Annual Report 2018 IIUM HOLDINGS

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Annual Report
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Annual Report 2018
Annual Report 2018
2 IIUM Holdings Sdn Bhd
Table of
contents
Core Values, Vision & Mission 3
Corporate Information, Board Committees and Management Team 4
Corporate Structure 5
5 Years Financial Highlights 6
Statement from the Board 7 - 12
Group CEO’s Review 13 - 20
Board of Directors 21 - 23
Director’s Profile 24 - 29
Corporate Report 31 - 49
Photo Gallery 50 - 51
Financial Statements 53 - 110
Corporate Directory 112 - 115
Annual Report 2018
IIUM Holdings Sdn Bhd 3
Core Values
1
COURAGE
2
DISCIPLINE
3
TRUSTWORTHY
4
LOYALTY
5
DILIGENCE
Vision Mission
• W
e pledge to offer excellent services and value to our
To be the leading University-
customers within our strategic resources and expert areas.
Based Company Internationally While venturing into hi-tech areas, we continue to uphold
our Core Values and business ethics.
• A
s the business arm of the University, we are committed
to promote and commercialize our expertise and products.
While doing this, we will simultaneously inject and
inculcate the culture of entrepreneurship in the community.
• In aiming for profitable returns to the Company, we also
strive to meet our financial obligations to the University
while at the same time, being attentive to our employee’s
welfare and development.
Annual Report 2018
Corporate BoarD
Information Committees
Chairman AUDIT & RISK COMMITTEE
Tan Sri Dato’ Seri Utama Dr. Rais Yatim • Dato’ Rosini binti Abd Samad
(until 1st August 2018) - Chairperson
• Prof. Dr. Nik Nazli binti Nik Ahmad
Deputy Chairman - Member
• Assoc. Prof. Dr. Noraini binti Mohd Ariffin
Tan Sri Dato’ Sri Dr. Abdul Aziz bin Abdul Rahman
- Member
Board of Directors NOMINATION & REMUNERATION COMMITTEE

Prof. Emeritus Tan Sri Dzulkifli bin Abdul Razak
• Tan Sri Dato’ Sri Dr. Abdul Aziz bin Abdul Rahman
Dato’ Ahmad Zailan bin Ashaari @ Shaari
- Chairman
Dato’ Rosini binti Abd Samad
• Dato’ Rosini binti Abd Samad
Dato’ Jamaludin bin Hassan
- Member
Datuk Ir. Khalilur Rahman bin Ebrahim
• Datuk Ir. Khalilur Rahman bin Ebrahim
- Member
Registered Office
Level 3, Muhammad Abdul-Rauf Building REMEDIAL, GRIEVANCES & DISCIPLINARY
International Islamic University Malaysia
Jalan Gombak, 53100 Kuala Lumpur COMMITTEE
No. Tel : +(6)03 - 6421 4331 / 5443 • Dato’ Jamaludin bin Hassan
No. Fax : +(6)03 - 6421 4332 - Chairman
• Dato’ Rosini binti Abd Samad
Principal Banker - Member
Bank Islam (Malaysia) Berhad
GROUP Company Secretary

Inong Putri binti Abdullah
Management
LS 0006938
Practicing Certificate No. 201908000174
Auditor
Team
Messrs. Idris Ibrahim & Co. (AF1047) Group Chief Executive Officer
• Dato’ Naharudin bin Ali
Group General Manager

• Alias bin Abdul Majid
Group Internal Auditor

• Naaimah binti Ahmad Radzi
Group Company Secretary

• Inong Putri binti Abdullah
Group Legal Advisor

• Nik Haizam binti Nik Jaafar
(until 31st March 2019)
Annual Report 2018
Corporate
Structure
EDUCATION CONSULTANCIES HEALTHCARE & OTHERS

SECTOR & SERVICES SECTOR
• IIUM Centre for Continuing • IIUM Entrepreneurship & • IIUM Medical Specialist Centre
Education Sdn Bhd Consultancies Sdn Bhd Sdn Bhd
• IIUM Higher Education Sdn • IIUM Advanced Technologies • IKOP Sdn Bhd
Bhd Sdn Bhd
• IIUM Properties Sdn Bhd
• IIUM Schools Sdn Bhd • IIUM Corporate Management
• Daya Bersih Sdn Bhd
Sdn Bhd
• IIUM Educare Sdn Bhd
• IIUM Shariah Advisory Services
Sdn Bhd
Annual Report 2018
5 Years Financial
Highlights
2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
Actual Actual Actual Actual Audited
Actual Actual Actual Actual Actual
Turnover (RM’000) 117,949 131,265 135,050 142,297 141,871

Operating Profit (RM’000) 13,090 12,297 6,004 10,494 9,985
Profit Before Tax (RM’000) 11,712 11,094 5,100 7,028 5,266
Net Profit (RM’000) 5,527 7,467 1,277 1,881 3,251
Total Shareholder Fund (RM’000) 20,002 27,468 28,746 30,626 33,877
No. of Shares Issued (‘000) 5,000 5,000 5,000 5,000 5,000
Earnings Per Share (RM) 1.11 1.49 0.26 0.38 0.65
Net Tangible Assets per share (RM) 4.00 5.49 5.75 6.13 6.78
Turnover Profit Before Tax

RM’Million RM’Million
142.3 141.9 11.7

11.1
135.0
131.3
7.0
5.3
5.1
117.9
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Net Profit Total Shareholders Funds

RM’Million RM’Million
7.5 33.9
28.7 30.6
27.5
5.5
20.0
3.3
1.9
1.3
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Annual Report 2018
Statement From The Board
Cultivating
the seeds
Annual Report 2018
Statement From
The Board
O n behalf of the Board of Directors, I am

pleased to present the Annual Report and
Audited Financial Statements of IIUM Holdings
doubling of turnover for IIUM Medical Specialist
Centre Sdn Bhd (iMSC), and IKOP Sdn Bhd
(IKOP) which is now supplying its iGesic ointment
Group for the year ended 31st December 2018. to government hospitals and clinics through
Pharmaniaga Logistics Sdn Bhd.
Economic Landscape The Education business too suffered a dip in 2018
Amidst the historical change in the country’s as most subsidiaries recorded lower turnover,
leadership, the Malaysian economy still managed operating under tough market conditions. The
to record a growth of 4.7% in 2018. Despite the continuing education business is at a conundrum
abolishment of GST, Government coffers continue with the imposition of a freeze of new student
to improve with higher world oil prices. The intakes, as IIUM restructure its undergraduate
overall improvement in the economy was bolstered and post graduate programs for working
by improvements in commodity related sectors as adults. The International Islamic College has
well as private sector spending, including the seen improvements to the number of students’
services, manufacturing and construction sectors. enrolment but has yet to see significant increase
in its turnover and profitability. The international
The Group’s overall performance was initially school too suffered a dip in its business as a result
affected by the change in government, with of reduction in number of sponsored students by
some consultancy projects that were already IIUM as well as government scholarship programs
secured, were subsequently cancelled or deferred. for the A-levels. The only bright spot is the
Operating in a challenging year and under tough improvement in preschool and childcare services
market conditions, the Group remains steadfast with IIUM Educare Sdn Bhd establishing its mark
and, by the grace of Allah SWT, was able to and dominance in providing childcare services
record another profitable year. to government agencies and government-linked
companies. In addition to MIDA, TM and TNB,
its client base now includes Malaysia Airport
Performance Highlights Holdings Berhad and Prasarana Berhad.
For the year under review, the Group managed
At the Profit Before Tax (PBT), the Group recorded
to achieve the same level of turnover as in
a lower figure of RM5.6 million as compared
previous year. The turnover of RM142 million was
to RM7.0 million for 2017. The sudden and
achieved despite substantial reductions in facility
substantial reduction in FMS scope of works by
management services (FMS) scope of services by
IIUM resulted in much lower profits for the FMS
the International Islamic University Malaysia (IIUM).
business. The implementation of the New Salary
The Group consider this as a temporary setback
Scheme in January 2018 increased the operating
and a blessing in disguise as Daya Bersih Sdn
cost slightly but the Group is viewing this as a
Bhd (DBSB), which manages the FMS business,
long-term strategy to remain competitive in the
is now no longer complacent and is now ready
labour market, and to drive its business beyond
to challenge the big players in the open market
the RM200 million mark.
for FMS business. The Group’s earlier strategy
of focusing on healthcare is bearing fruits with
Annual Report 2018
Year 2018 was

a challenging
year but the
Group remain
steadfast to
record another
profitable year.
Tan Sri Dato’ Sri Dr.

Abdul Aziz
Abdul Rahman
Deputy Chairman
Annual Report 2018
Statement From
The Board
Board of Directors and Top Management of IIUM Holdings Group Companies
Human Capital Community Outreach

Our employees are always We reinforced our economic,
considered as our number one environmental and social
20.o
asset and we will continue to responsibilities in 2018
great lengths to cultivate a through on-going programmes
Sen strong pool of talent to drive and initiatives. The annual
DIVIDEND the business forward. The contribution of RM500,000 to
FOR THE YEAR implementation of the New the Office of the IIUM President
Salary Scheme is testament has helped the University to
to our commitment to ensure carry out many community
that our employees are well outreach programmes to IIUM
taken care of, and rewarded students and its surrounding
The Board is particularly pleased accordingly. community.
with the improved earnings for
the year, and as reward to our The Group is also conscientious
shareholder, has recommended on the need to improve
a dividend of 20 sen per share skillset of its more than 2,000
which will be paid in 2019. The employees. Employees are
rate of dividend was derived at constantly provided access to
after having considered other training and skill improvements.
cash and non-cash contributions These included soft skills and
made by the Group to IIUM, technical skills training, coupled
including the annual allocation with leadership and management
of R M500,000 to the I I U M competency programmes.
President CSR Fund, which is
now being channeled to the Additionally, to strengthen
IIUM Rector’s Trust Fund. The employee engagement and
Board has also considered improve productivity, several TOTAL OF
the need for further growth of
subsidiary operations which
has been financed without any
Group recreational activities have
been carried out for effective
bonding and camaraderie within
RM 500,000
annual contribution to the
injection of capital from its the Group. These include Office of the IIUM President
shareholder. sports and fitness as well as fun
activities to boost staff morale,
health and general well-being.
Annual Report 2018
Statement From
The Board
The Group is also committed
to the United Nation’s initiative
on Sustainable Development
Goals. To this, the Group has
established a recycling centre
in Gombak, as well as investing
in bio-digestors to convert food
waste to organic fertilisers at
both Kuantan and Gombak
campuses.
Contributions to free food

programs as well as activities of
the Sultan Haji Ahmad Shah’s
mosques especially for iftar and
distribution of “bubur lambuk” economy, the Group will be further investments in working
during the holy month of consolidating its business to capital, as well as additional
Ramadhan Al-Mubarak as well achieve strategic growth and machinery and equipment, to
as qurban activities during Eidul sust ainability. The Group increase capacity and cope with
Adha celebrations will remain. however is well positioned in the growing demand.
the healthcare with a much
higher allocation of RM29 billion Having forced out of the comfort
Outlook to the Ministry of Health in the zone, D B S B is now more
Tightening of financial conditions 2019 National Budget, of which confident of offering its FMS
by the US Federal Reserves will RM10.8 billion is earmarked business solution to the external
see further weakening of the for medicines and upgrading market. We have already
Ringgit against the Greenback. of services at hospitals and submitted tenders for several
With a waning momentum in clinics. Following the success packages of J KR buildings
the world economy and the of supplying its iGesic ointment in Putrajaya and the success
slower growth in the Malaysian under the Government Approved of securing some of these
Product Purchase List (APPL), packages will see external FMS
IKOP will continue to register business exceeding the RM10.0
more products under APPL, to million mark. We have also
double its turnover. This include made our presence felt among
hand sanitisers and paracetamol multinational manufacturers
(PCM) suspension for 2019. with our “green” and shariah-
There will be pressure for compliant solution with the
securing of BASF as our clients
and more are expected in 2019.
In order to keep pace with

the fast-changing world of ICT
technologies, the Group will be
offering blockchain technologies
and IR 4.0 as its product range
to its clients. We have already
been mandated by the Ministry
of Education to spearhead
use of blockchain in validation
Annual Report 2018
Statement From
The Board
and verification of examination respectively. Their leadership Last but not least, our heartful
scrolls. The Group has also and guidance over the many thanks to all other stakeholders,
ventured overseas to offer smart years have played a major role in our customers, the authorities,
manufacturing and smart farming driving the growth and success bankers and financiers,
solutions to improve efficiency. of IIUM Holdings Group and clients, business partners and
we wish them all the best in associates who have all played
In aligning our economic growth their future endeavours. an instrumental part in our
with that of the University, we overall success. I look forward
are looking at Green technology In addition, we would also like to their continued efforts as we
and energy production using to thank Prof. Dato’ Sri Dr. embark on a new chapter and
Photovoltaic solar panels. Ashgar Ali Bin Ali Mohamed venture into the new year with a
who has left the Board. We are mission to achieve even greater
sincerely grateful for his years heights than ever before.
Acknowledgement and of dedication and significant
contributions to the Group and
Appreciation we also wish him the best in his
In a year marked by significant future undertakings.
changes, IIUM Holdings Group
has again persevered to deliver Our continued success has
consistent performance to its truly been the collective
turnover and profitability. The efforts of many parties and in
achievement thus far is no particular to the management
small part to our invaluable team and employees, forming Tan Sri Dato’ Sri Dr. Abdul
Board members who have been the backbone of the Group. Aziz Abdul Rahman
consistent and supportive in Their continued dedication and Deputy Chairman
guiding the Group. commitment truly deserve an all-
round applause from the Board.
On behalf of the Group, I would
like to express our utmost To o u r s h a r e h o l d e r, t h e
appreciation to our previous International Islamic University
Chairman, YBhg Tan Sri Dato’ Malaysia, the Board is truly
Seri Utama Dr. Rais Yatim, and grateful for the immense support
our previous Board member, given throughout the years and
Prof. Dato’ Sri Dr. Zaleha we are committed to reciprocate
Kamarudin who have both by improving our earnings
retired from their positions as potentials and increasing their
President and Rector of IIUM shareholder’s value.
Annual Report 2018
Group CEO’s Review
nurturing the
Potential
Annual Report 2018
Group CEO’s
Review
“The Group
strives to
increase
value creation
further and
reward its
shareholder”
Dato’ Haji
Naharudin Ali
Group Chief Executive Officer
T he year 2018 was without doubt, a challenging year, both for the country, as well as for the Group.
The Group was impacted negatively by the change in government with some consultancy projects
that were secured being cancelled or deferred. Nevertheless, the strong fundamentals of the Group’s
operations enabled it to achieve another noteworthy performance.
Budget cuts by the International Islamic University Malaysia (IIUM) is still in play and our facility
management services (FMS) business suffered a drop in both turnover and profits. The Group however
managed to retain its overall business volume by powering up on its focus on healthcare business. Both
healthcare subsidiaries however are still in infancy, and yet to be able to contribute to the bottom line
of the Group. As such profits before tax was much lower than in previous year but earnings improved
with the changes and enhancements made in the business processes to reduce tax liabilities.
Financial Highlights
Operating under very challenging circumstances, the Group managed to achieve similar turnover of
RM142 million as in 2017. This was despite the substantial reduction is scope of FMS by IIUM and
drop in education business overall, following from the reduction in number of Government sponsored
students for the “A-levels” programs as well as child education benefit of IIUM expatriate staff at
International Islamic School Malaysia (IISM).
Annual Report 2018
Group CEO’s
Review
The Group suffered a drop in its
profit before tax, achieving only
RM5.3 million against RM7.0
Turnover
RM’Million
142.3 141.9
million previously. The earnings
for the Group however improved 135.0
131.3
from RM2.0 million to RM3.3
million. The changes made to
the operational processes have 117.9
enabled the Group to reduce
tax liabilities for the year.
Operational Highlights 2014 2015 2016 2017 2018
Performance by Sector
Investment
All figures in RM’000 Holding Education Healthcare Others Consultancy
Revenue 20,086 56,828 11,426 50,816 6,996
Gross Profit 13,205 23,450 2,501 9,548 1,677
Profit from Operations 9,050 3,007 (1,655) 2,583 (202)
Profit Before Tax 5,595 2,154 (1,655) 2,260 (288)
Profit After Tax 5,076 1,576 (1,755) 1,465 (311)
* Figures are before consolidation adjustments for inter-company transactions
population, although enrolments million. The Setiabudi schools

Education have improved over the last 2 offering the local curriculum
I I U M Centre for Continuing years. The management of IIC is are however performing well.
Education Sdn Bhd (iCCE) relooking at blue ocean strategy to Setiabudi Primary School in
is in a conundrum with the increase revenue. Other than new particular is experiencing full
restructuring of academic programs are being developed, on- capacity at the lower levels
p r o g r a m s b y I I U M . Th e r e line distant learning (ODL) is now and we hope that the trend will
was hardly any new student being offered to boost student continue to move to the higher
recruitment and iCCE was only enrolments. The cost-cutting levels.
able to generate revenue of measures, including moratorium
RM3.7 million, from its existing on annual salary increments put in In 2018, IISM achieved 1st
student population. This figure placed in early 2017, is beginning in the World (A-levels) for
is only 70% of the revenue to see some positive results as Outstanding Cambridge Learner
achieved in 2017. As a result, iHESB is able to reduce its loss Award for Islamic Studies as
iCCE was not able to achieve from RM1.4 million to just below well as top in Malaysia for both
economies of scale on its RM1.0 million. Islamiyat and English as Second
operational cost and suffered a Language for the IGCSE 2018
loss before tax of RM0.8 million. The drop in the numbers of exams. Both IISM and Setiabudi
sponsored students at IISM as Schools have received 5-star
IIUM Higher Education Sdn Bhd explained above, resulted in IIUM ratings in the Standard Kualiti
(iHESB) which manages the Schools Sdn Bhd (iSchools) Institusi Pendidikan Swasta
International Islamic College (IIC) recording a drop of 8% from (SKIPS) awarded by the Ministry
is still experiencing low student last year to just under RM30 of Education.
Annual Report 2018
Group CEO’s
Review
volume of business, iMSC is
Turnover able to reap economies of scale
RM’Million
and reduce the operating loss
RM7.0 mil further to just over RM1 million.
RM66.6 mil
others Consultancies The addition of the Eye Clinic
and Obstetrics & Gynecology
to its medical services will see
double digit growth over the TOTAL OF
next few years. Management
is therefore upbeat on turning
around to profitability, at the
RM 11.4
latest by the year 2020. million
turnover in Healthcare
RM56.8 mil
RM11.4 mil EDUCATION I KOP Sdn Bhd (I KOP) has
DIVISION
Healthcare
started delivery of its iGesic
ointment to government which has more than 60 outlets
IIUM Educare Sdn Bhd hospitals and clinics under in the Klang Valley. IKOP is
(iEducare), which manages the the Government Approved also expediating the registration
Group’s childcare and pre- Product Procurement List of new products, including its
school business, was the star (APPL) beginning April 2018. new hand sanitizer formulation
performer in the education The 2-year supply contract has and paracetamol (PCM) honey
sector for 2018, continuing its a value of more than RM2.0 suspension, for eventual supply
upward trend in both turnover million, however the estimated under the government APPL
and profits. The branch outlets gross margin of 15-20% is scheme. IKOP is also revising
at MIDA, TM and TNB grew in much lower than the open the formulation of iGesic to
student numbers and iEducare market. Pending the full potential reduce cost further for the
was able to stamp its mark of the open market, IKOP has APPL contract. The company
further by securing Prasarana signed a contract manufacturing is still in the gestation period
Berhad and Malaysia Airport agreement to produce iGesic and hope to see profits by year
Holdings Berhad to its client’s for H L Pharmacy Sdn Bhd 2020 at the earliest.
list.
Healthcare
Healthcare has lived up to its
expectation and the turnover
of R M11.4 million is more
than double from that of year
2017. Currently, IIUM Medical
Specialist Centre Sdn Bhd
(iMSC) has managed to register
itself as panel with nearly 20
insurance companies and 3rd
party administrators (TPA). iMSC
has also increase it range of
medical services and is currently
the only medical private wing of
a public university with its own
24-hour Accident & Emergency
counter. Due to increasing
Annual Report 2018
Group CEO’s
Review
Consultancy Services Ministry of Education announces setting up of a
Following the change in University Consortium on Blockchain Technology &
Launches the e-Scroll system - iAT
government, several consultancy
projects that have been secured
were cancelled or deferred. This
impacted negatively onto IIUM
Entrepreneurship & Consultancy
Services Sdn Bhd. As a result,
turnover for 2018 was only
half of that achieved in 2017
and the company returned to
negative territory for profitability.
Management is however
confident that some of these
projects will eventually take off
in 2019 and is hoping to return
to profitability.
IIUM Advanced Technologies ledger technologies (DLT). Six reduced by I I U M in 2018.

