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Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Laporan Tahunan 2010 annuaL reporT

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Boasting an extensive nationwide branch network, Takaful Malaysia serves the needs of all Malaysians by offering insurance and financial solutions to secure every stage of life. From providing protection to growing your investment and savings, our dedicated personnel are ever ready to help you secure your future and provide you peace of mind. Dengan jaringan meluas di setiap pelusuk negara, Takaful Malaysia menyediakan keperluan kepada seluruh rakyat Malaysia melalui perlindungan insurans dan bertindak sebagai penyelesai kewangan untuk melindungi setiap fasa kehidupan anda. Bermula daripada menyediakan perlindungan sehinggalah membantu anda mencambahkan pelaburan dan simpanan, kami dengan penuh dedikasi dan sentiasa bersedia untuk memberi bantuan dan khidmat nasihat demi melindungi masa depan serta ketenangan fikiran anda.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Values

The defining pillars of the Takaful Malaysia brand are the values that we continuously strive to manifest through our work. · Inspiring · Integrity · Teamwork · Humanitarian · Professional

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Isi Kandungan

Contents

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Visi & Misi Vision & Mission notis Mesyuarat agung Tahunan ke 25 notice of 25th annual General Meeting notis Mesyuarat agung Tahunan ke 26 notice of 26th annual General Meeting penyata Mengiringi notis Mesyuarat agung Tahunan Kedua puluh Lima Statement accompanying notice of Twenty Fifth annual General Meeting penyata Mengiringi notis Mesyuarat agung Tahunan Kedua puluh enam Statement accompanying notice of Twenty Sixth annual General Meeting ringkasan Kewangan Lima Tahun Five Years Financial highlights

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Struktur Korporat Corporate Structure Maklumat Korporat Corporate Information ProfilLembagaPengarah BoardofDirectors'Profile ProfilBadanPenasihatSyariah ShariahAdvisoryBody'sProfile Jawatankuasa pengurusan Management Committee Laporan Jawatankuasa audit audit Committee report PenyataUrusTadbir Korporat Corporate Governance Statement Maklumat pematuhan Tambahan additional Compliance Information penyata Kawalan Dalaman Statement on Internal Control

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penyata pengerusi Chairman's Statement penyata Kewangan Financial Statements Maklumat hartanah particulars of properties Statistik pegangan Saham Shareholdings Statistics rangkaian Cawangan Branch network Borang proksi (notis Mesyuarat agung Tahunan ke 25) proxy Form (25th annual General Meeting) Borang proksi (notis Mesyuarat agung Tahunan ke 26) proxy Form (26th annual General Meeting)

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Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Visi & Misi

Vision & Mission

"Kami ingin menjadi pilihan utama insurans" Matlamat kami adalah untuk melangkaui jangkaan pelanggan melalui: · Kecemerlangan Operasi · Kebolehan Dalam Daya Saing Teknologi · Inovasi Produk · Budaya Kerja Berorientasikan Prestasi Dalam usaha meningkatkan nilai pemegang-pemegang saham

"We want to be the preferred choice for insurance" We aim to exceed customers' expectations through: · Operational Excellence · Technology Driven Capabilities · Product Innovation · Performance Oriented Culture Whilst delivering superior shareholders' value

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Inspiring

our perseverance to our continued development of ourindustry,bringingittothenextlevel.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notis Mesyuarat Agung Tahunan ke 25

Notice of 25th Annual General Meeting

DENGAN INI DIMAKLUMKAN bahawa MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD YANG KEDUA PULUH LIMA akan diadakan di Dewan ahmad MohamedIbrahim,Tingkat5,BlokAnnex,DataranKewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur pada hari Khamis, 5 Mei 2011, jam 9:30 pagi bagi tujuan-tujuanberikut: SEBAGAI URUSAN BIASA 1. Untuk menerima Penyata-penyata Kewangan Beraudit bagilapanbelas(18)bulantempohkewanganberakhir31 Disember2010,bersertalaporanPengarahdanJuruaudit berkaitandengannya. (resolusi 1) 2. Untuk meluluskan dividen akhir sebanyak 7% ditolak 25%cukaibagilapanbelas(18)bulantempohkewangan berakhir31Disember2010. (resolusi 2) 3. Untuk melantik semula Pengarah-pengarah berikut yang bersaramenurutTataurusanPersatuanSyarikat: artikel 62 3.1 EncikMahadzirAzizan 3.2 Y.Bhg.Dato'SulaimanMohdYusof artikel 66a 3.3 Y.Bhg.Dato'PadukaIsmeeIsmail 3.4 EncikZakariaIsmail (Resolusi5) (Resolusi6) (Resolusi3) (Resolusi4) NOTICE IS HEREBY GIVEN that the TWENTY FIFTH ANNUAL GENERAL MEETING of SYARIKAT TAKAFUL MALAYSIA BERHAD will be held at Dewan Ahmad Mohamed Ibrahim, 5th Floor, Annexe Block, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000KualaLumpuronThursday,5May2011,at9:30a.m. for the following purposes: AS ORDINARY BUSINESS 1. ToreceivetheAuditedFinancialStatementsforeighteen (18) months financial period ended 31 December 2010, together with the reports of the Directors and auditors thereon. (resolution 1) 2. Toapproveafinaldividendof7%less25%taxinrespect of the eighteen (18) months financial period ended 31 December2010. (resolution 2) 3. Tore-electthefollowingDirectors,eachofwhomretires pursuant to the Company's articles of association: article 62 3.1 EncikMahadzirAzizan 3.2 Y.Bhg.Dato'SulaimanMohdYusof article 66a 3.3 Y.Bhg.Dato'PadukaIsmeeIsmail 3.4 EncikZakariaIsmail (Resolution5) (Resolution6) (Resolution3) (Resolution4)

4. Untuk meluluskan bayaran yuran Pengarah-pengarah sebanyakRM721,000bagilapanbelas(18)bulantempoh kewanganberakhir31Disember2010. (Resolusi7)

4. To approve the payment of the Directors' fees of RM721,000 for eighteen (18) months financial period ended31December2010. (Resolution7)

5. UntukmeluluskanbayaranyuranAhli-ahliBadanPenasihat SyariahsebanyakRM153,000bagilapanbelas(18)bulan tempohkewanganberakhir31Disember2010. (resolusi 8)

5. To approve the payment of Shariah Advisory Body Members' fees of RM153,000 for eighteen (18) months financialperiodended31December2010. (resolution 8)

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Notis Mesyuarat Agung Tahunan ke 25

Notice of 25th Annual General Meeting

6. Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran Juruaudit. (resolusi 9) 7. Untuk melaksanakan sebarang urusan yang mana notis sewajarnyatelahdiberi. NOTIS PENERIMAAN DAN PEMBAYARAN DIVIDEN NOTIS DENGAN INI JUGA DIBERI BAHAWA dividen akhir sebanyak 7% ditolak 25% cukai bagi lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010, akan dibayar pada 27 Mei 2011 kepada para Pendeposit yang berdaftar di dalam rekod pendeposit pada penutupan perniagaan pada 9 Mei2011. NOTIS SETERUSNYA DENGAN INI JUGA DIBERI BAHAWA seorang pendeposit adalah layak untuk menerima dividen hanya dalam keadaan: (a) Saham yang telah dipindahkan ke dalam akaun Sekuriti Pendeposit sebelum 4:00 petang pada 9 Mei 2011 berhubungpindahan;dan (b) Saham yang dibeli di Bursa Malaysia Securities Berhad dengan asas kelayakan menurut peraturan Bursa Malaysia SecuritiesBerhad. 7. Totransactanyotherbusinessforwhichduenoticehas beengiven. NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT NOTICE IS ALSO HEREBY GIVEN THAT a final dividend of 7% less 25% tax in respect of the eighteen (18) months financial period ended 31 December 2010 will bepaidon27May2011toDepositorsregisteredinthe RecordofDepositorsatthecloseofbusinesson9May 2011. FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall qualify for entitlement to the dividend only in respect of: (a) Shares transferred into the Depositor's Securities account before 4:00 p.m. on 9 May 2011 in respect of transfers; and (b) SharesboughtontheBursaMalaysiaSecuritiesBerhadon acumentitlementbasisaccordingtotheRulesofBursa MalaysiaSecuritiesBerhad. 6. To re-appoint Messrs KPMG Desa Megat & Co. as the auditors of the Company and to authorise the Directors tofixtheirremuneration. (resolution 9)

AtasArahanLembagaPengarah MOHAMAD ASRI HAJI YUSOFF (MIA14171) Setiausaha Syarikat Kuala Lumpur 13 april 2011

By order of the Board MOHAMAD ASRI HAJI YUSOFF(MIA14171) Company Secretary Kuala Lumpur 13 april 2011

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notis Mesyuarat Agung Tahunan ke 25

Notice of 25th Annual General Meeting

Nota: (i) Syarikat telah menukar akhir tahun kewangan dari 30 Jun kepada 31 Disember dan pengumuman telah dibuat ke Bursa Malaysia Securities Berhad pada 29 Oktober 2009 berkaitan dengan penukaran akhir tahun kewangan. Seksyen 143 (1) Akta Syarikat, 1965 menyatakan bahawa Mesyuarat Agung Tahunan mesti diadakan sekali dalam setiap tahun kalendar. Suruhanjaya Syarikat Malaysia telah memberi kelulusan lanjutan masa sehingga 31 Mei 2011 untuk Syarikat mengadakan Mesyuarat Agung Tahunannya bagi tahun kalendar 2010. Syarikat tidak mengadakan apa-apa Mesyuarat Agung Tahunan dalam tahun kalendar 2010. Sehubungan dengan itu, Mesyuarat Agung Tahunan ke 25 akan datang akan diadakan untuk membentangkan Penyata Kewangan Beraudit 18 bulan yang bermula dari 1 Julai 2009 sehingga 31 Disember 2010 serta urusan-urusan biasa lain, dan Mesyuarat Agung Tahunan ini akan dianggap diadakan untuk tahun kalendar 2010. Notes: (i) The Company has changed its financial year end from 30 June to 31 December and an announcement has been made to Bursa Malaysia Securities Berhad on 29 October 2009 on the change of financial year end. Section 143 (1) of the Companies Act, 1965 states that an Annual General Meeting ("AGM") must be held once in every calendar year. The Companies Commission of Malaysia had granted its approval for an extension of time until 31 May 2011 for the Company to hold its AGM in respect of the calendar year 2010. The Company did not hold any AGM in the calendar year 2010. Hence, the forthcoming 25th AGM will be held to table the 18 months Audited Financial Statements made up from 1 July 2009 to 31 December 2010 as well as other ordinary businesses, and this AGM shall be deemed to be held for the calendar year 2010.

(ii) Seorangahliyangberhakhadiruntukmengundidalammesyuarat itulayakuntukmelantikseorangataubeberapaorangproksiuntuk hadir dan mengundi bagi pihaknya dan haruslah menyatakan bahagiansahamnyayangdiwakiliolehsetiapproksidanproksiitu tidaksemestinyaseorangahliSyarikat. (iii) Suratcarapelantikanproksibagiindividuhendaklahditandatangani oleh pelantik atau peguamnya dan dalam hal perbadanan, ia mestilah dimeterai atau ditandatangani oleh seorang pegawai ataupeguamnyayangtelahdiberikuasasewajarnya. (iv) SuratcarapelantikanseorangproksimestilahdihantarkePejabat Berdaftar Syarikat di Tingkat 26, Blok annex, Dataran Kewangan DarulTakaful,No.4,JalanSultanSulaiman,50000KualaLumpur, tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya.

(ii) Amemberentitledtoattendandvoteatthemeetingisentitledto appoint a proxy or proxies to attend and to vote instead of him and shallspecifytheproportionsofhisholdingstoberepresentedby eachproxyandaproxyneednotbeamemberoftheCompany. (iii) The instrument appointing a proxy in the case of an individual shallbesignedbytheappointerorhisattorneyandinthecaseof acorporation,mustbeundersealorunderthehandofanofficer orattorneydulyauthorised. (iv) The instrument appointing a proxy must be deposited at the Registered Office of the Company at Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000KualaLumpurnotlessthanforty-eight(48)hoursbefore thetimeforholdingthemeetingoranyadjournmentthereof.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Notis Mesyuarat Agung Tahunan ke 26

Notice of 26th Annual General Meeting

DENGAN INI DIMAKLUMKAN bahawa MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD YANG KEDUA PULUH ENAM akan diadakan di Dewan ahmad MohamedIbrahim,Tingkat5,BlokAnnex,DataranKewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur pada hari Khamis, 5 Mei 2011, dengan serta merta selepas berakhirnya atau penangguhan (mengikut yang mana berkaitan)MesyuaratAgungTahunanke25yangakandiadakan padajam9:30pagipadaharidanpadatempatyangsama,bagi tujuan-tujuanberikut:- SEBAGAI URUSAN BIASA 1. Untuk melantik semula Pengarah-pengarah berikut yang bersaramenurutArtikel62TataurusanPersatuanSyarikat: 1.1EncikJohanAbdullah 1.2 Y.Bhg.Dato'MohamedHassanMdKamil (resolusi 2) 2. Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarahuntukmenetapkanbayaranJuruaudit. (resolusi 3) SEBAGAI URUSAN KHAS AS SPECIAL BUSINESS 3. ResolusiBiasa­CadanganMandatPemegangSahambagi Urusniaga Pihak Berkaitan yang Berulang Berbentuk Hasil atau perdagangan dengan BIMB holdings Berhad dan subsidiari-subsidiarinya(`KumpulanBHB"). "BAHAWA,tertaklukkepadapematuhandenganKeperluan penyenaraian Bursa Malaysia Securities Berhad, akta Syarikat 1965, Tataurusan persatuan Syarikat dan semua undang-undang, peraturan dan garis panduan yang berkaitan, kelulusan dengan ini diberikan kepada Syarikat dansubsidiari-subsidiarinya("KumpulanTakafulMalaysia") untuk memeterai urusniaga pihak Berkaitan yang Berulang berbentukhasilatauperdagangandenganKumpulanBHB yangperlubagioperasiharianKumpulanTakafulMalaysia sepertiyangdinyatakandalamSeksyen2.3Pekelilingkepada ParaPemegangSahambertarikh13April2011("Pekeliling"), dengansyaratbahawa: (a)urusniaga tersebut adalah dalam urusan biasa perniagaan dan mengikut terma yang tidak lebih memihak kepada pihak berkaitan berbanding yang secara umumnya tersedia kepada orang ramai dan mengikut terma yang tidak menjejaskan para pemegang sahamminoritiSyarikat; 3. Ordinary Resolution ­ Proposed Shareholders' Mandate for recurrent related party Transactions of a revenue or Trading nature with BIMB holdings Berhad and its Subsidiaries("BHBGroup"). "THAT,subjecttocompliancewiththeListingRequirements of Bursa Malaysia Securities Berhad, Companies act 1965, Memorandum and articles of association of the Company and all other applicable laws, rules, regulations and guidelines,approvalbeandisherebygiventotheCompany anditssubsidiaries("TakafulMalaysiaGroup")toenterinto the recurrent related party Transactions of a revenue or trading nature with the BhB Group which are necessary for the day to day operations of the Takaful Malaysia Group as setoutinSection2.3oftheCirculartoShareholdersdated 13April2011("Circular"),providedthat: (a)thetransactionsareintheordinarycourseofbusiness andareontermswhicharenotmorefavourabletothe related parties than those generally available to the publicandontermsnottothedetrimentoftheminority shareholdersoftheCompany; 1.2 Y.Bhg.Dato'MohamedHassanMdKamil (resolution 2) (Resolusi1) 1.1 EncikJohanAbdullah (Resolution1) NOTICE IS HEREBY GIVEN that the TWENTY SIXTH ANNUAL GENERAL MEETING of SYARIKAT TAKAFUL MALAYSIA BERHAD will be held at Dewan Ahmad Mohamed Ibrahim, 5th Floor, Annexe Block, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur on Thursday, 5 May 2011, immediately following the conclusion or adjournment (as the case may be)ofthe25thAnnualGeneralMeetingwhichwillbeheld at9:30a.m.onthesamedayandatthesamevenue,for thefollowingpurposes:AS ORDINARY BUSINESS 1. To re-elect the following Directors, each of whom retires pursuant to article 62 of the Company's articles of association:

2. To re-appoint Messrs KPMG Desa Megat & Co. as the auditors of the Company and to authorise the Directors to fixtheirremuneration. (resolution 3)

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notis Mesyuarat Agung Tahunan ke 26

Notice of 26th Annual General Meeting

(b)urusniaga dilaksanakan secara tulus dan mengikut termakomersialbiasa;dan (c)penzahiranakandibuatdalamlaporantahunandengan pecahan nilai agregat urus niaga yang dijalankan menurutmandatpadatahunkewangan. DANBAHAWAkelulusantersebutakanbermulaserta-merta setelahresolusiinidiluluskandanakanterusberkuatkuasa sehingga: (a) tamat mesyuarat agung tahunan Syarikat yang akan datang,dimanamandattersebutakanluput,melainkan kuasatersebutdiperbaharuimelaluisaturesolusiyang diluluskandalammesyuarattersebut; (b)tamat tempoh di mana mesyuarat agung tahunan berikutnyaselepastarikhiadikehendakiuntukdiadakan menurut Seksyen 143(1) Akta Syarikat, 1965 ("AS") (tetapi tidak melebihi penangguhan seperti yang dibenarkanmenurutSeksyen143(2)AS);atau (c)dibatalkanataudipindamelaluiresolusiyangdiluluskan oleh pemegang saham dalam mesyuarat agung, yangmanalebihawal". (Resolusi4) (b) thetransactionsaremadeatarm'slengthandonnormal commercialterms;and (c) thedisclosurewillbemadeintheannualreportwiththe breakdownoftheaggregatevalueofthetransactions conductedpursuanttothemandateduringthefinancial year. anD ThaT such authority shall commence immediately uponthepassingofthisresolutionandshallcontinuetobe in force until: (a) the conclusion of the next annual general meeting of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is renewed; (b) theexpirationoftheperiodwithinwhichthenextannual generalmeetingafterthedatethatitisrequiredtobe heldpursuanttoSection143(1)oftheCompaniesAct, 1965("CA")(butshallnotextendtosuchextensionas maybeallowedpursuanttoSection143(2)ofCA);or (c) revoked or varied by resolution passed by the shareholders in a general meeting, whicheveristheearlier".

(Resolution4)

4. Untuk melaksanakan sebarang urusan yang mana notis sewajarnyatelahdiberi.

4. To transact any other business for which due notice has beengiven.

AtasArahanLembagaPengarah

By order of the Board

MOHAMAD ASRI HAJI YUSOFF(MIA14171) Setiausaha Syarikat Kuala Lumpur 13 april 2011

MOHAMAD ASRI HAJI YUSOFF(MIA14171) Company Secretary Kuala Lumpur 13 april 2011

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Notis Mesyuarat Agung Tahunan ke 26

Notice of 26th Annual General Meeting

Nota: 1. Seksyen 143(1) Akta Syarikat, 1965 menyatakan bahawa Mesyuarat Agung Tahunan mesti diadakan sekali dalam setiap tahun kalendar. Oleh itu, Mesyuarat Agung Tahunan ke 26 akan datang akan diadakan bagi tahun kalendar 2011. Tiada Penyata Kewangan Beraudit akan dibentangkan pada Mesyuarat Agung Tahunan kali ini. Penyata Kewangan Beraudit 18 bulan untuk tempoh kewangan berakhir 31 Disember 2010 akan dibentangkan pada Mesyuarat Agung Tahunan ke 25. Seorangahliyangberhakhadiruntukmengundidalammesyuarat itulayakuntukmelantikseorangataubeberapaorangproksiuntuk hadir dan mengundi bagi pihaknya dan haruslah menyatakan bahagiansahamnyayangdiwakiliolehsetiapproksidanproksiitu tidaksemestinyaseorangahliSyarikat. Suratcarapelantikanproksibagiindividuhendaklahditandatangani oleh pelantik atau peguamnya dan dalam hal perbadanan, ia mestilah dimeterai atau ditandatangani oleh seorang pegawai atau peguamnyayangtelahdiberikuasasewajarnya. Suratcara pelantikan seorang proksi mestilah dihantar ke Pejabat Berdaftar Syarikat di Tingkat 26, Blok annex, Dataran Kewangan DarulTakaful,No.4,JalanSultanSulaiman,50000KualaLumpur, tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya. Notes: 1. Section 143(1) of the Companies Act, 1965 states that an Annual General Meeting ("AGM") must be held once in every calendar year. Therefore, the forthcoming 26th AGM of the Company will be held in respect of the calendar year 2011. There will be no Audited Financial Statements tabled at this AGM. The 18 months Audited Financial Statements for the financial period ended 31 December 2010 will be tabled at the 25th AGM. Amemberentitledtoattendandvoteatthemeetingisentitledto appoint a proxy or proxies to attend and to vote instead of him and shallspecifytheproportionsofhisholdingstoberepresentedby eachproxyandaproxyneednotbeamemberoftheCompany. Theinstrumentappointingaproxyinthecaseofanindividualshall be signed by the appointer or his attorney and in the case of a corporation,mustbeundersealorunderthehandofanofficeror attorneydulyauthorised. The instrument appointing a proxy must be deposited at the Registered Office of the Company at Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur not less than forty-eight (48) hours before thetimeforholdingthemeetingoranyadjournmentthereof.

2. 2.

3.

3.

4.

4.

NOTA PENERANGAN KEPADA URUSNIAGA KHAS (1) Cadangan Mandat Pemegang Saham bagi Urusniaga Pihak Berkaitan yang Berulang Berbentuk Hasil atau Perdagangan Cadangan Resolusi No. 4, jika diluluskan, akan memberi kuasa kepada Syarikat untuk melaksanakan urusniaga pihak berkaitan yangberulangberbentukhasilatauperdaganganyangperlubagi operasi harian Kumpulan Takaful Malaysia dan akan menghapuskan keperluan untuk menjalankan mesyuarat agung yang berasingan dari masa ke semasa untuk mendapatkan kelulusan para pemegang saham.Butirancadanganmandatpemegangsahambagiurusniaga pihak berkaitan yang berulang berbentuk hasil atau perdagangan ada dinyatakan di dalam pekeliling kepada pemegang Saham bertarikh13April2011.

EXPLANATORY NOTE ON SPECIAL BUSINESS (1) Proposed Shareholders' Mandate for Recurrent Related Party Transaction of a Revenue or Trading Nature TheproposedResolutionNo.4,ifpassed,willempowertheCompany to conduct recurrent related party transactions of a revenue or trading in nature which are necessary for Takaful Malaysia Group's day to day operations and will eliminate the need to convene separate general meetings from time to time to seek shareholder' approval. The details on the proposed shareholders' mandate for recurrent related party transactions of a revenue or trading nature aresetoutintheCirculartoShareholdersdated13April2011.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Penyata Mengiringi Notis Mesyuarat Agung Tahunan Kedua Puluh Lima

mengikut Perenggan 8.27 (2) Keperluan Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad

TiadaindividuyangdilantiksebagaiPengarah(selaindaripadapengarahyangbersediauntukdilantiksemulaiaituEncikMahadzir Azizan,Y.Bhg.Dato'SulaimanMohdYusof,Y.Bhg.Dato'PadukaIsmeeIsmaildanEncikZakariaIsmail)dalamMesyuaratAgung TahunanSyarikatTakafulMalaysiaBerhadyangKeduaPuluhLimaakandatang.

Statement Accompanying Notice Of Twenty Fifth Annual General Meeting

pursuant to Paragraph 8.27 (2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad

ThereisnoindividualstandingforelectionasDirector(otherthandirectorsstandingforre-electioni.e.EncikMahadzirAzizan,Y. Bhg. Dato'SulaimanMohdYusof,Y.Bhg.Dato'PadukaIsmeeIsmailandEncikZakariaIsmail)atthisforthcoming Twenty Fifth AnnualGeneralMeetingofSyarikatTakafulMalaysiaBerhad.

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Penyata Mengiringi Notis Mesyuarat Agung Tahunan Kedua Puluh Enam

mengikut Perenggan 8.27 (2) Keperluan Penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad

Tiada individu yang dilantik sebagai Pengarah (selain daripada pengarah yang bersedia untuk dilantik semula iaitu Encik Johan AbdullahdanY.Bhg.Dato'MohamedHassanMdKamil)dalamMesyuaratAgungTahunanSyarikatTakafulMalaysiaBerhadyang KeduaPuluhEnamakandatang.

Statement Accompanying Notice Of Twenty Sixth Annual General Meeting

pursuant to Paragraph 8.27 (2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad

ThereisnoindividualstandingforelectionasDirector(otherthandirectorsstandingforre-electioni.e.EncikJohanAbdullahand Y.Bhg.Dato'MohamedHassanMdKamil)atthisforthcomingTwentySixthAnnualGeneralMeetingofSyarikatTakafulMalaysia Berhad.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Integrity

our commitment in values of personal integrity andtobuildtrust.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Ringkasan Kewangan Lima Tahun

Five Years Financial Highlights

JUMLAH KASAR SUMBANGAN TAKAFUL (RM '000)/ TOTAL GROSS TAKAFUL CONTRIBUTIONS (RM '000)

Takaful Keluarga/Family Takaful

Kumpulan/Group

2006 2007 2008 2009 2010

451,810

Syarikat/Company

2006 2007 2008 2009 2010

375,070

558,570

470,210

647,030

529,690

524,867

433,007

839,909

679,831

Takaful Am/General Takaful

Kumpulan/Group

2006 2007 2008 2009 2010

395,410

Syarikat/Company

2006 2007 2008 2009 2010

341,870

346,370

306,720

254,440

193,370

352,851

276,294

606,354

499,491

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

Kumpulan/Group

2006 2007 2008 2009 2010

3,164,690

Syarikat/Company

2006 2007 2008 2009 2010

2,983,340

3,481,540

3,291,290

4,047,300

3,796,260

4,372,235

4,118,880

4,944,451

4,619,679

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Ringkasan Kewangan Lima Tahun

Five Years Financial Highlights

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

Kumpulan/Group

2006 2007 2008 2009 2010

41,010

Syarikat/Company

2006 2007 2008 2009 2010

42,660 32,590

22,560

14,360

33,860

48,853

45,325

97,370

92,664

Pulangan atas Ekuiti (%)/ Return on Equity (%)

Dividen yang dibayar/dicadangkan (Ditolak Cukai) (RM '000)/ Dividend Paid/Proposed (Net of Taxation) (RM '000)

2006 2007 2008 2009 2010

12.6

2006 2007 2008 2009 2010

9,348

7.5

10.3

8,437

12.0

8,853

10.2

17,096

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Struktur Korporat

Corporate Structure

63.09%

42.73%

Syarikat-SyarikatSubsidiari/ SubsidiaryCompanies

57.24%

47.08%

52.67%

56.00%

P.T. SYARIKAT

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Maklumat Korporat

Corporate Information

LEMBAGA PENGARAH/BOARD OF DIRECTORS Pengerusi/Chairman Y.Bhg.Dato'PadukaIsmeeIsmail PengarahBukanEksekutifBukanBebas/ Non-IndependentNon-ExecutiveDirector (Dilantikpada16Disember2009/Appointedon16December2009) Ahli-ahli/Members Y.Bhg.Dato'MohamedHassanMd.Kamil pengarah urusan Kumpulan/Group Managing Director Y.A.M.TengkuAzmanIbniAlmarhumSultanAbuBakar, SSap, SIMp, DSap PengarahBukanEksekutifBebas/ IndependentNon-ExecutiveDirector (Bersarapada14Mei2010/Retiredon14May2010) PuanRozaidaOmar PengarahBukanEksekutifBukanBebas/ Non-IndependentNon-ExecutiveDirector EncikMahadzirAzizan PengarahBukanEksekutifBebas/ IndependentNon-ExecutiveDirector Y.Bhg.Dato'SulaimanMohdYusof PengarahBukanEksekutifBebas/ IndependentNon-ExecutiveDirector EncikJohanAbdullah PengarahBukanEksekutifBukanBebas/ Non-IndependentNon-ExecutiveDirector EncikZakariaIsmail PengarahBukanEksekutifBebas/ IndependentNon-ExecutiveDirector (Dilantik pada 15 Mei 2010/appointed on 15 May 2010) SETIAUSAHA/SECRETARY EncikMohamadAsriHj.Yusoff(MIA14171)

BADAN PENASIHAT SYARIAH/SHARIAH ADVISORY BODY Pengerusi/Chairman [email protected] Ahli-ahli/Members Y.Bhg.UstazMohd.BakirHj.Mansor Y.Bhg.DatukAbdulHamidSaid (Bersara pada 1 april 2011/retired on 1 april 2011) Y.Bhg.Dr.AidaOthman Y.Bhg.AssociateProfessorDrMuhamadRahimiOsman (Dilantik pada 12 Januari 2010/appointed on 12 January 2010) Setiausaha/Secretary EncikMohamadAsriHj.Yusoff

JAWATANKUASA AUDIT/AUDIT COMMITTEE EncikMahadzirAzizan pengerusi/Chairman Y.A.M.TengkuAzmanIbniAlmarhumSultanAbuBakar, SSap, SIMp, DSap (Bersarapada14Mei2010/Retiredon14May2010) PuanRozaidaOmar Y.Bhg.Dato'SulaimanMohdYusof EncikZakariaIsmail (Dilantik pada 15 Mei 2010/appointed on 15 May 2010)

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Maklumat Korporat

Corporate Information

JAWATANKUASA PEMILIHAN/NOMINATION COMMITTEE EncikZakariaIsmail pengerusi/Chairman Y.Bhg.Dato'MohamedHassanMd.Kamil PuanRozaidaOmar Y.Bhg.Dato'SulaimanMohdYusof EncikJohanAbdullah PuanAzianKassim KetuaPegawaiPelaburan/ChiefInvestmentOfficer EncikNazrulHishamAbdulHamid Ketua pegawai audit Dalaman/Chief Internal auditor EncikLeemWhyChong pengurus Besar, aktuari & aktuari Dilantik/ General Manager, actuarial & appointed actuary encik Mohd Suhaimi ahmad pengurus Besar, agensi runcit/ General Manager, retail agency PuanShuhaibahtulaslamiahHurmuzan PengurusBesar,SumberManusia/ General Manager, human resource EncikPatrickWongChangYang Ketua pegawai Informasi/ChiefInformationOfficer encik Mark anthony nathan pengurus Besar, perancangan Korporat & Bancatakaful/ General Manager, Corporate planning & Bancatakaful PENGURUSAN/MANAGEMENT Y.Bhg.Dato'MohamedHassanMd.Kamil pengarah urusan Kumpulan/Group Managing Director EncikLeeKokWah Ketua pegawai Kewangan/ChiefFinancialOfficer

JAWATANKUASA GANJARAN/REMUNERATION COMMITTEE EncikMahadzirAzizan pengerusi/Chairman Y.Bhg.Dato'MohamedHassanMd.Kamil EncikJohanAbdullah EncikZakariaIsmail

JAWATANKUASA PENGURUSAN RISIKO/ RISK MANAGEMENT COMMITTEE EncikZakariaIsmail pengerusi/Chairman EncikMahadzirAzizan Y.Bhg.Dato'MohamedHassanMd.Kamil EncikJohanAbdullah Y.Bhg.Dato'SulaimanMohdYusof

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Maklumat Korporat

Corporate Information

KETUA PEGAWAI EKSEKUTIF BAGI SYARIKAT SUBSIDIARI/ CHIEF EXECUTIVE OFFICER OF SUBSIDIARY COMPANIES EncikIzzuddinTajudin Ketua pegawai eksekutif, asean retakaful International (L) Ltd/ ChiefExecutiveOfficer,AseanRetakafulInternational(L)Ltd PENDAFTAR/REGISTRAR SymphonyShareRegistrarsSdnBhd(378993-D) Level 6, Symphony house pusat Dagangan Dana 1 JalanPJU1A/46 47301PetalingJaya Selangor Tel : +603-78418000 Fax : +603-78418151/52 Website: www.symphony.com.my

JURUAUDIT/AUDITORS KPMGDesaMegat&Co.(AF0759) Chartered accountants Level 10, KpMG Tower 8, First avenue Bandar utama 47800PetalingJaya Selangor Darul ehsan Tel : 603-77213388 Fax : 603-77213399

TEMPAT DITUBUHKAN DAN DOMISIL/ PLACE OF INCORPORATION AND DOMICILE Malaysia

PENYENARAIAN BURSA/BURSA LISTING PEJABAT BERDAFTAR/REGISTERED OFFICE Tingkat 26, Blok annex Dataran Kewangan Darul Takaful No.4,JalanSultanSulaiman 50000 Kuala Lumpur Tel : 603-22681984 Fax : 603-22742864 Email : [email protected] Website: takaful-malaysia.com.my pasaran utama/Main Market Bursa Malaysia Securities Berhad

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Teamwork

our dedication to teamwork is a testament of our unityandourtrusttowardseachother.

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Profil Lembaga Pengarah

Board of Directors' Profile

Y. Bhg. Dato' Paduka Ismee Ismail

Pengerusi/ Chairman

Y.Bhg.Dato'PadukaIsmeeIsmail,berusia46tahunadalah warganegara Malaysia dan telah dilantik sebagai Pengerusi Bukan Eksekutif Bukan Bebas Takaful Malaysia pada 16 Disember2009. Beliau adalah ahli fellow Chartered Institute of Management accountants (CIMa) dan ahli Institut akauntan Malaysia (MIA). Beliau kini merupakan pengarah urusan Kumpulan dan Ketua Pegawai Eksekutif Lembaga Tabung Haji. Sebelum itu, beliau merupakan Ketua Pegawai Eksekutif ECM Libra SecuritiesSdnBhddanPengarahECMLibraCapitalSdnBhd. Beliaujugapernahberkhidmatdenganbeberapaorganisasi dalam pelbagai kapasiti antaranya selaku Pengurus Besar Kanan Kewangan, Lembaga Tabung Haji; Ketua Akauntan di Pengurusan Danaharta Nasional Berhad; Pengurus Besar Pembangunan Perniagaan di Arab Malaysian Development Berhad dan beberapa jawatan berkaitan kewangan di Shell MalaysiaTradingSdnBhd.BeliaujugaadalahPengarahBIMB holdings Berhad, Bank Islam Malaysia Berhad, Th plantations Berhad, KFC Holdings (Malaysia) Berhad dan beberapa syarikatlain. Beliautidakmempunyaiperhubungankekeluargaandengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh sepuluh (10) tahun yang lalu dan telah menghadiri sepuluh (10) mesyuarat Lembaga Pengarah yang telah diadakan sepanjang lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010.

Y. Bhg. Dato' Paduka Ismee Ismail, aged 46, is a Malaysian citizen and was appointed to the Board on 16 December 2009 as a Non-Independent Non-Executive Chairman of TakafulMalaysia. HeisafellowmemberofCharteredInstituteofManagement Accountants(CIMA)andamemberoftheMalaysianInstitute ofAccountants(MIA). he is currently the Group Managing Director and Chief ExecutiveOfficerofLembagaTabungHaji.Priortothat,he wastheChiefExecutiveOfficerofECMLibraSecuritiesSdn BhdandaDirectorofECMLibraCapitalSdnBhd.Hehasalso served several organisations in various capacities including thatofSeniorGeneralManagerofFinance,LembagaTabung Haji; Chief Accountant at Pengurusan Danaharta Nasional Berhad;GeneralManagerofBusinessDevelopmentatArab MalaysianDevelopmentBerhadandhasheldseveralfinancerelated positions at Shell Malaysia Trading Sdn Bhd. He is also a Director of BIMB holdings Berhad, Bank Islam Malaysia Berhad, Th plantations Berhad, KFC holdings (Malaysia) Berhadandseveralothercompanies. he has no family relationship with any other directors/ major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended ten (10) Board of Director's meetings held during the eighteen (18)monthsfinancialperiodended31December2010.

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Profil Lembaga Pengarah

Board of Directors' Profile

Y. Bhg. Dato' Mohamed Hassan Md. Kamil

Pengarah Urusan Kumpulan/ Group Managing Director

Y.Bhg.Dato'MohamedHassanMd.Kamil,berusia48tahun, adalah warganegara Malaysia dan dilantik ke Lembaga PengarahTakafulMalaysiapada1September2006sebagai Pengarah Bukan Eksekutif Bukan Bebas. Beliau kini adalah PengarahUrusanKumpulanbagiTakafulMalaysiasejak1April 2007. Beliau juga merupakan ahli Jawatankuasa Ganjaran, Jawatankuasa pemilihan dan Jawatankuasa pengurusan Risiko.BeliaujugamerupakanPengerusiLembagaKomisaris P.T. Syarikat Takaful Indonesia dan P.T. Asuransi Takaful keluarga. Beliau merupakan graduan Sarjana Muda Sains dalam bidang Sains Aktuari dan Sarjana Pentadbiran Perniagaan dari University of Iowa, USA. Beliau juga adalah Fellow of the Society of actuaries, uSa, ahli american academy of ActuariesdanCharteredLifeUnderwriter. BeliautelahbekerjadiAmerikaSyarikatsebagaiAktuaridari tahun1987hingga1994sebelumpulangkeMalaysiasebagai TimbalanPengurusBesardiMalaysiaNationalInsurance.Pada tahun1996,beliaumenyertaiINGInsuranceBerhad(sebelum inidikenalisebagaiAetnaUniversalInsurance)sebagaiNaib PresidenKanandanKetuaAktuari.Padatahun2004,beliau menjadi Timbalan Pengurus Besar bagi P.T. AIA Indonesia. Beliau merupakan pengarah eksekutif BIMB holdings Berhad mulaiApril2006hinggaMac2007. Beliautidakmempunyaiperhubungankekeluargaandengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan denganapa-apakesalahandalamtempohsepuluh(10)tahun yang lalu dan telah menghadiri enam belas (16) mesyuarat Lembaga Pengarah yang telah diadakan sepanjang lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010.

Y. Bhg. Dato' Mohamed Hassan Md. Kamil, aged 48, is a MalaysiancitizenandwasappointedtotheBoardofTakaful Malaysia on 1 September 2006 as a Non-Independent Non-ExecutiveDirector.HeiscurrentlytheGroupManaging DirectorofTakafulMalaysiasince1April2007.Heisamember of the remuneration Committee, nomination Committee and RiskManagementCommittee.HeisalsotheChairmanofthe Board of Commissioners of P.T. Syarikat Takaful Indonesia andP.T.AsuransiTakafulKeluarga. he graduated with a Bachelor of Science degree in actuarial Science and Master in Business administration from the University of Iowa, USA. He is a Fellow of the Society of Actuaries, USA, a member of the American Academy of ActuariesandaCharteredLifeUnderwriter. He worked in the United States as an Actuary from 1987 to 1994 prior to returning to Malaysia as Deputy General Manager at Malaysia National Insurance. In 1996, he joined InG Insurance Berhad (previously known as aetna universal Insurance) as Senior Vice President and Chief Actuary. In 2004,hebecametheDeputyGeneralManagerforP.T.AIA Indonesia. He was an Executive Director of BIMB Holdings BerhadfromApril2006untilMarch2007. he has no family relationship with any other directors/major shareholdersofTakafulMalaysiaandhasnoconflictofinterest withTakafulMalaysia.Hehasnoconvictionforoffenceswithin the past ten (10) years and has attended sixteen (16) Board of Directors' meeting held during the eighteen (18) months financialperiodended31December2010.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Profil Lembaga Pengarah

Board of Directors' Profile

Puan Rozaida Omar

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

Puan Rozaida Omar, berusia 48 tahun, adalah warganegara MalaysiadantelahdilantiksebagaiPengarahBukanEksekutif Bukan Bebas Takaful Malaysia pada 15 Mei 2007. Beliau juga merupakan ahli Jawatankuasa audit dan Jawatankuasa Pemilihan. Beliau adalah akauntan Bertauliah (M) dan merupakan ahli Association of Chartered Certified Accountants (ACCA) UnitedKingdomsejaktahun1986. Beliau memulakan kerjayanya sebagai Akauntan Kewangan diFELDApadatahun1986.Padatahun1990,beliaumenjadi Pengurus Kredit di Citibank Berhad sehingga tahun 1991. Beliau kemudiannya menyertai Guthrie Trading Sdn Bhd pada tahun 1992 sebagai Pengurus Kewangan sehingga tahun1993.Selepasitu,beliaumenjadiPengarahKewangan di Glaxo SmithKline Consumer healthcare Sdn Bhd dari tahun 1994sehinggatahun2003.KinibeliauadalahKetuaPegawai Kewangan Kumpulan di Lembaga Tabung Haji sejak tahun 2004.BeliaujugamerupakanPengarahPelikanInternational CorporationBerhaddanBIMBHoldingsBerhad. Beliautidakmempunyaiperhubungankekeluargaandengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan denganapa-apakesalahandalamtempohsepuluh(10)tahun yang lalu dan telah menghadiri tujuh belas (17) mesyuarat Lembaga Pengarah yang telah diadakan sepanjang lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010.

Puan Rozaida Omar, aged 48, is a Malaysian citizen and is a Non-Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 May 2007. SheisalsoamemberoftheAuditCommitteeandNomination Committee. She is a Chartered Accountant (M) and a member of the Association of Chartered Certified Accountants (ACCA) UnitedKingdomsince1986. She started her career as a Financial accountant at FeLDa in 1986. In 1990, she became a Credit Manager at Citibank Berhaduntil1991.ShethenjoinedGuthrieTradingSdnBhdin 1992asaFinanceManageruntil1993.Afterthat,shebecame a Finance Director of Glaxo SmithKline Consumer healthcare Sdn Bhd from 1994 until 2003. She is currently the Group ChiefFinancialOfficerofLembagaTabungHajisince2004. She is also a Director of pelikan International Corporation BerhadandBIMBHoldingsBerhad. She has no family relationship with any other directors/major shareholdersofTakafulMalaysiaandhasnoconflictofinterest with Takaful Malaysia. She has no conviction for offences within the past ten (10) years and has attended seventeen (17)BoardofDirectors'meetingheldduringtheeighteen(18) monthsfinancialperiodended31December2010.

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Profil Lembaga Pengarah

Board of Directors' Profile

Encik Mahadzir Azizan

Pengarah Bukan Eksekutif Bebas/ Independent Non-Executive Director

EncikMahadzirAzizan,berusia62tahun,adalahwarganegara MalaysiadantelahdilantiksebagaiPengarahBukanEksekutif BebasTakafulMalaysiapada1September2007.Beliaujuga merupakan pengerusi Jawatankuasa audit dan Jawatankuasa Ganjaran dan ahli Jawatankuasa Pengurusan Risiko. Beliau juga merupakan ahli Lembaga Komisaris P. T. Asuransi TakafulKeluarga. BeliaumemperolehikelulusanBarrister-At-LawdariLincoln's Inn, London, united Kingdom dan diterima masuk ke english Barpadatahun1978. Beliau telah memegang pelbagai jawatan penting di dalam sektor awam dan swasta. Selepas tamat pengajian, beliau telah menyertai perkhidmatan perundangan dan Kehakiman KerajaanMalaysiasebagaiTimbalanPendakwarayaAwamdan Penasihat Undang-Undang. Beliau kemudiannya menyertai sektor swasta dan berkhidmat di Malaysian International Shipping Corporation ("MISC") dan Island & Peninsular Berhad, syarikat hartanah permodalan nasional Berhad ("PNB" ) selama 24 tahun. Semasa di sektor swasta, beliau jugatelahberkhidmatsebagaiAhliMajlisMARA,PengarahTH Properties Sdn Bhd dan juga sebagai Pengarah di pelbagai syarikatberkaitanKerajaan.Kini,beliaumerupakanPengarah ECM Libra Financial Group Berhad, ECM Libra Investment Bank Berhad, Avenue Invest Berhad dan beberapa syarikat lain. Beliautidakmempunyaiperhubungankekeluargaandengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan denganapa-apakesalahandalamtempohsepuluh(10)tahun yang lalu dan telah menghadiri enam belas (16) mesyuarat Lembaga Pengarah yang telah diadakan sepanjang lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010.

EncikMahadzirAzizan,aged62,isaMalaysiancitizenandis an Independent Non-Executive Director of Takaful Malaysia andwasappointedtotheBoardon1September2007.Heis also the Chairman of the audit Committee and remuneration CommitteeandamemberofRiskManagementCommittee. HeisalsoamemberoftheBoardofCommissionersofP.T. AsuransiTakafulKeluarga. He is a Barrister-At-Law from Lincoln's Inn, London, United KingdomandwascalledtotheEnglishBarin1978. Hehasheldkeypositionsbothinprivateandpublicsector. after graduation, he joined the Judicial and Legal Service of the Malaysian Government as a Deputy Public Prosecutor and Federal Counsel and subsequently ventured into the private sector and served Malaysian International Shipping Corporation ("MISC") and Island & Peninsular Berhad, the property arm of Permodalan Nasional Berhad ("PNB") for 24years.Whilstintheprivatesector,healsoservedasAhli Majlis Mara, Director of Th properties Sdn Bhd as well as variousotherdirectorshipsingovernmentlinkedcompanies. Currently,heisalsoaDirectorofECMLibraFinancialGroup Berhad, ECM Libra Investment Bank Berhad, Avenue Invest Berhadandseveralothercompanies. he has no family relationship with any other directors/major shareholdersofTakafulMalaysiaandhasnoconflictofinterest withTakafulMalaysia.Hehasnoconvictionforoffenceswithin the past ten (10) years and has attended sixteen (16) Board of Directors' meeting held during the eighteen (18) months financialperiodended31December2010.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Profil Lembaga Pengarah

Board of Directors' Profile

Y. Bhg. Dato ' Sulaiman Mohd Yusof

Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

Y.Bhg.Dato'SulaimanMohdYusof,berusia60tahun,adalah warganegara Malaysia dan telah dilantik sebagai Pengarah BukanEksekutifBebasTakafulMalaysiapada1Januari2008. Beliau merupakan ahli Jawatankuasa audit, Jawatankuasa PemilihandanJawatankuasaPengurusanRisiko.Beliaujuga merupakanPengerusiAseanRetakafulInternational(L)Ltd. Beliau memperolehi Ijazah Sarjana Muda Undang-undang (LLB) dari university of Buckingham, united Kingdom pada tahun1984danditerimamasukkeMalaysianBarpadatahun 1986. Beliau memulakan kerjayanya sebagai Pelatih Wartawan Kadet dengan Agensi Berita Bernama pada tahun 1969. Seterusnyapadatahunyangsama,beliaumenyertaiPolisDi RajaMalaysia.BeliaumenjawatpelbagaijawatandalamPolis Di Raja Malaysia seperti Timbalan Superitendan Personel, Setiausaha yang bertanggungjawab kepada Ketua Polis negara,Tun haniff omar, pegawai polis Daerah Sentul, alor Setar dan Sungai petani dan penolong pesuruhjaya Penyelidikan dan Perancangan di Bukit Aman. Pada tahun 2002, beliau menjadi Timbalan Pengarah Pengurusan (Disiplin), Timbalan Pengarah Jabatan Narkotik pada tahun 2003, Ketua Polis Negeri Sembilan pada tahun 2004, Timbalan Pengarah, Jabatan Siasatan Jenayah Komersial pada tahun 2005 dan sebagai Ketua Polis Kuala Lumpur padatahun2006sehinggapersaraanbeliau.PadabulanApril 2007,beliaumembukasyarikatguamannyasendiri,Sulaiman & Saif. Beliau juga merupakan Pengarah AWC Berhad dan beberapasyarikatsendirianberhadyanglain. Beliautidakmempunyaiperhubungankekeluargaandengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan denganapa-apakesalahandalamtempohsepuluhtahun(10) yang lalu dan telah menghadiri enam belas (16) mesyuarat Lembaga Pengarah yang telah diadakan sepanjang lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010.

Y.Bhg.Dato'SulaimanMohdYusof,aged60,isaMalaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 1 January 2008.HeisamemberoftheAuditCommittee,Nomination CommitteeandRiskManagementCommittee.Heisalsothe ChairmanofAseanRetakafulInternational(L)Ltd. he graduated with a Bachelor of Law (LLB) degree from the UniversityofBuckingham,UnitedKingdomin1984andwas calledtotheMalaysianBarin1986. he started his career as a Cadet reporter Trainee with Bernama News Agency in 1969. Later in the same year, he joined Royal Malaysia Police. He assumed various positions at the royal Malaysia police such as Deputy Superintendent of Personnel, Secretary responsible for the IGP, Tun Haniff Omar, Police Officer for District of Sentul, Alor Setar and Sungai petani and assistant Commissioner with research andPlanningatBukitAman.In2002,hebecametheDeputy Director Management (Discipline), in 2003 as Deputy Director Narkotics Department, in 2004 as the Chief Police Officer Negeri Sembilan, in 2005 as Deputy Director Commercial Crime Investigation Department and in 2006 as Chief police OfficerofKualaLumpuruntilhisretirement.InApril2007,he startedhisownlegalfirm,Sulaiman&Saif.HeisalsoaDirector ofAWCBerhadandotherprivatelimitedcompanies. he has no family relationship with any other directors/major shareholdersofTakafulMalaysiaandhasnoconflictofinterest withTakafulMalaysia.Hehasnoconvictionforoffenceswithin the past ten (10) years and has attended sixteen (16) Board of Director's meeting held during the eighteen (18) months financialperiodended31December2010.

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Profil Lembaga Pengarah

Board of Directors' Profile

Encik Johan Abdulah

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

EncikJohanAbdullah,berusia54tahun,adalahwarganegara Malaysia dan merupakan pengarah Bukan eksekutif Bukan Bebas Takaful Malaysia dan telah dilantik pada 15 Ogos 2008. Beliau juga merupakan ahli Jawatankuasa Pemilihan, Jawatankuasa pengurusan risiko dan Jawatankuasa Ganjaran. Beliau memperolehi Diploma Perbankan dari Universiti TeknologiMARA,ShahAlampadatahun1983,IjazahSarjana Muda Pentadbiran Perniagaan (Kewangan) dari Eastern Michigan university, Michigan, uSa pada tahun 1985 dan Ijazah Sarjana Pentadbiran Perniagaan (Kewangan) dari MoreheadStateUniversity,Kentucky,USApadatahun1986. Beliau memulakan kerjaya profesionalnya pada tahun 1987 di Kuala Lumpur Stock exchange (sekarang ini dikenali sebagai Bursa MalaysiaSecuritiesBerhad)sebagaiPegawai Penyenaraian. Pada tahun 1989, beliau menyertai bahagian Kewangan Korporat di Bumiputra Merchant Bankers Berhad danmeletakjawatanpadaawaltahun1995sebagaiPengurus Kanan. Beliau kemudiannya menyertai Damansara Realty Berhad sebagai Pengurus Besar, Perancangan Korporat. Seterusnyapadatahun1999,beliaumenyertaisemulaBursa Malaysia Securities Berhad dan telah memegang pelbagai jawatan kanan termasuk Deputy Chief Regulatory Officer, Group Regulation. Pada bulan Mei 2008, beliau menyertai BIMB Holdings Berhad ("BHB") sebagai Pengarah Urusan Kumpulan/Ketua Pegawai Eksekutif. Beliau juga merupakan PengarahBankIslamMalaysiaBerhaddananak-anaksyarikat didalamkumpulanBHB. Beliautidakmempunyaiperhubungankekeluargaandengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan denganapa-apakesalahandalamtempohsepuluhtahun(10) yang lalu dan telah menghadiri enam belas (16) mesyuarat Lembaga Pengarah yang telah diadakan sepanjang lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010.

