PLUS Expressways Berhad - I3investor

www.plus.com.my

PLU

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xpressw

ays Berhad (570244-T)

annual reporT 2010

PLUS EXPRESSWAYS BERHAD (570244-T)

Menara Korporat, persada pluSpersimpangan Bertingkat Subang, KM15, lebuhraya Baru lembah Klang47301 petaling Jaya, Selangor Darul ehsan, MalaysiaT +603 7801 6666/7666 4666 F +603 7801 6600/7666 4400

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Annual General Meeting

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DATE 29 June 2011

TIME 2.30 p.m.

VENUE BanquetHall,MenaraKorporat, PersadaPLUS, PersimpanganBertingkat Subang, KM15, LebuhrayaBaru LembahKlang, 47301Petaling Jaya, SelangorDarul Ehsan,Malaysia.

9

PLUSEXPRESSWAYSISTHELARGEST TOLL

EXPRESSWAY OPERATOR IN

SOUTH EAST ASIA ANDONEOFTHELARGESTINTHE

WORLDINTERMSOFMARKETCAPITALISATION

VISIONSTATEMENT

MISSION STATEMENT

“To be a PremierGlobal ExpresswayGroup”

“Providing Efficient and SafeExpresswayNetwork that EnhancesQuality of Life”

1. Passion for Success2. Integrity3. Caring4. Trustworthiness5. Teamwork6. Sincerity7. Financial Prudence

CORPORATESTATEMENT

…OUR GUIdING PRINcIPLE WILL bE TO cREATE vALUE

THAT cAN ELEvATE THE GROUP TO GREATER HEIGHTS ANd SUSTAIN THE dEEP ANd cONTINUEd cONfIdENcE Of

ALL OUR STAkEHOLdERS.TAN SRI DATO’ MOhD ShERIff MOhD KASSIMCHAIRMAN

“

“

PASSION fOR SUCCESS

Our passion for successkeeps us enthusiastic anddrives us forward to excelin all thatwe undertake todo.

OURTRUSTWORThINESS

By being trustworthy,we takeresponsibility for all thatwe doand say.

OURTEAMWORK

Teamwork enables us to tap thediverse range of talent, skillsand experience amongst us todeliver outstandingperformance.

OURSINCERITY

Sincerity underlines all ouractions and business activities.

OURINTEGRITY

Integrity is embedded in all ouractions and business activities.

OURCARING

By caring for all ourstakeholders and theenvironment,we help toenrich peoples’ lives.

Notice of Annual GeneralMeetingStatement Accompanying theNotice of TheNinth Annual GeneralMeetingFinancial Calendar 2010/2011Milestones 2010 – 2011

CompanyProfileOur ExpresswaysGroupCorporate StructureAwards andRecognition 2010Five-YearGroup FinancialHighlights2010GroupOperationalHighlightsGroupQuarterly PerformanceGroup Financial ReviewSharePrice& Volume TradedChairman’s StatementOperationsReviewCorporate InformationCompany SecretariesProfile of Board of DirectorsManagement TeamStatement of CorporateGovernanceStatement on Internal ControlStatement of Additional Compliance Information Audit CommitteeReport

Directors’ ReportStatement byDirectorsStatutoryDeclarationIndependent Auditors’ ReportIncomeStatementsStatements of Comprehensive IncomeStatements of Financial PositionStatements of Changes in EquityStatements of Cash FlowsNotes to the Financial Statements

RecurrentRelatedParty TransactionsRelationshipwithRelatedPartiesAnalysis of ShareholdingsList of PropertiesGroupDirectory

• Form of Proxy

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10111213141620212526324243445052646970

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NOTICEISHEREBYGIVENTHATtheNinthAnnualGeneralMeetingoftheCompanywillbeheldattheBanquetHall,MenaraKorporat,PersadaPLUS,PersimpanganBertingkatSubang,KM15,LebuhrayaBaruLembahKlang,47301PetalingJaya,SelangorDarulEhsan,MalaysiaonWednesday,29June2011at2.30p.m.forthepurposeoftransactingthefollowingbusinesses:

AGENdA:

As Ordinary business1. ToreceivetheAuditedFinancialStatementsfortheyearended

31December2010togetherwiththeReportsoftheDirectorsandAuditorsthereon.

2. Tore-electthefollowingDirectorsretiringinaccordancewithArticle76oftheCompany’sArticlesofAssociation:

i. TanSriDatukK.Ravindranii. DatukSeriPanglimaMohdAnnuarZaini

iii. QuahPohKeat

3. Toconsiderand,ifthoughtfit,topassthefollowingresolutionpursuanttoSection129oftheCompaniesAct,1965:

i. “ThatTanSriDato’MohdSheriffMohdKassim,whoretiresinaccordancewithSection129(2)oftheCompaniesAct,1965,beandisherebyre-appointedasaDirectoroftheCompanyinaccordancewithSection129(6)oftheCompaniesAct,1965toholdofficeuntilthenextAnnualGeneralMeeting”

4. ToapprovetheDirectors’remuneration.

5. Tore-appointMessrsErnst&YoungasAuditorsandtoauthorisetheDirectorstofixtheirremuneration.

As Special businessToconsiderandifthoughtfit,topassthefollowingasordinaryresolutions:

6. PROPOSED RENEWAL Of ShAREhOLDERS’ MANDATE fOR RECURRENT RELATED PARTY TRANSACTIONS Of A REVENUE OR TRADING NATURE

“THATpursuanttoparagraph10.09oftheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad,approvalbeandisherebygivenfortherenewaloftheShareholders’MandatefortheCompanyand/oritssubsidiaries(“PLUSExpresswaysGroup”)toenterintorecurrentrelatedpartytransactionsofarevenueortradingnature,whicharenecessaryfortheday-to-dayoperationsofthePLUSExpresswaysGrouptobeenteredintobythePLUSExpresswaysGroupprovidedsuchtransactionsareintheordinarycourseofbusinessandareontermsnotmorefavourabletotherelatedpartythanthosegenerallyavailabletothepublic,particularsofwhicharesetoutinSection2.2

RESOLUTION 1RESOLUTION 2RESOLUTION 3

RESOLUTION 4

RESOLUTION 5

RESOLUTION 6

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oftheCirculartoShareholdersoftheCompanydated7June2011,ANDTHATsuchapprovalconferredbytheShareholders’Mandateshallcontinuetobeinforceuntil:

(a) theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompanyfollowingthisAGMatwhichsuchmandateispassed,atwhichtimeitwilllapse,unlessbyaresolutionpassedatsuchgeneralmeetingwherebytheauthorityisrenewed;

(b) theexpirationoftheperiodwithinwhichthenextAGMoftheCompanyafterthedateisrequiredtobeheldpursuanttoSection143(1)oftheCompaniesAct,1965(Act)(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheAct);or

(c) revokedorvariedbyresolutionpassedbytheshareholdersinageneralmeeting,

whicheveristheearlier,

ANDFURTHERTHATtheDirectorsoftheCompanyand/oranyofthembeandare/is(asthecasemaybe)herebyauthorisedtocompleteanddoallsuchactsandthings(includingexecutingsuchdocumentsunderthecommonsealinaccordancewiththeprovisionsoftheArticlesofAssociationoftheCompany,asmayberequired)togiveeffecttotheProposedRenewalofShareholders’Mandate.”

7. PROPOSED NEW MANDATE fOR ADDITIONAL RECURRENT RELATED PARTY TRANSACTIONS Of A REVENUE OR TRADING NATURE

“THATpursuanttoparagraph10.09oftheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad,approvalbeandisherebygivenfortheShareholders’MandateforPLUSExpresswaysGrouptoenterintoadditionalrecurrentrelatedpartytransactionsofarevenueortradingnature,whicharenecessaryfortheday-to-dayoperationsofthePLUSExpresswaysGrouptobeenteredintobythePLUSExpresswaysGroupprovidedsuchtransactionsareintheordinarycourseofbusinessandareontermsnotmorefavourabletotherelatedpartythanthosegenerallyavailabletothepublic,particularsofwhicharesetoutinSection2.3oftheCirculartoShareholdersoftheCompanydated7June2011,ANDTHATsuchapprovalconferredbytheShareholders’Mandateshallcontinuetobeinforceuntil:

(a) theconclusionofthenextAnnualGeneralMeeting(“AGM”)oftheCompanyfollowingthisAGMatwhichsuchmandateispassed,atwhichtimeitwilllapse,unlessbyaresolutionpassedatsuchgeneralmeetingwherebytheauthorityisrenewed;

(b) theexpirationoftheperiodwithinwhichthenextAGMoftheCompanyafterthedateisrequiredtobeheldpursuanttoSection143(1)oftheCompaniesAct,1965(Act)(butshallnotextendtosuchextensionasmaybeallowedpursuanttoSection143(2)oftheAct);or

RESOLUTION 7

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(c) revokedorvariedbyresolutionpassedbytheshareholdersinageneralmeeting,

whicheveristheearlier,

ANDFURTHERTHATtheDirectorsoftheCompanyand/oranyofthembeandare/is(asthecasemaybe)herebyauthorisedtocompleteanddoallsuchactsandthings(includingexecutingsuchdocumentsunderthecommonsealinaccordancewiththeprovisionsoftheArticlesofAssociationoftheCompany,asmayberequired)togiveeffecttotheProposedShareholders’Mandate.”

bY ORdER Of THE bOARd

Tan hwee Thian(MIA1904)Noor Meiza Ahmad(LS0009016)Company Secretaries

PetalingJaya,SelangorDated7June2011

RESOLUTION 8NO

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NOTE 1

1. Everymemberisentitledtoappointaproxyorinthecaseofacorporation,toappointarepresentativetoattendandvoteinhisplace.AproxymaybutneednotbeamemberoftheCompanyandtheprovisionofSection149(1)(b)oftheCompaniesAct,1965neednotbecompliedwith.

2. Tobevalid,theoriginalformofproxydulycompletedmustbedepositedattheShareRegistrar’soffice,SymphonyShareRegistrarsSdnBhd,Level6,SymphonyHouse,BlockD13,PusatDaganganDana1,JalanPJU1A/46,47301PetalingJaya,Selangornotlessthan48hoursbeforethetimeofholdingtheMeeting.

3. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorhisattorneydulyauthorisedinwritingorifsuchappointerisacorporation,underitscommonsealorunderthehandofitsattorney.

4. Amemberholdingonethousand(1,000)ordinarysharesorlessmayappointonlyone(1)proxytoattendandvoteatageneralmeetingwhoshallrepresentallthesharesheldbysuchmember.Amemberholdingmorethanonethousand(1,000)ordinarysharesmayappointuptoten(10)proxiestoattendandvoteatthesameMeetingandeachproxyappointedshallrepresentaminimumofonethousand(1,000)ordinaryshares.Whereamemberappointsone(1)ormoreproxiestoattendandvoteatthesameMeeting,suchappointment(s)shallbeinvalidunlessthememberspecifiestheproportionofhisshareholdingtoberepresentedbyeachproxy.

5. Iftheformofproxyisreturnedwithoutanyindicationastohowtheproxyshallvote,theproxywillvoteorabstainashedeemsfit.

6. Ifnonameisinsertedinthespaceprovidedforthenameofyourproxy,theChairmanoftheMeetingwillactasyourproxy.

NOTE 2

Resolutions pertaining to the Proposed Renewal of Shareholders’ Mandate for Recurrent Related Party Transactions and Proposed New Mandate for Additional Recurrent Related Party Transactions of a Revenue or Trading Nature.

ForResolutions7and8,furtherinformationontheRecurrentRelatedPartyTransactionsaresetoutintheCirculartoShareholdersoftheCompanydated7June2011whichisdispatchedtogetherwiththeCompany’s2010AnnualReport.

NOTE 3

Thefollowingpersonhasbeendesignatedtoattendtoshareholders’request:Name :KhalilahDato’MohdTalhaDesignation :Head,CorporateCommunicationsDepartmentContactNo :+60376664666

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dIREcTORS WHO ARE SEEkING RE-ELEcTION AT THE NINTH ANNUAL GENERAL MEETING Of THE cOMPANY:

DirectorsretiringpursuanttoArticle76oftheCompany’sArticlesofAssociationandseekingre-electionareasfollows:

• TanSriDatukK.Ravindran• DatukSeriPanglimaMohdAnnuarZaini• QuahPohKeat

Directorwhoisovertheageof70yearsandseekingre-appointmentpursuanttoSection129oftheCompaniesAct,1965isTanSriDato’MohdSheriffMohdKassim.

Thedetailsofthefour(4)Directorsseekingre-electionaresetoutintheirrespectiveprofileswhichappearfrompages44to49ofthisAnnualReport.ThedetailsoftheirinterestinthesecuritiesoftheCompanyaresetoutintheAnalysisofShareholdingsonpage218ofthisAnnualReport.

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2010/2011

2010

2011

fEbRUARY 23• Announcementof

financialresultsforthe4thquarterandyearended31December2009.

• AnnouncementofKeyPerformanceIndicators(KPI)for2010.

JUNE 2• Completionof

subscriptionof49%ofInduNavayugaInfraProjectPrivateLimited(“INIPPL”),India,makingINIPPLaforeignsubsidiaryofPEB.

AUGUST 19• Announcementof

financialresultsforthe2ndquarterended30June2010.

dEcEMbER 20• PEBreceivedanoffer

fromJelasUlungSdnBhd(“JelasUlung”)toacquireallofthebusinessandundertakingincludingallassetsandliabilitiesofPEB.

fEbRUARY 23• EGMontheUEM-

EPFoffer.• Announcementof

financialresultsforthe4thquarterandyearended31December2010.

MAY 21• Announcementof

financialresultsforthe1stquarterended31March2010.

JULY 28• PEBenteredintoa

conditionalsaleandpurchaseagreementwithPTBakrie&BrothersTBK(“Bakrie”)forthedisposalofPEBofitsentireequityinterestof60%inPTCimanggisCibitungTollways(“CCTW”).

NOvEMbER 24• Announcementof

financialresultsforthe3rdquarterended30September2010.

fEbRUARY 7• Signingof

ConcessionAgreementfortheJetpur-SomnathHighwayintheStateofGujarat,India.

APRIL 9• Paymentoffinal

singletierdividendof10.0senperordinaryshareforfinancialyearended31December2009.


acquisitionof20%equityinterestinTouch‘nGoSdnBhd(“TnG”),makingTnGanassociateofPEB.

SEPTEMbER 24• Paymentofinterim

singletierdividendof7.5senperordinaryshareforfinancialyearended31December2010.

dEcEMbER 23• Extraordinary

GeneralMeeting(“EGM”)toadjourntheEGM.

APRIL 29• EighthAnnual

GeneralMeeting.


acquisitionof100%equityinterestinTerasTeknologiSdnBhd(“TERAS”).

OcTObER 15• PEBreceivedanoffer

fromUEMGroupBerhad(“UEM”)andEmployeesProvidentFundBoard(“EPF”)as“JointOfferors”toacquireallofthebusinessandundertakingincludingallassetsandliabilitiesofPEB.

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MIL

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2010/2011

2010

5 JANUARY• PersadaPLUS,theheadquartersofPLUS

ExpresswaysBerhad,isofficiallylaunchedbythePrimeMinisterofMalaysia.

25 fEbRUARY• Acourtesycampaign,“Salam,Senyum,

Sabar”(Greet,Smile,Patience)islaunchedforfrontliners.

5 – 7 APRIL• Thefirst-everPLUSInternationalExpressway

Conference&ExhibitionorPIECE2010forindustryplayersisheldinKualaLumpur,attracting400localandforeigndelegatesfrom15countries.

29 APRIL• The8thPLUSExpresswaysBerhadAnnual

GeneralMeetingisheldatPersadaPLUS.

19 JULY• ThenewlookSungaiPerakRestandService

Area(Southbound)withtheconceptof“GreenTrail”isofficiallyunveiled.

4 AUGUST• MalaysiansUniteforRoadSafety(MUFORS),a

PLUSCSRinitiative,launchesitsRoadReelsShortFilmCompetitionforstudentsofhigherlearning.

20 AUGUST• MUFORSGallery,acentretocreateawareness

andeducatethepubliconroadsafety,isofficiallylaunchedbytheMinisterofWorks.

3 SEPTEMbER• PLUScontributessixambulancesand15

vehiclestoRedCrescent,StJohn’sandPDRMrespectivelyataWorksMinistry-organisedroadsafetycampaignforuniversitystudents.

12 NOvEMbER• “JomJalanBersamaPLUS”,a13-part

travelogueseriesjointlyproducedwithTV3,islaunchedattheDengkilRestandserviceArea(Southbound).

23 dEcEMbER• AnExtraordinaryGeneralMeetingisheldat

PersadaPLUS.

2011

25 JANUARY• PLUSTravelTimeAdvisoryisissuedto

motoristsheadinghomefortheChineseNewYearholidays.

26 JANUARY• Inconjunctionwiththefestiveseason,OPS

SikapXXIIislaunchedatPersadaPLUS.

28 JANUARY • MUFORSRoadReelsShortFilmAwards

ceremonyisheldtoannounceandcelebratethewinners.

23 fEbRUARY• AsecondExtraordinaryGeneralMeetingisheld

atPersadaPLUS.

19 APRIL• The‘MUFORSRespectYourLimits’roadshow

getsunderwaywithanewco-sponsorandprogrammepartner,PUSPAKOMSdnBhd.

25 – 26 APRIL• PLUSisaplatinumsponsorandco-organiser

ofthePermanentInternationalAssociationofRoadCongress(PIARC)Seminarwhichaimedtoshareandgathernewknowledgeonroadconstructionandengineering.

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INDIA

MALAYSIA

INDONESIA

International Ventures (Indonesia)

PT Lintas Marga Sedaya (“LMS”)• Cikampek-PalimananExpressway,West Java, Indonesia

• Length: 116 km•Status: Land acquisition in

progress (89% as atJanuary 2011)

OUR OVERSEAS PROJECTSIndia

PLUSExpressways’maidenhighwayprojectinIndia,the21.6kmBhiwandi-Kalyan-ShilPhataHighway,commencedoperationsinAugust2009.

InJanuary2010,PLUSExpresswaysannouncedtheproposedacquisitionofequityinterestinInduNavayugaInfraProjectPrivateLimited,India,theconcessionairefora38.6kmhighwayintheStateofTamilNadu,India.

InFebruary2011,aforeignassociatecompanywhichwasformedtogetherwithIDFCProjectsLimitedinIndia,Jetpur-SomnathTollwaysLimited(“SPV”),andtheNationalHighwayAuthorityofIndiaenteredintoaConcessionAgreementforthe127.6kmJetpur-SomnathHighwayintheStateofGujarat,Indiaonadesign,build,finance,operateandtransferbasiswithaconcessionperiodof30years.

International Ventures (India)

Jetpur-Somnath Tollways Limited (“Jetpur – Somnath”)• Jetpur-SomnathHighway, Gujarat, India

• Length: 127.6 km•Status: Concession Agreement

signed on 7 February 2011

PLUS BKSP Toll Limited (“PLUS BKSP”)• Bhiwandi-Kalyan-Shil PhataHighway,Mumbai, India

• Length: 21.6 km•Status: Commenced operations

on 22 August 2009

International Ventures (India)

Indu Navayuga Infra Project Private Limited (“INIPPL”) • Padalur-TrichyHighway, TamilNadu, India

• Length: 38.6 km•Status: Commenced

operations on 6May 2010

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Domestic Operations (Malaysia)

Projek Lebuhraya Utara-Selatan Berhad (PLUS)•North-South Expressway• NewKlang Valley Expressway• FederalHighwayRoute 2• Seremban-PortDicksonHighway• Length: 846 km•ConcessionPeriod: March 1988 –December 2038 (50 Years)

Expressway Lingkaran Tengah Sdn Bhd (ELITE)• North-South ExpresswayCentral Link• Length: 63 km•ConcessionPeriod: April 1994 –May 2030 (36 Years)

Linkedua (Malaysia) Berhad (Linkedua)• Malaysia-Singapore SecondCrossing• Length: 47 km•ConcessionPeriod: July 1993 –December 2038 (45 Years)

Konsortium Lebuh Raya Butterworth-Kulim Sdn Bhd (KLBK) • Butterworth-KulimExpressway• Length: 17 km• ConcessionPeriod: June 1994 – June 2026 (32 Years)

OUR

EXPR

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AYS

Indonesia

InJuly2007,PLUSExpresswaysacquired55%ofPTLintasMargaSedaya,theconcessionairetoconstructandoperatea116kmtollhighwayfromCikampektoPalimananonJavaIsland,Indonesia.

PLUSExpressways,backedbyconsistentfinancialperformance,strongcapitalisationandmorethan20yearsofexperienceintheoperationsandmaintenanceofexpressways,isontracktoachieveourgoalofbeingapremierglobalexpresswaygroup.

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GROU

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asat12M

ay2011 KhAzANAh NASIONAL BERhAD

100%

UEM GROUP BERhAD38.51%

DOMESTIC

•Projek LebuhrayaUtara-SelatanBerhad 100%• Expressway Lingkaran Tengah SdnBhd 100%• Linkedua (Malaysia) Berhad 100%• KonsortiumLebuhRayaButterworth-Kulim(KLBK) SdnBhd

100%•PLUSHelicopter Services SdnBhd 100%• Teras Teknologi SdnBhd 100%

DOMESTIC

• Touch ‘nGo SdnBhd 20%

INTERNATIONAL

• Jetpur Somnath Tollways Limited (India) 26%***

INTERNATIONAL

•PLUSBKSP Toll Limited (India) 94.12%*•PT LintasMarga Sedaya (Indonesia) 55%•PTCimanggis Cibitung Tollways (Indonesia) 60%• InduNavayuga Infra Projects Private Limited (India) 49%**

Teras Control Systems Sdn Bhd 100% Teras Research Sdn Bhd 100%

MyWeb Online Sdn Bhd 100%

Krishost.Com Sdn Bhd 100%

* PEB holds 94.12% direct and indirect interest in PLUS BKSP via PLUS Kalyan (Mauritius) Private Limited** PEB holds 49% interest in INIPPL via PLUS Plaza (Mauritius) Private Limited*** PEB holds 26% direct interest in Jetpur Somnath Tollways Limited

15.53%

ASSOCIATE COMPANIESSUBSIDIARIES

PLUS Expressways Berhad

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AWAR

DSAN

DREC

OGNITION2010

Awards & Recognition 2010

8May MasterclassBumiputraCEO of the Year –MalaysiaBusiness Leadership Awards 2010(MBLA)

8May MalaysiaBusiness Leadership Award(Concession Sector) –MalaysiaBusinessLeadership Awards 2010 (MBLA)

30 June Merit AwardBest Community Campaign –TheGlobal CSRSummit 2010 Awards,Singapore

29 July Sri CendekiawanAward-SPM:NajmuFatihahMohd Zain (Mohd Zain Zakaria,Supervisor Seremban Toll Plaza) –UEMGroup

29 July AnugerahKhas Award –MasbanuHj Laili–UEMGroup

29 July SriMulia Award –Noor AmaliMahat –UEMGroup

29 July SriWira Award – Shaffe P.CMohammadUnni –UEMGroup

29 July Sri Cipta Team –PLUSMiles LoyaltySystemTeam–UEMGroup

October Sustainability Reporting Awards (MaSRa)2010 – ACCA

15Nov R&RGunung Semanggol (Utara) –Winner,Private Sector PremisesCategory, PerakLandscapingCompetition 2010 – PejabatSetiausahaKerajaanNegeri PerakDarulRedzuan

14Dec Best Conduct of AGM 2009 –MinorityShareholderWatchdogGroup (MSWG)

14Dec Industry Excellence Award (Infrastructure)–Minority ShareholderWatchdogGroup(MSWG)

14Dec Distinction Award –Minority ShareholderWatchdogGroup (MSWG)

15Dec Practice Solution for Public ListedCompany –MIA&CIMA

Awards & Recognition for 2011

17 Jan Platinum 2010 - Annual Report inBahasaMelayu –National Annual Report Awards(NACRA)

17 Jan Gold 2010 -Best CSR report –NationalAnnual Report Awards (NACRA)

17 Jan Silver 2010 - TheMost Outstanding AnnualReport Of The Year –National AnnualReport Awards (NACRA)

11March Bronze – Transportation, Travel& Tourismcategory – PUTRABrandAwards

29March Marketplace StarBiz – ICRMalaysiaCorporateResponsibility Awards (Marketcapitalisation aboveRM1 billion) – The Star& Institute of CorporateResponsibilityMalaysia

29March Workplace StarBiz – ICRMalaysiaCorporateResponsibility Awards (Marketcapitalisation aboveRM1 billion) – The Star& Institute of CorporateResponsibilityMalaysia

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FIVE

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FINAN

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HIGHLIGH

TS 2010 2009 2008 2007 2006

PROfITABILITY (RM million)Tollcollection 2,573 2,366 2,237 1,820 1,691Revenue 3,351 3,179 2,968 2,282 2,091EBITDA* 2,789 2,660 2,448 2,187 1,977Profitbeforetax 1,777 1,624 1,516 1,308 1,108Profitattributabletoownersoftheparent 1,306 1,186 1,079 1,248 1,105

KEY BALANCE ShEET DATA (RM million)Totalassets 19,248 18,367 17,021 15,893 12,588Totalborrowings&financialliabilities 11,534 10,999 10,473 10,080 7,315Totalliabilities 13,002 12,270 11,324 10,543 8,070Sharecapital 1,250 1,250 1,250 1,250 1,250Shareholders'equity 6,190 6,076 5,678 5,340 4,518

fINANCIAL STATISTICSTollcollectiongrowth(%) 8.7 5.8 22.9 7.7 1.6EBITDAmargin(%)* 82.9 83.7 82.5 86.7 84.0Returnonaverageequity(%) 21.3 20.2 19.6 25.3 25.5Returnonaverageassets(%) 6.9 6.7 6.6 8.8 9.0Debt/equity(Times) 1.9 1.8 1.8 1.9 1.6

ShARE INfORMATIONPer Share (sen)Earnings 26.1 23.7 21.6 25.0 22.1Netassets 124.9 121.9 113.9 107.0 90.4

Share price (RM)High 4.62 3.38 3.28 3.44 3.12Low 3.20 2.75 2.53 2.78 2.57Closing 4.52 3.26 2.98 3.28 2.81

DividendsDividend(RMmillion) 375 825 800 700 625Dividendpershare(sen) 7.5 16.5 16.0 14.0 12.5Dividendgrowth(%) ** 3 14 12 39Dividendpayoutratio(%) ** 70 74 56 57

* 2006 – 2007 : before deduction for notional tax on tax exempt dividends and notional interest on Government Support Loan pursuant to toll compensation arrangement per Second Supplemental concession Agreement.

2008 – 2010 : No provision for notional tax on tax exempt dividends following election of single tier tax system in 2008.

** No further dividends will be proposed for shareholders’ approval in respect of the financial year ended 31 December 2010.

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10’09’08’07’06’

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TOLLCOLLECTION(RMMillion)

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TOTALSHAREHOLDERS’EQUITY(RMMillion)

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DIVIDENDSPERSHARE(SEN)

EARNINGSPERSHARE(SEN)

NETASSETSPERSHARE(SEN)

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PLUS 2010 2009 2008 2007 2006

TRAffIC VOLUME ANALYSIS

Trafficvolumegrowth(%) 7.7% 7.1% 5.2% 7.7% 1.6%Totaltrafficvolume(No.ofvehicles) 416,712,194 392,699,697 376,531,093 367,666,873 342,424,316Averagedailytrafficvolume(No.ofvehicles)

1,141,677 1,075,890 1,028,773 1,007,307 938,149

METhOD Of PAYMENT (%)

Cashpayments 46.6% 48.9% 51.4% 54.1% 57.4%

ElectronicTollCollection(ETC) 53.4% 51.1% 48.6% 45.9% 42.6%

2010

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sand

1,00

7

1,02

9

1,07

6

1,14

2

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57.4

42.6

%

54.1

45.9

51.4

48.6

48.9

51.1

46.6

53.4

10’09’08’07’06’

1.6

%

7.7

7.7

5.2

7.1

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342

Mill

ion

368

377 39

3 417

Cash paymentsElectronic Toll Collection (ETC)

Traffic Volume Growth

Average Daily Traffic Volume(Numberofvehicles)

Total Traffic Volume(Numberofvehicles)

Method of Toll Payment

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ELITE 2010 2009 2008 2007 2006



214,657 195,951 177,262 168,319 158,771


Cashpayments 42.8% 44.6% 45.4% 47.5% 51.1%


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Thou

sand

168 17

7 195 21

4

10’09’08’07’06’

51.1

48.9

%

47.5

52.5

45.4

54.6

44.6

55.4

42.8

57.2

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%

6.0

4.0

9.3 11

.4

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58

Mill

ion

61

65

72

78






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LINKEDUA 2010 2009 2008 2007 2006



71,414 59,549 54,331 47,083 42,349


Cashpayments 26.1% 52.3% 69.4% 75.4% 78.3%


10’09’08’07’06’

42

Thou

sand

47

54

60

71

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21.7

%

75.4

24.6

69.4

30.6

52.3

47.7

26.1

73.9

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4.4

%

11.9

19.6 21

.5

11.4

10’09’08’07’06’

15

Mill

ion

17

20

22

26






2010

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BKE 2010 2009 2008 2007 2006


Trafficvolumegrowth(%) 9.2% 4.4% –1.9% 4.1% 4.0%Totaltrafficvolume(No.ofvehicles) 22,887,010 21,017,369 20,206,780 20,662,169 19,811,951Averagedailytrafficvolume(No.ofvehicles)

62,704 57,582 55,210 56,609 54,279


Cashpayments 53.5% 55.1% 56.1% 60.5% 63.6%


10’09’08’07’06’

54

Thou

sand

57 55 58

63

10’09’08’07’06’

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36.4

%

60.5

39.5

56.1

43.9

55.1

44.9

53.5

46.5

Cash payments

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%

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4.4

9.2

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21

23

Electronic Toll Collection (ETC)





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GROU

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2009

FirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter

fullYear

financial Performance(RM’Million)Revenue 813 860 873 806 3,352Directcostofoperations (225) (245) (259) (262) (991)

588 615 614 544 2,361Financeandotherincome 36 37 36 135 244

Generalandadministrationexpenses (19) (20) (24) (16) (79)

Financecosts (188) (188) (191) (184) (751)Shareofresultsfromassociate – – 1 1 2

Profitbeforetax 417 444 436 480 1,777Profitaftertax 299 319 348 335 1,301Earningspershare(sen) 6.0 6.4 7.0 6.8 26.1Dividendpershare(sen) – – 7.5 – 7.5

FirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter

FullYear

financial Performance(RM’Million)Revenue 738 772 815 854 3,179Directcostofoperations (218) (212) (229) (256) (915)

520 560 586 598 2,264Financeandotherincome 33 31 31 40 135

Generalandadministrationexpenses (17) (19) (20) (19) (75)

Financecosts (165) (177) (175) (183) (700)Profitbeforetax 371 395 422 436 1,624Profitaftertax 279 281 312 313 1,185Earningspershare(sen) 5.6 5.6 6.2 6.3 23.7Dividendpershare(sen) – 6.5 – 10.0 16.5

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Revenues 2010 2009 Variance %Change(RMMillion)Tollcollection 2,574 2,366 208 9%Tollcompensationrevenue 885 813 72 9%Less:Fairvalueadjustmentontoll

compensationrevenuefortheyear (113) – (113) >100%772 813 (41) –5%

Less:AccrualforGovernment’sshareoftollrevenue (13) – (13) >100%

Otherrevenues 19 – 19 100%

Totalrevenues 3,352 3,179 173 5%

For2010,totalrevenue(excludingthefairvalueadjustmentontollcompensation)ofRM3,465millionwasRM286millionor9%higherthanyear2009ofRM3,179million.

ThemaincontributortothegrowthwerehighertollcollectionfromPLUSofRM154milliononthebackofayear-on-yeartrafficgrowthof7.7%,highertollcompensationofRM72millionandcontributionofrevenuefromnewsubsidiariesacquiredduringtheyear.

In2010,highernon-cashtollcompensationwasrecordedinlinewithhighertrafficvolumefortheyear.ThetollcompensationofRM885millionconsistsofnon-cashgrosscompensationofRM629millionandtheremainingwascompensationfornon-tollrateincreasein2010aswellascompensationfordiscountonbuses.

ThefairvalueadjustmentontollcompensationarosefromadoptionofnewFinancialReportingStandards(FRS)in2010.WhiletheaccrualforGovernment’sshareoftollrevenueofRM13millionwasmadepursuanttothetermsofPLUS’sSCA,whenthetollrevenueearnedduringtheyearismorethanthethresholdtollrevenue(2009:RMNilastollrevenueearnedwaslessthanthethresholdtollrevenue).

breakdown of Toll collection 2010

84%(PLUS)

(ELITE)

(LINKEDUA)

(PLUS BKSP)(INIPPL)

(KLBK)

9%

4%

2% 0.6%0.4%

2010

TheanalysisoftollcollectionbyconcessioncompanyshowsthatPLUSremainsthemaincontributorof84%,followedbyEliteof9%,Linkeduaof4%,KLBKof2%,PLUSBKSPof0.6%andINIPPLof0.4%for2010.

Operating costs (RMMillion)

2010 2009 Variance %Change

Routinemaintenance 241 235 (6) –3%Managementexpenditure

397 345 (52) –15%

Depreciation&amortisation

432 410 (22) –5%

Totaloperatingcosts 1,070 990 (80) –8%

Increaseinoperatingcostsfor2010weremainlyattributedtohigheremployeecostsandtheinclusionofTERASaswellasincreaseinamortisationchargesincorrespondencewithhighertollcollection.

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Thebreakdownofmanagementexpenditureisshownasfollows:

breakdown of Management Expenditure

Significantcostsundermanagementexpenditureareemployeecosts.Attheendof2010,therewas4,578staff(2009:4,233staff)with77%arefrontlinersforoperationalrequirements.Inclusionofnewsubsidiariesandincreaseintrainingactivitiesalsoledtohigheremployeecosts.

MaterialsandsubcontractorexpensesincurredbyTERASmakeupnewcategoryofexpenditurefortheGroup.Generalexpensesandprofessionalfeeswerelowerin2010,whileothercostsweremostlykeptundercontrol.

bALANcE SHEET

Assets (RMMillion) 2010 2009 Variance %ChangeNon-currentassets Concessionassets 12,612 12,418 194 2% Property,plantandequipment 82 76 6 8% Investments 181 159 22 14% TollcompensationrecoverablefromtheGovernment

2,460 2,486 (26) -1%

Others 29 12 17 142%

Currentassets Depositsandcash 3,478 2,883 595 21% Others 406 333 73 22%

Totalassets 19,248 18,367 881 5%

52% 52%

12%

10%

9%

8%

5%4%

12%

8%

7%

6%

5%

5%5%

Employee CostsGeneral ExpensesToll Consumables & CommissionRepairs & Maintenance

UtilitiesMaterials & SubcontractorProfessional FeesAdvertising & Marketing

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In2010,totalassetsreachedRM19,248million,5%higherthan2009.

ThetollcompensationrecoverablefromtheGovernmentispursuanttoPLUS’stollcompensationsettlementarrangementintheSecondSupplementalConcessionAgreement.ThedecreaseisduetothefairvalueadjustmentontollcompensationfollowingtheadoptionofthenewFRSin2010andhighersetoffofPLUS’sincometaxpayableintheyear.Excludingthefairvalueadjustment,thetollcompensationishigherinlinewithhighertrafficvolumegrowthforPLUSof7.7%(2009:7.1%).

Higherdepositsandcashwasattributedtohighertollrevenueduringtheyear.

Concessionassetswhichconsistsofexpresswaydevelopmentexpenditure,heavyrepairsandtollequipmentusuallymakeupmajorityoftotalassetsforhighwaycompanies.Thecomponentsofconcessionassetsareshownbelow.

breakdown of concession Assets

92%

6% 1%1% 1%1%6%

92%

Expressway Development Expenditure

Heavy Repairs

Capital Work-In-Progress

Other Concession Assets

2010 2009

Equity And Liabilities (RMMillion) 2010 2009 Variance %ChangeEquitySharecapital 1,250 1,250 0 0%Reserves 741 753 (12) -2%Retainedearnings 4,200 4,074 126 3%

Shareholders'equity 6,191 6,077 114 2%Minorityinterests 56 21 35 167%

Totalequity 6,247 6,098 149 2%

Non-currentLiabilitiesLongtermfinancialliabilitiesandborrowings 10,455 10,417 38 0%

Others 1,132 987 145 15%

CurrentLiabilities 0Tradeandsundrypayable 207 162 45 28%Shorttermfinancialliabilitiesandborrowings 1,080 582 498 86%Others 127 121 6 5%

Totalliabilities 13,001 12,269 732 6%

Totalequityandliabilities 19,248 18,367 881 5%

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RetainedearningsofRM4,200millionisafterdividenddistributionsofRM875million,madeupoffinalsingletierdividendforFY2009ofRM500millionandinterimsingletierdividendforFY2010ofRM375million.

Theanalysisoftotaldebtisasfollows:

Net debt (RMMillion) 2010 2009FinancialLiabilities 9,569 9,321BorrowingsGovernmentloans 1,647 1,552Otherloans 319 126

Totalfinancialliabilitiesandborrowings 11,535 10,999Cashandcashequivalents 3,478 2,883NetDebt 8,057 8,116NetDebt/Equity(times) 1.30 1.34

Theadditionalfinancialliabilitiesduringyear2010are:

– issuanceofPLUSSukukSeries3ofRM1billionnominalvalue(RM443millionpresentvalueonissuedate)inMay2010undertheRM4,500millionnominalvaluePLUSSukukSeries3MTNProgrammetopartiallyredeemtheSeniorSukukinaccordancewiththeSeniorSukuktrustdeed;

– issuanceofCommercialPapersbyPLUSBKSPofRs192crores(Rs175crorespresentvalueontheissuedate)torefinancetheexistingdebtsandforwokingcapitalrequirements;and

– consolidationofINIPPLTermLoanofRs266crorespursuanttotheacquisitionofthecompanyinJune2010.

AlldebtsundertheGroupareringgitbasedexceptforPLUSBKSPCommercialPapersandINIPPLTermLoan(inrupees)obtainedfortheIndianprojects.

Debt Rating and Outlook Rating Outlook

PEB PLUSSPVSukuk AA1 StablePLUS PLUSSeniorSukuk AAA Stable PLUSSukuk1 AAA Stable PLUSSukuk2 AAA Stable PLUSSukuk3 AAA StableELITE SeafieldSukuk AA2 StableKLBK KLBKBAIDS AA3 Stable

TheaboveIslamicfinancialfacilitiesareratedbyaMalaysianratingagency,RAMRatingServices.

dIvIdENdS

Forfinancialyear2010,PEBhaspaidaninterimdividendof7.5senperordinaryshareofRM0.25eachamountingtoRM375million(2009:interimsingletierdividendof6.5senpershareofRM0.25each)on24September2010.

Nofurtherdividendwillbeproposedforfinancialyearended31December2010(2009:finalsingletierdividendof10.0senpershareofRM0.25eachamountingtoRM500million).

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Million Shares

Jan’10

Feb’10

Mar’10

Apr’10

May’10

Jun’10

Jul’10

Aug’10

Sep’10

Oct’10

Nov’10

Dec‘10

5

10

15

20

25

30

35

40

2.00

2.50

3.00

3.50

4.00

4.50

5.00RM

Volume Traded Closing Price

ShAR

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Tan Sri Dato’ Mohd Sheriff Mohd Kassimchairman

ChAI

RMAN

’SSTATEM

ENT Dear Shareholders,

It is with great pleasure that I present to you the Annual Report of PLUS Expressways Berhad (“PLUS Expressways” or “the Group”) for the year ended 31 December 2010. It has been an eventful year in which we have seen many new developments taking place both in our operations and on the corporate front. As the journey continues, we remain confident on the strength of our numerous achievements to date and are committed towards maintaining excellent services in every aspect of the business.

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EcONOMIc OvERvIEW

2010sawtheMalaysianeconomycontinueonitspathtorecoveryfollowingtheglobalrecessionwhichresultedinanoverallGDPcontractionof1.7%in2009.Economicgrowthin2010increasedby7.2%fortheyearasaresultofthemeasuresintroducedbytheGovernmenttostimulatetheeconomy.

