details of the subsidiaries are as follows: Effective Country of ownership interest Name of subsidiaries Principal activities incorporation 31.12.2011 31.12.2010 Asean Retakaful International Family and general (L) Ltd. (“ARIL”)** retakaful business

Malaysia

63.09%

63.09%

P.T. Syarikat Takaful Indonesia* and its subsidiaries

Investment holding

Indonesia

56.00%

56.00%

P.T. Asuransi Takaful Umum*

General takaful business

Indonesia

64.70%

64.70%

P.T. Asuransi Takaful Keluarga*

Family takaful business

Indonesia

74.80%

74.80%

* Not audited by KPMG Desa Megat & Co ** Audited by a firm affiliated with KPMG Desa Megat & Co

6. Investment in associate

Investment in associate company amounting to RM2,473,000 (2010: RM2,473,000) was fully written down during the financial year ended 30 June 2007.

135

136



7. Investments

(a) Shareholders’ Fund 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Group RM’000 RM’000 RM’000 RM’000 Quoted: Shares - In Malaysia

-

-

34,876

Unit trusts - In Malaysia - Outside Malaysia

- -

42,695 5,814

-

-

48,509

Unquoted: Shares - In Malaysia - Outside Malaysia

- -

380 46

-

-

426

Islamic debt securities - In Malaysia - Outside Malaysia Amortisation of premiums

- - -

42,856 2,916 (347)

-

-

45,425

46,223

Units in Investment-linked Funds

-

-

32,954

36,860

Deposits and money market placement with: Licensed banks - Local - Foreign

- -

167,591 32,303

-

-

199,894

-

Total investments

-

-

362,084

-

Investments maturing more than twelve months

-

-

45,253

-

39,017

49,823

-



7. Investments (continued)

(a) Shareholders’ Fund (continued) 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Company RM’000 RM’000 RM’000 RM’000 Quoted: Shares - In Malaysia

-

-

34,876

39,017

Unit Trust - In Malaysia

-

-

42,695

43,813

Unquoted: Shares - In Malaysia

-

-

380

-

Islamic debt securities Amortisation of premiums

- -

42,856 (347)

-

-

42,509

43,307

Units in Investment-linked Funds

-

-

32,954

36,860

Deposits and money market placement with: Licensed banks

-

-

139,848

-

Total investments

-

-

293,262

-


-

-

42,509

-

137

138



7. Investments (continued) (b) Family Takaful Fund 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Group RM’000 RM’000 RM’000 RM’000 Quoted: Shares - In Malaysia - Outside Malaysia

- -

272,814 74

-

-

272,888

Unit trusts - In Malaysia - Outside Malaysia Allowance for diminution

- - -

163,048 26,835 (1,037)

-

-

188,846

Unquoted: Malaysian Government Islamic papers Amortisation of premium Allowance for diminution

- - -

571,670 (528) -

-

-

571,142

578,828

Shares - In Malaysia

-

-

135

-

Islamic debt securities - In Malaysia - Outside Malaysia Accretion of discounts

- - -

1,493,870 56,319 12,378

-

-

1,562,567


- -

484,773 84,104

-

-

568,877

-

Total investments

-

-

3,164,455

-


-

-

2,117,472

-

292,582

189,916

1,646,815



7. Investments (continued) (b) Family Takaful Fund (continued) 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Company RM’000 RM’000 RM’000 RM’000 Quoted: Shares - In Malaysia

-

-

272,814

292,478

Unit trusts - In Malaysia

-

-

163,048

164,118

Unquoted: Malaysian Government Islamic papers Amortisation of premium

- -

571,670 (528)

-

-

571,142

578,828

Shares - In Malaysia

-

-

135

-

Islamic debt securities Amortisation of discount

- -

1,493,870 12,411

-

-

1,506,281

1,588,889


-

-

484,773

-

Total investments

-

-

2,998,193

-


-

-

2,067,089

-

139

140



7. Investments (continued) (c) Investment-linked Fund 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Group RM’000 RM’000 RM’000 RM’000 Quoted: Shares - In Malaysia Unrealised gain

- -

23,262 3,222

-

-

26,484

Unit Trust - Outside Malaysia Unrealised gain

- -

45,535 11,333

-

-

56,868

Unquoted: Islamic debt securities - In Malaysia - Outside Malaysia Unrealised gain

- - -

13,744 7,545 282

-

-

21,571

Investment in commodity, equity and fixed income closed end fund Unrealised gain

- -

75,210 4,439

-

-

79,649


- -

6,974 2,315

-

-

9,289

-

Total investments

-

-

193,861

-

26,484

56,868

21,571

79,649



7. Investments (continued) (c) Investment-linked Fund (continued) 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Company RM’000 RM’000 RM’000 RM’000 Quoted: Shares in Malaysia Unrealised gain

- -

23,262 3,222

-

-

26,484

Unquoted: Islamic debt securities Unrealised gain

- -

13,744 294

-

-

14,038

Investment in commodity, equity and fixed income closed end fund Unrealised gain

- -

75,210 4,439

-

-

79,649

79,649


-

-

6,974

-

Total investments

-

-

127,145

-

26,484

14,038

141

142



7. Investments (continued) (d) General Takaful Fund 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Group RM’000 RM’000 RM’000 RM’000 Quoted: Shares - In Malaysia

-

-

52,152

Unit trusts - In Malaysia - Outside Malaysia

- -

33,156 909

-

-

34,065

34,887


-

-

89

-

Malaysian Government Islamic papers Amortisation of premium

- -

120,045 (278)

-

-

119,767

Islamic debt securities - In Malaysia - Outside Malaysia Accretion of discounts

- - -

245,452 1,715 2,310

-

-

249,477


- -

157,548 17,491

-

-

175,039

-

Total investments

-

-

630,589

-


-

-

358,876

-

59,232

121,301

258,832



7. Investments (continued) (d) General Takaful Fund (continued) 31.12.2011 31.12.2010 Cost/ Market Value/ Cost/ Market Value/ Valuation Fair Value Valuation Fair Value Company RM’000 RM’000 RM’000 RM’000 Quoted: Shares - In Malaysia

-

-

52,152

59,232

Unit trusts - In Malaysia

-

-

33,156

33,882


-

-

89

-

Malaysian Government Islamic papers Amortisation of premium

- -

120,045 (278)

-

-

119,767

Islamic debt securities Accretion of discounts

- -

245,452 2,310

-

-

247,762

257,117


-

-

157,548

-

Total investments

-

-

610,474

-


-

-

357,161

-

121,301

143

144



8. Financing receivables Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Shareholders’ Fund Note RM’000 RM’000 RM’000 RM’000 Secured financing Staff financing Allowance for doubtful financing 41.4

- - -

2,653 14,708 (2,923)

- - -

2,310 10,617 (2,644)

Total financing

-

14,438

-

10,283

Amount receivable after twelve months

-

14,412

-

10,268

Secured financing Allowance for doubtful financing 41.4

- -

75,362 (2,986)

- -

75,362 (2,986)

Total financing

-

72,376

-

72,376


-

72,376

-

72,376

Secured financing Unsecured financing Allowance for doubtful financing 41.4

- - -

4,386 5,000 (3,066)

- - -

4,386 5,000 (3,066)

Total financing

-

6,320

-

6,320


-

6,320

-

6,320

Family Takaful Fund

General Takaful Fund



9. Other investments The other investments comprise the following: Shareholders’ Family Investment General Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Group Available-for-sale Fair value through profit or loss Held-to-maturity

264,293 - 4,152

2,554,428 - 270,931

- 174,392 -

473,623 - 34,496

3,292,344 174,392 309,579

268,445

2,825,359

174,392

508,119

3,776,315

Available-for-sale Fair value through profit or loss Held-to-maturity

255,631 - -

2,475,921 - 241,904

- 108,913 -

472,609 - 32,766

3,204,161 108,913 274,670

255,631

2,717,825

108,913

505,375

3,587,744

Company

(a) Available-for-sale (AFS) financial assets Shareholders’ Family Investment General At fair value Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Group Equity securities - Quoted in Malaysia - Quoted outside Malaysia - Unquoted in Malaysia - Unquoted outside Malaysia

36,572 535 380 47

316,651 415 - -

- - - -

57,410 - - -

410,633 950 380 47

37,534

317,066

-

57,410

412,010

Unit trusts - Quoted in Malaysia - Quoted outside Malaysia - Unquoted in Malaysia

12,934 5,214 48,726

18,730 48,826 174,649

- - -

5,047 1,014 33,711

36,711 55,054 257,086

66,874

242,205

-

39,772

348,851

Malaysian Government Islamic papers

10,291

492,315

-

89,100

591,706

145

146



9. Other investments (continued) (a) Available-for-sale (AFS) financial assets (continued) Shareholders’ Family Investment General At fair value Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Group Islamic debt securities: - Unquoted outside Malaysia - Unquoted in Malaysia

2,866 108,506

29,266 1,473,576

- -

- 287,341

32,132 1,869,423

111,372

1,502,842

-

287,341

1,901,555

Investment in linked funds

38,222

-

-

-

38,222

Total AFS financial assets

264,293

2,554,428

-

473,623

3,292,344

Equity securities - Quoted in Malaysia - Unquoted in Malaysia

36,572 380

316,651 -

- -

57,410 -

410,633 380

36,952

316,651

-

57,410

411,013

Unit trusts - Quoted in Malaysia - Unquoted in Malaysia

12,934 48,726

18,730 174,649

- -

5,047 33,711

36,711 257,086

61,660

193,379

-

38,758

293,797


10,291

492,315

-

89,100

591,706

Islamic debt securities: - Unquoted in Malaysia

108,506

1,473,576

-

287,341

1,869,423

Investment in linked funds

38,222

-

-

-

38,222

Total AFS financial assets

255,631

2,475,921

-

472,609

3,204,161

Company



9. Other investments (continued) (b) Fair value through profit or loss (FVTPL) financial assets Shareholders’ Family Investment General At fair value Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Group Equity securities - Quoted in Malaysia - Quoted outside Malaysia

- -

- -

29,747 31,251

- -

29,747 31,251

-

-

60,998

-

60,998

Investment units in commodity, equity and fixed income closed end fund - Unquoted in Malaysia

-

-

63,906

-

63,906

Unit trusts - Quoted outside Malaysia

-

-

25,971

-

25,971

Islamic debt securities: - Unquoted in Malaysia - Unquoted outside Malaysia

- -

- -

15,260 8,257

- -

15,260 8,257

-

-

23,517

-

23,517

Total FVTPL financial assets

-

-

174,392

-

174,392

Equity securities - Quoted in Malaysia

-

-

29,747

-

29,747

Investment units in commodity, equity and fixed income closed end fund - Unquoted in Malaysia

-

-

63,906

-

63,906

Islamic debt securities: - Unquoted in Malaysia

-

-

15,260

-

15,260

Total FVTPL financial assets

-

-

108,913

-

108,913

Company

147

148



9. Other investments (continued) (c) Held-to-maturity (HTM) financial assets Shareholders’ Family Investment General Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Group At amortised cost Islamic debt securities: - Unquoted in Malaysia - Unquoted outside Malaysia Malaysian Government Islamic papers

- 4,152

129,061 29,027

- -

- 1,730

129,061 34,909

-

112,843

-

32,766

145,609

Total HTM financial assets

4,152

270,931

-

34,496

309,579

At fair value Islamic debt securities: - Unquoted in Malaysia - Unquoted outside Malaysia Malaysian Government Islamic papers

- 4,165

138,988 28,579

- -

- 1,730

138,988 34,474

-

114,631

-

33,279

147,910


4,165

282,198

-

35,009

321,372

Company At amortised cost Islamic debt securities: - Unquoted in Malaysia Malaysian Government Islamic papers

-

129,061

-

-

129,061

-

112,843

-

32,766

145,609


-

241,904

-

32,766

274,670

At fair value Islamic debt securities: - Unquoted in Malaysia

-

138,988

-

-

138,988


-

114,631

-

33,279

147,910


-

253,619

-

33,279

286,898



9. Other investments (continued) (d) Carrying values of financial instruments AFS FVTPL HTM Total Group Note RM’000 RM’000 RM’000 RM’000 At 1 January 2011 Effect on adoption of FRS 139 45.2

2,919,173 134,167

184,571 -

296,106 -

3,399,850 134,167

At 1 January 2011, restated Purchases Maturities Disposals Dividend income capitalised Fair value gains/(losses) recorded in: Profit or loss Other comprehensive income Participants’ fund Allowance for impairment in financial assets Amortisation of premiums, net of accretion of discounts Effect of movement in exchange rates

3,053,340 1,894,490 (44,769) (1,605,514) 9,467

184,571 22,663 - (41,571) -

296,106 143,811 (130,405) - -

3,534,017 2,060,964 (175,174) (1,647,085) 9,467

- 8,170 - (3,514) - - (3,915)

8,170 (3,514) (3,915)

(8,250)

-

-

(8,250)

1,780 (771)

- 559

(23) 90

1,757 (122)

At 31 December 2011

3,292,344

174,392

309,579

3,776,315

At 1 January 2011 Effect on adoption of FRS 139 45.2

2,845,044 131,568

120,170 -

274,714 -

3,239,928 131,568

At 1 January 2011, restated Purchases Maturities Disposals Dividend income capitalised Fair value gains/(losses) recorded in: Profit or loss Other comprehensive income Participants’ fund Allowance for impairment in financial assets Amortisation of premiums, net of accretion of discounts

2,976,612 1,793,727 (44,769) (1,519,861) 9,467

120,170 22,144 - (38,955) -

274,714 - (5) - -

3,371,496 1,815,871 (44,774) (1,558,816) 9,467

- 5,554 - (3,445) - - (1,100)

5,554 (3,445) (1,100)

(8,250)

-

-

(8,250)

1,780

-

(39)

1,741

At 31 December 2011

3,204,161

108,913

274,670

3,587,744

Company

149

150



9. Other investments (continued) (e) Fair values of financial investments Quoted market prices category are financial instruments that are measured in whole or in part by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange and published market price from print medias. Market observable financial instruments are measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions and are instruments for which pricing is obtained from Bond Pricing Agency Malaysia and regulatory agency. The fair value of investments in structured products are obtained via investments bankers and/or fund managers. Non market observable inputs means that fair values are determined in whole or in part using a valuation technique based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The main asset class in this category are unquoted equity securities. The fair values of the unquoted equity securities were determined to approximate the carrying amount as these are immaterial in the context of the financial statements. The following investments mature after 12 months: Shareholders’ Family Investment General Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Group AFS financial assets FVTPL financial assets HTM financial assets

115,276 - 4,152

Company AFS financial assets FVTPL financial assets HTM financial assets

115,276 1,930,674 - - - 231,904

1,952,123 - 254,357

- 77,657 -

367,443 - 33,458

2,434,842 77,657 291,967

- 77,657 -

366,429 2,412,379 - 77,657 32,766 264,670

The comparative figures as at 31 December 2010 have not been presented based on the new categorisation of financial assets resulting from the adoption of FRS 139 by virtue of the exemption given in FRS 7.44AA.



10. Deferred taxation Shareholders’ Fund Deferred tax (assets) and liabilities are attributable to the following: Assets Liabilities Net 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Property and equipment Investment properties Other investments/Investments Loans and receivables, excluding takaful receivables/Financing receivables Takaful receivables Other payables Provision for wakalah fee Unabsorbed tax losses

(25) - -

(32) (121) -

- 1,651 1,837

- - 259

(25) 1,651 1,837

(32) (121) 259

(976) (1,222) (10,280) (4,614) (2,182)

(1,345) (1,933) (3,931) (3,124) (2,752)

- - - - -

- - - - -

(976) (1,222) (10,280) (4,614) (2,182)

(1,345) (1,933) (3,931) (3,124) (2,752)

Tax (assets)/liabilities Set off of tax

(19,299) 3,488

(13,238) 259

3,488 (3,488)

259 (259)

(15,811) -

(12,979) -

Net tax assets

(15,811)

(12,979)

-

-

(15,811)

(12,979)

- (2,130) -

(121) (375) -

1,651 - 1,837

- - 1,588

1,651 (2,130) 1,837

(121) (375) 1,588

(680) (1,222) (6,818) (3,939)

(1,345) (1,577) (1,706) (2,449)

- - - -

- - - -

(680) (1,222) (6,818) (3,939)

(1,345) (1,577) (1,706) (2,449)

Tax (assets)/liabilities Set off of tax

(14,789) 3,488

(7,573) 1,588

3,488 (3,488)

1,588 (1,588)

(11,301) -

(5,985) -

Net tax assets

(11,301)

(5,985)

(11,301)

(5,985)

Company Investment properties Investment in subsidiaries Other investments/Investments Loans and receivables, excluding takaful receivables/Financing receivables Takaful receivables Other payables Provision for wakalah fee

-

-

151

152



10. Deferred taxation (continued) Shareholders’ Fund (continued) Movement in temporary differences during the year/period: Effect of Effect of Recognised movement Recognised Recognised movement As at in profit in As at 31 in profit in other in As at 31 1 July or loss exchange December or loss comprehensive exchange December 2009 (Note 34) rates 2010 (Note 34) income rates 2011 Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Property and equipment Investment properties Investments/Other investments Unearned contribution reserves Financing receivables/ Loans and receivables excluding takaful receivables Takaful receivables Qardh receivables Other payables Provision for wakalah fee Unabsorbed capital allowances Unabsorbed tax losses Tax (assets)/liabilities

1,951 280

(1,985) (409)

2 8

(32) (121)

7 1,772

- -

- -

(25) 1,651

(2,303)

2,562

-

259

(39)

1,630

(13)

1,837

16

(16)

-

-

-

-

-

-

(1,084) (2,931) 7,069 (5,124) -

(260) 1,006 (7,069) 1,176 (3,124)

(1) (8) - 17 -

(1,345) (1,933) - (3,931) (3,124)

729 355 - (6,348) (1,490)

- - - - -

(4) - - (1) -

(976) (1,222) (10,280) (4,614)

(5,617) (442)

5,617 (2,392)

- 82

- (2,752)

- 598

- -

- (28)

(2,182)

(8,185)

(4,894)

100

(12,979)

(4,416)

1,630

(46)

(15,811)



10. Deferred taxation (continued) Shareholders’ Fund (continued) Recognised Recognised Recognised As at in profit As at 31 in profit in other As at 31 1 July or loss December or loss comprehensive December 2009 (Note 34) 2010 (Note 34) income 2011 Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Property and equipment Investment in subsidiaries Investment properties Investments/Other investments Unearned contribution reserves Financing receivables/ Loans and receivables excluding takaful receivables Takaful receivables Qardh receivables Other payables Provision for wakalah fee Unabsorbed capital allowances

1,951 - 26 (974) 16

(1,951) (375) (147) 2,562 (16)

- (375) (121) 1,588 -

- (1,755) 1,772 (1,381) -

- - - 1,630 -

(2,130) 1,651 1,837 -

(1,066) (2,209) 7,069 (3,491) - (5,617)

(279) 632 (7,069) 1,785 (2,449) 5,617

(1,345) (1,577) - (1,706) (2,449) -

665 355 - (5,112) (1,490) -

- - - - - -

(680) (1,222) (6,818) (3,939) -

Tax (assets)/liabilities

(4,295)

(1,690)

(5,985)

(6,946)

1,630

(11,301)

153

154



11. Retakaful assets 31.12.2011 31.12.2010 1.7.2009 Retakaful of takaful contracts Note RM’000 RM’000 RM’000 Group Family Takaful Fund Claims liabilities Actuarial liabilities

19(a) 23(a)

General Takaful Fund Contribution liabilities Claims liabilities

19(b) 19(b)

8,002 64,808

2,392 40,617

2,500 8,486

72,810

43,009

10,986

88,597 254,017

48,213 236,911

26,680 204,939

342,614

285,124

231,619

7,045 59,755

1,535 35,642

1,651 4,964

66,800

37,177

6,615

85,326 227,776

36,059 180,472

24,586 155,982

313,102

216,531

180,568

Company Family Takaful Fund Claims liabilities Actuarial liabilities

19(a) 23(a)

General Takaful Fund Contribution liabilities Claims liabilities

19(b) 19(b)

Estimation of fair values

The carrying amounts disclosed above in respect of the retakaful contracts approximate the fair value at the date of the statements of financial position.