Sdn Bhd (iAT) similarly lose out public universities will form Daya Bersih Sdn Bhd (DBSB)
on some crucial tenders. iAT’s the pioneer grouping whilst is now forced to move out of
bold move into new technologies the solution will be extended the comfort zone and compete
such as IR 4.0, blockchain and to other public and private with other major players in the
big data is beginning to see universities and colleges later. big market. In the year under
positive developments. For iAT has also secured a RM1.0 review, DB SB managed to
blockchain, the company has million job in Sudan to provide extend the FMS contract with
been mandated by Ministry IR 4.0 business solutions for Malaysian Multimedia University
of Education to spearhead smart factories. The likelihood of and secured a new FMS
a consortium to provide expanding the scope to include contracts from BASF Sdn Bhd
graduation scroll validation and smart farming is also very high. in Gebeng. The staff are now
authentication using distributed more confident of providing FMS
Training services is still the main services to high-end clients.
component of I I U M Shariah DBSB is targeting revenue from
Advisory Services Sdn Bhd external clients to exceed RM10
and shariah advisory is still million by year 2019.
very minimal. IIUM Corporate
Management Sdn Bhd has With the RM35 million R&R
begun to expand its external redevelopment project still
clients but is still very selective awaiting approval from Majlis
to ensure that only good-paying Perbandaran Selayang (MPS),
clients are considered in view there was hardly any construction
of the high non-payment risk of and property project in progress
TOTAL OF the industry. under I I U M Properties Sdn
1.0 million
Bhd (iProperties). iProperties
RM Other Sector
only managed a turnover of
RM7.7 million and this volume
job secured in Sudan to
provide IR 4.0 business With budget cuts still in play, is insufficient to cover its
solutions for smart a sizeable portion of scope operating costs. Pending the
factories of works in FMS has been commencement of the R&R
Annual Report 2018
Group CEO’s
Review
development project, iProperties RM500,000 annual contribution
is now focusing on planning
Corporate Responsibility be channeled to the Rector’s
work for IIUM South Zone, an Being a wholly owned university Trust Fund to finance flagship
80-acre piece of land south company, the Group’s primary programs under the Sustainable
of the IIUM Gombak campus. objective is to contribute to Development Goals (S D G)
Several components have the its shareholder to reduce objectives. In addition to the
been identified to kick-off the dependency on government above lump sum payment, the
development but iProperties has funding. In view of the better Group continues to sponsor
yet to secure IIUM’s approval performance for the year, student activities and kulliyyah-
on the layout and to submit to the Group is rewarding its based programs in their effort
MPS for zoning approval. shareholder with a dividend to give back to the community.
payment of RM1.0 million or
At the company level, I I U M equivalent to 20 sen per share. iEducare is also continuing to
Holdings Sdn Bhd (iHoldings) The above amount was after offer childcare services and
is no longer dependent having considered other direct pre-school education at highly
on management fee from and indirect cash contributions subsidized rate to more than
subsidiaries to sustain made by the Group to its 6 00 children of the I I U M
operations. The hostel student shareholder. community at both Gombak
rental in Pagoh is generating and Kuantan campus. The value
nearly RM10 million in revenue, The annual contribution of of these subsidies equates to
and car park operations in Pasar RM500,000 to the President nearly RM1.0 million annually.
Borong Selayang another RM6 CSR Fund, since its introduction Similarly, DBSB will continue
million. Together with dividends in 2014, has enabled IIUM to to provide integrated F M S
and management fees from embark on multitudes of student works to the university at a
subsidiaries, iHoldings recorded and community engagement highly subsidised rate under the
a turnover of RM20.0 million. p r o g r a m s . Th e U n i v e r s i t y existing contract. The monetary
The profit before tax of RM5.6 Management Committee has value of subsidy contributed by
million is double from the decided in early 2019 that the DBSB is in excess of RM30
previous year of RM2.8 million. million annually.
Profit BeforE Tax

RM’Million
RM5.1 mil RM0.3 mil

others Consultancies
RM2.2 mil Zakat contribution to IIUM Endowment Fund, IIUM

EDUCATION
( RM1.7 mil )
Healthcare
Annual Report 2018
Group CEO’s
Review
In line with the shariah ethics, the Group paid a total sum of RM590,304 as corporate zakat during
the year to Lembaga Zakat Selangor for ‘haul’ year 2017. The payment was made via IIUM Endowment
Fund, with an understanding that a percentage of the contribution will be distributed to qualified ‘Asnaf”
recipients within the IIUM community.
In the course of conducting its business, the Group also contributes to the University in many forms
including:
Staff Salary of Pilot Plant for teaching & learning RM 1,149,839
Repayment by iSchools in lieu of rental for school building RM 1,650,000
Rental of At-Tabbari Complex for IIS Kuantan RM 477,000
Hostel rental to IIUM Endowment Fund – Sheikh Humaid & LTAT RM 735,000
Rental of office space and classrooms/facilities RM 543,302
Royalties/Licensing/Share of profits to Kulliyyahs RM 194,211
TOTAL – OTHER CASH CONTRIBUTIONS RM 4,749,352
iH ESB will expand ODL to potential of the business is huge

Promising Future increase student population and and IKOP is well positioned to
Year 2019 is expected to be reach a wider spread beyond its capitalize on the opportunities
even more challenging. With campus ground. New diploma with the registration of more
the escalation of the trade programs that have higher products.
war between the U S and employability rate will be offered
China, the rest of the world is in 2019. iEducare is now looking DBSB will be further encouraged
expected to face uncertainties at double digit growth. Marketing to spread its wings and
to their economies. Ringgit efforts are being increased capture the external market,
may continue to decline and in light of the government’s and has targeted the sizeable
Bank Negara Malaysia is drive for government agencies FMS contracts for Putrajaya
having a difficult time with their and corporate organisations government offices that will
Monetary Policy to maintain a to establish childcare centres be up for renewal in 2019.
low overnight policy rate (OPR) at their workplace. The Bank iProperties progress however
to spur economic growth, on Negara Malaysia contract which will be curtailed by delays in
the back of the threat of further is open for tender in 2019 the approval by MPS for the
reduction in Ringgit against the has the potential to increase R&R development project.
Greenback. iEducare’s turnover by 50%. Nevertheless, some of the
components in the South Zone
Nevertheless, the Group is B oth iM S C and I KO P will development are ready to be
optimistic of the future based increase their product offerings packaged and will contribute
on the action plans t aken and will be expected to substantially over the 10-year
and strategies already put in achieve double digit growth. period after 2020. iHoldings
place. The Group will strive to Management is also hopeful will look at expanding into
increase value creation further that iMSC will break-even by new business in the green
and reward its shareholder year 2020 at the latest. IKOP technology and high technology
accordingly. may take a slightly longer time to achieve long term growth
to achieve profitability but the and sustainability.
Annual Report 2018
Group CEO’s
Review
The consultancy business is a mix-bag of marbles and the Management will be reviewing and recommending
for a closure for business operations that are too kullliyyah-centric and has no future of turning around or
contributing substantially to the Group.
Acknowledgement and Appreciation

On behalf of the Management team, I would like to express our utmost gratitude to the Board of
Directors and shareholder for your confidence and support. Your continued guidance has enabled me
and my team to excel to the best of our abilities.
To my team of workforce in the IIUM Holdings family, I am truly grateful. The success of the Group
would not have been possible without your dedication, commitment and hard work. It has been truly a
pleasure working with all of you and I look forward to lead the team again as we challenge to achieve
even greater success in the fiscal year to come.
Finally, I would like to express my heartful appreciation to our customers, suppliers, business partners
and most importantly our shareholder, International Islamic University Malaysia for their continued trust
and unrelenting support.
Dato’ Haji Naharudin Ali

Group Chief Executive Officer
Annual Report 2018
Board of Directors
NOURISHING THE
POSSIBILITIES
Annual Report 2018
Board of
Directors
4 1 3
Annual Report 2018
Deputy Chairman
1 Tan Sri Dato’ Sri Dr. Abdul Aziz bin Abdul Rahman
Board of Directors
2 Prof. Emeritus Tan Sri Dzulkifli bin Abdul Razak
3 Dato’ Ahmad Zailan bin Ashaari @ Shaari
4 Dato’ Rosini binti Abd Samad
5 Dato’ Jamaludin bin Hassan
6 Datuk Ir. Khalilur Rahman bin Ebrahim
6 2 5
Annual Report 2018
Director’s
Profile
TAN SRI DATO’ SRI DR. ABDUL AZIZ bin ABDUL RAHMAN
Deputy Chairman of IIUM Holdings Sdn Bhd
Tan Sri Dato’ Sri Dr. Abdul Aziz bin Abdul Rahman the corporate level he was with Price Waterhouse
graduated with a Bachelor of Commerce from & Co. Sydney, Malaysia Airlines and Managing
University of New South Wales, Sydney, Australia. Director of Bank Rakyat Bhd before venturing into
He is a member of the Malaysian Institute of Certified politics and public service as the Pahang, State
Public Accountants (MICPA) and the Malaysian Executive Councilor and Deputy Chief Minister.
Institute of Accountants (MIA). He obtained his He was a Senator of Malaysian Parliament for a
MPhil (Master of Philosophy) and Ph.D from National maximum period of two (2) terms. For some time,
University Malaysia (Universiti Kebangsaan Malaysia, he was a presenter for “Fast Forward” programme
UKM). on Radio Television Malaysia (RTM1).
He has served as Chairman and Board member of Presently, he is a member of the Royal Pahang
several government institutions, agencies and public Council, Chairman of Chuan Huat Resources
listed companies, both in Australia and Malaysia. At Berhad, and President of Riding for the Disabled
Malaysia (RDA).
Annual Report 2018
Director’s
Profile
Prof. Emeritus Tan Sri Dzulkifli BIN Abdul Razak

Director of IIUM Holdings Sdn Bhd
Prof. Emeritus Tan Sri Dzulkifli bin Abdul Razak is Laureate) and recipient of numbers of Honorary
the 6th Rector of the International Islamic University Doctorate from various international universities. In
Malaysia (IIUM)). He is Immediate Past President October 2018, he was conferred the title Professor
of International Association of Universities (IAU), Emeritus from USM.
based at UNESCO, Paris, after serving as the
14th President of IAU (2012-2016). He is also an His book Nurturing a Balanced Human Person –
Honorary Professor at University of Nottingham The Leadership Challenge won the 2016 Anugerah
since 2014. Buku Negara (2016 National Book Award). A new
expanded edition of the same title was released in
He had served as the 3rd Chairperson, Board of April 2017, and is listed as the 50 Most Malaysian
Directors, Universiti Sains Islam Malaysia (USIM), Titles for International Rights 2017/2018 by the
the 5th Vice-Chancellor/President of Universiti Sains Majlis Buku Kebangsaan Malaysia (National Book
Malaysia (USM) from 2000-2011; and the World Council Malaysia). His contributions in 2018 are:
Health Organisation (WHO) Expert Advisory Panel The Fourth Industrial Revolution – The Leadership
on Drug Policy and Management (1995-2010) as Dilemma, and Voicing Concern, the seven volume
well as WHO Scientific Committee of Tobacco of the same title comprising his weekly column
Product Regulation (2004-2006). from 2015-2017. More recently the title Pentafsiran
Baharu Falsafah Pendidikan Kebangsaan dan
Tan Sri Dzulkifli is the 1st Asian to receive the Perlaksanaannya Pasca 2020 (IIUM Press, 2019)
prestigious 2017 Gilbert Medal and the 7 th won the Anugerah Buku Negara, Kategori Perdana
internationally from Universitas 21, a group of (2019 National Book Award, Premier Category).
renowned research intensive universities from 16
countries. He also received the 2017 Asia HRD In addition, over the years, he has authoured more
Contribution to Society Award as recognition for than 1,000 articles in journals and other media,
people development in the academic world. as well as delivered numerous invited keynote
addresses, nationally and internationally.
Tan Sri Dzulkifli is Fellow, Academy of Sciences
Malaysia (FASc), the World Academy of Art and For more than twenty years he writes weekly
Science (FWAAS) and Malaysian Institute of columns for Malaysia’s oldest daily, The New
Malaysia (FMIM). He is also Honorary Lifetime Straits Times, since 1995; and in 2015 Op-Ed
member of Asian Academy of Management, and weekly for The Sun, an English daily with the
more recently Fellow of the World Academy of largest circulation in Malaysia available at www.
Islamic Management (FWAIM). He was awarded the thesundaily.my/news/columns/myview.
2017 Tokoh Akademik Negara (National Academic
Annual Report 2018
Director’s
Profile
Dato’ Ahmad Zailan bin Ashaari @ Shaari
Director of IIUM Holdings Sdn Bhd
Dato’ Ahmad Zailan bin Ashaari @ Shaari is Interactive Panel Discussion – Rethinking Finance:
currently the Executive Director of Finance (CFO) Finance as a University Business Partner in The
of the International Islamic University Malaysia International Higher Education Strategic Finance
(IIUM) and has been serving IIUM for the last and Management Accounting Forum 2013 held in
30 years. He obtained his Bachelor degree in Singapore. Dato’ Ahmad Zailan spearheaded the
Accountancy from the University Technology formulation of the IIUM Strategic Plan-Financial
MARA in 1988. His career in the financial sector Sustainability (2015-2030) and the Champion
started in the early 80’s at the Bank Bumiputra of IIUM Financial Sustainability. He also led the
Malaysia Berhad and Sapura Holdings Berhad. Goverment Service Tax (GST) Committee for the
implementation of GST at the Public Universities,
Dato’ Ahmad Zailan started his career in IIUM in Malaysia.
1988 as an Assistant Bursar. He was appointed
as the Executive Director of Finance in 1999. Dato’ Ahmad Zailan was appointed as Committee
He is a qualified Chartered Accountant and a Member by the Ministry of Higher Education as
member of the Malaysian Institute of Accountant follows:
as well as Certified Financial Planner Malaysia. • Working Committee for Preparation of Proposal
Paper for the Improvement of Tax Implication to
Dato’ Ahmad Zailan served as the IIUM Company Donors in Public Universities in 2012.
Secretary from 1998 until 2006. He was the
• Committee for Improvement of Guide to
Deputy Chairman of the IIUM Balanced Scorecard
Assessing Good Governance in Malaysian
(BSC) core team, which led IIUM to be inducted
Universities in 2015.
in the coveted award of Hall of Fame in 2008,
the second university in the world to be inducted • Working Committee for Financial Sustainability
in this prestigious list. He was invited to share Plan for Public Universities in 2014.
his experience in implementing BSC at SAS • Monitoring Committee for Standard Accounting
Global Conference 2009 in Washington, USA, System for Government Agencies (SAGA) at
in Performance Management Symposium held Ministry of Higher Education level in 2016.
at Multimedia University, Malaysia in April 2010
and at BSC Asia Pacific Summit 2010 in Manila, Dato’ Ahmad Zailan was appointed as Director of
Philippines. IIUM Holdings Sdn Bhd as follows:
• Term 1: 17/12/2007 until 31/12/2009
Dato’ Ahmad Zailan was appointed as Chairman of
• Term 2: 26/04/2012 until 24/06/2015
Council of Public University Bursars (2009-2011).
He was appointed as Working Committee in the • Term 3: 06/09/2016 until Current
Public Finance Reform for the New Economic
Model (NEM), Performance Management and Dato’ Ahmad Zailan was appointed as Chairman
Delivery Unit (PEMANDU) under Prime Minister’s of IIUM International Schools from 16/06/2003
Department in 2011. He was invited by the Liquid until 31/12/2009.
Learning (Asia) to be one of the panels for the
Annual Report 2018
Director’s
Profile
DATO’ ROSINI BINTI ABD SAMAD
Independent Non-Executive Director of IIUM Holdings Sdn Bhd
Dato’ Rosini binti Abdul Samad, a Malaysian Accountant General’s Department, Malaysia. She
aged 64, has been an Independent Non-Executive then held The Accountant General’s Nominee
Director of MSM Malaysia Holdings Berhad since on the Council of MIA. She was a member of
7 January 2015. She is also the Chairperson of the Board of Directors of Percetakan Nasional
the Audit Committee and a member of Board Malaysia Berhad (PNMB) for seven years from
Governance and Risk Management Committee. 2007 until 2014, and served as Chairperson of
Audit Committee, member of Nominating and
She holds a Bachelor of Economics (Accounting) Remuneration Committee, Tender Committee and
(Hons) from University of Malaya and Masters Disciplinary Committee at PNMB.
of Business Administration from University of
Cardiff, UK. Respectively, she is also the Honorary Beginning 1 July 2015, Dato’ Rosini was
Fellow CPA Australia, a professional member of appointed as Independent Non-Executive Director
the Malaysian Institute of Accountants (MIA) and on the Board of IIUM Holdings Sdn Bhd. She is
an Audit Committee Member of The Institute of also Chairperson of Audit and Risk Committee
Internal Auditors Malaysia. and a member of Nomination and Remuneration
Committee and Remedial, Grievances and
She has drawn decades of experience from Disciplinary Committee.
immersion in the civil service sector. Formerly the
Deputy Accountant General (Corporate) in the
Annual Report 2018
Director’s
Profile
DATO’ JAMALUDIN bin HASSAN
Dato’ Jamaludin bin Hassan graduated from the During his tenure with the Government of Malaysia
University of Malaya with a Bachelor of Economics and MIDF, Dato’ Jamaludin had served on the
(Honours) degree and Post-graduate Diploma Boards of Pahang State Economic Development
in Business Analysis, University of Lancaster, C o r p o r a t i o n , Ke d a h S t a t e D e v e l o p m e n t
United Kingdom and attended a course on Policy Corporation, Amanah International Finance Sdn
for Public Enterprises in Developing Countries, Bhd, Amanah Factors Sdn Bhd and Malaysian
Harvard Institute for International Development, Technology Development Corporation. Whilst
Harvard University Boston, USA. serving with the Treasury, he was also made
Corporate Advisor of Sabah Gas Industry and
He started his career in the Administrative and Sabah Energy Corporation.
Diplomatic Service in 1974 and had served in
various capacities in the public service including Upon retirement from MIDF, Dato’ Jamaludin was
positions as Assistant Director, International Trade appointed as Independent Non-Executive Director
Division, Ministry of Trade and Industry, Assistant and Chairman of TFP Solutions Bhd, a company
Trade Commissioner, Malaysian Trade Mission listed on the ACE Market of the Kuala Lumpur
in Sydney Australia, Secretary Road Transport Stock Exchange and served the Company for 10
Licensing Board, Ministry of Public Enterprises, years from 2007 to 2017 and at the same time
Principal Assistant Secretary, International Chairs the Audit Committee. He also sit in as the
Economic Section, The Treasury, Special Officer Principal Director (Financial Services) on Lloyds,
to Secretary General, Ministry of Finance and Earle, Panicker, Chartered Accountants, Malaysia.
Special Assistant to The Chairman, Malaysia
Airlines System (MAS). Subsequently, he opted Beginning June 2013, Dato’ Jamaludin was
out to retire early from the Government Service appointed as an Independent Non-Executive
and joined Malaysian Industrial Development Director on the Board of IIUM Holdings Sdn
Finance Berhad (MIDF) as General Manager, Bhd and subsequently as Chairman of Remedial,
Corporate Affairs in 1994 and moving up to Grievances and Disciplinary Committee. He
become the Chief Operating Officer of the presently serves on the Board of IIUM Higher
Development Finance Division before retiring in Education Sdn Bhd; the subsidiary company
2007 and thereafter appointed as Advisor at the of IIUM Holdings Sdn Bhd and previously was
Group Managing Director’s Office. appointed as Chairman of I I U M Centre for
Continuing Education from 12 April 2016 until
15 March 2018.
Annual Report 2018
Director’s
Profile
Datuk Ir. Khalilur Rahman bin Ebrahim
Datuk Ir. Khalilur Rahman bin Ebrahim graduated For his contribution to the industry he was
with Bachelor of Science (Hons) in Electrical and awarded the Entrepreneur Award by the Malaysian
Electronic Engineering from Brighton Polytechnic Malay Chamber of Commerce in 2005 “Anugerah
U.K. in 1973. He obtained his Master of Science Usahasama Tulen” and “Darjah Mulia Seri Melaka”
in Electronics from University Technology Malaysia which carries the title “Datuk” in 2008.
in 1993.
He is currently :
He started his career in 1973 as a maintenance • Executive Chairman, System Consultancy
engineer in the communication department of Group of Companies
Malaysian National Electricity Board. He joined
Sapura Holdings Berhad in 1984 as Head of R&D, • Member of the Board of Governors, The Malay
where he was responsible for the development of College Kuala Kangsar
many innovative products like the PABX, mobile • Member of the Board of Trustees of The Malay
phones, pagers and feature phones, which won College Foundation
several national awards. • Board Member, Malaysia Industry – Government
Group for High Technology (MIGHT)
Datuk Khalilur started System Consultancy
Services in 1994, and now runs a group of • Board Member of the IIUM Holdings Sdn Bhd
4 companies with 230 personnel dealing with • B oard Member of the I I U M Advanced
Defense Technologies, Industrial Automation, Technologies Sdn Bhd
Building Security Systems and Composites.
DK Composites pioneered in composites domes,