EncikJohanAbdullah,aged54,isaMalaysiancitizenandisa Non-IndependentNon-ExecutiveDirectorofTakafulMalaysia andwasappointedtotheBoardon15August2008.Heisalso amemberoftheNominationCommittee,RiskManagement CommitteeandRemunerationCommittee. He obtained a Diploma in Banking from University Technology Mara, Shah alam in 1983, a Bachelor of Business administration (Finance) from eastern Michigan university, Michigan, uSa in 1985 and a Master in Business administration (Finance) from Morehead State university, Kentucky, uSa in 1986. Hestartedhisprofessionalcareerin1987withKualaLumpur Stock exchange (currently known as Bursa Malaysia Securities Berhad) as Listing Officer. In 1989, he joined Corporate Finance division of Bumiputra Merchant Bankers Berhad and leftthebankinearly1995asSeniorManager.Laterhejoined Damansara realty Berhad as General Manager, Corporate Planning. Subsequently in the year 1999, he re-joined Bursa Malaysia Securities Berhad and took up various senior positionsincludingthatofDeputyChiefRegulatoryOfficer, Group Regulation. In May 2008, he joined BIMB Holdings Berhad("BHB")asGroupManagingDirector/ChiefExecutive Officer. He is also a director of Bank Islam Malaysia Berhad andothersubsidiarieswithinBHBGroup. he has no family relationship with any other directors/major shareholdersofTakafulMalaysiaandhasnoconflictofinterest withTakafulMalaysia.Hehasnoconvictionforoffenceswithin the past ten (10) years and has attended sixteen (16) Board of Director's meeting held during the eighteen (18) months financialperiodended31December2010.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Profil Lembaga Pengarah

Board of Directors' Profile

Encik Zakaria Ismail

Pengarah Bukan Eksekutif Bebas / Independent Non-Executive Director

Encik Zakaria Ismail, berusia 59 tahun, adalah warganegara Malaysia dan merupakan Pengarah Bukan Eksekutif Bebas Takaful Malaysia dan telah dilantik pada 15 Mei 2010. Beliau merupakan pengerusi Jawatankuasa pemilihan dan Jawatankuasa pengurusan risiko dan ahli Jawatankuasa audit danJawatankuasaGanjaran. BeliaumemperolehiIjazahSarjanaMudaEkonomi(Kepujian) dariUniversitiMalayapadatahun1974danSarjanaPentadbiran perniagaan dan Sarjana Sastera dalam ekonomi dari universiti Boston,AmerikaSyarikat,masing-masingpadatahun1981dan 1983. Beliau juga merupakan ahli bersekutu The Institute of Bankers,London. Beliau memulakan kerjayanya di Bank negara Malaysia pada tahun1974danmemegangpelbagaijawatansepertiEksekutif Kanan, Penyeliaan Perbankan; Setiausaha Sulit, Pejabat Gabenor, ksekutif anan, konomi; enolong epada engarah E K E P k P Eksekutif, South East Asia Group IMF, di Washington, D.C Amerika Syarikat; Pengurus, Ekonomi; Pengurus, Penyeliaan Perbankan,TimbalanPengarah,Pelaburan;TimbalanPengarah, Penyeliaan Perbankan; Pengarah, Penyeliaan Perbankan; pengarah, penyeliaan Insurans dan pengarah, pengawalan Insurans.BeliaumerupakanPengarahUrusandiEntrepreneurs Rehabilitation Fund pada tahun 2002 sehingga 2004 dan merupakan Pengarah Latihan dan Pentadbiran di The South east asian Central Banks research and Training Centre pada tahun 2004 sehingga persaraan beliau pada tahun 2007. Beliau juga merupakan ahli Lembaga Pengarah di Malaysian Insurance Institute (MII) dan ahli EXCO MII dari tahun 2000 sehingga2002.Kini,beliaumerupakanahlilembagaPengarah Export-ImportBankofMalaysiaBerhad. Beliau tidak mempunyai perhubungan kekeluargaan dengan mana-mana pengarah/pemegang saham utama Takaful Malaysia dan tidak mempunyai percanggahan kepentingan dengan Takaful Malaysia. Beliau tidak pernah disabitkan denganapa-apakesalahandalamtempohsepuluhtahun(10) yanglaludantelahmenghadirienam(6)mesyuaratLembaga Pengarah yang telah diadakan sepanjang lapan belas (18) bulantempohkewanganberakhir31Disember2010.

Encik Zakaria Ismail, aged 59, is a Malaysian citizen and is an Independent Non-Executive Director of Takaful Malaysia and was appointed to the Board on 15 May 2010. he is the Chairman of the nomination Committee and risk ManagementCommitteeandamemberofAuditCommittee andRemunerationCommittee. He obtained his Bachelor of Economics (Honours) from the University of Malaya in 1974, and Master in Business administration and Master of arts in economics from Boston University, USA in 1981 and 1983 respectively. He is also an associateofTheInstituteofBankers,London. he started his career with Bank negara Malaysia (BnM) in 1974andassumedvariouspositionssuchasSeniorExecutive, BankingSupervision;PrivateSecretary,OfficeoftheGovernor; Senior Executive, Economics; Assistant to the Executive Director,SouthEastAsiaGroupIMF,inWashington,D.C.USA; Manager,Economics;Manager,BankingSupervision;Deputy Director, Investment; Deputy Director, Banking Supervision; Director,BankingSupervision;Director,InsuranceSupervision andDirector,InsuranceRegulation.Hewassecondedtothe Entrepreneurs Rehabilitation Fund as its Managing Director in 2002 until 2004 and then was seconded to The South east asian Central Banks research and Training Centre as its Director of Training and Administration from 2004 until hisretirementin2007.HewasalsoaBoardmemberofthe MalaysianInsuranceInstitute(MII)andmemberoftheEXCO of MII from 2000 until 2002. Currently, he is also a Board memberofExport-ImportBankofMalaysiaBerhad. he has no family relationship with any other directors/ major shareholders of Takaful Malaysia and has no conflict of interest with Takaful Malaysia. He has no conviction for offences within the past ten (10) years and has attended six (6) Board of Director's meeting held during the eighteen (18) monthsfinancialperiodended31December2010.

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Profil Badan Penasihat Syariah

Shariah Advisory Body's Profile

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon

[email protected], adalah warganegara Malaysia dan merupakan pengerusi Badan penasihat Syariah (BpS) Takaful Malaysia yang telah dilantik pada1Julai1985. Beliau memperolehi Ijazah Sarjana Muda Sastera dalam Syariah, dari Universiti Al­Azhar, Mesir pada tahun 1970, SarjanaSasteradalamPengajianAntarabangsadariUniversiti Fairleigh Dickenson, Amerika Syarikat pada tahun 1973 dan kemudian melanjutkan pengajian di peringkat Ijazah Doktor Falsafah dalam Sejarah di universiti newYork, amerika Syarikat padatahun1979. Beliau memulakan kerjayanya pada tahun 1978 sebagai Pensyarah di Jabatan Syariah, Fakulti Pengajian Islam, Universiti Kebangsaan Malaysia (UKM) sebelum dipinjamkan ke Universiti Islam Antarabangsa (UIAM) dari tahun 1983 hingga 1984. Semasa di UKM, beliau telah dilantik sebagai PenyelarasbagiPendidikanUmumdaritahun1981hingga1982. Padatahun1982,beliauberkhidmatsebagaiPemangkuKetua JabatanSyariah.BeliaujugamerupakanPenyelarasProgram Diploma dan Sijil Pengajian Islam UKM sehingga tahun 1983. Beliau kembali ke UKM pada tahun 1984 sebagai Pensyarah di Jabatan Syariah sehingga tahun 1985. Kemudian beliau menjadi pengarah eksekutif pusat rawatan Islam (MaIS) dari tahun 1996 hingga 1999. Kini, beliau merupakan Pengerusi PusrawiCorporationSdnBhd. Beliau telah menghasilkan tulisan dalam bidang pendidikan, ekonomi,perbankanIslamdanperundanganIslamsebanyak12 buahbuku,7jilidterjemahan,300skriptvdan40kertaskerja. Beliau juga dianugerahkan sebagai `Tokoh Ulamak Bestari NegeriSelangor'padatahun2000,`TokohMa'alHijrahNegeri Selangor' pada tahun 2001 dan ahli Majlis agama Islam negeri Selangorselama21tahun.

Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon, aged 68, is a MalaysiancitizenandistheChairmanoftheShariahAdvisory Body (SaB) of Takaful Malaysia who was appointed on 1 July 1985. he graduated with a Bachelor of arts degree in Shariah from theUniversityofAl-Azhar,Egyptin1970,aMasterofArtsin International Studies from Fairleigh Dickenson university, uSa in1973andaDoctorofPhilosophyinHistoryfromNewYork University,USAin1979. He started his career in 1978 as a Lecturer at the Shariah Department,FacultyofIslamicStudies,UniversitiKebangsaan Malaysia (uKM) prior to his secondment to the International Islamic University Malaysia (IIUM) from 1983 to 1984. Whilst with uKM, he was appointed as the Coordinator for the General Teachingsfrom1981to1982.In1982,heservedastheActing HeadoftheShariahDepartment.HewasalsotheProgramme CoordinatorforDiplomaandCertificateinIslamicStudiesof UKMuntil1983.HereturnedtoUKMin1984asaLecturerinthe ShariahDepartmentuntil1985.HethenbecameanExecutive DirectorofPusatRawatanIslam(MAIS)from1996to1999.At present,heistheChairmanofPusrawiCorporationSdnBhd. he has produced writings in educational, economy, Islamic banking and Islamic law, a total of 12 books, 7 translation bindery, 300 tv scripts and 40 paper works. He was also awarded `Tokoh Ulamak Bestari Negeri Selangor' in 2000, `TokohMa'alHijrahNegeriSelangor'in2001andamemberof ReligiousCouncilofSelangorStatefor21years.

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Profil Badan Penasihat Syariah

Shariah Advisory Body's Profile

Y. Bhg. Ustaz Mohd Bakir Hj. Mansor

Y.Bhg.UstazMohdBakirHj.Mansor,berusia74tahun,adalah warganegara Malaysia dan merupakan ahli Badan penasihat Syariah (BpS) Takaful Malaysia yang telah dilantik pada 1 Julai 2002. Beliau memperolehi Shahadah ulya (Sijil Tertinggi) dari Kolej IslamMalayapadatahun1967. Beliau telah memulakan kerjayanya sebagai guru sementara di Madrasah Mashhoor Islamiyah, pulau pinang dari tahun 1967 hingga 1970. Beliau kemudiannya berkhidmat sebagai Pegawai Penerangan sementara di Majlis Kebangsaan Hal Ehwal Agama Islam Malaysia mulai tahun 1971 hingga 1973; sebagaiPegawaiHalEhwalIslamdiBahagianHalEhwalIslam, JabatanPerdanaMenteridaritahun1973hingga1977;sebagai PegawaiPerancanganPendidikanUgamadiJabatanKemajuan Masyarakat, Kementerian Pertanian dari tahun 1978 hingga 1980; sebagai Penolong Pengarah Dokumentasi di Bahagian Hal Ehwal Islam, Jabatan Perdana Menteri mulai tahun 1980 hingga 1981 dan sebagai seorang Ketua Penolong Pengarah Pusat Penyelidikan Islam dari tahun 1981 hingga 1984. Beliau kemudiannyaberkhidmatdenganBankIslamMalaysiaBerhad sebagai Koordinator Syariah merangkap Setiausaha Majlis PengawasanSyariahuntukBank-bankdaritahun1984hingga 2001. Beliau pernah berkhidmat sebagai Internal Research FellowforCentreofFiqhMuamalatdiInstitutPerbankandan Kewangan Islam Malaysia (IBFIM) dari 2 Januari 2001 hingga 30Jun2009. Beliau kini merupakan Distinguished Shariah advisor for Centre of Fiqh Muamalat berkuatkuasa dari 1 Julai 2009. Beliau juga adalah ahli Majlis pengawasan Syariah Bank Islam Malaysia Berhad, ahli Jawatankuasa panel Syariah amanah Ikhtiar Malaysia, pengerusi Jawatankuasa penasihat Syariah BIMB Securities Sdn Bhd, pengerusi Jawatankuasa penasihat Syariah Persatuan Institusi Perbankan Islam Malaysia dan Pengerusi Jawatankuasa Penasihat Syariah Kumpulan Wang SimpananPekerja.SebelumdilantiksebagaiahliBPSTakaful Malaysia pada 1 Julai 2002, beliau adalah Setiausaha BPS TakafulMalaysiasejakiaditubuhkanpadatahun1985hingga Disember2001.

Y.Bhg.UstazMohdBakirHj.Mansor,aged74,isaMalaysian citizenandisamemberoftheShariahAdvisoryBody(SAB)of TakafulMalaysiawhowasappointedon1July2002. He obtained the Shahadah Ulya (Highest Certificate) from KolejIslamMalayain1967. he started his career as a temporary teacher at Madrasah MashhoorIslamiyah,PulauPinangfrom1967to1970.Hethen served as a temporary Information Officer at the National CouncilforIslamicReligiousAffairsMalaysiafrom1971to1973; asanIslamicAffairsOfficerattheIslamicAffairsDivision,the PrimeMinister'sDepartmentfrom1973to1977;astheReligious Education Planning Officer at Development Community Department, Ministry of Agriculture from 1978 to 1980; as an assistant Documentation Director at the Islamic affairs Division, the prime Minister's Department from 1980 to 1981 and as a Chief assistant Director of Islamic research Centre from 1981 to 1984. He then served at Bank Islam Malaysia Berhad as Shariah Coordinator cum Secretary to the Bank's Shariah Supervisory Council from 1984 to 2001. He was previously an Internal research Fellow for Centre of Fiqh Muamalat at Islamic Banking and Finance Institute Malaysia (IBFIM) from 2 January2001until30June2009. he is currently a Distinguished Shariah advisor for Centre of Fiqh Muamalat effective from 1 July 2009. He is also a member of the Shariah Supervisory Council of Bank Islam Malaysia Berhad, a member of the Shariah Panel of Amanah Ikhtiar Malaysia, the Chairman of Shariah advisory Committee of BIMB Securities Sdn Bhd, the Chairman of the Shariah advisory Committee of the association of Islamic Banking Institutions Malaysia and the Chairman of the Shariah advisory Committee of the Employees Provident Fund. Before being appointedasamemberofSABofTakafulMalaysiaon1July 2002, he was the Secretary of SaB of Takaful Malaysia since its inceptionin1985toDecember2001.

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Profil Badan Penasihat Syariah

Shariah Advisory Body's Profile

Y. Bhg. Dr. Aida Othman

Y.Bhg.Dr.AidaOthmanberusia41tahun,adalahwarganegara Malaysia dan merupakan ahli Badan penasihat Syariah (BpS) TakafulMalaysiayangtelahdilantikpada6Mac2008. Beliau memperolehi Ijazah Sarjana Muda Undang-undang (LL.B) dari Universiti Islam Antarabangsa pada tahun 1992 danIjazahSarjanaMudaUndang-undang(LL.BSyariah)pada tahun 1993. Pada tahun 1995, beliau memperolehi Sarjana Undang-undang (LL.M) dari Universiti Cambridge, England danpadatahun2005beliaumemperolehiDoktorFalsafahdari UniversitiHarvard,AmerikaSyarikat.Beliaujugamemperolehi postDoctorate Fellowship dari universiti harvard pada tahun 2006. BeliaumemulakankerjayanyadenganTetuanZain&Co.pada tahun1993sebagaiPenolongPegawaiUndangUndang.Pada tahun 1995, beliau menyertai Universiti Islam Antarabangsa sebagai Pensyarah. Kemudian beliau menjadi Penyelidik di UnitedNationsdaritahun1998hingga1999.Padatahun2002, beliau berkhidmat di Universiti Harvard sebagai Teaching Fellow sehingga tahun 2003 dan postDoctorate Fellow dan TeachingAssistantdaritahun2005hingga2006. Beliau kini merupakan Rakan kongsi di firma guaman Zaid Ibrahim&Co.danjugasebagaiPengarahdiZIShariahAdvisory SdnBhd.

Y. Bhg. Dr. Aida Othman aged 41, is a Malaysian citizen and is a member of the Shariah Advisory Body (SAB) of Takaful Malaysiawhowasappointedon6March2008. She graduated from the International Islamic university MalaysiawithaBachelorofLaw(LL.B)degreein1992anda Bachelor of Law (LL.B Shariah) degree in 1993. In 1995, she obtainedMasterinLaw(LL.M)fromtheCambridgeUniversity, Englandandin2005,sheobtainedaDoctorofPhilosophyfrom theHarvardUniversity,USA.ShealsoobtainedPostDoctorate FellowshipfromtheHarvardUniversityin2006. She started her career with Messrs. Zain & Co. in 1993 as AssistantLegalOfficer.In1995,shejoinedInternationalIslamic University Malaysia as a Lecturer. After that, she became a Researcher at United Nations from 1998 until 1999. In 2002, she joined the harvard university as Teaching Fellow until 2003 and postDoctorate Fellow and Teaching assistant from 2005until2006. CurrentlysheisaPartneratthelawfirm,ZaidIbrahim&Co.as wellasaDirectoratZIShariahAdvisorySdnBhd.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Profil Badan Penasihat Syariah

Shariah Advisory Body's Profile

Y. Bhg. Prof Madya Dr. Muhamad Rahimi Osman

Y. Bhg. Prof Madya Dr Muhamad Rahimi Osman, berusia 49 tahun, adalah warga negara Malaysia dan merupakan ahli Badan penasihat Syariah (BpS) Takaful Malaysia yang telah dilantikpada12Januari2010. BerkelulusanIjazahSarjanaMudaShari'ah(Hons)dariUniversiti Malayapadatahun1987,IjazahSarjanadalamEkonomiIslam dari Yarmouk university, Jordan dan Doktor Falsafah (phD) dalam Perbankan Islam dari Universiti Islam Antarabangsa Malaysia masing-masing pada tahun 1996 dan 2007. Pada masa ini memegang jawatan pengarah, pusat pemikiran dan Kefahaman Islam (CITu), universiti Teknologi Mara (uiTM), ShahAlam. Beliau memulakan kerjayanya sebagai pensyarah di Pusat pendidikan Islam, universiti Teknologi Mara (uiTM), Shah alam pada tahun 1988. Beliau telah dilantik memegang beberapa jawatan pentadbiran seperti Koordinator Sains Sosial Islam, Ketua Unit Zakat, Timbalan Pengarah, Pusat Pemikiran dan Kefahaman Islam (CITU) dan Pengarah, Institut Kajian Zakat Malaysia(IKaZ),UniversitiTeknologiMARA. Beliau juga adalah ahli Jawatankuasa penasihat Syariah, hong Leong Islamic Bank Malaysia, ahli jawatankuasa penyelaras Kurikulum program Muamalat, Takaful, Kewangan dan PerbankanIslam,KementerianPengajianTinggiMalaysia,Ahli Senat universiti dan ahli Majlis Dekan pengajian Islam, Institusi PengajianTinggiAwamMalaysiadanbeberapajawatankuasa laindidalamdanluaruniversiti. Beliaujugatelahmenulisdanmembentangkankertaskerjadi peringkatnasionaldanantarabangsadanterlibatmenjalankan penyelidikandalambidangekonomi,perbankandankewangan Islam. Artikel beliau juga telah diterbitkan dalam jurnal tempatandanantarabangsa.

Y.Bhg.AssocProfDrMuhamadRahimiOsman,aged49,isa MalaysiancitizenandisamemberofSyariahAdvisoryBody (SaB) of Takaful Malaysia who was appointed on 12 January 2010. He graduated from University of Malaya in 1987, holding BachelorofShariah(Hons).HeobtainedhisMasterinIslamic economics from university of Yarmouk, Jordan and Doctor of philosophy (phD) in Islamic Banking from International Islamic University Malaysia in 1996 and 2007 respectively. Currently he is Director of the Centre for Islamic Thought and Understanding(CITU),UniversitiTeknologiMARA(UiTM). he joined universiti Teknologi Mara (uiTM) in 1988 as an academic staff at the Centre for Islamic Education. He was appointed to several administration posts such as Coordinator ofIslamicSocialScience,HeadofZakatUnit,DeputyDirector, Centre for Islamic Thought and understanding (CITu), and Director of the Zakat Research Institute of Malaysia (IKaZ), UniversitiTeknologiMARA. He also serves as a member of Shariah Committee of Hong Leong Islamic Bank Malaysia, member of the Curriculum review Committee for Muamalat, Takaful, Islamic Banking and FinanceoftheMinistryofHigherEducationMalaysia,member oftheSenateUniversity,andmemberoftheDeanCouncilof Islamic Studies, higher Learning Institutions of Malaysia and severalothercommitteesinsideandoutsideoftheuniversity. he has written and presented papers at national and international seminar related to Islamic economics, Islamic bankingandfinance.Hisarticleshavealsobeenpublishedin localandinternationaljournals.

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Jawatankuasa Pengurusan

Management Committee

Y. Bhg. Dato' Mohamed Hassan Md. Kamil Pengarah Urusan Kumpulan/ Group Managing Director

Encik Lee Kok Wah Ketua Pegawai Kewangan/ Chief Financial Officer

Puan Azian Kassim

Ketua Pegawai Pelaburan/ Chief Investment Officer

Encik Nazrul Hisham Abdul Hamid Ketua Pegawai Audit Dalaman/ Chief Internal Auditor

Encik Leem Why Chong Pengurus Besar, Aktuari & Aktuari Dilantik/ General Manager, Actuarial & Appointed Actuary

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Jawatankuasa Pengurusan

Management Committee

Encik Mohd Suhaimi Ahmad Pengurus Besar, Agensi Runcit/ General Manager, Retail Agency

Puan Shuhaibahtulaslamiah Hurmuzan

Pengurus Besar, Sumber Manusia/ General Manager, Human Resource

Encik Patrick Wong Chang Yang Ketua Pegawai Informasi/ Chief Information Officer

Encik Mark Anthony Nathan Pengurus Besar, Perancangan Korporat & Bankatakaful/ General Manager, Corporate Planning & Bancatakaful

Encik Mohamad Asri Hj. Yusoff Setiausaha Syarikat/Pengurus Besar, Hal Ehwal Korporat/ Company Secretary/General Manager, Corporate Affairs

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Jawatankuasa Pengurusan

Management Committee

Encik Alex Tan Cheng Leong Ketua Pegawai Pemasaran/ Chief Marketing Officer

Puan Noraini Yusof

Penolong Pengurus Besar, Korporat Langsung/Perbendaharaan/Jualan Cawangan/ Assistant General Manager, Direct Corporate/Treasury/Branch Sales

Puan Roszy Non Penolong Pengurus Besar, Perkhidmatan Pelanggan/Operasi Cawangan/ Assistant General Manager, Customer Service/Branch Operations

Puan Zarina Mohd Sahim Penolong Pengurus Besar, Operasi - Takaful Am/Retakaful/ Assistant General Manager, Operations - General Takaful/Retakaful

Cik Leong Chee Wan Penolong Pengurus Besar, Operasi - Takaful Keluarga/Bankatakaful/Logistik/ Assistant General Manager, Operations - Family Takaful/Bancatakaful/Logistics

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Humanitarian

our promise to the community is the pledge ofourcompassionandcare.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Laporan Jawatankuasa Audit

Audit Committee Report

LembagaPengarahSyarikatTakafulMalaysiaBerhad("Takaful Malaysia") dengan berbesar hati membentangkan Laporan Jawatankuasa Audit bagi tahun kewangan yang dikaji. JawatankuasaAudit("Jawatankuasa")telahditubuhkanpada 6 Mac 1990 untuk menilai struktur kewangan, sistem kawalan dalaman, perancangan strategik, pelaksanaan fungsi audit Takaful Malaysia dan untuk mencadangkan keputusan yang bolehdilaksanakanbagimemastikanpiawaiantanggungjawab korporat, kewibawaan dan kebertanggungjawaban kepada para pemegang saham yang tinggi, selaras dengan piawaian urus tadbir dan pendedahan yang dikehendaki daripada sebuahsyarikatsenaraiawamdiMalaysia. KEAHLIAN DAN MESYUARAT Jawatankuasaterdiridaripadaempat(4)orangahli,tiga(3) daripada mereka adalah Pengarah Bukan Eksekutif Bebas. Maklumat terperinci mengenai ahli dan mesyuarat yang diadakansepanjanglapanbelas(18)bulantempohkewangan berakhir31Disember2010adalahsepertiberikut: NamaAhli Jawatankuasa audit EncikMahadzirAzizan(Pengerusi) (PengarahBukanEksekutifBebas) Y.A.M.TengkuAzmanIbni AlmarhumSultanAbuBakar (PengarahBukanEksekutifBebas) (Bersarapada14Mei2010) PuanRozaidaOmar (PengarahBukanEksekutifBukanBebas) Y.Bhg.Dato'SulaimanMohdYusof (PengarahBukanEksekutifBebas) EncikZakariaIsmail (PengarahBukanEksekutifBebas) (Dilantik pada 15 Mei 2010) Bil.Mesyuarat Diadakan 9 The Board of Directors of Syarikat Takaful Malaysia Berhad ("Takaful Malaysia") is pleased to present the Audit Committee Report for the financial year under review. The AuditCommittee("Committee")wasestablishedon6March 1990 to appraise Takaful Malaysia's financial structure, internal control system, strategic planning, implementation of audit function and to propose applicable decisions in ensuringahighstandardofcorporateresponsibility,integrity andaccountabilitytoshareholdersinlinewiththecorporate governance and disclosure standards expected from that of apubliclistedcompanyinMalaysia. MEMBERSHIP AND MEETINGS TheCommitteecurrentlycomprisesfour(4)members,three (3)ofwhomareIndependentNon-ExecutiveDirectors.The details of members and meetings held during the eighteen (18)monthsfinancialperiodended31December2010areas follows: NameofAudit CommitteeMembers No.ofMeetings Held Attended 9 9

Dihadiri 9

EncikMahadzirAzizan(Chairman) (IndependentNon-ExecutiveDirector) Y.A.M.TengkuAzmanIbni AlmarhumSultanAbuBakar (IndependentNon-ExecutiveDirector) (Retiredon14May2010)

5*

5*

5*

5*

9

9

PuanRozaidaOmar 9 (Non-IndependentNon-ExecutiveDirector) Y.Bhg.Dato'SulaimanMohdYusof (IndependentNon-ExecutiveDirector) 9

9

9

8

8

4*

4*

EncikZakariaIsmail 4* (IndependentNon-ExecutiveDirector) (appointed on 15 May 2010)

4*

Nota: * Menunjukkan bilangan mesyuarat yang diadakan dan dihadiri sepanjang tempoh Pengarah memegang jawatan sebagai Ahli Jawatankuasa Audit. Puan Rozaida Omar adalah ahli Institut Akauntan Malaysia ("MIA").Olehitu,TakafulMalaysiatelahmematuhiPerenggan 15.09(1)(c)(i) Keperluan Penyenaraian Pasaran Utama ("KeperluanPenyenaraian")BursaMalaysiaSecuritiesBerhad ("Bursa Malaysia") yang menggariskan bahawa sekurangkurangnya seorang (1) ahli Jawatankuasa mestilah merupakan ahliMIA.

Note: * Reflects the number of meetings held and attended during the time the Director held office as Audit Committee member. Puan Rozaida Omar is a member of the Malaysian Institute of Accountants ("MIA"). Thus, Takaful Malaysia complies with Paragraph 15.09 (1)(c)(i) of the Main Market Listing Requirements ("Listing Requirements") of Bursa Malaysia SecuritiesBerhad("BursaMalaysia")whichstipulatethatat leastone(1)memberoftheCommitteemustbeamember oftheMIA.

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Laporan Jawatankuasa Audit

Audit Committee Report

Jawatankuasa telah bermesyuarat sebanyak sembilan (9) kali sepanjang lapan belas (18) bulan tempoh kewangan ini. Mesyuarat tersebut telah disusun dan dijalankan dengan sewajarnya melalui penggunaan agenda yang diedarkan kepadaahliterlebihdahuludengannotisyangmencukupi. pengarah urusan Kumpulan, Ketua pegawai Kewangan dan Ketua audit Dalaman selalunya menghadiri mesyuarat tersebut.Sepanjanglapanbelas(18)bulantempohkewangan berakhir31Disember2010,PengarahUrusanKumpulan,Ketua pegawai Kewangan dan Ketua audit Dalaman menghadiri kesemuamesyuaratyangdiadakan. TERMA RUJUKAN Komposisi AhliJawatankuasahendaklahdilantikolehLembagaPengarah daripada kalangan mereka dan hendaklah terdiri daripada sekurang-kurangnyatiga(3)orangahli,dimanakesemuanya hendaklah terdiri dari pengarah Bukan eksekutif dengan majoritinyaadalahPengarahBebas.SeorangPengarahBukan Eksekutif Bebas hendaklah merupakan ahli yang memenuhi keperluan seperti yang diperuntukkan dalam Keperluan penyenaraian Bursa Malaysia dan garis panduan Bank negara Malaysia("BNM"). Sekurang-kurangnyaseorang(1)ahliJawatankuasa: 1) mestilahmerupakanahliMIA;atau 2) jika beliau bukan ahli MIA, beliau mestilah mempunyai pengalaman bekerja sekurang-kurangnya selama tiga (3) tahun dan: (a) beliau mestilah lulus peperiksaan yang dinyatakan dalam Bahagian I Jadual pertama akta akauntan 1967;atau (b) beliau mestilah merupakan ahli salah sebuah persatuan akauntan yang dinyatakan dalam Bahagian IIJadualPertamaAktaAkauntan1967;atau 3) memenuhikeperluan-keperluanlainyangdigariskanatau diluluskanolehBursaMalaysia. ahli Jawatankuasa hendaklah melantik pengerusi daripada kalangan mereka yang merupakan seorang pengarah Bukan Eksekutif Bebas. Sekiranya seorang ahli Jawatankuasa meletakjawatan,meninggalduniaatauatassebarangsebab tidak lagi menjadi ahli sehingga menyebabkan bilangan ahli kurang daripada tiga (3) orang, maka Lembaga Pengarah hendaklahmelantikahlibarudalambilanganyangdiperlukan untuk mencukupkan bilangan minimum ahli kepada tiga (3) orang dalam tempoh tiga (3) bulan dari peristiwa tersebut. Pengarah gantian tidak boleh dilantik sebagai ahli Jawatankuasa. Lembaga Pengarah hendaklah mengkaji semula tempoh perkhidmatan dan prestasi Jawatankuasa audit dan setiap ahlinyasekurang-kurangnyasetiaptiga(3)tahunsekalibagi memastikan Jawatankuasa dan ahlinya telah menjalankan tugas-tugasmerekaberdasarkantermarujukan. Composition The members of the Committee shall be appointed by the Board from amongst their numbers and shall comprise at leastthree(3)members,allofwhommustbeNon-Executive Directors with majority of them shall be Independent Directors. An Independent Non-Executive Director shall be theonewhofulfilstherequirementsasprovidedintheBursa Malaysia Listing requirements and the guidelines of Bank NegaraMalaysia("BNM"). Atleastone(1)memberoftheCommittee: 1) mustbeamemberoftheMIA;or 2) ifheisnotamemberoftheMIA,hemusthaveatleast three(3)years'workingexperienceand: (a) he must have passed the examinations specified in part I of the 1st Schedule of the accountants act 1967;or (b) hemustbeamemberofoneoftheassociationsof accountantsspecifiedinPartIIofthe1stScheduleof theAccountantsAct1967;or 3) fulfilssuchotherrequirementsasprescribedorapproved byBursaMalaysia. ThemembersoftheCommitteeshallelectaChairmanfrom amongst their numbers who shall be an Independent NonExecutive Director. If a member of the Committee resigns, diesorforanyreasonceasestobeamemberwiththeresult that the number of members are reduced below three (3), the Board shall within three (3) months of that event, appoint suchnumberofnewmembersasmayberequiredtomake uptheminimumnumberofthree(3)members.Noalternate DirectorcanbeappointedasamemberoftheCommittee. TheBoardshallreviewthetermofofficeandperformanceof theCommitteeandeachofitsmembersatleastonceevery three(3)yearstoensuretheCommitteeandmembershave carried out their duties in accordance with their terms of reference. The Committee met nine (9) times during the eighteen (18) months financial period. The meetings were appropriately structured and conducted through the use of agenda which weredistributedtomemberswithsufficientnotification. The Group Managing Director, the Chief Financial Officer andtheChiefInternalAuditornormallyattendthemeetings. During the eighteen (18) months financial period ended 31 December 2010, the Group Managing Director, the Chief FinancialOfficerandtheChiefInternalAuditorattendedall themeetingsheld. TERM OF REFERENCE

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Laporan Jawatankuasa Audit

Audit Committee Report

Korum dan Prosedur Jawatankuasa Mesyuarat hendaklah diadakan sekurang-kurangnya empat (4)kalisetahunataudenganlebihkerap,mengikutkeperluan. Bagi membentuk korum mesyuarat, majoriti ahli yang hadir mestilah merupakan Pengarah Bukan Eksekutif Bebas. SekiranyaPengerusitidakhadir,ahli-ahliyanghadirhendaklah melantikseorangPengerusibagimesyuarattersebutdaripada kalanganahli-ahliyanghadir. SetiausahaSyarikathendaklahbertindaksebagaiSetiausaha Jawatankuasa. Atas persetujuan Pengerusi, Setiausaha hendaklah merangka agenda yang akan diedarkan kepada ahli Jawatankuasa bersama-sama dengan kertas sokongan yang berkaitan dalam tempoh yang berpatutan sebelum setiapmesyuarat.Setiausahahendaklahmengedarkanminit mesyuaratkepadasemuaahliJawatankuasa. Jawatankuasa boleh, apabila dianggap perlu, menjemput ahliLembagaPengarahlaindan/atauahliPengurusanKanan untukmenghadirimesyuaratJawatankuasa. Jawatankuasainihendaklahbermesyuaratdenganjuruaudit luar sekurang-kurangnya dua (2) kali setahun, untuk membincangkan sebarang perkara dengan Jawatankuasa tanpa kehadiran mana-mana ahli eksekutif Lembaga Pengarah dan Pengurusan Kanan. Pengerusi Jawatankuasa akan mengadakan mesyuarat untuk mempertimbangkan sebarang perkara yang pihak juruaudit luar percaya perlu di bawa kepada perhatian para Pengarah atau pemegang saham. Jawatankuasa hendaklah mengatur prosiding mesyuaratnya, denganmengambilkirakonvensyenbiasaberhubungperkara tersebut. Kuasa Jawatankuasa diberi kuasa oleh Lembaga Pengarah untuk menyiasat sebarang perkara dalam terma rujukannya. Jawatankuasa juga diberi kuasa untuk mendapatkan sebarang maklumat yang diperlukan daripada mana-mana kakitangan dan semua kakitangan dikehendaki memberi kerjasama terhadap sebarang permintaan yang dibuat oleh Jawatankuasa. Jawatankuasa hendaklah mempunyai akses penuh dan tanpa had kepada sebarang maklumat berkaitan Kumpulan dan hendaklah mempunyai sumber yang diperlukan untuk melaksanakan tugasnya. Jawatankuasa boleh mendapatkan nasihat perundangan atau profesional bebas luar lain yang dianggap perlu, dengan perbelanjaan ditanggung oleh TakafulMalaysia. Jawatankuasa hendaklah mempunyai saluran komunikasi secara langsung dengan juruaudit dalaman dan juruaudit luar, kakitangan pengurusan risiko dan dengan pengurusan KananKumpulandanbolehmengadakanmesyuaratdengan juruaudit luar, juruaudit dalaman atau kedua-duanya sekali, Quorum and Committee's Procedures Meetingsshallbeconductedatleastfour(4)timesannually ormorefrequentlyascircumstancesdictate. In order to form a quorum for the meeting, the majority of members present must be Independent Non-Executive Directors. In the absence of the Chairman, the members present shall elect a Chairman for the meeting from amongst thememberspresent. The Company Secretary shall be the Secretary of the Committee.TheSecretary,inconcurrencewiththeChairman, shalldrawupanagenda,whichshallbecirculatedtogether with relevant support papers within reasonable time prior to each meeting to the members of the Committee. The Secretary shall circulate the minutes of meetings to all membersoftheCommittee. The Committee may, as and when deemed necessary, invite otherBoardmembersand/orSeniorManagementmembers toattendtheCommitteemeetings. The Committee shall, at least twice (2) a year, meet with the external auditors to discuss any matter with the Committee withoutthepresenceofanyexecutivemembersoftheBoard and Senior Management. The Chairman of the Committee shall convene a meeting of the Committee to consider any matterwhichtheexternalauditorsbelieveshouldbebrought totheattentionoftheDirectorsorshareholders. The Committee shall regulate the manner of proceedings of its meetings, having regard to normal conventions on such matter. Authority The Committee is authorised by the Board to investigate any matter within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are required to cooperate with any request made bytheCommittee. The Committee shall have full and unrestricted access to any information pertaining to the Group. The Committee shall havetheresourcesthatarerequiredtoperformitsduties.The Committee can obtain, at the expense of Takaful Malaysia, external legal or other independent professional advice it considersnecessary. The Committee shall have direct communication channels with the internal and external auditors, the risk management personnel and with Senior Management of the Group and

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Laporan Jawatankuasa Audit

Audit Committee Report

tanpa dihadiri oleh para pengarah dan kakitangan Syarikat, bila-biladianggapperlu. Sekiranya Jawatankuasa berpendapat bahawa sebarang perkarayangdilaporkanolehnyakepadaLembagaPengarah masih belum diselesaikan dengan memuaskan sehingga menyebabkan pelanggaran Keperluan Penyenaraian Bursa Malaysia, Jawatankuasa hendaklah melaporkan dengan segeraperkaratersebutkepadaBursaMalaysia. Tugas dan Tanggungjawab Fungsi utama Jawatankuasa adalah untuk membantu LembagaPengarahdalammenilaiprosesKumpulanberkaitan dengan risiko dan persekitaran kawalannya, mengawasi laporan kewangan dan menilai proses audit dalaman dan luar. Olehyangdemikian,tugasdantanggungjawabJawatankuasa adalahsepertiberikut: · mengkajidenganjuruauditluardanmelaporkankepada Lembaga Pengarah, skop dan pelan audit, termasuk sebarang perubahan kepada skop yang dirancang bagi pelanauditdanpenilaianbagisistemkawalandalaman. mengkaji kecukupan skop dan pelan audit dalaman, fungsi-fungsi,dayasaingdansumberfungsiauditdalaman dan sama ada ianya mempunyai kuasa diperlukan untuk menjalankantugas. mengkajiprogramdanprosesauditdalaman,keputusan program, proses atau penyiasatan audit dalaman yang dilaksanakan dan sama ada tindakan yang sewajarnya telah diambil berdasarkan syor-syor yang dikemukakan olehjuruauditdalaman. mengkajilaporanauditdalamandanluarbagimemastikan supaya tindakan segera dan sewajarnya diambil oleh pihak pengurusan terhadap kekurangan utama dalam kawalan atau prosedur yang telah dikenal pasti dan dilaporkankepadaLembagaPengarah. mengkajipenemuanauditutamadantindakanPengurusan sepanjang tahun dengan pihak pengurusan, juruaudit luar dan juruaudit dalaman termasuk status syor-syor audit yangterdahulu. mengkaji kerjasama yang diberi oleh kakitangan Kumpulan kepada juruaudit dan sebarang masalah yang dihadapi dalam menjalankan kerja audit, termasuk sebarang sekatan dalam skop aktiviti atau akses untuk mendapatkanmaklumatyangdiperlukan. shallbeabletoconvenemeetingswiththeexternalauditors, the internal auditors or both, excluding the attendance of other directors and employees of the Company, whenever deemednecessary. WheretheCommitteeisoftheviewthatamatterreportedby ittotheBoardhasnotbeensatisfactorilyresolvedresulting in a breach of Bursa Malaysia Listing Requirements, the Committee shall promptly report such matter to the Bursa Malaysia. Duties and Responsibilities The primary function of the Committee is to assist the Board to assess the Group's processes relating to its risks and controlenvironment,overseefinancialreportingandevaluate theinternalandexternalauditprocesses. Therefore, the duties and responsibilities of the Committee are as follows: · to review with the external auditor and report to the Board, the audit scope and plan, including any changes to the planned scope of the audit plan and evaluation of thesystemofinternalcontrol. to review the adequacy of the internal audit scope and plan, functions, competency and resources of the internal audit functions and that it has the necessary authority to carryoutitswork. to review the internal audit programme, processes, the results of the internal audit programme, processes or investigation undertaken and whether or not appropriate action is taken on the recommendations of the internal auditor. to review the external and internal audit reports to ensure that appropriate and prompt remedial action is taken by Management on major deficiencies in controls or procedures that are identified and reported to the Board. to review the major audit findings and Management's response during the year with Management, external auditors and internal auditors, including the status of previousauditrecommendations. toreviewtheassistancegivenbytheGroup'semployees to the auditors, and any difficulties encountered in the course of the audit work, including any restrictions on the scopeofactivitiesoraccesstorequiredinformation.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Laporan Jawatankuasa Audit

Audit Committee Report

· mengkaji kebebasan dan objektif juruaudit luar dan khidmatmereka,termasukkhidmatbukanauditdanyuran profesional,bagimemastikankeseimbanganobjektifdan nilaiwang. mengkajipelantikan,prestasi,yuranauditdansebarang persoalanberhubungpeletakanjawatanataupemecatan juruaudit luar sebelum memberi cadangan kepada LembagaPengarah. mengkajikeputusansukutahunandanpenyatakewangan akhir tahun, sebelum kelulusan Lembaga Pengarah dengan menumpu terutamanya kepada: - perubahan atau pelaksanaan dasar dan praktis perakaunanutama; - pelarasanketaradanperistiwapentingdanluarbiasa timbuldariaudit; - andaianperniagaanberterusan;dan - pematuhan kepada standard kewangan, Bursa Malaysiadankeperluanundang-undang. membincangkan masalah dan persoalan yang wujud dari audit interim dan akhir dan sebarang perkara yang ingindibincangkanolehjuruaudit(tanpakehadiranpihak Pengurusanjikaperlu); mengkaji sama ada terdapat sebarang alasan (dengan disokongolehsebab-sebabtertentu)untukmempercayai bahawajuruauditluarSyarikattidaksesuaiuntukdilantik semula. mengkaji Piagam Audit Dalaman, belanjawan dan komposisikakitanganBahagianAuditDalaman. mengkaji sebarang pencapaian dan penilaian terhadap prestasiahlifungsiauditdalaman. meluluskan sebarang pelantikan atau pemecatan kakitangankananahliauditdalaman. menyedaripeletakanjawatankakitanganauditdalaman danmemberipeluangkepadamerekamenyatakansebab peletakanjawatannya. mengkajikecukupandankewibawaankawalandalaman, penemuan audit dalaman dan mencadangkan tindakan yang perlu diambil oleh Pengurusan. Laporan juruaudit dalaman dan Jawatankuasa tidak harus tertakluk kepada kebenaran dari Ketua Pegawai Eksekutif/Pengarah UrusanKumpulandanPengarahEksekutif. · toreviewtheindependenceandobjectivityoftheexternal auditorsandtheirservices,includingnon-auditservices andtheprofessionalfees,soastoensureaproperbalance betweenobjectivityandvalueformoney. toreviewtheappointment,performance,auditfeesand any question regarding the resignation or dismissal of externalauditorsbeforemakingrecommendationstothe Board. toreviewthequarterlyandyearendfinancialstatements, before the approval by the Board, focusing particularly on: - changes in or implementation of major accounting policyandpractice; - significant adjustments and unusual event arising fromtheaudit; - thegoingconcernassumption;and - compliance with accounting standards, Bursa Malaysiaandotherlegalrequirements. to discuss problems and reservations arising from the interimandfinalaudits,andanymattertheauditormay wish to discuss (in the absence of Management where necessary); to review whether there is a reason (supported by grounds)tobelievethattheCompany'sexternalauditors isnotsuitableforthere-appointment. toreviewtheInternalAuditCharter,budgetandstaffing oftheInternalAuditDivision. toreviewanyappraisalorassessmentoftheperformance ofmembersoftheinternalauditfunction. to approve any appointment or termination of senior staffmembersoftheinternalauditfunction. totakecognizanceofresignationsofinternalauditstaff members and provide the resigning staff member an opportunitytosubmithisreasonsforresigning. toreviewtheadequacyandintegrityofinternalcontrols, the internal audit findings, and recommend action to be taken by Management. The reports of the internal auditorsandtheCommitteeshouldnotbesubjecttothe clearanceoftheChiefExecutiveOfficer/GroupManaging DirectorandExecutiveDirectors.

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Audit Committee Report

· mengarahdansekiranyawajar,menyeliasebarangprojek atau siasatan khas jika perlu, dan mengkaji laporan siasatanberkenaansebarangpenyalahgunaan,penipuan dankecurianyangbesar. memastikan akaun disediakan tepat pada masanya dan dengan cara yang tepat dengan kajian secara kerap terhadap kecukupan peruntukan bagi luar jangka, dan hutanglapukdanhutangragu. memastikan penerbitan penyata/laporan kewangan tahunanyangmenepatimasa. mengkajisebarangurusniagapihakberkaitandansituasi konflikkepentinganyangmungkintimbuldalamSyarikat atauKumpulan,termasuksebarangurusniaga,prosedur atau tatacara yang menimbulkan persoalan terhadap kewibawaanpihakPengurusan. melaksanakan sebarang fungsi lain yang mungkin dipersetujuiolehLembagaPengarah. · to direct and where appropriate supervise any special projects or investigation considered necessary, and review investigation report on any major defalcation, fraudsandthefts. toensurethattheaccountsarepreparedinatimelyand accurate manner with frequent reviews of the adequacy ofprovisionsagainstcontingencies,andbadanddoubtful debts. to ensure prompt publication of annual financial statements/report. to review any related party transaction and conflict of interest situation that may arise within the Company or the Group, including any transaction, procedure or course of conduct that raises questions of management integrity. toperformanyotherfunctionsasmaybeagreedbythe Board.

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RINGKASAN AKTIVITI JAWATANKUASA Aktiviti-aktiviti yang telah dijalankan oleh Jawatankuasa sepanjang tahun kewangan yang dikaji termasuk: · Mengkajidanmemantaudenganjuruauditluar,keputusan danperkembanganauditbagitahunkewanganberakhir 30 Jun 2009, laporan audit dan surat pengurusan, termasuktindakanPengurusanberkaitannya. MenguruskanpelaksanaanLimitedReviewyangdilakukan olehjuruauditluar. Berbincang mengenai pelantikan semula juruaudit luar bagilapanbelas(18)bulantempohkewanganberakhir31 Disember2010. Mengkaji skop kerja dan rancangan audit juruaudit luar bagi lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010. Sebelum audit dijalankan, wakilwakil juruaudit luar telah membentangkan strategi dan rancanganaudit. Berbincang mengenai yuran audit yang perlu dibayar kepadajuruauditluar. Berbincang dengan juruaudit luar berhubung sebarang perkarayangmemerlukanperhatianLembagaPengarah dan Pemegang Saham tanpa kehadiran ahli Lembaga PengarahEksekutifdanpihakPengurusan.

SUMMARY OF ACTIVITIES OF THE COMMITTEE The activities undertaken by the Committee during the financialyearunderreviewincludethefollowing: · Reviewed and monitored with the external auditors, the results and progress of the audit for the financial year ended 30 June 2009, the audit report and the Management letter, including Management's response thereto. ManagedtheLimitedReviewexerciseperformedbythe externalauditors. Discussedthere-appointmentofexternalauditorsforthe eighteen(18)monthsfinancialperiodended31December 2010. Reviewedtheexternalauditors'scopeofworkandaudit plansfortheeighteen(18)monthsfinancialperiodended 31 December 2010. Prior to the audit, representatives from the external auditors presented their audit strategy andplan. Discussed the audit fees payable to the external auditors. Discussed with external auditors any matters that warrant the Board and Shareholders' attention without the presence of themember oftheExecutive Directors andManagement.

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Laporan Jawatankuasa Audit

Audit Committee Report

· Mengkaji pelan audit, program dan keperluan sumber BahagianAuditDalamanbagitahunkewangan2011dan 2012. Mengkaji laporan audit dalaman dan audit khas untuk TakafulMalaysiadansubsidiarinyayangmenekankanisuisuaudit,cadangandanmaklumbalaspihakPengurusan yang berkaitan. Berbincang dengan Pengurusan mengenai tindakan yang telah dan akan diambil untuk mempertingkatkansistemkawalandalamanberdasarkan peluang-peluang penambahbaikan yang telah dikenal pastidalamlaporanauditdalaman. Mengkaji laporan susulan oleh juruaudit dalaman mengenai status tindakan yang diambil oleh pihak Pengurusan terhadap cadangan yang diberikan dalam laporanaudit. Mengkaji laporan susulan oleh juruaudit dalaman berhubung isu-isu yang dibangkitkan berdasarkan penemuan daripada pemeriksaan oleh BnM dan status tindakanyangdiambilolehpihakPengurusanmengenai isuyangdibangkitkanolehBNM. Mengkaji laporan susulan oleh juruaudit dalaman berhubungisuyangdibangkitkandalamsuratPengurusan olehjuruauditluardanstatustindakanyangdiambiloleh pihakPengurusanmengenaiisutersebut. Memantau perkembangan Bahagian Audit Dalaman dalam menyelesaikan auditnya dalam tempoh yang telah ditetapkan. Memeriksakecukupankemahiran,pengetahuandandaya saingterasjuruauditdalaman. MengkajipenyatakewanganSyarikatyangtelahdiaudit sebelum diserahkan kepada Lembaga Pengarah bagi pertimbangan dan kelulusan mereka. Kajian ini adalah untuk memastikan supaya penyata kewangan yang telah diaudit disediakan mengikut peruntukan akta Syarikat 1965 dan piawaian perakaunan berkaitan yang diluluskan. Mengkaji pematuhan Syarikat terhadap Keperluan penyenaraian Bursa Malaysia, akta pasaran dan PerkhidmatanModal2007,GarisPanduanBNM,piawaian perakaunan berkaitan yang diluluskan dan keperluankeperluan perundangan dan penguatkuasaan lain, terutamanya bagi penyata kewangan suku tahunan dan akhirtahun. MengkajilaporanPematuhanmengenaitahappematuhan dengan keperluan Pihak Penguatkuasa, undang-undang danAkta. · Reviewed the Internal Audit Division's audit plan, programmesandresourcesrequirementsforthefinancial years2011and2012. Reviewed the internal audit reports and special audit reports for Takaful Malaysia and its subsidiaries, which highlighted the audit issues, recommendations and Management's response thereto. Discussed with Managementonactionstakenortobetakentoimprove the system of internal control based on improvement opportunitiesidentifiedintheinternalauditreports. Reviewed follow-up reports by the internal auditors on the status of actions taken by the Management on recommendationssuggestedintheauditreports. Reviewed follow-up reports by the internal auditors on BNM's examination findings and status of actions taken bytheManagementonissuesraisedbyBNM. Reviewed follow-up reports by the internal auditors on externalauditors'findingsassetoutintheManagement letterandstatusofactionstakenbytheManagementon issuesraisedbytheexternalauditors. MonitoredtheprogressoftheInternalAuditDivisionin completingitsauditwithinthestipulatedtimeframe. Examinedtheadequacyoftheskills,knowledgeandcore competenciesoftheinternalauditors. Reviewed the audited financial statements of the Company prior to submission to the Board for their consideration and approval. The review was to ensure that the audited financial statements were drawn up in accordance with the provisions of the Companies act 1965andtheapplicableapprovedaccountingstandards. Reviewed the Company's compliance in particular the quarterly and the year end financial statements with Bursa Malaysia Listing requirements, Capital Markets and Services Act 2007, BNM Guidelines, applicable approved accounting standards and other relevant legal andregulatoryrequirements. Reviewed the Compliance reports on the level of compliance with regulators' requirements, laws and Acts.

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Laporan Jawatankuasa Audit

Audit Committee Report

· Membincangkan pelaksanaan keperluan-keperluan baru yang digariskan oleh pihak penguatkuasaan seperti FrS 139danFRS4. Mengkaji pengumuman keputusan kewangan suku tahunan yang belum diaudit sebelum disyorkan kepada LembagaPengarahuntukkelulusan. Mengkaji urusniaga pihak yang berkaitan dalam Kumpulan. Mengkaji penyata pendedahan dalam Laporan Tahunan sepertiPenyataUrusTadbirKorporat,PenyataKawalan Dalaman dan Laporan Jawatankuasa audit dalam mematuhi Keperluan penyenaraian Bursa Malaysia dan SuruhanjayaSekuriti. Menasihat dan membimbing perjalanan penyiasatan di dalam sebarang aktiviti atau perkara dalam bidang rujukannya. · · · Discussed the implementation of new requirements set forthbytheRegulatorssuchasFRS139andFRS4. Reviewed the quarterly unaudited financial results announcements before recommending them for the Board'sapproval. ReviewedrelatedpartytransactionswithintheGroup. ReviewedthedisclosurestatementsintheAnnualReport such as Corporate Governance Statement, Statement on Internal Control and audit Committee report in compliance with Bursa Malaysia Listing requirements andSecuritiesCommission. Advisedandguidedtheconductofinvestigationintoany activityormatterwithinitstermsofreference.