12. Loans and receivables, excluding takaful receivables Shareholders’ Family General Fund Takaful Takaful 31 December 2011 Note RM’000 RM’000 RM’000 Group Financing receivables Secured financing Unsecured financing Staff financing Allowance for impairment 41.4

1,371 - 12,024 (2,102)

72,556 - - (944)

6,964 (1,024)

11,293

71,612

5,940

Fixed and call deposits with licensed financial institutions with maturity more than three months Licensed banks in Malaysia Banks outside Malaysia

127,258 5,854

447,809 12,811

153,463 2,807

133,112

460,620

156,270

Other receivables: Investment receivable Sundry deposits Due from Family Takaful Fund 22 Due from General Takaful Fund 22 Due from ILB 35 Sundry receivables

2,801 563 16,229 3,425 947 13,225

28,564 - - - 2,418

6,447

37,190

30,982

13,288

181,595

563,214

175,498

4,811 2,030

Amount receivable after twelve months Financing receivables Fixed and call deposits with licensed financial institutions Other receivables

3,560 - -

70,648 18,065 1,122

5,360 6,645 -

3,560

89,835

12,005

155

156



12. Loans and receivables, excluding takaful receivables (continued) Shareholders’ Family General Fund Takaful Takaful 31 December 2011 Note RM’000 RM’000 RM’000 Company Financing receivables Secured financing Unsecured financing Staff financing Allowance for impairment 41.4

1,257 - 8,728 (1,823)

72,556 - - (944)

6,964 (1,024)

8,162

71,612

5,940

Fixed and call deposits with licensed financial institutions with maturity more than three months Licensed banks in Malaysia

108,552

446,389

146,044

Other receivables: Investment receivable Sundry deposits Due from Family Takaful Fund 22 Due from General Takaful Fund 22 Due from ILB 35 Sundry receivables

2,801 474 8,621 5,043 947 4,419

28,564 - - - - 1,497

6,447 4,811 834

22,305

30,061

12,092

139,019

548,062

164,076

Amount receivable after twelve months Financing receivables Fixed and call deposits with licensed financial institutions Other receivables

432 - -

70,648 18,065 1,122

5,360 6,645 -

432

89,835

12,005



12. Loans and receivables, excluding takaful receivables (continued) Shareholders’ Family General Fund Takaful Takaful 31 December 2010 Note RM’000 RM’000 RM’000 Group Other receivables: Investment receivable Deposits Due from Shareholders’ Fund 22 Due from Family Takaful Fund 22 Due from General Takaful Fund 22 Due from ILB 35 Sundry receivables

1,748 495 - 24,273 12,329 68 11,385

47,254 179 - - - - 211

7,529 463 6,692 2,495

50,298

47,644

17,179

Other receivables: Investment receivable Deposits Due from Family Takaful Fund 22 Due from General Takaful Fund 22 Due from ILB 35 Sundry receivables

1,748 495 17,859 12,329 68 3,662

47,254 179 - - - 95

7,529 6,692 2,495

36,161

47,528

16,716

Company

Estimation of fair values The fair value of the financing receivables were determined to approximate the carrying amounts as these are immaterial in the context of the financial statements. The carrying amounts of fixed and call deposits and other receivables approximate their fair values.

157

158



13. Takaful receivables Family Takaful Fund General Takaful Fund 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group Note RM’000 RM’000 RM’000 RM’000 Due contributions Due from retakaful/co-takaful

53,874 13,180

44,744 8,347

41,663 15,321

67,580 22,704

Less: Allowance for impaired/doubtful debts 41.4

67,054 (5,567)

53,091 (9,434)

56,984 (9,522)

90,284 (26,719)

61,487

43,657

47,462

63,565

Due contributions Due from retakaful/co-takaful

50,527 8,404

40,004 3,264

38,369 2,571

57,325 8,137

Less: Allowance for impaired/doubtful debts 41.4

58,931 (5,441)

43,268 (7,976)

40,940 (9,444)

65,462 (23,047)

53,490

35,292

31,496

42,415

Company

14. Qardh receivables Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Shareholders’ Fund Note RM’000 RM’000 RM’000 RM’000 At 1 January 2011/1 July 2009 Increase/(Decrease) during the year/period

1,357 68

31,722 (26,826)

- -

28,274 (28,274)

Qardh written off 33 Effect of movement in exchange rates

1,425 (1,145) (3)

4,896 (2,995) (544)

- - -

-

277

1,357

-

-

At 31 December



15. Cash and cash equivalents Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Shareholders’ Fund Cash and bank balances Fixed and call deposits with licensed financial institutions with maturity less than three months Licensed banks in Malaysia Banks outside Malaysia

8,226

2,691

8,123

2,321

29,535 23,504

- -

19,688 -

-

61,265

2,691

27,811

2,321

Family Takaful Fund Cash and bank balances Fixed and call deposits with licensed financial institutions with maturity less than three months Licensed banks in Malaysia Banks outside Malaysia

31,215

9,304

22,998

4,368

166,010 68,594

- -

157,339 -

-

265,819

9,304

180,337

4,368

General Takaful Fund Cash and bank balances Fixed and call deposits with licensed financial institutions with maturity less than three months Licensed banks in Malaysia Banks outside Malaysia

6,438

11,841

3,431

10,152

31,951 9,381

- -

29,310 -

-

47,770

11,841

32,741

10,152

The carrying amounts approximate their fair values due to the relatively short-term nature of these financial instruments.

159

160



16. Assets held for sale As at 31 December 2011, the assets held for sale are as follows: Shareholders’ Fund Family Takaful 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 Group and Company At 1 January 2011/1 July 2009 Reclassified (to)/from investment properties 4 Settlement for asset held for sale

- - -

1,471 (1,471) -

- 668 -

800 (800)

At 31 December

-

-

668

-

The proposed sale of investment properties of the Shareholders’ Fund was aborted during the previous financial period as the potential buyer had withdrawn from the transaction. Accordingly, the property has been reclassified to Investment Properties during the financial period ended 31 December 2010. 17. Share capital Group and Company Number Number Amount of shares Amount of shares 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 ’000 RM’000 ’000 Authorised Ordinary shares of RM1.00 each

500,000

500,000

500,000

500,000

Issued and fully paid Ordinary shares of RM1.00 each 162,817 162,817 162,817 162,817 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. 18. Reserves The balances as shown in the statements of changes in equity are as follows: 18.1 Foreign currency translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of the Group entities with functional currencies other than RM.



18. Reserves (continued) 18.2 Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets recognised in other comprehensive income until the investments are derecognised or impaired. 18.3 Retained earnings The Finance Act 2007 introduced a single tier company income tax system with effect from 1 January 2008. As such, the remaining Section 108 tax credit is available to the Company until such time the credit is fully utilised or upon expiry of the six year transitional period on 31 December 2013, whichever is earlier. During the year, the Company has fully utilised its available Section 108 tax credit balances. 19. Takaful contract liabilities Gross Retakaful Net Group Note RM’000 RM’000 RM’000 31 December 2011 Family Takaful Fund General Takaful Fund

19(a) 19(b)

102,681 883,655

(8,002) (342,614)

94,679 541,041

986,336

(350,616)

635,720

52,904 775,598

(2,392) (285,124)

50,512 490,474

828,502

(287,516)

540,986

43,817 633,145

(2,500) (231,619)

41,317 401,526

676,962

(234,119)

442,843

31 December 2010 Family Takaful Fund General Takaful Fund

19(a) 19(b)

1 July 2009 Family Takaful Fund General Takaful Fund

19(a) 19(b)

161

162



19. Takaful contract liabilities (continued) Gross Retakaful Net Company Note RM’000 RM’000 RM’000 31 December 2011 Family Takaful Fund General Takaful Fund

19(a) 19(b)

93,693 804,344

(7,045) (313,102)

86,648 491,242

898,037

(320,147)

577,890

44,471 659,478

(1,535) (216,531)

42,936 442,947

703,949

(218,066)

485,883

34,227 536,372

(1,651) (180,568)

32,576 355,804

570,599

(182,219)

388,380

31 December 2010 Family Takaful Fund General Takaful Fund

19(a) 19(b)

1 July 2009 Family Takaful Fund General Takaful Fund

19(a) 19(b)

(a) Family Takaful Fund

The Family Takaful Fund contract liabilities and its movements are further analysed as follows: Gross Retakaful Net Group RM’000 RM’000 RM’000 31 December 2011 Provision for claims reported by participants Provision for IBNR

30,237 72,444

(1,279) (6,723)

28,958 65,721

Provision for outstanding claims

102,681

(8,002)

94,679

Provision for claims reported by participants Provision for IBNR

26,762 26,142

(1,080) (1,312)

25,682 24,830


52,904

(2,392)

50,512

31 December 2010



19. Takaful contract liabilities (continued) (a) Family Takaful Fund (continued) Gross Retakaful Net Group RM’000 RM’000 RM’000 1 July 2009 Provision for claims reported by participants Provision for IBNR

19,931 23,886

(724) (1,776)

19,207 22,110


43,817

(2,500)

41,317


26,150 67,543

(696) (6,349)

25,454 61,194


93,693

(7,045)

86,648


24,085 20,386

(266) (1,269)

23,819 19,117


44,471

(1,535)

42,936


17,242 16,985

(88) (1,563)

17,154 15,422


34,227

(1,651)

32,576

Company 31 December 2011

31 December 2010

1 July 2009

163

164



19. Takaful contract liabilities (continued) (a) Family Takaful Fund (continued) Provision for outstanding claims Gross Retakaful Net Group Note RM’000 RM’000 RM’000 At 1 July 2009 Claims incurred during the period Claims paid during the period 26 Increase in IBNR Effect of movement in exchange rates

43,817 553,162 (546,309) 2,256 (22)

(2,500) (28,475) 28,107 464 12

41,317 524,687 (518,202) 2,720 (10)

At 31 December 2010/1 January 2011 Claims incurred during the year Claims paid during the year 26 Increase/(Decrease) in IBNR Effect of movement in exchange rates

52,904 436,516 (432,862) 46,302 (179)

(2,392) (22,685) 22,113 (5,411) 373

50,512 413,831 (410,749) 40,891 194

At 31 December 2011

102,681

(8,002)

94,679

At 1 July 2009 Claims incurred during the period Claims paid during the period 26 Increase in IBNR

34,227 464,179 (457,336) 3,401

(1,651) (10,633) 10,455 294

32,576 453,546 (446,881) 3,695

At 31 December 2010/1 January 2011 Claims incurred during the year Claims paid during the year 26 Increase/(Decrease) in IBNR

44,471 369,063 (366,998) 47,157

(1,535) (15,225) 14,795 (5,080)

42,936 353,838 (352,203) 42,077

At 31 December 2011

93,693

(7,045)

86,648

Company

Included in the Company’s increase in IBNR is approximately RM28,630,000 due to revisions made to factors used in the IBNR determination and a higher level of precision in estimating the IBNR for certain lines of business within the Family Takaful Fund.



19. Takaful contract liabilities (continued) (b) General Takaful Fund The General Takaful contract liabilities and its movements are further analysed as follows: Gross Retakaful Net Group Note RM’000 RM’000 RM’000 31 December 2011 Provision for claims reported by participants Provision for IBNR

387,642 143,859

(215,374) (38,643)

172,268 105,216

Provision for outstanding claims Provision for unearned contributions

531,501 352,154

(254,017) (88,597)

277,484 263,557

883,655

(342,614)

541,041


356,285 107,271

(211,009) (25,902)

145,276 81,369


463,556 312,042

(236,911) (48,213)

226,645 263,829

775,598

(285,124)

490,474


296,288 80,056

(193,392) (11,547)

102,896 68,509


376,344 256,801

(204,939) (26,680)

171,405 230,121

633,145

(231,619)

401,526

(i) (ii)

31 December 2010

(i) (ii)

1 July 2009

(i) (ii)

165

166



19. Takaful contract liabilities (continued) (b) General Takaful Fund (continued) Gross Retakaful Net Company Note RM’000 RM’000 RM’000 31 December 2011 Provision for claims reported by participants Provision for IBNR

340,045 137,236

(190,079) (37,697)

149,966 99,539


477,281 327,063

(227,776) (85,326)

249,505 241,737

804,344

(313,102)

491,242


279,433 101,530

(154,882) (25,590)

124,551 75,940


380,963 278,515

(180,472) (36,059)

200,491 242,456

659,478

(216,531)

442,947


227,201 73,985

(144,443) (11,539)

82,758 62,446


301,186 235,186

(155,982) (24,586)

145,204 210,600

536,372

(180,568)

355,804

(i) (ii)

31 December 2010

(i) (ii)

1 July 2009

(i) (ii)



19. Takaful contract liabilities (continued) (b) General Takaful Fund (continued) (i) Provision for outstanding claims Gross Retakaful Net Group Note RM’000 RM’000 RM’000 At 1 July 2009 Claims incurred for current accident period Adjustment to claims incurred in prior accident years Increase in IBNR Claims paid during the period 26 Effect of movement in exchange rate

376,344 346,912 11,396 27,215 (298,973) 662

(204,939) (142,816) (691) (14,355) 126,446 (556)

171,405 204,096 10,705 12,860 (172,527) 106

At 31 December 2010/1 January 2011 Claims incurred for current accident year Adjustment to claims incurred in prior accident years Increase in IBNR Claims paid during the year 26 Effect of movement in exchange rate

463,556 230,274 (8,241) 36,588 (189,669) (1,007)

(236,911) (69,437) 25,765 (12,741) 38,902 405

226,645 160,837 17,524 23,847 (150,767) (602)

At 31 December 2011

531,501

(254,017)

277,484

At 1 July 2009 Claims incurred for current accident period Adjustment to claims incurred in prior accident years Increase in IBNR Claims paid during the period 26

301,186 303,040 (11,058) 27,545 (239,750)

(155,982) (124,628) 10,217 (14,051) 103,972

145,204 178,412 (841) 13,494 (135,778)

At 31 December 2010/1 January 2011 Claims incurred for current accident year Adjustment to claims incurred in prior accident years Increase in IBNR Claims paid during the year 26

380,963 199,154 16,320 35,706 (154,862)

(180,472) (53,318) (8,517) (12,107) 26,638

200,491 145,836 7,803 23,599 (128,224)

At 31 December 2011

477,281

(227,776)

249,505

Company

167

168



19. Takaful contract liabilities (continued) (b) General Takaful Fund (continued) (ii) Provision for unearned contributions Gross Retakaful Net Group Note RM’000 RM’000 RM’000 At 1 July 2009 Contributions written during the period 25 Contributions earned during the period 25 Effect of movement in exchange rates

256,801 606,354 (551,118) 5

(26,680) (167,424) 145,896 (5)

230,121 438,930 (405,222) -

At 31 December 2010/1 January 2011 Contributions written during the year 25 Contributions earned during the year 25 Effect of movement in exchange rates

312,042 441,889 (401,747) (30)

(48,213) (154,871) 114,401 86

263,829 287,018 (287,346) 56

At 31 December 2011

352,154

(88,597)

263,557

At 1 July 2009 Contributions written during the period 25 Contributions earned during the period 25

235,186 499,491 (456,162)

(24,586) (133,372) 121,899

210,600 366,119 (334,263)

At 31 December 2010/1 January 2011 Contributions written during the year 25 Contributions earned during the year 25

278,515 383,316 (334,768)

(36,059) (139,159) 89,892

242,456 244,157 (244,876)

At 31 December 2011

327,063

(85,326)

241,737

Company

20. Provision for wakalah fee Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Shareholders’ Fund Note RM’000 RM’000 RM’000 RM’000 At 1 January 2011/1 July 2009 Provision for the year/period, net 31 Effect of movement in exchange rates

12,502 7,317 (80)

- 12,502 -

At 31 December 2011

19,739

12,502

9,800 5,958 - 15,758

9,800 9,800



21. Takaful payables Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Family Takaful Fund RM’000 RM’000 RM’000 RM’000 Due to retakaful companies Due to Intermediaries/Participants

11,082 7,781

4,912 10,305

7,516 7,781

1,928 10,305

18,863

15,217

15,297

12,233

Due to retakaful companies Due to Intermediaries/Participants

22,479 3,562

29,013 6,224

19,960 3,562

24,872 6,224

26,041

35,237

23,522

31,096


The carrying amounts disclosed above approximate their fair values at the end of the reporting period. 22. Other payables Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Shareholders’ Fund Note RM’000 RM’000 RM’000 RM’000 Deposit payable Outstanding purchases of investment securities Due to General Takaful Fund 12 Zakat payable Other payables and accruals

296

278

296

278

638 - 676 64,387

- 463 1,231 33,337

638 - 224 54,110

154 22,489

65,997

35,309

55,268

22,921

Family Takaful Fund Advanced takaful contribution Deposit payable Outstanding purchases of investment securities Due to Shareholders’ Fund 12 Due to General Takaful Fund 12 Due to ILB 35 Other payables and accruals

5,356 3,285

15,624 2,423

5,356 1,680

15,624 1,908

6,788 16,229 4,811 7,121 89,593

- 24,273 6,692 1,621 105,642

6,788 8,621 4,811 7,121 85,943

17,859 6,692 1,621 100,516

133,183

156,275

120,320

144,220

169

170



22. Other payables (continued) Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 General Takaful Fund Note RM’000 RM’000 RM’000 RM’000 Advanced takaful contribution Profit payable to participants Unclaimed monies Outstanding purchases of investment securities Due to Shareholders’ Fund 12 Statutory liabilities - Qardh Other payables and accruals

8,090 3,997 1,703

7,150 4,348 3,160

8,090 3,997 1,703

7,150 4,253 3,160

983 3,425 - 55,224

3,298 12,329 19,074 35,949

983 5,043 - 26,259

3,298 12,329 32,334

73,422

85,308

46,075

62,524

The carrying amounts disclosed above approximate their fair values at the end of the reporting period. 23. Participants’ fund (a) Family Takaful Fund Family Takaful Fund balance at end of the reporting period comprise the following: Gross Retakaful Net Group Note RM’000 RM’000 RM’000 31 December 2011 Actuarial liabilities 40(a) Unallocated surplus AFS reserve Special reserve Net asset value attributable to unitholders

3,124,962 (64,808) 485,635 - 110,710 - 24,947 187,822 -

3,060,154 485,635 110,710 24,947 187,822

3,934,076

(64,808)

3,869,268

Actuarial liabilities 40(a) Unallocated surplus Special reserve Net asset value attributable to unitholders

2,909,664 403,352 51,078 196,212

(40,617) - - -

2,869,047 403,352 51,078 196,212

3,560,306

(40,617)

3,519,689

31 December 2010



23. Participants’ fund (continued) (a) Family Takaful Fund (continued)

Gross Retakaful Net Group Note RM’000 RM’000 RM’000 1 July 2009 Actuarial liabilities Unallocated surplus Special reserve Net asset value attributable to unitholders

2,592,138 276,276 43,664 177,814

(8,486) - - -

2,583,652 276,276 43,664 177,814

3,089,892

(8,486)

3,081,406

Actuarial liabilities 40(a) Unallocated surplus AFS reserve Special reserve Net asset value attributable to unitholders

2,927,235 477,978 111,153 24,947 118,779

(59,755) - - - -

2,867,480 477,978 111,153 24,947 118,779

3,660,092

(59,755)

3,600,337

Actuarial liabilities 40(a) Unallocated surplus Special reserve Net asset value attributable to unitholders

2,745,004 397,165 51,078 129,103

(35,642) - - -

2,709,362 397,165 51,078 129,103

3,322,350

(35,642)

3,286,708

Actuarial liabilities Unallocated surplus Special reserve Net asset value attributable to unitholders

2,463,027 289,365 43,664 125,685

(4,964) - - -

2,458,063 289,365 43,664 125,685

2,921,741

(4,964)

2,916,777


31 December 2010

1 July 2009

171

172



23. Participants’ fund (continued) (a) Family Takaful Fund (continued) The Family Takaful Fund and its movements are analysed as follows: Gross Retakaful Net Group Note RM’000 RM’000 RM’000 At 1 July 2009 Reclassification of balances upon adoption of FRS 4

3,115,374 (25,482)

- (8,486)

3,115,374 (33,968)

Earned contributions 25(i) Liabilities paid for death, maturities, surrenders, benefits and claims Fees deducted Investment income Realised gains and losses Fair value gains and losses Other operating income (net) Profit paid to participants Increase in actuarial reserve Profit attributable to the Group transferred to statements of comprehensive income Effect of movement in exchange rates

3,089,892 857,487

(8,486) (30,100)

3,081,406 827,387

(555,394) (110,235) 228,693 62,937 32,846 46,502 (1,148) 16,829

27,987 - - - - - - (32,131)

(527,407) (110,235) 228,693 62,937 32,846 46,502 (1,148) (15,302)

(105,037) (3,066)

2,113 -

(102,924) (3,066)

At 31 December 2010/1 January 2011 Effect of first time adoption of FRS 139 45.2

3,560,306 105,340

(40,617) -

3,519,689 105,340

At 1 January 2011, restated Earned contributions 25(i) Liabilities paid for death, maturities, surrenders, benefits and claims Fees deducted Investment income Realised gains and losses Fair value gains and losses Other operating income (net) Profit paid to participants Increase in actuarial reserve Profit attributable to the Group transferred to statements of comprehensive income AFS reserve Effect of movement in exchange rates

3,665,646 694,719

(40,617) (28,671)

3,625,029 666,048

(482,465) (127,479) 165,760 71,641 12,009 27,572 (2,420) (863)

27,743 - - - - - - (24,191)

(454,722) (127,479) 165,760 71,641 12,009 27,572 (2,420) (25,054)

(98,746) 5,370 3,332

928 - -

(97,818) 5,370 3,332

At 31 December 2011

3,934,076

(64,808)

