PROFIL KORPORAT CORPORATE PROFILE

Transcription

1 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 1 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 PROFIL KORPORAT BIMB Holdings Berhad (BHB) merupakan sebuah syarikat pegangan pelaburan yang beroperasi berlandaskan prinsip-prinsip Islam. Amalan perniagaan BHB yang beretika berjaya menarik pelabur dan pelanggan untuk berurusan dengannya. BHB telah diperbadankan di Malaysia pada 20 Mac 1997 dan disenaraikan di Papan Utama Bursa Saham Kuala Lumpur (kini Bursa Malaysia) pada 16 September tahun yang sama. Modal dibenarkan BHB adalah RM2 bilion manakala modal berbayarnya pula ialah RM562,965,000. Subsidiari-subsidiari teras Kumpulan BHB merupakan pemimpin dalam pelbagai aktiviti perkhidmatan kewangan Islam, termasuk perbankan, takaful, pembrokeran saham dan perkhidmatan-perkhidmatan lain yang berkaitan. 1 CORPORATE PROFILE BIMB Holdings Berhad (BHB) is an investment holding company which operates along Islamic principles. It holds broad appeal for investors and customers because of its reputation for ethical practices. BHB was incorporated in Malaysia on 20 March 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange (now Bursa Malaysia) on 16 September in the same year. The authorized capital of BHB is RM2 billion while its paid-up capital is RM562,965,000. The core subsidiaries of the BHB Group are leaders in various Islamic financial service activities including banking, takaful, stockbroking, and other related services.

2 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 2 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report PENYATA PENGERUSI CHAIRMAN S STATEMENT

3 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 3 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 PARA PEMEGANG SAHAM YANG DIHORMATI, Bagi pihak Lembaga Pengarah, saya dengan sukacitanya membentangkan Laporan Tahunan BIMB Holdings Berhad (BHB) bagi tahun kewangan berakhir 30 Jun Tahun ini merupakan tahun yang mencabar buat Kumpulan BHB. Sungguhpun beberapa anak syarikat utama kami yang menjalankan perniagaan takaful, pembrokeran saham dan sewaan melaporkan pendapatan dan keuntungan yang lebih baik berbanding dengan tahun lepas, segala pencapaian ini dinafikan oleh kerugian anak syarikat teras kami, Bank Islam Malaysia Berhad (Bank Islam) akibat hutang lapuk. Kerugian ini seterusnya menyebabkan Kumpulan BHB mencatatkan kerugian buat pertama kalinya. Walau berhadapan dengan rintangan ini, saya ingin memberi jaminan kepada semua pemegang saham bahawa pihak Lembaga Pengarah bersama-sama pasukan Pengurusan yang baru kini giat berusaha untuk meletakkan Kumpulan BHB kembali ke tahap keuntungan dalam tahun kewangan ini. 3 DISTINGUISHED SHAREHOLDERS, On behalf of the Board of Directors, I am pleased to present the BIMB Holdings Berhad (BHB) Annual Report for the financial year ended 30 June The year proved to be a challenging one for the BHB Group. While our major subsidiaries in takaful, stockbroking and leasing businesses reported overall increases in income and profits, these were negated by the loss suffered by our flagship subsidiary, Bank Islam Malaysia Berhad (Bank Islam) due to bad debts. This loss has subsequently brought the BHB Group into red territory for the first time. In spite of this setback, I would like to assure all our shareholders that the Board, together with the new management team, are working hard to put the BHB Group back on a sound and profitable financial standing in the current financial year.

4 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 4 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Dalam mengembalikan Kumpulan kepada kedudukan yang lebih kukuh, kami telah mula mengorak strategi yang bersekitar aktiviti berteraskan pemulihan dan keberuntungan untuk jangka masa pendek, sederhana dan panjang. 4 In getting the Group back on solid ground, we have put into place strategies for the short, medium and long terms which focus on recovery and regaining profitability.

5 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 5 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Prestasi Kewangan Sungguhpun jumlah perolehan menyaksikan peningkatan sebanyak RM1.08 bilion, Kumpulan BHB telah mengalami kerugian bersih sebanyak RM456.9 juta akibat daripada peruntukan untuk pembiayaan tidak berbayar (NPF) yang dilakukan oleh Bank Islam yang berjumlah RM700.9 juta. Di peringkat bank, Bank Islam mengalami kerugian sebelum zakat dan cukai (LBZT) sebanyak RM479.8 juta sungguhpun memperoleh pendapatan berjumlah RM873.1 juta, yakni peningkatan sebanyak 27% daripada tempoh yang sama tahun lepas. Sebahagian besar peruntukan tersebut adalah untuk NPF anak syarikat luar pesisir Bank Islam, Bank Islam (L) Ltd, yang kini telah ditukarkan status menjadi cawangan luar pesisir inisiatif yang mencerminkan kesungguhan pihak Lembaga Pengarah dalam usaha untuk meningkatkan tahap pengawal seliaan serta memupuk amalan pengurusan risiko yang lebih baik. Dengan peruntukan tersebut, NPF Bank Islam kini berada pada tahap RM1.16 bilion, mewakili nisbah bersih sebanyak 12.46%. Kadar NPF kasar Bank Islam berjumlah RM2.23 bilion. Namun begitu, prestasi perniagaan perbankan kami sebenarnya tidak membayangkan keputusan perniagaan tiga anak syarikat utama kami yang lain, yakni Syarikat Takaful Malaysia Berhad (Takaful Malaysia), BIMB Securities Sdn Bhd dan Syarikat Al-Ijarah Sdn Bhd. Kumpulan Takaful Malaysia mencatatkan keuntungan sebelum zakat dan cukai (PBZT) sebanyak RM32.6 juta daripada RM23.1 juta pada 2004, manakala Kumpulan BIMB Securities pula mencatatkan PBZT sebanayak RM11.8 juta daripada RM5.0 juta pada 2004, sementara Syarikat Al-Ijarah mencatatkan PBZT sebanyak RM16.1 juta daripada LBZT sebanyak RM14.8 juta pada Financial Performance Despite recording a higher turnover of RM1.08 billion during the year under review, the Group registered a net loss of RM456.9 million. This is mainly due to higher provisions of RM700.9 million being allocated for the non-performing financings (NPFs) by Bank Islam. At the Bank level, Bank Islam incurred a loss before zakat and taxation (LBZT) of RM479.8 million, although it reported an overall revenue of RM873.1 million, a growth of 27% from the previous corresponding period. A large percentage of the provisions were attributed to the NPFs of Bank Islam s offshore subsidiary, Bank Islam (L) Ltd. The subsidiary has since been converted to an offshore branch a move that reflects the overall effort taken by the Board of Directors to enhance supervision and inculcate more appropriate risk management practices. With the provisions, the Bank s NPFs stood at RM1.16 billion, representing a net ratio of 12.46%. Bank Islam s gross NPFs stand at RM2.23 billion. In spite of the jolts in the banking arm, the Group s other businesses performed remarkably well, as demonstrated by three of our main subsidiaries, namely Takaful Malaysia Group, BIMB Securities Group and Syarikat Al-Ijarah. Takaful Malaysia registered a profit before zakat and taxation (PBZT) of RM32.6 million from RM23.1 million in 2004, BIMB Securities Group recorded a PBZT of RM11.8 million from RM5.0 million in 2004, and Syarikat Al-Ijarah registered RM16.1 million in PBZT from a RM14.8 million LBZT in 2004.

6 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 6 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report Pemulihan Dalam mengembalikan Kumpulan kepada kedudukan yang lebih kukuh, kami telah mula mengorak strategi yang bersekitar aktiviti berteraskan pemulihan dan keberuntungan untuk jangka masa pendek, sederhana dan panjang. Dalam menangani masalah NPF, kami telahpun memulakan usaha untuk mewujudkan sebuah kenderaan kegunaan khusus (SPV) untuk menguruskan portfolio aset bermasalah berjumlah RM1.66 bilion sementara baki sebanyak RM561 juta yang majoritinya terdiri daripada pembiayaan perumahan akan dikekalkan dan diuruskan di peringkat Bank. Fokus utama SPV tersebut adalah untuk mengurus serta memulih semula NPF secara agresif supaya kami dapat membersihkan buku akaun, memperkemaskan lembaran imbangan dan seterusnya memberi tumpuan lebih kepada usaha untuk membangunkan lagi perniagaan. Kami turut merancang untuk melaksanakan aktiviti penyuntikan modal untuk menyokong pertumbuhan dan membolehkan Kumpulan beroperasi secara optimum. Pada masa yang sama, kami turut memperketatkan lagi langkah-langkah pengawalan risiko di peringkat bank disamping melaksanakan program pengurangan kos sebanyak 25%.

7 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 7 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report Turnaround In getting the Group back on solid ground, we have put into place strategies for the short, medium and long terms which focus on recovery and regaining profitability. In tackling the NPFs, we have already begun preparatory work to set up a special purpose vehicle (SPV) to manage Bank Islam s distressed assets portfolio amounting to RM1.66 billion, while the remaining RM561 million comprising mainly housing financings would be retained and managed at the Bank level. The sole focus of the SPV is to aggressively manage and recover the NPFs so that we can clean up our books, streamline our balance sheet and concentrate on building our businesses. We are also looking at a capital injection exercise to raise capital to support growth and allow the Group to operate at its optimum. At the same time, risk and control measures are being tightened Bank-wide, along with a programme to cut costs by 25% from the previous year.

8 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 8 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Perbankan Kami akan terus membina kekuatan serta memperbaiki kelemahan sedia ada dalam Bahagian Perbankan. Dengan diterajui oleh Pengarah Urusan dan disokong oleh barisan Pengurusan yang baru, Bank Islam telah membentangkan pelan strategik yang memfokus kepada empat perkara teras: francais atau perniagaan, sumber manusia, pengawalan risiko serta kewangan. Tumpuan lebih akan diberikan kepada usaha untuk membangunkan perniagaan perbankan pengguna dan korporat dengan memperkenalkan amalan jualan dan pemasaran yang lebih kukuh khususnya dalam meningkatkan pegangan pasaran dalam pembiayaan perumahan, kenderaan, peribadi dan kad kredit. Kami telah mula menjalankan pembiayaan berteraskan aset dan pengurusan tunai pada skala yang lebih besar. Usaha ke arah meningkatkan pendapatan berteraskan yuran dalam pasaran modal hutang dipergiatkan lagi sementara pembiayaan perdagangan, pengurusan tunai dan pendedahan akan terus menjadi salah satu daripada fokus utama kami. Bagi perbankan komersial pula, fokus kami adalah untuk mempertingkatkan jualan dan agihan produk serta perkhidmatan kami. Kami akan turut memberi tumpuan khusus kepada perkhidmatan perdagangan. Kami juga telah mula mengorak langkah untuk membangunkan operasi pembiayaan mikro dalam masa terdekat ini. Tumpuan lebih akan diberikan kepada usaha untuk membangunkan perniagaan perbankan pengguna dan korporat dengan memperkenalkan amalan jualan dan pemasaran yang lebih kukuh khususnya dalam meningkatkan pegangan pasaran dalam pembiayaan perumahan, kenderaan, peribadi dan kad kredit. 8 Banking At the banking group, we will continue to build on our strengths and address our inherent weaknesses. Steered by a new Managing Director and supported by a fresh Management team, Bank Islam has outlined a strategic plan which concentrates on four core areas: franchise, people, risks and controls, and financials. More attention will be paid to building the Bank s consumer and corporate banking franchise by establishing a stronger sales and marketing culture, with greater focus on increasing market share in credit card, home, vehicle and personal financing. We have also begun to embark on asset-based financing and cash management activities on a bigger scale. Efforts at generating more fee-based income in debt capital markets are being stepped up, while trade finance, cash and exposure management will continue to be a core offering. For commercial banking, focus will be on improving sales and distribution of our products and services. Our efforts will give special emphasis to trade services. We have also started groundwork for the establishment of a full-fledged micro-finance business in the near future.

9 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 9 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Takaful Dalam tahun kewangan yang sedang dikaji, Takaful Malaysia akan terus menggiatkan usaha kutipan sumbangan takaful tertunggak. Inisiatif ini akan dipantau oleh sebuah Jawatankuasa Ko-ordinasi/ Pemasaran yang dipengerusikan oleh Ketua Pegawai Eksekutif. Takaful Malaysia turut komited untuk meningkatkan kecekapan berpandukan piawaian ISO9001:2000 untuk memulakan program bancatakaful serta pertukaran efisien antara anak-anak syarikat Kumpulan BHB. Kami amat optimistik tentang prospek industri takaful. Kami yakin bahawa pemberian empat lesen takaful yang baru oleh bank pusat akan meningkatkan lagi tahap kesedaran orang ramai terhadap produk takaful. Dengan bertambahnya persaingan, kami percaya orang ramai akan memilih produk terbaik di pasaran. Dengan rekod pembayaran keuntungan paling tinggi di pasaran kepada para pelanggannya, kami yakin Takaful Malaysia mampu menyerlah berbanding pencabarnya yang lain. Meninjau ke hadapan, berdasarkan model perniagaan yang diamalkannya yang terbukti berjaya, kami menjangkakan akan dapat terus menerajui industri takaful untuk tahun-tahun yang akan datang. 9 Takaful In the year under review, Takaful Malaysia will continue to intensify efforts to collect outstanding takaful contributions. This initiative will be closely monitored by the Management Co-ordination / Marketing Committee which is chaired by the Chief Executive Officer. Takaful Malaysia is also committed to increasing efficiency via the ISO9001:2000, embarking on the bancatakaful programme and initiating efficient exchanges within the BHB Group. We are very optimistic about the prospects of the takaful industry. We believe that the recent issuance of four new Takaful licences by the central bank will increase public awareness of takaful products. With increased competition, we also believe that the public will go for the best deal this is where Takaful Malaysia, with its track record of paying the highest profits to customers will have the edge over competitors. More attention will be paid to building the Bank s consumer and corporate banking franchise by establishing a stronger sales and marketing culture, with greater focus on increasing market share in credit card, home, vehicle and personal financing. Moving forward, based on Takaful Malaysia s success-proven business model, we foresee that we will continue to dominate the takaful industry in the years to come.

10 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 10 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report Pembrokeran Saham BIMB Securities terus memperkukuhkan bahagian urusniaganya khususnya dalam bidang jualan, penyelidikan dan urusniaga eksekutif untuk mengurus para pelanggan institusinya. Pada tahun kewangan sedang dikaji, BIMB Securities telahpun memperkenalkan ECOS, satu perkhidmatan inovatif yang menyediakan perkhidmatan jual-beli saham melalui internet bagi memudahkan pelabur runcit di kalangan individu untuk berjual-beli dari keselesaan rumah mereka sendiri. Sungguhpun majoriti pelanggan runcit kami terdiri daripada golongan Islam, kami telah turut berjaya menarik penyertaan pelanggan institusi yang terdiri daripada golongan bukan Islam termasuk syarikat-syarikat pengurusan amanah saham yang mana BIMB Securities merupakan Penasihat Shariah untuk dana-dana amanah saham Islam mereka. BIMB Securities berazam untuk membangunkan serta meningkatkan perniagaan runcitnya sebagai sebuah syarikat pembrokeran saham yang disokong oleh bank. Kami akan memanfaatkan sepenuhnya rangkaian cawangan Bank Islam yang besar serta status cawangan Bank Islam selaku Peniaga Terkecuali. Kami akan turut terus agresif dalam mempromosi kemudahan pembiayaan margin kepada golongan pelanggan yang Islam dan bukan Islam.

11 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 11 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report Stockbroking BIMB Securities has been strengthening its dealing team in terms of sales, research and dealing executives for our institutional clients. In the year under review, BIMB Securities introduced ECOS, an innovative service that provides internet share trading services to enable individual retail investors to trade from the convenience of their homes. While most of our retail customers are Muslims, we have achieved a considerable amount of success in attracting non-muslim institutional customers, including unit trust management companies and fund management companies to which BIMB Securities serves as Shariah Adviser for their Islamic unit trust funds. BIMB Securities is keen to develop and raise our retail business as a bank-backed stockbroking entity. We will take full advantage of the widespread branch network of Bank Islam and utilize the branches Exempt Dealer status. We will also continue to aggressively promote Islamic Margin Financing facilities to both Muslim and non-muslim retail clients.

12 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 12 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Kumpulan BHB telah mula meneroka pasaran-pasaran baru yang berpotensi untuk berkembang dan menguntungkan secara agresif, baik di dalam mahupun di luar negara. 12 The BHB Group aims to be a leading player in the local and global scenes, offering innovative products and services.

13 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 13 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Modal Teroka Dari segi meningkatkan kemampuan teras syarikat, BIMB Venture Capital Sdn Bhd telah mengekalkan tahap kecekapan operasi yang tinggi melalui amalan polisi sumber manusianya yang menekankan aspek berhemat. Ianya juga turut menyumbang ke arah peningkatan prestasi syarikat meskipun dengan jumlah kakitangan yang terhad. Salah satu kejayaan utama syarikat dalam tahun kewangan adalah penyenaraian empat buah syarikat yang mana BIMB Venture Capital mempunyai pelaburan dalamnya di Bursa Malaysia berbanding hanya tiga buah syarikat pada Cadangan penyuntikan dana Musyarakah tambahan sebanyak RM30 juta daripada Kumpulan BHB ke dalam BIMB Musyarakah Dua Sdn Bhd telah ditangguh apabila dana tersebut terpaksa disalurkan kepada Bank Islam. Lantas, aktiviti pelaburan BIMB Venture Capital tidak dapat berkembang pada tahap seperti yang diharapkan disebabkan kekurangan dana. Namun begitu, syarikat kini proses untuk mendapatkan dana baru untuk terus menjana operasi perniagaannya. 13 Venture Capital As far as strengthening core competencies goes, BIMB Venture Capital Sdn Bhd has maintained high efficiency through a prudent staffing policy. Unnecessary recruiting is avoided and financial results have continued to show a good growth level despite just a handful of employees. A notable achievement during the financial year was the listing of four investee companies in Bursa Malaysia, compared to the three investee companies listed in A proposed injection of Musyarakah funding of RM30 million from the BHB Group into BIMB Musyarakah Dua Sdn Bhd was reallocated to Bank Islam. Hence, BIMB Venture Capital Sdn Bhd remains status quo in terms of its funding size. Nonetheless, plans are underway to source for funding.

14 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 14 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Dividen Kami amat menghargai sokongan dan kesetiaan yang dipamerkan oleh para pemegang saham kepada Kumpulan BHB selama ini. Sebagai menghargai sokongan ini, pihak Lembaga Pengarah BHB mencadangkan dividen pertama dan akhir sebanyak 2.5 peratus, kurang 28 peratus cukai berbanding 8.5 peratus pada Ini melibatkan pembayaran sebanyak RM10.13 juta kepada pemegang saham berbanding RM34.45 juta pada Masa Depan Kewangan Islam terus mengumpul momentum di Malaysia dan seluruh dunia melalui peningkatan permintaan orang ramai terhadap produk dan perkhidmatan kewangannya, baik yang beragama Islam mahupun sebaliknya. Berdasarkan suasana positif ini, Kumpulan BHB terus mensasarkan untuk menjadi salah sebuah kumpulan kewangan Islam terunggul yang menawarkan produk dan perkhidmatan yang inovatif dalam pasaran tempatan dan global. Dalam pada kami yakin akan dapat memulihkan kedudukan dalam jangka masa terdekat ini, kami telah turut mula meneroka pasaran-pasaran baru yang berpotensi untuk berkembang dan menguntungkan secara agresif, baik di dalam mahupun di luar negara. Ke arah merealisasikan matlamat ini, kami bukan sekadar mempelawa pelabur asing untuk memperkembangkan perniagaan kami dalam negara tetapi juga berhasrat untuk menembusi pasaran baru luar negara di mana prospek masa depan perbankan dan kewangan Islam cerah. 14 Dividends The BHB Group is deeply appreciative of the support and loyalty shown to us by our shareholders. In acknowledgement of this, the BHB Group Board of Directors is recommending a first and final dividend of 2.5%, less 28% taxation compared to 8.5% in FY This involves a payment of RM10.13 million to shareholders as compared to RM34.45 million in FY Outlook Islamic finance is gathering momentum in Malaysia and elsewhere around the world among Muslims and non-muslims alike, who seek such services as a financial intermediation. Against this positive backdrop, the BHB Group aims to be a leading player in the local and global scenes, offering innovative products and services. While we are confident of recovery in the near future, we are aggressively exploring avenues and tapping opportunities that spell growth and profitability, be they at home or abroad. To this end, not only are we looking at inviting foreign investors to participate in our growth, we also intend to penetrate new markets where demand for Islamic banking and finance are on the uptrend.

15 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 15 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Penghargaan Sebelum mengundurkan diri, saya ingin merakamkan ucapan penghargaan saya kepada Y.Bhg. Dato Mohd Yusoff Haji Nasir, bekas pengerusi Kumpulan yang telah bersara daripada Lembaga Pengarah pada 1 Disember 2004 dan Encik Khalid Mahmood Bhaimia yang telah meletakkan jawatan pada 12 November 2004 atas segala sumbangan bernilai mereka semasa berkhidmat sebagai ahli-ahli Lembaga Pengarah BHB dan Bank Islam. Saya turut ingin mengucapkan selamat datang kepada Dato Noorazman A. Aziz dan Encik Salih Amaran Jamiaan yang baru sahaja menyertai Lembaga Pengarah. Penghargaan juga saya berikan kepada rakan-rakan lain dalam Lembaga Pengarah, Majlis Pengawasan Syariah, Jawatankuasa Pengurusan Kumpulan dan semua kakitangan atas komitmen dan usaha mereka. Akhir sekali, saya ingin mengucapkan jutaan terima kasih kepada semua pemegang saham dan pelanggan atas sokongan yang tidak berbelah bahagi. Kami kini sudah bersiap-sedia untuk menghadapi senario kewangan Islam yang berkembang pesat. Halatuju di hadapan kelihatan cerah dan penuh dengan peluang yang boleh diterokai. Dengan kami menyusun atur semula Kumpulan, kami yakin akan dapat terus memacu ke hadapan. Dato Mohd Bakke Salleh Timbalan Pengerusi 15 Acknowledgements Before I conclude, I wish to express my appreciation to Y.Bhg. Dato Mohd Yusoff Haji Nasir, our previous chairman who retired from the Board on 1 December 2004, and Mr. Khalid Mahmood Bhaimia, who resigned on 12 November 2004, for their invaluable contributions throughout their tenure as Directors of BHB and Bank Islam. I would also like to welcome Dato Noorazman A. Aziz and Encik Salih Amaran Jamiaan who have just joined us on the Board. My gratitude goes to my colleagues on the Board, members of the Shariah Supervisory Council, the Group Management Committee and all employees for their commitment and effort. Last but not least, I wish to thank all our shareholders and customers for their undivided support. We are gearing up for the rapidly moving scenario of Islamic finance. The way ahead shines with possibilities. By putting our house in order first, we are poised to soar. Dato Mohd Bakke Salleh Deputy Chairman

16 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 16 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report ULASAN PRESTASI KUMPULAN GROUP PERFORMANCE REVIEW

17 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 17 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Kewangan Islam bertujuan membentuk dan memajukan aplikasi prinsip-prinsip, perundangan serta nilai-nilai Islam di dalam urusan kewangan dan perbankan serta urusan perniagaan yang berkaitan. Prinsip-prinsip ini mesti diterima dan berselari dengan ketentuan Syariah. 17 Islamic finance aims to promote and develop the application of Islamic principles, law and values to transactions of financial, banking and related business affairs. These principles must be acceptable and consistent with the Shariah precept.

18 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 18 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 RINGKASAN KEWANGAN 5 TAHUN KUMPULAN 5-YEAR FINANCIAL HIGHLIGHTS OF THE GROUP Jun / June 2005 RM 000 RM 000 RM 000 RM 000 RM 000 Modal Saham/ Share Capital 562, , , , ,965 Dana Pemegang Saham/ Shareholders Fund 1,086,537 1,581,922 1,533,014 1,458,795 1,410,458 Deposit Pelanggan/ Deposits from Customers 13,238,227 11,809,842 12,422,128 11,036,657 8,976,652 Dana Takaful/ Takaful Funds 2,172,424 1,941,564 1,577,795 1,273,057 1,043,966 Pembiayaan Pelanggan/ Financing of Customers 9,212,896 8,778,174 7,868,682 6,189,844 5,800,715 Pelaburan/ Investments 4,742,913 4,872,749 5,412,571 4,433,808 2,882,469 Jumlah Aset/Total Assets 18,507,972 16,891,527 17,096,600 15,715,832 12,516,372 Perolehan/ Revenue 85, , , , ,560 (Kerugian)/ Keuntungan Sebelum Zakat dan Cukai/ (400,489) 118, ,521 78,600 70,397 (Loss)/ Profit before Zakat and Taxation (Kerugian)/ Keuntungan Bersih/ Net (Loss)/ Profit (456,851) 85,748 92,187 37,724 26,730 Dividen selepas Cukai/ Dividend less Taxation 10,133 34,453 34,453 20,267 17,227 Nisbah Pembiayaan kepada Deposit (%)/ Financing to Deposit Ratio (%) Pembiayaan Tidak Berbayar Bersih (%)/ Net Non-Performing Financing (%) (Kerugian)/ Pendapatan sesaham (sen)/ (81.15) (Loss)/ Earnings per share (sen) Aset Ketara Bersih sesaham (RM)/ Net Tangible Assets per share (RM) Dividen Kasar sesaham (%) / Gross Dividend per share (%) Dividen Bersih sesaham(%) / Net Dividend per share (%) KALENDAR KEWANGAN FINANCIAL CALENDAR Laporan Keputusan Suku Tahunan / Quarterly Results Announcement Suku pertama berakhir 30 September 2004 / First quarter ended 30 September November 2004 /29 November 2004 Suku kedua berakhir 31 Disember 2004 / Second quarter ended 31 December Mac 2005/11 March 2005 Suku ketiga berakhir 31 Mac 2005/ Third quarter ended 31 March Mei 2005/30 May 2005 Suku keempat berakhir 30 Jun 2005/Fourth quarter ended 30 June Oktober 2005 / 7 October 2005 HARGA SAHAM DI BURSA MALAYSIA SECURITIES BERHAD SHARE PRICES ON THE BURSA MALAYSIA SECURITIES BERHAD Pada 30 September 2005/ As at 30 September 2005 Tertinggi (RM)/Highest (RM): 1.76 Terendah (RM)/Lowest (RM): Penutup (RM)/ Closing (RM):

19 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 19 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 IMBASBALIK STATISTIK 5 TAHUN KUMPULAN 5-YEAR STATISTICAL REVIEW OF THE GROUP RM Bilion/Billion RM Bilion/Billion RM Bilion/Billion Dana Pemegang Saham/ Shareholders Fund Deposit Pelanggan/ Deposits from Customers Pembiayaan Pelanggan / Financing of Customers RM Bilion/Billion RM Bilion/Billion RM Juta/Million (400.49) 19 Jumlah Aset/ Total Assets Dana Takaful/ Takaful Funds (Kerugian)/ Keuntungan Sebelum Zakat dan Cukai /(Loss)/ Profit Before Zakat dan Taxation Sen/Sen RM /RM (Kerugian)/Pendapatan Saham/ (Loss)/ Earnings Per Share (81.15) Aset Ketara Bersih Sesaham / Net Tangible Assets Per Share

20 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:51 PM Page 20 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report ULASAN OPERASI OPERATIONS REVIEW

21 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 21 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Amalan riba dalam semua bentuk urusan berkaitan dengan perbankan adalah ditegah dalam prinsip-prinsip utama Islam. Ia juga menegah monopoli serta perbuatan menyorok wang. Semua urus niaga dan kegiatan perdagangan mesti berlandaskan keuntungan yang munasabah dan halal. 21 The main principles of Islamic banking prohibit usury in all transactions. They also prohibit monopoly and hoarding, and the undertaking of business and trade activities must be on the basis of fair and legitimate (halal) profit.

22 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 22 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 BIMB mencatatkan pertumbuhan bagi pendapatan pelaburan dana pendeposit dan pemegang saham sebanyak 27% daripada RM687.2 juta pada tahun kewangan 2004 kepada RM873.1 juta dalam tahun kewangan semasa. 22 BIMB registered a 27% increase in total income from investment of depositors and shareholders funds from RM687.2 million in financial year 2004 to RM873.1 million in the current financial year.

23 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 23 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 STRUKTUR KORPORAT KUMPULAN GROUP CORPORATE STRUCTURE PERBANKAN/ BANKING BANK ISLAM MALAYSIA BERHAD BANK ISLAM (L) LTD 100% 100% AL-WAKALAH NOMINEES (TEMPATAN) SDN BHD 100% BIMB UNIT TRUST MANAGEMENT BERHAD 100% BIMB INTERNATIONAL ISLAMIC TRUST (LABUAN) SDN BHD 100% BIMB TRUST LTD 100% BIMB FOREIGN CURRENCY CLEARING AGENCY SDN BHD 75.5% TAKAFUL/ TAKAFUL SYARIKAT TAKAFUL MALAYSIA BERHAD ASEAN RETAKAFUL INTERNATIONAL (L) LTD 76% 69.56% PT SYARIKAT TAKAFUL INDONESIA 56.51% PEMBROKERAN STOK & SAHAM/STOCK & SHARE BROKING BIMB SECURITIES (HOLDINGS) SDN BHD BIMB SECURITIES SDN BHD 51% BIMSEC NOMINEES (ASING) SDN BHD 100% 100% BIMSEC NOMINEES (TEMPATAN) SDN BHD 100% BIMSEC ASSET MANAGEMENT SDN BHD 100% 23 PENGURUSAN HARTA/ PROPERTY MANAGEMENT SYARIKAT AL-IJARAH SDN BHD 100% PEGANGAN PELABURAN MODAL TEROKA/INVESTMENT HOLDINGS VENTURE CAPITAL BIMB VENTURE CAPITAL SDN BHD 100% BIMB MUSYARAKAH SATU SDN BHD 100% LAIN-LAIN/ OTHERS PEMBIAYAAN PERUMAHAN NASIONAL SDN BHD 51% ISLAMIC BANKING & FINANCE BIRT ACADEMIC SERVICES INSTITUTE MALAYSIA SDN BHD* SDN BHD 100% 48% * Syarikat Bersekutu /Associate Company

24 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 24 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 ULASAN OPERASI MENGIKUT JUZUK PERNIAGAAN OPERATIONS REVIEW BY BUSINESS DIVISIONS Kumpulan Perbankan Bank Islam Malaysia Berhad (Bank Islam) mencatatkan pertumbuhan bagi pendapatan pelaburan dana pendeposit dan pemegang saham sebanyak 27% daripada RM687.2 juta pada tahun kewangan (TK) 2004 kepada RM873.1 juta dalam tahun kewangan semasa. Namun, peruntukan besar yang dibuatnya untuk pembiayaan tidak berbayar (NPF) mengakibatkan Bank mengalami kerugian sebelum zakat dan cukai (LBZT) berjumlah RM479.8 juta berbanding keuntungan sebelum zakat dan cukai (PBZT) RM98.3 juta pada Jumlah aset Bank mencatatkan pertumbuhan 22% kepada RM15.8 bilion daripada RM12.9 bilion pada 2004 berikutan penukaran status anak syarikat luar pesisirnya di Labuan, Bank Islam (L) Ltd kepada Cawangan Luar Pesisir Bank Islam (BILOB) pada 10 Disember Jumlah aset Bank kini mewakili 16% daripada industri perbankan Islam dan 2% daripada keseluruhan industri perbankan. Jumlah deposit meningkat 20% kepada RM13.5 bilion daripada RM11.3 bilion pada TK Peningkatan mendadak ini adalah hasil daripada akaun-akaun besar yang diperolehi daripada beberapa institusi pengajian tinggi. Jumlah deposit Bank kini mewakili 19% jumlah deposit industri perbankan Islam atau 2% deposit industri perbankan secara keseluruhan. 24 Banking Group Bank Islam Malaysia Berhad (Bank Islam), registered a 27% increase in total income from investment of depositors and shareholders funds from RM687.2 million in financial year (FY) 2004 to RM873.1 million in the current financial year. However, it recorded a loss before zakat and taxation (LBZT) of RM479.8 million, compared to a profit before zakat and taxation (PBZT) of RM98.3 million previously. This was due to higher provisions recognized in addressing the non-performing financings (NPF) accounts. Bank Islam recorded a 22% growth in total assets to RM15.8 billion in the current financial year from RM12.9 billion previously, following the conversion of its Labuan offshore subsidiary, Bank Islam (L) Ltd. (BILL) into a branch, Bank Islam Labuan Offshore Branch (BILOB) on 10 December This captured a 16% market share of the Islamic banking industry and a 2% market share of the total banking industry respectively. Total deposits also increased by 20% to RM13.5 billion, as at the current financial year-end, from RM11.3 billion previously. The hike in deposits can be attributed to aggressive marketing, which secured major accounts from higher education institutions. Total deposits currently represent 19% of the Islamic banking industry or 2% of the total banking industry.

25 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 25 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Pertambahan dibuat dalam elaun am sebanyak RM19.3 juta dalam tahun kewangan seiring dengan peningkatan jumlah pembiayaan. Sebaliknya, hanya RM36.4 juta yang telah diambilkira semula berbanding RM44.8 juta pada TK Elaun khusus pula menyaksikan trend meningkat, dengan elaun tambahan yang dikenakan (setelah mengambilkira jumlah diambilkira semula) berjumlah RM576.7 juta berbanding RM113.1 juta pada TK BIMB Unit Trust Management Berhad (BUTM), sebuah anak syarikat Bank, kembali mencatatkan PBZT berjumlah RM99,000 hasil pendapatan fi dan komisen sebanyak RM1.4 juta. BUTM turut mencatatkan keuntungan dari penjualan Sekuriti Hutang Islam yang lebih tinggi pada tahun ulasan iaitu sebanyak RM430,000 berbanding dengan hanya RM111,000 pada TK 2004 hasil daripada persekitaran positif dalam pasaran bon. BIMB Foreign Currency Clearing Agency Sdn Bhd (BIFCCA) terus mengalami LBZT sebanyak RM6.25 juta berbanding RM2.4 juta pada TK Pertambahan kerugian ini disebabkan peningkatan elaun hutang ragu dan kenaikkan elaun penyusutan nilai stok mata wang asing. 25 The additional general allowance of RM19.3 million made is in tandem with the increase in total financing during the financial year. In contrast, only RM36.4 million was written back as compared to RM44.8 million in the prior year. Specific allowance has been on an increasing trend, with additional allowance (net of recoveries) of RM576.7 million in the current financial year as opposed to RM113.1 million in the previous corresponding year. BIMB Unit Trust Management Berhad (BUTM), the manager of Bank Islam s unit trust rebounded from registering a loss in the last corresponding financial year to record a PBZT of RM99,000 on the back of RM1.4 million income from fees and commissions. BUTM also posted higher gains in disposal of investments in Islamic Debt Securities in the year under review, of RM430,000, compared to only RM111,000 in FY 2004 due to favourable developments in the bond market. BIMB Foreign Currency Clearing Agency Sdn Bhd (BIFCCA) again posted an LBZT of RM6.25 million against an LBZT of RM2.4 million in FY The loss is attributed to an exceptional item of allowance for doubtful receivables and a higher allowance for write down in value of foreign currencies stock.