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INTERNAL AUDIT FUNCTION AND ACTIVITIES The Internal audit Division is independent of the activities or operations of other operating units and reports directly totheAuditCommittee.Theprincipalroleofthedivisionis to undertake independent regular and systematic reviews of thesystemsofinternalcontrolssoastoprovidereasonable assurance that such systems continue to operate satisfactorily and effectively. The internal audit practices a risk-based approachinitsauditplanandexamination. ItistheresponsibilityoftheInternalAuditDivisiontoprovide the Committee with independent and objective reports on the state of internal control of the various operating units within the Group and the extent of compliance of the units withtheGroup'sestablishedpoliciesandproceduresaswell asrelevantstatutoryrequirements. ThefollowingactivitieswereundertakenbytheInternalAudit Divisionduringthefinancialyearunderreview: · Developed two-year audit plan (FYE 2011 and 2012) premised on risk based audit approach taking into consideration input from the risk profiles established by management, discussion with Senior Management on critical processes and in cognizance with Takaful Malaysia's vision and mission in the context of its evolving businessenvironmentforCommittee'sconsideration.

FUNGSI DAN AKTIVITI AUDIT DALAMAN Bahagian Audit Dalaman adalah bebas daripada aktiviti atauoperasiunit-unitoperasilaindanmelaporteruskepada Jawatankuasa Audit. Peranan utama bahagian ini adalah untuk menjalankan kajian sistem kawalan dalaman secara bebas,kerapdansistematiksupayadapatmemberijaminan yang sewajarnya bahawa sistem tersebut mampu terus beroperasisecaraberkesandanmemuaskan.Auditdalaman mengamalkanpendekatanberasaskanrisikodalamrancangan auditdanpemeriksaannya. Adalah menjadi tanggungjawab Bahagian Audit Dalaman untuk menyediakan laporan bebas dan objektif kepada Jawatankuasa tentang status kawalan dalaman di pelbagai unit operasi dalam Kumpulan serta tahap pematuhan unitunit tersebut terhadap dasar dan prosedur Kumpulan serta terhadapkeperluanberkanunyangberkaitan. Aktiviti-aktiviti berikut telah dijalankan oleh Bahagian Audit Dalaman dalam tahun kewangan yang dikaji: · Membangunkanpelanauditduatahun(tahunkewangan 2011dan2012)berdasarkanpendekatanauditberasaskan risikoyangdiambilmenjadiinputpertimbangandariprofil risiko yang dibentuk oleh Pengurusan, perbincangan denganPengurusanKananterhadapproses-prosesyang kritikal dan dalam pengetahuan dengan wawasan dan misi TakafulMalaysiadalamkontekspenglibatanpersekitaran perniagaanuntukpertimbanganJawatankuasa.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Laporan Jawatankuasa Audit

Audit Committee Report

· Melaksanakanperananjaminanbebasdenganmembuat ulasankajianberjadualkeataskeberkesanan,kecekapan dan mekanisma kawalan ekonomi untuk mengutarakan risiko dan keutamaan dalam bidang operasi, kewangan, teknologi maklumat, pembangunan modal insan, pembangunan perniagaan dan fungsi-fungsi strategik yangmenggunapakaipendekatanauditberasaskanrisiko sepertiyangdinyatakandalamPelanAudit. Menyediakan jaminan yang munasabah ke atas tahap pematuhan polisi dan prosedur yang telah disediakan di samping keperluan statutori BNM dan badan-badan perundanganlain. · Executed independent assurance role by performing scheduled reviews on the effectiveness, efficiency and economical of control mechanism to address risks and concernsintheareasofoperations,financial,information technology, human capital development, business development and strategic functions on a risk based auditapproachassetoutintheAuditPlan. Provided reasonable assurance on the extent of compliancewithestablishedpoliciesandproceduresas well as BnM statutory requirements and other regulatory bodies. RenderedadvisoryservicestomanagementofCompany anditssubsidiaries. Recommendedimprovementstothebusinessprocesses and enhancement to the existing system of internal controls. Conducted follow-up audit on status of actions taken by the Management on recommendations suggested in audit reports of internal auditors, external auditors, BnM examiners,etc. Carried out special reviews and investigations as requestedbyseniormanagementandendorsementfrom theAuditCommitteeChairman. Reviewed the adequacy and appropriateness of the internal controls and risk exposures in the new product packages based on the revised Product Development Framework(PDF). Provided guidance and advices to the Project Implementation Committee for new and revised products beforelaunching. Conducted reviews on IT system set-ups, tests and deploymentsbeforeembarkingintoproduction. Conducted special reviews on Data Cleansing and MigrationexerciseforthenewITcoresystem. Conducted audit computer hardware, operating and application systems as well as the information communication technology (ICT) network of Takaful Malaysia.

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· Memberi khidmat nasihat kepada Pengurusan dan subsidiariSyarikat. · Mencadangkan peningkatan ke atas proses perniagaan danpenambahbaikanbagisistemkawalandalamanyang sediaada. Menjalankan audit susulan berhubung status tindakan yang diambil oleh Pengurusan berdasarkan cadangan yang dibuat dalam penemuan audit juruaudit dalaman, juruauditluar,pegawaipemeriksaBNMdanlain-lain. Menjalankan semakan khas dan penyiasatan seperti yang diminta oleh pengurusan Kanan dan pengesahan daripadaPengerusiJawatankuasaAudit. Mengkaji semula kecukupan dan kesesuaian kawalan dalaman dan pendedahan risiko di dalam pakej produk baru berdasarkan semakan semula Rangka Kerja PembangunanProduk. MenyediakanbimbingandannasihatkepadaJawatankuasa Pelaksanaan Projek sebelum pelancaran produk baru dan lama. Menjalankan semakan ke atas penyediaan sistem teknologi maklumat, ujian dan penggunaan sebelum ianyadilaksanakan. Menjalankan semakan khas terhadap pelaksanaan pembersihan and perpindahan data untuk sistem teras teknologimaklumatyangbaru. Menjalankanauditkeatasperkakasankomputer,sistem operasi dan aplikasi serta rangkaian teknologi komunikasi maklumat(ICT)TakafulMalaysia.

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Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Laporan Jawatankuasa Audit

Audit Committee Report

· Menjadi pemerhati pemilihannya. dalam tender dan proses · Participated in tender and selection process in the capacityofanobserver. Reviewed and provided guidance on the Business ContinuityManagementexerciseconducted. ReviewedandcompiledtheupdatesontheSupervisory ConcernspriortosubmissiontoBankNegaraMalaysia. ReviewedtheoutsourcingactivitiesfortheCompany. Guided management in preparing the Audit Committee report and Statement of Internal Control for disclosure intheannualreport.

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Menyemak dan menyediakan bimbingan terhadap latihan Pengurusan Kesinambungan Perniagaan yang dijalankan. Menyemakdanmengumpuldata-dataterkiniSupervisory Concern sebelum diserahkan kepada Bank Negara Malaysia. MengkajisemulaaktivitikhidmatluarterhadapSyarikat. Membimbing Pengurusan dalam menyediakan Laporan Jawatankuasa audit dan penyata Kawalan Dalaman untukdizahirkandalamlaporantahunan.

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Laporan daripada tugasan audit dikemukakan kepada pihak Pengurusan untuk perhatian dan tindakan pembetulan yang perlu seperti yang dicadangkan. Pihak Pengurusan bertanggungjawab memastikan tindakan pembetulan terhadap kelemahan yang dilapor dilaksanakan dalam jangka masa yang ditetapkan. Jumlah kos yang terbabit bagi mengekalkan fungsi Audit Dalaman yang dilakukan secara dalaman bagi tahun kewangan yang dikaji adalah lebih kurang sebanyak RM3.0 juta merangkumi sebahagian besarnya adalah gaji, elaun perjalanan dan penginapan dan elaunsarahidupbagimenjalankantugasanaudit.

reports from the audit assignments are forwarded to the Management for attention and necessary corrective actions as recommended. The Management is responsible for ensuring that corrective actions on reported weaknesses are taken within the required time frame. The costs incurred in maintainingtheInternalAuditfunctionwhichisperformedinhouseforthefinancialyearunderreviewwasapproximately RM3.0 million comprising mainly salaries, travelling and accommodation expenses and subsistence allowance for auditassignments.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Penyata Urus Tadbir Korporat

Corporate Governance Statement

Lembaga Pengarah Syarikat Takaful Malaysia Berhad ("Takaful Malaysia") terus mematuhi dan menyokong sepenuhnyaKodUrusTadbirKorporatMalaysia("Kod")dan sentiasa komited dalam memastikan supaya Prinsip-prinsip dan Amalan Terbaik Urus Tadbir Korporat dipatuhi dan diamalkan oleh keseluruhan Kumpulan bagi membolehkan urusseliahal-ehwalKumpulandikendalikansecaraprofesional, bertanggungjawab dan berwibawa dengan objektif untuk melindungidanmempertingkatkannilaipelaburanpemegang sahamdanprestasikewanganKumpulan. Lembaga Pengarah dengan ini berbesar hati melaporkan pelaksanaanpenggunaanPrinsip-prinsipKoddansejauhmana KumpulantelahmematuhiKodAmalanTerbaiksebagaimana yang ditetapkan menurut Keperluan penyenaraian pasaran Utama Bursa Malaysia Securities Berhad ("Keperluan Penyenaraian Bursa Malaysia") sepanjang tahun kewangan yangdikaji. PENGARAH Lembaga Pengarah LembagaPengarahbertanggungjawabterhadapkeseluruhan aspekurustadbirkorporatKumpulandanjugadiamanahkan dengantanggungjawabdalammelaksanakanpenjagaanyang sewajarnyakeatasSyarikatsertasumber-sumberKumpulan bagi memelihara kepentingan para pemegang saham dan memastikanpengurusanperniagaanyangsewajarnya. Mesyuarat Lembaga Pengarah Mesyuarat Lembaga Pengarah dijadualkan terlebih dahulu padapermulaantahunkalendardenganmesyuarattambahan diadakan bila perlu. Tujuh belas (17) mesyuarat Lembaga Pengarah telah diadakan sepanjang lapan belas (18) bulan tempoh kewangan yang dikaji dengan butiran kehadiran setiapPengarahsepertiberikut: Nama/Name Y.Bhg.TanSriDr.HadenanA.Jalil (PengarahBukanEksekutifBukanBebas/Non-IndependentNon-ExecutiveDirector) (Meletak jawatan pada 16 Julai 2009/resigned on 16 July 2009) Y.Bhg.Dato'PadukaIsmeeIsmail (PengarahBukanEksekutifBukanBebas/Non-IndependentNon-ExecutiveDirector) (Dilantikpada16Disember2009/Appointedon16December2009) Y.Bhg.Dato'MohamedHassanMdKamil (PengarahEksekutifBukanBebas/Non-IndependentExecutiveDirector) Y.A.M.TengkuAzmanIbniAlmarhumSultanAbuBakar (PengarahBukanEksekutifBebas/IndependentNon-ExecutiveDirector (Bersarapada14Mei2010/Retiredon14May2010) PuanRozaidaOmar (PengarahBukanEksekutifBukanBebas/Non-IndependentNon-ExecutiveDirector) The Board of Directors ("the Board") of Syarikat Takaful Malaysia Berhad ("Takaful Malaysia") continues to subscribe and fully support the Malaysian Code of Corporate Governance ("the Code") and is committed to ensure that the principles of Corporate Governance and Best practices are observed and practised throughout the Group so that the affairs of the Group are conducted with professionalism, accountabilityandintegritywiththeobjectiveofsafeguarding andenhancingshareholders'valueandfinancialperformance oftheGroup. The Board is pleased to report on the application of the principles of the Code and the extent of compliance with the Best practices of the Code as required under the Main Market Listing requirements of Bursa Malaysia Securities Berhad ("BursaMalaysiaListingRequirements")duringthefinancial yearunderreview. DIRECTORS The Board of Directors TheBoardisresponsiblefortheoverallcorporategovernance oftheGroupandisalsoentrustedwiththeresponsibilityof exercisingreasonablecareoftheCompanyaswellasGroup's resources in the best interests of its shareholders and in ensuringtheproperconductofbusiness. Board Meetings Board meetings are scheduled in advance at the beginning of a calendar year with additional meetings convened when necessary.Seventeen(17)Boardmeetingswereheldduring theeighteen(18)monthsfinancialperiodunderreviewwith details of meetings' attendance of each Director as follows: Kehadiran/ Attendance 1/1 Peratus (%)/ Percentage (%) 100

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Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Penyata Urus Tadbir Korporat

Corporate Governance Statement

Nama/Name EncikMahadzirAzizan (PengarahBukanEksekutifBebas/IndependentNon-ExecutiveDirector) Y.Bhg.Dato'SulaimanMohdYusof (PengarahBukanEksekutifBebas/IndependentNon-ExecutiveDirector) EncikJohanAbdullah (PengarahBukanEksekutifBukanBebas/Non-IndependentNon-ExecutiveDirector) EncikZakariaIsmail (PengarahBukanEksekutifBebas/IndependentNon-ExecutiveDirector) (Dilantik pada 15 Mei 2010/appointed on 15 May 2010) Semua Pengarah memiliki latar belakang pengalaman kerja yangluasdalampelbagaibidang,dandenganinimembolehkan mereka membuat pertimbangan yang sewajarnya dalam melaksanakantugasmereka. Keseimbangan Lembaga Pengarah Sepanjangtahunkewanganyangdikaji,LembagaPengarah terdiri daripada: Nama/Name PengarahEksekutifBukanBebas/Non-IndependentExecutiveDirector PengarahBukanEksekutifBukanBebas/Non-IndependentNon-ExecutiveDirectors PengarahBukanEksekutifBebas/IndependentNon-ExecutiveDirectors * Komposisi di atas adalah selepas peletakan jawatan oleh Y. Bhg. Tan Sri Dr Hadenan A. Jalil pada 16 Julai 2010, persaraan Y. A. M. Tengku Azman Ibni Almarhum Sultan Abu Bakar pada 14 Mei 2010 dan pelantikan Y. Bhg. Dato` Paduka Ismee Ismail dan Encik Zakaria Ismail masing-masing pada 16 Disember 2009 dan 15 Mei 2010. Komposisi di atas mematuhi Keperluan penyenaraian Bursa Malaysia yang mewajibkan satu pertiga (1/3) daripada para PengarahTakafulMalaysiaterdiridaripadaPengarahBebas. LembagaPengarahyangmempunyaipelbagailatarbelakang dankepakarankhusus,secarakolektifnyamembawabersama merekapengalamandankepakaranyangluasdalambidangbidang seperti kewangan, insurans, aktuari, perakaunan, kesetiausahaan syarikat, perundangan, pengurusan dan perbankan.ProfilahliLembagaPengarahadadibentangkan di muka surat 24 hingga 30 dalam Laporan Tahunan ini. Terdapat pembahagian yang jelas antara tanggungjawab PengerusidanPengarahUrusanKumpulanbagimemastikan keseimbangankuasadanautoriti.

Kehadiran/ Attendance 16/17 16/17 16/17

Peratus (%)/ Percentage (%) 94 94 94

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AllDirectorshavethebackingofextensiveworkexperience invariousfieldsandthereforeabletoexerciseindependent judgementinordertodischargetheirduties. Board Balance Duringthefinancialyearunderreview,theBoardcomprises the following:

Komposisi/ Composition 1/7 3/7 3/7

Peratus(%)/ Percentage (%) 14 43 43

* The above composition is after the resignation of Y. Bhg. Tan Sri Dr Hadenan A. Jalil on 16 July 2010, retirement of Y. A. M. Tengku Azman Ibni Almarhum Sultan Abu Bakar on 14 May 2010 and appointments of Y. Bhg. Dato` Paduka Ismee Ismail and Encik Zakaria Ismail on 16 December 2009 and 15 May 2010 respectively. TheabovecompositionisincompliancewithBursaMalaysia Listing requirements which require that one third (1/3) of DirectorsofTakafulMalaysiatobeIndependentDirectors. The Board with their different backgrounds and specializations,collectivelybringwiththemawiderangeof experienceandexpertiseinareassuchasfinance,insurance, actuary, accounting, company secretarial, legal, management and banking. The profiles of the Directors are provided on pages24to30oftheAnnualReport.Thereisacleardivision of responsibilities between the Chairman and the Group ManagingDirectortoensurethatthereisabalanceofpower andauthority.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Penyata Urus Tadbir Korporat

Corporate Governance Statement

peranan pengerusi dan pengarah urusan Kumpulan ditakrif denganjelasdimanaPengerusibertanggungjawabterhadap pengendalianLembagaPengarahdanmenerajuiperbincangan diperingkatLembagaPengarahsementaraPengarahUrusan KumpulanbertanggungjawabterhadappengurusanSyarikat dan Kumpulan serta pelaksanaan dasar dan keputusan yang telahdiputuskanolehLembagaPengarah. Kod ada mengesyorkan pelantikan pengarah Bukan eksekutif Bebas Kanan di mana sebarang kemusykilan boleh dirujuk olehahliLembagaPengarahyanglain.Walaubagaimanapun, memandangkan setiap ahli Lembaga Pengarah adalah berkalibertinggidanperananyangberbezaantaraPengerusi dan Pengarah Urusan Kumpulan, buat masa ini Lembaga pengarah menganggap adalah tidak perlu untuk melantik PengarahBukanEksekutifBebasKananyangkhusus. Jawatankuasa Lembaga Pengarah DalammemastikanLembagaPengarahmelaksanakantugas mereka dengan lebih berkesan di samping meningkatkan perniagaan dan kecekapan operasi, Lembaga Pengarah mengagihkan tanggungjawab tertentu kepada empat (4) JawatankuasaLembagaPengarah,iaitu: · JawatankuasaAudit · JawatankuasaPemilihan ·JawatankuasaGanjaran;dan · JawatankuasaPengurusanRisiko Setiap Jawatankuasa mempunyai terma rujukan bertulis yang jelas dan Lembaga Pengarah menerima laporan bagi setiappersidangandanpertimbanganJawatankuasatersebut. PengerusibagisetiapJawatankuasaakanmelaporkankepada Lembaga Pengarah setiap keputusan dari mesyuarat yang dijalankan dan laporan tersebut akan dimasukkan ke dalam minitMesyuaratLembagaPengarah. KeahlianJawatankuasaadalahbergantungkepadakemahiran danpengalamanseseorangPengarahsertakebolehanmereka memberinilaitambahkepadaJawatankuasa. Badan Penasihat Syariah Badan Penasihat Syariah telah diberi kepercayaan oleh LembagaPengarahbagimemastikanoperasidanprodukyang ditawarkan oleh Kumpulan adalah berlandaskan keperluan Syariah. Kesemua perkara yang memerlukan pandangan dankeputusanBadanPenasihatSyariahakandibentangkan di dalam mesyuarat Badan penasihat Syariah di mana ianya juga dihadiri oleh pihak Pengurusan dan wakil dari Jabatan Syariah. Kemudian, perkara tersebut akan dibawa kepada Lembaga Pengarah untuk memaklumkan keputusan yang telahdibuat. The roles of the Chairman and Group Managing Director are clearly defined with the Chairman being responsible for running the Board and lead the discussion at the Board level whilst the Group Managing Director is responsible for managing the Company and the Group as well as the implementationoftheBoard'spoliciesanddecisions. The Code recommends the appointment of a senior independent non-executive Director to whom concerns maybeconveyedbyotherBoardmembers.However,given the high caliber and standing of the individual members of the Board and the separation of the roles of the Chairman and Group Managing Director, the Board currently does not consider it necessary to nominate a designated Senior IndependentNon-ExecutiveDirector. Board Committees To enable the Board to discharge its duties effectively whilst enhancing business and operational efficacy, the Board delegates certain responsibilities to four (4) Board Committees, namely: · AuditCommittee · NominationCommittee · RemunerationCommittee;and ·RiskManagementCommittee all Committees have clear written terms of reference and the Boardreceivesreportsoftheirproceedingsanddeliberations. The Chairman of the various Committees will report to the Board the outcome of their meetings and such reports are incorporatedintheminutesoftheBoardMeeting. The Committees' membership are based on Directors' skills and experience as well as their ability to add value to the Committees. Shariah Advisory Body The Shariah Advisory Body is entrusted by the Board to ensure that the Group's operations and products offered are inaccordancewithShariahrequirements.Allmatterswhich require the Shariah advisory Body's opinion and decision aredeliberatedatShariahAdvisoryBodymeetingswiththe attendance of the Management and representatives from the ShariahDepartment.Thereon,thesaidmattersarebroughtto theattentionoftheBoardforaninformeddecisionmaking.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

053

Penyata Urus Tadbir Korporat

Corporate Governance Statement

Badan penasihat Syariah terdiri daripada lima (5) orang ahli di mana kesemuanya mempunyai pengalaman dan kepakaran yangdiperlukandidalambidangmasing-masing.Y.Bhg.Dr. Ahmad Shahbari @ Sobri Salamon merupakan Pengerusi Badan Penasihat Syariah sekarang. Enam (6) mesyuarat Badan penasihat Syariah telah diadakan sepanjang lapan belas(18)bulantempohkewanganyangdikajidenganbutiran kehadiransetiapahlisepertiberikut: Nama/Name [email protected] Y.Bhg.UstazMohdBakirHj.Mansor Y.Bhg.Dr.AidaOthman Y.Bhg.AssociateProfessorDr.MuhamadRahimiOsman (Dilantik pada 12 Januari 2010/appointed on 12 January 2010) Y.Bhg.DatukAbdulHamidSaid (Bersara pada 1 april 2011/retired on 1 april 2011) Sumber Maklumat kepada Lembaga Pengarah LembagaPengarahmempunyaiaksespenuhdansecukupnya kepada maklumat berkenaan kertas Lembaga Pengarah yang diedarkan sebelum mesyuarat agar Pengarah boleh mendapatkan penjelasan lanjut, apabila diperlukan bagi mendapatkan penerangan yang sewajarnya sebelum mesyuarat. Kertas Lembaga Pengarah merangkumi minit mesyuarat Lembaga Pengarah yang lalu, minit mesyuarat semua Jawatankuasa Lembaga Pengarah dan laporan yang berkaitan isu-isu mesyuarat yang meliputi kewangan, pelaburan,teknologimaklumat,operasi,sumbermanusiadan perkara berkaitan dengan pematuhan peraturan. Pengarah Urusan Kumpulan akan memaklumkan kepada Lembaga Pengarah tepat pada masanya, berhubung semua isu penting yang boleh mempengaruhi prestasi Kumpulan dan pembangunanutamayangberlakudalamKumpulan. SemuaahliLembagaPengarahmempunyaiaksesyangtidak terhad kepada maklumat yang tepat dan pada masa yang ditetapkan serta khidmat nasihat Setiausaha Syarikat yang bertanggungjawab untuk memastikan supaya prosedur mesyuarat Lembaga Pengarah dituruti dan semua syarat sertaperaturanyangditerimapakaidipatuhi.ParaPengarah juga boleh mendapatkan nasihat badan profesional bebas dalam menjalankan tugas mereka, di bawah tanggungan TakafulMalaysia. Pelantikan sebagai ahli Lembaga Pengarah Pelantikan ahli Lembaga Pengarah yang baru dipertimbang dan dinilai oleh Jawatankuasa pemilihan dan Jawatankuasa tersebut akan mengesyorkan pelantikan tersebut kepada Lembaga Pengarah untuk diluluskan. Selaras dengan Akta Takaful,1984dankeperluanBankNegaraMalaysia("BNM"), TheShariahAdvisoryBodyconsistsoffive(5)members,all of whom have the necessary experiences and expertise in their respective fields. The current Chairman of the Shariah Advisory Body is Y. Bhg. Dr. Ahmad Shahbari @ Sobri Salamon. The Shariah Advisory Body meets six (6) times during the eighteen (18) months financial period under reviewwithdetailsofmeetings'attendanceofeachmember as follows: Kehadiran/ Attendance 6/6 6/6 6/6 2/3 6/6 Peratus (%)/ Percentage (%) 100 100 100 67 100

Supply of Information to the Board The Board has full and timely access to information with Boardpapersdistributedinadvanceofmeetingstoenable theDirectorstoobtainfurtherexplanation,wherenecessary, in order to be properly briefed before the meetings. The Board papers include the minutes of previous Board meeting, minutes of meetings of all Committees of the Board and reports relevant to the issues of the meetings covering areas such as financial, investment, information technology, operational, human resource and regulatory compliance matters. The Group Managing Director keeps the Board informed, on timely basis, of all material matters affecting the Group's performance and major developments within the Group. All the Board members have unrestricted access to timely and accurate information and access to the advice and services of the Company Secretary, who is responsible for ensuring that Board meeting's procedures are followed and that all applicable rules and regulations are complied with. The Directors can also seek independent professional advice infurtheranceoftheirduties,atTakafulMalaysia'sexpense. Appointments to the Board TheappointmentofnewBoardmembersareconsideredand evaluatedbytheNominationCommitteeandtheCommittee wouldrecommendtheappointmenttotheBoardforapproval. In line with Takaful Act, 1984 and the requirement of Bank Negara Malaysia ("BNM"), the appointment of Directors is subjecttotheapprovalfromBNM.TheCompanySecretary

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Penyata Urus Tadbir Korporat

Corporate Governance Statement

pelantikan pengarah adalah tertakluk kepada kelulusan BNM. Setiausaha Syarikat akan memastikan supaya semua pelantikandilakukandengancarayangbetuldimanasemua maklumat yang diperlukan diperoleh serta semua syarat perundangandanperaturandipenuhi. Jawatankuasa Pemilihan Jawatankuasa Pemilihan kini terdiri daripada empat (4) pengarah Bukan eksekutif [di mana dua (2) daripada mereka adalahPengarahBebas]danseorang(1)PengarahEksekutif. Pengerusi Jawatankuasa kini ialah Encik Zakaria Ismail, seorang Pengarah Bukan Eksekutif Bebas. Jawatankuasa Pemilihan telah bermesyuarat sebanyak lapan (8) kali sepanjang lapan belas (18) bulan tempoh kewangan yang dikajidenganbutirankehadiransetiapahlisepertiberikut: Nama/Name EncikZakariaIsmail(Dilantikpada15Mei2010/appointed on 15 May 2010) EncikJohanAbdullah PuanRozaidaOmar Y.Bhg.Dato'MohamedHassanMdKamil Y.Bhg.Dato'SulaimanMohdYusof Y.A.M.TengkuAzmanIbniAlmarhumSultanAbuBakar (PengarahBukanEksekutifBebas/IndependentNon-ExecutiveDirector) (Bersarapada14Mei2010/Retiredon14May2010) Jawatankuasa Pemilihan telah diberikan mandat oleh Lembaga Pengarah dan terma rujukannya untuk membentang kepada Pengarah cadangan pemilihan ahli Lembaga Pengarah, Pengarah Urusan Kumpulan/Ketua pegawai eksekutif dan pengurus Besar, dan sentiasa mengkaji syarat-syarat pelantikan Pengarah, Pengarah urusan Kumpulan/Ketua pegawai eksekutif dan pengurus Besar. Jawatankuasa Pemilihan juga diberi mandat untuk menilaikeberkesananLembagaPengarah,Jawatankuasanya dan sumbangan setiap Pengarah. Jawatankuasa Pemilihan juga merangka pelan peralihan jawatan bagi Pengurusan Kanan Takaful Malaysia. Penilaian keberkesanan Lembaga pengarah dan Jawatankuasanya iaitu Jawatankuasa pemilihan, Jawatankuasa Ganjaran, Jawatankuasa audit dan Jawatankuasa Pengurusan Risiko di samping sumbangan setiapPengarahtelahdijalankanpadatahunini. will ensure that all the appointments are properly made, all necessary information are obtained, as well as all legal and regulatoryrequirementsaremet. Nomination Committee The Nomination Committee currently consist of four (4) Non-ExecutiveDirectors[two(2)ofwhomareIndependent] andone(1)ExecutiveDirector.ThecurrentChairmanofthe Committee is Encik Zakaria Ismail, an Independent NonExecutiveDirector.TheNominationCommitteemeteight(8) timesduringtheeighteen(18)monthsfinancialperiodunder reviewwithdetailsofmeetings'attendanceofeachmember as follows:

Kehadiran/ Attendance 3/3 7/8 8/8 8/8 6/8

Peratus (%)/ Percentage (%) 100 88 100 100 75

4/5

80

TheNominationCommitteeisempoweredbytheBoardandits termsofreferencearetobringtotheBoardrecommendations as to the appointment of new Directors, Group Managing Director/ChiefExecutiveOfficerandGeneralManagers,and keeps under review the terms of appointment of Directors, GroupManagingDirector/ChiefExecutiveOfficerandGeneral Managers.TheNominationCommitteeisalsoempoweredto assess the effectiveness of the Board, its Committees and thecontributionofeachindividualDirector.TheNomination Committee also discussed the succession plan of the Senior Management of Takaful Malaysia. An assessment of the effectiveness of the Board as a whole and its Committees i.e.NominationCommittee,RemunerationCommittee,Audit Committee and risk Management Committee as well as the contribution of each individual director was carried out duringtheyear.

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Penyata Urus Tadbir Korporat

Corporate Governance Statement

Latihan Pengarah Semua ahli Lembaga Pengarah telah menghadiri Program Latihan Akreditasi Mandatori ("MAP"). Mereka akan terus menghadiri lain-lain program latihan, kursus dan seminar yang relevan untuk mempertingkatkan kemahiran dan pengetahuan mereka dalam menjalankan tugas mereka sebagaiPengarah. Sepanjang tahun ini, para pengarah telah menghadiri pelbagai kursus latihan yang berkaitan dengan Corporate Governance Guide-Towards Boardroom Excellence, Bank negara Malaysia Financial Industry Conference, Financial InstitutionsDirectors'Education(FIDE)Programme,SC-Bursa Malaysia Lecture Series, MInDa Tea Talk, MInDa Flagship programme: Building high performance Directors 2010, MICG updates on the regulatory Framework and Directors Duties 2010, Financial Industry Conference 2010 dan Launch ofSustainabilityProgrammeforCorporateMalaysia.Takaful Malaysia juga terus menyediakan pekeliling BnM, Keperluan PenyenaraianBursaMalaysiayangdikemaskinidanperaturanperaturan baru lain untuk membantu para Pengarah dalam mendapatkanmaklumatmengenaiperkembanganterkini. Pemilihan Semula Tataurusan persatuan Syarikat memperuntukkan agar semua pengarah termasuk pengarah urusan Kumpulan/ Ketua pegawai eksekutif untuk menawarkan diri mereka bagi pemilihan semula sekurang-kurangnya setiap tiga (3) tahun sekali selaras dengan Keperluan penyenaraian Bursa Malaysia. Bagimembantuparapemegangsahammembuatkeputusan, maklumatyangmencukupisepertiprofilperibadi,kehadiran mesyuaratdanpegangansahamdalamSyarikatbagisetiap Pengarahyangbersediauntukpemilihansemuladisediakan dalamLaporanTahunan. GANJARAN PENGARAH Peringkat dan Kandungan Ganjaran Jawatankuasa Ganjaran bertanggungjawab mengesyorkan rangka kerja ganjaran bagi para Pengarah termasuk pakej ganjaranbagiPengarahEksekutifdanPengurusBesarkepada Lembaga Pengarah bagi memastikan Takaful Malaysia mampumenarikminat,memberimotivasidanmengekalkan ahliLembagaPengarahdanPengurusKananyangdiperlukan untuk mentadbir dengan jayanya. Ganjaran para Pengarah adalah sejajar dengan amalan keseluruhan Kumpulan mengenai ganjaran dan imbuhan. Pengarah Eksekutif tidak terlibatdalamapajugacaradalammenentukanganjarannya sendiri. Lembaga Pengarah secara keseluruhannya menentukanganjaranbagiPengarahBukanEksekutif. Directors' Training all Directors have attended the Mandatory accreditation Programme ("MAP"). The Directors will continue to attend other relevant training programmes, courses and seminars to enhance their skills and knowledge in discharging their duties asDirectors. During the year, the Directors attended training courses relatedtoCorporateGovernanceGuide-TowardsBoardroom excellence, Financial Industry Conference, Bank negara Malaysia Financial Institutions Directors' education (FIDe) Programme, SC-Bursa Malaysia Lecture Series, MINDA Tea Talk, MInDa Flagship programme: Building high performance Directors 2010, MICG updates on the regulatory Framework and Directors Duties 2010, Financial Industry Conference 2010andLaunchofSustainabilityProgrammeforCorporate Malaysia. Takaful Malaysia also continued to provide BNM's Circulars, updated Bursa Malaysia Listing requirements and new regulations to assist the Directors in keeping abreast withthelatestdevelopment. Re-election The articles of association provide for all Directors including the Group Managing Director/Chief Executive Officer to submitthemselvesforre-electionatleasteverythree(3)years incompliancewithBursaMalaysiaListingRequirements. Toassistshareholdersintheirdecision,sufficientinformation, such as personal profile, meetings attendance and shareholding in the Company of each director standing for re-electionarefurnishedintheAnnualReport. DIRECTORS' REMUNERATION Level and Make-up of Remuneration TheRemunerationCommitteeisresponsibleinrecommending the remuneration framework for the Directors as well as the remuneration package of executive Director and General Managers to the Board so as to ensure that Takaful Malaysia attracts, motivates and retains the Directors and Senior Managementneededtorunitsuccessfully.Theremuneration of Directors is in line with the Group's overall practice on compensation and benefits. The Executive Director does not participate in any way in determining his individual remuneration. The Board as a whole determines the remunerationofNon-ExecutiveDirectors.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Penyata Urus Tadbir Korporat

Corporate Governance Statement

Yuran para pengarah diluluskan oleh para pemegang saham diMesyuaratAgungTahunan. Jawatankuasa Ganjaran Jawatankuasa Ganjaran kini terdiri daripada tiga (3) orang pengarah Bukan eksekutif, [di mana dua (2) daripada mereka adalah Pengarah Bebas] dan juga seorang (1) Pengarah Eksekutif. Pengerusi Jawatankuasa kini ialah Encik Mahadzir Azizan, seorang Pengarah Bukan Eksekutif Bebas.JawatankuasaGanjarantelahbermesyuaratsebanyak sembilan (9) kali sepanjang lapan belas (18) bulan tempoh kewangan yang dikaji dengan butiran kehadiran setiap ahli sepertiberikut: Nama/Name EncikMahadzirAzizan EncikJohanAbdullah (DilantiksebagaiAhlipada15Mei2010/AppointedasMemberon15May2010) Y.Bhg.Dato'MohamedHassanMdKamil EncikZakariaIsmail (Dilantik pada 15 Mei 2010/appointed on 15 May 2010) Y.A.M.TengkuAzmanIbniAlmarhumSultanAbuBakar (PengarahBukanEksekutifBebas/IndependentNon-ExecutiveDirector (Bersarapada14Mei2010/Retiredon14May2010) Y.Bhg.Dato'SulaimanMohdYusof (ahli sehingga 15 Mei 2010/Memberupto15May2010) Pendedahan ringkasan maklumat mengenai ganjaran para pengarah sepanjang lapanbelas(18)bulantempohkewanganberakhir 31Disember2010adalahsepertiberikut: Pengarah Eksekutif/ Executive Director (RM'000) Yuran/Fees Gajidanlain-lainemolumen/ Salaries and other emoluments Manfaat seumpamanya/ Benefits-in-kind Jumlah/Total 0 5,165 10 5,175 Directors' fees are approved by the shareholders at the AnnualGeneralMeeting. Remuneration Committee The remuneration Committee currently consist of three (3) Non-ExecutiveDirectors,[two(2)ofwhomareIndependent] andone(1)ExecutiveDirector.ThecurrentChairmanofthe Committee is Encik Mahadzir Azizan, an Independent NonExecutive Director. The Remuneration Committee met nine (9) times during the eighteen (18) months financial period under review with details of meetings' attendance of each memberasfollows: Kehadiran/ Attendance 9/9 3/4 9/9 3/4 Peratus (%)/ Percentage (%) 100 75 100 75

4/5 3/5

80 60

Disclosure The details of the remuneration for the Directors for the eighteen (18) months financial period ended 31 December 2010 are as follows: Pengarah Bukan Eksekutif/ Non Executive Directors (RM'000) 721 0 3 724 Jumlah/ Total (RM'000) 721 5,165 13 5,899

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Penyata Urus Tadbir Korporat

Corporate Governance Statement

Ganjaran Pengarah/ Directors' Remuneration

Jumlah Pengarah/ Number of Directors Pengarah Eksekutif/ Executive Director Pengarah Bukan Eksekutif/ Non Executive Directors 1 4 3 8

Dibawah/Below than rM50,000 RM50,001­RM100,000 RM100,001­RM150,000 RM150,001­RM200,000 Melebihi/More than rM200,001 Jumlah/Total PEMEGANG SAHAM Dialog antara Syarikat dan para Pelabur Takaful Malaysia sedar akan kepentingan untuk sentiasa memaklumkan kepada para pemegang saham berkenaan semua perkembangan utama Takaful Malaysia dari semasa ke semasa. Pengerusi dan Pengarah Urusan Kumpulan mengadakan perbincangan dengan pemegang saham sekurang-kurangnya sekali (1) setahun semasa Mesyuarat Agung Tahunan. Selain itu, pelbagai pendedahan dan pengumuman dibuat kepada Bursa Malaysia termasuk keputusan suku tahunan, laporan setengah tahunan dan keputusantahunanbagimemudahkanmenyebaranmaklumat kepada pemegang saham. Tambahan lagi, maklumatmaklumatlainmengenaiSyarikatbolehdiperolehidilaman webTakafulMalaysia,iaituwww.takaful-malaysia.com.my. Mesyuarat Agung Tahunan Mesyuarat Agung Tahunan adalah forum utama bagi dialog dengan pemegang saham. Selain dari agenda biasa untuk Mesyuarat Agung Tahunan, Lembaga Pengarah akan membentangkanlaporanprestasidanpencapaianperniagaan sepertiyangdinyatakandalamLaporanTahunandanmemberi peluang kepada pemegang saham untuk mengemukakan soalanmengenaiaktivitiperniagaanKumpulan. Bagi pemilihan semula para Pengarah, Lembaga Pengarah akan memastikan maklumat sepenuhnya dimaklumkan menerusi notis mesyuarat berhubung para Pengarah yang akan bersara dan mana-mana Pengarah yang menawarkan diriuntukberkhidmatsekiranyadilantiksemula. Setiap perkara urusan khas yang terkandung dalam notis mesyuaratakandisertakandenganpenyatapeneranganbagi resolusi yang dicadangkan untuk memudahkan pemahaman sepenuhnyadanpenilaianterhadapisuberkaitan.

- - - - 1 1 SHAREHOLDERS

Dialogue between the Company and Investors Takaful Malaysia recognizes the importance to keep the shareholderswell-informedofallmajordevelopmentsof TakafulMalaysiaonatimelybasis.TheChairmanandGroup Managing Director hold discussions with shareholders at least once (1) a year during the Annual General Meeting. additionally, various disclosures and announcements made to Bursa Malaysia including quarterly, semi-annual returns and annual results facilitate the dissemination of information to the shareholders. In addition, other information about the Company is available on Takaful Malaysia's website, www.takaful-malaysia.com.my. The Annual General Meeting The annual General Meeting is the principal forum for dialogueswithshareholders.Besidesthenormalagendafor the annual General Meeting, the Board presents the progress andperformanceofthebusinessascontainedintheAnnual report and provides opportunities for shareholders to raise questionspertainingtothebusinessactivitiesoftheGroup. For re-election of Directors, the Board will ensure that full information is disclosed through the notice of meeting regarding directors who are retiring and who are willing to serveifre-elected. Each item of special business included in the notice of the meeting will be accompanied by an explanatory statement for the proposed resolution to facilitate full understanding andevaluationofissuesinvolved.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Penyata Urus Tadbir Korporat

Corporate Governance Statement

AKAUNTABILITI DAN AUDIT Laporan Kewangan Lembaga Pengarah perlu memastikan yang penyata kewangan tahunan dan pengumuman suku tahunan kepada pemegang saham disediakan selaras dengan piawaian perakaunan yang diluluskan dan membentangkan penilaian yang seimbang dan boleh difahami mengenai kedudukan dan prospek Kumpulan. Jawatankuasa Audit membantu LembagaPengarahmemastikanketepatandankelengkapan maklumat dengan mengkaji dan mencadangkan mengguna pakaimaklumatbagitujuanpendedahan. Penyata Tanggungjawab Para Pengarah Berkenaan Penyata Kewangan Menurut Akta Syarikat, 1965, Lembaga Pengarah perlu menyediakanpenyatakewanganbagisetiaptahunkewangan yangmemberigambaranyangbenardansaksamamengenai keadaan urusan hal-ehwal Syarikat dan Kumpulan sehingga akhir tahun kewangan serta penyata hasil dan aliran tunai SyarikatdanKumpulanuntuktahunkewangan. Para Pengarah memberi pertimbangan bahawa, dalam menyediakan penyata kewangan bagi tahun berakhir 31 Disember 2010, Kumpulan telah menggunakan dasar perakaunan yang sesuai, digunakan secara konsisten dan disokong oleh pertimbangan dan anggaran yang wajar dan berhemat. Para Pengarah juga telah mempertimbangkan bahawa kesemua piawaian perakaunan yang berkaitan dipatuhi dan mengesahkan bahawa penyata kewangan disediakanmengikutdasarperniagaanberterusan. Para Pengarah bertanggungjawab memastikan supaya Syarikat menyediakan rekod perakaunan yang secukupnya yang menunjukkan ketepatan yang munasabah mengenai kedudukan kewangan Syarikat bagi membolehkan mereka memastikan agar penyata kewangan tersebut mematuhi keperluan Akta Syarikat, 1965. Para Pengarah mempunyai tanggungjawab secara am untuk mengambil langkah yang munasabah dalam memastikan perlindungan aset Syarikat dan Kumpulan terpelihara dan mengelakkan serta mengesan sebarangbentukpenipuandankesalahanundang-undang. ACCOUNTABILITY AND AUDIT Financial Reporting TheBoardensuresthattheannualfinancialstatementsand quarterly announcements to shareholders are prepared in accordance with approved accounting standards and present a balance and understandable assessment of the Group's position and prospects. The Audit Committee assists the Boardinensuringaccuracyandadequacyofinformationby reviewing and recommending for adoption information for disclosure. Statement of Directors' Responsibilities in Relation to Financial Statements The Directors are required under the Companies act, 1965 topreparefinancialstatementsforeachfinancialyearwhich give a true and fair view of the state of affairs of the Company andtheGroupasattheendofthefinancialyearandofthe incomestatementandcashflowsfortheCompanyandthe Groupforthefinancialyear. The Directors consider that, in preparing the financial statementsfortheyearended31December2010,theGroup has used appropriate accounting policies, consistently appliedandsupportedbyreasonableandprudentjudgements and estimates. The Directors have also considered that all applicable accounting standards have been followed and confirmthatthefinancialstatementshavebeenpreparedon thegoingconcernbasis. TheDirectorsareresponsibleforensuringthattheCompany maintains adequate accounting records which disclose with reasonableaccuracythefinancialpositionoftheCompanyto enablethemtoensurethatthefinancialstatementscomply withtherequirementsoftheCompaniesAct,1965. The Directors generally have the duty to take such steps as arereasonablyavailabletothemtosafeguardtheassetsof the Company and the Group, and to prevent and detect fraud andotherirregularities.

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Penyata Urus Tadbir Korporat

Corporate Governance Statement

Kawalan Dalaman dan Pengurusan Risiko Lembaga Pengarah mengiktiraf tanggungjawabnya dan komited untuk mengekalkan pelaksanaan sistem kawalan dalaman dan amalan pengurusan risiko yang berwibawa. Walau bagaimanapun, sistem tersebut hanya dapat memberikan jaminan berpatutan dan bukannya mutlak daripadasebarangsalahnyataataukerugianketara. Penyata Kawalan Dalaman yang dibentangkan di muka surat64hingga67dalamLaporanTahunaninimemberikan tinjauan menyeluruh mengenai kedudukan kawalan dalaman Kumpulan. Hubungan dengan Juruaudit peranan Jawatankuasa audit dinyatakan di muka surat 40hingga49.MelaluiJawatankuasaAuditLembagaPengarah, Syarikattelahmewujudkanhubunganyangtelusdansesuai denganjuruauditSyarikat,samaadadalamanmahupunluar. Jika perlu, juruaudit luar akan dijemput untuk menghadiri mesyuaratJawatankuasa. PenyatainidibuatselarasdenganresolusiLembagaPengarah bertarikh18Februari2011. Internal Control and Risk Management TheBoardacknowledgesitsresponsibilityandiscommitted in maintaining a sound system of internal control and risk management practice. However, such system can only provide reasonable but not absolute assurance against materialmisstatementsorlosses. The Statement on Internal Control furnished on pages 64 to 67 in the Annual Report provides an overview of the stateofinternalcontrolwithintheGroup. Relationships with the Auditors TheroleoftheAuditCommitteeisasstatedonpages40to 49.ThroughtheAuditCommitteeoftheBoard,theCompany has established transparent and appropriate relationship with the Company's auditors, both internal and external. If required, the external auditors are invited to attend meetings oftheCommittee. This statement is made in accordance with the resolution of theBoardofDirectorsdated18February2011.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Maklumat Pematuhan Tambahan

Additional Compliance Information

1. PENGGUNAAN DANA Terbitan bonus, terbitan hak dan pelaksanaan tawaran persendirian masing-masing telah diselesaikan pada 16 September 2003, 27 Oktober 2003 dan 25 Mac 2005 sementara ESOS telah dilaksanakan pada 3 November 2003. Jumlah dana dari pelaksanaan tawaran persendirian yang berjumlah RM10,878,000 telah digunakan sepenuhnya dalamtahunkewanganberakhir30Jun2005sementara dana dari terbitan hak sebanyak RM77,000,000 telah digunakansepenuhnyadalamtahun kewanganberakhir pada30Jun2009. 2. PEMBELIAN BALIK SAHAM Sepanjang lapan belas (18) bulan tempoh kewangan, tiada sebarang pembelian balik saham dilakukan oleh TakafulMalaysia. OPSYEN, WARAN ATAU SEKURITI BOLEH TUKAR Tiada sebarang opsyen, waran atau sekuriti boleh tukar yang diterbitkan oleh Takaful Malaysia sepanjang lapan belas(18)bulantempohkewangan. PROGRAM AMERICAN DEPOSITORY RECEIPT (ADR) ATAU GLOBAL DEPOSITORY RECEIPT (GDR) Sepanjang lapan belas (18) bulan tempoh kewangan, Takaful Malaysia tidak menaja sebarang program ADR atauGDR. PENGENAAN SEKATAN/PENALTI Tiada sekatan dan/atau penalti yang dikenakan ke atas Takaful Malaysia dan subsidiari, para Pengarah atau Pengurusannyaolehpihakberkuasaberkaitansepanjang lapanbelas(18)bulantempohkewangan. 6. YURAN BUKAN AUDIT Yuran bukan audit yang dibayar kepada juruaudit luar sepanjang lapan belas (18) bulan tempoh kewangan berjumlahRM308,000. 1. UTILISATION OF PROCEEDS The bonus issue, rights issue and private placement exercises were completed on 16 September 2003, 27 October2003and25March2005respectivelywhilstthe ESOSwasimplementedon3November2003. Total proceeds from the private placement exercise of RM10,878,000hadbeenfullyutilisedduringthefinancial year ended 30 June 2005 whilst the rights issue proceeds ofRM77,000,000werefullyutilisedduringthefinancial yearended30June2009. 2. SHARE BUYBACKS During the eighteen (18) months financial period, there werenosharebuybacksbyTakafulMalaysia. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES Nooptions,warrantsorconvertiblesecuritieswereissued by Takaful Malaysia during the eighteen (18) months financialperiod. AMERICAN DEPOSITORY RECEIPT (ADR) OR GLOBAL DEPOSITORY RECEIPT (GDR) PROGRAMME Duringtheeighteen(18)monthsfinancialperiod,Takaful MalaysiadidnotsponsoranyADRorGDRprogramme. IMPOSITIONS OF SANCTIONS/PENALTIES There were no sanctions and/or penalties imposed on Takaful Malaysia and its subsidiaries, Directors or Management by relevant regulatory bodies during the eighteen(18)monthsfinancialperiod. 6. NON-AUDIT FEES There were RM308,000 non-audit fees paid to external auditors during the eighteen (18) months financial period.

3.

3.

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5.

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Maklumat Pematuhan Tambahan

Additional Compliance Information

7. VARIASI KEPUTUSAN Tiadavariasiketaraantarakeputusanuntuklapanbelas (18)bulantempohkewangandankeputusantidakdiaudit yang diumumkan sebelumnya. Takaful Malaysia tidak mengeluarkansebaranganggaran,ramalanatauunjuran keuntunganbagitahunkewangan. JAMINAN KEUNTUNGAN Sepanjang lapan belas (18) bulan tempoh kewangan, tiadajaminankeuntungandiberiolehTakafulMalaysia. KONTRAK PENTING Tidak ada kontrak penting lain, yang bukan merupakan kontrak yang dimeterai dalam perjalanan biasa perniagaan, yang telah dimeterai oleh Takaful Malaysia atausyarikatsubsidiarinyadalamtempohdua(2)tahun sebelumtarikhLaporanTahunanmelainkansepertiyang dinyatakandibawah: i. Perjanjianusahasamabertarikh18Mei2009diantara Takaful Malaysia, pT Syarikat Takaful Indonesia dan Koperasi Karyawan Takaful yang menetapkan terma dansyaratuntukmenguruspegangansahammasingmasingdidalamPTAsuransiTakafulKeluargaakibat daripadastrukturpegangansahamyangbarudiPT AsuransiTakafulKeluargadisebabkanolehsuntikan modal daripada Takaful Malaysia ke dalam pT asuransi TakafulKeluargayangberjumlahRM21,825,000pada 5Mei2009. 7. VARIATION IN RESULTS Thereisnosignificantvariationbetweentheresultsforthe eighteen(18)monthsfinancialperiodandtheunaudited results previously announced. Takaful Malaysia did not release any profit estimate, forecast or projections for thefinancialyear. PROFIT GUARANTEE During the eighteen (18) months financial period, there wasnoprofitguaranteegivenbyTakafulMalaysia. MATERIAL CONTRACTS Therearenoothermaterialcontracts,notbeingcontract enteredintointheordinarycourseofbusiness,whichhas been entered into by Takaful Malaysia or its subsidiary companies within the last two (2) years preceding the date of this annual report other than as disclosed below: i. Jointventureagreementdated18May2009between Takaful Malaysia, pT Syarikat Takaful Indonesia and Koperasi Karyawan Takaful setting out the terms and conditions that will govern their respective shareholdings in pT asuransi Takaful Keluarga arising from the new shareholding structure of pT asuransi TakafulKeluargaasaresultofthecapitalinjectionby Takaful Malaysia into pT asuransi Takaful Keluarga amountingtoRM21,825,000on5May2009.

8.

8.

9.

9.

10. CONTRACTS RELATING TO LOAN 10. KONTRAK BERKAITAN DENGAN PINJAMAN Tiada kontrak berkaitan dengan pinjaman oleh Takaful Malaysia sepanjang lapan belas (18) bulan tempoh kewangan. There were no contracts relating to a loan by Takaful Malaysia during the eighteen (18) months financial period.