3,869,268



23. Participants’ fund (continued) (a) Family Takaful Fund (continued) Gross Retakaful Net Company Note RM’000 RM’000 RM’000 At 1 July 2009 Reclassification of balances upon adoption of FRS 4

2,945,051 (23,310)

- (4,964)

2,945,051 (28,274)

Earned contributions 25(i) Liabilities paid for death, maturities, surrenders, benefits and claims Fees deducted Investment income Realised gains and losses Fair value gains and losses Other operating income (net) Profit paid to participants Increase in actuarial reserve Profit attributable to the Company transferred to statements of comprehensive income

2,921,741 699,073

(4,964) (6,150)

2,916,777 692,923

(467,580) (71,143) 213,420 53,662 18,604 38,445 (1,148) 14,436

10,339 - - - - - - (30,678)

(457,241) (71,143) 213,420 53,662 18,604 38,445 (1,148) (16,242)

(97,160)

(4,189)

(101,349)

At 31 December 2010/1 January 2011 Effect of first time adoption of FRS 139 45.2

3,322,350 103,035

(35,642) -

3,286,708 103,035

At 1 January 2011, restated Earned contributions 25(i) Liabilities paid for death, maturities, surrenders, benefits and claims Fees deducted Investment income Realised gains and losses Fair value gains and losses Other operating income (net) Profit paid to participants Increase in actuarial reserve Profit attributable to the Company transferred to statements of comprehensive income AFS reserve

3,425,385 563,342

(35,642) (12,609)

3,389,743 550,733

(416,220) (90,873) 154,058 69,681 9,393 26,473 (2,029) (2,171)

20,305 - - - - - - (24,113)

(395,915) (90,873) 154,058 69,681 9,393 26,473 (2,029) (26,284)

(85,065) 8,118

(7,696) -

(92,761) 8,118

At 31 December 2011

3,660,092

(59,755)

3,600,337

173

174



23. Participants’ fund (continued) (a) Family Takaful Fund (continued) Family Takaful Participants’ fund comprises Participants’ Account (PA), Participants’ Special Account (PSA) and Group Family Takaful Fund (GFTA) funds. The valuation of PSA and GFTA was carried out by a qualified internal actuary. For the valuation of the PSA and Mortgage Reducing Term Takaful (MRTT) of GFTA funds of the Company, the net contribution method of valuation (with negative reserves eliminated) was used, based on certain underlying assumptions, including profit rates, mortality rates and disability rates. As with all projections, the projected future liability payable may be different from the actual amount payable due to inherent uncertainty involved in the assumptions used. For other products of GFTA, the unearned contribution reserves (UCR) were calculated using the 1/365 method. In respect of the Ordinary Family PSA & Annuity Waqaf, the statutory valuation of the Company’s Family Takaful Fund was made for the year ended 31 December 2011 and the results (before shareholders’ transfer) showed a surplus of RM350,280,000 (31.12.2010: RM304,810,000) for the Company when compared the fund balance against the actuarial projected liabilities. In respect of the Ordinary Family GFTA fund, the statutory valuation of the Company’s Group Family Takaful Fund was made for the year ended 31 December 2011. As at 31 December 2011, the deficit for the MRTT business (before shareholder’s transfer) has reduced to RM5,700,000 (31.12.2010: RM13,860,000). No further injection of Qardh is required as there is sufficient other surplus from the GFTA other products valuation to mitigate the shortfall. GFTA for other products showed a reserving surplus (before shareholders’ transfer) of RM184,930,000 (31.12.2010: RM167,320,000) for the Company. The valuation of the PSA and GFTA funds of the Indonesian subsidiary was carried out by a qualified internal actuary. The method used for PSA is based on prospective method (net level premium) on a policy-by-policy basis for inforce policies. As for the GFTA funds, the unearned contribution reserves were calculated by using the 1/365 method. The statutory valuation of the subsidiary’s PSA and GFTA made for the year ended 31 December 2011, showed a surplus of RM3,000,000 (31.12.2010: Deficit of RM1,078,000). (b) General Takaful Fund General Takaful Fund balance at end of the reporting period comprise the following: 31.12.2011 31.12.2010 1.7.2009 Group RM’000 RM’000 RM’000 Revenue account accumulated surplus Special reserves AFS reserves Foreign currency translation reserve

150,402 - 9,380 5,183

118,573 23,061 - 6,075

61,650 23,061 2,890

164,965

147,709

87,601



23. Participants’ fund (continued) (b) General Takaful Fund (continued) 31.12.2011 31.12.2010 1.7.2009 Company RM’000 RM’000 RM’000 Revenue account accumulated surplus Special reserves AFS reserves

190,117 - 9,352

155,683 23,061 -

92,796 23,061 -

199,469

178,744

115,857

The General Takaful Fund and its movements are analysed as follows: Group Company Note RM’000 RM’000 At 1 July 2009, as previously stated Reclassification of balances upon adoption of FRS 4

336,967 (249,366)

326,457 (210,600)

At 1 July 2009, restated Net contributions received /receivable Net claims incurred for the period Fees deducted, net Investment income Realised gains and losses Fair value gains and losses Other operating income Other operating expense Profit paid to participants Increase in unearned contribution reserves Surplus transferred to statements of comprehensive income Effect of movement in exchange rates

87,601 438,930 (227,873) (50,098) 36,546 13,892 280 15,050 (448) (16,740) (33,708) (118,908) 3,185

115,857 366,119 (191,065) (10,904) 35,641 13,892 280 16,139 (448) (16,232) (31,856) (118,679) -

At 31 December 2010/1 January 2011 Effect of first time adoption of FRS 139

147,709 18,665

178,744 18,570

At 1 January 2011, restated Net contributions received/receivable Net claims incurred for the year Fees deducted, net Investment income Other operating income Release of special reserve Profit paid to participants Increase in unearned contribution reserves Surplus transferred to statements of comprehensive income AFS reserve Effect of movement in exchange rates

166,374 287,018 (201,176) (31,438) 28,532 57,285 (23,061) (23,173) 328 (85,547) (9,285) (892)

197,314 244,157 (177,238) (6,437) 27,923 52,653 (23,061) (22,527) 719 (84,816) (9,218) -

At 31 December 2011

164,965

199,469

45.2

175

176



24. Operating revenue Shareholders’ Family General Fund Takaful Takaful Total Group Note RM’000 RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Gross contributions Investment income

25 27

- 14,382

699,344 165,760

441,889 28,532

1,141,233 208,674

14,382

865,104

470,421

1,349,907

- 17,086

839,909 228,693

606,354 36,546

1,446,263 282,325

17,086

1,068,602

642,900

1,728,588

- 11,652

567,736 154,058

383,316 27,923

951,052 193,633

11,652

721,794

411,239

1,144,685

- 12,352

679,831 213,420

499,491 35,641

1,179,322 261,413

12,352

893,251

535,132

1,440,735

1 July 2009 to 31 December 2010 Gross contributions Investment income

25 27

Company 1 January 2011 to 31 December 2011 Gross contributions Investment income

25 27

1 July 2009 to 31 December 2010 Gross contributions Investment income

25 27



25. Net earned contributions Family Takaful General Takaful 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group RM’000 RM’000 RM’000 RM’000 (i) Gross contributions Change in actuarial reserves/ unearned contributions reserves

699,344

839,909

441,889

606,354

(4,625)

17,578

(40,142)

(55,236)

694,719

857,487

401,747

551,118

(ii) Retakaful Change in actuarial reserves/ unearned contributions reserves

(27,608)

(30,824)

(154,871)

(167,424)

(1,063)

724

40,470

21,528

(28,671)

(30,100)

(114,401)

(145,896)

666,048

827,387

287,346

405,222

(i) Gross contributions Change in actuarial reserves/ unearned contributions reserves

567,736

679,831

383,316

499,491

(4,394)

19,242

(48,548)

(43,329)

563,342

699,073

334,768

456,162

(ii) Retakaful Change in actuarial reserves/ unearned contributions reserves

(12,609)

(6,150)

(139,159)

(133,372)

-

-

49,267

11,473

(12,609)

(6,150)

(89,892)

(121,899)

550,733

692,923

244,876

334,263

Gross earned contributions

Contributions ceded to retakaful

(iii) Net earned contributions Company

Gross earned contributions

Contributions ceded to retakaful

(iii) Net earned contributions

177

178



26. Net benefits and claims Family Takaful General Takaful 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group RM’000 RM’000 RM’000 RM’000 Gross benefits/claims paid Retakaful recoveries

(432,862) 22,113

(546,309) 28,107

(189,669) 38,902

(298,973) 126,446

Net benefits/claims paid

(410,749)

(518,202)

(150,767)

(172,527)

Gross change in contract liabilities: At 31 December At 1 January 2011/1 July 2009 Effect of movement in exchange rates

(102,681) (52,904) 174

(52,904) (43,817) 2

(531,501) (463,556) 1,395

(463,556) (376,344) (662)

(49,603)

(9,085)

(66,550)

(87,874)

Change in contract liabilities ceded to retakaful companies: At 31 December At 1 January 2011/1 July 2009 Effect of movement in exchange rates

8,002 2,392 20

2,392 2,500 (12)

254,017 236,911 (965)

236,911 204,939 556

5,630

(120)

16,141

32,528

(454,722)

(527,407)

(201,176)

(227,873)

Net benefits paid and payable/claims incurred

(i) Family Takaful Fund benefits paid and payable: Family Takaful 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 By type RM’000 RM’000 Death/disability Maturities Surrenders Medical Others

(159,899) (78,428) (159,226) (53,354) (3,815)

(157,328) (65,678) (230,941) (70,159) (3,301)

Net benefits paid and payable

(454,722)

(527,407)



26. Net benefits and claims (continued) Family Takaful General Takaful 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Company RM’000 RM’000 RM’000 RM’000 Gross benefits/claims paid Retakaful recoveries

(366,998) 14,795

(457,336) 10,455

(154,862) 26,638

(239,750) 103,972

Net benefits/claims paid

(352,203)

(446,881)

(128,224)

(135,778)

Gross change in contract liabilities: At 31 December At 1 January 2011/1 July 2009

(93,693) (44,471)

(44,471) (34,227)

(477,281) (380,963)

(380,963) (301,186)

(49,222)

(10,244)

(96,318)

(79,777)

Change in contract liabilities ceded to retakaful companies: At 31 December At 1 January 2011/1 July 2009

7,045 1,535

1,535 1,651

227,776 180,472

180,472 155,982

5,510

(116)

47,304

24,490

(395,915)

(457,241)

(177,238)

(191,065)

Net benefits paid and payable/claims incurred

(i) Family Takaful Fund benefits paid and payable: Family Takaful 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 By type RM’000 RM’000 Death/disability Maturities Surrenders Medical Others

(151,502) (66,564) (129,058) (46,309) (2,482)

(151,115) (50,063) (194,367) (61,681) (15)

Net benefits paid and payable

(395,915)

(457,241)

179

180



27. Investment income Shareholders’ Family General Fund Takaful Takaful Group RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Rental income from investment properties FVTPL financial assets Dividend income - Equity securities quoted in Malaysia Profit earned on Islamic debts securities AFS financial assets Dividend income - Equity securities quoted in Malaysia - Unit trust Profit income - Islamic debts securities - Malaysian Government Islamic papers Amortisation of premiums, net of accretion of discounts HTM financial assets Profit income - Islamic debts securities - Malaysian Government Islamic papers Amortisation of premiums, net of accretion of discounts LAR profit income Cash and cash equivalents profit income Investment expenses

844

10,067

1,144

- -

917 662

-

1,054 1,909

8,253 8,519

1,621 1,784

3,370 3 (332)

86,612 19,559 2,708

13,576 4,004 (596)

29 - - 7,926 11 (432)

4,289 2,922 (10) 23,496 54 (2,288)

149 857 (29) 6,434 49 (461)

14,382

165,760

28,532

Rental income from investment properties Profit from Islamic debt securities Profit from Malaysian Government Islamic papers Profit from deposits with financial institutions Profit from financing Other income from investments Dividend from equity securities - Quoted in Malaysia Amortisation of premiums, net of accretion of discounts Investment expenses

649 4,115 - 7,742 1,399 2,514

16,312 124,716 32,396 26,491 1,010 136

1,747 16,836 5,889 6,310 585 1,953

1,499 (329) (503)

21,586 7,124 (1,078)

2,337 1,068 (179)

Total investment income

17,086

228,693

36,546

Total investment income 1 July 2009 to 31 December 2010



27. Investment income (continued) Shareholders’ Family General Fund Takaful Takaful Company RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Rental income from investment properties FVTPL financial assets Dividend income - Equity securities quoted in Malaysia Profit earned on Islamic debts securities AFS financial assets Dividend income - Equity securities quoted in Malaysia - Unit trust Profit income - Islamic debts securities - Malaysian Government Islamic papers Amortisation of premiums, net of accretion of discounts HTM financial assets Profit income - Islamic debts securities - Malaysian Government Islamic papers Amortisation of premiums, net of accretion of discounts LAR profit income Cash and cash equivalents profit income Investment expenses

815

9,398

1,144

- -

917 662

-

1,054 1,909

8,253 8,519

1,621 1,784

2,950 3 (332)

79,600 19,559 2,708

13,408 4,004 (596)

29 - - 5,645 11 (432)

4,289 2,922 (10) 19,475 54 (2,288)

149 857 (29) 5,993 49 (461)

11,652

154,058

27,923

Rental income from investment properties Profit from Islamic debt securities Profit from Malaysian Government Islamic papers Profit from deposits with financial institutions Profit from financing Other income from investments Dividend from equity securities - Quoted in Malaysia Amortisation of premiums, net of accretion of discounts Investment expenses

643 2,721 - 5,287 784 2,288

15,511 115,889 32,396 20,846 1,010 136

1,747 16,582 5,889 5,659 585 1,953

1,461 (329) (503)

21,586 7,124 (1,078)

2,337 1,068 (179)

Total investment income

12,352

213,420

35,641

Total investment income 1 July 2009 to 31 December 2010

181

182



28. Realised gains and (losses) Shareholders’ Family General Fund Takaful Takaful Group RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Realised gains/(losses): Property and equipment

29

-

-

Investment properties

-

706

(1,003)

6,689 113

39,619 (888)

10,599 78

970 153 383

607 17 887

520 -

714 248 -

26,801 1,961 1,931

5,976 219

Total realised gains for AFS financial assets

9,270

70,935

17,392

9,299

71,641

16,389

Realised gains/(losses): Property and equipment Investment properties Investments

104 - 6,125

- 46 62,891

13,892

6,229

62,937

13,892

AFS financial assets Equity securities - quoted in Malaysia - quoted outside Malaysia Unit trust - quoted in Malaysia - unquoted in Malaysia - quoted outside Malaysia Islamic debt securities - quoted in Malaysia - quoted outside Malaysia Malaysian Government Islamic papers

1 July 2009 to 31 December 2010



28. Realised gains and (losses) (continued) Shareholders’ Family General Fund Takaful Takaful Company RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Realised gains/(losses): Property and equipment

29

-

-

Investment properties

-

706

(1,003)

6,689

39,619

10,599

970 153

607 17

520 -

714 -

26,801 1,931

5,976 219

Total realised gains for AFS financial assets

8,526

68,975

17,314

8,555

69,681

16,311

Realised gains Property and equipment Investments

54 6,125

- 53,662

13,892

6,179

53,662

13,892

AFS financial assets Equity securities - quoted in Malaysia Unit trust - quoted in Malaysia - unquoted in Malaysia Islamic debt securities - quoted in Malaysia Malaysian Government Islamic papers


183

184



29. Fair value gains and (losses) Shareholders’ Family General Fund Takaful Takaful Group Note RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Fair value gains/(losses) arising from: Investment properties

1,460

3,839

643

- -

1,344 2,616

-

-

(8)

-

-

4,218

-

-

8,170

-

1,460

12,009

643

Fair value (losses)/gains arising from: Investment properties Investments

(668) -

2,254 30,592

280 -

(668)

32,846

280

1,450

3,839

643

-

1,344

-

-

(8)

-

-

4,218

-

-

5,554

-

1,450

9,393

643

FVTPL financial assets Equity securities - quoted in Malaysia - quoted outside Malaysia Islamic debt securities - unquoted in Malaysia Commodity, equity and fixed income closed end fund - unquoted in Malaysia Total fair value gains for FVTPL financial assets

35


Company 1 January 2011 to 31 December 2011 Fair value gains/(losses) arising from: Investment properties FVTPL financial assets Equity securities - quoted in Malaysia Islamic debt securities - unquoted in Malaysia Commodity, equity and fixed income closed end fund - unquoted in Malaysia Total fair value gains for FVTPL financial assets

35



29. Fair value gains and (losses) (continued) Shareholders’ Family General Fund Takaful Takaful Company RM’000 RM’000 RM’000 1 July 2009 to 31 December 2010 Fair value (losses)/gains arising from: Investment properties Investments

(671) -

2,075 16,529

280 -

(671)

18,604

280

30. Other operating income Shareholders’ Family General Fund Takaful Takaful Group Notes RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Income from ILB, service charge and management fees Miscellaneous income Recovery of bad debts written off Writeback of allowance for impaired debts 41.4 Writeback of allowance for impaired financing 41.4 Writeback of special reserve

7,495 1,922 - - 821 -

- 402 132 3,867 2,042 30,673

960 2,451 17,197 2,042 23,061

10,238

37,116

45,711

Income from ILB, service charge and management fees Miscellaneous income Writeback of allowance for doubtful debts Writeback of allowance for doubtful financing Writeback of allowance for diminution in value of investments

10,363 5,305 2,264 - 2,163

- 9,498 7,887 125 31,066

827 12,260 124 1,839

20,095

48,576

15,050

Income from ILB, service charge and management fees Miscellaneous income Recovery of bad debts written off Writeback of allowance for impaired debts 41.4 Writeback of allowance for impaired financing 41.4 Writeback of special reserve

6,086 - - - 821 -

- 635 132 2,535 2,042 30,673

2,451 13,603 2,042 23,061

6,907

36,017

41,157


Company 1 January 2011 to 31 December 2011

185

186



30. Other operating income (continued) Shareholders’ Family General Fund Takaful Takaful Company Notes RM’000 RM’000 RM’000 1 July 2009 to 31 December 2010 Income from ILB, service charge and management fees Miscellaneous income Writeback of allowance for doubtful debts Writeback of allowance for doubtful financing Writeback of allowance for diminution in value of investments

7,996 - - - 1,497

- 15,061 - 125 25,333

2,819 11,780 124 1,416

9,493

40,519

16,139

31. Management expenses Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Shareholders’ Fund Notes RM’000 RM’000 RM’000 RM’000 Personnel expenses (including key management personnel) Directors’ remuneration - Salaries and other emoluments - Fees Shariah Committee remuneration - Emoluments - Fees Wages, salaries and others Contributions to Employees’ Provident Fund

1,852 860

5,574 983

1,763 579

5,165 721

113 167 90,063

207 155 107,915

- 167 76,355

71 153 90,090

9,106

13,565

9,106

13,278

102,161

128,399

87,970

109,478



31. Management expenses (continued) Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Shareholders’ Fund Notes RM’000 RM’000 RM’000 RM’000 Depreciation Auditors’ remuneration Company auditors - Statutory audit Other auditors - Statutory audit Licence fees Legal fees Professional fees Rental of properties Rental of equipments Repair and maintenance - property and equipment Travelling expenses Utilities Communication costs Advertising Provision for wakalah fees 20 Other expenses

10,601

13,707

9,419

11,988

424

374

400

340

79 193 150 11,521 8,353 2,284

89 616 323 11,058 11,701 4,061

- 127 87 10,702 6,035 2,275

522 145 10,640 8,948 4,047

7,831 4,423 2,426 6,552 5,418 7,317 27,298

10,325 4,968 4,107 9,901 5,228 12,502 23,922

6,840 3,759 1,094 4,446 3,573 5,958 14,825

9,553 4,223 3,244 7,363 3,721 9,800 8,199

94,870

112,882

69,540

82,733

Total management expenses

197,031

241,281

157,510

192,211

All management expenses are incurred at the Shareholders’ Fund level.

187

188



32. Key management personnel compensation The key management personnel compensation are as follows: Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Directors Executive: Salaries and other emoluments Benefits-in-kind

1,812 7

5,309 10

1,723 7

5,165 10

1,819

5,319

1,730

5,175

Non-Executive: Other emoluments Fees Benefits-in-kind

40 860 9

265 983 3

40 579 5

721 3

909

1,251

624

724

Other key management personnel: Short-term employment benefits Benefits-in-kind

4,426 159

5,451 180

3,718 -

4,417 -

4,585

5,631

3,718

4,417

Total

7,313

12,201

6,072

10,316

The estimated monetary value of benefits-in-kind received by the Directors, are RM16,000 (2010: RM13,000) and RM12,000 (2010: RM13,000) at Group and Company level respectively.



