TSB Commercial Centre Tropicana City Tropicana Mall Tropicana Grande Green Haven The Tropics Casa Indah 2 Villa Green Casa Suites asa Tropicana Inda

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1 (47908-K) TSB Commercial Centre Tropicana City Tropicana Mall Tropicana Grande The Tropics Casa Indah 2 Green Haven Villa Green Tropicana Avenue Casa Tropicana Merchant Square Casa Suites Casa Indah 1 Green Acres 2 Casa Damansara 1 Casa Damansara 2 Fortune Park Green Acres Damansara Intan Tropicana Golf & Country Resort Making our Mark Annual Report 2007 Damansara Indah Resort Homes

2 Contents 1 Five-Year Group Financial Summary 2 Corporate Information 3 Group Corporate Structure 4 Board of Directors 5 Profile of the Board of Directors 8 Chairman s Statement Penyata Pengerusi 17 Other Information 18 Statement on Corporate Governance 24 Statement on Internal Control 27 Report of Audit Committee 29 Statement on Corporate Social Responsibility 30 Analysis of Shareholdings 32 List of Properties 33 Financial Statements 98 Notice of Annual General Meeting 99 Statement Accompanying the Notice of Annual General Meeting Proxy Form At Dijaya, we are focused on making our mark as a trusted property developer with a passion for excellence. Having built a strong stable of quality brands, we will continue to extend our reach and explore new opportunities for sustainable growth. All with the aim of creating long-term value for our shareholders, customers and the community.

3 DIJAYA CORPORATION BERHAD (47908-K) 1 Five-Year Group Financial Summary Revenue (RM Million) Profit after tax and minority interests (RM Million) ,008.9 Total assets (RM Million) 1, , , '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 Earnings per share (sen) Shareholders equity (RM Million) Net asset per share (RM) '03 '04 '05 '06 '07 '03 '04 '05 '06 '07 '03 '04 '05 '06 ' Revenue () 270, , , , ,800 Profit after tax and minority interests () 48,589 40,512 29,193 41,546 17,255 Total assets () 1,008,112 1,004, ,853 1,000,588 1,008,903 Shareholders equity () 606, , , , ,365 Earnings per share (sen) (basic) Net asset per share (RM)

4 2 DIJAYA CORPORATION BERHAD (47908-K) Corporate Information BOARD OF DIRECTORS Y. Bhg. Tan Sri Dato Seri Mohd Sedek Bin Mohd Ali (Independent Non-Executive Chairman) Y. Bhg. Tan Sri Dato Tan Chee Sing (Group Chief Executive Officer) Tong Kien Onn (Managing Director) HEAD OFFICE Lot 301, 3rd Floor, Wisma Dijaya No. 1A, Jalan SS 20/1 Damansara Utama Petaling Jaya Selangor Darul Ehsan Malaysia Tel : Fax : SHARE REGISTRAR Symphony Share Registrars Sdn Bhd Level 26, Menara Multi Purpose Capital Square No. 8, Jalan Munshi Abdullah Kuala Lumpur Malaysia Tel : Fax : /31 Quek Cham Hong (Executive Director) Michael Lim Hee Kiang (Independent Non-Executive Director) Roslan Bin Hj Yahya (Independent Non-Executive Director) Dato Ahmad Hassan Bin Osman (Independent Non-Executive Director) REGISTERED OFFICE Lot 302, 3rd Floor, Wisma Dijaya No. 1A, Jalan SS 20/1 Damansara Utama Petaling Jaya Selangor Darul Ehsan Malaysia Tel : Fax : COMPANY SECRETARY Low Nyoke Fun (MAICSA No ) PRINCIPAL BANKERS Alliance Bank Malaysia Berhad AmBank (M) Berhad CIMB Bank Berhad The Bank of Nova Scotia Berhad Loh Chen Peng (Independent Non-Executive Director) Rohana Binti Tan Sri Mahmood (Independent Non-Executive Director) Datuk Seri Panglima Mohd Annuar Bin Zaini (Independent Non-Executive Director) AUDITORS Ernst & Young Chartered Accountants Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur Malaysia Tel : Fax : STOCK EXCHANGE LISTING Main Board Bursa Malaysia Securities Berhad ( Bursa Securities ) Stock Name : DIJACOR Stock Code : 5401 WEBSITE

5 DIJAYA CORPORATION BERHAD (47908-K) 3 Group Corporate Structure as at 3 June 2008 (Company No K) Tropicana Management Services Sdn Bhd 100% Real Property & Resort Development Tropicana Golf & Country Resort Berhad 100% Puncak Suria Sdn Bhd 100% Mawar Hebat Sdn Bhd 100% Nadi Jelita Sdn Bhd 100% Dijaya Land Sdn Bhd 100% Dicasa Management Services Sdn Bhd 100% Bakat Rampai Sdn Bhd 100% Dicorp Land Sdn Bhd 100% Irama Sejati Sdn Bhd 100% Damansara Impian Sdn Bhd 70% Arah Pelangi Sdn Bhd 100% Aspek Analisa Sdn Bhd 100% Dijaya (Mauritius) Limited 100% Dijaya - Malind JV (Mauritius) Limited 72% Dijaya - Malind Properties (India) Private Limited 74% Dijaya Management Services Sdn Bhd 100% Dijaya Property Sdn Bhd 100% Manufacturing Sumber Saujana Sdn Bhd 100% Sinbor Corporation Sdn Bhd 100% Tenaga Kimia Sdn Bhd 33% Accroway Sdn Bhd 100% Investment Terbit Berkat Sdn Bhd 100% Nagasari Cerdas Sdn Bhd 100% Desiran Realiti Sdn Bhd 100% * excluding dormant companies

6 4 DIJAYA CORPORATION BERHAD (47908-K) Board of Directors FIRST ROW, FROM LEFT: Y. Bhg. Tan Sri Dato Seri Mohd Sedek Bin Mohd Ali (Independent Non-Executive Chairman) Y. Bhg. Tan Sri Dato Tan Chee Sing (Group Chief Executive Officer) SECOND ROW, FROM LEFT: Tong Kien Onn (Managing Director) Quek Cham Hong (Executive Director) Michael Lim Hee Kiang (Independent Non-Executive Director) Roslan Bin Hj Yahya (Independent Non-Executive Director) THIRD ROW, FROM LEFT: Dato Ahmad Hassan Bin Osman (Independent Non-Executive Director) Loh Chen Peng (Independent Non-Executive Director) Rohana Binti Tan Sri Mahmood (Independent Non-Executive Director) Datuk Seri Panglima Mohd Annuar Bin Zaini (Independent Non-Executive Director)

7 DIJAYA CORPORATION BERHAD (47908-K) 5 Profile of the Board of Directors TAN SRI DATO SERI MOHD SEDEK BIN MOHD ALI (Independent Non-Executive Chairman) Tan Sri Dato Seri Mohd Sedek Bin Mohd Ali, a Malaysian aged 59, was appointed to the Board of Directors of Dijaya Corporation Berhad ( Dijaya ) as an Independent Non-Executive Director on 20 June 2005 and was appointed as Chairman of Dijaya on the same date. He graduated with a Bachelor of Arts in Economics from the University of Malaya in 1971 and later a Masters of Arts in Management from University of Leeds, United Kingdom. He joined the Royal Malaysia Police as an Assistant Superintendent in 1973 and had various postings. He was the Chief Police Officer of Kelantan and Perak. In 2002, with the rank of Commissioner of Police, he was made the Director of Internal Security and Public Order. He was the Operational Chairman for Security and Traffic during the 13th NAM (Non-Aligned Movement) Summit in Kuala Lumpur. He was the Deputy Inspector-General of Police from 2004 to 2005 before retiring in January He also sits as an Independent Non-Executive Chairman on the board of Poh Huat Resources Holdings Berhad. Tan Sri Dato Seri Mohd Sedek does not have any interest in the securities of the Company or its subsidiaries. He does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years, other than traffic offences. TAN SRI DATO TAN CHEE SING (Group Chief Executive Officer) Tan Sri Dato Tan Chee Sing, a Malaysian aged 53, was appointed to the Board on 5 July He is currently the Group Chief Executive Officer of Dijaya. He is a businessman and entrepreneur having a wide spectrum of businesses through his investments in public and private limited corporations. He is also the Executive Vice-Chairman of TT Resources Bhd, Chief Executive Officer of Tropicana Golf & Country Resort Berhad, the Deputy Chairman of Berjaya Corporation Berhad and Berjaya Land Berhad and a Director of Cosway Corporation Berhad, Berjaya Capital Berhad, Bukit Kiara Resort Berhad, KDE Recreation Berhad, Tioman Island Resort Berhad, Berjaya Golf Resort Berhad and MTD Capital Bhd. Tan Sri Dato Tan does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company except for certain recurrent related party transactions of revenue or trading nature which are necessary for the day-today operations of the Group. He has not been convicted for any offence within the past 10 years. TONG KIEN ONN (Managing Director) Mr. Tong Kien Onn, a Malaysian aged 49, was appointed to the Board on 18 January He was appointed as the Managing Director of Dijaya on 10 May He is also the Chairman of the Option Committee. He is an Accountant by profession and an Associate member of The Chartered Institute of Management Accountants, United Kingdom. He has more than 20 years of experience in the finance and accounting fields through his employments with a number of Malaysian companies including United Prime Corporation Berhad. He joined Dijaya in 1991 as Senior Finance Manager, responsible for the Dijaya Group s finance, accounting and treasury functions. He was promoted as General Manager of Finance and Administration in 2000 and was promoted as Senior General Manager of Finance Administration in the same year before appointed as an Executive Director in He is also a director of TT Resources Bhd. Mr. Tong Kien Onn does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years, other than traffic offences. QUEK CHAM HONG (Executive Director) Mr. Quek Cham Hong, a Malaysian aged 46, was appointed as an Executive Director of Dijaya on 27 February He is also a member of the Option Committee. He holds a Bachelor of Science Degree in Housing, Building & Planning (Honours) with major in Project Management & Building Economics from the University of Science Malaysia and had received the Institution of Engineers Malaysia (Northern Branch) Gold Medal Award for outstanding academic performance in the university. He is an Incorporated Member of the Chartered Institute of Building (UK).

8 6 DIJAYA CORPORATION BERHAD (47908-K) PROFILE OF THE BOARD OF DIRECTORS He has more than 20 years of experience in property development, property management and construction industry. Prior to joining Tropicana Golf & Country Resort Berhad ( Tropicana ), he had worked with a japanese construction company, Nakano (Malaysia) Sdn Bhd and local public-listed property development companies such as Promet Berhad and Uniphoenix Corporation Berhad. He joined Tropicana in 1993 as a Project Manager. During his 14½ years of service with the Dijaya Group, he had been promoted to Senior Project Manager in 1995, Assistant General Manager in 1999, General Manager in 2001 and Senior General Manager in Currently, he is also the Executive Director of Damansara Impian Sdn Bhd. Mr. Quek Cham Hong does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years, other than traffic offences. ROSLAN BIN HJ YAHYA (Independent Non-Executive Director) Encik Roslan Bin Hj Yahya, a Malaysian aged 58, was appointed to the Board on 21 March He is also the Chairman of the Audit Committee and a member of the Nomination Committee. He obtained his Associate Chartered Institute of Bankers from the United Kingdom and has been in the banking and finance industries for 30 years. He was the Chief Executive Officer of Kewangan Usaha Bersatu Bhd and the Executive Vice Chairman of South Johor Equities Sdn Bhd. Encik Roslan Bin Hj Yahya does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years, other than traffic offences. MICHAEL LIM HEE KIANG (Independent Non-Executive Director) Mr. Michael Lim Hee Kiang, a Malaysian aged 60, was appointed to the Board of Dijaya on 20 September He is also a member of the Audit Committee and the Chairman of the Nomination and Remuneration Committees. He obtained a LLB with Honours and LLM with Distinction from the Victoria University of Wellington, New Zealand in 1972/1973. He was admitted as a Barrister and Solicitor to the Supreme Court of New Zealand in In 1974, he was admitted to the High Court, Sarawak and Brunei and subsequently to the High Court of Malaya in He was a lecturer at the Law Faculty, University of Malaya for three years from 1975 to He is currently an Advocate and Solicitor with Messrs. Shearn Delamore & Co. where he has been a partner with the firm for the last 30 years. He also sits on the board of DKSH Holdings (Malaysia) Berhad, Selangor Properties Berhad, Paragon Union Berhad, Major Team Holdings Berhad, Wawasan TKH Holdings Berhad and Insas Berhad. Mr. Michael Lim Hee Kiang does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years. DATO AHMAD HASSAN BIN OSMAN (Independent Non-Executive Director) Dato Ahmad Hassan Bin Osman, a Malaysian aged 70, was appointed to the Board on 2 August He graduated from the University of Malaya, Kuala Lumpur with a Bachelor of Arts Degree in Later in 1968, he was awarded Certificate In Management Analysis by the Harvard University Advisory Group. He was also awarded the Fellowship of the Economics Institute from the University of Colorado, Boulder, United States of America. In 1978, he obtained a Master of Arts in Economics from the University of Wisconsin, Madison, United States of America. He has vast experience in the public service, spanning a period of over 30 years. His last post with the Government was as the Secretary-General of the Ministry of Housing and Local Government, Malaysia. Upon retirement, he was appointed as a Director to the Islamic Development Bank based in Jeddah, Saudi Arabia from 1994 to His current directorship in other public companies includes Kimble Corporation Berhad and Suiwah Corporation Berhad. Dato Ahmad Hassan does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years, other than traffic offences.

