Laporan Tahunan 2008 Annual Report - ECM Libra · Laporan Tahunan 2008 Annual Report ... 34 Cash...

Laporan Tahunan 2008 Annual Report

ECM Libra Financial Group Berhad (713570-K)

(formerly known as ECM Libra Avenue Berhad)

contents

3 CorporateInformation

4 Directors’Profile

8 BoardAudit&RiskManagement CommitteeReport

10 CorporateGovernanceStatement

15 Directors’ResponsibilityStatement

16 Chairman’sStatement

18 NoticeofAnnualGeneralMeeting

20 StatementAccompanying NoticeofAnnualGeneralMeeting

22 Directors’Report

27 StatementbyDirectors

27 StatutoryDeclaration

28 Auditors’Report

29 IncomeStatements

30 BalanceSheets

32 StatementsofChangesinEquity

34 CashFlowStatement

37 NotestotheFinancialStatements

83 OtherInformation

FormofProxy

ECMLibraFinancialGroupBerhadANNUALREPORT20083

corporate information

DIRECTORSDato'SeriKalimullahbinMasheerulHassan(ExecutiveChairman&ChiefExecutiveOfficer)Dato'Ab.HalimbinMohyiddin(ViceChairman)MrLimKianOnn(ManagingDirector)DatukKamarudinbinMdAliDato'OthmanbinAbdullahEncikMahadzirbinAzizanMrLumSingFai

SECRETARYMsWongSeongCho

AUDITORSMessrsErnst&YoungCharteredAccountantsLevel23A,MenaraMileniumJalanDamanlelaPusatBandarDamansara50490KualaLumpurTel: 03-20877000Fax: 03-20955332

REGISTRARPFARegistrationServicesSdnBhdLevel13,Uptown1No.1JalanSS21/58DamansaraUptown47400PetalingJayaSelangorDarulEhsanTel:03-77254888Fax:03-77222311

REGISTERED OFFICE8AFloor,WismaGentingJalanSultanIsmail50250KualaLumpurTel:03-21781888Fax:03-21618818

BUSINESS ADDRESS8AFloor,WismaGentingJalanSultanIsmail50250KualaLumpurTel:03-21781888Fax:03-21618818

WEBSITEwww.ecmlibra.com

LISTINGMainBoardofBursaMalaysiaSecuritiesBerhad

4ECMLibraFinancialGroupBerhadANNUALREPORT2008

directors’ profile

Dato’SeriKalimullahbinMasheerulHassanExecutiveChairman&ChiefExecutiveOfficer/Non-Independent

Dato'SeriKalimullahbinMasheerulHassan,aMalaysian,aged50,beganacareerinjournalismin1979andmovedontothecorporatesector in1995.Hehasgainedvastcorporateexperience,havingheldkeypositions invariousMalaysianlistedcorporations.InSeptember2002,Dato'SeriKalimullahwasappointedaschairmanofthenationalnewsagency,Bernama,foratwo-yeartermbyDYMMYangdi-PertuanAgongbutresignedtotakeonhispositionas Group Chief-in-Editor in The News Straits Times Press (M) Bhd ("NSTP") on 1 January 2004. He left as GroupEditor-in-Chiefon31December2005uponexpiryofhiscontractandreturnedtohisfinancialservicesbusiness.Hewas appointed Deputy Chairman of NSTP on 1 January 2006. Dato' Seri Kalimullah was appointed by the FederalGovernmentasamemberoftheNationalUnityAdvisoryPanelon1January2005foratwo-yearterm.Hewasre-appointedforanothertwo-yeartermon1January2007.

Dato'SeriKalimullahwasappointedChairmanoftheBoardofDirectors("Board")ofECMLibraFinancialGroupBerhad(formerly known as ECM Libra Avenue Berhad) ("ECMLFG" or "Company") on 16 June 2006 and re-designated theExecutiveChairman&ChiefExecutiveOfficerwitheffectfrom1May2007.Heattendedallseven(7)Boardmeetingsheld during the financial year ended 31 January 2008. He was also a member of the Nomination Committee andRemunerationCommitteeduringthefinancialyearended31January2008.

Dato'SeriKalimullahistheChairmanofEkowoodInternationalBerhadandadirectorofECMLibraFoundationandECMLibra InvestmentBankBerhad(formerlyknownasECMLibraAvenueSecuritiesBerhad) ("ECMLIB"),awholly-ownedsubsidiaryofECMLFG.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.

Dato'Ab.HalimbinMohyiddinViceChairman/IndependentNon-Executive

Dato'Ab.HalimbinMohyiddin,aMalaysian,aged62,servesontheBoardofAmway(Malaysia)HoldingsBerhad,BankPembangunan Malaysia Berhad Group, Digi.Com Berhad, HeiTech Padu Berhad, Idaman Unggul Berhad, KNM GroupBerhad, MCM Technologies Berhad, Kumpulan Perangsang Selangor Berhad, Utusan Melayu Malaysia Berhad, IdrisHydraulic(Malaysia)Berhad,BICredit&LeasingBerhadandAMDBBerhad.

Dato' Ab. Halim graduated with a Bachelor of Economics (Accounting) degree from University of Malaya in 1971 andthereafter joined Universiti Kebangsaan Malaysia as a Faculty member of the Faculty of Economics. He obtained hisMastersofBusinessAdministrationdegreefromUniversityofAlberta,Canadain1973.HeretiredfromKPMGMalaysiainOctober2001,afirmhejoinedin1977andhadhisearlyaccountingtraininginbothMalaysiaandUnitedStatesofAmerica.Hewasmadepartnerofthefirmin1985.Atthetimeofhisretirement,hewasthepartner in-chargeoftheAssurance and Financial Advisory Services Divisions of the firm and was also looking after the Secured e-CommercePracticeofthefirm.

Dato'Ab.HalimwasappointedasViceChairmanofECMLFGon26March2007.Heattendedfour(4)BoardMeetingsofECMLFGheldduringthefinancialyearended31January2008.HewasalsoappointedamemberoftheNominationCommitteeandRemunerationCommitteeofECMLFGon6February2008.Hehasnofamily relationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.


directors’ profilecontinued

DatukKamarudinbinMdAliIndependentNon-Executive

DatukKamarudinbinMdAli,aMalaysian,aged58,isaretiredpolicecommissionerandalsoanAssociateoftheRoyalCollege of Defense Studies UK. He holds a Masters in Science (Engineering) from University of Birmingham, UK andBachelor of Science (Honours) (Mechanical Engineering) from University of Strathclyde Glasgow Scotland. DatukKamarudinretiredfromtheRoyalMalaysiaPolice("RMP")on4May2006withmorethan30yearsexperiencespecializingin mechanical engineering and with extensive knowledge and skills in logistic & finance management, manpowerdevelopment,strategicplanning,traininganddevelopment,recruitmentandselection,careerdevelopmentandcrimeprevention,gainedthroughwiderangeofcommandpostsandmanagerialcapacitiesheldduringhistenureofofficeinRMP.HeisactivelyinvolvedinNGOsandisnotedforhiscontributionintheMalaysianCrimePreventionFoundationofwhichheisacouncilmember.

DatukKamarudinwasappointedtotheBoardofECMLFGon16June2006.HeistheChairmanoftheBoardAudit&RiskManagementCommitteeandamemberoftheNominationCommittee.Heattendedallseven(7)Boardmeetingsheldduringthefinancialyearended31January2008.

DatukKamarudinisalsoadirectorofAnnJooResourcesBerhad,AvenueInvestBerhadandECMLIB.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.

MrLimKianOnnManagingDirector/Non-Independent

MrLimKianOnn,aMalaysian,aged51,isamemberoftheInstituteofCharteredAccountantsinEngland&WalesandtheMalaysianInstituteofAccountants.HeservedhisarticleshipwithKMGThomsonMcLintockinLondonforfouryears,thenjoinedAndersenConsultingfrom1981to1984asaseniorconsultant.Between1984and1993,hewaswithHongLeongGroup,MalaysiaasaSeniorManagerintheFinanceDivisionandsubsequentlyasanExecutiveDirectorinthestockbrokingarmresponsibleforcorporatefinance,researchandinstitutionalsales.MrLimfoundedtheLibraCapitalGroupin1994andco-foundedtheECMLibraGroupin2002.

MrLimwasappointedtotheBoardofECMLFGon16June2006andre-designatedManagingDirectorwitheffectfrom1May2007.Heattendedallseven(7)Boardmeetingsheldduringthefinancialyearended31January2008.Hewasalsoamemberof theNominationCommitteeandRemunerationCommitteeofECMLFGduringthe financialyearended31January2008.

MrLimisalsothenon-executiveChairmanofPlatoCapitalLimited,acompanyincorporatedinSingaporeandlistedontheStockExchangeofSingaporeandadirectorofECMLibraFoundation.HewasappointedActingCEO/ExecutiveDirectorofECMLIBon6February2008.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.



EnMahadzirbinAzizanIndependentNon-Executive

EnMahadzirbinAzizan,aMalaysian,aged59,isaBarrister-at-LawfromLincoln'sInn,London.HewascalledtothebarofEngland&Walesin1978andhadsinceservedinvariouscapacitiesingovernmentandprivatesectors.HeservedasFederalCounselandLegalAdviserintheMinistryofTrade&Industryin1978to1979afterwhich,heservedasAssistantCompanySecretary/LegalAdviserofMalaysiaInternationalShippingCorporationBerhad.In1983,hejoinedIsland&PeninsularBerhad("I&P"),apropertydevelopmentcompanywithinPermodalanNasionalBerhadGroupasGroupCompanySecretaryandLegalAdviser.SubsequentlyhewaspromotedasDirector,CorporateAffairs in1994.HesatontheBoardofvariouscompanieswithintheI&PGroupuntilhisretirementinApril2007andwasalsoamemberoftheBoardofMajlisAmanahRakyatfrom2000to2003.

EnMahadzirwasappointedtotheBoardofECMLFGon16June2006andattendedallseven(7)Boardmeetingsheldduringthefinancialyearended31January2008.HeistheChairmanoftheRemunerationCommitteeandmemberoftheBoardAudit&RiskManagementCommitteeofECMLFG.Subsequent to theyearend,hewasalsoappointedamemberof theNominationCommittee.

En Mahadzir is also a director of SyarikatTakaful Malaysia Berhad, Avenue Invest Berhad and ECMLIB. He has no familyrelationship with the other directors or major shareholders of ECMLFG, no conflict of interest with ECMLFG and has noconvictionforoffenceswithinthepasttenyears.

Dato'OthmanbinAbdullahIndependentNon-Executive

Dato'OthmanbinAbdullah,aMalaysian,aged59, isanaccountantbyprofessionwithextensivefinancialknowledgeandskills.Hebeganhiscareerin1977asTreasuryAccountantattheAccountantGeneral'sDepartmentandheldvariouspositions intheDepartment.HewassecondedtoSabahElectricityBoardasDeputyGeneralManager (Finance) from1987to1993andsubsequentlywastransferredbacktotheDepartmentandwasappointedasAccountantGeneralofMalaysiafrom2003to2005.

Dato'OthmanwasappointedtotheBoardofECMLFGon16June2006.Heattendedallseven(7)Boardmeetingsheldduringthefinancialyearended31January2008.HeistheChairmanoftheNominationCommitteeandamemberoftheBoardAudit&RiskManagementCommitteeofECMLFG.

Dato'OthmanisalsoadirectorofSyarikatPerumahanNegaraBerhadandECMLIB.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.



MrLumSingFaiNon-IndependentNon-Executive

MrLumSingFai,aMalaysian,aged44,istheManagingDirectorofCapitalMarketsforAmcorpGroupBerhad.

MrLum,agraduateoftheUniversityofMalayawithaBachelorofEconomics(Honours)inBusinessAdministration,hasover20yearsofextensiveexperienceinbankingandfinance.AsManagingDirectoroftheCapitalMarketsdivisionofAmcorpGroupBerhad,hehassuccessfullyledabroadrangeoffinancialserviceendeavoursduringhis13yearstenure.

PriortojoiningAmcorp,MrLumwasattachedtoSouthernBankBerhadfrom1987to1994workinginvariouscapacitiesfromoperationstocorporatebanking.HealsositsontheBoardofthecompanieswithintheAmcorpGroupBerhad.

MrLumresignedasalternatedirectortoMrSooKimWaion6February2008andwasre-appointedasdirectorofECMLFGonthesameday.Heattendedthree(3)BoardmeetingsofECMLFGheldduringthefinancialyearended31January2008.HewasappointedamemberoftheNominationCommitteeandRemunerationCommitteeofECMLFGwitheffectfrom6February2008.

MrLumisalsoadirectorofECMLIB.HehasnofamilyrelationshipwiththeotherdirectorsormajorshareholdersofECMLFG,noconflictofinterestwithECMLFGandhasnoconvictionforoffenceswithinthepasttenyears.


board audit & risk management committee report

Constitution TheBoardAudit&RiskManagementCommittee("BARMC")wasestablishedon28June2006bytheBoardofDirectors("Board").

CompositionThemembersoftheBARMCduringthefinancialyearended31January2008were:

Chairman: DatukKamarudinbinMdAli (IndependentNon-ExecutiveDirector)

Members: Dato'OthmanbinAbdullah (IndependentNon-ExecutiveDirector)

EnMahadzirbinAzizan (IndependentNon-ExecutiveDirector)

Terms of Reference

(i) ToreviewthefollowingandreportthesametotheBoardofDirectors("Board"):-

(a) nominateandrecommendapersonorpersonsasexternalauditors,andreviewtheauditfees;

(b) withtheexternalauditor,theauditplan;

(c) withtheexternalauditor,hisevaluationofthesystemofinternalaccountingcontrols;

(d) withtheexternalauditor,hisauditreport;

(e) theassistancegivenbytheemployeesoftheGroupandtheCompanytotheexternalauditor;

(f) thequarterlyresultsandyear-endfinancialstatementsoftheGroupandtheCompany,focusingparticularlyon:-

•changesinaccountingpoliciesandpractices

•significantadjustmentsarisingfromtheaudit

•significantandunusualevents

•thegoingconcernassumption

•compliancewithaccountingstandardsandotherlegalrequirements

(g) theadequacyofthescope,functionsandresourcesoftheinternalauditfunctionandthatithasthenecessaryauthoritytocarryoutitswork;and

(h) thefindingsoftheInternalAuditDepartmentoninternalauditsundertakenandmanagement'sresponseandensurethatappropriateactionistaken.

(ii) ToconsideranyrelatedpartytransactionandconflictofinterestsituationthatmayarisewithintheCompanyorGroup.

(iii) Toreviewandmonitortheadequacyandintegrityofinternalcontrolsystems,includingriskmanagementandmanagementinformationsystems.

(iv) ToconsideranyotherfunctionordutyasmaybeagreedtobytheBARMCandtheBoard.


board audit & risk management committee reportcontinued

Authority

TheBARMCisauthorisedbytheBoardtoinvestigateanymatterwithinitstermsofreference.ItshallhavefullandunrestrictedaccesstoanyinformationpertainingtotheGroupandshallhavetheresourcesitrequirestoperformitsduties.Allemployeesaredirectedtoco-operatewithanyrequestmadebytheBARMC.

TheBARMCisauthorisedbytheBoardtoobtainindependentlegalorotherexternalindependentprofessionaladvice,ifitconsidersnecessary.

TheBARMCisauthorisedbytheBoardtoobtaininformationonanyresignationofinternalauditstaffmembers.Itisfurtherauthorisedtoprovidetheresigningstaffmemberanopportunitytosubmithisreasonsforresigning.TheBARMCisauthorisedbytheBoardtoapproveanyappointmentorterminationofseniorstaffmembersoftheinternalauditfunction.

Meetings

Meetingsshallbeheldnotlessthanfour(4)timesinafinancialyear.Theexternalauditorsmayrequestameetingiftheyconsiderthatoneisnecessary.TheBARMCshallmeetwiththeexternalauditorswithoutexecutiveBoardmemberspresent,atleasttwiceinafinancialyear.MinutesofeachmeetingshallbedistributedtoeachmemberoftheBoard.

Two(2)members,whoshallbeindependentandnon-executivedirectors,shallconstituteaquorumformeetings.

TheCompanySecretaryshallbethesecretaryoftheBARMC.

TheHeadofFinance,theHeadofInternalAudit,theComplianceOfficerandarepresentativeoftheexternalauditorsshallnormallyattendthemeetings.OtherBoardmembers,employeesandexternalindependentprofessionaladvisersmayattendthemeetingsupontheinvitationoftheBARMC.

Activities

Duringthefinancialyearended31January2008,six(6)BARMCmeetingswereheldandattendedbyallBARMCmembers.

TheBARMCreviewedthequarterlyfinancialstatementsandauditedfinancialstatementsoftheGrouppriortotheBoard'sapprovalandsubsequentreleasetoBursaMalaysiaSecuritiesBerhad("BursaMalaysia").TheBARMCalsoreviewedtheexternalauditors'scopeofworkandauditplanfortheGroup,consideredsignificantchanges in accounting and auditing issues, reviewed the management letter and management's response and discussed applicable accounting and auditingstandards.TheBARMCalsoreviewedtheresourcerequirementsoftheinternalauditfunction,approvedtheinternalauditplanforthefinancialyearandrevisionsthereto,theinternalauditprogrammeandauditfindings.

Duringtheyear,theBARMCreviewedtheadequacyandintegrityofinternalcontrolsystems,includingriskmanagementandrelevantmanagementinformationsystems.Italsoreviewedtheprocessesputinplacetoidentify,evaluateandmanagethesignificantrisksencounteredbytheGroup.

In connection with the Employees' Share Option Scheme of the Group, the BARMC also verified that allocation of options was in compliance withapprovedcriteria.

Internal Audit

TheinternalauditfunctionsareorganisedonaGroupbasiswhilethedepartmentisestablishedatECMLibraInvestmentBankBerhad(formerlyknownasECMLibraAvenueSecuritiesBerhad)("ECMLIB").ThecorefunctionofInternalAuditistoperformanappraisaloftheGroup'sactivity,toprovideassuranceonandtohelpmanagementtomaintainanadequateinternalcontrolsystemandcorporategovernanceprocesses.InternalAuditDepartmentprovidesperiodicreportstotheBARMC,reportingontheoutcomeoftheauditsconducted,effectivenessofthesystemofinternalcontrolsimplementedandhighlightingkeycontrolissuesimpactingtheGroup.ThisenablestheBARMCtoexecuteitsoversightfunctionbyforminganopinionontheadequacyofmeasuresundertakenbymanagement.

Duringthefinancialyearended31January2008,theInternalAuditDepartmenthadcarriedoutitsduties,primarilyinECMLIBandAvenueInvestBerhadcoveringbusiness,financial,managementandoperationalareas.TheInternationalStandardsfortheProfessionalPracticeofInternalAuditing,BursaMalaysiaBerhad(Rule511and1202)andSecuritiesCommissionguidelinesoninternalauditareusedasauthoritativeguidelinesforinternalauditingprocedures.


corporate governance statement

TheBoardofDirectors("Board")ofECMLibraFinancialGroupBerhad(formerlyknownasECMLibraAvenueBerhad)("ECMLFG"or"Company")iscommittedtomanagetheECMLFGGroupinlinewithcorporategovernancepracticesasproposedintheMalaysianCodeonCorporateGovernance("Code").TheBoardfirmlybelievesthatcorporateaccountabilitycomplementsbusinesspracticesthatwillfacilitatetheachievementoftheCompany'sgoalsandobjectives.

Inpreparingthisstatement,theBoardispleasedtoreport,thatsaveassetoutbelow,theGrouphasappliedtheprinciplessetoutinPart1oftheCodeandhascompliedwiththebestpracticessetoutinPart2oftheCodethroughoutthefinancialyearended31January2008.

A. DIRECTORS

(i) The Board

TheCompanyisledbyaproactiveBoardwithablendofgoodmanagementandentrepreneurialskills,supportedbyindependentDirectorswhobringtotheBoardtheirdifferentfieldsoftrainingandexperiences.

TheBoardisprimarilyentrustedwiththeresponsibilityofsettingthegoalsandthedirectionoftheGroup.ItalsooverseestheconductoftheGroup'sbusinesses,ensuringvariouscontrolsystemsareinplaceaswellasregularlyevaluatingsuchsystemstoensureitsintegrity.ThecontrolsarenecessarytominimisetherisksassociatedwiththebusinessesoftheGroup.

