HSBC Amanah Takaful (Malaysia) Sdn. Bhd. (Company No M) (Incorporated in Malaysia)

Transcription

1 HSBC Amanah Takaful (Malaysia) Sdn. Bhd. (Company No M) (Incorporated in Malaysia) Unaudited Interim Financial statements for the six months ended 30 June 2012

2 2 UNAUDITED CONDENSED STATEMENTS OF FINANCIAL POSITION AT 30 JUNE 2012 < As at > < As at > < As at > Bank Negara Malaysia Reporting Bank Negara Malaysia Reporting Bank Negara Malaysia Reporting Shareholders' Family General Total Shareholders' Family General Total Shareholders' Family General Total fund Fund Fund fund Fund Fund fund Fund Fund Note ASSETS Property and equipment 1,203, ,203,737 1,385, ,385, , ,463 Intangible assets 10,417, ,417,468 10,837, ,837,861 9,266, ,266,768 Investment assets 13 70,676, ,455,326 32,018, ,150,626 40,129, ,533,203 48,328, ,991,503 20,711, ,528,521 37,161, ,401,321 Retakaful assets 14-15,776,921 14,398,079 30,175,000-55,116,292 15,025,845 70,142,137-29,166,438 4,509,489 33,675,927 Takaful receivables - 8,079,078 12,658,883 20,737,961-2,547,287 10,347,270 12,894,557-2,379,860 4,527,761 6,907,621 Other receivables 62,829,639 6,541, ,665 69,701,282 62,181,437 3,078, ,926 65,814,685 50,640,263 2,432, ,241 53,574,323 Deferred tax assets ,499,717-5,945 11,505,662 Cash and cash equivalents 9,925,801 88,151,491 8,580, ,657,536 1,142,664 57,004,827 1,978,868 60,126,359 4,570,419 44,322,348 7,474,397 56,367,164 Investment-linked funds assets - 242,511, ,511, ,243, ,243, ,131, ,131,712 Less: Interfund balances (38,141,954) - - (38,141,954) (38,806,309) - - (38,806,309) (28,579,339) - - (28,579,339) TOTAL ASSETS 116,911, ,516,233 67,985, ,413,095 76,870, ,523,729 76,235, ,630,497 68,946, ,961,698 54,180, ,088,622 EQUITY AND LIABILITIES Share capital 100,000, ,000, ,000, ,000, ,000, ,000,000 Reserves (17,392,311) - - (17,392,311) (40,739,483) - - (40,739,483) (49,510,440) - - (49,510,440) TOTAL SHAREHOLDERS' EQUITY 82,607, ,607,689 59,260, ,260,517 50,489, ,489,560 LIABILITIES Takaful contract liabilities 15-4,893,738 41,769,556 46,663,294-4,597,395 39,871,341 44,468,736-2,574,798 29,656,201 32,230,999 Takaful payables 3,806,713 16,836,861 2,509,291 23,152,865 2,807,662 12,101,789 5,905,733 20,815,184 2,593,030 3,797,359 2,277,665 8,668,054 Other payables 37,202,137 42,842,279 10,307,321 90,351,737 31,283,165 29,734,454 19,148,149 80,165,768 24,443,360 16,830,832 11,049,804 52,323,996 Provision for tax 9,457, ,288-9,898, Deferred tax liabilities 1,979, ,577 13,246 2,403,600 2,325, ,096 33,207 2,567,137-64,240-64,240 Amount due to shareholders 20,000, ,000,000 20,000, ,000,000 20,000,000-20,000,000 Investment-linked funds liabilities - 1,303,186-1,303,186-3,501,615-3,501,615-6,215,819-6,215,819 Less: Interfund balances (38,141,954) - - (38,141,954) (38,806,309) - - (38,806,309) (28,579,339) - - (28,579,339) TOTAL LIABILITIES 34,303,892 66,727,929 54,599, ,631,235 17,610,352 50,143,349 64,958, ,712,131 18,457,051 29,483,048 42,983,670 90,923,769 TAKAFUL FUNDS ,788,304 13,385, ,174, ,380,380 11,277, ,657, ,433,650 11,196, ,630,293 TOTAL TAKAFUL FUNDS, SHAREHOLDERS' EQUITY AND LIABILITIES 116,911, ,516,233 67,985, ,413,095 76,870, ,523,729 76,235, ,630,497 68,946, ,916,698 54,180, ,043,622 The notes on pages 6 to 17 are an integral part of these condensed interim financial statements.

