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SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K)LAPORAN TAHUNAN 2013 ANNUAL REPORT 01

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Takaful_AR13 Cover.pdf 1 17/03/2014 17:22:19

SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K)LAPORAN TAHUNAN 2013 ANNUAL REPORT02

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Notis Mesyuarat Agung Tahunan ke-29

Notice of 29th Annual General Meeting

Penyata Mengiringi Notis Mesyuarat Agung Tahunan ke-29

Statement Accompanying Notice of 29th Annual General Meeting

Struktur Korporat

Corporate Structure

Ringkasan Kewangan Lima Tahun

Five Years Financial Highlights

Maklumat Korporat

Corporate Information

Profil Lembaga Pengarah

Board of Directors’ Profile

Profil Badan Penasihat Syariah

Shariah Advisory Body’s Profile

Jawatankuasa Pengurusan

Management Committee

Laporan Jawatankuasa Audit

Audit Committee Report

Isi KandunganContents

002

006

Penyata Urus Tadbir Korporat

Corporate Governance Statement

Maklumat Pematuhan Tambahan

Additional Compliance Information

Penyata Pengurusan Risiko dan Kawalan Dalaman

Statement on Risk Management and Internal Control

Penyata Pengerusi

Chairman’s Statement

Penyata Kewangan

Financial Statements

Maklumat Hartanah

Particulars of Properties

Statistik Pegangan Saham

Shareholdings Statistics

Rangkaian Cawangan & Syarikat Subsidiari

Branch Network & Subsidiary Companies

Borang Proksi

Proxy Form

036

049

051

056

071

262

269

273

007

008

010

012

020

025

027


Notis Mesyuarat Agung Tahunan Ke-29


DENGAN INI DIMAKLUMKAN bahawa MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD yang KEDUA PULUH SEMBILAN (29) akan

diadakan di Dewan Ahmad Mohamed Ibrahim, Tingkat 5,

Blok Annex, Menara Takaful Malaysia, No. 4, Jalan Sultan

Sulaiman, 50000 Kuala Lumpur pada hari Selasa, 22 April

2014, jam 10:00 pagi bagi tujuan-tujuan berikut:

SEBAGAI URUSAN BIASA

1. Untuk menerima Penyata-penyata Kewangan Beraudit

bagi tahun kewangan berakhir 31 Disember 2013,

berserta laporan Pengarah dan Juruaudit berkaitan

dengannya. (Resolusi 1)

2. Untuk meluluskan dividen akhir sebanyak 40% tier

tunggal bagi tahun kewangan berakhir 31 Disember

2013. (Resolusi 2)

3. Untuk melantik semula Pengarah-pengarah berikut

yang bersara menurut Artikel 62 Tataurusan Pertubuhan

Syarikat:

3.1 Dato’ Mohamed Hassan Kamil (Resolusi 3)

3.2 Johan Abdullah (Resolusi 4)

3.3 Datuk Rozaida Omar (Resolusi 5)

4. Untuk meluluskan bayaran yuran Pengarah-pengarah

sebanyak RM696,000 bagi tahun kewangan berakhir

31 Disember 2013. (RM783,000 bagi tahun kewangan

berakhir 31 Disember 2012) (Resolusi 6)

5. Untuk meluluskan bayaran yuran Ahli-ahli Badan

Penasihat Syariah sebanyak RM168,000 bagi tahun

kewangan berakhir 31 Disember 2013. (RM193,000

bagi tahun kewangan berakhir 31 Disember 2012)

(Resolusi 7)

6. Untuk melantik semula Tetuan KPMG Desa Megat & Co.

sebagai Juruaudit Syarikat dan memberi kuasa kepada

Pengarah-pengarah untuk menetapkan bayaran

Juruaudit. (Resolusi 8)

NOTICE IS HEREBY GIVEN that the TWENTY NINTH (29TH) ANNUAL GENERAL MEETING of SYARIKAT TAKAFUL MALAYSIA BERHAD will be held at Dewan

Ahmad Mohamed Ibrahim, 5th Floor, Annexe Block, Menara

Takaful Malaysia, No. 4, Jalan Sultan Sulaiman, 50000 Kuala

Lumpur on Tuesday, 22 April 2014, at 10:00 a.m. for the

following purposes:

AS ORDINARY BUSINESS

1. To receive the Audited Financial Statements for the

financial year ended 31 December 2013, together with

the reports of the Directors and Auditors thereon.

(Resolution 1)

2. To approve a final dividend of 40% single tier in

respect of the financial year ended 31 December 2013.

(Resolution 2)

3. To re-elect the following Directors, each of whom

retires pursuant to Article 62 of the Company’s Articles

of Association:

3.1 Dato’ Mohamed Hassan Kamil (Resolution 3)

3.2 Johan Abdullah (Resolution 4)

3.3 Datuk Rozaida Omar (Resolution 5)

4. To approve the payment of the Directors’ fees of

RM696,000 for the financial year ended 31 December

2013. (RM783,000 for the financial year ended 31

December 2012) (Resolution 6)

5. To approve the payment of Shariah Advisory Body

Members’ fees of RM168,000 for the financial year

ended 31 December 2013. (RM193,000 for the financial

year ended 31 December 2012) (Resolution 7)

6. To re-appoint Messrs KPMG Desa Megat & Co. as the

Auditors of the Company and to authorise the Directors

to fix their remuneration. (Resolution 8)


SEBAGAI URUSAN KHAS

7. Resolusi Biasa - Cadangan Mandat Pemegang-

pemegang Saham bagi Urusniaga-urusniaga yang

Berulang dengan Pihak Berkaitan Berbentuk Hasil

atau Perdagangan dengan BIMB Holdings Berhad dan

subsidiari-subsidiarinya (“Kumpulan BHB”).

“BAHAWA, tertakluk kepada pematuhan dengan

Keperluan Penyenaraian Bursa Malaysia Securities

Berhad, Akta Syarikat 1965, Memorandum dan

Tataurusan Pertubuhan Syarikat dan semua undang-

undang, peraturan dan garis panduan yang berkaitan,

kelulusan dengan ini diberikan kepada Syarikat dan

subsidiari-subsidiarinya (“Kumpulan Takaful Malaysia”)

untuk memeterai Urusniaga-urusniaga yang Berulang

dengan Pihak Berkaitan Berbentuk Hasil atau

Perdagangan dengan Kumpulan BHB yang perlu bagi

operasi harian Kumpulan Takaful Malaysia seperti yang

dinyatakan dalam Seksyen 2.3 Pekeliling kepada Para

Pemegang Saham bertarikh 31 Mac 2014 (“Pekeliling”),

dengan syarat bahawa:

(a) urusniaga tersebut adalah dalam urusan biasa

perniagaan dan mengikut terma yang tidak lebih

memihak kepada pihak berkaitan berbanding yang

secara umumnya tersedia kepada orang ramai

dan mengikut terma yang tidak menjejaskan para

pemegang saham minoriti Syarikat;

(b) urusniaga dilaksanakan secara tulus dan mengikut

terma komersial biasa; dan

(c) penzahiran akan dibuat dalam laporan tahunan

dengan pecahan nilai agregat urus niaga yang

dijalankan menurut mandat pada tahun kewangan.

DAN BAHAWA kelulusan tersebut akan bermula serta-

merta setelah resolusi ini diluluskan dan akan terus

berkuatkuasa sehingga:

(a) tamat mesyuarat agung tahunan Syarikat yang

akan datang, di mana mandat tersebut akan luput,

melainkan kuasa tersebut diperbaharui melalui satu

resolusi yang diluluskan dalam mesyuarat tersebut;

(b) tamat tempoh di mana mesyuarat agung tahunan

berikutnya selepas tarikh ia dikehendaki untuk

diadakan menurut Seksyen 143(1) Akta Syarikat,

1965 (“AS”) (tetapi tidak melebihi penangguhan

seperti yang dibenarkan menurut Seksyen 143(2)

AS); atau

AS SPECIAL BUSINESS

7. Ordinary Resolution - Proposed Shareholders’ Mandate

for Recurrent Related Party Transactions of a Revenue

or Trading Nature with BIMB Holdings Berhad and its

Subsidiaries (“BHB Group”).

“THAT, subject to compliance with the Listing

Requirements of Bursa Malaysia Securities Berhad,

Companies Act 1965, Memorandum and Articles of

Association of the Company and all other applicable

laws, rules, regulations and guidelines, approval be and

is hereby given to the Company and its subsidiaries

(“Takaful Malaysia Group”) to enter into the Recurrent

Related Party Transactions of a revenue or trading

nature with the BHB Group which are necessary for the

day to day operations of the Takaful Malaysia Group

as set out in Section 2.3 of the Circular to Shareholders

dated 31 March 2014 (“Circular”), provided that:

(a) the transactions are in the ordinary course of

business and are on terms which are not more

favourable to the related parties than those

generally available to the public and on terms not

to the detriment of the minority shareholders of the

Company;

(b) the transactions are made at arm’s length and on

normal commercial terms; and

(c) the disclosure will be made in the annual report

with the breakdown of the aggregate value of the

transactions conducted pursuant to the mandate

during the financial year.

AND THAT such authority shall commence immediately

upon the passing of this resolution and shall continue to

be in force until:

(a) the conclusion of the next annual general meeting of

the Company, at which time it will lapse, unless by

a resolution passed at the meeting, the authority is

renewed;

(b) the expiration of the period within which the next

annual general meeting after the date that it is

required to be held pursuant to Section 143(1) of the

Companies Act, 1965 (“CA”) (but shall not extend

to such extension as may be allowed pursuant to

Section 143(2) of CA); or




(c) dibatalkan atau dipinda melalui resolusi yang

diluluskan oleh pemegang saham dalam mesyuarat

agung,

yang mana lebih awal”. (Resolusi 9)

8. Untuk melaksanakan sebarang urusan yang mana notis

sewajarnya telah diberi.

NOTIS SETERUSNYA DENGAN INI DIBERI BAHAWA

untuk tujuan menentukan ahli yang akan layak untuk

menghadiri AGM yang ke-29, Syarikat akan membuat

permohonan kepada Bursa Malaysia Depository Sdn Bhd,

selaras dengan Artikel 41(f)(ii) Tataurusan Pertubuhan

Syarikat dan Seksyen 34(1) Akta Perindustrian Sekuriti

(Depositori Pusat) 1991, untuk menerbitkan Rekod

Pendeposit Mesyuarat Agung pada 15 April 2014. Hanya

pendeposit yang namanya tersenarai di dalam Rekod

Pendeposit pada 15 April 2014 sahaja berhak untuk

menghadiri mesyuarat atau melantik proksi untuk

menghadiri dan/atau mengundi bagi pihaknya.

NOTIS PENERIMAAN DAN PEMBAYARAN DIVIDEN

NOTIS DENGAN INI JUGA DIBERI BAHAWA tertakluk

kepada kelulusan para pemegang saham pada Mesyuarat

Agung Tahunan Syarikat ke-29 yang akan diadakan pada

hari Selasa, 22 April 2014, dividen akhir sebanyak 40% tier

tunggal bagi tahun kewangan berakhir 31 Disember 2013,

akan dibayar pada 8 Mei 2014 kepada para Pendeposit yang

berdaftar di dalam Rekod Pendeposit pada penutupan

perniagaan pada 23 April 2014.

NOTIS SETERUSNYA DENGAN INI JUGA DIBERI BAHAWA seorang Pendeposit adalah layak untuk

menerima dividen hanya dalam keadaan:

(a) Saham yang telah dipindahkan ke dalam Akaun Sekuriti

Pendeposit sebelum 4:00 petang pada 23 April 2014

berhubung pindahan; dan

(b) Saham yang dibeli di Bursa Malaysia Securities Berhad

dengan asas kelayakan menurut Peraturan Bursa

Malaysia Securities Berhad.

Atas Arahan Lembaga Pengarah

MOHAMAD ASRI YUSOFF (MIA 14171)

Setiausaha Syarikat

Kuala Lumpur

31 Mac 2014

(c) revoked or varied by resolution passed by the

shareholders in a general meeting,

whichever is the earlier”. (Resolution 9)

8. To transact any other business for which due notice has

been given.

FURTHER NOTICE IS HEREBY GIVEN THAT for the

purpose of determining a member who shall be entitled

to attend this 29th AGM, the Company shall be requesting

Bursa Malaysia Depository Sdn Bhd, in accordance with

Article 41(f)(ii) of the Company’s Articles of Association

and Section 34(1) of the Securities Industry (Central

Depositories) Act 1991, to issue a General Meeting Record

of Depositors as at 15 April 2014. Only a depositor whose

name appears on the Record of Depositors as at 15 April

2014 shall be entitled to attend the said meeting or appoint

proxies to attend and/or vote on his/her behalf.

NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT

NOTICE IS ALSO HEREBY GIVEN THAT subject to

shareholders’ approval at the 29th Annual General Meeting

of the Company to be held on Tuesday, 22 April 2014, a

final dividend of 40% single tier in respect of the financial

year ended 31 December 2013 will be paid on 8 May 2014

to Depositors registered in the Record of Depositors at the

close of business on 23 April 2014.

FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor

shall qualify for entitlement to the dividend only in respect

of:

(a) Shares transferred into the Depositor’s Securities

Account before 4:00 p.m. on 23 April 2014 in respect of

transfers; and

(b) Shares bought on the Bursa Malaysia Securities Berhad

on a cum entitlement basis according to the Rules of

Bursa Malaysia Securities Berhad.

By Order of the Board

MOHAMAD ASRI YUSOFF (MIA 14171)

Company Secretary

Kuala Lumpur

31 March 2014




Nota-Nota:

1. Pelantikan Proksi

(i) Seorang ahli Syarikat yang berhak menghadiri dan

mengundi di mesyuarat ini layak untuk melantik tidak lebih

daripada dua (2) proksi untuk menghadiri dan mengundi

bagi pihaknya pada mesyuarat yang sama dan proksi itu

tidak semestinya seorang ahli Syarikat.

(ii) Sekiranya ahli Syarikat melantik dua (2) proksi, pelantikan

tersebut akan menjadi tidak sah melainkan beliau

menyatakan nisbah pegangan yang akan diwakili oleh

setiap proksi.

(iii) Sekiranya ahli Syarikat adalah nomini berkecuali yang

dibenarkan seperti yang ditakrifkan di bawah Akta

Perindustrian Sekuriti 1991 (Depositori Pusat) yang

memegang saham-saham biasa Syarikat untuk beberapa

pemilik benefisial dalam satu akaun sekuriti (“akaun

omnibus”), tidak ada had untuk bilangan proksi yang boleh

dilantik oleh nomini berkecuali yang dibenarkan bagi setiap

akaun omnibus yang dipegangnya.

(iv) Suratcara pelantikan proksi bagi individu hendaklah

ditandatangani oleh pelantik atau peguamnya dan dalam

hal perbadanan, ia mestilah dimeterai atau ditandatangani

oleh seorang pegawai atau peguamnya yang telah diberi

kuasa sewajarnya.

(v) Suratcara pelantikan seorang proksi mestilah dihantar

ke Pejabat Berdaftar Syarikat di Tingkat 26, Blok Annex,

Menara Takaful Malaysia, No. 4, Jalan Sultan Sulaiman,

50000 Kuala Lumpur, tidak lewat dari empat puluh lapan

(48) jam sebelum waktu yang ditetapkan bagi mengadakan

mesyuarat atau sebarang penangguhannya.

(vi) Hanya ahli yang tersenarai di dalam Rekod Pendeposit

pada 15 April 2014 yang layak untuk hadir, bersuara dan

mengundi pada AGM atau melantik seorang proksi (proksi-

proksi) untuk hadir, bersuara dan/atau mengundi bagi

pihak mereka.

2. Nota Penerangan kepada Urusan Khas

(i) Cadangan Mandat Pemegang-pemegang Saham bagi

Urusniaga-urusniaga yang Berulang dengan Pihak

Berkaitan Berbentuk Hasil atau Perdagangan.

Cadangan Resolusi No. 9 jika diluluskan, akan memberi kuasa

kepada Syarikat untuk melaksanakan Urusniaga-urusniaga

yang Berulang dengan Pihak Berkaitan Berbentuk Hasil

atau Perdagangan yang perlu bagi operasi harian Kumpulan

Takaful Malaysia dan akan menghapuskan keperluan untuk

menjalankan mesyuarat agung yang berasingan dari masa

ke semasa untuk mendapatkan kelulusan para pemegang

saham. Butiran Cadangan Mandat Pemegang-pemegang

Saham bagi Urusniaga-urusniaga yang Berulang dengan

Pihak Berkaitan Berbentuk Hasil atau Perdagangan ada

dinyatakan di dalam Pekeliling kepada Pemegang Saham

bertarikh 31 Mac 2014.

Notes:

1. Appointment of Proxy

(i) A member of the Company entitled to attend and vote

at this meeting is entitled to appoint not more than two

(2) proxies to attend and to vote instead of him at the

same meeting and a proxy need not be a member of the

Company.

(ii) Where a member of the Company appoints two (2) proxies,

the appointments shall be invalid unless he specifies the

proportions of his holdings to be represented by each

proxy.

(iii) Where a member of the Company is an exempt authorised

nominee as defined under the Securities Industry (Central

Depositories) Act 1991 which holds ordinary shares in the

Company for multiple beneficial owners in one securities

account (“omnibus account”), there is no limit to the

number of proxies which the exempt authorised nominee

may appoint in respect of each omnibus account it holds.

(iv) The instrument appointing a proxy in the case of an

individual shall be signed by the appointer or his attorney

and in the case of a corporation, must be under seal or

under the hand of an officer or attorney duly authorised.

(v) The instrument appointing a proxy must be deposited

at the Registered Office of the Company at Tingkat 26,

Blok Annex, Menara Takaful Malaysia, No. 4, Jalan Sultan

Sulaiman, 50000 Kuala Lumpur not less than forty eight

(48) hours before the time for holding the meeting or any

adjournment thereof.

(vi) Only members whose names appear in the Record of

Depositors on 15 April 2014 shall be eligible to attend, speak

and vote at the AGM or appoint proxy(ies) to attend, speak

and/or vote on their behalf.

2. Explanatory Note on Special Business

(i) Proposed Shareholders’ Mandate for Recurrent Related

Party Transaction of a Revenue or Trading Nature.

The proposed Resolution 9, if passed, will empower the

Company to conduct recurrent related party transactions

of a revenue or trading in nature which are necessary for

Takaful Malaysia Group’s day to day operations and will

eliminate the need to convene separate general meetings

from time to time to seek shareholders’ approval. The details

on the Proposed Shareholders’ Mandate for Recurrent

Related Party Transactions of a Revenue or Trading Nature

are set out in the Circular to Shareholders dated 31 March

2014.




PENYATA MENGIRINGI NOTIS MESYUARAT AGUNG TAHUNAN KEDUA PULUH SEMBILAN MENGIKUT PERENGGAN 8.27 (2) KEPERLUAN PENYENARAIAN PASARAN UTAMA BURSA MALAYSIA SECURITIES BERHAD

Tiada individu yang dilantik sebagai Pengarah (selain daripada pengarah yang bersedia untuk dilantik semula iaitu Dato’

Mohamed Hassan Kamil, Johan Abdullah dan Datuk Rozaida Omar) dalam Mesyuarat Agung Tahunan Syarikat Takaful

Malaysia Berhad yang Kedua Puluh Sembilan akan datang.

STATEMENT ACCOMPANYING NOTICE OF TWENTY NINTH ANNUAL GENERAL MEETING PURSUANT TO PARAGRAPH 8.27 (2) OF THE MAIN MARKET LISTING REqUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

There is no individual standing for election as Director (other than directors standing for re-election i.e. Dato’ Mohamed

Hassan Kamil, Johan Abdullah and Datuk Rozaida Omar) at this forthcoming Twenty Ninth Annual General Meeting of

Syarikat Takaful Malaysia Berhad.

Penyata Mengiringi Notis Mesyuarat Agung Tahunan Ke-29

Statement Accompanying Notice of 29th Annual General Meeting


Struktur Korporat

Corporate Structure

* in members’ voluntary liquidation

63.09%56.00%

Syarikat-Syarikat Subsidiari / Subsidiary Companies

47.08%

42.73%57.24%52.67%

P.T. SYARIKAT

*

524

,86

7

43

3,0

07

83

9,9

09

679

,83

1

69

9,3

44

56

7,7

36

973

,00

5

1,0

52,4

93

84

8,7

11 93

2,1

69

2009 20092010* 2010*2011 20112012 20122013 2013



Jumlah Sumbangan Kasar Takaful Keluarga / Total Family Takaful Gross Contribution

Jumlah Sumbangan Kasar Takaful Am / Total General Takaful Gross Contribution

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

Kumpulan / Group

Kumpulan / Group

Kumpulan / Group

Syarikat / Company

Syarikat / Company

Syarikat / Company

5 Years Financial Highlights3

52,8

51

4,6

14,8

40

276

,29

44

,30

6,0

63

60

6,3

54

5,3

66

,65

7

49

9,4

91

4,9

66

,219

44

1,8

89

5,8

45

,979

38

3,3

165

,44

0,0

49

40

1,4

37

428

,40

6

6,3

71,

64

4

6,9

24

,54

3

34

9,5

47

38

6,6

35

5,9

63

,15

0

6,5

43

,726

2009

2009

2009

2009

2010*

2010*

2010*

2010*

2011

2011

2011

2011

2012

2012

2012

2012

2013

2013

2013

2013

48

,85

3

45

,325

97,3

70

92,6

64

100

,68

5

93

,48

5124

,45

8

177,7

87

127,0

31

181,

014

2009 20092010* 2010*2011 20112012 20122013 2013


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

Pulangan atas Ekuiti (%) / Return on Equity (%)Dividen yang Dibayar / (Ditolak Cukai) (RM’000)/ Dividend Paid / (Net of Taxation) (RM’000)

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

Kumpulan / Group

Kumpulan / Group

Kumpulan / Group

* 18monthsfinancialperiod

Syarikat / Company

Syarikat / Company

Kumpulan / Group


5 Years Financial Highlights

12.0

2.1

5

8,8

53

24

.20

10.2

2.4

2

17,0

96

34

.60

18.4

2.7

7

25

,64

44

7.2

0

21.

3

25

.9

3.0

7

3.5

1

40

,70

4

84

,66

5

62.1

8

85

.37

2009

2009

2009

2009

2010*

2010*

2010*

2010*

2011

2011

2011

2011

2012

2012

2012

2012

2013

2013

2013

2013


Maklumat Korporat


LEMBAGA PENGARAH / BOARD OF DIRECTORS

Pengerusi / Chairman

DATO’ PADUKA ISMEE ISMAILPengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director

Ahli-ahli / Members

DATO’ MOHAMED HASSAN KAMILPengarah Urusan Kumpulan / Group Managing Director

DATUK ROZAIDA OMARPengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director

MAHADZIR AZIZANPengarah Bukan Eksekutif Bebas Kanan / Senior Independent Non-Executive Director

DATO’ SULAIMAN MOHD YUSOFPengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

JOHAN ABDULLAHPengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director

ZAKARIA ISMAILPengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

DATO’ OTHMAN ABDULLAHPengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

Setiausaha / Secretary

MOHAMAD ASRI YUSOFF(MIA 14171)

BADAN PENASIHAT SYARIAH / SHARIAH ADVISORY BODY


DR. AHMAD SHAHBARI @ SOBRI SALAMON

Ahli-ahli / Members

DATO’ MOHD. BAKIR HJ. MANSOR

DR. AIDA OTHMAN

PROFESSOR DR. MUHAMAD RAHIMI OSMAN

DATO’ WAN MOHAMAD DATO’ SHEIKH ABDUL AZIZ

Setiausaha / Secretary

MOHAMAD ASRI YUSOFF

JAWATANKUASA AUDIT / AUDIT COMMITTEE

MAHADZIR AZIZANPengerusi / Chairman

DATO’ SULAIMAN MOHD YUSOF

ZAKARIA ISMAIL

DATO’ OTHMAN ABDULLAH

JAWATANKUASA PEMILIHAN / NOMINATION COMMITTEE

MAHADZIR AZIZANPengerusi / Chairman

ZAKARIA ISMAIL

DATUK ROZAIDA OMAR


JOHAN ABDULLAH

JAWATANKUASA GANJARAN / REMUNERATION COMMITTEE

ZAKARIA ISMAILPengerusi / Chairman

MAHADZIR AZIZAN

JOHAN ABDULLAH

DATUK ROZAIDA OMAR

JAWATANKUASA RISIKO LEMBAGA PENGARAH / BOARD RISK COMMITTEE

ZAKARIA ISMAILPengerusi / Chairman

MAHADZIR AZIZAN

JOHAN ABDULLAH



Maklumat Korporat


PENGURUSAN / MANAGEMENT

DATO’ MOHAMED HASSAN KAMILPengarah Urusan Kumpulan / Group Managing Director

LEE HIN SZEKetua Pegawai Kewangan / Chief Financial Officer

AZIAN KASSIMKetua Pegawai Pelaburan / Chief Investment Officer

NAZRUL HISHAM ABDUL HAMIDPengurus Besar, Operasi Takaful Am / General Manager, General Takaful Operations

LEEM WHY CHONGPengurus Besar, Aktuari & Aktuari Dilantik / General Manager, Actuarial & Appointed Actuary

NORAZLIN MOHD DAHARIPengurus Besar, Perniagaan Korporat / General Manager, Corporate Business

MOHD SUHAIMI AHMADPengurus Besar, Agensi Runcit / General Manager, Retail Agency

SHUHAIBAHTULASLAMIAH HURMUZANPengurus Besar, Sumber Manusia / General Manager, Human Resource

PATRICK WONG CHANG YANGKetua Pegawai Informasi / Chief Information Officer

MARK ANTHONY NATHANPengurus Besar, Bankatakaful / General Manager, Bancatakaful

LEONG CHEE WANPenolong Pengurus Besar, Operasi – Takaful Keluarga / Bankatakaful / LogistikAssistant General Manager, Operations – Family Takaful / Bancatakaful / Logistics

HANIZA FILZAH HAYANI ABU HANIFFAPenolong Pengurus Besar, Audit Dalaman / Assistant General Manager, Internal Audit

SHAZLYNA ABDULLAH Penolong Pengurus Besar, Pematuhan & Pengurusan Risiko / Assistant General Manager, Compliance & Risk Management

MALA PATMARAJAHKetua, Komunikasi Korporat /Head of Corporate Communications

JURUAUDIT / AUDITORS

KPMG Desa Megat & Co. (AF 0759)Chartered AccountantsLevel 10, KPMG Tower8, First AvenueBandar Utama47800 Petaling JayaSelangor Darul Ehsan

Tel : +603-7721 3388Fax : +603-7721 3399

PEJABAT BERDAFTAR / REGISTERED OFFICE

Tingkat 26, Blok AnnexMenara Takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 Kuala Lumpur

Tel : +603-2268 1984Fax : +603-2274 2864Email : [email protected] : www.takaful-malaysia.com.my

PENDAFTAR / REGISTRAR

Symphony Share Registrars Sdn Bhd (378993-D)Level 6, Symphony HousePusat Dagangan Dana 1Jalan PJU 1A/4647301 Petaling JayaSelangor

Tel : +603-7841 8000Fax : +603-7841 8151/52Helpdesk Line : +603-7849 0777Website : www.symphony.com.my

TEMPAT DITUBUHKAN DAN DOMISIL / PLACE OF INCORPORATION AND DOMICILE

MALAySIA

PENYENARAIAN BURSA SAHAM / STOCK EXCHANGE LISTING

Pasaran Utama Bursa Malaysia Securities Berhad pada 30 Julai 1996 /Main Market of Bursa Malaysia Securities Berhad on 30 July 1996

Kod Stok / Stock Code:

6139

Nama Stok / Stock Name:

TAKAFUL

Beliau adalah ahli fellow Chartered Institute of Management

Accountants (CIMA) dan ahli Institut Akauntan Malaysia

(MIA).

Beliau kini merupakan Pengarah Urusan Kumpulan dan

Ketua Pegawai Eksekutif Lembaga Tabung Haji. Sebelum

itu, beliau merupakan Ketua Pegawai Eksekutif ECM Libra

Securities Sdn Bhd dan Pengarah ECM Libra Capital Sdn

Bhd. Beliau juga pernah berkhidmat dengan beberapa

organisasi dalam pelbagai kapasiti antaranya selaku

Pengurus Besar Kanan Kewangan, Lembaga Tabung

Haji; Ketua Akauntan di Pengurusan Danaharta Nasional

Berhad; Pengurus Besar Pembangunan Perniagaan di Arab

Malaysian Development Berhad dan beberapa jawatan

berkaitan kewangan di Shell Malaysia Trading Sdn Bhd.

Beliau juga adalah Pengarah BIMB Holdings Berhad, Bank

Islam Malaysia Berhad, TH Plantations Berhad, Felda Global

Ventures Holdings Berhad dan beberapa syarikat lain.

Beliau tidak mempunyai perhubungan kekeluargaan

dengan mana-mana pengarah/pemegang saham utama

Takaful Malaysia dan tidak mempunyai percanggahan

kepentingan dengan Takaful Malaysia. Beliau tidak pernah

disabitkan dengan apa-apa kesalahan dalam tempoh

sepuluh (10) tahun yang lalu dan telah menghadiri kesemua

sembilan (9) mesyuarat Lembaga Pengarah yang diadakan

dalam tahun kewangan berakhir 31 Disember 2013.

He is a fellow member of Chartered Institute of Management

Accountants (CIMA) and a member of the Malaysian

Institute of Accountants (MIA).

He is currently the Group Managing Director and Chief

Executive Officer of Lembaga Tabung Haji. Prior to that,

he was the Chief Executive Officer of ECM Libra Securities

Sdn Bhd and a Director of ECM Libra Capital Sdn Bhd. He

has also served several organisations in various capacities

including that of Senior General Manager of Finance,

Lembaga Tabung Haji; Chief Accountant at Pengurusan

Danaharta Nasional Berhad; General Manager of Business

Development at Arab Malaysian Development Berhad and

has held several finance-related positions at Shell Malaysia

Trading Sdn Bhd. He is also a Director of BIMB Holdings

Berhad, Bank Islam Malaysia Berhad, TH Plantations Berhad,

Felda Global Ventures Holdings Berhad and several other

companies.

He has no family relationship with any other directors/

major shareholders of Takaful Malaysia and has no conflict

of interest with Takaful Malaysia. He has no conviction for

offences within the past ten (10) years and has attended

all nine (9) Board of Directors’ meetings held during the

financial year ended 31 December 2013.

Dato’ Paduka Ismee Ismail, berusia 49 tahun, adalah

warganegara Malaysia dan telah dilantik sebagai

Pengerusi Bukan Eksekutif Bukan Bebas Takaful

Malaysia pada 16 Disember 2009.

Dato’ Paduka Ismee Ismail, aged 49, is a Malaysian

citizen and was appointed to the Board on 16 December

2009 as a Non-Independent Non-Executive Chairman of

Takaful Malaysia.

DATO’ PADUKA ISMEE ISMAIL





Beliau merupakan graduan Sarjana Muda Sains dalam

bidang Sains Aktuari dan Sarjana Pentadbiran Perniagaan

dari University of Iowa, USA. Beliau juga adalah Fellow of

the Society of Actuaries, USA, ahli American Academy of

Actuaries dan Chartered Life Underwriter.

Beliau telah bekerja di Amerika Syarikat sebagai Aktuari

dari tahun 1987 hingga 1994 sebelum pulang ke Malaysia

sebagai Timbalan Pengurus Besar di Malaysia National

Insurance. Pada tahun 1996, beliau menyertai ING Insurance

Berhad sebagai Naib Presiden Kanan dan Ketua Aktuari.

Pada tahun 2004, beliau menjadi Timbalan Pengurus Besar

bagi P.T. AIA Indonesia.









He graduated with a Bachelor of Science in Actuarial

Science and a Master in Business Administration from the

University of Iowa, USA. He is a Fellow of the Society of

Actuaries, USA, a member of the American Academy of

Actuaries and a Chartered Life Underwriter.

He worked in the United States as an Actuary from 1987

to 1994 prior to returning to Malaysia as Deputy General

Manager at Malaysia National Insurance. In 1996, he joined

ING Insurance Berhad as Senior Vice President and Chief

Actuary. In 2004, he became the Deputy General Manager

for P.T. AIA Indonesia.







Dato’ Mohamed Hassan Kamil, berusia 51 tahun, adalah warganegara Malaysia dan dilantik ke Lembaga Pengarah Takaful Malaysia pada 1 September 2006 sebagai Pengarah Bukan Eksekutif Bukan Bebas. Beliau kini adalah Pengarah Urusan Kumpulan bagi Takaful Malaysia sejak 1 April 2007. Beliau juga merupakan Pengerusi Lembaga Komisaris P.T. Syarikat Takaful Indonesia dan P.T. Asuransi Takaful Keluarga.

Dato’ Mohamed Hassan Kamil, aged 51, is a Malaysian citizen and was appointed to the Board of Takaful Malaysia on 1 September 2006 as a Non-Independent Non-Executive Director. He is currently the Group Managing Director of Takaful Malaysia since 1 April 2007. He is also the Chairman of the Board of Commissioners of P.T. Syarikat Takaful Indonesia and P.T. Asuransi Takaful Keluarga.

DATO’ MOHAMED HASSAN KAMIL

Pengarah Urusan Kumpulan / Group Managing Director




Beliau adalah Akauntan Bertauliah (M) dan merupakan ahli

Association of Chartered Certified Accountants (ACCA)

United Kingdom sejak tahun 1986.

Beliau memulakan kerjayanya sebagai Akauntan Kewangan

di FELDA pada tahun 1986. Pada tahun 1990, beliau menjadi

Pengurus Kredit di Citibank Berhad sehingga tahun 1991.

Beliau kemudiannya menyertai Guthrie Trading Sdn Bhd

pada tahun 1992 sebagai Pengurus Kewangan sehingga

tahun 1993. Selepas itu, beliau menjadi Pengarah Kewangan

di Glaxo SmithKline Consumer Healthcare Sdn Bhd dari

tahun 1994 sehingga tahun 2003. Kini beliau adalah Ketua

Pegawai Kewangan Kumpulan di Lembaga Tabung Haji

sejak tahun 2004. Beliau juga merupakan Pengarah Pelikan

International Corporation Berhad dan BIMB Holdings

Berhad.









She is a Chartered Accountant (M) and a member of the

Association of Chartered Certified Accountants (ACCA)

United Kingdom since 1986.

She started her career as a Financial Accountant at FELDA

in 1986. In 1990, she became a Credit Manager at Citibank

Berhad until 1991. She then joined Guthrie Trading Sdn Bhd

in 1992 as a Finance Manager until 1993. After that, she

became a Finance Director of Glaxo SmithKline Consumer

Healthcare Sdn Bhd from 1994 until 2003. She is currently

the Group Chief Financial Officer of Lembaga Tabung Haji

since 2004. She is also a Director of Pelikan International

Corporation Berhad and BIMB Holdings Berhad.

She has no family relationship with any other directors/


of interest with Takaful Malaysia. She has no conviction for




Datuk Rozaida Omar, berusia 51 tahun, adalah


Pengarah Bukan Eksekutif Bukan Bebas Takaful

Malaysia pada 15 Mei 2007. Beliau juga merupakan ahli

Jawatankuasa Pemilihan dan Jawatankuasa Ganjaran.

Datuk Rozaida Omar, aged 51, is a Malaysian citizen

and is a Non-Independent Non-Executive Director of

Takaful Malaysia and was appointed to the Board on

15 May 2007. She is also a member of the Nomination

Committee and Remuneration Committee.

DATUK ROZAIDA OMAR

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




Beliau juga merupakan Pengerusi Jawatankuasa Audit

dan Jawatankuasa Pemilihan dan ahli Jawatankuasa Risiko

Lembaga Pengarah dan Jawatankuasa Ganjaran. Beliau

juga merupakan ahli Lembaga Komisaris P.T. Asuransi

Takaful Keluarga.

Beliau memperolehi kelulusan Barrister-At-Law dari

Lincoln’s Inn, London, United Kingdom dan diterima masuk

ke English Bar pada tahun 1978.

Beliau telah memegang pelbagai jawatan penting di dalam

sektor awam dan swasta. Selepas tamat pengajian, beliau

telah menyertai perkhidmatan Perundangan dan Kehakiman

Kerajaan Malaysia sebagai Timbalan Pendakwaraya dan

Penasihat Undang-Undang. Beliau kemudiannya menyertai

sektor swasta dan berkhidmat di Malaysian International

Shipping Corporation (“MISC”) dan Island & Peninsular

Berhad, syarikat hartanah Permodalan Nasional Berhad

(“PNB”) selama 24 tahun. Semasa di sektor swasta, beliau

juga telah berkhidmat sebagai Ahli Majlis MARA dan juga

sebagai Pengarah di pelbagai syarikat berkaitan Kerajaan.

Kini, beliau juga merupakan Pengarah ECM Libra Financial

Group Berhad, Libra Invest Berhad dan beberapa syarikat

lain.






sepuluh (10) tahun yang lalu dan telah menghadiri lapan (8)

mesyuarat Lembaga Pengarah yang diadakan dalam tahun

kewangan berakhir 31 Disember 2013.

He is also the Chairman of the Audit Committee and

Nomination Committee and a member of Board Risk

Committee and Remuneration Committee. He is also a

member of the Board of Commissioners of P.T. Asuransi

Takaful Keluarga.

He is a Barrister-At-Law from Lincoln’s Inn, London, United

Kingdom and was called to the English Bar in 1978.

He has held key positions both in private and public sector.

After graduation, he joined the Judicial and Legal Service of

the Malaysian Government as a Deputy Public Prosecutor

and Federal Counsel and subsequently ventured into the

private sector and served Malaysian International Shipping

Corporation (“MISC”) and Island & Peninsular Berhad, the

property arm of Permodalan Nasional Berhad (“PNB”)

for 24 years. Whilst in the private sector, he also served

as Ahli Majlis MARA as well as various other directorships

in government linked companies. Currently, he is also a

Director of ECM Libra Financial Group Berhad, Libra Invest

Berhad and several other companies.





eight (8) Board of Directors’ meetings held during the


Mahadzir Azizan, berusia 65 tahun, adalah warganegara

Malaysia yang telah dilantik sebagai Pengarah

Bukan Eksekutif Bebas Takaful Malaysia pada

1 September 2007. Beliau telah dilantik sebagai Pengarah

Bukan Eksekutif Bebas Kanan pada 2 Jun 2011.

Mahadzir Azizan, aged 65, is a Malaysian citizen and is an

Independent Non-Executive Director of Takaful Malaysia

who was appointed to the Board on 1 September 2007.

He was appointed as Senior Independent Non-Executive

Director on 2 June 2011.

MAHADZIR AZIZAN

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




Beliau memperolehi Ijazah Sarjana Muda Undang-undang

(LLB) dari University of Buckingham, United Kingdom pada

tahun 1984 dan diterima masuk ke Malaysian Bar pada

tahun 1986.

Beliau memulakan kerjayanya sebagai Pelatih Wartawan

Kadet dengan Agensi Berita Bernama pada tahun 1969.

Seterusnya pada tahun yang sama, beliau menyertai Polis

Di Raja Malaysia. Beliau menjawat pelbagai jawatan dalam

Polis Di Raja Malaysia seperti Timbalan Superitendan

Personel, Setiausaha yang bertanggungjawab kepada

Ketua Polis Negara, Tun Haniff Omar, Pegawai Polis

Daerah Sentul, Alor Setar dan Sungai Petani dan Penolong

Pesuruhjaya Penyelidikan dan Perancangan di Bukit Aman.

Pada tahun 2002, beliau menjadi Timbalan Pengarah

Pengurusan (Disiplin), Timbalan Pengarah Jabatan Narkotik

pada tahun 2003, Ketua Polis Negeri Sembilan pada tahun

2004, Timbalan Pengarah, Jabatan Siasatan Jenayah

Komersial pada tahun 2005 dan sebagai Ketua Polis Kuala

Lumpur pada tahun 2006 sehingga persaraan beliau. Pada

bulan April 2007, beliau membuka syarikat guamannya

sendiri, sekarang ini dikenali sebagai Sulaiman, Jamellah &

Clement. Beliau juga merupakan Pengarah AWC Berhad

dan beberapa syarikat sendirian berhad yang lain.









He graduated with a Bachelor of Law (LLB) from the

University of Buckingham, United Kingdom in 1984 and was

called to the Malaysian Bar in 1986.

He started his career as a Cadet Reporter Trainee with

Bernama News Agency in 1969. Later in the same year, he

joined Royal Malaysia Police. He assumed various positions

at the Royal Malaysia Police such as Deputy Superintendent

of Personnel, Secretary responsible for the IGP, Tun Haniff

Omar, Police Officer for District of Sentul, Alor Setar and

Sungai Petani and Assistant Commissioner of Research

and Planning at Bukit Aman. In 2002, he became the

Deputy Director, Management (Discipline), in 2003 as

Deputy Director, Narcotics Department, in 2004 as the

Chief Police Officer of Negeri Sembilan, in 2005 as Deputy

Director, Commercial Crime Investigation Department and

in 2006 as the Chief Police Officer of Kuala Lumpur until

his retirement. In April 2007, he started his own legal firm,

currently known as Sulaiman, Jamellah & Clement. He is

also a Director of AWC Berhad and other private limited

companies.







Dato’ Sulaiman Mohd yusof, berusia 63 tahun, adalah warganegara Malaysia dan telah dilantik sebagai Pengarah Bukan Eksekutif Bebas Takaful Malaysia pada 1 Januari 2008. Beliau juga merupakan ahli Jawatankuasa Audit, Jawatankuasa Pemilihan dan Jawatankuasa Risiko Lembaga Pengarah. Beliau juga merupakan Pengerusi Asean Retakaful International (L) Ltd. (dalam pembubaran secara sukarela oleh ahli).

Dato’ Sulaiman Mohd yusof, aged 63, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 1 January 2008. He is also a member of the Audit Committee, Nomination Committee and Board Risk Committee. He is also the Chairman of Asean Retakaful International (L) Ltd. (in members’ voluntary liquidation).


Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director




Beliau memperolehi Diploma Perbankan dari Universiti

Teknologi MARA, Shah Alam pada tahun 1983, Ijazah

Sarjana Muda Pentadbiran Perniagaan (Kewangan) dari

Eastern Michigan University, USA pada tahun 1985 dan

Ijazah Sarjana Pentadbiran Perniagaan (Kewangan) dari

Morehead State University, USA pada tahun 1986.

Beliau memulakan kerjaya profesionalnya pada tahun

1987 di Kuala Lumpur Stock Exchange (sekarang ini

dikenali sebagai Bursa Malaysia Securities Berhad) sebagai

Pegawai Penyenaraian. Pada tahun 1989, beliau menyertai

bahagian Kewangan Korporat di Bumiputra Merchant

Bankers Berhad dan meletak jawatan pada awal tahun 1995

sebagai Pengurus Kanan. Beliau kemudiannya menyertai

Damansara Realty Berhad sebagai Pengurus Besar,

Perancangan Korporat. Seterusnya pada tahun 1999, beliau

menyertai semula Bursa Malaysia Securities Berhad dan

telah memegang pelbagai jawatan kanan termasuk Deputy

Chief Regulatory Officer, Group Regulation. Pada bulan

Mei 2008, beliau menyertai BIMB Holdings Berhad (“BHB”)

sebagai Pengarah Urusan Kumpulan/Ketua Pegawai

Eksekutif. Beliau juga merupakan Pengarah Bank Islam

Malaysia Berhad dan anak-anak syarikat di dalam kumpulan

BHB.









He obtained a Diploma in Banking from University

Technology MARA, Shah Alam in 1983, a Bachelor

of Business Administration (Finance) from Eastern

Michigan University, USA in 1985 and a Master in Business

Administration (Finance) from Morehead State University,

USA in 1986.

He started his professional career in 1987 with Kuala Lumpur

Stock Exchange (now known as Bursa Malaysia Securities

Berhad) as Listing Officer. In 1989, he joined Corporate

Finance division of Bumiputra Merchant Bankers Berhad

and left the bank in early 1995 as Senior Manager. Later

he joined Damansara Realty Berhad as General Manager,

Corporate Planning. Subsequently in the year 1999, he re-

joined Bursa Malaysia Securities Berhad and took up various

senior positions including that of Deputy Chief Regulatory

Officer, Group Regulation. In May 2008, he joined BIMB

Holdings Berhad (“BHB”) as the Group Managing Director/

Chief Executive Officer. He is also a director of Bank Islam

Malaysia Berhad and other subsidiaries within BHB Group.







Johan Abdullah, berusia 57 tahun, adalah warganegara

Malaysia dan merupakan Pengarah Bukan Eksekutif

Bukan Bebas Takaful Malaysia dan telah dilantik pada 15

Ogos 2008. Beliau juga merupakan ahli Jawatankuasa

Pemilihan, Jawatankuasa Risiko Lembaga Pengarah dan

Jawatankuasa Ganjaran.

Johan Abdullah, aged 57, is a Malaysian citizen and is

a Non-Independent Non-Executive Director of Takaful

Malaysia and was appointed to the Board on 15 August

2008. He is also a member of the Nomination Committee,

Board Risk Committee and Remuneration Committee.

JOHAN ABDULLAH

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




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

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

Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri tujuh (7) mesyuarat Lembaga Pengarah yang diadakan dalam tahun kewangan berakhir 31 Disember 2013.

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

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

He has no family relationship with any other directors/major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended seven (7) Board of Directors’ meetings held during the financial year ended 31 December 2013.

Zakaria Ismail, berusia 62 tahun, adalah warganegara Malaysia dan merupakan Pengarah Bukan Eksekutif Bebas Takaful Malaysia dan telah dilantik pada 15 Mei 2010. Beliau juga merupakan Pengerusi Jawatankuasa Ganjaran dan Jawatankuasa Risiko Lembaga Pengarah dan ahli Jawatankuasa Audit dan Jawatankuasa Pemilihan.

Zakaria Ismail, aged 62, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 May 2010. He is also the Chairman of the Remuneration Committee and Board Risk Committee and a member of Audit Committee and Nomination Committee.

ZAKARIA ISMAIL





Beliau memperolehi Sarjana Muda Ekonomi dalam

Perakaunan dari Universiti Malaya pada tahun 1977 dan

merupakan ahli Institut Akauntan Malaysia (MIA).

Beliau memulakan kerjayanya pada tahun 1977 sebagai

Akauntan Perbendaharaan di Jabatan Akauntan Negara

(AG). Beliau telah memegang pelbagai jawatan di Jabatan

AG antaranya sebagai Akauntan Kanan Perbendaharaan

pada tahun 1982 dan Akauntan pada tahun 1984. Beliau

telah dipinjamkan kepada Lembaga Letrik Sabah sebagai

Timbalan Pengurus Besar (Kewangan) pada tahun 1987.

Pada tahun 1993, beliau telah dilantik sebagai Timbalan

Pengarah, Bahagian Perkhidmatan Operasi Pusat dan

Agensi (BPOPA) dan kemudiannya menjadi Pengarah

BPOPA pada tahun 1995. Seterusnya, pada tahun

1999 beliau telah dilantik sebagai Pengarah, Bahagian

Pengurusan Perakaunan Cawangan; pada tahun 2000

sebagai Timbalan Akauntan Negara Malaysia dan pada

tahun 2003 sebagai Akauntan Negara Malaysia sehingga

beliau bersara pada bulan Mac 2005.

Kini, beliau juga adalah Pengarah ECM Libra Financial

Group Berhad, Syarikat Perumahan Negara Berhad dan

Indah Water Konsortium Sdn Bhd.






sepuluh (10) tahun yang lalu dan telah menghadiri lapan (8)

mesyuarat Lembaga Pengarah yang diadakan dalam tahun

kewangan berakhir 31 Disember 2013.

He obtained his Bachelor of Economics in Accounting from

the University of Malaya in 1977 and is a member of the

Malaysian Institute of Accountants (MIA).

He started his career in 1977 as Treasury Accountant at the

Accountant General’s (AG) Department. He held various

positions in the AG Department among others as the Senior

Treasury Accountant in 1982 and Accountant in 1984.

He was seconded to the Sabah Electricity Board as the

Deputy General Manager (Finance) in 1987. In 1993, he was

appointed as the Deputy Director of Central Operation and

Agency Services Division (BPOPA) and later he became

the Director of BPOPA in 1995. In 1999, he then served as

the Director of Branch Account Management Division, in

2000 as the Deputy Accountant General of Malaysia and

in 2003 as the Accountant General of Malaysia until his

retirement in March 2005.

Currently, he is also a Director of ECM Libra Financial Group

Berhad, Syarikat Perumahan Negara Berhad and Indah

Water Konsortium Sdn Bhd.





eight (8) Board of Directors’ meetings held during the


Dato’ Othman Abdullah, berusia 65 tahun, adalah


Pengarah Bukan Eksekutif Bebas Takaful Malaysia

pada 1 Disember 2012. Beliau juga merupakan ahli

Jawatankuasa Audit.

Dato’ Othman Abdullah, aged 65, is a Malaysian

citizen and was appointed on 1 December 2012 as an

Independent Non-Executive Director of Takaful Malaysia.

He is also a member of Audit Committee.

DATO’ OTHMAN ABDULLAH





Beliau memperolehi Ijazah Sarjana Muda Sastera dalam Syariah dari Universiti Al–Azhar, Mesir pada tahun 1970, Sarjana Sastera dalam Pengajian Antarabangsa dari Universiti Fairleigh Dickenson, Amerika Syarikat pada tahun 1973, Sarjana Falsafah dalam Sains Politik dan Ijazah Doktor Falsafah dalam Sejarah dari Universiti New york, Amerika Syarikat masing-masing pada tahun 1975 dan 1979.

Beliau memulakan kerjayanya pada tahun 1978 sebagai Pensyarah di Jabatan Syariah, Fakulti Pengajian Islam, Universiti Kebangsaan Malaysia (UKM) sebelum dipinjamkan ke Universiti Islam Antarabangsa Malaysia (UIAM) dari tahun 1983 hingga 1984. Semasa di UKM, beliau telah dilantik sebagai Penyelaras bagi Pendidikan Umum dari tahun 1981 hingga 1982. Pada tahun 1982, beliau berkhidmat sebagai Pemangku Ketua Jabatan Syariah. Beliau juga merupakan Penyelaras Program Diploma dan Sijil Pengajian Islam UKM sehingga tahun 1983. Beliau kembali ke UKM pada tahun 1984 sebagai Prof. Madya di Jabatan Syariah sehingga tahun 1985. Kemudian beliau menjadi Pengarah Eksekutif Pusat Rawatan Islam (MAIS) dari tahun 1996 hingga 1999. Kini, beliau merupakan Pengerusi Eksekutif Pusrawi Corporation Sdn Bhd, ahli Majlis Perundingan Islam di Jabatan Perdana Menteri (JPM), Pengerusi Majlis Pengawasan Syariah Bank Islam Malaysia Berhad dan ahli Majlis Pengawasan Syariah Lembaga Perkhidmatan Kewangan Labuan.

Beliau telah menghasilkan tulisan dalam bidang sejarah pendidikan, ekonomi, perbankan Islam dan perundangan Islam sebanyak 14 buah buku, 7 jilid terjemahan, 300 skrip tv dan 40 kertas kerja. Beliau juga dianugerahkan sebagai ‘Tokoh Ulamak Bestari Negeri Selangor’ pada tahun 2000, ‘Tokoh Ma’al Hijrah Negeri Selangor’ pada tahun 2001 dan Ahli Majlis Agama Islam Negeri Selangor selama 21 tahun.

He graduated with a Bachelor of Arts in Shariah from the University of Al-Azhar, Egypt in 1970, a Master of Arts in International Studies from Fairleigh Dickenson University, USA in 1973, a Master of Philosophy in Political Sciences and a Doctor of Philosophy in History from New york University, USA in 1975 and 1979 respectively.

He started his career in 1978 as a Lecturer at the Shariah Department, Faculty of Islamic Studies, Universiti Kebangsaan Malaysia (UKM) prior to his secondment to the International Islamic University Malaysia (IIUM) from 1983 to 1984. Whilst with UKM, he was appointed as the Coordinator for the General Teachings from 1981 to 1982. In 1982, he served as the Acting Head of the Shariah Department. He was also the Programme Coordinator for Diploma and Certificate in Islamic Studies of UKM until 1983. He returned to UKM in 1984 as a Associate Prof. in the Shariah Department until 1985. He then became an Executive Director of Pusat Rawatan Islam (MAIS) from 1996 to 1999. Currently, he is the Executive Chairman of Pusrawi Corporation Sdn Bhd, a member of the Islamic Consultative Council in the Prime Minister’s Department, the Chairman of the Shariah Supervisory Council of Bank Islam Malaysia Berhad and a member of the Shariah Supervisory Council of Labuan Financial Services Authority.

He has produced writings in educational history, economy, Islamic banking and Islamic law, a total of 14 books, 7 translation bindery, 300 tv scripts and 40 paper works. He was also awarded ‘Tokoh Ulamak Bestari Negeri Selangor’ in 2000, ‘Tokoh Ma’al Hijrah Negeri Selangor’ in 2001 and a member of Religious Council of Selangor State for 21 years.

Dr. Ahmad Shahbari @ Sobri Salamon, berusia 71 tahun,

adalah warganegara Malaysia dan merupakan Pengerusi

Badan Penasihat Syariah (BPS) Takaful Malaysia yang

telah dilantik pada 1 Julai 1985.

Dr. Ahmad Shahbari @ Sobri Salamon, aged 71, is a

Malaysian citizen and is the Chairman of the Shariah

Advisory Body (SAB) of Takaful Malaysia who was

appointed on 1 July 1985.

DR. AHMAD SHAHBARI @ SOBRI SALAMON





Beliau telah memulakan kerjayanya sebagai guru sementara di Madrasah Mashhoor Islamiyah, Pulau Pinang dari tahun 1967 hingga 1970. Beliau kemudiannya berkhidmat sebagai Pegawai Penerangan sementara di Majlis Kebangsaan Hal Ehwal Agama Islam Malaysia mulai tahun 1971 hingga 1973; sebagai Pegawai Hal Ehwal Islam di Bahagian Hal Ehwal Islam, Jabatan Perdana Menteri dari tahun 1973 hingga 1977; sebagai Pegawai Perancangan Pendidikan Agama di Jabatan Kemajuan Masyarakat, Kementerian Pertanian dari tahun 1978 hingga 1980; sebagai Penolong Pengarah Dokumentasi di Bahagian Hal Ehwal Islam, Jabatan Perdana Menteri mulai tahun 1980 hingga 1981 dan sebagai seorang Ketua Penolong Pengarah Pusat Penyelidikan Islam dari tahun 1981 hingga 1984. Beliau kemudiannya berkhidmat dengan Bank Islam Malaysia Berhad sebagai Koordinator Syariah merangkap Setiausaha Majlis Pengawasan Syariah Bank dari tahun 1984 hingga 2001. Beliau pernah berkhidmat sebagai Internal Research Fellow for the Centre of Fiqh Muamalat di Institut Perbankan dan Kewangan Islam Malaysia (IBFIM) dari 2 Januari 2001 hingga 30 Jun 2009.

Beliau kini merupakan Penasihat Syariah Ternama di Pusat Fiqh Muamalat berkuatkuasa dari 1 Julai 2009. Beliau juga adalah ahli Majlis Pengawasan Syariah Bank Islam Malaysia Berhad, ahli Jawatankuasa Panel Syariah Amanah Ikhtiar Malaysia, Pengerusi Jawatankuasa Penasihat Syariah BIMB Securities Sdn Bhd, Pengerusi Jawatankuasa Penasihat Syariah Persatuan Institusi-Institusi Perbankan Islam Malaysia dan Pengerusi Jawatankuasa Penasihat Syariah Kumpulan Wang Simpanan Pekerja. Sebelum dilantik sebagai ahli BPS Takaful Malaysia pada 1 Julai 2002, beliau adalah Setiausaha BPS Takaful Malaysia sejak ia ditubuhkan pada tahun 1985 hingga Disember 2001.

Beliau telah dianugerahkan “Tokoh Maulidur Rasul 1434H/2013M” oleh kerajaan Malaysia kerana sumbangannya dalam industri kewangan Islam.

He started his career as a temporary teacher at Madrasah Mashhoor Islamiyah, Pulau Pinang from 1967 to 1970. He then served as a temporary Information Officer at the National Council for Islamic Religious Affairs Malaysia from 1971 to 1973; as an Islamic Affairs Officer at the Islamic Affairs Division, the Prime Minister’s Department from 1973 to 1977; as the Religious Education Planning Officer at the Community Development Department, Ministry of Agriculture from 1978 to 1980; as an Assistant Documentation Director at the Islamic Affairs Division, the Prime Minister’s Department from 1980 to 1981 and as a Chief Assistant Director of Islamic Research Centre from 1981 to 1984. He then served at Bank Islam Malaysia Berhad as Shariah Coordinator cum Secretary to the Bank’s Shariah Supervisory Council from 1984 to 2001. He was previously an Internal Research Fellow for the Centre of Fiqh Muamalat at Islamic Banking and Finance Institute Malaysia (IBFIM) from 2 January 2001 until 30 June 2009.

He is currently a Distinguished Shariah Advisor for the Centre of Fiqh Muamalat effective from 1 July 2009. He is also a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad, a member of the Shariah Panel of Amanah Ikhtiar Malaysia, the Chairman of the Shariah Advisory Committee of BIMB Securities Sdn Bhd, the Chairman of the Shariah Advisory Committee of the Association of Islamic Banking Institutions Malaysia and the Chairman of the Shariah Advisory Committee of the Employees Provident Fund. Before being appointed as a member of the SAB of Takaful Malaysia on 1 July 2002, he was the Secretary of the SAB of Takaful Malaysia since its inception in 1985 to December 2001.

He was awarded “Tokoh Maulidur Rasul 1434H/2013M” by the government of Malaysia for his contributions in promoting the Islamic finance industry.

Dato’ Mohd Bakir Hj. Mansor, berusia 77 tahun, adalah

warganegara Malaysia dan merupakan ahli Badan

Penasihat Syariah (BPS) Takaful Malaysia, dilantik pada

1 Julai 2002. Beliau memperolehi Shahadah Ulya (Sijil

Tertinggi) dari Kolej Islam Malaya pada tahun 1967.

Dato’ Mohd Bakir Hj. Mansor, aged 77, is a Malaysian

citizen and is a member of the Shariah Advisory Body

(SAB) of Takaful Malaysia, appointed on 1 July 2002. He

obtained the Shahadah Ulya (Highest Certificate) from

Kolej Islam Malaya in 1967.

DATO’ MOHD BAKIR HJ. MANSOR

Ahli / Member




Beliau memperolehi Ijazah Sarjana Muda Undang-undang

(LL.B) dari Universiti Islam Antarabangsa pada tahun 1992

dan Ijazah Sarjana Muda Undang-undang (LL.B Syariah)

pada tahun 1993. Pada tahun 1995, beliau memperolehi

Sarjana Undang-undang (LL.M) dari Universiti Cambridge,

England dan pada tahun 2005 beliau memperolehi Doktor

Falsafah dari Universiti Harvard, Amerika Syarikat. Beliau

juga memperolehi PostDoctorate Fellowship dari Universiti

Harvard pada tahun 2006.

Beliau memulakan kerjayanya dengan Tetuan Zain &

Co. pada tahun 1993 sebagai Penolong Pegawai Undang

Undang. Pada tahun 1995, beliau menyertai Universiti Islam

Antarabangsa sebagai Pensyarah. Kemudian beliau menjadi

Penyelidik di United Nations dari tahun 1998 hingga 1999.

Pada tahun 2002, beliau berkhidmat di Universiti Harvard

sebagai Teaching Fellow sehingga tahun 2003 dan

PostDoctorate Fellow dan Teaching Assistant dari tahun

2005 hingga 2006.

Beliau kini merupakan Rakan kongsi di firma guaman Zaid

Ibrahim & Co. dan juga sebagai Pengarah di ZI Shariah

Advisory Sdn Bhd.

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

She started her career with Messrs. Zain & Co. in 1993 as Assistant Legal Officer. In 1995, she joined International Islamic University Malaysia as a Lecturer. After that, she became a Researcher at United Nations from 1998 until 1999. In 2002, she joined the Harvard University as a Teaching Fellow until 2003 and a PostDoctorate Fellow and Teaching Assistant from 2005 until 2006.

Currently she is a Partner at the law firm, Zaid Ibrahim & Co. as well as a Director at ZI Shariah Advisory Sdn Bhd.

Dr. Aida Othman, berusia 45 tahun, adalah warganegara

Malaysia dan merupakan ahli Badan Penasihat Syariah

(BPS) Takaful Malaysia yang telah dilantik pada 6 Mac

2008.

Dr. Aida Othman, aged 45, is a Malaysian citizen and is a

member of the Shariah Advisory Body (SAB) of Takaful

Malaysia who was appointed on 6 March 2008.

DR. AIDA OTHMAN

Ahli / Member




Berkelulusan Ijazah Sarjana Muda Syariah (Hons) dari

Universiti Malaya pada tahun 1987, Ijazah Sarjana dalam

Ekonomi Islam dari Universiti yarmouk, Jordan dan Doktor

Falsafah (PhD) dalam Perbankan Islam dari Universiti Islam

Antarabangsa Malaysia masing-masing pada tahun 1996

dan 2007. Sekarang ini, beliau memegang jawatan Dekan,

Akademi Pengajian Islam Kontemporari (ACIS), Universiti

Teknologi MARA (UiTM), Shah Alam.

Beliau memulakan kerjayanya sebagai pensyarah di Pusat

Pendidikan Islam, Universiti Teknologi MARA (UiTM), Shah

Alam pada tahun 1988. Beliau telah dilantik memegang

beberapa jawatan pentadbiran seperti Koordinator Sains

Sosial Islam, Ketua Unit Zakat, Timbalan Pengarah, Pusat

Pemikiran dan Kefahaman Islam (CITU) dan Pengarah,

Institut Kajian Zakat Malaysia (IKaZ), Universiti Teknologi

MARA.

Beliau juga adalah ahli jawatankuasa Penyelaras Kurikulum

Program Muamalat, Takaful, Kewangan dan Perbankan

Islam, Kementerian Pengajian Tinggi Malaysia, Ahli

Senat Universiti dan ahli Majlis Dekan Pengajian Islam,

Institusi Pengajian Tinggi Awam Malaysia dan beberapa

jawatankuasa lain di dalam dan luar Universiti.

Beliau juga telah menulis buku dan membentangkan

kertas kerja di peringkat nasional dan antarabangsa dan

terlibat menjalankan penyelidikan dalam bidang ekonomi,

perbankan dan kewangan Islam. Artikel beliau juga telah

diterbitkan dalam jurnal tempatan dan antarabangsa.

He graduated from the University of Malaya in 1987, holding

a Bachelor of Shariah (Hons). He obtained his Master in

Islamic Economics from the University of yarmouk, Jordan

and a Doctor of Philosophy (PhD) in Islamic Banking from

the International Islamic University Malaysia in 1996 and

2007 respectively. Currently, he is a Dean of the Academy of

Contemporary Islamic Studies (ACIS), Universiti Teknologi

MARA (UiTM), Shah Alam.

He joined Universiti Teknologi MARA (UiTM), Shah Alam

in 1988 as an academic staff at the Centre for Islamic

Education. He was appointed to several administration

posts such as Coordinator of Islamic Social Science, Head of

Zakat Unit, Deputy Director, Centre for Islamic Thought and

Understanding (CITU) and Director of the Zakat Research

Institute of Malaysia (IKaZ), Universiti Teknologi MARA.

He also serves as a member of the Curriculum Review

Committee for Muamalat, Takaful, Islamic Banking and

Finance of the Ministry of Higher Education Malaysia,

member of the Senate University, and member of the Dean

Council of Islamic Studies, Higher Learning Institutions of

Malaysia and several other committees inside and outside

of the University.