InordertoensurethattheECMLFGGroupisefficientlymanaged,theBoardmeetsonaquarterlybasisandadditionallyasandwhenrequired,withaformalscheduleofmattersspecificallyreservedforitsdeliberationanddecision.Duringthefinancialyearunderreview,seven(7)BoardmeetingswereheldandalltheDirectorshavecompliedwiththerequirementsinrespectofBoardmeetingattendanceasprovidedintheArticlesofAssociation.

Seven(7)Boardmeetingswereheldduringthefinancialyearended31January2008andallDirectorsattendedthesaidmeetingsexceptforDato'Ab.HalimbinMohyiddinandMrSooKimWaiwhowereappointedon26March2007.Dato'Ab.HalimbinMohyiddinandMrSooKimWaiattendedfour(4)andfive(5)Boardmeetingsrespectivelyduringthefinancialyearended31January2008.

The Board collectively reviews and considers all corporate proposals prior to their implementation. Corporate proposals are put to vote aftercarefuldeliberation.TheChairmanofthemeetingshallhaveasecondorcastingvoteintheeventofatieinvotesfororagainstanyparticularproposal,exceptwhenonlytwoDirectorsarecompetenttovoteonthequestioninissue.

TheBoardisupdatedonECMLFGGroup'saffairsatBoardmeetings.TheDirectorsareencouragedtoobtaininformationontheGroup'sactivitiesbyconsultationwithseniormanagementatanytime.ThisistoensureandenabletheBoardmemberstodischargetheirdutiesandresponsibilitiescompetentlyandinaninformedmanner.

(ii) Board Balance

Forthefinancialyearended31January2008,theBoardcomprisedseven(7)Directors,five(5)ofwhomarenon-executive.Ofthenon-executiveDirectors,four(4)areindependent.ThereisacleardivisionofresponsibilitiesattheheadoftheCompanytoensureabalanceofauthorityandpower.Thewidespectrumofknowledge,skillsandexperienceoftheBoardmembersgivesaddedstrengthtotheleadershipwhichisnecessaryfortheeffectivestewardshipoftheGroup.


corporate governance statementcontinued

A. DIRECTORS (continued)

(ii) Board Balance (continued)

TheBoardrecognises the importanceandcontributionof its independentnon-executiveDirectors.They represent theelementofobjectivity,impartiality and independent judgement of the Board. This ensures that there is adequate check and balance at the Board level. The four(4) independent Directors of the Company provide the Board with vast and varied exposure, expertise and broad business and commercialexperiences.

The Executive Chairman & Chief Executive Officer leads the Board and together with the Managing Director, are responsible for the strategicdirectionoftheGroupwhiletheManagingDirectorprovidesdirectionintheimplementationofbusinessplansandstrategies.

TheBoardhasidentifiedDatukKamarudinbinMdAli,theChairmanoftheBoardAudit&RiskManagementCommittee,astheindependentnon-executiveDirectortowhomconcernsmaybeconveyed,whowouldbringthesametotheattentionoftheBoard.

AbriefprofileoftheDirectorsissetoutonpages4to7ofthisAnnualReport.

(iii) Supply of information

Boardmembersareprovidedwiththenotice,settingouttheagendaandsubsequentlythecomprehensiveBoardpapersinatimelymannerpriortoBoardmeetings.ThisistoensureandenablethemembersoftheBoardtodischargetheirdutiesandresponsibilitiescompetentlyandinawell-informedmanner.AllmembersoftheBoardhaveaccesstotheadviceandservicesoftheCompanySecretary,andwherenecessary,independentprofessionaladvisers.TheyalsohaveunlimitedaccesstoallinformationwithregardtotheactivitiesoftheECMLFGGroup.

(iv) Appointments to the Board

The Nomination Committee, which was set up on 27 September 2006 comprised three (3) independent non-executive Directors and two (2)non-independent non-executive Directors during the financial year ended 31 January 2008.The Committee is responsible for proposing andrecommendingnewnomineestotheBoardaswellasDirectorstofillseatsonBoardcommittees;assessing,onanannualbasis,theeffectivenessoftheBoard,theBoardcommitteesandthecontributionofeachindividualDirector;andannualreviewoftherequiredmixofskills,experiencesandotherqualitieswhichnon-executiveDirectorsshouldbringtotheBoard.

ThemembersoftheNominationCommitteeduringthefinancialyearended31January2008:

-Dato'OthmanbinAbdullah(Chairman)

-DatukKamarudinbinMdAli

-Dato'SeriKalimullahbinMasheerulHassan

-MrLimKianOnn

-EnIbrahimMahaludinbinPuteh(resignedon1March2007)

Sincethefinancialyear-end,theNominationCommitteewasreconstitutedon6February2008asfollows:

-Dato'OthmanbinAbdullah(Chairman)

-DatukKamarudinbinMdAli

-EnMahadzirbinAzizan

-Dato'Ab.HalimbinMohyiddin

-MrLumSingFai



A. DIRECTORS (continued)

(v) Re-election

TheArticlesofAssociationoftheCompanyprovidethatatleastone-thirdoftheDirectorsaresubjecttoretirementbyrotationateachAnnualGeneralMeetingandthatallDirectorsshallretireatleastonceineverythreeyears.TheArticlesofAssociationalsoprovidethataDirectorwhoisappointedbytheBoardinthecourseoftheyearshallbesubjecttore-electionatthenextAnnualGeneralMeetingtobeheldfollowinghisappointment.

Directorsoverseventyyearsofagearerequiredtosubmitthemselvesforre-appointmentannuallyinaccordancewithSection129(6)oftheCompaniesAct,1965.

(vi) Directors’ Training

AllDirectorsoftheCompanyhavecompletedtheMandatoryAccreditationProgramme.TheCompanydoesnothaveaformaltrainingprogrammefornewDirectorsbut they receivebriefingsandupdatesontheGroupbusinesses,operations, riskmanagement, internalcontrols, financeandanyneworchangestothecompaniesandotherrelevantlegislation,rulesandregulations.TheDirectorsareencouragedtoattendbriefingsandseminarstokeepabreastwithlatestdevelopmentsintheindustryandtoenhancetheirskillsandknowledge.

B. DIRECTORS’ REMUNERATION

TheRemunerationCommittee,whichwassetupon27September2006,comprisedtwo(2)independentnon-executiveDirectorsandtwo(2)non-independentexecutiveDirectorsduringthefinancialyearended31January2008.ThemembersoftheCommitteewere:

-EnMahadzirbinAzizan(Chairman)

-MrSooKimWai

-Dato'SeriKalimullahbinMasheerulHassan

-MrLimKianOnn

Sincethefinancialyear-end,MrSooKimWairesignedasaDirectoron6February2008andtheRemunerationCommitteewasreconstitutedasfollows:

-EnMahadzirbinAzizan(Chairman)

-Dato'Ab.HalimbinMohyiddin

-MrLumSingFai

TheCommitteeisresponsibleforrecommendingtotheBoardtheremunerationofexecutiveDirectorsandkeyseniormanagementofficersofECMLFGGroup.Directorsdonotparticipateindiscussionandvotingondecisionsregardingtheirownremuneration.TheaggregateannualDirectors'feesasrecommendedbytheBoardmustbeapprovedbyshareholdersattheAnnualGeneralMeeting.

ECMLFGhasanestablishedframeworktoevaluateperformanceandrewardforexecutiveDirectorsandallemployees.RemunerationpackagesfortheexecutiveDirectorsandemployeesareformulatedtobecompetitive,withemphasisbeingplacedonperformance,whichaimstoattract,motivateandretainalllevelsofstafftomanagetheECMLFGGroup.Fornon-executiveDirectors,thelevelofremunerationwouldcommensuratewiththeexperienceandlevelofresponsibilitiesundertakenbythem.

ThedetailsoftheremunerationoftheDirectorsofECMLFGaresetoutintheauditedfinancialstatementsonpages49&50ofthisAnnualReport.



C. SHAREHOLDERS

TheBoardplacesemphasisontimelyandequitabledisseminationofinformationtoshareholdersonECMLFGGroup'sperformance.PursuanttotheListingRequirementsofBursaMalaysia,timelyannouncementsaremadetothepublicinregardtotheGroup'scorporateproposals,financialresultsandotherrequisitematters.TheCompany'sAnnualGeneralMeetingservesasaforumfordialoguewithshareholders.AttheAnnualGeneralMeeting,shareholdersareencouragedtoparticipateinthequestionandanswersession.ThestatusofallresolutionsproposedattheAnnualGeneralMeetingissubmittedtoBursaMalaysiaattheendofthemeetingday.

Apartfromcontactsatgeneralmeetings,thereisnoformalprogrammeorscheduleofmeetingswithinvestors,shareholders,stakeholdersandthepublic generally. However, the management has the option of calling for meetings with investors/analysts if it is deemed necessary.Thus far, themanagementisoftheopinionthatthisarrangementhasbeensatisfactorytoallparties.

D. ACCOUNTABILITY AND AUDIT

(i) Financial Reporting

The Board is responsible to present a balanced and comprehensive assessment of the ECMLFG Group's financial position to shareholders bymeansoftheannualandquarterlyreportsandotherpublishedinformation.Inthisregard,theBoardisresponsibleforthepreparationoffinancialstatementsthatpresentafairandbalancedreportofthefinancialstateofaffairsoftheECMLFGGroup.

(ii) Internal Control

TheStatementonInternalControlassetoutonpages13&14ofthisAnnualReportprovidesanoverviewofthestateofinternalcontrolswithintheGroup.

(iii) Relationship with Auditors

The Company, through the Board Audit & Risk Management Committee ("BARMC"), has an appropriate and transparent relationship with theexternalauditors.KeyfeaturesunderlyingtherelationshipoftheBARMCwiththeexternalauditorsareincludedintheBARMCReportassetoutonpage9ofthisAnnualReport.

E. STATEMENT ON INTERNAL CONTROL

Responsibility

The Board is responsible for the Group's system of internal control and for reviewing its adequacy and integrity.The Board recognises that theGroup'ssystemofinternalcontrolisdesignedtomanageandnoteliminatetheriskoffailuretoachievetheGroup'sobjectives.Hence,itcanonlyprovidereasonableandnotabsoluteassuranceagainstmaterialmisstatementofmanagementandfinancialinformationoragainstfinanciallossesandfraud.



E. STATEMENT ON INTERNAL CONTROL (continued)

Key Processes

Thereisanon-goingprocessforidentifying,evaluatingandmanagingthesignificantrisksfacedbytheGroupthroughoutthefinancialyear,andthesaidprocessisreviewedbytheBoardandaccordswiththeStatementonInternalControl:GuidanceforDirectorsofPublicListedCompanies.

The Board has appointed the BARMC comprising independent Directors to examine the effectiveness of the Group's risk management policies,processes and infrastructure which are established to manage various types of risks and to ensure an effective internal audit function. This isaccomplishedthroughthereviewoftheworkoftheGroupRiskManagement&ComplianceDepartmentandtheGroupInternalAuditDepartment,which focuses on areas of priority identified through risk assessment and in accordance with the plans approved by the BARMC.The Group's riskmanagementcomprisescreditriskmanagement,marketriskmanagementandoperationalriskmanagement,andthedepartmentisheadedbytheChief Risk Officer.While business/operating units have the primary responsibility for managing specific risks assumed by them, Risk Managementprovidesthecentralresourcefordevelopingtoolsandmethodologiesfortheidentification,assessment,quantification,aggregation,monitoringandcontroloftheriskstakenbytheGroupasawhole.Additionally,theGroupExecutiveCommittee("EXCO")comprisingmembersofseniormanagementandtheBoardmonitorsrisksbyevaluatingandapprovingloans,proprietaryandstrategicinvestmentsandpolicymattersrelatingtoallcreditmattersoftheGroup.

Incarryingoutitsresponsibilities,theBARMCreliesonthesupportofComplianceDepartmentandInternalAuditDepartmentinprovidingassuranceontheadequacyofinternalcontrols.ComplianceDepartmentprovidesBARMCperiodicreportsonconformancewithrelevantregulatorybodiesandstatutoryrequirements,whilstGroupInternalAuditDepartmentprovidesBARMCwithperiodicreportshighlightingonanynon-complianceaswellasrecommendationsandmanagementactionplanstoimprovethesystemofinternalcontrols.

TheframeworkoftheGroup'ssystemofinternalcontrolandkeyproceduresinclude:

-Amanagementstructureexistswithclearlydefinedlinesofresponsibilityandtheappropriatelevelsofdelegation.

-Keyfunctionssuchasfinance,taxation,treasury,humanresourcesandlegalmattersarecontrolledcentrally.

-Themanagementdeterminestheapplicabilityofriskmonitoringandreportingproceduresandisresponsiblefortheidentificationandevaluation ofsignificantrisksapplicabletotheirareasofbusinesstogetherwiththedesignandoperationofsuitableinternalcontrols.

-CleardefinitionsoflimitsofauthorityandresponsibilitieshavebeenapprovedbytheBoardandsubjecttoregularreviewsandenhancements.

-PoliciesandprocedureswithembeddedinternalcontrolsaredocumentedinaseriesofStandardOperationsManuals,whichwillbesubjectedto annualreviewforupdatingofanychangesinoperationalprocessesorregulatoryrequirements.BusinessandSupportunitsintheGroupmust ensurecompliancewiththepoliciesandprocedures.

-Corporatevalues,whichemphasiseonethicalbehaviourandqualityservices,aresetoutintheGroup'sEmployeeHandbook.

Onayearlybasis,allthebusinessunitswithintheGroupdrawuptheirbusinessplansandbudgetsfortheBoard'sapprovalandtheperformanceistrackedonaquarterlybasiswiththeseniormanagementteamwithdetailedexplanationsofmajorvariances.

AnassociatedcompanyhasnotbeendealtwithaspartoftheGroupforpurposesofapplyingthisguidance.However,astheassociatedcompanyoperateswithinahighlyregulatedbusinessenvironmentandthroughperiodicreportingtotheGroup,theBoardbelievesthattheriskmanagementpracticesofthisassociatedcompanyhavebeeneffectivelycarriedoutbyitsownBoardandmanagement.


directors’ responsibility statement

TheBoardisrequiredbytheListingRequirementsofBursaMalaysiaSecuritiesBerhadtopreparethefinancialstatementsforeachfinancialyearwhichgiveatrueandfairviewofthestateofaffairsoftheGroupandoftheCompanyasattheendofthefinancialyearandoftheresultsandcashflowsfortheyearthenended.TheDirectorsaresatisfiedthatinpreparingthefinancialstatementsoftheGroupforthefinancialyearended31January2008,theGrouphasadopted and applied consistently appropriate accounting policies, supported by reasonable and prudent judgements and estimates.The Directors alsoconsiderthatallapplicableapprovedaccountingstandardsinMalaysiahavebeenfollowedandthefinancialstatementshavebeenpreparedonagoingconcernbasis.

TheDirectorsareresponsibleforensuringthattheCompanymaintainssufficientaccountingrecordsthatdisclosewithreasonableaccuracythefinancialpositionoftheGroupandtheCompany,andwhichenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct,1965.

TheDirectorsalsohavegeneralresponsibilityfortakingsuchstepsthatarereasonablyopentothemtosafeguardtheassetsoftheGroupandtheCompany,andtakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.


chairman’s statement

DearShareholders,

On behalf of the Board of Directors, it is my pleasure to present the Annual Report and audited financial statements for the financial year ended 31January2008.

The Group has undergone a major transformation in the past 12 months, particularly with the granting of an investment bank license to its subsidiary,ECMLibraInvestmentBankBerhadbyBankNegaraMalaysiaandtheSecuritiesCommissiononFebruary6,2008.Tobetterreflectthemorecomprehensiverangeofactivities,thenameoftheholdingcompanywaschangedfromECMLibraAvenueBerhadtoECMLibraFinancialGroupBerhadwitheffectfrom31January2008.

Financial and Business ReviewTheGroupregisteredrecordperformance.Onthebackofa42%improvementinrevenuestoRM205.1millionfromRM144.5millioninthepreviousyear,theGroupregisteredamorethanthree-foldincreaseinnetprofit-fromRM20.2millionthepreviousyeartoRM84.4millionfortheperiodunderreview.

ThehigherrevenuewaslargelyattributedtobetterperformanceoftheGroup'sstockbrokingbusinessgiventhehighertradingvolumeandmarketvaluesonBursaMalaysiaSecuritiesBerhadduringthefirsthalfofyear2007.ThiswascoupledwithrevenuecontributionsfromtheGroup'sequitycapitalmarketandprincipalinvestmentactivities.

Equitymarketsrosesome32%in2007,whiletheMalaysianeconomyregistereda6.3%annualgrowthrate.Thestunningperformancedemonstratedtheresilience,flexibilityandadaptabilityoftheMalaysiancorporateandpublicsectors,whichrosetothechallengedespitetheuncertaintiesintroducedinthelatterhalfof2007bytheU.S.financialandhousingcrisis.

Change in the landscapeWeareinforchallengingtimes.Fearsofaglobaleconomicdownturn,sparkedbythesubprimecrisisintheUnitedStates,arerising.OnthepoliticalfrontinMalaysia,theresultsofthe12thGeneralElectionhavebeendescribedasa"politicaltsunami."Malaysiaisenteringunchartedwatersonboththepoliticalandeconomicfronts.HowweatECMLibranavigatethechoppyseasaheadwilldeterminewhethertheGroupemergesfrom2008notonlyunscathed,butwithevenstrongerresults.

Globalgrowthfor2008hasbeenreviseddownwardsto4.1%from4.8%bytheInternationalMonetaryFund.TheMalaysianeconomyisexpectedtoregisteraslowergrowthof6%fortheyearasweakerconsumerspendingintheUnitedStateswilladverselyaffectournation'smulti-billion-ringgitexportindustry.Private investment will possibly take a back seat this year due to the global economic uncertainties. Public investment is expected to be an importantdrivingforcethisyearinMalaysia,withtheplannedtake-offofanumberofmajorinfrastructureprojects.Politicaluncertainty,followingtheMarch8GeneralElection,however,couldbedevilthesmoothimplementationofsomeoftheseprojects.

Current year prospects

TheattainmentofinvestmentbankstatusplacestheGroupinastrongerpositiontorisetothechallenge.Whilethereisnoroomforcomplacency,Iamconfidentthat themeasureswehaveput inplace,andwhichwewillcontinuetoadjust throughoutthisyear,willhelpusemergestronger fromayearthatmaybefullofunpredictabletwistsandturns.Webelievethatincrisisthereareopportunities,andtheGroup'sinherentstrengthsprovideuswiththeconfidenceandcapabilitytoidentitytheseopportunitiesandturninaperformancethatmaximizesshareholderreturns.


chairman’s statementcontinued

Wehavesetout2objectivesforthisyear:-

To focus on niche markets Withthefinancialservicesindustrybeingmorecompetitive,theGroupwillworktowardsintroducingvaluedinnovativefinancialproductsandservices thatdifferentiateusfromtherest.This,Ibelieve,willestablishtheGroupasaseriousnicheplayerintheinvestmentbankingbusiness.

To achieve greater efficiency TheGroupwillcontinuetoimproveonitsbusinessmodelandoperatingstructuresoastoachievegreateroptimizationofresourcesandtocreateapool ofoperatingsynergies.

Corporate Social ResponsibilityTheGroupstronglybelievesthateducationisthekeytobreakingthepovertycycleinlife.Tothisend,theGroup,inconjunctionwithECMLibraFoundation,setupbythethreefoundingpartnersoftheGroup,haslargelyconcentratedonactivitiesandassistanceinthefieldofeducationfortheunfortunateandthelessprivilegedchildren.Wehavebuilthostels,classrooms,libraries,schoolhalls,audiovisualrooms,computerlabsandcanteensandassistedinrepairing/upgradinginfrastructuresinschoolsalloverthecountry.Recognizingthateducationshouldnotonlyberestrictedtotheconfinesofbricks&mortarbutthatarathermoreholisticapproachtoeducationisnecessary,wehavesponsoredparticipationofstudentsintheperformingarts,vocational/industrialtrainingandinprogrammesforcharacterbuildingbecausewebelievebuildingandnurturingtheleadershipskills,emotionalneedsaswellastheartisticsideofapersonisequallyimportantasisformaleducation.TertiaryeducationhasbecomeexpensiveandmaybebeyondthemeansofmanyyoungMalaysians.TheFoundationassistsinthisareabyprovidingstudentswithinterest-freeandbond-freestudyloanstoenablethemtofurthertheirstudiesinalocalinstitutionofhigherlearningoftheirchoice.

