CHAIRMAN'S STATEMENT by yaofenjin

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									                      CHAIRMAN’S STATEMENT
                                                               Dear Shareholders,

                                                 On behalf of the Board members
                                                     of TA ENTERPRISE BERHAD,
                                             it gives me great pleasure to present
                                                    to you the Annual Report and
                                                             Financial Statements of
                                                      the Company and the Group
                                                        for the nancial year ended
                                                                    31 January 2007.
 ANNUAL REPORT 2007
008




                      TA ENTERPRISE BERHAD
                      (194867-M)
FINANCIAL REVIEW                                        conglomerate with the vision of a
FY2007 was a good year especially                       strong global presence.
for our stockbroking division, with
the strong stock market rally in the                    DIVIDEND
last quarter boosting the Group’s                       The Board has decided that the
pre-tax pro t for the nancial year                      Company shall adopt a dividend
to RM143.1million, an increase of                       policy which will pay our shareholders
60% over the previous year’s pre-tax                    consistent yearly dividends ranging
pro t of RM89.5million. We posted                       between 40% and 60% of the Group’s
a consolidated pro t after tax of                       pro t after tax for that nancial year
RM133.7million, a 66% increase                          subject to the availability of cash
compared to RM80.7million earned                        reserves and the Group’s requirement
in the previous year.                                   to retain cash in the business for
                                                        future expansion or investments.         Luxury living exclusively for a discerning few
Overall, we are pleased that all our                                                             @ Idaman Residence
business divisions performed better                     In line with our new dividend policy,
in the year under review. Our earnings                  the Board is recommending a rst          and the exemption of real property
improved to 10.02 sen per share and                     and nal dividend of 7% less taxation     gains tax will help to lift the market
we achieved a full year’s net return                    for shareholders’ approval for the       higher. Given the prevailing positive
on equity (ROE) of 7.1%. Our net                         nancial year ended 31 January           sentiment, we anticipate another year
tangible assets increased to RM1.42                     2007.                                    of excellent performance from the
per share, with our prime properties                                                             stockbroking division.
still based on historical book values.                  OPERATIONS REVIEW AND
In terms of capital appreciation, our                                                            Going forward, TASH intends to
                                                        DEVELOPMENT
share price rose 32.3% in the year                                                               complement our service to our
to RM0.88 as at 31 January 2007.                                                                 valued clients by introducing
                                                        STOCKBROKING                             corporate advisory services and
Since then, our share price has risen                   Malaysia
more than another 150% to reach a                                                                structured products. We are
                                                        TASecuritiesHoldingsBerhad(“TASH”)       optimistic that these new nancial
high of RM2.21 on 21 February 2007,                     registered a very commendable pre-
translating to a market capitalisation                                                           services and products will generate
                                                        tax pro t of RM52.1million or 36%        an additional stream of fee-based
of RM2.9billion.
                                                        of the Group’s pre-tax pro t for the     income for TASH in the future.
With solid shareholders’ equity of                        nancial year under review.The strong
RM1.86 billion as at 31 January                         performance was achieved on the          Hong Kong
2007, the Group is poised to grow                       back of a 62% increase in turnover on    TA Securities (HK) Limited (“TAHK”)
and develop into a well-diversi ed                      Bursa Malaysia to RM310.4 billion for    recorded another fruitful year with
                                                        the period February 2006 to January      pre-tax operating pro t before
                                                        2007 compared to RM191.3 billion         exceptional items jumping by 86% to
                                                        for the previous year’s corresponding    HK$15.7million from HK$8.4million in
                                                        period. Bursa Malaysia had been a        previous year. The strong growth was
                                                        laggard in the last few years, until     mainly propelled by a 53% increase
                                                        towards the last quarter of 2006 when    in brokerage income coupled with
                                                                                                                                                               ANNUAL REPORT 2007


                                                        share prices started picking up, and     an 89% increase in interest income
                                                        played catch-up to its regional peers.   on margin nancing and deposits
                                                                                                 with banks.
                                                        We expect the year 2007 to be a
                                                        sterling year for the Malaysian stock    The Hong Kong market performed
                                                        market with further improvements         extremely well in the year 2006 with
                                                        in corporate earnings and the            the Hang Seng Index surging 27.6%
                                                        strengthening of the Ringgit.            to 20,106 by end-January 2007 from
                                                        Furthermore, the aggressive roll-out     15,753 a year earlier, with market
                                                        of contracts under the 9th Malaysia      capitalization exceeding HK$10,000
                                                        Plan (9MP), a burgeoning corporate       billion in the year under review. The
                                                        sector M&As, strong in ow of foreign     strong rally was mainly boosted by
                                                        funds following a slew of foreign        the strong economic growth in Hong
                                                        exchange liberalisation measures,        Kong and Mainland China and the
                                                        introduction of investment incentives    high in ow of foreign funds into the
                                                        to the Iskandar Development Region       Hong Kong capital market.


      An artist impression of Idaman Residence @ KLCC
                                                                                                                 TA ENTERPRISE BERHAD
                                                                                                                                                  (194867-M)
                      CHAIRMAN’S
                      STATEMENT (cont’d)


                      Maintaining Hong Kong as an                  existing retail business, whilst         new funds, namely TA Global Asset
                      international nancial centre is part         expanding in the area of institutional   Allocator Fund (TAGAAF) and TA
                      of the China Central Government’s            sales, especially for stock index        Asia Paci c Islamic Balanced Fund
                      11th Five-Year plan. The HK Stock            futures. As an e ort to broaden our      (TAIB). TAGAAF, a fund-of-funds that
                      Exchange is committed to further             products and services o erings,          invests in four di erent asset classes
                      strengthening cross-border liaison,          TAF is in the midst of setting up a      - equities, property related securities,
                      facilitating the listing of quality          futures fund management division,          xed income and commodities, aims
                      companies in Hong Kong, enhancing            an exclusive section of the company      to provide investors a global exposure
                      market infrastructure and proactively        that will develop and manage trading     by investing in reputable funds of
                      promoting the Hong Kong market               strategies intended to meet speci c      some of the world’s renowned fund
                      to both local and foreign investors.          nancial objectives of clients.          providers. TAIB is our rst internally
                      However, the future movements of oil                                                  managed foreign fund, focusing on
                      and commodity prices together with           UNIT TRUST AND ASSET                     investing in regional listed equity
                      the anticipated modest adjustment            MANAGEMENT                               bourses that are Syariah compliant.
                      for China’s overheated investment            In July 2006, TA Investment
                      and economic climate will remain                                                      As at nancial year ended 31 January
                                                                   Management Bhd (“TAIM”) and TA
                      the main threat to the Hong Kong                                                      2007, TAIM has 12 unit trust funds
                                                                   Asset Management Sdn Bhd (“TAAM”)
                      market.                                                                               under management, of which 4 are
                                                                   merged their operations of unit trust
                                                                   activities and fund management
                      Faced with increasing competition
                                                                   jointly under TAIM, which had earlier
                      among the local brokerages, TAHK is
                                                                   obtained its fund management
                      taking a serious approach in business
                                                                   licence. As at 31 January 2007, TAIM’s
                      development and cost control to
                                                                   total funds under management
                      ensure a sustainable growth in its
                                                                   amounted to RM647 million, being
                      business.
                                                                   the combination of unit trust funds
                      DERIVATIVES                                  and direct mandate portfolios.
                      TA Futures Sdn Bhd (“TAF”) again             During the year, TAIM emerged
                      retained its position as one of the top      winner of The Star/Standard & Poor’s
                      ranking brokers for the Crude Palm           Investment Funds Award Malaysia
                      Oil Futures traded on Bursa Malaysia         2007 Equity Malaysia (One Year)
                      Derivatives Berhad. The company              Category for our TA High Growth
                      foresees a bullish year ahead with the       Fund. TAIM also launched two
                      approval for local futures brokerages
                      to trade on foreign futures exchanges
                      and the expected growth of CPO
                      Futures in tandem with rising crude
                      palm oil prices.

                      TAF will strive to improve its overall
                      market share by building on its
 ANNUAL REPORT 2007




                      1.   Contemporary tropical resort living

                      2.   Freehold luxury lifestyle bungalows
                           @ Tropicana, Petaling Jaya                       1


                      3.   Datin Tan addressing the
                           audiences during the o cial launch of        2
                           Damansara Idaman, Phase 3,
                                                                            3
                           11 January 2007
010




                      TA ENTERPRISE BERHAD
                      (194867-M)
Islamic	funds	and	8	are	conventional	          fast	 loan	 processing	 time,	 attractive	            properties,	TAP	 hopes	 to	 distinguish	
funds,	 catering	 to	 the	 different	          financing	 package	 and	 good	                        itself	 from	 other	 competitors,	 while	
demands,	 needs	 and	 risk	 profiles	 of	      customer	service,	TAFC	has	built	itself	              striving	 to	 be	 a	 major	 contributor	
our	investors.		                               a	reputation	for	being	one	of	the	top	                to	 the	 Group’s	 earnings	 in	 the	 years	
                                               financiers	for	ESOS	financing.                        ahead.	
TAIM	will	continue	to	strive	to	upgrade	
its	 delivery	 systems	 to	 our	 investors	    ESOS	financing	will	continue	to	be	a	                 • Property Development
as	 well	 as	 increase	 the	 number	 of	       priority	business	focus	for	the	coming	                                 Damansara Idaman
channels	 of	 distribution	 for	 its	 unit	    year,	besides	IPO	and	other	types	of	                 TAP’s	 maiden	 high-end	 Damansara	
trust	 division.	 	 TAIM	 also	 intends	 to	   share	 financing	 business.	 TAFC	 will	              Idaman	 residential	 project	 was	 first	
improve	on	its	agency	development,	            also	 expand	 its	 scope	 of	 business	               launched	 in	 2005,	 and	 marketed	 as	
training	 and	 professionalism	 in	 this	      in	 short	 term	 loan	 financing	 and	                a	 gated	 and	 guarded	 low-density	
increasingly	competitive	industry.             other	 viable	 business	 and	 corporate	
                                                                                                     bungalow	 development	 located	 on	
                                               ventures.
                                                                                                     prime	freehold	land	in	Petaling	Jaya.	
CREDIT                                                                                               All	bungalows	under	this	project	are	
TA	 First	 Credit	 Sdn	 Bhd	 (“TAFC”)	         For	 this	 year,	 the	 business	 from	 its	
                                               expanded	 marketing	 activities	 in	                  built	 with	 exclusive	 individualistic	
turned	 in	 another	 year	 of	 strong	                                                               designs	 based	 on	 contemporary	
performance	 especially	 in	 the	 area	        other	geographical	areas	outside	the	
                                               Klang	Valley	in	West	and	East	Malaysia	               tropical	themes	and	epitomise	resort	
of	 share	 financing.	 Its	 pre-tax	 profit	
                                               has	 increased.	 TAFC	 will	 endeavour	               living	 within	 a	 gated	 and	 guarded	
contribution	 for	 the	 year	 under	
                                               to	increase	its	marketing	activities	in	              environment.
review	 was	 RM29.4million,	 which	
included	a	write-back	of	provision	for	        new	business	opportunities	and	new	
                                               locations.	                                           During	the	year,	the	project	saw	the	
doubtful	debts	amounting	to	RM11.1	                                                                  successful	completion	and	hand-over	
million	 mainly	 due	 to	 the	 recovery	                                                             of	52	units	under	Phases	2A	and	2B	to	
of	 financial	 receivables	 previously	
                                               PROPERTIES
                                                                                                     its	 purchasers.	The	 project’s	 Phase	 3	
provided	for.                                                                                        with	36	bungalow	units	was	officially	
                                               MALAYSIA
                                               The	 year	 2006	 was	 an	 exciting	 year	             launched	 in	 Januar y	 2007	 and	
Having	 established	 its	 presence	 in	                                                              have	 already	 enjoyed	 encouraging	
                                               for	 TA	 Properties	 Sdn	 Bhd	 (“TAP”).	
the	 share	 financing	 business,	 TAFC	
                                               Despite	 a	 generally	 soft	 market	 for	             response.		Sitting	on	the	last	piece	of	
has	 been	 active	 in	 the	 financing	 of	     property	 sales	 in	 the	 earlier	 part	 of	          the	62	acre	Damansara	Idaman	land	
Employee	 Share	 Option	 Schemes	              2006,	TAP	performed	commendably,	                     is	Phase	4,	which	is	scheduled	to	be	
(ESOS)	implemented	for	public	listed	          with	the	local	property	development	                  launched	in	2008.
companies	 on	 Bursa	 Malaysia.	 With	         division	 contributing	 RM38.7million	
its	 experienced	 marketing	 teams,	           or	27%	to	the	Group’s	pre-tax	profit.	                                        Idaman Villas
                                                                                                     Adjacent	 to	 the	 luxury	 bungalow	
                                               During	 the	 year	 under	 review,	 TAP	               development	 and	 also	 situated	 on	
                                               worked	hard	to	establish	its	premium	                 prime	freehold	land	is	Idaman	Villas,	
                                               branding	 as	 a	 luxury	 lifestyle	                   TAP’s	 first	 upscale	 semi-detached	
                                               property	 developer	 in	 the	 market.	                villas	 with	 bungalow	 specifications.	
                                               With	 the	 current	 demand	 for	 niche	               This	project	was	launched	in	February	
                                               premium	residential	and	commercial	                   2007	 after	 the	 completion	 of	 its	                 ANNUAL REPORT 2007




                                                4

                                                                           4.   Spacious living area inspired by modern contemporary themes
                                                                                that create a sense of tranquility

                                                                           5.   Freehold semi-detached villas with bungalow specifications
                                                     5
                                                                                @ Tropicana, Petaling Jaya




                                                                                                                    TA ENTERPRISE BERHAD
                                                                                                                                              (194867-M)	
                      CHAIRMAN’S
                      STATEMENT (cont’d)


                      beautiful	show	village,	and	attracted	           area	comprising	 semi-detached	and	          • Property Investment
                      more	than	50%	sales	bookings	during	             bungalow	homes.	                             The	 Group’s	 other	 portfolio	 of	
                      the	 first	 week	 of	 its	 launch	 with	 its	                                                 properties	including	Menara	TA	One	
                      many	 unique	 selling	 points.	 The	             Phase	1	of	the	commercial	development	       and	 shop	 offices	 at	 USJ	 Taipan	 and	
                      well-thought	out	and	planned	gated	              comprising	24	units	of	4-storey	shop	        Subang	Business	Centre	continue	to	
                      and	 guarded	 development	 offers	               office	 suites	 was	 soft-launched	 in	      yield	good	rental	income	to	the	local	
                      3	 modern	 contemporary	 designs	                December	2006.	                              property	investment	division.
                      for	 its	 54	 semi-detached	 villas	 and	                              Idaman Bintang
                      boasts	 private	 club-like	 recreational	                                                     CANADA
                                                                       TAP	is	currently	awaiting	approval	for	      Our	 award-winning	 triple-A	 rated	
                      amenities	for	its	residents.		                   its	application	of	the	DO	to	develop	        office	 building,	 Terasen	 Centre,	
                                          Idaman Residence             our	3-acre	freehold	commercial	land,	        remains	 the	 Group’s	 flagship	
                      Launched	 in	 October	 2005,	 Idaman	            located	 strategically	 at	 the	 junction	   investment	 property	 on	 the	 West	
                      Residence	 is	 a	 34-storey	 freehold	           of	Jalan	Bukit	Bintang	and	Jalan	Imbi.	      Coast	 of	 Canada,	 being	 the	 proud	
                      luxury	 condominium	 located	                    It	hopes	to	launch	this	project	by	the	      recipient	 of	 many	 prestigious	
                      strategically	 within	 KL’s	 Golden	             end	of	the	year.                             awards	 from	 the	 Building	 Owners	
                      Triangle	 and	 a	 stone’s	 throw	 away	          This	 prime	 development	 will	              and	 Managers	 Association	 of	 British	
                      from	 KLCC.	 It	 is	 designed	 by	 the	          encompass	three	towers	of	executive	         Columbia	 (“BOMA”).	 The	 present	
                      internationally	 renowned	 architect	            service	 suites	 with	 a	 podium	            construction	of	Vancouver’s	pinnacle	
                      Kenneth	 Yeang,	 and	 offers	 9	                 comprising	 alfresco	 F	 &	 B	 dining	       62-storey	 Shangri-La	 hotel-cum-
                      unrivalled	 apartment	 designs	 with	            style	 lots,	 a	 convention	 centre	 and	    residential	 tower	 across	 the	 street	
                      modern	 contemporary	 themes	                    multi-purpose	 function	 halls.	 TAP’s	      from	Terasen	 Centre	 has	 moved	 the	
                      and	 quality	 finishes.	TAP’s	 first	 high-      proposed	 plan	 is	 to	 build	 and	 sell	    downtown	core	westward,	such	that	
                      rise	 development	 is	 scheduled	 for	           two	 towers,	 and	 retain	 one	 tower	       Terasen	 Centre	 is	 now	 strategically	
                      completion	in	end-2008.                          and	the	commercial	facilities	for	our	       positioned	in	the	centre	of	the	city.
                                                                       investment	and	operation	and	at	the	         Since	the	announcement	of	the	2010	
                                                        New Projects   same	 time	 launch	 our	 foray	 in	 the	
                                                       Seri Suria                                                   Winter	 Olympics	 being	 awarded	 to	
                                                                       local	hospitality	business.	                 the	 City	 of	 Vancouver,	 Vancouver’s	
                      TAP	 has	 already	 obtained	 the	
                      Development	 Order	 (“DO”)	 for	                 • Property Construction                      economy	has	seen	buoyant	growth.	
                      the	 proposed	 mixed	 township	                  TAP	 has	 during	 the	 year,	 set	 up	 a	
                      development	 project	 on	 a	 48-acre	            construction	arm	called	TA	Binaprestij	
                      piece	 of	 freehold	 land	 in	 Bandar	           Sdn	Bhd	(“TAB”)	which	will	initially	be	
                      Sri	 Damansara,	 which	 the	 Group	              appointed	as	in-house	contractor	for	
                      purchased	 in	 February	 2006.	 The	             some	 of	 TAP’s	 low-rise	 projects.	 As	
                      project,	 to	 be	 carried	 out	 in	 phases	      such,	 TAB’s	 starting	 order	 book	 will	
                      over	 a	 period	 of	 5	 years,	 will	 consist	   be	 TAP’s	 projects	 like	 Idaman	 Villas	
                      of	 a	 commercial	 development	                  and	Seri	Suria.
                      comprising	 shop	 office	 suites,	 office	
                      complex,	 F	 &	 B/entertainment	 strip	
                      called	Suria	Walk	with	alfresco	dining	
                      style	lots	and	an	exclusive	residential	
 ANNUAL REPORT 2007




                                                                                                                      An artist impression of Suria Square shop-offices
012




                      Seri Suria - 2 1/2 storey semi-detached




                      TA ENTERPRISE BERHAD
                      (194867-M)	
In	the	last	2	to	3	years,	the	residential	        HOTEL OPERATIONS                                   With	 many	 new	 key	 corporate	
p ro p e r t y	 m a r k e t	 h a d	 m ove d	      Our	hotel	operations	for	the	Radisson	             accounts	 aligned	 with	 the	 Hotel,	
significantly.	However	in	the	last	year,	         Plaza	 Hotel	 Sydney	 in	 Australia	               we	 are	 now	 strategically	 positioned	
the	 commercial	 market	 has	 picked	             managed	to	double	its	previous	year’s	             to	 continue	 increasing	 not	 only	 the	
up,	surpassing	the	residential	market	            results	to	contribute	a	commendable	               occupancy	of	the	Hotel,	but	also	our	
to	 the	 extent	 that	 the	 availability	 of	     11%	 to	 the	 Group’s	 pre-tax	 profit	            status	 as	 one	 of	 the	 leading	 5-star	
office	space	is	now	at	record	lows.	              in	 the	 year	 under	 review.	 The	 Hotel	         hotels	in	Sydney.
                                                  consistently	 performed	 well	 against	
Terasen	 Centre	 has	 also	 seen	 a	              its	5-star	competitive	set,	finishing	the	         PROSPECTS AND OUTLOOK
remarkable	 increase	 in	 capital	                year	with	an	increased	average	room	               Malaysia’s	economic	outlook	remains	
appreciation	since	the	Group’s	initial	           rate	and	occupancy	percentage.                     promising	 despite	 anticipation	 of	 a	
investment	in	1995.	Supported	by	the	
                                                  The	Hotel	was	again	the	recipient	of	              slowdown	 in	 the	 global	 economy.	
strong	 economy,	 we	 expect	Terasen	
                                                  Carlson	Hotels’	 President’s	Award	for	            Economic	 growth	 is	 expected	
Centre	 to	 be	 at	 100%	 occupancy	
                                                  2006,	making	it	the	sixth	consecutive	             to	 reach	 5.5%	 in	 2007,	 led	 by	 the	
for	 the	 next	 3	 to	 5	 years,	 providing	
                                                  President’s	 Award	 it	 has	 received	             implementation	 of	 9MP	 projects,	
stable	 rental	 income	 to	 the	 Group.	
                                                  since	opening.	This	Award	recognises	              which	will	in	turn	lift	the	construction	
The	 Group	 will	 continue	 to	 look	 for	
                                                  the	Hotel’s	ability	to	provide	genuine	            sector.	The	recent	exemption	of	real	
opportunities	to	expand	its	property	
                                                  5-star	service	and	is	based	on	guest	              property	 gains	 tax,	 the	 relaxation	 of	
development	 and	 investment	
                                                  feedback.	 It	 was	 also	 a	 finalist	 in	         FIC	rules	on	property	investment	by	
activities	 in	 Canada	 within	 the	 next	
                                                  the	 2006	 City	 of	 Sydney	 Business	             foreigners	and	the	new	measures	to	
few	years.	
                                                  Awards	for	Outstanding	5-star	Hotels.	             revamp	 the	 public	 delivery	 system	
SOUTH AFRICA                                      Further,	 the	 Hotel’s	 fine	 dining	              for	the	property	sector	will	hopefully	
As	part	of	the	Group’s	ongoing	efforts	           restaurant	“Bilson’s”	was	awarded	the	             improve	 the	 property	 market	 which	
to	 divest	 its	 business	 operations	 in	        3	Chef’s	Hats,	making	it	the	only	hotel	           has	 seen	 flat	 growth	 over	 the	 last	
South	Africa,	we	have	entered	into	an	            restaurant	 in	 Sydney	 to	 hold	 this	            two	 years.	While	 growth	 will	 remain	
Agreement	of	Sale	in	September	2006	              prestigious	Award.                                 broad	based,	the	services	sector	will	
to	 sell	 our	 commercial	 building,	 160	                                                           benefit	from	the	added	boost	of	Visit	
                                                  The	 Hotel	 was	 privileged	 to	 host	
Jan	 Smuts	 Avenue,	 in	 Johannesburg	                                                               Malaysia	 Year	 as	 well	 as	 a	 buoyant	
                                                  the	 Australian	 Prime	 Minister	 and	
for	a	total	cash	consideration	of	R73.0	                                                             stock	market.
                                                  his	 cabinet	 for	 a	 2	 day	 conference	
million.		The	completion	of	the	sale	will	        as	 well	 as	 accommodating	 the	                  On	the	external	front,	the	slowdown	
realise	a	respectable	10%	gain	over	the	          English	 Cricket	 Team	 during	 their	             in	the	US	economy	will	pose	a	drag	to	
property’s	current	carrying	value.                Sydney	 games.	 Moving	 into	 2007,	               Malaysia’s	 exports.	 Nevertheless,	 the	
                                                  the	Hotel	has	been	selected	to	host	               US	 economy	 is	 expected	 to	 achieve	
                                                  a	 delegation	 for	 the	 Asia-Pacific	             a	soft	landing	against	a	backdrop	of	
                                                  Economic	 Cooperation	 (APEC)	                     easing	oil	prices	as	well	as	emerging	
                                                  meeting	to	be	held	in	September	as	                signs	of	stabilisation	in	their	housing	
                                                  well	 as	 providing	 accommodation	                market.		
                                                  for	attendees	at	the	World	Youth	Day	
                                                  symposium.
                                                                                                                                                    ANNUAL REPORT 2007




                                                                       Radisson Plaza Hotel Sydney




                                The Health Club                                                      Studio Spa Suite




                                                                                                                    TA ENTERPRISE BERHAD
                                                                                                                                      (194867-M)	
                      CHAIRMAN’S
                      STATEMENT (cont’d)


                      Overall, we expect a favourable                                                               and be recognised as a dynamic
                      economic environment for Malaysia,                                                            financial services and property
                      supported by strong fundamentals.                                                             group. I believe that our passion
                      Monetary policy is expected to be                                                             for excellence and our adaptability
                      supportive of growth with the central                                                         to change in today’s global market
                      bank holding its key rate unchanged,                                                          will put us in good stead to meet the
                      as a result of manageable in ationary                                                         challenges ahead and propel us to
                      pressure, at 3.5% throughout the                                                              greater heights in the days to come.
                      year. Other positive factors include
                      a strengthening Ringgit, current                                                              ACKNOWLEDGEMENT
                      account surplus, the liberalisation                                                           On behalf of the Board, I would like
                      of government policies and capital                                                            to express our gratitude to all our
                      controls and higher foreign funds                                                             valued shareholders, clients, bankers,
                      in ows.                                                                                       business partners and the government
                                                                                                                    authorities, for your continued
                      The Malaysian stockbroking industry
                                                                                                                    support and con dence in our Group.
                      is expected to turn more competitive
                      with the creation of Investment                                                               I am also deeply thankful to the
                      Banks and the inclusion of the 5                                                              management team, remisiers and all
                                                                         Idaman Villas show unit
                      foreign brokers which were issued                                                             employees of the TA Group for their
                      new brokerage licences in 2005/06.                                                            unwavering loyalty, commitment
                      In recent years, institutional investors                                                      and invaluable contribution, without
                      have gained more prominence                        land banks in prime and strategic          which our continuous growth and
                      in the local equity market while                   locations with good development            strong performance over the years
                      participation from foreign investors               potential.                                 would not be possible.
                      have risen since the relaxation of
                      capital controls and removal of                    We realise that innovation,                To my fellow Board members, I
                      the Ringgit peg. As such, it is vital              commitment, hard work and good             thank each and every one of you for
                      that TASH move from being a pure                   management are among the key               your strong support and guidance
                      broker to become a nancial services                ingredients to success in any business     extended to me throughout the year.
                      provider and establish a stronger                  we are in. Ultimately, our aim is to
                      foothold in the institutional business.            create value for our shareholders.
                                               strengthening
                      Wewillfocusonfurtherstrengthening                  With focused strategies in place, we       DATIN TAN KUAY FONG
                      our organisational structure and                   will surely be able to achieve our goals   Executive Chairman
                      increasing our products and services
                      o erings. E orts will be made to
                      look into streamlining some of our
                      common functions and activities
                      among our nancial services entities
                      to achieve greater e ciencyand to
                      enhance cross-selling of products
                      and services.
 ANNUAL REPORT 2007




                      With regard to our fairly new core
                      business, it is the Group’s aspiration
                      to develop TAP into a premier lifestyle
                      property developer, and we are fully
                      dedicated to delivering quality homes
                      and innovative products with good
                      value appreciation to our purchasers.
                      To this end, we have embarked on
                      an active brand-building exercise to
                      enhance TAP’s reputation and market
                      visibility in the industry. We will also
014




                      continue to focus on increasing our


                                            The upcoming freehold commercial
                                                  development @ Bukit Bintang




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                STATEMENT ON
                                                        CORPORATE GOVERNANCE


Corporate Governance is the process and structure used         B. Board Responsibilities
to direct and manage the business and a airs of the            The Board has the overall responsibility for corporate
Company towards enhancing business prosperity and              governance, strategic direction and overseeing the
corporate accountability, with the ultimate objective of       investmentandbusinessoftheGroup.TheBoardmapsout
realising long term shareholders’ value whilst taking into     the Group’s medium and long term strategies in addition
account the interests of stakeholders.                         to its responsibility to review the Management’s action
                                                               plans. The Board’s other primary duties are to conduct
The Board of Directors is committed in ensuring that           regular review of the Group’s business operations and
’The Principles and Best Practices of the Malaysian Code       performances and to ensure that e ective controls and
on Corporate Governance (the “Code”)’ are observed             systems exist to measure and manage business risks.
and practised as a fundamental part of discharging its
responsibilities to protect and enhance shareholders’          The number of Directors’ meetings and attendance for
value.                                                         the nancial year in review are as set out below: -

In preparing this report, the Board has considered the                                           Number of Board Meetings
application of the principles of the Code and the extent,        Directors
which it has complied with the Best Practices of the                                             Held During
                                                                                                                Attended
                                                                                               Tenure in O ce
Code.
                                                                Datin Tan Kuay Fong                  6              6
DIRECTORS
                                                                Zainab Binti Ahmad                   6              6
A. Composition of the Board
As at the date of this statement, the Board consists of         Dato’ Mohamed Bin Abid               6              6
six (6) members; comprising an Executive Chairman,
two (2) Executive Directors and three (3) Independent           Peter U Chin Wei                     6              5
Non-Executive Directors. As such, at least one third of
                                                                Jory Leong Kam Weng                  6              6
the Board are Independent Directors, thereby bringing
objective and independent judgement elements into               Christopher Koh Swee Kiat            4              4
the decision making process of the Board.                       (appointed on 24 May 2006)

The Directors through their vast experiences and
quali cations in economics, accounting, stockbroking,          The Board has set up several Board Committees as
 nance, legal, property development and business               well as Management Committees to assist the Board in
management provide e ective contribution and                   discharging its duties and responsibilities. The functions
support to the functions of the Board. They bring with         and terms of reference of the Board Committees and
them a broad range of skills, experiences and knowledge        Management Committees together with the authority
required to successfully direct and supervise the Group’s      delegated by the Board to these committees are clearly
business activities, which are vital to its success. A brief   de ned in their respective terms of reference. Board
pro le of each Director is presented on pages 6 to 7 of        Committees include the Audit Committee, Nomination
this Annual Report.                                            Committee and Remuneration Committee. Management
                                                               Committees comprise of Option Committee,
There is a clear division of responsibilities at the helm of   Stockbroking Management Committee, Property
                                                                                                                                ANNUAL REPORT 2007


the Group to ensure a balance of authority and power.          Management Committee, TA Investment Management
The Executive Chairman is responsible in ensuring Board        Committee (formerly known as Unit Trust Management
e ectiveness in constructive deliberation on matters           Committee), Tender Committee, Risk Management
in addition to her overall responsibility for operational      Committee, Group Investment Committee, Corporate
performance,       organisational    e ectiveness       and    Governance Committee, Tax Planning Committee,
implementation of the Board’s policies and decisions.          Information Technology Management Committee,
This is balanced by the presence of Independent Non-           Futures Management Committee and ProprietaryTrading
Executive Directors who exercise their independent             Investment Committee.
judgement on issues of strategy, standards of conduct,
resources, processes and safeguarding of interests             The Management Committees meet from time to time
of minority shareholders. In addition, all queries and         to discuss, deliberate, consider and submit proposals
concerns of shareholders and public in general, are            on issues of nancial performance, tax planning, risk
directed to our Independent Non-Executive Director, Mr         management,informationtechnologysupport,corporate
Jory Leong Kam Weng.




                                                                                             TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                      STATEMENT ON
                      CORPORATE GOVERNANCE (cont’d)


                      governance	 issues,	 business	 development,	 investment	            The	Nomination	Committee	considers	and	recommends	
                      activities,	property	development,	stockbroking	and	unit	            to	the	Boards	of	the	Company	and	the	Group,	technically	
                      trust	operations	as	well	as	asset	and	fund	management.	             competent	 persons	 with	 integrity	 and	 a	 strong	 sense	
                      The	 Board	 receives	 regular	 status	 reports,	 updates	 and	      of	 professionalism	 to	 be	 appointed	 to	 the	 relevant	
                      briefing	 from	 these	 committees.	 In	 addition,	 these	           Boards.	 Further,	 the	 Committee	 has	 the	 responsibility	
                      committees	 make	 recommendations	 to	 the	 Board	 for	             to	 assess	 the	 contribution	 of	 each	 individual	 Director	
                      their	final	decision.                                               and	 to	 assess	 the	 overall	 effectiveness	 of	 the	 Boards.	
                                                                                          The	 Committee	 has	 the	 discretion	 to	 recommend	 the	
                      C. Supply of Information                                            size	 and	 composition	 of	 the	 respective	 Boards	 of	 the	
                      Board	meetings	are	held	to	review	Management	reports	
                                                                                          Company	and	the	Group.	
                      on	the	progress	of	business	operations	and	to	consider,	
                      and	if	deemed	fit,	to	approve	such	proposals	that	requires	
                                                                                          In	accordance	with	the	Company’s	Articles	of	Association,	
                      the	sanction	of	the	Board.
                                                                                          at	 least	 one	 third	 of	 the	 Board	 are	 required	 to	 submit	
                      The	 agenda	 of	 the	 Board	 meetings	 together	 with	 its	         themselves	 for	 re-election	 at	 each	 Annual	 General	
                      detailed	 reports,	 proposition	 papers	 and	 other	 relevant	      Meeting.	This	means	that	every	Director	will	stand	for	re-
                      information	on	matters	requiring	the	consideration	of	the	          election	at	least	once	every	three	(3)	years.	
                      Board	are	circulated	to	all	Directors	for	their	perusal	and	
                      consideration	 well	 in	 advance	 of	 each	 Board	 meeting.	        E. Directors’ Training
                      There	 is	 a	 schedule	 of	 matters	 reserved	 specifically	 for	   All	members	of	the	Board	have	attended	and	completed	
                      the	 Board’s	 deliberation	 and	 decision	 which	 includes	         the	Mandatory	Accreditation	Programme	as	prescribed	by	
                      the	 overall	 Group	 strategy,	 acquisition	 and	 disposal	 of	     Bursa	Malaysia	Securities	Berhad	(“Bursa	Malaysia”)	and	had	
                      material	assets	and	approval	of	corporate	plans,	financial	         also	accumulated	the	full	Continuing	Education	Programme	
                      statements,	budgets	and	dividends.	The	Board	papers	are	            (“CEP”)	 points	 as	 at	 31	 January	 2007.	 The	 Directors	 had	
                      comprehensive	 and	 encompass	 both	 quantitative	 and	             attended	the	following	courses	during	the	year	:-
                      qualitative	factors	so	that	informed	decisions	are	being	           •	   Implementing	Strategic	Marketing	Plan	(2	days)
                      concluded.	 All	 proceedings	 from	 the	 Board	 meetings	           •	                                                      	
                                                                                               Highlights	of	the	New	Financial	Reporting	Standards	
                      are	 recorded	 and	 confirmed	 by	 the	 Chairman	 of	 the	          	    in	Malaysia	(2	days)
                      meeting.
                                                                                          •	   Financial	Reporting	Standards	&	Salient	Features
                                                                                          	    (2	days)
                      The	Board	has	access	to	all	information	within	the	Group	
                                                                                          •	   National	Accountants	Conference	2006	(2	days)
                      and	 also	 to	 the	 advice	 or	 services	 of	 the	 Company	
                                                                                          •	   MAICSA	Conference	2006	(2	days)
                      Secretary	and	Senior	Management	in	carrying	out	their	
                                                                                          •	   Hedge	Fund	for	Top	Management	(1	day)
                      duties.	The	Directors	seek	external	professional	advice,	if	
                      required.                                                           Apart	 from	 the	 above,	 the	 directors	 are	 encouraged	 to	
                                                                                          attend	seminars	and	other	training	programmes	to	keep	
                      D. Appointments of the Board and Re-election                        abreast	with	the	development	in	the	industry	and	in	the	
                      The	 appointment	 of	 any	 new	 member(s)	 to	 the	 Board	          market	place.
                      is	 proposed	 and	 recommended	 by	 the	 Nomination	
                      Committee.	 The	 Nomination	 Committee	 had	 passed	                DIRECTORS’ REMUNERATION
                      fifteen	(15)	resolutions	during	the	financial	year.
 ANNUAL REPORT 2007




                                                                                          A	 Remuneration	 Committee	 reviews	 the	 remuneration	
                      The	 members	 of	 the	 Committee	 which	 is	 wholly	                packages	 of	 the	 Directors	 and	 subsequently	 furnishes	
                      comprised	of	Independent	Non-Executive	Directors	are	               recommendations	to	the	Board	on	specific	adjustments	
                      as	follows:                                                         in	 remuneration	 to	 commensurate	 with	 the	 respective	
                                                                                          contributions	 of	 the	 Directors.	 The	 members	 of	 the	
                      Peter U Chin Wei (Chairman)                                         Committee	which	is	wholly	comprised	of	Independent	
                      Independent Non-Executive Director                                  Non-Executive	Directors	are	as	follows:

                      Jory Leong Kam Weng                                                 Peter U Chin Wei (Chairman)
                      Independent Non-Executive Director                                  Independent Non-Executive Director

                      Christopher Koh Swee Kiat - appointed on 15 May 2007                Jory Leong Kam Weng
016




                      Independent Non-Executive Director                                  Independent Non-Executive Director




                      TA ENTERPRISE BERHAD
                      (194867-M)	
Christopher Koh Swee Kiat - appointed on 9 March 2007             Audit	 Committee	 assists	 the	 Board	 in	 reviewing	 the	
Independent Non-Executive Director                                quarterly	reports	to	Bursa	Malaysia	and	the	annual	report	
                                                                  to	 shareholders	 to	 ensure	 its	 accuracy,	 adequacy	 and	
Datin Tan Kuay Fong - resigned on 9 March 2007                    completeness.	The	 Statement	 by	 Directors	 pursuant	 to	
Executive Chairman                                                Section	 169	 of	 the	 Companies	 Act	 1965	 is	 set	 out	 on	
                                                                  page	34	of	this	Annual	Report.
The	Remuneration	Committee	passed	five	(5)	resolutions	
upon	reviewing	the	remuneration	packages	of	directors	            B. Internal Control
and	senior	management	during	the	financial	year.                  The	Board	acknowledges	its	responsibility	for	the	Group’s	
                                                                  systems	 of	 internal	 controls	 and	 risk	 management	 and	
The	 Remuneration	 Committee	 is	 also	 authorised	 by	           for	 reviewing	 the	 effectiveness	 of	 those	 systems.	 Such	
the	 Board	 to	 assess	 and	 review	 from	 time	 to	 time	 the	   systems	 are	 designed	 to	 manage	 rather	 than	 eliminate	
remuneration	 packages	 of	 the	 Directors	 and	 Senior	
                                                                  the	 risk	 of	 failure	 to	 achieve	 business	 objectives.	 Any	
Management	personnel	in	all	forms	and	also	to	review	
                                                                  system	can	only	provide	a	reasonable	but	not	absolute	
Directors’	fees	of	the	Company	and	the	Group.	However,	
                                                                  assurance	against	material	misstatement,	loss	or	fraud.
the	 	 remuneration	 for	 the	 Independent	 Non-Executive	
Directors	 is	 determined	 by	 the	 Board	 as	 a	 whole.	
                                                                  Information	on	the	Group’s	internal	control	is	presented	
Recommendations	of	the	Committee	will	be	reported	to	
                                                                  in	the	Statement	on	Internal	Control	laid	out	on	pages	21	
the	Board	for	their	final	decision.
                                                                  to	23	of	this	Annual	Report.
The	 remuneration	 of	 the	 Directors	 of	 the	 Company	
during	the	financial	year	are	disclosed	in	Note	35	of	the	        C. Relationship with Auditors
Audited	Financial	Statements.                                     The	role	of	the	Audit	Committee	in	relation	to	external	
                                                                  auditors	may	be	found	in	the	Report	on	Audit	Committee	
COMMUNICATION WITH SHAREHOLDERS                                   set	 out	 on	 pages	 19	 to	 20.	The	 external	 auditors	 meet	
AND INVESTORS                                                     with	 the	 Audit	 Committee	 to	 present	 the	 scope	 of	 the	
                                                                  financial	audit	and	to	review	the	results	of	the	said	audit	
The	 Board	 recognises	 the	 importance	 of	 maintaining	         after	 the	 conclusion	 of	 the	 audit.	 The	 Company	 has	
effective	communication	with	its	shareholders.	Thus,	the	         always	 maintained	 a	 close	 and	 transparent	 relationship	
annual	report	contains	a	balance	of	reports	on	results	and	       with	 its	 auditors	 in	 seeking	 professional	 advice	 and	
progress	 of	 the	 business.	 In	 addition,	 the	 shareholders	   ensuring	 compliance	 with	 the	 accounting	 standards	 in	
and	 investors	 have	 timely	 and	 convenient	 access	 to	        Malaysia.
public	information	on	the	TA	Group	via	the	Company’s	
annual	 report,	 circulars	 to	 shareholders	 and	 Bursa	 LINK	   COMPLIANCE STATEMENT
for	corporate	announcements,	quarterly	financial	results	
and	annual	report.                                                The	Board	considers	that	it	has	complied	with	“The	Best	
                                                                  Practices	 of	 the	 Code”	 for	 the	 financial	 year	 ended	 31	
The	 main	 forum	 for	 dialogue	 with	 shareholders	 is	          January	2007.
during	 the	 Annual	 General	 Meeting.	 At	 each	 Annual	
General	 Meeting,	 the	 Board	 presents	 the	 progress	
                                                                  OTHER INFORMATION
and	 performance	 of	 the	 business	 and	 encourages	
shareholders	 to	 participate	 in	 a	 question	 and	 answer	
                                                                  A. Share Buyback
session.	 Directors	 and	 senior	 management	 staff	 are	
                                                                                                                                      ANNUAL REPORT 2007


                                                                  There	was	no	share	buybacks	scheme	in	place	during	the	
available	 to	 respond	 to	 shareholders’	 questions	 during	
                                                                  financial	year	ended	31	January	2007.
the	meeting.	Extraordinary	General	Meetings	are	held	as	
and	when	required.
                                                                  B. Options, Warrants or Convertible
The	Company	also	maintains	a	website	at	www.ta.com.my	               Securities Exercised
that	 allows	 all	 the	 shareholders	 and	 investors	 to	 gain	   There	were	no	options,	warrants	or	convertible	securities	
access	to	information	about	the	Group.                            exercised	 during	 the	 financial	 year	 ended	 31	 January	
                                                                  2007.
ACCOUNTABILITY AND AUDIT
                                                                  C. American Depository Receipt (ADR) or
A. Financial Reporting                                               Global Depository Receipt (GDR) Programme
The	 Board	 is	 responsible	 for	 ensuring	 the	 proper	          The	 Company	 has	 not	 sponsored	 any	 ADR	 or	 GDR	
maintenance	 of	 accounting	 records	 of	 the	 Group.	 The	       programme.




                                                                                                  TA ENTERPRISE BERHAD
                                                                                                                        (194867-M)	
                      STATEMENT ON
                      CORPORATE GOVERNANCE (cont’d)


                      D. Sanctions and/or Penalties Imposed                              develop	 a	 piece	 of	 freehold	 vacant	 land	 held	 under		
                      Bursa	 Malaysia	 had	 on	 9	 April	 2007	 imposed	 a	 fine	 on	    No.	 HS	 (D)	 32163	 PT	 938	 in	 Mukim	 Kuala	 Lumpur,	   	
                      Mr	 Peter	 U	 Chin	 Wei	 for	 breach	 of	 Paragraph	 16.11(b)	     Wilayah	 Persekutuan	 measuring	 12,872.689	 square	       	
                      of	 the	 Listing	 Requirements	 of	 Bursa	 Malaysia	 for	 the	     metres,	Dato’	 Mohamed	Bin	Abid	is	deemed	to	have	an	      	
                      late	submission	of	Annual	Report	and	Quarterly	Report	             interest	 in	 the	 Joint	 Venture	 by	 virtue	 of	 Section		
                      of	 Kumpulan	 Europlus	 Berhad,	 a	 company	 in	 which	            122A	 of	 the	 Companies	 Act,	 1965.	 Section	 122A	 of	  	
                      Mr	 Peter	 U	 Chin	Wei	 acts	 as	 a	 Non-Independent	 Non-         the	 Companies	 Act,	 1965	 was	 invoked	 because	 Dato’	
                      Executive	Director.                                                Mohamed	 bin	 Abid	 is	 currently	 an	 Executive	 Director		
                                                                                                                                                    	
                                                                                         and	 Shareholder	 of	 the	 Company	 and	 a	 Director	 of	TA	
                      Save	as	disclosed	above,	the	Company	is	not	aware	of	any	          Properties	Sdn	Bhd,	whilst	his	son,	Hafez	bin	Mohamed,	is	
                      other	sanctions	or	penalties	imposed	on	the	Company,	              a	Director	and	Shareholder	of	Beringin	Terrace	Sdn	Bhd.
                      its	subsidiaries,	Directors	or	management	by	the	relevant	
                      regulatory	 bodies	 that	 have	 been	 made	 public	 which	         G. Variation in Results
                      have	yet	to	be	disclosed.                                          There	 were	 no	 variances	 of	 10%	 or	 more	 between	 the	
                      E. Non-Audit Fees                                                  audited	results	of	the	financial	year	and	the	announced	
                      The	 amount	 of	 non-audit	 fees	 paid	 to	 the	 External	         unaudited	results.
                      Auditors,	 Messrs.	 Ernst	 &	Young,	 by	 the	 Group	 and	 the	
                      Company	for	the	financial	year	amounted	to	RM25,000	               H. Profit Guarantee
                      and	RM5,000	respectively.                                          During	the	financial	year,	there	were	no	profit	guarantees	
                                                                                         given	by	the	Company.
                      F. Material Contracts Involving Directors’ and
                         Major Shareholders’ Interest                                    I. Revaluation Policy on Landed Properties
                      Save	as	disclosed	below,	there	were	no	material	contracts	
                                                                                         The	 Group	 does	 not	 revalue	 its	 landed	 properties	
                      during	 the	 current	 financial	 year,	 entered	 into	 by	 the	
                                                                                         classified	as	Property,	Plant	and	Equipment,	Investment	
                      Company	 or	 its	 subsidiaries	 involving	 the	 interests	 of	
                      Directors	or	major	shareholders.                                   Property,	Land	Held	for	Property	Development,	Property	
                                                                                         Development	 Costs,	 Properties	 Held	 for	 Resale,	 Land	
                      In	 the	 Joint	 Venture	 between	 TA	 Properties	 Sdn	 Bhd	        Held	for	Resale	and	Non-Current	Asset	Classified	as	Held	
                      and	 Beringin	 Terrace	 Sdn	 Bhd	 which	 was	 entered	 to		        for	Sale.