He has written books and presented papers at national and

international seminars related to Islamic economics, Islamic

banking and finance. His articles have also been published

in local and international journals.

Profesor Dr. Muhamad Rahimi Osman, berusia 53 tahun,

adalah warganegara Malaysia dan merupakan ahli

Badan Penasihat Syariah (BPS) Takaful Malaysia yang

telah dilantik pada 12 Januari 2010.

Professor Dr. Muhamad Rahimi Osman, aged 53, is

a Malaysian citizen and is a member of the Shariah


appointed on 12 January 2010.

PROFESSOR DR. MUHAMAD RAHIMI OSMAN

Ahli / Member




Beliau memperolehi Diploma Pendidikan pada tahun 1977 dan Sarjana Muda dalam Pengajian Islam (Kepujian) pada tahun 1978 dari Universiti Kebangsaan Malaysia. Beliau juga memperolehi Diploma Sains Pengurusan dari Institut Tadbiran Awam Negara (INTAN) pada tahun 1989. Beliau merupakan ahli British Institute of Management (MBIM) sejak tahun 1985.

Beliau memulakan kerjayanya pada tahun 1978 sebagai Penolong Pengarah dan kemudiannya menjadi Penolong Pengarah Kanan di Institut Dakwah dan Latihan Islam (INDAH) Bahagian Hal Ehwal Islam (BAHEIS), Jabatan Perdana Menteri. Beliau kemudian menjadi Atase Agama di Pejabat Pesuruhjaya Tinggi Malaysia di London selama tiga tahun sejak tahun 1982. Selepas pulang ke Malaysia pada tahun 1986, beliau dinaikkan pangkat sebagai Ketua Penolong Pengarah di BAHEIS dan kemudiannya sebagai Ketua Bahagian Amar Ma’ruf dan Ketua Pendaftar Nikah, Cerai dan Rujuk di Jabatan Agama Islam Wilayah Persekutuan (JAWI). Pada tahun 1993, beliau bertugas sebagai Ketua Penolong Pengarah Ekonomi, Pentadbiran Sosial, Pusat Penyelidikan Islam. Pada tahun 1994, beliau merupakan Pengetua Darul Quran Jabatan Kemajuan Islam Malaysia (JAKIM) dan kemudiannya memegang pelbagai jawatan seperti Pengarah Bahagian Keluarga, Sosial dan Pengurusan Masjid (KESUMA), Pengarah Bahagian Penyelidikan, Timbalan Ketua Pengarah (Operasi) dan Ketua Pengarah masing-masing pada tahun 2000, 2003, 2004 dan 2007 sebelum beliau bersara pada 22 April 2011. Sepanjang tempoh menjadi Ketua Pengarah JAKIM, beliau juga bertindak sebagai Setiausaha Jawatankuasa Fatwa Kebangsaan.

Beliau juga pernah berkhidmat sebagai ahli Majlis Penasihat Syariah di Bank Negara Malaysia pada tahun 2008 sehingga tahun 2010. Kini, beliau merupakan ahli Lembaga Pengarah Institut Kefahaman Islam Malaysia (IKIM) dan ahli Jawatankuasa Penasihat Ibadat Haji (Tabung Haji-JAKIM).

He graduated from Universiti Kebangsaan Malaysia with a Diploma in Education in 1977 and a Bachelor of Islamic Studies (Honours) in 1978. He also obtained a Diploma in Management Science from the National Institute of Public Administration (Institut Tadbiran Awam Negara (INTAN) in 1989. He is a member of British Institute of Management (MBIM) since 1985.

He started his career in 1978 as an Assistant Director and later as Senior Assistant Director at the Institut Dakwah dan Latihan Islam (INDAH) of Islamic Affairs Division (Bahagian Hal Ehwal Islam (BAHEIS), Prime Minister’s Department. He then served as Atase Agama at the Malaysian High Commission’s office in London for three years from 1982. Upon returning to Malaysia in 1986, he was promoted to Chief Assistant Director in BAHEIS and thereafter as the Chief of Amar Ma’ruf Division and Chief Registrar of Marriage, Divorce and Ruju’ at the Federal Territory Islamic Religious Department (Jabatan Agama Islam Wilayah Persekutuan (JAWI)). In 1993, he served as Chief Assistant Director of Social, Administration and Economy at the Islamic Research Center. In 1994, he served as Principal at the Darul Quran of the Malaysian Islamic Development Department (Jabatan Kemajuan Islam Malaysia (JAKIM)) and later assumed various positions such as Director of Family, Social and Mosque Management Division (KESUMA), Director of Research Division, Deputy Director General (Operation) and Director General of JAKIM in 2000, 2003, 2004 and 2007 respectively before his retirement on 22 April 2011. He also served as Secretary to the National Fatwa Committee while serving as Director General of JAKIM.

He was also previously a member of the Shariah Advisory Council of Bank Negara Malaysia from 2008 until 2010. He is currently a Board member of the Institute of Islamic Understanding Malaysia (Institut Kefahaman Islam Malaysia (IKIM) and a member of the Hajj Advisory Committee (Tabung Haji-JAKIM).

Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz, berusia

61 tahun, adalah warganegara Malaysia dan merupakan

ahli Badan Penasihat Syariah (BPS) Takaful Malaysia

yang telah dilantik pada 1 Jun 2011.

Dato’ Wan Mohamad Dato’ Sheikh Abdul Aziz, aged 61,

is a Malaysian citizen and is a member of the Shariah


appointed on 1 June 2011.

DATO’ WAN MOHAMAD DATO’ SHEIKH ABDUL AZIZ

Ahli / Member




DATO’ MOHAMED HASSAN KAMIL Pengarah Urusan Kumpulan /

Group Managing Director

LEE HIN SZEKetua Pegawai Kewangan /

Chief Financial Officer

AZIAN KASSIM Ketua Pegawai Pelaburan /

Chief Investment Officer

MOHAMAD ASRI HJ. YUSOFF Setiausaha Syarikat /

Pengurus Besar, Hal Ehwal Korporat /

Company Secretary /

General Manager, Corporate Affairs

NAZRUL HISHAM ABDUL HAMID Pengurus Besar, Operasi Takaful Am /

General Manager, General Takaful Operations

LEEM WHY CHONG Pengurus Besar, Aktuari & Aktuari Dilantik /

General Manager, Actuarial & Appointed Actuary

NORAZLIN MOHD DAHARIPengurus Besar, Perniagaan Korporat /

General Manager, Corporate Business

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MOHD SUHAIMI AHMAD Pengurus Besar, Agensi Runcit /

General Manager, Retail Agency

SHUHAIBAHTULASLAMIAH HURMUZANPengurus Besar, Sumber Manusia /

General Manager, Human Resource

PATRICK WONG CHANG YANGKetua Pegawai Informasi /

Chief Information Officer

MARK ANTHONY NATHAN Pengurus Besar, Bankatakaful /

General Manager, Bancatakaful

LEONG CHEE WANPenolong Pengurus Besar,

Operasi – Takaful Keluarga /

Bankatakaful / Logistik /

Assistant General Manager,

Operations – Family Takaful /

Bancatakaful / Logistics

HANIZA FILZAH HAYANI ABU HANIFFA Penolong Pengurus Besar, Audit Dalaman /

Assistant General Manager, Internal Audit

SHAZLYNA ABDULLAH Penolong Pengurus Besar,

Pematuhan & Pengurusan Risiko /

Assistant General Manager,

Compliance & Risk Management

MALA PATMARAJAHKetua, Komunikasi Korporat /

Head of Corporate Communications

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AUDIT COMMITTEE REPORT

The Board of Directors of Syarikat Takaful Malaysia

Berhad (“Takaful Malaysia”) is pleased to present the Audit

Committee Report for the financial year under review.

MEMBERSHIP AND MEETINGS

The Audit Committee (“Committee”) currently comprises

four (4) members, all of whom are Independent Non-

Executive Directors. The details of members and meetings

held during the financial year ended 31 December 2013 are

as follows:

LAPORAN JAWATANKUASA AUDIT

Lembaga Pengarah Syarikat Takaful Malaysia Berhad

(“Takaful Malaysia”) dengan berbesar hati membentangkan

Laporan Jawatankuasa Audit bagi tahun kewangan yang

dikaji.

KEAHLIAN DAN MESYUARAT

Jawatankuasa Audit (“Jawatankuasa”) kini terdiri daripada

empat (4) orang ahli, di mana kesemuanya adalah Pengarah

Bukan Eksekutif Bebas. Maklumat terperinci mengenai ahli

dan mesyuarat yang diadakan sepanjang tahun kewangan

berakhir 31 Disember 2013 adalah seperti berikut:

Name of Audit

Committee Members

No. of Meetings

Held Attended

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

8 8

Dato’ Sulaiman Mohd yusof(Independent Non-Executive Director)

8 7

Zakaria Ismail(Independent Non-Executive Director)

8 7

Dato’ Othman Abdullah (Independent Non-Executive Director)

8 7

Nama Ahli

Jawatankuasa Audit

Bil. Mesyuarat

Diadakan Dihadiri

Mahadzir Azizan(Pengerusi) (Pengarah Bukan Eksekutif Bebas Kanan)

8 8

Dato’ Sulaiman Mohd yusof(Pengarah Bukan Eksekutif Bebas)

8 7

Zakaria Ismail(Pengarah Bukan Eksekutif Bebas)

8 7

Dato’ Othman Abdullah (Pengarah Bukan Eksekutif Bebas)

8 7

Dato’ Othman Abdullah is a member of the Malaysian

Institute of Accountants (“MIA”). Thus, Takaful Malaysia

complies with Paragraph 15.09(1)(c)(i) of the Main Market

Listing Requirements (“Listing Requirements”) of Bursa

Malaysia Securities Berhad (“Bursa Securities”) which

stipulate that at least one (1) member of the Committee

must be a member of the MIA.

The Committee met eight (8) times during the financial

year. The meetings were appropriately structured and

conducted through the use of agenda which were

distributed to members with sufficient notification. The

Group Managing Director, the Chief Financial Officer and

the Chief Internal Auditor normally attend the meetings.

Dato’ Othman Abdullah adalah ahli Institut Akauntan

Malaysia (“MIA”). Oleh itu, Takaful Malaysia telah mematuhi

Perenggan 15.09(1)(c)(i) Keperluan Penyenaraian Pasaran

Utama (“Keperluan Penyenaraian”) Bursa Malaysia

Securities Berhad (“Bursa Securities”) yang menggariskan

bahawa sekurang-kurangnya seorang (1) ahli Jawatankuasa

mestilah merupakan ahli MIA.

Jawatankuasa telah bermesyuarat sebanyak lapan (8) kali

pada tahun kewangan ini. Mesyuarat tersebut telah disusun

dan dijalankan dengan sewajarnya melalui penggunaan

agenda yang diedarkan kepada ahli terlebih dahulu dengan

notis yang mencukupi. Pengarah Urusan Kumpulan, Ketua

Pegawai Kewangan dan Ketua Audit Dalaman selalunya

menghadiri mesyuarat tersebut. Dalam tahun kewangan

berakhir 31 Disember 2013, Pengarah Urusan Kumpulan

dan Penolong Pengurus Besar / Ketua Audit Dalaman




During the financial year ended 31 December 2013, the

Group Managing Director and the Assistant General

Manager / Head of Internal Audit attended all the meetings

held, while the Chief Financial Officer attended 6 out of 8

meetings held.

TERMS OF REFERENCE

Composition

The members of the Committee shall be appointed by the

Board from amongst their numbers and shall comprise

of at least three (3) members, all of whom must be

Non-Executive Directors with majority of them shall be

Independent Directors. An Independent Non-Executive

Director shall be the one who fulfils the requirements as

provided in the Bursa Securities Listing Requirements and

the guidelines of Bank Negara Malaysia (“BNM”).

At least one (1) member of the Committee:

1) must be a member of the MIA; or

2) if he is not a member of the MIA, he must have at least

three (3) years’ working experience and:-

(a) he must have passed the examinations specified in

Part I of the First Schedule of the Accountants Act

1967; or

(b) he must be a member of one of the associations of

accountants specified in Part II of the First Schedule

of the Accountants Act 1967; or

3) fulfils such other requirements as prescribed or

approved by Bursa Securities.

The members of the Committee shall elect a Chairman

from amongst their numbers who shall be an Independent

Non-Executive Director. If a member of the Committee

resigns, dies or for any reason ceases to be a member

with the result that the number of members are reduced

below three (3), the Board shall within three (3) months

of that event, appoint such number of new members as

may be required to make up the minimum number of three

(3) members. No alternate Director can be appointed as a

member of the Committee.

The Board shall review the term of office and performance

of the Committee and each of its members at least once

every three (3) years to ensure the Committee and

members have carried out their duties in accordance with

their terms of reference.

menghadiri kesemua mesyuarat yang diadakan, manakala

Ketua Pegawai Kewangan menghadiri 6 daripada 8

mesyuarat yang diadakan.

TERMA RUJUKAN

Komposisi

Ahli Jawatankuasa hendaklah dilantik oleh Lembaga

Pengarah daripada kalangan mereka dan hendaklah

terdiri daripada sekurang-kurangnya tiga (3) orang ahli, di

mana kesemuanya hendaklah terdiri dari Pengarah Bukan

Eksekutif dengan majoritinya adalah Pengarah Bebas.

Seorang Pengarah Bukan Eksekutif Bebas hendaklah

merupakan ahli yang memenuhi keperluan seperti yang

diperuntukkan dalam Keperluan Penyenaraian Bursa

Securities dan garis panduan Bank Negara Malaysia

(“BNM”).

Sekurang-kurangnya seorang (1) ahli Jawatankuasa:

1) mestilah merupakan ahli MIA; atau

2) jika beliau bukan ahli MIA, beliau mestilah mempunyai

pengalaman bekerja sekurang-kurangnya selama tiga

(3) tahun dan:-

(a) beliau mestilah lulus peperiksaan yang dinyatakan

dalam Bahagian I Jadual Pertama Akta Akauntan

1967; atau

(b) beliau mestilah merupakan ahli salah sebuah

persatuan akauntan yang dinyatakan dalam

Bahagian II Jadual Pertama Akta Akauntan 1967;

atau

3) memenuhi keperluan-keperluan lain yang digariskan

atau diluluskan oleh Bursa Securities.

Ahli Jawatankuasa hendaklah melantik Pengerusi daripada

kalangan mereka yang merupakan seorang Pengarah Bukan

Eksekutif Bebas. Sekiranya seorang ahli Jawatankuasa

meletak jawatan, meninggal dunia atau atas sebarang

sebab tidak lagi menjadi ahli sehingga menyebabkan

bilangan ahli kurang daripada tiga (3) orang, maka

Lembaga Pengarah hendaklah melantik ahli baru dalam

bilangan yang diperlukan untuk mencukupkan bilangan

minimum ahli kepada tiga (3) orang dalam tempoh tiga (3)

bulan dari peristiwa tersebut. Pengarah gantian tidak boleh

dilantik sebagai ahli Jawatankuasa.

Lembaga Pengarah hendaklah mengkaji semula tempoh

perkhidmatan dan prestasi Jawatankuasa Audit dan setiap

ahlinya sekurang-kurangnya setiap tiga (3) tahun sekali bagi

memastikan Jawatankuasa dan ahlinya telah menjalankan

tugas-tugas mereka berdasarkan terma rujukan.




quorum and Committee’s Procedures

Meetings shall be conducted at least four (4) times annually

or more frequently as circumstances dictate.

In order to form a quorum for the meeting, the majority

of members present must be Independent Non-Executive

Directors. In the absence of the Chairman, the members

present shall elect a Chairman for the meeting from

amongst the members present.

The Company Secretary shall be the Secretary of the

Committee. The Secretary, in concurrence with the

Chairman, shall draw up an agenda, which shall be

circulated together with relevant support papers within

reasonable time prior to each meeting to the members of

the Committee. The Secretary shall circulate the minutes of

meetings to all members of the Committee.

The Committee may, as and when deemed necessary,

invite other Board members and / or Senior Management

members to attend the Committee meetings.

The Committee shall, at least twice (2) a year, meet with the

external auditors to discuss any matter with the Committee

without the presence of any executive members of the

Board and Senior Management. The Chairman of the

Committee shall convene a meeting of the Committee to

consider any matter which the external auditors believe

should be brought to the attention of the Directors or

shareholders.

The Committee shall regulate the manner of proceedings

of its meetings, having regard to normal conventions on

such matter.

Authority

The Committee is authorised by the Board to investigate

any matter within its terms of reference. It is authorised to

seek any information it requires from any employee and

all employees are required to cooperate with any request

made by the Committee.

The Committee shall have full and unrestricted access to

any information pertaining to the Group. The Committee

shall have the resources that are required to perform its

duties. The Committee can obtain, at the expense of Takaful

Malaysia, external legal or other independent professional

advice it considers necessary.

Korum dan Prosedur Jawatankuasa

Mesyuarat hendaklah diadakan sekurang-kurangnya

empat (4) kali setahun atau dengan lebih kerap, mengikut

keperluan.

Bagi membentuk korum mesyuarat, majoriti ahli yang

hadir mestilah merupakan Pengarah Bukan Eksekutif

Bebas. Sekiranya Pengerusi tidak hadir, ahli-ahli yang hadir

hendaklah melantik seorang Pengerusi bagi mesyuarat

tersebut daripada kalangan ahli-ahli yang hadir.

Setiausaha Syarikat hendaklah bertindak sebagai Setiausaha

Jawatankuasa. Atas persetujuan Pengerusi, Setiausaha

hendaklah merangka agenda yang akan diedarkan kepada

ahli Jawatankuasa bersama-sama dengan kertas sokongan

yang berkaitan dalam tempoh yang berpatutan sebelum

setiap mesyuarat. Setiausaha hendaklah mengedarkan

minit mesyuarat kepada semua ahli Jawatankuasa.

Jawatankuasa boleh, apabila dianggap perlu, menjemput

ahli Lembaga Pengarah lain dan / atau ahli Pengurusan

Kanan untuk menghadiri mesyuarat Jawatankuasa.

Jawatankuasa ini hendaklah bermesyuarat dengan juruaudit

luar sekurang-kurangnya dua (2) kali setahun, untuk

membincangkan sebarang perkara dengan Jawatankuasa

tanpa kehadiran mana-mana ahli eksekutif Lembaga

Pengarah dan Pengurusan Kanan. Pengerusi Jawatankuasa

akan mengadakan mesyuarat untuk mempertimbangkan

sebarang perkara yang pihak juruaudit luar percaya perlu

di bawa kepada perhatian para Pengarah atau pemegang

saham.

Jawatankuasa hendaklah mengatur prosiding

mesyuaratnya, dengan mengambil kira konvensyen biasa

berhubung perkara tersebut.

Kuasa

Jawatankuasa diberi kuasa oleh Lembaga Pengarah untuk

menyiasat sebarang perkara dalam terma rujukannya.

Jawatankuasa juga diberi kuasa untuk mendapatkan

sebarang maklumat yang diperlukan daripada mana-mana

kakitangan dan semua kakitangan dikehendaki memberi

kerjasama terhadap sebarang permintaan yang dibuat oleh

Jawatankuasa.

Jawatankuasa hendaklah mempunyai akses penuh dan

tanpa had kepada sebarang maklumat berkaitan Kumpulan

dan hendaklah mempunyai sumber yang diperlukan untuk

melaksanakan tugasnya. Jawatankuasa boleh mendapatkan

nasihat perundangan atau profesional bebas luar lain yang

dianggap perlu, dengan perbelanjaan ditanggung oleh

Takaful Malaysia.


The Committee shall have direct communication channels

with the internal and external auditors, the risk management

personnel and with Senior Management of the Group and

shall be able to convene meetings with the external auditors,

the internal auditors or both, excluding the attendance of

other directors and employees of the Company, whenever

deemed necessary.

Where the Committee is of the view that a matter

reported by it to the Board has not been satisfactorily

resolved resulting in a breach of Bursa Securities Listing

Requirements, the Committee shall promptly report such

matter to the Bursa Securities.

Duties and Responsibilities

The primary objective of the Committee is to provide

an independent oversight of Takaful Malaysia’s financial

reporting and internal control system and ensuring checks

and balances within Takaful Malaysia.

Therefore, the duties and responsibilities of the Committee

include the followings:

• to review with the external auditor and report to the

Board, the audit scope and plan, including any changes

to the planned scope of the external audit plan and

evaluation of the system of internal control.

• to review the adequacy of the internal audit scope

and plan, functions, competency and resources of the

internal audit functions and that it has the necessary

authority to carry out its work.

• to review the external and internal audit reports to

ensure that appropriate and prompt remedial action is

taken by Management on major deficiencies in controls

or procedures that are identified and reported to the

Board.

• to review the major audit findings and Management’s

response during the year with Management, external

auditors and internal auditors, including the status of

previous audit recommendations.

• to review the independence and objectivity of the

external auditors and their services, including non-

audit services and the professional fees, so as to ensure

a proper balance between objectivity and value for

money.

Jawatankuasa hendaklah mempunyai saluran komunikasi

secara langsung dengan juruaudit dalaman dan juruaudit

luar, kakitangan pengurusan risiko dan dengan Pengurusan

Kanan Kumpulan dan boleh mengadakan mesyuarat dengan

juruaudit luar, juruaudit dalaman atau kedua-duanya sekali,

tanpa dihadiri oleh para pengarah dan kakitangan Syarikat,

bila-bila dianggap perlu.

Sekiranya Jawatankuasa berpendapat bahawa sebarang

perkara yang dilaporkan olehnya kepada Lembaga Pengarah

masih belum diselesaikan dengan memuaskan sehingga

menyebabkan pelanggaran Keperluan Penyenaraian Bursa

Securities, Jawatankuasa hendaklah melaporkan dengan

segera perkara tersebut kepada Bursa Securities.

Tugas dan Tanggungjawab

Objektif utama Jawatankuasa adalah untuk menyediakan

pengawasan bebas laporan kewangan Takaful Malaysia

dan sistem kawalan dalaman serta memastikan semakan

dan keseimbangan di dalam Takaful Malaysia.

Oleh yang demikian, tugas dan tanggungjawab

Jawatankuasa adalah termasuk perkara-perkara berikut:

• mengkaji dengan juruaudit luar dan melaporkan kepada

Lembaga Pengarah, skop dan pelan audit, termasuk

sebarang perubahan kepada skop yang dirancang

bagi pelan audit luar dan penilaian bagi sistem kawalan

dalaman.

• mengkaji kecukupan skop dan pelan audit dalaman,

fungsi-fungsi, daya saing dan sumber fungsi audit

dalaman dan sama ada ianya mempunyai kuasa

diperlukan untuk menjalankan tugas.

• mengkaji laporan audit dalaman dan luar bagi

memastikan supaya tindakan segera dan sewajarnya

diambil oleh pihak Pengurusan terhadap kekurangan

utama dalam kawalan atau prosedur yang telah dikenal

pasti dan dilaporkan kepada Lembaga Pengarah.

• mengkaji penemuan audit utama dan tindakan

Pengurusan sepanjang tahun dengan pihak Pengurusan,

juruaudit luar dan juruaudit dalaman termasuk status

syor-syor audit yang terdahulu.

• mengkaji kebebasan dan objektif juruaudit luar dan

perkhidmatan mereka, termasuk perkhidmatan

bukan audit dan yuran profesional, untuk memastikan

keseimbangan yang betul antara objektif dan nilai untuk

wang.




• to review the appointment, performance, audit fees and

any question regarding the resignation or dismissal of

external auditors before making recommendations to

the Board.

• to review the quarterly and year-end financial

statements, before the approval by the Board, focusing

particularly on:

- changes in or implementation of major accounting

policy and practice;

- significant adjustments and unusual event arising

from the audit;

- the going concern assumption; and

- compliance with accounting standards, Bursa

Securities and other legal requirements.

• to review the Chairman’s statement and corporate

governance disclosures made in the Directors’ Report.

• to discuss problems and reservations arising from the

interim and final audits, and any matter the auditor may

wish to discuss (in the absence of Management where

necessary).

• to review the Internal Audit Charter, budget and staffing

of the Internal Audit Division.

• to review internal controls, including the scope of

the internal audit governance, procedures, findings,

and recommend action to be taken by Management.

The internal audit reports should not be subject to

the clearance of the Chief Executive Officer / Group

Managing Director or Executive Directors.

• to direct and where appropriate supervise any special

projects or investigation considered necessary, and

review investigation report on any major defalcation,

frauds and thefts.

• to ensure that the accounts are prepared in a timely

and accurate manner for regulatory, management and

general reporting purposes, with regular reviews carried

out on the adequacy of provisions made.

• to review any related party transaction and conflict of

interest situation that may arise within the Company

or the Group, including any transaction, procedure or

course of conduct that raises questions of management

integrity.

• mengkaji pelantikan, prestasi, yuran audit dan

sebarang persoalan berhubung peletakan jawatan atau

pemecatan juruaudit luar sebelum memberi cadangan

kepada Lembaga Pengarah.

• mengkaji keputusan suku tahunan dan penyata

kewangan akhir tahun, sebelum kelulusan Lembaga

Pengarah dengan menumpu terutamanya kepada:

- perubahan atau pelaksanaan dasar dan praktis

perakaunan utama;

- pelarasan ketara dan peristiwa penting dan luar

biasa timbul dari audit;

- andaian perniagaan berterusan; dan

- pematuhan kepada standard kewangan, Bursa

Securities dan keperluan undang-undang.

• mengkaji penyata Pengerusi dan pemberitahuan urus

tadbir korporat yang dibuat dalam Laporan Pengarah.

• membincangkan masalah dan persoalan yang wujud

dari audit interim dan akhir dan sebarang perkara yang

ingin dibincangkan oleh juruaudit (tanpa kehadiran

pihak Pengurusan jika perlu).

• mengkaji Piagam Audit Dalaman, belanjawan dan

komposisi kakitangan Bahagian Audit Dalaman.

• mengkaji kawalan dalaman, termasuk skop urus tadbir,

prosedur, penemuan audit dalaman, dan mencadangkan

tindakan yang perlu diambil oleh Pengurusan. Laporan

audit dalaman tidak tertakluk kepada kebenaran

daripada Ketua Pegawai Eksekutif / Pengarah Urusan

Kumpulan atau Pengarah Eksekutif.

• mengarah dan sekiranya wajar, menyelia sebarang

projek atau siasatan khas jika perlu, dan mengkaji

laporan siasatan berkenaan sebarang penyalahgunaan,

penipuan dan kecurian yang besar.

• memastikan akaun disediakan tepat pada masanya dan

dengan cara yang tepat bagi tujuan pengawalseliaan,

pengurusan dan laporan umum, dengan ulasan yang

selalu dijalankan terhadap kecukupan peruntukan yang

telah dibuat.

• mengkaji sebarang urusniaga pihak berkaitan dan

situasi konflik kepentingan yang mungkin timbul dalam

Syarikat atau Kumpulan, termasuk sebarang urusniaga,

prosedur atau tatacara yang menimbulkan persoalan

terhadap kewibawaan pihak Pengurusan.

• memastikan bahawa isu-isu penyeliaan yang

dibangkitkan oleh Bank Negara Malaysia diselesaikan

tepat pada masanya.




• to ensure that supervisory issues raised by Bank Negara

Malaysia are resolved in a timely manner.

• to perform any other functions as may be agreed by the

Board.

SUMMARY OF ACTIVITIES OF THE COMMITTEE

The activities undertaken by the Committee during the

financial year under review include the following:

• Reviewed and monitored with the external auditors,

the results and progress of the audit for the financial

year ended 31 December 2012, the audit report and the

Management letter, including Management’s response

thereto.

• Discussed the re-appointment of external auditors

for the financial year ended 31 December 2013 and

assessed their sustainability and independence for re-

appointment.

• Reviewed the external auditors’ scope of work and audit

plans for the financial year ended 31 December 2013.

Prior to the audit, representatives from the external

auditors presented their audit strategy and plan.

• Discussed the audit fees payable to the external

auditors.

• Discussed with external auditors any matters that

warrant the Board and Shareholders’ attention without

the presence of the member of the Executive Directors

and Management.

• Reviewed the internal audit reports and special audit

reports (i.e. Finance, Operational and IT Audit Reports)

which highlighted the audit issues, recommendations

and Management’s response thereto. Discussed with

Management on actions taken or to be taken to improve

the system of internal control based on improvement

opportunities identified in the internal audit reports.

• Reviewed follow-up reports by the internal auditors

on the status of actions taken by the Management on

recommendations suggested in the audit reports.

• Reviewed follow-up reports by the internal auditors on

BNM’s examination findings and status of actions taken

by the Management on issues raised by BNM.

• melaksanakan sebarang fungsi lain yang mungkin

dipersetujui oleh Lembaga Pengarah.

RINGKASAN AKTIVITI-AKTIVITI JAWATANKUASA

Aktiviti-aktiviti yang telah dijalankan oleh Jawatankuasa

sepanjang tahun kewangan yang dikaji termasuk:

• Mengkaji dan memantau dengan juruaudit luar,

keputusan dan perkembangan audit bagi tahun

kewangan berakhir 31 Disember 2012, laporan audit

dan surat Pengurusan, termasuk tindakan Pengurusan

berkaitannya.

• Berbincang mengenai pelantikan semula juruaudit

luar bagi tahun kewangan berakhir 31 Disember 2013

dan menilai kesesuaian dan kebebasan mereka untuk

pelantikan semula.

• Mengkaji skop kerja dan rancangan audit juruaudit

luar bagi tahun kewangan berakhir 31 Disember 2013.

Sebelum audit dijalankan, wakil-wakil juruaudit luar

telah membentangkan strategi dan rancangan audit.

• Berbincang mengenai yuran audit yang perlu dibayar

kepada juruaudit luar.

• Berbincang dengan juruaudit luar berhubung sebarang

perkara yang memerlukan perhatian Lembaga Pengarah

dan Pemegang Saham tanpa kehadiran ahli Lembaga

Pengarah Eksekutif dan pihak Pengurusan.

• Mengkaji laporan audit dalaman dan audit khas

(seperti Laporan-Laporan Audit Kewangan, Operasi

dan Teknologi Maklumat) yang menekankan isu-isu

audit cadangan dan maklum balas pihak Pengurusan

yang berkaitan. Berbincang dengan Pengurusan

mengenai tindakan yang telah dan akan diambil

untuk mempertingkatkan sistem kawalan dalaman

berdasarkan peluang-peluang penambahbaikan yang

telah dikenal pasti dalam laporan audit dalaman.

• Mengkaji laporan susulan oleh juruaudit dalaman

mengenai status tindakan yang diambil oleh pihak

Pengurusan terhadap cadangan yang diberikan dalam

laporan audit.


berhubung isu-isu yang dibangkitkan berdasarkan

penemuan daripada pemeriksaan oleh BNM dan status

tindakan yang diambil oleh pihak Pengurusan mengenai

isu yang dibangkitkan oleh BNM.




• Reviewed follow-up reports by the internal auditors on

external auditors’ findings as set out in the Management

letter and status of actions taken by the Management

on issues raised by the external auditors.

• Reviewed the audited financial statements of the

Company prior to submission to the Board for their

consideration and approval. The review was to ensure

that the audited financial statements were drawn up

in accordance with the provisions of the Companies

Act 1965 and the applicable approved accounting

standards.

• Reviewed the Compliance reports including compliance

risk assessment, prioritization and management policy,

and quarterly compliance critical self assessment

confirmation.

• Reviewed the quarterly unaudited financial results

announcements before recommending them for the

Board’s approval.

• Reviewed related party transactions within the Group.

• Reviewed the disclosure statements in the Annual

Report such as Corporate Governance Statement,

Statement on Risk Management and Internal Control,

Audit Committee Report and Chairman’s Statement in

compliance with Bursa Securities Listing Requirements

and Securities Commission.

• Reviewed the Takaful myAl-Afdhal Annual Report and

Investment-Linked Funds Annual Report.

• Reviewed the audit on Human Resource Payroll Policies

and Processes for 2012.

INTERNAL AUDIT FUNCTION AND ACTIVITIES

The Internal Audit Division is independent of the activities or

operations of other operating units and reports directly to

the Audit Committee. The principal role of the division is to

undertake independent regular and systematic reviews of

the systems of internal controls so as to provide reasonable

assurance that such systems continue to operate

satisfactorily and effectively. The internal audit practices a

risk-based approach in its audit plan and examination.


berhubung isu yang dibangkitkan dalam surat

Pengurusan oleh juruaudit luar dan status tindakan yang

diambil oleh pihak Pengurusan mengenai isu tersebut.

• Mengkaji penyata kewangan Syarikat yang telah diaudit

sebelum diserahkan kepada Lembaga Pengarah bagi

pertimbangan dan kelulusan mereka. Kajian ini adalah

untuk memastikan supaya penyata kewangan yang

telah diaudit disediakan mengikut peruntukan Akta

Syarikat 1965 dan piawaian perakaunan berkaitan yang

diluluskan.

• Mengkaji laporan Pematuhan termasuk penaksiran

pematuhan risiko, pengutamaan dan polisi pengurusan,

dan pengesahan penaksiran sendiri pematuhan kritikal

suku tahunan.

• Mengkaji pengumuman keputusan kewangan suku

tahunan yang belum diaudit sebelum disyorkan kepada

Lembaga Pengarah untuk kelulusan.

• Mengkaji urusniaga pihak yang berkaitan dalam

Kumpulan.

• Menyediakan bimbingan ke atas penyediaan penyata

pendedahan dalam Laporan Tahunan seperti Penyata

Urus Tadbir Korporat, Penyata Pengurusan Risiko

dan Kawalan Dalaman, Laporan Jawatankuasa Audit

dan Penyata Pengerusi dalam mematuhi Keperluan

Penyenaraian Bursa Securities dan Suruhanjaya Sekuriti.

• Mengkaji Laporan Tahunan Takaful myAl-Afdhal dan

Laporan Tahunan Dana Berkaitan Pelaburan.

• Mengkaji audit Polisi dan Proses Sumber Manusia bagi

tahun 2012.

FUNGSI DAN AKTIVITI-AKTIVITI AUDIT DALAMAN

Bahagian Audit Dalaman adalah bebas daripada aktiviti

atau operasi unit-unit operasi lain dan melapor terus

kepada Jawatankuasa Audit. Peranan utama bahagian ini

adalah untuk menjalankan kajian sistem kawalan dalaman

secara bebas, kerap dan sistematik supaya dapat memberi

jaminan yang sewajarnya bahawa sistem tersebut mampu

terus beroperasi secara berkesan dan memuaskan. Audit

dalaman mengamalkan pendekatan berasaskan risiko

dalam rancangan audit dan pemeriksaannya.

Adalah menjadi tanggungjawab Bahagian Audit Dalaman

untuk menyediakan laporan bebas dan objektif kepada

Jawatankuasa tentang status kawalan dalaman di pelbagai

unit operasi dalam Kumpulan serta tahap pematuhan unit-

unit tersebut terhadap dasar dan prosedur Kumpulan serta

terhadap keperluan berkanun yang berkaitan.




It is the responsibility of the Internal Audit Division to provide

the Committee with independent and objective reports on

the state of internal control of the various operating units

within the Group and the extent of compliance of the units

with the Group’s established policies and procedures as

well as relevant statutory requirements.

The following activities were undertaken by the Internal

Audit Division during the financial year under review:

• Executed independent assurance role by performing

scheduled reviews on the effectiveness, efficiency and

economical of control mechanism to address risks and

concerns in the areas of operations, financial, information

technology, product development, investment and

strategic functions on a risk based audit approach as

set out in the Formalised Internal Audit Strategic Plan

(FyE 2013 and 2014).

• Provided reasonable assurance on the extent of

compliance with established policies and procedures

as well as BNM statutory requirements and other

regulatory bodies.

• Rendered advisory services to the Management of the

Company and its subsidiaries.

• Recommended improvements to the business

processes and enhancement to the existing system of

internal controls.

• Conducted follow-up audit on status of actions taken

by the Management on recommendations suggested

in audit reports of internal auditors, external auditors,

BNM examiners, etc.

• Carried out special reviews and investigations as

requested by Senior Management and endorsement

from the Committee Chairman.

• Reviewed the adequacy and appropriateness of the

internal controls and risk exposures in the new product

packages based on the revised Product Development

Framework (PDF).

• Provided guidance and advices to the Project Steering

Committee for new and revised products before

launching.

• Conducted reviews on IT system set-ups, tests and

deployments before deployment into production.

Aktiviti-aktiviti berikut telah dijalankan oleh Bahagian Audit

Dalaman dalam tahun kewangan yang dikaji:

• Melaksanakan peranan jaminan bebas dengan

membuat ulasan kajian berjadual ke atas keberkesanan,

kecekapan dan mekanisma kawalan ekonomi untuk

mengutarakan risiko dan keutamaan dalam bidang

operasi, kewangan, teknologi maklumat, pembangunan

produk, pelaburan dan fungsi-fungsi strategik yang

menggunapakai pendekatan audit berasaskan risiko

seperti yang dinyatakan dalam Pelan Strategik Audit

Dalaman Rasmi (Tahun Kewangan Berakhir 2013 dan

2014).

• Menyediakan jaminan yang munasabah ke atas tahap

pematuhan polisi dan prosedur yang telah disediakan

di samping keperluan statutori BNM dan badan-badan

perundangan lain.

• Memberi khidmat nasihat kepada Pengurusan dan

subsidiari Syarikat.

• Mencadangkan peningkatan ke atas proses perniagaan

dan penambahbaikan bagi sistem kawalan dalaman

yang sedia ada.

• Menjalankan audit susulan berhubung status tindakan

yang diambil oleh Pengurusan berdasarkan cadangan

yang dibuat dalam penemuan audit juruaudit dalaman,

juruaudit luar, pegawai pemeriksa BNM dan lain-lain.

• Menjalankan semakan khas dan penyiasatan seperti

yang diminta oleh Pengurusan Kanan dan pengesahan

daripada Pengerusi Jawatankuasa.

• Mengkaji semula kecukupan dan kesesuaian kawalan

dalaman dan pendedahan risiko di dalam pakej produk

baru berdasarkan semakan semula Rangka Kerja

Pembangunan Produk.

• Menyediakan bimbingan dan nasihat kepada

Jawatankuasa Pemandu Projek sebelum pelancaran

produk baru dan lama.

• Menjalankan semakan ke atas penyediaan sistem

teknologi maklumat, ujian dan penggunaan sebelum

ianya dilaksanakan.

• Menjalankan audit ke atas perkakasan komputer,

sistem operasi dan aplikasi serta rangkaian Teknologi

Komunikasi Maklumat (ICT) Takaful Malaysia.

• Menjadi pemerhati dalam tender dan proses

pemilihannya dan dalam Jawatankuasa-Jawatankuasa

yang lain.




• Conducted audit computer hardware, operating

and application systems as well as the Information

Communication Technology (ICT) network of Takaful

Malaysia.

• Participated in tender and selection process and other

Committees in the capacity of an observer.

• Conducted independent evaluation of the adequacy

and relevance of Business Continuity Management

(BCM) policy, strategies, procedures and testing of the

Disaster Recovery Plan (DRP).

• Reviewed and compiled the updates on the Supervisory

Concerns prior to submission to Bank Negara Malaysia.

• Reviewed the outsourcing activities for the Company.

• Assisted Management in preparing the Audit Committee

Report and Statement on Risk Management and Internal

Control for disclosure in the Annual Report.

• Reviewed the Takaful myAl-Afdhal Annual Report and

Investment-Linked Funds Annual Report.

Reports from the audit assignments are forwarded to the

Management for attention and necessary corrective actions

as recommended. The Management is responsible for

ensuring that corrective actions on reported weaknesses

are taken within the required time frame. The costs

incurred in maintaining the Internal Audit function which

is performed in-house for the financial year under review

was approximately RM1.7 million comprising mainly salaries,

travelling and accommodation expenses and subsistence

allowance for audit assignments.

• Menjalankan penilaian bebas bagi menentukan

kesempurnaan dan kesesuaian Pengurusan

Kesinambungan Perniagaan (BCM) dasar, strategi,

prosedur dan ujian Pelan Pemulihan Bencana (DRP).

• Menyemak dan mengumpul data-data terkini

Supervisory Concern sebelum diserahkan kepada Bank

Negara Malaysia.

• Mengkaji semula aktiviti-aktiviti perkhidmatan luar yang

dilaksanakan oleh Syarikat.

• Membimbing Pengurusan dalam menyediakan Laporan

Jawatankuasa Audit dan Penyata Kawalan Dalaman

untuk dizahirkan dalam Laporan Tahunan.

• Mengkaji Laporan Tahunan Takaful myAl-Afdhal dan

Laporan Tahunan Dana Berkaitan Pelaburan.

Laporan daripada tugasan audit dikemukakan kepada pihak

Pengurusan untuk perhatian dan tindakan pembetulan

yang perlu seperti yang dicadangkan. Pihak Pengurusan

bertanggungjawab memastikan tindakan pembetulan

terhadap kelemahan yang dilapor dilaksanakan dalam

jangka masa yang ditetapkan. Jumlah kos yang terbabit

bagi mengekalkan fungsi Audit Dalaman yang dilakukan

secara dalaman bagi tahun kewangan yang dikaji adalah

lebih kurang RM1.7 juta di mana ia merangkumi sebahagian

besarnya adalah gaji, elaun perjalanan dan penginapan dan

elaun sara hidup bagi menjalankan tugasan audit.




PENYATA URUS TADBIR KORPORAT

Lembaga Pengarah Syarikat Takaful Malaysia Berhad

(“Takaful Malaysia”) terus mematuhi dan menyokong

sepenuhnya Kod Urus Tadbir Korporat Malaysia 2012

(“MCCG 2012”) dan sentiasa komited dalam memastikan

supaya Prinsip-prinsip dan Cadangan-cadangan

dipatuhi dan diamalkan oleh keseluruhan Kumpulan bagi

membolehkan urus selia hal-ehwal Kumpulan dikendalikan

secara profesional, bertanggungjawab dan berwibawa

dengan objektif untuk melindungi dan mempertingkatkan

nilai pelaburan pemegang saham dan prestasi kewangan

Kumpulan.

Lembaga Pengarah dengan ini berbesar hati melaporkan

pelaksanaan penggunaan Prinsip-prinsip MCCG 2012

dan sejauh mana Kumpulan telah mematuhi Cadangan-

cadangan oleh MCCG 2012 sebagaimana yang ditetapkan

menurut MCCG 2012, Keperluan Penyenaraian Pasaran

Utama (“Keperluan Penyenaraian”) Bursa Malaysia

Securities Berhad (“Bursa Securities”) dan Panduan Urus

Tadbir Korporat (“Panduan CG”) yang dikeluarkan oleh

Bursa Malaysia Berhad sepanjang tahun kewangan yang

dikaji.

PENGARAH

Lembaga Pengarah

Lembaga Pengarah bertanggungjawab terhadap

keseluruhan aspek urus tadbir korporat Kumpulan dan juga

diamanahkan dengan tanggungjawab dalam melaksanakan

penjagaan yang sewajarnya ke atas Syarikat serta sumber-

sumber Kumpulan bagi memelihara kepentingan para

pemegang saham dan memastikan pengurusan perniagaan

yang sewajarnya.

Mesyuarat Lembaga Pengarah

Mesyuarat Lembaga Pengarah dijadualkan terlebih dahulu

pada permulaan tahun kalendar dengan mesyuarat

tambahan diadakan bila perlu. Sembilan (9) mesyuarat

Lembaga Pengarah telah diadakan pada tahun kewangan

yang dikaji dengan butiran kehadiran setiap Pengarah

seperti berikut:



CORPORATE GOVERNANCE STATEMENT

The Board of Directors (“the Board”) of Syarikat Takaful

Malaysia Berhad (“Takaful Malaysia”) continues to subscribe

and fully support the Malaysian Code on Corporate

Governance 2012 (“MCCG 2012”) and is committed to ensure

that the Principles and Recommendations are observed and

practised throughout the Group so that the affairs of the

Group are conducted with professionalism, accountability

and integrity with the objective of safeguarding and

enhancing shareholders’ value and financial performance

of the Group.

The Board is pleased to report on the application of the

Principles of the MCCG 2012 and the extent of compliance

with the Recommendations of the MCCG 2012 as

required under the MCCG 2012, the Main Market Listing

Requirements (“Listing Requirements”) of Bursa Malaysia

Securities Berhad (“Bursa Securities”) and Corporate

Governance Guide (“CG Guide”) issued by Bursa Malaysia

Berhad during the financial year under review.

DIRECTORS

The Board

The Board is responsible for the overall corporate

governance of the Group and is also entrusted with

the responsibility of exercising reasonable care of the

Company as well as Group’s resources in the best interests

of its shareholders and in ensuring the proper conduct of

business.

Board Meetings

Board meetings are scheduled in advance at the beginning

of a calendar year with additional meetings convened

when necessary. Nine (9) Board meetings were held during

the financial year under review with details of meetings’

attendance of each Director are as follows:




Nama / Kehadiran / Peratus (%) /Name Attendance Percentage (%)

Dato’PadukaIsmeeIsmail(Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director) 9/9 100

Dato’MohamedHassanKamil(Pengarah Eksekutif Bukan Bebas / Non-Independent Executive Director) 9/9 100

DatukRozaidaOmar(Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director) 9/9 100

MahadzirAzizan(Pengarah Bukan Eksekutif Bebas Kanan / Senior Independent Non-Executive Director) 8/9 89

Dato’SulaimanMohdYusof(Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director) 9/9 100

JohanAbdullah(Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Director) 9/9 100

ZakariaIsmail(Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director) 7/9 78

Dato’OthmanAbdullah (Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director) 8/9 89

Lembaga Pengarah berpuas hati dengan tahap komitmen

masa yang diberikan oleh para Pengarah ke arah memenuhi

peranan dan tanggungjawab mereka sebagai Pengarah

Takaful Malaysia seperti yang tertera di dalam rekod

kehadiran para Pengarah di dalam mesyuarat Lembaga

Pengarah, sebagaimana yang dinyatakan dalam jadual di

atas.

Semua Pengarah memiliki latar belakang pengalaman

kerja yang luas dalam pelbagai bidang, dan dengan ini

membolehkan mereka membuat pertimbangan yang

sewajarnya dalam melaksanakan tugas mereka.

Piagam Lembaga Pengarah

Lembaga Pengarah berpandu kepada Terma Rujukan

(“Piagam”) yang menggariskan peranan dan tanggungjawab

Lembaga Pengarah. Lembaga Pengarah akan mengkaji

Piagam dari semasa ke semasa bagi memastikan ianya

selari dengan perubahan dalam peraturan-peraturan dan

amalan terbaik dan memastikan ianya berkesan dan relevan

dengan objektif Lembaga Pengarah.

Kod Etika Lembaga Pengarah

Para Pengarah mematuhi kod etika selaras dengan Kod

Etika Pengarah Syarikat yang dibentuk oleh Suruhanjaya

Syarikat Malaysia.

The Board is satisfied with the level of time commitment

given by the Directors towards fulfilling their roles

and responsibilities as Directors of Takaful Malaysia as

evidenced by the attendance record of the Directors at

Board meetings, as set out in the above table.

All Directors have the backing of extensive work experience

in various fields and therefore able to exercise independent

judgement in order to discharge their duties.

Board Charter

The Board is guided by its Terms of Reference (“Charter”)

which set out the roles and responsibilities of the Board.

The Board will regularly review the Charter to keep it up

to date with changes in regulations and best practices

and ensure its effectiveness and relevance to the Board’s

objectives.

Directors’ Code of Ethics

The Directors observe the code of ethics in accordance

with the Company Directors’ Code of Ethics established by

the Companies Commission of Malaysia.


Keseimbangan Lembaga Pengarah dan Kebebasan

Pengarah

Sepanjang tahun kewangan yang dikaji, Lembaga Pengarah

terdiri daripada:

Board Balance and Independence of Directors

During the financial year under review, the Board comprises

the following:



Nama / Komposisi / Peratus (%) /Name Composition Percentage (%)

Pengarah Eksekutif Bukan Bebas / Non-Independent Executive Director 1/8 12.5

Pengarah Bukan Eksekutif Bukan Bebas / Non-Independent Non-Executive Directors 3/8 37.5

Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Directors 4/8 50.0

Komposisi di atas mematuhi Keperluan Penyenaraian yang

mewajibkan satu pertiga (1/3) daripada para Pengarah

Takaful Malaysia terdiri daripada Pengarah Bebas. Salah

satu cadangan MCCG 2012 menyatakan bahawa Lembaga

Pengarah mesti terdiri daripada majoriti Pengarah Bebas jika

Pengerusi Lembaga Pengarah bukan merupakan seorang

Pengarah Bebas. Lembaga Pengarah membincangkan

mengenai perkara ini dan bersetuju bahawa bilangan

Pengarah Bebas akan dikekalkan pada 50% daripada

ahli-ahli Lembaga Pengarah kerana Lembaga Pengarah

merasakan adanya keperluan keseimbangan ahli Lembaga

Pengarah bagi memastikan kepentingan Syarikat dan

semua pihak yang berkepentingan dilindungi.

Lembaga Pengarah telah menerima pakai polisi sembilan

tahun bagi Pengarah Bukan Eksekutif Bebas dalam bulan

Ogos 2011 sebelum penerbitan MCCG 2012. Tempoh untuk

semua empat orang Pengarah Bukan Eksekutif Bebas tidak

melebihi tempoh kumulatif sembilan (9) tahun seperti

yang disyorkan oleh MCCG 2012. Mereka terus memenuhi

definisi bebas seperti yang dinyatakan di dalam Keperluan

Penyenaraian.

Rangka Tindakan Urus Tadbir Korporat 2011 menyatakan

matlamat untuk mencapai 30% penyertaan wanita di dalam

Lembaga Pengarah menjelang tahun 2016 dan kemajuan

ke arah matlamat ini akan dipantau dan dinilai pada tahun

2013. Lembaga Pengarah Takaful Malaysia kini mempunyai

seorang ahli wanita dari lapan ahli (iaitu 12.5%) sejak Mei

2007 manakala Badan Penasihat Syariah juga mempunyai

seorang ahli wanita daripada lima orang ahli (iaitu 20%)

sejak Mac 2008.

Lembaga Pengarah yang mempunyai pelbagai latar

belakang dan kepakaran khusus, secara kolektifnya

membawa bersama mereka pengalaman dan kepakaran

yang luas dalam bidang-bidang seperti kewangan, insurans,

aktuari, perakaunan, kesetiausahaan syarikat, perundangan,

The above composition is in compliance with the Listing

Requirements which require that one third (1/3) of Directors

of Takaful Malaysia to be Independent Directors. One of the

recommendations of the MCCG 2012 states that the Board

must comprise a majority of Independent Directors where

the Chairman of the Board is not an Independent Director.

The Board deliberated on this matter and agreed for the

number of Independent Directors to be maintained at 50%

of the Board members as the Board feel that there is a need

for a balanced Board members to ensure that the interest

of the Company and all the stakeholders are protected.

The Board has adopted a nine-year policy for Independent

Non-Executive Directors in August 2011 i.e. before

the issuance of MCCG 2012. The tenure of all the four

Independent Non-Executive Directors does not exceed

a cumulative term of nine (9) years as recommended by

the MCCG 2012. They continue to fulfill the definition of

independence as set out in the Listing Requirements.

The Corporate Governance Blueprint 2011 stated that the

goal is for women participation on Boards to reach 30% by

2016 and the progress towards this goal will be monitored

and assessed in 2013. Takaful Malaysia’s Board currently

has one women member out of eight members (i.e. 12.5%)

since May 2007 while the Shariah Advisory Body also has

one women member out of five members (i.e. 20%) since

March 2008.

The Board with their different backgrounds and

specialisations, collectively bring with them a wide range

of experience and expertise in areas such as finance,

insurance, actuary, accounting, company secretarial, legal,

management and banking. The profiles of the Directors are

provided on pages 12 to 19 of the Annual Report. There is

a clear division of responsibilities between the Chairman

and the Group Managing Director to ensure that there is a

balance of power and authority.




pengurusan dan perbankan. Profil ahli Lembaga Pengarah

ada dibentangkan di muka surat 12 hingga 19 dalam Laporan

Tahunan ini. Terdapat pembahagian yang jelas antara

tanggungjawab Pengerusi dan Pengarah Urusan Kumpulan

bagi memastikan keseimbangan kuasa dan autoriti.

Peranan Pengerusi dan Pengarah Urusan Kumpulan

ditakrif dengan jelas di mana Pengerusi bertanggungjawab

terhadap pengendalian Lembaga Pengarah dan menerajui

perbincangan di peringkat Lembaga Pengarah sementara

Pengarah Urusan Kumpulan bertanggungjawab terhadap

pengurusan Syarikat dan Kumpulan serta pelaksanaan

dasar dan keputusan yang telah diputuskan oleh Lembaga

Pengarah.

Lembaga Pengarah telah mengenalpasti dan melantik

Mahadzir Azizan sebagai Pengarah Bukan Eksekutif Bebas

Kanan di mana sebarang kemusykilan boleh dirujuk oleh

pemegang saham dan pihak berkepentingan lain.

Lembaga Pengarah menggalakkan urus tadbir korporat

yang baik dalam penglibatan amalan kemampanan

khususnya melalui inisiatif-inisiatif tanggungjawab sosial

korporat / program yang dijalankan oleh Syarikat sepanjang

tahun.

Jawatankuasa Lembaga Pengarah

Dalam memastikan Lembaga Pengarah melaksanakan tugas

mereka dengan lebih berkesan di samping meningkatkan

perniagaan dan kecekapan operasi, Lembaga Pengarah

mengagihkan tanggungjawab tertentu kepada empat (4)

Jawatankuasa Lembaga Pengarah, iaitu:

• Jawatankuasa Audit

• Jawatankuasa Pemilihan

• Jawatankuasa Ganjaran; dan

• Jawatankuasa Risiko Lembaga Pengarah

Setiap Jawatankuasa mempunyai terma rujukan bertulis

yang jelas dan Lembaga Pengarah menerima laporan

bagi setiap persidangan dan pertimbangan Jawatankuasa

tersebut. Pengerusi bagi setiap Jawatankuasa akan

melaporkan kepada Lembaga Pengarah setiap keputusan

dari mesyuarat yang dijalankan dan laporan tersebut akan

dimasukkan ke dalam minit Mesyuarat Lembaga Pengarah.

Keahlian Jawatankuasa adalah bergantung kepada

kemahiran dan pengalaman seseorang Pengarah

serta kebolehan mereka memberi nilai tambah kepada

Jawatankuasa.

The roles of the Chairman and Group Managing Director

are clearly defined with the Chairman being responsible

for running the Board and lead the discussion at the Board

level whilst the Group Managing Director is responsible

for managing the Company and the Group as well as the

implementation of the Board’s policies and decisions.

The Board has identified and appointed Mahadzir Azizan

as a Senior Independent Non-Executive Director to whom

concerns may be conveyed by shareholders and other

stakeholders.

The Board promotes good corporate governance in the

application of sustainability practices particularly through

the corporate social responsibility initiatives/programs

undertaken by the Company throughout the year.

Board Committees

To enable the Board to discharge its duties effectively

whilst enhancing business and operational efficacy, the

Board delegates certain responsibilities to four (4) Board

Committees, namely:

• Audit Committee

• Nomination Committee

• Remuneration Committee; and

• Board Risk Committee

All Committees have clear written terms of reference

and the Board receives reports of their proceedings and

deliberations. The Chairman of the various Committees

will report to the Board the outcome of their meetings and

such reports are incorporated in the minutes of the Board

meeting.

The Committees’ membership are based on Directors’ skills

and experience as well as their ability to add value to the

Committees.


Badan Penasihat Syariah

Badan Penasihat Syariah telah diberi kepercayaan oleh

Lembaga Pengarah bagi memastikan operasi dan produk

yang ditawarkan oleh Kumpulan adalah berlandaskan

Syariah. Kesemua perkara yang memerlukan pandangan

dan keputusan Badan Penasihat Syariah akan dibentangkan

di dalam mesyuarat Badan Penasihat Syariah di mana ianya

juga dihadiri oleh pihak Pengurusan dan wakil dari Bahagian

Syariah. Kemudian, perkara tersebut akan dibawa kepada

Lembaga Pengarah untuk memaklumkan keputusan yang

telah dibuat.

Badan Penasihat Syariah terdiri daripada lima (5) orang

ahli di mana kesemuanya mempunyai pengalaman dan

kepakaran yang diperlukan di dalam bidang masing-

masing. Dr. Ahmad Shahbari @ Sobri Salamon merupakan

Pengerusi Badan Penasihat Syariah. Enam (6) mesyuarat

Badan Penasihat Syariah telah diadakan sepanjang tahun

kewangan yang dikaji dengan butiran kehadiran setiap ahli

seperti berikut:

Shariah Advisory Body

The Shariah Advisory Body is entrusted by the Board to

ensure that the Group’s operations and products offered

are in accordance with the Shariah. All matters which

require the Shariah Advisory Body’s opinion and decision

are deliberated at Shariah Advisory Body meetings with

the attendance of the Management and representatives

from the Shariah Division. Thereon, the said matters are

brought to the attention of the Board for an informed

decision making.

The Shariah Advisory Body consists of five (5) members, all

of whom have the necessary experiences and expertise in

their respective fields. The Chairman of the Shariah Advisory

Body is Dr. Ahmad Shahbari @ Sobri Salamon. The Shariah

Advisory Body meets six (6) times during the financial year

under review with details of meetings’ attendance of each

member are as follows:

Polisi Pemberitahuan Maklumat dan Polisi Penipuan &

Integriti

Syarikat telah mewujudkan Polisi Pemberitahuan Maklumat

lanjutan daripada Akta Perlindungan Pemberi Maklumat,

2010 dengan objektif seperti berikut:-

1) Untuk membolehkan pekerja-pekerja menyuarakan

apa-apa kemusykilan mengenai integriti dan salah

laku disamping membolehkan Lembaga Pengarah

diberitahu pada peringkat awal mana-mana salah laku

atau perbuatan yang tidak sopan;

2) Untuk melindungi pekerja-pekerja daripada hukuman

atau perlakuan yang tidak adil akibat menyuarakan

kemusykilan dengan cara yang betul selaras dengan

Polisi Pemberitahuan Maklumat; dan

3) Untuk membentuk budaya keterbukaan, akauntabiliti

dan integriti dalam Syarikat.

Whistle Blowing Policy and Fraud & Integrity Policy

The Company has established the Whistle Blowing Policy

in response to the Whistleblower Protection Act, 2010 with

the following objectives:-

1) To enable the employees to raise any concerns of

integrity and misconduct as well as to enable the Board

to be informed at an early stage of any misconduct or

improprieties;

2) To protect the employees from punishment or unfair

treatment for disclosing concerns in good faith in

accordance with the Whistle Blowing Policy; and

3) To develop a culture of openness, accountability and

integrity within the Company.

In addition, the Company has also established the Fraud

& Integrity Policy to facilitate the development of controls


Dr.AhmadShahbari@SobriSalamon 6/6 100

Dato’MohdBakirHj.Mansor 6/6 100

Dr.AidaOthman 6/6 100

ProfessorDr.MuhamadRahimiOsman 6/6 100

Dato’WanMohamadDato’SheikhAbdulAziz 4/6 67




Di samping itu, Syarikat juga telah mewujudkan Polisi

Penipuan & Integriti untuk memudahkan perkembangan

kawalan yang akan membantu dalam pengesanan dan

pencegahan penipuan terhadap Syarikat secara dalaman

dan luaran. Objektif Polisi Penipuan & Integriti adalah

seperti berikut:-

1) Bagi memastikan tindakan segera dan konsisten serta

memastikan keberkesanan dan keberkaitan kawalan

dalaman dalam mengurangkan risiko penipuan;

2) Untuk melindungi Syarikat dari kerugian kewangan,

kerosakan reputasi serta menanam keyakinan peserta-

peserta dan pihak berkepentingan lain; dan

3) Untuk membolehkan Pengurusan memberi tumpuan

kepada pencapaian strategi perniagaan dan sasaran.

Kedua-dua polisi di atas boleh diperolehi di portal Syarikat.

Sumber Maklumat kepada Lembaga Pengarah

Lembaga Pengarah mempunyai akses penuh dan

secukupnya kepada maklumat berkenaan kertas

Lembaga Pengarah yang diedarkan sebelum mesyuarat

agar Pengarah boleh mendapatkan penjelasan lanjut,

apabila diperlukan bagi mendapatkan penerangan yang

sewajarnya sebelum mesyuarat. Kertas Lembaga Pengarah

merangkumi minit mesyuarat Lembaga Pengarah yang

lalu, minit mesyuarat semua Jawatankuasa Lembaga

Pengarah dan laporan yang berkaitan isu-isu mesyuarat

yang meliputi kewangan, pelaburan, teknologi maklumat,

operasi, sumber manusia dan perkara berkaitan dengan

pematuhan peraturan. Pengarah Urusan Kumpulan akan

memaklumkan kepada Lembaga Pengarah tepat pada

masanya, berhubung semua isu penting yang boleh

mempengaruhi prestasi Kumpulan dan pembangunan

utama yang berlaku dalam Kumpulan.

Pengurusan Kanan dijemput untuk menghadiri

mesyuarat Lembaga Pengarah apabila diperlukan bagi

membentangkan dan menerangkan perkara-perkara /

laporan berkaitan dengan bidang tanggungjawab mereka

kepada Lembaga Pengarah.

Semua ahli Lembaga Pengarah mempunyai akses yang

tidak terhad kepada maklumat yang tepat dan pada

masa yang ditetapkan serta khidmat nasihat Setiausaha

Syarikat yang bertanggungjawab untuk memastikan

supaya prosedur mesyuarat Lembaga Pengarah dituruti

dan semua syarat serta peraturan yang diterima pakai

dipatuhi. Para Pengarah juga boleh mendapatkan nasihat

badan profesional bebas dalam menjalankan tugas mereka,

di bawah tanggungan Takaful Malaysia.

that will aid in the detection and prevention of fraud against

the Company internally and externally. The objectives of

the Fraud & Integrity Policy are as follows:-

1) To ensure prompt and consistent action as well as

to ensure the effectiveness and relevance of internal

control in mitigating fraud risk;

2) To safeguard the Company from financial losses,

reputation damage as well as to instill confidence of

participants and stakeholders; and

3) To enable Management to focus on achieving business

strategies and target.

Both of the above policies are available on the Company’s

portal.

Supply of Information to the Board

The Board has full and timely access to information with

Board papers distributed in advance of meetings to enable

the Directors to obtain further explanation, where necessary,

in order to be properly briefed before the meetings. The

Board papers include the minutes of previous Board

meeting, minutes of meetings of all Committees of the

Board and reports relevant to the issues of the meetings

covering areas such as financial, investment, information

technology, operational, human resource and regulatory

compliance matters. The Group Managing Director keeps

the Board informed, on timely basis, of all material matters

affecting the Group’s performance and major developments

within the Group.

The Senior Management are invited to attend the Board

meetings to present and brief the Board on matters /

reports relating to their areas of responsibility as and when

required.

All the Board members have unrestricted access to timely

and accurate information and access to the advice and

services of the Company Secretary, who is responsible for

ensuring that Board meeting’s procedures are followed

and that all applicable rules and regulations are complied

with. The Directors can also seek independent professional

advice in furtherance of their duties, at Takaful Malaysia’s

expense.




Pelantikan sebagai ahli Lembaga Pengarah

Pelantikan ahli Lembaga Pengarah yang baru dipertimbang

dan dinilai oleh Jawatankuasa Pemilihan dan Jawatankuasa

tersebut akan mengesyorkan pelantikan tersebut kepada

Lembaga Pengarah untuk diluluskan. Selaras dengan

Akta Perkhidmatan Kewangan Islam 2013 (sebelumnya

Akta Takaful 1984) dan keperluan Bank Negara Malaysia

(“BNM”), pelantikan Pengarah adalah tertakluk kepada

kelulusan BNM. Setiausaha Syarikat akan memastikan

supaya semua pelantikan dilakukan dengan cara yang betul

di mana semua maklumat yang diperlukan diperolehi serta

semua syarat perundangan dan peraturan dipenuhi.