InNovember2007,ECMLibraGroupreceivedHonorableMentionforOutstandingWorkinEducationforthePrimeMinister'sCorporateSocialResponsibilityinauguralaward.Atotalof316entrieswerereceivedfrom161companiesofwhich85entriesviedfortheEducationCategoryAward.ItwasindeedanhonorfortheGrouptoberecognizedforitseffortsandcontributiontothecommunityinthesphereofeducation,beingovertakenonlybythelargestcorporationinthecountry,Petronas,andsharingthestagewithanothergiant,Maxis.

DividendsTheBoardofDirectorshasrecommendedthepaymentofafinalgrossdividendof3%perordinaryshare,whichwillbepartiallypaidoutunderthesingletiertaxsystemandpartiallyafterdeductionofincometaxof26%.TheproposeddividendissubjecttotheapprovalbytheshareholdersattheforthcomingAnnualGeneralMeetingoftheCompanyandispayableinrespectofallordinarysharesinissue.

AppreciationIwouldliketoexpressourheartfeltgratitudetotheapproximately500employeesworkingin13officesnationwidefortheircommitmentandcontributioninsecuringtheinvestmentbankstatusandachievingtheencouragingfinancialresults.Finally,wewouldliketothankourshareholderswhohavebeensupportingandbelievinginusandwhohavecontinuedtohaveconfidenceinus.

Dato’SeriKalimullahbinMasheerulHassanChairman

12March2008


notice of annual general meeting

NOTICE IS HEREBY GIVEN that theThird Annual General Meeting of ECM Libra Financial Group Berhad (formerly known as ECM Libra Avenue Berhad)("Company")willbeheldatAnggerikRoom,4thFloor,HotelEquatorial,JalanSultanIsmail,50250KualaLumpuronThursday,5June2008at10.00a.m.inorder:-

AGENDA

1. toreceivetheauditedfinancialstatementstogetherwiththereportsoftheDirectorsandAuditorsthereonforthefinancialyearended31January2008;

2. to declare a final dividend of 3 sen per share less income tax of 26% for the financial year ended 31 January 2008 to be paid on 30 June 2008 toshareholdersregisteredintheRecordofDepositorson11June2008;

3. toapprovethepaymentofDirectors'feesofRM221,288.00tobedividedamongsttheDirectorsinsuchmannerastheDirectorsmaydetermine;

4. tore-electthefollowingDirectorsretiringpursuanttotheCompany'sArticlesofAssociation:-

i) Dato'SeriKalimullahbinMasheerulHassan; ii) DatukKamarudinbinMdAli;and iii) MrLumSingFai;

5. tore-appointMessrsErnst&YoungasAuditorsoftheCompanyandauthorisetheDirectorstofixtheirremuneration;

AS SPECIAL BUSINESS

Toconsiderandifthoughtfit,passthefollowingordinaryresolutions:-

6. Authority To Directors To Issue Shares

“THATpursuanttoSection132DoftheCompaniesAct,1965,theDirectorsbeandareherebyempoweredtoissuesharesintheCompany,atanytimeanduponsuchtermsandconditionsandforsuchpurposesastheDirectorsmay,intheirabsolutediscretiondeemfit,providedthattheaggregatenumber of shares issued pursuant to this resolution in any one financial year does not exceed 10% of the issued capital of the Company for thetimebeingandtheDirectorsbeandarealsoempoweredtoobtainapprovalforthelistingofandquotationfortheadditionalsharessoissuedonBursaMalaysiaSecuritiesBerhadANDTHATsuchauthorityshallcontinueinforceuntiltheconclusionofthenextAnnualGeneralMeetingoftheCompany";

7. Proposed Renewal Of Authority To Directors For The Purchase Of Own Shares

“THATsubjecttotheCompaniesAct,1965("Act"),rules,regulationsandordersmadepursuanttotheAct,provisionsoftheCompany'sMemorandumandArticlesofAssociationandtheListingRequirementsofBursaMalaysiaSecuritiesBerhad("BursaSecurities")andanyotherrelevantauthority,theDirectorsoftheCompanybeandareherebyauthorisedtomakepurchasesofordinarysharesofRM1.00eachintheCompany'sissuedandpaid-upsharecapitalonBursaSecuritiessubjectfurthertothefollowing:-

(a) themaximumnumberofshareswhichmaybepurchasedand/orheldbytheCompanyshallbeequivalenttotenpercent(10%)oftheissuedand paid-upsharecapitaloftheCompany("Shares")forthetimebeing;

(b) themaximumfundtobeallocatedbytheCompanyforthepurposeofpurchasingtheSharesshallnotexceedtheretainedprofitsand/orthe sharepremiumaccountoftheCompany;and

(c) theauthorityconferredbytheresolutionassetoutinparagraphs(a)and(b)abovewillcommenceuponthepassingofthisresolution,until theconclusionofthenextAnnualGeneralMeetingoftheCompanyortheexpiryoftheperiodwithinwhichthenextAnnualGeneralMeeting isrequiredbylawtobeheldunlessrevokedorvariedbyOrdinaryResolutionoftheshareholdersoftheCompanyingeneralmeetingbutsoas nottoprejudicethecompletionofapurchasemadebeforesuchexpirydate;


notice of annual general meetingcontinued

ANDTHATtheDirectorsoftheCompanybeandareherebyauthorisedtotakeallsuchstepsasarenecessaryorexpedienttoimplementortoeffectthepurchase(s)oftheShares;

ANDtheDirectorsoftheCompanybeandareherebyauthorisedtodealwithanySharessopurchasedandanyexistingtreasuryshares("SaidShares")inthefollowingmanner:-

(a) canceltheSaidShares;

(b)retaintheSaidSharesastreasuryshares;

(c) retainpartoftheSaidSharesastreasurysharesandcanceltheremainder; (d) distributeallorpartoftheSaidSharesasdividendstoshareholdersand/orresellonBursaSecuritiesand/orcancelallorpartofthem;

orinanyothermannerasmaybeprescribedbytheAct,rules,regulationsandordersmadepursuanttotheActandtheListingRequirementsofBursaSecuritiesandanyotherrelevantauthorityforthetimebeinginforceANDTHATtheauthoritytodealwiththeSaidSharesshallcontinuetobevaliduntilalltheSaidShareshavebeendealtwithbytheDirectorsoftheCompany";

8. toconsideranyotherbusinessofwhichduenoticeshallhavebeengiven.

FURTHER NOTICE IS HEREBY GIVENthatadepositorshallqualifyforentitlementtothefinaldividendonlyinrespectof:-(a) sharestransferredintodepositor'ssecuritiesaccountbefore4.00p.m.on11June2008inrespectofordinarytransfers;and(b) sharesboughtonBursaMalaysiaSecuritiesBerhadonacumentitlementbasisaccordingtotheRulesoftheBursaMalaysiaSecuritiesBerhad.

ByOrderoftheBoard

WONGSEONGCHOSecretary

KualaLumpur14May2008

NOTES:

1. Amemberentitledtoattendandvoteattheabovemeetingisentitledtoappointnotmorethantwo(2)proxiestoattendandvoteinhisstead. AproxymaybutneednotbeamemberoftheCompanyandtheprovisionsofSection149(1)(a)and(b)oftheCompaniesAct,1965shallnotapplytotheCompany.Amemberwhoisanauthorizednomineemayappointatleastone(1)proxyinrespectofeachsecuritiesaccountitholds.

2. TheFormofProxymustbedepositedattheRegisteredOfficeoftheCompanyat8AFloor,WismaGenting,JalanSultanIsmail,50250KualaLumpurnotlessthan48hoursbeforethetimeanddateofthemeetingoradjournedmeeting.

Explanatory note on special business

1. OrdinaryResolutiononauthoritytoDirectorstoissueshares

Theordinaryresolution,ifpassed,willgiveauthoritytotheDirectorsoftheCompanytoissuesharesoftheCompanyforsuchpurposesastheDirectorsconsiderwouldbeintheinterestoftheCompany.Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireattheconclusionofthenextAnnualGeneralMeetingoftheCompany.

2. OrdinaryResolutiononProposedRenewalofShareBuy-BackAuthority

The ordinary resolution, if passed, will give authority to the Directors of the Company to make purchases of shares in the Company through BursaSecuritiesuptotenpercentoftheissuedandpaid-upsharecapitaloftheCompany.Thisauthority,unlessrevokedorvariedatageneralmeeting,willexpireattheconclusionofthenextAnnualGeneralMeetingoftheCompany.


statement accompanyingnotice of annual general meeting(PursuanttoParagraph8.28(2)oftheListingRequirementsoftheBursaMalaysiaSecuritiesBerhad)

1. Directors who are standing for re-election at the Third Annual General Meeting of the Company pursuant to the Company's Articles of Association

PursuanttoArticle103oftheCompany'sArticlesofAssociation

Dato'SeriKalimullahbinMasheerulHassan DatukKamarudinbinMdAli

PursuanttoArticle110oftheCompany'sArticlesofAssociation MrLumSingFai

2. Details of attendance of Directors at Board Meetings

Therewereseven(7)BoardMeetingsheldduringthefinancialyearended31January2008.DetailsofattendanceoftheDirectorsaresetout intheDirectors'Profileappearingonpages4to7andCorporateGovernanceStatementonpage10oftheAnnualReport.

3. Place, Date and Time of Third Annual General Meeting

TheThirdAnnualGeneralMeetingoftheCompanywillbeheldatAnggerikRoom,4thFloor,HotelEquatorial,JalanSultanIsmail,50250KualaLumpuronThursday,5June2008at10.00a.m.

4. Further details of individuals who are standing for re-election as Directors

(i) Directors'profileonpages4to7.

(ii) DetailsofinterestinthesecuritiesoftheCompany,ifany,aredisclosedinDirectors'Interestsonpage23.


financialstatements


directors’ report

ThedirectorshavepleasureinpresentingtheirreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyforthefinancialyearended31January2008.

Change Of NameThenameoftheCompanywaschangedfromECMLibraAvenueBerhadtoECMLibraFinancialGroupBerhad("ECMLFG"or"Company")witheffectfrom31January2008.

Principal ActivitiesTheprincipalactivitiesoftheCompanyareinvestmentholdingandprovisionofmanagementservices.TheprincipalactivitiesofthesubsidiarycompaniesaresetoutinNote14tothefinancialstatements.

Therehavebeennosignificantchangesinthenatureoftheprincipalactivitiesduringthefinancialyear.

Significant EventsSignificanteventsaredisclosedinNote37tothefinancialstatements.

Results Group Company RM ‘000 RM ‘000

Netprofitfortheyear 84,387 49,585

Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearotherthanasdisclosedinthefinancialstatements.

DividendsAfinaldividendinrespectofthefinancialyearended31January2007of1senless27%taxon830,901,953ordinaryshares,amountingtoRM6,066,000waspaidon13July2007.

At the forthcomingAnnualGeneralMeeting,a finaldividendof3senperordinaryshareofRM1eachon830,901,953ordinaryshares, in respectof thefinancialyearended31January2008,amountingtoanetdividendpayableofapproximatelyRM20,004,000willbeproposedforshareholders'approval.As at 31 January 2008, the Company has sufficient credit in the section 108 balance to pay franked dividends up to RM14,011,000 and the balance ofRM5,993,000willbedistributedunderthesingletiersystem.Thefinancialstatementsforthecurrentfinancialyeardonotreflectthisproposeddividend.Suchdividend, ifapprovedbytheshareholders,willbeaccountedfor inequityasanappropriationof retainedearnings inthe financialyearending31January2009.


directors’ reportcontinued

DirectorsThedirectorsoftheCompanyinofficesincethedateofthelastreportandatthedateofthisreportare:

Dato’SeriKalimullahbinMasheerulHassan Dato’AbHalimbinMohyiddin MrLimKianOnn DatukKamarudinbinMdAli Dato’OthmanbinAbdullah EnMahadzirbinAzizan MrSooKimWai(resignedon6February2008) MrLumSingFai(resignedasalternatedirectortoMrSooKimWaion6February2008andre-appointedasdirectoronthesameday) PnEshahbintiMeorSulaiman(resignedon1March2007) EnIbrahimMahaludinbinPuteh(resignedon1March2007)

InaccordancewithArticle103oftheArticlesofAssociationoftheCompany,Dato’SeriKalimullahbinMasheerulHassanandDatukKamarudinbinMdAliwillretireattheforthcomingAnnualGeneralMeetingand,beingeligible,offerthemselvesforre-election.

InaccordancewithArticle110oftheArticlesofAssociationoftheCompany,MrLumSingFaiwillretireattheforthcomingAnnualGeneralMeetingand,beingeligible,offershimselfforre-election.

Directors’ InterestsTheDirectorsholdingofficeattheendofthefinancialyearwhohadbeneficial interests intheordinaryshares/options*oftheCompanyand/orrelatedcorporationsduringthefinancialyearended31January2008,asrecordedintheRegisterofDirectors’ShareholdingskeptbytheCompanyunderSection134oftheCompaniesAct,1965,areasfollows: Shareholdings in which Directors have interests Number of ordinary shares / options *

As at As at 1.2.2007 Acquired Sold 31.1.2008

Direct interest in ECM Libra Financial Group Berhad ("ECMLFG")

Dato’SeriKalimullahbinMasheerulHassan 40,000,000 - 40,000,000 - - 29,000,000* - 29,000,000*Dato’AbHalimbinMohyiddin - 200,000* - 200,000*MrLimKianOnn 92,706,000 - 16,250,000 76,456,000 - 29,000,000* - 29,000,000*DatukKamarudinbinMdAli - 200,000* - 200,000* EnMahadzirbinAzizan - 200,000* - 200,000* Dato’OthmanbinAbdullah - 200,000* - 200,000*

Indirect Interest in ECMLFG

Dato’SeriKalimullahbinMasheerulHassan - 40,000,000 5,000,000 35,000,000MrLimKianOnn 7,000,000 - 7,000,000 -

*TheoptionsoverordinarysharesweregrantedpursuanttotheCompany'sEmployeesShareOptionScheme("ESOS").



Directors’ BenefitsSincetheendofthepreviousfinancialyear,noneofthedirectorsoftheCompanyhasreceivedorbecomeentitledtoreceiveabenefit(otherthanabenefitincludedintheaggregateamountofemolumentsreceivedordueandreceivablebythedirectorsshowninthefinancialstatementsorthefixedsalaryofafulltimeemployeeoftheCompanyorofarelatedcompany)byreasonofacontractmadebytheCompanyorarelatedcorporationwiththedirectororwithafirmofwhichthedirectorisamember,orwithacompanyinwhichthedirectorhasasubstantialfinancialinterestexceptforMrLimKianOnnwhomaybedeemedtoderiveabenefitbyvirtueofthosetransactions,contractsandagreementsfortheacquisitionand/ordisposalofstocksandsharesand/ortheprovisionofservicesincludingbutnotlimitedtomanagementandconsultancyservices,tenanciesand/ortheprovisionoftreasuryfunctionsandtheconductofnormalstockbrokingbusinessbetweentheCompanyanditsrelatedcorporationsorcorporationsinwhichMrLimKianOnnisdeemedtohaveinterests.

TherewerenoarrangementsduringandattheendofthefinancialyearwhichhadtheobjectofenablingthedirectorsoftheCompanytoacquirebenefitsbymeansoftheacquisitionofsharesin,ordebenturesoftheCompanyoranyotherbodycorporateotherthantheshareoptionsgrantedpursuanttotheEmployeesShareOptionScheme.

Employees Share Option SchemeTheCompany’sEmployeesShareOptionScheme(“ESOS”)isgovernedbytheby-lawsapprovedbytheshareholdersatanExtraordinaryGeneralMeetingheldon1December2005.TheESOSwasimplementedon4January2008andwillbeinforceforaperiodoften(10)years.

TheCompanyhasbeengrantedexemptionbytheCompaniesCommissionofMalaysiafromhavingtodisclosethenamesofoptionholdersgrantedlessthan2,000,000optionseachduringtheyearpursuanttothescheme.Thenamesofoptionholders,otherthandirectors,whohadbeengrantedoptionsof2,000,000ormoreasattheendofthefinancialyearareasfollows: No.ofoptions '000 T.Jeyaratnam 2,000 FranklinTanKokPin 2,000 NgHoeGuan 2,000 WongSeongCho 2,000

ThenamesofdirectorswhohadbeengrantedoptionsaredisclosedinthesectionofDirectors'Interestinthisreport.

ThemainfeaturesoftheESOSare,interalia,asfollows:-

(i) Eligibleemployeesarethoseemployeesof theGroupwhohadbeen inservice forat leastoneyearonthedateofoffer.Themaximumallowable allotmentsforthedirectorshadbeenapprovedbytheshareholdersoftheCompanyinageneralmeeting.TheBoardofDirectorsmayfromtimeto timeatitsdiscretionselectandidentifysuitableeligibleemployeestobeofferedoptions.

(ii) The aggregate number of shares to be issued under the ESOS shall not exceed 15% of the total issued and paid-up ordinary share capital of the Companyforthetimebeing.

(iii) TheESOSshallbeinforceforaperiodof10yearsfrom4January2008.

(iv) Theoptionpriceshallnotbeatadiscountofmorethantenpercent(10%)(orsuchdiscountastherelevantauthoritiesshallpermit)fromthe5-day weightedaveragemarketpriceofthesharesoftheCompanyprecedingthedateofofferandshallinnoeventbelessthantheparvalueoftheshares oftheCompanyofRM1.00.

(v) Anoptionholdermay,inaparticularyear,exerciseuptosuchmaximumnumberofsharesintheoptioncertificateasdeterminedbytheBoardof Directorsorasspecifiedintheoptioncertificate.

Asat31January2008,therewerenoissuanceofnewsharesastherewerenoexerciseoftheESOSoptionsgranted.



Other Statutory Information

(I) As at the end of the financial year

(a) BeforetheincomestatementsandbalancesheetsoftheGroupandtheCompanyweremadeout,thedirectorstookreasonablesteps:

(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and financing and the making of provision fordoubtfuldebtsandfinancingandhadsatisfiedthemselvesthatallknownbaddebtsandfinancinghadbeenwrittenoffandthatadequateprovisionhadbeenmadefordoubtfuldebtsandfinancing;and

(ii) toensurethatanycurrentassets,otherthandebtsandfinancing,whichwereunlikelytorealisetheirbookvaluesasshownintheaccountingrecordsintheordinarycourseofbusinesshadbeenwrittendowntotheirestimatedrealisablevalues.

(b) Intheopinionofdirectors,theresultoftheoperationsoftheGroupandofCompanyduringthefinancialyearwerenotsubstantiallyaffectedby anyitem,transactionoreventofamaterialandunusualnature.

(II) From the end of the financial year to the date of this report

(a) Thedirectorsarenotawareofanycircumstances:

(i) whichwouldrendertheamountwrittenoff forbaddebtsandfinancingortheamountof theprovisionfordoubtfuldebtsandfinancinginadequatetoanymaterialextent;

(ii) whichwouldrenderthevaluesattributedtocurrentassetsinthefinancialstatementsmisleading;and

(iii) whichhadarisenwhichwouldrenderadherencetotheexistingmethodofvaluationofassetsorliabilitiesoftheGroupandtheCompanymisleadingorinappropriate.

(b) Intheopinionofthedirectors:

(i) theresultsoftheoperationsoftheGroupandtheCompanyforthefinancialyearended31January2008arenotlikelytobesubstantiallyaffectedbyanyitem,transactionoreventofamaterialandunusualnaturewhichhadarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreport;and

(ii) nocontingentorotherliabilityhasbecomeenforceable,orislikelytobecomeenforceable,withintheperiodoftwelvemonthsaftertheendofthefinancialyearwhichwillormayaffecttheabilityoftheGroupandtheCompanytomeettheirobligationsasandwhentheyfalldue.

(III) As at the date of this report

(a) TherearenochargesontheassetsoftheGroupandtheCompanywhichhadarisensincetheendofthefinancialyeartosecuretheliabilitiesofanyotherperson.

(b) Therearenocontingentliabilitieswhichhadarisensincetheendofthefinancialyear.

(c) Thedirectorsarenotawareofanycircumstancesnototherwisedealtwithinthereportorfinancialstatementswhichwouldrenderanyamountstatedinthefinancialstatementsmisleading.



AuditorsTheauditors,Ernst&Young,haveexpressedtheirwillingnesstocontinueinoffice.

SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectorsdated12March2008.