11. REVALUATION OF LANDED PROPERTIES 11. PENILAIAN SEMULA HARTANAH Berikutan penggunaan FRS 140, Kumpulan telah mengklasifikasikan beberapa hartanahnya kepada hartanah pelaburan yang sebelum ini diklasifikasikan di bawah hartanah, loji dan peralatan ("PPE") di bawah model kos. Hartanah pelaburan kini dinyatakan pada nilaisaksama,mewakilinilaipasaranterbukaberasaskan penilaian yang dibuat oleh penilai bertauliah yang bebas. Keuntungan atau kerugian yang timbul daripada perubahan nilai saksama hartanah pelaburan diiktiraf dalamakaununtungdanrugibagitempohiaterhasil. With the adoption of FRS 140, the Group has classified some of its properties to investment properties which were previously classified under property, plant and equipment ("PPE") under the cost model. Investment properties are now stated at fair value, representing open-market value based on the valuation performed byindependentqualifiedvaluers.Gainsorlossesarising from changes in fair values of investment properties are recognised in the profit and loss in the period in which theyarise.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Maklumat Pematuhan Tambahan

Additional Compliance Information

12. URUSNIAGA PIHAK BERKAITAN YANG BERULANG / RECURRENT RELATED PARTY TRANSACTIONS Bentuk Urusniaga/ Nature of Transactions Pihak Berkaitan yang Berurusniaga/ Related Parties Transacted with Pihak Berkaitan, kepentingan mereka dan bentuk hubungan dengan Kumpulan Takaful Malaysia/ Related Parties, their interests and nature of relationships with the Takaful Malaysia Group Nilai Urusniaga Sebenar dari 1 Julai 2009 hingga 31 Disember 2010/ Actual Transaction Value from 1 July 2009 to 31 December 2010 (RM'000)

pajakan mesin penyalin Lease of copier machine

SyarikatAl-Ijarah Sdn Bhd (SyarikatAl-Ijarah)

Syarikat Al-Ijarah adalah subsidiari milik penuh BHB. BhB adalah pemegang saham utama Takaful Malaysia yang memegang kepentingan ekuiti Syarikat sebanyak 65.22%pada31Disember2010. Dato' Paduka Ismee Ismail dan Encik Johan Abdullah adalah pengarah BhB dan BIMB dan juga pengarah Takaful Malaysia, yang dilantik oleh BHB. Dato' Paduka IsmeeIsmaildanEncikJohanAbdullahtidakmempunyai sebarang kepentingan langsung atau tidak langsung dalamBHB,BIMBdanTakafulMalaysia. Puan Rozaida Omar adalah Pengarah BHB dan juga PengarahTakafulMalaysia,yangdilantikolehBHB.Dato' Mohamed Hassan Md. Kamil adalah Pengarah Takaful Malaysia, yang dilantik oleh BHB. Puan Rozaida Omar danDato'MohamedHassanMd.Kamiltidakmempunyai sebarang kepentingan langsung atau tidak langsung dalamBHBdanTakafulMalaysia. Syarikat Al-Ijarah is a wholly owned subsidiary of BHB. BhB is a major shareholder of Takaful Malaysia holding an equity interest of 65.22% in the Company as at 31 December2010. Dato' Paduka Ismee Ismail and Encik Johan Abdullah are Directors in BhB and BIMB and are also Directors in TakafulMalaysia,nominatedbyBHB.Dato'PadukaIsmee IsmailandEncikJohanAbdullahdonothaveanydirect orindirectinterestinBHB,BIMBandTakafulMalaysia. Puan Rozaida Omar is a director in BHB and is also a director in Takaful Malaysia, nominated by BHB. Dato' Mohamed Hassan Md. Kamil is a director in Takaful Malaysia, nominated by BHB. Puan Rozaida Omar and Dato'MohamedHassanMd.Kamildonothaveanydirect orindirectinterestinBHBandTakafulMalaysia.

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Maklumat Pematuhan Tambahan

Additional Compliance Information

12. URUSNIAGA PIHAK BERKAITAN YANG BERULANG / RECURRENT RELATED PARTY TRANSACTIONS Bentuk Urusniaga/ Nature of Transactions Pihak Berkaitan yang Berurusniaga/ Related Parties Transacted with Pihak Berkaitan, kepentingan mereka dan bentuk hubungan dengan Kumpulan Takaful Malaysia/ Related Parties, their interests and nature of relationships with the Takaful Malaysia Group Nilai Urusniaga Sebenar dari 1 Julai 2009 hingga 31 Disember 2010/ Actual Transaction Value from 1 July 2009 to 31 December 2010 (RM'000)

Sewabangunan pejabatyang dibayarkepada Takaful Malaysia oleh Bank Islam Malaysia Berhad (BIMB) Rentalofoffice premisespayable to Takaful MalaysiabyBank Islam Malaysia Berhad (BIMB)

BIMB

BIMB adalah subsidiari 51% milik BHB. BHB adalah pemegang saham utama Takaful Malaysia yang memegang kepentingan ekuiti sebanyak 65.22% dalam Syarikatpada31Disember2010. Dato' Paduka Ismee Ismail dan Encik Johan Abdullah adalah pengarah BhB dan BIMB dan juga pengarah Takaful Malaysia, yang dilantik oleh BHB. Dato' Paduka IsmeeIsmaildanEncikJohanAbdullahtidakmempunyai sebarang kepentingan langsung atau tidak langsung dalamBHB,BIMBdanTakafulMalaysia. Puan Rozaida Omar adalah Pengarah BHB dan juga PengarahTakafulMalaysia,yangdilantikolehBHB.Dato' Mohamed Hassan Md. Kamil adalah Pengarah Takaful Malaysia, yang dilantik oleh BHB. Puan Rozaida Omar danDato'MohamedHassanMd.Kamiltidakmempunyai sebarang kepentingan langsung atau tidak langsung dalamBHBdanTakafulMalaysia. BIMBisa51%ownedsubsidiaryofBHB.BHBisamajor shareholder of Takaful Malaysia holding an equity interest of65.22%intheCompanyasat31December2010. Dato' Paduka Ismee Ismail and Encik Johan Abdullah are Directors in BhB and BIMB and are also Directors in TakafulMalaysia,nominatedbyBHB.Dato'PadukaIsmee IsmailandEncikJohanAbdullahdonothaveanydirect orindirectinterestinBHB,BIMBandTakafulMalaysia. Puan Rozaida Omar is a director in BHB and is also a director in Takaful Malaysia, nominated by BHB. Dato' Mohamed Hassan Md. Kamil is a director in Takaful Malaysia, nominated by BHB. Puan Rozaida Omar and Dato'MohamedHassanMd.Kamildonothaveanydirect orindirectinterestinBHBandTakafulMalaysia.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Penyata Kawalan Dalaman

Statement on Internal Control

penyata ini disediakan menurut Keperluan penyenaraian Pasaran Utama Bursa Malaysia Securities Berhad berkaitan dengan pematuhan Kumpulan terhadap prinsip dan peruntukan-peruntukan Amalan Terbaik yang berkaitan dengan kawalan dalaman seperti yang digariskan di dalam KodUrusTadbirKorporatMalaysia("Kod"). TANGUNGJAWAB LEMBAGA PENGARAH Lembaga Pengarah mengiktiraf bahawa mereka bertanggungjawab sepenuhnya terhadap persekitaran kawalan dalaman dan keberkesanannya dalam menjaga kepentingan-kepentingan pemegang-pemegang saham dan aset-asetKumpulan. Sistem kawalan dalaman turut memenuhi keperluan untuk operasi-operasi perniagaan yang berkesan dan cekap, laporankewanganyangbaikdanprosedur-prosedurkawalan, serta pematuhan terhadap undang-undang dan peraturanperaturanyangberkaitan.LembagaPengarahturutmengakui bahawa penyemakan terhadap sistem kawalan dalaman Kumpulan adalah usaha yang jitu dan berterusan, dirangka untuk mengurus dan menghalang risiko kegagalan untuk mencapai objektif-objektif perniagaan. Sewajarnya, sistem kawalandalamanKumpulanturutmemberikanjaminanyang munasabahkeatassalahnyataataukerugianyangketara. PROSES-PROSES KAWALAN DALAMAN UTAMA Proses-proseskawalandalamanutamayangtelahditubuhkan olehLembagaPengarahdalammenyemakkecukupanserta integriti sistem kawalan dalaman termasuk pematuhan kepada undang-undang, peraturan-peraturan, syarat-syarat, arahan-arahan dan garis panduan-garis panduan adalah sepertiberikut: RANGKA KERJA PENGURUSAN RISIKO Lembaga Pengarah mengakui bahawa mengenal pasti dan mengurus risiko utama memainkan peranan penting dan merupakanasasdalammencapaiobjektif-objektifperniagaan Kumpulansertadalammenguruskanoperasihariannya. Bagimencapaiobjektif-objektiftersebut,LembagaPengarah telah menyediakan rangka Kerja pengurusan risiko Seluruh Perniagaan("ERM")dalamKumpulanbagimemastikansupaya wujud proses yang berterusan bagi mengenalpasti, menilai, memantau dan mengurus pendedahan risiko utama yang sememangnyalazimdalamoperasiperniagaannya.Kumpulan telah menubuhkan struktur proses pengurusan risiko yang manaperanansertatanggungjawabLembagaJawatankuasa PengurusanRisiko("RISCO")danJawatankuasaPengurusan Risiko("MRC")adalahdinyatakansecarajelas. This statement is made pursuant to the Main Market Listing requirements of Bursa Malaysia Securities Berhad with regard to the Group's compliance with the principles and Best practices provisions relating to internal controls as stipulated in the Malaysian Code on Corporate Governance ("theCode"). BOARD RESPONSIBILITY The Board acknowledges its overall responsibility for the internal control environment and its effectiveness in safeguardingshareholders'interestsandGroup'sassets. The system of internal control addresses the need for an effective and efficient business operations, sound financial reporting and control procedures, and compliance with relevant laws and regulations. The Board also recognises that reviewing the Group's system of internal control is a concerted and continuing process, design to manage and appropriately mitigate the risk of failure in achieving business objectives. Accordingly, the Group's system of internal control provides reasonable assurance against materialmisstatementorloss. KEY INTERNAL CONTROL PROCESSES The key internal control processes that the Board has established in reviewing the adequacy and integrity of the system of internal control, including compliance with applicablelaws,regulations,rules,directivesandguidelines, are as follows: RISK MANAGEMENT FRAMEWORK The Board acknowledges the identification and the management of principal risks play an important and integral part in achieving the Group's business objectives and the managementofitsdailyoperations. In pursuing these objectives, the Board has put in place an Enterprise Wide Risk Management ("ERM") framework within the Group to ensure there is an on-going process of identifying, evaluating, monitoring and managing the significant risk exposures inherent in its business operations. The Group has established a structured risk management process of which the roles and responsibility ofRiskManagementCommitteeoftheBoard("RISCO")and ManagementRiskCommittee("MRC")areclearlyspeltout.

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Penyata Kawalan Dalaman

Statement on Internal Control

risiko peringkat korporat yang telah dikenalpasti dalam rangka Kerja erM termasuklah risiko strategik, risiko insuran, risiko kewangan dan risiko operasi. Profil risiko terkini yang lengkap telah dikaji/diluluskan oleh rISCo dan MrC pada bulan Ogos 2010 dan seterusnya dikaji pada setiap suku tahun.MenyedaribahawaPengurusanPenerusanPerniagaan ("BCM") adalah komponen penting dalam Rangka Kerja pengurusan risiko secara keseluruhan, Syarikat telah menubuhkanRangkakerjaPengurusanPenerusanPerniagaan padabulanOgos2010.Syarikatjugatelahmenjalankandua ujian pemulihan bencana ke atas kerangka utama sistem teknologimaklumat.Sepanjangtempohkewangan,beberapa ujian simulasi krisis berskala penuh telah dijalankan yang melibatkanpergerakanoperasidariDataranKewanganDarul Takaful (ibu pejabat) dan beberapa cawangan yang lain ke tapakpemulihanterpilih. FUNGSI AUDIT DALAMAN Bahagian Audit Dalaman ("IAD") membantu Lembaga pengarah dan Jawatankuasa audit menjalankan tanggungjawab mereka. Audit Dalaman berfungsi untuk memberikan jaminan ke atas keberkesanan dan kelancaran sistem kawalan dalaman yang dilaksana oleh pihak pengurusan.PelanAuditTahunandibangunkandaripenilaian terhadap kepentingan risiko, pendedahan dan strategi Kumpulan.IADjugamenyiasatkejadianpenipuan,pemalsuan sertamemberikancadangan-cadangankepadaJawatankuasa Audituntukmenghalangpengulangansemula.Perlaksanaan pelan tindakan pengurusan yang dirangka untuk menghalang kelemahan kawalan yang telah diperakui sepanjang tempoh kewangandipantaumelaluikajiansusulan. Jawatankuasa juga mengkaji dan meluluskan pelan audit Tahunan, laporan-laporan serta temuan-temuan termasuk susulanolehAuditDalaman.Merekajugamengkajitindakan yangdiambilkeatastemuan-temuankawalandalamanyang dikenalpasti di dalam laporan-laporan yang disediakan oleh juruaudit luar dan badan-badan penguatkuasaan semasa mesyuarat-mesyuarat mereka serta menilai kesan ke atas keberkesanan dan kecukupan sistem kawalan dalaman Kumpulan. UNSUR-UNSUR KAWALAN DALAMAN UTAMA Unsur-unsur utama kawalan dalaman yang diwujudkan oleh LembagaPengarahbagimenyediakankawalandalamanyang berkesan termasuk pematuhan terhadap undang-undang, peraturan-peraturandangarispanduan-garispanduanadalah sepertiberikut: · Struktur Organisasi Kumpulan telah membentuk sebuah struktur organisasi yang tersusun dengan had-had tanggungjawab dan akauntabiliti yang jelas serta pengagihan kuasa yang bertakrif kepada Jawatankuasa-jawatankuasa Lembaga PengarahdanPengurusan. The corporate level risks identified in the ERM framework include strategic risk, insurance risk, financial risk and operational risk. The complete updated risk profiles were reviewed/approvedbytheRISCOandMRCinAugust2010 andsubsequentupdatesarereviewedonaquarterlybasis. GiventhatBusinessContinuityManagement("BCM")isthe key component of the overall risk management framework, the Company has established a Business Continuity ManagementFrameworkinAugust2010.TheCompanyhas also conducted two IT disaster recovery testings on the productionmainserver.Duringthefinancialperiod,several full scale crisis simulation exercises on business continuity werecarriedoutthatinvolvedthemobilisationofoperation from Dataran Kewangan Darul Takaful (Head Office) and selected branches to the respective designated recovery sites. INTERNAL AUDIT FUNCTION The Internal Audit Division ("IAD") assists the Board and Audit Committee in the discharge of their responsibilities. The internal audit function provides assurance on the efficiencyandeffectivenessoftheinternalcontrolsystems implemented by management. An annual audit plan is developed based on an assessment of risk priorities, exposures, and business strategies of the Group. IAD also investigates incidents of fraud, malpractices and makes necessary recommendation to the audit Committee to impede recurrence. The implementation of management action plans to address the control lapses noted during the financialperiodaremonitoredthroughfollow-upreviews. The Committee reviews and approves the annual audit plan, reportsandfindingsincludingthefollow-upsoftheInternal Auditors. They also review the actions taken on internal control issues identified in reports prepared by External auditors and regulatory Bodies during their meetings and consider the impact on the effectiveness and adequacy of theGroup'sinternalcontrolsystem.

KEY ELEMENTS OF INTERNAL CONTROL The key elements of internal control that the Board has established which provide effective internal controls includingcompliancewithapplicablelaws,regulationsand guidelines are as follows: · Organisational Structure TheGrouphasestablishedawell-definedorganisational structurewithlinesofresponsibilityandaccountability withadefineddelegationofauthorityofCommitteesof theBoardandManagement.

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· Had Kuasa had kuasa yang ditakrif dengan jelas telah diluluskan oleh Lembaga Pengarah dan telah dilaksanakan dalam bidang Pengunderaitan, kelulusan Tuntutan, Pelaburan danprosesperniagaanyanglain. Prosedur Operasi Piawai prosedur operasi piawai yang mengawal seluruh proses perniagaan seperti kewangan, sumber manusia, tuntutan dan pelaburan dalam organisasi telah disemak semula sepanjang tempoh kewangan yang dikaji bagi menyesuaikanperubahanyangberlakupadapersekitaran perniagaan, kehendak penguatkuasaan dan halatuju strategiksyarikat. Rangka Kerja Pembangunan Produk Baru Satu Rangka Kerja Pembangunan Produk Baru telah disediakan dalam bulan April 2010 untuk memastikan bahawakepentingan-kepentinganpemiliksahamadalah dilindungiapabilaproduk-produkbarudiperkenalkan. Fungsi Pematuhan Lembaga Pengarah telah meluluskan Piagam dan rangka Kerja pematuhan yang menggariskan pematuhan urus tadbir dan kaedah pada bulan Ogos 2010. Semua kehendak pematuhan, matriks, prosedur operasi piawai dan garis panduan telah dimuatkan dalam portal Korporat ­BahagianPematuhan.Latihanpengesahanpengkajiansendiriyangberkaitandenganbahagian-bahagiandalam SyarikattelahdijalankanpadabulanDisember2010. Pelan Perniagaan/Pemasaran dan proses Belanjawan Pelan perniagaan/pemasaran serta belanjawan tahunan Kumpulan dibentangkan kepada Lembaga Pengarah untukkelulusan. Laporan Kewangan Akaun pengurusan/laporan dibentangkan kepada Lembaga Pengarah untuk dikaji dan dibincangkan. Penyebaran laporan suku tahunan kepada orang awam dilakukan selepas ia dikaji oleh Jawatankuasa audit dan diluluskan oleh Lembaga Pengarah. Usaha berterusan turut dijalankan untuk menangani isu-isu kawalan kewangan atau risiko-risiko termasuk pengukuhan terhadapprosespenutupankewangandanpelarasan. · · Limit of Authorities Aclearlydefinedlimitofauthoritieshasbeenapproved by the Board and implemented in the areas of underwriting, Claims approval, Investments and other businessprocess. Standard Operating Procedures The Standard operating procedures that govern the key business processes such as finance, human resources, claims, investments, within the organisation have been revised during the financial period to accommodate changes to the business environment, regulatory requirementsandstrategicdirectionoftheCompany. New Product Development Framework A new Product Development Framework has been establishedinApril2010toensurethattheinterestsof all stakeholders are protected when new products are introduced. Compliance Function The Board has approved the Compliance Charter and Framework setting out the compliance governance and methodology in August 2010. All compliances requirements, matrixes, Sops and guidelines are posted in the Corporate Portal ­ Compliance Division. A selfassessment certification exercise involving the various divisions of the Company has been carried out in December2010. Business/Marketing Plan and Budget process TheGroup'sannualbusiness/marketingplanandbudget aresubmittedtotheBoardforapproval. Financial Reporting Managementaccounts/reportsaretabledtotheBoard forreviewanddiscussion.Thepublicreleaseofquarterly reportsismadeafterreviewedbytheAuditCommittee andapprovedbytheBoard.On-goingeffortsareinplace toaddressfinancialcontrolissuesorrisks,whichinclude strengthening the financial closing and reconciliation process.

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Penyata Kawalan Dalaman

Statement on Internal Control

· Sistem Teknologi Maklumat Jawatankuasa pemandu IT Jawatankuasa Pemandu IT telah ditubuhkan untuk mengawasi pembangunan IT yang menyediakan pihak pengurusan pengawalan ke atas fungsi IT di dalam Syarikat. Jawatankuasa Pemandu IT dipengerusikan oleh Pengarah Urusan Kumpulan. Jawatankuasa ini bertanggungjawab untuk meluluskan perbelanjaan berkaitan IT yang besar mengikut had yang telah ditetapkan dan memantau kemajuan projek yang telah diluluskan,merumuskanpolisiandpelanstrategikIT. rangka Kerja pengurusan Data Seperti yang ditentukan oleh Garis panduan BnM, rangka KerjaPengurusanDatatelahditubuhkanpadaNovember 2009.RangkaKerjainimerangkumiproses-prosesserta kawalan-kawalan yang berkaitan dengan sekuriti dan integritidata. Jawatankuasa pemandu projek IT Jawatankuasa pemandu projek IT dipengerusikan oleh Pengarah Urusan Kumpulan. Jawatankuasa yang terdiri dari wakil-wakil daripada IT dan pengguna peniagaan, mengawasi prestasi dan pembangunan projek IT yang berkaitan dengan perniagaan sepanjang tempoh kewangan. KESIMPULAN Walaupun terdapat kelemahan kawalan yang dikenal pasti dalam proses-proses perniagaan tertentu dalam Kumpulan, namun tiada sebarang kegagalan kawalan atau kelemahan ketarayangmenyebabkankerugianbesaryangmemerlukan pendedahandalamlaporantahunanKumpulanbagitempoh kewanganyangdikaji. Penyata ini disediakan selaras dengan resolusi Lembaga Pengarahbertarikh28Mac2011. PENYEMAKAN PENYATA OLEH JURUAUDIT LUAR Seperti yang dikehendaki oleh para 15.23 Keperluan penyenaraian pasaran utama Bursa Malaysia Securities Berhad, Juruaudit luar telah menyemak penyata Kawalan Dalaman ini. Semakan ini telah dilakukan selaras dengan Recommended Practice Guide ("RPG") 5 yang telah dikeluarkan oleh Institut Akauntan Malaysia. Berdasarkan semakan mereka, Juruaudit luar telah melaporkan kepada Lembaga Pengarah bahawa tiada sebarang perkara yang sampai ke perhatian mereka yang boleh menyebabkan mereka menganggap bahawa penyata ini tidak konsisten dengan kefahaman mereka mengenai proses yang diguna pakai oleh Lembaga Pengarah dalam mengkaji semula kecukupandanintegritikawalandalamanKumpulan.RPG5 tidakmemerlukanpertimbanganJuruauditluarsertamereka juga tidak perlu menilai samada penyata ini merangkumi segalarisiko-risikodankawalan-kawalan,ataumemberikan pendapat tentang keberkesanan prosedur-prosedur risiko dankawalan-kawalanKumpulan. · Information Technology System IT Steering Committee ITSteeringCommitteehasbeenestablishedtooversee the development of Information Technology (IT) that provides management an oversight of the IT function within the Company. IT Steering committee is chaired by the Group Managing Director. The committee is responsibleforauthorisingmajorITexpenditureswithin the approved limits, monitoring approved IT projects, formulatingITpoliciesandITstrategicplans. Data Governance Framework AsprescribedbyBNMguidelines,thedatagovernance framework was established in November 2009. The framework covers processes and related controls over datasecurityandintegrity. IT project Steering Committee IT Project Steering Committee is chaired by the Group Managing Director. The Committee consists of representatives from IT and business users, oversees the progress and development of business related IT projectduringthefinancialperiod. CONCLUSION Althoughcontrollapseswereidentifiedforcertainbusiness processes within the Group, there were no significant control failures or weaknesses that has resulted in material loss that requires disclosure in the Group's annual report for thefinancialperiodunderreview. This statement is made in accordance with the Board of Directorsresolutiondated28March2011. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS As required by para 15.23 of Bursa Malaysia Securities Berhad Main Market Listing requirements, the external AuditorshavereviewedthisInternalControlStatement.The review was performed in accordance with recommended Practice Guide ("RPG") 5 issued by the Malaysian Institute ofAccountants.Basedontheirreview,theExternalAuditors have reported to the Board that nothing has come to their attention that causes them to believe that this Statement is inconsistent with their understanding of the process the Board has adopted in the review of the adequacy and integrity of internal control of the Group. RPG 5 does not require the external auditors to and they did not consider whether this Statement covers all risks and controls, or to form an opinion on the effectiveness of the Group's risk and controlprocedures.

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Professional

Oursacrificetoachievethestandardsandpromises thatwedelivertoourcustomers.

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Penyata Pengerusi

Chairman's Statement

Y. Bhg. Dato' Paduka Ismee Ismail

Dengan nama Allah, yang Maha Pengasih, lagi Maha Penyayang, Assalamualaikum Warahmatullahi Wabarakatuh.

Sayadengansukacitanyamembentangkan Laporan Tahunan dan penyata Kewangan yangtelahdiauditbagitahunkewangan ke-25yangberakhirpada31Disember2010.

In the Name of Allah, the Most Compassionate, the Most Merciful, Assalamualaikum Warahmatullahi Wabarakatuh.

ItisagreathonourtobringyoutheAnnual report and audited Financial Statements for thetwenty-fifth(25th)financialyearended 31December2010.

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Penyata Pengerusi

Chairman's Statement

Para Pemegang Saham yang dihormati sekalian, Ini adalah Laporan pertama selepas penjenamaan semula sempena ulang tahun ke-25 Takaful Malaysia pada November2009.SyarikattelahmelabursebanyakRM15 juta bagi kempen yang telah dirancang dan dilaksana dengan lancar. Pengubahsuaian pejabat-pejabat cawangankamitelahberjayameletakkanTakafulMalaysia sebagai Syarikat yang Cergas, Moden dan Bertenaga berlandaskan prinsip Syariah. Objektif kempen adalah untuk memastikan nilai dan jenama Syarikat kekal tinggi pada tahun-tahun yang akan datang. Pelaksanaannya termasuklah:· Pelancaran identiti korporat Takaful Malaysia yang baru telah dikomunikasikan dengan efektif. Identiti baruinidipamerkandi13CawanganPlatinumsertadi semuacawangandiseluruhnegara.Pelanggankami kini boleh pergi ke mana-mana cawangan Takaful Malaysia bagi merasai budaya korporat kami yang mesradanlebihbertenaga. Langkah-langkahproaktifdalammemastikanidentiti barukamilebihmenyerlahjugatelahdiambildengan menukar papan tanda iklan dan papan tanda di semua cawangankami.Pelbagaiaktivititelahdilaksanakan, antaranya pelekat kereta, pengiklanan dan aktiviti yangmelibatkanpihakmedia. Pakaiankorporatbarujugatelahdiperkenalkanbagi menaikkan semangat kakitangan dan membolehkan mereka menjiwai jenama tersebut. Antaranya jaket, pinkolar,lanyard,skafdantalileher. · · Memperkenalkan Pelopor Jenama dan kakitangan contoh yang dapat membimbing dan memberi inspirasikepadarakan-rakanmerekauntuk"menjiwai jenamabaru".Pelopor-peloporjenamainidilatihdan dilengkapi dengan kit latihan untuk memudahkan penyebarannilaiterasjenamadenganefektif. · · Memperkenalkan Manual Jenama bagi memastikan semangat dan pengetahuan tentang jenama disebarkandenganefektifkepadasemuakakitangan. Manual ini menggariskan sikap kakitangan ideal yang diinginkan oleh Syarikat untuk menjadi Pilihan Utama Insurans. Dear Shareholders, This is our first Report to you since we launched our rebranding exercise in conjunction with the 25th anniversaryofTakafulMalaysiainNovember2009.The Company invested RM15 million on a well-planned and smoothly executed campaign and refurbishment of our brancheswhichsuccessfullypositionedTakafulMalaysia asaShariah-compliantCompanythatisYoung, Modern and Energetic. The objective of the campaign strategy was to ensure that the Company's value and brand remainelevatedintheyearstocome.Theimplementation included:· Thelaunchofanewcorporateidentitythateffectively communicated the dynamism of Takaful Malaysia. This new identity is now reflected in all 13 Platinum Branches as well as all other branches throughout thecountry.Ourcustomerscannowwalkintoanyof TakafulMalaysia'sbranchofficeandimmediatelyfeel thewarmthandvibrancyofourcorporateculture. Proactive measures to ensure visibility of the new identityfromoutdoorbillboardstosignagesinallour branches. Various media and on-ground activities such as car stickers, flag lines and advertising were alsoemployed. Attractive corporate attires were introduced to motivate the staff, allowing them to live and wear thenewbrand.Theattiresincludejackets,lapelpins, lanyards,headscarvesandties. Introduction of Brand Leaders -- exemplary staff members who can lead and inspire their colleagues to "live the new brand". These brand leaders have been trained with the necessary skills and new brand communication kits to facilitate effective disseminationofthebrand'scorevalues. Introduction of the Brand Manual to ensure that the passion for and knowledge about the brand are passed down effectively to all employees. This manual details the ideal staff behaviour desired by theCompanyinordertoachieveitsgoalofbecoming the Preferred Choice of Insurance.

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Penyata Pengerusi

Chairman's Statement

Saya juga berbesar hati ingin melaporkan bahawa langkah penjenamaan semula ini telah menghasilkan impakyangpositif,dimanaSyarikatkinilebihmenonjol danmencapaikesedaranjenamayanglebihtinggidalam industri dan pasaran. Keyakinan orang ramai terhadap Syarikat juga meningkat dengan ketara. Selain itu, kita telahberjayamembentukramairakanniagapemasaran silang dengan syarikat-syarikat daripada industri yang berbeza. Takaful Malaysia kini merupakan jenama yang dikenali oleh 1Malaysia serta mempunyai lebih ramai kakitangan, pelanggan dan ejen yang juga bukan beragama Islam. Kami menggunakan kelebihan profil jenama kami yang tinggi untuk membuat perubahan kepada kaedah pemasaran, termasuk memperkenalkan produk"1Malaysia"yangdisasarkankepadamasyarakat berbilangkaum.Inisiatif-inisiatifinimerupakanpetunjuk tahap keseriusan Syarikat dalam menyokong konsep 1MalaysiayangdiperkenalkanolehKerajaan. Identiti baru korporat kami yang dinamik ini juga menyemai rasa bangga dan bersemangat terhadap tugasan di kalangan kakitangan dan ejen Takaful Malaysia. Kami sentiasa mengiktiraf kakitangan kami sebagai aset terbaik dan ianya amat bermakna apabila merekamenjiwaijenamadengansemangatbaruini. Sepanjang kempen penjenamaan semula ini, komitmen kamitetapkekalmalahsemakinkukuh.TakafulMalaysia akan terus memenuhi keperluan insurans semua rakyat Malaysia serta ingin menjadi majikan pilihan. Selain itu, Takaful Malaysia akan sentiasa menjaga kepentingan dan pelaburan para pemegang saham dalam cara yang palingmenguntungkan.

Iamverypleasedtoreportthattherebrandingexercise has had a profound positive effect, as we achieved greater visibility and brand awareness in the industry and the market. Public confidence in the Company has increasedsignificantly.Inaddition,wehavebeenableto establishmanycross-marketingpartnershipswithother companiesfromotherindustries.TakafulMalaysiaisnow afamiliarbrandto1Malaysiawithanincreasednumberof non-Muslim staff, customers and agents. We leveraged on our higher brand profile to make changes to our marketing approach, which includes the introduction of "1Malaysia"productstargetedatourmulti-racialsociety. These initiatives are an indication of the Company's seriousness in supporting the Government's 1Malaysia concept. our dynamic new corporate identity has also infused the staff and agents of Takaful Malaysia with even greater pride and dedication to their duties. We have always recognised our staff as our greatest asset and it is very rewardingtoseehowtheyhaveembracedtherevitalised brand. Throughouttherebrandingcampaign,ourcommitments remainedconstant,evenstrengthened.TakafulMalaysia will continue to satisfy all Malaysians' insurance needs while becoming the employer of choice. Furthermore, Takaful Malaysia will keep on safeguarding shareholders' value and investment in the most profitable manner as possible.

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PENGANUGERAHAN Dalam masa tujuh bulan kempen penjenamaan, Takaful Malaysia telah dicalonkan dan berjaya memenangi beberapa anugerah jenama. Antara anugerah yang dimenangiialah:· Anugerah Global (Kategori Pemenang Intan), bagi Anugerah Global 2009 ke-2 pada bulan Januari 2010.Y.Bhg.Dato'MohamedHassanKamil,Pengarah Urusan Kumpulan, telah dipilih sebagai penerima AnugerahUsahawanBestari. · · Anugerah BrandLaureate dalam Kategori Penjenamaan Korporat bagi Jenama Terbaik dalam Perkhidmatan Kewangan - Insurans Takaful pada bulanMac2010. Anugerah `Pelaksana Termaju Q-Radar' 2010, yang diadakan bersempena Persidangan Alumni TricorRoots Consulting's Trailblazer yang berprestij pada bulanJulai2010.Anugerahinimengiktirafkeupayaan kami dalam melaksanakan program pengurusan risiko yangkomprehensif. Takaful Malaysia dianugerahkan keahlian Kelab Bilion Ringgit The Edge. Kelab Bilion Ringgit serta anugerah tersebut diberikan oleh The Edge, akhbar perniagaan dan pelaburan mingguan unggul di Malaysia. Untuk layak menjadi ahli Kelab Bilion ringgit The edge, Syarikat hendaklah disenaraikan di Bursa Malaysia dengan permodalan pasaran atau perolehansekurang-kurangnyaRM1bilion. Pada 22 Disember 2010, Takaful Malaysia juga merangkul Hadiah Bahasa Kebangsaan Institusi Kewangan 2010 yang dianjurkan oleh Dewan Bahasa dan pustaka (DBp) dengan kerjasama Bank negara Malaysia(BNM). AN AWARD-WINNING YEAR Within seven months of launching the new brand campaign, Takaful Malaysia has won numerous brand awards.Theseincluded:· Global Award (Diamond Winner Category) for the 2nd Global Awards 2009 in January 2010. At this ceremony,Y.Bhg.Dato'MohamedHassanKamil,the Group Managing Director was also named as the recipientofthe"SmartEntrepreneur"Award. BrandLaureate Award in the Corporate Branding Category for Best Brands in Financial ServicesTakafulInsuranceinMarch2010. Most Advanced Implementer of Q-Radar' Award 2010,heldinconjunctionwiththeprestigiousTricorRootsConsulting'sTrailblazerAlumniConferencein July2010.Thisawardrecognizesoursoundcapability in implementing a comprehensive risk management programme. Takaful Malaysia was awarded the membership for The Edge Billion Ringgit Club. The Billion Ringgit Club and accompanying awards are established by The Edge,Malaysia'sleadingbusinessandinvestment weekly.InordertoqualifyforthemembershipofThe EdgeBillionRinggitClub,theCompanyneedstobe listedonBursaMalaysiawithamarketcapitalization orturnoverofatleastRM1billion. On22December2010,TakafulMalaysiaalsoclinched the Financial Institution National Language Prize 2010organisedbyDewanBahasadanPustaka(DBP) incollaborationwithBankNegaraMalaysia(BNM).

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Anugerah-anugerah ini menandakan pengiktirafan terhadap jenama unggul Syarikat, prestasi perniagaan yang membanggakan dan inisiatif-inisiatif CSR yang mulia. Pencapaian yang hebat ini adalah hasil daripada usahakerassertasokonganyangtidakberbelahbahagi daripada kakitangan, walaupun ketika melalui waktuwaktusukar.Inimenandakankomitmendansumbangan mereka ke arah mencapai visi kami untuk menjadi Pilihan Utama Insurans.

These accolades serve to underline the Company's leading brand recognition, outstanding business performanceandnobleCSRinitiatives.Theseremarkable results were attributed to our staff's hard work and unwavering support even during the tumultuous times, an acknowledgementoftheircommitmentandcontribution towardsachievingourvisiontobe"thepreferredchoice forinsurance."

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Penyata Pengerusi

Chairman's Statement

TAHUN TINJAUAN Seperti industri insurans konvensional, industri Takaful kekalkukuhdimanaperniagaannyatidaktergugatakibat kemerosotan ekonomi. Sama ada waktu senang atau susah,orangramaidiseluruhduniaakanberjimatuntuk hari sukar, di samping melindungi diri mereka dengan penyelesaian perlindungan yang terbaik. Aset semasa Takaful Malaysia meningkat kepada RM4.9 bilion di peringkatkumpulan,dariRM4.4bilionpadaJun2009. Walaubagaimanapun,kamiberhadapandenganpesaing yang semakin bertambah. Pada awal September 2010, Bank negara Malaysia telah meluluskan empat lagi lesen takaful keluarga baru kerana terdapat potensi besar untuk terus meningkatkan pasaran takaful/insurans di Malaysia. Empat syarikat Takaful usaha sama tersebut melibatkan syarikat insurans antarabangsa yang besar dan mereka mempunyai nilai perancangan yang kukuh untuk terus memacu pembangunan industri takaful keluarga di Malaysia. Elemen persaingan yang disuntik boleh mempercepatkan lagi pembangunan industri ini danmemperkukuhkankedudukanMalaysiasebagaihab kewanganIslamantarabangsa. Walaupun terdapat pertambahan dalam persaingan, Takaful Malaysia terus berpandangan jauh dan memperkenalkan saluran pemasaran agensi runcit baru sertaprodukberkaitanpelaburan.Produk-produkseperti Takaful myGraduan dan Takaful myInvestmembolehkan syarikat berdiri teguh di antara 5 pemain teratas dalam pasaran Takaful Keluarga daripada kesemua 12 pengendali Takaful untuk jumlah sumbangan keseluruhan danpengurusanaset.Inisiatifdaninovasiproaktifyang dilaksanakan adalah sejajar dengan keseluruhan produk berkaitanpelaburandanpermintaansertatrendpasaran saluran pemasaran yang diperlukan. Dengan adanya pesaing-pesaing baru, insentif-insentif pasaran dapat dipertingkatkan, inovasi produk dan program kesetiaan ditawarkan untuk bekerjasama dengan rakan niaga Bancatakaful; bagi memastikan perniagaan dan syer pasarankamikekalstabil. pada 2010, jumlah premium insurans hayat di Malaysia meningkat 11.9% kepada RM8.42 bilion dari RM7.53 bilionhasilpolisiberkaitanpelaburanyangmerekodkan pertumbuhan sebanyak 26.6%. Peningkatan dalam perniagaan berkaitan pelaburan datangnya daripada perniagaan premium tahunan, yang menunjukkan perubahan dalam strategi oleh syarikat insurans untuk fokus terhadap produk yang tidak memerlukan modal yangbesar. THE YEAR IN REVIEW as with the conventional insurance industry, the Takaful industryremainsarecessionproofbusinessdespitethe economic meltdown. In good and bad times, people around the world tend to save more for that rainy day; while protecting themselves with the best wealth protection solutions available. As a result, Takaful Malaysia's current asset size stands at RM4.9 billion at grouplevelfromRM4.4billionasatJune2009. However, we are faced with increasing number of competitors.InearlySeptember2010,inviewofthevast potential to further enhance takaful/insurance penetration in Malaysia, Bank negara Malaysia issued four new family takafullicences.ThesefourlatestTakafuljointventures involved large international insurance players and they have strong value propositions to further drive the development of the family takaful industry in Malaysia. These competitive elements injected into the industry will surely accelerate the pace of industry development and reinforce Malaysia's position as an international Islamicfinancialhub. Despite the influx of competition, Takaful Malaysia's foresightinintroducingitsnewretailagencydistribution channel and investment-linked products; Takaful myGraduan and Takaful myInvest has allowed the company to stand firm, in the top 5 position within the Family Takaful market -- amongst all 12 Takaful operators for both total contributions and assets under management. The proactive foray of initiatives and innovations implemented were in parallel to the overall market demands. With the newly injected contenders, heightened marketing incentives, product innovations and loyalty programmes were also offered to partnering Bancatakaful partners to ensure that our business partnershipandultimately,marketshareremainsstable. In 2010, the total life insurance premiums in Malaysia grew by 11.9% to RM8.42 billion from RM7.53 billion duetotheinvestment-linkedpolicies,whichrecordeda 26.6% growth. In particular, the growth of investmentlinked business came from annual premium businesses, signifyingtheswitchinstrategybyinsurerstofocuson lesscapital-intensiveproducts.

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Bagi perniagaan premium tahunan individu, premium tahunan untuk polisi berkaitan pelaburan melebihi polisi tradisional dengan pertumbuhan sebanyak 37.8% berbandingpertumbuhansebanyak3.3%untukinsurans tradisional. Walaupun jumlah pelanggan yang menyedari kepentingan insurans hayat kini semakin meningkat, jumlahkeluarannegarakasarbagiinsuranshayatadalah 2.8%, iaitu peratusan yang agak rendah berbanding Singapura (6.1%) dan Jepun (7.5%). Kerajaan berhasrat untukmeningkatkanangkainikepada4%(75%daripada populasi) menjelang 2020 dengan memperkenalkan pelbagaiinisiatifmelaluiProgramTransformasiEkonomi (ETP). Meskipunberhadapandenganpelbagaicabaran,Takaful Malaysiamemandangianyasebagaisatupeluanguntuk mengembangkan perniagaan Takaful keluarga dan am. Dengan pelbagai inisiatif yang telah dirancang oleh Kerajaan semasa tahun yang ditinjau, kami optimis bahawa industri ini akan mencapai pertumbuhan 12% hingga 15%, manakala kadar pertumbuhan Takaful Malaysia dijangkakan melebihi kadar pertumbuhan industri melalui pelaksanaan strategi kami dan pemasaran produkyangtelahdiaturdengantepat.Inimungkindapat dicapai memandangkan kadar penembusan insurans konvensional adalah sebanyak 43% berbanding hanya 11%sahajauntukTakaful. Sektor insurans am pula berkembang maju pada tahun 2010 dan dijangka akan tumbuh dengan pesat pada tahun 2011 dan seterusnya. Sektor insurans Perubatan danKesihatan(MHI)kekalkukuhdarisegipertumbuhan yangdipacuolehkesedaranpenggunayangbertambah dan keperluan perlindungan yang tinggi daripada kos perubatandanperkhidmatanpenjagaankesihatanyang semakin meningkat. Pelan insurans perubatan untuk pekerjaasingjugaakanmendorongpertumbuhansektor MHIini.

For individual annual premium business, annualised premium for investment-linked policies outpaced traditional policies by growing at a strong 37.8% comparedtoagrowthof3.3%fortraditional. Althoughwiththeincreasingnumberofconsumerswho are aware of the importance of life insurance, the current grossdomesticproductforlifeinsurancestandsat2.8%, which is relatively low as compared with other countries likeSingapore(6.1%)andJapan(7.5%).TheGovernment intendstoincreasethisfigureto4%(75%ofpopulation) by 2020 with the various initiatives based from the EconomicTransformationProgramme(ETP). Despite challenges, Takaful Malaysia sees it as an opportunity to grow the family and general Takaful businesses. With the various initiatives lined up by the Government for the year, we are fairly optimistic that the industry will achieve a 12% to 15% growth while for Takaful Malaysia, a growth rate beyond the industry via deployment of our pipelined strategies and niche products. This is evidently possible, since the nation currently sees a conventional insurance penetration rate of43%whileforTakafulatonly11%. On the flip side, the general insurance sector was bullishin2010andagain,expectedtoacceleratein2011 and beyond. The Medical and Health Insurance (MHI) sector remains strong in terms of growth driven by growing consumer awareness and an increasing need for protection against escalating costs of medical and health care services. The recently-announced medical insurance plan for foreign workers would add impetus to theMHIsector.

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Penyata Pengerusi

Chairman's Statement

Industri insurans am merekodkan RM11.52 bilion dalam premium kasar langsung pada 2009, menandakan pertumbuhansebanyak5.7%berbanding2008.Sehingga suku tahun ketiga 2010, premium kasar langsung dianggarkan berjumlah RM9.67 bilion, menunjukkan pertumbuhan sebanyak 9% berbanding tempoh sembilan bulan yang sama pada tahun sebelumnya. Takaful Malaysia menduduki tempat kedua dalam arena TakafulAmdankamiakanterusberusahauntukmerebut kedudukannomborsatu. Walaupun kancah yang berlaku di negara-negara yang mempunyai kedudukan ekonomi kukuh seperti amerika Syarikat, Jepun dan eropah merupakan faktor luaran, reaksi pasaran saham tempatan ke arah sentimen sedemikian mungkin mempunyai impak tidak langsung terhadap industri.Situasiinibolehmenjejaskanpermintaanluaran yangakhirnyamempengaruhipenggunadalammembuat keputusandanmenyukarkanprosesjualan. Walau bagaimanapun, keyakinan pengguna di Malaysia berada dalam kedudukan yang lebih tinggi disertai dengan persekitaran kadar faedah rendah yang akan memberikan dorongan baru bagi pengguna untuk mencari produk bermutu tinggi seperti insurans. Keyakinan pengguna meningkat 4 mata kepada 107 mata pada suku keempat 2010, merupakan tahap tertinggi sejak suku ketiga 2006, menurut penemuan terkini oleh Indeks Keyakinan Pengguna Global Nielsen pada awal tahun ini. Penerimaan baik produk Takaful Malaysiaoleh1Malaysiajugabertambahdanmemberikan perolehanyanglebihtinggi.Padatahun2006,Kerajaan telahmelancarkanPusatKewanganIslamAntarabangsa Malaysia (MIFC) untuk mempromosikan Malaysia sebagai hab utama kewangan Islam Antarabangsa denganlebihagresif.Takafulmenjadibahagianpenting

The general insurance industry recorded RM11.52 billion in gross direct premium in 2009, representing a growth of 5.7% over 2008. Up to the third quarter of 2010, gross direct premium estimated were at RM9.67 billion,representingagrowthof9%overthesameninemonth period the previous year. Currently positioned atthenumbertwointheGeneralTakafularena,Takaful Malaysiawillcontinuouslyworkhardtogainthenumber onespot. Whileitisanexternalfactor,thequagmireprevailingin the established economies of the United States, Japan, europe and the reaction of the local share market towards such sentiments may have an indirect impact on the industry. It can cause a slowdown on external demandthatwilleventuallyinfluenceconsumersinterms ofdecision-making,thusmakingsalesmoredifficult. Nonetheless,consumers'confidenceinMalaysiawason the uptrend coupled with low interest rate environment that would provide a fresh impetus for consumers to seek high-yielding products like insurance. Consumers' confidence rose 4 points to 107 points in the fourth quarter of 2010 to reach its highest level since the third quarter of 2006 according to the latest findings of Nielsen Global Consumer Confidence Index early this year. Favourably, the acceptance of Takaful Malaysia products by 1Malaysia was also on the uptrend with an endresultofhigherturnover.In2006,theGovernment launched the Malaysia International Islamic Finance Centre (MIFC) to aggressively promote Malaysia as a major hub for international Islamic finance. Takaful seems to have become a fundamental part of the insurance landscape and is growing from strength to strength. With the liberalisation of the financial sector announced last year by the Prime Minister, the Takaful

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dalam landskap insurans dan kedudukannya terus mengukuh.Melaluilangkahliberalisasisektorkewangan yang diumumkan oleh perdana Menteri pada tahun lalu, pasaranTakafuldijangkaakanmengalamipertumbuhan pesat. Pertumbuhan sebanyak 20-25% setahun ini melebihi jangkaan kami kerana pada masa sekarang ianyamerupakanpasaranbaruyangmasihmelaluiproses pengukuhan. Dalam persekitaran yang lebih berdaya saing, Takaful Malaysia komited untuk meneruskan inovasi produk dan keunggulanperkhidmatandalammemberikhidmatyang lebihbaikkepadamasyarakatmelaluirangkaianterbaik dan produk berkualiti. Maka, Takaful Malaysia telah mengukuhkan rangka kerja pembangunan produknya untukmenyediakankaedahyanglebihteratur,berdisiplin dan bersemangat. Rangka kerja yang lebih agresif akan membolehkan syarikat memperkenalkan produk inovatif yang memfokuskan kepada keperluan pengguna dan memberi kedudukan nilai yang lebih baik kepada pelanggan. pada masa yang sama, kami memastikan kedudukan kewangan syarikat akan kekal mantap dan menyepadukan amalanpengurusanrisikoyanglebihbaik.Rangkakerja yang dipertingkatkan ini juga disokong oleh pelaburan kami dalam pembinaan IT dan pembangunan modal insan. Pelaksanaan yang sedang berjalan bagi produk danstrategisaluranpemasarandibawahrangkakerjaini akanmembolehkansyarikatmenunjukkanprestasiyang baikdalampersekitaranyangkompetitifini. Sejak 18 bulan yang lalu, kami telah meningkatkan persekitaran operasi Takaful Malaysia dengan nyata. Beberapa inisiatif telah diambil untuk memperbaiki persekitaran operasi yang secara asasnya melibatkan penambahbaikandanpenyelesaianperalatanyangtidak digunakandantelahwujudsejaksedekadlalu. Tahunlalu,kamimelaksanakanstrategiITyangmemberi nilai pelaburan IT dan kekal efektif untuk tahun-tahun yangakandatang.Kamitelahmemulakansatusiriinisiatif baru untuk menangani kekurangan semasa memenuhi objektifkamiuntuktahun-tahunakandatang. Selain itu, kami juga melaksanakan inisiatif untuk memperbaikisistemoperasitermasuklah:· MenggantikanPortalWebKorporatdenganMicrosoft Sharepoint yang terkini dan disempurnakan di peringkatdalaman; market is expected to experience rapid growth. This growth is beyond our projection of 20-25% per annum becausethereisatpresent,anascentmarketwhichisin theprocessofbuildingup. Inthismorecompetitiveandvibrantenvironment,Takaful Malaysia is committed to continue product innovation and service excellence to serve the public with the best range and quality of products. Therefore, Takaful Malaysia has strengthened its product development framework to provide a more structured, disciplined and robustapproach.Themorerobustframeworkwillenable the company to introduce innovative products focusing onconsumerneedsanddeliverbettervaluepropositions forthecustomers. at the same time, we are ensuring that the company remains financially strong and incorporating better risk management practices into the product development process.Thisenhancedframeworkisalsosupportedby our investment in IT and human capital development. Ongoingimplementationoftheproductanddistribution channel strategies under the framework will enable the company to perform well in this competitive environment. Overthelast18months,wehavesignificantlyimproved Takaful Malaysia's operating environment. Several initiatives have taken place to improve the operating environment which basically involved the refresh of obsolete equipments and solutions that have been in placeoverthelastdecade. Last year, we proceeded to implement an IT strategy that would extract the most value out of our IT investments and remains effective in the coming years. We have embarked on a series of new initiatives to address the currentshortfallsinordertomeetourobjectivesinthe comingyears. on top of that, we have also implemented initiatives to improvetheoperatingenvironmentwhichincluded:· ReplacingtheCorporateWebPortalwiththelatest Microsoft Sharepoint which was accomplished inhouse;

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· Membangunkan Portal Intranet sebagai platform komunikasi kepada semua kakitangan di seluruh rangkaian Takaful Malaysia. Penyelesaian ini juga menggunakanMicrosoftSharePoint; Virtualisation perkhidmatan IT untuk memenuhi permintaan dan keperluan perniagaan yang semakin bertambah.Pelayarmayadapatdirekadandigunakan dengancepatapabiladiperlukan; Melengkapi kakitangan IT dengan latihan untuk menyokong perkembangan perniagaan dan menyediakan perkhidmatan yang lebih baik. Semua jawatanpengurusdanyanglebihtinggidikehendaki menghadiri kursus pensijilan IT serta latihan kepimpinandalamjangkamasayangditetapkan; Menyediakan latihan teknikal yang berkaitan untuk kakitangan seperti pensijilan Microsoft, pengaturcaraanJavadanpengaturcaraanOracle. · Developing the Intranet Portal as a communication platform for all our internal staff throughout the TakafulMalaysia'snetwork.Thissolutionisalsoriding onMicrosoftSharePoint; VirtualisationofITservicesinordertocopewithour growingbusinessdemandsandneeds.Virtualservers canbequicklycreatedanddeployedasrequired; Equipping IT staff with training in order to support business growth and provide better service. All managers and above are required to attend IT certification as well as leadership training courses withinafixedtimeframe; Providing appropriate staff members with relevant technical training e.g. Microsoft certification, Java programmingandOracleprogramming.