9 DIJAYA CORPORATION BERHAD (47908-K) 7 PROFILE OF THE BOARD OF DIRECTORS LOH CHEN PENG (Independent Non-Executive Director) Mr. Loh Chen Peng, a Malaysian aged 54, was appointed to the Board on 22 March He is also a member of the Audit, Nomination and Remuneration Committees. He is an accountant by profession and a member of the Malaysian Institute of Certified Public Accountants ( MICPA ). He started his career with an international accounting firm in 1975 and gained membership to MICPA. He then joined a merchant banking group in 1980 and for the next 13 years, held senior management positions in the areas of corporate finance and corporate banking. Thereafter he had a short stint with a stock broking group. In 1994, he helped establish a commercial bank and served on its Executive Committee of Directors until He is now involved in some private ventures and is an Independent Non-Executive Director of Major Team Holdings Berhad and Berjaya Media Berhad (formerly known as Nexnews Berhad). Mr. Loh Chen Peng does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years. ROHANA BINTI TAN SRI MAHMOOD (Independent Non-Executive Director) Cik Rohana Binti Tan Sri Mahmood, a Malaysian aged 54, was appointed to the Board on 10 November Cik Rohana holds a Bachelor of Arts (Hons) in Politics from Essex University and Masters in International Relations from the University of Sussex, United Kingdom. Cik Rohana s working experience encompasses both the private and government sectors. Cik Rohana is the Chairman of Ethos Capital Sdn Bhd, a RM200 million private equity fund that invests in ASEAN companies. She is also the Deputy President and Founding Member of the Kuala Lumpur Business Club (KLBC) and Vice Chairman, Treasurer and Board Member of the Pacific Basin Economic Council (PBEC). Prior to this, she was with the Institute of Strategic and International Studies Malaysia (ISIS), and the Ministry of Foreign Affairs in Malaysia. Rohana is actively involved in business, principally in the field of education; she is the Chairman of Masterskill Sdn Bhd and a Director of KDU College Sdn Bhd and KDU Smart School Sdn Bhd. In addition, she also sits on the Board of various public listed companies, including Paramount Corporation Berhad and TH Group Berhad. DATUK SERI PANGLIMA MOHD ANNUAR BIN ZAINI (Independent Non-Executive Director) Datuk Seri Panglima Mohd Annuar Bin Zaini, a Malaysian aged 57, was appointed to the Board on 31 July He holds a Master of Arts in Law & Diplomacy from The Fletcher School of Laws & Diplomacy, Tufts University, United States of America and a Bachelor of Arts with honours in Economics from University Kebangsaan Malaysia. He began his carrier in the government service as an Administrative and Diplomatic Officer in He served the Malaysian Government at various ministries and departments and was the Senior Private Secretary to the Minister of Home Affairs from 1981 to From 1991 to 1993, he was the Principal Assistant Director of the Perak State Economic Planning Unit. In 1993, he was appointed General Manager of The Perak Foundation, a position he held until 1999, before he chose to take an optional retirement from the government service. He has been appointed the Chairman of Malaysian National News Agency (BERNAMA) since February Also in February 2004, His Royal Highness ( HRH ) The Sultan of Perak consented his appointment as Member of the Council of Elders to HRH Sultan of Perak. He is a Distinguished Fellow to Institute of Strategic and International Studies ( ISIS ) Malaysia and Fellow to Institut Sosial Malaysia ( ISM ) and a Member of the Advisory Board of Public Complaints Bureau of the Prime Minister s department. He is a member of the Board of Directors of Universiti Malaya and Chairman of the University Malaya Specialist Centre. Since August 2007, he has been appointed the Special Advisor to the Prime Minister of Northern Corridor Economic Region (NCER) and in December 2007, he was appointed as Adjunct Professor of NCER Research Centre, Universiti Utara Malaysia. On the corporate sector, he holds directorships in Malaysian Airline System Berhad, Linkedua (Malaysia) Berhad and Berjaya Corporation group of companies and a few private limited companies. He is also the Group Corporate Advisor of TSH Resources Berhad and Multi Media Synergy Corporation Sdn Bhd. Datuk Seri Panglima Mohd Annuar does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. He has not been convicted for any offence within the past 10 years. Cik Rohana Binti Tan Sri Mahmood does not have any family relationship with any Director and/or major shareholder of Dijaya, nor any personal interest in any business arrangement involving the Company. She has not been convicted for any offence within the past 10 years.

10 8 DIJAYA CORPORATION BERHAD (47908-K) Chairman s Statement Penyata Pengerusi Tropicana Golf & Country Resort is sprawled over a 253-hectare site amidst lush tropical greenery and scenic views. Tropicana Golf & Country Resort merangkumi kawasan seluas 253 hektar di tengah-tengah kehijauan tropika dan pemandangan yang indah. Dear Shareholders, On behalf of the Board of Directors, I am pleased to present the Annual Report and Audited Financial Statements of the Group for the year ended 31 December OVERVIEW AND FINANCIAL PERFORMANCE Despite a weaker external environment, the Malaysian economy continued to strengthen. Real gross domestic product (GDP) growth for 2007 increased to 6.3%, up from 5.9% in 2006*, owing to robust domestic demand driven by strong private consumption and investment activities. (* Source: Bank Negara Malaysia Annual Report 2007) However, inflationary pressures arising from escalating global commodity prices and heightened downside risks to growth as a consequence of unstable global financial markets were areas of concern. On the domestic front, the real estate sector expanded during the year. Growth in the non-residential segment grew further in tandem with robust business activities, with a sharp increase in demand for office space particularly in Kuala Lumpur. The strong growth in private consumption had also stimulated demand from retail properties. Activity in the residential sub-sector remained positive during the year following several measures introduced by the Government which included the liberalization of ownership for foreigners in the upmarket properties and the waiver of real property gain tax. Nevertheless, the property development business continued to face demanding conditions associated with higher construction costs arising from rising prices of raw materials, energy costs including firmer oil prices, besides a competitive business environment compounded by an increase in the supply of properties particularly in the upmarket segment. Notwithstanding the immense challenges faced by the industry, Management remained steadfast in its business strategies to maintain its strong presence in the forefront of the property sector driven by commitment, integrity and professionalism. Though the pragmatic and risk management approaches would always remain relevant and continued to be adopted, Management also emphasized on enhancing its competitiveness and comparative advantages by making more efforts to extract better value from its strategic initiatives, through effective market intelligence, timely product innovation, creative marketing and excellent customer service. Para Pemegang Saham, Bagi pihak Lembaga Pengarah, dengan sukacitanya saya membentangkan Laporan Tahunan dan Penyata Kewangan Beraudit Kumpulan bagi tahun kewangan berakhir 31 Disember TINJAUAN DAN PRESTASI KEWANGAN Ekonomi Malaysia terus kukuh walaupun di kelilingi persekitaran luar yang semakin lemah. Pertumbuhan Keluaran Dalam Negara Kasar (KDNK) untuk tahun 2007 meningkat kepada 6.3%, penambahan daripada 5.9% pada tahun 2006*, disebabkan permintaan domestik yang teguh dipacu oleh penggunaan swasta dan aktiviti pelaburan yang kukuh. (* Sumber: Laporan Tahunan Bank Negara Malaysia 2007) Namun begitu, tekanan inflasi akibat daripada kenaikan harga komoditi dunia dan peningkatan risiko penurunan terhadap pertumbuhan akibat pasaran kewangan dunia yang tidak stabil menjadi perkara yang membimbangkan. Di dalam negara, sektor hartanah berkembang pada tahun ini. Pertumbuhan di segmen bukan-kediaman terus meningkat selari dengan aktiviti perniagaan yang teguh, dengan kenaikan mendadak permintaan untuk ruang pejabat terutama di Kuala Lumpur. Pertumbuhan yang kukuh dalam penggunaan swasta juga merangsang permintaan daripada hartanah peruncitan. Aktiviti di sub-sektor kediaman kekal positif dalam tahun tinjauan berikutan pelbagai langkah yang diperkenalkan oleh Kerajaan termasuk pelonggaran syarat-syarat pemilikan oleh warga asing dalam hartanah pasaran mewah dan pengecualian cukai keuntungan hartanah. Namun begitu, perniagaan pembangunan hartanah terus menghadapi suasana mencabar berkait dengan kos binaan yang semakin tinggi ekoran dari kenaikan harga bahan mentah, kos tenaga termasuk harga minyak yang ketat, selain persekitaran perniagaan yang kompetitif ditambah lagi dengan peningkatan pembekalan hartanah terutama di segmen pasaran mewah. Meskipun cabaran-cabaran besar yang dihadapi industri, pihak pengurusan tetap teguh dalam strategi perniagaannya untuk mengekalkan kehadirannya dengan kuat di barisan hadapan sektor hartanah didorong oleh komitmen, integriti dan profesionalisme. Sungguhpun pendekatan pragmatik dan pengurusan risiko akan sentiasa tetap relevan dan terus diamalkan, pihak pengurusan juga memberi penekanan dalam menambah persaingannya dan kelebihan perbandingan dengan berusaha lebih untuk menjana lebih nilai daripada inisiatif-inisiatif strategik, melalui risikan pasaran yang berkesan, inovasi produk yang tepat pada masanya, pemasaran kreatif dan khidmat pelanggan yang cemerlang.