which became well recognised landmarks in
Malaysia, Singapore, UAE and Las Vegas,
manufactures sailing yachts for the international
market. In 2005, DK won the prestigious Christofle
Asian Boating Award for Best Asian Boat Builder.
Annual Report 2018
Annual Report 2018
Corporate Report
THE FOUNDATION
FOR SUCCESS
Annual Report 2018
Education
Sector
IIUM CENTRE FOR CONTINUING EDUCATION SDN BHD
Final Exam - iCCE
IIUM Centre for Continuing Education (iCCE) iCCE which is dedicated to the ideals of lifelong
was formerly known as Centre for Excellence in education, offers numerous programmes to
continuing Education and enhanced Teaching – working adults who wish to acquire additional
Learning (C-ExCEL). iCCE was established in knowledge and skills related to their vocation for
August 1999 after IIUM decided to reorientate career advancement. Currently iCCE offers the
itself in serving the community that lies within following academic programme:
and beyond the confines of IIUM campus with
knowledge and information. It was incorporated • Bachelor of Business Management (BBM).
as iCCE in 2005. • Bachelor of Education (specialization in Islamic
Education, Guidance & Counselling and
iCCE is an education and training centre that Teaching English as Second Language).
aims at providing quality education and training
• Executive Diploma in Business Administration.
accessible to a wider scope of audience. With the
tagline - BRINGING IIUM TO THE COMMUNITY, • Certificate in Khatam Al Quran 3T (Talaqi, Tulis
iCCE offers and support education and training & Tashih).
programmes in various fields, from the lowest to
highest institutional levels of education. iCCE also provides training and short courses
in the mode of in-house trainings, workshops
and many more. We are promoting I I U M’s
expertise and utilising available resources within
the university including the researchers, lecturers
and experts as well as the venues for public and
corporate sectors. iCCE provides well-qualified
lecturers and experienced practitioners to conduct
classes to ensure what is imparted is relevant and
practical. iCCE is proud and committed in ensuring
quality services in the delivery of the programmes
offered. Creative, fun and dynamic approaches are
implemented in delivering and sustaining excellent
services, of the courses offered.
Annual Report 2018
Education
Sector
IIUM CENTRE FOR CONTINUING EDUCATION SDN BHD
iCCE is a registered HRDF Learning Centre and has delivered extensive certification programmes, study
tour, international trainings for international clients. Among others, iCCE has organised the following
events to achieve its objectives to NURTURE THE COMMUNITY VIA UNIVERSITY.
iCCE programme during 2018:
Title Date
Education Booth at Politeknik Merlimau, Melaka 17.4.2018
Education Booth at Politeknik Nilai, Seremban 17.4.2018
Corporate Visit to High Singapore Commission 07.6. 2018
Corporate visit from India High Commission 26.6.2018
Registration Day for Bachelor of Business Management, Semester 5, 2017/2018 30.6.2018
3TAQ Class Launching at MRSM Kuantan, Pahang 6.8.2018
3TAQ Class Launching at Sekolah Menengah Sains Selangor 25.7.2018
3TAQ Class Launching at Tahfiz Bagan Datoh, Perak 6.8.2018
Seminar Simulasi Sains UPSR 5.8.2019
Education Booth at LHDN Wangsa Maju 14.8.2018 & 15.8.2018
Education Booth at Jabatan Agama Islam Selangor 20.8.2018
Inception of Bachelor of Business Management Programme at IIUM Kuantan 11.8.2018
Inception of Bachelor of Business Management Programme at IIUM Pagoh 11.8.2018
In House training course Marketing Strategy: Inbound and Outbound Marketing 30.11.2018 to 02.12.2018
for Colleges
Graduation’s Day 2018 10.11.2018-13.11.2018
Bengkel Menjawab Kertas PT3 4.12.2018
School Holiday Programme “Creative through Multimedia” 10.12.2018, 12.12.2018 and
13.12.2018
School Holiday Programme “Robotic and Technology” 17.12.2018 to 20.12.2018
Solid Waste Management Workshop

Annual Report 2018
Education
Sector
IIUM HIGHER EDUCATION SDN BHD
IIC offers the following academic programmes;
No Programme
1 Foundation in Arts
2 Certificate in English
3 Certificate in Business Administration
4 Certificate in Early Childhood Education
5 Diploma in Accounting
6 Diploma in Risk Management
7 Diploma in International Business
8 Diploma in Marketing Management

International Islamic College (IIC), established 9 Diploma in Business Administration
in 2000 by IIUM Higher Education Sdn Bhd is a 10 Diploma in Enforcement Management
wholly-owned subsidiary to IIUM Holdings Sdn 11 Diploma in Islamic Banking and Finance
Bhd and International Islamic University Malaysia 12 Diploma in Office Management
is the ultimate holding company. IIC serves as a
13 Diploma in Graphic Design
gateway to knowledge and erudition.
14 Diploma in Computer Science
15 Diploma in Creative Animation
16 Diploma in Information Technology
17 Diploma in Halal Industry Management
18 Diploma in Contemporary Islamic Sciences
19 Diploma in Al-Shari’ah Al-Islamiyyah
20 Diploma in Islamic Early Childhood Education
21 Diploma in Business Administration (Online
Learning)
22 Diploma in Islamic Early Childhood Education

(Online Learning)
23 B achelor of Business (Entrepreneurship), 3+0

MOU with Al Madinah International University accredited programme in collaboration with
Federation University, Australia
24 B achelor of Commerce (Accounting), 3+0

accredited programme in collaboration with
Federation University, Australia
Annual Report 2018
Education
Sector
IIUM HIGHER EDUCATION SDN BHD
Currently, the college is ‘home’ to 2,500 students I IC is currently running its Open Distance
studying for various academic programmes in its Learning programme through Diploma in Business
vibrant campus in the Batu Muda District of Kuala Administration and Diploma in Islamic Early
Lumpur. IIC is equipped with modern facilities and Childhood Education with significant number of
has qualified and dedicated workforce to ensure working adults registering for these courses. These
the delivery of quality education to its students. IIC programmes are also extended to international
embodies cultural diversity with its multi-cultural students around the globe.
workforce and student population. The number of
international intake is growing and in the spirit of
openness in Islam, IIC has an increasing population
of non-Muslim students, local and international
alike.
In 2017, IIC was awarded MyQuest ratings with

5 stars in the International Students Readiness
Cluster and 4 stars in the “large category”
(enrolment number of more than 2000 students).
Overall, IIC managed to increase the ratings Contribution for the award of Tan Sri Dato’ Seri Sanusi Junid
across all clusters with 4 stars.
I IC has implemented Quality Management

System and migrated to I S O 9 001:2015
Certification from SIRIM since 2017. All of
IIC’s academic programmes are accredited by
Malaysia Qualification Agency (MQA) and has
been receiving grade ‘A’ from the National Higher
Education Fund Corporation (PTPTN) since 2004.
Internationalization of higher education has become International Islamic College in TV Al-Hijrah

a priority of IIC. Therefore in 2019, IIC developed
partnerships with multiple International Boarding
Schools in Indonesia, Al Misbah Academy,
Singapore, and Fajar Hidayah Foundation (Banda
Aceh) to franchise IIC’s academic programmes
at their institutions. Additionally, Al Madinah
International University (MEDIU) and University of
New England, Australia (UNE) have also partnered
with IIC to provide the Bachelor Degree pathway
to IIC’s graduates through articulation courses.
Through articulation courses, students completing
a program of study with MEDIU and UNE as
partner institutions can receive advanced standing
(credit) on beginning their study.
SMK Gombak Setia Convocation Ceremony at IIC
Annual Report 2018
Education
Sector
IIUM SCHOOLS SDN BHD
IIUM Schools Sdn Bhd (iSSB) was formed as Mission
a private education provider company in 1997.
The company is providing an integrated and To develop and manage quality Islamic education
holistic education which adheres to the Islamic institutions to national and international community
tenets and values at the primary, secondary and through excellent strategic business approach
A- levels, so as to allow all children to experience aligned to universal and Islamic values.
learning success and become life-long learners
and contributing members in the community. Our Motto
schools International Islamic School Malaysia
and Sekolah Setiabudi have the best attributes “Work Smart, Be Proactive”
of private institutions, i.e., small class sizes,
stressing in high academic performance, trained Company Ownership
and experienced teachers, providing high-quality
programmes and having state-of-the-art school The IIUM Schools Sdn Bhd (iSSB) – 453541-X is a
facilities. subsidiary of IIUM Holdings Sdn Bhd incorporated
on 21st November 1997.
Vision
To be a major provider of quality Islamic education

nationally and internationally by 2025.
Annual Report 2018
Education
Sector
PRODUCT AND SERVICES
iSSB believe in our uniqueness to provide comprehensive and holistic education which produce
distinctive graduates through;
SCHOOLS DESCRIPTION ADDITIONAL PROGRAM

IISM Primary • Grade 1-6 • Hikmah Programme
(Gombak & Kuantan) • Cambridge Curriculum & Own • Umrah
Islamic Module • Ibadah Camps
• Exams: • Halaqah
~ CPC- Cambridge Primary • Congregational Prayer
Checkpoint • Tahfeez
~ ICT Starters
IISM Secondary • Intensive English (Beginner &
(Gombak & Kuantan) Intermediate)
• Lower Secondary (Grade 7, 8 & 9)
• Upper Secondary (Grade 10 & 11)
– IGCSE / O-Levels
• A-Levels (Junior & Senior)
• Exams:
~ IGCSE (Grade 11)
~ A-Levels (Senior)
~ Dual Certification Program
Sekolah Rendah Setiabudi • Kurikulum Standard Sekolah • Hikmah Programme
Rendah (KSSR) for Year 1 & 2 • Umrah
• Kurikulum Bersepadu Sekolah • Ibadah Camps
Rendah (KBSR) for Year 3, 4, • Halaqah
5 & 6 • Congregational Prayer
• JAIS Syllabus (Year 1 – 6) • Tahfeez (al-Furqan Program)
• Exams:
~ Ujian Penilaian Sekolah Rendah
(UPSR) – Year 6
~ Penilaian Sekolah Rendah
Agama (PSRA) – Year 6
Sekolah Menengah • Kurikulum Standard Sekolah
Setiabudi Menengah (KSSM) – Form 1
• Kurikulum Bersepadu Sekolah
Menengah (KBSM) – Form 2, 3,
4 & 5
• Exams:
~ Penilaian Tahap 3 (PT3) –
Form 3
~ Sijil Pelajaran Malaysia (SPM) –
Form 5
Annual Report 2018
Education
Sector
STUDENTS PROFILE
1. Student Enrolment 2014-2018
School 2014 2015 2016 2017 2018

IISM Primary 299 308 313 286 299
IISM Secondary 393 400 378 375 358
IISM Kuantan 52 56 66 65 68
IISM ( A-Levels) 100 209 189 77 30
Setiabudi Rendah 634 728 812 833 871
Setiabudi Menengah 410 433 480 472 482
Total 1,888 2,134 2,239 2,108 2,108
2. Student population in IISM (Malaysian and International)
IISM IISM IISM IISM Total

Status A-Levels Secondary Primary Kuantan IISM
Foreign 24 226 150 37 437
Malaysian 6 132 149 31 318
Total 30 358 299 68 755
Annual Report 2018
Education
Sector
STUDENTS ACHIEVEMENT
1. PSRA Result – Sekolah Cemerlang Peringkat Negeri Selangor – Awarded by JAIS

2. Dalina Safiyah bt Azdi – Pelajar Terbaik PSRA Daerah Gombak – Awarded by JAIS
3. Five (5) Stars Award of Standard Kualiti Institusi Pendidikan Swasta (SKIPS) for SETIABUDI & IISM
4. Establishment of Al-Furqan class (Tahfeez) in Sekolah Menengah Setiabudi
5. 48.1% of total students achieved 5A’s and above in PT3 2018.
6. 31.1% of total students achieved 5A’s and above in SPM 2018.
7. Nurfatihah Irwan bt Rudy Irwan – Juara Keseluruhan Golf Peringkat Kebangsaan MSSM (Pasukan
Selangor)
8. Muhammad Arif b. Zulfikry – Juara Keseluruhan Kejohanan Akuatik Peringkat Kebangsaan MSSM
(Pasukan Selangor)
9. A-Levels Top of the World Cambridge Achievement (by subject) – Islamic Studies
10. Top in Malaysia IGCSE May/June 2018 :
a) Faza Amal Sophian (Islamiyat)
b) Ola Osem Mahmoud Abdou Ali (Foreign Language French)
c) Roaa Psem Mahmoud Abdou Ali (Islamiyat)
d) Muhammad Lazuardy Ghani (English as Second Language)
11. High Achievers IGCSE May/June 2018 - Muhammad Lazuardy Ghani & Zakkiamani Saudi
12. Asian Junior Robocup 2018 :
a) 1 Gold (Soccer 2 on 2)
b) 1 Excellent Award (Aerial)
c) 1 Silver (Rero Humanoid)
13. Kangaroo Math Competition 2018 :
a) Zhang Wenbo – Gold (Junior)
b) Mohammed Bilal – Silver (Cadet)
c) Nadiva Nuriftitah – Silver (Junior)
d) Sanjana Mosharrat – Bronze (Junior)
e) Abdullah Harith Azman – Bronze (Junior)
CORPORATE SOCIAL RESPONSIBILITY (CSR) PROGRAM
1. Tuition Class for Asnaf students in Gombak in collaboration with Pejabat Pendidikan Daerah (PPD)
Gombak
2. Sponsored Ten (10) Asnaf students from Thailand for English Summer Camp in collaboration with
Pusat Zakat Selangor
3. Program Celik Al-Quran for 200 secondary school students in Gombak in collaboration with PPD
Gombak
Annual Report 2018
Education
Sector
IIUM EDUCARE SDN BHD
IIUM Educare Sdn Bhd (iEducare) endeavors
to ensure that the care and education services
offered to the children and their families are of
the highest standard at all times. This is reflected
in the flexible programs designed to meet the
individual and diverse needs of each child
including intellectual, moral, social, emotional and
spiritual. iEducare aims to become the leading
and regionally recognized center for Childcare,
Preschool as well as Daycare.
Since its initiation more than 20 years ago,

iEducare continuously provides children with
the best quality of care and education with THE STRENGTH OF iEDUCARE
comprehensive facilities and equipment to cater for • Almost 25 years involvement in the industry.
children developmental needs in warm and homely
environment. To date, iEducare has 14 Childcare • Licensed service provider under both Jabatan
and Preschool centers with more than 1500 Kebajikan Masyarakat (JKM) and Pejabat
children. In addition to that, iEducare has been Pendidikan Negeri.
entrusted by corporate agencies such as Tenaga • Offers quality care with respectable reputations.
National Berhad (TNB), Telekom Malaysia Berhad • S taff are devoted, skilled, steadfast and
(TM) and Malaysian Investment Development genuine.
Authority (MIDA) to operate their Preschool and • Utilizes a sophisticated and successful learning
Childcare Centres. system.
• Is strategically located.
Service Age Group Operating Hours
• Our students experience numerous fun and
Childcare 2 months – 3 year old 7.40 am – 6.00 pm learning activities such as water play, sand
Preschool 4 year old – 6 year old 7.40 am – 1.00 pm play, outdoor activities and field trips.
Daycare 4 year old – 6 year old 1.00 pm – 6.00 pm
OUR OBJECTIVE
• To coach and nurture a child with love and
care.
• To inspire and to encourage children’s spiritual,
social, physical, cognitive and linguistic
development.
• To provide a child’s learning process by
providing exposure, opportunity and motivation
in an organized environment.
• To provide and supervise programs designed
to meet the needs of every child.
RECENT RECOGNITION
•
Our Taska MIDA Genius was recognised as
a 5-Star Childcare Centre by JKM Wilayah
Persekutuan in October 2018.
Annual Report 2018
Consultancies &
Services Sector
IIUM ENTREPRENEURSHIP AND CONSULTANCIES SDN BHD
IIUM Entrepreneurship and Consultancies VISION
Sdn Bhd (iEC) was incorporated on 7th To be a Pinnacle of Excellence in Consultancy
November 2001 to pilot the consultancy and and Entrepreneurship services.
business activities of the International Islamic
University Malaysia. MISSION
iEC offers the finest consultation services
and activities in leading areas of Economics, P Provide comprehensive consultancy services
Management, Built Environment, Environmental
Sciences, Law and Regulatory, Engineering,
Medicine and Sciences, Islamic Reveal Knowledge Realization of Islamic and universal values and
R ethics
and Human Sciences, Language and Literature
and Information Communication Technology.
iEC is all set to provide the best and the most

E Exhibit the excellence of IIUM experts
comprehensive services and activities for the local

and international market. Equipped with expertise,
knowledge and workforce, it is forging ahead to A Achieve Professional Business Conduct
be the leading force.

Commitment to competency, efficiency, quality &
C excellence
H Hosting consultancy databases & services
Our Clients
Launching of National Housing Policy at Jabatan Perumahan

Negara (JPN)
Discussion on National Housing Standard and

QLASSIC at CIDB
Annual Report 2018
Consultancies &
Services Sector
IIUM Advanced Technologies Sdn Bhd
Dr. Umar Aditiawarman, Senior Head of Projects and Consultancy and a Founding Team Member Who has been with
the Company for More Than 7 Years has Decided to Make his Next Career Move Back Home in Indonesia. IATgeeks Pay
Tribute to Dr. Umar’s Immense Contribution to the Company and Wishes him the Best of Luck in his Next Endavour
IIUM Advanced Technologies Sdn Bhd iAT is also keeping abreast with new technologies
(iAT) is committed to serve the University as a hence our involvement in using Blockchain to solve
systems integrator of choice, as well as seeking an increasingly serious problems for the higher
new opportunities by commercializing IIUM’s education sector; falsification of graduand’s scroll.
research output and technology know-how to During IIUM’s 2018 Convocation, the YB Minister
various industry players in the marketplace. Our of Education has launched the Blockchain-based
main focus remains in the field of Information E-Scroll platform where the public can verify the
Communications Technology (ICT) and Research validity of IIUM graduand’s scroll using QRcode
Enterprise (RE). and mobile app with the data stored in Blockchain.
The iAT initiative is precursor to a wider, larger
deployment across the higher education sector,
both public and private institutions.
RESEARCH ENTERPRISE
iAT continues to being proactive in building a

strong ecosystem for researchers and research
IAT Project in Sudan commercialization efforts. Among the deliberations
are tying the company’s projects and activities
more closely to MyRA scores hence contributing
INDUSTRY 4.0 – IAT’S PR OJECTS IN
to the University’s overall research KPI scores.
MALAYSIA AND ABROAD
For 2018, iAT was involved in 10% of total
consultancy project listed by the University. In fact
In 2018, iAT’s ICT services were aligned to
iAT’s involvement are higher than some individual
Industrial Revolution 4.0 (IR4.0) initiatives. Our
faculties. Also crucial to the make-up of the
project involvement in Sudan enables a major
ecosystem is MOTION-U, a MSC-recognized iAT-
industrial client to modernize its production plant,
KICT start-up incubator and accelerator program
integrate its enterprise resource planning (ERP)
which now host to 5 university start-ups. iAT
and customer interfacing by deploying the latest
is committed to further expanding the start-up
sensor, web and apps systems and practices.
program, generate new income stream from such
The Sudanese heavy industry sector is committed
programme and further enhance IIUM’s reputation
to further introduce IR4.0 initiatives such as Big
as centre of excellence for entrepreneurship and
Data and Blockchain into its business activities
emerging technopreneurs.
and iAT, in partnership with the various expertise
and domains of the University are ready with
practical applications.
Annual Report 2018
Consultancies &
Services Sector
IIUM CORPORATE MANAGEMENT SDN BHD
Preferred Corporate Services Partner
Attentive. Responsive. Efficient.