Dato’SeriKalimullahbinMasheerulHassan LimKianOnn


statutory declaration(PursuanttoSection169(16)oftheCompaniesAct,1965)

I,LauYewSun,beingtheofficerprimarilyresponsibleforthefinancialmanagementofECMLibraFinancialGroupBerhad(formerlyknownasECMLibraAvenueBerhad),dosolemnlyandsincerelydeclarethattheaccompanyingfinancialstatementssetoutonpage29to82areinmyopinioncorrect,andImakethissolemndeclarationconscientiouslybelievingthesametobetrueandbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

Subscribedandsolemnlydeclaredby theabovenamedLauYewSunat KualaLumpurintheFederalTerritory on12March2008 LauYewSun

Beforeme,

SohAhKau CommissionerforOaths 12March2008

statement by directors(PursuanttoSection169(15)oftheCompaniesAct,1965)

We,Dato’SeriKalimullahbinMasheerulHassanandLimKianOnn,beingtwoofthedirectorsofECMLibraFinancialGroupBerhad(formerlyknownasECMLibraAvenueBerhad),doherebystatethat,intheopinionofthedirectors,theaccompanyingfinancialstatementssetoutonpages29to82aredrawnupinaccordancewiththeprovisionsoftheCompaniesAct,1965andapplicableFinancialReportingStandardsinMalaysiasoastogiveatrueandfairviewofthefinancialpositionoftheGroupandoftheCompanyasat31January2008andofitsresultsanditscashflowsfortheyearthenended.

SignedonbehalfoftheBoardinaccordancewitharesolutionofthedirectorsdated12March2008.

Dato’SeriKalimullahbinMasheerulHassan LimKianOnn


auditors’ report

REPORT OF THE AUDITORS TO THE MEMBERS OF ECM LIBRA FINANCIAL GROUP BERHAD(formerlyknownasECMLibraAvenueBerhad)(IncorporatedinMalaysia)

Wehaveauditedthefinancialstatementssetoutonpages29to82.ThesefinancialstatementsaretheresponsibilityoftheCompany'sdirectors.

It isour responsibility to forman independentopinion,basedonouraudit,on the financial statementsandto reportouropiniontoyou,asabody, inaccordancewithSection174oftheCompaniesAct,1965andfornootherpurpose.Wedonotassumeresponsibilitytoanyotherpersonforthecontentofthisreport.

Weconductedouraudit inaccordancewithapplicableApprovedStandardsonAuditing inMalaysia.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebythedirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethatourauditprovidesareasonablebasisforouropinion.

Inouropinion:

(a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable FinancialReportingStandardsinMalaysiasoastogiveatrueandfairviewof:

(i) the financialpositionof theGroupandof theCompanyasat31January2008andof the resultsandthecash flowsof theGroupandof theCompanyfortheyearthenended;and

(ii) themattersrequiredbySection169oftheCompaniesAct,1965tobedealtwithinthefinancialstatements;and

(b) theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyandbyitssubsidiariesofwhichwehaveactedasauditorshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

Wehaveconsideredthefinancialstatementsandtheauditors'reportsthereonofthesubsidiariesofwhichwehavenotactedasauditors,asindicatedinNote14tothefinancialstatements,beingfinancialstatementsthathavebeenincludedintheconsolidatedfinancialstatements.

WearesatisfiedthatthefinancialstatementsofthesubsidiariesthathavebeenconsolidatedwiththefinancialstatementsoftheCompanyareinformandcontentappropriateandproperforthepurposesofthepreparationoftheconsolidatedfinancialstatementsandwehavereceivedsatisfactoryinformationandexplanationsrequiredbyusforthosepurposes.

Theauditors’reportsonthefinancialstatementsofthesubsidiarieswerenotsubjecttoanyqualificationmaterialtotheconsolidatedfinancialstatementsanddidnotincludeanycommentrequiredtobemadeunderSection174(3)oftheAct.

Ernst&Young GloriaGohEweGimAF:0039 No.1685/04/09(J)CharteredAccountants Partner

KualaLumpur,Malaysia 12March2008


income statementsfortheyearended31Jan2008

Group Company

Note 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Revenue 3 205,052 144,512 59,447 9,685

Directcosts (44,990) (29,747) (100) -

Netrevenue 160,062 114,765 59,347 9,685

Otheroperatingincome 7,140 5,416 - -

Administrativeexpenses (12,506) (8,241) (1,020) (423)

Otheroperatingexpenses (80,936) (62,948) (4,641) (237)

Operatingprofit 4 73,760 48,992 53,686 9,025

(Loss)/gainondisposalofinvestments 5 (1,184) 2,747 499 -

Writebackof/(allowancefor)impairmentlossoninvestments 6 9,211 (18,642) - -

Rationalisationexpenses 7 - (17,369) - -

Shareofprofitsofassociatedcompanies 3,255 6,074 - -

Financecosts 8 (2,399) (3,450) (38) -

Profit before taxation 82,643 18,352 54,147 9,025

Incometaxexpense 9 1,744 1,806 (4,562) (2,713)

Net profit for the year 84,387 20,158 49,585 6,312

Earnings per ordinary share (sen) 10 - Basic / fully diluted 10.16 2.59

Theaccompanyingnotesformanintegralpartofthefinancialstatements.


balance sheetsasat31Jan2008

Group Company

Note 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

ASSETS

Non-current Assets

Property,plantandequipment 11 54,509 57,988 41,227 -

Investmentproperties 12 - 1,020 - -

Intangibleassets 13 284,500 232,000 - -

Investmentinsubsidiarycompanies 14 - - 887,922 777,992

Investmentinassociatedcompanies 15 43,280 46,389 - 3,918

Otherinvestments 16 12,304 14,019 - -

Deferredtaxassets 17 10,000 5,000 - -

404,593 356,416 929,149 781,910

Current Assets

Inventories 18 89 1,016 - -

Marketablesecurities 19 164,095 207,670 - -

Tradereceivables 20 550,845 1,027,865 - -

Loanreceivables 21 25,352 15,284 - -

Otherreceivables,depositandprepayments 22 19,423 32,632 304 19

Amountowingbysubsidiarycompanies 23 - - 60,070 125,090

Depositswithlicensedfinancialinstitutions 24 150,432 107,223 - 10,720

Cashandbankbalances 25 219,840 172,747 25 123

1,130,076 1,564,437 60,399 135,952

TOTAL ASSETS 1,534,669 1,920,853 989,548 917,862



balance sheetscontinuedasat31Jan2008

Group Company

Note 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

EQUITY AND LIABILITIES

Equity attributable to equity holders of the Company

Sharecapital 26 830,902 830,902 830,902 830,902

Reserves 27 106,121 30,396 51,324 6,310

Totalequity 937,023 861,298 882,226 837,212

Non-Current Liabilities

Hirepurchasepayable 444 - 444 -

Deferredtaxliabilities 17 168 433 - -

612 433 444 -

Current Liabilities

Tradepayables 28 521,290 872,907 - -

Otherpayablesandaccruedexpenses 29 74,754 84,697 4,036 962

Amountowingtosubsidiarycompanies 23 - - 102,799 79,308

Shorttermborrowings 30 - 100,000 - -

Taxliabilities 990 1,518 43 380

597,034 1,059,122 106,878 80,650

Totalliabilities 597,646 1,059,555 107,322 80,650

TOTAL EQUITY AND LIABILITIES 1,534,669 1,920,853 989,548 917,862



statements of changes in equityfortheyearended31Jan2008

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

Foreign Currency Equity Share Merger Translation Compensation General RetainedGroup Capital Reserve Reserve Reserve Reserve Profit Total Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At1February2007 830,902 26,561 (2,047) - 159 5,723 861,298

Foreigncurrencytranslation - - (4,671) - - - (4,671)

Arisingfromshareoptiongrantedduringtheyear 26 - - - 2,075 - - 2,075

Netprofitfortheyear - - - - - 84,387 84,387

Dividendspaid 32 - - - - - (6,066) (6,066)

At 31 January 2008 830,902 26,561 (6,718) 2,075 159 84,044 937,023

<------------ Non-Distributable -------------> <---------------- Distributable -----------------> Foreign Retained

Currency Profit/ Share Share Merger Translation Capital General (AccumulatedGroup Capital Premium Reserve Reserve Reserve Reserve Loss) Total Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At1February2006 703,027 152,022 49,551 - 1,000 159 (184,705) 721,054

Sharecapitalreductionpursuantto adistributionofassets-in-specie (314,125) - - - - - - (314,125)

Capitalcancellationexercise undertakenbyAvenueCapital ResourcesBerhad("ACRB") - (152,022) (102,000) - - - 254,022 -

Disposalofsubsidiaries - - 79,010 - (1,000) - (78,140) (130)

Foreigncurrencytranslation - - - (2,047) - - - (2,047)

Sharesissuedpursuanttothe acquisitionofsubsidiaries 442,000 - - - - - - 442,000

Netprofitfortheyear - - - - - - 20,158 20,158

Dividendspaid 32 - - - - - - (5,612) (5,612)

At 31 January 2007 830,902 - 26,561 (2,047) - 159 5,723 861,298



statements of changes in equitycontinuedfortheyearended31Jan2008

Non- Distributable Equity Distributable Share Compensation RetainedCompany Capital Reserve Profit Total Note RM’000 RM’000 RM’000 RM’000 At1February2007 830,902 - 6,310 837,212

Arisingfromshareoptionsgrantedduringtheyear 26 - 1,495 - 1,495

Netprofitfortheyear - - 49,585 49,585

Dividendspaid 32 - - (6,066) (6,066)

At 31 January 2008 830,902 1,495 49,829 882,226

Company

At1February2006 * - - *

SharesissuedtoshareholdersofACRBpursuanttotheACRBreorganisationexercise 849,128 - (2) 849,126

CapitalcancelledpursuanttoACRBreorganisationexercise (146,101) - - (146,101)

Sharecapitalreductionpursuanttoadistributionofassets-in-specie (314,125) - - (314,125)

Sharesissuedpursuanttotheacquisitionofsubsidiaries 442,000 - - 442,000

Netprofitfortheyear - - 6,312 6,312

At 31 January 2007 830,902 - 6,310 837,212

*RepresentsRM2.00.



cash flow statementfortheyearended31Jan2008

Group Company

2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

CASH FLOW FROM OPERATING ACTIVITIESProfitbeforetaxation 82,643 18,352 54,147 9,025

Adjustmentsfor:

(Writebackof )/allowanceforimpairmentlossoninvestments (9,211) 18,642 - -

Depreciationofproperty,plantandequipment 6,214 6,330 372 -

Depreciationofinvestmentproperties 12 21 - -

Exchangetranslationgain (1,610) (1,168) - -

Financecost 2,399 3,450 38 -

Property,plantandequipmentwrittenoff 318 5,637 - -

Shareofresultsofassociatedcompanies (3,255) (6,074) - -

Gain/(loss)ondisposalof:

-marketablesecurities (21,861) (13,780) - -

-investments 1,184 (2,747) (499) -

Dividendincome (612) (1,167) (57,244) (8,333)

CostarisingfromEmployeesShareOptionScheme("ESOS") 2,075 - 1,495 -

Allowancefordoubtfuldebts 540 1,818 - -

Lossondisposalofproperty,plantandequipment 178 97 - -

Operatingprofit/(loss)beforeworkingcapitalchanges 59,014 29,411 (1,691) 692

(Increase)/decreasein:

Inventories 927 326 - -

Marketablesecurities 71,847 (104,475) - -

Tradeandotherreceivables,depositsandprepayments 468,715 (641,347) (105) (18)

Depositsandmoneyheldintrust/pledged (108,661) (15,130) - -

(Decrease)/increasein:

Tradeandotherpayables,andaccruedexpenses (361,560) 590,204 3,518 4,558

Balancecarriedforward 130,282 (141,011) 1,722 5,232



cash flow statement continuedfortheyearended31Jan2008

Group Company

2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

CASH FLOW FROM OPERATING ACTIVITIES (continued)Balancebroughtforward 130,282 (141,011) 1,722 5,232

Amountowingby/tosubsidiarycompanies - - 88,511 (389)

Cashgeneratedfrom/(usedin)operations 130,282 (141,011) 90,233 4,843

Taxrecovered 1,468 - - -

Taxpaid (4,166) (2,087) (464) -

Netcashgeneratedfrom/(usedin)operatingactivities 127,584 (143,098) 89,769 4,843

CASH FLOWS FROM INVESTING ACTIVITIES

Dividendreceived 612 1,009 52,629 6,000

Purchaseofproperty,plantandequipment (3,633) (3,766) (41,599) -

PaymenttoBankNegaraMalaysiaformerchantbanklicence (42,500) (10,000) - -

Netcashinflowfromacquisitionofsubsidiarycompanies - 103,263 - -

Capitalinjectiontoasubsidiarycompany - - (109,930) -

Proceedsfromdisposalof: -subsidiarycompany - (255) - -

-associatedcompany 4,417 71,424 4,417 -

-otherinvestments 1,901 - - -

-property,plantandequipment 402 1,871 - -

-investmentproperty 1,497 - - -

Netcash(usedin)/generatedfrominvestingactivities (37,304) 163,546 (94,483) 6,000



Group Company

2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM FINANCING ACTIVITIES Shorttermborrowings(repaid)/drawndown (100,000) 10,000 - -

Dividendspaid (6,066) (5,612) (6,066) -

Interestpaid (2,399) (3,450) (38) -

Netcash(usedin)/generatedfromfinancingactivities (108,465) 938 (6,104) -

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (18,185) 21,386 (10,818) 10,843

EFFECTS OF FOREIGN EXCHANGE DIFFERENCES (174) 500 - -

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 167,473 145,587 10,843 -

CASH AND CASH EQUIVALENTS AT END OF YEAR (Note 31) 149,114 167,473 25 10,843

cash flow statement continuedfortheyearended31Jan2008



notes to the financial statements

1. CORPORATE INFORMATION TheCompanyisapubliclimitedcompanyincorporatedinMalaysiaandlistedontheMainBoardofBursaMalaysiaSecuritiesBerhad("BursaMalaysia").

TheprincipalplaceofbusinessoftheCompanyislocatedat8AFloor,WismaGenting,JalanSultanIsmail,50250KualaLumpur.

The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiarycompaniesaresetoutinNote14.

Therehavebeennosignificantchangesinthenatureoftheprincipalactivitiesduringthefinancialyear.

ThefinancialstatementswereauthorisedforissuebytheBoardofDirectorsinaccordancewitharesolutionofthedirectorsdated12March2008.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

ThefinancialstatementsoftheGroupandoftheCompanyhavebeenpreparedonahistoricalcostbasisandcomplywiththeprovisionsoftheCompaniesAct,1965andapplicableFinancialReportingStandards("FRSs")inMalaysia.

TheaccountingpoliciesadoptedareconsistentwiththoseofthepreviousyearexceptthattheGrouphasadoptedthoseFRSsandamendmentstoFRSsissuedbyMalaysianAccountingStandardsBoard("MASB")thatareeffectiveforfinancialperiodbeginningonorafter1October2006asdescribedinNote2(b)(i).

ECMLibraInvestmentBankBerhad(formerlyknownasECMLibraAvenueSecuritiesBerhad)("ECMLIB")hadreceivedapprovalfromBankNegaraMalaysia("BNM")tocomplywiththerequirementsoftheRevisedGuidelinesonFinancialReportingforLicensedInstitutions("BNM/GP8")notlaterthanoneyearfromthedateofinceptionofitsinvestmentbankstatus.TheGroupandECMLIBhasnotadoptedtherequirementsofBNM/GP8forthecurrentfinancialyearended31January2008.

(b) Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs

(i) On1February2007,theGroupandtheCompanyadoptedFRS117-LeasesandFRS124-RelatedPartyTransactionswhicharemandatoryfor financialperiodsbeginningonorafter1October2006.

TheadoptionofFRS117didnotresultinanysignificantchangesinaccountingpoliciesoftheGroup.

TheeffectsofthechangesinaccountingpoliciesresultingfromtheadoptionofFRS124areasfollows:

(i) Removal of the exemption for the disclosure of related party transactions in the Company's financial statements in respect of transactionswithsubsidiaries.

(ii) Disclosureofthecompensationofkeymanagementpersonnel,asshowninNote34(b).

The MASBhasalso issued the following FRSsandAmendment toFRSswhichwillbeeffective forannualperiodsbeginningonorafter 1 January2007.TheseFRSsandAmendmentsare,however,notapplicabletotheGrouportheCompany.

FRS6:ExplorationforandEvaluationofMineralResources

AmendmenttoFRS1192004:EmployeeBenefits-ActuarialGainsandLosses,GroupPlansandDisclosures


notes to the financial statementscontinued

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

(b) Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (continued)

(ii) Standards and Interpretations Issued but Not Yet Effective

Atthedateofauthorisationofthesefinancialstatements,thefollowingnewandrevisedFRSs,AmendmenttoFRSsandInterpretationswere issuedbutnotyeteffectiveandhavenotbeenappliedbytheGroupandtheCompany:

Effective for financial periods beginning FRSs, Amendment to FRSs and Interpretations on or after

FRS107:CashFlowStatements 1July2007

FRS111:ConstructionContracts 1July2007

FRS112:IncomeTaxes 1July2007

FRS118:Revenue 1July2007

FRS120:AccountingforGovernmentGrantsandDisclosureofGovernmentAssistance 1July2007

FRS126:AccountingandReportingbyRetirementBenefitPlans 1July2007

FRS129:FinancialReportinginHyperinflationaryEconomies 1July2007

FRS134:InterimFinancialReporting 1July2007

FRS137:Provision,ContingentLiabilitiesandContingentAssets 1July2007

AmendmenttoFRS121:TheEffectsofChangesinForeignExchangeRates–NetInvestmentinaForeignOperation 1July2007

ICInterpretation1:ChangesinExistingDecommissioning,RestorationandSimilarLiabilities 1July2007

ICInterpretation2:Members’SharesinCo-operativeEntitiesandSimilarInstruments 1July2007

ICInterpretation5:RightstoInterestsarisingfromDecommissioning,RestorationandEnvironmental RehabilitationFunds 1July2007

ICInterpretation6:LiabilitiesarisingfromParticipatinginaSpecificMarket–WasteElectricaland ElectronicEquipment 1July2007

ICInterpretation7:ApplyingtheRestatementApproachunderFRS1292004–FinancialReportin HyperinflationaryEconomies 1July2007

ICInterpretation8:ScopeofFRS2 1July2007

FRS139:FinancialInstruments:RecognitionandMeasurement Deferred

TheabovenewandrevisedFRSs,AmendmenttoFRSsandInterpretationswiththeexceptionofFRS139areexpectedtohavenosignificant impactonthefinancialstatementsoftheGroupandtheCompanyupontheirinitialapplication.TheGroupandtheCompanyareexempted fromdisclosingthepossibleimpact,ifany,tothefinancialstatementsupontheinitialapplicationofFRS139.




(c) BNM 'Garisan Panduan' 8 ("BNM/GP8") not yet adopted

TheGrouphasnotyetadoptedBNM/GP8forthecurrentfinancialyear,asapprovedbyBNM.TheadoptionofBNM/GPinthefinancialyearending 31January2009willresultinthereclassificationofmarketablesecuritiestosecuritiesheld-for-trading/available-for-sale/held-to-maturity.

(d) Subsidiaries and Basis of Consolidation

(i) Subsidiaries

SubsidiariesareentitiesoverwhichtheGrouphas theability tocontrol the financialandoperatingpoliciessoas toobtainbenefits fromtheiractivities.TheexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleareconsideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

IntheCompany’sseparatefinancialstatements,investmentsinsubsidiariesarestatedatcostlessimpairmentlosses,ifany.Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.

(ii) Basis of Consolidation

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyanditssubsidiariesasatthebalancesheetdate.ThefinancialstatementsofthesubsidiariesarepreparedforthesamereportingdateastheCompany.

Subsidiariesareconsolidatedfromthedateofacquisition,beingthedateonwhichtheGroupobtainscontrol,andcontinuetobeconsolidateduntilthedatethatsuchcontrolceases.Inpreparingtheconsolidatedfinancialstatements,intragroupbalances,transactionsandunrealisedgainsorlossesareeliminatedinfull.Uniformaccountingpoliciesareadoptedintheconsolidatedfinancialstatementsforliketransactionsandeventsinsimilarcircumstances.

Purchase method of consolidation

Acquisitions of subsidiaries are generally accounted for using the purchase method unless they qualify under the merger principles ofaccountingasexplainedbelow.Thepurchasemethodofaccounting involvesallocatingthecostoftheacquisitiontothefairvalueoftheassets acquired and liabilities and contingent liabilities assumed at the date of acquisition.The cost of an acquisition is measured as theaggregateofthefairvalues,atthedateofexchange,oftheassetsgiven,liabilitiesincurredorassumed,andequityinstrumentsissued,plusanycostsdirectlyattributabletotheacquisition.