11 Living becomes an inspiration at Casa Indah 2 with resort-style amenities and daily necessities that are just a few blocks away. Kehidupan menjadi satu inspirasi di Casa Indah 2, dengan kemudahan ala resort dan keperluan harian yang hanya beberapa blok jauh sahaja. Casa Tropicana brings a new experience of wholesome living, where one can dine, work and play in a secure resort environment. Casa Tropicana membawa satu pengalaman baru dalam kehidupan menyeluruh di mana kita mampu menjamu selera, bekerja dan beristirehat dalam persekitaran resort yang selamat. Indeed, it was heartening to note that the Group performed exceptionally well in The Group achieved a significantly higher revenue of RM270.4 million as compared to RM177.8 million in the preceding financial year, an increase of 52.1%. Incidentally, the Group also registered a higher net profit of RM48.6 million as compared to RM40.5 million in the preceding year, an increase of 20%. Both improvements in revenue and profit are primarily due to the advanced stage of completion of certain on-going development projects in 2007 ahead of schedule. At the Company level, a net profit of RM13.3 million was recorded as compared to about RM11.1 million previously, representing a reasonable improvement of 19.8%, owing to the higher revenue of RM29.0 million attained for the year arising from higher dividend income from subsidiaries. Notwithstanding its good performance, the Group s key business model leveraging on its pioneering efforts in the high-end, low density gated and guarded lifestyle resort development which had proven to be resilient, would be closely reviewed and changes would be made to ensure its relevance and ability to contribute to the bottomline, when necessary. OPERATIONAL REVIEW Resort and Property It is well known that the blue-chip 27-hole golf course at the Tropicana Golf & Country Resort ( Tropicana ) is a popular landmark which continued to attract golfing enthusiasts and professionals to test their skills on its challenging terrain and lush green serene surroundings. Its 350,000 square feet clubhouse with its comprehensive range of dining, sporting and leisure facilities continues to be a perfect and welcome respite from the hectic city life and provides an ideal venue for sports, social, recreational and business events for the public and its 5,200 members, who are assured the best in maintaining their healthy family lifestyles. Moving to resort development in Tropicana, both Green Acres 1 comprising of upmarket semi-detached houses and its sequel Green Acres 2 with luxury linked houses, semi-detached units and prime bungalow lots were successfully completed ahead of time in 2003 and 2005 respectively. For the strata titled properties, sales of the Casa Tropicana Condominiums comprising 1,217 units had been good with 70% sold. The construction of 4 blocks of condominiums have been completed with certificate of fitness. Yang pasti, kami rasa amat gembira kerana Kumpulan telah mencatatkan pencapaian yang luar biasa dalam tahun Kumpulan mencapai hasil yang ketara lebih tinggi sebanyak RM270.4 juta berbanding RM177.8 juta pada tahun kewangan sebelum ini, peningkatan sebanyak 52.1%. Kebetulan pula, Kumpulan juga mencatat keuntungan bersih yang lebih tinggi sebanyak RM48.6 juta berbanding RM40.5 juta di tahun sebelum ini, peningkatan sebanyak 20%. Kedua-dua pencapaian tersebut, dalam hasil dan keuntungan, adalah terutamanya disebabkan tahap penyiapan yang sudah di peringkat lanjutan dan lebih awal dari dijadualkan untuk sebahagian projek pembangunan sedang berlangsung dalam tahun Di peringkat Syarikat, untung bersih sebanyak RM13.3 juta dicatatkan berbanding RM11.1 juta sebelum ini. Ini merupakan peningkatan yang munasabah sebanyak 19.8% disebabkan peningkatan hasil sebanyak RM29.0 juta yang dicapai untuk tahun tinjauan ekoran dari pendapatan dividen yang lebih tinggi daripada anak-anak syarikat. Meskipun prestasi baik, kunci model perniagaan Kumpulan bersandarkan usaha-usaha awal perintisan di dalam pembangunan gaya hidup resort yang bertahap mewah, kepadatan penduduk yang rendah, berpagar dan dikawal, yang terbukti mampu bertahan, akan diawasi dan dikaji semula dan perubahan akan dilakukan untuk memastikan kesesuaiannya dan kemampuannya untuk menyumbang kepada keperluan paling asas, bila perlu. KAJIAN OPERASI Resort dan Hartanah Sudah dikenali ramai bahawa padang golf ulung 27 lubang di Tropicana Golf & Country Resort ( Tropicana ), merupakan mercu tanda yang popular yang terus menarik peminat dan pemain golf profesional untuk menguji kemahiran mereka di kawasan tanah yang mencabar dan persekitaran yang subur menghijau penuh ketenangan. Rumah kelab berukuran 350,000 kaki persegi dengan pelbagai kemudahan yang komprehensif untuk jamuan, bersukan, dan bersantai, terus menjadi ianya sesuai dan mendapat sambutan sebagai tempat istirehat dari kesibukan kehidupan bandar dan memberi lokasi yang ideal untuk acara sukan, sosial, riadah dan perniagaan untuk awam dan ahli-ahlinya seramai 5,200 orang, yang dijamin dapat mengekalkan gaya hidup berkeluarga yang sihat. Beralih kepada pembangunan resort di Tropicana, kedua-dua projek Green Acres 1 yang terdiri dari unit rumah berkembar pasaran mewah dan susulannya projek Green Acres 2 dengan percampuran kediaman rumah teres mewah, rumah berkembar dan lot banglo utama juga telah disiapkan lebih awal dari dijadualkan masing-masing pada tahun 2003 dan Untuk hartanah di bawah hak milik strata, jualan Casa Tropicana Condominiums yang terdiri daripada 1,217 unit amatlah baik dengan 70% telah dijual. Pembinaan 4 blok kondominium telah pun siap berserta sijil kelayakan.

12 Redefining the lavish lifestyle Tropicana Grande aims to offer luxurious units with a breathtaking view of the golf course. Mencipta gaya hidup baru yang unggul Tropicana Grande menawarkan unit mewah dengan pemandangan padang golf yang indah. Villa Green is the latest masterpiece at Damansara Indah Resort Homes that incorporates good feng shui elements. Villa Green adalah reka cipta terkini di Damansara Indah Resort Homes yang dibina menurut elemen feng shui yang baik. With respect to the Merchant Square, Tropicana s maiden commercial project comprising two blocks of 5-storey lifestyle shop offices with lifts involving a total of 32 shop units and 128 office units, response was excellent with 99% sold. The project had also been successfully completed with certificate of fitness issued. Located adjacent to Tropicana is the Group s second golf resort project known as the Damansara Indah Resort Homes ( Damansara Indah ) which is gaining prominence in the upmarket property scene. It has evolved into another popular exclusive gated residential community. Upmarket development in this resort such as the 41 units of Green Haven Resort Villas and 38 units of 3-storey semi-detached houses namely Villa Green 2 had been completed, with all the units sold. Spacious layouts and quality finishes have become hallmarks of our projects. Susunatur yang luas dan kelengkapan yang berkualiti merupakan tanda ciri projek kami. Living it up at Casa Suites A brand new residential development that complements the urban lifestyle in cosmopolitan Petaling Jaya city. Hidup bergaya di Casa Suites Satu pembangunan kediaman terkini yang melengkapkan gaya hidup kota di bandaraya Petaling Jaya yang kosmopolitan. With the success of the Villa Green brand, 86 units of 3-storey semi-detached luxury villas known as Super Fairway Villas was launched and sales of 66% were achieved. The units had been completed with certificate of fitness issued. For the maiden condominium project of Damansara Indah known as Casa Indah 1, most of the units in this project have a commanding view of the Seri Selangor Golf Course. Phase 1A comprising 418 units was launched in 2003 with sales of 91% achieved to-date. Phase 1B comprising 80 low-rise units known as Condo Villas involving two 4-storey blocks of 40 units was launched in March 2004 with 95% sold. The units had been completed and handed over to purchasers in October Berkenaan dengan Merchant Square, projek komersial pertama di Tropicana yang mengandungi dua blok kedai pejabat 5 tingkat yang bergaya dengan lif membabitkan sejumlah 32 buah kedai dan 128 unit pejabat, respons adalah memberangsangkan dengan 99% sudah dijual. Projek tersebut juga telah siap dengan berjayanya dengan sijil kelayakannya telah dikeluarkan. Terletak bersebelahan Tropicana ialah projek resort golf kedua Kumpulan dikenali sebagai Damansara Indah Resort Homes ( Damansara Indah ) yang semakin menonjol di arena hartanah pasaran mewah. Ia telah berkembang menjadi sebuah lagi komuniti kediaman berpagar eksklusif terkenal. Pembangunan pasaran mewah dalam resort ini seperti 41 unit Green Haven Resort Villas, dan 38 unit rumah berkembar 3-tingkat dikenali sebagai Villa Green 2 telah disiapkan dengan kesemua unitnya habis dijual. Dengan kejayaan jenama Villa Green, 86 unit vila mewah berkembar 3-tingkat dikenali sebagai Super Fairway Villas telah dilancarkan dengan pencapaian jualan sebanyak 66%. Unit-unit tersebut telah disiapkan berserta sijil kelayakan. Untuk projek kondominium pertama Damansara Indah, dikenali sebagai Casa Indah 1, kebanyakan unit dalam projek ini dapat melihat pemandangan Kelab Golf Seri Selangor. Fasa 1A mengandungi 418 unit telah dilancarkan pada tahun 2003 dengan jualan sebanyak 91% setakat ini. Fasa 1B terdiri daripada 80 unit bangunan binaan rendah dikenali sebagai Condo Villas membabitkan dua blok 4-tingkat sebanyak 40 unit dilancarkan pada Mac 2004 dengan jualan sebanyak 95%. Unit-unit tersebut telah pun siap dan telah diserahkan kepada pembeli pada Oktober 2006.

13 Tropicana City is set to be the next hub for shopping, dining and entertainment within the heart of Petaling Jaya city. Tropicana City bakal menjadi pusat untuk membeli belah, menjamu selera dan hiburan di tengah-tengah bandaraya Petaling Jaya. With the success of the Casa Indah brand, Casa Indah 2 was launched in early 2006 with the high-rise Block A comprising 176 units which have a nice clear view of the golf course and the green tops of the nearby forest. The launch of the high-rise Block B involving another 176 units followed shortly. Sales for both blocks were quite encouraging with total sales of 62% recorded. Block C and D comprising 39 low-rise units were released for sale in late Construction for Block A had commenced with building works being 85% completed, while for Block B, building works are in progress at the early stage. Meanwhile, piling and structural works for Block C and piling works for Block D had been completed. With the success of the Merchant Square project, plans to develop two more commercial centres are in the pipeline. One of these is proposed to be a lifestyle centre on a 5.73 acre site consisting of 50 mezzanine retail/food and beverage units, 38 loft office units and 359 office units located in Tropicana opposite the Casa Tropicana condominium, to be known as Tropicana Avenue. The project is expected to be launched in the second half of The other lifestyle commercial centre would be on a 14 acre site in Damansara Indah which is still in the planning stage. It is expected to have a pedestrian mall lined up with trees to exude a tropical resort feel, with some retail units overlooking the greens and lakes of Sri Selangor Golf Course. On the residential front, the Group also plans to develop a top grade luxury condominium project namely Tropicana Grande on a 5.17 acre site which is expected to have 298 units with large built-up areas mainly in the range of 2,200 to 4,000 sq. ft. These units are to be known as Villas in the Sky and they have commanding views of the golf course, the lake and the beautiful sunset. The project is envisaged to take off in the second half of A major office development project in Tropicana is also being planned, comprising 2 commercial office towers of 15 floors each. This proposed project is only expected to be launched in Outside the gated resorts, the Group also has other major condominium projects in the heart of Petaling Jaya known as Casa Damansara. Earlier developments such as Casa Damansara 1 and 2 comprising 320 units and 152 units respectively had been fully sold and completed. Meanwhile, construction work on Casa Damansara 3 involving about 200 units had commenced. Substructure works for this project had been completed, with superstructure works in progress. Dengan kejayaan jenama Casa Indah, Casa Indah 2 telah dilancarkan pada awal 2006, dengan Blok A yang tinggi terdiri daripada 176 unit yang mempunyai pemandangan jelas dan indah padang golf dan kehijauan puncak pokok rizab hutan berhampiran. Pelancaran Blok B sebuah lagi struktur bertingkat tinggi, membabitkan 176 unit menyusul selepas itu. Jualan untuk kedua blok tersebut agak menggalakkan dengan catatan jualan sehingga kini sebanyak 62%. Blok C dan D terdiri daripada 39 unit bertingkat rendah telah dibuka untuk jualan lewat Pembinaan Blok A telah dimulakan dan kerja-kerja pembinaan 85% siap sementara kerjakerja binaan untuk Blok B masih di peringkat awal. Sementara itu kerja memantakkan cerucuk dan struktur bagi Blok C dan kerja memantakkan cerucuk bagi Blok D, telah pun siap. Dengan kejayaan projek Merchant Square, rancangan untuk membangun dua lagi pusat komersial sedang menanti. Salah satunya dijangka menjadi pusat gaya hidup di atas tapak seluas 5.73 ekar mengandungi 50 unit mezanin untuk makan minum atau runcit, 38 unit pejabat loteng dan 359 unit pejabat terletak di Tropicana bertentangan Casa Tropicana Condominium yang akan dikenali sebagai Tropicana Avenue. Projek ini dijangkakan dilancar pada separuh penggal kedua Satu lagi pusat komersial gaya hidup adalah di atas tapak 14-ekar di Damansara Indah yang masih di peringkat perancangan. Ia dijangka mempunyai kawasan beli belah pejalan kaki dihiasi barisan pepohon untuk mewujudkan rasa resort tropika, dengan sebahagian unit kedai menghadap kehijauan dan tasik di Kelab Golf Seri Selangor. Di sektor kediaman, Kumpulan juga merancang untuk membangun projek kondominium mewah gred tertinggi yang dinamakan Tropicana Grande di atas tapak 5.17 ekar dan dirancang mempunyai 298 unit dengan keluasan binaan yang besar terutama dalam julat antara 2,200 kaki hingga 4,000 kaki persegi. Unit-unit ini akan dikenali sebagai Villas in the Sky dan dapat melihat pemandangan menarik padang golf, tasik dan matahari terbenam. Projek ini dijangka bermula pada separuh tahun kedua Projek pembangunan pejabat utama di Tropicana juga masih dalam perancangan dan akan mengandungi 2 menara pejabat komersial 15- tingkat setiap satu. Cadangan projek ini dijangkakan akan dilancar pada tahun Di luar resort berpagar ini, Kumpulan juga mempunyai projek kondominium besar di tengah-tengah Petaling Jaya dikenali Casa Damansara. Pembangunan awal seperti Casa Damansara 1 dan 2 terdiri dari 320 unit dan 152 unit masing-masing, telah siap dan habis dijual. Sementara itu kerja pembinaan untuk Casa Damansara 3 membabitkan 200 unit telah bermula. Kerja-kerja sub-struktur untuk projek ini sudah pun siap manakala kerja superstruktur sedang berlangsung.