3 3 UNAUDITED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2012 < Current Period ended > <---Preceding corresponding period ended > Bank Negara Malaysia Reporting Bank Negara Malaysia Reporting Shareholders' Family General Consolidated Shareholders' Family General Consolidated fund Fund Fund Total fund Fund Fund Total Note Operating Revenue Takaful operator income 18 81,531, ,241, Gross earned contributions - 138,801,478 41,752, ,553, ,769,352 23,094, ,863,759 Contributions ceded to retakaful - (9,417,586) (3,837,418) (13,255,004) - (4,458,712) (2,560,445) (7,019,157) Net earned contributions 81,531, ,383,892 37,914, ,298,860 53,241, ,310,640 20,533, ,844,602 Net benefits and claims 20 - (8,184,477) (9,973,054) (18,157,531) - (6,742,661) (2,800,411) (9,543,071) Wakalah fee - (26,757,256) (19,167,822) - - (22,307,785) (9,335,071) - Realised gains and losses - 648, Fair value gains and losses - (312,509) Fee and commission income - - 1,001,453 1,001,453-20, , ,577 Investment income 19 1,120,915 5,028, ,856 6,787, ,167 2,041, ,304 3,205,651 Other operating (expense)/revenue (1,652) (846,649) (1,916,671) (2,764,972) - (812,919) (145,060) (957,979) Management expenses (29,625,038) - - (29,625,038) (27,916,356) - - (27,916,356) Commission paid (19,096,337) - - (19,096,337) (17,190,302) - - (17,190,302) Actuarial reserves - 3,195,701 (727,752) 2,467,949 - (35,259,463) 852,800 (34,406,662) Expense reserve (3,581,153) - - (3,581,153) (704,632) - - (704,632) Write off of property and equipment Impairment of receivables - 428,887 1,503,480 1,932, (617,423) (617,423) Other income/(expenses) 2,167,936-2,167,936 1,294, ,294,604 Surplus attributable to takaful operator - (23,897,554) (5,718,494) - - (7,869,044) (7,935,174) - Net surplus attributable to the participants - (10,936,349) (3,553,964) (75,914,743) - (2,347,339) (1,924,716) (31,510,626) Profit/Surplus before zakat and taxation 32,516,175 67,751,093-32,516,175 9,246,381 33,033,398-9,246,381 Zakat (32,835) - - (32,835) Taxation 21 (9,125,624) (371,107) - (9,125,624) (746,918) - - (746,918) Profit/Surplus for the period 23,390,551 67,379,986-23,390,551 8,466,628 33,033,398-8,466,628 Other comprehensive income Available-for-sale assets fair value reserve (57,839) 2,843,550 (79,836) 2,705,875 82,439 1,855, ,608 2,094,124 Tax effect thereon 14,460 (227,484) 19,959 (193,065) 80,121 (104,723) (39,152) (63,754) Other comprehensive income attributable to takaful operator/ change in participants liabilities - (2,616,066) 59,877 (2,556,189) - (1,750,354) (117,456) (1,867,810) Total other comprehensive income for the period (43,379) - - (43,379) 162, ,560 Total comprehensive income/(loss) for the period 23,347,172 67,379,986-23,347,172 8,629,188 33,033,398-8,629,187 The notes on pages 6 to 17 are an integral part of these condensed interim financial statements.

4 4 UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2012 < Non-distributable > Availablefor-sale assets ("AFS") Share fair value Accumulated capital reserves losses Total Note At 1 January ,000,000 32,728 (49,543,168) 50,489,560 Fair value of available-for-sale financial assets - 162, ,560 Total other comprehensive income for the year - 162, ,560 Profit for the year - - 8,608,397 8,608,397 Total comprehensive income for the year - 162,560 8,608,397 8,770,957 At 31 December ,000, ,288 (40,934,771) 59,260,517 At 1 January ,000, ,288 (40,934,771) 59,260,517 Fair value of available-for-sale financial assets (43,379) (43,379) Total other comprehensive income for the period (43,379) (43,379) Profit for the period ,390,551 23,390,551 Total comprehensive income for the period (43,379) 23,390,551 23,347,172 At 30 June ,000, ,909 (17,544,220) 82,607,689 The notes on pages 6 to 17 are an integral part of these condensed interim financial statements.

