HOOVER-AnnualReport2009 _1.1MB_.pdf - Announcements - Bursa

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HOOVER-AnnualReport2009 _1.1MB_.pdf - Announcements - Bursa Powered By Docstoc
					Contents

     2-3    Notice of Annual General Meeting
        4   Statement Accompanying Notice of Annual General Meeting
        5   Corporate Information
        6   Corporate Structure
      7-9   Profile of Directors
       10   Executive Chairman’s Statement
    11-13   Audit Committee Report
   14-19    Statement on Corporate Governance
       20   Statement on Internal Controls
  21-22     Other Information
  23-91     Financial Statements
       92   List of Properties
  93-95     Shareholders’ Information

            Form of Proxy
   Notice of Annual General Meeting

   NOTICE IS HEREBY GIVEN THAT the Thirty-eighth Annual General Meeting of Grand Hoover Berhad will be held at Danau Room,
   Kota Permai Golf & Country Club, No. 1, Jalan 31/100A, Kota Kemuning, Section 31, 40460 Shah Alam, Selangor Darul Ehsan
   on Wednesday, 23 December 2009 at 9.30 a.m. to transact the following business -

   AGENDA

        As Ordinary Business

   1.   To receive and adopt the Directors’ Report and the Audited Financial Statements for the financial year               Resolution 1
        ended 30 June 2009 together with the Auditors’ Report thereon.

   2.   To approve the payment of Directors’ fees for the financial year ended 30 June 2009.                                 Resolution 2

   3.   To re-appoint YBhg. Dato’ Sim Chong Wan @ Sim Tan Beg as a Director pursuant to Section 129(6) of                    Resolution 3
        the Companies Act, 1965.

   4.   To re-elect the following Directors who retire by rotation pursuant to Article 92 of the Articles of Association
        of the Company

        (a) Mr. Sim Cheng Young                                                                                              Resolution 4
        (b) Ir. Hj. Md Mazlan Bin Md Ismail Merican                                                                          Resolution 5

   5.   To re-appoint Messrs Kreston John & Gan as Auditors of the Company and to authorise the Directors to                 Resolution 6
        fix their remuneration.

        As Special Business

   6.   To consider and if thought fit, to pass the following Ordinary Resolution -

        AUTHORITY UNDER SECTION 132D OF THE COMPANIES ACT, 1965 FOR THE DIRECTORS                                            Resolution 7
        TO ISSUE SHARES

        “THAT subject always to the Companies Act, 1965, the Articles of Association of the Company and the
        approval from the Bursa Malaysia Securities Berhad and other governmental/regulatory bodies, where
        such approval shall be necessary, the Directors be and are hereby authorised pursuant to Section 132D
        of the Companies Act, 1965, to allot and issue shares in the Company, at any time and upon such terms
        and conditions and for such purposes as they may in their absolute discretion deem fit, provided that the
        aggregate number of shares issued pursuant to this resolution does not exceed ten per cent (10%) of the
        issued capital of the Company for the time being and that such authority shall continue in force until the
        conclusion of the next Annual General Meeting of the Company. ”

   7.   To consider any other business for which due notice shall have been given.




   By Order of the Board



   CHONG FOOK SIN
   KAN CHEE JING
   Company Secretaries

   Kota Kemuning, Shah Alam
   30th November, 2009

                                                                         2
Grand Hoover Berhad (10493-P)                                                                                              Annual Report 2009
    Notice of Annual General Meeting                                                                                                cont’d


    NOTES :

    (i)     A proxy may but need not be a member of the Company, and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply
            to the Company.

    (ii)    The instrument appointing a proxy must be deposited at the Registered Office of the Company at No. 63-G, Jalan Anggerik Vanilla T31/T,
            Kota Kemuning, Section 31, 40460 Shah Alam, Selangor Darul Ehsan, not less than forty-eight (48) hours before the time set for holding the
            meeting or any adjournment thereof.

    (iii)   A member shall be entitled to appoint more than one (1) proxy (subject always to a maximum of two (2) proxies at each meeting) to attend
            and vote at the same meeting. Where a member appoints more than one (1) proxy (subject always to a maximum of two (2) proxies at each
            meeting), the appointment shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy.

    (iv) If the appointer is a corporation, the proxy form must be executed under its seal or under the hand of its attorney duly authorised.

    (v)     Explanatory note on Special Business -

            Resolution 7
            This resolution, if passed, will give the Directors authority to issue and allot new shares up to an amount not exceeding ten per cent (10%)
            of the issued capital of the Company for such purposes as the Directors in their absolute discretion consider to be in the best interest of the
            Company. This authority will commence from the date of this Annual General Meeting and unless revoked or varied by the Company at a
            general meeting, expire at the next Annual General Meeting.




                                                                             3
Annual Report 2009                                                                                                    Grand Hoover Berhad (10493-P)
   Statement Accompanying
   Notice of Annual General Meeting
   Pursuant To Paragraph 8.27(2) of The Listing Requirements Of Bursa Malaysia Securities Berhad



   1.   The following are the Directors standing for re-appointment or re-election at the Thirty-Eighth Annual General Meeting –

        (i)    Re-appointment of YBhg. Dato’ Sim Chong Wan @ Sim Tan Beg as a Director pursuant to Section 129(6) of the
               Companies Act, 1965.

        (ii)   Re-election of the following Directors pursuant to Article 92 of the Articles of Association of the Company -

               (a)   Mr. Sim Cheng Young
               (b)   Ir. Hj. Md Mazlan Bin Md Ismail Merican

   2.   The profile of Directors standing for re-appointment or re-election as mentioned in paragraph 1 above at the Thirty-Eighth
        Annual General Meeting are set out in pages 7 to 9 of the Annual Report.




                                                                      4
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Corporate Information
    as at 18th November 2009


    BOARD OF DIRECTORS                                              SHARE REGISTRAR

    Dato’ Sim Chong Wan @ Sim Tan Beg (Executive Chairman)          Tacs Corporate Services Sdn. Bhd.
    Sim Cheng Young (Managing Director)                             (Co. No. 231621-U)
    Sim Chong Leong (Executive Director)                            Unit No. 203, 2nd Floor, Block C, Damansara Intan
    Hj Basar Bin Juraimi (Independent Non-Executive Director)       No. 1, Jalan SS 20/27, 47400 Petaling Jaya,
    Ir Hj Md Mazlan Bin                                             Selangor Darul Ehsan
       Md Ismail Merican (Independent Non Executive Director)       Tel: 603-71182688
    Yap Chi Keong (Independent Non-Executive Director)              Fax: 603-71182693



    COMPANY SECRETARIES                                             BUSINESS ADDRESS

    Chong Fook Sin (MACS 00681)                                     No. 63-G, Jalan Anggerik Vanilla T31/T, Kota Kemuning
    Kan Chee Jing (MAICSA 7019764)                                  Section 31, 40460 Shah Alam, Selangor Darul Ehsan
                                                                    Tel:     603-51222968
                                                                    Fax:     603-51222663
    AUDIT COMMITTEE                                                 Website: www.hoover.com.my
                                                                    Email:   corporate@hoover.com.my
    Hj Basar Bin Juraimi (Chairman)
    Ir Hj Md Mazlan Bin Md Ismail Merican
    Yap Chi Keong                                                   PRINCIPAL BANKERS

                                                                    RHB Bank Berhad
    SENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR                       Malayan Banking Berhad
                                                                    Bank Muamalat Malaysia Berhad
    Hj Basar Bin Juraimi                                            CIMB Bank Berhad
                                                                    United Overseas Bank (Malaysia) Berhad

    AUDITORS
                                                                    STOCK EXCHANGE LISTING
    Kreston John & Gan
    Chartered Accountants                                           Main Market of the Bursa Malaysia Securities Berhad
    (Firm No. AF 0113)
    160-2-1, Kompleks Maluri,
    Business Centre, Jalan Jejaka,
    55100 Kuala Lumpur
    Tel: 03-9287 1889
    Fax: 03-9283 0889



    REGISTERED OFFICE

    No. 63-G, Jalan Anggerik Vanilla T31/T, Kota Kemuning
    Section 31, 40460 Shah Alam, Selangor Darul Ehsan
    Tel:     603-51222968
    Fax:     603-51222663
    Website: www.hoover.com.my
    Email:   corporate@hoover.com.my




                                                                5
Annual Report 2009                                                                              Grand Hoover Berhad (10493-P)
   Corporate Structure




                                        100%
       GRAND HOOVER PROPERTY SDN BHD
                   Property investment and
                     Property Development
                                                         100%
                                                         HOOVER BUILDERS SDN BHD
                                                         (Formerly known as L’Grande
                                                         Construction Sdn Bhd)
                                        100%             Contractor for building construction
          HOOVER TILING TRADING SDN BHD
                       Trading & distribution of
                        ceramic tiles, marble &
                    parquet flooring materials &
                                 sanitary wares          100%
                                                         HOOVER TILING CONTRACTS SDN BHD
                                                         Specialist contractor for tiling
                                                         & marble works

                                          70%
           HEAP WAH ENTERPRISE SDN BHD
                 Trading & distribution of pipes,
                 sanitary wares, fitting for pipes       100%
                     & sanitary wares & subsoil          HOOVER MANAGEMENT SDN BHD
                                irrigation system        Provision of management
                                                         consultancy services




                                                         80%
                                                         METRO SUN BRICKWORKS SDN BHD
                                                         Manufacturing & trading of clay bricks
                                                         (ceased production)




                                                     6
Grand Hoover Berhad (10493-P)                                                                   Annual Report 2009
    Profile of Directors


     DATO’ SIM CHONG WAN @   A Malaysian aged 72, was appointed to the Board on 25 November 2002 as Non-
     SIM TAN BEG             Executive Director. He was re-designated as the Managing Director of Grand Hoover
                             Berhad on 10 October 2003. On 13 November 2009, he resigned as the Managing
     Executive Chairman      Director and was appointed as the Executive Chairman of Grand Hoover Berhad.

                             He is an entrepreneur who has ventured into the electrical engineering sector since the
                             1960s. Since then, companies under his leadership have, among others, completed
                             various electrical infrastructure works, particularly those in low tension and high
                             tension substation works, equipment installations, switchboards, distribution boards,
                             transformers and generator set installations as well as underground cabling works.
                             Further, companies managed by him have also successfully ventured into property
                             development and have completed several projects such as development of low-cost
                             terrace houses, double storey terrace houses, shoplots and shophouses. He has
                             gained vast experience and knowledge in the operation and management of electrical
                             engineering services and property development sectors through his involvement in
                             the above sectors through the years.

                             He has direct shareholdings of 13,068,637 ordinary shares of RM1.00 each and
                             indirect shareholdings of 2,333,333 ordinary shares of RM1.00 each in the Company.
                             By virtue of his interests in the shares of the Company, he is deemed to have an
                             interest in the susidiaries of the Company. He does not hold any other directorship in
                             other public companies.

                             He has attended four out of five Board Meetings held during the financial year. He is
                             the father of Sim Chong Leong and Sim Cheng Young. He has no conflict of interest
                             with the Company and no convictions of any offences within the past 10 years.




     SIM CHENG YOUNG         A Malaysian aged 42, was appointed to the Board as Non-Executive Director on
                             25 November 2002. He was re-designated as Executive Director of Grand Hoover
     Managing Director       Berhad on 10 October 2003. On 13 November 2009, he was appointed as the
                             Managing Director of Grand Hoover Berhad.

                             He holds a Bachelor of Commerce (major in Economic & Marketing) from Deakin
                             University, Australia. After his graduation, he involved himself with the family business
                             and assisted his father, Dato’ Sim Chong Wan @ Sim Tan Beg, with the group’s
                             projects. He is well versed with all aspects of supervision and implementation of
                             various electrical infrastructure works as well as specialises in underground cabling
                             works.

                             He has indirect shareholdings of 15,401,970 ordinary shares of RM1.00 each in the
                             Company. By virtue of his interests in the shares of the Company, he is deemed to have
                             an interest in the susidiaries of the Company. He is a member of the Remuneration
                             Committee. He does not hold any other directorship in other public companies.

                             He has attended all the five Board Meetings held during the financial year. He is the
                             son of Dato’ Sim Chong Wan @ Sim Tan Beg and the brother of Sim Chong Leong.
                             He has no conflict of interest with the Company and no convictions of any offences
                             within the past 10 years.




                                               7
Annual Report 2009                                                                   Grand Hoover Berhad (10493-P)
   Profile of Directors                                                                                 cont’d



    SIM CHONG LEONG             A Malaysian aged 45, is an Executive Director and was appointed to the Board on 14
                                October 2003.
    Executive Director
                                He holds a Masters in International Business and a Bachelor of Business Administration
                                from Schiller International University, United Kingdom. After his graduation, he involved
                                himself with the family business and assisted his father, Dato’ Sim Chong Wan @ Sim
                                Tan Beg, with the group’s projects.

                                He has indirect shareholdings of 15,401,970 ordinary shares of RM1.00 each in the
                                Company. By virtue of his interests in the shares of the Company, he is deemed
                                to have an interest in the susidiaries of the Company He does not hold any other
                                directorship in other public companies.

                                He has attended all the five Board Meetings held during the financial year. He is the
                                son of Dato’ Sim Chong Wan @ Sim Tan Beg and the brother of Sim Cheng Young.
                                He has no conflict of interest with the Company and no convictions of any offences
                                within the past 10 years.




    HJ BASAR BIN JURAIMI        A Malaysian aged 60, is an Independent Non-Executive Director and was appointed
                                to the Board on 31 January 1997.
    Independent Non-Executive
    Director                    He holds a B.Sc. in Building Economics from South Bank University, UK and a M. Sc.
                                in Maintenance Management from University of Reading, UK. He was an Assistant
                                Quantity Surveyor for Gordon, Harris & Barton, London from 1973 to 1974. He
                                returned to Malaysia and became a lecturer in the School of Architecture, Institute
                                Teknologi MARA from 1975 to 1982 and subsequently started his own business
                                Basar and Harun Sdn Bhd a Chartered Quantity Surveyor company until todate. He
                                was the President of the Institution of Surveyors Malaysia from 1994 to 1995 and is a
                                current member of the Board of Quantity Surveyors Malaysia.

                                He has direct shareholdings of 10,666 ordinary shares of RM1.00 each in the
                                Company. He does not hold any shares in any of the subsidiaries of the Company. He
                                is the Chairman of the Audit Committee, a member of the Nominating Committee and
                                the Remuneration Committee. His other directorship in public company is Seacera
                                Tiles Berhad.

                                He has attended four out of five Board Meetings held during the financial year. He
                                has no family relationship with any Director and/or major shareholder of the Company.
                                He has no conflict of interest with the Company and no convictions of any offences
                                within the past 10 years.




                                                        8
Grand Hoover Berhad (10493-P)                                                                           Annual Report 2009
    Profile of Directors                                                                              cont’d



     IR HJ MD MAZLAN BIN MD      A Malaysian aged 68, is an Independent Non-Executive Director and was appointed
     ISMAIL MERICAN              to the Board on 31 January 1997.

     Independent Non-Executive   He holds a B. Eng (Hons.) in Mechanical Engineering from Universiti Teknologi MARA
     Director                    and a MBA from Ohio University, United States of America. He began his career as
                                 an Assistant Engineer in Socfin Company Berhad in 1970 and was later promoted to
                                 Manager in the Engineering Department in 1984 until his retirement in 1996. During
                                 his tenure with Socfin Company Berhad, he was responsible in the processing and
                                 maintenance operations of palm oil mills, rubber factories and design and construction
                                 of buildings.

                                 He has direct shareholdings of 10,666 ordinary shares of RM1.00 each in the
                                 Company. He does not hold any shares in any of the subsidiaries of the Company. He
                                 is the Chairman of the Nominating Committee and the Remuneration Committee and
                                 a member of the Audit Committee. He does not hold any other directorship in other
                                 public companies.

                                 He has attended all the five Board Meetings held during the financial year. He has no
                                 family relationship with any Director and/or major shareholder of the Company. He has
                                 no conflict of interest with the Company and no convictions of any offences within the
                                 past 10 years.




     YAP CHI KEONG               A Malaysian aged 57, is an Independent Non-Executive Director and was appointed
                                 to the Board on 20th October, 2006.
     Independent Non-Executive
     Director                    He is a Chartered Accountant of Malaysia Institute of Accountants and an Associate
                                 Member of The Chartered Institute of Management Accountants. He started his
                                 career as a management accountant with The News Group, United Kingdom. He
                                 later moved into industries where he held several senior accounting positions in public
                                 listed companies in Malaysia. He is currently in private practice as a management
                                 consultant specialising in corporate restructuring. He has several years experience
                                 in construction and property development including several rehabilitation schemes
                                 under Bank Negara housing rehabilitation schemes in the 1980s and more recently
                                 under the Ministry of Local Housing and Environment.

                                 He does not hold any shares, direct or indirect, in the Company or any subsidiaries of
                                 the Company. He is a member of the Audit Committee, the Nominating Committee and
                                 the Remuneration Committee. His other directorship in public companies are Envair
                                 Holding Berhad, Hock Lok Siew Corporation Bhd and Astral Supreme Berhad.

                                 He has attended all the five Board Meeting held during the financial years. He has no
                                 family relationship with any Director and/or major shareholder of the Company. He
                                 has no conflict of interest with the Company and no conviction of any offence within
                                 the past 10 years.




                                                   9
Annual Report 2009                                                                      Grand Hoover Berhad (10493-P)
   Executive Chairman’s Statement


      On behalf of the Board of Directors of Grand Hoover Berhad, I am pleased to
      present the Annual Report and Financial Statements of the Company and the
      Group for the financial year ended 30 June 2009.

   FINANCIAL OVERVIEW

   For the financial year under review, the Group recorded a revenue of RM48.76 million as compared to RM34.11 million for the
   preceding year. The higher revenue was mainly derived from its trading and property development divisions.

   The Group made a profit before taxation of RM3.54 million compared to profit before taxation of RM360,776.00. The profit was
   mainly contributed by the property development and trading divisions.

   OPERATIONAL HIGHLIGHTS

   The Group continues to remain focused in the construction sector whereby it undertakes the role of civil engineering and building
   works contractor, and in the property development sector. The Group is also involved in the trading of ceramic tiles, marble,
   sanitary wares and fittings.

   The Group has ventured into its own property development in Klang Valley which has contributed reasonable profit to the Group’s
   performance.

   The Group continues to source for strategic lands to expand its property development division that will also benefit its own
   construction and trading divisions.

   In recognition of the intensified stiff competition faced within the construction and its related industry, the Group’s business
   management remains prudent.

   CORPORATE OUTLOOK AND PROSPECTS

   The Group has been sourcing for lands for development following the completion of the property development project in Bukit
   Impiana, Kajang, Selangor.

   The Management foresees its property development division would contribute to the performance of the Group in future.

   DIVIDEND

   The Board of Directors did not recommend any dividend for the financial year ended 30 June 2009.

   APPRECIATION

   On behalf of the Board, I would like to thank the Management and employees for their continued dedication, support and
   commitment to the Group. To our valued customers, suppliers, shareholders and business associates, I thank them for their
   continued support and confidence in us.



   Dato’ Sim Chong Wan @ Sim Tan Beg
   Executive Chairman




   18th November 2009

                                                                    10
Grand Hoover Berhad (10493-P)                                                                                      Annual Report 2009
    Audit Committee Report

    A.   COMPOSITION

         The Audit Committee presently consists of three members, all of whom are Independent Non-Executive Directors:-

         Hj. Basar Bin Juraimi
         Chairman (Independent Non-Executive Director)

         Ir Hj Md Mazlan Bin Md Ismail Merican
         Member (Independent Non-Executive Director)

         Yap Chi Keong
         Member (Independent Non-Executive Director)



    B.   TERMS OF REFERENCE

    1.   Objective

         The objective of the Audit Committee is to assist the Board of Directors in meeting its responsibilities relating to accounting
         and reporting practices of the Company and its subsidiary companies.

         In addition, the Audit Committee shall:

         a)    Oversee and appraise the quality of the audits conducted both by the Company’s internal and external auditors;

         b)    Maintain open lines of communication between the Board of Directors, the internal auditors and the external auditors
               for the exchange of views and information, as well as to confirm their respective authority and responsibilities; and

         c)    Determine the adequacy of the Group’s administrative, operating and accounting controls.



    2.   COMPOSITION

         The Audit Committee shall be appointed by the Directors from among their members (pursuant to a resolution of the Board
         of Directors) which fulfils the following requirements: -

         a)    the audit committee members must be composed of no fewer than 3 members;

         b)    all the audit committee members must be non-executive directors, with a majority of them are independent directors;
               and

         c)    at least one member of the audit committee:-

               i)     must be a member of the Malaysian Institute of Accountants; or
               ii)    if he is not a member of the Malaysian Institute of Accountants, he must have at least 3 years’ working experience
                      and:-
                      •       he must have passed the examinations specified in Part 1 of the 1st Schedule of the Accountants Act
                              1967; or
                      •       he must be a member of one of the associations of accountants specified in Part II of the 1st Schedule of
                              the Accountants Act 1967; or
               iii)   must fulfill such other requirements as prescribed or approved by the Bursa Malaysia Securities Berhad from
                      time to time.




                                                                 11
Annual Report 2009                                                                                     Grand Hoover Berhad (10493-P)
   Audit Committee Report                                                                                           cont’d


   2.   COMPOSITION (CONT’D)

        The members of the Audit Committee shall elect a Chairman from among their members who shall be an independent
        director.

        If a member of the Audit Committee resigns, dies or for any other reason ceases to be a member resulting in the non-
        compliance of item 2 (a) to (c) above, the Board of Directors shall, within three months of that event, appoint new member(s)
        as may be required to comply with the above requirements.


   3.   FUNCTION

        The functions of the Audit Committee are as follows: -

        a)    Review with the external auditor, the audit plan;
        b)    Review with the external auditor, the evaluation of the system of internal controls;
        c)    Review with the external auditors, the audit report;
        d)    Review the assistance given by the Company’s employees to the external auditors;
        e)    Review the adequacy of scope, functions, competency and resources of the internal audit functions and that it has the
              necessary authority to carry out its work;
        f)    Review the internal audit programme, processes, the results of the internal audit programme, processes or investigation
              undertaken and whether or not appropriate action is taken on the recommendations of the internal audit function;
        g)    Review the quarterly results and year end financial statements, prior to the approval by the Board of Directors, focusing
              particularly on: -
              (i)    changes in or implementation of major accounting policy changes;
              (ii)   significant and unusual events; and
              (iii) compliance with accounting standards and other legal requirements;
        h)    Review any related party transaction and conflict of interest situation that may arise within the Company or Group
              including any transaction, procedure or course of conduct that raises questions of management integrity;
        i)    Review any letter of resignation from the external auditors;
        j)    Review whether there is reason (supported by grounds) to believe that the Company’s external auditor is not suitable
              for reappointment; and
        k)    Recommend the nomination of a person or persons as external auditors.


   4.   RIGHTS OF THE AUDIT COMMITTEE

        The Audit Committee shall, whenever necessary and reasonable for the Company to perform of its duties, in accordance
        with a procedure to be determined by the Board of Directors and at the cost of the Company: -

        a)    have authority to investigate any matter within its terms of reference;
        b)    have the resources which are required to perform its duties;
        c)    have full and unrestricted access to any information pertaining to the Company;
        d)    have direct communication channels with the external auditors and person(s) carrying out the internal audit function or
              activity;
        e)    be able to obtain independent professional or other advice; and
        f)    be able to convene meetings with the external auditors, the internal auditors or both, excluding the attendance of other
              directors and employees of the company, whenever deemed necessary.