14 Well trained and efficient teams provide 24-hour security at Tropicana. Pasukan yang terlatih dan cekap menyediakan kawalan keselamatan 24-jam di Tropicana. Tropicana Mall will feature over 200 retail outlets offering many daily conveniences such as a hypermarket, bookstore, cineplex and a variety of F&B outlets. Tropicana Mall akan menampilkan lebih 200 ruang runcit yang menawarkan pelbagai kemudahan harian seperti pasaraya mega, kedai buku, panggung wayang dan pelbagai jenis restoran. Tropicana Avenue is a commercial development that is slated to be the next hot spot for business, entertainment and retail. Tropicana Avenue merupakan satu pembangunan komersial yang bakal menjadi tumpuan untuk perniagaan, hiburan dan peruncitan. Beside the Casa Damansara is the Group s established commercial venue, namely the Damansara Intan e-business Park which is well-known to the local business community. Next to this commercial centre is another condominium development known as Casa Suites Serviced Damansara Intan involving a 22-storey block with 210 units of trendy serviced apartments which was launched in late 2005 and attracted keen interest with 83% sales achieved to-date. The construction of this project has been completed in early On the adjacent 9 acre commercial site, the Group had launched a major mixed retail and commercial development known as the Tropicana City with a total built-up area of 1.2 million sq. ft. comprising a 4-level recreational, shopping and entertainment complex known as the Tropicana Mall with a 390,000 sq. ft. net lettable area, 601 units of designer suits namely the Tropics and a 12 storey signature office block with a net lettable area of 105,000 sq. ft. which is targeted for lease. The Mall is planned to be strategic niche player in the local retail and entertainment scene and would complement the larger regional malls in the area. It will consist of 4 levels, namely festival market place, fashion and events, family, fun and entertainment with more than 200 retail outlets. The Mall will be retained for rental. The anchor tenant shall be the popular French hypermarket Carrefour which had leased a space for 125,000 sq. ft. in the mall. Meanwhile, the Tropics was launched in September 2006 with very satisfactory response. All the 70 units with the loft design had been sold. Overall sales were good with 70% achieved. The whole Tropicana City project is envisaged to be completed in late 2009, though the Tropicana Mall has its completion targeted for late For the mall, 97% structural works had been completed. Overall building works for the whole project is 48% completed. Outside the Petaling Jaya area, the Group also has a major residential and commercial development comprising 1,000 apartments and shops on the proposed 20.5 acre land located in the prime southern Kuala Lumpur growth corridor opposite the Mines Resort Lake and golf course. In November 2004, phase 1A of this Fortune Park project was launched with a high rise block of 190 units of apartments and phase 1B involving another of 190 units of apartments were put on the market in late Overall sales were very encouraging with 71% achieved. Both blocks had been completed with certificate of fitness. Sebelah Casa Damansara merupakan kawasan komersial Kumpulan yang mantap, iaitu Damansara Intan e-business Park yang sudah terkenal di kalangan komuniti perniagaan tempatan. Bersebelahan pusat komersial ini adalah satu lagi pembangunan kondominium dikenali Casa Suites Serviced Damansara Intan yang membabitkan blok 22- tingkat dengan 210 unit pangsapuri berkhidmat yang bergaya dilancarkan akhir 2005 dan dapat menarik minat ramai dengan pencapaian 83% jualan hingga ke hari ini. Pembinaan projek ini telah siap awal Di tapak komersial 9 ekar bersebelahan, Kumpulan telah melancarkan pembangunan besar bercampur runcit dan komersial dikenali sebagai Tropicana City dengan keluasan binaan 1.2 juta kaki persegi dan mengandungi kompleks 4-tingkat untuk riadah, membeli-belah dan hiburan dikenali sebagai Tropicana Mall dengan 390,000 kaki persegi keluasan penyewaan, 601 unit serangkaian bilik direka bentuk khas yang dinamakan the Tropics dan blok pejabat 12-tingkat khas dengan ruang penyewaan berjumlah 105,000 kaki persegi yang disasarkan untuk pajakan. Mall ini dirancang untuk menjadi pemain niche yang strategik di lingkungan peruncitan dan hiburan tempatan dan akan melengkapkan mall yang lebih besar di kawasan tersebut. Ia akan mengandungi 4 aras, iaitu tempat pesta pasaran, fesyen dan acara-acara keraian, keluarga, keceriaan dan hiburan dengan lebih 200 unit ruang runcit. Mall ini akan dikekalkan untuk penyewaan. Penyewa utama adalah pasar raya besar Perancis yang popular, Carrefour, yang telah menyewa ruang seluas 125,000 kaki persegi di dalam Mall tersebut. Sementara itu, Tropics dilancarkan pada September 2006 dengan sambutan sangat memuaskan. Kesemua 70 unit dengan reka bentuk loteng habis dijual. Jualan keseluruhannya adalah baik dengan pencapaian 70%. Seluruh projek Tropicana City dijangka siap lewat 2009, walaupun Tropicana Mall di sasar akan siap pada akhir % kerja-kerja struktural untuk Mall tersebut telah pun siap. Kerja binaan keseluruhan bagi seluruh projek adalah 48% siap. Di luar kawasan Petaling Jaya, Kumpulan juga mempunyai pembangunan utama kediaman dan komersial merangkumi 1,000 unit pangsapuri dan kedai di atas tanah yang dicadangkan seluas 20.5 ekar di kawasan prima di Koridor Pembangunan Selatan Kuala Lumpur bertentangan dengan tasik dan padang golf Mines Resort. Pada November 2004, fasa 1A projek Fortune Park telah dilancarkan dengan blok bertingkat tinggi 190 unit pangsapuri dan fasa 1B membabitkan 190 unit lagi pangsapuri ditawarkan lewat Keseluruhan jualan amat menggalakkan dengan pencapaian 71%. Kedua blok telah siap dengan sijil kelayakan.

15 Casa Kiara 2, a luxury condominium development which is strategically located within Mont Kiara. Casa Kiara 2 adalah satu pembangunan kondominium mewah yang berkedudukan strategik di kawasan Mont Kiara. Located in Balanagar, Hyderabad, Tropicana Residences consists of 17 exclusive residential apartment buildings set on lush 20-acre private landscaped gardens. This master plan was designed to follow the principles of Vaastu Shastra, a traditional Hindu art of town planning and architecture. Terletak di Balanagar, Hyderabad, Tropicana Residences merangkumi 17 bangunan pangsapuri kediaman eksklusif yang dibina di atas 20 ekar taman landskap peribadi. Pelan induk ini telah direka mengikut prinsip-prinsip Vaastu Shastra, satu seni tradisi Hindu dalam perancangan bandar dan pembinaan. Besides in-house projects, the Company was earlier appointed as project manager for the development of a condominium project involving 233 units in the Mont Kiara area know as Casa Kiara 1, which had been completed with 97% of the units sold. With this success, the Company also managed Casa Kiara 2 comprising another 206 units which was launched in November Construction of this project is in progress with sales of 60% attained. Hence, leveraging on its reputation in the upmarket residential development and recently commercial development, its extensive indepth experience and strong expertise in project management besides its establishing brand name, the Group continued to seek out similar collaborations including joint-ventures with landowners in good locations both in Malaysia and overseas. Indeed, in November 2006, the Company through Dijaya-Malind JV (Mauritius) Limited ( DMJML ) has entered into a Development Agreement with Telangana Spinning & Weaving Mills Limited ( Telangana ) to undertake a residential and commercial development on about 25.4 acres of Telangana s land in Hyderabad, India ( Proposed Development ). Subsequently, in April 2007, both DMJML and Telangana entered into an agreement to facilitate the appointment of Dijaya-Malind Properties (India) Pte Ltd a newly formed subsidiary of DMJML then to undertake the Proposed Development. The Proposed Development is expected to involve a total 2,467 units of apartments and commercial development of approximately 500,000 sq. ft. of gross floor area. Phase I of the project will involve 3 blocks comprising 335 units of 2-bedroom and 3-bedroom apartments and a Club House with swimming pool. Plans are being finalised for submission to the relevant authorities in Hyderabad, India. For this Proposed Development, the Group seeks to replicate its wellknown life-style home concept in a gated community. It is also expected to serve as a launching pad for future property projects by the Group in India. Similar opportunities are being sought in other major urban centres in India such as Bangalore and Chennai. Notwithstanding the huge potential of the Indian real estate market, the Group would also explore property business opportunities in other emerging economies such as Vietnam and Indonesia. Selain projek sendiri, Syarikat telah dilantik sebagai Pengurus Projek untuk pembangunan satu projek kondominium melibatkan 233 unit di kawasan Mont Kiara dikenali sebagai Casa Kiara 1, yang telah siap dengan 97% unit telah dijual. Dengan kejayaan ini, Syarikat juga menguruskan Casa Kiara 2 yang mengandungi 206 unit lagi yang telah dilancarkan pada November Pembinaan projek ini sedang berjalan dan pencapaian jualan adalah sebanyak 60%. Jesteru itu bersandarkan pengalaman dan kepakaran yang meluas lagi mendalam di dalam pengurusan projek, rekod cemerlang dan reputasi di dalam pembangunan perumahan pasaran mewah selain penjenamaan yang kukuh, Kumpulan akan terus mencari peluang penggabungan seumpamanya termasuk usaha sama dengan tuan-tuan tanah lain yang memiliki lokasi baik di dalam Malaysia dan luar negara. Pada November 2006, Syarikat melalui subsidiari tidak langsung Dijaya- Malind JV (Mauritius) Limited ( DMJML ), telah memasuki Perjanjian Pembangunan dengan Telangana Spinning & Weaving Mills Limited ( Telangana ) untuk melaksanakan pembangunan perumahan dan komersial seluas 25.4 ekar di atas tanah Telangana di Hyderabad, India ( Cadangan Pembangunan ). Berikutan itu, pada April 2007, keduadua DMJML dan Telangana telah memasuki perjanjian untuk menerima pelantikan Dijaya-Malind Properties (India) Pte Ltd, subsidiari baru DMJML untuk melaksanakan Cadangan Pembangunan. Cadangan Pembangunan tersebut dijangka melibatkan sejumlah 2,467 unit pangsapuri dan pembangunan komersial dengan keluasan kasar lantai dianggarkan 500,000 kaki persegi. Fasa 1 projek berkenaan akan melibatkan 3 blok yang mengandungi 335 unit pangsapuri 2-bilik tidur dan 3-bilik tidur dan satu Rumah Kelab berserta kolam renang. Pelan sedang dalam persiapan di peringkat akhir untuk diajukan kepada pihak berkuasa yang berkenaan di Hyderabad, India. Untuk Cadangan Pembangunan ini, Kumpulan akan mereplikakan konsep gaya hidupnya yang terkenal dalam komuniti berpagar. Ia juga diharapkan menjadi tapak pelantaran untuk projek hartanah Kumpulan di masa hadapan di India. Peluang yang sama akan dicari di pusat bandar utama lain di India seperti Bangalore dan Chennai. Meskipun potensi besar pasaran hartanah di India, Kumpulan juga akan meneroka peluang perniagaan hartanah di negara ekonominya membangun seperti Vietnam dan Indonesia.