5 5 UNAUDITED CONDENSED STATEMENT OF CASHFLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2012 Note Current Period Year Ended Ended Operating Activities Cash generated from operating activities ,532, ,748,023 Net cash flows from operating activities 138,532, ,748,023 Investing Activities Purchase of property and equipment (4,189) (888,742) Proceeds from disposal of property and equipment - - Purchase of intangible assets (878,744) (4,581,676) Purchase of investments (263,929,574) (428,308,327) Proceeds from sale and redemption of investments 153,195, ,668,944 Profit from government guaranteed bonds 2,317,691 3,895,160 Profit from Malaysian government securities 1,543,430 2,019,448 Profit from corporate debt securities 5,786,059 7,349,884 Profit from deposits placed with financial institutions 1,274,159 1,828,902 Dividend received from equity securities 1,702,516 1,473,655 Net cash used in investing activities (98,993,073) (224,542,752) Increase/(decrease) in cash and cash equivalents 39,539,331 19,205,271 Cash and cash equivalents as at 1 January 93,675,228 74,469,957 Cash and cash equivalents as at 30 June/31 December 133,214,559 93,675,228 Cash and cash equivalents included in the statement of cash flows comprise of the following statement of financial position amounts: Deposits with financial institutions 99,900,793 84,770,534 Cash and bank balances 33,313,766 8,904, ,214,559 93,675,228 The notes on pages 6 to 17 are an integral part of these condensed interim financial statements.

6 6 NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS AT 30 JUNE Basis Of Preparation The Company has adopted the Malaysian Financial Reporting Standard (MFRS) framework and MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards for the first time in these condensed interim financial statements. The unaudited financial statements have been prepared using historical cost basis except for certain financial assets and financial liabilities that are stated at fair value. The unaudited interim financial statements have been prepared in accordance with MFRS 134: Interim Financial Reporting by the Malaysian Accounting Standards ('MASB"), Takaful Act,1984,Takaful Guidelines/Circulars issued by Bank Negara Malaysia ("BNM") as well as Shariah rulings and precepts. The statements of financial position and the statements of comprehensive income of the Operator, Family Fund and General Fund are supplementary financial information presented in accordance with the requirements of BNM. In accordance with Takaful Act,1984 the Company is required to segregate assets, liabilities, income and expenses of the Takaful funds from its own. The statements of financial position and comprehensive income of the Operator include only the assets, liabilities, income and expenses of the Company excluding the Takaful funds managed by it. The statements of financial position and comprehensive income of the Family Fund include only the assets, liabilities, income and expenses of the family solidarity fund that is set up, managed and controlled by the Company.The statements of financial position and comprehensive income of the General Fund include only the assets, liabilities, income and expenses of the Takaful funds other than the family solidarity fund that is set up, managed and controlled by the Company. The unaudited interim financial statements should be read in conjunction with the audited annual financial statements of the Company for the financial year ended 31 December The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Company since the year ended 31 December Auditors' Report The auditors' report on the audited financial statements of the preceding year ended 31 December 2011 did not contain any qualification. 3. Seasonality of operations The Group's operations are not materially affected by seasonal or cyclical factors for the period under review.

7 7 NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS AT 30 JUNE Unusual items Save as disclosed in note 11 there were no unusual items affecting assets, liabilities, equity, net income or cash flows in the current period ended 30 June Estimates There were no material changes in the basis used for accounting estimates for the current quarter under review other than a change in reserving methodology made in accordance with BNM guidelines which take effect from financial year beginning on and after 1 July The total impact of the change in reserving methodology is approximately 19,672,000 in profits to the Shareholders' Fund. 6. Debt and Equity Securities There were no issuance, cancellation, repurchase, resale and repayment of debt and equity securities for the current period under review. 7. Dividends No dividends was paid during the year and the Directors do not recommend any dividend to be paid for the period under review. 8. Material Events Subsequent to the End of the Period There were no material events subsequent to the end of the period under review that has not been reported in the interim financial statements for the current financial period. 9. Financial Risk Management The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statement as at and for the year ended 31 December Contingent Liabilities There were no contingent liabilities as at the date of this report. 11. Material Changes in the Six Months Results compared to the Results of the Preceding Six Months. For the six months under review, the profit before zakat and taxation registered million which was higher than the preceding six months of 9.25 million by million. The preceding six months results include one-off of approximately million pertaining to the change in reserving methodology as disclosed in note 5. Excluding the one-off adjustments, the current profit before zakat and taxation is higher by 3.60 million as compared to the preceding quarter. 12. Material Litigation There was no material litigation pending as at the date of this announcement.