That’s Us
llUM Corporate Management Sdn Bhd
(iCMSB) was incorporated in year 2011 and
is a wholly-owned subsidiary of llUM Holdings
Sdn Bhd. Our dedicated company secretary is
a qualified company secretary who has 20 years
of experience in the field and holds master’s
degree in International Business from University of
East London. She is also a registered Company
Secretary with the Companies Commission of
Malaysia.
Corporate Secretarial Department with Ustazah Sharifah Khasif
We provide advisory and company secretarial

services to the entire IIUM Holdings group of RANGE OF SERVICES
companies as well as to other local and foreign-
owned companies in Malaysia. Our client base is Our Company provides full range of services to
involved in a wide spectrum of business activities clients who need assistance to comply with the
in Malaysia. requirements of the Malaysian Companies Act 2016,
which among others include but not limited to:
Services
• Incorporation of company or company limited
by guarantee
• Attending and recording minutes of board and
shareholders’ meetings
• Advising/updating clients on compliance with
the Companies Act, 2016
Directors Training Programme Essential • Consultation on corporate procedures and
legislation
• Provision of a registered office address
• Corporate advisory
• Tax Exemption registration for companies
incorporated under Section 45 of the
Companies Act 2016
• Ministry of Finance registration
• Registration of Business License under Local
Authorities (DBKL, MPAJ, etc.)
Strategic Business Plan Training Programme
Annual Report 2018
Consultancies &
Services Sector
IIUM Shariah Advisory Services Sdn Bhd
Networking Trip And Industry Talk Session on Islamic

Appointed as Programme Delivery Partner by Halal Fintech Innovations, Hong Kong (Hosted By Hong Kong
International Selangor Treasury Market Association)
IIUM Shariah Advisory Services Sdn Bhd

(iSAS) is a wholly owned subsidiary of IIUM
Holdings. iSAS is providing Consultancy &
Advisory services and training mainly in the areas
of Islamic Banking and Finance. The company
sources its experts from the International Islamic
University Malaysia (IIUM), particularly from the
Institute of Islamic Banking and Finance (IIiBF),
Ahmad Ibrahim Kulliyyah of Laws, Kulliyyah of
Economics and Management Sciences and also
Kulliyyah of Islamic Revealed Knowledge and Training for Tadhamon International Islamic Bank (Yemen)
Human Sciences. In addition, the company also
sources for experts from the industry mainly
among the bankers and legal practitioners.
Most of these experts are Shariah Advisors to

Islamic Financial institutions. Many of them are
highly recognized and sits in the Shariah Advisory
Council of the Central Bank of Malaysia and the
Securities Commission of Malaysia.
The company is now exploring to expand its

services into the fast growing Halal Industry Training on Halal Ecosystem in Malaysia to Research
Enterprise (IIUM Advanced Technology Sdn Bhd)
collaborating with the Institute of Halal Research
and Training (INHART), IIUM.
OUR SERVICES
• Advisory/Consultancy Services
• Coaching/Training of Trainers (TOT)/Clinics/In House training etc
• Capacity Building Programmes (certified by IIiBF, INHART & Kulliyyah of Languages and Management,
IIUM)
Annual Report 2018
Healthcare &
Other Sector
IIUM MEDICAL SPECIALIST CENTRE SDN BHD
Orthopaedics, ENT, Surgery and

Anaesthesiology Seminar
IIUM Medical Specialist Centre Sdn Bhd right craniotomy with orbit zygomatic, osteotomy
(iMSC) is passionate about patient care and and excision of tumor and posterior spinal
committed towards offering sub specialization instrumentation and fusion (PSIF) and laminectomy.
medical care to patient. We are the only medical Our surrounding community continues to generously
centre that offers subspecialized medical care in support our sub specialization medical care thus
Pahang. allowing us to move forward providing our best
care to the patient.
iMSC as a full-fledged private medical centre
provides medical care that ranges from iMSC also has moved a step forward in providing
Orthopedics, Surgery, Anesthesiology, Obstetrics medical information by organizing Orthopedics,
and Gynecology, Internal Medicine, Pediatrics, ENT, Surgery and Anesthesiology Seminar in the
ENT, Psychiatry, Radiology and Ophthalmology year 2018 amongst the General Practitioners
disciplines. and we have received participations from all over
Peninsular Malaysia with more than 100 participants
For year 2018, iMSC has received more than 1,000 attended our seminar. We will continue to organize
patients admitted into our medical centre and we Healthcare related seminars in the future for the
have received more than 7,000 outpatients that have benefit and enhancement of medical knowledge
sought treatment at our multi-disciplinary clinics. More for the Medical Practitioner and especially to the
than 1,300 patients have sought treatment at our people of Kuantan as part of an effort to promote
Accident and Emergency and a total of 23 deliveries our medical centre.
have been conducted since we commenced our
delivery services in September 2018.
Our consultants and operation theatre teams have

also managed to conduct high risk cases such as
Annual Report 2018
Healthcare &
Other Sector
IKOP SDN BHD
IKOP Sdn Bhd (IKOP) is a GMP-certified as eleven (11) local universities had entrusted
healthcare manufacturer committed towards IKOP to train their pharmacy students throughout
providing halal-certified products. IKOP is the first the year of 2018.
pharmaceutical manufacturer in Malaysia located
within a university surrounding i.e the International Let us pray that IKOP will continue to prosper in
Islamic University Malaysia (IIUM), Kuantan Campus. its endeavour to manufacture the halalan toyyiban
The uniqueness of IKOP lay in its hybrid concept healthcare products and provide a quality human
that foster the lecturers of Kulliyyah of Pharmacy, capital development.
IIUM to practise as industrial practitioners within
the scope of pharmaceutical GMP. Apart from the PERFORMANCE PLOTS
manufacturing of halalan toyyiban pharmaceuticals,
the mission of IKOP is also to become one stop REVENUE
centre for research and training.
1,600,000
1,400,000
Throughout 2018, I KOP has Alhamdulillah
1,200,000
successfully fulfil and deliver on-time the supply 1,000,000
of iGESIC to Pharmaniaga. Proudly for this great 800,000
performance, Pharmaniaga has granted IKOP the 600,000

400,000
100% score for QVEMP (Quality Vendor Excellent 200,000
Monitoring Program) throughout 2018.
2015 2016 2017 2018
In the field of training, two (2) universities from

INDUSTRIAL TRAINEES
Indonesia namely Universiti Wahid Hashim
(Unwahas) and Universiti Muhammadiah as well
CEO and the Team with Product of IHAND & IGESIC

Number of students for industrial
Training 2018
2018
2017
2016
2015
50 100 150 200 250 300 350 400

First Product Delivery to Pharmaniaga
Annual Report 2018
Healthcare &
Other Sector
IIUM PROPERTIES SDN BHD
Established in 2001, IIUM Properties Sdn Bhd The strategic intent and direction is to monetize
(iProperties) since then has built its reputation in the potential of IIUM land bank as a master
property business, particularly in construction, and developer to enable generation of recurring
project management. revenue to IIUM. For that, iProperties is planning
for catalytic development via smart partnership,
With strong foundation built from construction and strategic collaboration with the industrial
and project management, iProperties has been players in bringing economic drivers for the
entrusted by the International Islamic University township growth development.
Malaysia (IIUM) to develop some of its land bank
in Selangor and Pahang. In year 2018, iProperties has been appointed as
the main contractor by IIUM Holdings to develop
its RM33 million R&R Gombak project and the
construction is scheduled to be completed by end
2021. Moving forward, iProperties is also planning
to develop a campus worth RM140 million for the
International Islamic College in 2019/2020 and
is expected to be completed and operational by
2023. Others in the pipeline are the planning for
development of Hospital and Convention Centre
on the IIUM Gombak Campus land.
Proposed R&R Gombak
Proposed International Islamic College (IIC) at South Zone

Annual Report 2018
Healthcare &
Other Sector
DAYA BERSIH SDN BHD
Daya Bersih Sdn Bhd (DBSB) which celebrated
its 14th anniversary of establishment in 2018, has
embarked on a remarkable journey during the
tough year of 2018. DBSB is establishing its
own branding beyond IIUM, focusing on shariah
compliance and green technology as its niche
As the leading provider of Integrated Facilities

Management Services (FMS), focusing on higher
learning institutions, DBSB has been entrusted
to undertake the operations and maintenance
functions of over 12-million square feet of build-up
areas and employing more than 2,000 workers in
various fields and expertise.
To maintain a leading position in the industry,

DBSB is certified with Quality Management
System (QM S) I S O 9 001:200 8 and M S
1900:2014 (QMS from Islamic Perspective in
Facilities Management Services). We distinguished
ourselves by offering quality and productivity in
our services, Shariah driven work principles and “Focusing on shariah
willingness to innovate. Our axiom is “To provide compliance and green
better Integrated Facilities Management Services technology as its
with the highest uphold work culture of the Islamic
Code of Ethics.”
niche”
Annual Report 2018
Healthcare &
Other Sector
DAYA BERSIH SDN BHD
We offer to our clients a unique single point Our Integrated FMS includes but not limited to;
contact which includes the traditional technical
and non-technical management tasks by using Services
technology enabled innovations so as to achieve
• Civil, Structural & Architectural
quality and productivity. We monitors the facilities
and work performance through a specially designed • H
eating, Ventilation and Air-Conditioning (HVAC)
System
Computerized Maintenance Management Services
(CMMS) that is accessible from any location, 24 • Electrical Distribution / Backup Power / Generator’s
hours a day. • Fire Detection & Fighting System
• Cleaning Services
The maintenance requirement, activities, schedules,
• Custodial & Landscape Services
histories and performance for all facilities are
contained within the CMMS. In addition, our • W
ater Reticulation System / Plumbing & Sewage
service delivery model is based on Service Level Systems
Agreement (SLA) and constantly measured by • Building Automation System (BAS)
the Key Performance Indicators (KPI). The scopes • Hostel Management
of services are customizable to fit better with • Event Facilitation
the client’s requirements. We offer high-quality
• Clinical and Scheduled Waste Management
services and cost-effective workflows through
seamless integration of work forces, processes
and systems.
Annual Report 2018
Photo Gallery
IIC CSR Program with IIC Bowling Tournament

SMK Dato’ Jaafar, Johor
ICM Usrah with Ustazah Sharifah Khasif
Jom Makan Buah!
DBSB Program Penyerahan Zakat Perniagaan – Ramadhan 1439H/2018M

Annual Report 2018
Photo Gallery
Ramadhan Tazkirah & IFTAR
IIUM No Single Use Plastic (Say No To Straw)
Recycle Bin & Buy-Back Centre
DBSB Bowling Tournament 2018 @ WangsaBowl

Annual Report 2018
Annual Report 2018
Financial
Statement
Corporate Information 54
Directors’ Report 55 - 58
Statement by Directors 59
Statutory Declaration 59
Independent Auditors’ Report to the Members 60 - 62
of IIUM Holdings Sdn Bhd
Statements of Financial Position 63 - 64
Statements of Profit or Loss and Other Comprehensive Income 65
Statements of Changes in Equity 66
Statements of Cash Flows 67 - 68
Notes to the Financial Statements 69 - 110
Annual Report 2018
CORPORATE
INFORMATION
DIRECTORS : TAN SRI DATO’ SRI DR. ABDUL AZIZ BIN ABDUL RAHMAN
: PROF EMERITUS TAN SRI DATO’ DZULKIFLI BIN ABDUL RAZAK
: DATO’ AHMAD ZAILAN BIN ASHAARI @ SHAARI
: DATO’ ROSINI BINTI ABD SAMAD
: DATO’ JAMALUDIN BIN HASSAN
: DATUK KHALILUR RAHMAN BIN EBRAHIM

SECRETARY : INONG PUTRI BINTI ABDULLAH (LS 0006938)

REGISTERED OFFICE : LEVEL 3, ADMINISTRATION BUILDING
AND PLACE OF CENTRAL COMPLEX
BUSINESS INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
JALAN GOMBAK
53100 KUALA LUMPUR

PRINCIPAL BANKER : BANK ISLAM MALAYSIA BERHAD

AUDITORS : IDRIS IBRAHIM & CO. (AF 1047)
Chartered Accountants (Malaysia)
Annual Report 2018
DIRECTORS’
REPORT
The Directors hereby submit their report together with the audited financial statements of the Group and of
the Company for the financial year ended 31 December 2018.
PRINCIPAL ACTIVITIES
The principal activity of the Company is investment holding company. The principal activities of the subsidiaries
are described in Note 8 in the financial statements. There have been no significant changes in the nature of
the activities of the Company and its subsidiaries during the current financial year.
RESULTS
GROUP COMPANY
RM RM
Profit for the financial year 3,250,665 5,075,779
DIVIDENDS
In respect of financial year ended 31 December 2018:
RM
Proposed a final single tier dividend of RM0.20 per share 1,000,000
The proposed final dividend is subject to approval by shareholders at the forthcoming Annual General
Meeting of the Company and has not been included as liability in the financial statements. Upon approval by
the shareholders, the cash dividend payment will be accounted for in equity as an appropriation of retained
earnings during the financial year ending 31 December 2019.
RESERVES AND PROVISIONS
There were no material transfers to and from reserves and provisions during the financial year except as
disclosed in the financial statements.
SHARES AND DEBENTURES
The Company did not issue any new shares or debentures during the financial year.
Annual Report 2018
DIRECTORS’
REPORT
DIRECTORS
The Directors who served since the date of the last report were as follows:
Tan Sri Dato’ Seri Utama Dr. Rais Yatim (Resigned w.e.f. 1 August 2018)
Tan Sri Dato’ Sri Dr. Abdul Aziz Bin Abdul Rahman
Prof. Dato’ Sri Dr. Zaleha Binti Kamarudin (Resigned w.e.f. 14 August 2018)
Dato’ Ahmad Zailan Bin Ashaari @ Shaari
Prof. Dato’ Sri Dr. Ashgar Ali Bin Ali Mohamed (Resigned w.e.f. 26 February 2019)
Dato’ Rosini Binti Abd Samad
Dato’ Jamaludin Bin Hassan
Datuk Khalilur Rahman Bin Ebrahim
Prof. Emeritus Tan Sri Dato’ Dzulkifli Bin Abdul Razak (Appointed w.e.f. 27 August 2018)
DIRECTORS’ BENEFITS
During and at the end of the financial year, no arrangements subsisted to which the Company is a party, with
the object or objects of enabling Directors of the Company to acquire benefits by means of the acquisition
of shares in, or debentures of, the Company or any other body corporate.
No Director has, since the end of the previous financial year, received or become entitled to receive a benefit
(other than a benefit included in the aggregate amount of emoluments received or due and receivable by
the Directors shown in the financial statements or the fixed salary of a full-time employee of the Company)
by reason of a contract made by the Company or a related corporation with the Director or with a firm of
which the Director is a member, or with a company in which the Director has a substantial financial interest.
DIRECTORS’ INTERESTS
None of the Directors in office at the end of the financial year had any interest in shares in the Company or
its related corporations during the financial year.
DIRECTORS’ REMUNERATIONS
The amounts of the remunerations of the Directors or past Directors of the Company comprising remunerations
received/receivable from the Company during the financial year are as follows:
2018
RM
Allowance 193,000
Honorarium 30,000
None of the Directors or past Directors of the Company have received any other benefits otherwise than in
cash from the Company during the financial year.
No payment has been paid to or payable to any third party in respect of the services provided to the
Company by the Directors or past Directors of the Company during the financial year.
Annual Report 2018
DIRECTORS’
REPORT
INDEMNIFYING DIRECTORS, OFFICERS AND AUDITORS
No indemnities have been given or insurance premiums paid, during or since the end of the year, for any
person who is or has been the director, officer or auditor of the Company.
OTHER STATUTORY INFORMATION
Before the financial statements of the Group and of the Company were prepared, the Directors took
reasonable steps:
(a) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making
of allowance for doubtful debts, and have satisfied themselves that all known bad debts have been
written off and that adequate allowance had been made for doubtful debts; and
(b) to ensure that any current assets, which were unlikely to be realised in the ordinary course of business
including the value of current assets as shown in the accounting records of the Group and of the
Company have been written down to an amount which they might be expected to realise.
As of the date of this report, the directors are not aware of any circumstances:
(a) which would render the amount written off for bad debts or the amount of the allowance for doubtful debts
inadequate to any substantial extent in the financial statements of the Group and of the Company; or
(b) which would render the values attributed to current assets in the financial statements of the Group and
of the Company misleading; or
(c)
which have arisen which would render adherence to the existing methods of valuation of assets or
liabilities of the Group and of the Company misleading or inappropriate; or
(d)
not otherwise dealt with in this report or in the financial statements which would render any amount
stated in the financial statements of the Group and of the Company misleading.
As of the date of this report, there does not exist:
(a)
any charge on the assets of the Group and of the Company which has arisen since the end of the
financial year which secures the liabilities of any other person, or
(b) any contingent liability of the Group and of the Company which has arisen since the end of the financial year.
No contingent or other liability has become enforceable, or is likely to become enforceable within the period of
twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially
affect the ability of the Group and of the Company to meet its obligations as and when they fall due.
In the opinion of the Directors:
(a) the results of the operations of the Group and of the Company for the financial year ended 31 December
2018 were not substantially affected by any item, transaction or event of a material and unusual nature; and
(b)
no item, transaction or event of a material and unusual nature has arisen in the interval between the
end of the financial year and the date of this report which is likely to affect substantially the results of
operations of the Group and of the Company for the financial year in which this report is made.
Annual Report 2018
DIRECTORS’
REPORT
HOLDING COMPANY
The Directors regard International Islamic University Malaysia (“IIUM”) as the holding company, a company
incorporated in Malaysia.
AUDITORS’ REMUNERATIONS
Total amounts paid to or receivable by the auditors as remunerations for their services as auditors are as
follows:
AUDITORS
The auditors, MESSRS IDRIS IBRAHIM & CO., have indicated their willingness to continue in the office.
Signed on behalf of the Board in accordance with the resolution of the Directors:
2018
RM
Statutory audit 28,000
TAN SRI DATO’ SRI DR. ABDUL AZIZ PROF EMERITUS TAN SRI DATO’
BIN ABDUL RAHMAN DZULKIFLI BIN ABDUL RAZAK
Kuala Lumpur
Dated:
Annual Report 2018
STATEMENT BY DIRECTORS
SECTION 251(2) OF THE COMPANIES ACT 2016
The Directors of IIUM HOLDINGS Sdn Bhd, state that, in their opinion, the financial statements of the
Group and of the Company set out on pages 10 to 66 are drawn up in accordance with Malaysian Financial
Reporting Standards and requirements of the Companies Act, 2016 in Malaysia so as to give a true and fair
view of the financial position of the Group and of the Company as at 31 December 2018 and of its financial
performance and cash flows for the financial year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors,
TAN SRI DATO’ SRI DR. ABDUL AZIZ PROF EMERITUS TAN SRI DATO’
BIN ABDUL RAHMAN DZULKIFLI BIN ABDUL RAZAK
Kuala Lumpur
Dated:
STATUTORY DECLARATION
SECTION 251(1)(b) OF THE COMPANIES ACT 2016
I, DATO’ HAJI NAHARUDIN BIN ALI, the officer primarily responsible for the financial management of IIUM
HOLDINGS Sdn Bhd do solemnly and sincerely declare that the financial statements as set out on
pages 10 to 66 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 DATO’ HAJI NAHARUDIN }
BIN ALI at Kuala Lumpur in the }
Federal Territory on }
} DATO’ HAJI NAHARUDIN BIN ALI
Before me,
Commissioner for Oaths

Kuala Lumpur
Annual Report 2018
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

OF IIUM HOLDINGS SDN BHD
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of IIUM Holdings Sdn Bhd, which comprise the statements of
financial position as at 31 December 2018 of the Group and of the Company, and the statements of profit
or loss and other comprehensive income, statements of changes in equity and statements of cash flows of
the Group and of the Company for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies as set out on pages 10 to 66.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the
Group and of the Company as at 31 December 2018, and of their financial performance and their cash flows
for the year then ended in accordance with Malaysian Financial Reporting Standard and the requirements of
the Companies Act, 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional
Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International
Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and
we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
Information Other than the Financial Statements and Auditors’ Report Thereon
The Directors of the Company are responsible for the other information. The other information comprises the
Directors’ Report but does not include the financial statements of the Group and of the Company and our
auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the Directors’
Report and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility
is to read the Directors’ Report and, in doing so, consider whether the Directors’ Report is materially
inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the Directors’
Report, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements of the Group and
of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards
and the requirements of the Companies Act, 2016 in Malaysia. The Directors are also responsible for such
internal control as the Directors determine is necessary to enable the preparation of financial statements of
the Group and of the Company that are free from material misstatement, whether due to fraud or error.
Annual Report 2018

In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing
the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the Directors have either intend to liquidate
the Group or the Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and
of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and
International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International
Standards on Auditing, we exercise professional judgement and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the Group and of
the Company, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness the Group’s and the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt of the Group’s or the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditors’ report to the related disclosures in the financial statements of the Group and of the Company
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause
the Group or the Company to cease to continue as going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of
the Company, including the disclosures, and whether the financial statements of the Group and of the
Company represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial statements of the Group.
We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Annual Report 2018

Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 2016 in Malaysia, we report that the subsidiaries
of which we have acted as auditors, are disclosed in Note 8 to the financial statements.
Other Matters
1) As stated in Note 2 to the financial statements, IIUM Holdings Sdn Bhd adopted Malaysian Financial
Reporting Standards on 1 January 2018 with a transition date of 1 January 2017. These standards were
applied retrospectively by the Directors to the comparative information in these financial statements,
including the statement of financial position of the Company as at 31 December 2017 and 1 January
2017, and the statement of profit or loss and other comprehensive income, statement of changes in
equity and statement of cash flows of the Company for the year ended 31 December 2017 and related
disclosures. We were not engaged to report on the restated comparative information and it is unaudited.
Our responsibilities as part of our audit of the financial statements of the Company for the year ended
31 December 2018, in these circumstances, included obtaining sufficient appropriate audit evidence
that the opening balances as at 1 January 2018 do not contain misstatements that materially affect the
financial position as at 31 December 2018 and the financial performance and cash flows for the year
then ended.
2) This report is made solely to the members of the Company, as a body, in accordance with Section 266
of the Companies Act, 2016 in Malaysia and for no other purpose. We do not assume responsibility to
any other person for the content of this report.
IDRIS IBRAHIM & CO. WAN IDRIS WAN IBRAHIM