Anyexcessof thecostof theacquisitionover theGroup’s interest in thenet fairvalueof the identifiableassets, liabilitiesandcontingentliabilities represents goodwill. Any excess of the Group’s interest in the net fair value of the identifiable assets, liabilities and contingentliabilitiesoverthecostofacquisitionisrecognisedimmediatelyinprofitorloss.

Merger principles of accounting

Businesscombinationsinvolvingentitiesundercommoncontrolareaccountedforusingmergerprinciplesofaccounting.Whenthemergerprinciplesofaccountingisadopted,thedifferencebetweenthecostofinvestmentintheCompany'srecordsandtheshareholders'equityofthesubsidiariesistreatedasamergerreserveoramergerdeficit.Theresultsofthesubsidiarycompaniesbeingmergedarepresentedasifthemergerhadbeeneffectedthroughoutthecurrentandpreviousfinancialyears.




(d) Subsidiaries and Basis of Consolidation (continued)

(ii) Merger principles of accounting (continued)

ThemergerprinciplesofaccountingwasadoptedbytheGroupinrespectoftheacquisitionofAvenueCapitalResourcesBerhad("ACRB")anditssubsidiariespursuanttotheACRBreorganisationexerciseinthepreviousfinancialyear.Assuch,theresultsoftheGrouphavebeenstatedasiftheACRBGrouphavebeencombinedwiththeCompanythroughoutthecurrentandpreviousaccountingperiodseventhoughtheCompanywasonlyincorporatedon24October2005.ThecomparativefiguresoftheGrouprelatetothatoftheACRBGroupandadjustedfortheeffectsarisingfromusingthemergerprinciplesofaccounting.

(e) Associates Associates are entities in which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.

Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutnotincontrolorjointcontroloverthosepolicies.

Investmentsinassociatesareaccountedforintheconsolidatedfinancialstatementsusingtheequitymethodofaccounting.Undertheequitymethod,theinvestmentinassociateiscarriedintheconsolidatedbalancesheetatcostadjustedforpost-acquisitionchangesintheGroup’sshareofnetassetsoftheassociate.TheGroup’sshareofthenetprofitorlossoftheassociateisrecognisedintheconsolidatedprofitorloss.Wheretherehasbeenachangerecogniseddirectlyintheequityoftheassociate,theGrouprecognisesitsshareofsuchchanges.Inapplyingtheequitymethod,unrealisedgainsandlossesontransactionsbetweentheGroupandtheassociateareeliminatedtotheextentoftheGroup’s interestintheassociate.Afterapplicationoftheequitymethod,theGroupdetermineswhetherit isnecessarytorecogniseanyadditionalimpairmentlosswithrespecttotheGroup’snetinvestmentintheassociate.TheassociateisequityaccountedforfromthedatetheGroupobtainssignificantinfluenceuntilthedatetheGroupceasestohavesignificantinfluenceovertheassociate.

WhentheGroup’sshareoflossesinanassociateequalsorexceedsitsinterestintheassociate,includinganylong-termintereststhat,insubstance,formpartoftheGroup’snetinvestmentintheassociate,theGroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfoftheassociate.

ThemostrecentavailableauditedfinancialstatementsoftheassociatesareusedbytheGroupinapplyingtheequitymethod.WherethedatesoftheauditedfinancialstatementsusedarenotcoterminouswiththoseoftheGroup,theshareofresultsisarrivedatfromthelastauditedfinancialstatementsavailableandmanagementfinancialstatementstotheendoftheaccountingperiod.Uniformaccountingpoliciesareadoptedforliketransactionsandeventsinsimilarcircumstances.

IntheCompany’sseparatefinancialstatements,investmentsinassociatesarestatedatcostlessimpairmentlosses.

Ondisposalofsuchinvestments,thedifferencebetweennetdisposalproceedsandtheircarryingamountsisincludedinprofitorloss.

(f) Intangible Assets

(i) Goodwill

GoodwillacquiredinabusinesscombinationisinitiallymeasuredatcostbeingtheexcessofthecostofbusinesscombinationovertheGroup’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities. Following the initial recognition, goodwill is measuredatcostlessanyaccumulatedimpairmentlosses.Goodwillisnotamortisedbutinstead,itisreviewedforimpairment,annuallyor morefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.Gainsandlossesonthedisposalof anentityincludethecarryingamountofgoodwillrelatingtotheentitysold.




(f) Intangible Assets (continued)

(ii) Merchant bank licence This representscontributiontoBNMforamerchantbank licencetotransformECMLIB, theUniversalBrokersubsidiary intoan Investment

Bank.Themerchantbanklicencehasindefiniteusefullifeandisstatedatcostlessaccumulatedimpairmentlosses.

Merchantbank licence isnotamortisedbut tested for impairmentannuallyormore frequently if theeventsorchanges incircumstances indicatethatthecarryingvaluemaybeimpaired.Anyimpairmentlossisrecognisedinincomestatement.

(g) Property, Plant and Equipment, and Depreciation Allitemsofproperty,plantandequipmentareinitiallyrecordedatcost.Subsequentcostsareincludedintheasset’scarryingamountorrecognised

asaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheGroupandtheCompanyandthecostoftheitemcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.Allotherrepairsandmaintenancearechargedtotheincomestatementduringthefinancialperiodinwhichtheyareincurred.

Subsequent to recognition, property, plant and equipment are stated at cost less accumulated depreciation and any accumulatedimpairmentlosses.

Depreciationofotherproperty,plantandequipmentisprovidedforonastraight-linebasistowriteoffthecostofeachassettoitsresidualvalueovertheestimatedusefullife,atthefollowingannualrates:

%

Landandbuildings 2

Furnitureandfittingsandofficeequipment 10-20

Computers 20-25

Officerenovations 10-20

Motorvehicles 20

Theresidualvalues,usefullifeanddepreciationmethodarereviewedateachfinancialyear-endtoensurethattheamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandtheexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use ordisposal.Thedifferencebetweenthenetdisposalproceeds,ifanyandthenetcarryingamountisrecognisedinprofitorloss.

(h) Investment Properties Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Such properties are

measuredatcost, includingtransactioncosts, lessaccumulateddepreciationandimpairmentloss.Costrepresentthecostfortheconstructionandacquisitionofinvestmentproperties.

Investmentpropertyisderecognisedwheneitherithasbeendisposedoforwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitisexpectedfromitsdisposal. Anygainsorlossesontheretirementordisposalofaninvestmentpropertyarerecognisedinprofitorlossintheyearinwhichtheyarise.




(i) Impairment of Non-financial Asset Thecarryingamountsofnon-financialassets,otherthaninvestmentpropertiesanddeferredtaxassets,arereviewedateachbalancesheetdate

todeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,theasset’srecoverableamountisestimatedtodeterminetheamountofimpairmentloss.

Forgoodwill,therecoverableamountisestimatedateachbalancesheetdateormorefrequentlywhenindicatorsofimpairmentareidentified.

Forthepurposeofimpairmenttestingoftheseassets,recoverableamountisdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,recoverableamountisdeterminedforthecash-generatingunit("CGU")towhichtheassetbelongsto.Goodwillacquiredinabusinesscombinationis,fromtheacquisitiondate,allocatedtoeachoftheGroup’sCGUs,orgroupsofCGUs,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveofwhetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupsofunits.

Anasset’srecoverableamountisthehigherofanasset’sorCGU’sfairvaluelesscoststosellanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Wherethecarryingamountofanassetexceedsitsrecoverableamount,theassetisconsideredimpairedandiswrittendowntoitsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen,toreducethecarryingamountoftheotherassetsintheunitorgroupsofunitsonapro-ratabasis.

Animpairmentloss isrecognisedinprofitor loss intheperiodinwhichitarises. Impairmentlossongoodwill isnotreversedinasubsequentperiod.Animpairmentlossforanassetotherthangoodwillisreversedif,andonlyif,therehasbeenachangeintheestimatesusedtodeterminetheasset’srecoverableamountsincethelastimpairmentlosswasrecognised.Thecarryingamountofanassetotherthangoodwillisincreasedto itsrevisedrecoverableamount,providedthatthisamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined(netofamortisationordepreciation)hadnoimpairmentlossbeenrecognisedfortheassetinprioryears.Areversalofimpairmentlossforanassetotherthangoodwillisrecognisedinprofitorloss.

(j) Inventories InventoriesconsistofstocksofunitsinunittrustfundsheldbyasubsidiaryoftheGroup.Theseinventoriesarevaluedatthelowerofcostand

marketvalueonaggregatebasis.Costisdeterminedusingtheweightedaveragebasis.

(k) Provisions for Liabilities ProvisionsforliabilitiesarerecognisedwhentheGrouphasapresentobligationasaresultofapasteventanditisprobablethatanoutflowof

resourcesembodyingeconomicbenefitswillberequiredtosettletheobligation,andareliableestimateoftheamountcanbemade.Provisionsarereviewedateachbalancesheetdateandadjustedtoreflectthecurrentbestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpre-taxratethatreflects,whereappropriate,therisksspecifictotheliability.Wherediscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasfinancecost.

(l) Financial Instruments FinancialinstrumentsarerecognisedinthebalancesheetwhentheGrouphasbecomeapartytothecontractualprovisionsoftheinstrument.

Financialinstrumentsareclassifiedasliabilitiesorequityinaccordancewiththesubstanceofthecontractualarrangement.Interest,dividendsandgainsandlossesrelatingtoafinancialinstrumentclassifiedasaliability,arereportedasexpenseorincome.Distributionstoholdersoffinancialinstrumentsclassifiedasequityarerecogniseddirectlyinequity.FinancialinstrumentsareoffsetwhentheGrouphasalegallyenforceablerighttooffsetandintendstosettleeitheronanetbasisortorealisetheassetandsettletheliabilitysimultaneously.




(l) Financial Instruments (continued) Theaccountingpoliciesforfinancialinstrumentsrecognisedonthebalancesheetaredisclosedintheindividualpolicystatementsassociatedwith eachitem.

(i) Equity instruments

Ordinarysharesareclassifiedasequity.Dividendsonordinarysharesarerecognisedinequityintheperiodinwhichtheyaredeclared.

Thetransactioncostsofanequitytransactionareaccountedforasadeductionfromequity,netoftax.Equitytransactioncostscompriseonlythoseincrementalexternalcostsdirectlyattributabletotheequitytransactionwhichwouldotherwisehavebeenavoided.

(ii) Marketable securities

Marketable securities represent quoted securities and fixed income securities which are carried at the lower of cost and market value,determinedonaportfoliobasis.Costisdeterminedontheweightedaveragebasiswhilemarketvalueisdeterminedbasedonquotedmarketvaluesatthecloseofbusinessatthebalancesheetdate.

Increasesordecreases inthecarryingamountofmarketablesecuritiesarecreditedorchargedtotheincomestatementasallowanceforimpairmentlossofmarketablesecuritiesorasallowancewrittenback.Allowanceforwrite-downismadewhenthemarketablesecuritiesbecomelessmarketableasstatedinaccordancewiththeRulesofBursaMalaysia.

Ondisposalofmarketablesecurities,thegainorlossrepresentingthedifferencebetweennetdisposalproceedsanditscarryingamountiscreditedorchargedtotheincomestatements.

(iii) Other Non-Current Investments

Othernon-currentinvestmentsconsistoflongterminvestmentsinquoted,unquotedsharesandunittrusts.Theseinvestmentsarestatedatcostlessimpairmentlosses.

On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in the incomestatement.

(iv) Receivables

Tradereceivablesrelatingtothestockbrokingactivitiesarecarriedatanticipatedrealisablevalues.Baddebtsarewrittenoffwhenidentified.Whenanaccountisclassifiedasnon-performing,interestissuspendedandissubsequentlyrecognisedonacashbasis.

InaccordancewiththeRulesofBursaMalaysia,clients’accountsareclassifiedasnon-performingunderthefollowingcircumstances:

Types of account Criteria for classification as non-performing

ContraLosses Whentheaccountremainsoutstandingfor16calendardaysormorefromthedate ofcontratransaction.

Overduepurchasecontracts WhentheaccountremainsoutstandingfromT+3marketdaysonwards.

Marginaccounts Whenthevalueofcollateralhasfallenbelow130%oftheoutstandingbalance.




(l) Financial Instruments (continued) (iv) Receivables (continued)

- Specific allowance

Specificallowancesforbadanddoubtfulreceivablesaremadeforaccountswhichhavebeenclassifiedasnon-performing,netofinterest- in-suspenseandtakingintoconsiderationanycollateralheldandthedepositofdealers'representativesandallamountsduetotheGroup, inaccordancewiththeRulesofBursaMalaysia.

- General allowance

Generalallowancesaremadetocoverpossiblelosseswhichhavenotbeenspecificallyidentifiedbasedonacertainpercentageofitstotal tradereceivables,afterdeductingspecificallowancesandinterest-in-suspense.Generalallowancesaremadebasedonacertainpercentage oftradereceivables(excludingoutstandingpurchasecontractswhicharenotdueforpayment),netof interest-in-suspenseandspecific allowancesalreadymade.

Other trade, non-trade and loan receivables are carried at anticipated realisable values. Allowance for doubtful debts is made based onestimatesofpossiblelosseswhichmayarisefromnon-collectionofcertainreceivableaccountswhiledebtsconsideredtobeuncollectiblearewrittenoff.

(v) Cash and Cash Equivalents

Cashandcashequivalentsconsistofcashinhand,bankbalancesanddepositplacementsmaturinglessthanonemonthheldforthepurposeofmeetingshorttermcommitmentsandreadilyconvertibleintocashwithoutsignificantriskofchangesinvalue.

(vi) Interest Bearing Loans and Borrowings

Allloansandborrowingsareinitiallyrecognisedatthefairvalueoftheconsiderationreceivedlessdirectlyattributabletransactioncosts.Afterinitialrecognition,interestbearingloansandborrowingsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

(vii) Payables Tradeandotherpayablesarestatedatcostwhichisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsandservicesreceived.

(m) Revenue and Income Recognition RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheGroupandtherevenuecanbereliablymeasured.

Thefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:

(i) Grossbrokerage is recognisedupontheexecutionof tradeonbehalfofclients,computedbasedonapre-determinedpercentageof the contractvalue.

(ii) Marginincomecomprisemargininterestincomeandrolloverfees.Margininterestincomeisrecognisedonanaccrualbasisexceptwheresuch margin account is considered non-performing in accordance with Schedule 7A of the Rules of Bursa Malaysia, in which case recognition ofsuchinterest issuspended.Subsequenttosuspension, interest isrecogniseduponreceiptuntilallarrearshavebeenpaid.Rolloverfees arerecognisedonanaccrualbasis.Rolloverfeesfromnon-performingmarginaccountswillbesuspendeduntiltheaccountsarereclassified asperforming.




(m) Revenue and Income Recognition (continued)

(iii) Gainsorlossesondisposalofinvestmentsarerecogniseduponconfirmationoftransactionsbythestockbrokers.

(iv) Unittrustandfundmanagementfeesarerecognisedonanaccrualbasis.

(v) Underwriting,advisory,arrangementandplacementfeesarerecognisedasandwhenservicesareperformed.

(vi) OtherrevenueearnedbytheGrouparerecognisedonthefollowingbases:

Dividendincome-whentherighttoreceivepaymentisestablished.

Managementfeeandrentalincome-accrualbasisbyreferencetotheagreementsentered.

Otherinterestincome-onanaccrualbasisunlesscollectibilityisindoubt,inwhichcasetheyarerecognisedonreceiptbasis.

(n) Foreign Currencies

(i) Functional and Presentation Currency

TheindividualfinancialstatementsofeachentityintheGrouparemeasuredusingthecurrencyoftheprimaryeconomicenvironmentinwhichtheentityoperates(“thefunctionalcurrency”).TheconsolidatedfinancialstatementsarepresentedinRinggitMalaysia(RM),whichisalsotheCompany’sfunctionalcurrency.Allvaluesareroundedtothenearestthousand(RM'000)exceptwhenotherwiseindicated.

(ii) Foreign Currency Transactions

In preparing the financial statements of the individual entities, transactions in currencies other than the Company’s functional currency(foreigncurrencies)arerecordedinthefunctionalcurrenciesusingtheexchangeratesprevailingatthedatesofthetransactions.Ateachbalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedattheratesprevailingonthebalancesheetdate.Non-monetaryitemscarriedatfairvaluethataredenominatedinforeigncurrenciesaretranslatedattheratesprevailingonthedatewhenthefairvaluewasdetermined.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyarenottranslated.

Exchangedifferencesarisingonthesettlementofmonetaryitems,andonthetranslationofmonetaryitems,areincludedinprofitorlossfortheperiod.

Exchangedifferencesarisingonthetranslationofnon-monetaryitemscarriedatfairvalueareincludedinprofitorlossfortheperiodexceptforthedifferencesarisingonthetranslationofnon-monetaryitemsinrespectofwhichgainsandlossesarerecogniseddirectlyinequity.Exchangedifferencesarisingfromsuchnon-monetaryitemsarealsorecogniseddirectlyinequity.

(iii) Foreign Operations

The results and financial position of foreign operations that have a functional currency different from the presentation currency of theconsolidatedfinancialstatementsaretranslatedintoRMasfollows:




(n) Foreign Currencies (continued)

(iii) Foreign Operations (continued)

-Assetsandliabilitiesforeachbalancesheetpresentedaretranslatedattheclosingrateprevailingatthebalancesheetdate;

-Incomeandexpensesforeachincomestatementaretranslatedataverageexchangeratesfortheyear,whichapproximatestheexchangeratesatthedatesofthetransactions;and

-Allresultingexchangedifferencesaretakentotheforeigncurrencytranslationreservewithinequity.

(o) Income Tax Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountofincometaxespayablein

respectofthetaxableprofitfortheyearandismeasuredusingthetaxratesthathavebeenenactedatthebalancesheetdate.

Deferredtax isprovidedfor,usingthe liabilitymethod. Inprinciple,deferredtax liabilitiesarerecognisedforall taxabletemporarydifferencesanddeferredtaxassetsarerecognisedforalldeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,unusedtaxlossesandunusedtaxcreditscanbeutilised.Deferredtaxisnotrecognisedifthetemporarydifferencearisesfromgoodwillornegativegoodwillorfromtheinitialrecognitionofanassetorliabilityinatransactionwhichisnotabusinesscombinationandatthetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferredtaxismeasuredatthetaxratesthatareexpectedtoapplyintheperiodwhentheassetisrealisedortheliabilityissettled,basedontaxratesthathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.Deferredtaxisrecognisedintheincomestatement,exceptwhenitarisesfromatransactionwhichisrecogniseddirectlyinequity,inwhichcasethedeferredtaxisalsorecogniseddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillortheamountofanyexcessoftheacquirer'sinterestinthenetfairvalueoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesoverthecostofthecombination.

(p) Employee Benefits

(i) Short term employee benefits

Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services arerendered by employees. Short term accumulating compensated absences such as paid annual leave are recognised when services arerendered by employees that increase their entitlement to future compensated absences. Short term non-accumulating compensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

(ii) Post-employment benefits - Defined contribution plans

Definedcontributionplansarepost-employmentbenefitplansunderwhichtheGrouppaysfixedcontributionsintoseparateentitiesorfundsandwillhavenolegalorconstructiveobligationtopayfurthercontributionsifanyofthefundsdonotholdsufficientassetstopayallemployeebenefitsrelatingtoemployeeservicesinthecurrentandprecedingfinancialyears.Suchcontributionsarerecognisedasanexpenseintheprofitorlossasincurred.Asrequiredbylaw,companiesinMalaysiamakesuchcontributionstotheEmployeesProvidentFund(“EPF”).




(p) Employee Benefits (continued)

(iii) Share-based Compensation

TheCompany'sEmployeeShareOptionScheme("ESOS"),anequity-settled,share-basedcompensationplan,allowsthestaffoftheGroupanddirectorsofthecompaniestoacquireordinarysharesoftheCompany.Thetotalfairvalueofshareoptionsgrantedtoemployeesisrecognisedasanemployeecostwithacorrespondingincreaseintheequitycompensationreservewithinequityoverthevestingperiodandtakingintoaccounttheprobabilitythattheoptionswillvest.Thefairvalueofshareoptionsismeasuredatgrantdate,takingintoaccount,ifany,themarketvestingconditionsuponwhichtheoptionsweregrantedbutexcludingtheimpactofanynon-marketvestingconditions. Non-market vesting conditions are included in assumptions about the number of options that are expected to becomeexercisableonvestingdate.