AsMalaysiaworkstowardsbuildingthehigh-incomesocietyenvisagedintheNewEconomicModellaunchedon30March2010,growthin2011isexpectedtoremainstrongonthebackofdomesticdemandandinlinewithglobalrecovery.Generally,theMalaysianeconomyisexpectedtobenefitfromtheGovernment’simplementationoftheEconomicTransformationProgrammefrom2011onwards,aswellasthepolicyreformstofurtherliberalisetheeconomy.

PERfORMANcE REvIEW

headline KPIs

TheGroupexceededtheHeadlineKeyPerformanceIndicator(KPI)targetssetfortheyear,achievingagrowthinrevenue*of9.5%againstthetargetof5%andareturnonequityof21.3%,higherthanthetargetof18%.WithregardtotheKPItargetondividendpayout,aninterimsingletierdividendof7.5senperordinaryshareamountingtoRM375millionwaspaidon24September2010.Nofinaldividendwasproposedinviewoftheon-goingcorporateexercisetoacquirethebusiness

ofPLUSExpresswaysbytheJointOfferorscomprisingUEMGroupBerhad(UEM)andEmployeesProvidentFundBoard(EPF).

OurPLUSRondapatrollingteamalsodeliveredonourpromisetokeepresponsetimesbelowthethresholdof20minutes,achievinga95%successrateagainsttheKPItargetof94%.

* Excludes non-cash toll compensation and the fair value adjustment of RM113.2 million arising from the adoption of new accounting standards.

financial Performance

StrongtrafficvolumegrowthexperiencedacrossalltheGroup’shighwayscontributedpositivelytotheoverallfinancialperformanceastollcollectionforthefinancialyearended31December2010increasedby8.8%toRM2,573.3millionfromRM2,366.0milliontheprecedingyear,andtotalrevenuefortheGrouprosetoRM3,351.5million.ExcludingthefairvalueadjustmentofRM113.2millionarisingfromtheadoptionofnewaccountingstandards,totalrevenuewasRM3,464.7million,anincreaseof9.0%fromtheprecedingyear’srevenueofRM3,179.0million.TheincreaseinGrouprevenuecorrespondedprimarilytoanincreaseintollcollectionofRM153.6millionbyPLUS,theGroup’slargesttollconcession,drivenbytrafficgrowthof7.7%fortheyearunderreview.

Coupledwithvariouscostsavinginitiativesandimprovementsinefficiency,theGroupregisteredprofitbeforetax(PBT)for2010ofRM1,777.0million,agrowthof9.4%againstthePBTofRM1,623.6millionthepreviousyear.Correspondingly,Groupprofitaftertax(PAT)increasedby9.8%orRM115.7milliontoRM1,300.8millionagainstthePATofRM1,185.1millionin2009.

Asat31December2010,theGroup’scashbalancestoodatRM3,483.0millionafterdividendpaymentsofRM875million,withcashgeneratedfromoperatingactivitiesofRM2,246.4million.

MILESTONE EvENTS

Network Expansion and Acquisitions

Onthehomefront,PLUSExpresswayscontinuedtoprovidebetteraccessibilitytoitsexpresswaynetworksandbeganworkontheconstructionoftheinterchangeandtollplazaatBukitGambirinJohor.AnothertwointerchangesatAlorPongsuinPerakandSgBuayainSelangorarescheduledtocommenceearthworksinthesecondhalfof2011.

2010alsosawtheGroupbroadenitsrecurringearningsbaseandimprovethevaluechainthroughtheacquisitionof100%equityintollsystemsprovider,TERASTeknologiSdnBhd(TERAS)and20%interestinTouch‘nGoSdnBhd(TnG).

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ThislattertransactionisexpectedtoallowPLUSExpresswaystheopportunitytoparticipateintheElectronicPaymentSystemorEPSmarketinlinewiththeGovernment’smovetowardsthecreationofane-paymentsocietyinMalaysia.

In termsof internationalbusiness, theGroupcontinuedtoconsolidate itspresencein Indiawithasuccessfulbidfor theRM655millionJetpur–Somnath four laningprojectinGujarat, tobeundertakenwithour jointbiddingpartner,IDFCProjectsLimited (IP).Togetherwith thecompletedacquisitionof49%interest inInduNavayuga InfraProjectPvt.Ltd. (INIPPL)andtheon-goingoperationsof theBhiwandiKalyanShilphataTollRoad (BKSP)nearMumbai,thismostrecentadditionto theGroup’s internationalportfoliohaspositionedPLUSExpresswayswell for furtherexpansion in India inyears tocome.

InIndonesiameanwhile,thedisposalofPLUSExpressways’entireequityinterestinPTCimanggisCibitungTollways(CCTW)willallowtheGroup

tofocusitsresourcesonconstructionofthe116kmCikampek–PalimananExpresswayinWestJava,targetedtocommenceinQ4of2011.Todate,closeto90%ofthelandrequiredfortheprojecthasbeenacquired.

Operational Efficiency

On15July2010,fullElectronicTollCollection(ETC)operationscommencedattheLimaKedaiTollPlazaonLINKEDUA,increasinglanecapacitybyatleast50%toallowgreaterthroughputforimprovedlaneefficiencyandreducedcongestionduringpeakperiods.ThisbringsthenumberoftollplazasalongthePLUSexpresswayscurrentlyenforcingcashlesstolltransactionstothree,theothertwolocationsbeingattheTanjungKupangTollPlazaalsoonLINKEDUAandBangunanSultanIskandarattheJohorBahruCauseway.

ThetransitiontofullETCoperationsalongLINKEDUAprecededa30percenttollreductionatTanjungKupangforallclassesofvehicleseffective1August2010.Thesignificantreductionintollchargesisintendedtoencouragemorecross-bordertravelwhileeasingtrafficcongestionattheJohorBahruCausewaybypromotinggreateruseofthealternativeconnectionbetweenMalaysiaandSingaporeviaLINKEDUA.

Inadditiontoimprovingefficienciesintollcollection,PLUSExpresswaysalsocontinuedwiththephasedexecutionofprojectBETA

whichwasfirstimplementedin2009.Standingfor“BoostingEfficiencyTransformingAttitude”,projectBETAhasenabledPLUSExpresswaystorealisefinancialandotherbenefitsinroutinemaintenance,claimsmanagement,operationsmanpowerplanningandemployeeperformancemanagementthroughtheuseofsimpletoolssuchastheShortIntervalControlwhichallowscorrectiveactionstobetakeninaproactivemanner.TheresultingsavingsincostshavehadapositiveimpactontheoperatingmarginoftheGroup.

Leading The field

PLUSExpresswayssuccessfullyorganisedthefirstPLUSInternationalExpresswaysConferenceandExhibition(PIECE2010),whichtookplaceinKualaLumpurfrom5thto7thApril2010.Attendedbymorethan350delegatesincluding107industryprofessionalsfromover15countriesworldwide,theconferencereceivedseveralaccoladesfromkeyparticipantsincludingconferencepartnersRoadEngineeringAssociationofAsiaandAustralasia(REAAA),onceagaindistinguishingPLUSExpresswaysasatrueleaderinthefieldoftollexpresswaymanagementinAsia.

Wealsoearnednumerousawardsduringtheyear,notably(amongothers):

theSilverAwardforMost•OutstandingAnnualReportoftheYear,PlatinumAwardforBestAnnualReportinBahasaMelayuandGold

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AwardforBestCSRReportawardedbytheNationalAnnualCorporateReportAwards(NACRA);

theInternationalBusiness•ReviewAwardforExcellenceintheRealEstateSector,HighwayConcessionManagement;

thePracticeSolutionAward•forPublicListedCompaniesfromtheNationalAwardforManagementAccounting(NAFMA)organisedbytheMalaysianInstituteofAccountants(MIA)andtheCharteredInstituteofManagementAccountants(CIMA);

theStarbiz-ICRMalaysia•CorporateResponsibilityAwardforMarketplaceandWorkplace;and

theIndustryExcellence•Award,DistinctionAwardandBestConductofAGMAwardfromtheMinorityShareholderWatchdogGroup.

Inaddition,ournewlyacquiredsubsidiary,TERAS,receivedthefollowingawardsin2010:

CertificateofMerit,STAR•OutstandingBusinessAwardsfromtheSTARNewspaper;

EthicalBusinessExcellence•AwardintheLargeCorporationCategoryfromtheMinistryofDomesticTrade,CooperativesandConsumerism;and

4-StarSMECompetitiveness•RatingforEnhancement(SCORE)fromSMECorpMalaysia.

ThesesymbolsofrecognitionfortheprofessionalismandhardworkputinbytheGroup’smanagementandemployeesstandasatestamenttotheimpactthatwehavemadenotonlyonthetollexpresswayindustry,butonthefaceofMalaysianbusinessitself.

corporate Responsibility

Asthelargesttollexpresswayoperatorinthecountry,ourcommitmenttocorporateresponsibilityremainsfocusedoncreatingasaferenvironmentonMalaysianroads,particularlyonthePLUSexpressways.Towardsthisend,theGroupinvestedoverRM73millionin2010ontheimplementationofvariousroadsafetymeasuresatseveralstrategiclocationsalongourexpressways.Asaresultofthesemeasures,thenumberofaccidentsrecordedattheselocationsin2009hasbeenreducedbyabout75%in2010.

Onawidernationalscale,ouraward-winningMalaysiansUniteForRoadSafety(MUFORS)campaignentereditssecondyearof implementationfollowingtheinaugurationon9September2009.InreachingouttotheMalaysianpublictodrivehometheimportanceofroadsafety,weunveiledtheMUFORSGalleryinAugust2010,providingavenueforexhibitions,workshopsandotheractivitiesaimedatraisingroadsafetyawarenessthrougheducation.WealsocontinuedourseminarsonRespectYourLimitsacross13statesinPeninsularMalaysia,SabahandSarawak,aimedprimarilyatdrivers,ownersandoperatorsofheavyvehiclesandbuses.

Thehighlightfor2010however,wasMUFORSRoadReels,ashortfilmcompetitioncarryingthethemeAttitudesonRoads–AMalaysianJourney.Openedtostudentsoflocaluniversitiesandinstitutionsofhigherlearning,RoadReelswasaimedatempoweringstudentstohavetheirsaywhileprovidingaplatformfortheirparticipationinchangingattitudesandbehavioursonMalaysianroadsthroughtheuseofcreative

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media.WeareexcitedandproudtoreportthatcreativefilmmakingisaliveandwellinMalaysiaasevidencedbythewinnersinallcategoriesofMUFORSRoadReels!

Althoughroadsafetyformsthecoreofouron-goingcorporateresponsibilityprogramme,werecognisethatwehavearesponsibilitytopreservetheenvironmentaroundusinordertoprotectthewell-beingoffuturegenerationsofMalaysians.Inthisrespect,oureffortsin2010centredaroundimprovingETCpenetrationatourtollplazasinordertoreduceourimpactonairqualityanddevelopingnewelectronicforms,ticketingandcomputerisedsystemsasameansofreducingtheuseofpaper.InresponsetothenewEnvironmentalQuality(Sewage)Regulations2009whichcameintoeffectinDecemberofthatyear,wealsoimplementedanumberofupgradingprojectstoimprovetheperformanceofSewageTreatmentPlants(STPs)atselectedRestandServiceAreas.InSeptember2010,welaunchedourfirstGreenRSAatSg.Perak(Southbound)withtheimplementationofenergy-

efficientdesignsolutionsaspartoftherenovationworksandtheintroductionofvariousgreentechnologiesincludingfoodwastecompostingandtheuseofbio-degradableproductssuchasbio-baseddetergents.

Ofcourse,ourresponsibilityasagoodcorporatecitizenalsoextendstoallouremployees,contractorsandotheragents.Withthisinmind,weundertookin2010toextendtheOccupationalHealthandSafetyManagementSystem(OHSAS18001)developedatPLUStoallotherconcessioncompaniesintheGroup.Also,whilewehaveconsistentlypromotedsportsandotheroutdooractivitiesamongourstaffovertheyears,in2010some300PLUSRondaofficersweregiventheopportunitytoattendacourseonHealthandFitnessforPatrolmen,designedtoaddressspecifichealthandsafetyissuesfacedbythisgroupoffrontlineemployeeswhileonthejob.

WealsocontinuedtoofferbusinessopportunitiesatourRestandServiceAreasandselectedlaybystolocalcommunitiesfromsurroundingareas,andtoassistthemasmuchaspossiblebyorganisingcoursesonFoodSafety&Hygiene,the2009FoodActandMinistryofHealthRegulationsandGuidelines.

fUTURE cHALLENGES

On15October2010,YangAmatBerhormatthePrimeMinisterofMalaysiaannouncedunderthe2011NationalBudget,thattherewouldbeafreezeontollratesforthenextfiveyearsapplicabletoalldomestichighwaysunderPLUSExpressways.Subsequently,theBoardofDirectorsofPLUSExpresswaysreceivedajointofferfromUEMandEPFtoacquirethebusinessandundertakingsoftheGroup,inclusiveofallassetsandliabilitiesforaconsiderationofRM23billion.ThetransactionwasapprovedbytheshareholdersattheCompany’sadjournedEGMon23February2011.

Notwithstandingthechangeinshareholdingstructureuponcompletionofthistransaction,attheoperationallevel,itwillbebusinessasusual.ThiswillleadtotheprivatisationofPLUSExpresswaysfromapubliclistedcompanytoaprivatecompany.PLUSExpresswaysremainscommittedtoprovidingthehighestlevelofserviceandoperationalefficiencythathavecometobeexpectedbyour

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customersandthepublicasawhole.Infacingthechallengesthatlieahead,wewillcontinuetoimplementinnovativecostsavinginitiativesandotherimprovementswhilecarryingonourstrategicbusinessexpansionplans,bothdomesticallyandintheinternationalarena.Asalways,ourguidingprinciplewillbetocreatevaluethatcanelevatetheGrouptogreaterheightsandsustainthedeepandcontinuedconfidenceofallourstakeholders.

AckNOWLEdGEMENTS

OnbehalfoftheBoardofDirectorsofPLUSExpressways,IwouldliketotakethisopportunitytothankeveryoneinvolvedintheGroup’ssuccesstodate.Toourcustomers,thankyouforyourcontinuingsupportasPLUSExpresswaysentersanewerainthehistoryofitsoperations.

TothePrimeMinister’sDepartment,MinistryofWorks,MinistryofFinance,MinistryofTransport,EconomicPlanningUnit,Public-PrivatePartnershipUnit,PublicWorksDepartment,MalaysianHighwayAuthority,RoyalMalaysianPolice,RoadTransportDepartment,RoadSafetyDepartment,MalaysianInstituteofRoadSafetyResearch,therespectivestategovernmentsandlocalauthoritiesandallotherministriesandagencieswhohavelentustheirutmostsupportduringtheyear,thankyouforallyourguidanceandcooperation.

Toourotherbusinesspartners,suppliersandfinanciers,yourcontributionstoourmanyaccomplishmentsasaGrouparehighlyappreciated,andwehopeyouwillstaywithusasourjourneycontinues.Ourmajorshareholders,KhazanahNasionalBerhadandUEMhavealsosupportedtheCompanyinmeetingthechallengesinourbusiness.

Thisyear,IwouldliketorecordmyspecialthankstoallthoseinvolvedinmakingMUFORSandourRespectYourLimitsroadsafetycampaignaresounding,award-winningsuccess.Truly,youreffortshavehelpedsaveliveswhilecreatinggreaterawarenessabouttheimportanceofpersonalresponsibilityinimprovingthesafetyofMalaysia’sroadsandhighways.

MydeepestgratitudemustgototheManagementandstaffofPLUSExpresswayswhomakeitallpossiblethroughtheirunyieldingcommitmenttoexcellenceineveryaspectoftheGroup’sbusinessoperations.TotheManagingDirector,YBhgDato’Noorizah,congratulationsonbeingnamedMasterclassBumiputeraWomanCEOoftheYearfor2010andonreceivingtheMalaysiaBusinessLeadershipAwardfortheConcessionSectorawardedbytheKualaLumpurChamberofCommerce.YoursuccessreflectstheGroup’ssuccessandweareproudtohaveyouatthehelmoftheorganisationinthesetimeswhengreatleadershipiscalledfor.

TomyesteemedcolleaguesontheBoardofDirectors,thankyouallforyourcontinuedhardworkanddedicationinfulfillingtheGroup’sobligationtogoodcorporategovernanceandethicalbusinesspractices.

WewillcontinuetobuildthePLUSExpresswaysGroupintoaglobalplayerinthetollexpresswaysbusinesswhileservingthenationandtherakyatofMalaysia,inlinewiththeGovernment’semphasison“PeopleFirst,PerformanceNow”.

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TRAffIc GROWTH

TrafficgrowthacrosstheGroup’ssubsidiariesinMalaysiaexceededexpectationsin2010,buoyedbythestrongeconomicrecoverywhichresultedinaGDPof7.2%.

DespitetheemergenceofalternativeroutesintheformofLebuhrayaKajang–Seremban(LEKAS)andLebuhrayaKemuning–ShahAlam(LKSA),PLUSrecordedahealthyyear-on-yeargrowthintrafficvolumeof7.7%whileELITEsurpassedprojectedfigurestoregisteranimpressivegrowthof11.4%.TherapiddevelopmentofnewtownshipsatSetiaAlamandKotaDamansaraalongtheNewKlangValleyExpresswayandatFederalHighwayRoute2contributedtothegrowthalongthePLUSurbanhighways,withhighertrafficatELITEattributedtosimilartownshipdevelopmentsatShahAlam,PutraHeightsandBandarSaujanaPutra.

AtLINKEDUA,year-on-yeartrafficgrowthjumpedto21.5%,dueinparttothe30%reductionintollfaresatTanjungKupangwhichcameintoeffecton1August2010,aswellasrapiddevelopmentatNusajaya,KotaIskandarandGelangPatah.ForKLBK,trafficgrowthmorethandoubledto9.2%comparedagainst4.4%growthachievedin2009.

LEvERAGING ON NETWORk EXPANSION ANd AcQUISITIONS

deferred Interchanges

UndertheSupplementalConcessionAgreementbetweenPLUSBerhadandtheGovernmentofMalaysia,atotalofthreenewinterchangesaretobebuiltatBukitGambirinJohorandatAlorPongsuandTaipingWestinPerak.

ConstructionofthetrumpetinterchangeandtollplazaatBukitGambircommencedin2010withtheadvanceearthworksscheduledforcompletioninAugust2011.ProvidingadirectlinkfromtheNSEtoBukitGambirandSgMativiatheJ33StateRoad,thenewinterchangeisexpectedtoreducetraveltimetoMuarbyapproximately15minutes.

Similarly,theproposedtrumpetinterchangeandtollplazaatAlorPongsu,scheduledtocommenceconstructioninQ4of2011,willprovideadirectlinkfromtheNSEtoSelamaandBaganSeraiviatheFederalRouteFT147,reducingtraveltimetoBaganSeraibyasmuchas30minutes.

InthecaseoftheproposedTaipingWestInterchange,theGovernmenthasagreedforPLUStoconstructaninterchangeandtollplazaatSgBuayainSelangorinstead,linkingtheNSEdirectlytoBandarBaruSgBuayaandKgTanjungviatheB56StateRoad.WithearthworksscheduledtocommenceinQ2of2011,thenewtrumpetinterchangeatSgBuayawillprovideanalternativeaccessfortravellersheadingtoSgBuaya,SgChoh,SerendahandNorthRawang,reducingtraveltimetotheseareasby15to30minutes.

Acquisitions

On15June2010,PLUSExpresswaysenteredintoasharesaleagreementwiththeUEMGrouptoacquire1,000,000ordinarysharesofRM1eachrepresenting100%equityinterestinTERASTeknologiSdnBhd(TERAS)foratotalcashconsiderationofRM44.0million.TheacquisitionofthetollsystemsproviderwasinlinewiththeCompany’sstrategicplantodrivebusinessgrowththroughvalueaccretiveexpansionopportunitiesand

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isexpectedtoimprovethevaluechainoftheGroupwhilebroadeningitsrecurringearningsbase.

Afewdaysearlieron11June2010,PLUSExpresswayshadconcludedtheacquisitionof3,334,000ordinarysharesofRM1eachinTouch‘nGoSdnBhd(TnG)fromUEMLandHoldingsBerhad.Theresulting20%equityinterestinTnGwillprovideanimportantopportunityforPLUSExpresswaystoparticipateintheElectronicPaymentSystemorEPSmarketasthenationmovestowardstheconvenienceandefficiencyofane-paymentsociety.

International Projects

InIndia,PLUSExpresswayscompletedtheacquisitionof49%interestinInduNavayugaInfraProjectPvt.Ltd.(INIPPL)on2June2010,thussecuringmajorityrepresentationontheBoardofDirectorsandmanagementcontroloverthebusinessoperationsofINIPPL.TollcollectionalongtheINIPPL’s

38.6kmstretchofhighwayfromPadalurtoTrichyinTamilNadu,hadcommencedslightlylessthanamonthearlieron6May2010,withaconcessionperiodof25yearsendingon26November2031.

InthestateofMaharashtra,ourIndiansubsidiaryPLUSBKSPTollLimited,succeededinobtaininganextensionoftheconcessionperiodfortheBhiwandi-Kalyan-Shilphata(BKSP)TollRoad.Theextensionto3March2015from28April2013wasgiveninconsiderationofdelaysinthehandingoveroflandforconstruction.Tolloperations,whichcommencedinAugust2009,contributedtotheGroup’soverallrevenuegrowthforthefirsttime,recordingarevenueofRM15.1millionfortheyearunderreview.

InadditiontotheacquisitionoftheINIPPLandon-goingoperationsoftheBKSPTollRoad,PLUSExpresswaysalsomadeasuccessfulbidfortheRM655millionJetpur–SomnathfourlaningprojectinGujarat.On13September2010,the30-yearconcessionwasawardedbytheNationalHighwayAuthority

ofIndia(NHAI)toPLUSExpresswaysanditsjointbiddingpartner,IDFCProjectsLtd.Aspecialpurposevehiclewassubsequentlyformedbythetwopartiestoundertaketheprojectandon7February2011,theNHAIenteredintoaConcessionAgreementwiththeresultingforeignassociatecompany,Jetpur–SomnathTollwaysLtd.

Meanwhile,inIndonesia,PLUSExpresswaysdisposedofitsentireequityinterestinPTCimanggisCibitungTollways(CCTW)toPTBakrieandBrothersTBK.ThiswillallowtheGrouptofocusitsresourcesonconstructionofthe116kmCikampek–PalimananExpresswayinWestJavaviaits55%stakeinPTLintasMargaSedaya(LMS).

TodatetheGovernmentofIndonesiahasacquired90%ofthelandrequiredfortheprojectwhichconstitutesthelongestsectionoftheTransJavaExpressway.

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Asatend2010,internationalprojectsaccountedforabout24%ofthetotallengthofexpresswaysundertheGroup’sportfolio.

ENHANcING OPERATIONAL EffIcIENcY

Going cashless

ThecommencementoffullElectronicTollCollection(ETC)operationsatLINKEDUA’sLimaKedaiTollPlazaon15July2010sawtheGroupmoveonestepclosertowardsthegoalofmakingcashlesstolltransactionsanationwidereality.

ThethirdtollplazatogocashlessafterBangunanSultanIskandarattheJohorBahruCausewayandTanjungKupangalsoonLINKEDUA,themovetofullETCoperationsatLimaKedaiprecededa30%tollreductionatTanjungKupangwhichcameintoeffecton1August2010toencouragemorecross-bordertravelbetweenMalaysiaandSingaporeviaLINKEDUA.

OtherinitiativesundertakentowardsencouraginggreateruseofETClanesatalltoll

plazasincludedthecontinuedpromotionofthePLUSTrackfleetcardandPLUSMilesloyaltyprogramme.With33PLUSTrackCorporatemembersconstituting2,760fleetvehiclesandmorethan300,000PLUSMilessubscribersregisteredtodate,theGroupsawoverallETCpenetrationincreaseby3.4%from51.1%in2009to54.5%in2010.

Improving Traffic Management

AsofDecember2010,atotalof57CCTVcamerashavebeeninstalledatstrategiclocationsalongourexpressways,providingasurveillancecapabilitythatallowsthelatesttrafficsituationtobemonitoredandassessedfromourTrafficMonitoringCentre(TMC)atPersadaPLUS.

Inmeetingoperationalneedsduringtheyear,wealsoinstalledthreenewVariableMessageSigns(VMS)atSlimRiver,SimpangPulaiandChangkatJering,increasingthetotalnumberofVMSto24.TogetherwiththeAutomaticVehicleDetectionSystem(AVDS)installedathighvolume

stretchesintheKlangValley,thecombinedsystemisabletoprovideexpresswayuserswithreal-timetravelinformationviatheVMStherebyimprovingthewaywemanagetrafficonourexpressways.2010alsosawtheintroductionoftwitterasanalternativetothePLUSMobileAlert(PLUSMA)smsservicefordisseminatingtrafficinformationtoexpresswayusers.

Inanefforttoimprovetrafficmanagementfurtherthroughthedistributionoftraveltononpeak-hours,thePLUSTravelIncentive(PTI)implementedon1January2009wascontinueduntil31December2010,offeringdailyoff-peakdiscountsof10%toClass1userspayingtollatPLUSandELITEexpresswaysbetween12midnightand7a.m.ThePTIwasalsoimplementedforoff-peaktravelonsixselecteddaysduringmajorfestiveseasonssuchasChineseNewYearandHariRayaAidilFitri.Over30millionClass1vehiclestookadvantageoftheprogrammewithdiscountstotallingmorethanRM20millionfortheyear.

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TheTravelTimeAdvisory(TTA)firstintroducedtwoyearsagoalsocontinuedtocontributetosmoothertrafficflowduringthefestiveseasons.

2010 Savings from Efficiency Initiatives

AtotalsavingofRM15.0millionwasrealisedin2010fromthecontinuedexecutionofProjectBETA,whichstandsfor“BoostingEfficiencyTransformingAttitude”.Asthenamesuggests,ProjectBETAwasfirstimplementedin2009asameansofimprovingvarioussystemsandprocesseswithintheorganisationintermsofefficiency.Focusingonroutinemaintenance,claimsmanagement,operationsmanpowerplanningandemployeeperformancemanagement,ProjectBETAhashadapositiveimpactonoverallproductivitythroughimprovedplanning,resourceutilisationandstreamliningofactivities.Theprojecthasalsoledtogreaterempowermentandanincreasedsenseofownershipamongouremployeesaswellasourcontractors.

AfurthersavingofRM11.3millionwasachievedin2010throughseveralprocessimprovementsbroughtaboutbyelevenSixSigmaprojectsundertakenduringtheyear.TheseincludedthereductionoftolloperationscoststhroughtheintroductionofElectronicFormsForToll(eFforT),reductionofrejectedETCtransactionsand

othertollviolationsthroughtheupgradingofsystemsoftwareandintroductionofthePLUSTrackfleetcard,revenueenhancementthroughtheoptimisedutilisationofPoint-of-Sales(POS)andcostreductionsthroughtheoptimisationofmanpowerresources,introductionofanti-theftcomponentstoreducevandalismandearlydetectionofrepairandreplacementworkstoavoidmoreexpensiveheavyrepairs.TheSixSigmaprojectsalsoservedtofosterbetterteamintegrationanddevelopleadershiptalentamongparticipatingemployees.

E-biddingproceduresintroducedatGrouplevelin2009continuedtoyieldbenefitstotheCompany,recordingasavingofRM7.6million.

Upgrading Projects

Thetotalspendonupgradingworkscarriedoutin2010wasapproximatelyRM60million.

Ofthisamount,RM26.6millionwasspentonthemajorrefurbishmentofpublicfacilitiesatRestandServiceAreas(RSAs)locatedatAyerKeroh(Northbound),Pagoh(Northbound)andDengkil(Southbound)aswellastheSouthboundlaybysatNilaiandSgBakap.TheAyerKerohRSArefurbishmentworkswereconstructedusingtheIndustrialisedBuildingSystem(IBS)andwerecertifiedaccordinglybytheCIDBinline

withtheGovernment’sgoalfortheconstructionindustrytomovetowardstechnologyintensiveactivitiesasameansofstayingcompetitivewhiledeliveringhighqualityproductsandvalueformoney.

AfurtherRM7.8millionwasusedfortolllaneextensionworksandupgradingofthetollsystemattheAlorSetarSelatan,JalanDutaandLukutTollPlazaswhileRM5.0millionwenttowardstheinstallationofnewVMSequipmentatstrategiclocationsontheNSEand

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LINKEDUAtoproviderealtimetravelinformationtoexpresswayusers.NewstreetlightingwasalsoinstalledattheBangi,KajangandPermatangPauhInterchangesforimprovedsafetyandsecurityatacostofRM2.1million.

OtherupgradingworksundertakenatRSAsandlaybysduringtheyearincludedtheinstallationofnewsewagetreatmentplantfacilitiesatJuruLayby(Southbound)andatMambaualongtheSeremban–PortDicksonHighway,whilethesurauandtoiletfacilitiesatGunungSemanggolRSA(Northbound)andtheChangkatJering,SgBulohandTgMalimTollPlazaswerealsogivenafacelift.

Maintenance Works

TheGroupcontinueditsstructuredapproachtomaintenancein2010,focusingonapreventivemaintenancestrategythatintegratesnetworkplanningactivitieswithassetconditionassessment,defectsinvestigation,designandimplementationofrectificationworksandinformationmanagement.Plannedinspectionsconductedatperiodicintervalsensuredtheearlydetectionofdefectsandoptimisationofrepaircostsandotherresources.

PavementStructuralOverlayworks,beingakeycomponentofannualplannedpreventivemaintenancemeasures,werecarriedouttorestorestructuralcapacityatelevenlocationscovering165lane-kmofasphalticpavements.Other

pavementrepairstoimprovefunctionalityandridingqualityandalleviatesoftgroundproblemswereimplementedatover80locationsalongthePLUSexpressways.

Wealsoundertooksloperehabilitationworksat57locationsduringtheyeartomaintainthesafety,serviceabilityandintegrityofthePLUSexpresswayswhileexpandingourReal-TimeMonitoringSystem(RTMS)tocoverthemonitoringofidentifiedfloodproneareasinadditiontomonitoringrainfallandgroundwaterfluctuationstofacilitateearlyinterventionforthepreventivemaintenanceofslopes.

SpecialbridgeinspectionswerecarriedoutbytheoriginaldesignconsultantsfortheMalaysia-SingaporeSecondCrossingandtwootherbridgesalongtheNSEatSgJunjungandSgMalai.Afurther110repairswerecarriedouttobridges,culvertsandotherdrainagestructures.

HUMAN cAPITAL dEvELOPMENT

Performance culture

Asaservice-orientedcompany,theworkcultureatPLUSExpresswaysisverymuchperformance-drivenwitheachindividualemployeeresponsibleforasetofKeyPerformanceIndicators(KPIs)orKeyResultAreas(KRAs)designedtoensureorganisationalperformanceasdefinedintheCorporateScorecard.

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ThePerformanceManagementSystem(PMS)measuresindividualKPI/KRAachievementsaswellasbehaviouralcompetenciesandformsthebasisforthedistributionofrewardsandotherformsofrecognitiontoemployeesthroughouttheCompany.

2010sawtheGroupcontinuetofosterthecloserelationshipestablishedbetweenouremployeesandSeniorManagementthroughaseriesofcommunicationprogrammeswhichincluded:

• QuarterlyManagementBriefingstoDivision/DepartmentHeads,RegionManagersandSectionManagers;

• QuarterlyStaffBriefingstoallemployeesatheadquartersandallregions;and

• InformaldialoguesessionsreferredtoasSepetang Bersama Pengarah Urusan,heldbetweentheManagingDirectorandnon-managerialstaff.

WealsointroducedtheTalian SahabatprogrammeinJuly2010toprovideaplatformforstafftobeabletohighlightanygrievancestheymayhaveandtoputforwardideasandsuggestionsforimprovement.TheinformationreceivedthroughTalian SahabatistreatedasconfidentialinlinewiththeWhistleBlowerPolicythatwasintroducedayearearlierinJuly2009.

Talent ManagementOnastrategiclevel,theGrouphasidentifiedapoolof131talentedemployeeswhoarecurrentlythefocusofathree-yearon-goingexercisetotake

onleadershiproleswithintheorganisationaspartofanestablishedformalSuccessionPlan.CareeraspirationsandcompetencylevelsformthebasisfordesigningtheIndividualDevelopmentPlanforeachoftheseemployeestomeetoverallorganisationalneedsintermsofhumancapitaldevelopment.

Naturally,traininganddevelopmentprogrammescontinuetoplayakeyroleinsupportofourTalentManagementinitiativesandouraspirationtoremainanemployerofchoice.Employeesateverylevelintheorganisationareexposedtoawidevarietyoflearningexperiencesrangingfromskillstrainingandmotivationalcoursestotechnicalvisitsand

opportunitiestoparticipateinaformalContinuingEducationProgramme(CEP)fromCertificateuptoMastersDegreelevel.

EmployeesarealsoencouragedtoparticipateinKnowledgeSharingsessionsasameansoftransferringlearning,informationandskillstoothercolleagues.

In2010,selectedemployeesattendedanumberofinternationalconferencesandseminarsheldeitheroverseasorhereinMalaysia,includingITSCanadaandthe3rdInternationalConference&ExhibitiononSlopes.WesentanothertwocandidatestoNagoyainJapantoundergotrainingunderourPersonnelExchangeProgrammewiththeCentralNipponExpresswayCompanyLimitedwhileathirdcandidatewassecondedtothePublic-PrivatePartnershipUnit(UKAS)inthePrimeMinister’sDepartment.

AfurthersixemployeesattheJuniorExecutivelevelweregiventheopportunitytoparticipateintheEmergingLeadershipProgramme,an18-monthleadershipdevelopmentcourseorganisedbytheUEMLearningCentre.

Firminourbeliefthatleadersmustbenurturedinallechelonsoftheorganisationstructure,wealsoorganisedatotalofsevenin-housetrainingprogrammesduringtheyear,designedspecificallyforourfrontlineandclericalstaffwhomakeupmore

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than75%ofourtotalworkforce.Inordertoaccommodateourin-housetrainingneeds,weexpandedourTrainingCentreatPersadaPLUS,increasingourclassroomcapacityfrom40to140withtheadditionofthreenewtrainingrooms,whilstmaintainingtheITTrainingRoomwhichhas25computerworkstationsforITtrainingpurposes.

cORPORATE RESPONSIbILITY

corporate Responsibility Is About People

Aswithcharity,corporateresponsibilitybeginsathome,andwiththisinmind,PLUSExpresswaysconsistentlystrivestoprovideasafeandhealthyworkenvironmentforallouremployees,contractorsandotheragents.

In2010,weextendedtheOccupationalHealthandSafetyManagementSystem(OHSAS18001)developedatPLUStoallotherconcessioncompaniesintheGroup.OtherinitiativesduringtheyearincludedtheimplementationofacourseonHealthandFitnessforPatrolmenwhichwasattendedbyabout300PLUSRondastaff,anda2-daycourseonemergencyresponseconductedbytheSelangorCivilDefenceDepartmentaswellasabriefingbytheFireDepartmentonBuildingEvacuation,foroccupantsofPersadaPLUS.EmployeeslocatedwithintheCompany’sheadquarters

complexinSubangarealsoabletomakeuseofthewell-equippedgymandothersportsfacilitiesincludingtwoindoorbadmintoncourts,twotenniscourtsandafootballfieldbuilttoFAMstandards.

ThePLUSChildDevelopmentCentre(PLUSCDC)isanotherfacilityofferedtoemployeesatPersadaPLUSwhoaretheparentsofveryyoungchildren.

Officiallylaunchedon8January2010bythewifeoftheHonourablePrimeMinisterofMalaysia,DatinSeriRosmahMansor,thePLUSCDCisaMontessorischoolthatpromoteslearningthroughplayforchildrenbetweentwoandahalfandfouryearsofage.Enrolment

in2010grewfrom24to40childrenwithannualeventssuchastheAnnualGraduationConcertandSportsDayformingthehighlightinthePLUSCDCcalendarfortheyear.

Improvingaccessforpeoplewhoarephysicallydisabledwasalsohighonthelistofissuesthatwecontinuedtoaddressin2010,bothatourownofficepremisesaswellasatourRSAsandlaybysundergoingrefurbishment.Towardsthisend,itisarequirementforthedesignofallupgradingworkstocomplywiththeCodeofPracticeforAccessforDisabledPeopletoPublicBuildings(MS1184:1991).Improvementsthathavebecomeastandardfeatureinourdesignsincludetheprovisionofdedicatedparkingforthedisabledwithunobstructedaccessfromtheparkingareatothebuilding,specialisedwheel-chairfriendlyfittingssuchastoilets,sinksandgrabbarsandrampswithhandrailsandnon-slipfinishes.

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PLUSExpresswayshasbeeninvolvedinthepromotionanddevelopmentofmotorsportsatthegrassrootslevelsince2009throughtheFormulaPLUSGo-KartTalentSearch.In2010,theprogrammewasexpandedfromfourtoninestatescomprisingPahang,Terengganu,Kelantan,Kedah,Johor,NegeriSembilan,Melaka,SelangorandKualaLumpur.EndorsedbytheAutomobileAssociationofMalaysia(AAM)andsupportedbytheMinistryofYouthandSports,aRoadTourtotheninestateswasheadedbyTeamPLUSMotorsportambassador,NabilJefriwho,at16yearsold,madehisdebutasFormulaOne’syoungestTestDriverinthesameyear.InnurturingouryoungMalaysiandriverstobecomenationalkartingchampions,theprogrammehasalsoinstilleddiscipline,teamwork,responsibility,timemanagementanddefensivedrivingskillsaswellasbasicknowledgeofenginesandcartechnologytothetargetgroupofyoungtalents.

Road Safety

AtotalofRM73.0millionwasinvestedin2010ontheimplementationofvariousroadsafetymeasuresatseveralstrategiclocationsalongourexpressways.Theseincludedtheconstructionofhighfrictioncoursepavementsurfacing,installationofcrashcushions,theuseofstrongerright-of-wayfencingmaterials,upgradingtohighcontainmentguardrailswithpostsat2-meterspacingandenhancementoftrafficsignsanddirectionalsignboardsforimprovedvisibilityandguidance.Wealsointroducednewinnovationstoouroperationssuchastheuseofportablescreensataccidentsitesdesignedtodiscourageothermotoristsfromslowingdowntolookattheseaccidents.Asaresultofthesemeasures,thenumberofaccidentsrecordedattheselocationsin2009hasbeenreducedbyabout75%in2010.

TheMalaysiansUniteForRoadSafety(MUFORS)campaignalsogainedmomentumin2010,earningtheMeritAwardforBestCommunityCampaignattheGlobalCSRAwardsinSingapore.Duringtheyearmorethan250,000peopleloggedontotheMUFORSwebsitetoVotetoSaveLivesandVotetoReduceAccidentsandDeathsontheRoad.

WelaunchedtheMUFORSGalleryon20August2010incollaborationwiththeMinistryofWorks,MalaysianHighwayAuthority,RoadSafetyDepartment,MalaysianInstituteofRoadSafetyResearch(MIROS)andotherrelevantagencies,creatingaspaceforexhibitions,workshopsandotherexperientialactivitiesdesignedtogiveroadsafetyadvocacyafreshapproach.

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WealsocollaboratedwithsomeofMalaysia’smosttalentedcelebritypersonalitiestoproducetheMUFORSthemesongandpromotionalvideoandcontinuedourseminarsonRespectYourLimitsacross13statesinPeninsularMalaysia,SabahandSarawak.Thehalf-dayprogrammeaimedatpromotingroadsafetyawarenessamongdriver,ownersandoperatorsofheavyvehicleshasbeenshowntohavehadapositiveimpactonthenumberofaccidentsinvolvingexpressbusesandlorriestravellingontheNorth-SouthExpressway(NSE).In2010,thisnumberfelltojust6accidentsper1,000vehicles,comparedto7accidentsper1,000vehiclesin2009.