26 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 26 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report Kumpulan Takaful Kumpulan Syarikat Takaful Malaysia Berhad (Takaful Malaysia) mencatatkan peningkatan pendapatan sebanyak 12% kepada RM130.9 juta daripada RM117.3 juta pada tahun Kumpulan turut mencatatkan peningkatan sebanyak 4% pada PBZT kepada RM32.6 juta daripada RM23.1 juta pada TK Catatan keuntungan yang lebih baik ini adalah berdasarkan kenaikkan menyeluruh dalam pendapatan daripada perniagaan takaful keluarga dan takaful am, pendapatan pelaburan dan pendapatan lain. Di peringkat syarikat, perniagaan takaful am dan takaful keluarga mencatatkan prestasi yang membanggakan dan telah menyumbang secara ketara kepada prestasi keseluruhan Kumpulan pada TK Jumlah keuntungan hasil daripada perniagaan takaful am dan takaful keluarga yang dipindahkan ke akaun perolehan Syarikat meningkat masing-masing sebanyak 25% kepada RM76.1 juta (TK 2004: RM60.7 juta) dan 18% kepada RM36.9 juta (2004: RM31.3 juta). Daripada segi pelaburan Syarikat pula, Dana Pemegang Saham mencatatkan pertumbuhan dalam pulangan pelaburan bersih sebanyak 79% kepada RM11.8 juta (TK 2004: RM6.6 juta). Asean Retakaful International (L) Ltd (ARIL) mencatatkan peningkatan dalam PBZT sebanyak 176% atau RM2.4 juta kepada RM3.8 juta daripada RM1.4 juta pada TK Pencapaian ini mencerminkan peningkatan keseluruhan dalam pelaburan dan pendapatan lain yang mencatatkan RM2.3 juta berbanding RM0.3 juta pada TK 2004.

27 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 27 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report Takaful Group Syarikat Takaful Malaysia Berhad (Takaful Malaysia) Group recorded better results in both revenue and PBZT compared to the last financial year. Takaful Malaysia s revenue increased by 12% to RM130.9 million from RM117.3 million in FY Likewise, Takaful Malaysia also recorded a higher profit before zakat, tax and minority interest which increased by 4% to RM32.6 million from RM23.1 million in FY The higher profitability can be attributed to Takaful Malaysia s overall improvement in revenue from family and general takaful businesses, investment income and other income during FY At the Company level, general takaful and family takaful businesses registered a commendable performance, which contributed significantly to the overall performance for FY The share of profit transferred to the revenue accounts of the Company by general takaful business and family takaful business increased by 25% to RM76.1 million (FY 2004: 60.7 million) and by 18% to RM36.9 million (FY 2004: RM31.3 million) respectively. On the investment front of the Company, the Shareholders Fund registered an increase in the net investment return of 79% to RM11.8 million (FY 2004: RM6.6 million). Asean Retakaful International (L) Ltd (ARIL) registered an increase of RM2.4 million or 176% in its PBZT to RM3.8 million in the year under review as opposed to RM1.4 million in FY The hike is reflective of ARIL s overall improvement in investment and other income making up to RM2.3 million against only RM0.3 million posted in the last corresponding year.

28 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 28 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 P. T. Syarikat Takaful Indonesia (STI), sebuah anak syarikat Takaful Malaysia mengalami LBZT sebanyak RM 6.8 juta berbanding keuntungan RM0.6 juta pada TK Sungguhpun STI mencatatkan peningkatan dari segi sumbangan kasar sebanyak 5.44% atau RM3.4 juta, syarikat tersebut mengalami penurunan dari segi pendapatan sebanyak RM19.6 juta berbanding RM23.4 juta pada TK Kos operasi STI turut meningkat kepada RM26.0 juta (TK 2004: RM22.7 juta). Kumpulan Pembrokeran Saham Berdasarkan kepada beberapa perkembangan positif dalam pasaran ekuiti, Kumpulan BIMB Securities Sdn Bhd (BIMB Securities) telah berjaya mencatatkan peningkatan lebih 100% dalam PBZT kepada RM11.8 juta daripada RM5.0 juta pada TK BIMB Securities mencadangkan pembayaran dividen pertama dan akhir sebanyak 7 sen sesaham biasa, kurang 28 % cukai berjumlah RM5.04 juta bagi TK Di peringkat syarikat, BIMB Securities mencatatkan peningkatan PBZT kepada RM11.1 juta berbanding RM4.7 juta pada TK Pencapaian tersebut adalah hasil daripada perolehan daripada penjualan saham-saham Bursa Malaysia selain daripada pertambahan write back pelepasan bagi penyusutan nilai pelaburan. Namun demikian, BIMB Securities masih kurang menyerlah dalam operasi runcit. Jumlah pelanggan runcit BIMB Securities yang terdiri daripada 5% hingga 7.5% masih kecil berbanding keseluruhan pelanggannya. Dan meskipun jumlah pelanggan bukan Islam meningkat dari setahun ke setahun, jumlahnya masih kecil. 28 P. T. Syarikat Takaful Indonesia (STI), a subsidiary of Takaful Malaysia, posted an LBZT of RM6.8 million as compared to a profit of RM0.6 million in FY Despite being in a loss position, STI recorded an improvement of 5.44% or RM3.4 million in its gross contribution. STI however, recorded a lower revenue of RM19.6 million compared to the previous year of RM23.4 million and it incurred a higher operating cost of RM26.0 million (FY 2004: RM22.7 million). Stockbroking Group Owing to some favourable developments in the equity markets, BIMB Securities Sdn Bhd (BIMB Securities) Group has been able to record a PBZT of RM11.8 million for FY This reflects an increase of more than 100% from the PBZT of RM5.0 million in the previous year, FY BIMB Securities will propose a final dividend of 7 sen per ordinary share, less 28 % taxation, totalling RM5,040,000, in respect of FY BIMB Securities at the Company level showed an improved PBZT of RM11.1 million compared with RM4.7 million in FY The improved PBZT was due to the gains made in disposing Bursa Malaysia shares as well as a higher write back of allowance for diminution in value of investments. On the retail front, success has been limited. BIMB Securities overall retail customer base is small, comprising only some 5% to 7.5% of its total customer base. Though the number of non-muslim customers has been on the rise, the increase has been quite slow.

29 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 29 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Harta Syarikat Al-Ijarah Sdn Bhd (Syarikat Al-Ijarah) berjaya mencatatkan PBZT RM16.1 juta berbanding LBZT RM14.8 juta pada TK Pencapaian ini adalah hasil daripada penurunan mendadak pada caj susut nilai dalam tampoh tahun kewangan kepada RM0.3 juta berbanding RM31.1 juta pada TK Penurunan ini adalah akibat daripada caj susut nilai penuh pada aset MIS yang telah dilaksanakan dalam tempoh yang sama tahun lepas. Lain-lain Jumlah PBZT Kumpulan perniagaan modal teroka yang terdiri daripada BIMB Venture Capital Sdn Bhd dan BIMB Musyarakah Satu Sdn Bhd meningkat 25% kepada RM1.5 juta pada TK 2005 berbanding RM1.2 million pada tahun sebelumnya. 29 Property Syarikat Al-Ijarah Sdn Bhd (SAISB) posted a significant improvement to record a PBZT of RM16.1 million from a loss position of RM14.8 million previously. The improvement can be attributed to a drastically lower depreciation charge during the financial year of RM270,000 compared to RM31.1 million previously. The decrease was due to full depreciation charge on MIS assets, which was made during the last corresponding period. Others The combined PBZT of the Venture Capital group BIMB Venture Capital and BIMB Musyarakah Satu Sdn Bhd is RM1.5 million for FY2005, which is an increase from the RM1.2 million PBZT achieved in the prior year. This translates into a PBZT increase of 25%.

30 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 30 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report SEKSYEN KORPORAT CORPORATE SECTION

31 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 31 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 Perbankan Islam, seperti segenap aspek cara hidup Islam, bertujuan memastikan pegangan teguh kepada nilai rohaniah serta sumbangan bermakna kepada matlamat sosioekonomi dan perpaduan ummah. 31 Islamic banking, like all other aspects of the Islamic way of life, is committed to ensuring adherence to spiritual values, rich contributions to socio-economic goals and human brotherhood.

32 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 32 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 LEMBAGA PENGARAH BOARD OF DIRECTORS 32 1 DATO MOHD BAKKE SALLEH 2 DATO NOORAZMAN A. AZIZ 3 DATO DR. ABDUL HALIM HAJI ISMAIL 4 PROF. DR. MUHAMAD MUDA 5 DATUK BURHANUDDIN AHMAD TAJUDIN 6 MOHD ZIN IDRIS 7 DATUK DR. ELIAS MD. KADIR BABA 8 DATUK SITI 9 SALIH AMARAN MASLAMAH OSMAN JAMIAAN

33 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 33 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 DATO MOHD BAKKE SALLEH Pengarah Bukan Bebas Bukan Eksekutif (Berumur 51 tahun warganegara Malaysia) Ijazah Sarjana Muda Ekonomi, London School of Economics and Political Science, Ahli MIA, Felow ICA (England and Wales) Beliau ialah Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif Lembaga Tabung Haji. Sebelum memegang jawatan ini, beliau telah berkhidmat sebagai Pengarah Bahagian Hartanah, Pengurusan Danaharta Nasional Berhad. Beliau pernah berkhidmat dengan beberapa subsidiari Permodalan Nasional Berhad sebagai Pengarah Urusan Federal Power Sdn Bhd dan Syarikat Perumahan Pegawai Kerajaan Sdn Bhd serta sebagai Pengurus Besar Kumpulan Island and Peninsular Berhad. Dilantik sebagai Timbalan Pengerusi BIMB Holdings pada 3 Jun Jawatan Pengarah yang dipegang dalam syarikat awam termasuklah Bank Islam Malaysia Berhad dan Sime UEP Properties Berhad. Beliau juga seorang ahli Suruhanjaya Sekuriti Malaysia. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings, kecuali melalui kedudukan beliau sebagai Pengarah nomini Lembaga Tabung Haji dan tidak pernah disabitkan dengan sebarang pendakwaan. Telah menghadiri enam (6) daripada tujuh (7) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. DATO NOORAZMAN A. AZIZ Pengarah Bukan Bebas Bukan Eksekutif (Berumur 50 tahun warganegara Malaysia) Ijazah Sarjana Muda Kewangan, Louisiana State University (USA) Beliau ialah Pengarah Urusan Bank Islam Malaysia Berhad. Sebelum memegang jawatan sekarang, beliau berkhidmat sebagai Pengarah Urusan dan Ketua Perbankan Korporat di Citibank Malaysia. Sepanjang tempoh perkhidmatannya dengan Citibank selama lebih 20 tahun, beliau pernah dipinjamkan sebagai Ketua Pengarah, Lembaga Perkhidmatan Kewangan Luar Pesisir, Labuan dan juga sebagai Ketua Pegawai Operasi di Bursa Malaysia. Dilantik sebagai Pengarah BIMB Holdings pada 1 April Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings dan tidak pernah disabitkan dengan sebarang pendakwaan. Semenjak pelantikannya ke Lembaga Pengarah, telah menghadiri satu (1) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. 33 DATO MOHD BAKKE SALLEH Non-Independent Non-Executive Director (51 years of age Malaysian) BSc. in Economics, London School of Economics and Political Science, Member of MIA, Fellow of ICA (England and Wales) He is the Group Managing Director & Chief Executive Officer of Lembaga Tabung Haji. Prior to assuming the current position, he was the Director of the Property Division of Pengurusan Danaharta Nasional Berhad. He had previously served with several subsidiaries of Permodalan Nasional Berhad, having served as Managing Director of Federal Power Sdn Bhd and Syarikat Perumahan Pegawai Kerajaan Sdn Bhd and as Group General Manager of Island & Peninsular Berhad. Appointed as Deputy Chairman of BIMB Holdings on 3 June Current directorships in public companies include Bank Islam Malaysia Berhad and Sime UEP Properties Berhad. He is also a member of the Securities Commission Malaysia. DATO NOORAZMAN A. AZIZ Non-Independent Non-Executive Director (50 years of age Malaysian) BSc. in Finance, Louisiana State University (USA) He is the Managing Director of Bank Islam Malaysia Berhad. Prior to assuming the current position, he was the Managing Director and Head of Corporate Banking of Citibank Malaysia Berhad. He was with Citibank for more than 20 years, during which time he was seconded as Director-General of the Labuan Offshore Financial Services Authority and as Chief Operating Officer of Bursa Malaysia. Appointed as a Director of BIMB Holdings on 1 April No family relationship with any director and / or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings, nor has he been charged with any offence. Attended one (1) Board Meeting held in the financial year since his appointment to the Board. No family relationship with any director and/ or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings except by virtue of being a nominee director of Lembaga Tabung Haji, nor has he been charged with any offence. Attended six (6) out of the seven (7) Board Meetings held in the financial year.

34 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 34 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 DATO DR. ABDUL HALIM HAJI ISMAIL Pengarah Bukan Bebas Bukan Eksekutif (Berumur 66 tahun warganegara Malaysia) Ijazah Doktor Falsafah (Ekonomi), University of Oxford (UK) Beliau ialah bekas Pengarah Urusan Bank Islam Malaysia Berhad sebelum persaraannya pada tahun 1994 dan kini berkhidmat sebagai Pengarah Eksekutif BIMB Securities Sdn Bhd. Telah dilantik sebagai Pengarah BIMB Holdings pada 21 Ogos Beliau juga merupakan Pengerusi Mentakab Rubber Company (Malaya) Berhad dan BIMB Unit Trust Management Berhad. Jawatan Pengarah yang dipegang dalam syarikat awam termasuklah Golden Hope Plantations Berhad, BIMB Unit Trust Management Berhad. Dato Dr. Abdul Halim Haji Ismail juga merupakan Pengarah Institut Kefahaman Islam Malaysia (IKIM) serta Ahli Majlis Penasihat Syariah di Suruhanjaya Sekuriti Malaysia dan Bank Negara Malaysia. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings, kecuali melalui kedudukan beliau sebagai Pengarah nomini Permodalan Nasional Berhad dan tidak pernah disabitkan dengan sebarang pendakwaan. Telah menghadiri kesemua tujuh (7) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. PROF. DR. MUHAMAD MUDA Pengarah Bebas Bukan Eksekutif (Berumur 50 tahun warganegara Malaysia) Ijazah Doktor Falsafah (Pentadbiran Perniagaan), University of Manchester (UK) Bertugas sebagai Dekan Fakulti Ekonomi dan Muamalat, Kolej Universiti Islam Malaysia. Sebelum menyandang jawatan ini, beliau adalah Dekan dan Profesor Madya di Fakulti Pengurusan Perniagaan, Universiti Kebangsaan Malaysia. Dilantik sebagai Pengarah BIMB Holdings pada 1 Ogos 1997 serta Pengarah Bank Islam Malaysia Berhad. Bertugas sebagai Pengerusi bagi Jawatankuasa Penamaan & Penilaian dan Jawatankuasa Ganjaran, dan sebagai Ahli Jawatankuasa Audit & Pemeriksaan BIMB Holdings. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings dan tidak pernah disabitkan dengan sebarang pendakwaan. Telah menghadiri lima (5) daripada tujuh (7) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. 34 DATO DR. ABDUL HALIM HAJI ISMAIL Non-Independent Non-Executive Director (66 years of age Malaysian) Ph.D (Economics), University of Oxford (UK) He was the Managing Director of Bank Islam Malaysia Berhad prior to his retirement in 1994, and is currently the Executive Director of BIMB Securities Sdn Bhd. Appointed as a Director of BIMB Holdings on 21 August He is also the Chairman of Mentakab Rubber Company (Malaya) Berhad and BIMB Unit Trust Management Berhad. Current directorships in public companies include Golden Hope Plantations Berhad and BIMB Unit Trust Management Berhad. Dato Dr. Abdul Halim is also a Director of Institut Kefahaman Islam Malaysia (IKIM) and a member of the Shariah Advisory Council at the Securities Commission Malaysia and Bank Negara Malaysia. No family relationship with any director and / or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings except by virtue of being a nominee director of Permodalan Nasional Berhad, nor has he been charged with any offence. Attended all the seven (7) Board Meetings held in the financial year. PROF. DR. MUHAMAD MUDA Independent Non-Executive Director (50 years of age Malaysian) Ph.D (Business Administration), University of Manchester (UK) He is the Dean of the Economics and Muamalat Faculty at Kolej Universiti Islam Malaysia. Prior to assuming the current post, he was the Dean and Associate Professor at Universiti Kebangsaan Malaysia s Faculty of Business Management. Appointed as a Director of BIMB Holdings on 1 August 1997 and is also a Director of Bank Islam Malaysia Berhad. He serves as Chairman of the Nomination and Assessment Committee and Remuneration Committee and is a member of the Audit and Examination Committee of BIMB Holdings. No family relationship with any director and /or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings, nor has he been charged with any offence. Attended five (5) out of the seven (7) Board Meetings held in the financial year.

35 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 35 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 DATUK BURHANUDDIN AHMAD TAJUDIN Pengarah Bukan Bebas Bukan Eksekutif (Berumur 73 tahun warganegara Malaysia) Barrister At Law (Middle Temple) Seorang peguam, berpengalaman sebagai pengamal undangundang selama 28 tahun. Dilantik sebagai Pengarah BIMB Holdings pada 26 April Jawatan Pengarah yang dipegang dalam syarikat awam termasuklah Bank Islam Malaysia Berhad, Permodalan Nasional Berhad, Amanah Saham Nasional Berhad, Universal Trustee (M) Berhad dan Ireka Corporation Berhad. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings, kecuali melalui kedudukan beliau sebagai Pengarah nomini Permodalan Nasional Berhad dan tidak pernah disabitkan dengan sebarang pendakwaan. Telah menghadiri enam (6) daripada tujuh (7) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. MOHD ZIN IDRIS Pengarah Bebas Bukan Eksekutif (Berumur 62 tahun warganegara Malaysia) Sijil Senior Cambridge Beliau pernah bertugas sebagai Pengurus Besar Bahagian Perbankan Komersil, Malayan Banking Berhad sebelum bersara pada tahun 1996 dan kini bertugas sebagai Pengarah Urusan Inter- City MPC (M) Sdn Bhd. Dilantik sebagai Pengarah BIMB Holdings pada 20 September 2002 dan juga merupakan Pengarah Bank Islam Malaysia Berhad. Beliau juga adalah Pengerusi Jawatankuasa Audit & Pemeriksaan dan Ahli bagi kedua-dua Jawatankuasa Penamaan & Penilaian dan Jawatankuasa Ganjaran BIMB Holdings. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings dan tidak pernah disabitkan dengan sebarang pendakwaan. Telah menghadiri kesemua tujuh (7) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. 35 DATUK BURHANUDDIN AHMAD TAJUDIN Non-Independent Non-Executive Director (73 years of age Malaysian) Barrister at Law, Middle Temple He is a lawyer by profession, having practised for 28 years. Appointed as a Director of BIMB Holdings on 26 April Current directorships in public companies include Bank Islam Malaysia Berhad, Permodalan Nasional Berhad, Amanah Saham Nasional Berhad, Universal Trustee (M) Berhad and Ireka Corporation Berhad. No family relationship with any director and /or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings except by virtue of being a nominee director of Permodalan Nasional Berhad, nor has he been charged with any offence. Attended six (6) out of the seven (7) Board Meetings held in the financial year. MOHD ZIN IDRIS Independent Non-Executive Director (62 years of age Malaysian) Senior Cambridge Certificate He was the General Manager, Commercial Banking Division of Malayan Banking Berhad prior to his retirement in 1996 and is currently the Managing Director of Inter-City MPC (M) Sdn Bhd. Appointed as a Director of BIMB Holdings on 20 September 2002 and is also a Director of Bank Islam Malaysia Berhad. He serves as Chairman of the Audit and Examination Committee and is a member of the Nomination and Assessment Committee and the Remuneration Committee of BIMB Holdings. No family relationship with any director and/ or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings, nor has he been charged with any offence. Attended all the seven (7) Board Meetings held in the financial year.

36 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 36 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 DATUK DR. ELIAS MD. KADIR BABA Pengarah Bukan Bebas Bukan Eksekutif (Berumur 57 tahun warganegara Malaysia) Ijazah Doktor Falsafah (Pentadbiran Perniagaan), Irish International University, Felow Chartered Institute of Transport, London Beliau merupakan bekas Pengarah Urusan/Ketua Pegawai Eksekutif Kontena Nasional Berhad. Kini bertugas sebagai Pengarah Eksekutif Kanan Felda Holdings Bhd. Telah dilantik sebagai Pengarah BIMB Holdings pada 16 Februari 2004 dan juga merupakan Pengarah Bank Islam Malaysia Berhad. Beliau ialah Ahli Jawatankuasa Audit dan Pemeriksaan BIMB Holdings. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings, kecuali melalui kedudukan beliau sebagai Pengarah nomini Lembaga Tabung Haji dan tidak pernah disabitkan dengan sebarang pendakwaan. Telah menghadiri kesemua tujuh (7) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. DATUK SITI MASLAMAH OSMAN Pengarah Bebas Bukan Eksekutif (Berumur 58 tahun warganegara Malaysia) Ahli MIA, Fellow CIMA (UK) Bertugas sebagai Akauntan Negara Malaysia sebelum persaraannya pada tahun Dilantik sebagai Pengarah BIMB Holdings pada 16 Februari Beliau menganggotai Jawatankuasa Audit dan Pemeriksaan, Jawatankuasa Penamaan & Penilaian dan Jawatankuasa Ganjaran BIMB Holdings. Jawatan Pengarah yang dipegang dalam syarikat awam termasuklah Bank Islam Malaysia Berhad, Syarikat Takaful Malaysia Berhad, Island & Peninsular Berhad, Avenue Capital Resources Berhad dan Malaysia Airport Holdings Berhad. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings dan tidak pernah disabitkan dengan sebarang pendakwaan. Telah menghadiri kesemua tujuh (7) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. 36 DATUK DR. ELIAS MD. KADIR BABA Non-Independent Non-Executive Director (57 years of age Malaysian) Ph.D in Business Administration, Irish International University, Fellow of the Chartered Institute of Transport, London He was the Managing Director/ Chief Executive Officer of Kontena Nasional Berhad. He is currently the Senior Executive Director of Felda Holdings Bhd. Appointed as a Director of BIMB Holdings on 16 February 2004 and is also a Director of Bank Islam Malaysia Berhad. He serves as a member of the Audit and Examination Committee of BIMB Holdings. No family relationship with any director and/or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings except by virtue of being a nominee director of Lembaga Tabung Haji, nor has he been charged with any offence. Attended all the seven (7) Board Meetings held in the financial year. DATUK SITI MASLAMAH OSMAN Independent Non-Executive Director (58 years of age Malaysian) Member of MIA, Fellow of CIMA (UK) She was the Accountant-General of Malaysia prior to her retirement in Appointed as a Director of BIMB Holdings on 16 February She serves as a member of the Audit and Examination Committee, Nomination and Assessment Committee and Remuneration Committee of BIMB Holdings. Current directorships in public companies include Bank Islam Malaysia Berhad, Syarikat Takaful Malaysia Berhad, Island & Peninsular Berhad, Avenue Capital Resources Berhad and Malaysia Airport Holdings Berhad. No family relationship with any director and/or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings, nor has she been charged with any offence. Attended all the seven (7) Board Meetings held in the financial year.

37 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 37 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 SALIH AMARAN JAMIAAN Pengarah Bukan Bebas Bukan Eksekutif (Berumur 65 tahun warganegara Malaysia) Ijazah Sarjana Pentadbiran Perniagaan, Wharton, Universiti of Pennsylvania (USA) Beliau pernah berkhidmat sebagai Timbalan Setiausaha Bahagian Cukai Kementerian Kewangan Malaysia, Pengurus Besar Bahagian Perbankan Antarabangsa Malayan Banking Berhad, Penasihat Khas (Ekonomi) Urusetia Komanwel di London dan Timbalan Pengarah dan Pemangku Pengarah Bank Pembangunan Islam, Jeddah. Dilantik sebagai Pengarah BIMB Holdings pada 18 Februari 2005 dan juga merupakan Pengarah Bank Islam Malaysia Berhad. Tiada sebarang hubungan kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BIMB Holdings. Tiada konflik kepentingan dengan BIMB Holdings, kecuali melalui kedudukan beliau sebagai Pengarah nomini Permodalan Nasional Berhad dan tidak pernah disabitkan dengan sebarang pendakwaan. Semenjak pelantikannya ke Lembaga, telah menghadiri satu (1) daripada dua (2) Mesyuarat Lembaga Pengarah yang telah diadakan sepanjang tahun kewangan. 37 SALIH AMARAN JAMIAAN Non-Independent Non-Executive Director (65 years of age Malaysian) MBA, Wharton, University of Pennsylvania (USA) He was the former Deputy Secretary to the Malaysian Ministry of Finance s Tax Division, General Manager, International Banking Division of Malayan Banking Berhad; Special Adviser (Economics) of the Commonwealth Secretariat, London, and Deputy Director and Acting Director of the Islamic Development Bank in Jeddah. Appointed as a Director of BIMB Holdings on 18 February 2005 and is also a Director of Bank Islam Malaysia Berhad. No family relationship with any director and/ or major shareholder of BIMB Holdings. There is no conflict of interest with BIMB Holdings except by virtue of being a nominee director of Permodalan Nasional Berhad, nor has he been charged with any offence. Attended one (1) out of two (2) Board Meetings held in the financial year since his appointment to the Board.

38 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 38 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 JAWATANKUASA PENGURUSAN BIMB HOLDINGS BERHAD MANAGEMENT COMMITTEE OF BIMB HOLDINGS BERHAD 1 DATO NOORAZMAN A. AZIZ Pegawai Utama/Principal Officer 2 DATO IDRIS MD TAHIR Ahli /Member 3 NOR IDZAM YA AKUB Ahli /Member 4 MD. AZMI ABU BAKAR Ahli /Member Pengarah Urusan Bank Islam Malaysia Berhad / Managing Director Bank Islam Malaysia Berhad Pengarah Eksekutif (Operasi) BIMB Securities Sdn Bhd/ Executive Director (Operations) BIMB Securities Sdn Bhd Ketua Pegawai Eksekutif BIMB Venture Capital Sdn Bhd / Chief Executive Officer BIMB Venture Capital Sdn Bhd Ketua Pegawai Eksekutif Syarikat Takaful Malaysia Berhad/ Chief Executive Officer Syarikat Takaful Malaysia Berhad 38 SETIAUSAHA-SETIAUSAHA SYARIKAT COMPANY SECRETARIES 1 SAIFUL NIZAM YASIN (LS 08955) 2 NOR HAIMEE ZAKARIA (MIA 11813)

39 BIMB AR Corporate_19Oct2005_FA 10/31/05 3:53 PM Page 39 BIMB HOLDINGS BERHAD Laporan Tahunan 2005 Annual Report 2005 MAJLIS PENGAWASAN SYARIAH BANK ISLAM SHARIAH SUPERVISORY COUNCIL OF BANK ISLAM 1 DR. ABDULLAH HAJI IBRAHIM Pengerusi /Chairman Pensyarah Sambilan Institut Agama Islam Negeri Kedah /Part-time lecturer, Islamic Institute of Kedah 2 USTAZ MOHD BAKIR HAJI MANSOR Ahli /Member Felow Penyelidik Institut Perbankan dan Kewangan Islam Malaysia /Research Fellow, Islamic Banking and Finance Institute Malaysia 3 DR. AHMAD SOBRI SALAMON Ahli /Member Pengerusi Eksekutif PUSRAWI Corporation Sdn Bhd /Executive Chairman, PUSRAWI Corporation Sdn Bhd 4 DATO HAJI DAUD MUHAMMAD Ahli/Member Ketua Hakim Syarie Negeri Kelantan/Shari e Chief of Justice, Kelantan 39 5 DR. YUSOF RAMLI Ahli/Member Pensyarah Pusat Pemikiran dan Kefahaman Islam (CITU) Universiti Teknologi Mara/ Lecturer, Centre of Islamic Thought and Understanding Mara Institute of Technology 6 DR. ASMAK AB. RAHMAN Ahli/Member Pensyarah Jabatan Syariah dan Ekonomi Akademi Pengajian Islam Universiti Malaya / Lecturer, Shariah and Economic Department, Islamic Studies Academy, University of Malaya 7 USTAZ NASRUDIN YAAKUB Setiausaha/Secretary Ketua Jabatan Syariah Bank Islam Malaysia Berhad/ Head of Shariah Department Bank Islam Malaysia Berhad

40 MAKLUMAT KORPORAT CORPORATE INFORMATION Lembaga Pengarah Board of Directors Timbalan Pengerusi / Deputy Chairman Dato Mohd Bakke Salleh Pengarah / Director Prof. Dr. Muhamad Muda Dato Dr. Abdul Halim Haji Ismail Mohd Zin Idris Datuk Siti Maslamah Osman Datuk Dr. Elias Md. Kadir Baba Datuk Burhanuddin Ahmad Tajudin Salih Amaran Jamiaan (Dilantik pada 18 Februari 2005/ Appointed on 18 February 2005) Dato Noorazman A. Aziz (Dilantik pada 1 April 2005/ Appointed on 1 April 2005) Dato Mohd Yusoff Hj. Nasir (Bersara pada 1 Disember 2004 / Retired on 1 December 2004) Khalid Mahmood Bhaimia (Meletak jawatan pada 12 November 2004 / Resigned on 12 November 2004) Majlis Pengawasan Syariah Shariah Supervisory Council Pengerusi / Chairman Dr. Abdullah Hj. Ibrahim (Dilantik pada 1 Julai 2005/Appointed on 1 July 2005) Ahli-ahli / Members Mohd Bakir Haji Mansor Dr. Ahmad Sobri Salamon Dato Haji Daud Muhammad Dr. Yusof Ramli Dr. Asmak Ab. Rahman Setiausaha / Secretary Nasrudin Yaakub 40 Jawatankuasa Pengurusan Management Committee Pegawai Utama / Principal Officer Dato Noorazman A. Aziz Pengarah Urusan Bank Islam Malaysia Berhad Managing Director, Bank Islam Malaysia Berhad Ahli-ahli / Members Dato Idris Md. Tahir Pengarah Eksekutif (Operasi) BIMB Securities Sdn Bhd Executive Director (Operations), BIMB Securities Sdn Bhd Nor Idzam Ya akub Ketua Pegawai Eksekutif BIMB Venture Capital Sdn Bhd Chief Executive Officer, BIMB Venture Capital Sdn Bhd Md. Azmi Abu Bakar Ketua Pegawai Eksekutif Syarikat Takaful Malaysia Berhad (Dilantik pada 15 September 2005) Chief Executive Officer, Syarikat Takaful Malaysia Berhad (Appointed on 15 September 2005) Jawatankuasa Audit & Pemeriksaan Audit & Examination Committee Pengerusi /Chairman Mohd Zin Idris Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Ahli-ahli /Members Prof. Dr. Muhamad Muda Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Datuk Dr. Elias Md. Kadir Baba Pengarah Bukan Bebas Bukan Eksekutif Non-Independent Non-Executive Director Datuk Siti Maslamah Osman Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Dato Mohd Fadzli Yusof Ketua Pegawai Eksekutif Syarikat Takaful Malaysia Berhad (Bersara pada 15 September 2005) Chief Executive Officer, Syarikat Takaful Malaysia Berhad (Resigned on 15 September 2005)

41 Jawatankuasa Penamaan dan Penilaian Nomination and Assessment Committee Pengerusi / Chairman Prof. Dr. Muhamad Muda Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Ahli-ahli / Members Mohd Zin Idris Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Datuk Siti Maslamah Osman Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Jawatankuasa Ganjaran Remuneration Committee Pengerusi / Chairman Prof. Dr. Muhamad Muda Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Ahli-ahli / Members Mohd Zin Idris Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Datuk Siti Maslamah Osman Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director 41 Setiausaha-setiausaha Syarikat Company Secretaries Saiful Nizam Yasin (LS 08955) Nor Haimee Zakaria (MIA 11813) Juruaudit Auditors Pendaftar Saham Share Registrar Symphony Share Registrars Sdn Bhd Level 26, Menara Multi-Purpose Capital Square No. 8, Jalan Munshi Abdullah Kuala Lumpur Tel : Fax: KPMG Desa Megat & Co. (AF 0759) Wisma KPMG Jalan Dungun, Damansara Heights Kuala Lumpur Pejabat Berdaftar Registered Office Penyenaraian Bursa Saham Stock Exchange Listing Papan Utama Bursa Malaysia/ Main Board of Bursa Malaysia 16 September th Floor, Darul Takaful Jalan Sultan Ismail Kuala Lumpur Tel : Fax: Laman web/ website:

42 PENYATA TADBIR URUS KORPORAT STATEMENT OF CORPORATE GOVERNANCE Lembaga Pengarah BIMB Holdings Berhad ( BHB atau Syarikat ) mengakui kepentingan tadbir urus korporat seperti yang terkandung dalam Kod Tadbir Urus Korporat Malaysia dalam melaksanakan tanggungjawab untuk meningkatkan nilai pemegang saham dan melindungi kepentingan semua pihak ke arah meningkatkan kemajuan perniagaan dan kebertanggungjawapan Syarikat. Dengan berlandaskan andaian tersebut, Lembaga Pengarah secara berterusan akan memastikan piawaian tertinggi dalam tadbir urus korporat diamalkan di peringkat Kumpulan. I. Lembaga Pengarah 1. Komposisi dan Keseimbangan Lembaga Pengarah Berdasarkan kepada Tataurusan Persatuan Syarikat dan sehingga ditetapkan oleh Syarikat pada mesyuarat tahunannya, Syarikat dibenarkan melantik sehingga lima belas (15) orang Pengarah. Pada tarikh Laporan Tahunan ini, Lembaga Pengarah adalah dianggotai oleh sembilan (9) orang Pengarah; tiga (3) daripada mereka merupakan pengarah bebas bukan eksekutif mengikut takrif Bahagian 1.01 Keperluan Penyenaraian Bursa Malaysia Securities Berhad, yang mensyaratkan sekurang-kurangnya satu-per-tiga (1/3) keahlian Lembaga Pengarah hendaklah terdiri daripada pengarah bebas dan bukan eksekutif. Syarikat dipimpin oleh sebuah Lembaga Pengarah yang kukuh lagi berpengalaman diterajui oleh Pengerusi yang merupakan seorang pengarah bukan eksekutif. Terdapat pembahagian tugas yang jelas antara Lembaga Pengarah dan Pengurusan. Lembaga Pengarah bertanggungjawab menetapkan rangka kerja dan dasar-dasar yang membolehkan Syarikat dan Kumpulan sepatutnya beroperasi manakala Pengurusan pula bertanggungjawab dalam 42 The Board of Directors ( the Board ) of BIMB Holdings Berhad ( BHB or the Company ) recognizes the importance of corporate governance as set out in the Malaysian Code on Corporate Governance ( the Code ) in discharging its responsibilities to enhance shareholders value and safeguard the interests of other stakeholders towards enhancing business prosperity and corporate accountability. On this premise, the Board constantly strives to ensure high standards of corporate governance are practised throughout the Group. I. Board of Directors 1. Board Composition and Balance Pursuant to the Company s Articles of Association and until otherwise determined by the Company at its general meeting, the Company can appoint up to a maximum of fifteen (15) directors. As at the date of this Annual Report, the Board comprises nine (9) directors; 3 of whom are independent non-executive directors within the meaning of Chapter 1.01 of the Listing Requirements of Bursa Malaysia Securities Berhad which requires that at least one third of the board should be independent and non-executive. The Company is led by a strong and experienced Board under a Chairman who is a nonexecutive director. There is a clear division of duties between the Board and Management. While the Board is responsible for creating the framework and policies within which the Company and the Group should be operating, the Management is accountable for the execution of the enabling policies and attainment of the Group s corporate objectives. Towards this end, the Board exercises independent supervision of the Management and bears the overall accountability for the performance of the Group and compliance with the principles of corporate governance.