8 8 13. Investment assets Shareholders' Family General Investmentfund takaful fund takaful fund linked funds Total At 30 June 2012 Available-for-sale financial assets Malaysian government securities - 80,074,900 10,180,000-90,254,900 Government guaranteed bonds 10,073, ,488,089 1,703, ,264,999 Corporate debt securities 60,113, ,044,102 20,134, ,292,502 Quoted equity securities 489, ,990 Fair value through profit or loss Corporate debt securities ,835,696 71,835,696 Structured investments ,958,041 47,958,041 Quoted equity securities - 11,848,235-94,413, ,261,814 70,676, ,455,326 32,018, ,207, ,357,942 At 31 December 2011 Available-for-sale financial assets Malaysian government securities - 49,323,500 15,256,000-64,579,500 Government guaranteed bonds 10,039,000 96,009,610 1,702, ,751,500 Corporate debt securities 29,680, ,895,946 31,370, ,946,946 Quoted equity securities 409, ,410 Fair value through profit or loss Corporate debt securities 52,855,872 52,855,872 Structured investments ,759,796 48,759,796 Quoted equity securities - 10,304,147-73,715,434 84,019,581 40,129, ,533,203 48,328, ,331, ,322,605

9 9 13. Investment assets (continued) (a) Carrying values of investment assets The carrying value of investment assets are stated at fair value. The investment assets are categorised as either available for sales (AFS) or fair value through profit or loss (FVTPL). AFS FVTPL Total At 1 January ,401, ,563, ,965,213 Purchases 180,002, ,305, ,308,328 Maturities (20,390,500) (67,724,142) (88,114,642) Disposals - (104,554,302) (104,554,302) Fair value gains recorded in statement of comprehensive income - (1,942,445) (1,942,445) AFS reserves 2,094,124-2,094,124 Amortisation adjustment 579,977 (13,648) 566,329 At 31 December ,687, ,635, ,322,605 Purchases 96,792, ,137, ,929,574 Maturities (27,512,500) (13,867,725) (41,380,225) Disposals - (111,815,354) (111,815,354) Fair value loss recorded in - statement of comprehensive income (973,466) (973,466) AFS reserves 2,625,105-2,625,105 Amortisation adjustment (1,289,828) (60,469) (1,350,297) At 30 June ,302, ,055, ,357,942 (b) Fair values of investment assets The basis of fair value of investment assets is determined by reference to market bid prices in an active market at reporting date.

10 Investment assets (continued) (c) The following investment assets mature after 12 months: Shareholders' General Family Investmentfund takaful takaful linked fund fund funds At 30 June 2012 Available-for-sale 70,186,900 15,299, ,254,502 - Fair value to profit or loss ,701,011 70,186,900 15,299, ,254, ,701,011 At 31 December 2011 Available-for-sale 39,719,900 38,326, ,033,056 - Fair value to profit or loss ,441,857 39,719,900 38,326, ,033,056 85,441, Retakaful assets Retakaful of takaful contracts Note 30 June 31 December General takaful fund 15(a) 14,398,079 15,025,845 Family takaful fund 15(a) & 16(b) 15,776,921 55,116,292 Investment-linked fund - 252,594 30,175,000 70,394, Takaful contract liabilities Note Gross Retakaful Net At 30 June 2012 General takaful fund 15(a) 41,769,556 (14,398,079) 27,371,477 Family takaful fund 15(b) 4,893,738 (3,201,747) 1,691,991 Investment-linked fund 15(c) ,663,294 (17,599,826) 29,063,468 At 31 December 2011 General takaful fund 15(a) 39,871,341 (15,025,845) 24,845,496 Family takaful fund 15(b) 4,597,395 (3,602,288) 995,107 Investment-linked fund 15(c) 356,168 (252,594) 103,574 44,824,904 (18,880,727) 25,944,177 (a) General takaful fund At 30 June 2012 Provision for claims reported by participants 11,948,495 (8,974,507) 2,973,988 Provision for IBNR 14,411,044 (1,967,956) 12,443,088 Provision for outstanding claims (i) 26,359,539 (10,942,463) 15,417,076 Provision for unearned contributions (ii) 15,410,017 (3,455,616) 11,954,401 41,769,556 (14,398,079) 27,371,477