Jawatankuasa Pemilihan

Jawatankuasa Pemilihan terdiri daripada lima (5) Pengarah

Bukan Eksekutif di mana tiga (3) daripada mereka adalah

Pengarah Bebas. Pengerusi Jawatankuasa ialah Mahadzir

Azizan, seorang Pengarah Bukan Eksekutif Bebas Kanan

selaras dengan cadangan MCCG 2012. Jawatankuasa

Pemilihan telah bermesyuarat sebanyak dua (2) kali

sepanjang tahun kewangan yang dikaji dengan butiran

kehadiran setiap ahli seperti berikut:

Appointment to the Board

The appointment of new Board members is considered and

evaluated by the Nomination Committee and the Committee

would recommend the appointment to the Board for

approval. In line with the Islamic Financial Services Act 2013

(previously Takaful Act 1984) and the requirement of Bank

Negara Malaysia (“BNM”), the appointment of Directors is

subject to the approval from BNM. The Company Secretary

will ensure that all the appointments are properly made, all

necessary information are obtained, as well as all legal and

regulatory requirements are met.

Nomination Committee

The Nomination Committee consists of five (5) Non-

Executive Directors, three (3) of whom are Independent

Directors. The Chairman of the Committee is Mahadzir

Azizan, a Senior Independent Non-Executive Director,

in line with the recommendation of the MCCG 2012. The

Nomination Committee met two (2) times during the

financial year under review with details of meetings’

attendance of each member as follows:

Jawatankuasa Pemilihan telah diberikan mandat oleh

Lembaga Pengarah dan terma rujukannya untuk

membentang kepada Pengarah cadangan pemilihan

ahli Lembaga Pengarah, Pengarah Urusan Kumpulan /

Ketua Pegawai Eksekutif dan Pengurus Besar, dan

sentiasa mengkaji syarat-syarat pelantikan Pengarah,

Pengarah Urusan Kumpulan / Ketua Pegawai Eksekutif

dan Pengurus Besar. Jawatankuasa Pemilihan juga diberi

mandat untuk menilai keberkesanan Lembaga Pengarah,

Jawatankuasanya dan sumbangan setiap Pengarah.

Jawatankuasa Pemilihan juga merangka pelan peralihan

jawatan bagi Pengurusan Kanan Takaful Malaysia. Penilaian

keberkesanan Lembaga Pengarah dan Jawatankuasanya

The Nomination Committee is empowered by the Board

and its terms of reference are to bring to the Board

recommendations as to the appointment of new Directors,

Group Managing Director / Chief Executive Officer and

General Managers, and keeps under review the terms of

appointment of Directors, Group Managing Director / Chief

Executive Officer and General Managers. The Nomination

Committee is also empowered to assess the effectiveness

of the Board, its Committees and the contribution of

each individual Director. The Nomination Committee also

discussed the succession plan of the Senior Management

of Takaful Malaysia. An assessment of the effectiveness of

the Board as a whole and its Committees i.e. Nomination


Mahadzir Azizan 2/2 100

Johan Abdullah 2/2 100

Datuk Rozaida Omar 2/2 100

Dato’ Sulaiman Mohd yusof 2/2 100

Zakaria Ismail 2/2 100




iaitu Jawatankuasa Pemilihan, Jawatankuasa Ganjaran,

Jawatankuasa Audit dan Jawatankuasa Risiko Lembaga

Pengarah di samping sumbangan setiap Pengarah telah

dijalankan pada tahun ini.

Latihan Pengarah

Semua ahli Lembaga Pengarah telah menghadiri Program

Latihan Akreditasi Mandatori (“MAP”). Mereka akan terus

menghadiri lain-lain program latihan, kursus dan seminar

yang relevan untuk mempertingkatkan kemahiran dan

pengetahuan mereka dalam menjalankan tugas mereka

sebagai Pengarah.

Sepanjang tahun ini, para Pengarah telah menghadiri

pelbagai kursus latihan yang berkaitan termasuk:-

- MINDA Directors Forum 2013: “Board Rising to the

Challenges of Corporate Entrepreneurship”

- MINDA Building High Performance Directors (BHPD)

2013: “Enhancing Board Effectiveness”

- MINDA Tea Talk with Prof. Dr. Randel S. Carlock

- “Leading Board Challenges: Innovative Ideas for

Breakthrough Performance”

- FIDE Elective Program: Risk Management in Takaful

- FIDE Elective Program: Human Capital Management in

the Boardroom

- FIDE Programme and FIDE Core Programme Module A

- FIDE Forum: “Managing Talent at Board and

Management” by Professor Dave Ulrich

- FIDE Forum Breakfast Talk cum Luncheon for Members

- “Towers Watson 2012 Global Insurance ERM Survey

Results”

- Towers Watson’s Ideas Exchange (iX) Conference:

“Just Can’t Get Enough”

- Bursa Malaysia’s Advocacy Sessions on Corporate

Disclosure for Directors

- Special Dialogue and Presentation Session on Asean

Corporate Governance Scorecard 2013

Takaful Malaysia juga terus menyediakan Pekeliling BNM,

Keperluan Penyenaraian yang dikemaskini dan peraturan-

peraturan dan panduan-panduan baru dari pihak berkuasa

lain yang berkaitan untuk membantu para Pengarah dalam

mendapatkan maklumat mengenai perkembangan terkini.

Committee, Remuneration Committee, Audit Committee

and Board Risk Committee as well as the contribution of

each individual director was carried out during the year.

Directors’ Training

All Directors have attended the Mandatory Accreditation

Programme (“MAP”). The Directors will continue to attend

other relevant training programmes, courses and seminars

to enhance their skills and knowledge in discharging their

duties as Directors.

During the year, the Directors attended relevant training

courses including the following:-

- MINDA Directors Forum 2013: “Board Rising to the

Challenges of Corporate Entrepreneurship”

- MINDA Building High Performance Directors (BHPD)

2013: “Enhancing Board Effectiveness”

- MINDA Tea Talk with Prof. Dr. Randel S. Carlock

- “Leading Board Challenges: Innovative Ideas for

Breakthrough Performance”

- FIDE Elective Program: Risk Management in Takaful

- FIDE Elective Program: Human Capital Management in

the Boardroom

- FIDE Programme and FIDE Core Programme Module A

- FIDE Forum: “Managing Talent at Board and

Management” by Professor Dave Ulrich

- FIDE Forum Breakfast Talk cum Luncheon for Members

- “Towers Watson 2012 Global Insurance ERM Survey

Results”

- Towers Watson’s Ideas Exchange (iX) Conference:

“Just Can’t Get Enough”

- Bursa Malaysia’s Advocacy Sessions on Corporate

Disclosure for Directors

- Special Dialogue and Presentation Session on Asean

Corporate Governance Scorecard 2013

Takaful Malaysia also continued to provide BNM’s Circulars,

updated Listing Requirements and new regulations and

guidelines from other relevant regulatory authorities to

assist the Directors in keeping abreast with the latest

development.




Pemilihan Semula

Tataurusan Pertubuhan Syarikat memperuntukkan agar

semua Pengarah termasuk Pengarah Urusan Kumpulan /

Ketua Pegawai Eksekutif untuk menawarkan diri mereka

bagi pemilihan semula sekurang-kurangnya setiap tiga (3)

tahun sekali selaras dengan Keperluan Penyenaraian.

Bagi membantu para pemegang saham membuat

keputusan, maklumat yang mencukupi seperti profil

peribadi, kehadiran mesyuarat dan pegangan saham

dalam Syarikat bagi setiap Pengarah yang bersedia untuk

pemilihan semula disediakan dalam Laporan Tahunan.

GANJARAN PENGARAH

Peringkat dan Kandungan Ganjaran

Jawatankuasa Ganjaran bertanggungjawab mengesyorkan

rangka kerja ganjaran bagi para Pengarah termasuk pakej

ganjaran bagi Pengarah Eksekutif dan Pengurus Besar

kepada Lembaga Pengarah bagi memastikan Takaful

Malaysia mampu menarik minat, memberi motivasi dan

mengekalkan ahli Lembaga Pengarah dan Pengurusan

Kanan yang diperlukan untuk mentadbir dengan jayanya.

Ganjaran para Pengarah adalah sejajar dengan amalan

keseluruhan Kumpulan mengenai ganjaran dan imbuhan.

Pengarah Eksekutif tidak terlibat dalam apa juga cara dalam

menentukan ganjarannya sendiri. Lembaga Pengarah

secara keseluruhannya menentukan ganjaran bagi

Pengarah Bukan Eksekutif. yuran para Pengarah diluluskan

oleh para pemegang saham di Mesyuarat Agung Tahunan.

Jawatankuasa Ganjaran

Jawatankuasa Ganjaran terdiri daripada empat (4) orang

Pengarah Bukan Eksekutif, di mana dua (2) daripada

mereka adalah Pengarah Bebas. Pengerusi Jawatankuasa

ialah Zakaria Ismail, seorang Pengarah Bukan Eksekutif

Bebas. Jawatankuasa Ganjaran telah bermesyuarat

sebanyak enam (6) kali sepanjang tahun kewangan yang

dikaji dengan butiran kehadiran setiap ahli seperti berikut:


Zakaria Ismail 6/6 100

Johan Abdullah 6/6 100

Mahadzir Azizan 5/6 83

Datuk Rozaida Omar t/b t/b(Dilantik pada 14 Februari 2014 / Appointed on 14 February 2014) n/a n/a

t/b - tidak berkenaan kerana Datuk Rozaida Omar dilantik sebagai ahli selepas tahun kewangan berakhir 31 Disember 2013.n/a - not applicable as Datuk Rozaida Omar was appointed as a member after the financial year ended 31 December 2013.

Re-election

The Articles of Association provide for all Directors including

the Group Managing Director / Chief Executive Officer to

submit themselves for re-election at least every three (3)

years in compliance with the Listing Requirements.

To assist shareholders in their decision, sufficient

information, such as personal profile, meetings attendance

and shareholding in the Company of each director standing

for re-election are furnished in the Annual Report.

DIRECTORS’ REMUNERATION

Level and Make-up of Remuneration

The Remuneration Committee is responsible in

recommending the remuneration framework for the

Directors as well as the remuneration package of Executive

Director and General Managers to the Board so as to

ensure that Takaful Malaysia attracts, motivates and retains

the Directors and Senior Management needed to run it

successfully. The remuneration of Directors is in line with

the Group’s overall practice on compensation and benefits.

The Executive Director does not participate in any way

in determining his individual remuneration. The Board as

a whole determines the remuneration of Non-Executive

Directors. Directors’ fees are approved by the shareholders

at the Annual General Meeting.

Remuneration Committee

The Remuneration Committee consists of four (4) Non-

Executive Directors, two (2) of whom are Independent

Directors. The Chairman of the Committee is Zakaria Ismail,

an Independent Non-Executive Director. The Remuneration

Committee met six (6) times during the financial year

under review with details of meetings’ attendance of each

member are as follows:




Pendedahan

Ringkasan maklumat mengenai ganjaran para Pengarah

bagi tahun kewangan berakhir 31 Disember 2013 adalah

seperti berikut:

Disclosure

The details of the remuneration for the Directors for the

financial year ended 31 December 2013 are as follows:

PEMEGANG SAHAM

Dialog antara Syarikat dan para Pelabur

Takaful Malaysia sedar akan kepentingan untuk sentiasa

memaklumkan kepada para pemegang saham berkenaan

semua perkembangan utama Takaful Malaysia dari semasa

ke semasa. Pengerusi dan Pengarah Urusan Kumpulan

mengadakan perbincangan dengan pemegang saham

sekurang-kurangnya sekali (1) setahun semasa Mesyuarat

Agung Tahunan. Selain itu, pelbagai pendedahan dan

pengumuman dibuat kepada Bursa Securities termasuk

keputusan suku tahunan, laporan setengah tahunan

dan keputusan tahunan bagi memudahkan penyebaran

maklumat kepada pemegang saham. Tambahan lagi,

semua pengumuman-pengumuman ini dan maklumat-

maklumat lain mengenai Syarikat boleh diperolehi di laman

web Takaful Malaysia, iaitu www.takaful-malaysia.com.my.

SHAREHOLDERS

Dialogue between the Company and Investors

Takaful Malaysia recognizes the importance to keep the

shareholders well-informed of all major developments of

Takaful Malaysia on a timely basis. The Chairman and Group

Managing Director hold discussions with shareholders at

least once (1) a year during the Annual General Meeting.

Additionally, various disclosures and announcements made

to Bursa Securities including quarterly, semi-annual returns

and annual results facilitate the dissemination of information

to the shareholders. In addition, all these announcements

and other information about the Company is available on

Takaful Malaysia’s website, www.takaful-malaysia.com.my.

Pengarah Bukan Eksekutif / Pengarah Eksekutif / Non-Executive Jumlah / Executive Director Directors Total (RM’000) (RM’000) (RM’000)

yuran / Fees 0 696 696

Gaji dan lain-lain emolumen / Salaries and other emoluments 5,049 334 5,383

Manfaat seumpamanya / Benefits-in-kind 91 192 283

Jumlah / Total 5,140 1,222 6,362

Ganjaran Pengarah / Jumlah Pengarah /

Directors’ Remuneration Number of Directors

Pengarah Eksekutif / Pengarah Bukan Eksekutif /

Executive Director Non-Executive Directors

Dibawah / Below than RM50,000 - -

RM50,001 – RM100,000 - 4

RM100,001 – RM150,000 - 3

RM150,001 – RM200,000 - -

Melebihi / More than RM200,001 1 -

Jumlah / Total 1 7




Syarikat berpandu kepada Keperluan Penyenaraian

mengenai Dasar Pendedahan Korporat.

Mesyuarat Agung Tahunan

Mesyuarat Agung Tahunan (“AGM”) adalah forum utama

bagi dialog dengan pemegang saham. Selain dari agenda

biasa untuk AGM , Lembaga Pengarah akan membentangkan

laporan prestasi dan pencapaian perniagaan seperti yang

dinyatakan dalam Laporan Tahunan dan memberi peluang

kepada pemegang saham untuk mengemukakan soalan

mengenai aktiviti perniagaan Kumpulan. Pengarah Urusan

Kumpulan juga berkongsi dengan para pemegang saham

Syarikat mengenai jawapan kepada soalan-soalan yang

dikemukakan terlebih dahulu sebelum AGM oleh Badan

Pengawas Pemegang Saham Minoriti Berhad (“MSWG”).

Notis Mesyuarat Agung Tahunan telah dihantar kepada

para pemegang saham lebih awal sedikit daripada

keperluan 21 hari di bawah Akta Syarikat, 1965 dan

Keperluan Penyenaraian. Bagi pemilihan semula para

Pengarah, Lembaga Pengarah akan memastikan maklumat

sepenuhnya dimaklumkan menerusi notis mesyuarat

berhubung para Pengarah yang akan bersara dan mana-

mana Pengarah yang menawarkan diri untuk berkhidmat

sekiranya dilantik semula.

Setiap perkara urusan khas yang terkandung dalam notis

mesyuarat akan disertakan dengan penyata penerangan

bagi resolusi yang dicadangkan untuk memudahkan

pemahaman sepenuhnya dan penilaian terhadap isu

berkaitan.

Pada Mesyuarat Agung Tahunan Syarikat ke-28 yang

diadakan pada 29 April 2013, tiada resolusi substantif yang

telah dikemukakan untuk kelulusan pemegang saham,

selain daripada resolusi-resolusi yang berkaitan untuk

menerima pakai penyata kewangan yang telah diaudit

bagi tahun berakhir 31 Disember 2012, pelantikan semula /

pemilihan semula Pengarah Bukan Eksekutif yang bersara,

pembayaran yuran Pengarah-pengarah dan ahli-ahli Badan

Penasihat Syariah, pelantikan semula juruaudit luar dan

Mandat Pemegang-pemegang Saham bagi Urusniaga-

urusniaga yang Berulang dengan Pihak Berkaitan. Oleh

itu, resolusi yang dikemukakan untuk kelulusan pemegang

saham pada AGM yang ke-28 telah diundi dengan cara

mengangkat tangan.

The Company is guided by the Listing Requirements

regarding the Corporate Disclosure Policy.

The Annual General Meeting

The Annual General Meeting (“AGM”) is the principal forum

for dialogues with shareholders. Besides the normal agenda

for the AGM, the Group Managing Director presents the

progress and performance of the business as contained

in the Annual Report and provides opportunities for

shareholders to raise questions pertaining to the business

activities of the Group. The Group Managing Director also

shared with the shareholders the Company’s responses to

questions submitted in advance of the AGM by the Minority

Shareholder Watchdog Group (“MSWG”).

The Notice of AGM was dispatched to shareholders slightly

earlier than the 21 days requirement under the Companies

Act 1965 and Listing Requirements. For re-election of

Directors, the Board will ensure that full information is

disclosed through the notice of meeting regarding directors

who are retiring and who are willing to serve if re-elected.

Each item of special business included in the notice of the

meeting will be accompanied by an explanatory statement

for the proposed resolution to facilitate full understanding

and evaluation of issues involved.

At the 28th AGM of the Company held on 29 April 2013,

no substantive resolutions were put forth for shareholders’

approval, other than resolutions pertaining to the adoption

of audited financial statements for the year ended 31

December 2012, re-appointment/re-election of retiring

Non-Executive Directors, payment of Directors’ and Shariah

Advisory Body members’ fees, re-appointment of external

auditors and Shareholders’ Mandate for Recurrent Related

Party Transactions. As such, the resolutions put forth for

shareholders’ approval at the 28th AGM were voted on by

a show of hands.




AKAUNTABILITI DAN AUDIT

Laporan Kewangan

Lembaga Pengarah perlu memastikan yang penyata

kewangan tahunan dan pengumuman suku tahunan

kepada pemegang saham disediakan selaras dengan

piawaian perakaunan yang diluluskan dan membentangkan

penilaian yang seimbang dan boleh difahami mengenai

kedudukan dan prospek Kumpulan. Jawatankuasa Audit

membantu Lembaga Pengarah memastikan ketepatan

dan kelengkapan maklumat dengan mengkaji dan

mencadangkan mengguna pakai maklumat bagi tujuan

pendedahan.

Penyata Tanggungjawab Para Pengarah Berkenaan

Penyata Kewangan

Menurut Akta Syarikat, 1965, Lembaga Pengarah perlu

menyediakan penyata kewangan bagi setiap tahun

kewangan yang memberi gambaran yang benar dan

saksama mengenai keadaan urusan hal-ehwal Syarikat dan

Kumpulan sehingga akhir tahun kewangan serta penyata

hasil dan aliran tunai Syarikat dan Kumpulan untuk tahun

kewangan.

Para Pengarah memberi pertimbangan bahawa, dalam

menyediakan penyata kewangan bagi tahun berakhir

31 Disember 2013, Kumpulan telah menggunakan dasar

perakaunan yang sesuai, digunakan secara konsisten dan

disokong oleh pertimbangan dan anggaran yang wajar dan

berhemat. Para Pengarah juga telah mempertimbangkan

bahawa kesemua piawaian perakaunan yang berkaitan

dipatuhi dan mengesahkan bahawa penyata kewangan

disediakan mengikut dasar perniagaan berterusan.

Para Pengarah bertanggungjawab memastikan supaya

Syarikat menyediakan rekod perakaunan yang secukupnya

yang menunjukkan ketepatan yang munasabah mengenai

kedudukan kewangan Syarikat bagi membolehkan mereka

memastikan agar penyata kewangan tersebut mematuhi

keperluan Akta Syarikat, 1965.

Para Pengarah mempunyai tanggungjawab secara

am untuk mengambil langkah yang munasabah dalam

memastikan perlindungan aset Syarikat dan Kumpulan

terpelihara dan mengelakkan serta mengesan sebarang

bentuk penipuan dan kesalahan undang-undang.

ACCOUNTABILITY AND AUDIT

Financial Reporting

The Board ensures that the annual financial statements and

quarterly announcements to shareholders are prepared

in accordance with approved accounting standards and

present a balance and understandable assessment of the

Group’s position and prospects. The Audit Committee

assists the Board in ensuring accuracy and adequacy of

information by reviewing and recommending for adoption

information for disclosure.

Statement of Directors’ Responsibilities in Relation to

Financial Statements

The Directors are required under the Companies Act, 1965,

to prepare financial statements for each financial year

which give a true and fair view of the state of affairs of

the Company and the Group as at the end of the financial

year and of the income statement and cash flows for the

Company and the Group for the financial year.

The Directors consider that, in preparing the financial

statements for the year ended 31 December 2013,

the Group has used appropriate accounting policies,

consistently applied and supported by reasonable and

prudent judgements and estimates. The Directors have also

considered that all applicable accounting standards have

been followed and confirm that the financial statements

have been prepared on the going concern basis.

The Directors are responsible for ensuring that the Company

maintains adequate accounting records which disclose with

reasonable accuracy the financial position of the Company

to enable them to ensure that the financial statements

comply with the requirements of the Companies Act, 1965.

The Directors generally have the duty to take such steps

as are reasonably available to them to safeguard the assets

of the Company and the Group, and to prevent and detect

fraud and other irregularities.




Kawalan Dalaman dan Pengurusan Risiko

Lembaga Pengarah mengiktiraf tanggungjawabnya dan

komited untuk mengekalkan pelaksanaan sistem kawalan

dalaman dan amalan pengurusan risiko yang berwibawa.

Walau bagaimanapun, sistem tersebut hanya dapat

memberikan jaminan berpatutan dan bukannya mutlak

daripada sebarang salah nyata atau kerugian ketara.

Penyata Pengurusan Risiko dan Kawalan Dalaman yang

dibentangkan di muka surat 51 hingga 55 dalam Laporan

Tahunan ini memberikan tinjauan menyeluruh mengenai

pengurusan risiko dan kawalan dalaman Kumpulan.

Hubungan dengan Juruaudit

Peranan Jawatankuasa Audit dinyatakan di muka surat

27 hingga 35. Melalui Jawatankuasa Audit Lembaga

Pengarah, Syarikat telah mewujudkan hubungan yang telus

dan sesuai dengan juruaudit Syarikat, sama ada dalaman

mahupun luaran. Jika perlu, juruaudit luar akan dijemput

untuk menghadiri mesyuarat Jawatankuasa.

Penyata ini dibuat selaras dengan resolusi Lembaga

Pengarah bertarikh 14 Februari 2014.

Internal Control and Risk Management

The Board acknowledges its responsibility and is committed

in maintaining a sound system of internal control and risk

management practice. However, such system can only

provide reasonable but not absolute assurance against

material misstatements or losses.

The Statement on Risk Management and Internal Control

furnished on pages 51 to 55 in the Annual Report provides

an overview of the state of risk management and internal

control within the Group.

Relationships with the Auditors

The role of the Audit Committee is as stated on pages

27 to 35. Through the Audit Committee of the Board, the

Company has established transparent and appropriate

relationship with the Company’s auditors, both internal and

external. If required, the external auditors are invited to

attend meetings of the Committee.

This statement is made in accordance with the resolution of

the Board of Directors dated 14 February 2014.






1. UTILISATION OF PROCEEDS

There were no proceeds raised / utilised by Takaful Malaysia from corporate proposals during the financial year.

2. SHARE BUYBACKS

There were no share buybacks by Takaful Malaysia during the financial year.

3. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES

No options, warrants or convertible securities were issued by Takaful Malaysia during the financial year.

4. AMERICAN DEPOSITORY RECEIPT (ADR) OR GLOBAL DEPOSITORY RECEIPT (GDR) PROGRAMME

Takaful Malaysia did not sponsor any ADR or GDR programme during the financial year.

5. IMPOSITIONS OF SANCTIONS / PENALTIES

There were no sanctions and / or penalties imposed on Takaful Malaysia and its subsidiaries, Directors or Management by relevant regulatory bodies during the financial year.

6. NON-AUDIT FEES

There were RM20,000 non-audit fees paid to external auditors during the financial year.

7. VARIATION IN RESULTS

There was no significant variation (differing by 10% or more) between the results for the financial year and the unaudited results previously announced. Takaful Malaysia did not release any profit estimate, forecast or projections for the financial year.

8. PROFIT GUARANTEE

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

9. MATERIAL CONTRACTS INVOLVING DIRECTORS AND MAJOR SHAREHOLDERS

There were no material contracts entered into by Takaful Malaysia and its subsidiary companies involving Directors and major Shareholders’ interest, either still subsisting at the end of the financial year or entered into since the end of the previous financial year except for related parties transactions disclosed in Note 42 to the financial statements.

1. PENGGUNAAN DANA

Tiada dana yang diterbitkan / digunakan oleh Takaful Malaysia daripada cadangan korporat sepanjang tahun kewangan.

2 PEMBELIAN BALIK SAHAM

Tiada sebarang pembelian balik saham dilakukan oleh Takaful Malaysia sepanjang tahun kewangan.

3. OPSYEN, WARAN ATAU SEKURITI BOLEH TUKAR

Tiada sebarang opsyen, waran atau sekuriti boleh tukar yang diterbitkan oleh Takaful Malaysia sepanjang tahun kewangan.

4. PROGRAM AMERICAN DEPOSITORY RECEIPT (ADR) ATAU GLOBAL DEPOSITORY RECEIPT (GDR)

Takaful Malaysia tidak menaja sebarang program ADR atau GDR sepanjang tahun kewangan.

5. PENGENAAN SEKATAN / PENALTI

Tiada sekatan dan / atau penalti yang dikenakan ke atas Takaful Malaysia dan subsidiari, para Pengarah atau Pengurusannya oleh pihak berkuasa berkaitan sepanjang tahun kewangan.

6. YURAN BUKAN AUDIT

yuran bukan audit yang dibayar kepada juruaudit luar pada tahun kewangan berjumlah RM20,000.

7. VARIASI KEPUTUSAN

Tiada variasi ketara (berbeza sebanyak 10% atau lebih) antara keputusan untuk tahun kewangan dan keputusan tidak diaudit yang diumumkan sebelumnya. Takaful Malaysia tidak mengeluarkan sebarang anggaran, ramalan atau unjuran keuntungan bagi tahun kewangan.

8. JAMINAN KEUNTUNGAN

Tiada jaminan keuntungan diberi oleh Takaful Malaysia sepanjang tahun kewangan.

9. KONTRAK PENTING MELIBATKAN PENGARAH DAN PEMEGANG SAHAM UTAMA

Tiada kontrak penting yang dimeterai oleh Takaful Malaysia dan syarikat-syarikat subsidiarinya yang membabitkan kepentingan para Pengarah dan Pemegang Saham utama, sama ada yang masih wujud pada akhir tahun kewangan atau yang dimeterai sejak akhir tahun kewangan sebelumnya kecuali untuk urus niaga pihak berkaitan yang dinyatakan dalam Nota 42 kepada penyata kewangan.




10. URUSNIAGA PIHAK BERKAITAN YANG BERULANG / RECURRENT RELATED PARTY TRANSACTIONS

Bentuk

Urusniaga

Pihak

Berkaitan

yang

Berurusniaga

Pihak Berkaitan, kepentingan mereka dan bentuk

hubungan dengan Kumpulan Takaful Malaysia

Nilai Urusniaga Sebenar dari

1 Januari 2013 hingga

31 Disember 2013

(RM’000)

Sewa

bangunan

pejabat yang

dibayar

kepada

Takaful

Malaysia

oleh Bank

Islam

Malaysia

Berhad

(BIMB)

BIMB BIMB adalah subsidiari 100% milik BHB. BHB adalah

pemegang saham utama Takaful Malaysia yang

memegang kepentingan ekuiti sebanyak 60.50%

dalam Syarikat pada 31 Disember 2013.

Dato’ Paduka Ismee Ismail dan Johan Abdullah adalah

Pengarah BHB dan BIMB dan juga Pengarah Takaful

Malaysia, yang dilantik oleh BHB. Dato’ Paduka Ismee

Ismail dan Johan Abdullah tidak mempunyai sebarang

kepentingan langsung atau tidak langsung dalam BHB,

BIMB dan Takaful Malaysia.

Datuk Rozaida Omar adalah Pengarah BHB dan juga

Pengarah Takaful Malaysia, yang dilantik oleh BHB.

Dato’ Mohamed Hassan Kamil adalah Pengarah Takaful

Malaysia, yang dilantik oleh BHB. Datuk Rozaida Omar

dan Dato’ Mohamed Hassan Kamil tidak mempunyai

sebarang kepentingan langsung atau tidak langsung

dalam BHB dan Takaful Malaysia.

2,567

Nature of

Transactions

Related

Parties

Transacted

with

Related Parties, their interests and nature of

relationships with the Takaful Malaysia Group

Actual Transaction Value

from 1 January 2013 to

31 December 2013

(RM’000)

Rental of

office

premises

payable

to Takaful

Malaysia by

Bank

Islam Malaysia

Berhad

(BIMB)

BIMB BIMB is a 100% owned subsidiary of BHB. BHB is a

major shareholder of Takaful Malaysia holding an equity

interest of 60.50% in the Company as at 31 December

2013.

Dato’ Paduka Ismee Ismail and Johan Abdullah are

Directors in BHB and BIMB and are also Directors in

Takaful Malaysia, nominated by BHB. Dato’ Paduka

Ismee Ismail and Johan Abdullah do not have any direct

or indirect interest in BHB, BIMB and Takaful Malaysia.

Datuk Rozaida Omar is a director in BHB and is also

a director in Takaful Malaysia, nominated by BHB.

Dato’ Mohamed Hassan Kamil is a director in Takaful

Malaysia, nominated by BHB. Datuk Rozaida Omar and

Dato’ Mohamed Hassan Kamil do not have any direct or

indirect interest in BHB and Takaful Malaysia.

2,567




STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL

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

BOARD RESPONSIBILITY

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

The system of internal control addresses the need for an effective and efficient business operations, sound financial reporting and control procedures, and compliance with relevant laws and regulations. The Board also recognises that reviewing the Group’s system of internal control is a concerted and continuing process, designed to manage and appropriately mitigate the risk of failure in achieving business objectives. Accordingly, the Group’s system of internal control provides reasonable assurance against material misstatement or loss. The Management has given the assurance to the Board on the adequacy and effectiveness of the Group’s risk management and internal control system.

KEY INTERNAL CONTROL PROCESSES

The key internal control processes that the Board has established in reviewing the adequacy and integrity of the system of internal control, including compliance with applicable laws, regulations, rules, directives and guidelines, are as follows:

RISK MANAGEMENT FRAMEWORK

The Board acknowledges that the identification and the management of risks involved play an important and integral part in achieving the Group’s business objectives and the management of its daily operations.

In pursuing these objectives, the Board has put in place an Operational Risk Management framework within the Company to ensure there is an on-going process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations. The Group has established a risk management process whereby the roles and responsibility of Board Risk Committee (BRC) is to provide effective oversight on company-wide risks through quarterly Board Risk Committee meetings. Senior Management involvement are assured through Management Committee meetings.

The company has undertaken an exercise of reviewing the Risk Management framework where enhancements were made to the risk management practices.

PENYATA PENGURUSAN RISIKO DAN KAWALAN DALAMAN

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

TANGGUNGJAWAB LEMBAGA PENGARAH

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

Sistem kawalan dalaman turut memenuhi keperluan untuk operasi-operasi perniagaan yang berkesan dan cekap, laporan kewangan yang baik dan prosedur-prosedur kawalan, serta pematuhan terhadap undang-undang dan peraturan-peraturan yang berkaitan. Lembaga Pengarah turut mengakui bahawa penyemakan terhadap sistem kawalan dalaman Kumpulan adalah usaha yang jitu dan berterusan, dirangka untuk mengurus dan menghalang risiko kegagalan untuk mencapai objektif-objektif perniagaan. Sewajarnya, sistem kawalan dalaman Kumpulan turut memberikan jaminan yang munasabah ke atas salah nyata atau kerugian yang ketara. Pihak Pengurusan telah memberi jaminan kepada Lembaga Pengarah berkaitan kecukupan dan keberkesanan pengurusan risiko Kumpulan dan sistem kawalan dalaman.

PROSES-PROSES KAWALAN DALAMAN UTAMA

Proses-proses kawalan dalaman utama yang telah ditubuhkan oleh Lembaga Pengarah dalam menyemak kecukupan serta integriti sistem kawalan dalaman termasuk pematuhan kepada undang-undang, peraturan-peraturan, syarat-syarat, arahan-arahan dan garis panduan-garis panduan adalah seperti berikut :

RANGKA KERJA PENGURUSAN RISIKO

Lembaga Pengarah mengiktiraf bahawa mengenal pasti dan mengurus risiko yang berkaitan adalah perkara penting dan merupakan asas untuk mencapai objektif perniagaan Kumpulan serta pengendalian operasi hariannya.

Bagi mencapai objektif tersebut, Lembaga Pengarah telah menyediakan Rangka Kerja Pengurusan Risiko Operasi dalam Syarikat, bagi memastikan supaya wujud proses yang berterusan bagi mengenalpasti, menilai, memantau dan mengurus pendedahan risiko berkaitan yang sememangnya lazim dalam operasi perniagaannya. Kumpulan telah menubuhkan proses pengurusan risiko yang berperanan untuk bertanggungjawab terhadap risiko Syarikat melalui Lembaga Pengarah Jawatankuasa Risiko (“BRC”) bagi menyediakan pemantauan berkesan terhadap keseluruhan pengurusan risiko syarikat melalui mesyuarat suku tahunannya. Pihak Pengurusan Atasan Syarikat terlibat di dalam pengurusan risiko melalui mesyuarat Jawatankuasa Pengurusan.




Syarikat telah mengambil langkah untuk mengemaskini Rangka Kerja Pengurusan Risiko untuk meningkatkan amalan pengurusan risiko.

Sebagai pencegahan risiko terhadap bencana dan / atau gangguan utama, Syarikat telah mewujudkan Rangka Kerja Pengurusan Kesinambungan Perniagaan (BCM). Pelan Kesinambungan Perniagaan yang baru telah diperkenalkan untuk memudahkan tindak balas yang berkesan terhadap gangguan perniagaan dan untuk memastikan bahawa Syarikat mampu bertindak balas terhadap insiden itu mengikut cara yang cepat dan tepat pada masanya. Pelan Pemulihan Perniagaan telah dibangunkan dan diuji fungsinya sebanyak dua kali setahun pada sistem pelayan pengeluaran yang utama.

Dalam tahun kewangan ini, pelan kesinambungan perniagaan berskala penuh telah dilaksanakan di sebuah cawangan bagi mempertingkatkan kesediaan Syarikat untuk mengekalkan operasi kritikal apabila berhadapan dengan bencana dan / atau gangguan.

Rangka Kerja Pengurusan Risiko & Modal telah disemak semula pada Disember 2013 selaras dengan pelaksanaan Rangka Kerja Modal Berasaskan Risiko bagi Pengendali Takaful (RBCT) dan Tahap Sasaran Modal Individu (ITCL). Nisbah Kecukupan Modal (CAR) dan Laporan Ujian Tekanan Syarikat dikemaskini kepada Lembaga Pengarah setiap suku tahun dan setengah tahun selaras dengan keperluan di bawah Rangka Kerja Pengurusan Risiko & Modal dan Rangka Kerja Pengurusan Aset & Liabiliti.

RANGKA KERJA TADBIR URUS PENGURUSAN LEBIHAN DANA RISIKO PESERTA (PRF)

Lembaga Pengarah telah meluluskan Rangka Kerja Tadbir Urus Pengurusan Lebihan Dana Risiko Peserta (PRF) pada November 2013 dalam persiapan untuk menyediakan proses tadbir urus dalam menguruskan kedudukan lebihan dana risiko peserta. Rangka Kerja ini membentuk sebahagian daripada proses tadbir urus korporat Takaful Malaysia untuk menggalakkan pengurusan berhemat dan amalan pengurusan risiko yang baik terhadap dana risiko takaful bagi meningkatkan daya tahan dana kewangan dan melindungi kepentingan peserta.

FUNGSI AUDIT DALAMAN

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

As a risk mitigation towards disasters and / or major disruptions; the Company has also established a Business Continuity Management (BCM) Framework. A new BCM Manual was introduced to facilitate the effective response to business disruption and to ensure that the Company is capable of responding to such incidents in an organised and timely manner. Business Continuity Plans are developed and tested for functionality and Disaster Recovery Plans are tested twice a year on the production main server. During the financial year, a full scale business continuity plan was implemented on a branch, which established the Company’s readiness to maintain critical operations when faced with possible disasters and / or disruptions.

The Risk & Capital Management Framework has been revised in December 2013 to be consistent with implementation of Risk Based Capital Framework for Takaful Operators (RBCT) and our Individual Target Capital Level (ITCL). The company’s Capital Adequacy Ratios (CAR) and Stress Testing Reports are updated on a quarterly and semi-annually basis respectively to the Board of Directors in line with the requirements under Risk & Capital Management Framework and Asset Liability Management Framework.

PARTICIPANT RISK FUND (PRF) SURPLUS MANAGEMENT GOVERNANCE FRAMEWORK

The Board has approved the PRF Surplus Management Governance Framework in November 2013 to provide the governance process in managing the participant risk fund surplus position. This Framework forms as part of Takaful Malaysia’s corporate governance process to promote prudent management and good risk management practices of takaful risk funds to enhance the funds’ financial resilience and protect the interest of participant.

INTERNAL AUDIT FUNCTION

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

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




KEY ELEMENTS OF INTERNAL CONTROL

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

• Organisational Structure

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

• Limit of Authorities

Limit of authorities has been revised and approved by the Board on 22 November 2013 and implemented in the areas of Underwriting, Claims approval, and other business process.

• Standard Operating Procedures

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

• Product Development Framework

In March 2012, Takaful Malaysia was granted the approval by BNM to adopt “launch-and-file” system for new products. In view of the “launch-and-file” system granted to Takaful Malaysia, we have reviewed the policies and procedures within the Product Development Framework, taking into consideration BNM’s supervisory expectations under the Introduction of New Product Guidelines.

• Compliance Function

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

• Whistle Blowing Policy and Fraud and Integrity Policy

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

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

UNSUR-UNSUR KAWALAN DALAMAN UTAMA

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

• Struktur Organisasi

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

• Had Kuasa

Had kuasa yang disemak telah diluluskan oleh Lembaga Pengarah pada 22 November 2013 dan telah dilaksanakan dalam bidang Pengunderaitan, Kelulusan Tuntutan, Pelaburan dan proses perniagaan yang lain.

• Prosedur Operasi Piawai

Prosedur Operasi Piawai yang mengawal seluruh proses perniagaan seperti kewangan, sumber manusia, tuntutan, pelaburan dan lain-lain telah ditempatkan di dalam organisasi.

• Rangka Kerja Pembangunan Produk

Pada bulan Mac 2012, Takaful Malaysia telah mendapat kelulusan daripada BNM untuk mengamalkan sistem “pelancaran dan fail” untuk produk-produk baru. Memandangkan sistem ”pelancaran dan fail” telah diberikan kepada Takaful Malaysia, kami telah mengkaji semula polisi dan prosedur yang merangkumi Rangka Kerja Pembangunan Produk, sambil mengambilkira jangkaan penyeliaan daripada BNM di bawah Pengenalan Garis Panduan Produk Baru.

• Fungsi Pematuhan

Syarikat telah mewujudkan Piagam Pematuhan dan Rangka Kerja yang telah ditubuhkan yang menggariskan pematuhan tadbir urus dan metodologi. Semua kehendak pematuhan, matrik, prosedur operasi piawai dan garis panduan telah di muatkan dalam Portal Korporat – Bahagian Pematuhan.


• Shariah Governance Framework

The Shariah Governance framework was revised and approved by the Shariah Advisory Body (SAB) on 22 November 2013. The framework is designed to meet the following objectives:

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

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

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

• Assets Liabilities Management Framework

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

• Takaful Operational Framework

The Company has established a framework to govern and document the operational models adopted, fund segregation policy of takaful funds, policy on investment strategy and method used for the calculation of investment profit for participant investment fund, policy on recognition of surplus / deficit and its allocation / distribution, policy on deficit rectification mechanism including repayment of qardh, management of income from takaful business, and allowable expenses charges to takaful funds.

• Surplus Management and Distribution Policy

In managing the takaful funds, takaful operators are expected to manage the interest of various stakeholders without compromising prudence. This policy serves as a guide to the Company in managing the surplus position and surplus distribution to participants and shareholders by providing key principles, considerations and practices to ensure good maintenance of fund solvency and financial resilience, and to safeguard the interests of participants and equitable treatment of participants.

The annual distribution of surplus shall be endorsed by the Shariah Advisory Body and Board of Directors.

• Business / Marketing Plan and Budget Process

The Group’s annual business / marketing plan and budget are submitted to the Board for approval.

• Polisi Pemberitahuan Maklumat dan Polisi Penipuan dan Integriti

Lembaga Pengarah juga telah meluluskan Polisi Pemberitahuan Maklumat sebagai respons kepada Akta Perlindungan Pemberi Maklumat, 2010 serta Polisi Penipuan dan Integriti pada Ogos 2011 yang penting dalam menggalakkan kelakuan beretika dalam Kumpulan.

• Rangka Kerja Tadbir Urus Syariah

Rangka Kerja Tadbir Urus Syariah telah disemak dan diluluskan oleh Badan Penasihat Syariah (BPS) pada 22 November 2013. Rangka kerja ini direka untuk memenuhi objektif berikut:

i. Untuk menetapkan struktur dan susunan tadbir urus Syariah bagi Takaful Malaysia, bagi memastikan semua operasi dan aktiviti adalah selaras dengan Syariah.

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

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

• Rangka Kerja Pengurusan Aset Liabiliti

Rangka kerja ini telah diluluskan oleh Lembaga Pengarah pada bulan November 2011 untuk menyediakan struktur asas Pengurusan Aset dan Liabiliti untuk mempertingkatkan lagi mekanisme kawalan yang sedia ada yang mendasari aktiviti perniagaan.

• Rangka Kerja Operasi Takaful

Syarikat telah mewujudkan satu rangka kerja untuk mentadbir dan mendokumentasi model operasi yang diguna-pakai, polisi pengasingan dana-dana takaful, polisi mengenai strategi pelaburan dan kaedah yang digunakan untuk pengiraan keuntungan pelaburan bagi dana pelaburan peserta, polisi pengiktirafan lebihan / defisit dan peruntukan / pengedaran, polisi mengenai mekanisma pembetulan defisit termasuk pembayaran balik qardh, pengurusan pendapatan daripada perniagaan takaful dan perbelanjaan dan caj-caj ke atas dana takaful yang dibenarkan.

• Pengurusan Lebihan dan Dasar Pengagihan

Dalam menguruskan dana-dana takaful, pengendali-pengendali takaful dijangka akan menguruskan kepentingan pelbagai pihak berkepentingan tanpa menjejaskan sikap berhemah. Polisi ini berfungsi sebagai panduan kepada Syarikat dalam menguruskan kedudukan lebihan dan pembahagian lebihan kepada peserta dan pemegang saham dengan menyediakan prinsip, pertimbangan dan amalan yang utama untuk memastikan penyelenggaraan kesolvenan dana yang




• Financial Reporting

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

• Information Technology System

IT Steering Committee

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

Data Governance Framework

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

IT Project Steering Committee

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

CONCLUSION

Although control lapses were identified for certain business processes within the Group, there were no significant control failures or weaknesses that has resulted in material loss that requires disclosure in the Group’s annual report for the financial period under review.

This statement is made in accordance with the Board of Directors resolution dated 14 March 2014.

baik dan daya tahan kewangan dan untuk melindungi kepentingan peserta dan memberikan layanan yang saksama kepada semua peserta-peserta.

Pengagihan lebihan tahunan hendaklah disahkan oleh Badan Penasihat Syariah dan Lembaga Pengarah.

• Pelan Perniagaan / Pemasaran dan Proses Belanjawan

Pelan perniagaan / pemasaran serta belanjawan tahunan Kumpulan dibentangkan kepada Lembaga Pengarah untuk kelulusan.

• Laporan Kewangan

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

• Sistem Teknologi Maklumat

Jawatankuasa Peneraju IT

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

Rangka Kerja Pengurusan Data

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

Jawatankuasa Peneraju Projek IT

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

KESIMPULAN

Walaupun terdapat kelemahan kawalan yang dikenal pasti dalam proses-proses perniagaan tertentu dalam Kumpulan, namun tiada sebarang kegagalan kawalan atau kelemahan ketara yang menyebabkan kerugian besar yang memerlukan pendedahan dalam laporan tahunan Kumpulan bagi tempoh kewangan yang dikaji.

Penyata ini disediakan selaras dengan resolusi Lembaga Pengarah bertarikh 14 Mac 2014.



Dato’ Paduka Ismee Ismail

Dear Shareholders, It is my pleasure to present the Annual Report of Syarikat Takaful Malaysia Berhad for the financial year ended 2013.


Penyata Pengerusi


During the year under review, the world economy grew

at a more subdued pace of 3% due to the challenging

global financial climate and competitive market

pressures. The fiscal and monetary policy fine-tunings

in the United States as well as the provisional risks

arising from the situation in Europe contributed to this

slower growth rate. For Malaysia, the economy was

propelled by strong domestic demand that resulted in

an expected Gross Domestic Product (GDP) growth

for 2013 of between 4.5% to 5.0%. This demand was

supported not only by robust consumption and

investment activities, but also the multiplier effect of

ongoing Economic Transformation Programme (ETP)

projects.

Pada tahun yang ditinjau, ekonomi dunia berkembang

pada kadar yang lebih perlahan, sebanyak 3% disebabkan

oleh keadaan kewangan global yang mencabar dan

tekanan persaingan dalam pasaran. Pelarasan dasar

fiskal dan kewangan di Amerika Syarikat serta risiko

sementara yang timbul daripada keadaan di Eropah turut

mendorong kadar pertumbuhan yang lebih lembap ini.

Di Malaysia, ekonomi digerakkan oleh permintaan dalam

negeri yang kukuh untuk menghasilkan pertumbuhan

Keluaran Dalam Negara Kasar (KDNK) antara 4.5%

kepada 5.0% pada tahun 2013. Permintaan ini disokong

bukan sahaja oleh aktiviti kepenggunaan dan pelaburan

yang aktif, malahan kesan gandaan pelbagai projek

Program Transformasi Ekonomi (ETP) kerajaan yang

dilaksanakan.

Para Pemegang Saham, Saya dengan sukacitanya membentangkan Laporan Tahunan Syarikat Takaful Malaysia Berhad bagi tahun kewangan berakhir 2013.


The Islamic finance sector however, particularly the

Islamic insurance (Takaful) industry, witnessed sizable

growth globally when measured in terms of Gross Written

Contributions. This was complemented by increased

profitability, more risk diversification and improvements in

claims and expenses ratios. This trend was mirrored in the

Takaful industry in Malaysia that cumulatively registered

positive annual growth amidst the backdrop of intense

industry competition, an evolving regulatory framework

environment and prevailing risk practices that had impacted

the industry on the whole.

On the global scale, Malaysia, together with Saudi Arabia

and the United Arab Emirates has been recognized as one

of the three main key markets of Takaful showing double-

digit growth in profitability. The relatively low penetration

rate in the Malaysian Takaful industry had resulted in the

emergence of a significant market for Takaful operators

to expand their market share over conventional insurance

companies and therefore firmly establish a strong foothold

in this growing market.

Taking into account the positive growth trend of the

local insurance industry arena, it gives me great pleasure

to report that Takaful Malaysia has continued its growth

momentum from previous years and was successful in

recording outstanding financial results for the year under

review. The Group registered total assets of RM6.9 billion

and established itself as the market leader in the Group

Family Takaful business by capturing close to 40% of this

Sungguhpun demikian, sektor kewangan Islam khususnya

industri Insurans Islam (Takaful) sebaliknya menyaksikan

pertumbuhan besar di seluruh dunia jika diukur dari segi

Caruman Jaminan Kasar. Ini disusuli oleh peningkatan kadar

keuntungan, risiko yang lebih berpelbagai dan peningkatan

dalam kadar nisbah tuntutan dan perbelanjaan. Arah aliran

ini digambarkan dalam Industri Takaful di Malaysia yang

secara keseluruhannya menghasilkan pertumbuhan tahunan

positif walaupun berhadapan dengan persaingan sengit

dalam industri, persekitaran rangka kerja penguatkuasaan

peraturan yang mengalami perubahan dan amalan risiko

semasa yang memberi kesan kepada industri ini secara

umum.

Di peringkat global, Malaysia, bersama-sama dengan Arab

Saudi dan Emiriyah Arab Bersatu diiktiraf sebagai salah satu

daripada tiga pasaran utama Takaful telah menunjukkan

pertumbuhan dua digit dalam keuntungan. Kadar

penembusan yang agak rendah dalam industri Takaful

Malaysia mewujudkan lonjakan besar dalam pasaran apabila

pengendali Takaful berusaha untuk menambah bahagian

pasaran mereka berbanding syarikat insurans konvensional

dan seterusnya mengukuhkan kedudukannya di pasaran

yang sedang berkembang ini.

Dengan mengambil kira arah aliran pertumbuhan

positif arena industri insurans tempatan, saya dengan

sukacitanya ingin melaporkan bahawa Takaful Malaysia

meneruskan momentum pertumbuhannya dari tahun-

tahun sebelumnya dan berjaya mencatatkan keputusan

Penyata Pengerusi



Penyata Pengerusi


kewangan yang memberangsangkan pada tahun yang

ditinjau ini. Kumpulan mencatatkan aset berjumlah RM6.9

bilion dan mengukuhkan kedudukannya sebagai peneraju

pasaran dalam perniagaan Takaful Keluarga Berkelompok

dengan menguasai hampir 40% daripada sektor pasaran ini

dan 23% daripada gabungan perniagaan Takaful Keluarga

dan Am, pada S3 2013. Takaful Malaysia turut menerajui

perniagaan Manfaat Pekerja dengan sasaran untuk

menguasai bahagian pasaran yang lebih besar pada tahun-

tahun yang akan datang.

Kelebihan yang dimiliki oleh Takaful Malaysia sebagai

syarikat Takaful pertama di Malaysia, disokong oleh

proposisi unik kami sebagai pengendali Takaful pertama

dan satu-satunya di Malaysia yang menawarkan Pulangan

Tunai sebanyak 15% kepada pelanggan kami yang dihargai

secara konsisten (sekiranya mereka tidak membuat

sebarang tuntutan sepanjang tempoh perlindungan)

mengukuhkan kedudukan asas Syarikat di pasaran.

Kelebihan semula jadi ini diteguhkan oleh strategi

pengurusan kami yang aktif, pengunderaitan dan aktiviti

pelaburan yang berhemat, serta produk mengutamakan

pelanggan yang komprehensif bagi disesuaikan dengan

keperluan para pelanggan kami yang semakin berkembang.

Di samping itu, kami telah mempertingkatkan lagi taraf

infrastruktur dan operasi kami, meluaskan rangkaian,

memperkasakan tenaga agensi dan memupuk perkongsian

strategik dengan pelanggan korporat dan bank. Usaha

ini berserta dengan strategi pemasaran dan kempen

penjenamaan yang agresif telah memperluaskan lagi

bahagian pasaran kami.

TAHUN YANG DITINJAU – PERISTIWA PENTING &

PENCAPAIAN

PRESTASI KEWANGAN

Prestasi Kumpulan

Bagi tahun yang ditinjau, hasil kendalian Kumpulan

meningkat sebanyak 6% kepada RM1.71 bilion, sementara

keuntungan sebelum cukai dan zakat (PBTZ) berada pada

tahap RM179.3 juta berbanding RM125.5 juta, peningkatan

sebanyak 43% berbanding tahun kewangan sebelumnya.

Keuntungan selepas cukai dan zakat (PATZ) meningkat

sebanyak 34% kepada RM134.4 juta daripada RM100.1 juta

pada tahun kewangan lepas. Hasil dan keuntungan yang

bertambah baik ini didorong terutamanya oleh jualan

lebih tinggi yang dijana oleh perniagaan Takaful Keluarga,

keputusan pengunderaitan dan pelaburan yang lebih baik

dan pendapatan yuran wakalah bersih yang lebih tinggi,

hasil daripada pertumbuhan perniagaan yang mantap.

market sector and 23% of the combined Family and General

Takaful business, in Q3 2013. Takaful Malaysia also takes the

lead in the Employee Benefit business with the target of

securing a larger market share in future years.

Takaful Malaysia’s advantageous position as the first

Takaful operator in Malaysia is underpinned by our unique

proposition as the first and only Takaful operator in Malaysia

to consistently offer our valued customers a 15% Cash Back

(should they make no claims during the coverage period)

fundamentally strengthening the Company’s foothold in

the market.

This natural advantage was bolstered by our active

management strategy, prudent underwriting and

investment activities, as well as comprehensive customer-

centric products to suit the growing needs of our

customers. In addition, we enhanced our infrastructure

and operations, grew extensive network, empowered our

agency force and forged strategic partnerships with our

corporate clients and bank partners. These, coupled with

a more aggressive marketing and branding campaigns

resulted in an expansion of our market share.

THE YEAR IN REVIEW – HIGHLIGHTS & ACHIEVEMENTS

FINANCIAL PERFORMANCE

Group Performance

For the year under review, the Group’s operating revenue

grew by 6% to RM1.71 billion, while profit before taxation and

zakat (PBTZ) was measured at RM179.3 million compared

to RM125.5 million, increased by 43% from the previous

financial year.

Profit after tax and zakat (PATZ) grew by 34% to RM134.4

million from RM100.1 million in the previous financial year.

The improved revenue and profit were largely attributable

to higher sales generated by the Family Takaful business,

better underwriting and investment results and higher net

wakalah fee income arising from strong business growth.

Takaful Malaysia’s total asset size increased by 9% to RM6.9

billion. Total profit from investment, comprising realized

gains and fair value changes, increased by 7% to RM386.6

million in 2013 as compared to RM362.4 million in the

previous financial year.


Penyata Pengerusi


Company Performance

Takaful Malaysia ended the financial year under review with

record high profits. We outpaced the market and continued

to register robust financial growth while positioning

ourselves to capitalize on our already strong foothold in the

local Takaful industry.

The Company achieved 43% growth in PBTZ amounting

to RM182.3 million as compared to RM127.8 million in the

previous financial year. Operating revenue increased by

9% to RM1.54 billion from RM1.41 billion in 2012. Total Gross

contribution was recorded at RM1.3 billion, 8% increased

from the RM1.2 billion in 2012.

Both Family Takaful and General Takaful gross contribution

grew by 10% from previous financial year. Family Takaful

gross contribution was RM932.2 million compared to

RM848.7 million in the previous year and General Takaful

gross contribution was RM386.6 million compared to

RM349.5 million in the previous financial year.

The higher PBZT was largely due to better underwriting,

investment results and higher net wakalah fee income

arising from the growth in both the Family and General

Takaful Business.

The much higher growth in PBZT has a direct impact to profit

after tax and zakat (PATZ) which grew by 36% to RM139.3

million from RM102.7 million in the previous financial year.

Saiz jumlah aset Takaful Malaysia meningkat sebanyak

9% kepada RM6.9 bilion. Jumlah keuntungan daripada

pelaburan, yang meliputi keuntungan yang direalisasi dan

perubahan nilai saksama, bertambah 7% kepada RM386.6

juta pada 2013 berbanding dengan RM362.4 juta pada

tahun kewangan sebelumnya.

Prestasi Syarikat

Takaful Malaysia mengakhiri tahun kewangan yang ditinjau

dengan mencatatkan rekod keuntungan yang tinggi. Kami

mengatasi pencapaian pasaran dan terus mencatatkan

pertumbuhan kewangan yang kukuh sambil bersedia untuk

memanfaatkan kelebihan daripada kedudukan kami yang

teguh dalam industri Takaful tempatan.

Syarikat mencapai pertumbuhan sebanyak 43% dalam

PBTZ, berjumlah RM182.3 juta berbanding RM127.8 juta

pada tahun kewangan lepas. Hasil kendalian meningkat

sebanyak 9% kepada RM1.54 bilion daripada RM1.41 bilion

pada 2012. Jumlah Caruman Kasar yang dicatatkan adalah

sebanyak RM1.3 bilion, peningkatan sebanyak 8% daripada

RM1.2 bilion pada 2012.

Caruman kasar daripada Takaful Keluarga dan Takaful

Am berkembang sebanyak 10% daripada tahun kewangan

terdahulu. Caruman Kasar Takaful Keluarga berjumlah

RM932.2 juta berbanding RM848.7 juta pada tahun lepas

dan caruman kasar Takaful Am pula berjumlah RM386.6 juta

berbanding dengan RM349.5 juta pada tahun kewangan

lepas.


The improved revenue and profit were largely attributable

to higher sales generated by the Family Takaful business,

better underwriting and investment results and higher net

wakalah fee income arising from strong business growth.

REVIEW OF SUBSIDIARIES

PT Syarikat Takaful Indonesia (STI)

Our Indonesian subsidiaries, PT Asuransi Takaful Umum

(ATU), PT Asuransi Takaful Keluarga (ATK) and Syarikat

Takaful Indonesia (STI) continue to face stiff competition

from conventional domestic players who are still permitted

to sell Islamic products through a window concept.

Consequently, contribution from our Indonesian operations

to the Group’s bottom line is less than 5% of the total, with

gross contribution standing at less than 15% of the Group’s

total gross contribution.

However, we remain positive of our prospects in the

country given the Group’s 18-year presence in Indonesia and

expected regulatory changes to disallow the operating of

Islamic windows by conventional insurers. Our confidence is

further bolstered by the country’s fast growing population,

a large proportion of who are Muslims. With rising incomes

in tandem with rapid development, demand for protection

and investment products in Islamic and conventional

insurance is likely to increase in the near future.

Keuntungan sebelum zakat dan cukai yang lebih tinggi

disebabkan oleh keputusan pengunderaitan serta pelaburan

yang lebih baik dan pendapatan yuran wakalah bersih

yang lebih tinggi, hasil daripada pertumbuhan Perniagaan

Takaful Keluarga dan Takaful Am.

Pertumbuhan PBZT yang lebih tinggi ini mempunyai kesan

langsung terhadap keuntungan selepas cukai dan zakat

(PATZ) yang melonjak sebanyak 36% kepada RM139.3 juta

daripada RM102.7 juta pada tahun kewangan lepas. Hasil

dan keuntungan yang semakin baik ini didorong oleh jualan

lebih tinggi yang dijana oleh perniagaan Takaful Keluarga,

keputusan pengunderaitan dan pelaburan yang lebih baik

dan pendapatan yuran wakalah bersih yang lebih baik hasil

keteguhan pertumbuhan perniagaan.

TINJAUAN SYARIKAT SUBSIDIARI

PT Syarikat Takaful Indonesia (STI)

Syarikat subsidiari kami di Indonesia, PT Asuransi Takaful

Umum (ATU), PT Asuransi Takaful Keluarga (ATK) dan

Syarikat Takaful Indonesia (STI) terus berdepan persaingan

sengit daripada syarikat insurans konvensional yang masih

dibenarkan menjual produk Islam melalui konsep ‘window’.

Justeru, sumbangan daripada operasi Indonesia kami

kepada hasil Kumpulan adalah kurang 5% daripada jumlah,

dengan sumbangan kasar kurang daripada 15% daripada

jumlah sumbangan kasar Kumpulan.

Penyata Pengerusi



We will continue to focus to grow our Indonesia business

via the bank and retail agency force.

DIVIDENDS

In light of the solid performance registered, the Board

of Directors has declared two interim dividends to the

shareholders during the financial year ended 31 December

2013. The first interim dividend payout of 12% single tier

amounting to RM19.5 million and the second interim

dividend of 30% single tier amounting to RM48.8 million

were announced on 3 September 2013 and 26 November

2013 respectively. This translated into a dividend yield

of 4.1% based on the Company’s share closing price of

RM10.30 as at 31 December 2013.

In addition to the above two interim dividends, the Board

of Directors is also proposing for a final dividend of 40%

single tier amounting to RM65.1 million at the forthcoming

Annual General Meeting. The total two interim and the final

dividends represent a payout ratio of approximately 99% of

the net profits generated for the year ended 31 December

2013.

UNDERWRITING & INVESTMENT

Takaful Malaysia registered stronger performance

in underwriting activities as a result of our prudent

assessment in underwriting risks. Our enhanced database

and administration efficiency supported by better-

cost control and a robust regulatory framework also

contributed towards the Company’s reduced expense

margin during the financial year under review and this

translated into improved profitability across most of our

product segments.

The Company accomplished yet another record-breaking

investment income at Company level in 2013. We registered

an investment income of RM368.2 million, an increase by

RM34.4 million compared to RM333.8 million recorded

in 2012. Despite the volatile and challenging investment

environment, this was achieved by our effective strategic

asset allocation which was skewed towards achieving the

long term returns.

Walau bagaimanapun, kami kekal positif berhubung

prospek kami di negara ini berasaskan kepada kehadiran

Kumpulan selama 18 tahun di Indonesia. Kami menjangka

perubahan peraturan untuk tidak membenarkan syarikat

insurans konvensional mengendalikan operasi produk

insurans Islam. Keyakinan kami disokong oleh pertambahan

bilangan penduduk negara tersebut, yang sebahagian

besarnya beragama Islam. Selaras dengan pembangunan

pesat yang menyaksikan peningkatan pendapatan,

permintaan bagi produk perlindungan dan pelaburan

dalam insurans Islam dan konvensional berkemungkinan

besar akan turut meningkat dalam jangka masa terdekat.

Kami akan terus fokus terhadap usaha mengembangkan

pertumbuhan perniagaan kami di Indonesia melalui

kerjasama dengan bank dan agensi runcit.

DIVIDEN

Berlandaskan kepada prestasi teguh, Lembaga Pengarah

telah mengisytiharkan dua dividen interim kepada para

pemegang saham pada tahun kewangan berakhir 31

Disember 2013. Pembayaran dividen interim pertama tier

tunggal sebanyak 12% berjumlah RM19.5 juta dan dividen

interim kedua tier tunggal sebanyak 30% yang berjumlah

RM48.8 juta masing-masing telah diumumkan pada 3

September 2013 dan 26 November 2013. Ini menjadikan

hasil dividen sebanyak 4.1%, berdasarkan kepada harga

penutup saham Syarikat RM10.30 pada 31 Disember 2013.

Di samping dua dividen interim di atas, Lembaga Pengarah

juga mencadangkan pembayaran dividen akhir tier tunggal

sebanyak 40% berjumlah RM65.1 juta pada Mesyuarat

Agung Tahunan yang akan datang. Jumlah dua dividen

interim dan dividen akhir yang diumumkan mewakili nisbah

pembayaran kira-kira 99% daripada keuntungan bersih

yang dijana bagi tahun berakhir 31 Disember 2013.

PENGUNDERAITAN & PELABURAN

Kejayaan Takaful Malaysia mencatatkan prestasi

membanggakan dalam aktiviti pengunderaitan adalah hasil

penilaian berhemah kami dalam risiko pengunderaitan.

Peningkatan pangkalan data dan kecekapan pentadbiran

kami yang disokong oleh usaha pengawalan kos yang

lebih baik dan rangka kerja penguatkuasaan peraturan

yang kukuh turut menyumbang kepada pengurangan

margin perbelanjaan pada tahun kewangan yang ditinjau.

Ini diperlihatkan melalui kadar keuntungan yang semakin

meningkat bagi semua segmen produk kami.

Penyata Pengerusi



Our investment continued to be anchored by two main

asset classes; equities and Sukuk portfolios, both which

delivered exceptional investment yields. On the equity

side, the Malaysian equity market outperformed in 2013

as investors’ confidence returned following the conclusion

of General Election in May 2013. Foreigners were the net

buyers of Malaysian equities from January to May, who

then became net sellers from June 2013 onwards. Despite

the aggressive foreign selling, Bursa Malaysia managed to

register record multiple highs due to the strong support of

local institution and posted a commendable gain of 10.5%

in 2013 and our FTSE Bursa Malaysia KL Composite Index

managed to close at record high of 1,866.96 points at 31

December 2013.