43 pelaksanaan dasar-dasar tersebut dan pencapaian objektif korporat Kumpulan. Untuk mencapai tujuan tersebut, Lembaga Pengarah bertindak secara bebas dalam mengawal setia pihak Pengurusan serta secara keseluruhan bertanggungjawab terhadap prestasi Kumpulan dan pematuhan kepada prinsip urus tadbir korporat. Lembaga Pengarah berkongsi kemahiran dan kelayakan yang tinggi. Mereka terdiri dari individu berkaliber tinggi dalam perbankan dan kewangan, perakaunan, ekonomi dan perundangan, membawa bersama mereka pengetahuan yang tidak ternilai, kepakaran dan perspektif untuk operasi perniagaan Kumpulan. Profil ringkas setiap pengarah Syarikat dinyatakan di mukasurat 32 hingga 37 Laporan Tahunan ini. Lembaga Pengarah percaya bahawa tadbir urus syarikat yang berkesan adalah berlandaskan kepada tiga asas penting, iaitu kebebasan, kebertanggungjawapan dan ketelusan. Bagi maksud ini, Lembaga Pengarah mempunyai para pengarah yang mampu bertindak secara bebas dan mengenengahkan pandangan dan pendapat mereka secara bebas dan tidak terikat dengan sebarang pengaruh. Lebih penting lagi, Lembaga Pengarah mempunyai ahli yang antaranya terdiri daripada pengarah bebas bukan eksekutif yang tidak terikat dengan pengurusan dan pemegang saham utama Syarikat. Mereka juga bebas dari sebarang kaitan perniagaan atau perhubungan lain yang boleh menjejaskan dengan ketara pelaksanaan objektif dan pertimbangan mereka. 2. Mesyuarat Lembaga Pengarah Mesyuarat-mesyuarat Lembaga Pengarah adalah dijadualkan dipermulaan tahun kalendar baru untuk membolehkan pengarah-pengarah merancang dan menyelaraskan mesyuarat pada tahun tersebut ke dalam jadual masing-masing. Lembaga Pengarah mengadakan mesyuarat yang dijadualkan sekurang-kurangnya empat (4) kali setahun, dengan mesyuaratmesyuarat tambahan bagi perkara tertentu diadakan mengikut keperluan. Dalam tahun kewangan ini, semua pengarah telah mematuhi keperluan kehadiran seperti mana ditetapkan oleh Bank Negara Malaysia (BNM) dan Bursa Malaysia. Berikut disenaraikan rekod kehadiran pengarah-pengarah ke mesyuarat Lembaga Pengarah: 43 The Board of Directors has a broad range of skills and credentials. They are individuals of high calibre with backgrounds in banking and finance, accounting, economics and the legal field, bringing with them invaluable knowledge, expertise and perspectives to the Group s business operations. A brief profile of each of the directors of the Company is provided from page 32 to 37 of the Annual Report. The Board believes that effective corporate governance is premised on three importance cornerstones, namely independence, accountability and transparency. For this reason, the Board has directors who are able to act independently and express their views and opinions unencumbered and free from any influence. More importantly, the Board has, as Members, independent nonexecutive directors who are independent from management and major shareholders of the Company. The independent directors are also free from any business or other relationships that could materially interfere with the exercise of their objective and independent judgement. 2. Board Meetings Board meetings are scheduled in advance, at the beginning of a new calendar year to enable directors to plan ahead and fit the year s meetings into their own schedules. The Board has at least four (4) regularly scheduled meetings annually with additional meetings for particular matters, convened as and when required. For the year under review, all directors complied with the attendance requirements as stipulated by Bank Negara Malaysia (BNM) and Bursa Malaysia. The following is a record of attendance of the Board meetings by the Board of Directors:

44 PENYATA TADBIR URUS KORPORAT STATEMENT OF CORPORATE GOVERNANCE Pengarah Jawatan Kehadiran di Mesyuarat* Director Designation Attendance at Meetings* Dato Mohd Bakke Salleh Timbalan Pengerusi 6/7 Deputy Chairman Pengarah Bukan Bebas Bukan Eksekutif Non-Independent Non-Executive Director Dato Dr. Abdul Halim Haji Ismail Pengarah Bukan Bebas Bukan Eksekutif 7/7 Non-Independent Non-Executive Director Prof. Dr. Muhamad Muda Pengarah Bebas Bukan Eksekutif 5/7 Independent Non-Executive Director Mohd Zin Idris Pengarah Bebas Bukan Eksekutif 7/7 Independent Non-Executive Director Datuk Dr. Elias Md. Kadir Baba Pengarah Bukan Bebas Bukan Eksekutif 7/7 Non-Independent Non-Executive Director Datuk Siti Maslamah Osman Pengarah Bebas Bukan Eksekutif 7/7 Independent Non-Executive Director 44 Datuk Burhanuddin Ahmad Tajudin Pengarah Bukan Bebas Bukan Eksekutif 6/7 Non-Independent Non-Executive Director Salih Amaran Jamiaan Pengarah Bukan Bebas Bukan Eksekutif 1/2 (Dilantik ke Lembaga Pengarah pada 18 Februari 2005) Non-Independent Non-Executive Director (Appointed to the Board on 18 February 2005) Dato Noorazman A. Aziz Pengarah Bukan Bebas Bukan Eksekutif 1/1 (Dilantik ke Lembaga Pengarah pada 1 April 2005) Non-Independent Non-Executive Director (Appointed to the Board on 1 April 2005) Dato Mohd Yusoff Haji Nasir Pengerusi 5/5 (Bersara dari Lembaga Pengarah pada 1 Disember 2004) Chairman (Retired from the Board on 1 December 2004) Khalid Mahmood Bhaimia Pengarah Bukan Bebas Bukan Eksekutif 1/4 (Meletak jawatan dari Lembaga Pengarah pada 12 November 2004) Non-Independent Non-Executive Director (Resigned from the Board on 12 November 2004) * Menunjukkan bilangan mesyuarat yang diadakan semasa pengarah memegang jawatan * Reflects the number of meetings held during the time the Directors held office

45 3. Pelantikan ke Lembaga Pengarah Lembaga Pengarah telah mengamalkan prosidur-prosidur yang formal dan telus bagi pelantikan ahli baru. Jawatankuasa Penamaan dan Penilaian dipertanggungjawabkan dengan tugas khusus untuk mengenalpasti dan membuat perakuan berhubung pelantikan pengarah baru ke Lembaga Pengarah Syarikat dan syarikat-syarikat subsidiarinya, setelah mengambil kira kemahiran, pengalaman dan kualiti yang lain dikalangan mereka yang bakal dilantik. 4. Pemilikan Semula Pengarah Menurut Tataurusan Persatuan Syarikat, sekurang-kurangnya satu-per-tiga (1/3) dari jumlah pengarah dikehendaki bersara setiap tahun kewangan mengikut giliran dan boleh menawarkan diri untuk dilantik semula pada Mesyuarat Agung Tahunan. Pengarah yang dilantik oleh Lembaga Pengarah untuk memenuhi kekosongan biasa tertakluk kepada pemilihan semula oleh pemegang saham pada Mesyuarat Agung Tahunan yang pertama selepas pelantikan mereka. Menurut Seksyen 129(2) Akta Syarikat 1965, pengarah yang berumur lebih daripada tujuh puluh (70) tahun, bersara pada setiap Mesyuarat Agung Tahunan dan layak untuk dilantik semula untuk memegang jawatan sehingga Mesyuarat Agung Tahunan yang akan datang. 5. Latihan Pengarah Semua Pengarah telah berjaya menamatkan Program Akreditasi Mandatori sebagaimana yang ditetapkan oleh Bursa Malaysia. Sebagai tambahan, pelbagai seminar dan persidangan meliputi pelbagai bidang berkaitan dengan perbankan dan kewangan, tanggungjawab pengarah dan isu-isu tadbir urus syarikat, yang dianjurkan oleh pihak-pihak berkuasa berkenaan dimaklumkan kepada pengarahpengarah untuk membolehkan mereka menyertai seminar dan persidangan tersebut. Pengarah-pengarah digalakkan untuk menghadiri program pendidikan dan seminar yang berterusan untuk membolehkan mereka mengikuti perkembangan dalam pasaran Appointments to the Board The Board has put in place formal and transparent procedures for the appointments of new members to the Board. The Nomination and Assessment Committee is entrusted with the specific tasks of identifying and making recommendations on the appointments of new directors to the Board of the Company and its subsidiaries, after taking into account the required mix of skills, experience and other qualities of the appointee. 4. Re-election of Directors In accordance with the Company s Articles of Association, at least one third (1/3) of the directors are required to retire by rotation each financial year and can offer themselves for re-election at the Annual General Meeting. Directors who are appointed by the Board to fill a casual vacancy are subject to election by shareholders at the first Annual General Meeting following their appointment. Pursuant to Section 129(2) of the Companies Act 1965, directors who are over the age of seventy (70) years, retire at every Annual General Meeting and shall be eligible for re-appointment to hold office until the next Annual General Meeting. 5. Directors Training All Directors have successfully completed the Mandatory Accreditation Programme in the manner prescribed by Bursa Malaysia. In addition, seminars and conferences organized by the relevant regulatory authorities on areas relevant to banking and finance, Directors responsibilities and corporate governance issues are made known to the Directors for their participation in such seminars and conferences. Directors are encouraged to attend continuous education programmes and seminars to keep them abreast with developments in the market place.

46 PENYATA TADBIR URUS KORPORAT STATEMENT OF CORPORATE GOVERNANCE 6. Ganjaran Pengarah Pengarah bukan eksekutif dibayar yuran bulanan pengarah dan yuran tersebut diluluskan oleh pemegang saham di Mesyuarat Agung Tahunan. Maklumat terperinci mengenai ganjaran Pengarah bagi tahun berakhir 30 Jun 2005 dinyatakan di mukasurat 115 dan 116 Laporan Tahunan ini. 7. Akses kepada dan Bekalan Maklumat serta Nasihat Berkualiti Pengarah mempunyai akses penuh dan tidak terbatas kepada semua maklumat dalam Syarikat dan kepada nasihat dan perkhidmatan Setiausaha Syarikat yang bertanggungjawab memastikan supaya prosidur mengenai mesyuarat Lembaga Pengarah dan peraturan-peraturan yang berkaitan dipatuhi. Lembaga Pengarah juga boleh mendapatkan nasihat profesional luar jika perlu. Kertas-kertas perbincangan pengarah yang mengandungi maklumat kemaskini ke atas operasi kewangan dan pembangunan korporat diedarkan pada masa yang tepat sebelum Mesyuarat Lembaga Pengarah, bagi membolehkan mereka mengambil bahagian dalam perbincangan terhadap isu yang dibangkitkan semasa mesyuarat berkenaan dan bagi membuat keputusan termaklum. II. Jawatankuasa-Jawatankuasa Lembaga Pengarah Lembaga Pengarah telah menyerahkah sebahagian daripada tanggungjawabnya kepada Jawatankuasa Lembaga Pengarah, yang beroperasi dalam lingkungan terma rujukan yang khusus. Jawatankuasajawatankuasa tersebut adalah: Directors Remuneration Non-executive directors are paid directors fees and these are approved by shareholders at the Annual General Meeting. Details of the remuneration for Directors for the year ended 30 June 2005 are set out on page 115 and 116 of this Annual Report. 7. Access to and Supply of Quality Information and Advice Directors have full, unrestricted access to all information within the Company and to the advice and services of the Company Secretary who is responsible for ensuring that Board meeting procedures are followed and that applicable rules and regulations are complied with. The Board may also seek external professional advice as and when necessary. Board papers providing updates on operational, financial and corporate developments are circulated on a timely basis prior to Board meetings to enable them to participate in the deliberations of the issues to be raised at the meetings and to make informed decisions. II. Board Committees The Board has delegated certain responsibilities to Board committees, which operate within clearly defined terms of reference. These committees are:

47 1. Jawatankuasa Penamaan dan Penilaian Sebagai mematuhi Keperluan Penyenaraian Bursa Malaysia, satu Jawatankuasa Penamaan dan Penilaian telah ditubuhkan oleh Lembaga Pengarah pada 1 Oktober Jawatankuasa ini dianggotai keseluruhannya oleh pengarah-pengarah bebas bukan eksekutif. Ahli-ahli sehingga ke tarikh Laporan Tahunan ini adalah: i) Prof. Dr. Muhamad Muda (Pengarah Bebas Bukan Eksekutif) Pengerusi ii) Mohd Zin Idris (Pengarah Bebas Bukan Eksekutif) iii) Datuk Siti Maslamah Osman (Pengarah Bebas Bukan Eksekutif) Jawatankuasa ini diberi kuasa mengikut bidang tugas yang telah disusun-atur supaya konsisten dengan amalan terbaik Kod Tadbir Urus Korporat Malaysia dan perakuan-perakuan BNM. Tanggungjawab utama Jawatankuasa ialah untuk menilai, menimbang dan memperakukan kepada Lembaga Pengarah calon-calon bagi pelantikan pengarah dalam Kumpulan. Lain-lain tanggungjawab Jawatankuasa ini adalah seperti berikut: Memperakukan kepada Lembaga Pengarah perkara-perkara mengenai pembaharuan semula atau lanjutan pelantikan pengarah, dan pelantikan semula pengarah-pengarah yang bersara Memperakukan kepada Lembaga Pengarah berkaitan dengan pengarah-pengarah untuk memegang jawatan pengarah dalam Jawatankuasa Lembaga Pengarah Memperakukan kepada Lembaga Pengarah perkara-perkara mengenai pelantikan pengarah pengarah eksekutif serta pelantikan mengisi jawatan-jawatan pengurusan kanan bagi keseluruhan Kumpulan Melaksanakan kajian tahunan dan menilai prestasi Lembaga Pengarah secara keseluruhan dan jawatankuasa-jawatankuasanya serta sumbangan setiap pengarah secara individu Nomination and Assessment Committee In compliance with the Listing Requirements of Bursa Malaysia, a Nomination and Assessment Committee was established by the Board on 1 October The Committee comprises entirely independent non-executive directors. The members as at the date of this Annual Report are: i) Prof. Dr Muhamad Muda (Independent Non-Executive Director) Chairman ii) Mohd Zin Idris (Independent Non-Executive Director) iii) Datuk Siti Maslamah Osman (Independent Non-Executive Director) The Committee is empowered by its terms of reference, which have been drawn up to be consistent with the best practices of the Code and BNM s recommendations. The Committee s primary responsibilities are to assess, consider and recommend to the Board candidates for directorships to be filled in the Group. The other responsibilities of the Committee are as follows: To make recommendations to the Board on matters of renewal or extension of directors appointments and reappointments of retiring directors To recommend to the Board of Directors to fill the seats on the Board Committee To make recommendations to the Board on matters of appointments of executive directors as well as appointments of senior management posts to be filled in across the Group To annually review and assess the performance of the Board as a whole and its various standing committees as well as the contribution of each individual director

48 PENYATA TADBIR URUS KORPORAT STATEMENT OF CORPORATE GOVERNANCE 2. Jawatankuasa Ganjaran Sebagai mematuhi Keperluan Penyenaraian Bursa Malaysia, Lembaga Pengarah telah menubuhkan satu Jawatankuasa Ganjaran pada 1 Oktober Jawatankuasa ini dianggotai keseluruhannya oleh pengarah-pengarah bebas bukan eksekutif. Ahli-ahli Jawatankuasa sehingga tarikh Laporan Tahunan ini adalah: i) Prof. Dr. Muhamad Muda (Pengarah Bebas Bukan Eksekutif) Pengerusi ii) Mohd Zin Idris (Pengarah Bebas Bukan Eksekutif) iii) Datuk Siti Maslamah Osman (Pengarah Bebas Bukan Eksekutif) Peranan Jawatankuasa ini ialah untuk membantu dan menyokong tanggungjawab Lembaga Pengarah berhubung dengan pakej ganjaran bagi pengarah Syarikat dalam semua bentuk. Jawatankuasa juga bertanggungjawab menilai dan memperakukan kepada Lembaga Pengarah: Semua bentuk pakej ganjaran bagi pengarah eksekutif, dengan menggunakan nasihat professional lain, jika perlu Ganjaran bagi pengarah bukan eksekutif, yang mana adalah merupakan keputusan Lembaga Pengarah secara keseluruhan, kecuali di mana ganjaran melibatkan mana-mana ahli atau Ahli-ahli Jawatankuasa ini Remuneration Committee In compliance with the Listing Requirements of Bursa Malaysia, the Board established a Remuneration Committee on 1 October The Committee comprises entirely independent non-executive directors. The members as at the date of this Annual Report are: i) Prof. Dr Muhamad Muda (Independent Non-Executive Director) Chairman ii) Mohd Zin Idris (Independent Non-Executive Director) iii) Datuk Siti Maslamah Osman (Independent Non-Executive Director) The Committee s role is to assist and support the Board s responsibility in respect of remuneration packages of directors of the Company in all forms. The Committee is also responsible for assessing and recommending to the Board: The remuneration package of executive directors in all its forms, using other independent professional advice, if necessary The remuneration of non-executive directors, which shall be a decision of the Board as a whole, save and except where the remuneration is in respect of any member or members of this Committee

49 3. Jawatankuasa Audit dan Pemeriksaan Keahlian Jawatankuasa Audit dan Pemeriksaan ( Jawatankuasa ), sehingga ke tarikh Laporan Tahunan ini, terdiri daripada empat (4) pengarah bukan eksekutif, (yang mana tiga (3) daripada mereka, termasuk Pengerusi, adalah pengarah bebas). Keahlian Jawatankuasa dan maklumat kehadiran setiap ahli ke mesyuarat Jawatankuasa di sepanjang tahun kewangan ini adalah seperti berikut: Nama Ahli Kehadiran di Mesyuarat Mohd. Zin Idris 5/5 Pengerusi/Pengarah Bebas Bukan Eksekutif Profesor Dr. Muhamad Muda 3/5 Pengarah Bebas Bukan Eksekutif Datuk Dr. Elias Md. Kadir Baba 5/5 Pengarah Bukan Bebas Bukan Eksekutif Datuk Siti Maslamah Osman 5/5 Pengarah Bebas Bukan Eksekutif Bidangkuasa Rujukan Bidangkuasa Rujukan Jawatankuasa adalah seperti berikut: Keahlian Keahlian Jawatankuasa hendaklah terdiri daripada sekurang-kurangnya tiga (3) orang pengarah bukan eksekutif, dengan majoritinya hendaklah terdiri daripada pengarah bebas bukan eksekutif. Pengerusi Jawatankuasa hendaklah merupakan pengarah bebas bukan eksekutif Audit and Examination Committee The Audit and Examination Committee ( Committee ) comprises as at the date of this Annual Report four (4) non-executive directors (three (3) of whom, including the Chairman, are independent directors). The composition of the Committee and details of attendance of each member at Committee meetings during the period under review are as follows: Name of Member Attendance at Meetings Mohd. Zin Idris 5/5 Chairman/Independent Non-Executive Director Professor Dr. Muhamad Muda 3/5 Independent Non-Executive Director Datuk Dr. Elias Md. Kadir Baba 5/5 Non-Independent Non-Executive Director Datuk Siti Maslamah Osman 5/5 Independent Non-Executive Director Terms Of Reference The terms of reference of the Committee are as follows: Composition The Committee shall comprise at least three (3) non-executive directors, a majority of whom shall be independent non-executive directors. The Chairman shall be an independent nonexecutive director.

50 PENYATA TADBIR URUS KORPORAT STATEMENT OF CORPORATE GOVERNANCE Sekurang-kurangnya seorang (1) ahli hendaklah ahli Institut Akauntan Malaysia atau memiliki kelayakan-kelayakan yang sama sebagaimana disyaratkan dalam Bahagian I atau Bahagian II Jadual Pertama Akta Perakaunan 1967, dengan sekurang-kurangnya tiga (3) tahun pengalaman pekerjaan. Jawatankuasa ini tidak boleh mengandungi pengarah gilir sebagai ahli. Mesyuarat Sekurang-kurangnya empat (4) mesyuarat perlu diadakan setiap tahun dengan mesyuarat tambahan untuk perkara-perkara tertentu diadakan jika perlu. Juruaudit luar boleh meminta mesyuarat diadakan sekiranya mereka fikirkan perlu. Kuorom adalah terdiri dari dua (2) orang, dengan majoriti merupakan pengarah bebas bukan eksekutif. Pengarah Urusan, Pengurus Kewangan Kumpulan dan Ketua Juruaudit Dalam menghadiri mesyuarat atas jemputan Jawatankuasa. Ahli-ahli Lembaga Pengarah yang lain mempunyai hak untuk hadir. Jawatankuasa akan bermesyuarat dengan juruaudit luar tanpa kehadiran ahli Lembaga Pengarah Eksekutif sekurangkurangnya sekali setahun. Setiausaha Syarikat BIMB Holdings Berhad bertindak sebagai Setiausaha Jawatankuasa. Autoriti Jawatankuasa diberikan kuasa oleh Lembaga Pengarah untuk mengkaji semula dan menyiasat sebarang aktiviti yang termasuk di bawah bidang tugasnya. Lembaga Pengarah juga memberikan kuasa kepada Jawatankuasa untuk mendapatkan sebarang maklumat yang diperlukan dari mana-mana kakitangan dan semua kakitangan diarah supaya memberikan kerjasama mereka berhubung dengan sebarang permintaan dari Jawatankuasa. 50 At least one (1) member shall be a member of the Malaysian Institute of Accountants or possess similar qualifications as prescribed in Part I or Part II of the First Schedule of the Accountants Act 1967, with at least three (3) years of work experience. The Committee shall not consist of any alternate director of the Company. Meetings Meetings shall be held not less than four (4) times a year with additional meetings for particular matters convened as and when required. The external auditors may request a meeting if they consider that one is necessary. The quorum shall be 2, the majority of whom shall be independent non-executive directors. The Managing Director, the Group Finance Manager and Chief Internal Auditor shall attend meetings by invitation of the Committee. Other Board members shall have the right of attendance. At least once a year, the Committee shall meet with the external auditors without Executive Board members present. The Company Secretary of BIMB Holdings Berhad shall act as Secretary to the Committee. Authority The Committee is authorized by the Board to review and investigate any activity within its terms of reference. It is also authorized by the Board to seek any information it requires from any employee and all employees are directed to co-operate with any request made by the Committee.

51 Jawatankuasa diberi kuasa untuk mendapatkan nasihat profesional bebas dan memperolehi kehadiran orang luar yang mempunyai pengalaman dan kepakaran bersesuaian, sekiranya dirasakan perlu. Tugas dan Tanggungjawab Jawatankuasa akan membantu Lembaga Pengarah memenuhi tanggungjawab fidusiarinya sebagaimana yang digariskan dalam polisi perakaunan dan amalan pelaporan Syarikat dan subsidiari-subsidiarinya, serta kecukupan pengauditan yang berkaitan dengannya. Tugas dan tanggungjawab utama Jawatankuasa adalah seperti berikut: a) Mengkaji skop rancangan audit bagi kedua-dua juruaudit dalam dan juruaudit luar. b) Mengkaji semula keputusan suku tahunan, setengah tahun dan penyata kewangan tahunan, dengan tumpuan khusus kepada sebarang perubahan dasar dan amalan perakaunan, peristiwa penting dan luar biasa, serta pematuhan terhadap piawai perakaunan dan keperluan-keperluan perundangan lain. c) Mengkaji semula kecukupan skop, fungsi-fungsi dan sumber audit dalaman serta memastikan supaya mereka mempunyai tenaga manusia secukupnya untuk melaksanakan tugas mereka. d) Untuk mengkaji program audit dalam, proses atau penyiasatan yang dijalankan dan sama ada tindakan yang sewajarnya sepertimana yang diperakukan juruaudit dalam telah diambil tindakan khususnya mengenai program audit dalaman, proses atau penyiasatan yang dijalankan. e) Mengkaji semula dan melaporkan kepada Lembaga Pengarah sebarang urus niaga penting yang bukan di dalam perjalanan biasa perniagaan, khususnya berhubung dengan urus niaga pihak berkaitan dan percanggahan kepentingan yang mungkin timbul dalam Syarikat atau Kumpulan. f) Memperakukan kepada Lembaga Pengarah pelantikan juruaudit luar dan kadar bayaran yuran audit yang berkaitan. 51 The Committee is authorized to obtain independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary. Duties and Responsibilities The Committee shall assist the Board in fulfilling its fiduciary responsibilities as to accounting policies and reporting practices of the Company and its subsidiaries and the sufficiency of auditing relating thereto. The following are the main duties and responsibilities of the Committee: a) To review the scope of audit plans of both the internal and external auditors. b) To review the quarterly results, half-yearly and annual financial statements, focusing particularly on the changes in accounting policies and practice, significant and unusual events, as well as compliance with accounting standards and other legal requirements. c) To review the adequacy of the scope, functions and resources of the internal audit function and ensure that they have the necessary manpower to carry out their work. d) To review the internal audit programmes, processes or investigations undertaken and whether or not appropriate action has been taken on the recommendations of the internal auditors, particularly on the internal audit programmes, processes or investigations undertaken. e) To review and report to the Board any significant transactions which are not within the normal course of business, particularly on related party transactions and potential conflicts of interest that may arise within the Company or Group. f) To recommend to the Board the appointment of the external auditors and audit fees payable thereof.

52 PENYATA TADBIR URUS KORPORAT STATEMENT OF CORPORATE GOVERNANCE g) Membuat perakuan yang sewajarnya kepada Lembaga Pengarah berkaitan dengan perletakan jawatan atau pemberhentian juruaudit luar. h) Mengkaji semula surat juruaudit luar kepada Pengurusan dan maklumbalas Pengurusan, berkaitan dengan kelemahan prosidur perakaunan dan kawalan dalaman, serta mengemukakan perakuan sewajarnya kepada Lembaga Pengarah. i) Mengkaji semula laporan audit subsidiari Syarikat yang terletak di bawah bidang kuasa Jawatankuasa, dan fungsi ini dilaksanakan oleh Jawatankuasa dengan kesetaraan Lembaga Pengarah subsidiari yang berkenaan. Prosidur Pelaporan Minit Mesyuarat Jawatankuasa dibentangkan kepada Lembaga Pengarah untuk makluman dan kemaskini. Laporan audit terperinci oleh juruaudit dalam dan maklumbalas pihak Pengurusan yang berkenaan akan diedarkan kepada ahli Jawatankuasa sebelum Mesyuarat Jawatankuasa yang akan membincangkan laporan tersebut. Aktiviti Sepanjang Tahun Jawatankuasa telah bermesyuarat sebagaimana dijadualkan, dengan Notis Mesyuarat dikeluarkan dan agenda dirancang, supaya isu-isu yang dibangkitkan dalam laporan audit oleh Juruaudit Dalam atau mengenai penyata kewangan, dapat dibincang secara menyeluruh. Selaras dengan bidang tugas Jawatankuasa, aktiviti-aktiviti berikut telah dilaksanakan oleh Jawatankuasa disepanjang tahun kewangan: a) Kajian semula penyata kewangan suku-tahun, setengah-tahun dan tahunan sebelum dikemukakan untuk pertimbangan dan kelulusan Lembaga Pengarah. 52 g) To make appropriate recommendations to the Board on matters of resignation or dismissal of external auditors. h) To review the external auditors letter to the Management and the Management s response on the weaknesses of internal accounting procedures and controls and make recommendations to the Board. i) To review audit reports of the Company s subsidiaries which fall under the jurisdiction of the Committee and that function shall be performed by the Committee in coordination with the Boards of Directors of the subsidiaries. Reporting Procedures The minutes of the Committee Meeting shall be tabled to the Board for their information and update. Detailed audit reports by Internal Auditors and the respective Management s response are circulated to members of the Committee before each Committee Meeting, at which the said reports are tabled. Activities During the Year The Committee met at scheduled times, with due notice of meetings issued and with agendas planned so that issues raised in the audit reports by the Internal Auditors or in respect of financial statements were deliberated in a focused manner. In line with the terms of reference of the Committee, the following activities were carried out by the the Committee during the financial year: a) Review of the Group s quarterly, half-yearly and twelve-monthly financial statements prior to the submission to the Board for consideration and approval.

53 b) Kajian semula dan kelulusan skop kerja juruaudit luar dan rancangan audit bagi tahun kajian. c) Kajian semula dan kelulusan rancangan audit tahunan Jabatan Audit Dalam, termasuk keperluan sumber dan latihan. d) Kajian semula metodologi Jabatan Audit Dalam dalam menilai dan penarafan paras risiko pelbagai bidang audit dan memastikan penegasan diberi kepada bidang berisiko tinggi dan kritikal. e) Kajian semula laporan audit untuk Kumpulan yang disediakan oleh kedua-dua juruaudit luar dan Jabatan Audit Dalam, penemuan mereka serta maklumbalas pengurusan terhadapnya. f) Pemantauan kemajuan Jabatan Audit Dalam dalam menyediakan rancangan auditnya dan menilai prestasi Jabatan tersebut. III. Akauntabiliti dan Audit 1. Pelaporan Kewangan Lembaga Pengarah adalah bertanggungjawab untuk mengemukakan satu penilaian operasi dan prospek Syarikat dan Kumpulan yang seimbang dan komprehensif pada akhir setiap tahun kewangan, terutamanya melalui penyata kewangan tahunan, pengumuman hasil sukutahun dan setengah-tahun kepada pemegang saham, serta Penyata Pengerusi dan kajian semula operasi dalam Laporan Tahunan. Jawatankuasa Audit dan Pemeriksaan memberikan bantuan dengan memeriksa dan menilai dengan rapi maklumat yang akan didedahkan, bagi memastikan ketepatan, kecukupan, ketelusan dan kesempurnaannya. Penyata Pengarah selaras dengan Seksyen 169 Akta Syarikat 1965 dinyatakan di mukasurat 75 Laporan Tahunan ini. 53 b) Review and approval of the external auditors scope of work and audit plan for the year. c) Review and approval of the Internal Audit Department s annual audit plan, including its resource and training needs. d) Review of the Internal Audit Department s methodology in assessing and rating the risk levels of the various auditable areas and ensuring that audit emphasis was given to high and critical risk areas. e) Review of the audit report for the Group prepared by both the external auditors and Internal Audit Department, their findings and the Management responses thereto. f) Monitoring of the progress of the Internal Audit Department in completing its audit plan and assessing the performance of the Department. III. Accountability and Audit 1. Financial Reporting The Board takes responsibility for presenting a balanced and comprehensive assessment of the Company s and the Group s operations and prospects at the end of each financial year primarily through annual financial statements, quarterly and half-yearly announcements of results to shareholders as well as the Chairman s Statement and review of operations in the Annual Report. The Audit and Examination Committee assists by scrutinizing the information to be disclosed, to ensure accuracy, adequacy, transparency and completeness. The Statement by Directors pursuant to Section 169 of the Companies Act 1965 is set out on page 75 of this Annual Report.

54 PENYATA TADBIR URUS KORPORAT STATEMENT OF CORPORATE GOVERNANCE 2. Fungsi Audit Dalam Syarikat mempunyai sebuah Jabatan Audit Dalam, yang mana fungsi pengauditannya adalah bebas dari aktiviti atau operasi mereka yang diaudit. Jabatan ini melaksanakan pengauditan unit operasi Kumpulan serta juga subsidiari di dalam Kumpulan, berasaskan rancangan audit yang telah dikaji dan diluluskan oleh Jawatankuasa. Rancangan audit tersebut meliputi kajian kecukupan pengurusan risiko, kawalan operasi, pematuhan kepada undang-undang dan peraturan, kualiti aset, kecekapan pengurusan, penampilan sebarang kelemahan dan menperakukan cadangan pembaikan yang sewajarnya kepada Pengurusan. 3. Kawalan Dalaman Lembaga Pengarah mengakui akan pentingnya suatu sistem kawalan dalaman yang berkesan bagi memelihara pelaburan pemegang saham dan aset Syarikat. Penyata Kawalan Dalaman adalah dibentangkan di mukasurat 56 dan 57 Laporan Tahunan ini. 4. Perhubungan dengan Juruaudit Lembaga Pengarah telah mewujudkan perhubungan telus dan wajar melalui Jawatankuasa Audit dan Pemeriksaan. Juruaudit luar mempunyai tanggungjawab untuk menampilkan dan membawa ke pengetahuan Pengurusan, Jawatankuasa Audit dan Pemeriksaan dan Lembaga Pengarah, sebarang kelemahan ketara, yang terdapat pada sistem kawalan dalaman dan pematuhan Kumpulan. Peranan Jawatankuasa Audit dan Pemeriksaan berhubung dengan juruaudit luar telah dibentangkan dalam Laporan Jawatankuasa Audit dan Pemeriksaan di mukasurat 49 hingga 53 Laporan Tahunan ini Internal Audit Function The Company has an Internal Audit Department whose internal audit function is independent of the activities or operation of its auditees. The Department undertakes the audit of the Group s operating units as well as subsidiaries within the Group based on the audit plan that is reviewed and approved by the Committee. The audit plan covers the review of adequacy risk management, operational controls, compliance with laws and regulations, quality of assets and management efficacy, highlighting weaknesses and making appropriate recommendations for improvement to the Management. 3. Internal Control The Board recognizes the importance of a sound system of internal control to safeguard shareholders investments and the Company s assets. The Statement of Internal Control is set out on pages 56 and 57 of this Annual Report. 4. Relationship with Auditors The Board has established a transparent and appropriate relationship with its auditors through the Audit and Examination Committee. The External Auditors have an obligation to bring any significant weaknesses in the Group s system of internal control and compliance to the attention of the Management, the Audit and Examination Committee and the Board. The role of the Audit and Examination Committee in relation to the external auditors is described under the Audit and Examination Committee Report on pages 49 to 53 of this Annual Report.