On4August2010,welaunchedMUFORSRoadReels,ashortfilmcompetitionopenedtostudentsoflocaluniversitiesandinstitutionsofhigherlearning.CarryingthethemeAttitudeson

Roads–AMalaysianJourney,thecompetitionattractedover140entries,withatotalof264studentsparticipatingfrom35universitiesandcollegesfromalloverMalaysiaincludingSarawak.Apartfromempoweringthesestudentstomakeadifferenceonourroadsthroughtheuseofcreativemedia,thecompetitionalsosoughttoencouragemorepeoplefromallwalksoflifetotakeownershipofroadsafetyissues.

Reducing Our Impact On The Environment

PLUSExpresswayshaslongrecognisedtheneedtoadvocatesustainablebusinesspractices,productsandservicesthataredesignedtopreserveandprotecttheenvironmentfromharm.OurEnvironmentalManagementSystemensuresthesystematicmonitoringofday-to-dayoperationalactivitiesandisatestamenttoourcommitmenttowardsencouragingsustainableandequitabledevelopmentthroughthepromotionofenvironmentalawarenessamongouremployees,stalloperatorsandcontractorsaswellasourcustomersandbusinesspartners.

In2010,wetookstepstoreduceourimpactonairqualitythrougheffortstoincreasetheusageofElectronicTollCollection(ETC)andbyaskingourcustomerstoturnofftheirengineswhenparkedatanyofourRSAsorlaybys.WealsocarriedoutanumberofupgradingprojectstoimprovetheperformanceofselectedSewageTreatmentPlants(STPs)inaccordancewiththenewEnvironmentalQuality(Sewage)Regulations2009whichcameintoeffecton10December2009.

InSeptember2010welaunchedourfirstGreenRSAatSgPerak(Southbound),withthethemeJejak HijauorGreenTrail.TheRSAunderwentextensiverenovationwiththeconstructionofanewtoiletcomplexdesignedtoincorporatenaturalventilation

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andprayerroomsthattakeadvantageofnaturallightingtosaveenergycosts.Thedeckareawasbuiltonstiltsandcolumnsinordertoavoiderosionbymaintainingthenaturalcontourofthesurroundingland,andnoisebarrierswereconstructedtoreducenoisepollutioncreatedbyvehiclesontheexpressway.

OthergreentechnologiesintroducedatthisRSAincluderecyclingbinsforseparationofrecyclablewasteatsourceandtheuseofarecycledEcoCleanerMachineandnaturalbio-degradableproductssuchasbio-baseddetergents.Inaddition,theimplementationoffoodwastecompostingatthislocationisexpectedtoreduceourcarbon-footprintwhileprovidingasourceofnaturalfertiliserstooffsetlandscapemaintenancecosts.

OtherinitiativesundertakenbytheGroupduringtheyearthatcontinuetohaveapositiveimpactontheenvironmentincludedeffortstoreduceroadaccidents,monitorslopestabilityandmanagescheduledwastes.Inaddition,thedevelopmentandimplementationofinnovativeproductsandtechnologiessuchastheeFforT,ReceiptonDemand(ROD),VehicleRegistrationNumber(VRN)systemandGeneralOnlineData(GOLD)havereducedourneedforpaper,therebyreducingtheneedtodestroymoretreesandforests.

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ChAIRMAN Tan Sri Dato’ Mohd Sheriff Mohd Kassim

NON-EXECUTIVE DEPUTY ChAIRMANDato’MohdIzzaddinIdris

MANAGING DIRECTORDato’NoorizahHjAbdHamid

TanSriDatukK.RavindranSenior Independent Non-Executive Director

HassanJa’afarNon-Independent Non-Executive Director

DatukMohamedAzmanYahyaNon-Independent Non-Executive Director

QuahPohKeatIndependent Non-Executive Director

DatukSeriPanglimaMohdAnnuarZainiIndependent Non-Executive Director

Dato’SeriIsmailShahudinNon-Independent Non-Executive Director

AUdIT cOMMITTEE MEMbERS•QuahPohKeat(Chairman)

•TanSriDatukK.Ravindran•DatukSeriPanglimaMohdAnnuarZaini

INvESTMENT cOMMITTEE MEMbERS•TanSriDato’MohdSheriffMohdKassim(Chairman)

•Dato’MohdIzzaddinIdris•DatukMohamedAzmanYahya•Dato’NoorizahHjAbdHamid•Dato’SeriIsmailShahudin

NOMINATIONS ANd REMUNERATION cOMMITTEE MEMbERS•TanSriDato’MohdSheriffMohdKassim(Chairman)

•TanSriDatukK.Ravindran•QuahPohKeat

cOMPANY SEcRETARIES•TanHweeThian[MIA1904]

•NoorMeizaAhmad[LS0009016]

REGISTEREd OffIcEMenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsan,MalaysiaTel:+60376664666/78016666Fax:+60376664400/78016600www.plus.com.my

HEAd/MANAGEMENT OffIcEMenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsan,MalaysiaTel: +60376664666/78016666Fax:+60376664400/78016600www.plus.com.my

AUdITORSMessrsErnst&YoungCharteredAccountantsLevel23A,MenaraMileniumJalanDamanlelaPusatBandarDamansara50490KualaLumpur,MalaysiaP.O.Box1104050734KualaLumpurTel:+60374958000Fax:+60320955332www.ey.com

PRINcIPAL bANkERS

CIMBBankBerhadMalayanBankingBerhadHSBCBankMalaysiaBerhad

SHARE REGISTRAR

SymphonyShareRegistrarsSdnBhdLevel6,SymphonyHouseBlockD13,PusatDaganganDana1JalanPJU1A/4647301PetalingJayaSelangor,MalaysiaTel: +60378418000Fax:+60378418008www.symphony.com.my

STOck EXcHANGE LISTING

MainMarketBursaMalaysiaSecuritiesBerhad

CORP

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TanHweeThianistheDirector,SecretarialofUEMGroupManagementSdnBhdandtheJointCompanySecretaryofPLUSExpresswaysBerhad.HeisalsotheJointCompanySecretaryofUEMGroupBerhad,UEMLandHoldingsBerhadandothercompaniesintheUEMGroup.HeisaFellowoftheAssociationofChartedCertifiedAccountants,UnitedKingdom,amemberofTheMalaysianInstituteofCharteredSecretariesandAdministratorsandaChartedAccountantoftheMalaysianInstituteofAccountants(MIA).

Hestartedhiscareerwithapublicaccountingfirmandhadalsoworkedinagroupofcompanieswithdiversebusinessinterestsspanninginsurance,propertydevelopmentandmanagementservices.Hisworkexperienceinvolvedcompanysecretarial,administration,shareregistration,auditingandaccounting.

NoorMeizaAhmadistheHeadofLegalandSecretarialSupportDepartmentofPLUSExpresswaysBerhad(“PEB”).ShejoinedPEBon12October2009andwasappointedastheJointComapanySecretaryofPEBon2December2009.

PuanNoorMeizahasvastexperienceinlegalandsecretarialmattersandpriortojoiningPEB,shewastheHeadofLegalandCorporateServicesDepartmentofMISCIntegratedLogisticsSdnBhd,asubsidiaryofMISCBerhad.

TAN hWEE ThIAN

NOOR MEIzA AhMAD

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Members of the BoardStanding, left to right

DatukSeriPanglimaMohdAnnuarZaini,Dato’SeriIsmailShahudin,TanSriK.Ravindran,Dato’MohdIzzaddinIdris,TanSriDato’MohdSheriffMohdKassim(Chairman),Dato’NoorizahHjAbdHamid,DatukMohamedAzmanYahya,QuahPohKeat,HassanJa’afar

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> Tan Sri Dato’ Mohd Sheriff Mohd Kassim chairman

TanSriDato’MohdSheriffMohdKassim,aMalaysianaged71,isaNon-IndependentNon-ExecutiveDirectorandChairmanofPLUSExpresswaysBerhad.HewasappointedasaDirectoroftheCompanyon29January2002andwasmadeChairmanon7February2002.

TanSriDato’MohdSheriffholdsaB.A.(Honours)EconomicsdegreefromUniversityofMalaya,aDiplomainEconomicDevelopmentfromOxfordUniversity,UnitedKingdomandaM.A.EconomicsfromVanderbiltUniversity,USA.HewastheManagingDirectorofKhazanahNasionalBerhadfrom1994toAugust2003afterservingastheSecretaryGeneralofTreasury,MinistryofFinancefor3years.HewastheDirectorGeneraloftheEconomicPlanningUnitfrom1989to1991.TanSriDato’MohdSheriffistheChairmanoftheMalaysianInstituteofEconomicResearch,PresidentoftheMalaysianEconomicAssociationandalsoservesastheNon-ExecutiveChairmanofManulifeHoldingsBerhad,ScientexBerhad,StandardCharteredBankMalaysiaBerhad,ProjekLebuhrayaUtara-SelatanBerhad,KonsortiumLebuhrayaButterworth-Kulim(KLBK)SdnBhdandProjekPenyelenggaraanLebuhrayaBerhad.TanSriDato’MohdSheriffisaNon-ExecutiveDirectornominatedbyKhazanahNasionalBerhad,amajorshareholderofPLUSExpresswaysBerhad.HecurrentlyservesasChairmanoftheNominationsandRemunerationCommitteeandtheInvestmentCommitteeoftheBoard.

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> dato’ Mohd Izzaddin Idris DeputyChairman

Dato’MohdIzzaddinIdris,aged48,wasappointedasNon-IndependentNon-ExecutiveDeputyChairmanofPLUSExpresswaysBerhadon7July2009.HeisalsotheManagingDirector/ChiefExecutiveOfficerofUEMGroupBerhad.

Dato’MohdIzzaddinholdsaBachelorofCommerceDegree(FirstClassHonoursinFinance)fromUniversityofNewSouthWalesAustraliaandisaFellowofCPAAustraliaandamemberofMalaysianInstituteofAccountants(MIA).Hehasover20years’experienceininvestmentbanking,financialandgeneralmanagementandwaspreviouslytheChiefFinancialOfficer/SeniorVicePresident(GroupFinance)ofTenagaNasionalBerhad,apositionheheldfromSeptember2004toJune2009.

HewasformerlyaSeniorVicePresident(CorporateFinance)ofSouthernBankBerhadandtheChiefFinancialOfficerofRanhillBerhadandalsoheldthepositionofChiefOperatingOfficerofMalaysianResourcesCorporationBerhadinthelate1990s.AftergraduatinginJune1985,Dato’MohdIzzaddinservedwithMalaysianInternationalMerchantBankersBerhadforalmost11yearswhichincludeda3-yearsecondmentinthelate1980stoBarclaysdeZoeteWeddLimited,aLondon-basedinvestmentbankandasubsidiaryofBarclaysBankPLCthen.

Dato’MohdIzzaddincurrentlysitsontheBoardofProjekLebuhrayaUtara-SelatanBerhad,UEMLandHoldingsBerhad,CementIndustriesofMalaysiaBerhad,TIMEEngineeringBerhad,OpusGroupBerhad,FaberGroupBerhad,UEMBuildersBerhad,SunriseBerhadandseveralotherprivatelimitedcompanies.Dato’IzzaddinalsositsontheBoardofCommissionerofPTLintasMargaSedayaandBoardofCommissionerofPTCimanggis-CibitungTollways,PLUSExpresswaysBerhad’ssubsidiariesinIndonesia.

Dato’MohdIzzaddinisaNon-ExecutiveDirectornominatedbyUEMGroupBerhad,amajorshareholderofPLUSExpresswaysBerhad.HeservesasamemberoftheInvestmentCommittee.

> dato’ Noorizah Hj Abd Hamid Managing director

Dato’NoorizahHjAbdHamid,aMalaysianaged51,wasappointedastheManagingDirectorofPLUSExpresswaysBerhad(PEB)on1April2007.Priortothat,shewastheManagingDirectorofFaberGroupBerhadfrom17March2003.ShewasalsotheManagingDirectorofFaberHotelsHoldingsSdnBhdsince3August2002.SheholdsaMastersinBusinessAdministration,majoringinFinanceandManagementandaBachelorofScienceinBusinessAdministrationfromtheCentralMichiganUniversity,UnitedStatesofAmerica.

PriortojoiningRenongBerhadastheManagerofGroupCorporateAffairsinSeptember1991,shewasattachedtovariouspositionsinfinanceandcorporateadvisorywithasubsidiaryoftheTerengganuStateDevelopmentCorporation,PermodalanNasionalBerhadandAmanahMerchantBankBerhad.

InJanuary1992,shejoinedHBNManagementSdnBhdandwaslatertransferredtoProjekLebuhrayaUtara-SelatanBerhad(PLUS)asaSeniorManagerintheTreasuryDepartmentinJanuary1994.ShewastransferredbacktoHBNManagementSdnBhdinJanuary1996andappointedtothepostofSeniorManagerofGroupCorporateAffairs.

ShewaspostedbacktoPLUSasSeniorGeneralManager,Financein1997beforeassumingherdesignationastheChiefOperatingOfficerofFaberGroupon9August1999.DuringhertenureinFaberGroupshehasalsobeenappointedasaDirectorofvarioussubsidiarycompaniesofFaberGroup.

Currently,shealsositsontheBoardofCommissionerofPTLintasMargaSedayaandBoardofCommissionerofPTCimanggis-CibitungTollways,PEB’ssubsidiariesinIndonesia,BoardofDirectorsofPLUSBKSPTollLimited,InduNavayugaInfraProjectPrivateLimited,PEB’ssubsidiariesinIndia,BoardofProjekLebuhrayaUtara-SelatanBerhadandBoardofKonsortiumLebuhrayaButterworth-Kulim(KLBK)SdnBhd.SheisalsotheExecutiveDirectorofExpresswayLingkaranTengahSdn.Bhd.(ELITE),Linkedua(Malaysia)Berhad,PLUSHelicopterServicesSdnBhdandChairmanofTerasTeknologiSdnBhd.

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> Hassan Ja’afar Non-IndependentNon-ExecutiveDirector

HassanJa’afar,aMalaysianaged64,isaNon-IndependentNon-ExecutiveDirectorofPLUSExpresswaysandwasappointedasaDirectoroftheCompanyon18March2002.HassanwasthepastManagingDirectorofBBMBSecuritiesSdnBhd.HeholdsaBachelorofScienceDegreeinChemicalEngineeringfromtheUniversityofNewBrunswick,Canada.

HewasaprojectofficerfortheEconomicDevelopmentBoardofSingaporeandtheDevelopmentBankofSingaporeLimitedfrom1969to1974.HewasanInvestmentManagerforBankPembangunanMalaysiaBerhadfrom1974to1978.From1978to1990,hewastheGeneralManagerforBapemaCorporationSdnBhd.HewasappointedasanExecutiveDirectorofUMBCSecuritiesSdnBhdin1990andheserveduntil1994.HethenbecameanExecutiveDirectorofCapitalCorpSecuritiesSdnBhduntil1995.In1995,hewasappointedastheExecutiveDirectorofBBMBSecuritiesSdnBhd.

HealsositsontheBoardofCommissionerofPTLintasMargaSedayaandPTCimanggis-CibitungTollways,PLUSExpresswaysBerhad’ssubsidiariesinIndonesiaandholddirectorshipinProjekLebuhrayaUtara-SelatanBerhad.

HassanisaNon-ExecutiveDirectornominatedbyKhazanahNasionalBerhad,amajorshareholderofPLUSExpresswaysBerhad.

> datuk Mohamed Azman Yahya Non-IndependentNon-ExecutiveDirector

DatukMohamedAzmanYahya,aMalaysianaged47,isaNon-IndependentNon-ExecutiveDirectorofPLUSExpresswaysBerhad.HewasappointedasaDirectoroftheCompanyon3May2002.DatukMohamedAzmangraduatedwithfirstclasshonoursdegreeinEconomicsfromtheLondonSchoolofEconomicsandPoliticalScienceandisamemberoftheInstituteofCharteredAccountantsinEnglandandWales,theMalaysianInstituteofAccountantsandafellowoftheMalaysianInstituteofBanks.Heisthefounder,GroupChiefExecutiveandaDirectorofSymphonyHouseBerhad,alistedoutsourcinggroupandtheExecutiveChairmanofBoltonBerhad,alistedpropertygroup.

HesitsontheadvisorypanelsfortheNationalInnovationCouncilandtheSpecialTaskforcetoFacilitateBusiness(Pemudah)andisamemberoftheFinancialReportingFoundation.HesitsontheBoardsofKhazanahNasionalBerhad,MalaysianAirlineSystemBerhad,ScomiGroupBerhad,EkuitiNasionalBerhadandseveralotherprivatelimitedcompanies.DatukMohamedAzmanisaNon-ExecutiveDirectornominatedbyUEMGroupBerhadandamajorshareholderofPLUSExpresswaysBerhad.HecurrentlyservesasamemberoftheInvestmentCommittee.

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> Tan Sri datuk k. Ravindran SeniorIndependentNon-ExecutiveDirector

TanSriDatukK.Ravindran,aMalaysianaged53,isaSeniorIndependentNon-ExecutiveDirectorofPLUSExpresswaysBerhad.HewasappointedaDirectorofthePLUSExpresswaysBerhadon6May2002.TanSriDatukK.RavindranistheGroupExecutiveDirectorandco-founderoftheARAgroupofcompanieswhichhasinterestsininfrastructuredevelopment,engineering,constructionandtransportation.Aidedbyateamofablecolleagues,hewasinstrumentalindevelopingthegroupintoamulti-millionringgitcompany.

TanSriDatukK.RavindranholdsaBachelorofScienceHonoursdegreefromtheUniversityofMadras,India.Hehasblendedhiscorporateexertionswithinvolvementincharitablecauses,mainlyineducation.ThemainvehicleforthelatteristheAll-MalaysiaMalayaliEducationFoundation(AEF)ofwhichheisthePresident.Hesitsontheboardofseveralprivatelimitedcompanies.TanSriDatukK.RavindranservesasamemberoftheAuditCommitteeandtheNominationsandRemunerationCommittee.

> Quah Poh keat IndependentNon-ExecutiveDirector

QuahPohKeat,aMalaysianaged58,isanIndependentNon-ExecutiveDirectorofPLUSExpresswaysBerhad.HewasappointedasaDirectoron14January2008.HeisalsocurrentlyanIndependentNon-ExecutiveDirectorofIOICorporationBhd,TelekomMalaysiaBerhad,LonpacInsuranceBerhad,LPICapitalBerhad,CampubankLonpacInsurancePlcandPublicBankBhdandsomeofitsgroupcompanies.

PKQuahwasadmittedasamemberoftheMalaysianInstituteofCertifiedPublicAccountants(MICPA)in1976.HewasalsothebeststudentforallthreepartsoftheMICPAExaminationandwonmanyawardsintheInstituteofManagementAccountantsExaminations.

PKQuahisaFellowoftheMalaysianInstituteoftheTaxation,MemberoftheMalaysianInstituteofAccountants,MemberoftheMalaysianInstituteofCertifiedPublicAccountants,MemberoftheCharteredInstituteofManagementAccountantsandFellowoftheAssociationofCharteredCertifiedAccountants.

HewastheSeniorPartnerofKPMG(knowninsomepracticesasManagingPartner)from1October2000to30September2007andhasvastexperienceinAuditandTaxationinbothMalaysiaandUnitedKingdom.HeretiredfromKPMGMalaysiaon31December2007.HeisamemberofFMMStrategicPoliciesCommitteeandwasaformerVice-PresidentoftheMalaysianInstituteofTaxation.

PKQuahservesasamemberoftheAuditCommitteeandNominationsandRemunerationCommittee.

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> datuk Seri Panglima Mohd Annuar bin Zaini IndependentNon-ExecutiveDirector

DatukSeriPanglimaMohdAnnuarBinZaini,aMalaysianaged59,isanIndependentNon-ExecutiveDirectorofPLUSExpresswaysBerhad.HewasappointedasaDirectoron19December2008.

HeholdsaMasterofArtsinLaw&DiplomacyfromTheFletcherSchoolofLaws&Diplomacy,TuftsUniversity,USAandaBachelorofArtswithhonoursinEconomicsfromUniversitiKebangsaanMalaysia.

HebeganhiscareerinthegovernmentserviceasanAdministrativeandDiplomaticOfficerin1977.HeservedtheMalaysianGovernmentatvariousministriesanddepartmentsandalsothePerakStateGovernmentuntilhechosetotakeanoptionalretirementfromthegovernmentservicein1999.

HewasAdvisorandChiefExecutiveofNorthernCorridorImplementationAuthorityfrom2007to2009.HewastheChairmanofMalaysianNationalNewsAgency(BERNAMA)fromFebruary2004toJanuary2010.InFebruary2004,HRHTheSultanofPerakconsentedhisappointmentasMemberoftheCouncilofElderstoHRHSultanofPerak.HeisaMemberofthePerakCouncilofIslamicReligionandMalayCustomsandthePerakStateIslamicEconomicDevelopmentCorporation.HeisalsoaDistinguishedFellowtoInstituteofStrategicandInternationalStudies(ISIS)Malaysia,AdjunctProfessorofNorthernCorridorEconomicRegionResearchCentre,UniversitiUtaraMalaysia.

HealsoholdsdirectorshipsinMalaysianAirlineSystemBerhad,DijayaCorporationBerhadandafewprivatelimitedcompanies.

> dato’ Seri Ismail Shahudin Non-IndependentNon-ExecutiveDirector

Dato’SeriIsmailShahudin,aMalaysianaged60isaNon-IndependentNon-ExecutiveDirectorofPLUSExpresswaysBerhad.HewasappointedasaDirectoron21April2009.

Dato’SeriIsmailholdsaBachelorofEconomics(Honours)degreefromUniversityofMalaya,majoringinBusinessAdministration.

Dato’SeriIsmailShahudinjoinedESSOMalaysiaBerhad,uponhisgraduationin1974andservedfor5yearsinitsFinanceDivision.HethenjoinedCitibankMalaysiain1979andservedattheBank’sheadquartersinNewYorkin1984aspartoftheteaminAsiaPacificDivision.UponhisreturntoMalaysia,hewaspromotedtothepositionofVicePresident&GroupHeadofthePublicSectorandFinancialInstitutionsGroupinCitibankMalaysia.In1992,hejoinedMalayanBankingBerhadasGeneralManager,CorporateBankingandbecametheExecutiveDirectorin1997.In2002heleftMalayanBankingGroupBerhadtobecometheGroupCEOofMMCCorporationBerhad.HewasappointedtotheBoardofBankMuamalatMalaysiaBerhadandsubsequentlyappointedasitsChairmaninMarch2004untilhisretirementinJuly2008.

Dato’SeriIsmailShahudincurrentlysitsontheBoardsofMalayanBankingBerhad,UEMGroupBerhad,CementIndustriesofMalaysiaBerhad(CIMA),SMPCCorporationBerhad,EPManufacturingBerhad,MutiaraGoodYearBerhad,AseanaPropertiesLimited(acompanylistedontheLondonStockExchange),OpusInternationalConsultantsLtd,NewZealand,MCBBankLahore,Pakistanandseveralotherprivatelimitedcompanies.

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TEAM

MOHAMMAd fUAd kHUSAIRIOperations

HOW SEET MENGFinance

MOHd ZULASTRI MOHd AMINMaintenance&Development

JAMAL-Ud-dEEN NASIR kHANHumanCapitalServices&Regional

kHALILAH MOHd TALHACorporateCommunications

NOOR MEIZA AHMAdLegalandSecretarialSupport

MOHd HALMI MOHd HASSANInternalAudit

PLUS EXPRESSWAYS BERhAD

DATO’ NOORIzAh hJ ABD hAMIDManaging Director

TAJUL AzWA BANI hAShIMChief Operating Officer

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PLUS HELIcOPTER SERvIcES SdN bHdAZIZUddIN AbdULLAH AYEOPAviationManager

TERAS TEkNOLOGI SdN bHdAbd RAHIM SULAIMAN @ SELIMANChiefOperatingOfficer

HEAd Of OvERSEAS SUbSIdIARIES

PT LINTAS MARGA SEdAYA; PT cIMANGGIS cIbITUNG TOLLWAYSMUHAMMAd fAdZIL AbdUL HAMIdPresidentDirector

PLUS bkSP TOLL LIMITEd; INdU NAvAYUGA INfRA PROJEcT PRIvATE LIMITEd (INIPPL)AZMEE NINExecutiveDirector;ChiefExecutiveOfficer

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TheBoardisfullydedicatedinensuringthatthestructureandprocedurestosupportexcellentcorporateconductwillcontinuetoexist,notonlyintheirpresentform,butwillcontinuallybeenhancedandfortified.

ThisstatementsetsoutthecommitmentoftheBoardtowardstheprinciplesofgoodcorporategovernanceandtheextenttowhichithascompliedwiththebestpracticesoftheCodeonCorporateGovernance(Revised2007)(“Code”)throughoutthefinancialyearended31December2010.

A. THE bOARd Of dIREcTORS

The board

PLUSExpresswaysisledbyanexperiencedBoardcomprisinga

mixofmemberswithawiderangeofexperienceandexpertiseintherelevantfieldssuchasaccounting,economicsandmanagement,businessandbanking.Withtheirbroadrangeofskills,experienceandknowledge,theyeffectivelyoverseePLUSExpresswaysGroup’s(“theGroup”)businessactivities.

Asateam,theBoardbringstobearindependentandsoundjudgementonissuesencompassingstrategy,performance,resourcesandstandardsofconduct.TherolesandfunctionsoftheBoardaswellasthedifferingrolesofExecutiveDirectorsandNon-ExecutiveDirectorshavebeenclearlydefined.

The Board of Directors (“Board”) of PLUS Expressways Berhad (“PLUS Expressways” or “the Company”) upholds a high standard of corporate governance to safeguard the interests of all stakeholders, which include customers, shareholders, employees and the community.

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board composition

TheBoardhasnine(9)directorscomprisingone(1)Executivememberandeight(8)Non-Executivemembers,three(3)ofwhomareindependent.AbriefprofileofeachDirectorissetoutonpages44to49ofthisAnnualReport.

TheIndependentNon-ExecutiveDirectorsareindependentofmanagementandfreefromanybusinessrelationshipswhichcouldmateriallyinterferewiththeexerciseoftheirindependentjudgement.Theyplayanimportantrolein:

• EnsuringthatthestrategiesproposedbytheManagementareanalysedanddeliberated.

• Representingtheinterestsofnotonlytheminorityshareholders,butalsoofemployees,customers,suppliersandotherstakeholders.

• ProvidinganobjectiveandindependentviewtotheBoard.

TheCompanycompliedwiththeMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”)whichrequiresatleasttwo(2)Directorsorone-third(1/3)oftheBoard,whicheverishigher,tobeindependentandnon-executive.TheindependenceoftheNon-ExecutiveDirectorsisconstantlyreviewedandbenchmarkedagainstbestpracticesandregulatoryprovisions.

TheBoard’scompositionissuchthatnoindividualorgroupofindividualsdominatestheBoard’sdecisionmaking.

InaccordancewiththeguidelinesoftheCode,TanSriDatukK.RavindranistheSeniorIndependentNon-ExecutiveDirectorwhoseprimaryresponsibilityistodealwithconcernsregardingtheCompanywhichareinappropriatetobedealtwithbytheChairmanortheManagingDirector.

Roles of chairman and Managing director

TherolesoftheNon-IndependentNon-ExecutiveChairman,TanSriDato’MohdSheriffMohdKassimandtheManagingDirector,Dato’Noorizah

HjAbdHamidareseparatedwithcleardistinctionofresponsibilitiesbetweenthem.

TheChairmanisresponsibleinensuringtheintegrityandeffectivenessoftheBoardinallaspectsofitsroleandagenda,aswellasprovidingeffectivecommunicationchannelfortheBoardtoexpressviewsontheManagingDirectorandmanagement.TheManagingDirectorisresponsiblefortheimplementationofbroadpoliciesapprovedbytheBoardandsheisobligedtoreportanddiscussatboardmeetingsallmaterialmatterscurrentlyorpotentiallyaffectingtheGroupanditsperformance,includingallstrategicprojectsandregulatorydevelopments.

conflict of Interest

TheDirectorshaveacontinuingresponsibilitytodeterminewhethertheyhaveapotentialoractualconflictofinterestinrelationtoanymatter,whichcomesbeforetheBoard.TheCompanyandtheGrouphaveadoptedaprocesswherebyeachDirectorisrequiredtomakewrittendeclarationswhethertheyhaveanyinterestintransactionstabledatregularboardmeetingsoftheGroup.

board Appointment Process

TheCompanyhasinplaceformalandtransparentproceduresfortheappointmentofnewDirectors.TheseproceduresensurethatallnomineestotheBoardarefirstconsideredbytheNominationsandRemunerationCommittee,takingintoaccounttherequiredmixofskillsandexperienceandotherqualities,beforemakingarecommendationtotheBoardandmajorshareholders.

Forthebenefitofnewlyappointeddirectors,aninductionprogrammeisconductedinorderforthemtofamiliariseandunderstandtheGroup’soperationsandaffairs.

board Appraisal Process

InlinewiththeMalaysianCodeonCorporateGovernance,theBoardhasimplementedaprocesscarriedoutbytheNominationandRemunerationCommitteefortheannualassessmentoftheeffectivenessoftheBoardanditscommitteesaswellascontributionsofeachDirector.

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TheassessmentisbeingcarriedoutbywayofanAssessmentSurveyFormthatistobecompletedbyeachDirector.TheformcoversareasofBoardStructure,BoardMeetings,BoardPapers,BoardCommunication,StrategicPlanning,PerformanceManagement,HumanCapitalManagement,RiskManagement,OverallComments,Directors’SelfandPeersEvaluationandBoardCommittees.AsummaryofthefindingsispresentedtotheNominationandRemunerationCommitteeforitsreviewandtheCommitteewillthenrecommendimprovementactionplansbeforebeingpresentedtotheBoardforfinaldeliberationandapproval.

board Responsibilities

TheBoardretainsfullandeffectivecontroloftheCompany.ThisincludesresponsibilitiesindeterminingtheCompany’soverallstrategicdirection,thedevelopmentandmanagementoftheGroup’sbusinessesaswellasreviewingtheadequacyandeffectivenessoftheinternalcontrolsystemoftheCompanyandtheGroupasawhole.TheBoardisalsoresponsibleinidentifyingprincipalrisksandensuringtheimplementationoftheappropriatesystemstomanagetheserisks.

Keymatters,suchasapprovalofannualandinterimfinancialresults,materialacquisitionsanddisposals,materialagreements,majorcapitalexpenditures,budgets,theKeyPerformanceIndicator,theCorporateScorecard,long-termplansandsuccessionplanningforthetopmanagementarereservedfortheBoard’sdeliberationanddecisionmaking.

TheBoard,asawhole,overseesresponsibilityfordevelopingandrevisingtheGroup’sstrategies.TheManagingDirectorisresponsibleformakingandimplementingoperationaldecisionsgenerallybasedontheDiscretionaryAuthorityLimit(“DAL”)asapprovedbytheBoard.TheNon-ExecutiveDirectorscomplementtheskillsandexperienceoftheManagingDirectorbycontributingtheirknowledgeandexperienceofotherbusinessesandsectorstotheformulationofpoliciesanddecisionmakingoftheCompany.

fiduciary duties of directors

TherelationshipbetweenaDirectorandtheCompanyisbasedonprincipleoffiduciaryduties,wherebyeachDirectorisrequiredtoactbonafideinthebestinterestoftheCompany,asawhole.Inthisrespect,theDirectorsarerequiredtodeclaretheirrespectiveshareholdingsintheCompanyandrelatedcompanies.DirectorsarealsorequiredtodeclaretotheBoardtheirinterestsinanycontractsorproposedcontractswiththeCompanyoranyofitsrelatedcompanies.TheDirectorswillabstainfromanydecisionmakinginrelationtotransactionsinwhichtheyhaveaninterest.

TofurtherassisttheBoardindischargingitsresponsibilitiesmoreeffectively,three(3)committeeshavebeensetup:Audit,NominationsandRemunerationandInvestmentCommittees.EachcommitteehastheauthoritytoreviewspecificissuesdelegatedbytheBoardandtoreporttotheBoardwithitsrecommendations.Theultimateresponsibilityforthefinaldecisiononallmatters,however,lieswiththeBoard.

Number of directorships in companies

EachDirectoroftheCompanyholdsnotmorethanten(10)directorshipsinpubliclistedcompaniesandnotmorethanfifteen(15)directorshipsinnon-listedcompaniesasdefinedandinaccordancewiththeMainMarketListingRequirements.CompliancewiththeBursaSecuritiesListingRequirementsinthisrespectensuresthattheDirectorsareabletocommitsufficienttimeandresourcestoeffectivelydischargetheirresponsibilitiestotheCompany.DetailsofdirectorshipsofeachDirectorareasfollows:

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board Meetings

TheBoardmetthirteen(13)timesforthefinancialyearended31December2010whereitdeliberatedonandconsideredvariousmattersincludingbutnotlimitedto:

TheGroup’sfinancialandoperational•performance,

Budgetsanddividends,•

AnnualReport,•

Relatedpartytransactionsandrecurrent•relatedpartytransactions,

AnnualOperatingPlan2011,Corporate•ScorecardandManagingDirector’sScorecardandHeadlineKeyPerformanceIndexforfinancialyear2010,

Localandforeigninvestmentopportunities,•

Localandforeignacquisitionnamely•acquisitionof49%equityinInduNavayugaInfraProjectsPvt.LtdinIndia,100%equityinTerasTeknologiSdnBhdand20%equityinterestinTouch‘nGoSdnBhd;

Statusandprogressupdates–existing•projectsinIndonesiaandIndia(includingbutlimitedtooperationsandfinancialupdates).

TheGroup’sInvestorRelationsPolicy.•

MattersrelatingtoHumanResourceandstaff•benefits;

Progressof2010RiskRegisterforPLUS•ExpresswaysBerhad;and

OfferbyUEMandEPF(“JointOfferrors”)to•acquireallofthebusinessandundertaking,includingallassetsandliabilitiesofPLUSExpresswaysBerhad.

No Name of director Status

Number of directorships

In Listed company

In Non Listed company

1TanSriDato’MohdSheriffMohdKassim

Non-IndependentNon-ExecutiveChairman

3 6

2 Dato’MohdIzzaddinIdrisNon-Independent

Non-ExecutiveDeputyChairman

4 9

3 Dato’NoorizahHjAbdHamid ManagingDirector 1 1

4 HassanJa’afarNon-Independent

Non-ExecutiveDirector1 1

5DatukMohamedAzmanYahya

Non-IndependentNon-ExecutiveDirector

5 5

6 TanSriDatukK.RavindranSeniorIndependent


7 QuahPohKeatIndependent


8DatukSeriPanglimaMohdAnnuarZaini

IndependentNon-ExecutiveDirector

3 5

9 Dato’SeriIsmailShahudinNon-Independent


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TheBoardisallowedtoconductitsmeetingbywayoftele-conferencingasprovidedinArticle57BoftheCompany’sMemorandumofAssociation.PriortoBoardmeetings,theBoardisfurnishedwithsufficientandappropriatequalityinformationfromtheManagementand,wherenecessary,thirdpartyconsultantsareengagedtoadvisetheBoard

onthemattertoenabletheBoardtoeffectivelydischargetheirresponsibilities.AllproceedingsoftheBoardmeetingsarerecorded.

DetailsofeachDirector’smeetingattendanceduringthefinancialyearended31December2010areasfollows:

No Name of director StatusNo. of board

Meetings Attended



11/13*

2 Dato’MohdIzzaddinIdrisNon-Independent

Non-ExecutiveDeputyChairman11/13*

3 Dato’NoorizahHjAbdHamid ManagingDirector 13/13*

4 HassanJa’afarNon-Independent

Non-ExecutiveDirector11/13*

5 DatukMohamedAzmanYahyaNon-Independent

Non-ExecutiveDirector10/13#*

6 TanSriDatukK.RavindranSeniorIndependent

Non-ExecutiveDirector13/13

7 QuahPohKeat IndependentNon-ExecutiveDirector 13/13#

8DatukSeriPanglimaMohdAnnuarZaini

IndependentNon-ExecutiveDirector 13/13#

9 Dato’SeriIsmailShahudinNon-Independent

Non-ExecutiveDirector7/13#*

# The total number is inclusive of meeting attended via tele-conference.

* The Board meetings held on 15 October 2010, 27 November 2010, 21 December 2010 and 23 December 2010 were Special Board meetings held specifically to deliberate on the offers that PEB received to acquire all the business and undertaking, including all assets and liabilities of PEB and were not part of the annual calendar of Board Meetings. The offers received included the Joint Offer from UEM and EPF. Several directors, namely Tan Sri Dato’ Mohd Sheriff Mohd Kassim, Dato’ Mohd Izzaddin Idris, Dato’ Noorizah Hj Abd Hamid, Datuk Mohamed Azman Yahya, Encik Hassan Ja’afar and Dato’ Seri Ismail Shahudin are directors interested in the Joint Offer (Interested Directors). Hence, Interested Directors abstained from all deliberations pertaining to the Joint Offer, and did not attend the above mentioned Special Board meetings other than Dato’ Noorizah Hj Abd Hamid who attended the Special Board meetings to provide information to the Independent Directors due to her role as Managing Director of the Company.

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Access to Information and Advice

TheBoardrecognisesthatthedecisionmakingprocessishighlydependentonthereliabilityandcompletenessofinformationfurnishedtoit.Assuch,theBoardmembershavefullandunrestrictedaccesstoinformationontheGroup’sbusinessandaffairs,whetherasafullBoardorintheirindividualcapacity,indischargingtheirduties.TheBoardreceivestimelyadviceonallrelevantinformationabouttheGroup.

PriortoBoardmeetings,theDirectorsreceivetheagendawithrelevantreportsandafullsetofBoardpaperscontaininginformationrelevanttothematterstobedeliberatedatthemeeting.TheBoardpapersarecomprehensiveandencompassbothquantitativeandqualitativefactorstofacilitateprudentandinformeddecisionmaking.TheminutesofthepreviousBoardmeetingarealsocirculatedtotheDirectorsandconfirmedateachmeeting.MinutesoftheBoardMeetingsaremaintainedattheRegisteredOfficeoftheCompany.

AllDirectorsalsohavefullaccesstotheadviceandserviceoftheCompanySecretariesinthecourseoftheirduties.TheCompanySecretaries

areresponsibleforensuringthatBoardmeetingproceduresareadheredtoatalltimesandthatapplicablerulesandregulationsarecompliedwith.Wherenecessary,theDirectorsmayobtainindependentprofessionaladviceattheCompany’sexpenseonspecificissuestoenabletheBoardtodischargetheirdutiesonmattersbeingdeliberated.

directors’ Training

TheCompanyacknowledgesthatcontinuouseducationisvitalforBoardmemberstogaininsightintothestateoftheeconomy,technologicaldevelopment,latestregulatorydevelopmentsandmanagementstrategiesinrelationstotheGroup’scorebusiness.

EveryDirectoroftheCompanyundergoescontinuoustraining.Inyear2010,theDirectorshaveattendedtraininginrelationtoamongstotherscorporategovernance,riskmanagement,securitiesmarketregulationanddirectors’dutiesandliabilities.