33. Other operating expenses Shareholders’ Family General Fund Takaful Takaful Group RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Allowance for impairment in AFS financial assets Write off of equipment and other assets Qardh written off Miscellaneous expenses

1,418 36 1,145 493

4,547 - - 4,997

2,285 3,173

3,092

9,544

5,458

Allowance for bad and doubtful debts Allowance for doubtful financing Write off of equipment and other assets Qardh written off Miscellaneous expenses Administrative and general expenses

214 1,754 532 2,995 1,446 1,331

469 - - - - 1,605

448

8,272

2,074

448

Allowance for impairment in value of investment in subsidiary Allowance for impairment in AFS financial assets Write off of equipment and other assets Miscellaneous expenses

7,018 1,418 36 422

- 4,547 - 4,997

2,285 3,173

8,894

9,544

5,458

Allowance for diminution in value of investment in subsidiary Allowance for bad and doubtful debts Write off of equipment and other assets Allowance for doubtful financing Miscellaneous expenses Administrative and general expenses

1,500 - 532 1,754 1,446 -

- 469 - - - 1,605

448

5,232

2,074

448


Company 1 January 2011 to 31 December 2011


189

190



34. Tax expense Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 Recognised in profit or loss Current tax expense Malaysian - current Overseas - current Under provision in prior years

24,434 - 4,288

36,579 17 7,919

24,434 - 4,288

36,579 7,919

Total current tax recognised in profit or loss

28,722

44,515

28,722

44,498

Deferred tax benefits Deferred tax recognised in profit or loss

(4,416)

(4,894)

(6,946)

(1,690)

24,306

39,621

21,776

42,808

Profit for the year/period Zakat Total income tax expense

76,379 733 24,306

57,749 516 39,621

71,709 474 21,776

49,856 358 42,808

Profit before zakat and taxation

101,418

97,886

93,959

93,022

Income tax using Malaysian tax rate of 25% Items not subject to tax Non deductible expenses

25,355 (19,997) 14,660

24,472 (14,104) 21,334

23,490 (18,533) 12,531

23,256 (7,618) 19,251

Under provision of tax in prior years

20,018 4,288

31,702 7,919

17,488 4,288

34,889 7,919

Tax expense

24,306

39,621

21,776

42,808

1,630

-

10

Total tax expense Reconciliation of tax expense

Recognised directly in equity AFS financial assets - Deferred tax

10

1,630

-



35. Investment-linked business (ILB) Statements of financial position as at 31 December 2011 Group Company 2011 2010 2011 2010 Assets Note RM’000 RM’000 RM’000 RM’000 Investments 7(c) Other investments 9(b) Takaful receivables Loans and receivables, excluding takaful receivables Due from Family Takaful Fund 22 Cash and cash equivalents

- 174,392 865

193,861 - -

- 108,913 865

127,145 -

455 7,121 11,673

3,098 1,621 2,471

455 7,121 8,110

3,098 1,621 2,078

Total ILB assets

194,506

201,051

125,464

133,942

Takaful contract liabilities Takaful payables Other payables Due to Shareholders’ Fund 12

212 633 3,887 947

453 - 3,253 68

212 633 3,887 947

453 3,253 68

Total ILB liabilities

5,679

3,774

5,679

3,774

Net asset value of funds

188,827

197,277

119,785

130,168

Liabilities

Statements of comprehensive income for the year ended 31 December 2011 Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Gross earned contributions Contributions ceded to retakaful

27,945 36

25,560 (75)

11,113 36

6,942 (75)

Net earned contributions

27,981

25,485

11,149

6,867

Net benefits paid and payable Wakalah fee Administration fee

(42,143) - (3,748)

(48,900) (880) (11)

(24,051) - (3,748)

(26,621) (880) (11)

Underwriting loss

(17,910)

(24,306)

(16,650)

(20,645)

191

192



35. Investment-linked business (ILB) (continued) Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Note RM’000 RM’000 RM’000 RM’000 Comprises: Underwriting (loss)/profit - Individual Family ILB - Group Family ILB

(17,748) (162)

(26,502) 2,196

(16,488) (162)

(22,841) 2,196

Less: Underwriting loss - Individual Family ILB

(17,910)

(24,306)

(16,650)

(20,645)

17,748

26,502

16,488

22,841

Underwriting (loss)/profit – Group Family ILB Investment income Fair value gains and (losses) 29 Other operating income

(162) 1,085 8,170 274

2,196 2,409 38,011 -

(162) 1,085 5,554 274

2,196 2,409 19,068 -

Profit attributable to the Group/Company and participants after excluding underwriting profit - Individual Family ILB Profit attributable to the Group/Company transferred to statements of comprehensive income

9,367

42,616

6,751

23,673

(355)

(1,130)

(355)

(1,130)

9,012

41,486

6,396

22,543

197,277

179,006

130,168

126,877

(17,748)

(26,502)

(16,488)

(22,841)

Profit attributable to participants for the year/period Family ILB Fund at beginning of the year/period Underwriting loss - Individual Family ILB Profit attributable to participants for the year/period Unearned contribution reserves Seed capital Effect of movement in exchange rates Family ILB Fund at end of the year/period

9,012 (291) - 577 188,827

41,486 589 3,000 (302) 197,277

6,396 (291) - - 119,785

22,543 589 3,000 130,168



36. Earnings per share - Group Basic earnings per ordinary shares The calculation of basic earnings per share is based on the net profit attributable to ordinary shareholders of RM76,785,000 (2010 : RM56,346,000) and the weighted average number of ordinary shares issued during the year of 162,817,000 (2010 : 162,817,000). 37. Dividends

Sen per Total share amount Date of (net of tax) RM’000 payment

1 January 2011 to 31 December 2011 Ordinary dividend paid, final for financial period 2010 Ordinary dividend paid, interim for financial year 2011

5.25 5.75

Total amount

8,548 9,362

27.5.2011 2.12.2011

17,910

1 July 2009 to 31 December 2010 Ordinary dividend paid, final for financial year 2009 Ordinary dividend paid, interim for financial period 2010

5.44 5.25

Total amount

8,853 8,548

11.12.2009 8.10.2010

17,401

Subsequent to the end of the reporting period, the Directors proposed a final dividend as set out below. The said dividends will be recognised in subsequent financial reports upon approval by the shareholders. Final proposed for financial year ended 31 December 2011 - ordinary

Sen per Total share amount (net of tax) RM’000 10.00

16,282

193

194



38. Operating segments Segment information is presented in respect of the Group’s geographical segments. This is based on the Group’s management and internal reporting structure. Inter-segment pricing, if any, is determined based on negotiated terms. The Group does not present information by business segment as it is principally engaged as an operator of Family and General takaful/retakaful business. The financial position and performance of the Family and General takaful businesses managed by the Group and the Company have been disclosed separately within these financial statements. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise expenses, which are all incurred by Shareholder’s Fund for the management of Takaful funds. Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one year. Geographical segments In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are also based on the geographical location of assets. Malaysia Indonesia Consolidated Geographical segments RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Total external revenue Inter-segment revenue

1,153,171 -

196,736 -

1,349,907 -

Total segment revenue

1,153,171

196,736

1,349,907

Segment result/Profit before zakat and taxation

98,543

2,875

101,418

Zakat Tax expense

(733) (24,306)

Profit for the year

76,379



38. Operating segments (continued) Malaysia Indonesia Consolidated Geographical segments RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Segment assets by location of assets

5,483,394

400,530

5,883,924

Segment liabilities by location of liabilities

1,240,612

66,779

1,307,391

Capital expenditure by location of assets

12,028

1,127

13,155

Depreciation and amortisation

9,475

1,126

10,601

Non cash expenses other than depreciation and amortisation

9,431

-

9,431

Total external revenue Inter-segment revenue

1,464,794 -

263,794 -

1,728,588 -

Total segment revenue

1,464,794

263,794

1,728,588

Segment result/Profit before zakat and taxation

89,559

8,327

97,886

Zakat Tax expense

(516) (39,621)


57,749


Segment assets by location of assets

4,376,081

896,503

5,272,584

Segment liabilities by location of liabilities

986,140

165,385

1,151,525

Capital expenditure by location of assets

6,618

1,330

7,948

Depreciation and amortisation

11,988

1,719

13,707

Non cash expenses other than depreciation and amortisation

27

1,184

1,211

195

196



38. Operating segments (continued) Segmental Information on Cash Flows Shareholders’ Family General Fund Takaful Takaful Total Group RM’000 RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Cash flows from/(used in): Operating activities Investing activities Financing activity

203,692 (127,322) (17,910)

424,417 (158,617) -

77,421 (41,492) -

705,530 (327,431) (17,910)

58,460

265,800

35,929

360,189

Net increase in cash and cash equivalents Effect of movement in exchange rates Cash and cash equivalents: At beginning of the year

58,460 114

265,800 (83)

35,929 -

360,189 31

2,691

11,775

11,841

26,307

At end of the year

61,265

277,492

47,770

386,527

21,220 (7,792) (17,401)

(49,767) 1,006 -

2,915 - -

(25,632) (6,786) (17,401)

(3,973)

(48,761)

2,915

(49,819)

Net (decrease)/increase in cash and cash equivalents Effect of movement in exchange rates Cash and cash equivalents: At beginning of the period

(3,973) (932)

(48,761) -

2,915 -

(49,819) (932)

7,596

60,536

8,926

77,058

At end of the period

2,691

11,775

11,841

26,307

1 July 2009 to 31 December 2010 Cash flows from/(used in): Operating activities Investing activities Financing activity



38. Operating segments (continued) Segmental Information on Cash Flows (continued) Shareholders’ Family General Fund Takaful Takaful Total Company RM’000 RM’000 RM’000 RM’000 1 January 2011 to 31 December 2011 Cash flows from/(used in): Operating activities Investing activities Financing activity

142,708 (99,308) (17,910)

221,524 (39,523) -

56,077 (33,488) -

420,309 (172,319) (17,910)

25,490

182,001

22,589

230,080

Net increase in cash and cash equivalents Cash and cash equivalents: At beginning of the year

25,490

182,001

22,589

230,080

2,322

6,445

10,152

18,919

At end of the year

27,812

188,446

32,741

248,999

19,748 (6,498) (17,401)

(48,694) 800 -

4,466 - -

(24,480) (5,698) (17,401)

(4,151)

(47,894)

4,466

(47,579)

Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents: At beginning of the period

(4,151)

(47,894)

4,466

(47,579)

6,473

54,339

5,686

66,498

At end of the period

2,322

6,445

10,152

18,919

1 July 2009 to 31 December 2010 Cash flows from/(used in): Operating activities Investing activities Financing activity

197

198



39. Risk management framework Enterprise Risk Management (ERM) framework is in place and endorsed by the Board of Directors (the Board). The governance over the ERM is by the Risk Management Committee of the Board (RISCO) and the key functional roles of RISCO are the approval and oversight of risk policies, methodologies and risks appetite, risk tolerance and acceptance. The operational and tactical risks are escalated to the Management Risk Committee (MRC) chaired by the Group Managing Director. The MRC consists of all divisional heads. The ERM comprises of the Operational Risk Management (ORM) – Compliance (including Shariah), People, Processes and Systems and Business Risks, whereas Financial Risk Management (FRM) comprises of Financial Risks, Investment and Insurance risks. Focus is on the identification, evaluation, managing and monitoring of all the Key Risks Indicator, which are strategically linked to the Key Results Areas and Key Performance Indicators (Balanced Scorecard) via an established system of Quarterly Risks Scoring and updating to evaluate the control effectiveness and implementation of Management Action Plans to reach the targeted Corporate and Divisional/Departmental risks scoring. Operational Loss Incidences reporting (including fraud risks, compliances and business/systems disruptions) based on the Basel II (7 dimensions) are also reported to RISCO and the Board to act as a gauge of the effectiveness of the ORM in place. Financial Fraud Risks Management – AMLA and Internal & External Frauds are governed by the Fraud and Integrity Policy, and Distribution Channels Frauds and Ethics by the Whistle Blowing Policy are in place. FRM consisting of Risk and Capital Management Framework, Stress Testing and Quarterly MSMR Capital Adequacy monitoring is in place. Asset and Liability Management Framework was put in place during the financial year ended 31 December 2011 to enhance FRM and to facilitate in the Group’s and the Company’s investment strategy. 40. Takaful risk management (a) Family Takaful Fund The Family Takaful contracts consist of: (i) Family Takaful non-investment-linked contracts The Family Takaful non-investment-linked contracts are mainly credit related takaful products, group takaful schemes, yearly renewable individual ordinary medical plan, regular contribution individual ordinary plans and annuity plans. The main products type are Mortgage Reducing Term Takaful (MRTT), Group Credit Takaful, Group Term Takaful and Group Medical Takaful. (ii) Family Takaful investment-linked contracts The Family Takaful investment-linked contracts are mainly made up of regular contribution Investment-linked products and single contribution structured investment-linked plan. The main products are Takaful myInvest and Takaful myGenLife.



40. Takaful risk management (continued) (a) Family Takaful Fund (continued) The key coverage for the Family Takaful contracts The key coverage for the Family Takaful contracts are death, total and permanent disability, hospital and surgical benefits, personal accident benefits, daily hospitalisation cash allowance benefit, dread disease benefit, waiver of contribution benefits and survival benefits (for annuity). Concentration of Family Takaful risk The following gives details of the Group’s and the Company’s concentration of risks based on outstanding actuarial reserves by main product categories: Gross Retakaful Net Group Note RM’000 RM’000 RM’000 31 December 2011 Term Endowment Mortgage Investment-linked Annuity

301,896 1,431,050 1,082,552 392 309,072

(1,361) (583) (62,853) (11) -

300,535 1,430,467 1,019,699 381 309,072

Total Family actuarial liabilities

3,124,962

(64,808)

3,060,154

Term Endowment Mortgage Investment-linked Annuity

232,986 1,400,226 971,472 594 304,386

(2,402) (459) (37,756) - -

230,584 1,399,767 933,716 594 304,386


2,909,664

(40,617)

2,869,047

Term Endowment Mortgage Investment-linked Annuity

296,513 1,271,956 1,049,391 303 309,072

- - (59,755) - -

296,513 1,271,956 989,636 303 309,072


2,927,235

(59,755)

2,867,480

23(a)

31 December 2010

23(a)


23(a)

199

200



40. Takaful risk management (continued) (a) Family Takaful Fund (continued) Gross Retakaful Net Company RM’000 RM’000 RM’000 31 December 2010 Term Endowment Mortgage Investment-linked Annuity

228,166 1,264,137 947,721 594 304,386

- - (35,642) - -

228,166 1,264,137 912,079 594 304,386


2,745,004

(35,642)

2,709,362

23(a)

Key Assumptions Reserves for all plans were valued on a basis that the Appointed Actuary would consider adequate and appropriate, and in line with the valuation basis set out by BNM in a letter issued by BNM in respect of the Valuation of Liabilities for Mortgage Reducing Term Takaful (JPIT/1/2007/TO) and Guidelines on Investment Linked Insurance/Takaful Business (BNM/RH/GL 010-15). For certain products where there is no specific guideline issued by BNM for takaful operators, the reserves were calculated in accordance with actuarial principles, taking into account the reserving methodology and basis stated in the Insurance Regulation, 1996 which was applicable to conventional insurance companies prior to implementation of Risk-Based Capital (RBC). The key assumptions to which the estimation of actuarial liabilities is particularly sensitive are as follows: -

Mortality and morbidity rates

This is significant for contract with significant coverage for death, total permanent disability and critical illness and the increase in the mortality or morbidity would have direct impact on the liability.

-

Discount rate

As the liabilities are the present value of future cash flows, both incomes and outgo, a decrease in discount rate would have an increasing impact on the liabilities and vice-versa.



40. Takaful risk management (continued) (a) Family Takaful Fund (continued) Sensitivities A summary of key assumptions used for sensitivity analysis is as below: Group and Company 31 December 2011 31 December 2010 Mortality and Mortality and morbidity Discount morbidity Discount rates rate rates rate Endowment Mortgage Investment-linked

+10%(i) +10%(ii) +10%(i)

-1% -1% -1%

+10%(i) +10%(ii) +10%(i)

-1% -1% -1%

(i) 10% Industry mortality and morbidity experience tables DGI96 (ii) 10% Industry mortality and morbidity experience tables M8388 The analysis below is performed for reasonably possible movements in each of the key assumptions with all other assumptions held constant, showing the impact on gross and net liabilities, and unallocated surplus. The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear. Sensitivity information will also vary according to the current economic assumptions. Impact on Impact on Impact on Change in gross net unallocated assumptions liabilities liabilities surplus Family takaful contracts RM’000 RM’000 RM’000 Group 31 December 2011 Mortality/morbidity Discount rate

+10% -1%

148,637 116,131

131,101 106,152

(131,101) (106,152)

+10% -1%

131,883 95,806

117,413 85,874

(117,413) (85,874)

+10% -1%

103,595 73,339

89,984 67,284

(89,984) (67,284)

+10% -1%

98,322 63,813

86,662 56,691

(86,662) (56,691)

31 December 2010 Mortality/morbidity Discount rate Company 31 December 2011 Mortality/morbidity Discount rate 31 December 2010 Mortality/morbidity Discount rate

201

202



40. Takaful risk management (continued) (b) General Takaful Fund The General Takaful contracts consist of fire, motor, personal accident, workmen’s compensation and employers’ liability, liabilities and engineering and others. Concentration of General Takaful risk The table below sets out the concentration of General Takaful gross contribution by type of business. Gross Retakaful Net Group RM’000 RM’000 RM’000 31 December 2011 Fire Motor Marine Miscellaneous

117,618 177,991 21,445 124,835

(65,949) (5,463) (13,426) (70,033)

51,669 172,528 8,019 54,802

Gross contributions

441,889

(154,871)

287,018

Fire Motor Marine Miscellaneous

201,450 259,908 21,045 123,951

(106,355) (5,547) (11,155) (44,367)

95,095 254,361 9,890 79,584

Gross contributions

606,354

(167,424)

438,930


99,186 155,794 17,468 110,868

(58,531) (4,157) (12,226) (64,245)

40,655 151,637 5,242 46,623

Gross contributions

383,316

(139,159)

244,157


160,708 227,585 12,953 98,245

(84,410) (3,109) (9,375) (36,478)

76,298 224,476 3,578 61,767

Gross contributions

499,491

(133,372)

366,119

31 December 2010


31 December 2010



40. Takaful risk management (continued) (b) General Takaful Fund (continued) Key Assumptions The key assumptions underlying the estimation of liabilities is that the Group’s and the Company’s future claims development will follow a similar pattern to past claims development experience, including average claim cost, average claim frequency, business mix for each accident year. Additional qualitative judgments are used to assess the extent to which past trends may not apply in the future, for example, isolated occurrence, changes in market factors such as public attitude to claiming, economic conditions, as well as internal factors, such as, portfolio mix, underwriting policy, policy conditions and claims handling procedures. Other key circumstances affecting the reliability of assumptions include delays in settlement and changes in foreign currency rates. Sensitivities The General Takaful claim liabilities are sensitive to the above key assumptions and change in these assumptions may impact the liabilities and operating surplus of the General Takaful Fund significantly. It has not been possible to quantify the sensitivity of certain assumptions, such as, legislative changes or uncertainty in the estimation process. The analysis below is performed for reasonably possible movements in key assumptions with all other assumptions held constant, showing the impact on gross and net liabilities and operating surplus. The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are nonlinear. The key assumptions to which the estimation of actuarial liabilities is particularly sensitive are as follows: -

Fire loss ratio for latest accident year

This is significant as Fire portfolio is one of the largest under general business, a change in loss ratio estimate will impact the liabilities significantly.

-

Motor Act loss ratio for latest accident year

Motor Act business is long tailed in nature and need years before the claim experience matures. A significant impact may result if the ultimate experience differs from current estimation.

-

Average claim cost

Reserves are based on assumption that historical average claim cost is reflective of the future experience. Increase in average cost will increase future liabilities. -

Average claim frequency

Reserves are based on assumption that historical average claim number in each accident year reflects the future experience. A change in average number of claims will impact the future liabilities. -

Average claim settlement period

Reserves are based on assumption that claim settlement period will be stable over years. A change in claim handling practice will affect the claim cost and the future liabilities.