55 IV. Pemegang Saham 1. Perhubungan dengan Pemegang Saham dan Pelabur Lembaga Pengarah mengakui betapa pentingnya penyebaran maklumat yang tepat pada masanya dan saksama berkaitan dengan prestasi Syarikat dan Kumpulan dan lain-lain perkara yang mempengaruhi kepentingan pemegang saham, kepada pemegang saham, pelabur dan orang awam. Salah satu daripada kaedah komunikasi yang penting dengan pemegang saham ialah melalui Laporan Tahunan yang mengandungi maklumat lengkap dan komprehensif berhubung keputusan kewangan dan prestasi Syarikat dan Kumpulan. Kumpulan juga berusaha menggunakan Mesyuarat Agung Tahunan dan Mesyuarat Agung Luar Biasa sebagai forum utama komunikasi dua-hala dengan pemegang saham. Pemegang saham digalakkan untuk mengemukakan soalan mengenai resolusi yang dicadangkan atau mengenai operasi Kumpulan secara am. Semasa Mesyuarat Agung Tahunan Pengerusi kepada Lembaga Pengarah, turut mengumumkan kepada pemegang saham kajian mengenai operasi Kumpulan bagi tahun kewangan serta menggariskan prospek-prospek (Kumpulan) bagi tahun kewangan yang baru. Sebagai tambahan, Syarikat, dari masa ke masa, membuat pelbagai pengumuman dan pendedahan mengenai cadangan korporat yang ketara kepada Bursa Malaysia Securities Berhad (termasuk pendedahan wajib di bawah Keperluan Penyenaraian). Langkah ini bertujuan membolehkan pelabur awam mempunyai akses yang munasabah kepada maklumat penting yang mempengaruhi Kumpulan. Subsidiari utama Syarikat, Bank Islam Malaysia Berhad dan Syarikat Takaful Malaysia Berhad (yang tersenarai di Papan Utama), turut membuat pendedahan kepada pihak media dari masa ke masa mengenai pelbagai perkara yang berkaitan dengan aktiviti masing-masing yang mempunyai kepentingan kepada orang ramai. 55 IV. Shareholders 1. Relationship with Shareholders and Investors The Board recognizes the importance of timely and equal dissemination of information with regard to the Company s and the Group s performance and other matters affecting shareholders interest, to shareholders, investors and the general public. One of the most important means of communication to shareholders is through the Annual Report which contains comprehensive and sufficient details about the financial results and performance of the Company and the Group. The Group also strives to utilize the Annual General Meeting (AGM) and Extraordinary General Meetings (EGM) as the principal forum of two-way communication with its shareholders. The shareholders are encouraged to ask questions both about the resolutions being proposed and about the Group s operation in general. At the AGM the Chairman of the Board also addresses the shareholders on the review of the Group s operations for the financial year and outlines the prospects (of the Group) for the new financial year. In addition, the Company from time to time makes various announcements and disclosures on material corporate proposals to Bursa Malaysia Securities Berhad (including mandatory disclosures under the Listing Requirements) so that the investing public has reasonable access to material information affecting the Group. The Company s major subsidiaries, Bank Islam Malaysia Berhad and Syarikat Takaful Malaysia Berhad (listed on the Main Board) also make disclosures to the media from time to time on various matters pertaining to their activities that are of public interest.

56 PENYATA KAWALAN DALAMAN STATEMENT ON INTERNAL CONTROL Secara keseluruhan Lembaga Pengarah adalah bertanggungjawab terhadap pengendalian satu sistem kawalan dalaman yang memberikan jaminan yang berpatutan kepada operasi yang berkesan dan pematuhan kepada peraturan dan undang-undang serta prosedur dan garis panduan dalaman. Sistem kawalan dalaman BIMB Holdings Berhad ( Kumpulan BHB ) hanya berupaya memberikan jaminan yang berpatutan sahaja bukan jaminan mutlak dari salah nyata, kerugian atau penipuan. Sistem tersebut direka untuk menentukan supaya dalam melaksanakan urusan perniagaan Kumpulan, dalam rangka pencapaian matlamatnya, risiko boleh dikenalpasti dan diuruskan pada tahap yang boleh terima, dan tidak bertujuan menghapuskan risiko tersebut. Di sepanjang tahun kewangan 2005, melalui Jawatankuasa Pengurusan Risiko Bank Islam Malaysia Berhad (iaitu jawatankuasa salah satu subsidiari Kumpulan BHB), Lembaga Pengarah telah melaksanakan suatu proses mengenalpasti, menilai dan menguruskan risiko utama kewangan dan operasi yang dihadapi Kumpulan BHB. Keberkesanan sistem kawalan dalaman Kumpulan adalah tertakluk kepada kajian semula berkala oleh Jawatankuasa Audit dan Pemeriksaan untuk memastikan supaya ia adalah mengikut Garis Panduan Kawalan Dalaman dan bersesuaian dengan perubahan-perubahan dalam persekitaran perniagaan. Proses-proses utama yang telah diwujudkan oleh Lembaga Pengarah bagi mengkaji semula kecukupan dan integriti sistem kawalan dalaman adalah seperti berikut: Kumpulan BHB mempunyai struktur organisasi dengan saluran tanggungjawab dan akauntabiliti yang jelas. Melalui struktur laporannya kepada Jawatankuasa Audit dan Pemeriksaan ( JAP ), Jabatan Audit Dalam melaksanakan kajian semula ke atas proses-proses perniagaan material Kumpulan dari masa kesemasa, untuk menyemak keberkesanan, kecukupan dan integriti kawalan dalaman dan mengenengahkan sebarang risiko utama yang dihadapi oleh subsidiari-subsidiari Kumpulan BHB. 56 The Board has overall responsibility for maintaining a sound system of internal control that provides reasonable assurance of effective and efficient operations and compliance with laws and regulations as well as with internal procedures and guidelines. BIMB Holdings Berhad s ( the BHB Group ) system of internal control can only provide reasonable assurance but not absolute assurance against misstatements, loss or fraud, and is designed to ensure that the risks facing the Group s businesses in pursuit of its objectives are identified and managed at known and acceptable levels, rather than to eliminate those risks. During financial year 2005, the Board, through the Risk Management Committee of Bank Islam Malaysia Berhad (a committee of one of the BHB Group s subsidiaries) carried out the process of identifying, evaluating and managing the key operational and financial risk facing the BHB Group. The effectiveness of the Group s system of internal control is reviewed periodically by the Audit and Examination Committee to ensure that it is in accordance with the Internal Controls Guidance and to suit the changes in the business environment. The key processes that the Board has established to review the adequacy and integrity of the system of internal control are as follows: The BHB Group has an organizational structure with lines of responsibility and accountability. The Internal Audit Department, through its reporting structure to the Audit and Examination Committee ( AEC ), carries out regular reviews of the Group s material business processes to check the effectiveness, adequacy and integrity of internal controls and to highlight any significant risks faced by the subsidiaries of the BHB Group.

57 Jabatan Audit Dalam juga telah melaksanakan Audit Berasaskan-Risiko untuk mengenalpasti, menganalisa dan menguruskan risiko-risiko tersebut serta kesan-kesan yang berpotensi. Ia merupakan satu alat untuk mengenalpasti dan mengutamakan risiko-risiko dari aktiviti subsidiari-subsidiari, serta mengenalpasti, mengukur dan mengawal risiko-risiko tersebut. JAP sering mengadakan kajian semula dan perbincangan dengan Pengurusan mengenai tindakan yang diambil berkaitan dengan isu-isu kawalan dalaman yang dikenal pasti di dalam laporanlaporan dari Jabatan Audit Dalam, Juruaudit Luar, pihak-pihak berkuasa dan Pengurusan. Dalam memantau sistem kawalan dalaman di subsidiari-subsidiarinya, Lembaga Pengarah mempunyai perwakilan di dalam Lembaga Pengarah dalam semua subsidiarinya. Lembaga Pengarah telah juga mewujudkan Jabatan Organisasi dan Kaedah, yang mendokumenkan semua dasar dan prosedur yang telah ditetapkan bagi keseluruhan Kumpulan BHB sebagaimana yang telah diluluskan oleh Lembaga Pengarah. Disamping itu, sebagai satu lagi langkah memantau operasi perniagaan dan kawalan, Lembaga Pengarah telah juga menubuhkan beberapa Jawatankuasa di peringkat Lembaga Pengarah dan Pengurusan. Rancangan perniagaan dan bajet tahunan setiap subsidiari adalah diluluskan oleh Lembaga Pengarah subsidiari berkenaan, dan dikemukakan kepada Lembaga Pengarah Kumpulan untuk kajian semula dan kelulusan. Varians antara hasil sasaran dan hasil sebenar akan dikemukakan kepada Lembaga Pengarah subsidiari setiap bulan. Ini membolehkan respon yang tepat pada masanya dan tindakan pembetulan diambil untuk mengurangkan risiko. Fungsi sumber manusia Kumpulan telah mendokumen dan mewajibkan sistem bagi pengambilan, latihan dan penilaian prestasi. 57 The Internal Audit Department has also implemented the Risks-Based Audit to identify, analyze and manage the risks and their potential effects. It is a tool to identify and prioritize risks from the activities of the subsidiaries and one that will also identify, measure and control the risks. The AEC regularly reviews and holds discussions with the Management on the actions taken on internal control issues identified in the reports prepared by the Internal Audit Department, External Auditors, regulatory authorities and the Management. In monitoring the systems of internal control of its subsidiaries, the Group has Board representations in all the subsidiaries. The Group has also set up the Organizational and Method Department, which documents all the set policies and procedures throughout the BHB Group as approved by the Board. In addition, the Group has established several Board and management level committees in its monitoring efforts on the Group s business operations and controls. The subsidiaries annual business plans and budgets are approved at their respective Boards and will be submitted to the Group s Board for review and approval. The variances between the actual and targeted results are presented to the Boards of the subsidiaries on a monthly basis. This allows for timely responses and corrective action to be taken to mitigate risks. The Group s human resources function has documented and enforced recruitment, training and performance appraisal systems.

58 MAKLUMAT PEMATUHAN TAMBAHAN ADDITIONAL COMPLIANCE INFORMATION 1. Pembelian Semula Saham Syarikat tidak membeli sebarang sahamnya sendiri pada tahun kewangan berakhir 30 Jun Oleh yang demikian, Syarikat tidak mempunyai saham dagangnya sendiri. 2. Pelaksanaan Opsyen, Waran atau Sekuriti Boleh Tukar Skim Opsyen Saham Kakitangan Syarikat (ESOS) ditadbir oleh Undang-undang Kecil yang diluluskan oleh pemegang-pemegang saham di Mesyuarat Agung Tahunan yang diadakan atas Perintah Mahkamah pada 31 Mac 1997 dan berkuatkuasa pada 21 Ogos 1997 bagi tempoh 5 tahun. Dalam satu Mesyuarat Agung Luar Biasa yang diadakan pada 20 Ogos 2002, pemegang saham Syarikat telah meluluskan pelanjutan tempoh seterusnya bagi ESOS selama 5 tahun hingga 21 Ogos Setakat 31 Oktober 2005, Syarikat telah menawarkan sebanyak 53,576,500 Opsyen, yang mana 50,912,500 Opsyen kekal tidak dilaksana. Syarikat tidak menerbitkan sebarang sekuriti boleh tukar pada tahun kewangan berakhir 30 Jun American Depository Receipt (ADR) atau Global Depository Receipt (GDR) Syarikat tidak menaja sebarang program ADR atau GDR dalam tahun kewangan berakhir 30 Jun Yuran Bukan Audit Amaun yuran bukan audit yang telah dibayar/ akan dibayar oleh Syarikat kepada juruaudit luar dan syarikat-syarikat bersekutunya bagi tahun kewangan berakhir 30 Jun 2005 dinyatakan dalam nota 29 di muka surat 113 dalam Laporan Tahunan ini. 5. Jaminan Keuntungan Tiada jaminan keuntungan diberi oleh Syarikat pada tahun kewangan ini. 6. Senarai Hartanah Senarai hartanah dibentangkan di muka surat 130 hingga 135 dalam Laporan Tahunan ini Share Buybacks The Company did not purchase any of its own shares during the financial year ended 30 June As such, there is no treasury share maintained by the Company. 2. Options, Warrants or Convertible Securities Exercised The Company s Employees Share Option Scheme (ESOS) is governed by the By-Laws which was approved by the Shareholders at the Court convened Extraordinary General Meeting held on 31 March 1997 and became effective on 21 August 1997 for a period of 5 years. At an Extraordinary General Meeting held on 20 August 2002, the shareholders of the Company approved the extension of the ESOS for a further 5 years to 21 August As at 31 October 2005, the Company has offered a total of 53,576,500 Options, of which 50,912,500 Options remained unexercised. The Company has not issued any convertible securities in respect of the financial year ended 30 June American Depository Receipt (ADR) or Global Depository Receipt (GDR) The Company has not sponsored any ADR or GDR programme in the financial year ended 30 June Non-Audit Fees The amount of non-audit fees paid/payable to external auditors and their affiliated companies by the Company for the financial year ended 30 June 2005 is set out in note 29 on page 113 of this Annual Report. 5. Profit Guarantee There were no profit guarantees given by the Company during the financial year under review. 6. List of Properties The list of properties is set out on pages 130 to 135 of the Annual Report.

59 7. Kontrak-kontrak Penting Tiada kontrak penting yang ditandatangani oleh Syarikat dan subsidiarinya yang melibatkan para pengarah dan pemegang saham utama sama ada yang masih berkuatkuasa pada akhir tahun kewangan berakhir 30 Jun 2005 atau yang ditandatangani sejak akhir tahun kewangan sebelumnya. 8. Sekatan dan/atau Penalti yang dikenakan Tiada sekatan dan/atau penalti dikenakan ke atas Syarikat dan/atau syarikat-syarikat subsidiarinya, Pengarah-pengarah atau Pengurusan yang timbul daripada sebarang pelanggaran peraturan/ garispanduan/undang-undang yang ditetapkan oleh badan-badan penguatkuasaan undang-undang berkenaan pada tahun kewangan yang ditinjau. 9. Perbezaan Dalam Keputusan Tiada perbezaan keputusan (berbeza sebanyak 10% atau lebih) daripada sebarang ramalan / anggaran/ jangkaan keuntungan tidak beraudit yang diumumkan. 10. Cadangan Semakan Semula Ke Atas Penggunaan Kutipan Terbitan Hak Berikutan dengan pengumuman Syarikat pada 12 Oktober 2003 berkenaan dengan penggunaan garis panduan yang dibuat oleh Suruhanjaya Sekuriti berhubung penggunaan Kutipan Terbitan Hak mengenai Kutipan yang Tidak Digunakan daripada Penerbitan Hak pada 30 Disember 1999 (Baki Kutipan) mengandungi, antara lain, perkara-perkara berikut: i) pendedahan yang sesuai hendaklah dibuat kepada pemegang saham Syarikat berhubung sebarang semakan semula kepada penggunaan kutipan yang berikutnya di mana perbezaannya adalah kurang daripada 25%; dan ii) sebarang lanjutan masa bagi penggunaan kutipan hendaklah diluluskan dengan resolusi yang jelas oleh Lembaga Pengarah dan hendaklah didedahkan sepenuhnya kepada Bursa Malaysia Securities Berhad. Dengan kata lain, kuasa penuh diberi kepada Syarikat untuk menentukan jangka masa khusus di mana kutipan yang tidak digunakan akan digunakan Material Contracts There were no material contracts entered into by the Company and its subsidiaries involving the directors and substantial shareholders, either still subsisting at the end of the financial year ended 30 June 2005 or entered into since the end of the previous financial year. 8. Imposition of Sanctions and/or Penalties There were no sanctions and/or penalties imposed on the Company and /or its subsidiary companies, Directors or Management, arising from any significant breach of rules/guidelines/legislation by the relevant regulatory bodies during the financial year under review. 9. Variation in Results There were no variations in results (differing by 10% or more) from any profit estimation forecast/ projection/ unaudited results announced. 10. Proposed Revision on the Utilization of the Rights Issue Proceeds Pursuant to the announcement made by the Company on 12 October 2003 on the adoption of Securities Commission guidelines for the utilization of rights issue proceeds, relating to the remaining proceeds of rights issued on 30 December 1999 ( Remaining Proceeds ) comprising, inter-alia, the following: i) appropriate disclosure must be made to the shareholders of the Company for any subsequent revision to the utilization of proceeds whereby the deviation is less than 25%; and ii) any extension of time for the utilization of proceeds should be approved by a clear resolution by the Board of Directors and must be fully disclosed to the Bursa Malaysia Securities Berhad. In other words, full discretion is given to the Company to determine the specific time frame upon which the unutilized proceeds will be utilized.

60 MAKLUMAT PEMATUHAN TAMBAHAN ADDITIONAL COMPLIANCE INFORMATION Lembaga Pengarah BHB telah menimbang dan meluluskan penggunaan Baki Kutipan. Syarikat telah menggunakan sepenuhnya Baki Kutipan seperti berikut: Seperti yang Baki yang tidak Jangka masa Cadangan diluluskan oleh digunakan sedia ada yang tindakan dan SC dan pemegang- (RM juta) telah diluluskan jangka masa pemegang saham baru (RM juta) (a) Cadangan langganan 57,175,825 saham-saham baru dalam Syarikat Takaful Malaysia Berhad ( Syarikat Takaful ) pada harga RM1.00 sesaham berikutan dengan Cadangan Terbitan Hak Syarikat Takaful yang ( Cadangan Langganan ) dan baki yang akan digunakan untuk Modal Kerja BHB Tidak berkenaan Telah dilaksanakan (b) Cadangan langganan 30,000 saham-saham baru pada harga RM1.00 sesaham dan 29,970 Saham Keutamaan Boleh Tebus ( RPS ) pada harga RM1.00 setiap satu pada hanya RM1, bagi setiap RPS di dalam cadangan syarikat modal teroka yang baru, BIMB Musyarakah Dua Sdn Bhd Tidak berkenaan Diperuntukkan semula kepada Bank Islam Malaysia Berhad untuk modal Tahap 2 telah dilaksanakan pada 30 Jun 2005 (c) Cadangan langganan 4,975,000 saham-saham baru pada harga RM1.00 sesaham dan 18,015,000 RPS baru pada harga RM1.00 setiap RPS dalam BIMB Securities (Holdings) Sdn Bhd ( BIMB Securities (Holdings) ) Tidak berkenaan Telah dilaksanakan (d) Cadangan bayaran pendahuluan pemegang saham kepada BIMB Securities (Holdings) Sdn. Bhd. telah digunakan untuk pelaburan dan modal kerja BHB 2.00 Tidak berkenaan Telah dilaksanakan 60 The Board of Directors of BHB has deliberated and approved the revision of utilization of the Remaining Proceeds. The Company has fully utilized the remaining proceeds as follows: As approved Unutilized Existing Proposed action by the SC and balance approved and new shareholders (RM million) time frame time frame (RM million) (a) Proposed subscription of 57,175,825 new Shares in Syarikat Takaful Malaysia Berhad ( Syarikat Takaful ) at RM1.00 per Share pursuant to Syarikat Takaful s proposed rights issue ( Proposed Subscription ) and the balance to be utilized for BHB s working capital Not applicable Implemented (b) Proposed subscription of 30,000 new Shares at RM1.00 per share and 29,970 new Redeemable Preference Shares ( RPS ) of RM1.00 each at RM1, per RPS in a proposed new venture capital company, BIMB Musyarakah Dua Sdn Bhd Not applicable Reallocation to Bank Islam Malaysia Berhad for Tier-2 capital has been implemented on 30 June 2005 (c) Proposed subscription of 4,975,000 new Shares at RM1.00 per Share and 18,015,000 new RPS of RM1.00 each at RM1.00 per RPS in BIMB Securities (Holdings) Sdn Bhd ( BIMB Securities (Holdings) ) Not applicable Implemented (d) Proposed shareholders advance to BIMB Securities (Holdings) instead has been utilized for BHB s investments and working capital 2.00 Not applicable Implemented

61 Seperti yang Baki yang tidak Jangka masa Cadangan diluluskan oleh digunakan sedia ada yang tindakan dan SC dan pemegang- (RM juta) telah diluluskan jangka masa pemegang saham baru (RM juta) (e) Cadangan langganan 2,400,000 saham-saham baru dalam Islamic Banking and finance Institute Malaysia ( IBFIM ) pada harga RM1.00 sesaham berikutan dengan cadangan terbitan hak IBFIM 2.40 Tidak berkenaan Telah dilaksanakan (f) Cadangan langganan 100,000,000 saham-saham baru dalam Bank Islam Malaysia Berhad pada harga RM1.00 sesaham Tidak berkenaan Telah dilaksanakan (g) Cadangan langganan 15,000,000 saham-saham baru dalam Syarikat Al-Ijarah Sdn Bhd pada harga RM1.00 sesaham dan baki digunakan untuk modal kerja BHB Tidak berkenaan Diperuntukkan semula kepada Bank Islam Malaysia Berhad untuk modal Tahap 2 telah dilaksanakan pada 30 Jun 2005 (h) Modal Syarikat untuk Kumpulan 4.89 Tidak berkenaan Telah dilaksanakan JUMLAH As approved Unutilized Existing Proposed action by the SC and balance approved and new shareholders (RM million) time frame time frame (RM million) (e) Proposed subscription of 2,400,000 new Shares in Islamic Banking and Finance Institute Malaysia ( IBFIM ) at RM1.00 per Share pursuant to IBFIM s proposed rights issue 2.40 Not applicable Implemented (f) Proposed subscription of 100,000,000 new Shares in Bank Islam Malaysia Berhad at RM1.00 per Share Not applicable Implemented (g) Proposed subscription of 15,000,000 new Shares in Syarikat Al-Ijarah Sdn Bhd at RM1.00 per Share and the balance to be utilized for BHB s working capital Not applicable Reallocation to Bank Islam Malaysia Berhad for Tier-2 capital has been implemented on 30 June 2005 (h) Working capital for the Group 4.89 Not applicable Implemented TOTAL

62 MAKLUMAT PEMATUHAN TAMBAHAN ADDITIONAL COMPLIANCE INFORMATION 11. Mandat Am Pada Mesyuarat Agung Tahunan yang lalu, Syarikat telah memperolehi mandat daripada pemegang sahamnya untuk membenarkan Syarikat dan/atau syarikat-syarikat subsidiarinya dalam perjalanan perniagaan biasa, memeterai urusniaga berulang berbentuk hasil atau perdagangan dengan pihak-pihak berkaitan, yang perlu untuk operasi hariannya, di atas terma yang tidak lebih memihak kepada pihak berkaitan berbanding yang tersedia kepada orang ramai dan tidak memudaratkan pemegang saham minoriti ( RRPT ). Mandat RRPT adalah sah sehingga Mesyuarat Agung Tahunan Syarikat akan datang. Lembaga Pengarah mencadangkan permohonan pembaharuan RRPT pada Mesyuarat Agung Tahunan Syarikat akan datang. Mandat RRPT ini, jika diluluskan oleh pemegang-pemegang saham akan sah sehingga Mesyuarat Agung Tahunan Syarikat akan datang. 12. Urusniaga Berulang Pihak Berkaitan Bentuk Urusniaga** Aktiviti Pihak Berkaitan / Pengarah dan / atau Pemegang Nilai Urusniaga sebenar dari Prinsipal Saham Utama yang Berminat 1 Julai 2004 hingga 30 Jun 2005 (RM 000) * Yuran pembrokeran perlu dibayar kepada Kumpulan BIMB Holdings Lembaga Tabung Haji ( LTH ) LTH terlibat terutamanya dalam mempromosi ibadat haji ahli-ahli ke Mekah, deposit dan pelaburan LTH adalah pemegang saham utama BIMB Holdings dengan pegangan saham sebanyak 29.65% Sewa premis pejabat perlu dibayar oleh Kumpulan BIMB Holdings 1, General Mandate The Company had, at the last Annual General Meeting (AGM), obtained a general mandate from its shareholders to allow the Company and/or its subsidiaries in their normal course of business, to enter into recurrent transactions of a revenue or trading nature with related parties, which are necessary for its day-to-day operations, on terms not more favourable to the related party than those available to the general public and not to the detriment of the minority shareholders ( RRPT ). The RRPT Mandate is valid until the conclusion of the forthcoming AGM of the Company. The Board proposes to seek renewal of the RRPT at the forthcoming AGM of the Company. This RRPT Mandate, if approved by shareholders, would be valid until the conclusion of the next AGM of the Company. 12. Recurrent Related Party Transaction Nature of Transactions** Related Party/ Interested Director and /or Actual Transaction Value from Principal Activities Major Shareholder 1 July 2004 to 30 June 2005 (RM 000) * Brokerage fees payable to BIMB Holdings Group Lembaga Tabung Haji (LTH) LTH is principally involved in promoting members pilgrimages to Mecca, deposits and investments LTH is a major shareholder of BIMB Holdings with 29.65% shareholding Rental of office premises payable by BIMB Holdings Group 1,307.00

63 Bentuk Urusniaga** Aktiviti Pihak Berkaitan / Pengarah dan / atau Pemegang Nilai Urusniaga sebenar dari Prinsipal Saham Utama yang Berminat 1 Julai 2004 hingga 30 Jun 2005 (RM 000) * Yuran pembrokeran perlu dibayar kepada Kumpulan BIMB Holdings Berhad Permodalan Nasional Berhad (PNB) ± PNB terlibat terutamanya dalam pegangan pelaburan dan perkhidmatan rundingan pengurusan PNB adalah pemegang saham utama BIMB Holdings dengan pegangan saham sebanyak 25.11% Yuran pembrokeran perlu dibayar kepada Kumpulan BIMB Holdings Amanah Saham Bumiputera (ASB) ± ASB adalah satu skim dana diasaskan di bawah PNB ASB adalah pemegang saham utama BIMB Holdings dengan 5.33% dicagar dengan Amanah Raya Nominee Tempatan) Sdn Bhd Yuran pembrokeran perlu dibayar kepada Kumpulan BIMB Holdings Sewa premis pejabat perlu dibayar oleh Kumpulan BIMB Holdings Employee s Provident Fund Board (EPF) EPF adalah sebuah badan berkanun di bawah AKTA KWSP 1991 terlibat terutamanya dalam dana wang simpanan EPF adalah pemegang saham utama BIMB Holdings dengan pegangan saham sebanyak 6.68% Sewa premis pejabat perlu dibayar oleh Kumpulan BIMB Holdings Majlis Ugama Islam Sabah (MUIS) MUIS terlibat terutamanya dalam pembentukan berkaitan hal-ehwal agama di negeri Sabah MUIS adalah pemegang saham utama BIMB Holdings dengan pegangan saham sebanyak 5.57% Nature of Transactions** Related Party/ Interested Director and /or Actual Transaction Value from Principal Activities Major Shareholder 1 July 2004 to 30 June 2005 (RM 000) * Brokerage fees payable to BIMB Holdings Group Permodalan Nasional Berhad (PNB) ± PNB is principally involved in investment holding and provision of management consultancy services PNB is a major shareholder of BIMB Holdings with 25.11% shareholding Brokerage fees payable to BIMB Holdings Group Amanah Saham Bumiputera (ASB) ± ASB is a fund scheme initiated under PNB ASB is a major shareholder of BIMB Holdings with 5.33%, pledged with Amanah Raya Nominees (Tempatan) Sdn Bhd Brokerage fees payable to BIMB Holdings Group Rental of office premises payable by BIMB Holdings Group Employee s Provident Fund Board (EPF) EPF is a statutory body formed under the EPF ACT 1991 principally involved in provident funds EPF is a major shareholder of BIMB Holdings with 6.68% shareholding Rental of office premises payable by BIMB Holdings Group Majlis Ugama Islam Sabah (MUIS) MUIS is principally involved in the policy-making in relation to the religious affairs of the State of Sabah MUIS is a major shareholder of BIMB Holdings with 5.57% shareholding

64 MAKLUMAT PEMATUHAN TAMBAHAN ADDITIONAL COMPLIANCE INFORMATION 12. Urusniaga Berulang Pihak Berkaitan (bersambung) Bentuk Urusniaga** Aktiviti Pihak Berkaitan / Pengarah dan / atau Pemegang Nilai Urusniaga sebenar dari Prinsipal Saham Utama yang Berminat 1 Julai 2004 hingga 30 Jun 2005 (RM 000) * Yuran pengurusan portfolio perlu dibayar kepada Kumpulan BIMB Holdings. Sewa premis pejabat perlu dibayar oleh Kumpulan BIMB Holdings Syarikat Takaful Malaysia Berhad (STMB) STMB terlibat terutamanya dalam perniagaan takaful keluarga dan am Dato Mohd Yusoff Hj. Nasir, Pengerusi BIMB Holdings yang merupakan Pengerusi STMB (tidak mempunyai sebarang pegangan saham langsung/tidak langsung dalam STMB) Dato Mohd Yusoff Hj. Nasir telah bersara sebagai Pengerusi pada 1 Disember , Dato Ahmad Tajudin Abdul Rahman adalah Pengarah BIMB Holdings dan pemegang saham STMB dengan pemegang saham masing-masing sebanyak 26,000 (0.018%) seperti pada 30 September 2005 Dato Ahmad Tajudin Abdul Rahman telah bersara sebagai Pengarah pada 1 Julai Recurrent Related Party Transaction (cont d) Nature of Transactions** Related Party/ Interested Director and /or Actual Transaction Value from Principal Activities Major Shareholder 1 July 2004 to 30 June 2005 (RM 000) * Portfolio management fees payable to BIMB Holdings Group # Rental of office premises payable by BIMB Holdings Group Syarikat Takaful Malaysia Berhad (STMB) STMB is principally involved in family and general takaful business Dato Mohd Yusoff Hj. Nasir is Chairman of BIMB Holdings and also Chairman of STMB. Dato Mohd Yusoff has no direct/ indirect shareholding in STMB Dato Mohd Yusof Hj. Nasir retired as Chairman of BIMB Holdings on 1 December , Dato Ahmad Tajudin Abdul Rahman is a Director of BIMB Holdings and also a shareholder of STMB with shareholdings of 26,000 (0.018%) as at 30 September 2005 Dato Ahmad Tajudin Abdul Rahman retired as Director of BIMB Holdings on 1 July 2004

65 Bentuk Urusniaga** Aktiviti Pihak Berkaitan / Pengarah dan / atau Pemegang Nilai Urusniaga sebenar dari Prinsipal Saham Utama yang Berminat 1 Julai 2004 hingga 30 Jun 2005 (RM 000) * Yuran Kesetiausahaan perlu dibayar kepada Kumpulan BIMB Holdings Datuk Siti Maslamah Osman, Pengarah Syarikat juga merupakan Pengarah STMB. Datuk Siti tidak mempunyai sebarang pegangan saham langsung/tidak langsung dalam STMB Yuran pembrokeran perlu dibayar kepada Kumpulan BIMB Holdings Yuran pengurusan portfolio perlu dibayar oleh Kumpulan BIMB Holdings BIMB Securities Sdn Bhd (BSSB) BSSB terlibat terutamanya dalam peruntukan pembrokeran stok dan aktiviti berkaitan berdasarkan prinsip Shariah Dato Dr. Abdul Halim Ismail (DDAHI) DDAHI, Pengarah Syarikat juga merupakan Pengarah BSSB ± Tahun lepas, anggaran bagi PNB dan ASB yang diambil sebagai anggaran urusniaga kami yang keseluruhannya di bawah PNB * Nilai urusniaga sebenar diambil daripada Laporan Tahunan bagi tahun kewangan berakhir 30 Jun 2005 # Yuran Pengurusan adalah yuran yang perlu dibayar kepada BIMSEC Asset Management Sdn Bhd bagi dan yang diletak/dilabur dengan mereka oleh Kumpulan Syarikat kami terutamanya BIMB Holdings dan Bank Islam Malaysia Berhad ** Bentuk Urusniaga merujuk kepada urusniaga semasa 65 Nature of Transactions** Related Party/ Interested Director and /or Actual Transaction Value from Principal Activities Major Shareholder 1 July 2004 to 30 June 2005 (RM 000) * Secretarial fees payable to BIMB Holdings Group Datuk Siti Maslamah Osman, a Director of BIMB Holdings, is also a Director of STMB. Datuk Siti has no direct/indirect shareholding in STMB Brokerage fees payable to BIMB Holdings Group Portfolio management fees payable by BIMB Holdings Group # BIMB Securities Sdn Bhd (BSSB) BSSB is principally involved in the provision of stockbroking and related activities based on the principles of Shariah Dato Dr. Abdul Halim Ismail (DDAHI) DDAHI, a Director of BIMB Holdings, is also a Director of BSSB ± Last year, the estimate for both PNB and ASB taken as our estimated transaction solely under PNB * The actual transaction value is extracted from the Annual Report for the financial year ended 30 June 2005 # Management fees are fees payable to BIMSEC Asset Management Sdn Bhd for the funds placed/invested with them by our Group Companies, especially BIMB Holdings and Bank Islam Malaysia Berhad ** Nature of Transactions refers to existing transactions

66 CATATAN PERISTIWA CALENDAR OF EVENTS 1 7 SEPTEMBER 2004 Ciri-ciri Kad ATM BIMB dimasukkan dalam MyKad /BIMB ATM card features are incorporated into MyKad 2 15 SEPTEMBER 2004 BIMB menandatangani MoU dengan e-pay/bimb signs MoU with e-pay 3 21 SEPTEMBER 2004 BIMB melancarkan khidmat perbankan SMS pertama yang tidak bergantung kepada syarikat telekomunikasi /BIMB launches country s first telcoindependent SMS banking service OCTOBER 2004 BIMB menyumbangkan Dermasiswa RM98,000 kepada empat pelajar KUIM/BIMB provides RM98,000 in scholarships to four KUIM students 5 29 NOVEMBER 2004 Mesyuarat Agung Tahunan BIMB Holdings Berhad (BHB) ke-7/bimb Holdings Berhad s (BHB) 7th Annual General Meeting 6 29 NOVEMBER 2004 BHB mengucapkan salam perpisahan kepada bekas pengerusinya, Dato Mohd Yusoff Nasir/BHB bids farewell to its former Chairman, Dato Mohd Yusoff Nasir

67 7 17 DECEMBER 2004 Ketua Pegawai Informasi BIMB, Jamil Hassan terima anugerah CIO of the Year daripada PIKOM/BIMB Chief Information Officer, Jamil Hassan, receives CIO of the Year award from PIKOM 8 3 MARCH 2005 BIMB menganjurkan kempen menderma darah/bimb organizes a blood donation campaign 9 25 APRIL 2005 BIMB menghargai jasa dua ahli Majlis Pengawasan Syariah yang bersara, Dato Sheikh Ghazali Abdul Rahman and Dato Md. Hashim Yahaya / BIMB honours two outgoing Shariah Supervisory Council members, Dato Sheikh Ghazali Abdul Rahman and Dato Md. Hashim Yahaya JUNE 2005 BIMB memberi sumbangan RM30,000 kepada Tabung Pelajar KUIS/BIMB gives RM30,000 to KUIS Students Fund JUNE 2005 Jabatan IT BIMB terima persijilan ISO BS7799: daripada SIRIM/ BIMB IT Department receives BS7799: ISO certification from SIRIM JUNE 2005 BIMB dilantik sebagai bank ejen kepada BPIMB/BIMB is appointed as BPIMB s agent bank

68 68 PENYATA KEWANGAN FINANCIAL STATEMENTS

69 Kumpulan BIMB Holdings Berhad diamanahkan tugas memajukan pengurusan kewangan Islam di Malaysia sebagai model sistem kewangan Islam yang paling cekap di dunia dan juga menjadikannya pilihan alternatif kepada sistem konvensional yang telah lama bertapak. 69 The BIMB Holdings Berhad Group is charged with the responsibility of advancing the Malaysian model of Islamic finance today into one of the most efficient Islamic financial systems in the world, and a viable alternative to the more established conventional system.