Total income from equities posted a sharp gain of 59% to

RM102.7 million in 2013 compared to RM64.8 million in 2012

to record a Return on Investment (ROI) of 13.61%. Aside

from the positive market performance, our active portfolio

management enabled us to take advantage of certain

market weaknesses to increase our equity exposure and

gradually realizing profits as and when opportunities arise.

The team had picked counters which had commendable

track records, capable management teams, quality growth

with strong earnings visibility, solid balance sheets and

healthy free cash flow that was able to sustain high dividend

yields and maintain good liquidity.

The Company’s Sukuk portfolio recorded a commendable

return of 6.71% despite lesser opportunity to realize profit as

the yield curve shifted upwards, particularly in the second

half of the year. Nonetheless, our active management

strategy enabled us to take advantage of the favorable

yield movement in the first half of 2013 to realize profit from

our existing holdings. We also benefited from numerous

corporate exercises undertaken by certain issuers resulting

in redemption and/or refinancing of existing Sukuk.

Syarikat mencapai satu lagi pendapatan pelaburan yang

memecahkan rekod di peringkat Syarikat pada 2013. Kami

mencatatkan pendapatan pelaburan sebanyak RM368.2

juta, meningkat sebanyak RM34.4 juta berbanding RM333.8

juta yang dicapai pada tahun 2012. Walaupun berhadapan

dengan persekitaran pelaburan tidak menentu dan sangat

mencabar, keputusan ini dicapai melalui keberkesanan

peruntukan aset strategik kami yang disasar untuk

menghasilkan pulangan jangka panjang.

Pelaburan kami terus diperkukuh dengan dua kelas

aset utama; iaitu portfolio ekuiti dan Sukuk, yang telah

menampilkan hasil pelaburan yang luar biasa. Dari segi

ekuiti, pasaran ekuiti Malaysia mengatasi jangkaan pretasi

pada tahun 2013 kerana keyakinan pelabur telah kembali

berikutan selesainya Pilihan Raya Umum pada Mei 2013.

Pelabur asing merupakan pembeli bersih bagi ekuiti Malaysia

dari bulan Januari hingga Mei, dan menjadi penjual bersih

dari bulan Jun dan seterusnya. Walaupun menghadapi

jualan agresif pelabur asing, Bursa Malaysia tetap mampu

mencatatkan beberapa pencapaian tertinggi disebabkan

oleh sokongan teguh daripada pelabur institusi tempatan

dan mencatatkan keuntungan memberangsangkan

sebanyak 10.5% pada tahun 2013 dan Indeks Komposit KL

FTSE Bursa Malaysia berjaya ditutup pada rekod tinggi iaitu

1,866.96 mata pada 31 Disember 2013.

Jumlah pendapatan daripada ekuiti mencatatkan

lonjakan keuntungan sebanyak 59% kepada RM102.7 juta

pada tahun 2013 berbanding RM64.8 juta pada tahun

2012 untuk mencatatkan Pulangan ke atas Pelaburan

(ROI) sebanyak 13.61%. Selain daripada prestasi pasaran

yang positif, pengurusan portfolio aktif kami juga telah

membolehkan kami mengambil kesempatan daripada

beberapa kelemahan pasaran untuk mempertingkatkan

pendedahan ekuiti kami dan merealisasi keuntungan secara

beransur-ansur apabila berpeluang. Pasukan kami memilih

kaunter yang mempunyai rekod lampau yang cemerlang,

pasukan pengurusan berkebolehan, pertumbuhan

berkualiti dengan keputusan pendapatan yang kukuh, kunci

kira-kira yang mantap dan aliran tunai yang teguh untuk

membolehkan penghasilan dividen tinggi yang berterusan

dan mengekalkan kecairan yang baik.

Portfolio Sukuk Syarikat mencatatkan pulangan yang

baik sebanyak 6.71% walaupun peluang untuk merealisasi

keuntungan lebih rendah kerana keluk hasil bertukar ke

arah meningkat. Walau bagaimanapun, strategi pengurusan

aktif kami telah membolehkan kami memanfaatkan

kelebihan pergerakan hasil yang positif pada separuh tahun

kedua 2013 untuk merealisasikan keuntungan daripada

Penyata Pengerusi



AMPLIFYING THE TAKAFUL MALAYSIA BRAND

Takaful Malaysia is proud to be the first Takaful operator

in the local insurance industry and we consistently go the

extra mile in providing the best Takaful solutions for our

valued customers all with the unswerving aim of creating

increasing shareholder return.

Leveraging on the Company’s unique proposition of

rewarding its customers with a 15% Cash Back reward if

they made no claims during the coverage period has truly

distinguished us from other competitors in the market - be

it both Takaful operators and the Conventional insurance

providers. We improved our marketing and branding

initiatives more strategically to further enhance our brand

presence amongst the public, taking us closer towards

becoming a household name and establishing ourselves as

the preferred choice for protection.

The Company launched the popular “We Should Talk”

Campaign that saw Takaful Malaysia distributing more

than one million flyers in three languages to the public to

help them understand better how Takaful Malaysia rewards

its customers apart from just providing comprehensive

protection product solutions that cater to diverse needs.

Realizing the effectiveness of point-of-purchase advertising,

Takaful Malaysia also successfully launched another

branding initiative to reach consumers with its

‘Be Rewarded With 15% Cash Back For No Claims’

advertising campaign. This strategic aggressive effort

pegangan yang sedia ada. Kami turut mendapat manfaat

daripada beberapa langkah korporat penerbit tertentu

yang melakukan penebusan dan/atau pembiayaan semula

Sukuk sedia ada.

MENGUKUHKAN JENAMA TAKAFUL MALAYSIA

Takaful Malaysia berbangga menjadi syarikat Takaful

pertama dalam industri insurans tempatan dan kami sentiasa

menggandakan usaha untuk menyediakan penyelesaian

Takaful yang terbaik kepada para pelanggan kami yang

dihargai dengan matlamat utama untuk mempertingkatkan

pulangan pemegang saham.

Dengan memanfaatkan proposisi unik yang menawarkan

ganjaran Pulangan Tunai sebanyak 15% jika mereka tidak

membuat tuntutan sepanjang tempoh perlindungan

benar-benar membezakan kami daripada para pesaing

lain di pasaran – sama ada syarikat Takaful mahu pun

penyedia insurans Konvensional. Kami telah memperbaiki

inisiatif strategi pemasaran dan penjenamaan kami untuk

mengukuhkan lagi kehadiran jenama kami pada pandangan

umum, menjadikan kami semakin hampir untuk menjadi

jenama seisi rumah dan mengukuhkan kedudukan kami

sebagai pilihan utama untuk perlindungan.

Syarikat telah melancarkan Kempen popular “Kita

Perlu Berbincang” yang menyaksikan Takaful Malaysia

mengedarkan lebih daripada satu juta risalah dalam tiga

bahasa kepada orang ramai bagi membantu mereka

memahami bagaimana Takaful Malaysia memberi ganjaran

Penyata Pengerusi



was carried out to continuously expand the visibility and

benefits of Takaful Malaysia’s brand to the public.

During the financial year under review, Takaful Malaysia

paid out a record breaking total of RM29.6 million through

the 15% Cash Back to its valued customers and business

partners as a result of positive growth in our General

Takaful portfolio, thus keeping in line of our brand promise

of ‘We Protect. We Care. We Share’.

EMPOWERING OUR OPERATIONS

Takaful Malaysia made significant improvements to its

corporate operations to achieve optimum performance. The

Company revamped its business processes and revisited

the organizational structure of the general operations to

accommodate its business goals and targeted growth. This

also served as an opportunity to reinforce its business to

deliver lasting reserves and sustainable improvements in

the Company’s operational efficiency.

Additionally, the Company outlined realistic strategies to

provide capacity flexibility, faster product development

cycle, enhanced customer experience and improved

distribution productivity whilst maintaining ‘business as

usual’ to manage the volume of our existing business that

resulted in strong management control and supervision

and secured operational organic growth internally.

Takaful Malaysia enhanced its technology competency

tremendously during the year under review. We enabled

File Transfer Protocol (FTP) and e-Submission services

for selected products and managed to integrate and

implement an On-Base system to track and interface with

the Sales Customer Relationship Management (CRM)

catered for Corporate Business and Bancatakaful divisions.

The Company adopted smart underwriting features in

its Data Management System for certain products to

hasten the processing time for approvals. In addition,

Takaful Malaysia also instigated a major Enterprise Backup

Solution that enabled the Infrastructure Technology (IT)

team to effectively manage the entire enterprise backup

infrastructure and reduced the Company’s renewal and

licensing costs by almost RM700,000.

kepada para pelanggannya dan bukan hanya menyediakan

penyelesaian produk perlindungan komprehensif yang

memenuhi pelbagai keperluan.

Menyedari keberkesanan pengiklanan di titik pembelian,

Takaful Malaysia juga berjaya melancarkan satu lagi inisiatif

penjenamaan untuk sampai kepada pengguna melalui

kempen iklan ‘Dapatkan Ganjaran Pulangan Tunai 15% Jika

Tiada Tuntutan’. Usaha agresif strategik ini dilaksanakan

untuk terus mempertingkatkan kehadiran dan manfaat

yang diberi oleh jenama Takaful Malaysia kepada orang

ramai.

Pada tahun kewangan yang ditinjau, Takaful Malaysia

telah mencatatkan rekod pembayaran sebanyak RM29.6

juta melalui Pulangan Tunai sebanyak 15% kepada para

pelanggan dan rakan perniagaan portfolio Takaful Am yang

dihargai dan seterusnya menepati janji jenama kami ‘Kami

Lindungi. Kami Prihatin. Kami Berkongsi’.

MEMPERKASAKAN OPERASI KAMI

Takaful Malaysia mencatatkan peningkatan ketara dalam

operasi korporatnya untuk mencapai prestasi optimum.

Syarikat telah menyusun semua proses perniagaannya

dan mengkaji semula struktur organisasi operasi amnya

untuk diselaraskan dengan matlamat perniagaan dan

pertumbuhan yang disasarkan. Ia juga berperanan

sebagai landasan bagi mengukuhkan perniagaannya bagi

menghasilkan rizab yang berterusan dan peningkatan

lestari dalam kecekapan operasi Syarikat.

Di samping itu, Syarikat turut menggariskan pelbagai

strategi yang realistik untuk menyediakan kapasiti yang

berdaya fleksibel, kitaran pembangunan produk yang

lebih pantas, memperhebatkan pengalaman pelanggan

dan mempertingkatkan produktiviti pengedaran sambil

mengekalkan perjalanan ‘perniagaan seperti biasa’. Ini

bertujuan untuk menguruskan jumlah perniagaan sedia

ada yang berjaya menghasilkan kawalan dan pemantauan

pengurusan yang mantap serta pertumbuhan organik

operasi dalaman yang terjamin.

Takaful Malaysia telah melonjakkan kecekapan teknologi

dengan ketara pada tahun yang ditinjau. Kami telah

mengupayakan Protokol Pemindahan Fail (FTP) dan

perkhidmatan e-Serahan untuk produk terpilih dan berjaya

mengintegrasikan dan melaksanakan sistem On-Base bagi

mengesan dan berhubung antara muka dengan Bahagian

Jualan Pengurusan Perhubungan Pelanggan (CRM) yang

disediakan untuk bahagian Perniagaan Korporat dan

Bankatakaful.

Penyata Pengerusi



OPTIMIZING OUR PEOPLE

We strongly believe that our employees are our greatest

assets and they are the key to our growth, success and

sustainability. Our human resource strategies have focused

on building employees’ capabilities to achieve higher

performance in this challenging environment. This has been

achieved by improving the employees’ efficiency through

structured and customized trainings and development

programs. We also ensured the performance reviews stayed

relevant with the business to drive the right behaviour. We

established a solid performance management strategy

coupled with the automation of key processes in order

to provide the Company with a significant competitive

advantage to drive our growth to greater heights.

In meeting the expectation of our shareholders

expectations, we continued to focus on innovation and

transformation processes that would have an impact on

the workforce. Our focus on client-centricity, continuous

improvement and implementation of new technologies

to increase employees’ productivity influenced the way

of working and the required skills needed to build and

maintain the Company’s performance.

On 24 July 2013, the shareholders of the Company

approved the Long Term Incentive Plan (LTIP) proposed

during the Extraordinary General Meeting. The program

involved the establishment and implementation of a

long-term incentive plan of up to 10% of the issued and

Syarikat menerima pakai ciri-ciri pengunderaitan pintar

dalam Sistem Pengurusan Datanya bagi produk tertentu

untuk mempercepatkan masa pemprosesan kelulusan.

Selain itu, Takaful Malaysia juga melancarkan sebuah

Penyelesaian Sokongan Perniagaan yang membolehkan

pasukan Teknologi Infrastruktur (IT) untuk menguruskan

dengan berkesan seluruh infrastruktur sokongan

perniagaan dan mengurangkan kos pembaharuan dan

pelesenan Syarikat sebanyak RM700,000.

MENGOPTIMUMKAN WARGA KERJA KAMI

Kami percaya bahawa warga kerja kami merupakan

aset terpenting Syarikat dan mereka merupakan kunci

pertumbuhan, kejayaan dan kemampanan kami. Strategi

sumber manusia kami memfokus terhadap pembinaan

keupayaan kakitangan untuk mencapai prestasi yang

lebih tinggi di dalam persekitaran yang mencabar. Ini telah

dicapai melalui peningkatan kecekapan warga kerja melalui

pelbagai program latihan dan pembangunan yang tersusun

dan dirangka khas untuk mereka. Kami turut memastikan

agar prestasi kajian kekal relevan dengan perniagaan

untuk memandu ke arah tingkah laku yang betul. Kami

mewujudkan strategi pengurusan prestasi yang kukuh

berserta dengan automasi proses-proses utama untuk

menyediakan kelebihan daya saingan yang ketara kepada

Syarikat bagi memacu pertumbuhan ke tahap yang lebih

tinggi.

Dalam memenuhi jangkaan para pemegang saham, kami

terus memberi tumpuan terhadap proses inovasi dan

Penyata Pengerusi



paid-up share capital of the Company at any point in time

throughout the duration of the LTIP to eligible employees

and Executive Directors of the Group.

DELIVERING OUR CORPORATE BRAND PROMISE

Fostering goodwill and learning, and building relationships

that transcend race, gender and age are what we as a

company continue to practice via our community-based

people-oriented projects. In line with our corporate

philosophy of being a model in Corporate Social

Responsibility (CSR), we are continuously committed in

delivering our brand promise of ‘We Protect. We Care. We

Share’ throughout the Company as well as external parties.

We demonstrated our perseverance in improving lives

and building the community through wide-ranging CSR

activities involving our staff and management. During the

financial year under review, we disbursed approximately

RM1 million under our Takaful myJalinan Corporate Social

Responsibility Programs. Our CSR initiatives enabled us

to provide both monetary and in-kind contributions to

various charitable organisations, education centres and

communities. In addition, the Company also made zakat

contributions across all 14 state religious departments

amounting to RM1.16 million.

transformasi yang akan memberi kesan kepada tenaga kerja.

Fokus kami terhadap sikap mengutamakan pelanggan,

peningkatan berterusan dan pelaksanaan teknologi baru

bagi mempertingkatkan produktiviti warga kerja telah

mempengaruhi cara kerja dan tuntutan kemahiran yang

diperlukan bagi membina dan mengekalkan prestasi

Syarikat.

Pada 24 Julai 2013, para pemegang saham Syarikat

telah meluluskan Pelan Insentif Jangka Panjang (LTIP)

yang dicadangkan semasa Mesyuarat Agung Luar Biasa.

Program tersebut melibatkan penubuhan dan pelaksanaan

pelan insentif jangka panjang sehingga 10% daripada modal

saham dibenarkan dan berbayar Syarikat pada satu-satu

masa sepanjang tempoh LTIP kepada warga kerja dan

Pengarah Eksekutif Kumpulan yang layak.

MENYAMPAIKAN JENAMA KORPORAT KAMI

Memupuk muhibah dan pembelajaran, dan membina

hubungan yang merentasi bangsa, jantina dan usia

sentiasa menjadi amalan syarikat kami melalui projek-

projek berasaskan kemasyarakatan yang berorientasikan

kemanusiaan. Sejajar dengan falsafah korporat kami

untuk menjadi teladan terbaik dalam Tanggungjawab

Sosial Korporat (CSR), kami terus beriltizam untuk

menyampaikan janji jenama kami iaitu ‘Kami Lindungi. Kami

Prihatin. Kami Berkongsi’ di peringkat Syarikat dan juga

pihak luar. Kami mempamerkan keutuhan kami melalui

pelbagai jenis aktiviti CSR yang melibatkan kakitangan

dan juga pihak pengurusan. Pada tahun kewangan yang

Penyata Pengerusi



ACCOLADES

Takaful Malaysia garnered significant accolades and

recognition during the year. In February 2013, we were

acclaimed as the Best Takaful Company in Malaysia at the

7th International Takaful Awards held in Cairo. The award

was in recognition of the excellence dedicated to the

Takaful industry and having demonstrated superior quality

thereby distinguishing Takaful Malaysia from its peers.

Takaful Malaysia was also awarded the ‘Best Performing

Stock’ under the Finance Sector at the prestigious annual

awards presentation of The Edge Billion Ringgit Club

Corporate Awards 2013 in September 2013. We were

proud to be acknowledged as the first ever Islamic Financial

Institution to have won any awards given by The Edge

Billion Ringgit Club (BRC) Corporate Awards. The award

was presented by yAB Dato’ Seri Mohd Najib Tun Abdul

Razak, Prime Minister of Malaysia.

PROSPECTS AND OUTLOOK

The Takaful industry in Malaysia has expanded at a rapid

pace over the last couple of years. Relying on this positive

development, we expect the growth of the Takaful sector

for 2014 to remain strong taking into consideration that

healthy growth prospects and improved risk management

will lead to increased demand for Takaful amongst the

public at large.

ditinjau, kami membelanjakan anggaran RM1 juta di bawah

Program Tanggungjawab Sosial Korporat kami yang

dikenali sebagai Takaful myJalinan. Inisiatif CSR sebegini

telah membolehkan kami menghulur pelbagai bentuk

sumbangan sama ada kewangan mahu pun barangan

kepada pelbagai pertubuhan amal, pusat pendidikan

dan komuniti. Di samping itu, Syarikat juga mengagihkan

bayaran zakat kepada semua 14 jabatan agama negeri

berjumlah RM1.16 juta.

PENGIKTIRAFAN

Takaful Malaysia memperoleh anugerah penghargaan dan

pengiktirafan yang bermakna sepanjang tahun ini. Pada

bulan Februari 2013, kami telah diiktiraf sebagai Syarikat

Takaful Terbaik di Malaysia di majlis penyampaian

anugerah International Takaful Awards ketujuh yang

berlangsung di Kaherah. Anugerah ini merupakan

pengiktirafan kecemerlangan khusus kepada industri

Takaful, penampilan kualiti terunggul yang meletakkan

Takaful Malaysia di kedudukan berbeza berbanding para

pesaingnya.

Takaful Malaysia juga diberikan anugerah ‘Prestasi Saham

Terbaik’ di bawah Sektor Kewangan di majlis penyampaian

anugerah tahunan berprestij The Edge Billion Ringgit Club

Corporate Awards 2013 yang berlangsung pada bulan

September 2013. Kami berbangga kerana diiktiraf sebagai

Institusi Kewangan Islam yang pertama pernah memenangi

anugerah yang diberikan oleh The Edge Billion Ringgit Club

(BRC) Corporate Awards. Anugerah ini telah disampaikan

oleh yAB Dato’ Seri Mohd Najib Tun Abdul Razak, Perdana

Menteri Malaysia.

Penyata Pengerusi



In line with Malaysia’s mission to become an Islamic

Financial hub, the continuing growth of the Family Takaful

business is seen as the immediate insurance priority with

micro-takaful, medical and retirement products viewed as

the next steps for the industry. In addition, Motor and Fire

insurance are anticipated to continue to be the two biggest

contributions to the growth of the General Insurance

portfolio in the country. Employee Benefit schemes and

investment products are also projected to be in demand

and will have an increasing growth trend moving forward.

Islamic loan products that require appropriate risk

management is also an opportunity for the Takaful industry.

With the growth of Shariah-compliant loans in the market,

the use of Takaful as its risk transfer mechanism will also

grow concurrently. In 2014, the corporate and commercial

loans are expected to outpace the growth of retails loans.

Retail loans will be impacted by Bank Negara Malaysia’s

lending guidelines on retail loans and the introduction of

higher Real Property Gains Tax for 2014.

The enforcement of the Risk-Based Capital in 2014 will

eventually affect the landscape of the Takaful industry

moving forwards. Admittedly, there are certain areas of the

local Takaful industry where we project a muted earnings

growth outlook because of impact from investment de-

risking and financial market volatility. Nevertheless, in the

long run, the potential for growth and improved earnings

will emerge as continued robust economic growth, rising

household incomes and a finely tuned risk understanding

PROSPEK DAN MASA DEPAN

Industri Takaful di Malaysia telah berkembang dengan

pesat sejak beberapa tahun lepas. Berasaskan kepada

perkembangan positif ini, kami menjangka pertumbuhan

sektor Takaful akan kekal kukuh pada tahun 2014,

memandangkan prospek pertumbuhannya yang sihat dan

pengurusan risiko yang bertambah baik bakal meningkatkan

permintaan untuk Takaful di kalangan orang ramai.

Sejajar dengan misi Malaysia untuk menjadi hab Kewangan

Islam, pertumbuhan berterusan perniagaan Takaful Keluarga

dilihat sebagai keutamaan insurans yang serta-merta di

mana produk takaful-mikro, perubatan dan persaraan

adalah langkah berikutnya yang perlu dimanfaatkan oleh

industri. Di samping itu, insurans Motor dan Kebakaran pula

dijangka akan terus menjadi dua penyumbang terbesar

kepada pertumbuhan portfolio Insurans Am di negara ini.

Permintaan produk skim manfaat pekerja dan pelaburan

juga diunjur akan meningkat dan mencatatkan peningkatan

pertumbuhan pada masa hadapan.

Produk pinjaman Islam yang memerlukan pengurusan risiko

sewajarnya juga merupakan satu peluang terbuka kepada

industri Takaful. Pertumbuhan pinjaman yang mematuhi

hukum Syariah di pasaran, penggunaan Takaful sebagai

mekanisma permindahan risiko juga akan mencatatkan

pertumbuhan serentak. Pada tahun 2014, pinjaman korporat

dan komersial dijangka akan mengatasi pertumbuhan

pinjaman runcit. Pinjaman runcit akan terjejas daripada

garis panduan pinjaman Bank Negara Malaysia terhadap

Penyata Pengerusi



will drive greater premium growth for the foreseeable

outlook.

The Company must take into account the need to address

investment challenges as volatility in investment return will

affect their ability to meet both certificate holders’ and

shareholders’ expectations. The Company would also

be occupied with the necessary preparations due to the

impending implementation of the Goods and Services Tax

(GST) in 2015. The Company will invest to ensure system

readiness.

In a nutshell, the outlook for the local Takaful industry

for 2014 will continue to be positive and the industry is

anticipated to remain encouraging for both conventional

and Takaful operators through the introduction of new

and more innovative products by Takaful companies. The

local Takaful industry is projected to chalk up another year

of healthy growth next year as there is plenty of room

for organic growth, given the fact that Malaysia still has

relatively low insurance penetration in both conventional

and Takaful sectors.

pinjaman runcit serta pengenalan Cukai Keuntungan

Hartanah Sebenar yang lebih tinggi pada tahun 2014.

Penguatkuasaan Modal Berasaskan Risiko pada tahun

2014 akhirnya akan menjejaskan landskap industri Takaful

pada masa hadapan. Memang tidak dinafikan, terdapat

beberapa bidang dalam industri Takaful tempatan di mana

kami menjangka pertumbuhan pendapatannya pada masa

depan akan suram akibat kesan daripada penarikan risiko

pelaburan dan ketidaktentuan di pasaran kewangan. Walau

bagaimanapun, dalam jangkamasa panjang, pertumbuhan

dan peningkatan pendapatan masih berpotensi dicapai

kerana pertumbuhan mantap ekonomi secara berterusan,

kenaikan pendapatan isi rumah dan risiko yang telah

difahami lebih terperinci akan mendorong pertumbuhan

premium pada masa hadapan.

Syarikat perlu mengambil kira keperluan menangani pelbagai

cabaran kerana ketidaktentuan pulangan pelaburan akan

menjejaskan keupayaan mereka memenuhi jangkaan

pemegang sijil dan pemegang saham. Syarikat juga akan

sibuk dengan persediaan pelaksanaan Cukai Barangan dan

Perkhidmatan (GST) yang bakal berkuatkuasa pada tahun

2015. Justeru, Syarikat akan membuat pelaburan untuk

memastikan tahap kesediaan sistem.

Kesimpulannya, prospek bagi industri Takaful tempatan

pada tahun 2014 akan kekal positif dan industri ini

dijangka akan terus menggalakkan bagi pengendali

insurans konvensional dan Takaful melalui pengenalan

pelbagai produk baru dan lebih inovatif oleh syarikat-

Penyata Pengerusi



ACKNOWLEDGEMENTS

On behalf of the Board of Directors, I would like to express

my deepest appreciation to our management and staff

for your hard work and unwavering dedication. I would

also like to extend my appreciation to all our partners for

the support provided via our partnerships and also to our

valued shareholders and customers for the confidence you

have placed in us.

Finally, my sincere gratitude goes to my fellow members

of the Board, Board Committees and the Shariah Advisory

Body for their counsel, guidance and dynamic commitment

in providing excellent service to help propel the Company

to the best as it is now.

I am confident in our ability to consistently deliver our brand

promise of ‘We Protect. We Care. We Share’. Together, we

continue our successful journey for Takaful Malaysia to be

the preferred choice for insurance.


Chairman

syarikat Takaful. Industri Takaful tempatan dijangka akan

mencatatkan satu lagi pertumbuhan sihat pada tahun

hadapan kerana ruang pertumbuhan organik masih luas

terbuka memandangkan Malaysia secara relatif masih

mempunyai kadar penembusan insurans yang agak rendah,

baik dalam sektor konvensional mahupun Takaful.

PENGHARGAAN

Bagi pihak Lembaga Pengarah, saya ingin merakamkan

ucapan setinggi-tinggi penghargaan kepada pihak

pengurusan dan kakitangan di atas ketekunan dan

kesungguhan tidak berbelah bahagi yang anda sekalian

tunjukkan. Di samping itu, saya juga ingin menyampaikan

ribuan terima kasih kepada seluruh rakan perniagaan di atas

sokongan yang diberikan melalui hubungan perkongsian

dan juga kepada para pemegang saham serta pelanggan

yang sangat dihargai atas keyakinan yang diberikan kepada

kami.

Akhir sekali, penghargaan ikhlas daripada saya ini ditujukan

kepada rakan ahli Lembaga Pengarah, Jawatankuasa

Pengarah dan Badan Penasihat Syariah atas nasihat,

panduan dan komitmen mereka yang dinamik dalam

memberikan perkhidmatan cemerlang bagi membantu

melonjakkan pencapaian syarikat di kedudukan sedia ada.

Saya yakin dengan keupayaan kita menyampaikan secara

konsisten janji yang terkandung dalam jenama kita, ‘Kami

Lindungi. Kami Prihatin. Kami Berkongsi’. Bersama-sama,

kita meneruskan perjalanan ke arah kejayaan untuk

meletakkan Takaful Malaysia sebagai pilihan utama untuk

insurans.


Pengerusi

Penyata Pengerusi


FINANCIALSTATEMENTS072 Directors’ Report

077 Statement by Directors

078 Statutory Declaration

079 Independent Auditors’ Report

081 Report of the Shariah Advisory Body

083 Statements of Financial Position

085 StatementsofProfitorLossandOtherComprehensive Income

089 Statements of Changes In Equity

092 Statements of Cash Flows

094 Notes to the Financial Statements


The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 31 December 2013.

Principal activities

The Company is principally engaged in managing family and general takaful businesses, whilst the principal activities of the subsidiaries are as stated in Note 5 to the financial statements. There has been no significant change in the nature of these activities during the financial year.

Results Group Company RM’000 RM’000

Profit for the year attributable to: Owners of the Company 138,999 139,318 Non-controlling interests (4,619) -

134,380 139,318

Reserves and provisions

There were no material transfers to or from reserves and provisions during the financial year under review, except as disclosed in the financial statements.

Dividends

Since the end of the previous financial year, the Company:

i) Paid a second interim single tier dividend of 10 sen per ordinary share totalling RM16,281,700 in respect of the financial year ended 31 December 2012 on 11 January 2013;

ii) Declared a first interim single tier dividend of 12 sen per ordinary share totalling RM19,538,040 in respect of the financial year ended 31 December 2013 on 3 September 2013 and paid on 4 October 2013; and

iii) Declared a second interim single tier dividend of 30 sen per ordinary share totalling RM48,845,100 in respect of the financial year ended 31 December 2013 on 26 November 2013 and paid on 23 December 2013.

The final dividend recommended by the Directors in respect of the financial year ended 31 December 2013 is 40% single tier dividend per ordinary share totaling RM65,126,800.

Directors’ Reportfor the year ended 31 December 2013



Directors of the Company

Directors who served since the date of the last report are:

Dato’ Paduka Ismee IsmailDato’ Mohamed Hassan KamilDato’ Othman AbdullahDato’ Sulaiman Mohd Yusof Datuk Rozaida Omar Mahadzir AzizanJohan AbdullahZakaria Ismail

In accordance with Article 62 of the Company’s Articles of Association, Johan Abdullah, Dato’ Mohamed Hassan Kamil and Datuk Rozaida Omar will retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.

Directors’ interests in shares

None of the Directors holding office at 31 December 2013 had any interest in the shares and options over shares of the Company and of its related corporations during the financial year.

Issue of shares and debentures

There were no changes in the authorised, issued and paid-up capital of the Company during the financial year.

There were no debentures issued during the financial year.

Long Term Incentive Plan

At the Extraordinary General Meeting held on 24 July 2013, the Company’s shareholders approved the establishment of a Long Term Incentive Plan (LTIP), which comprises a Restricted Share Plan (RSP) and a Performance Share Plan (PSP), of not more than 10% of issued and paid-up share capital of the Company (excluding treasury shares) to eligible employees and executive director of the Company. The LTIP was effected on 20 August 2013 following the submission of the By-Laws for the LTIP to Bursa Malaysia Securities Berhad, the receipt of all required approvals and the compliance with the requirements pertaining to the LTIP.

The salient features of the LTIP are as disclosed in Note 16 to the financial statements.

As at the date of this Report, the shares granted under LTIP are as follow: Number of ordinary shares of RM1 each At At 1 January 31 December 2013 Granted Forfeited 2013

20 August 2013 - Restricted Share Plan - 607,100 - 607,100 - Performance Share Plan - 724,200 - 724,200

- 1,331,300 - 1,331,300


Options granted over unissued shares

No options were granted to any person to take up unissued shares of the Company during the financial year.

Directors’ benefits

Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements or the fixed salary of a full time employee of the Company or of related corporations) 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.

There were no arrangements during and at the end of the financial year which has the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate apart from the issue of the LTIP.

Statement on corporate governance and internal controls

(a) Board responsibilities

The Board of Directors (the Board) is ultimately responsible for the proper stewardship of the Group’s and Company’s resources, the achievement of corporate objectives and good corporate citizenship and discharges this responsibility through compliance with the Takaful Act, 1984 (repealed on 30 June 2013), Islamic Financial Services Act 2013 (effective on 30 June 2013) and Bank Negara Malaysia’s (BNM) Guidelines on Directorship for Takaful Operators (BNM/RH/GL 004-1) and other directives, in addition to adopting other best practices on corporate governance.

The Board comprises seven non-executive directors and one executive director to enable a balanced and objective consideration of issues, hence facilitating optimal decision making. The executive director adds value to the decision making process by providing a management and operational perspective to issues placed before the Board.

(b) Management accountability

The Group and the Company have an organisational structure showing all reporting lines as well as clearly documented job descriptions for all management and executive employees.

Authority limits, as approved by the Board, are clearly established and made available to all employees. (c) Corporate independence The Group and the Company have complied with BNM’s Guidelines on Related Party Transactions for Takaful Operators (BNM/RH/GL 004-7).

Necessary disclosures have been made to the Board and when required, prior Board’s approval has been obtained. All material related party transactions have been disclosed in Note 42 to the financial statements.



Statement on corporate governance and internal controls (continued)

(d) Internal controls and operational risk management

The Board has overall oversight responsibility to ensure the Group and the Company maintain an adequate system of internal controls, effective and efficient operations, and risk management, as well as procedures to ensure compliance with laws, regulations, internal guidelines and requirements to safeguard the assets of the Group and the Company and stakeholders’ interests.

The Group and the Company established the Operational Risk Management Framework to ensure an ongoing process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations.

All new Takaful products are governed by the Group’s and the Company’s Product Development Framework.

Whistle Blowing Policy & Fraud and Integrity Policy, Shariah Governance Framework and Assets and Liabilities Management Framework are also in place to provide basic structure and further strengthen the existing control mechanism underlying the business activities.

Business Continuity Management is consistently practiced and tested annually to safeguard the lives of the employees and others in the office premises and ensure the business is up and running at all times.

The Board, Group Managing Director and Management Committee are consciously committed to the risk culture and ensure Board Risk

Committee and Management Risk Committee perform as required.

(e) Public accountability

As custodian of public funds, the Group’s and the Company’s dealings with the public are always conducted fairly, honestly and professionally.

(f) Financial reporting

The Group and the Company have maintained proper accounting records and the Group’s and the Company’s financial statements are prepared in accordance with Malaysian Financial Reporting Standards (MFRS) issued by the Malaysian Accounting Standards Board (MASB), International Financial Reporting Standards (IFRS), the requirements of the Companies Act, 1965, the Takaful Act, 1984 (repealed on 30 June 2013), Islamic Financial Services Act 2013 (effective on 30 June 2013) and Takaful Guidelines / Circulars issued by BNM and Principles of Shariah.

Other statutory information

Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: i) all known impaired debts have been written off and adequate impairment allowance made for impaired debts, ii) any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which they might

be expected so to realise, and

iii) there was adequate provision for incurred claims, including Incurred But Not Reported (IBNR) claims.



Statement on corporate governance and internal controls (continued)

Other statutory information (continued)

At the date of this report, the Directors are not aware of any circumstances: i) that would render the amount written off for impaired debts or the amount of the allowance for impaired debts and provision for incurred claims

including IBNR claims in the Group and in the Company inadequate to any substantial extent, or ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or

iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or

iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group

and of the Company misleading. At the date of this report, there does not exist:

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

ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year.

No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due.

For the purpose of this paragraph, contingent and other liabilities do not include liabilities arising from contracts of takaful underwritten in the ordinary course of business of the Group and of the Company.

In the opinion of the Directors, the financial performance of the Group and of the Company for the financial year ended 31 December 2013 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of the financial year and the date of this report.

Auditors

The auditors, Messrs KPMG Desa Megat & Co., have indicated their willingness to accept re-appointment.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:


Dato’ Mohamed Hassan Kamil

Kuala Lumpur

Date: 14 March 2014



In the opinion of the Directors, the financial statements set out on pages 83 to 260 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia and comply with the Principles of Shariah so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December 2013 and of their financial performance and cash flows for the financial year then ended.

In the opinion of the Directors, the information set out in Note 44 on page 261 to the financial statements has been compiled in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:


Dato’ Mohamed Hassan Kamil Kuala Lumpur Date: 14 March 2014

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


I, Lee Hin Sze, the officer primarily responsible for the financial management of Syarikat Takaful Malaysia Berhad, do solemnly and sincerely declare that the financial statements set out on pages 83 to 261 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960. Subscribed and solemnly declared by the above named in Kuala Lumpur in the Federal Territory on 14 March 2014.

Lee Hin Sze

Before me:

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


Report on the Financial Statements

We have audited the financial statements of Syarikat Takaful Malaysia Berhad, which comprise the statements of financial position as at 31 December 2013 of the Group and of the Company, and the statements of profit or loss and other comprehensive income, changes in equity and cash flows of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 83 to 260.

Directors’ Responsibility for the Financial Statements

The Directors of the Company are responsible for the preparation of these financial statements so as to give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia. The Directors are also responsible for such internal controls as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Group and of the Company as of 31 December 2013 and of their financial performance and cash flows for the year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:

a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.

b) We have considered the accounts and the auditors’ reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 5 to the financial statements.

Independent Auditors’ Reportto the members of Syarikat Takaful Malaysia Berhad

(Company No. 131646-K)(Incorporated in Malaysia)


Report on Other Legal and Regulatory Requirements (continued)

c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes.

d) The audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act.

Other Reporting Responsibilities

Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The information set out in Note 44 on page 261 to the financial statements has been compiled by the Company as required by the Bursa Malaysia Securities Berhad Listing Requirements and is not required by the Malaysian Financial Reporting Standards or International Financial Reporting Standards. We have extended our audit procedures to report on the process of compilation of such information. In our opinion, the information has been properly compiled, in all material respects, in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.

Other Matters

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

KPMG Desa Megat & Co Mok Wan Kong Firm Number: AF 0759 Approval Number: 2877/12/14 (J) Chartered Accountants Chartered Accountant

Petaling Jaya, Selangor

Date: 14 March 2014

Independent Auditors’ Reportto the members of Syarikat Takaful Malaysia Berhad(Company No. 131646-K)(Incorporated in Malaysia)


In carrying out the roles and responsibilities of the Shariah Advisory Body of Syarikat Takaful Malaysia Berhad (Takaful Malaysia), we hereby submit our report for the financial year ended 31 December 2013:

The Management of Takaful Malaysia is responsible in ensuring that Takaful Malaysia conducts its business, operations and activities in accordance with the Shariah. It is our responsibility to form an independent opinion, based on our reviews of the operations of Takaful Malaysia.

We held six (6) meetings during the financial year ended 31 December 2013 in which we reviewed the principles and the contracts relating to the products and transactions introduced by Takaful Malaysia.

We also conducted our reviews as to whether the business, operations and activities of Takaful Malaysia are in compliance with the Shariah and the Shariah rulings as issued by the Shariah Advisory Council of Bank Negara Malaysia, as well as Shariah decisions made by us.

We assessed all matters presented by examining them on a test case basis, evaluating each type of transaction, its relevant documentation and procedures as adopted by Takaful Malaysia. Our assessments were planned in a way to ensure all the information and explanations considered necessary for Shariah compliance were obtained so that there were no violation.

In addition, we hereby report the following:

1. Throughout the financial year, we discussed and approved two (2) new products, two (2) new riders as well as deliberations on other issues in relation to Takaful products;

2. We also approved the Mudharabah (profit) and surplus distribution rate declarations for Family and General Takaful products;

3. Furthermore, we also approved several Shariah guidelines to be implemented by Takaful Malaysia to comply with the Islamic Financial Services Act (IFSA) 2013; and

4. We noted that Bank Negara Malaysia have issued a Circular on Shariah Non-Compliance Reporting to be adhered by all Islamic financial institutions. Pursuant to this, reports were sent to Bank Negara Malaysia on a monthly basis since May 2013 which served as a declaration or official attestation on the status of Shariah compliance of Takaful Malaysia.

Report of the Shariah Advisory Body


In our opinion:

1. The contracts, transactions and dealings entered into by Takaful Malaysia during the financial year ended 31 December 2013 were in compliance with the Shariah;

2. All investments were Shariah compliant;

3. The allocation of profits and losses charged in relation to investment accounts conformed to the Shariah;

4. Any Shariah non-compliance events occurred during the financial year were rectified accordingly and all earnings from sources or by means prohibited by the Shariah were considered for disposal to charitable causes; and

5. The calculation of zakat was in compliance with the Shariah.

We, the members of the Shariah Advisory Body of Takaful Malaysia, do hereby confirm that the operations of Takaful Malaysia for the financial year ended 31 December 2013 were conducted in conformity with the Shariah.

We bear witness only to what we know, and we could not well guard against the unseen! (surah Yusuf, verse: 81)

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

Member of the SAB : ………………………………Dato’ Mohd Bakir Hj. MansorKuala Lumpur,

Date: 14 March 2014

Report of the Shariah Advisory Body


<-------------------------------------------------------- Group ------------------------------------------------------> 2013 2012 Takaful Family General Takaful Family General Operator Takaful Takaful Group Operator Takaful Takaful Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

ASSETSProperty and equipment 3 24,308 - - 240,935 29,752 - - 241,064 Investment properties 4 16,604 216,003 23,740 39,720 18,194 212,813 25,774 45,470 Investment in associate 6 - - - - - - - - Other investments 7 484,169 3,642,815 605,251 4,694,140 394,213 3,485,015 601,339 4,439,587 Retakaful assets 8 - 183,463 452,470 635,933 - 82,527 354,776 437,303 Deferred tax assets 9 41,724 - - 41,724 34,382 - - 34,382 Loans and receivables, excluding takaful receivables 10 160,537 521,902 89,576 717,476 133,381 441,121 116,276 624,333 Takaful receivables 11 - 68,197 48,959 117,156 - 68,472 25,541 94,013 Qardh receivables 12 - - - - - - - - Cash and cash equivalents 13 89,171 265,736 75,712 430,619 102,972 288,172 61,108 452,252 Assets held for sale 14 1,730 2,260 2,850 6,840 1,340 1,360 540 3,240

TOTAL ASSETS 818,243 4,900,376 1,298,558 6,924,543 714,234 4,579,480 1,185,354 6,371,644

EQUITY AND LIABILITIESShare capital 15 162,817 - - 162,817 162,817 - - 162,817 Reserves 15 408,028 (23,028) (24,922) 409,257 336,513 (11,189) (23,394) 336,431

Total equity attributable to owners of the Company 570,845 (23,028) (24,922) 572,074 499,330 (11,189) (23,394) 499,248 Non-controlling interests 18,342 - - 17,825 26,328 - - 26,113

TOTAL EQUITY 589,187 (23,028) (24,922) 589,899 525,658 (11,189) (23,394) 525,361

LIABILITIESQardh payables 17 - 23,028 25,634 - - 10,398 23,888 - Takaful contract liabilities 18 - 4,750,730 1,181,016 5,893,651 - 4,403,336 1,100,743 5,463,099 Expense reserves 19 131,522 - - 131,522 89,486 - - 89,486 Takaful payables 20 - 25,859 49,569 75,428 - 20,501 22,625 43,126 Other payables 21 91,367 123,787 67,261 227,876 84,531 156,434 61,492 236,013 Current tax liabilities 6,167 - - 6,167 14,559 - - 14,559

TOTAL LIABILITIES 229,056 4,923,404 1,323,480 6,334,644 188,576 4,590,669 1,208,748 5,846,283

TOTAL EQUITY AND LIABILITIES 818,243 4,900,376 1,298,558 6,924,543 714,234 4,579,480 1,185,354 6,371,644

Statements of Financial Position as at 31 December 2013


<----------------------------------------------------- Company -----------------------------------------------------> 2013 2012 Takaful Family General Takaful Family General Operator Takaful Takaful Company Operator Takaful Takaful Company Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

ASSETS Property and equipment 3 13,955 - - 222,172 18,036 - - 221,405 Investment properties 4 15,520 207,525 23,740 38,568 17,250 204,824 25,774 44,479 Investments in subsidiaries 5 58,712 - - 58,712 63,729 - - 63,729 Investment in associate 6 - - - - - - - - Other investments 7 468,467 3,451,164 600,343 4,481,879 384,209 3,278,123 596,164 4,217,516 Retakaful assets 8 - 175,861 434,990 610,851 - 75,736 335,199 410,935 Deferred tax assets 9 40,279 - - 40,279 30,623 - - 30,623 Loans and receivables, excluding takaful receivables 10 134,751 495,498 75,538 667,840 111,789 425,074 105,444 587,945 Takaful receivables 11 - 62,835 40,511 103,346 - 62,893 17,605 80,498 Cash and cash equivalents 13 45,773 204,687 62,779 313,239 49,017 211,248 42,515 302,780 Assets held for sale 14 1,730 2,260 2,850 6,840 1,340 1,360 540 3,240

TOTAL ASSETS 779,187 4,599,830 1,240,751 6,543,726 675,993 4,259,258 1,123,241 5,963,150

EQUITY AND LIABILITIESShare capital 15 162,817 - - 162,817 162,817 - - 162,817 Reserves 15 416,444 - - 416,444 341,287 - - 341,287

Total equity attributable to owners of the Company 579,261 - - 579,261 504,104 - - 504,104

LIABILITIES Takaful contract liabilities 18 - 4,458,849 1,127,203 5,547,957 - 4,098,783 1,042,433 5,100,236 Expense reserves 19 127,279 - - 127,279 84,973 - - 84,973 Takaful payables 20 - 22,725 48,449 71,174 - 15,318 20,505 35,823 Other payables 21 66,866 118,256 65,099 212,274 72,680 145,157 60,303 223,778 Current tax liabilities 5,781 - - 5,781 14,236 - - 14,236

TOTAL LIABILITIES 199,926 4,599,830 1,240,751 5,964,465 171,889 4,259,258 1,123,241 5,459,046

TOTAL EQUITY AND LIABILITIES 779,187 4,599,830 1,240,751 6,543,726 675,993 4,259,258 1,123,241 5,963,150

The notes on pages 94 to 261 are an integral part of these financial statements.

Statements of Financial Positionas at 31 December 2013



Operating revenue 22 24,529 1,233,516 459,283 1,713,006 19,456 1,159,386 432,468 1,607,534

Takaful operator income 556,918 - - - 476,548 - - - Gross earned contributions 23(i) - 1,098,994 424,992 1,523,388 - 987,661 457,129 1,444,313 Contributions ceded to retakaful 23(ii) - (51,952) (132,969) (184,921) - (46,869) (121,955) (168,824)

Net earned contributions 23(iii) - 1,047,042 292,023 1,338,467 - 940,792 335,174 1,275,489

Administrative income - 1,022 29,932 30,954 - 187 23,158 23,345 Investment income 24 24,529 181,023 30,877 232,705 19,456 186,381 31,031 233,569 Realised gains and (losses) 25 11,816 117,092 15,844 144,597 9,699 98,082 13,508 121,289 Fair value gains and (losses) 26 (195) 9,025 596 9,676 845 10,634 (306) 8,591 Other operating income 27 11,951 1,133 1,798 5,483 10,852 6,587 5,675 16,543

Other income 48,101 309,295 79,047 423,415 40,852 301,871 73,066 403,337

Gross benefits and claims paid 28 - (607,451) (176,055) (769,419) - (484,087) (173,590) (654,024)Claims ceded to retakaful 28 - 47,009 32,834 79,843 - 29,475 26,523 55,998 Gross change to contract liabilities 28 - (46,995) (83,693) (130,688) - (46,333) (55,655) (101,988)Change to contract liabilities ceded to retakaful 28 - 16,687 92,416 109,103 - 10,758 30,169 40,927

Net benefits and claims 28 - (590,750) (134,498) (711,161) - (490,187) (172,553) (659,087)

Wakalah fee expense - (246,744) (146,055) - - (186,041) (94,226) - Commission expense / Administrative fees (130,270) (112) (201) (130,324) (103,297) (9,642) (9,532) (122,247)Expense reserves 19 (42,770) - - (42,770) (70,110) - - (70,110)Management expenses 29 (236,312) - - (234,131) (208,039) - - (205,721)Other operating expenses 31 (17,940) (8,796) (2,985) (18,229) (8,838) (12,722) (5,319) (23,689)

Other expenses (427,292) (255,652) (149,241) (425,454) (390,284) (208,405) (109,077) (421,767)

Total profit for the year 177,727 509,935 87,331 625,267 127,116 544,071 126,610 597,972 Profit attributable to the Takaful Operator / participants - (520,574) (87,155) (445,963) - (544,718) (131,231) (472,514)

Profit / (Loss) before zakat and taxation 177,727 (10,639) 176 179,304 127,116 (647) (4,621) 125,458 Zakat (1,517) - - (1,517) (1,000) - - (1,000)Tax expense 32 (43,261) - - (43,407) (24,526) - - (24,314)

Profit for the year 132,949 (10,639) 176 134,380 101,590 (647) (4,621) 100,144

Statements of Profit or Loss and Other Comprehensive Incomefor the year ended 31 December 2013



Profit for the year 132,949 (10,639) 176 134,380 101,590 (647) (4,621) 100,144

Other comprehensive income /(expense), net of taxItems that will not be reclassified subsequently to profit or lossRevaluation of property and equipment 2,379 - - 6,207 6,424 - - 13,510 Other comprehensive income attributable to participants - - - (4,265) - - - (6,222)

2,379 - - 1,942 6,424 - - 7,288

Items that may be reclassified subsequently to profit or lossFair value change of available-for-sale financial assets 1,882 (99,503) (6,909) 1,882 2,905 (13,384) 1,084 2,905 Foreign currency translation differences for foreign operations (7,314) (1,000) (2,861) (7,299) (6,321) 17 1,476 (6,036)Other comprehensive income attributable to participants - 99,303 8,066 - - 13,641 (2,259) -

(5,432) (1,200) (1,704) (5,417) (3,416) 274 301 (3,131)

Total other comprehensive income / (expense) for the year 33 (3,053) (1,200) (1,704) (3,475) 3,008 274 301 4,157

Total comprehensive income for the year 129,896 (11,839) (1,528) 130,905 104,598 (373) (4,320) 104,301

Profit / (Loss) for the year attributable to: Owners of the Company 137,265 (10,639) 176 138,999 102,476 (647) (4,621) 101,245 Non-controlling interests (4,316) - - (4,619) (886) - - (1,101)

132,949 (10,639) 176 134,380 101,590 (647) (4,621) 100,144

Total comprehensive income / (expense) for the year attributable to: Owners of the Company 137,882 (11,839) (1,528) 139,193 105,739 (373) (4,320) 105,657 Non-controlling interests (7,986) - - (8,288) (1,141) - - (1,356)

129,896 (11,839) (1,528) 130,905 104,598 (373) (4,320) 104,301

Basic earnings per ordinary share (sen) 34 85.37 62.18 Diluted earnings per ordinary share (sen) 34 84.83 62.2





Operating revenue 22 21,669 1,103,000 416,459 1,537,381 17,000 1,013,929 379,711 1,407,489

Takaful operator income 500,584 - - - 415,046 - - - Gross earned contributions 23(i) - 978,839 385,875 1,364,116 - 862,722 397,259 1,259,504 Contributions ceded to retakaful 23(ii) - (41,004) (126,471) (167,475) - (33,244) (112,989) (146,233)

Net earned contributions 23(iii) - 937,835 259,404 1,196,641 - 829,478 284,270 1,113,271

Administrative income - 1,022 29,325 30,347 - 187 22,401 22,588 Investment income 24 21,669 170,831 29,824 219,175 17,000 165,218 30,164 209,708 Realised gains and (losses) 25 11,029 108,016 15,641 134,531 9,047 92,909 13,358 115,314 Fair value gains and (losses) 26 - 11,808 596 14,530 840 10,256 (306) 8,796 Other operating income 27 6,982 1,096 1,267 2,590 7,141 5,514 4,953 11,037

Other income 39,680 292,773 76,653 401,173 34,028 274,084 70,570 367,443

Gross benefits and claims paid 28 - (540,752) (157,328) (686,637) - (415,977) (153,229) (565,553)Claims ceded to retakaful 28 - 36,841 29,296 66,137 - 19,349 23,382 42,731 Gross change to contract liabilities 28 - (35,702) (87,902) (123,604) - (46,980) (68,108) (115,088)Change to contract liabilities ceded to retakaful 28 - 16,046 91,991 108,037 - 10,530 37,678 48,208

Net benefits and claims 28 - (523,567) (123,943) (636,067) - (433,078) (160,277) (589,702)

Wakalah fee expense - (216,795) (127,024) - - (155,362) (70,501) - Commission expense / Administrative fees (103,197) (112) (168) (103,218) (74,865) (9,642) (9,330) (93,613)Expense reserves 19 (42,306) - - (42,306) (69,215) - - (69,215)Management expenses 29 (201,787) - - (199,389) (171,234) - - (168,813)Other operating expenses 31 (11,275) (7,899) (2,898) (22,032) (5,091) (11,596) (3,732) (20,599)

Other expenses (358,565) (224,806) (130,090) (366,945) (320,405) (176,600) (83,563) (352,240)

Total profit for the year 181,699 482,235 82,024 594,802 128,669 493,884 111,000 538,772 Profit attributable to the Takaful Operator / participants - (482,235) (82,024) (412,520) - (493,884) (111,000) (410,952)

Profit before zakat and taxation 181,699 - - 182,282 128,669 - - 127,820 Zakat (1,268) - - (1,268) (789) - - (789)Tax expense 32 (41,550) - - (41,696) (24,586) - - (24,374)

Profit for the year 138,881 - - 139,318 103,294 - - 102,657




Profit for the year 138,881 - - 139,318 103,294 - - 102,657

Other comprehensive income / (expense), net of tax

Items that will not be reclassified subsequently to profit or lossRevaluation of property and equipment 126 - - 1,285 56 - - 5,654 Other comprehensive income attributable to participants - - - (1,596) - - - (4,961)

126 - - (311) 56 - - 693

Items that may be reclassified subsequently to profit or lossFair value change of available-for-sale financial assets 2,517 (89,750) (6,673) 2,517 2,815 (12,938) 1,021 2,815 Other comprehensive income attributable to participants - 89,750 6,673 - - 12,938 (1,021) -

2,517 - - 2,517 2,815 - - 2,815

Total other comprehensive income / (expense) for the year 33 2,643 - - 2,206 2,871 - - 3,508

Total comprehensive income for the year 141,524 - - 141,524 106,165 - - 106,165

Profit for the year attributable to: Owners of the Company 138,881 - - 139,318 103,294 - - 102,657

Total comprehensive income for the year attributable to: Owners of the Company 141,524 - - 141,524 106,165 - - 106,165




<------------------------------------------- Attributable to owners of the Company ----------------------------------->

<------------------------------------------ Non - distributable--------------------------------> Distributable

Non-

Share Share Translation Revaluation Fair value LTIP Retained controlling Total

capital premium reserve reserve reserve reserve earnings Total interests equity

Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2012 162,817 4,098 (5,894) 554 4,961 - 284,041 450,577 27,469 478,046

Revaluation of property

and equipment 33 - - - 4,486 - - - 4,486 2,802 7,288

Fair value of available-for-sale

financial assets 33 - - - - 2,866 - - 2,866 39 2,905

Foreign currency translation

differences for foreign

operations 33 - - (2,940) - - - - (2,940) (3,096) (6,036)

Other comprehensive

(expense) / income

for the year 33 - - (2,940) 4,486 2,866 - - 4,412 (255) 4,157

Profit / (Loss) for the year - - - - - - 101,245 101,245 (1,101) 100,144

Total comprehensive

(expense) / income

for the year - - (2,940) 4,486 2,866 - 101,245 105,657 (1,356) 104,301

Contributions by

and distributions to

owners of the Company

- Dividends to owners

of the Company 35 - - - - - - (56,986) (56,986) - (56,986)

Total transactions

with owners

of the Company - - - - - - (56,986) (56,986) - (56,986)

At 31 December 2012 162,817 4,098 (8,834) 5,040 7,827 - 328,300 499,248 26,113 525,361

Note 15 Note 15 Note 15 Note 15 Note 15 Note 15

Statements of Changes in Equityfor the year ended 31 December 2013


<------------------------------------------- Attributable to owners of the Company ----------------------------------->

<------------------------------------------ Non - distributable--------------------------------> Distributable

Non-

Share Share Translation Revaluation Fair value LTIP Retained controlling Total

capital premium reserve reserve reserve reserve earnings Total interests equity

Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2013 162,817 4,098 (8,834) 5,040 7,827 - 328,330 499,248 26,113 525,361

Revaluation of property

and equipment 33 - - - 376 - - 575 951 991 1,942

Fair value of available-

for-sale financial assets 33 - - - - 2,073 - - 2,073 (191) 1,882

Foreign currency

translation differences

for foreign operations 33 - - (2,830) - - - - (2,830) (4,469) (7,299)

Other comprehensive

(expense) / income

for the year 33 - - (2,830) 376 2,073 - 575 194 (3,669) (3,475)

Profit / (Loss) for the year - - - - - - 138,999 138,999 (4,619) 134,380

Total comprehensive

(expense) / income

for the year - - (2,830) 376 2,073 - 139,574 139,193 (8,288) 130,905

Contributions by and

distributions to

owners of the Company

- Share-based payment

transactions 16 - - - - - 2,016 - 2,016 - 2,016

- Dividends to owners

of the Company 35 - - - - - - (68,383) (68,383) - (68,383)

Total transactions

with owners

of the Company - - - - - 2,016 (68,383) (66,367) - (66,367)

At 31 December 2013 162,817 4,098 (11,664) 5,416 9,900 2,016 399,491 572,074 17,825 589,899





<-------------------------------------- Attributable to owners of the Company ----------------------------------->

<----------------------------------- Non - distributable --------------------------------> Distributable

Share Share Revaluation Fair value LTIP Retained Total

capital premium reserve reserve reserve earnings equity

Company Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2012 162,817 4,098 554 4,889 - 282,567 454,925

Revaluation of property and equipment 33 - - 693 - - - 693

Fair value of available-for-sale financial assets 33 - - - 2,815 - - 2,815

Other comprehensive income for the year 33 - - 693 2,815 - - 3,508

Profit for the year - - - - - 102,657 102,657

Total comprehensive income for the year - - 693 2,815 - 102,657 106,165

Contributions by and distributions to owners

of the Company

- Dividends to owners of the Company 35 - - - - - (56,986) (56,986)

Total transactions with owners of the Company - - - - - (56,986) (56,986)

At 31 December 2012 / 1 January 2013 162,817 4,098 1,247 7,704 - 328,238 504,104

Revaluation of property and equipment 33 - - (311) - - - (311)

Fair value of available-for-sale financial assets 33 - - - 2,517 - - 2,517

Other comprehensive income for the year 33 - - (311) 2,517 - - 2,206

Profit for the year - - - - - 139,318 139,318

Total comprehensive income for the year - - (311) 2,517 - 139,318 141,524

Contributions by and distributions to owners

of the Company

- Share-based payment transactions 16 - - - - 2,016 - 2,016

- Dividends to owners of the Company 35 - - - - - (68,383) (68,383)

Total transactions with owners of the Company - - - - 2,016 (68,383) (66,367)

At 31 December 2013 162,817 4,098 936 10,221 2,016 399,173 579,261





Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

Cash flows from operating activities Profit before zakat and taxation 179,304 125,458 182,282 127,820Adjustments for: Depreciation 13,574 15,161 11,241 13,059 Equity settled share-based payment 2,016 - 2,016 - Fair value change of investment properties (6,101) (2,257) (5,754) (2,315) Fair value change of fair value through profit or loss financial assets (3,575) (6,334) (8,776) (6,481) Profit from financing receivables (3,630) (651) (3,630) (651) Profit from Islamic debt securities, investment accounts and Islamic accepted bills (179,160) (171,578) (165,697) (147,563) Dividend income from Shariah approved shares (30,001) (34,522) (29,724) (34,522) Gains on disposal of available-for-sale financial assets (144,886) (121,202) (135,064) (115,260) Gains on disposal of property and equipment (391) (159) (147) (126) Losses on disposal of assets held for sale 680 72 680 72 Write off of property and equipment 51 46 37 46 Amortisation of premiums, net of accretion of discounts 8,938 7,047 8,692 6,864 Impairment loss of financial assets 2,247 8,304 1,508 8,304 Impairment loss of investment properties 6 26 - 26 Impairment loss of investment in a subsidiary - - 5,017 - Impairment loss of property and equipment - 848 - 479 Profit from Malaysian Government Islamic papers (27,180) (29,350) (27,180) (29,350)

Operating loss before changes in working capital (188,108) (209,091) (164,499) (179,598)

Profit from Islamic debt securities, investment accounts, Islamic accepted bills and profit from Malaysian Government Islamic papers 206,340 200,928 192,877 176,913 Dividend income from Shariah approved shares 16,085 34,522 15,808 34,522 Increase in retakaful assets (202,981) (25,035) (199,916) (31,033) (Increase) / Decrease in receivables (118,103) 282,365 (99,113) 250,249 Increase in Takaful contract liabilities 590,575 431,557 546,284 388,028 Increase in payables 86,136 65,378 82,215 72,544

389,944 780,624 373,656 711,625 Zakat paid (1,225) (446) (1,048) (224) Income taxes paid (60,500) (41,119) (60,500) (41,176)

Net cash generated from operating activities 328,219 739,059 312,108 670,225

Statements of Cash Flowsfor the year ended 31 December 2013



Cash flows from operating activities Purchase of investments (3,211,437) (2,594,661) (3,079,041) (2,443,851) Proceeds from sale of investments 2,756,813 1,927,213 2,662,651 1,834,267 Maturity of other investments 207,160 52,151 202,634 40,000 Purchase of property and equipment (7,522) (7,474) (6,589) (6,887) Proceeds from sale of property and equipment 1,673 202 251 135 Proceeds from sale of assets held for sale 3,110 596 3,110 596

Net cash used in investing activities (250,203) (621,973) (216,984) (575,740)

Cash flows from financing activity Dividends paid to owners of the Company (84,665) (40,704) (84,665) (40,704)

Net cash used in financing activity (84,665) (40,704) (84,665) (40,704)

Net (decrease) / increase in cash and cash equivalents (6,649) 76,382 10,459 53,781Effect of exchange rate fluctuations on cash held (14,984) (10,657) - -Cash and cash equivalents at 1 January 452,252 386,527 302,780 248,999

Cash and cash equivalents at 31 December 430,619 452,252 313,239 302,780

Cash and cash equivalents

Cash and cash equivalents included in the statements of cash flows comprise the following statements of financial position amounts:


Cash and bank balances and fixed and call deposits with licensed financial institution with maturity less than three months - Takaful Operator (Note 13) 89,171 102,972 45,773 49,017 - Family Takaful Fund (Note 13) 265,736 288,172 204,687 211,248 - General Takaful Fund (Note 13) 75,712 61,108 62,779 42,515

430,619 452,252 313,239 302,780


Statements of Cash Flowsfor the year ended 31 December 2013


Syarikat Takaful Malaysia Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad. The address of the principal place of business and registered office of the Company is as follows:

26th Floor, Annexe Block Menara Takaful Malaysia No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur

The consolidated financial statements of the Company as at and for the financial year ended 31 December 2013 comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associates. The financial statements of the Company as at and for the financial year ended 31 December 2013 do not include other entities.

The Company is principally engaged in managing family and general takaful businesses, whilst the principal activities of the subsidiaries are as stated in Note 5 to the financial statements. There has been no significant change in the nature of these activities during the financial year.

The immediate holding company during the financial year is BIMB Holdings Berhad, a company incorporated in Malaysia and listed on the Main Market of Bursa Malaysia Securities Berhad. The ultimate holding corporation of the Company during the financial year is Lembaga Tabung Haji, a statutory body established under the Tabung Haji Act 1995 (Act 535).

The financial statements were authorised for issue by the Board of Directors on 14 March 2014. 1. Basis of preparation

(a) Statement of compliance

The financial statements of the Group and the Company have been prepared in accordance with Malaysian Financial Reporting Standards (MFRSs), International Financial Reporting Standards, the Companies Act, 1965, the Takaful Act, 1984 (repealed on 30 June 2013), Islamic Financial Services Act 2013 (effective on 30 June 2013), Takaful Guidelines / Circulars issued by Bank Negara Malaysia (BNM) and Principles of Shariah.