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Untuk terus meningkatkan keberkesanan dan kecekapan operasi, Takaful Malaysia akan melaksanakan Pengimbasan Dokumen dan pemprosesan aliran kerja automatikuntuksemuaprosesoperasipadatahun2011. Kami juga telah bertindak untuk mengukuhkan pematuhan dan tata urus korporat dengan pelaksanaan sepertiberikut:· Piagam Pematuhan dan Rangka Kerja proses dan prosedur bagi memastikan semua proses sedia ada dan yang akan datang mematuhi keperluan dan pengawalanberkanun; Matriks Pematuhan bagi memastikan semua garis panduan Bank negara Malaysia dikendalikan dan dimiliki oleh bahagian dan jabatan yang berkenaan untuk memudahkan pematuhan dan pengisytiharan pengesahanpematuhan; Merakam keluar dan mengisytiharkan "Pengesahan Ketakpatuhan" oleh semua bahagian dan jabatan yang bertanggungjawab terhadap pematuhan pada setiapsukutahunkepadaparaPengarah; Mengemas kini dan menyemak semula Prosedur Operasi Standard (SOP) di semua bahagian dan jabatan bagi memastikan perubahan dalam struktur organisasi dan peranan kerja, pelaksanaan sistem baru, had pihak berkuasa dan produk serta proses barudiambilkiradandikemaskini;

To further enhance operational effectiveness and efficiency, Takaful Malaysia will implement Document Scanning and automated workflow processing for all operationalprocessesinyear2011. We have also acted to strengthen compliance and corporate governance by putting the following in place:· AComplianceCharterandFrameworkofprocesses and procedures to ensure all existing and future processes comply with statutory and regulatory requirements; AComplianceMatrixtoensurethatallBankNegara Malaysia'sguidelinesaredulyassignedandownedby the relevant divisions and departments to facilitate due compliance and declaration of confirmation of duecompliance; Sign off and declaration of No-Non Compliance Confirmationbyalldivisionsanddepartmentsofdue complianceeachquartertotheBoardofDirectors; Updating and revising of the Standard Operating procedures (Sops) of all divisions and departments to ensure that changes in organisational structures and job roles, new systems implemented, authority limits and new products and processes are captured andupdated;

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Portal Pematuhan yang menggariskan semua keperluanpematuhanyangbolehdiaksesolehsemua kakitangan.

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A Compliance Portal detailing all compliance requirementswhichisaccessiblebyallstaff.

Bagi Sumber Manusia pula, Takaful Malaysia telah melantik pricewaterhouseCoopers untuk melaksanakan projek Ganjaran Penjanaan Semula pada April 2010. Objektif projek ini adalah untuk meningkatkan usaha kami untuk menarik, mengekal dan memberi motivasi kepadakakitangan,terutamanyayangberpotensidalam Syarikat, sejajar dengan janji jenama; Muda, Moden dan Bertenagasertadaripadamaklumbalasyangdikumpulkan daripadaKajiSelidikPenglibatanKakitanganTahun2009 (EES). Projek ini berjaya diselesaikan pada September 2010 dan menghasilkan penggredan kerja dan struktur penggajianyangbaru,kenaikanpangkat,pelarasangaji danpengenalankepadaSkimPengekalanBonus. MENCAPAI SASARAN Takaful Malaysia menetapkan sasaran untuk meningkatkan bahagian pasaran berdasarkan saiz aset semasa tahun kewangan dalam tahun yang ditinjau. Untuk mencapai sasaranini,kamitelahmelancarkanbeberapastrategi:Dana Simpanan agensi pada Mac 2010, Takaful Malaysia telah melancarkan Dana Simpanan agensi (apF) selain daripada model agensitigatingkatsertatigaprodukTakafulyangbaru iaitu Takaful myGemilang, Takaful myInvest dan Takaful myGraduan. APFadalahskimpersaraanyangdibentukuntuksemua ejen syarikat supaya mencarum ke dalam akaun persaraan khas yang membolehkan mereka untuk bersedia ke aras gaya hidup persaraan yang selesa. Pengenalan apF ini menandakan permulaan pelan Syarikat untuk meningkatkan tenaga agensinya secara agresif pada 2010 dalam usahanya untuk merebut pasaran Takaful

on the human resource front, Takaful Malaysia had engagedPricewaterhouseCooperstoimplementtheReenergizingRewardsprojectinApril2010.Theobjective of this project is to enhance our efforts to attract, retain and motivate the staff, especially key talents within the Companyinlinewiththebrandpromise;Young, Modern and Energeticaswellasthefeedbackconsolidatedfrom theYear2009EmployeeEngagementSurvey(EES).The project was completed in September 2010, resulting in anewjobgradingandsalarystructure,staffpromotion, salary adjustment and introduction of a retention Bonus Scheme. MEETING OUR TARGETS Takaful Malaysia set a target of increasing the market sharebasedonassetsizeduringthefinancialyearunder review.Inordertoachievethis,wehaveputinplacea numberofstrategies:agency provident Fund In March 2010, Takaful Malaysia launched the agency Provident Fund (APF) in addition to the three-tier agency model as well as three new Takaful products namely; Takaful myGemilang, Takaful myInvest and TakafulmyGraduan. The apF is a form of retirement scheme created for company's agents to contribute into a special retirement account, which will enable them to prepare for a comfortable retirement lifestyle. The introduction of the apF marked the start of the Company's plan to aggressivelyenhanceitsagencyforcein2010,initsbid to capture the growing Takaful market. The APF offers

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yang sedang berkembang. APF ini menawarkan ejen TakafulMalaysiamanfaattambahansertameningkatkan kesetiaanduahaladenganSyarikat. Tambahan pula, pelancaran APF terbukti tepat pada masanya berikutan pengumuman kerajaan baru-baru ini mengenai Skim Persaraan 1Malaysia bagi 2 juta usahawan. Syarikat mengiktiraf betapa pentingnya ejen dalam perniagaan Takaful kerana Syarikat sedar wujudnya persaingan pasaran yang sengit dalam merekrut ejenejen terutamanya selepas persatuan Takaful Malaysia mengeluarkan peraturan yang berkuat kuasa 1 Januari 2009. Menurut peraturan tersebut, bakal ejen perlu lulusPeperiksaanAsasTakaful(TBE)danmembenarkan setiap ejen menandatangani dua prinsipal am dan satu PrinsipalKeluarga. Akhir sekali, Takaful Malaysia juga sedar bahawa ejen yang berpengalaman mungkin akan diambil oleh syarikat-syarikatyangbarusahajamenyertaiindustridan ianya bakal menjadi ancaman sekiranya ejen tersebut tidak dilatih dan dibekalkan dengan kemahiran dan pengetahuanyangbetul.Olehitu,menjelangsukutahun keempat2011,syarikatakanmembuatpelancaranrasmi pusatpembelajaranberasaskanagensibagimelatihdan yang penting sekali, melaksanakan modul serta skim apF yangsediaada. Selain daripada inisiatif taktikal untuk menggalakkan kesetiaan di kalangan agensi runcit Takaful Malaysia, banyakusahajualandanpemasaranberteraskaninsentif jugadilaksanakansepanjangtahun2010.Namunbegitu, usahamerekrutejen-ejenyangdijalankansecaraagresif pada2010akanditeruskanpada2011danseterusnya.

Takaful Malaysia's agents an added benefit as well as enhances a "two-way" sense of loyalty between the Companyanditsagents. Furthermore,thelaunchoftheAPFprovedtobequite timely, following the recent government announcement of the 1Malaysia retirement Scheme for 2 million entrepreneurs. recognising the importance of agents in the Takaful business, the Company is very mindful of the stiff competition in the agency recruitment market, particularly in light of rulings issued by the Malaysia Takaful Association beginning 1 January 2009. These rulings require potential recruits to pass the Takaful Basic examination (TBe) and allow each agent to sign up with twoGeneralPrincipalsandoneFamilyPrincipal. Finally, Takaful Malaysia was also aware that talent poaching from the newly injected operators into the fraternity would soon serve as possible threats; if its current talents are not constantly nurtured and enhanced withtheproperskillsandknowledge.Therefore,byQ4 of 2011, the company will officially launch its agency based learning centre to deploy its coaching and most importantly, retention modules alongside the existing APFscheme. Besides the tactical initiatives to impel loyalty amongst the Takaful Malaysia's retail agency force, many sales and marketing driven incentives were deployed throughout 2010. Nonetheless, the recruitment efforts were aggressivein2010andwillpersistin2011andbeyond.

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pusat Takaful myCare dan Takaful myDesks Untuk memberi perkhidmatan yang lebih baik kepada para pelanggan, strategi Takaful Malaysia juga merangkumi penyusunan semula operasi keseluruhan yang mempunyai 31 buah cawangan, 7 Pusat Takaful myCare, 1 pusat runcit dan 5 Takaful myDesks di seluruh negara. Syarikat juga bergantung kepada infrastruktur kumpulan Tabung Haji untuk menyediakan kios, iaitu saluran Takaful myDesks bagi memasarkan produk dan menyediakan kaunter perkhidmatan pelanggan, sekaligus membolehkan Syarikat mengemaskini operasi perniagaan dan lebih fokus terhadap perkhidmatan pelanggan. Produk kami akan lebih mudah didapati oleh orang ramai pelanggan melalui pelbagai rangkaian produk yang ditawarkan oleh Bank Islam dan Tabung Haji. Yang penting, pelanggan kami akan mendapat manfaat daripadapertambahanpencapaianyangdipertingkatkan untukprodukTakafulMalaysia. perkongsian dengan syarikat telekomunikasi Takaful Malaysia berpadu tenaga dengan salah sebuah syarikat telekomunikasi utama Malaysia bagi melengkapkan ejen-ejen kami dengan penyelesaian mudahalihkearahkecekapanyanglebihbaik.Melaluiskim ini,penyelesaiankomunikasidanpenyelesaianjalurlebar digabungkandandisediakanuntukkakitangan,pengedar dan rakan kongsi perniagaan bagi mendapatkan kos dan kecekapan perniagaan yang lebih baik di samping memperkayakanpengalamanpelanggan. Sempena pelancaran keupayaan jualan secara mudah alih atau e-point, penyelesaian yang diguna pakai ini menjadiasasyangbaikuntukterusmembantupengedar kami di semua saluran dalam mempercepatkan premium pemegangpolisidanpenghantaransijil.TakafulMalaysia berhasrat untuk memudahkan semua pengedarnya dengan keupayaan memeriksa status polisi pelanggan darijauhmenjelangakhirtahun2011. Usaha sama yang berguna ini membolehkan Takaful Malaysia menggunakan jalur lebar dan perkhidmatan internet berkelajuan tinggi sepenuhnya sebagai asas sistem jualan untuk mendapatkan sekurang-kurangnya 2,000ejenbaru. Dengan kecekapan yang lebih tinggi kini disuntik dalam semua aspek perniagaan, Syarikat yakin ia boleh menceritakan tentang faedah Takaful kepada semua rakyatMalaysiadiseluruhnegara. Takaful myCare Centres and Takaful myDesks Inordertoserveourcustomersbetter,TakafulMalaysia's strategy also included restructuring its overall operations into31branches,7TakafulmyCare Centres, 1 retail Centre and 5 Takaful myDesksacrossthecountry.TheCompany leveraged on the Tabung Haji group infrastructure to provide kiosks, namely the Takaful myDesk channel to market our products and provide customer services thus enablingourCompanytobetterstreamlinethebusiness operationsandbemorecustomer-centric. Our products will now be further accessible to a much wider audience with both Bank Islam and Tabung Haji offering an expanded range of products. Most importantly,ourcustomerswillbenefitfromtheincreased accessibilityofTakafulMalaysia'sproducts. partnership with Telco Takaful Malaysia joined forces with one of Malaysia's leadingtelcocompaniestoarmouragentswithmobile solutions for greater efficiency. Under this scheme, bundled mobile voice and broadband solutions are provided to staff, distributors and business partners to createbettercostandbusinessefficiencywhileenriching customerexperience. With the upcoming launch of the mobile or e-point sales capability, these implemented solutions served as a good foundation to further assist our distributors acrossallchannelsinexpeditingtheircertificateholders' contributions and certificate submissions. Takaful Malaysia aims to empower all its distributors with the capability to check their customers' certificate status remotely,byend2011. This fruitful partnership will allow Takaful Malaysia to fullyutilisetheBroadbandandEDGEhigh-speedinternet services as a foundation sales point system to recruit at least2,000newagents. Withgreaterefficiencyinjectedintoeveryaspectofthe business,theCompanyisconfidentthatitcanreachout toMalaysiansnationwideaboutthebenefitsofTakaful.

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TINJAUAN KEWANGAN PRESTASI KUMPULAN Untuktempoh18bulanberakhir31Disember2010,Takaful Malaysia mencatatkan kenaikan97% dalamkeuntungan keseluruhannya,dariRM49.7jutayangdirekodkanpada tahun kewangan lalu kepada RM97.9 juta. Pendapatan operasi menunjukkan peningkatan 65% dari RM1,049.1 juta pada tahun kewangan lalu kepada RM1,728.6 juta, hasil daripada sumbangan kasar dan pendapatan pelaburan yang lebih tinggi. Hasil yang lebih baik ini, walaupun dalam tempoh kewangan selama 18 bulan, adalah sumbangan usaha keras dan komitmen pasukan kami, keupayaan saluran pengedaran tambahan yang barusertakelebihankamiberbandingpengendaliTakaful yanglainmelaluimodelMudharabah.Sayaberbesarhati menyatakan bahawa sehingga kini, Takaful Malaysia masihterusmembayarMudhrabahsebanyak15%kepada semua peserta produk Takaful am dan Takaful Keluarga yang terpilih, sekiranya tiada tuntutan dilakukan semasa tempohperlindungan. Keuntungan yang baik ini berjaya dicapai hasil yuran wakalahyanglebihtinggiyangdiperolehidanpindahan lebihanyanglebihtinggidaripadakedua-duaperniagaan Takaful Keluarga dan Takaful Am. Lebihan yang lebih tinggidaripadakedua-diaperniagaantersebutdisokong olehlabayanglebihtinggidaripadapelaburan. PRESTASI SYARIKAT Keuntungan Takaful Malaysia sebelum zakat dan cukai sebanyak RM93.0 juta bagi tempoh 18 bulan yang berakhir 31 Disember 2010, iaitu peningkatan 103% berbanding tahun kewangan lalu, yang berjumlah RM45.8juta.Keuntunganyangmeningkatini,walaupun dalam tempoh kewangan selama 18 bulan, dicapai hasil daripada yuran wakalah yang tinggi dan pindahan lebihanyanglebihtinggidaripadakedua-duaperniagaan TakafulKeluargadanTakafulAm.Labayanglebihtinggi daripada pelaburan menyumbang kepada lebihan yang lebihbanyakdaripadakedua-duaperniagaanTakaful. pendapatan operasi Syarikat merekodkan peningkatan 65%dariRM871.1jutasemasatahunkewanganlalukepada RM1,440.7 juta. Sumbangan kasar meningkat kepada RM1,179.3 juta dari RM709.3 juta pada tahun kewangan sebelumnya. Perniagaan Takaful Am merekodkan prestasi kukuh, berkembang 81% dari RM276.3 juta kepadaRM499.5juta.BagiperniagaanTakafulKeluarga, sumbangankasarberkembang57%dariRM433.0jutake RM679.8 juta melalui pertumbuhan perniagaan Takaful gadaijanji. FINANCIAL OVERVIEW GROUP PERFORMANCE For the 18 months period ended 31 December 2010, TakafulMalaysiarecordeda97%improvementinitsprofit beforezakatandtaxfromRM49.7millionrecordedinthe lastfinancialyeartoRM97.9million.Operatingrevenue recordedanincreaseof65%fromRM1,049.1millioninthe lastfinancialyeartoRM1,728.6milliononimprovedgross contribution and investment income. These favourable results,albeitthe18monthfinancialperiod,weremainly attributed to the commitment and hard work of our team, the capabilities of our newly added distribution channel and also our edge over other Takaful operators viatheeverpopularMudharabahmodel.Iampleasedto saythat,tothisend,TakafulMalaysiahasbeensteadily payingout15%Mudharabahtoallofourparticipantsin the General Takaful and selected Family Takaful products shouldnoclaimsincurredwithinthecoverageperiod. Thefavorableprofitwasachievedonthebackofhigher wakalah fees earned and higher surplus transfer mainly fromtheFamilyTakafulbusiness.Thesurplusfromboth FamilyTakafulandGeneralTakafulbusinesseswasaided byhighergainsfrominvestments. COMPANY PERFORMANCE Takaful Malaysia achieved profit before zakat and tax ofRM93.0millionforthe18monthsended31December 2010,anincreaseof103%overthelastfinancialyearof RM45.8million.Theimprovedprofitwasachieved,albeit the 18 month financial period, on the back of higher wakalah fees earned and higher surplus transfer from boththeFamilyTakafulandGeneralTakafulbusinesses. Highergainsfrominvestmentscontributedtothehigher surplusfrombothTakafulbusinesses. operating revenue of the Company recorded an increase of 65% from RM871.1 million during the last financial year to RM1,440.7 million. Gross contribution grewtoRM1,179.3millionfromRM709.3millioninthelast financialyear.TheGeneralTakafulcontributionposteda stronggrowthat81%,growingfromRM276.3millionto RM499.5 million. On the Family Takaful business, gross contributiongrew57%fromRM433.0milliontoRM679.8 million on the back of the Mortgage Takaful business growth.

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Selain itu, keuntungan Syarikat yang lebih tinggi juga adalahhasilpendapatanyanglebihbaikdaripadaaktiviti pelaburanyangmerekodkanpertambahan90.5%kepada RM361.3 juta dari RM189.7 juta pada tahun kewangan sebelumnya. Pengukuhan ketara pendapatan pelaburan Takaful Malaysia adalah kerana peruntukan aset strategik yang lebih agresif dan pengurusan aktif untuk mengambil peluang pemulihan ekonomi global dan tempatan yang pesat selepas krisis kewangan pada 2008. Pemulihan ekonomiyanglebihpantasdaripadayangdijangkaadalah antaranya hasil daripada polisi monetari dan ransangan fiskalyangdilaksanakanolehpelbagaikerajaan,termasuk Malaysia. Dengan itu, KDNK domestik meningkat 7.2% pada 2010 selepas penurunan 1.7% yang dialami pada 2009. Sumbangan utama pendapatan pelaburan adalah daripada ekuiti dan Sukuk (korporat dan kerajaan) yangmerangkumi67.3%asetpelaburanSyarikat.Tahun kewangan yang ditinjau ini merupakan tahun yang menarikbagiSukuk,hasildaripadapolisimonetariyang bersesuaian dan sebaran kredit yang semakin kecil sejajar dengan pemulihan ekonomi. Dengan sokongan pengurusan aktif, portfolio Sukuk mencatatkan pendapatan keseluruhan sebanyak RM218.9 juta, iaitu pertambahan sebanyak 83.0% dari RM119.6 juta pada tahunkewangansebelumnya. Sejajar dengan peruntukan aset strategik yang agresif dalammenjangkakanpasaranekuitiyangbaikpadamasa akandatang,jumlahpendedahanbagiekuitimeningkat 94.1% kepada RM359.8 juta dari RM185.4 juta pada tahun kewangan sebelumnya. Dengan pilihan saham yang berkesan dan dagangan aktif untuk mengambil keuntungan, portfolio ekuiti merekodkan prestasi yang membanggakan dengan pendapatan berjumlah RM73.3

In addition, the Company's higher profit was also attributed to the improved income from investment activities, which recorded a 90.5% increase to RM361.3 millionfromRM189.7millioninthelastfinancialyear. The significant improvement of Takaful Malaysia's investment income was due to more aggressive strategic asset allocation and active management to take advantage of rapid phase of global and domestic economicrecoveryafterthefinancialcrisisexperienced in2008.Thefasterthananticipatedeconomicrecovery was among others supported by the unprecedented monetary policy and fiscal stimulus implemented by thevariousgovernmentsincludingMalaysia.Asaresult, domesticGDPgrewby7.2%in2010afterthedecrease of1.7%experiencedin2009. The main contribution of investment income was from equity and Sukuk (corporate and government) which constituted 67.3% of the Company's investment assets. It was indeed an interesting year for Sukuk mainly as a result of the accommodative monetary policy and credit spread tightening as the domestic economy recovered. Supported by active management, Sukuk portfoliorecordedanoverallincomeofRM218.9million, anincreaseof83.0%fromRM119.6millionintheprevious financialyear. In line with the aggressive strategic asset allocation in anticipation of bullish equity market ahead, the total exposure in equity was increased by 94.1% to RM359.8 million from RM185.4 million in the previous financial year.Coupledwitheffectivestockselectionsandactive trading to lock in profit, equity portfolio recorded remarkable performance where it had recorded an incomeofRM73.3million,amajorreversalfromalossof

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juta, jauh berbeza dengan kerugian RM6.3 juta pada tahunkewangansebelumini.Selainitu,TakafulMalaysia jugatelahmemulakanbeberapainisiatifuntukmenaikkan kadar hasil daripada hartanah untuk meningkatkan keuntungan Syarikat di masa hadapan. Ini termasuklah penjualan hartanah yang tidak berpotensi untuk mendapatkan nilai daripadanya serta inisiatif penjimatan kosdenganmenambahbaiksistemmekanikaldanelektrik bagiDataranKewanganDarulTakafulsupayakecekapan penggunaan tenaga dipertingkatkan dan seterusnya menaikkankadarhasilhartanahtersebut. ULASAN SUBSIDIARI Kumpulan Syarikat Takaful Indonesia (STI) Untuk tempoh 18 bulan berakhir 31 Disember 2010, Kumpulan TI erekodkan endapatan perasi erjumlah S m P O b RM263.8 juta berbanding RM152.1 juta pada tahun kewanganyanglalu.Keuntunganselepaszakatdancukai untuktempohsemasadalamtinjauanberjumlahRM10.7 juta,melonjakdariRM1.4jutayangdiperolehipadatahun kewangan sebelum ini. Prestasi yang bertambah baik ini adalah hasil daripada perubahan polisi perakaunan bagimematuhistandardperakaunanIndonesia,dimana kerugianpesertadiiktirafdibawahdanaTakafulKeluarga, sekaligus meningkatkan pemulihan kerugian dalam dana pemegang saham sebanyak RM5.5 juta. Sebelum perubahan ini, kerugian peserta diiktiraf di bawah dana pemegangsaham. prestasi jualan STI ditunjukkan melalui hasil jualan kolektif darikedua-duaP.T.AsuransiTakafulKeluarga(ATK)dan P.T.AsuransiTakafulUmum(ATU). Prestasi jualan ATK berkembang 74% berbanding tempoh yang sama tahun lalu. Peningkatan ketara ini adalah hasil fokus dalam segmen Bancatakaful dan kerjasama strategik melalui program afiniti yang lebih baik.KejayaanBancatakafuldisebabkanperkembangan pesat perbankan Syariah dan keupayaan ATK untuk merebutkedudukannyasebagaipengendalitakafulyang palingutuhdiIndonesia.Perniagaankerjasamastrategik dikukuhkan lagi melalui hubungan akrab dengan rakan kongsi utama seperti PT. POS Indonesia dan Telkom Indonesia,dimanaprogramafinitiberkembangdengan pantas. Dalam menyokong pertumbuhan perniagaan, pasukan pengurusanbarudiATKberjayamenggajipekerjabagi jawatan utama di peringkat atasan termasuklah pengarah Presiden, Pengarah Operasi dan Aktuari. Pengambilan RM6.3millioninthepreviousfinancialyear.Inaddition, TakafulMalaysiahadalsoembarkedonseveralinitiatives to increase the property yield, thus further improving the Company'sprofitabilitymovingforward.Theseincluded disposal of non-performing properties to unlock their values and cost saving initiative through upgrading of mechanical and electrical system for Dataran Kewangan Darul Takaful to improve the energy consumption efficiency,henceimprovingitspropertyyield. REVIEW OF SUBSIDIARY Syarikat Takaful Indonesia (STI) Group For the 18 months period ended 31 December 2010, STI Group recorded an Operating Revenue of RM263.8 million compared with RM152.1 million during the last financial year. Profit after zakat and taxation for the current period under review was RM10.7 million, an increaseoverthelastfinancialyearofRM1.4million.The improved result is partly from the change in accounting policy in compliance to Indonesia accounting standard requiring that participants' losses be recognized in the Family Takaful fund has given rise to a recovery of losses in the Shareholders' fund of RM5.5 million. Before this change, the participants' losses were recognized in the Shareholders'fund. The sales performance in STI is reflected by way of collective sales results at both P.T. Asuransi Takaful Keluarga(ATK)andP.T.AsuransiTakafulUmum(ATU). ThiswasledbythesalesperformanceatATKthatgrew 74%fromthelastfinancialyear.Themarkedimprovement was largely as a result of greater focus within the bancatakaful segment and improved strategic alliance/ partnerships vis-à-vis affinity programs. Bancatakaful's success is underscored by the accelerated Shariah bankingwindowgrowthandATK'sabilitytogather"first mover" advantage being the most established takaful operatorinIndonesia.Strategicalliancebusinesseswere fortifiedthroughthedeepeningofrelationshipswithkey partners i.e., PT. POS Indonesia and Telkom Indonesia whereaffinityprogramgrewrapidly. In supporting the business growth, a new management team at aTK emerged with the successful recruitment of key positions at leadership level that included the President Director, Operations Directors and Actuary.

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pekerja ini adalah selaras dengan proses transformasi untuk mengubah ATK menjadi pengendali takaful yang lebihagresifdandominan. pada masa yang sama, perniagaan aTu juga menunjukkan peningkatan walaupun peratusannya lebih rendah, iaitu sebanyak60%,keranapertumbuhanindustriamadalah lebih perlahan pada tahun 2010. ATU telah mengkaji semula strategi perniagaannya dengan fokus yang lebih dalam mengembangkan perniagaan runcitnya. Ini melibatkan pembentukan pasukan jualan Bancatakaful yang berdedikasi di Jakarta, dan mempunyai lebih daripada 30% perniagaan di Indonesia. Fokus ini memungkinkan kadar hasil yang lebih tinggi daripada segmenBancatakafuldidalamPerbankanSyariahyang sedangberkembang. asean retakaful (arIL) ARIL merekodkan Pendapatan Operasi sebanyak RM24.1jutauntuktempoh18bulanberakhir31Disember 2010 berbanding RM27.2 juta yang dicatatkan pada tahun kewangan sebelumnya berikutan pengunderitan perniagaan baru dibekukan pada tahun kewangan semasa. Para pemegang saham ARIL telah bersetuju untuk memulakan peringanan risiko dalam portfolio arIL dandijangkaakanselesaimenjelangDisember2011. TANGGUNGJAWAB SOSIAL KORPORAT Sebagaisebuahsyarikatberkaitankerajaan(GLC),Takaful MalaysiajugakomitedterhadapobjektifTanggungjawab Sosial Korporat (CSr) seperti yang digariskan di dalam Silver Book, iaitu satu set prinsip dan garis panduan yang perlu dilaksanakan oleh GLC untuk membolehkannya menyumbangsecaraproaktifkepadamasyarakatsambil merangsang nilai kepada para pemegang sahamnya. Sejajar dengan Silver Book tersebut, kami berusaha menghulurkan sumbangan kepada masyarakat dengan cara yang paling cekap dan berkesan selaras dengan kelazimandanamalanterbaikindustrisertarangkakerja peraturanyangberkaitan. Dalam program CSR kami di bawah Takaful myJalinan, tigaprogramtelahdilaksanakaniaitu:· TakafulmyJalinanKasihyangmenyediakanbantuan kewangan kepada golongan yang memerlukan termasukanak-anakyatim,ibutunggaldankumpulan kurangbernasibbaikyanglain; Takaful myJalinan Ilmu yang melengkapi tugas para pendidik dengan membantu pelajar mencapai kecemerlangan dalam bidang pelajaran dengan penekanankhususdiberikepadausahamemperbaiki penguasaandalamBahasaInggeris; These hiring are in tandem with the transformation process of converting aTK into a more forceful and dominanttakafuloperator. Onthesamebreadth,ATU'sbusinessalsoshowedgrowth, albeit lower at 60% largely due to a general industry that had slower growth in 2010. ATU had re-assessed its business strategy with greater focus in growing the retail business. This involved creation of dedicated Bancatakaful sales force within greater Jakarta that accountedformorethan30%oftheIndonesianbusiness. This focus allowed greater harvest of the Bancatakaful segmentwithinthegrowingShariahBankingwindows. asean retakaful (arIL) ARILrecordedanOperatingRevenueofRM24.1millionfor the18monthsperiodended31December2010compared with RM27.2 million recorded in the last financial year following the cessation of underwriting new business during the current financial period. The shareholders of arIL have agreed to commence commutation of the risks in the portfolio of ARIL and are expected to be completedbyDecember2011. CORPORATE SOCIAL RESPONSIBLITY Asagovernment-linkedcompany(GLC),TakafulMalaysia iscommittedtothecorporatesocialresponsibility(CSR) objectives outlined in the Silver Book which is a set of principles and guidelines to be implemented by GLCs so they can proactively contribute to the society while stillcreatingvaluefortheirshareholders.Inlinewiththe Silver Book, we endeavour to contribute to the society in the most efficient and effective manner in line with industrynormsandbestpracticesaswellastherelevant regulatoryframework. Weconductedthreesub-programmesundertheTakaful myJalinanCSRumbrella:· Takaful myJalinan Kasih provides monetary assistance to the needy including orphans, single mothers and othergroupsofunderprivileged; Takaful myJalinan Ilmu complements the work of school teachers by helping students excel in their studies with special emphasis on improving their proficiencyinEnglish;

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Penyata Pengerusi

Chairman's Statement

· Takaful myJalinan Alam yang bermatlamat untuk memelihara alam sekitar melalui pelbagai aktiviti mesra alam sekitar sambil mendidik seluruh rakyat 1Malaysia tentang kepentingan untuk melindungi alamsekitarkita. · Takaful myJalinan Alam aims to preserve the environmentthroughvariousenvironmental-friendly activities while educating 1Malaysia on the importance ofsafeguardingourenvironment.

Sehingga kini, Takaful Malaysia telah menyumbang hampir RM4 juta kepada pelbagai kumpulan yang membelagolonganyangkurangbernasibbaikdiseluruh MalaysiasejakprogramCSRinidiperkenalkanpadabulan Januari2009. KESIMPULAN Saya ingin mengulangi komitmen Syarikat kepada kesemua pemegang saham kami. Dalam menghadapi persaingan sengit industri Takaful, Takaful Malaysia akan kekal fokus mendukung janji jenama kami dan akan memaksimakan keuntungan dan pelaburan para pemegang saham yang kami hargai. Kami akan mengambil langkah-langkah yang perlu, sama ada di peringkat strategik mahupun operasi, untuk mencapai prestasikewanganyanglebihmantap. Objektif strategik kami bagi Tahun Kewangan akan datang adalah untuk mengekalkan trend pertumbuhan duadigitmelaluipembangunanprodukhebatdanboleh dijual yang akan memenuhi keperluan 1Malaysia yang semakin sofistikated. Tawaran produk hebat ini harus disertai dengan kualiti perkhidmatan yang lebih hebat daripadabiasa-danyangpentingsekali,mudahdiakses oleh1Malaysia. akhir sekali, saya ingin merakamkan penghargaan kami kepada Lembaga Pengarah atas komitmen yang tidak berbelah bahagi dan usaha mereka sepanjang tahun; kepada para pemegang saham dan pelanggan yang kamihargaiatassokonganpadumereka;Jawatankuasa pengurusan dan Kakitangan atas ketekunan, komitmen dansikapprofesionalmereka;dankepadaRakanNiaga kami atas keyakinan dan sokongan mereka. Semoga kita akan terus mengukuhkan perhubungan kita di masa-masayangakandatang.

So far, Takaful Malaysia has contributed close to RM4 million to various underprivileged groups across Malaysia since the inception of this unique CSr programme in January2009. CONCLUSION In conclusion, I would like to reiterate the Company's commitment to all our stakeholders. In the face of the intense competition in the Takaful fraternity, Takaful Malaysia will remain focused on upholding our brand promisewhilemaximisingtheprofitsandinvestmentsof ourvaluedstakeholders.Wewilltakevariousnecessary measures, both at strategic and operational levels, to achieveamoresolidfinancialperformance. Our strategic objective for the next Financial Year is to maintain our double digit growth trend via the development of niche and salable products that will addressthegrowingsophisticationof1Malaysiademands. These superior offerings must then be complimented with exceptional service quality ­ most importantly, easilyandwidelyaccessibleby1Malaysians. Finally, I would like to thank the Board of Directors for their unreserved commitment and efforts throughout the year; our valued shareholders and customers for theirstaunchsupport;theManagementCommitteeand Staff for their diligence, commitment and exemplary professionalism; and to our Business Partners for their confidenceandsupport.Ilookforwardtofurtheringour various associations and strengthening our ties in the upcomingyear.

Dato' Paduka Ismee Ismail Chairman

Dato' Paduka Ismee Ismail Pengerusi

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Financial Statements

Directors' Report 088 Statement by Directors 093 Statutory Declaration 094 Report of the Auditors 095 Report of the Shariah Advisory Body 097 Balance Sheets 098 Income Statements 099 Statements of Changes In Equity 100 Family Takaful Balance Sheet Family Takaful Revenue Accounts General Takaful Balance Sheet General Takaful Revenue Accounts Cash Flow Statements Notes to the Financial Statements 102 103 105 106 108 111

088

Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Directors' Report

for the Financial Period Ended 31 December 2010

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial period ended 31 December 2010. Principal Activities The principal activities of the Company consist of managing family and general takaful businesses, whilst the principal activities of the subsidiaries are as stated in Note 6 to the financial statements. There has been no significant change in the nature of these activities during the financial period. Change of Financial Year End The financial year end of the Company and its subsidiary was changed from 30 June to 31 December. Accordingly, the financial statements of the Group and of the Company for the financial period ended 31 December 2010 cover an 18-month period compared to the 12-month year ended of 30 June 2009 and therefore the comparative amounts are not comparable. Results Group RM'000 Net profit for the financial period Reserves and Provisions There were no material transfers to or from reserves and provisions during the financial period under review. Dividends The dividends paid by the Company since 30 June 2009 were as follows: RM'000 In respect of the financial year ended 30 June 2009 as reported in the directors' report of that year: Final dividend of 7.25% less 25% taxation, paid on 11 December 2009 In respect of the financial period ended 31 December 2010: Interim dividend of 7% less 25% taxation, paid on 8 October 2010 8,853 57,749 Company RM'000 49,856

8,548 17,401

The final dividend recommended by the Directors in respect of the financial period ended 31 December 2010 is 7% less tax totalling RM8,547,893.

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Directors' Report

for the Financial Period Ended 31 December 2010

Directors of the Company Directors who served since the date of the last report are:Y. Bhg. Dato' Paduka Ismee Ismail Y.A.M. Tengku Azman Ibni Almarhum Sultan Abu Bakar Y. Bhg. Dato' Mohamed Hassan Md. Kamil Puan Rozaida Omar Encik Mahadzir Azizan Y. Bhg. Dato' Sulaiman Mohd Yusof Encik Johan Abdullah Encik Zakaria Ismail (Appointed on 16 December 2009) (Retired on 14 May 2010)

(Appointed on 15 May 2010)

In accordance with Article 62 of the Company's Articles of Association, Encik Mahadzir Azizan and Y.Bhg.Dato' Sulaiman Mohd Yusof will retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election. In accordance with Article 66A of the Company's Articles of Association, Y. Bhg. Dato' Paduka Ismee Ismail and Encik Zakaria Ismail will retire at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election. Directors' Interests According to the register of directors' shareholding, none of the directors in office at the end of the financial period held any interest in the shares and options over shares of the Company or its related corporations during the financial period ended 31 December 2010. Directors' Benefits Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements) by reason of a contract made by the Company or a related company with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest. There were no arrangements during and at the end of the financial period which had the object of enabling Directors of the Company to acquire by means of the acquisition of shares in or debentures of the Company or any other corporate body. Statement on corporate governance and internal controls (a) Board Responsibilities The Board of Directors ("the Board") is ultimately responsible for the proper stewardship of the Company's resources, the achievement of corporate objectives and good corporate citizenship and discharges this responsibility through compliance with the Takaful (Amendment) Act, 1984 and BNM Guidelines on Duties and Responsibilities of Directors and Chief Executives of Insurers (JPIT/GPT 1) and other directives, in addition to adopting other best practices on corporate governance.

090

Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Directors' Report

for the Financial Period Ended 31 December 2010

Statement on corporate governance and internal controls (continued) (a) Board Responsibilities (continued) The Board comprises six non-executive directors and one executive director to enable a balanced and objective consideration of issues, hence facilitating optimal decision making. The executive director adds value to the decision making process by providing a management and operational perspective to issues placed before the Board. (b) Management Accountability The Company has an organisational structure showing all reporting lines as well as clearly documented job descriptions for all management and executive employees. Authority limits, as approved by the Board, are clearly established and made available to all employees. (c) Corporate Independence The Company has complied with BNM's Guidelines on Related Party Transactions (JPIT/GPT 7) (Consolidated). Necessary disclosures have been made to the Board and when required, prior Board's approval has been obtained. All material related party transactions have been disclosed in Note 34 to the financial statements. (d) Internal Controls and Operational Risk Management The responsibility for establishing an effective risk management and internal control system rests with the Board. The Board has put in place an Enterprise Wide Risk Management ("ERM") framework within the Group to ensure that there is an on-going process of identifying, evaluating, monitoring and managing the significant risk exposures inherent in its business operations. The Group has established a structured risk management process of which the roles and responsibility of Risk Management Committee of the Board (RISCO) and Management Risk Committee (MRC) are clearly spelt out. Given that Business Continuity Management (BCM) is the key component of the overall risk management framework, the Company also has established a Business Continuity Management Framework. The Group has established adequate internal control system to address the need for an effective and efficient business operations, sound financial reporting and control procedures and compliance with relevant laws and regulations. (e) Public Accountability As custodian of public funds, the Company's dealings with the public are always conducted fairly, honestly and professionally. (f) Financial Reporting The Company has maintained proper accounting records and the Company's financial statements are prepared in accordance with Financial Reporting Standards ("FRS") issued by the Malaysian Accounting Standards Board ("MASB"), the provisions of the Companies Act, 1965, the Takaful (Amendment) Act, 1984 and Takaful Guidelines/Circular issued by Bank Negara Malaysia ("BNM") and Principles of Shariah.

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091

Directors' Report

for the Financial Period Ended 31 December 2010

Other Statutory Information Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that: i) all known bad debts have been written off and adequate provision made for doubtful debts;

ii) all current assets have been stated at the lower of cost and net realisable value; and iii) there was adequate provision for incurred claims, including Incurred But Not Reported ("IBNR") claims. At the date of this report, the Directors are not aware of any circumstances: i) that would render the amount written off for bad debts, or the amount of the provision for doubtful debts and provision for incurred claims including IBNR claims in the Group and in the Company inadequate to any substantial extent, or

ii) that would render the value attributed to the current assets in the Group and in the Company financial statements misleading, or iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate, or iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and of the Company misleading. The contingent liabilities of the Group and the Company are disclosed in Note 40 to the financial statements. As at the date of this report, there does not exist: i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial period and which secures the liabilities of any other person, or

ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial period. No other contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial period which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. For the purpose of this paragraph, contingent and other liabilities do not include liabilities arising from contracts of takaful underwritten in the ordinary course of business of the Group and the Company.

092

Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Directors' Report

for the Financial Period Ended 31 December 2010

Other Statutory Information (continued) In the opinion of the Directors, the results of the operations of the Group and of the Company for the financial period ended 31 December 2010 have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of the financial period and the date of this report. Auditors The auditors, Messrs KPMG Desa Megat & Co., have indicated their willingness to accept re-appointment. Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

.................................................................. Dato' Paduka Ismee Ismail

.................................................................. Dato' Mohamed Hassan Md. Kamil

Kuala Lumpur, Date: 28 March 2011

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Statement by Directors

Pursuant to Section 169(15) of the Companies Act, 1965

In the opinion of the Directors, the financial statements set out on pages 98 to 181 are drawn up in accordance with the provisions of the Companies Act, 1965 and Financial Reporting Standards issued by the Malaysian Accounting Standards Board and comply with the Principles of Shariah so as to give a true and fair view of the state of affairs of the Group and of the Company at 31 December 2010 and of the results of their operations and cash flows for the period ended on that date. In the opinion of the Directors, the information set out in Note 42 to the financial statements has been compiled in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad. Signed in accordance with a resolution of the Directors:

............................................................................. Dato' Paduka Ismee Ismail

............................................................................. Dato' Mohamed Hassan Md. Kamil

Kuala Lumpur, Date: 28 March 2011

094

Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Statutory Declaration

Pursuant to Section 169(16) of the Companies Act, 1965

I, Lee Kok Wah, the officer primarily responsible for the financial management of Syarikat Takaful Malaysia Berhad, do solemnly and sincerely declare that the financial statements set out on pages 98 to 182 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the above named in Kuala Lumpur on 28 March 2011.

............................................................................. Lee Kok Wah

Before me:

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095

Report of the Auditors

to the Members of Syarikat Takaful Malaysia Berhad

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

Report on the Financial Statements We have audited the financial statements of Syarikat Takaful Malaysia Berhad, which comprise the balance sheets as at 31 December 2010 of the Group and of the Company, and the income statements, revenue accounts, statements of changes in equity and cash flow statements of the Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 98 to 181. Directors' Responsibility for the Financial Statements The directors of the Company are responsible for the preparation of financial statements that give a true and fair view in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia, and for such internal control as the directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December 2010 and of their financial performance and cash flows for the period then ended. Report on Other Legal and Regulatory Requirements In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following: a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

096

Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Report of the Auditors

to the Members of Syarikat Takaful Malaysia Berhad

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

Report on Other Legal and Regulatory Requirements (continued) b) We have considered the accounts and the auditors' reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 6 to the financial statements. c) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company's financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes.

d) The audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act. Other Reporting Responsibilities Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The information set out in Note 42 to the financial statements has been compiled by the Company as required by the Bursa Malaysia Securities Berhad Listing Requirements and is not required by the Financial Reporting Standards. We have extended our audit procedures to report on the process of compilation of such information. In our opinion, the information has been properly compiled, in all material respects, in accordance with the Guidance on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants and presented based on the format prescribed by Bursa Malaysia Securities Berhad. Other Matters This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

........................................................ KPMG Desa Megat & Co Firm Number: AF: 0759 Chartered Accountants Date: 28 March 2011

........................................................ Khaw Hock Hoe Approval Number: 2229/04/12 (J) Chartered Accountant

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Report of the Shariah Advisory Body

We have reviewed the principles and the contracts relating to the transactions and applications introduced by Syarikat Takaful Malaysia Berhad (Takaful Malaysia) during the financial period ended 31 December 2010. We have also conducted our review to form an opinion as to whether Takaful Malaysia has complied with the Shariah principles and with the Shariah rulings issued by the Shariah Advisory Council of Bank Negara Malaysia. The management of Takaful Malaysia is responsible for ensuring that Takaful Malaysia conducts its business in accordance with Shariah principles. It is our responsibility to form an independent opinion, based on our review of the operations of Takaful Malaysia. We have assessed the work carried out during Shariah review which included examining, on a test basis, each type of transaction, the relevant documentation and procedures adopted by Takaful Malaysia. We planned and performed our review so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that Takaful Malaysia has not violated the Shariah principles. In carrying out our roles and responsibilities, we hereby submit the following report for the financial period ended 31 December 2010:1. 2. 3. 4. The Shariah Advisory Body (SAB) held six (6) meetings to review various products, transactions and processes in line with the Shariah requirements and we have also approved four (4) new products and eight (8) riders. In addition, in the said meetings, we have also approved the profit rate declaration for Family and General takaful products. We also discussed and approved proposals/issues related to takaful products. The Company during the financial period under review has tracked the non-halal income and disposed to charity upon obtaining approval from the SAB.

In our opinion:1. 2. 3. 4. The contracts, transactions and dealings entered into by Takaful Malaysia during the financial period ended 31 December 2010 are in compliance with the Shariah principles; The allocation of profit and charging of losses relating to investment accounts conform to the basis that had been approved by us in accordance with Shariah principles; All earnings that have been realised from sources or by means prohibited by the Shariah principles have been considered for disposal to charitable causes; and The calculation of zakat is in compliance with Shariah principles.

We, the members of the Shariah Advisory Body of Takaful Malaysia, do hereby confirm that the operations of Takaful Malaysia for the financial period ended 31 December 2010 have been conducted in conformity with the Shariah principles. We bear witness only to what we know, and we could not well guard against the unseen! (surah Yusuf, verse: 81) Chairman of the SAB : .................................... Dr. Ahmad Shahbari @ Sobri Salamon

Member of the SAB : .................................... Ustaz Mohd. Bakir Hj. Mansor

Kuala Lumpur, Date: 28 March 2011

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Balance Sheets

as at 31 December 2010

Group 30.6.2009 RM'000 Company 31.12.2010 30.6.2009 RM'000 RM'000

Note ASSETS Shareholders' assets Property and equipment Prepaid lease payments Investment properties Investment in subsidiaries Investment in associates Investments Financing receivables Deferred tax assets Qardh - Receivables Receivables Assets held for sale Cash and bank balances Total Shareholders' assets Total Family takaful assets (page 102) Total General takaful assets (page 105) Less : Interfund balances TOTAL ASSETS LIABILITIES Shareholders' liabilities Payables Provision for taxation Total Shareholders' liabilities Total Family takaful liabilities (page 102) Total General takaful liabilities (page 105) Less : Interfund balances Family takaful fund General takaful fund TOTAL LIABILITIES SHAREHOLDERS' EQUITY Share Capital Reserves Total equity attributable to shareholders of the Company Minority interest Total Equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 21 18 19

31.12.2010 RM'000

3 4 5 6 7 8 9 16 10 11 12 13

27,006 2,891 11,958 362,084 14,438 12,979 1,357 50,298 2,691 485,702 3,745,467 758,728 (45,446) 4,944,451

32,456 3,291 11,156 267,984 14,018 8,185 31,722 46,741 1,471 7,596 424,620 3,364,426 640,607 (57,418) 4,372,235

21,446 1,196 11,665 70,747 293,262 10,283 5,985 36,161 2,321 453,066 3,489,871 715,311 (38,569) 4,619,679

26,868 1,241 10,865 72,247 202,353 13,411 4,295 28,274 29,202 1,471 6,473 396,700 3,167,422 596,592 (41,834) 4,118,880

14

47,811 24,847 72,658 221,520 328,116 (45,446) 576,848 3,523,947 430,612 4,531,407 162,817 222,975 385,792 27,252 413,044 4,944,451

46,476 699 47,175 249,052 303,640 (57,418) 542,449 3,115,374 336,967 3,994,790 162,817 186,677 349,494 27,951 377,445 4,372,235

32,721 24,662 57,383 203,163 294,111 (38,569) 516,088 3,286,708 421,200 4,223,996 162,817 232,866 395,683 395,683 4,619,679

33,077 395 33,472 222,371 270,135 (41,834) 484,144 2,945,051 326,457 3,755,652 162,817 200,411 363,228 363,228 4,118,880

17

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Income Statements

for the Period Ended 31 December 2010

Group 1.7.2009 to 31.12.2010 RM'000 1,728,588 1.7.2008 to 30.6.2009 RM'000 1,049,134 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000 1,440,735 871,077

Note

Operating revenue Transfer from revenue accounts Family takaful General takaful Wakalah fee income Investment income Other operating income Management expenses Other operating expenses Profit from operations Finance costs Profit before zakat and taxation Zakat Taxation Profit for the period/year Attributable to: Shareholders of the Company Minority interest Profit for the period/year Earnings per share Basic earnings per share (sen)

23

24 25 26 27

102,924 118,908 141,962 17,086 26,324 (241,281) (68,037) 97,886 97,886 (516) (39,621) 57,749 56,346 1,403 57,749

66,149 81,583 38,718 9,289 17,850 (148,420) (15,454) 49,715 49,715 (862) (8,399) 40,454 39,394 1,060 40,454 24.2

101,349 118,679 66,944 12,352 15,672 (192,211) (29,763) 93,022 93,022 (358) (42,808) 49,856 49,856 49,856

56,979 78,961 9,427 6,678 11,287 (112,886) (4,615) 45,831 45,831 (506) (8,143) 37,182 37,182 37,182

30

31

34.6

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Statements of Changes in Equity

for the Period Ended 31 December 2010

Group ----------Non ­ distributable---------- Distributable Share Share Translation Retained capital premium reserve profits RM'000 RM'000 RM'000 RM'000 161,576 1,241 3,849 249 (5,684) 2,042 2,042 144,624 6,477 39,394

Total RM'000 304,365 2,042 2,042 1,490 6,477 39,394

Minority interest RM'000 31,670 1,698 1,698 (6,477) 1,060

Total Equity RM'000 336,035 3,740 3,740 1,490 40,454

At 1 July 2008 Exchange differences Net gain not recognised in the income statement Issue of shares - Cash Acquisition of additional interest in a subsidiary Net profit for the year Final dividend for the financial year 2008 (Note 22) At 30 June 2009 At 1 July 2009 Exchange differences Net loss not recognised in the income statement Net profit for the period Final dividend for the financial year 2009 (Note 22) Interim dividend for the financial period 2010 (Note 22) At 31 December 2010

162,817 162,817 -

4,098 4,098 -

(3,642) (3,642) (2,647)

(4,274) 186,221 186,221 -

(4,274) 349,494 349,494 (2,647)

27,951 27,951 (2,102)

(4,274) 377,445 377,445 (4,749)

-

-

(2,647) -

56,346

(2,647) 56,346

(2,102) 1,403

(4,749) 57,749

-

-

-

(8,853)

(8,853)

-

(8,853)

162,817

4,098

(6,289)

(8,548) 225,166

(8,548) 385,792

27,252

(8,548) 413,044

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Statements of Changes in Equity

for the Period Ended 31 December 2010

Company

----Non ­ distributable---Share Share capital premium RM'000 RM'000 161,576 1,241 162,817 162,817 3,849 249 4,098 4,098

Distributable Retained profits RM'000 163,405 37,182 (4,274) 196,313 49,856 (8,853) (8,548) 228,768 (Note 39)

Total RM'000 328,830 1,490 37,182 (4,274) 363,228 49,856 (8,853) (8,548) 395,683

At 1 July 2008 Issue of shares Net profit for the year Final dividend for the financial year 2008 (Note 22) At 30 June 2009/1 July 2009 Issue of shares Net profit for the period Final dividend for the financial year 2009 (Note 22) Interim dividend for the financial period 2010 (Note 22) At 31 December 2010

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Family Takaful Balance Sheet

as at 31 December 2010

Group 30.6.2009 RM'000 204,983 2,785,629 9,382 116,768 800 53,258 193,606 3,364,426 Company 31.12.2010 30.6.2009 RM'000 RM'000 198,172 2,998,193 72,376 82,820 4,368 133,942 3,489,871 196,097 2,666,468 5,662 108,936 800 47,982 141,477 3,167,422

Note Assets Investment properties Investments Financing receivables Receivables Assets held for sale Cash and bank balances Investment-linked Takaful assets Total family takaful assets Liabilities Payables Provision for outstanding claims Investment-linked Takaful liabilities Total family takaful liabilities Participants' fund Family takaful fund Total family takaful liabilities and participants' fund

31.12.2010 RM'000 206,980 3,164,455 72,376 91,301 9,304 201,051 3,745,467

5 8 9 11 12 13 33

14 15 33

173,730 44,016 3,774 221,520

186,322 48,130 14,600 249,052

156,453 42,936 3,774 203,163

167,091 40,680 14,600 222,371

18

3,523,947 3,745,467

3,115,374 3,364,426

3,286,708 3,489,871

2,945,051 3,167,422

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Family Takaful Revenue Accounts

for the Period Ended 31 December 2010

Group 1.7.2009 to 31.12.2010 RM'000 839,909 (30,824) 18,302 827,387 1.7.2008 to 30.6.2009 RM'000 524,867 (12,030) (8,270) 504,567 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000 679,831 (6,150) 19,242 692,923 433,007 (1,779) (9,742) 421,486

Note

Gross contributions Retakaful Decrease/(Increase) in actuarial reserves Net contributions Benefits paid and payable Death/disability Maturities Surrenders Medical Others

23 18

(164,534) (65,678) (230,941) (75,466) 9,212 (527,407)

(116,368) (29,931) (121,744) (18,196) 7,599 (278,640) (22,429) (15,207) 188,291

(142,533) (50,063) (194,367) (61,681) (8,597) (457,241) (66,944) (4,199) 164,539

(108,859) (22,177) (111,744) (9,330) 3,726 (248,384) (9,427) (15,207) 148,468

Wakalah fee Net administration fee

(106,036) (4,199) 189,745

Underwriting profit - Individual Family Underwriting profit - Group Family and others Underwriting profit - Group Family ILB Less: Underwriting profit - Individual Family Underwriting profit - Group Family and others & Group Family ILB Investment income Other operating income Other operating expenses Total profit for the period/year after excluding underwriting profit for Individual Family