   5.   MEETING

        The Audit Committee shall meet at least four times a year and such additional meetings as the Chairman shall decide in order
        to fulfill its duties. In addition, the Chairman may call a meeting of the Audit Committee if a request is made by any committee
        member, the Company’s Chief Executive, or the internal or external auditors.



                                                                     12
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Audit Committee Report                                                                                        cont’d


    5.   MEETING (CONT’D)

         The Company Secretary or other appropriate senior officer shall act as secretary of the Audit Committee and shall be
         responsible, in conjunction with the Chairman for drawing up the agenda and circulating it, supported by explanatory
         documentation to committee members prior to each meeting.

         The Secretary shall also be responsible for keeping the minutes of meetings of the Audit Committee, and circulating them to
         Committee members and to the other members of the Board of Directors.

         A quorum shall consist of a majority of independent directors.

         By invitation of the Audit Committee, the Company must ensure that other directors and employees attend any particular
         audit committee meeting specific to the relevant meeting.



    C.   DETAILS OF AUDIT COMMITTEE MEETING

         A total of five (5) Audit Committee meetings were held during the financial year under review.


          Audit Committee
          Members                     Attendance of Audit Committee Meeting for the Financial Year Ended 30 June 2009
                                         22 Aug          21 Oct           19 Nov        25 Feb          27 May
                                          2008            2008             2008          2009            2009           Total
          Hj Basar Bin Juraimi                             -                                                          4/5
          Ir Hj Md Mazlan Bin                                                                                        5/5
          Md Ismail Merican
          Yap Chi Keong                                                                                              5/5

         Note :  - Present



    D.   SUMMARY OF AUDIT COMMITTEE ACTIVITIES

         The activities undertaken by the Audit Committee for the financial year under review were as follows: -

         1.   Reviewed the audit plan with the external auditors;
         2.   Reviewed the audit report with the external auditors;
         3.   Reviewed the quarterly financial results announcements prior to the Board’s approval;
         4.   Reviewed the audited year end financial statements prior to the Board’s approval;
         5.   Reviewed any related party transactions; and
         6.   Recommended the appointment of the internal auditors.

    E.   INTERNAL AUDIT ACTIVITY

         The Internal Auditor has evaluated the system of internal controls of Grand Hoover Property Sdn Bhd and Heap Wah
         Enterprise Sdn Bhd and recommended improvements to the existing system of controls.

         The Management ensures that all the recommendations for improvement to the internal control system are satisfactorily
         implemented.




                                                                13
Annual Report 2009                                                                                  Grand Hoover Berhad (10493-P)
   Statement on Corporate Governance

   A.   INTRODUCTION

        The Board of Directors recognized the importance of corporate governance and is committed to ensure that high standards of
        corporate governance are practised throughout the Group as a fundamental part of discharging its duties and responsibilities
        to safeguard and enhance shareholders value and the financial performance of the Group.

        Although the Group does not fully meet the requirements of the Malaysian Code on Corporate Governance (“the Code”) at
        the end of the financial year, steps are now being taken to evaluate the status of the Group’s corporate governance practices
        and to implement the Code’s best practices. The Board of Directors would like to state that as a result of implementation of
        best practices recommended by the Code, operating costs would be increased in line with any action to mitigate risks.

        The Board is pleased to report on the manner in which the Group has implemented the Code and applied the Principles as
        set out in Part 1 of the Code and the extent of compliance with the Best Practices as set out in Part 2 of the Code.



   B.   DIRECTORS

        I.     The Board

               The Board has the overall responsibility for corporate governance, formulation of policies, strategic planning and
               overseeing the investment and business of the Group of companies as well as reviewing the adequacy and effectiveness
               of the internal control of the Group as a whole. The Board meets at least 4 times in each financial year with additional
               meetings convened as and when deemed necessary. All Board members bring an independent judgement to bear on
               issues of strategy, performance, resources and business ethics.

        II.    Board Composition

               There is balance in the Board as its Independent Non-Executive Directors are of the caliber and experience necessary
               to carry sufficient influence in Board decisions.

               The Board currently consists of six (6) members comprising an Executive Chairman, a Managing Director, an Executive
               Director and three (3) Independent Non-Executive Directors. There is a clear division of responsibility between the
               Executive Chairman and the Managing Director to ensure that there is a balance of power and authority. Together, the
               Directors bring a broad range of competencies, capabilities, technical skills, experiences and knowledge relevant to
               the business to ensure that the Group continues to be a competitive leader in the industry with a strong reputation for
               technical and professional competence.

               The Board complies with paragraph 15.02 of the Listing Requirements of Bursa Malaysia Securities Berhad which
               requires at least two Directors or one-third of the Board of the Company, whichever is the higher, are independent
               Directors and the recommendation of the Code where at least one-third of the Board comprises independent
               Directors.

               The Board is satisfied that the current composition reflects the interest of minority shareholders in the Company. Brief
               descriptions of the background of each Director are stated in the Profile of Directors shown on pages 7 to 9 of this
               Annual Report.

        III.   Directors’ Meeting

               During the financial period ended 30 June 2009, the Board met on five (5) occasions. Informal meetings and
               consultations were frequently and freely held to share expertise and experiences. Details of the attendance of the
               Directors at various meeting are set out below:-




                                                                     14
Grand Hoover Berhad (10493-P)                                                                                        Annual Report 2009
    Statement on Corporate Governance                                                                                  cont’d


    B.   DIRECTORS (CONT’D)

         III.   Directors’ Meeting (cont’d)


                 Name of Director                                                                    Attendance of Board Meeting

                 Dato’ Sim Chong Wan @ Sim Tan Beg                                                                  4/5
                 Sim Chong Leong                                                                                    5/5
                 Sim Cheng Young                                                                                    5/5
                 Hj. Basar Bin Juraimi                                                                              4/5
                 Ir Hj. Md Mazlan Bin Md Ismail Merican                                                             5/5
                 Yap Chi Keong                                                                                      5/5

         IV.    Supply of Information

                All directors are provided with an agenda, relevant reports and financial statements prior to each Board meeting.
                These are issued in sufficient time to enable the directors to obtain any further information and/or explanations when
                necessary.

                The Board and every member of the Board is authorised whenever necessary to obtain independent professional
                advice in the furtherance of their duties at the Group’s expense. All Directors have access to the advice and services
                of the Company Secretary appointed by the Board.

                Tuan Hj Basar Bin Juraimi has been appointed and acts as the Senior Independent Non-Executive Director to whom
                any concerns relating to the Group may be conveyed.

         V.     Appointments and Re-Election of Directors

                All proposals for appointments to the Board will be considered and evaluated by the Nominating Committee which
                will then recommend suitable candidates to be approved and appointed by the Board. The Company Secretary will
                ensure that all appointments are properly made, that all information necessary is obtained, as well as all legal and
                regulatory obligations are met.

                In accordance with Article 92 of the Company’s Articles of Association, one third of the Directors shall retire by rotation
                from office and be eligible for re-election at the annual general meeting. The Article also provides that all Directors shall
                retire from office at least once in every three years, but shall be eligible for re-election. Directors who are over the age
                of seventy years shall also retire from office and be eligible for reappointment of the annual general meeting pursuant
                to section 129(6) of the Companies Act, 1965.


         VI.    Directors’ Training

                As an integral element of the process of appointing new directors, the Board will ensure there is an induction programme
                for new directors. Directors will receive further training from time to time to comply with new laws and regulations. All
                Directors attended the Mandatory Accreditation Programme as required by the Bursa Malaysia Securities Berhad.

                In line with the continuous education programme requirement, those directors who were required to comply with the
                said requirement attended various accredited programmes conducted by various course leaders.The Board assumes
                the onus of determining or overseeing the training needs of the Directors on a continuous basis.




                                                                   15
Annual Report 2009                                                                                        Grand Hoover Berhad (10493-P)
   Statement on Corporate Governance                                                                                 cont’d


   B.   DIRECTORS (CONT’D)

        VI.   Directors’ Training (cont’d)

              During the financial year, the Directors attended training courses as follows:-


               Name                                   Training Course

               Sim Cheng Young                        Code of Corporate Compliance and Ethical Conduct
               Sim Chong Leong                        Investor Relations: Managing Strategic Issues In a Challenging Environment
               Dato’ Sim Chong Wan @                  Investor Relations: Managing Strategic Issues In a Challenging Environment
               Sim Tan Beg
               Hj Basar Bin Juraimi                   - ESQ Basic Training
                                                      - The Law of Domestic Inquiry: Procedure and Practice
               Ir Hj Md Mazlan Bin                    - Efficient Management of Electrical Energy Regulations 2008
               Md Ismail Merican                        Automatic Power Factor Regulator And its Relevance to Energy
                                                        Management In-House Energy Management and Audit
                                                      - Modern Internal Auditing for Directors, Audit Committee, Senior
                                                        Management and Auditors
               Yap Chi Keong                          Modern Internal Auditing for Directors, Audit Committee, Senior
                                                      Management and Auditors.



   C.   NOMINATING COMMITTEE (“NC”)

        The NC has held two meetings during the financial year ended 30 June 2009. The attendance of the members of the NC at
        the meeting is as follows:-


         Name of members                                                                           No. of meetings attended
         Ir. Hj Md Mazlan Bin Md Ismail Merican (Chairman)                                                       2
         Hj. Basar Bin Juraimi                                                                                   2
         Yap Chi Keong                                                                                           2

        The NC consists entirely of Independent Non-Executive Directors.

        Terms of Reference: -

        •     To nominate and recommend to the Board, appropriate candidates to be appointed as Director of the Company;
        •     To consider in making its recommendations, candidates for directorship proposed by the Managing Director or by any
              other senior executive or any director or shareholder;
        •     To recommend to the Board, directors to fill the vacancies on various Board committees;
        •     To assist the Board in its annual review of its required mix of skills and experience and other qualities, including core
              competencies which non-executive directors should bring to the Board; and
        •     To assist the Board in implementing an assessment programme to assess the effectiveness of the Board as a whole,
              the committees of the Board and the individual director on an annual basis.




                                                                     16
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Statement on Corporate Governance                                                                                 cont’d


    D.   REMUNERATION COMMITTEE (‘RC’)

         The RC has held one meeting during the financial year ended 30 June 2009. The attendance of the members of the RC at
         the meeting is as follows:-


          Name of members                                                                            No. of meetings attended

          Ir. Hj Md Mazlan Bin Md Ismail Merican (Chairman)                                                       1
          Hj. Basar Bin Juraimi                                                                                   1
          Sim Cheng Young                                                                                         1
          Yap Chi Keong                                                                                           1

         The RC consists of three Independent Non-Executive Directors and a Managing Director.

         Terms of Reference: -

         •       To recommend to the Board, the remuneration packages of all executive directors in all forms inclusive of cash and
                 non-cash benefits, options and privileges granted by the Company. The remuneration packages should be sufficient
                 to attract and retain the director needed to run the Company successfully;
         •       To review and recommend on an annual basis, all benefits and entitlements of all executive directors; and
         •       To establish a formal and transparent procedure for developing policy on executive remuneration for fixing the
                 remuneration packages of individual directors.

         The RC is empowered to establish a formal and transparent procedure for developing policies on executive remuneration
         and recommending the remuneration packages of individual directors. Nevertheless, the ultimate responsibility to approve
         any director’s remuneration is the Board and directors are required to abstain from participation in decisions on their own
         remuneration.

         Directors’ Remuneration

         The remunerations of the Executive Directors are to be structured so as to link rewards to corporate and individual performance
         and for Non-Executive Directors, the level of fees is or shall reflect the experience and level of responsibilities undertaken.

         Currently, the Executive Directors’ remuneration comprising basic salary which are reflective of the experience, level of
         responsibilities and performance. Benefits in kind such as company car and handphone are made available as appropriate.

         The details of the remuneration of the Directors of the Company from the Group for the financial year ended 30 June 2009
         including proposed directors fees are as follows:-


                                                                                          Executive               Non-Executive
                                                                                          Directors                 Directors
                                                                                            (RM)                      (RM)

          Fees                                                                                 -                       36,000
          Salary                                                                           480,000                        -
          Bonus                                                                                -                          -
          Allowance                                                                            -                       5,600
          EPF                                                                               28,800                        -
          Benefit-in-kind                                                                   39,100                        -
          Total                                                                            547,900                     41,600




                                                                 17
Annual Report 2009                                                                                     Grand Hoover Berhad (10493-P)
   Statement on Corporate Governance                                                                             cont’d


   D.   REMUNERATION COMMITTEE (‘RC’) (CONT’D)

        The number of directors whose remunerations falls within the following bands are as follows:-


                                                                                       Executive              Non-Executive
         Successive band of RM50,000                                                   Directors                Directors
         RM 0        – RM 50,000                                                            -                         3
         RM50,001 – RM100,000                                                               -                         -
         RM100,001 – RM150,000                                                              2                         -
         RM150,001 – RM200,000                                                              -                         -
         RM200,001 – RM250,000                                                              1                         -



   E.   RELATIONSHIP WITH SHAREHOLDERS

        I.    Dialogue between Company and Investors

              The Board places great importance of being transparent and accountable to its investors and as such has maintained
              an active and constructive communication policy that enables the Board and management to communicate effectively
              and on a timely basis with its investors, stakeholders and the public generally.

        II.   Annual General Meeting

              The Annual General Meeting is the principal forum for dialogue with shareholders. Notice of Annual General Meeting
              and related papers are sent out to shareholders at least 21 days before the date of the meeting. At each Annual
              General Meeting, shareholders are encouraged to participate in the question and answer session. Where appropriate,
              the Chairman of the Meeting will undertake to provide a written answer to any question that cannot be readily answered
              on the spot. However, any information, which may be regarded as undisclosed material information about the Group,
              will not be given to any single shareholder or shareholder group.


   F.   ACCOUNTABILITY AND AUDIT

        I.    Financial Reporting

              In presenting and reporting the annual audited financial statements and reports and the quarterly announcements to
              shareholders, the Board aims to present a balanced and understandable announcement of the Group’s position and
              prospects.

        II    Directors’ Responsibility Statement In Relation To The Financial Statements

              The Board is required to prepare financial statements in accordance with applicable approved accounting standards to
              give a true and fair view of the state of affairs of the Group and the Company as at the end of each financial year and
              of their results and cash flows for the financial year.

              In preparing the financial statements the Board has: -
              •     adopted suitable accounting policies and applied them accordingly;
              •     made judgements and estimates that are reasonable and prudent; and
              •     prepared financial statements on the going concern basis as the Board has a reasonable expectation, having
                    made enquiries, that the Group and the Company have adequate resources to continue in operational existence
                    in the foreseeable future.




                                                                   18
Grand Hoover Berhad (10493-P)                                                                                      Annual Report 2009
    Statement on Corporate Governance                                                                              cont’d


    F.   ACCOUNTABILITY AND AUDIT (CONT’D)

         II     Directors’ Responsibility Statement In Relation To The Financial Statements (cont’d)

                The Board is responsible for ensuring that the Company and the Group maintain accounting records that disclose with
                reasonable accuracy the financial position of the Company and the Group and which enables them to ensure that the
                financial statements comply with the provision of the Companies Act, 1965.

                The Board also has an overall responsibility to take reasonable steps to safeguard the assets of the Group and the
                Company and to prevent and detect fraud and other irregularities.

         III.   Internal Control

                The Statement on Internal Control is shown on page 20 of this Annual Report.

         IV.    Relationship with the auditors

                Key features underlying the relationship of the Audit Committee and the auditors are included in the terms of reference
                of the Audit Committee which are stated on pages 11 to 13 under the Audit Committee Report.



    G.   COMPLIANCE WITH THE CODE

         Save for the exception disclosed as follows, the Group has substantially complied with the Principles and Best Practices of
         the Code: -

         (a)    The Board is looking into formalising the succession planning process for senior management and reviewing and
                adopting a risk management and strategic plan for the Group.




                                                                 19
Annual Report 2009                                                                                    Grand Hoover Berhad (10493-P)
   Statement on Internal Controls

   INTRODUCTION

   The Malaysian Code on Corporate Governance requires listed companies to maintain a sound system of internal control to
   safeguard shareholders’ investments and the Group assets. The Bursa Malaysia Securities Berhad (“Bursa Securities”) Listing
   Requirements require directors of listed companies to include a statement in annual reports on the state of their internal controls
   as a Group.

   RESPONSIBILITY

   The Board recognises the importance of sound systems internal controls and risk management practices to good corporate
   governance. The Board affirms its overall responsibility for the Group’s system of internal control covering financial, operational,
   compliance controls and risk management, and for reviewing its adequacy and integrity.

   The Board is overall responsible for the Group’s systems of internal controls and is expected, in the discharge of its stewardship
   responsibilities for identifying the major risks faced by the Group and for determining the appropriate course of action to manage
   those risks.

   The Board undertook a more structured approach to formalise the existing procedures and processes in which risks were being
   identified, assessed, and reviewed so that they would be embedded into the Group’s business. In formulating the approach, the
   Board was guided by the “Statement on Internal Control: Guidance for Directors of Public Listed Companies” issued by the Task
   Force on Internal Control in February 2001. The guidance was used as reference to assist the Board in evaluating the adequacy
   and integrity of the Group’s system of internal control.

   The Group has embarked on continuous process of reviewing the adequacy and integrity of the Group’s system of internal
   controls.

   INTERNAL CONTROL SYSTEMS

   The internal control systems are designed to meet the Group’s needs and to manage any risk that the Group might be exposed to.
   Because of limitations that are inherent in systems of internal controls, such systems are designed to manage rather than eliminate
   the risk of failure to achieve corporate objectives. The systems can only provide reasonable and not absolute assurance against
   material misstatement or loss. The concept of reasonable assurance also recognises that the cost of control procedures should
   not exceed the expected benefits.

   The following are the key elements of the Group’s internal control systems: -

   •      The Group has defined delegation of authority with clear lines of responsibility. It sets out the appropriate approving
         authority at various levels of Management for decisions to be taken including matters that require Board approvals. These
         policies are reviewed regularly and updated when necessary.

   •     The Group has ensured that financial and operational policies and procedures are in place, like Quality Management Manual
         for the construction division which sets out standard procedures for its major divisions, for example, Contract Division,
         Project Division, Purchasing Division and Human Resource Division. The manual is subject to review from time to time.

   •     The internal control mechanism is embedded in various work processes at appropriate levels of the Group, like credit control
         and aging review of debtors and creditors.

   •     Regular performance reports provide management and the Board with comprehensive financial information on the Group’s
         performance.

   •     The Group has implemented budgetary controls for its projects.

   The Group’s internal audit function is outsourced to M/s. Sam & Co. Chartered Accountants, to assist the Board and the Audit
   Committee in providing independent assessment on the adequacy, efficiency and effectiveness of the Group’s internal control
   system.

   For the financial year ended 30 June 2009, the total costs incurred for the outsourced internal audit function is RM13,000.



                                                                     20
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Other Information
    During the financial year under review, there were no:

    i)     Share buy backs;
    ii)    Depository receipt programmes sponsored by the Company;
    iii)   Sanctions and / or penalties imposed on the Company and its subsidiaries, directors or management by the relevant
           regulatory bodies; save for a tax penalty imposed on a subsidiary of the Company by the Inland Revenue Board;
    iv)    Proceeds raised by the Company from any corporate proposal;
    v)     Profit guarantee given by the Company; and
    vi)    Options or convertible securities issued by the Company.

    DEVIATION IN RESULTS

    There is a deviation of more than 10% between the profit after tax and minority interest of RM2,008,000 stated in the unaudited results
    announced to Bursa Malaysia Securities Berhad on 28 August 2009 and the profit after tax and minority interest of RM1,734,000
    stated in the Audited Financial Statements of the Group for the year ended 30 June 2009. The reconciliation and explanation are set out
    below:-

                                                                                                               RM’000            RM’000

     Profit after tax and minority interest stated in the unaudited results                                                        2,008

     Add: Closing stock                                                                                              15
           Administrative expenses                                                                                   54
           Reversal of amortization of investment properties                                                         21
           Overprovision of taxation                                                                                 36              126

                                                                                                                                   2,134

     Less: Impairment loss for property, plant and equipment                                                       (266)
           Deferred taxation                                                                                       (107)
           Minority interest                                                                                        (27)             (400)

     Profit after tax and minority interest stated in the Audited Financial Statements                                             1,734


    NON-AUDIT FEES

    The non-audit fees paid to M/s. Kreston John & Gan during the financial year under review amounted to RM 7,000.

    MATERIAL CONTRACT INVOLVING DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

    There were no material contracts being entered into by the Company and / or its subsidiaries involving the directors and major
    shareholders’ interest subsisting at the end of the financial year or entered into since the end of previous financial year.




                                                                    21
Annual Report 2009                                                                                       Grand Hoover Berhad (10493-P)
   Other Information                                                                                                  cont’d


   RECURRENT RELATED PARTY TRANSACTION OF A REVENUE OR TRADING NATURE

   The Bursa Securities had on 28 March 2005 granted an exemption for the Company to comply with: -

   1.    Paragraph 10.08 of the Listing Requirements for transactions between Grand Hoover Berhad (“GHB”) or its subsidiaries and
         Heap Wah Enterprise Sdn Bhd (HWE) or Metro Sun Brickwork Sdn Bhd (MSB).

   2.    Paragraph 10.09 of the Listing Requirements for GHB to obtain shareholders’ mandate and/or renewal of mandate for GHB
         or its subsidiaries to enter into recurrent related party transactions of a revenue or trading nature with HWE or MSB and to
         provide financial assistance to HWE or MSB.

   Additional particulars of transactions involving directors’ and major shareholders’ interest are disclosed in Note 47 of the Financial
   Statements shown on pages 88 to 89.

   REVALUATION OF LANDED PROPERTIES

   The Group revalues its properties comprising land and buildings every five (5) years and at shorter intervals whenever the fair value
   of the revalued properties is expected to differ materially from their carrying value.

   CORPORATE SOCIAL RESPONSIBILITY

   The Group will continuously ensure that all activities relating to corporate social responsibility are considered and supported in its
   operations for the well being of stakeholders and the community.

   As part of effort towards the preservation of environment, the Group will ensure there are measures at the construction sites to
   prevent any adverse impact on the environment. The Group will also ensure priority will be given to environmental friendly material
   to be used in all the construction with balance of benefit and cost.

   The Group will also use recycle papers on the printing of annual report.




                                                                      22
Grand Hoover Berhad (10493-P)                                                                                          Annual Report 2009
Financial Statement

  24-27   Directors’ Report

  28-29   Independent Auditors’ Report
  30-31   Consolidated Balance Sheet

     32   Consolidated Income Statement

     33   Consolidated Statement of Changes in Equity

  34-35   Consolidated Cash Flow Statement

     36   Balance Sheet

     37   Income Statement

     38   Statement of Changes in Equity

     39   Cash Flow Statement

  40-90   Notes to the Financial Statements

     91   Statement by Directors

     91   Statutory Declaration
   Directors’ Report
   for the year ended 30th June 2009


   The directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for
   the financial year ended 30th June 2009.

   PRINCIPAL ACTIVITIES

   The Company is principally engaged in property and investment holding, whilst the principal activities of the subsidiary companies
   are set out in Note 9 to the financial statements. There have been no significant changes in the nature of these activities during
   the financial year.

   RESULTS


                                                                                                           Group         Company
                                                                                                              RM                RM
   Profit after taxation attributable to : -
   Equity holders of the Company                                                                        1,734,469        1,146,761
   Minority interest                                                                                      501,794                  -

   Profit for the financial year                                                                        2,236,263        1,146,761


   DIVIDENDS

   No dividends have been paid, declared or proposed by the Company since the end of the previous financial year. The directors
   also do not recommend any dividend payment in respect of the current financial year.



   RESERVES AND PROVISIONS

   There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in the
   financial statements.