                      STATEMENT ON DIRECTORS’ RESPONSIBILITY IN
                      RELATION TO THE FINANCIAL STATEMENTS
                      The	 Board	 of	 Directors	 is	 required	 under	 Paragraph	         •	 The	Group	and	the	Company	have	used	appropriate	 	
                      15.27	 (a)	 of	 the	 Listing	 Requirements	 of	 Bursa	 Malaysia	   	 accounting	policies	and	are	consistently	applied;
                      Securities	 Berhad	 to	 issue	 a	 statement	 explaining	 their	
                      responsibility	for	preparing	the	annual	audited	financial	
 ANNUAL REPORT 2007




                                                                                         •	 Reasonable	 and	 prudent	 judgements	 and	 estimates	
                                                                                                                                                	
                      statements.                                                        	 were	made;	and

                      The	 Directors	 are	 required	 to	 ensure	 that	 the	 financial	   •	   All	 applicable	 approved	 accounting	 standards	 in	
                                                                                                                                                  	
                      statements	 for	 each	 financial	 year	 are	 properly	 drawn	      	    Malaysia	have	been	followed	and	confirmed	that	the	 	
                      up	in	accordance	with	the	provisions	of	the	Companies	             	    financial	statements	have	been	prepared	on	a	going	 	
                      Act,	1965	and	in	compliance	with	applicable	approved	
                                                                                         	    concern	basis.
                      accounting	standards	to	give	a	true	and	fair	view	of	the	
                      state	of	affairs	of	the	Group	and	the	Company	as	at	the	
                                                                                         The	 Directors	 are	 responsible	 for	 keeping	 proper	
                      end	of	the	financial	year	and	of	the	results	and	cash	flows	
                                                                                         accounting	 records,	 which	 discloses	 with	 reasonable	
                      of	the	Group	and	the	Company	for	the	financial	year.
                                                                                         accuracy	 the	 financial	 position	 of	 the	 Company	 and	 of	
                      In	preparing	those	financial	statements,	the	Directors	are	        the	Group	at	any	time	and	to	ensure	that	these	financial	
018




                      satisfied	that:	-                                                  statements	comply	with	the	Companies	Act,	1965.




                      TA ENTERPRISE BERHAD
                      (194867-M)	
                                                                                                REPORT ON
                                                                                          AUDIT COMMITTEE


1. MEMBERSHIP AND ATTENDANCE                                            	     	   	    >	he/she	 must	 be	 a	 member	 of	 one	 of	 the	      	
                                                                        	     	   	    	 associations	of	accountants	specified	in	Part	II	of		
The	Audit	Committee	(Committee)	was	set	up	on	26	May	                   	     	   	    	 the	1st	Schedule	of	the	Accountants	Act	1967;		
1994.	The	Committee	comprises	the	following	members	                    	     	   	    	 or
and	details	of	attendance	of	each	member	at	Committee	                  	     	   •	                                                         	
                                                                                       fulfils	 such	 other	 requirements	 as	 prescribed	 by	
meetings	held	during	the	financial	year	are	as	follows:	-               	     	   	    Bursa	Malaysia	Securities	Berhad.

                                       Number of Committee Meetings
                                                                        2.2 Chairman
   Composition of                                                       The	Chairman	of	the	Committee	shall	be	an	independent	
   Audit Committee                       Held During                    non-executive	director	nominated	by	the	Board	and	shall	
                                                          Attended
                                       Tenure in Office
                                                                        be	appointed	amongst	the	members.
   Jory Leong Kam Weng                        4              4
   (appointed as Chairman                                               2.3       Objectives
   on 23 June 2006)                                                     i.	 	     To	provide	an	additional	assurance	to	the	Board	by	  	
   Chairman / Independent
                                                                        	 	                                                            	
                                                                                  giving	objective	and	independent	review	of	financial,	
   Non-Executive Director
                                                                        	 	       operational	 and	 administrative	 controls	 and	     	
   Datin Tan Kuay Fong                        4              4          	 	       procedures.	
   Member / Executive Chairman
                                                                                                                                  	
                                                                        ii.	 	 To	assist	the	Board	in	establishing	and	maintaining	
   Christopher Koh Swee Kiat                  3              3                                                                    	
                                                                        	 	 internal	 controls	 for	 areas	 of	 risk	 as	 well	 as	
   (appointed on 24 May 2006)                                           	 	 safeguarding	of	assets.
   Member / Independent
   Non-Executive Director                                                                                                          	
                                                                        iii.		 To	 assess	 and	 supervise	 the	 quality	 of	 audits	
                                                                        	 	 conducted	by	the	internal	and	external	auditors.
   Peter U Chin Wei                           2              2
   (resigned on 23 June 2006)
   Member / Independent                                                                                                           	
                                                                        iv.		 To	 reinforce	 the	 independence	 of	 the	 company’s	
   Non-Executive Director                                               	 	 external	auditor,	and	ensure	that	the	auditors	have	  	
                                                                        	 	 free	reign	in	the	audit	process.
Mr	Jory	Leong	Kam	Weng	is	a	Certified	Public	Accountant	
of	 CPA	 Australia	 and	 also	 a	 member	 of	 the	 Malaysian	           v.	   	   To	 provide	 a	 forum	 for	 regular,	 informal	 and	 	
Institute	of	Accountants	(“MIA”).                                       	     	   private	 discussions	 between	 the	 external	 auditor	
                                                                                                                                       	
                                                                        	     	   and	directors	who	have	no	significant	relationships	 	
Mr	 Christopher	 Koh	 Swee	 Kiat	 holds	 an	 ACCA	                      	     	   with	management.
postgraduate	diploma	in	Accounting	and	Finance.
                                                                                                                                       	
                                                                        vi.		 To	 reinforce	 the	 objectivity	 of	 the	 internal	 audit	
2. COMPOSITION AND TERMS OF REFERENCE                                   	 	 department.

2.1 Members                                                             2.4       Authority
                                                          	
i.	 	 The	 Committee	 shall	 be	 appointed	 by	 the	 Board	             i.	 	     The	 Committee	 is	 authorised	 by	 the	 Board	 to	       	
	 	 pursuant	to	a	Board	Resolution.                                     	 	       investigate	any	activities	within	its	terms	of	reference	 	
                                                                                                                                                   ANNUAL REPORT 2007


                                                                        	 	       and	shall	have	unlimited	access	to	both	the	internal	     	
                                                                  	
ii.	 	 It	 shall	 comprise	 of	 at	 least	 three	 (3)	 members	 of	
	 	 whom	 a	 majority	 shall	 be	 independent	 non-	                    	 	                                                                 	
                                                                                  and	 external	 auditors,	 as	 well	 as	 the	 employees	 of	
	 	 executive	directors.                                                	 	       the	Group.

iii.		   At	least	one	member	of	the	Committee:                                                                                       	
                                                                        ii.	 	 It	shall	also	have	the	authority	to	obtain	independent	
	 	      •	 must	be	a	member	of	the	MIA;	                                                                                            	
                                                                        	 	 legal	 or	 other	 professional	 advice	 as	 it	 considers	
	 	      •	 if	 he/she	 	 is	 not	 a	 member	 of	 the	 MIA,	 he/she		   	 	 necessary.
	 	      	 must	have	at	least	three	years’	working	experience	      	
	 	      	 and	:                                                        iii.		                                                               	
                                                                                  It	 shall	 also	 have	 the	 power	 to	 establish	 Sub-Audit	
	 	      	 >	he/she	 must	 have	 passed	 the	 examinations	         	   	 	       Committee(s)	 to	 carry	 out	 certain	 investigations	     	
	 	                                                                 	
         	 	 specified	 in	 Part	 1	 of	 the	 1st	 Schedule	 of	 the	   	 	       on	behalf	of	the	Committee	in	such	manner	as	the	          	
	 	      	 	 Accountants	Act	1967;	or                                   	 	       Committee	shall	deem	fit	and	necessary.




                                                                                                               TA ENTERPRISE BERHAD
                                                                                                                                     (194867-M)	
                      REPORT ON
                      AUDIT COMMITTEE (cont’d)


                      2.5 Functions, Duties and Responsibilities                        •	   To	review	the	financial	statements	before	the	quarterly	    	
                                                                                   	
                      i.	 	 To	review	with	the	internal	and	external	auditors	their	    	    announcements	to	Bursa	Malaysia	Securities	Berhad.
                      	 	 audit	plans	and	reports.                                      •	   To	 discuss	 the	 audit	 plan	 with	 external	 auditors	 and	
                                                                                                                                                         	
                      ii.	 	 To	review	the	scope	of	the	internal	audit	programme	
                                                                                	       	    scope	for	the	year	as	well	as	the	audit	procedures	to	      	
                      	 	 and	procedures,	consider	the	results	of	the	internal	 	       	    be	utilised.
                      	 	 audit	investigations.                                         •	   To	 discuss	 with	 internal	 auditors	 on	 its	 audit	 plan,	
                                                                                                                                                         	
                                                                                        	    processes	and	scope,	adequacy	of	resources	and	co-	
                                                                              	
                      iii.		 To	evaluate	the	adequacy	and	effectiveness	of	the	
                                                                                        	    ordination	with	external	auditors.
                      	 	 internal	control	systems	and	accounting	policies.
                                                                                        •	   To	review	the	reports	prepared	by	the	internal	auditors	    	
                                                                                 	
                      iv.		 To	review	the	assistance	given	by	the	officers	of	the	      	    on	the	state	of	internal	control	of	the	Group.
                      	 	 Group	to	the	external	auditors.

                                                                                  	
                      v.	 	 To	 review	 the	 quarterly,	 annual	 and	 consolidated	     4. INTERNAL AUDIT FUNCTION
                      	 	 financial	 statements	 of	 the	 Company	 before	        	
                      	 	 submission	to	the	Board,	focusing	particularly	on	            The	Group	has	an	established	internal	audit	department,	
                                                                                        which	 assists	 the	 Committee	 in	 the	 discharge	 of	 its	
                      	   	   (a)	 any	changes	in	accounting	policies	and	practices;	   duties	and	responsibilities.	The	Committee	is	aware	that	
                      	   	   (b)	 significant	adjustments	arising	from	the	audit;	     an	independent	and	resourceful	internal	audit	function	
                      	   	   (c)	 the	going	concern	assumption;                        is	essential	in	ensuring	that	the	internal	control	system	
                      	   	   (d)	 compliance	with	accounting	standards;	and            is	effective.	
                      	   	   (e)	 other	legal	requirements.
                                                                                        The	main	role	of	the	internal	audit	function	is	to	review	
                      vi.		 To	review	any	related	party	transactions	within	the	
                                                                               	        the	 effectiveness	 of	 the	 internal	 control	 system	 and	
                      	 	 Company	or	Group.                                             this	 review	 is	 performed	 in	 an	 impartial,	 proficient	 and	
                                                                                        professional	 manner.	 The	 internal	 audit	 department	
                      vii.		 To	 identify	 and	 direct	 any	 special	 projects	 or	
                                                                                  	     covers	the	review	and	the	adequacy	of	risk	management;	
                      	 	 investigations	deemed	necessary.                              operational	 controls;	 compliance	 with	 established	
                                                                                        procedures,	 guidelines	 and	 statutory	 requirements;	
                                                                             	
                      viii.	 To	nominate	a	person	or	persons	as	the	Company’s	          quality	of	assets;	management	efficiency	and	comparison	
                      	 	 external	auditors.                                            of	 the	 level	 of	 customer	 services	 provided	 by	 other	
                                                                                        competitors.
                                                                                  	
                      ix.		 To	 carry	 out	 such	 other	 functions	 and	 considers	
                      	 	 other	topics,	as	may	be	agreed	upon	with	the	Board.
                                                                                        A	risk-based	approach	is	adopted	for	all	audit	programs.	
                      x.	 	 To	 review	 reports	 and	 consider	 recommendations	
                                                                               	        These	audit	programs	ensure	that	the	instituted	controls	
                      	 	 of	the	Sub-Audit	Committee(s),	if	any.                        are	 appropriate,	 effectively	 applied	 and	 reduce	 the	 risk	
                                                                                        of	exposures	to	an	acceptable	level	which	is	consistent	
                                                                                        with	the	Group’s	risk	management	policy.
                      3. SUMMARY OF ACTIVITIES

                      The	Committee	meets	at	least	four	(4)	times	annually,	or	         5. ALLOCATION OF OPTIONS
 ANNUAL REPORT 2007




                      more	frequently	as	circumstances	dictate.	As	part	of	its	
                      duty	to	foster	open	communication,	the	Head	of	Internal	          Subsequent	 to	 the	 termination	 of	 the	 previous	
                      Audit,	 the	 relevant	 heads	 for	 the	 departments	 being	       Employees’	 Share	 Option	 Scheme	 on	 9	 January	 2004,	
                      audited	(if	required)	and	representatives	of	the	external	        the	Company	has	adopted	an	Employees’	 Share	Option	
                      auditors	(if	required)	will	normally	attend	the	meetings.	        Scheme	which	became	effective	on	30	January	2004.	To-
                      Other	 Board	 members	 and/or	 officers	 of	 the	 Company	        date,	the	Company	has	yet	to	allocate	options	in	regard	
                      or	Group	may	attend	meetings	upon	specific	invitation	            to	 the	 Employees’	 Share	 Option	 Scheme	 to	 its	 eligible	
                      of	the	Committee.	                                                employees.

                      Besides	reviewing	the	year	end	financial	statements,	the	         The	 Committee	 will	 verify	 the	 criteria	 for	 allocation	 of	
                      Committee	 met	 four	 (4)	 times	 during	 the	 year	 for	 the	    options	to	eligible	employees,	as	proposed	by	the	Option	
020




                      following	purposes:                                               Committee,	during	the	relevant	financial	year.




                      TA ENTERPRISE BERHAD
                      (194867-M)	
                                                                                STATEMENT ON
                                                                            INTERNAL CONTROL


The	 Board	 of	 Directors	 (“the	 Board”)	 is	 committed	 to	        are	highlighted	with	recommendations	for	improvement	
maintaining	a	sound	system	of	internal	control	and	risk	             and	 mitigation.	 Follow-up	 procedures	 are	 in	 place	 to	
management	 practices	 in	 accordance	 with	 paragraph	              monitor	the	implementation	of	recommendations	made	
15.27	 (b)	 of	 the	 Bursa	 Malaysia	 Securities	 Berhad	            by	the	Internal	Audit	Department.
(Bursa	 Malaysia)	 Listing	 Requirements	 and	 as	 guided	
by	 the	 Bursa	 Malaysia’s	 guidelines	 on	 Statement	 on	           The	 respective	 Management	 of	 the	 Company	 and	 its	
Internal	Control:	Guidance	for	Directors	of	Public	Listed	           subsidiaries,	 with	 feedback	 from	 Risk	 Management	
Companies.	 Set	 out	 below	 is	 the	 Board’s	 Statement	 on	        Department,	 determine	 the	 applicability	 of	 risk	
Internal	Control	which	outlines	the	nature	and	the	scope	            monitoring	and	reporting	procedures	and	are	responsible	
of	the	Group	during	the	year.                                        for	 the	 identification	 and	 evaluation	 of	 significant	 risks	
                                                                     applicable	 to	 their	 areas	 of	 business,	 together	 with	
INTERNAL CONTROL                                                     the	 design	 and	 operation	 of	 suitable	 internal	 controls.	
                                                                     Whilst	risk	management	is	an	integral	part	of	the	Group’s	
TA	 Enterprise	 Berhad	 and	 its	 subsidiaries	 (“the	 Group”)	      business,	 the	 Risk	 Management	 Department	 had	 and	
system	of	internal	controls	is	designed	to	provide	a	sound	          will	continue	to	formalize	appropriate	risk	policy	and	risk	
system	 of	 internal	 control	 to	 safeguard	 shareholders’	         management	 framework	 for	 the	 Group	 and	 significant	
investment	and	the	Group’s	assets	as	well	as	to	improve	             risk	 areas	 are	 highlighted	 and	 brought	 to	 the	 Board’s	
the	Group’s	operations	and	risk	management	functions.	               attention	for	further	assessment.
It	covers	risk	management	and	financial,	operational	and	
compliance	controls.	                                                The	 duties	 of	 the	 Internal	 Audit	 Department	 and	
                                                                     Risk	 Management	 Department	 are	 performed	 with	
RESPONSIBILITY                                                       independence,	 proficiencies	 and	 due	 professional	 care.	
                                                                     This	provides	the	Audit	Committee	and	the	Board	with	
The	 Board	 affirms	 its	 overall	 responsibilities	 for	            reasonable	 assurance	 on	 the	 adequacy,	 integrity	 and	
maintaining	 a	 sound	 system	 of	 internal	 control	 and	           reliability	of	the	internal	control	systems.
risk	management	practices	in	all	aspects	of	the	Group’s	
business.	 In	 recognition	 of	 that	 responsibility,	 the	          The	 Board	 through	 its	 Audit	 Committee	 is	 ultimately	
Board	 sets	 policies,	 guidelines,	 control	 systems	 and	          responsible	 for	 the	 Group’s	 system	 of	 internal	 controls	
seeks	 regular	 assurance	 from	 its	 Management	 that	 the	         and	for	reviewing	its	effectiveness.	Therefore,	the	Audit	
system	 of	 internal	 control	 is	 operating	 effectively	 and	      Committee,	 on	 behalf	 of	 the	 Board,	 together	 with	
is	 in	 compliance	 with	 laws	 and	 regulations.	The	 role	 of	     Internal	Audit	Department	reviews	the	effectiveness	of	
management	is	to	implement	the	Board’s	policies	on	risk	             the	internal	financial	and	operating	control	environment	
and	control	and	to	ensure	proper	compliance.                         of	the	Group	primarily	through	reviews	of	reports	from	
                                                                     the	 internal	 audit	 function	 and	 any	 recommendation	
The	Board	is	ultimately	responsible	for	the	Group’s	system	          from	 the	 external	 auditors.	 Discussions	 are	 held	 with	
of	 internal	 control	 and	 for	 reviewing	 its	 effectiveness,	     Management	 of	 the	 Company	 and	 its	 subsidiaries	 on	
adequacy	and	integrity.	However,	due	to	the	limitations	             the	 actions	 taken	 in	 relation	 to	 internal	 control	 issues	
inherent	 in	 any	 system	 of	 internal	 control,	 it	 should	 be	   identified.	 During	 the	 current	 financial	 year,	 eighteen	
noted	that	such	a	system	is	designed	to	enable	the	Group	            (18)	 internal	 audit	 reports	 were	 received	 and	 reviewed	
to	meet	its	business	objectives	and	manage	rather	than	              by	the	Audit	Committee.
eliminate	the	risk	of	failure.		As	such,	the	system	can	only	
provide	a	reasonable	but	not	absolute	assurance	against	             In	addition	to	the	above,	the	Audit	Committee	reviews	
risk,	material	misstatement,	loss	or	failure.                        the	 quarterly	 results	 before	 approval	 by	 the	 Board	 for	
                                                                     public	 release,	 the	 audit	 findings	 and	 issues	 of	 the	
INTERNAL AUDIT & RISK                                                external	 auditors,	 the	 annual	 financial	 statements	 and	
                                                                                                                                           ANNUAL REPORT 2007


MANAGEMENT FUNCTIONS                                                 the	 Annual	 Report	 of	 the	 Group.	 It	 also	 reviews	 and	
                                                                     approves	the	annual	audit	plan	for	the	year	prior	to	their	
The	 Group’s	 Internal	 Audit	 Department	 and	 Risk	                execution.
Management	 Department	 report	 directly	 to	 the	 Audit	
Committee	 and	 are	 independent	 of	 the	 activities	 or	           The	Board	also	seeks	regular	assurance	on	the	continuity	
operations	of	the	subsidiaries,	departments	and	sections	            and	 effectiveness	 of	 its	 systems	 of	 internal	 controls	
under	review.	                                                       through	independent	appraisals	by	the	internal	auditors	
                                                                     and	 any	 recommendations	 or	 issues	 raised	 by	 the	
The	Internal	Audit	Department	performs	regular	reviews	              external	auditors.
on	 the	 internal	 control	 procedures,	 surveillance	 and	
audit	 of	 business	 processes	 to	 assess	 the	 effectiveness	      MONITORING MECHANISM AND
of	 internal	 controls	 and	 to	 monitor	 compliance	                MANAGEMENT STYLE
with	 procedures.	 It	 assesses	 the	 integrity	 of	 financial	
information	 provided	 and	 any	 major	 weaknesses	 in	              Scheduled	 periodic	 meetings	 of	 the	 Board,	 Board	
control	procedures.	Significant	risks	impacting	the	Group	           Committees	 and	 Management	 Committees	 represent	  	




                                                                                                      TA ENTERPRISE BERHAD
                                                                                                                             (194867-M)	
                      STATEMENT ON
                      INTERNAL CONTROL (cont’d)


                      the	 fundamental	 platform	 by	 which	 the	 Group’s	                	    risks	 and	 each	 maintains	 controls	 and	 procedures		
                      performance,	 business	 activities	 and	 conduct	 are	              	                                                           	
                                                                                               appropriate	 to	 its	 own	 business	 environment.	These	
                      monitored.	 The	 daily	 running	 and	 management	 of	               	    include	 procedures	 to	 identify	 and	 then	 mitigate		
                      the	 business	 is	 entrusted	 to	 the	 Executive	 Chairman,	        	    significant	risks;
                      Executive	 Directors	 and	 the	 Management.	 Under	 the	
                      purview	 of	 the	 Executive	 Chairman	 and	 Executive	              •	   The	 Management	 Committees	 and	 Management	             	
                      Directors,	 the	 Chief	 Operating	 Officers	 and	 Heads	 of	        	    of	the	Company	and	its	subsidiaries	are	responsible	for	  	
                      the	 respective	 operating	 subsidiaries	 of	 the	 Group	 are	      	    effective	 risk	 management.	 Each	 business	 area	 /	    	
                      empowered	with	the	responsibilities	of	managing	their	              	    division	 /	 department	 /	 section	 within	 the	 Group	  	
                      respective	operations	and	business.                                 	                                                              	
                                                                                               will	evaluate	its	key	risks	and	controls.	Periodic	reports	
                                                                                          	    confirming	the	effectiveness	of	all	significant	control	  	
                      The	 Executive	 Chairman	 actively	 communicates	                   	    policies	 and	 procedures	 and/or	 any	 changes	 to	 the	 	
                      the	 Board’s	 expectations	 to	 the	 Management	 at	 the	           	    business	 and	 external	 environment	 are	 prepared	 by	  	
                      Management	 meetings	 as	 well	 as	 through	 the	 various	          	    the	Senior	Executive	in	each	business	area/	division/	    	
                      Project	meetings,	Hotel	Owners	meetings,	Management	                	    department	/	section	within	the	Group	and	reviewed	       	
                      Committee	meetings	and	Board	meetings	of	the	various	               	    by	the	respective	Senior	Management	of	the	Company	       	
                      subsidiaries.	At	these	meetings,	operational	and	financial	         	    and	 its	 subsidiaries.	 The	 Internal	 Audit	 Department		
                      risks,	 management	 and	 corporate	 issues,	 business	              	    also	reviews	these	reports	independently	and	advises	     	
                      developments	 and	 performance,	 opportunities	 and	                	    the	Audit	Committee	and	the	Board	of	any	significant	     	
                      threats	including	competitors,	market	and	cross	border	             	    matters	arising	or	changes	to	the	business	that	could	    	
                      environmental	analysis	are	discussed	and	dealt	with.                	    have	an	impact	on	the	significant	risks	affecting	the	    	
                                                                                          	    Group;
                      The	 Board	 is	 responsible	 for	 setting	 the	 business	
                      direction	 and	 overseeing	 the	 overall	 conduct	 of	 the	         •	   The	 Board	 maintains	 an	 organizational	 structure	       	
                      Group’s	 operations	 and	 business	 through	 its	 various	          	                                                                	
                                                                                               with	 clearly	 defined	 delegation	 of	 responsibilities	 to	
                      Management	 Committees	 and	 management	 reporting	                 	    the	 Board	 Committees,	 Management	 Committees	            	
                      mechanism.	 Through	 these	 mechanisms	 the	 Board	 is	             	    and	 the	 Management	 of	 the	 operating	 units	            	
                      promptly	 informed	 of	 major	 or	 recent	 developments	            	    and	 subsidiaries.	 Clear	 and	 well-defined	 lines	 of	    	
                      pertaining	 to	 internal	 controls,	 regulatory	 compliance,	       	    accountabilities,	 appropriate	 organization	 structure	    	
                      risk	taking	and	financial	commitment.                               	    for	 planning,	 executing,	 controlling	 and	 monitoring	   	
                                                                                          	    business	 operations	 and	 authority	 limits	 for	 all	     	
                      KEY PROCESSES                                                       	    significant	 aspects	 of	 the	 businesses	 have	 been	      	
                                                                                          	    established	in	the	Company	and	its	subsidiaries.	These	     	
                      The	 Board	 has	 a	 broad	 overview	 on	 risk	 policies	 of	 the	   	    organization	structure	and	authority	limits	are	subject	    	
                      Group	and	is	committed	in	maintaining	a	sound	system	               	    to	regular	review	and	improvement;
                      of	internal	controls	in	the	Group.	
                                                                                          •	   Board	 Committees	 comprising	 Audit	 Committee,	      	
                      Members	 of	 the	 Management	 Committees	 and	 the	                 	    Nomination	 Committee,	 Remuneration	 Committee	       	
                      Board	would	assess	the	cost	and	return	on	investment,	              	    and	 various	 Management	 Committees	 comprising	      	
                      profit	margin,	impact	to	the	Group,	review	the	availability	        	    Stockbroking	 Management	 Committee,	 Property	        	
                      of	 cash	 flow	 before	 any	 commitment,	 investment	 or	           	    Management	 Committee,	 Futures	 Management	           	
                      significant	expenditure	is	made.	The	various	Departments	           	    Committee,	 Option	 Committee,	 Group	 Investment	     	
                      and	Management	Committees	are	involved	in	the	day-                  	    Committee,	 TA	 Investment	 Management	 Committee	     	
                      to-day	process	of:	                                                 	    (formerly	known	as	Unit	Trust	Management	Committee),	  	
                      •	 Identifying,	evaluating	and	managing	risks;	and                  	    Tender	Committee,	Corporate	Governance	Committee,	     	
 ANNUAL REPORT 2007




                      •	 Designing	 and	 implementing	 the	 procedures	 for	     	        	    Proprietary	Trading	Investment	Committee,	Tax	Planning		
                      	 planning,	      capital	    expenditure,	   information	 	        	    Committee,	 Information	 Technology	 Management	       	
                      	 and	 reporting	 system	 for	 monitoring	 the	 Group’s	   	        	    Committee	 and	 Risk	 Management	 Committee	 with	     	
                      	 performance.	                                                     	                                                           	
                                                                                               well	defined	terms	of	reference	and	functions	have	been	
                                                                                          	    established;
                      The	key	processes	and	elements	adopted	to	monitor	and	
                      review	 the	 effectiveness	 of	 the	 Group’s	 internal	 control	    •	   Regular	 Board	 meetings	 are	 held	 to	 discuss	 and	    	
                      system	are	as	follows	and	these	processes	are	embedded	             	    decide	on	policies	and	major	business	matters,	while	     	
                      within	the	Group’s	overall	business	operations	and	guided	          	    the	 Management	 Committees’	 discussions,	 briefings	    	
                      by	operational	manuals	on	policies	and	procedures:	                 	    and	meetings	are	held	from	time	to	time	to:
                                                                                          	                                                              	
                                                                                               i)		 Identify,	 discuss	 and	 resolve	 financial	 and	 key	
                      •	   Each	 of	 the	 key	 companies	 within	 the	 Group	 has	 its	
                                                                                      	   	    	 	 management	issues;	
                      	    own	management	and	internal	control	structures.	The	       	   	    ii)	 Manage	the	operational	controls;
022




                      	    Management	of	each	business	unit	bears	responsibility	     	   	    iii)	 Monitor	and	assess	the	business	performance;
                      	    for	the	identification	and	mitigation	of	major	business	   	   	    iv)	 Review	the	risks	and	controls	of	the	businesses;




                      TA ENTERPRISE BERHAD
                      (194867-M)	
	    v)	 Discuss	appropriate	tax	planning	measure	and	plans;          	 consultant	 is	 appointed	 if	 necessary	 to	 assist	 in	 the	
                                                                                                                                     	
	    vi)	 Review	and	evaluate	the	information	technology	   	         	 collection	/restructuring	of	such	loans;	
	    	 	 requirements	and	systems	support	of	the	various	   	
	    	 	 subsidiaries;                                                •	   The	 Group	 emphasizes	 continuous	 effort	 in	           	
	    vii)	Consider	 issues	 of	 corporate	 governance	 and	 	         	    maintaining	the	quality	of	its	property	development	      	
	    	 	 business	practices;	and                                      	    products	 and	 services.	 Its	 Property	 Division	 has	   	
	    viii)	Deliberate	on	the	investment	proposals.                    	    ensured	 that	 safety	 and	 health	 regulations,	         	
                                                                      	    environmental	 controls	 and	 all	 other	 legislations	 in	
                                                                                                                                     	
The	proceedings	of	some	of	these	meetings	are	minuted	                	    connection	with	the	industry	have	been	considered	        	
or	documented	in	reports,	memorandums	and	proposals	                  	    and	complied	with;
submitted	to	the	Board	of	the	Company,	the	respective	
Boards	of	the	subsidiaries	and/or	its	Management	from	                •	   As	 property	 development	 becomes	 an	 integral	 part	    	
time	to	time;                                                         	    of	the	Group’s	business,	the	Board	placed	emphasis	in	     	
                                                                      	    implementing	appropriate	controls	and	management	          	
•	   Policies	and	procedures	for	key	business	processes	are	   	      	    of	the	following	key	functions	of	its	Property	Division	:-
	    formalized	and	documented	for	each	of	the	significant	    	      	    (a)	 Sales	and	Marketing	of	its	development	products;
	                                                              	
     operating	units.		Relevant	regulations,	rules,	guidelines,	      	    (b)	 Project	 Management	 function	 covering	 product	     	
	    laws,	 policies	 and	 procedures	 governing	 the	 major	  	      	    	 	 planning	 and	 designing,	 project	 planning	 and	     	
	    operations	of	the	Group	are	translated	into	operational	  	      	    	 	 scheduling,	project	cost	control	and	environmental,	   	
	    manuals	 and	 guidelines.	 The	 manuals	 are	 reviewed	   	      	    	 	 health	and	safety;
	    and	approved	by	the	respective	Heads	of	Department,	      	      	    (c)	 Credit	 Control	 and	 Administration	 function	 on	   	
	    Compliance	Officer	and	Management	before	they	are	        	      	    	 	 billings	and	collections;
	    tabled	to	the	Board	for	adoption	and	implementation;             	    (d)	 Construction	 Management	 function	 covering	         	
                                                                      	    	 	 construction	 of	 buildings,	 quality	 assurance	 and	 	
•	 Corporate	 values	 which	 emphasize	 ethical	 behavior		           	    	 	 quality	 control,	 time	 and	 cost	 control,	 building		
	 and	 quality	 service	 are	 set	 out	 in	 the	 TA	 Group	
                                                          	           	    	 	 material	purchase	and	control,	and
	 Employees’	Code	of	Conduct;                                         	    (e)	 Management	 of	 its	 properties	 and	 buildings	      	
                                                                      	    	 	 covering	lease	and	rental,	building	management	        	
•	   There	 are	 strategic	 planning,	 annual	 budgeting	 and	    	   	    	 	 and	services;
	    target-setting	 processes	 for	 key	 areas	 of	 business,	   	
	    which	 are	 reviewed	 and	 approved	 by	 the	 Board.	 A	     	                                                             	
                                                                      •	 Key	functions	such	as	finance,	tax,	treasury,	insurance	
	    detailed	 budgeting	 process	 is	 in	 place	 where	          	   	 and	legal	matters	are	centralized	at	head	office;
	    subsidiaries	 prepare	 budgets	 for	 the	 forthcoming	       	
	    financial	 year,	 for	 approval	 by	 the	 Board.	 The	 Board		   •	   The	 professionalism	 and	 competence	 of	 staff	 are	   	
	    evaluates	and	assesses	the	long	and	short-term	risks	        	   	    maintained	through	a	rigorous	recruitment	process,	an	   	
	    and	opportunities	identified	by	each	of	the	subsidiaries	    	   	    annual	appraisal	system	and	training	and	development	    	
	    in	 the	 course	 of	 the	 Company’s	 annual	 planning	       	   	    programmes	to	conform	with	regulatory	requirements.	     	
	    process.	 Regular	 forecasts	 support	 the	 active	          	   	    Suitable	 employees	 with	 the	 required	 qualifications		
	    monitoring	of	the	Group’s	performance	against	plan	          	   	    and	 experience	 are	 appointed	 to	 assume	 their	      	
	                                                                 	
     to	 ensure	 that	 the	 objectives	 of	 the	 subsidiaries	 are	   	                                                             	
                                                                           responsibilities.	 In	 addition,	 on-going	 internal	 and	
	    in	 the	 context	 of	 the	 Group’s	 overall	 business	       	   	    external	training	and	development	programmes	are	        	
	    strategies	and	objectives;	                                      	    provided	to	develop	and	to	enhance	the	competencies,	    	
                                                                      	    skills	and	technical	knowledge	of	the	employees.
•	   Regular	 management	 reports	 and	 information	 are	  	
	    provided	to	the	Board	from	the	Management	of	the	     	          BOARD’S CONCLUSION
                                                                                                                                             ANNUAL REPORT 2007


	                                                          	
     various	 business	 divisions,	 on	 the	 key	 operating	
	                                                          	
     statistics,	assessment	of	business	performance	against	          The	 Board	 recognizes	 that	 the	 Group	 operates	 in	 a	
	    approved	 budgets,	 environmental	 and	 regulatory	   	          dynamic	 business	 environment	 in	 which	 the	 internal	
	    matters;                                                         control	system	must	be	responsive	in	order	to	support	
                                                                      its	 business	 objectives.	 As	 such,	 it	 is	 pleased	 to	 report	
•	   The	 Board	 has	 through	 the	 relevant	 Management	     	       that	 the	 current	 system	 of	 internal	 controls	 in	 place	
	    Committees	 adopted	 an	 effective	 and	 prudent	        	       throughout	 the	 Group	 is	 adequate	 and	 satisfactory	 in	
	    stance	with	regard	to	the	management	of	credit	risks.	   	       addressing	its	principal	risks	and	to	safeguard	the	Group’s	
	    Credit	approval	for	high	value	loans	are	deliberated	at	 	       interest	and	assets.	The	Board	believes	that	a	balanced	
	    Management	 Committees	 level	 to	 ensure	 that	 the	    	       achievement	of	its	business	objectives	and	operational	
	                                                             	
     loans	 are	 within	 the	 credit	 risk	 capacity	 and	 are	       efficiency	 has	 been	 attained	 and	 there	 is	 no	 control	
	    adequately	secured	by	collateral	of	good	quality.	For	   	       failure	 or	 weakness	 that	 would	 have	 material	 adverse	
	    recovery	 of	 loans,	 Debt	 Recovery	 Unit	 within	 the	 	       effect	on	the	performance	and	results	of	the	Group	for	
	    Credit	 Control	 Department	 as	 well	 as	 external	     	       the	year	under	review.	




                                                                                                        TA ENTERPRISE BERHAD
                                                                                                                               (194867-M)	
                      5-YEAR GROUP
                      FINANCIAL SUMMARY


                      YEAR ENDED 31 JANUARY                                     2007             2006             2005            2004             2003
                                                                            (RM ‘000)        (RM ‘000)        (RM ‘000)       (RM ‘000)        (RM ‘000)
                      	 	 	 	 	                                 	           	
                      OPERATING RESULTS	                        	                        	               	                	               	                	
                      Revenue	                                  	               	354,520		     	312,756		       	283,284		      	203,445		       	154,533	
                      Profit	before	tax	^	                      	               	143,115		      	89,504		       	120,376		      	120,164		        	16,565	
                      Profit	after	taxation	^	                  	               	133,735		      	80,708		       	108,478		      	103,943		        	12,588	
                      Profit	attributable	to	equity	holders
                      	 of	the	parent	^	                        	               	133,063		      	80,348		       	107,507		      	103,189		        	12,364	
                      	 	 	 	 	                                 	                        	
                      KEY BALANCE SHEET DATA	                   	                        	              	                	               	                	
                      Total	assets	                             	            2,932,810		     	2,381,692		     	2,433,687		    	2,337,467		     	1,996,879	
                      Cash	and	cash	equivalents	*	              	               174,347		      	440,986		       	321,768		      	384,931		       	407,060	
                      Total	liabilities	                        	            1,061,694		       	592,909		       	660,008		      	652,077		       	441,666	
                      Total	borrowings**	                       	               147,081		      	152,381		       	146,302		      	139,530		       	124,965	
                      Paid	up	share	capital	                    	           	1,328,475		     	1,328,475		     	1,328,475		    	1,328,475		     	1,328,475	
                      Shareholders’	equity	                     	           	1,863,072		     	1,781,321		     	1,766,486		    	1,679,203		     	1,550,284	
                      	 	 	 	 	                                 	                        	
                      SHARE INFORMATION	                        	                    	   	          	    	           	
                      Per	share	(sen)	                          	                    	   	          	    	
                      	 -			 Earnings	(Basic) 	                 	                 	10.02		        	6.05		          	8.09		          	7.77		         	0.93	
                      	 -			 Earnings	(Fully diluted)	          	                 	10.02		        	6.05		          	8.09		          	7.77		         	0.93	
                      	 -			 Net	tangible	assets	^^	            	                	142.20		      	136.20		        	134.07		       	127.56		        	118.21	
                      	 -			 Gross	dividends	                   	                  	7.00		        	3.00		          	6.00		          	7.50		         	1.00	
                      Share	price	as	at	31	January	(RM)	 	                          0.88		        	0.67		          	0.86		          	1.09		         	0.54	
                      Market	capitalisation	(RM’000)	           	            1,169,058		       	883,436		     	1,142,489		    	1,448,038		       	717,377	
                      	 	 	 	 	                                 	                    	
                      FINANCIAL RATIOS	                         	                    	   	          	   	            	
 ANNUAL REPORT 2007




                      Return	on	total	assets	(%)	               	                   4.5%	          3.4%	            4.4%	           4.4%	            0.6%
                      Return	on	shareholders’	equity	(%)	 	                         7.1%	          4.5%	            6.1%	           6.1%	            0.8%
                      Gearing	ratio (times)	                    	                   0.08		        	0.09		          	0.08		          	0.08		         	0.08	
                      Price	to	earnings	ratio (times)	          	                   8.79		       	11.00		         	10.63		        	14.03		         	58.02	
                      	 	 	 	 	                                 	                        	
                      	
                      *	 	    Comprises	short	term	funds	but	excluding	monies	held	in	trust,	Housing	Development	Accounts	and	pledged	for	                 	
                      	 	     bank	guarantees.	
                      **	 	   Secured	foreign	currency	denominated	term	loan	and	short	term	borrowings.	
024




                      ^	 	    Restated	for	FY’06,	‘05,	‘04	and	‘03	due	to	the	change	in	accounting	policy	as	described	in	Note	3.1(e).
                      ^^	     Net	tangible	assets	=	total	assets	-	total	liabilities	-	intangible	assets	-	deferred	tax	assets	+	deferred	tax	liabilities.




                      TA ENTERPRISE BERHAD
                      (194867-M)	
Revenue and Profit After Tax (attributable	to	equity	holders		 f	the	parent)
                                                             o
                  ‘07                                                133
                                                                                                                                                       355
                                                                                                                                                                              PAT
                  ‘06                                  80
                                                                                                                                        313                                   Revenue
Financial	Years




                  ‘05                                           108
                                                                                                                              283
                  ‘04                                          103
                                                                                                   203
                  ‘03          12
                                                                                  155

                         0             50                100                150             200               250                 300           350            400      RM	Million


Earnings per Share and Gross Dividend Per Share
                  ‘07                                                                                        7.00
                                                                                                                                                  10.02
                                                                                                                                                                              Gross	Dividend
                  ‘06                                       3.00
                                                                                                   6.05                                                                       EPS
Financial	Years




                  ‘05                                                                             6.00
                                                                                                                           8.09

                  ‘04                                                                                             7.50
                                                                                                                   7.77

                  ‘03               1.00
                                    0.93

                        0.00                    2.00                 4.00                   6.00                    8.00                  10.00               12.00     Sen


Shareholders’ Equity, Total Assets and Total Liabilities
                  ‘07                                                                                                                          2,933
                                                                     1,062
                                                                                                     1,863                                                                    Total	Assets
                  ‘06                                                                                                   2,382
                                                                                                                                                                              Total	Liabilities
                                                593
Financial	Years




                                                                                                   1,781
                                                                                                                                                                              Shareholders’	
                  ‘05                                                                                                     2,434                                               equity
                                                   660
                                                                                                  1,766
                  ‘04                                                                                                   2,337
                                                   652
                                                                                            1,679
                  ‘03                                                                                     1,997
                                           442
                                                                                          1,550

                         0             5,000                1,000                 1,500              2,000                2,500               3,000           3,500      RM	Million
                                                                                                                                                                                                  ANNUAL REPORT 2007



Profit After Tax (attributable	to	equity	holders		 f	the	parent)	and Year-End Share Price
                                                 o
                  150                                           1.09                                                                                         1.5
                                                                                                                                        133
                                                                                          108                                                                                  PAT
                                                                103
                  100                                                                                                                                        1.0
RM	Million




                                                                                                                  80                                                           Share	Price
                                       0.54
                                                                                          0.86                                          0.88
                  50                                                                                           0.67                                          0.5
                                           12

                    0                                                                                                                                        0.0
                                       ‘03                       ‘04                       ‘05                    ‘06                   ‘07                          Financial	Years




                                                                                                                                                          TA ENTERPRISE BERHAD
                                                                                                                                                                                 (194867-M)	
                      5-YEAR GROUP
                      FINANCIAL SUMMARY (cont’d)

                      2005 Revenue, Net Segment Results and Net Segment Assets
                                   450

                                   400
                                                                                                                                    Revenue
                                                                                                                                    Net	Segment
                                   350                                                                                              Results
                                                                                                                                    Net	Segment
                      RM	Million




                                   300
                                                                                                                                    Assets
                                   250

                                   200

                                   150

                                   100

                                    50

                                     0                                                                                         Business	Segments
                                           Stockbroking &      Investment   Credit &     Property     Property      Hotel
                                          Financial Services     holding    Lending    Investment   Development   Operations



                      2006 Revenue, Net Segment Results and Net Segment Assets
                                   390

                                   340
                                                                                                                                    Revenue

                                                                                                                                    Net	Segment
                                   290                                                                                              Results
                                                                                                                                    Net	Segment
                      RM	Million




                                   240
                                                                                                                                    Assets
                                   190

                                   140

                                    90

                                    40

                                                                                                                               Business	Segments
                                   (10)
                                           Stockbroking &      Investment   Credit &     Property     Property      Hotel
                                          Financial Services     holding    Lending    Investment   Development   Operations



                      2007 Revenue, Net Segment Results and Net Segment Assets
                                   630
                                   580                                                                                              Revenue
 ANNUAL REPORT 2007




                                   530
                                                                                                                                    Net	Segment
                                   480                                                                                              Results
                                   430                                                                                              Net	Segment
                      RM	Million




                                   380                                                                                              Assets
                                   330
                                   280
                                   230
                                   180
                                   130
                                    80
026




                                    30
                                                                                                                               Business	Segments
                                   (20)
                                           Stockbroking &      Investment   Credit &     Property     Property      Hotel
                                          Financial Services     holding    Lending    Investment   Development   Operations




                      TA ENTERPRISE BERHAD
                      (194867-M)	
                  21,063
                  (7%)
         274
         (0.1%)                                                     187,062
                                                 2005               (66%)
67,315                                         Revenue
(24%)
                                               (RM'000)




                     7,570
                     (3%)



                                     25,448
                                     (8%)
                             7,162
                             (2%)                                                 205,043
                                                               2006               (66%)
                    67,239                                   Revenue
                    (21%)
                                                             (RM'000)




     Malaysia                          7,864
                                       (3%)
     Hong Kong

     Australia
                                                         25,027
     South Africa                                        (7%)
                                                 6,986
     Canada
                                                 (2%)                                            237,788
                                                                                                                ANNUAL REPORT 2007


                                                                                                 (67%)
                                                                                2007
                                        73,471
                                        (21%)                                 Revenue
                                                                              (RM'000)




                                                           11,248
                                                           (3%)




                                                                                    TA ENTERPRISE BERHAD
                                                                                                  (194867-M)	
                      5-YEAR GROUP
                      FINANCIAL SUMMARY (cont’d)

                                                                  1,809
                                                                  (0.1%)
                                                11,796
                                                (0.5%)
                             285,699
                             (12%)
                                                                                                      1,667,661
                      44,619                                                    2005                  (70%)
                      (2%)                                                 Segment Assets
                                                                              (RM'000)



                         342,500
                         (14%)

                                                     40,954
                                                     (2%)
                                                                                         1,755
                                                                           4,912         (0.1%)
                                                                           (0.2%)
                                                              250,062
                                                              (11%)                                                       1,699,358
                                                                                                                          (73%)
                                                        39,066
                                                                                                       2006
                                                        (2%)                                      Segment Assets
                                                                                                     (RM'000)



                                                          291,655
                                    Malaysia              (12%)

                                    Hong Kong                                51,290
                                                                             (2%)
                                    Australia


                                    South Africa
                                                                                                        1,286
                                                                                                        (0.04%)
                                    Canada                                               47,074
                                                                                         (2%)
                                    British Virgin                             230,259
 ANNUAL REPORT 2007




                                    Islands
                                                                               (8%)                                                   2,240,998
                                                                                                                                      (78%)
                                    Others
                                                                        33,932
                                                                                                                       2007
                                                                        (1%)                                      Segment Assets
                                                                                                                     (RM'000)



                                                                           274,306
                                                                           (9%)
028




                                                                                          62,954
                                                                                          (2%)




                      TA ENTERPRISE BERHAD
                      (194867-M)	
                           STATEMENTS
	
                           FINANCIAL
                               Directors’ Report   30

                         Statement by Directors    34

                           Statutory Declaration   34

                          Report of the Auditors   35

                    Consolidated Balance Sheet     36

                Consolidated Income Statement      38

    Consolidated Statement of Changes in Equity    39

             Consolidated Cash Flow Statement      40

                                  Balance Sheet    43

                             Income Statement      44

                 Statement of Changes in Equity    45

                           Cash Flow Statement     46

               Notes to the Financial Statements   48
                      DIRECTORS’
                      REPORT


                      The directors have pleasure in presenting their report together with the audited financial statements of the Group and
                      the Company for the financial year ended 31 January 2007.