ThetrainingstatusofDirectorsasat31December2010,areasfollows:

NoName of director

List of Training/conference/Seminar/Workshop Attended


RiskManagementinIslamicforFIDEAlumni&CurrentParticipants•CompositeRiskRatingCommunicationMeetingwithBankNegaraMalaysia•TalkonCompetitionLawandItsImpactonUEMGroupofCompanies•Hi-TeaPresentationbyDrAbbasMirakhor,INCEIF’s•Directors’TrainingonUpdateofFinancialReportingStandards•UEMDirectorsGathering2010•

2Dato’MohdIzzaddinIdris

TalkonCompetitionLawandItsImpactonUEMGroupofCompanies•UEMDirectorsGathering2010•

3Dato’NoorizahHjAbdHamid

BursaMalaysiaEveningTalkonCorporateGovernance•UEMDirectorsGathering2010•MSWGIndexSeminar–CorporateGovernance•INVESTMalaysia•PLUSInternationalExpresswayConference&Exhibition2010(PIECE2010)•GlobalInfrastructureConferenceinNewYork•AsiaConferenceinNewYork•RBSInvestorsConferenceinSingapore•PEMANDU–EconomicTransformationProgram•MINDA–CEORoundtablewithDrMontekSinghAhluwalia•

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NoName of director


ASEAN100LeadershipFORUM2010•KHAZANAHMegatrendsForum•8thMalaysiaRoadConference&Exhibition2010•KHAZANAHGlobalLectures•TheAsiaPacificConference2010•ASEANFinanceMinister’sInvestorSeminar•

4 HassanJa’afar

PLUSInternationalExpresswayConference&Exhibition2010(PIECE2010)•ManagingTheRiskofDelay,DisruptionsandDisputesInConstruction•ContractsIn2010KhazanahMegatrendsForum2010–ReclaimingtheCommonCollaborating•&CompletingintheNewEconomicOrderUEMDirectorsGathering2010•

5DatukMohamedAzmanYahya

BoltonBODin-houseworkshop:CrisisCommunication•PLUSInternationalExpresswayConference&Exhibition(PIECE2010)Gala•Dinner:ModeratorfordialoguesessionwithF1driverHeikkiKovlainen&ex-F1andA1driverAlexYoongonroadsafetyetcLSEMalaysiaAlumniPublicLecture:Malaysia’sNewEconomicModel:The•NextStepsbyProfessorDannyQuahSCOMIGroupBerhad:ImplementingEffectiveProjectStrategies:Case•StudyontheMonorailProjectforMumbaiTalkonCompetitionLawandItsImpactonUEMGroupofCompanies.•KementerianKewanganMalaysia:MajlisKonsultasiBajet2010/2011–•SeizingGlobalOpportunities.ChairedbythePrimeMinisterThe7thSimeDarbyLectureSeries:SecuringTomorrow’sWorld–Using•Nature’sWealthMoreSustainablybyJonathonPorrittThe13thNationalHousing&PropertySummit.CEOPanel–“Whereisthe•HousingandpropertySectorHeading?”.OrganisedbyASLIPerdanaLeadershipFoundationCEOForum–“Approaching2020:•Malaysia’sDecadeForGrowth?–WhatMakesACorporationExceptional?”KhazanahMegatrendsForum2010•HARVARDCLUB/INTANCOLLOQUIUM:Talkonentrepreneurialfinanceand•venturecapital:WhatyouneedtoKnowbyProf.RobertC.HigginsUEMDirectors’Gathering2010•

6TanSriDatukK.Ravindran

DawnoftheNewDecade•EconomicTransformationProgrammeRoadmapLaunch•KhazanahGlobalLectures•

7 QuahPohKeat

MINDABreakfastTalk–MoralFoundationfromGoodGovernance•KPMGMalaysiaGSTSeminar2010,EveningTalkonCorporateGovernance•GuideBDOTaxForumService–GST:WhichHatAreYouWearing•RiskManagementinIslamicFinance•RiskManagementofDerivatives•BuildingOrganisationalCapacityfromStrategicTransformation•BuildingAuditCommitteeforTomorrow•KPMGMalaysianTaxSummit2010•FinancialIndustryConference2010•UEMDirectors’Gathering2010•

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Re-election of directors

TheCompany’sArticlesofAssociationprovidesthatone-third(1/3)oftheDirectorsinofficeforthetimebeing,oriftheirnumberisnotthree(3)oramultipleofthree(3),thenthenumbernearesttoone-third(1/3),aresubjecttoretirementbyrotationateachAnnualGeneralMeeting(AGM)andshallbeeligibleforre-election.TheDirectorslongestinofficesincetheirlastelectionshallretirefromofficeattheforthcomingAGMandshallbeeligibleforre-election.Directorswhoareover70yearsofagearerequiredtosubmitthemselvesforre-appointmentandre-electionannuallyinaccordancewithSection129(2)andSection129(6)oftheCompaniesAct,1965.DetailsoftheDirectorsseekingre-electionandre-appointmentattheforthcomingAGMaredisclosedintheNoticeoftheAGMonpage4ofthisAnnualReport.

b. bOARd cOMMITTEES

TheBoardhasdelegatedspecificresponsibilitiestothree(3)committeesi.e.AuditCommittee,NominationsandRemunerationCommitteeandInvestmentCommittee.TheseCommitteeshaveclearlydefinedtermsofreferencetoassistandsupporttheBoardinitsresponsibilitytooverseetheCompany’soperationsandtomakethenecessaryrecommendationsrelatingtheretofortheBoards’consideration.Atalltimes,theultimateresponsibilityforthefinaldecisiononallmatters,lieswiththeBoard.

(i) Audit committee

ThecompositionoftheAuditCommitteeandtheSummaryofattendanceofthemembersattherespectiveAuditCommitteemeetingsissetoutinAuditCommitteeReportonpage70ofthisAnnualReport.

TheBoardhasdelegatedcertainresponsibilitiestotheAuditCommittee,whichoperateswithinclearlydefinedtermsofreference.ThetermsofreferenceoftheAuditCommitteeandtheiractivitiesaresetoutonpages71to75ofthisAnnualReport.

(ii) Nominations and Remuneration committee

TheNominationsandRemunerationCommitteeisresponsibletoassisttheBoardinreviewingtheperformanceofSeniorManagementanddirectors.ThecommitteeisalsoresponsibleinrecommendingtotheBoard,theappointmentofnewdirectors,afterdueconsiderationoftheirskills,knowledge,expertise,experience,professionalismandintegrity.ItalsoreviewsandrecommendstotheBoardannualincrements,bonusandex-gratiapaymentfortheManagingDirectors,andifinstructedbytheBoard,reviewsproposalsfortheremunerationpackagesofeachmemberoftheCompany’sBoardCommittees.

NoName of director


8

DatukSeriPanglimaMohdAnnuarZaini

GovernanceRiskManagement&Compliance:WhatAuditCommitteesand•ChiefAuditExecutiveShouldKnowUEMDirectorsGathering2010•

9Dato’SeriIsmailShahudin

TalkonCompetitionLawandItsImpactonUEMGroupofCompanies•UEMDirectorsGathering2010•

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TheNominationsandRemunerationCommitteedeliberatedandrecommendedtotheBoardtoapproveforinclusionintheNoticeforthe8thAnnualGeneralMeeting,theRetirementandRe-electionofDirectors.TheNominationsandRemunerationCommitteealsodeliberatedandrecommendedtotheBoardthe2009BonuspaymentandsalaryadjustmentsfortheManagingDirector,theChiefOperatingOfficerandtopmanagementofthePEBGroup,salaryadjustmentfortheChiefOperatingOfficerandrenewalofemploymentcontractforSeniorManagement.

(iii) Investment committee

ThecompositionofInvestmentCommitteeandtheattendanceofmembersatInvestmentCommitteemeetingsareasfollows:

Name of director Status Meeting Attendance

TanSriDato’MohdSheriffMohdKassim


4/4

Dato’MohdIzzaddinIdrisNon-Independent

Non-ExecutiveDeputyChairman2/4

Dato’NoorizahHjAbdHamid ManagingDirector 4/4

DatukMohamedAzmanYahyaNon-Independent


Dato’SeriIsmailShahudinNon-Independent


TheInvestmentCommitteeisonlyallowedtomakedecisionsinrespectofinvestmentsinexpresswaysrelatedbusinessinMalaysiaandoverseasatthetender/pre-qualificationstage.Intheeventthatthetender/pre-qualificationaresuccessful,furtherdetailsontheinvestmentwillbepresentedtotheBoardforitsfinaldecision.Inaddition,theInvestmentCommitteealsorecommendstotheBoardforallacquisitionsoflocalandforeigncompanies.OthertypesofinvestmentswhicharenotrelatedtotheexpresswaysindustrywillbedeliberatedbytheInvestmentCommitteeandrecommendedtotheBoardforfinaldecision.

c. dIREcTORS’ REMUNERATION

OtherthantheManagingDirector,allDirectorsarepaidafixedfeeandreceiveameetingallowanceforeachBoardorCommitteemeetingtheyattend.Directors’remunerationissubjecttoapprovalbytheshareholders.TheChairmanispaidahigherfeecomparedtootherBoardmembersinrecognitionofhisadditionalresponsibilities.

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atthree(3)NominationsandRemunerationCommitteemeetingsheldduringtheyearareasfollows:

Name of director Status Meeting Attendance

TanSriDato’MohdSheriffMohdKassim

Non-IndependentNon-ExecutiveChairman 3/3

TanSriDatukK.Ravindran SeniorIndependentNon-ExecutiveDirector 3/3

QuahPohKeat IndependentNon-ExecutiveDirector 3/3

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No Name of directorSalary fees

Other benefits and Emolument

benefit in kind Total

RM(‘000)

1 TanSriDato’MohdSheriffMohdKassim – 90 71 – 161

2 Dato’MohdIzzaddinIdris – 40 12 – 52**

3 Dato’NoorizahHjAbdHamid 938* – 35 77 1,050

4 HassanJa’afar – 40 11 – 51

5 DatukMohamedAzmanYahya – 40 12 – 52

6 TanSriDatukK.Ravindran – 54 18 – 72

7 QuahPohKeat – 72 21 – 93

8 DatukSeriPanglimaMohdAnnuarZaini – 54 17 – 71

9 Dato’SeriIsmailShahudin – 40 8 – 48

Total 938 430 205 77 1,650

* The amount is inclusive of salary, bonus and EPF (employer’s contribution)

** Paid to UEM Group Berhad

d. RELATIONSHIP WITH SHAREHOLdERS/INvESTORS

TheCompanyrecognisestheimportanceofeffectivecommunicationwithitsshareholders,otherstakeholdersandthefinancialcommunityonallmajordevelopmentsoftheGrouponatimelyandaccuratebasis.TheCompanymaintainsahighlevelofdisclosureandcommunicationswithitsstakeholdersthroughanumberofreadilyaccessiblechannels.

Annual Report and Annual General Meeting

TheannualreportisthekeychannelofcommunicationwithshareholdersandinvestorswhichincorporatescomprehensiveandsufficientdetailsaboutfinancialresultsandactivitiesoftheGroupthroughouttheyear.Aspartofcost-savinginitiativesandinsupportofthegovernment’sefforttoincreaseITawarenessamongmembersofthepublic,theGrouphasinitiatedthedespatchofitsannualreportinelectronicform(CD)toshareholders.Asummaryoffinancialdata,noticeofAGMandotherinformationisdistributedtogetherwiththeCDtoshareholders.ShareholdersmayalsorequestforprintedcopiesoftheannualreportineithertheEnglishorBahasaMalaysiaversions.TheannualreportisalsomadeavailableontheCompany’swebsite.

TheremunerationfortheDeputyChairmanispaidtoUEMGroup.TheManagingDirector’sremunerationiscontractualandreflectstheBoard’srecognitionofherskillsandexperienceintheindustry.ThelevelofremunerationofNon-ExecutiveDirectorscommensuratewiththeirexperiencesandlevelofresponsibilitiesandisdeterminedbytheBoard.

ThedetailsoftheremunerationoftheDirectors,paidandpayable,forthefinancialyearended31December2010areasfollows:

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TheAGMistheprincipalforumfordialogueandinteractionbetweentheshareholdersandtheBoardofDirectorsandseniormanagement.AttheAGM,shareholdersarebriefedoftheGroup’sfinancialperformanceandsignificantoperationaldevelopmentsforthefinancialyearaswellasthestrategyandoutlookfortheGroup.Shareholders’participationishighlyencouragedthroughthequestionandanswersessionontheGroup’sfinancialandoperationalperformance.ApressconferenceisheldimmediatelyaftertheAGMwheretheChairmanandManagingDirectorarepresenttoclarifyandexplainissuesraisedbythemedia.ItistheCompany’spolicytopromoteinteractionwithitsshareholdersinordertogivetheshareholdersafullerunderstandingoftheGroup’saffairs.

Website Information

TheGroup’swebsite,www.plus.com.myisaneffectivemediumofcommunicationandsourceofinformationtoshareholdersandthegeneralpublicbyprovidingcomprehensiveandup-to-dateinformationonPLUSExpresswaysandallitssubsidiaries.Thewebsiteisbeingupdatedregularlytoincludeallrelevantfinancialandoperationalinformationonatimelybasis.

E. AccOUNTAbILITY ANd AUdIT

Inpresentingtheannualfinancialstatementsandannouncementofthequarterlyfinancialresultstotheshareholders,theBoardaimstopresentabalancedandcomprehensibleassessmentoftheGroup’spositionandprospects.TheBoardisassistedbytheAuditCommitteetooverseetheGroup’sfinancialreportingprocessesandthequalityofitsfinancialreporting.

director’s Responsibility Statement in respect of the Preparation of the Audited financial Statements

TheDirectorsarerequiredbytheCompaniesAct,1965toensurethattheGroup’sfinancialstatementsarepreparedinaccordancewithapplicableapprovedaccountingstandardsandgiveatrueandfairviewofthestateofaffairsoftheGroupandtheCompanyattheendofthefinancialyearandoftheresultsandcashflowsoftheGroupandtheCompanyforthefinancialyear.

Inthecourseofpreparingtheannualfinancialstatements,theDirectorshave:

adoptedapplicableaccountingpoliciesand•appliedthemconsistently;

madejudgementsandestimatesthatare•prudentandreasonable;

ensuredthatallapplicableaccounting•standardshavebeenfollowed;and

preparedthefinancialstatementsonagoing•concernbasis.

TheDirectorsareresponsibleinensuringthattheCompanykeepsproperaccountingrecordsinaccordancewiththeprovisionsoftheCompaniesAct,1965.

TheDirectorshavetheoverallresponsibilitiesofmaintainingasoundsystemofinternalcontroltosafeguardshareholders’investmentandtheassetsoftheGroupwhichincludetakingreasonablestepsforthedetectionandpreventionoffraudandotherirregularities.

Statement on Internal control

TheStatementonInternalControlissetoutinpages64to68oftheAnnualReport.ItprovidesanoverviewoftheinternalcontrolenvironmentoftheGroup.

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fees paid/payable: Group (RM‘000) company (RM‘000)

StatutoryAuditServices 537 60

OtherServices* 458 232

Total 995 292

* Other services include amongst others cost verification, tender exercise, and dividend certification, review of cash flow projections, quarterly review and government compensation.

TheAuditCommitteealsomettwicewiththeExternalAuditorwithoutthepresenceofManagementforthefinancialyear2010.

AfullAuditCommitteereportissetoutinpages70to77ofthisAnnualReport.

financial Reporting

TheBoardaimstoprovideandpresentabalancedandmeaningfulassessmentoftheCompany’sfinancialperformanceprimarilythroughtheannualfinancialstatementsandquarterlyannouncementsoftheresultstotheshareholdersaswellastheChairman’sStatementandreviewofoperationsintheannualreport.

f. cOMPLIANcE STATEMENT

Forthefinancialyearended31December2010,theCompanyhascompliedwiththeprinciplesandbestpracticesassetoutintheCode.

G. AddITIONAL cOMPLIANcE INfORMATION

TheStatementonAdditionalComplianceInformationissetoutinpage69ofthisAnnualReport.

Relationship with the Auditors

AnappropriaterelationshipismaintainedwiththeCompany’sAuditorsthroughtheAuditCommitteeandtheBoardofDirectors.TheAuditCommitteehasbeenexplicitlyaccordedthepowertocommunicatedirectlywithboththeexternalandinternalauditors.

TheAuditCommitteemeetswiththeexternalandinternalauditorstodiscusstheauditplan,annualfinancialstatementsandtheirauditfindings.TheAuditCommitteemaintainsaformalyetopenandtransparentrelationshipwiththeexternalauditorsandisatlibertytorequestforameetingattheirdiscretion.

Thedetailsofthestatutoryaudit,auditrelatedandnon-auditfeespaid/payablein2010totheexternalauditorsareasfollows:

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TheBoardofDirectors(“Board”)ofPLUSExpresswaysBerhad(“PLUSExpressways”or“theCompany”)acknowledgesandaffirmstheimportanceofsoundinternalcontrolandriskmanagementpracticestoenablegoodcorporategovernance.Takingcognisanceoftheabove,

ThE BOARD ENSURES ThAT ThE SAID PRACTICES ARE IMPLEMENTED IN PLUS EXPRESSWAYS GROUP’S (“ThE GROUP”) WIDE BASIS INCLUDING ThE NEW ACqUIRED LOCAL AND OVERSEAS SUBSIDIARIES,namelyTERASTeknologiSdn.Bhd.andInduNavayugaInfraProjectPrivateLimitedIndia(“INIPPL”).TheBoardisultimatelyresponsibleandaccountablefortheoverallsystemofinternalcontrolandriskmanagement,whichincludestheestablishmentofanappropriatesystemaswellasthereviewofitseffectivenessandintegrity.

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Inviewofthelimitationsinherentinanysystemofinternalcontrol,suchasystemisdesignedtomitigateratherthaneliminaterisksoffailuretoachievecorporateobjectives.Accordingly,thesystemprovidesreasonableandnotabsoluteassuranceagainstmaterialerror,misstatementorloss.Thesystemofinternalcontrolcovers,interalia,riskmanagement,financial,operationalandcompliancecontrols.TheBoardconfirmsthatthesystemofinternalcontroloftheGroupwasinplaceduringthefinancialyear.ThesystemissubjecttoregularreviewbytheBoard.

KeyelementsoftheGroup’sinternalcontrolsystem,includingtheprocessesinplacetoreviewitsadequacy,areasfollows:

ORGANISATIONAL STRUcTURE

TheGrouphasawell-definedorganisationalstructurethatisalignedtoitsbusinessandoperationalrequirementsandeachstrategicoperatingfunctionisheadedbyaresponsibleDivisionalorDepartmentalHead.Clearlinesofaccountabilityandresponsibility,approval,authorisation,andcontrolprocedureshavebeenlaiddownandcommunicatedthroughouttheGroup.

cONTROL ENvIRONMENT

TheinternalcontrolmechanismisembeddedinthevariousworkprocessesandproceduresatappropriatelevelsintheGroup.TheworkprocessesandproceduresaredocumentedintheGroup’sStandardOperatingManualswhichhasbeencertifiedtobeinconformancewithISO9001:2008Standards.Thesemanualsassistinensuringcontinuityofworkpracticeandeffectivecontrolofvarioustasks.Asaresult,astructureforanorganisationwidecontrolhasbeenestablishedthroughouttheGroup.Continuouseffortsarealsobeingundertakenbytheheadsofdepartmentstoreviewandupdatethemanualsregularlyorwhenitisdeemednecessary,aidinginthesuccessfulimplementationofinternalcontrols.

HUMAN RESOURcE MANAGEMENT

TheGroupbelievesthatthekeystrategytomaintainbusinessgrowthinanenvironmentofintensecompetitionistoenhancetheoperationalefficiencyandproductivityofhumancapital.Thus,formalappraisalsguidedbyKeyPerformanceIndicator(“KPI”)parametersprovideaframeworktotranslateandalignthestrategyofhumancapitaldevelopmenttothetheGroup’sStrategicPlanandisbeingusedasaperformancemeasurementtool.TheGroupcontinuedtoemphasiseonthetalentandcompetenciesofemployeesthroughstrategicrecruitmentpracticesandcontinuoustraininganddevelopment.ThroughtheKPI’sparametersandTrainingNeedsAnalysis(“TNA”),employees’competenciesandgapsarebeingproperlyaddressedandsuitabletrainingprogrammesareidentifiedinordertomaximisehumancapitaldevelopmenttotheoptimumlevel.

INSURANcE ANd PHYSIcAL SAfEGUARdS

TheGroupundertakesadequateinsuranceandensurephysicalsafeguardonassetsinplacetoensurethattheassetsaresufficientlycoveredagainstanymishapthatwillresultinmateriallosses.

bUSINESS PLAN ANd bUdGET

TheGroupundertakesacomprehensivebusinessplanningandbudgetingprocesseachyear,toestablishgoalsandtargetsagainstwhichperformanceismonitoredonanongoingbasis.TheBoardparticipatesinthereviewandapprovaloftheBusinessPlanandBudget.Amonthlyreportingandreviewoffinancialresultsandforecasthasbeenestablishedandisconsistentlyobserved.ThequarterlyperformanceagainstbudgetisconstantlypresentedtotheBoard.

AUTHORITY LEvELS

TheGroupdocumenteditsDiscretionaryAuthorityLimits(“DAL”)whichclearlydefinethelevelofauthorityandresponsibilityinmakingoperationalandcommercialbusinessdecisions.Approving

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authoritiescovervariouslevelsofmanagementandincludestheBoard.TheDALisreviewedregularlyandanyamendmentsmadetotheDALmustbetabledtoandapprovedbytheBoard.

INfORMATION ANd cOMMUNIcATION

Whilethemanagementisresponsibletoensureproperimplementationofinternalcontrolprocedures,theBoardcanrequesttoreviewthestateofinternalcontrolsasandwhenitdeemsnecessary.TheBoardcanrequestforinformationandclarificationfrommanagementaswellastoseekinputsfromtheAuditCommittee,externalandinternalauditors,andotherexperts,andanycostsshallbebornebytheGroup.

AUdIT cOMMITTEE

TheAuditCommitteehasbeenestablishedbytheBoardsinceyear2002.TheAuditCommitteecomprisesthree(3)membersoftheBoard,allofwhomareindependentdirectors.ItstermsofreferencetogetherwiththeAuditCommitteeReportaredisclosedinpages70to77ofthisAnnualReport.

INTERNAL AUdIT fUNcTION

TheInternalAuditDepartment(“IAD”or“theDepartment”)ofPLUSExpresswaysBerhadactsasanindependentappraisalfunctiontoassisttheAuditCommitteeindischargingtheirdutiesandtoprovideassurancetoManagementandtheBoardthatallinternalcontrolsareinplace,adequate,andfunctioningeffectivelywithintheacceptablelimitsandexpectations.IADstrivestoprovidethemeansfortheGrouptoaccomplishitscontrolobjectivesbyintroducingasystematicanddisciplinedapproachinevaluatingandimprovingtheeffectivenessofriskmanagement,internalcontrolandgovernanceprocesses.Thepurpose,authorityandresponsibilityofIADaswellasthenatureofassuranceandconsultancyactivitiesprovidedtotheGroupareclearlyexpressedintheInternalAuditCharterasapprovedbytheAuditCommittee.Inordertopreserveitsindependence,IADdirectlyreportstotheAuditCommitteeregularlyaspartofitsfunctionsand

alsoprovideupdatestotheManagingDirectoronadministrationmatters.

ActivitiesofIADareguidedbytheAnnualInternalAuditPlanwhichisreviewedandapprovedbytheAuditCommitteeonayearlybasis.Therisk-basedauditplanisdevelopedtocoveroperational,informationtechnology,strategicandfinancialactivitiesthataresignificanttotheoverallperformanceoftheGroup.Atpresent,IADhasbeenstructuredtohavetwo(2)auditunits,CorporateAuditUnit(“CAU”)andOperationsAuditUnit(“OAU”),andanAnalysisUnit(“AU”).AUisresponsibletoprovideoverallmanagementofthedepartmentaswellasrendertechnicalandanalyticsupporttoCAUandOAU.CAUprimarilyactsasanassuranceunitwhichreviewstheeffectivenessofthesystemofinternalcontrol,highlightinganyareasforimprovementandsubsequentlymonitorstheimplementationofitsrecommendations.Ontheotherhand,OAU’sobjectivesaretoevaluatetheeffectivenessandefficiencyofexistinginternalcontrolsfortolloperations,recommendenhancementtotheinternalcontrolswherenecessaryandtominimiseoreliminatetheriskofinternaltollfraud.

Asanintegralpartofthemanagementprocess,IADfurnishestheManagementwithindependentanalysis,appraisals,counselandinformationontheactivitiesunderreview.ThekeyinternalauditactivitiesthataddvaluetotheGroupcanbesummarisedasfollows:

1. ReviewtheoperationalactivitiesandverifythattheprincipalobjectivesarealignedtooverallGroup’sobjectives.

2. Identifyallauditableactivitiesandrelevantriskfactorsandassesstheirsignificance.

3. Performresearchandgatherinformationthatisaccurate,factualandcomplete.

4. Analyseandexaminetheoperationseffectivenessandefficiency.

5. Analyseandexaminetransactionsdatatoidentifyelementsoffraudulentactivities.

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6. Provideassuranceoncompliancetostatutoryrequirements,laws,Grouppoliciesandguidelines.

7. RecommendappropriatecontrolstoovercomedeficienciesandenhanceGroupoperations.

8. EvaluateproceduresinplacetosafeguardGroup’sassets.

9. AssistManagementinestablishingaproperriskmanagementframework,assessingrisks,monitoringtheeffectivenessoftheriskmanagementprogramandensuringtheadequacyoftheinternalcontrolsystem.

Inyear2010,CAUconductedfifteen(15)auditsinaccordancetotheapprovedAnnualAuditPlanandthree(3)adhocassignmentsasrequestedbytheAuditCommitteeortheManagement.OAU,whichfocusesonthecompliancetotolloperationalprocedures,conductedeighteen(18)complianceauditsatallSectionsandseventyseven(77)spotchecksatselectedtollplazas.Thefrequencyandselectionoftollplazastobespotcheckedweredeterminedbythelevelofpossibleinternaltollfraudriskofeachofthetollplazas.Fortheyear2010,nine(9)internaltollfraudcaseswereinvestigatedbyOAU.TheinvestigationprocessinvolvedverificationoftolltransactionsdocumentationaswellasvalidityusingtheCloseCircuitTelevision(“CCTV”)imagerecordings.Astoprovidefurtherassuranceontheintegrityofthetolltransaction,OAUalsoconductedtransactiondataanalysisaswellasmonitoringofcompliancetoproceduresduringmajorfestiveperiods.Thescopeofauditengagementsisalsoalignedwiththeprimaryrisksoftheorganisationanditskeystrategicinitiatives.

Summary of audits conducted were in the areas of:

1. TollandNonTollOperations

a. CompliancetoIdentifiedKeyInternalControl–TollProcedures(AllSections)

b. ManagementofPlusRondaOperations

c. ManagementofOperationalConsumableItems

d. ManagementofInsuranceandClaims

e. Managementof3rdPartyAdvertisement

2. ExpresswaysandAssetsMaintenance

a. ManagementofSecurityatPEBGroup’sPremises

b. ExpresswaysAssets–Pavement

3. Financial

a. BalanceSheetReview–AccountPayable,Cash&BankBalances

4. HumanResource

a. ManagementofStaffRecruitment,Compensation&Benefits

b. ManagementofHumanCapitalDevelopment

c. PayrollProcesses

5. InformationTechnology(“IT”)

a. PEBNetworkSecurity

6. OverseasSubsidiary

a. PLUSBKSPTollLimited

b. InduNavayugaInfraProjectPvt.Ltd

7. Strategies

a. CorporateBranding,Image&SocialResponsibilityActivities

b. PEB’sBusinessStrategies

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IADalsoworkswiththeGroupInternalAudit(“GIA”)ofUEMGroupBerhadinauditsthatrequirespecificskillsandknowledgenotavailablewithinIAD.In2010,ajointauditwasconductedwithGIAfortheareaofInformationTechnology(IT)aswellasBusinessStrategies.Movingforward,thecollaborationinITauditswillcontinueasthisservesasthefieldofskillslearningandknowledgesharingforIAD’sITauditors.Inaddition,IADalsoworkscloselywiththeExternalAuditorstoresolveanycontrolissuesraisedbythem.

Inordertoexamineandevaluatetheeffectivenessandefficiencyoftheinternalcontrolsystem,IADperformsanalysisontrafficvolumesandtollcollectionsusingComputerAidedAuditTools(“CAAT”)toidentifyanyanomaliesintolltransactionsasaguideforevaluatingtheoveralltolloperations.IADalsomaintainsandutilisestheInternalAuditInformationSystem(“IAIS”)whichisain-housedevelopeddatabasethatstorestheauditrelateddataandinformation.IAISallowsIADtomanageandupdatetheauditrelateddatainamoreeffectiveandefficientmanner.

TheHeadofIAD,MohdHalmiMohdHassan,holdsaBachelorofElectricalEngineeringDegreefromMemorialUniversityofNewfoundland,Canada.With14yearsofexperienceofoverseeingthetolloperationalaspects,revenueassuranceandinternalauditactivitiesinPLUSExpressways,theHeadofIADoffersawealthofexperienceinfocusingonachievingoperationalefficiencies,bytakingintoconsiderationtherisksinvolvedandwithoutcompromisingtheelementsofcontrols.

TheHeadofIADcurrentlysitsasanobserverintheManagementMeetingwheretheseniormanagementoftheGroupdiscussesanddeliberatesonissuespertainingtotheoperationsoftheGroup.Hewouldprovidehisinputandopiniononmattersdiscussedwithregardstointernalcontrol,wherenecessary.Asat31December2010,thetotalheadcountforIADstoodattwenty-eight(28)comprisingnineteen(19)executivesandnine(9)non-executives.ThetotalcostincurredbyIADfor2010wasRM2.04Million.

QualityAssessmentReview(“QAR”)isperformedbyqualifiedindependentrevieweronceeveryfiveyears.TheobjectiveofthereviewistoassessIAD’scompliancetotheInternationalStandardsfortheProfessionalPracticeofInternalAuditing(“Standards”).BasedonthelastestQARconductedin2008,IADhasconformedtotheStandardsingeneral.Inaddition,IADalsoperformsaninternalassessmentreviewannually.

REvIEW Of THE STATEMENT bY EXTERNAL AUdITORS

TheexternalauditorshavereviewedthisstatementonInternalControlfortheinclusionintheannualreportofPLUSExpresswaysBerhadfortheyearended31December2010andreportedtotheBoardthatnothinghascometotheirattentionthatwarrantsthemtobelievethatthestatementisinconsistentwiththeirunderstandingoftheprocessadoptedbytheBoardinreviewingtheadequacyandintegrityofthesystemofinternalcontrols.

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TheinformationsetoutbelowisdisclosedincompliancewiththeMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad(“BursaSecurities”).

MATERIAL cONTRAcTS

Otherthanthosedisclosedinthefinancialstatements,therewerenomaterialcontractsrelatingtoanyloansenteredintobytheCompanyanditssubsidiaryinvolvingDirectorsandmajorshareholders’interests.

REcURRENT RELATEd PARTY TRANSAcTIONS (“RRPT”) STATEMENT

TheCompanyhad,duringthelastAGMheldon29April2010obtainedageneralmandatefromitsshareholderstoenabletheGroupintheirordinarycourseofbusiness,toenterintorecurrenttransactionsofarevenueortradingnaturewithrelatedpartieswhicharenecessaryforitsday-to-dayoperations,ontermsnotmorefavourabletotherelatedpartyotherthanthosegenerallyavailabletothepublicandarenottothedetrimentoftheminorityshareholders(“RRPTMandate”).TheRRPTMandateisvaliduntiltheconclusionoftheforthcomingAGMoftheCompanytobeheldon29June2011.DetailsoftherecurrentrelatedpartytransactionsenteredintopursuanttotheRRPTMandatefortheyearended31December2010aresetoutinpage216ofthisAnnualReport.

IMPOSITION Of SANcTIONS ANd/OR PENALTIES

Therewerenosanctionsand/orpenaltiesimposedontheCompany,Directorsormanagementbytherelevantregulatoryauthorities.

SHARE bUY-bAckS

Therewasnosharebuy-backsduringthefinancialyearended31December2010.

OPTIONS, WARRANTS OR cONvERTIbLE SEcURITIES EXERcISEd

TheCompanyhasnotissuedanyoptions,warrantsorconvertiblesecuritiesinrespectofthefinancialyearended31December2010.

AMERIcAN dEPOSITORY REcEIPT (“AdR ”) OR GLObAL dEPOSITORY REcEIPT (“GdR ”)

TheCompanyhasnotsponsoredanyADRorGDRprogrammeforthefinancialyearended31December2010.

vARIATION IN RESULTS

TheCompanydidnotissueanyprofitforecastforthefinancialyearended31December2010.Assuch,nocommentaryismadeonvariationinresults.

PROfIT GUARANTEE

TheCompanydidnotissueanyprofitguaranteeforthefinancialyearended31December2010.

REvALUATION POLIcY

TheCompanyhasnotadoptedarevaluationpolicyonlandedproperties.

UTILISATION Of PROcEEdS

TherewasnocapitalraisingexercisecarriedoutbytheCompanyforthefinancialyearended31December2010.

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Name designation directorship

QuahPohKeat Chairman

IndependentNon-ExecutiveDirectorandamemberoftheMalaysianInstituteofCertifiedPublicAccountants(MICPA)andtheMalaysianInstituteofAccountants(MIA)

TanSriDatukK.Ravindran Member SeniorIndependentNon-ExecutiveDirector

DatukSeriPanglimaMohdAnnuarZaini

Member IndependentNon-ExecutiveDirector

2. cONSTITUTION

TheAuditCommitteeofPLUSExpresswaysBerhad(“PLUSExpressways”or“theCompany”)wasestablishedbytheBoardofDirectors(“Board”)on22May2002.

3. MEETINGS

Nine(9)meetings(inclusiveofone(1)SpecialAuditCommitteeMeeting)wereheldduringthefinancialyearended31December2010.AllmeetingswereheldatMenaraKorporat,PersadaPLUS,PersimpanganBertingkatSubang,KM15,LebuhrayaBaruLembahKlang,47301PetalingJaya,SelangorDarulEhsan.Thedatesandtimesofthemeetingswereasfollows:

date Time

13.01.10 10.00a.m.

22.02.10 6.30p.m.

12.04.10 2.30p.m.

19.05.10 9.00a.m.

18.08.10 9.30a.m.

20.09.10 9.30a.m.

08.11.10(SpecialAuditCommitteeMeeting)

4.00p.m.

23.11.10 2.30p.m.

23.12.10 2.30p.m.

SummaryofattendanceofthemembersattherespectiveAuditCommitteemeetingswereasfollows:

Name of Audit committee Member No. of Meetings Attended

QuahPohKeat 9/9

TanSriDatukK.Ravindran 8/9

DatukSeriPanglimaMohdAnnuarZaini 9/9

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SeniorManagementincludingtheManagingDirector,theChiefOperatingOffice,theSeniorGeneralManager,FinanceDivision,theHeadoftheInternalAuditDepartmentandtherepresentativesfromtheexternalauditorshadparticipatedindeliberationsonrelevantitemsattheAuditCommitteemeetingsconductedduringtheyearunderreviewattheinvitationoftheAuditCommittee.

4. cOMPOSITION ANd TERMS Of REfERENcE

4.1 composition of the Audit committee

TheAuditCommitteeshallbeappointedbytheBoardofDirectorsfromamongstitsnumbers,whichfulfilsthefollowingrequirements:

a. TheAuditCommitteemustcompriseofatleastthree(3)members;

b. AllmembersoftheAuditCommitteemustbeNon-ExecutiveDirectorsandamajorityofwhommustbeIndependentDirectors;

c. AllmembersoftheAuditCommitteemustbefinanciallyliterateandatleastonememberoftheCommitteemustbeamemberofanaccountingassociationorbody.

d. NoalternatedirectorshallbeappointedasamemberoftheAuditCommittee.

ThemembersoftheAuditCommitteeshallthenelectfromamongthemselvesanIndependentDirectortobetheChairman.AllmembersoftheAuditCommittee,includingtheChairman,willholdofficeonlysolongastheyserveasDirectorsofPLUSExpressways.

4.2 Secretaries of the Audit committee (committee Secretaries)

TheCompanySecretaryorCompanySecretaries(iftherearemorethan1)ofPLUSExpresswaysorhis/her/theirrepresentativeshallbetheSecretary(ies)oftheAuditCommittee.

4.3 Objectives of the Audit committee TheobjectiveoftheAuditCommittee

istoassisttheBoardindischargingitsresponsibilitiesbyreviewingtheadequacyandintegrityofPLUSExpresswaysgroup’s(“theGroup”)internalcontrolsystemsandmanagementofinformationsystems,includingsystemsforcompliancewithapplicablelaws,regulations,rules,directivesandguidelines.

TheAuditCommitteeshallreinforcetheindependenceoftheexternalauditors,assurethattheywillhavefreereinintheauditprocessandprovidealineofcommunicationbetweentheBoardandtheexternalauditors.

TheAuditCommitteeshallalsoenhancetheinternalauditfunctionbyincreasingtheobjectivityandindependenceoftheinternalauditorsandprovideaforumfordiscussionthatisindependentofthemanagement.ThequalityoftheauditsconductedbytheinternalandexternalauditorsoftheCompanyshallbereviewedbytheAuditCommittee.

Inaddition,theAuditCommitteewillensurehighstandardsofcorporatedisclosureandtransparency.TheAuditCommitteewillendeavourtoadoptcertainpracticesaimedatmaintainingappropriatestandardsofcorporateresponsibility,integrityandaccountabilitytoPLUSExpressways’shareholders.

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ThefollowingarethemaindutiesandresponsibilitiesoftheAuditCommittee:

4.4.1 OverseetheCompany’sinternalcontrolstructuretoassureoperationaleffectivenessandefficiency,reducetheriskofunreliablefinancialreporting,protecttheCompany’sassetsfrommisappropriationandencouragelegalandregulatorycompliance.

4.4.2 AssisttheBoardinidentifyingtheprincipalrisksinensuringtheCompany’sobjectivesandensuringtheimplementationofappropriatesystemstomanagetheserisks.

4.4.3 Recommendto theBoardtheappointmentandannualre-appointmentof theexternalauditorsandtheiraudit fee,after taking intoconsiderationthe independenceandobjectivityof theexternalauditorsandthecosteffectivenessof theiraudit.

4.4.4 Reviewwiththeexternalauditorbeforetheauditcommencesthenatureandscopeoftheaudit,theauditplanandensureco-ordinationwheremorethanoneauditfirmisinvolved.

4.4.5 Reviewwithexternalauditors,theirauditreport.

4.4.6 Reviewthequarterlyinterimresults,half-yearandannualfinancialstatementsoftheGrouppriortoapprovalbytheBoardwhilstensuringthattheyarepreparedinatimelyandaccuratemannercomplyingwithallaccountingandregulatoryrequirementsandarepromptlypublished.

4.4.7 Discussproblemsandreservationsarisingfromtheinterimandfinalauditsandanymattertheexternalauditormaywishtodiscussintheabsenceofthemanagementwherenecessary.

4.4.8 Reviewtheexternalauditor’smanagementlettersandmanagement’sresponse.

4.4.9 Reviewtheassistanceandco-operationgivenbyPLUSExpresswaysanditsgroup’sofficerstotheexternalandinternalauditors.

4.4.10Reviewtheadequacyofthescope,functionsandresourcesoftheInternalAuditfunctionandthatithasappropriatestandingwithintheGrouptoundertakeitsactivitiesindependentlyandobjectively,includingbutnotlimitedtothefollowing:

• ReviewingandapprovingtheAnnualInternalAuditPlanandensuringadequateriskandgovernancecoverage.

• Reviewingtheresultsoftheinternalauditprocessandwherenecessaryensuringappropriateactionsaretakenontherecommendationsoftheinternalauditors.

• ReviewingtheoverallperformanceoftheInternalAuditfunctions.

• ApprovinganyappointmentorterminationofseniorstaffmembersoftheInternalAuditfunction.

• Takingcognisanceofresignationofinternalauditstaffmembersandprovidingtheresigningmemberanopportunitytosubmithis/herreasonsforresigning.

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4.4.11AppraisetheperformanceoftheHeadofInternalAuditandtoreviewtheappraisalsofseniorstaffmembersoftheinternalauditfunctions.

4.4.12ApproveanyappointmentorterminationoftheHeadofInternalAuditandseniorstaffmembersoftheinternalauditfunctionandtoreviewanyresignationsofinternalauditstaffmembersandprovideresigningstaffmembersanopportunitytosubmitreasonsforresigning,wherenecessary.

4.4.13ReviewanyrelatedpartytransactionsandconflictofinterestsituationthatmayarisewithintheGroup,includinganytransaction,procedureorcourseofconductthatraisesquestionsonmanagementintegrity.

4.4.14Considerthemajorfindingsofinternalinvestigationsandmanagement’sresponses.

4.4.15ConsideranyotherissuesasdefinedbytheBoard.