   SHARE OPTIONS

   No options have been granted by the Company to any parties during the financial year to take up unissed shares of the
   Company.

   No shares have been issued during the financial year by virtue of the exercise of any option to take up unissued shares of the
   Company. At the end of the financial year, there were no unissued shares of the Company under options or Employees’ Share
   Option Scheme which has lapsed.



   DIRECTORS OF THE COMPANY

   The directors who served since the date of the last report are : -

   Dato’ Sim Chong Wan @ Sim Tan Beg
   Sim Cheng Young
   Sim Chong Leong
   Hj Basar Bin Juraimi
   Ir Hj Md Mazlan Bin Md Ismail Merican
   Yap Chi Keong




                                                                        24
Grand Hoover Berhad (10493-P)                                                                                       Annual Report 2009
    Directors’ Report
    for the year ended 30th June 2009                                                                               cont’d


    DIRECTORS OF THE COMPANY (CONT’D.)

    In accordance with Article 92 of the Company’s Articles of Association, Sim Cheng Young and Ir Hj Md Mazlan Bin Md Ismail
    Merican retire at the forthcoming Annual General Meeting and being eligible offer themselves for re-election.

    Dato’ Sim Chong Wan @ Sim Tan Beg will retire pursuant to Section 129(2) of the Companies Act, 1965 at the forthcoming Annual
    General Meeting and that a separate resolution will be proposed for his re-appointment as a director at the Annual General Meeting
    under the provision of Section 129(6) of the said Act to hold office until the next Annual General Meeting of the Company.



    DIRECTORS’ INTERESTS

    The directors holding office at the end of the financial year and their interests in the ordinary shares of the Company during the
    financial year ended 30th June 2009 as recorded in the Register of Directors’ Shareholdings were as follows : -

                                                                                Number of ordinary shares of RM1 each
                                                                           As at                                               As at
                                                                        1/7/2008           Bought               Sold       30/6/2009

    Direct interests
    Dato’ Sim Chong Wan @ Sim Tan Beg                                 13,068,637                   -                -     13,068,637
    Hj Basar Bin Juraimi                                                   10,666                  -                -          10,666
    Ir Hj Md Mazlan Bin Md Ismail Merican                                  10,666                  -                -          10,666

    Indirect interests
    Dato’ Sim Chong Wan @ Sim Tan Beg                                   2,333,333                  -                -       2,333,333
    Sim Cheng Young                                                   15,401,970                   -                -     15,401,970
    Sim Chong Leong                                                   15,401,970                   -                -     15,401,970

    By virtue of their interests in the shares of the Company, Dato’ Sim Chong Wan @ Sim Tan Beg, Sim Chong Leong and Sim Cheng
    Young are deemed to have an interest in the shares of the subsidiary companies during the financial year to the extent that Grand
    Hoover Berhad has an interest.


    DIRECTORS’ BENEFITS

    Since the end of the previous financial year, none of the directors of the Company have 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
    as shown in the financial statements) by reason of a contract made by the Company or a related corporation with the director or
    with a firm of which the director is a member, or with a company in which the director has a substantial financial interest except
    for any benefits which may deemed to have arisen by virtue of the significant related party transactions as disclosed in Note 47 to
    the financial statements.

    There were no arrangements during and at the end of the financial year which had the object of enabling the directors of the Company
    to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.




                                                                 25
Annual Report 2009                                                                                     Grand Hoover Berhad (10493-P)
   Directors’ Report
   for the year ended 30th June 2009                                                                                   cont’d


   OTHER STATUTORY INFORMATION

   Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps : -

   i)     to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for
          doubtful debts and have satisfied themselves that all known bad debts had been written off and that adequate provision had
          been made for doubtful debts; and

   ii)    to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the
          ordinary course of business had been written down to an amount which they might be expected so to realise.

   At the date of this report, the directors are not aware of any circumstances : -

   i)     that would render the amount written off for bad debts, or the amount of the provision for doubtful debts, in the Group and
          in the Company inadequate to any substantial extent; or

   ii)    that would render the value attributed to the current assets in the Group’s and in the Company’s financial statements
          misleading; or

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

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

   At the date of this report, there does not exist : -

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

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

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

   In the opinion of the directors, except for the effects arising from the change in accounting policies as disclosed in the financial
   statements, the results of the operations of the Group and of the Company for the financial year ended 30th June 2009 have not
   been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction
   or event occurred in the interval between the end of that financial year and the date of this report.




                                                                       26
Grand Hoover Berhad (10493-P)                                                                                            Annual Report 2009
    Directors’ Report
    for the year ended 30th June 2009                                                                           cont’d


    SIGNIFICANT EVENT

    Details of significant event are disclosed in Note 44 to the financial statements.



    AUDITORS

    The auditors, Kreston John & Gan, Chartered Accountants, have expressed their willingness to continue in office.



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




    Dato’ Sim Chong Wan @ Sim Tan Beg




    Sim Cheng Young




    Shah Alam,
    Date : 14th October 2009




                                                                  27
Annual Report 2009                                                                                  Grand Hoover Berhad (10493-P)
   Independent Auditors’ Report
   to members of Grand Hoover Berhad (Company No. 10493-P)


   REPORT ON THE FINANCIAL STATEMENTS

   We have audited the financial statements of Grand Hoover Berhad, which comprise the balance sheets as at 30th June 2009 of
   the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the
   Group and of the Company for the year then ended, and a summary of significant accounting policies and other explanatory notes,
   as set out on pages 30 to 90.

   Directors’ Responsibility for the Financial Statements

   The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance
   with Financial Reporting Standards and the Companies Act 1965 in Malaysia. This responsibility includes: designing, implementing
   and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material
   misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting
   estimates that are reasonable in the circumstances.

   Auditors’ Responsibility

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

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

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

   Opinion

   In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the
   Companies Act 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of
   30th June 2009 and of their financial performance and cash flows for the year then ended.



   REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

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

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

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




                                                                      28
Grand Hoover Berhad (10493-P)                                                                                          Annual Report 2009
    Independent Auditors’ Report
    to members of Grand Hoover Berhad (Company No. 10493-P)                                                   cont’d


    OTHER MATTERS

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




    Kreston John & Gan
    Chartered Accountants
    ( AF 0113 )




    Yapp Hock Hoe
    No. 723/03/10(J/PH)
    Partner




    Kuala Lumpur,
    Date : 14th October 2009




                                                              29
Annual Report 2009                                                                                Grand Hoover Berhad (10493-P)
   Consolidated Balance Sheet
   30th June 2009



                                                               Note        2009             2008
                                                                            RM               RM
                                                                                       (Restated)

   ASSETS

     Non-current Assets
     Property, plant and equipment                              6      5,485,673        5,395,289
     Investment properties                                      7      2,080,000        1,780,000
     Prepaid lease payments                                     8       409,059          416,160
     Goodwill on consolidation                                  10     1,435,803        1,435,803

                                                                       9,410,535        9,027,252


   Current Assets
     Property development costs                                 11    12,689,487        7,513,184
     Inventories                                                12     6,534,531        8,114,009
     Amount due from customers for contract works               13             -         305,258
     Trade receivables                                          14    12,996,902      28,217,858
     Accrued billings                                           15      184,699          468,722
     Other receivables, deposits and prepayments                16     8,947,943      15,304,846
     Tax recoverable                                                           -         121,784
     Deposits with licensed banks                               18       21,193         1,446,321
     Cash and bank balances                                            5,013,742        4,074,735

                                                                      46,388,497      65,566,717

   Total Assets                                                       55,799,032      74,593,969


   EQUITY AND LIABILITIES

   Equity
     Share capital                                              19    40,000,000      40,000,000
     Reserves                                                   20    (6,290,725)      (8,013,157)

   Equity attributable to equity holders of the Company               33,709,275      31,986,843
   Minority interest                                            21     6,212,752        5,772,758

                                                                      39,922,027      37,759,601


   Non-current Liabilities
     Deferred tax liabilities                                   22      243,500          147,200
     Borrowings                                                 23      392,393          263,738

                                                                        635,893          410,938




                                                          30
Grand Hoover Berhad (10493-P)                                                       Annual Report 2009
    Consolidated Balance Sheet
    30th June 2009                                                                                              cont’d


                                                                                           Note             2009             2008
                                                                                                             RM               RM
                                                                                                                       (Restated)

    Current Liabilities
      Amount due to customers for contract works                                            13                  -      1,432,891
      Trade payables                                                                        28       10,467,601       23,663,389
      Other payables and accruals                                                           29         4,388,010       5,445,194
      Borrowings                                                                            23           197,039       5,638,039
      Taxation                                                                                           188,462         243,917

                                                                                                     15,241,112       36,423,430

    Total Liabilities                                                                                15,877,005       36,834,368

    Total Equity and Liabilities                                                                     55,799,032       74,593,969




    The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                               31
Annual Report 2009                                                                                 Grand Hoover Berhad (10493-P)
   Consolidated Income Statement
   for the year ended 30th June 2009



                                                                                          Note             2009             2008
                                                                                                            RM               RM
                                                                                                                      (Restated)

   Revenue                                                                                 30       48,755,567       34,106,682
   Cost of sales                                                                           30       (39,255,765)     (27,578,957)

   Gross profit                                                                                       9,499,802        6,527,725

   Other income                                                                            31           576,663         199,321
   Distribution costs                                                                                  (672,953)        (600,056)
   Administrative expenses                                                                           (4,274,385)      (4,280,185)
   Other expenses                                                                                    (1,535,434)      (1,259,130)

   Profit from operations                                                                             3,593,693         587,675

   Finance costs                                                                           32           (53,863)        (226,899)

   Profit before taxation                                                                  33         3,539,830         360,776

   Taxation                                                                                36        (1,303,567)        (721,970)

   Profit /(Loss) for the year                                                                        2,236,263         (361,194)


   Attributable to : -

   Equity holders of the Company                                                                      1,734,469         (870,694)
   Minority interest                                                                                    501,794         509,500

                                                                                                      2,236,263         (361,194)


   Basic earnings /(loss) per share (sen)                                                  37              4.34             (2.18)




   The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                                   32
Grand Hoover Berhad (10493-P)                                                                                      Annual Report 2009
    Consolidated Statement of Changes in Equity
    for the year ended 30th June 2009



                                                   <-------------- Reserves -------------->
                                                   <- Non-Distributable ->
                                          Share         Share Revaluation Accumulated                         Minority
                                         capital    premium       reserves           losses         Total     interest Total equity
                                            RM            RM             RM             RM           RM           RM           RM

    Balance at 1st July 2007
    As previously reported            40,000,000    4,186,166    1,723,833       (12,883,589) 33,026,410     5,485,632 38,512,042
    Prior year adjustments
      (Note 38)                                -             -        (81,245)       (87,628)    (168,873)     (72,374)    (241,247)
    As restated                       40,000,000    4,186,166    1,642,588       (12,971,217) 32,857,537     5,413,258 38,270,795

    Net loss for the year                      -             -              -      (870,694)     (870,694)    509,500      (361,194)

    Dividends paid to minority
      shareholders                             -             -              -              -            -     (150,000)    (150,000)

    Balance at 30th June 2008         40,000,000    4,186,166    1,642,588       (13,841,911) 31,986,843     5,772,758 37,759,601


    Balance at 1st July 2008
    As previously reported            40,000,000    4,186,166    1,723,833       (13,773,426) 32,136,573     5,836,928 37,973,501
    Prior year adjustments
      (Note 38)                                -             -        (81,245)       (68,485)    (149,730)     (64,170)    (213,900)
    As restated                       40,000,000    4,186,166    1,642,588       (13,841,911) 31,986,843     5,772,758 37,759,601

    Net profit for the year                    -             -              -     1,734,469     1,734,469     501,794     2,236,263

    Dividends paid to minority
      shareholders                             -             -              -              -            -      (63,000)     (63,000)

    Effects of changes in tax rates
      on revaluation reserves                  -             -        (12,037)             -      (12,037)      1,200       (10,837)

    Realisation of revaluation
    reserve upon disposal of
    previously held subsidiary                 -             -   (1,010,060)      1,010,060             -            -            -

    Balance at 30th June 2009         40,000,000    4,186,166      620,491       (11,097,382) 33,709,275     6,212,752 39,922,027




    The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                                 33
Annual Report 2009                                                                                    Grand Hoover Berhad (10493-P)
   Consolidated Cash Flow Statement
   for the year ended 30th June 2009



                                                                                          Note             2009             2008
                                                                                                            RM               RM
                                                                                                                       (Restated)

   Cash flows from operating activities

   Profit before taxation                                                                             3,539,830          360,776

   Adjustments for : -

   Allowance for doubtful debts                                                                         218,995          251,678
   Allowance for doubtful debts written back                                                            (83,513)          (25,000)
   Amortisation of prepaid lease payments                                                                 7,101            9,600
   Bad debts written off                                                                                882,737          576,094
   Deposit forfeited                                                                                   (195,630)                -
   Depreciation of property, plant and equipment                                                        479,411          596,114
   Fair value adjustment                                                                                266,039                 -
   Gain on disposal of investment in a subsidiary                                                       (67,958)                -
   Gain on disposal of property, plant and equipment                                                    (84,999)          (64,500)
   Hibah earned                                                                                           (7,560)          (1,126)
   Interest expense                                                                                      53,863          226,899
   Interest income                                                                                        (4,922)         (44,241)
   Plant and equipment written off                                                                          223           27,064
   Reversal of accrued contract costs no longer required                                                (40,445)                -
   Tax penalty                                                                                            5,809                 -

   Operating profit before working capital changes                                                    4,968,981         1,913,358


   (Increase) /Decrease in property development costs                                                (4,815,186)         669,193
   (Increase) /Decrease in inventories                                                                1,579,478          (907,249)
   Decrease in amount due from contract customers                                                         1,197         1,311,169
   (Increase) /Decrease in trade receivables                                                            325,671        (2,516,390)
   (Increase) /Decrease in accrued billings                                                             284,023          (468,722)
   Decrease in other receivables, deposits and prepayments                                              425,296           94,911
   Decrease in amount due to contract customers                                                           (8,735)         (60,132)
   Increase /(Decrease) in trade payables                                                             4,210,272          (369,349)
   Increase /(Decrease) in other payables and accruals                                                 (847,758)         219,708

   Cash generated from /(used in) operations                                                          6,123,239          (113,503)

   Interest paid                                                                                        (53,863)         (226,899)
   Islamic bank financing expenses paid                                                                (165,487)          (94,413)
   Tax paid                                                                                          (1,334,007)         (525,541)
   Tax refund                                                                                            13,504            1,964

   Net cash from /(used in) operating activities carried forward                                      4,583,386          (958,392)




   The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                                   34
Grand Hoover Berhad (10493-P)                                                                                       Annual Report 2009
    Consolidated Cash Flow Statement
    for the year ended 30th June 2009                                                                           cont’d


                                                                                           Note             2009             2008
                                                                                                             RM               RM
                                                                                                                       (Restated)

    Net cash from /(used in) operating activities brought forward                                      4,583,386         (958,392)

    Cash flows from investing activities

    Proceeds from disposal of subsidiary, net of cash disposed                                           714,633                 -
    Interest received                                                                                      4,922           44,241
    Hibah earned                                                                                           7,560            1,126
    Proceeds from disposal of property, plant and equipment                                               85,000           64,500
    Purchase of property, plant and equipment                                               39          (266,233)         (43,180)

    Net cash from investing activities                                                                   545,882           66,687

                                                                                                       5,129,268         (891,705)


    Cash flows from financing activities

    Drawdown /(Repayment) of bankers' acceptances                                                     (1,078,000)        860,000
    Drawdown of Istisna Fund                                                                                    -        952,408
    Dividends paid to minority shareholders                                                              (63,000)        (150,000)
    Repayment of hire purchase liabilities                                                              (178,439)        (275,701)
    Repayment of Istisna Fund                                                                           (610,780)        (356,082)

    Net cash from /(used in) financing activities                                                     (1,930,219)      1,030,625

    Net increase in cash and cash equivalents                                                          3,199,049         138,920

    Cash and cash equivalents at the beginning of the year                                             1,767,092       1,628,172

    Cash and cash equivalents at the end of the year                                        40         4,966,141       1,767,092




    The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                                 35
Annual Report 2009                                                                                 Grand Hoover Berhad (10493-P)
   Balance Sheet
   30th June 2009



                                                                                          Note             2009             2008
                                                                                                            RM               RM
                                                                                                                      (Restated)

   ASSETS

     Non-current Assets
     Plant and equipment                                                                    6           230,888         277,303
     Investment properties                                                                  7         2,700,000        2,700,000
     Investment in subsidiaries                                                             9         6,741,942        6,741,942

                                                                                                      9,672,830        9,719,245


   Current Assets
     Other receivables, deposits and prepayments                                           16         8,760,674        8,932,095
     Amount due from subsidiary companies                                                  17         8,588,364        9,133,460
     Tax recoverable                                                                                    654,263         236,455
     Cash and bank balances                                                                             940,378           23,972

                                                                                                    18,943,679       18,325,982

   Total Assets                                                                                     28,616,509       28,045,227


   EQUITY AND LIABILITIES

   Equity
     Share capital                                                                         19       40,000,000       40,000,000
     Reserves                                                                              20       (15,850,876)     (16,997,637)

                                                                                                    24,149,124       23,002,363


   Current Liabilities
     Other payables and accruals                                                           29         2,709,009        2,843,538
     Amount due to subsidiary companies                                                    17         1,758,376        2,199,326

                                                                                                      4,467,385        5,042,864

   Total Equity and Liabilities                                                                     28,616,509       28,045,227




   The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                                   36
Grand Hoover Berhad (10493-P)                                                                                      Annual Report 2009
    Income Statement
    for the year ended 30th June 2009



                                                                                           Note             2009             2008
                                                                                                             RM               RM
                                                                                                                       (Restated)

    Revenue                                                                                 30         1,739,224         504,510
    Cost of sales                                                                           30           (45,483)         (37,866)

    Gross profit                                                                                       1,693,741         466,644

    Other income                                                                            31             1,000                 -
    Administrative expenses                                                                             (445,950)        (503,382)
    Other expenses                                                                                      (118,573)      (3,072,935)

    Profit /(Loss) from operations                                                                     1,130,218       (3,109,673)

    Finance costs                                                                           32           (37,457)         (43,686)

    Profit /(Loss) before taxation                                                          33         1,092,761       (3,153,359)

    Taxation                                                                                36            54,000          (54,000)

    Net profit /(loss) for the year                                                                    1,146,761       (3,207,359)




    The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                               37
Annual Report 2009                                                                                 Grand Hoover Berhad (10493-P)
   Statement of Changes in Equity
   for the year ended 30th June 2009



                                                                               <---------- Reserves ---------->
                                                                                       Non-
                                                                               Distributable
                                                                     Share            Share     Accumulated
                                                                    capital        premium           losses               Total
                                                                        RM               RM                RM               RM

   Balance at 1st July 2007
   As previously reported                                       40,000,000         4,186,166      (18,229,229)      25,956,937
   Prior year adjustments (Note 38)                                        -                -         252,785           252,785
   As restated                                                  40,000,000         4,186,166      (17,976,444)      26,209,722

   Net loss for the year                                                   -                -       (3,207,359)      (3,207,359)

   Balance at 30th June 2008                                    40,000,000         4,186,166      (21,183,803)      23,002,363


   Balance at 1st July 2008
   As previously reported                                       40,000,000         4,186,166      (21,488,328)      22,697,838
   Prior year adjustments (Note 38)                                        -                -         304,525           304,525
   As restated                                                  40,000,000         4,186,166      (21,183,803)      23,002,363

   Net profit for the year                                                 -                -       1,146,761         1,146,761

   Balance at 30th June 2009                                    40,000,000         4,186,166      (20,037,042)      24,149,124




   The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                                   38
Grand Hoover Berhad (10493-P)                                                                                     Annual Report 2009
    Cash Flow Statement
    for the year ended 30th June 2009



                                                                                           Note             2009             2008
                                                                                                             RM               RM
                                                                                                                       (Restated)

    Cash flows from operating activities

    Profit /(Loss) before taxation                                                                     1,092,761       (3,153,359)

    Adjustments for : -

    Bad debts written off                                                                                 60,000            2,653
    Depreciation of plant and equipment                                                                   58,573           63,360
    Dividend income                                                                                   (1,553,464)        (411,486)
    Gain on disposal of investment in a subsidiary                                                         (1,000)               -
    Impairment loss on investment in subsidiaries                                                               -      3,000,000
    Interest expenses                                                                                     37,457           43,686
    Plant and equipment written off                                                                             -           6,923
    Tax penalty                                                                                            5,809                 -

    Operating loss before working capital changes                                                       (299,864)        (448,223)

    Decrease in other recceivables, deposits and prepayments                                             111,421           17,386
    Increase /(Decrease) in other payables and accruals                                                 (134,529)        499,438

    Cash generated from /(used in) operations                                                           (322,972)          68,601

    Tax paid                                                                                            (369,617)         (61,486)
    Interest paid                                                                                        (37,457)         (43,686)

    Net cash used in operating activities                                                               (730,046)         (36,571)


    Cash flows from investing activities

    Dividends received                                                                                 1,553,464         411,486
    Proceeds from disposal of investment in subsidiary                                                     1,000                 -
    Purchase of plant and equipment                                                         39           (12,158)                -
    Repayment from subsidiary companies                                                                  545,096         977,388

    Net cash from investing activities                                                                 2,087,402       1,388,874

                                                                                                       1,357,356       1,352,303


    Cash flows from financing activity

    Repayment to subsidiary companies                                                                   (440,950)      (1,479,477)

    Net increase /(decrease) in cash and cash equivalents                                                916,406         (127,174)

    Cash and cash equivalents at the beginning of the year                                                23,972         151,146

    Cash and cash equivalents at the end of the year                                        40           940,378           23,972



    The above consolidated balance sheet is to be read in conjunction with the notes to the financial statements on pages 40 to 90




                                                               39
Annual Report 2009                                                                                 Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009


   1.   PRINCIPAL ACTIVITIES AND CORPORATE INFORMATION

        The Company is principally engaged in property and investment holding, whilst the principal activities of the subsidiary
        companies are set out in Note 9 to the financial statements.

        The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market
        of the Bursa Malaysia Securities Berhad.

        The address of the Company’s registered office and principal place of business is as follows : -

        No. 63-G, Jalan Anggerik Vanilla T31/T, Kota Kemuning, Section 31
        40460 Shah Alam, Selangor Darul Ehsan



   2.   BASIS OF PREPARATION OF FINANCIAL STATEMENTS

        The financial statements of the Group and of the Company comply with the applicable approved Financial Reporting
        Standards issued by the Malaysian Accounting Standards Board and the provisions of the Companies Act, 1965.

        The Group and the Company have not early adopted the following new and revised FRSs and Interpretations, which were
        issued but not effective for the financial year ended 30th June 2009 : -


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

         FRS 4:                       Insurance Contracts                                                  1st January 2010
         FRS 7:                       Financial Instruments: Disclosures                                   1st January 2010
         FRS 8:                       Operating Segments                                                   1st July 2009
         FRS 123:                     Borrowings Costs                                                     1st January 2010
         FRS 139:                     Financial Instruments: Recognition and Measurement                   1st January 2010
         Amendment to FRS 1:          First-time Adoption of Financial Reporting Standards and FRS         1st January 2010
                                      127 Consolidated and Separate Financial Statements: Cost of an
                                      Investment in a Subsidiary, Jointly Controlled Entity or Associate
         Amendment to FRS 2
         Share-based Payment:         Vesting Conditions and Cancellations                                 1st January 2010
         IC Interpretation 9:         Reassessment of Embedded Derivatives                                 1st January 2010
         IC Interpretation 10:        Interim Financial Reporting and Impairment                           1st January 2010
         IC Interpretation 11:        FRS 2 – Group Treasury Share Transactions                            1st January 2010
         IC Interpretation 13:        Customer Loyalty Programmes                                          1st January 2010
         IC Interpretation 14:        FRS 119 – The Limit on a Defined Benefit Asset, Minimum              1st January 2010
                                      Funding Requirements and their Interaction

        The new FRSs, Amendments to FRSs and Interpretations above are expected to have no significant impact on the financial
        statements of the Group and of the Company upon their initial application except for the changes in disclosures arising from
        the adoption of FRS 7 and FRS 139.