70 DIRECTORS REPORT for the year ended 30 June 2005 The Directors hereby submit their report and the audited financial statements of the Group and of the Company for the year ended 30 June Principal Activities The Company is principally engaged as an investment holding company with business transacted in accordance with Islamic principles, whilst the principal activities of the subsidiaries are as stated in Note 9 to the financial statements. There has been no significant change in the nature of these activities during the financial year. Results GROUP RM 000 COMPANY RM 000 Net (loss)/ profit for the year (456,851) 57,393 Reserves and Provisions There were no material movements to or from reserves and provisions during the year under review other than as disclosed in the financial statements. Dividends During the financial year, the Company paid a final dividend of 8.5% less 28% tax, in respect of the previous financial year totalling RM34,453,458, which has been dealt with in the Directors report for that financial year end and paid on 23 December The Directors recommend the payment of a final dividend of 2.5% less 28% tax, amounting to RM10,133,370 in respect of the current financial year, based on the issued and paid-up capital as at 30 June 2005 of 562,965,000 ordinary shares of RM1 each. 70 Current Business Review BIMB Holdings Berhad Group ( the Group ) reported a net loss of RM457 million for the financial year ended 30 June The loss was mainly attributed to higher provisions of which a large percentage was due to non-performing financings (NPFs) in its banking subsidiary, Bank Islam Malaysia Berhad ( Bank Islam or BIMB ). While Bank Islam reported a loss, most subsidiaries of the Company recorded improvements across the board. The high amount of provisions was largely due to NPFs of the Banking Division s offshore unit, Bank Islam Labuan Limited ( BILL ). The conversion of BILL into a branch of Bank Islam led to the adoption of stricter NPF regulation as well as a more stringent risk management framework, resulting in a more prudent financial reporting of offshore activities. Economic Outlook The Group expects the Malaysian economy to continue to expand within the range of 5% 6% in 2005 based on strong domestic consumption and private sector investments. This projection is underpinned by strong fundamentals, which include stable household income, low unemployment rate, high foreign reserve and strong balance of payment. On the supply side, the main impetus of growth is in the service sector, whilst manufacturing activities still remain resilient. The unpegging of the Malaysian Ringgit is expected to provide a more conducive business environment for Malaysia. Although global growth is expected to moderate due to high oil prices, inflationary pressures and interest rate hikes, the outlook for 2005 will generally remain favourable. Malaysia s strong macroeconomic fundamentals and resilience, backed by sturdy domestic demand and broad-based growth, will however continue to support the forecast GDP growth. Business Outlook and Strategy The Islamic banking industry ( IBI ) continues to expand amidst the moderate operating environment. As of May 2005, financing activities in IBS increased by 17.2% to RM63 billion and accounted for 12% of total loans in the banking system ( BS ). Similarly, deposits increased by 19% to RM60 billion and accounted for 9% of total deposits in the BS. The growth rates recorded by IBI surpassed that of BS which recorded only a single digit growth of 9% in loans and 15% in deposits for the same period. Against this backdrop, we envisage that growth in IBI will remain strong albeit intense competition with the increase in number of new players.

71 In line with the industry outlook, the Group has outlined a strategic plan that concentrates on four core areas; franchise or business strategies, people management and development, risks management and controls and financials. At banking division, the focus will be more on consumer banking with the aim to increase market share in credit card business, as well as home and vehicle financing. As for commercial banking, the focus will be on the origination process with emphasis on sales, distribution, treasury and cash management activities. Meanwhile, for corporate banking, the division will focus on selective top-tier listed companies, government-linked companies and multinational companies, in its bid to contribute towards BIMB s overall performance. As for takaful division, the focus will be to mobilize its resources towards aggressive marketing and improve its delivery channel. Employing the unique Al-Mudharabah principle, which is fast gaining popularity amongst participants, Syarikat Takaful Malaysia Berhad is poised to withstand any future competition and business challenges. With regard to people management and development, the Group will rely on its existing talent pool while continuing to hire experts in strategic business areas. Nonetheless, a re-organisation exercise has been implemented to improve focus and increase staff productivity. Training will be a priority and a merit-based staff performance evaluation system will be put in place. As for risks management and controls, the Group, in particular the banking division, will conduct continuous reviews on existing policies and procedures. A process re-engineering exercise will be undertaken to enhance BIMB s compliance culture and inculcate risk appreciation. Data reliability and adherence to the Basel II Accord will be the top priority moving forward. The Group will continue to introduce and adopt appropriate measures to improve its financial standing and enhance its profitability. These will include cost control measures, enhancement of fee-based activities, control of NPFs as well as review of income drivers. With the implementation of the above strategies, the Group is expected to chart commendable growth and uphold its position as Malaysia s premier Islamic financial institution despite challenges from new competitors and the sooner-than-expected market liberalisation. Rating by External Rating Agency Details of rating conducted by an external agency on a subsidiary, Bank Islam Malaysia Berhad are as follows: 71 Rating agency Date Rating classification Rating reaffirmed Malaysian Rating Corporation Berhad April 2005 Financial institution A Short term MARC-1 Bad and Doubtful Debts and Financing In preparing the financial statements of the Group and of the Company, the Directors have taken all necessary steps in relation to the writing off of bad debts and financing and the making of allowance for doubtful debts and financing. The Directors have also satisfied themselves that all known bad debts and financing have been written off and adequate allowance made for bad and doubtful debts and financing. At the date of this report, the Directors are not aware of any circumstances that would render the amount written off for bad debts and financing, or the amount of the allowance for doubtful debts and financing, in the Group and in the Company inadequate to any substantial extent. Current Assets In preparing the financial statements of the Group and of the Company, the Directors have taken all necessary steps to ascertain that all current assets have been stated at the lower of cost and net realisable value. At the date of this report, the Directors are not aware of any circumstances that would render the value attributed to the current assets in the Group and in the Company financial statements misleading. Valuation Methods At the date of this report, the Directors are not aware of any circumstances which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

72 DIRECTORS REPORT for the year ended 30 June 2005 Contingent and Other Liabilities At the date of this report, there does not exist: a. any charge on the assets of the Group and of the Company which has arisen since the end of the financial year and which secures the liabilities of any other person, or b. any contingent liabilities in respect of the Group and of the Company that has arisen since the end of the financial year other than those incurred in the ordinary course of the business. No contingent or other liability of the Group and of the Company has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and the Company to meet its obligations as and when they fall due. Change of Circumstances At the date of this report, the Directors are not aware of any circumstances, not otherwise dealt with in this report or the financial statements, which would render any amount stated in the financial statements of the Group and of the Company misleading. Items of An Unusual Nature In the opinion of the Directors, the results of the operations of the Group and of the Company for the financial year ended 30 June 2005 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that financial year and the date of this report. 72 Employee Share Option Scheme The Company s Employee Share Option Scheme ( ESOS ) is governed by the by-laws which were approved by the shareholders of the Court-convened Extraordinary General Meeting held on 31 May 1997 and became effective on 21 August 1997 for a period of five years. At an Extraordinary General Meeting held on 20 August 2002, the shareholders of the Company approved the extension of the ESOS for a further period of five years to 21 August The main features of the ESOS are: a. Eligible person are employees of the Company who have been confirmed in writing and are in the employment of the Company including full-time executive Directors. b. The total number of shares to be offered shall not exceed 10% of the issued and paid up share capital of the Company at any point of time during the tenure of ESOS. c. The option price for each share shall be the average of the mean market quotation of the shares of the Company in the daily official list issued by Bursa Malaysia for the five trading days preceding the date of the offer, or the par value of the share of the Company of RM1, whichever is higher. d. The number of shares under the option, the option price and the method of exercise of the options may be adjusted as a result of any alteration of the capital structure of the Company by way of capitalisation of profits or reserve, right issues or reduction of capital, if any, made by the Company while an option remains unexercised.

73 e. The movement in the options to take up unissued new ordinary shares of RM1 each and the option price are as follows: Option At At price Granted Exercised RM ,868,500 45,868, ,044,000 5,044,000 Directors of the Company Directors who served since the date of the last report are: Dato Mohd Bakke Salleh Dato Dr. Abdul Halim Haji Ismail Professor Dr. Muhamad Muda Mohd Zin Idris Datuk Dr. Elias Md. Kadir Baba Datuk Siti Maslamah Osman Datuk Burhanuddin Ahmad Tajudin Salih Amaran Jamiaan (Appointed on 18 February 2005) Dato Noorazman A. Aziz (Appointed on 1 April 2005) Khalid Mahmood Bhaimia (Resigned on 12 November 2004) Dato Mohd Yusoff Hj. Nasir (Retired on 1 December 2004) The holdings and deemed holdings in the ordinary shares of the Company and of its related corporations (other than wholly-owned subsidiaries) of those who were Directors at year end as recorded in the Register of Directors Shareholdings are as follows: Number of ordinary shares At At COMPANY Acquired Sold Dato Dr. Abdul Halim Haji Ismail 1,400 1,400 None of the other Directors holding office at 30 June 2005 had any interest in the ordinary shares of the Company and of its related corporations during the financial year.

74 DIRECTORS REPORT for the year ended 30 June 2005 Directors Benefits During the financial year, none of the Directors of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements or the fixed salary of a full time employee of the Company) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest except for those transactions arising in the ordinary course of business as disclosed in the financial statements and the share options mentioned below. There were no arrangements during the financial year which enable the Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate, other than share options granted pursuant to the ESOS. The following Directors holding office at the end of the financial year were offered and have accepted options to subscribe for the shares of the Company under the ESOS. The Directors interests in the options during the financial year were as follows: Number of options over ordinary shares of RM1.00 each Exercise At At price Granted Exercised RM Dato Dr. Abdul Halim Haji Ismail , ,000 Issue of Shares There were no changes in the issued and paid up capital of the Company during the financial year. 74 Auditors The auditors, Messrs. KPMG Desa Megat & Co., have indicated their willingness to accept re-appointment. Signed in accordance with a resolution of the Directors: DATO MOHD BAKKE SALLEH MOHD ZIN IDRIS Kuala Lumpur, 20 October 2005

75 STATEMENT BY DIRECTORS pursuant to Section 169(15) of the Companies Act, 1965 In the opinion of the Directors, the financial statements set out on pages 78 to 129 are drawn up in accordance with the provision of the Companies Act, 1965 with such modifications and exceptions as have been determined by Bank Negara Malaysia pursuant to subsection 19 of Section 169 of the said Act and applicable approved accounting standards in Malaysia, so as to give a true and fair view of the state of affairs of the Group and of the Company at 30 June 2005 and of the results of their operations and cash flows for the year ended on that date. Signed in accordance with a resolution of the Directors: DATO MOHD BAKKE SALLEH MOHD ZIN IDRIS Kuala Lumpur, 20 October 2005 STATUTORY DECLARATION pursuant to Section 169(16) of the Companies Act, 1965 I, Nazlan Ozizi Ibrahim, the officer primarily responsible for the financial management of BIMB Holdings Berhad, do solemnly and sincerely declare that the financial statements set out on pages 78 to 129 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, Subscribed and solemnly declared by the above named in Kuala Lumpur on 20 October NAZLAN OZIZI IBRAHIM Before me: MOHD RADZI YASIN (W327) Commisioner for Oaths Kuala Lumpur

76 REPORT OF THE SHARIAH SUPERVISORY COUNCIL The Shariah Supervisory Council ( SSC ) was established under the provision of Section 3(5)(b) of the Islamic Banking Act 1983 to advise the Group and the Company on the operation of its banking business in order to ensure that they do not involve any element which is not approved by Islam. The SSC advises the Directors on matters pertaining to the operational issues of the Group and the Company. The SSC also takes the views of Shariah Committees of relevant authorities such as Bank Negara Malaysia and Securities Commission from time to time on issues relating to the industry. The duties and responsibilities of SSC are to review, appraise and advise the Directors on the operations of the Group and Company s business in order to ensure that they do not involve any element which is not approved by Islam. The roles of SSC in monitoring the Group and the Company s activities are as follows: a. Review the products and services to ensure conformity with the Shariah requirements. b. Deliberate on Shariah issues pertaining to the day to day operations of the Group and the Company and provide advice accordingly. c. Form opinions on the operations of the Group and the Company on whether they are Shariah compliant. d. Provide training and education on muamalat or Islamic transactions based on Shariah principles. The roles of SSC with respect to zakat are as follows: a. Review computation of zakat and approve the amount to be paid according to Shariah. b. Advise on the distribution of zakat to the appropriate asnaf. 76 We, Dr. Abdullah Hj Ibrahim and Mohd. Bakir Haji Mansor, being two of the members of Shariah Supervisory Council of BIMB Holdings Berhad, do hereby confirm on behalf of the members of the Council, that in our opinion, the operations of the Group and the Company for the year ended 30 June 2005 have been conducted in conformity with the Shariah principles. On behalf of the Council: DR. AHMAD SOBRI SALAMON MOHD BAKIR HJ. MANSOR Kuala Lumpur, 20 October 2005

77 REPORT OF THE AUDITORS to the members of BIMB Holdings Berhad We have audited the financial statements set out on pages 78 to 129. The preparation of the financial statements is the responsibility of the Company s Directors. It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies Act 1965 and for no other purpose. We do not assume responsibility to any other person for the content of this report. We conducted our audit in accordance with approved Standards on Auditing in Malaysia. These standards require that we plan and perform the audit to obtain all the information and explanations which we consider necessary to provide us with evidence to give reasonable assurance that the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. An audit also includes an assessment of the accounting principles used and significant estimates made by the Directors as well as evaluating the overall adequacy of the presentation of information in the financial statements. We believe our audit provides a reasonable basis for our opinion. In our opinion: a. the financial statements are properly drawn up in accordance with the provisions of the Companies Act, 1965 with such modifications and exceptions as have been determined by Bank Negara Malaysia pursuant to subsection 19 of Section 169 of the said Act and applicable approved accounting standards in Malaysia, so as to give a true and fair view of: i) the state of affairs of the Group and of the Company at 30 June 2005 and the results of their operations and cash flows for the year ended on that date; and ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of the Group and of the Company; and b. the accounting and other records and the registers required by the Companies Act, 1965 to be kept by the Company and the subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the said Act. 77 The subsidiaries in respect of which we have not acted as auditors are identified in Note 9 to the financial statements and we have considered their financial statements and the auditors reports thereon. We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company s financial statements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes. The audit reports on the financial statements of the subsidiaries were not subject to any qualification and did not include any comment made under subsection (3) of Section 174 of the Act. KPMG Desa Megat & Co. Firm Number: AF 0759 Chartered Accountants Abdullah Abu Samah Partner Approval Number: 2013/06/06(J)

78 BALANCE SHEETS as at 30 June 2005 GROUP COMPANY Note RM 000 RM 000 RM 000 RM 000 Assets Cash and short term funds 2 2,877,390 1,492,008 4,423 14,201 Deposits and placements with financial institutions 3 633, ,176 Dealing securities 4 1,151,789 1,957,927 15,749 83,635 Investment securities 5 3,591,124 2,914,822 25, ,163 Financing, advances and other loans 6 9,212,896 8,778, ,000 Deferred tax 18 19,320 20,602 Bills receivable 9,069 12,064 Other receivables 8 177, , ,055 Tax recoverable 6,384 3, Investments in subsidiary companies 9 1,123,260 1,023,260 Investment in associated companies 10 4,107 4,511 5,019 5,019 Statutory deposit with Bank Negara Malaysia , ,678 Statutory deposit with LOFSA 100 Property, plant and equipment , , Total assets 18,507,972 16,891,527 1,274,315 1,231, Liabilities, shareholders funds and Takaful funds Liabilities Deposits from customers 13 13,238,227 11,809,842 Deposits and placements of banks and other financial institutions 14 1,352, ,192 Obligations on securities sold under repurchase agreements 191,900 Bills payable 86,471 79,523 Other payables , ,937 19, Provision for zakat and taxation 17 10,251 11, Deferred tax 18 6,947 7,027 15,084,055 13,251,752 20,

79 GROUP COMPANY Note RM 000 RM 000 RM 000 RM 000 Liabilities, shareholders funds and Takaful funds (cont d) Shareholders funds Share capital , , , ,965 Reserves 523,572 1,018, , ,155 1,086,537 1,581,922 1,254,060 1,231,120 Takaful funds Family Takaful Fund 22 1,940,993 1,747,878 General Takaful Fund , ,686 2,172,424 1,941,564 Minority interests 164, ,289 Total liabilities, shareholders funds, Takaful funds and minority interest 18,507,972 16,891,527 1,274,315 1,231,409 Commitments and contingencies 36 4,594,983 3,408, The financial statements were approved and authorized for issue by the Board of Directors on 20 October The notes set out on pages 85 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

80 INCOME STATEMENTS for the year ended 30 June 2005 GROUP COMPANY Note RM 000 RM 000 RM 000 RM 000 Income derived from investment of depositors funds , ,918 Allowance for losses on financing 25 (700,850) (134,475) Allowance for diminution in value of investment securities (11,400) (7,600) Profit equalisation reserve (7,148) (25,832) Total distributable income 33, ,011 Income attributable to depositors 26 (270,570) (245,249) (Loss)/income attributable to shareholders (237,273) 228,762 Income derived from investment of shareholders funds , ,721 76,875 54,884 Total net income 85, ,483 76,875 54,884 Personnel expenses 28 (203,617) (159,776) Other overhead expenses 29 (253,187) (116,236) (1,496) (1,069) Depreciation (29,547) (58,425) 80 Operating (loss) / profit (400,743) 119,046 75,379 53,815 Share of profit /(losses) in associated companies 254 (570) (Loss) / profit before zakat and taxation (400,489) 118,476 75,379 53,815 Zakat (7,295) (6,333) (574) (199) Tax expense 30 (36,795) (18,248) (17,412) (15,231) (Loss) / profit after zakat and taxation (444,579) 93,895 57,393 38,385 Minority interests (12,272) (8,147) Net (loss)/ profit for the year (456,851) 85,748 57,393 38,385 (Loss)/ earnings per share (sen) 31 (81.15) Dividend per ordinary share net (sen) No separate disclosure of fully diluted earnings per share has been made for reasons described in Note 31. The notes set out on pages 85 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

81 STATEMENTS OF CHANGES IN EQUITY for the year ended 30 June 2005 Non-distributable Distributable Retained profits/ Share Share Reserve Translation Capital (Accumulated) capital premium fund reserve reserve losses Total Note RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 Group At 1 July , , ,919 4,914 9, ,999 1,533,014 Currency translation differences* (1,971) (1,971) Net profit for the year 85,748 85,748 Transfer to Reserve Fund 36,614 (36,614) Dividend 2003 final 32 (34,453) (34,453) Dilution arising from issuance of shares by a subsidiary (416) (416) At 30 June , , ,533 2,943 9, ,264 1,581,922 Currency translation differences* (1,232) (1,232) Net loss for the year (456,851) (456,851) Dividend 2004 final 32 (34,453) (34,453) Dilution arising from issuance of shares by a subsidiary (2,849) (2,849) At 30 June , , ,533 1,711 6,863 (281,040) 1,086, *Net (loss)/ gain not recognized in the income statements. The Reserve Fund is maintained in compliance with the provisions of the Islamic Banking Act, 1983 and is not distributable as cash dividends. The Capital Reserve Fund arose out of the issuance of bonus issue in a subsidiary and is not distributable as cash dividends. The notes set out on pages 85 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

82 STATEMENTS OF CHANGES IN EQUITY for the year ended 30 June 2005 (cont d) Nondistributable Distributable Share Share Retained capital premium profits Total Note RM 000 RM 000 RM 000 RM 000 Company At 1 July , ,157 68,066 1,227,188 Net profit for the year 38,385 38,385 Dividend 2003 final 32 (34,453) (34,453) At 30 June , ,157 71,998 1,231,120 Net profit for the year 57,393 57,393 Dividend 2004 final 32 (34,453) (34,453) At 30 June , ,157 94,938 1,254, The notes set out on pages 85 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

83 CASH FLOW STATEMENTS or the year ended 30 June 2005 GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Cash flows from operating activities (Loss)/ Profit before zakat and taxation (400,489) 118,476 75,379 53,815 Adjustments for: Accretion of discount less amortization of premium (26,974) (17,838) Allowance for doubtful debts 84,500 Allowance for losses on financing 700, ,475 Depreciation 29,547 58,425 Dividend income (5,489) (11,091) (57,663) (41,351) Gain on disposal of property, plant and equipment (149) Loss/(Gain) disposal of investments (net) 80,665 (18,783) (12,117) (2,118) Impairment losses of property, plant quipment 918 Property, plant and equipment written off 844 Share of losses in associated companies (254) 570 Write back of allowance for diminution in value of investments (746) (746) (262) Operating profit before working capital changes 463, ,085 4,853 10,084 Changes in working capital: Statutory deposits with Accountant General Malaysia 103 Statutory deposits with Bank Negara Malaysia (55,789) 17,591 Statutory deposit with LOFSA (100) Other receivables 3,352 17,080 (97,961) 266 Bills receivable 2,995 (3,275) Financing of customers (1,135,527) (1,043,967) Obligations on securities sold under repurchase agreement (191,900) Deposits from customers 1,428,385 (632,286) Bills payable 6,949 5,550 Deposits and placements of banks and other financial institutions 557,727 8,266 Other payables (excluding tax and zakat) 32,302 58,547 19,606 (192) Family Takaful fund 193, ,444 General Takaful fund 37,745 51, Cash generated from/(used in) operations 1,342,581 (1,008,690) (73,502) 10,158 Zakat paid (2,258) (4,703) (574) (199) Income taxes paid (37,183) (54,632) (16,840) (14,446) Net cash generated from/(used in) operating activities 1,303,140 (1,068,025) (90,916) (4,487)

84 CASH FLOW STATEMENTS or the year ended 30 June 2005 (cont d) GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Cash flows from investing activities Acquisition of shares in an associated company (4,097) (2,400) Acquisition of shares in a subsidiary company (100,000) (57,176) Proceeds from disposal of property, plant and equipment 8, Dividend received 3,952 7,986 57,663 41,351 Proceeds/(purchase) from sale of investment (net) (94,780) 580, ,928 (70,767) Purchase of property, plant and equipment (183,970) (52,185) Net cash (used in)/ generated from investing activities (76,596) 532, ,591 (88,992) Cash flows from financing activities Dividend paid (34,453) (34,453) (34,453) (34,453) Issuance of shares of a subsidiary to minority shareholders 10,918 18,975 Net used in financing activities (23,535) (15,478) (34,453) (34,453) Net increase/(decrease) in cash and cash equivalents 1,203,009 (551,079) (9,778) (127,932) Cash and cash equivalents at the beginning of year 2,309,184 2,861,933 14, ,133 Foreign exchange differences (1,004) (1,670) Cash and cash equivalents at the end of year 3,511,189 2,309,184 4,423 14, Cash and cash equivalents comprise: Cash and short term funds 2,877,390 1,492,008 4,423 14,201 Deposits and placements with financial institutions 633, ,176 3,511,189 2,309,184 4,423 14,201 The notes set out on pages 85 to 129 form an integral part of, and should be read in conjunction with, these financial statements.

85 NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies The following accounting policies are adopted by the Group and the Company and are consistent with those adopted in previous years. a. Basis of accounting The financial statements of the Group and of the Company are prepared on the historical cost basis except as disclosed in the notes to the financial statements and in compliance with the provisions of the Companies Act 1965, Bank Negara Malaysia Guidelines, applicable approved accounting standards in Malaysia and Shariah requirements. b. Basis of consolidation Subsidiaries are those enterprises controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control effectively commences until the date that control effectively ceases. Subsidiaries are consolidated using the acquisition method of accounting. A subsidiary is excluded from consolidation when either control is intended to be temporary if the subsidiary is acquired and held exclusively with a view of its subsequent disposal in the near future and it has not previously been consolidated or it operates under severe long term restrictions which significantly impair its ability to transfer funds to the Company. Subsidiaries excluded on these grounds are accounted for as investments. Under the acquisition method of accounting, the results of subsidiaries acquired or disposed during the year are included from the date of acquisition or up to the date of disposal. At the date of acquisition, the fair values of the subsidiaries net assets are determined and these values are reflected in the Group financial statements. The difference between the acquisition cost and the fair values of the subsidiaries net assets is reflected as goodwill or negative goodwill as appropriate. Intragroup transactions and balances and the resulting unrealized profits are eliminated on consolidation. Unrealized losses resulting from intragroup transactions are also eliminated unless cost cannot be recovered. 85 Minority interest is measured at the minorities share of the post-acquisition fair values of the identifiable assets and liabilities of the acquiree. c. Associates Associates are those enterprises in which the Group has significant influence, but not control, over the financial and operating policies. The consolidated financial statements include the total recognized gains and losses of associates on an equity accounted basis from the date that significant influence effectively commences until the date that significant influence effectively ceases. Unrealized profits arising on transactions between the Group and its associates which are included in the carrying amount of the related assets and liabilities are eliminated partially to the extent of the Group s interests in the associates. Unrealized losses on such transactions are also eliminated partially unless cost cannot be recovered. Goodwill on acquisition is calculated based on the fair value of net assets acquired. Negative goodwill is not amortized.

86 NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies (cont d) d. Financing, advances and other loans Financing Financing are stated after deducting the allowance for possible losses. Allowance for bad and doubtful financing Specific allowances are made for doubtful financing, which have been individually reviewed and specifically identified as bad and doubtful. A general allowance based on a percentage of the financing portfolio is also made. These percentages are reviewed annually in light of past experiences and prevailing circumstances and an adjustment is made to the overall general provision, if necessary. An uncollectible financing or portion of a financing classified as bad is written off after taking into consideration the realisable value of collateral, if any, when in the judgement of the management, there is no prospect of recovery. Allowance for bad and doubtful financing has been made in full compliance with the revised BNM GP3 (September 1998). Any allowance during the year is charged to the income statement. e. Dealing and investment securities Dealing securities 86 Dealing securities are marketable securities that are acquired and held with the intention of resale in the short term, and are stated at the lower of cost and market value. Transfer, if any, between dealing and investment securities are made at the lower of cost and market value. Investment securities Investment securities are securities that are acquired and held for yield or capital growth or to meet minimum liquid assets requirement pursuant to Section 16 of the Islamic Banking Act, 1983, and are usually held to maturity. Malaysian Government Investment Issues, Cagamas Islamic Bonds, other Government Islamic Securities, and Islamic Debt Securities and other investments are stated at cost adjusted for amortization of premium or accretion of discount to maturity dates. Allowance is made for diminution in value when such diminution in value is other than temporary. f. Other investments Long term investments in subsidiaries and associates are stated at cost in the Company, less impairment loss where applicable. For a subsidiary, Syarikat Takaful Malaysia Berhad ( STMB ), allowance for diminution in value of investment are charged directly to the respective takaful funds in the balance sheet, in accordance with the Bank Negara Malaysia ( BNM ) Guidelines. Subsequent increase in market value of the quoted investments is treated as a write back of the previous allowance for diminution in value of investments to the extent of the carrying amount of the quoted investments that would have been determined had no diminution in value had been recognized. A charge, based on 8% of the Takaful Funds surplus attributable to the participants and STMB after allocating management expenses, is made directly to the respective Takaful Fund revenue accounts, in accordance with BNM Guidelines. Allowance for diminution in value arising from the Shareholders Funds are charged to the income statement immediately.

87 g. Property, plant and equipment Freehold and long term leasehold land, building in progress, renovation work-in-progress and management information system development costs are stated at cost. All other property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Property, plant and equipment retired from active use and held for disposal are stated at the carrying amount at the date when the asset is retired from active use, less impairment losses, if any. Depreciation Long term leasehold land is not amortized. Leasehold land with tenure of less than 50 years is amortized in equal instalments over the period of the respective leases. Management Information System costs under development and all work-in-progress are not depreciated. The straight line method is used to write off the cost of the other assets over the term of their estimated useful lives at the following principal annual rates: Building improvements and renovations 16.7% Furniture, fixtures, fittings and equipment 16.7% 50% Motor vehicles 25% h. Impairment The carrying amount of the Group s assets, excluding deferred tax assets and financial assets (other than investments in subsidiaries and associates), are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset or the cash-generating unit to which it belongs exceeds its recoverable amount. Impairment losses are recognized in the income statement. The recoverable amount is the greater of the asset s net selling price and its value in use. In assessing value in use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. 87 An impairment loss is reversed only to the extent that the asset s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. The reversal is recognized in the income statement. i. Bills and other receivables Bills and other receivables are stated at cost less allowance for doubtful debts. j. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and short-term highly liquid investments that are readily convertible to known amounts of cash and which have an insignificant risk of changes in value. k. Bills and acceptances payable Bills and acceptances payable represent the Group s own bills and acceptances rediscounted and outstanding in the market. l. Liabilities Deposits from customers and deposits and placements of banks and financial institutions are stated at placement values.

88 NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies (cont d) m. Leases The Group accounts for its Ijarah leasing contracts as operating leases and Ijarah Muntahia Bittamlik as finance leases. n. Family Takaful Fund Included in family takaful fund is fund arising from: i) Family takaful; ii) Group family takaful; and iii) Family retakaful funds. The profit attributable to cedants represents the cedants share in the family retakaful surpluses and is distributable in accordance with the terms and conditions prescribed by the Group. The family takaful fund is maintained in accordance with the requirements of the Takaful Act 1984 and includes the amounts attributable to participants which represents the participants share of the return on the investments distributable in accordance with the terms and conditions prescribed by the Group. The surplus transferable from the family takaful fund to the income statement is based on the surplus determined by an annual actuarial valuation of the long term liabilities to the participants. Contributions income 88 Contributions from participants are accounted for on cash basis in accordance with Principles of Syariah as advised by the Group s Shariah Advisory Body. Unrealized income is deferred and receipts in advance are treated as liabilities in the balance sheet. Investment-linked business Investments of investment-linked business are stated at closing market prices. Any increase or decrease in value of these investments is taken into the investment-linked business revenue account. Unearned contribution reserve ( UCR ) The UCR of group family fund and family retakaful fund represents the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period. In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows: i) 1/365th method for all group family business within Malaysia ii) a pro-rata basis based on a time apportionment method for family retakaful business Provision for outstanding claims Claims and settlement costs that are incurred during the financial period are recognized when a claimable event occurs and/or the takaful operator is notified. Claims and provisions for claims arising on family and group family takaful certificates, including settlement costs, are accounted for using the case basis method and for this purpose, the benefits payable under a family takaful certificates are recognized as follows: i) maturity or other policy benefit payments due on specified dates are treated as claims payable on the due dates ii) death, surrender and other benefits without due dates are treated as claims payable, on the date of receipt of intimation of death of the participant or occurrence of contingency covered

89 o. General Takaful Fund Included in General Takaful fund is fund arising from: i) General Takaful; ii) Asean Takaful Group ( ATG ) retakaful pool; and iii) General retakaful funds. The general takaful underwriting results are determined for each class of takaful business after taking into account retakaful, commissions, unearned contributions, claims incurred and management expenses. The net surplus for general retakaful is determined after deducting retakaful, reserve for unearned retakaful contributions, net claims incurred and acquisition costs. The profit attributable to cedants represents the cedants share in the general retakaful surpluses and is distributable in accordance with the terms and conditions prescribed by the Group. Contributions income Contributions from participants are accounted for on cash basis in accordance with Principles of Syariah as advised by the Group s Shariah Advisory Body. Unrealized income is deferred and receipts in advance are treated as liabilities in the balance sheet. Unearned contributions reserve ( UCR ) The UCR represents the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period. In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows: i) 1/365th method for all general takaful business within Malaysia ii) 1/8th method for all classes of General Inward Takaful business iii) a pro-rata basis based on a time apportionment method for General Retakaful business 89 Provision for outstanding claims A liability for outstanding claims is recognized by the Group in respect of both direct takaful and inward retakaful business. The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries to settle the present obligation at the balance sheet date. Any difference between the current estimated cost and subsequent settlement is dealt with in the takaful revenue account for the Group in the year in which the settlement takes place. A provision is also made by the Group for the cost of claims, together with related expenses incurred but not reported at balance sheet date, using a mathematical method of estimation. p. Foreign currency i) Foreign currency transactions Transactions in foreign currencies are translated to Ringgit Malaysia at rates of exchange ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Ringgit Malaysia at the foreign exchange rates ruling at that date. Foreign exchange differences arising on translation are recognized in the income statement. Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost, are translated to Ringgit Malaysia at the foreign exchange rates ruling at the date of the transactions.

90 NOTES TO THE FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies (cont d) p. Foreign currency (cont d) ii) Financial statements of foreign operations The Group s foreign operations are not considered an integral part of the Company s operations. Accordingly, the assets and liabilities of foreign operations are translated to Ringgit Malaysia at exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated to Ringgit Malaysia at average exchange rates applicable throughout the year. Foreign exchange differences arising on translation are recognized directly in equity. The closing rates used in the translation of foreign currency monetary assets and liabilities and the financial statements of foreign operations are as follows: 1USD RM (2004: 1USD RM3.8000) 1Rupiah RM (2004: 1Rupiah RM0.0004) 1JPY RM (2004: 1JPY RM0.0351) 1SGD RM (2004: 1SGD RM2.2180) 1GBP RM (2004: 1GBP RM6.8850) 1AUD RM (2004: 1AUD RM2.6300) 1EURO RM (2004: 1EURO RM4.6050) 1SAR RM (2004: 1SAR RM1.0130) q. Income recognition 90 Income is recognized on an accrual basis except for income from takaful business and takaful contributions from participants which are recognized on a cash basis in accordance with the principles of Shariah as advised by the Group s Shariah Supervisory Council and as permitted by Bank Negara Malaysia. Unrealized profit and receipts in advance relating to takaful business are respectively deferred and treated as liabilities in the balance sheet. Income from financing is recognized on an accrual basis. Income on cash line, house and term financing is accounted for on an accrual basis by reference to the rest periods as stipulated in the financing agreement. Where an account is classified as non-performing, income is not recognized until it is realized on a cash basis. Financing income recognized prior to the non-performing classification is not clawed-back to the first day of default in conformity with Bank Negara Malaysia guidelines. Customers' accounts are classified as non-performing where repayments are in arrears for more than six months from the first day of default for financing, cash line and advances; and three months from the first day of default for trade bills, credit cards, bankers acceptances, trust receipts and other instruments of similar nature. Fee and other income recognition Financing arrangement, management and participation fees, underwriting commissions and brokerage fees are recognized as income based on contractual arrangements. Guarantee fee is recognized as income upon issuance of the guarantee. Fees from advisory and corporate finance activities are recognized net of service taxes and discounts on completion of each stage of the assignment. Dividend income from subsidiary and associated companies and other investments are recognized when the right to receive payment is established. r. Income tax Tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognized in the income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Temporary differences are not recognized for goodwill and the initial recognition of assets or liabilities that at the time of the transaction affects neither accounting nor taxable profit.