4.5 Powers of the Audit committee

Incarryingoutitsdutiesandresponsibilities,theAuditCommitteeshallhavethefollowingauthority:

a. Explicitauthoritytoinvestigateanymatterwithinitstermsofreference;

b. Theresourcesrequiredtoperformitsduties;

c. Fullandunrestrictedaccesstoanyinformation,records,propertiesandpersonnelofthePLUSExpresswaysandanyofothercompanieswithinthePLUSExpressways’group;

d. Directcommunicationchannelswiththeexternalauditorsandperson(s)carryingouttheinternalauditfunctionsoractivity(ifany);

e. BeabletoobtainindependentprofessionalorotheradviceandtoinviteoutsiderswithrelevantexperienceandexpertisetoattendtheAuditCommittee’smeeting(ifrequired)andtobrieftheAuditCommittee;

f. TheattendanceofanyparticularAuditCommitteemeetingbyotherdirectorsandemployeesofPLUSExpresswaysshallbeatAuditCommittee’sinvitationanddiscretionandmustbeforthespecificagendarelevanttotherelevantAuditCommitteemeeting;

g. Beabletoconvenemeetingswithexternalauditorswithoutthepresenceoftheexecutiveboardmembersandmanagementwheneverdeemednecessary;and

h. WheretheAuditCommitteeisoftheviewthatamatterreportedbyittotheBoardhasnotbeensatisfactorilyresolvedresultinginabreachofMainMarketListingRequirements,theAuditCommitteemustpromptlyreportsuchmattertoBursaMalaysiaSecuritiesBerhad.

4.6 Audit committee Meetings

a. TheAuditCommitteeshallholdaminimumoffour(4)meetingsinafinancialyear.ThenumberofAuditCommitteemeetingsheldinafinancialyearandthedetailsofattendanceofeachindividualmemberinrespectofmeetingsheldshallbedisclosedannually.

b. TheAuditCommitteemeetingsshallbechairedbytheChairmanoftheAuditCommitteeorintheabsenceoftheChairman,anothercommitteememberwhoisanIndependentDirectornominatedbythecommitteemembers.ThequorumforthemeetingoftheAuditCommitteeshallbetwo(2)members,bothofwhommustbeIndependentDirectors.

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c. TheChairmanalsohasthediscretiontocallforadditionalmeetingsatanytime,ashedeemsnecessary.

d. TheCommitteeSecretariesortheirrepresentativesshallattendeachAuditCommitteemeetingandrecordtheproceedingsofthemeetings.

e. MinutesofeachmeetingshallbekeptaspartofthestatutoryrecordofPLUSExpresswaysuponadoptionbytheAuditCommittee.

f. AresolutioninwritingsignedandapprovedbyalltheAuditCommitteememberswhomayatthetimebepresentinMalaysiaandwhoaresufficienttoformaquorum,shallbevalidandeffectualasifithadbeenpassedatameetingoftheAuditCommitteedulycalledandconstituted.AllsuchresolutionshallbeforwardedorotherwisedeliveredtotheSecretariesoftheAuditCommitteewithoutdelayandshallberecordedbyhim/herintheCompany’sMinutesBook.AnysuchresolutionmayconsistofseveraldocumentsinlikeformeachsignedbyoneormoreAuditCommitteemembers.

g. AmeetingoftheAuditCommitteemaybeheldbymeansoftelephone,videoconferenceortelephoneconferenceorothertelecommunicationfacilities,whichpermitsallpersonsparticipatinginthemeetingtocommunicatewitheachother.Apersonsoparticipatingshallbedeemedtobepresentinpersonatsuchmeetingandshallbecountedinaquorumandbeentitledtovote.

h. TheManagingDirectorand/ortheChiefExecutiveOfficerand/orotherappropriateofficermaybeinvitedtoattendwheretheirpresenceareconsideredappropriatebytheAuditCommitteeChairman.

i. TheinternalandexternalauditorshavetherighttoappearandbeheardatanymeetingoftheAuditCommittee.TheinternalauditorsareexpectedtoattendeachAuditCommitteemeeting.

j. Upontherequestoftheauditor(s),theAuditCommitteeChairmanshallalsoconveneameetingoftheAuditCommitteetoconsideranymattertheauditor(s)believesshouldbebroughttotheattentionoftheBoardortheshareholders.

k. TheAuditCommitteeshallmeetwithexternalauditorswithoutthepresenceoftheexecutivedirector(s)andmanagementatleasttwiceayearandwheneverdeemednecessary.

4.7 Audit committee Report

TheBoardisrequiredtoprepareanAuditCommitteeReportattheendofeachfinancialyeartobeincludedandpublishedintheannualreportoftheCompany.Thesaidreportshallincludethefollowing:

a. ThecompositionoftheAuditCommitteeincludingthename,designation(indicatingtheChairman)anddirectorshipofthemembers(whethertheDirectorsareindependentorotherwise)anddetailsoftherelevanttrainingattendedbyeachDirector.

b. ThetermsofreferenceoftheAuditCommittee.

c. ThenumberofAuditCommitteemeetingsheldduringthefinancialyearanddetailsofattendanceofeachAuditCommitteemember.

d. AsummaryoftheactivitiescarriedoutbytheAuditCommitteeinthedischargeofitsfunctionsanddutiesforthatfinancialyearoftheCompany.

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e. AsummaryoftheactivitiesoftheInternalAuditfunction.

f. TheidentityoftheHeadoftheInternalAuditfunctionwhoreportsdirectlytotheAuditCommittee.

4.8 chairman of the Audit committee

ThefollowingarethemaindutiesandresponsibilitiesoftheAuditCommitteeChairman:

a. HelpstheAuditCommitteefulfilsitsgoalsbyassigningspecifictaskstomembersoftheAuditCommittee,identifiesguidelinesfortheconductofthemembersandensuresthateachmemberismakingasignificantcontribution.

b. Looksto theCompanySecretary(ies)forguidanceonwhat theirresponsibilitiesareunder therulesandregulationstowhichtheyaresubject toandhowthoseresponsibilitiesshouldbedischarged.Thecomplianceadviceshouldextendtoembraceall lawsandregulationsandnotmerely theroutine filingrequirementsandotheradministrativerequirementsof theCompaniesAct.

c. Providesareasonabletimefordiscussionatthemeeting.Organisesandpresentstheagendaforregularorspecialcommitteemeetingsbasedoninputfrommembersandensuresthatallrelevantissuesareontheagenda.Inaddition,theChairmanshouldencouragedebateontheissuesbeforethecommittee.

d. ProvidesleadershiptotheAuditCommitteeandensureproperflowofinformationtotheAuditCommittee,reviewingtheadequacyandtimingofdocumentation.

e. Securesgoodcorporategovernanceandensuresthatmemberslookbeyondtheircommitteefunctionsandaccepttheirfullshareofresponsibilitiesinreviewingmanagement’sproposals.

f. ManagestheprocessesandworkingoftheAuditCommitteeandensuresthattheAuditCommitteedischargesitsresponsibilitiesinaccordancewithitsTermsofReference.AppropriateproceduresmaybeinvolvedintheAuditCommitteemeetingwithoutthepresenceofmanagement.

g. EnsuresthateveryAuditCommitteeresolutionisputtovotetoensurethatthewillofthemajorityprevails.

h. Engagesonacontinuousbasiswithseniormanagement,suchastheChairman,ManagingDirector,theHeadofInternalAuditandtheexternalauditorsinordertobekeptinformedofmattersaffectingtheCompany.

4.9 Audit committee Members

EachAuditCommitteememberisexpectedto:

a. Provideindependentopinionstothefact-finding,analysisanddecisionmakingprocessoftheAuditCommittee,basedonhis/herexperienceandknowledge.

b. Considerviewpointsfromtheothercommitteemembers;makedecisionsandrecommendationforthebestinterestsoftheBoardcollectively.

c. Keepabreastofthelatestcorporategovernanceguidelinesandbestpractices inrelationtothefunctionsoftheAuditCommitteeandtheBoardasawhole.

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5. INTERNAL AUdIT fUNcTIONS

TheInternalAuditDepartment(“IAD”)oftheGroupsupportstheAuditCommittee indischarging itsdutiesandresponsibilities,givingassurancethatadequate,efficientandeffective internalcontrolssystemare inplace.Theprincipalroleof IADistoundertakeanindependent,regularandsystematicreviewofthesystemof internalcontrolssoastoprovidereasonableassurancethatsuchasystemcontinuestooperatesatisfactorilyandeffectively.

It istheresponsibilityoftheIADtoprovidetheAuditCommitteewith independentandobjectivereportsonthestateofthe internalcontrolsofthevariousoperatingdivisionswithintheGroup,andtheextentofcomplianceofthedivisionswiththeGroup’sestablishedpoliciesandproceduresaswellasrelevantstatutoryrequirements.TheIADiscurrentlyheadedbyMohdHalmiMohdHassan.

FurtherdetailsoftheactivitiesoftheIADaresetoutinStatementonInternalControlonpages64to68.

6. EXTERNAL AUdITORS

TheAuditCommitteecontinuestomonitortheperformanceoftheexternalauditorstoensurethattheexternalauditorsareindependent,objectiveandeffectiveincarryingouttheirduties.

7. AcTIvITIES

InlinewiththetermsofreferenceoftheAuditCommittee,thefollowingswereamongsttheactivitiescarriedoutbytheAuditCommitteeduringthefinancialyearended31December2010,indischargingitsfunctions:

1. Reviewedwiththeexternalauditorstheresultsoftheannualfinancialaudit,theauditedfinancialstatementsandthemanagementletters.

2. Reviewedthequarterlyunaudited financialresultandrelatedannouncementsandrecommendedtheseto theBoard forconsiderationandapproval.Thereview is toensurecompliancewith therequirementsof theBursaMalaysiaSecuritiesBerhad’s,applicableaccountingstandardsandotherrelevant legalandregulatoryrequirements.

3. Reviewedthescopeofworkandtheauditplansoftheexternalandinternalauditors.

4. ReviewedtheinternalauditreportspresentedbyInternalAuditDepartmentanddiscussedthecorrectiveactionstakenbymanagementtoimprovethesystemofinternalcontrolandanyoutstandingmatters.

5. ReviewedtheprogressofPLUSExpressways’2010riskregisterandrecommendedfortheBoardofDirectorsbeupdatedofthesame.

6. ReviewedtherelatedpartytransactionsandrecommendedtotheBoardforconsiderationandapproval.

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7. Mettwicewiththeexternalauditorsduringtheyear,withoutthepresenceofthemanagement.

8. RecommendsfortheBoard’sconsiderationthere-appointmentofexternalauditorsandtheauditfee.

9. Deliberatedontheproposedacquisitionof20%equityinterestinTouch‘nGoSdnBhdbyPLUSExpressways(“ProposedAcquisition”)andrecommendedtotheBoardtoapprovetheProposedAcquisition.

10. Deliberatedontheproposedacquisitionof100%equity interest inTerasTeknologiSdnBhdbyPLUSExpresswaysandrecommendedtotheBoardtoapprovethesaidproposal.

11. DeliberatedontheoffermadebyUEMGroupBerhadandEmployeesProvidentFundBoard(“EPF”)(“JointOfferors”)toacquireallofthebusinessandundertaking,includingallassetsandliabilities,ofPLUSExpresswaysBerhad(“Offer”)foraconsiderationofRM23billionandrecommendedtotheBoardofDirectorsofPLUSExpresswaystoacceptthesaidOffer(subjecttoallconditionsbeingfulfilledbytheofferors).

12. DeliberatedontheoffermadefromJelasUlungSdnBhdtoacquireallofthebusinessandundertaking,includingallassetsandliabilitiesofPLUSExpresswaysBerhadforatotalpurchaseconsiderationofRM26billionandsetrequirementstoanypotentialofferorsandextensionoftheoffertimeline.

13. ReviewedthecirculartoshareholdersinrelationtotheProposedDisposaloftheentirebusinessandundertaking,includingallassetsandliabilitiesofPLUSExpresswaystotheJointOfferorsforatotalconsiderationofRM23billion(“ProposedDisposal”)andProposedDistributionofthecashproceedsarisingfromtheProposedDisposaltoallentitledshareholdersofPLUSExpresswaysviaaselectivecapitalrepaymentandspecialdividend(“ProposedDistribution”).

TheAuditCommitteemeetingswereappropriatelystructuredthroughtheuseofagendasofmeetingandAuditCommitteePapers,whichweredistributedtoAuditCommitteememberswithsufficientnotification.

Directors’ Report 79Statement byDirectors 86StatutoryDeclaration 87Independent Auditors’ Report 88IncomeStatements 90Statements of Comprehensive Income 91Statements of Financial Position 92Statements of Changes in Equity 94Statements of Cash Flows 96Notes to the Financial Statements 98

fINANCIALSTATEMENTS

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TheDirectorspresenttheirannualreporttogetherwiththeauditedfinancialstatementsoftheGroupandoftheCompanyfortheyearended31December2010.

PRINcIPAL AcTIvITIES

TheprincipalactivitiesofthePLUSExpresswaysBerhad(“theCompany”or“PEB”)areinvestmentholdingandprovisionofexpresswayoperationservices.Theprincipalactivitiesofthesubsidiariesandassociatesareinvestmentholding,highwayconcessionairesandrelatedservices.

TheMalaysiansubsidiariesandassociateoftheCompanyareasfollows:

(i) Projek LebuhrayaUtara-SelatanBerhad (“PLUS”); PLUS is involved in the construction, operation,maintenance and toll collection of the North-South Expressway (“NSE”), the New Klang ValleyExpressway(“NKVE”),asectionofFederalHighwayRoute2(“FHR2”)betweenSubangandKlang,andtheSeremban-PortDicksonHighway(“SPDH”).

(ii) Expressway Lingkaran Tengah SdnBhd (“ELITE”); ELITE is involved in the construction, operation,maintenance and toll collection of the North-South Expressway Central Link (“NSECL”) and anextensionoftheKLIAExpressway(“KLIAExpressway”).

(iii) Linkedua (Malaysia) Berhad (“LINKEDUA”); LINKEDUA is involved in the construction, operation,maintenanceandtollcollectionoftheMalaysia-SingaporeSecondCrossing(“MSSC”).

(iv) Konsortium Lebuhraya Butterworth-Kulim (KLBK) Sdn Bhd (“KLBK”); KLBK is involved in theconstruction, operation,maintenance and toll collection of the Butterworth-Kulim Expressway(“BKE”).

(v) PLUS Helicopter Services Sdn Bhd (“PHS”); PHS is a dedicated aviation company that provideshelicoptercharterservices,includingaerialsurveillanceofexpressways.

(vi) Touch‘nGoSdnBhd(“TnG”);TnGisacompanyprimarily involvedinprovidingcontactlessmeansoffarepaymentservicesviaapre-paide-paymentcardknownasTouch‘nGo.PEBacquired20%equityinterestinTnGon11June2010.

(vii) TerasTeknologiSdnBhd(“TERAS”)anditssubsidiaries;TERAS,whichwasacquiredon15June2010,isacompanyprincipally involved in investmentholdingand theprovisionof information technology,outsourcing,e-commerceservicesandinternetrelatedservices.

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PEB’sinternationalsubsidiariesandassociateareasfollows:

(i) Theprincipalactivitiesofallof theCompany’ssubsidiaries inMauritiusare investmentholdinganddetailsareasfollows:

a) PLUSKalyan(Mauritius)PrivateLimited(“PLUSKalyan”).

b) PLUSPlaza(Mauritius)PrivateLimited(“PLUSPlaza”).

c) PLUSJetpur(Mauritius)PrivateLimited(“PLUSJetpur”).

(ii) PEB’sforeigninvestmentsinIndiaare:

a) PLUSBKSPTollLimited (“PLUSBKSP”),a94%-ownedsubsidiaryof theCompany,helddirectlyand indirectly through PLUS Kalyan. PLUS BKSP is principally involved in the construction,operation,maintenance and toll collection of the 22-kilometre Bhiwandi-Kalyan-Shil PhataHighway(“BKSPHighway”)intheStateofMaharashtra,India.

b) InduNavayuga Infra Project Private Limited (“INIPPL”), a 49%-owned company held indirectlythroughPLUSPlaza. INIPPL is principally involved in the construction, operation,maintenanceandtollcollectionofthePadalurtoTrichysectionfromKm285toKm325ofNH-45intheStateofTamilNadu,India.

c) Jetpur-SomnathHighwayLimited(“JSHL”),a26%-ownedcompanyheld indirectlythroughPLUSJetpur. JSHL is principally involved in the design, engineering, procurement, construction,maintenance,operationsand toll collectionofKm0 toKm127.6onJetpur-SomnathsectionofNH-8DintheStateofGujarat,India.

(iii) PEB’sforeigninvestmentsinIndonesiaare:

a) PT Lintas Marga Sedaya (“LMS”), a 55%-owned subsidiary of PEB which undertakes thedesign,construction,operation,maintenanceandtollcollectionofthe116-kilometreCikampek-PalimananHighwayinIndonesia.

b) PT Cimanggis-Cibitung Tollways (“CCTW”), a 60%-owned subsidiary of PEBwhich is involvedin the construction, operationandmaintenanceof theproposed25.4kmPackage4-Cimanggis-CibitungTollRoadinIndonesia.

Therehavebeennosignificantchanges in thenatureof theprincipalactivitiesduring thefinancial yearexcept for the principal activity of TERAS asmentioned inNote 19 to the financial statements. FurtherdetailsofthesubsidiariesandassociatesareinNotes19and20respectively.

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fINANcIAL RESULTS

Group RM’000

Company RM’000

Profitbeforetax 1,776,965 388,046

Incometaxexpense (476,181) 8,700

Profitfortheyear 1,300,784 396,746

Attributable to:

Ownersoftheparent 1,306,170 396,746

Minorityinterests (5,386) –

1,300,784 396,746

Therewerenomaterialtransferstoorfromreservesorprovisionsduringthefinancialyearotherthanasdisclosedinthefinancialstatements.

IntheopinionoftheDirectors,theresultsoftheoperationsoftheGroupandoftheCompanyduringthefinancial year have not been substantially affected by any item, transaction or event of amaterial andunusualnature,otherthanasdisclosedinthenotestothefinancialstatements.

dIvIdENdS

TheamountofdividendspaidbytheCompanysince31December2009wereasfollows:

2010RM’000

Finalsingletierdividendfortheyearended31December2009of10.0senperordinarysharedeclaredon29April2010andpaidon18May2010 500,000

Interimsingletierdividendfortheyearended31December2010of7.5senperordinarysharedeclaredon19August2010andpaidon24September2010 375,000

875,000

No further dividendwill be proposed for shareholders’ approval in respect of the financial year ended31December2010.

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dIREcTORS

Thenamesof theDirectorsof theCompany inofficesince thedateof the last reportandat thedateofthisreportare:

TanSriDato’MohdSheriffbinMohdKassimDato’MohdIzzaddinbinIdrisDato’NoorizahbintiHjAbdHamidHassanbinJa’afarDatukMohamedAzmanbinYahyaTanSriDatukK.Ravindrans/oC.KuttyKrishnanQuahPohKeatDatukSeriPanglimaMohdAnnuarbinZainiDato’SeriIsmailbinShahudin

InaccordancewithArticle76of theCompany’sArticlesofAssociation,MrQuahPohKeat,TanSriDatukK. Ravindran s/o C. Kutty Krishnan andDatuk Seri PanglimaMohdAnnuar bin Zaini shall retire at theforthcomingAnnualGeneralMeetingandbeingeligible,offerthemselvesforre-election.

In accordancewith Section 129(2) of the Companies Act, 1965, Tan Sri Dato’Mohd Sheriff binMohdKassimhavingalreadyattainedtheageof70,shallvacatetheofficeofDirectoroftheCompany.However,pursuant to Section 129(6), hemay be re-appointed by resolution passed by amajority of not less thanthree-fourthofsuchnumberofshareholdersoftheCompanyentitledtovoteatageneralmeetingoftheCompany.TheappointmenttoholdofficeshallbeuntilthenextAnnualGeneralMeetingoftheCompany.Theresolutiontore-appointhimasDirectoroftheCompanywillbeproposedattheforthcomingAnnualGeneralMeeting.

dIREcTORS’ bENEfITS

Neitherattheendofthefinancialyear,noratanytimeduringtheyear,didtheresubsistanyarrangementtowhichtheCompanywasaparty,wherebytheDirectorsmightacquirebenefitsbymeansofacquisitionofsharesin,ordebenturesoftheCompanyoranyotherbodycorporate.

Since the endof the previousfinancial year, noDirector has received or becomeentitled to receive anybenefits (other than benefits included in the aggregate amount of emoluments received or due andreceivablebytheDirectorsorthefixedsalaryofafull-timeemployeeoftheCompanyasdisclosedinNote10tothefinancialstatements)byreasonofacontractmadebytheCompanyorarelatedcorporationwithanyDirectororwithafirmofwhichtheDirectorisamemberorwithacompanyinwhichtheDirectorhasasubstantialfinancialinterest,requiredtobedisclosedbySection169(8)oftheCompaniesAct,1965.

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dIREcTORS’ INTERESTS

AccordingtotheregisterofDirectors’shareholdingstobekeptunderSection134oftheCompaniesAct,1965, the interestofDirectors inofficeat theendof thefinancialyear inshares in theCompanyand itsrelatedcorporationduringthefinancialyearwereasfollows:

The company

Number of Ordinary Shares of RM0.25 each

As at During the year As at

1.1.2010 Bought Sold 31.12.2010

Direct Interest

TanSriDato’MohdSheriffbinMohdKassim 55,000 – – 55,000

Dato’NoorizahbintiHjAbdHamid 20,000 – – 20,000

HassanbinJa’afar 40,000 – – 40,000

DatukMohamedAzmanbinYahya 40,000 – – 40,000

TanSriDatukK.Ravindran 40,000 – – 40,000

DatukSeriPanglimaMohdAnnuarbinZaini 15,000 – – 15,000

UEM Land Holdings berhad



1.1.2010 Bought Sold 31.12.2010

Direct Interest

TanSriDato'MohdSheriffbinMohdKassim 114,000 – 79,000 35,000

Dato'SeriIsmailbinShahudin 4,688 2,344 – 7,032

Pharmaniaga berhad



1.1.2010 Bought Sold 31.12.2010

Direct Interest

Dato'NoorizahbintiHjAbdHamid 100 – – 100

None of the otherDirectorswho held office at the end of the financial year had an interest directly orindirectlyinsharesoftheCompanyanditsrelatedcorporationsduringthefinancialyear.

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HOLdING cOMPANY

TheDirectorsregardUEMGroupBerhad(“UEM”),acompanyincorporatedinMalaysiawhichowns38.51%oftheCompany’sequityasat31December2010,astheimmediateholdingcompany.

OTHER STATUTORY INfORMATION

(a) BeforethefinancialstatementsoftheGroupandoftheCompanyweremadeout,theDirectorstookreasonablesteps:

(i) toascertainthatproperactionhadbeentakeninrelationtothewritingoffofbaddebtsandthemakingofallowance fordoubtfuldebtsandsatisfied themselves that therewerenoknownbaddebtsandthatadequateallowancehadbeenmadefordoubtfuldebts;and

(ii) to ensure that any current assetswhichwere unlikely to realise their value as shown in theaccountingrecordsintheordinarycourseofbusinesshadbeenwrittendowntoanamountwhichtheymightbeexpectedsotorealise.

(b) Atthedateofthisreport,theDirectorsarenotawareofanycircumstanceswhichwouldrender:

(i) itnecessarytowriteoffanydebtsortheamountofallowancefordoubtfuldebtsintheGroupandoftheCompanyinadequatetoanysubstantialextent;and

(ii) the values attributed to current assets in the financial statements of the Group and of theCompanymisleading.

(c) Atthedateofthisreport,theDirectorsarenotawareofanycircumstanceswhichhavearisenwhichwouldrenderadherencetotheexistingmethodofvaluationofassetsandliabilitiesoftheGroupandoftheCompanymisleadingorinappropriate.

(d) Atthedateofthisreport,theDirectorsarenotawareofanycircumstancesnototherwisedealtwithin this reportor thefinancialstatementsof theGroupandof theCompanywhichwouldrenderanyamountstatedinthefinancialstatementsmisleading.

(e) Asatthedateofthisreport,theredoesnotexist:

(i) anychargeontheassetsoftheGroupandoftheCompanywhichhasarisensincetheendofthefinancialyearwhichsecurestheliabilitiesofanyotherperson;or

(ii) any contingent liability in respect of theGroupandof theCompanywhichhasarisensince theendofthefinancialyear.

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OTHER STATUTORY INfORMATION (cONTINUEd)

(f) IntheopinionoftheDirectors:

(i) nocontingentliabilityorotherliabilityhasbecomeenforceableorislikelytobecomeenforceablewithintheperiodoftwelvemonthsaftertheendofthefinancialyearwhichwillormayaffecttheabilityoftheGroupandoftheCompanytomeetitsobligationswhentheyfalldue;and

(ii) noitem,transactionoreventofamaterialandunusualnaturehasarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportwhichislikelytoaffectsubstantiallytheresultsoftheGroupandoftheCompanyforthefinancialyearinwhichthisreportismade.

SIGNIfIcANT EvENTS ANd EvENT OccURRING AfTER REPORTING dATE

Significant events and event occurring after reporting date are disclosed in Note 47 to the financialstatements.

AUdITORS

Theauditors,Ernst&Young,haveexpressedtheirwillingnesstoacceptreappointment.

SignedonbehalfoftheBoardinaccordancewitharesolutionoftheDirectors,

TAN SRI DATO’ MOhD ShERIff BIN MOhD KASSIM DATO’ NOORIzAh BINTI hJ ABD hAMID

Selangor,Malaysia25February2011

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We,TANSRIDATO’MOHDSHERIFFBINMOHDKASSIMandDATO’NOORIZAHBINTIHJABDHAMID,beingtwooftheDirectorsofPLUSEXPRESSWAYSBERHAD,doherebystatethatintheopinionoftheDirectors,theaccompanyingfinancial statementssetoutonpages90 to214aredrawnup inaccordancewith theprovisionsoftheCompaniesAct,1965andapplicableFinancialReportingStandardsinMalaysiasoastogive a true and fair view of the financial position of theGroup and of theCompany as at 31December2010andoftheirfinancialperformanceandthecashflowsoftheGroupandoftheCompanyfortheyearthenended.

TheinformationsetoutinNote50ofthefinancialstatementshavebeenpresentedinaccordancewiththedirective issued byBursaMalaysia SecuritiesBerhad dated 25March 2010 and prepared in accordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLossesintheContextofDisclosurePursuant toBursaMalaysiaSecuritiesBerhadListingRequirements,as issuedbytheMalaysianInstituteofAccountants.

SignedonbehalfoftheBoardinaccordancewitharesolutionoftheDirectors,

TAN SRI DATO’ MOhD ShERIff BIN MOhD KASSIM DATO’ NOORIzAh BINTI hJ ABD hAMID

Selangor,Malaysia25February2011

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NIESAC

T,1965I, HOW SEETMENG, being the Officer primarily responsible for the financialmanagement of PLUS

EXPRESSWAYSBERHAD,dosolemnlyandsincerelydeclarethatthefinancialstatementssetoutonpages90to215areinmyopinioncorrect,andImakethissolemndeclarationconscientiouslybelievingthesametobetrue,andbyvirtueoftheprovisionsoftheStatutoryDeclarationsAct,1960.

SubscribedandsolemnlydeclaredbytheabovenamedHOWSEETMENGinSelangor,Malaysiaon25February2011

Beforeme, hOW SEET MENG

M.KhANDIMADDICommissionerforOaths(No.B106)

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Report on the financial statements

WehaveauditedthefinancialstatementsofPLUSEXPRESSWAYSBERHAD,whichcomprisethestatementsoffinancialpositionasat31December2010oftheGroupandoftheCompany,andtheincomestatements,statementsofcomprehensiveincome,statementsofchangesinequityandstatementsofcashflowsoftheGroupandoftheCompanyfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages90to214.

directors' responsibility for the financial statements

Directors are responsible for the preparation and fair presentation of these financial statements inaccordancewithapplicableFinancialReportingStandardsandtheCompaniesAct,1965inMalaysia.Thisresponsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevanttothepreparationand fair presentation of financial statements that are free frommaterialmisstatement,whether due tofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditors’ responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithapprovedstandardsonauditinginMalaysia.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthefinancialstatements.Theproceduresselecteddependonourjudgement,includingtheassessmentofrisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,weconsiderinternalcontrolrelevanttotheCompany’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessof accounting estimatesmade by the directors, as well as evaluating the overall presentation of thefinancialstatements.

We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis forourauditopinion.

Opinion

In our opinion, the financial statements have been properly drawn up in accordance with applicableFinancialReportingStandardsandtheCompaniesAct,1965inMalaysiasoastogiveatrueandfairviewof thefinancialpositionof theGroupandof theCompanyasat31December2010andof theirfinancialperformanceandcashflowsoftheGroupandoftheCompanyfortheyearthenended.

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Report on other legal and regulatory requirements

Inaccordancewith the requirementsof theCompaniesAct, 1965 inMalaysia (“theAct”),wealso reportthefollowing:

(a) Inouropinion,theaccountingandotherrecordsandtheregistersrequiredbytheActtobekeptbytheCompanyanditssubsidiarieshavebeenproperlykeptinaccordancewiththeprovisionsoftheAct.

(b) Wehaveconsidered theaccountsand theauditors’ reportsof all thesubsidiariesofwhichwehavenotactedasauditors,whichareindicatedinNote19tothefinancialstatements.

(c) Wearesatisfiedthat theaccountsof thesubsidiaries thathavebeenconsolidatedwith thefinancialstatementsof theCompanyare in formandcontentappropriateandproper for thepurposesof thepreparation of the consolidated financial statements andwe have received satisfactory informationandexplanationsrequiredbyusforthosepurposes.

(d) Theauditors’reportsontheaccountsof thesubsidiarieswerenotsubjecttoanyqualificationtotheconsolidatedfinancialstatementsanddidnotincludeanycommentrequiredtobemadeunderSection174(3)oftheAct.

Other matters

The supplementary information set out inNote 50onpage215 is disclosed tomeet the requirement ofBursaMalaysiaSecuritiesBerhad.TheDirectorsareresponsibleforthepreparationofthesupplementaryinformationinaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfits or Losses in the Context of Disclosure Pursuant to BursaMalaysia Securities Berhad ListingRequirements, as issued by theMalaysian Institute of Accountants (“MIA Guidance”) and the directiveof BursaMalaysia SecuritiesBerhad. In our opinion, the supplementary information is prepared, in allmaterial respects, in accordancewith theMIAGuidance and the directive of BursaMalaysia SecuritiesBerhad.

Thisreport ismadesolelytothemembersoftheCompany,asabody, inaccordancewithSection174oftheCompaniesAct, 1965 inMalaysia and for no other purpose.Wedonot assume responsibility to anyotherpersonforthecontentofthisreport.

Ernst&Young AHMADZAHIRUDINBINABDULRAHIMAF:0039 No.2607/12/12(J)CharteredAccountants CharteredAccountant

KualaLumpur,Malaysia25February2011

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Group Company

Note 2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Continuing operations

Revenue 5 3,351,481 3,179,022 594,106 930,607

Directcostofoperations (990,905) (914,935) (101,135) (91,148)

Gross profit 2,360,576 2,264,087 492,971 839,459

Otherincome 6 244,058 134,733 9,971 6,619

Generalandadministrationexpenses (74,729) (73,196) (18,970) (17,807)

Otherexpenses (4,102) (1,864) (3,884) (1,697)

Financecosts 7 (751,297) (700,188) (92,042) (81,237)

Shareofresultsfromassociate 2,459 – – –

Profit before tax 8 1,776,965 1,623,572 388,046 745,337

Incometaxexpense 12 (476,181) (438,460) 8,700 (2,568)

Profit for the year 1,300,784 1,185,112 396,746 742,769

Attributable to:

Ownersoftheparent 1,306,170 1,186,378 396,746 742,769

Minorityinterests (5,386) (1,266) – –

1,300,784 1,185,112 396,746 742,769

Earnings per share attributable to owners of the parent (sen) 13 26.12 23.73 7.93 14.86

Interim single tier dividend per ordinary share in respect of the year (sen) 14 7.50 6.50

final single tier dividend per ordinary share in respect of the year (sen) 14 – 10.00

INCO

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ENDED

31DEC

EMBER

2010

Theaccompanyingnotesformanintegralpartofthefinancialstatements.

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EMBER

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Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Profit for the year 1,300,784 1,185,112 396,746 742,769

Foreigncurrencytranslation (18,305) 15,570 – –

Other comprehensive income for the year, net of tax (18,305) 15,570 – –

Total comprehensive income for the year 1,282,479 1,200,682 396,746 742,769

Attributable to:

Ownersoftheparent 1,291,003 1,199,026 396,746 742,769

Minorityinterests (8,524) 1,656 – –

1,282,479 1,200,682 396,746 742,769

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Group Company Note 2010 2009 1.1.2009 2010 2009 1.1.2009

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Restated Restated Restated Restated

ASSETS

Non-current assets

Concessionassets 15 12,612,505 12,417,516 12,380,531 – – –

Property,plantandequipment 16 81,631 76,134 75,124 114,577 112,915 112,317

Intangibleassets 18 4,212 3,729 3,667 2,962 2,668 1,632

Investmentsinsubsidiaries 19 – – – 2,204,822 2,300,001 2,284,361

Investmentsinassociates 20 35,884 – – 33,407 – –

Investmentsecurities 22 145,489 159,192 165,925 – – –

Deferredtaxassets 23 3,023 8,316 7,154 1,186 7,890 4,898

TollcompensationrecoverablefromtheGovernment 24 2,460,346 2,486,189 1,909,498 – – –

Amountowingbysubsidiary 26 – – – 43,716 65,378 85,378

Longtermdeposits 28 20,946 501 483 20,480 – –

15,364,036 15,151,577 14,542,382 2,421,150 2,488,852 2,488,586

Current assets

TollcompensationrecoverablefromtheGovernment 24 181,872 117,879 104,269 – – –

Inventories 332 118 27 332 118 27

Tradereceivables 25 10,324 – – – – –

Amountduefromcustomersoncontracts 17 17,629 – – – – –

Sundryreceivables,depositsandprepayments 25 56,377 77,688 63,391 5,834 5,899 6,006

Amountowingbyimmediateholdingcompany 26 500 – – – – –

Amountowingbysubsidiaries 26 – – – 73,793 573,269 535,823

Amountowingbyrelatedcompanies 26 45,969 1,937 7,568 124 131 74

Taxrecoverable 11,023 4,812 5,575 9,171 4,812 5,554

Shortterminvestments 27 49,933 129,936 63,389 9,996 24,968 –

Shorttermdepositswithlicensedbanks 28 3,440,123 2,851,406 2,209,124 281,028 163,029 6,190

Cashandbankbalances 28 38,412 32,124 25,306 15,000 325 253

3,852,494 3,215,900 2,478,649 395,278 772,551 553,927

Assetsofdisposalgroupclassifiedasheldforsale 21 31,625 – – 17,760 – –

TOTAL ASSETS 19,248,155 18,367,477 17,021,031 2,834,188 3,261,403 3,042,513


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Group Company Note 2010 2009 1.1.2009 2010 2009 1.1.2009

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000Restated Restated Restated Restated

EqUITY AND LIABILITIES

Equity attributable to owners of the parent

Sharecapital 29 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000Otherreserves 30 741,275 752,308 739,660 – – –Retainedearnings 31 4,199,527 4,074,326 3,687,948 41,418 519,672 576,903Reserveofdisposalgroupclassifiedasheldforsale 21 (477) – – – – –

6,190,325 6,076,634 5,677,608 1,291,418 1,769,672 1,826,903Minority interests 56,208 21,000 19,344 – – –Total equity 6,246,533 6,097,634 5,696,952 1,291,418 1,769,672 1,826,903

Non-current liabilitiesLongtermfinancialliabilities 34 8,629,565 8,763,035 7,965,604 1,429,054 1,377,021 776,174Longtermborrowings 35(A) 1,824,805 1,654,284 1,551,694 – – –AmountduetoGovernment 35(C) 38,096 38,096 38,096 – – –Amountowingtoimmediateholdingcompany 26 3,422 6,885 6,885 – – –

Amountowingtosubsidiary 26 – – – 64,535 84,850 86,850Retirementbenefits 38 17,545 15,698 14,071 – – –Deferredliabilities 39(a) 75,288 76,001 73,224 – – –Deferredrevenue 39(b) 40,740 43,789 46,622 – – –Deferredtaxliabilities 23 957,621 806,779 388,239 – – –

11,587,082 11,404,567 10,084,435 1,493,589 1,461,871 863,024Current liabilitiesTradepayables 32 60,709 35,454 27,331 – – –Amountduetocustomersoncontracts 17 1,074 – – – – –

Sundrypayablesandaccruals 40 145,291 127,160 135,739 47,775 28,238 22,955AmountreceivedfromtheGovernmentforAdditionalWorks 41 19,407 19,216 20,445 – – –Deferredliabilities 39(a) 7,788 6,920 6,473 – – –Deferredrevenue 39(b) 5,482 3,194 1,187 – – –Shorttermfinancialliabilities 34 938,959 557,917 623,132 – – –Shorttermborrowings 35(B) 140,945 23,947 332,801 – – 325,806Amountowingtoimmediateholdingcompany 26 4,492 4,255 1,338 777 796 265

Amountowingtosubsidiaries 26 – – – 15 – 3,203Amountowingtorelatedcompanies 26 88,700 86,406 91,073 614 826 357

Taxpayable 33 1,626 807 125 – – –1,414,473 865,276 1,239,644 49,181 29,860 352,586

Liabilitiesdirectlyassociatedwithdisposalgroupclassifiedasheldforsale 21 67 – – – – –

Total liabilities 13,001,622 12,269,843 11,324,079 1,542,770 1,491,731 1,215,610

TOTAL EqUITY AND LIABILITIES 19,248,155 18,367,477 17,021,031 2,834,188 3,261,403 3,042,513


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Attributable to Owners of the Parent

Non-Distributable Reserves

Distributable

NoteShare

CapitalOther

Reserves

Reserve ofdisposal

groupclassified asheld for sale

RetainedEarnings Total

Minority Interests Total

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

(Note 29) (Note 30) (Note 21) (Note 31)

GROUP

At 1 January 2010 (as previously stated) 1,250,000 752,308 – 4,074,326 6,076,634 21,000 6,097,634

EffectsofadoptingFRS139 – 3,657 – (305,969) (302,312) – (302,312)

Balance as at 1 January 2010 (restated) 1,250,000 755,965 – 3,768,357 5,774,322 21,000 5,795,322

Totalcomprehensiveincomefortheyear – (15,167) – 1,306,170 1,291,003 (8,524) 1,282,479

Acquisitionofsubsidiary 19(b) – – – – – 43,047 43,047

Issuanceofadditionalsharestominorityinterests – – – – – 685 685

Reserveattributabletodisposalgroupclassifiedasheldforsale – 477 (477) – – – –

Dividends 14 – – – (875,000) (875,000) – (875,000)

At 31 December 2010 1,250,000 741,275 (477) 4,199,527 6,190,325 56,208 6,246,533

At 1 January 2009 1,250,000 739,660 – 3,687,948 5,677,608 19,344 5,696,952

Totalcomprehensiveincomefortheyear – 12,648 – 1,186,378 1,199,026 1,656 1,200,682

Dividends 14 – – – (800,000) (800,000) – (800,000)

At 31 December 2009 1,250,000 752,308 – 4,074,326 6,076,634 21,000 6,097,634

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Attributable to Owners of the Parent

NoteShare

Capital

Distributable RetainedEarnings Total

RM’000 RM’000 RM’000

(Note 29) (Note 31)

COMPANY

At 1 January 2010 1,250,000 519,672 1,769,672

Totalcomprehensiveincomefortheyear – 396,746 396,746

Dividends 14 – (875,000) (875,000)

At 31 December 2010 1,250,000 41,418 1,291,418

At 1 January 2009 1,250,000 576,903 1,826,903

Totalcomprehensiveincomefortheyear – 742,769 742,769

Dividends 14 – (800,000) (800,000)

At 31 December 2009 1,250,000 519,672 1,769,672


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Note 2010 2009 2010 2009RM’000 RM’000 RM’000 RM’000

Cash flows from Operating ActivitiesTollcollections 2,735,035 2,577,608 – –Expresswayoperationservicesfees – – 117,787 97,558Receiptsfromexpresswayancillaryfacilities 18,922 22,702 – –

Otherincome 70,806 36,348 1,476 988Futuremaintenanceexpenditurereceived 1,936 11,887 – –

Paymentstocontractorsforroutinemaintenance (213,213) (225,167) – –

Otheroperatingexpenses (372,280) (340,848) (107,363) (92,525)Taxespaid (10,193) (7,275) (4,428) (4,817)Taxesrefunded 15,386 – 15,386 –Netcashgeneratedfromoperatingactivities 2,246,399 2,075,255 22,858 1,204

Cash flows from Investing ActivitiesProfitelementandinterestincomereceived 91,446 73,341 4,806 4,684

Proceedsfromdisposalofproperty,plantandequipment 115 576 36 80

Dividendsreceived – – 985,000 800,000Proceedsfrommaturityofshortterminvestments 291,000 171,000 60,000 14,000

ProceedsfromELITE'scapitalreduction – – 200,000 –

InterestearnedonamountreceivedfromtheGovernmentforAdditionalWorks 41 463 435 – –

Acquisitionsofsubsidiaries,netofcashandcashequivalentsacquired 19(b) (82,373) – (44,000) –

Investmentinsubsidiaries – – (76,099) (15,635)Investmentinassociates (33,425) – (33,407) –Longtermdeposits (22,047) – (22,047) –Purchaseofproperty,plantandequipment (12,984) (6,992) (5,814) (3,565)

Paymentforleaseholdland – – (2,000) (2,000)Purchaseofcomputersoftwares (1,320) (1,761) (740) (1,453)Purchaseofinvestments (215,954) (228,021) (44,895) (38,855)AdditionalWorks (4,639) (70,490) – –Concessionassets (421,860) (385,873) – –Netcash(usedin)/generatedfrominvestingactivities (411,578) (447,785) 1,020,840 757,256


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Group Company

Note 2010 2009 2010 2009RM’000 RM’000 RM’000 RM’000

Cash flows from financing Activities

ProceedsfromissuanceofIslamicSukuk 443,060 1,739,565 – 555,413

Drawdownofborrowings 135,585 26,934 – –

Proceedsfromminorityshareholdersinrespectofadditionalcapitalinjectionduringtheyear 428 – – –

Advancereceivedforadditionalsharesissuedtominorityinterests 5,680 – – –

RedemptionofSeniorSukuk/BAIDS (558,000) (1,265,000) – –

Settlementofborrowings (117,817) (326,268) – (325,249)

Dividendspaid (875,000) (800,000) (875,000) (800,000)

Interestpaid – (3,218) – (3,218)

ProfitelementsonSeniorSukuk,BAIDSandPLUSSPVSukuk (269,077) (355,983) (36,024) (28,495)

Netcashusedinfinancingactivities (1,235,141) (983,970) (911,024) (601,549)

Netincreaseincashandcashequivalents 599,680 643,500 132,674 156,911

Effectsofforeignexchangeratechanges (174) 5,600 – –

Cashandcashequivalentsatthebeginningoftheyear 2,883,530 2,234,430 163,354 6,443

Cashandcashequivalentsattheendoftheyear 3,483,036 2,883,530 296,028 163,354

Representedby:

Shorttermdepositswithlicensedbanks 28 3,440,123 2,851,406 281,028 163,029

Cashandbankbalances 28 38,412 32,124 15,000 325

Cashandcashequivalentsincludedinassetsofdisposalgroupclassifiedasheldforsale 21 4,501 – – –

3,483,036 2,883,530 296,028 163,354

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1 cORPORATE INfORMATION

PLUSExpresswaysBerhad(“theCompany”or“PEB”)isapubliclimitedliabilitycompany,incorporatedanddomiciledinMalaysia,andislistedontheMainBoardoftheBursaMalaysiaSecuritiesBerhad.TheregisteredofficeandtheprincipalplaceofbusinessoftheCompanyislocatedatMenaraKorporatPersada PLUS, Persimpangan Bertingkat Subang, KM 15, Lebuhraya Baru Lembah Klang, 47301PetalingJaya,SelangorDarulEhsan.