                      PRINCIPAL ACTIVITIES

                      The principal activities of the Company are investment holding and the provision of management services and funding
                      facilities to its subsidiaries.

                      The principal activities of the subsidiaries are described in Note 8 to the financial statements.

                      There have been no significant changes in the nature of these activities during the financial year.

                      RESULTS
                                                                                                               Group             Company
                                                                                                              RM’000               RM’000

                      Profit for the year                                                                     133,735              179,185

                      Attributable to:
                      Equity holders of the Company                                                           133,063              179,185
                      Minority interests                                                                          672                    -

                                                                                                              133,735              179,185



                      There were no material transfers to or from reserves or provisions during the financial year, other than as disclosed in the
                      statements of changes in equity.

                      In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year
                      were not substantially affected by any item, transaction or event of a material and unusual nature.



                      DIVIDENDS

                      The amount of dividends paid by the Company since 31 January 2006 were as follows:                           RM’000
 ANNUAL REPORT 2007




                      In respect of the financial year ended 31 January 2006 as reported in the
                          Directors’ Report of that year:

                      Ordinary final dividend of 3% less 28% taxation, paid on 15 August 2006                                       28,695



                      At the forthcoming Annual General Meeting, a final dividend in respect of the current financial year ended 31 January
                      2007 of 7% less 26% taxation (5.18 sen net per ordinary share), on the number of shares in issue on the entitlement
                      date to be announced, will be proposed for shareholders’ approval. The financial statements for the current financial
                      year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in the
030




                      shareholders’ equity as an appropriation of retained profits in the next financial year ending 31 January 2008.




                      TA ENTERPRISE BERHAD
                      (194867-M)
SIGNIFICANT	AND	SUBSEQUENT	EVENTS

The significant and subsequent events of the Group and the Company during and after the financial year are as disclosed
in Note 8 and Note 45 to the financial statements.


EMPLOYEES’	SHARE	OPTION	SCHEME

The Company had obtained the approval of the Securities Commission on 11 December 2003 and its shareholders
on 9 January 2004 for the issuance of a Employees’ Share Option Scheme (“ESOS”). The ESOS became effective on 30
January 2004 and shall be in force for a period of five years from the date of implementation of the ESOS. The option
price of the ESOS shall be the higher of the par value of TA Enterprise Berhad (“TAE”) shares or the weighted average
market price of TAE as shown in the Daily Official List of Bursa Malaysia for the five market days immediately preceding
the Offer Date with a discount of not more than ten percent (10%) therefrom. The aggregate maximum number of ESOS
shares to be offered and allotted to eligible employees shall be at the discretion of the ESOS Committee after taking into
consideration the position, performance, seniority and the length of service of the eligible employee. As at to-date, the
Company has not allocated any option to eligible employees.


WARRANTS

The 1999/2009 Warrants were constituted by a Deed Poll dated 20 April 1999 executed by the Company. The warrants
were listed on Bursa Malaysia Securities Berhad on 1 July 1999.


The main features of the 1999/2009 Warrants are as follows:


(a)   Each warrant will entitle the registered holders to subscribe for one new ordinary share of RM1.00 each at par
      in the Company at an exercise price of RM1.00 each, subject to adjustment from time to time in accordance with
      the conditions as stipulated in the Deed Poll.


(b)   The warrants may be exercised at any time on or before the expiry date of 24 June 2009, ten years from the date
      of issue of the rights to allotment of warrants of 25 June 1999. Warrants not exercised during the exercise period
      will thereafter lapse and cease to be valid.                                                                              ANNUAL REPORT 2007


(c)   The new ordinary shares of RM1.00 each to be issued pursuant to the exercise of the warrants will rank pari passu
      in all respects with the existing issued ordinary shares of the Company except that they shall not be entitled to any
      dividends, rights, allotments and/or other distributions, the record date of which is on or before the date of
      allotment and issue of the new ordinary shares of the Company pursuant to the exercise of the warrants.


For the purpose hereof, record date means the date as at the close of business on which the shareholders must
be registered as members of the Company in order to participate in any dividends, rights, allotments or any other
distributions.


As at the balance sheet date, the entire 572,579,462 warrants remain unexercised.




                                                                                              TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                      DIRECTORS’
                      REPORT (cont’d)


                      DIRECTORS

                      The names of directors of the Company in office since the date of the last report and at the date of this report are:

                      Datin Tan Kuay Fong
                      Zainab binti Ahmad
                      Dato’ Mohamed bin Abid
                      Peter U Chin Wei
                      Jory Leong Kam Weng
                      Christopher Koh Swee Kiat

                      DIRECTORS’	BENEFITS

                      Neither at the end of the financial year, nor at any time during the year, did there subsist any arrangement to which the
                      Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures
                      of the Company or any other body corporate, other than those arising from warrants issued by the Company.

                      Since the end of the previous financial year, no director has 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 or the
                      fixed salary of a full time employee of the Company or related corporations as shown in Notes 35 and 40 to the financial
                      statements) by reason of a contract made by the Company or related corporations with the director or with a firm of
                      which he or she is a member, or with a company in which he or she has a substantial financial interest.

                      DIRECTORS’	INTERESTS

                      According to the register of directors’ shareholdings, the direct and indirect interests of directors in office at the end of
                      the financial year in shares and warrants in the Company during the financial year were as follows:

                                                                                           Number of Ordinary Shares of RM1.00 Each
                                                                            1 February
                                                                          2006/date of                                                 31 January
                                                                          appointment               Bought                Sold               2007
                      The Company
                      Datin Tan Kuay Fong*                                     3,061,000                   -                  -         3,061,000
                      Dato’ Mohamed bin Abid                                     480,000                   -                  -           480,000
                      Christopher Koh Swee Kiat                                   16,000                   -                  -            16,000

                                                                                                Number of 1999/2009 Warrants
 ANNUAL REPORT 2007




                                                                             1 February                   Bought/                      31 January
                                                                                  2006                      (Sold)                           2007
                      The Company
                      Datin Tan Kuay Fong*                                      800,000                            -                      800,000
                      Zainab binti Ahmad                                     25,025,400                 (24,300,900)                      724,500
                      Dato’ Mohamed bin Abid                                    200,000                            -                      200,000
                      Jory Leong Kam Weng - indirect interest                    10,000                            -                       10,000

                      * Datin Tan Kuay Fong is the spouse of Datuk Tiah Thee Kian, a substantial shareholder of the Company.
032




                      Other than the above, the other director in office at the end of the financial year did not have any interest in shares in
                      the Company or its related corporations during the financial year.




                      TA ENTERPRISE BERHAD
                      (194867-M)
OTHER	STATUTORY	INFORMATION
(a)    Before the balance sheets and income 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 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.

(b)    At the date of this report, the directors are not aware of any circumstances which would render:
       (i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial
           statements of the Group and of the Company inadequate to any substantial extent; and
       (ii) the values attributed to current assets in the financial statements of the Group and of the Company
            misleading.

(c)    At the date of this report, the directors are not aware of any circumstances 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.

(d)    At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report
       or financial statements of the Group and of the Company which would render any amount stated in the financial
       statements misleading.

(e)    As at the date of this report, there does not exist:
       (i) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year
           which secures the liabilities of any other person; or
       (ii) any contingent liability in respect of the Group or of the Company which has arisen since the end of the
            financial year.

(f )   In the opinion of the directors:
       (i) no contingent liability or other liability has become enforceable or is likely to become enforceable within the
           period of twelve months after the end of the financial year which will or may affect the ability of the Group
           and of the Company to meet their obligations as and when they fall due; and
       (ii no item, transaction or event of a material and unusual nature has arisen in the interval between the end of
           the financial year and the date of this report which is likely to affect substantially the results of the operations
           of the Group and of the Company for the financial year in which this report is made.
                                                                                                                                   ANNUAL REPORT 2007


AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the directors.




ZAINAB	BINTI	AHMAD	                                                 	                  	 ATO’	MOHAMED	BIN	ABID
                                                                                       D
Kuala Lumpur, Malaysia
17 May 2007




                                                                                                  TA ENTERPRISE BERHAD
                                                                                                                      (194867-M)
                      STATEMENT BY DIRECTORS
                      PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT,1965




                      We, ZAINAB	BINTI	AHMAD and DATO’	MOHAMED	BIN	ABID, being two of the directors of TA ENTERPRISE BERHAD, do
                      hereby state that in the opinion of the directors, the accompanying financial statements set out on pages 36 to 135 are
                      drawn up in accordance with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in
                      Malaysia and so as to give a true and fair view of the financial position of the Group and of the Company as at 31 January
                      2007 and of the results and the cash flows of the Group and of the Company for the year then ended.


                      Signed on behalf of the Board in accordance with a resolution of the directors.




                      ZAINAB	BINTI	AHMAD	                                              	                  D
                                                                                                          	 ATO’	MOHAMED	BIN	ABID


                      Kuala Lumpur, Malaysia
                      17 May 2007




                      STATUTORY DECLARATION
                      PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965


                      I, THERESA	HOOI	YOKE	MUI, being the officer primarily responsible for the financial management of TA ENTERPRISE
                      BERHAD, do solemnly and sincerely declare that the accompanying financial statements set out on pages 36 to 135 are
                      in my opinion 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.
 ANNUAL REPORT 2007




                      Subscribed and solemnly declared by the
                      abovenamed Theresa Hooi Yoke Mui at
                      Kuala Lumpur in Wilayah Persekutuan
                      on 17 May 2007                                                                      T
                                                                                                          	 HERESA	HOOI	YOKE	MUI
034




                      Before me,




                      TA ENTERPRISE BERHAD
                      (194867-M)
 REPORT OF THE AUDITORS TO THE MEMBERS OF
                     TA ENTERPRISE BERHAD
                                                                                (Incorporated in Malaysia)



We have audited the accompanying financial statements set out on pages 36 to 135. These financial statements are the
responsibility of the Company’s directors.

It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our
opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do
not assume responsibility to any other person for the content of this report.

We conducted our audit in accordance with the applicable Approved Standards on Auditing in Malaysia. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We believe
that our audit provides a reasonable basis for our opinion.

In	our	opinion:

(a)   the financial statements have been properly drawn up in accordance with the provisions of the Companies Act,
      1965 and the applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of:

      (i) the financial position of the Group and of the Company as at 31 January 2007 and of the results and the cash
          flows of the Group and of the Company for the year then ended; and

      (ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and

(b)   the accounting and other records and the registers required by the Act to be kept by the Company and by its
      subsidiaries for which we have acted as auditors have been properly kept in accordance with the provisions
      of the Act.

We have considered the financial statements and the auditors’ reports of the subsidiaries of which we have not acted as
auditors, as indicated in Note 8 to the financial statements, being financial statements that have been included in the
consolidated financial statements.

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

The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification material to the
                                                                                                                                ANNUAL REPORT 2007



consolidated financial statements except for the comment in the auditors’ report of a subsidiary as disclosed in Note 8 to
the financial statements, and in respect of subsidiaries incorporated in Malaysia, did not include any comment required
to be made under Section 174(3) of the Act.



Ernst	&	Young	                                                  	                                 Gloria	Goh	Ewe	Gim
AF : 0039                                                                                         No. 1685/04/09(J)
Chartered Accountants                                                                             Partner



Kuala Lumpur, Malaysia
17 May 2007




                                                                                              TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                          CONSOLIDATED BALANCE SHEET
                          AS AT 31 JANUARY 2007




                                                                             Note	      2007		        2006	
                      	      	     	   	                                         	    RM’000	       RM’000	
                      	      	     	   	                                         	          	    (restated)

                      ASSETS

                      Non-current	assets
                      Property, plant and equipment                              4    487,993      547,077
                      Investment property                                        5    192,931      218,525
                      Land held for property development                      6(a)    361,204       98,980
                      Intangible assets                                          7        491           254
                      Associated companies                                       9     15,231       15,229
                      Other investments                                        10      34,182       64,973
                      Deferred tax assets                                      24       1,097         1,243
                      Reserves on consolidation                                             -       (4,378)

                                                                                     1,093,129     941,903
                      Current	assets
                      Property development costs                              6(b)     95,726       86,630
                      Properties held for resale                               11       2,128        2,865
                      Land held for resale                                     12       9,470        9,470
                      Inventories                                              13         576          437
                      Financial receivables                                    14     308,752      266,542
                      Trade receivables                                        15     835,151      410,955
                      Other receivables                                        16     108,148       68,394
                      Tax recoverable                                                  25,673       27,122
                      Due from associated companies                            18          10            9
                      Short term investments                                   19       6,720        2,721
                      Short term funds                                         20     415,535      564,644

                                                                                     1,807,889   1,439,789

                      Non-current asset classified as held for sale            21      31,792             -
                                                                                     1,839,681   1,439,789

                      TOTAL	ASSETS                                                   2,932,810   2,381,692
 ANNUAL REPORT 2007




                      EQUITY	AND	LIABILITIES
                      Equity	attributable	to	equity	holders	of	the	Company

                      Share capital                                            22    1,328,475   1,328,475
                      Reserves                                                         534,597     452,846
                                                                                     1,863,072   1,781,321
                      Minority	interests                                                 8,044       7,462
                      Total	equity                                                   1,871,116   1,788,783
036




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                           Note	      2007		          2006	
	     	   	   	                                                                	    RM’000	         RM’000	
	     	   	   	                                                                	          	      (restated)

Non-current	liabilities
Deferred tax liabilities                                                     24      19,564         22,122
Term loan                                                                    25     125,214        145,182

                                                                                    144,778        167,304



Current	liabilities
Provision for liabilities                                                    26         970          4,040
Short term borrowings                                                        25      21,867          7,199
Trade payables                                                               27     695,135        264,794
Other payables                                                               28     112,738         72,796
Due to remisiers                                                             29      76,489         72,814
Due to directors                                                             30          27             70
Due to associated companies                                                  18       1,028          1,668
Income tax payable                                                                    8,662          2,224

                                                                                    916,916        425,605

Total	liabilities                                                                  1,061,694       592,909

TOTAL	EQUITY	AND	LIABILITIES                                                       2,932,810     2,381,692




                                                                                                                ANNUAL REPORT 2007




The accompanying notes form an integral part of the financial statements




                                                                                     TA ENTERPRISE BERHAD
                                                                                                   (194867-M)
                      CONSOLIDATED INCOME STATEMENT
                      FOR THE YEAR ENDED 31 JANUARY 2007




                                                                                                 Note	     2007		        2006	
                      	      	     	   	                                                             	   RM’000	       RM’000	
                      	      	     	   	                                                             	         	    (restated)

                      Revenue                                                                      32    354,520      312,756
                      Other income                                                                 33      44,227       57,209
                      Purchase of inventories                                                             (4,252)      (3,719)
                      Cost of properties sold                                                     6(b)   (49,439)     (67,458)
                      Hotel operation costs (exclude personnel costs)                                    (22,923)     (21,636)
                      Personnel costs                                                              34    (69,416)     (56,464)
                      Depreciation                                                                       (27,655)     (31,693)
                      Remisiers’, agents’ and commissioned futures broker
                            representatives’ commission                                                  (31,007)     (21,820)
                      Foreign exchange (loss)/gains, net                                           36     (9,920)        7,489
                      Other expenses                                                               37    (31,844)     (73,566)

                      Profit from operations                                                             152,291      101,098
                      Finance costs                                                                38     (9,178)     (11,491)
                      Share of profits/(losses) of associated companies, net of tax                             2        (103)

                      Profit before tax                                                                  143,115       89,504
                      Income tax expense                                                           39     (9,380)      (8,796)

                      Profit for the year                                                                133,735       80,708



                      Attributable to:
                      Equity holders of the parent                                                       133,063       80,348
                      Minority interests                                                                     672          360

                                                                                                         133,735       80,708

                      Earnings	per	share	(sen)	attributable	to	equity	holders	of	the	parent
                      Basic and diluted, for profit for the year                                   41      10.02         6.05
 ANNUAL REPORT 2007
038




                      The accompanying notes form an integral part of the financial statements




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                CONSOLIDATED STATEMENT OF
                                                                        CHANGES IN EQUITY
                                                                                       FOR THE YEAR ENDED 31 JANUARY 2007



	 	     	   	             	 <----------------------------------	Attributable	to	Equity	Holders	of	the	Parent--------------------------------------->	 	   Minority		        Total	
	 	     	   	             																													<----------------------------------	 	Non-distributable	------------------>				Distributable		 	   Interests	       Equity

	   	   	   	                        	          	                	          	                   	   Exchange
	   	   	   	                        	          	                	          	                   	 Difference
	   	   	   	                  Share		     Share		        Capital		 *General		       Translation		 Recognised	            Retained		                	           	
	   	   	   	                 capital		 premium		         reserve		 reserve		            reserve		   in	Equity	             profits		          Total		          	
	   	   	   	                RM’000		 RM’000		            RM’000		 RM’000		             RM’000		      RM’000		             RM’000		          RM’000		     RM’000		        RM’000

At	1	February	2005

As previously stated      1,328,475         63,273        10,324            290        106,689                    -      257,435         1,766,486         7,193       1,773,679
Effects of adopting
  FRS 121 (Note 3.1(e))              -              -             -             -                -        45,232         (45,232)                    -           -              -

At	1	February	2005
  (restated)              1,328,475         63,273        10,324            290        106,689            45,232         212,203         1,766,486         7,193       1,773,679
Currency translation
  differences,
  representing net
  (loss)/gain not
  recognised in
  income statement                   -              -             -             -      (26,026)             8,338               -          (17,688)          (91)       (17,779)
Profit for the year                  -              -             -             -             -                 -          80,348            80,348          360          80,708
Dividend                             -              -             -             -             -                 -        (47,825)          (47,825)             -       (47,825)

At	31	January	2006
 	(restated)              1,328,475         63,273        10,324            290          80,663           53,570         244,726         1,781,321         7,462       1,788,783


At	1	February	2006

As previously stated    1,328,475           63,273        10,324            290          80,663                   -      298,296         1,781,321         7,462       1,788,783
Effects of adopting
  FRS 121 (Note 3.1(e))         -                   -             -             -                -        53,570         (53,570)                    -           -              -

At	1	February	2006
  (restated)              1,328,475         63,273        10,324            290          80,663           53,570         244,726         1,781,321         7,462       1,788,783
Effects of adopting
  FRS 3 (Note 3.1(b))                -              -             -             -                -                -          4,378             4,378             -        4,378

                          1,328,475         63,273        10,324            290          80,663           53,570         249,104         1,785,699         7,462       1,793,161

Currency translation
  differences,
                                                                                                                                                                                     ANNUAL REPORT 2007


  representing net
  loss not recognised
  in the income
  statement                          -              -             -             -      (15,324)         (11,671)                -          (26,995)          (90)       (27,085)
Profit for the year                  -              -             -             -             -                -         133,063           133,063           672        133,735
Dividend                             -              -             -             -             -                -         (28,695)          (28,695)             -       (28,695)

At	31	January	2007        1,328,475         63,273        10,324            290          65,339           41,899         353,472         1,863,072         8,044       1,871,116

* Maintained by a local stockbroking subsidiary for compliance with the Rules Relating to Participating Organisations of Bursa Securities.


The accompanying notes form an integral part of the financial statements




                                                                                                                                             TA ENTERPRISE BERHAD
                                                                                                                                                                        (194867-M)
                      CONSOLIDATED CASH FLOW STATEMENT
                      FOR THE YEAR ENDED 31 JANUARY 2007




                                                    	   	   	   	   	   	   	   	 	 	 	   	   	   	 2007		        2006	
                      	   	   	    	                	   	   	   	   	   	   	   	 	 	 	   	   	   	RM’000	      RM’000	
                      	   	   	    	                	   	   	   	   	   	   	   	 	 	 	   	   	   	      	   (restated)

                      CASH	FLOWS	FROM	OPERATING	ACTIVITIES

                      Profit before tax                                                           143,115       89,504
                      Adjustments for:
                          Depreciation                                                             27,655       31,693
                          Amortisation of:
                          - trading right in Stock Exchange of Hong Kong                                 -            33
                          - premium on unquoted bonds and debt securities                               20            18
                          - leasehold development properties                                             7             7
                          - deferred financing costs                                                    29            17
                          - deferred leasing costs                                                  2,685         3,122
                          - intangible asset                                                          143             77
                          Accretion of discount on unquoted bonds                                     (58)          (92)
                          Provision for doubtful debts                                                684        32,647
                          Write-back of provision for doubtful debts                              (14,800)     (12,414)
                          Bad debts written off                                                         57          472
                          Deposit written off                                                            -             8
                          Property, plant and equipment written off                                      -          224
                          Provision for impairment losses:
                          - club membership                                                              -          11
                          - property, plant and equipment                                                -         499
                          - other investments                                                            -      10,878
                          - short term investments                                                       -          18
                          Write-back of provision for impairment loss on:
                          - property, plant and equipment                                          (5,345)      (5,254)
                          - other investment                                                       (1,752)           (9)
                          - short term investment                                                      (9)         (18)
                          Write down in value of properties held for resale                              -           27
                          Net (gain)/loss on disposal of property, plant and equipment               (990)          415
                          Net gains on disposals of investments                                   (16,832)     (17,433)
                          Gains arising from allotment and cancellation of bonus shares
 ANNUAL REPORT 2007




                              and capital distribution by Bursa Malaysia Berhad                          -      (1,622)
                          Loss on disposal of club membership                                           91          110
                          Purchaser’s deposit forfeited                                                (9)           (7)
                          (Write back)/provision for liabilities, net                              (1,733)          137

                          Balance carried forward                                                 132,958      133,068
040




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                                   2007		    	        2006	
	   	   	   	                	   	   	    	   	   	   	             	   	        RM’000	     	      RM’000	
	   	   	   	                	   	   	    	   	   	   	             	   	              	     	   (restated)

CASH	FLOWS	FROM	OPERATING	ACTIVITIES	(cont’d)

    Balance brought forward                                                      132,958           133,068
    Unrealised loss on foreign exchange translation, net                            8,248             2,886
     Interest expense                                                               8,987            11,370
    Interest income                                                              (24,547)          (30,565)
    Gross dividends from quoted and unquoted investments                          (1,383)           (1,415)
    Share of (profits)/losses of associated companies, net of tax                      (2)              103

Operating profit before working capital changes                                   124,261          115,447
(Increase)/decrease in property development costs                                  (6,912)           14,127
(Increase)/decrease in inventories                                                   (139)                3
(Increase)/decrease in receivables                                              (597,539)            73,353
(Increase)/decrease in short term investments                                      (2,867)            2,128
Increase in balance in Housing Development Accounts                                (2,578)         (10,956)
Increase/(decrease) in payables                                                   469,595          (34,759)
Decrease in net amount due to associated companies                                   (641)            (329)

Cash (used in)/generated from operations                                         (16,820)          159,014
Interest received                                                                   6,124           21,247
Taxes paid                                                                        (3,905)           (8,778)
Taxes refunded                                                                        230               106

Net cash (used in)/generated from operating activities                           (14,371)          171,589



CASH	FLOWS	FROM	INVESTING	ACTIVITIES

Purchase of property, plant and equipment (Note 4)                                (9,195)          (11,586)
Purchase of intangible assets                                                       (380)                 -
Payment of stamp duties and other costs incidental to acquisition of property     (8,728)           (5,966)
                                                                                                                ANNUAL REPORT 2007


Proceeds from disposal of property, plant and equipment                             1,043            33,329
Purchase of land held for development                                           (255,566)           (8,054)
Deposits paid for acquisition of properties                                       (1,064)          (12,303)
Property development costs on land held for development                             (957)             (124)
Purchase of other investments                                                    (24,174)          (55,483)
Proceeds from disposals of other investments                                       72,214            57,170
Proceeds from bonus issue and capital distribution by Bursa Malaysia Berhad             -             1,622
Proceeds from capital reduction of Bursa Malaysia Berhad                                -            13,636
Proceeds from disposals of club membership                                             35                34

Balance carried forward                                                         (226,772)           12,275




                                                                                  TA ENTERPRISE BERHAD
                                                                                                   (194867-M)
                      CONSOLIDATED CASH FLOW STATEMENT
                      FOR THE YEAR ENDED 31 JANUARY 2007 (cont’d)




                                                                                                   2007		    	        2006	
                      	   	   	    	               	   	      	   	   	   	   	       	      	   RM’000	     	      RM’000	
                      	   	   	    	               	   	      	   	   	   	   	       	      	         	     	   (restated)

                      CASH	FLOWS	FROM	INVESTING	ACTIVITIES (cont’d)

                      Balance brought forward                                                    (226,772)          12,275
                      Prepayment to Bursa Malaysia Derivatives Clearing Berhad
                          for clearing of Ethylene contracts                                            -           (1,875)
                      Interest received                                                            14,918             9,300
                      Dividends received                                                            1,152             1,084

                      Net cash (used in)/generated from investing activities                     (210,702)          20,784



                      CASH	FLOWS	FROM	FINANCING	ACTIVITIES

                      Repayment of short term loan                                                (19,968)          (3,392)
                      Increase in pledged deposits for financing facilities                        (8,245)            (900)
                      Net drawdown of loan from a substantial shareholder (Note 28)                  6,139            1,536
                      Drawdown of revolving credit facility                                         15,000                -
                      Interest paid                                                                (5,482)         (22,481)
                      Dividends paid                                                              (28,695)         (47,825)

                      Net cash used in financing activities                                       (41,251)         (73,062)

                      NET	(DECREASE)/INCREASE	IN	CASH	AND	CASH	EQUIVALENTS                       (266,324)         119,311
                      EFFECTS	OF	EXCHANGE	RATE	CHANGES                                               (315)             (93)
                      CASH	AND	CASH	EQUIVALENTS	AT	BEGINNING	OF	YEAR                               440,986         321,768

                      CASH	AND	CASH	EQUIVALENTS	AT	END	OF	YEAR                                    174,347          440,986

                      Cash and cash equivalents (Note 20) are as follows:
                      Cash and bank balances                                                       35,742           44,089
                      Fixed deposits and placements with licensed financial institutions          138,605          396,897
 ANNUAL REPORT 2007




                                                                                                  174,347          440,986
042




                      The accompanying notes form an integral part of the financial statements




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                                   BALANCE SHEET
                                                                                   AS AT 31 JANUARY 2007




                                                                           Note           2007		   	        2006	
	   	   	   	                	   	   	   	   	   	   	         	               	        RM’000	    	      RM’000
	   	   	   	                	   	   	   	   	   	   	         	               	              	    	   (restated)

ASSETS
Non-current	assets
Property, plant and equipment                                                 4           17,781          18,126
Subsidiaries                                                                  8        1,223,636       1,037,181
Associated companies                                                          9              213             190
Other investments                                                            10          126,998         145,475
Due from subsidiary                                                          17           13,000           7,000

                                                                                       1,381,628       1,207,972

Current	assets
Other receivables                                                            16             428              404
Tax recoverable                                                                          22,155           19,109
Due from subsidiaries                                                        17         226,166           76,868
Short term funds                                                             20          10,834          164,630

                                                                                        259,583          261,011

TOTAL	ASSETS                                                                           1,641,211       1,468,983

EQUITY	AND	LIABILITIES
Equity	attributable	to	equity	holders	of	the	Company
Share capital                                                                22        1,328,475       1,328,475
Reserves                                                                                 241,212          90,722

Total	equity                                                                           1,569,687       1,419,197

Non-current	liabilities
Deferred tax liabilities                                                     24              27                26

Current	liabilities
Other payables                                                               28          51,021           43,528
Borrowings                                                                   25          15,000                -
Due to directors                                                             30              27               70
                                                                                                                      ANNUAL REPORT 2007


Due to subsidiaries                                                          31           5,449            6,162

                                                                                         71,497           49,760

Total	liabilities                                                                        71,524           49,786

TOTAL	EQUITY	AND	LIABILITIES                                                           1,641,211       1,468,983




The accompanying notes form an integral part of the financial statements




                                                                                         TA ENTERPRISE BERHAD
                                                                                                         (194867-M)
                      INCOME STATEMENT
                      FOR THE YEAR ENDED 31 JANUARY 2007




                                                                                                 Note      2007		   	        2006	
                      	       	   	   	            	   	   	   	   	   	   	         	               	   RM’000	    	      RM’000
                      	       	   	   	            	   	   	   	   	   	   	          	      	                 	    	   (restated)
                          	

                      Revenue                                                                      32     53,592          133,968
                      Other income                                                                 33      3,552            4,582
                      Personnel costs                                                              34     (9,314)          (7,658)
                      Depreciation                                                                         (790)            (875)
                      Foreign exchange gains                                                       36         26            5,956
                      Other expenses                                                               37    136,124          (41,127)


                      Profit	from	operations                                                             183,190           94,846
                      Finance costs                                                                38     (2,001)          (1,023)


                      Profit	before	tax                                                                  181,189           93,823
                      Income tax expense                                                           39     (2,004)         (11,006)


                      Profit	for	the	year                                                                179,185           82,817
 ANNUAL REPORT 2007
044




                      The accompanying notes form an integral part of the financial statements




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                 STATEMENT OF CHANGES IN EQUITY
                                                          FOR THE YEAR ENDED 31 JANUARY 2007




                                                          <---	Non-distributable	--->	   Distributable	             	
	   	   	   	                         	        Share		          Share		 Revaluation	         Retained		             	
	   	   	   	                         	       capital		     premium		        surplus		          profits		      Total	
	   	   	   	                         	      RM’000		         RM’000		       RM’000		          RM’000		      RM’000	



At 31 January 2005 as previously stated     1,328,475           63,273        55,246             46,101     1,493,095
Effect of adopting revised FRS 127                   -               -       (55,246)          (53,644)     (108,890)


At 31 January 2005 as restated              1,328,475           63,273              -           (7,543)     1,384,205
Net profit for the year as restated                  -               -              -            82,817       82,817
Dividend                                             -               -              -          (47,825)      (47,825)


At 31 January 2006 as restated              1,328,475           63,273              -            27,449     1,419,197



At 31 January 2006 as previously stated     1,328,475           63,273        51,440             84,899     1,528,087
Effect of adopting revised FRS 127                   -               -       (51,440)          (57,450)     (108,890)


At 31 January 2006 as restated              1,328,475           63,273              -            27,449     1,419,197
Net profit for the year                              -               -              -          179,185       179,185
Dividend (Note 42)                                   -               -              -          (28,695)      (28,695)


At 31 January 2007                          1,328,475           63,273              -          177,939      1,569,687




                                                                                                                          ANNUAL REPORT 2007




The accompanying notes form an integral part of the financial statements




                                                                                          TA ENTERPRISE BERHAD
                                                                                                             (194867-M)
                      CASH FLOW STATEMENT
                      FOR THE YEAR ENDED 31 JANUARY 2007




                                                                                                            2007		    	     2006	
                      	   	   	    	               	    	     	   	   	   	   	         	   	             RM’000	     	   RM’000	

                      CASH	FLOWS	FROM	OPERATING	ACTIVITIES

                      Profit before taxation                                                               181,189          93,823
                      Adjustments for:
                          Depreciation                                                                         790             875
                          Amortisation of premium on unquoted bonds and debt securities                         20              18
                          Accretion of discounts on unquoted bonds                                             (59)            (30)
                          Net write-back of provision for doubtful debts due from subsidiaries            (135,763)            (75)
                          Property, plant and equipment written off                                               -            221
                          (Write-back)/provision for impairment losses on:
                          - investment in subsidiaries                                                      (2,348)         37,507
                          - an associated company                                                              (23)              1
                          - other investments                                                                   32              55
                          Gain on disposal of other investments                                               (246)           (372)
                          Loss on redemption of trust units outside Malaysia                                      -          1,466
                          Loss on disposal of club membership                                                   16              43
                          Unrealised loss/(gain) on foreign exchange translation, net                             -             (7)
                          Interest expense                                                                   1,989           1,019
                          Interest income                                                                   (2,393)         (3,711)
                          Gross dividend income                                                            (48,792)       (130,756)


                      Operating (loss)/profit before working capital changes                                (5,588)             77
                      Increase in receivables                                                                  (40)           (271)
                      Increase/(decrease) in payables                                                        1,311             (24)


                      Net cash used in operating activities                                                 (4,317)           (218)


                      CASH	FLOWS	FROM	INVESTING	ACTIVITIES

                      Purchase of property, plant and equipment                                               (368)           (196)
 ANNUAL REPORT 2007




                      Subscription of ordinary shares in a subsidiary (Note 8)                                  (5)            (19)
                      Subscription of preference shares in subsidiaries (Note 8)                          (189,545)         (3,000)
                      Proceeds from redemption of redeemable preference shares in a subsidiary (Note 8)      5,442          18,452
                      Proceeds from capital reduction of a subsidiary                                             -        740,000
                      Purchase of quoted trust units in Malaysia                                           (10,082)        (10,000)
                      Proceeds from disposal of quoted trust units in Malaysia                              22,352                -
                      Proceeds from disposal of unquoted trust units outside Malaysia                             -         10,322


                      Balance carried forward                                                             (172,206)        755,559
046




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                             2007		    	     2006	
	   	   	   	                	   	      	   	   	   	   	       	      	   RM’000	     	   RM’000	


CASH	FLOWS	FROM	INVESTING	ACTIVITIES

Balance brought forward                                                    (172,206)        755,559
Purchase of unquoted bonds and debt securities                                     -        (26,795)
Proceeds from disposal of unquoted bonds                                      6,459           5,523
Interest received                                                             2,393           3,711
Dividends received                                                           43,742         118,972


Net cash (used in)/generated from investing activities                     (119,612)        856,970


CASH	FLOWS	FROM	FINANCING	ACTIVITIES

Net drawdown of loan from a substantial shareholder (Note 28)                 6,139           1,544
Net repayments to subsidiaries                                              (20,321)       (716,198)
Drawdown of revolving credit facility (Note 25)                              15,000                 -
Interest paid                                                                (1,990)         (1,019)
Dividends paid                                                              (28,695)        (47,825)


Net cash used in financing activities                                       (29,867)       (763,498)


NET	(DECREASE)/INCREASE	IN	CASH	AND	CASH	EQUIVALENTS                       (153,796)         93,254
EFFECT	OF	EXCHANGE	RATE	CHANGES                                                    -                7
CASH	AND	CASH	EQUIVALENTS	AT	BEGINNING	OF	YEAR                              164,630          71,369

CASH	AND	CASH	EQUIVALENTS	AT	END	OF	YEAR                                     10,834         164,630


Cash and cash equivalents (Note 20) comprise:
Cash and bank balances                                                          295             361
Fixed deposits and placements with financial institutions                    10,539         164,269
                                                                                                         ANNUAL REPORT 2007



                                                                             10,834         164,630




The accompanying notes form an integral part of the financial statements




                                                                             TA ENTERPRISE BERHAD
                                                                                            (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      1.	 PRINCIPAL	ACTIVITIES	AND	GENERAL	INFORMATION

                             The principal activities of the Company are investment holding and the provision of management services and
                             funding facilities to its subsidiaries. The principal activities of the subsidiaries are described in Note 8 to the financial
                             statements.


                             There have been no significant changes in the nature of the principal activities during the financial year.


                             The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the
                             Main Board of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the
                             Company is located at 34th Floor, Menara TA One, No. 22, Jalan P. Ramlee, 50250 Kuala Lumpur.


                             The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
                             directors on 17 May 2007.


                      2.	 FINANCIAL	RISK	MANAGEMENT	POLICIES

                             The Group’s financial risk management policies seek to ensure that adequate financial resources are available for
                             the development of the Group’s businesses whilst managing its currency, interest rate, market, credit, liquidity
                             and cash flow risks. The Group manages and allocates its capital resources centrally to ensure that all business
                             units of the Group maintain the required levels of capital and prudent levels of liquidity at all times. The Group
                             operates within clearly defined guidelines that are approved by the Board of Directors.


                             The Group’s stockbroking businesses in Malaysia are supervised by the Securities Commission (“SC”) and Bursa
                             Malaysia Securities Berhad whilst the Group’s derivative trading subsidiary in Malaysia is supervised by the SC, Bursa
                             Malaysia Derivatives Berhad and Bursa Malaysia Derivatives Clearing House Berhad. These subsidiaries are
                             required to comply with minimum capital adequacy requirements.                    The stockbroking business in Hong
                             Kong is supervised by the Hong Kong Securities and Futures Commission (“HKSFC”) and is required to maintain
                             liquid capital in accordance with the financial resources rules of the HKSFC.


                             The Group’s asset management and unit trust businesses in Malaysia are supervised by the SC and are required to
                             adhere to the Guidelines issued by the SC.
 ANNUAL REPORT 2007




                      	
                      	      The Group’s property development activities in Malaysia, in its capacity as housing developers are governed by
                             the Housing Development (Control and Licensing) Act, 1966. As a licensed housing developer in Malaysia, the
                             relevant subsidiaries are required to maintain Housing Development Accounts for all monies received from the
                             sale of housing accommodation by its Malaysian property arm.
048




                      TA ENTERPRISE BERHAD
                      (194867-M)
    The Group’s policies in respect of the major areas of treasury activities are set out as follows:

    (a)	 	   Currency	Risk

             The Group operates internationally and is exposed to foreign exchange risk arising from various currency
             exposures primarily with respect to Australian Dollar, Canadian Dollar, United States Dollar, Hong Kong Dollar,
             Singapore Dollar, South African Rand, Sri Lankan Rupee, Philippine Peso and Chinese Renminbi.

             Foreign exchange transaction risk impacting the Group’s income statement arises both from external and
             intra-group trading, investing and funding activities. Currency risks relating to operating activities in the
             normal course of business of the Group are generally not hedged. Such risks may be naturally hedged
             through planned course of business and by matching income and expenditure to minimise currency
             exchange. Currency exposures arising on the holding of monetary assets and liabilities denominated
             in foreign currencies, mainly intra-group and external loans and deposits with financial institutions, are
             generally hedged selectively. Hedges may be taken using derivative financial instruments such as forward
             foreign exchange contracts for foreseeable significant exchange rate fluctuations and are managed by the
             Group Treasury.

             The derivative trading subsidiary of the Group in Malaysia receives foreign currency denominated clients’
             monies that are deposited in foreign currency denominated bank accounts maintained in Malaysia. The
             foreign currencies accepted include United States Dollar and Singapore Dollar and other foreign currencies
             permitted are Australian Dollar, British Pound, Japanese Yen and Euro. Such currency risk is naturally
             hedged in the absence of any open positions from such clients. Any gains or losses on conversion of
             currencies on instructions by customers are normally borne by customers.

             Foreign exchange translation differences arising on consolidation and those attributable to net investment
             in foreign subsidiaries are recorded and disclosed within shareholders’ equity of the Group. The Group
             maintains a natural hedge for certain subsidiaries/trust, by borrowing in the currency of the country in
             which the property or investment is located or by borrowing in currencies that match the future revenue
             stream to be generated from its investments.

             International business, by its nature, is subject to risks including, but not limited to: changing economic
             conditions, changes in global political environment, changes in financial and trade regulations and foreign
             exchange rate volatility. In general, the Group maintains appropriate reserves to address normal currency
                                                                                                                                 ANNUAL REPORT 2007


             fluctuations.
             	    	
	   (b)			   Interest	Rate	Risk

	   	    	   The Group’s interest rate risk also arises from its interest-bearing borrowings. 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.




                                                                                                TA ENTERPRISE BERHAD
                                                                                                                    (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      2.	 FINANCIAL	RISK	MANAGEMENT	POLICIES	(cont’d)

                      	      (b)			    Interest	Rate	Risk	(cont’d)

                                       The Group does not generally hedge interest rate risks. Hedging of risks through the use of financial
                                       instruments may be adopted should its use results in significant cost savings. Interest rates on investments
                                       and borrowings are determined based on prevailing market rates. The Group has a policy to ensure that the
                                       rates obtained are competitive.


                             (c)	 	    Market	Risk

                                       The Group’s principal exposure to market risk arises mainly from changes in equity prices and the state of the
                                       domestic and foreign property markets.

                                       The Group does not use derivative financial instruments to manage equity risk. The risk of loss in value
                                       is minimised via thorough analysis before making the investments and continuous monitoring of the
                                       performance and risk of the investments made. Equity investments classified as current assets are available
                                       for sale and the Group manages disposal of its investments to optimise returns on realisation. Provisions
                                       are established for adverse changes in fair values of short term investments whilst reversals are recognised
                                       to income statement to the extent of previously provided amounts. Total gains are recognised only upon
                                       disposal of investment. Equity investments classified as non-current assets are held for long term. Changes
                                       in market values of long term investment held for strategic reasons, except where an impairment occurs
                                       do not affect the book value of the investments.

                                       The Group manages its exposure to adverse fluctuation in property value via thorough analysis before
                                       investing in the property and continuous monitoring of the state of the property market. The Group
                                       optimises its returns on realisation by managing its decisions to dispose or hold, continue or postpone
                                       development of these properties based on the current and expected future trend of the property market.
                                       Provision for impairment losses will be made when there is indication of adverse changes in fair values of
                                       these properties. Reversals are made to the income statement immediately to the extent of the previously
                                       provided amount when the adverse condition which leads to the impairment of assets cease to exist.

                      	      	     	   Intrinsic in all businesses, the overall performance of the Group is also driven by external conditions such
                                       as global and domestic economies that are largely unpredictable and uncontrollable. Generally, development
 ANNUAL REPORT 2007




                                       and performance of both the regional and domestic capital and property markets have a direct impact
                                       on the Group.


                             (d)		     Credit	Risk

                                       Credit risk, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits
                                       and monitoring procedures. Credit risks are minimised and monitored via strictly limiting the Group’s
                                       associations to business partners with high creditworthiness. A credit approval limit structure approved by
                                       the Board of Directors is in place for all lending activities of the Group. Trade and financial receivables are
050




                                       monitored on an ongoing basis via group-wide management reporting procedures.




                      TA ENTERPRISE BERHAD
                      (194867-M)
            For effective management of non-performing accounts (“NPAs”), a debt recovery unit has been established
            to focus on formulating and executing recovery action plans for major NPAs. On the whole, NPAs are
            monitored closely by the Group with greater emphasis being placed on TA Centre Berhad, TA Securities
            Holdings Berhad, TA First Credit Sdn. Bhd., TA Securities (HK) Limited and TA Antarabangsa Finance South
            Africa Limited.

            Generally, provisions are made in accordance with specific regulatory requirements or for the unsecured
            portion of the Group’s NPAs. Write-off of debts against specific provisions are made only when avenues
            of recovery have been exhausted and the loans are deemed to be irrecoverable in the foreseeable future.
            Detailed information on NPAs and provisioning requirements are disclosed in the relevant notes to the
            financial statements.

            The Group does not have any significant exposure or concentration of credit risk that may arise from exposures
            to a single debtor or to groups of related debtors other than as disclosed in Note 14 to the financial
            statements.


   (e)	 	   Liquidity	and	Cash	Flow	Risk

            The Group seeks to achieve a balance between certainty of funding even in difficult times for the markets or
            the Group and a flexible, cost-effective borrowing structure. The policy, therefore, seeks to ensure that, at a
            minimum, all projected net borrowing needs are covered by committed facilities. In addition, debt maturities
            are closely monitored to ensure that the Group is able to meet its obligations as they fall due and any
            refinancing needs are met with.

            The Group’s Treasury Department manages the Group’s funding needs and allocates funds in such a manner
            that all business units maintain optimum levels of liquidity sufficient for their operations without leaving
            them unutilised. To this end, daily cash flow forecasts are prepared taking into account all major transactions.
            Any excess funds from operating cash cycles, which are temporary in nature, are invested in deposits as and
            when available with financial institutions at the most competitive interest rates obtainable.


3.	 SIGNIFICANT	ACCOUNTING	POLICIES

   (a)	 	   Basis	of	Preparation                                                                                                ANNUAL REPORT 2007


            The financial statements of the Group and the Company have been prepared under the historical cost
            convention unless otherwise indicated in the accounting policies below and comply with the provisions
            of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia. At the beginning of
            the current financial year, the Group and the Company had adopted new and revised FRSs which are
            mandatory for financial periods beginning on or after 1 January 2006 as described fully in Note 3.1.

   (b)			   Revenue	Recognition


            (i)	   	 ross brokerage fees in stockbroking subsidiaries are recognised on an accrual basis upon the
                   G
                   execution of trade on behalf of clients, computed based on a pre-determined percentage of the
                   contract value.