150,835 36,714 2,196 189,745 (150,835)

103,289 84,689 313 188,291 (103,289)

130,026 32,317 2,196 164,539 (130,026)

82,451 65,704 313 148,468 (82,451)

24 25 27

38,910 228,693 144,359 (2,074)

85,002 138,850 21,408 (41,540)

34,513 213,420 112,785 (2,074)

66,017 132,607 34,084 (36,053)

409,888

203,720

358,644

196,655

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Family Takaful Revenue Accounts

for the period ended 31 December 2010

Group 1.7.2009 to 31.12.2010 RM'000 1.7.2008 to 30.6.2009 RM'000

Note

Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000

Total profit for the period/year after excluding underwriting profit for Individual Family Less: Allocation of special reserves Profit attributable to the Company and participants for the period/year after excluding underwriting profit for Individual Family Profit attributable to the Company transferred to income statement Profit payable to participants Profit attributable to participants for the period/year: Family takaful funds at the beginning of the period/year Underwriting profit - Individual Family Profit attributable to participants for the period/year Movement for the period/year: - Actuarial reserves - Qardh - Seed capital Special reserve Translation reserves Family takaful fund at the end of the period/year

409,888 (7,413)

203,720 (3,625)

358,644 (7,413)

196,655 (3,625)

402,475 (102,924) 299,551 (1,148) 298,403 3,115,374 150,835 298,403 (18,302) (29,170) 3,000 7,413 (3,606) 3,523,947

200,095 (66,149) 133,946 (2,909) 131,037 2,911,266 103,289 131,037 8,270 (55,840) 18,766 3,625 (5,039) 3,115,374

351,231 (101,349) 249,882 (1,148) 248,734 2,945,051 130,026 248,734 (19,242) (28,274) 3,000 7,413 3,286,708

193,030 (56,979) 136,051 (2,909) 133,142 2,749,912 82,451 133,142 9,742 (52,587) 18,766 3,625 2,945,051

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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General Takaful Balance Sheet

as at 31 December 2010

Group 30.6.2009 RM'000 28,954 525,028 3,478 74,221 8,926 640,607 Company 31.12.2010 30.6.2009 RM'000 RM'000 29,234 610,474 6,320 59,131 10,152 715,311 28,954 502,427 3,478 56,047 5,686 596,592

Note Assets Investment properties Investments Financing receivables Receivables Cash and bank balances Total general takaful assets Liabilities Payables Provision for outstanding claims Total general takaful liabilities Participants' fund General takaful fund Total general takaful liabilities and participants' fund

31.12.2010 RM'000 29,234 630,589 6,320 80,744 11,841 758,728

5 8 9 11 13

14 15

101,471 226,645 328,116

132,235 171,405 303,640

93,620 200,491 294,111

124,931 145,204 270,135

19

430,612 758,728

336,967 640,607

421,200 715,311

326,457 596,592

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

General Takaful Revenue Accounts

for the Period Ended 31 December 2010

Marine Fire Note 1.7.2009 to RM'000 Group Gross contributions Retakaful Net contributions (Increase)/Decrease in unearned contribution reserves Earned contributions Net claims incurred Wakalah fee Net administration fee Underwriting surplus/(deficit) 32 20 (16,739) 78,356 (19,434) (9,784) 8,522 57,660 (4,711) 51,488 1,804 (3,683) 2,851 52,460 (19,453) 234,908 (158,840) (14,089) (16,672) 45,307 (24,830) 99,326 (59,183) (7,136) (6,033) 26,974 (414) 9,476 (10,979) (2,849) (1,018) (5,370) 202 6,066 (3,222) (1,033) (1,148) 663 2,898 82,482 (38,620) (9,203) (5,005) 29,654 (6,462) 46,855 (16,207) (4,437) (5,302) 20,909 (33,708) 405,222 (227,873) (35,925) (14,173) 127,251 (35,801) 203,735 (76,808) (16,289) (9,632) 101,006 23 201,450 (106,355) 95,095 118,222 (62,023) 56,199 259,908 (5,547) 254,361 126,943 (2,787) 124,156 21,045 (11,155) 9,890 12,504 (6,640) 5,864 123,951 (44,367) 79,584 95,182 (41,865) 53,317 606,354 352,851 1.7.2008 to RM'000 Motor 1.7.2009 to RM'000 1.7.2008 to RM'000 Aviation & Transit 1.7.2009 to RM'000 1.7.2008 to RM'000 Miscellaneous 1.7.2009 to RM'000 1.7.2008 to RM'000 1.7.2009 to RM'000 Total 1.7.2008 to RM'000

31.12.2010 30.6.2009 31.12.2010 30.6.2009 31.12.2010 30.6.2009 31.12.2010 30.6.2009 31.12.2010 30.6.2009

(167,424) (113,315) 438,930 239,536

Investment income Other operating income Other operating expenses

24 25 27

36,546 29,222 (448) 192,571 (118,908) 73,663 (16,740)

23,277 10,568 (8,763) 126,088 (81,583) 44,505 (23,494)

Total profit for the period/year Transfer to income statement Participants' share of profit Profit payable to participants Profit attributable to participants for the period/year Profit attributable to participants at beginning of the period/year Profit attributable to particiants at the end of the period/year Unearned contribution reserves (Note 20) Special reserves Statutory liabilities - Qardh Translation reserves General Takaful fund at end of the period/year

56,923 61,650

21,011 40,639

118,573 263,829 23,061 19,074 6,075

61,650 230,121 23,061 19,245 2,890

430,612

336,967

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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General Takaful Revenue Accounts

for the Period Ended 31 December 2010

Marine Fire Note 1.7.2009 to RM'000 Company Gross contributions Retakaful Net contributions (Increase)/Decrease in unearned contribution reserves Earned contributions Net claims incurred Net administration fee Underwriting surplus/(deficit) 32 20 (16,987) 59,311 (13,578) 10,387 56,120 (5,741) 36,057 4,576 5,296 45,929 (19,777) 204,699 (139,252) (16,669) 48,778 (24,198) 84,627 (49,175) (5,927) 29,525 (424) 3,154 (6,731) (527) (4,104) 222 3,124 (2,552) (522) 50 5,332 67,099 (31,504) (4,095) 31,500 1,279 43,322 (12,370) (3,793) 27,159 (31,856) 334,263 (191,065) (10,904) 132,294 (28,438) 167,130 (59,521) (4,946) 102,663 23 160,708 (84,410) 76,298 82,817 (41,019) 41,798 227,585 (3,109) 224,476 109,741 (916) 108,825 12,953 (9,375) 3,578 8,242 (5,340) 2,902 98,245 (36,478) 61,767 75,494 (33,451) 42,043 499,491 (133,372) 366,119 276,294 (80,726) 195,568 1.7.2008 to RM'000 Motor 1.7.2009 to RM'000 1.7.2008 to RM'000 Aviation & Transit 1.7.2009 to RM'000 1.7.2008 to RM'000 Miscellaneous 1.7.2009 to RM'000 1.7.2008 to RM'000 1.7.2009 to RM'000 Total 1.7.2008 to RM'000

31.12.2010 30.6.2009 31.12.2010 30.6.2009 31.12.2010 30.6.2009 31.12.2010 30.6.2009 31.12.2010 30.6.2009

Investment income Other operating income Other operating expenses

24 25 27

35,641 30,311 (448) 197,798 (118,679) 79,119 (16,232)

22,491 10,566 (4,117) 131,603 (78,961) 52,642 (23,239)

Total profit for the period/year Transfer to income statement Participants' share of profit Profit payable to participants Profit attributable to participants for the period/year Profit attributable to participants at beginning of the period/year Profit attributable to participants at end of the period/year Unearned contribution reserves (Note 20) Special reserves General takaful fund at end of the period/year

62,887

29,403

92,796

63,393

155,683 242,456 23,061

92,796 210,600 23,061

421,200

326,457

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Cash Flow Statements

for the Period Ended 31 December 2010

Group 1.7.2009 to 31.12.2010 RM'000 Cash flows from operating activities Profit before zakat and taxation Adjustments for: Depreciation and amortisation: - Shareholders' Fund - Family Takaful Fund - General Takaful Fund Fair value change of investment properties Income from financing receivables Income from Islamic Debt Securities, Investment Accounts and Islamic Accepted Bills Dividend income from Shariah approved shares Gain on disposal of quoted shares and unit trusts Gain on disposal of property and equipment Gain on disposal of investment properties (Gain)/loss on foreign exchange Write off of investments and equipment Accretion of discounts (Reversal of)/allowance for diminution in value of investments - Shareholders' Fund - Family Takaful Fund - General Takaful Fund - Investment-linked Fund Impairment loss of investment in a subsidiary Profit from Malaysian Government Investment Certificates Reversal of non-performing financing: - Shareholders' Fund - Family Takaful Fund - General Takaful Fund Operating loss before working capital changes 1.7.2008 to 30.6.2009 RM'000 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000

97,886

49,715

93,022

45,831

13,707 (1,870) (2,994) (190,813) (25,422) (82,908) (100) (932) 27 (7,863)

10,817 261 6 (18,021) (1,615) (123,067) (12,989) (2,039) (61) (1,506) 4,219 2,997 (5,195)

11,988 (1,684) (2,379) (171,361) (25,384) (45,895) (50) 27 (7,863)

9,163 261 6 (17,276) (1,253) (114,470) (12,912) (14,980) (26) (1,506) 2,997 (5,195)

(2,163) (47,595) (1,839) (38,285) (291,164)

2,192 9,649 1,661 13,891 (19,109) (2,045) (3,203) (1,950) (95,392)

(1,497) (41,862) (1,416) 1,500 (38,285) (231,139)

1,666 9,785 1,343 9,520 (18,116) (2,045) (3,276) (1,950) (112,433)

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Cash Flow Statements

for the Period Ended 31 December 2010

Group 1.7.2009 to 31.12.2010 RM'000 Operating loss before working capital changes Increase in Family Takaful Fund Increase in General Takaful Fund Increase in investments Income from Islamic Debt Securities, Investment Accounts, Islamic Accepted Bills and profit from Malaysian Government Investment Certificates Dividend income from Shariah approved shares Increase in payables (including claim admitted but not paid) Decrease in other receivables Zakat paid Income taxes paid Net cash used in operating activities Cash flows from investing activities Purchase of property and equipment Purchase of shares in subsidiary Proceeds from sale of investment properties Proceeds from sale of property and equipment Net cash (used in)/generated from investing activities (291,164) 408,573 93,645 (448,712) 1.7.2008 to 30.6.2009 RM'000 (95,392) 204,108 59,790 (554,308)

Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000 (231,139) 341,656 94,743 (429,232) (112,433) 195,139 57,841 (476,383)

190,813 25,422 3,822 10,764 (6,837) (2,775) (16,952) (26,564)

123,067 12,989 23,822 86,224 (139,700) (3,226) (1,370) (144,296)

171,361 25,384 5,386 17,279 (4,562) (3,104) (16,814) (24,480)

106,661 12,912 39,419 70,357 (106,487) (3,414) (1,276) (111,177)

(7,948) 1,006 156 (6,786)

(4,845) 61,506 156 56,817

(6,561) 863 (5,698)

(4,152) (21,825) 61,506 76 35,605

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Cash Flow Statements

for the Period Ended 31 December 2010

Group 1.7.2009 to 31.12.2010 RM'000 Cash flows from financing activities Proceeds from issuance of shares Dividends paid to shareholders of the Company Net cash used in financing activities 1.7.2008 to 30.6.2009 RM'000

Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000

(17,401) (17,401)

1,490 (4,274) (2,784)

(17,401) (17,401)

1,490 (4,274) (2,784)

Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of financial period/year Cash and cash equivalents at the end of financial period/year Cash and cash equivalents comprise: Cash and bank balances - Shareholders' fund (Note 13) - Family Takaful fund (Note 13) - Investment-Linked Business (Note 33) - General Takaful fund (Note 13)

(50,751) 77,058 26,307

(90,263) 167,321 77,058

(47,579) 66,498 18,919

(78,356) 144,854 66,498

2,691 9,304 2,471 11,841 26,307

7,596 53,258 7,278 8,926 77,058

2,321 4,368 2,078 10,152 18,919

6,473 47,982 6,357 5,686 66,498

The accompanying notes to the financial statements form an integral part of, and should be read in conjunction with, these financial statements.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Notes to the Financial Statements

Syarikat Takaful Malaysia Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of the Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business of the Company is located at: 26th Floor, Annex Block Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur The consolidated financial statements of the Company as at and for the period ended 31 December 2010 comprise the Company and its subsidiaries (together referred to as the Group). The financial statements of the Company as at and for the period ended 31 December 2010 do not include other entities. The Company is principally engaged in managing family and general takaful businesses, whilst the principal activities of the subsidiaries, are as stated in Note 6 to the financial statements. There has been no significant change in the nature of these activities during the financial period. The immediate holding company is BIMB Holdings Berhad, a company incorporated in Malaysia and listed on the Main Market of the Bursa Malaysia Securities Berhad. The ultimate holding corporation of the Company is Lembaga Tabung Haji, a statutory body established under the Tabung Haji Act 1995 (Act 535). The financial statements were approved by the Board of Directors on 28 March 2011. The financial year end of the Company and its subsidiary was changed from 30 June to 31 December. Accordingly, the financial statements of the Group and of the Company for the financial period ended 31 December 2010 cover an 18-month period compared to the 12-month year ended 30 June 2009 and therefore the comparative amounts are not comparable.

1.

Basis of preparation (a) Statement of compliance The financial statements of the Group and of the Company have been prepared in accordance with Financial Reporting Standards (FRS) issued by the Malaysian Accounting Standards Board (MASB), accounting principles generally accepted in Malaysia and the provisions of the Companies Act, 1965, the Takaful (Amendment) Act, 1984 and Takaful Guidelines/Circulars issued by Bank Negara Malaysia. These financial statements also comply with the applicable disclosure provisions of the Main Market Listing Requirements of the Bursa Malaysia Securities Berhad.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

1. Basis of preparation (continued) (a) Statement of compliance (continued) The Group and the Company have not applied the following accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting Standards Board (MASB) which are not yet effective to the Group and the Company: FRSs/Interpretations Amendments to FRS 1, First-time Adoption of Financial Reporting Standards and FRS 127, Consolidated and Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate Amendments to FRS 2, Share-based Payment: Vesting Conditions and Cancellations Amendments to FRS 132, Financial Instruments: Presentation-Separation of Compound Instruments and FRS 101, Presentation of Financial Statements-Puttable Financial Instruments and Obligations Arising on Liquidation FRS 7, Financial Instruments: Disclosures and IC Interpretation 9, Reassessment of Embedded Derivatives Amendments to FRS 139, Financial Instruments: Recognition and Measurement -ReclassificationofFinancialAssets - Collective Assessment of Impairment for Banking Institutions Improvements to FRSs (2009) FRS 4, Insurance Contracts Amendments to FRS 7, Financial Instruments: Disclosures FRS 101, Presentation of Financial Statements (revised) FRS 123, Borrowing Costs (revised) FRS 139, Financial Instruments: Recognition and Measurement IC Interpretation 10, Interim Financial Reporting and Impairment IC Interpretation 11, FRS 2 - Group and Treasury Share Transactions IC Interpretation 13, Customer Loyalty Programmes# IC Interpretation 14, FRS 119 - TheLimitonaDefinedBenefitAsset,Minimum Funding Requirements and Their Interaction# SOP i-1:Financial Reporting from an Islamic Perspective Amendments to FRS 132, FinancialInstruments:Presentation-ClassificationofRightsIssues Amendments to FRS 1, First-time Adoption of Financial Reporting Standards (revised) FRS 3, Business Combinations (revised) FRS 127, Consolidated and Separate Financial Statements (revised) Amendments to FRS 2, Share-based Payment Amendments to FRS 5, Non-current Assets Held for Sale and Discontinued Operations FRS 127, Consolidation and Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly controlled Entity or Associate (revised) Amendments to FRS 138, Intangible Assets IC Interpretation 12, Service Concession Agreements# IC Interpretation 16, Hedges of a Net Investment in a Foreign Operation IC Interpretation 17, Distribution of Non-cash Assets to Owners Amendments to IC Interpretation 9, Reassessment of Embedded Derivatives Effective date 1 January 2010

1 January 2010 1 January 2010

1 January 2010 1 January 2010

1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 March 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010 1 July 2010

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

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Notes to the Financial Statements

1. Basis of preparation (continued) (a) Statement of compliance (continued) FRSs/Interpretations Amendments to FRS 1, First-time Adoption of Financial Reporting StandardsLimited Exemptions from comparative FRS 7, Disclosures for First-time Adopters Amendments to FRS 1, Additional Exemptions for First-time Adopters Amendments to FRS 2, Group Cash-settled Share-based Payment Transactions Amendments to FRS 7, Financial Instruments: Disclosures- Improving Disclosures about Financial Instruments IC Interpretation 4, Determining Whether an Arrangement contains a Lease IC Interpretation 18, Transfer of Assets from Customers Improvements to FRSs (2010) IC Interpretation 19, Extinguishing Financial Liabilities with Equity Instruments Amendments to IC Interpretation 14, Prepayments of a Minimum Funding Requirement# FRS 124, Related Party Disclosures (revised) IC Interpretation 15, Agreements for Construction of Real Estate# # Not applicable to the Group and the Company Effective date 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 January 2011 1 July 2011 1 July 2011 1 January 2012 1 January 2012

The Group and the Company plan to adopt the aforesaid applicable standards, amendments and interpretations as follows: a) On 1 January 2011 for those with effective dates of 1 January 2010, 1 March 2010, 1 July 2010 and 1 January 2011. b) On 1 January 2012 for those with effective date of 1 July 2011 and 1 January 2012. The impact of applying FRS 4, FRS 7 and FRS 139 on the financial statements upon first adoption as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by virtue of the exemption given in these respective FRSs. The initial application of the other aforesaid applicable standards, amendments and interpretations is not expected to have any material impact on the financial statements. (b) Basis of measurement The financial statements of the Group and of the Company have been prepared on the historical cost basis except as disclosed in the notes to the financial statements. (c) Functional and presentation currency These financial statements are presented in Ringgit Malaysia (RM), which is the Company's functional currency. All financial information presented in RM has been rounded to the nearest thousand, unless otherwise stated.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

1. Basis of preparation (continued) (d) Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual result may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following notes: Notes 2 (o), 2 (p) & Note 18 - Provision for outstanding claims including IBNR claims, Family takaful funds and actuarial reserves. Note 5 - Investment properties

2.

Summary of significant accounting policies The accounting policies set out below have been applied consistently to periods presented in these financial statements, and have been applied consistently by Group entities, unless otherwise stated. (a) Basis of consolidation (i) Subsidiaries Subsidiaries are entities, including unincorporated entities, controlled by the Group. Control exists when the Group has the ability to exercise its power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. Subsidiaries are consolidated using the purchase method of accounting. Under the purchase method of accounting, the financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. For business combinations where the Group's equity interest in a subsidiary company is increased by virtue of a subscription to a higher proportion of the subsidiary company's new issue of shares as compared to its existing equity interest and where the share issue price is above or below the subsidiary company's net asset value, the resultant dilution or accretion of its share of net assets in the subsidiary company is recognised in equity. Investments in subsidiaries are stated in the Company's balance sheet at cost less any impairment losses, unless the investment is classified as assets held for sale (or included in a disposal group that is classified as held for sale).

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Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (a) Basis of consolidation (continued) (ii) Associates Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control, over the financial and operating policies. Associates are accounted for in the consolidated financial statements using the equity method unless it is classified as held for sale (or included in a disposal group that is classified as held for sale). The consolidated financial statements include the Group's share of the income and expenses of the equity accounted associates, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group's share of losses exceeds its interest in an equity accounted associate, the carrying amount of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. (iii) Transactions eliminated on consolidation Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group's interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. (iv) Minority interest Minority interest at the balance sheet date, being the portion of the net identifiable assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and statement of changes in equity within equity, separately from equity attributable to the equity holders of the Company. Minority interest in the results of the Group are presented on the face of the consolidated income statement as an allocation of the total profit or loss for the period/year between minority interest and the equity holders of the Company. Where losses applicable to the minority exceed the minority's interest in the equity of a subsidiary, the excess, and any further losses applicable to the minority, are charged against the Group's interest except to the extent that the minority has a binding obligation to, and is able to, make additional investment to cover the losses. If the subsidiary subsequently reports profits, the Group's interest is allocated with all such profits until the minority's share of losses previously absorbed by the Group has been recovered.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of the Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated at exchange rates at the dates of the transactions except for those that are measured at fair value, which are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statements. (ii) Operations denominated in functional currencies other than Ringgit Malaysia The assets and liabilities of operations in functional currencies other than RM, including goodwill and fair value adjustments arising from business combinations, are translated to RM at exchange rates at the balance sheet date, except for goodwill and fair value adjustments arising from business combinations before 1 January 2006 which are reported using the exchange rates at the dates of the acquisitions. The income and expenses of operations in functional currencies other than RM, are translated to RM at exchange rates at the dates of the transactions. Foreign currency differences are recognised in translation reserve. On disposal of such operations, the accumulated translation differences are recognised in the consolidated income statement as part of the gain or loss on sale. (iii) Net investment in foreign operations Exchange differences arising from monetary items that in substance form part of the Company's net investment in foreign operations, are recognised in the Company's income statement. Such exchange differences are reclassified to equity in the consolidated financial statements. Deferred exchange differences are recognised in the consolidated income statement upon disposal of the investment. (c) Property and equipment (i) Recognition and measurement Freehold land is stated at cost. All other property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the assets to working condition for its intended use and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

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Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (c) Property and equipment (continued) (i) Recognition and measurement (continued) When significant parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major components) of property and equipment. Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with carrying amount of property and equipment and are recognised at net within "other operating income" or "other operating expenses" respectively in the income statements. (ii) Subsequent costs The cost of replacing part of an item of property and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and the Company and its cost can be measured reliably. The carrying amount of those parts that are replaced is derecognised. The costs of the day-to-day servicing of property and equipment are recognised in the income statements as incurred. (iii) Depreciation Depreciation is recognised in the income statements on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. The estimated annual depreciation rates for the current and comparative periods are as follows: Buildings Renovation Furniture, fixtures and fittings Motor vehicles Computer and equipment The depreciable amount is determined after deducting the residual value. Depreciation methods, residual values and useful lives are reassessed at the balance sheet date. (d) Leased assets (i) Finance lease Leases in terms of which the Group or the Company assume substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. 2% 16.70% 16.7% - 20% 20% 16.7% - 33.3%

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (d) Leased assets (continued) (i) Finance lease (continued) Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the lease adjustment is confirmed. (ii) Operating lease Leases, where the Group or the Company does not assume substantially all the risks and rewards of the ownership are classified as operating leases and, except for property interest held under operating lease, the leased assets are not recognised on the Group or the Company's balance sheet. Property interest held under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as investment property. Leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee by the end of the lease term is treated as an operating lease. The payment made on entering into or acquiring a leasehold land is accounted for as prepaid lease payments, except for leasehold land classified as investment property. Payments made under operating leases are recognised in the income statements on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. (e) Investments Investments are recognised initially at purchase price plus attributable transaction costs. Subsequent to initial recognition: · Investments in Government Islamic Papers (Government Investment Issues and other Islamic instruments issued by the Government or Bank Negara Malaysia ("BNM"), Malaysian Government Securities, Islamic debt securities and other investments as specified by BNM and held to maturity are stated at cost adjusted for amortisation of premiums or accretion of discounts, calculated on a constant yield basis, from the date of purchase to maturity date. The amortisation of premiums and accretion of discounts are recognised in the revenue accounts/income statements. Quoted investments are stated at the lower of cost and market value determined on an aggregate portfolio basis by category of investments except that if diminution in value of a particular investment is not regarded as temporary, provision is made against the value of that quoted investment. All other unquoted investments are stated at the lower of cost and net realisable value.

·

·

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

119

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (e) Investments (continued) Subsequent to initial recognition: (continued) · Investments in quoted shares, unit trusts, and debt securities of investment-linked businesses are stated at the closing market prices. Unquoted Islamic debts securities and investment in commodity, equity and fixed income closed end fund of the investment-linked funds are stated at the prevailing prices quoted by independent financial institutions. Any increase or decrease in value of these investments is taken into the investment-linked business revenue accounts.

·

Allowance for diminution in value of investments are charged directly to the revenue accounts of the takaful funds and to the income statements. Subsequent increase in market value of the quoted investment is treated as a write back of the previous allowance for diminution in value of investments to the extent of the carrying amount of the quoted investments that would have been determined had no diminution in value had been recognised. On disposal of an investment, the difference between net disposal proceeds and its carrying amount is recognised in the revenue accounts/income statements. All investments in debt and equity securities are accounted for using settlement date accounting. Settlement date accounting refers to: a) the recognition of an asset on the day it is received by the entity, and b) the derecognition on an asset and recognition of any gain or loss on disposal on the date it is delivered. (f) Investment properties Investment properties are properties which are owned or held under a leasehold interest to earn rental income or for capital appreciation or for both. These include land held for a currently undetermined future use. Investment properties are initially stated at costs, including related and incidental expenditure incurred and are measured subsequently at fair value with any change therein recognised in the income statements/revenue accounts. External independent valuation companies, having the appropriate recognised professional qualifications, value the Group's investment properties on an annual basis. The fair values are based on market value, being the estimated amount for which a property could be exchanged between a willing buyer and a willing seller in an arm's length transaction. Investment properties are not depreciated. On disposal of investment properties, the difference between the net proceeds and the carrying amounts are recognised in the income statements/revenue accounts as appropriate.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (g) Financing receivables Financing receivables are initially recognised at their cost when the contractual right to receive cash or another financial asset from another entity is established. Financing receivables are not held for the purpose of trading. Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts. Known bad debts are written off and specific provisions is made for any financing, which remains outstanding for more than six months from the date on which they became payable, and for all debts which are considered doubtful. (h) Receivables Receivables are initially recognised at their cost when the contractual right to receive cash or another financial asset from another entity is established. Receivables are not held for the purpose of trading. Subsequent to initial recognition, receivables are stated at cost less allowance for doubtful debts. Known bad debts are written off and specific allowance for doubtful debts is made as follows: a) Motor contributions which remain outstanding for more than 30 days.

b) Non-motor contributions including agents and reinsurance balances, which remain outstanding for more than six months. (i) Non-current assets held for sale Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance with the Group's accounting policies. Thereafter, generally the assets (or disposal group) are measured at the lower of their carrying amount and fair value less cost to sell. Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to financial assets, deferred tax assets and investment property, which continue to be measured in accordance with the Group's accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in the income statements/revenue accounts. Gains are not recognised in excess of any cumulative impairment loss. (j) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid investments which have an insignificant risk of changes in value.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

121

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (k) Impairment of assets The carrying amounts of assets, except for financial assets (other than investments in subsidiaries and associate) and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statements/revenue accounts. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that largely independent of the cash inflows of other assets or group of assets (the "cash generating unit"). An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversal of impairment loss is credited to the income statements/revenue accounts in the year in which the reversal is recognised. (l) Employee benefits Shorttermemployeebenefits Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided. A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. The Group's contribution to the statutory pension fund is charged to the income statement in the year to which they relate. Once the contributions have been paid, the Group has no further payment obligations.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (m) Provisions A provision is recognised if, as a result of a past event, the Group and the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. Contingent liabilities do not include liabilities arising from contracts of takaful underwritten in the ordinary course of business of the Group and the Company. (n) Payables Payables are measured initially and subsequently at cost. Payables are recognised when there is a contractual obligation to deliver cash or another financial asset to another entity. (o) General takaful fund The general takaful fund is maintained in accordance with the Takaful Act, 1984 (amendment). Included in general takaful fund is fund arising from: · · General takaful; and General retakaful funds.

The general takaful underwriting results are determined for each class of takaful business after taking into account retakaful, unearned contributions, claims incurred and management expenses. Contribution income Contributions are recognised in a financial period in respect of risks assumed during that particular financial period based on the inception date. Inward treaty retakaful contributions are recognised on the basis of periodic advices received from ceding takaful operators. Unearned contribution reserves The Unearned Contribution Reserves ("UCR") represent the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period/year.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

123

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (o) General takaful fund (continued) Unearned contribution reserves (continued) In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows: (a) 1/365th method for all General Takaful business within Malaysia. (b) 1/8th method for all classes of General Treaty Inward Retakaful business. Provision for outstanding claims A liability for outstanding claims is recognised in respect of direct takaful business. The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries, if any, to settle the present obligation at the balance sheet date. Any difference between the current estimated cost and subsequent settlement is dealt with in the takaful revenue accounts for the Group and the Company in the year in which the settlement takes place. Provision is also made for the cost of claims, together with related expenses, incurred but not reported ("IBNR") at balance sheet date, using a mathematical method of estimation by a qualified external actuary where historical claims experience are used to project future claims. As with all projections, there are elements of uncertainty and the projected claim may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions. (p) Family takaful fund Included in family takaful fund is fund arising from:· · · Family takaful; Group family takaful; and Family retakaful funds.

The family takaful fund is maintained in accordance with the requirements of the Takaful (Amendment) Act, 1984 and includes the amounts attributable to participants which represents the participants' share of the underwriting surplus and return on the investments, where applicable and are distributable in accordance with the terms and conditions prescribed by the Group and the Company. The surplus transfer from the family takaful fund to the income statements is based on the predetermined profit sharing ratio of the underwriting surplus and return on investments. Contribution income Contribution is recognised as soon as the amount of the contribution can be reliably measured. Initial contribution is recognized from inception date and subsequent contribution is recognised when it is due. For individual family takaful contribution, recognition is up to the extent of one due amount.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (p) Family takaful fund (continued) Contribution income (continued) At the end of each financial period, all due contributions are accounted for to the extent that they can be reliably measured. Investment-linked business Investments of investment-linked business are stated at closing market prices. Any increase or decrease in value of these investments is taken into the investment-linked business revenue accounts. Actuarial reserves Actuarial reserves comprise the unearned contribution reserves and the reserve computed under the net contribution valuation as explained below : (i) Unearned contribution reserve The Unearned Contribution Reserve ("UCR") of group family fund (except for Mortgage Reducing Term Takaful ("MRTT") as detailed below) and family retakaful fund represents the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period/ year. In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows: (a) 1/365th method for all group family takaful business within Malaysia. (b) A pro-rata basis based on a time apportionment method for family retakaful business. (ii) Net contribution valuation The actuarial liabilities for MRTT products managed under group family fund and Ordinary Participants' Special Account ("PSA") are calculated using the net contribution method of valuation ("NCV"). The liability is ascertained by deducting the present value of future net contribution from the present value of the future amount-at-risk. As with all projections, there are elements of uncertainty and the projected liability may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claims settlement pattern as well as uncertainties in the projection model and underlying assumptions.

Laporan Tahunan 2010 Annual Report · Syarikat Takaful Malaysia Berhad (131646-K)

125

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (p) Family takaful fund (continued) Provision for wakalah fee reserves (i) Investment Linked products Provision is made to record future expected losses to the shareholders' fund, if any, arising from servicing of individual certificate contracts with participants. Provision is estimated based on the methodology stated in the Guidelines on Investment Linked Insurance/ Takaful Business (BNM/RH/GL 010-15) issued by Bank Negara Malaysia where best estimated cash flows are discounted to ensure that there are no negative net cash flows arising in the future in the Shareholders' Fund. The best estimate assumptions used are consistent with that used in the valuation of the Investment Linked Risk Fund. (ii) Single Contribution Wakalah Plans (Mortgage and Group Credit Wakalah) Provision is estimated based on actuarial present value of future maintenance expense. The assumptions used in calculating the provision are best estimate assumptions. Provision for outstanding claims Claims and provisions for claims arising on family and group family takaful certificates, including settlement costs, are accounted for using the case basis method and for this purpose, the benefits payable under a family takaful certificate are recognised as follows: (a) maturity or other policy benefit payments due on specified dates are accounted for as claims payable on the due dates. (b) death, surrender and other benefits without due dates are treated as claims payable on the date of receipts of intimation of death of the participant or occurrence of contingency covered. (c) for group health business, provision is made for the cost of claims, together with related expenses, incurred but not reported ("IBNR") at balance sheet date, using a mathematical method of estimation by a qualified internal actuary where historical claims experience are used to project future claims. As with all projections, there are elements of uncertainty and the projected claim may be different from actual. These uncertainties arise from changes in underlying risk, changes in spread of risks, claim settlement pattern as well as uncertainties in the projection model and underlying assumptions. (q) Other revenue recognition Income from financing are recognised on an accrual basis, except where financing is considered non-performing, i.e. where repayments are in arrears for more than six months, in which case recognition of such income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid.

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (q) Other revenue recognition (continued) Income is recognised on a time proportion basis that takes into account the effective yield of the asset. Wakalah fees are recognised as income or expenses by the respective funds based on a predetermined percentage of gross contributions upon inception of certificates. Wakalah surplus/(deficit) is arrived at after deducting commission and management expenses against the Wakalah fees charged. Rental is recognised on an accrual basis except where default in payment of rent has already occurred and rent dues remain outstanding for over six months, in which case recognition of rental income is suspended. Subsequent to suspension, income is recognised on the receipt basis until all arrears have been paid. Dividend is recognised when the right to receive payment is established. (r) Zakat This represents tithes payable by the Company to comply with the Principles of Shariah and as approved by the Shariah Advisory Body. (s) Tax expense Tax expense comprises current and deferred tax. Tax expense is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the period/year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences in relation to the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit/loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax liability is recognised for all taxable temporary differences. A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Additional taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend is recognised. (t) Operating lease payments The Group recognises its Ijarah financing obligations as operating leases. Lease payments under the operating lease are recognised as an expense in the income statements on a straight-line basis over the lease term.

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Notes to the Financial Statements

2. Summary of significant accounting policies (continued) (u) Earnings per share The Group presents basic and diluted earnings per shares ("EPS") data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS, where applicable, is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted to employees. (v) Segment reporting A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments.

3

Property and equipment (a) Shareholders' Fund Office equipment, furniture, Motor fixtures and vehicles fittings RM'000 RM'000 1,388 385 (111) (17) 1,645 91,275 7,306 (865) (2,739) (302) 94,675

Group Cost As at 1 July 2009 Additions Disposals Write offs Translation difference At 31 December 2010 Accumulated depreciation As at 1 July 2009 Charge for the period Disposals Write offs Translation difference At 31 December 2010 Net book value At 31 December 2010

Renovation Freehold and building Land Buildings in progress RM'000 RM'000 RM'000 1,660 1,660 7,895 35 (27) 7,903 222 222

Total RM'000 102,218 7,948 (976) (2,739) (346) 106,105

-

1,488 357 (12) 1,833

-

915 271 (111) (13) 1,062

67,359 12,679 (856) (2,704) (274) 76,204

69,762 13,307 (967) (2,704) (299) 79,099

1,660

6,070

222

583

18,471

27,006

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

3 Property and equipment (continued) (a) Shareholders' Fund (continued) Office equipment, furniture, Motor fixtures and vehicles fittings RM'000 RM'000 1,729 (208) (165) 59 3 (30) 1,388 85,261 4,680 (216) (10,702) 1,595 10,762 (105) 91,275

Group Cost At 1 July 2008 Additions Disposals Write offs Reclassified from assets held for sale (Note 12) Reclassified as assets held for sale (Note 12) Reclassification Translation difference At 30 June 2009 Accumulated depreciation At 1 July 2008 Charge for the year Disposals Write offs Reclassified from assets held for sale (Note 12) Reclassified as assets held for sale (Note 12) Reclassification Translation difference At 30 June 2009 Net book value At 30 June 2009

Renovation Freehold and building Land Buildings in progress RM'000 RM'000 RM'000 1,841 (181) 1,660 9,327 165 (762) (699) (136) 7,895 10,895 (10,895) -

Total RM'000 109,053 4,845 (424) (10,867) 1,654 (943) (829) (271) 102,218

-

2,065 311 (362) (488) (38) 1,488

-

943 301 (168) (171) 58 (40) (8) 915

63,808 9,955 (161) (7,699) 1,386 104 (34) 67,359

66,816 10,567 (329) (7,870) 1,444 (362) (424) (80) 69,762

1,660

6,407

-

473

23,916

32,456

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129

Notes to the Financial Statements

3 Property and equipment (continued) (a) Shareholders' Fund (continued) Office equipment, furniture, Motor fixtures and vehicles fittings RM'000 RM'000 447 170 617 80,909 6,169 (865) (2,739) 83,474

Company Cost At 1 July 2009 Additions Disposals Write offs At 31 December 2010 Accumulated depreciation At 1 July 2009 Charge for the period Disposals Write offs At 31 December 2010 Net book value At 31 December 2010 At 1 July 2008 Additions Disposals Write offs Reclassified as assets held for sale (Note 12) Reclassification At 30 June 2009 Accumulated depreciation At 1 July 2008 Charge for the year Disposals Write offs Reclassified as assets held for sale (Note 12) At 30 June 2009 Net book value At 30 June 2009

Renovation Freehold and building Land Buildings in progress RM'000 RM'000 RM'000 1,660 1,660 3,417 3,417 222 222

Total RM'000 86,433 6,561 (865) (2,739) 89,390

-

871 102 973

-

268 121 389

58,426 11,720 (856) (2,708) 66,582

59,565 11,943 (856) (2,708) 67,944

1,660 1,841 (181) 1,660

2,444 4,179 (762) 3,417

222 10,895 (10,895) -

228 716 (104) (165) 447

16,892 76,703 4,152 (139) (10,702) 10,895 80,909

21,446 94,334 4,152 (243) (10,867) (943) 86,433

-

1,150 83 (362) 871

-

413 100 (74) (171) 268

57,294 8,950 (119) (7,699) 58,426

58,857 9,133 (193) (7,870) (362) 59,565

1,660

2,546

-

179

22,483

26,868

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

4 Prepaid lease payments Shareholder's Fund Group Unexpired period less than 50 years RM'000 Cost At 1 July 2008 Translation difference At 30 June 2009/1 July 2009 Translation difference At 31 December 2010 Amortisation At 1 July 2008 Amortisation for the year Translation difference At 30 June 2009/1 July 2009 Amortisation for the period Translation difference At 31 December 2010 Carrying amounts At 1 July 2008 At 30 June 2009/1 July 2009 At 31 December 2010 2,347 2,050 1,695 1,271 1,241 1,196 3,618 3,291 2,891 1,271 1,241 1,196 1,271 1,241 1,196 Unexpired period more than 50 years RM'000 Unexpired period less than 50 years RM'000 Company Unexpired period more than 50 years RM'000

Total RM'000

Total RM'000

2,604 (112) 2,492 (14) 2,478

1,616 1,616 1,616

4,220 (112) 4,108 (14) 4,094

-

1,616 1,616 1,616

1,616 1,616 1,616

257 220 (35) 442 355 (14) 783

345 30 375 45 420

602 250 (35) 817 400 (14) 1,203

-

345 30 375 45 420

345 30 375 45 420

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131

Notes to the Financial Statements

5 Investment properties Shareholders' Fund Group 31.12.2010 RM'000 11,156 1,471 (668) (1) 11,958 30.6.2009 RM'000 26,369 (14,190) (890) (228) 121 (26) 11,156 Family Takaful 31.12.2010 RM'000 204,983 (206) 2,254 (51) 206,980 30.6.2009 RM'000 219,552 (30,012) (800) 228 16,200 (185) 204,983 General Takaful 31.12.2010 RM'000 28,954 280 29,234 30.6.2009 RM'000 43,052 (15,798) 1,700 28,954

At 1 July 2009/2008 - Additions - Disposal - Reclassified from/(to) assets held for sale (Note 12) - Transfer to Family Takaful Fund - Fair value (loss)/gain for the period/year - net - Translation difference At 31 December 2010/ 30 June 2009 Comprising of: Freehold land and building Leasehold land and building more than 50 years Leasehold land and building less than 50 years

5,305 6,515 138 11,958

4,214 6,805 137 11,156

165,981 32,475 8,524 206,980

165,553 31,030 8,400 204,983

17,354 5,280 6,600 29,234

17,354 5,000 6,600 28,954

The following are amounts arising from investment properties that have been recognised in the income statements/ revenue accounts during the financial period/year. Rental income 649 2,063 16,312 9,217 1,747 1,759

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Notes to the Financial Statements

5 Investment properties (continued) Shareholders' Fund Company 31.12.2010 RM'000 10,865 1,471 (671) 11,665 30.6.2009 RM'000 25,825 (14,190) (890) 120 10,865 Family Takaful 31.12.2010 RM'000 196,097 2,075 198,172 30.6.2009 RM'000 211,453 (30,012) (800) 15,456 196,097 General Takaful 31.12.2010 RM'000 28,954 280 29,234 30.6.2009 RM'000 43,052 (15,798) 1,700 28,954

At 1 July 2009/2008 - Additions - Disposal - Reclassified from/(to) assets held for sale (Note 12) - Fair value (loss)/gain for the period/year - net At 31 December 2010/ 30 June 2009 Comprising of: Freehold land and building Leasehold land and building more than 50 years Leasehold land and building less than 50 years

5,150 6,515 11,665

4,060 6,805 10,865

161,647 32,475 4,050 198,172

161,167 31,030 3,900 196,097

17,354 5,280 6,600 29,234

17,354 5,000 6,600 28,954

The following are amounts arising from investment properties that have been recognised in the income statements/ revenue accounts during the financial period/year. Rental income 643 2,058 15,511 8,618 1,747 1,759

The Group's properties were valued by independent firms of professional valuer, using the comparison, cost and investment methods of valuations, where applicable. In the comparison method approach, the sales and listings of comparable properties of within nearby locations are compiled. From the compiled data, adjustments are made by the valuer between the subject property and those similar properties. The adjustments made are in relation to location, size and shape of the lot, physical features, legal and legislative constraints, building design and condition, time element, planning provision, improvements and renovation works made, if any, surrounding developments, facilities and amenities available and other factors that may affect the value of the subject property. These adjustments are therefore subject to uncertainties such as property market outlook, potential increases in rental rates and general economic conditions. In the cost method approach, the indication of values consists of the sum of the present worth of the improvement value.

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Notes to the Financial Statements

5 Investment properties (continued) For the valuation of the improvements, the valuers have considered the following:i. Cost of replacement of the building in accordance with current trend of market prices for materials, labour, contractor's overhead, profit and fees; ii. Accrued depreciation as evidenced by the observed condition and present and prospective serviceability in comparison with new units of like kind; and; iii. Extent, character and utility of the property. The Investment method is the capitalisation of net rent from a property. Net rent is the residue of gross annual rent less annual expenses (outgoings) required to sustain the rent with allowance for void and management fees. The range of yield applied to the net annual rentals to determine fair value of the property is between 6% to 7% per annum. The external valuer has considered the results of all these three methods in their valuation and applied professional judgement in the selection of the fair value of these investment properties.

6

Investment in subsidiaries Company Unquoted shares, at cost Opening balance Increase in investment cost of existing subsidiary Impairment loss Reclassified from/(to) asset held for sale (Note 12) Closing balance Shareholders' Fund 31.12.2010 30.6.2009 RM'000 RM'000 72,247 (1,500) 70,747 27,550 21,825 22,872 72,247

The principal activities of the subsidiaries, their country of incorporation and the effective interest of Syarikat Takaful Malaysia Berhad are as follows:

Country of incorporation Effective interests 31.12.2010 30.6.2009 % %

Name of companies

Principal activities

Asean Retakaful International (L) Ltd. ("ARIL")** P.T. Syarikat Takaful Indonesia* and its subsidiaries P.T. Asuransi Takaful Umum* P.T. Asuransi Takaful Keluarga* * **

Family and general retakaful business

Malaysia

63.09

63.09

Investment holding General takaful business Family takaful business

Indonesia Indonesia Indonesia

56.00 64.70 74.80

56.00 64.70 74.80

Not audited by KPMG Desa Megat & Co Audited by a firm affiliated with KPMG Desa Megat & Co

During the previous financial year, the investment in ARIL has been reclassified from assets held for sale (see note12) as it no longer met the criteria.

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Notes to the Financial Statements

7 Investment in associate Investment in associate company amounting RM2,473,000 (2009: RM2,473,000) was fully written down during the financial year ended 30 June 2007. 8 Investments (a) Shareholders' Fund 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Group

Quoted: Shares - In Malaysia - Outside Malaysia Allowance for diminution

34,876 34,876 39,017

23,964 44 (1,502) 22,506 22,506

Unit trusts - In Malaysia - Outside Malaysia Allowance for diminution

42,695 5,814 48,509 49,823

30,445 3,043 (969) 32,519 32,445

Unquoted: Shares - In Malaysia - Outside Malaysia

380 46 426

380 47 427

Islamic debt securities - In Malaysia - Outside Malaysia Amortisation of premiums

42,856 2,916 (347) 45,425 46,223 36,860

61,920 8,798 (179) 70,539 29,954 70,214 30,246

Investment in investment-linked funds Deposits and money market placement with: Licensed banks - Local - Foreign Total investments Investments maturing more than twelve months

32,954

167,591 32,303 199,894 362,084 45,253

93,499 18,540 112,039 267,984 49,283

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Notes to the Financial Statements

8 Investments (continued) (a) Shareholders' Fund (continued) 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Company

Quoted: Shares - In Malaysia Allowance for diminution

34,876 34,876 39,017 43,813

23,964 (1,497) 22,467 30,445 22,467 30,371

Unit Trust

42,695

Unquoted: Shares - In Malaysia Islamic debt securities Amortisation of premiums

380 42,856 (347) 42,509 43,307 36,860

380 40,809 (179) 40,630 29,954 40,305 30,246

Investment in investment-linked funds Deposits and money market placement with: Licensed banks Total investments Investments maturing more than twelve months

32,954

139,848 293,262 42,509

78,477 202,353 40,830

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Notes to the Financial Statements

8 Investments (continued) (b) Family Takaful Fund 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Group

Quoted: Shares - In Malaysia - Outside Malaysia Allowance for diminution

272,814 74 272,888 292,582

148,792 1 (23,808) 124,985 125,468

Unit trusts - In Malaysia - Outside Malaysia Allowance for diminution

163,048 26,835 (1,037) 188,846 189,916

130,979 33,650 (6,645) 157,984 157,990

Unquoted: Malaysian Government Islamic papers (Amortisation of premiums)/accretion of discounts Allowance for diminution

571,670 (528) 571,142 578,828

511,875 8,347 (226) 519,996 518,220

Shares - In Malaysia Islamic debt securities - In Malaysia - Outside Malaysia Accretion of discounts Allowance for diminution

135

34

1,493,870 56,319 12,378 1,562,567 1,646,815

1,364,790 35,332 6,939 (393) 1,406,668 1,431,878

Deposits and money market placement with: Licensed banks - Local - Foreign

484,773 84,104 568,877

535,983 39,979 575,962 2,785,629 1,963,654

Total investments Investments maturing more than twelve months

3,164,455 2,117,472

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Notes to the Financial Statements

8 Investments (continued) (b) Family Takaful Fund (continued) 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Company

Quoted: Shares - In Malaysia Allowance for diminution

272,814 272,814 292,478

148,792 (23,808) 124,984 130,979 (88) 164,118 130,891 130,897 125,467

Unit trusts Allowance for diminution

163,048 163,048

Unquoted: Malaysian Government Islamic papers (Amortisation of premiums)/accretion of discounts Allowance for diminution

571,670 (528) 571,142 578,828

511,875 8,347 (226) 519,996 518,220

Shares - In Malaysia Islamic debt securities Accretion of discounts Allowance for diminution

135 1,493,870 12,411 1,506,281 1,588,889

34 1,364,790 6,939 (393) 1,371,336 1,396,546

Deposits and money market placement with: Licensed banks Total investments Investments maturing more than twelve months

484,773 2,998,193 2,067,089

519,227 2,666,468 1,930,879

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Notes to the Financial Statements

8 Investments (continued) (c) Investment-linked Fund 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Group

Quoted: Shares - In Malaysia - Outside Malaysia Unrealised gain/(loss)

23,262 3,222 26,484 26,484

15,302 (1,117) 14,185 14,185

Unit Trust - Outside Malaysia Unrealised gain/(loss)

45,535 11,333 56,868 56,868

44,140 (4,372) 39,768 39,768

Unquoted: Islamic debt securities - In Malaysia - Outside Malaysia Unrealised gain

13,744 7,545 282 21,571 21,571

6,588 7,627 14,215 14,215

Investment in commodity, equity and fixed income closed end fund Unrealised gain/(loss)

75,210 4,439 79,649 79,649

95,534 (8,588) 86,946 86,946

Deposits and money market placement with: Licensed banks - Local - Foreign

6,974 2,315 9,289

22,342 3,812 26,154 181,268

Total investments

193,861

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Notes to the Financial Statements

8 Investments (continued) (c) Investment-linked Fund (continued) 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Company

Quoted: Shares in Malaysia Unrealised gain/(loss)

23,262 3,222 26,484 26,484

15,302 (1,117) 14,185 14,185

Unquoted: Islamic debt securities Unrealised gain

13,744 294 14,038 14,038

6,588 6,588 6,588

Investment in commodity, equity and fixed income closed end fund Unrealised gain/(loss)

75,210 4,439 79,649 79,649

95,534 (8,588) 86,946 86,946

Deposits and money market placement with: Licensed banks Total investments

6,974 127,145

22,342 130,061

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Notes to the Financial Statements

8 Investments (continued) (d) General Takaful Fund 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Group

Quoted: Shares - In Malaysia Allowance for diminution

52,152 52,152 59,232

39,010 (1,012) 37,998 37,998

Unit trusts - In Malaysia - Outside Malaysia Allowance for diminution

33,156 909 34,065 34,887

31,985 2,568 (827) 33,726 33,726

Unquoted: Shares - In Malaysia Malaysian Government Islamic papers (Amortisation of premiums)/accretion of discounts

89 120,045 (278) 119,767 121,301

89 94,659 3,365 98,024 98,102

Islamic debt securities - In Malaysia - Outside Malaysia Accretion of discounts

245,452 1,715 2,310 249,477 258,832

228,307 235 228,542 229,490

Deposits and money market placement with: Licensed banks - Local - Foreign

157,548 17,491 175,039

120,151 6,498 126,649 525,028 339,881

Total investments Investments maturing more than twelve months

630,589 358,876

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Notes to the Financial Statements

8 Investments (continued) (d) General Takaful Fund (continued) 31.12.2010 Market Cost/ Value/ Valuation Fair Value RM'000 RM'000 30.6.2009 Cost/ Valuation RM'000 Market Value/ Fair Value RM'000

Company

Quoted: Shares - In Malaysia Allowance for diminution

52,152 52,152 59,232

39,010 (1,012) 37,998 31,985 (404) 33,882 31,581 31,581 37,998

Unit trusts Allowance for diminution

33,156 33,156

Unquoted: Shares - In Malaysia Malaysian Government Islamic papers (Amortisation of premiums)/accretion of discounts

89 120,045 (278) 119,767 121,301

89 94,659 3,365 98,024 228,307 235 257,117 228,542 229,490 98,102

Islamic debt securities Accretion of discounts

245,452 2,310 247,762

Deposits and money market placement with: Licensed banks Total investments Investments maturing more than twelve months

157,548 610,474 357,161

106,193 502,427 339,881

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Notes to the Financial Statements

9 Financing receivables Shareholders' Fund RM'000 2,653 14,708 (2,923) 14,438 14,412 Family Takaful RM'000 75,362 (2,986) 72,376 72,376 General Takaful RM'000 4,386 5,000 (3,066) 6,320 6,320

Group 31.12.2010 Secured financing Staff financing Unsecured financing Allowance for doubtful financing Total financing Amount receivable after twelve months 30.6.2009 Secured financing Staff financing Unsecured financing Allowance for doubtful financing Total financing Amount receivable after twelve months Company 31.12.2010 Secured financing Staff financing Unsecured financing Allowance for doubtful financing Total financing Amount receivable after twelve months 30.6.2009 Secured financing Staff financing Unsecured financing Allowance for doubtful financing Total financing Amount receivable after twelve months

3,068 11,840 (890) 14,018 10,200

5,772 3,793 3,000 (3,183) 9,382 6,396

4,668 2,000 (3,190) 3,478 2,000

2,310 10,617 (2,644) 10,283 10,268

75,362 (2,986) 72,376 72,376

4,386 5,000 (3,066) 6,320 6,320

2,483 11,818 (890) 13,411 9,593

5,772 3,000 (3,110) 5,662 3,000

4,668 2,000 (3,190) 3,478 2,000

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Notes to the Financial Statements

10 Qardh receivables Shareholders' Fund 31.12.2010 RM'000 Opening balance Decrease during the period/year Qardh written off (Note 27) Transfer from/(to) Assets held for sale (Note 12) Translation difference Closing balance 31,722 (26,826) 4,896 (2,995) (544) 1,357 Group 30.6.2009 RM'000 80,861 (50,810) 30,051 1,671 31,722 Company 31.12.2010 30.6.2009 RM'000 RM'000 28,274 (28,274) 80,861 (52,587) 28,274 28,274

The balance outstanding at 30 June 2009 of RM1.671 million transferred from assets held for sale was shown net of provision for impairment loss of RM20.308 million.