A Takaful Operator is required to present consolidated financial statements for itself and the Takaful funds it manages and controls in accordance with the requirements of MFRS 127, Consolidated and Separate Financial Statements. The statements of financial position and the statements of profit or loss and other comprehensive income of the Takaful Operator, Family Takaful Fund and General Takaful Fund are supplementary financial information presented in accordance with the requirements of BNM, Takaful Act, 1984 (repealed on 30 June 2013) and Islamic Financial Services Act 2013 (effective on 30 June 2013) in Malaysia to segregate assets, liabilities, income and expenses of Takaful funds from its own. The statements of financial position and profit or loss and other comprehensive income of the Takaful Operator include only assets, liabilities, income and expenses of the Takaful Operator, excluding the Takaful funds managed by it. The statements of financial position and profit or loss and other comprehensive income of the Family and General Takaful Fund include only the assets, liabilities, income and expenses of the family solidarity fund and General Takaful Fund that is set up, managed and controlled by the Takaful Operator.

Notes to the Financial Statements


1. Basis of preparation (continued)

(a) Statement of compliance (continued)

The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board (MASB) but have not been adopted by the Group and the Company:

MFRSs, Interpretations and Amendments effective for annual periods beginning on or after 1 January 2014• AmendmentstoMFRS10,Consolidated Financial Statements: Investment Entities • AmendmentstoMFRS12,Disclosure of Interests in Other Entities: Investment Entities • AmendmentstoMFRS127,Separate Financial Statements (2011): Investment Entities • AmendmentstoMFRS132,Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities• AmendmentstoMFRS136,Impairment of Assets - Recoverable Amount Disclosures for Non-Financial Assets• Amendments to MFRS 139, Financial Instruments: Recognition and Measurement - Novation of Derivatives and Continuation of Hedge

Accounting • ICInterpretation21,Levies

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 July 2014• AmendmentstoMFRS1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements 2011-2013 Cycle) • AmendmentstoMFRS2,Share-based Payment (Annual Improvements 2010-2012 Cycle) • AmendmentstoMFRS3,Business Combinations (Annual Improvements 2010-2012 Cycle and 2011-2013 Cycle)• AmendmentstoMFRS8,Operating Segments (Annual Improvements 2010-2012 Cycle) • AmendmentstoMFRS13, Fair Value Measurement (Annual Improvements 2010-2012 Cycle and 2011-2013 Cycle)• AmendmentstoMFRS116,Property, Plant and Equipment (Annual Improvements 2010-2012 Cycle)• AmendmentstoMFRS119,Employee Benefits – Defined Benefit Plans: Employee Contributions• AmendmentstoMFRS124,Related Party Disclosures (Annual Improvements 2010-2012 Cycle)• AmendmentstoMFRS138,Intangible Assets (Annual Improvements 2010-2012 Cycle)• AmendmentstoMFRS140,Investment Property (Annual Improvements 2011-2013 Cycle)

MFRSs, Interpretations and Amendments effective for a date yet to be confirmed• MFRS9,Financial Instruments (2009)• MFRS9,Financial Instruments (2010)• MFRS9,Financial Instruments – Hedge Accounting and Amendments to MFRS 9, MFRS 7 and MFRS 139• AmendmentstoMFRS7,Financial Instruments: Disclosure - Mandatory Effective Date of MFRS 9 and Transition Disclosures

The Group and the Company plan to apply the abovementioned standards, amendments and interpretations:

• fromtheannualperiodbeginningon1January2014forthoseaccountingstandards,amendmentsorinterpretationsthatareeffectivefor annual periods beginning on or after 1 January 2014.

• fromtheannualperiodbeginningon1January2015forthoseaccountingstandards,amendmentsorinterpretationsthatareeffectivefor annual periods beginning on or after 1 July 2014.

The initial application of the abovementioned amendments and interpretation are not expected to have any material impacts to the financial statements of the Group and the Company except as mentioned below:

MFRS 9, Financial InstrumentsMFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification and measurement of financial assets and financial liabilities, and on hedge accounting.

The Group is currently assessing the financial impact that may arise from the adoption of MFRS 9.



1. Basis of preparation (continued)

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis other than as disclosed in Note 2.

(c) Functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the nearest thousand, unless otherwise stated.

(d) Use of estimates and judgements

The preparation of financial statements in conformity with MFRS which requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes:

• Note2(f)andNote4–Investmentproperties• Note2(c)andNote39–Financialinstruments• Note2(n),(o)andNote19-Computationofexpensereserves• Note2(m),(n),Note8andNote18–ProvisionforoutstandingclaimsincludingIBNRclaims,FamilyTakafulFundsandactuarialreserves

2. Summary of significant accounting policies

The accounting policies set out below have been applied consistently to the periods presented in these financial statements, and have been applied consistently by Group entities, unless otherwise stated.

(a) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities, including unincorporated entities, controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

The Group adopted MFRS 10, Consolidated Financial Statements in the current financial year. This resulted in changes to the following policies:

• ControlexistswhentheGroupisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeentityandhastheabilityto affect those returns through its power over the entity. In the previous financial years, control exists when the Group has the ability to exercise its power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

• Potentialvotingrightsareconsideredwhenassessingcontrolonlywhensuchrightsaresubstantive.Inthepreviousfinancialyears, potential voting rights are considered when assessing control when such rights are presently exercisable.



2. Summary of significant accounting policies (continued)

(a) Basis of consolidation (continued)

(i) Subsidiaries (continued)

• TheGroupconsidersithasde facto power over an investee when, despite not having the majority of voting rights, it has the current ability to direct the activities of the investee that significantly affect the investee’s return. In the previous financial years, the Group did not consider de facto power in its assessment of control.

The change in accounting policy has been made retrospectively and in accordance with the transitional provision of MFRS 10. The adoption of MFRS 10 has no significant impact to the financial statements of the Group.

Investments in subsidiaries are measured in the Company’s statement of financial position at cost less any impairment losses, unless the investment is classified as held for sale or distribution. The cost of investments includes transaction costs.

(ii) Business combinations

Business combinations are accounted for using the acquisition method from the acquisition date, which is the date on which control is transferred to the Group.

The Group measures the cost of goodwill at the acquisition date as:

• thefairvalueoftheconsiderationtransferred;plus• therecognisedamountofanynon-controllinginterestsintheacquiree;plus• ifthebusinesscombinationisachievedinstages,thefairvalueoftheexistingequityinterestintheacquiree;less• thenetrecognisedamount(generallyfairvalue)oftheidentifiableassetsacquiredandliabilitiesassumed.

When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.

For each business combination, the Group elects whether it measures the non-controlling interests in the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net asset at the acquisition date.

Transaction costs, other than those associated with the issue of Islamic debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred.

(iii) Acquisition of non-controlling interests

The Group treats all changes in its ownership interest in a subsidiary that do not result in a loss of control as equity transactions between the Group and its non-controlling interest holders. Any difference between the Group’s share of net assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves.

(iv) Loss of control

Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the former subsidiary, any non-controlling interests and the other components of equity related to the former subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the former subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity accounted investee or as an available-for-sale financial asset depending on the level of influence retained.




(a) Basis of consolidation (continued) (v) Associates

Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies.

Investments in associates are accounted for in the consolidated financial statements using the equity method less any impairment losses, unless it is classified as held for sale or distribution. The cost of the investment includes transaction costs. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the associate, after adjustments if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases.

When the Group’s share of losses exceeds its interest in an associate, the carrying amount of that interest including any long-term investments is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the associate.

When the Group ceases to have significant influence over an associate, any retained interest in the former associate at the date when significant influence is lost is measured at fair value and this amount is regarded as the initial carrying amount of a financial asset. The difference between the fair value of any retained interest plus proceeds from the interest disposed of and the carrying amount of the investment at the date when equity method is discontinued is recognised in profit or loss.

When the Group’s interest in an associate decreases but does not result in a loss of significant influence, any retained interest is not re-measured. Any gain or loss arising from the decrease in interest is recognised in profit or loss. Any gains or losses previously recognised in other comprehensive income are also reclassified proportionately to profit or loss if that gain or loss would be required to be reclasified to profit or loss on the disposal of the related assets or liabilities.

Investments in associates are measured in the Company’s statement of financial position at cost less any impairment losses, unless the investment is classified as held for sale or distribution. The cost of investments includes transaction costs.

(vi) Non-controlling interests

Non-controlling interests at the end of the reporting period, being the equity in a subsidiary not attributable directly or indirectly to the equity holders of the Company, are presented in the consolidated statement of financial position and statement of changes in equity within equity, separately from equity attributable to the owners of the Company. Non-controlling interests in the results of the Group is presented in the consolidated statement of profit or loss and other comprehensive income as an allocation of the profit or loss and the comprehensive income for the year between non-controlling interests and the owners of the Company.

Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.




(a) Basis of consolidation (continued)

(vii) Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Unrealised gains arising from transactions with associates are eliminated against the investment to the extent of the Group’s interest in the associates. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

(b) Foreign currency (i) Foreign currency transactions

Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date.

Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the reporting date, except for those that are measured at fair value that are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.

Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of available-for-sale equity instruments, which are recognised in other comprehensive income.

(ii) Operations denominated in functional currencies other than Ringgit Malaysia

The assets and liabilities of operations denominated in functional currencies other than RM and fair value adjustments arising on acquisition, are translated to RM at exchange rates at the end of the reporting period. The income and expenses of foreign operations are translated to RM at exchange rates at the dates of the transactions.

Foreign currency differences are recognised in other comprehensive income and accumulated in the foreign currency translation reserve (FCTR) in equity. However, if the operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the FCTR related to that foreign operation is reclassified to profit or loss as part of the profit or loss on disposal.

When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.





(c) Financial instruments (i) Initial recognition and measurement

A financial asset or a financial liability is recognised in the statement of financial position when, and only when, the Group or the Company becomes a party to the contractual provisions of the instrument.

A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.

An embedded derivative is recognised separately from the host contract and accounted for as a derivative if, and only if, it is not closely related to the economic characteristics and risks of the host contract and the host contract is not categorised as fair value through profit or loss. The host contract, in the event an embedded derivative is recognised separately, is accounted for in accordance with policy applicable to the nature of the host contract.

(ii) Financial instrument categories and subsequent measurement

The Group and the Company categorise financial instruments as follows:

Financial assets (a) Financial assets at fair value through profit or loss

Fair value through profit or loss category comprises financial assets that are held for trading, including derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial assets that are specifically designated into this category upon initial recognition.

Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot be reliably measured are measured at cost.

Other financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss.

(b) Held-to-maturity investments

Held-to-maturity investments category comprises Islamic debt instruments that are quoted in an active market and the Group or the Company has the positive intention and ability to hold them to maturity.

Financial assets categorised as held-to-maturity investments are subsequently measured at amortised cost using the effective interest method.




(c) Financial instruments (continued)

(ii) Financial instrument categories and subsequent measurement (continued)

Financial assets (continued)

(c) Loans and receivables

Loans and receivables category comprises Islamic debt instruments that are not quoted in an active market (including fixed deposits with financial institutions with maturities more than 3 months).

Financial assets categorised as loans and receivables are subsequently measured at amortised cost using the effective interest method.

(d) Available-for-sale financial assets

Available-for-sale category comprises investment in equity and Islamic debt securities instruments that are not held for trading nor held to maturity.

Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost. Other financial assets categorised as available-for-sale are subsequently measured at their fair values with the gain or loss recognised in other comprehensive income, except for impairment losses, foreign exchange gains and losses arising from monetary items and gains and losses of hedged items attributable to hedge risks of fair value hedges which are recognised in profit or loss. On derecognition, the cumulative gain or loss recognised in other comprehensive income is reclassified from equity into profit or loss. Profit income calculated for an Islamic debt instrument using the effective interest method is recognised in profit or loss.

(e) Takaful receivables

Takaful receivables are recognised when due and measured on initial recognition at the fair value of the consideration receivable. Subsequent to initial recognition, takaful receivables are measured at amortised cost, using the effective interest method.

All financial assets, except for those measured at fair value through profit or loss, are subject to review for impairment (see Note 2(i)(i) and (ii)).

Financial liabilities

All financial liabilities are initially measured at fair value and subsequently measured at amortised cost other than those categorised as fair value through profit or loss.

Fair value through profit or loss category comprises financial liabilities that are derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial liabilities that are specifically designated into this category upon initial recognition.

Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot be reliably measured are measured at cost. Financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss.




(c) Financial instruments (continued) (iii) Regular way purchase or sale of financial assets

A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

A regular way purchase or sale of financial assets is recognised and derecognised, as applicable, using trade date accounting. Trade date accounting refers to:

(a) the recognition of an asset to be received and the liability to pay for it on the trade date, and

(b) derecognition of an asset that is sold, recognition of any gain or loss on disposal and the recognition of a receivable from the buyer for payment on the trade date.

(iv) Derecognition

A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss.

A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

(d) Property and equipment

(i) Recognition and measurement

The land and buildings are stated at cost / valuation less any accumulated depreciation and any accumulated impairment losses. Items of equipment are measured at cost less any accumulated depreciation and any accumulated impairment losses. The Group and the Company revalue their land and buldings annually and at shorter intervals whenever the fair values of the revalued assets are expected to differ materially from their carrying value. Addition subsequent to their revaluation are stated in the financial statements at cost until the next revaluation exercise. An external independent valuation company, having the appropriate recognised professional qualifications, values the Group’s land and buildings on annual basis. The revalued amounts are based on market value, being the estimated amount for which a property could be exchanged between a willing buyer and a willing seller in an arm’s length transaction.




(d) Property and equipment (continued)

(i) Recognition and measurement (continued)

Surpluses arising from revaluation are dealt with in the revaluation reserve account. Any deficit arising is offset against the revaluation reserve to the extent any previous surpluses recognised for the same property. In all other cases, a decrease in carrying amount is charged to profit or loss.

Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When significant parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment.

The gain or loss on disposal of an item of property and equipment is determined by comparing the proceeds from disposal with the carrying amount of property and equipment and is recognised net within “realised gains and losses” in profit or loss.

(ii) Subsequent costs

The cost of replacing a component of an item of property and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the component will flow to the Group or the Company, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised to profit or loss. The costs of the day-to-day servicing of property and equipment are recognised in profit or loss as incurred.

(iii) Depreciation

Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed, and if a component has a useful life that is different from the remainder of that asset, then that component is depreciated separately.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property and equipment under construction are not depreciated until the assets are ready for their intended use.




(d) Property and equipment (continued)

(iii) Depreciation (continued)

The annual depreciation rates for the current and comparative periods are as follows: Buildings 2.0% Renovation 16.7% Furniture, fixtures and fittings 16.7% - 20.0% Motor vehicles 20.0% Computer and equipment 20.0% - 33.3%

The depreciable amount is determined after deducting the residual value.

Depreciation methods, useful lives and residual values are reviewed at end of the reporting period, and adjusted as appropriate.

(e) Leased assets

(i) Finance lease

Leases in terms of which the Group or the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of profit on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed.

Leasehold land which in substance is a finance lease is classified as property and equipment.

(ii) Operating lease

Leases, where the Group or the Company does not assume substantially all the risks and rewards of ownership are classified as operating leases and, except for property interest held under operating lease, the leased assets are not recognised on the Group’s or the Company’s statement of financial position. Property interest held under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as investment property and measured using fair value model.

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of the lease. Contingent rentals are charged to profit or loss in the reporting period in which they are incurred.

Leasehold land which in substance is an operating lease is classified as prepaid lease payments.




(f) Investment property

(i) Investment property carried at fair value

Investment properties are properties which are owned or held under a leasehold interest to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of services or for administrative purposes.

Investment properties are measured initially at cost and subsequently at fair value with any change therein recognised in profit or loss for the period in which they arise.

Cost includes expenditure that is directly attributable to the acquisition of the investment property.

An investment property is derecognised on its disposal, or when it is permanently withdrawn from use and no future economic benefits are expected from its disposal. The difference between the net disposal proceeds and the carrying amount is recognised in profit or loss in the period in which the item is derecognised.

(ii) Reclassifications to / from investment property carried at fair value

When an item of property and equipment is transferred to investment property following a change in its use, any difference arising at the date of transfer between the carrying amount of the item immediately prior to transfer and its fair value is recognised directly in equity as a revaluation of property and equipment. However, if a fair value gain reverses a previous impairment loss, the gain is recognised in profit or loss. Upon disposal of an investment property, any surplus previously recorded in equity is transferred to retained earnings; the transfer is not made through profit or loss.

When the use of a property changes such that it is reclassified as property and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting.

(iii) Determination of fair value

An external, independent valuation firm, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, values the Group’s and the Company’s investment property portfolio annually.

The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably.

(g) Non-current assets held for sale

Non-current assets, or disposal groups comprising assets and liabilities that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale.

Immediately before classification as held for sale, the assets, or components of a disposal group, are remeasured in accordance with the Group’s accounting policies. Thereafter, generally the assets, or disposal group are measured at the lower of their carrying amount and fair value less costs to sell.




(g) Non-current assets held for sale (continued)

Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on pro-rata basis, except that no loss is allocated to financial assets, deferred tax assets and investment property, which continue to be measured in accordance with the Group’s accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss.

Intangible assets and property and equipment once classified as held for sale are not amortised or depreciated. In addition, equity accounting of equity accounted investees ceases once classified as held for sale.

(h) Cash and cash equivalents and placements with financial institutions

Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid investments which have an insignificant risk of changes in fair value with original maturities of three months or less, and are used by the Group and the Company in the management of their short term commitments. For the purpose of the statement of cash flows, cash and cash equivalents are presented net of bank overdrafts and pledged deposits.

(i) Impairment

(i) Financial assets, excluding takaful receivables

All financial assets (except for financial assets categorised as fair value through profit or loss, investments in subsidiaries and investment in associate) are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised. For an investment in an equity instrument, a significant or prolonged decline in the fair value below its cost is an objective evidence of impairment. If any such objective evidence exists, then the financial asset’s recoverable amount is estimated.

An impairment loss in respect of loans and receivables (excluding takaful receivables where the policy is set out in Note 2(i)(ii) below) and held-to-maturity investments is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective profit rate. The carrying amount of the asset is reduced through the use of an allowance account.

An impairment loss in respect of available-for-sale financial assets is recognised in profit or loss and is measured as the difference between the asset’s acquisition cost (net of any principal repayment and amortisation) and the asset’s current fair value, less any impairment loss previously recognised. Where a decline in the fair value of an available-for-sale financial asset has been recognised in other comprehensive income, the cumulative loss in other comprehensive income is reclassified from equity to profit or loss.

An impairment loss in respect of unquoted equity instrument that is carried at cost is recognised in profit or loss and is measured as the difference between the financial asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset.

Impairment losses recognised in profit or loss for an investment in an equity instrument classified as available-for-sale is not reversed through profit or loss.




(i) Impairment (continued)

(i) Financial assets, excluding takaful receivables (continued)

If, in a subsequent period, the fair value of an Islamic debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not exceed what the carrying amount would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in profit or loss.

(ii) Takaful receivables

If there is objective evidence that the takaful receivable is impaired, the Group and the Company reduce the carrying amount of the takaful receivable accordingly and recognises that impairment loss in profit or loss. The Group and the Company gather the objective evidence that a takaful receivable is impaired using the same process adopted for financial assets carried at amortised cost. The impairment loss is calculated under the same method used for those financial assets. These processes are described in Note 2(i)(i).

(iii) Other assets

The carrying amounts of other assets (except for deferred tax asset and investment property measured at fair value and non-current assets classified as held for sale) are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units. Subjects to an operating segment ceiling test, for the purpose of goodwill impairment testing, cash-generating units to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to group of cash-generating units that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash-generating unit.

An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the other assets in the cash-generating unit (groups of cash-generating units) on a pro-rata basis.




(i) Impairment (continued)

(iii) Other assets (continued)

Impairment losses recognised in prior periods are assessed at the end of each reporting period for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognised.

(j) Equity instruments

Instruments classified as equity are measured at cost on initial recognition and are not remeasured subsequently.

(i) Ordinary shares

Ordinary shares are classified as equity.

(ii) Distributions of assets to owners of the Company

The Group measures a liability to distribute assets as a dividend to the owners of the Company at the fair value of the assets to be distributed. The carrying amount of the dividend is remeasured at each reporting period and at the settlement date, with any changes recognised directly in equity as adjustments to the amount of the distribution. On settlement of the transaction, the Group recognises the difference, if any, between the carrying amount of the assets distributed and the carrying amount of the liability in profit or loss.

(k) Employee benefits

(i) Short-term employee benefits

Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group and the Company have a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(ii) State plans

The Group’s and the Company’s contribution to the statutory pension fund is charged to profit or loss in the financial year to which they relate. Once the contributions have been paid, the Group and the Company have no further payment obligations.




(k) Employee benefits (continued)

(iii) Share-based payment transactions

The grant date fair value of share-based payment granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

The fair value of the employee share options is measured using Monte Carlo Simulation. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), expected dividends, and the risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value.

(l) Provisions

A provision is recognised if, as a result of a past event, the Group and the Company have a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

(m) General Takaful Fund

The General Takaful Fund is maintained in accordance with the Takaful Act, 1984 (repealed on 30 June 2013) and Islamic Financial Services Act 2013 (effective on 30 June 2013). Included in General Takaful Fund are funds arising from:

• GeneralTakaful;and• Generalretakafulfunds.

The General Takaful underwriting results are determined for each class of takaful business after taking into account retakaful, unearned contributions, claims incurred and administrative fees.

Contribution income

Contributions are recognised in a financial period in respect of risks assumed during that particular financial period based on the inception date. Inward treaty retakaful contributions are recognised on the basis of periodic advices received from ceding takaful operators.




(m) General Takaful Fund (continued)

Unearned contribution reserves

The Unearned Contribution Reserves (UCR) represent the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial year.

In determining the UCR at the end of the reporting period, the method that most accurately reflects the actual unearned contributions is used, as follows:

a) 1/365th method for all General Takaful business. b) 1/8th method for all classes of General Treaty Inward Retakaful business.

Provision for outstanding claims

A liability for outstanding claims is recognised in respect of direct takaful business. The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries, if any, to settle the present obligation at the end of the reporting period. Any difference between the current estimated cost and subsequent settlement is dealt with in the takaful statement of profit or loss and other comprehensive income of the Group and of the Company in the year in which the settlement takes place.

Provision is also made for the cost of claims (together with related expenses) and Incurred But Not Reported Claims (IBNR) at the end of the reporting period, using a mathematical method of estimation by a qualified external actuary where historical claims experience are used to project future claims. The provision includes a risk margin for adverse deviation. As with all projections, there are elements of uncertainty and the projected claims may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions.

(n) Family Takaful Fund

Included in Family Takaful Fund are funds arising from:

• FamilyTakaful;• GroupFamilyTakaful;and• Familyretakafulfunds.

The Family Takaful Fund is maintained in accordance with the requirements of the Takaful Act, 1984 (repealed on 30 June 2013), Islamic Financial Services Act 2013 (effective on 30 June 2013) and includes the amounts attributable to participants which represents the participants’ share of the underwriting surplus and return on the investments, where applicable and are distributable in accordance with the terms and conditions prescribed by the Group and the Company.

The surplus transfer from the Family Takaful Fund to profit or loss is based on the predetermined profit sharing ratio of the underwriting surplus and return on investments.




(n) Family Takaful Fund (continued)

Contribution income

Contribution is recognised as soon as the amount of the contribution can be reliably measured. Initial contribution is recognised from inception date and subsequent contribution is recognised when it is due. For individual family takaful contribution, recognition is up to the extent of one due amount. At the end of each financial period, all due contributions are accounted for to the extent that they can be reliably measured.

Investment-linked business

Investments of the investment-linked business are stated at closing market prices. Any increase or decrease in value of these investments is taken into the investment-linked business revenue accounts. Actuarial reserves Actuarial reserves comprise the Prospective Actuarial Valuation, Cash Flow Projection Valuation and Unearned Contribution Valuation as explained below:

(i) Prospective Actuarial Valuation

For credit-related products, the liabilities of Family Takaful Fund shall be valued based on the sum of present value of future benefits and any expected future expenses payable from the takaful funds, less the present value of future gross tabarru’ arising from the certificate, discounted at the appropriate risk discount rate as defined in the valuation guidelines.

For a credit-related takaful certificate whose sustainability of tabarru’ deductions is dependant on the performance of the Participants Investment Fund (PIF), the calculation is subject to adjusting the future gross tabarru’ cash flow such that it is limited to the period where the PIF can sustain the tabarru’ and assuming that the takaful coverage is in force for the full duration of the takaful contract.

(ii) Cash Flow Projection Valuation

For products with PIF other than credit-related products, the liabilities shall be valued by projecting future cash flows to ensure that all future obligations can be met without recourse to additional finance or capital support at any future time during the duration of the certificate. The cash flow projection shall use a basis that is consistent with the requirements of the valuation guidelines.

(iii) Unearned Contribution Valuation

Yearly renewable products or extensions shall be valued according to the following:

(a) For a certificate covering death or survival, the liabilities shall be valued on an unexpired risk basis using a prospective estimate of expected future payments arising from future events covered as at the valuation date. These future payments shall include allowance for direct claims related expenses, direct investment-related expenses, cost of retakaful and expected future contribution refunds expected during the unexpired period.




(n) Family Takaful Fund (continued)

Actuarial reserves (continued)

(iii) Unearned Contribution Valuation (continued)

(b) For a certificate covering contingencies other than death or survival, the net liability is the maximum of unexpired risk reserve or unearned contribution reserve.

Provision for outstanding claims

Claims and provisions for claims arising on family and group family takaful certificates, including settlement costs, are accounted for using the case basis method and for this purpose, the benefits payable under a family takaful certificate are recognised as follows:

a) Maturity or other policy benefit payments due on specified dates are accounted for as claims payable on the due dates.

b) Death, surrender and other benefits without due dates are treated as claims payable on the date of receipts of intimation of death of the participant or occurrence of contingency covered.

c) For individual family, group health and medical business, provision is made for the cost of claims (together with related expenses) and IBNR at the end of the reporting period, using a mathematical method of estimation by a qualified internal actuary where historical claims experience are used to project future claims. The provision includes a risk margin for adverse deviation. As with all projections, there are elements of uncertainty and the projected claims may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claim settlement pattern as well as uncertainties in the projection model and underlying assumptions.

(o) Expense reserves

The expense reserves is reported as a liability in Takaful Operator’s Fund.

(i) General Takaful Fund

The expense reserve for mudharabah certificates is calculated based on best estimate of the provision for unexpired expense risk (UER) and the PRAD. The expense reserve for wakalah certificates refers to the higher of aggregate of the Unearned Wakalah Fee (UWF) for all lines of business or best estimate of the provision for UER and the PRAD at total fund level.

(ii) Family Takaful Fund

Expense reserves consists of the following:

(a) Expense liabilities

The method used to value expense liabilities shall be consistent with the method used to value takaful liabilities of the corresponding family takaful certificate (for example, for a long-term ordinary takaful certificate, the valuation method for expense liabilities should also be long-term in nature).




(o) Expense reserves (continued)

(ii) Family Takaful Fund (continued)

(b) Deficiency Reserve for Skim Anuiti Takaful KWSP

In addition to the expense liabilities above, an additional requirement is also complied as stipulated below:

If Participant Investment Fund (PIF) is expected to be insufficient to meet future annuity certain benefit and / or future life annuity tabarru’, another provision shall be set aside that is in line with requirement of the valuation guideline. Upon PIF insufficiency, the Operator’s Fund shall honour the annuity certain benefit payment to participants as well as the tabarru’ to PRF.

(p) Product classification

The Family Takaful Fund and General Takaful Fund consist of certificate contracts that transfer takaful risk.

Takaful contracts are those contracts that transfer significant takaful risk. A takaful contract is a contract under which the fund has accepted significant takaful risk from another party (the certificate holders) by agreeing to compensate the participants if a specified uncertain future event (the takaful event) adversely affects the participants. As a general guideline, to determine whether a contract has significant takaful risk, benefits paid are compared with benefits payable if the takaful event did not occur.

Investment contracts are those contracts that do not transfer significant insurance risk. There are no contracts that are classified as investment contracts in the Family and General Takaful Funds.

Once a contract has been classified as a takaful contract, it remains a takaful contract for the remainder of its life-time, even if the takaful risk reduces significantly during this period, unless all rights and obligations are extinguished or expired.

Takaful contracts in the current portfolio are classified as being without discretionary participation features (DPF) as it does not satisfy the criteria for DPF. DPF is a contractual right to receive, as a supplement to guaranteed benefits, additional benefits that are:

• likelytobeasignificantportionofthetotalcontractualbenefits;• whoseamountortimingiscontractuallyatthediscretionoftheissuer;and• thatarecontractuallybasedonthe:

- performance of a specified pool of contracts or a specified type of contract;- realised and / or unrealised investment returns on a specified pool of assets held by the issuer; or- the profit or loss of the company, fund or other entity that issues the contract.

(q) Retakaful

The funds cede takaful risk in the normal course of business. Retakaful assets represent balances receivable and recoverable from retakaful operators. Amounts recoverable from retakaful operators are estimated in a manner consistent with the outstanding claims provision or settled claims associated with the retakaful’s certificates and are in accordance with the related retakaful contracts.




(q) Retakaful (continued)

Ceded retakaful arrangements do not relieve the fund from its obligations to participants. Contributions and claims are presented on a gross basis for both ceded and assumed retakaful.

Retakaful assets are reviewed for impairment at each reporting date or more frequently when an indication of impairment arises during the reporting period. Impairment occurs when there is objective evidence as a result of an event that occurred after initial recognition of the retakaful asset that the Family and General Takaful Fund may not receive all outstanding amounts due under the terms of the contract and the event has a reliably measurable impact on the amounts that the Family and General Takaful Fund will receive from the retakaful operator. The impairment loss is recorded in profit or loss.

Gains or losses on buying retakaful, if any, are recognised in profit or loss immediately at the date of purchase and are not amortised.

The funds also assume retakaful risk in the normal course of business for Family Takaful and General Takaful contracts when applicable.

Contributions and claims on assumed retakaful are recognised as revenue or expenses in the same manner as they would be if the retakaful were considered direct business, taking into account the product classification of the retakaful business. Retakaful liabilities represent balances due to retakaful operators. Amounts payable are estimated in a manner consistent with the related retakaful contract.

Retakaful assets or liabilities are derecognised when the contractual rights are extinguished or expired or when the contract is transferred to another party.

Retakaful contracts that do not transfer significant takaful risk are accounted for directly through the statement of financial position. These are deposit assets or financial liabilities that are recognised based on the consideration paid or received less any explicit identified contributions or fees to be retained by the retakaful operators. Investment income on these contracts is accounted for using the effective yield method when accrued.

(r) Other revenue recognition

(i) Financing income

Income from financing is recognised on an accrual basis, except where financing is considered impaired, i.e. where repayments are in arrears for more than 90 days, in which case recognition of such income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid.

Income is recognised on a time proportion basis that takes into account the effective yield of the asset.

(ii) Wakalah fees

Wakalah fees are recognised as income or expenses by the respective funds based on a predetermined percentage of gross contributions upon inception of certificates. Wakalah surplus / (deficit) is arrived at after deducting commission and management expenses against the Wakalah fees charged.




(r) Other revenue recognition (continued)

(iii) Rental income

Rental is recognised on an accrual basis except where default in payment of rent has already occurred and rent dues remain outstanding for over 90 days, in which case recognition of rental income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid.

(iv) Dividend income

Dividend income is recognised in profit or loss on the date that the Group’s or the Company’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.

(s) Zakat

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

(t) Income tax expense

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the liability method, providing for temporary differences between the carrying amounts of assets and liabilities in the statement of financial position and their tax bases. Deferred tax is not recognised for the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(u) Operating lease payments

The Group recognises its Ijarah financing obligations as operating leases. Lease payments under the operating lease are recognised as an expense in profit or loss on a straight-line basis over the lease term.




(v) Earnings per share

The Group presents basic earnings per share (EPS) data for its ordinary shares.

Basic EPS is calculated by dividing the consolidated profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period, adjusted for own shares held.

Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options granted to employees.

(w) Operating segments

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

(x) Fair value measurements

From 1 January 2013, the Group and the Company adopted MFRS 13, Fair Value Measurement which prescribed that fair value of an asset or a liability, except for share-based payment and lease transactions, is determined as the price that would be recevied to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal market, in the most advantageous market.

For non-financial asset, the fair value measurement takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

In accordance with the transitional provision of MFRS 13, the Group and the Company applied the new fair value measurement guidance prospectively, and has not provided any comparative fair value information for new disclosures. The adoption of MFRS 13 has not significantly affected the measurements of the Group’s and the Company’s assets or liabilities other than the additional disclosures.



3. Property and equipment

Group Takaful Operator Office equipment, furniture, fixtures Freehold Leasehold Motor and Land Buildings Land Buildings vehicles fittings Total

Cost / Valuation RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2012 894 306 2,499 4,733 1,469 106,273 116,174 Additions - - - - 775 6,699 7,474 Disposals - - - - (258) (218) (476)Write offs - - - - - (2,183) (2,183)Revaluation 41 9 4,151 433 - - 4,634 Effect of movement in exchange rates - - (796) (475) (76) (940) (2,287)

At 31 December 2012 / 1 January 2013 935 315 5,854 4,691 1,910 109,631 123,336 Additions - - - - 465 4,358 4,823Disposals - - (812) (380) (429) (343) (1,964)Write offs - - - - - (4,513) (4,513)Revaluation 94 26 2,044 (844) - - 1,320Effect of movement in exchange rates - - (1,020) (578) (162) (1,525) (3,285)

At 31 December 2013 1,029 341 6,066 2,889 1,784 107,608 119,717



3. Property and equipment (continued)

Group Takaful Operator

Office equipment, furniture, fixtures Freehold Leasehold Motor and

Accumulated depreciation and Land Buildings Land Buildings vehicles fittings Total impairment loss Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2012 - - 906 1,007 955 85,011 87,879 Depreciation for the year 29 - 6 301 402 169 10,430 11,308 Impairment loss 31 - - - 197 - - 197 Disposals - - - - (227) (206) (433)Write offs - - - - - (2,137) (2,137)Adjustment for revaluation - (6) (1,207) (1,027) - - (2,240)Effect of movement in exchange rates - - - (107) (45) (838) (990)At 31 December 2012 / 1 January 2013Accumulated depreciation - - - 275 852 92,260 93,387 Accumulated impairment loss - - - 197 - - 197 - - - 472 852 92,260 93,584 Depreciation for the year 29 - 6 491 315 315 8,372 9,499Disposals - - (10) (4) (356) (312) (682)Write offs - - - - - (4,462) (4,462)Adjustment for revaluation - (6) (481) (572) - - (1,059)Effect of movement in exchange rates - - - (51) (75) (1,345) (1,471)At 31 December 2013Accumulated depreciation - - - - 736 94,513 95,249 Accumulated impairment loss - - - 160 - - 160 - - - 160 736 94,513 95,409

Carrying amountsAt 1 January 2012 894 306 1,593 3,726 514 21,262 28,295

At 31 December 2012 / 1 January 2013 935 315 5,854 4,219 1,058 17,371 29,752

At 31 December 2013 1,029 341 6,066 2,729 1,048 13,095 24,308




Group

Office equipment, furniture, fixtures Freehold Leasehold Motor and Land Buildings Land Buildings vehicles fittings Total

Cost / Valuation Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2012 48,990 130,238 17,976 20,793 1,469 106,273 325,739 Additions - - - - 775 6,699 7,474 Disposals - - - - (258) (218) (476)Write offs - - - - - (2,183) (2,183)Revaluation 296 895 3,376 3,300 - - 7,867 Effect of movement in exchange rates (14) (12) (824) (1,116) (76) (940) (2,982)

At 31 December 2012 / 1 January 2013 49,272 131,121 20,528 22,977 1,910 109,631 335,439 Additions - 2,699 - - 465 4,358 7,522Disposals - - (812) (380) (429) (343) (1,964)Write offs - - - - - (4,513) (4,513)Reclassified from investment properties 4 - 5,535 - - - - 5,535Reclassified to assets held for sale 14 - - (800) (460) - - (1,260)Revaluation 1,284 (4,541) 4,469 (139) - - 1,073Effect of movement in exchange rates (25) (21) (1,930) (1,062) (162) (1,525) (4,725)

At 31 December 2013 50,531 134,793 21,455 20,936 1,784 107,608 337,107




Group



At 1 January 2012 Accumulated depreciation - - 906 1,007 955 85,011 87,879 Accumulated impairment loss 26 17 43 54 - - 140 26 17 949 1,061 955 85,011 88,019 Charge for the year 29 - 2,604 301 1,657 169 10,430 15,161 Impairment loss 31 35 22 71 720 - - 848 Disposals - - - - (227) (206) (433)Write offs - - - - - (2,137) (2,137)Adjustment for revaluation - (2,604) (1,207) (2,282) - - (6,093)Effect of movement in exchange rates - - - (107) (45) (838) (990)At 31 December 2012 / 1 January 2013 Accumulated depreciation - - - 275 852 92,260 93,387 Accumulated impairment loss 61 39 114 774 - - 988 61 39 114 1,049 852 92,260 94,375 Charge for the year 29 - 2,787 1,139 961 315 8,372 13,574Impairment loss 31 - 6 - - - - 6Disposals - - (10) (4) (356) (312) (682)Write offs - - - - - (4,462) (4,462)Adjustment for revaluation - (2,787) (1,129) (1,218) - - (5,134)Effect of movement in exchange rates - (3) - (82) (75) (1,345) (1,505)At 31 December 2013 Accumulated depreciation - - - - 736 94,513 95,249 Accumulated impairment loss 61 42 114 706 - - 923 61 42 114 706 736 94,513 96,172

Carrying amounts At 1 January 2012 48,964 130,221 17,027 19,732 514 21,262 237,720

At 31 December 2012 / 1 January 2013 49,211 131,082 20,414 21,928 1,058 17,371 241,064

At 31 December 2013 50,470 134,751 21,341 20,230 1,048 13,095 240,935




Company Takaful Operator



At 1 January 2012 894 306 - - 522 94,134 95,856 Additions - - - - 567 6,320 6,887 Disposals - - - - (192) (214) (406)Write offs - - - - - (2,183) (2,183)Revaluation 41 9 - - - - 50

At 31 December 2012 / 1 January 2013 935 315 - - 897 98,057 100,204 Additions - - - - 174 3,716 3,890Disposals - - - - (329) (343) (672)Write offs - - - - - (2,867) (2,867)Revaluation 94 26 - - - - 120

At 31 December 2013 1,029 341 - - 742 98,563 100,675

Accumulated depreciation

At 1 January 2012 - - - - 388 74,386 74,774 Charge for the year 29 - 6 - - 123 9,805 9,934 Disposals - - - - (192) (205) (397)Write offs - - - - - (2,137) (2,137)Adjustment for revaluation - (6) - - - - (6)

At 31 December 2012 / 1 January 2013 - - - - 319 81,849 82,168 Charge for the year 29 - 6 - - 156 7,794 7,956 Disposals - - - - (256) (312) (568)Write offs - - - - - (2,830) (2,830)Adjustment for revaluation - (6) - - - - (6)

At 31 December 2013 - - - - 219 86,501 86,720

Carrying amountsAt 1 January 2012 894 306 - - 134 19,748 21,082

At 31 December 2012 / 1 January 2013 935 315 - - 578 16,208 18,036

At 31 December 2013 1,029 341 - - 523 12,062 13,955




Company



At 1 January 2012 48,827 130,085 9,194 14,598 522 94,134 297,360 Additions - - - - 567 6,320 6,887 Disposals - - - - (192) (214) (406)Write offs - - - - - (2,183) (2,183)Revaluation 288 898 861 476 - - 2,523

At 31 December 2012 / 1 January 2013 49,115 130,983 10,055 15,074 897 98,057 304,181 Additions - 2,699 - - 174 3,716 6,589Disposals - - - - (329) (343) (672)Write offs - - - - - (2,867) (2,867)Reclassified from investment properties 4 - 5,535 - - - - 5,535Reclassified to assets held for sale 14 - - (800) (460) - - (1,260)Revaluation 1,274 (4,538) 481 777 - - (2,006)

At 31 December 2013 50,389 134,679 9,736 15,391 742 98,563 309,500

Accumulated depreciation and impairment lossAt 1 January 2012Accumulated depreciation - - - - 388 74,386 74,774 Accumulated impairment loss 26 6 43 54 - - 129 26 6 43 54 388 74,386 74,903 Charge for the year 29 - 2,601 166 364 123 9,805 13,059 Impairment loss 31 34 22 71 352 - - 479 Disposals - - - - (192) (205) (397)Write offs - - - - - (2,137) (2,137)Adjustment for revaluation - (2,601) (166) (364) - - (3,131)At 31 December 2012Accumulated depreciation - - - - 319 81,849 82,168 Accumulated impairment loss 60 28 114 406 - - 608 60 28 114 406 319 81,849 82,776




Company



At 1 January 2013Accumulated depreciation - - - - 319 81,849 82,168 Accumulated impairment loss 60 28 114 406 - - 608 60 28 114 406 319 81,849 82,776 Charge for the year 29 - 2,784 172 335 156 7,794 11,241Disposals - - - - (256) (312) (568)Write offs - - - - - (2,830) (2,830)Adjustment for revaluation - (2,784) (172) (335) - - (3,291)At 31 December 2013Accumulated depreciation - - - - 219 86,501 86,720 Accumulated impairment loss 60 28 114 406 - - 608 60 28 114 406 219 86,501 87,328

Carrying amounts At 1 January 2012 48,801 130,079 9,151 14,544 134 19,748 222,457

At 31 December 2012 / 1 January 2013 49,055 130,955 9,941 14,668 578 16,208 221,405

At 31 December 2013 50,329 134,651 9,622 14,985 523 12,062 222,172

3.1 Revaluation of properties All the Group’s and Company’s land and buildings were revalued in December 2013 by independent professional qualified valuers using the comparison method.

Had the land and buildings of the Group and of the Company been carried at historical cost less accumulated depreciation, their carrying amounts would have been as follows:

Group Company Takaful Operator Group Takaful Operator Company 2013 2012 2013 2012 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Freehold land 487 487 43,846 43,877 487 487 43,705 43,705 Freehold buildings 137 142 94,569 96,898 137 142 94,504 96,820 Leasehold land and buildings 3,486 4,574 23,997 26,430 - - 19,029 19,893

4,110 5,203 162,412 167,205 624 629 157,238 160,418




3.2 Leasehold land and buildings

Included in the carrying amounts of the leasehold land and buildings are:

Group Company Takaful Operator Group Takaful Operator Company 2013 2012 2013 2012 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Leasehold land and buildings with unexpired lease period of - more than 50 years - - 17,277 17,279 - - 17,277 17,279 - less than 50 years 8,795 10,073 24,294 25,063 - - 7,330 7,330

8,795 10,073 41,571 42,342 - - 24,607 24,609

4. Investment properties

Takaful Operator Family Takaful General Takaful Group 2013 2012 2013 2012 2013 2012 2013 2012Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 18,194 18,758 212,813 210,619 25,774 26,620 45,470 46,572 Additions - - 2,479 - 220 - - -Reclassified to property and equipment 3 - - - - - - (5,535) -Reclassified to assets held for sale 14 (1,730) (1,340) (2,810) (1,360) (2,850) (540) (6,130) (3,240)Transfers - 17 - (17) - - - -Fair value gains / (losses) for the year - net 26 317 845 4,938 4,300 596 (306) 6,101 2,257 Impairment loss 31 - - - (26) - - - (26)Effect of movement in exchange rates (177) (86) (1,417) (703) - - (186) (93)

At 31 December 16,604 18,194 216,003 212,813 23,740 25,774 39,720 45,470

Comprising of:Freehold land and buildings 8,931 8,973 177,095 173,105 14,800 14,464 16,975 17,499Leasehold land and buildings more than 50 years 6,830 8,560 26,867 29,639 2,550 5,300 18,030 26,220 Leasehold land and buildings less than 50 years 843 661 12,041 10,069 6,390 6,010 4,715 1,751

16,604 18,194 216,003 212,813 23,740 25,774 39,720 45,470



4. Investment properties (continued)

The following are amounts arising from investment properties that have been recognised in profit or loss during the financial year.

Takaful Operator Family Takaful General Takaful Group 2013 2012 2013 2012 2013 2012 2013 2012Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Rental income 24 642 742 7,320 8,821 783 1,032 3,087 4,901

Takaful Operator Family Takaful General Takaful Company 2013 2012 2013 2012 2013 2012 2013 2012Company Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 17,250 17,750 204,824 202,435 25,774 26,620 44,479 45,430 Additions - - 2,479 - 220 - - - Reclassified to property and equipment 3 - - - - - - (5,535) -Reclassified to assets held for sale 14 (1,730) (1,340) (2,810) (1,360) (2,850) (540) (6,130) (3,240)Fair value gains / (losses) for the year - net 26 - 840 3,032 3,775 596 (306) 5,754 2,315Impairment loss 31 - - - (26) - - - (26)

At 31 December 15,520 17,250 207,525 204,824 23,740 25,774 38,568 44,479

Comprising of: Freehold land and buildings 8,690 8,690 177,095 173,105 14,800 14,464 16,975 17,499 Leasehold land and buildings more than 50 years 6,830 8,560 26,867 29,639 2,550 5,300 18,030 26,220 Leasehold land and buildings less than 50 years - - 3,563 2,080 6,390 6,010 3,563 760

15,520 17,250 207,525 204,824 23,740 25,774 38,568 44,479

The following are amounts arising from investment properties that have been recognised in profit or loss during the financial year.

Takaful Operator Family Takaful General Takaful Company 2013 2012 2013 2012 2013 2012 2013 2012Company Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Rental income 24 642 737 6,709 8,172 783 1,032 3,051 4,872




Investment properties comprise a number of commercial properties that are leased to third parties. During the financial year, four properties have been transferred to assets held for sale (see note 14).

Fair value information

Fair value of investment properties are categorised as follows:

Group Level 1 Level 2 Level 3 Total2013 RM’000 RM’000 RM’000 RM’000

Takaful OperatorFreehold land and buildings - - 8,931 8,931Leasehold land and buildings - more than 50 years - - 6,830 6,830 - less than 50 years - - 843 843

- - 16,604 16,604

Family Takaful Freehold land and buildings - - 177,095 177,095Leasehold land and buildings - more than 50 years - - 26,867 26,867 - less than 50 years - - 12,041 12,041

- - 216,003 216,003

General Takaful Freehold land and buildings - - 14,800 14,800Leasehold land and buildings - more than 50 years - - 2,550 2,550 - less than 50 years - - 6,390 6,390

- - 23,740 23,740

Group Freehold land and buildings - - 16,975 16,975Leasehold land and buildings - more than 50 years - - 18,030 18,030 - less than 50 years - - 4,715 4,715

- - 39,720 39,720




Fair value information (continued)

Company Level 1 Level 2 Level 3 Total2013 RM’000 RM’000 RM’000 RM’000

Takaful Operator Freehold land and buildings - - 8,690 8,690Leasehold land and buildings - more than 50 years - - 6,830 6,830

- - 15,520 15,520

Family Takaful Freehold land and buildings - - 177,095 177,095Leasehold land and buildings - more than 50 years - - 26,867 26,867 - less than 50 years - - 3,563 3,563

- - 207,525 207,525

General Takaful Freehold land and buildings - - 14,800 14,800 Leasehold land and buildings - more than 50 years - - 2,550 2,550 - less than 50 years - - 6,390 6,390

- - 23,740 23,740

Company Freehold land and buildings - - 16,975 16,975Leasehold land and buildings - more than 50 years - - 18,030 18,030 - less than 50 years - - 3,563 3,563

- - 38,568 38,568




Fair value information (continued)

Policy on transfer between levels

The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer.

Level 1 fair value

Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical investment properties that the entity can access at the measurement date.

Level 2 fair value

Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the investment property, either directly or indirectly.

Level 2 fair values of land and buildings have been generally derived using the sales comparison approach. Sales price of comparable properties in close proximity are adjusted for differences in key attributes such as property size. The most significant input into this valuation approach is price per square foot of comparable properties.

Transfer between Level 1 and 2 fair values

There is no transfer between Level 1 and 2 fair values during the financial year.

Level 3 fair value

Level 3 fair value is estimated using unobservable inputs for the investment property.

The following table shows a reconciliation of Level 3 fair values:

Takaful Family General operator Takaful Takaful Group 2013 2013 2013 2013Group Note RM’000 RM’000 RM’000 RM’000

At 1 January 18,194 212,813 25,774 45,470 Additions - 2,479 220 - Reclassified to property and equipment 3 - - - (5,535)Reclassified to assets held for sale 14 (1,730) (2,810) (2,850) (6,130)

Gains and losses recognised in profit or loss - Change in fair value - unrealised 26 317 4,938 596 6,101

Effect of movement in exchange rates (177) (1,417) - (186)

At 31 December 16,604 216,003 23,740 39,720



4. Investment properties (continued) Fair value information (continued)

The following table shows a reconciliation of Level 3 fair values (continued):

Takaful Family General Operator Takaful Takaful Company 2013 2013 2013 2013Company Note RM’000 RM’000 RM’000 RM’000

At 1 January 17,250 204,824 25,774 44,479 Additions - 2,479 220 - Reclassified to property and equipment 3 - - - (5,535)Reclassified to assets held for sale 14 (1,730) (2,810) (2,850) (6,130)

Gains and losses recognised in profit or loss - Change in fair value - unrealised 26 - 3,032 596 5,754

At 31 December 15,520 207,525 23,740 38,568

The following table shows the valuation techniques used in the determination of fair values within Level 3, as well as the significant unobservable inputs used in the valuation models.

Valuation technique Comparison method: The valuation method consider the sales and listing of comparable properties recorded in the area and adjustments are made between the subject properties and those similar properties. The adjustments are made in relation to location and accessibility, size and shape of the lot, physical features, legal and legislation constraints, building design and condition, supply and demand, building code and public restriction.

Significant unobservable inputs Adjustment rate based on the comparable of sales in the past that was analysed by the National Property Information Centre (NAPIC) under Valuation and Property Services Department, Ministry of Finance Malaysia.

Inter-relationship between significant unobservable inputs and fair value measurement The estimated fair value would increase (decrease) if:- the rate were higher or lower - the historical sales transaction were higher

or lower




Fair value information (continued) Valuation processes applied by the Group and the Company for Level 3 fair value

The Group’s and the Company’s investment properties were valued by independent professional valuer firms, using the comparison, cost and investment methods of valuations, where applicable.

In the comparison method approach, the sales and listings of comparable properties within nearby locations are compiled. From the compiled data, adjustments are made by the valuers between the subject property and those similar properties.

The adjustments made are in relation to location, size and shape of the lot, physical features, legal and legislative constraints, building design and condition, time element, planning provision, improvements and renovation works made, if any, surrounding developments, facilities and amenities available and other factors that may affect the value of the subject property. These adjustments are therefore subject to uncertainties such as property market outlook, potential increases in rental rates and general economic conditions.

In the cost method approach, the indication of values consists of the sum of the present worth of the improvement value.

For the valuation of the improvements, the valuers have considered the following:

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

ii) Accrued depreciation as evidenced by the observed condition and present and prospective serviceability in comparison with new units of like kind; and

iii) Extent, character and utility of the property. The investment method is the capitalisation of net rent from a property. Net rent is the residue of gross annual rent less annual expenses

(outgoings) required to sustain the rent with allowance for void and management fees.

During the year, the external valuers performed an update valuation of market value of these investment properties in arriving at the fair value, after considering the properties’ existing condition. In prior year, the external valuers have considered the results of all these three methods in their valuation and applied professional judgement in the selection of the fair value of these investment properties.



5. Investments in subsidiaries Company Takaful Operator/ Company 2013 2012 RM’000 RM’000

At cost Unquoted shares 80,759 80,759 Less: Accumulated impairment losses (22,047) (17,030)

58,712 63,729

Details of the subsidiaries are as follows:

Country of Effective ownership interestName of subsidiaries Principal activities incorporation 2013 2012

Asean Retakaful Family and General Malaysia 63.09% 63.09% International (L) retakaful business Ltd. (ARIL)**

P.T. Syarikat Takaful Investment holding Indonesia 56.00% 56.00% Indonesia and its subsidiaries*

P.T. Asuransi Takaful General Takaful Indonesia 64.70% 64.70% Umum* business

P.T. Asuransi Takaful Family Takaful Indonesia 74.80% 74.80% Keluarga* business

* Not audited by KPMG Desa Megat & Co** Members’ Voluntary Winding-up commenced on 21 May 2012. The subsidiary has been consolidated based on management accounts.

Non-controlling interests in subsidiaries

The Group’s subsidiaries that have non-controlling interests (NCI) are not material to the Group.



6. Investment in associate

Investment in associate company amounting to RM2,473,000 (2012: RM2,473,000) was fully impaired during the financial year ended 30 June 2007.

7. Other investments

The other investments comprise the following: Group Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

Takaful Operator Available-for-sale (AFS) (a) 475,590 391,994 468,467 384,209 Fair value through profit or loss (FVTPL) (b) 6,614 634 - - Held-to-maturity (HTM) (c) 1,965 1,585 - -

484,169 394,213 468,467 384,209

Family Takaful Available-for-sale (AFS) (a) 3,094,385 3,012,079 3,022,304 2,922,533 Fair value through profit or loss (FVTPL) (b) 181,689 219,665 67,506 113,682 Held-to-maturity (HTM) (c) 366,741 253,271 361,354 241,908

3,642,815 3,485,015 3,451,164 3,278,123

General Takaful Available-for-sale (AFS) (a) 569,349 565,764 567,669 563,442 Held-to-maturity (HTM) (c) 35,902 35,575 32,674 32,722

605,251 601,339 600,343 596,164

Group / CompanyAvailable-for-sale (AFS) (a) 4,101,229 3,928,857 4,020,345 3,829,204 Fair value through profit or loss (FVTPL) (b) 188,303 220,299 67,506 113,682 Held-to-maturity (HTM) (c) 404,608 290,431 394,028 274,630

4,694,140 4,439,587 4,481,879 4,217,516



7. Other investments (continued)

(a) AFS financial assets Group Company 2013 2012 2013 2012

At fair value RM’000 RM’000 RM’000 RM’000

Takaful OperatorEquity securities - Quoted in Malaysia 93,173 37,004 93,173 37,004 - Quoted outside Malaysia 508 - - - - Unquoted in Malaysia 380 380 380 380 - Unquoted outside Malaysia 36 43 - -

94,097 37,427 93,553 37,384

Unit trusts - Quoted in Malaysia 23,303 24,844 23,303 24,844 - Quoted outside Malaysia 5,712 6,730 - -

29,015 31,574 23,303 24,844

Institutional Trust Account 64,268 61,270 64,268 61,270

Malaysian Government Islamic papers 10,013 20,155 10,013 20,155

Islamic debt securities - Quoted outside Malaysia 867 - - - - Unquoted in Malaysia 239,235 199,576 239,235 199,576 - Unquoted outside Malaysia - 1,012 - -

240,102 200,588 239,235 199,576

Investment in linked funds 38,095 40,980 38,095 40,980

475,590 391,994 468,467 384,209 Family TakafulEquity securities - Quoted in Malaysia 704,490 394,295 704,490 394,295 - Quoted outside Malaysia 34 52 - -

704,524 394,347 704,490 394,295


149,568 111,844 83,133 31,955



Islamic debt securities - Quoted outside Malaysia 4,267 - - - - Unquoted in Malaysia 1,654,367 1,758,563 1,654,367 1,758,563 - Unquoted outside Malaysia 1,345 9,605 - -

1,659,979 1,768,168 1,654,367 1,758,563

3,094,385 3,012,079 3,022,304 2,922,533




(a) AFS financial assets (continued)

Group Company 2013 2012 2013 2012


General TakafulEquity securities - Quoted in Malaysia 133,234 85,161 133,234 85,161


22,554 13,257 20,874 10,935



Islamic debt securities - Unquoted in Malaysia 313,528 337,051 313,528 337,051

569,349 565,764 567,669 563,442

Group / CompanyEquity securities - Quoted in Malaysia 930,897 516,460 930,897 516,460 - Quoted outside Malaysia 542 52 - - - Unquoted in Malaysia 380 380 380 380 - Unquoted outside Malaysia 36 43 - -

931,855 516,935 931,277 516,840


201,137 156,675 127,310 67,734



Islamic debt securities - Quoted outside Malaysia 5,134 - - - - Unquoted in Malaysia 2,207,130 2,295,190 2,207,130 2,295,190 - Unquoted outside Malaysia 1,345 10,617 - -

2,213,609 2,305,807 2,207,130 2,295,190

4,101,229 3,928,857 4,020,345 3,829,204




(b) FVTPL financial assets

Group Company 2013 2012 2013 2012


Takaful OperatorEquity securities - Quoted outside Malaysia 2,573 - - -

Islamic debt securities - Quoted outside Malaysia 4,041 - - - - Unquoted outside Malaysia - 634 - -

4,041 634 - -

6,614 634 - -

Family TakafulEquity securities - Quoted in Malaysia 51,239 39,753 51,239 39,753 - Quoted outside Malaysia 27,010 32,330 - -

78,249 72,083 51,239 39,753

Investment units in commodity, equity and fixed income closed end fund - Unquoted in Malaysia - 59,662 - 59,662

Unit trusts - Quoted outside Malaysia 18,451 29,580 - -

Islamic debt securities - Quoted outside Malaysia 68,722 - - - - Unquoted in Malaysia 16,267 14,267 16,267 14,267 - Unquoted outside Malaysia - 44,073 - -

84,989 58,340 16,267 14,267

181,689 219,665 67,506 113,682




(b) FVTPL financial assets (continued)

Group Company 2013 2012 2013 2012


Group / CompanyEquity securities - Quoted in Malaysia 51,239 39,753 51,239 39,753 - Quoted outside Malaysia 29,583 32,330 - -

80,822 72,083 51,239 39,753

Investment units in commodity, equity and fixed income closed end fund - Unquoted in Malaysia - 59,662 - 59,662

Unit trusts - Quoted outside Malaysia 18,451 29,580 - -

Islamic debt securities - Quoted outside Malaysia 72,763 - - - - Unquoted in Malaysia 16,267 14,267 16,267 14,267 - Unquoted outside Malaysia - 44,707 - -

89,030 58,974 16,267 14,267

188,303 220,299 67,506 113,682

(c) HTM financial assets

Group Company 2013 2012 2013 2012

At amortised cost RM’000 RM’000 RM’000 RM’000

Takaful OperatorIslamic debt securities - Quoted outside Malaysia 1,965 1,585 - -

Family TakafulIslamic debt securities - Quoted outside Malaysia 5,387 11,363 - - - Unquoted in Malaysia 248,637 129,127 248,637 129,127

254,024 140,490 248,637 129,127


366,741 253,271 361,354 241,908




(c) HTM financial assets (continued)

Group Company 2013 2012 2013 2012

At amortised cost RM’000 RM’000 RM’000 RM’000

General TakafulIslamic debt securities - Quoted outside Malaysia 3,228 2,853 - - Malaysian Government Islamic papers 32,674 32,722 32,674 32,722

35,902 35,575 32,674 32,722

Group / Company Islamic debt securities - Quoted outside Malaysia 10,580 15,801 - - - Unquoted in Malaysia 248,637 129,127 248,637 129,127

259,217 144,928 248,637 129,127


404,608 290,431 394,028 274,630

At fair value

Takaful Operator Islamic debt securities - Quoted outside Malaysia 1,944 1,598 - -

Family TakafulIslamic debt securities - Quoted outside Malaysia 5,338 11,563 - - - Unquoted in Malaysia 246,841 142,033 246,841 142,033

252,179 153,596 246,841 142,033


365,030 268,772 359,692 257,209

General TakafulIslamic debt securities - Quoted outside Malaysia 3,169 2,937 - - Malaysian Government Islamic papers 32,778 33,351 32,778 33,351

35,947 36,288 32,778 33,351

Group / Company Islamic debt securities - Quoted outside Malaysia 10,451 16,098 - - - Unquoted in Malaysia 246,841 142,033 246,841 142,033

257,292 158,131 246,841 142,033


402,921 306,658 392,470 290,560




(d) Carrying values of financial instruments

AFS FVTPL HTM Group Note RM’000 RM’000 RM’000 RM’000

At 1 January 2012 3,254,122 174,392 309,579 3,738,093 Purchases 2,490,821 94,162 9,678 2,594,661 Maturities (40,799) (1,500) (9,852) (52,151)Disposals (1,743,679) (45,925) (16,407) (1,806,011)Fair value gains / (losses) recorded in: Profit or loss 26 - 6,334 - 6,334 Other comprehensive income 39.2 3,844 - - 3,844 Participants’ fund (12,300) - - (12,300)Allowance for impairment in financial assets 31 (8,304) - - (8,304)Amortisation of premiums, net of accretion of discounts (6,824) - (223) (7,047)Effect of movement in exchange rates (8,024) (7,164) (2,344) (17,532)

At 31 December 2012 / 1 January 2013 3,928,857 220,299 290,431 4,439,587 Purchases 2,951,239 138,913 121,285 3,211,437Maturities (142,032) (60,602) (4,526) (207,160)Disposals (2,517,880) (94,047) - (2,611,927) Dividend capitalised 13,916 - - 13,916Fair value gains / (losses) recorded in: Profit or loss 26 - 3,575 - 3,575 Other comprehensive income 39.2 2,721 - - 2,721 Participants’ fund (106,412) - - (106,412) Net asset value attributable to unitholders (3,881) - - (3,881)Allowance for impairment in financial assets 31 (2,037) - (210) (2,247) Amortisation of premiums, net of accretion of discounts (8,616) - (322) (8,938)Effect of movement in exchange rates (14,646) (19,835) (2,050) (36,531)

At 31 December 2013 4,101,229 188,303 404,608 4,694,140




(d) Carrying values of financial instruments (continued)

AFS FVTPL HTM Company Note RM’000 RM’000 RM’000 RM’000

At 1 January 2012 3,165,939 108,913 274,670 3,549,522 Purchases 2,422,920 20,931 - 2,443,851 Maturities (38,500) (1,500) - (40,000)Disposals (1,697,864) (21,143) - (1,719,007)Fair value gains / (losses) recorded in: Profit or loss 26 - 6,481 - 6,481 Other comprehensive income 39.2 3,754 - - 3,754 Participants’ fund (11,917) - - (11,917)Allowance for impairment in financial assets 31 (8,304) - - (8,304)Amortisation of premiums, net of accretion of discounts (6,824) - (40) (6,864)

At 31 December 2012 / 1 January 2013 3,829,204 113,682 274,630 4,217,516 Purchases 2,912,127 47,440 119,474 3,079,041 Maturities (142,032) (60,602) - (202,634) Disposals (2,485,797) (41,790) - (2,527,587) Dividend capitalised 13,916 - - 13,916Fair value gains / (losses) recorded in: Profit or loss 26 - 8,776 - 8,776 Other comprehensive income 39.2 3,356 - - 3,356 Participants’ fund (96,424) - - (96,424) Net assets value attributable to unitholders (3,881) - - (3,881)Allowance for impairment in financial assets 31 (1,508) - - (1,508) Amortisation of premiums, net of accretion of discounts (8,616) - (76) (8,692)

At 31 December 2013 4,020,345 67,506 394,028 4,481,879




(e) Fair values of financial instruments

Quoted market prices category are financial instruments that are measured in whole or in part by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange and published market price from print medias.

Market observable financial instruments are measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions and are instruments for which pricing is obtained from Bond Pricing Agency Malaysia and regulatory agency. The fair value of investments in structured products are obtained via investments bankers and / or fund managers.

Non-market observable inputs means that fair values are determined in whole or in part using a valuation technique based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. The main asset class in this category are unquoted equity securities and Institutional Trust Account.

The fair values of the unquoted equity securities were determined to approximate the carrying amount as these are immaterial in the context of the financial statements.