                                                                                               TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.	 SIGNIFICANT	ACCOUNTING	POLICIES	(cont’d)

                             (b)			    Revenue	Recognition	(cont’d)


                                       (ii)   Interest earned by the local stockbroking subsidiaries included in service and administrative charges
                                              are generally recognised on an accrual basis, except when the receivable is classified as non-performing.
                                              Where an account is classified as non-performing, interest is suspended until it is realised on a cash
                                              basis, except for margin accounts where interest is suspended until the account is reclassified
                                              as performing. The suspension of interest income is made in accordance with the Rules of Bursa
                                              Malaysia Securities Berhad.


                                   	   (iii) Interest income from financial receivables of money lending and finance subsidiaries is generally
                                              recognised on an accrual basis, except when a loan debtor becomes non-performing. Interest income
                                              on non-performing loan is suspended until it is realised on a cash basis. Generally, loan debtors are
                                              deemed to be non-performing when repayments are in arrears for more than 3 months or when the
                                              outstanding balance is greater than the value of the collateral pledged.


                                       (iv) Interest income from fixed deposits with licensed banks are recognised on an accrual basis. Interest
                                              income from other sources is recognised on a receipt basis due to uncertainty over its realisation until
                                              physical receipt.


                                       (v)    Rollover fees and penalty interest for late payments earned from financial receivables are recognised
                                              on a receipt basis due to uncertainty over recoverability of income.


                                              Rollover fees earned by the local stockbroking subsidiaries are generally recognised on an accrual
                                              basis, except when the receivable is classified as non-performing. Rollover fees from margin accounts
                                              will be suspended until the accounts are reclassified as performing.


                                       (vi) Acceptance fees earned by a money lending subsidiary are recognised upon the drawdown of loan
                                              facility in accordance with the terms of the agreement.


                                       (vii) Service and processing fees earned on money lending and ESOS financing activities of a money
 ANNUAL REPORT 2007




                                              lending subsidiary included in the service and administrative charges are recognised upon the
                                              drawdown of loans.


                                       (viii) Dividend income from marketable securities and unquoted shares are recognised when the Group’s
                                              or the Company’s right to receive payment is established, except when there is substantial uncertainty
                                              over the recoverability of income so recognised. In such instances, dividend income is recognised on
                                              a receipt basis.


                                       (ix) Rental income is recognised rateably over the period of tenancy.
052




                      TA ENTERPRISE BERHAD
                      (194867-M)
             (x)   Income from disposals of marketable securities and sale of completed properties are recognised upon
                   the transfer of risks and rewards of ownership.


             (xi) Revenue from sale of development properties is accounted for by the stage of completion method in
                   respect of all property units that have been sold. The stage of completion is determined by reference
                   to the project costs incurred to date to the total estimated costs where the outcome of the projects
                   can be reliably estimated.


             (xii) Placement and underwriting fee in stockbroking subsidiaries are recognised when the right to receive
                   payment is established in accordance with the terms of the placement and/or underwriting
                   agreements.


             (xiii) Manager’s fee from unit trust funds, management fees and nominee service charges are recognised
                   when the services are performed.


             (xiv) Service charges from the sale of units to unitholders is recognised upon the allotment of the trust
                   units, net of cost of units sold.


             (xv) Revenue from rental of hotel rooms, sale of food and beverage and other related income from hotel
                   operations are recognised upon the sale of goods or the delivery of the service to the customers.
                   All such revenue from a subsidiary incorporated in Australia are stated net of the amount of goods and
                   service tax applicable to such revenue.


             (xvi) All other income is recognised on an accrual basis.


    (c)	 	   Subsidiaries	and	Basis	of	Consolidation


             (i)	 Subsidiaries
                   Subsidiaries are entities over which the Group has power to exercise control over the financial and
                   operating policies so as to obtain benefits therefrom. The existence and effect of potential voting
                   rights that are currently exercisable or convertible are considered when assessing whether the Group
                   has such power over another entity.
                                                                                                                               ANNUAL REPORT 2007



                   In the Company’s separate financial statements, subsidiaries are stated at cost less provision for any
                   impairment losses. The assessment and recognition of impairment of assets are in accordance with
                   the accounting policy referred to in Note 3(t). On disposal of such investments, the difference between
                   net disposal proceeds and their carrying amounts is included in income statement.


	   	    	   (ii)	 Basis	of	consolidation
                   The consolidated financial statements include the financial statements of the Company and all its
                   subsidiaries and trusts, of which the Group is the beneficiary, made up to the end of the financial
                   year.




                                                                                              TA ENTERPRISE BERHAD
                                                                                                                  (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.	 SIGNIFICANT	ACCOUNTING	POLICIES	(cont’d.)

                             (c)	 	    Subsidiaries	and	Basis	of	Consolidation	(cont’d.)	                                    	 		                       		

                      	      	     	   (ii)	 Basis	of	consolidation	(cont’d.)
                                            Subsidiaries and trusts are consolidated using the acquisition method of accounting. Under the
                                            acquisition method of accounting, the results of subsidiaries and trusts acquired or disposed during
                                            the year are included in the consolidated income statement from the effective date of acquisition, being
                                            the date on which the Group obtains control, and continue to be consolidated up to the date that
                                            such control ceases. The assets and liabilities (including contingent liabilities assumed) of a subsidiary
                                            or trust are measured at their fair values at the date of acquisition and these values are reflected in the
                                            consolidated balance sheet. The difference between the cost of an acquisition and the fair value of the
                                            Group’s share of the net assets of the acquired subsidiary or trust at the date of acquisition is included
                                            in the consolidated balance sheet as goodwill or reserve arising on consolidation. Costs of acquisition is
                                            measured as the aggregate of the fair values, at the date of exchange, of the assets given, liabilities
                                            incurred or assumed, and equity instruments issued, plus any costs directly attributable to the
                                            acquisitions.

                                            Prior to the change in accounting policies on 1 February 2006, goodwill arising on consolidation was
                                            written off to the income statement. The Group does not have any goodwill on consolidation.

                                            Prior to the change in accounting policies on 1 February 2006, reserve arising on consolidation
                                            was recognised as an item in non-current assets to be recognised in the income statement upon
                                            the disposal of the subsidiary or trust from which it arises unless the subsidiary or trust has a profitable
                                            track record. After the change in accounting policies from 1 February 2006, reserve arising on
                                            consolidation is now to be recognised immediately in the income statement in the year of acquisition.
                                            In accordance with the transitional provisions of FRS 3, the reserve arising on consolidation as at 1
                                            February 2006 of RM4,378,200 was derecognised with a corresponding increase in retained earnings.

                                            Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and
                                            the consolidated financial statements reflect external transactions only. Unrealised losses are eliminated
                                            on consolidation unless costs cannot be recovered. Uniform accounting policies are adopted in the
                                            consolidated financial statements for like transactions and event in similar circumstances.
 ANNUAL REPORT 2007




                                            Minority interest represents the portion of results and net assets in subsidiaries not held by the Group.
                                            It is measured at the minorities’ share of the fair values of the identifiable assets and liabilities of the
                                            acquiree at the acquisition date and the minorities’ share of changes in the subsidiaries’ equity since then.

                             (d)		     Associated	Companies

                                       The Group treats as associated companies those companies in which a long term equity interest of between
                                       20 and 50 percent is held and that is neither a subsidiary nor an interest in a joint venture and where it
                                       exercises significant influence over the financial and operating policies through management participation
                                       but not in control or joint control over those policies. The associate is equity accounted for from the date
054




                                       the Group obtains significant influence until the date the Group ceases to have significant influence over
                                       the associate.




                      TA ENTERPRISE BERHAD
                      (194867-M)
             Investments in associated companies are accounted for in the consolidated financial statements using the
             equity method of accounting based on the audited or management financial statements of the associated
             companies.

             The Group’s share of post-acquisition profits less losses of associated companies is included in the
             consolidated income statement and the Group’s interest in associated companies is stated at cost plus the
             Group’s share of post-acquisition retained profits or accumulated losses and reserves. Where there has been
             a change recognised directly in the equity of the associate, the Group recognises its share of such changes.

             Unrealised gains on transactions between the Group and the associated companies are eliminated to
             the extent of the Group’s interest in the associated companies. Unrealised losses are eliminated unless cost
             cannot be recovered. After the application of the equity method, the Group determines whether it is
             necessary to recognise any additional impairment loss with respect to the Group’s net investment in the
             associate.

             The Group does not have any goodwill relating to its associates.

             When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including
             any long-term interests that, in substance, form part of the Group’s net investment in the associate, the Group
             does not recognise further losses, unless it has incurred obligations or made payments on behalf of the
             associate.

             The most recent available audited financial statements of the associates are used by the Group in applying
             the equity method. When the dates of the audited financial statements used are not coterminous with
             those of the Group, the share of results is arrived at from the last audited financial statements available and
             management financial statements to the end of the accounting period. Uniform accounting policies are
             adopted for like transactions and events in similar circumstances.

             In the Company’s separate financial statements, associates are stated at cost less provision for any impairment
             losses. On disposal of such investments, the difference between net disposal proceeds and their carrying
             amounts is included in income statement.

    (e)	 	   Investments	                          	             	                               	 		                       		

	   	    	   Short	term	investments
                                                                                                                                 ANNUAL REPORT 2007



             (i)    Marketable securities are carried at the lower of cost and market value, determined on a contract-
                    by-contract basis. Cost is determined based on the contract value while market value is determined
                    based on quoted market values. Increases or decreases in the carrying amount of marketable securities
                    are credited or charged to the income statement. On disposal of marketable securities, the difference
                    between net disposal proceeds and its carrying amount is charged or credited to the income statement.


             (ii)   Cost of trust units are determined using the weighted average method of valuation. Market value of
                    the trust units is determined based on the underlying value of these trust funds.




                                                                                               TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.	 SIGNIFICANT	ACCOUNTING	POLICIES	(contd.)

                      	      (e)	 	   Investments	(cont’d)


                                      Long	term	investments


                                      Marketable securities and other investments held for the long term are stated at cost less provision for any
                                      impairment losses. The assessment and recognition of impairment of assets are in accordance with the
                                      accounting policy referred to in Note 3(t).


                                      On disposal of an investment, the difference between net disposal proceeds and its carrying amount is
                                      charged or credited to the income statement.


                             (f)	 	   Foreign	Currencies


                                      (i)	 	 unctional	and	Presentation	Currency
                                           F
                                           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
                                           consolidated financial statements are presented in Ringgit Malaysia (RM), which is also the Company’s
                                           functional currency.


                                            F
                                      (ii)	 	 oreign	currency	transactions
                                           In preparing the financial statements of the individual entities, transactions in currencies other than
                                           the entity’s functional currency (foreign currencies) are recorded in the functional currencies at rates of
                                           exchange approximating those ruling at the date of transaction. At each balance sheet date, foreign
                                           currency monetary items are translated into Ringgit Malaysia at exchange rates approximating those
                                           ruling at that date, unless hedged by forward foreign exchange contracts, in which case the rates
                                           specified in such forward contracts are used. Non-monetary items initially denominated in foreign
                                           currencies, which are carried at historical cost are translated using the historical rate as of the date
                                           of acquisition and any non-monetary items which are carried at fair value are translated using the
                                           exchange rate that existed when the values were determined.
 ANNUAL REPORT 2007




                                           All exchange rate differences are taken to the income statement with the exception of differences
                                           on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.
                                           These exchange differences are taken directly to equity until the disposal of the net investment, at
                                           which time they are recognised in the income statement.


                                      (iii)	 Foreign	Operations
                                           Financial statements of foreign consolidated subsidiaries and trusts are translated at year end
                                           exchange rates with respect to the assets and liabilities, and at exchange rates at the dates of the
                                           transactions with respect to the income statement. All resulting translation differences are recognised
056




                                           in equity.




                      TA ENTERPRISE BERHAD
                      (194867-M)
             The principal exchange rates used for each respective unit of foreign currency ruling at the balance
             sheet date are as follows:
                                                                                                     	                      		
		   	   	   	    	                                	                	                             2007	                	2006	
	    	   	   	    	                                	                	                               R
                                                                                                  	 	 M	                 RM	


             Australian Dollar (“A$”)                                                             2.7030              2.8210
             Canadian Dollar (“C$”)                                                               2.9690              3.2635
             United States Dollar (“US$”)                                                         3.5015              3.7495
             Hong Kong Dollar (“HK$”)                                                             0.4484              0.4834
             Singapore Dollar (“S$”)                                                              2.2768              2.3068
             South African Rand (“Rand”)                                                          0.4794              0.6140
             Sri Lankan Rupee (“Rs”)                                                              0.0323              0.0368
             Philippine Peso (“Peso”)                                                             0.0714              0.0715
             Chinese Renminbi (“RMB”)                                                             0.4503              0.4653


     (g)		   Property,	Plant	and	Equipment	and	Depreciation


             Property, plant and equipment are initially recorded at cost. Subsequent costs are included in the asset’s
             carrying amount or are recognised as a separate asset, as appropriate, only when it is probable that future
             economic benefits associated with the items will flow to the Group and the cost of the items can be
             measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and
             maintenance are charged to the income statement during the financial period in which they are incurred.


             Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost less
             accumulated depreciation and any accumulated impairment losses.


             Freehold land has an unlimited useful life and therefore is not depreciated. Long term leasehold
             land has unexpired period of between 52 years to 73 years. Depreciation of other property, plant and
             equipment is provided on a straight line basis to write off the cost of each asset to its residual value over the
             estimated useful life at the following annual rates:


             Long term leasehold land                               2%
                                                                                                                                  ANNUAL REPORT 2007


             Buildings                                              2% to 6.67%
             Lifts and renovations                                  10% to 33.33%
             Furniture and fittings                                 10% to 33.33%
             Motor vehicles                                         20%
             Office equipment and computers                         10% to 33.33%


             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.




                                                                                                TA ENTERPRISE BERHAD
                                                                                                                     (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.	 SIGNIFICANT	ACCOUNTING	POLICIES	(cont’d.)

                             (g)		     Property,	Plant	and	Equipment	and	Depreciation	(cont’d)

                                       An item of property, plant and equipment is derecognised upon the 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 the income statement.

                             (h)		     Investment	Properties

                                       Investment properties are properties which are held either to earn rental income or for capital appreciation
                                       or both. Such properties are measured initially at cost, including transaction costs.

                                       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 gain or losses on the retirement or disposal of an investment property are recognised in the income
                                       statement in the year in which they arise.


                             (i)	 	    Land	Held	for	Property	Development	and	Property	Development	Costs	                 	 		                     	

                      	      	     	        L
                                       (i)	 	 and	held	for	property	development
                                            Land held for property development consists of land where no development activities have been
                                            carried out or where development activities are not expected to be completed within the normal
                                            operating cycle. Such land is classified within non-current assets and is stated at cost plus incidental
                                            expenditure incurred to put the land in a condition ready for development and less any accumulated
                                            impairment losses. The policy for the recognition and measurement of impairment losses is in
                                            accordance with Note 3(t).

                                            Land held for property development is reclassified as property development costs at the point when
                                            development activities have commenced and where it can be demonstrated that the development
                                            activities can be completed within the normal operating cycle.

                                       (ii) Property development costs
                                            Land and development costs are classified as property development costs when significant
                                            development work has been undertaken and is expected to be completed within the normal
 ANNUAL REPORT 2007




                                            operating cycle.

                                            Property development costs comprise all costs that are directly attributable to development activities
                                            or that can be allocated on a reasonable basis to such activities, less any accumulated impairment
                                            losses. The policy for the recognition and measurement of impairment losses is in accordance with
                                            Note 3(t).

                                            When the financial outcome of a development activity can be reliably estimated, property development
                                            revenue and expenses are recognised in the income statement by using the stage of completion
                                            method. The stage of completion is determined by the proportion that property development costs
058




                                            incurred for work performed to date bear to the estimated total property development costs.




                      TA ENTERPRISE BERHAD
                      (194867-M)
               Where the financial outcome of a development activity cannot be reliably estimated, property
               development revenue is recognised only to the extent of property development costs incurred that is
               probable will be recoverable, and property development costs on properties sold are recognised as an
               expense in the period in which they are incurred.

               Any expected loss on a development project, including costs to be incurred over the defects liability
               period, is recognised as an expense immediately.

               Property development costs not recognised as an expense are recognised as an asset, which is
               measured at the lower of cost and net realisable value.


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

(j)	 	   Land	Held	for	Resale

         Land held for resale relates to freehold land stated at cost, including all incidental expenditure incurred in
         acquiring the land and preparing it for resale, less any accumulated impairment losses. The policy for the
         recognition and measurement of impairment losses is in accordance with Note 3(t).

(k)	 	   Properties	Held	for	Resale

         Properties held for resale are stated at the lower of cost and net realisable value and relate to development
         projects which have been completed. Cost is determined on the specific identification basis and includes
         costs of land, construction and appropriate development expenses.

(l)	 	   Intangible	Assets

         (i)   Goodwill
               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
                                                                                                                               ANNUAL REPORT 2007


               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. The Group does not have any goodwill on consolidation.

         (ii)	 Other	Intangible	Assets
               Intangible assets acquired separately are measured on initial recognition at cost. Following initial
               recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated
               impairment losses. The useful lives of intangible assets are assessed to be either finite or indefinite.
               Intangible assets with finite lives are amortised on a straight-line basis over the estimated economic
               useful lives and assesed for impairment whenever there is an indication that the intangible asset may
               be impaired. The amortisation period and the amortisation method for an intangible asset with a finite
               useful life are reviewed at least at each balance sheet date.




                                                                                             TA ENTERPRISE BERHAD
                                                                                                                  (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.	 SIGNIFICANT	ACCOUNTING	POLICIES	(cont’d.)

                             (l)	 	    Intangible	Assets	(cont’d)
                      	      	     	   (ii)	 Other	Intangible	Assets	(cont’d)
                                            The useful life of computer software classified as intangible assets is three years. The useful life of
                                            trading right of the Stock Exchange of Hong Kong Limited is estimated at 5 years and had been fully
                                            amortised as at the balance sheet date.

                                            Intangible assets with indefinite useful lives are not amortised but tested for impairment annually
                                            or more frequently if the events or changes in circumstances indicate that the carrying value may be
                                            impaired. The useful life of an intangible asset with an indefinite life is also reviewed annually
                                            to determine whether the useful life assessment continues to be supportable. The Group presently
                                            does not have intangible assets with indefinite useful life.

                             (m)	      Inventories

                                       Inventories, which comprise food, beverages and other consumables, are stated at the lower of cost
                                       (determined on a first-in, first-out basis) and net realisable value.

                                       Net realisable value is the estimated selling price in the ordinary course of business less any estimated
                                       costs of completion or costs necessary to make the sale.

                             (n)		     Financial,	Trade	and	Other	Receivables	and	Amounts	Due	From	Subsidiaries

                                       These receivables are carried at anticipated realisable values. Bad debts are written-off when identified.
                                       An estimate is made for doubtful debts based on review of all outstanding amounts as at the balance sheet
                                       date. For trade and financial receivables of subsidiaries involved in stockbroking and financial services,
                                       specific provision is made for debts which are considered doubtful or have been classified as non-performing,
                                       net of interest-in-suspense, rollover fees-in-suspense and taking into consideration any collateral held. The
                                       classification of trade receivable as either performing or non-performing is in accordance with the Rules of
                                       Bursa Malaysia Securities Berhad for local subsidiaries involved in stockbroking business.

                             (o)		     Cash	and	Cash	Equivalents

                                       Cash and cash equivalents include cash on hand, bank balances, short term deposits and placements with
 ANNUAL REPORT 2007




                                       licensed financial institutions, excluding monies held in trust, deposits pledged, balances in Housing
                                       Development Accounts, net of outstanding bank overdrafts.

                             (p)		     Equity	Instruments

                                       Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period
                                       in which they are declared.

                             (q)		     Trade	and	Other	Payables	and	Amounts	Due	To	Subsidiaries
060




                                       These payables are stated at the fair value of the consideration to be paid in the future for goods and
                                       services received.




                      TA ENTERPRISE BERHAD
                      (194867-M)
(r)	 	   Borrowings	and	Borrowing	Costs

         All loans and borrowings are initially recognised at the fair value of the consideration received less directly
         attributable transaction costs. After initial recognition, interest bearing loans and borrowings are
         subsequently measured at amortised cost using the effective interest rate method. Interest incurred on
         borrowings for working capital is charged to the income statement as expense as and when incurred. Interest
         incurred on borrowings relating to property development costs is capitalised during the period of active
         development until they are ready for sale or upon the suspension of development activities.

(s)	 	   Leases

         A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards
         incidental to ownership. All leases that do not transfer substantially all the risks and rewards are classified as
         operating leases.

         (i)	 	 perating	Leases	-	the	Group	as	Lessee
              O
              Operating lease payments are charged to the income statement on a straight-line basis over the term
              of the relevant lease. The aggregate benefit of any incentives provided by the lessor is recognised as a
              reduction of rental expense over the lease term on a straight-line basis.

         (ii)	 	 perating	Leases	-	the	Group	as	Lessor
               O
              Assets lease out under operating leases are presented on the balance sheets according to the
              nature of the assets. Rental income from operating leases is recognised on a straight-line basis
              over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an
              operating lease are added to the carrying amount of the leased asset and recognised on a
              straight-line basis over the lease term.

(t)	 	   Impairment	of	Non-financial	Assets

         The carrying amounts of assets, other than inventories and deferred tax 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 to determine the amount of impairment loss.

         For the purpose of impairment testing of these assets, recoverable amount is determined on an individual
         asset basis unless the asset does not generate cash flows that are largely independent of those from other
                                                                                                                               ANNUAL REPORT 2007


         assets. If this is the case, recoverable amount is determined for the cash-generating units (CGU) to which the
         asset belongs to.

         An asset’s recoverable amount is the higher of an asset’s or cash-generating units’ (“CGU”) fair value less costs
         to sell and its value in use. In assessing value in use, the estimated future cash flows are discounted to their
         present value using a pre-tax discount rate that reflects current market assessments of the time value of
         money and the risks specific to the asset. Where the carrying amount of an asset exceeds its recoverable
         amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses
         recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying amount of any
         goodwill allocated to those units or groups of units and then, to reduce the carrying amount of the other
         assets in the unit or groups of units on a pro-rata basis.




                                                                                             TA ENTERPRISE BERHAD
                                                                                                                  (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.	 SIGNIFICANT	ACCOUNTING	POLICIES	(cont’d)

                             (t)	 	   Impairment	of	Non-financial	Assets	(cont’d)

                                      An impairment loss is recognised in the income statement in the period in which it arises. An impairment
                                      loss is reversed if, and only if, there has been a change in the estimates used to determine the asset’s
                                      recoverable amount since the last impairment loss was recognised. The carrying amount of an asset is
                                      increased to its recoverable amount, provided that this amount does not exceed the carrying amount that
                                      would have been determined (net of amortisation or depreciation) had no impairment loss been recognised
                                      for the asset in prior years. A reversal of impairment loss is recognised in the income statement.

                             (u)		    Forward	Exchange	Contracts

                                      Outstanding forward exchange contracts at the balance sheet date are valued based on applicable forward
                                      rates ruling at that date, taking maturity profiles into account. Gains or losses are recognised in the income
                                      statement in the year they arise.

                                      The Group may use derivative financial instruments to mitigate certain currency risks. The Group’s criteria for
                                      a derivative instrument to be classified as a hedge includes:

                                      •    the hedge transaction is expected to be highly effective in achieving offsetting changes in fair value or
                                           cash flows attributable to the hedged risk;
                                      •    the effectiveness of the hedge can be reliably measured;
                                      •    there is adequate documentation of the hedging relationships at the inception of the hedge; and
                                      •    for cash flow hedges, the forecasted transaction that is a subject of the hedges must be
                                           highly probable.

                                      When an anticipated future transaction is hedged and the underlying position has not been recognised in
                                      the financial statements, any change in the fair value of the hedging instrument is recognised in the income
                                      statement for the period.

                                      The Group may use forward exchange contracts to mitigate exposure to selective foreign currency risk.
                                      Forward exchange contracts are accounted for as foreign currency transactions. Gains and losses on
                                      derivative financial instruments used for hedging of foreign currency transactions are recognised as
                                      income or expense on the same basis as the corresponding hedged position. Foreign exchange contracts
 ANNUAL REPORT 2007




                                      are translated at exchange rates prevailing at the end of the reporting period representing their fair values.

                      	      (v)	 	   Provision	for	Liabilities

                                      Provision for liabilities is recognised when the Group and the Company have a present obligation as a result
                                      of a past event and it is probable that an outflow of resources embodying economic benefits will be required
                                      to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each
                                      balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of
                                      money is material, the amount of a provision is discounted using a current pre-tax rate that reflects, where
                                      appropriate, the risk specific to the liability to the present value of the expenditure expected to be required
062




                                      to settle the obligation.




                      TA ENTERPRISE BERHAD
                      (194867-M)
        Where discounting is used, the increase in the provision due to the passage of time is recognised as
        finance cost.

(w)		   Employee	Benefits

        Short	term	benefits

        Wages, salaries, bonuses and social security contributions are recognised as expenses in the year 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.

        Defined	contribution	plans

        Defined contribution plans are post-employment benefit plans under which the Group pays fixed
        contributions into separate entities or funds and will have no legal or constructive obligation to pay further
        contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee
        services in the current and preceding financial years. As required by law, companies in Malaysia make
        contributions to the state pension scheme, the Employees Provident Fund (“EPF”). Some of the Group’s
        foreign subsidiaries make contributions to their respective countries’ statutory pension schemes. Such
        contributions are recognised as an expense in the income statement as incurred.

        Equity	compensation	benefits

        The TA Enterprise Berhad Employees’ Share Option Scheme (“ESOS”), an equity-settled, share-based
        compensation plan, allows the Group’s employees to acquire ordinary shares of the Company.

        Subsequent to the change in accounting policies from 1 February 2006, the total fair value of share options
        granted to employee is recognised as an employee cost with a corresponding increase in the share option
        reserve within equity over the vesting period and taking into account the probability that the options will
        vest. The fair value of share options is measured at grant date, taking into account, if any, the market vesting
        conditions upon which the options were granted but excluding the impact of any non-market vesting
        conditions. Non-market vesting conditions are included in assumptions about the number of options that
        are expected to become exercisable on vesting date.
                                                                                                                             ANNUAL REPORT 2007



        The Group has not granted any ESOS as at the balance sheet date. At each subsequent balance sheet date
        should the Group have granted any ESOS, the Group will revise its estimate of the number of options that
        are expected to become exercisable on vesting date. It will recognise the impact of the revision of original
        estimates, if any, in the income statement, and a corresponding adjustment to equity over the remaining
        vesting period. The equity amount will be recognised in the share option reserve until the option is exercised,
        upon which it will be transferred to share premium, or until the option expires, upon which it will be
        transferred directly to retained earnings.

        The proceeds received net of any directly attributable transaction costs will be credited to equity when the
        options are exercised.




                                                                                           TA ENTERPRISE BERHAD
                                                                                                                (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.	 SIGNIFICANT	ACCOUNTING	POLICIES	(cont’d)

                             (w)		    Employee	Benefits	(cont’d)

                                      Termination	Benefits

                                      Termination benefits are payable when employment is terminated before the normal retirement date or
                                      whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises
                                      termination benefits as a liability an expense when it is demonstrably committed to either terminate
                                      the employment of current employees according to a detailed plan without possibility of withdrawal or
                                      providing termination benefits as a result of an offer made to encourage voluntary redundancy. In the case
                                      of an offer made to encourage voluntary redundancy, the measurement of termination benefits is based on
                                      the number of employees expected to accept the offer.

                             (x)	 	   Income	Tax

                                      Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected
                                      amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax
                                      rates that have been enacted at the balance sheet date.

                                      Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date
                                      between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In
                                      principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets
                                      are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the
                                      extent that it is probable that taxable profit will be available against which the deductible temporary
                                      differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the
                                      temporary difference arises from goodwill or reserve arising on consolidation or from the initial recognition
                                      of an asset or liability in a transaction which is not a business combination and at the time of the transaction,
                                      affects neither accounting profit nor taxable profit.

                                      Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised
                                      or the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance
                                      sheet date. Deferred tax is recognised in the income statement, except when it arises from a transaction
                                      which is recognised directly in equity, in which case the deferred tax is also charged or credited directly in
                                      equity, or when it arises from a business combination that is an acquisition, in which case the deferred tax is
                                      included in the resulting goodwill or reserve arising on consolidation.

                             (y)	 	   Financial	Instruments
 ANNUAL REPORT 2007




                                      Financial instruments are recognised in the balance sheet when the Group has become a party to the
                                      contractual provisions of the instrument.

                                      Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual
                                      arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability,
                                      are reported as expense or income. Distributions to holders of financial instruments classified as equity are
                                      charged directly to equity. Financial instruments are offset when the Group has a legally enforceable right
                                      to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously
064




                      TA ENTERPRISE BERHAD
                      (194867-M)
             Financial instruments on the balance sheets include short term funds and borrowings, current and non-
             current investments, financial, trade and other receivables and payables, related and associated company
             balances, amounts due to directors and remisiers. The accounting policies on recognition and measurement
             of these items are disclosed in their respective accounting policies.

    (z)	 	   Non-current	Assets	(or	Disposal	Groups)	Held	for	Sale	and	Discontinued	Operation

             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, financial assets and inventories) are measured in accordance
             with FRS 5 that is at the 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 of 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.

                                                                                               	
3.1	 Changes	 in	 Accounting	 Policies,	 Effects	 and	 Changes	 in	 Comparatives	 Arising	 from	
	    Adoption	of	New	and	Revised	FRSs
    On 1 February 2006, the Group and the Company adopted the following FRSs mandatory for financial periods
    beginning on or after 1 January 2006:

         FRS	2		          S
                          	 hare-based	Payment
	   	    FRS	3	           	 usiness	Combinations
                          B
	   	    FRS	5	           	 on-current	Assets	Held	for	Sale	and	Discontinued	Operations
                          N
	   	    FRS	101	         	 resentation	of	Financial	Statements
                          P
	   	    FRS	102		        Inventories
	   	    FRS	108	         Accounting	Policies,	Changes	in	Estimates	and	Errors
	   	    FRS	110	         Events	after	the	Balance	Sheet	Date
                                                                                                                                   ANNUAL REPORT 2007



	   	    FRS	116	         Property,	Plant	and	Equipment
	   	    FRS	121	         The	Effects	of	Changes	in	Foreign	Exchange	Rates
	   	    FRS	127	         Consolidated	and	Separate	Financial	Statements
	   	    FRS	128	         	Investments	in	Associates
	   	    FRS	131	         Interests	in	Joint	Ventures
	   	    FRS	132	         Financial	Instruments:	Disclosure	and	Presentation
	   	    FRS	133	         Earnings	Per	Share
	   	    FRS	136	         Impairment	of	Assets
	   	    FRS	138	         Intangible	Assets
         FRS	140	         Investment	Property




                                                                                                 TA ENTERPRISE BERHAD
                                                                                                                      (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                                                                                                                     	
                      3.1	 Changes	 in	 Accounting	 Policies,	 Effects	 and	 Changes	 in	 Comparatives	 Arising	 from	
                      	    Adoption	of	New	and	Revised	FRSs	(cont’d)

                      	      The adoption of revised FRS 102, 108, 110, 116, 128, 131, 132, 133 and 136 does not result in significant changes
                             in accounting policies of the Group and of the Company. The principal changes in accounting policies and their
                             effects resulting from the adoption of the other new and revised FRSs are discussed below:

                             (a)	 	   FRS	2	:	Share	Based	Payments

                                      Prior to the change in accounting policies from 1 February 2006, no compensation cost or obligation was
                                      recognised upon the grant of ESOS to eligible employees and equity was increased by the proceeds received
                                      when the options were exercised.

                                      Subsequent to the change in accounting policies from 1 February 2006, the total fair value of share options
                                      granted to employee is recognised as an employee cost with a corresponding increase in the share option
                                      reserve within equity over the vesting period and taking into account the probability that the options will
                                      vest. As the Group has not granted any options to its employees, this change in accounting policy did not
                                      affect the financial statements of the Group and the Company.

                             (b)		    FRS	3:	Business	Combinations

                                      Under FRS 3, any excess of the Group’s interest in the net fair value of acquirees’ identifiable assets, liabilities
                                      and contingent liabilities over cost of acquisitions (previously referred to as “reserve on consolidation”), after
                                      reassessment, is now recognised immediately in the income statement.

                                      Prior to 1 February 2006, the reserve on consolidation was recognised as an item in Non-Current Assets in
                                      the balance sheet of the Group and would have been recognised in the income statement upon the disposal
                                      of the trust (of which the Group is a beneficiary) from which it arose. In accordance with the transitional
                                      provisions of FRS 3, the reserve on consolidation as at 1 February 2006 of RM4,378,200 was derecognised
                                      with a corresponding increase in retained profits. The effect on the consolidated balance sheet as at
                                      31 January 2007 is set out in Note 3.1(j)(i). This change has no impact on the consolidated income statement
                                      and the Company’s financial statements.

                             (c)	 	   FRS	5:	Non-current	Assets	Held	for	Sale	and	Discontinued	Operations

                                      Prior to 1 February 2006, TA Antarabangsa Finance South Africa Limited, a subsidiary incorporated in the
 ANNUAL REPORT 2007




                                      Republic of South Africa, had on 5 April 2002 obtained the relevant approval from the Reserve Bank
                                      of South Africa to de-register itself as a commercial bank. Thus, the operation of the subsidiary from
                                      money lending operations only (excluding those from property investment activities that were classified
                                      as continuing operations) was classified as discontinuing from the financial years ended 31 January 2003
                                      to 31 January 2006.

                                      In the current financial year, the Group ceases to classify the money lending operation as discontinuing
                                      as the subsidiary had not entered into any binding sale agreement nor announced any formal disposal plan
                                      to meet the classification criteria specified in FRS 5. This change in classification has been accounted for
                                      retrospectively and the results of the operations previously presented in discontinuing operations were
066




                                      reclassified and included in income from continuing operations for the prior period presented.




                      TA ENTERPRISE BERHAD
                      (194867-M)
         During the current year, the Group has also reclassified a property in South Africa as non-current asset
         held for sale (Note 21).

(d)		    FRS	101:	Presentation	of	Financial	Statements

         Prior to 1 February 2006, minority interests at the balance sheet date were presented in the consolidated
         balance sheet separately from liabilities and equity. Upon the adoption of the revised FRS 101, minority
         interests are now presented within total equity. In the consolidated income statement, minority interests are
         presented as an allocation of the total profit or loss for the year. A similar requirement is also applicable to
         the statement of changes in equity. The revised FRS 101 also requires disclosure, on the face of the statement
         of changes in equity, total recognised income and expenses for the year, showing separately the amounts
         attributable to equity holders of the Company and to minority interests.

         Prior to 1 January 2006, the Group’s share of taxation of asscociates and jointly controlled entities accounted
         for using the equipty method was included as part of the Group’s income tax expense in the consolidated
         income statement. Upon the adoption of the revised FRS 101, the share of taxation of associates and jointly
         controlled entities accounted for using the equity method are now included in the respective shares of profit
         or loss reported in the consolidated income statement before arriving at the Group’s profit or loss before tax.
         These changes in presentation have been applied retrospectively and as disclosed in Note 3.1(j)(iii), certain
         comparatives have been restated. The effects on the consolidated balance sheet as at 31 January 2007
         and consolidated income statement for the year ended 31 January 2007 are set out in Note 3.1(j)(i) and Note
         3.1(j)(ii) respectively. These changes in presentation has no impact on the Company’s financial statements.

(e)	 	   FRS	121	:	The	Effects	of	Changes	in	Foreign	Exchange	Rates

         Prior to 1 February 2006, exchange differences arising on monetary items that formed part of the Group’s net
         investment in foreign operations were recognised in profit or loss in the period in which they arose.

         In line with the adoption of FRS 121 The Effects of Changes in Foreign Exchange Rates and for a more
         appropriate presentation of events/transactions in the consolidated financial statements, the Group changed
         its accounting policy with respect to the recognition of exchange differences arising from the designated
         intra-group monetary items that, in substance, formed part of the Group’s net investment in foreign
         subsidiaries or trusts (of which the Group is a beneficiary) and for which settlement is neither planned nor
         likely to occur in the foreseeable future.
                                                                                                                             ANNUAL REPORT 2007



         Such exchange differences would initially be reclassified to the exchange difference recognised in equity, a
         separate component of equity in the Group’s financial statements and would subsequently be recognised in
         profit or loss on the realisation of the net investment.

         The change in accounting policy has been adopted retrospectively and has resulted in the reclassification
         of such cumulative exchange differences (previously recognised gains) from the retained profits to the
         exchange gain recognised in equity, as disclosed in Note 3.1(j)(iii). The effects on the consolidated balance
         sheet as at 31 January 2007 and consolidated income statement for the year ended 31 January 2007 are set
         out in Note 3.1(j)(i) and Note 3.1(j)(ii) respectively.




                                                                                            TA ENTERPRISE BERHAD
                                                                                                                (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                                                                                                                     	
                      3.1	 Changes	 in	 Accounting	 Policies,	 Effects	 and	 Changes	 in	 Comparatives	 Arising	 from	
                      	    Adoption	of	New	and	Revised	FRSs	(cont’d)

                             (f)	 	   FRS	127:	Consolidated	and	Separate	Financial	Statements

                                      Prior to 1 February 2006, certain subsidiaries were revalued by the directors of the Company and the
                                      revaluation surplus arising from the revaluation amounted to RM108,890,000. As a result of adoption of
                                      FRS 127 which does not permit investment in subsidiaries to be carried at valuation, the aforesaid revaluation
                                      surplus of RM108,890,000 which was included in the Company’s cost of investment in subsidiaries was
                                      reversed. The remaining balance of the aforesaid revaluation surplus that amounted to RM51,440,000
                                      (2006: RM55,246,000) in the shareholders’ equity was correspondingly reversed. The revaluation surplus
                                      which had been previously utilised for the issuance of bonus shares and the cumulative revaluation surplus
                                      that were written down as impairment loss, totalling RM57,450,000 (2006: RM53,644,000), are adjusted
                                      against the retained profits of the Company.

                             (g)		    FRS	138:	Intangible	Assets

                                      FRS 138 requires management to make judgement in classification of asset that incorporates both intangible
                                      and tangible elements, i.e. if computer software should be classified as property, plant and equipment in
                                      accordance FRS 116 or as an intangible asset in accordance with FRS 138, depending on the relative
                                      significance of intangible and tangible element. For example, computer software for a computer-controlled
                                      machine tool that cannot operate without that specific software is an integral part of the related hardware
                                      and it is treated as property, plant and equipment. The same applies to the operating system of a computer.
                                      When the software is not an integral part of the related hardware, computer software is treated as an
                                      intangible asset.

                                      After making such assessment, certain computer software had been reclassified from property, plant and
                                      equipment to intangible assets. These changes in presentation have been applied retrospectively and as
                                      disclosed in Note 3.1(j)(iii), certain comparatives have been restated. The effects on the consolidated balance
                                      sheet as at 31 January 2007 are set out in Note 3.1(j)(i). There were no effects on the consolidated income
                                      statement for the year ended 31 January 2007 and the Company’s financial statements.

                             (h)		    FRS	140:	Investment	Property

                                      The adoption of this new FRS has resulted in a change in classification for a property previously classified as
 ANNUAL REPORT 2007




                                      Property, Plant and Equipment. This property has been reclassified as investment property as it is held to
                                      earn rentals or for capital appreciation or both, and not for use in the production or supply of goods and
                                      services or for administrative purposes. As the Group has chosen to adopt the cost model, such investment
                                      property would be measured at depreciated cost less any accumulated impairment loss.

                                      The change in classification was effected retrospectively and consequently resulted in a reclassification of
                                      property, plant and equipment to investment property for the comparative year as disclosed in Note 3.1(j)(iii).
                                      The effects on the consolidated balance sheet as at 31 January 2007 are set out in Note 3.1(j)(i). There were
                                      no effects on the consolidated income statement for the year ended 31 January 2007 and the Company’s
068




                                      financial statements.




                      TA ENTERPRISE BERHAD
                      (194867-M)
    (i)	 	   FRSs,	amendments	to	FRSs	and	Interpretations	not	yet	effective

             The Group has not early adopted the following FRSs, amendments to FRSs and Interpretations which have
             effective dates as follows:

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

             FRS 139 - Financial Instruments: Recognition and Measurement                        Deferred
             FRS 117 – Leases                                                                    1 October 2006
             FRS 124 - Related Party Transactions                                                1 October 2006
             FRS 6 - Exploration for and Evaluation of Mineral Resources *                       1 January 2007
             Amendment to FRS 1192004 - Employees Benefits -                                     1 January 2007
                   Actuarial Gains and Losses, Group Plans and Disclosures *
             Amendment to FRS 121 The Effects of Changes in Foreign                              1 July 2007
                   Exchange Rates - Net Investment in a Foreign Operation
             IC Interpretation 1: Changes in Existing Decommissioning,                           1 July 2007
                   Restoration and Similar Liabilities*
             IC Interpretation 2: Members’ Shares in Co-operative                                1 July 2007
                   Entities and Similar Instruments *
             IC Interpretation 5: Rights to Interests arising from Decommissioning,              1 July 2007
                   Restoration and Environmental Rehabilitation Funds *
             IC Interpretation 6: Liabilities arising from Participation in a Specific Market    1 July 2007
                   - Waste Electrical and Electronic Equipment *
             IC Interpretation 7: Applying the Restatement Approach under FRS 1292004            1 July 2007
                   - Financial Reporting in Hyperinflationary Economies *
             IC Interpretation 8: Scope of FRS 2 *                                               1 July 2007

             *Not applicable to the Group under its present circumstances

             The above FRSs, amendments to FRSs and Interpretations are expected to have no significant impact on the
             financial statements of the Group upon their initial application except possibly for FRS 139 and as
             disclosed below.

             (i)	 FRS	117:	Leases
                                                                                                                                 ANNUAL REPORT 2007


                  This standard not yet effective and not adopted by the Group requires leasehold land to be accounted
                  for as operating leases. Payments made for leasehold land are required to be classified as prepaid lease
                  and amortised over the term of the lease. Leases of land and buildings are to be classified separately
                  where leasehold building can remain to be classified as property, plant and equipment.

                  The future adoption of this standard may have the effect of requiring certain leasehold land currently
                  included in property, plant and equipment (Note 4) to be segregated and reclassified to prepaid
                  lease.

	   	    	         F
             (ii)	 	 RS	124:	Related	Party	Disclosures
                   This standard not yet effective and not adopted by the Group requires the disclosure of the
                   compensation of key management personnel in future periods.




                                                                                                TA ENTERPRISE BERHAD
                                                                                                                    (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                                                                                                                     	
                      3.1	 Changes	 in	 Accounting	 Policies,	 Effects	 and	 Changes	 in	 Comparatives	 Arising	 from	
                      	    Adoption	of	New	and	Revised	FRSs	(contd.)