203

204



40. Takaful risk management (continued) (b) General Takaful Fund (continued) Below shows the summary of changes in key assumptions and the impact to the gross and net claim liabilities, and the operating surplus. Impact on Impact on Impact on Group Change in gross net operating assumptions liabilities liabilities surplus 31 December 2011 RM’000 RM’000 RM’000 Fire loss ratio for AY 2011 Motor Act loss ratio for AY 2011 Average claim cost Average claim frequency Average claim settlement period

10% 10% 10% 10% Increase by 6 months

10,949 2,466 48,545 26,512 9,948

4,647 2,466 22,235 18,935 6,748

(4,647) (2,466) (22,235) (18,935) (6,748)


15,864 4,011 43,505 23,058 8,000

6,744 4,011 19,832 16,018 5,417

(6,744) (4,011) (19,832) (16,018) (5,417)


9,386 2,466 46,280 24,166 8,381

4,026 2,466 21,423 18,094 5,678

(4,026) (2,466) (21,423) (18,094) (5,678)


13,819 4,011 40,541 19,989 6,462

5,931 4,011 18,769 14,917 4,366

(5,931) (4,011) (18,769) (14,917) (4,366)

31 December 2010 Fire loss ratio for AY 2010 Motor Act loss ratio for AY 2010 Average claim cost Average claim frequency Average claim settlement period Company 31 December 2011 Fire loss ratio for AY 2011 Motor Act loss ratio for AY 2011 Average claim cost Average claim frequency Average claim settlement period 31 December 2010 Fire loss ratio for AY 2010 Motor Act loss ratio for AY 2010 Average claim cost Average claim frequency Average claim settlement period Claims development table The following tables show the estimate of cumulative incurred claims, including both claims notified and IBNR for each successive accident year at the end of reporting period, together with cumulative payments to-date. In setting provisions for claims, the Group and the Company give consideration to the probability and magnitude of future experience being more adverse that assumed and exercise the degree of caution in setting reserves when there is considerable uncertainty. In general, the uncertainty associated with the ultimate claims experience in an accident year is greatest when the accident year is at an early stage of development and the margin necessary to provide the necessary confidence in adequacy of provision is relatively at its highest. As claims develop and the ultimate cost of claims becomes more certain, the relative level of margin maintained should decrease.



40. Takaful risk management (continued) (b) General Takaful Fund (continued) Gross General Takaful contract liabilities for 2011 (Group): Before 2004 2005 2006 2007 2008 2009 2010 2011 Total Accident year RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At end of accident year One year later Two years later Three years later Four years later Five years later Six years later Seven years later

- 234,898 206,890 194,983 192,045 189,581 196,061 195,770

90,875 253,619 363,421 211,719 86,085 325,921 308,462 163,964 92,503 295,261 269,303 170,990 93,243 303,714 261,723 194,484 90,995 281,700 258,296 - 90,481 302,434 - - 93,519 - - - - - - -

151,643 159,147 202,227 - - - - -

256,026 325,009 - - - - - -

252,127 - - - - - - -

Current estimate of cumulative claims incurred

195,770

93,519

302,434

202,227

325,009

252,127 1,823,866

At end of accident year One year later Two years later Three years later Four years later Five years later Six years later Seven years later

(105,269) (146,665) (160,551) (169,189) (175,539) (179,759) (189,414) (190,692)

(27,691) (59,729) (75,143) (78,658) (82,292) (86,220) (87,386) -

(82,819) (190,943) (217,611) (229,294) (278,594) (289,121) - -

Cumulative payments to-date

(190,692)

(87,386) (289,121) (227,646) (152,230) (146,646) (174,690)

Gross General Takaful contract liabilities

5,078

6,133

13,313

258,296

194,484

(63,455) (50,291) (71,393) (101,724) (179,619) (109,315) (132,370) (174,690) (204,297) (142,410) (146,646) - (219,658) (152,230) - - (227,646) - - - - - - - - - - - - - - -

30,650

42,254

55,581

150,319

(58,326) - - - - - - -

(58,326) (1,326,737)

193,801 497,129

Additional risk margin

34,372

Gross General Takaful contract liabilities per financial position (Note 19(b)) 531,501

205

206



40. Takaful risk management (continued) (b) General Takaful Fund (continued) Net General Takaful contract liabilities for 2011 (Group): Before 2004 2005 2006 2007 2008 2009 2010 2011 Total Accident year RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At end of accident year One year later Two years later Three years later Four years later Five years later Six years later Seven years later

- 156,117 155,416 157,018 154,906 152,233 155,251 155,818

63,823 62,949 64,807 67,029 65,417 65,717 65,736 -

74,834 87,371 85,739 89,693 87,519 88,504 - -


155,818

65,736

88,504 115,828


(91,361) (120,067) (129,924) (137,151) (142,306) (145,529) (151,195) (152,082)

(20,616) (43,175) (52,501) (55,375) (58,309) (61,114) (62,286) -


(152,082) (62,286) (80,318) (107,236) (84,233) (92,171) (143,180) (53,570) (775,076)

Net General Takaful contract liabilities

3,736

3,450

(27,543) (57,372) (65,805) (71,801) (77,566) (80,318) - -

8,186

106,409 102,188 107,014 211,276 179,670 118,800 86,706 109,700 214,389 - 117,551 92,132 115,733 - - 119,607 98,093 - - - 115,828 - - - - - - - - - - - - - - - - - - -

(47,717) (85,148) (94,843) (102,483) (107,236) - - -

8,592

98,093 115,733 214,389 179,670 1,033,771

(33,040) (44,099) (84,167) (53,570) (60,702) (79,458) (143,180) - (74,740) (92,171) - - (84,233) - - - - - - - - - - - - - - - - - - -

13,860

23,562

71,209 126,100 258,695


18,789

Net General Takaful contract liabilities per financial position (Note 19(b)) 277,484



40. Takaful risk management (continued) (b) General Takaful Fund (continued) Gross General Takaful contract liabilities for 2011 (Company): Before 2004 2005 2006 2007 2008 2009 2010 2011 Total Accident year RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At end of accident year One year later Two years later Three years later Four years later Five years later Six years later Seven years later

- 232,067 202,503 188,570 185,148 181,351 187,560 186,429

87,174 81,409 84,764 82,581 80,838 79,250 82,361 -


186,429

82,361 278,157 236,734 174,438 154,775 287,375 220,483 1,620,752

238,449 309,434 278,073 283,222 260,068 278,157 - -

347,965 292,058 250,498 239,114 236,734 - - -

197,826 114,835 224,758 220,483 148,112 113,473 287,375 - 152,046 154,775 - - 174,438 - - - - - - - - - - - - - - - - - - -


(105,269) (144,046) (156,590) (164,115) (169,874) (173,628) (183,158) (184,254)


(184,254) (78,279) (269,285) (209,324) (135,664) (102,785) (148,043) (48,450) (1,176,084)

Gross General Takaful contract liabilities

2,175

(25,237) (55,885) (68,248) (71,408) (74,176) (77,747) (78,279) -

4,082

(70,359) (175,243) (199,717) (210,770) (259,972) (269,285) - -

8,872

(50,179) (164,274) (187,483) (202,364) (209,324) - - -

27,410

(36,888) (37,036) (79,900) (48,450) (94,478) (90,453) (148,043) - (127,247) (102,785) - - (135,664) - - - - - - - - - - - - - - - - - - -

38,774

51,990 139,332 172,033 444,668


32,613

Gross General Takaful contract liabilities per financial position (Note 19(b)) 477,281

207

208



40. Takaful risk management (continued) (b) General Takaful Fund (continued) Net General Takaful contract liabilities for 2011 (Company): Before 2004 2005 2006 2007 2008 2009 2010 2011 Total Accident year RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At end of accident year One year later Two years later Three years later Four years later Five years later Six years later Seven years later

- 153,584 151,141 150,920 148,379 144,355 147,102 146,832

60,649 58,964 57,830 57,114 56,008 55,232 55,324 -

62,510 94,925 74,089 106,623 71,772 102,978 72,410 101,230 69,085 98,655 67,460 - - - - -

91,338 74,215 76,563 81,426 - - - -

90,320 193,764 164,771 89,557 194,943 - 93,924 - - - - - - - - - - - - - - - - -


146,832

55,324

67,460

98,655

81,426

93,924 194,943 164,771 903,335


(91,361) (117,724) (126,254) (132,366) (136,985) (139,725) (145,266) (145,973)

(18,690) (40,022) (46,296) (48,801) (50,870) (53,316) (53,854) -

(17,925) (44,872) (51,119) (56,474) (62,130) (63,703) - -

(37,770) (73,387) (81,612) (88,771) (92,652) - - -


(145,973) (53,854) (63,703) (92,652) (70,969) (73,271) (125,883) (44,725) (671,030)

Net General Takaful contract liabilities

859

1,470

3,757

6,003

(22,618) (29,194) (68,055) (44,725) (49,154) (62,390) (125,883) - (62,879) (73,271) - - (70,969) - - - - - - - - - - - - - - - - - - -

10,457

20,653

69,060 120,046 232,305


17,200

Net General Takaful contract liabilities per financial position (Note 19(b)) 249,505



41. Financial instruments Comparative figures have not been presented for 31 December 2010 for the disclosures shown below by virtue of the exemption provided in paragraph 44G of FRS 7. 41.1 Categories of financial instruments The table below provides an analysis of financial instruments categorised as follows: (a) Loans and receivables (LAR); (b) Fair value through profit or loss (FVTPL) - Held for trading (HFT); (c) Available-for-sale financial assets (AFS); (d) Held-to-maturity financial assets (HTM); and (e) Other financial liabilities measured at amortised cost (OL) Shareholders’ Family Investment General Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Financial assets Group AFS financial assets Other investments FVTPL financial assets Other investments HTM financial assets Other investments

264,293

2,554,428

-

473,623

3,292,344

-

-

174,392

-

174,392

4,152

270,931

-

34,496

309,579

Loans and receivables Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Qardh receivables Cash and cash equivalents

-

1,279

-

215,374

216,653

174,946 - 277 61,265

563,214 61,487 - 265,819

455 865 - 11,673

175,498 47,462 - 47,770

914,113 109,814 277 386,527

236,488

891,799

12,993

486,104

1,627,384

209

210



41. Financial instruments (continued) 41.1 Categories of financial instruments (continued) Shareholders’ Family Investment General Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Financial assets Company AFS financial assets Other investments

255,631

2,475,921

-

472,609

3,204,161

FVTPL financial assets Other investments

-

-

108,913

-

108,913

HTM financial assets Other investments

-

241,904

-

32,766

274,670

Loans and receivables Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Cash and cash equivalents

-

696

-

190,079

190,775

135,374 - 27,811

548,062 53,490 180,337

455 865 8,110

164,076 31,496 32,741

847,967 85,851 248,999

163,185

782,585

9,430

418,392

1,373,592

Group Provision for outstanding claims Takaful payables Other payables

- - 65,997

30,237 18,863 133,183

212 633 3,887

387,642 26,041 73,422

418,091 45,537 276,489

65,997

182,283

4,732

487,105

740,117

Company Provision for outstanding claims Takaful payables Other payables

- - 55,268

26,150 15,297 120,320

212 633 3,887

340,045 23,522 46,075

366,407 39,452 225,550

55,268

161,767

4,732

409,642

631,409

Financial liabilities - Other financial liabilities measured at amortised cost



41. Financial instruments (continued) 41.2 Net gains and losses arising from use of financial instruments Shareholders’ Family Investment General Fund Takaful -linked Takaful 31 December 2011 RM’000 RM’000 RM’000 RM’000 Group Net gains/(losses) arising on: FVTPL financial assets - recognised in profit or loss

-

-

9,749

-

AFS financial assets - recognised in other comprehensive income - recognised in participants’ fund - recognised in profit or loss

(3,514) - 13,865

- 5,370 192,039

- - -

(9,285) 35,496

HTM financial assets LAR

10,351 29 7,460

197,409 7,201 28,533

- - 283

26,211 977 28,199

17,840

233,143

10,032

55,387

Net gains/(losses) arising on: FVTPL financial assets - recognised in profit or loss

-

-

7,133

-

AFS financial assets - recognised in other comprehensive income - recognised in participants’ fund - recognised in profit or loss

(3,445) - 12,962

- 8,118 183,067

- - -

(9,218) 35,250

HTM financial assets LAR

9,247 29 6,477

191,185 7,201 23,955

- - 283

26,032 977 24,138

15,753

222,341

7,416

51,147

Company

211

212



41. Financial instruments (continued) 41.3 Financial risk management The Group and the Company have exposure to the following risks arising from its use of financial instruments: - Credit risk - Liquidity risk - Market risk (currency risk, profit rate risk, price risk) - Operational risk 41.4 Credit risk Credit risk is the potential financial loss resulting from the failure of a customer, an intermediary or counterparty to settle its financial and contractual obligations to the Group and the Company as and when they fall due. The Group’s and the Company’s portfolio of Islamic debt securities, and to a lesser extent short-term and other investments, are subject to credit risk. This risk is defined as the potential loss resulting from adverse changes in a borrower’s ability to repay the debt. The Group’s and the Company’s objective is to earn competitive relative returns by investing in a diversified portfolios of securities. Management has an investment credit risk policy in place. Limits are established to manage credit quality and concentration risk. The Group and the Company have takaful and other receivables balances that are subject to credit risk. Among the most significant of these are retakaful recoveries. To mitigate the risk of the counterparties not paying the amount due, the Group and the Company have established certain business and financial guidelines for retakaful approval, incorporating ratings by major agencies and considering currently available market information. The Group and the Company also periodically review the financial stability of retakaful companies from public and other sources and the settlement trend of amounts due from retakaful companies. Cash and deposits are generally placed with banks and financial institutions licensed under the Banking and Financial Institutions Act 1989 and the Islamic Banking Act 1983 which are regulated by Bank Negara Malaysia. The Group and the Company manage individual exposures as well as concentration of credit risks. At end of the reporting period, there were no significant concentration of credit risks, other than investments in Islamic debts securities issued by single issuer amounted to RM118,169,600.



41. Financial instruments (continued) 41.4 Credit risk (continued) Credit exposure The table below shows the maximum exposure to credit risk for the components recognised in the statements of Financial Position. Shareholders’ Family Investment General 31 December 2011 Fund Takaful -linked Takaful Total Group RM’000 RM’000 RM’000 RM’000 RM’000 AFS financial assets Islamic debt securities Malaysian Government Islamic papers FVTPL financial assets Islamic debt securities HTM financial assets Islamic debt securities Malaysian Government Islamic papers LAR Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Qardh receivables Cash and cash equivalents

-

1,279

174,946 - 277 61,265

362,303

111,372

1,502,842

-

287,341

1,901,555

10,291

492,315

-

89,100

591,706

-

-

23,517

-

23,517

4,152

158,088

-

1,730

163,970

112,843

32,766

145,609

-

215,374

216,653

563,214 61,487 - 265,819

455 865 - 11,673

175,498 47,462 - 47,770

914,113 109,814 277 386,527

3,157,887

36,510

897,041

4,453,741

-

213

214



41. Financial instruments (continued) 41.4 Credit risk (continued) Credit exposure (continued) Shareholders’ Family Investment General 31 December 2011 Fund Takaful -linked Takaful Total Company RM’000 RM’000 RM’000 RM’000 RM’000 AFS financial assets Islamic debt securities Malaysian Government Islamic papers FVTPL financial assets Islamic debt securities HTM financial assets Islamic debt securities Malaysian Government Islamic papers LAR Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Cash and cash equivalents

108,506

1,473,576

-

287,341

1,869,423

10,291

492,315

-

89,100

591,706

-

-

15,260

-

15,260

-

129,061

-

-

129,061

-

112,843

-

32,766

145,609

-

696

-

190,079

190,775

135,374 - 27,811

548,062 53,490 180,337

455 865 8,110

164,076 31,496 32,741

847,967 85,851 248,999

281,982

2,990,380

24,690

827,599

4,124,651



41. Financial instruments (continued) 41.4 Credit risk (continued) Credit exposure by credit rating The table below provides information regarding the credit risk exposure of the the Group and the Company by classifying assets according to the Group’s and the Company’s internal credit ratings of counterparties. Neither Neither 31 December past-due Past-due past-due Past-due 2011 nor but not nor but not Shareholders’ impaired impaired Impaired Total impaired impaired Impaired Total Fund RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 AFS financial assets Islamic debt securities 111,372 Malaysian Government Islamic papers 10,291 HTM financial assets Islamic debt securities 4,152 LAR Loans and receivables, excluding takaful receivables 167,970 Qardh receivables - Cash and cash equivalents 61,265

355,050

-

-

111,372

108,506

-

-

108,506

-

-

10,291

10,291

-

-

10,291

-

-

4,152

-

-

-

-

- -

9,078 277

177,048 277

128,401 -

- -

8,796 -

137,197 -

-

-

61,265

27,811

-

-

27,811

-

9,355

364,405

275,009

-

8,796

283,805

215

216



41. Financial instruments (continued) 41.4 Credit risk (continued) Credit exposure by credit rating (continued) Neither Neither 31 December past-due Past-due past-due Past-due 2011 nor but not nor but not Family Takaful impaired impaired Impaired Total impaired impaired Impaired Total Fund RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 AFS financial assets Islamic debt securities 1,502,842 Malaysian Government Islamic papers 492,315 HTM financial assets Islamic debt securities 158,088 Malaysian Government Islamic papers 112,843 LAR Retakaful assets 1,279 Loans and receivables, excluding takaful receivables 563,112 Takaful receivables 51,896 Cash and cash equivalents 265,819

3,148,194

-

- 1,502,842 1,473,576

-

- 1,473,576

-

-

492,315

492,315

-

-

492,315

-

-

158,088

129,061

-

-

129,061

-

-

112,843

112,843

-

-

112,843

-

-

1,279

696

-

-

696

- 15,148

1,046 10

564,158 67,054

547,960 49,704

- 9,217

1,046 10

549,006 58,931

-

-

265,819

180,337

-

-

180,337

1,056 3,164,398 2,986,492

9,217

15,148

1,056 2,996,765



41. Financial instruments (continued) 41.4 Credit risk (continued) Credit exposure by credit rating (continued) Neither Neither 31 December past-due Past-due past-due Past-due 2011 nor but not nor but not General Takaful impaired impaired Impaired Total impaired impaired Impaired Total Fund RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 AFS financial assets Islamic debt securities 287,341 Malaysian Government Islamic papers 89,100 HTM financial assets Islamic debt securities 1,730 Malaysian Government Islamic papers 32,766 LAR Retakaful assets 215,374 Loans and receivables, excluding takaful receivables 175,399 Takaful receivables 33,035 Cash and cash equivalents 47,770

882,515

-

-

287,341

287,341

-

-

287,341

-

-

89,100

89,100

-

-

89,100

-

-

1,730

-

-

-

-

-

-

32,766

32,766

-

-

32,766

-

-

215,374

190,079

-

-

190,079

- 22,069

1,123 1,880

176,522 56,984

163,977 28,130

- 10,930

1,123 1,880

165,100 40,940

-

-

47,770

32,741

-

-

32,741

22,069

3,003

907,587

824,134

10,930

3,003

838,067

217

218



41. Financial instruments (continued) 41.4 Credit risk (continued) Credit exposure by credit rating (continued) The table below provides information regarding the credit risk exposure of the Group and the Company by classifying assets according to the Rating Agency of Malaysia’s (RAM) credit ratings of counterparties. AAA is the highest possible rating. Assets that fall outside the range of AAA to A are classified as speculative grade. 31 December 2011 AAA AA A Not-rated Unit-linked Total Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 AFS financial assets Islamic debt securities Malaysian Government Islamic papers FVTPL financial assets Islamic debt securities HTM financial assets Islamic debt securities Malaysian Government Islamic papers LAR Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Qardh receivables Cash and cash equivalents

691,762 -

903,349 -

-

-

-

-

23,517

23,517

48,423 -

- -

- 115,547 - 145,609*

- -

163,970 145,609

-

-

-

216,653

-

216,653

19,094 - - 55,762

137,081 - - 167,481

393,560 - - 17,446

363,923 108,949 277 134,165

455 865 - 11,673

914,113 109,814 277 386,527

815,041 1,207,911

25,846 280,598 - 591,706*

436,852 1,957,427

- 1,901,555 - 591,706

36,510 4,453,741

* Malaysian Government Islamic paper is not rated by RAM but instead is rated A- based on Malaysia Sovereign rating accorded by Standard & Poor.



41. Financial instruments (continued) 41.4 Credit risk (continued) Credit exposure by credit rating (continued) 31 December 2011 AAA AA A Not-rated Unit-linked Total Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 AFS financial assets Islamic debt securities Malaysian Government Islamic papers FVTPL financial assets Islamic debt securities HTM financial assets Islamic debt securities Malaysian Government Islamic papers LAR Retakaful assets Loans and receivables, excluding takaful receivables Takaful receivables Cash and cash equivalents

691,762

903,349

25,846

248,466

-

-

- 591,706*

-

-

-

48,423

-

-

-

- 1,869,423 -

591,706

-

15,260

15,260

80,638

-

129,061

-

- 145,609*

-

145,609

-

-

-

190,775

-

190,775

19,094 - 55,762

137,081 - 167,481

393,560 - 17,446

297,777 84,986 200

455 865 8,110

847,967 85,851 248,999

815,041 1,207,911

436,852 1,640,157

24,690 4,124,651

* Malaysian Government Islamic paper is not rated by RAM but instead is rated A- based on Malaysia Sovereign rating accorded by Standard & Poor.