16 TSB Commercial Centre located at Sungai Buloh offers a good mix of business and retail units. TSB Commercial Centre yang terletak di Sungai Buloh menawarkan satu penggabungan baik dari segi perniagaan dan runcit. Back to the local front, the Company through its indirect wholly-owned subsidiary, Nadi Jelita Sdn Bhd had on 12 November 2007 entered into a Joint-Venture Agreement with Aliran Firasat Sdn Bhd ( AFSB ) to develop AFSB s commercial land measuring approximately acres in Pekan Baru Sungai Buloh, Selangor. The proposed development is known as TSB Commercial Centre and it involves 173 units of 3 and 4 storey shop offices and 36 low cost shops within a 5½ storey multi-level car park. Phase 1 and 2 comprising a total of 136 units of shop offices was launched recently and sales were encouraging with 53% achieved. Besides collaborations with landowners as mentioned above, the Group would continue to pursue quality development lands or those lands with strong development potential in good locations for outright purchase to replenish its land bank. In view of the acute lack of large tracts of land with development potential in the Klang Valley and its vicinity, the Group intends to acquire several smaller parcels in good locations for development with the aim of a faster turnaround time to generate better returns over shorter durations and this forms part of the Group s overall business strategy. Incidentally, the Group had entered into agreements with various landowners to purchase parcels of land over the past 6 months. On the 19 December 2007, the Company through its wholly-owned subsidiary, JMI Manufacturing Sdn Bhd (now known as Dijaya Property Sdn Bhd) entered into an agreement to acquire 2 parcels of freehold lands measuring about acres in Mukim Kajang, Daerah Hulu Langat, Selangor. These properties are strategically located in the major suburb of Balakong/Kajang and in the neighbourhood of Country Heights and Kajang Heights. The Group proposed to carry out residential development with a preliminary estimated gross development value of RM350 million on the sites. On the 6 February 2008, Nadi Jelita Sdn Bhd also entered into an agreement to purchase 4 parcels of freehold agricultural lands measuring about acres in Pekan Jenjarom, Daerah Kuala Langat, Selangor. The properties concerned are strategically situated within the commercial centre of Jenjarom with development potential and is accessible from the Klang-Banting Road. Mixed development with a preliminary estimated gross development value of RM270 million is being planned. Balik ke pasaran tempatan, Syarikat melalui anak syarikat milik penuh tidak langsung, Nadi Jelita Sdn Bhd telah, pada 12 November, 2007 menandatangani Perjanjian Usaha Sama dengan Aliran Firasat Sdn Bhd ( AFSB ) untuk membangunkan tanah komersial AFSB seluas lebih kurang ekar di Pekan Baru Sungai Buloh, Selangor. Cadangan pembangunan itu dikenali sebagai TSB Commercial Centre dan melibatkan 173 unit kedai pejabat 3 dan 4 tingkat dan 36 kedai kos rendah yang terletak di dalam tempat letak kereta setinggi 5½ tingkat. Fasa 1 dan 2 mengandungi sejumlah 136 unit kedai pejabat telah dilancarkan baru-baru ini dan jualan adalah menggalakkan dengan pencapaian 53% setakat ini. Selain dari bergabung dengan pemilik tanah seperti disebut di atas, Kumpulan akan terus mencari tanah pembangunan yang bermutu atau tanah yang mempunyai potensi besar untuk pembangunan di lokasi yang baik untuk dibeli terus bagi melengkapi dana tanahnya. Memandangkan kekurangan genting bidang tanah yang mempunyai potensi pembangunan di Lembah Klang ini dan kawasan persekitarannya, Kumpulan berhasrat untuk mendapatkan tanah yang lebih kecil di lokasi yang baik untuk pembangunan dengan tujuan mendapat pusingan masa lebih pantas untuk menjana pulangan yang lebih baik dalam masa yang lebih pendek. Ini merupakan sebahagian daripada strategi menyeluruh perniagaan Kumpulan. Berikutan itu, dalam tempoh masa 6 bulan yang lalu, Kumpulan telah menandatangani perjanjian dengan pelbagai pemilik tanah untuk membeli beberapa bidang tanah. Pada 19 Disember 2007, Syarikat melalui anak-syarikat milik penuh, JMI Manufacturing Sdn Bhd (sekarang dikenali sebagai Dijaya Property Sdn Bhd), telah menandatangani perjanjian untuk membeli 2 bidang tanah pegangan bebas berukuran ekar di Mukim Kajang, Daerah Hulu Langat, Selangor. Tanah tersebut terletak di lokasi yang strategik di pinggiran utama di Balakong/Kajang dan di kawasan kejiranan Country Heights and Kajang Heights. Kumpulan bercadang melaksanakan pembangunan kediaman dengan anggaran kos pembangunan permulaan kasar bernilai RM350 juta di tapak tersebut. Pada 6 Februari 2008, Nadi Jelita Sdn Bhd juga telah menandatangani perjanjian untuk membeli 4 bidang tanah pertanian pegangan bebas berukuran lebih kurang ekar di Pekan Jenjarom, Daerah Kuala Langat, Selangor. Tanah tersebut berada di lokasi strategik di pusat komersial Jenjarom dengan potensi pembangunan dan mudah sampai melalui Jalan Klang-Banting. Pembangunan bercampur dengan anggaran kasar kos pembangunan awal bernilai RM270 juta sedang dirancang.

17 DIJAYA CORPORATION BERHAD (47908-K) 15 CHAIRMAN S STATEMENT PENYATA PENGERUSI Subsequently, on the 20 February 2008, Dijaya Property Sdn Bhd entered into 2 agreements with several individuals to acquire 2 parcels of freehold agricultural land measuring approximately acres in the Mukim of Cheras, District of Hulu Langat, Selangor. These properties are located in Cheras, surrounded by matured residential developments such as Taman Sri Sekamat, Taman Rakan and Taman Lingkaran Nur, and have development potential. Here we plan to have a residential development with a preliminary estimated gross development value of around RM200 million. Manufacturing Tenaga Kimia Sdn Bhd, our 33%-owned associate company did not perform well in 2007, recording a significantly lower consolidated net profit of RM2.61 million as compared to RM5.15 million registered in the preceding financial year. The weaker profit performance was mainly attributable to substantial increase in raw material costs and the delay in the implementation of some relevant projects. DIVIDEND The Board had recommended, subject to shareholders approval, a first and final dividend of 4% less 26% Malaysian Income Tax amounting to RM7,684,917 (2.96 sen net per share) in respect for the year ended 31 December CORPORATE DEVELOPMENT As announced on the 17 January 2008, the Company has proposed to undertake the following: (i) A renounceable two-call Rights Issue of up to 214,115,875 new ordinary shares of RM1.00 each ( Rights Shares ) in the Company together with up to 142,743,917 free detachable warrants ( Warrants ) at an issue price of RM1.00 per Rights Share on the basis of 3 Rights Shares together with 2 free warrants for every 4 existing ordinary shares of RM1.00 held in the Company as at entitlement date. ( Proposed Rights Issue With Warrants ). (ii) Proposed Increase in the authorised share capital of the Company from RM500,000,000 comprising 500,000,000 ordinary shares of RM1.00 each to RM1,000,000,000 by the creation of an additional 500,000,000 new shares. ( Proposed Increase In Authorised Capital ) (iii) Proposed amendments to the Memorandum and Articles of Association of the Company. ( Proposed Amendments ) In addition to the above, we have the proposed exemption sought by Tan Sri Dato Tan Chee Sing ( TSDT ) for an exemption under Practice Note of the Malaysian Code of Takeovers & Mergers 1998 ( Code ) from the obligation to undertake a mandatory offer for the remaining shares in the Company not already owned by TSDT and parties acting in concert, in the event TSDT incurs such an obligation under the Code upon the completion of the Proposed Rights Issue with Warrants. ( Proposed Exemption ) On the 28 March 2008, the Securities Commission ( SC ) had approved the Proposed Rights Issue With Warrants. On the 28 March 2008, Bank Negara Malaysia had also approved the issuance of Warrants pursuant to the Proposed Rights Issue With Warrants to its non-resident shareholders. The Proposed Rights Issue with Warrants is still subject to the approval of the shareholders of the Company and the approval of Bursa Malaysia Securities Berhad ( Bursa Securities ) for the admission of the Warrants to the official List of Bursa Securities and for the listing and quotation of the Rights Shares, Warrants and the new shares to be issued pursuant to the exercise of the Warrants on the Main Board of Bursa Securities. Selepas itu, pada 20 Februari 2008, Dijaya Property Sdn Bhd telah menandatangani 2 perjanjian dengan beberapa individu untuk 2 bidang tanah pertanian pegangan bebas berukuran lebih kurang ekar di Mukim Cheras, Daerah Hulu Langat, Selangor. Tanah tersebut berada di Cheras, di kelilingi dengan pembangunan kediaman yang sudah mampan seperti Taman Sri Sekamat, Taman Rakan dan Taman Lingkaran Nur, dan mempunyai potensi pembangunan. Di sini, kami mencadangkan untuk melaksanakan pembangunan kediaman dengan anggaran kasar permulaan kos pembangunan bernilai RM200 juta. Pengilangan Tenaga Kimia Sdn Bhd, syarikat bersekutu dimiliki 33%, tidak mencapai prestasi yang baik dalam tahun 2007, dengan mencatatkan keuntungan bersih bergabung yang jauh lebih rendah sebanyak RM2.61 juta berbanding RM5.15 juta yang dicatatkan pada tahun kewangan sebelumnya. Kekurangan dalam pencapaian keuntungan adalah disebabkan oleh kenaikan ketara kos bahan mentah dan kelewatan dalam perlaksanaan beberapa projek-projek relevan. DIVIDEN Lembaga telah mengesyorkan, tertakluk kepada kelulusan pemegang saham, dividen pertama dan akhir sebanyak 4% tolak 26% Cukai Pendapatan Malaysia sejumlah RM7,684,917 (2.96 sen sesaham bersih) bagi tahun berakhir pada 31 Disember PERKEMBANGAN KORPORAT Seperti yang diumumkan pada 17 Januari, 2008, Syarikat telah mencadangkan untuk melaksanakan perkara berikut: (i) Terbitan hak boleh serah dua-panggilan sehingga 214,115,875 saham biasa baru bernilai tara RM1.00 sesaham ( Saham Hak ) di dalam Syarikat berserta sehingga 142,743,917 waran percuma yang boleh diceraikan ( Waran ) pada harga terbitan sejumlah RM1.00 setiap Saham Hak berasaskan 3 Saham Hak berserta 2 waran percuma bagi setiap 4 saham biasa bernilai tara RM1.00 sesaham yang dipegang dalam Syarikat pada tahun kelayakan. ( Cadangan Terbitan Hak Berserta Waran ) (ii) Cadangan Pertambahan Modal dibenarkan dalam Syarikat daripada RM500,000,000 terdiri daripada 500,000,000 Saham Biasa RM1.00 setiap satu kepada RM1,000,000,000 dengan mewujudkan tambahan 500,000,000 saham baru ( Cadangan Tambahan Modal Dibenarkan ) (iii) Cadangan Pindaan kepada Memorandum dan Tataurusan Pertubuhan Syarikat. ( Cadangan Pindaan ) Tambahan lagi, kami telah mencadangkan pengecualian yang diminta oleh Tan Sri Dato Tan Chee Sing ( TSDT ) untuk pengecualian di bawah Nota Amalan Kod Malaysia mengenai Pengambilalihan dan Percantuman 1998 ( Kod ) daripada kewajipan untuk melaksanakan tawaran mandatori untuk baki saham dalam Syarikat yang belum dimiliki TSDT dan pihak yang bertindak bersama, sekiranya TSDT menghadap obligasi di bawah Kod tersebut apabila selesai Cadangan Terbitan Hak Berserta Waran. ( Cadangan Pengecualian ). Pada 28hb Mac 2008, Suruhanjaya Sekuriti ( SC ) telah meluluskan Cadangan Terbitan Hak Berserta Waran. Pada 28hb Mac 2008, Bank Negara Malaysia juga telah meluluskan terbitan Waran berkaitan dengan Cadangan Terbitan Hak Berserta Waran kepada pemegang saham bukan pemastautin. Cadangan Terbitan Hak Berserta Waran masih perlu mendapat kelulusan pemegang saham Syarikat, dan kelulusan Bursa Malaysia Securities Berhad ( Bursa Securities ) untuk penerimaan Waran tersebut ke Senarai Rasmi Bursa Securities dan untuk penyenaraian dan sebut harga Saham Hak, Waran dan saham baru yang akan diterbitkan berikutan perlaksanaan Waran di Papan Utama Bursa Securities.