        The Group and the Company are exempted from disclosing the possible impact, if any, to the financial statements upon the
        initial application of FRS 7 and FRS 139.




                                                                   40
Grand Hoover Berhad (10493-P)                                                                                      Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                cont’d


    2.   BASIS OF PREPARATION OF FINANCIAL STATEMENTS (CONT’D)

         FRS 8 will become effective for financial statements for the year ending 30th June 2011. FRS 8, which replaces FRS 114,
         Segment Reporting, requires identification and reporting of operating segments based on internal reports that are regularly
         reviewed by the entity’s chief operating decision maker in order to allocate resources to the segment and to assess its
         performance. Currently, the Group presents segment information in respect of its business segments (see Note 41). Under
         FRS 8, the Group will continue to present segment information in respect of its current business segments.



    3.   FINANCIAL RISK MANAGEMENT POLICIES

         The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the
         development of the Group’s businesses whilst managing its risks.

         The main areas of financial risks faced by the Group and the policy in respect of the major areas of treasury activity are set
         out as follows : -

         a)   Interest rate risk

              The Group’s policy is to borrow principally on a floating rate basis but to retain a proportion of fixed rate debt. The
              objectives for the mix between fixed and floating rate borrowings are to reduce the impact of an upward change
              in interest rates while enabling benefits to be enjoyed if interest rates fall. The mix between fixed and floating rate
              borrowings are monitored and varied according to changes in interest rates to ensure that the Group’s cost of financing
              is kept at the lowest possible.

              The Group does not generally hedge interest rate risks. Hedging of risk through the use of financial instruments may
              be adopted should its use results in significant cost savings. The Group has a policy to ensure that the rates obtained
              are competitive.

         b)   Credit risk

              The credit risk is controlled by the application of credit approvals, limits and monitoring procedures. The Group has an
              internal credit review which is conducted if the credit risk is material. Trade receivables are monitored on an ongoing
              basis via Group management reporting procedures.

              The Group does not have any significant exposure to any individual nor does it have any major concentration of credit
              risk related to any financial instruments other than as disclosed in Note 46(b) to the financial statements.

         c)   Market risk

              In respect of the Group’s property development activities, market risk arises from changes in the state of domestic
              property demand, prices, the cost of building materials and other related costs in property development.



              The Group continues to concentrate on development projects in carefully selected location and this strategy has
              resulted in resilience against any downswings of the property sector.

         d)   Operational risk

              The operational risk arises from the daily activities of the Group which includes legal, credit reputation and financing
              risk and other risks associated to daily running of its business operations.

              Such risks are mitigated through proper authority levels of approval limits, clear reporting structure, segregation of
              duties, policies and procedures implemented and periodic management meetings.



                                                                41
Annual Report 2009                                                                                   Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                       cont’d


   3.   FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)

        d)   Operational risk (cont’d)

             In dealing with its stewardship, the directors recognise that effective risk management is an integral part of good
             business practice.

             The directors will pursue an ongoing process of identifying, assessing and managing key business areas, overall
             operational and financial risks faced by the business units as well as regularly reviewing and enhancing risk mitigating
             strategies with its appointed and key management personnel.

        e)   Liquidity and cash flow risks

             The Group is actively managing its operating cash flow to suit the debt maturity so to ensure all commitments and
             funding needs are met. As part of the overall liquidity management, it is the Group’s policy to ensure continuity in
             servicing its cash obligations in the future by forecasting its cash commitments and maintaining sufficient levels of cash
             or cash equivalents to meet its working capital requirements. In addition, the Group also maintains available banking
             facilities sufficient to meet its operational needs.



   4.   SIGNIFICANT ACCOUNTING POLICIES

        All significant accounting policies set out below are consistent with those applied in the previous financial year, unless
        otherwise stated.

        a)   Accounting convention

             The financial statements of the Group and of the Company have been prepared under the historical cost convention
             unless otherwise indicated in the significant accounting policies.

        b)   Basis of consolidation

             Subsidiary is enterprise controlled by the Company. Control exists when the Company has the power, directly or indirectly
             to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. The financial
             statements of subsidiary are included in the consolidated financial statements from the date that control effectively
             commences until the date that control effectively ceases. Subsidiary is consolidated using the acquisition method of
             accounting in accordance with FRS 127, Consolidated Financial Statements and Investment in Subsidiaries.

             A subsidiary is excluded from consolidation when control is intended to be temporary if the subsidiary is acquired and
             held exclusively with a view of its subsequent disposal in the near future and it has not previously been consolidated
             or it operates under severe long term restrictions which significantly impair its ability to transfer funds to the Company.
             Subsidiaries excluded on these grounds are accounted for as investment.

             Under the acquisition method of accounting, the results of subsidiaries acquired or disposed during the year are
             included from the date of acquisition or up to the date of disposal. At the date of acquisition, the fair values of the
             subsidiaries net assets are determined and these values are reflected in the Group’s financial statements. The excess
             of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired at the date of
             acquisition is reflected as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary
             acquired, the difference is recognised directly in the income statement.

             Intragroup transactions and balances and the resulting unrealised profits are eliminated on consolidation. Unrealised
             losses resulting from intragroup transactions are also eliminated unless cost cannot be recovered.




                                                                      42
Grand Hoover Berhad (10493-P)                                                                                             Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                     cont’d


    4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

         b)   Basis of consolidation (cont’d)

              The gain or loss on disposal of a subsidiary, which is the difference between the net disposal proceeds and the Group’s
              share of its net assets as of the date of disposal including the carrying amount of goodwill that relate to the subsidiary
              is recognised in the consolidated income statement.

              Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. It is
              measured at the minorities’ share of the fair value of the subsidiaries’ identifiable assets and liabilities at the acquisition
              date and the minorities’ share of changes in the subsidiaries’ equity since then.

         c)   Subsidiaries

              Investment in subsidiaries are stated at Directors’ valuation conducted in 1996 based on the net tangible assets value
              of the subsidiaries. The valuation was carried out primarily for the purpose of issuing bonus shares then and was not
              intended to effect a change in the accounting policy for investments, which are stated at cost. Where an indication of
              impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable
              amounts.

         d)   Goodwill on consolidation

              Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of business
              combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities.
              Following the initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not
              amortised but instead, it is reviewed for impairment, annually or more frequently if events or changes in circumstances
              indicate that the carrying value may be impaired. Gains and losses on the disposal of an entity include the carrying
              amount of goodwill relating to the entity sold.

         e)   Property, plant and equipment and depreciation

              Property, plant and equipment except for freehold land is stated at cost/valuation less accumulated depreciation and
              impairment losses, if any.

              The Group revalues its properties comprising land and buildings every five (5) years and at shorter intervals whenever
              the fair value of the revalued properties is expected to differ materially from their carrying value.

              Surpluses arising from revaluation are dealt with in the property revaluation reserve account. Any deficit arising is offset
              against the revaluation reserve to the extent of a previous increase for the same property. In all other cases, a decrease
              in carrying amount is charged to the income statement.

              Property, plant and equipment retired from active use and held for disposal are stated at the lower of net book value
              and net realisable value. Freehold land is stated at valuation and is not amortised.

              The straight-line method is used to write off the cost of the other assets over the term of their estimated useful lives at
              the following principal annual rates : -


                                                                                                                           Rate %

               Buildings                                                                                                       2
               Office equipment, furniture and fittings and renovation                                                        10
               Plant, machinery, tools and equipment                                                                        10 -20
               Motor vehicles                                                                                                 20



                                                                  43
Annual Report 2009                                                                                       Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                    cont’d


   4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

        e)   Property, plant and equipment and depreciation (Cont’d.)

             The residual values, useful life and depreciation method are reviewed at each financial year end to ensure that the
             amount, method and period of depreciation are consistent with previous estimates and the expected pattern of
             consumption of the future economic benefits embodied in the items of property, plant and equipment.

             An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
             expected from its use or disposal. The difference between the net disposal proceeds, if any and the net carrying
             amount is recognised in income statement.

        f)   Investment property

             Investment properties are properties which are held either to earn rental income or for capital appreciation or for both.
             Such properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment
             properties are stated at fair value. Fair value is arrived at by reference to market evidence of transaction prices for
             similar properties and is performed by registered independent valuers having an appropriate recognised professional
             qualification and recent experience in the location and category of the properties being valued.

             Gain or losses arising from changes in the fair values of investment properties are recognised in profit or loss in the year
             in which they arise.

             Investment properties are derecognised when either they have been disposed of or when the investment property is
             permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on
             the retirement or disposal of an investment property are recognised in the income statement in the year in which they
             arise.

             In prior years, investment properties are measured initially at cost, including transaction costs. Subsequent to initial
             recognition, whereby under the cost model and in accordance with FRS 116, investment properties except for freehold
             land are stated at valuation less accumulated depreciation and impairment losses, if any. Freehold land is stated at
             valuation and is not amortised. The straight line method is used to write off the valuation of the building over the term
             of their estimated useful lives at principal annual rate of 2%. The Group revalues its buildings every five (5) years and
             at shorter intervals whenever the fair value of the revalued buildings is expected to differ materially from their carrying
             value. Surpluses arising from revaluation are dealt with in the property revaluation reserve account. Any deficit arising
             is offset against the revaluation reserve to the extent of a previous increase for the same property. In all other cases, a
             decrease in carrying amount is charged to the income statement.

             This change in accounting policy has been accounted for retrospectively and the effects are dealt with as prior year
             adjustments as stated in Note 38 to the financial statements.

        g)   Leases

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

                   Assets acquired by way of hire purchase or finance leases are stated at an amount equal to the lower of their fair
                   values and the present value of the minimum lease payments at the inception of the leases, less accumulated
                   depreciation and impairment losses. The corresponding liability is included in the balance sheet as borrowings.
                   In calculating the present value of the minimum lease payments, the discount factor used is the interest rate
                   implicit in the lease, when it is practicable to determine; otherwise, the Group’s and the Company’s incremental
                   borrowing rate is used.

                                                                     44
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                 cont’d


    4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

         g)   Leases (cont’d)

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

              ii)    Operating lease
                     For operating leases, the leased assets are not recognised on the Group’s balance sheet. Property interest held
                     under an operating lease, which is held to earn rental income or for capital appreciation or both, is classified as
                     investment property.

                     Leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee by
                     the end of the lease term is treated as an operating lease. The payment made on entering into or acquiring a
                     leasehold land is accounted for as prepaid lease payments, except for leasehold land classified as investment
                     property.

                     The leasehold land was revalued in 11th October 2006 and the Group has retained the unamortised revalued
                     amount as the surrogate carrying amount of prepaid lease payments in accordance with transitional provision in
                     FRS 117, Leases.

                     Payments made under operating leases are recognised in the income statements on a straight-line basis over
                     the term of the lease. Lease incentive received are recognised as an integral part of the total lease expense, the
                     term of the lease.

         h)   Property development

              Property development is stated at cost and consists of land and development expenditure and includes borrowing
              costs relating to the financing of the land and development less impairment losses.

              No depreciation is provided for property development.

              The property development classified as non-current asset where no development activities have been carried out or
              where development activities are not expected to be completed within the normal operating cycle.

              The property development projects on which development activities have commenced and expected to be completed
              within the normal operating cycle are treated as current assets.

              When the outcome of a development project cannot be estimated reliably, project revenue are recognised only to the
              extent of project costs incurred that it is probable to be recoverable and development expenditure on the development
              units sold are recognised as an expense in the period in which they are incurred.

              When it is probable that total development expenditure will exceed total project revenue, the expected loss is recognised
              as an expense immediately.

              When the outcome of a development project can be estimated reliably, development revenue and expenditure
              associated with the development project are recognised as revenue and expenses respectively by reference to the
              stage of completion of the property development activity at the balance sheet date.




                                                                45
Annual Report 2009                                                                                    Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                 cont’d


   4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

        h)   Property development (cont’d)

             The stage of completion of a development project is measured by reference to the percentage of survey of work
             performed for each project. The cost of land held for development together with the related development expenditures
             are carried forward at cost plus profit accrued according to the appropriate stage of completion less provision for
             foreseeable loss, if any. Development expenditure consists of construction and other related development costs
             including interest expenses and operating overheads relating to the project from commencement to the completion of
             development.

             The excess of revenue recognised in the income statement over billings to purchaser is classified as accrued billings
             within trade receivables and the excess of billings to purchasers over revenue recognised in the income statement is
             classified as progress billings within trade payables.

        i)   Inventories

             Inventories, which comprise finished goods and consumable stores, are stated at the lower of cost and net realisable
             value with weighted average cost being the main basis for cost. Cost comprises actual cost of purchases and incidental
             costs of bringing the inventories to their present location and condition. Net realisable value is the estimated selling
             price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to
             make the sales.

        j)   Amount due from/(to) contract customers

             Amount due from contract customers on construction contracts is stated at cost plus recognised profits (less
             recognised losses) and less progress billings. Cost includes all direct construction costs and other related costs.
             Where progress billings exceed costs incurred plus recognised profits (less recognised losses), the balance is shown
             as amounts due to contract customers.

        k)   Assets acquired under hire-purchase and lease agreements

             Assets financed by hire-purchase and lease arrangements which transfer substantially all the risks and rewards of
             ownership to the Group are capitalised as property, plant and equipment and the corresponding obligations are treated
             as liabilities. The property, plant and equipment capitalised are depreciated on the same basis as owned assets.

             Finance charges are allocated to the income statement over the period of the agreements to give a constant periodic
             rate of charge on the remaining hire-purchase and lease liabilities.

        l)   Receivables

             Receivables are carried at estimated realisable value. An estimate is made for doubtful receivables based on a review
             of all outstanding amounts at the financial year end. Bad debts are written off during the financial year in which they
             are identified.




                                                                   46
Grand Hoover Berhad (10493-P)                                                                                       Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                cont’d


    4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

         m)   Impairment of assets

              The carrying amount of the Group’s and of the Company’s assets other than inventories, deferred tax asset and
              financial assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If
              any such indication exists, the asset’s recoverable amount is estimated and an impairment loss is recognised whenever
              the recoverable amount is less than the carrying amount of the asset. The impairment loss is recognised in the income
              statement immediately except for the impairment on a revalued asset where the impairment loss is recognised directly
              against the revaluation surplus account to the extent of the surplus credited from the previous revaluation for the same
              assets with the excess of the impairment loss charged to the income statement. All reversals of an impairment loss are
              recognised as income immediately in the income statement except for the reversal of an impairment loss on revalued
              assets where the reversal of the impairment loss is treated as revaluation increase and credited to the revaluation
              surplus account of the same asset.

         n)   Employee benefits

              i)     Short term benefits
                     Salaries, wages, paid annual leave and sick leave, bonuses, commission, incentive and non-monetary benefits
                     are accrued in the period in which the associated services are rendered by employees of the Group. Short term
                     accumulating compensated absences such as paid annual leave are recognised when services are rendered by
                     employees that increase their entitlement to future compensated absences, and short term non-accumulating
                     compensated absences such as sick leave are recognised when the absences occur.

              ii)    Defined contribution plans
                     As required by law, companies in Malaysia make contributions to the state pension scheme, the Employees
                     Provident Fund (“EPF”). Such contributions are recognised as an expense in the income statement as incurred.

              iii)   Share-based compensation
                     The employee’s share option scheme allows the Group’s eligible employees to acquire shares of the Company.
                     No compensation cost or obligation is recognised. When the options are exercised, equity is increased by
                     amount of the proceeds received.

         o)   Revenue

              i)     Sale of properties
                     Revenue from sale of properties under development is accounted for by the stage of completion method as
                     described in Note 4(h)

                     Revenue from sale of land and completed properties are recognised upon the finalisation of sale and purchase
                     agreements and when the risks and rewards of ownership have passed.

              ii)    Construction contracts
                     Revenue from fixed price construction contracts is recognised on the percentage of completion method,
                     measured by reference to the proportion that contract costs incurred for contract work performed to date that
                     reflected work performed bear to the total estimated contract costs.

                     When the outcome of a construction contract cannot be estimated reliably, revenue is recognised only to the
                     extent of contract costs incurred that is probable will be recoverable and contract costs are recognised as an
                     expense in the year in which they are incurred.

                     An expected loss on a contract is recognised immediately in the income statement.




                                                               47
Annual Report 2009                                                                                   Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                   cont’d


   4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

        o)   Revenue (Cont’d.)

             iii)   Goods sold
                    Revenue from sale of goods is measured at the fair value of the consideration receivable and is recognised in the
                    income statement when the significant risks and rewards of ownership have been transferred to the buyer.

             iv)    Dividend income
                    Dividend income is recognised when the right to receive payment is established.

             v)     Rental income
                    Rental income is recognised on an accrual basis.

             vi)    Interest income
                    Interest income is recognised in the income statement as it accrues taking into financial statements the effective
                    yield on the assets.

             vii)   Insurance commission
                    Insurance commission is recognised on the issuance of debit notes which are approximate to be the effective
                    commencement or renewal dates of related policies when the services are rendered.

        p)   Borrowing costs

             All interest and other costs incurred in connection with borrowings are expensed as incurred. The interest component
             of hire purchase payments is recognised in the income statement so as to give a constant periodic rate of interest on
             the outstanding liability at the end of each accounting period.

             Costs incurred on borrowings to finance a qualifying asset is capitalised until the asset is ready for their intended use
             after which such expense is charged to the income statement. All other borrowing costs are charged to the income
             statement.

        q)   Tax expense

             Tax expense comprises current and deferred tax. Tax expense is recognised in the income statement except to the
             extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

             Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
             enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

             Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying
             amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes. Deferred tax is
             not recognised for the following temporary differences: the initial recognition of goodwill and temporary differences that
             effects neither accounting nor taxable profit/(tax loss). Deferred tax is measured at the tax rates that are expected to
             be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively
             enacted by the balance sheet date.

             Deferred tax liability is recognised for all taxable temporary differences.

             A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against
             which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced
             to the extent that it is no longer probable that the related tax benefit will be realised.




                                                                     48
Grand Hoover Berhad (10493-P)                                                                                        Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                    cont’d


    4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

         r)   Non-current assets (or disposal groups) held for sale and discontinued operations

              Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally
              through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is
              highly probable and the asset (or disposal group) is available for immediate sale in its present condition subject only to
              terms that are usual and customary.

              Immediately before classification as held for sale, the measurement of the non-current assets (or all the assets and
              liabilities in a disposal group) is brought up-to-date in accordance with applicable FRSs. Then, on initial classification as
              held for sale, non-current assets or disposal groups (other than investment properties, deferred tax assets, employee
              benefits assets and financial assets) are measured in accordance with FRS 5 that is at lower of carrying amount and
              fair value less costs to sell. Any differences are included in profit or loss.

              A component of the Group is classified as a discontinued operation when the criteria to be classified as held for
              sale have been met or it has been disposed and such a component represents a separate major line of business
              or geographical area of operations, is part of a single co-ordinated major line of business or geographical area of
              operations or is a subsidiary acquired exclusively with a view to resale.

         s)   Foreign currencies

              i)     Functional and presentation currency
                     The individual financial statements of each entity in the Group are measured using the currency of the primary
                     economic environment in which the entity operates (“the functional currency”). The consolidation financial
                     statements are presented in Ringgit Malaysia (RM), which is also the Company’s functional currency.

              ii)    Foreign currency transaction
                     Transactions in foreign currencies are converted into Ringgit Malaysia at the rate of exchange ruling on transaction
                     dates. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated
                     into Ringgit Malaysia at the approximately rates of exchange at the balance sheet date except where there are
                     related or matching forward contracts in respect of trading transactions, in which case, the rates of exchange
                     specified in those contracts are used.

                     All gains or losses from currency transaction are taken up in the income statement.

         t)   Cash and cash equivalents

              Cash and cash equivalents comprise of cash in hand, balances and deposits with banks and other financial institutions,
              fixed deposits pledged to financial institutions, deposits with Housing Development Account, bank overdrafts and
              short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to
              an insignificant risk of changes in value.

         u)   Provisions

              Provisions are recognised when there is a present obligation, legal or constructive, as a result of a past event, when it
              is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
              reliable estimate can be made of the amount of the obligation.




                                                                 49
Annual Report 2009                                                                                       Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                          cont’d


   4.   SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

        v)    Contingent liabilities and contingent assets

              The Group does not recognise a contingent liability but discloses its existence in the financial statements. A contingent
              liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or
              non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that
              is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A
              contingent liability also arises in the extremely rare case where there is a liability that cannot be recognised because it
              cannot be measured reliably.

              A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the occurrence
              or non-occurrence of one of more uncertain future events beyond the control of the Group. The Group does not
              recognise contingent assets but discloses its existence where inflows of economic benefits are probable, but not
              virtually certain.

        w)    Financial instrument

              Financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or
              equity instrument of another enterprise.

              Financial asset is any asset that is cash, a contractual right to receive cash or another financial asset, contractual
              right to exchange financial instruments from other enterprises under conditions that are potentially favourable or an
              equity instrument of other enterprise, whilst financial liability is any liability that is a contractual obligation to deliver cash
              or another financial asset to another enterprises or to exchange financial instruments with another enterprise under
              conditions that are potentially unfavourable.

        x)    Equity instruments

              Ordinary shares are classified as equity in the balance sheet. Costs directly attributable to the issuance of new equity
              shares are taken to equity as a deduction, net of tax, from the proceeds. Dividends on ordinary shares are recognised
              in equity in the period in which they are declared.

        y)    Disclosures of fair values

              The fair values of the financial assets and liabilities maturing within 12 months are stated at approximately the carrying
              value as at the balance sheet date.

              The fair values of quoted investments are estimated based on quoted market prices. For investments for which there
              are no quoted market prices, a reasonable estimate of fair value could not be made without incurring excessive costs.
              Therefore, such investments are valued at cost subject to review for impairment.

        z)    Earnings per share

              The Group presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the
              profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares
              outstanding during the period.

        aa)   Segment reporting

              A segment is a distinguishable component of the Group that is engaged either in providing products or services
              (business segment), or in providing products or services within a particular economic environment (geographical
              segment), which is subject to risks and rewards that are different from those of other segments.




                                                                         50
Grand Hoover Berhad (10493-P)                                                                                                Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                   cont’d


    5.   CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

         a)   Critical judgments made in applying accounting policies

              The following are the judgments made by management in the process of applying the Group’s and the Company’s
              accounting policies that have the most significant effect on the amounts recognised in the financial statements : -

              i)     Classification between investment property and property, plant and equipment

                     The Group and the Company has develop certain criteria based on FRS 140 in making judgment whether a
                     property qualifies as an investment property. Investment property is a property held to earn rentals or for capital
                     appreciation or both.