219

220



41. Financial instruments (continued) 41.4 Credit risk (continued) Age analysis of takaful receivables past-due but not impaired A financial asset is deemed past-due when the counterparty has failed to make payment when the outstanding amount is contractually due. Receivables past-due but not impaired includes contribution due and claims recovery from retakaful which remained outstanding after the contractual due date for more than 6 months. The age analysis of takaful receivables past-due but not impaired as at the end of the reporting period was as follow: 1 - 30 days 31 - 60 days 61 - 90 days 91 - 180 days > 180 days Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group Family Takaful Fund

5,778

1,195

1,162

1,611

5,402

15,148


8,490

764

-

4,482

8,333

22,069

Family Takaful Fund

1,298

900

870

1,072

5,077

9,217


31

15

-

2,940

7,944

10,930

Company

Impairment loss of takaful receivables The Group and the Company assess impairment on an individual and collective basis. The Group and the Company will assess on a case by case basis, on whether there is any objective evidence that the outstanding due is impaired for contribution due and claims recovery that are considered individually significant. The criteria that the Group and the Company use to determine whether there is objective evidence of impairment for those selected for individual assessment include: (i) contribution due or claims recovery past-due for 6 months or more and where outstanding receivable is above RM470,000 and RM200,000 for Family and General Takaful receivables respectively; (ii) significant financial difficulty of customer/intermediaries;



41. Financial instruments (continued) 41.4 Credit risk (continued) Impairment loss of takaful receivables (continued) (iii) long outstanding balances where these are disputed and not resolved; and (iv) breach of contract, such as a default or delinquency in payments. The Group and the Company record impairment allowance for loans and receivables and insurance receivables in separate “Allowance for Impairment” accounts. Unless the Group and the Company are satisfied that recovery of the amount is possible, the amount considered irrecoverable is written off against the receivables directly. A reconciliation of the allowance for impairment losses for takaful receivables was as follows: Family General Takaful Takaful Total Group Notes RM’000 RM’000 RM’000 At 1 January 2011 Effect of adoption of FRS 139 - reversal of allowances for doubtful debts - allowances for impaired debts

9,434

26,719

36,153

(9,434) 9,434

(26,719) 26,719

(36,153) 36,153

At 1 January 2011, restated Writeback of allowance for impaired debts 30

9,434 (3,867)

26,719 (17,197)

36,153 (21,064)

At 31 December 2011

5,567

9,522

15,089

13

Company At 1 January 2011 Effect of adoption of FRS 139 - reversal of allowances for doubtful debts - allowances for impaired debts

7,976

23,047

31,023

(7,976) 7,976

(23,047) 23,047

(31,023) 31,023

At 1 January 2011, restated Writeback of allowance for impaired debts 30

7,976 (2,535)

23,047 (13,603)

31,023 (16,138)

At 31 December 2011

5,441

9,444

14,885

13

221

222



41. Financial instruments (continued) 41.4 Credit risk (continued) Impairment loss of other financial assets A reconciliation of the allowance for impairment losses for other financial assets was as follows: Shareholders’ Family General Fund Takaful Takaful Total Group Notes RM’000 RM’000 RM’000 RM’000 At 1 January 2011 8 Effect of adoption of FRS 139 - reversal of allowances for doubtful debts - allowances for impairment loss

2,923

2,986

3,066

8,975

(2,923) 2,923

(2,986) 2,986

(3,066) 3,066

(8,975) 8,975

At 1 January 2011, restated Write back of allowance for impairment loss 30

2,923

2,986

3,066

8,975

(821)

(2,042)

(2,042)

(4,905)

At 31 December 2011

12

2,102

944

1,024

4,070

At 1 January 2011 8 Effect of adoption of FRS 139 - reversal of allowances for doubtful debts - allowances for impairment loss

2,644

2,986

3,066

8,696

(2,644) 2,644

(2,986) 2,986

(3,066) 3,066

(8,696) 8,696

At 1 January 2011, restated Write back of allowance for impairment loss 30

2,644

2,986

3,066

8,696

(821)

(2,042)

(2,042)

(4,905)

At 31 December 2011

1,823

944

1,024

3,791

Company

12



41. Financial instruments (continued) 41.5 Liquidity risk Liquidity risk is the risk that the Group and the Company will encounter difficulty in meeting obligations associated with financial instruments. In respect of catastrophic events, there is also a liquidity risk associated with the timing differences between gross cash outflows and expected retakaful recoveries. The following policies and procedures are in place to mitigate the Group’s and the Company’s exposure to liquidity risk: - The Group and the Company-wide liquidity risk policy setting out the evaluation and determination of the components of liquidity risk of the Group and the Company. Compliance with the policy is monitored and reported monthly and exposures and breaches are reported to the Group’s and the Company’s Risk Management Committee as soon as practicable. The policy is regularly reviewed or pertinence and for changes in the risk environment. - Setting up guidelines on asset allocations, portfolio limit structures and maturity profiles of assets, in order to ensure sufficient funding is available to meet insurance and investment contracts obligations. - Setting up contingency funding plans which specify minimum proportions of funds to meet emergency calls as well as specifying events that would trigger such plans. - The Company’s catastrophe excess of loss retakaful contracts contains clauses permitting the immediate draw down of funds to meet claims payments should claims events exceed certain amount.

223

224



41. Financial instruments (continued) 41.5 Liquidity risk (continued) Maturity profiles The table below summarises the maturity profile of the financial liabilities of the Group and the Company based on remaining undiscounted contractual obligations, including profit payable. For takaful contract liabilities, maturity profiles are determined based on estimated timing of net cash outflows from the recognised takaful liabilities. Investment-linked liabilities are repayable or transferable on demand and are included in the “up to a year” column. Carrying Up to 1-3 3 - 5 5 - 15 Over No value a year* years years years 15 years Maturity Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Shareholders’ Fund Group Other payables

65,997

31,871

26,848

55,268

28,966

26,302

53

1,758

5,312

155

65,997

Company Other payables

-

* expected utilisation or settlement is within 12 months from the reporting date.

-

-

-

55,268



41. Financial instruments (continued) 41.5 Liquidity risk (continued) Maturity profiles (continued) Carrying Up to 1-3 3-5 No value a year* years years Maturity Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Family Takaful Group Provision for outstanding claims Takaful payables Other payables

30,237 18,863 133,183

30,237 17,812 130,753

- 1,051 1,173

- - 132

- - 1,125

30,237 18,863 133,183

182,283

178,802

2,224

132

1,125

182,283

Provision for outstanding claims Takaful payables Other payables

26,150 15,297 120,320

26,150 14,246 119,015

- 1,051 1,173

- - 132

- - -

26,150 15,297 120,320

161,767

159,411

2,224

132

-

161,767

Company


225

226



41. Financial instruments (continued) 41.5 Liquidity risk (continued) Maturity profiles (continued) Carrying Up to 1-3 3-5 5-15 value a year* years years years Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 General Takaful Group Provision for outstanding claims Takaful payables Other payables

387,642 26,041 73,422

180,685 23,522 69,965

132,135 2,519 1,797

54,628 - 623

20,194 - 1,037

387,642 26,041 73,422

487,105

274,172

136,451

55,251

21,231

487,105

Company Provision for outstanding claims Takaful payables Other payables

340,045 23,522 46,075

136,600 23,522 45,841

128,623 - 234

54,628 - -

20,194 - -

340,045 23,522 46,075

409,642

205,963

128,857

54,628

20,194

409,642




41. Financial instruments (continued) 41.6 Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three (3) types of risk - foreign exchange rates (Currency risk), market profit rates/profit yields (Profit Yield risk) and market prices (Price risk). The key features of the Group’s and the Company’s market risk management practices and policies are as follows: - A Group and the Company-wide market risk policy setting out the evaluation and determination of components of market risk for the Group and the Company. Compliance with the policy is monitored and reported monthly to the Risk Management Committee (“RMC”) and exposures and breaches are reported as soon as practicable. - Set asset allocation, portfolio limit structure and diversification benchmark to ensure that assets back specific contract liabilities and that assets are held to deliver income and gains for certificateholders in line with terms of the respective contracts expectations of policies. The Group’s and the Company’s policies on asset allocation, portfolio limit structure and diversification benchmark have been set in line with Group’s and Company’s risk management policy after taking cognisance of the regulatory requirements in respect of maintenance of assets and solvency. The Group and the Company also issue unit-linked investment policies. In the unit-linked business, the certificate holders bear investment risk on the assets held in the unit-linked funds as the certificate benefits are directly linked to value of the assets in the funds. The Group’s and Company’s exposure to market risk on this business is limited to the extent that income arising from asset management charges is based on the value of the assets in the funds. 41.7 Currency risk Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s and the Company’s primary transactions are carried out in Ringgit Malaysia (RM) and its exposure to foreign exchange risk arises principally with respect to US Dollar (USD). As the Group’s and Company’s business is conducted primarily in Malaysia, the Group’s and the Company’s financial assets are also primarily maintained in Malaysia as required under the Insurance Act, 1996, and hence, primarily denominated in the same currency (the local RM) as its insurance and investment contract liabilities. Accordingly, the main foreign exchange risk from recognised assets and liabilities arises from transactions other than those in which insurance and investment contract liabilities are expected to be settled. As the Group’s and the Company’s main foreign exchange risk from recognised assets and liabilities arises from reinsurance transactions for which the balances are expected to be settled and realised in less than a year, the impact arising from sensitivity in foreign exchange rates is deemed minimal as the Group and the Company has no significant concentration of foreign currency risk. The Group’s and the Company’s exposure to currency risk is immaterial in the context of the financial statements and hence, sensitivity analysis is not presented.

227

228



41. Financial instruments (continued) 41.8 Profit yield risk Profit yield risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market profit yield. Floating rate/yield instruments expose the Group and the Company to cash flow risk, whereas fixed rate/yield instruments expose the Group and the Company to fair value risk. The Group’s and the Company’s profit risk policy requires Management to manage the risk by maintaining an appropriate mix of variable and fixed rate/yield instruments. The policy also requires Management to manage the maturities of profitbearing financial assets and liabilities. Floating rate/yield instruments will be re-priced at intervals of not more than one (1) year. Profit on fixed rate/yield instruments is priced at inception of the financial instrument and is fixed until maturity. The profit yield profile of the Group’s and the Company’s significant profit-bearing financial instruments, based on carrying amounts as at the end of the reporting period was as follow: Shareholders’ Family Investment General Fund Takaful -linked Takaful Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 Fixed rate instruments Group AFS financial assets FVTPL financial assets HTM financial assets LAR

121,663 - 4,152 197,444

1,995,157 - 270,931 766,836

- 23,517 - -

376,441 - 34,496 203,542

2,493,261 23,517 309,579 1,167,822

323,259

3,032,924

23,517

614,479

3,994,179

AFS financial assets FVTPL financial assets HTM financial assets LAR

118,797 - - 136,402

1,965,891 - 241,904 675,340

- 15,260 - -

376,441 - 32,766 181,294

2,461,129 15,260 274,670 993,036

255,199

2,883,135

15,260

590,501

3,744,095

Company



41. Financial instruments (continued) 41.8 Profit yield risk (continued) The Group and the Company have no significant concentration of profit yield risk.

A change of 50 basis points in profit rates at the end of the reporting period would have increased/(decreased) other comprehensive income/equity, Family and General Takaful participant’s fund by the amounts shown below. This analysis assumes that all other variables remain constant. Group Company Impact on Impact on Change in profit Impact on profit Impact on 31 December 2011 variables before tax equity* before tax equity* Shareholders’ Fund RM’000 RM’000 RM’000 RM’000 AFS financial assets AFS financial assets

+50bps -50bps

- -

(1,580) 2,347

- -

(1,551) 2,318

* impact on Equity reflects adjustments for tax, when applicable.

Group Company Impact on Impact on Impact on Impact on Change in operating participants’ operating participants’ variables surplus fund surplus fund 31 December 2011 RM’000 RM’000 RM’000 RM’000 Family Takaful Fund AFS financial assets AFS financial assets

+50bps -50bps

- -

(64,777) 70,051

- -

(64,501) 69,775

Investment-linked Fund FVTPL financial assets FVTPL financial assets

+50bps -50bps

(285) 290

(285) 290

(247) 252

(247) 252

General Takaful Fund AFS financial assets AFS financial assets

+50bps -50bps

- -

(8,257) 8,483

The Group and the Company have no significant concentration of profit yield risk.

- -

(8,257) 8,483

229

230



41. Financial instruments (continued) 41.9 Price risk Equity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from profit yield risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or factors affecting similar financial instruments traded in the market. The Group’s and the Company’s equity price risk exposure relates to financial assets whose values will fluctuate as a result of changes in market prices (excluding those investment securities held for the account of unit-linked business). The Group’s and the Company’s price risk policy requires it to manage such risks by setting and monitoring objectives and constraints on investments, diversification plans, limits on investments in each country, sector, market and issuer, having regard also to such limits stipulated by BNM. The Group and the Company comply with BNM stipulated limits during the financial year and has no significant concentration of price risk. The analysis below is performed for reasonably possible movements in key variables with all other variables held constant, showing the impact on OCI/Equity for Shareholders’ Fund, and showing the impact on operating surplus/participants’ fund for Investment-linked Fund, and participants’ fund for Family Takaful Fund and General Takaful Fund accordingly. The correlation of variables will have a significant effect in determining the ultimate impact on price risk, but to demonstrate the impact due to changes in variables, variables had to be changed on individual basis. It should be noted that movements in these variables are non-linear. Group Company Impact on Impact on Change in profit Impact on profit Impact on 31 December 2011 variables before tax equity* before tax equity* Shareholders’ Fund RM’000 RM’000 RM’000 RM’000 Market price Market price

+15% -15%

- -

10,516 (10,516)

- -

9,869 (9,869)

* impact on Equity reflects adjustments for tax, when applicable. Group Company Impact on Impact on Impact on Impact on Change in operating participants’ operating participants’ variables surplus fund surplus fund 31 December 2011 RM’000 RM’000 RM’000 RM’000 Family Takaful Fund Market price Market price

+15% -15%

- -

57,693 (57,693)

- -

50,307 (50,307)



41. Financial instruments (continued) 41.9 Price risk (continued) Group Company Impact on Impact on Impact on Impact on Change in operating participants’ operating participants’ variables surplus fund surplus fund 31 December 2011 RM’000 RM’000 RM’000 RM’000 Investment-linked Fund Market price Market price

+15% -15%

13,045 (13,045)

13,045 (13,045)

4,462 (4,462)

4,462 (4,462)

General Takaful Fund Market price Market price

+15% -15%

- -

9,521 (9,521)

- -

9,369 (9,369)

41.10 Operational risk Operational risk is the risk of loss arising from system failure, human error, fraud, or external events. When controls fail to perform, operational risks can cause damage to reputation, have legal or regulatory implications or can lead to financial loss. The Group and the Company cannot expect to eliminate all operational risks but by initiating a rigorous control framework and by monitoring and responding to potential risks, the Group and the Company is able to manage the risks. Controls include effective segregation of duties, accesss controls, authorisation and reconciliation procedures, staff training and evaluation procedures, including the use of Internal Audit. Business risks, such as changes in environment, technology and the industry are monitored through the Group’s and the Company’s strategic planning and budgeting process. 41.11 Fair value hierarchy The table below analyses those financial instruments carried at fair value by their valuation method. The different levels have been defined as follows: • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). .

231

232



41. Financial instruments (continued) 41.11 Fair value hierarchy (continued) Level 1 Level 2 Level 3 Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 Group Shareholders’ Fund AFS financial assets Equity securities Unit trusts Islamic debts securities Investment in linked funds Malaysian Government Islamic papers

37,107 18,148 - 38,222 -

- - 111,372 - 10,291

427 48,726 - - -

37,534 66,874 111,372 38,222 10,291

93,477

121,663

49,153

264,293

Family Takaful Fund AFS financial assets Equity securities Unit trusts Islamic debts securities Malaysian Government Islamic papers

317,066 67,556 - -

- - 1,502,842 492,315

- 174,649 - -

317,066 242,205 1,502,842 492,315

384,622

1,995,157

174,649

2,554,428

Investment-linked Fund FVTPL financial assets Equity securities Investment units in commodity, equity and fixed income closed end fund Unit trusts Islamic debts securities

60,998

-

-

60,998

- 25,971 -

- - 23,517

63,906 - -

63,906 25,971 23,517

86,969

23,517

63,906

174,392

General Takaful Fund AFS financial assets Equity securities Unit trusts Islamic debts securities Malaysian Government Islamic papers

57,410 6,061 - -

- - 287,341 89,100

- 33,711 - -

57,410 39,772 287,341 89,100

63,471

376,441

33,711

473,623



41. Financial instruments (continued) 41.11 Fair value hierarchy (continued) Level 1 Level 2 Level 3 Total 31 December 2011 RM’000 RM’000 RM’000 RM’000 Company Shareholders’ Fund AFS financial assets Equity securities Unit trusts Islamic debts securities Investment in linked funds Malaysian Government Islamic papers

36,572 12,934 - 38,222 -

- - 108,506 - 10,291

380 48,726 - - -

36,952 61,660 108,506 38,222 10,291

87,728

118,797

49,106

255,631

Family Takaful Fund AFS financial assets Equity securities Unit trusts Islamic debts securities Malaysian Government Islamic papers

316,651 18,730 - -

- - 1,473,576 492,315

- 174,649 - -

316,651 193,379 1,473,576 492,315

335,381

1,965,891

174,649

2,475,921

29,747

-

-

29,747

- -

- 15,260

63,906 -

63,906 15,260

29,747

15,260

63,906

108,913

General Takaful Fund AFS financial assets Equity securities Unit trusts Islamic debts securities Malaysian Government Islamic papers

57,410 5,047 - -

- - 287,341 89,100

- 33,711 - -

57,410 38,758 287,341 89,100

62,457

376,441

33,711

472,609

Investment-linked Fund FVTPL financial assets Equity securities Investment units in commodity, equity and fixed income closed end fund Islamic debts securities

233

234



42. Operating leases Leases as lessee Total future minimum lease payments under non-cancellable operating leases are as follows: Group and Company 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 RM’000 RM’000 Non-related parties: Less than one year Between one and five years

9,086 9,094

1,195 1,585

Related party: Less than one year Between one and five years

18,180

2,780

99 -

38 493

99

531

18,279

3,311

Lease commitments are wholly payable from the Shareholders’ Fund. The Group and the Company lease a number of computers and equipment under operating leases. The leases typically run an initial period of five years, with an option to renew the lease after that date. Leases as lessor The Group and the Company lease out their investment properties (see Note 4). The future minimum lease receivables under noncancellable leases are as follows: Shareholders’ Fund Family Takaful General Takaful 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Non-related parties: Less than one year Between one and five years

216 173

181 337

6,994 8,921

2,925 4,782

718 819

376 577

389

518

15,915

7,707

1,537

953


788 602

449 618

1,741 1,043

1,338 582

512 468

282 656

1,390

1,067

2,784

1,920

980

938

1,779

1,585

18,699

9,627

2,517

1,891



42. Operating leases Leases as lessor (continued) Shareholders’ Fund Family Takaful General Takaful 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 31.12.2011 31.12.2010 Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Non-related parties: Less than one year Between one and five years

187 173

176 337

6,969 8,826

2,852 4,782

718 819

376 577

360

513

15,795

7,634

1,537

953


788 602

449 618

1,082 1,043

879 582

512 468

282 656

1,390

1,067

2,125

1,461

980

938

1,750

1,580

17,920

9,095

2,517

1,891

43. Capital commitments Group and Company 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 RM’000 RM’000 Authorised by the Directors and contracted for

172

23,623

44. Related parties For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities. Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel includes all the Directors of the Group, and certain members of senior management of the Group. Compensation paid to key management personnel have been disclosed in Note 32.

235

236



44. Related parties (continued) Significant transactions with related parties during the year/period, other than key management personnel compensation, are as follows: Group Company 1.1.2011 to 1.7.2009 to 1.1.2011 to 1.7.2009 to 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Ultimate holding company Contribution income for Family Takaful Contribution income for General Takaful Claims paid for Family Takaful Claims paid for General Takaful Holding company Dividend paid Related companies Contribution income for Family Takaful Contribution income for General Takaful Claims paid for Family Takaful Claims paid for General Takaful Investment income Lease rental expense Rental income Commission paid Bank commissions

452 2,149 2,051 871

866 1,891 - -

452 2,149 2,051 871

866 1,891 -

11,680

11,348

11,680

11,348

15 1,793 2,693 140 1,178 394 2,642 196 325

1,326 3,023 - - 933 591 4,414 - 928

15 1,793 2,693 140 1,178 394 2,642 196 325

1,326 3,023 933 591 4,414 928

The significant outstanding balances of the Group and of the Company as at 31 December 2011 with its related parties, are as follows: Shareholders’ Fund Family Takaful General Takaful Group Company Group Company Group Company 31 December 2011 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Related companies Bank balances Fixed and call deposits

3,765 1,464

3,765 1,464

8,801 9,899

8,801 9,899

4,153 6,620

4,153 6,620

5,229

5,229

18,700

18,700

10,773

10,773

Bank balances Fixed and call deposits

167 -

348 -

1,019 34,896

1,516 34,896

23 7,220

7,220

167

348

35,915

36,412

7,243

7,220

31 December 2010 Related companies



45. Changes in accounting policies The following are the key changes in accounting policies at the beginning of the financial year. 45.1 FRS 8, Operating Segments As of 1 January 2011, the Group determines and presents operating segments based on the information that internally is provided to the Group Managing Director, who is the Group’s chief operating decision maker. This change in accounting policy is due to the adoption of FRS 8. Previously, operating segments were determined and presented in accordance with FRS 1142004, Segment Reporting. 45.2 FRS 139, Financial Instruments: Recognition and Measurement The adoption of FRS 139 has resulted in several changes to accounting policies relating to the recognition and measurement of the financial instruments. Significant changes in accounting policies are as follows: (i) Investments in equity securities Prior to the adoption of FRS 139, investments in non-current equity securities, other than investments in subsidiaries and associates were measured at cost less allowance for diminution in value which is other than temporary. With the adoption of FRS 139, quoted investments in non-current equity securities (other than investments in subsidiaries and associates are now categorised and measured as fair value through profit or loss) or as available-for-sale as detailed in Note 2(f)(ii). Prior to the adoption of FRS 139, current equity securities were carried at the lower of cost and market value, determined on an aggregate portfolio basis by category of investments. With the adoption of FRS 139, current equity securities are now categorised and measured as fair value through profit or loss or as available-for-sale as detailed in Note 2(f)(ii). The financial effect of the changes in accounting policies set out above is disclosed in Note 9(d), Note 23(a) and Note 23(b) to the financial statements and statements of changes in equity. (ii) Investments in Islamic debt securities Prior to the adoption of FRS 139, investments in Islamic debt securities were measured at amortised cost using the effective interest method less allowance for diminution in value which is other than temporary. With the adoption of FRS 139, investments in Islamic debt securities are now categorised and measured at fair value through profit or loss, available-for-sale or at amortised cost as detailed in Note 2(f)(ii). The financial effect of the changes in accounting policies set out above is disclosed in Note 9(d), Note 23(a) and Note 23(b) to the financial statements and statements of changes in equity.