                      	      (j)	    Summary	of	effects	and	changes	arising	from	adoption	of	new	and	revised	FRSs	

                                     The following tables provide estimates of the extent to which each of the line items in the balance sheets
                                     and income statements for the year ended 31 January 2007 is higher or lower than it would have been had
                                     the previous policies been applied in the current year:

                                                                                          I
                                                                                          	 ncrease/(Decrease)
                      	      	 	     	      	           FRS	3		      	FRS	5		 	FRS	101		 	FRS	121		 	FRS	127		 	FRS	138		 	FRS140		
                      Description	of	change	       Note 3.1(b)			Note	3.1(c)				Note	3.1(d)		 	Note	3.1(e)		 	Note	3.1(f)		 	Note	3.1(g)		 	Note	3.1(h)		 Total	
                      	      	 	     	      	        	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000	

                      (i)	   Effects	on	balance	sheet	as	at	31	January	2007

                             Group

                             Property, plant and
                               equipment                      -    (31,792)              -              -             -        (491)    (192,931) (225,214)

                             Investment property              -            -             -              -             -             -     192,931 192,931

                             Intangible assets                -            -             -              -             -         491               -        491

                             Reserves on
                               consolidation           (4,378)             -             -              -             -             -             -    (4,378)

                             Non-current asset
                              classified as held
                              for sale                        -     31,792               -              -             -             -             -    31,792

                             Foreign exchange
                               difference recognised
                               in equity                      -            -             -       41,899               -             -             -    41,899
                             Retained earnings            4,378            -             -              -             -             -             -      4,378
                             Total equity                     -            -        8,044               -             -             -             -      8,044

                      	      Company
 ANNUAL REPORT 2007




                             Investment in subsidiaries       -            -             -              -   (108,890)               -             - (108,890)
                             Revaluation reserve              -            -             -              -      51,440               -             -    51,440
                             Retained earnings                -            -             -              -      57,450               -             -    57,450
070




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                          I
                                                                          	 ncrease/(Decrease)
	     	 	     	      	            FRS	3		      	FRS	5		 	FRS	101		 	FRS	121		 	FRS	127		 	FRS	138		 	FRS140		
Description	of	change	       Note 3.1(b)			Note	3.1(c)				Note	3.1(d)		 	Note	3.1(e)		 	Note	3.1(f)		 	Note	3.1(g)		 	Note	3.1(h)		 Total	
	     	 	     	      	         	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000	

(ii)	 Effects	on	income	statement	for	the	year	ended	31	January	2007

      Group

      Other expenses/profit
        for the year                    -                 -               -     11,671                       -           -               -    11,671

      Company

      Other expenses/profit
        for the year                    -                 -               -                  -       3,717               -               -     3,717


(iii)	 Restatement	of	comparatives
	 	 The following comparative amounts have been restated arising from the effects of adopting the new and revised FRSs:

                              Previously	stated                       	                  I
                                                                                         	 ncrease/(Decrease)	 	                         	 Restated
	 	   	 	   	 		    			                           		      FRS	101		 	FRS	121		 	FRS	127		 	FRS	138		 	FRS140		
Description	of	change	                            		 			Note	3.1(d)		 	Note	3.1(e)		 	Note	3.1(f)		 	Note	3.1(g)		 	Note	3.1(h)		 	
	 	   	 	   	 			   		                      RM’000		      	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000	

      At	1	February	2005	                             	               	                  	                   	        	               	                	
	 	   Group
      Foreign exchange difference
        recognised in equity                      -               -             45,232                   -           -               -        45,232
      Retained profits                      257,435               -           (45,232)                   -           -               -       212,203

	 	   Company
      Investment in subsidiaries        1,939,011                 -                  -           (108,890)           -               - 1,830,121
      Revaluation reserve                    55,246               -                  -            (55,246)           -               -               -
      Retained earnings/
        (accumulated loss)                   46,101               -                  -            (53,644)           -               -        (7,543)

	 	   At	31	January	2006
                                                                                                                                                           ANNUAL REPORT 2007


      Group
      Property, plant and equipment 765,856                       -                  -                   -       (254)       (218,525)       547,077
      Investment property                  -                      -                  -                   -           -         218,525       218,525
      Intangible assets                    -                      -                  -                   -         254               -           254
      Foreign exchange difference
        recognised in equity               -                      -             53,570                   -           -               -    53,570
      Retained profits               298,296                      -           (53,570)                   -           -               - 244,726
      Total equity                 1,781,321                  7,462                  -                   -           -               - 1,788,783

	 	   Company
      Investment in subsidiaries        1,146,071                 -                  -           (108,890)           -               - 1,037,181
      Revaluation reserve                  51,440                 -                  -            (51,440)           -               -         -
      Retained earnings                    84,899                 -                  -            (57,450)           -               -    27,449




                                                                                                                  TA ENTERPRISE BERHAD
                                                                                                                                             (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                                                                                                                     	
                      3.1	 Changes	 in	 Accounting	 Policies,	 Effects	 and	 Changes	 in	 Comparatives	 Arising	 from	
                      	 	 Adoption	of	New	and	Revised	FRSs	(cont’d)

                             (j)	 Summary	of	effects	and	changes	arising	from	adoption	of	new	and	revised	FRSs (cont’d)

                      	 	 	 	 (iii)	 Restatement	of	comparatives	 (cont’d)

                                                  Previously	stated                  	             	 ncrease/(Decrease)	 	
                                                                                                   I                                        	 Restated
                      	 	    	 	   	 		    			                    		 FRS	101		 	FRS	121		 	FRS	127		 	FRS	138		                           	Other		
                      Description	of	change	                      					Note	3.1(d)		 	Note	3.1(e)		 	Note	3.1(f)		 	Note	3.1(g)			Reclassification		    	
                      	 	    	 	   	 			   		               RM’000		 	RM’000		 	RM’000		 	RM’000		 	RM’000		                            	RM’000	 	RM’000	

                      For	the	year	ended	31	January	2006
                      Group

                      Foreign exchange gain                  15,827              -       (8,338)              -           -                -      7,489
                      Operating profit                      109,436              -       (8,338)              -           -                -   101,098
                      Profit before tax                      97,842              -       (8,338)              -           -                -     89,504
                      Profit after taxation                  89,046              -       (8,338)              -           -                -     80,708
                      Profit for the year attributable to
                        equity holders of the parent         88,686              -       (8,338)              -           -                -     80,348
                      Earnings per share:
                        - basic and diluted                     6.68             -        (0.63)              -           -                -       6.05

                      Company

                      Other expenses                        (37,396)             -             -        (3,806)           -              75    (41,127)
                      Operating profit                       98,652              -             -        (3,806)           -                -     94,846
                      Profit before tax                      97,629              -             -        (3,806)           -                -     93,823
                      Profit after taxation
                        and for the year                     86,623              -             -        (3,806)           -                -     82,817
 ANNUAL REPORT 2007
072




                      TA ENTERPRISE BERHAD
                      (194867-M)
3.2	 Changes	in	Estimates
	   The revised FRS 116 Property, Plant and Equipment and FRS 138 Intangible assets require the review of the residual
    value and remaining useful life of an item of property, plant and equipment and intangible assets with finite life at
    least at each financial year end. The Group has revised the residual values of motor vehicles only. It has also revised
    the useful life of a hotel building from 50 years to 70 years, with effect from 1 February 2006. In view of the rate of
    technology changes, the Group revised the estimated useful lives of certain computer equipment with effect from
    1 July 2006 as summarised below:

	   In	respect	of	computer	equipment		          	              	                Revised	remaining			                       		
	   and	intangible	assets	                      	              	                useful	economic	lives		                    		

    Acquired more than 3 years ago                                              Nil
    Acquired less than 3 years                                                  36 months less months already
                                                                                    depreciated up to 1 July 2006
    New assets purchased since 1 July 2006                                      36 months

    The revisions were accounted for prospectively as a change in accounting estimates and as a result, the depreciation
    charges of the Group and the Company for the current financial year have been increased by RM1,118,766 and
    RM44,577, respectively, whilst the amortisation charges of the Group for the current financial year have been
    increased by RM143,000.

3.3	 Significant	Accounting	Estimates	and	Judgements	
    (a)	 	   Critical	Judgements	Made	in	Applying	Accounting	Policies

             The following are the judgements made by management in the process of applying the Group’s accounting
             policies that have the most significant effect on the amounts recognised in the financial statements. The
             judgements are made based on historical knowledge and best available current information.

             (i)	 Classification	between	investment	properties	and	property,	plant	and	equipment
                  The Group has developed certain criteria based on FRS 140 in making judgement 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 use in the production or supply of goods or services or for administrative
                 purposes. If the portion for internal use is more than an insignificant portion of the entire property,
                 such properties would be classified as Property, Plant and Equipment. Such judgement is made on an
                                                                                                                                ANNUAL REPORT 2007


                 individual property basis.

             (ii)	 Classification	of	computer	software
                   The Group has developed the following criteria to identify computer software to be classified as
                   property, plant or equipment or intangible asset:

                 •   software that is embedded in computer-controlled equipment, including operating system that
                     cannot operate without that specific software is an integral part of the related hardware and is
                     treated as property, plant and equipment;

                 •   application software that is being used on a computer is generally easily replaced and is not an
                     integral part of the related hardware and is treated as intangible asset.




                                                                                              TA ENTERPRISE BERHAD
                                                                                                                  (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      3.3	 Significant	Accounting	Estimates	and	Judgements	(cont’d)

                      	      (b)		     Key	Sources	of	Estimation	Uncertainty

                                       The key assumptions 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 discussed below:

                                       (i)	 Depreciation	and	residual	values	of	property,	plant	and	equipment	and	intangible	assets
                                            Certain assets of the Group, e.g. renovation, computers, office equipment, electrical installations and
                                            motor vehicles may have a historical usage of more than their current estimate of useful economic
                                            lives. Nonetheless, the directors are of the opinion that the current estimates are reflective of the future
                                            expected usage in view of the likelihood of technology changes, depletion through regular usage,
                                            downward pressure on secondary market value of used motor vehicles, etc.

                                       (ii)	 Impairment	of	property,	plant	and	equipment
                                             The Group carried out the impairment test based on a variety of estimation for the purpose of
                                             determining the fair value and value-in-use of the property, plant and equipment. Estimating the
                                             value-in-use requires the Group to make an estimate of the expected future cash flows from the asset
                                             and also to choose a suitable discount rate in order to calculate the present value of those cash flows.
                                             Expected future cash flows are compared to the historical track record for reasonableness. Discount
                                             rate is based on the Group’s average cost of fund.

                      	      	     	   (iii)	 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 determined by the proportion that
                                              property development costs incurred for work performed to date bear to the estimated total property
                                              development costs.

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

                      	      	     	   (iv)	 Deferred	tax	assets
                                             Deferred tax assets are recognised for all unused tax losses and unabsorbed capital allowances to the
                                             extent that it is probable that taxable profit will be available against which the losses and capital
                                             allowances can be utilised. Significant management judgement is required to determine the amount
 ANNUAL REPORT 2007




                                             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 total carrying value of recognised tax losses
                                             and capital allowances of the Group was RM1,271,000 (2006: RM2,567,000) and the unrecognised tax
                                             losses and capital allowances of the Group was RM424,201,000 (2006: RM350,295,000).

                                   	   (v)	 Provision	for	doubtful	debts	on	financial	receivables	
                      	      	     	   	    The Group maintains a provision for doubtful accounts representing management’s estimate of the
                                            amount of asset impairment in its financial receivables portfolio. The Group determines the provision
                                            based on on-going review and evaluation performed whether the specific debts are considered
                                            doubtful or have been classified as non-performing and taking into consideration the values of any
074




                                            collaterals held. Certain collaterals pledged are properties which are not readily quoted in the market,
                                            requires the Group to exercise judgement and to perform valuation on them.




                      TA ENTERPRISE BERHAD
                      (194867-M)
4.		 PROPERTY,	PLANT	AND	EQUIPMENT
                                                                                                                  Office
	   	   	 	 	 	      		                                            	               	 Furniture		           	 equipment		                	
	   	   Group	 		    	                                   *Land	and			     Lifts	and			       and		   Motor	         and			              	
	   	   		 	 	 	     	                                    buildings		 	Renovations	    	fittings		 vehicles		 	computers		         Total	
	   	   		 	 	 	     	                                      RM’000		       RM’000		 	RM’000		 	RM’000		          RM’000		        RM’000	


        At	31	January	2007
        Cost
	 	     At 1 February 2006 as previously stated             923,361         88,926        9,126       6,499       89,320        1,117,232
        Less: reclassified to investment
          property (Note 5)                               (301,495)               -           -           -             -       (301,495)
        Less: reclassified to intangible assets                    -              -           -           -        (331)            (331)


        At 1 February 2006 as restated                      621,866         88,926        9,126       6,499       88,989         815,406
        Effects of foreign exchange translation             (21,549)        (2,124)        (32)           -       (1,821)        (25,526)
        Reclassified from deposits paid in prior years          140               -           -           -             -             140
        Additions                                             1,144          4,304         235         613         2,899            9,195
        Write-offs                                                 -              -       (110)         (5)       (1,790)          (1,905)
        Disposals                                                  -              -        (11)       (377)        (472)            (860)
        Cost of lifts aggregated with building
          cost reclassified                                  (2,770)         2,770            -           -             -                -
        Reclassified as held for sale (Note 21)             (61,723)              -           -           -             -        (61,723)

        At 31 January 2007                                  537,108         93,876        9,208       6,730       87,805         734,727


        Accumulated	Depreciation	and		                                 	              	           	           	             	                		
	 	     Provision	for	Impairment	Losses

        At 1 February 2006 as previously stated             197,972         58,483        7,086       5,139       82,696         351,376
        Less: reclassified to investment
          property (Note 5)                                 (82,970)              -           -           -             -        (82,970)
        Less: reclassified to intangible assets                    -              -           -           -          (77)             (77)

        At 1 February 2006 as restated                      115,002         58,483        7,086       5,139       82,619         268,329
        Effects of foreign exchange translation              (1,853)        (1,292)        (31)           -       (1,648)          (4,824)
        Depreciation for the year                             8,612          7,924         276         253         4,167           21,232
                                                                                                                                                  ANNUAL REPORT 2007


        Reversal of impairment loss                          (5,345)              -           -           -             -          (5,345)
        Other write-offs                                           -              -       (109)         (3)       (1,808)          (1,920)
        Disposals                                                  -              -        (11)       (343)        (453)            (807)
        Accumulated depreciation of lifts aggregated
          with building costs reclassified                    (424)            424            -           -             -                -
        Reclassified as held for sale (Note 21)             (29,931)              -           -           -             -        (29,931)

        At 31 January 2007                                   86,061         65,539        7,211       5,046       82,877         246,734

        Net	Book	Value
                                                                                                                                                  075

        At 31 January 2007                                  451,047         28,337        1,997       1,684        4,928         487,993




                                                                                                        TA ENTERPRISE BERHAD
                                                                                                                                 (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      4.		 PROPERTY,	PLANT	AND	EQUIPMENT	(cont’d)
                                                                                                                                          Office
                      	   	   	 	 	 	      		                                              	               	 Furniture		           	 equipment		                  	
                      	   	   Group	 		    	                                     *Land	and			     Lifts	and			       and		   Motor	         and			                	
                      	   	   		 	 	 	     	                                      buildings		 	Renovations	    	fittings		 vehicles		 	computers		           Total	
                      	   	   		 	 	 	     	                                        RM’000		       RM’000		 	RM’000		 	RM’000		          RM’000		          RM’000	


                              At	31	January	2006
                              Cost
                      	 	     At 1 February 2005 as previously stated               952,742         87,601        7,649        7,863        88,412        1,144,267
                              Less: reclassified to investment
                                property (Note 5)                                 (282,926)               -           -             -             -       (282,926)
                              Less: reclassified to intangible assets (Note 7)             -              -           -             -        (331)            (331)


                              At 1 February 2005 as restated                        669,816         87,601        7,649        7,863        88,081         861,010
                              Effects of foreign exchange translation
                                 as restated                                        (14,266)        (4,123)        312         (198)        (1,617)        (19,892)
                              Additions                                               2,040          5,470        1,168          207         2,701          11,586
                              Written-off in conjunction with refurbishment          (5,145)              -           -             -             -         (5,145)
                              Other write-offs                                             -              -         (3)        (358)           (41)           (402)
                              Disposals                                             (30,579)           (22)           -       (1,015)        (135)         (31,751)


                              At 31 January 2006                                    621,866         88,926        9,126        6,499        88,989         815,406


                      	 	     Accumulated	Depreciation	and		                                  	               	           	             	             	
                      	 	     Provision	for	Impairment	Losses	                                	               	           	             	             	               		


                              At 1 February 2005 as previously stated               184,955         55,994        6,408        5,590        76,865         329,812
                              Less: reclassified to investment
                                property (Note 5)                                   (71,549)              -           -             -             -        (71,549)
                              Less: reclassified to intangible assets                      -              -           -             -          (18)            (18)


                              At 1 February 2005 as restated                        113,406         55,994        6,408        5,590        76,847         258,245
                              Effects of foreign exchange translation
                                 as restated                                         (2,644)        (4,128)        247         (195)         (328)          (7,048)
                              Depreciation for the year as restated                  11,096          6,636         432           783         6,271          25,218
                              Written-off in conjunction with refurbishment           (789)               -           -             -             -           (789)
 ANNUAL REPORT 2007




                              Other write-offs                                             -              -         (1)        (137)           (40)           178)
                              Disposals                                              (1,312)           (19)           -        (902)         (131)          (2,364)
                              Provision for impairment loss                             499               -           -             -             -            499
                              Reversal of impairment loss                            (5,254)              -           -             -             -         (5,254)


                              At 31 January 2006                                    115,002         58,483        7,086        5,139        82,619         268,329


                      	 	     Net	Book	Value

                              At 31 January 2006                                    506,864         30,443        2,040        1,360         6,370         547,077
076




                      TA ENTERPRISE BERHAD
                      (194867-M)
4.		 PROPERTY,	PLANT	AND	EQUIPMENT	(cont’d)
                                                                                             Office
	   	   	 	 	 	      		                        	              	 Furniture		           	 equipment		            	
	   	   Company		    	               *Land	and			             			       and		   Motor	         and			          	
	   	   		 	 	 	     	                buildings		 	Renovations	   	fittings		 vehicles		 	computers		     Total	
	   	   		 	 	 	     	                  RM’000		       RM’000		 	RM’000		 	RM’000		         RM’000		    RM’000	


        31	January	2007
        Cost


	 	     At 1 February 2006               20,380          1,403       2,451        922           331       25,487
        Additions                             -             58          13        225            72          368
        Transfer from subsidiaries            -              -           -         77             -           77


        At 31 January 2007               20,380          1,461       2,464      1,224           403       25,932


        Accumulated	Depreciation


        At 1 February 2006                3,499            923       2,444        369           126        7,361
        Charge for the year                 408            164           5         43           170          790


        At 31 January 2007                3,907          1,087       2,449        412           296        8,151


        Net	Book	Value


        At 31 January 2007               16,473            374          15        812           107       17,781



        31	January	2006
        Cost


        At 1 February 2005               20,380          1,289       2,449      1,280           251       25,649
        Additions                             -            114           2          -            80          196
        Write-offs                            -              -           -      (358)             -        (358)


        At 31 January 2006               20,380          1,403       2,451        922           331       25,487


        Accumulated	Depreciation
                                                                                                                     ANNUAL REPORT 2007



        At 1 February 2005                3,091            771       2,442         256           63        6,623
        Charge for the year                 408            152           2         250           63          875
        Write-offs                            -              -           -       (137)            -        (137)


        At 31 January 2006                3,499            923       2,444        369           126        7,361


        Net	Book	Value

        At 31 January 2006               16,881            480           7        553           205       18,126




                                                                                   TA ENTERPRISE BERHAD
                                                                                                        (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      4.		 PROPERTY,	PLANT	AND	EQUIPMENT	(cont’d)

                             * Land and buildings comprise:
                             Group		         		                               Freehold		       ^	Long	term		           	     Buildings-	            		
                      	 	    	 	 	 	         	                                    land		   	leasehold	land		 	Buildings		 	in-	progress		     	Total	
                      	 	    		 	 	 	        	                                 RM’000		            	RM’000	    	RM’000		        	RM’000		   	RM’000	


                             At	31	January	2007
                             Cost


                      	 	    At 1 February 2006 as previously stated           106,731               3,560      813,070                -     923,361
                             Less: reclassified to investment
                                   property (Note 5)                           (57,111)                  -     (244,384)               -    (301,495)


                             At 1 February 2006 as restated                     49,620               3,560      568,686                -     621,866
                             Effects of foreign exchange translation            (4,047)                  -      (17,502)               -     (21,549)
                             Reclassified from deposits paid in prior years           -                  -             -            140          140
                             Additions                                                -                  -           51           1,093        1,144
                             Reclassification of uncompleted buildings                -                  -       (1,806)          1,806             -
                             Land cost aggregated with building
                                   cost reclassified                            15,316                   -      (15,316)               -            -
                             Cost of lifts aggregated with building
                                   cost reclassified                                  -                  -       (2,770)               -      (2,770)
                             Reclassified as held for sale (Note 21)            (8,677)                  -      (53,046)               -     (61,723)


                             At 31 January 2007                                 52,212               3,560      478,297           3,039      537,108


                             Accumulated	Depreciation	and
                      	 	    Provision	for	Impairment	Losses

                             At 1 February 2006 as previously stated                  -                607      197,365                -     197,972
                             Less: reclassified to investment
                                   property (Note 5)                                  -                  -      (82,970)               -     (82,970)

                             At 1 February 2006 as restated                           -                607      114,395                -     115,002
 ANNUAL REPORT 2007




                             Effects of foreign exchange translation                  -                  -       (1,853)               -      (1,853)
                             Depreciation for the year                                -                 71        8,541                -       8,612
                             Reversal of impairment loss                              -                  -       (5,345)               -      (5,345)
                             Accumulated depreciation of lifts aggregated             -                  -         (424)               -        (424)
                             Reclassified as held for sale (Note 21)                  -                  -      (29,931)               -     (29,931)

                             At 31 January 2007                                       -                678       85,383                -      86,061

                         	   Net	Book	Value

                             At 31 January 2007                                 52,212               2,882      392,914           3,039      451,047
078




                      TA ENTERPRISE BERHAD
                      (194867-M)
4.		 PROPERTY,	PLANT	AND	EQUIPMENT	(cont’d)

      * Land and buildings comprise:
      Group	(cont’d)		                                      	   Freehold		          ^	Long	term		               	            		
	 	   	 	 	 	    	                                          	       land		      	leasehold	land		     	Buildings		      Total	
	 	   		 	 	 	   	                                          	    RM’000		               	RM’000	        	RM’000			    RM’000	


      At	31	January	2006
      Cost


	 	   At 1 February 2005 as previously stated                    113,970                  3,560         835,212        952,742
      Less: reclassified to investment property (Note 5)         (53,594)                      -       (229,332)      (282,926)


      At 1 February 2005 as restated                              60,376                  3,560         605,880        669,816
      Effects of foreign exchange translation as restated         (1,871)                      -        (12,395)       (14,266)
      Additions                                                         -                      -           2,040          2,040
      Written-off in conjunction with refurbishment                     -                      -         (5,145)        (5,145)
      Disposals                                                   (8,885)                      -        (21,694)       (30,579)


      At 31 January 2006                                          49,620                  3,560         568,686        621,866



	 	   Accumulated	Depreciation	and		                        	               	                     	               	              		
	 	   Provision	for	Impairment	Losses	                      	              	                      	               	              		



      At 1 February 2005 as previously stated                           -                   536         184,419        184,955
      Less: reclassified to investment property (Note 5)                -                      -        (71,549)       (71,549)


      At 1 February 2005 as restated                                    -                   536         112,870        113,406
      Effects of foreign exchange translation as restated               -                      -         (2,644)        (2,644)
      Depreciation for the year as restated                             -                    71           11,025        11,096
      Written-off in conjunction with refurbishment                     -                      -           (789)          (789)
      Disposals                                                         -                      -         (1,312)        (1,312)
                                                                                                                                      ANNUAL REPORT 2007


      Provision for impairment loss                                     -                      -            499             499
      Reversal of impairment loss                                       -                      -         (5,254)        (5,254)


      At 31 January 2006                                                -                   607         114,395        115,002



      Net	Book	Value


      At 31 January 2006                                          49,620                  2,953         454,291        506,864




                                                                                                   TA ENTERPRISE BERHAD
                                                                                                                       (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      4.	 PROPERTY,	PLANT	AND	EQUIPMENT	(cont’d)


                             Company		       	       	   	   	   	   		   	   	   	                	    ^Long	term		             	                  	
                      	      	 	 	 	         	       	   	   	   	   	    	   	   	                	      leasehold		            	                  	
                      	      	 	 	 	         	       	   	   	   	   	    	   	   	                	           land		   Buildings	             Total	
                      	      	 	 	 	         	       	   	   	   	   	    	   	   	                	        RM’000	      RM’000	             RM’000	

                             Cost
                             At 1 February 2006/31 January 2007                                               3,300         17,080             20,380

                             Accumulated	Depreciation
                             At 1 February 2006                                                                 567           2,932             3,499
                             Charge for the year                                                                 66             342               408

                             At 31 January 2007                                                                 633           3,274             3,907

                             Net	Book	Value
                             At 31 January 2007                                                               2,667         13,806             16,473



                             Cost
                             At 1 February 2005                                                               3,300         17,080             20,380

                             Accumulated	Depreciation
                             At 1 February 2005                                                                 501           2,590             3,091
                             Charge for the year                                                                 66             342               408

                             At 31 January 2006                                                                 567           2,932             3,499

                             Net	Book	Value
                             At 31 January 2006                                                               2,733         14,148             16,881

                             ^Long term leasehold land has unexpired lease periods between 52 to 73 years


                             (a) The net book values of property, plant and equipment of certain trusts and a subsidiary pledged to financial
                                 institutions for credit facilities granted to but not utilised by certain trusts and subsidiary as referred to in Note
 ANNUAL REPORT 2007




                                 25 are as follows:
                      	      	 	 	 	 	               	 	 	 	 	 	 	           	                  	                  	           2007	             	2006	
                      	      	 	 	 	 	               	 	 	 	 	 	 	           	                  	                  	        RM’000		           RM’000	

                                   Group		
                                   Freehold land                                                                            37,077             38,507
                                   Buildings                                                                               207,426            219,815

                                                                                                                           244,503            258,322
080




                      TA ENTERPRISE BERHAD
                      (194867-M)
4.	 PROPERTY,	PLANT	AND	EQUIPMENT	(cont’d)

    (b) The titles of the freehold buildings acquired by a wholly-owned subsidiary in previous years are in the midst
        of being transferred into that subsidiary’s name pending the splitting of master title deeds. The carrying
        amount of these buildings is RM8,997,000 (2006: RM9,231,000).


    (c) The net book value of a freehold building of a subsidiary pledged to a financial institution for credit facilities
        granted to the Company at the end of the financial year as disclosed in Note 25 is as follows:

	   	   	   	   	   	      	 	 	 	 	 	 	           	                  	                 	           2007	          	2006	
	   	   	   	   	   	      	 	 	 	 	 	 	           	                  	                 	         RM’000		        RM’000	

        Group		
        Freehold land                                                                               15,100         15,100
        Buildings                                                                                  161,024        167,265

                                                                                                   176,124        182,365



    (d) A motor vehicle of the Group with a net book value of RM221,000 was written-off during the previous financial
        year. Insurance claim of RM308,000 was received and recognised as other income during the current
        financial year.


    (e) Reversal of impairment loss of the Group of ZAR10,087,434 (RM5,345,331 equivalent) was made on a freehold
        building situated at 160 Jan Smuts Avenue, Rosebank, Johannesburg, South Africa based on a signed
        Agreement of Sale entered on 6 September 2006 that has become unconditional and was pending completion
        as at the balance sheet date [Note 45(c)(i)].


    (f ) The Group has commenced the replacement of lifts of Menara TA One since the previous financial year and
        had completed this exercise during the current financial year , as part of the refurbishment plan of the building.
        In the previous financial year, costs of lifts capitalised was RM3,303,000 and building costs attributable to lifts
        replaced and written off was RM4,356,000. In tandem with the above, the directors had made a partial reversal
        of impairment loss of RM5,254,000 in the previous financial year based on directors’ valuation as at 31 January
        2006. During the current financial year, the remaining cost of lifts capitalised was RM886,000, and building
                                                                                                                               ANNUAL REPORT 2007



        costs attributable to the lifts replaced and reclassified to the cost of lifts is RM2,770,000.


    (g) The titles of certain properties classified as building-in-progress amounting to RM1,223,000 will only be
        transferred to the Group upon the completion of construction.




                                                                                                 TA ENTERPRISE BERHAD
                                                                                                                  (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      5.	 INVESTMENT	PROPERTY
                                                                                                   Freehold
                      	      	     	   	   	   	   	 	 	 	 	 	 	         	                 	           Land		         Building	            Total	
                      	      	     	   	   	   	   	 	 	 	 	 	 	         	                 	        RM’000	            RM’000	           RM’000	


                             Group
                             Cost
                             At	1	February	2005                                                             -                -                 -
                             Reclassified from property, plant and equipment (Note 4)                  53,594          229,332           282,926
                             Effects of foreign exchange translation                                    3,517           15,052            18,569


                             At	31	January	2006	and	1	February	2006                                   57,111           244,384           301,495
                             Effects of foreign exchange translation                                  (5,154)          (22,053)          (27,207)


                             At	31	January	2007                                                        51,957          222,331           274,288



                             Accumulated	Depreciation	and	Provision	for	Impairment	Losses
                             At	1	February	2005                                                              -               -                 -
                             Reclassified from property, plant and equipment (Note 4)                        -          71,549            71,549
                             Effects of foreign exchange translation                                         -           4,946             4,946
                             Depreciation for the year                                                       -           6,475             6,475


                             At 31 January 2006 and 1 February 2006                                          -          82,970            82,970
                             Effects of foreign exchange translation                                         -          (7,973)           (7,973)
                             Depreciation for the year                                                       -            6,360             6,360


                             At	31	January	2007                                                              -          81,357            81,357

                             Net	Book	Value
                             At 31 January 2007                                                        51,957          140,974           192,931


                             At 31 January 2006                                                        57,111          161,414           218,525
 ANNUAL REPORT 2007




                             Fair	value                                                                                                  519,575


                             The net book values of the freehold land and building are pledged to a financial institution for credit facilities as
                             disclosed in Note 25.


                             The fair value of the investment property as at 31 January 2007 was estimated by the Directors based on an
                             indicative offer received for the investment property and no separate independent valuation was obtained.


                             The direct-operating costs of this revenue-generating investment property is C$6,389,840 (RM20,540,141
082




                             equivalent) (2006: C$6,136,747 or RM19,281,659 equivalent), most of which are recoverable from the tenants.




                      TA ENTERPRISE BERHAD
                      (194867-M)
6.	 LAND	HELD	FOR	PROPERTY	DEVELOPMENT	AND	PROPERTY	DEVELOPMENT	COSTS
	   Group		    	   	       	 	 	 	 	 	 	           	                   	   Freehold		   Leasehold	           	
	   	 	 	      	   	       	 	 	 	 	 	 	           	                   	       land		    Buildings	     Total	
	   	 	 	      	   	       	 	 	 	 	 	 	           	                   	    RM’000	       RM’000	     RM’000	

    (a)	 Land	Held	for	Property	Development

	   	   Year	Ended	31	January	2007
        Cost of land purchased
        At 1 February 2006                                                   93,657            311      93,968
        Reclassified from deposits paid in previous financial year #          12,163             -      12,163
        Additions #                                                         266,686              -     266,686
        Deemed disposal @                                                   (17,278)             -     (17,278)

        At 31 January 2007                                                  355,228            311     355,539

        Development costs *
        At 1 February 2006                                                     5,061             -       5,061
        Additions                                                                957             -         957
        Deemed disposal @                                                      (297)             -       (297)

        At 31 January 2007                                                     5,721             -       5,721

        Accumulated amortisation
        At 1 February 2006                                                         -          (49)         (49)
        Amortisation during the year                                               -           (7)          (7)

        At 31 January 2007                                                         -          (56)         (56)

        Carrying	Amount	at	31	January	2007                                  360,949            255     361,204

        Year	Ended	31	January	2006
        Cost of land purchased
        At 1 February 2005                                                  102,781            311     103,092
        Additions                                                              8,054             -        8,054
        Transfer to property development costs (Note 6(b))                  (17,178)             -     (17,178)

        At 31 January 2006                                                   93,657            311      93,968

        Development costs *
        At 1 February 2005                                                     7,917             -        7,917
                                                                                                                    ANNUAL REPORT 2007


        Additions                                                                124             -          124
        Transfer to property development costs (Note 6(b))                   (2,980)             -      (2,980)

        At 31 January 2006                                                     5,061             -       5,061

        Accumulated amortisation

        At 1 February 2005                                                         -          (42)         (42)
        Amortisation during the year                                               -           (7)          (7)

        At 31 January 2006                                                         -          (49)         (49)

        Carrying	Amount	at	31	January	2006                                   98,718            262      98,980




                                                                                         TA ENTERPRISE BERHAD
                                                                                                       (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      6.	 LAND	HELD	FOR	PROPERTY	DEVELOPMENT	AND	PROPERTY	DEVELOPMENT	COSTS
                      	   (cont’d)

                             (a)	 Land	Held	for	Property	Development (cont’d)

                                   # Inclusive of cash considerations of RM79,657,835 (Note 45(a)(i)), RM109,887,735 (Note 45(a)(ii)), RM22,448,125
                                     (Note 45(a)(iii) and RM58,727,500 (Note 45(a)(iv) and other costs incidental to acquisitions.

                                   @ The cost of land and development costs were accounted for as deemed disposals to a developer, Beringin
                                     Terrace Sdn. Bhd. (“BT”) (see Note 15), in conjunction with the grant of vacant possession of the land by a
                                     subsidiary, TA Properties Sdn. Bhd. (“TAP”) to BT, for their commencement of construction work. Gain from
                                     the disposal of land of RM2,425,000 will be recognised upon the receipt of full payment for the disposal. TAP
                                     is also entitled to a share of development profits in the future, which cannot be presently determined with
                                     certainty.

                                   *    The development costs on land held for development comprise mainly the costs incurred in the preparation
                                       and submission of development plans that are not significant relative to the total estimated property
                                       development costs of the land held for development.

                             (b)	Property	Development	Costs	
                                                                                                                                   Group
                      	      	     	 	 	 	           	 	 	 	 	 	 	          	                	                 	          2007	             	2006	
                      	      	     	 	 	 	           	 	 	 	 	 	 	          	                	                 	        RM’000		           RM’000	
                             	     	
                                   Freehold	land

                                   At 1 February 2006/2005                                                                86,947            71,720
                                   Transfer from Land Held for Property Development                                            -            17,178
                                   Reversal of completed projects                                                       (29,308)            (1,907)
                                   Unsold units transferred to Properties held for resale                                  (199)               (44)

                                   As at 31 January 2007                                                                  57,440            86,947

                                   Development	costs

                                   At 1 February 2006/2005                                                                75,458             35,264
                                   Cost incurred during the financial year                                                59,982             52,698
                                   Transfer from Land Held for Property Development                                            -              2,980
 ANNUAL REPORT 2007




                                   Reversal of completed projects                                                       (81,969)           (15,165)
                                   Unsold units transferred to Properties held for resale                                (1,248)              (319)

                                   As at 31 January 2007                                                                  52,223            75,458

                                   Cumulative	costs	recognised	in	income	statement

                                   At 1 February 2006/2005                                                              (74,775)           (20,087)
                                   Recognised during the year                                                           (49,439)           (71,758)
                                   Reversal of completed projects                                                       111,277              17,070
084




                                   As at 31 January 2007                                                                (12,937)           (74,775)




                      TA ENTERPRISE BERHAD
                      (194867-M)
6.	 LAND	HELD	FOR	PROPERTY	DEVELOPMENT	AND	PROPERTY	DEVELOPMENT	COSTS	
	   (cont’d)

    (b)	Property	Development	Costs		(cont’d)
                                                                              Group
	   	   	 	 	 	       	 	 	 	 	 	 	             	         	   	      2007	             	2006	
	   	   	 	 	 	       	 	 	 	 	 	 	             	         	   	    RM’000		           RM’000	
    	   	
        Accumulated	impairment	losses

        At 1 February 2006/2005                                     (1,000)            (5,300)
        Reversal of impairment losses                                     -              4,300

        As at 31 January 2007                                       (1,000)            (1,000)

        Property	development	costs	at	31	January	2007               95,726             86,630



        Progress	billings	account:	

        Cumulative revenue recognised                               215,013         135,576
        Cumulative progress billings made                         (215,942)       (115,963)

                                                                      (929)            19,613

        Accrued billings in trade receivables (Note 15)               4,285            27,954
        Progress billings in trade payables (Note 27)               (5,214)            (8,341)

                                                                      (929)            19,613




                                                                                                   ANNUAL REPORT 2007




                                                                  TA ENTERPRISE BERHAD
                                                                                      (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      7.	 INTANGIBLE	ASSETS	

                      	      Group		   	   	      	   	   	   	   		   	   	   	   	   Trading	rights	in		           	          	
                      	      	 	 	     	   	      	   	   	   	   	    	   	   	   	 Stock	Exchange	of		             	          	
                      	      	 	 	     	   	      	   	   	   	   	    	   	   	   	 Hong	Kong	Limited			    Software	     Total	
                      	      	 	 	     	   	      	   	   	   	   	    	   	   	   	            RM’000	       RM’000	    RM’000	

                             Cost

                             At 1 February 2006 as previously stated                                   -            -          -
                             Effects of adopting FRS 138 (Note 3.1(g))                               167          331        498

                             At 1 February 2006 as restated                                          167          331        498
                             Additions                                                                 -          380        380

                             At 31 January 2007                                                      167          711        878

                             Accumulated	amortisation

                             At 1 February 2006 as previously stated                                   -            -          -
                             Effects of adopting FRS 138 (Note 3.1(g))                               167           77        244

                             At 1 February 2006 as restated                                          167           77        244
                             Amortisation                                                              -          143        143

                             At 31 January 2007                                                      167          220        387


                      	      Net	carrying	amount

                             At 31 January 2007                                                        -          491        491


                             Cost
                             At 1 February 2005 as previously stated                                   -            -          -
                             Effects of adopting FRS 138 (Note 3.1(g))                               167          331        498

                             At 1 February 2005 as restated and as at 31 January 2006                167          331        498

                             Accumulated	amortisation	
 ANNUAL REPORT 2007




                             At 1 February 2005 as previously stated                                   -            -          -
                             Effects of adopting FRS 138 (Note 3.1(g))                               134           18        152

                             At 1 February 2005 as restated                                          134           18        152
                             Amortisation                                                             33           59         92

                             At 31 January 2006                                                      167           77        244

                             Net	carrying	amount	

                             At 31 January 2006                                                        -          254        254
086




                      TA ENTERPRISE BERHAD
                      (194867-M)
8.	 SUBSIDIARIES	 	
                                                                                                         Company
	   	   	   	   	   	     	 	 	 	 	 	 	           	                  	                     	         2007	       	2006	
	   	   	   	   	   	     	 	 	 	 	 	 	           	                  	                     	       RM’000		    RM’000	

    Unquoted shares:
    At cost                                                                                       1,339,504         1,155,500
    Less: Provision for impairment losses                                                         (115,868)         (118,319)

                                                                                                  1,223,636         1,037,181

                                                                                                                        RM’000	
    Unquoted shares:
    At 1 February 2006                                                                                              1,155,500
    Subscription of 5,442 ordinary shares in TA International Sdn. Bhd. (“TAI”)                                              5
    Subscription of 189,545 6,000% NCRPS in TA Properties Sdn. Bhd. (“TAP”)                                           189,545
    Redemption of 5,442 5,000% NCRPS in TAI                                                                            (5,442)
    Disposal of a former directly-held subsidiary to another subsidiary                                                  (104)

    At 31 January 2007                                                                                              1,339,504

    Provision for impairment losses:

    At 1 February 2006                                                                                              (118,319)
    Recognised in income statement                                                                                      2,348
    Disposal of a subsidiary                                                                                              103

    At 31 January 2007                                                                                              (115,868)



	   Details of the subsidiaries are as follows:                                                                                  	
	   	 	 	 	 	                                                               	
                                                            																							Effective
	   	 	 	 	 	                                                          	
                                                        Country	of										Interest	(%)
	   Name	of	Subsidiaries	                             incorporation	 	2007		 	2006		           Principal	Activities		            	


    TA Centre Berhad                                     Malaysia           100      100       Investment holding
    TA Securities Holdings Berhad                        Malaysia           100      100       Stockbroker and dealer in
                                                                                                                                     ANNUAL REPORT 2007


                                                                                                  securities
    TA Nominees (Tempatan) Sdn. Bhd.                     Malaysia           100      100       Nominee services
    TA Nominees (Asing) Sdn. Bhd.                        Malaysia           100      100       Nominee services
    TASEC Nominees (Tempatan) Sdn. Bhd.                  Malaysia           100      100       Nominee services
    TASEC Nominees (Asing) Sdn. Bhd.                     Malaysia           100      100       Nominee services
    TA Investment Management Berhad                      Malaysia            70       70       Licensed fund manager
        (formerly known as TA Unit Trust                                                          managing unit trust and
        Management Berhad)                                                                        private funds
    TA Muamalah Nominees (Tempatan) Sdn. Bhd.            Malaysia           100      100       Nominee services for Islamic
                                                                                                  broking
    TA Muamalah Nominees (Asing) Sdn. Bhd.               Malaysia           100      100       Nominee services for Islamic
                                                                                                  broking




                                                                                                  TA ENTERPRISE BERHAD
                                                                                                                        (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      8.	 SUBSIDIARIES	(cont’d)	                           	

                             Details of the subsidiaries are as follows:
                      	      	 	 	 	 	                                                               	
                                                                                     																							Effective
                      	      	 	 	 	 	                                                          	
                                                                                 Country	of										Interest	(%)
                      	      Name	of	Subsidiaries	                             incorporation	 	2007		 	2006		           Principal	Activities		            	


                             ** Botly Nominees (Tempatan) Sdn. Bhd.                Malaysia          100      100       Nominee services
                             ** Botly Nominees (Asing) Sdn. Bhd.                   Malaysia          100      100       Nominee services
                             TA Asset Management Sdn. Bhd.                         Malaysia          100      100       Ceased operations as a licensed
                                                                                                                          fund management company
                             ** Menara TA Sdn. Bhd.                                Malaysia          100      100       Property investment and
                                                                                                                          provision of management
                                                                                                                          services
                             ** TA Nominees Sdn. Bhd.                              Malaysia          100      100       Domant
                             ** TA Capital Sdn. Bhd.                               Malaysia          100      100       Dormant
                             ** TA Commodities Sdn. Bhd.                           Malaysia          100      100       Commodities trading
                             TA Futures Sdn. Bhd.                                  Malaysia          70       70        Futures and options broking
                             TA Properties Sdn. Bhd.                               Malaysia          100      100       Investment holding and
                                                                                                                          property development
                             ** TA Ventures Sdn. Bhd.                              Malaysia          100      100       Dormant
                             ** Beta Vector Sdn. Bhd.                              Malaysia          100      100       Property investment and
                                                                                                                          development
                             ** Ample Era Sdn. Bhd.                                Malaysia          100      100       Property investment and
                                                                                                                          development
                             ** Ample Equities Sdn. Bhd.                           Malaysia          100      100       Property investment and
                                                                                                                          development
                             ** Peramah Setia (M) Sdn. Bhd.                        Malaysia          100      100       Dormant
                             Orchard Park Sdn. Bhd.                                Malaysia          100      100       Property investment and
                                                                                                                          development
                             ** Pure Factor Sdn. Bhd.                              Malaysia          100      100       Property investment and
                                                                                                                          development
                             ** Sharp Factor Sdn. Bhd.                             Malaysia          100      100       Property investment and
                                                                                                                          development
                             ** Factor Synergy Sdn. Bhd.                           Malaysia          100      100       Property investment and
                                                                                                                          development
                             ** TA Project Management Sdn. Bhd.                    Malaysia          100      51        Project management
                             Binaprestij Maju Sdn. Bhd.                            Malaysia           51      51        General construction
                             ** TA Binaprestij Sdn. Bhd.                           Malaysia           51      51        Property construction
 ANNUAL REPORT 2007




                                (formerly known as Sistem Kencana Sdn. Bhd.)                                              (formerly dormant)
                             TA First Credit Sdn.Bhd.                              Malaysia          100      100       Lending of monies, leasing,
                                                                                                                          hire purchase and property
                                                                                                                          development
                             ** TA Property Management Sdn. Bhd                    Malaysia          100      100       Property management
                             Cosmic Legion Sdn. Bhd.                               Malaysia          100      100       Investment holding
                             Sanjung Padu (M) Sdn. Bhd.                            Malaysia          100      100       Property investment
                             Parallel Legion Sdn. Bhd.                             Malaysia          100      100       Investment holding
                             Fine Legion Sdn. Bhd.                                 Malaysia          100      100       Investment holding
                             ** ERF Properties Sdn. Bhd.                           Malaysia          100      100       Dormant
                             ** TA Properties (Sarawak) Sdn. Bhd.                  Malaysia          100      100       Investment holding and
088




                                                                                                                          property investment




                      TA ENTERPRISE BERHAD
                      (194867-M)
8.	 SUBSIDIARIES	(cont’d)	                      	

    Details of the subsidiaries are as follows:                                                                                             	
	   	 	 	 	 	                                   																	         																	Effective
	   	 	 	 	 	                                   Country	of	           																		Interest	(%)
	   Name	of	Subsidiaries	                       incorporation	                        	2007		 	2006		   Principal	Activities		              	



    ** # Star Winners Sdn. Bhd.                 Malaysia                          100          -        Property investment and
                                                                                                          development
    TA International Sdn. Bhd.                  Malaysia                          100        100        Investment holding and
                                                                                                          management services
    ** TA Gemilang Trading Sdn. Bhd.            Malaysia                          100        100        Investment holding
        (formerly known as
        Power Launch Sdn. Bhd.)
    ** TA Dotcom Sdn. Bhd.                      Malaysia                          100        100        Dormant (formerly marketing
                                                                                                          and provision of information
                                                                                                          technology related goods
                                                                                                          and services)
    Astra Dinamik Sdn. Bhd.                     Malaysia                          100        100        Property investment and
                                                                                                          development
    Indo Aman Bina Sdn. Bhd.                    Malaysia                          100        100        Property investment and
                                                                                                          development
    * ## Winner Star Group Limited              Hong Kong                         100         -         Dormant
    ** TA Securities (HK) Limited               Hong Kong                         100        100        Stockbroker and dealer in
                                                                                                          securities
    * TA International Investment Limited       Hong Kong                         100        100        Investment holding
    * Ace Fit International Limited             Hong Kong                         100        100        Property investment
    ** ^^ TA Ace Fit Investment                 The Rep. of China                 100          -        Dormant
        Management (Kunming) Co. Ltd.
    ** TA Financial Services Pty. Ltd.          Australia                         100        100        Investment holding
    ** TA Ausfinance Limited                    Australia                         100        100        Share investment
    ** Bold Holdings Pty. Ltd.                  Australia                          60         60        Management services
    **Wales House Nominees Pty. Ltd.            Australia                         100        100        Trusteeship
    ** Wales House Hotel Ltd.                   Australia                         100        100        Hotel management services
    TA Antarabangsa Limited                     The British Virgin Islands        100        100        Investment holding and
                                                                                                          provision of funding facilities
    ** TA Antarabangsa                          The British Virgin Islands        100        100        Dormant
        Development Ltd.
                                                                                                                                                ANNUAL REPORT 2007


    ** TA Property Development                  The Rep. of the Philippines 99.99           99.99       Dormant
        (Philippines), Inc.
    ** Philippine TA Securities, Inc.           The Rep. of the Philippines 99.99           99.99       Stockbroker and dealer in
                                                                                                        securities (currently under
                                                                                                        voluntary suspension)
    ** TA Investment Holdings                   The Rep. of South Africa          100        100        Investment holding
        South Africa Limited
    ** TA Antarabangsa Finance                  The Rep. of South Africa          100        100        Ceased operations as licensed
         South Africa Limited                                                                             bank pursuant to its
                                                                                                          deregistration on 5 April 2002
    ** TA Centre (Proprietary) Ltd.             The Rep. of South Africa          100        100        Property investment
    ** Yorcom No. 13 (Pty) Ltd.                 The Rep. of South Africa          100        100        Dormant




                                                                                                           TA ENTERPRISE BERHAD
                                                                                                                                 (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      8.	 SUBSIDIARIES	(cont’d)	 	


                      	      	 	 	 	 	                                                       	
                                                                             																											Effective
                      	      	 	 	 	 	                                                  	
                                                                         Country	of														Interest	(%)
                      	      Name	of	Subsidiaries	                     incorporation	               	2007		 	2006		   Principal	Activities		    	



                             ** TA Development Lanka (Pvt) Ltd.           Sri Lanka             100        100        Dormant

                             * Indian Ocean Lanka (Pvt) Ltd.              Sri Lanka             100        100        Investment holding

                             ** TA Properties (Canada) Ltd.                Canada               100        100        Property investment

                             ** TA Management Ltd.                         Canada               100        100        Management services

                             ** TA Development One (Canada) Ltd.           Canada               100        100        Trusteeship

                             ** Empress II Holdings Limited                Canada               100        100        Dormant

                             ** TA Management (Empress II) Ltd.            Canada               100        100        Dormant (formerly
                                                                                                                       management services)

                             In addition, the Group is the beneficiary of the following wholly-owned trusts where the trusts’ financial
                             statements have been included into the Group’s financial statements using the line-by-line reporting format:


                      	      Name	of	Trust	                                     	                  	          	       	 Country	of	Inception	

                      	      ** TA Properties (Canada) Trust                                                            Antigua

                             ** TA Development One (Canada) Trust                                                       Canada

                             ** TA Development One (Barbados) Trust                                                     Barbados

                             ** Wales House Trust                                                                       Australia

                             ** Empress Holdings Trust                                                                  Barbados

                             ** Empress Investments Trust                                                               Barbados
 ANNUAL REPORT 2007
090




                      TA ENTERPRISE BERHAD
                      (194867-M)
8.	 SUBSIDIARIES	(cont’d)

    *   Audited by affiliate of Ernst & Young

    ** Audited by firms of auditors other than Ernst & Young

    # On 18 August 2006, the Company acquired 2 ordinary shares of RM1 each representing 100% equity interest in
      Star Winners Sdn. Bhd. for a total consideration of RM2.