AF: 1047 01770/05/2020 J
Chartered Accountants Partner of the Firm
Kuala Lumpur
Date:
Annual Report 2018
STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2018
GROUP 31 December 31 December 1 January
2018 2017 2017
Note RM RM RM
NON-CURRENT ASSETS
Property, plant and equipment 5 43,546,502 45,866,849 36,720,848
Investment properties 6 88,127,924 89,846,987 1,800,000
Work in progress - - 55,740,106
Intangible assets 7 409,166 - -
Deferred tax assets 9 50,394 50,394 50,394
Total non-current assets 132,133,986 135,764,230 94,311,348
CURRENT ASSETS
Inventories 10 1,283,764 665,544 387,375
Property development cost 11 - - 7,133,385
Contract assets 12 - 125,044 -
Contract costs 12 974,181 540,057 -
Trade and other receivables 13 42,907,089 41,317,599 59,800,584
Tax recoverable 5,284,928 3,188,158 1,356,553
Investment in unit trust 14 200,000 100,000 -
Cash and bank balances 15 26,018,974 28,862,491 16,214,122
Total current assets 76,668,936 74,798,893 84,892,019
TOTAL ASSETS 208,802,922 210,563,123 179,203,367
CAPITAL AND RESERVES

Share capital 16 5,000,000 5,000,000 5,000,000
Retained profits 28,877,029 25,626,364 23,745,788
Total equity 33,877,029 30,626,364 28,745,788
NON-CURRENT LIABILITIES
Financing - i 17 85,325,537 91,362,674 57,120,796
Hire-purchase and lease financing - i 18 267,185 601,530 647,889
Deferred tax liabilities 9 4,966,844 5,128,629 4,213,051
Total non-current liabilities 90,559,566 97,092,833 61,981,736
CURRENT LIABILITIES
Financing - i 17 7,004,984 3,681,218 2,035,676
Hire-purchase and lease financing - i 18 426,557 346,671 359,263
Contract liabilities 12 6,752 - -
Trade and other payables 19 76,690,318 78,815,091 86,080,904
Tax payable 237,716 946 -
Total current liabilities 84,366,327 82,843,926 88,475,843
TOTAL EQUITY AND LIABILITIES 208,802,922 210,563,123 179,203,367

The notes to the financial statements from an integral part of the financial statements.
Auditor’s report on page 6 to 9.
Annual Report 2018
STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2018
COMPANY 31 December 31 December 1 January
2018 2017 2017
Note RM RM RM
NON-CURRENT ASSETS
Plant and equipment 5 15,440 37,704 72,563
Investment properties 6 77,377,469 78,885,456 -
Work in progress - - 45,856,498
Investment in subsidiaries 8 17,494,995 15,994,995 12,094,993
Total non-current assets 94,887,904 94,918,155 58,024,054
CURRENT ASSETS
Trade and other receivables 13 19,911,597 16,467,195 16,541,643
Tax recoverable 225,125 45,393 85,393
Cash and bank balances 15 2,639,839 1,768,279 682,625
Total current assets 22,776,561 18,280,867 17,309,661
TOTAL ASSETS 117,664,465 113,199,022 75,333,715
CAPITAL AND RESERVES

Share capital 16 5,000,000 5,000,000 5,000,000
Retained profits/(losses) 4,567,377 (508,402) (3,028,198)
Total equity 9,567,377 4,491,598 1,971,802
NON-CURRENT LIABILITY
Financing - i 17 64,889,800 69,692,348 37,346,778
Total non-current liability 64,889,800 69,692,348 37,346,778
CURRENT LIABILITIES
Financing - i 17 3,000,546 507,652 -
Trade and other payables 19 39,987,558 38,507,424 36,015,135
Tax payable 219,184 - -
Total current liabilities 43,207,288 39,015,076 36,015,135
TOTAL EQUITY AND LIABILITIES 117,664,465 113,199,022 75,333,715
Annual Report 2018
STATEMENT OF Profit or Lost and other comprehensive income

for the financial year ended 31 DECEMBER 2018
GROUP COMPANY
2018 2017 2018 2017
Note RM RM RM RM
Revenue 20 141,870,928 142,296,559 20,086,150 12,949,955
Cost of sales (96,754,014) (99,603,983) (6,881,082) (5,277,718)
Gross profit 45,116,914 42,692,576 13,205,068 7,672,237
Other income 3,232,623 3,098,020 4,306 56,500
Administrative expenses (38,364,604) (35,296,961) (4,159,106) (2,248,538)
Finance costs (4,719,083) (3,465,988) (3,455,037) (2,691,788)
Profit before tax 21 5,265,850 7,027,647 5,595,231 2,788,411
Tax expense 22 (2,015,185) (5,147,071) (519,452) (268,615)
Profit for the financial year 3,250,665 1,880,576 5,075,779 2,519,796
Other comprehensive income,

net of tax - - - -
Total comprehensive income

for the financial year 3,250,665 1,880,576 5,075,779 2,519,796
Annual Report 2018
STATEMENT OF Changes in equity

Share Retained
capital profits Total
RM RM RM
GROUP
At 1 January 2017 5,000,000 23,745,788 28,745,788
Profit for the financial year - 1,880,576 1,880,576
At 31 December 2017 5,000,000 25,626,364 30,626,364
At 31 December 2018 5,000,000 28,877,029 33,877,029
Share Retained
capital profit/(loss) Total
RM RM RM
COMPANY
At 1 January 2017 5,000,000 (3,028,198) 1,971,802
At 31 December 2017 5,000,000 (508,402) 4,491,598
At 31 December 2018 5,000,000 4,567,377 9,567,377
Annual Report 2018
STATEMENT OF Cash Flows

GROUP COMPANY
2018 2017 2018 2017
Note RM RM RM RM
Cash flows from operating

activities
Profit before tax 5,265,850 7,027,647 5,595,231 2,788,411
Adjustments for item not
involving the movement of
funds:
Depreciation of property, plant
and equipment 4,628,781 4,784,245 27,906 56,489
Depreciation of investment
properties 1,719,063 40,000 1,507,987 -
Term charges 4,719,083 3,465,988 3,455,037 2,691,788
Profit received from
Islamic banking (379,734) (416,604) (3,997) (7,578)
Allowance for impairment 1,017,341 2,404,479 - -
Bad debt written off 35,483 - - -
Waived of other payables (36,730) - - -
Gain on disposal of property,
plant and equipment - (20,089) - -
Written off property, plant
and equipment 27 - - -
Writeback allowance
for impairment (1,441,119) (518,926) - -
Operating profit before
working capital changes 15,528,045 16,766,740 10,582,164 5,529,110
(Increase)/Decrease in:
Inventories (618,220) (278,169) - -
Contract assets/liabilities 131,796 - - -
Trade and other receivables (3,067,981) 16,472,388 (3,444,402) 74,448
(Decrease)/Increase in:
Trade and other payables (2,124,773) (7,265,814) 1,480,134 2,492,289
Cash generated from
operations 9,848,867 25,695,145 8,617,896 8,095,847
Tax refund 54,504 187,839 - 40,000
Tax paid (4,226,952) (6,249,991) (480,000) (268,615)
Balance brought forward 5,676,419 19,632,993 8,137,896 7,867,232
Annual Report 2018
STATEMENT OF Cash Flows

GROUP COMPANY
2018 2017 2018 2017
Note RM RM RM RM
Cash flows from operating

activities (Continued)
Balance carried forward 5,676,419 19,632,993 8,137,896 7,867,232
Profit received from
Islamic banking 379,734 416,604 3,997 7,578
Term charges (4,719,083) (3,465,988) (3,455,037) (2,691,788)
Net cash generated from
operating activities 1,337,070 16,583,609 4,686,856 5,183,022
Cash flows from

investing activities
Purchase of property, plant
and equipment (2,328,971) (3,182,034) (5,642) (21,630)
Additional of intangible assets (387,666) (33,028,958) - (33,028,958)
Additional of contract costs (434,124) (540,057) - -
Investment in subsidiary
companies - - (1,500,000) (3,900,002)
Net cash used in
investing activities (3,150,761) (36,751,049) (1,505,642) (36,950,590)
Cash flows from

financing activities
(Repayment)/Drawdown
of financing - i (2,713,371) 31,528,623 (2,309,654) 32,853,222
Repayment of hire purchase
and lease payable - i (254,459) (77,732) - -
Placement of investment in
unit trust (100,000) (100,000) - -
Withdrawal of fixed deposit - (41,960) - -
Net cash (used in) / generated
from financing activities (3,067,830) 31,308,931 (2,309,654) 32,853,222
Net (decrease) / increase in

cash and cash equivalents (4,881,521) 11,141,491 871,560 1,085,654
Cash and cash equivalents:
- At beginning of the year 24,999,397 13,857,906 1,768,279 682,625
- At end of the year 15 20,117,876 24,999,397 2,639,839 1,768,279
Annual Report 2018
Notes to the financial Statements

1. GENERAL INFORMATION

The Company is a private limited liability company, incorporated and domiciled in Malaysia.
The registered office and place of business of the Company is located at Level 3, Administration
Building, Central Complex, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur.
The principal activity of the Company is investment holding company. The principal activities of the
subsidiaries are described in Note 8 to the financial statements. There have been no significant changes
in the nature of the activities during in the financial year.
The holding company is International Islamic University Malaysia (“IIUM”), a company incorporated in
Malaysia.
The financial statements of the Group and of the Company are presented in Ringgit Malaysia (“RM”).
The financial statements were authorised for issue by the Board of Directors in accordance with
resolution of the Directors dated 10 May 2018.
2. BASIS OF PREPARATION
The financial statements of the Group and of the Company have been prepared in accordance with the
Malaysian Financial Reporting Standards (“MFRS”) and the provisions of the Companies Act, 2016.
The financial statements of the Group and of the Company for the financial year ended 31 December
2018 are the first set of financial statements prepared in accordance with the MFRS, including MFRS
1-First-time Adoption of Malaysian Financial Reporting Standards.
In the previous years, the financial statements of the Group and of the Company were prepared in
accordance with Malaysian Private Entities Reporting Standard (“MPERSs”) in Malaysia. The financial
impacts on transition to MFRSs are disclosed in Note 26.
The preparation of financial statements in conformity with MFRSs requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported
amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. The
areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
are significant to the financial statements are disclosed in Note 4.
Annual Report 2018

2. BASIS OF PREPARATION (Continued)
The following are accounting standards, amendments and interpretations of the MFRS framework that
have been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted
by the Group and the Company:
Title Effective Date

MFRS 16 Leases 1 January 2019
IC Interpretation 23, Uncertainty over Income Tax Treatments 1 January 2019
Amendments to MFRS 3 Business Combinations (Annual Improvements to 1 January 2019

MFRSStandards 2015 – 2017 Cycle)
Amendments to MFRS 9 Financial Instruments - Prepayment Features with 1 January 2019
Negative Compensation
Amendments to MFRS 11 Joint Arrangements (Annual Improvements to MFRS 1 January 2019
Standards 2015 – 2017 Cycle)
Amendments to MFRS 112 Income Taxes (Annual Improvements to MFRS 1 January 2019
Amendments to MFRS 119 Employee Benefits – Plan Amendment, Curtailment 1 January 2019
or Settlement
Amendments to MFRS 123 Borrowing Costs (Annual Improvements to MFRS 1 January 2019
Amendments to MFRS 128 Investments in Associates and Joint Ventures - Long- 1 January 2019
term Interests in Associates and Joint Ventures
MFRS 17 Insurance Contracts 1 January 2021
Amendments to MFRS 10 Consolidated Financial Statements Yet to be

confirmed
Amendments to MFRS 128 Investments in Associates and Joint Ventures – Sale Yet to be
or Contribution of Assets between an Investor and its Associate or Joint Venture confirmed
Annual Report 2018

3. SIGNIFICANT ACCOUNTING POLICIES
a) Basis of accounting
The financial statements have been prepared on the historical cost except as otherwise stated in
the financial statements.
b) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities, including special purpose entity, controlled by the Company. The
financial statements of subsidiaries are included in the consolidated financial statements from
the date that control commences until the date that control ceases.
Investments in subsidiaries are measured in the Company’s statement of financial position at

cost less any impairment losses. The cost of investment includes transaction costs.
(ii) Business combinations
Business combinations are accounted for by applying the purchase method from the acquisition
date, which is the date on which the Group obtains control of the acquiree. The cost of a
business combinations is the aggregate of:
(a) The fair values, at the date of exchange, of assets given, liabilities incurred or assumed,
and equity instruments issued by the acquirer, in exchange for control of the acquire; plus
(b) Any costs directly attributable to the business combination.
When the cost of the business combination is in excess of the Group’s interest in the net fair
value of the identifiable assets, liabilities and contingent liabilities recognised, the excess is
recognised as goodwill. When the excess is negative, a bargain purchase gain is recognised
immediately in profit or loss.
The non-controlling interest in the acquiree is measured at the proportionate share of the
acquiree’s identifiable net assets at the acquisition date.
(iii) Loss of control
Upon the loss of control of a subsidiary, the Group recognised the difference between the
proceeds from the disposal of the subsidiary and its carrying amount as of the date of disposal.
If the Group retains any interest in the former subsidiary, that investment is accounted for as
a financial asset from the date the entity ceases to be a subsidiary, provided that it does not
become an associate or a jointly controlled entity. The carrying amount of the investment at the
date that the entity ceases to be a subsidiary is regarded as the cost on initial measurement
of the financial asset.
Annual Report 2018

3. SIGNIFICANT ACCOUNTING POLICIES (Continued)
b) Basis of consolidation (Continued)
(iv) Non-controlling interest
Non-controlling interest at the end of reporting period, being the equity in a subsidiary not
attributable directly or indirectly to the equity holders of the Company, are presented in the
consolidated statement of financial position within equity, separately from equity attributable to
the owners of the Company. Non-controlling interests in the result of the Group is presented
in the consolidated statement of income and other comprehensive income as an allocation of
the profit or loss and the comprehensive income for the year between non-controlling interests
and owners of the Company.
Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling
interests even if doing so causes the non-controlling interests to have a deficit balance.
(v) Transactions eliminated on consolidation
Intra-group balances and transactions, including income expenses and dividends, are eliminated
in full in preparing the consolidated financial statements.
c) Property, plant and equipment

(i) Recognition and measurement
Property, plant and equipment are stated at cost less accumulated depreciation and less any
impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the assets and
any other costs directly attributable to bringing the asset to working condition of its intended
use, and the costs of dismantling and removing the items and restoring the site on which they
are located. The cost of self-constructed assets also includes the cost of materials and direct
labour. For qualifying assets, borrowing costs are capitalised in accordance with the accounting
policy on borrowing costs. Cost also may include transfers from equity of any gain or loss on
qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.
When significant parts of item of property, plant and equipment have different useful lives, they
are accounted for as separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined by
comparing the proceeds from disposal with the carrying amount of property, plant and equipment
and is recognised net within “other income” and “other expenses” respectively in profit or loss.
(ii) Subsequent cost
The cost of replacing a component of an item of property, plant and equipment is recognised
in the carrying amount of the item if it is probable that the future economic benefits embodied
within the component will flow to the Group and the Company, and its cost can be measured
reliably. The carrying amount of the replaced component is derecognised to profit or loss. The
costs of the day-to-day servicing of property, plant and equipment are recognised in profit or
loss as incurred.
Annual Report 2018

c) Property, plant and equipment (Continued)
(iii) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components
of individual assets are assessed, and if a component has a useful life that is different from
the remainder of that asset, then that component is depreciated separately.
Except for freehold land and asset in progress which are not depreciated, depreciation is
provided on a straight-line method over the estimated useful lives of the related assets at the
following rates:
Buildings 2%
Renovations 20%
Office equipment 15% - 33%
Plant and machinery 6.6% - 10%
Library books 20%
Motor vehicles 20% to 25%
Leasehold land Over lease period
Depreciation of an asset begins when it is ready for its intended use.
The residual value, useful life and depreciation method of the property, plant and equipment of
the Group and of the Company is reviewed, and adjusted prospectively if appropriate, if there
is an indication of a change since the last reporting date.
d) Investment properties
Investment properties are properties (land or a building, or part of a building, or both of land and
building, including self-constructed investment property) which are held to earn rentals or for capital
appreciation or for both and are not used in the production or supply of goods or services or for
administrative purposes, or sale in the ordinary course of business.
Investment properties are initially measured at cost. The cost of investment property comprises its
purchase price and any directly attributable expenditure such as legal and brokerage fees, property
transfer taxes and other transaction costs, or present value of all future payments.
After initial recognition, investment properties are stated at cost less accumulated depreciation and
accumulated impairment losses, as the fair value of the building cannot be reliably determined without
undue cost and effort due to a lack of reliable evidence about comparable market transactions.
Depreciation of the investment property of the Group and of the Company is calculated using the
straight-line method to allocate the cost less its residual value over its estimated useful life of 50
years.
The residual value, useful life and depreciation method of the investment property of the Group and
of the Company is reviewed, and adjusted prospectively if appropriate, if there is an indication of a
change since the last reporting date.
Annual Report 2018

e) Intangible assets
(i) Research and development
Expenditure on research activities, undertaken with the prospect of gaining new scientific or
technical knowledge and understanding, is recognised in profit or loss as incurred.
Expenditure on development activities, whereby the application of research findings are

applied to a plan or design for the production of new or substantially improved products and
processes, is capitalised only if development costs can be measured reliably, the product or
process is technically and commercially feasible, future economic benefits are probable and the
Group and the Company intends to and has sufficient resources to complete development and
to use or sell the asset.
(ii)
Amortisation
Intangible assets with indefinite useful lives are not amortised but are tested for impairment
annually and whenever there is an indication that they may be impaired.
Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised
in profit or loss on a straight-line basis over the estimated useful lives of intangible assets.
The estimated useful lives for the current and comparative periods are as follows:
• Capitalised development costs 1-3 years
Amortisation methods, useful lives and residual values are reviewed at the end of each
reporting period and adjusted, if appropriate.
f) Leases and hire purchase
(i) Finance leases and hire purchase
Assets acquired under finance leases and hire purchase which transfer substantially all the risks
and rewards of ownership to the Group and the Company are recognised initially at amounts
equal to the fair value of the leased assets or, if lower, the present value of minimum lease
payments, each determined at the inception of the lease. The discount rate used in calculating
the present value of the minimum lease payments is the interest rate implicit in the leases, if
this is practicable to determine; if not, the incremental borrowing rate of the Group and of
the Company is used. Any initial direct costs incurred by the Group and the Company are
added to the amount recognised as an asset. The assets are capitalised as property, plant and
equipment and the corresponding liability are treated as finance lease obligations. The property,
plant and equipment capitalised are depreciated over the shorter of the lease term and its
useful life.
The minimum lease payments are apportioned between finance charges and the reduction of
the outstanding liability using the effective interest method. The finance charges are recognised
in profit or loss over the period of the lease term so as to produce a constant periodic rate
of interest on the remaining lease and hire purchase liabilities.
Annual Report 2018

f) Leases and hire purchase( Continued)
(ii) Operating leases
A lease is classified as an operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership.
Lease payments under operating leases are recognised as an expense on a straight-line basis
over the lease term.
g) Borrowing costs
Borrowing costs that are not directly attributable to the acquisition, construction or production of a
qualifying asset are recognised in profit or loss using the effective interest method.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying

assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are capitalised as part of the cost of those assets.
The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when
expenditure for the asset is being incurred, borrowing costs are being incurred and activities that
are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of
borrowing costs is suspended or ceases when substantially all the activities necessary to prepare
the qualifying asset for its intended use or sale are interrupted or completed.
Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
h) Inventories
Inventories are measured at the lower of cost and estimated selling price less costs to complete
and sell.
The cost of inventories is calculated using the weighted average method, and includes expenditures
incurred in acquiring the inventories, production or conversion costs and other costs incurred in
bringing them to their existing location and condition. In the case of work-in-progress and finished
goods, cost includes an appropriate share of production overheads based on normal operating
capacity.
At each reporting date, the Group assesses whether any inventories are impaired by comparing the
carrying amount of each item of inventory or group of similar items with its selling price less costs
to complete and sell. If an item of inventory or group of similar items is impaired, the Group reduces
the carrying amount of the inventory or the group of similar items to its selling price less costs to
complete and sell. That reduction is an impairment loss and it is recognised immediately in profit or
loss.
If it is impracticable to determine the selling price less costs to complete and sell for inventories
item by item, items of inventory relating to the same product line that have similar purposes or end
uses and are produced and marketed in the same geographical area are grouped together for the
purpose of assessing impairment of the inventory.
Annual Report 2018