TheDirectorsregardUEMGroupBerhad(“UEM”),whichisincorporatedinMalaysiaandowns38.51%of theCompany’sequity asat 31December2010, as the immediateholding company. TheultimateholdingcompanyisKhazanahNasionalBerhad(“Khazanah”),whichisincorporatedinMalaysia.

TheprincipalactivitiesoftheCompanyareinvestmentholdingandprovisionofexpresswayoperationservices.Theprincipalactivitiesof thesubsidiariesandassociatesare investmentholding,highwayconcessionairesandrelatedservices.

TheMalaysiansubsidiariesandassociateoftheCompanyareasfollows:

(i) ProjekLebuhrayaUtara-SelatanBerhad(“PLUS”);PLUSisinvolvedintheconstruction,operation,maintenance and toll collection of theNorth-South Expressway (“NSE”), theNewKlang ValleyExpressway(“NKVE”),asectionofFederalHighwayRoute2(“FHR2”)betweenSubangandKlang,andtheSeremban-PortDicksonHighway(“SPDH”).

(ii) ExpresswayLingkaranTengahSdnBhd(“ELITE”);ELITEisinvolvedintheconstruction,operation,maintenance and toll collection of theNorth-South ExpresswayCentral Link (“NSECL”) and anextensionoftheKLIAExpressway(“KLIAExpressway”).

(iii) Linkedua(Malaysia)Berhad(“LINKEDUA”);LINKEDUAis involvedintheconstruction,operation,maintenanceandtollcollectionoftheMalaysia-SingaporeSecondCrossing(“MSSC”).

(iv) Konsortium LebuhrayaButterworth-Kulim (KLBK) SdnBhd (“KLBK”); KLBK is involved in theconstruction, operation,maintenance and toll collection of theButterworth-Kulim Expressway(“BKE”).

(v) PLUSHelicopterServicesSdnBhd (“PHS”);PHS is a dedicated aviation company that provideshelicoptercharterservices,includingaerialsurveillanceofexpressways.

(vi) Touch‘nGoSdnBhd(“TnG”);TnGisacompanyprimarilyinvolvedinprovidingcontactlessmeansoffarepaymentservicesviaapre-paide-paymentcardknownasTouch‘nGo.PEBacquired20%equityinterestinTnGon11June2010.

(vii) TerasTeknologiSdnBhd(“TERAS”)anditssubsidiaries;TERAS,whichwasacquiredon15June2010, is a company principally involved in investment holding and the provision of informationtechnology,outsourcing,e-commerceservicesandinternetrelatedservices.

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1 cORPORATE INfORMATION (cONTINUEd)

PEB’sinternationalsubsidiariesandassociateareasfollows:

(i) Theprincipalactivitiesofallof theCompany’ssubsidiaries inMauritiusare investmentholdinganddetailsareasfollows:

(a) PLUSKalyan(Mauritius)PrivateLimited(“PLUSKalyan”).

(b) PLUSPlaza(Mauritius)PrivateLimited(“PLUSPlaza”).

(c) PLUSJetpur(Mauritius)PrivateLimited(“PLUSJetpur”).

(ii) PEB’sforeigninvestmentsinIndiaare:

(a) PLUSBKSP Toll Limited (“PLUSBKSP”), a 94%-owned subsidiary of the Company, helddirectly and indirectly through PLUS Kalyan. PLUS BKSP is principally involved in theconstruction, operation,maintenance and toll collection of the 22-kilometre Bhiwandi-Kalyan-ShilPhataHighway(“BKSPHighway”)intheStateofMaharashtra,India.

(b) InduNavayugaInfraProjectPrivateLimited(“INIPPL”),a49%-ownedcompanyheldindirectlythroughPLUSPlaza.INIPPLisprincipallyinvolvedintheconstruction,operation,maintenanceandtollcollectionof thePadalurtoTrichysectionfromKm285toKm325ofNH-45 in theStateofTamilNadu,India.

(c) Jetpur-SomnathHighway Limited (“JSHL”), a 26%-owned company held indirectly throughPLUS Jetpur. JSHL is principally involved in the design, engineering, procurement,construction,maintenance, operations and toll collection of Km 0 to Km 127.6 on Jetpur-SomnathsectionofNH-8DintheStateofGujarat,India.

(iii) PEB’sforeigninvestmentsinIndonesiaare:

(a) PT LintasMarga Sedaya (“LMS”), a 55%-owned subsidiary of PEBwhich undertakes thedesign, construction, operation, maintenance and toll collection of the 116-kilometreCikampek-PalimananHighwayinIndonesia.

(b) PTCimanggis-CibitungTollways(“CCTW”),a60%-ownedsubsidiaryofPEBwhichisinvolvedintheconstruction,operationandmaintenanceoftheproposed25.4kmPackage4-Cimanggis-CibitungTollRoadinIndonesia.

There have beenno significant changes in the nature of the principal activities during the financialyearexcept for theprincipalactivityofTERASasmentioned inNote19 to thefinancial statements.FurtherdetailsofthesubsidiariesandassociatesareinNotes19and20respectively.

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(a) PLUS

TheGovernmentofMalaysia(“theGovernment”)andUEMenteredintoaConcessionAgreementdated18March1988inconnectionwiththeNSE,theNKVEandtheFHR2projectsforaconcessionperiodof30years,ending31May2018.

Subsequently,UEMandPLUSenteredintoaNovationAgreementwiththeGovernmentdated20July1988whereby,withtheapprovaloftheGovernment,UEMassigneditsrightsandtransferreditsliabilitiesandobligationsundertheConcessionAgreementtoPLUS.

On 8 July 1999, PLUS entered into a Supplemental Concession Agreement (“SCA”) with theGovernmentwherebythetollratestructurewasrevisedandtollrevenuesharingarrangementswere established between the parties. As a result of the revision in the toll rate structure, theconcessionperiodwasextendedforanother12yearstoendon31May2030.

On11May2002,PLUSenteredintoaSecondSupplementalConcessionAgreement(“SSCA”)withthe Governmentwhereby toll rate structurewas further revised for the remaining concessionperiod and toll compensation and set off arrangementswere established between the parties.Thenewtollratestructuresareasfollows:

(i) increaseofClass1tollrateby10%from11.24sen/kmto12.36sen/km,whichcommencedfrom1January2002until31December2004;

(ii) scheduledincreasesofClass1tollrateby10%every3yearsthereafter.

Thesecond10%scheduled increase in toll rate from12.36sen/kmto13.60sen/kmtookeffectfrom1January2005until31December2007.Thethird10%scheduledincreaseintollratefrom13.60sento14.96senwhichwastotakeeffectfrom1January2008hasnotbeenappliedasyet.BasedonthetermsoftheConcessionAgreement,theGovernmenthasagreedtocompensateinfullforthedifferentialintollrates.

Toll rates forotherclassesofvehiclesaredeterminedbasedonpre-set factorsbyreference toratesapplicabletoClass1vehicles.

On22April2005,PLUSenteredintoaThirdSupplementalConcessionAgreement(“TSCA”)(whichtook effect on 31 December 2004) with the Government which amongst others, sets out thesettlementarrangementforthefundingoftheconstructionofthirdlanesalongcertainstretchesof NSE and the construction of a non-stop through traffic between Ipoh Selatan Toll Plazaand Jelapang Toll Plaza (collectively referred to as “AdditionalWorks”) and the compensationreceivable fromtheGovernment for theclosureof theSenaiTollPlaza (“SenaiCompensation”).ThesettlementarrangementincludesthetakeoverofSPDH,thesetoffagainsttheGovernmentSupportLoan(“GSL”)andtheAdditionalSupportLoan(“ASL”)andtheextensionoftheconcessionperiodforanother8yearsand7monthstoendon31December2038.Inaddition,PLUSenteredintoaProceedsAccountAgreementtoadministerthecashpertainingtoAdditionalWorksassetoutinNote41.

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2 AWARd Of cONcESSIONS (cONTINUEd)

(a) PLUS (CONTINUED)

Furthermore, the TSCA states that all rights and entitlement of PLUS in respect of the Senai-JohorBahrusection shall be reverted to and vested in theGovernmentandPLUSwill havenofurther liabilities and responsibilities in relation thereto following the closure of the Senai TollPlazaeffective1March2004.

Details of the toll compensation arrangement pursuant to the SSCA, and the settlementarrangementpursuanttotheTSCAaresetoutinNote3,‘RevisedTollRates,TollCompensationArrangementsandSettlementArrangements’.

(b) ELITE

TheGovernmentandUEMenteredintoaConcessionAgreementdated26April1994inconnectionwiththeconstruction,operation,maintenanceandtollcollectionof theNSECLforaconcessionperiodof24years,ending31May2018.

Subsequently, UEM and ELITE entered into a Novation Agreement with the Government on27 January 1995whereby, with the approval of the Government, UEM assigned its rights andtransferreditsliabilitiesandobligationsundertheConcessionAgreementtoELITE.

On9January1997,ELITEenteredintoaSCAwiththeGovernmentwhereby,amongstothers,tobuild three additional interchanges along theNSECLExpressway and an extension of theKLIAExpressway.

On23March2001,ELITEenteredintoaSSCAwiththeGovernmentwhereby,amongstothers,theconcessionperiodwasextendedfrom31May2018to31May2025.

On10January2003,ELITEentered intoaTSCAwiththeGovernmentwhereby,amongstothers,toll rate structureswere further revised, uponwhich the Companywas compensated throughamongstothers,afurtherextensionoftheconcessionperiodto31May2030.

(c) LINKEDUA

TheGovernmentandUEMenteredintoaConcessionAgreementdated27July1993inconnectionwith the design, construction,management, operations,maintenance and toll collection of theMSSCforaconcessionperiodof30years,ending26July2023.

Subsequently,UEMandLINKEDUAentered intoaNovationAgreementwith theGovernmenton10May1994whereby,UEMassigneditsrightsandtransferreditsliabilitiesandobligationsundertheConcessionAgreementtoLINKEDUA.

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(c) LINKEDUA (CONTINUED)

On12September1994,LINKEDUAenteredintoaSCAwiththeGovernmenttotakeintoaccounttheInter-GovernmentAgreementbetweentheGovernmentandtheGovernmentofSingaporeon22March1994(“Inter-GovernmentAgreement”)suchthat,theLINKEDUAConcessionAgreementareconsistentwiththeGovernment’sobligationundertheInter-GovernmentAgreementrelatingto theworks and rights in connectionwith theMalaysian side of the bridge and theCustoms,Immigration&QuarantineComplex.

On30May2000,LINKEDUAenteredintoaSSCAwiththeGovernmentwhereby,amongstothers,theconcessionperiodwasextendedby15yearsto31December2038.Thetollratestructurewasalsorevised.Inaddition,revenuesharingarrangementswereestablishedbetweentheparties.

(d) KLBK

The Government and KLBK entered into a Concession Agreement dated 28 June 1994 inconnectionwith thedesign,construction,operation,maintenanceand toll collectionof theBKEforaconcessionperiodof32yearsending27June2026.

On 4 June 2007,KLBKentered into aSCAwith theGovernment to restructure the toll rate forKubangSemangandLunasTollPlaza,commencingfrom1June2005.Thenewagreedtollratesis applicable for the remaining concession years until the expiry of the concession period in2026.

(e) PLUS BKSP

On25August2006,theCompanyandConceptManagementConsultingPrivateLimitedthroughanunincorporated consortium (“PEB-CMCLConsortium”), PLUSBKSP and theMaharashtra StateRoad Development Corporation Limited (“MSRDC”) entered into a Concession Agreement toundertake the proposed four-laning and improvement, operation andmaintenance and tollcollection of Bhiwandi-Kalyan-Shil PhataHighway (“BKSPHighway”) on a Build, Operate andTransfer basis (“BKSPProject”). Concurently, PEB-CMCLConsortium andPLUSBKSP enteredintoanIntraGroupAgreementwhichprovidesforthetransferofallrights,benefitsandobligationsofPEB-CMCLConsortiumtoPLUSBKSPwhichinturnagreedtoexecuteandcompletetheBKSPProject in compliancewith the terms and conditions of the Concession Agreement. The initialconcession period is for 6 years, 8months and 4 days from the date of the execution of theConcessionAgreement.

PLUSBKSP has received an approval fromMSRDC for a further extension to the constructionuntil29December2009ofwhichanadditionalextensionof249daysweregrantedon30October2009 thusmaking the totalextensionreceivedof674days for theproject.ThedeterminationoftheRevisedConcessionPeriodshallbefinalisedonceallclaimsresultedfromvariationsworks,additionalworks,reimbursablecostsandothercostclaimsrelatedtotheprojectareapprovedbyMSRDC.

PLUSBKSPcommencedoperationsandstartedtollingon22August2009.

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(f) LMS

On 21 July 2006, LMS and the Government of the Republic of Indonesia have entered into aConcession Agreement in which LMSwas appointed as the concessionaire to undertake thedesign, construction, ownership,management, financing, operation,maintenance as well astoll collection of the 116-kilometre Cikampek-Palimanan toll highway (“Cikampek-PalimananHighway”) on a build, operate and transfer basis. The concession period for the Cikampek-PalimananHighwayis35years.

(g) CCTW

On 18 September 2007, the Company has received a letter from theMinister of PublicWorks,Republicof Indonesia informingthesuccessof thetenderbid jointlysubmittedbytheCompanyanditsIndonesianpartners,namelyPTBakrie&BrothersTbkandPTCapitalincInvestmentTbk(“Consortium”) for the proposed 25.4 kilometer Package 4-Cimanggis-Cibitung Toll Road on aBuild,OperateandTransferbasis.TheCimanggis-CibitungTollRoadformspartoftheproposedJakarta Outer Ring Road 2 and is located on the outskirts of the Jakartametropolitan area.Theconcessionshallbeforaperiodof35yearsfromthedateof theproposedexecutionof therelevantConcessionAgreement.

(h) INIPPL

INIPPLandNationalHighwaysAuthorityof India(“NHAI”)enteredintoaConcessionAgreementdated 30May 2006 for INIPPL to undertake the design, engineering, construction, finance,operation,maintenance and toll collection of the four laning and strengthening of Padalur toTrichy section fromKm 285 to Km 325 onNH-45 in the State of Tamil Nadu, India, on BuiltOperateTransfer(BOT)basis.Theconcessionperiodforthisprojectis25years.

INIPPLhascommencedoperationandstartedtollingon6May2010.

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ARRANGEMENTS Of PLUS, ELITE ANd kLbk

(i) PLUS

(a) Revised Toll Rate Structures

In consideration of PLUS agreeing to the revised toll rate structures applicable from 1January2002(detailsofwhicharesetoutinNote2(a)above)theGovernmentagreedtothefollowing:

(i) towaivePLUS’sobligation topay the interestaccrued to1January2002amounting toRM1,729.22milliononitsGSL;

(ii) towaivePLUS’sobligationtopay interestontheremainingprincipalamountofRM750millionontheGSL,after(i)above;and

(iii) toaddressthemannerinwhichtheGovernmentwoulddischargeitsliability inrespectoftheamountofcompensationduethatwouldariseineachoftheremainingconcessionyears; such compensationwould arise as the new toll rateswhich took effect from 1January2002are lowerthanthetollratescontemplated in theSCApreviouslyenteredinto;andthearrangementshavebeenformalisedthroughtheSSCA,andinthemannerdescribedin(b)below,‘TollCompensationArrangements’.

(b) Toll Compensation Arrangements

UnderthetollcompensationarrangementspursuanttotheSSCA,compensationrecoverablefromtheGovernmentfortheeffectsofimposingtollrateslowerthanthosepreviouslyagreedshallbeadjustedforthefollowing:

(i) deductionforthenotionaltaxondividendsthatPLUSwilldeclareandpay(ifany)fromthe tax exempt profits earned during the five year tax-exempt period from 2002 to2006;

(ii) deductionforinterestthatwouldhavebeenpayabletotheGovernmentontheGSL,hadtheGovernmentnotwaivedPLUSfromitsobligationtopaysuchinterest;

(iii) setoffofPLUS’sincometaxliabilitiesagainstsuchcompensationduetoPLUSafterthedeductionsreferredtoin(i)and(ii)above;and

(iv) setoffofanyTollSharingAmountduetotheGovernmentagainsttheresultantfrom(iii)above.

UndertheSSCA,inanyconcessionyearafterthetaxexemptperiod,ifthereisanytaxamountowingbyPLUS to theGovernmentafter taking intoconsideration theadjustments referredtoin(i),(ii)and(iii)above,PLUSshallpaysuchtaxamountowedbyittotheGovernmentincash.

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3 REvISEd TOLL RATES, TOLL cOMPENSATION ARRANGEMENTS ANd SETTLEMENT ARRANGEMENTS Of PLUS, ELITE ANd kLbk (cONTINUEd)

(i) PLUS (CONTINUED)

(b) Toll Compensation Arrangements (Continued)

TheSSCAprovides that thepaymentof such taxamount shallnot includeany toll sharingtobepaid to theGovernment (ifapplicable),whichshallcontinue tobecarried forward forutilisationagainst future tollcompensationamounts.Uponexpiryof theconcessionperiod,anyamountsoftaxpayableandtollsharingamountswhichhavenotbeenutilisedunderthecompensation arrangements referred to above are to be paid byPLUS to theGovernment.However, if thereareanyamountsduefromtheGovernmentuponexpiryoftheconcessionperiod,suchamountsaretobewaivedbyPLUS.

In the event that the Government imposes a toll rate which is lower than the toll ratesstated in the SSCA for any concession year, the SSCA provides that the amount of furthercompensationarisingwillbepaidinfull.

(c) Settlement Arrangements

The TSCA sets out the settlement arrangement between the Government and PLUS forthe funding of AdditionalWorks estimated at RM1,042.48million and Senai CompensationamountingtoRM331.68million,inthefollowingmanner:

(a) TakeoverofSPDHbyPLUSatavalueofRM50.27millionaspartsettlementfortheSenaiCompensation;

(b) Set off against amount outstanding under the GSL and ASL amounting to RM962.00million,comprising:

(i) RM281.41milliontosettlethebalanceoftheSenaiCompensation;and

(ii) RM680.59milliontopartsettlethecostfortheAdditionalWorks;and

(c) Thebalanceof thecost for theAdditionalWorksofRM361.89millionhasbeensettledbytheGovernmentbywayofextendingtheconcessionperiodforafurther8yearsand7months,toendon31December2038.

The key consequential changes under the TSCA in respect of the Toll CompensationArrangementsasperNote3(i)(b),asaresultofthesettlementarrangementareasfollows:

(i) The toll compensationshallbecalculatedup to31May2030 insteadof theendof theconcessionperiodwhichhasnowbeenextendedto31December2038.

(ii) InterestthatwouldhavebeenpayabletotheGovernmentasreferredtoinNote3(i)(b)(ii)above,shallbeequivalent tonil commencing fromtheyear inwhichGSLandASLarefullysettled.

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ED) 3 REvISEd TOLL RATES, TOLL cOMPENSATION ARRANGEMENTS ANd SETTLEMENT

ARRANGEMENTS Of PLUS, ELITE ANd kLbk (cONTINUEd)

(i) PLUS (CONTINUED)

(c) Settlement Arrangements (Continued)

(iii) The toll compensation shall be calculatedwithout taking into account SPDH’s trafficvolume.

(iv) Any toll compensation amount due from the Government as at 31May 2030 shallcontinue to be deducted against the toll sharing for that concession year and eachconcessionyearthereafter.

(ii) ELITE

(a) Revised Toll Rate Structures

ThroughtheTSCA(asreferredtoinNote2(b)),thenewtollratestructureshavebeenrevisedto increase by 10% every three years commencing 1 January 2002 until the expiry of theconcessionperiod.Thetollratehadbeenincreasedfrom12.36senperkmto13.60senperkmeffectivefrom1January2005.Thenext10%tollrateincreasehadbeenimplementedon1January2008.

(b) Toll Compensation Arrangements

In consideration of ELITE agreeing to the revised toll rate structures as referred in theprecedingparagraph,theGovernmentagreedtothefollowing:

(i) toprovideELITEwithaninterest-freetermloanfacilityofuptothemaximumprincipalamount of RM300million and the loan shall be repaid in full at the repayment datedisclosedinNote34;

(ii) towaive all its rights to interestwhichhasaccruedon theexistingGovernmentLoan,ofRM89.9million, for theperiod from15December2000 to31December2001and tochargenointerestontheRM89.9millionloanfortheperiodfrom1January2002uptothefinalrepaymentdateoftheloan;

(iii) toanextensionoftheconcessionperiodforafurther5yearsfrom31May2025to31May2030;and

(iv) toallowandauthoriseELITEtocollectandretainthelevyontheextensionoftheKLIAExpressway throughout the concessionperiodand to increase the levyby10%every3yearsuntil theexpiryoftheconcessionperiod,ofwhichthefirst increasewaseffectedon1January2002.

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3 REvISEd TOLL RATES, TOLL cOMPENSATION ARRANGEMENTS ANd SETTLEMENT ARRANGEMENTS Of PLUS, ELITE ANd kLbk (cONTINUEd)

(ii) ELITE (CONTINUED)

(b) Toll Compensation Arrangements (Continued)

ELITEenteredintoanAdditionalGovernmentLoanAgreement(“AGLA”)andaSupplementalLoanAgreement (“SLA”)with theGovernmenton15January2003 in respectof theRM300million additional loan and the waiver of interest on the existing Government Loan, asdescribedin(i)and(ii)aboverespectively.

(iii) LINKEDUA

(a) Revised Toll Rates Structure

TheGovernmenthas,on1August2010,imposeda30%reductionfor2yearsupto30June2012inthetollrateforallclassesofvehiclesatTanjungKupangtollplaza,thedifferenceofwhichwillbecompensatedbytheGovernment.

(b) Toll Compensation Arrangement

In the event that the Government imposes a toll rate which is lower than the toll ratesstatedintheSSCAforanyconcessionyear,theGovernmentshallcompensatebasedonthecomputationprovidedintheSSCA.

(iv) KLBK

(a) Revised Toll Rates Structure

Through the SCA (as referred to inNote 2(d)), the toll rate structures for Class 1 vehiclehave been revised toRM1.30 per entry commencing 1 June 2005 until 31December 2007.Thereafter, the toll rate increasesbyRM0.30perentry for everyfive yearsuntil theexpiryoftheconcessionperiod.Thefirsttollrate increaseofRM0.30hadbeenimplementedon1January2008.

Tollratesforotherclassesofvehiclesaredeterminedbasedonpre-setfactorsbyreferencetoratesapplicabletoClass1vehicles.

(b) Toll Compensation Arrangement

In consideration of KLBK agreeing to the revised toll rate structures as referred in theprecedingparagraph,theGovernmenthascompensatedtheamountofRM60.59millionin2installments in2005and2006, for thedifference in the toll rates for futureyearsup to theendoftheconcessionperiodbasedonthetrafficprojections.

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ED) 4 SIGNIfIcANT AccOUNTING POLIcIES

4.1 basis of Accounting and Preparation of the financial Statements

The financial statements of the Group and of the Company complywith the provisions of theCompanies Act, 1965 and applicable Financial Reporting Standards inMalaysia. The financialstatementsoftheGroupandoftheCompanyhavealsobeenpreparedonahistoricalbasis,unlessotherwisestatedintheaccountingpoliciesbelow.

ThefinancialstatementsarepresentedinRinggitMalaysia(RM)andallvaluesareroundedtothenearestthousand(RM’000)exceptwhenotherwiseindicated.

4.2 Summary of Significant Accounting Policies

(a) Subsidiaries

Subsidiaries are entities overwhich the Group has the ability to control the financial andoperatingpolicies soas toobtainbenefits from their activities. Theexistenceandeffect ofpotential voting rights that are currently exercisable or convertible are consideredwhenassessingwhethertheGrouphassuchpoweroveranotherentity.

TheCompany’s investments in subsidiaries are stated at cost less impairment losses. ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote4.2(i).

On disposal of such investments, the difference between net disposal proceeds and theircarryingamountsisrecognisedintheincomestatements.

(b) Associates

Associates are entities inwhich the Group has significant influence and that is neither asubsidiarynoraninterestinajointventure.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutnotincontrolorjointcontroloverthosepolicies.

Investments inassociatesareaccounted for in theconsolidatedfinancial statementsusingthe equitymethod of accounting. Under the equitymethod, the investment in associate iscarriedinthestatementoffinancialpositionatcostadjustedforpost-acquisitionchangesintheGroup’sshareofnetassetsof theassociate.TheGroup’sshareofthenetprofitor lossoftheassociate isrecognisedintheconsolidated incomestatement.Wheretherehasbeenachangerecogniseddirectlyintheequityoftheassociate,theGrouprecognisesitsshareofsuchchanges.

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4 SIGNIfIcANT AccOUNTING POLIcIES (cONTINUEd)

4.2 Summary of Significant Accounting Policies (continued)

(b) Associates(Continued)

In applying the equitymethod, unrealised gains and losses on transactions between theGroupandtheassociateareeliminatedtotheextentoftheGroup’sinterestintheassociate.After application of the equitymethod, the Group determineswhether it is necessary torecogniseanyadditional impairment losswithrespect to theGroup’snet investment in theassociate.Theassociate isequityaccountedfor fromthedatetheGroupobtainssignificantinfluenceuntilthedatetheGroupceasestohavesignificantinfluenceovertheassociate.

Goodwill relating to anassociate is included in the carryingamountof the investmentandis not amortised. Any excess of the Group’s share of the net fair value of the associate’sidentifiable assets, liabilities and contingent liabilities over the cost of the investment isexcluded from thecarryingamountof the investmentand is instead includedas income inthedeterminationoftheGroup’sshareoftheassociate’sprofitorlossintheperiodinwhichtheinvestmentisacquired.

When the Group’s share of losses in an associate equals or exceeds its interest in theassociate, including any long-term interests that, in substance, form part of the Group’snetinvestmentintheassociates,theGroupdoesnotrecognisefurtherlosses,unlessithasincurredobligationsormadepaymentsonbehalfoftheassociate.

Themost recent available audited financial statements of the associates are used by theGroup in applying the equitymethod.Where the dates of the audited financial statementsusedarenotcoterminouswiththoseoftheGroup,theshareofresultsisarrivedatfromthelastauditedfinancialstatementsavailableandmanagementfinancialstatementstotheendof theaccountingperiod.Uniformaccountingpolicesareadopted for like transactionsandeventsinsimilarcircumstances.

In the Company’s separate financial statements, investments in associates are stated atcostlessimpairmentlosses.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote4.2(i).

On disposal of such investments, the difference between net disposal proceeds and theircarryingamountsisincludedinincomestatement.

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(c) BasisofConsolidation The consolidated financial statements comprise the financial statements of the Company

anditssubsidiariesasatthereportingdate.ThefinancialstatementsofthesubsidiariesarepreparedforthesamereportingdateastheCompany.

Themergermethodofaccountingwasused inconsolidatingtheCompanyandPLUSintheyear2002whichmeetstherelevantcriteriasetoutintheFRS1222004“BusinessCombination”,thusdepicting thecombinationof theseentitiesas if theyhadbeen in combination for theentireperiod.

Forothersubsidiaries,theyareconsolidatedfromthedateofacquisition,beingthedateonwhich theGroup obtains control, and continue to be consolidated until the date that suchcontrol ceases. In preparing the consolidated financial statements, intragroup balances,transactions and unrealised gains or losses are eliminated in full. Uniform accountingpoliciesareadoptedintheconsolidatedfinancialstatementsforliketransactionsandeventsinsimilarcircumstances.

Acquisitions of subsidiaries are accounted for using the purchasemethod. The purchasemethodof accounting involvesallocating the cost of theacquisition to the fair valueof theassetsacquiredand liabilitiesandcontingent liabilitiesassumedat thedateofacquisition.The cost of an acquisition ismeasured as the aggregate of the fair values, at the date ofexchange,oftheassetsgiven,liabilitiesincurredorassumed,andequityinstrumentsissued,plusanycostsdirectlyattributabletotheacquisition.

AnyexcessofthecostoftheacquisitionovertheGroup’sinterestinthenetfairvalueoftheidentifiable assets, liabilities and contingent liabilities represents goodwill. Any excess oftheGroup’s interest in thenet fairvalueof the identifiableassets, liabilitiesandcontingentliabilitiesoverthecostofacquisitionisrecognisedimmediatelyintheincomestatement.

Minority interests represent the portion of profit or loss andnet assets in subsidiaries notheldbytheGroup.Itismeasuredattheminorities’shareofthefairvalueofthesubsidiaries’identifiableassetsandliabilitiesattheacquisitiondateandtheminorities’shareofchangesinthesubsidiaries’equitysincethen.

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(d) Property,PlantandEquipment,andDepreciation

Property, plant and equipment are stated at cost less accumulated depreciation andimpairmentlosses.ThepolicyfortherecognitionandmeasurementofimpairmentlossesisinaccordancewithNote4.2(i).

Freeholdlandisnotdepreciated.Depreciationisprovidedforonastraightlinebasisovertheestimatedusefullivesoftheproperty,plantandequipment.Theannualratesofdepreciationareasfollows:

Renovations 10%Aircrafts 12%MotorVehicles 20%FurnitureandFittings 20%OfficeEquipment 20%Computers 20%TelecommunicationSystem 20%OperationToolsandEquipment 20%Buildings 2%LeaseholdLand Overleaseholdperiodof99years

Upondisposalofan itemofproperty,plantandequipment, thedifferencebetween thenetdisposalproceedsandthenetcarryingamountisrecognisedintheincomestatement.

The residual value, useful life and depreciationmethod are reviewed at each financialyear-endtoensurethat theamount,methodandperiodofdepreciationareconsistentwithpreviousestimatesandtheexpectedpatternofconsumptionofthefutureeconomicbenefitsembodiedintheitemsofproperty,plantandequipment.

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(e) IntangibleAssets

Intangible assets acquired separately aremeasured on initial recognition at cost. The costof intangible assets acquired in a business combination is their fair values as at the dateof acquisition. Following initial recognition, intangible assets are carried at cost less anyaccumulated amortisation and any accumulated impairment losses. The useful lives ofintangible assets are assessed to be either finite or indefinite. Intangible assetswith finitelives are amortised on a straight-line basis over the estimated economic useful lives andassessed for impairmentwhenever there is an indication that the intangible assetmay beimpaired.Theamortisationperiodandtheamortisationmethodforanintangibleassetwithafiniteusefullifearereviewedatleastateachreportingdate.

Computersoftwareand licensesthatdonot forman integralpartof therelatedhardwaresaretreatedasintangibleassetswithfinitelivesandareamortisedovertheirestimatedlivesattherateof20%.

Intangible assetswith indefinite useful lives are not amortised but tested for impairmentannually ormore frequently if the events or changes in circumstances indicate that thecarryingvaluemaybe impairedeither individuallyorat thecash-generatingunit level.Theusefullifeofanintangibleassetwithanindefinitelifeisalsoreviewedannuallytodeterminewhethertheusefullifeassessmentcontinuestobesupportable.

(f) Leases

AleaseisrecognisedasafinanceleaseifittransferssubstantiallytotheGroupalltherisksandrewards incidental toownership.Leases thatdonot transfersubstantiallyall therisksandrewardsareclassifiedasoperatingleases.

(g) ConcessionAssets

Items classified as Concession Assets comprise Expressway Development Expenditure,HeavyRepairsandOtherConcessionAssets.

(i) Expressway Development Expenditure

ExpresswayDevelopment Expenditure (“EDE”) comprises development and upgradingexpenditure(includinginterestchargesrelatingtofinancingofthedevelopment)incurredinconnectionwiththeconcession.

EDEisstatedatcostlessaccumulatedamortisationandimpairmentlosses.Thepolicyfor therecognitionandmeasurementof impairment losses is inaccordancewithNote4.2(i).

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(g) ConcessionAssets(Continued)

(i) Expressway Development Expenditure (Continued)

EDE is amortisedover the concessionperiod. Theamortisation formulaapplied in thepreparationof thefinancialstatements toarriveat theannualamortisationcharge foreachfinancialperiodisasfollows:

Tollrevenuefortheyear

[Actualtollrevenuefortheyear+Projectedtotaltollrevenueforthesubsequentyearstotheend

oftheconcessionperiod]

[NetBookValueofEDEatbeginningoftheyear+Additionsfortheyear]

Tollrevenueandprojectedtotaltollrevenueincludetollcollection,tollcompensationnetofanynotionaltaxontaxexemptdividend.

The projected total toll revenue is based on the latest available base case trafficprojections prepared by independent traffic consultantsmultiplied by the toll ratestructuresdescribed inNote2.Thetrafficvolumeprojection is independentlyreviewedonaperiodicbasis.

(ii) Heavy Repairs

Heavy repairs relate to costs incurred to repair bridges, slopes and embankments,rectification of settlements and pavement rehabilitation ofmedium and high trafficsectionsalongtheExpressways.Thecostsofheavyrepairsareamortisedonastraightlinebasisover7yearscommencingfromthedateofincurrence,thisbeingtheanticipatedeconomiclifeofsuchworks.

(iii) Other concession assets

Other concession assets comprise toll equipment, video surveillance equipment,telecommunicationnetwork,centralisedlighting,andtolloperationcomputerhardwareand software, and are stated at cost less accumulated amortisation and impairmentlosses. The policy for the recognition andmeasurement of impairment losses is inaccordance with Note 4.2(i). The annual amortisation in respect of these assets iscomputed on a straight line basis over their estimated useful lives at the followingrates:

%Softwareandcomputerhardware 12.5Others 10

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(g) ConcessionAssets(Continued)

(iv) Capital Work-In-Progress

Capital work-in-progress is not depreciated until the asset is fully completed andbroughtintouse.

(h) Amountduefrom/toCustomersonContracts

Profitoncontracts is recognisedassoonas theoutcomeof thecontract canbeestimatedreliably.TheGroupusesthepercentageofcompletionmethodtodeterminetheappropriateamount to be recognised as contract revenue in a givenperiod; the stage of completion ismeasuredbyreferencetoworkperformedandontheproportionofcontractcosts incurredforworkperformedtodateovertheestimatedtotalcontractcosts.

Wheretheoutcomeofacontractcannotbeestimatedreliably,contractrevenueisrecognisedto theextentofcontractcosts incurred that isprobablewillberecoverable.Contractcostsarerecognisedasexpensesintheperiodinwhichtheyareincurred.

Whenitisprobablethattotalcontractcostswillexceedtotalcontractrevenue,theexpectedloss is recognised as an expense immediately. When costs incurred on contracts plusrecognised profit (less recognised losses) exceeds progress billings, the balance is shownasamountduefromcustomersoncontracts.Whenprogressbillingsexceedcosts incurredplus recognised profits (less recognised losses), the balance is shown as amount due tocustomersoncontracts.

(i) ImpairmentofNon-financialAssets

For the purpose of impairment testing of the non-financial assets, recoverable amount isdeterminedonanindividualassetbasisunlesstheassetdoesnotgeneratecashflowsthatarelargelyindependentofthosefromotherassets.Ifthisisthecase,recoverableamountisdeterminedforthecash-generatingunit(“CGU”)towhichtheassetbelongsto.

Anasset’srecoverableamountisthehigherofanasset’sorCGU’sfairvaluelesscoststosellanditsvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsof the time valueofmoneyand the risksspecific to theasset.Where thecarryingamountofanassetexceedsitsrecoverableamount,theassetisconsideredimpairedandiswrittendowntoitsrecoverableamount.ImpairmentlossesrecognisedinrespectofaCGUorgroupsofCGUsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtothoseunitsorgroupsofunitsandthen, toreducethecarryingamountof theotherassets in theunitorgroupsofunitsonapro-ratabasis.

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(i) ImpairmentofNon-financialAssets(Continued)

Animpairmentlossisrecognisedinprofitorlossintheperiodinwhichitarises,unlesstheassetiscarriedatarevaluedamount,inwhichcasetheimpairmentlossisaccountedforasa revaluationdecrease to theextent that the impairment lossdoesnotexceed theamountheldintheassetrevaluationreserveforthesameasset.

(j) IncomeTaxes

Incometaxontheprofitorlossfortheyearcomprisescurrentanddeferredtax.Currenttaxistheexpectedamountof incometaxespayable inrespectofthetaxableprofitfortheyearandismeasuredusingthetaxratesthathavebeenenactedatthereportingdate.