18 16 DIJAYA CORPORATION BERHAD (47908-K) CHAIRMAN S STATEMENT PENYATA PENGERUSI The Proposed Increase in Authorised Capital and Proposed Amendments are subject to the approval of the shareholders of the Company. The Proposed Exemption is subject to the following approvals being obtained:- (i) the SC (ii) the independent shareholders of the Company, by way of poll in a general meeting in which interested parties are to abstain from voting. PROSPECTS Global growth is expected to moderate to 3.7% in 2008 as compared to 4.7% in 2007*. The global growth outlook will depend on the severity of the US slowdown and the extent of the adverse effects of the turmoil of its financial market on the rest of the world. Inflation is expected to remain high following sustained high food and commodity prices particularly oil. On the domestic front, the resilience of the Malaysian economy to weather a slowdown in the global economy has strengthened over the years. For the Malaysian economy, GDP is projected to expand by 5-6% in 2008*. Domestic demand is expected to remain resilient, providing strong support to the local economy against the backdrop of unfavourable global developments and strong inflationary pressures. (* Source: Bank Negara Malaysia Annual Report 2007) Nonetheless, prospects for the Group s property business are envisaged to remain challenging in view of the uncertainties ahead. Management would continue to be alert, proactive and adaptable to deal with the changing economic scenario and would spare no effort to stay ahead of our competitors. On the whole, the Group s fundamentals are relatively strong with a healthy balance sheet and unbilled sales of about RM254.2 million as at end of April Barring any unforeseen circumstances, the Group is expected to perform satisfactorily in APPRECIATION On behalf of the Board of Directors, I would like to take this opportunity to extend my warmest welcome to Datuk Seri Panglima Mohd Annuar Bin Zaini to the Board. On behalf of the Board, I wish to express my sincere thanks to our valued customers, bankers, contractors, consultants, suppliers and business associates for their continued support and cooperation, and also to the relevant government authorities for their assistance and understanding. I also wish to record my appreciation to our valued shareholders for their loyalty and patience. Lastly, I would like to extend my heartfelt congratulations to my fellow directors, management and staff of the Group for another excellent performance in 2007, and I am confident that we will all continue to work hard and strive for even greater success for the Group in the coming years. Cadangan Tambahan Modal Dibenarkan dan Cadangan Pindaan adalah tertakluk kepada kelulusan pemegang-pemegang saham Syarikat. Cadangan pengecualian tertakluk kepada kelulusan berikut: (i) SC (ii) Pemegang saham Syarikat yang bebas, melalui pungutan saham dalam Mesyuarat Agung di mana pihak berkepentingan dilarang mengundi. PROSPEK Pertumbuhan global bagi tahun 2008 dijangka sederhana pada kadar 3.7% berbanding 4.7% pada tahun 2007*. Pandangan pertumbuhan global bergantung pada betapa beratnya kesan kelembapan AS dan sejauh mana kesan pergolakan pasaran kewangannya terhadap negara lain di dunia. Inflasi dijangka kekal tinggi berikutan harga makanan dan komoditi yang terus tinggi terutama minyak. Di senario tempatan, ketahanan ekonomi Malaysia menghadapi kelembapan ekonomi global bertambah kukuh dalam beberapa tahun ini. Ekonomi Malaysia dijangka berkembangan dengan KDNK sebanyak 5 6% di 2008*. Permintaan tempatan dijangka terus bertahan, menyokong kukuh ekonomi tempatan di suasana perkembangan global yang tidak memberangsangkan dan tekanan inflasi yang kuat. (* Sumber: Laporan Tahunan Bank Negara Malaysia 2007) Namun, prospek untuk perniagaan hartanah Kumpulan dijangka terus mencabar memandangkan terdapat perkara di luar kepastian di masa depan. Pengurusan akan terus peka, proaktif dan bersesuaian untuk menangani senario ekonomi yang berubah-ubah serta tidak leka dan berusaha sungguh untuk berada di hadapan pesaing kita. Secara keseluruhan, asas kewangan Kumpulan adalah kukuh dengan penyata imbangan yang sihat dan jualan belum berbil berjumlah lebih kurang RM254.2 juta pada penghujung April Tanpa sebarang kejadian di luar dugaan, prestasi Kumpulan dijangka akan memuaskan pada tahun PENGHARGAAN Bagi pihak Lembaga Pengarah, saya ingin mengambil peluang ini untuk mengalu-alukan kedatangan Datuk Seri Panglima Mohd Annuar Bin Zaini ke Lembaga. Bagi pihak Lembaga Pengarah, saya ingin melafazkan penghargaan saya kepada pelanggan-pelanggan kita yang dimuliakan, bank, para kontraktor, perunding, pembekal-pembekal dan rakan niaga di atas sokongan dan kerjasama mereka, dan juga kepada pihak berkuasa Kerajaan yang berkenaan di atas bantuan serta persefahaman mereka. Saya juga ingin merakamkan penghargaan saya kepada pemegang saham di atas kesetiaan dan kesabaran mereka. Akhir kata, saya ingin menyampaikan ucapan tahniah yang tulus ikhlas saya kepada para pengarah, pihak pengurusan dan kakitangan Kumpulan di atas sekali lagi prestasi yang cemerlang pada tahun 2007, dan saya yakin kita akan meneruskan usaha gigih serta ketekunan ke arah kejayaan yang lebih cemerlang untuk Kumpulan pada tahun-tahun akan datang. Tan Sri Dato Seri Mohd Sedek Bin Mohd Ali Chairman / Pengerusi 3 June / Jun 2008

19 DIJAYA CORPORATION BERHAD (47908-K) 17 Other Information 18 Statement on Corporate Governance 24 Statement on Internal Control 27 Report of Audit Committee 29 Statement on Corporate Social Responsibility 30 Analysis of Shareholdings 32 List of Properties

20 18 DIJAYA CORPORATION BERHAD (47908-K) Statement on Corporate Governance The Board of Directors ( Board ) of Dijaya Corporation Berhad ( Dijaya or Company ) remains committed to achieving and maintaining high standards of corporate governance and effective application of the principles and best practices set out in the Malaysian Code on Corporate Governance ( Code ) throughout the Company and its group of companies ( Group ) to protect and enhance shareholders value as well as to support the Group s continued growth and success. This statement sets out the manner in which the Group has applied the principles of good governance and the extent of compliance by the Group with the best practices recommended by the Code throughout the year ended 31 December BOARD OF DIRECTORS Composition and Size of Board During the financial year, the Board has ten members, comprising seven independent non-executive directors and three non-independent executive directors. The Board composition complied with the requirement of the Listing Requirements of Bursa Securities whereby at least one-third of the Board must be of independent directors. Board Balance and Board Effectiveness The Board of Dijaya comprises members from diverse professional backgrounds with a wide range of expertise and experience in business, legal, financial, banking, technical and public administration for effective management of the businesses of the Group. The profiles of the directors are set out on pages 5 to 7 of this Annual Report. The Board is responsible for the review and adoption of the Group s long term strategic plan and direction, overseeing the conduct of the Group s businesses and utilisation of resources, monitoring the achievement of business objective and financial performance, reviewing the adequacy and the integrity of internal controls and risks management systems and ensuring the effective implementation of these systems. There is a clear division of responsibility in the Company. The Chairman represents the Board to shareholders and is responsible for the effective running of the Board. The Group Chief Executive Officer, assisted by the Managing Director and the Executive Director, are fully responsible for the effective running of the Group s operations and business activities and implementation of the Board s policies and decisions. The presence of experienced independent non-executive directors who comprised a majority of the Board, ensures that there is a proper check and balance in the Board, and to provide unbiased and independent views, advice and judgement, besides playing key supporting roles. It is mandatory for all members of the Board to declare their interests in any transactions undertaken by the Group. In such instance, the interested director(s) shall abstain from the decision-making process. Mr. Michael Lim Hee Kiang has been appointed as the Senior Independent Non-Executive Director of the Board to whom any concerns of the shareholders, management and others may be conveyed. Board Meetings The Directors meet on a scheduled basis once every quarter, ie, at least four times a year. Additional meetings will be convened as and when required with formal agenda for the Board to deliberate on urgent issues that require immediate decision-making. The quarterly Board meetings are scheduled in advance prior to the start of the financial year. All Board meetings are formally structured with pre-set agenda, and Board papers containing information relevant to the matters to be deliberated upon at the meetings are circulated to the Directors prior to the meetings. The Board papers include information on the latest financial, corporate development and other matters reserved specially for the Board s decision. Senior Management of the Group, external auditors and advisors are also invited to attend Board meetings on specific items on the agenda which require clarification. The Board will also be briefed on latest updates on the Group s business activities.

21 DIJAYA CORPORATION BERHAD (47908-K) 19 STATEMENT ON CORPORATE GOVERNANCE For the year 2007, a total of four Board meetings were held. Record of each of the Board members attendance is set out below: - Name of Directors Attendance % of Attendance Tan Sri Dato Seri Mohd Sedek Bin Mohd Ali 4/4 100 Tan Sri Dato Tan Chee Sing 3/4 75 Tong Kien Onn 4/4 100 Quek Cham Hong 4/4 100 Michael Lim Hee Kiang 3/4 75 Roslan Bin Hj Yahya 4/4 100 Dato Ahmad Hassan Bin Osman 4/4 100 Loh Chen Peng 3/4 75 Rohana Binti Tan Sri Mahmood 4/4 100 Datuk Seri Panglima Mohd Annuar Bin Zaini (appointed w.e.f. 31 July 2007) 2/2 100 In the intervals between Board meetings, for any matters requiring Board s decisions, the Board s approvals are obtained through circular resolutions. The resolutions passed by way of such circular resolutions are then ratified in the next Board meeting. Supply of Information and Access to Advice All directors are provided with an agenda and a set of Board papers issued in sufficient time prior to Board meetings to allow the directors to obtain further explanations and clarifications, where necessary. The Board papers include, among others, the following:- a) Quarterly financial statements; b) Corporate development; c) Business development; d) Minutes of previous Board Meeting and Audit Committee Meeting; and e) Directors Circular Resolutions The Management is responsible in providing the Board with all information that will assist the Board in discharging its responsibilities and to facilitate informed decision-making. The Directors also have access to the advice and service of the Company Secretary beside entitled to access to all information within the Group. If necessary, the directors are also entitled to seek independent professional advice relating to the affairs of the Group from external consultants including merchant bankers, financial advisors and valuers at the Company s expense in the discharge of their duties and responsibilities. Re-election of Directors/Appointments to the Board In accordance with the Company s Articles of Association ( Articles ), all directors who are appointed by the Board either to fill a casual vacancy or as an addition to the existing directors are subject to re-election by shareholders at the Annual General Meeting ( AGM ) following their appointment. The Articles also provide that at least one-third of the remaining directors be subject to re-election by rotation at each AGM including the Group Chief Executive Officer, the Managing Director and the Executive Director provided always that all the directors shall retire from their office at least once every three years. All retiring directors are eligible to offer themselves for re-election at the AGM. The Board continuously reviews its size and composition with particular consideration on its impact on the effective functioning of the Board.