237

238



45. Changes in accounting policies (continued) 45.2 FRS 139, Financial Instruments: Recognition and Measurement (continued) (iii) Impairment of trade and other receivables Prior to the adoption of FRS 139, an allowance for doubtful debts was made when a receivable is considered doubtful where receivables had been outstanding for more than six months. With the adoption of FRS 139, an impairment loss is recognised for takaful and other receivables and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective profit rate. In accordance to the transitional provisions of FRS 139 for first-time adoption, adjustments arising from remeasuring the financial instruments at the beginning of the financial year were recognised as adjustments of the opening balance of retained earnings or accumulated surplus of the Family and General Takaful Funds. Comparatives are not adjusted. As such, adjustments arising for impairment loss are as follows: Shareholders’ Family General Fund Takaful Takaful Group RM’000 RM’000 RM’000 Retained earnings/Accumulated surplus at 1 January 2011, as previously reported

225,166

3,560,306

147,709

Reversal of allowance for doubtful debts

(2,923)

(12,420)

(29,785)

Allowance for impairment loss on adoption of FRS 139

2,923

12,420

29,785

Retained earnings/Accumulated surplus at 1 January 2011, restated

225,166

3,560,306

147,709

Retained earnings/Accumulated surplus at 1 January 2011, as previously reported

228,768

3,322,350

178,744

Reversal of allowance for doubtful debts

(2,644)

(10,962)

(26,113)

Allowance for impairment loss on adoption of FRS 139

2,644

10,962

26,113

Retained earnings/Accumulated surplus at 1 January 2011, restated

228,768

3,322,350

178,744

Company



45. Changes in accounting policies (continued) 45.3 FRS 101, Presentation of Financial Statements (revised) The adoption of FRS 101 (revised) effective for the financial year ended 31 December 2011 resulted in the following: (i) income statements for the year ended 31 December 2010 have been re-presented as statements of comprehensive income. All non-owner changes in equity that were presented in the statement of changes in equity are now included in the statement of comprehensive income as other comprehensive income. Consequently, components of comprehensive income are not presented in the statement of changes in equity; and (ii) a statement of financial position at the beginning of the earliest comparative period, i.e. 1 July 2009 have been included following the change in the comparative figures for 31 December 2010 to conform with current year’s presentation. 45.4 FRS 117, Leases The Group has adopted the amendment to FRS 117. The Group has reassessed and determined that all leasehold land of the Group are in substance finance leases and has reclassified the leasehold land to property, plant and equipment. The change in accounting policy has been made retrospectively in accordance with the transitional provisions of the amendment and is disclosed in Note 3 to the financial statements. The reclassification does not affect the basic and diluted earnings per ordinary share for the current and prior periods. 45.5 FRS 4, Insurance Contracts Under FRS 4, the Group and the Company are required to identify takaful contracts and investment contracts. Takaful contracts are those contracts when the Group and the Company have accepted significant takaful risk (by pooling of risk in a Risk Fund) from another party (participants) and agreeing to compensate the participants if a specified uncertain event (the insured event) adversely affects the participants. Any takaful contracts which does not contain significant insurance risk will be treated as investment contracts. FRS 4 also requires the Group and the Company to perform Liability Adequacy Test (LAT) to ensure that the recognised Family and General takaful contract liabilities are adequate. LAT is performed at each reporting date, using current estimates of future cashflows under its takaful contracts. In addition, takaful contract liabilities are required to be presented at gross of retakaful assets. Certain comparative figures have been restated as a result of FRS 4 adoption and changes are as disclosed in Note 46.

239

240



46. Comparatives figures 31.12.2010 1.7.2009 As As previously As As previously restated stated restated stated Statements of financial position RM’000 RM’000 RM’000 RM’000 Shareholders’ Fund Group Property and equipment Prepaid lease payment

29,897 -

27,006 2,891

35,747 -

32,456 3,291

22,642 -

21,446 1,196

28,109 -

26,868 1,241

43,009 (52,904) (15,217) (156,275) - - (3,560,306)

- - - - (44,016) (173,730) (3,523,947)

10,986 (43,817) (29,152) (197,951) - - (3,089,892)

(48,130) (186,322) (3,115,374)

Company Property and equipment Prepaid lease payment Family Takaful Fund Group Retakaful assets Takaful contract liabilities Takaful payables Other payables Provision for outstanding claims Payables Participants’ fund



46. Comparatives figures (continued) 31.12.2010 1.7.2009 As As previously As As previously restated stated restated stated Statements of financial position RM’000 RM’000 RM’000 RM’000 Family Takaful Fund (continued) Company Retakaful assets Takaful contract liabilities Takaful payables Other payables Provision for outstanding claims Payables Participants’ fund

37,177 (44,471) (12,233) (144,220) - - (3,322,350)

- - - - (42,936) (156,453) (3,286,708)

6,615 (34,227) (21,591) (181,878) - - (2,921,741)

(40,680) (167,091) (2,945,051)

285,124 (775,598) (35,237) (85,308) - - (147,709)

- - - - (226,645) (101,471) (430,612)

231,619 (633,145) (40,971) (110,509) - - (87,601)

(171,405) (132,235) (336,967)

216,531 (659,478) (31,096) (62,524) - - (178,744)

- - - - (200,491) (93,620) (421,200)

180,568 (536,372) (34,236) (90,695) - - (115,857)

(145,204) (124,931) (326,457)

General Takaful Fund Group Retakaful assets Takaful contract liabilities Takaful payables Other payables Provision for outstanding claims Payables Participants’ fund Company Retakaful assets Takaful contract liabilities Takaful payables Other payables Provision for outstanding claims Payables Participants’ fund

241

242



46. Comparatives figures (continued) Group Company As As previously As As previously Statement of comprehensive income restated stated restated stated from 1 July 2009 to 31 December 2010 RM’000 RM’000 RM’000 RM’000 Shareholders’ Fund Realised gains and losses Fair value gains and losses Other operating income Commission expense Other operating expense

6,229 (668) 20,095 (59,097) (8,272)

- - 26,324 - (68,037)

6,179 (671) 9,493 (23,860) (5,232)

15,672 (29,763)

857,487 (30,100) (4,199) - 62,937 32,846 48,576

839,909 (30,824) - (4,199) - - 144,359

699,073 (6,150) (4,199) - 53,662 18,604 40,519

679,831 (6,150) (4,199) 112,785

551,118 (145,896) 31,776 (45,948) - 13,892 280 15,050

606,354 (167,424) - - (14,173) - - 29,222

456,162 (121,899) 31,776 (42,680) - 13,892 280 16,139

499,491 (133,372) (10,904) 30,311

Family Takaful Fund Gross contributions Contributions ceded to retakaful Administration fee Net administration fee Realised gains and losses Fair value gains and losses Other operating income General Takaful Fund Gross contributions Contributions ceded to retakaful Administration income Administration fee Net administration fee Realised gains and losses Fair value gains and losses Other operating income



47. Supplementary financial information on the breakdown of realised and unrealised profits The breakdown of the retained profits of the Group and of the Company as at 31 December, into realised and unrealised profits, pursuant to Paragraphs 2.06 and 2.23 of the Bursa Malaysia Main Market Listing Requirements, are as follows: Group Company 31.12.2011 31.12.2010 31.12.2011 31.12.2010 RM’000 RM’000 RM’000 RM’000 Total retained profits of the Company and its subsidiaries: - Realised - Unrealised

257,535 (677)

205,370 (2,164)

297,769 (15,202)

240,945 (12,177)

256,858

203,206

282,567

228,768

Total share of retained profits of associates: - Realised - Unrealised

- -

- -

- -

-

Add: Consolidation adjustments

256,858 27,183

203,206 21,960

282,567 -

228,768 -

Total retained profits

284,041

225,166

282,567

228,768

The determination of realised and unrealised profits is based on the Guidance of Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants on 20 December 2010.

243

244


Maklumat Hartanah

Particulars of Properties

Usia Bangunan/ Age of Building (tahun/ years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2011 (RM)

Tarikh Penilaian Semula/ Date of Revaluation

28

3,485/ 14,434

1,340,000

31.12.2011

Pajakan bandar 999 20 tahun berakhir pada 31.12.2895 999 years town lease expiring on 31.12.2895

4,025/ 6,037

2,700,000

31.12.2011

25

3,095/ 6,935

800,000

31.12.2011

Satu unit Rumah kedai/ Pajakan 99 tahun berakhir pada Pejabat 3 tingkat 30.03.2081 One unit of 3 storey Shophouse/Office 99 years lease expiring on 30.03.2081

16

1,539/ 4,255

480,000

31.12.2011

No. 84 Batu 3 1/4 Jalan Gombak 53000 Kuala Lumpur

Satu unit Rumah kedai/ Pegangan Bebas Freehold Pejabat 5 tingkat One unit of 5 storey Shophouse/Office

25

1,883/ 8,700

1,300,000

31.12.2011

6

Lot 6966, Blok 59 Muara Tuang Jalan Datok Mohd Musa 94300 Kota Samarahan Sarawak

Satu unit Rumah kedai/ Pejabat 3 tingkat One unit of 3 storey Shophouse/Office

Pajakan 60 tahun berakhir pada 31.12.2053 60 years lease expiring on 31.12.2053

16

1,312/ 3,750

620,000

31.12.2011

7

Lot 54 & 55 Bandar Wilayah Jasa Jalan Bunga Raya 91100 Lahad Datu Sabah

Dua unit Rumah kedai/ Pejabat 3 tingkat Two units of 3 storey Shophouse/Office

Pajakan bandar 99 tahun berakhir pada 31.12.2090 99 years town lease expiring on 31.12.2090

16

2,400/ 7,200

1,520,000

31.12.2011

No

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

1

Lot 557 & 559 Plaza Melaka Jalan Hang Tuah 75300 Melaka

Dua unit Rumah kedai/ Pegangan Bebas Pejabat 4 1/2 tingkat Freehold Two units of 4 1/2 storey Shophouse/ Office

2

No. 325A & 325B Blok 41, Kompleks Perniagaan Fajar 91000 Tawau Sabah

Tiga unit Kompleks Perniagaan/ Pejabat 4 tingkat Three units of 4 storey Commercial Complex/ Office

3

No. 64 & 65 Kompleks Jitra Jalan Sungai Korok 06000 Jitra Kedah Darul Aman

Dua unit Rumah kedai/ Pegangan Bebas Freehold Pejabat 2 tingkat Two units of 2 storey Shophouse/Office

4

No. 23 Medan Istana 3 Bandar Ipoh Raya 30450 Ipoh Perak Darul Ridzuan

5


Maklumat Hartanah






Satu unit Rumah kedai/ Pegangan Bebas Pejabat 3 tingkat Freehold One unit of 3 storey Shophouse/Office

17

3,200/ 9,600

4,500,000

31.12.2011

No. 15 & 17 Jalan Kelibang Langkawi Mall 07000 Kuah Langkawi Kedah Darul Aman

Dua unit Rumah kedai/ Pegangan Bebas Pejabat 2 tingkat Freehold Two units of 2 storey Shophouse/Office

18

1,440/ 7,720

550,000

31.12.2011

10

No. 26 & 28 Jalan Perda Barat Bukit Mertajam Seberang Prai 14000 Penang

Dua unit Rumah kedai/ Pegangan bebas Freehold Pejabat 3 tingkat Two units of 3 storey Shophouse/Office

13

3,293/ 8,840

1,230,000

31.12.2011

11

No. 433, 434 & 435 Jalan Kulas 93400 Kuching Sarawak

Tiga unit Rumah kedai/ Pegangan Bebas Freehold Pejabat 4 tingkat Three units of 4 storey Shophouse/Office

16

4,817/ 18,892

4,046,107

31.12.2011

12

No. 312 Jalan Bandar 13 Taman Melawati 53100 Kuala Lumpur

Satu unit Rumah kedai/ Pegangan Bebas Freehold Pejabat 4 tingkat One unit of 4 storey Shophouse/Office

17

1,920/ 7,070

1,500,000

31.12.2011

13

No. 20, Fasa 1A Jalan Haji Manan 86000 Kluang Johor Darul Ta’zim

Satu unit Rumah kedai/ Pajakan 99 tahun 15 99 years lease Pejabat 4 tingkat One unit of 4 storey Shophouse/Office

2,658/ 9,930

1,650,000

31.12.2011

14

Lot 13 & 14 Lazenda Commercial Centre Jalan Okk Abdullah 87007 Wilayah Persekutuan Labuan

Dua unit bangunan Pejabat 3 tingkat Two units of 3 storey Office building

2,504/ 7,200

1,900,000

31.12.2011

No

Lokasi/ Location


8

No. 24 Jalan USJ 10/1B 47620 UEP Subang Jaya Selangor Darul Ehsan

9

Hakmilik/ Tenure

Pajakan 999 tahun 17 berakhir pada 30.06.2902 999 years lease expiring on 30.06.2902

245

246


Maklumat Hartanah


No

Lokasi/ Location


Hakmilik/ Tenure





15

Lot 6967, Blok 59 Muara Tuang Jalan Datok Mohd Musa 94300 Kota Samarahan Sarawak



16

1,312/ 3,750

620,000

31.12.2011

16

Lot 28, 30 & 32 Jalan 2/3A, Pasar Borong 68100 Selayang Selangor Darul Ehsan

Tiga unit Rumah kedai/ Pejabat 4 tingkat Three units of 4 storey Shophouse/Office


24

4,447/ 16,800

2,700,000

31.12.2011

17

Lot 12680 Level 1 & Mezzanine Jalan Bukit Timbalan 80000 Johor Bharu Johor Darul Ta’zim

Dua tingkat bangunan Pejabat 13 tingkat Two floors of 13 storey Office building


13

8,354*

2,390,000

31.12.2011

18

Lot 12680 Level 3 Jalan Bukit Timbalan 80000 Johor Bharu Johor Darul Ta’zim

Satu tingkat bangunan Pejabat 13 tingkat One floor of 13 storey Office building


13

6,594*

1,450,000

31.12.2011

19

Lot 14(S1) & 15(S1) Indah Point, Section 12 Pulau Indah Industrial Park 42000 Klang West Port Selangor Darul Ehsan

Dua unit Rumah kedai/ Pejabat 4 tingkat (kosong) Two units of 4 storey Shophouse/Office (vacant)


12

3,300/ 10,560

660,000

31.12.2011

20

No. 1 & 2 Jalan Kelicap Taman Pekan Baru 34200 Parit Buntar Perak Darul Ridzuan



24

3,956/ 7,044

730,000

31.12.2011


Maklumat Hartanah






Dua unit Rumah kedai/ Pegangan Bebas Pejabat 4 tingkat Freehold Two units of 4 Storey Shophouse/Office

22

3,220/ 12,092

1,420,000

31.12.2011

No. 180 & 181 Jalan Tuan Hitam 22000 Jerteh Terengganu Darul Iman

Dua unit Rumah kedai/ Pegangan Bebas Freehold Pejabat 4 tingkat Two units of 4 storey Shophouse/Office

21

3,200/ 12,250

1,560,000

31.12.2011

23

Lot 82, 84 & 86 Jalan Rugbi 13/30 Seksyen 13 40100 Shah Alam Selangor Darul Ehsan

Tiga unit Rumah kedai/ Pejabat 2 tingkat Three units of 2 storey Shophouse/Office

12

6,339/ 11,309

2,520,000

31.12.2011

24

No. 229 Jalan Shahab 2 Shahab Perdana Jalan Sultanah Sambungan 05350 Alor Star Kedah Darul Aman

Satu unit Rumah kedai/ Pegangan Bebas Pejabat 2 1/2 tingkat Freehold One unit of 2 1/2 storey Shophouse/Office

15

1,400/ 3,570

480,000

31.12.2011

25

Lot No. 3803 Jalan Dato’ Ulu Muar 72000 Kuala Pilah Negeri Sembilan Darul Khusus



12

2,001/ 3,120

450,000

31.12.2011

26

No. 45 Jalan Teluk Sisek 25000 Kuantan Pahang Darul Makmur



11

3,200/ 8,019

2,100,000

31.12.2011

No

Lokasi/ Location


21

No. 46 & 47 Darul Takaful Jalan Rahmat 83000 Batu Pahat Johor Darul Ta’zim

22

Hakmilik/ Tenure


247

248


Maklumat Hartanah


No

Lokasi/ Location


Hakmilik/ Tenure





27

No. 27, 29 & 31 Pusat Komersil Temerloh 28000 Temerloh Pahang Darul Makmur

Tiga unit Rumah kedai/ Pejabat 2 1/2 tingkat Three units of 2 1/2 storey Shophouse/Office


11

4,195/ 15,050

1,800,000

31.12.2011

28

No. 2 & 4 Jalan 6C/7 43650 Bandar Baru Bangi Selangor Darul Ehsan

Dua unit Rumah kedai/ Pajakan 99 tahun berakhir pada Pejabat 2 tingkat 08.07.2086 Two units of 2 storey Shophouse/Office 99 years lease expiring on 08.07.2086

24

6,383/ 8,032

1,540,000

31.12.2011

29

Lot 14 Seremban City Centre Jalan Tuanku Munawir 70000 Seremban Negeri Sembilan Darul Khusus



15

1,500/ 14,589

3,375,000

31.12.2011

30

No. 29, Jalan Delima Pusat Perdagangan Pontian 82000 Pontian Johor Darul Ta’zim



10

3,899/ 10,248

1,400,000

31.12.2011

31

Lot 11 & 12 Kompleks Seri Temin Jalan Ibrahim 08000 Sungai Petani Kedah Darul Aman



26

2,800/ 11,020

1,328,000

31.12.2011

32

Lot 1129 & 1130 Bangunan Darul Takaful Jalan Sultan Ismail 20100 Kuala Terengganu Terengganu Darul Iman

Satu unit bangunan Pejabat 12 tingkat One unit of 12 storey Office building

Pajakan kecil 35 tahun berakhir pada 27.02.2037 35 years sub lease expiring on 27.02.2037

9

3,600/ 23,637

6,700,000

31.12.2011


Maklumat Hartanah


No

Lokasi/ Location


Hakmilik/ Tenure





33

No. 616 & 617 Jalan Besar 73000 Tampin Negeri Sembilan Darul Khusus


Pajakan 99 tahun berakhir pada 05.10.2088 99 year lease expiring on 05.10.2088

19

4,498/ 8,685

950,000

31.12.2011

34

No. 6, Jalan 6C/7 43650 Bandar Baru Bangi Selangor Darul Ehsan


Pajakan 99 tahun berakhir pada 08.07.2086 99 year lease expiring on 08.07.2086

24

1,905/ 3,508

660,000

31.12.2011

35

Suite 3B/G Blok 3B, Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur

Satu tingkat bangunan Pegangan bebas Freehold Pejabat 22 tingkat One floor of 22 storey Office building

10

6,409*

7,600,000

31.12.2011

36

No. 26 & 27 Jalan Tanjung Pasar Baru 18500 Machang Kelantan Darul Naim



30

1,600/ 4,000

620,000

31.12.2011

37

No. 330 & 331 Jalan Sultan Yahya Petra 15720 Kota Bharu Kelantan Darul Naim

Dua unit bangunan Pejabat 4 1/2 tingkat Two units of 4 1/2 storey Office building


29

3,200/ 15,200

1,870,000

31.12.2011

38

Dataran Kewangan Darul Takaful Jalan Sultan Sulaiman 50000 Kuala Lumpur

Pegangan Bebas Dua unit bangunan Freehold Pejabat Blok Utama - 26 tingkat Blok Annex - 29 tingkat Two units of Office building Main Block - 26 storey Annexe Block - 29 storey