Deferred tax is provided for, using the liabilitymethod, on temporary differences at thereportingdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsinthe financial statements. In principle, deferred tax liabilities are recognised for all taxabletemporary differences and deferred tax assets are recognised for all deductible temporarydifferences, unused tax lossesandunused tax credits to theextent that it is probable thattaxable profitwill be available againstwhich the deductible temporary differences, unusedtax losses and unused tax credits can be utilised. Deferred tax is not recognised if thetemporarydifferencearisesfromgoodwillornegativegoodwillorfromtheinitialrecognitionofanassetor liability inatransactionwhich isnotabusinesscombinationandat thetimeofthetransaction,affectsneitheraccountingprofitnortaxableprofit.

Deferred tax ismeasured at the tax rates that are expected to apply in the periodwhenthe asset is realised or the liability is settled, based on tax rates that have been enactedor substantively enacted at the reporting date. Deferred tax is recognised in the incomestatements,exceptwhen itarises froma transactionwhich isrecogniseddirectly inequity,inwhichcasethedeferredtaxisalsochargedorcrediteddirectlyinequity,orwhenitarisesfromabusinesscombinationthatisanacquisition,inwhichcasethedeferredtaxisincludedintheresultinggoodwillornegativegoodwill.

Deferredtaxassetsanddeferredtaxliabilitiesareoffset,ifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxesrelatetothesameentityandthesametaxauthority.

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(k) ProvisionsforLiabilities

Provisions for liabilities are recognisedwhen the Company has a present obligation as aresult of a past event and it is probable that anoutflowof resources embodyingeconomicbenefitswillberequiredtosettletheobligation,andareliableestimateoftheamountcanbemade.Provisionsarereviewedateachreportingdateandadjustedtoreflectthecurrentbestestimate.Wheretheeffectofthetimevalueofmoneyismaterial,theamountofaprovisionisthepresentvalueoftheexpenditureexpectedtoberequiredtosettletheobligation.

(l) EmployeeBenefits

(i) Short term benefits

Wages, salaries, bonuses and social security contributions are recognised as anexpense intheyear inwhichtheassociatedservicesarerenderedbyemployeesoftheCompany. Short termaccumulating compensated absences such as paid annual leavearerecognisedwhenservicesarerenderedbyemployeesthatincreasetheirentitlementtofuturecompensatedabsences.Shorttermnon-accumulatingcompensatedabsencessuchassickleavearerecognisedwhentheabsencesoccur.

(ii) Defined contribution plans

As required by law, companies in Malaysiamake contributions to the EmployeesProvidentFund(“EPF”).Suchcontributionsarerecognisedasanexpenseintheincomestatementsasincurred.SomeoftheGroup’sforeignsubsidiariesalsomakecontributionstotheirrespectivecountries’statutorypensionschemes.

(iii) Defined benefit plans

PLUS, ELITE and LINKEDUA operate unfunded, defined benefit Retirement BenefitScheme (“the Scheme”) for their personnel whose employment contracts weretransferred in 1988 fromMalaysian Highway Authority, pursuant to the ConcessionAgreement. Their obligations under the Scheme, calculated using the ProjectedUnitCreditMethod,isdeterminedbasedonactuarialcomputationsbyindependentactuaries,throughwhich the amount of benefit that employees have earned in return for theirservice in thecurrentandprior years isestimated.Thatbenefit isdiscounted inorderto determine its present value. Actuarial gains and losses are recognised as incomeor expense over the expected average remaining working lives of the participatingemployeeswhenthecumulativeunrecognisedactuarialgainsorlossesfortheSchemeexceed10%ofthepresentvalueofthedefinedbenefitobligation.Pastservicecostsarerecognisedimmediatelytotheextentthatthebenefitsarealreadyvested,andotherwiseare amortised on a straight-line basis over the average period until the amendedbenefitsbecomevested.

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(l) EmployeeBenefits(Continued)

(iii) Defined benefit plans (Continued)

The amount recognised in the statement of financial position represents the presentvalue of the defined benefit obligations adjusted for unrecognised actuarial gains andlossesandunrecognisedpastservicecosts.Anyassetresultingfromthiscalculationislimitedtothenettotalofanyunrecognisedactuariallossesandpastservicecosts,andthepresentvalueofanyeconomicbenefitsintheformofrefundsorreductionsinfuturecontributionstotheplan.

(m) DeferredLiabilities

Fees received from third parties as advance payments of futuremaintenance expenditure,in consideration for right-of-way access granted by the Group, are classified as deferredliabilities.Deferredliabilitiesareamortisedovertheperiodoftheindividualcontracts.

(n) ForeignCurrencies

(i) Functional and Presentation Currency

The individual financial statements of each entity in the Group aremeasured usingthe currency of the primary economic environment inwhich the entity operates (“thefunctional currency”). The consolidated financial statements are presented in RinggitMalaysia(“RM”),whichisalsotheCompany’sfunctionalcurrency.

(ii) Foreign Currency Transactions

Inpreparingthefinancialstatementsoftheindividualentities,transactionsincurrenciesother than the entity’s functional currency (“foreign currencies”) are recorded in thefunctionalcurrenciesusingtheexchangeratesprevailingatthedatesofthetransactions.Ateachreportingdate,monetaryitemsdenominatedinforeigncurrenciesareretranslatedat theratesprevailingon thereportingdate.Non-monetary itemscarriedat fair valuethat are denominated in foreign currencies are retranslated at the rates prevailing onthedatewhenthefairvaluewasdetermined.Non-monetaryitemsthataremeasuredintermsofhistoricalcostinaforeigncurrencyarenotretranslated.

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(n) ForeignCurrencies(Continued)

(ii) Foreign Currency Transactions (Continued)

Exchangedifferencesarisingonthesettlementofmonetaryitems,andonthetranslationofmonetary items, are included in the income statement for the period except forexchange differences arising onmonetary items that form part of the Group’s netinvestment in foreign operation. Exchange differences arising onmonetary items thatformpartof theGroup’snet investment in foreignoperationare initially takendirectlytotheforeigncurrencytranslationreservewithinequityuntilthedisposaloftheforeignoperations,atwhichtimetheyarerecognisedintheincomestatements.

Exchange differences arising onmonetary items that form part of the Company’s netinvestment in foreign operation, regardless of the currency of themonetary item, arerecognisedinincomestatementsintheCompany’sfinancialstatementsortheindividualfinancialstatementsoftheforeignoperation,asappropriate.

(iii) Foreign Operations

Theresultsandfinancialpositionof foreignoperations thathavea functionalcurrencydifferent from thepresentation currency (RM) of the consolidatedfinancial statementsaretranslatedintoRMasfollows:

– Assets and liabilities for each statements of financial position presented aretranslatedattheclosingrateprevailingatthereportingdate;

– Income and expenses for each income statements are translated at averageexchangeratesfortheyear,whichapproximatestheexchangeratesatthedatesofthetransactions;and

– All resulting exchange differences are taken to the foreign currency translationreservewithinequity.

Goodwilland fairvalueadjustmentsarisingon theacquisitionof foreignoperationsonorafter1January2006aretreatedasassetsandliabilitiesoftheforeignoperationsandare recorded in the functionalcurrencyof the foreignoperationsand translatedat theclosing rateat the reportingdate.Goodwilland fair valueadjustmentswhicharoseontheacquisitionof foreign subsidiariesbefore 1 January 2006aredeemed tobeassetsand liabilitiesof theparentcompanyandarerecorded inRMat theratesprevailingatthedateofacquisition.

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(o) Inventories

Inventoriesarevaluedatthelowerofcostandnetrealisablevalue.Costisdeterminedontheweighted average basis and comprises all expenditure incurred in bringing the inventoriesto theirpresent locationandcondition. Inarrivingatnet realisablevalue,dueallowance ismadeforallobsoleteandslowmovingitems.

(p) StatementsofCashFlows

Thestatementsofcashflows,whichispreparedusingthedirectmethod,classifieschangesin cash and cash equivalents according to operating, investing and financing activities.TheGroup does not consider any of its assets other than depositswith licensed financialinstitutionsandcashandbankbalancestomeetthedefinitionofcashandcashequivalents.The use of the cash and cash equivalents in the subsidiaries, however, is subject to therestrictionssetoutinNotes28,34and37.

(q) RevenueRecognition

Revenue is recognisedwhen it is probable that the economic benefits associatedwith thetransactionwillflowtotheenterpriseandtheamountofrevenuecanbemeasuredreliably.

(i) Toll Revenue

Toll revenue is accounted for as and when toll is chargeable for the usage of theexpressways.

(ii) Investment Income

Investment income is recognised when the right to receive is established and nosignificantuncertaintyexistsasregardtoitsrecovery.

(iii) Revenue from Services

Revenue from services rendered is recognised net of service taxes if applicable, anddiscountsasandwhentheservicesareperformed.

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(q) RevenueRecognition(Continued)

(iv) Toll Compensation

PursuanttotherelevantConcessionAgreements,theGovernmentofMalaysiareservestherighttorestructureortorestricttheimpositionofunittollrateincreases,andinsuchevent, theGovernmentshallcompensate therelevantconcessionaire forany reductionin toll revenue, subject to negotiation and other considerations that the Governmentmaydeemfit.Toll compensation foranyconcessionyear is recognised in thefinancialstatementsasrevenuewhenrecoveryisprobableandtheamountthatisrecoverablecanbemeasured reliably.Theamountof toll compensationaccruedand recognised in theincomestatements for theyearhasbeenestimatedafter taking intoconsideration theeffectsofthearrangementsdescribedinNote3(i)(b)andNote3(ii)(b).

(v) Interest Income/Profit Element

Interestincome/profitelementisrecognisedonatimeproportionbasisthatreflectstheeffectiveyieldontheasset.

(vi) Dividend Income

Dividendincomeisrecognisedwhentherighttoreceivepaymentisestablished.

(vii) Revenue on Award Credits

Revenueonawardcreditsisrecognisedbasedonthenumberofawardcreditsthathavebeenredeemedinexchangefortollrebates,relativetothetotalnumberofawardscreditexpectedtoberedeemed.

(viii) Revenue from Contract Jobs

Revenue on fixed price contract jobs are recognised in the income statements on thepercentage of completionmethod based on the proportionate value of work done onthe projectswhich is the cost incurred to date over the total expected costs for thatcontract.

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(r) FinancialAssets

Financialassetsarerecognisedinthestatementsoffinancialpositionwhen,andonlywhen,the Group and the Company become a party to the contractual provisions of the financialinstrument.

Whenfinancial assetsare recognised initially, theyaremeasuredat fair value,plus, in thecaseoffinancialassetsnotatfairvaluethroughprofitorloss,directlyattributabletransactioncosts.

Afinancialasset isderecognisedwhenthecontractualright toreceivecashflowsfromtheassethasexpired.Onderecognitionofafinancialassetinitsentirety,thedifferencebetweenthecarryingamountand thesumof theconsiderationreceivedandanycumulativegainorloss that had been recognised in other comprenhensive income is recognised in profit orloss.

TheGroup and theCompany determine the classification of their financial assets at initialrecognition, and the categories includefinancial assets at fair value throughprofit or loss,loansandreceivables,held-to-maturityinvestmentsandavailable-for-salefinancialassets.

Financial assets at fair value through profit or loss

Financialassetsareclassifiedasfinancialassetsat fairvalue throughprofitor loss if theyareheldfortradingoraredesignatedassuchuponinitialrecognition.Financialassetsheldfor trading are derivatives (including separated embedded derivatives) or financial assetsacquiredprincipallyforthepurposeofsellinginthenearterm.

Subsequent to initial recognition, financial assets at fair value through profit or loss aremeasuredatfairvalue.Anygainsorlossesarisingfromchangesinfairvaluearerecognisedinprofitorloss.Netgainsornetlossesonfinancialassetsatfairvaluethroughprofitorlossdo not include exchange differences, interest and dividend income. Exchange differences,interest and dividend income on financial assets at fair value through profit or loss arerecognisedseparatelyinprofitorlossaspartofotherlossesorotherincome.

Financial assets at fair value throughprofit or loss could be presented as current or non-current.Financialassetsthatisheldprimarilyfortradingpurposesarepresentedascurrentwhereas financial assets that is not held primarily for trading purposes are presented ascurrentornon-currentbasedonthesettlementdate.

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(r) FinancialAssets(Continued)

Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Suchassetsarecarriedatamortisedcostusingtheeffective interestmethod.Gainsand lossesare recognised in incomestatementswhen theloans and receivables are derecognised or impaired, aswell as through the amortisationprocess.

Loansandreceivablesareclassifiedascurrentassets,exceptforthosehavingmaturitydateslaterthan12monthsafterthereportingdatewhichareclassifiedasnon-current.

Held-to-maturity investments

Non-derivativefinancialassetswithfixedordeterminablepaymentsandfixedmaturityareclassifiedasheld-to-maturitywhentheGrouphastheexpressedintentionandabilitytoholdtomaturity.

Investmentsthatareintendedtobeheld-to-maturityaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Amortisedcostiscalculatedbytakingintoaccountany discount or premium on acquisition, over the period tomaturity. For investmentscarried at amortised cost, gains and losses are recognised in income statementwhen theinvestmentsarederecognisedorimpaired,aswellasthroughtheamortisationprocess.

Held-to-maturity investmentsare classifiedasnon-current assets, except for thosehavingmaturitywithin12monthsafterthereportingdatewhichareclassifiedascurrent.

Available-for-sale financial assets

Available-for-sale are financial assets that are designated as available for sale or are notclassifiedinanyofthethreeprecedingcategories.

After initial recognition, available-for-sale financial assets aremeasured at fair value. Anygains or losses from changes in fair value of the financial asset are recognised in othercomprehensive income, except that impairment losses, foreign exchange gains and lossesonmonetary instruments and interest calculated using the effective interestmethod arerecognised in profit or loss. The cumulative gain or loss previously recognised in othercomprehensive income is reclassified from equity to profit or loss as a reclassificationadjustmentwhen the financial asset is derecognised. Interest income calculated using theeffective interestmethod is recognised in profit or loss.Dividends on an available-for-saleequity instrumentarerecognised inprofitor losswhen theGroupand theCompany’srighttoreceivepaymentisestablished.

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(r) FinancialAssets(Continued)

Available-for-sale financial assets

Investments in equity instruments whose fair value cannot be reliably measured aremeasuredatcostlessimpairmentloss.

Available-for-sale financial assets are classified as non-current assets unless they areexpectedtoberealisedwithin12monthsafterthereportingdate.

(s) ImpairmentofFinancialAssets

TheGroup and theCompany assess at each reporting datewhether there is any objectiveevidencethatafinancialassetisimpaired.

(i) Receivables and other financial assets carried at amortised cost

Todeterminewhether there isobjectiveevidence thatan impairment lossonfinancialassets has been incurred, the Group and the Company consider factors such as theprobabilityof insolvencyorsignificantfinancialdifficultiesof thedebtoranddefaultorsignificant delay in payments. If any such evidence exists, the amount of impairmentlossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset’soriginaleffectiveinterestrate.Theimpairmentlossisrecognisedinprofitorloss.

The carrying amount of the financial asset is reduced by the impairment loss directlyfor all financial assetswith the exception of receivables,where the carrying amountis reduced through the use of an allowance account. When a receivable becomesuncollectible,itiswrittenoffagainsttheallowanceaccount.

Ifinasubsequentperiod,theamountoftheimpairmentlossdecreasesandthedecreasecan be related objectively to an event occurring after the impairmentwas recognised,the previously recognised impairment loss is reversed to the extent that the carryingamountoftheassetdoesnotexceeditsamortisedcostatthereversaldate.Theamountofreversalisrecognisedinprofitorloss.

(ii) Toll compensation recoverable from the Government

TollcompensationrecoverablefromtheGovernmentiscarriedatanticipatedrealisablevalueaftertaking intoconsiderationtheeffectsofthearrangementsdescribedinNote3. An assessment of the recoverability of the amount is performed annually basedon estimated recoverable amount pursuant to the settlement arrangement as setout inNote 3. Please seeNote 4.2(q)(iv) for the recognition of toll compensation. Anyimpairmentlossisrecognisedinprofitorloss.

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(s) ImpairmentofFinancialAssets(Continued)

(iii) Unquoted equity securities at cost

If there is objective evidence (such as significant adverse changes in the businessenvironmentwheretheissueroperates,probabilityofinsolvencyorsignificantfinancialdifficultiesoftheissuer)thatanimpairmentlossonfinancialassetscarriedatcosthasbeenincurred,theamountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthecurrentmarketrateofreturnforasimilarfinancialasset.Suchimpairmentlossesarenotreversedinsubsequentperiods.

(iv) Available-for-sale financial assets

Significantorprolongeddeclineinfairvaluebelowcost,significantfinancialdifficultiesoftheissuerorobligor,andthedisappearanceofanactivetradingmarketareconsiderationstodeterminewhetherthereisobjectiveevidencethatinvestmentsecuritiesclassifiedasavailable-for-salefinancialassetsareimpaired.

Ifanavailable-for-salefinancialassetisimpaired,anamountcomprisingthedifferencebetween its cost (net of any principal payment and amortisation) and its current fairvalue, less any impairment loss previously recognised in profit or loss, is transferredfromequitytoprofitorloss.

Impairmentlossesonavailable-for-saleequityinvestmentsarenotreversedinprofitorlossinthesubsequentperiods.Increaseinfairvalue,ifany,subsequenttoimpairmentlossis recognised inothercomprehensive income.Foravailable-for-saledebt investments,impairment losses are subsequently reversed in profit or loss if an increase in thefair value of the investment can be objectively related to an event occurring after therecognitionoftheimpairmentlossinprofitorloss.

(t) FinancialLiabilities

Financialliabilitiesareclassifiedaccordingtothesubstanceofthecontractualarrangementsentered intoand thedefinitionsof afinancial liability. Financial liabilities,within the scopeof FRS 139 Financial Instruments: Recognition and Measurement, are recognised in thestatementsoffinancialpositionwhen,andonlywhen,theGroupandtheCompanybecomeapartytothecontractualprovisionsofthefinancialinstrument.

A financial liability is derecognisedwhen the obligationunder the liability is dischargedorcancelledorexpires.

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(t) FinancialLiabilities(Continued)

Where an existing financial liability is replaced by another from the same lender onsubstantiallydifferent terms,or thetermsofanexisting liabilityaresubstantiallymodified,such an exchange ormodification is treated as a derecognition of the original liability andthe recognition of a new liability, and the difference in the respective carrying amounts isrecognisedinincomestatements.

Financial liabilitiesareclassifiedaseitherfinancial liabilitiesat fairvalue throughprofitorlossorotherfinancialliabilities.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held fortrading and financial liabilities designated upon initial recognition as at fair value throughprofitorloss.

Financial liabilities held for trading include derivatives entered into by the Group and theCompany that do notmeet the hedge accounting criteria. Derivative liabilities are initiallymeasured at fair value and subsequently stated at fair value, with any resultant gains orlosses recognised in profit or loss. Net gains or losses on derivatives include exchangedifferences.

The Group and the Company have not designated any financial liabilities as at fair valuethroughprofitorloss.

Other financial liabilities

The Group’s and the Company’s other financial liabilities include trade payables, otherpayablesandloansandborrowings.

Trade and other payables are recognised initially at fair value plus directly attributabletransactioncostsandsubsequentlymeasuredatamortisedcostusingtheeffective interestmethod.

Loansandborrowingsarerecognisedinitiallyatfairvalue,netoftransactioncostsincurred,andsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.Borrowingsare classified as current liabilities unless the Group has an unconditional right to defersettlementoftheliabilityforatleast12monthsafterthereportingdate.

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(t) FinancialLiabilities(Continued)

Other financial liabilities (Continued)

For other financial liabilities, gains and losses are recognised in profit or losswhen theliabilities are derecognised, and through the amortisation process.Details of certain loansandborrowingsoftheGroupareasfollows:

(i) Bai’ Bithaman Ajil Islamic Debt Securities (“BAIDS”)

The BAIDS are bonds issued in accordancewith the Islamic finance concept of Bai’BithamanAjil.Inaccordancewithsuchconcept,theissuerassignedcertainassetstoatrustee,andrepurchasedthematthesamepricetogetherwithanagreedprofitmargin.ThepaymentofthepurchasepriceisdeferredinaccordancewiththematuritiesoftheBAIDS,whilsttheprofitelementispaidhalf-yearly.

BAIDSareinitiallyrecognisedatcost,beingthefairvalueoftheconsiderationreceived.After initial recognition, the profit element attributable to theBAIDS in each period isrecognisedasanexpenseataconstantratetothematurityofeachseriesrespectively.

(ii) Sukuk Musyarakah with periodic payments

The SukukMusyarakah (“Sukuk”)with periodic payments is issued under the IslamicprincipleofMusyarakahwhichisacontractofpartnershipinaventure.

TheSukuk is initially statedat cost, being the fair valueof the consideration received.After initial recognition, the profit element attributable to the Sukuk in each period isrecognisedasanexpenseataconstantratetoitsmaturity.

(iii) Sukuk Musyarakah without periodic payments

TheSukukwithoutperiodicpaymentsisissuedundertheIslamicprincipleofMusyarakahwhichisacontractofpartnershipinaventure.

TheSukuk is initially statedat cost, being the fair valueof the consideration received.The profit elements on the Sukuk are recognised as an expense and accreted to theprincipalamountataconstantratetoitsmaturity.

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(u) AmountreceivedfromtheGovernmentforAdditionalWorks

Pursuant to the TSCA,monies received from the Government for the AdditionalWorks,are classified as “Amount received from the Government for AdditionalWorks”.With theexecutionoftheProceedsAccountAgreementon17November2006,theexpensesincurredfortheAdditionalWorkshavebeenoffsetagainsttheamountreceivedfromtheGovernmentasdisclosedinNote41.

(v) BorrowingCosts

Borrowing costs directly attributable to the acquisition, construction or production ofqualifyingassets,whichareassets thatnecessarily takeasubstantialperiodof timetogetreadyfortheirintendeduseorsale,arecapitalisedaspartofthecostofthoseassets,untilsuch timeas theassetsaresubstantially ready for their intendeduseorsale.Theamountofborrowingcostseligible for capitalisation isdeterminedbyapplyinga capitalisation ratewhichistheweightedaverageoftheborrowingcostsapplicabletotheCompanyborrowingsthatareoutstandingduringtheyear,otherthanborrowingsmadespecificallyforthepurposeof obtaining another qualifying asset. For borrowingsmade specifically for the purpose ofobtaining a qualifying asset, the amount of borrowing cost eligible for capitalisation is theactual borrowing costs incurred on that borrowing during the period less any investmentincomeonthetemporaryinvestmentofthatborrowing.

All other borrowing costs are recognised as an expense in the income statements in theperiodinwhichtheyareincurred.

(w) Non-currentAssetsHeldforSale

Non-current assets or disposal groups are classified as held for sale if theymeet certainconditionsandtheircarryingamountswillberecoveredprincipallythroughasaletransactionratherthanthroughcountinuinguse.Theconditionisregardedasmetonlywhentheassetsordisposalgroupsareavailableforimmediatesaleinitspresentconditionsubjecttotermsthatareusualandcustomaryandthesaleishighlyprobable.

Non-currentassetsordisposalgroupsheld forsalearemeasuredat the lowerofcarryingamount and fair value less costs to sell. Any differences are recognised in the incomestatements.

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(x) EquityInstruments

Ordinary shares are classified as equity. Dividends on ordinary shares are recognised inequityintheperiodinwhichtheyaredeclared.

(y) SegmentReporting

Formanagement purposes, the Group is organised into operating segments based ontheir products and serviceswhich are independentlymanaged by the respective segmentmanagers responsible for theperformanceof the respectivesegmentsunder their charge.The segmentmanagers report directly to themanagement of the Companywho regularlyreviewthesegmentresultsinordertoallocateresourcestothesegmentsandtoassessthesegmentperformance.AdditionaldisclosuresoneachofthesesegmentsareshowninNote48, including the factors used to identify the reportable segments and themeasurementbasisofsegmentinformation.

(z) Contingencies

Acontingent liabilityorasset isapossibleobligationorasset thatarises frompasteventsandwhoseexistencewillbeconfirmedonlybytheoccurrenceornon-occurrenceofuncertainfutureevent(s)notwhollywithinthecontroloftheGroup.

ContingentliabilitiesandassetsarenotrecognisedinthestatementsoffinancialpositionoftheGroup.

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4.3 New Standards and Interpretations that are effective beginning on or after 1 January 2010

On 1 January 2010, the Group and the Company adopted the following applicable new andamended FRSs and IC Interpretationsmandatory for annual financial periods beginning on orafter1January2010.

FRS7 FinancialInstruments:DisclosuresFRS101 PresentationofFinancialStatements(Revised)FRS123 BorrowingCostsFRS139 FinancialInstruments:RecognitionandMeasurementAmendments to FRS 1 First Time Adoption of Financial Reporting Standards and FRS 127

Consolidated and Separate Financial Statements: Cost of an Investment in a Subsidiary,JointlyControlledEntityorAssociate

AmendmentstoFRS132 FinancialInstruments:PresentationAmendments to FRS 139 Financial Instruments: Recognition andMeasurement and FRS 7

Financial Instruments: Disclosures and IC Interpretation 9 Reassessment of EmbeddedDerivatives

AmendmentstoFRSs‘ImprovementstoFRSs(2009)’ICInterpretation9:ReassessmentofEmbeddedDerivativesICInterpretation10:InterimFinancialReportingandImpairmentICInterpretation11:FRS2–GroupandTreasuryShareTransactionsICInterpretation13:CustomerLoyaltyProgrammesIC Interpretation 14: FRS 119 – The Limit on a Defined Benefit Asset, Minimum Funding

RequirementsandtheirInteraction

Adoption of the above standards and interpretations did not have any effect on the financialperformanceorpositionoftheGroupandtheCompanyexceptforthosediscussedbelow:

4.3.1 fRS 7 financial Instruments: disclosures

Prior to 1 January 2010, information about financial instruments was disclosed inaccordancewith the requirements of FRS 132 Financial Instruments: Disclosure and Presentation.FRS7introducesnewdisclosurestoimprovetheinformationaboutfinancialinstruments. Itrequiresthedisclosureofqualitativeandquantitative informationaboutexposure to risks arising from financial instruments, including specifiedminimumdisclosuresaboutcreditrisk,liquidityriskandmarketrisk,includingsensitivityanalysistomarketrisk.

The Group and the Company have applied FRS 7 prospectively in accordance withthe transitional provisions. Hence, the new disclosures have not been applied to thecomparatives. The new disclosures are included throughout the Group’s and theCompany’sfinancialstatementsfortheyearended31December2010.

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4.3 New Standards and Interpretations that are effective beginning on or after 1 January 2010 (continued)

4.3.2 fRS 101 Presentation of financial Statements (Revised)

TherevisedFRS101introduceschangesinthepresentationanddisclosuresoffinancialstatements. The revised Standard separates owner and non-owner changes in equity.Thestatementsofchanges inequity includesonlydetailsof transactionswithowners,with all non-owner changes in equity presented as a single line. The Standard alsointroduces the statements of comprehensive income, with all items of income andexpenserecognisedinprofitorloss,togetherwithallotheritemsofrecognisedincomeandexpenserecogniseddirectlyinequity,eitherinonesinglestatement,orintwolinkedstatements.TheGroupandtheCompanyhaveelectedtopresentintwostatements.

Inaddition,astatementoffinancialpositionisrequiredatthebeginningoftheearliestcomparativeperiodfollowingachangeinaccountingpolicy,thecorrectionofanerrorortheclassificationofitemsinthefinancialstatements.

TherevisedFRS101alsorequires theGrouptomakenewdisclosurestoenableusersofthefinancialstatementstoevaluatetheGroup’sobjectives,policiesandprocessesformanagingcapital.PleaseseeNote46.

TherevisedFRS101wasadoptedretrospectivelybytheGroupandtheCompany.

4.3.3 fRS 139 financial Instruments: Recognition and Measurement

TheGroupandtheCompanyhaveadoptedFRS139prospectivelyon1January2010 inaccordancewith the transitional provisions. As at 1 January 2010, the effects arisingfromtheadoptionofthisStandardhasbeenaccountedforasfollowsandcomparativeswerenotrestated:

(a) Toll compensation recoverable from the Government

PriortotheadoptionofFRS139,tollcompensationrecoverablefromtheGovernmentwasaccruedatcostby theGroupafter taking intoconsideration theeffectsof thetoll compensation arrangement in accordancewith the SSCA as detailed out inNote 3(i)(b). With the adoption of FRS 139, the toll compensation recoverablefromtheGovernment is recorded initiallyat its fair value that is lower thancosts.Subsequenttoinitialrecognition,theamountismeasuredatamortisedcost.Asat1January2010,theGroupremeasuredthetollcompensationrecoverablefromtheGovernment at amortised cost and an adjustment of RM305,969,000 to adjust thepreviouscarryingamountwasrecognisedtoretainedearnings.

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4.3.3 fRS 139 financial Instruments: Recognition and Measurement (continued)

(b) Interest-free non-current amount owing to immediate holding company

PriortotheadoptionofFRS139,theGroup’sinterest-freenon-currentamountdueto immediate holding companywas stated at cost.With the adoption of FRS 139,this interest-free amount ismeasured at amortised cost. As at 1 January 2010,the Group remeasured the amount owing to immediate holding company at itsamortisedcostandtheadjustmenttothepreviouscarryingamountwasrecognisedas an adjustment of RM3,657,000 to other non-distributable reserve as at thatdate.

(c) Interest-free non-current amount owing to/from subsidiaries

PriortotheadoptionofFRS139, theCompany’s interest-freenon-currentamountowing to/fromsubsidiarieswerestatedatcost.With theadoptionofFRS139, thisinterest-free amounts aremeasured at amortised cost. As at 1 January 2010, theCompany remeasured the amount owing to/from its subsidiaries at its amortisedcostand theadjustment to thepreviouscarryingamountwasrecognisedasanetadjustmenttocostofinvestmentinthatsubsidiariesofRM2,485,000.

FurtherdetailsaresetoutinNote4.3.6.

4.3.4 Ic Interpretation 13: customer Loyalty Programmes

The Group adopted IC Interpretation 13 (“IC INT 13”), which became effective on 1January 2010. Pursuant to this IC INT 13, award credits shall be accounted for as aseparately identifiable component of the sales transactions inwhich they are granted(the“initialsale”).Thefairvalueoftheconsiderationreceivedorreceivableinrespectofthe initialsaleshallbeallocatedbetweentheawardcreditsandtheothercomponentsofthesale.

The consideration allocated to the award credits is recognised as a liability (deferredrevenue) in the statements of financial position and recognised as revenuewhen thepointsareredeemed,haveexpiredorarenolongerexpectedtoberedeemed.

Theadoptionof ICINT13doesnothaveanymaterial impacttotheopeningbalanceofretainedearnings,thusnoretrospectiveadjustmentwasmade.Inthecurrentyear,tollrevenuewasreducedbyRM2,434,000withtheadoptionofICINT13.

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4.3.5 Amendments to fRSs ‘Improvements to fRSs (2009)’

Amendments to FRS 117 Leases

Prior to 1 January 2010, for all leases of landandbuildings, if title is not expected topass to the lesseeby the endof the lease term, the lesseenormally doesnot receivesubstantiallyallof therisksandrewards incidental toownership.Hence,all leaseholdland held for own use was classified by the Group as operating lease and wherenecessary,theminimumleasepaymentsortheup-frontpaymentsmadewereallocatedbetween the land and the buildings elements in proportion to the relative fair valuesfor leasehold interests in the land element and buildings element of the lease at theinception of the lease. Theup-front payment representedprepaid leasepayments andwereamortisedonastraight-linebasisovertheleaseterm.

The amendments to FRS 117 Leases clarify that leases of land and buildings areclassifiedasoperatingorfinanceleasesinthesamewayasleasesofotherassets.Theyalsoclarifythatthepresentvalueoftheresidualvalueofthepropertyinaleasewithatermofseveraldecadeswouldbenegligibleandaccounting for the landelementasafinancelease insuchcircumstanceswouldbeconsistentwiththeeconomicpositionofthe lessee.Hence, theadoptionof theamendmentstoFRS117hasresulted incertainunexpiredlandleasestobereclassifiedasfinanceleases.

The Group has reassessed the leasehold land previously disclosed as prepaid landleasepaymentsanddetermined that it is insubstancefinance lease innature.Hence,theleaseholdlandhasbeenreclassifiedfromprepaidlandleasepaymentstoproperty,plant and equipmentwithin non-current assets. The change in accounting policy hasbeen adopted retrospectively in accordance with the transitional provisions of theamendmentstoFRS117.

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4.3.5 Amendments to fRSs ‘Improvements to fRSs (2009)’ (continued)

Amendments to FRS 117 Leases (Continued)

The following comparative figures have been restated following the adoption of theamendmentstoFRS117:

Group Company

RM’000 RM’000

Prepaid land lease payments

At31December2009,aspreviouslystated: 26,988 97,618

– Reclassificationtoproperty,plantandequipment (26,988) (97,618)

At31December2009,asrestated – –

At1January2009,aspreviouslystated: 27,269 98,635

– Reclassificationtoproperty,plantandequipment (27,269) (98,635)

At1January2009,asrestated – –

Group Company

RM’000 RM’000

Property, plant and equipment

At31December2009,aspreviouslystated: 49,146 15,297

– Reclassificationfromprepaidlandleasepayments 26,988 97,618

At31December2009,asrestated 76,134 112,915

At1January2009,aspreviouslystated: 47,855 13,682

– Reclassificationfromprepaidlandleasepayments 27,269 98,635

At1January2009,asrestated 75,124 112,317

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4.3.5 Amendments to fRSs ‘Improvements to fRSs (2009)’ (continued)

Amendments to FRS 120 Accounting for Government Grants and Disclosures of Government Assistance

On 1 January 2010, the Group adopted the amendments to FRS 120 Accounting forGovernmentGrantsandDisclosuresofGovernmentAssistance.

TheamendmentstoFRS120removedtheexemptiontoimputeinterestsongovernmentloansatbelowmarketinterestrate.Thedifferencebetweentheamountreceivedandthepresentvalueofestimatedcashflowsdiscountedatmarketinterestrateisaccountedforas government grants. The amendments shall be applied prospectively to governmentloans received on or after 1 January 2010. The Group obtained government loans atbelowmarket interest rate amounting to RM389million prior to 1 January 2010 andhence the amendments to FRS 120 did not have any impact on the Group’s financialstatements.

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4.3.6 Summary of effects arising from the changes in accounting policies

Thefollowingareeffectsarisingfromtheabovechangesinaccountingpolicies:

As at As at As at 31.12.2010 1.1.2010 1.1.2009

RM’000 RM’000 RM’000

Statements of financial positionIncrease/(decrease) in:GroupRetainedearnings (323,243) (305,969) –Otherreserves 3,657 3,657 –Property,plantandequipment – 26,988 27,269Prepaidlandleasepayments – (26,988) (27,269)TollcompensationrecoverablefromtheGovernment (326,373) (305,969) –

Amountowingtoimmediateholdingcompany (3,463) (3,657) –

Deferredrevenue 2,434 – –

CompanyRetainedearnings (675) – –Investmentsinsubsidiaries 2,485 2,485 –Amountowingby/tosubsidiaries (3,385) (2,485) –Property,plantandequipment – 97,618 98,635Prepaidlandleasepayments – (97,618) (98,635)

Group company2010 2010

RM’000 RM’000

Income statementsIncrease/(decrease) in:Revenue (115,643) –Otherincome 92,805 3,282Financecosts 194 4,182Profitbeforetax (23,032) (900)Incometaxexpense (5,758) (225)Profitfortheyear (17,274) (675)

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4.4 Standards issued but not yet effective

TheGrouphasnotadoptedthefollowingapplicablestandardsandinterpretationsthathavebeenissuedbutnotyeteffective:

Effective for financial period beginning on or after 1 July 2010

FRS1 First-timeAdoptionofFinancialReportingStandardsFRS3 BusinessCombinations(Revised)AmendmentstoFRS5 Non-currentAssetsHeldforSaleandDiscontinuedOperationsAmendmentstoFRS127 ConsolidatedandSeparateFinancialStatementsAmendmentstoFRS138 IntangibleAssetsICInterpretation12 ServiceConcessionArrangementsICInterpretation16 HedgesofaNetInvestmentinaForeignOperation

Effective for financial period beginning on or after 1 January 2011

AmendmentstoFRS1 LimitedExemptionfromComparativeFRS7DisclosuresforFirst-timeAdopters

AmendmentstoFRS7 ImprovingDisclosuresaboutFinancialInstrumentsICInterpretation4 DeterminingWhetherAnArrangementcontainsaLease

ExceptforthechangesinaccountingpoliciesarisingfromtheadoptionoftherevisedFRS3,theamendmentstoFRS127andICInterpretation12aswellasthenewdisclosuresrequiredunderthe Amendments to FRS 7, theDirectors expect that the adoption of the other standards andinterpretations abovewill have nomaterial impact on the financial statements in the period ofinitialapplication.Thenatureof the impendingchanges inaccountingpolicyonadoptionof therevisedFRS3,theamendmentstoFRS127andICInterpretation12aredescribedbelow.

Revised fRS 3 Business Combinations and Amendments to fRS 127 Consolidated and Separate financial Statements

The revised standards are effective for annual periods beginning on or after 1 July 2010. Therevised FRS 3 introduces a number of changes in the accounting for business combinationsoccurring after 1 July 2010. These changes will impact the amount of goodwill recognised,the reported results in the period that an acquisition occurs, and future reported results. TheAmendmentstoFRS127requirethatachangeintheownershipinterestofasubsidiary(withoutloss of control) is accounted for as an equity transaction. Therefore, such transactionswill nolongergiverisetogoodwill,norwill theygiverisetoagainor loss.Furthermore, theamendedstandard changes the accounting for losses incurred by the subsidiary aswell as the loss ofcontrolofasubsidiary.OtherconsequentialamendmentshavebeenmadetoFRS107Statement of Cash Flows,FRS112 Income Taxes,FRS121The Effects of Changes in Foreign Exchange Rates,FRS 128 Investments in Associates and FRS 131 Interests in Joint Ventures. The changes fromrevisedFRS3andAmendmentstoFRS127willaffect futureacquisitionsor lossofcontrolandtransactionswithminorityinterests.

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4.4 Standards issued but not yet effective (continued)

IC Interpretation 12: Service Concession Arrangements

This Interpretationapplies toserviceconcessionoperatorsandexplainshow toaccount for theobligations undertaken and rights received in service concession arrangements. The adoptionof IC Interpretation12will likelyhave impact to thefinancialstatementand theGroup is in theprocessofassessing theextentof the impact.However, theGroup isexempted fromdisclosingthepossibleimpacttothefinancialstatementsupontheinitialapplicationofthisInterpretation.

The Group and the Company plans to adopt the above pronouncements when they becomeeffectiveintherespectivefinancialperiod.

4.5 key Sources of Estimation Uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty atthereportingdate, thathaveasignificant riskofcausingamaterialadjustment to thecarryingamountsofassetsandliabilitieswithinthenextfinancialyeararediscussedbelow.

(i) Amortisation of heavy repairs and other concession assets

Thecostofheavyrepairsandotherconcessionassetsareamortisedonastraight-linebasisover their useful lives over 7 to 10 years. These are common life expectancies applied inthe industry.Changes in theexpected levelofusageand technologicaldevelopmentscouldimpact the economic useful lives and the residual values of these assets, therefore futuredepreciationchargescouldberevised.

(ii) Amortisation of EDE

The cost of EDE is amortised over the concession period by applying the formula inNote4.2(g)(i) above. The denominator of the formula includes projected total toll revenue forsubsequentyearstotheendofconcessionperiodand isbasedonthelatestavailablebasecase traffic volume projections prepared by independent traffic consultantsmultiplied bytherelevant tollrates.Theassumptionstoarriveat thetrafficvolumeprojectionstake intoconsiderationthegrowthratebasedoncurrentmarketandeconomicalconditions.Changesintheexpectedtrafficvolumecouldimpactfutureamortisationcharges.

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4.5 key Sources of Estimation Uncertainty (continued)

(iii) Income taxes

Judgement is involved in determining the provision for income taxes. There are certaintransactionsandcomputationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.TheGrouprecognisesliabilitiesforexpectedtaxissuesbasedonestimatesofwhetheradditional taxeswillbedue.Where thefinal taxoutcomeof thesematters is different from the amounts thatwere initially recognised, such differenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.Thecarryingamountoftaxationanddeferredtaxationatreportingdateisdisclosedinthestatementsoffinancialposition.