91 r. Income tax (cont d) The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet date. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. s. Zakat This represents business zakat. It is an obligatory amount payable by the Group to comply with the principles of Shariah. Zakat provision is calculated based on % of the net asset method. t. Profit Equalisation Reserve ( PER ) PER is a mechanism to reduce the fluctuations in the profit rates payable to the depositors. It is provided based on the Framework of the Rate of Return issued by Bank Negara Malaysia. The amount of PER is appropriated from and written back to the total gross income. PER is reflected under other liabilities of the Group. u. Employee benefits i) Short term employee benefits Wages, salaries and bonuses are recognized as expenses in the year in which the associated services are rendered by employees of the Group. Short term accumulating compensated absences such as paid annual leave are recognized when services are rendered by employees that increase their entitlement to future compensated absences, and short term non-accumulating compensated absences such as sick leave are recognized when absences occur. Where payment or settlement is deferred and the effect would be material, these amounts are stated at their present values. 91 ii) Defined contribution plans Obligations for contributions to defined contribution plans are recognized as an expense in the income statement as incurred. 2. Cash and Short Term Funds GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Cash and balances with banks and other financial institutions 426, ,130 4,423 14,201 Money at call and interbank placements with remaining maturity not exceeding one month 2,414,542 1,135,878 2,877,390 1,492,008 4,423 14, Deposits and Placements with Financial Institutions GROUP RM 000 RM 000 Licensed banks 633, ,176

92 NOTES TO THE FINANCIAL STATEMENTS 4. Dealing Securities GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Quoted securities: In Malaysia Quoted shares 43, ,255 15,749 13,527 Outside Malaysia Quoted shares 1,997 Unquoted securities: In Malaysia Bank Negara Negotiable Notes 50,845 79,491 Islamic Commercial Papers 149, ,231 Islamic debt securities 17,816 Short term Negotiable Islamic Debt certificate 485, ,846 49,713 Bankers acceptance 421, ,314 20,395 Unit trust ,151,789 1,957,927 15,749 83,635 Market value Quoted shares 44, ,083 15,749 13, Investment Securities GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Quoted securities: In Malaysia Amanah Saham Bank Islam 79,191 52,266 30,689 19,689 Quoted shares 305, ,119 Unquoted securities In Malaysia Malaysian Government Investment Issues 1,122, ,905 Unquoted shares 37,139 33,072 Islamic Debt Securities 2,168,527 1,980,848 87,236 Others 23,889 32,420 3,737,585 3,009,630 30, ,925

93 5. Investment Securities (cont d) GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Unquoted securities: Outside Malaysia Islamic Development Bank Unit Trust 1,350 1,350 Unquoted shares 28,109 28,109 29,459 29,459 Add: Dividend receivable 15,003 Less: Premium less discounts (105,759) (96,250) Less: Allowance for diminution in value of investment (85,164) (28,017) (5,507) (4,762) Total investment securities 3,591,124 2,914,822 25, ,163 Market value of quoted securities: In Malaysia Amanah Saham Bank Islam 57,565 39,145 25,099 14,928 Quoted shares 321, , Financing, Advances and Other Loans GROUP i) By type RM 000 RM 000 Cash line 27,808 34,779 Term financing House financing 2,630,495 2,381,694 Syndicated financing 364, ,274 Leasing receivables 80, ,467 Bridging financing 1,039, ,224 Personal financing 970, ,808 Other term financing 3,071,843 3,333,613 Staff financing 124, ,851 Credit cards 144, ,153 Revolving credit 1,505,035 1,684,363 Others 336, ,766 10,295,682 9,213,992 Less: Allowance for bad and doubtful financing: General (160,533) (131,337) Specific (896,680) (353,759) Income-in-suspense (193,071) (209,432) Add: Deferred allowance for bad and doubtful financing 167, ,710 Total net financing, advances and other loans 9,212,896 8,778,174

94 NOTES TO THE FINANCIAL STATEMENTS 6. Financing, Advaces and Other Loans (cont d) GROUP ii) By contract RM 000 RM 000 Bai Bithaman Ajil (deferred payment sale) 6,715,682 6,212,523 Ijarah (operating lease) 42, ,731 Ijarah Muntahia Bittamlik/AITAB (finance lease) 309,439 95,838 Mudharabah (profit sharing) 21,994 37,213 Murabahah(cost-plus) 1,927,568 1,818,057 Qard (benevolent loan) 835, ,232 Bai Al-Inah 142, ,793 Istisna 209,068 Others 91,668 40,605 10,295,682 9,213,992 GROUP iii) By type of customer RM 000 RM Domestic non-bank financial institutions 310, ,130 Domestic business enterprise 1,897,699 2,117,850 Small medium industries 1,238,297 1,124,887 Government 81,639 54,334 Individuals 5,620,214 4,654,892 Other domestic entities 53,261 58,254 Foreign entities 1,093, ,645 10,295,682 9,213,992 GROUP iv) By profit rate sensitivity RM 000 RM 000 Fixed rate House financing 2,648,670 2,556,236 Others 7,647,012 6,657,756 10,295,682 9,213,992

95 6. Financing, Advaces and Other Loans (cont d) GROUP v) By sector RM 000 RM 000 Agriculture, hunting, forestry and fishing 267, ,471 Mining and quarrying 14,105 14,375 Manufacturing 1,446,748 1,384,717 Electricity, gas and water 300, ,407 Construction 1,055,851 1,066,589 Real estate 48,241 95,760 Purchase of landed property: Residential 2,763,468 2,504,966 Non-residential 669, ,009 Wholesale, retail trade, restaurants and hotels 351, ,267 Transport, storage and communication 172, ,611 Finance, insurance and business services 186, ,790 Purchase of securities 578, ,765 Purchase of transport vehicles 1,312, ,170 Consumption credit 931, ,646 Community, social and personal services 64,368 68,188 Others 131, ,261 10,295,682 9,213,992 COMPANY RM 000 RM Subordinated Mudharabah financing 100,000 The amount refers to a subordinated Mudharabah financing facility granted to a subsidiary, Bank Islam Malaysia Berhad which is subordinated to all other liabilities and matures in year Non-performing Financing i) Movements in the non-performing financing, advances and other loans (including income receivable) RM 000 RM 000 At 1 July 1,463,745 1,233,300 Classified as non-performing during the year 1,165, ,253 Reclassified as performing during the year (136,724) (301,822) Amount recovered (150,658) (78,703) Amount written off (112,726) (98,146) Other adjustments (137) At 30 June 2,229,307 1,463,745 Less: Specific allowance (896,680) (353,759) Income-in-suspense (IIS) (193,071) (209,432) Net non-performing financing, advances and other loans 1,139, ,554 Ratio of net non-performing financing and other loans to total net financing and other loans 12.37% 10.26%

96 NOTES TO THE FINANCIAL STATEMENTS 7. Non-performing Financing (cont d) ii) Movements in the allowance and deferred allowance for bad and doubtful financing and income-in-suspense RM 000 RM 000 General allowance At 1 July 131, ,005 Allowance made during the year 29,196 4,186 Write-back made during the year (30,854) At 30 June 160, ,337 as % of total financing less SA and IIS 1.7% 1.5% Specific allowance At 1 July 353, ,841 Allowance made during the year 672, ,163 Amount recovered (36,362) (48,800) Amount written off (93,494) (83,416) Others (29) At 30 June 896, , Deferred Allowance for bad and doubtful financing At 1 July 258, ,358 Allowance deferred during the year 17,352 Amount amortized (72,498) (36,000) Offset against PER (12,114) Sharing of amount recovered from Danaharta (6,600) At 30 June 167, ,710 Income-in-suspense At 1 July 209, ,360 Allowance made during the year 63, ,657 Reversal clawback* (46,286) Amount recovered (14,215) (72,855) Amount written off (19,233) (14,730) At 30 June 193, ,432 * In prior years, financing income recognized prior to the non-performing classification is clawed back to the first day of default. However, in the current financial year, the Group changed the income recognition whereby financing income recognized prior to the non-performing classification is not clawed back to the first day of default, to conform with Bank Negara Malaysia Guidelines. As a result, such clawback of income has been reversed.

97 7. Non-performing Financing (cont d) iii) Non-performing financing by sector RM 000 RM 000 Agriculture, hunting, forestry and fishing 94,388 72,610 Mining and quarrying 5,366 4,873 Manufacturing 243, ,805 Electricity, gas and water 280,172 91,963 Construction 335, ,455 Real estate Purchase of landed property: Residential 291, ,033 Non-residential 196, ,940 Wholesales, retail trades, restaurants and hotels 70,831 47,748 Transport, storage and communication 96,175 92,069 Finance, insurance and business services 10,909 5,094 Purchase of securities 297,023 26,348 Purchase of transport vehicles 58,351 69,360 Consumption credit 140, ,193 Community social and personal services 22,096 19,770 Others 86,604 17,232 2,229,307 1,463, Other Receivables GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Retakaful of outstanding contribution 25,954 12,330 Retakaful companies 42,947 39,172 Stocks of foreign currencies 47,170 42,046 Sundry receivables 128, ,373 Due from associated company Clients and dealers debit balances 16,916 15,634 Deposits, prepayments and advances 15,815 14, Dividend receivable 9,896 1, , , ,055 Less: Allowance for doubtful debts* (100,256) (21,885) 177, , ,055 * Included in the allowance for doubtful debts for the year is RM74.9 million allowance on inter branch reconciling items that remain outstanding for more than 3 months.

98 NOTES TO THE FINANCIAL STATEMENTS 9. Investments in Subsidiary Companies COMPANY RM 000 RM 000 Quoted shares, at cost in Malaysia 106, ,986 Unquoted shares, at cost in Malaysia 1,016, ,784 1,123,770 1,023,770 Less: Accumulated impairment loss (510) (510) 1,123,260 1,023,260 Market value of quoted shares in Malaysia 119, ,964 The principal activities of the companies in the Group, all incorporated in Malaysia (unless otherwise stated) and the interest of BIMB Holdings Berhad are shown below: 98 Name of Company Principal activities Effective interests % % Bank Islam Malaysia Berhad Islamic banking Subsidiary of Bank Islam Malaysia Berhad Bank Islam (L) Ltd Offshore Islamic banking business BIMB Unit Trust Management Berhad Manager of Amanah Saham Bank Islam BIMB Foreign Currency Clearing Agency Sdn Bhd Foreign currency clearing house Al-Wakalah Nominees (Tempatan) Sdn Bhd Provides nominee services BIMB Trust Ltd Provides trust and related services BIMB International Islamic Trust (Labuan) Sdn Bhd Provides trust and related services Subsidiary of BIMB International Trust (Labuan) Sdn Bhd BIMB Offshore Company Management Dormant Services Sdn Bhd

99 9. Investments in Subsidiary Companies (cont d) Name of Company Principal activities Effective interests % % Syarikat Takaful Malaysia Berhad Family and general takaful business Subsidiary of Syarikat Takaful Malaysia Berhad ASEAN Retakaful International (L) Ltd^ Offshore retakaful business P.T. Syarikat Takaful Indonesia*# Holding company Subsidiary of P.T. Syarikat Takaful Indonesia P.T. Asuransi Takaful Umum*# General Takaful business P.T. Asuransi Takaful Keluarga*# Family Takaful business BIMB Securities (Holdings) Sdn Bhd Investment holding company Subsidiary of BIMB Securities (Holdings) Sdn Bhd BIMB Securities Sdn Bhd Stockbroking company Subsidiary of BIMB Securities Sdn Bhd BIMSEC Asset Management Sdn Bhd Provides investment management services BIMSEC Nominees (Tempatan) Sdn Bhd Provides nominee services BIMSEC Nominees (Asing) Sdn Bhd Provides nominee services Syarikat Al-Ijarah Sdn Bhd Leasing of assets Pembiayaan Perumahan Nasional Sdn Bhd Dormant BIMB Venture Capital Sdn Bhd Provides advisory, consultancy and related services in investment BIMB Musyarakah Satu Sdn Bhd Venture capital company and investment company BIMB Musyarakah Dua Sdn Bhd Venture capital company and investment company * Incorporated in Indonesia ^ Audited by a firm of auditors affiliated with KPMG Desa Megat & Co # Audited by a firm of auditors other than KPMG Desa Megat & Co The auditors report of P. T. Syarikat Takaful Indonesia ( STI ) group includes an emphasis of matter on the adverse economic condition in Indonesia. The note states that the adverse economic condition resulted from the lack of liquidity and volatile exchange and interest rates regime, which effects are the declining value of listed securities, tightening credit, delay in implementation of projects and oversupply of properties. At present, the economic condition has gradually recovered as shown by a reduction of interest rates and a relatively stable exchange rate. The note continues to state that the recovery of economic condition is dependent on the Government of Indonesia s monetary and fiscal policy, which is beyond management control.

100 NOTES TO THE FINANCIAL STATEMENTS 10. Investments in Associated Companies GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Unquoted shares, at cost 6,640 4,322 5,019 2,619 Right issues 2,400 2,400 Disposal (678) 5,962 6,722 5,019 5,019 Share of post-acquisition losses* (1,855) (2,211) 4,107 4,511 5,019 5,019 Represented by: Share of net tangible assets 4,427 4,593 Foreign exchange losses ,565 4,969 Negative goodwill (458) (458) 4,107 4,511 The principal activities of the associates, all incorporated in Malaysia (unless otherwise stated) and the interest of the Group are as follows: 100 Effective Paid-up ownership capital Name Principal activities interest 30 June RM 000 MySPEED.com Sdn Bhd e-business activities** ,250 Islamic Banking and Finance Institute Provides training and Malaysia Sdn Bhd consultancy services ,000 Arabian Malaysian Takaful Company Health and family Company# Takaful business ,067 * The Group s share of associated companies results has been equity accounted for up to the date of their latest available unaudited financial statements as at 30 June ** Including creating, implementing and operating e-business activities including e-commerce delivery services, multimedia related activities and other computerized or electronic services. # Incorporated in Bahrain 11. Statutory deposit with Bank Negara Malaysia The non-profit bearing statutory deposits are maintained with Bank Negara Malaysia in compliance with Section 37(1)(c) of the Central Bank of Malaysia Act, 1958 (revised 1994), the amount of which are determined as set percentages of total eligible liabilities.

101 12. Property, Plant and Equipment Computer Information Furniture, System **Land and fixtures Office Motor development building and fitting equipment vehicles cost Total Group RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 Cost At 1 July ,986 44,365 91,272 5, , ,666 Additions 126,349 22,813 8,451 1,361 24, ,970 Disposal (190) (747) (8,562) (9,499) Written off (5,004) (21,681) (26,685) Reclassifications (2,642) 2,642 Translation differences (188) (111) (15) (314) At 30 June ,501 69,709 99,533 6, , ,138 Accumulated depreciation At 1 July ,548 23,931 72,693 4, , ,131 Charge for the year 3,829 7,304 15, ,517 29,547 Disposal (127) (730) (857) Impairment loss Written off (4,163) (21,678) (25,841) Translation differences (15) (64) (7) (86) At 30 June ,117 31,171 88,556 4, , ,812 Net book value At 30 June ,384 38,538 10,977 1,346 51, , At 30 June ,438 20,434 18, , ,535 Depreciation charge for the year ended 30 June ,953 3,322 18,544 1,312 32,294 58,425

102 NOTES TO THE FINANCIAL STATEMENTS 12. Property, Plant and Equipment (cont d) Long term Buildings Freehold leasehold improvements land and land and Building in and building building progress renovations Total **Land and building RM 000 RM 000 RM 000 RM 000 RM 000 Cost At 1 July ,524 21,626 14,494 14, ,986 Additions 119,779 1,627 4, ,349 Written off (2) (839) (4,163) (5,004) Reclassifications 1,712 (4,354) (2,642) Translation differences (188) (188) At 30 June ,827 23,251 13,938 10, ,501 Accumulated depreciation At 1 July , ,486 26,548 Charge for the year 2, ,829 Impairment loss Written off (4,163) (4,163) Reclassifications (6) 6 Translation differences (15) (15) At 30 June ,846 1, ,029 27, Net book value At 30 June ,981 21,927 13,020 1, ,384 At 30 June ,190 20,898 14,494 1, ,438 Depreciation charge for the year ended 30 June , ,953 Long term leasehold land Company RM 000 RM 000 Cost At 1 July 2004/30 June The land is registered under the name of a subsidiary, Bank Islam Malaysia Berhad.

103 13. Deposits from Customers GROUP i) By type of deposit RM 000 RM 000 Non-mudharabah fund Demand deposits 2,709,216 2,367,383 Savings deposits 1,385,432 1,264,025 Negotiable instrument of deposits 747, ,026 Others 18,999 21,157 4,861,598 3,980,591 Mudharabah fund Savings deposits 433,229 1,221,564 General investment deposits 3,110,483 2,906,539 Specific investment deposits 4,823,817 3,692,048 Negotiable instrument of deposits 9,100 9,100 8,376,629 7,829,251 13,238,227 11,809,842 GROUP ii) By type of customer RM 000 RM 000 Government and statutory bodies 2,405,840 2,316,604 Business enterprises 4,832,010 4,669,371 Individuals 2,144,688 1,952,800 Others 3,855,689 2,871, ,238,227 11,809,842

104 NOTES TO THE FINANCIAL STATEMENTS 14. Deposits and Placements of Banks and Other Financial Institutions GROUP RM 000 RM 000 Mudharabah Fund: Licensed Islamic banks 1,094, ,500 Licensed banks 75, ,640 Other financial institutions 183, ,052 1,352, , Other Payables GROUP COMPANY RM 000 RM 000 RM 000 RM Unclaimed monies, withholding and service tax 31,234 11,180 Claims admitted or intimated but not paid 133, ,268 Profit payable to depositors and takaful participants 23,250 8,184 Advance takaful contributions 9,948 16,010 Due to retakaful 66,127 74,349 Clients and dealers credit balances 16,762 15,463 Trust accounts 1,204 2,539 Sundry payables 106,747 84, Profit equalization reserve (Note 16) 32,710 Amount due to subsidiaries 19,524 Others , ,090 19, Profit Equalization Reserve ( PER ) GROUP RM 000 RM 000 At 1 July 32,710 7,434 Provided in the financial year 25,939 47,103 Written back in the financial year (18,791) (21,271) Offset against deferred allowance (12,114) Transferred to profit payable to depositors (27,744) (556) At 30 June 32,710

105 17. Provision for Zakat and Taxation GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Zakat 6,730 4, Taxation 3,521 7, ,251 11, Deferred Tax The amounts, after appropriate offsetting, are as follows: GROUP RM 000 RM 000 Deferred tax liabilities 6,947 7,027 Deferred tax asset (19,320) (20,602) (12,373) (13,575) The recognized deferred tax assets and liabilities are as follows: GROUP RM 000 RM Property, plant and equipment capital allowances 17,697 11,629 Temporary difference on Al-Ijarah assets (4,539) 13,846 Unutilized tax losses (1,107) (1,496) Unabsorbed capital allowances (21,552) (20,364) Provisions (2,872) (17,190) (12,373) (13,575) No deferred tax asset has been recognized in respect of the following: GROUP RM 000 RM 000 Property, plant and equipment capital allowances (7) Provisions 519 Unabsorbed capital allowances 32 Unutilized tax losses 1,543 2,087 Deferred tax assets have not been recognized in respect of this item because it is not probable that future taxable profit will be available against which the Company can utilize the benefit. The Group has tax losses carried forward RM78,514,000 (2004 RM72,729,000) which give rise to the recognized and unrecognized deferred tax assets in respect of unutilized tax losses above.

106 NOTES TO THE FINANCIAL STATEMENTS 19. Share capital GROUP AND COMPANY RM 000 RM 000 Authorized: Ordinary shares of RM1.00 each 2,000,000 2,000,000 One Special Rights Redeemable Preference Share of RM1 * 2,000,000 2,000,000 Issued and fully paid: Ordinary shares of RM1.00 each 562, ,965 One Special Rights Redeemable Preference Shareof RM1 * 562, ,965 * Represents RM1 i) Special Rights Redeemable Preference Share ( Special Share ) confers the shareholder the right to redeem the Special Share at par at any time by serving written notice upon the Company, but no rights to participate in the capital or profits of the Company. During the year, the Company redeemed the Special Rights Redeemable Preference Share upon receiving written notice from the holder, Menteri Kewangan Diperbadankan Reserve Fund Reserve Fund is statutory reserves maintained in compliance with Section 15 of the Islamic Banking Act 1983 and is not distributable as cash dividends. 21. Retained Profits Subject to agreement by the Inland Revenue Board, the Company has sufficient Section 108 tax credit and tax exempt income to frank up to approximately RM49 million of its retained profits at 30 June 2005 if paid out as dividends.

107 22. Family Takaful Fund GROUP RM 000 RM 000 Participants Account (PA) As at 1 July 2004/ ,247,290 1,058,791 Elimination of intragroup investment (37,077) Add: Increase in PA 120, ,431 1,330,867 1,214,222 Profit attributable to participants 30,358 23,520 Allowance for diminution in value of investment 6,955 9,548 As at 30 June 1,368,180 1,247,290 Participants Special Account (PSA) As at 1 July 2004/ , ,505 Add: Increase in PSA 30,716 37, , ,258 Profit attributable to participants 13,198 2,803 Allowance for diminution in value of investment 873 9,740 As at 30 June 480, ,801 Group Family Takaful Fund (GFTA) As at 1 July 2004/ ,864 81,409 Profit attributable to participants 11,328 9, ,192 91,352 Movement in unearned reserves: As at 1 July 2004/ ,514 49,386 As at 30 June 2005/ ,653 57,514 8,139 8,128 Movement in Provision for diminution in value of investment As at 1 July 2004/ ,112 1,728 As at 30 June 2005/ ,758 4,112 1,646 2,384 As at 30 June 2005/ , ,864 Family Takaful fund 1,971,745 1,784,955 Elimination of intragroup investment (30,752) (37,077) Family Takaful fund as at 30 June 1,940,993 1,747,878

108 NOTES TO THE FINANCIAL STATEMENTS 23. General Takaful Fund GROUP RM 000 RM 000 Revenue account accumulated surplus* 65,444 50,925 Unearned contribution reserves 149, ,092 Allowance for diminution in value of investment 19,016 11,994 Elimination of intragroup investment (2,348) (2,325) General Takaful fund as at 30 June 231, ,686 * Revenue account accumulated surplus As at 1 July 2004/ ,925 38,619 Net surplus attributable to participants for the financial year 45,119 45,872 Profits paid to participants during financial year (30,600) (33,566) Balance as at 30 June 2005/ ,444 50, Income Derived from Investment of Depositors Funds GROUP RM 000 RM 000 Income derived from investment of: i) general investment deposits 235, ,349 ii) specific investment deposits 517, , , ,918

109 24. Income Derived from Investment of Depositors Funds (cont d) GROUP i) Income derived from investment of general investment deposits RM 000 RM 000 Financing income and hibah Financing, advances and other loans 192, ,620 Dealing securities 6,484 10,603 Investment securities 10,794 11,580 Money at call and deposit with financial institutions 9,206 6, , ,761 Amortization of premium less accretion of discounts 4,995 4, , ,594 Other dealing income 9,140 10, , ,639 Other operating income Net gain from sale of investment securities 1,529 2,892 Gross dividend income from securities: quoted in Malaysia quoted outside Malaysia 17 unquoted in Malaysia 322 1, , ,349 GROUP ii) Income derived from investment of specific investment deposits RM 000 RM 000 Financing income and hibah Financing, advances and other loans 411, ,243 Dealing securities 18,388 20,815 Investment securities 17,028 16,973 Money at call and deposit with financial institutions 27,898 12, , ,764 Amortization of premium less accretion of discounts 13,499 9, , ,252 Other dealing income 23,570 19,719 Balance brought forward 512, ,971 Other operating income Net gain from sale of investment securities 4,243 5,676 Gross dividend income from securities: quoted in Malaysia 63 quoted outside Malaysia 34 unquoted in Malaysia 867 2, , ,569

110 NOTES TO THE FINANCIAL STATEMENTS 25. Allowance for Losses on Financing GROUP RM 000 RM 000 Allowance for bad and doubtful financing: Specific allowance Made in the financial year* 656, ,944 Written back (36,362) (52,919) General allowance Made in the financial year 29,196 39,397 Written back (48,949) Deferred allowance for bad and doubtful financing 72,498 36,000 Bad debts and financing: Recovered (16,278) (998) 705, ,475 Allowance for amounts recoverable from Danaharta Made in the financial year (4,232) 700, ,475 * Included in the allowance for bad and doubtful financing for the year is RM398,537,000 allowance on non performing financing accounts relating to Labuan offshore operation. The deterioration in credit quality of certain financing portfolio is the result of the adoption of a more prudent risk management control framework and a more stringent provisioning requirements in line with Bank Negara Malaysia s guidelines (upon the conversion of the then Bank Islam (L) Ltd into an offshore branch) Income Attributable to Depositors GROUP RM 000 RM 000 Deposits from customers Mudharabah Fund 203,796 61,108 Non-Mudharabah Fund 42, ,033 Deposits and placements of banks and other financial institutions Mudharabah Fund 24,497 19, , ,249

111 27. Income Derived from Investment of Shareholders Funds GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Financing income and hibah Financing, advances and other loans 4,316 3,341 Dealing securities 111 Investment securities 42,647 18,012 5,265 6,852 Money at call and deposit with financial institutions 17,334 18,592 1,639 2,714 64,297 40,056 6,904 9,566 Amortization of premium less accretion of discounts 8,480 3,517 72,777 43,573 6,904 9,566 Other dealing income 3,151 2,465 75,928 46,038 6,904 9,566 Other operating income Net gain from sale of investment securities 39,474 2,177 12,117 2,065 Unrealized foreign exchange gain on foreign currency cash balances 4,378 3,599 Reversal of allowance for diminution in value 2,687 2,687 Takaful contributions less retakaful and reserve for unearned takaful contributions 129, ,902 Gross dividend income from securities: quoted in Malaysia 1,509 5, unquoted in Malaysia 1, unit trust 1, , Gross dividend income subsidiary companies 55,871 39, Balance carried forward 256, ,754 76,684 52,982 Fees and commission Processing fees 5,328 6,891 Commitment fees Guarantee fees 2,661 1,183 Others 8,073 9, , ,313 76,684 52,982 Other income Net gain from disposal of property, plant and equipment 149 Others 50,587 35, , , ,721 76,875 54,884

112 NOTES TO THE FINANCIAL STATEMENTS 28. Employee Information GROUP RM 000 RM 000 Salaries and wages 147, ,269 Allowance and bonuses 20,940 11,922 Others 35,065 23, , ,776 The number of employees of the Group (including Executive Director) at the end of the year was 5,004 (2004 4,515). Staff costs include contributions to the Employees Provident Fund of RM19 million (2004 RM22 million). Share option plan The Company offers vested share options over ordinary shares to Executive Directors and all employees of the Company who have been confirmed in writing and are in the employment of the Company. The balance in the number of shares options held by employees are as follows: GROUP RM 000 RM 000 Outstanding at 30 June 50,913 50, Details of share options granted during the period: Expiry date 21 August 2007 Exercise price per ordinary share (RM) Aggregate proceeds if shares are issued (RM) 59,044,000 Terms of the options outstanding at 30 June 2005: Expiry date Exercise price Number 21 August 2007 RM ,868, August 2007 RM2.43 5,044,000 50,912,500

113 29. Other Overhead Expenses GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Included in other overhead expenses are the following: Allowance for diminution in value of investment Allowance for doubtful debts 84,500 Auditors fees Audit work Non-audit work Directors remuneration 825 1, Impairment loss on property, plant and equipment Property, plant and equipment written off Rental of premises 17,492 16, Tax Expense GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Current tax expense 32,156 43,059 17,823 14,929 Under/(over) provision in respect of prior years 3,482 (16,699) (411) ,638 26,360 17,412 15,231 Deferred tax expense: Origination and reversal of temporary difference 1,157 (8,112) 36,795 18,248 17,412 15,231 Reconciliation of effective tax rate (Loss)/ profit before taxation (400,489) 118,476 75,379 53,815 Income tax using Malaysian tax rates (112,137) 33,173 21,106 15,068 Non taxable income (5,999) (769) (3,428) (752) Non-deductible expenses 153,940 4, Effect of different tax rates (5,279) (4,382) Deferred tax assets not recognized 2,080 Other items 708 2, ,313 34,947 17,823 14,929 Under/(over) provision in prior years 3,482 (16,699) (411) 302 Tax expense 36,795 18,248 17,412 15,231

114 NOTES TO THE FINANCIAL STATEMENTS 31. (Loss)/ Earnings Per Share Group Basic earnings per share ( Basic EPS ) Basic EPS of the Company is calculated by dividing the net profit for the year by the number of ordinary shares in issue during the year RM 000 RM 000 Net (loss)/ profit for the year (456,851) 85,748 Number of ordinary shares 562, ,965 Basic (loss)/ earnings per share (sen) (81.15) Diluted earnings per share The assumed conversion of ESOS in the current year has an anti-dilutive effect on the earnings per share of the Group and is therefore not disclosed. 32. Dividends GROUP AND COMPANY RM 000 RM 000 Ordinary Final paid: % per share less tax ( % per share less tax) 34,453 34,453 The Board of Directors recommended a final dividend of 2.5% less tax totalling RM10,133,370, subject to approval from shareholders, which has not been accounted for in the financial statements.

115 33. Related Parties Controlling related party relationships are as follows: i) Its subsidiary companies as disclosed in Note 9 ii) Significant shareholders of the Company GROUP RM 000 RM 000 Rental of premises paid to institutional shareholders: Kumpulan Wang Simpanan Pekerja 218 Lembaga Tabung Haji 1,307 1,058 Majlis Ugama Islam Sabah Brokerage fees paid by institutional shareholders: Amanah Saham Bumiputra 914 1,012 Kumpulan Wang Simpanan Pekerja Lembaga Tabung Haji Permodalan Nasional Berhad Overriding commission payable by a subsidiary to a Director, Dato Dr. Abdul Halim Haji Ismail 111 A Director is authorized to trade, under his own discretion, though a trading account co-owned by the Director and a subsidiary. Under the arrangement, any trading loss is borne by the Director, whereas any gain is equally shared by the Director and the subsidiary. Transactions entered into through this trading account are as follows: GROUP RM 000 RM Sales of securities 243 Purchase of securities The Directors are of the opinion that all the transactions have been entered into in the normal course of business and have been established under negotiated terms. 34. Directors and Shariah Supervisory Council Members Remuneration (a) i) Aggregate remuneration of all Directors for the group and the Company categorized into appropriate components are as follows: GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Executive Director: Salaries, bonuses and EPF contributions* Benefits-in-kind* * The salaries, other emoluments and benefits-in-kind amounted to RM576,000 (2004 RM853,000) are received in their capacity as the Executive Directors of certain subsidiaries.

116 NOTES TO THE FINANCIAL STATEMENTS 34. Directors and Shariah Supervisory Council Members Remuneration (cont d) (a) i) Aggregate remuneration of all Directors for the group and the Company categorized into appropriate components are as follows (cont d): GROUP COMPANY RM 000 RM 000 RM 000 RM 000 Non-Executive Directors: Fees and allowances Total 986 1, Total (excluding benefits-in-kind) 934 1, GROUP COMPANY RM 000 RM 000 RM 000 RM 000 ii) Shariah Supervisory Council (b) The number of Directors of the Company whose remuneration fall within the following bands: Number of Non-Executive Director Below RM50, RM100,001 to RM350, RM350,000 to RM400,000 1 Total Segmental Information The inter-segment transactions have been entered into in the normal course of business and have been established under negotiated terms. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and expenses. The Group operates predominantly in Malaysia and accordingly, information by geographical location on the Group s operation is not presented. Segment information is presented in respect of the Group s business segments.

117 35. Segmental Information (cont d) Business segments The Group comprises the following main business segments: Banking Takaful Others Islamic banking and provision of related services. Underwriting of family and general Islamic insurance ( takaful ). Investment holding, currency trading, ijarah financing, stockbroking. Banking Offshore Domestic Takaful Others Elimination Consolidated 2005 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 Business segments Revenue from external customers 59, , ,140 64,305 1,075,576 Inter-segment revenue 8,340 33,967 61,780 (104,087) Total revenue 59, , , ,085 (104,087) 1,075,576 Segment result Operating (loss)/ profit (496,133) (30,552) 32, ,629 (12,972) (400,743) Finance costs (8,083) 8,083 Share of profit of associates 312 (58) 254 Zakat (2,349) (3,542) (1,404) (7,295) Tax expense (25,509) (3,442) (23,540) 15,696 (36,795) Minority interests 2,000 (14,272) (12,272) 117 Net (loss)/ profit for the year (496,133) (58,410) 27,613 73,602 (3,523) (456,851) Segment assets 1,496,531 14,352,479 2,772,999 1,604,127 (1,722,271) 18,503,865 Investment in associates 1, ,158 (3,430) 4,107 Total assets 1,496,531 14,354,379 2,773,478 1,609,285 (1,725,701) 18,507,972 Segment liabilities 1,893,909 13,226, , ,688 (488,287) 15,084,055 Capital expenditure 19, ,993 21, ,970 Depreciation and amortization 18,266 10, ,547

118 NOTES TO THE FINANCIAL STATEMENTS 35. Segmental Information (cont d) Banking Offshore Domestic Takaful Others Elimination Consolidated 2004 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 Business segments Revenue from external customers 45, ,711 89,425 49, ,639 Inter-segment revenue 10,659 33,810 46,252 (90,721) Total revenue 45, , ,235 96,022 (90,721) 866,639 Segment result Operating (loss)/ profit (15,705) 98,298 23,149 51,869 (38,565) 119,046 Finance costs (42) (7,763) 7,805 Share of loss of associates (44) (526) (570) Zakat (4,834) (1,066) (433) (6,333) Tax expense (18,373) 2,603 (13,879) 11,401 (18,248) Minority interests (535) (7,612) (8,147) Net (loss)/ profit for the year (15,705) 75,091 24,065 29,794 (27,497) 85,748 Segment assets 1,689,518 12,956,614 2,425,473 1,536,408 (1,720,997) 16,887,016 Investment in associates 1, ,019 (3,349) 4,511 Total assets 1,689,518 12,958,514 2,426,414 1,541,427 (1,724,346) 16,891,527 Segment liabilities 1,642,451 11,795, , ,706 (573,036) 13,251, Capital expenditure ,219 19, ,185 Depreciation and amortization ,928 6,735 31,253 58, Commitments and Contingencie s Group In the normal course of business, a subsidiary, Bank Islam Malaysia Berhad make various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. Risk Weighted Exposure arising from the commitments and contingencies of this subsidiary as at 30 June are as follows: Credit Credit Principal equivalent Principal equivalent amount amount* amount amount* RM 000 RM 000 RM 000 RM 000 Direct credit substitutes 380, , , ,803 Transaction-related contingent items 396, , , ,741 Short term self-liquidating trade-related contingencies 1,390, ,062 1,064, ,948 Other assets sold with recourse and commitments with certain drawdown Obligations under underwriting agreement 70,000 35,000 75,000 37,500 Foreign exchange related contracts less than one year 720,034 14, ,690 2,994 Miscellaneous 1,637, ,707 1,338, ,162 Total 4,594,983 1,389,841 3,408,476 1,603,267 * The credit equivalent amount is arrived at using the credit conversion factor as per Bank Negara Malaysia guidelines.