(f) Maturity of other investments

The following investments mature after 12 months:

Group Company 2013 2012 2013 2012

RM’000 RM’000 RM’000 RM’000

Takaful Operator AFS financial assets 249,845 210,727 249,248 209,672 FVTPL financial assets 4,041 634 - - HTM financial assets 1,944 1,585 - -

Family Takaful AFS financial assets 1,959,035 2,238,536 1,956,143 2,228,931 FVTPL financial assets 77,699 42,317 15,805 9,733 HTM financial assets 363,869 248,519 361,354 241,908

General Takaful AFS financial assets 370,388 388,298 370,388 385,976 HTM financial assets 35,303 35,575 32,674 32,722

Group / Company AFS financial assets 2,579,268 2,837,561 2,575,779 2,824,579 FVTPL financial assets 81,740 42,951 15,805 9,733 HTM financial assets 401,116 285,679 394,028 274,630



8. Retakaful assets Group Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

Family TakafulClaims liabilities 18(a) 35,123 18,671 33,621 17,575 Actuarial liabilities 18(c) 148,340 63,856 142,240 58,161

183,463 82,527 175,861 75,736

General TakafulClaims liabilities 18(a) 372,270 282,479 357,445 265,454 Contribution liabilities 18(b) 80,200 72,297 77,545 69,745

452,470 354,776 434,990 335,199

Group / CompanyClaims liabilities 18(a) 407,393 301,150 391,066 283,029 Contribution liabilities 18(b) 80,200 72,297 77,545 69,745 Actuarial liabilities 18(c) 148,340 63,856 142,240 58,161

635,933 437,303 610,851 410,935



9. Deferred tax assets / (liabilities) <------------------------------------------------------------- Group -----------------------------------------------------------> Assets Liabilities Net 2013 2012 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorProperty and equipment - - (359) (404) (359) (404)Investment properties - - (1,989) (1,992) (1,989) (1,992)Other investments - - (2,591) (321) (2,591) (321)Loans and receivables, excluding takaful receivables 411 630 - - 411 630 Takaful receivables 720 863 - - 720 863 Other payables 12,177 11,435 - - 12,177 11,435 Expense reserves 32,495 21,918 - - 32,495 21,918 Unabsorbed tax losses 860 2,253 - - 860 2,253

Tax assets / (liabilities) 46,663 37,099 (4,939) (2,717) 41,724 34,382 Set off of tax (4,939) (2,717) 4,939 2,717 - -

Net tax assets 41,724 34,382 - - 41,724 34,382

Group Property and equipment - - (425) (616) (425) (616)Investment properties - - (1,923) (1,780) (1,923) (1,780)Other investments - - (2,591) (321) (2,591) (321)Loans and receivables, excluding takaful receivables 411 630 - - 411 630 Takaful receivables 720 863 - - 720 863 Other payables 12,177 11,435 - - 12,177 11,435 Expense reserves 32,495 21,918 - - 32,495 21,918 Unabsorbed tax losses 860 2,253 - - 860 2,253


Net tax assets 41,724 34,382 - - 41,724 34,382



9. Deferred tax assets / (liabilities) (continued)

<----------------------------------------------------------- Company --------------------------------------------------------> Assets Liabilities Net 2013 2012 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorInvestment properties - - (1,989) (1,992) (1,989) (1,992)Investment in subsidiaries 3,384 2,130 - - 3,384 2,130 Other investments - - (2,755) (321) (2,755) (321)Loans and receivables, excluding takaful receivables 321 383 - - 321 383 Takaful receivables 704 863 - - 704 863 Other payables 8,794 8,317 - - 8,794 8,317 Expense reserves 31,820 21,243 - - 31,820 21,243


Net tax assets 40,279 30,623 - - 40,279 30,623

Company Property and equipment - - (66) (212) (66) (212)Investment properties - - (1,923) (1,780) (1,923) (1,780)Investment in subsidiaries 3,384 2,130 - - 3,384 2,130 Other investments - - (2,755) (321) (2,755) (321)Loans and receivables, excluding takaful receivables 321 383 - - 321 383 Takaful receivables 704 863 - - 704 863 Other payables 8,794 8,317 - - 8,794 8,317 Expense reserves 31,820 21,243 - - 31,820 21,243


Net tax assets 40,279 30,623 - - 40,279 30,623



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10. Loans and receivables, excluding takaful receivables

Group Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

Takaful OperatorFinancing receivables Secured financing 21 284 - 216 Unsecured financing 325 538 325 538 Staff financing 5,230 7,250 4,015 5,509 Allowance for impairment (1,245) (1,253) (1,026) (1,253)

4,331 6,819 3,314 5,010

Fixed and call deposits with licensed financial institutions with maturity more than three months Licensed banks in Malaysia 98,731 49,378 85,737 49,378 Banks outside Malaysia 4,037 5,252 - -

102,768 54,630 85,737 49,378

Other receivables Investment receivable 5,043 10,994 5,043 10,994 Sundry deposits 350 347 350 347 Due from Family Takaful Fund 21 25,661 34,390 25,661 27,761 Due from General Takaful Fund 21 9,746 14,161 9,746 13,970 Prepayment 5,465 5,210 4,148 3,602 Sundry receivables 7,173 6,830 752 727

53,438 71,932 45,700 57,401

160,537 133,381 134,751 111,789

Family TakafulFinancing receivables Secured financing 70,301 70,625 70,301 70,625 Allowance for impairment (301) (301) (301) (301)

70,000 70,324 70,000 70,324


398,460 303,617 383,575 288,188

Other receivables Investment receivable 40,902 64,768 40,157 64,768 Due from Takaful Operator 21 10,491 - - - Sundry deposits 1,181 1,263 1,181 1,263 Sundry receivables 868 1,149 585 531

53,442 67,180 41,923 66,562

521,902 441,121 495,498 425,074



10. Loans and receivables, excluding takaful receivables (continued)


General Takaful Financing receivables Secured financing 5,381 5,561 5,381 5,561 Allowance for impairment (381) (381) (381) (381)

5,000 5,180 5,000 5,180


64,494 82,553 60,175 77,807

Other receivables Investment receivable 7,214 8,764 7,214 8,764 Sundry deposits 574 1,062 574 1,062 Due from Takaful Operator 21 6,101 5,263 - - Due from Family Takaful Fund 21 2,540 12,631 2,540 12,631 Prepayment 35 - 35 - Sundry receivables 3,618 823 - -

20,082 28,543 10,363 22,457

89,576 116,276 75,538 105,444

Group / CompanyFinancing receivables Secured financing 75,703 76,470 75,682 76,402 Unsecured financing 325 538 325 538 Staff financing 5,230 7,250 4,015 5,509 Allowance for impairment (1,927) (1,935) (1,708) (1,935)

79,331 82,323 78,314 80,514


565,722 440,800 529,487 415,373

Other receivables Investment receivable 53,159 84,526 52,414 84,526 Sundry deposits 2,105 2,672 2,105 2,672 Prepayment 5,500 5,210 4,183 3,602 Sundry receivables 11,659 8,802 1,337 1,258

72,423 101,210 60,039 92,058

717,476 624,333 667,840 587,945



10. Loans and receivables, excluding takaful receivables (continued) The following loans and receivables, excluding takaful receivables mature after 12 months:


Takaful Operator Financing receivables 3,552 5,091 2,738 3,284 Fixed and call deposits with licensed financial institutions 5,000 - 5,000 -Other receivables 350 347 350 347

8,902 5,438 8,088 3,631

Family Takaful Financing receivables 70,000 70,000 70,000 70,000 Fixed and call deposits with licensed financial institutions 43,000 12,778 43,000 2,899 Other receivables 1,181 1,263 1,181 1,263

114,181 84,041 114,181 74,162

General Takaful Financing receivables 5,000 5,000 5,000 5,000 Fixed and call deposits with licensed financial institutions 7,000 4,314 7,000 1,933 Other receivables 574 1,062 574 1,062

12,574 10,376 12,574 7,995

Group / Company Financing receivables 78,740 80,091 77,738 78,284 Fixed and call deposits with licensed financial institutions 55,000 17,092 55,000 4,832 Other receivables 2,105 2,672 2,105 2,672

135,845 99,855 134,843 85,788

Offsetting of financial assets and financial liabilities No financial assets and liabilities have been set off for presentation purposes.



11. Takaful receivables


Family TakafulDue contributions 46,601 59,998 44,851 58,099 Due from retakaful / co-takaful 24,377 12,375 20,738 8,644

70,978 72,373 65,589 66,743 Less: Allowance for impaired debts 39.4 (2,781) (3,901) (2,754) (3,850)

68,197 68,472 62,835 62,893

General TakafulDue contributions 41,752 22,380 36,591 17,575 Due from retakaful / co-takaful 12,948 10,143 9,554 6,931


48,959 25,541 40,511 17,605

Group / CompanyDue contributions 88,353 82,378 81,442 75,674 Due from retakaful / co-takaful 37,325 22,518 30,292 15,575


117,156 94,013 103,346 80,498

Offsetting of financial assets and financial liabilities

No financial assets and liabilities have been set off for presentation purposes.

12. Qardh receivables


Takaful OperatorAt 1 January - 277 - - Increase during the year 11,458 3,274 - - Qardh written off 31 (11,458) (3,542) - - Effect of movement in exchange rates - (9) - -

At 31 December - - - -



13. Cash and cash equivalents


Takaful Operator Cash and bank balances 1,933 6,507 840 4,775 Fixed and call deposits with licensed financial institutions with maturity less than three months Licensed banks in Malaysia 62,310 71,483 44,933 44,242 Banks outside Malaysia 24,928 24,982 - -

89,171 102,972 45,773 49,017

Family Takaful Cash and bank balances 39,750 29,983 32,871 24,769 Fixed and call deposits with licensed financial institutions with maturity less than three months Licensed banks in Malaysia 171,816 191,102 171,816 186,479 Banks outside Malaysia 54,170 67,087 - -

265,736 288,172 204,687 211,248

General Takaful Cash and bank balances 40,705 11,731 37,240 10,344 Fixed and call deposits with licensed financial institutions with maturity less than three months Licensed banks in Malaysia 25,539 37,799 25,539 32,171 Banks outside Malaysia 9,468 11,578 - -

75,712 61,108 62,779 42,515

Group / Company Cash and bank balances 82,388 48,221 70,951 39,888 Fixed and call deposits with licensed financial institutions with maturity less than three months Licensed banks in Malaysia 259,665 300,384 242,288 262,892 Banks outside Malaysia 88,566 103,647 - -

430,619 452,252 313,239 302,780



14. Assets held for sale

As at 31 December 2013, the assets held for sale are as follows:

Group and Company 2013 2012 Note RM’000 RM’000

Takaful Operator At 1 January 1,340 - Settlement for asset held for sale (1,340) - Transferred from investment properties 4 1,730 1,340

At 31 December 1,730 1,340

Family Takaful At 1 January 1,360 668Settlement for asset held for sale (1,910) (668)Transferred from investment properties 4 2,810 1,360

At 31 December 2,260 1,360

General Takaful At 1 January 540 - Settlement for asset held for sale (540) - Transferred from investment properties 4 2,850 540

At 31 December 2,850 540

Group / Company At 1 January 3,240 668 Settlement for asset held for sale (3,790) (668)Transferred from property and equipment 3 1,260 -Transferred from investment properties 4 6,130 3,240

At 31 December 6,840 3,240

The carrying value of investment properties is the same as its carrying value before being reclassified to current assets.

15. Share capital and reserves

Takaful Operator / Group / Company Number of Number of Amount shares Amount shares 2013 2013 2012 2012 RM’000 ’000 RM’000 ’000

Authorised Ordinary shares of RM1.00 each 500,000 500,000 500,000 500,000

Issued and fully paid Ordinary shares of RM1.00 each 162,817 162,817 162,817 162,817



15. Share capital and reserves (continued)

Ordinary shares

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

Share premium

Share premium comprises the premium paid on subscription of shares in the Company over and above the par value of the shares.

Translation reserve

The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.

Fair value reserve

The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets recognised in other comprehensive income until the investments are derecognised or impaired.

Revaluation reserve

The revaluation reserve relates to the revaluation of land and buildings.

LTIP (Long Term Incentive Plan) reserve

The LTIP reserve comprises the cumulative value of employee services received for the issue of Restricted Share Plan and Performance Share Plan. When the LTIP is exercised, the amount from the LTIP reserve is transferred to share premium. When the LTIP expires, the amount from the LTIP reserve is transferred to retained earnings. LTIP is disclosed in note 16.

Retained earnings

The Company may distribute single tier exempt dividend to its shareholders out of its retained earnings. Pursuant to Section 60(1) of the IFSA, the Company is required to obtain Bank Negara Malaysia’s written approval prior to declaring or paying any dividend with effect from financial year beginning 1 January 2014.

Pursuant to the RBC Framework for Takaful Operator, the Company shall not pay dividends if its Capital Adequacy Ratio position is less than its internal target capital level or if the payment of dividend would impair its Capital Adequacy Ratio position to below its internal target.

16. Employee benefits

Share-based payments arrangement

At the Extraordinary General Meeting held on 24 July 2013, the Company’s shareholders approved the establishment of a Long Term Incentive Plan (LTIP), which comprises a Restricted Share Plan (RSP) and a Performance Share Plan (PSP), of not more than 10% of issued and paid-up share capital of the Company (excluding treasury shares) to eligible employees and executive director of the Company. The LTIP was effected on 20 August 2013 following the submission of the By-Laws for the LTIP to Bursa Malaysia Securities Berhad, the receipt of all required approvals and the compliance with the requirements pertaining to the LTIP.



16. Employee benefits (continued)

Share-based payments arrangement (continued)

The salient features of the LTIP are, inter alia, as follows:

i) The RSP is a restricted share plan for selected key employees and the executive director of the Group. The RSP Grant is intended as a one-off grant, subject to the discretion of the LTIP Committee for future grants, to retain key employees for the development, growth and success of the Group. The RSP will be vested to the RSP Grantees at no consideration over a period of up to three (3) years pro-rata which may include additional holding periods for each vesting as determined by the LTIP committee, whereby selected employees will be assessed based on, amongst others, the individual performance and achievement, which may include but are not limited to, profit after zakat and taxation and / or other financial measures as may be relevant, in accordance with terms and conditions stipulated and determined by the LTIP Committee in its discretion. The LTIP Committee is a committee established by the Board to implement and administer the LTIP in accordance with the LTIP By-Laws.

ii) The PSP is a performance share plan for selected key employees and the executive director of the Group. The PSP Grant is an annual grant to incentivise key employees for the long-term success and growth of the Group as well as shareholders’ value enhancement. The PSP will be vested to the RSP Grantees at no consideration over a period of up to three (3) years cliff vesting schedule whereby selected employees will be assessed based on, amongst others, the total shareholders’ return, which is the improvement in stock price including dividends paid, and the long-term financial performance of the Company over a period of three (3) financial years, or such other period of time should the LTIP Committee choose to do so, in accordance with terms and conditions stipulated and determined by the LTIP Committee in its discretion.

iii) Eligible employees are those executives (including executive director) of the Group (other than subsidiaries which are dormant)

who have attained the age of 18 years; entered into a full-time or fixed-term contract of employment with and is on the payroll of a company within the Group; have not served notice of resignation or received notice of termination on the date of the offer; whose service / employment have been confirmed in writing; and have fulfilled other eligibility criteria which has been determined by the LTIP Committee at its sole and absolute discretion from time to time.

iv) The total number of Takaful Malaysia Shares to be offered to any one of the employees and / or to be vested in any one of the grantees shall not be more than 10% of the Takaful Malaysia Shares made available under the LTIP and shall not either singly or collectively through persons connected with the said employee, holds 20% or more of the Company’s issued and paid up share capital.

v) The maximum number of Takaful Malaysia Shares to be allotted and issued under LTIP shall not be more than in aggregate 10% of the issued and paid-up ordinary share capital of the Company at any point in time during the duration of the LTIP.

vi) The LTIP shall be in force for a period of ten (10) years from the effective date of implementation of the LTIP.

vii) The new Takaful Malaysia Shares to be allotted and issued pursuant to the LTIP shall, upon allotment and issuance, rank pari passu in all respects with the then existing issued Takaful Malaysia Shares and shall be entitled to any rights, dividends, allotments and / or distributions attached thereto and / or which may declared, made or paid to the Company’s shareholders, provided that the relevant allotment date of such new shares is before the record date (as defined in the LTIP By-Laws) for any right, allotment or distribution.

viii) If the LTIP Committee so decides (but not otherwise), in the event of any alteration in the capital structure of the Company during the duration of the LTIP, such corresponding alterations (if any) may be made in the number of unvested Takaful Malaysia Shares and / or the method and / or manner in the vesting of the Takaful Malaysia Shares comprised in a grant.



16. Employee benefits (continued)

During the year, the number of the shares granted are as follows: Restricted Performance Shares Shares Number of Number of shares shares Total ’000 ’000 ’000

At 1 January, 2013 - - -Granted during the year 607 724 1,331

Outstanding at 31 December, 2013 607 724 1,331

The fair value of services received in return for Restricted Shares and Performance Shares granted are based on the fair value of Restricted Shares and Performance Shares granted respectively, measured using Monte Carlo Simulation, with the following inputs:

Restricted Performance shares sharesFair value and assumption 2013 2013

Fair value at grant date 7.194 6.996

Weighted average share price 7.194 6.996Share price at grant date 7.755 7.755Expected volatility (weighted average volatility) 34.30% 34.30%Option life (expected weighted average life) 3 3Expected dividends 0.0384 0.0384Risk-free interest rate (based on Malaysian government bonds) 3.30% to 3.52% 3.43%

Value of employee services received for issue of shares Group and Company Restricted Performance shares share Total RM’000 RM’000 RM’000

Expense recognised as share-based payments Shares granted in 2013 1,148 868 2,016



17. Qardh payables

Group 2013 2012 RM’000 RM’000

Family Takaful At 1 January 10,398 11,398 Increase / (Decrease) during the year 11,458 (592)Effect of movement in exchange rates 1,172 (408)

At 31 December 23,028 10,398

General Takaful At 1 January 23,888 20,798 Increase / (Decrease) during the year - 3,866 Effect of movement in exchange rates 1,746 (776)

At 31 December 25,634 23,888

18. Takaful contract liabilities

The takaful contract liabilities comprise the following: Group Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

Family TakafulProvision for outstanding claims (a) 195,807 148,565 176,375 140,673 Participants’ fund (c) 4,554,923 4,254,771 4,282,474 3,958,110

4,750,730 4,403,336 4,458,849 4,098,783

General Takaful Provision for outstanding claims (a) 665,467 584,509 633,291 545,389 Provision for unearned contributions (b) 296,425 295,439 280,111 279,351 Participants’ fund (c) 219,124 220,795 213,801 217,693

1,181,016 1,100,743 1,127,203 1,042,433

Group / Company Provision for outstanding claims (a) 861,274 733,074 809,666 686,062 Provision for unearned contributions (b) 296,425 295,439 280,111 279,351 Participants’ fund (c) 4,735,952 4,434,586 4,458,180 4,134,823

5,893,651 5,463,099 5,547,957 5,100,236



18. Takaful contract liabilities (continued)

(a) Provision for outstanding claims

The provision for outstanding claims and its movements are further analysed as follows:

<-------------------------------------------------------------- Group-------------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family TakafulProvision for claims reported by participants 40,150 (2,278) 37,872 28,387 (3,707) 24,680 Provision for IBNR 155,657 (32,845) 122,812 120,178 (14,964) 105,214

Provision for outstanding claims 195,807 (35,123) 160,684 148,565 (18,671) 129,894

General Takaful Provision for claims reported by participants 433,215 (291,300) 141,915 389,557 (221,036) 168,521 Provision for IBNR 232,252 (80,970) 151,282 194,952 (61,443) 133,509


GroupProvision for claims reported by participants 473,365 (293,578) 179,787 417,944 (224,743) 193,201 Provision for IBNR 387,909 (113,815) 274,094 315,130 (76,407) 238,723


<------------------------------------------------------------ Company ----------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family Takaful Provision for claims reported by participants 26,139 (1,568) 24,571 25,386 (2,854) 22,532 Provision for IBNR 150,236 (32,053) 118,183 115,287 (14,721) 100,566


General Takaful Provision for claims reported by participants 407,039 (277,129) 129,910 356,014 (204,619) 151,395 Provision for IBNR 226,252 (80,316) 145,936 189,375 (60,835) 128,540


Company Provision for claims reported by participants 433,178 (278,697) 154,481 381,400 (207,473) 173,927 Provision for IBNR 376,488 (112,369) 264,119 304,662 (75,556) 229,106





(a) Provision for outstanding claims (continued)

Movement of provision for outstanding claims:

<----------------------------------------------------------- Group-------------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family Takaful At 1 January 28 148,565 (18,671) 129,894 102,681 (8,002) 94,679 Claims incurred during the year 618,967 (45,815) 573,152 482,686 (31,992) 450,694 Claims paid during the year 28 (607,451) 47,009 (560,442) (484,087) 29,475 (454,612)Increase in IBNR 35,479 (17,881) 17,598 47,734 (8,241) 39,493 Effect of movement in exchange rates 247 235 482 (449) 89 (360)

At 31 December 28 195,807 (35,123) 160,684 148,565 (18,671) 129,894

General Takaful At 1 January 28 584,509 (282,479) 302,030 531,501 (254,017) 277,484 Claims incurred during the year 313,703 (179,774) 133,929 196,791 (49,523) 147,268 Adjustment to claims incurred in prior accident years (91,255) 74,157 (17,098) (18,639) 15,631 (3,008)Claims paid during the year 28 (176,055) 32,834 (143,221) (173,590) 26,523 (147,067)Increase in IBNR 37,300 (19,633) 17,667 51,093 (22,800) 28,293 Effect of movement in exchange rates (2,735) 2,625 (110) (2,647) 1,707 (940)

At 31 December 28 665,467 (372,270) 293,197 584,509 (282,479) 302,030

GroupAt 1 January 28 733,074 (301,150) 431,924 634,182 (262,019) 372,163 Claims incurred during the year 918,583 (225,695) 692,888 675,824 (81,515) 594,309 Adjustment to claims incurred in prior accident years (91,255) 74,157 (17,098) (18,639) 15,631 (3,008)Claims paid during the year 28 (769,419) 79,843 (689,576) (654,024) 55,998 (598,026)Increase in IBNR 72,779 (37,408) 35,371 98,827 (31,041) 67,786 Effect of movement in exchange rates (2,488) 2,860 372 (3,096) 1,796 (1,300)

At 31 December 28 861,274 (407,393) 453,881 733,074 (301,150) 431,924




(a) Provision for outstanding claims (continued)

<--------------------------------------------------------- Company ----------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family TakafulAt 1 January 28 140,673 (17,575) 123,098 93,693 (7,045) 86,648 Claims incurred during the year 541,505 (35,555) 505,950 415,213 (21,507) 393,706 Claims paid during the year 28 (540,752) 36,841 (503,911) (415,977) 19,349 (396,628)Increase in IBNR 34,949 (17,332) 17,617 47,744 (8,372) 39,372

At 31 December 28 176,375 (33,621) 142,754 140,673 (17,575) 123,098

General Takaful At 1 January 28 545,389 (265,454) 279,935 477,281 (227,776) 249,505 Claims incurred during the year 299,608 (175,963) 123,645 187,837 (53,553) 134,284 Adjustment to claims incurred in prior accident years (91,255) 74,157 (17,098) (18,639) 15,631 (3,008)Claims paid during the year 28 (157,328) 29,296 (128,032) (153,229) 23,382 (129,847)Increase in IBNR 36,877 (19,481) 17,396 52,139 (23,138) 29,001

At 31 December 28 633,291 (357,445) 275,846 545,389 (265,454) 279,935

Company At 1 January 28 686,062 (283,029) 403,033 570,974 (234,821) 336,153 Claims incurred during the year 829,670 (211,518) 618,152 599,397 (75,060) 524,337 Adjustment to claims incurred in prior accident years (91,255) 74,157 (17,098) (18,639) 15,631 (3,008)Claims paid during the year 28 (686,637) 66,137 (620,500) (565,553) 42,731 (522,822)Increase in IBNR 71,826 (36,813) 35,013 99,883 (31,510) 68,373

At 31 December 28 809,666 (391,066) 418,600 686,062 (283,029) 403,033




(b) Provision for unearned contributions

The provision for unearned contributions and its movements are further analysed as follows:

<----------------------------------------------------------- Group-------------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General Takaful / GroupProvision for unearned contributions 296,425 (80,200) 216,225 295,439 (72,297) 223,142

<---------------------------------------------------------- Company ---------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General Takaful / CompanyProvision for unearned contributions 280,111 (77,545) 202,566 279,351 (69,745) 209,606

Movement of provision for unearned contributions:

<------------------------------------------------------------ Group -----------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General TakafulAt 1 January 295,439 (72,297) 223,142 352,154 (88,597) 263,557 Contributions written during the year 23 428,406 (141,347) 287,059 401,437 (105,688) 295,749 Contributions earned during the year 23 (424,992) 132,969 (292,023) (457,129) 121,955 (335,174)Effect of movement in exchange rates (2,428) 475 (1,953) (1,023) 33 (990)

At 31 December 296,425 (80,200) 216,225 295,439 (72,297) 223,142

GroupAt 1 January 295,439 (72,297) 223,142 352,154 (88,597) 263,557 Contributions written during the year 23 427,808 (141,347) 286,461 400,960 (105,688) 295,272 Contributions earned during the year 23 (424,394) 132,969 (291,425) (456,652) 121,955 (334,697)Effect of movement in exchange rates (2,428) 475 (1,953) (1,023) 33 (990)

At 31 December 296,425 (80,200) 216,225 295,439 (72,297) 223,142




(b) Provision for unearned contributions (continued)

<----------------------------------------------------------- Company --------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General TakafulAt 1 January 279,351 (69,745) 209,606 327,063 (85,326) 241,737 Contributions written during the year 23 386,635 (134,271) 252,364 349,547 (97,408) 252,139 Contributions earned during the year 23 (385,875) 126,471 (259,404) (397,259) 112,989 (284,270)

At 31 December 280,111 (77,545) 202,566 279,351 (69,745) 209,606

CompanyAt 1 January 279,351 (69,745) 209,606 327,063 (85,326) 241,737 Contributions written during the year 23 386,037 (134,271) 251,766 349,070 (97,408) 251,662 Contributions earned during the year 23 (385,277) 126,471 (258,806) (396,782) 112,989 (283,793)

At 31 December 280,111 (77,545) 202,566 279,351 (69,745) 209,606

(c) Participants’ fund Participants’ fund balance at end of the reporting period comprise the following:

<------------------------------------------------------------ Group -----------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family TakafulActuarial liabilities 3,708,819 (148,340) 3,560,479 3,274,935 (63,856) 3,211,079 Unallocated surplus / accumulated surplus 699,984 - 699,984 681,054 - 681,054 AFS reserve (2,177) - (2,177) 97,326 - 97,326 Translation reserve 1,238 - 1,238 359 - 359 Net assets value attributable to unitholders 147,059 - 147,059 201,097 - 201,097

4,554,923 (148,340) 4,406,583 4,254,771 (63,856) 4,190,915

General TakafulUnallocated surplus / accumulated surplus 215,677 - 215,677 209,283 - 209,283 AFS reserve 3,556 - 3,556 10,464 - 10,464 Translation reserve (109) - (109) 1,048 - 1,048

219,124 - 219,124 220,795 - 220,795




(c) Participants’ fund (continued)

<--------------------------------------------------------------- Group -----------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

GroupActuarial liabilities 3,708,819 (148,340) 3,560,479 3,274,935 (63,856) 3,211,079 Unallocated surplus / accumulated surplus 915,661 - 915,661 890,337 - 890,337 AFS reserve 1,379 - 1,379 107,790 - 107,790 Translation reserve 1,129 - 1,129 1,407 - 1,407 Net assets value attributable to unitholders 108,964 - 108,964 160,117 - 160,117

4,735,952 (148,340) 4,587,612 4,434,586 (63,856) 4,370,730

<------------------------------------------------------------- Company ---------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family Takaful Actuarial liabilities 3,498,433 (142,240) 3,356,193 3,061,645 (58,161) 3,003,484 Unallocated surplus / accumulated surplus 699,984 - 699,984 675,594 - 675,594 AFS reserve 8,465 - 8,465 98,215 - 98,215 Net assets value attributable to unitholders 75,592 - 75,592 122,656 - 122,656

4,282,474 (142,240) 4,140,234 3,958,110 (58,161) 3,899,949

General Takaful Unallocated surplus / accumulated surplus 210,101 - 210,101 207,320 - 207,320 AFS reserve 3,700 - 3,700 10,373 - 10,373

213,801 - 213,801 217,693 - 217,693

Company Actuarial liabilities 3,498,433 (142,240) 3,356,193 3,086,592 (58,161) 3,028,431 Unallocated surplus / accumulated surplus 910,085 - 910,085 857,967 - 857,967 AFS reserve 12,165 - 12,165 108,588 - 108,588 Net assets value attributable to unitholders 37,497 - 37,497 81,676 - 81,676

4,458,180 (142,240) 4,315,940 4,134,823 (58,161) 4,076,662





The participants’ fund movements are analysed as follows:

<--------------------------------------------------------------- Group ------------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family TakafulAt 1 January 4,254,771 (63,856) 4,190,915 3,935,483 (64,808) 3,870,675 Net earned contributions 1,098,994 (51,952) 1,047,042 987,661 (46,869) 940,792 Investment income 181,023 - 181,023 186,381 - 186,381 Realised gains and (losses) 117,092 - 117,092 98,082 - 98,082 Fair value gains and (losses) 9,025 - 9,025 10,634 - 10,634 Other operating income 1,133 - 1,133 6,587 - 6,587 Net benefits and claims (654,446) 63,696 (590,750) (530,420) 40,233 (490,187)Fees deducted (net) (245,834) - (245,834) (195,496) - (195,496)Other operating expenses (8,796) - (8,796) (12,722) - (12,722)Profit paid to participants (762) - (762) (2,330) - (2,330)Increase in actuarial liabilities 38,482 (85,501) (47,019) (14,309) 489 (13,820)Profit attributable to the Takaful Operator (92,464) (11,745) (104,209) (135,816) 6,636 (129,180)Excess payment transferred to participants 7,067 - 7,067 - - -Change in AFS reserve (99,503) - (99,503) (13,384) - (13,384)Withholding tax (3,417) - (3,417) (41,036) - (41,036)Effect of movement in exchange rates (47,442) 1,018 (46,424) (24,544) 463 (24,081)

At 31 December 4,554,923 (148,340) 4,406,583 4,254,771 (63,856) 4,190,915

General Takaful At 1 January 220,795 - 220,795 184,039 - 184,039 Net earned contributions 292,023 - 292,023 335,174 - 335,174 Investment income 30,877 - 30,877 31,031 - 31,031 Realised gains and (losses) 15,844 - 15,844 13,508 - 13,508 Fair value gains and (losses) 596 - 596 (306) - (306)Other operating income 1,798 - 1,798 5,675 - 5,675 Net benefits and claims (134,498) - (134,498) (172,553) - (172,553)Fees deducted (net) (116,324) - (116,324) (80,600) - (80,600)Other operating expenses (2,985) - (2,985) (5,319) - (5,319)Profit paid to participants (30,877) - (30,877) (27,558) - (27,558)Profit attributable to the Takaful Operator (49,447) - (49,447) (61,833) - (61,833)Change in AFS reserve (6,908) - (6,908) 1,084 - 1,084 Withholding tax (613) - (613) (1,773) - (1,773)Effect of movement in exchange rates (1,157) - (1,157) 226 - 226

At 31 December 219,124 - 219,124 220,795 - 220,795




(c) Participants’ fund (continued) <--------------------------------------------------------------- Group -----------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group At 1 January 4,434,586 (63,856) 4,370,730 4,081,300 (64,808) 4,016,492 Net earned contributions 1,391,017 (51,952) 1,339,065 1,322,835 (46,869) 1,275,966 Investment income 211,900 - 211,900 217,412 - 217,412 Realised gains and (losses) 132,936 - 132,936 111,590 - 111,590 Fair value gains and (losses) 9,621 - 9,621 10,328 - 10,328 Other operating income 2,931 - 2,931 12,262 - 12,262 Net benefits and claims (782,178) 63,696 (718,482) (702,973) 40,233 (662,740)Fees deducted (net) (362,158) - (362,158) (276,096) - (276,096)Other operating expenses (11,781) - (11,781) (18,041) - (18,041)Profit paid to participants (31,639) - (31,639) (29,888) - (29,888)Increase in actuarial liabilities 38,482 (85,501) (47,019) (14,309) 489 (13,820)Profit attributable to the Takaful Operator (145,792) (11,745) (157,537) (200,407) 6,636 (193,771)Excess payment transferred to participants 7,067 - 7,067 - - -Change in AFS reserve (106,411) - (106,411) (12,300) - (12,300)Withholding tax (4,030) - (4,030) (42,809) - (42,809)Effect of movement in exchange rates (48,599) 1,018 (47,581) (24,318) 463 (23,855)

At 31 December 4,735,952 (148,340) 4,587,612 4,434,586 (63,856) 4,370,730

<------------------------------------------------------------- Company ---------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family TakafulAt 1 January 3,958,110 (58,161) 3,899,949 3,660,092 (59,755) 3,600,337 Net earned contributions 978,839 (41,004) 937,835 862,722 (33,244) 829,478 Investment income 170,831 - 170,831 165,218 - 165,218 Realised gains and (losses) 108,016 - 108,016 92,909 - 92,909 Fair value gains and (losses) 11,808 - 11,808 10,256 - 10,256 Other operating income 1,096 - 1,096 5,514 - 5,514 Net benefits and claims (576,454) 52,887 (523,567) (462,957) 29,879 (433,078)Fees deducted (net) (215,885) - (215,885) (164,817) - (164,817)Other operating expenses (7,899) - (7,899) (11,596) - (11,596)Profit paid to participants (390) - (390) (1,572) - (1,572)Increase in actuarial liabilities 37,409 (84,079) (46,670) (15,603) 1,594 (14,009)Profit attributable to the Takaful Operator (96,907) (11,883) (108,790) (128,082) 3,365 (124,717)Excess payment transferred to participants 7,067 - 7,067 - - -Change in AFS reserve (89,750) - (89,750) (12,938) - (12,938)Withholding tax (3,417) - (3,417) (41,036) - (41,036)

At 31 December 4,282,474 (142,240) 4,140,234 3,958,110 (58,161) 3,899,949





<------------------------------------------------------------ Company ----------------------------------------------------> 2013 2012 Gross Retakaful Net Gross Retakaful Net RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General TakafulAt 1 January 217,693 - 217,693 199,469 - 199,469 Net earned contributions 259,404 - 259,404 284,270 - 284,270 Investment income 29,824 - 29,824 30,164 - 30,164 Realised gains and (losses) 15,641 - 15,641 13,358 - 13,358 Fair value gains and (losses) 596 - 596 (306) - (306)Other operating income 1,267 - 1,267 4,953 - 4,953 Net benefits and claims (123,943) - (123,943) (160,277) - (160,277)Fees deducted (net) (97,867) - (97,867) (57,430) - (57,430)Other operating expenses (2,898) - (2,898) (3,732) - (3,732)Profit paid to participants (30,655) - (30,655) (27,558) - (27,558)Profit attributable to the Takaful Operator (47,975) - (47,975) (64,466) - (64,466)Change in AFS reserve (6,673) - (6,673) (1,773) - (1,773)Withholding tax (613) - (613) 1,021 - 1,021

At 31 December 213,801 - 213,801 217,693 - 217,693

Company At 1 January 4,134,823 (58,161) 4,076,662 3,821,339 (59,755) 3,761,584 Net earned contributions 1,238,243 (41,004) 1,197,239 1,146,992 (33,244) 1,113,748 Investment income 200,655 - 200,655 195,382 - 195,382 Realised gains and (losses) 123,657 - 123,657 106,267 - 106,267 Fair value gains and (losses) 12,404 - 12,404 9,950 - 9,950 Other operating income 2,363 - 2,363 10,467 - 10,467 Net benefits and claims (693,631) 52,887 (640,744) (623,234) 29,879 (593,355)Fees deducted (net) (313,752) - (313,752) (222,247) - (222,247)Other operating expenses (10,797) - (10,797) (15,328) - (15,328)Profit paid to participants (31,045) - (31,045) (29,130) - (29,130)Increase in actuarial liabilities 37,409 (84,079) (46,670) (15,603) 1,594 (14,009)Profit attributable to the Takaful Operator (148,763) (11,883) (160,646) (195,306) 3,365 (191,941)Excess payment transferred to participants 7,067 - 7,067 - - -Change in AFS reserve (96,423) - (96,423) (11,917) - (11,917)Withholding tax (4,030) - (4,030) (42,809) - (42,809)

At 31 December 4,458,180 (142,240) 4,315,940 4,134,823 (58,161) 4,076,662



19. Expense reserves


Takaful Operator / Group / Company At 1 January 89,486 19,739 84,973 15,758 Provision for the year, net 42,770 70,110 42,306 69,215 Effect of movement in exchange rates (734) (363) - -

At 31 December 131,522 89,486 127,279 84,973

20. Takaful payables


Family Takaful Due to retakaful companies 17,941 11,674 14,807 6,491 Due to intermediaries / participants 7,918 8,827 7,918 8,827

25,859 20,501 22,725 15,318

General Takaful Due to retakaful companies 43,418 20,069 42,298 17,949 Due to intermediaries / participants 6,151 2,556 6,151 2,556

49,569 22,625 48,449 20,505

Group / CompanyDue to retakaful companies 61,359 31,743 57,105 24,440 Due to intermediaries / participants 14,069 11,383 14,069 11,383

75,428 43,126 71,174 35,823



21. Other payables


Takaful Operator Deposit payable 272 294 272 294 Outstanding purchases of investment securities 1,207 1,552 1,207 1,552 Due to Family Takaful Fund 10 10,491 - - -Due to General Takaful Fund 10 6,101 5,263 - - Zakat payable 1,505 1,211 1,009 789 Other payables and accruals 71,791 76,211 64,378 70,045

91,367 84,531 66,866 72,680

Family Takaful Advanced takaful contribution 4,325 9,215 4,325 7,178 Deposit payable 6,081 1,828 1,963 1,828 Profit payable to participants 1,193 1,028 16 31 Unclaimed monies 659 14,544 659 14,544 Outstanding purchases of investment securities 6,542 7,605 6,542 7,605 Due to Takaful Operator 10 25,661 34,390 25,661 27,761 Due to General Takaful Fund 10 2,540 12,631 2,540 12,631 Other payables and accruals 76,786 75,193 76,550 73,579

123,787 156,434 118,256 145,157

General TakafulAdvanced takaful contribution 6,610 5,099 6,610 5,099 Deposit payable 328 313 328 313 Profit payable to participants 2,038 2,583 1,670 2,315 Outstanding purchases of investment securities 2,481 1,569 2,481 1,569 Due to Takaful Operator 10 9,746 14,161 9,746 13,970 Other payables and accruals 46,058 37,767 44,264 37,037

67,261 61,492 65,099 60,303

Group / Company Advanced takaful contribution 10,935 14,314 10,935 12,277 Deposit payable 6,681 2,435 2,563 2,435 Profit payable to participants 3,231 3,611 1,686 2,346 Unclaimed monies 659 14,544 659 14,544 Outstanding purchases of investment securities 10,230 10,726 10,230 10,726 Zakat payable 1,505 1,211 1,009 789 Other payables and accruals 194,635 189,172 185,192 180,661

227,876 236,013 212,274 223,778



22. Operating revenue


Takaful Operator Investment income 24 24,529 19,456 21,669 17,000

Family Takaful Gross contributions 23 1,052,493 973,005 932,169 848,711 Investment income 24 181,023 186,381 170,831 165,218

1,233,516 1,159,386 1,103,000 1,013,929

General Takaful Gross contributions 23 428,406 401,437 386,635 349,547 Investment income 24 30,877 31,031 29,824 30,164

459,283 432,468 416,459 379,711

Group / CompanyGross contributions 23 1,480,301 1,373,965 1,318,206 1,197,781 Investment income 24 232,705 233,569 219,175 209,708

1,713,006 1,607,534 1,537,381 1,407,489

23. Net earned contributions


Family Takaful(i) Gross contributions 22 1,052,493 973,005 932,169 848,711 Change in actuarial reserves / unearned contributions reserves 46,501 14,656 46,670 14,011

Gross earned contributions 1,098,994 987,661 978,839 862,722

(ii) Retakaful (51,952) (45,798) (41,004) (33,244) Change in actuarial reserves / unearned contributions reserves - (1,071) - -

Contributions ceded to retakaful (51,952) (46,869) (41,004) (33,244)

(iii) Net earned contributions 1,047,042 940,792 937,835 829,478



23. Net earned contributions (continued)


General Takaful (i) Gross contributions 18(b), 22 428,406 401,437 386,635 349,547 Change in actuarial reserves / unearned contributions reserves (3,414) 55,692 (760) 47,712

Gross earned contributions 18(b) 424,992 457,129 385,875 397,259

(ii) Retakaful 18(b) (141,347) (105,688) (134,271) (97,408) Change in actuarial reserves / unearned contributions reserves 8,378 (16,267) 7,800 (15,581)

Contributions ceded to retakaful 18(b) (132,969) (121,955) (126,471) (112,989)

(iii) Net earned contributions 292,023 335,174 259,404 284,270

Group / Company (i) Gross contributions 22 1,480,301 1,373,965 1,318,206 1,197,781 Change in actuarial reserves / unearned contributions reserves 43,087 70,348 45,910 61,723

Gross earned contributions 1,523,388 1,444,313 1,364,116 1,259,504

(ii) Retakaful (193,299) (151,486) (175,275) (130,652) Change in actuarial reserves / unearned contributions reserves 8,378 (17,338) 7,800 (15,581)

Contributions ceded to retakaful (184,921) (168,824) (167,475) (146,233)

(iii) Net earned contributions 1,338,467 1,275,489 1,196,641 1,113,271



24. Investment income


Takaful Operator Rental income from investment properties 4 642 742 642 737 FVTPL financial assets Dividend income - Equity securities - quoted outside Malaysia 272 - - - Profit income - Islamic debt securities 172 - - - AFS financial assets Dividend income - Equity securities - quoted in Malaysia 2,121 1,603 2,121 1,603 - quoted outside Malaysia 5 - - - - Unit trusts 1,458 619 1,458 619 Profit income - Institutional Trust Account 3,119 2,915 3,119 2,915 - Islamic debt securities 10,934 8,085 10,837 8,085 - Malaysian Government Islamic papers 408 404 408 404 Amortisation of premiums, net of accretion of discounts (1,104) (513) (1,104) (513)HTM financial assets Profit income - Islamic debt securities 121 466 - - LAR profit income 5,349 4,290 4,457 3,717 Cash and cash equivalents profit income 1,317 1,425 16 13 Investment expenses (285) (580) (285) (580)

Total investment income 22 24,529 19,456 21,669 17,000



24. Investment income (continued)


Family Takaful Rental income from investment properties 4 7,320 8,821 6,709 8,172 FVTPL financial assets Dividend income - Equity securities - quoted in Malaysia 1,255 1,470 1,255 1,470 Profit income - Islamic debt securities 4,638 13,042 802 776 AFS financial assets Dividend income - Equity securities - quoted in Malaysia 17,001 12,802 17,001 12,802 - Unit trusts 3,903 1,087 3,903 1,087 Profit income - Institutional Trust Account 9,508 9,059 9,508 9,059 - Islamic debt securities 88,532 95,064 87,781 91,017 - Malaysian Government Islamic papers 18,059 19,644 18,059 19,644 Amortisation of premiums, net of accretion of discounts (5,495) (4,453) (5,495) (4,453)HTM financial assets Profit income - Islamic debt securities 10,206 6,647 9,095 6,464 - Malaysian Government Islamic papers 4,368 4,369 4,368 4,369 Amortisation of premiums, net of accretion of discounts (275) (178) (29) 5 LAR profit income 21,310 17,041 20,660 16,406 Cash and cash equivalents profit income 3,548 3,623 69 57 Investment expenses (2,855) (1,657) (2,855) (1,657)






General Takaful Rental income from investment properties 4 783 1,032 783 1,032 AFS financial assets Dividend income - Equity securities - quoted in Malaysia 3,461 3,022 3,461 3,022 - Unit trusts 525 181 525 181 Profit income - Institutional Trust Account 1,845 1,764 1,845 1,764 - Islamic debt securities 17,108 17,330 17,108 17,330 - Malaysian Government Islamic papers 3,066 3,653 3,066 3,653 Amortisation of premiums, net of accretion of discounts (2,017) (1,858) (2,017) (1,858)HTM financial assets Profit income - Islamic debt securities 271 181 - - - Malaysian Government Islamic papers 1,279 1,280 1,279 1,280 Amortisation of premiums, net of accretion of discounts (47) (45) (47) (45)LAR profit income 4,220 4,416 4,007 4,326 Cash and cash equivalents profit income 592 619 23 23 Investment expenses (209) (544) (209) (544)






Group / Company Rental income from investment properties 4 3,087 4,901 3,051 4,872 FVTPL financial assets Dividend income - Equity securities - quoted in Malaysia 1,255 1,470 1,255 1,470 - quoted outside Malaysia 272 - - - Profit income - Islamic debt securities 4,810 13,042 802 776 AFS financial assets Dividend income - Equity securities - quoted in Malaysia 22,583 17,427 22,583 17,427 - quoted outside Malaysia 5 - - - - Unit trusts 5,886 1,887 5,886 1,887 Profit income - Institutional Trust Account 14,472 13,738 14,472 13,738 - Islamic debt securities 116,574 120,479 115,726 116,432 - Malaysian Government Islamic papers 21,533 23,701 21,533 23,701 Amortisation of premiums, net of accretion of discounts (8,616) (6,824) (8,616) (6,824)HTM financial assets Profit income - Islamic debt securities 10,598 7,294 9,095 6,464 - Malaysian Government Islamic papers 5,647 5,649 5,647 5,649 Amortisation of premiums, net of accretion of discounts (322) (223) (76) (40)LAR profit income 30,879 25,747 29,124 24,449 Cash and cash equivalents profit income 5,457 5,667 108 93 Investment expenses (1,415) (386) (1,415) (386)




25. Realised gains and (losses)


Takaful OperatorRealised gains / (losses): Property and equipment 391 159 147 126

Asset held for sale 27 - 27 -

AFS financial assets Equity securities - quoted in Malaysia 7,417 5,882 7,417 5,882 - quoted outside Malaysia 166 133 - - Unit trusts - quoted in Malaysia 1,969 1,492 1,969 1,492 - quoted outside Malaysia 377 412 - - Islamic debt securities - unquoted in Malaysia 1,151 1,410 1,151 1,410 - unquoted outside Malaysia - 74 - - Malaysian Government Islamic papers 163 137 163 137 Investment units in commodity, equity and fixed income closed end fund 155 - 155 -

11,398 9,540 10,855 8,921

11,816 9,699 11,029 9,047

Family TakafulRealised gains / (losses): Investment properties - (72) - (72)

Asset held for sale (691) - (691) -

AFS financial assets Equity securities - quoted in Malaysia 61,236 37,632 61,236 37,632 - quoted outside Malaysia - 79 - - Unit trusts - quoted in Malaysia 2,729 3,522 2,729 3,522 - quoted outside Malaysia 9,076 4,308 - - Islamic debt securities - unquoted in Malaysia 40,065 50,702 40,065 50,702 - unquoted outside Malaysia - 786 - - Malaysian Government Islamic papers 4,677 1,125 4,677 1,125

117,783 98,154 108,707 92,981

117,092 98,082 108,016 92,909



25. Realised gains and (losses) (continued)


General Takaful Realised gains / (losses): Asset held for sale (16) - (16) -

AFS financial assets Equity securities - quoted in Malaysia 11,517 8,036 11,517 8,036 Unit trusts - quoted in Malaysia 859 391 859 391 - quoted outside Malaysia 203 150 - - Islamic debt securities - unquoted in Malaysia 2,544 4,733 2,544 4,733 Malaysian Government Islamic papers 737 198 737 198

15,860 13,508 15,657 13,358

15,844 13,508 15,641 13,358

Group / Company Realised gains / (losses): Property and equipment 391 159 147 126

Investment properties - (72) - (72)

Asset held for sale (680) - (680) -

AFS financial assets Equity securities - quoted in Malaysia 80,170 51,550 80,170 51,550 - quoted outside Malaysia 166 212 - - Unit trusts - quoted in Malaysia 5,557 5,405 5,557 5,405 - quoted outside Malaysia 9,656 4,870 - - Islamic debt securities - unquoted in Malaysia 43,760 56,845 43,760 56,845 - unquoted outside Malaysia - 860 - - Malaysian Government Islamic papers 5,577 1,460 5,577 1,460

144,886 121,202 135,064 115,260

144,597 121,289 134,531 115,314



26. Fair value gains and (losses)


Takaful OperatorFair value gains / (losses) arising from: Investment properties 4 317 845 - 840

FVTPL financial assets Equity securities - quoted outside Malaysia (334) - - - Islamic debt securities - quoted outside Malaysia (178) - - -

(512) - - -

(195) 845 - 840

Family Takaful Fair value gains / (losses) arising from: Investment properties 4 4,938 4,300 3,032 3,775

FVTPL financial assets Equity securities - quoted in Malaysia 7,551 3,922 7,551 3,922 - quoted outside Malaysia (1,297) - - - Islamic debt securities - quoted outside Malaysia (3,392) - - - - unquoted in Malaysia (403) (46) (403) (46) - unquoted outside Malaysia - (147) - - Commodity, equity and fixed income closed end fund 1,628 2,605 1,628 2,605

4,087 6,334 8,776 6,481

9,025 10,634 11,808 10,256

General TakafulFair value gains / (losses) arising from: Investment properties 4 596 (306) 596 (306)



26. Fair value gains and (losses) (continued)


Group / Company Fair value gains / (losses) arising from: Investment properties 4 6,101 2,257 5,754 2,315

FVTPL financial assets Equity securities - quoted in Malaysia 7,551 3,922 7,551 3,922 - quoted outside Malaysia (1,631) - - - Islamic debt securities - quoted outside Malaysia (3,570) - - - - unquoted in Malaysia (403) (46) (403) (46) - unquoted outside Malaysia - (147) - - Commodity, equity and fixed income closed end fund 1,628 2,605 1,628 2,605

3,575 6,334 8,776 6,481

9,676 8,591 14,530 8,796

27. Other operating income


Takaful Operator Income from Family Takaful business, service charge and management fees 11,090 8,072 6,755 6,571 Writeback of allowance for impaired financing 8 849 227 570 Miscellaneous income 853 1,931 - -

11,951 10,852 6,982 7,141

Family Takaful Recovery of bad debts written off - 518 - 518 Writeback of allowance for impaired debts 39.4 1,120 1,666 1,096 1,591 Writeback of allowance for impaired financing - 643 - 643 Miscellaneous income 13 3,760 - 2,762

1,133 6,587 1,096 5,514

General TakafulRecovery of bad debts written off - 7 - 7 Writeback of allowance for impaired debts 39.4 1,241 2,540 1,267 2,543 Writeback of allowance for impaired financing - 643 - 643 Miscellaneous income 557 2,485 - 1,760

1,798 5,675 1,267 4,953



27. Other operating income (continued)


Group / Company Income from Family Takaful business, service charge and management fees 1,691 1,501 - - Recovery of bad debts written off - 525 - 525 Writeback of allowance for impaired debts 39.4 2,361 4,206 2,363 4,134 Writeback of allowance for impaired financing 8 2,135 227 1,856 Miscellaneous income 1,423 8,176 - 4,522

5,483 16,543 2,590 11,037

28. Net benefits and claims


Family TakafulGross benefits / claims paid 18(a) (607,451) (484,087) (540,752) (415,977)Retakaful recoveries 18(a) 47,009 29,475 36,841 19,349

Net benefits / claims paid (560,442) (454,612) (503,911) (396,628)

Gross change in contract liabilities: At 31 December 18(a) (195,807) (148,565) (176,375) (140,673) Less: At 1 January 18(a) (148,565) (102,681) (140,673) (93,693) Effect of movement in exchange rates 247 (449) - -

(46,995) (46,333) (35,702) (46,980)

Change in contract liabilities ceded to v retakaful companies: At 31 December 18(a) 35,123 18,671 33,621 17,575 Less: At 1 January 18(a) 18,671 8,002 17,575 7,045 Effect of movement in exchange rates 235 89 - -

16,687 10,758 16,046 10,530

(590,750) (490,187) (523,567) (433,078)



28. Net benefits and claims (continued)


General Takaful Gross benefits / claims paid 18(a) (176,055) (173,590) (157,328) (153,229)Retakaful recoveries 18(a) 32,834 26,523 29,296 23,382

Net benefits / claims paid 143,221 (147,067) (128,032) (129,847)

Gross change in contract liabilities: At 31 December 18(a) (665,467) (584,509) (633,291) (545,389) Less: At 1 January 18(a) (584,509) (531,501) (545,389) (477,281) Effect of movement in exchange rates (2,735) (2,647) - -

(83,693) (55,655) (87,902) (68,108)

Change in contract liabilities ceded to retakaful companies: At 31 December 18(a) 372,270 282,479 357,445 265,454 Less: At 1 January 18(a) 282,479 254,017 265,454 227,776 Effect of movement in exchange rates 2,625 1,707 - -

92,416 30,169 91,991 37,678

(134,498) (172,553) (123,943) (160,277) Group / CompanyGross benefits / claims paid 18(a) (769,419) (654,024) (686,637) (565,553)Retakaful recoveries 18(a) 79,843 55,998 66,137 42,731

Net benefits / claims paid (689,576) (598,026) (620,500) (522,822)

Gross change in contract liabilities: At 31 December 18(a) (861,274) (733,074) (809,666) (686,062) Less: At 1 January 18(a) (733,074) (634,182) (686,062) (570,974) Effect of movement in exchange rates (2,488) (3,096) - -

(130,688) (101,988) (123,604) (115,088)

Change in contract liabilities ceded to retakaful companies: At 31 December 18(a) 407,393 301,150 391,066 283,029 Less: At 1 January 18(a) 301,150 262,019 283,029 234,821 Effect of movement in exchange rates 2,860 1,796 - -

109,103 40,927 108,037 48,208

(711,161) (659,087) (636,067) (589,702)



29. Management expenses


Takaful OperatorPersonnel expenses (including key management personnel) Directors’ remuneration - Salaries and other emoluments 5,468 3,907 5,383 3,550 - Fees 977 806 696 783 Shariah Committee remuneration - Emoluments 105 133 68 4 - Fees 304 205 168 193 Wages, salaries and others 117,379 102,811 97,098 83,506 Contributions to Employees’ Provident Fund 14,174 12,553 14,038 12,315

138,407 120,415 117,451 100,351

Depreciation of property and equipment 3 9,499 11,308 7,956 9,934 Auditors’ remuneration Company auditors - Statutory audit 572 547 572 547 - Other services 20 60 20 60 Other auditors - Statutory audit 121 96 - - License fees 220 191 154 191 Legal fees 192 251 123 181 Professional fees 15,956 13,612 14,530 12,600 Rental of properties 7,522 8,057 5,429 5,611 Rental of equipments 1,256 1,403 1,251 1,396 Repair and maintenance - property and equipment 8,302 9,221 7,472 7,647 Travelling expenses 3,241 3,968 2,914 3,557 Utilities 1,823 2,030 929 998 Communication costs 6,338 6,437 4,892 4,672 Advertising 3,455 4,347 1,754 2,677 Other expenses 39,388 26,096 36,340 20,812

97,905 87,624 84,336 70,883

Total management expenses 236,312 208,039 201,787 171,234

All management expenses are borne by the Takaful Operator.



29. Management expenses (continued)


Group / CompanyPersonnel expenses (including key management personnel) Directors’ remuneration - Salaries and other emoluments 5,468 3,907 5,383 3,550 - Fees 977 806 696 783 Shariah Committee remuneration - Emoluments 105 133 68 4 - Fees 304 205 168 193 Wages, salaries and others 116,781 102,334 96,500 83,029 Contributions to Employees’ Provident Fund 14,174 12,553 14,038 12,315

137,809 119,938 116,853 99,874

Depreciation of property and equipment 3 13,574 15,161 11,241 13,059 Auditors’ remuneration Company auditors - Statutory audit 572 547 572 547 - Other services 20 60 20 60 Other auditors - Statutory audit 121 96 - - License fees 220 191 154 191 Legal fees 192 251 123 181 Professional fees 15,956 13,612 14,530 12,600 Rental of properties 1,864 2,363 346 542 Rental of equipments 1,256 1,403 1,251 1,396 Repair and maintenance - property and equipment 8,302 9,221 7,472 7,647 Travelling expenses 3,241 3,968 2,914 3,557 Utilities 1,823 2,030 929 998 Communication costs 6,338 6,437 4,892 4,672 Advertising 3,455 4,347 1,754 2,677 Other expenses 39,388 26,096 36,338 20,812

96,322 85,783 82,536 68,939

Total management expenses 234,131 205,721 199,389 168,813

All management expenses are borne by the Takaful Operator.



30. Key management personnel compensation

The key management personnel compensation are as follows: Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000

Takaful Operator / Group / CompanyDirectors of the Company Executive: Salaries and other emoluments 5,067 3,541 5,049 3,458 Fees 66 3 - - Benefits-in-kind 91 15 91 7

5,224 3,559 5,140 3,465

Non-executive: Other emoluments 401 366 334 92 Fees 911 803 696 783 Benefits-in-kind 193 12 192 -

1,505 1,181 1,222 875

Other key management personnel: Short-term employment benefits 8,530 6,625 7,698 5,729 Benefits-in-kind 150 226 94 -

8,680 6,851 7,792 5,729

Total 15,409 11,591 14,154 10,069 The estimated monetary value of benefits-in-kind received by the Directors are RM284,000 (2012: RM27,000) and RM283,000 (2012: RM7,000) at Group and Company level respectively.



31. Other operating expenses Group Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

Takaful Operator Impairment of: - Property and equipment 3 - 197 - - - Investment in subsidiaries 5 - - 5,017 -- AFS financial assets 184 1,081 184 1,081 - HTM financial assets 210 - - -Write off of property and equipment 51 46 37 46 Qardh written off 12 11,458 3,542 - - Agency related expenses 5,836 3,646 5,836 3,646 Miscellaneous expenses 201 326 201 318

17,940 8,838 11,275 5,091 Family Takaful Impairment of: - Investment properties 4 - 26 - 26 - AFS financial assets 1,418 5,523 889 5,523 Bad debts written off 251 - 251 -Miscellaneous expenses 7,127 7,173 6,759 6,047

8,796 12,722 7,899 11,596

General Takaful Impairment of: - AFS financial assets 435 1,700 435 1,700 Bad debts written off 1,168 - 1,168 -Miscellaneous expenses 1,382 3,619 1,295 2,032

2,985 5,319 2,898 3,732

Group / Company Impairment of: - Property and equipment 3 6 848 - 479 - Investment properties 4 - 26 - 26 - Investment in subsidiaries 5 - - 5,017 -- AFS financial assets 7(d) 2,037 8,304 1,508 8,304 - HTM financial assets 7(d) 210 - - -Bad debts written off 1,419 - 1,419 -Write off of property and equipment 51 46 37 46 Agency related expenses 5,836 3,646 5,836 3,646 Miscellaneous expenses 8,670 10,819 8,215 8,098

18,229 23,689 22,032 20,599



32. Tax expense


Takaful Operator Recognised in profit or loss Current tax expense Malaysian - current 51,988 44,847 52,045 44,847

Total current tax recognised in profit or loss 51,988 44,847 52,045 44,847

Deferred tax benefits Deferred tax recognised in profit or loss 9 (8,727) (20,321) (10,495) (20,261)

Total tax expense 43,261 24,526 41,550 24,586

Reconciliation of tax expenseProfit for the year 132,949 101,590 138,881 103,294 Zakat 1,517 1,000 1,268 789 Total income tax expense 43,261 24,526 41,550 24,586

Profit before zakat and taxation 177,727 127,116 181,699 128,669

Income tax using Malaysian tax rate of 25% 43,491 31,779 45,425 32,167 Effect of tax rates in foreign jurisdictions 531 (826) - - Items not subject to tax (6,493) (11,955) (9,607) (12,839)Non deductible expenses 5,732 5,528 5,732 5,258

Tax expense 43,261 24,526 41,550 24,586

Recognised directly in equityDeferred tax AFS financial assets 9 839 939 839 939 Property and equipment - Revaluation reserve 9 - 450 - -

9 839 1,389 839 939



32. Tax expense (continued)


Group / Company Recognised in profit or loss Current tax expense Malaysian - current 51,988 44,847 52,045 44,847

Total current tax recognised in profit or loss 51,988 44,847 52,045 44,847

Deferred tax benefits Deferred tax recognised in profit or loss 9 (8,581) (20,533) (10,349) (20,473)

Total tax expense 43,407 24,314 41,696 24,374

Reconciliation of tax expense Profit for the year 134,380 100,144 139,318 102,657 Zakat 1,517 1,000 1,268 789 Total income tax expense 43,407 24,314 41,696 24,374

Profit before zakat and taxation 179,304 125,458 182,282 127,820

Income tax using Malaysian tax rate of 25% 43,637 31,365 45,571 31,955 Effect of tax rates in foreign jurisdictions 531 (826) - - Items not subject to tax (6,493) (11,753) (9,607) (12,839)Non deductible expenses 5,732 5,528 5,732 5,258

Tax expense 43,407 24,314 41,696 24,374

Recognised directly in equity Deferred tax AFS financial assets 9 839 939 839 939 Property and equipment - Revaluation reserve 9 (146) 662 (146) 212

9 693 1,601 693 1,151

The existing Section 60AA of the Income Tax Act 1967 (ITA) does not provide deduction on commission expense incurred by Shareholders’ Fund (also known as Takaful Operator).

Based on the recent amendment of Section 60AA of the Income Tax Act 1967 (ITA) pursuant to Finance Act 2014 (Act 761) gazetted on 23 January 2014, a tax deduction is only allowed on commission expenses incurred by Shareholders’ Fund in connection with the General Business. The deductibility of commission payment relating to family business was not provided in the Finance Act 2014.



32. Tax expense (continued)

The Malaysian Takaful Association has presented the issue on non-deductibility of commission expenses incurred by the Shareholders’ Fund in connection with Family business to Ministry of Finance (MOF) on 16 January 2014. The MOF noted the disparity of tax treatment on the said commission expenses between takaful and conventional insurance and is currently assessing / studying the matter to determine the appropriate tax treatment for the said commission expenses.

Based on the opinion of the Company’s tax agent, the Directors are of the view that the Group and the Company has reasonable ground to claim the deduction of the said commission expenses. Accordingly, the Group and the Company continues to deduct the said commission expenses in estimating the provision for income tax.