                     Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion
                     that is held for services or for administrative purposes. If these portions could be sold separately (or leased out
                     separately under a finance lease), the Group would account for the portion separately. If the portions could not
                     be sold separately, the property is an investment property only if an insignificant portion is held for use in the
                     production or supply of goods or services or for administrative purposes. Judgment is made on an individual
                     property basis to determine whether ancillary services are so significant that a property does not qualify as
                     investment property.

         b)   Key sources of estimation uncertainty

              The key assumption concerning the future and other key sources of estimation uncertainty at the balance sheet date
              that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
              next financial year are as stated below : -

              i)     Depreciation of property, plant and equipment
                     Property, plant and equipment are depreciated in a straight-line basis over their estimated useful life. Management
                     estimated the useful life of these assets to be within 5 to 99 years. Changes in the expected level of usage and
                     technological developments could impact the economic useful life and the residual values of these assets,
                     therefore future depreciation charges could be revised.

              ii)    Allowance for doubtful debts of receivables
                     The Group makes provision for doubtful debts based on an assessment of the recoverability of receivables.
                     Provision is applied to receivables where events or changes in circumstances indicate that the carrying amounts
                     may not be recoverable. Management specifically analyses historical bad debts, and changes in customer
                     payment terms when making a judgments to evaluate the adequacy of the provision for doubtful debts of
                     receivables. Where the expectation is different from the original estimate, such difference will impact the carrying
                     value of receivables.

              iii)   Deferred tax assets
                     Deferred tax assets are recognised for all unabsorbed tax losses, unabsorbed capital allowances and unutilised
                     reinvestment allowance to the extent that it is probable that taxable profit will be available against which the
                     unabsorbed tax losses, unabsorbed capital allowances and unitilised reinvestment allowance can be utilised.
                     Significant management judgment 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 together with future tax planning
                     strategies. The amount of unrecognised deferred tax assets arising from unabsorbed tax losses and capital
                     allowances, and unutilised reinvestment allowance was approximately RM3,321,200 (2008 – RM12,574,000).

              iv)    Income taxes
                     There are certain transactions and computations for which the ultimate tax determination may be different from
                     the initial estimate. The Group recognises tax liabilities based on its 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.



                                                                 51
Annual Report 2009                                                                                     Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                   cont’d


   5.   CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

        b)   Key sources of estimation uncertainty (cont’d)

             v)      Provision for inventories
                     Reviews are made periodically by management on damaged, obsolete and slow-moving inventories. These
                     reviews required judgment and estimates. Possible changes in these estimates could result in revisions to the
                     valuation of inventories.

             vi)     Property development
                     The Group recognises property development revenue and expenses in the income statement by using the stage
                     of completion method. The stage of completion is measured by reference to the percentage of survey work
                     performed.

                     Significant judgment is required in determining the stage of completion, the extent of the property development
                     costs incurred, the estimated total property development costs, as well as the recoverability of the development
                     projects. In making the judgment, the Group evaluates based on past experience and by relying on the work of
                     specialists.

             vii)    Contracts revenue
                     The Group recognises contract revenue in the income statement by using the stage of completion method. The
                     stage of completion is determined by the proportion that costs incurred for work performed to date bears to
                     estimated total contract costs or services performed to date as a percentage of total services to be rendered
                     depending on the nature of the transaction.

                     Significant judgment is required in determining the stage of completion, the extent of the contract costs incurred,
                     the estimated total contract revenue and costs, as well as the recoverability of the contracts. In making the
                     judgment, the Group evaluates based on past experience and by relying on the work of specialists.

             viii)   Impairment of investment in subsidiary company
                     The Company carried out the impairment test based on the assessment of the fair value of the respective assets’
                     or cash generating units’ (“CGU”) fair value less costs to sell or based on the estimation of the value-in-use
                     (“VIU”) of the CGUs to which the property, plant and equipment are allocated. Estimating the VIU requires the
                     Company to make an estimate of the expected future cash flows from the CGU and also to choose a suitable
                     discount rate in order to calculate the present value of those cash flows.

                     The carrying amounts of investment in subsidiary companies of the Company as at 30th June 2009 was
                     RM6,741,942 (2008 – RM6,741,942).

             ix)     Impairment of goodwill
                     The Group tests goodwill for impairment annually in accordance with its accounting policy 4 (d) and whenever
                     events or changes in circumstances indicate that the goodwill may be impaired.

                     For the purposes of assessing impairment, goodwill is allocated to cash-generating units or groups of cash-
                     generating units that are expected to benefit from the synergies of the business combination in which the
                     goodwill arose.

                     Significant judgment is required in the estimation of the present value of future cash flows generated by the cash-
                     generating units or groups of cash-generating units, which involves uncertainties and are significantly affected by
                     assumptions used and judgment made regarding estimates of future cash flows and discount rates. Changes in
                     assumptions could significantly affect the results of the Group’s tests for impairment of goodwill.




                                                                     52
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                              cont’d


    6.   PROPERTY, PLANT AND EQUIPMENT

                                                                                                  Disposal of
         Group                                         As at                         Disposals / a subsidiary           As at
         2009                                       1/7/2008         Additions       Written off      (Note 9)      30/6/2009
                                                         RM               RM                 RM             RM           RM

         At cost/valuation
         Freehold land                              1,157,273                -                   -             -    1,157,273
         Buildings                                  3,546,976                -                   -             -    3,546,976
         Office equipment, furniture and fittings
           and renovation                           1,581,694          37,335            (14,355)       (440,755)   1,163,919
         Plant, machinery, tools and equipment       354,824                 -            (8,600)        (95,000)     251,224
         Motor vehicles                             2,580,835         631,898           (230,833)       (514,549)   2,467,351

                                                    9,221,602         669,233           (253,788)     (1,050,304)   8,586,743


                                                                                                        At 2006         As at
                                                                                         At cost       valuation    30/6/2009
                                                                                             RM             RM           RM

         Representing items :
         Freehold land                                                                   317,273         840,000    1,157,273
         Buildings                                                                     2,586,976         960,000    3,546,976
         Office equipment, furniture and fittings
           and renovation                                                              1,163,919               -    1,163,919
         Plant, machinery, tools and equipment                                           251,224               -      251,224
         Motor vehicles                                                                2,467,351               -    2,467,351

                                                                                       6,786,743       1,800,000    8,586,743


                                                                                                  Disposal of
                                                       As at     Charge for          Disposals / a subsidiary           As at
                                                    1/7/2008       the year          Written off      (Note 9)      30/6/2009
                                                         RM               RM                 RM             RM           RM

         Accumulated depreciation
         Freehold land                                      -                -                   -             -            -
         Buildings                                   330,701           70,940                    -             -      401,641
         Office equipment, furniture and fittings
           and renovation                           1,032,387         107,795            (14,132)       (388,130)     737,920
         Plant, machinery, tools and equipment       332,891              870             (8,600)        (94,321)     230,840
         Motor vehicles                             2,115,634         299,806           (230,832)       (468,639)   1,715,969

                                                    3,811,613         479,411           (253,564)       (951,090)   3,086,370


                                                                        As at    Impairment loss                        As at
                                                                     1/7/2008        for the year       Deletion    30/6/2009
                                                                          RM                 RM             RM           RM

         Impairment losses
         Plant, machinery, tools and equipment                         14,700                -                 -       14,700




                                                                53
Annual Report 2009                                                                                   Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                             cont’d


   6.   PROPERTY, PLANT AND EQUIPMENT (CONT’D)

        Group                                                         As at                    Disposals /           As at
        2008                                                       1/7/2007       Additions    Written off       30/6/2008
                                                                         RM             RM             RM              RM

        At cost/valuation
        Freehold land                                              1,157,273               -              -       1,157,273
        Buildings                                                  3,546,976               -              -       3,546,976
        Office equipment, furniture and fittings and renovation    2,191,200         21,180       (630,686)       1,581,694
        Plant, machinery, tools and equipment                       354,824                -              -        354,824
        Motor vehicles                                             2,831,496         97,000       (347,661)       2,580,835

                                                                  10,081,769        118,180       (978,347)       9,221,602


                                                                                                   At 2006            As at
                                                                                     At cost      valuation      30/6/2008
                                                                                        RM             RM              RM

        Representing items :
        Freehold land                                                               317,273       840,000         1,157,273
        Buildings                                                                 2,586,976       960,000         3,546,976
        Office equipment, furniture and fittings and renovation                   1,581,694               -       1,581,694
        Plant, machinery, tools and equipment                                       354,824               -        354,824
        Motor vehicles                                                            2,580,835               -       2,580,835

                                                                                  7,421,602     1,800,000         9,221,602


                                                                      As at     Charge for     Disposals /           As at
                                                                   1/7/2007       the year     Written off       30/6/2008
                                                                         RM             RM             RM              RM

        Accumulated depreciation
        Freehold land                                                       -              -              -               -
        Buildings                                                   259,761          70,940               -        330,701
        Office equipment, furniture and fittings and renovation    1,485,457        150,552       (603,622)       1,032,387
        Plant, machinery, tools and equipment                       330,937           1,954               -        332,891
        Motor vehicles                                             2,090,627        372,668       (347,661)       2,115,634

                                                                   4,166,782        596,114       (951,283)       3,811,613


                                                                                Impairment
                                                                      As at         loss for                         As at
                                                                   1/7/2007        the year      Deletion        30/6/2008
                                                                         RM             RM             RM              RM

        Impairment losses
        Plant, machinery, tools and equipment                          14,700              -              -         14,700


   .




                                                                  54
Grand Hoover Berhad (10493-P)                                                                                 Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                     cont’d


    6.   PROPERTY, PLANT AND EQUIPMENT (CONT’D)

                                                                                                     Net Book Value
         Group                                                                                     2009          2008
                                                                                                    RM            RM

         Freehold land                                                                        1,157,273      1,157,273
         Buildings                                                                            3,145,335      3,216,275
         Office equipment, furniture and fittings and renovation                                425,999       549,307
         Plant, machinery, tools and equipment                                                    5,684         7,233
         Motor vehicles                                                                         751,382       465,201

                                                                                              5,485,673      5,395,289



         Company                                                       As at                 Disposals /        As at
         2009                                                       1/7/2008    Additions    Written off    30/6/2009
                                                                        RM           RM             RM            RM

         At cost
         Office equipment, furniture and fittings and renovation    589,304       12,158               -      601,462



                                                                       As at   Charge for    Disposals /        As at
                                                                    1/7/2007     the year    Written off    30/6/2008
                                                                        RM           RM             RM            RM

         Accumulated depreciation
         Office equipment, furniture and fittings and renovation    312,001       58,573               -      370,574



                                                                       As at                 Disposals /        As at
         2008                                                       1/7/2007    Additions    Written off    30/6/2008
                                                                        RM           RM             RM            RM

         At cost
         Office equipment, furniture and fittings and renovation    678,036             -        (88,732)     589,304



                                                                       As at   Charge for    Disposals /        As at
                                                                    1/7/2007     the year    Written off    30/6/2008
                                                                        RM           RM             RM            RM

         Accumulated depreciation
         Office equipment, furniture and fittings and renovation    330,450       63,360         (81,809)     312,001



                                                                                                     Net Book Value
                                                                                                   2009          2008
                                                                                                    RM            RM

         Office equipment, furniture and fittings and renovation                                230,888       277,303



                                                               55
Annual Report 2009                                                                          Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                    cont’d


   6.   PROPERTY, PLANT AND EQUIPMENT (CONT’D)

        i)     Certain freehold land and buildings are stated at directors’ valuations based on professional valuations made by Mr
               D.B. Das Gupta, a Chartered Surveyor and Registered Valuer of Messrs Stocker Roberts & Gupta, on the open market
               value basis conducted in year 2006.

               Had the land and buildings been carried at historical cost less accumulated depreciation, the carrying amounts of the
               revalued assets that would have been included in the financial statements at the end of the year are as follows : -

                                                                                 Group                           Company
                                                                          2009             2008             2009              2008
                                                                            RM               RM               RM               RM

               Freehold land                                           215,000          215,000                  -               -
               Buildings                                               525,007          544,966                  -               -

                                                                       740,007          759,966                  -               -


        ii)    The carrying amounts of properties charged to licensed banks as securities for borrowings granted to the subsidiaries
               as at the balance sheet date are as follows : -

                                                                                 Group                           Company
                                                                          2009             2008             2009              2008
                                                                            RM               RM               RM               RM

               Freehold land                                           317,273          317,273                  -               -
               Building                                                334,000          342,000                  -               -

                                                                       651,273          659,273                  -               -


        iii)   Included in the property, plant and equipment of the Group and of the Company are assets at cost of RM1,648,772
               (2008 – RM1,422,560) and RM5,494 (2008 – RM5,494) respectively which have been fully depreciated and still in
               use.

        iv)    The carrying amount of property, plant and equipment at the balance sheet date held under hire purchase arrangements
               is as follows : -

                                                                                 Group                           Company
                                                                          2009             2008             2009              2008
                                                                            RM               RM               RM               RM

               Motor vehicles                                          713,646          440,730                  -               -




                                                                    56
Grand Hoover Berhad (10493-P)                                                                                        Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                cont’d


    7.   INVESTMENT PROPERTIES

                                                                     Long term
         Group                                                        leasehold         Freehold
         2009                                                             lands             land         Buildings             Total
                                                                             RM               RM               RM               RM

         At Fair Value
         Balance at 1/7/08                                              540,000          530,000          710,000         1,780,000
         Additions                                                      188,680                  -        377,359           566,039
         Change during the year                                          (88,680)                -        (177,359)        (266,039)

         Balance at 30/6/09                                             640,000          530,000          910,000         2,080,000

         2008
         (Restated)

         At Fair Value
         Balance at 1/7/07                                              540,000          530,000          710,000         1,780,000
         Additions                                                              -                -                -                -

         Balance at 30/6/08                                             540,000          530,000          710,000         1,780,000



         Company
         2009                                                                                                             Buildings
                                                                                                                                RM

         At Fair Value
         Balance at 1/7/08                                                                                                2,700,000
         Additions                                                                                                                 -

         Balance at 30/6/09                                                                                               2,700,000

         2008
         (Restated)

         At Fair Value
         Balance at 1/7/07                                                                                                2,700,000
         Additions                                                                                                                 -

         Balance at 30/6/08                                                                                               2,700,000


         Investment properties comprise a number of commercial properties that are leased to third parties. Certain investment
         properties of the Company and a subsidiary company were leased to companies within the Group for their respective own
         use, and accordingly, classified as property, plant and equipment in the consolidated balance sheet. No contingent rents are
         charged.

         The fair values of long term leasehold lands, freehold land and buildings are determined by the directors based on valuations
         by an independent valuer, who holds a recognised qualification and has relevant experience, by reference to market evidence
         of transaction prices of similar properties or comparable available market data.

         Rental income earned by the Group and the Company amounted to RM36,300 (2008 – RM30,600) and RM185,760 (2008
         – RM93,024) are recognised in profit or loss in respect of the investment properties.



                                                                57
Annual Report 2009                                                                                   Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                    cont’d


   7.   INVESTMENT PROPERTIES (CONT’D)

        Included in investment properties are the following : -

        i)    The long term leasehold land and building have an unexpired lease periods of 91 and 82 years expiring in year 2100
              and 2091 respectively.

        ii)   The titles of the long term leasehold lands, freehold land and buildings of the Group and of the Company at fair values
              of RM2,080,000 (2008 – RM2,080,000) and RM2,700,000 (2008 – RM2,700,000) respectively are in the process of
              being registered in the name of subsidiaries, Heap Wah Enterprise Sdn. Bhd. and Hoover Tiling Contracts Sdn. Bhd.,
              and the name of the Company.



   8.   PREPAID LEASE PAYMENTS

                                                                                     Long term        Short term
         Group                                                                        leasehold        leasehold
         2009                                                                              land              land             Total
                                                                                             RM               RM               RM

         At valuation

         Balance at 1/7/08                                                              400,000            80,000          480,000
         Additions                                                                              -                -                -

         Balance at 30/6/09                                                             400,000            80,000          480,000


         Accumulated amortisation

         Balance at 1/7/08                                                                46,607           17,233           63,840
         Charge for the year                                                               4,590            2,511             7,101

         Balance at 30/6/09                                                               51,197           19,744           70,941

         Net carrying amount                                                            348,803            60,256          409,059

         2008

         At valuation

         Balance at 1/7/07                                                              400,000            80,000          480,000
         Additions                                                                              -                -                -

         Balance at 30/6/08                                                             400,000            80,000          480,000

         Accumulated amortisation

         Balance at 1/7/07                                                                38,607           15,633           54,240
         Charge for the year                                                               8,000            1,600             9,600

         Balance at 30/6/08                                                               46,607           17,233           63,840

         Net carrying amount                                                            353,393            62,767          416,160




                                                                    58
Grand Hoover Berhad (10493-P)                                                                                        Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                  cont’d


    8.   PREPAID LEASE PAYMENTS (CONT’D)

         Included in prepaid lease payments are the following : -

         i)     The long term leasehold land and short term leasehold land have unexpired lease periods of 76 years and 24 years
                expiring in year 2085 and 2033 respectively.

         ii)    Revaluation
                The long term leasehold land and short term leasehold land are stated at diretcors’ valuations based on professional
                valuations made by Mr D.B. Das Gupta, a Chartered Surveyor and Registered Valuer of Messrs Stoker Robert &
                Gupta, on an open market value basis conducted in 2006. In accordance with transitional provisions issued by
                Financial Reporting Standards No. 117, Leases, the valuation of these leasehold land have not been updated, and
                the unamortised revalued amount was retained as the surrogate carrying amount of prepaid lease payments. Such
                prepaid lease payments shall be amortised over the terms of leases.

         iii)   The carrying amount of property charged to a licensed bank as security for bank facilities granted to a subsidiary as at
                the balance sheet date is as follows : -

                                                                                                                 2009             2008
                                                                                                                  RM                RM

                At net book value
                - Long term leasehold land                                                                  348,804           353,393


    9.   INVESTMENT IN SUBSIDIARIES

                                                                                                                     Company
                                                                                                                 2009             2008
                                                                                                                  RM                RM

          Unquoted shares, at valuation                                                                  15,510,923       30,048,314
          Less : Provision for impairment losses                                                          (8,768,981)     (23,306,372)

                                                                                                          6,741,942         6,741,942


         The principal activities of the subsidiaries in the Group, all of which are incorporated and domiciled in Malaysia, and the
         interest of Grand Hoover Berhad are as follows : -

                                                                                                           Effective ownership
          Name of company                               Principal activities                                     interest
                                                                                                           2009              2008
                                                                                                             %                %

          Hoover Tiling Trading Sdn. Bhd.               Sale of ceramic tiles, marble and parquet.          100              100
          Hoover Builders Sdn. Bhd. (formerly           Building and construction works contractor.         100              100
          known as L’Grande Construction
          Sdn. Bhd.)




                                                                 59
Annual Report 2009                                                                                     Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                               cont’d


   9.   INVESTMENT IN SUBSIDIARIES (CONT’D)

                                                                                                      Effective ownership
        Name of company                               Principal activities                                  interest
                                                                                                      2009             2008
                                                                                                       %                %

        Hoover Tiling Contracts Sdn. Bhd.             Tiling, parquet and marble works                 100              100
                                                      contractor.
        Grand Hoover Property Sdn. Bhd.               Property development and investment              100              100
                                                      holding.
        Hoover Management Sdn. Bhd.                   Management services.                             100              100
        Metro Sun Brickworks Sdn. Bhd.                Dormant.                                         80               80
        Heap Wah Enterprise Sdn. Bhd.                 Trading and supply sanitary wares, tapware       70               70
                                                      and related products.
        L’Grande Development Sdn. Bhd. (*)            Building and construction works contractor.       -               100

        (*) This subsidiary company was disposed of during the financial year.

        On 28th August 2008, the Company entered into a Shares Sale and Purchase Agreement with 2 individuals for the disposal
        of the entire 6,000,000 shares of RM1.00 each fully paid in L’Grande Development Sdn. Bhd., a wholly owned subsidiary of
        the Company, for a total cash consideration of RM1,000. The subsidiary was previously reported as part of the construction
        segment. The gain on disposal to the Group amounted to RM67,958.

        The effect of the disposal on the financial results of the Group during the financial year is minimal and no impact to the
        Group.

        The effect of the disposal on the financial position of the Group is as follows : -

                                                                                                                             2009
                                                                                                                              RM

        Property, plant and equipment (Note 6)                                                                           99,214
        Amount due from contract customers                                                                              304,061
        Trade receivables (net of allowance for doubtful debts of RM2,864,230)                                       14,716,270
        Other receivables, deposits and prepayments                                                                   4,810,387
        Amount due from related companies                                                                             1,231,421
        Tax recoverable                                                                                                 162,919
        Deposit with a licensed bank                                                                                  1,142,088
        Cash and bank balances                                                                                           61,082
        Bank overdraft                                                                                               (1,916,803)
        Amount due to contract customers                                                                             (1,424,156)
        Trade payables                                                                                              (17,397,940)
        Other payables and accruals                                                                                  (1,408,523)
        Amount due to related companies                                                                                (284,022)
        Borrowings                                                                                                     (162,956)

        Net liabilities disposed                                                                                         (66,958)




                                                                      60
Grand Hoover Berhad (10493-P)                                                                                    Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                 cont’d


    9.    INVESTMENT IN SUBSIDIARIES (CONT’D)

          The effect of the disposal on the cash flows of the Group during the financial year is as follows : -

                                                                                                                                 2009
                                                                                                                                  RM

          Property, plant and equipment (Note 6)                                                                               99,214
          Amount due from contract customers                                                                                304,061
          Trade receivables (net of allowance for doubtful debts of RM2,864,230)                                         14,716,270
          Other receivables, deposits and prepayments                                                                     4,810,387
          Amount due from related companies                                                                               1,231,421
          Tax recoverable                                                                                                   162,919
          Deposit with a licensed bank                                                                                    1,142,088
          Cash and bank balances                                                                                               61,082
          Bank overdraft                                                                                                  (1,916,803)
          Amount due to contract customers                                                                                (1,424,156)
          Trade payables                                                                                                 (17,397,940)
          Other payables and accruals                                                                                     (1,408,523)
          Amount due to related companies                                                                                   (284,022)
          Borrowings                                                                                                        (162,956)

          Net liabilities disposed                                                                                             (66,958)
          Gain on disposal of investment in a subsidiary                                                                       67,958

          Total cash consideration from the disposal                                                                            1,000
          Less : Cash and cash equivalents of subsidiary disposed of                                                        713,633

          Cash flow on disposal, net of cash and cash equivalents disposed of                                                714,633

          There was no disposal in the previous financial year.


    10.   GOODWILL ON CONSOLIDATION

                                                                                                                       Group
                                                                                                                2009             2008
                                                                                                                 RM               RM

          As at 1st July                                                                                  2,000,369       2,000,369
          Disposal of a subsidiary                                                                         (564,566)                 -

          As at 30th June                                                                                 1,435,803       2,000,369


          Accumulated impairment losses

          As at 1st July                                                                                    564,566         564,566
          Disposal of a subsidiary                                                                         (564,566)                 -

          As at 30th June                                                                                          -        564,566

          Net carrying amount                                                                             1,435,803       1,435,803




                                                                 61
Annual Report 2009                                                                                     Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                     cont’d


   10.   GOODWILL ON CONSOLIDATION (CONT’D)

         For the purpose of impairment testing, goodwill is allocated to the Group’s cash generating units (“CGUs”) identified according
         to the particular business segments which represent the lowest level within the Group at which the goodwill is monitored for
         internal management purposes.

         The aggregate carrying amounts of goodwill allocated to each unit are as follows : -

                                                                                                                      Group
                                                                                                               2009             2008
                                                                                                                RM               RM

         Trading                                                                                         1,132,770         1,132,770
         Construction                                                                                      284,601           284,601
         Management and services                                                                             18,432           18,432

                                                                                                         1,435,803         1,435,803

         The recoverable amount of a CGU is determined based on value-in-use calculations applying a discounted cash flow model
         based on financial budgets approved by management covering a 5 years period. Discount rate used is based on the Group’s
         pre-tax weighted average cost of capital.

         Receivables and payables turnover period is estimated to be consistent with the current financial year.

         The above key assumptions were determined based on business past performance and management’s expectations of
         market development.