119 36. Commitments and Contingencie s Group (cont d) In the normal course of business, a subsidiary, Bank Islam Malaysia Berhad make various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. Risk Weighted Exposure arising from the commitments and contingencies of this subsidiary as at 30 June are as follows: Credit Credit Principal equivalent Principal equivalent amount amount* amount amount* RM 000 RM 000 RM 000 RM 000 Foreign exchange contracts Forward contracts 400,299 8,006 38, Others 319,735 6, ,601 2,232 Total 720,034 14, ,690 2,994 Foreign exchange related contracts are subject to market risk and credit risk. Market risk Market risk is the potential change in value caused by movement in market rates or prices. The contractual amounts stated above provide only a measure of involvement in these types of transactions and do not represent the amounts subject to market risk. Exposure to market risk may be reduced through offsetting on and off-balance sheet positions. Credit risk Credit risk is a risk that a counterparty will be unable to meet the terms of a contract in which the Group has a gain position Profit Rate Risk The Group is exposed to various risks associated with the effects of fluctuations in the prevailing levels of market profit rates on its financial position and cash flows. The assets and liabilities at carrying amount are categorized by the earlier contractual repricing or maturity dates. Up to 6 > 6-12 < 1-5 Over 5 Non-profit Effective months months years years sensitive Total profit rate As at 30 June 2005 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 % Assets Cash and short-term funds 2,877,390 2,877, Deposits and placements with banks and other financial institutions 43, , ,025 1, , Dealing securities 1,151,789 1,151, Investment securities 91,532 42,090 1,178,564 2,278,938 3,591, Financing, advances and other loans 1,842, ,289 1,381,934 3,512,041 1,555,053 9,212, Other assets 1,040,974 1,040, ,007,065 1,448,157 2,664,523 5,792,200 2,596,027 18,507,972

120 NOTES TO THE FINANCIAL STATEMENTS 37. Profit Rate Risk (cont d) Up to 6 > 6-12 < 1-5 Over 5 Non-profit Effective months months years years sensitive Total profit rate As at 30 June 2005 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 % Liabilities Deposits from customers 6,518, , ,440 1,308,926 4,772,821 13,238, Deposits and placements of banks and other financial institutions 1,352,919 1,352, Bills and acceptance payable 86,472 86, Other payables 406, , Total liabilities 7,958, , ,440 1,308,926 5,179,258 15,084,055 Equity 1,086,537 1,086,537 Takaful funds 2,172,424 2,172,424 Minority interests 164, ,956 Total liabilities, equity, Takaful funds and minority interests 7,958, , ,440 1,308,926 8,603,175 18,507, On-balance sheet profit sensitivity gap (1,951,003) 1,141,794 2,333,083 4,483,274 Off-balance sheet profit sensitivity gap 1,390, ,034 2,484,641 Total profit sensitivity gap (560,695) 1,861,828 4,817,724 4,483,274 Up to 6 > 6-12 < 1-5 Over 5 Non-profit Effective months months years years sensitive Total profit rate As at 30 June 2004 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 % Assets Cash and short-term funds 1,295, ,558 1,492, Deposits and placements with banks and other financial institutions 15, , ,850 3, , Dealing securities 1,865,462 92, ,957, Investment securities 91,532 42,090 1,178,564 1,602,636 2,914, Financing, advances and other loans 1,755, ,817 3,580,669 1,316,726 1,247,328 8,778, Other assets 931, , ,023,092 1,705,604 4,865,083 2,922,442 2,375,306 16,891,527

121 37. Profit Rate Risk (cont d) Up to 6 > 6-12 < 1-5 Over 5 Non-profit Effective months months years years sensitive Total profit rate As at 30 June 2004 RM 000 RM 000 RM 000 RM 000 RM 000 RM 000 % Liabilities Deposits from customers 4,668,490 1,827, , ,067 4,307,179 11,809, Deposits and placements of banks and other financial institutions 795, , Obligations on securities sold under repurchase agreements 191, ,900 Bills and acceptance payable 79,523 79, Other payables 375, , Total liabilities 5,735,105 1,827, , ,067 4,682,474 13,251,752 Equity 1,581,922 1,581,922 Takaful funds 1,941,564 1,941,564 Minority interests 116, ,289 Total liabilities and equity 5,735,105 1,827, , ,067 8,322,249 16,891,527 On-balance sheet profit sensitivity gap (712,013) (122,206) 4,736,789 2,044,375 Off-balance sheet profit sensitivity gap 1,064, ,809 1,876, Total profit sensitivity gap 352,727 27,603 6,612,795 2,044,375

122 NOTES TO THE FINANCIAL STATEMENTS 38. Liquidity Risk The maturities of on-balance sheet assets and liabilities as well as other off-balance sheet assets and liabilities, commitments and counter-guarantees are important factors in assessing liquidity of the reporting institution. The table below provides analysis of assets and liabilities into relevant maturity tenures based on their behavioural profile: Up to 6 > 6-12 < 1-5 Over 5 months months years years Total As at 30 June 2005 RM 000 RM 000 RM 000 RM 000 RM 000 Assets Cash and short-term funds 2,877,390 2,877,390 Deposits and placements with banks and other financial institutions 43, , ,025 1, ,799 Dealing securities 1,151,789 1,151,789 Investment securities 91,532 42,090 1,178,564 2,278,938 3,591,124 Financing, advances and other loans 1,842, ,289 1,381,934 5,067,095 9,212,896 Other assets 614,837 25, ,433 1,040,974 Total assets 6,621,901 1,448,157 2,690,227 7,747,687 18,507, Liabilities Deposits from customers 11,291, , ,440 1,308,926 13,238,227 Deposits and placements of banks and other financial institutions 1,352,919 1,352,919 Bills and acceptance payable 86,471 86,471 Other payables 406, ,438 Total liabilities 13,137, , ,440 1,308,926 15,084,055 Equity 1,086,537 1,086,537 Takaful funds 2,172,424 2,172,424 Minority interests 164, ,956 Total liabilities, equity, Takaful funds and minority interests 13,137, , ,440 4,732,843 18,507,972 Off-balance sheet liabilities Commitments & contingencies 1,390, ,034 2,484,641 4,594,983 Net maturity mismatch (7,905,733) 421,760 (125,854) 3,014,843 (4,594,983)

123 38. Liquidity Risk (cont d) Up to 6 > 6-12 < 1-5 Over 5 months months years years Total As at 30 June 2004 RM 000 RM 000 RM 000 RM 000 RM 000 Assets Cash and short-term funds 1,492,008 1,492,008 Deposits and placements with banks and other financial institutions 15, , ,850 3, ,176 Dealing securities 1,865,462 92,465 1,957,927 Investment securities 91,532 42,090 1,178,564 1,602,636 2,914,822 Financing, advances and other loans 1,755, ,817 1,316,726 4,827,997 8,778,174 Other assets 649,795 24, , ,420 Total assets 5,869,445 1,705,604 2,625,719 6,690,759 16,891,527 Liabilities Deposits from customers 8,975,669 1,827, , ,067 11,809,842 Deposits and placements of banks and other financial institutions 795, ,192 Obligations on securities sold under repurchase agreements 191, ,900 Bills and acceptance payable 79,523 79,523 Other payables 375, , Total liabilities 10,417,579 1,827, , ,067 13,251,752 Equity 1,581,922 1,581,922 Takaful funds 1,941,564 1,941,564 Minority interests 116, ,289 Total liabilities, equity, Takaful funds and minority interests 10,417,579 1,827, ,296 4,517,842 16,891,527 Off-balance sheet liabilities Commitments & contingencies 1,064, ,809 1,876,008 3,090,557 Net maturity mismatch (5,612,874) (272,015) 621,415 2,172,917 (3,090,557)

124 NOTES TO THE FINANCIAL STATEMENTS 39. Capital Commitments GROUP RM 000 RM 000 Property, plant and equipment Contracted but not provided for in the financial statements 11,933 24,710 Approved but not contracted for 14,781 3,341 Investments Contracted but not provided for in the financial statements 1,657 3, Capital Adequacy The capital adequacy ratio of the Group s banking operations is analysed as follows: GROUP RM 000 RM Tier-I capital Paid-up share capital 600, ,000 Share premium 331, ,375 Other reserves (201,194) 321,880 Total Tier-1 capital 730,181 1,153,255 Tier-II capital Irredeemable subordinated Mudharabah financing 100,000 General allowance for bad and doubtful debts 160, ,337 Total capital 990,714 1,284,592 Less: Investment in subsidiaries (13,075) (12,825) Capital base 977,639 1,271,767 Core capital ratio before proposed dividends 6.77% 10.6 % Risk-weighted capital ratio before proposed dividends 9.06% 11.6 % Core capital ratio after proposed dividends 6.77% 10.3 % Risk-weighted capital ratio after proposed dividends 9.06% 11.4 %

125 40. Capital Adequacy (cont d) The capital adequacy ratio of the Group s banking operations is analysed as follows: Risk Risk Principal weighted Principal weighted amount amount amount amount RM 000 RM 000 RM 000 RM 000 0% 3,844,975 2,513,128 10% 33,640 3,364 33,640 3,364 20% 1,841, ,398 1,895, ,102 50% 2,446,854 1,223,427 2,564,394 1,282, % 9,195,799 9,195,799 9,261,487 9,261,487 Total 17,363,256 10,790,988 16,268,158 10,926, Currency All amounts are stated in Ringgit Malaysia Financial Risk Management Policies The guidelines and policies adopted by the Group to manage the following risks that arise in the conduct of the business activities are as follows: Operational risk This risk is defined as the risk of loss arising from inadequate or failed internal processes, people and systems and external events. In managing this risk a dedicated team has been established. The team is responsible for identification, assessment and measurement, control framework, monitoring and reporting of operational risks. Credit risk Credit risk is the potential loss of revenue and principal in the form of specific allowances as a result of defaults by the customers or counter parties through the financing, dealing and investing activities. The primary exposure to credit risk arises from financing activities. Credit policy to govern the activities is rigorously being enhanced with the objectives of improving the quality of assets originated and preserved. This is in line with the on-going organisation transformation. Under the credit process flow, credit administration, credit control, review and analysis are performed independently of individuals involved in business origination. In addition, an independent evaluation of credit proposal before approval has been established for all proposal involving corporate and commercial. This function is performed by risk management division. Credit risk arising from dealing and investing activities are managed by the establishment of limits which includes, counter parties limits, permissible acquisition of not less than A-rated private entities instruments. Furthermore, the dealing and investing activities are monitored by an independent middle office unit.

126 NOTES TO THE FINANCIAL STATEMENTS 42. Financial Risk Management Policies (cont d) Underwriting risk Underwriting risk includes the risk of incurring higher claims costs than expected owing to the random nature of claims and their frequency and severity and the risk of change in legal or economic conditions or behavioural patterns affecting takaful pricing and conditions of takaful or retakaful cover. This may result in the takaful companies having either received too little contribution for the risk it has agreed to underwrite and hence has not enough funds to invest and pay claims, or claims that are in excess of those expected. The Group seeks to minimise underwriting risks with a balance mix and spread of business between classes of business and by observing underwriting guidelines and limits, conservative estimation of the claims provisions and high standards applied to security at retakaful. Market risk Market risk is the risk of loss arising from the adverse movement in the level of market pric-es or rates. The market risk components are foreign exchange risk, profit rate risk and equity risk. i) Foreign exchange risk This risk refers to the adverse exchange rate movements on foreign currency positions taken by the Group. Foreign currency open position is monitored against predetermined position limits and cut-loss limits. ii) Profit rate risk 126 This risk refers to volatility in the net profit income as a result of changes in the levels of profit rate and shift in the composition of the assets and liabilities. The profit rate risk, however, is self-mitigated when most of the financing assets are based on fixed rate while profits paid to depositors are not contractual. Profits paid to depositors/investors depend on the profit generated from the Group s activities and the profit sharing distribution. The Group is not exposed directly to interest rate risk because interest is prohibited under Islamic banking. The indirect interest rate risk exists arising from competition with other banks. This is managed by regularly reviewing the profit rates. iii) Equity risk Equity risk refers to the adverse movements in the price of equities on equity positions. Equity position is marked to market and monitored by the Risk Management Division and reported to the Risk Management Committee. Liquidity risk Liquidity risk relates to the risk arising mainly from withdrawals of deposits. In managing this, the Group is adopting the liquidity framework introduced by Bank Negara Malaysia which prescribes liquidity level based on the contractual and behavioural cash flow of assets, liabilities and off-balance sheet commitments.

127 43. Fair Value of Financial Assets and Liabilities Financial instruments comprise financial assets, financial liabilities and off-balance sheet instruments. Fair value is the amount at which the financial assets could be exchanged or a financial liability settled, between knowledgeable and willing parties in an arm s length transaction. The information presented herein represents the estimates of fair values as at the balance sheet date. Where available, quoted and observable market prices are used as the measure of fair values. Where such quoted and observable market prices are not available, fair values are estimated based on a range of methodologies and assumptions regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows and other factors. Changes in assumptions could materially affect these estimates and resulting fair value estimates. Fair value information for non-financial assets and liabilities are excluded as they do not fall within the scope of FRS 132, Financial Instruments: Disclosure and Presentation which requires the fair value information to be disclosed. The following table summarises the carrying and fair values of the financial assets and liabilities on the balance sheet date: Carrying value Fair value RM 000 RM 000 RM 000 RM 000 Financial Assets Cash and short-term funds 2,887,390 1,492,008 2,887,390 1,492,008 Deposits and placements with banks and other financial institutions 633, , , ,176 Dealing securities 1,151,789 1,957,927 1,151,789 1,957,927 Investment securities 3,591,124 2,914,822 3,779,644 2,960,492 Financing, advances and other loans 9,212,896 8,778,174 9,350,168 8,908, Financial liabilities Deposits from customers 13,238,227 11,809,842 13,238,227 11,809,842 Deposits and placements of banks and other financial institutions 1,352, ,192 1,352, ,192 Bills and acceptance payable 86,471 79,523 86,471 79,523 The fair value of the Group s financial instruments which include cash and short-term funds, deposits and placements with banks and other financial institutions and short-term borrowings are not materially sensitive to shifts in market interest rate because of the limited term to maturity of these instruments. As such, the carrying value of these financial assets and liabilities at balance sheet date approximate their fair values. The fair values are based on the following methodologies and assumptions: Deposits and placements with banks and other financial institutions For deposits and placements with financial instruments with maturities of less than six months, the carrying value is a reasonable estimate of fair values. For deposits and placements with maturities six months and above, the estimated fair values are based on discounted cash flows using prevailing money market profit rates at which similar deposits and placements would be made with financial instruments of similar credit risk and remaining period to maturity.

128 NOTES TO THE FINANCIAL STATEMENTS 43. Fair Value of Financial Assets and Liabilities (cont d) Dealing and investment securities The estimated fair values are generally based on quoted and observable market prices. Where there is no ready market in certain securities, fair values have been estimated by reference to market indicative yields or net tangible asset backing of the investee. Financing, advances and other loans Their fair value is estimated by discounting the estimated future cash flows using the prevailing market rates of loans with similar credit risks and maturities. The fair values are represented by their carrying value, net of specific allowance and income-in-suspense, being the recoverable amount. Deposits from customers For deposits from customers with maturities of less than six months, the carrying amounts are a reasonable estimate for their fair values. For deposits with maturities of six months or more, the fair values are estimated using discounted cash flows based on prevailing market rates for similar deposits from customers. Deposits and placements of banks and other financial institutions The estimated fair values of deposits and placements of banks and other financial institutions with maturities of less than six months approximate the carrying values. For deposits and placements with maturities of six months or more, the fair values are estimated based on discounted cash flows using prevailing money market profit rates for deposits and placements with similar remaining period to maturities. 128 Bills and acceptance payable The estimated fair values of bills and acceptance payables with maturity of less than six months approximate their carrying values. For bills and acceptance payable with maturities of six months or more, the fair values are estimated based on discounted cash flows using prevailing market rates for borrowings with similar risks profile.

129 44. Significant Event During the Year A subsidiary of the Group, Bank Islam Malaysia Berhad ( BIMB ) is undertaking an exercise to transfer a portfolio of Distressed Financial Assets ( Portfolio ), to an independent special purpose entity. The transaction will be transacted at the net book value of the portfolio transferred for cash consideration. For this purpose, the special purpose entity will issue debt securities to investors (to be identified later) to raise the necessary funds to acquire the Portfolio from BIMB. BIMB is currently in the midst of identifying specific financings to be included in the Portfolio and finalizing the structure for the exercise. This is subject to approvals from the relevant authorities. 45. Significant Events After the Balance Sheet Date a) BIMB had been served with a Writ of Summons and a Statement of Claims from Tan Sri Dato Abdul Khalid Ibrahim on 26 July The full effect on the provision on the financing has been made during the year and included in the allowance for bad and doubtful financing as per Note 6 of the financial statements. b) On 20 October 2005, the Company announced the following proposals: i) a proposed renounceable rights issue of up to 306,938,750 new ordinary shares of RM1.00 each ( Rights Shares ) at par, on the basis of one Rights Share for every two existing ordinary shares of RM1.00 each held ( Proposed Rights Issue ); and ii) a proposed restricted issue of up to 394,200,000 new Shares ( Restricted Issue Shares ) to strategic investors to be identified at an issue price to be determined later ( Proposed Restricted Issue ). The Proposed Rights Issue and the Proposed Restricted Issue (collectively known as the Proposals ) are inter-conditional with one another. 129 The Proposals are subject to approvals from the shareholders and the relevant authorities.

130 HARTANAH MILIK KUMPULAN BIMB HOLDINGS pada 30 Jun 2005 PROPERTIES OWNED BY BIMB HOLDINGS GROUP as at 30 June 2005 Hartanah Milik Bank Islam Malaysia Berhad Properties Owned by Bank Islam Malaysia Berhad Keluasan Tanah Keterangan Kawasan Bina Nilai Buku Bersih Tarikh Kegunaan (meter persegi) pada (RM) Pembelian Bil. Lokasi Description of Hak Milik Land Built-up Area Net Book Value Date of No. Location Existing Use Tenure (square meter) as at (RM) Acquisition 1. H.S. (D) Tanah tapak Pajakan 99 tahun 6,597 14,076, P.T. 45 Seksyen 87 bangunan berakhir Jalan Tun Razak Building site Leasehold for Kuala Lumpur 99 years expiring No. P.T & 1709 Tanah tidak Pajakan 99 tahun 4,443 70, H.S. (M) 2660 & 2661 digunakan berakhir Batu 5 1 /2 Vacant land Leasehold for Jalan Cheras 99 years expiring Kuala Lumpur Hartanah Syarikat Al-Ijarah Sdn Bhd Properties Owned by Syarikat Al-Ijarah Sdn Bhd 130 Tarikh Perjanjian Keterangan Usia Bangunan Nilai Buku Bersih Jualbeli Kegunaan Jenis (tahun) pada (RM) Date of Sales Bil. Lokasi Description of Hak Milik Age of Property Net Book Value & Purchase No. Location Existing Use Tenure (years) as at (RM) Agreement 1. No P.T. Lot & Rumah kedai Pegangan bebas 20 1,185, H.S. (D) 815 & tingkat Freehold Lot & 273 No 71 & 73 meter persegi Jalan Taman Selat untuk operasi Off Jalan Bagan Luar bank Butterworth 4-storey shop Pulau Pinang house 171 & 273 square meters for bank operation

131 Hartanah Milik Syarikat Takaful Malaysia Berhad Properties Owned by Syarikat Takaful Malaysia Berhad Usia Nilai Buku Bangunan Keluasan Tanah Bersih pada Keterangan (tahun) Kawasan Bina (RM) Tarikh Kegunaan Age of (kaki persegi) Net Book Value Pembelian No. Lokasi Description of Hak Milik Building Land Built-up as at Date of No. Location Existing Use Tenure (years) Area (square feet) (RM) Acquisition 1 Lot 11 & 12 Dua unit Rumah kedai/ Pegangan bebas 22 3,485/ 1,113, Plaza Melaka Pejabat 4 1 /2 tingkat Freehold 14,434 Jalan Hang Tuah Two units of 4 1 /2 storey Melaka Shophouse/Office 2. Lot 1 & 2 Tiga unit Kompleks Pajakan bandar 14 4,025/ 1,189, Kompleks Perniagaan/ 999 tahun 6,037 Perniagaan Fajar Pejabat 4 tingkat berakhir pada Tawau Three units of 4 storey Sabah Commercial 999 years town Complex/Office lease expiring No. 64 & 65 Dua unit Rumah kedai/ Pegangan bebas 19 3,095/ 423, Kompleks Jitra Pejabat 2 tingkat Freehold 6,935 Jalan Sungai Korok Two units of 2 storey Jitra Shophouse/Office Kedah Darul Aman 4. No. 23 Satu unit Rumah kedai/ Pajakan 99 tahun 10 1,539/ 454, Medan Istana 3 Pejabat 3 tingkat berakhir pada 4,255 Bandar Ipoh Raya One unit of 3 storey Ipoh Shophouse/Office 99 years lease Perak Darul Ridzuan expiring on No. 84, Batu 3 1 /4 Satu unit Rumah kedai/ Pegangan bebas 19 1,883/ 800, Jalan Gombak Pejabat 5 tingkat Freehold 8, One unit of 5 storey Kuala Lumpur Shophouse/Office 6. Lot 6966, Blok 59 Satu unit Rumah kedai/ Pajakan 60 tahun 10 1,312/ 341, Muara Tuang Pejabat 3 tingkat berakhir pada 3,750 Jalan Datok One unit of 3 storey Mohd Musa,94300 Shophouse/Office 60 years lease Kota Samarahan expiring on Sarawak Lot 54 & 55 Dua unit Rumah kedai/ Pajakan bandar 10 2,400/ 984, Bandar Wilayah Jasa Pejabat 3 tingkat 99 tahun berakhir 7,200 Jalan Bunga Raya Two units of 3 storey pada Lahad Datu Shophouse/Office 99 years town lease Sabah expiring on No. 24 Satu unit Rumah kedai/ Pegangan bebas 11 3,200/ 3,714, Jalan USJ 10/1B Pejabat 3 tingkat Freehold 9, Subang Jaya One unit of 3 storey Selangor Darul Ehsan Shophouse/Office 9. No. 15 & 17 Dua unit Rumah kedai/ Pegangan bebas 12 1,440/ 653, Jalan Kelibang Pejabat 2 tingkat Freehold 7,720 Langkawi Mall Two units of 2 storey Kuah Shophouse/Office Langkawi Kedah Darul Aman

132 HARTANAH MILIK KUMPULAN BIMB HOLDINGS pada 30 Jun 2005 PROPERTIES OWNED BY BIMB HOLDINGS GROUP as at 30 June 2005 Hartanah Milik Syarikat Takaful Malaysia Berhad Properties Owned by Syarikat Takaful Malaysia Berhad Usia Nilai Buku Bangunan Keluasan Tanah Bersih pada Keterangan (tahun) Kawasan Bina (RM) Tarikh Kegunaan Age of (kaki persegi) Net Book Value Pembelian No. Lokasi Description of Hak Milik Building Land Built-up as at Date of No. Location Existing Use Tenure (years) Area (square feet) (RM) Acquisition 10. No. 26 & 28 Dua unit Rumah kedai/ Pegangan bebas 7 3,293/ 1,014, Jalan Perda Barat Pejabat 3 tingkat (kosong) Freehold 8,840 Bukit Mertajam Two units of 3 storey Seberang Prai Shophouse/Office (vacant) Penang 11. Lot 2, 3 & 4 Tiga unit Rumah kedai/ Pegangan Bebas 10 4,817/ 2,720, Jalan Kulas Pejabat 3 tingkat Freehold 8, Kuching Three units of 3 storey Sarawak Shophouse/Office 12. No. 14 & 16 Dua unit Rumah kedai/ Pajakan 99 tahun 19 3,360/ 1,016, Jalan Ibrahim Pejabat 3 tingkat Lot 14 berakhir 8, Kota Tinggi Two units of 3 storey pada Johor Darul Ta zim Shophouse/Office Lot 16 berakhir pada years lease Lot 14 expiring on Lot 16 expiring on No. 312 Satu unit Rumah kedai/ Pegangan bebas 11 1,920/ 831, Jalan Bandar 13 Pejabat 4 tingkat Freehold 7,070 Taman Melawati One unit of 4 storey Kuala Lumpur Shophouse/Office 14. Lot 9046, Fasa 1A Satu unit Rumah kedai/ Pajakan 99 tahun 9 2,658/ 1,155, Jalan Haji Manan Pejabat 4 tingkat 99 years lease 9, Kluang One unit of 4 storey Johor Darul Ta zim Shophouse/Office 15. No. 64-D Satu unit bangunan Pegangan bebas 28 3,972/ 6,077, Leboh Bishop Pejabat 6 tingkat (9 level) Freehold 19, Pulau Pinang One unit of 6 storey Office building (9 level) 16. Darul Takaful Satu unit bangunan Pegangan bebas 17 35,192/ 59,954, Jalan Sultan Ismail Pejabat 20 tingkat Freehold 232, Kuala Lumpur One unit of 20 storey Office building 17. Lot 13 & 14 Dua unit bangunan Pajakan 999 tahun 11 2,504/ 1,743, Lazenda Pejabat 3 tingkat berakhir pada 7,200 Commercial Centre Two units of 3 storey Jalan Okk Abdullah Office building 999 years lease Labuan expiring on Lot 6967, Blok 59 Satu unit Rumah kedai/ Pajakan 60 tahun 10 1,312/ 348, Muara Tuang Pejabat 3 tingkat berakhir pada 3,750 Jalan Datok One unit of 3 storey Mohd Musa, Shophouse/Office 60 years lease Kota Samarahan expiring on Sarawak

133 Hartanah Milik Syarikat Takaful Malaysia Berhad Properties Owned by Syarikat Takaful Malaysia Berhad Usia Nilai Buku Bangunan Keluasan Tanah Bersih pada Keterangan (tahun) Kawasan Bina (RM) Tarikh Kegunaan Age of (kaki persegi) Net Book Value Pembelian No. Lokasi Description of Hak Milik Building Land Built-up as at Date of No. Location Existing Use Tenure (years) Area (square feet) (RM) Acquisition 19. Lot 28, 30 & 32 Tiga unit Rumah kedai/ Pajakan 99 tahun 18 4,447/ 3,311, Lot No. Jalan 2/3A Pejabat 4 tingkat berakhir pada 16, & 30 Pasar Borong Three units of 4 storey Selayang Shophouse/Office 99 years lease Lot No. 32 Selangor Darul Ehsan expiring on Lot Dua tingkat bangunan Pajakan 99 tahun 7 9,432/ 5,325, Level 1 & Mezzanine Pejabat 13 tingkat berakhir pada 8,206 Jalan Tan Hiok Nee Two floors of 13 storey Johor Bharu Office building 99 years lease Johor Darul Ta zim expiring on Lot 12680, Level 3 Satu tingkat bangunan Pajakan 99 tahun 7 9,432/ 3,273, Jalan Tan Hiok Nee Pejabat 13 tingkat berakhir pada 6, Johor Bharu One floor of 13 storey Johor Darul Ta zim Office building 99 years lease expiring on Lot 14(S1) & 15(S1) Dua unit Rumah kedai/ Pajakan 99 tahun 6 3,300/ 1,402, Indah Point Pejabat 4 tingkat berakhir pada 10,560 Section 12 (kosong) Pulau Indah Two units of 4 storey 99 years lease Industrial Park Shophouse/Office expiring on Klang (vacant) West Port Selangor Darul Ehsan No. 1 & 2 Dua unit Rumah kedai/ Pajakan 99 tahun 18 3,956/ 538, Jalan Kelicap Pejabat 2 tingkat berakhir pada 7,044 Taman Pekan Baru Two units of 2 storey Parit Buntar Shophouse/Office 99 years lease Perak Darul Ridzuan expiring on No. 46 & 47 Dua unit Rumah kedai/ Pegangan bebas 16 3,220/ 1,297, Darul Takaful Pejabat 4 tingkat Freehold 12,092 Jalan Rahmat Two units of 4 Storey Batu Pahat Shophouse/Office Johor Darul Ta zim 25. No. 180 & 181 Dua unit Rumah kedai/ Pegangan bebas 15 3,200/ 1,006, Jalan Tuan Hitam Pejabat 4 tingkat Freehold 12, Jerteh Two units of 4 storey Terengganu Darul Iman Shophouse/Office 26. Lot 82, 84 & 86 Tiga unit Rumah kedai/ Pegangan bebas 6 6,339/ 1,744, Jalan Rugbi 13/30 Pejabat 2 tingkat Freehold 11,309 Seksyen 13 Three units of 2 storey Shah Alam Shophouse/Office Selangor Darul Ehsan 27. No. 229, Jalan Shahab 2 Satu unit Rumah kedai / Pegangan bebas 9 1,400/ 278, Shahab Perdana Pejabat 2 1 /2 tingkat Freehold 3,570 Jalan Sultanah Sambungan One unit of 2 1 /2 storey Sambungan Shophouse /Office Alor Star Kedah Darul Aman

134 HARTANAH MILIK KUMPULAN BIMB HOLDINGS pada 30 Jun 2005 PROPERTIES OWNED BY BIMB HOLDINGS GROUP as at 30 June 2005 Hartanah Milik Syarikat Takaful Malaysia Berhad Properties Owned by Syarikat Takaful Malaysia Berhad Usia Nilai Buku Bangunan Keluasan Tanah Bersih pada Keterangan (tahun) Kawasan Bina (RM) Tarikh Kegunaan Age of (kaki persegi) Net Book Value Pembelian No. Lokasi Description of Hak Milik Building Land Built-up as at Date of No. Location Existing Use Tenure (years) Area (square feet) (RM) Acquisition 28. Lot No Satu unit Rumah kedai/ Pajakan 99 tahun 6 2,001/ 603, Jalan Dato Ulu Muar Pejabat 3 tingkat berakhir pada 3, Kuala Pilah One unit of 3 storey Negeri Sembilan Shophouse /Office 99 years lease Darul Khusus expiring on No. 45 Satu unit Rumah kedai/ Pajakan 99 tahun 5 3,200/ 1,995, Jalan Teluk Sisek Pejabat 4 tingkat berakhir pada 8, Kuantan One unit of 4 storey Pahang Darul Makmur Shophouse /Office 99 years lease expiring on Lot 21, 22, & 23 Tiga unit Rumah kedai/ Pajakan 99 tahun 5 4,195/ 1,034, Pusat Komersil Temerloh Pejabat 2 1 /2 tingkat berakhir pada 15, Temerloh Three units of 2 1 /2 storey Pahang Darul Makmur Shophouse/Office 99 years lease expiring on No. 2 & 4 Dua unit Rumah kedai/ Pajakan 99 tahun 18 6,383/ 1,174, Jalan 6C/7, Pejabat 2 tingkat berakhir pada 8,032 Selangor Darul Ehsan Two units of 2 storey Shophouse/Office 99 years lease expiring on Lot 14, Arab Malaysian Satu unit Rumah kedai/ Pegangan bebas 9 14,589/ 3,099, Business Centre Pejabat 6 tingkat Freehold 1,500 Jalan Pasar One unit of 6 storey Seremban Shophouse/Office Negeri Sembilan Darul Khusus 33. Tingkat Bawah & Satu tingkat bangunan Pegangan bebas 8 18,775/ 3,089, Mezzanine, Wisma Pejabat 8 1 /2 tingkat Freehold 1,744 Abrar International One floor of 8 1 /2 storey Lot 54, Seksyen 8 Office building Kota Bharu Kelantan Darul Naim 34. No. 29, Jalan Delima Satu unit Rumah kedai/ Pajakan 99 tahun 4 3,899/ 1,290, Pusat Perdagangan Pejabat 3 Tingkat berakhir pada 10,248 Pontian, Pontian One unit of 3 storey Johor Darul Ta zim Shophouse/Office 99 years lease expiring on Lot 11 & 12 Dua unit Rumah kedai/ Pajakan 99 tahun 20 2,800/ 1,019, Kompleks Seri Temin Pejabat 4 tingkat berakhir pada 11,020 Jalan Ibrahim Two units of 4 storey Sungai Petani Shophouse/Office 99 years lease Kedah Darul Aman expiring on Lot 1129 & 1130 Satu unit bangunan Pajakan kecil 45 tahun 3 3,600/ 6,682, Bangunan Darul Takaful Pejabat 12 tingkat berakhir pada 28,937 Jalan Sultan Ismail One unit of 12 storey Kuala Terengganu Office building 45 years sub lease Terengganu Darul Iman expiring on

135 Hartanah Milik Syarikat Takaful Malaysia Berhad Properties Owned by Syarikat Takaful Malaysia Berhad Usia Nilai Buku Bangunan Keluasan Tanah Bersih pada Keterangan (tahun) Kawasan Bina (RM) Tarikh Kegunaan Age of (kaki persegi) Net Book Value Pembelian No. Lokasi Description of Hak Milik Building Land Built-up as at Date of No. Location Existing Use Tenure (years) Area (square feet) (RM) Acquisition 37. No. 616 & 617 Dua unit bangunan Pajakan 99 tahun 13 4,498/ 653, Jalan Besar Pejabat 2 tingkat berakhir pada 8,685 Bandar Tampin Two units of 2 storey Negeri Sembilan Office building 99 year lease Darul Khusus expiring on No. 6, Jalan 6C/7 Satu unit Rumah kedai/ Pajakan 99 tahun 18 1,905/ 471, Bandar Baru Bangi Pejabat 2 tingkat berakhir pada 3,508 Selangor Darul Ehsan One unit of 2 storey Shophouse/Office 99 year lease expiring on Unit 3B/G Satu tingkat bangunan Pegangan bebas 4 6,409 4,100, Tingkat Bawah Pejabat 22 tingkat Freehold Blok 3B, Plaza Sentral One floor of 22 storey Jalan Stesen Sentral 5 Office building Kuala Lumpur 40. No. 26 & 27 Dua unit bangunan Pajakan 99 tahun 24 1,600/ 503, Jalan Tanjung Pasar Baru Pejabat 2 tingkat berakhir pada 4, Machang Two units of 2 storey Kelantan Darul Naim Office building 99 year lease expiring on No. 330 & 331 Dua unit bangunan Pajakan 99 tahun 23 3,200/ 1,274, Jalan Sultan Yahya Petra Pejabat 4 1 /2 tingkat berakhir pada 15, Kota Bharu Two units of 4 1 /2 storey Kelantan Darul Naim Office building 99 years lease expiring on Dataran Kewangan Dua unit Pegangan bebas 32 90,427.04/ 116,998, Darul Takaful bangunan Pejabat Freehold (Block Utama) 393,508 Jalan Sultan Sulaiman Blok Utama 25 tingkat Kuala Lumpur Blok Annex 29 tingkat (Block Annex) Two units of 32 Office building (Main Block) Main Block 25 storey 25 Annex Block 29 storey (Annex Block) 43. No Satu unit Rumah kedai/ Pajakan 99 tahun 9 2,800/ 832, Taman Samudera Pejabat 2 tingkat berakhir pada 5, Sri Manjung One unit of 2 storey Perak Darul Ridzuan Shophouse/Office 99 years lease expiring on No. 76A & 76 Dua unit bangunan Pegangan bebas 2 3,134/ 1,303, Pusat Perniagaan Pejabat 3 tingkat Freehold 18,304 Jalan Tupai Two units of 3 storey Taiping Office building Perak Darul Ridzuan 45. No. 10 & 11 Dua unit bangunan Pajakan 33 tahun 3 3,852.08/ 1,465, Jalan Sultan Yahya Petra Pejabat 3 tingkat berakhir pada 9, Kota Bharu Two units of 3 storey Kelantan Darul Naim Office building 33 years lease expiring on No Satu unit bangunan Pegangan bebas 3 8,715.60/ 3,668, Jalan Teluk Wanjah Pejabat 4 tingkat Freehold 18, Alor Star One unit of 4 storey Kedah Darul Aman Office building