    ## On 22 September 2006, TA International Sdn. Bhd., a wholly subsidiary of the Company acquired 1 ordinary
       share of HKD1 representing 100% equity interest in Winner Star Group Limited, a foreign subsidiary, for a total
       cash consideration of HKD1.

    ^^ On 21 June 2006, the Company obtained approval from Wu Hua Local Authorities of Kunming, Yunnan for the
       establishment of TA Ace Fit Investment Management (Kunming) Co. Ltd., a wholly-owned foreign enterprise
       in Kunming, China. TA Ace Fit Investment Management (Kunming) Co. Ltd. was incorporated in 7 July 2006 with
       a registered capital of RMB4,000,000 and is wholly-owned by Ace-Fit International Limited, a wholly-owned
       subsidiary of TA Properties Sdn. Bhd., which is in turn, a wholly-owned subsidiary of the Company.


    (i) Without qualifying their opinion, the auditors of a 51%-owned subsidiary, Binaprestij Maju Sdn. Bhd., in their
        report have drawn attention to the subsidiary’s ability to continue as a going concern. The subsidiary’s financial
        statements have been prepared on a going concern basis. The ability of the subsidiary to continue in business
        is dependent on its own ability to generate future funds and profitable operations.


    (ii) Subscription and redemption of shares in existing subsidiaries
        During the year, the Company subscribed for 5,442 ordinary shares of RM1 each in its subsidiary, TA International
        Sdn Bhd (“TAI”), a company incorporated in Malaysia for a total cash consideration of RM5,442. TAI also redeemed
        5,442 5,000% preference shares of RM1.00 each for a total cash consideration of RM5,442,000 from the
        Company.


        The Company also subscribed for 189,545 shares of 6,000% non cumulative redeemable preference shares of
        RM1 each at a premium of RM999 in its subsidiary, TA Properties Sdn. Bhd., a company incorporated in Malaysia,
        for a total cash consideration of RM189,545,000.
                                                                                                                              ANNUAL REPORT 2007



    (iii) Bonus shares issued by a subsidiary
        During the year, the Company received 37,000,000 bonus shares of RM1 each on the basis of 1 new ordinary
        share for every 5 existing ordinary shares held in its subsidiary, TA Centre Berhad, a company incorporated
        in Malaysia.




                                                                                             TA ENTERPRISE BERHAD
                                                                                                                 (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      9.	 ASSOCIATED	COMPANIES
                      	      	     	   	   	   	      	    	    	    	        	                 Group	     	                      	Company
                      	      	     	   	   	   	      	    	    	    	        	     2007		             2006		                 	2007		       2006	
                      	      	     	   	   	   	      	    	    	    	        	   RM’000		           RM’000	                 RM’000		     RM’000	

                             Unquoted shares at cost                                11,899               11,899                   325                325
                             Share of post-acquisition profits less losses           3,332                3,330                     -                  -
                             Less: Provision for impairment losses                       -                    -                 (112)              (135)

                                                                                    15,231               15,229                  213                190

                             The summarised financial information of the associates are as follows:

                                                                                                                               2007		           	2006	
                      	      	     	   	   	   	      	    	    	    	        	             	                     	          RM’000	           RM’000	

                             Assets	and	liabilities	

                             Current assets                                                                                    3,145              3,451
                             Non-current assets                                                                               98,884             98,262

                             Total assets                                                                                    102,029            101,713

                             Current liabilities/total liabilities                                                            (7,747)            (7,421)

                             Results
                             Revenue                                                                                          16,859             12,066
                             Loss for the year                                                                                   (27)             (414)



                             The details of the associated companies, all of which are incorporated in Malaysia, are as follows:

                      	      	 	 	 	 	          	          	             Effective	Interest	(%)	         Financial	   		
                      	      Name	of	Associates		          	             	 2007		     2006		             Year	End		   	Principal	Activities	

                             Held	by	the	Company:
                             * TA Travel Sdn. Bhd.                         25          25           31 December       Tour and travel agency
 ANNUAL REPORT 2007




                             Held	by	subsidiaries:
                             * Dinar Ehsan Sdn. Bhd.                       25          25            31 January       Investment holding
                             * Panca Resmi Sdn. Bhd.                       25          25            31 January       Property investment and
                                                                                                                        property investment holding
                             ** TFC Nominees (Asing) Sdn. Bhd.             50          50            31 January       Dormant


                             *The results of the associated companies have been equity accounted for based on the management financial statements for the
                             relevant period.

                             **The results of the associated companies have been equity accounted for based on the audited financial statements for
092




                             the relevant period.




                      TA ENTERPRISE BERHAD
                      (194867-M)
10.	 OTHER	INVESTMENTS	 	                	   	                	         	              	        	
	   	   	   	   	   	    	    	      	   	   	             Group	       	          	Company
	   	   	   	   	   	    	    	      	   	   	        2007		        2006		     	2007		      2006	
	   	   	   	   	   	    	    	      	   	   	      RM’000		      RM’000	     RM’000		    RM’000	

    At cost:

    1 seat in Philippines Stock Exchange, Inc. (“PSE”) 4,507        4,507           -              -
    1 unit of non-cumulative “A”
        preference share in Bursa Malaysia
        Derivatives Berhad (“BMDB”)                     1,500       1,500           -              -
    1 unit of non-cumulative “C”
        preference share in BMDB                          150         150           -              -
    Quoted securities:
        - In Malaysia                                  28,805      29,830           -              -
        - Outside Malaysia                                  2           4           -              -
    Unquoted shares:
        - In Malaysia                                     490         490         490          490
    Redeemable secured loan stocks (“RSLS”) *               -      39,256           -            -
    Quoted trust units in Malaysia #                      625      14,209           -       12,000
    Unquoted trust units outside Malaysia                   -           -     111,384      111,384
    Unquoted bonds and debt securities
        in Malaysia                                    20,280      38,544      15,156       21,638

                                                      56,359      128,490     127,030      145,512
    Add:
    Accretion of discount on unquoted bonds                 -         179           -            30
    Less:
    Provision for impairment losses
       - on PSE                                      (4,257)       (4,257)          -             -
       - on RSLS                                           -      (39,256)          -             -
       - other quoted investments                   (17,814)      (20,113)          -          (55)
    Amortisation of premium on unquoted
       bonds and debt securities                       (106)          (70)       (32)          (12)
                                                                                                        ANNUAL REPORT 2007


                                                      34,182       64,973     126,998      145,475

    Market/indicative value:
    Quoted securities
    - In Malaysia                                     26,390       14,275           -              -
    - Outside Malaysia                                     -            2           -              -
    Unquoted bonds and debt
         securities in Malaysia                       20,543       39,333      15,488       21,833
    Quoted trust units in Malaysia                       640       14,083           -       12,200




                                                                             TA ENTERPRISE BERHAD
                                                                                           (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      10.	 OTHER	INVESTMENTS	(cont’d)

                             Included in investment in quoted securities in Malaysia of the Group is an amount of RM3,182,000
                             (2006: RM3,747,000) representing an unsold 1,700,000 (2006: 2,000,000) ordinary shares in Bursa Malaysia Berhad
                             previously distributed to subsidiaries of the Group that were participating organisations of Bursa Malaysia Securities
                             Berhad, arising from the demutualisation of the Kuala Lumpur Stock Exchange. These shares were quoted since
                             18 March 2005.

                             * Being RSLS received as part settlement of financial receivables from Idris Hydraulic (Malaysia) Berhad during the prior financial years
                                   and were originally redeemable on 20 November 2005 and thereafter extended to 17 November 2007. Management estimates that
                                   there is a high likelihood that the RSLS may not be recoverable Hence, the RSLS which was fully provided for in prior financial years,
                                   was written off during the financial year.


                             # Included in quoted trust units in Malaysia were unit trust funds managed by a subsidiary totalling RM512,080 (2006: RM14,108,800).


                             Unquoted trust units outside Malaysia of the Company represent investment in 64,510,755 (2006: 64,510,755)
                             trust units of A$1.00 each at par in Wales House Trust (“WHT”), a trust incepted in Australia. This represents 50%
                             interest in WHT while the remaining 50% is held by TA Properties Sdn. Bhd., a wholly-owned subsidiary incorporated
                             in Malaysia. This investment has been eliminated at Group level, upon consolidation, as the financial statements of
                             this trust have been included in the Group’s financial statements.

                      11.	 PROPERTIES	HELD	FOR	RESALE	

                             Included in properties held for resale of the Group are certain titles of the properties amounting to approximately
                             RM68,000 (2006: RM68,000) previously charged to a financial institution for a term loan granted to a subsidiary are
                             in the process of being discharged. The term loan was fully settled in the financial year ended 31 January 2003.

                      12.	 LAND	HELD	FOR	RESALE

                             Included in land held for resale of the Group are certain titles of land amounting to RM7,036,000 (2006: RM7,036,000)
                             that are in the process of being transferred into those respective subsidiaries’ names pending the final settlement
                             of expenses.

                      13.	 INVENTORIES
                      	      	      	   	   	    	       	     	    	     	     	                  	                   	                             Group
 ANNUAL REPORT 2007




                      	      	      	   	   	    	       	     	    	     	     	                  	                   	                    2007		              2006	
                      	      	      	   	   	    	       	     	    	     	     	                  	                   	                  RM’000		            RM’000	

                             At cost:
                             Food and beverages                                                                                                341                  289
                             Consumables                                                                                                       235                  148

                                                                                                                                               576                  437
094




                      TA ENTERPRISE BERHAD
                      (194867-M)
14.	 FINANCIAL	RECEIVABLES	 	                 	                	         	                         		       	
	   	   	   	   	   	     	     	   	    		   	                	         	                    	 Group
	   	   	   	   	   	     	     	   	    	    	                	         	                2007	    	    2006	
	   	   	   	   	   	     	     	   	    	    	                	         	              RM’000		      RM’000	

    Loans and advances                                                                  340,604          307,046
    Loan receivables                                                                    558,624          541,488
    Lease receivables                                                                     1,214            1,310

    Gross financial receivables                                                         900,442          849,844

    Less: Provision for doubtful debts                                                 (345,125)        (363,304)
          Interest-in-suspense                                                         (246,565)        (219,998)

                                                                                       (591,690)        (583,302)

    Net financial receivables                                                           308,752          266,542



	   	   	   	   	   	     	     	   	    		   	                	         	                    	 Group
	   	   	   	   	   	     	     	   	    	    	                	         	                2007	    	    2006	
	   	   	   	   	   	     	     	   	    	    	                	         	              RM’000		      RM’000	

    The movements in provision for doubtful debts are as follows:



    At 1 February                                                                       363,304           533,802
    Provision made during the year                                                         1,093           29,448
    Provision written-back during the year                                              (18,059)         (11,941)
    Provision written-off during the year                                                    (39)       (187,018)
    Exchange differences                                                                 (1,174)            (987)

                                                                                        345,125          363,304



    Provision written-off during the year was in relation to debts which have previously been provided for in the
                                                                                                                      ANNUAL REPORT 2007



    income statement and are now deemed irrecoverable.

    All gross financial receivables are receivable within one year.




                                                                                      TA ENTERPRISE BERHAD
                                                                                                         (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      14.	 FINANCIAL	RECEIVABLES	(cont’d)

                      	      The financial receivables include an amount of RM55,000 (2006: RM1,310,000), representing the total amount due
                             from customers of a foreign former banking subsidiary, net of provision for doubtful debts and interest-in-
                             suspense. The subsidiary was deregistered as a commercial bank in the financial year ended 31 January 2003 and
                             the net financial receivables are expected to be collectible in accordance with the remaining maturity dates in
                             place before the deregistration.

                             The five (2006: five) largest loan receivables, which contributed 45% (2006: 49%) of the net financial receivables,
                             represent the Group’s significant concentration of credit risks, as follows:

                      	      	     	   	   	   	   	    	    	    	   	                   	          Provision
                      	      	     	   	   	   	   	    	    	    	   	                   	                 for		        Interest-		         	
                      	      	     	   	   	   	   	    	    	    	   	                   	          doubtful	                 in-		         	
                      	      	     	   	   	   	   	    	    	    	   	              Gross	             debts	          suspense		        Net	
                      	      	     	   	   	   	   	    	    	    	   	             RM’000	            RM’000	            RM’000		     RM’000	

                             Five largest loan receivables                          171,536            (13,467)           (19,707)     138,362
                             Others                                                 728,906           (331,658)          (226,858)     170,390

                                                                                    900,442           (345,125)          (246,565)     308,752

                             The range of interest rates of financial receivables of the Group are disclosed in Note 47(b).

                      15.	 TRADE	RECEIVABLES                                                                                                	
                      	      	     	   	   	   	   	    	    	    	   	                       	                   	             	Group
                      	      	     	   	   	   	   	    	    	    	   	                       	                   	         2007	 		    2006	
                      	      	     	   	   	   	   	    	    	    	   	                       	                   	       RM’000		    RM’000	

                             Trade receivables from stockbroking subsidiaries:
                             - Due from brokers                                                                           411,584      135,348
                             - Due from clients                                                                           529,902      356,713
                             Due from unit trust funds                                                                     10,374        1,393
                             Accrued billings in respect of property development costs [Note 6(b)]                          4,285       27,954
                             Due from a developer [Note 6(a)]                                                              17,575            -
                             Other trade receivables                                                                       11,275       11,903
 ANNUAL REPORT 2007




                                                                                                                           984,995     533,311
                             Less: Provision for doubtful debts                                                           (34,921)     (26,762)
                                   Interest-in-suspense                                                                  (114,923)     (95,594)

                                                                                                                          835,151      410,955

                             Due from brokers and clients represent amounts receivable from the stockbroking subsidiaries’ margin clients and
                             non-margin clients; and outstanding contracts entered into on behalf of these clients where settlements via the
                             Central Depository System for the Malaysian subsidiary or Central Clearing and Settlement System for the
096




                             Hong Kong subsidiary have yet to be made.




                      TA ENTERPRISE BERHAD
                      (194867-M)
15.	 TRADE	RECEIVABLES	(cont’d)

	   Due from unit trust funds are receivable by a subsidiary that is a manager for unit trust funds and relate to
    management fees receivables and release of trust units receivables.

    Due from a developer, Beringin Terrace Sdn. Bhd., a company in which the son of a director of the Company, Dato’
    Mohamed bin Abid, has interest, relates to the remaining amount receivable from the disposal of property
    [Note 6(a)] . The amount is interest-free and repayable in accordance with the terms of a joint venture agreement.
    Land titles for the property disposed are held by the solicitors pending the full settlement of balance from the
    developer.

    Other trade receivables mainly arise from subsidiaries in futures broking, hotel operations, property investment
    and development.

    The Group has no significant concentration of credit risk from exposures to a single debtor or to groups of debtors
    within its trade receivables. The trade credit term for non-margin clients for the Malaysian stockbroking subsidiary
    is 3 market days in accordance with the Bursa Malaysia Securities Berhad Fixed Delivery and Settlement System
    (“FDSS”) trading rule whilst for the overseas stockbroking subsidiary, the trade credit term is 2 market days. The trade
    credit terms for margin clients for the Malaysian stockbroking subsidiaries are set within standard margin
    agreements. Release of trust units receivable from unit trust funds has a trade credit term of not exceeding 10 days
    from the date of release. The Group’s normal trade credit terms for other trade receivables are assessed and
    approved on a case-by-case basis.

    The range of interest rates on interest-bearing trade receivables of the Group are disclosed in Note 47(b).

16.	 OTHER	RECEIVABLES
        	   	   	   	     	    	   	    	     	                           Group	     	                  Company
	   	   	   	   	   	     	    	   	    	     	                       2007	      2006	               2007		     	2006	
	   	   	   	   	   	     	    	   	    	     	                     RM’000	    RM’000	             RM’000	    RM’000	


    Deposits relating to upgrading of lifts in property                     -           369               -                -
    Deposits for acquisition of land held for development              1,064         12,303               -                -
    Deposit for sharing of costs with other
       property developer                                                   -         1,860               -                -
    Other deposits                                                     2,296          1,569              57              32
                                                                                                                                ANNUAL REPORT 2007



    Retention monies paid by housebuyers to stakeholder                7,161          2,266               -                -
    Prepayment of stamp duties and other costs
       incidental to acquisition of property                                -         5,966               -                -
    Other prepayments                                                  5,589          5,479               -                -
    Deferred leasing and financing costs 1                           16,342          19,257               -                -


    Balance carried forward                                          32,452          49,069              57              32




                                                                                               TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      16.	 OTHER	RECEIVABLES	(cont’d)
                                   	   	   	   	   	   	   	   	     	                          Group	     	                 Company
                      	      	     	   	   	   	   	   	   	   	     	                      2007	      2006	              2007		     	2006	
                      	      	     	   	   	   	   	   	   	   	     	                    RM’000	    RM’000	            RM’000	    RM’000	


                             Balance brought forward                                        32,452         49,069            57             32
                             Amount with derivative clearing house 2                        69,016         15,058             -              -
                             Club membership                                                   233            345             -             18
                             Receivable from Employees’ Provident Fund 3                     3,615          2,205             -              -
                             Sundry receivables 4                                            6,390          5,270           371            356

                             Balance brought forward                                      111,706          71,947           428            406
                             Less : Provision for doubtful debts                           (3,558)         (3,551)            -               -
                                   Accumulated amortisation of club membership                   -             (2)            -             (2)

                                                                                          108,148          68,394           428            404

                             1. Deferred leasing costs relate to tenant inducements and leasing commissions prepaid by a subsidiary that are
                                deferred and amortised over the respective terms of the lease. Deferred financing costs relate to prepaid
                                amounts on a mortgage loan in a trust of which the Group has interest and are amortised over the term of
                                the loan.

                             2. The amount with derivative clearing house represents unsegregated clearing accounts, security deposits
                                for Kuala Lumpur Composite Index Futures (“FKLI”) , Crude Palm Oil Futures (“FCPO”) and Ethylene Over-The-
                                Counter contracts and clearing funds for FKLI and FCPO placed by a subsidiary licensed to carry on derivatives
                                broking business in Malaysia, which is also a clearing member. The amount is calculated by the clearing house
                                in accordance with its Business Rules with reference to open positions of all derivative contracts where the
                                subsidiary is a party in relation to the other clearing members. These amounts are interest bearing, with
                                weighted average rate of interest earned on unsegregated clearing accounts of 1.38% (2006: 0.74%) per
                                annum, 1% (2006: 1%) per annum on the security deposits and 1% to 1.38% (2006: 0.74% to 1%) per annum
                                on the clearing funds. The subsidiary relies on the clearing house to monitor the creditworthiness of other
                                clearing members via its financial and operational requirements for minimum membership standards.

                             3. The amount receivable from Employees’ Provident Fund arose from the sales of trust units by a subsidiary under
                                the Kumpulan Wang Simpanan Pekerja Members’ Investment Schemes.
 ANNUAL REPORT 2007




                             4. Included in sundry receivables of the Group is an amount of RM3,312,000 (2006: RM3,312,000) which relates to
                                advances made to a third party for the purchase of investments in the previous financial years. The amount is
                                deemed doubtful as it is currently under litigation and has been fully provided for in previous financial years.

                             The Group and the Company have no significant concentration of credit risk that may arise from exposures to a
                             single debtor or to groups of debtors within its other receivables.
098




                      TA ENTERPRISE BERHAD
                      (194867-M)
17.	 DUE	FROM	SUBSIDIARIES
        	   	   	   	     	    	   	     	   	                                 	           	          Company
	   	   	   	   	   	     	    	   	     	   	                             	               	       2007		     	2006	
	   	   	   	   	   	     	    	   	     	   	                             	               	     RM’000	    RM’000	

    Subordinated loan to a subsidiary                                                             13,000           7,000
    Unsecured advances to subsidiaries                                                           228,192          78,439

                                                                                                 241,192          85,439
    Less: Provision for doubtful debts                                                            (2,026)         (1,571)

                                                                                                 239,166          83,868

    Repayable on demand                                                                          226,166          76,868
    Due more than 1 year and less than 2 years                                                    13,000           7,000

                                                                                                 239,166          83,868

    The amounts due from subsidiaries of the Company are unsecured and interest-free except for an amount of
    RM13,000,000 (2006: RM7,000,000) due from a derivative trading subsidiary that bore interest of 7% (2006: 3% to
    7%) per annum. The subordinated loan has a maximum aggregate principal amount of RM13,000,000, of which the
    full amount was drawndown as at the balance sheet date. The subordinated loan is to be made available for a
    period of 3 years from 6 May 2005 with a scheduled maturity date on 5 May 2008, unless modified by any request
    from Bursa Malaysia Derivatives Berhad. Unsecured advances have no fixed terms of repayment.

    During the current financial year, the Company recovered RM136,218,000 (2006 : Nil) from a subsidiary that
    had been written off as bad debts in the prior financial years (Note 40). The remaining amount owing from the same
    subsidiary that had been written off as bad debts in the prior financial years is RM65,251,000 (2006 : RM201,469,000).

18.	 DUE	FROM/(TO)	ASSOCIATED	COMPANIES
    The amounts due from/(to) associated companies are unsecured, interest-free and have no fixed terms of repayment.

19.	 SHORT	TERM	INVESTMENTS
        	   	   	   	     	    	   	     	   	                                 	           	           Group
	   	   	   	   	   	     	    	   	     	   	                             	               	       2007		    	2006	
	   	   	   	   	   	     	    	   	     	   	                             	               	     RM’000	    RM’000	
                                                                                                                               ANNUAL REPORT 2007



    Quoted securities:
      - In Malaysia                                                                                 6,163           2,495
      - Outside Malaysia                                                                              842             474
    Quoted trust units in Malaysia for sale by a unit trust
      management subsidiary in the ordinary course of business                                        229             155

                                                                                                    7,234           3,124
    Less: Provision for impairment losses                                                           (514)           (403)
                                                                                                                               099

                                                                                                    6,720           2,721




                                                                                               TA ENTERPRISE BERHAD
                                                                                                                  (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      19.	 DUE	FROM	SUBSIDIARIES	(cont’d)
                                   	   	   	   	     	     	   	     	     	                                      	             	          Group
                      	      	     	   	   	   	     	     	   	     	     	                                  	                 	      2007		    	2006	
                      	      	     	   	   	   	     	     	   	     	     	                                  	                 	    RM’000	    RM’000	

                             Market value:
                             Quoted securities:
                                - In Malaysia                                                                                           6,294             2,281
                                - Outside Malaysia                                                                                        457             1,925
                             Quoted trust units in Malaysia                                                                               229               155

                      20.	 CASH	AND	CASH	EQUIVALENTS
                                   	   	   	   	     	     	   	     	     	                             Group	     	                     Company
                      	      	     	   	   	   	     	     	   	     	     	                         2007		     2006	                  2007		     	2006	
                      	      	     	   	   	   	     	     	   	     	     	                       RM’000		   RM’000		               RM’000		   RM’000	

                             Cash and bank balances                                                 118,558            69,326             295               361
                             Fixed deposits and placements with:
                                 - Licensed banks                                                    83,068           171,300                 -         34,000
                                 - Licenced investment banks and other
                                   financial institutions                                           213,909           324,018          10,539          130,269

                             Short term funds carried forward                                       415,535           564,644          10,834          164,630
                             Less:
                             Monies held in trust                                                 (202,050)           (95,343)                -                -
                             Housing Development Accounts                                          (24,493)           (21,915)                -                -
                             Pledged for bank guarantees                                           (14,645)            (6,400)                -                -

                             Cash and cash equivalents                                              174,347           440,986          10,834          164,630

                             Included in the short term funds of the Group are:

                             (i) monies held in trust of approximately RM202,050,000 (2006: RM95,343,000) arising from stockbroking and
                                 derivative trading subsidiaries;

                             (ii) monies held pursuant to Section 7A of the Housing Development (Control and Licensing) Act 1966 of
 ANNUAL REPORT 2007




                                  RM24,493,000 (2006: RM21,915,000) and therefore restricted for use in other operations.

                             (iii) fixed deposits of RM1,000,000 (2006: RM1,400,000) in a stockbroking subsidiary pledged for bank guarantee
                                   facilities granted to the subsidiary. The said facilities were partly utilised as at the financial year end in the subsidiary;

                             (iv) fixed deposits of RM1,000,000 (2006: RM1,000,000) of an investment holding subsidiary pledged to a financial
                                  institution for bank guarantee facilities granted to the subsidiary and a related company. The said facilities were
                                  fully utilised as at the financial year end.

                             (v) fixed deposits in foreign currency of C$999,980 and HK$21,500,000 [in aggregate equivalent to RM12,645,462
100




                                 (2006: Nil)] of an oversea subsidiary pledged to a financial instituition for a standby letter of credit facility
                                 extended to the Company. The said facilities were partly utilised as at the financial year end.




                      TA ENTERPRISE BERHAD
                      (194867-M)
20.	 CASH	AND	CASH	EQUIVALENTS (cont’d)

    The weighted average effective interest rates of deposits at the balance sheet date were as follows:

        	   	   	   	    	    	   	    	     	                           Group	     	                 Company
	   	   	   	   	   	    	    	   	    	     	                       2007		     2006	              2007		     	2006	
	   	   	   	   	   	    	    	   	    	     	                         %		        %			               %			        %		

    Licensed banks                                                    3.21             2.86            -          2.85
    Licensed investment banks and other financial institutions        3.51             2.60         3.35          2.74

    The average maturities of deposits at the end of the financial year were as follows:

        	   	   	   	    	    	   	    	     	                           Group	     	                 Company
	   	   	   	   	   	    	    	   	    	     	                       2007		     2006	              2007		     	2006	
	   	   	   	   	   	    	    	   	    	     	                       Days		     Days			            Days			     Days		

    Licensed banks                                                      12              19             -            30
    Licensed investment banks and other financial institutions          14              17             2            24



21.	 NON-CURRENT	ASSET	CLASSIFIED	AS	HELD	FOR	SALE

    The non-current asset classified as held for sale on the Group’s balance sheet as at 31 January 2007, as described
    in Note 45 (c)(i), is as follows:

        	   	   	   	    	    	   	    	     	                                    	       	            Group
	   	   	   	   	   	    	    	   	    	     	                               	        Note	        2007		    	2006	
	   	   	   	   	   	    	    	   	    	     	                               		           		     RM’000			  RM’000		

    Freehold land and building:
        Cost                                                                               4       61,723             -
        Accumulated impairment loss                                                        4     (26,727)             -

                                                                                                  34,996              -
        Accumulated depreciation                                                           4      (3,204)             -
                                                                                                                           ANNUAL REPORT 2007



                                                                                                  31,792              -




                                                                                               TA ENTERPRISE BERHAD
                                                                                                              (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      22.	 SHARE	CAPITAL
                      	      	     	   	   	   	     	   	   	    	     	                Number	of	Ordinary	Shares
                      	      	     	   	   	   	     	   	   	    	     	                     of	RM	1	Each	                         A
                                                                                                                                    	 mount
                      	      	     	   	   	   	     	   	   	    	     	                     2007		 	      2006	               2007		 		   2006	
                      	      	     	   	   	   	     	   	   	    	     	                      ’000		        ’000				         RM’000			   RM’000		

                             Authorised                                                     4,000,000       4,000,000        4,000,000         4,000,000

                             Issued and fully paid                                          1,328,475       1,328,475        1,328,475         1,328,475

                             The Company had previously obtained the approvals of the Securities Commission on 11 December 2003 and
                             its shareholders on 9 January 2004 for the issuance of a Employees’ Share Option Scheme (“ESOS”). The ESOS
                             became effective on 30 January 2004 and shall be in force for a period of five years from the date of implementation
                             of the ESOS. The option price of the ESOS shall be the higher of the par value of TA Enterprise Berhad’s (“TAE”)
                             shares or the weighted average market price of TAE as shown in the Daily Official List of Bursa Malaysia for the five
                             market days immediately preceding the Offer Date with a discount of not more than ten percent (10%) therefrom.
                             The aggregate maximum number of ESOS shares to be offered and allotted to eligible employees shall be at the
                             discretion of the ESOS Committee after taking into consideration the position, performance, seniority and the length
                             of service of the eligible employee. As at to-date, the Company has not allocated any option to eligible employees.



                      23.	 WARRANTS	

                             The 1999/2009 Warrants issued in financial year ended 31 January 2000 entitle the registered holders to subscribe
                             for one new ordinary share of RM1.00 each at par in the Company at an exercise price of RM1.00 each, exercisable
                             at any time within a period of ten years commencing 25 June 1999. The exercise price of the 1999/2009 Warrants
                             is subject to adjustment from time to time in accordance with the conditions as stipulated in the Deed Poll
                             executed by the Company on 20 April 1999.

                             The remaining unexercised 1999/2009 Warrants as at 31 January 2007 are as follows:

                                                                                                                                             Number	of	
                      	      	     	   	   	   	     	   	   	    	     	                               	               		               	   1999/2009	
                      	      	     	   	   	   	     	   	   	    	     	                               	               		               	    Warrants	
 ANNUAL REPORT 2007




                             At 1 February 2006/31 January 2007                                                                              572,579,462



                             The outstanding warrants have been excluded from the computation of fully diluted earnings per RM1.00 ordinary
                             share as disclosed in Note 41 as their effects are anti-dilutive.

                             Details of warrants exercised after the financial year is as disclosed in Note 45(i).
102




                      TA ENTERPRISE BERHAD
                      (194867-M)
24.	 DEFERRED	TAXATION
	   	   	   	   	   	      	   	   	    	                    	          Group	     	              	Company
	   	   	   	   	   	      	   	   	    	                    	      2007		     2006	           2007		     	2006	
	   	   	   	   	   	      	   	   	    	                    	    RM’000		   RM’000		        RM’000		   RM’000	


    At 1 February                                                  20,879         7,475           26              -
    Recognised in income statement (Note 39)                       (1,921)       13,321            1            26
    Effect of changes in openning tax rate on
        fair value adjustment of assets acquired                     (345)             -            -             -
    Effects of foreign exchange translation                          (146)           83             -             -


    At 31 January                                                  18,467        20,879           27            26


    Presented after appropriate offsetting as follows:
    Deferred tax assets                                            (1,097)       (1,243)            -             -
    Deferred tax liabilities                                       19,564        22,122           27            26


                                                                   18,467        20,879           27            26



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



    Deferred	Tax	Liabilities	of	the	Group

	   	   	   	   	   	      	   	   		   	               	                 	  Fair	Value
	   	   	   	   	   	      	   	   	    	       Property	        Deferred	 Adjustment	
	   	   	   	   	   	      	   	   	    	      Plant	and	         Leasing	 For	Assets
	   	   	   	   	   	      	   	   	    	     Equipment		           	Costs	   Acquired		       Others	     	Total	
	   	   	   	   	   		     	   	   	    	        RM’000	          RM’000		     	RM’000		     	RM’000		   	RM’000	


    At 1 February 2006                              15,240          1,958         6,340          696       24,234
    Transfer from deferred tax assets                    -               -             -         330          330
                                                                                                                       ANNUAL REPORT 2007


    Effect of changes in tax rate not
        recognised in the income statement               -               -        (345)             -       (345)
    Recognised in the income statement               (685)           (254)       (1,508)         225      (2,222)
    Exchange differences                                 -           (157)             -         (60)       (217)


    At 31 January 2007                              14,555          1,547         4,487         1,191      21,780




                                                                                           TA ENTERPRISE BERHAD
                                                                                                          (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      24.	 DEFERRED	TAXATION	(cont’d)

                      	      Deferred	Tax	Liabilities	of	the	Group

                      	      	     	   	   	   	    	     	   		    	             	              	  Fair	Value
                      	      	     	   	   	   	    	     	   	     	     Property	     Deferred	 Adjustment	
                      	      	     	   	   	   	    	     	   	     	    Plant	and	      Leasing	 For	Assets
                      	      	     	   	   	   	    	     	   	     	   Equipment		        	Costs	   Acquired		      Others	     	Total	
                      	      	     	   	   	   		   	     	   	     	      RM’000	       RM’000		     	RM’000		    	RM’000		   	RM’000	


                             At 1 February 2005                               1,290         2,314        8,208         (34)      11,778
                             Transfer from deferred tax assets                    -              -            -        346         346
                             Recognised in the income statement             13,950          (489)       (1,868)        369       11,962
                             Exchange differences                                 -           133             -         15         148


                             At 31 January 2006                             15,240          1,958        6,340         696       24,234


                             Deferred	Tax	Assets	of	the	Group
                      	      	     	   	   	   	    	     	   	     	
                      	      	     	   	   	   	    	     	   	     	             		     General
                      	      	     	   	   	   	    	     	   	     	             	    Provision
                      	      	     	   	   	   	    	     	   	     	     Property		 for	Bad	and
                      	      	     	   	   	   	    	     	   	     	    Plant	and	     Doubtful	          Tax
                      	      	     	   	   	   	    	     	   	     	   Equipment		        	Debts	      Losses		     Others	     	Total	
                      	      	     	   	   	   		   	     	   	     	      RM’000	        RM’000		    	RM’000		    	RM’000		   	RM’000	


                             At 1 February 2006                               (794)         (562)       (1,775)       (224)     (3,355)
                             Transfer to deferred tax liabilities                 -              -            -       (330)       (330)
                             Recognised in the income statement                  2          (107)        1,232        (826)        301
                             Exchange differences                               21               -          42           8           71


                             At 31 January 2007                               (771)         (669)        (501)      (1,372)     (3,313)
 ANNUAL REPORT 2007




                             At 1 February 2005                               (863)        (1,391)      (2,270)        219      (4,305)
                             Transfer to deferred tax liabilities                 -              -            -       (346)       (346)
                             Recognised in the income statement                 35            829          590         (95)       1,359
                             Exchange differences                               34               -         (95)         (2)        (63)


                             At 31 January 2006                               (794)         (562)       (1,775)       (224)     (3,355)
104




                      TA ENTERPRISE BERHAD
                      (194867-M)
24.	 DEFERRED	TAXATION	(cont’d)

	   Deferred	Tax	Liabilities	of	the	Company:
                                                                                                           Accelerated		
	   	   	   	   	   	     	    	    	   	               	             	               	          		 Capital	Allowances	
	   	   	   	   	   	     	    	    	   	               	             	               	          	              RM’000	


    At 1 February 2006                                                                                                   26
    Recognised in the income statement                                                                                    1


    At 31 January 2007                                                                                                   27


    At 1 February 2005                                                                                                     -
    Recognised in the income statement                                                                                   26


    At 31 January 2006                                                                                                   26


    Deferred tax assets have not been recognised in respect of the following items:
                                                                                                       Group
	   	   	   	   	   	     	    	    	   	               	             	               	            2007		      2006	
	   	   	   	   	   	     	    	    	   	               	             	               	          RM’000		    RM’000	


    Unused tax losses                                                                              81,686         125,853
    Unabsorbed capital allowances                                                                 343,515         224,442


    The unused tax losses and unabsorbed capital allowances of the subsidiaries are available indefinitely for offset
    against future taxable profits of the subsidiaries in which those items arose, other than an amount of C$267,700
    (RM794,800 equivalent) (2006: C$1,000) arising in a Canadian subsidiary that will expire in financial year ending
    31 January 2014.


    In respect of subsidiaries incorporated in Malaysia, the availability of their unused tax losses for offsetting against
                                                                                                                                ANNUAL REPORT 2007


    future taxable profits of the subsidiaries is subject to no substantial changes in shareholdings of the subsidiaries
    under Section 44(5A) and (5B) of the Income Tax Act, 1967. Deferred tax assets have not been recognised in respect
    of these items as they cannot be used to offset taxable profits of other subsidiaries in the Group and they have
    arisen in subsidiaries that have a recent history of losses.




                                                                                              TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      25.	 BORROWINGS	
                      	      	     	   	   	   	   	    	   	    	                   	              Group	     	                 	Company
                      	      	     	   	   	   	   	    	   	    	                   	          2007		     2006	              2007		     	2006	
                      	      	     	   	   	   	   	    	   	    	                   	        RM’000		  RM’000		            RM’000		   RM’000	

                             Short	Term	Borrowings	(secured)
                             Foreign currency denominated term loan                             6,867           7,199             -                -
                             Revolving credits                                                 15,000               -        15,000                -

                                                                                               21,867           7,199        15,000                -

                             Long	Term	Borrowings	(secured)
                             Foreign currency denominated term loan                           125,214        145,182                -              -

                             Total	Borrowings	(secured)
                             Foreign currency denominated term loan                           132,081        152,381              -                -
                             Revolving credits                                                 15,000              -         15,000                -

                                                                                              147,081        152,381         15,000                -

                             Maturity of borrowing:
                             Within one year                                                   21,867          7,199         15,000                -
                             More than 1 year and less than 2 years                             7,200          7,548              -                -
                             More than 2 years and less than 5 years                           23,761         24,911              -                -
                             5 years or more                                                   94,253        112,723              -                -

                                                                                              147,081        152,381         15,000                -



                             The refinanced foreign currency loan of the Group which will mature on 5 December 2020 bears a fixed interest
                             rate of 4.79% per annum, repayable in monthly instalments of C$364,412 (RM1,082,000 equivalent) per month.

                             The term loan of the Group is secured against certain freehold land and building as disclosed in Note 5, the
                             assignment of rentals and a general security agreement over the said property.
 ANNUAL REPORT 2007




                             The Company’s revolving credit facilities that were partly utilised at the end of the current financial year are secured
                             by way of a fixed charge and lienholders’ caveat over a freehold building of a subsidiary as disclosed in Note 4 and
                             a third party assignment of rentals from the building that is pledged.

                             The short term borrowing facilities of certain trust and a subsidiary of the Company that were not utilised at the
                             end of the current financial year are secured by way of a fixed charge and lienholders’ caveat over freehold land
                             and buildings of a trust and a subsidiary, held as property, plant and equipment (as disclosed in Note 4) and
                             corporate guarantees issued by the Company.
106




                      TA ENTERPRISE BERHAD
                      (194867-M)
26.	 PROVISION	FOR	LIABILITIES
	   	   	   	   	   	    	    	    	   	                  	                  	          	 Contingent
	   	   	   	   	   	    	    	    	   	                  	                  	          	     loss	on	
	   	   	   	   	   	    	    	    	   	                  	                  	 Employee	         legal	                	
	   	   	   	   	   	    	    		   	   	                  	                  		 benefits	      claims		          	Total	
	   	   	   	   	   	    	    	    	   	                  	                  	   RM’000		    RM’000		           RM’000	

    At 31 January 2006                                                                766           3,274          4,040
    Provision made during the year under personnel costs                              241               -            241
    Provision written-back during the year                                               -        (1,974)        (1,974)
    Payment made during the year                                                         -        (1,300)        (1,300)
    Exchange differences                                                              (37)              -            (37)

    At 31 January 2007                                                                970               -            970



    Provision for employee benefits is in respect of annual leave, long service leave and sick leave in an Australian
    subsidiary when it is probable that settlement will be required and they are capable of being measured reliably.

    Provision for loss on legal claims in prior year was in respect of legal proceedings brought against a subsidiary for
    non-payment of disputed claim for work done. The provision which included principal due and accrued late
    payment charges was fully reversed following the settlement of the legal case during the year.



27.	 TRADE	PAYABLES
	   	   	   	   	   	    	    	    	   	                  	                  	            	            Group
	   	   	   	   	   	    	    	    	   	                  	                  	            	       2007	      	2006	
	   	   	   	   	   	    	    	    	   	                  	                  	            	     RM’000		    RM’000	

    Trade payables for stockbroking subsidiaries:
        - Due to brokers                                                                         294,311        108,267
        - Due to clients                                                                         206,258         66,934
    Clients’ and trust monies                                                                    160,201         68,327
    Unrealised gain/(loss) on clearing accounts on open positions
        of clients from a derivative trading subsidiary                                           13,811         (1,772)
    Due to unit trust funds                                                                          700             135
                                                                                                                              ANNUAL REPORT 2007


    Progress billings in respect of property development costs [Note 6(b)]                         5,214           8,341
    Other trade payables                                                                          14,640         14,562

                                                                                                 695,135        264,794



    Trade payables for stockbroking subsidiaries mainly relate to amounts payable to margin and non-margin clients
    and outstanding contracts entered into on behalf of clients where settlements via the Central Depository System
    or the Central Clearing and Settlement System for the Malaysian and Hong Kong subsidiaries respectively have yet
    to be made.




                                                                                              TA ENTERPRISE BERHAD
                                                                                                                 (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      27.	 TRADE	PAYABLES	(cont’d)

                             Clients’ and trust monies relate to monies owing to clients maintained in segregated accounts of stockbroking and
                             derivative broking subsidiaries. Included in the trust monies is an amount of RM1,015,252 (2006: RM5,783,384) due
                             to a director of the Company, that earns interest of 2.10% to 3.20% (2006: 2.60% to 2.70%) per annum that is
                             payable by the bank via a stockbroking subsidiary.

                             Due to unit trust funds are payable by a subsidiary that is a manager for unit trust funds and relate to amounts
                             arising from the creation of trust units by the subsidiary for sale in the ordinary course of business.

                             Other trade payables arise mainly from subsidiaries involved in general construction, property management and
                             property development activities. Included in other trade payables of the previous financial year was an amount of
                             RM468,400 payable to sub-contractors for construction works performed which was in dispute and settled during
                             the financial year at a sum of RM250,000. Thus, a gain of RM217,471, after netting off of an amount due to a
                             subsidiary, was recognised.

                             The trade credit term for amount payable to non-margin clients in the Malaysian stockbroking subsidiary is 3
                             market days according to the Bursa Malaysia Securities Berhad FDSS trading rules whilst for the overseas stockbroking
                             subsidiary, the trade credit term is 2 market days. Clients’ and trust monies have no fixed terms of repayment. The
                             trade credit term for the amount due to unit trust funds is not exceeding 10 days from the date of creation. The
                             Group’s credit terms for other trade payables are determined and approved on a case-by-case basis.



                      28.	 OTHER	PAYABLES
                      	      	     	   	   	   	   	   	   	    	                  	                Group	      		            Company
                      	      	     	   	   	   	   	   	   	    	                  	          2007		       	2006		        	2007		    	2006	
                      	      	     	   	   	   	   	   	   	    	                  	        RM’000	     RM’000		         RM’000		  RM’000	

                             Other trade related payables                                      5,079         4,681              -              -
                             Due to a substantial shareholder of the Company                  49,085        43,166         49,085         42,946
                             Other interest payable                                              468           514              -              -
                             Amount payable for properties purchased                          11,120             -              -              -
                             Sundry payables                                                  18,726        12,415             48             48
                             Accruals                                                         28,260        12,020          1,888            534
 ANNUAL REPORT 2007




                                                                                            112,738         72,796         51,021         43,528



                             Other trade related payables of the Group represent amounts payable arising directly from the Group’s
                             daily operations.

                             Included in the amount due to a substantial shareholder of the Company is unsecured loan of RM49,085,000
                             (2006 : RM42,946,000) from Datuk Tiah Thee Kian that bears interest of 3% to 5% (2006 : 3%) per annum and has
                             no fixed terms of repayment.
108




                      TA ENTERPRISE BERHAD
                      (194867-M)
29.	 DUE	TO	REMISIERS


	   	   	   	   	   	    	     	   	   	                 	                    	         	            Group
	   	   	   	   	   	    	     	   	   	                 	                	             	       2007		     	2006	
	   	   	   	   	   	    	     	   	   	                 	                	             	     RM’000		   RM’000	

    Current accounts                                                                             4,166          1,434
    Security deposits                                                                           72,323         71,380

                                                                                                76,489         72,814



    The amounts due to remisiers by the stockbroking subsidiaries are unsecured. The current account balances
    are interest-free and repayable not later than one month. Security deposits are received as collateral for trading
    limits granted to the customers of the remisiers. Floating rate interest earned and paid to the remisiers on
    security deposits placed as deposits with licensed financial institutions ranged from 2% to 3.4% (2006 : 2% to 3%)
    per annum. Repayment of security deposits are subject to the terms in the remisiers’ agreement.