11 Takaful contract liabilities (continued) (a) General takaful fund Gross Retakaful Net At 31 December 2011 Provision for claims reported by participants 11,587,547 (8,705,768) 2,881,779 Provision for IBNR 8,652,079 (3,402,551) 5,249,528 Provision for outstanding claims (i) 20,239,626 (12,108,319) 8,131,307 Provision for unearned contributions (ii) 19,631,715 (2,917,526) 16,714,189 39,871,341 (15,025,845) 24,845,496 (i) Provision for outstanding claims At 1 January ,239,626 (12,108,319) 8,131,307 Claims incurred in the current accident period 8,968,659 1,004,395 9,973,054 Claims paid during the period (2,848,746) 161,461 (2,687,285) At 30 June ,359,539 (10,942,463) 15,417,076 At 1 January ,326,732 (2,658,863) 11,667,869 Claims incurred in the current accident year 18,335,080 (16,183,082) 2,151,998 Claims paid during the year (12,422,186) 6,733,626 (5,688,560) At 31 December ,239,626 (12,108,319) 8,131,307 (ii) Provision for unearned contributions At 1 January ,631,715 (2,917,526) 16,714,189 Contributions written in the period 35,163,997 (3,837,418) 31,326,579 Contributions earned during in the period (39,385,695) 3,299,328 (36,086,367) At 30 June ,410,017 (3,455,616) 11,954,401 At 1 January ,329,469 (1,850,626) 13,478,843 Contributions written in the period 50,488,588 (5,339,601) 45,148,987 Contributions earned during in the period (46,186,342) 4,272,701 (41,913,641) At 31 December ,631,715 (2,917,526) 16,714,189 (b) Family takaful fund (i) Provision for outstanding claims At 1 January ,597,395 (3,602,288) 995,107 Claims incurred in the current accident period 13,524,269 (5,339,792) 8,184,477 Claims paid during the period (13,227,926) 5,740,333 (7,487,593) At 30 June ,893,738 (3,201,747) 1,691,991 At 1 January ,574,798 (1,046,226) 1,528,572 Claims incurred in the current accident year 20,796,148 (5,674,136) 15,122,012 Claims paid during the year (18,773,551) 3,118,074 (15,655,477) At 31 December ,597,395 (3,602,288) 995,107

12 Takaful contract liabilities (continued) (c) Investment-linked fund (i) Provision for outstanding claims Gross Retakaful Net At 1 January ,168 (252,594) 103,574 Claims incurred in the current accident period Claims paid during the period (356,168) 252,594 (103,574) At 30 June At 1 January ,179 (45,000) 248,179 Claims incurred in the current accident year 25,445,524 (872,249) 24,573,275 Claims paid during the year (25,382,535) 664,655 (24,717,880) At 31 December ,168 (252,594) 103, Participants' fund (a) General takaful fund Actuarial reserves 3,966,890 4,169,620 AFS reserves 39,745 99,622 Revenue account accumulated surplus 9,379,232 7,008,227 13,385,867 11,277,469 Actuarial reserves At 1 January 4,169,620 5,505,496 Transfer from surplus - - Paid to participants (929,852) (1,351,452) Increase in reserves 727,122 15,576 At 30 June/31 December 3,966,890 4,169,620 AFS reserves At 1 January 99,622 (17,835) (Decrease)/increase in reserves (59,877) 117,457 At 30 June/31 December 39,745 99,622 Revenue account accumulated surplus At 1 January 7,008,227 5,708,982 Surplus for the year (page 12) 3,553,964 4,414,540 Profit paid to participants (1,182,959) (2,787,659) Transferred to actuarial reserve - - Transferred to claim stabilisation reserve - - Transferred to donation payable account - (327,636) At 30 June/31 December 9,379,232 7,008,227