Ateachbalancesheetdate,theGrouprevisesitsestimatesofthenumberofoptionsthatareexpectedtobecomeexercisableonvestingdate.Itrecognisestheimpactoftherevisionoforiginalestimates,ifany,intheincomestatement,andacorrespondingadjustmenttoequityovertheremainingvestingperiod.Theequityamountisrecognisedintheshareoptionreserveuntiltheoptionisexercised,uponwhichitwillbetransferredtosharepremium,oruntiltheoptionexpires,uponwhichitwillbetransferreddirectlytoretainedprofit.

Theproceedsreceivednetofanydirectlyattributabletransactioncostsarecreditedtoequitywhentheoptionsareexercised.

(q) Significant Accounting Estimates and Judgements Preparation of the financial statements involved making certain estimates, assumptions concerning the future judgements. They affect the

accounting policies applied, amounts of assets, liabilities, income and expenses reported and disclosures made.They are assessed on an on-goingbasisandarebasedonexperienceandrelevantfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Changes in theseestimatesandassumptionsbymanagementmayhaveaneffectonthebalancesas reported in financialstatements.

(i) Impairment of goodwill and other intangible assets

TheGroupdetermineswhethergoodwillandotherintangibleassetsareimpairedatleastonanannualbasis.Thisrequiresanestimationofthevalue-in-useofthecash-generatingunits(“CGU”)towhichgoodwillandotherintangibleassetsareallocated.Estimatingavalue-in-useamountrequiresmanagementtomakeanestimateoftheexpectedfuturecashflowsfromtheCGUandalsotochooseasuitablediscountrateinordertocalculatethepresentvalueofthosecashflows.

(ii) Classification of investments

Managementusesitsjudgementtodeterminetheclassificationofitsinvestmentsintocurrentandnon-current.Aninvestmentisclassifiedascurrentifitisreadilyrealisableanditisheldfortradingorintendedbymanagementtoberealisedwithin12monthsafterthebalancesheetdate.Allotherinvestmentsareclassifiedasnon-current.

(iii) Income taxes

DeferredtaxassetsarerecognisedforallunusedtaxlossesandunabsorbedcapitalallowancestotheextentthatitisprobablethattaxableprofitwillbeavailableintherespectiveentitywithintheGroupagainstwhichthelossesandcapitalallowancescanbeutilised.Significantmanagement judgement, which will be reviewed periodically, is required to determine the amount of deferred tax assets that can berecognised,baseduponthelikelytimingandleveloffuturetaxableprofitstogetherwithfuturetaxplanningstrategies.ThedisclosureonthedeferredtaxassetsandunrecognisedtaxlossesandcapitalallowancesareinNote17.




(q) Significant Accounting Estimates and Judgements (continued)

(iv) Classification between investment properties and property, plant and equipment

TheGrouphasdevelopedcertaincriteriabasedonFRS140inmakingjudgementwhetherapropertyqualifiesasaninvestmentproperty.Investmentpropertyisapropertyheldtoearnrentalsorforcapitalappreciationorboth.

Somepropertiescompriseaportionthat isheldtoearnrentalsorforcapitalappreciationandanotherportionthat isheldforuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposes.Iftheseportionscouldbesoldseparately(orleasedoutseparatelyundera finance lease), theGroupwouldaccount for theportionsseparately. If theportionscouldnotbesoldseparately, theproperty isaninvestmentpropertyonlyifaninsignificantportionisheldforuseintheproductionorsupplyofgoodsorservicesorforadministrativepurposes.Judgementismadeonanindividualpropertybasistodeterminewhetherancillaryservicesaresosignificantthatapropertydoesnotqualifyasinvestmentproperty.

Inthecurrentfinancialyear,theGrouphastenantedoutaportionofitsfreeholdbuildingtoathirdpartywhilstanotherportionisusedbycertainsubsidiariesoftheGroupastheirprincipalplaceofbusiness.TheGrouphasnotclassifiedthisportionasinvestmentpropertyastheportionstenantedbyexternalpartiescannotbesoldseparatelyandtheportionsusedbytheGroupinthesupplyofgoodsandservicesisnotaninsignificantportion.Accordingly,thispropertyisstillclassifiedasproperty,plantandequipmentinthefinancialstatementsoftheGroupasattheendofthecurrentfinancialyear.

(v) Provision for ESOS-related costs

The Group and the Company made certain provisions for ESOS-related costs which are calculated using a binomial model. The fairvalue of equity-settled share options granted is estimated as at the date of grant using the binomial model, taking into account thetermsandconditionsuponwhichtheoptionsweregranted.Thefollowingtableliststheassumptioninputstothemodelused:

Shareprice(asat25Jan08)(RM) 0.815

Exerciseprice(RM) 1.00

Expectedvolatility(%) 32.08%

Riskfreeinterestrate(%) 3.50%

Dividendpayout(RM) 0.02

Averagedividendyield(%) 1.50%

Historicaldividendyield(%) 1.00%

Expectedfuturedividendyield(%) 2.00%

Actualvolatilityinthefuturemaydifferfromtheexpectedvolatility,nonethelesstheexpectedvolatilityreflectstheGroup'sbestestimateoffuturevolatilityovertheremainingoptionperiod.



3. REVENUE Group Company

2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Brokerageincome 120,465 69,199 - -

Managementfees 15,638 22,237 - -

Placementfees 12,569 6,481 - -

Marginandotherfeesincome 15,461 12,458 - -

Corporatefinanceandadvisoryfee 3,105 4,345 - -

Interestincome

-deposits 14,054 12,306 1,331 269 -others 212 2,539 795 1,083

Rentalincome 1,075 - 77 -

Grossdividendincomefrom:

-subsidiarycompany - - 57,244 8,333 -otherinvestments 612 1,167 - -

Gainondisposalofmarketablesecurities 21,861 13,780 - -

205,052 144,512 59,447 9,685

4. OPERATING PROFIT

OtherthanthoseitemsdisclosedinNote3,operatingprofitisstated:

Group Company

2008 2007 2008 2007 RM’000 RM ‘000 RM’000 RM’000

Aftercharging:

Staffcosts(excludingdirectors'remuneration)(Note(i)) 34,908 26,458 1,831 -

ContributionstoEPF 3,004 2,612 8 -

Directors’remuneration(Note(ii)) 5,216 8,594 2,752 204



4. OPERATING PROFIT/(LOSS) (continued) Group Company 2008 2007 2008 2007 RM’000 RM ‘000 RM’000 RM’000

Aftercharging:(continued)

Depreciationof: -property,plantandequipment 6,214 6,330 372 - -investmentproperties 12 21 - -

Rentalof: -premises 3,568 3,072 25 - -equipment - 130 - -

Auditors’remuneration: -statutory 216 221 28 25 -others 70 5 5 5

(Reversalof )/allowancefordoubtfuldebts: -tradereceivables (2,238) 1,818 - - -otherreceivables 2,778 - - -

Lossondisposalofproperty,plantandequipment 178 97 - -

CostarisingfromEmployeesShareOptionScheme("ESOS") 2,075 - 1,495 -

Andcrediting:

Exchangetranslationgain 1,610 1,168 - -

Badreceivableswrittenoffnowrecovered 97 272 - -

Note(i) Staffcostsincludesalaries,bonuses,costarisingfromESOSandallotherstaff-relatedexpensesbutexcludingdirectors’remuneration.

Note(ii) Directors’remunerationconsistsofthefollowing:

Group Company 2008 2007 2008 2007 RM’000 RM ‘000 RM’000 RM’000

DirectorsoftheCompany(Note(iii)): Fees 295 195 295 195 Otheremoluments 2,457 977 2,457 9

Directorsofsubsidiarycompanies: Fees 196 158 - - Otheremoluments 2,268 7,264 - -

5,216 8,594 2,752 204

Estimatedmonetaryvalueofbenefits-in-kindreceivedbydirectors - - - -



4. OPERATING PROFIT/(LOSS) (continued)

Note(iii)ThetotalremunerationofthedirectorsoftheCompanyduringthefinancialyearfallwithinthefollowingbands:

Number of directors

2008 2007 Executivedirectors: RM50,000toRM950,000 - - RM950,001toRM1,000,000 1 - RM1,000,001toRM1,500,000 - - RM1,500,001toRM1,550,000 1 -

Non-executivedirectors: BelowRM50,000 3 6 RM50,000toRM100,000 2 - RM500,001toRM550,000 - 2*

*Twoofthenon-executivedirectorswerepreviouslyexecutivedirectorsoftheoperatingsubsidiariesofECMLibraBerhadpriortothemerger.

5. (LOSS)/GAIN ON DISPOSAL OF INVESTMENTS Group Company 2008 2007 2008 2007 RM’000 RM‘000 RM’000 RM’000

(Loss)/gainondisposalof: -quotedinvestments - 2,314 - - -associatedcompanies 941 - 499 - -subsidiarycompanies - 433 - - -investmentproperties 489 - - - -otherinvestments (2,614) - - -

(1,184) 2,747 499 -



6. WRITEBACK OF/(ALLOWANCE FOR) IMPAIRMENT LOSS Group Company 2008 2007 2008 2007 RM’000 RM‘000 RM’000 RM’000

Writebackof/(allowancefor)impairmentlossoninvestments

-investmentinassociatedcompanies - (5,983) - -

-otherinvestments 9,211 (12,659) - -

9,211 (18,642) - -

7. RATIONALISATION EXPENSES

Rationalisation expenses in the previous financial year relate to expenses incurred by the Group to streamline its business activities following thecompletionofthemergerexerciseundertakeninthepreviousfinancialyear.IncludedintherationalisationexpensesoftheGroupare:

2007

RM’000

Staffvoluntaryseparationandretentionschemes 10,097

Property,plantandequipmentwrittenoff 5,637

Relocationexpenses 1,019

Otherexpenses 616

17,369

8. FINANCE COSTS Group Company 2008 2007 2008 2007 RM’000 RM‘000 RM’000 RM’000

Financecostsconsistofinterestexpenseonshorttermborrowings 2,399 3,450 38 -



9. INCOME TAX EXPENSE Group Company 2008 2007 2008 2007 RM’000 RM‘000 RM’000 RM’000

Incometax:

-Currentyear'sprovision 3,240 3,639 4,658 2,713 -Realpropertygainstax 29 - - - -Under/(over)provisionoftaxinprioryears 252 (445) (96) -

3,521 3,194 4,562 2,713 Deferredtaxation:

-Relatingtooriginationandreversaloftemporarydifferences(Note17) (5,265) (5,000) - -

(1,744) (1,806) 4,562 2,713

DomesticincometaxiscalculatedattheMalaysianstatutorytaxrateof26%(2007:27%)oftheestimatedassessableprofitfortheyear.Thedomesticstatutorytaxratewillbereducedto25%fromthecurrentyear’srateof26%,effectiveyearofassessment2009.Thecomputationofdeferredtaxasat31January2008hasreflectedthesechanges.

Theincometaxexpensefortheyearcanbereconciledtotheprofitbeforetaxperincomestatementsasfollows:

Group Company 2008 2007 2008 2007 RM’000 RM‘000 RM’000 RM’000

Profitbeforetaxation 82,643 18,352 54,147 9,025

Taxattherateof26%(2007:27%) 21,487 4,955 14,078 2,437

Taxeffectsof: Non-allowableexpenses 4,429 7,543 1,109 276 Non-taxableincome (1,670) (5,310) (10,529) - Under/(over)provisionoftaxinprioryears 252 (445) (96) -

Realpropertygainstax 29 - - -

Deferredtaxnotrecognisedontemporarydifferences (1,037) - - -

Deferredtaxrecognisedonunabsorbedtaxlosses (5,000) - - -

Utilisationofdeferredtaxassetspreviouslynotrecognised (20,415) (5,867) - -

Effectofchangesintaxrateonopeningbalanceofdeferredtax 181 (2,682) - -

(1,744) (1,806) 4,562 2,713



10. EARNING PER ORDINARY SHARE

ThebasicanddilutedearningsperordinaryshareiscalculatedbydividingtheGroup’sprofitaftertaxationofRM84,387,000(2007:RM20,158,000)bytheweightedaveragenumberofordinarysharesinissueduringtheyearof830,902,000(2007:779,402,000).

Forthefinancialyearended31January2008,outstandingESOShavebeenexcludedfromthecomputationoffullydilutedearningsperRM1ordinarysharesastheirconversiontoordinaryshareswouldbeanti-dilutive.

11. PROPERTY, PLANT AND EQUIPMENT

Furniture Freehold and fittings land and and office Motor Group building equipment Computers vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1February2007 42,557 23,299 21,603 3,840 91,299

Reclassification (633) (189) 821 1 -

Additions 5 1,002 1,034 1,592 3,633

Write-offs - (328) (425) - (753)

Disposals - - (85) (1,489) (1,574)

At31January2008 41,929 23,784 22,948 3,944 92,605

Accumulated Depreciation

At1February2007 2,740 13,447 15,181 1,943 33,311

Reclassification (68) (367) 434 1 -

Chargeduringtheyear 803 1,912 2,790 709 6,214

Write-offs - (156) (279) - (435)

Disposals - - (85) (909) (994)

At31January2008 3,475 14,836 18,041 1,744 38,096

Net Carrying Amount

At31January2008 38,454 8,948 4,907 2,200 54,509



11. PROPERTY, PLANT AND EQUIPMENT (continued)

Furniture Freehold and fittings land and and office Motor Group building equipment Computers vehicles Total RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1February2006 43,240 14,764 11,335 3,466 72,805

Acquisitionofsubsidiaries 2 19,048 17,144 1,667 37,861

Additions 511 528 2,345 382 3,766

Write-offs - (9,461) (8,671) (125) (18,257)

Disposalofsubsidiaries - (1,425) (282) (15) (1,722)

Disposals (1,196) (155) (268) (1,535) (3,154)

At31January2007 42,557 23,299 21,603 3,840 91,299


At1February2006 1,979 7,171 8,521 1,229 18,900

Acquisitionofsubsidiaries - 10,127 12,437 631 23,195

Chargeduringtheyear 863 2,052 2,470 945 6,330

Write-offs - (4,754) (7,739) (127) (12,620)

Disposalofsubsidiaries - (1,047) (246) (15) (1,308)

Disposals (102) (102) (262) (720) (1,186)

At31January2007 2,740 13,447 15,181 1,943 33,311

Net Carrying Amount

At31January2007 39,817 9,852 6,422 1,897 57,988



11. PROPERTY, PLANT AND EQUIPMENT (continued) Includedinproperty,plantandequipmentoftheGrouparethefollowingfullydepreciatedproperty,plantandequipmentwhicharestillinuse:

Group 2008 2007

RM’000 RM’000

Renovation 3,508 -

Computers 11,591 11,530

Furnitureandfittingsandofficeequipment 4,980 7,160

Motorvehicles 769 383

20,848 19,073

Freehold land and Office Motor Company building equipment vehicles Total RM’000 RM’000 RM’000 RM’000

Cost

At1February2007 - - - -

Additions 40,005 2 1,592 41,599

At31January2008 40,005 2 1,592 41,599


At1February2007 - - - -

Chargeduringtheyear 133 - 239 372

At31January2008 133 - 239 372

Net Carrying Amount

At31January2008 39,872 2 1,353 41,227



12. INVESTMENT PROPERTIES

Group

2008 2007 RM’000 RM’000

LocatedinMalaysia:

Shopoffices - 1,062

Less:Accumulateddepreciation - (42)

Net - 1,020

13. INTANGIBLE ASSETS Merchant Bank Group Goodwill Licence Total RM’000 RM’000 RM’000

2008 Cost/Net Carrying Amount

At1February2007 232,000 - 232,000

Additions - 52,500 52,500

At31January2008 232,000 52,500 284,500

Goodwill Total RM’000 RM’000

2007 Cost/Net Carrying Amount

At1February2006 - -

Arisingfromacquisitionofsubsidiariesduringthefinancialyear 232,000 232,000

At31January2007 232,000 232,000



13. INTANGIBLE ASSETS (continued)

The merchant bank licence represents contribution by ECMLIB to BNM to carry on merchant banking business and is considered tohaveindefiniteusefullife,whichisnotamortisedandisassessedforimpairmentannually.

Duringthefinancialyear,theGroupassessedtherecoverableamountofgoodwillandmerchantbanklicence,anddeterminedthatgoodwillassociatedwiththeacquisitionofoperatingsubsidiariesoftheCompanyandthemerchantbanklicencearesustainablebasedonthevalue-in-useaftertakingintoconsiderationthefutureeffectofthemergedoperationsandadiscountfactorof6.76%(2007:5.00%)perannum.

Thefollowingkeyassumptionswereusedbymanagementinassessingtherecoverableamountofgoodwillandthemerchantbanklicence:

(i) Thebasisusedtodeterminethevalue-in-usewasbasedonaprofitbudgetapprovedbymanagementaftertakingintoconsiderationthegrowth rateonthebudgetedprofit.

(ii) ThegrowthrateusedisbasedontheassumptionthatonthemovementoftheKualaLumpurCompositeIndexoveraperiod.

Withregardtotheassessmentofvalue-in-use,managementbelievesthatnoreasonablepossiblechangeinanyoftheabovekeyassumptionswouldcausethecarryingvaluestomateriallyexceeditsrecoverableamounts.

14. INVESTMENT IN SUBSIDIARY COMPANIES Company 2008 2007 RM’000 RM’000

Unquotedsharesinlocalcorporations,atcost 887,922 777,992

Thesubsidiarycompanies,allincorporatedinMalaysiaexceptasotherwiseindicated,areasfollows:

Effective Percentage of Ownership Name of Company 2008 2007 Principal Activities

% %

ECMLibraInvestmentBankBerhad 100 100 Stockbroking,underwriting,placement (formerlyknownasECMLibraAvenue andprovisionofadvisoryservices SecuritiesBerhad)anditssubsidiaries:

-ECMLNominees(Tempatan)Sdn.Bhd. 100 100 Provisionofnomineesservicesforlocalclients (formerlyknownasECMLibraAvenue Nominees(Tempatan)Sdn.Bhd.)

-ECMLNominees(Asing)Sdn.Bhd. 100 100 Provisionofnomineesservicesforforeignclients (formerlyknownasECMLibraAvenue Nominees(Asing)Sdn.Bhd.)



14. INVESTMENT IN SUBSIDIARY COMPANIES (continued)

Thesubsidiarycompanies,allincorporatedinMalaysiaexceptasotherwiseindicated,areasfollows(continued):

Effective Percentage of Ownership Name of Company 2008 2007 Principal Activities

% %

-AvenueKestrelSdn.Bhd. 100 100 Dormant

AvenueInvestBerhad 100 100 Provisionofunittrustandasset anditssubsidiary: managementservices

-AvenueAssetManagement 100 100 Provisionofportfolio Services(Labuan)Ltd. managementservices AvenueServicesSdn.Bhd. 100 100 Provisionofmanagement services ECMLibraHoldingsLimited 100 100 Investmentholdingandprovisionof anditssubsidiaries: advisoryservices

-ECMLibraInvestmentBankLimited 100 100 Provisionofoffshoreinvestmentbanking anditssubsidiary: andrelatedfinancialservices

-ECMLibraInvestmentsLimited 100 100 Investmentholdingandprovisionof (IncorporatedinBritishVirginIslands) financialservices -ECMLibraSecuritiesLimited* 100 100 Dormant (IncorporatedinHongKong)

ECMLibraCapitalSdn.Bhd. 100 100 Provisionofmanagement,investmentadvisory andinvestmentconsultingservices

ECMLibraPartnersSdn.Bhd. 100 100 Provisionofcreditservices *AuditedbyfirmotherthanErnst&Young.



14. INVESTMENT IN SUBSIDIARY COMPANIES (continued)

Thesubsidiarycompanies,allincorporatedinMalaysiaexceptasotherwiseindicated,areasfollows:(continued) Effective Percentage of Ownership Name of Company 2008 2007 Principal Activities

% %

ECMLibraCapitalMarketsSdnBhd 100 100 Provisionoffundmanagementservices

AvenueCapitalResourcesBerhad 100 100 Investmentholdingandprovisionof anditssubsidiaries: managementservices

-UltimateAcresSdn.Bhd. 100 100 Dormant

-PiucoEntertainmentVenture(M)Sdn.Bhd. 100 100 Companydissolvedon26January2008 (Inmembers'voluntaryliquidation)

ACRBCapitalSdn.Bhd. 100 100 Dormant

ECMLibraSecuritiesSdn.Bhd. 100 100 Dormant anditssubsidiaries: -ECMLibraSecuritiesNominees 100 100 Dormant (Tempatan)Sdn.Bhd.

-ECMLibraSecuritiesNominees 100 100 Dormant (Asing)Sdn.Bhd.