136 STATISTIK PEGANGAN SAHAM seperti pada 30 September 2005 SHAREHOLDINGS STATISTICS as at 30 September 2005 Analisis Pegangan Saham Analysis of Shareholding Modal Saham Dibenarkan Authorized Share Capital Modal Saham Berbayar Paid-Up Capital Jenis Saham Class of Share Hak Mengundi Voting Rights RM2,000,000,000 RM562,965,000 Saham Biasa bernilai RM1.00 setiap satu Ordinary Share of RM1.00 each Satu (1) undi setiap Saham Biasa One (1) vote per Ordinary Share Analisis Berdasarkan Saiz Pegangan Saham Analysis By Shareholding Size Bilangan Bilangan Bilangan Pemegang % Pemegang Saham Saham Saham Dipegang % Saham Saiz Pegangan Saham No. of % of No. of % of Size of Shareholdings Shareholders Shareholders Shares Held Shareholdings 136 Kurang daripada 100/ Less than , , , ,001 10,000 2, ,941, , , ,959, ,001 ke atas /100,001 and above ,922, Melebihi 5%/ 5% and Above ,332, Jumlah/ Total 4, ,965, Senarai Pegangan Saham Para Pengarah List of Directors Shareholdings Pemegang Pemegang Saham Saham Langsung Tidak Langsung Nama-nama Direct % Indirect % Names Shareholdings % Shareholdings % 1. Dato Mohd Bakke Salleh 2. Prof. Dr. Muhamad Muda 3. Mohd Zin Idris 4. Dato Dr. Abdul Halim Haji Ismail 1, Datuk Dr. Elias Md Kadir Baba 6. Datuk Siti Maslamah Osman 7. Datuk Burhanuddin Ahmad Tajudin 8. Dato Noorazman A. Aziz 9. Salih Amaran Jamiaan

137 Senarai Tiga Puluh (30) Pemegang Saham Utama seperti pada 30 September 2005 List of Top Thirty (30) Shareholders as at 30 September 2005 Nama-nama Pegangan Saham % Names Shareholdings % 1. Permodalan Nasional Berhad 141,354, Lembaga Tabung Haji 136,388, Employees Provident Fund Board 35,989, Lembaga Tabung Haji 30,599, Amanah Raya Nominees (Tempatan) Sdn Bhd 30,000, A/C Skim Amanah Saham Bumiputera 6. Lembaga Tabung Angkatan Tentera 27,719, Mayban Nominees (Tempatan) Sdn Bhd 22,175, A/C Majlis Ugama Islam Sabah 8. Felda Marketing Services Sdn Bhd 16,631, Majlis Ugama Islam Sabah 9,178, Majlis Agama Islam Dan Adat Melayu Terengganu 6,936, Majlis Agama Islam Selangor 5,873, Majlis Agama Islam Negeri Pulau Pinang 5,544, Amin Baitulmal Johor 5,544, Majlis Amanah Rakyat 5,544, Majlis Ugama Islam Negeri Sembilan 5,100, Majlis Agama Islam Dan Adat Istiadat Melayu Kelantan 4,532, Bumiputra-Commerce Trustee Berhad 3,900, A/C Amanah Saham Darul Iman 18. Amanah Raya Nominees (Tempatan) Sdn Bhd 3,581, A/C Sekim Amanah Saham Nasional 19. Lembaga Pemegang-Pemegang Amanah Yayasan Negeri Sembilan 3,510, Affin Nominees (Tempatan) Sdn Bhd 3,299, A/C Majlis Ugama Islam Dan Adat Resam Melayu Pahang 21. Harakah Islamiah (HIKMAH) 3,056, Tabung Warisan Negeri Selangor 3,000, Pertubuhan Kebajikan Islam Malaysia (PERKIM) 2,242, Warisan Harta Sabah Sdn Bhd 1,910, Yayasan Kelantan Darulnaim 1,884, Majlis Agama Islam Dan Adat Melayu Perak Darul Ridzuan 1,848, Pertubuhan Kebajikan Islam Malaysia (PERKIM) 1,820, Majlis Agama Islam Wilayah Persekutuan 1,506, Perbadanan Kemajuan Ekonomi Islam Negeri Perak 1,427, Yayasan Islam Kelantan 1,385,

138 STATISTIK PEGANGAN SAHAM seperti pada 30 September 2005 SHAREHOLDINGS STATISTICS as at 30 September 2005 Senarai Pegangan Saham Utama (5% dan ke atas) List of Substantial Shareholders (5% and above) Kepentingan Kepentingan Langsung Tidak Langsung Bilangan Saham Bilangan Saham Nama-nama Direct Interest % Indirect Interest % Names No. of Shares % No. of Shares % 1. Lembaga Tabung Haji 166,988, Permodalan Nasional Berhad 141,354, Employees Provident Fund Board 35,989, Majlis Ugama Islam Sabah 9,178, ,175,999 * Skim Amanah Saham Bumiputera 30,000,000 ** 5.33 * Saham-saham ini didaftarkan atas nama Mayban Nominees (Tempatan) Sdn Bhd * This shares are registered under the name of Mayban Nominees (Tempatan) Sdn Bhd **Saham-saham ini didaftarkan atas nama Amanah Raya Nominees (Tempatan) Sdn Bhd **This shares are registered under the name of Amanah Raya Nominees (Tempatan) Sdn Bhd 138 Pecahan Pegangan Saham Bumiputra Bumiputra Shareholdings Breakdown Bilangan Pemegang Saham Bilangan Jenis Pegangan No. of % Saham % Type of Ownership Shareholders % No. of Shares % 1. Agensi Kerajaan/ Government Agency: ,855, Bumiputra: Individu/ Individuals 1, ,448, Syarikat/ Companies ,689, Syarikat Nominee/ Nominees Companies ,122, Bukan Bumiputra/ Non-Bumiputra: Individu/ Individuals 2, ,257, Syarikat/ Companies ,898, Syarikat Nominee/ Nominees Companies ,677, Jumlah di Malaysia / Malaysian Total 3, ,949, Asing/ Foreign: Individu/ Individuals , Syarikat/ Companies Syarikat Nominee/ Nominees Companies ,379, Jumlah Asing / Foreign Total ,015, Jumlah Keseluruhan / Grand Total 4, ,965,

139 DIREKTORI KUMPULAN GROUP DIRECTORY BIMB Holdings Berhad ( X) Tingkat 14, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : Faks : Teleks : MA 31783, Kabel : BANKISMA KUALA LUMPUR Laman Web / website : SUBSIDIARI-SUBSIDIARI SUBSIDIARIES BIMB Foreign Currency Clearing Agency Sdn Bhd ( V) Tingkat 9, Menara Tun Razak Jalan Raja Laut, Peti Surat Kuala Lumpur Tel : / / Faks : Syarikat Takaful Malaysia Berhad ( K) Tingkat 2, Blok Annex, Menara Tun Razak Jalan Raja Laut, Kuala Lumpur Tel : Faks : Bank Islam Malaysia Berhad (98127-X) Tingkat 14, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : Faks : , Asean Retakaful International (L) Limited (IS ) Aras 14, Blok 4, Financial Park Office Jalan Merdeka, Labuan I.O.F.C Tel : / Faks : Al-Wakalah Nominees (Tempatan) Sdn Bhd ( P) Tingkat 4, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : Faks : BIMB Unit Trust Management Berhad ( X) Tingkat 5, Darul Takaful Jalan Sultan Ismail Kuala Lumpur Tel : / / Faks : BIMB International Islamic Trust (Labuan) Sdn Bhd ( W) Aras 15, Blok 4, Financial Park Office Jalan Merdeka, Labuan I.O.F.C Tel : Faks : P.T. Syarikat Takaful Indonesia Gedung Arthaloka, Lantai 14 Jalan Jenderal Sudirman Kav. 2 Jakarta, Indonesia Tel : Fak : BIMB Securities Holdings Sdn Bhd ( P) Tingkat 14, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : Faks : BIMB Securities Sdn Bhd ( X) Tingkat 1 & 2, Blok Podium, Bangunan AMDB No. 1, Jalan Lumut, Kuala Lumpur Tel : Faks : BIMB Trust Limited (LL04013) Aras 15, Blok 4, Financial Park Office Jalan Merdeka, Labuan I.O.F.C Tel : Faks : BIMSEC Nominees (Asing) Sdn Bhd ( P) Tingkat 1 & 2, Blok Podium, Bangunan AMDB No. 1, Jalan Lumut, Kuala Lumpur Tel : Faks :

140 DIREKTORI KUMPULAN GROUP DIRECTORY BIMSEC Nominees (Tempatan) Sdn Bhd ( M) Tingkat 2, Blok Podium, Bangunan AMDB No. 1, Jalan Lumut, Kuala Lumpur Tel : Faks : BIMSEC Asset Management Sdn Bhd ( V) Tingkat 1& 2, Blok Podium, Bangunan AMDB No.1, Jalan Lumut, Kuala Lumpur Tel : Faks : Syarikat Al-Ijarah Sdn Bhd ( P) Tingkat 4, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : Faks : Pembiayaan Perumahan Nasional Sdn Bhd ( A) Tingkat 18, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : Faks : BIMB Venture Capital Sdn Bhd (53866-H) Tingkat 17, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : / Faks : BIMB Musyarakah Satu Sdn Bhd ( A) Tingkat 17, Darul Takaful Jalan Sultan Ismail, Kuala Lumpur Tel : Faks : Islamic Banking & Finance Institute Malaysia Sdn Bhd ( M) Tingkat 3, Bangunan Sime Bank Jalan Sultan Sulaiman, Kuala Lumpur Tel : Faks :

141 NOTIS MESYUARAT AGUNG TAHUNAN KELAPAN NOTICE OF THE EIGHTH ANNUAL GENERAL MEETING DENGAN INI DIMAKLUMKAN BAHAWA MESYUARAT AGUNG TAHUNAN BIMB Holdings Berhad kali kelapan akan diadakan di Tingkat 11, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur pada hari Rabu, 30 November 2005 jam pagi untuk menjalankan urusan-urusan berikut: Urusan Biasa 1. Untuk menerima akaun-akaun yang telah diaudit bagi tahun kewangan berakhir 30 Jun 2005 beserta dengan Laporan Pengarah dan Juruaudit mengenainya. (Resolusi 1) 2. Untuk mengisytiharkan dividen pertama dan akhir sebanyak 2.5% ditolak cukai pendapatan sebanyak 28% bagi tahun kewangan berakhir 30 Jun (Resolusi 2) 3. Bahawa Prof. Dr. Muhamad Muda, Pengarah yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat, adalah tidak menawarkan diri untuk dipilih semula. (Resolusi 3) 4. Untuk memilih semula Dato Dr. Abdul Halim Haji Ismail, Pengarah yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat, dan oleh kerana layak telah menawarkan diri untuk pemilihan semula. (Resolusi 4) 5. Untuk memilih semula para Pengarah berikut yang bersara menurut Artikel 66 Tataurusan Persatuan Syarikat: i) Salih Amaran Jamiaan (Resolusi 5) ii) Dato Noorazman A. Aziz (Resolusi 6) 141 NOTICE IS HEREBY GIVEN that the eighth ANNUAL GENERAL MEETING of BIMB Holdings Berhad will be held at 11th Floor, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur on Wednesday, 30 November 2005 at a.m for the following purposes: As Ordinary Business 1. To receive the Audited Accounts for the financial year ended 30 June 2005 together with the Reports of the Directors and Auditors thereon. (Resolution 1) 2. To declare a first and final dividend of 2.5% less 28% tax in respect of the financial year ended 30 June (Resolution 2) 3. That Prof. Dr. Muhamad Muda, a Director who is retiring by rotation pursuant to Article 61 of the Company s Articles of Association is not seeking for re-election. (Resolution 3) 4. To re-elect Dato Dr. Abdul Halim Haji Ismail, a Director who is retiring by rotation pursuant to Article 61 of the Company s Articles of Association, and being eligible has offered himself for re-election. (Resolution 4) 5. To re-elect the following Directors retiring pursuant to Article 66 of the Company s Articles of Association: i) Salih Amaran Jamiaan (Resolution 5) ii) Dato Noorazman A. Aziz (Resolution 6)

142 NOTIS MESYUARAT AGUNG TAHUNAN KELAPAN NOTICE OF THE EIGHTH ANNUAL GENERAL MEETING 6. Untuk melantik semula Datuk Burhanuddin Ahmad Tajudin, Pengarah Syarikat yang bersara menurut Seksyen 129 Akta Syarikat 1965, untuk memegang jawatan sehingga Mesyuarat Agung Tahunan yang akan datang menurut Seksyen 129 (6) Akta Syarikat (Resolusi 7) 7. Untuk meluluskan pembayaran yuran para Pengarah bagi tahun kewangan berakhir 30 Jun (Resolusi 8) 8. Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat sehingga tamatnya Mesyuarat Agung Tahunan akan datang pada 2006 dan memberi kuasa kepada para Pengarah untuk menetapkan ganjaran mereka. (Resolusi 9) Urusan Khas 9. Resolusi Biasa Kuasa untuk Menerbitkan Saham Menurut Seksyen 132D, Akta Syarikat BAHAWA menurut Skim Opsyen Saham Kakitangan Syarikat ( Skim ) sebagaimana diluluskan pada Mesyuarat Agung Luar Biasa Syarikat yang diadakan pada 5 Julai 1997 dan kemudian tempoh Skim tersebut telah dilanjutkan lagi selama 5 tahun dari 20 Ogos 2002 hingga 21 Ogos 2007 melalui Mesyuarat Agung Luar Biasa yang diadakan pada 20 Ogos 2002, kelulusan adalah dan dengan ini diberi kepada para Pengarah menurut Seksyen 132D, Akta Syarikat 1965 untuk menerbitkan saham dalam Syarikat pada bila-bila masa dan selaras dengan terma dan syarat Skim dan BAHAWA kuasa berkenaan hendaklah terus berkuatkuasa sehingga berakhir Mesyuarat Agung Tahunan akan datang. (Resolusi 10) To re-appoint Datuk Burhanuddin Ahmad Tajudin, a Director of the Company who retires pursuant to Section 129 of the Companies Act 1965, to hold office until the conclusion of the next Annual General Meeting of the Company pursuant to Section 129(6) of the Companies Act (Resolution 7) 7. To approve the Directors fees for the financial year ended 30 June (Resolution 8) 8. To re-appoint Messrs. KPMG Desa Megat & Co. as Auditors of the Company until the conclusion of the next Annual General Meeting in year 2006 and to authorize the Directors to fix their remuneration. (Resolution 9) As Special Business 9. Ordinary Resolution Authority to issue shares pursuant to Section 132D of the Companies Act That pursuant to the Company s Employees Shares Option Scheme ( the Scheme ) as approved at the Extraordinary General Meeting of the Company held on 5 July 1997 and subsequently the duration of the Scheme was extended for another 5 years from 20 August 2002 to 21 August 2007 via Extraordinary General Meeting held on 20 August 2002, approval be and is hereby given to the Directors pursuant to Section 132D of the Companies Act 1965 to issue shares in the Company at anytime and in accordance with the terms and conditions of the Scheme and that such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company. (Resolution 10)

143 10. Resolusi Biasa Cadangan Mandat Pemegang Saham untuk Urusniaga Berulang Pihak Berkaitan Berbentuk Hasil atau Perdagangan. Bahawa tertakluk kepada Akta Syarikat 1965, Memorandum dan Tataurusan Persatuan Syarikat dan Keperluan Penyenaraian Bursa Malaysia Securities Berhad, kelulusan adalah dan dengan ini diberi kepada BIMB Holdings Berhad dan subsidiari-subsidiarinya untuk memasuki kategori urusniaga berulang pihak berkaitan berbentuk hasil atau perdagangan dengan pihak-pihak berkaitan seperti yang dinyatakan dalam Seksyen 2.2 Pekeliling kepada Pemegang Saham bertarikh 8 November 2005 yang mana adalah perlu bagi operasi harian Kumpulan, tertakluk kepada perkara-perkara berikut: i) Urusniaga tersebut dijalankan dalam perjalanan perniagaan biasa berdasarkan terma komersil biasa yang tidak lebih memanfaatkan kepada pihak-pihak berkaitan berbanding apa yang secara umumnya tersedia kepada orang ramai; ii) Tidak memudaratkan para pemegang saham minoriti Syarikat; dan iii) Pendedahan dibuat dalam laporan tahunan dengan menyediakan butir-butir terperinci nilai agregat urusniaga yang dijalankan menurut Mandat Pemegang Saham sepanjang tahun kewangan ini ( Mandat ) Ordinary Resolution Proposed Shareholders Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature. That subject to the Companies Act 1965, Memorandum and Articles of Association of the Company and the Listing Requirements of Bursa Malaysia Securities Berhad, approval be and is hereby given to BIMB Holdings Berhad and its subsidiaries to enter into the category of recurrent related party transactions of a revenue or trading nature with those related parties as specified in Section 2.2 of the Circular to the Shareholders dated 8 November 2005 which are necessary for the Group s day to day operations subject to the following: i) The transactions are carried out in the ordinary course of business on normal commercial terms that are not more favourable to the related parties than those generally available to the public; ii) Are not to the detriment of the minority shareholders of the Company; and iii) Disclosure will be made in the annual report providing the breakdown of the aggregate value of transaction conducted pursuant to the Shareholders Mandate during the financial year. ( the Mandate )

144 NOTIS MESYUARAT AGUNG TAHUNAN KELAPAN NOTICE OF THE EIGHTH ANNUAL GENERAL MEETING Dan bahawa Mandat yang diberikan oleh resolusi ini akan berkuatkuasa serta-merta selepas resolusi ini diluluskan; Dan bahawa Mandat tersebut hendaklah terus berkuatkuasa sehingga: a. Tamat mesyuarat agung tahunan akan datang yang mana ia akan luput kecuali melalui satu resolusi yang diluluskan di mesyuarat agung tahunan tersebut, kuasa sedemikian diperbaharui; b. Tamat tempoh yang mana mesyuarat agung tahunan akan datang, selepas tarikh ini perlu diadakan menurut Seksyen 143(1) Akta Syarikat 1965 (tetapi tidak dilanjutkan sehingga had lanjutan seperti yang dibenarkan menurut Seksyen 143(2) Akta Syarikat, 1965); atau c. Dibatal atau diubah melalui resolusi yang diluluskan oleh para pemegang saham dalam satu mesyuarat agung; mana-mana yang terdahulu. (Resolusi 11) 11. Untuk menjalankan urusan biasa lain yang mana notis sewajarnya telah diberikan selaras dengan Akta Syarikat And that Mandate conferred by this resolution shall commence immediately upon the passing of this Resolution; And that such Mandate shall continue in force until: a. the conclusion of the next annual general meeting of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is renewed; b. the expiration of the period within which the next annual general meeting after the date is required to be held pursuant to Section 143(1) of the Companies Act, 1965 ( CA ) (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of CA); or c. revoked or varied by resolution passed by the shareholders in a general meeting; whichever is the earlier. (Resolution 11) 11. To transact any other ordinary business of which due notice shall have been given in accordance with the Companies Act 1965.

145 Notis Penutupan Buku DENGAN INI DIMAKLUMKAN BAHAWA Buku Daftar Ahli Syarikat akan ditutup mulai 8 Disember 2005 hingga 9 Disember 2005 (termasuk kedua-dua tarikh) bagi tujuan menyediakan waran dividen untuk pembayaran dividen pertama dan akhir sebanyak 2.5% ditolak cukai pendapatan sebanyak 28% bagi tahun kewangan berakhir 30 Jun Dividen tersebut, sekiranya diluluskan oleh pemegang saham pada Mesyuarat Agung Tahunan akan datang, akan dibayar pada 30 Disember 2005 kepada pemegang saham yang tersenarai di dalam rekod Pendeposit pada 7 Disember DENGAN INI DIMAKLUMKAN SELANJUTNYA BAHAWA seorang pendeposit akan layak untuk menerima dividen bagi: a) Saham yang dipindahkan kepada Akaun Sekuriti Pendeposit sebelum 4.00 petang pada 7 Disember 2005 berkenaan dengan pindah milik biasa; dan b) Saham yang dibeli di Bursa Malaysia Securities Berhad berasaskan kelayakan menurut peraturan Bursa Malaysia Securities Berhad. Dengan Perintah Lembaga Pengarah SAIFUL NIZAM YASIN (LS 08955) NOR HAIMEE ZAKARIA (MIA 11813) Setiausaha-setiausaha Syarikat Kuala Lumpur 8 November Notice of Book Closure NOTICE IS ALSO HEREBY GIVEN THAT the Register of Members of the Company will be closed from 8 December 2005 to 9 December 2005 (both dates inclusive) for the purpose of preparing dividend warrants for the payment of a first and final dividend of 2.5% less 28% tax in respect of the financial year ended 30 June The dividend, if approved by the shareholders at the forthcoming Annual General Meeting will be paid on 30 December 2005 to the shareholders whose name appear in the Record of Depositors on 7 December FURTHER NOTICE IS HEREBY GIVEN that a depositor shall qualify for dividend entitlement only in respect of: a) Shares transferred to the Depositor s Securities Account before 4.00 p.m. on 7 December 2005 in respect of ordinary transfer. b) Shares bought on the Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of the Bursa Malaysia Securities Berhad. By Order of the Board SAIFUL NIZAM YASIN (LS 08955) NOR HAIMEE ZAKARIA (MIA 11813) Company Secretaries Kuala Lumpur 8 November 2005

146 NOTIS MESYUARAT AGUNG TAHUNAN KELAPAN NOTICE OF THE EIGHTH ANNUAL GENERAL MEETING Nota-nota: 1. Seorang ahli Syarikat yang layak untuk menghadiri dan mengundi di mesyuarat boleh melantik seorang proksi atau proksi-proksi untuk hadir dan mengundi bagi pihak dirinya. 2. Instrumen pelantikan proksi hendaklah secara bertulis dengan tandatangan pelantik atau peguamnya yang diberi kuasa secara bertulis atau jika pelantik adalah sebuah syarikat samada di bawah meterai rasmi atau tandatangan seorang pegawai atau peguam yang diberi kuasa. 3. Semua borang proksi hendaklah didepositkan ke Pejabat Berdaftar Syarikat, Tingkat 14, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur tidak lewat dari empat puluh lapan jam sebelum masa yang ditetapkan untuk mengadakan mesyuarat atau sebarang penundaan darinya. 4. Nota-nota Penerangan Urusan Khas i) Resolusi Biasa 10, jika diluluskan, akan memberi kuasa kepada para Pengarah untuk menerbit dan memperuntukkan saham dalam Syarikat selaras dengan terma dan syarat Skim Opsyen Saham Kakitangan yang diluluskan pada Mesyuarat Agung Luar Biasa yang diadakan pada 5 Julai 1997 dan kemudian tempoh Skim tersebut dilanjutkan lagi selama 5 tahun dari 20 Ogos 2002 hingga 21 Ogos 2007 melalui Mesyuarat Agung Luar Biasa yang diadakan pada 20 Ogos ii) Resolusi 11, sila rujuk Pekeliling kepada Pemegang Saham bertarikh 8 November Notes: 1. A member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend and vote instead of him. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorized in writing or if the appointer is a corporation either under common seal or under the hand of an officer or attorney duly authorized. 3. All proxy forms should be deposited at the Company s Registered Office, 14th Floor, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur not less than forty-eight hours before the time fixed for holding of the meeting or any adjournment thereof. 4. Explanatory Notes to the Special Business i) The Ordinary Resolution 10, if passed, will empower the Directors to issue and allot shares in the Company in accordance with the terms and conditions of the Employees Shares Option Scheme approved at the Extraordinary General Meeting of the Company held on 5 July 1997 and subsequently the duration of the Scheme was extended for another 5 years from 20 August 2002 to 21 August 2007 via Extraordinary General Meeting held on 20 August ii) Ordinary Resolution 11, please refer to the Circular to Shareholders dated 8 November 2005.

147 PENYATA MENGIRINGI NOTIS MESYUARAT AGUNG TAHUNAN menurut Perenggan 8.28 (2) Keperluan Penyenaraian Bursa Malaysia Securities Berhad STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING pursuant to Paragraph 8.28 (2) of the Listing Requirements of the Bursa Malaysia Securities Berhad 1. Layak untuk pemilihan semula Bahawa Prof. Dr. Muhamad Muda, Pengarah yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat, adalah tidak menawarkan diri untuk dipilih semula Untuk memilih semula Dato Dr. Abdul Halim Haji Ismail, Pengarah yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat, dan oleh kerana layak telah menawarkan diri untuk pemilihan semula. Para Pengarah yang dilantik pada tahun kewangan bersara menurut Artikel 66 Tataurusan Persatuan Syarikat dan layak untuk dipilih semula adalah seperti berikut: Salih Amaran Jamiaan Dato Noorazman A. Aziz Pengarah yang berumur lebih daripada tujuh puluh (70) tahun dan layak untuk dilantik semula: Datuk Burhanuddin Ahmad Tajudin Butir-butir lanjut berhubung para Pengarah yang disebut di atas dinyatakan dalam profil Lembaga Pengarah di muka surat 33 hingga 37 dalam Laporan Tahunan ini Standing for re-election That Professor Dr. Muhamad Muda, a Director who is retiring by rotation pursuant to Article 61 of the Company s Articles of Association is not seeking for re-election To re-elect Dato Dr. Abdul Halim Haji Ismail, a Director who is retiring by rotation pursuant to Article 61 of the Company s Articles of Association, and being eligible has offered himself for re-election. The Directors who were appointed during the financial year retiring pursuant to Article 66 of the Company s Articles of Association and seeking re-election as follows: Salih Amaran Jamiaan Dato Noorazman A. Aziz A Director who is over the age of seventy years and is seeking re-appointment: Datuk Burhanuddin Ahmad Tajudin Further details of the abovementioned Directors are set out under Board of Directors Profiles on page 33 to 37 of the Annual Report.

148 PENYATA MENGIRINGI NOTIS MESYUARAT AGUNG TAHUNAN menurut Perenggan 8.28 (2) Keperluan Penyenaraian Bursa Malaysia Securities Berhad STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING pursuant to Paragraph 8.28 (2) of the Listing Requirements of the Bursa Malaysia Securities Berhad 2. Butir-butir kehadiran para Pengarah di Mesyuarat Lembaga Pengarah. Tujuh (7) Mesyuarat Lembaga Pengarah diadakan dalam tahun kewangan berakhir 30 Jun Kehadiran para Pengarah yang memegang jawatan pada akhir tahun kewangan berakhir 30 Jun 2005 adalah seperti yang dinyatakan dibawah: Pengarah Tarikh Pelantikan Bil. Mesyuarat Dihadiri* Dato Mohd Bakke Salleh 2 Jun /7 Prof. Dr. Muhamad Muda 1 Ogos /7 Dato Dr. Abdul Halim Haji Ismail 21 Ogos /7 Encik Mohd Zin Idris 20 September /7 Datuk Dr. Elias Md Kadir Baba 16 Februari /7 Datuk Siti Maslamah Osman 16 Februari /7 Datuk Burhanuddin Ahmad Tajudin 26 April /7 Salih Amaran Jamiaan 1 18 Februari /2 Dato Noorazman A. Aziz 2 1 April /1 Dato Mohd Yusoff Haji Nasir 3 1 Disember /5 Mr. Khalid Mahmood Bhaimia 4 30 Januari /4 Dato Ahmad Tajudin Abdul Rahman 5 20 Mac 1997 Tiada 1 Dilantik sebagai Pengarah pada 18 Februari Dilantik sebagai Pengarah 1 April Bersara sebagai Pengarah pada 1 Disember Meletak jawatan sebagai Pengarah pada 12 November Bersara sebagai Pengarah pada 1 Julai 2004 * Menunjukkan bilangan mesyuarat yang diadakan semasa para Pengarah tersebut memegang jawatan Details of attendance of Directors at Board Meetings. Seven (7) Board of Directors Meetings were held during the financial year ended 30 June Attendance of the Directors holding office at the end of the financial year ended 30 June 2005 is shown below: Directors Date of Appointment No. of Meetings Attended* Dato Mohd Bakke Salleh 2 June /7 Prof. Dr. Muhamad Muda 1 August /7 Dato Dr. Abdul Halim Haji Ismail 21 August /7 Encik Mohd Zin Idris 20 September /7 Datuk Dr. Elias Md Kadir Baba 16 February /7 Datuk Siti Maslamah Osman 16 February /7 Datuk Burhanuddin Ahmad Tajudin 26 April /7 Salih Amaran Jamiaan 1 18 February /2 Dato Noorazman A. Aziz 2 1 April /1 Dato Mohd Yusoff Haji Nasir 3 1 December /5 Mr. Khalid Mahmood Bhaimia 4 30 January /4 Dato Ahmad Tajudin Abdul Rahman 5 20 March 1997 Nil 1 Appointed as Director on 18 February Appointed as Director on 1 April Retired as Director on 1 December Resigned as director on 12 November Retired as Director on 1 July 2004 * Reflect the number of meeting held during the time the Director held office

149 3. Butir-butir berhubung tempat, tarikh dan masa Mesyuarat Lembaga Pengarah: Jenis Mesyuarat Tarikh Masa Mesyuarat Khas Lembaga Pengarah 22 Julai petang Mesyuarat Lembaga Pengarah ke Ogos pagi Mesyuarat Khas Lembaga Pengarah 27 September pagi Mesyuarat Khas Lembaga Pengarah 14 Oktober petang Mesyuarat Lembaga Pengarah ke November pagi Mesyuarat Lembaga Pengarah ke Februari petang Mesyuarat Lembaga Pengarah ke Mei pagi Semua mesyuarat yang dinyatakan di atas diadakan di Bilik Mesyuarat, Tingkat 18, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur. 4. Butir-butir berhubung tempat, tarikh dan masa Mesyuarat Agung: Tarikh Masa Mesyuarat Agung Tahunan 29 November pagi Mesyuarat yang dinyatakan di atas diadakan di Tingkat 11, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur Details of the place, date and time of Board Meetings: Type of Meeting Date Time Special Board Meeting 22 July p.m 31st Board Meeting 23 August a.m Special Board Meeting 27 September a.m Special Board Meeting 14 October p.m 32nd Board Meeting 29 November a.m 33rd Board Meeting 28 February p.m 34th Board Meeting 30 May a.m All the abovementioned meetings were held at the Meeting Room, 18th Floor, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur. 4. Details of the place, date and time of General Meeting: Date Time Annual General Meeting 29 November a.m The above mentioned meeting was held at the 11th Floor, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur.

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151 BORANG PROKSI Saya/Kami dari sebagai Ahli/Ahli-Ahli Syarikat tersebut di atas dengan ini melantik dari atau jika beliau gagal hadir dari sebagai proksi saya/ kami untuk mengundi bagi pihak saya/ kami di MESYUARAT AGUNG TAHUNAN Syarikat yang kelapan yang akan diadakan pada hari Rabu, 30 November 2005, jam pagi atau pada sebarang penangguhannya. Proksi saya/ kami akan mengundi seperti di bawah: No. Resolusi Menyokong Menentang 1. Menerima Akaun-akaun dan Laporan Pengarah bagi tahun kewangan berakhir 30 Jun Untuk mengisytiharkan dividen pertama dan akhir sebanyak 2.5% ditolak cukai pendapatan 28% bagi tahun kewangan berakhir 30 Jun Bahawa Prof. Dr. Muhamad Muda, Pengarah yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat, adalah tidak menawarkan diri untuk dipilih semula 4. Untuk memilih semula Dato Dr. Abdul Halim Haji Ismail, Pengarah yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat, dan oleh kerana layak telah menawarkan diri untuk pemilihan semula 5. Untuk memilih semula Encik Salih Amaran Jamiaan sebagai Pengarah menurut Artikel 66 Tataurusan Persatuan Syarikat 6. Untuk memilih semula Dato Noorazman A. Aziz sebagai Pengarah menurut Artikel 66 Tataurusan Persatuan Syarikat 7. Untuk melantik semula Datuk Burhanuddin Ahmad Tajudin sebagai Pengarah menurut Seksyen 129(6) Akta Syarikat Untuk meluluskan pembayaran yuran para Pengarah bagi tahun kewangan berakhir 30 Jun Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan ganjaran Juruaudit 10. Kuasa untuk menerbitkan saham menurut Seksyen 132D Akta Syarikat Cadangan Mandat Pemegang Saham untuk Urusniaga Berulang Pihak Berkaitan Berbentuk Hasil atau Perdagangan Sila tandakan pangkah (X) pada ruang yang disediakan untuk undian anda sama ada menyokong atau menentang resolusi-resolusi tersebut. Jika tiada arahan tertentu, proksi anda akan mengundi atau mengecualikan diri yang mana beliau fikirkan layak. Bilangan Saham Bertarikh haribulan Tandatangan Pemegang Saham atau Meterai Rasmi Nota: 1. Seorang ahli Syarikat ini yang berhak hadir dan mengundi dalam mesyuarat berhak melantik seorang proksi untuk hadir dan mengundi bagi pihaknya. 2. Instrumen perlantikan proksi mestilah dibuat secara bertulis dan ditandatangani oleh pihak yang melantik. Jika pihak yang melantik itu sebuah perbadanan, ianya hendaklah dibuat samada dibawah meterai rasmi atau ditandatangani oleh pegawai atau wakil yang diberi kuasa. 3. Semua borang proksi hendaklah dihantar kepada Pejabat Berdaftar Syarikat di Tingkat 14, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur tidak lewat dari empat puluh lapan jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya. 4. Kecuali terdapat arahan pengundian yang tunjukkan dalam ruang yang disediakan di atas, seorang proksi boleh mengundi sebagaimana yang beliau fikirkan.

152 PROXY FORM I /We of being a Member/Members of the abovenamed Company, hereby appoint of or failing him of as my/our proxy to vote for me/us on my/our behalf at the EIGHTH ANNUAL GENERAL MEETING of the Company to be held on Wednesday, 30 November 2005 at a.m. or at any adjournment thereof. My/ Our proxy is to vote as indicated below: No. Resolution For Against 1. Adoption of Accounts and Reports of the Directors and Auditors for the financial year ended 30 June To declare a first and final dividend of 2.5% less 28% tax in respect of the financial year ended 30 June That Prof. Dr. Muhamad Muda, a Director who is retiring by rotation pursuant to Article 61 of the Company s Articles of Association, is not seeking for re-election 4. To re-elect Dato Dr. Abdul Halim Haji Ismail, a Director who is retiring by rotation pursuant to Article 61 of the Company s Articles of Association, and being eligible, has offered himself for re-election 5. To re-elect Encik Salih Amaran Jamiaan as a Director pursuant to Article 66 of the Company s Articles of Association 6. To re-elect Dato Noorazman A. Aziz as a Director pursuant to Article 66 of the Company s Articles of Association 7. To re-elect Datuk Burhanuddin Ahmad Tajudin as a Director pursuant to Section 129(6) of the Companies Act To approve the Directors fee for the financial year ended 30 June To re-appoint Messrs KPMG Desa Megat & Co. as Auditors and to authorize the Directors to fix their remuneration 10. Authority to issue shares pursuant to Section 132D of the Companies Act Renewal of Shareholders Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature Please indicate with a cross (X) in the spaces provided whether you wish your votes to be cast for or against the resolutions. In the absence of specific directions, your proxy will vote or abstain as he/she thinks fit. Number of shares Date this day of Signature of Shareholder or Common Seal Notes: 1. A member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend and vote instead of him/her. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly authorized in writing or if the appointer is a corporation either under the common seal or under the hand of an officer or attorney duly authorized. 3. All proxy forms should be deposited at the Company s Registered Office, 14th Floor, Darul Takaful, Jalan Sultan Ismail, Kuala Lumpur not less than forty-eight hours before the time fixed for holding of the meeting or any adjournment thereof. 4. Unless voting instructions are indicated in the spaces provided above, the proxy may vote as he/she thinks.