13 Participants' fund (continued) (b) Family takaful fund Gross Retakaful Net At 30 June 2012 Actuarial reserves 320,535,251 (12,575,174) 307,960,077 Unallocated surplus 84,485,659-84,485,659 AFS reserve 4,559,141-4,559,141 Net asset value attributable to unitholders 241,208, ,208, ,788,304 (12,575,174) 638,213,130 At 1 January ,380,380 (51,514,004) 524,866,376 Contributions received 129,383, ,383,892 Liabilities paid for death, maturities, surrenders, - benefits and claims (7,487,593) - (7,487,593) Benefits and claims experience variation (696,884) - (696,884) Fees deducted (27,603,905) - (27,603,905) Tax expense (371,107) - (371,107) Investment income 5,364,898-5,364,898 Retakaful reserve credit (38,938,830) 38,938,830 - Transfer to profit retained in fund 1,150,536-1,150,536 Profit paid to participants (121,245) - (121,245) Transfer to donation payable account Overprovision of surplus in prior year 114, ,692 Net asset value attributable to unitholders 34,466,070-34,466,070 Surplus attributable to shareholder (23,897,554) - (23,897,554) Impariment allowance for debts 428, ,887 AFS reserve 2,616,067-2,616,067 At 30 June ,788,304 (12,575,174) 638,213,130 At 31 December 2011 Actuarial reserves 287,306,318 (51,514,004) 235,792,314 Unallocated surplus 80,388,805-80,388,805 AFS reserve 1,943,074-1,943,074 Net asset value attributable to unitholders 206,742, ,742, ,380,380 (51,514,004) 524,866,376 At 1 January ,433,650 (28,120,212) 307,313,438 Contributions received 207,130, ,130,142 Liabilities paid for death, maturities, surrenders, benefits and claims (15,655,477) - (15,655,477) Benefits and claims experience variation 533, ,465 Fees deducted (45,720,550) - (45,720,550) Deferred tax expense (39,133) (39,133) Investment income 6,146,142-6,146,142 Retakaful reserve credit 23,393,792 (23,393,792) - Overprovision of surplus in prior year 50,924-50,924 Profit paid to participants (731,309) - (731,309) Transfer to donation payable account (555,091) - (555,091) Transfer to with-holding tax (490,076) - (490,076) Net asset value attributable to unitholders 82,871,290-82,871,290 Surplus attributable to shareholder (17,069,936) - (17,069,936) Impariment allowance for debts (667,807) (667,807) AFS reserve 1,750,354-1,750,354 At 31 December ,380,380 (51,514,004) 524,866,376

14 Capital and other commitments Shareholders' fund 30 June 31 December Capital expenditure Plant and equipment Approved but not contracted for 6,215,600 6,215, Takaful operator income The takaful operator income consists of the following : 6 months 6 months ended ended 30 June June 2011 Transfer from statement of comprehensive income: Family takaful* 23,897,554 7,869,044 General takaful* 5,718,494 7,935,174 Wakalah fee income 51,915,456 37,437,682 Total takaful operator income 81,531,504 53,241,900 *Subject to final Board approval 19. Investment Income Shareholders' General Family Investment- 6 months ended fund takaful fund takaful fund linked fund 30 June 2012 Profit from government guaranteed bonds 191,973 30,855 2,094,863 - Profit from Malaysian government securities - 241,873 1,301,557 - Profit from of corporate debt securities 899, ,066 3,255,131 1,201,979 Profit from deposits with financial institutions 65,640 28, , ,352 Dividend from equity securities ,824 1,563,692 Investment income/(expense) sharing to Shareholder's fund - (Amortisation) from government guaranteed bonds (4,579) (1,943) 121,141 - (Amortisation) from Malaysian government bonds - (43,639) (79,067) - (Amortisation)/Accretion of corporate debt securities (32,002) (46,459) 951,352 71,806 Investment distribution sharing to participants - - (3,501,222) - Investment Expenses - - (27,030) (1,249,692) 1,120, ,856 5,028,613 1,995,137