-ECMLibraSecuritiesNomineesSdn.Bhd. 100 100 Dormant -ECMLibraSecuritiesPortfolio 100 100 Dormant ManagementSdn.Bhd.



15. INVESTMENT IN ASSOCIATED COMPANIES Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Quotedshares,outsideMalaysia 39,492 42,380 - -

Unquotedshares,withinMalaysia - 3,918 - 3,918

39,492 46,298 - 3,918

Shareinpostacquisitionresults 3,788 91 - -

43,280 46,389 - 3,918

Less:Impairmentloss - - - -

Net 43,280 46,389 - 3,918

Quotedshares,outsideMalaysia Atmarketvalue 18,622 27,178 - - Atfairvalue 21,459 18,233 - -

ThecarryingvalueoftheGroup'squotedinvestmentinanassociatedcompanyhasexceededthemarketvaluebyapproximatelyRM24,658,000(2007:RM19,211,000).Basedonthedirectors’valuation,thecarryingvalueoftheGroup’s investment inassociatedcompanyissupportedby itsrecoverableamount.

Theassociatedcompanies,allincorporatedinMalaysia,exceptasotherwiseindicated,areasfollows:

Effective Percentage of Ownership

Name of Company Principal Activities Year end 2008 2007

WestcombFinancialGroupLimited(IncorporatedinSingapore) Investmentholding 31December 24 24 MuamalatAvenueSdn.Bhd. Provisionofasset 31December - 40 management services

On18December2006,theCompanyenteredintoaconditionalsharesaleagreementwithBankMuamalatMalaysiaBerhadforthedisposalofitsentire40%equityinterestheldinMuamalatAvenueSdn.Bhd.forRM4.42million.Thesaiddisposalwascompletedon15March2007.



15. INVESTMENT IN ASSOCIATED COMPANIES (continued)

Thefollowingamountsrepresenttheassets,liabilities,revenueandexpensesoftheassociatedcompaniesoftheGroupremainingasatyearend:

Group 2008 2007 RM’000 RM’000

Property,plantandequipment 428 1,103

Intangibleassets 2,974 3,119

Investments 216 395

Currentassets 163,031 191,573

Currentliabilities (74,724) (109,133)

Longtermliabilities (895) (206)

NetAssets 91,030 86,851

Revenue 48,286 24,426

Expenses (32,011) (22,961)

Profitbeforetaxation 16,275 1,465

Incometaxexpense (2,923) (382)

Netprofitfortheyear 13,352 1,083

16. OTHER INVESTMENTS Group 2008 2007 RM’000 RM’000

Sharesinunquotedlocalcorporations,atcost 2,240 6,759

Otherquotedinvestments 10,624 15,139

12,864 21,898

Less:Impairmentloss (560) (7,879)

12,304 14,019

Marketvalueof: Otherquotedinvestments 11,921 16,485



17. DEFERRED TAX ASSETS/(LIABILITIES)

Group 2008 2007 RM’000 RM’000

Atbeginningofthefinancialyear 4,567 (117)

Acquisitionofsubsidiarycompanies - (316)

Recognisedintheincomestatement(Note9) 5,265 5,000

Atendofthefinancialyear 9,832 4,567

Presentedafterappropriateoffsettingasfollows:

Deferredtaxassets 10,000 5,000

Deferredtaxliabilities (168) (433)

9,832 4,567

Allmovementindeferredtaxassetsandliabilitieshavebeenrecognisedintheincomestatement.Thecomponentsofdeferredtaxliabilitiesandassetsasatthe endofthefinancialyearareasfollows:

Group 2008 2007 RM’000 RM’000

Acceleratedcapitalallowance 168 983

Unutilisedtaxlosses (10,000) (5,000)

Provisions - (197)

Others - (353)

(9,832) (4,567)



17. DEFERRED TAX ASSETS/(LIABILITIES) (continued) Deferredtaxassetshavenotbeenrecognisedinrespectofthefollowingitems:

Group 2008 2007 RM’000 RM’000

Unusedtaxlosses 169,800 246,796

Excessofcapitalallowancesoverdepreciationofproperty,plantandequipment (464) (3,065)

Othertemporarydifferences 32 5,452

Netdeferredasset 169,368 249,183

TheunutilisedtaxlossesandunabsorbedcapitalallowancesoftheGroupareavailableindefinitelyforoffsettingagainstfuturetaxableprofitsoftherespectiveentitieswithintheGroup,subjecttonosubstantialchangeinshareholdingsofthoseentitiesundertheIncomeTaxAct,1967andguidelinesissuedbythetaxauthority.

18. INVENTORIES

Group 2008 2007 RM’000 RM’000

Atcost: UnittrustquotedinMalaysia-manager’sstocks 89 1,016

MarketvalueoftrustunitsquotedinMalaysia 89 1,016

19. MARKETABLE SECURITIES Group 2008 2007 RM’000 RM’000

Atcost: Unquotedprivatedebtsecurities 64,373 120,545

Less:Allowancefordiminutioninvalue (4,400) (2,115)

59,973 118,430



19. MARKETABLE SECURITIES (continued) Group 2008 2007 RM’000 RM’000

Quotedshares 104,122 98,124

Less:Allowancefordiminutioninvalue - (8,884)

104,122 89,240

Net 164,095 207,670

Indicativemarketvalueof: Unquotedprivatedebtsecurities 66,219 120,927Quotedshares 112,357 92,756

20. TRADE RECEIVABLES Group 2008 2007 RM’000 RM’000

Amountowingbyclients 367,731 697,044Amountowingbybrokers 183,847 334,902

551,578 1,031,946

Less:Allowancefordoubtfulreceivables -specificallowance(Note(a)) (271) (1,102) -generalallowance(Note(b)) (2,775) (4,790) -interest-in-suspense(Note(c)) (725) (944)

547,807 1,025,110

AmountduebyTrustees 3,038 2,368

Othertradereceivables - 387

Net 550,845 1,027,865



20. TRADE RECEIVABLES (continued) Thetradesettlementfortheamountsowingbyclientsandbrokersis3marketdaysaccordingtotheFixedDeliveryandSettlementSystem("FDSS")

tradingrulesofBursaMalaysiaSecuritiesBerhad("BursaMalaysia").Thetradecredittermsformarginclientsaresetwithinstandardmarginagreements.

Thetradecredittermsforothertradereceivablesgenerallyrangesfrom30daysto90days.Othertradecredittermsareassessedandapprovedonacase-by-casebasis.

Movementsintheallowanceforbadanddoubtfulreceivablesandinterest-in-suspenseaccountsareasfollows:

Group 2008 2007 RM’000 RM’000

(a) SpecificAllowance: Balanceatbeginningofyear 1,102 164

Acquiredfrombusinessmerger - 562

Allowancemadeduringtheyear 695 376

Allowancenolongerrequired (918) -

Amountwrittenoff (608) -

Balanceatendofyear 271 1,102

(b) GeneralAllowance: Balanceatbeginningofyear 4,790 3,095


Allowancemadeduringtheyear 3,063 1,442

Writtenback (5,078) -

Balanceatendofyear 2,775 4,790

(c) Interest-in-suspense: Balanceatbeginningofyear 944 435


Suspendedduringtheyear 465 -

Writtenback (684) (201)

Balanceatendofyear 725 944



20. TRADE RECEIVABLES (continued) Theclassificationofnon-performingaccountsinaccordancewithRule1104.1,Schedule7AoftheRulesofBursaMalaysiaisasfollows:

Group 2008 2007 RM’000 RM’000

Non-performingaccounts,classifiedasdoubtful 126 111

Non-performingaccounts,classifiedasbad 1,242 3,023

Totalnon-performingaccounts 1,368 3,134

21. LOAN RECEIVABLES AlloftheGroup'sloanreceivablesaresecured,bearinterestraterangingfrom9.0%to10.0%perannum(2007:9.5%to11.0%perannum)andmature

withinayear.

22. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Group Company

2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Taxrecoverable 7,233 9,427 180 -

Depositsandprepayments 6,905 17,340 100 13

Otherreceivables 5,285 5,865 24 6

19,423 32,632 304 19

IncludedindepositsoftheGroupinthepreviousfinancialyearwasanamountofRM10,000,000whichrepresentsdepositpaidtotheGovernmentofMalaysiafortheissuanceofamerchantbanklicenceasoneofthepre-conditionsfortheproposedtransformationofECMLIBintoaninvestmentbank.Thisdepositisnon-interestbearing.WiththepaymentofRM42.5millionbyECMLIBbeingthebalancepaymentforthemerchantbanklicence,thesaiddeposithasbeenreclassifiedtointangibleassetsasdisclosedinnote13.



23. AMOUNTS OWING BY/TO SUBSIDIARY COMPANIES Company

2008 2007 RM’000 RM’000

Amountowingbysubsidiarycompanies 60,070 125,090

Amountowingtosubsidiarycompanies 102,799 79,308

Theamountowingby/tosubsidiarycompaniesmainlyrepresentpaymentsmadeonbehalfandunsecuredadvances,whichareinterestfreewithnofixedtermsofrepaymentexceptforamountowingbyasubsidiarycompanytotallingRM28,840,000(2007:RM37,500,000)whichbearinterestrangingfrom3.5%to4.5%(2007:3.5%to4.5%)perannum.

24. DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS

Group Company

2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Depositswith: Licensedbanks 150,432 106,290 - 10,720

Otherfinancialinstitutions - 933 - -

150,432 107,223 - 10,720

IncludedindepositswithlicensedfinancialinstitutionsoftheGroupare:

(a)depositsamountingtoRM600,000(2007:RM600,000)pledgedtothefinancialinstitutionsforcreditfacilitiesgrantedtosubsidiarycompanies;and

(b)shorttermdepositsofRM21,781,000(2007:RM58,171,000)heldintrustonbehalfofasubsidiarycompany’sremisiersandclients.



24. DEPOSITS WITH LICENSED FINANCIAL INSTITUTIONS (continued)

Therangeofeffectiveinterestratesofdepositsasatthebalancesheetdatewereasfollows:

Group Company

2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

% % % %

Depositswith: Licensedbanks 2.4 to 4.9 2.3to5.3 2.5 to 3.1 3.0to3.1 Otherfinancialinstitutions - 3 - -

Theaveragematuritiesofdepositsasattheendofthefinancialyearwereasfollows:

Group Company

2008 2007 2008 2007 Days Days Days Days

Depositswith: Licensedbanks 13 68 29 31 Otherfinancialinstitutions - 14 - -

25. CASH AND BANK BALANCES

IncludedundercashandbankbalancesoftheGroupisanamountofRM198,777,000(2007:RM53,726,000)inrespectofmoneyheldintrustaccountsforremisiersandclientsofasubsidiarycompany.



26. SHARE CAPITAL Number of Ordinary Shares of RM1 Each Amount 2008 2007 2008 2007 Group ’000 ’000 RM’000 RM’000

Authorised: Atbeginning/endofyear 1,500,000 1,500,000 1,500,000 1,500,000

Issuedandfullypaid-up:

Atbeginningofyear 830,902 703,027 830,902 703,027

Cancellationarisingfromcapitalreduction - (314,125) - (314,125)

Issuance - 442,000 - 442,000

Atendofyear 830,902 830,902 830,902 830,902

Company

Authorised:

Atbeginning/endofyear 1,500,000 1,500,000 1,500,000 1,500,000

Issuedandfullypaid-up:

Atbeginningofyear 830,902 * 830,902 *

IssuancepursuanttotheACRBreorganisationexercise - 849,128 - 849,128

Reductionpursuanttodistributionofassets-in-specie - (314,125) - (314,125)

Cancellationbywayofacapitalreductionexercise - (146,101) - (146,101)

Issuancepursuanttoacquisitionofsubsidiaries - 442,000 - 442,000

Atendofyear 830,902 830,902 830,902 830,902

*RepresentRM2.00.

The Company’s Employees Share Option Scheme (“ESOS”) is governed by the by-laws approved by the shareholders at an Extraordinary GeneralMeetingheldon1December2005.TheESOSwasimplementedon4January2008andwillbeinforceforaperiodoften(10)years.



26. SHARE CAPITAL (continued) TheCompanyhasbeengrantedexemptionbytheCompaniesCommissionofMalaysiafromhavingtodisclosethenamesofoptionholdersgranted

lessthan2,000,000optionseachduringtheyearpursuanttothescheme.Thenamesofoptionholders,otherthandirectors,whohadbeengrantedoptionsof2,000,000ormoreasattheendofthefinancialyearareasfollows:

No.ofoptions '000T.Jeyaratnam 2,000FranklinTanKokPin 2,000NgHoeGuan 2,000WongSeongCho 2,000

ThenamesofdirectorswhohadbeengrantedoptionsaredisclosedinthesectionofDirectors'Interestinthisreport.

ThemainfeaturesoftheESOSare,interalia,asfollows:

(i) EligibleemployeesarethoseemployeesoftheGroupwhohadbeeninserviceforatleastoneyearonthedateofoffer.Themaximumallowable allotmentsforthedirectorshadbeenapprovedbytheshareholdersoftheCompanyinageneralmeeting.TheBoardofDirectorsmayfromtime totimeatitsdiscretionselectandidentifysuitableeligibleemployeestobeofferedoptions.

(ii) TheaggregatenumberofsharestobeissuedundertheESOSshallnotexceed15%ofthetotalissuedandpaid-upordinarysharecapitalofthe Companyforthetimebeing.

(ii) TheESOSshallbeinforceforaperiodof10yearsfrom4January2008.

(iv) Theoptionpriceshallnotbeatadiscountofmorethantenpercent(10%)(orsuchdiscountastherelevantauthoritiesshallpermit)fromthe5-day weightedaveragemarketpriceofthesharesoftheCompanyprecedingthedateofofferandshallinnoeventbelessthantheparvalueofthe sharesoftheCompanyofRM1.00.

(v) Anoptionholdermay,inaparticularyear,exerciseuptosuchmaximumnumberofsharesintheoptioncertificateasdeterminedbytheBoardof Directorsorasspecifiedintheoptioncertificate.

Asat31January2008,therewasnoissuanceofnewsharesarisingfromtheexerciseofoptionspursuanttotheESOS.

27. RESERVES Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Non-distributable:

Mergerreserves 26,561 26,561 - -

Foreignexchangetranslationreserve (6,718) (2,047) - -

Equitycompensationreserve 2,075 - 1,495 -

Distributable: Retainedprofits 84,044 5,723 49,829 6,310

Generalreserve 159 159 - -

106,121 30,396 51,324 6,310



27. RESERVES (continued) MergerreservearoseupontakingoverofthelistingstatusofasubsidiarycompanywheretheresultsandthefinancialpositionoftheGrouphavebeen

combinedunderthemergerprinciplesofaccounting,asdescribedintheaccountingpolicies.

Generalreservearosefromtheredemptionofredeemablenon-convertiblepreferencesharesinasubsidiarycompany.

EquitycompensationreservearosefromthegrantingofshareoptionstodirectorsandemployeesoftheCompany.

Inthepast,Malaysiancompaniesadoptthefullimputationsystem.InaccordancewiththeFinanceAct2007whichwasgazettedon28December2007,companiesshallnotbeentitledtodeducttaxondividendpaid,creditedordistributedtoitsshareholders,andsuchdividendswillbeexemptedfromtaxinthehandsoftheshareholders("singletiersystem").However,thereisatransitionalperiodofsixyears,expiringon31December2013,toallowcompaniestopayfrankeddividendstotheirshareholdersunderlimitedcircumstances.Companiesalsohaveanirrevocableoptiontodisregardthesection108balanceandopttopaydividendsunderthesingletiersystem.Thechangeinthetaxlegislationalsoprovidesforthesection108balancetobesectionlocked-inasat31December2007inaccordancewithSection39oftheFinanceAct2007.

TheCompanydidnotelectfortheirrevocableoptiontodisregardthesection108balance.Accordingly,duringthetransitionalperiod,theCompanymayutilisethecredit inthesection108balanceasat31January2008todistributecashdividendpaymentstoordinaryshareholdingsasdefinedundertheFinanceAct2007.Asat31January2008,theCompanyhassufficientcreditinthesection108balancetopayfrankeddividendsamountingto RM14,011,000 (2007: RM6,000,000) out of its retained earnings. If the balance of the retained earnings were to be distributed as dividends, theCompanymaydistributesuchdividendsunderthesingletiersystem.

28. TRADE PAYABLES Company 2008 2007 RM’000 RM’000

Amountowingtoclients 221,982 550,995

Amountowingtobrokers 131,217 234,237

Clients'trustmonies 165,525 85,615

Amountowingtotrustees 2,566 2,060

521,290 872,907

Thetradecredittermfornon-marginclientsandbrokersis3marketdaysaccordingtoFDSStradingrulesofBursaMalaysia.

29. OTHER PAYABLES AND ACCRUED EXPENSES Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Otherpayablesandaccruedexpenses 46,831 65,540 1,840 520

Remisiersanddealerstrustaccounts 25,727 18,458 - -

Depositsreceived 2,196 699 2,196 442

74,754 84,697 4,036 962



30. SHORT TERM BORROWINGS Company 2008 2007 RM’000 RM’000

Termloan-unsecured - 40,000

Interbankborrowing - 60,000

- 100,000

Theunsecuredtermloanduringthepreviousfinancialyearwhichcarriedafixedinterestrateof8%perannumwasfullysettleduponmaturityinthecurrentfinancialyearended31January2008.

Theinterbankborrowingfromalicensedbankinthepreviousfinancialyearwasunsecured,boreinterestof3.70%perannumandwasfullysettleduponmaturityinthecurrentfinancialyearended31January2008.

31. CASH AND CASH EQUIVALENTS Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Depositswithlicensedfinancialinstitutions 150,432 107,223 - 10,720

Cashandbankbalances 219,840 172,747 25 123

370,272 279,970 25 10,843

Less: Shorttermdepositsheldintrust(Note24) 21,781 58,171 - -

Depositspledgedwithfinancialinstitutions(Note24) 600 600 - -

Cashandbankbalancesheldintrust(Note25) 198,777 53,726 - -

221,158 112,497 - -

149,114 167,473 25 10,843



32. DIVIDENDS

Afinaldividendof1sen,less27%tax,amountingtoRM6,066,000proposedinrespectofthefinancialyearended31January2007,waspaidon13July2007.

AttheforthcomingAnnualGeneralMeeting,afinaldividendof3senperordinaryshareofRM1eachon830,901,953ordinaryshares,inrespectofthefinancialyearended31January2008,amountingtoanetdividendpayableofapproximatelyRM20,004,000willbeproposedforshareholders'approval.Asat31January2008,theCompanyhassufficientcredit inthesection108balancetopayfrankeddividendsuptoRM14,011,000andthebalanceofRM5,993,000willbedistributedunderthesingletiersystem.Thefinancialstatementsforthecurrentfinancialyeardonotreflectthisproposeddividend.Suchdividend,ifapprovedbytheshareholders,willbeaccountedforinequityasanappropriationofretainedearningsinthefinancialyearending31January2009.

33. COMMITMENTS Group

2008 2007 RM’000 RM’000

Operational Commitments Approvedbutnotcontractedfor: Underwritingcommitments - 3,401

Capital Commitments Approvedbutnotcontractedfor: Purchaseofproperty,plantandequipment 418 933

Non-cancellation operating lease commitments Futureminimumrentalspayable Notlaterthan1year - 1,901 Laterthan1yearandnotlaterthan5years - 212

- 2,113

Other Commitments Approvedbutnotcontractedfor: BalanceofpaymenttotheGovernmentofMalaysiafor transformationofasubsidiaryintoaninvestmentbank* - 42,500

*On6February2008,ECMLIB,asubsidiaryoftheCompany,wasgrantedamerchantbanklicencebytheMinisterofFinancetoallowECMLIBtocarryonmerchantbankingbusiness.



34. SIGNIFICANT RELATED PARTY TRANSACTIONS

(a) Inadditiontothetransactionsdetailedelsewhereinthefinancialstatements,theGroupandtheCompanyhadthefollowingtransactionswith relatedpartiesduringthefinancialyear:

Group 2008 2007 RM’000 RM’000

Transactionwithacompanyinwhichadirectorandshareholderofholdingcompanyhasinterestin:

Projectmanagementfee 439 263

ThedirectorsoftheCompanyareoftheopinionthattheabovetransactionshadbeenenteredintointhenormalcourseofbusinessandhadbeen establishedundertermsthatarenolessfavourablethanthosearrangedwithindependentthirdparties.