i) Contract asset/contract Iiability
A contract asset is recognised when the Group’s right to consideration is conditional on something
other than the passage of time. A contract asset is subject to impairment in accordance to MFRS
9, Financial Instruments (see Note 3(k)(i)).
A contract Iiability is stated at cost and represents the obligation of the Group to transfer goods
or services to a customer for which consideration has been received (or the amount is due) from
the customers.
j) Contract cost
(i) Incremental cost of obtaining a contract
The Group recognises incremental costs of obtaining contracts when the Group expects to
recover these costs.
(ii) Costs to fulfill a contract
The Group recognises a contract cost that relate directly to a contract or to an anticipated
contract as an asset when the cost generates or enhances resources of the Group, will be
used in satisfying performance obligations in the future and it is expected to be recovered.
These contract costs are initially measured at cost and amortised on a systematic basis that is
consistent, with the pattern of revenue recognition to which the asset relates. An impairment
Ioss is recognised in the profit and Ioss when the carrying amount of the contract cost exceeds
the expected revenue Iess expected cost that will be incurred. Where the impairment condition
no Ionger exists or has improved, the impairment Ioss is reversed to the extent that the carrying
amount of the contract cost does not exceed the amount that would have been recognised
had there been no impairment Ioss recognised previously.
k) Financial Instruments
(i) Recognition and initial measurement
A financial asset or a financial Iiability is recognised in the statement of financial position when,
and only when, the Group and the Company becomes a party to the contractual provisions of
the instrument.
A financial asset (unless it is a trade receivable without significant financing component)

or a financial liability is initially measured at fair value plus or minus, for an item not at fair
value through profit or loss, transaction costs that are directly attributable to its acquisition or
issuance. A trade receivable without a significant financing component is initially measured at
the transaction price.
An embedded derivative is recognised separately from the host contract where the host
contract is not a financial asset, and accounted for separately if, and only if, the derivative is
not closely related to the economic characteristics and risks of the host contract and the host
contract is not measured at fair value through profit or loss. The host contract, in the event
an embedded derivative is recognised separately, is accounted for in accordance with policy
applicable to the nature of the host contract.
Annual Report 2018

k) Financial Instruments (Continued)
(ii) Financial instrument categories and subsequent measurement
The Group and the Company categorised financial instruments as follows:
Financial Assets
Categories of financial assets are determined on initial recognition and are not reclassified
subsequent to their initial recognition unless the Group and the Company changes its business
model for managing financial assets in which case aII affected financial assets are reclassified
on the first day of the first reporting period following the change of the business model.
a) Amortised cost
Amortised cost category comprises financial assets that are held within a business model
whose objective is to hold assets to collect contractual cash flows and its contractual
terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. The financial assets are not designated as
fair value through profit or Ioss. Subsequent to initial recognition, these financial assets
are measured at amortised cost using the effective interest method. The amortised cost
is reduced by impairment Iosses. Interest income, foreign exchange gains and Iosses
and impairment are recognised in profit or Ioss. Any gain or Ioss on derecognition is
recognised in profit or Ioss.
Interest income is recognised by applying effective interest rate to the gross carrying
amount except for credit impaired financial assets (see Note 3(l)(i)) where the effective
interest rate is applied to the amortised cost.
b) Fair value through other comprehensive income
(i)
Debt investments
Fair value through other comprehensive income category comprises debt investment
where it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling the debt investment, and its contractual
terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
The debt investment is not designated as at fair value through profit or Ioss. Interest
income calculated using the effective interest method, foreign exchange gains and
Iosses and impairment are recognised in profit or Ioss. Other net gains and Iosses
are recognised in other comprehensive income. On derecognition, gains and Iosses
accumulated in other comprehensive income are reclassified to profit or Ioss.
Interest income is recognised by applying effective interest rate to the gross carrying
amount except for credit impaired financial assets (see Note 3(l)(i)) where the
effective interest rate is applied to the amortised cost.

Annual Report 2018

(ii) Financial instrument categories and subsequent measurement (Continued)
Financial Assets (Continued)
b) Fair value through other comprehensive income (Continued)
(ii)
Equity investments
This category comprises investment in equity that is not held for trading, and the
Group irrevocably elect to present subsequent changes in the investment’s fair value
in other comprehensive income. This election is made on an investment-by investment
basis. Dividends are recognised as income in profit or Ioss unless the dividend clearly
represents a recovery of part of the cost of investment. Other net gains and Iosses
are recognised in other comprehensive income. On derecognition, gains and Iosses
accumulated in other comprehensive income are not reclassified to profit or Ioss.
c) Fair value through profit or loss
AII financial assets not measured at amortised cost or fair value through other comprehensive
income as described above are measured at fair value through profit or Ioss. This includes
derivative financial assets (except for a derivative that is a designated and effective hedging
instrument). On initial recognition, the Group and the Company may irrevocably designate
a financial asset that otherwise meets the requirements to be measured at amortised cost
or at fair value through other comprehensive income as at fair value through profit or Ioss if
doing so eliminates or significantly reduces an accounting mismatch that would otherwise
arise.
Financial assets categorised as fair value through profit or Ioss are subsequently measured
at their fair value. Net gains or Iosses, including any interest or dividend income, are
recognised in the profit or Ioss.
All financial assets, except for those measured at fair value through profit or loss and equity
investments measured at fair value through other comprehensive income, are subject to
impairment assessment (see Note 3(l)(i)).
Financial Liabilities
The categories of financial Iiabilities at initial recognition are as follows:
a) Fair value through profit or loss
Fair value through profit or Ioss category comprises financial Iiabilities that are derivatives
(except for a derivative that is a financial guarantee contract or a designated and effective
hedging instrument), contingent consideration in a business combination and financial
Iiabilities that are specifically designated into this category upon initial recognition.
Annual Report 2018

(ii) Financial instrument categories and subsequent measurement (Continued)
Financial Liabilities (Continued)
a) Fair value through profit or loss (Continued)
On initial recognition, the Group and the Company may irrevocably designate a financial
Iiability that otherwise meets the requirements to be measured at amortised cost as at fair
value through profit or Ioss:
(a)
if doing so eliminates or significantly reduces an accounting mismatch that would
otherwise arise;
(b)
a group of financial Iiabilities or assets and financial Iiabilities is managed and its
performance is evaluated on a fair value basis, in accordance with a documented
risk management or investment strategy, and information about the group is provided
internally on that basis to the Group’s key management personnel; or
(c)
if a contract contains one or more embedded derivatives and the host is not a
financial asset in the scope of MFRS 9, where the embedded derivative significantly
modifies the cash flows and separation is not prohibited.
Financial Iiabilities categorised as fair value through profit or Ioss are subsequently
measured at their fair value with gains or Iosses, including any interest expense are
recognised in the profit or Ioss.
For financial Iiabilities where it is designated as fair value through profit or Ioss upon initial
recognition, the Group and the Company recognise the amount of change in fair value of
the financial Iiability that is attributable to change in credit risk in the other comprehensive
income and remaining amount of the change in fair value in the profit or Ioss, unless the
treatment of the effects of changes in the Iiability’s credit risk would create or enlarge an
accounting mismatch.
b) Amortised cost
Other financial Iiabilities not categorised as fair value through profit or Ioss are subsequently
measured at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and Iosses are recognised in the profit or
Ioss. Any gains or Iosses on derecognition are also recognised in the profit or Ioss.
(iii) Derecognition
A financial asset or part of it is derecognised when, and only when, the contractual rights
to the cash flows from the financial asset expire or transferred, or control of the asset is not
retained or substantially aII of the risks and rewards of ownership of the financial asset are
transferred to another party. On derecognition of a financial asset, the difference between the
carrying amount of the financial asset and the sum of consideration received (including any new
asset obtained Iess any new Iiability assumed) is recognised in profit or Ioss.

Annual Report 2018

(iii) Derecognition (Continued)
A financial Iiability or a part of it is derecognised when, and only when, the obligation specified
in the contract is discharged, cancelled or expires. A financial Iiability is also derecognised
when its terms are modified and the cash flows of the modified Iiability are substantially
different, in which case, a new financial Iiability based on modified terms is recognised at fair
value. On derecognition of a financial Iiability, the difference between the carrying amount of
the financial liability extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or Iiabilities assumed, is recognised in profit or Ioss.
(iv) Offsetting
Financial assets and financial Iiabilities are offset and the net amount presented in the statement
of financial position when, and only when, the Group and the Company currently has a Iegally
enforceable right to set off the amounts and it intends either to settle them on a net basis or
to realise the asset and Iiability simultaneously.
l) Impairment
(i) Financial assets
All financial assets (except for financial assets categorised as fair value through profit or loss
and investment in associate) are assessed at each reporting date whether there is an objective
evidence of impairment as a result of one or more events having an impact on the estimated
future cash flows of the asset. Losses expected as a result of future events, no matter how
likely, are not recognised. For an investment in an equity instrument, a significant or prolonged
decline in the fair value below its cost is an objective of impairment. If any such objective
evidence exists, then the impairment loss of the financial asset is estimated.
An impairment loss in respect of loans and receivables and held-to-maturity investments is
recognised in profit or loss and is measured as the difference between the asset’s original
effective interest rate. The carrying amount of the assets is reduced through the use of an
allowance account.
An impairment loss in respect of available-for-sale financial assets is recognised in profit

or loss and is measured as the difference between the asset’s acquisition cost (net of a
principal repayment and amortisation) and the asset’s current fair value less any impairment
loss previously recognised. Where a decline in the fair value of an available-for-sale financial
asset has been recognised in other comprehensive income, the cumulative loss in other
comprehensive income is reclassified from equity to profit or loss.
An impairment loss in respect of unquoted equity instrument that is carried at cost is
recognised in profit or loss and is measured as the difference between the financial asset’s
carrying amount and the present value of estimated future cash flows discounted at the current
market rate of return for a similar financial asset.
Impairment losses recognised in profit or loss for an investment in an equity instrument

classified as available-for-sale is not reversed through profit or loss.
Annual Report 2018


l) Impairment (Continued)
(i) Financial assets (Continued)
If, in a subsequent period, the fair value of a debt instrument increases and the increase can
be objectively related to an event occurring after the impairment loss was recognised in profit
or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not
exceed what the carrying amount would have been had the impairment not been recognised at
the date the impairment is reversed. The amount of the reversal is recognised in profit or loss.
(ii) Other assets
The carrying amounts of other assets (except for inventories, deferred tax assets, assets arising
from employee benefits and non-current assets classified as held for sale) are reviewed at the
end of each reporting period to determine whether there is any indication of impairment. If such
indication exists, then the asset’s recoverable amount is estimated. For goodwill, and intangible
assets that have indefinite useful lives or that are not yet available for use, the recoverable
amount is estimated each period at the same time.
For the purpose of impairment testing, assets are grouped together into the smallest group of
assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or cash-generating units. Subject to an operating segment ceiling test,
for the purpose of goodwill impairment testing, cash-generating units to which goodwill has been
allocated are aggregated so that the level at which impairment testing is performed reflects the
lowest level at which goodwill is monitored for internal reporting purposes. The goodwill acquired
in a business combination, for the purpose of impairment testing, is allocated to group of cash-
generating units that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and
its fair value less costs of disposal. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or cash-generating unit.
An impairment loss is recognised if the carrying amount of an asset or its related cash-generating
unit exceeds its estimated recoverable amount.
Impairment loss are recognised in profit or loss. Impairment losses recognised in respect of cash-
generating units are allocated first to reduce the carrying amount of a goodwill allocated to the
cash-generating unit (group of cash-generating units) and then to reduce the carrying amounts of
the other assets in the cash-generating unit (group of cash-generating units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment
losses recognised in prior periods are assessed at the end of each reporting period for any
indications that the loss has decreased or no longer exists. An impairment loss is reversed if
there has been a change in the estimates used to determine the recoverable amount since
the last impairment loss was recognised. An impairment loss is reversed only to the extent
that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss has been recognised.
Reversal of impairment losses are credited to profit or loss in the financial year which the
reversals are recognised.
Annual Report 2018

m) Cash and cash equivalents
Cash and cash equivalents in the statements of cash flows comprise cash and bank balances,
short-term bank deposits and other short-term, highly liquid investments that have a short maturity
of three months or less from the date of acquisition, net of bank overdrafts.
n) Equity instruments
Instruments classified as equity are measured at cost on initial recognition and are not remeasured
subsequently.
Ordinary shares are classified as equity.
o) Provision
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. The unwinding of the discount is recognised
as finance cost.
p) Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised
in profit or loss except to the extent that it relates to a business combination or items recognised
directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year,
using tax rates enacted or substantively enacted by the end of the reporting period, and any
adjustment to tax payable in respect of previous financial year.
p) Income tax (Continued)
Deferred tax is recognised using the liability method, providing for temporary differences between the
carrying amounts of assets and liabilities in the statement of financial position and their tax bases.
Deferred tax is not recognised for the following temporary difference: the initial recognition of goodwill,
the initial recognition of assets and liabilities in a transaction that is not a business combination and
that affects either accounting nor taxable profit or loss. Deferred tax is measured at the tax rates that
are expected to be applied to the temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities and assets, and they relate to income taxes levied by the same tax authority on the same
taxable entity, or on different tax entities, but they intend to settle current tax assets and liabilities
on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilised. Deferred tax assets are reviewed at the
end of each reporting period and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.
Annual Report 2018

q) Revenue and other income
(i) Rendering services and sales of goods
Revenue from contracts with customers is recognised by reference to each distinct performance
obligation in the contract with customer. Revenue from contracts with customers is measured
at its transaction price, being the amount of consideration which the Group and the Company
expects to be entitled in exchange for transferring promised goods or services to a customer,
net of goods and service tax, returns, rebates and discounts. Transaction price is allocated
to each performance obligation on the basis of the relative standalone selling prices of each
distinct good or services promised in the contract. Depending on the substance of the
contract, revenue is recognised when the performance obligation is satisfied, which may be at
a point in time or over time.
(ii)
Rental income
Rental income from the investment property is recognised in profit or loss on a straight-line
basis over the term of the lease. Lease incentives granted are recognised as an integral part
of the total rental income, over the term of the lease. Rental income from sub-leased property
is recognised as other income.
(iii) Commissions
When the Group acts in the capacity of an agent rather than as the principal in a transaction,
the revenue recognised is the net amount of commission made by the Group.
(vi) Dividend income
Dividend income is recognised in profit or loss on the date that the Group’s or the Company’s
right to receive payment is established.
(vii) Profit earned from General Investment Account
Profit earned from General Investment Account is recognised on a time proportion basis that
reflects the effective yield on the deposits.
viii) Property development
Revenue from property development is recognised as and when the control of the asset is
transferred to the customer and it is probable that the Group and the Company will collect the
consideration to which it will be entitled in exchange for the asset that will be transferred to
the customer. Depending on the terms of the contract and the laws that apply to the contract,
control of the asset may transfer over time or at a point in time. Control of the asset is
transferred over time if the Group’s and the Company’s performance does not create an asset
with an alternative use to the Group and the Company and the Group and the Company has
an enforceable right to payment for performance completed to date.
If control of the asset transfers over time, revenue is recognised over the period of the contract by
reference to the progress towards complete satisfaction of that performance obligation. Otherwise,
revenue is recognised at a point in time when the customer obtains control of the asset.
Annual Report 2018

r) Employee benefits
(i) Short term employee benefits
Short term employee benefit obligations in respect of salaries, annual bonuses, paid annual
leave and sick leave are measured on an undiscounted basis and are expensed as the related
service is provided.
A liability is recognised for the amount expected to be paid under short term cash bonus
or profit sharing plans if the Group 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.
(ii) Defined contribution plan
The Group makes statutory contribution to approved provident funds and the contributions
made are charged to statement of income in the period to which they relate. When the
contributions have been paid, the Group has no further payment obligations.
s) Fair value measurements
Fair value of an asset or a liability, except for lease transactions is determined as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The measurement assumes that the transaction to sell
the asset or transfer the liability takes place either in the principal market or in the absence of a
principal market, in the most advantageous market.
For non-ﬁnancial asset, the fair value measurement takes into account a market participant’s ability
to generate economic beneﬁts by using the asset in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
When measuring the fair value of an asset or a liability, the Group and the Company uses
observable market data as far as possible. Fair value are categorised into different levels in a fair
value hierarchy based on the input used in the valuation technique as follows:
Level 1: uoted prices (unadjusted) in active markets for identical assets or liabilities that the
q
Company can access at the measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3: unobservable inputs for the asset or liability.
The Group and the Company recognises transfers between levels of the fair value hierarchy as of
the date of the event or change in circumstances that caused the transfers.
Annual Report 2018

4. USE OF ESTIMATES AND JUDGEMENTS
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised and in any future periods
affected.
There are no significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have significant effect on the amounts recognised in the financial statements other than those
disclosed in the following:
(i) Property, plant and equipment, property investments and depreciation
The estimates for the residual values, useful lives and related depreciation charges for the property,
plant and equipment and property investments are based on commercial factors which could change
significantly as a result of technical innovations and competitors’ actions in response to the market
conditions.
(ii) Impairment of trade and other receivables
An impairment loss is recognised when there is objective evidence that a financial asset is impaired.
Management specifically reviews its loans and receivables financial assets and analyses historical
bad debts, customer concentrations, customer creditworthiness, current economic trends and
changes in the customer payment terms when making a judgement to evaluate the adequacy of
the allowance for impairment losses. When there is objective evidence of impairment, the amount
and timing of future cash flows are estimated based on historical loss experience for assets with
similar credit risk characteristics. If the expectation is different from the estimation, such difference
will impact the carrying value of receivables.
(iii) Income taxes
There are certain transactions and computations for which the ultimate tax determination may be
different from the initial estimate. The Group and the Company recognises tax liabilities based on
their understanding of the prevailing tax laws and estimates of whether such taxes will be due in the
ordinary course of business. Where the final outcome of these matters is different from the amounts
that were initially recognised, such difference will impact the income tax and deferred tax provisions
in the period in which such determination is made.
(iv) Deferred tax assets
Deferred tax assets are recognised for all unutilised tax losses to the extent that it is probable
that future taxable profit will be available against which the tax losses can be utilised. Management
judgement is required to determine the amount of deferred tax assets that can be recognised, based
upon the likely timing and level of future taxable profits.
5. PROPERTY, PLANT AND EQUIPMENT
86
Office,
Land and furniture and Plant and Library Motor Asset in
buildings Renovations equipment machinery books vehicles progress Total
RM RM RM RM RM RM RM RM
GROUP
Annual Report 2018
Cost:
IIUM Holdings Sdn Bhd
At 1 January 2018 41,664,261 13,643,711 21,316,895 2,785,395 2,074,423 2,442,351 274,798 84,201,834
Additions 143,343 503,175 631,612 605,918 21,997 422,926 - 2,328,971
Adjustment - - (13,920) - - (40) (21,500) (35,460)
Reclassification 4,924,419 (4,434,574) (1,186,492) (167,709) 93,697 270,489 325,980 (174,190)
Written off - - (3,504,733) (28,046) (58,124) (128,059) - (3,718,962)
At 31 December
2018 46,732,023 9,712,312 17,243,362 3,195,558 2,131,993 3,007,667 579,278 82,602,193
Accumulated depreciation:
At 1 January 2018 10,366,051 6,265,396 16,919,050 913,946 2,038,436 1,832,106 - 38,334,985

Charge for the year 1,398,378 644,659 1,848,546 303,084 66,092 368,022 - 4,628,781
Reclassification 943,718 (190,068) (1,675,931) 632,002 (13,227) 114,366 - (189,140)

Written off - - (3,504,707) (28,045) (58,124) (128,059) - (3,718,935)

At 31 December
2018 12,708,147 6,719,987 13,586,958 1,820,987 2,033,177 2,186,435 - 39,055,691
Carrying amount:
At 31 December
2018 34,023,876 2,992,325 3,656,404 1,374,571 98,816 821,232 579,278 43,546,502
At 31 December
2017 31,298,210 7,378,315 4,397,845 1,871,449 35,987 610,245 274,798 45,866,849
Annual Report 2018

5. PROPERTY, PLANT AND EQUIPMENT
Furniture Motor Office

Computers and fittings vehicles equipment Total
RM RM RM RM RM
COMPANY
Cost:
At 1 January 2018 232,514 57,579 239,503 18,330 547,926
Additions 5,642 - - - 5,642
Disposal - - - - -
At 31 December 2018 238,156 57,579 239,503 18,330 553,568
At 1 January 2018 206,686 50,626 239,502 13,408 510,222
Charge for the year 24,810 1,738 - 1,358 27,906
Disposal - - - - -
At 31 December 2018 231,496 52,364 239,502 14,766 538,128
Carrying amount:
At 31 December 2018 6,660 5,215 1 3,564 15,440
At 31 December 2017 25,828 6,953 1 4,922 37,704
The carrying amount of property, plant and equipment held under hire purchase and finance lease
arrangements are as follows:
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Computer equipment 416,720 702,814 - -

Motor vehicles 276,514 224,062 1 1
693,234 926,876 1 1
Annual Report 2018

6. INVESTMENT PROPERTIES
Leasehold
GROUP Buildings Land Total
RM RM RM
Cost:
At 1 January 2018 86,600,889 3,486,098 90,086,987
Additions - - -
Disposals - - -
Reclassification (1,500,000) 1,500,000 -
At 31 December 2018 85,100,889 4,986,098 90,086,987
At 1 January 2018 240,000 - 240,000
Charge for the year 1,702,018 17,045 1,719,063
Disposals - - -
Reclassification (180,000) 180,000 -
At 31 December 2018 1,762,018 197,045 1,959,063
Carrying amount:
At 31 December 2018 83,338,871 4,789,053 88,127,924
At 31 December 2017 86,360,889 3,486,098 89,846,987

Leasehold
COMPANY Buildings Land Total
RM RM RM
Cost:
At 1 January 2018 75,399,358 3,486,098 78,885,456
Additions - - -
Disposals - - -
At 31 December 2018 75,399,358 3,486,098 78,885,456
At 1 January 2018 - - -
Charge for the year 1,507,987 - 1,507,987
Disposals - - -
At 31 December 2018 1,507,987 - 1,507,987
Carrying amount:
At 31 December 2018 73,891,371 3,486,098 77,377,469
At 31 December 2017 75,399,358 3,486,098 78,885,456
Annual Report 2018

6. INVESTMENT PROPERTIES (Continued)
The carrying amount of investment properties pledged for term financing – i as referred in Note 17 are
as follows:
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Land and buildings 88,127,924 89,846,987 77,377,469 78,885,456
7. INTANGIBLE ASSETS
GROUP
2018 2017
RM RM
At 1 January - -
Additions 409,166 -
409,166 -
Less: Accumulated amortisation - -
Accumulated impairment - -
Carrying amount at 31 December 409,166 -
8. INVESTMENT IN SUBSIDIARIES
COMPANY
2018 2017
RM RM
Unquoted shares at cost 17,494,995 15,994,995

Annual Report 2018

8. INVESTMENT IN SUBSIDIARIES (Continued)
Details of the subsidiaries which are incorporated in Malaysia are as follows:
Equity interest held

Name of subsidiaries (%) Principal activities
2018 2017
IIUM Properties Sdn Bhd 100 100 Acquisition and development of land and buildings
and other related services.
IIUM Schools Sdn Bhd 100 100 Providing education and related services.
IIUM Entrepreneurship and 100 100 Providing consultancies and educational services.
Consultancies Sdn Bhd
IIUM Centre for Continuing 100 100 Providing education and related services.
Education Sdn Bhd
IIUM Higher Education Sdn Bhd 100 100 Providing education and related services.
Daya Bersih Sdn Bhd 100 100 Cleaning services, landscaping and facilities
management services.
IIUM Educare Sdn Bhd 100 100 Pre-school, kindergarten and child nursery.
IIUM Medical Specialist Centre 100 100 Medical specialist centre and medical project
Sdn Bhd consultancy.
IKOP Sdn Bhd 100 100 Trading and retailing of medicine and health
products.
IIUM Corporate Management 100 100 Secretarial services.