22 20 DIJAYA CORPORATION BERHAD (47908-K) STATEMENT ON CORPORATE GOVERNANCE Any proposed candidate for the appointment as director of the Board will be nominated by the Nomination Committee to the Board for full deliberation. Directors Continuing Professional Development All the directors had attended and successfully completed the Mandatory Accreditation Programme and various training programmes under the Continuing Education Programme. The Directors are encouraged to attend continuing education programmes and seminars to keep abreast with current developments in the market place and with new statutory and regulatory requirements. During the year ended 31 December 2007, the training programmes and seminars attended by the Directors are as follows:- Name of Director Quek Cham Hong Michael Lim Hee Kiang Loh Chen Peng Rohana Binti Tan Sri Mahmood Datuk Seri Panglima Mohd Annuar Bin Zaini Title of Seminar/Workshops/ Courses - Conference Doing Business in India - 50 Years of Merdeka 14th Malaysian Law Conference - The New Zealand Centre of International Economic Law Inaugural Conference - Malaysian Boardroom Challenges: Impact & Implications of the Malaysia Companies (Amendment) Act 2007 (Act A 1299) - India-Malaysia Strategic Dialogue - ASEAN 100 Leadership Forum - Directors Training on Property Market - International Affairs Forum Clouds of Witness: Morals Responsibility on Planet in Peril - Second ASEAN Japan Forum for Partnership in East Asia Community Building - India-Malaysia Strategic Dialogue - UEM Director s Briefing on Government-Linked Companies Transformation - Langkawi International Dialogue 2007 All directors newly appointed to the Board will be furnished with relevant information of the Group, including familiarisation tours, where necessary. BOARD COMMITTEES The Board has delegated specific responsibilities to several committees, namely the Audit, Option, Nomination and Remuneration Committees. These Committees operate within their respective defined terms of reference approved and specific authority delegated by the Board. The Chairman of the respective committees will report to the Board the outcome of the committee meeting and are incorporated in the minutes of the Board Meeting. The Board, however, retains full responsibility for the final decision on all matters. (i) Audit Committee The Audit Committee consists of three independent non-executive directors, one of whom is a qualified Accountant with more than 20 years of experience in the finance and accounting fields. The Audit Committee assists and supports the Board in fulfilling its fiduciary responsibilities relating to the Group s financial reporting practices, accounting policies, internal controls, business ethics policies and the independence of the Group s external and internal auditors. The Audit Committee Report is set out in pages 27 and 28 of this Annual Report. (ii) Nomination Committee The Nomination Committee has been given the responsibility to recommend new appointments to the Board of Dijaya. The Nomination Committee also reviews the effectiveness of the existing Board, the committees of the Board and the contribution of each Director. The Nomination Committee comprises three (3) members, all being independent non-executive directors namely Michael Lim Hee Kiang (Chairman), Roslan Bin Hj Yahya and Loh Chen Peng. The recommendations of the Nomination Committee are subject to the approval of the Board.

23 DIJAYA CORPORATION BERHAD (47908-K) 21 STATEMENT ON CORPORATE GOVERNANCE (iii) Remuneration Committee The Remuneration Committee is comprised entirely of independent non-executive directors and they are Michael Lim Hee Kiang (Chairman) and Loh Chen Peng. The Remuneration Committee assists the Board in its responsibilities of assessing the remuneration packages of the directors. The policy practised on directors remuneration by the Remuneration Committee is that the level of remuneration should be sufficient to attract, motivate and retain directors of the quality required to effectively manage the businesses of the Group. As for non-executive directors, the fees reflect the experience and level of responsibilities undertaken by the non-executive directors concerned. All directors had abstained from discussion and decision on their own remuneration. The details of the remuneration of Directors for the year ended 31 December 2007 are as follows: - Salaries Share allowances Options and other granted Benefits- Category Fees emoluments Bonus under ESOS in-kind Total Executive Directors - 3,368, , ,904 7,983 4,422,922 Non-Executive Directors 228,500 64, ,300 Total 228,500 3,432, , ,904 7,983 4,716,222 The aggregate remuneration of Directors analysed into appropriate band of RM50,000 are as follows: - No. of Directors Range of Remuneration Executive Directors Non-Executive Directors Below RM50,000-5 RM50,001 RM100,000-2 RM200,001 RM250,000 *1 - RM500,001 RM550, RM600,001 RM650, RM750,001 RM800, RM2,800,001 RM2,850, * Resigned during the year (iv) Option Committee The Option Committee, established to administer the Dijaya Employee Share Option Scheme ( ESOS Scheme ), comprises the following members: - a. Tong Kien Onn (Chairman) b. Quek Cham Hong c. Lee Nyit Kong d. Yip Chong Kuan e. Dickson Tan Yong Loong The primary responsibility of the Option Committee is to administer the ESOS Scheme in accordance with the objective and regulation thereof as set out in the ESOS Bye-Laws and in such manner as it shall deem fit and with such powers and duties as are conferred upon it by the Board.

24 22 DIJAYA CORPORATION BERHAD (47908-K) STATEMENT ON CORPORATE GOVERNANCE SHAREHOLDERS Communications with Shareholders and Relationship with Investors The Group recognises and practices transparency and accountability to its shareholders and investors. As such, the Group ensures timely dissemination of information, through appropriate channels of communications, to shareholders and investors to ensure that they are properly informed of major developments of the Group. Such information is also communicated to them through the Annual Report and the various disclosures and announcements made to Bursa Securities from time to time, including the Quarterly and Annual Results. The Company obliges the request of analysts and fund managers for briefings from time to time. The Group s website at also provides an avenue for shareholders and members of the public to access information pertaining to the Group which is being updated regularly. General Meeting The Company s Annual General Meeting is the principal forum for dialogue and interaction with its shareholders at which the shareholders are informed and updated on current developments of the Group. The Board presents an overview of the performance of businesses in the Group and encourages shareholders to participate in the question and answer sessions. The directors and senior management are available to respond to shareholders questions during the meeting. The external auditors and financial advisers are also present to provide their professional and independent clarification on issues and concern raised by the shareholders. The outcome of all resolutions proposed at the general meeting is announced to Bursa Securities at the end of the meeting day. ACCOUNTABILITY AND AUDIT Financial Reporting The Board is responsible for ensuring that all financial statements of the Company and the Group are drawn up in accordance with the applicable approved accounting standards in Malaysia and the provisions of the Companies Act The Board is committed to providing a clear, balanced and comprehensive meaningful assessment of the Group s financial performance and prospects, primarily through the annual financial statements and quarterly announcements of results to shareholders as well as the Chairman s Statement and review of operations in the annual reports. Internal Control The Board has overall responsibility for maintaining a sound system of internal controls which includes financial controls, operational and compliance controls and risk management to safeguard shareholders interest and the Company s assets. The Group s system of internal control is regularly reviewed to ensure its effectiveness. While acknowledging its responsibility for the system of internal control the Board is aware that such a system cannot totally eliminate risks and thus can never be an absolute assurance against the Group failing to achieve its objectives. The Group s Statement on Internal Control for the year ended 31 December 2007 is set out on pages 24 to 26 of the Annual Report. Relationship with Auditors The Board, through the Audit Committee, has always maintained a formal and transparent relationship with the external auditors. The Audit Committee meets up with the external auditors to discuss the annual audited financial statements and their audit findings. The report by the Audit Committee for the financial year ended 31 December 2007 is set out on pages 27 and 28 of this Annual Report. COMPLIANCE WITH THE CODE The Board has complied with the best practices set in accordance with the Code during the year under review. This Statement is made in accordance with a resolution of the Board of Directors dated 12 May 2008.

25 DIJAYA CORPORATION BERHAD (47908-K) 23 STATEMENT ON CORPORATE GOVERNANCE ADDITIONAL COMPLIANCE INFORMATION AS AT 31 DECEMBER 2007 Share Buybacks During the financial year, the Company did not enter into any share buyback transactions. Options, Warrants or Convertible Securities During the year under review, the Company has granted 12,694,100 options pursuant to the ESOS Scheme and a total of 62,500 ESOS options were exercised. The Company has not issued or exercised any warrants or convertible securities during the year. American Depository Receipt ( ADR ) or Global Depository Receipt ( GDR ) Programme The Company did not sponsor any ADR or GDR programme during the year. Imposition of Sanctions and Penalties No sanctions or penalties were imposed on the Company and its subsidiaries, directors or management by the relevant regulatory bodies during the year. Non-Audit Fees The amount of non-audit fees incurred for services rendered to the Company and its subsidiaries for the financial year by the Company s external auditors, Messrs Ernst & Young was RM23, Profit Estimate, Forecast or Projection There was no material variation between the Group s unaudited results announced earlier and the audited results for the year ended 31 December Profit Guarantee The Company did not provide any profit guarantee during the financial year. Material Contracts There were no material contracts entered into by the Company or its subsidiaries that involved directors or major shareholders interest, save and except that Nadi Jelita Sdn Bhd ( NJSB ), an indirect wholly-owned subsidiary of the Company, had on 12 November 2007 entered into a joint venture agreement with Aliran Firasat Sdn Bhd ( AFSB ) to develop AFSB s commercial land in Pekan Baru Sungai Buloh, Daerah Petaling, Selangor. Tan Sri Dato Tan Chee Sing, the Group Chief Executive Office and major shareholder of the Company, is interested by virtue him being the Director and major shareholder of AFSB. Revaluation Policy The Company and the Group did not revalue its land and buildings, save for recognition of impairment losses as required by the relevant accounting standards. Utilisation of Proceeds There was no proceeds raised from any corporate exercise during the financial year.

26 24 DIJAYA CORPORATION BERHAD (47908-K) Statement on Internal Control INTRODUCTION Dijaya Corporation Berhad and its subsidiaries ( the Group ) system of internal control is designed to improve the Group s operations and risk management functions. The Board of Directors ( the Board ) is committed to maintaining a sound system of internal control and risks management practices to safeguard the Group s assets and shareholders interests. The Board is pleased to provide the following Statement on Internal Control which outlines the nature and scope of internal control of the Group during the year pursuant to Paragraph 15.27(b) of the Listing Requirements of Bursa Securities. RESPONSIBILITY The Board affirms its overall responsibility for maintaining a sound system of internal control that covers all aspects of the Group s business including strategic, commercial, operational and financial areas. In recognition of that responsibility, the Board sets policies and seeks regular assurance that the system of internal control is operating effectively. While acknowledging their responsibility for the system of internal control, the directors are aware that a sound system of internal control and risk management can only help to mitigate and manage rather than totally eliminate the risk of failure to achieve business objectives. Accordingly, such a system can only provide reasonable assurance against material misstatements, losses, fraud or breaches of law or regulations. However, the extent of responsibility for internal control does not extend to include that of the Group s associated companies for the purpose of this review. PRINCIPAL FEATURES AND KEY PROCESSES OF THE GROUP S SYSTEM OF INTERNAL CONTROL The principal features of the Group s system of internal control can be summarised as follows:- Authorisation Procedures The Group has a clearly-defined authorisation procedure and a clear line of accountability, with strict authorisation, approval and control procedures which provide a sound framework of authority and accountability within the organisation and which facilitate proper corporate decision-making at the appropriate level in the organisation s hierarchy. Responsibility levels are communicated throughout the Group which set out, amongst others, authorisation levels, segregation of duties and other control procedures. Authority Levels The Group has designated authority levels for major project tenders, capital expenditures, assets and other significant transactions. Such limits are subject to periodic reviews as to their implementation and continuing suitability. Staffing Policies Guiding policies and procedures on hiring and retention of staff have been established at Group level with individual business units having the flexibility to adapt these policies for their specific needs. High recruitment standards which identify talented individuals who possess qualities that fit the Group s culture of excellence ensure the integrity and competence of staff. Successful recruits are guided on where and how they can contribute productively. Employees knowledge, skills and abilities are being continually enhanced to enable them to operate and monitor the systems of internal control effectively.