30.	 DUE	TO	DIRECTORS
	   	   	   	   	   	    	     	   	   	                 	              Group	      		             Company
	   	   	   	   	   	    	     	   	   	                 	         2007		      	2006		         	2007		    	2006	
	   	   	   	   	   	    	     	   	   	                 	       RM’000		   RM’000		          RM’000		  RM’000	

    Current accounts:
    Directors of the Company                                           27            70             27              70



    Current account payables to Directors of the Company are unsecured, interest-free and have no fixed terms
    of repayment.



31.	 DUE	TO	SUBSIDIARIES

    The amounts due to subsidiaries are unsecured, have no fixed terms of repayment and interest-free other than an
                                                                                                                           ANNUAL REPORT 2007



    amount of RM3,291,885 (2006: RM1,506,000) due to TACB, which bore interest of 2% per annum up to
    December 2006. The interest-bearing amount was repaid before 31 January 2007.




                                                                                            TA ENTERPRISE BERHAD
                                                                                                              (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      32.	 REVENUE
                      	      	     	   	   	   	     	    	   	    	                   	          Group	      		        Company
                      	      	     	   	   	   	     	    	   	    	                   	     2007		      	2006		    	2007		    	2006	
                      	      	     	   	   	   	     	    	   	    	                   	   RM’000		   RM’000		     RM’000		  RM’000	


                             Gross brokerage                                               103,955       58,321          -          -
                             Service and administration charge                              18,932       18,848          -          -
                             Underwriting commission and placement fee                          66         458           -          -
                             Nominee service charges                                            63          49           -          -
                             Service charges from sale of trust units                        6,494        5,853          -          -
                             Manager’s fee from unit trust funds                             8,515        7,837          -          -
                             Rollover fees earned                                              238        3,082          -          -
                             Acceptance fees                                                     -          77           -          -
                             Interest income                                                 6,251        4,592          -          -
                             Gross dividends from:
                                   - subsidiaries (Note 40)                                      -            -     48,535    124,946
                                   - quoted trust units in Malaysia                             85            -        85           -
                                   - unquoted trust units outside Malaysia (Note 40)             -            -          -      5,516
                                   - unquoted shares in Malaysia                               172         294        172        294
                             Management fees from:
                                   - subsidiaries (Note 40)                                      -            -      4,800      3,212
                                   - others                                                    249         738                      -
                             Sales of properties                                            94,720      105,616          -          -
                             Rental income                                                  40,995       39,578          -          -
                             Hotel room rental and related revenue                          73,471       67,239          -          -
                             Other revenue                                                     314         174           -          -


                                                                                           354,520      312,756     53,592    133,968
 ANNUAL REPORT 2007
110




                      TA ENTERPRISE BERHAD
                      (194867-M)
33.	 OTHER	INCOME

    Included in other income are:
	   	 	 	 	 	            	   	 	         	              	                Group	      		          Company
	   	 	 	 	 	            	   	 	         	              	           2007		      	2006		      	2007		    	2006	
	   	 	 	 	 	            	   	 	         	              	         RM’000		   RM’000		       RM’000		  RM’000	


    Accounting fees earned from:
       - subsidiaries (Note 40)                                         -            -            -           96
    Accretion of discount on unquoted bonds                            58          92            59           30
    Bad debts recovered                                               915        2,056            -             -
    Gross dividends from quoted investments:
       - in Malaysia                                                1,044        1,011            -             -
       - outside Malaysia                                              82         110             -             -
    Interest income from:
       - subsidiaries (Note 40)                                         -            -          411         452
       - placements in financial institutions                      12,430       12,256          850       2,649
       - others                                                     3,341        1,618        1,132         610
       - overdue financial receivables                              2,525       12,099            -             -
    Rental income from:
       - a Director (Note 40)                                         360         360           360         360
       - others                                                       354         318             6             6
    Net gain on disposal of property, plant and equipment             990            -            -             -
    Net gain on disposal of other investments                       1,940       14,917          246         372
    Net gain on disposal of short term investments                 14,909        2,516            -             -
    Gain arising from allotment and cancellation of bonus
       shares and capital distribution by Bursa Malaysia Berhad         -        1,622            -             -
    Purchaser’s deposit forfeited                                       9            7            -             -
    Write-back of provision for liabilities                         1,974            -            -             -
                                                                                                                     ANNUAL REPORT 2007




                                                                                          TA ENTERPRISE BERHAD
                                                                                                        (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      34.	 PERSONNEL	COSTS	

                      	      	     	   	   	   	     	   	   	   	                	               Group	      		            Company
                      	      	     	   	   	   	     	   	   	   	                	         2007	        	2006		        	2007		    	2006	
                      	      	     	   	   	   	     	   	   	   	                	       RM’000		    RM’000		         RM’000		  RM’000	


                             Wages, salaries and bonuses                                    60,370        48,408          7,916          6,268
                             Post employment benefits                                           23           515             23             11
                             Social security costs                                              86            77             47             45
                             Contribution to Employees’ Provident Fund                       5,066          4,681           877           691
                             Unutilised annual leave                                         1,367          1,505              -             -
                             Payment under Voluntary Separation Scheme of a subsidiary         842              -              -             -
                             Other staff related expenses                                    1,662          1,278           451           643


                                                                                            69,416        56,464          9,314          7,658


                             The above personnel costs include remuneration paid / payable to directors of the Group and the Company
                             (excluding fees, benefits-in-kind and commission that are not classified as personnel costs) that are disclosed in
                             Note 35 below.



                      35.	 DIRECTORS’	REMUNERATION	                               	                   	          	                 	          	
                      	      	     	   	   	   	     	   	   	   	                	              Group	      		             Company
                      	      	     	   	   	   	     	   	   	   	                	         2007	       	2006		         	2007		    	2006	
                      	      	     	   	   	   	     	   	   	   	                	       RM’000		   RM’000		          RM’000		  RM’000	


                             Directors	of	the	Company	

                             Executive:	
                             Salaries and other emoluments                                   2,639          2,623         2,369          2,359
                             Bonus                                                             644             62           610             29
                             Benefits-in-kind                                                  416            440           416            397

                                                                                             3,699          3,125         3,395          2,785
 ANNUAL REPORT 2007




                             Non-executive:
                             Other emoluments                                                   40            34             25             18
                             Fees                                                               27            34             20             20
                             Benefits-in-kind                                                    -             4              -              4

                                                                                                67            72             45             42

                             Non-executive	(former	Director):
112




                             Gratuity                                                             -          200               -          200

                                                                                                  -          200               -          200




                      TA ENTERPRISE BERHAD
                      (194867-M)
35.	 DIRECTORS’	REMUNERATION	(cont’d)	               	                 	         	              	              	
	    	
	   	   	   	   	   	   	   	   	   	                	              Group	      		             Company
	   	   	   	   	   	   	   	   	   	                	        2007	        	2006		         	2007		    	2006	
	   	   	   	   	   	   	   	   	   	                	      RM’000		    RM’000		          RM’000		  RM’000	


    Other	Directors	
    Executive:	
    Salaries and other emoluments                              2,963        3,144             734         656
    Bonus                                                        711          851             250          83
    Benefits-in-kind                                             145          191              52          58
    Fees                                                          41            -               -           -
    Commission                                                   690          873               -           -
    Gratuity                                                      26          504              26           -

                                                               4,576        5,563           1,062         797

    Non-executive:
    Other emoluments                                            131             8               -             -
    Benefits-in-kind                                             15             1               -             -
    Fees                                                         33            26               -             -

                                                                179            35               -             -

    Total                                                      8,521        8,995           4,502       3,824

    Total	excluding	benefits-in-kind                           7,945        8,359           4,034       3,365



    The number of directors of the Company whose total remuneration during the year fall within the following
    bands is as follows:
                                                                                       Number	of	Directors	
	   	 	 	 	 	            	  	 	     	              	              	            	         2007		         	2006

    Executive	Directors:
    RM300,000 - RM350,000                                                                      -             1
    RM350,000 - RM400,000                                                                      -             1
                                                                                                                   ANNUAL REPORT 2007


    RM400,000 - RM450,000                                                                      1             -
    RM450,000 - RM500,000                                                                      1             -
    RM550,000 - RM600,000                                                                      -             1
    RM1,850,000 - RM1,900,000                                                                  -             1
    RM2,650,000 - RM2,700,000                                                                  1             -

	   Former	Executive	Directors:		   	                	                 	            	           	              	
    RM100,000 - RM150,000                                                                      1              -

    Non-Executive	Directors:
    Below RM50,000                                                                             3             2
    Former	Non-Executive	Directors:
    RM150,000 - RM200,000                                                                       -            1




                                                                                        TA ENTERPRISE BERHAD
                                                                                                      (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      36.	 FOREIGN	EXCHANGE	(LOSS)/GAINS,	NET		                          	             	         	          	
                      	    	
                             Foreign exchange (loss)/gains, net comprise:
                      	      	 	 	 	 	           	    	 	       	            	            Group	      		        Company
                      	      	 	 	 	 	           	    	 	       	            	      2007	        	2006		    	2007		    	2006	
                      	      	 	 	 	 	           	    	 	       	            	    RM’000		    RM’000		     RM’000		  RM’000	


                             Realised net gain/(loss) on foreign
                                exchange transactions                                  208      10,375         26       5,949
                             Realised net loss on forward contracts                (1,880)           -          -           -
                             Unrealised (loss)/gain on foreign
                                exchange translation, net                          (8,248)      (2,886)         -          7

                                                                                   (9,920)        7,489        26       5,956


                      37.	 OTHER	EXPENSES

                             Included in other expenses are:
                      	      	 	 	 	 	            	   	 	      	             	           Group	      		         Company
                      	      	 	 	 	 	            	   	 	      	             	      2007	       	2006		     	2007		    	2006	
                      	      	 	 	 	 	            	   	 	      	             	    RM’000		   RM’000		      RM’000		  RM’000	

                             Auditors’ remuneration:
                             Parent	auditors
                                Statutory audit
                                - current year                                        224          231         28         25
                                - over provision in prior year                         (1)         (38)         -          -
                                Other services
                                - current year                                         25           29          5          5
                             Other	firms	of	auditors
                                Statutory audit
                                - current year                                        390          403          -           -
                                - (over)/under provision in prior year                (35)          40          -           -
                                Other services
                                - current year                                        176           92          -           -
                             Amortisation of:
 ANNUAL REPORT 2007




                                - intangible asset                                    143            77         -          -
                                - trading right in SEHK                                 -            33         -          -
                                - premium on unquoted bonds and debt securities        20            18        20         18
                                - leasehold development properties                      7             7         -          -
                                - deferred financing costs                             29            17         -          -
                                - deferred leasing costs                            2,685         3,122         -          -
                             Provision for doubtful debts
                                - subsidiaries                                          -            -        455           -
                                - others                                              684       32,647          -           -
114




                      TA ENTERPRISE BERHAD
                      (194867-M)
37.	 OTHER	EXPENSES (cont’d)
	   	   	     	   	    	    	   	   	   	                  	         Group	      		          Company
	   	   	     	   	    	    	   	   	   	                  	     2007	      	2006		      	2007		     	2006	
	   	   	     	   	    	    	   	   	   	                  	   RM’000		  RM’000		       RM’000		  RM’000	


    Write-back of provision for doubtful debts
        - due from subsidiaries                                       -           -             -       (75)
            - others                                           (14,800)    (12,414)             -           -
    Bad debts recovered from a subsidiary                             -           -     (136,218)           -
    Bad debts written off                                           57         472              -           -
    Deposit written off                                               -          8              -           -
    Property, plant and equipment written off                         -        224              -       221
    Provision for impairment losses on:
        - club membership                                             -         11              -           -
        - property, plant and equipment                               -        499              -           -
        - investment in subsidiaries                                  -           -       14,740     37,507
        - investment in an associated company                         -           -             -          1
        - other investments                                           -     10,878           240          55
        - short term investments                                      -         18              -           -
        - development properties                                   125            -             -           -
    Write down in value of properties held for resale                 -         27              -           -
    Net loss on disposal of property, plant and equipment             -        415              -           -
    Loss from redemption of trust units outside Malaysia              -           -             -     1,466
    Net loss on disposals of investments                            17           7              -           -
    Loss on disposal of club membership                             91         110            16          43
    Provision for liabilities                                         -        121              -           -
    Rental of premises                                             902       1,126            20            -
    Rental of equipment                                          1,789       1,623              -           -
    Management fees to:
                                                                                                                 ANNUAL REPORT 2007


        - subsidiaries (Note 40)                                      -           -          144        152
        - others                                                 2,623       2,016              -           -
    Fees paid to firms in which certain directors
       of the Company have interests (Note 40)                     585          66              -           -
    Write-back of impairment losses on:
        - property, plant and equipment                         (5,345)     (5,254)             -           -
        - investment in subsidiaries                                  -           -      (17,088)           -
        - associated company                                          -           -          (23)           -
        - other investments                                     (1,752)         (9)         (208)           -
        - short term investment                                     (9)        (18)             -           -




                                                                                      TA ENTERPRISE BERHAD
                                                                                                    (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      38.	 FINANCE	COSTS,	NET	 	                    	                  	          	            	         	           	


                             Included in finance costs are:
                      	      	 	 	 	 	            	    	 	          	                  	         Group	      		         Company
                      	      	 	 	 	 	            	    	 	          	                  	     2007	      	2006		     	2007		     	2006	
                      	      	 	 	 	 	            	    	 	          	                  	   RM’000		  RM’000		      RM’000		  RM’000	


                             Interest expense:
                                   - Term loan                                               7,036       10,345          -           -
                                   - Revolving credit                                          204            -       204            -
                                   - Bank overdrafts                                             1          14           -           -
                                   - Subsidiaries (Note 40)                                       -           -        40           8
                                   - Loan from a substantial shareholder
                                       of the Company (Note 40)                              1,746        1,011      1,745       1,011


                                                                                             8,987       11,370      1,989       1,019
                             Guarantee and commitment
                                   fees provided                                                19          52           -           -
                                   Others                                                      172          69         12           4


                                                                                             9,178       11,491      2,001       1,023




                      39.	 INCOME	TAX	EXPENSE
                      	      	     	   	    	   	       	   	   	   	                  	          Group	      		        Company
                      	      	     	   	    	   	       	   	   	   	                  	     2007	       	2006		    	2007		    	2006	
                      	      	     	   	    	   	       	   	   	   	                  	   RM’000		   RM’000		     RM’000		  RM’000	


                             Current income tax:
                                   Malaysian income tax                                     13,222        3,843      3,758      11,051
                                   Foreign tax                                               3,733        6,754          -           -
 ANNUAL REPORT 2007




                                                                                            16,955       10,597      3,758      11,051


                             Deferred tax:
                                   Relating to origination and reversal of temporary
                                   differences (Note 24)                                    (1,921)      13,321         1          26
116




                      TA ENTERPRISE BERHAD
                      (194867-M)
39.	 INCOME	TAX	EXPENSE	(cont’d)

	   	   	   	   	   	     	     	   	    	                 	                Group	      		           Company
	   	   	   	   	   	     	     	   	    	                 	            2007	      	2006		       	2007		     	2006	
	   	   	   	   	   	     	     	   	    	                 	          RM’000		  RM’000		        RM’000		  RM’000	

    (Over)/underprovided in prior years:
       Malaysian income tax                                            (1,377)    (15,133)       (1,755)            (71)
        Foreign tax                                                    (4,277)          11             -               -

                                                                       (5,654)    (15,122)       (1,755)            (71)

                                                                        9,380       8,796         2,004         11,006



    Domestic income tax is calculated at the Malaysian statutory tax rate of 27% (2006: 28%) of the estimated assessable
    profit for the year. During the financial year, the concessionary income tax rate applicable to subsidiaries
    incorporated in Malaysia with paid up capital of RM2.5 million and below is subject to the concessionary tax rate
    of 20% on chargeable income of up to RM500,000 (2006: RM500,000). For chargeable income in excess of RM500,000
    (2006: RM500,000), the tax rate of 27% is applicable. Taxation for other jurisdictions is calculated at the rates
    prevailing in the respective jurisdictions.

    The statutory tax rate will be reduced to 26% effective year of assessment 2008. The computation of deferred
    tax as at 31 January 2007 has reflected these changes.

    Reconciliations of income tax expense applicable to profit before tax at the statutory income tax rate to income
    tax expense at the effective income tax rate of the Group and of the Company are as follows:

	   	   	   	   	   	     	     	   	    	                 	                 	           	       	2007		        	2006	
	   	   	   	   	   	     	     	   	    	                 		                	           	      RM’000		      	RM’000	


    Group
    Profit before tax                                                                           143,115         89,504


    Taxation at Malaysian statutory tax rate of 27% (2006: 28%)                                  38,641         25,061
    Effect of loss/(income) subject to concessionary tax rate of 20%                                 34             (43)
                                                                                                                             ANNUAL REPORT 2007



    Effect of different tax rates in other countries                                                518             (41)
    Effect of income not subject to tax                                                         (16,154)       (10,388)
    Effect of expenses not deductible for tax purposes                                           13,775         30,076
    Benefit from utilisation of group relief                                                     (1,280)                -
    Effect of utilisation of previously unrecognised tax losses and
        unabsorbed capital allowances                                                           (20,940)       (20,879)
    Deferred tax assets not recognised during the year                                              440             132
    Over provided in prior years                                                                 (5,654)       (15,122)


    Tax expense for the year                                                                       9,380          8,796




                                                                                             TA ENTERPRISE BERHAD
                                                                                                                (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      39.	 INCOME	TAX	EXPENSE	(cont’d)

                      	      	     	   	   	   	     	    	   	   	                 	             	             	      	2007		         	2006	
                      	      	     	   	   	   	     	    	   	   	                 		            	             	     RM’000		       	RM’000	


                             Company
                             Profit before tax                                                                         181,189         93,823


                             Taxation at Malaysian statutory tax rate of 27% (2006: 28%)                                48,921         26,270
                             Effect of income not subject to tax                                                       (45,455)       (26,525)
                             Effect of expenses not deductible for tax purposes                                            293         11,332
                             Over provided in prior years                                                               (1,755)           (71)


                             Tax expense for the year                                                                    2,004         11,006



                      	      	     	   	   	   	     	    	   	   	                 	            Group	      		             Company
                      	      	     	   	   	   	     	    	   	   	                 	        2007	      	2006		         	2007		     	2006	
                      	      	     	   	   	   	     		   	   	   	                 	      RM’000		  	RM’000		        	RM’000		  	RM’000	


                             Tax	losses	are	analysed	as	follows:	


                             Tax savings recognised during the year arising from
                                   utilisation of tax losses brought forward                13,675        15,501              -              -
                             Unutilised tax losses carried forward                          83,326       131,423              -              -



                                                           a
                             Unabsorbed	capital	allowances		 re	analysed	as	follows:


                             Tax savings recognised during the year arising from:
                             Utilisation of current year capital allowances                  2,724         3,907              -              -
                             Utilisation of unabsorbed capital allowances
                                   brought forward from previous years                       4,541         5,378              -              -
 ANNUAL REPORT 2007




                             Unabsorbed capital allowances carried forward                 343,515       224,442              -              -



                             As at 31 January 2007, the Company has tax exempt profits available for distribution of approximately
                             RM145,035,000 (2006 : RM114,940,000), subject to the agreement of the Inland Revenue Board.


                             The Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967 and the balance in the tax-
                             exempt income account to frank the payment of dividends out of its entire retained profits as at 31 January 2007.
118




                      TA ENTERPRISE BERHAD
                      (194867-M)
40.	 SIGNIFICANT	RELATED	PARTY	TRANSACTIONS

    In addition to the transactions detailed elsewhere in the financial statements, the Group and the Company had
    the following transactions with related parties during the financial year:

	   	   	   	   	   	      	      	   	   	            	              Group	      		            Company
	   	   	   	   	   	      	      	   	   	            	          2007	      	2006		        	2007		     	2006	
	   	   	   	   	   	      		     	   	   	            	        RM’000		  	RM’000		       	RM’000		  	RM’000	


    Included	in	revenue	(Note	32)	are:	
    Gross dividends from subsidiaries:
    - TA Securities Holdings Berhad                                   -            -        32,500        75,000
    - TA Futures Sdn. Bhd.                                            -             -         210            210
    - TA Centre Berhad                                                -             -       15,725        14,800
    - TA International Sdn. Bhd.                                      -             -            -        33,156
    - TA Properties Sdn. Bhd.                                         -             -         100            100
    - TA Asset Management Sdn. Bhd.                                   -             -            -         1,680
    - Wales House Trust                                               -             -            -         5,516


    Management fees received from subsidiaries:
    - TA Centre Berhad                                                -            -          300                -
    - TA Securities Holdings Berhad                                   -            -         3,600         3,212
    - TA Futures Sdn. Bhd.                                            -             -         240                -
    - TA First Credit Sdn. Bhd.                                       -             -         360                -
    - TA Investment Management Berhad                                 -             -         240                -
    - Orchard Park Sdn. Bhd.                                          -             -           60               -


    Rental income received from a firm where Christopher Koh,
       a Director of the Company, has interest                      49             -             -               -    ANNUAL REPORT 2007


    Rental income, tenant recoveries and reimbursement for
       leasehold improvements received from a company related
       to Datin Tan Kuay Fong, a director of the Company           675           660             -               -


    Portfolio management fee earned from Datin Tan Kuay Fong by:
    - TA Investment Management Berhad                               31             -             -               -
    - TA Asset Management Sdn Bhd                                    3            24             -               -




                                                                                        TA ENTERPRISE BERHAD
                                                                                                         (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      40.	 SIGNIFICANT	RELATED	PARTY	TRANSACTIONS	(cont’d)

                      	      	     	   	   	   	   	    	   	    	                  	         Group	      		         Company
                      	      	     	   	   	   	   	    	   	    	                  	     2007	      	2006		     	2007		     	2006	
                      	      	     	   	   	   	   		   	   	    	                  	   RM’000		  	RM’000		    	RM’000		  	RM’000	


                             Included	in	other	income	(Note	33)	are:	
                             Accounting fees received from subsidiaries:
                             - TA Asset Management Sdn. Bhd.                                  -           -          -          36
                             - TA Investment Management Berhad                                -           -          -          60
                             Interest income received from TA Futures Sdn. Bhd.               -           -        411         452
                             Rental income received from
                                - Datin Tan Kuay Fong, a Director of the Company           360         360         360         360
                             Unit trust management fee rebate from
                                - TA Investment Management Berhad                             -           -          8          13


                             Included	in	other	expenses		(Note	37)	are:
                             Management fees paid to subsidiaries:
                             - TA Project Management Sdn. Bhd.                                -           -        144         144
                             - TA Dotcom Sdn. Bhd.                                            -           -          -           8
                             Legal fees paid to a firm where Jory Leong Kam Weng,
                                a Director of the Company, has interest                      4            2          -            -
                             Consultancy fees paid to a firm where Peter U Chin Wei,
                                a Director of the Company has interest                      21           64          -            -
                             Legal fees paid to a firm where Christopher Koh,
                                a Director of the Company, has interest                    560            -          -            -


                             Included	in	finance	costs,	net	(Note	38)	are:
                             Interest expense to subsidiaries:
                             - TA Centre Berhad                                               -           -         40           8
 ANNUAL REPORT 2007




                             Interest expense on loans from Datuk Tiah Thee Kian,
                                 a substantial shareholder of the Company                 1,745       1,011      1,745        1,011
120




                      TA ENTERPRISE BERHAD
                      (194867-M)
40.	 SIGNIFICANT	RELATED	PARTY	TRANSACTIONS	(cont’d)

	   	   	   	   	   	       	    	   	                 	                 	         Group	     	           Company
	   	   	   	   	   	       	    	   	                 	                 	     2007	      2006	        	2007	    	2006	
	   	   	   	   	   	       		   	   	                 	                 	   RM’000		  	RM’000		     	RM’000		 	RM’000	


    Others:
    Property, plant and equipment transferred from subsidiaries:
    - TA Centre Berhad                                                             -            -         73             -
    - TA Securities Holdings Berhad                                                -            -          4             -
    Net drawdown of loan from:
    - Datuk Tiah Thee Kian (Note 28)                                           5,919        1,544      6,139       1,544


    Details of a subordinated loan granted to TA Futures Sdn. Bhd., a subsidiary, is disclosed in Note 17 to the
    financial statements.


    Other than the transfer of motor vehicles from a wholly-owned subsidiary to the Company at net book value, the
    Directors are of the opinion that the above transactions have been entered into in the normal course of business
    and have been established on terms and conditions that are not materially different from that obtainable in
    transactions with unrelated parties.



41.	 EARNINGS	PER	SHARE	

    The basic and diluted earnings per share are calculated as follows:


                                                                               Weighted	Average	          Earnings	per
	   	   	   	   	   	       	    	   	               	Income	                  Number	of	Share	              Share
	   	   	   	   	   	       	    	   	             2007	      2006	            	2007	     2006	         	2007	    	2006	
	   	   	   	   	   	       		   	   	           RM’000	   RM’000	               ’000		   	’000		         	Sen	     	Sen	


    Net profit for the year                      133,063        80,348       1,328,475   1,328,475
                                                                                                                              ANNUAL REPORT 2007


    Basic / diluted earnings per share                                                                  10.02        6.05




    The outstanding warrants (Note 23) have been excluded from the computation of fully diluted earnings per RM1.00
    ordinary share as their conversion to ordinary shares are anti-dilutive.


    The comparative basic/diluted earnings per share has been restated to take into account the effect of the changes
    in accounting policies (Note 3.1(j)(iii)) on profit for that year.




                                                                                               TA ENTERPRISE BERHAD
                                                                                                                 (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      42.	 DIVIDENDS
                      	      	     	   	   	   	     	    	   	               	                	       				Amount	    							Net	dividend	per	share
                      	      	     	   	   	   	     	    	   	               	            	         2007	      2006	               	2007	    	2006	
                      	      	     	   	   	   	     		   	   	               	            	       RM’000		 	RM’000		                 	Sen		    	Sen	


                             Final
                      	      In	respect	of	financial	year	ended	31	January	2006
                             3% less 28% taxation, on 1,328,474,702
                                   ordinary shares, declared on 25 May 2006                               -     28,695                  -       2.16
                                   and paid on 15 August 2006

                             In	respect	of	financial	year	ended		31	January	2007
                      	      Proposed	for	approval	at	AGM	(not	recognised	as
                      	      at	31	January	2007)
                                   7% less 26% taxation                                                   *           -             5.18           -


                                                                                                          -     28,695              5.18        2.16



                             *At the forthcoming Annual General Meeting, a final dividend in respect of the current financial year ended
                             31 January 2007 of 7% less 26% taxation (5.18 sen net per ordinary share), on the number of shares in isssue on the
                             entitlement date to be announced, will be proposed for shareholders’ approval. The financial statements for the
                             current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will
                             be accounted for in the shareholders’ equity as an appropriation of retained profits in the next financial year ending
                             31 January 2008.



                      43.	 COMMITMENTS
                                                                                                                                     Group
                      	      	     	   	   	   	     	    	   	               	            	               	           	          2007		   	2006	
                      	      	     	   	   	   	     	    	   	               	            	               	           	        RM’000		 RM’000	
 ANNUAL REPORT 2007




                             Approved and contracted for:
                                   Property, plant and equipment                                                                        -      2,984
                                   Land to be held for property development                                                        9,574    262,226


                             Underwriting commitment in respect of new ordinary
                                   shares to be issued by a listed issuer                                                          5,000           -



                             RM9,574,200 was paid in February 2007 as the balance of the purchase consideration for the acquisition of the land
122




                             by Star Winners Sdn. Bhd., a wholly-owned subsidiary of TA Enterprise Berhad [Note 45(a)(vi)].




                      TA ENTERPRISE BERHAD
                      (194867-M)
43.	 COMMITMENTS	(cont’d)
    A subsidiary has also entered into a put option agreement to require a third party to acquire the abovementioned
    shares underwritten by the subsidiary.

    Non-Cancellable	Operating	Lease	Commitments	-	Group	as	Lessee
                                                                                                                   Group
	   	   	       	   	   	     	    	   	                	            	          	            	          2007		      	2006	
	   	   	       	   	   	     	    	   	                	            	          	            	        RM’000		    RM’000	

    Future minimum rentals payable:
    Not later than 1 year                                                                                  250         417
    Later than 1 year and not later than 5 years                                                            88         352

                                                                                                           338         769

    Operating lease payments represent rental payable by the Group for the use of buildings. Leases are negotiated for
    an average of 3.7 (2006 : 3.8) years and rentals are fixed for an average of 2 (2006 : 2) years.

44.	 CONTINGENT	LIABILITIES	(unsecured)

    TA Antarabangsa Finance South Africa Limited, a wholly owned subsidiary incorporated in The Republic of South
    Africa, had provided an indemnity to the purchaser of TA Securities South Africa Limited, a former wholly-owned
    subsidiary incorporated in The Republic of South Africa which was disposed during the financial year ended 31
    January 2001, for any potential claims against the latter arising from events occurring before the agreed disposal
    date. Potential claims amounting to Rand1,600,000 or RM767,000 equivalent (2006: Rand1,600,000 or RM982,000
    equivalent) were not provided for in the financial statements of the Group as at 31 January 2007 due to the
    uncertainty of the outcome of these claims.

45.	 OTHER	SIGNIFICANT	AND	SUBSEQUENT	EVENTS

	   (a)	 Acquisition	of	properties

        (i)         On 20 May 2005, Indo Aman Bina Sdn Bhd (“Indo Aman Bina”), a wholly owned subsidiary of TAP, entered
                    into a Sale and Purchase Agreement to acquire two parcels of freehold land held under HSD 113435 PT
                    No. 34081 and HSD 113436 PT No. 34082, both in Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor
                    Darul Ehsan measuring in area approximately 937,149 square feet, for a total cash consideration of
                    RM79,657,835 [Note 6(a)] which was pending completion as at 31 January 2006. The amount was
                    capitalised during the current financial year after full payment.
                                                                                                                                ANNUAL REPORT 2007



        (ii)        On 20 July 2005, Indo Aman Bina entered into another Sale and Purchase Agreement for the acquisition
                    of 8 parcels of freehold land measuring approximately 26.55 acres or 1,156,713 square feet in Mukim
                    Sungai Buloh, Daerah Petaling, Negeri Selangor Darul Ehsan for a total cash consideration of
                    RM109,887,735 [Note 6(a)] which was pending completion as at 31 January 2006. The amount was
                    capitalised during the current financial year after full payment.

        (iii)       On 16 September 2005, Astra Dinamik Sdn Bhd (Astra Dinamik), a wholly owned subsidiary of TAP,
                    entered into a conditional Sale and Purchase Agreement for the proposed acquisition of five pieces of
                    freehold vacant land measuring approximately 0.824 acres or 35,917 square feet in Seksyen 67, Mukim
                    and Bandar of Kuala Lumpur, for a total cash consideration of RM22,448,125 [Note 6(a)] which was
                    pending completion as at 31 January 2006. The amount was capitalised during the current financial year.




                                                                                                 TA ENTERPRISE BERHAD
                                                                                                                   (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      45.	 OTHER	SIGNIFICANT	AND	SUBSEQUENT	EVENTS	(cont’d)
                      	      (a)	 Acquisition	of	properties	(cont’d)

                                   (iv)      On 16 September 2005, Astra Dinamik entered into another conditional Sale and Purchase Agreement
                                             for the proposed acquisition of 14 pieces of freehold vacant land and 3 pieces of adjoining state land to
                                             be alienated, all measuring approximately 2.251 acres or 98,030 square feet in Seksyen 67, Mukim and
                                             Bandar of Kuala Lumpur, for a total cash consideration of RM61,268,750 which was pending completion
                                             as at 31 January 2006. The purchase consideration was revised during the current financial year to
                                             RM58,727,500 [Note 6(a)] after the exclusion of 2 out of 3 pieces of the adjoining state land measuring
                                             3,247 square feet from the Agreement and the reduction of area of the remaining piece of adjoining state
                                             land to 5,133 square feet. The amount was capitalised during the current financial year.

                                   (v)       On 29 December 2005, the Directors of Ace Fit International Limited, a wholly-owned subsidiary of
                                             TA International Sdn. Bhd., approved the purchase of 3 units of leasehold office units and 3 units of car
                                             park lots for a total cash consideration of RMB2,721,514 (RM1,225,498 equivalent) which was pending
                                             completion as at 31 January 2006. The acquisition was capitalised during the current financial year as
                                             building-in-construction.

                                   (vi)      On 22 Jan 2007, a wholly-owned subsidiary of TAP, Star Winners Sdn Bhd (“SWSB”) entered into a Sale
                                             and Purchase Agreement for the acquisition of 3 pieces of freehold lands held under Grant 42988
                                             Lot 1266, Grant 42989 Lot 1267 and Grant 42990 Lot 1268, measuring approximately 30,703 square
                                             feet in Section 57, Town and District of Kuala Lumpur, State of Wilayah Persekutuan, for a total cash
                                             consideration of RM10,638,000 that was pending completion as at 31 January 2007. The acquisition was
                                             completed subsequent to the financial year and recognised as addition to land held for property
                                             development in the financial year ending 31 January 2008.

                                   (vii)     On 15 February 2007, Sharp Factor Sdn Bhd, a wholly owned subsidiary of TAP, entered into a Sale and
                                             Purchase Agreement for the acquisition of a piece of land held under HS(D) 36998, PT 13861, Bandar
                                             Serendah, Ulu Selangor, measuring approximately 35,970 square feet, for a total cash consideration of
                                             RM150,000. The acquisition was completed subsequent to the financial year and recognised as addition
                                             to land held for property development for the financial year ending 31 January 2008.

                      	      (b)	Acquisition	of	subsidiaries	

                      	      	     (i)	 	    On 18 August 2006, TAP had acquired 2 ordinary shares of RM1.00 each representing 100% equity interest
                                             in Star Winners Sdn Bhd (“SWSB”) for a total cash consideration of RM2.00. SWSB was incorporated on
                                             17 July 2006 as a private limited company in Malaysia under the Companies Act, 1965. Its principal
                                             activity is investment holding and SWSB is currently dormant.

                                   (ii)	 	   On 22 September 2006, TA International Sdn Bhd (“TAI”), a wholly-owned subsidiary of TAE had
                                             acquired 1 ordinary share of HKD1 representing 100% equity interest in Winner Star Group Limited
                                             (“Winner Star”), a foreign subsidiary, for a total cash consideration of HKD1. Winner Star was incorporated
 ANNUAL REPORT 2007




                                             on 20 July 2006 as a limited company in Hong Kong under the Companies Ordinance. Its principal
                                             activity is investment holding.

                             (c)	 Disposal	of	property

                      	      	     (i)	 	    TA Antarabangsa Finance South Africa Limited, a wholly-owned subsidiary of the Company incorporated
                                             in the Republic of South Africa, had on 6 September 2006 entered into an Agreement of Sale with
                                             Paramount Property Fund Limited (“PPFL”) for the sale of the rental enterprise including all land and
                                             buildings erected on the property in Rosebank Township for a total cash consideration of
                                             Rand73,000,000 (equivalent to RM34,996,200). The sale is conditional upon the fulfilment of certain
                                             conditions precedent among which, include the confirmation from PPFL that it is satisfied with its due
                                             diligence of the rental enterprise and the approval of the board of directors of PPFL. The agreement has
124




                                             become unconditional and was pending completion as at the balance sheet date.




                      TA ENTERPRISE BERHAD
                      (194867-M)
45.	 OTHER	SIGNIFICANT	AND	SUBSEQUENT	EVENTS	(cont’d)

	   (d)	Establishment	of	a	wholly-foreign	owned	enterprise	 	                  	              	           	

        On 18 May 2006, the Company had submitted an application to Wu Hua Local Authorities of Kunming, Yunnan
        for the establishment of a wholly foreign-owned enterprise (“WFOE”) in Kunming, China. The Certificate
        of Approval for the establishment of the aforesaid WFOE was obtained on 21 June 2006. Following, the WFOE
        was incorporated on 7 July 2006 with a registered capital of RMB4 million and its business licence was received
        on 10 July 2006. The WFOE is wholly-owned by Ace Fit International Limited, a wholly-owned subsidiary of TA
        Properties Sdn Bhd (“TAP”), which is in turn, a wholly-owned subsidiary of the Company.

	   (e)	 Electronic	Access	Facilities	with	Permitted	Activities	(“EAFPA”)

        Pursuant to a Bursa Malaysia Securities Berhad’s circular, all of the Group’s EAFPAs were converted into
        Branch Offices with effect from 17 July 2006.

	   (f) Launch	of	funds	by	a	subsidiary

	   	   TA Investment Management Berhad (formerly known as TA Unit Trust Management Berhad) which is a 70%
        owned subsidiary had launched TA Global Asset Allocator Fund on 12 June 2006, TA Asia Pacific Islamic Balance
        Fund on 7 November 2006 and TA European Equity Fund on 20 March 2007.

                                                                                                         	
    (g) Change	of	subsidiary’s	name,	approval	of	subsidiary	as	licensed	fund	manager	and	transfer	of	fund	
	   	 management	clients	from	a	fellow	subsidiary

	   	   On 27 March 2006, TA Unit Trust Management Berhad, the Company’s subsidiary changed its name to
        “TA Investment Management Berhad” (“TAIM”), pursuant to the approval by Securities Commission as a licensed
        fund manager pursuant to section 15A of Securities Industry Act, 1983 on 24 June 2005. This enables TAIM
        to manage its own unit trust funds and other clients’ monies. TAIM has ceased the outsourcing of fund
        management function in respect of unit trust funds under its management to a fellow subsidiary, TA Asset
        Management Sdn. Bhd. (“TAAM”) from 1 February 2006. During the current year, certain of TAAM’s fund
        management clients were transferred to be managed by TAIM pursuant to TAAM’s non-renewal of its fund
        manager licence after expiring on 4 July 2006.

    (h)	Subscription	of	shares	in	subsidiaries

        (i)    During the year, the Company subscribed for 5,442 ordinary shares of RM1 each in TAI for a total cash
                                                                                                                            ANNUAL REPORT 2007


               consideration of RM5,442. TAI also redeemed 5,442 5,000% preference shares of RM1.00 each for a total
               cash consideration of RM5,442,000 from the Company.

        (ii)   The Company also subscribed for 189,545 shares of 6,000% non cumulative redeemable preference
               shares of RM1 each at a premium of RM999 in TAP for a total cash consideration of RM189,545,000.

    (i)	 Exercise	of	Warrants	1999/2009

        Subsequent to the financial year, the Company issued 34,929,437 new shares for the cash consideration of RM1
        per new ordinary shares pursuant to the exercise of 34,929,437 warrants by warrantholders. The number of
        warrants outstanding and unexercised after the above is 537,650,025.




                                                                                           TA ENTERPRISE BERHAD
                                                                                                               (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      46.	 SEGMENTAL	INFORMATION

                              (a)	 Business	Segments:

                                   The Group is organised on a worldwide basis into six major business segments:

                                   (i)      Stockbroking and financial services - stockbroking, fund management, unit trust and derivatives trading;
                                   (ii)     Investment holding - provision of funding and investment related services;
                                   (iii)    Credit and lending - provision of finance and related services.
                                   (iv)     Property investment - investment in residential and commercial properties;
                                   (v)      Property development - development of residential and commercial properties; and
                                   (vi)     Hotel operations - operation of hotel and related services.

                              Other business segments include other inactive operations, none of which are of a sufficient size to be
                              reported separately.
                      2007	   	    		                       Stock		             	           	           	              	          	       	            	               	
                      	 	     		   	                      broking		             	    	Credit		
                      	 	     	    	                 and	financial		 Investment		       and		   Property		    	Property		    Hotel		      	            	               	
                      	 	     	    	                     	services		    	holding	 	lending	 	investment		 	development	 operations	 Others	 Elimination		 Consolidated
                      	 	     	    	                       RM’000		      RM’000		 RM’000	        RM’000		       RM’000	    RM’000	 RM’000	      RM’000		       RM’000	


                      Revenue
                      External sales                    134,413           256    10,354        41,369        94,657       73,471          -             -      354,520
                      Inter-segment sales                   159       55,498            -       4,235             63      15,398          -     (75,353)              -


                      Total revenue                     134,572       55,754     10,354        45,604        94,720       88,869          -     (75,353)       354,520


                      Result	
                      Operating results                  63,226       (3,556)    29,359        23,478        38,717       16,032      (506)             -      166,750
                      Foreign exchange
                         gains/(losses)                       96     (10,068)           -          (4)             -          58        (2)             -       (9,920)


                      Net segment results                63,322      (13,624)    29,359        23,474        38,717       16,090      (508)             -      156,830
                      Unallocated
                        corporate expenses                                                                                                                      (4,539)
 ANNUAL REPORT 2007




                      Operating profit                                                                                                                         152,291
                      Finance costs, net                                                                                                                        (9,178)
                      Share of results of
                        associates                             -             -          -         (17)             -            -        19             -             2


                      Profit before tax                                                                                                                        143,115
                      Income tax expense                                                                                                                        (9,380)


                      Profit for the year                                                                                                                      133,735
126




                      TA ENTERPRISE BERHAD
                      (194867-M)
46.	 SEGMENTAL	INFORMATION	(cont’d)
2007	   	    		                         Stock		             	           	           	              	          	       	            	               	
	 	     		   	                        broking		             	    	Credit		
	 	     	    	                   and	financial		 Investment		       and		   Property		    	Property		    Hotel		      	            	               	
	 	     	    	                       	services		    	holding	 	lending	 	investment		 	development	 operations	 Others	 Elimination		 Consolidated
	 	     	    	                         RM’000		      RM’000		 RM’000	        RM’000		       RM’000	    RM’000	 RM’000	      RM’000		       RM’000	


Assets
Segment assets                    1,173,212      111,059 326,660         815,049        190,557     273,952        320                   2,890,809
Investment in equity
   method of associates                    -             -          -      15,047              -            -      184                      15,231
Unallocated corporate
  assets                                                                                                                                    26,770


Consolidated total assets                                                                                                                2,932,810




Liabilities
Segment liabilities                 770,456       71,711       1,586     158,661         24,971        6,082          1                  1,033,468
Unallocated corporate
  liabilities                                                                                                                               28,226


Consolidated total liabilities                                                                                                           1,061,694




Other	Information
Capital expenditure                   1,341           454        127        6,443              -         817         13                      9,195
Depreciation                          3,736           803        102       14,194              -       8,799         21             -       27,655
Amortisation                            122            41           -       2,714              7            -         -             -        2,884
Impairment losses, net of
  write back                               -        (217)    (1,784)          115           125             -         -             -       (1,761)
Non-cash expenses other than
  depreciation, amortisation
  and impairment losses                (498)             - (11,121)        (2,437)             -          (3)         -             -     (14,059)
                                                                                                                                                       ANNUAL REPORT 2007




                                                                                                                  TA ENTERPRISE BERHAD
                                                                                                                                          (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      46.	 SEGMENTAL	INFORMATION	(cont’d)
                              (a)	 Business	Segments	(cont’d):

                      2006	   	    		                         Stock		             	           	           	              	          	       	            	               	
                      	 	     		   	                        broking		             	    	Credit		
                      	 	     	    	                   and	financial		 Investment		       and		   Property		    	Property		    Hotel		      	            	               	
                      	 	     	    	                       	services		    	holding	 	lending	 	investment		 	development	 operations	 Others	 Elimination		 Consolidated
                      	 	     	    	                         RM’000		      RM’000		 RM’000	        RM’000		       RM’000	    RM’000	 RM’000	      RM’000		       RM’000	

                      Revenue
                      External sales                       92,509          294       7,172       39,925       105,616       67,239         1             -       312,756
                      Inter-segment sales                   2,524      178,936           -       34,201             -       12,910       722     (229,293)             -

                      Total revenue                        95,033      179,230       7,172       74,126       105,616       80,149       723     (229,293)       312,756

                      Result
                      Operating results                    41,733       (2,363)    (2,404)       18,533        35,025        8,030      (575)             -       97,979
                      Foreign exchange
                         gains/(losses)                        (5)        7,439           -         (33)             -          90        (2)             -        7,489

                      Net segment results                  41,728         5,076    (2,404)       18,500        35,025        8,120      (577)             -      105,468
                      Unallocated corporate
                        expenses                                                                                                                                  (4,370)

                      Operating profit                                                                                                                          101,098
                      Finance costs, net                                                                                                                        (11,491)
                      Share of results of associates             -             -          -       (102)              -            -       (1)             -        (103)

                      Profit before tax                                                                                                                           89,504
                      Income tax expense                                                                                                                          (8,796)

                      Profit after taxation                                                                                                                       80,708

                      Assets	
                      Segment assets                      689,002      245,953 332,026         557,734        221,988     291,338          57             -    2,338,098
                      Investment in equity
                         method of associates                    -             -          -      15,064              -            -      165              -       15,229
                      Unallocated corporate
                         assets                                                                                                                                   28,365

                      Consolidated total assets                                                                                                                2,381,692

                      Liabilities
                      Segment liabilities                 316,069       53,102         908     172,808         20,912        4,745         19             -      568,563
 ANNUAL REPORT 2007




                      Unallocated corporate
                        liabilities                                                                                                                               24,346

                      Consolidated total liabilities                                                                                                             592,909

                      Other	Information
                      Capital expenditure                   3,963           221         66        6,618              -         707         11             -       11,586
                      Depreciation                          2,593           984         79       13,663              -      14,359         15             -       31,693
                      Amortisation                             91            36          -        3,140              7           -          -             -        3,274
                      Impairment losses, net of
                        write back                               9           47    10,822        (4,735)          (18)            -         -             -        6,125
                      Non-cash expenses other than
128




                        depreciation, amortisation
                        and impairment losses               2,427           385    46,119         7,977             27            -         7             -       56,942




                      TA ENTERPRISE BERHAD
                      (194867-M)
46.	 SEGMENTAL	INFORMATION	(cont’d)
       (b)	Geographical	Segment

	      	   Although the Group’s six major business segments are managed on a worldwide basis, they operate in six
           principal geographical areas of the world as follows:

           (i) Malaysia                   - stockbroking, investment holding, provision of funding activities, fund management
                                            and unit trust, derivatives trading, property developmen and investment;
           (ii)    Hong Kong              - stockbroking;
           (iii)   South Africa           - property investment and ceased operation as a licensed bank since 5 April 2002.
           (iv)    Canada                 - property investment (commercial properties);
           (v)     Australia              - hotel operations; and
           (vi)    British Virgin Islands - investment holding.