33. Other comprehensive income

<------------------------------------------------------------ Group ---------------------------------------------------------> 2013 2012 Tax Tax Before (expense)/ Net Before (expense)/ Net tax benefit of tax tax benefit of tax RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorItems that will not be reclassified subsequently to profit or loss

Revaluation of property and equipment - Gains arising during the year 2,808 146 2,954 6,874 (450) 6,424 - Realisation of revaluation surplus arising from disposal of property and equipment (575) - (575) - - -

2,233 146 2,379 6,874 (450) 6,424

Items that may be reclassified subsequently to profit or loss Foreign currency translation differences for foreign operations (7,314) - (7,314) (6,321) - (6,321)Fair value of available-for-sale financial assets - Gains arising during the year 14,119 (3,553) 10,566 13,384 (773) 12,611 - Reclassification adjustments for gain on disposal included in profit or loss (11,398) 2,714 (8,684) (9,540) (166) (9,706)

(4,593) (839) (5,432) (2,477) (939) (3,416)

(2,360) (693) (3,053) 4,397 (1,389) 3,008



33. Other comprehensive income (continued)

<------------------------------------------------------------- Group --------------------------------------------------------> 2013 2012 Tax Tax Before (expense)/ Net Before (expense)/ Net tax benefit of tax tax benefit of tax RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Family Takaful Items that may be reclassified subsequently to profit or loss Foreign currency translation differences for foreign operations (1,000) - (1,000) 17 - 17 Fair value of available-for-sale financial assets - Gains arising during the year 18,280 - 18,280 84,770 - 84,770 - Reclassification adjustments for gain on disposal included in profit or loss (117,783) - (117,783) (98,154) - (98,154)Other comprehensive income attributable to participants 99,303 - 99,303 13,641 - 13,641

(1,200) - (1,200) 274 - 274 General Takaful Items that may be reclassified subsequently to profit or loss Foreign currency translation differences for foreign operations (2,861) - (2,861) 1,476 - 1,476 Fair value of available-for-sale financial assets - Gains arising during the year 8,951 - 8,951 14,592 - 14,592 - Reclassification adjustments for gain on disposal included in profit or loss (15,860) - (15,860) (13,508) - (13,508)Other comprehensive income attributable to participants 8,066 - 8,066 (2,259) - (2,259)

(1,704) - (1,704) 301 - 301




<------------------------------------------------------------- Group --------------------------------------------------------> 2013 2012 Tax Tax Before (expense)/ Net Before (expense)/ Net tax benefit of tax tax benefit of tax RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Group Items that will not be reclassified subsequently to profit or loss Revaluation of property and equipment - Gains arising during the year 6,636 146 6,782 13,960 (450) 13,510 - Realisation of revaluation surplus arising from disposal of property and equipment (575) - (575) - - - Other comprehensive income attributable to participants (4,265) - (4,265) (6,010) (212) (6,222)

1,796 146 1,942 7,950 (662) 7,288

Items that may be reclassified subsequently to profit or loss Foreign currency translation differences for foreign operations (7,299) - (7,299) (6,036) - (6,036)Fair value of available-for-sale financial assets - Gains arising during the year 14,119 (3,553) 10,566 13,384 (773) 12,611 - Reclassification adjustments for gain on disposal included in profit or loss (11,398) 2,714 (8,684) (9,540) (166) (9,706)

(4,578) (839) (5,417) (2,192) (939) (3,131)

(2,782) (693) (3,475) 5,758 (1,601) 4,157




<------------------------------------------------------------ Company -----------------------------------------------------> 2013 2012 Tax Tax Before (expense)/ Net Before (expense)/ Net tax benefit of tax tax benefit of tax RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful Operator Item that will not be reclassified subsequently to profit or loss Revaluation of property and equipment - Gains arising during the year 126 - 126 56 - 56

126 - 126 56 - 56

Items that may be reclassified subsequently to profit or loss Fair value of available-for-sale financial assets - Gains arising during the year 14,211 (3,553) 10,658 12,675 (3,170) 9,505 - Reclassification adjustments for gain on disposal included in profit or loss (10,855) 2,714 (8,141) (8,921) 2,231 (6,690)

3,356 (839) 2,517 3,754 (939) 2,815

3,482 (839) 2,643 3,810 (939) 2,871

Family Takaful Items that may be reclassified subsequently to profit or loss Fair value of available-for-sale financial assets - Gains arising during the year 18,957 - 18,957 80,043 - 80,043 - Reclassification adjustments for gain on disposal included in profit or loss (108,707) - (108,707) (92,981) - (92,981)Other comprehensive income attributable to participants 89,750 - 89,750 12,938 - 12,938

- - - - - -




<--------------------------------------------------- Company -----------------------------------------------------> 2013 2012 Tax Tax Before (expense)/ Net Before (expense)/ Net tax benefit of tax tax benefit of tax RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General Takaful Items that may be reclassified subsequently to profit or loss Fair value of available-for-sale financial assets - Gains arising during the year 8,984 - 8,984 14,379 - 14,379 - Reclassification adjustments for gain on disposal included in profit or loss (15,657) - (15,657) (13,358) - (13,358)Other comprehensive income attributable to participants 6,673 - 6,673 (1,021) - (1,021)

- - - - - -

CompanyItems that will not be reclassified subsequently to profit or loss Revaluation of property and equipment - Gains arising during the year 1,139 146 1,285 5,866 (212) 5,654 Other comprehensive income attributable to participants (1,596) - (1,596) (4,961) - (4,961)

(457) 146 (311) 905 (212) 693

Items that may be reclassified subsequently to profit or loss Fair value of available-for-sale financial assets - Gains arising during the year 14,211 (3,553) 10,658 12,675 (3,170) 9,505 - Reclassification adjustments for gain on disposal included in profit or loss (10,855) 2,714 (8,141) (8,921) 2,231 (6,690)

3,356 (839) 2,517 3,754 (939) 2,815

2,899 (693) 2,206 4,659 (1,151) 3,508



34. Earnings per share - Group Basic earnings per ordinary share The calculation of basic earnings per ordinary share at 31 December 2013 was based on the profit attributable to ordinary shareholders of RM138,999,000 (2012: RM101,245,000) and a weighted average number of ordinary shares outstanding of 162,817,000 (2012: 162,817,000). Diluted earnings per ordinary share The calculation of diluted earnings per ordinary share at 31 December 2013 was based on the profit attributable to ordinary shareholders of RM138,999,000 (2012: RM101,245,000) and a weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, calculated as follows: Group 2013 2012 Unit’000 Unit’000

Weighted average number of ordinary shares (basic) 162,817 162,817 Effect of Restricted / Performance shares on issue 1,047 -

Weighted average number of ordinary shares (diluted) 163,864 162,817

35. Dividends Dividends recognised by the Company: Sen per Total share amount Date of (single tier) RM’000 payment

2013 Ordinary dividend paid, first interim for financial year 2013 12.00 19,538 4.10.2013Ordinary dividend paid, second interim for financial year 2012 30.00 48,845 23.12.2013

Total amount 68,383

2012 Ordinary dividend paid, final for financial year 2011 10.00 16,282 28.5.2012Ordinary dividend paid, first interim for financial year 2012 15.00 24,422 21.9.2012Ordinary dividend declared, second interim for financial year 2012 10.00 16,282 11.1.2013

Total amount 56,986

Subsequent to the end of the reporting period, the Directors proposed a final dividend as set out below. The dividends will be recognised in subsequent financial period upon approval by owners of the Company. Sen per Total share amount (single tier) RM’000

Final dividend proposed (ordinary) for financial year 2013 40.00 65,127



36. Operating segments Segment information is presented in respect of the Group’s geographical segments. This is based on the Group’s management and internal reporting structure. Inter-segment pricing, if any, is determined based on negotiated terms. The Group does not present information by business segment as it is principally engaged as an operator of Family and General takaful / retakaful businesses. The financial position and performance of the Family and General Takaful businesses managed by the Group and the Company have been disclosed separately within these financial statements.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise expenses, which are all incurred by Takaful Operator for the management of Takaful funds.

Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one year. Geographical segments

In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are also based on the geographical location of assets.

Malaysia Indonesia ConsolidatedGeographical segments RM’000 RM’000 RM’000

2013Total external revenue 1,537,994 175,012 1,713,006Inter-segment revenue - - -

Total segment revenue 1,537,994 175,012 1,713,006

Segment result / Profit before zakat and taxation 175,338 3,966 179,304Zakat (1,517)Tax expense (43,407)

Profit for the year 134,380

Segment assets by location of assets 6,529,042 395,501 6,924,543

Segment liabilities by location of liabilities 5,992,278 342,366 6,334,644

Capital expenditure by location of assets 6,589 933 7,522

Depreciation and amortisation 11,258 2,316 13,574

Non-cash expenses other than depreciation and amortisation 2,964 759 3,723



36. Operating segments (continued)

Malaysia Indonesia ConsolidatedGeographical segments RM’000 RM’000 RM’000

2012Total external revenue 1,408,284 199,250 1,607,534 Inter-segment revenue - - -

Total segment revenue 1,408,284 199,250 1,607,534

Segment result / Profit before zakat and taxation 123,780 1,678 125,458

Zakat (1,000)Tax expense (24,314)

Profit for the year 100,144

Segment assets by location of assets 5,946,218 425,426 6,371,644

Segment liabilities by location of liabilities 5,478,471 367,812 5,846,283

Capital expenditure by location of assets 6,891 583 7,474

Depreciation and amortisation 13,095 2,066 15,161

Non-cash expenses other than depreciation and amortisation 8,376 - 8,376

37. Risk management framework

The Board with the assistance of the management team is responsible for the Risk Management Framework within the Group. The Board delegates the responsibility of oversight and monitoring of management’s initiatives in managing key risk areas and ensure the functioning of the risk management processes to the Board Risk Committee (BRC). The BRC is supported by the Management Risk Committee (MRC) who is represented by the respective heads of divisions and headed by the Group Managing Director.

The Group established the Operational Risk Management (ORM) Framework to ensure an ongoing process of identifying, evaluating, monitoring and managing the significant risk exposures surrounding its business operations.

By executing the risk management process through robust controls, monitoring and responding to potential risks, the Group is able to mitigate risks to within the risk appetite of the Board. Operational Loss Incidences reporting based on the Basel II are reported to BRC and the Board to act as a gauge on the effectiveness of the ORM in place.

Whistle Blowing Policy & Fraud and Integrity Policy, Shariah Governance Framework and Assets and Liabilities Management Framework are also in place to provide basic structure and further strengthen the existing control mechanism underlying the business activities.

Business Continuity Management is consistently practiced in accordance with Bank Negara Malaysia guidelines. The Group tested the Business Continuity Plan annually to safeguard the lives of the employees and others in the office premises and tested the Disaster Recovery Plan twice a year to ensure the critical IT systems are up and running at all times.



37. Risk management framework (continued)

In Financial Risk, the Group has a Risk and Capital Management Framework to maintain financial resilience and stability, whilst having the flexibility of pursuing strategic business opportunities to optimize shareholder value.

Stress Testing is conducted twice a year by the Actuarial Division together with Investment Department and Risk Management Department to ensure the Group’s financial standing is secure under several risk scenarios.

Asset and Liability Management Framework is also in place to enhance Financial Risk Management and facilitate in the Group’s and the Company’s investment strategy.

38. Takaful risk management

(a) Family Takaful Fund

The Family Takaful contracts consist of:

(i) Family Takaful non-investment-linked contracts

The Family Takaful non-investment-linked contracts are mainly credit related takaful products, group takaful schemes, yearly renewable individual ordinary medical plans, regular contribution individual ordinary plans and annuity plans. The main product types are Mortgage Reducing Term Takaful (MRTT), Group Credit Takaful, Group Term Takaful and Group Medical Takaful.

(ii) Family Takaful investment-linked contracts

The Family Takaful investment-linked contracts are mainly made up of regular contribution investment-linked products and a single contribution structured investment-linked plan. The main products are Takaful myInvest and Takaful myGenLife.

The key coverage for the Family Takaful contracts

The key coverage for the Family Takaful contracts are death, total and permanent disability, hospital and surgical benefits, personal accident benefits, daily hospitalisation cash allowance benefits, dread disease benefits, waiver of contribution benefits and survival benefits (for annuity).

Concentration of Family Takaful risk

The following gives details of the Group’s and the Company’s concentration of risks based on outstanding actuarial reserves by main product categories:



38. Takaful risk management (continued)

(a) Family Takaful Fund (continued)

<------------------------------ Group ---------------------> Gross Retakaful Net Note RM’000 RM’000 RM’000

2013 Term 824,558 (77,821) 746,737 Endowment 1,367,608 - 1,367,608Mortgage 1,187,668 (70,519) 1,117,149 Annuity 328,985 - 328,985

Total Family actuarial liabilities 18(c) 3,708,819 (148,340) 3,560,479

2012 Term 568,419 (19,433) 548,986 Endowment 1,367,038 - 1,367,038 Mortgage 1,020,053 (44,423) 975,630 Annuity 319,425 - 319,425


<------------------------- Company----------------------> Gross Retakaful Net Note RM’000 RM’000 RM’000

2013 Term 823,259 (77,821) 745,438Endowment 1,198,261 - 1,198,261 Mortgage 1,152,418 (64,419) 1,087,999 Annuity 324,495 - 324,495


2012 Term 515,922 (19,433) 496,489 Endowment 1,196,245 - 1,196,245 Mortgage 1,030,053 (38,728) 991,325 Annuity 319,425 - 319,425


Key assumptions

Reserves for all plans were valued on a basis that the Appointed Actuary considers adequate and appropriate, and in-line with the valuation basis set out by BNM in respect of the Guidelines on Valuation Basis for Liabilities of Family Takaful Business (BNM/RH/GL 004-20).





Key assumptions (continued)

The key assumptions to which the estimation of actuarial liabilities is particularly sensitive are as follows: - Mortality and morbidity rates

This is significant for contracts with significant coverage for death, total permanent disability and critical illness and the increase in the mortality or morbidity rates would have direct impact on the liability.

- Discount rate

As the liabilities are the present value of future cash flows, both income and outgo, a decrease in discount rate would have an increasing impact on the liabilities and vice-versa.

- Surrender rate

This is only applicable to long-term products, where when the rate is reduced (products with PIF) or increased (products without PIF), the impact is an increase of the liability.

Sensitivities

A summary of key assumptions used for sensitivity analysis is as below: <----------------Group and Company------------------> Mortality and morbidity Discount Surrender rates rate rate

2013 Endowment +10%(i) -1% -20%Mortgage +10%(i) -1% -20%Investment-linked +10%(i) -1% -20%

2012 Endowment +10%(i) -1% -20%Mortgage +10%(i) -1% -20%Investment-linked +10%(i) -1% -20% (i) 10% Industry mortality and morbidity experience tables M8388 and M9903





Sensitivities (continued)

The analysis below is performed for reasonably possible movements in each of the key assumptions with all other assumptions held constant, showing the impact on gross and net liabilities, and unallocated surplus. The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear. Sensitivity information will also vary according to the current economic assumptions.

<------------------------------------------- Group ----------------------------------> Impact on Impact on Impact on Change in gross net unallocated assumptions liabilities liabilities surplus

RM’000 RM’000 RM’000

2013Mortality / morbidity rate +10% 180,259 135,607 (135,607)Discount rate -1% 146,481 130,140 (130,140)Surrender rate -20% 49,629 42,032 (42,032)

2012 Mortality / morbidity rate +10% 134,205 106,949 (106,949)Discount rate -1% 130,517 120,713 (120,713)Surrender rate -20% 14,377 11,270 (11,270)

<----------------------------------------- Company -------------------------------> Impact on Impact on Impact on Change in gross net unallocated assumptions liabilities liabilities surplus

RM’000 RM’000 RM’000

2013Mortality / morbidity rate +10% 127,987 91,219 (91,219)Discount rate -1% 98,881 88,809 (88,809)Surrender rate -20% 2,457 976 (976)

2012 Mortality / morbidity rate +10% 79,015 59,266 (59,266)Discount rate -1% 80,342 76,390 (76,390)Surrender rate -20% 14,377 11,270 (11,270)




(b) General Takaful Fund The General Takaful contracts consist of fire, motor, personal accident, workmen’s compensation and employers’ liability, liabilities and engineering and others.

Concentration of General Takaful risk The table below sets out the concentration of General Takaful gross contribution by type of business. <----------------------------- Group ----------------------> Gross Retakaful Net Note RM’000 RM’000 RM’000

2013Fire 154,544 (80,917) 73,627 Motor 187,435 (30,647) 156,788 Marine 5,134 (2,796) 2,338 Miscellaneous 81,293 (26,987) 54,306

Gross contribution 23 428,406 (141,347) 287,059

2012 Fire 120,820 (65,550) 55,270 Motor 188,568 (4,543) 184,025 Marine 12,675 (4,292) 8,383 Miscellaneous 79,374 (31,303) 48,071

Gross contribution 23 401,437 (105,688) 295,749 <------------------------ Company ---------------------> Gross Retakaful Net Note RM’000 RM’000 RM’000








(b) General Takaful Fund (continued)

Key assumptions

The key assumptions underlying the estimation of liabilities is that the Group’s and the Company’s future claims development will follow a similar pattern to past claims development experience, including average claim cost, average claim frequency and business mix for each accident year.

Additional qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example, isolated occurrences, changes in market factors such as public attitude to claiming, economic conditions, as well as internal factors such as portfolio mix, underwriting policy, policy conditions and claims handling procedures.

Other key circumstances affecting the reliability of assumptions include delays in settlement and changes in foreign currency rates.

Sensitivities

The General Takaful claim liabilities are sensitive to the above key assumptions and change in these assumptions may impact the liabilities and operating surplus of the General Takaful Fund significantly. It has not been possible to quantify the sensitivity of certain assumptions, such as, legislative changes or uncertainty in the estimation process.

The analysis below is performed for reasonably possible movements in key assumptions with all other assumptions held constant, showing the impact on gross and net liabilities and operating surplus. The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear.

The key assumptions to which the estimation of actuarial liabilities is particularly sensitive are as follows:

- Fire loss ratio for latest accident year

This is significant as Fire portfolio is one of the largest under general business, a change in loss ratio estimate will impact the liabilities significantly.

- Motor Act loss ratio for latest accident year

Motor Act business is long tailed in nature and need years before the claim experience matures. A significant impact may result if the ultimate experience differs from current estimation.

- Average claim cost

Reserves are based on assumption that historical average claim cost is reflective of the future experience. Increase in average cost will increase future liabilities.






- Average claim frequency

Reserves are based on assumption that historical average claim number in each accident year reflects the future experience. A change in average number of claims will impact the future liabilities.

- Average claim settlement period

Reserves are based on assumption that claim settlement period will be stable over years. A change in claim handling practice will affect the claim cost and the future liabilities.

Below shows the summary of changes in key assumptions and the impact to the gross and net claim liabilities, and the operating surplus.

<------------------------------------------ Group -----------------------------------> Impact on Impact on Impact on Change in gross net unallocated assumptions liabilities liabilities surplus

RM’000 RM’000 RM’000

2013Fire loss ratio for AY 2013 +10% 14,351 5,884 (5,884)Motor Act loss ratio for AY 2013 +10% 2,783 2,478 (2,478)Average claim cost +10% 58,903 28,075 (28,075)Average claim frequency +10% 31,943 20,651 (20,651)Average claim Increase by settlement period 6 months 11,675 7,541 (7,541) 2012 Fire loss ratio for AY 2012 +10% 15,261 5,244 (5,244)Motor Act loss ratio for AY 2012 +10% 2,828 2,810 (2,810)Average claim cost +10% 56,393 29,231 (29,231)Average claim frequency +10% 28,896 21,291 (21,291)Average claim Increase by settlement period 6 months 11,270 7,934 (7,934)






<------------------------------------ Company --------------------------------> Impact on Impact on Impact on Change in gross net unallocated assumptions liabilities liabilities surplus

RM’000 RM’000 RM’000

2013Fire loss ratio for AY 2013 +10% 13,202 5,380 (5,380)Motor Act loss ratio for AY 2013 +10% 2,468 2,211 (2,211)Average claim cost +10% 57,014 27,603 (27,603)Average claim frequency +10% 29,865 20,132 (20,132)Average claim Increase by settlement period 6 months 10,249 7,074 (7,074)

2012Fire loss ratio for AY 2012 +10% 13,734 4,642 (4,642)Motor Act loss ratio for AY 2012 +10% 2,815 2,798 (2,798)Average claim cost +10% 54,059 28,541 (28,541)Average claim frequency +10% 26,480 20,576 (20,576)Average claim Increase by settlement period 6 months 9,656 7,055 (7,055)

Claims development table

The following tables show the estimate of cumulative incurred claims, including both claims notified and IBNR for each successive accident year at the end of reporting period, together with cumulative payments to-date.

In setting provisions for claims, the Group and the Company give consideration to the probability and magnitude of future experience being more adverse than assumed and exercise the degree of caution in setting reserves when there is considerable uncertainty. In general, the uncertainty associated with the ultimate claims experience in an accident year is greatest when the accident year is at an early stage of development and the margin necessary to provide the necessary confidence in adequacy of provision is relatively at its highest. As claims develop and the ultimate cost of claims becomes more certain, the relative level of margin maintained should decrease..



38.

Taka

ful r

isk

man

agem

ent (

cont

inue

d) (b

) G

ener

al Ta

kafu

l Fun

d (c

ontin

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G

ross

Gen

eral

Taka

ful c

ontr

act l

iabi

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s for

201

3 (G

roup

):

Be

fore

20

06

2007

20

08

2009

20

10

2011

20

12

2013

To

tal

Acc

iden

t yea

r RM

’000

RM

’000

RM

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RM

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(157

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(221

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) (1

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(113

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38.

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To

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(247

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(60,

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8)

(143

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(101

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Two

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s lat

er

(263

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4,84

3)

(74,

740)

(9

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(158

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-

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(2

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214)

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-

Four

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ter

(289

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07,2

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(87,

523)

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F ive

yea

rs la

ter

(294

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) (1

14,4

86)

(88,

292)

-

-

-

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-

Si

x y e

ars l

ater

(2

96,7

38)

(114

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-

-

-

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-

Se

ven

year

s lat

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(297

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-

-

-

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-

-

C u

mul

ativ

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ymen

ts to

-dat

e (2

97,4

10)

(114

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2)

(98,

469)

(1

71,5

55)

(144

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) (1

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19)

(48,

340)

(1

,065

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)

Net

Gen

eral

Tak

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con

trac

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bilit

ies

7,7

03

5,3

56

5,0

14

6,0

11

26,

030

3

4,48

0

67,

385

1

08,2

75

260

,254

Addi

tiona

l ris

k m

argi

n

33

,993

Effec

t of m

ovem

ent i

n ex

chan

ge ra

tes

(1,0

50)

Net

Gen

eral

Tak

aful

con

trac

t lia

bilit

ies p

er

finan

cial

pos

itio

n (N

ote

18(a

))

2

93,1

97



38.

Taka

ful r

isk

man

agem

ent (

cont

inue

d) (b

) G

ener

al Ta

kafu

l Fun

d (c

ontin

ued)

G

ross

Gen

eral

Taka

ful c

ontr

act l

iabi

litie

s for

201

3 (C

ompa

ny):

Be

fore

20

06

2007

20

08

2009

20

10

2011

20

12

2013

To

tal

Acc

iden

t yea

r RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

At e

nd o

f acc

iden

t yea

r 5

22,3

61

347,

965

19

7,82

6

114,

835

22

4,75

8

220,

483

21

5,61

5

331,

800

One

yea

r lat

er

582,

768

29

2,05

8

148,

112

11

3,47

3

287,

375

23

2,45

4

209,

161

- Tw

o ye

ars l

ater

54

5,80

2

250,

498

15

2,04

6

154,

775

27

7,64

3

215,

580

-

- Th

ree

year

s lat

er

545,

411

23

9,11

4

174,

438

13

9,63

9

248,

672

-

-

- Fo

ur y

ears

late

r 52

6,87

8

236,

734

16

2,56

7

123,

689

-

-

-

- Fi

ve y

ears

late

r 54

6,94

7

235,

469

14

6,91

5 -

-

-

-

-

Six

year

s lat

er

541,

468

22

8,80

1 -

-

-

-

-

-

Seve

n ye

ars l

ater

54

1,10

1 -

-

-

-

-

-

-

Curr

ent e

stim

ate

of c

umul

ativ

e cl

aim

s inc

urre

d 5

41,1

01

228

,801

1

46,9

15

123

,689

2

48,6

72

215,

580

2

09,1

61

331

,800

2,

045,

719

At e

nd o

f acc

iden

t yea

r (2

82,8

34)

(50,

179)

(3

6,88

8)

(37,

036)

(7

9,90

0)

(48,

450)

(4

3,10

7)

(47,

866)

One

yea

r lat

er

(407

,606

) (1

64,2

74)

(94,

478)

(9

0,45

3)

(148

,043

) (1

13,6

94)

(99,

559)

-

T wo

year

s lat

er

(440

,999

) (1

87,4

83)

(127

,247

) (1

02,7

85)

(178

,214

) (1

44,4

54)

-

-T h

ree

year

s lat

er

(458

,574

) (2

02,3

64)

(135

,664

) (1

06,4

53)

(191

,372

) -

-

-

Four

yea

rs la

ter

(520

,877

) (2

09,3

24)

(139

,549

) (1

08,6

01)

-

-

-

-F i

ve y

ears

late

r (5

31,8

18)

(214

,730

) (1

40,8

65)

-

-

-

-

-Si

x y e

ars l

ater

(5

33,5

66)

(216

,255

)

-

-

-

-

-Se

ven

year

s lat

er

(537

,669

) -

-

-

-

-

-

-

C um

ulat

ive

paym

ents

to-d

ate

(537

,669

) (2

16,2

55)

(14

0,86

5)

(108

,601

) (

191,

372)

(1

44,4

54)

(99,

559)

(4

7,86

6)

(1,4

86,6

41)

Gro

ss G

ener

al T

akaf

ul c

ontr

act l

iabi

litie

s 3

,432

1

2,54

6

6,0

50

15,

088

5

7,30

0

71,

126

1

09,6

02

283,

934

5

59,0

78

Addi

tiona

l ris

k m

argi

n

74

,213

Gro

ss G

ener

al T

akaf

ul c

ontr

act l

iabi

litie

s per

fin

anci

al p

osit

ion

(Not

e 18

(a))

633

,291



38.

Taka

ful r

isk

man

agem

ent (

cont

inue

d) (b

) G

ener

al Ta

kafu

l Fun

d (c

ontin

ued)

N

et G

ener

al Ta

kafu

l con

trac

t lia

bilit

ies f

or 2

013

(Com

pany

):

B e

fore

20

06

2007

20

08

2009

20

10

2011

20

12

2013

To

tal

Acc

iden

t yea

r RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

RM

’000

A t e

nd o

f acc

iden

t yea

r 2

72,6

15

94,

925

9

1,33

8

90,

320

1

93,7

64

164

,771

1

55,7

01

145,

951

One

yea

r lat

er

282

,839

1

06,6

23

74,

215

8

9,55

7

194

,943

1

66,9

38

155

,158

-

Two

year

s lat

er

277

,265

1

02,9

78

76,

563

9

3,92

4

184

,831

1

62,7

45

-

-Th

ree

year

s lat

er

272

,773

1

01,2

30

81,

426

8

5,74

5

175

,340

-

-

-

Four

yea

rs la

ter

271

,419

9

8,65

5

79,

913

8

2,74

9

-

-

-

-Fi

ve y

ears

late

r 2

69,6

16

104

,183

7

8,15

3

-

-

-

-

-Si

x ye

ars l

ater

2

69,0

14

102

,967

-

-

-

-

-

-

Seve

n ye

ars l

ater

2

68,3

10

-

-

-

-

-

-

-Cu

rren

t est

imat

e of

cum

ulat

ive

clai

ms i

ncur

red

268

,310

1

02,9

67

78,

153

8

2,74

9

175

,340

1

62,7

45

155

,158

1

45,9

51

1,1

71,3

73

At e

nd o

f acc

iden

t yea

r (1

84,2

01)

(37,

770)

(2

2,61

8)

(29,

194)

(6

8,05

5)

(44,

725)

(4

0,05

4)

(41,

956)

One

yea

r lat

er

(223

,534

) (7

3,38

7)

(49,

154)

(6

2,39

0)

(125

,883

) (1

04,5

75)

(89,

419)

-

T wo

year

s lat

er

(236

,905

) (8

1,61

2)

(62,

879)

(7

3,27

1)

(140

,510

) (1

28,5

83)

-

-T h

ree

year

s lat

er

(247

,069

) (8

8,77

1)

(70,

969)

(7

6,03

3)

(150

,249

) -

-

-

Four

yea

rs la

ter

(260

,712

) (9

2,65

2)

(74,

198)

(7

7,27

7)

-

-

-

-F i

ve y

ears

late

r (2

63,5

30)

(99,

887)

(7

4,96

4)

-

-

-

-

-Si

x y e

ars l

ater

(2

65,6

20)

(100

,188

) -

-

-

-

-

-

Seve

n ye

ars l

ater

(2

66,2

73)

-

-

-

-

-

-

-C u

mul

ativ

e pa

ymen

ts to

-dat

e (2

66,2

73)

(100

,188

) (7

4,96

4)

(77,

277)

(1

50,2

49)

(1

28,5

83)

(89,

419)

(4

1,95

6)

(928

,909

)

Net

Gen

eral

Tak

aful

con

trac

t lia

bilit

ies

2,03

7 2,

779

3,18

9 5,

472

25,0

91

34,1

62

65,7

39

103,

995

242,

464

Addi

tiona

l ris

k m

argi

n

33

,382

Net

Gen

eral

Tak

aful

con

trac

t lia

bilit

ies p

er

finan

cial

pos

itio

n (N

ote

18(a

))

27

5,84

6



39. Financial instruments

39.1 Categories of financial instruments The table below provides an analysis of financial instruments categorised as follows: (a) Loans and receivables (LAR);(b) Fair value through profit or loss (FVTPL) - Held for trading (HFT);(c) Available-for-sale financial assets (AFS);(d) Held-to-maturity financial assets (HTM); and (e) Financial liabilities measured at amortised cost (FL). <----------------------------------------------------- Group ---------------------------------------------> Carrying LAR/ amount (FL) FVTPL AFS HTM2013 RM’000 RM’000 RM’000 RM’000 RM’000

Financial assets Takaful Operator Other investments 484,169 - 6,614 475,590 1,965 Loans and receivables, excluding takaful receivables 155,072 155,072 - - -Cash and cash equivalents 89,171 89,171 - - -

728,412 244,243 6,614 475,590 1,965

Family Takaful Other investments 3,642,815 - 181,689 3,094,385 366,741Retakaful assets 2,278 2,278 - - -Loans and receivables, excluding takaful receivables 521,902 521,902 - - -Takaful receivables 68,197 68,197 - - -Cash and cash equivalents 265,736 265,736 - - -

4,500,928 858,113 181,689 3,094,385 366,741 General Takaful Other investments 605,251 - - 569,349 35,902Retakaful assets 291,300 291,300 - - -Loans and receivables, excluding takaful receivables 89,541 89,541 - - -Takaful receivables 48,959 48,959 - - -Cash and cash equivalents 75,712 75,712 - - -

1,110,763 505,512 - 569,349 35,902

Group Other investments 4,694,140 - 188,303 4,101,229 404,608Retakaful assets 293,578 293,578 - - -Loans and receivables, excluding takaful receivables 711,976 711,976 - - -Takaful receivables 117,156 117,156 - - - Cash and cash equivalents 430,619 430,619 - - -

6,247,469 1,553,329 188,303 4,101,229 404,608



39. Financial instruments (continued)

39.1 Categories of financial instruments (continued) <-------------------------------------------------- Company --------------------------------------------> Carrying LAR/ amount (FL) FVTPL AFS HTM2013 RM’000 RM’000 RM’000 RM’000 RM’000

Financial assetsTakaful OperatorOther investments 468,467 - - 468,467 -Loans and receivables, excluding takaful receivables 130,603 130,603 - - -Cash and cash equivalents 45,773 45,773 - - -

644,843 176,376 - 468,467 -

Family Takaful Other investments 3,451,164 - 67,506 3,022,304 361,354Retakaful assets 1,568 1,568 - - -Loans and receivables, excluding takaful receivables 495,498 495,498 - - -Takaful receivables 62,835 62,835 - - -Cash and cash equivalents 204,687 204,687 - - -

4,215,752 764,588 67,506 3,022,304 361,354

General Takaful Other investments 600,343 - - 567,669 32,674Retakaful assets 277,129 277,129 - - -Loans and receivables, excluding takaful receivables 75,503 75,503 - - -Takaful receivables 40,511 40,511 - - -Cash and cash equivalents 62,779 62,779 - - -

1,056,265 455,922 - 567,669 32,674

Company Other investments 4,481,879 - 67,506 4,020,345 394,028 Retakaful assets 278,697 278,697 - - - Loans and receivables, excluding takaful receivables 663,657 663,657 - - -Takaful receivables 103,346 103,346 - - -Cash and cash equivalents 313,239 313,239 - - -

5,840,818 1,358,939 67,506 4,020,345 394,028




39.1 Categories of financial instruments (continued)

<----------------------------------------------------- Group ---------------------------------------------> Carrying LAR/ amount (FL) FVTPL AFS HTM2013 RM’000 RM’000 RM’000 RM’000 RM’000

Financial liabilities Takaful Operator Other payables (91,367) (91,367) `- - -

Family Takaful Qardh payables (23,028) (23,028) - - - Provision for outstanding claims (40,150) (40,150) - - - Takaful payables (25,859) (25,859) - - - Other payables (123,787) (123,787) - - -

(212,824) (212,824) - - -

General Takaful Qardh payables (25,634) (25,634) - - - Provision for outstanding claims (433,215) (433,215) - - - Takaful payables (49,569) (49,569) - - -Other payables (67,261) (67,261) - - -

(575,679) (575,679) - - -

Group Provision for outstanding claims (473,365) (473,365) - - -Takaful payables (75,428) (75,428) - - -Other payables (277,876) (277,876) - - -

(776,669) (776,669) - - -





<--------------------------------------------------- Company -------------------------------------------> Carrying LAR/ amount (FL) FVTPL AFS HTM2013 RM’000 RM’000 RM’000 RM’000 RM’000

Financial liabilities Takaful Operator Other payables (66,866) (66,866) - - -

Family Takaful Provision for outstanding claims (26,139) (26,139) - - -Takaful payables (22,725) (22,725) - - -Other payables (118,256) (118,256) - - -

(167,120) (167,120) - - -

General Takaful Provision for outstanding claims (407,039) (407,039) - - -Takaful payables (48,449) (48,449) - - -Other payables (65,099) (65,099) - - -

(520,587) (520,587) - - -

Company Provision for outstanding claims (433,178) (433,178) - - -Takaful payables (71,174) (71,174) - - -Other payables (212,274) (212,714) - - -

(716,626) (716,626) - - -





<------------------------------------------------------- Group --------------------------------------------> Carrying LAR/ amount (FL) FVTPL AFS HTM2012 RM’000 RM’000 RM’000 RM’000 RM’000

Financial assets Takaful Operator Other investments 394,213 - 634 391,994 1,585 Loans and receivables, excluding takaful receivables 128,171 128,171 - - - Cash and cash equivalents 102,972 102,972 - - -

625,356 231,143 634 391,994 1,585

Family Takaful Other investments 3,485,015 - 219,665 3,012,079 253,271 Retakaful assets 3,707 3,707 - - - Loans and receivables, excluding takaful receivables 441,121 441,121 - - - Takaful receivables 68,472 68,472 - - - Cash and cash equivalents 288,172 288,172 - - -

4,286,487 801,472 219,665 3,012,079 253,271

General Takaful Other investments 601,339 - - 565,764 35,575 Retakaful assets 221,036 221,036 - - - Loans and receivables, excluding takaful receivables 116,276 116,276 - - - Takaful receivables 25,541 25,541 - - - Cash and cash equivalents 61,108 61,108 - - -

1,025,300 423,961 - 565,764 35,575 Group Other investments 4,439,587 - 220,299 3,928,857 290,431 Retakaful assets 224,743 224,743 - - - Loans and receivables, excluding takaful receivables 619,123 619,123 - - - Takaful receivables 94,013 94,013 - - - Cash and cash equivalents 452,252 452,252 - - -

5,829,718 1,390,131 220,299 3,928,857 290,431






Financial assets Takaful Operator Other investments 384,209 - - 384,209 - Loans and receivables, excluding takaful receivables 108,187 108,187 - - - Cash and cash equivalents 49,017 49,017 - - -

541,413 157,204 - 384,209 -

Family Takaful Other investments 3,278,123 - 113,682 2,922,533 241,908 Retakaful assets 2,854 2,854 - - - Loans and receivables, excluding takaful receivables 425,074 425,074 - - - Takaful receivables 62,893 62,893 - - - Cash and cash equivalents 211,248 211,248 - - -

3,980,192 702,069 113,682 2,922,533 241,908

General Takaful Other investments 596,164 - - 563,442 32,722 Retakaful assets 204,619 204,619 - - - Loans and receivables, excluding takaful receivables 105,444 105,444 - - - Takaful receivables 17,605 17,605 - - - Cash and cash equivalents 42,515 42,515 - - -

966,347 370,183 - 563,442 32,722

Company Other investments 4,217,516 - 113,682 3,829,204 274,630 Retakaful assets 207,473 207,473 - - - Loans and receivables, excluding takaful receivables 584,343 584,343 - - - Takaful receivables 80,498 80,498 - - - Cash and cash equivalents 302,780 302,780 - - -

5,392,610 1,175,094 113,682 3,829,204 274,630





<------------------------------------------------------ Group --------------------------------------------> Carrying LAR/ amount (FL) FVTPL AFS HTM2012 RM’000 RM’000 RM’000 RM’000 RM’000


Family Takaful Qardh payables (10,398) (10,398) - - - Provision for outstanding claims (28,387) (28,387) - - - Takaful payables (20,501) (20,501) - - - Other payables (156,434) (156,434) - - -

(215,720) (215,720) - - -

General Takaful Qardh payables (23,888) (23,888) - - - Provision for outstanding claims (389,557) (389,557) - - - Takaful payables (22,625) (22,625) - - - Other payables (61,492) (61,492) - - -

(497,562) (497,562) - - -

Group Provision for outstanding claims (417,944) (417,944) - - - Takaful payables (43,126) (43,126) - - - Other payables (236,013) (236,013) - - -

(697,083) (697,083) - - -







Family Takaful Provision for outstanding claims (25,386) (25,386) - - - Takaful payables (15,318) (15,318) - - - Other payables (145,157) (145,157) - - -

(185,861) (185,861) - - -

General Takaful Provision for outstanding claims (356,014) (356,014) - - - Takaful payables (20,505) (20,505) - - - Other payables (60,303) (60,303) - - -

(436,822) (436,822) - - -

Company Provision for outstanding claims (381,400) (381,400) - - - Takaful payables (35,823) (35,823) - - - Other payables (223,778) (223,778) - - -

(641,001) (641,001) - - -




39.2 Net gains and losses arising from use of financial instruments Group Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

Takaful OperatorNet gains / (losses) arising on: FVTPL financial assets - recognised in profit or loss (68) - - - AFS financial assets - recognised in other comprehensive income 7(d) 2,721 3,844 3,356 3,754 - recognised in profit or loss 28,155 21,572 27,510 20,953 30,876 25,416 30,866 24,707 HTM financial assets (89) 466 - - LAR (4,784) 3,022 4,700 4,300

25,935 28,904 35,566 29,007

Family Takaful Net gains / (losses) arising on: FVTPL financial assets - recognised in profit or loss 9,980 20,846 10,833 8,727 AFS financial assets - recognised in participants’ fund 18(c) (99,503) (13,384) (89,750) (12,938) - recognised in profit or loss 247,873 225,834 238,575 216,614 148,370 212,450 148,825 203,676 HTM financial assets 14,299 10,838 13,434 10,838 LAR 25,727 23,491 21,574 19,215

198,376 267,625 194,666 242,456

General Takaful Net gains / (losses) arising on: AFS financial assets - recognised in participants’ fund 18(c) (6,908) 1,084 (6,673) 1,021 - recognised in profit or loss 39,413 35,900 39,210 35,750 32,505 36,984 32,537 36,771 HTM financial assets 1,503 1,416 1,232 1,235 LAR 4,885 8,225 4,129 7,542

38,893 46,625 37,898 45,548 Group / Company Net gains / (losses) arising on: FVTPL financial assets - recognised in profit or loss 9,912 20,846 10,833 8,727 AFS financial assets - recognised in other comprehensive income 7(d) 2,721 3,844 3,356 3,754 - recognised in participants’ fund 18(c) (106,411) (12,300) (96,423) (11,917) - recognised in profit or loss 315,286 283,306 305,140 273,317 211,596 274,850 212,073 265,154 HTM financial assets 15,713 12,720 14,666 12,073 LAR 37,286 38,280 30,403 31,057

274,507 346,696 267,975 317,011




39.3 Financial risk management

The Group and the Company have exposure to the following risks arising from its use of financial instruments:

- Credit risk- Liquidity risk - Market risk (currency risk, profit rate risk, price risk)- Operational risk

39.4 Credit risk

Credit risk is the potential financial loss resulting from the failure of a customer, an intermediary or counterparty to settle its financial and contractual obligations to the Group and the Company as and when they fall due.

The Group’s and the Company’s portfolio of Islamic debt securities, and to a lesser extent short-term and other investments, are subject to credit risk. This risk is defined as the potential loss resulting from adverse changes in a borrower’s ability to repay the debt. The Group’s and the Company’s objective is to earn competitive relative returns by investing in a diversified portfolio of securities. Management has an investment credit risk policy in place. Limits are established to manage credit quality and concentration risk.

The Group and the Company have takaful and other receivables balances that are subject to credit risk. Among the most significant of these are retakaful recoveries. To mitigate the risk of the counterparties not paying the amount due, the Group and the Company have established certain business and financial guidelines for retakaful approval, incorporating ratings by major agencies and considering currently available market information. The Group and the Company also periodically review the financial stability of retakaful companies from public and other sources and the settlement trend of amounts due from retakaful companies.

Cash and deposits are generally placed with banks and financial institutions licensed under the Banking and Financial Institutions Act 1989 (repealed on 30 June 2013), Financial Services Act 2013 (effective on 30 June 2013), the Islamic Banking Act 1983 (repealed on 30 June 2013) and Islamic Financial Services Act 2013 (effective on 30 June 2013) which are regulated by Bank Negara Malaysia.

The Group and the Company manage individual exposures as well as concentration of credit risks. At end of the reporting period, there were no significant concentration of credit risks, other than investments in Islamic debts securities issued by single issuer amounted to RM174,999,000 (2012: RM296,001,250) and investment in a Institutional Trust Account amounted to RM298,897,000 (2012: 284,891,000).




39.4 Credit risk (continued)

Credit exposure

The table below shows the maximum exposure to credit risk for the components recognised in the statements of financial position.


Takaful OperatorAFS financial assets Institutional Trust Account 64,268 61,270 64,268 61,270 Islamic debt securities 240,102 200,588 239,235 199,576 Malaysian Government Islamic papers 10,013 20,155 10,013 20,155 FVTPL financial assets Islamic debt securities 4,041 634 - - HTM financial assets Islamic debt securities 1,965 1,585 - - LAR Loans and receivables, excluding takaful receivables 155,072 128,171 130,603 108,187 Cash and cash equivalents 89,171 102,972 45,773 49,017

564,632 515,375 489,892 438,205

Family TakafulAFS financial assets Institutional Trust Account 196,482 187,332 196,482 187,332 Islamic debt securities 1,659,979 1,768,168 1,654,367 1,758,563 Malaysian Government Islamic papers 383,832 550,388 383,832 550,388 FVTPL financial assets Islamic debt securities 84,989 58,340 16,267 14,267 HTM financial assets Islamic debt securities 254,024 140,490 248,637 129,127 Malaysian Government Islamic papers 112,717 112,781 112,717 112,781 LAR Retakaful assets 2,278 3,707 1,568 2,854 Loans and receivables, excluding takaful receivables 521,902 441,121 495,498 425,074 Takaful receivables 68,197 68,472 62,835 62,893 Cash and cash equivalents 265,736 288,172 204,687 211,248

3,550,136 3,618,971 3,376,890 3,454,527






General TakafulAFS financial assets Institutional Trust Account 38,147 36,379 38,147 36,379 Islamic debt securities 313,528 337,051 313,528 337,051 Malaysian Government Islamic papers 61,886 93,916 61,886 93,916 HTM financial assets Islamic debt securities 3,228 2,853 - - Malaysian Government Islamic papers 32,674 32,722 32,674 32,722 LAR Retakaful assets 291,300 221,036 277,129 204,619 Loans and receivables, excluding takaful receivables 89,541 116,276 75,503 105,444 Takaful receivables 48,959 25,541 40,511 17,605 Cash and cash equivalents 75,712 61,108 62,779 42,515

954,975 926,882 902,157 870,251

Group / CompanyAFS financial assets Institutional Trust Account 298,897 284,981 298,897 284,981 Islamic debt securities 2,213,609 2,305,807 2,207,130 2,295,190 Malaysian Government Islamic papers 455,731 664,459 455,731 664,459 FVTPL financial assets Islamic debt securities 89,030 58,974 16,267 14,267 HTM financial assets Islamic debt securities 259,217 144,928 248,637 129,127 Malaysian Government Islamic papers 145,391 145,503 145,391 145,503 LAR Retakaful assets 293,578 224,743 278,697 207,473 Loans and receivables, excluding takaful receivables 711,976 619,123 663,657 584,343 Takaful receivables 117,156 94,013 103,346 80,498 Cash and cash equivalents 430,619 452,252 313,239 302,780

5,015,204 4,994,783 4,730,992 4,708,621





Credit exposure by credit rating The table below provides information regarding the credit risk exposure of the Group and the Company by classifying assets according to the Group’s and the Company’s internal credit ratings of counterparties.

<----------------------------------------- Group -----------------------------------> Neither Past-due past-due but not nor impaired impaired Impaired Total2013 RM’000 RM’000 RM’000 RM’000

Takaful Operator AFS financial assets Institutional Trust Account 64,268 - - 64,268 Islamic debt securities 240,102 - - 240,102 Malaysian Government Islamic papers 10,013 - - 10,013FVTPL financial assets Islamic debt securities 4,041 - - 4,041HTM financial assets Islamic debt securities 1,614 351 210 2,175LAR Loans and receivables, excluding takaful receivables 153,255 1,817 1,245 156,317 Qardh receivables - - 47,950 47,950 Cash and cash equivalents 89,171 - - 89,171

562,464 2,168 49,405 614,037 Family Takaful AFS financial assets Institutional Trust Account 196,482 - - 196,482 Islamic debt securities 1,659,101 878 471 1,660,450 Malaysian Government Islamic papers 383,832 - - 383,832FVTPL financial assets Islamic debt securities 84,989 - - 84,989HTM financial assets Islamic debt securities 254,024 - - 254,024 Malaysian Government Islamic papers 112,717 - - 112,717LAR Retakaful assets 2,278 - - 2,278 Loans and receivables, excluding takaful receivables 521,902 - 301 522,203 Takaful receivables 63,557 4,640 2,781 70,978 Cash and cash equivalents 265,736 - - 265,736

3,544,618 5,518 3,553 3,553,689





Credit exposure by credit rating (continued)

<----------------------------------------- Group -----------------------------------> Neither Past-due past-due but not nor impaired impaired Impaired Total2013 RM’000 RM’000 RM’000 RM’000

General Takaful AFS financial assets Institutional Trust Account 38,147 - - 38,147 Islamic debt securities 313,528 - - 313,528 Malaysian Government Islamic papers 61,886 - - 61,886HTM financial assets Islamic debt securities 3,228 - - 3,228 Malaysian Government Islamic papers 32,674 - - 32,674LAR Retakaful assets 291,300 - - 291,300 Loans and receivables, excluding takaful receivables 89,541 - 381 89,922 Takaful receivables 37,884 11,075 5,742 54,701 Cash and cash equivalents 75,712 - - 75,712

943,900 11,075 6,123 961,098 Group AFS financial assets Institutional Trust Account 298,897 - - 298,897 Islamic debt securities 2,212,731 878 471 2,214,080 Malaysian Government Islamic papers 455,731 - - 455,731FVTPL financial assets Islamic debt securities 89,030 - - 89,030HTM financial assets Islamic debt securities 258,866 351 - 259,217 Malaysian Government Islamic papers 145,391 - - 145,391LAR Retakaful assets 293,578 - - 293,578 Loans and receivables, excluding takaful receivables 710,159 1,817 1,927 713,903 Takaful receivables 101,441 15,715 8,523 125,679 Cash and cash equivalents 430,619 - - 430,619

4,996,443 18,761 10,921 5,026,125






<------------------------------------------ Group ----------------------------------> Neither Past-due past-due but not nor impaired impaired Impaired Total2012 RM’000 RM’000 RM’000 RM’000

Takaful OperatorAFS financial assets Institutional Trust Account 61,270 - - 61,270 Islamic debt securities 200,588 - - 200,588 Malaysian Government Islamic papers 20,155 - - 20,155 FVTPL financial assets Islamic debt securities 634 - - 634 HTM financial assets Islamic debt securities 951 634 - 1,585 LAR Loans and receivables, excluding takaful receivables 128,171 - 1,253 129,424 Qardh receivables - - 34,286 34,286 Cash and cash equivalents 102,972 - - 102,972

514,741 634 35,539 550,914

Family TakafulAFS financial assets Institutional Trust Account 187,332 - - 187,332 Islamic debt securities 1,768,168 - - 1,768,168 Malaysian Government Islamic papers 550,388 - - 550,388 FVTPL financial assets Islamic debt securities 58,340 - - 58,340 HTM financial assets Islamic debt securities 140,490 - - 140,490 Malaysian Government Islamic papers 112,781 - - 112,781 LAR Retakaful assets 3,707 - - 3,707 Loans and receivables, excluding takaful receivables 441,121 - 301 441,422 Takaful receivables 61,098 7,374 3,901 72,373 Cash and cash equivalents 288,172 - - 288,172

3,611,597 7,374 4,202 3,623,173






<------------------------------------------ Group ----------------------------------> Neither Past-due past-due but not nor impaired impaired Impaired Total2012 RM’000 RM’000 RM’000 RM’000

General TakafulAFS financial assets Institutional Trust Account 36,379 - - 36,379 Islamic debt securities 337,051 - - 337,051 Malaysian Government Islamic papers 93,916 - - 93,916 HTM financial assets Malaysian Government Islamic papers 35,575 - - 35,575 LAR Retakaful assets 221,036 - - 221,036 Loans and receivables, excluding takaful receivables 116,276 - 381 116,657 Takaful receivables 16,310 9,231 6,982 32,523 Cash and cash equivalents 61,108 - - 61,108

917,651 9,231 7,363 934,245 GroupAFS financial assets Institutional Trust Account 284,981 - - 284,981 Islamic debt securities 2,305,807 - - 2,305,807 Malaysian Government Islamic papers 664,459 - - 664,459 FVTPL financial assets Islamic debt securities 58,974 - - 58,974 HTM financial assets Islamic debt securities 144,294 634 - 144,928 Malaysian Government Islamic papers 145,503 - - 145,503 LAR Retakaful assets 224,743 - - 224,743 Loans and receivables, excluding takaful receivables 619,123 - 1,935 621,058 Takaful receivables 77,408 16,605 10,883 104,896 Cash and cash equivalents 452,252 - - 452,252

4,977,544 17,239 12,818 5,007,601






<---------------------------------------- Company --------------------------------> Neither Past-due past-due but not nor impaired impaired Impaired Total2013 RM’000 RM’000 RM’000 RM’000

Takaful OperatorAFS financial assets Institutional Trust Account 64,268 - - 64,268 Islamic debt securities 239,235 - - 239,235 Malaysian Government Islamic papers 10,013 - - 10,013 LAR Loans and receivables, excluding takaful receivables 130,603 - 1,026 131,629 Cash and cash equivalents 45,773 - - 45,773

489,892 - 1,026 490,918


3,372,325 4,565 3,055 3,379,945








893,518 8,639 6,016 908,173

Company AFS financial assets Institutional Trust Account 298,897 - - 298,897 Islamic debt securities 2,207,130 - - 2,207,130 Malaysian Government Islamic papers 455,731 - - 455,731 FVTPL financial assets Islamic debt securities 16,267 - - 16,267 HTM financial assets Islamic debt securities 248,637 - - 248,637 Malaysian Government Islamic papers 145,391 - - 145,391 LAR Retakaful assets 278,697 - - 278,697 Loans and receivables, excluding takaful receivables 663,657 - 1,708 665,365 Takaful receivables 90,142 13,204 8,389 111,735 Cash and cash equivalents 313,239 - - 313,239

4,717,788 13,204 10,097 4,741,089







Takaful OperatorAFS financial assets Institutional Trust Account 61,270 - - 61,270 Islamic debt securities 199,576 - - 199,576 Malaysian Government Islamic papers 20,155 - - 20,155 LAR Loans and receivables, excluding takaful receivables 108,187 - 1,253 109,440 Cash and cash equivalents 49,017 - - 49,017

438,205 - 1,253 439,458


3,447,517 7,010 4,151 3,458,678








864,162 6,089 7,282 877,533 CompanyAFS financial assets Institutional Trust Account 284,981 - - 284,981 Islamic debt securities 2,295,190 - - 2,295,190 Malaysian Government Islamic papers 664,459 - - 664,459 FVTPL financial assets Islamic debt securities 14,267 - - 14,267 HTM financial assets Islamic debt securities 129,127 - - 129,127 Malaysian Government Islamic papers 145,503 - - 145,503 LAR Retakaful assets 207,473 - - 207,473 Loans and receivables, excluding takaful receivables 584,343 - 1,935 586,278 Takaful receivables 67,399 13,099 10,751 91,249 Cash and cash equivalents 302,780 - - 302,780

4,695,522 13,099 12,686 4,721,307



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<-------------------------------------------------------------- Group -------------------------------------------------------> AAA AA A Not-rated Unit-linked Total2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorAFS financial assets Institutional Trust Account - - - 61,270 - 61,270 Islamic debt securities 64,654 134,922 - 1,012 - 200,588 Malaysian Government Islamic papers - - - 20,155* - 20,155 FVTPL financial assets Islamic debt securities - - - 634 - 634 HTM financial assets Islamic debt securities - - - 1,585 - 1,585 LAR Loans and receivables, excluding takaful receivables - 25,767 8,611 93,793 - 128,171 Cash and cash equivalents 11,837 35,380 29,550 26,205 - 102,972

76,491 196,069 38,161 204,654 - 515,375

Family TakafulAFS financial assets Institutional Trust Account - - - 187,332 - 187,332 Islamic debt securities 649,657 820,169 12,437 285,905 - 1,768,168 Malaysian Government Islamic papers - - - 550,388* - 550,388 FVTPL financial assets Islamic debt securities - - - - 58,340 58,340 HTM financial assets Islamic debt securities - - 48,501 91,989 - 140,490 Malaysian Government Islamic papers - - - 112,781* - 112,781 LAR Retakaful assets - - - 3,707 - 3,707 Loans and receivables, excluding takaful receivables 700 42,270 76,468 320,589 1,094 441,121 Takaful receivables - 11 324 68,137 - 68,472 Cash and cash equivalents 78,279 52,360 30,246 112,041 15,246 288,172

728,636 914,810 167,976 1,732,869 74,680 3,618,971

* Malaysian Government Islamic papers are not rated by RAM but instead is rated A- based on Malaysia sovereign rating accorded by Standard & Poor.






<------------------------------------------------------------- Group --------------------------------------------------------> AAA AA A Not-rated Unit-linked Total2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General TakafulAFS financial assets Institutional Trust Account - - - 36,379 - 36,379 Islamic debt securities 104,412 193,123 1,777 37,739 - 337,051 Malaysian Government Islamic papers - - - 93,916* - 93,916 HTM financial assets Islamic debt securities - - - 2,853 - 2,853 Malaysian Government Islamic papers - - - 32,722* - 32,722 LAR Retakaful assets - - - 221,036 - 221,036 Loans and receivables, excluding takaful receivables - 10,411 28,811 77,054 - 116,276 Takaful receivables - 206 1,014 24,321 - 25,541 Cash and cash equivalents 9,606 19,488 12,025 19,989 - 61,108

114,018 223,228 43,627 546,009 - 926,882

GroupAFS financial assets Institutional Trust Account - - - 284,981 - 284,981 Islamic debt securities 818,723 1,148,214 14,214 324,656 - 2,305,807 Malaysian Government Islamic papers - - - 664,459* - 664,459 FVTPL financial assets Islamic debt securities - - - 634 58,340 58,974 HTM financial assets Islamic debt securities - - 48,501 96,427 - 144,928 Malaysian Government Islamic papers - - - 145,503* - 145,503 LAR Retakaful assets - - - 224,743 - 224,743 Loans and receivables, excluding takaful receivables 700 78,448 113,890 424,991 1,094 619,123 Takaful receivables - 217 1,338 92,458 - 94,013 Cash and cash equivalents 99,722 107,228 71,821 158,235 15,246 452,252

919,145 1,334,107 249,764 2,417,087 74,680 4,994,783







<----------------------------------------------------------- Company -----------------------------------------------------> AAA AA A Not-rated Unit-linked Total2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorAFS financial assets Institutional Trust Account - - - 61,270 - 61,270 Islamic debt securities 64,654 134,922 - - - 199,576 Malaysian Government Islamic papers - - - 20,155* - 20,155LAR Loans and receivables, excluding takaful receivables - 25,767 8,611 73,809 - 108,187 Cash and cash equivalents 11,829 35,137 2,004 47 - 49,017

76,483 195,826 10,615 155,281 - 438,205

Family TakafulAFS financial assets Institutional Trust Account - - - 187,332 - 187,332 Islamic debt securities 649,657 820,169 12,437 276,300 - 1,758,563 Malaysian Government Islamic papers - - - 550,388* - 550,388FVTPL financial assets Islamic debt securities - - - - 14,267 14,267HTM financial assets Islamic debt securities - - 48,501 80,626 - 129,127 Malaysian Government Islamic papers - - - 112,781* - 112,781LAR Retakaful assets - - - 2,854 - 2,854 Loans and receivables, excluding takaful receivables 700 42,270 70,918 310,136 1,050 425,074 Takaful receivables - 11 324 62,558 - 62,893 Cash and cash equivalents 78,270 52,101 25,349 46,266 9,262 211,248

728,627 914,551 157,529 1,629,241 24,579 3,454,527







<----------------------------------------------------------- Company -----------------------------------------------------> AAA AA A Not-rated Unit-linked Total2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General TakafulAFS financial assets Institutional Trust Account - - - 36,379 - 36,379 Islamic debt securities 104,412 193,123 1,777 37,739 - 337,051 Malaysian Government Islamic papers - - - 93,916* - 93,916HTM financial assets Malaysian Government Islamic papers - - - 32,722* - 32,722LAR Retakaful assets - - - 204,619 - 204,619 Loans and receivables, excluding takaful receivables - 10,411 26,446 68,587 - 105,444 Takaful receivables - 206 1,014 16,385 - 17,605 Cash and cash equivalents 9,604 19,458 5,651 7,802 - 42,515

114,016 223,198 34,888 498,149 - 870,251

CompanyAFS financial assets Institutional Trust Account - - - 284,981 - 284,981 Islamic debt securities 818,723 1,148,214 14,214 314,039 - 2,295,190 Malaysian Government Islamic papers - - - 664,459* - 664,459FVTPL financial assets Islamic debt securities - - - - 14,267 14,267HTM financial assets Islamic debt securities - - 48,501 80,626 - 129,127 Malaysian Government Islamic papers - - - 145,503* - 145,503 LAR Retakaful assets - - - 207,473 - 207,473 Loans and receivables, excluding takaful receivables 700 78,448 105,975 398,170 1,050 584,343 Takaful receivables - 217 1,338 78,943 - 80,498 Cash and cash equivalents 99,703 106,696 33,004 54,115 9,262 302,780

919,126 1,333,575 203,032 2,228,309 24,579 4,708,621






Age analysis of takaful receivables past-due but not impaired

A financial asset is deemed past-due when the counterparty has failed to make payment even though the outstanding amount is contractually due. Receivables past-due but not impaired includes contribution due and claims recovery from retakaful which remained outstanding after the contractual due date for more than 6 months.

The age analysis of takaful receivables past-due but not impaired as at the end of the reporting period based on days past-due was as follows:


Family TakafulDays past-due1-30 days 1,754 2,031 1,696 1,775 31-60 days 37 989 25 974 61-90 days 2 497 - 475 91-180 days 700 1,358 697 1,324 > 180 days 2,147 2,499 2,147 2,462

4,640 7,374 4,565 7,010

General Takaful Days past-due 1-30 days 552 310 413 167 31-60 days 748 316 659 308 61-90 days 478 256 334 226 91-180 days 2,335 2,365 1,913 2,214 > 180 days 6,962 5,984 5,320 3,174

11,075 9,231 8,639 6,089

Group / Company Days past-due 1-30 days 2,306 2,341 2,109 1,942 31-60 days 785 1,305 684 1,282 61-90 days 480 753 334 701 91-180 days 3,035 3,723 2,610 3,538 > 180 days 9,109 8,483 7,467 5,636

15,715 16,605 13,204 13,099




39.4 Credit risk (continued) Impairment loss of takaful receivables The Group and the Company assess impairment on an individual and collective basis. The Group and the Company will assess on a case by case basis, whether there is any objective evidence that the outstanding due is impaired for contribution due and claims recovery that are considered individually significant. The criteria that the Group and the Company use to determine whether there is objective evidence of impairment for those selected for individual assessment include:

(i) contribution due or claims recovery past-due for 6 months or more and where outstanding receivables is above 2% of total takaful receivables and RM200,000 for Family and General takaful receivables respectively;

(ii) significant financial difficulty of customer / intermediaries;

(iii) long outstanding balances where these are disputed and not resolved; and

(iv) breach of contract, such as default or deliquency in payments.

The Group and the Company record impairment allowance for loans and receivables and takaful receivables in separate “Allowance for Impairment” accounts. Unless the Group and the Company are satisfied that recovery of the amount is possible, the amount considered irrecoverable is written off against the receivables directly.

A reconciliation of the allowance for impairment losses for takaful receivables was as follows: Group Company 2013 2012 2013 2012 Note RM’000 RM’000 RM’000 RM’000

Family Takaful At 1 January 11 3,901 5,567 3,850 5,441 Writeback of impairment loss 27 (1,120) (1,666) (1,096) (1,591)

At 31 December 11 2,781 3,901 2,754 3,850

General Takaful At 1 January 11 6,982 9,522 6,901 9,444 Writeback of impairment loss 27 (1,241) (2,540) (1,267) (2,543)

At 31 December 11 5,741 6,982 5,634 6,901

Group / Company At 1 January 11 10,883 15,089 10,751 14,885 Writeback of impairment loss 27 (2,361) (4,206) (2,363) (4,134)

At 31 December 11 8,522 10,883 8,388 10,751




39.5 Liquidity risk

Liquidity risk is the risk that the Group and the Company will encounter difficulty in meeting obligations associated with financial instruments. In respect of catastrophic events, there is also a liquidity risk associated with the timing differences between gross cash outflows and expected retakaful recoveries.

The following policies and procedures are in place to mitigate the Group’s and the Company’s exposure to liquidity risk:

- The Group and the Company-wide liquidity risk policy setting out the evaluation and determination of the components of liquidity risk of the Group and the Company. Compliance with the policy is monitored and reported monthly and exposures and breaches are reported to the Group’s and the Company’s Risk Management Committee as soon as practicable. The policy is regularly reviewed for pertinence and for changes in the risk environment.

- Setting up guidelines on asset allocations, portfolio limit structures and maturity profiles of assets, in order to ensure sufficient funding is available to meet takaful and investment contracts obligations.

- Setting up contingency funding plans which specify minimum proportions of funds to meet emergency calls as well as specifying events that would trigger such plans.

- The Company’s catastrophe excess of loss retakaful contracts contains clauses permitting the immediate draw down of funds to meet claims payments should claims events exceed certain amount.

Maturity profiles

The table below summarises the maturity profile of the financial liabilities of the Group and of the Company based on remaining undiscounted contractual obligations, including profit payable.

For takaful contract liabilities, maturity profiles are determined based on estimated timing of net cash outflows from the recognised takaful liabilities. Investment-linked liabilities are repayable or transferable on demand and are included in the “up to a year” column.

<----------------------------------------------------- Group ---------------------------------------------------> Carrying Up to 1 - 3 3 - 5 More than No value a year* years years 5 years Maturity Total

2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorOther payables 91,367 88,466 798 12 2,091 - 91,367

Family TakafulQardh payables 23,028 23,028 - - - - 23,028 Provision for outstanding claims 40,150 39,077 369 284 420 - 40,150 Takaful payables 25,859 25,859 - - - - 25,859 Other payables 123,787 122,410 1,124 217 36 - 123,787

212,824 210,374 1,493 501 456 - 212,824

* expected utilisation or settlement is within 12 months from the reporting date.