11 Receivables Shareholders' Fund RM'000 Family Takaful RM'000 General Takaful RM'000

Group 31.12.2010 Trade Receivables Due contributions Due from retakaful companies Allowance for bad and doubtful debts

-

44,744 8,347 53,091 (9,434) 43,657

67,580 22,704 90,284 (26,719) 63,565

Other Receivables Investment receivable Deposits Due from Shareholders' Fund (Note 14) Due from Family Takaful Fund (Note 14) Due from General Takaful Fund (Note 14) Due from ILB (Note 33) Sundry receivables 1,748 495 24,273 12,329 68 11,385 50,298 Total receivables 50,298 47,254 179 211 47,644 91,301 7,529 463 6,692 2,495 17,179 80,744

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Notes to the Financial Statements

11 Receivables (continued) Shareholders' Fund RM'000 Family Takaful RM'000 General Takaful RM'000

Group 30.6.2009 Trade Receivables Due contributions Due from retakaful companies Allowance for bad and doubtful debts

-

84,100 7,400 91,500 (22,670) 68,830

81,835 20,467 102,302 (46,994) 55,308

Other Receivables Investment receivable Deposits Due from Shareholders' Fund (Note 14) Due from Family Takaful Fund (Note 14) Due from General Takaful Fund (Note 14) Due from ILB (Note 33) Sundry receivables 1,896 631 11,395 19,148 3,908 9,763 46,741 Total receivables Company 31.12.2010 Trade Receivables Due contributions Due from retakaful companies Allowance for bad and doubtful debts 40,004 3,264 43,268 (7,976) 35,292 57,325 8,137 65,462 (23,047) 42,415 46,741 34,534 273 7,217 4,377 1,537 47,938 116,768 5,614 4,182 7,191 1,926 18,913 74,221

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Notes to the Financial Statements

11 Receivables (Continued) Shareholders' Fund RM'000 Other Receivables Investment receivable Deposits Due from Shareholders' Fund (Note 14) Due from Family Takaful Fund (Note 14) Due from General Takaful Fund (Note 14) Due from ILB (Note 33) Sundry receivables Total receivables Company 30.6.2009 Trade Receivables Due contributions Due from retakaful companies Allowance for bad and doubtful debts Other Receivables Investment receivable Deposits Due from Shareholders' Fund (Note 14) Due from Family Takaful Fund (Note 14) Due from General Takaful Fund (Note 14) Due from ILB (Note 33) Sundry receivables Total receivables 1,896 526 19,148 3,908 3,724 29,202 29,202 34,534 273 7,217 4,377 1,487 47,888 108,936 5,614 7,191 1,902 14,707 56,047 70,250 2,015 72,265 (11,217) 61,048 72,791 13,365 86,156 (44,816) 41,340 1,748 495 17,859 12,329 68 3,662 36,161 36,161 47,254 179 95 47,528 82,820 7,529 6,692 2,495 16,716 59,131 Family Takaful RM'000 General Takaful RM'000

During the period/year, the Group and the Company wrote off Due Contributions against the brought forward allowance for bad and doubtful debts as follows: Group Company Family General Family General Takaful Takaful Takaful Takaful RM'000 RM'000 RM'000 RM'000 Bad debts written-off - 31.12.2010 Bad debts written-off - 30.6.2009 5,060 16,999 11,051 10,239 5,060 17,836 11,051 9,075

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Notes to the Financial Statements

12 Assets held for sale As at 31 December 2010, the assets and liabilities held for sale are as follows: Group and Company Assets classified as held for sale Shareholders' Fund 31.12.2010 30.6.2009 RM'000 RM'000 i) Property and equipment held for sale comprise the following: Shareholders' Fund 31.12.2010 30.6.2009 RM'000 RM'000 Plant and equipment: Cost Accumulated depreciation 581 890 1,471 Family Takaful 31.12.2010 30.6.2009 RM'000 RM'000 800 800

Property and equipment (Note i) Reclassified from investment properties (Note 5)

-

943 (362) 581 Family Takaful 31.12.2010 30.6.2009 RM'000 RM'000 800 (800) 800 800

Group and Company

Shareholders' Fund 31.12.2010 30.6.2009 RM'000 RM'000 1,471 (1,471) 22,872 (22,872) 890 581 1,471

At 1 July 2009/2008 Reclassified to cost of investment in subsidiary - ARIL (Note 6) Reclassified (to)/from investment properties (Note 5) Reclassified from property and equipment (Note 3) Settlement for Asset held for sale At 31 December 2010/30 June 2009

The proposed sale of investment properties was aborted during the financial period as the potential buyer had withdrawn from the transaction. Accordingly, the properties has been reclassified to Investment Properties.

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Notes to the Financial Statements

13 Cash and bank balances Group 30.6.2009 RM'000 Company 31.12.2010 30.6.2009 RM'000 RM'000

Shareholders' Fund

31.12.2010 RM'000

Current account with a related company (Islamic financial institution) Other current accounts

167 2,524 2,691

1,933 5,663 7,596

348 1,973 2,321

1,690 4,783 6,473

Family Takaful Current account with a related company (Islamic financial institution) Other current accounts

1,019 8,285 9,304

25,104 28,154 53,258

1,516 2,852 4,368

23,970 24,012 47,982

General Takaful Current account with a related company (Islamic financial institution) Other current accounts

23 11,818 11,841

1,250 7,676 8,926

10,152 10,152

40 5,646 5,686

14 Payables Shareholders' Fund RM'000 278 1,231 463 12,502 33,337 47,811 Family Takaful RM'000 4,912 15,624 2,423 24,273 6,692 1,621 118,185 173,730 General Takaful RM'000 29,013 7,150 4,348 3,160 12,329 45,471 101,471

Group 31.12.2010 Due to retakaful companies Advanced takaful contribution Profit payable to participants Deposit payable Zakat payable Unclaimed monies Due to Shareholders' Fund (Note 11) Due to General Takaful Fund (Note 11) Due to ILB (Note 33) Wakalah fee reserves Other payables and accruals Total payables

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Notes to the Financial Statements

14 Payables (continued) Shareholders' Fund RM'000 648 1,221 2,188 4,182 7,217 31,020 46,476 Family Takaful RM'000 8,832 20,320 7,391 2,258 1,597 11,395 7,191 127,338 186,322 General Takaful RM'000 29,105 11,866 9,292 11,758 19,148 7 51,059 132,235

Group 30.6.2009 Due to retakaful companies Advanced takaful contribution Profit payable to participants Deposit payable Zakat payable Unclaimed monies Due to Shareholders' Fund (Note 11) Due to General Takaful Fund (Note 11) Due to Family Takaful Fund (Note 11) Due to ILB (Note 33) Other payables and accruals Total payables Company 31.12.2010 Due to retakaful companies Advanced takaful contribution Profit payable to participants Deposit payable Zakat payable Unclaimed monies Due to Shareholders' Fund (Note 11) Due to General Takaful Fund (Note 11) Due to ILB (Note 33) Wakalah fee reserves Other payables and accruals Total payables

278 154 9,800 22,489 32,721

1,928 15,624 1,908 17,859 6,692 1,621 110,821 156,453

24,872 7,150 4,253 3,160 12,329 41,856 93,620

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Notes to the Financial Statements

14 Payables (continued) Shareholders' Fund RM'000 648 379 2,188 7,217 22,645 33,077 Family Takaful RM'000 1,271 20,320 7,391 2,119 1,597 7,191 127,202 167,091 General Takaful RM'000 22,370 11,866 9,211 11,757 19,148 7 50,572 124,931

Company 30.6.2009 Due to retakaful companies Advanced takaful contribution Profit payable to participants Deposit payable Zakat payable Unclaimed monies Due to Shareholders' Fund (Note 11) Due to General Takaful Fund (Note 11) Due to Family Takaful Fund (Note 11) Due to ILB (Note 33) Other payables and accruals Total payables

15 Provision for outstanding claims 31.12.2010 Family General Takaful Takaful RM'000 RM'000 44,282 (266) 44,016 381,527 (154,882) 226,645 30.6.2009 Family General Takaful Takaful RM'000 RM'000 51,546 (3,416) 48,130 315,848 (144,443) 171,405

Group

Provision for outstanding claims Retakaful recoveries Net outstanding claims Company Provision for outstanding claims Retakaful recoveries Net outstanding claims

43,202 (266) 42,936

355,373 (154,882) 200,491

44,096 (3,416) 40,680

289,647 (144,443) 145,204

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Notes to the Financial Statements

16 Deferred taxation Shareholders' Fund Deferred tax assets and liabilities are attributable to the following:Assets 31.12.2010 30.6.2009 RM'000 RM'000 (32) (1,345) (1,933) (3,931) (121) (3,124) (2,752) (13,238) 259 (12,979) (2,303) (1,084) (2,931) (5,124) (5,617) (442) (17,501) 9,316 (8,185) Liabilities 31.12.2010 30.6.2009 RM'000 RM'000 259 259 (259) 1,951 7,069 16 280 9,316 (9,316) Net 31.12.2010 RM'000 (32) 259 (1,345) (1,933) (3,931) (121) (3,124) (2,752) (12,979) (12,979) Net 31.12.2010 RM'000 1,588 (1,345) (1,577) (2,081) (121) (2,449) (5,985) (5,985) 30.6.2009 RM'000 1,951 7,069 (974) (1,066) (2,209) 16 (3,491) 26 (5,617) (4,295) (4,295) 30.6.2009 RM'000 1,951 7,069 (2,303) (1,084) (2,931) 16 (5,124) 280 (5,617) (442) (8,185) (8,185)

Group

Property and equipment Qardh receivables Investments Financing receivables Receivables Unearned contribution reserves Payables Investment properties Wakalah fee reserves Unabsorbed capital allowances Unabsorbed tax losses Tax (assets)/liabilities Set off of tax Net tax (assets)/liabilities

Company

Assets 31.12.2010 30.6.2009 RM'000 RM'000 (1,345) (1,577) (2,081) (121) (2,449) (7,573) 1,588 (5,985) (974) (1,066) (2,209) (3,491) (5,617) (13,357) 9,062 (4,295)

Liabilities 31.12.2010 30.6.2009 RM'000 RM'000 1,588 1,588 (1,588) 1,951 7,069 16 26 9,062 (9,062) -

Property and equipment Qardh receivables Investments Financing receivables Receivables Unearned contribution reserves Payables Investment properties Wakalah fee reserves Unabsorbed capital allowances Tax (assets)/liabilities Set off of tax Net tax (assets)/liabilities

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Notes to the Financial Statements

16 Deferred taxation (continued) Shareholdes' Fund (continued) Movement in temporary differences during the year/period:As at 1 July 2008 RM'000 Recognised in income statement RM'000 As at 30 June 2009 RM'000 Recognised in income Exchange statement Differences/ (Note 30) Adjustment RM'000 RM'000 As at 31 December 2010 RM'000

Group

Exchange Differences RM'000

Property and equipment Qardh receivables Investments Financing receivables Receivables Investment properties Unearned contribution reserves Payables Wakalah fee reserves Unabsorbed capital allowances Unabsorbed tax losses Tax (assets)/ liabilities

3,595 21,024 (906) (2,091) (3,468) (6,177) (9,022) (19,595) (16,640)

(1,825) (13,955) (68) 1,008 387 269 16 (65) 3,405 19,190 8,362

181 (1,329) (1) 150 11 1,118 (37) 93

1,951 7,069 (2,303) (1,084) (2,931) 280 16 (5,124) (5,617) (442) (8,185)

(1,985) (7,069) 2,562 (260) 1,006 (409) (16) 1,176 (3,124) 5,617 (2,392) (4,894)

2 (1) (8) 8 17 82 100 Recognised in income statement (Note 30) RM'000 (1,951) (7,069) 2,562 (279) 632 (147) (16) 1,410 (2,449) 5,617 (1,690)

(32) 259 (1,345) (1,933) (121) (3,931) (3,124) (2,752) (12,979)

Company

As at 1 July 2008 RM'000 3,778 21,024 (906) (2,091) (2,595) (3,031) (9,022) (19,595) (12,438)

Recognised in income statement RM'000 (1,827) (13,955) (68) 1,025 386 26 16 (460) 3,405 19,595 8,143

As at 30 June 2009 RM'000 1,951 7,069 (974) (1,066) (2,209) 26 16 (3,491) (5,617) (4,295)

As at 31 December 2010 RM'000 1,588 (1,345) (1,577) (121) (2,081) (2,449) (5,985)

Property and equipment Qardh receivables Investments Financing receivables Receivables Investment properties Unearned contribution reserves Payables Wakalah fee reserves Unabsorbed capital allowances Unabsorbed tax losses Tax (assets)/liabilities

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Notes to the Financial Statements

17 Minority shareholders' interests This consists of the minority shareholder's proportion of share capital and reserves of subsidiaries.

18 Family Takaful Fund Group 31.12.2010 30.6.2009 RM'000 RM'000 Participants' Account (PA) At beginning of the period/year Increase in PA Profit attributable to participants Special reserve Translation reserve Seed capital At end of the period/year Participants' Special Account (PSA) At beginning of the period/year Increase in PSA Profit attributable to participants Movement in actuarial reserves Translation reserve At end of the period/year Group Family Takaful Account (GFTA) At beginning of the period/year Profit attributable to participants Movement in Qardh Movement in actuarial reserves Translation reserves At end of the period/year Family Takaful fund at end of the period/year 373,479 38,530 (29,170) (18,730) (287) 363,822 3,523,947 374,903 46,801 (55,840) 8,270 (655) 373,479 3,115,374 372,269 37,828 (28,274) (19,670) 362,153 3,286,708 368,390 46,724 (52,587) 9,742 372,269 2,945,051 678,815 127,683 63,043 428 (1,173) 868,796 606,290 45,968 26,870 (313) 678,815 677,642 126,542 53,149 428 857,761 606,484 44,576 26,582 677,642 2,063,080 23,152 196,830 7,413 (2,146) 3,000 2,291,329 1,930,073 57,321 57,366 3,625 (4,071) 18,766 2,063,080 1,895,140 3,484 157,757 7,413 3,000 2,066,794 1,775,038 37,875 59,836 3,625 18,766 1,895,140 Company 31.12.2010 30.6.2009 RM'000 RM'000

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Notes to the Financial Statements

18 Family Takaful Fund (continued) In the valuation of the Ordinary Participants' Special Account (PSA) and Mortgage Reducing Term Takaful (MRTT) of the Ordinary Group Family Takaful Account (GFTA) of the Company carried out by a qualified internal actuary, the net contribution method of valuation (with negative reserves eliminated) was used, based on certain underlying assumptions, including interest rates, mortality rates and disability rates. As with all projections, the projected future liability payable may be different from the actual amount payable due to inherent uncertainty involved in the assumptions used. For other products of GFTA, the unearned contribution reserves (UCR) were calculated by the Company, using the 1/365 method. In respect of the PSA and the Annuity Waqaf Account, the statutory valuation of the Company's Family Takaful Fund was made for the period ended 31 December 2010 and the results (before shareholders' transfer) showed a surplus of RM304,810,000 (2009: RM222,168,000) for the Company when compared the fund balance against the actuarial projected liabilities. In respect of the GFTA, the statutory valuation of the Company's Group Family Takaful Fund was made for the period ended 31 December 2010. During the year ended 30 June 2008, a Qardh was made in the GFTA of RM80,861,000 to make good the deficit in the fund for MRTT business. The deficit for the MRTT business has reduced to RM23,430,000 as at 31 December 2010 and Qardh was fully repaid during the financial period. No further injection of Qardh is required as there is sufficient other surplus from the GFTA other products valuation to mitigate the shortfall. GFTA for other products showed a reserving surplus (before shareholders' transfer) of RM161,829,000 (2009: RM126,874,000) for the Company. The valuation of the Participants' Special Account (PSA) and Group Family Takaful Account (GFTA) of the Indonesian subsidiary was carried out by a qualified internal actuary. The method used for PSA is based on prospective method (net level premium) on a policy-by-policy basis for inforce policies. As for the GFTA funds, the unearned contribution reserves were calculated by using the 1/365 method. The statutory valuation of the subsidiary's PSA and GFTA made for the period ended 31 December 2010, showed a deficit of RM1,078,000. 19 General Takaful Fund 31.12.2010 RM'000 Revenue account accumulated surplus Unearned contribution reserves (Note 20) Special reserves Statutory liabilities - Qardh Translation reserves 118,573 263,829 23,061 19,074 6,075 430,612 Revenue account accumulated surplus As at 1 July Net surplus attributable to participants for the financial period/year Profits payable to participants for the financial period/year Balance as at 31 December Group 30.6.2009 RM'000 61,650 230,121 23,061 19,245 2,890 336,967 Company 31.12.2010 30.6.2009 RM'000 RM'000 155,683 242,456 23,061 421,200 92,796 210,600 23,061 326,457

61,650 73,663 (16,740) 118,573

40,639 44,505 (23,494) 61,650

92,796 79,119 (16,232) 155,683

63,393 52,642 (23,239) 92,796

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Notes to the Financial Statements

20 Unearned Contribution Reserves Marine Aviation & Transit Miscellaneous RM'000 RM'000 2,825 414 3,239 26,935 (2,898) 24,037

Group 31.12.2010 At beginning of the period Increase/(Decrease) in unearned contribution reserves At end of the period 30.6.2009 At beginning of the year Incease/(Decrease) in unearned contribution reserves At end of the year

Fire RM'000 133,026 16,739 149,765

Motor RM'000 67,335 19,453 86,788

Total RM'000 230,121 33,708 263,829

128,315 4,711 133,026

42,505 24,830 67,335

3,027 (202) 2,825

20,473 6,462 26,935

194,320 35,801 230,121

Company 31.12.2010 At beginning of the period Increase/(Decrease) in unearned contribution reserves At end of the period 30.6.2009 At beginning of the year Increase/(Decrease) in unearned contribution reserves At end of the year

Fire RM'000 131,386 16,987 148,373

Motor RM'000 61,005 19,777 80,782

Marine Aviation & Transit Miscellaneous RM'000 RM'000 307 424 731 17,902 (5,332) 12,570

Total RM'000 210,600 31,856 242,456

125,645 5,741 131,386

36,807 24,198 61,005

529 (222) 307

19,181 (1,279) 17,902

182,162 28,438 210,600

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Notes to the Financial Statements

21 Share capital and reserves Group and Company 31.12.2010 30.6.2009 RM'000 RM'000 Authorised Ordinary shares of RM1.00 each Issued and fully paid Ordinary shares of RM1.00 each at 1 July 2009/2008 Issue of shares under the employee share option scheme On issue at 31 December 2010/30 June 2009

500,000

500,000

162,817 162,817

161,576 1,241 162,817

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.

22 Dividends Sen per share (net of tax) Total amount RM'000 8,853 8,548 Date of payment

1.7.2009 to 31.12.2010

Ordinary dividend paid, final for financial year 2009 Ordinary dividend paid, interim for financial period 2010 1.7.2008 to 30.6.2009 Ordinary dividend paid, final for financial year 2008 *

5.44 5.25

11/12/2009 8/10/2010

2.63

4,274

9/1/2009

After the balance sheet date, the following dividends were proposed by the Directors. These dividends will be recognised in subsequent financial reports upon approval by the shareholders. Sen per share (net of tax) Total amount RM'000 8,548

Finalproposedforfinancialperiod2010-ordinary

5.25

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Notes to the Financial Statements

23 Operating Revenue Shareholders' Fund RM'000 17,086 17,086 1.7.2008 to 30.6.2009 Gross contributions Investment income (Note 24) 9,289 9,289 Company 1.7.2009 to 31.12.2010 Gross contributions Investment income (Note 24) 12,352 12,352 1.7.2008 to 30.6.2009 Gross contributions Investment income (Note 24) 6,678 6,678 433,007 132,607 565,614 276,294 22,491 298,785 709,301 161,776 871,077 679,831 213,420 893,251 499,491 35,641 535,132 1,179,322 261,413 1,440,735 524,867 138,850 663,717 352,851 23,277 376,128 877,718 171,416 1,049,134 Family Takaful RM'000 839,909 228,693 1,068,602 General Takaful RM'000 606,354 36,546 642,900

Group 1.7.2009 to 31.12.2010 Gross contributions Investment income (Note 24)

Total RM'000 1,446,263 282,325 1,728,588

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Notes to the Financial Statements

24 Investment income Shareholders' Fund RM'000 4,115 7,742 1,088 311 2,514 1,499 649 (329) (503) 17,086 Family Takaful RM'000 124,716 26,491 1,010 136 21,586 32,396 16,312 7,124 (1,078) 228,693 General Takaful RM'000 16,836 6,310 585 1,953 2,337 5,889 1,747 1,068 (179) 36,546

Group 1.7.2009 to 31.12.2010 Islamic debt securities Deposit/money market placements Financing - Staff - Corporate Other income from investments Gross dividend from Shariah approved shares - Quoted in Malaysia Malaysian Government Islamic papers Rental of investment properties (Amortisation of premiums)/accretion of discounts Investment expenses Total investment income 1.7.2008 to 30.6.2009 Islamic debt securities Deposit/money market placements Financing - Staff - Corporate Other income from investments Gross dividend from Shariah approved shares - Quoted in Malaysia Malaysian Government Islamic papers Rental of investment properties (Amortisation of premiums)/accretion of discounts Investment expenses Total investment income

1,107 4,044 392 239 433 1,305 2,063 (64) (230) 9,289

74,999 28,028 995 8,274 15,939 9,217 4,460 (3,062) 138,850

8,584 5,913 381 800 2,177 3,170 1,759 799 (306) 23,277

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Notes to the Financial Statements

24 Investment income (continued) Shareholders' Fund RM'000 2,721 5,287 473 311 2,288 1,461 643 (329) (503) 12,352 Family Takaful RM'000 115,889 20,846 1,010 136 21,586 32,396 15,511 7,124 (1,078) 213,420 General Takaful RM'000 16,582 5,659 585 1,953 2,337 5,889 1,747 1,068 (179) 35,641

Company 1.7.2009 to 31.12.2010 Islamic debt securities Deposit/money market placements Financing - Staff - Corporate Other income from investments Gross dividend from Shariah approved shares - Quoted in Malaysia Malaysian Government Islamic papers Rental of investment properties (Amortisation of premiums)/accretion of discounts Investment expenses Total investment income 1.7.2008 to 30.6.2009 Islamic debt securities Deposit/money market placements Financing - Staff - Corporate Other income from investments Gross dividend from Shariah approved shares - Quoted in Malaysia Malaysian Government Islamic papers Rental of investment properties (Amortisation of premiums)/accretion of discounts Investment expenses Total investment income

608 2,014 392 239 356 1,305 2,058 (64) (230) 6,678

72,082 25,663 633 8,274 15,939 8,618 4,460 (3,062) 132,607

8,584 5,127 381 800 2,177 3,170 1,759 799 (306) 22,491

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Notes to the Financial Statements

25 Other operating income Shareholders' Fund RM'000 10,363 5,305 2,264 2,163 6,125 104 26,324 1.7.2008 to 30.6.2009 Income from ILB, service charge and management fees Miscellaneous income Fair value gain arising from investment properties Writeback of allowance for bad and doubtful debts Writeback of allowance for doubtful financing Gain on disposal of investments Gain on disposal of investment property Gain on disposal of property and equipment 7,363 7,860 121 2,045 44 356 61 17,850 213 16,200 3,203 1,038 754 21,408 (13) 1,700 5,578 1,950 957 396 10,568 Family Takaful RM'000 30,592 9,498 2,254 7,887 125 31,066 62,891 46 144,359 General Takaful RM'000 827 280 12,260 124 1,839 13,892 29,222

Group 1.7.2009 to 31.12.2010 Income from ILB, service charge and management fees Increase in value of investments Miscellaneous income Fair value gain arising from investment properties Writeback of allowance for bad and doubtful debts Writeback of allowance for doubtful financing Writeback of allowance for diminution in value of investments Gain on disposal of investments Gain on disposal of property and equipment

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Notes to the Financial Statements

25 Other operating income (continued) Shareholders' Fund RM'000 7,996 1,497 6,125 54 15,672 1.7.2008 to 30.6.2009 Income from ILB, service charge and management fees Miscellaneous income Fair value gain arising from investment properties Writeback of allowance for bad and doubtful debts Writeback of allowance for doubtful financing Gain on disposal of investments Gain on disposal of investment properties Gain on disposal of property and equipment 6,491 2,218 120 2,045 31 356 26 11,287 591 15,456 3,276 14,007 754 34,084 1,700 5,578 1,950 942 396 10,566 Family Takaful RM'000 16,529 15,061 2,075 125 25,333 53,662 112,785 General Takaful RM'000 2,819 280 11,780 124 1,416 13,892 30,311

Company 1.7.2009 to 31.12.2010 Income from ILB, service charge and management fees Increase in value of investments Miscellaneous income Fair value gain arising from investment properties Writeback of allowance for bad and doubtful debts Writeback of allowance for doubtful financing Writeback of allowance for diminution in value of investments Gain on disposal of investments Gain on disposal of property and equipment

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Notes to the Financial Statements

26 Management expenses Group 1.7.2009 to 31.12.2010 RM'000 121,480 5,574 983 207 155 128,399 Depreciation Amortisation of prepaid lease payments Audit fees - Company auditors - Other auditors Licence fees Legal fees Professional fees Rental of properties Rental of equipments Repair and maintenance - property and equipment Travelling expenses Utilities Communication costs Advertising Wakalah fee reserves Other expenses 13,307 400 374 89 616 323 11,058 11,701 4,061 10,325 4,968 4,107 9,901 5,228 12,502 23,922 112,882 Total management expenses 241,281 1.7.2008 to 30.6.2009 RM'000 76,277 2,726 766 9 148 79,926 10,567 250 300 61 371 374 8,928 8,261 5,067 5,759 3,266 2,292 6,113 2,539 14,346 68,494 148,420 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000 103,368 5,165 721 71 153 109,478 11,943 45 340 522 145 10,640 8,948 4,047 9,553 4,223 3,244 7,363 3,721 9,800 8,199 82,733 192,211 61,559 2,140 350 9 90 64,148 9,133 30 280 371 97 8,752 6,401 5,059 5,290 2,557 2,073 4,472 1,524 2,699 48,738 112,886

Shareholders' Fund Staff costs Directors' remuneration - Salaries and other emoluments - Fees Shariah Committee remuneration - Emoluments - Fees

All management expenses are incurred at the Shareholders' fund level. The estimated monetary value of benefits-inkind received by the directors, are RM13,000 (2009: RM154,000) and RM13,000 (2009: RM93,000) at Group and Company level respectively.

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Notes to the Financial Statements

27 Other operating expenses Shareholders' Fund RM'000 214 1,754 532 668 2,995 59,097 1,446 1,331 68,037 1.7.2008 to 30.6.2009 Allowance for diminution in value of investments Decrease in value of investments Allowance for bad and doubtful debts Write off of equipment Commissions Administrative and general expenses 2,192 1,196 1,582 9,583 901 15,454 Company 1.7.2009 to 31.12.2010 Allowance for diminution in value of investment in subsidiary Allowance for bad and doubtful debts Allowance for doubtful financing Write off of equipment and other assets Fair value loss arising from investment properties Commissions Miscellaneous expenses Administrative and general expenses 1,500 1,754 532 671 23,860 1,446 29,763 1.7.2008 to 30.6.2009 Allowance for diminution in value of investments Decrease in value of investments Allowance for bad and doubtful debts Write off of equipment Commissions Administrative and general expenses 1,666 1,582 1,367 4,615 9,785 9,520 15,340 1,408 36,053 1,343 2,774 4,117 469 1,605 2,074 448 448 5,470 13,699 20,963 1,408 41,540 1,661 2,082 5,020 8,763 Family Takaful RM'000 469 1,605 2,074 General Takaful RM'000 448 448

Group 1.7.2009 to 31.12.2010 Allowance for bad and doubtful debts Allowance for doubtful financing Write off of equipment and other assets Fair value loss arising from investment properties Qardh written off Commissions Miscellaneous expenses Administrative and general expenses

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Notes to the Financial Statements

28 Key Management Personnel Compensation Group 1.7.2009 to 31.12.2010 RM'000 Directors Executive: Salaries and other emoluments Benefits-in-kind 1.7.2008 to 30.6.2009 RM'000 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000

5,309 10 5,319

2,472 121 2,593

5,165 10 5,175

2,140 61 2,201

Non-Executive: Other emoluments Fees Benefits-in-kind

265 983 3 1,251

254 766 33 1,053

721 3 724

350 32 382

Other key management personnel: Short-term employment benefits Benefits-in-kind

5,451 180 5,631

3,515 114 3,629 7,275

4,417 4,417 10,316

2,248 10 2,258 4,841

Total

12,201

29 Employee information Group 1.7.2009 to 31.12.2010 RM'000 Staff costs 121,480 1.7.2008 to 30.6.2009 RM'000 76,277 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000 103,368 61,559

The number of employees of the Group and of the Company at the end of the period were 1,449 (2009: 1,488) and 925(2009: 945) respectively. Staff costs of the Group and of the Company includes contributions to the Employees Provident Fund of RM13,564,512 (2009: RM8,046,947) and RM13,277,867 (2009 : RM7,843,780) respectively.

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Notes to the Financial Statements

30 Tax expense Group 1.7.2009 to 31.12.2010 RM'000 Current tax expense Malaysian - current Overseas - current Under provision in prior years 1.7.2008 to 30.6.2009 RM'000 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000

36,579 17 7,919 44,515

37 37

36,579 7,919 44,498

-

Deferred tax (benefits)/expense Origination and reversal of temporary differences Over provision in prior years

(4,894) (4,894) 39,621 Group 1.7.2009 to 31.12.2010 RM'000

10,008 (1,646) 8,362 8,399

(1,690) (1,690) 42,808

9,789 (1,646) 8,143 8,143

1.7.2008 to 30.6.2009 RM'000

Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000

Reconciliation of effective tax expense Profit before zakat and taxation Income tax using Malaysian tax rate Items not subject to tax Non deductible expenses Under/(over) provision of tax in prior years Tax expense 97,886 24,472 (14,104) 21,334 31,702 7,919 39,621 49,715 12,429 (5,263) 2,879 10,045 (1,646) 8,399 93,022 23,256 (7,618) 19,251 34,889 7,919 42,808 45,831 11,458 (4,843) 3,174 9,789 (1,646) 8,143

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Notes to the Financial Statements

31 Earnings per share - Group (a) Basic earnings per share The calculation of basic earnings per share is based on the net profit attributable to ordinary shareholders of RM56,346,000 (2009 - RM39,394,000) and the weighted average number of ordinary shares issued during the period of 162,817,000 (2009 - 162,716,000). Weighted average number of ordinary shares 31.12.2010 '000 (units) Issued ordinary shares at beginning of the period/year Effect of new shares issued Weighted average number of ordinary shares 162,817 162,817 30.6.2009 '000 (units) 161,576 1,140 162,716

32 Net Claims Incurred Marine, Aviation & Transit Miscellaneous RM'000 RM'000

Fire RM'000 Group 1.7.2009 to 31.12.2010 Gross claims paid less salvage Retakaful recoveries Net claims paid Net outstanding claims: At end of the period At beginning of the period Net claims incurred 1.7.2008 to 30.6.2009 Gross claims paid less salvage Retakaful recoveries Net claims paid Net outstanding claims: At end of the year At beginning of the year Net claims incurred 46,110 (30,218) 15,892 54,964 (33,900) 21,064

Motor RM'000

Total RM'000

103,742 (4,864) 98,878

59,690 (52,954) 6,736

83,710 (37,755) 45,955

302,106 (129,473) 172,633

25,193 (26,823) 19,434

136,471 (76,509) 158,840

14,886 (10,643) 10,979

50,095 (57,430) 38,620

226,645 (171,405) 227,873

50,540 (5,279) 45,261

23,532 (18,049) 5,483

40,095 (15,730) 24,365

160,277 (69,276) 91,001

26,823 (44,519) (1,804)

76,509 (62,587) 59,183

10,643 (12,904) 3,222

57,430 (65,588) 16,207

171,405 (185,598) 76,808

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Notes to the Financial Statements

32 Net Claims Incurred (continued) Marine, Aviation & Transit Miscellaneous RM'000 RM'000

Fire RM'000 Company 1.7.2009 to 31.12.2010 Gross claims paid less salvage Retakaful recoveries Net claims paid Net outstanding claims: At end of the period At beginning of the period Net claims incurred 1.7.2008 to 30.6.2009 Gross claims paid less salvage Retakaful recoveries Net claims paid Net outstanding claims: At end of the year At beginning of the year Net claims incurred 38,522 (29,483) 9,039 33,040 (18,679) 14,361

Motor RM'000

Total RM'000

82,931 (2,599) 80,332

51,267 (48,984) 2,283

72,512 (33,710) 38,802

239,750 (103,972) 135,778

20,267 (21,050) 13,578

129,010 (70,090) 139,252

10,586 (6,138) 6,731

40,628 (47,926) 31,504

200,491 (145,204) 191,065

41,137 (4,091) 37,046

21,347 (17,868) 3,479

34,505 (15,319) 19,186

135,511 (66,761) 68,750

21,050 (34,665) (4,576)

70,090 (57,961) 49,175

6,138 (7,065) 2,552

47,926 (54,742) 12,370

145,204 (154,433) 59,521

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Notes to the Financial Statements

33 Investment-linked business (ILB) Balance Sheet as at 31 December 2010 Assets Investments (Note 8) Receivables Due from Family Takaful Fund (Note 14) Due from General Takaful Fund (Note 14) Cash and bank balances Total ILB assets Liabilities Provision for outstanding claims Payables Due to Shareholders' Fund (Note 11) Due to Family Takaful Fund (Note 11) Total ILB liabilities Net asset value of funds Revenue account for the period ended 31 Dcember 2010 Gross contributions Retakaful (Increase)/Decrease in unearned contribution reserves Net contributions Benefits paid and payable Death/disability Surrenders Others Maturities 26,149 (75) 26,074 (589) 25,485 33,052 (132) 32,920 9 32,929 7,531 (75) 7,456 (589) 6,867 3,032 (132) 2,900 9 2,909 453 3,253 68 3,774 197,277 3,073 3,242 3,908 4,377 14,600 179,006 453 3,253 68 3,774 130,168 3,073 3,242 3,908 4,377 14,600 126,877 31.12.2010 RM'000 193,861 3,098 1,621 2,471 201,051 Group 30.6.2009 RM'000 181,268 5,053 7 7,278 193,606 Company 31.12.2010 30.6.2009 RM'000 RM'000 127,145 3,098 1,621 2,078 133,942 130,061 5,052 7 6,357 141,477

(345) (48,187) (135) (233) (48,900)

(120) (12,702) (3) (12,825) (131) 19,973

(345) (25,908) (135) (233) (26,621) (880) (11) (20,645)

(120) (3,858) (3) (3,981) (131) (1,203)

Wakalah fee Net administration fee Underwriting (loss)/profit

(880) (11) (24,306)

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Notes to the Financial Statements

33 Investment-linked business (ILB) (continued) Group Comprises: 1.7.2009 to 31.12.2010 RM'000 (26,502) 2,196 (24,306) 26,502 2,196 2,409 39,793 (1,782) 1.7.2008 to 30.6.2009 RM'000 19,660 313 19,973 (19,660) 313 (12,312) 115 (16,671) Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000 (22,841) 2,196 (20,645) 22,841 2,196 2,409 20,850 (1,782) (1,516) 313 (1,203) 1,516 313 1,254 115 (12,300)

Underwriting (loss)/profit - Individual Family ILB Underwriting profit - Group Family ILB

Less: Underwriting (loss)/profit - Individual Family ILB Underwriting profit - Group Family ILB Investment income Other operating income Other operating expenses Profit/(loss) attributable to the Company and participants after excluding underwriting profit Individual Family ILB Profit attributable to the Company transferred to Income Statement Profit/(loss) attributable to participants for the period/year Family ILB Fund at beginning of the period/year Underwriting (loss)/profit - Individual Family ILB Profit/(loss) attributable to participants for the period/year Unearned contribution reserves Seed capital Translation reserves Family ILB Fund at end of the period/year

42,616 (1,130) 41,486 179,006 (26,502) 41,486 589 3,000 (302) 197,277

(28,555) (177) (28,732) 165,050 19,660 (28,732) (9) 18,766 4,271 179,006

23,673 (1,130) 22,543 126,877 (22,841) 22,543 589 3,000 130,168

(10,618) (177) (10,795) 120,431 (1,516) (10,795) (9) 18,766 126,877

34 Related parties For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

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Notes to the Financial Statements

34 Related parties (continued) Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel includes all the Directors of the Group, and certain members of senior management of the Group. Compensation paid to key management personnel have been disclosed in Note 28. Significant transactions with related parties during the period/year are as follows. Balances outstanding in respect of these transactions are disclosed in Notes 11 and 14. Group 1.7.2009 to 31.12.2010 RM'000 Ultimate holding corporation Contribution income for family takaful Contribution income for general takaful Subsidiary company (Note 6) Contribution for facultative and treaty outward Related companies Rental income Contribution for family takaful Contribution for general takaful Investment income Lease rental expense Bank commissions 1.7.2008 to 30.6.2009 RM'000 Company 1.7.2009 1.7.2008 to to 31.12.2010 30.6.2009 RM'000 RM'000

866 1,891

3,011 2,459

866 1,891

3,011 2,459

-

-

49

1,021

4,414 1,326 3,023 933 591 928

7,368 2,020 927 394 234

4,414 1,326 3,023 933 591 928

7,368 2,020 927 394 234

35 Operating leases Total future minimum lease payments under non-cancellable operating leases are as follows: Group and Company 31.12.2010 30.6.2009 RM'000 RM'000 Non-related parties: Less than one year Between one and five years Related party: Less than one year Between one and five years Lease commitments are wholly payable from the Shareholders' fund. The Group and the Company lease a number of computers and equipment under operating leases. The leases typically run an initial period of five years, with an option to renew the lease after that date.

1,195 1,585 38 493

495 4,487 38 1,084

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Notes to the Financial Statements

36 Capital commitments Group and Company 31.12.2010 30.6.2009 RM'000 RM'000 Authorised by the Directors and contracted for 23,623 1,841

37 Segmental information Segment information is presented in respect of the Group's geographical segments. This is based on the Group's management and internal reporting structure. Inter-segment pricing if any, is determined based on negotiated terms. The Group does not present information by business segment as it is principally engaged as an operator of Family and General takaful/retakaful business. The financial position and performance of the Family and General takaful businesses managed have been disclosed separately within these financial statements. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise expenses, which are all incurred by Shareholders Funds' for the management of Takaful funds. Segment capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for more than one year. Geographical segments In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are also based on the geographical location of assets. Geographical segments Malaysia RM'000 Indonesia RM'000 Eliminations RM'000 Consolidated RM'000

1.7.2009 to 31.12.2010 Total external revenue Inter-segment revenue Total segment revenue Segment result Finance costs Profit before zakat and taxation Zakat Tax expense Profit for the period 1,464,794 1,464,794 89,559 263,794 263,794 8,327 1,728,588 1,728,588 97,886 97,886 (516) (39,621) 57,749

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Notes to the Financial Statements

37 Segmental information (continued) Geographical segments Malaysia RM'000 4,610,122 4,249,571 6,618 11,988 27 Indonesia RM'000 334,329 281,836 1,330 1,719 1,184 Eliminations RM'000 Consolidated RM'000 4,944,451 4,531,407 7,948 13,707 1,211

Segment assets by location of assets Segment liabilities by location of liabilties Capital expenditure by location of assets Depreciation and amortisation Non cash expenses other than depreciation and amortisation 1.7.2008 to 30.6.2009 Total external revenue Inter-segment revenue Total segment revenue Segment result Finance costs Profit before zakat and taxation Zakat Tax expense Profit for the year Segment assets by location of assets Segment liabilities by location of liabilties Capital expenditure by location of assets Depreciation and amortisation Non cash expenses other than depreciation and amortisation

896,982 896,982 48,512

152,152 152,152 1,203

-

1,049,134 1,049,134 49,715 49,715 (862) (8,399) 40,454

4,114,287 3,788,199 4,152 9,163 23,192

257,948 206,591 693 1,654 -

-

4,372,235 3,994,790 4,845 10,817 23,192

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Notes to the Financial Statements

37 Segmental information (continued) Segmental Information on Cash Flow Shareholders' Fund RM'000 Family Takaful RM'000 General Takaful RM'000

Group 1.7.2009 to 31.12.2010 Cash flows from: Operating activities Investing activities Financing activities

Total RM'000

20,288 (7,792) (17,401) (4,905)

(49,767) 1,006 (48,761) (48,761) 60,536 11,775

2,915 2,915 2,915 8,926 11,841

(26,564) (6,786) (17,401) (50,751) (50,751) 77,058 26,307

Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents: At beginning of the period At end of the period 1.7.2008 to 30.6.2009 Cash flows from: Operating activities Investing activities Financing activities

(4,905) 7,596 2,691

(9,900) 10,085 (2,784) (2,599)

(86,851) 30,538 (56,313) (56,313) 116,849 60,536

(47,545) 16,194 (31,351) (31,351) 40,277 8,926

(144,296) 56,817 (2,784) (90,263) (90,263) 167,321 77,058

Net decrease in cash and cash equivalents Cash and cash equivalents: At beginning of the year At end of the year

(2,599) 10,195 7,596

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Notes to the Financial Statements

37 Segmental information (continued) Segmental Information on Cash Flow (continued) Shareholders' Fund RM'000 Family Takaful RM'000 General Takaful RM'000

Company 1.7.2009 to 31.12.2010 Cash flows from: Operating activities Investing activities Financing activities

Total RM'000

19,748 (6,498) (17,401) (4,151)

(48,694) 800 (47,894) (47,894) 54,339 6,445

4,466 4,466 4,466 5,686 10,152

(24,480) (5,698) (17,401) (47,579) (47,579) 66,498 18,919

Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents: At beginning of the period At end of the period 1.7.2008 to 30.6.2009 Cash flows from: Operating activities Investing activities Financing activities

(4,151) 6,473 2,322

12,315 (11,355) (2,784) (1,824)

(78,120) 30,766 (47,354) (47,354) 101,693 54,339

(45,372) 16,194 (29,178) (29,178) 34,864 5,686

(111,177) 35,605 (2,784) (78,356) (78,356) 144,854 66,498

Net decrease in cash and cash equivalents Cash and cash equivalents: At beginning of the year At end of the year

(1,824) 8,297 6,473

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Notes to the Financial Statements

38 Financial Risks Financial risk management objectives and policies Exposure to underwriting, credit, currency and liquidity risks arises in the normal course of the Group and the Company's operations. The Group and the Company are guided by risk management policies and guidelines that set out their overall business strategies and general risk management philosophy. The Group and the Company have established processes to monitor the risk on an ongoing basis. Underwriting risk Underwriting risk includes the risk of incurring higher claims costs than expected owing to the random nature of claims and their frequency and severity and the risk of change in legal or economic conditions or behavioural patterns affecting takaful pricing and conditions of takaful or retakaful cover. This may result in the situation of having either received too little contribution for the risks it has agreed to underwrite and hence has not enough funds to invest and pay claim, or claims are in excess of those expected. The Group and the Company seek to minimise underwriting risks with a balanced mix and spread of business between classes of business and by observing underwriting guidelines and limits, conservative estimation of the claims provisions and high standards applied to security for retakaful. Credit risk Credit risk represents the loss that would be recognised if counter parties to takaful, retakaful and investment transactions failed to perform as contracted. Exposure to credit risk is monitored on an ongoing basis. At balance sheet date, approximately 5.2% of the Group and the Company's fixed deposits are placed with a related company. The maximum exposure to credit risk for the Group and the Company is represented by the carrying amount of each financial asset. Foreign currency risk The Group and the Company incur foreign currency risk on transactions that are denominated in a currency other than Ringgit Malaysia and also the translation of the financial statements of the subsidiaries to Ringgit Malaysia. The Group and the Company do not hedge their foreign currency risks and therefore exposures to foreign currency risk are monitored on an ongoing basis. Liquidity risk The Group monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance the Group's operations and to mitigate the effects of fluctuations in cash flows.

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Notes to the Financial Statements

38 Financial Risks (continued) Financial instruments Effectiveprofitratesandrepricinganalysis In respect of profit-earning financial assets, the following table indicates their effective profit rates at the balance sheet date and the periods in which they reprice or mature, whichever is earlier. Shareholders' Fund Effective Profit Rate % Less than 1 year RM'000 More than 5 years RM'000

Group 31.12.2010

Total RM'000

1-2 years RM'000

2 -3 years RM'000

3-4 years RM'000

4-5 years RM'000

Financial assets Islamic debt securities Secured financing Deposit and money market placement Staff financing Total Group 30.6.2009 Financial assets Islamic debt securities Secured financing Deposit and money market placement Staff financing Total 4.29 10.57 2.40 3.55 70,539 2,364 112,039 11,654 196,596 21,456 1,757 111,839 2,061 137,113 863 22 200 24 1,109 1,380 191 147 1,718 690 262 161 1,113 12,281 132 771 13,184 33,869 8,490 42,359 5.92 9.05 3.19 3.74 45,425 1,647 199,894 12,791 259,757 172 8 199,894 18 200,092 5,583 17 78 5,678 25,829 1,609 151 27,589 13 408 421 3,929 1,665 5,594 9,912 10,471 20,383

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Notes to the Financial Statements

38 Financial Risks (continued) Family Takaful Fund Effective Profit Rate % Less than 1 year RM'000 More than 5 years RM'000

Group 31.12.2010

Total RM'000

1-2 years RM'000

2 -3 years RM'000

3-4 years RM'000

4-5 years RM'000

Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total Group 30.6.2009 Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total 5.47 3.50 11.27 2.85 1,406,668 519,996 9,382 575,962 2,512,008 32,601 2,986 506,371 541,958 36,022 26,030 62,052 99,483 73,580 38,561 211,624 89,073 20,018 3,382 112,473 79,350 5,160 3,000 87,510 1,070,139 421,238 14 5,000 1,496,391 5.34 4.02 4.72 3.23 1,562,567 571,142 72,376 568,877 2,774,962 41,290 4,895 538,929 585,114 37,909 10,011 21,948 69,868 133,822 29,964 2,376 166,162 83,337 5,111 88,448 170,141 88,730 3,000 261,871 1,096,068 432,431 70,000 5,000 1,603,499

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Notes to the Financial Statements

38 Financial Risks (continued) General Takaful Fund Effective Profit Rate % Less than 1 year RM'000 More than 5 years RM'000

Group 31.12.2010

Total RM'000

1-2 years RM'000

2 -3 years RM'000

3-4 years RM'000

4-5 years RM'000

Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total Group 30.6.2009 Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total 4.85 3.35 9.42 3.01 228,542 98,024 3,478 126,649 456,693 1,478 113,334 114,812 10,021 9,440 19,461 32,880 18,615 3,875 55,370 13,905 13,905 21,222 15,337 2,000 38,559 150,514 64,072 214,586 4.83 4.18 5.50 3.28 249,477 119,767 6,320 175,039 550,603 13,843 171,564 185,407 10,685 1,475 12,160 31,529 1,320 32,849 39,377 20,377 59,754 20,610 21,390 2,000 44,000 133,433 78,000 5,000 216,433

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Notes to the Financial Statements

38 Financial Risks (continued) Shareholders' Fund Effective Profit Rate % Less than 1 year RM'000 More than 5 years RM'000

Company 31.12.2010

Total RM'000

1-2 years RM'000

2 -3 years RM'000

3-4 years RM'000

4-5 years RM'000

Financial assets Islamic debt securities Secured financing Deposit and money market placement Staff financing Total Company 30.6.2009 Financial assets Islamic debt securities Secured financing Deposit and money market placement Staff financing Total Family Takaful Fund Company 31.12.2010 Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total 5.53 4.02 4.72 2.92 1,506,281 571,142 72,376 484,773 2,634,572 35,387 4,895 454,825 495,107 30,097 10,011 21,948 62,056 124,172 29,964 2,376 156,512 64,760 5,111 69,871 166,557 88,730 3,000 258,287 1,085,308 432,431 70,000 5,000 1,592,739 6.17 10.00 2.36 3.55 40,630 1,757 78,477 11,654 132,518 1,757 78,277 2,061 82,095 200 24 224 147 147 161 161 10,901 771 11,672 29,729 8,490 38,219 5.49 9.00 3.21 3.55 42,509 1,584 139,848 8,699 192,640 139,848 15 139,863 3,525 58 3,583 25,829 1,584 115 27,528 313 313 3,586 1,059 4,645 9,569 7,139 16,708

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Notes to the Financial Statements

38 Financial Risks (continued) Family Takaful Fund (continued) Effective Profit Rate % Less than 1 year RM'000 More than 5 years RM'000

Company 30.6.2009

Total RM'000

1-2 years RM'000

2 -3 years RM'000

3-4 years RM'000

4-5 years RM'000

Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total General Takaful Fund Company 31.12.2010 Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total 4.78 4.18 5.50 3.11 247,762 119,767 6,320 157,548 531,397 13,843 154,073 167,916 9,999 1,475 11,474 31,529 1,320 32,849 38,691 20,377 59,068 20,267 21,390 2,000 43,657 133,433 78,000 5,000 216,433 5.50 3.50 9.47 3.04 1,371,336 519,996 5,662 519,227 2,416,221 30,044 2,662 449,636 482,342 29,122 26,030 55,152 89,133 73,580 38,561 201,274 82,173 20,018 102,191 70,725 5,160 3,000 78,885 1,070,139 421,238 5,000 1,496,377

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Notes to the Financial Statements

38 Financial Risks (continued) General Takaful Fund Effective Profit Rate % Less than 1 year RM'000 More than 5 years RM'000

Company 30.6.2009

Total RM'000

1-2 years RM'000

2 -3 years RM'000

3-4 years RM'000

4-5 years RM'000

Financial assets Islamic debt securities Malaysian Government Islamic papers Secured and unsecured financing Deposit and money market placement Total 4.85 3.35 9.42 2.90 228,542 98,024 3,478 106,193 436,237 1,478 92,878 94,356 10,021 9,440 19,461 32,880 18,615 3,875 55,370 13,905 13,905 21,222 15,337 2,000 38,559 150,514 64,072 214,586

39 Retained Profits Subject to agreement by the Inland Revenue Board, the Company has sufficient Section 108 tax credit to frank approximately RM19.8 million of its retained profits at 31 December 2010 if paid out as taxable dividends. The Malaysian Budget 2008 introduced a single tier company income tax system with effect from year of assessment 2008. As such, the section 108 tax credit balance as at 31 December 2007 will be available to the Company until such time the credit is fully utilised or upon expiry of the six year transitional period on 31 December 2013, whichever is earlier.