         The above estimates are particularly sensitive in the following areas :

         -     Fluctuations in future planned revenues;

         -     Fluctuations in the development costs and cost of goods sold arising from fluctuations of raw material costs and
               construction costs;

         -     Fluctuations in the discount rate used; and

         -     Fluctuations in general interest rates.




                                                                      62
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                     cont’d


    11.   PROPERTY DEVELOPMENT COSTS

          Group
                                                                                           Freehold Development
          2009                                                                                 land        costs                   Total
                                                                                                  RM                RM               RM

          Property development costs
          Balance at 1/7/08                                                                7,000,000         2,153,476        9,153,476
          Costs incurred during the year                                                             -     16,554,966        16,554,966

          Balance at 30/6/09                                                               7,000,000       18,708,442        25,708,442


          Costs recognised in income statement
          - prior year                                                                      (938,652)         (701,640)       (1,640,292)
          - current year                                                                  (2,390,268)       (8,988,395)     (11,378,663)

                                                                                          (3,328,920)       (9,690,035)     (13,018,955)


          Transfer to inventories                                                                    -                 -                -

          Balance at 30/6/09                                                               3,671,080         9,018,407       12,689,487

          2008

          Property development costs
          Balance at 1/7/07                                                                7,000,000         1,073,510        8,073,510
          Costs incurred during the year                                                             -       1,079,966        1,079,966

          Balance at 30/6/08                                                               7,000,000         2,153,476        9,153,476


          Costs recognised in income statement
          - prior year                                                                               -                 -                -
          - current year                                                                    (938,652)         (701,640)       (1,640,292)

                                                                                            (938,652)         (701,640)       (1,640,292)


          Transfer to inventories                                                                    -                 -                -

          Balance at 30/6/08                                                               6,061,348         1,451,836        7,513,184


          The freehold land has been charged to an Islamic financial institution for credit facilities granted to a subsidiary, Grand Hoover
          Property Sdn. Bhd. The credit facilities have been fully settled during the financial year.

          Included in development expenditure incurred is Islamic bank financing expense of RM165,487 (2008 – RM108,867).




                                                                  63
Annual Report 2009                                                                                       Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                              cont’d


   12.   INVENTORIES

                                                                                                               Group
                                                                                                       2009             2008
                                                                                                         RM              RM

         At cost : -
         Finished goods                                                                           6,534,531        8,114,009


         The cost of inventories recognised as an expense during the financial year in the Group amounted to RM27,795,231 (2008
         – RM22,692,263).



   13.   AMOUNTS DUE FROM /(TO) CUSTOMERS FOR CONTRACT WORKS

                                                                                                               Group
                                                                                                       2009             2008
                                                                                                         RM              RM

         Amount due from customers for contract works

         Contract costs incurred to date                                                                   -     33,898,979
         Add : Profit recognised less losses                                                               -       1,698,255

                                                                                                           -     35,597,234
         Less : Progress billings                                                                          -     (35,291,976)

                                                                                                           -        305,258

         Retention sums on contracts                                                                       -       2,443,108

         Amount due to customers for contract works

         Contract costs incurred to date                                                                   -     46,019,152
         Add : Profit recognised less losses                                                               -        313,518

                                                                                                           -     46,332,670
         Less : Progress billings                                                                          -     (47,765,561)

                                                                                                           -      (1,432,891)

         Retention sums on contracts                                                                       -       2,017,331

         Additions to aggregate costs incurred during the year included : -

         Hire of plant and machinery                                                                       -           12,870
         Rental of site offices and facilities                                                             -            1,500
         Staff costs (Note 35)                                                                             -           36,609




                                                                    64
Grand Hoover Berhad (10493-P)                                                                                  Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                cont’d


    14.   TRADE RECEIVABLES

                                                                                                                       Group
                                                                                                              2009              2008
                                                                                                                RM               RM

          Trade receivables                                                                              13,692,439      32,235,654
          Less : Allowance for doubtful debts                                                              (695,537)      (4,017,796)

                                                                                                         12,996,902      28,217,858

          The allowance for doubtful debts is net of bad debts written off as follows : -

                                                                                                                       Group
                                                                                                              2009              2008
                                                                                                                RM               RM

          Bad debts written off                                                                           3,457,740            32,559


          Included in trade receivables of the Group is      retention sums on contracts amounting to RM14,286 (2008 –
          RM4,486,725).

          Included in bad debts written off is an amount of RM2,864,230 (2008 – Nil) which relates to a former subsidiary company
          (Note 9).

          The credit term of trade receivables is up to 90 days. Other terms are assessed and approved on a case-by-case basis.



    15.   ACCRUED BILLINGS

                                                                                                                       Group
                                                                                                              2009              2008
                                                                                                                RM               RM

          Accrued billings                                                                                  184,699         468,722


          This represents the excess of revenue recognised in the income statement over the billings to purchasers.



    16.   OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

                                                                                     Group                         Company
                                                                              2009              2008          2009              2008
                                                                               RM                RM             RM               RM

          Other receivables                                                 59,444          5,220,892          559               559
          Deposit on land acquisition and related costs                 8,745,484           8,745,484     8,745,484       8,745,484
          Other deposits                                                  106,404           1,292,667        14,294         171,194
          Prepayments                                                       36,611            45,803           337             14,858

                                                                        8,947,943       15,304,846        8,760,674       8,932,095



                                                                  65
Annual Report 2009                                                                                      Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                   cont’d


   16.   OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONT’D)

         Group and Company

         The deposit on land acquisition and related costs were incurred for the proposed acquisition of a parcel of 125 acres land
         from Kedah State Government, Perbandaran Kemajuan Negeri Kedah (“PKNK”).

                                                                                                             2009             2008
                                                                                                              RM               RM

         Land cost                                                                                      5,000,000        5,000,000
         Related expenditure                                                                            3,745,484        3,745,484

                                                                                                        8,745,484        8,745,484


         PKNK is currently finalising with the State Government to identify the intended area and issue a block title for registration
         under Company’s name (Note 42).

         Group

         Included in comparative figure of other receivables are       properties amounting to RM566,039 and RM3,697,156 that
         were transferred to a subsidiary company and a former subsidiary respectively pursuant to agreements entered into between
         the existing and former subsidiary and their trade receivables as settlement of their respective debt obligations.



   17.   AMOUNTS DUE FROM/(TO) SUBSIDIARY COMPANIES

                                                                                                                  Company
                                                                                                             2009             2008
                                                                                                              RM               RM

         Amount due from subsidiaries :
         - Non-trade                                                                                    8,252,216        8,277,081
         - Loans                                                                                        5,997,846        6,518,077

                                                                                                      14,250,062        14,795,158
         Less : Allowance for doubtful debts                                                           (5,661,698)      (5,661,698)

                                                                                                        8,588,364        9,133,460


         Amount due to subsidiaries :
         - Non-trade                                                                                      (45,533)        (499,026)
         - Loans                                                                                       (1,712,843)      (1,700,300)

                                                                                                       (1,758,376)      (2,199,326)




                                                                    66
Grand Hoover Berhad (10493-P)                                                                                        Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                   cont’d


    17.   AMOUNTS DUE FROM/(TO) SUBSIDIARY COMPANIES (CONT’D)

          Non-trade balances due from/(to) subsidiary companies are in respect of advances and payments made on behalf, which
          are unsecured, interest free and have no fixed terms of repayment.

          Included in the amount owing to subsidiaries is an unsecured loan of RM997,183 (2008 – RM971,300) due to a subsidiary
          company, Heap Wah Enterprise Sdn. Bhd. which bears interest at rate of 3.75% to 4.00% (2008 – 3.75% to 8.50%) per
          annum and has no fixed terms of repayment.



    18.   DEPOSITS WITH LICENSED BANKS

                                                                                                                         Group
                                                                                                                2009              2008
                                                                                                                  RM               RM

          Fixed deposits                                                                                      21,193         1,293,714
          General Mudharabah Investment                                                                              -         152,607

                                                                                                              21,193         1,446,321


          The deposits with licensed banks amounted to RM21,193 (2008 – RM1,446,321) have been pledged to licensed banks as
          securities for credit facilities and bank guarantees granted to the subsidiaries (Notes 24, 26 and 40).

          The effective interest rates of fixed deposits with licensed banks range from 2.0% to 3.10% (2008 – 3.15%) per annum.

          The income rates of General Mudharabah Investment that was effective during the financial year is Nil (2008 – 2.9% to 3.1%)
          per annum.

          The deposits with licensed banks have maturity periods range from 1 month to 4 months (2008 – 1 month to 5 months).


    19.   SHARE CAPITAL

                                                                                                              Group and Company
                                                                                                           2009                   2008

          Authorised :
          100,000,000 ordinary shares of RM1 each                                               RM100,000,000            RM100,000,000

          Issued and fully paid :
          40,000,000 ordinary shares of RM1 each                                                 RM40,000,000             RM40,000,000


          The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per
          share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets.




                                                                  67
Annual Report 2009                                                                                      Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                               cont’d


   20.   RESERVES

                                                                                 Group                       Company
                                                                        2009              2008          2009             2008
                                                                         RM                RM            RM               RM
                                                                                    (Restated)                      (Restated)

         Non-distributable
         Share premium                                             4,186,166        4,186,166      4,186,166         4,186,166
         Revaluation reserves                                        620,491        1,642,588               -                -

                                                                   4,806,657        5,828,754      4,186,166         4,186,166

         Distributable
         Accumulated losses                                       (11,097,382)     (13,841,911)   (20,037,042)     (21,183,803)

                                                                   (6,290,725)      (8,013,157)   (15,850,876)     (16,997,637)


   21.   MINORITY INTEREST

                                                                                                                 Group
                                                                                                        2009             2008
                                                                                                         RM               RM
                                                                                                                     (Restated)

         Balance at the beginning of the year                                                      5,772,758         5,413,258
         Transferred from income statement                                                           501,794          509,500
         Dividend paid                                                                                (63,000)        (150,000)
         Effect of changes in tax rates on revaluation reserves                                         1,200                -

         Balance at the end of the year                                                            6,212,752         5,772,758


   22.   DEFERRED TAX LIABILITIES

                                                                                 Group                       Company
                                                                        2009              2008          2009             2008
                                                                         RM                RM            RM               RM
                                                                                    (Restated)

         Balance at the beginning of the year                        147,200          100,200               -                -
         Recognised in the income statement (Note 36)                  85,463            47,000             -                -
         Transferred from equity
         - revaluation surplus                                         10,837                 -             -                -

         Balance at the end of the year                              243,500          147,200               -                -




                                                                  68
Grand Hoover Berhad (10493-P)                                                                                    Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                   cont’d


    22.   DEFERRED TAX LIABILITIES (CONT’D)

          The components and movements of deferred tax assets and liabilities during the financial year prior to offsetting are as
          follows : -

                                                                                          Charge/
                                                                                            (credit)         Charge/
          Group                                                             As at       to income             (credit)          As at
          2009                                                            1st July      statement           to equity      30th June
                                                                              RM                 RM              RM               RM

          Deferred tax assets
          Depreciation in excess of capital allowances                      (8,000)            8,000                -                -


          Deferred tax liabilities
          Revaluation on land and building                                151,000             (11,837)        10,837          150,000
          Accelerated capital allowances                                    4,200              5,300                -           9,500
          Development expenditure                                                -            84,000                -          84,000

                                                                          155,200             77,463          10,837          243,500

          2008
          (Restated)

          Deferred tax assets
          Depreciation in excess of capital allowances                      (6,000)            (2,000)              -           (8,000)
          Unabsorbed tax losses and capital allowances                    (47,500)            47,500                -                -

                                                                          (53,500)            45,500                -           (8,000)


          Deferred tax liabilities
          Revaluation on land and building                                151,300                (300)              -         151,000
          Accelerated capital allowances                                    2,400              1,800                -           4,200

                                                                          153,700              1,500                -         155,200


          Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off current tax assets against
          current tax liabilities and where the deferred income taxes relate to the same tax authority. The net deferred tax assets and
          liabilities shown on the balance sheet after appropriate offsetting are : -

                                                                                      Group                          Company
                                                                             2009               2008            2009             2008
                                                                              RM                 RM              RM               RM
                                                                                         (Restated)

          Deferred tax assets                                                    -             (3,800)              -                -
          Deferred tax liabilities                                        243,500          151,000                  -                -

                                                                          243,500          147,200                  -                -




                                                                 69
Annual Report 2009                                                                                       Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                cont’d


   23.   BORROWINGS

                                                                                                                 Group
                                                                                                         2009             2008
                                                                                                          RM               RM

         Non-current liabilities

         Secured
         Hire purchase creditors (Note 27)                                                            392,393         263,738

         Current liabilities

         Secured
         Islamic bank financing (Note 24)                                                                    -       2,339,336
         Bank overdraft (Note 25)                                                                      68,794        2,025,408
         Bankers' acceptances (Note 26)                                                                      -       1,078,000
         Hire purchase creditors (Note 27)                                                            128,245         195,295

                                                                                                      197,039        5,638,039

         Total borrowings

         Secured
         Islamic bank financing (Note 24)                                                                    -       2,339,336
         Bank overdraft (Note 25)                                                                      68,794        2,025,408
         Bankers' acceptances (Note 26)                                                                      -       1,078,000
         Hire purchase creditors (Note 27)                                                            520,638         459,033

                                                                                                      589,432        5,901,777


         Interest/Expense rates per annum on the borrowings of the Group and of the Company are as follows : -

                                                                                                                 Group
                                                                                                         2009             2008
                                                                                                           %                %

         Islamic bank financing
         - secured                                                                                           -            8.80
         Bank overdrafts
         - secured                                                                                       7.95        8.75-8.80
         Bankers' acceptances
         - secured                                                                                  4.96-5.03        4.96-5.03
         Hire purchase creditors                                                                   4.80 - 7.51      4.80 - 8.14




                                                                  70
Grand Hoover Berhad (10493-P)                                                                                    Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                    cont’d


    24.   ISLAMIC BANK FINANCING

                                                                                                                          Group
                                                                                                               2009               2008
                                                                                                                RM                 RM

           Secured
           Istisna Fund                                                                                               -       610,780
           Muamalat Cash Line                                                                                         -      1,728,556

                                                                                                                      -      2,339,336

          Istisna Fund and Muamalat Cash Line

          The Istisna Fund and Muamalat Cash Line were secured by : -

          i)     first legal charge over the freehold land under development by a subsidiary, Grand Hoover Property Sdn. Bhd.;

          ii)    jointly and severally guaranteed by certain directors namely Dato’ Sim Chong Wan @ Sim Tan Beg, Sim Cheng Young
                 and Sim Chong Leong; and

          iii)   corporate guarantee for RM6.5 million by the Company.

          iv)    fixed deposits and General Mudharabah Investment of a subsidiary, Grand Hoover Property Sdn. Bhd.

          The Istisna Fund borne financing expense at rate of Nil (2008 – 8.8%) per annum and repayable by redemption on sales
          proceeds of development properties. The Istisna Fund has been fully settled during the financial year.

          The Muamalat Cash Line borne financing expense at rate of Nil (2008 – 2.0%) per annum above bank’s base financing rate.
          The Muamalat Cash Line has been fully settled during the financial year.


    25.   BANK OVERDRAFTS

          Secured

          Group

          The bank overdraft of the Group is secured by : -

          i)     first legal charge over the freehold land of a subsidiary, Metro Sun Brickworks Sdn. Bhd. (Note 6);

          ii)    corporate guarantee for RM70,000 by the Company.

          iii)   Jointly and severally guaranteed by certain directors namely Dato’ Sim Chong Wan @ Sim Tan Beg, Sim Cheng Young
                 and Sim Chong Leong.

          The bank overdraft bears interest at rate of 7.95% (2007 – 8.75% to 8.80%) per annum.




                                                                 71
Annual Report 2009                                                                                    Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                   cont’d


   26.   BANKERS’ ACCEPTANCES

         Secured

         Group

         The bankers’ acceptances are secured by : -

         i)     first legal charge over the long term leasehold land and building of a subsidiary, Heap Wah Enterprise Sdn. Bhd. ;

         ii)    corporate guarantee for RM5.55 million by the Company.

         iii)   fixed deposit of a subsidiary, Heap Wah Enterprise Sdn. Bhd. (Note 18)

         The bankers’ acceptances bear interest at rate of 4.96%-5.03% (2008 – 4.96%-5.03%) per annum.


   27.   HIRE PURCHASE CREDITORS

                                                                                                                      Group
                                                                                                             2009               2008
                                                                                                               RM                RM

          Minimum hire purchase payments : -
          - not later than one year                                                                       157,152          214,962
          - later than one year and not later than two years                                              142,076          138,072
          - later than two years and not later than five years                                            257,381          122,728
          - later than five years                                                                          39,122             23,881

                                                                                                          595,731          499,643
          Less : Future interest charges                                                                   (75,093)           (40,610)

          Present value of hire purchase liabilities                                                      520,638          459,033

          Repayable as follows : -

          Non-current liabilities
          - later than one year and not later than two years                                              121,626          126,711
          - later than two years and not later than five years                                            232,759          114,299
          - later than five years                                                                          38,008             22,728

                                                                                                          392,393          263,738

          Current liabilities
          - not later than one year                                                                       128,245          195,295

                                                                                                          520,638          459,033




                                                                     72
Grand Hoover Berhad (10493-P)                                                                                         Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                  cont’d


    27.   HIRE PURCHASE CREDITORS (CONT’D)

          Effective interest rates of hire purchase for the financial year range from 4.80% to 7.51% (2008 – 4.80% to 8.14%) per
          annum.

          The Group obtain hire purchase facilities to finance its motor vehicles (Note 6). The average remaining lease term is 6 years
          as at 30th June 2009. Implicit interest rate of the hire purchase are fixed at the inception of the hire purchase arrangements,
          and the hire purchase instalments are fixed throughout the lease period. The Group has the option to purchase the assets
          at the end of the agreements with minimum purchase considerations. There is no significant restriction clauses imposed on
          the hire purchase arrangements.



    28.   TRADE PAYABLES

          Group

          The credit term of trade payables is up to 90 days. However, the term may vary upon negotiation with the trade payables.

          Included in trade payables of the Group is retention sums on contracts amounting to RM1,294,572 (2008 –
          RM3,485,538).



    29.   OTHER PAYABLES AND ACCRUALS

                                                                                    Group                            Company
                                                                             2009             2008              2009             2008
                                                                              RM                RM               RM               RM

           Other payables                                               3,818,895        4,017,804        2,636,009         2,714,610
           Accruals                                                       540,171        1,419,170            73,000          128,928
           Sundry deposits                                                 28,944             8,220                 -                -

                                                                        4,388,010        5,445,194        2,709,009         2,843,538

          Group

          Included in other payables is the following : -

          i)    an amount of RM106,377 (2008 – RM106,377) due to a company, Urusiap Sdn. Bhd., in which certain directors
                namely Dato’ Sim Chong Wan @ Sim Tan Beg and Sim Cheng Young have an interest.

          ii)   an amount of RM899,022 (2008 – Nil) due to a former subsidiary company.

          The amounts outstanding are unsecured, interest free and have no fixed terms of repayment.




                                                                 73
Annual Report 2009                                                                                     Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                           cont’d


   30.   REVENUE AND COST OF SALES

                                                                               Group                    Company
                                                                       2009             2008        2009             2008
                                                                        RM               RM          RM               RM

         Revenue
         Sale of goods                                           32,874,114      27,840,748             -               -
         Property development revenue                            15,866,451       6,174,551             -               -
         Contract revenue                                              8,735           79,710           -               -
         Dividend income
         - subsidiary companies                                            -                -   1,553,464        411,486
         Management fee                                                 500                 -           -               -
         Rental income                                                     -                -    185,760          93,024
         Insurance commission                                          5,767           11,673           -               -

                                                                 48,755,567      34,106,682     1,739,224        504,510

                                                                               Group                    Company
                                                                       2009             2008        2009             2008
                                                                        RM               RM          RM               RM

         Cost of sales
         Cost of goods sold                                      27,795,231      22,692,263             -               -
         Property development cost                               11,378,663       1,640,292             -               -
         Contract costs                                                    -      2,938,205             -               -
         Rental/Service costs                                         81,871           84,657     45,483          37,866
         Project loss                                                      -       223,540              -               -

                                                                 39,255,765      27,578,957       45,483          37,866


   31.   OTHER INCOME

                                                                               Group                    Company
                                                                       2009             2008        2009             2008
                                                                        RM               RM          RM               RM

         Allowance for doubtful debts written back                    83,513           25,000           -               -
         Deposit forfeited                                         195,630                  -           -               -
         Gain on disposal of investment in a subsidiary               67,958                -      1,000                -
         Gain on disposal of plant and equipment                      84,999           64,500           -               -
         Hibah earned                                                  7,560            1,126           -               -
         Insurance refund                                             33,064                -           -               -
         Interest income                                               4,922           44,241           -               -
         Rental income                                                54,300           50,550           -               -
         Reversal of accrued contract costs no longer required        40,445                -           -               -
         Transport income                                              3,824            1,904           -               -
         Sundry income                                                  448            12,000           -               -

                                                                   576,663         199,321         1,000                -



                                                                 74
Grand Hoover Berhad (10493-P)                                                                               Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                         cont’d


    32.   FINANCE COSTS (CONT’D)

                                                                                Group                       Company
                                                                       2009              2008          2009           2008
                                                                        RM                RM             RM            RM

          Istina Fund financing expense                             104,679             14,454             -              -
          Muamalat Cash Line financing expense                       60,808             94,413             -              -
          Bank overdraft interest                                     7,228          182,906               5              -
          Bankers' acceptance interest                               16,437             12,917
          Hire purchase interest                                     30,198             31,076             -              -
          Interest charged by a subsidiary company                         -                 -        37,452        43,686

                                                                    219,350          335,766          37,457        43,686
          Less : Financing expense capitalised in
                 qualifying assets :
                  Property development costs (Note 11)              (165,487)       (108,867)              -              -

                                                                     53,863          226,899          37,457        43,686


    33.   PROFIT BEFORE TAXATION

                                                                                Group                       Company
                                                                       2009              2008          2009           2008
                                                                        RM                RM             RM            RM
                                                                                   (Restated)                    (Restated)

          Profit before tax is arrived at after charging : -

          Allowance for doubtful debts                              218,995          251,678               -              -
          Amortisation of prepaid lease payments                      7,101              9,600             -              -
          Auditors’ remuneration
          - statutory audit                                          66,400             69,000        21,000        21,000
          - other service                                                  -             7,000             -          7,000
          Bad debts written off                                     882,737          576,094          60,000          2,653
          Company’s directors remuneration (Note 34)                521,600          548,650         281,600       279,850

          Depreciation of property, plant and equipment             479,411          596,114          58,573        63,360
          Fair value adjustment                                     266,039                  -             -              -
          Impairment loss on investment
          in subsidiaries                                                  -                 -             -     3,000,000
          Interest expense on : -
          - Bank overdrafts                                           7,228          182,906               5              -
          - Hire purchase                                            30,198             31,076             -              -
          - Loan from a subsidiary                                         -                 -        37,452        43,686
          - Bankers’ acceptances                                     16,437             12,917             -              -




                                                               75
Annual Report 2009                                                                               Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                    cont’d


   33.   PROFIT BEFORE TAXATION (CONT’D)

                                                                        Group                    Company
                                                                2009             2008        2009             2008
                                                                 RM               RM          RM               RM
                                                                           (Restated)                   (Restated)