(b) Compensationofkeymanagementpersonnel

Theremunerationofdirectorsandothermembersofkeymanagementduringtheyearwasasfollows: Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Short-termemployeebenefits 5,640 8,441 3,628 209

Definedcontributionplan 669 338 412 186

6,309 8,779 4,040 395

Includedinthetotalkeymanagementpersonnelare:

Group Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000

Directors'remuneration(Note4(ii)) 5,216 8,594 2,752 204



35. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Objectives and Policies

TheoperationsoftheGrouparesubjecttoavarietyoffinancialrisks,includinginterestraterisk,creditrisk,liquidityrisk,cashflowriskandprice risk.TheGrouphas formulateda financial riskmanagement frameworkwhoseprincipalobjective is tominimisetheGroup’sexposuretorisks and/orcostsassociatedwiththefinancing,investingandoperatingactivitiesoftheGroup.

(b) Interest rate risk

TheGroupisexposedtointerestrateriskthroughtheimpactofratechangesoninterestbearingfixeddepositsandbankborrowings.Theinterest rateoffixeddepositsandshorttermborrowingsaredisclosedinNote24and30respectively.

(c) Credit risk

Creditriskisthepotentiallossofrevenueandprincipallossesintheformofspecificprovisionsasaresultofpartialortotaldefaultordebtsand/or marginfinancing.

Experiencedkeypersonnelareappointedtohighlevelmanagementcommitteestoestablishoverallcreditrisklimits,marginfinancingassessment, collateralandprudentlendingpolicies.

TheGroupisexposedtocreditriskmainlyfromtradereceivables.TheGroupextendscredittoitsclientsuponcarefulevaluationoftheclientsso astolimithighcreditconcentrationinaclientorclientsfromaparticularmarket.

(d) Liquidity risk

Liquidityriskrelatestotheabilitytomaintainsufficientliquidassetstomeetitsfinancialcommitmentsandobligationsasandwhentheyfalldue atareasonablecost.

LiquidityriskiscontrolledthroughtheCapitalAdequacyRequirementsofBursaMalaysiaandtheGroupliquidityriskmanagementpolicy.

(e) Cash flow risk

TheGroupreviewsitscashflowpositionregularlytomanageitsexposuretofluctuationsinfuturecashflowsassociatedwithitsmonetaryfinancial instruments.

(f) Price risk

The proprietary position of private debt securities and equities are subjected price risk. Such positions were marked-to-market daily and the price risk was controlled by investing in high quality stocks and highly rated PDS as well as cut-loss should the expected prices decline substantially.Forthoseinstrumentsheldtomaturity,adequateprovisionsweremadewhenthereispermanentdimunitioninvalue.



35. FINANCIAL INSTRUMENTS (continued)

(g) Fair value of financial assets and financial liabilities

ThecarryingamountsoffinancialassetsandliabilitiesoftheGroupandoftheCompanyatthebalancesheetdateapproximatedtheirfairvalues exceptforthefollowings:

Group Company Carrying Carrying amount Fair value amount Fair value Note RM’000 RM’000 RM’000 RM’000

2008 Financial Assets

Investmentinassociatedcompany

-quoted 15 43,280 21,459 - -

Amountsowingbysubsidiarycompanies 23 - - 60,070 *

Financial Liabilities

Amountsowingtosubsidiarycompanies 23 - - 102,799 *

2007 Financial Assets

Investmentproperties 12 1,020 1,386 - -

Investmentinassociatedcompany

-quoted 15 42,913 18,233 - -

-unquoted 15 3,476 4,417 3,918 4,417

Amountsowingbysubsidiarycompanies 23 - - 125,090 *

Financial Liabilities

Amountsowingtosubsidiarycompanies 23 - - 79,308 *

* Itisnotpracticablewithintheconstraintsoftimelinessandcosttoestimatethefairvalueoftheamountsowingfrom/tosubsidiarycompanies principallyduetothelackoffixedrepaymentterms.However,theGroupdoesnotanticipatethecarryingamountsrecordedatthebalancesheet datetobesignificantlydifferentfromthevaluesthatwouldeventuallybereceivedorsettled.



35. FINANCIAL INSTRUMENTS (continued)

(g) Fair value of financial assets and financial liabilities (continued)

Themethodsandassumptionsusedbymanagementtodeterminefairvaluesoffinancialinstrumentsotherthanthosewhosecarryingamounts reasonablyapproximatetheirfairvaluesareasfollows:

(i) Quoted investments (non-current assets)/Marketable securities/Inventories (unit trusts quoted in Malaysia)

Thefairvalueofthesefinancialassetsisdeterminedbyreferencetostockexchangequotedmarketpricesatthecloseofbusinessonthe balancesheetdate.

(ii) Unquoted investment / Loan and other receivables

Itisnotpracticaltoestimatethefairvalueofunquotedinvestments,loanreceivablesandotherreceivables.

(iii) Cash and cash equivalents, trade, loan and other receivables, trade and other payables, and current borrowings

Thecarryingamountsapproximatefairvaluebecauseoftheshortmaturityoftheseinstruments.

36. SEGMENTAL REPORTING

Business segments

TheGroupisorganisedintothefollowingoperatingdivisions:

(a) Financialserviceswhichincludestockbrokingactivities,investmentbankingactivities,assetmanagement,unittrustsmanagement,creditservices andcustodianservices;and

(b) Investmentholdingswhichincludeprovisionofmanagementservices,investmentinassociatedcompaniesandotherinvestments.

NogeographicalsegmentalinformationisprovidedastheGroupoperatesprincipallyinMalaysia.



36. SEGMENTAL REPORTING (continued) Financial Investment Group services holdings Eliminations Consolidated RM’000 RM’000 RM’000 RM’000 2008

Revenue 203,644 78,313 (76,905) 205,052

Results Segmentresults 87,624 68,677 (82,541) 73,760

Shareofprofitsofassociatedcompanies 3,255

Lossondisposalofinvestments (1,184)

Writebackofimpairmentlossoninvestments 9,211

Financecosts (2,399)

Profitbeforetax 82,643

Incometaxexpense 1,744

Netprofitfortheyear 84,387

Financial Investment services holdings Consolidated RM’000 RM’000 RM’000

2008 Assets Segmentassets 1,228,264 263,125 1,491,389Investmentinassociatedcompanies 43,280 - 43,280

Consolidatedtotalassets 1,534,669

Liabilities Segmentliabilities 513,145 84,501 597,646

Other Information Capitaladditions 2,039 1,594 3,633Depreciationof: -property,plantandequipment 5,702 512 6,214 -investmentproperties - 12 12



36. SEGMENTAL REPORTING (continued) Financial Investment Group services Holdings Eliminations Consolidated

RM’000 RM’000 RM’000 RM’000 2007

Revenue 142,934 19,725 (18,147) 144,512

Results Segmentresults 49,470 17,669 (18,147)48,992

Shareofprofitsofassociatedcompanies 6,074

Rationalisationexpenses (17,369)

Gainondisposalofinvestments 2,747

Impairmentlossoninvestments (18,642)

Financecosts (3,450)

Profitbeforetax 18,352

Incometaxexpense 1,806

Netprofitfortheyear 20,158

Financial Investment services holdings Consolidated RM’000 RM’000 RM’000 2007

Assets Segmentassets 1,848,549 25,915 1,874,464Investmentinassociatedcompanies 42,913 3,476 46,389

Consolidatedtotalassets 1,920,853

Liabilities Segmentliabilities 1,056,365 3,190 1,059,555

Other Information Capitaladditions 3,670 96 3,766Depreciationof: -property,plantandequipment 6,152 178 6,330 -investmentproperties - 21 21



37. SIGNIFICANT EVENTS

(a) On18December2006,theCompanyenteredintoaconditionalsharesaleagreementwithBankMuamalatMalaysiaBerhadforthedisposalofits entire40%equityinterestheldinanassociatedcompany,namelyMuamalatAvenueSdn.Bhd.forRM4.42million.Thesaiddisposalwascompleted on15March2007.

(b) TheCompanychangeditsnamefromECMLibraAvenueBerhadtoECMLibraFinancialGroupBerhadwitheffectfrom31January2008.

(c) ECMLibraAvenueSecuritiesBerhad,asubsidiaryoftheCompany,changeditsnametoECMLibraInvestmentBankBerhadwitheffectfrom31 January2008tofacilitatethetransformationfromaUniversalBrokertoanInvestmentBank.

38. EVENT SUBSEQUENT TO BALANCE SHEET DATE

Subsequenttothefinancialyearend,on6February2008,ECMLIBwasgrantedamerchantbanklicencebytheMinisterofFinancetoallowECMLIBtocarryonmerchantbankingbusiness.

39. COMPARATIVES

Certaincomparativefigureshavebeenreclassifiedtoconformwiththecurrentyear'spresentation.

As As Previously Restated Adjustment Reported RM’000 RM’000 RM’000

Group

Income Statements (Extract): Revenue 144,512 24,876 119,636

Gainondisposalofinvestmentincome 2,747 (13,780) 16,527

Otheroperatingincome 5,416 (11,096) 16,512

Balance sheet (Extract)

Note15-Investmentinassociatedcompanies

Quotedshares,outsideMalaysia Atfairvalue 18,233 (24,680) 42,913



39. COMPARATIVES (continued)

As As Previously Restated Adjustment Reported RM’000 RM’000 RM’000

Group

Balance sheet (Extract) (Continued)

Note19-Marketablesecurities

Unquotedprivatedebtsecurities Allowancefordiminutioninvalue (2,115) 2,021 (4,136)

Quotedshares Allowancefordiminutioninvalue (8,884) (2,021) (6,863)

(10,999) - (10,999)

Indicativemarketvalueof:

Unquotedprivatedebtsecurities 120,927 (16,484) 137,411Quotedshares 92,756 839 91,917

Note35-FinancialInstruments

(g) Fairvalueoffinancialassetsandfinancialliabilities

Quotedshares,outsideMalaysia Atfairvalue 18,233 (24,680) 42,913


other information

1. MATERIAL CONTRACT Therewerenomaterialcontracts(notbeingcontractenteredintointheordinarycourseofbusiness)whichhadbeenenteredintobytheCompany anditssubsidiariesinvolvingtheinterestofdirectorsandmajorshareholders,eitherstillsubsistingattheendofthefinancialyearorenteredintosince theendofthepreviousfinancialyearpursuanttoItem21,PartA,Appendix9CoftheListingRequirementsofBursaMalaysia.

2. NON-AUDIT FEES

Theamountofnon-auditfeespaidtoExternalAuditors,Messrs.Ernst&Young,bytheGroupforthefinancialyearamountedtoRM70,500.

3. ANALYSIS OF SHAREHOLDERS AS AT 15 APRIL 2008

Authorisedsharecapital : RM1,500,000,000.00

Issued&paid-upcapital : RM830,901,953.00

Classofshares : OrdinarySharesofRM1.00

Votingrights

- onshowofhands : 1vote

- onapoll : 1voteforeachshareheld

Distribution schedule of shareholdings:

Size of Holdings No. of Shareholders % No. of Shares %

Lessthan100 2,690 9.88 126,627 0.01

100-1,000 6,711 24.65 3,887,246 0.47

1,001-10,000 12,931 47.50 59,018,061 7.10

10,001-100,000 4,347 15.97 135,411,217 16.30

100,001-lessthan5%ofissuedshares 542 1.99 427,982,983 51.51

5%andaboveofissuedshares 2 0.01 204,475,819 24.61

27,223 100.00 830,901,953 100.00

Thirty Largest Shareholders:

Name of Shareholders No. of Shares %

1. EquityVisionSdnBhd 128,019,819 15.41

2. LimKianOnn 76,456,000 9.20


3. ANALYSIS OF SHAREHOLDERS AS AT 15 APRIL 2008 (continued)

Thirty Largest Shareholders (continued):


3. CitigroupNominees(Asing)SdnBhd 41,078,800 4.94 -exemptanforCitibankNA,Singapore(JuliusBaer)

4. ECMLNominees(Tempatan)SdnBhd 35,000,000 4.21 -ECMLibraCapitalMarketsSdnBhdforECMLibraHoldingsSdnBhd

5. HikkayaJayaSdnBhd 26,467,220 3.18

6. CIMBGroupNominees(Tempatan)SdnBhd 22,126,992 2.66 -AmcorpGroupBerhadforHikkayaJayaSdnBhd

7. Multi-PurposeHoldingsBerhad 17,223,484 2.07

8. SumberamaSdnBhd 16,926,400 2.04

9. CartabanNominees(Asing)SdnBhd 10,396,000 1.25 -exemptanforCaceisBankLuxembourg

10. LimSuTong@LimCheeTong 10,200,000 1.23

11. KenangaNominees(Tempatan)SdnBhd 8,200,400 0.99 -KenangaCapitalSdnBhdforBHBuildersSdnBhd

12. HSBCNominees(Asing)SdnBhd 7,796,872 0.94 -exemptanforCreditSuisse

13. CIMBGroupNominees(Tempatan)SdnBhd 6,880,972 0.83 -AmcorpGroupBerhadforMezzanineCapital(Malaysia)SdnBhd

14. CitigroupNominees(Asing)SdnBhd 6,644,300 0.80 -UBSAGSingaporeforYujiHoldingsLimited

15. Multi-PurposeInsuransBhd 6,618,000 0.80

16. CitigroupNominees(Asing)SdnBhd 6,220,730 0.75 -CBNYforDFAEmergingMarketsFund

17. CIMBGroupNominees(Tempatan)SdnBhd 6,059,100 0.73 -AmcorpGroupBerhadforCorporateviewSdnBhd

18. CitigroupNominees(Tempatan)SdnBhd 4,300,000 0.52 -PledgedSecuritiesAccountforGooiSeongHeen

19. HDMNominees(Tempatan)SdnBhd 3,900,000 0.47 -UOBKayHianPteLtdforGooiSeongLim

20. LooGeokEng 3,850,000 0.46

21. ChowSoiWah 3,849,300 0.46

other informationcontinued


3. ANALYSIS OF SHAREHOLDERS AS AT 15 APRIL 2008 (continued)

Thirty Largest Shareholders (continued):


22. GanSeongLiam 3,642,100 0.44

23. ABBNominee(Tempatan)SdnBhd 3,320,506 0.40 -AffinBankBerhad

24. SooNgikGee@SooYehJoo 3,176,100 0.38

25. HDMNominees(Tempatan)SdnBhd 3,100,000 0.37 -OCBCSecuritiesPteLtdforGooiSeongLim

26. PublicNominees(Tempatan)SdnBhd 3,000,000 0.36 -PledgedSecuritiesAccountforGooiSeongHeen

27. RHBNominees(Asing)SdnBhd 3,000,000 0.36 -OCBCSecuritiesPrivateLimitedforOCBCPBA/CPrimevestHoldingsPteLtd

28. CitigroupNominees(Tempatan)SdnBhd 2,932,400 0.35 -Uni.AsiaLifeAssuranceBerhad

29. CitigroupNominees(Asing)SdnBhd 2,398,877 0.29 -CBNYforDFAEmergingMarketsSmallCapSeries

30. ECMLNominees(Tempatan)SdnBhd 2,253,000 0.27 -ECMLibraFoundation

Substantial Shareholders: Direct Interest Deemed Interest Name of Shareholders No. of shares % No. of Shares %

MrLimKianOnn 76,456,000 9.20 - -

HikkayaJayaSdnBhd 48,594,212 5.85 - -

EquityVisionSdnBhd 128,019,819 15.41 - -

TanSriDato'AzmanHashim - - 189,554,103(1) 22.81

AmcorpGroupBerhad - - 61,534,284(2) 7.40 (formerlyknownasArab-MalaysianCorporationBerhad)

ClearGoalSdnBhd - - 61,534,284(2) 7.40

Note:

(1) Deemedinterestof22.81%byvirtueofSection6AoftheCompaniesAct,1965heldthroughHikkayaJayaSdnBhd(48,594,212),CorporateviewSdnBhd(6,059,100),MezzanineCapital (Malaysia)SdnBhd(6,880,972)andEquityVisionSdnBhd(128,019,819)

(2) Deemedinterestof7.4%byvirtueofSection6AoftheCompaniesAct,1965heldthroughHikkayaJayaSdnBhd(48,594,212),CorporateviewSdnBhd(6,059,100)andMezzanineCapital (Malaysia)SdnBhd(6,880,972)



4. DIRECTORS' INTERESTS AS AT 15 APRIL 2008:

Subsequent to the financialyearended31January2008, there isnochange to thedirectors' interests in thesharesof theCompanyand/or itsrelatedcorporations.

5. LIST OF PROPERTIES

Built up Age of Net Book Description/ Area Property Value Date of Location & Description Existing Use Tenure Sq. ft (years) RM’000 Acquisition

1. 111,JalanMacalister Land&office Freehold 28,201 11 6,555 27.08.1997 10400Penang premises

2. Unit6-01,Level06 Investment Freehold 1,285 14 175 24.12.2001 WismaPantaipremises property 12200Butterworth Penang

3. BlockC6,Unit64 Investment Freehold 3,373 12 438 24.12.2001 Parcel64-G,64-1,64-2 property No.2831Chinatown BandarBaruPrai Penang

4. BangunanAvenue Building Freehold 183,076 15 39,872 08.09.2004 8JalanDamansaraEndah DamansaraHeights 50490KualaLumpur

6. REVALUATION POLICY ON LANDED PROPERTIES TheGrouphasnotadoptedapolicyofregularrevaluationonlandedproperties.


I/We of

being a member/members of ECM Libra Financial Group Berhad (formerly

knownasECMLibraAvenueBerhad)herebyappoint

of

orfailinghim/her

of

orfailinghim/her,theChairmanofthemeetingasmy/ourproxy/proxiestovoteforme/usonmy/ourbehalfattheThirdAnnualGeneralMeetingoftheCompanytobeheldatAnggerikRoom,4thFloor,HotelEquatorial,JalanSultanIsmail,50250KualaLumpuronThursday,5June2008at10.00a.m.andatanyadjournmentthereof.

My/Ourproxy/proxiesistovoteeitheronshowofhandsoronapollasindicatedbelowwithan"X":

Datedthis_________dayof_________________2008

________________________________ ________________________________

Numberofsharesheld SignatureofMember(s)Notes

1. Ifyouwishtoappointotherperson(s)tobeyourproxy,deletethewords"theChairmanofthemeeting"andinsertthename(s)andaddress(es)oftheperson(s)desiredinthespacesoprovided.

2. Ifthereisnoindicationastohowyouwishyourvote(s)tobecast,theproxywillvoteorabstainathis/herdiscretion.

3. AproxymaybutneednotbeamemberoftheCompanyandtheprovisionsofSection149(1)(a)and(b)oftheCompaniesAct,1965shallnotapplytotheCompany.

4. Amembershallbeentitledtoappointnotmorethantwo(2)proxiestoattendandvoteatthesamemeetingprovidedthatwhereamemberoftheCompanyisanauthorisednomineeasdefinedundertheCentralDepositoriesAct,itmayappointatleastone(1)proxyinrespectofeachsecuritiesaccountitholdswithordinarysharesoftheCompanystandingtothecreditofthesaidsecuritiesaccount.Whereamemberappointsmorethanone(1)proxytoattendthesamemeeting,themembershallspecifytheproportionofhisshareholdingstoberepresentedbyeachproxy.

5. Inthecasewhereamemberisacorporation,thisFormofProxymustbeexecutedunderitsCommonSealorunderthehandofitsAttorney.

6. AllFormsofProxymustbedulyexecutedanddepositedattheRegisteredOfficeoftheCompanyat8AFloor,WismaGenting,JalanSultanIsmail,50250KualaLumpurnotlessthan48hoursbeforethetimeanddateforholdingthemeetingoradjournedmeeting.

RESOLUTIONS FOR AGAINST

1. Toreceivetheauditedfinancialstatementsandreports

2. Todeclareafinaldividendof3senlessincometaxof26%

3. ToapprovethepaymentofDirectors’fees

4. Tore-electthefollowingasDirectors:

4.1Dato’SeriKalimullahbinMasheerulHassan

4.2DatukKamarudinbinMdAli

4.3MrLumSingFai

5. Tore-appointMessrsErnst&YoungasAuditorsoftheCompanyandauthorisetheDirectors tofixtheirremuneration

6. ToapprovetheordinaryresolutionpursuanttoSection132DoftheCompaniesAct,1965

7. ToapprovetheProposedRenewalofShareBuy-BackAuthority

ECM Libra Financial Group Berhad (713570-K)(formerlyknownasECMLibraAvenueBerhad)

(IncorporatedinMalaysia)

FORM OF PROXY

AFFIXSTAMP

TheCompanySecretaryECM Libra Financial Group Berhad (713570-K)

8AFloor,WismaGenting,JalanSultanIsmail,50250KualaLumpur.

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