40 Contingent liability Prior to the amendments of Section 60AA of the Income Tax Act 1967 (Section 60AA), capital allowances had been claimed by way of deduction from tax adjusted income in both General and Family Takaful Funds whilst the Shareholders Fund is not entitled to claim capital allowances. The amended Section 60AA stipulates that the tax adjusted income of the Shareholders' Fund shall be ascertained by taking into account the amount of income distributed or credited from Family and General Takaful Funds and as a result both General and Family Takaful Funds would no longer have taxable income. As such, capital allowances of the said Funds claimable for the years of assessment from 1997 to 2008 would be carried forward indefinitely as the operator's share of profits from the Family and General Fund will be taxed in the Shareholders Fund. The Company has presented the issue on non-deductibility of capital allowances to the Ministry of Finance (MOF) on 30 March 2009. The MOF has agreed via letter dated 2 April 2009 to review the tax issue and thereafter, will advise the Company accordingly. Whilst, the Company will continue to pursue the appeal with the MOF, no credit for deferred tax asset has been taken in relation to unabsorbed capital allowances for year of assessment 2008 onwards.

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Notes to the Financial Statements

40 Contingent liability (continued) During the financial period, the Inland Revenue Board has issued Forms JA (additional assessments) for years of assessment 1997, 1999 and 2000 CYB to 2004 amounting to RM16.3 million based on the amended Section 60AA. The Company has appealed against the said Forms JA with reference to the Ministry of Finance (MoF)'s letter dated 30 January 2008 issued to the Malaysian Takaful Association. The MOF letter states that the Minister of Finance agrees to allow an exemption from income tax on the additional income arising from the application of the different tax treatment prior and subsequent to the Budget 2008 announcement beginning from the year of assessment 1997 under Section 127 (3A) of the Income Tax Act 1967 for companies in the takaful industry. Based on the opinion of the Company's tax agent and by virtue of the MOF's letter and provision of Section 127 (3A), the Board of Directors is of the view that the Company has a justification that these additional assessments will be exempted.

41 Subsequent Event On 4 March 2011, the Company was served with a Writ of Summons by Lembaga Kemajuan Tanah Persekutuan (FELDA) whereby FELDA is claiming for among others death benefits of RM13,156,000 and personal accident benefits of RM290,000 under a Group Family Takaful contract. The Court has fixed the matter for further Case Management on 30 March 2011. Out of the total claims, the Company has provided for RM5,490,000 and as for the remaining claims, the Board of Directors is of the view that there is a sustainable defence based on the legal opinion provided by the Company's solicitor.

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Notes to the Financial Statements

42 Supplementary information on the breakdown of realised and unrealised profits or losses On 25 March 2010, Bursa Malaysia Securities Berhad ("Bursa Malaysia") issued a directive to all listed issuers pursuant to Paragraphs 2.06 and 2.23 of Bursa Malaysia Main Market Listing Requirements. The directive requires all listed issuers to disclose the breakdown of the unappropriated profits or accumulated losses as at the end of the reporting period, into realised and unrealised profits or losses. On 20 December 2010, Bursa Malaysia further issued another directive on the disclosure and the prescribed format of presentation. The breakdown of the retained profits of the Group and of the Company as at 31 December 2010, into realised and unrealised profits, pursuant to the directive, is as follows: 2010 Company RM'000

Group RM'000 Total retained profits of the Company and its subsidiaries: - Realised - Unrealised Total share of retained profits of associates: - Realised - Unrealised Add: Consolidation adjustments Total retained profits

205,370 (2,164) 203,206 21,960 225,166

240,945 (12,177) 228,768 228,768

The determination of realised and unrealised profits is based on the Guidance of Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by Malaysian Institute of Accountants on 20 December 2010.

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183

Maklumat Hartanah

Particulars of Properties

No. Lokasi/ Location Penerangan Kegunaan/ Description of Existing Use Hakmilik/ Tenure Usia Bangunan/ Age of Building (tahun/years) Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet) 1 Lot 557 & 559 Plaza Melaka Jalan Hang Tuah 75300 Melaka No. 325A & 325B Blok 41, Kompleks Perniagaan Fajar 91000 Tawau Sabah Dua unit Rumah kedai/ Pejabat 4 1/2 tingkat Two units of 4 1/2 storey Shophouse/Office Tiga unit Kompleks Perniagaan/ Pejabat 4 tingkat Three units of 4 storey Commercial Complex/ Office Dua unit Rumah kedai/ Pejabat 2 tingkat Two units of 2 storey Shophouse/Office Pegangan Bebas Freehold 27 3,485/ 14,434 Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 1,490,000 31.12.2010 Tarikh Penilaian Semula/ Date of Revaluation

2

Pajakan bandar 999 tahun berakhir pada 31.12.2895 999 years town lease expiring on 31.12.2895 Pegangan Bebas Freehold

19

4,025/ 6,037

2,235,000

31.12.2010

3

No. 64 & 65 Kompleks Jitra Jalan Sungai Korok 06000 Jitra Kedah Darul Aman No. 23 Medan Istana 3 Bandar Ipoh Raya 30450 Ipoh Perak Darul Ridzuan No. 84 Batu 3 1/4 Jalan Gombak 53000 Kuala Lumpur Lot 6966, Blok 59 Muara Tuang Jalan Datok Mohd Musa 94300 Kota Samarahan Sarawak Lot 54 & 55 Bandar Wilayah Jasa Jalan Bunga Raya 91100 Lahad Datu Sabah

24

3,095/ 6,935

690,000

31.12.2010

4

Satu unit Rumah kedai/ Pejabat 3 tingkat One unit of 3 storey Shophouse/Office

Pajakan 99 tahun berakhir pada 30.03.2081 99 years lease expiring on 30.03.2081 Pegangan Bebas Freehold

15

1,539/ 4,255

480,000

31.12.2010

5

Satu unit Rumah kedai/ Pejabat 5 tingkat One unit of 5 storey Shophouse/Office Satu unit Rumah kedai/ Pejabat 3 tingkat One unit of 3 storey Shophouse/Office

24

1,883/ 8,700

890,000

31.12.2010

6

Pajakan 60 tahun berakhir pada 31.12.2053 60 years lease expiring on 31.12.2053 Pajakan bandar 99 tahun berakhir pada 31.12.2090 99 years town lease expiring on 31.12.2090

15

1,312/ 3,750

575,000

31.12.2010

7

Dua unit Rumah kedai/ Pejabat 3 tingkat Two units of 3 storey Shophouse/Office

15

2,400/ 7,200

1,277,277

31.12.2010

184

Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

Maklumat Hartanah

Particulars of Properties

No.

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

Usia Bangunan/ Age of Building (tahun/years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 3,439,617

Tarikh Penilaian Semula/ Date of Revaluation

8

No. 24 Jalan USJ 10/1B 47620 UEP Subang Jaya Selangor Darul Ehsan No. 15 & 17 Jalan Kelibang Langkawi Mall 07000 Kuah, Langkawi Kedah Darul Aman

Satu unit Rumah kedai/ Pejabat 3 tingkat One unit of 3 storey Shophouse/Office Dua unit Rumah kedai/ Pejabat 2 tingkat Two units of 2 storey Shophouse/Office

Pegangan Bebas Freehold

16

3,200/ 9,600

31.12.2010

9

Pegangan Bebas Freehold

17

1,440/ 7,720

550,000

31.12.2010

10 No. 26 & 28 Jalan Perda Barat Bukit Mertajam Seberang Prai 14000 Penang 11 No. 433, 434 & 435 Jalan Kulas 93400 Kuching Sarawak 12 No. 312 Jalan Bandar 13 Taman Melawati 53100 Kuala Lumpur 13 No. 20, Fasa 1A Jalan Haji Manan 86000 Kluang Johor Darul Ta'zim 14 No. 64 - D Leboh Bishop 10200 Pulau Pinang

Dua unit Rumah kedai/ Pejabat 3 tingkat Two units of 3 storey Shophouse/Office

Pegangan bebas Freehold

12

3,293/ 8,840

1,000,000

31.12.2010

Tiga unit Rumah kedai/ Pejabat 4 tingkat Three units of 4 storey Shophouse/Office Satu unit Rumah kedai/ Pejabat 4 tingkat One unit of 4 storey Shophouse/Office Satu unit Rumah kedai/ Pejabat 4 tingkat One unit of 4 storey Shophouse/Office Satu unit bangunan Pejabat 6 tingkat (9 level) One unit of 6 storey Officebuilding(9level)

Pegangan Bebas Freehold

15

4,817/ 18,892

4,324,436

31.12.2010

Pegangan Bebas Freehold

16

1,920/ 7,070

1,280,000

31.12.2010

Pajakan 99 tahun 99 years lease

14

2,658/ 9,930

1,750,000

31.12.2010

Pegangan Bebas Freehold

33

3,972/ 19,630

4,000,000

25.06.2010

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185

Maklumat Hartanah

Particulars of Properties

No.

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

Usia Bangunan/ Age of Building (tahun/years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 1,658,318

Tarikh Penilaian Semula/ Date of Revaluation

15 Lot 13 & 14 Lazenda Commercial Centre Jalan Okk Abdullah 87007 Wilayah Persekutuan Labuan 16 Lot 6967, Blok 59 Muara Tuang Jalan Datok Mohd Musa 94300 Kota Samarahan Sarawak

Dua unit bangunan Pejabat 3 tingkat Two units of 3 storey Officebuilding

Pajakan 999 tahun berakhir pada 30.06.2902 999 years lease expiring on 30.06.2902 Pajakan 60 tahun berakhir pada 31.12.2053 60 years lease expiring on 31.12.2053 Pajakan 99 tahun berakhir pada 11.03.2086 99 years lease expiring on 11.03.2086 Pajakan 99 tahun berakhir pada 26.07.2080 99 years lease expiring on 26.07.2080 Pajakan 99 tahun berakhir pada 26.07.2080 99 years lease expiring on 26.07.2080 Pajakan 99 tahun berakhir pada 24.02.2097 99 years lease expiring on 24.02.2097

16

2,504/ 7,200

31.12.2010

Satu unit Rumah kedai/ Pejabat 3 tingkat One unit of 3 storey Shophouse/Office

15

1,312/ 3,750

575,000

31.12.2010

17 Lot 28, 30 & 32 Jalan 2/3A, Pasar Borong 68100 Selayang Selangor Darul Ehsan

Tiga unit Rumah kedai/ Pejabat 4 tingkat Three units of 4 storey Shophouse/Office

23

4,447/ 16,800

2,250,000

31.12.2010

18 Lot 12680 Level 1 & Mezzanine Jalan Bukit Timbalan 80000 Johor Bharu Johor Darul Ta'zim

Dua tingkat bangunan Pejabat 13 tingkat Twofloorsof13storey Officebuilding

12

8,354*

2,540,000

31.12.2010

19 Lot 12680 Level 3 Jalan Bukit Timbalan 80000 Johor Bharu Johor Darul Ta'zim

Satu tingkat bangunan Pejabat 13 tingkat Onefloorof13storey Officebuilding

12

6,594*

1,480,000

31.12.2010

20 Lot 14(S1) & 15(S1) Indah Point, Section 12 Pulau Indah Industrial Park 42000 Klang West Port Selangor Darul Ehsan

Dua unit Rumah kedai/ Pejabat 4 tingkat (kosong) Two units of 4 storey Shophouse/Office (vacant)

11

3,300/ 10,560

800,000

31.12.2010

186

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Maklumat Hartanah

Particulars of Properties

No.

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

Usia Bangunan/ Age of Building (tahun/years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 700,000

Tarikh Penilaian Semula/ Date of Revaluation

21 No. 1 & 2 Jalan Kelicap Taman Pekan Baru 34200 Parit Buntar Perak Darul Ridzuan

Dua unit Rumah kedai/ Pejabat 2 tingkat Two units of 2 storey Shophouse/Office

Pajakan 99 tahun berakhir pada 05.09.2078 99 years lease expiring on 05.09.2078 Pegangan Bebas Freehold

23

3,956/ 7,044

31.12.2010

22 No. 46 & 47, Darul Takaful Jalan Rahmat 83000 Batu Pahat Johor Darul Ta'zim 23 No. 180 & 181 Jalan Tuan Hitam 22000 Jerteh Terengganu Darul Iman 24 Lot 82, 84 & 86 Jalan Rugbi 13/30 Seksyen 13 40100 Shah Alam Selangor Darul Ehsan 25 No. 229, Jalan Shahab 2 Shahab Perdana Jalan Sultanah Sambungan 05350 Alor Star Kedah Darul Aman 26 Lot No. 3803 Jalan Dato' Ulu Muar 72000 Kuala Pilah Negeri Sembilan Darul Khusus 27 No. 45 Jalan Teluk Sisek 25000 Kuantan Pahang Darul Makmur

Dua unit Rumah kedai/ Pejabat 4 tingkat Two units of 4 Storey Shophouse/Office

21

3,220/ 12,092

1,460,000

31.12.2010

Dua unit Rumah kedai/ Pejabat 4 tingkat Two units of 4 storey Shophouse/Office Tiga unit Rumah kedai/ Pejabat 2 tingkat Three units of 2 storey Shophouse/Office

Pegangan Bebas Freehold

20

3,200/ 12,250

1,500,000

31.12.2010

Pajakan 99 tahun berakhir pada 22.01.2102 99 years lease expiring on 22.01.2102 Pegangan Bebas Freehold

11

6,339/ 11,309

2,300,000

31.12.2010

Satu unit Rumah kedai/ Pejabat 2 1/2 tingkat One unit of 2 1/2 storey Shophouse/Office

14

1,400/ 3,570

400,000

31.12.2010

Satu unit Rumah kedai/ Pejabat 3 tingkat One unit of 3 storey Shophouse/Office

Pajakan 99 tahun berakhir pada 06.10.2079 99 years lease expiring on 06.10.2079 Pajakan 99 tahun berakhir pada 18.09.2068 99 years lease expiring on 18.09.2068

11

2,001/ 3,120

400,000

31.12.2010

Satu unit Rumah kedai/ Pejabat 4 tingkat One unit of 4 storey Shophouse/Office

10

3,200/ 8,019

2,000,000

31.12.2010

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Maklumat Hartanah

Particulars of Properties

No.

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

Usia Bangunan/ Age of Building (tahun/years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 1,590,000

Tarikh Penilaian Semula/ Date of Revaluation

28 No. 27, 29 & 31 Pusat Komersil Temerloh 28000 Temerloh Pahang Darul Makmur

Tiga unit Rumah kedai/ Pejabat 2 1/2 tingkat Three units of 2 1/2 storey Shophouse/Office

Pajakan 99 tahun berakhir pada 01.04.2095 99 years lease expiring on 01.04.2095 Pajakan 99 tahun berakhir pada 08.07.2086 99 years lease expiring on 08.07.2086 Pajakan 99 tahun berakhir pada 07.04.2082 99 years lease expiring on 07.04.2082

10

4,195/ 15,050

31.12.2010

29 No. 2 & 4 Jalan 6C/7 43650 Bandar Baru Bangi Selangor Darul Ehsan

Dua unit Rumah kedai/ Pejabat 2 tingkat Two units of 2 storey Shophouse/Office

23

6,383/ 8,032

1,500,000

31.12.2010

30 Lot 14 Arab Malaysian Business Centre Jalan Pasar 70000 Seremban Negeri Sembilan Darul Khusus 31 Tingkat Bawah & Mezzanine Wisma Abrar International Lot 54, Seksyen 8 15350 Kota Bharu Kelantan Darul Naim 32 No. 29, Jalan Delima Pusat Perdagangan Pontian 82000 Pontian Johor Darul Ta'zim

Satu unit Rumah kedai/ Pejabat 6 tingkat One unit of 6 storey Shophouse/Office

14

1,500/ 14,589

3,375,000

31.12.2010

Dua tingkat bangunan Pejabat 8 1/2 tingkat Twofloorsof81/2storey Officebuilding

Pegangan Bebas Freehold

13

7,925*

3,700,000

31.12.2010

Satu unit Rumah kedai/ Pejabat 3 tingkat One unit of 3 storey Shophouse/Office

Pajakan 99 tahun berakhir pada 25.09.2097 99 years lease expiring on 26.09.2097 Pajakan 99 tahun berakhir pada 03.10.2080 99 years lease expiring on 03.10.2080

9

3,899/ 10,248

1,350,000

31.12.2010

33 Lot 11 & 12 Kompleks Seri Temin Jalan Ibrahim 08000 Sungai Petani Kedah Darul Aman

Dua unit Rumah kedai/ Pejabat 4 tingkat Two units of 4 storey Shophouse/Office

25

2,800/ 11,020

1,335,000

31.12.2010

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Maklumat Hartanah

Particulars of Properties

No.

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

Usia Bangunan/ Age of Building (tahun/years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 6,600,000

Tarikh Penilaian Semula/ Date of Revaluation

34 Lot 1129 & 1130 Bangunan Darul Takaful Jalan Sultan Ismail 20100 Kuala Terengganu Terengganu Darul Iman 35 No. 616 & 617 Jalan Besar 73000 Tampin Negeri Sembilan Darul Khusus

Satu unit bangunan Pejabat 12 tingkat One unit of 12 storey Officebuilding

Pajakan kecil 35 tahun berakhir pada 27.02.2037 35 years sub lease expiring on 27.02.2037 Pajakan 99 tahun berakhir pada 05.10.2088 99 year lease expiring on 05.10.2088 Pajakan 99 tahun berakhir pada 08.07.2086 99 year lease expiring on 08.07.2086 Pegangan bebas Freehold

8

3,600/ 23,637

31.12.2010

Dua unit bangunan Pejabat 2 tingkat Two units of 2 storey Officebuilding

18

4,498/ 8,685

950,000

31.12.2010

36 No. 6, Jalan 6C/7 43650 Bandar Baru Bangi Selangor Darul Ehsan

Satu unit Rumah kedai/ Pejabat 2 tingkat One unit of 2 storey Shophouse/Office

23

1,905/ 3,508

650,000

31.12.2010

37 Suite 3B/G Blok 3B, Plaza Sentral Jalan Stesen Sentral 5 50470 Kuala Lumpur 38 No. 26 & 27 Jalan Tanjung Pasar Baru 18500 Machang Kelantan Darul Naim

Satu tingkat bangunan Pejabat 22 tingkat Onefloorof22storey Officebuilding Dua unit bangunan Pejabat 2 tingkat Two units of 2 storey Officebuilding

9

6,409*

7,050,000

31.12.2010

Pajakan 66 tahun berakhir pada 18.02.2069 66 years lease expiring on 18.02.2069 Pajakan 99 tahun berakhir pada 09.12.2069 99 years lease expiring on 09.12.2069

29

1,600/ 4,000

560,000

31.12.2010

39 No. 330 & 331 Jalan Sultan Yahya Petra 15720 Kota Bharu Kelantan Darul Naim

Dua unit bangunan Pejabat 4 1/2 tingkat Two units of 4 1/2 storey Officebuilding

28

3,200/ 15,200

1,700,000

31.12.2010

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189

Maklumat Hartanah

Particulars of Properties

No.

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

Usia Bangunan/ Age of Building (tahun/years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 158,000,291

Tarikh Penilaian Semula/ Date of Revaluation

40 Dataran Kewangan Darul Takaful Jalan Sultan Sulaiman 50000 Kuala Lumpur

Dua unit bangunan Pejabat Blok Utama - 26 tingkat Blok Annex - 29 tingkat Two units of Officebuilding Main Block - 26 storey Annexe Block - 29 storey Satu unit Rumah kedai/ Pejabat 2 tingkat One unit of 2 storey Shophouse/Office

Pegangan Bebas Freehold

Blok Utama/ Main Block - 37 Blok Annex/ Annexe Block - 30

90,427/ 393,508

31.12.2010

41 No. 2408 Taman Samudera 32040 Sri Manjung Perak Darul Ridzuan

Pajakan 99 tahun berakhir pada 19.05.2091 99 years lease expiring on 19.05.2091 Pegangan Bebas Freehold

14

2,800/ 5,300

780,000

31.12.2010

42 No. 76A & 76 Pusat Perniagaan Jalan Tupai 34000 Taiping Perak Darul Ridzuan 43 No. 10 & 11 Jalan Sultan Yahya Petra 15200 Kota Bharu Kelantan Darul Naim

Dua unit bangunan Pejabat 3 tingkat Two units of 3 storey Officebuilding

7

3,134/ 18,304

1,529,990

31.12.2010

Dua unit bangunan Pejabat 3 tingkat Two units of 3 storey Officebuilding

Pajakan 33 tahun berakhir pada 08.09.2037 33 years lease expiring on 08.09.2037 Pegangan Bebas Freehold

8

3,852/ 9,120

1,800,000

31.12.2010

44 No. 4197 Jalan Teluk Wanjah 05200 Alor Star Kedah Darul Aman 45 No. 10 & 8 Jalan Padi Emas 5/2 Bandar Baru UDA 81200 Johor Bharu Johor Darul Ta'zim

Satu unit bangunan Pejabat 4 tingkat One unit of 4 storey Officebuilding Dua unit bangunan Pejabat 3 tingkat Two units of 3 storey Officebuilding

8

8,716/ 18,440

3,600,000

31.12.2010

Pajakan 99 tahun berakhir pada 16.02.2099 99 years lease expiring on 16.02.2099

5

3,080/ 8,024

1,360,000

31.12.2010

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Maklumat Hartanah

Particulars of Properties

No.

Lokasi/ Location

Penerangan Kegunaan/ Description of Existing Use

Hakmilik/ Tenure

Usia Bangunan/ Age of Building (tahun/years)

Keluasan Tanah, Kawasan Bina/ Land, Built-up Area (kaki persegi/ square feet)

Nilai Buku Bersih pada/ Net Book Value as at 31.12.2010 (RM) 665,000

Tarikh Penilaian Semula/ Date of Revaluation

46 No. 4, Kompleks Seri Temin Jalan Ibrahim 08000 Sungai Petani Kedah Darul Aman 47 No. 16, Jalan Cenderawasih Jalan Kilang Lama 09000 Kulim Kedah Darul Aman 48 Lot 1340, Miri Waterfront Commercial Centre 98000 Miri Sarawak 49 No. 6, Jalan Padi Emas 5/2, Bandar Baru UDA 81200 Johor Bharu Johor Darul Ta'zim

Satu unit bangunan Pejabat 4 tingkat One unit of 4 storey Officebuilding

Pajakan 99 tahun berakhir pada 03.10.2080 99 years lease expiring on 03.10.2080 Pegangan Bebas Freehold

25

1,400/ 5,510

31.12.2010

Satu unit bangunan Pejabat 3 tingkat One unit of 3 storey Officebuilding Satu unit bangunan Pejabat 4 tingkat One unit of 4 storeyOfficebuilding Satu unit bangunan Pejabat 3 tingkat One unit of 3 storey Officebuilding

11

1,600/ 4,172

400,000

31.12.2010

Pajakan 60 tahun berakhir 30.09.2052 60 years expiring on30.09.2052 Pajakan 99 tahun berakhir pada 16.02.2099 99 years lease expiring on 16.02.2099 Pajakan 99 tahun berakhir pada 23.04.2102 99 years lease expiring on 23.04.2102 Pajakan 99 tahun berakhir pada 29.06.2092 99 years lease expiring on 29.06.2092

6

1,400/ 5,500

1,100,000

31.12.2010

5

1,540/ 4,012

680,000

31.12.2010

50 No. 148, Kompleks Munshi Abdullah 75200 Melaka

Satu unit bangunan Pejabat 4 ½ tingkat One unit of 4 ½ storey Officebuilding

17

1,470/ 6,117

750,000

31.12.2010

51 No. 16474 & 16475 Pusat Perniagaan Inderapura Jalan Tras Raub Pahang Darul Makmur Jumlah/Total

Dua unit bangunan Pejabat 3 tingkat Two units of 3 storey Officebuilding

11

3,218/ 9,280

1,300,000

31.12.2010

244,369.929

* Kawasan Bina/Build up Area

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191

Statistik Pegangan Saham

Shareholdings Statistics

Modal Saham/Share Capital Modal Dibenarkan Authorised capital : 500,000,000 saham biasa bernilai RM1.00 sesaham 500,000,000 ordinary shares of RM1.00 each

Modal yang diterbitkan dan dibayar sepenuhnya pada 4 Mac 2011 : 162,817,000 saham biasa bernilai RM1.00 sesaham Issued and fully paid-up capital as at 4 March 2011 162,817,000 ordinary shares of RM1.00 each Jumlah pemegang saham pada 4 Mac 2011 No. of shareholders as at 4 March 2011 Kelas saham Class of shares Hak mengundi Voting right : 2,166

: Saham biasa bernilai RM1.00 sesaham Ordinary shares of RM1.00 each : 1 undi bagi setiap saham biasa 1 vote per ordinary share

Pemegang-Pemegang Saham Utama (5% Dan Lebih) Substantial Shareholders' Shareholdings (5% And Above) Nama Pemegang Saham Name of Shareholders BIMB Holdings Berhad Jumlah/Total Jumlah Saham Number of Shares 106,183,675 106,183,675 Peratus (%) Percentage (%) 65.22 65.22

Pegangan Saham Para Pengarah Pada 4 Mac 2011 Directors' Shareholdings as at 4 March 2011 Nama Pengarah Name of Directors Y. Bhg. Dato' Paduka Ismee Ismail Y. Bhg. Dato' Mohamed Hassan Md. Kamil Puan Rozaida Omar Encik Mahadzir Azizan Y. Bhg. Dato' Sulaiman Mohd Yusof Encik Johan Abdullah Encik Zakaria Ismail Jumlah Saham Number of Shares Peratus (%) Percentage (%) -

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Statistik Pegangan Saham

Shareholdings Statistics

Analisa Pegangan Saham Mengikut Saiz Pada 4 Mac 2011 Analysis By Size Of Shareholdings as at 4 March 2011 Saiz Pegangan Saham Size of Shareholdings Bilangan Pemegang Saham Number of Shareholders 150 Peratus (%) Percentage (%) Jumlah Pegangan Saham Number of Shareholdings 2,720 Peratus (%) Percentage (%)

Kurang dari 100 Less than 100 100 - 1,000 1,001 - 10,000 10,001 - 100,000 100,001 sehingga kurang daripada 5% saham diterbitkan 100,001 to less than 5% of issued shares 5% dan lebih saham diterbitkan 5% and above of issued shares Jumlah/Total

6.93

0.00

328 1,328 304 55

15.14 61.31 14.04 2.53

211,581 4,978,199 9,385,100 42,055,725

0.13 3.06 5.76 25.83

1

0.05

106,183,675

65.22

2,166

100.00

162,817,000

100.00

Tiga Puluh (30) Pemegang Saham Terbesar Pada 4 Mac 2011 Thirty (30) Largest Shareholders as at 4 March 2011 Nama Pemegang Saham Name of Shareholders BIMB Holdings Berhad Bimsec Nominees (Asing) Sdn Bhd (Islamic Development Bank) Affin Nominees (Tempatan) Sdn Bhd (AffinFundManagementSdnBhdforMajlis Ugama Islam Dan Adat Resam Melayu Pahang) RHB Nominees (Asing) Sdn Bhd (RUSD Investment Bank Inc.) Lembaga Kemajuan Tanah Persekutuan (FELDA) Jumlah Saham Number of Shares 106,183,675 7,000,000 Peratus (%) Percentage (%) 65.22 4.30

4,602,000

2.83

4,061,500

2.49

2,961,400

1.82

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Statistik Pegangan Saham

Shareholdings Statistics

Tiga Puluh (30) Pemegang Saham Terbesar Pada 4 Mac 2011 Thirty (30) Largest Shareholders as at 4 March 2011 Nama Pemegang Saham Name of Shareholders Majlis Agama Islam Negeri Sembilan Cimsec Nominees (Tempatan) Sdn Bhd (Exempt An for Kenanga Investors Berhad (KUTN(T) S/B)) Kenanga Nominees (Tempatan) Sdn Bhd (PledgedSecuritiesAccountforMajlisAgamaIslam Dan Adat Melayu Terengganu (STC)) Sai Yee @ Sia Say Yee Citigroup Nominees (Tempatan) Sdn Bhd Employees Provident Fund Board Saleem Abdullatif Mustafa Majlis Agama Islam Melaka Cheah See Han Bank Kerjasama Rakyat Malaysia Berhad Mayban Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Liew Kon Sing @ Liew Kong) Mah Yu Lan Lim Khuan Eng Public Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Lee Kin Kheong (E-IMO)) Universiti Sains Malaysia Citigroup Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Cheah See Han (471145)) Meng Hin Holdings Sdn Bhd Philip A/L K.O Kunjappy Jumlah Saham Number of Shares 2,070,900 1,623,100 Peratus (%) Percentage (%) 1.27 1.00

1,554,600

0.95

1,149,000 1,144,220

0.71 0.70

1,000,000 998,250 962,200 687,000 676,900

0.61 0.61 0.59 0.42 0.42

600,000 572,100 547,000

0.37 0.35 0.34

500,000 500,000

0.31 0.31

475,300 467,000

0.29 0.29

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Statistik Pegangan Saham

Shareholdings Statistics

Tiga Puluh (30) Pemegang Saham Terbesar Pada 4 Mac 2011 Thirty (30) Largest Shareholders as at 4 March 2011 Nama Pemegang Saham Name of Shareholders Chua Seng Sam TA Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Vanitha A/P Kaneson) Majlis Agama Islam Dan Adat Melayu Perak Darul Ridzuan Amin Baitulmal Johor Quah Lake Jen T.O. Lim Holdings Sdn Bhd Miss Wipaporn Limprana TA Nominees (Tempatan) Sdn Bhd (Pledged Securities Account for Sellammah A/P Palanisamy) Jumlah/Total Jumlah Saham Number of Shares 457,555 451,900 Peratus (%) Percentage (%) 0.28 0.28

400,000 400,000 378,500 350,000 350,000 343,000

0.25 0.25 0.23 0.21 0.21 0.21

143,467,100

88.12

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Rangkaian Cawangan

Branch Network

HEAD OFFICE

SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K) 26th Floor, Annexe Block Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur P.O. Box 11483, 50746 Kuala Lumpur Tel : 03-2268 1984 Faks : 03-2274 0237 Toll Free : 1-300-8-8252385 Web : http://www.takaful-malaysia.com.my TAKAFUL myCARE CENTRES* DATARAN KEWANGAN DARUL TAKAFUL Tingkat Bawah, Blok Utama Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur SHAH ALAM Tingkat Bawah, Darul Takaful Lot. No 82, 84, 86 Jalan Rugbi 13/30, Seksyen 13 40100 Shah Alam Selangor Darul Ehsan PETALING JAYA No. 10-2 & 12-2, Tingkat 1 Jalan 14/22, The Right Angle 46100 Petaling Jaya Selangor Darul Ehsan KUANTAN No. 45, Tingkat Bawah, Darul Takaful Jalan Teluk Sisek 25000 Kuantan Pahang Darul Makmur BANDAR PERDA No. 28 Jalan Perda Barat 1 Bandar Baru Perda 14000 Bukit Mertajam Pulau Pinang SEREMBAN Darul Takaful, Suite 14-2 Arab Malaysia Business Centre Jalan Tuanku Munawir 70000 Seremban Negeri Sembilan Darul Khusus TAKAFUL RETAIL CENTRE* KL SENTRAL Lot CS/3B/G, Tingkat Bawah Plaza Sentral, Jalan Stesen Sentral 5 50470 Kuala Lumpur TAKAFUL myDESKS* TABUNG HAJI CAWANGAN BAGAN SERAI Bangunan Tabung Haji No. 110, Jalan Besar 34300 Bagan Serai, Perak Tel : 05-721 0320 : 012-505 2009 Fax : 05-721 0323 TABUNG HAJI CAWANGAN KOTA TINGGI Bangunan Tabung Haji No. 24, Jalan Niaga 1 81900 Kota Tinggi, Johor Tel : 07-883 2880 : 012-774 7553 Fax : 05-882 2790 TABUNG HAJI CAWANGAN JALAN TUN RAZAK 2nd Floor, Menara Lembaga Tabung Haji 201, Jalan Tun Razak 50732 Kuala Lumpur Tel : 012-285 2523 : 012-646 3586 Fax : 03-2164 7446 TABUNG HAJI CAWANGAN BUTTERWORTH Bangunan TH, No. 2828-G-1 Jalan Bagan Luar 12000 Butterworth, Penang Tel : 04-323 2892 TABUNG HAJI CAWANGAN TANAH MERAH Tingkat 1, Bangunan TH Lot 211, Jalan Hospital 17500 Tanah Merah, Kelantan Tel : 09-955 7411 Fax : 09-955 7413 TABUNG HAJI CAWANGAN KUALA PILAH Bangunan Tabung Haji Lot No 234 Jalan Dato' Undang Johol 72000 Kuala Pilah Negeri Sembilan Tel : 06-4810971 Fax : 06-4810972

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Rangkaian Cawangan

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BRANCHES* WILAYAH PERSEKUTUAN PUTRAJAYA Tingkat 1, Blok E 16 Parcel E, Precint 1 Anjung 62000 Putrajaya, Wilayah Persekutuan Tel : 03-8889 5261 Fax : 03-8889 5262 SELANGOR DARUL EHSAN KAJANG No. 5A, Plaza Kajang Jalan Dato' P.Algendra 1 43000 Kajang, Selangor Darul Ehsan Tel : 03-8734 6479 : 03-8737 6591 Fax : 03-8734 6480 JOHOR DARUL TAKZIM JOHOR BAHRU No. 8, Aras 3 Menara Presind, Jalan Bukit Timbalan 80000 Johor Bahru, Johor Darul Takzim Tel : 07-224 0369 : 07-224 5426 : 07-226 4645 Fax : 07-224 2089 MUAR No. 5-4, Tingkat Bawah, Jalan Ibrahim 84000 Muar, Johor Darul Takzim Tel : 06-952 8808 : 06-952 2102 : 06-955 6206 Fax : 06-953 1609 BATU PAHAT Tingkat 2, No. 46 & 47 Darul Takaful, Jalan Rahmat 83000 Batu Pahat, Johor Darul Takzim Tel : 07-434 8560 : 07-432 5673 Fax : 07-433 2729 KLUANG 20, Tingkat 2, Darul Takaful Jalan Haji Manan 86000 Kluang Johor Darul Takzim Tel : 07-774 1053 : 07-772 1757 Fax : 07-776 8285

KEDAH DARUL AMAN ALOR STAR Darul Takaful, No. 229, Jalan Shahab 2 Shahab Perdana Jalan Sultanah Sambungan 05150 Alor Setar, Kedah Darul Aman Tel : 04-733 4722 : 04-730 7472 : 04-731 9933 Fax : 04-730 2414 SUNGAI PETANI Darul Takaful No. 4, Kompleks Seri Temin, Jalan Ibrahim 08000 Sungai Petani, Kedah Darul Aman Tel : 04-421 4510 : 04-425 6588 Fax : 04-425 7588 KULIM Darul Takaful No. 16, Taman Cenderawasih Jalan Tuanku Putra 09000 Kulim, Kedah Darul Aman Tel : 04-490 6306 : 04-495 0615 Fax : 04-491 1241 LANGKAWI No. 15, Tingkat 1, Darul Takaful Jalan Kelibang, Langkawi Mall 07000 Kuah, Kedah Darul Aman Tel : 04-966 6242 : 04-966 0052 Fax : 04-966 6394 KELANTAN DARUL NAIM KOTA BHARU Lot. 331 & 332 Tingkat Bawah, Darul Takaful Jalan Sultan Yahya Petra, Wakaf Siku 15200 Kota Bharu, Kelantan Darul Naim Tel : 09-744 7277 : 09-744 1408 : 09-747 8700 : 09-743 9362 Fax : 09-748 6864

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MACHANG Lot. 27, Tingkat 1 Jalan Tanjung 18500 Machang, Kelantan Darul Naim Tel : 09-975 1789 : 09-975 8553 Fax : 09-975 7626 MELAKA MELAKA 148 Kompleks Munshi Abdullah Jalan Munshi Abdullah 75100, Melaka Tel : 06-288 3054 : 06-281 4985 : 06-284 9633 Fax : 06-288 1341 MASJID TANAH SU 953, Jalan Bandar Baru 6 Taman Bandar Baru 78300 Masjid Tanah, Melaka Tel : 06-384 7233 Fax : 06-384 8533 PAHANG DARUL MAKMUR TEMERLOH No. 27, Jalan Dato' Bahaman 3 Darul Takaful, Pusat Dagangan Temerloh 28000 Temerloh, Pahang Darul Makmur Tel : 09-296 5560 : 09-296 2595 Fax : 09-296 5417 PERAK DARUL RIDZUAN IPOH No. 23A, Medan Istana 3 Bandar Ipoh Raya 30000 Ipoh, Perak Darul Ridzuan Tel : 05-255 3888 : 05-242 1824 : 04-243 5201 Fax : 05-255 1462 BANDAR BARU SRI MANJUNG No. 2406, Taman Samudera 32040 Sri Manjung, Perak Darul Ridzuan Tel : 05-688 1186 : 05-688 6211 Fax : 05-688 7211 TAIPING No. 76, Tingkat 1 & 2 Darul Takaful, Pusat Perniagaan Taiping Jalan Tupai, 34000 Taiping Perak Darul Ridzuan Tel : 05-807 9876 : 05-807 6588 : 05-804 1782 Fax : 05-808 7588 TELOK INTAN Lot. 51-1, Jalan Intan 2, Bandar Baru 36000 Telok Intan, Perak Darul Ridzuan Tel : 05-622 7790 : 05-622 6202 Fax : 05-622 9311 PULAU PINANG KEPALA BATAS No. 2148,Tingkat Bawah & 1, Jalan Bertam 13200 Kepala Batas, Seberang Perai Utara Pulau Pinang Tel : 04-574 1594 : 04-575 9278 Fax : 04-574 1596 GELUGOR No. 2480, Tingkat Bawah Jalan Sultan Azlan Shah 11700 Gelugor, Pulau Pinang Tel : 04-658 8240 Fax : 04-658 8243 TERENGGANU DARUL IMAN KUALA TERENGGANU Lot 1129 & 1130, Tingkat 2 & 3 Darul Takaful, Jalan Sultan Ismail Off Jalan Banggol 20100 Kuala Terengganu Terengganu Darul Iman Tel : 09-623 3211 : 09-624 9486 : 09-622 3211 Fax : 09-623 9098 KEMAMAN Lot. 2.07 & 2.08, Tingkat 2 Wisma Serangkai, Jalan Sulaimani, Chukai 24000 Kemaman, Terengganu Darul Iman Tel : 09-859 4796 : 09-858 6878 Fax : 09-858 3455

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Syarikat Takaful Malaysia Berhad (131646-K) · Laporan Tahunan 2010 Annual Report

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SABAH KOTA KINABALU Lot A 202 & 203, Tingkat 2, Blok A Wisma Muis, Jalan Tengku Abdul Rahman Peti Surat 16402, 88850 Kota Kinabalu, Sabah Tel : 088-240 212 : 088-240 312 Fax : 088-240 313 TAWAU Lot 268, Blok 28, Tingkat 2 Jalan Mahkamah, Fajar Kompleks 91000 Tawau, Sabah Tel : 089-776 510 : 088-770 960 Fax : 089-756 697 SARAWAK KUCHING Lot. 435, Tingkat 1 & 2 Darul Takaful, Bangunan Tuanku Haji Mohammad Al-Edrus, Jalan Kulas 93400 Kuching, Sarawak Tel : 082-242 725 : 082-235 121 : 082-247 904 : 082-252 045 Fax : 082-234 191 MIRI Darul Takaful, Lot. 1340,Tingkat Bawah & 1 Miri Waterfront Commercial Centre Jalan Waterfront, 98000 Miri, Sarawak Tel : 085-425 961 : 085-420 651 Fax : 085-411 724 SIBU No. 10H, Lot. 1735 Tingkat 1, Bangunan Koperasi Seduan Jalan Kampong Datuk 96000 Sibu, Sarawak Tel : 084-348 346 Fax : 084-325 276 * For further details, please contact our: Toll-free number 1300-8-TAKAFUL (825 2385) or Email at [email protected]

SYARIKAT-SYARIKAT SUBSIDIARI ASEAN RETAKAFUL INTERNATIONAL (L) LTD. (LL01129) Level 14, Blok 4 Financial Park Complex Jalan Merdeka 87000 Wilayah Persekutuan Labuan Tel : 087-451 301 : 087-451 302 : 087-451 303 Fax : 087-451 300 PT SYARIKAT TAKAFUL INDONESIA Graha A, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta 12790 Indonesia Tel : 6221-799 1234 : 6221-799 2345 Fax : 6221-7919 8877 PT ASURANSI TAKAFUL KELUARGA Graha B, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta 12790 Indonesia Tel : 6221-799 1234 : 6221-799 2345 Fax : 6221-790 1435 PT ASURANSI TAKAFUL UMUM Graha A, Graha Takaful Indonesia Jalan Mampang Prapatan Raya No. 100, Jakarta 12790 Indonesia Tel : 6221-799 1234 : 6221-799 2345 Fax : 6221-790 1944

Borang Proksi/Proxy Form

25th Annual General Meeting

Saya / Kami / I / We .................................................................................................................................................................................................................................................. sebagai Ahli / Ahli - Ahli Syarikat yang dinyatakan di atas dengan ini melantik being a Member / Members of the abovenamed Company, hereby appoint .............................................................................................................................................................................................................................................. dari / of ............................................................................................................................................................................................................................... atau / Pengerusi Mesyuarat jika beliau tidak dapat hadir / or the Chairman of the Meeting failing him ....................................................................................... dari / of ............................................................................................................................................................................................................................... sebagai proksi saya / kami untuk mengundi bagi pihak saya / kami di MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD yang KEDUA PULUH LIMA yang akan diadakan pada hari Khamis, 5 Mei 2011 jam 9:30 pagi dan pada sebarang penangguhannya. as my / our proxy to vote for me / us on my / our behalf at the TWENTY FIFTH ANNUAL GENERAL MEETING OF SYARIKAT TAKAFUL MALAYSIA BERHAD, to be held on Thursday, 5 May 2011 at 9:30 a.m. and at any adjournment thereof. Sila tandakan "X" di dalam ruang yang disediakan di bawah bagaimana anda ingin mengundi untuk resolusi-resolusi berikut. Sekiranya tiada arahanarahan tertentu, proksi anda akan mengundi atau tidak mengundi sepertimana yang dia anggap patut. Jika anda melantik dua proksi, sila nyatakan bahagian pegangan untuk diwakilkan kepada setiap proksi. Please indicate an "X" in the space provided below, how you wish your vote to be cast in respect of the following resolutions. In the absence of specific directions, your proxy may vote or abstain at his/her discretion. If you appoint two proxies, please specify the proportions of holdings to be represented by each proxy. Wakil saya / kami akan mengundi seperti berikut / My / Our proxy is to vote as indicated hereunder: NO. RESOLUSI / RESOLUTION 1 Menerima Penyata-Penyata Kewangan yang telah diaudit bagi lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010, beserta laporan Pengarah dan Juruaudit berkaitan dengannya. ToreceivetheAuditedFinancialStatementsforeighteen(18)monthsfinancialperiodended31December2010, together with the reports of the Directors and Auditors thereon. Untuk meluluskan dividen akhir sebanyak 7% ditolak 25% cukai bagi lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010. Toapproveafinaldividendof7%less25%taxinrespectoftheeighteen(18)monthsfinancialperiodended 31 December 2010. Melantik semula Pengarah-pengarah berikut yang bersara menurut Tataurusan Persatuan Syarikat:To re-elect the following Directors, each of whom retires pursuant to the Company's Articles of Association: 3 4 Artikel 62/Article 62 Encik Mahadzir Azizan Y. Bhg. Dato' Sulaiman Mohd Yusof Artikel 66A/Article 66A Y. Bhg. Dato' Paduka Ismee Ismail Encik Zakaria Ismail Untuk meluluskan bayaran yuran Pengarah-pengarah sebanyak RM721,000 bagi lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010. ToapprovethepaymentoftheDirectors'feesofRM721,000foreighteen(18)monthsfinancialperiodended 31 December 2010. Untuk meluluskan bayaran yuran Ahli-Ahli Badan Penasihat Syariah sebanyak RM153,000 bagi lapan belas (18) bulan tempoh kewangan berakhir 31 Disember 2010. To approve the payment of Shariah Advisory Body Members' fees of RM153,000 for eighteen (18) months} financialperiodended31December2010. Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-Pengarah untuk menetapkan bayaran Juruaudit. To re-appoint Messrs KPMG Desa Megat & Co. as the Auditors of the Company and to authorise the Directors tofixtheirremuneration. MENYOKONG/ FOR MENENTANG/ AGAINST

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JUMLAH SAHAM NO. OF SHARES Pada / Dated this ........ haribulan / day of ...... 2011 Tandatangan/ Cop Mohor Pemegang Saham Signature/ Common Seal of Shareholders

Nota-Nota: (i) Seorang ahli Syarikat yang berhak hadir dan mengundi dalam mesyuarat, berhak melantik seorang atau beberapa orang proksi untuk hadir dan mengundi bagi pihaknya dan haruslah menyatakan bahagian pegangan sahamnya yang diwakili oleh setiap proksi dan seorang proksi tidak semestinya ahli Syarikat. (ii) Suratcara pelantikan proksi mestilah dibuat secara bertulis dan ditandatangani oleh pihak yang melantik atau wakilnya yang diberi kuasa secara bertulis atau jika pihak yang melantik itu sebuah perbadanan, ianya hendaklah dibuat samada di bawah meteri atau ditandatangani oleh pegawai atau wakil yang diberi kuasa. (iii) Semua borang proksi hendaklah dihantar kepada Pejabat Berdaftar Syarikat, di Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No.4 Jalan Sultan Sulaiman, 50000 Kuala Lumpur tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya. (iv) Kecuali arahan mengundi dinyatakan dalam ruang yang disediakan di atas, seorang proksi boleh mengundi sebagaimana yang ia fikirkan sesuai. Notes: (i) A member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend and vote instead of him and shall specify the proportions of his holdings to be represented by each proxy and a proxy need not be a member of the Company. (ii) The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a corporation,eitherundersealorunderthehandofanofficerorattorneydulyauthorised. (iii) AllproxyformsshouldbedepositedattheRegisteredOfficeoftheCompanyatTingkat26,BlokAnnex,DataranKewanganDarulTakaful,No.4,Jalan SultanSulaiman,50000KualaLumpurnotlessthanforty-eight(48)hoursbeforethetimeforholdingthemeetingoranyadjournmentthereof. (iv) Unlessvotinginstructionsareindicatedinthespacesprovidedabove,theproxymayvoteashe/shethinks.

Setiausaha Syarikat / The Company Secretary SYARIKAT TAKAFUL MALAYSIA BERHAD Tingkat 26, Blok Annex Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur

Borang Proksi/Proxy Form

26th Annual General Meeting

Saya / Kami / I / We .................................................................................................................................................................................................................................................. sebagai Ahli / Ahli - Ahli Syarikat yang dinyatakan di atas dengan ini melantik being a Member / Members of the abovenamed Company, hereby appoint .............................................................................................................................................................................................................................................. dari / of ............................................................................................................................................................................................................................... atau / Pengerusi Mesyuarat jika beliau tidak dapat hadir / or the Chairman of the Meeting failing him ....................................................................................... dari / of ............................................................................................................................................................................................................................... sebagai proksi saya / kami untuk mengundi bagi pihak saya / kami di MESYUARAT AGUNG TAHUNAN SYARIKAT TAKAFUL MALAYSIA BERHAD yang KEDUA PULUH ENAM yang akan diadakan pada hari Khamis, 5 Mei 2011 dengan serta merta selepas berakhirnya atau penangguhan (mengikut yang mana berkaitan) Mesyuarat Agung Tahunan ke 25 yang akan diadakan pada jam 9:30 pagi pada hari dan pada tempat yang sama. as my / our proxy to vote for me / us on my / our behalf at the TWENTY SIXTH ANNUAL GENERAL MEETING OF SYARIKAT TAKAFUL MALAYSIA BERHAD, to be held on Thursday, 5 May 2011 immediately following the conclusion or adjournment (as the case may be) of the 25th Annual General Meeting which will be held at 9:30 a.m. on the same day and at the same venue. Sila tandakan "X" di dalam ruang yang disediakan di bawah bagaimana anda ingin mengundi untuk resolusi-resolusi berikut. Sekiranya tiada arahanarahan tertentu, proksi anda akan mengundi atau tidak mengundi sepertimana yang dia anggap patut. Jika anda melantik dua proksi, sila nyatakan bahagian pegangan untuk diwakilkan kepada setiap proksi. Please indicate an "X" in the space provided below, how you wish your vote to be cast in respect of the following resolutions. In the absence of specific directions, your proxy may vote or abstain at his/her discretion. If you appoint two proxies, please specify the proportions of holdings to be represented by each proxy. Wakil saya / kami akan mengundi seperti berikut / My / Our proxy is to vote as indicated hereunder: NO. RESOLUSI / RESOLUTION Untuk melantik semula Pengarah-pengarah berikut yang bersara menurut Artikel 62 Tataurusan Persatuan Syarikat: To re-elect the following Directors, each of whom retires pursuant to Article 62 of the Company's Articles of Association: 1 2 3 Encik Johan Abdullah Y. Bhg. Dato' Mohamed Hassan Md Kamil Untuk melantik semula Tetuan KPMG Desa Megat & Co. sebagai Juruaudit Syarikat dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran Juruaudit. To re-appoint Messrs KPMG Desa Megat & Co. as the Auditors of the Company and to authorise the Directorstofixtheirremuneration. Cadangan Mandat Pemegang Saham bagi Urusniaga Berulang Pihak Berkaitan. Proposed Shareholders' Mandate for Recurrent Related Party Transactions. JUMLAH SAHAM NO. OF SHARES Pada / Dated this ........ haribulan / day of ...... 2011 MENYOKONG/ FOR MENENTANG/ AGAINST

4

Tandatangan/ Cop Mohor Pemegang Saham Signature/ Common Seal of Shareholders

Nota-Nota: (i) Seorang ahli Syarikat yang berhak hadir dan mengundi dalam mesyuarat, berhak melantik seorang atau beberapa orang proksi untuk hadir dan mengundi bagi pihaknya dan haruslah menyatakan bahagian pegangan sahamnya yang diwakili oleh setiap proksi dan seorang proksi tidak semestinya ahli Syarikat. (ii) Suratcara pelantikan proksi mestilah dibuat secara bertulis dan ditandatangani oleh pihak yang melantik atau wakilnya yang diberi kuasa secara bertulis atau jika pihak yang melantik itu sebuah perbadanan, ianya hendaklah dibuat samada di bawah meteri atau ditandatangani oleh pegawai atau wakil yang diberi kuasa. (iii) Semua borang proksi hendaklah dihantar kepada Pejabat Berdaftar Syarikat, di Tingkat 26, Blok Annex, Dataran Kewangan Darul Takaful, No.4 Jalan Sultan Sulaiman, 50000 Kuala Lumpur tidak lewat dari empat puluh lapan (48) jam sebelum waktu yang ditetapkan bagi mengadakan mesyuarat atau sebarang penangguhannya. (iv) Kecuali arahan mengundi dinyatakan dalam ruang yang disediakan di atas, seorang proksi boleh mengundi sebagaimana yang ia fikirkan sesuai. Notes: (i) A member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend and vote instead of him and shall specify the proportions of his holdings to be represented by each proxy and a proxy need not be a member of the Company. (ii) The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a corporation,eitherundersealorunderthehandofanofficerorattorneydulyauthorised. (iii) AllproxyformsshouldbedepositedattheRegisteredOfficeoftheCompanyatTingkat26,BlokAnnex,DataranKewanganDarulTakaful,No.4,Jalan SultanSulaiman,50000KualaLumpurnotlessthanforty-eight(48)hoursbeforethetimeforholdingthemeetingoranyadjournmentthereof. (iv) Unlessvotinginstructionsareindicatedinthespacesprovidedabove,theproxymayvoteashe/shethinks.

Setiausaha Syarikat / The Company Secretary SYARIKAT TAKAFUL MALAYSIA BERHAD Tingkat 26, Blok Annex Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur

www.takaful-malaysia.com.my

SYARIKAT TAKAFUL MALAYSIA BERHAD (131646-K) Tingkat 26, Blok Annex Dataran Kewangan Darul Takaful No. 4, Jalan Sultan Sulaiman 50000 Kuala Lumpur Tel : 1300-8-TAKAFUL (8252385) Faks : 603-2274 0237

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