Blok Utama/ 90,427/ Main Block 393,508 - 38 Blok Annex/ Annexe Block - 31

165,000,000 31.12.2011

249

250


Maklumat Hartanah


No

Lokasi/ Location


Hakmilik/ Tenure





39

No. 2408 Taman Samudera 32040 Sri Manjung Perak Darul Ridzuan



15

2,800/ 5,300

820,000

31.12.2011

40

No. 76A & 76 Pusat Perniagaan Jalan Tupai 34000 Taiping Perak Darul Ridzuan


Pegangan Bebas Freehold

8

3,134/ 18,304

1,530,000

31.12.2011

41

No. 10 & 11 Jalan Sultan Yahya Petra 15200 Kota Bharu Kelantan Darul Naim



9

3,852/ 9,120

1,980,000

31.12.2011

42

No. 4197 Jalan Teluk Wanjah 05200 Alor Star Kedah Darul Aman



9

8,716/ 18,440

3,240,000

31.12.2011

43

No. 10 & 8 Jalan Padi Emas 5/2 Bandar Baru UDA 81200 Johor Bharu Johor Darul Ta’zim



6

3,080/ 8,024

1,420,000

31.12.2011

44

No. 4 Kompleks Seri Temin Jalan Ibrahim 08000 Sungai Petani Kedah Darul Aman



26

1,400/ 5,510

660,000

31.12.2011


Maklumat Hartanah


No

Lokasi/ Location


Hakmilik/ Tenure





45

No. 16, Jalan Cenderawasih Jalan Kilang Lama 09000 Kulim Kedah Darul Aman



12

1,600/ 4,172

420,000

31.12.2011

46

Lot 1340, Miri Waterfront Commercial Centre 98000 Miri Sarawak


Pajakan 60 tahun berakhir 30.09.2052 60 years expiring on 30.09.2052

7

1,400/ 5,500

1,200,000

31.12.2011

47

No. 6, Jalan Padi Emas 5/2, Bandar Baru UDA 81200 Johor Bharu Johor Darul Ta’zim



6

1,540/ 4,012

710,000

31.12.2011

48

No. 148, Kompleks Munshi Abdullah 75200 Melaka

Satu unit bangunan Pejabat 4 ½ tingkat One unit of 4 ½ storey Office building


18

1,470/ 6,117

720,000

31.12.2011

49

No. 16474 & 16475 Pusat Perniagaan Inderapura Jalan Tras Raub Pahang Darul Makmur



12

3,218/ 9,280

1,360,000

31.12.2011

Jumlah/Total * Kawasan Bina/Build-up Area

248,119,107

251

252


Statistik Pegangan Saham

Shareholdings Statistics

Modal Saham / Share Capital Modal Dibenarkan : 500,000,000 saham biasa bernilai RM1.00 sesaham Authorised capital 500,000,000 ordinary shares of RM1.00 each Modal yang diterbitkan dan dibayar sepenuhnya pada 2 Mac 2012 : 162,817,000 saham biasa bernilai RM1.00 sesaham Issued and fully paid-up capital as at 2 March 2012 162,817,000 ordinary shares of RM1.00 each Jumlah pemegang saham pada 2 Mac 2012 No. of shareholders as at 2 March 2012

: 2,084

Kelas saham : Saham biasa bernilai RM1.00 sesaham Class of shares Ordinary shares of RM1.00 each Hak mengundi : 1 undi bagi setiap saham biasa Voting right 1 vote per ordinary share

Pemegang-Pemegang Saham Utama (5% Dan Lebih) Pada 2 mac 2012 Substantial Shareholders’ Shareholdings (5% And Above) as at 2 march 2012 Nama Pemegang Saham Jumlah Saham Peratus (%) Name of Shareholders Number of Shares Percentage (%) BIMB Holdings Berhad Citigroup Nominees (Tempatan) Sdn Bhd (Employees Provident Fund Board)

106,183,675 8,249,220

65.22 5.07

Jumlah/Total

114,432,895

70.29

Pegangan Saham Para Pengarah Pada 2 Mac 2012 Directors’ Shareholdings as at 2 March 2012 Nama Pengarah Jumlah Saham Peratus (%) Name of Directors Number of Shares Percentage (%) Y. Bhg. Dato’ Paduka Ismee Ismail

-

-

Y. Bhg. Dato’ Mohamed Hassan Md. Kamil

-

-

Puan Rozaida Omar

-

-

Encik Mahadzir Azizan

-

-

Y. Bhg. Dato’ Sulaiman Mohd Yusof

-

-


-

-


-

-




Analisa Pegangan Saham Mengikut Saiz Pada 2 Mac 2012 Analysis By Size Of Shareholdings as at 2 March 2012 Saiz Pegangan Saham Bilangan Peratus (%) Jumlah Size of Shareholdings Pemegang Saham Percentage (%) Pegangan Saham Number of Number of Shareholders Shareholdings

Peratus (%) Percentage (%)

Kurang dari 100 Less than 100

235

11.28

3,620

0.00

100 - 1,000

410

19.67

250,113

0.15

1,174

56.33

3,981,822

2.45

10,001 - 100,000

213

10.22

7,012,500

4.31

100,001 sehingga kurang daripada 5% saham diterbitkan 100,001 to less than 5% of issued shares

50

2.40

37,136,050

22.81

5% dan lebih saham diterbitkan 5% and above of issued shares

2

0.10

114,432,895

70.28

2,084

100.00

162,817,000

100.00

1,001 - 10,000

Jumlah/Total

Tiga Puluh (30) Pemegang Saham Terbesar Pada 2 Mac 2012 Thirty (30) Largest Shareholders as at 2 March 2012 Nama Pemegang Saham Jumlah Saham Peratus (%) Name of Shareholders Number of Shares Percentage (%) BIMB Holdings Berhad

106,183,675

65.22

Citigroup Nominees (Tempatan) Sdn Bhd (Employees Provident Fund Board)

8,249,220

5.07

Bimsec Nominees (Asing) Sdn Bhd (Islamic Development Bank)

7,000,000

4.30

Affin Nominees (Tempatan) Sdn Bhd (Affin Fund Management Sdn Bhd for Majlis Ugama Islam Dan Adat Resam Melayu Pahang)

4,602,000

2.83

RHB Nominees (Asing) Sdn Bhd (RUSD Investment Bank Inc.)

3,796,500

2.33

253

254




Tiga Puluh (30) Pemegang Saham Terbesar Pada 2 Mac 2012 (sambungan) Thirty (30) Largest Shareholders as at 2 March 2012 (continued) Nama Pemegang Saham Jumlah Saham Peratus (%) Name of Shareholders Number of Shares Percentage (%) AmanahRaya Trustees Berhad (Public Islamic Select Treasures Fund)

3,003,700

1.84

Lembaga Kemajuan Tanah Persekutuan (FELDA)

2,961,400

1.82

Majlis Agama Islam Negeri Sembilan

2,070,900

1.27

Kenanga Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Majlis Agama Islam Dan Adat Melayu Terengganu (STC))

1,554,600

0.95

Saleem Abdullatif Mustafa

1,154,000

0.71

Majlis Agama Islam Melaka

998,250

0.61

T.O. Lim Holdings Sdn Bhd

600,000

0.37

Alliancegroup Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Shanmugam A/L Thoppalan [8069535])

531,900

0.33

Universiti Sains Malaysia

500,000

0.31

Public Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Lee Kin Kheong [E-IMO])

497,900

0.31

Meng Hin Holdings Sdn Bhd

489,300

0.30

Public Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Lee Chow Yong [E-SLY/WMU])

437,400

0.27

Amin Baitulmal Johor

400,000

0.25

Majlis Agama Islam Dan Adat Melayu Perak Darul Ridzuan

400,000

0.25

HLB Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Vanitha A/P Kaneson)

370,000

0.23

Miss Wipaporn Limprana

350,000

0.21

PKNS Infra Berhad

320,000

0.20




Tiga Puluh (30) Pemegang Saham Terbesar Pada 2 Mac 2012 (sambungan) Thirty (30) Largest Shareholders as at 2 March 2012 (continued) Nama Pemegang Saham Jumlah Saham Peratus (%) Name of Shareholders Number of Shares Percentage (%) Kenanga Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Chin Kiam Hsung)

304,100

0.19

Lim Khuan Eng

294,000

0.18

AmanahRaya Trustees Berhad (Public Islamic Treasures Growth Fund)

291,500

0.18

TA Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Phua Lee Ping)

282,000

0.17

Philip A/L K.O Kunjappy

277,000

0.17

Tan Yong Kiang

255,000

0.16

Cheng Hon Sang

220,000

0.14

Ho Ah Chai

209,500

0.13

148,603,845

91.27

Jumlah/Total

255

256


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IBU PEJABAT/HEAD OFFICE SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K)

26th Floor, Annexe Block Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur P.O. Box 11483 50746 Kuala Lumpur Tel : +603-2268 1984 Fax : +603-2274 0237 Toll Free : 1-300-8-825 2385 Web : www.takaful-malaysia.com.my

TAKAFUL myCARE CENTRES* DATARAN KEWANGAN DARUL TAKAFUL Tingkat Bawah, Blok Utama Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur SHAH ALAM No. 82, 84, 86 Tingkat Bawah, Darul Takaful Jalan Rugbi 13/30, Seksyen 13 40100 Shah Alam Selangor Darul Ehsan PETALING JAYA No. 10-2 & 12-2, Tingkat 1 Jalan 14/22, The Right Angle 46100 Petaling Jaya Selangor Darul Ehsan BANDAR PERDA No. 28, Jalan Perda Barat 1 Bandar Baru Perda 14000 Bukit Mertajam Pulau Pinang GELUGOR No. 2480, Tingkat Bawah Jalan Sultan Azlan Shah 11700 Gelugor Pulau Pinang ALOR SETAR No. 229, Darul Takaful Jalan Shahab 2, Shahab Perdana Jalan Sultanah Sambungan 05150 Alor Setar Kedah Darul Aman IPOH No. 23A, Medan Istana 3 Bandar Ipoh Raya 30000 Ipoh Perak Darul Ridzuan


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KUALA TERENGGANU Tingkat 2, Darul Takaful Jalan Sultan Ismail 20100 Kuala Terengganu Terengganu Darul Iman KOTA BHARU Lot 331 & 332 Tingkat Bawah, Darul Takaful Jalan Sultan Yahya Petra, Wakaf Siku 15200 Kota Bharu Kelantan Darul Naim KUANTAN No. 45, Tingkat Bawah, Darul Takaful Jalan Teluk Sisek 25000 Kuantan Pahang Darul Makmur SEREMBAN Darul Takaful, Suite 14 – 2 Seremban City Centre Jalan Pasar 70000 Seremban Negeri Sembilan Darul Khusus KOTA KINABALU Lot A 202 & 203, Tingkat 2, Blok A Wisma MUIS, Jalan Tengku Abdul Rahman 88850 Kota Kinabalu Sabah KUCHING No. 435, Tingkat 1, Darul Takaful Bangunan Tuanku Haji Mohammad Al-Idrus Jalan Kulas, 93400 Kuching Sarawak JOHOR BAHRU Tingkat Bawah, No. 5, Jalan Setia Tropika 1/30 Taman Setia Tropika 81200 Johor Bahru Johor Darul Takzim

TAKAFUL RETAIL CENTRES* KL SENTRAL Lot CS/3B/G, Tingkat Bawah Plaza Sentral, Jalan Stesen Sentral 5 50470 Kuala Lumpur IFiC JOHOR BAHRU Ground Floor, Menara TH Johor Bahru PTB 20485, Jalan Ayer Molek 80000 Johor Bahru Johor Darul Takzim

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257

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TABUNG HAJI CAWANGAN KOTA TINGGI Bangunan Tabung Haji No. 24, Jalan Niaga 1 81900 Kota Tinggi Johor Darul Takzim Tel : 07-883 2880 : 012 774 7553 Fax : 07-882 2790 TABUNG HAJI CAWANGAN TANAH MERAH Tingkat 1, Bangunan TH Lot 211, Jalan Hospital 17500 Tanah Merah Kelantan Darul Naim Tel : 09-955 7411 Fax : 09-955 7413 TABUNG HAJI CAWANGAN KUALA PILAH Bangunan Tabung Haji Lot No 234 Jalan Dato’ Undang Johol 72000 Kuala Pilah Negeri Sembilan Darul Khusus Tel : 06-481 0971 Fax : 06-481 0972

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MELAKA MASJID TANAH SU 953, Tingkat Bawah Jalan Bandar Baru 6 Taman Bandar Baru, Masjid Tanah 78300 Masjid Tanah Melaka Tel : 06-384 7233 Fax : 06-384 8533 Kompleks Munsyi Abdullah 148, Kompleks Munsyi Abdullah Jalan Munsyi Abdullah 75100 Melaka Tel : 06-288 3054 Fax : 06-288 1341 PAHANG DARUL MAKMUR TEMERLOH No. 27, Jalan Dato’ Bahaman 3 Darul Takaful, Pusat Dagangan Temerloh 28000 Temerloh Pahang Darul Makmur Tel : 09-296 5560 : 09-296 2595 Fax : 09-296 5417 PERAK DARUL RIDZUAN BANDAR BARU SRI MANJUNG No. 2406, Taman Samudera 32040 Sri Manjung Perak Darul Ridzuan Tel : 05-688 1186 : 05-688 6211 Fax : 05-688 7211 TAIPING No. 76, Tingkat 1 & 2 Darul Takaful, Pusat Perniagaan Taiping Jalan Tupai 34000 Taiping Perak Darul Ridzuan Tel : 05-807 9876 : 05-807 6588 : 05-804 1782 Fax : 05-808 7588

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259

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SUBSIDIARY COMPANIES ASEAN RETAKAFUL INTERNATIONAL (L) LTD. (LL01129) Level 14, Blok 4 Financial Park Complex Jalan Merdeka 87000 Wilayah Persekutuan Labuan Tel : 087-451 301 : 087-451 302 : 087-451 303 Fax : 087-451 300 PT SYARIKAT TAKAFUL INDONESIA Graha A, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta 12790 Indonesia Tel : 6221-799 1234 : 6221-799 2345 Fax : 6221-790 1435 PT ASURANSI TAKAFUL KELUARGA Graha B, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta 12790 Indonesia Tel : 6221-799 1234 : 6221-799 2345 Fax : 6221-790 1435 PT ASURANSI TAKAFUL UMUM Graha A, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta 12790 Indonesia Tel : 6221-799 1234 : 6221-799 2345 Fax : 6221-790 1944

Borang Proksi/Proxy Form

Saya / Kami / I / We .................................................................................................................................................................................................................................................. sebagai Ahli / Ahli - Ahli Syarikat yang dinyatakan di atas dengan ini melantik being a Member / Members of the abovenamed Company, hereby appoint ………………………………………..……………………………………………………………….…………...................................................................…..............……................ dari / of …..................…..........…………………………….………………………………………………………..………………………………...................................................... atau / Pengerusi Mesyuarat jika beliau tidak dapat hadir / or the Chairman of the Meeting failing him .……………….........................……...................……………… dari / of …..................…..........…………………………….………………………………………………………..………………………………...................................................... sebagai proksi saya / kami untuk mengundi bagi pihak saya / kami di MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD yang KEDUA PULUH TUJUH yang akan diadakan pada hari Khamis, 3 Mei 2012 pada jam 10:00 pagi dan pada sebarang penangguhannya. as my / our proxy to vote for me / us on my / our behalf at the TWENTY SEVENTH ANNUAL GENERAL MEETING OF SYARIKAT TAKAFUL MALAYSIA BERHAD, to be held on Thursday, 3 May 2012 at 10:00 a.m and any adjournment thereof. Sila tandakan “X” di dalam ruang yang disediakan di bawah bagaimana anda ingin mengundi untuk resolusi-resolusi berikut. Sekiranya tiada arahan-arahan tertentu, proksi anda akan mengundi atau tidak mengundi sepertimana yang dia anggap patut. Jika anda melantik dua proksi, sila nyatakan bahagian pegangan untuk diwakilkan kepada setiap proksi. Please indicate an “X” in the space provided below, how you wish your vote to be cast in respect of the following resolutions. In the absence of specific directions, your proxy may vote or abstain at his/her discretion. If you appoint two proxies, please specify the proportions of holdings to be represented by each proxy. Wakil saya / kami akan mengundi seperti berikut / My / Our proxy is to vote as indicated hereunder: NO. RESOLUSI / RESOLUTION MENYOKONG/ MENENTANG/ FOR AGAINST 1 Untuk menerima Penyata-Penyata Kewangan yang telah diaudit bagi tahun kewangan berakhir 31 Disember 2011, beserta laporan Pengarah dan Juruaudit berkaitan dengannya. To receive the Audited Financial Statements for the financial year ended 31 December 2011, together with the reports of the Directors and Auditors thereon. 2 Untuk meluluskan dividen akhir sebanyak 10% tier tunggal bagi tahun kewangan berakhir 31 Disember 2011. To approve a final dividend of 10% single tier in respect of the financial year ended 31 December 2011. Untuk melantik semula Pengarah-pengarah berikut yang bersara menurut Artikel 62 Tataurusan Pertubuhan Syarikat: To re-elect the following Directors, each of whom retires pursuant to Article 62 of the Company’s Articles of Association: 3 Puan Rozaida Omar 4

Y. Bhg. Dato’ Paduka Ismee Ismail

5 Untuk meluluskan bayaran yuran Pengarah-pengarah sebanyak RM579,000 bagi tahun kewangan berakhir 31 Disember 2011. (RM721,000 bagi tempoh kewangan lapan belas (18) bulan berakhir 31 Disember 2010) To approve the payment of the Directors’ fees of RM579,000 for the financial year ended 31 December 2011. (RM721,000 for eighteen (18) months financial period ended 31 December 2010) 6 Untuk meluluskan bayaran yuran Ahli-Ahli Badan Penasihat Syariah sebanyak RM167,000 bagi tahun kewangan berakhir 31 Disember 2011. (RM153,000 bagi tempoh kewangan lapan belas (18) bulan berakhir 31 Disember 2010) To approve the payment of Shariah Advisory Body Members’ fees of RM167,000 for the financial year ended 31 December 2011. (RM153,000 for eighteen (18) months financial period ended 31 December 2010) 7 Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-Pengarah untuk menetapkan bayaran Juruaudit. To re-appoint Messrs KPMG Desa Megat & Co. as the Auditors of the Company and to authorise the Directors to fix their remuneration. 8

Cadangan Mandat Pemegang-Pemegang Saham bagi Urusniaga-Urusniaga yang Berulang dengan Pihak Berkaitan. Proposed Shareholders’ Mandate for Recurrent Related Party Transactions.

9

Cadangan Pindaan kepada Tataurusan Pertubuhan Syarikat. Proposed Amendments to the Company’s Articles of Association.

JUMLAH SAHAM NO. OF SHARES Pada / Dated this …..… haribulan / day of …... 2012 Tandatangan/ Cop Mohor Pemegang Saham Signature/ Common Seal of Shareholders

Nota-Nota: (i) Seorang ahli Syarikat yang berhak hadir dan mengundi dalam mesyuarat, berhak melantik seorang atau beberapa orang proksi untuk hadir dan mengundi bagi pihaknya dan haruslah menyatakan bahagian pegangan sahamnya yang diwakili oleh setiap proksi dan seorang proksi tidak semestinya ahli Syarikat. (ii) Suratcara pelantikan proksi mestilah dibuat secara bertulis dan ditandatangani oleh pihak yang melantik atau wakilnya yang diberi kuasa secara bertulis atau jika pihak yang melantik itu sebuah perbadanan, ianya hendaklah dibuat sama ada di bawah meteri atau ditandatangani oleh pegawai atau wakil yang diberi kuasa. (iii) Semua borang proksi hendaklah dihantar kepada Pejabat Berdaftar Syarikat, di Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No.4 Jalan Sultan Sulaiman, 50000 Kuala Lumpur tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya. (iv) Kecuali arahan mengundi dinyatakan dalam ruang yang disediakan di atas, seorang proksi boleh mengundi sebagaimana yang ia fikirkan sesuai. Notes: (i) A member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend and vote instead of him and shall specify the proportions of his holdings to be represented by each proxy and a proxy need not be a member of the Company. (ii) The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a corporation, either under seal or under the hand of an officer or attorney duly authorised. (iii) All proxy forms should be deposited at the Registered Office of the Company at Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur not less than forty-eight (48) hours before the time for holding the meeting or any adjournment thereof. (iv) Unless voting instructions are indicated in the spaces provided above, the proxy may vote as he/she thinks.

Setiausaha Syarikat / The Company Secretary SYARIKAT TAKAFUL MALAYSIA BERHAD Tingkat 26, Blok Annex Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur

SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K) Tingkat 26, Blok Annex Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur

' : 1300-8-TAKAFUL (8252385)

6 : 603-2274 0237

* : [email protected]