Sdn Bhd
IIUM Advanced Technologies 100 100 Information technology training and services.
Sdn Bhd
IIUM Shariah Advisory Services 100 100 Shariah advisory services.

Sdn Bhd
IIUM Montessori Sdn Bhd 100 100 Dormant.
IIUM Security Services Sdn Bhd 100 100 Dormant.
IIUM International Sdn Bhd 100 100 Dormant.
Increase in cost of investment
During the financial year, the Company has acquired the additional share capital issued by the following
subsidiary for cash consideration at RM1.00 each:
a)
IIUM Medical Specialist Centre Sdn Bhd has increased its issued and paid-up capital from
RM6,000,000 to RM7,500,000 by way of issuance of 1,500,000 ordinary shares of RM1.00 each.
Annual Report 2018

9. DEFERRED TAX (ASSETS)/LIABILITIES
GROUP
2018 2017
RM RM
At 1 January 5,078,235 4,162,657

Deferred tax (income)/expense recognised (Note 22) (161,785) 915,578
At 31 December 4,916,450 5,078,235
Presented after appropriate offsetting as follows:

Deferred tax assets (50,394) (50,394)
Deferred tax liabilities 4,966,844 5,128,629
4,916,450 5,078,235
The component and movement of deferred tax liabilities and assets during the financial year prior to
offsetting are as follows:
Deferred tax (assets)/liabilities of the Group:
GROUP
2018 2017
RM RM
Plant and equipment

At 1 January 5,078,235 4,162,657
Deferred tax (income)/expense recognised (Note 22) (161,785) 915,578
At 31 December 4,916,450 5,078,235
The availability of the unutilised tax losses and unabsorbed capital allowances for offsetting against future
taxable profit of the respective subsidiaries are subject to no substantial changes in shareholdings of
those subsidiaries under section 44(5A) and (5B) of Income Tax Act, 1967.
10. INVENTORIES
GROUP
2018 2017
RM RM
At cost:
Raw materials 423,939 43,181
Work in progress 6,089 -
Finished goods 188,050 67,400
Trading goods 665,686 554,963
1,283,764 665,544
Annual Report 2018

11. PROPERTY DEVELOPMENT COST
GROup
2018 2017
RM RM
At 1 January - 7,133,385
Cost incurred during the year:
- Development costs - 540,057
Transferred to investment properties (Note 6) - (7,133,385)
Transferred to contract costs (Note 12) - (540,057)
At 31 December - -
12. CONTRACT WITH CUSTOMERS
(i) Contract assets / (liabilities)
GROUP
2018 2017
RM RM
Contract assets - 125,044

Contract liabilities (6,752) -
The contract assets primarily relate to the Group’s rights to consideration for work completed on
construction contracts but not yet billed at the reporting date. Typically, the amount will be billed
within 30 days and payment is expected is expected within 60 days.
The contract liabilities primarily relate to the advance consideration received from a customer for
construction contract, which revenue is recognised overtime during the construction. The contract
liabilities are expected to be recognised as revenue over a period of 90 days.
(ii) Contract costs
GROUP
2018 2017
RM RM
Cost to obtain a contract - -

Cost to fulfil a contract
- Pre-contract cost 974,181 540,057
- Set-up cost - -
974,181 540,057
Less: Impairment loss - -
974,181 540,057
Annual Report 2018

13. TRADE AND OTHER RECEIVABLES
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Trade:
Trade receivables 26,118,212 24,753,269 420,569 66,960
Less: Allowance for impairment (5,157,335) (5,615,132) - -
20,960,877 19,138,137 420,569 66,960
Amount due from subsidiaries - - 108,950 859,587
20,960,877 19,138,137 529,519 926,547
Amount due from ultimate

holding company 17,317,976 17,459,086 650,931 -
Less: Allowance for impairment (843,977) (809,958) - -
16,473,999 16,649,128 650,931 -
Non-trade:
Other receivables 2,710,998 3,138,419 348,831 112,755
Advancement 679,417 194,008 604,738 119,656
Deposits 1,554,914 1,518,997 - 7,200
Prepayments 411,828 579,295 3,136 -
Deposits for bank guarantees 115,056 99,615 - -
Amount due from subsidiaries - - 17,774,442 15,301,037
5,472,213 5,530,334 18,731,147 15,540,648
Total trade and other receivables 42,907,089 41,317,599 19,911,597 16,467,195
The Group’s and the Company’s credit term of trade receivables is 30 days to 90 days (2017: 30 days
to 90 days). Other credit term is assessed and approved on case by case basis.
Deposits for bank guarantees are pledged to banks for bank guarantee facilities granted to certain
subsidiaries.
The amounts due from ultimate holding company are trade in nature, unsecured and interest free.
The amounts due from subsidiaries are unsecured, interest free and repayable on demand.
Annual Report 2018

13. TRADE AND OTHER RECEIVABLES (Continued)
The Group’s receivables that are impaired at the reporting date and the movement of the allowance
accounts used to record the impairment are as follows:
GROUP
2018 2017
RM RM
Trade receivables:
At 1 January 5,615,132 3,729,579
Allowance for impairment 699,250 2,404,479
Reversal of impairment (1,157,047) (518,926)
At 31 December 5,157,335 5,615,132
Amount due from ultimate holding company:

At 1 January 809,958 889,205
Allowance for impairment 318,091 456,170
Reversal of impairment (284,072) (535,417)
As at 31 December 843,977 809,958
Trade receivables that are individually determined to be impaired at the reporting date relate to the
debtors that are in significant financial difficulties and have defaulted on payments. These receivables
are not secured by any collateral or credit enhancement.
14. INVESTMENT IN UNIT TRUST
GROUP
2018 2017
RM RM
Unit trust investment 200,000 100,000

Annual Report 2018

15. CASH AND CASH EQUIVALENTS
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Cash and bank balances 17,598,142 10,970,301 2,639,839 1,768,279

Deposits with licensed bank 8,420,832 17,892,190 - -
Cash and bank balances 26,018,974 28,862,491 2,639,839 1,768,279
Less: Deposits pledged
for banking facilities (3,486,075) (2,398,176) - -
22,532,899 26,464,315 2,639,839 1,768,279
Bank overdrafts (2,415,023) (1,464,918) - -
Cash and cash equivalents 20,117,876 24,999,397 2,639,839 1,768,279
Deposits with licensed banks of the Group amounting to RM3,486,075 (2017: RM2,398,176) are
pledged to banks for Business Cash Line – i facilities granted to certain subsidiaries as referred to
Note 17.
16. SHARE CAPITAL
2018 2018 2017 2017

Units RM Units RM
Ordinary shares:
Issued and fully paid:
At 31 December 5,000,000 5,000,000 5,000,000 5,000,000
Annual Report 2018

17. FINANCING – i
Details of the Islamic financings are as follows:
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Current:
Secured:
Business cash-line i 2,415,023 1,464,918 - -
Term financing - i 4,589,961 2,216,300 3,000,546 507,652
7,004,984 3,681,218 3,000,546 507,652
Non-current:
Secured:
Term financing - i 85,325,537 91,362,674 64,889,800 69,692,348
85,325,537 91,362,674 64,889,800 69,692,348
Total financing - i
Business cash-line i 2,415,023 1,464,918 - -
Term financing - i 89,915,498 93,578,974 67,890,346 70,200,000
92,330,521 95,043,892 67,890,346 70,200,000
Repayable as follows:
- not later than 1 year 7,004,984 3,681,218 3,000,546 507,652
- later than 1 year and not later
than 5 years 20,690,974 12,628,332 13,514,103 1,136,196
- later than 5 years 64,634,563 78,734,342 51,375,697 68,556,152
92,330,521 95,043,892 67,890,346 70,200,000
a)
The Tawarruq Facility (Business Financing i) of RM70,200,000 was granted in November 2015
by Bank Islam Malaysia Berhad (“the Bank”) for the purpose to part finance the purchase of
eight (8) blocks four (4) storey student hostel building complete with furniture and fitting including
other amenities at Pagoh Education Hub, Johor. It is repayable by 216 months inclusive of grace
period. Term financing - i bears financing cost at Base Financing Rate (BFR) - 1.6% per annum.
The financing is secured by deed of assignment over the property mentioned above and deed of
assignment of rental proceeds between the Company and Bank Islam for crediting the monthly
rental proceed from International Islamic University Malaysia being the tenant into the Company
designated Non-Checking Current Account maintained with Bank Islam.
b) The Bai Bithaman Ajil (BBA) of RM1,700,000 was granted in August 2012 by Bank Islam Malaysia
Berhad (“the Bank”) for the purpose of refinancing one (1) unit of double-storey bungalow. It is
repayable by 192 months. Term financing - i bears financing cost at Base Financing Rate (BFR)
- 1.8% per annum. The BBA is secured by a first Iegal charge over one (1) unit of double-storey
bungalow at No.9, Jalan 1/23E, Taman Setapak Indah, 53300 Kuala Lumpur held under PN 47393,
Lot No 30339, Mukim Setapak, District of Kuala Lumpur, State of Wilayah Persekutuan.
Annual Report 2018

17. FINANCING – i (Continued)
c) The Business Financing – i (BF- i) of RM6,400,000 was granted in March 2016 by Bank Islam
Malaysia Berhad (“the Bank”) for the purpose to part finance the development of 1 block 2 storey
building known as IIUM Student Centre at International Islamic University Malaysia, Gombak
Campus. It is repayable by 180 months inclusive of grace period of (12) months or upon Certificate
Completion and Compliance (CCC) whichever is earlier. Term financing - i bears financing cost at
Base Financing Rate (BFR) - 1.9% per annum. The BFI - i is secured by deed of assignment of
rental proceeds between the Company and Bank Islam for crediting the monthly rental proceed
from International Islamic University Malaysia being the tenant into the Company designated Non-
Checking Current Account maintained with Bank Islam.
d) The Business Cash Line – i facilities of certain subsidiaries are for a total limit of RM6,300,000.
The facilities bear financing cost at Base Financing Rate (BFR) + 1.5% per annum and secured by
the deposits with licensed bank of RM1,500,000 as referred to Note 15.
18. HIRE-PURCHASE AND LEASE FINANCING – i
GROUP
2018 2017
RM RM
Current:
Hire purchase payable 156,094 81,856
Finance lease payable 270,463 264,815
426,557 346,671
Non-current:
Hire purchase payable 140,405 175,363
Finance lease payable 126,780 426,167
267,185 601,530
Total financing 693,742 948,201
Annual Report 2018

18. HIRE-PURCHASE AND LEASE FINANCING – I (Continued)
Hire purchase payables - i are further analysed as follow:
2018 2017
RM RM
Future hire purchase and lease payments:

- not later than 1 year 420,895 413,528
- later than 1 year and not later than 5 years 376,429 618,650
- later than 5 years - 45,335
797,324 1,077,513
Future finance charges (103,582) (129,312)
Net hire-purchase and lease payable 693,742 948,201
Repayable as follows:
- not later than 1 year 364,419 346,671
- later than 1 year and not later than 5 years 329,323 601,530
693,742 948,201
19. TRADE AND OTHER PAYABLES
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Trade:
Trade payables 15,672,807 20,604,885 206,990 365,116
Non-trade:
Other payables 2,651,542 12,232,212 1,294,074 204,877
Deposits received 11,212,272 9,196,656 8,386,560 7,741,440
Accruals 2,820,381 571,745 32,126 68,833
Deferred income 13,159,092 7,363,661 - -
Amount due to ultimate
holding company 31,174,224 28,845,932 28,811,355 28,835,628
Amount due to subsidiary
companies - - 1,256,453 1,291,530
61,017,511 58,210,206 39,780,568 38,142,308
Total trade and other payables 76,690,318 78,815,091 39,987,558 38,507,424
The amounts due to ultimate holding company and subsidiaries are unsecured, interest free and
repayable on demand.
Annual Report 2018

20. REVENUE
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Student fees 52,731,173 58,417,181 - -

Rendering services 75,235,828 72,194,294 1,963,593 653,331
Rental income 13,815,184 11,294,923 13,031,440 8,325,600
Management fee income - - 840,000 1,200,000
Dividend income - - 4,251,117 2,771,024
Others 88,743 390,161 - -
141,870,928 142,296,559 20,086,150 12,949,955
21. PROFIT BEFORE TAX
This has been arrived at after (crediting)/ charging the following items:
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Other income
Reversal of allowance for
impairment (1,441,119) (1,054,343) - -
Hibah (12,189) (19,448) (3,997) (7,578)
Gain on disposal of property,
plant and equipment - (20,089) - -
Interest income (356,631) (416,604) - -
Rental of building (841,443) (403,486) - -
Waived of other payables (36,730) - - -
Cost of sales
Rental of building 597,275 542,110 - -
Employee costs:
Salaries, wages and
allowances 29,314,932 20,485,910 - -
EPF contributions 3,575,112 1,409,885 - -
SOCSO contributions 527,914 - - -
Other staff benefits 75,836 101,600 - -
Annual Report 2018

21. PROFIT BEFORE TAX (Continued)
This has been arrived at after (crediting)/charging the following items: (Continued)
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Administrative expenses
Audit fee - current year 173,700 201,700 28,000 48,000
Allowance for impairment 1,017,341 2,404,479 - -
Bad debts written off 36,473 225 - -
Depreciation of investment
properties 1,719,063 40,000 1,507,987 -
Depreciation of property, plant
and equipment 4,235,524 4,784,245 27,906 56,489
Directors’ - allowance 553,950 561,700 193,000 228,900
- remuneration 62,000 58,500 - -
- others 75,542 40,814 - -
Honorarium for Directors 30,000 20,000 30,000 20,000
Written off property, plant
and equipment 27 - - -
Rental of office 2,997,295 3,262,576 44,973 34,641
Rental of photocopy machine 55,816 1,141,009 9,600 8,000
Written-off of inventories 4,385 16,842 - -
Employee costs:
Salaries, wages and allowances 13,090,481 20,610,185 1,606,472 1,357,272
EPF contribution 1,601,185 2,284,226 222,095 183,621
SOCSO contribution 189,774 480,792 13,473 11,947
Others 82,682 4,900,867 158,518 68,546
Finance cost
Term charges on hire purchase - i 14,537 10,875 - -
Term charges on leasing 26,037 36,239 - -
Term charges on bank overdraft 271,768 103,516 - -
Term charges on term financing - i 3,776,221 3,455,113 3,455,037 2,691,788
Annual Report 2018

22. TAX EXPENSE
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Tax expense for the year:

Malaysian income tax 2,145,534 1,341,785 699,184 200,000
Under/(Over) provision in prior
years 31,436 2,889,708 (179,732) 68,615
2,176,970 4,231,493 519,452 268,615
Deferred tax expense relating

to origination of temporary
differences (Note 9) (161,785) 915,578 - -
Underprovision in prior years - - - -
(161,785) 915,578 - -
2,015,185 5,147,071 519,452 268,615
Domestic income tax is calculated at the Malaysian statutory rate of 24% (2017: 24%) of the estimated
assessable profit for the year.
A reconciliation of tax expense applicable to profit before tax at the statutory income tax rate to tax
expense at the effective income tax rate of the Group and of the Company is as follows:
GROUP COMPANY
2018 2017 2018 2017
RM RM RM RM
Profit before tax 5,265,850 7,027,647 5,595,231 2,788,411
Taxation at Malaysian statutory

tax rate of 24% (2017:24%) 2,112,009 1,686,635 1,342,855 669,219
Income not subject to tax
purpose (2,605,732) (389,350) (2,169,906) (140,584)
Expenses not deductible for
tax purposes 3,524,040 1,748,943 1,526,235 51,138
Income subject to tax 72,860 - - -
Double deductable (40,308) (13,932) - (13,932)
Utilisation of tax incentives - (1,934,327) - -
Deferred tax asset not recognised 368,338 243,816 - (365,841)
Utilisation of capital allowances (1,285,673) - - -
Under/(Over) provision in prior
years 31,436 2,889,708 (179,732) 68,615
Deferred tax (income)/expense
recognised (161,785) 915,578 - -
2,015,185 5,147,071 519,452 268,615
Annual Report 2018

23. SIGNIFICANT RELATED PARTY DISCLOSURES
For the purposes of these financial statements, parties are considered to be related to the Company if
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 Company and the
party are subject to common control or common significant influence. Related parties may be individuals
or other entities.
There are significant related party disclosures with key management personnel and related parties during
the financial year.
a) Related parties and relationships
The related parties and their relationship with the Company are as follows:
Related parties Relationships

International Islamic University Malaysia Holding company.