         Management fee paid to a subsidiary company                -                -      3,600             3,600
         Plant and equipment written off                         223            27,064           -            6,923
         Rental expenses on land and
         buildings                                         219,400           219,500             -                -
         Rental of office equipment                             2,360                -           -                -
         Subsidiary’s directors emoluments (Note 34)       395,178           383,098             -                -

         and after crediting : -

         Allowance for doubtful debts written back             83,513           25,000           -                -
         Deposit forfeited                                 195,630                   -           -                -
         Dividends received from subsidiary companies               -                -   1,553,464        411,486
         Gain on disposal of investment in a subsidiary        67,958                -      1,000                 -
         Gain on disposal of plant and equipment               84,999           64,500           -                -
         Hibah earned                                           7,560            1,126           -                -
         Interest income
         - Fixed deposits                                       2,322           40,053           -                -
         - Others                                               2,600            4,188           -                -
         Rental income on land and buildings                   54,300           48,600           -                -
         Rental income on office                                    -                -    185,760          93,024
         Rental income on factory                                   -            1,950           -                -
         Reversal of accrued contract costs
         no longer required                                    40,445                -           -                -


   34.   DIRECTORS’ REMUNERATION

                                                                        Group                    Company
                                                                2009             2008        2009             2008
                                                                 RM               RM          RM               RM

         Directors of the Company

         Executive directors
         - Other emoluments                                480,000           508,800      240,000         240,000
         - Benefits-in-kind                                    39,100           51,950           -                -
         Non-executive directors
         - Fees                                                36,000           36,000     36,000          36,000
         - Other emoluments                                     5,600            3,850      5,600             3,850

                                                           560,700           600,600      281,600         279,850

         Total excluding benefits-in-kind (Note 33)        521,600           548,650      281,600         279,850




                                                          76
Grand Hoover Berhad (10493-P)                                                                        Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                             cont’d


    34.   DIRECTORS’ REMUNERATION (CONT’D)

                                                                                  Group                        Company
                                                                          2009             2008            2009        2008
                                                                           RM               RM              RM          RM

          Directors of a subsidiary company

          Executive directors
          - Other emoluments                                           395,178         383,098                 -                -
          - Benefits-in-kind                                            41,350          35,050                 -                -

                                                                       436,528         418,148                 -                -

          Total excluding benefits-in-kind (Note 33)                   395,178         383,098                 -                -

          The number of directors of the Company and the subsidiary companies whose total remuneration during the year fell within
          the following bands is analysed below : -

                                                                                          Number of directors
                                                                                  Group                        Company
                                                                          2009             2008            2009        2008

          Directors of the Company
          Executive directors :
          - RM100,000 - RM200,000                                             2               2                -               -
          - RM200,001 - RM300,000                                             1               1                1               1

          Non-Executive directors :
          - Below RM50,000                                                    3               3                3               3

          Directors of a subsidiary company
          Executive directors :
          - RM100,000 - RM200,000                                             1               -                -                -
          - RM200,001 - RM300,000                                             1               2                -                -


    35.   EMPLOYEE BENEFITS EXPENSE

                                                                                  Group                        Company
                                                                          2009             2008            2009        2008
                                                                           RM               RM              RM          RM

          Salaries and allowances                                    2,593,677       2,722,996          245,600         243,850
          Employees Provident Fund                                     248,465         241,866                -           9,600
          Social security costs                                         23,949          24,940                -               -
          Other staff related expenses                                 411,879         420,693            3,520           2,818

                                                                     3,277,970       3,410,495          249,120         256,268

          Staff costs are allocated as follows : -

          Income statement                                           3,277,970       3,373,886          249,120         256,268
          Amount due from /(to) customers for
            contract works (Note 13)                                          -           36,609               -                -

                                                                     3,277,970       3,410,495          249,120         256,268



                                                              77
Annual Report 2009                                                                                 Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                         cont’d


   36.   TAXATION

                                                                                     Group                             Company
                                                                             2009             2008                 2009            2008
                                                                              RM               RM                   RM              RM
                                                                                        (Restated)

         Income tax
         - current year provision                                      1,220,000           668,900                    -          54,000
         - under/(over)provision in previous year                          (1,896)            6,070          (54,000)                  -

                                                                       1,218,104           674,970           (54,000)            54,000
         Deferred taxation (Note 22)                                       85,463            47,000                   -                -

                                                                       1,303,567           721,970           (54,000)            54,000

         Income tax is calculated at the Malaysian statutory tax rate of 25% (2008 – 26%) of the estimated assessable profit for the
         year. In previous year, the Company’s subsidiaries being a Malaysian resident company with a paid-up capital of RM2.5
         million or less were qualified for the preferential tax rates under Paragraph 2A, Schedule 1 of the Income Tax Act, 1967 as
         follows : -

         -     On the first RM500,000 of chargeable income : 20%
         -     In excess of RM500,000 of chargeable income : 26%

         However, the said subsidiaries are no longer qualified for the above preferential tax rates pursuant to Paragraph 2B, Schedule
         1 of the Income Tax Act, 1967 that was introduced with effect from year of assessment 2009.

         The Malaysian corporate statutory tax rate has been reduced from 26% to 25% with effect from year of assessment 2009.
         The computation of deferred tax as at 30th June 2009 has reflected these changes.

         The numerical reconciliation between the effective tax rate and the applicable tax rate is as follows:-

                                                                                     Group                             Company
                                                                             2009             2008                 2009            2008
                                                                               %                 %                   %               %
                                                                                        (Restated)

         Applicable tax rate                                                   25                26                  25              (26)
         Tax effects of :
         - Depreciation on non-qualifying property, plant and
           equipment                                                             2               21                   1               2
         - Non-allowable expenses                                                4               34                   4              23
         - Non-taxable income                                                    -              (18)                 (3)              (4)
         - Deferred tax assets not recognised                                    4             144                    -               9
         - Utilisation of unabsorbed tax losses and capital
           allowances                                                            -                 -                (27)               -
         - Reduction in tax rates for subsidiary companies with
           paid up capital of RM2,500,000 and below                              -               (9)                  -                -
         - Under/(Over)provision in previous year                                -                2                  (5)               -
         - Deferred taxation recognised on taxable temporary
           difference                                                            2                 -                  -                -

         Effective tax rate                                                    37              200                   (5)              4



                                                                      78
Grand Hoover Berhad (10493-P)                                                                                              Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                      cont’d


    36.   TAXATION (CONT’D)

          Unabsorbed tax losses and capital allowances, and unutilised reinvestment allowance of the Group and of the Company
          which are available to set-off against future chargeable income for which the tax effects have not been recognised in the
          financial statements are shown below : -

                                                                                     Group                              Company
                                                                             2009              2008                2009           2008
                                                                              RM                RM                   RM            RM

          Unabsorbed tax losses                                         10,902,000       45,949,800           1,270,000      2,428,000
          Unabsorbed capital allowances                                  1,170,100        1,212,800                     -             -
          Unutilised reinvestment allowance                              1,238,000        1,238,000                     -             -

          The potential deferred tax benefits that have not been accounted for in the financial statements are as follows : -

                                                                        Unabsorbed       Unutilised          Accelerated
                                                        Unabsorbed            capital reinvestment                 capital
          Group                                           tax losses     allowances     allowances            allowances          Total
                                                                RM               RM               RM                  RM           RM

          Balance at 1st July 2007                       11,857,500          310,600          321,900             (34,900)   12,455,100
          Arising during the year                            89,400            4,700                    -          24,800      118,900

          Balance at 30th June 2008                      11,946,900          315,300          321,900             (10,100)   12,574,000
          Effect of reduction in tax rate                   (459,500)        (12,100)          (12,400)              (400)     (484,400)
          Arising /(Utilised/Deleted) during the year     (8,761,900)        (10,700)                   -           4,200    (8,768,400)

          Balance at 30th June 2009                       2,725,500          292,500          309,500              (6,300)    3,321,200



                                                                                                            Accelerated
                                                                                        Unabsorbed                capital
          Company                                                                         tax losses         allowances           Total
                                                                                                RM                   RM            RM

          Balance at 1st July 2007                                                          631,000               (7,000)      624,000
          Arising during the year                                                            99,000                2,500       101,500

          Balance at 30th June 2008                                                         730,000               (4,500)      725,500
          Effect of reduction in tax rate                                                   (123,000)                200      (122,800)
          Utilised during the year                                                          (289,000)             (1,600)     (290,600)

          Balance at 30th June 2009                                                         318,000               (5,900)      312,100

          No deferred tax asset has been recognised as the Group and the Company are unable to ascertain whether it is probable
          that taxable profit will be available against which the deductible temporary differences can be utilised.




                                                                 79
Annual Report 2009                                                                                          Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                     cont’d


   37.   EARNINGS/(LOSS) PER SHARE

         Basic :

         Basic earnings/(loss) per share is calculated by dividing the profit/(loss) for the year attributable to equity holders of the
         Company by the weighted average number of ordinary shares in issue during the financial year.

                                                                                                                       Group
                                                                                                              2009              2008
                                                                                                               RM                RM
                                                                                                                           (Restated)

         Profit /(Loss) for the year attributable to ordinary equity holders of the Company              1,734,469          (870,694)

         Weighted average number of ordinary shares in issue                                           40,000,000        40,000,000

         Basic earnings/(loss) per share (sen)                                                                4.34               2.18

         Diluted :

         The basic and diluted earnings/(loss) per share are equal as the Company has no dilutive potential ordinary shares.



   38.   PRIOR YEAR ADJUSTMENTS

         During the financial year, the Group and the Company changed its accounting policy from cost model to fair value model
         with respect to the investment properties which results in a more relevant presentation. This change has been accounted for
         retrospectively.

         The prior year adjustments affecting the financial year ended 30th June are as follows : -

                                                                                               2007           2008              Total
                                                                                                RM             RM                RM

         Group
         Investment properties                                                           (329,332)                -         (329,332)
         Amortisation of investment properties                                                60,085        21,347             81,432
         Deferred taxation                                                                    28,000         6,000             34,000
         Revaluation reserve                                                                  81,245              -            81,245
         Accumulated losses                                                                   87,628       (19,143)            68,485
         Minority interest                                                                    72,374         (8,204)           64,170

         Company
         Investment properties                                                            113,024                 -         113,024
         Amortisation of investment properties                                            139,761           51,740          191,501
         Accumulated losses                                                              (252,785)         (51,740)         (304,525)




                                                                     80
Grand Hoover Berhad (10493-P)                                                                                          Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                             cont’d


    39.   PURCHASE OF PROPERTY, PLANT AND EQUIPMENT

          During the financial year, the Group and the Company made the following cash payments to purchase property, plant and
          equipment : -

                                                                                  Group                         Company
                                                                         2009               2008           2009             2008
                                                                           RM                RM              RM              RM

          Purchase of property, plant and equipment (Note 6)          669,233          118,180            12,158                -
          Financed by hire purchase arrangements                     (403,000)            (75,000)             -                -

          Cash payments on purchase of property, plant
           and equipment                                              266,233             43,180          12,158                -


    40.   CASH AND CASH EQUIVALENTS

          Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts : -

                                                                                  Group                         Company
                                                                         2009               2008           2009             2008
                                                                           RM                RM              RM              RM

          Housing Development Account                                 284,462        1,674,169                 -                -
          Cash and bank balances                                    4,729,280        2,400,566           940,378           23,972
          Deposits with licensed banks                                 21,193        1,446,321                 -                -
          Bank overdrafts                                              (68,794)      (3,753,964)               -                -

                                                                    4,966,141        1,767,092           940,378           23,972


          Housing Development Account represents monies received from purchase of development properties less payments or
          withdraws pursuant to Section 7A of the Housing Development (Control and Licensing) Act, 1966 and the utilisation is in
          accordance with the Housing Developers (Housing Development Account) Regulations 1991. It is therefore restricted from
          use in other operations.

          As disclosed in Note 18 to the financial statements, deposits with licensed banks amounted to RM21,193 (2008 –
          RM1,446,321) have been pledged to licensed banks as securities for credit facilities and bank guarantees granted to the
          subsidiaries and hence, are not available for general use.




                                                               81
Annual Report 2009                                                                                   Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                    cont’d


   41.   SEGMENTAL INFORMATION

         Segment information is presented in respect of the Group’s business segments. The business segments are based on
         the Group’s management and internal reporting structure. Segment information by geographical segments is not provided
         as the activities of the Group are located principally in Malaysia. Inter-segment pricing is determined based on negotiated
         terms.

         Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated
         on a reasonable basis.

         Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be
         used for more than one period.

                                                                               Investment
                                                         Property             and services,
         2009                                 Trading development Construction and others Elimination                            Total
         Business Segments                         RM              RM              RM              RM              RM              RM

         Revenue

         Revenue from external
         customers                         32,874,114      15,866,451            8,735           6,267                -    48,755,567
         Inter-segment revenue                735,386          42,000      16,543,194       1,801,724     (19,122,304)                -

         Total revenue                     33,609,500      15,908,451      16,551,929       1,807,991     (19,122,304)     48,755,567

         Results

         Segment results                    1,972,865       2,385,423         107,311       1,142,938      (2,019,766)      3,588,771
         Interest income                        42,181             193                -               -        (37,452)          4,922
         Interest expense                      (29,395)        (15,990)         (1,250)        (44,680)        37,452          (53,863)

         Profit before taxation             1,985,651       2,369,626         106,061       1,098,258                       3,539,830
         Taxation                             (620,468)       (689,999)               -        49,063          (42,163)    (1,303,567)

         Profit for the year                1,365,183       1,679,627         106,061       1,147,321                       2,236,263

         Other information

         Segment assets                    27,784,729      16,739,411       6,233,328      29,788,736     (24,747,172)     55,799,032


         Segment liabilities /
         Total liabilities                  7,662,754      13,723,810       6,173,762      11,008,741     (22,692,062)     15,877,005
         Capital expenditure                  284,544         362,531          10,000          12,158                 -       669,233
         Amortisation of prepaid
         lease payments                          7,101                -               -               -               -          7,101
         Depreciation of property,
         plant and equipment                  218,568          88,055          54,207          59,641          58,940         479,411
         Non-cash expenses other
         than depreciation                    535,176                 -       772,818          60,000                 -     1,367,994




                                                                      82
Grand Hoover Berhad (10493-P)                                                                                          Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                             cont’d


    41.   SEGMENTAL INFORMATION (CONT’D)

                                                                              Investment
          2008                                          Property             and services,
          (Restated)                         Trading development Construction and others Elimination                        Total
          Business Segments                      RM             RM               RM            RM             RM              RM

          Revenue

          Revenue from external
          customers                        27,818,774     6,174,551       101,684           11,673                 -   34,106,682
          Inter-segment revenue                 2,456         42,000     3,230,960         576,510      (3,851,926)             -

          Total revenue                    27,821,230     6,216,551      3,332,644         588,183      (3,851,926)    34,106,682

          Results

          Segment results                   2,050,099        494,756    (1,484,663)      (3,092,722)    2,574,838         542,308
          Interest income                     50,748           1,831       36,474                  -       (43,686)        45,367
          Interest expense                    (23,421)          (761)     (191,847)         (54,556)       43,686        (226,899)


          Profit /(Loss) before taxation    2,077,426        495,826    (1,640,036)      (3,147,278)                      360,776
          Taxation                           (616,984)       (99,700)             -         (59,286)       54,000        (721,970)

          Profit /(Loss) for the year       1,460,442        396,126    (1,640,036)      (3,206,564)                     (361,194)

          Other information

          Segment assets                   27,475,089    14,122,547     25,964,424      29,541,373     (22,509,464)    74,593,969


          Segment liabilities /
            Total liabilities               8,512,297    11,731,725     26,077,877      11,908,699     (21,396,230)    36,834,368
          Capital expenditure                 14,090         104,090              -                -               -      118,180
          Amortisation of prepaid
           lease payments                      9,600               -              -                -               -        9,600
          Depreciation of property,
            plant and equipment              179,842           7,901      284,486           64,945         58,940         596,114
          Non-cash expenses other
           than depreciation                 269,187               -      575,906        3,009,743      (3,000,000)       854,836


    42.   COMMITMENTS

                                                                                 Group                          Company
                                                                         2009              2008            2009             2008
                                                                          RM                RM               RM              RM

          Capital commitments

          Property, plant and equipment Contracted but not
            provided for in the financial statements                         -        15,000,000               -       15,000,000




                                                              83
Annual Report 2009                                                                                 Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                    cont’d


   42.   COMMITMENTS (CONT’D)

         In 2004, the Company entered into an agreement with Perbadanan Kemajuan Negeri Kedah (“PKNK”) to acquire a parcel of
         500 acres of freehold land for a total purchase consideration of RM20,000,000. The Company paid RM5,000,000 and the
         balance represents outstanding amount in respect of the said land acquisition, subject to deferred payments to be mutually
         agreed by both parties.

         As per the announcement made to the Bursa Malaysia Securities Berhad on 16th December 2008, PKNK and the Company
         had by way of exchange of letters dated 24th October 2008 and 15th December 2008 respectively mutually agreed to vary
         certain terms and conditions of the Sale and Purchase Agreement (“SPA”) dated 7th May 2003.

         Subsequent variation to the SPA has reduced the land size to 125 acres from original land area of 500 acres and the cash
         consideration of RM5,000,000 paid will be treated as full settlement of the reduced 125 acres of PKNK’s land. Consequently
         the Company is no longer committed to acquire the balance of the land area of 375 acres. The acquisition is currently
         awaiting for the State Government to identify the intended area and issue a block title to be registered under the Company’s
         name.



   43.   CONTINGENT LIABILITIES

                                                                                   Group                          Company
                                                                           2009             2008             2009             2008
                                                                            RM               RM               RM               RM

         Unsecured
         Corporate guarantees issued to bank for bank
          facilities granted to : -
         - subsidiary companies                                                -                -       6,521,000       12,658,000
         - a former subsidiary company                                7,000,000        7,000,000        7,000,000        7,000,000

         Corporate guarantees issued to third parties for
          supplies of goods and services to : -
         - subsidiary companies                                                -                -       8,150,000       13,285,000
         - a former subsidiary company                                         -       6,100,000                 -       6,100,000

                                                                      7,000,000      13,100,000       21,671,000        39,043,000

         Secured
         Bank guarantee issued in
         favour of third parties                                         20,193                 -                -                -

                                                                      7,020,193      13,100,000       21,671,000        39,043,000




                                                                    84
Grand Hoover Berhad (10493-P)                                                                                        Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                               cont’d


    43.   CONTINGENT LIABILITIES (CONT’D)

                                                                                   Group                         Company
                                                                           2009             2008            2009             2008
                                                                            RM               RM               RM               RM

          Amounts utilised are as follows :

          Corporate guarantees issued to banks for bank
           facilities granted to : -
          - subsidiary companies                                               -                -        524,704        3,674,125
          - a former subsidiary company                                 600,000        3,755,691         600,000        3,755,691

          Corporate guarantee issued to a bank for bank
           guarantee facility granted to a former subsidiary
           company. This bank guarantee is issued in favour
           of Controller of Housing for a housing development
           project undertaken by a subsidiary company                   200,000         200,000          200,000          200,000

          Corporate guarantees issued to third parties for
           supplies of goods and services to : -
          - subsidiary companies                                               -                -      1,616,407        1,378,644
          - a former subsidiary company                                        -       1,351,337                 -      1,351,337

                                                                        800,000        5,307,028       2,941,111       10,359,797

          Secured

          The bank guarantee is secured by fixed deposits of a subsidiary, Grand Hoover Property Sdn. Bhd. (Note 18).

          The directors are of the opinion that adequate allowance has been made in the financial statements for any possible
          liabilities.


    44.   SIGNIFICANT EVENT

          On 28th August 2008, Grand Hoover Berhad (“GHB”) entered into a Shares Sale and Purchase Agreement with 2 individuals
          for the disposal of the entire 6,000,000 shares of RM1 each fully paid in L’Grande Development Sdn. Bhd. (“LGD”), a wholly
          owned subsidiary of the Company, for a total cash consideration of RM1,000. The subsidiary was previously reported as part
          of the construction segment. The gain on disposal to the Group amounted to RM67,958.

          As a result of the disposal, LGD ceased to be a subsidiary of the Company.


    45.   MATERIAL LITIGATION

          Group

          A winding-up notice was served by Konsept Karisma Sdn. Bhd. (“KKSB”) against the Company on 24th April 2007 claiming
          for consultancy fees of RM1,631,615 for a proposed project. The Company is of the view that the alleged fees are not due
          as KKSB’s services have not been rendered up to the required stage. Further, the Company has a cross-claim against KKSB
          for a breach of contract and/or negligence in relation to KKSB’s services.

          On 7th May 2007, the Company applied to the High Court for an injunction to restrain KKSB from filing a winding-up petition
          against the Company based on KKSB’s said notice (the “Injunction Suit”).




                                                                85
Annual Report 2009                                                                                  Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                  cont’d


   45.   MATERIAL LITIGATION (CONT’D)

         On 15th May 2007, the Company filed a civil action (the “Civil Action”) in the High Court claiming against KKSB for a breach
         of contract and/or negligence in relation to KKSB’s services, and for a declaration that KKSB’s alleged claim for fee against
         the Company is invalid.

         In the Injunction Suit, the High Court granted an ex-parte interim injunction restrain KKSB from filing a winding-up petition
         against the Company on 10th May 2007. The High Court then proceeded to hear the injunction application interpartes. The
         High Court on 13th November 2007 dismissed the application. The Company filed an appeal to the Court of Appeal and
         at the same time applied for an Erinford injunction to restrain KKSB from filing a winding-up petition against the Company
         pending the outcome of the Company’s appeal. The High Court on 12th December 2007 granted the Erinford injunction.

         The Company and KKSB recorded a Consent Order before the Court of Appeal on 6th October 2009 whereby KKSB agreed
         to pursue its claim for fees in the Civil Action, instead of commencing winding-up proceedings against the Company.

         In the meantime, the Civil Action is undergoing the process of case management. The High Court has fixed 12th January
         2010 for a further case management for the parties to comply with its directions.



   46.   FINANCIAL INSTRUMENTS

         a)   Interest rate risk

              The table below summarises the carrying amounts of the Group’s financial assets and liabilities, categorised by their
              maturity dates, which represent the Group’s exposure to interest rate risk : -

                                                                                                                         Effective
                                                Not later                                   Later               interest/expense
                                                    than         1 to 2        2 to 5        than                 rate during the
               Group                              1 year         years         years      5 years         Total     financial year
                                                      RM           RM            RM           RM            RM                    %

               Financial assets
               - Fixed deposits                    21,193             -             -            -       21,193           2.00-3.10

               Financial liabilities
               - Bank overdrafts                   68,794             -             -            -       68,794                 7.95
               - Hire purchase liabilities       128,245       121,626      232,759        38,008      520,638            4.80-7.51

         b)   Credit risk

              As at 30th June 2009, the Group has trade receivables of approximately RM6.9 million which have been outstanding for
              more than 60 days. The Group has significant concentration of credit risk in the form of outstanding balances due from
              6 major trade debtors of approximately RM4.1 million which represent 32% out of the total trade debtors. However,
              the directors are of the opinion that these amounts outstanding are fully recoverable. Credit risk and receivables are
              monitored on an ongoing basis. These procedures substantially mitigate credit risk of the Group.




                                                                     86
Grand Hoover Berhad (10493-P)                                                                                        Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                                       cont’d


    46.   FINANCIAL INSTRUMENTS (CONT’D)

          c)   Fair values

               The carrying amounts of the financial assets and liabilities of the Group and of the Company as at 30th June approximate
               their fair values except for the following : -

                                                                                        2009                                 2008
                                                                           Carrying               Fair         Carrying                Fair
                                                                            amount               value          amount                value
                                                                                 RM                RM                 RM                RM

               Group
               Financial liabilities
               Hire purchase creditors (Note 27)                           (392,393)                  #         (263,738)                  #
               Other payables (Note 29)                                  (1,005,399)                  *         (106,377)                  *

               Company
               Financial assets
               Amount due from subsidiary companies
                (Note 17)                                                 8,588,364                   *       9,133,460                    *
               Financial liabilities
               Amount due to subsidiary companies
                (Note 17)                                                (1,758,376)                  *       (2,199,326)                  *


               *     It is not possible to establish the fair value of amounts due from/(to) subsidiaries and other payables, Urusiap
                     Sdn. Bhd. (related party of the Company) and L’Grande Development Sdn. Bhd. (former subsidiary company
                     of the Company) due to the lack of fixed repayment term entered by the parties involved. However, the Group
                     and the Company do not anticipate the carrying amounts recorded at the balance sheet date to be significantly
                     different from the values that would eventually be received or settled.