27 DIJAYA CORPORATION BERHAD (47908-K) 25 STATEMENT ON INTERNAL CONTROL Financial Performance Quarterly, interim and full year results and analyses of the Group s state of affairs are disclosed to the shareholders after review and approval by the Board. A computerised financial reporting system captures all financial transactions that are then collated into regular management financial statements. The Group s management team communicates regularly to monitor the financial performance of business units. Internal Compliance The Group monitors compliance with its internal controls through management reviews and internal audit reports that are reviewed by key personnel. Regular updates of internal policies and procedures are undertaken to reflect changing risks or resolve operating deficiencies. Internal audit visits are systematically arranged over specific periods to monitor and scrutinize compliance with procedures and assess the integrity of financial information provided. The key processes that the Board has established to review the adequacy and integrity of the system of internal control are as follows:- Internal Audit Function The Group s internal audit function undertakes reviews of internal control in all key activities of the Group. The internal auditors will monitor and report on the financial and operational controls implemented by the management and report to the Audit Committee, which in turn will review the effectiveness of the system of internal control in operation and report their conclusions to the Board. The internal auditors advise management on areas for improvement and subsequently review the extent to which its recommendations have been implemented. During the year under review, the internal auditors conducted various audit assignments covering operational and compliance controls. The system of internal control will continue to be reviewed, enhanced or updated in line with changes in the operating environment. The Board will seek regular assurance on the continuity and effectiveness of the internal control system through independent appraisals by the internal auditors. The Board is of the opinion that the current system of internal control in place throughout the Group is sufficient to safeguard the Group s interests. Senior Management Meetings The Group conducts regular meetings of senior management which comprises the Group Chief Executive Officer, the Managing Director, Executive Director and all divisional heads. The purpose of these meetings is to share information, monitor the progress of various business units, and to deliberate and decide upon operational matters. The meetings help to remove barriers of bureaucracy and assist in ensuring more direct and effective implementation of all major and important decisions. Reality Assessments The Managing Director and Executive Director carry out reality assessments by visiting the operating units and communicating with various levels of staff to gauge the effectiveness of strategies implemented.

28 26 DIJAYA CORPORATION BERHAD (47908-K) STATEMENT ON INTERNAL CONTROL RISK MANAGEMENT The process of identifying and managing the key risks within the Group are an integral part of the internal control environment. The processes within the Group are continuously reviewed and improved upon. In dealing with its stewardship responsibilities, the Board recognises that effective risk management is an integral part of good business management practice. The Board acknowledges that all areas of the Group s business activities involve some degree of risk and is committed to ensuring that the Group has an effective risk management framework which allows the management to manage the risks within defined parameters and standards. Identifying, evaluating and managing the significant risks faced by the Group is an ongoing process which is undertaken at each level of operation. This process is monitored by the Board to ensure the adequacy and integrity of the system of internal control. Emphasis is placed on reviewing and updating the process for identifying and evaluating the significant risks affecting the business, policies and procedures. Management is responsible for the identification and evaluation of significant risks applicable to their areas of business together with the design and operation of suitable internal controls. These risks are assessed on a continual basis and may be associated with a variety of internal and external sources including control breakdowns, disruption in information systems, competition, natural catastrophe and regulatory requirements. Management reports regularly on their review and management of risks to the Audit Committee, whose main role is to assess, on behalf of the Board, the key risks inherent in the business and the system of controls necessary to manage such risks and to present their findings to the Board. Internal audit independently reviews the risk identification procedures and control processes implemented by management and reports to the Audit Committee on a quarterly basis. The Managing Director also reports to the Board on significant changes in the business and the external environment which may result in significant risks. Where areas for improvement in the system are identified, the Board considers the recommendations made by the Audit Committee and the internal auditors. The Board will pursue its ongoing process of identifying, assessing and managing key business, operational and financial risks faced by the business units as well as regularly reviewing planned strategies to determine whether risks are mitigated and well-managed. CONCLUSION The Board is satisfied that, during the year under review, the system of internal control being instituted throughout the Group is sound and effective. Notwithstanding this, reviews of all the control procedures will be continuously carried out to ensure the ongoing effectiveness and adequacy of the systems of internal control, so as to safeguard the Group s assets and shareholders investments.

29 DIJAYA CORPORATION BERHAD (47908-K) 27 Report of Audit Committee for the financial year ended 31 December 2007 A. COMPOSITION The members of the Audit Committee during the year comprised the following directors: - Name Status of directorship Independent Attendance of meeting Roslan Bin Hj Yahya (Chairman) Non-executive director Yes 4/4 Michael Lim Hee Kiang Non-executive director Yes 3/4 Loh Chen Peng Tong Kien Onn (resigned w.e.f. 1 October 2007) Non-executive director (A Certified Public Accountant of the Malaysian Institute of Certified Public Accountants) Managing director (A member of the Chartered Institute of Management Accountants, United Kingdom) Yes 3/4 No 3/3 B. TERMS OF REFERENCE Function of the Audit Committee The functions of the Committee shall be amongst others as follows: - 1. To review the following and report the same to the Board of Directors: - a) with the external auditors, the audit plan; b) with the external auditors, the evaluation of the system of internal controls; c) with the external auditors, the audit reports; d) the assistance given by the Company s employees to the external auditors; e) the adequacy of the scope, functions and resources for the internal audit department and that it has the necessary authority to carry out its work; f) the internal audit programme, processes, the results of the internal audit programme, processes or investigation undertaken and whether or not appropriate action is taken on the recommendations of the internal audit function; g) the quarterly results and year end financial statements, prior to the approval by the Board of Directors, focusing on: - (i) changes in or implementation of major accounting policy changes; (ii) significant and unusual events; and (iii) compliance with accounting standards and other legal requirements; h) any related party transactions and conflict of interest situation that may arise within the Company or Group; i) any letter of resignation from the external auditors; and j) whether there is reason (supported by grounds) to believe that the external auditors are not suitable for re-appointment; 2. To recommend the nomination of a person or persons as external auditors. Authority of the Audit Committee 1. The Committee is authorised to investigate any activity within its terms of reference and to seek any information it requires from any employee and all employees are directed to co-operate with any request made by the Committee. 2. The Committee is authorised to obtain outside legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary. 3. The Committee shall have unrestricted access to both the internal and external auditors and is able to convene meetings with the external auditors, excluding the attendance of the executive members of the Committee, whenever deemed necessary.

30 28 DIJAYA CORPORATION BERHAD (47908-K) REPORT OF AUDIT COMMITTEE for the financial year ended 31 December 2007 C. MEETINGS The Committee had four (4) meetings during the year. The Managing Director and members of Senior Management attended these meetings upon invitation by the Chairman of the Committee. The Group s internal auditors attended all the Audit Committee meetings, whereas the external auditors attended one (1) of the Audit Committee meeting during the year. D. SUMMARY OF ACTIVITIES DURING THE YEAR During the year, the Audit Committee carried out its duties in accordance with its terms of reference. In performing its functions, the Audit Committee reviewed the overall scope of internal audits. It met with the Group s internal auditors to review their audit reports and to discuss their findings and the management s responses thereto. It also reviewed the internal auditors evaluation of the system of internal control of the Company and its subsidiary companies. In addition, the Audit Committee discussed with the external auditors the audit plan which states the nature and scope of audits and the audit findings arising from their review. The Audit Committee also reviewed the unaudited quarterly financial statements of the Company and the audited consolidated annual financial statements together with the relevant financial announcements to Bursa Securities prior to the approval by the Board. Other main issues discussed and noted by the Audit Committee were as follows: - (a) related party transactions entered into by the Group; (b) updated disclosure requirements of Bursa Securities; and (c) verified the allocation of Employees Share Option Scheme ( ESOS ) options which was in compliance with the criteria set pursuant to the ESOS bye-laws. E. INTERNAL AUDIT FUNCTION The Audit Committee is supported by an independent and adequately resourced Internal Audit Department in the discharge of its duties and responsibilities. During the year, the internal audit activities have been carried out according to the internal audit plan which had been approved by the Audit Committee. The scope of the internal audit covered the audits of all units and operations, including subsidiaries to provide the Audit Committee with assurance that the system of internal control of the Group achieved the following: - a) The business was planned and conducted in an orderly, prudent and cost effective manner; b) Transactions and commitments were entered into in accordance with Management s authority; c) The Management was able to safeguard the assets and control the liabilities of the Group, i.e., there were measures to minimise and detect any loss from irregularities, frauds and errors; and d) The accounting and other records of the business provided complete, accurate and timely information. Nine (9) audit reports were issued during the year 2007 incorporating findings and recommendations with regard to system and control, weaknesses noted in the course of audit, the management s responses and the remedial actions on the implementation of all findings and recommendations in its review process. In the course of auditing, the Internal Auditors have identified some internal control weaknesses during the year, which have been or are being addressed. None of the weaknesses have resulted in any material losses, contingencies or uncertainties that would require disclosure in the Group s Annual Report. F. GRANTING OF OPTIONS PURSUANT TO EMPLOYEES SHARE OPTION SCHEME During the year under review, the Company has granted 12,694,100 options pursuant to the Employees Share Option Scheme.

31 DIJAYA CORPORATION BERHAD (47908-K) 29 Statement on Corporate Social Responsibility At Dijaya Corporation Berhad ( Dijaya or the Company ), Corporate Social Responsibility ( CSR ) has always been part of the Group s business practice. It is important for us to achieve business success in ways that honour our ethical principles and demonstrate respect for people and the planet. The Company maintains the best values and practices in its relationships with its workforce, shareholders, regulators and business associates. CSR IN THE ENVIRONMENT Dijaya Group strive to ensure that its operations produce as little environmental impact as is consistent with our business needs. We are conscious that the planet belongs not to us, but to the future generations, hence we make every effort to ensure that our operations and services are in accordance with appropriate industry standards and best practices, thus minimising harm to the environment. In the Group s development and building operations, conscious efforts are made to preserve the beauty of the natural surroundings. In meeting this objective, the Group s resort operations had put in place a waste heat recovery system to produce hot water with heat from air-conditioning compressors. Recently, it had also installed a energy saving equipment to reduce electricity consumption. CSR IN THE WORKPLACE Dijaya Group has a total of about 600 employees with equal opportunity provided to all regardless of age, gender, race, religion, nationality etc. Besides providing a safe workplace for its employees, the Dijaya Group also recognises the importance for its workforce to feel proud and inspired to work for the Group, and thus we strive to improve their quality of life. Our workforce is encouraged to reach their full potential through training, career development and promotion from within wherever possible. Opportunity to have a direct ownership of the Company is provided through the Employees Share Option Scheme participation. To show appreciation and to encourage interaction amongst employees, lunches and annual dinner are organised during the year. Dijaya Group encourages the formation of the Staff Sports Club and provided financial assistance in the running of the Staff Sports Club. CSR IN THE MARKETPLACE The Dijaya Group is committed to pursue and practice CSR by ensuring that our operations and business practices are managed responsibly and efficiently with the highest standards of transparency, accountability and integrity in an increasingly complex environment. We seek to protect our customers rights and service their needs at all times. The feedback and suggestions from customers are taken seriously and are used to improve the quality of our products and services. We maintain a clear, timely and open communication with shareholders, analysts and fund managers to enable them to have clear understanding of Dijaya Group s strategies, performances and growth prospects. Investors and all other interested parties are able to obtain updated information on the Dijaya Group through its website at CSR IN THE COMMUNITY We believe that it is our duty to contribute and engage with the communities in which we belong and the society at large. Through our contribution to local charities and voluntary organisations, we hope to develop relationships with and enhance the quality of life of these communities. A cause which always receives the support of Dijaya Group is education through its contributions to Universiti Tunku Abdul Rahman (UTAR) Education Fund and the NST-NIE Sponsorship. Financial aids were given to the Johor flood victims to help them to restart their lives after the flood disaster. Joint charities activities were organised to raise fund for selected orphanages and homes for the disables. In November 2007, the Dijaya Group once again sponsored the 14th Ronald McDonald Children s Charities Funds (RMCC) Tropicana Charity Golf Tournament, an annual charity event which was started since 1997 with RMCC.