Subsidiaries subject to common control or All subsidiary companies.
common significant influence

Key management personnel The key management personnel of the
Company consist of all Directors of the
Company.
b) Significant related party balances and transactions
Company
2018 2017
RM RM
(i) Revenue
Management fee
Daya Bersih Sdn Bhd 240,000 240,000
IIUM Advanced Technologies Sdn Bhd - 60,000
IIUM Centre for Continuing Education Sdn Bhd 60,000 120,000
IIUM Educare Sdn Bhd - 60,000
IIUM Entrepreneurship and Consultancies Sdn Bhd 60,000 -
IIUM Higher Education Sdn Bhd - 240,000
IIUM Properties Sdn Bhd 240,000 240,000
IIUM Schools Sdn Bhd 240,000 240,000
Rental fee for Pagoh Hostel

International Islamic University Malaysia (“IIUM”) 7,741,440 3,225,600
Annual Report 2018

23. SIGNIFICANT RELATED PARTY DISCLOSURES (Continued)
b) Significant related party balances and transactions (Continued)
Company
2018 2017
RM RM
(i) Revenue (Continued)

Facilities Management Services for Pagoh Hostel
International Islamic University Malaysia (“IIUM”) 1,952,793 650,931
Dividend Income
Daya Bersih Sdn Bhd 1,689,000 1,183,000
IIUM Properties Sdn Bhd 237,117 314,779
IIUM Schools Sdn Bhd 2,325,000 1,250,000
IIUM Corporate Management Sdn Bhd - 23,245
(ii) Cost of sales

Facilities Management Services for Pagoh Hostel
Daya Bersih Sdn Bhd 1,952,793 650,931
c) Key management personnel
There were no significant related party balance and transactions with key management personnel
other than Directors’ remuneration which is disclosed in Note 21 to the financial statements.
24. FINANCIAL INSTRUMENTS
The table below provides an analysis of financial instruments categorised as follows:
(i) Amortised cost;

(ii) Fair value through other comprehensive income (“FVOCI”);
(iii) Fair value through profit or loss (“FVTPL”).
Annual Report 2018

24. FINANCIAL INSTRUMENTS (Continued)
Carrying Amortised
amount cost FVOCI FVTPL
GROUP RM RM RM RM
2018
Financial Assets
Trade and other receivables (excluding
prepayments and advancement) 41,815,844 41,815,844 - -
Investment in unit trust 200,000 - - 200,000
Cash and bank balances 26,018,974 26,018,974 - -
68,034,818 67,834,818 - 200,000
Financing - i 92,330,521 92,330,521 - -
Hire purchase and lease - i 693,742 693,742 - -
Trade and other payables
(excluding deferred income) 63,531,226 63,531,226 - -
156,555,489 156,555,489 - -
2017
Financial Assets
Investment in unit trust 100,000 - - 100,000
69,506,787 69,406,787 - 100,000
Financing - i 95,043,892 95,043,892 - -
Hire purchase and lease - i 948,201 948,201 - -
(excluding deferred income) 71,451,430 71,451,430 - -
167,443,523 167,443,523 - -
Annual Report 2018

24. FINANCIAL INSTRUMENTS (Continued)
Carrying Amortised
amount cost FVOCI FVTPL
Company RM RM RM RM
2018
Financial Assets
21,943,562 21,943,562 -
Financing - i 67,890,346 67,890,346 - -
Trade and other payables 39,987,558 39,987,558 - -
107,877,904 107,877,904 - -
2017
Financial Assets
18,115,818 18,115,818 - -
Financing - i 70,200,000 70,200,000 - -
Trade and other payables 38,507,424 38,507,424 - -
108,707,424 108,707,424 - -
The carrying amount of other receivables, cash and bank balances and other payables approximate fair
value due to the relatively short term nature of these financial instruments.
25. FINANCIAL RISK AND CAPITAL MANAGEMENT
a) Financial risk management
The Group’s activities expose it to a variety of financial risk, including credit risk, market risk, liquidity
and cash flow risk.
(i) Credit risk
Credit risk is defined as the potential loss arising from customers or counterparties failing to
meet their financial contractual obligations to the Group. The Group seeks to manage credit
risk by ensuring its customers or counterparties have sound financial standing and credit
history.
Annual Report 2018

25. FINANCIAL RISK AND CAPITAL MANAGEMENT (Continued)
a) Financial risk management (Continued)
(i) Credit risk (Continued)
Receivables and contract assets
The maximum exposure to credit risk at the reporting date is the carrying value of each class
of receivable mentioned in Note 12 and 13.
The analysis of trade and other receivables (excluding prepayments and advancement) and
contract assets are as follows:
GROUP
2018 2017
RM RM
Neither past due nor impaired 12,432,368 17,772,097
Past due but not impaired

- 1 to 30 days 5,770,535 7,517,359
- 31 days to 60 days 9,989,088 6,281,779
- 61 days to 90 days 10,394,217 4,550,398
- 91 days to 120 days 932,299 700,475
- more than 120 days 2,297,337 3,847,232
Total past due but not impaired 29,383,476 22,897,243
Impaired and provided for 5,530,095 7,352,547

47,345,939 48,021,887
Less: Allowance for impairment (5,530,095) (7,352,547)
41,815,844 40,669,340
Trade and other receivables (excluding prepayments
and advancement) 41,815,844 40,544,296
Contract assets - 125,044
41,815,844 40,669,340
The Group have no significant concentration of credit risk that may arise from exposure to a
single debtor or to group of debtors.
Annual Report 2018

(i) Credit risk (Continued)
Cash and cash equivalent
The cash and cash equivalents are held with banks and financial institutions. As at the end
of the reporting period, the maximum exposure to credit risk is represented by their carrying
amounts in the statement of financial position.
These banks and financial institutions have low credit risks. In addition, some of the bank
balances are insured by government agencies. Consequently, the Group are of the view that
the loss allowance is not material and hence, it is not provided for.
Inter-company advances
Generally, the Company considers loan and advances to subsidiaries have low credit risk. The
Company assumes that there is a significant increase in credit risk when a subsidiary’s financial
position deteriorates significantly.
(ii) Market risk
Market risk is defined as the potential change in market value arising from adverse changes to
market parameters such as interest rates and foreign exchange rates and other prices that will
affect the Group’s financial position or cash flows.
Interest rate risk
Interest rate risk relates to the potential adverse impact on the net interest income arising
from changes in market rates. The Group was exposed to minimal interest rate risk due to
maintaining the fixed rate for interest-bearing borrowings and other interest-bearing financial
instruments.
Annual Report 2018

(ii) Market risk (Continued)
Interest rate risk (Continued)
Non-
interest
<1 year 2-5 years >5 years sensitive Grand total
GROUP RM RM RM RM RM
Financial assets
Trade and other
receivables (excluding
prepayments and
advancement) - - - 41,815,844 41,815,844
Investment in unit trust 200,000 - - - 200,000
Cash and bank balances - - - 26,018,974 26,018,974
Total financial assets 200,000 - - 67,834,818 68,034,818
Financial liabilities
Financing - i 7,004,984 20,690,974 64,634,563 - 92,330,521
Hire purchase and lease - i 364,419 329,323 - - 693,742
(excluding deferred
income) - - - 63,531,226 63,531,226
Total financial liabilities 7,369,403 21,020,297 64,634,563 63,531,226 156,555,489

Net interest sensitivity
gap (7,169,403) (21,020,297) (64,634,563)
(iii) Liquidity risk
Liquidity risk is defined as the current and prospective risk to contributors’ funds arising from
the Group’s inability to efficiently meet its present and future funding need when they come
due, which may adversely affect its daily operations. Liquidity risk arises from mismatches in
the timing of cash flows.
The Group manages the funding needs allocates funds in such a manner that it maintains
optimum levels of liquidity sufficient for the operational needs without leaving it unutilised.
Any excess funds from operating cash cycles, which are temporary in nature, are invested in
deposits as and when available with financial institutions at the most competitive interest rates
obtainable.
Annual Report 2018

(iii) Liquidity risk (Continued)
Contractual maturity of financial liabilities on an undiscounted basis
The table below present the cash flows payable by the Group by remaining contractual
maturities at the end of the reporting period. The amounts disclosed in the table are the
contractual undiscounted cash flow.
<1 year 2-5 years >5 years Total

GROUP RM RM RM RM
Financing - i 7,004,984 20,690,974 64,634,563 92,330,521

Hire purchase and lease - i
- Principal 364,419 329,323 - 693,742
- Interest 52,956 50,626 - 103,582
(excluding deferred income) 63,531,226 - - 63,531,226
70,953,585 21,070,923 64,634,563 156,659,071
All interest and profit rates are based on the contractual interest and profit rate as at the
reporting period.
b) Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a
going concern in order to provide returns for shareholders and benefits for other stakeholders and
to maintain an optimal capital structure to reduce the cost of capital.
The Group is not subject to any externally imposed capital requirements.

Annual Report 2018

26. EXPLANATION OF TRANSITION TO MFRS
As stated in Note 2, these are the first financial statements of the Group and of the Company prepared
in accordance with MFRSs.
The accounting policies set out in Note 3 have been applied in preparing the financial statements of the
Group and of the Company for the financial year ended 31 December 2018, the comparative information
presented in these financial statements for the financial year ended 31 December 2017 and in the
preparation of the opening MFRS statement of the financial position at 1 January 2017 (the Group’s
date of transition to MFRSs).
There are no material differences between the statements of financial position as at 31 December 2017
presented under MFRSs and the statements of financial position presented under MPERSs and there
are no material differences between the statements of profit or loss and other comprehensive income
presented under MFRSs and the statements of profit or loss and other comprehensive income presented
under MPERSs for the financial year ended 31 December 2017.
27. COMPARATIVE FIGURES
Certain comparative figures have also been reclassified to conform with this year’s presentation.
Annual Report 2018
Annual Report 2018
Corporate
Directory
IIUM HOLDINGS SDN BHD
Level 3, Muhammad Abdul-Rauf Building
Jalan Gombak, 53100 Kuala Lumpur
T +(6)03 - 6421 4331 / 5443

F +(6)03 - 6421 4332
W www.iiumholdings.com.my
EDUCATION SECTOR
IIUM CENTRE FOR CONTINUING EDUCATION SDN BHD SEKOLAH MENENGAH SETIABUDI
Batu 8, Jalan Sungai Pusu, Gombak
Ground Level, Ahmad Ibrahim Kulliyyah of Laws 53100 Kuala Lumpur
(AIKOL)
International Islamic University Malaysia T +(6)03 - 6188 4400 ext: 306/314
Jalan Gombak, 53100 Kuala Lumpur F +(6)03 - 6188 8345
T +(6)03 - 6421 5987 / 5456 / 5446 SEKOLAH RENDAH SETIABUDI

F +(6)03 - 6421 5778 Batu 8, Jalan Sungai Pusu, Gombak
W www.iium.edu.my/icce 53100 Kuala Lumpur
Facebook: T +(6)03 - 6188 4400 ext: 401/402
https://www.facebook.com/ F +(6)03 - 6188 8340
IIUMCentreforContinuingEducation
INTERNATIONAL ISLAMIC SCHOOL MALAYSIA
(SECONDARY)
IIUM HIGHER EDUCATION SDN BHD Batu 8, Jalan Sungai Pusu, Gombak
53100 Kuala Lumpur
INTERNATIONAL ISLAMIC COLLEGE
No. 1, Jalan 31/10A T +(6)03 - 6188 4400 ext: 201/225
Taman Batu Muda F +(6)03 - 6188 8305
68100 Kuala Lumpur INTERNATIONAL ISLAMIC SCHOOL MALAYSIA
T +(6)03 - 6187 6900 (PRIMARY)
F +(6)03 - 6186 2900 Batu 8, Jalan Sungai Pusu, Gombak
W www.iic.edu.my 53100 Kuala Lumpur
T +(6)03 - 6188 4400 ext: 303/305
F +(6)03 - 6185 6704
IIUM SCHOOLS SDN BHD INTERNATIONAL ISLAMIC SCHOOL MALAYSIA
INTERNATIONAL ISLAMIC SCHOOL MALAYSIA KUANTAN
(HQ) No A35, A37, A39, Jalan IM 7/16
Batu 8, Jalan Sungai Pusu, Gombak Bandar Indera Mahkota
53100 Kuala Lumpur 25200 Kuantan, Pahang
T+(6)03 - 6188 4400 T +(6)09 - 573 4600
F +(6)03 - 6188 3300 F +(6)09 - 573 4700
W http://www.iium-schools.edu.my
Annual Report 2018
Corporate
Directory
IIUM EDUCARE SDN BHD TASKA & TADIKA UIAM PETALING JAYA
GOMBAK (HQ) Seksyen 16, Jalan Sultan
International Islamic University Malaysia 46700 Petaling Jaya, Selangor
P.O. Box 10, Jalan Gombak
53100 Kuala Lumpur T +(6)03 - 7957 0504
E pspjaya@iiumeducare.edu.my
T +(6)03 - 6421 5934
F +(6)03 - 6421 4179 TADIKA UIAM BTHO
W www.iiumeducare.edu.my No.1, Jalan Suakasih 3/3
Facebook: www.facebook.com/iiumeducare Bandar Tun Hussein Onn
Batu 9, 43200 Cheras, Selangor
TASKA & TADIKA UIAM GOMBAK 1
IIUM Educare Sdn Bhd T +(6)03 - 9081 7633
International Islamic University Malaysia E psbtho@iiumeducare.edu.my
P.O. Box 10, Jalan Gombak TASKA & TADIKA TM DINAMIK BANGSAR
53100 Kuala Lumpur Aras Bawah, Menara TM, Jalan Pantai Baharu
T +(6)03 - 6421 5935 50672 Kuala Lumpur
E psgombak1@iiumeducare.edu.my T +(6)03 - 2242 4450
E pstmdk@iiumeducare.edu.my
TADIKA UIAM GOMBAK 2
International Islamic School Malaysia TASKA & TADIKA MIDA GENIUS
Jalan Sungai Pusu Bangunan TH Tower, Tingkat 2, Block D
53100 Kuala Lumpur Plaza Sentral, Jalan Stesen Sentral 5
T +(6)03 - 6188 0732 50470 Kuala Lumpur
E psgombak2@iiumeducare.edu.my T +(6)03 - 2260 1617
E psmida@iiumeducare.edu.my
TADIKA UIAM KERAMAT
No. 55, Jalan AU 5C/14 TASKA 1TNB BANGSAR
Taman Lembah Keramat 125, Jalan Bukit Pantai, Bukit Pantai
54200 Kuala Lumpur 59100 Kuala Lumpur
T +(6)03 - 4147 2590 E cc1tnb@iiumeducare.edu.my
E pskeramat@iiumeducare.edu.my
TADIKA UMP GAMBANG
TADIKA UIAM TAMAN BIDARA No. 1 & 3, Blok R, Kolej Kediaman Ke 2
No. 141, Jalan Bidara 2/2, Taman Bidara Universiti Malaysia Pahang,
68100 Batu Caves, Selangor 26300 Gambang, Kuantan, Pahang
T +(6)03 - 6120 1242 E psgambang@iiumeducare.edu.my
E psbidara@iiumeducare.edu.my
TASKA & TADIKA UIAM KUANTAN
TADIKA UIAM DANAU KOTA International Islamic University Malaysia
No. 2, Jalan 1/23E, Taman Danau Kota Persiaran Sultan Haji Ahmad Shah
53300 Kuala Lumpur Bandar Indera Mahkota
T +(6)03 - 4025 5755 25200 Kuantan, Pahang
E psdnkota@iiumeducare.edu.my T +(6)09 - 570 4253
E pskuantan@iiumeducare.edu.my
TADIKA UIAM BULLION MEWAH
No. 1, Jalan Bullion Mewah 4 TADIKA UIAM BESUT
Taman Bullion Mewah Lot 7205, Taman D’Maarof
68100 Kuala Lumpur Mas Kupang, Kampung Raja
T +(6)03 - 6181 1217 22200 Besut, Terengganu
E psbullion@iiumeducare.edu.my E psbesut@iiumeducare.edu.my
Annual Report 2018
Corporate
Directory
CONSULTANCIES & SERVICES SECTOR
IIUM ENTREPRENEURSHIP AND CONSULTANCIES IIUM ADVANCED TECHNOLOGies SDN BHD

SDN BHD Level 2, Block B
Kuliyyah of Information and Communication Technology
Level 3, Research Management Centre
53100 Kuala Lumpur
Jalan Gombak, 53100 Kuala Lumpur
T +(6)03 - 6421 5434 T +(6)03 - 6421 5691
F +(6)03 - 6421 5439 F +(6)03 - 6421 4332
W www.iiumconsultants.com.my W http://www.iat.com.my
IIUM CORPORATE MANAGEMENT SDN BHD IIUM SHARIAH ADVISORY SERVICES SDN BHD
Level 3, Muhammad Abdul-Rauf Building Level 3, Muhammad Abdul-Rauf Building
International Islamic University Malaysia International Islamic University Malaysia
Jalan Gombak, 53100 Kuala Lumpur Jalan Gombak, 53100 Kuala Lumpur
T +(6)03 - 6421 5440 / 4333 T +(6)03 - 6421 5440
F +(6)03 - 6421 4332 F +(6)03 - 6421 4332
W www.icmsb.com.my W www.isas.com.my
Annual Report 2018
Corporate
Directory
HEALTHCARE & OTHERS SECTOR
IIUM MEDICAL SPECIALIST CENTRE SDN BHD DAYA BERSIH SDN BHD
Kulliyyah of Medicine Corporate Office
International Islamic University Malaysia B1-3-3A, Lavel 3, Gaya Commercial Centre
Bandar Indera Mahkota Lorong Selangor, Pusat Bandar Melawati
25200 Kuantan, Pahang 53100 Kuala Lumpur
T +(6)09 - 573 0380/ +(6)09 - 573 0089 T +(6)03 - 4162 5560
F +(6)09 - 573 0654/ +(6)09 - 573 2119 F +(6)03 - 4162 5570
W www.imsc.com.my W www.dayabersih.com
Gombak Branch
AHC 2-3, Level 2
IKOP SDN BHD Azman Hashim Complex
Kulliyyah of Pharmacy International Islamic University Malaysia
International Islamic University Malaysia Jalan Gombak
Jalan Sultan Ahmad Shah 53100 Selangor Darul Ehsan
25200 Kuantan, Pahang
T +(6)03 - 6421 5415
T +(6)09 - 571 6684 F +(6)03 - 6184 2168
F +(6)09 - 571 6541
W www.ikop.com.my Kuala Lumpur (KL) Branch
Institute of Islamic Thought and Civilization (ISTAC)
IIUM KL Campus
IIUM PROPERTIES SDN BHD No. 24 Pesiaran Duta, Taman Duta
50480 Kuala Lumpur
B1-2-3A, Level 2
Gaya Commercial Centre Lorong Selangor T +(6)03 - 6207 3513
Pusat Bandar Taman Melawati F +(6)03 - 6207 3514
53100 Kuala Lumpur
Kuantan Branch
T +(6)03 - 4162 7775 Level 1, Maintenance Office, Mahallah Talhah
F +(6)03 - 4162 7776 International Islamic University Malaysia
W www.iiumproperties.com Jalan Sultan Ahmad Shah
Bandar Indera Mahkota
25200 Kuantan, Pahang Darul Makmur
T +(6)09 - 5716 777
F +(6)09 - 5716 510
Gambang Branch
Mahallah Al-Biruni
Centre for Foundation Studies IIUM
Gambang Campus, 26300 Gambang, Pahang
T +(6)09 - 5183 436 / 38
F +(6)09 - 5183 428
www.iiumholdings.com.my

Annual Report 2018 IIUM HOLDINGS

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Annual Report 2018 IIUM HOLDINGS

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Embracing

Board of Directors NOMINATION & REMUNERATION COMMITTEE

GROUP Company Secretary

Group General Manager

Group Internal Auditor

Group Company Secretary

Group Legal Advisor

EDUCATION CONSULTANCIES HEALTHCARE & OTHERS

Turnover (RM’000) 117,949 131,265 135,050 142,297 141,871

Turnover Profit Before Tax

142.3 141.9 11.7

Net Profit Total Shareholders Funds

Statement From The Board

O n behalf of the Board of Directors, I am

Year 2018 was

Tan Sri Dato’ Sri Dr.

Board of Directors and Top Management of IIUM Holdings Group Companies

Human Capital Community Outreach

Contributions to free food

In order to keep pace with

Group CEO’s Review

Operational Highlights 2014 2015 2016 2017 2018

* Figures are before consolidation adjustments for inter-company transactions

population, although enrolments million. The Setiabudi schools

IIUM Advanced Technologies ledger technologies (DLT). Six reduced by I I U M in 2018.

Profit BeforE Tax

RM5.1 mil RM0.3 mil

RM2.2 mil Zakat contribution to IIUM Endowment Fund, IIUM

Staff Salary of Pilot Plant for teaching & learning RM 1,149,839

Repayment by iSchools in lieu of rental for school building RM 1,650,000

Rental of At-Tabbari Complex for IIS Kuantan RM 477,000

Rental of office space and classrooms/facilities RM 543,302

Royalties/Licensing/Share of profits to Kulliyyahs RM 194,211

TOTAL – OTHER CASH CONTRIBUTIONS RM 4,749,352

iH ESB will expand ODL to potential of the business is huge

Acknowledgement and Appreciation

Dato’ Haji Naharudin Ali

Prof. Emeritus Tan Sri Dzulkifli BIN Abdul Razak

DK Composites pioneered in composites domes,

Final Exam - iCCE

iCCE programme during 2018:

Solid Waste Management Workshop

IIC offers the following academic programmes;

8 Diploma in Marketing Management

In 2017, IIC was awarded MyQuest ratings with

I IC has implemented Quality Management

Internationalization of higher education has become International Islamic College in TV Al-Hijrah

To be a major provider of quality Islamic education

SCHOOLS DESCRIPTION ADDITIONAL PROGRAM

1. Student Enrolment 2014-2018

School 2014 2015 2016 2017 2018

2. Student population in IISM (Malaysian and International)

IISM IISM IISM IISM Total

1. PSRA Result – Sekolah Cemerlang Peringkat Negeri Selangor – Awarded by JAIS

CORPORATE SOCIAL RESPONSIBILITY (CSR) PROGRAM

Since its initiation more than 20 years ago,

iEC is all set to provide the best and the most

comprehensive services and activities for the local

be the leading force.

H Hosting consultancy databases & services

Launching of National Housing Policy at Jabatan Perumahan

Discussion on National Housing Standard and

iAT continues to being proactive in building a

Attentive. Responsive. Efficient.