15 Investment Income (continued) Shareholders' General Family Investment- 6 months ended fund takaful fund takaful fund linked fund 30 June 2011 Profit from government guaranteed bonds 190,918 30,686 1,459,267 - Profit from Malaysian government securities 203, ,454 - Profit from of corporate debt securities 194, ,405 1,724, ,929 Profit from deposits with financial institutions 144,077 70, , ,027 Dividend from equity securities ,500 Investment income/(expense) sharing to Shareholder's fund (Amortisation) from government guaranteed bonds (4,399) (1,874) 46,177 - (Amortisation) from Malaysian government bonds (43,053) (54,446) - (Amortisation)/Accretion of corporate debt securities (4,415) (131,555) 235,362 32,969 Investment distribution sharing to participants - - (2,719,129) - Investment Expenses (472,326) 521, ,304 2,041, , Net benefits and claims 6 months 6 months ended ended 30 June June 2011 Net benefits and claims General takaful fund (page 12) (9,973,054) (2,800,411) Family takaful fund (page 15) (8,184,477) (6,742,661) Investment-linked funds (page 57) - (453,154) (18,157,531) (9,996,226) Net benefits and claims are made of: (a) Gross benefits and claims paid General takaful fund (2,848,746) (4,415,776) Family takaful fund (13,227,926) (9,136,150) Investment-linked funds - (312,500) (16,076,672) (13,864,426) (b) Claims ceded to retakaful companies General takaful fund 161,461 1,466,804 Family takaful fund 5,740,333 2,063,490 Investment-linked funds - (104,295) 5,901,794 3,425,999

16 Net benefits and claims (continued) 6 months 6 months ended ended 30 June June 2011 (c) Gross change in contract liabilities General takaful fund (6,119,913) 658,560 Family takaful fund (296,343) 150,836 Investment-linked funds - - (6,416,256) 809,396 (d) Change in contract liabilities ceded to retakaful companies General takaful fund (1,165,856) (509,999) Family takaful fund (400,541) 179,163 Investment-linked funds - (36,359) (1,566,397) (367,195) 21. Taxation 6 months 6 months ended ended 30 June June 2011 Note Current income tax: Malaysian income tax 9,457,219 - Over provision in prior years - - 9,457,219 - Deferred tax: Relating to origination and reversal of temporary difference (331,595) 746,918 9,125, ,918 The income tax for the Shareholder's and General takaful funds are calculated based on the standard corporate tax rate of 25% (2011:25%) of the estimated assessable profit for the financial year. The income tax for the Family takaful fund is calculated based on tax rate of 8% (2011:8%) of the assessable investment income net of allowable deductions for the financial period. Profit/(loss) before zakat and taxation 32,516,175 9,246,381 Taxation at Malaysian statutory tax rate of 25% (2011:25%) 8,129,044 2,311,595 Expenses not deductible for tax purposes 996, ,683 Income not subject to tax - (1,942,360) 9,125, ,918

17 Cashflows From Operating Activities Current Period Year Ended Ended Note Profit/(loss) before zakat and taxation 32,516,175 22,514,069 Profit from government guaranteed bonds (2,317,691) (3,895,160) Profit from of Malaysian government securities (1,543,430) (2,019,448) Profit from of corporate debt securities (5,786,059) (7,349,884) Profit from deposits with financial institutions (1,274,159) (1,828,902) Dividend income from equity securities (1,702,516) (1,473,655) Increase in takaful contract liability 1,838,390 12,300,726 Non-cash items: Depreciation of plant and equipment 186, ,299 Provision for expense reserve 3,581,152 1,766,753 Amortisation of intangible assets 1,299,137 3,010,583 Net amortisation of investments 13(a) 1,350,297 (566,329) Decrease in unrealised gain on investments (1,651,639) 1,942,445 (Decrease)/increase in impairment allowance for doubtful debts (1,932,368) 1,541,532 Changes in working capital: (Increase) in receivables (10,364,198) (20,322,746) Decrease in payables 6,207,283 35,503,301 Increase in participants' fund 79,210, ,711,390 Profit paid to participants (1,304,204) (4,870,420) Donation to approved charity organisations - (882,727) Decrease/(increase) in retakaful assets 40,219,731 (36,673,804) Cash generated from operating activities 138,532, ,748,023 The Company classifies the cash flows from the acquisition and disposal of financial assets as operating cash flows, as the purchases are funded from the cash flows associated with the origination of takaful contracts, net of the cash flows for payments of benefits and claims incurred for takaful contracts, which are included in operating activities.