  	    	   	                            	       	          	                	        	 British		        	              	
	 	    	   	                            	  Hong		          	          South		        		 Virgin
	 	    	   	                    Malaysia	  Kong	 	Australia	         	Africa	 	Canada		 Islands		 Others			Consolidated	
	 	    	   	                     RM’000		 RM’000		 RM’000	          RM’000	 RM’000		 RM’000		 RM’000	           RM’000	

    2007
    External revenue              237,788     11,248      73,471       6,986    25,027           -          -        354,520


    Segment assets              2,240,998     62,954     274,306     33,932    230,259     47,074      1,286        2,890,809
    Capital expenditure             7,091      1,231         817          51          -          -         5            9,195


    2006
    External revenue              205,043      7,864      67,239       7,162    25,448           -          -        312,756


    Segment assets              1,699,358     51,290     291,655     39,066    250,062      4,912      1,755        2,338,098
    Capital expenditure             8,825      2,027         707          25          -          -         2          11,586

    The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of
    business and have been established on terms and conditions that are not materially different from that obtainable in
                                                                                                                                   ANNUAL REPORT 2007


    transactions with unrelated parties.



47.	 FINANCIAL	INSTRUMENTS	AND	RELATED	DISCLOSURES

       (a) Information about the extent and nature of the financial instruments, including significant terms and
           conditions are presented in their respective notes, where applicable.

       (b)	Interest	rate	risk

           The carrying amounts, the effective interest rates as at the balance sheet date and the remaining maturities of
           the Group’s and the Company’s financial instruments that are exposed to interest rate risk are tabled below:




                                                                                                  TA ENTERPRISE BERHAD
                                                                                                                      (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      47.	 FINANCIAL	INSTRUMENTS	AND	RELATED	DISCLOSURES	(cont’d)

                             (b)	Interest	rate	risk (cont’d)

                      	 		 	       		                     	               					          	            									Interest	bearing	     	    	       Non
                      	 	  	       	                      	     Interest		       Within	           		                 		         			   		 more	than	  Interest	             	
                      	 	  	       	                  Note	        	rate		      	1	years	 1-2	years	 	2-3	years	 	3-4	years	 4-5	years	     5	years	  Bearing		       Total
                      2007		       	                      	           %		       RM’000		 RM’000	 RM’000		 RM’000	 RM’000	                   RM’000	   RM’000		      RM’000	

                      Group
                      Fixed	rate
                      Unquoted bonds and debts
                         securities in Malaysia         10     5.8 - 6.6         -        5,124            -    10,000             -       5,156          -         20,280
                      Financial receivables             14    6.5 - 20.0   900,442            -            -         -             -           -          -        900,442
                      Trade receivables                 15    6.8 - 20.0   508,933            -            -         -             -           -    476,062        984,995
                      Fixed deposits and
                         placements                     20     3.2 - 3.5   296,977            -           -           -           -            -             -      296,977
                      Term loan                         25         4.79     (6,867)     (7,200)     (7,548)     (7,914)     (8,298)     (94,254)             -    (132,081)

                      Floating	rate
                      Amount with derivative
                         clearing house                 16     1.0 - 1.4     69,016            -           -           -           -            -            -       69,016
                      Revolving credit                  25           4.3   (15,000)            -           -           -           -            -            -     (15,000)
                      Interest-bearing client
                         and trust monies               20     2.7 - 3.2   160,201             -           -           -           -            -            -     160,201
                      Due to a substantial
                         shareholder *                  28          5.0    (49,085)            -           -           -           -            -            -     (49,085)
                      Security deposits due to
                         remisiers                      29     2.0 - 3.4   (72,323)            -           -           -           -            -            -     (72,323)

                      2006
                      Group
                      Fixed	rate
                      Unquoted bonds and debts
                         securities in Malaysia         10     4.0 - 7.4         -        5,124       4,476      2,000      10,000       16,944           -         38,544
                      Financial receivables             14    6.5 - 20.0   849,844            -           -          -           -            -           -        849,844
                      Trade receivables                 15    6.9 - 20.0   395,171            -           -          -           -            -     138,140        533,311
                      Fixed deposits and
                         placements                     20     2.8 - 3.2   495,318            -           -           -           -         -                -      495,318
 ANNUAL REPORT 2007




                      Term loan                         25         4.79     (7,199)     (7,548)     (7,914)     (8,297)     (8,700) (112,723)                -    (152,381)

                      Floating	rate
                      Amount with derivative
                         clearing house                 16     0.7 - 1.0     15,058            -           -           -           -            -            -      15,058
                      Interest-bearing client
                         and trust monies               20     2.6 - 3.1     68,327            -           -           -           -            -            -      68,327
                      Due to a substantial
                         shareholder *                  28          3.0    (43,166)            -           -           -           -            -            -     (43,166)
                      Security deposits due to
                         remisiers                      29     2.0 - 3.0   (71,380)            -           -           -           -            -            -     (71,380)
130




                      * Amount due to a substantial shareholder has no fixed repayment term and is classified as due within one year for comparison purpose only




                      TA ENTERPRISE BERHAD
                      (194867-M)
47.	 FINANCIAL	INSTRUMENTS	AND	RELATED	DISCLOSURES	(cont’d)

	   (c)	 Currency	exposure


        The net unhedged financial assets and liabilities of the Group companies that are not denominated in their
        functional currency are as follows:


	   	 At	31	January	2007:	
                                           <-------------------- Denominating	Currencies	------------------->
                                                          United
	   	   	   	   	   	     	     	   		     Ringgit		 	States		 Canadian		 Singapore	                	Other		
	   	   	   	   	   	     	     	   	     Malaysia		 Dollars		        	Dollars		   	Dollars		 currencies		       	Total	
	   	   	   	   	   	     	     	   	      RM’000		 RM’000	           RM’000		     RM’000		        RM’000		     RM’000	


        Functional	Currency
        of	Group	Companies

        Trade	receivables
        Hong Kong Dollars                     15,150           -             -            39               -     15,189

        Short	term	funds	
        Ringgit Malaysia                           -     14,559             -              2              -      14,561
        United States Dollars                      -          -            57              5             84         146
        Hong Kong Dollars                      1,150        139             -             47              -       1,336

                                               1,150     14,698            57             54             84      16,043

        Other	investments
        Ringgit Malaysia                           -           -             -              -           250         250
        United States Dollars                      -           -             -              -             2           2

                                                   -           -             -              -           252         252

        Trade	payables
        Hong Kong Dollars                     12,794          -              -              -              -     12,794
                                                                                                                             ANNUAL REPORT 2007



        Ringgit Malaysia                           -     13,625              -              -              -     13,625

                                              12,794     13,625              -              -              -     26,419

                                              29,094     28,323            57             93            336      57,903




                                                                                            TA ENTERPRISE BERHAD
                                                                                                                (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      47.	 FINANCIAL	INSTRUMENTS	AND	RELATED	DISCLOSURES	(cont’d)

                      	      (c)	 Currency	exposure (cont’d)


                      	      	 At	31	January	2006:	
                                                                    <-------------------- Denominating	Currencies	------------------->
                                                                                    United
                      	      	     	   	   	   	    	      	   		    Ringgit		 	States		 Canadian		 Singapore	                 	Other		
                      	      	     	   	   	   	    	      	   	    Malaysia		 Dollars		        	Dollars		   	Dollars		 currencies		       	Total	
                      	      	     	   	   	   	    	      	   	     RM’000		 RM’000	           RM’000		     RM’000		        RM’000		     RM’000	


                                   Functional	Currency
                                   of	Group	Companies

                                   Trade	receivables
                                   Hong Kong Dollars                    1,757            -             -            37               -      1,794

                                   Short	term	funds
                                   Ringgit Malaysia                        -        1,308         6,005              8             19       7,340
                                   United States Dollars                   -            -           474          4,183             72       4,729
                                   Hong Kong Dollars                     519          144             -             48              -         711
                                   Philippine Peso                         -          221             -              -              -         221

                                                                          519       1,673         6,479          4,239             91      13,001

                                   Other	investments
                                   Ringgit Malaysia                          -           -             -              -           250         250
                                   United States Dollars                     -           -             -              -             2           2

                                                                             -           -             -              -           252         252

                                   Trade	payables
                                   Hong Kong Dollars                     232            -              -              -              -        232
                                   Ringgit Malaysia                        -        1,199              -              -              -      1,199
 ANNUAL REPORT 2007




                                                                         232        1,199              -              -              -      1,431

                                                                        2,508       2,872         6,479          4,276            343      16,478
132




                      TA ENTERPRISE BERHAD
                      (194867-M)
47.	 FINANCIAL	INSTRUMENTS	AND	RELATED	DISCLOSURES	(contd.)

    (d)	Fair	values

	   	   The aggregate net fair values of financial assets and financial liabilities of the Group and the Company which
        are not carried at fair value on the balance sheets are as follows:

	   	   	   	   	   	      		     	   	            	               	           Group		           	Company	
	   	   	   	   	   	      	      	   	            	                    C
                                                                        	 arrying		         	 Carrying
	   	   	   	   	   	      	      	   	            	                    A
                                                                        	 mount		 Fair	Value		 Amount	 Fair	Value	
	   	   	   	   	   	      	      	   	            	                    R
                                                                        	 M’000		   RM’000		 RM’000		 	 RM’000	

        Financial	Assets


        At 31 January 2007:
        Long term other investments (Note 10)                            34,182         44,764     126,998     127,362
        Due from subsidiaries repayable on demand (Note 17)                    -              -    226,166              *
        Subordinated loan to a subsidiary (Note 17)                            -              -     13,000      13,006
        Short term investments (Note 19)                                   6,720         6,980            -             -


        At 31 January 2006:
        Long term other investments (Note 10)                            64,973         70,082     145,475     145,907
        Due from subsidiaries repayable on demand (Note 17)                    -              -     76,868              *
        Subordinated loan to a subsidiary (Note 17)                            -              -      7,000        7,865
        Short term investments (Note 19)                                   2,721         4,361            -             -


        Financial		Liabilities	


        At 31 January 2007:
        Long term loan (Note 25)                                        125,214       122,471             -             -
        Due to subsidiaries (Note 31)                                          -              -      5,449              *    ANNUAL REPORT 2007


        At 31 January 2006:
        Long term loan (Note 25)                                        145,182       141,723             -             -
        Due to subsidiaries (Note 31)                                          -              -      6,162              *

        * It was not practicable to estimate the fair values of the amounts due from/to subsidiaries that are included
          in current assets and liabilities due principally to a lack of fixed terms of repayment in the transactions
          entered into by the parties involved and a reasonable estimate of fair values could not be made without
          incurring excessive costs. However, the Company does 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.




                                                                                            TA ENTERPRISE BERHAD
                                                                                                                (194867-M)
                      NOTES TO THE FINANCIAL STATEMENTS
                      - 31 JANUARY 2007




                      47.	 FINANCIAL	INSTRUMENTS	AND	RELATED	DISCLOSURES	(contd.)

                             (d)	Fair	values	(cont’d)

                                   The following methods and assumptions are used to estimate the fair values of the following classes of
                                   financial instruments:

                                   (i)      Long term and short term investments
                                            The fair values of publicly traded instruments are estimated based on quoted market prices. For other
                                            instruments for which there are no quoted market prices, a reasonable estimate of fair value has been
                                            calculated based on the expected cash flows or the underlying net asset base for each investment.

                                   (ii)     Financial receivables
                                            The fair values of financial receivables are the estimated recoverable amounts from the respective loans.
                                            For non-performing loans, the Group has taken into account the values of their collateral, latest updates
                                            from settlement negotiations with customers and the latest outcome from legal proceedings initiated.

                                   (iii)    Trade and other receivables (excluding prepayments and deferred leasing costs) and payables
                                            (excluding withheld amounts pending the outcome of legal actions taken)

                                            The carrying amounts of trade receivables and payables are subject to normal trade credit terms which
                                            are short term in nature and thus approximate their fair values. The carrying amounts of other receivables
                                            (excluding prepayments and deferred leasing costs) and payables (excluding withheld amounts
                                            pending the outcome of legal actions taken) are reasonable estimates of fair values because of their
                                            short maturities.

                                   (iv)     Subordinated loan to a subsidiary
                                            The fair value of subordinated loan to a subsidiary was estimated using discounted cash flow method
                                            based on the expected repayment timing and amount of future cash flows. The discount factor used
                                            was 7.00% (2006: 2.66%) per annum, which was based on the prevailing market rates.

                                   (v)      Amount due to directors and remisiers
                                            The carrying amounts of the amount due to directors and remisiers approximate their fair values as
                                            these amounts have no fixed terms of repayment and can be repayable on demand.

                                   (vi)     Short term funds and borrowings
                                            The carrying amounts of short term funds and borrowings approximate their fair value due to the
                                            relatively short term maturities of these instruments.

                                   (vii)    Term loans
 ANNUAL REPORT 2007




                                            The fair values of term loans are estimated using discounted cash flow method based on the expected
                                            timing of amounts payable at the applicable rates of interest levied over the tenure of these loans.

                                   (viii)   Provision for liabilities
                                            Provision for employee benefits is deemed to approximate its fair value as this provision is made in
                                            respect of employees’ entitlement which is expected to realise within one year.

                                   (ix)     Contingent liabilities
                                            There is no practical way to estimate the fair value of the contingent liabilities arising from the litigation
                                            as disclosed in Note 44 as the likelihood of any material liabilities arising cannot be ascertained at this
                                            juncture. The directors consider the likelihood of these contingent liabilities forthcoming as remote.
134




                      TA ENTERPRISE BERHAD
                      (194867-M)
48.	 COMPARATIVES

    The following comparative figures for the Group and Company have been reclassified to conform with current
    year’s presentation:
	   	 	 	 	 	            	  	 	                  	           	              	                  		 	        As	
	   	 	 	 	 	            	  	 	                  	           	           As	                   	 	 previously	
	   	 	 	 	 	            	  	 	                  	           	     restated		    Adjustments	 	       	stated	
	   	 	 	 	 	            	  	 	                  	           	      RM’000	             RM’000	 	 RM’000	

        Group	

        Consolidated	Income	Statement
        Other income                                                          57,209            5,281          62,490
        Cost of properties sold                                             (67,458)            (345)        (67,803)
        Hotel operation costs (exclude personnel costs)                     (21,636)         (12,910)        (34,546)
        Depreciation                                                        (31,693)              (59)       (31,752)
        Other expenses                                                      (73,566)            8,033        (65,533)

                                                                           (137,144)                 -      (137,144)


	   	   	   	   	   	    	    	   	                	               	               	               		    	         As	
	   	   	   	   	   	    	    	   	                	               	             As	               	     	 previously	
	   	   	   	   	   	    	    	   	                	               	       restated		   Adjustments	     	    	stated	
	   	   	   	   	   	    	    	   	                	               	        RM’000	          RM’000	     	 RM’000	

        Company

        Profit before taxation                                               93,823             3,806         97,629
        Impairment loss on investment in subsidiaries                        37,507           (3,806)         33,701

                                                                            131,330                  -       131,330



        Cash flow statement of the Company had been adjusted for the effects of adopting FRS 127 as disclosed
        in Note 3.1(f ).
                                                                                                                           ANNUAL REPORT 2007




49.	 CURRENCY

    All amounts are stated in Ringgit Malaysia, unless stated otherwise.




                                                                                          TA ENTERPRISE BERHAD
                                                                                                              (194867-M)
                      LIST OF PROPERTIES HELD BY
                      TA ENTERPRISE BERHAD GROUP
                      AS AT 31 JANUARY 2007



                      	    Location                           Description               Existing	Use        Date	of	      Approximate	 Book	Value	
                                                                                                            Acquisition   Age	of	      (ACC)																		
                                                                                                                          Buildings	   RM
                      	    IN	MALAYSIA                                                                                    (years)

                      1.   Lot No 653, Mukim of Kluang        Freehold,                 Land Held for       18/11/1994            -               7,520,991
                                                              Mixed Development         Development
                                                              Land
                                                              Area : 4,145,170 sq. ft

                      2.   Lot 2463, GM1783, Mukim of         Freehold                  Land Held for       28/11/1994            -               2,031,294
                           Batu, District of Kuala Lumpur     Agricultural Land         Development
                                                              Area : 122,491 sq. ft.

                      3.   2/3 of Lot 1580, EMR. 6715,        Freehold                  Land Held for       31/10/1994            -               2,703,048
                           Mukim of Batu, District of Kuala   Agricultural Land         Development
                           Lumpur                             Area : 131,580 sq. ft.

                      4.   1/3 of Lot 1580, Geran Mukim       Freehold                  Land Held for       07/02/2005            -               4,430,582
                           No 3602, Mukim of Batu,            Agricultural Land         Development
                           District of Kuala Lumpur           Area : 65,792.10 sq. ft

                      5.   P T No 981, H.S.(D)1690, Mukim     Leasehold                 Land Held for       03/06/1994            -                 255,441
                           of Tras, Daerah Raub, Pahang       (Expiring on 4/12/2080)   Development
                                                              Residential Land
                                                              Area : 85,486 sq. ft.

                      6.   Idaman Residence                   Freehold                  Residential         25/05/1993            -             30,714,664
                           Lot 114 to 117, G.36026 to         Residential Land          Condominium         03/06/1993
                           36029, Section 58, Mukim and       Area : 65,229 sq. ft.     Project under
                           District of Kuala Lumpur                                     Development

                      7.   Lot 25 & 26, Section 58, Mukim     Freehold                  Land Held for       31/07/1991            -             19,971,848
                           and District of Kuala Lumpur       Commercial Land           Development
                                                              Area : 43,497 sq. ft.

                      8.   Lot 77, Section 58, Mukim and      Freehold                  Land Held for       01/12/1995            -               7,178,502
                           District of Kuala Lumpur           Residential Land          Development
                                                              Area : 11,172 sq. ft.

                      9.   Geran 27052, No Lot 174            Freehold                  Land Held for       19/10/2004            -             37,172,860
                           Seksyen 57,                        Residential Land          Development
                           Bandar Kuala Lumpur                Area : 45,246 sq. ft.

                      10. Damansara Idaman /                  Freehold                  Residential         22/01/1996            -             65,038,871
                          Idaman Villas                       Mixed Development         Bungalow & Semi-D
                          Grant No. 5963, Lot 2806,           Land                      Projects under
 ANNUAL REPORT 2007




                          Mukim of Sungai Buloh,              Area : 844,395 sq. ft.    Development
                          District of Petaling

                      11. Lot no 85-H2, No 12A,               Freehold                  Bungalow Held       31/01/2007            1               1,446,481
                          Lorong PJU 1A/50B, Lorong           1 unit Bungalow           for Sale
                          Jati2, Damansara Idaman             Area : 8,930 sq. ft

                      12. PT11253 - 11258, Mukim and          Freehold                  Shophouses Held     09/08/1993            6                 681,583
                          District of Klang,                  6 units Shophouses        for Sale/Rent.
                          TA Industrial Park                  Area : 9,552 sq. ft

                      13. PT 7346, 7347, 7348, 7349           Freehold                  Land Held for       10/03/1992            -               3,648,896
                          Mukim of Serendah,                  Industrial Land           Resale
136




                          District of Ulu Selangor            Area : 387,259 sq. ft.

                      14. PT 7131, 7132, 7136, 7137           Freehold                  Land Held for       10/03/1992            -               3,364,181
                          Mukim of Serendah,                  Industrial Land           Resale
                          District of Ulu Selangor            Area : 354,768 sq. ft.



                      TA ENTERPRISE BERHAD
                      (194867-M)
	   Location                        Description                Existing	Use        Date	of	       Approximate	   Book	Value	
                                                                                   Acquisition    Age	of	        (ACC)																		
                                                                                                  Buildings	     RM
	   IN	MALAYSIA                                                                                   (years)


15. PT 7135, 7138, 7139,            Freehold                   Land Held for       29/08/1992          -              2,457,085
    Mukim of Serendah,              Industrial Land            Resale
    District of Ulu Selangor        Area : 260,800 sq. ft.

16. Geran 15376, Lot 421,           Freehold                   Land Held for       27/07/2005          -              3,623,198
    Mukim Kuala Lumpur              Residential Land           Development
                                    Area : 120,095 sq. ft

17. HSD 113435 PT 34081 & HSD       Freehold                   Land Held for       20/05/2005          -           82,612,802
    113436 PT34082,                 Commercial Land            Development
    Mukim Sungai Buloh,             Area : 937,149 sq. ft
    Daerah Petaling,
    Negeri Selangor

18. HSD 11346 - HSD 113433 &        Freehold                   Land Held for       20/07/2005          -         113,417,488
    PT34072 - PT34079,              Commercial Land            Development
    Mukim Sungai Buloh,             Area : 1,156,713 sq. ft
    Daerah Petaling,
    Negeri Selangor

19. Geran 27879, 26388, 26389,      Freehold                   Land Held for       16/09/2005          -           83,768,052
    28503-28505, 28508-28510,       Commercial Land            Development
    37038-37040, 37034, 37037 &     Area : 129,881 sq. ft
    Lot 624, in Seksyen 67, Mukim
    and Bandar of Kuala Lumpur

20. Lot No 097565, Mukim            Leasehold                  Disaster            29/05/1998          12                214,067
    Hulu Kinta, Daerah Kinta        (Expiring on 17/11/2079)   Recovery Site
                                    Shop-Office
                                    Area : 3,684 sq. ft.

21. H S (D) 12959,                  Freehold                   Property Held for   11/01/1995          4                 193,855
    P T No 2910, Mukim of           1 unit Townhouse           Internal Use
    Pasir Panjang,                  Built-up Area :
    District of Port Dickson        1,367 sq. ft.

22. Lot 11502, H.S(D) 52730,        Freehold                   Property with       18/08/1994          13                773,808
    Mukim of Damansara,             3 Storey Shop-Office       Rental Income
    District of Petaling            Built-up Area :
                                    4,000 sq. ft.
                                                                                                                                           ANNUAL REPORT 2007


23. HS(D) 88660, PT No 13638,       Freehold                   Properties for      06/04/1995          10             8,784,735
    Mukim of Damansara,             3 Blocks of 7 Storey       Internal Use with
    District of Petaling,           Office.                    Rental Income
    Subang Business Centre          Built-up Area : 48,173
                                    sq. ft.

24. Lot PT 22, HS(D) 63, Mukim      Leasehold                  TA Official Guest   24/11/1993          9           13,695,038
    and District of Kuala Lumpur    (Expiring on 24/3/2073)    House
                                    Residential Land &
                                    Building
                                    Area : 55,694 sq. ft.

25. Lot 37716 PN 10009 , Mukim      Leasehold                  Property with       30/03/1994          22             1,131,667
    and District of Kuala Lumpur    (Expiring on 26/3/2073)    Rental Income
                                    Residential Land &
                                    Building
                                    Area : 32,726 sq. ft.




                                                                                                 TA ENTERPRISE BERHAD
                                                                                                                    (194867-M)
                      LIST OF PROPERTIES HELD BY
                      TA ENTERPRISE BERHAD GROUP
                      AS AT 31 JANUARY 2007



                      	    Location                           Description                 Existing	Use           Date	of	      Approximate	   Book	Value	
                                                                                                                 Acquisition   Age	of	        (ACC)																		
                                                                                                                               Buildings	     RM
                      	    IN	MALAYSIA                                                                                         (years)


                      26. Menara TA One, Lot 1261,            Freehold                    TA Corporate Head      10/06/1998         10         177,093,608
                          G.39187, Section 57,                37 Storey Office Building   Office and with
                          Mukim and District of               Built-up Area : 418,502     Rental Income
                          Kuala Lumpur                        sq. ft.
                                                              Land Area : 44,057
                                                              sq. ft.

                      	    OUTSIDE	MALAYSIA


                      27. Terasen Centre                      Freehold                    Investment             11/08/1995         15         192,931,283
                          Lot E, Block 7, District Lot 185,   24 Storey Office &          Property with
                          Land District 36, Plan 22865,       Commercial Building         Rental Income
                          West Georgie,                       Built-up area : 400,000
                          Vancouver, Canada                   sq. ft.

                      28. E-1204, Phip. Stock Exch.           Freehold                    Principal Business     10/01/1995         14                165,553
                          Center, Exchange Road,              Office Units                Office of Phil. TA
                          Ortigas Center Pasig City,          Area : 2,895 sq. ft.        Sec, Inc, and Rental
                          Metro Manila, Philippines                                       Income

                      29. 1003 D, Renaissance Tower           Freehold                    Property with          19/09/1995         16                141,264
                          Condominium                         Residential                 Rental Income
                          Meralco Avenue, Ortigas             Condominium
                          Center Pasig City,                  Area : 2,281 sq. ft
                          Metro Manila, Philippines

                      30. Radisson Plaza Hotel                Freehold                    Property with          08/12/1997         7          252,162,905
                          66, Pitt Street, Sydney,            363 Room, 5 Star Hotel      Rental Income
                          Australia                           Build-up Area: 231,299
                                                              sq. ft.
                                                              Land Area: 18,510
                                                              sq. ft.

                      31. Units 1203 & 1204A,                 Government Lease            Principal Business     03/07/2001         19             9,903,840
                          12th Floor, Tower I ,               (Expiring on 14/2/2059)     Office of TA Sec
                          Lippo Centre, 89 Queensway,         Commercial Building         (HK) Limited
                          Hong Kong.                          Area: 4,045 sq. ft.

                      32. Kunming Dianchi Golf                Lakeview Villa              Uncompleted Unit       15/11/2005         2              1,857,369
                          Community. G187,                    Built-up area: 4,441.42
 ANNUAL REPORT 2007




                          Type 7C Yunnan, China               sq. ft

                      33. No 131, Baita road, Kunming,        3 Huido International       Uncompleted            29/12/2005         1              1,181,118
                          Yunnan, China                       Office Units                Office Units
                                                              Built-up area: 4,440
                                                              sq. ft.

                      34. 160, Jan Smut                       Freehold                    Property Held for      25/10/1996         8            32,787,088
                          ERF 180, Portion 2 of ERF 161,      Commercial Building         Sale
                          Portion 2 of ERF 162 and            Area : 67,024 sq. ft.
                          ERF 235, Rosebank Township.
                          Registration Division I.R.
                          Province of Gauteng,
138




                          Republic of South Africa.

                      TOTAL                                                                                                         RM1,165,055,063




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                 ANALYSIS OF SHAREHOLDINGS
                                                                                                   AS AT 15 MAY 2007




Authorised Share Capital            :   RM4,000,000,000.00
Issued and paid-up capital          :   RM1,342,939,539.00
Class of Shares                     :   Ordinary Shares of RM1.00 each
Voting Rights                       :   One vote per share
Number of Shareholders              :   34,824


	    	 	 	 	 	               	      	   No	of	shareholders	/			 %	of	shareholders/		                     No	of	       %	of	issued	
Size	of	holdings	 	          	      	   	        depositors	            depositors		               shares	held		          capital	


1 - 99                                                   380                         1.0912             18,162             0.0014
100 – 1,000                                             7,390                       21.2210          7,121,791             0.5303
1,001 – 10,000                                        21,909                        62.9135         95,265,327             7.0938
10,001 - 100,000                                        4,760                       13.6687        130,074,802             9.6858
100,001 - to less than 5% of issued shares               384                         1.1027        676,746,457            50.3929
    5% and above of issued shares                                1                   0.0029        433,713,000            32.2958


Total                                                 34,824                       100.0000       1,342,939,539          100.0000




SUBSTANTIAL	SHAREHOLDERS	AS	PER	THE	REGISTER	OF	SUBSTANTIAL	SHAREHOLDERS

Name	 	          	   	                                       	              		No	of	shares	           %	of	issued	share	capital
	  	 	           	   	                                       	             Direct	    Indirect

Datuk Tiah Thee Kian                                                 459,478,200              -                           34.2144


Note	:-
433,713,000 shares held through TASEC Nominees (Tempatan) Sdn Bhd
                                                                                                                                       ANNUAL REPORT 2007


DIRECTORS’	INTERESTS	IN	SHARES	IN	THE	COMPANY	OR	IN	RELATED	CORPORATION

                                                                         Direct	                                Deemed
	        	   	   	   	   	   	      	   	          No.	of	shares	                       %	         No.	of	shares	               %


Datin Tan Kuay Fong                                    3,061,000                   0.22793                        -               -
Zainab Binti Ahmad                                                   -                   -                        -               -
Dato’ Mohamed Bin Abid                                   274,900                   0.02047                        -               -
Peter U Chin Wei                                                     -                   -                        -               -
Jory Leong Kam Weng                                                  -                   -                        -               -
Christopher Koh Swee Kiat                                    16,000                0.00119                        -               -




                                                                                                     TA ENTERPRISE BERHAD
                                                                                                                          (194867-M)
                      ANALYSIS OF SHAREHOLDINGS
                      AS AT 15 MAY 2007 (cont’d)




                      LIST	OF	TOP	30	SHAREHOLDERS	AS	AT	15	MAY	2007	

                      	    	 	 	        	   	       	    	   	                  	             	      	     Normal	      	Holdings	
                      No.	 Name		       	   	       	    	   	                  	             	      	    Holdings	    Percentage	

                      1      TASEC Nominees (Tempatan) Sdn Bhd                                           433,713,000      32.2958
                             Tiah Thee Kian

                      2      TA Nominees (Asing) Sdn Bhd                                                  65,091,000       4.8469
                             Fleet Investments Management Limited

                      3      TASEC Nominees (Asing) Sdn Bhd                                               55,275,000       4.1160
                             TA Securities (HK) Ltd for Delroy Investment Holdings Limited

                      4      Cartaban Nominees (Asing) Sdn Bhd                                            48,000,000       3.5742
                             State Street Australia Fund UAJB for Unifund (HISG as Trustee)

                      5      TASEC Nominees (Asing) Sdn Bhd                                               44,714,600       3.3296
                             TA Securities (HK) Ltd for Globalbase Enterprise Ltd

                      6      TASEC Nominees (Asing) Sdn Bhd                                               40,068,800       2.9837
                             TA Securities (HK) Ltd for Goldcape International Limited

                      7      Permodalan Nasional Berhad                                                   33,000,000       2.4573

                      8      Citigroup Nominees (Asing) Sdn Bhd                                           31,669,292       2.3582
                             UBS AG for Prism Offshore Fund Ltd

                      9      Tiah Thee Kian                                                               25,765,200       1.9186

                      10     HSBC Nominees (Asing) Sdn Bhd                                                16,831,092       1.2533
                             Exempt AN for JPMorgan Chase Bank, National Association (U.A.E.)

                      11     HSBC Nominees (Asing) Sdn Bhd                                                16,696,000       1.2432
                             BNY Brussels for Melchior Greater China Opportunities Fund

                      12     TASEC Nominees (Asing) Sdn Bhd                                               15,421,200       1.1483
                             Fortis Private Banking Singapore Limited For Savern Finance Limited
 ANNUAL REPORT 2007




                      13     HSBC Nominees (Asing) Sdn Bhd                                                14,483,100       1.0785
                             BNY Brussels for Queensland Investment Corporation

                      14     HSBC Nominees (Asing) Sdn Bhd                                                11,245,200       0.8374
                             Exempt AN for Morgan Stanley & Co. Incorporated

                      15     Citigroup Nominees (Asing) Sdn Bhd                                           10,510,242       0.7826
                             UBS AG for Prism Partners QP LP
140




                      16     HSBC Nominees (Asing) Sdn Bhd                                                10,180,500       0.7581
                             Exempt AN for JPMorgan Chase Bank, National Association (Netherlands)




                      TA ENTERPRISE BERHAD
                      (194867-M)
	    	 	 	      	    	      	     	   	               	                	         	      Normal	       	Holdings	
No.	 Name		     	    	      	     	   	               	                	         	     Holdings	     Percentage	

17   Citigroup Nominees (Asing) Sdn Bhd                                               10,119,100         0.7535
     CBNY for DFA Emerging Markets Fund

18   Cartaban Nominees (Asing) Sdn Bhd                                                 8,942,500         0.6659
     Investors Bank and Trust Company for Ishares, Inc.

19   TASEC Nominees (Asing) Sdn Bhd                                                    8,294,100         0.6176
     TA Securities (HK) Ltd for Jeffrey Smith

20   HSBC Nominees (Asing) Sdn Bhd                                                     7,454,900         0.5551
     TNTC for Government of Singapore Investment Corporation Pte Ltd

21   Citigroup Nominees (Asing) Sdn Bhd                                                6,876,883         0.5121
     UBS AG for Prism Partners LP

22   Malaysia Nominess (Tempatan) Sendirian Berhad                                     6,500,000         0.4840
     Great Eastern Life Assurance (Malaysia) Berhad (Par 1)

23   HSBC Nominees (Asing) Sdn Bhd                                                     5,813,500         0.4329
     HSBC-FS for Legg Mason Southeast Asia Special Situations Trust (201061)

24   Cartaban Nominees (Asing) Sdn Bhd                                                 5,048,900         0.3760
     State Street London Fund JY74 for The Pacific Basin Equity Fund (RIC PLC)

25   HLG Nominee (Tempatan) Sdn Bhd                                                    4,820,000         0.3589
     PB Trustee Services Berhad for HLG Growth Fund

26   Citigroup Nominees (Asing) Sdn Bhd                                                3,938,200         0.2932
     CBNY for DFA Emerging Markets Small Cap Series

27   Citigroup Nominees (Asing) Sdn Bhd                                                3,800,000         0.2830
     CB LDN for Banco Popolare Di Bergamo Prumerica SGR
                                                                                                                      ANNUAL REPORT 2007



28   Citigroup Nominees (Asing) Sdn Bhd                                                3,500,000         0.2606
     UBS AG for EB Asia Absolute Return Master Fund Limited

29   HSBC Nominees (Asing) Sdn Bhd                                                     3,481,000         0.2592
     BBH And Co. Boston for Vanguard Emerging Markets Stock Indexfund

30   Amanah Raya Nominees (Tempatan) Sdn Bhd                                           3,418,400         0.2545
     Public Index Fund

     Total                                                                           954,671,709        71.0882




                                                                                           TA ENTERPRISE BERHAD
                                                                                                         (194867-M)
                      ANALYSIS OF WARRANTHOLDINGS
                      FOR WARRANTS 1999/2009
                      AS AT 15 MAY 2007



                      No. of Warrants in issue         :   537,650,025
                      Exercise Price of Warrants       :   RM1.00 per new ordinary share throughout the entire tenure of the Warrants
                      Voting Rights                    :   One vote per warrant
                      Number of warrantholders         :   19,390


                      	    	 	 	 	 	               	   	   	             No	of		                    %	of		             No	of	       %	of	issued	
                      Size	of	holdings	 	          	   	   	    warrantholders		          warrantholders	      warrants	held		          capital	


                      1 - 99                                                   434                    2.2383          18,552             0.0034
                      100 – 1,000                                            2,965                   15.2914        2,689,489            0.5002
                      1,001 - 10,000                                        11,591                   59.7782      56,388,458            10.4879
                      10,001 - 100,000                                       3,845                   19.8298     127,701,319            23.7518
                      100,001 - to less than 5% of issued warrants             554                    2.8571     250,852,207            46.6572
                      5% and above of issued warrants                            1                    0.0052     100,000,000            18.5995


                      Total                                                 19,390                  100.0000     537,650,025           100.0000




                      DIRECTORS’	INTERESTS	IN	WARRANTS	IN	THE	COMPANY	OR	IN	RELATED	CORPORATION


                                                                                          Direct	                             Deemed
                      	        	   	   	   	   	   	   	   	             No.	of	shares	                  %	      No.	of	shares	              %


                      Datin Tan Kuay Fong                                     800,000               0.14879                     -             -
                      Zainab Binti Ahmad                                      724,500               0.13475                     -             -
                      Dato’ Mohamed Bin Abid                                  200,000               0.03719                     -             -
                      Peter U Chin Wei                                               -                    -                     -             -
                      Jory Leong Kam Weng                                            -                    -              5,000          0.00093
                      Christopher Koh Swee Kiat                                      -                    -                     -             -
 ANNUAL REPORT 2007
142




                      TA ENTERPRISE BERHAD
                      (194867-M)
LIST	OF	TOP	30	WARRANTHOLDERS	AS	AT	15	MAY	2007	

	    	 	 	 	 	              	     	   	                 	             	             	     Normal	       	Holdings	
No.	 Name	Normal	           	     	   	                 	             	             	    Holdings	     Percentage	

1    TASEC Nominees (Tempatan) Sdn Bhd                                                  100,000,000        18.5994
     Tiah Thee Kian

2    TASEC Nominees (Asing) Sdn Bhd                                                      14,615,100         2.7183
     TA Securities (HK) Ltd for Jeffrey Smith

3    Amanah Raya Nominees (Tempatan) Sdn Bhd                                              7,071,400         1.3152
     Public Growth Fund

4    Amanah Raya Nominees (Tempatan) Sdn Bhd                                              6,740,000         1.2536
     Public Equity Fund

5    Mayban Nominees (Tempatan) Sdn Bhd                                                   6,390,000         1.1885
     Mayban Trustees Berhad for Public Regular Savings Fund(N14011940100)

6    Mayban Nominees (Tempatan) Sdn Bhd                                                   4,950,000         0.9207
     Mayban Trustees Berhad for Public Industry Fund (N14011930270)

7    Mayban Nominees (Tempatan) Sdn Bhd                                                   4,790,000         0.8909
     Mayban Trustees Berhad for Public Aggressive Growth Fund (N14011940110)

8    BLHB Trustee Berhad                                                                  4,656,000         0.8660
     Public Regional Sector Fund

9    Ke-Zan Nominees (Asing) Sdn Bhd                                                      4,572,400         0.8504
     Kim Eng Securities Pte. Ltd for Exquisite Holdings Limited

10   ECM Libra Avenue Nominees (Asing) Sdn Bhd                                            4,384,300         0.8154
     DMG & Partners Securities Pte Ltd for Keen Capital Investment Ltd (N2-60391)

11   Mayban Nominees (Tempatan) Sdn Bhd                                                   3,930,000         0.7310
     Mayban Trustees Berhad for Public Balanced Fund (N14011550210)
                                                                                                                        ANNUAL REPORT 2007



12   Public Nominees (Tempatan) Sdn Bhd                                                   3,780,000         0.7030
     Pledged Securities Account for Chan Siong Chong (E-BPT)

13   Mayban Nominees (Asing) Sdn Bhd                                                      3,500,000         0.6510
     DBS Bank for Bloomswick Limited (230089)

14   Irene Yap Yin Fei                                                                    2,647,700         0.4924

15   Mayban Securities Nominees (Tempatan) Sdn Bhd                                        2,573,000         0.4786
     Pledged Securities Account for Ho Sey Chen (REM 611)




                                                                                             TA ENTERPRISE BERHAD
                                                                                                           (194867-M)
                      ANALYSIS OF WARRANTHOLDINGS
                      FOR WARRANTS 1999/2009
                      AS AT 15 MAY 2007 (cont’d)



                      	    	 	 	 	 	                	    	   	                 	             	     	       Normal	     	Holdings	
                      No.	 Name	Normal	             	    	   	                 	             	     	      Holdings	   Percentage	

                      16     Amanah Raya Nominees (Tempatan) Sdn Bhd                                      2,450,000       0.4557
                             PB Growth Fund

                      17     CIMSEC Nominees (Asing) Sdn Bhd                                              2,436,033       0.4531
                             Exempt AN for CIMB-GK Securities Pte Ltd (Retail Clients)

                      18     CIMSEC Nominees (Asing) Sdn Bhd                                              2,300,000       0.4278
                             CIMB Bank Berhad (ETP)

                      19     HDM Nominees (Tempatan) Sdn Bhd                                              2,150,000       0.3999
                             Pledged Securities Account for Kee Boon Yau (M04)

                      20     Amanah Raya Nominees (Tempatan) Sdn Bhd                                      2,146,000       0.3991
                             Public Far-East Select Fund

                      21     Ke-Zan Nominees (Tempatan) Sdn Bhd                                           2,044,000       0.3802
                             Kim Eng Securities Pte. Ltd for Sin Khuan Oi

                      22     Ke-Zan Nominees (Asing) Sdn Bhd                                              2,000,000       0.3720
                             Kim Eng Securities Pte. Ltd (38890)

                      23     Ke-Zan Nominees (Asing) Sdn Bhd                                              2,000,000       0.3720
                             Kim Eng Securities Pte. Ltd for The Nassim Fund

                      24     HDM Nominees (Asing) Sdn Bhd                                                 1,900,000       0.3534
                             Lim & Tan Securities Pte. Ltd for Chng Nai Wee

                      25     HDM Nominees (Asing) Sdn Bhd                                                 1,881,200       0.3499
                             DBS Vickers Secs (S) Pte. Ltd for Rin Nan Yoong

                      26     BHLB Trustee Berhad                                                          1,870,000       0.3478
                             Lee Chiah Cheang

                      27     HDM Nominees (Asing) Sdn Bhd                                                 1,800,000       0.3348
                             UOB Kay Hian Pte. Ltd for Koh Lee Ling (Margin)
 ANNUAL REPORT 2007




                      28     BHLB Trustee Berhad                                                          1,600,500       0.2977
                             Lee Chiah Cheang

                      29     Citigroup Nominees (Asing) Sdn Bhd                                           1,500,000       0.2790
                             Bear Stearns Securities Corp for Longview Investment Associates LLC

                      30     Amanah Raya Nominees (Tempatan) Sdn Bhd                                      1,470,000       0.2734
                             PB Asia Equity Fund
144




                      	      Total	 	   	   	       	    	   	                 	             	     	   204,147,633	      37.9704




                      TA ENTERPRISE BERHAD
                      (194867-M)
                                                                                                          FORM OF PROXY
                                                                                                                           No. of Shares Held


              Incorporated in Malaysia




I/We __________________________________________________(name of shareholder as per NRIC, in capital letters)

NRIC No./ID No./Company No. ____________________________ (new)_________________________________ (old)

of __________________________________________________________________________________(full address)

being a member(s) of TA ENTERPRISE BERHAD, hereby appoint ____________________________________________

(name of proxy as per NRIC, in capital letters) NRIC No. _______________________(new)____________________(old)

of __________________________________________________________________________________(full address)

or failing him/her _____________________________________________(name of proxy as per NRIC, in capital letters)

NRIC No. ___________________________(new) ___________________________(old) of ______________________

___________________________________________________________________(full address) as my/our proxy
to vote for me/us on my/our behalf at the Seventeenth Annual General Meeting of the Company to be held at the
Auditorium, 10th Floor, Menara TA One, 22, Jalan P. Ramlee, 50250 Kuala Lumpur on Wednesday, 27 June 2007 at 10.00
a.m. and at each and every adjournment thereof.

My/our proxy is to vote as indicated below:

  RESOLUTIONS	                                                                                       	                           FOR	             AGAINST
  1. Adoption of Reports and Financial Statements                                                    Resolution 1
  2. Approval of First and Final Dividend                                                            Resolution 2
  3. Re-election of Directors :
         a.   Dato’ Mohamed Bin Abid                                                                 Resolution 3a
         b. Mr Peter U Chin Wei                                                                      Resolution 3b
  4. Approval of Directors’ Fees                                                                     Resolution 4
  5. Re-appointment of Auditors                                                                      Resolution 5
  6. Authority for Directors to issue shares pursuant to
     Section 132D of the Companies Act, 1965                                                         Resolution 6

  7. Proposed amendments to Articles of Association of the Company Resolution 7

(Please indicate with an “X” in the spaces provided how you wish your vote to be cast. If you do not do so, the proxy will vote or
abstain from voting at his/her discretion)
                                                                                           For	 appointment	 of	 two	 proxies,	 percentage	 of	
                                                                                           shareholdings	to	be	represented	by	the	proxies:
                                                                                                                                                                      A N N U A L R E P O R T 2A N N U A L R E P O R T 2 0 0 7




                                                                                                                      No. of shares               Percentage
                                                                                           Proxy 1                                                             %
Signature/Common Seal                                                                      Proxy 2                                                             %
Date :                                                                                     Total                                                          100%

Notes:
1. A member entitled to attend and vote is entitled to appoint a proxy or proxies (but not more than two) to attend and vote at this Meeting in his stead. A proxy
                                                                                                                                                                                               007




   may but need not be a member of the Company.
2. This Form of Proxy, in the case of an individual, shall be signed by the appointor or his attorney and in case of a corporation, shall be given under its common
   seal or signed on its behalf by an attorney or officer of the corporation so authorised.
3. Where a member appoints more than one proxy, the appointment shall be invalid unless he specifies the proportion of his holdings to be represented by
   each proxy.
4. This Form of Proxy must be deposited at the Company’s Registered Office at 34th Floor, Menara TA One, 22, Jalan P. Ramlee, 50250 Kuala Lumpur not less than
   forty-eight (48) hours before the time appointed for holding the meeting or any adjournment thereof




                                                                                                                             TA ENTERPRISE BERHAD
                                                                                                                                                        (194867-M)
Fold this flap for sealing




Then fold here




                                                                AFFIX
                                                               STAMP
                                                                HERE


                             The Company Secretary
                             TA	ENTERPRISE	BERHAD	(194867-M)
                             34th Floor, Menara TA One
                             22, Jalan P. Ramlee
                             50250 Kuala Lumpur




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