               #     For fixed interest financial instruments, the fair value of this financial instrument is determined by discounting the
                     relevant cash flows using current interest rate for similar financial instruments at the balance sheet date. Since
                     the current interest rates do not significantly differ from the intrinsic rate of this financial instrument, the fair value
                     of this financial instruments therefore, closely approximate its carrying value as at the balance sheet date.

                     The nominal amount of contingent liabilities not recognised in the balance sheet of the Group and of the Company
                     as at the end of the year are disclosed in Note 43. It is not practicable to estimate the fair value of contingent
                     liabilities reliably due to the uncertainties of timing and eventual outcome.

                     The following methods and assumptions are used to estimate the fair values of the following classes of financial
                     instruments : -

                     Cash and cash equivalents, trade and other receivables/payables and short term borrowings

                     The carrying amounts approximate fair values due to the relatively short-term maturity of these financial
                     instruments.




                                                                   87
Annual Report 2009                                                                                         Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                         cont’d


   47.   RELATED PARTY DISCLOSURES

         Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over
         the other party in making financial or operational decisions, or if one other party controls both. The related parties of the
         Group and of the Company are : -

         i)     Subsidiary companies

                Details of the subsidiary companies are shown in Note 9.

         ii)    Companies connected to certain directors of the Company and/or of its subsidiaries.

         iii)   Key management personnel

                Key management personnel are those persons having authority and responsibility for planning, directing and controlling
                the activities of the Group and of the Company, directly or indirectly. The key management personnel of the Group and
                of the Company include the directors of the Company and head or senior management officers.

         a)     Transactions and balances with related parties / companies

                i)    Significant transaction with Emerald East Sdn. Bhd., a company in which certain directors of a subsidiary, namely
                      Lam Weng Wai and Lum Pek Yoke, have financial interests, is as follows : -

                                                                                     Group                            Company
                                                                              2009             2008              2009               2008
                                                                               RM                RM                RM                RM

                      Rental expense                                        84,000           84,000                   -                 -

                      This transaction has been entered in the normal course of business and established under negotiated terms.

                ii)   Significant related company transactions in the financial statements are as follows : -

                                                                                                                      Company
                                                                                                                 2009               2008
                                                                                                                   RM                RM

                      Gross dividend income received from subsidiary companies
                      - Grand Hoover Property Sdn. Bhd.                                                     1,406,464                   -
                      - Heap Wah Enterprise Sdn. Bhd.                                                         147,000          411,486

                      Interest paid and payable to subsidiary company
                      - Heap Wah Enterprise Sdn. Bhd.                                                         (37,452)          (43,686)

                      Management fee paid and payable to subsidiary company
                      - Hoover Management Sdn. Bhd.                                                             (3,600)            (3,600)

                      Rental income received and receivable from subsidiary companies
                      - Hoover Builders Sdn. Bhd.                                                              38,160            23,256
                        (formerly known as L’ Grande Construction Sdn. Bhd.)
                      - Grand Hoover Property Sdn. Bhd.                                                       147,600            23,256
                      - Hoover Tiling Contracts Sdn. Bhd.                                                             -          23,256
                      - L’ Grande Development Sdn. Bhd. (former subsidiary company)                                   -          23,256



                                                                       88
Grand Hoover Berhad (10493-P)                                                                                             Annual Report 2009
    Notes to the Financial Statements
    30th June 2009                                                                                            cont’d


    47.   RELATED PARTY DISCLOSURES (CONT’D)

          a)   Transactions and balances with related parties / companies (CONT’D)

               iii)   Significant related company balances are as follows : -

                                                                                                             Company
                                                                                                         2009        2008
                                                                                                          RM          RM

                      Amount due from subsidiary companies
                      - Heap Wah Enterprise Sdn. Bhd.                                                   40,408          40,408
                      - Hoover Tiling Trading Sdn. Bhd.                                                 37,800         563,840
                      - Hoover Management Sdn. Bhd.                                                    381,453         629,784
                      - Hoover Tiling Contracts Sdn. Bhd.                                              200,000               -
                      - Metro Sun Brickworks Sdn. Bhd.                                                 162,446          98,129
                      - Grand Hoover Property Sdn. Bhd.                                              7,766,257       7,798,902
                      - Hoover Builders Sdn. Bhd.                                                            -           2,397
                        (formerly known as L’ Grande Construction Sdn. Bhd.)

                      Amount due to subsidiary companies
                      - Heap Wah Enterprise Sdn. Bhd.                                                 (997,183)       (971,300)
                      - Grand Hoover Property Sdn. Bhd.                                                      -              (93)
                      - Hoover Builders Sdn. Bhd.                                                     (722,057)       (732,411)
                        (formerly known as L’ Grande Construction Sdn. Bhd.)
                      - Hoover Tiling Trading Sdn. Bhd.                                                (39,136)       (495,522)

          b)   Compensation of Key Management Personnel

               The remuneration paid by the Group and the Company to key management personnel during the year are as follows : -

                                                                                  Group                      Company
                                                                           2009            2008          2009        2008
                                                                            RM              RM            RM          RM

                Short-term employee benefits                            959,978       904,658          281,600         279,850
                Post-employment benefits :
                - Defined contribution plan
                  - EPF                                                  62,208           70,408              -          8,800
                Estimated value of benefits- in-kind                     80,450           87,000              -              -

                                                                      1,102,636      1,062,066         281,600         288,650

               Included in the total key management personnel are : -

                                                                                  Group                      Company
                                                                           2009            2008          2009        2008
                                                                            RM              RM            RM          RM

                Directors' remuneration (Note 34)
                - Director of the Company                               521,600       560,750          281,600         240,000
                - Director of the subsidiaries                          395,178       418,148                -               -

                                                                        916,778       978,898          281,600         240,000



                                                                89
Annual Report 2009                                                                                 Grand Hoover Berhad (10493-P)
   Notes to the Financial Statements
   30th June 2009                                                                                                cont’d


   48.   COMPARATIVE FIGURES

         The following comparative figures have been restated to reflect the change in accounting policy as explained in Note 38 to
         the financial statements : -

                                                                                                                  As previously
                                                                                                  As restated         reported
                                                                                                           RM               RM

         Group

         Balance Sheet
         Investment properties                                                                       1,780,000        2,027,900
         Reserves                                                                                    8,013,157        7,863,427
         Minority interest                                                                           5,772,758        5,836,928
         Deferred tax liabilities                                                                      147,200         181,200

         Income Statement
         Administrative expenses                                                                    (4,280,185)      (4,301,532)

         Company

         Balance Sheet
         Investment properties                                                                       2,700,000        2,395,475
         Reserves                                                                                  16,997,637       17,302,162

         Income Statement
         Other expenses                                                                             (3,072,935)      (3,124,675)


   49.   CURRENCY

         All amounts in the financial statements are stated in Ringgit Malaysia.



   50.   AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS

         These financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
         Directors on 14th October 2009.




                                                                     90
Grand Hoover Berhad (10493-P)                                                                                     Annual Report 2009
    Statement by Directors
    Pursuant to Section 169(15) of the Companies Act, 1965


    We, Dato’ Sim Chong Wan @ Sim Tan Beg and Sim Cheng Young, being two of the directors of Grand Hoover Berhad, do hereby
    state that, in the opinion of the directors, the financial statements set out on pages 30 to 90 are drawn up in accordance with
    applicable approved Financial Reporting Standards issued by the Malaysian Accounting Standards Board and the provisions of
    the Companies Act, 1965 so as to give a true and fair view of the state of affairs of the Group and of the Company at 30th June
    2009 and of the results and the cash flows of the Group and of the Company for the financial year ended on that date.

    Signed on behalf of the Board in accordance with a resolution of the directors




    Dato’ Sim Chong Wan @ Sim Tan Beg                                                                   Sim Cheng Young




    Shah Alam,
    Date: 14th October 2009




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



    I, Dato’ Sim Chong Wan @ Sim Tan Beg, being the director primarily responsible for the financial management of Grand Hoover
    Berhad, do solemnly and sincerely declare that the financial statements set out on pages 30 to 90, to the best of my knowledge
    and belief, are 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
    at Kuala Lumpur
    this 14th day of October
    2009.

    Before me

                                                                                  Dato’ Sim Chong Wan @ Sim Tan Beg




    D. Selvaraj (W 320)
    Commissioner for Oaths




                                                                 91
Annual Report 2009                                                                                    Grand Hoover Berhad (10493-P)
   Properties Held by the Group
   as at 30 June 2009


                                                                       Land Area/                    Net Book /                 Date of
                                                                        Built Up                     Fair Value   Existing    Revaluation/
   Title/Location                     Description         Tenure          Area         Owner          (RM’000)      Use       Acquisition
   No. 63-1A, 1B & 1C               1 Floor of a Six
                                     st
                                                          Freehold     6,287 sqft    Grand Hoover       705       Corporate    Revalued on
   Jalan Anggerik Vanilla T31/T,   Storey Shopoffice                                    Berhad                      office     24-09-2008
   Kota Kemuning,Section 31,
   40460 Shah Alam
   Selangor Darul Ehsan

   No. 63-G,                          Ground Floor        Freehold     6,358 sqft    Grand Hoover      1,638      Corporate    Revalued on
   Jalan Anggerik Vanilla T31/T,     of a Six Storey                                    Berhad                      office     24-09-2008
   Kota Kemuning, Section 31,          Shopoffice
   40460 Shah Alam
   Selangor Darul Ehsan

   No. 51, Jalan 17/45             Four Storey Corner     Freehold     2,997 sqft/   Grand Hoover      1,141      Showroom     Revalued on
   46400 Petaling Jaya                Shop-office                      6,600 sqft      Property                    & office    24-09-2008
   Selangor Darul Ehsan                                                                Sdn Bhd

   No. 46, Jalan 18/2                A Renovated         Leasehold     1,875 sqft/    Heap Wah          227       Showroom     Revalued on
   Section 18,                     Double Storey End      60 years     6,720 sqft     Enterprise                               24-09-2008
   46000 Petaling Jaya                Shophouse          (7-9-2016)                    Sdn Bhd
   Selangor Darul Ehsan

   No. 10,                             Four Storey       Leasehold     1,680 sqft/    Heap Wah          683         Store      Revalued on
   Jalan Petaling Utama 9,            Intermediate        99 years     6,720 sqft     Enterprise                               24-09-2008
   Petaling Utama                      Shop-office       (4-3-2085)                    Sdn Bhd
   46400 Petaling Jaya
   Selangor Darul Ehsan

   No. 23,                          A Ground Floor       Leasehold     1,503 sqft     Heap Wah          400        Vacant      Revalued on
   Jalan Desa Serdang 1,               Shop Lot           99 years                    Enterprise                               24-09-2008
   Desa Serdang, Serdang,                               (25-9-2091)                    Sdn Bhd
   Selangor Darul Ehsan

   No. 32, Lot 1C                   Vacant Land for       Freehold     11,709 sqft    Heap Wah          180        Vacant      Revalued on
   Kesuma Lake                       Bungalow Lot                                     Enterprise                               24-09-2008
                                                                                       Sdn Bhd

   C-OG-02, Perdana Selatan            Service           Leasehold     1,046 sqft     Heap Wah          190       Tenanted     Revalued on
   Taman Serdang Perdana             Condominium          99 years                    Enterprise                               24-09-2008
   (Seksyen 1),                                         (9-11-2093)                    Sdn Bhd
    43300 Seri Kembangan
   Selangor Darul Ehsan

   Desa Jati Bandar Baru Nilai       2 units Low          Freehold      721 sqft      Heap Wah          120        Vacant      Revalued on
   Phase 2                           Medium Cost                                      Enterprise                               24-09-2008
   Lots A-3-19, A-3-20               Apartments                                        Sdn Bhd
   PT. 19062 & 19063
   Mukim of Setul
   District of Seremban
   Negeri Sembilan

   Lot 1832, Mukim of Kajang,         Vacant Land         Freehold     12,247 sqft    Heap Wah          350        Vacant      Revalued on
   District of Hulu Langat,                                                           Enterprise                               24-09-2008
   State of Selangor                                                                   Sdn Bhd

   Lot D1-201, Mutiara              Bungalow Land         Leasehold    21,746 sqft    Heap Wah          540        Vacant      Revalued on
   Heights, Block Title HS(D)                              99 years                   Enterprise                               24-09-2008
   5461, PT No. 9136, Mukim                             (30-07-2100)                   Sdn Bhd
   of Ijok, Kuala Selangor,
   Selangor

   H.S. (D) 73150, P.T.No.224,     1 ½ Storey terrace     Leasehold     418 sqft     Hoover Tiling      300        Vacant      Revalued on
   Pekan Batu 23 Sg Lalang,             factory            99 years                   Contracts                                15-10-2009
   District of Ulu Langat,                              (28-12-2093)                  Sdn Bhd
   Selangor

   C.T. Nos. 25445 & 25446           Two Adjoining        Freehold     11.4 Acres     Metro Sun         317        Vacant      Revalued on
   Lot Nos. 1696 & 1926                Parcels of                                     Brickworks                               24-09-2008
   Mukim of Beranang                Agricultural Land                                  Sdn Bhd
   District of Ulu Langat
   Selangor Darul Ehsan
                                                                        92
Grand Hoover Berhad (10493-P)                                                                                               Annual Report 2009
    Shareholders’ Information
    as at 30 October 2009


    Authorised Share Capital     :    RM100,000,000
    Issued and Paid-up Capital   :    RM40,000,000
    Class of shares              :    Ordinary shares of RM1.00 each
    Voting Rights                :    One vote per ordinary share



    ANALYSIS OF SHAREHOLDINGS

    Size of Shareholdings                                                   Shareholders                    Shareholdings
                                                                         No.               %              No.              %

    1 – 99                                                               248           12.47           10,723            0.03
    100 – 1,000                                                          157             7.89         120,575            0.30
    1,001 – 10,000                                                     1,419           71.34        3,953,732            9.88
    10,001 – 100,000                                                     140             7.04       3,284,606            8.21
    100,001 and 1,999,999                                                 22            1.11       10,865,728           27.16
    2,000,000 and above                                                    3            0.15       21,764,636           54.41
    Grand Total                                                        1,989          100.00       40,000,000         100.00


    SUBSTANTIAL SHAREHOLDERS (EXCLUDING BARE TRUSTEES)
    (As per Register of Substantial Shareholders)

    Name of Substantial Shareholders                                             No. of shares of RM1.00 each held
                                                                            Direct Interest                Indirect Interest
                                                                         No.               %              No.              %

    Dato’ Sim Chong Wan @ Sim Tan Beg                             13,068,637           32.67       2,333,333*            5.83
    Dynamic Merchant Limited                                       2,333,333             5.83               -                  -
    MBf Leasing Sdn Bhd                                            6,561,632           16.40                -                  -
    Sim Chong Leong                                                         -                 -   15,401,970#           38.50
    Sim Cheng Young                                                         -                 -   15,401,970#           38.50

    Notes:

    *    Deemed interest by virtue of his sons, Sim Chong Leong and Sim Cheng Young’s 100% shareholdings in Dynamic Merchant
         Limited pursuant to Section 6A of the Companies Act, 1965.

    #    Deemed interest by virtue of his and his sibling’s collective 100% shareholdings in Dynamic Merchant Limited and Dato’
         Sim Chong Wan @ Sim Tan Beg, his father’s shareholdings in the Company pursuant to Section 6A of the Companies Act,
         1965.




                                                             93
Annual Report 2009                                                                                Grand Hoover Berhad (10493-P)
   Shareholders’ Information
   as at 30 October 2009                                                                                            cont’d


   DIRECTORS’ SHAREHOLDINGS (AS PER REGISTER OF DIRECTORS’ SHAREHOLDINGS)

   Name of Directors                                                             No. of shares of RM1.00 each held
                                                                            Direct Interest                    Indirect Interest
                                                                         No.               %               No.                   %

   Dato’ Sim Chong Wan @ Sim Tan Beg                             13,068,637            32.67        2,333,333*                  5.83
   Sim Chong Leong                                                          -                 -    15,401,970#               38.50
   Sim Cheng Young                                                          -                 -    15,401,970#               38.50
   Hj Basar Bin Juraimi                                               10,666             0.03                   -                  -
   Ir Hj Md Mazlan Bin Md Ismail Merican                              10,666             0.03                   -                  -
   Yap Chi Keong                                                            -                 -                 -                  -

   Notes:

   *     Deemed interest by virtue of his sons, Sim Chong Leong and Sim Cheng Young’s 100% shareholdings in Dynamic Merchant
         Limited pursuant to Section 6A of the Companies Act, 1965.

   #     Deemed interest by virtue of his and his sibling’s collective 100% shareholdings in Dynamic Merchant Limited and Dato’
         Sim Chong Wan @ Sim Tan Beg, his father’s shareholdings in the Company pursuant to Section 6A of the Companies Act,
         1965.



   THIRTY LARGEST SHAREHOLDERS (AS PER RECORD OF DEPOSITORS)

                                                                                                  No. of shares      % of issued
   No.      Name                                                                                      held             capital

   1.       Sim Chong Wan @ Sim Tan Beg                                                            13,068,637           32.67
   2.       Amsec Nominees (Tempatan) Sdn Bhd
            - AmBank (M) Berhad for MBf Leasing Sdn Bhd                                            6,362,666            15.91
   3.       Dynamic Merchant Limited                                                                2,333,333            5.83
   4.       Kool Triumph Sdn Bhd                                                                    1,985,300            4.96
   5.       Eminent Tactics Sdn Bhd                                                                 1,560,600            3.90
   6.       Gigantic Excellence Sdn Bhd                                                             1,400,000            3.50
   7.       Season Mission Sdn Bhd                                                                  1,000,000            2.50
   8.       Chong Swee Choo                                                                          821,733             2.05
   9.       Wong Che King                                                                           573,100              1.43
   10.      Hong Siew Khim                                                                           513,333             1.28
   11.      Rus Binti Kachar                                                                         466,666             1.17
   12.      Tang Yau @ Tang Lin Yau                                                                  388,000             0.97
   13.      Hew Kon Ngow                                                                             251,066             0.63
   14.      Thean Lan Chan @ Then Swee Chen                                                          223,333             0.56
   15.      Yap Shing @ Yap Sue Kim                                                                 218,333              0.55
   16.      MBf Leasing Sdn Bhd                                                                     198,966              0.50




                                                                 94
Grand Hoover Berhad (10493-P)                                                                                       Annual Report 2009
    Shareholders’ Information
    as at 30 October 2009                                                                                              cont’d


                                                                                                         No. of shares     % of issued
    No.      Name                                                                                            held            capital

    17.      Lim Poh Fong                                                                                   171,666             0.43
    18.      Liau Kim Keong                                                                                 153,933             0.38
    19.      Sisna Mujarab Sdn Bhd                                                                          153,333             0.38
    20.      Teo Yu Thian                                                                                   150,000             0.38
    21.      Yap Shing @ Yap Sue Kim                                                                        143,800             0.36
    22.      Ng Leong Piew                                                                                  140,000             0.35
    23.      Wong Woon Yee                                                                                  119,600             0.30
    24.      Ooi Say Inn                                                                                    118,300             0.30
    25.      Ho Tau Tai                                                                                     114,666             0.29
    26.      Teng Soh Chan                                                                                   92,000             0.23
    27.      Nyiam Lee Ping                                                                                  90,700             0.23
    28.      Tai Ah Kew @ Tai Kim Yok                                                                        85,200             0.21
    29.      Lim Wai Seng                                                                                    81,300             0.20
    30.      Lam Weng Wai                                                                                    80,000             0.20
             Total                                                                                        33,059,564           82.65



    The thirty largest shareholders refer to the thirty securities account holders having the largest number of securities according to the
    Record of Depositors (without aggregating the securities from different securities accounts belonging to the same depositor).




                                                                   95
Annual Report 2009                                                                                       Grand Hoover Berhad (10493-P)
This page is left blank intentionally
                                                                                                                                                                   No. of shares held
GRAND HOOVER BERHAD
(Company No : 10493-P)



PROXY FORM

I/We .............................................................................................................................................................................................

of...................................................................................................................................................................................................

being a member of GRAND HOOVER BERHAD, hereby appoint ..................................................................................................

......................................................................................................................................................................................................

of ..................................................................................................................................................................................................

or failing him/her, ..........................................................................................................................................................................

of ..................................................................................................................................................................................................
or failing him/her, THE CHAIRMAN OF THE MEETING, as my/our proxy to attend and vote for me/us on my/our behalf at the
THIRTY-EIGHTH ANNUAL GENERAL MEETING of the Company, to be held at Danau Room, Kota Permai Golf & Country Club,
No. 1, Jalan 31/100A, Kota Kemuning, Section 31, 40460 Shah Alam, Selangor Darul Ehsan on Wednesday, 23 December 2009
at 9.30 a.m. and at any adjournment thereof in the manner indicated below -


 No.        Resolution                                                                                                                                                For             Against
 1          Adoption of Directors’ Report and Audited Financial Statements for the year ended 30 June
            2009 together with Auditors’ Report thereon
 2          Approval of payment of Directors’ fees for the year ended 30 June 2009
 3          Re-appointment of YBhg. Dato’ Sim Chong Wan @ Sim Tan Beg as a Director pursuant to
            Section 129(6) of the Companies Act, 1965.
 4          Re-election of Mr. Sim Cheng Young as a Director who retires by rotation pursuant to Article 92
            of the Articles of Association of the Company
 5          Re-election of Ir. Hj. Md Mazlan Bin Md Ismail Merican as a Director who retires by rotation
            pursuant to Article 92 of the Articles of Association of the Company
 6          Re-appointment of Messrs Kreston John & Gan as Auditors and to authorise the Directors to fix
            their remuneration
 7          Authority under Section 132D of the Companies Act, 1965 for the Directors to issue shares

[Please indicate with an “X” in the spaces provided whether you wish your votes to be cast for or against the resolutions. Unless
otherwise instructed, the proxy may vote as he thinks fit.]




Dated this .......…. day of ….......................... 2009                                                                         .................................…...........................
                                                                                                                                       Signature of Member or Common Seal


NOTES:

1.    A proxy may but need not be a member of the Company, and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply
      to the Company.
2.    The instrument appointing a proxy must be deposited at the Registered Office of the Company at No. 63-G, Jalan Anggerik Vanilla T31/T,
      Kota Kemuning, Section 31, 40460 Shah Alam, Selangor Darul Ehsan, not less than forty-eight (48) hours before the time set for holding the
      meeting or any adjournment thereof.
3.    A member shall be entitled to appoint more than one (1) proxy (subject always to a maximum of two (2) proxies at each meeting) to attend
      and vote at the same meeting. Where a member appoints more than one (1) proxy (subject always to a maximum of two (2) proxies at each
      meeting), the appointment shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy.
4.    If the appointer is a corporation, this form must be executed under its seal or under the hand of its attorney duly authorised.
Fold this flap for sealing




Then fold here




                                                                        AFFIX
                                                                       STAMP




                             The Company Secretaries
                             GRAND HOOVER BERHAD (10493-P)
                             No. 63-G, Jalan Anggerik Vanilla T31/T,
                             Kota Kemuning, Section 31,
                             40460 Shah Alam,
                             Selangor Darul Ehsan.




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