39.5 Liquidity risk (continued)

Maturity profiles (continued)

<----------------------------------------------------- Group ---------------------------------------------------> Carrying Up to 1 - 3 3 - 5 More than No value a year* years years 5 years Maturity Total

2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

General Takaful Qardh payables 25,634 25,634 - - - - 25,634 Provision for outstanding claims 433,215 163,421 151,542 100,969 17,283 - 433,215 Takaful payables 49,569 48,833 736 - - - 49,569 Other payables 67,261 67,149 90 22 - - 67,261

575,679 305,037 152,368 100,991 17,283 - 575,679

Group Provision for outstanding claims 473,365 202,498 151,911 101,253 17,703 - 473,365 Takaful payables 75,428 74,692 736 - - - 75,428 Other payables 227,876 223,486 2,012 251 2,127 - 227,876

776,669 500,676 154,659 101,504 19,830 - 776,669 2012Takaful OperatorOther payables 84,531 77,771 774 46 5,940 - 84,531

Family TakafulQardh payables 10,398 10,398 - - - - 10,398 Provision for outstanding claims 28,387 27,829 418 140 - - 28,387 Takaful payables 20,501 20,501 - - - - 20,501 Other payables 156,434 144,711 2,010 24 24 9,665 156,434

215,720 203,439 2,428 164 24 9,665 215,720

General TakafulQardh payables 23,888 23,888 - - - - 23,888 Provision for outstanding claims 389,557 130,898 180,980 54,543 23,136 - 389,557 Takaful payables 22,625 20,922 1,703 - - - 22,625 Other payables 61,492 61,298 181 13 - - 61,492

497,562 237,006 182,864 54,556 23,136 - 497,562

GroupProvision for outstanding claims 417,944 158,727 181,398 54,683 23,136 - 417,944 Takaful payables 43,126 41,423 1,703 - - - 43,126 Other payables 236,013 217,965 2,965 83 5,964 9,036 236,013

697,083 418,115 186,066 54,766 29,100 9,036 697,083 * expected utilisation or settlement is within 12 months from the reporting date.






<----------------------------------------------------- Company -----------------------------------------------> Carrying Up to 1 - 3 3 - 5 More than No value a year* years years 5 years Maturity Total

2013 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorOther payables 66,866 66,594 272 - - - 66,866

Family TakafulProvision for outstanding claims 26,139 26,139 - - - - 26,139 Takaful payables 22,725 22,725 - - - - 22,725 Other payables 118,256 116,879 1,124 217 36 - 118,256

167,120 165,743 1,124 217 36 - 167,120

General TakafulProvision for outstanding claims 407,039 143,168 145,619 100,969 17,283 - 407,039 Takaful payables 48,449 48,449 - - - - 48,449 Other payables 65,099 64,987 90 22 - - 65,099

520,587 256,604 145,709 100,991 17,283 - 520,587

Group Provision for outstanding claims 433,178 169,307 145,619 100,969 17,283 - 433,178 Takaful payables 71,174 71,174 - - - - 71,174 Other payables 212,274 210,513 1,486 239 36 - 212,274

716,626 450,994 147,105 101,208 17,319 - 716,626

* expected utilisation or settlement is within 12 months from the reporting date.






<--------------------------------------------------- Company ------------------------------------------------> Carrying Up to 1 - 3 3 - 5 More than No value a year* years years 5 years Maturity Total

2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful Operator Other payables 72,680 72,386 294 - - - 72,680

Family Takaful Provision for outstanding claims 25,386 25,386 - - - - 25,386 Takaful payables 15,318 15,318 - - - - 15,318 Other payables 145,157 143,099 2,010 24 24 - 145,157

185,861 183,803 2,010 24 24 - 185,861

General Takaful Provision for outstanding claims 356,014 105,902 172,433 54,543 23,136 - 356,014 Takaful payables 20,505 20,505 - - - - 20,505 Other payables 60,303 60,109 181 13 - - 60,303

436,822 186,516 172,614 54,556 23,136 - 436,822

GroupProvision for outstanding claims 381,400 131,288 172,433 54,543 23,136 - 381,400 Takaful payables 35,823 35,823 - - - - 35,823 Other payables 223,778 221,232 2,485 37 24 - 223,778

641,001 388,343 174,918 54,580 23,160 - 641,001 * expected utilisation or settlement is within 12 months from the reporting date.




39.6 Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three (3) types of risk - foreign exchange rates (Currency risk), market profit yields (Profit Yield risk) and market prices (Price risk).

The key features of the Group’s and the Company’s market risk management practices and policies are as follows:

- A Group and the Company-wide market risk policy setting out the evaluation and determination of components of market risk for the Group and the Company. Compliance with the policy is monitored and reported monthly to the Risk Management Committee (RMC) and exposures and breaches are reported as soon as practicable.

- Set asset allocation, portfolio limit structure and diversification benchmark to ensure that assets back specific contract liabilities and that assets are held to deliver income and gains for certificate holders in line with terms of the respective contracts expectations of policies. The Group’s and the Company’s policies on asset allocation, portfolio limit structure and diversification benchmark have been set in line with Group’s and Company’s risk management policy after taking cognisance of the regulatory requirements in respect of maintenance of assets and solvency.

The Group and the Company also issue unit-linked investment policies. In the unit-linked business, the certificate holders bear investment risk on the assets held in the unit-linked funds as the certificate benefits are directly linked to value of the assets in the funds. The Group’s and Company’s exposure to market risk on this business is limited to the extent that income arising from asset management charges is based on the value of the assets in the funds.

39.7 Currency risk Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Group’s and the Company’s primary transactions are carried out in Ringgit Malaysia (RM) and its exposure to foreign exchange risk arises principally with respect to Indonesia Rupiah (Rp) and US Dollar (USD).

As the Group’s and Company’s business is conducted primarily in Malaysia, the Group’s and the Company’s financial assets are also primarily maintained in Malaysia as required under the Takaful Act, 1984 (repealed on 30 June 2013) and Islamic Financial Services Act 2013 (effective on 30 June 2013), and hence, primarily denominated in the same currency (the local RM) as its takaful and investment contract liabilities. Accordingly, the main foreign exchange risk from recognised assets and liabilities arises from transactions other than those in which takaful and investment contract liabilities are expected to be settled.

As the Group’s and the Company’s main foreign exchange risk from recognised assets and liabilities arises from retakaful transactions for which the balances are expected to be settled and realised in less than a year, the impact arising from sensitivity in foreign exchange rates is deemed minimal as the Group and the Company has no significant concentration of foreign currency risk. The Group’s and the Company’s exposure to currency risk is immaterial in the context of the financial statements and hence, sensitivity analysis is not presented.




39.8 Profit yield risk

Profit yield risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market profit yield.

Floating rate / yield instruments expose the Group and the Company to cash flow risk, whereas fixed rate / yield instruments expose the Group and the Company to fair value risk.

Risk management objectives, policies and processes for managing the risk

The Group’s and the Company’s profit risk policy requires Management to manage the risk by maintaining an appropriate mix of variable and fixed rate / yield instruments. The policy also requires Management to manage the maturities of profit-bearing financial assets and liabilities. Floating rate / yield instruments will be re-priced at intervals of not more than one (1) year. Profit on fixed rate / yield instruments is priced at inception of the financial instrument and is fixed until maturity.

Exposure to profit yield risk

The profit yield profile of the Group’s and the Company’s significant profit-bearing financial instruments, based on carrying amounts as at the end of the reporting period was as follows: Group Company 2013 2012 2013 2012Fixed rate instruments RM’000 RM’000 RM’000 RM’000

Takaful OperatorAFS financial assets 250,115 220,743 249,248 219,731 FVTPL financial assets 4,041 634 - - HTM financial assets 1,965 1,585 - - LAR 194,337 157,914 133,984 98,630

450,458 380,876 383,232 318,361

Family Takaful AFS financial assets 2,043,811 2,318,556 2,038,199 2,308,951 FVTPL financial assets 84,989 58,340 16,267 14,267 HTM financial assets 366,741 253,271 361,354 241,908 LAR 694,446 632,130 625,391 544,991

3,189,987 3,262,297 3,041,211 3,110,117




39.8 Profit yield risk (continued)

Exposure to profit yield risk (continued)

Group Company 2013 2012 2013 2012Fixed rate instruments RM’000 RM’000 RM’000 RM’00

General Takaful AFS financial assets 375,414 430,967 375,414 430,967 HTM financial assets 35,902 35,575 32,674 32,722 LAR 104,501 137,110 90,714 115,158

515,817 603,652 498,802 578,847

Group / Company AFS financial assets 2,669,340 2,970,266 2,662,861 2,959,649 FVTPL financial assets 89,030 58,974 16,267 14,267 HTM financial assets 404,608 290,431 394,028 274,630 LAR 993,284 927,154 850,089 758,779

4,156,262 4,246,825 3,923,245 4,007,325 The Group and the Company have no significant concentration of profit yield risk. A change of 50 basis points in profit rates at the end of the reporting period would have increased / (decreased) other comprehensive income / equity, Family and General Takaful participant’s fund by the amounts shown below. This analysis assumes that all other variables remain constant.

<-------------------------------------- Group -----------------------------------> Impact on Impact on Impact on Change in profit Impact on operating participants’ variables before tax equity* surplus fund2013 RM’000 RM’000 RM’000 RM’000

Takaful Operator AFS financial assets +50bps - (8,351) - - FVTPL financial assets +50bps 11 11 - -

11 (8,340) - -

AFS financial assets -50bps - 10,603 - - FVTPL financial assets -50bps (11) (11) - -

(11) 10,592 - -

Family Takaful AFS financial assets +50bps - - - (118,321)FVTPL financial assets +50bps - - (325) (325)

- - (325) (118,646)

AFS financial assets -50bps - - - 158,130 FVTPL financial assets -50bps - - 368 368

- - 368 158,498

* impact on equity reflects adjustments for tax, when applicable.






<--------------------------------------- Group ----------------------------------> Impact on Impact on Impact on Change in profit Impact on operating participants’ variables before tax equity* surplus fund RM’000 RM’000 RM’000 RM’000

2013General Takaful AFS financial assets +50bps - - - (16,681)AFS financial assets -50bps - - - 20,933

Group AFS financial assets +50bps - (8,351) - (135,002)FVTPL financial assets +50bps 11 11 (325) (325)

11 (8,340) (325) (135,327)

AFS financial assets -50bps - 10,603 - 179,063FVTPL financial assets -50bps (11) (11) 368 368

(11) 10,592 368 179,431

2012Takaful Operator AFS financial assets +50bps - (5,218) - - AFS financial assets -50bps - 5,284 - -


- - (217) (81,652)


- - 223 92,676

General Takaful AFS financial assets +50bps - - - (11,860)AFS financial assets -50bps - - - 12,302

Group AFS financial assets +50bps - (5,218) - (93,295)FVTPL financial assets +50bps - - (217) (217)

- (5,218) (217) (93,512)

AFS financial assets -50bps - 5,284 - 104,755 FVTPL financial assets -50bps - - 223 223

- 5,284 223 104,978







<------------------------------------ Company --------------------------------> Impact on Impact on Impact on Change in profit Impact on operating participants’ variables before tax equity* surplus fund2013 RM’000 RM’000 RM’000 RM’000

Takaful Operator AFS financial assets +50bps - (8,354) - - AFS financial assets -50bps - 10,606 - -


- - (667) (119,015)

AFS financial assets -50bps - - - 158,157FVTPL financial assets -50bps - - 710 710

- - 710 158,867


Company AFS financial assets +50bps - (8,354) - (135,029)FVTPL financial assets +50bps - - (667) (667)

- (8,354) (667) (135,696)

AFS financial assets -50bps - 10,606 - 179,090FVTPL financial assets -50bps - - 710 710

- 10,606 710 179,800 * impact on equity reflects adjustments for tax, when applicable.






<------------------------------------ Company --------------------------------> Impact on Impact on Impact on Change in profit Impact on operating participants’ variables before tax equity* surplus fund2012 RM’000 RM’000 RM’000 RM’000

Takaful Operator AFS financial assets +50bps - (5,219) - - AFS financial assets -50bps - 5,285 - -


- - (217) (81,700)


- - 223 92,724


Company AFS financial assets +50bps - (5,219) - (93,343)FVTPL financial assets +50bps - - (217) (217)

- (5,219) (217) (93,560)

AFS financial assets -50bps - 5,285 - 104,803 FVTPL financial assets -50bps - - 223 223

- 5,285 223 105,026 * impact on equity reflects adjustments for tax, when applicable.




39.9 Other price risk

Equity price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from profit yield risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer or factors affecting similar financial instruments traded in the market.

The Group’s and the Company’s equity price risk exposure relates to financial assets whose values will fluctuate as a result of changes in market prices (excluding those investment securities held for the account of unit-linked business).

Risk management objectives, policies and processes for managing the risk The Group’s and the Company’s price risk policy requires it to manage such risks by setting and monitoring objectives and constraints on investments, diversification plans, limits on investments in each country, sector, market and issuer, having regard also to such limits stipulated by BNM. The Group and the Company comply with BNM stipulated limits during the financial year and have no significant concentration of price risk.

Equity price risk sensitivity analysis

The analysis below is performed for reasonably possible movements in key variables with all other variables held constant, showing the impact on OCI / Equity for Takaful Operator, and showing the impact on operating surplus / participants’ fund for Investment-linked Fund, and participants’ fund for Family Takaful Fund and General Takaful Fund accordingly. The correlation of variables will have a significant effect in determining the ultimate impact on price risk, but to demonstrate the impact due to changes in variables, variables had to be changed on individual basis. It should be noted that movements in these variables are non-linear.


Takaful Operator Market price +15% (39) 17,331 - -Market price -15% 39 (17,331) - -

Family Takaful Market price +15% - - 5,736 124,525Market price -15% - - (5,736) (124,525)

General Takaful Market price +15% - - - 23,085Market price -15% - - - (23,085)

Group Market price +15% (39) 13,045 5,736 147,610 Market price -15% 39 (13,045) (5,736) (147,610)





39.9 Other price risk (continued)

Equity price risk sensitivity analysis (continued)

<--------------------------------------- Group ----------------------------------> Impact on Impact on Impact on Change in profit Impact on operating participants’ variables before tax equity* surplus fund2012 RM’000 RM’000 RM’000 RM’000

Takaful Operator Market price +15% - 12,578 - - Market price -15% - (12,578) - - Family Takaful Market price +15% - - 15,249 91,178 Market price -15% - - (15,249) (91,178)

General Takaful Market price +15% - - - 14,763 Market price -15% - - - (14,763)

GroupMarket price +15% - 7,967 15,249 105,941 Market price -15% - (7,967) (15,249) (105,941)

<----------------------------------- Company -------------------------------> Impact on Impact on Impact on Change in profit Impact on operating participants’ variables before tax equity* surplus fund2013 RM’000 RM’000 RM’000 RM’000

Takaful Operator Market price +15% - 17,389 - - Market price -15% - (17,389) - -

Family Takaful Market price +15% - - 7,686 125,829Market price -15% - - (7,686) (125,829)

General Takaful Market price +15% - - - 23,116Market price -15% - - - (23,116)

CompanyMarket price +15% - 13,103 7,686 148,945Market price -15% - (13,103) (7,686) (148,945)

* impact on equity reflects adjustments for tax, when applicable




39.9 Other price risk (continued)

Equity price risk sensitivity analysis (continued)

<------------------------------------ Company ---------------------------------> Impact on Impact on Impact on Change in profit Impact on operating participants’ variables before tax equity* surplus fund2012 RM’000 RM’000 RM’000 RM’000

Takaful Operator Market price +15% - 11,568 - - Market price -15% - (11,568) - -

Family Takaful Market price +15% - - 5,963 69,900 Market price -15% - - (5,963) (69,900)

General Takaful Market price +15% - - - 14,414 Market price -15% - - - (14,414)

Company Market price +15% - 6,958 5,963 84,315 Market price -15% - (6,958) (5,963) (84,315) * impact on equity reflects adjustments for tax, when applicable.

39.10 Fair value information

The carrying amounts of cash and cash equivalents, and short-term receivables and payables reasonably approximate their fair values due to the relatively short-term nature of these financial instruments.

It was not practicable to estimate the fair value of the Group’s investment in unquoted shares due to the lack of comparable quoted market prices in an active market and the fair value cannot be reliably measured. Please refer to the respective note for the fair values of other financial assets and liabilities, together with the carrying amounts shown in the statements of financial position.



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3

2,77

8

-

32,

778

6

00,4

47

600,

343

Com

pany

Fina

ncia

l ass

ets

Equi

ty se

curit

ies

982,

136

- -

982

,136

-

- -

-

982

,136

98

2,13

6 U

nit t

rust

s 1

27,3

10

-

-

127

,310

-

-

-

-

1

27,3

10

127

,310

In

stitu

tiona

l Tru

st A

ccou

nt

-

-

298

,897

2

98,8

97

-

-

-

-

298

,897

2

98,8

97

Isla

mic

deb

t sec

uriti

es

- 2,

223,

397

- 2

,223

,397

-

246,

841

- 2

46,8

41

2,4

70,2

38

2,47

2,03

4 M

alay

sian

Gov

ernm

ent

Is

lam

ic p

aper

s -

455,

731

- 4

55,7

31

- 14

5,62

9 -

145

,629

6

01,3

60

601,

122

1

,109

,446

2,

679,

128

29

8,89

7

4,08

7,47

1

-

392,

470

-

3

92,4

70

4,4

79,9

41

4,48

1,49

9




39.10 Fair value information (continued)

<---------------------------------------------------------- Group -----------------------------------------------------> Fair value of financial instrument Fair value of not carried financial instruments at fair Total Carrying carried at fair value value* fair value amount Level 1 Level 2 Level 3 Total Total2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorFinancial assetsEquity securities 37,004 - - 37,004 - 37,004 37,004 Unit trusts 31,574 - - 31,574 - 31,574 31,574 Institutional Trust Account - - 61,270 61,270 - 61,270 61,270 Islamic debt securities - 201,222 - 201,222 1,598 202,820 202,807 Investment in linked funds 40,980 - - 40,980 - 40,980 40,980 Malaysian Government Islamic papers - 20,155 - 20,155 - 20,155 20,155

109,558 221,377 61,270 392,205 1,598 393,803 393,790

Family TakafulFinancial assetsEquity securities 466,430 - - 466,430 - 466,430 466,430 Unit trusts 141,424 - - 141,424 - 141,424 141,424 Institutional Trust Account - - 187,332 187,332 - 187,332 187,332 Investment units in commodity,equity and fixed income closed ended fund - - 59,662 59,662 - 59,662 59,662 Islamic debt securities - 1,826,508 - 1,826,508 153,596 1,980,104 1,966,998 Malaysian Government Islamic papers - 550,388 - 550,388 115,176 665,564 663,169

607,854 2,376,896 246,994 3,231,744 268,772 3,500,516 3,485,015

General TakafulFinancial assetsEquity securities 85,161 - - 85,161 - 85,161 85,161 Unit trusts 13,257 - - 13,257 - 13,257 13,257 Institutional Trust Account - - 36,379 36,379 - 36,379 36,379 Islamic debt securities - 337,051 - 337,051 2,937 339,988 339,904 Malaysian Government Islamic papers - 93,916 - 93,916 33,351 127,267 126,638

98,418 430,967 36,379 565,764 36,288 602,052 601,339 GroupFinancial assetsEquity securities 588,595 - - 588,595 - 588,595 588,595 Unit trusts 186,255 - - 186,255 - 186,255 186,255 Institutional Trust Account - - 284,981 284,981 - 284,981 284,981 Investment units in commodity, equity and fixed income closed ended fund - - 59,662 59,662 - 59,662 59,662 Islamic debt securities - 2,364,781 - 2,364,781 158,131 2,522,912 2,509,709 Malaysian Government Islamic papers - 664,459 - 664,459 148,527 812,986 809,962

774,850 3,029,240 344,643 4,148,733 306,658 4,455,391 4,439,164





<--------------------------------------------------------- Company --------------------------------------------------> Fair value of financial instrument Fair value of not carried financial instruments at fair Total Carrying carried at fair value value* fair value amount Level 1 Level 2 Level 3 Total Total2012 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Takaful OperatorFinancial assetsEquity securities 37,004 - - 37,004 - 37,004 37,004 Unit trusts 24,844 - - 24,844 - 24,844 24,844 Institutional Trust Account - - 61,270 61,270 - 61,270 61,270 Islamic debt securities - 199,576 - 199,576 - 199,576 199,576 Investment in linked funds 40,980 - - 40,980 - 40,980 40,980 Malaysian Government Islamic papers - 20,155 - 20,155 - 20,155 20,155

102,828 219,731 61,270 383,829 - 383,829 383,829 Family TakafulFinancial assetsEquity securities 434,048 - - 434,048 - 434,048 434,048 Unit trusts 31,955 - - 31,955 - 31,955 31,955 Institutional Trust Account - - 187,332 187,332 - 187,332 187,332 Investment units in commodity, equity and fixed income closed ended fund - - 59,662 59,662 - 59,662 59,662 Islamic debt securities - 1,772,830 - 1,772,830 142,033 1,914,863 1,901,957 Malaysian Government Islamic papers - 550,388 - 550,388 115,176 665,564 663,169

466,003 2,323,218 246,994 3,036,215 257,209 3,293,424 3,278,123

General TakafulFinancial assetsEquity securities 85,161 - - 85,161 - 85,161 85,161 Unit trusts 10,935 - - 10,935 - 10,935 10,935 Institutional Trust Account - - 36,379 36,379 - 36,379 36,379 Islamic debt securities - 337,051 - 337,051 - 337,051 337,051 Malaysian Government Islamic papers - 93,916 - 93,916 33,351 127,267 126,638

96,096 430,967 36,379 563,442 33,351 596,793 596,164

CompanyFinancial assetsEquity securities 556,213 - - 556,213 - 556,213 556,213 Unit trusts 67,734 - - 67,734 - 67,734 67,734 Institutional Trust Account - - 284,981 284,981 - 284,981 284,981 Investment units in commodity, equity and fixed income closed ended fund - - 59,662 59,662 - 59,662 59,662 Islamic debt securities - 2,309,457 - 2,309,457 142,033 2,451,490 2,438,584 Malaysian Government Islamic papers - 664,459 - 664,459 148,527 812,986 809,962

623,947 2,973,916 344,643 3,942,506 290,560 4,233,066 4,217,136

* Comparative figures have not been analysed by levels, by virtue of transitional provision given in Appendix C2 of MFRS 13.





Policy on transfer between levels

The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer.

Level 1 fair value

Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical financial assets or liabilities that the entity can access at the measurement date.

Level 2 fair value

Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the identical financial assets or liabilities, either directly or indirectly.

Non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the end of the reporting period.

Transfer between Level 1 and 2 fair values

There has been no transfer between Level 1 and 2 fair values during the financial year (2012: no transfer in either direction).

Level 3 fair value Level 3 fair value is estimated using unobservable inputs for the financial assets and liabilities.

The following table shows a reconciliation of Level 3 fair values:


Institutional Trust AccountTakaful OperatorBalance at 1 January 61,270 48,726 61,270 48,726 Purchases - 10,000 - 10,000 Gains and losses recognised in profit or loss Investment income - realised 2,998 2,544 2,998 2,544

Balance at 31 December 64,268 61,270 64,268 61,270






Institutional Trust AccountFamily TakafulBalance at 1 January 187,332 174,649 187,332 174,649 Purchases - 4,087 - 4,087 Gains and losses recognised in profit or loss Investment income - realised 9,150 8,596 9,150 8,596


General Takaful Balance at 1 January 36,379 33,711 36,379 33,711 Purchases - 1,000 - 1,000 Gains and losses recognised in profit or loss Investment income - realised 1,768 1,668 1,768 1,668


Group / CompanyBalance at 1 January 284,981 257,086 284,981 257,086 Purchases - 15,087 - 15,087 Gains and losses recognised in profit or loss Investment income - realised 13,916 12,808 13,916 12,808


Investment units in commodity, equity and fixed income closed ended fund

Family Takaful / Group / Company Balance at 1 January 59,662 63,906 59,662 63,906 Redemption (688) (2,350) (688) (2,350)Maturity (60,602) - (60,602) -Gains and losses recognised in profit or loss Fair value gains and losses - unrealised 1,628 (1,894) 1,628 (1,894)

Balance at 31 December - 59,662 - 59,662





The following table shows the valuation techniques used in the determination of fair values within Level 3, as well as the key unobservable inputs used in the valuation models. (a) Financial instruments carried at fair value

Inter-relationship Significant between significant unobservable unobservable inputs and Type Valuation technique inputs fair value measurement

Institutional Discounted cash flows Discount rate The estimated fair valueTrust Account using market interest of 3.58% would increase / (decrease) rates for a similar if the discount rate were instrument at the (lower) / higher. measurement date Sensitivity analysis for Level 3


Takaful OperatorDiscount rate +1% - (707) - -Discount rate -1% - 733 - -

Family TakafulDiscount rate +1% - - - (1,950)Discount rate -1% - - - 2,003

General Takaful Discount rate +1% - - - (546)Discount rate -1% - - - 562

Group Discount rate +1% - (707) - (2,496)Discount rate -1% - 733 - 2,565


Valuation processes applied by the Group for Level 3 fair value

The Group has an established control framework in respect to the measurement of fair values of financial instruments. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, which reports directly to the Chief Investment Officer and Chief Financial Officer. The valuation team regularly review significant unobservable inputs and valuation adjustments.



40. Operating leases

Leases as lessee

Non-cancellable operating lease rentals are payable as follows:


Takaful Operator Non-related parties: Less than one year 1,465 3,049 1,465 2,845 Between one and five years 4,465 11,342 4,465 11,179

5,930 14,391 5,930 14,024

Related party: Less than one year 177 1,567 - -

177 1,567 - -

6,107 15,958 5,930 14,024

Group / Company Non-related parties: Less than one year 1,465 3,049 1,465 2,845 Between one and five years 4,465 11,342 4,465 11,179

5,930 14,391 5,930 14,024

Lease commitments are wholly payable from the Takaful Operator. The Group and the Company lease a number of computers and equipment under operating leases. The leases typically run for a period of five years, with an option to renew the lease after that date.

Leases as lessor

The Group and the Company lease out their investment properties (see Note 4). The future minimum lease receivables under non-cancellable leases are as follows:


Takaful Operator Non-related parties: Less than one year 31 171 31 171 Between one and five years 29 2 29 2

60 173 60 173

Related party: Less than one year 432 1,107 432 702 Between one and five years 568 357 568 357

1,000 1,464 1,000 1,059

1,060 1,637 1,060 1,232



40. Operating leases (continued)

Leases as lessor (continued)


Family Takaful Non-related parties: Less than one year 4,169 6,212 4,169 6,212 Between one and five years 3,091 3,276 3,091 3,189

7,260 9,488 7,260 9,401

Related party: Less than one year 1,403 2,670 1,226 1,508 Between one and five years 553 1,536 553 1,536

1,956 4,206 1,779 3,044

9,216 13,694 9,039 12,445

General Takaful Non-related parties: Less than one year 353 663 353 663 Between one and five years 254 362 254 362

607 1,025 607 1,025

Related party: Less than one year 309 228 309 228 Between one and five years 323 71 323 71

632 299 632 299

1,239 1,324 1,239 1,324

Group / Company Non-related parties: Less than one year 4,553 7,046 4,553 7,046 Between one and five years 3,374 3,640 3,374 3,553

7,927 10,686 7,927 10,599

Related party: Less than one year 1,967 2,438 1,967 2,438 Between one and five years 1,444 1,964 1,444 1,964

3,411 4,402 3,411 4,402

11,338 15,088 11,338 15,001



41. Capital commitments

Group and Company 2013 2012 RM’000 RM’000

Authorised by the Directors and contracted for 1,357 645

42. Related parties Identity of related parties For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice-versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel include all the Directors of the Group, and certain members of senior management of the Group. Compensation paid to key management personnel have been disclosed in Note 30.

The Group has related party relationship with its holding companies, significant investors, subsidiaries and associates, Directors and key management personnel.

Significant related party transactions

Related party transactions have been entered into in the normal course of business under normal trade terms. The significant related party transactions of the Company, other than key management personnel compensation as disclosed in Note 30, are as follows:


Ultimate holding company Contribution income for General Takaful 2,677 2,204 Claims paid for Family Takaful - 600 Claims paid for General Takaful 1,726 183

Holding company Dividend paid 41,372 36,003

Related companies Contribution income for General Takaful 626 2,457 Claims paid for Family Takaful - 229 Claims paid for General Takaful 9,685 215 Investment income 1,911 970 Lease rental expense - 99 Rental income 2,567 2,640 Commision paid 232 370 Bank commissions 708 415



42. Related parties (continued)

The significant outstanding balances of the Group and of the Company as at 31 December 2013 with its related parties, are as follows:


Takaful Operator Bank balances 770 149 Fixed and call deposits - 2,454 770 2,603

Family Takaful Bank balances 22,941 2,261 Fixed and call deposits 11,055 28,229

33,996 30,490

General Takaful Bank balances 36,824 174 Fixed and call deposits 2,120 7,473

38,944 7,647

Group / Company Bank balances 60,535 2,584 Fixed and call deposits 13,175 38,156

73,710 40,740

43. Contingencies

The Group subsidiary in Indonesia, P.T. Asuransi Takaful Keluarga, was served with additional tax assessment for year of assessment 2007 amounting to approximately RM5.2 million (Rp19.5 billion) on 30 December 2013. The additional assessment raised by the Indonesian tax office is mainly due to the disallowance of unit linked contribution reserves (arising from the increase in value of unit linked investments) as tax deduction.

Similiar tax assessments have been raised by the Indonesian tax authorities to other conventional life insurers and takaful companies. The Indonesia Life Insurance Association (AAJI) is involved in representing the industry to address the issue specifically with the Indonesian tax authorities pertaining to the fair deduction of unit linked contribution reserve to be allowed for tax deduction with the tax authority.

The Board of Directors is of the view that they have justifiable ground to object to the additonal tax assessment. Hence no tax provision has been made. The management has submitted an objection letter to the tax office on 4 February 2014.



44. Supplementary financial information on the breakdown of realised and unrealised profits or losses

The breakdown of the retained profits of the Group and of the Company as at 31 December, into realised and unrealised profits, pursuant to Paragraphs 2.06 and 2.23 of the Bursa Malaysia Main Market Listing Requirements, are as follows:


Total retained profits of the Company and its subsidiaries: - Realised 319,388 261,790 370,775 310,188 - Unrealised 47,869 39,289 28,398 18,050

367,257 301,079 399,173 328,238 Total share of retained profits of associates: - Realised - - - - - Unrealised - - - -

367,257 301,079 399,173 328,238 Add: Consolidation adjustments 32,234 27,221 - -

Total retained profits 399,491 328,300 399,173 328,238

The determination of realised and unrealised profits is based on the Guidance of Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants on 20 December 2010.


No Lokasi/Location

PeneranganKegunaan/Description ofExisting Use

Hakmilik/Tenure

UsiaBangunan/Age ofBuilding(tahun/years)

Keluasan Tanah,Kawasan Bina/Land, Built-up Area (kaki persegi/square feet)

Nilai BukuBersih pada/Net BookValue as at31.12.2013(RM)

TarikhPenilaianSemula/Date ofRevaluation

1 No. 325A & 325B Blok 41, KompleksPerniagaan Fajar91000 TawauSabah

Tiga unit KompleksPerniagaan/ Pejabat 4 tingkatThree units of 4 storeyCommercial Complex/Office

Pajakan bandar 999 tahun berakhir pada 31.12.2895999 years town lease expiring on 31.12.2895

22 4,025/6,037

2,950,000 31.12.2013

2 No. 64 & 65 Kompleks JitraJalan Sungai Korok06000 JitraKedah Darul Aman

Dua unit Rumah kedai/Pejabat 2 tingkatTwo units of 2 storeyShophouse/Office

Pegangan bebasFreehold

27 3,095/6,935

1,080,000 31.12.2013

3 No. 23 Medan Istana 3Bandar Ipoh Raya30450 IpohPerak Darul Ridzuan

Satu unit Rumah kedai/Pejabat 3 tingkatOne unit of 3 storeyShophouse/Office

Pajakan 99 tahun berakhir pada 30.03.208199 years lease expiring on 30.03.2081

18 1,539/4,255

550,000 31.12.2013

4 No. 84 Batu 3 1/4Jalan Gombak53000 Kuala Lumpur



27 1,883/8,700

1,388,000 31.12.2013

5 Lot 54 & 55Bandar Wilayah JasaJalan Bunga Raya91100 Lahad DatuSabah


Pajakan bandar 99 tahun berakhir pada 31.12.209099 years town lease expiring on 31.12.2090

18 2,400/7,200

1,680,000 31.12.2013

6 No. 24Jalan USJ 10/1B47620 UEPSubang JayaSelangor Darul Ehsan



19 3,200/9,600

5,140,000 31.12.2013

7 No. 15 & 17Jalan KelibangLangkawi Mall07000 Kuah LangkawiKedah Darul Aman



20 1,440/7,720

650,000 31.12.2013

A. PELABURAN HARTANAH / INVESTMENT PROPERTIES

Maklumat Hartanah



No Lokasi/Location


Hakmilik/Tenure

UsiaBangunan/ Age ofBuilding(tahun/years)




8 No. 26 & 28Jalan Perda BaratBukit MertajamSeberang Prai14000 Penang



15 3,293/8,840

1,200,000 31.12.2013

9 No. 433 & 434Jalan Kulas93400 KuchingSarawak



18 3,589/12,855

3,550,000 31.12.2013

10 No. 312Jalan Bandar 13Taman Melawati53100 Kuala Lumpur



19 1,920/7,070

1,653,000 31.12.2013

11 No. 20, Fasa 1AJalan Haji Manan86000 KluangJohor Darul Takzim


Pajakan 99 tahun berakhir pada 10.12.210899 years lease expiring on10.12.2108

17 2,658/9,930

2,000,000 31.12.2013

12 Lot 13 & 14Lazenda Commercial CentreJalan Okk Abdullah87007 WilayahPersekutuan Labuan

Dua unit bangunanPejabat 3 tingkatTwo units of 3 storeyOffice building


19 2,504/7,200

2,200,000 31.12.2013

13 No. 1 & 2Jalan KelicapTaman Pekan Baru34200 Parit BuntarPerak Darul Ridzuan



26 3,956/7,044

790,000 31.12.2013

14 No. 46 & 47Jalan Rahmat83000 Batu PahatJohor Darul Takzim

Dua unit Rumah kedai/Pejabat 4 tingkatTwo units of 4 StoreyShophouse/Office


24 3,220/12,092

1,480,000 31.12.2013

15 No. 180 & 181Jalan Tuan Hitam22000 JertehTerengganu Darul Iman



23 3,200/12,250

1,714,000 31.12.2013

Maklumat Hartanah



No Lokasi/Location


Hakmilik/Tenure





16 Lot 82, 84 & 86Jalan Rugbi 13/30Seksyen 1340100 Shah AlamSelangor Darul Ehsan

Tiga unit Rumah kedai/Pejabat 2 tingkatThree units of 2 storeyShophouse/Office


14 6,339/11,309

3,047,000 31.12.2013

17 No. 229Jalan Shahab 2Shahab PerdanaJalan Sultanah Sambungan05350 Alor StarKedah Darul Aman

Satu unit Rumah kedai/Pejabat 2 1/2 tingkatOne unit of 2 1/2 storeyShophouse/Office


17 1,400/3,570

500,000 31.12.2013

18 Lot No. 3803Jalan Dato’ Ulu Muar72000 Kuala PilahNegeri Sembilan Darul Khusus



14 2,001/3,120

523,300 31.12.2013

19 No. 45Jalan Teluk Sisek25000 KuantanPahang Darul Makmur



13 3,200/8,019

2,500,000 31.12.2013

20 No. 27Pusat Komersil Temerloh28000 TemerlohPahang Darul Makmur

Satu unit Rumah kedai/Pejabat 2 1/2 tingkatOne unit of 2 1/2 storeyShophouse/Office


13 1,398/5,017

676,000 31.12.2013

21 No. 2 & 4Jalan 6C/743650 Bandar Baru BangiSelangor Darul Ehsan



26 6,383/8,032

1,914,000 31.12.2013

22 Lot 14Seremban City CentreJalan Tuanku Munawir70000 SerembanNegeri Sembilan Darul Khusus



17 1,500/14,589

3,644,000 31.12.2013

Maklumat Hartanah



No Lokasi/Location


Hakmilik/Tenure





23 No. 29, Jalan DelimaPusat Perdagangan Pontian82000 PontianJohor Darul Takzim



12 3,899/10,248

1,640,000 31.12.2013

24 Lot 1129 & 1130Bangunan Darul TakafulJalan Sultan Ismail20100 Kuala TerengganuTerengganu Darul Iman

Satu unit bangunanPejabat 12 tingkatOne unit of 12 storeyOffice building

Pajakan kecil 35 tahun berakhir pada 27.02.203735 years sub lease expiring on 27.02.2037

11 3,600/23,637

6,390,000 31.12.2013

25 No. 616 & 617Jalan Besar73000 TampinNegeri Sembilan Darul Khusus



21 4,498/8,685

1,694,000 31.12.2013

26 No. 6Jalan 6C/743650 Bandar Baru BangiSelangor Darul Ehsan


Pajakan 99 tahun berakhir pada 08.07.2086 99 years lease expiring on08.07.2086

26 1,905/3,508

763,000 31.12.2013

27 Suite 3B/GBlok 3B, Plaza SentralJalan Stesen Sentral 550470 Kuala Lumpur

Satu tingkat bangunanPejabat 22 tingkatOne floor of 22 storeyOffice building


12 6,409* 8,500,000 31.12.2013

28 No. 26 & 27Jalan TanjungPasar Baru18500 MachangKelantan Darul Naim



32 1,600/4,000

700,000 31.12.2013

29 No. 330 & 331Jalan Sultan Yahya Petra15720 Kota BharuKelantan Darul Naim

Dua unit bangunanPejabat 4 1/2 tingkatTwo units of 4 1/2storey Office building


31 3,200/15,200

2,032,000 31.12.2013

Maklumat Hartanah



No Lokasi/Location


Hakmilik/Tenure





30 Menara Takaful MalaysiaNo.4, Jalan Sultan Sulaiman50000 Kuala Lumpur

Dua unit bangunanPejabatBlok Utama - 26 tingkatBlok Annex - 29 tingkatTwo units ofOffice buildingMain Block - 26 storeyAnnexeBlock–29Storey


Blok Utama/Main Block- 40Blok Annex/AnnexeBlock- 33

90,427/393,508

170,000,000 31.12.2013

31 No. 2408Taman Samudera32040 Sri ManjungPerak Darul Ridzuan



17 2,800/5,300

800,000 31.12.2013

32 No. 76A & 76Pusat PerniagaanJalan Tupai34000 TaipingPerak Darul Ridzuan



10 3,134/18,304

1,530,000 31.12.2013

33 No. 10 & 11Jalan Sultan Yahya Petra15200 Kota BharuKelantan Darul Naim



11 3,852/9,120

2,179,000 31.12.2013

34 No. 4197Jalan Teluk Wanjah05200 Alor StarKedah Darul Aman



11 8,716/18,440

1,800,000 31.12.2013

35 No. 10 & 8Jalan Padi Emas 5/2Bandar Baru UDA81200 Johor BharuJohor Darul Takzim



8 3,080/8,024

1,900,000 31.12.2013

36 No. 4Kompleks Seri TeminJalan Ibrahim08000 Sungai PetaniKedah Darul Aman



28 1,400/5,510

670,000 31.12.2013

Maklumat Hartanah



No Lokasi/Location


Hakmilik/Tenure





37 No. 16, JalanCenderawasihJalan Kilang Lama09000 KulimKedah Darul Aman



14 1,600/4,172

400,000 31.12.2013

38 Lot 1340Miri WaterfrontCommercial Centre98000 Miri Sarawak


Pajakan 60 tahun berakhir30.09.206660 years expiring on 30.09.2066

9 1,400/5,500

1,384,000 31.12.2013

39 No. 6, Jalan Padi Emas5/2, Bandar Baru UDA81200 Johor BharuJohor Darul Takzim


Pajakan 99 tahun berakhir pada 16.02.209999 years lease expiringon 16.02.2099

8 1,540/4,012

950,000 31.12.2013

40 No. 148, KompleksMunshi Abdullah75200 Melaka

Satu unit bangunanPejabat 4 1/2 tingkatOne unit of 4 1/2 storeyOffice building

Pajakan 99 tahun berakhir pada 23.04.210299 years lease expiringon 23.04.2102

20 1,470/6,117

1,014,000 31.12.2013

41 No. 16474 & 16475Pusat Perniagaan InderapuraJalan Tras RaubPahang Darul Makmur



14 3,218/9,280

1,610,000 31.12.2013

Jumlah/Total 246,785,300

* Kawasan Bina/Built-up Area

Maklumat Hartanah



No Lokasi/Location


Hakmilik/Tenure





1 No. 435Jalan Kulas93400 KuchingSarawak



18 1,214/4,262

1,370,000 31.12.2013

No Lokasi/Location


Hakmilik/Tenure

UsiaBangunan/Building(tahun/years)




1 Lot 28, 30 & 32 Jalan 2/3A Pasar Borong68100 SelayangSelangor Darul Ehsan

Tiga unit Rumah kedai/Pejabat 4 tingkatThree units of 4 storeyShophouse/Office


26 4,447/16,800

2,850,000 31.12.2012

2 Lot 12680Level 1 & MezzanineJalan Bukit Timbalan80000 Johor BharuJohor Darul Takzim

Dua tingkat bangunanPejabat 13 tingkatTwo floors of 13 storeyOffice building


15 8,354* 1,730,000 31.12.2012

3 Lot 12680, Level 3Jalan Bukit Timbalan80000 Johor BharuJohor Darul Takzim

Satu tingkat bangunanPejabat 13 tingkatOne floor of 13 storeyOffice building


15 6,594* 1,000,000 31.12.2012

4 No. 29 & 31Pusat Komersil Temerloh28000 TemerlohPahang Darul Makmur

Dua unit Rumah kedai/Pejabat 2 1/2 tingkatTwo units of 2 1/2 storeyShophouse/Office


13 2,796/10,034

1,260,000 31.12.2012

B. HARTANAH YANG DIHUNI-SENDIRI / SELF-OCCUPIED PROPERTY

* Kawasan Bina/Built-up Area

C. ASET PEGANGAN UNTUK DIJUAL / ASSET HELD FOR SALE

Maklumat Hartanah



MODAL SAHAM / SHARE CAPITAL

Modal Dibenarkan : 500,000,000 saham biasa bernilai RM1.00 sesahamAuthorised Capital 500,000,000 ordinary shares of RM1.00 each

Modal yang diterbitkan dan dibayar sepenuhnya pada 19 Februari 2014 : 162,817,000 saham biasa bernilai RM1.00 sesahamIssued and fully paid-up capital as at 19 February 2014 162,817,000 ordinary shares of RM1.00 each

Jumlah pemegang saham pada 19 Februari 2014 : 2,344No. of shareholders as at 19 February 2014

Kelas saham : Saham biasa bernilai RM1.00 sesahamClass of shares Ordinary shares of RM1.00 each

Hak mengundi : 1 undi bagi setiap saham biasaVoting right 1 vote per ordinary share

PEMEGANG-PEMEGANG SAHAM UTAMA (5% DAN LEBIH) PADA 19 FEBRUARI 2014SUBSTANTIAL SHAREHOLDERS’ SHAREHOLDINGS (5% AND ABOVE) AS AT 19 FEBRUARY 2014

Nama Pemegang Saham Jumlah Saham Peratus (%)Name of Shareholders Number of Shares Percentage (%))

BIMB Holdings Berhad 98,504,285 60.50Citigroup Nominees (Tempatan) Sdn Bhd 13,361,720 8.21

(Employees Provident Fund Board)

Jumlah / Total 111,866,005 68.71

PEGANGAN SAHAM PARA PENGARAH PADA 19 FEBRUARI 2014DIRECTORS’ SHAREHOLDINGS AS AT 19 FEBRUARY 2014

Nama Pengarah Jumlah Saham Peratus (%)Name of Directors Number of Shares Percentage (%)

Dato’ Paduka Ismee Ismail - -Dato’ Mohamed Hassan Kamil - -Datuk Rozaida Omar - -Mahadzir Azizan - -Dato’ Sulaiman Mohd Yusof - -Johan Abdullah - -Zakaria Ismail - -Dato’ Othman Abdullah - -




ANALISA PEGANGAN SAHAM MENGIKUT SAIZ PADA 19 FEBRUARI 2014ANALYSIS BY SIZE OF SHAREHOLDINGS AS AT 19 FEBRUARY 2014

Bilangan Jumlah Saiz Pegangan Saham Pemegang Saham Peratus (%) Pegangan Saham Peratus (%) Number Number Size of Shareholdings of Shareholders Percentage (%) of Shareholders Percentage (%)

Kurang dari 100Less than 100 582 24.83 5,961 0.00

100 - 1,000 662 28.24 372,167 0.23

1,001 - 10,000 844 36.01 2,526,692 1.55

10,001 - 100,000 183 7.81 5,816,500 3.57

100,001 sehingga kurang daripada 71 3.03 46,315,475 28.455% saham diterbitkan

100,001 to less than 5% of issued shares

5% dan lebih saham diterbitkan 2 0.09 107,780,205 66.205% and above of issued shares

Jumlah / Total 2,344 100.00 162,817,000 100.00

TIGA PULUH (30) PEMEGANG SAHAM TERBESAR PADA 19 FEBRUARI 2014THIRTY (30) LARGEST SHAREHOLDERS AS AT 19 FEBRUARY 2014

Nama Pemegang Saham Jumlah Saham Peratus (%)Name of Shareholders Number of Shares Percentage (%)

BIMB Holdings Berhad 98,504,285 60.50

Citigroup Nominees (Tempatan) Sdn Bhd 9,275,920 5.70(Employees Provident Fund Board)

Bimsec Nominees (Asing) Sdn Bhd 7,000,000 4.30(Islamic Development Bank)

Amsec Nominees (Tempatan) Sdn Bhd 5,261,200 3.23(Amtrustee Berhad for CIMB Islamic Dali Equity Growth Fund (UT-CIMB-DALI))

AmanahRaya Trustees Berhad 3,015,000 1.85(Public Islamic Select Treasures Fund)

Lembaga Kemajuan Tanah Persekutuan (FELDA) 2,961,400 1.82

Citigroup Nominees (Tempatan) Sdn Bhd 2,596,700 1.59(Exempt An for American International Assurance Berhad)




TIGA PULUH (30) PEMEGANG SAHAM TERBESAR PADA 19 FEBRUARI 2014 (sambungan)THIRTY (30) LARGEST SHAREHOLDERS AS AT 19 FEBRUARY 2014 (continued)


Cartaban Nominees (Tempatan) Sdn Bhd 2,379,900 1.46(Exempt An for Eastspring Investments Berhad)

Citigroup Nominees (Tempatan) Sdn Bhd 2,112,500 1.30(Employees Provident Fund Board (CIMB PRIN))

Employees Provident Fund Board 1,500,000 0.92

CIMB Group Nominees (Tempatan) Sdn Bhd 1,296,100 0.80(Amtrustee Berhad for CIMB Islamic Dali Equity Theme Fund)

Citigroup Nominees (Tempatan) Sdn Bhd 917,500 0.56(Kumpulan Wang Persaraan (Diperbadankan) (CIMB Equities))

Maybank Nominees (Tempatan) Sdn Bhd 791,800 0.49(Etiqa Takaful Berhad (Family PRF EQ))

Amanah Raya Berhad 727,000 0.45(Kumpulan Wang Bersama Syariah)

Citigroup Nominees (Tempatan) Sdn Bhd 681,800 0.42(Universal Trustee (Malaysia) Berhad for CIMB-Principal Equity Fund)

HSBC Nominees (Asing) Sdn Bhd 637,300 0.39(BBH and Co Boston for Prusik Asian Smaller Companies Fund Public Limited Company)

T. O. Lim Holdings Sdn Bhd 570,000 0.35

Universiti Sains Malaysia 500,000 0.31

AmanahRaya Trustees Berhad 492,300 0.30(Public Islamic Opportunities Fund)

Meng Hin Holdings Sdn Bhd 489,300 0.30

Citigroup Nominees (Tempatan) Sdn Bhd 473,300 0.29(Employees Provident Fund Board (PHEIM))

HSBC Nominees (Asing) Sdn Bhd 459,600 0.28(Exempt An for JPMorgan Chase Bank,National Association (Norges BK))

Amsec Nominees (Tempatan) Sdn Bhd 444,900 0.27(Amtrustee Berhad for Apex Dana Al-Sofi-I (UT-APEX-SOFI))

Citigroup Nominees (Tempatan) Sdn Bhd 439,200 0.27(Bank Negara Malaysia National Trust Fund (CIMB))




TIGA PULUH (30) PEMEGANG SAHAM TERBESAR PADA 19 FEBRUARI 2014 (sambungan)THIRTY (30) LARGEST SHAREHOLDERS AS AT 19 FEBRUARY 2014 (continued)


HSBC Nominees (Tempatan) Sdn Bhd 433,600 0.27(HSBC (M) Trustee Bhd for Pertubuhan Keselamatan Sosial (CIMB-P 6939-404))

Citigroup Nominees (Asing) Sdn Bhd 431,200 0.26(CBNY for DFA Emerging Markets Small Cap Series)

HSBC Nominees (Tempatan) Sdn Bhd 404,100 0.25(HSBC (M) Trustee Bhd for Hwang Ai Iman Growth Fund (4207))

Amin Baitulmal Johor 400,000 0.25

Majlis Agama Islam dan Adat Melayu Perak Darul Ridzuan 400,000 0.25

HLB Nominees (Tempatan) Sdn Bhd 393,000 0.24(Pledged Securities Account for Ashfak Ahmad Bin Alarakha)

Jumlah / Total 145,988,905 89.67




TAKAFUL myCARE CENTRES

MENARA TAKAFUL MALAYSIATingkat Bawah, Blok UtamaMenara Takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 Kuala Lumpur

PETALING JAYANo. 10-2 & 12-2, Tingkat 1Jalan 14/22, The Right Angle46100 Petaling JayaSelangor Darul Ehsan

SHAH ALAMTingkat BawahLot No. 82, 84, 86Jalan Rugbi 13/30, Seksyen 1340100 Shah AlamSelangor Darul Ehsan

PUTRAJAYALot 11F, Tingkat 1, Blok E16Parcel E, Precinct 1 Anjung62000 Putrajaya

IPOHNo. 23, Medan Istana 3Bandar Ipoh Raya30000 IpohPerak Darul Ridzuan

BANDAR PERDANo. 28, Jalan Perda Barat 1Bandar Baru Perda14000 Bukit MertajamPulau Pinang

GELUGORNo. 2480, Tingkat BawahJalan Sultan Azlan Shah11700 GelugorPulau Pinang

ALOR SETARNo. 229Jalan Shahab 2Shahab PerdanaJalan Sultanah Sambungan05150 Alor SetarKedah Darul Aman

SUNGAI PETANINo. 4, Kompleks Seri TeminJalan Ibrahim, 08000 Sungai PetaniKedah Darul Aman

IBU PEJABAT /HEAD OFFICE

SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K)26th Floor, Annexe Block, Menara Takaful MalaysiaNo. 4, Jalan Sultan Sulaiman, 50000 Kuala LumpurP.O. Box 11483, 50746 Kuala LumpurTel : +603-2268 1984Fax : +603-2274 0237Toll Free : 1-300-8-TAKAFUL (8252385)Email : [email protected] : www.takaful-malaysia.com.my

SEREMBANSuite14–2,Tingkat2Seremban City CentreJalan Tuanku Munawir70000 SerembanNegeri Sembilan Darul Khusus

MELAKA148, Kompleks Munshi AbdullahJalan Munshi Abdullah 75100 Melaka

BATU PAHATTingkat BawahNo. 46, Jalan Rahmat83000 Batu PahatJohor Darul Takzim

JOHOR BAHRUTingkat Bawah, No. 5, Jalan Setia Tropika 1/30Taman Setia Tropika81200 Johor BahruJohor Darul Takzim

KUALA TERENGGANUTingkat 2Jalan Sultan Ismail20100 Kuala TerengganuTerengganu Darul Iman

KOTA BHARULot 331 & 332, Tingkat BawahJalan Sultan Yahya Petra Wakaf Siku15200 Kota BharuKelantan Darul Naim

KUANTANNo. 45, Tingkat BawahJalan Teluk Sisek25000 KuantanPahang Darul Makmur

TEMERLOHNo. 27, Jalan Dato’ Bahaman 3Pusat Dagangan Temerloh28000 TemerlohPahang Darul Makmur

MIRILot 1340, Tingkat Bawah & 1Miri Waterfront, Commercial Centre Jalan Waterfront98000 Miri, Sarawak

KUCHINGNo. 435, Tingkat 1 & 2Bangunan Tuanku Haji Mohammad Al-EdrusJalan Kulas, 93400 KuchingSarawak

KOTA KINABALULot A 202 & 203Tingkat 2, Blok AWisma MUIS, Jalan Tengku Abdul Rahman88850 Kota KinabaluSabah

TAKAFUL RETAIL CENTRES

KL SENTRALLot CS/3B/GTingkat Bawah Plaza Sentral Jalan Stesen Sentral 550470 Kuala Lumpur

IFiC JOHOR BAHRUGround FloorMenara TH Johor BahruPTB 20485, Jalan Ayer Molek80000 Johor BahruJohor Darul Takzim

TAKAFUL myDESK

TABUNG HAJI CAWANGAN JALAN TUN RAZAK2nd Floor, Menara Tabung Haji201, Jalan Tun Razak50732 Kuala LumpurTel : 03-2162 1307 : 03-2164 7446

TABUNG HAJI CAWANGAN BAGAN SERAIBangunan Tabung HajiNo. 110, Jalan Besar34300 Bagan SeraiPerak Darul RidzuanTel : 05-721 0320 : 012-505 2009Fax : 05-721 0323

TABUNG HAJI CAWANGAN BUTTERWORTHBangunan TH, No. 2828-G-1Jalan Bagan Luar12000 ButterworthPulau PinangTel : 04-323 2892

TABUNG HAJI CAWANGAN BENTONGBangunan Tabung HajiJalan Ah Peng28700 BentongPahang Darul MakmurTel : 09-2220 840Fax : 09-2220 839

TABUNG HAJI CAWANGAN KOTA TINGGIBangunan Tabung HajiNo. 24, Jalan Niaga 181900 Kota TinggiJohor Darul TakzimTel : 07-883 2880 : 012-774 7553Fax : 07-882 2790

TABUNG HAJI CAWANGAN TANAH MERAHTingkat 1, Bangunan THLot 211, Jalan Hospital17500 Tanah MerahKelantan Darul NaimTel : 09-955 7411Fax : 09-955 7413

TABUNG HAJI CAWANGAN KUALA PILAHBangunan Tabung HajiLot No 234Jalan Dato’ Undang Johol72000 Kuala PilahNegeri Sembilan Darul KhususTel : 06-481 0971Fax : 06-481 0972

SYARIKAT SUBSIDIARI /SUBSIDIARY COMPANIES

ASEAN RETAKAFUL INTERNATIONAL (L) LTD. (LL01129) (in members’ voluntary liquidation)Level 14, Blok 4Financial Park ComplexJalan Merdeka87000 Wilayah Persekutuan LabuanTel : 087-451 301 : 087-451 302Fax : 087-451 300

PT SYARIKAT TAKAFUL INDONESIAGraha A, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta, 12790 IndonesiaTel : 6221-799 1234 : 6221-799 2345Fax : 6221-790 1435

PT ASURANSI TAKAFUL KELUARGAGraha B, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta, 12790 IndonesiaTel : 6221-799 1234 : 6221-799 2345Fax : 6221-790 1435

PT ASURANSI TAKAFUL UMUMGraha A, Graha Takaful Indonesia Jalan Mampang Prapatan RayaNo. 100, Jakarta, 12790 IndonesiaTel : 6221-799 1234 : 6221-799 2345Fax : 6221-790 1944

Rangkaian Cawangan & Syarikat Subsidiari

Branch Network & Subsidiary Companies

This page has been intentionally left blank.

NO RESOLUSI / RESOLUTION MENYOKONG /FOR

MENENTANG /AGAINST

1 Untuk menerima Penyata-penyata Kewangan yang telah diaudit bagi tahun kewangan berakhir 31 Disember 2013, beserta laporan Pengarah dan Juruaudit berkaitan dengannya.To receive the Audited Financial Statements for the financial year ended 31 December 2013, together with the reports of the Directors and auditors thereon.

2 Untuk meluluskan dividen akhir sebanyak 40% tier tunggal bagi tahun kewangan berakhir 31 Disember 2013. To approve a final dividend of 40% single tier in respect of the financial year ended 31 December 2013.

Untuk melantik semula Pengarah-pengarah berikut yang bersara menurut Artikel 62 Tataurusan Pertubuhan Syarikat:-To re-elect the following Directors, each of whom retires pursuant to Article 62 of the Company’s Articles of Association:

3 Dato’ Mohamed Hassan Kamil

4 Johan Abdullah

5 Datuk Rozaida Omar

6 Untuk meluluskan bayaran yuran Pengarah-pengarah sebanyak RM696,000 bagi tahun kewangan berakhir 31 Disember 2013. (RM783,000 bagi tahun kewangan berakhir 31 Disember 2012) To approve the payment of the Directors’ fees of RM696,000 for the financial year ended 31 December 2013. (RM783,000 for the financial year ended 31 December 2012)

7 Untuk meluluskan bayaran yuran Ahli-ahli Badan Penasihat Syariah sebanyak RM168,000 bagi tahun kewangan berakhir 31 Disember 2013. (RM193,000 bagi tahun kewangan berakhir 31 Disember 2012)To approve the payment of Shariah Advisory Body Members’ fees of RM168,000 for the financial year ended 31 December 2013. (RM193,000 for the financial year ended 31 December 2012)

8 Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran Juruaudit.To re-appoint Messrs KPMG Desa Megat & Co. as the Auditors of the Company and to authorise the Directors to fix their remuneration.

9 Cadangan Mandat Pemegang-Pemegang Saham bagi Urusniaga-Urusniaga yang Berulang dengan Pihak Berkaitan.Proposed Shareholders’ Mandate for Recurrent Related Party Transactions.

JUMLAH SAHAMNO. OF SHARES

Pada / Dated this ......... haribulan / day of ......... 2014

Saya / Kami / I / We...................................................................................................................................................................................................................................................................................................(Nama Penuh Pemegang Saham / Full Name of Shareholder)

NRIC No./ Passport No./ Company No...............................................................................................................................................................................................................................................................

dari / of.........................................................................................................................................................................................................................................................................................................................(Alamat / Address)

No. Telefon / Telephone no .......................................................................................... sebagai ahli / ahli - ahli Syarikat Takaful Malaysia Berhad (“Syarikat”) dengan ini melantik / being a member / members of Syarikat Takaful Malaysia Berhad (“the Company”), hereby appoint;

.........................................................................................................................................................................................................................................................................................................................................(Nama Penuh & NRIC No / Full name & NRIC No)


dan/ atau jika beliau tidak dapat hadir/ and/ or failing him/her:

.........................................................................................................................................................................................................................................................................................................................................(Nama Penuh & NRIC No / Full name & NRIC No)


atau jika beliau tidak dapat hadir, Pengerusi Mesyuarat sebagai proksi saya / kami untuk mengundi bagi pihak saya / kami di MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD yang KEDUA PULUH SEMBILAN yang akan diadakan di Dewan Ahmad Mohamed Ibrahim, Tingkat 5, Blok Annex, Menara Takaful Malaysia, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur pada hari Selasa, 22 April 2014 pada jam 10:00 pagi dan pada sebarang penangguhannya.or failing him, the Chairman of the Meeting as my / our proxy to vote for me / us on my / our behalf at the TWENTY NINTH ANNUAL GENERAL MEETING of SYARIKAT TAKAFUL MALAYSIA BERHAD to be held at Dewan Ahmad Mohamed Ibrahim, 5th Floor, Annexe Block, Menara Takaful Malaysia, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur on Tuesday, 22 April 2014 at 10:00 a.m and any adjournment thereof.

Sila tandakan “X” di dalam ruang yang disediakan di bawah bagaimana anda ingin mengundi untuk resolusi-resolusi berikut. Sekiranya tiada arahan-arahan tertentu, proksi anda akan mengundi atau tidak mengundi sepertimana yang dia anggap patut. Jika anda melantik dua proksi, sila nyatakan bahagian pegangan untuk diwakilkan kepada setiap proksi.Please indicate an “X” in the space provided below, how you wish your vote to be cast in respect of the following resolutions. In the absence of specific directions, your proxy may vote or abstain at his/her discretion. If you appoint two proxies, please specify the proportions of holdings to be represented by each proxy.

Wakil saya / kami akan mengundi seperti berikut / My / Our proxy is to vote as indicated hereunder:

BORANG PROKSI/PROXY FORMFOR 29TH AGM SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K)

(Diperbadankan di Malaysia di bawah Akta Syarikat, 1965/Incorporated in Malaysia under the Companies Act, 1965)

Tandatangan/ Cop Mohor Pemegang Saham Signature/ Common Seal of Shareholders

Untuk pelantikan dua proksi, jumlah saham dan peratusan pemegangan saham yang akan diwakili oleh proksi-proksi adalah seperti berikut/For appointment of two proxies, the number of shares and percentage of shareholdings to be represented by the proxies are as follows:

Jumlah saham /No. of shares

Peratus / Percentage

Proksi 1 / Proxy 1

Proksi 2 / Proxy 2

Jumlah / Total 100%

Setiausaha Syarikat / The Company SecretarySyarikat Takaful Malaysia BerhadTingkat 26, Blok AnnexMenara Takaful MalaysiaNo. 4, Jalan Sultan Sulaiman50000 Kuala Lumpur

stamp

Nota-Nota:(i) Seorang ahli Syarikat yang berhak menghadiri dan mengundi di mesyuarat ini layak untuk melantik tidak lebih daripada dua (2) proksi untuk menghadiri dan mengundi bagi pihaknya

pada mesyuarat yang sama dan proksi itu tidak semestinya seorang ahli Syarikat.(ii) Sekiranya ahli Syarikat melantik dua (2) proksi, pelantikan tersebut akan menjadi tidak sah melainkan beliau menyatakan nisbah pegangan yang akan diwakili oleh setiap proksi. (iii) Sekiranya ahli Syarikat adalah nomini berkecuali yang dibenarkan seperti yang ditakrifkan di bawah Akta Perindustrian Sekuriti 1991 (Depositori Pusat) yang memegang saham-saham

biasa Syarikat untuk beberapa pemilik benefisial dalam satu akaun sekuriti (“akaun omnibus”), tidak ada had untuk bilangan proksi yang boleh dilantik oleh nomini berkecuali yang dibenarkan bagi setiap akaun omnibus yang dipegangnya.

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

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

(vi) Hanya ahli yang tersenarai di dalam Rekod Pendeposit pada 15 April 2014 yang layak untuk hadir, bersuara dan mengundi pada AGM atau melantik seorang proksi (proksi-proksi) untuk hadir, bersuara dan/atau mengundi bagi pihak mereka.

Notes:(i) A member of the Company entitled to attend and vote at this meeting is entitled to appoint not more than two (2) proxies to attend and to vote instead of him at the same meeting and a proxy

need not be a member of the Company.(ii) Where a member of the Company appoints two (2) proxies, the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. (iii) Where a member of the Company is an exempt authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991 which holds ordinary shares in the Company for

multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds.

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

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

(vi) Only members whose names appear in the Record of Depositors on 15 April 2014 shall be eligible to attend, speak and vote at the AGM or appoint proxy(ies) to attend, speak and/or vote on their behalf.

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02 LAPORAN TAHUNAN - takaful-malaysia.com.my · Bursa Malaysia Depository Sdn Bhd, in accordance...

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