(iv) Toll Compensation Recoverable from Government

Profit projections are used in determining adequacy of the future income tax payable forset-off against Toll Compensation Recoverable from Government as at reporting date.Profit projections aredependent on various assumptionsamongst others traffic volumeasmentionedinNote4.5(ii)above.TherearealsojudgementinvolvedindeterminingtheamountrecoverableforsetoffagainstNote4.5(iii)above.ThecarryingamountofTollCompensationRecoverable fromGovernment at reporting date is disclosed in the statements of financialposition.

(v) Contract Accounting

TheGroup recognises contract revenue and expenses in the income statements using thepercentage of completionmethod. The percentage of completion is determined by theproportionofcostsincurredfortheworkperformedtodateovertheestimatedtotalcosts.

Significantjudgementisrequiredindeterminingthepercentageofcompletion,theextentofthecostsincurredandtheestimatedtotalrevenueandcosts,aswellasrecoverabilityofthecontracts.Inmakingthejudgement,theGroupevaluatesbasedonpastexperience,externaleconomicfactorsandbyrelyingontheworkofspecialists.

TherevenueandcostsrecognisedinthecurrentyearisasdisclosedinNote17.

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5 REvENUE

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Tollrevenue 2,573,345 2,365,960 – –

Tollcompensationrevenue 885,332 813,062 – –

Less:Fairvalueadjustmentontollcompensationrevenuefortheyear (113,209) – – –

772,123 813,062 – –

Less:AccrualforGovernment’sshareoftollrevenue (13,256) – – –

Nettollrevenue 3,332,212 3,179,022 – –

Expresswayoperationservicefees – – 109,106 105,607

Dividendincomefromasubsidiary – – 485,000 825,000

Otherrevenues 19,269 – – –

3,351,481 3,179,022 594,106 930,607

Tollcompensationrevenuearosefromrevisions intollratestructuresasdescribed inNote2(a)andNotes3(i)to3(iv).

As referred to in Note 3(i)(b), the notional tax on tax exempt dividends is computed based ontaxexemptdividenddeclaredbyPLUS.There isnonotional taxon taxexemptdividend for theyear2010and2009asPLUSdidnotpayanydividendfromitstaxexemptaccountinbothyears.

BasedonthetermsofPLUS’sSCA,thetollrevenueearnedduringtheyearismorethanthethresholdtoll revenueandas suchanaccrualwasmade for theGovernment’s shareof toll revenueofRM13million(2009:RMNilastollrevenueearnedwaslessthanthethresholdtollrevenue).

OtherrevenuesarecontributedbyPHSwhichcommencedoperation inJune2010andTERASwhichwasacquiredbytheCompanyon15June2010.

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Otherincomecomprisesthefollowing:

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Incomefromrentaloffacilities 19,224 22,919 – –

Incomefromrentaloffibreoptictelecommunicationssystemandwayleaverights 17,592 16,754 – –

ProfitelementfromIslamicshorttermdeposits 75,463 61,546 152 527

Interestincomefromshorttermdeposits 13,309 12,629 4,979 4,419

Interestincomearisingfromcumulativefairvalueadjustmentsoffinancialassets 92,805 – 3,282 –

Others 25,665 20,885 1,558 1,673

244,058 134,733 9,971 6,619

7 fINANcE cOSTS

Financecostsfortheyearareasfollows:

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

ProfitelementsonIslamicfinancialliabilities 613,245 604,767 87,860 78,576

Interestexpensearisingfromcumulativefairvalueadjustmentsoffinancialliabilities 194 – 4,182 –

Otherinterestexpense 137,858 95,421 – 2,661

751,297 700,188 92,042 81,237

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8 PROfIT bEfORE TAX

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Profitbeforetaxisarrivedataftercharging/(crediting):

Auditors’remuneration

–statutoryauditfee 537 515 60 60

–otherservicesfee 458 539 232 149

Depreciationofproperty,plantandequipment(Note16) 7,023 5,742 3,943 3,386

Property,plantandequipmentwrittenoff(Note16) 60 111 1 39

Lossondisposalofproperty,plantandequipment 13 122 14 291

Amortisationchargeforconcessionassets(Note15) 423,597 402,948 – –

Amortisationchargeforintangibleassets(Note18) 1,369 1,649 872 751

Netbookvalueofheavyrepairswrittenoff(Note15) – 9,732 – –

Directors’remuneration(Note10) 2,342 2,222 1,650 1,485

Provisionforretirementbenefits(Note38) 1,930 1,803 – –

Rentalofequipment 886 536 76 134

Rentalofpremises 613 217 205 218

Employeecosts(Note9) 207,077 176,294 77,370 67,573

Negativegoodwillonacquisitionofsubsidiaries(Note19(b)) (510) – – –

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Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Salaries,wages,bonusandovertime 144,958 127,218 56,020 49,427

Contributionstodefinedcontributionplan 17,786 16,580 7,459 7,130

Socialsecuritycontributions 1,939 1,769 629 563

Otheremployeeemoluments/overheads 27,871 24,435 8,130 7,538

Trainingandwelfare 14,523 6,292 5,132 2,915

207,077 176,294 77,370 67,573

10 dIREcTORS’ REMUNERATION

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Executive:

Salaries,bonusandotheremoluments 1,281 1,271 972 808

Benefits-in-kind 169 94 77 79

Non-Executive:

Fees 554 576 389 399

Otheremoluments 229 177 160 118

Director’sremunerationpaidandpayabletothirdparty – 34 – 34

Director’sremunerationpaidandpayabletoimmediateholdingcompany 91 70 52 47

Director’sremunerationpaidandpayabletorelatedcompany 18 – – –

2,342 2,222 1,650 1,485

11 kEY MANAGEMENT PERSONNEL REMUNERATION

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Shorttermbenefits 7,710 6,774 4,759 4,987

Keymanagement personnel is defined as the persons who have authority and responsibility forplanning, directing and controlling the activities of the Company or the Group either directly orindirectly.

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12 INcOME TAX EXPENSE

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Incometax:

Malaysianincometax 334,968 21,051 905 5,560

Foreignincometax 8 – 8 –

Overprovisioninprioryears (16,255) (18) (16,317) –

Subtotal 318,721 21,033 (15,404) 5,560

Deferredtax:

Relatingtooriginationandreversaloftemporarydifferences 156,565 430,906 200 (3,195)

Under/(Over)provisioninprioryears 895 (13,479) 6,504 203

Subtotal 157,460 417,427 6,704 (2,992)

Total 476,181 438,460 (8,700) 2,568

Thereconciliationofthetaxeffectsofaccountingandtaxableincomeareasfollows:

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Profitbeforetax 1,776,965 1,623,572 388,046 745,337

Taxatapplicablestatutoryrateof25%(2009:25%) 444,241 405,893 97,012 186,334

Taxeffectofexpensesthatarenotdeductibleindeterminingtaxableprofit 47,915 46,065 25,352 22,281

Taxeffectofincomenotsubjecttotax – – (121,250) (206,250)

Taxeffectofshareofassociate’sprofitaftertax (615) – – –

Overprovisionofincometaxexpenseinprioryears (16,255) (18) (16,317) –

Under/(Over)provisionofdeferredtaxinprioryears 895 (13,479) 6,504 203

Taxexpense 476,181 438,460 (8,700) 2,568

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Basicearningspersharehasbeencalculatedbydividingtheprofitfortheyearattributabletoownersoftheparentbythenumberofordinarysharesinissueduringthefinancialyear.

Group Company

2010 2009 2010 2009

Profitfortheyearattributabletoownersoftheparent(RM’000) 1,306,170 1,186,378 396,746 742,769

Numberofordinaryshares(‘000) 5,000,000 5,000,000 5,000,000 5,000,000

Basicearningspershare(sen) 26.12 23.73 7.93 14.86

14 dIvIdENdS

Dividend in respect of year

Dividend recognised in year

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Finalsingletierdividendfortheyearended31December2008of9.5senperordinarysharedeclaredon4June2009andpaidon2July2009 – – – 475,000

Interimsingletierdividendfortheyearended31December2009of6.5senperordinarysharedeclaredon20August2009andpaidon25September2009 – 325,000 – 325,000

Finalsingletierdividendfortheyearended31December2009of10.0senperordinarysharedeclaredon29April2010andpaidon18May2010 – 500,000 500,000 –

Interimsingletierdividendfortheyearended31December2010of7.5senperordinarysharedeclaredon19August2010andpaidon24September2010 375,000 – 375,000 –

375,000 825,000 875,000 800,000

Dividendperordinaryshare(sen) 7.5 16.5

Nofurtherdividendswillbeproposedforshareholders’approvalinrespectofthefinancialyearended31December2010.

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15 cONcESSION ASSETS

Concessionassetsconsistofthefollowing:

– NSE,NKVE,FHR2,andSPDHmaintainedbyPLUS;– NSECLandKLIAExpresswaymaintainedbyELITE;– MSSCmaintainedbyLINKEDUA;– BKEmaintainedbyKLBK;– BKSPHighwayinIndiamaintainedbyPLUSBKSP;– Padalur-TrichyHighwayinIndiamaintainedbyINIPPL;– Cikampek-PalimananHighwayinIndonesiaundertakenbyLMS;and– Cimanggis-CibitungTollRoadinIndonesiaundertakenbyCCTW.

Thebreakdownoftheconcessionassetsaccordingtoexpresswaysareasfollows:

Group2010 Cost

Accumulated amortisation

Net carrying amount

RM’000 RM’000 RM’000

ExpresswayDevelopmentExpenditure(“EDE”)

–NSE,NKVE,FHR2,SPDH 9,791,740 1,455,513 8,336,227

–NSECLandKLIAExpressway 1,799,629 235,164 1,564,465

–MSSC 1,109,832 97,349 1,012,483

–BKE 349,926 83,684 266,242

–BKSPHighway 195,890 4,076 191,814

–Padalur-TrichyHighway 269,742 2,099 267,643

13,516,759 1,877,885 11,638,874

HeavyRepairs

–NSE,NKVE,FHR2,SPDH 1,831,622 1,147,922 683,700

–NSECLandKLIAExpressway 145,906 76,929 68,977

–MSSC 41,429 12,940 28,489

–BKE 3,190 250 2,940

2,022,147 1,238,041 784,106

OtherConcessionAssets

–NSE,NKVE,FHR2,SPDH 522,304 439,884 82,420


–MSSC 36,937 36,472 465

–BKE 18,080 8,407 9,673

661,618 559,666 101,952

CapitalWork-In-Progress

–Cikampek-PalimananHighway 87,573 – 87,573

87,573 – 87,573

Total 16,288,097 3,675,592 12,612,505

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Thebreakdownoftheconcessionassetsaccordingtoexpresswaysareasfollows(Continued):

Group2009 Cost

Accumulated amortisation

Net carrying amount

RM’000 RM’000 RM’000

EDE

–NSE,NKVE,FHR2,SPDH 9,703,961 1,316,924 8,387,037

–NSECLandKLIAExpressway 1,792,888 182,899 1,609,989

–MSSC 1,106,152 93,214 1,012,938

–BKE 349,183 65,051 284,132

–BKSPHighway 209,520 7,344 202,176

13,161,704 1,665,432 11,496,272

HeavyRepairs

–NSE,NKVE,FHR2,SPDH 1,627,683 975,774 651,909


–MSSC 32,265 7,973 24,292

–BKE 565 21 544

1,783,641 1,046,390 737,251

OtherConcessionAssets

–NSE,NKVE,FHR2,SPDH 508,388 426,452 81,936


–MSSC 36,472 36,472 –

–BKE 17,687 6,634 11,053

646,005 540,540 105,465

CapitalWork-In-Progress

–Cikampek-PalimananHighway 78,010 – 78,010

–Cimanggis-CibitungTollRoad 518 – 518

78,528 – 78,528

Total 15,669,878 3,252,362 12,417,516

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15 cONcESSION ASSETS (cONTINUEd)

DetailsofConcessionAssetsasat31December2010and31December2009areasfollows:

Group

EDEheavy

Repairs

Other Concession

Assets

Capital Work-In-Progress Total

RM’000 RM’000 RM’000 RM’000 RM’000CostAt1January2010 13,161,704 1,783,641 646,005 78,528 15,669,878Additions 111,261 238,506 15,613 14,379 379,759Acquisitionofsubsidiary(Note19(b)) 275,984 – – – 275,984

Assetsofdisposalgroupclassifiedasheldforsale(Note21) – – – (660) (660)

Translationdifference (32,190) – – (4,674) (36,864)

At31December2010 13,516,759 2,022,147 661,618 87,573 16,288,097

Accumulated AmortisationAt1January2010 1,665,432 1,046,390 540,540 – 3,252,362Chargefortheyear 212,820 191,651 19,126 – 423,597Acquisitionofsubsidiary(Note19(b)) 11 – – – 11

Translationdifference (378) – – – (378)

At31December2010 1,877,885 1,238,041 559,666 – 3,675,592

NetBookValueat31December2010 11,638,874 784,106 101,952 87,573 12,612,505

CostAt1January2009 12,796,324 1,583,973 625,827 232,065 15,238,189Additions 181,884 217,644 20,178 15,428 435,134Reclassification 183,496 – – (183,496) –Writtenoff – (17,976) – – (17,976)Translationdifference – – – 14,531 14,531

At31December2009 13,161,704 1,783,641 646,005 78,528 15,669,878

Accumulated AmortisationAt1January2009 1,467,294 875,334 515,030 – 2,857,658Chargefortheyear 198,138 179,300 25,510 – 402,948Writtenoff – (8,244) – – (8,244)

At31December2009 1,665,432 1,046,390 540,540 – 3,252,362

NetBookValueat31December2009 11,496,272 737,251 105,465 78,528 12,417,516

Interest expense capitalised during the financial year under CapitalWork-In-Progress amounted toRM6,691,782(2009:RM16,672,311).

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Group furniture, fittings,

Telecom-munication

and Office Equipment Aircrafts

Motor Vehicles Computers

Operation Tools and

Equipment Buildingsfreehold

LandLeasehold

Land Total

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1January2010 28,007 31,237 30,091 21,075 3,089 4,253 279 30,174 148,205

Additions 1,753 – 6,617 2,065 53 – – – 10,488

Acquisitionsofsubsidiaries(Note19(b)) 2,427 – 1,576 5,317 – – 40 – 9,360

Disposals (612) – (155) (152) – – – – (919)

Writtenoff (82) – (305) (207) – – – – (594)

Translationdifference (37) – (100) (9) – (14) (1) – (161)

At31December2010 31,456 31,237 37,724 28,089 3,142 4,239 318 30,174 166,379

Accumulated Depreciation

At1January2010 21,321 13,385 12,113 17,830 3,034 1,202 – 3,186 72,071

Chargefortheyear 2,408 27 2,477 1,720 30 80 – 281 7,023

Acquisitionsofsubsidiaries(Note19(b)) 1,509 – 1,215 4,415 – – – – 7,139

Disposals (598) – (105) (146) – – – – (849)

Writtenoff (81) – (247) (206) – – – – (534)

Translationdifference (14) – (71) (4) – (13) – – (102)

At31December2010 24,545 13,412 15,382 23,609 3,064 1,269 – 3,467 84,748

NetBookValueat31December2010 6,911 17,825 22,342 4,480 78 2,970 318 26,707 81,631

16 PROPERTY, PLANT ANd EQUIPMENT

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Group furniture, fittings,

Telecom-munication

and Office Equipment Aircrafts

Motor Vehicles Computers

Operation Tools and

Equipment Buildingsfreehold

LandLeasehold

Land Total

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1January2009(restated) 24,805 31,237 29,778 19,848 3,083 4,224 279 30,174 143,428

Additions 3,202 – 2,442 1,846 17 – – – 7,507

Disposals – – (2,052) (6) – – – – (2,058)

Writtenoff (28) – (120) (621) (11) – – – (780)

Translationdifference 28 – 43 8 – 29 – – 108

At31December2009(restated) 28,007 31,237 30,091 21,075 3,089 4,253 279 30,174 148,205


At1January2009(restated) 19,545 13,359 11,930 16,723 2,772 1,070 – 2,905 68,304

Chargefortheyear 1,784 26 1,574 1,698 272 107 – 281 5,742

Disposals – – (1,355) (5) – – – – (1,360)

Writtenoff (19) – (51) (589) (10) – – – (669)

Translationdifference 11 – 15 3 – 25 – – 54

At31December2009(restated) 21,321 13,385 12,113 17,830 3,034 1,202 – 3,186 72,071

NetBookValueat31December2009(restated) 6,686 17,852 17,978 3,245 55 3,051 279 26,988 76,134

16 PROPERTY, PLANT ANd EQUIPMENT (cONTINUEd)

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Company furniture, fittings,Telecommunication and

Office EquipmentMotor

Vehicles Computers

Operation Tools and

EquipmentLeasehold

Land Total

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost

At1January2010 4,589 14,531 7,158 792 100,669 127,738

Additions 413 4,081 1,162 – – 5,656

Disposals – (96) – – – (96)

Writtenoff (26) – – – – (26)

At31December2010 4,976 18,516 8,320 792 100,669 133,272


At1January2010 1,466 4,249 5,285 772 3,051 14,823

Chargefortheyear 811 1,258 849 8 1,017 3,943

Disposals – (46) – – – (46)

Writtenoff (25) – – – – (25)

At31December2010 2,252 5,461 6,134 780 4,068 18,695

NetBookValueat31December2010 2,724 13,055 2,186 12 96,601 114,577

Cost

At1January2009(restated) 2,583 13,838 6,696 522 100,669 124,308

Additions 2,015 1,288 1,082 10 – 4,394

Disposals – (595) – – – (595)

Writtenoff (9) – (620) – – (629)

Reclassification – – – 260 – 260

At31December2009(restated) 4,589 14,531 7,158 792 100,669 127,738


At1January2009(restated) 691 3,845 5,013 408 2,034 11,991

Chargefortheyear 779 628 858 104 1,017 3,386

Disposals – (224) – – – (224)

Writtenoff (4) – (586) – – (590)

Reclassification – – – 260 – 260

At31December2009(restated) 1,466 4,249 5,285 772 3,051 14,823

NetBookValueat31December2009(restated) 3,123 10,282 1,873 20 97,618 112,915

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17 AMOUNT dUE fROM/(TO) cUSTOMERS ON cONTRAcTS

Group

2010 2009

RM’000 RM’000

Costsincurredtodate 124,069 –

Add:Attributableprofits 53,744 –

177,813 –

Less:Progressbillings (161,258) –

16,555 –

Presentedasfollows:

Grossamountduefromcustomersoncontractwork 17,629 –

Grossamountduetocustomersoncontractwork (1,074) –

16,555 –

Contractrevenue 37,947 –

Contractcosts 26,646 –

Retentionsumsoncontractincludedintradereceivables 6,880 –

18 INTANGIbLE ASSETS

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Cost

At1January 15,172 13,461 5,390 3,603

Additions 1,828 1,711 1,166 1,787

Acquisitionofsubsidiary(Note19(b)) 163 – – –

Writtenoff (62) – – –

At31December 17,101 15,172 6,556 5,390

Accumulated Amortisation

At1January 11,443 9,794 2,722 1,971

Chargefortheyear 1,369 1,649 872 751

Acquisitionofsubsidiary(Note19(b)) 139 – – –

Writtenoff (62) – – –

At31December 12,889 11,443 3,594 2,722

NetBookValueat1January 3,729 3,667 2,668 1,632

NetBookValueat31December 4,212 3,729 2,962 2,668

Intangibleassetsconsistsofcomputersoftwareandlicensesthatdonotformanintegralpartoftherelatedhardwares.

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Company

2010 2009

RM’000 RM’000

Unquotedsharesatcost–InMalaysia 2,010,122 2,166,122

Unquotedsharesatcost–OutsideMalaysia 192,215 133,879

2,202,337 2,300,001

Fairvalueadjustmentonamountdueto/fromsubsidiaries(Note4.3.3(c)) 2,485 –

2,204,822 2,300,001

Thesubsidiariesareasfollows:

Effective Equity Interest

Name Principal Activity 2010 2009

Subsidiaries of PEB

IncorporatedinMalaysia

ProjekLebuhrayaUtara-SelatanBerhad

Undertake the construction, operation,maintenance and toll collection of NSE,NKVE,FHR2,andSPDHwitha total lengthof846kilometres

100% 100%

ExpresswayLingkaranTengahSdnBhd

Undertake the construction, operation,maintenance and toll collection of the63-kilometreNSECLandKLIAExpressway

100% 100%

Linkedua(Malaysia)Berhad

Undertake the construction, operation,maintenance and toll collection of the47-kilometreMSSC

100% 100%

KonsortiumLebuhrayaButterworth-Kulim(KLBK)SdnBhd

Undertake the construction, operation,maintenance and toll collection of the17-kilometreBKE

100% 100%

PLUSHelicopterServicesSdnBhd

Provisionofhelicoptercharterservicesandaerialsurveillanceofexpressways

100% 100%

TerasTeknologiSdnBhd Principally involved in investment holdingandtheprovisionofinformationtechnology,outsourcing, e-commerce service andinternetrelatedservices

100% –

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19 INvESTMENTS IN SUbSIdIARIES (cONTINUEd)

Thesubsidiariesareasfollows(Continued):



Subsidiaries of PEB (Continued)

IncorporatedoutsideMalaysia

PTLintasMargaSedaya(IncorporatedinIndonesia)

Design, construction, management,financing, operation,maintenance and tollcollection of the 116-kilometre Cikampek-PalimananHighwayinIndonesia

55% 55%

PTCimanggis-CibitungTollways

(IncorporatedinIndonesia)

Construction, operation andmaintenanceoftheproposed25.4-kilometrePackage4-Cimanggis-CibitungTollRoadinIndonesia

60% 60%

PLUSKalyan(Mauritius)PrivateLimited(IncorporatedinMauritius)

Investmentholding 100% 100%

PLUSPlaza(Mauritius)PrivateLimited(IncorporatedinMauritius)

Investmentholding 100% –

PLUSJetpur(Mauritius)PrivateLimited(IncorporatedinMauritius)

Investmentholding 100% –

Subsidiaries of Teras Teknologi Sdn Bhd


TerasControlSystemsSdnBhd

Engaged in supply, installation andmaintenanceoftollsystemsandequipmentforexpresswayprojects

100% –

TerasResearchSdnBhd Dormant 100% –

Krishost.ComSdnBhd Dormant 100% –

MyWebOnlineSdnBhd Dormant 100% –

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Thesubsidiariesareasfollows(Continued):



Subsidiary of PLUS Kalyan

PLUSBKSPTollLimited(IncorporatedinIndia)

Undertake the construction, operation,maintenance and toll collection of the fourlaningofthe22-kilometreBKSPHighwayintheStateofMaharashtra,India

94% 94%

Subsidiary of PLUS Plaza

InduNavayugaInfraProjectPrivateLimited(IncorporatedinIndia)

Undertake the construction, operation,maintenance and toll collection of the fourlaning and strengthening of Padalur toTrichy section fromKm 285 to Km 325 ofNH-45intheStateofTamilNadu,India

49% –

AllcompaniesareauditedbymemberfirmsofErnst&YoungGlobalintherespectivecountriesexceptforPLUSBKSP,INIPPL,LMSandCCTW.

(a) Incorporationsofforeignsubsidiaries

On24February2010,theCompanyincorporatedaforeignsubsidiaryinPortLouis,Mauritiusvideasubscriptionof1ordinaryshareofUSD1.00representing100%equityinterestinPLUSPlazaforacashconsiderationofUSD1.00.

Asat 31December2010,PEBsubscribed16,400,461ordinarysharesofPLUSPlaza fora cashconsiderationofUSD16,400,461.

On26October2010,theCompanyincorporatedaforeignsubsidiaryinPortLouis,Mauritiusvideasubscriptionof1ordinaryshareofUSD1.00representing100%equity interest inPLUSJetpurforacashconsiderationofUSD1.00.

On 12 November 2010, PEB subscribed 6,200 ordinary shares of PLUS Jetpur for a cashconsiderationofUSD6,200.

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(b) Acquisitionsofsubsidiaries

On2June2010,PLUSPlazacompletedthesubscriptionoftheFirstTrancheSharesof54,880,000ordinarysharesofRs10.00eachrepresenting49%equityinterestofINIPPLforacashconsiderationofRs688,500,000(equivalenttoapproximatelyRM52.6million).Followingthis,INIPPLhasbecomeaforeignsubsidiaryofPEB,throughitswhollyownedsubsidiary,PLUSPlaza,wherePEBnowhasthemanagementcontrolover thebusinessoperationof thecompanyaswellasmajorityboardcompositionpursuanttotheSharePurchaseCumShareholders’AgreementbetweenPLUSPlazaandothershareholdersofINIPPL.

On15June2010,theCompanyenteredintoaShareSaleAgreementwithUEMfortheacquisitionof 1,000,000 ordinary shares of RM1.00 each representing 100% equity interest in TERAS fromUEMforatotalcashconsiderationofRM44,000,000.

The fair values and carrying amounts of assets acquired and liabilities assumed from theacquisitionsofINIPPLandTERASareasfollows:

Note

fair values recognised

on acquisition

Acquiree’scarryingamounts

INIPPL RM’000 RM’000

ASSETS

Concessionassets 15 275,973 265,578

Property,plantandequipment 16 95 95

Sundryreceivables,depositsandprepayments 6,780 6,780

Cashandbankbalances 237 237

TOTAL ASSETS 283,085 272,690

LIABILITIES

Borrowing (187,628) (187,628)

Sundryandtradepayables (7,449) (7,449)

TOTAL LIABILITIES (195,077) (195,077)

Totalnetassets 88,008 77,613

Less:Minorityinterests (43,047)

Group'sshareofnetassets 44,961

Foreignexchangedifference 7,670

Considerationsettledincash 52,631

Cashandcashequivalentsofsubsidiaryacquired (237)

Netcashoutflowonacquisition 52,394

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(b) Acquisitionsofsubsidiaries(Continued)

fair values recognised

on acquisition

Acquiree’scarryingamounts

TERAS Note RM’000 RM’000

ASSETS

Property,plantandequipment 16 2,126 2,126

Intangibleassets 18 24 24

Deferredtaxassets 23 1,358 1,358

Tradereceivables 19,900 19,900

Sundryreceivables,depositsandprepayments 19,620 19,620

Shorttermdepositswithlicensedbanks 12,410 12,410

Cashandbankbalances 1,611 1,611

Othercurrentassets 15,335 15,335

TOTAL ASSETS 72,384 72,384

LIABILITIES

Tradeandsundrypayables (27,460) (27,460)

Taxpayable (414) (414)

TOTAL LIABILITIES (27,874) (27,874)

Totalnetassets 44,510 44,510

Less:NegativegoodwillonacquisitionofTERAS (510)

Considerationsettledincash 44,000

Cashandcashequivalentsofsubsidiaryacquired (14,021)

Netcashoutflowonacquisition 29,979

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(b) Acquisitionsofsubsidiaries(Continued)

TheeffectoftheacquistionsonthefinancialresultsoftheGroupfromthedateofacquisitionstothereportingdateisasfollows:

Group 2010

RM’000

Revenue 25,780

Lossfortheyear (5,776)

The acquisitions of INIPPL and TERAS were completed on 2 June 2010 and 15 June 2010respectively.However, iftheacquisitionsof INIPPLandTERAShadoccurredon1January2010,therevenueandprofit for theGroupwouldhavebeenRM3,357.2millionandRM1,301.1millionrespectivelyforthefinancialyearended31December2010.

(c) Proposeddisposalofasubsidiary

On 28 July 2010, the Company had entered into a conditional sale and purchase agreementwithPTBakrie&Brothers TBK (“Bakrie”) for the disposal by theCompany of its entire equityinterestof60%inCCTW,toBakrieforatotalcashconsiderationofRp57,823,830,725(equivalenttoRM20,122,693).Theconditionsprecedent in thesaleandpurchaseagreementhavenotbeenfulfilledandtheproposeddisposalofCCTWisexpectedtobecompletedinthefirsthalfof2011.PleaseseeNote21fordetails.

(d) CapitalreductionofELITE

Duringthefinancialyear,ELITEhascompletedthereductionof its issuedandpaid-upordinarysharesfrom294,105,932ordinarysharesofRM1.00eachto94,105,932ordinarysharesofRM1.00each,bywayofcancellationofRM1.00oftheparvalueofeachofthe200,000,000issuedandpaidupordinaryshares.

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Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Unquotedsharesatcost-InMalaysia 33,407 – 33,407 –

Unquotedsharesatcost-OutsideMalaysia 18 – – –

33,425 – 33,407 –

Shareofpost-acquisitionreserves 2,459 – – –

35,884 – 33,407 –

(a) Acquisitionofanassociate

On11June2010,theCompanyhadacquired20%equityinterestinTnGfromUEMLandHoldings,asubsidiaryofUEM,foratotalcashconsiderationofRM33,406,680.

(b) Subscriptionofshareinforeignassociate

On 15 November 2010, PLUS Jetpur subscribed 26,000 ordinary shares of Rs10.00 eachrepresenting26%equity interest inJSHLforatotalcashconsiderationofRs260,000(equivalenttoapproximatelyRM18,000).

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eport

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20 INvESTMENT IN ASSOcIATES (cONTINUEd)

Detailsoftheassociatesareasfollows:




Touch‘nGoSdnBhd TnG is a company primarily involved inproviding contactless means of farepaymentservicesviaapre-paide-paymentcardknownasTouch‘nGo.

20% –

IncorporatedoutsideMalaysia

Jetpur-SomnathHighwayLimited(IncorporatedinIndia)

To carry on bus iness o f des ign,engineering, procurement, construction,maintenance, management, operationsand toll collections and to augment theexisting route from Km 0 to Km 127 onJetpur-Somnath section of NH-8D inthe State of Gujarat, India by four laningon Design, Build, Finance, Operate andTransferbasis.

26% –

Thesummarisedfinancialstatementsoftheassociates,notadjustedfortheproportionofownershipinterestheldbytheGroup,isasfollows:

Group 2010

RM’000

ASSETS AND LIABILITIES

Totalassets 297,933

Totalliabilities 246,397

RESULTS

Revenue 104,905

Profitfortheyear 20,237

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ED) 21 dISPOSAL GROUP cLASSIfIEd AS HELd fOR SALE

Asmentioned inNote 19(c), the Company announced the proposed disposal of CCTW. Accordingly,theassets,liabilitiesandotherreserveofCCTWhavebeenpresentedintheStatementsofFinancialPositionasat31December2010as“Assetsofdisposalgroupclassifiedasheldforsale”,“Liabilitiesdirectly associatedwith disposal group classified as held for sale” and “Reserve of disposal groupclassifiedasheldforsale”,detailedasfollows:

Group

Note RM’000

ASSETS

Concessionassets 15 660

Deferredtaxassets 23 7

Sundryreceivables,depositsandprepayments 6,739

Shortterminvestment 19,718

Shorttermdepositswithlicencedbanks 341

Cashandbankbalances 4,160

Assets of disposal group classified as held for sale 31,625

LIABILITIES

Sundrypayablesandaccruals (67)

Liabilities directly associated with disposal group classified as held for sale (67)

Net assets of disposal group classified as held for sale 31,558

RESERVE

Othernon-distributablereserve (477)

Thenon-currentassetsclassifiedasheldforsaleontheCompany’sstatementsoffinancialpositionasat31December2010isasfollows:

Company

RM’000

ASSETS

Investmentinsubsidiary 17,760

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22 INvESTMENT SEcURITIES

Group

2010 2009

RM’000 RM’000

held-to-maturity investments

Unquotedprivatedebtsecurities,atcost 100,000 115,000

Add:Premium 1,277 1,638

Less:Discountamortised (5,788) (7,446)

95,489 109,192

Structuredproducts 50,000 50,000

Totalotherinvestments 145,489 159,192

Indicativemarketvalueofunquotedprivatedebtsecurities 97,756 111,673

Indicativefairvalueofstructuredproducts 48,020 46,810

MaturityprofileofinvestmentsecuritiesisdisclosedinNote44.

23 dEfERREd TAXATION

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

At1January (798,463) (381,085) 7,890 4,898

Recognisedintheincomestatements(Note12) (157,460) (417,427) (6,704) 2,992

Acquisitionofsubsidiary(Note19(b)) 1,358 – – –

Disposalgroupclassifiedasheldforsale(Note21) (7) – – –

Translationdifference (26) 49 – –

At31December (954,598) (798,463) 1,186 7,890

Presentedafterappropriateoffsettingasfollows:

Deferredtaxassets 3,023 8,316 1,186 7,890

Deferredtaxliabilities (957,621) (806,779) – –

(954,598) (798,463) 1,186 7,890

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Thecomponentsandmovementsofdeferredtaxassetsandliabilitiesduringthefinancialyearpriortooffsettingareasfollows:

Deferred Tax Assets of the Group:

Unabsorbed tax losses

Unabsorbed capital

allowance

Timing difference on

property, plant and equipment Provisions Total

RM’000 RM’000 RM’000 RM’000 RM’000

At1January2010 156,245 189,151 4,240 312,377 662,013

Recognisedintheincomestatements (90,346) (19,157) (7,372) (290,287) (407,162)

Acquisitionofsubsidiary(Note19(b)) – – – 1,358 1,358

Disposalgroupclassifiedasheldforsale(Note21) – (7) – – (7)

Translationdifference – – – (26) (26)

At31December2010 65,899 169,987 (3,132) 23,422 256,176

At1January2009 232,904 492,171 1,150 261,510 987,735

Recognisedintheincomestatements (76,659) (303,020) 3,090 50,816 (325,773)

Translationdifference – – – 51 51

At31December2009 156,245 189,151 4,240 312,377 662,013

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23 dEfERREd TAXATION (cONTINUEd)

Deferred Tax Liabilities of the Group:

Unabsorbed capital

allowance


EDE


property, plant and equipment Provisions Total

RM’000 RM’000 RM’000 RM’000 RM’000

At1January2010 21,083 (1,481,542) (17) – (1,460,476)

Recognisedintheincomestatements (21,083) (45,525) (45,046) 361,356 249,702

At31December2010 – (1,527,067) (45,063) 361,356 (1,210,774)

At1January2009 21,083 (1,389,862) (41) – (1,368,820)

Recognisedintheincomestatements – (91,680) 24 – (91,656)

At31December2009 21,083 (1,481,542) (17) – (1,460,476)

Deferredtaxassetshavenotbeenrecognisedinrespectofthefollowingitems:

Group

2010 2009

RM’000 RM’000

Unusedtaxlosses 533,770 526,373

Unabsorbedcapitalallowances 768,220 713,268

1,301,990 1,239,641

TheunusedtaxlossesandunabsorbedcapitalallowancesoftheGroupareinrespectofasubsidiaryinMalaysia and have not been recognised due to uncertainty of its recovery arising fromhistoricallosses.TheavailabilityforoffsettingagainstfuturetaxableprofitsoftherespectiveentitieswithintheGroupissubjecttonosubstantialchangeinshareholdingsofthoseentitiesundertheIncomeTaxAct,1967andguidelinesissuedbythetaxauthority.

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Deferred Tax Assets of the Company:

Timing difference

on property, plant

and equipment Provisions Total

RM’000 RM’000 RM’000

At1January2010 (3,130) 11,020 7,890

Recognisedintheincomestatements (324) (6,380) (6,704)

At31December2010 (3,454) 4,640 1,186

At1January2009 (2,287) 7,185 4,898

Recognisedintheincomestatements (843) 3,835 2,992

At31December2009 (3,130) 11,020 7,890

24 TOLL cOMPENSATION REcOvERAbLE fROM THE GOvERNMENT

Group

2010 2009

RM’000 RM’000

At1January,aspreviouslystated 2,604,068 2,013,767

Less:RemeasurementonadoptionofFRS139 (305,969) –

At1January,asrestated 2,298,099 2,013,767

Accretionofinterestarisingfromcumulativefairvalueadjustments 92,805 –

Tollcompensationrevenuefortheyear 885,332 813,062

Fairvalueadjustmentontollcompensationrevenuefortheyear (113,209) –

Compensationreceived/recognised (178,878) (210,424)

Setoffagainsttollrevenuesharing (13,256) –

SetoffagainstincometaxpayableofPLUS(Note33) (328,675) (12,337)

At31December 2,642,218 2,604,068

Analysedas:

Tollcompensationrecoverablewithin12months 181,872 117,879

Tollcompensationrecoverableafter12months 2,460,346 2,486,189

Totaltollcompensationrecoverable 2,642,218 2,604,068

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25 TRAdE ANd SUNdRY REcEIvAbLES, dEPOSITS ANd PREPAYMENTS

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Tradereceivables 10,324 – – –

Sundryreceivables 47,478 68,783 2,180 1,582

Less:Allowancefordoubtfuldebts (1,747) (353) (104) –

45,731 68,430 2,076 1,582

Depositsandprepayments 10,646 9,258 3,758 4,317

56,377 77,688 5,834 5,899

TheGrouphasnosignificantconcentrationofcreditriskthatmayarisefromexposurestoanygroupofdebtors.

Thetradeandsundryreceivablesarenon-interestbearingandaregenerallyon30to90days(2009:30to90days)terms.

Ageinganalysisoftradereceivables

Group

2010 2009

RM’000 RM’000

Neitherpastduenotimpaired 2,378 –

1to30dayspastduenotimpaired 1,346 –



10,324 –

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Group Company

Note 2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Current

Amountowingby:

–immediateholdingcompany (i) 500 – – –

–subsidiaries (ii) – – 73,793 573,269

–relatedcompanies (iii) 45,969 1,937 124 131

Amountowingto:

–immediateholdingcompany (i) (4,492) (4,255) (777) (796)

–subsidiaries (ii) – – (15) –

–relatedcompanies (iii) (88,700) (86,406) (614) (826)

Non-current

Amountowingbysubsidiary (ii) – – 43,716 65,378

Amountowingtoimmediateholdingcompany (i) (3,422) (6,885) – –

Amountowingtosubsidiary (ii) – – (64,535) (84,850)

TheDirectors regardUEM,which is incorporated inMalaysia and owns 38.51% of the Company’sequityasat31December2010,astheimmediateholdingcompany.TheultimateholdingcompanyisKhazanah,acompanyincorporatedinMalaysia.

(i) Amountowingby/(to)immediateholdingcompany

Theamountowingby/(to)immediateholdingcompanyistradeinnatureexceptamountowingtoUEMtotallingRM777,208(2009:RM796,298)whichisnon-tradeinnature.

Theamountowing isnon-interestbearing.Thenon-currentamountowing ispayableonlyafterPLUShasrepaidallamountsborrowedfromfinancialinstitutions.

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26 HOLdING, SUbSIdIARIES ANd RELATEd cOMPANIES (cONTINUEd)

(ii) Subsidiaries

Thecurrentamountowingby/(to)subsidiariesarenon-tradeinnature,non-interestbearingandrepayableondemand.

Thenon-currentamountowingtosubsidiary,PLUS, ispayable from31December2008until31December2016inninefixedannualinstallments.

The non-current amount owing by subsidiary, KLBK, relates to the shareholder’s advance thatwaspreviouslyowedbyKLBKtoitspreviousholdingcompany.FollowingtheacquisitionofKLBK,theshareholder’sadvanceisnowanamountowingbythesubsidiarytoPEB.Theamountisnotrepayablewithinthenexttwelvemonths.

(iii) Relatedcompanies

Related companies in these financial statements refer tomembers of Khazanah group ofcompanies. The amounts owing by/(to) related companies are trade in nature, non-interestbearingandrepayableondemand.

27 SHORT TERM INvESTMENTS

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

held-to-maturity investments

CommercialPapers/MediumTermNotes(“MTNs”) 50,000 70,000 10,000 25,000

Add:Premium 3 – – –

Less:Discount (70) (64) (4) (32)

49,933 69,936 9,996 24,968

Structuredproducts – 60,000 – –

49,933 129,936 9,996 24,968

IndicativemarketvalueofCommercialPapers/MTNs 50,287 69,710 9,995 21,813

Indicativemarketvalueofstructuredproducts – 59,213 – –

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bALANcES

Group Company

Note 2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Current

Islamicshorttermdeposits (i) 2,828,609 2,434,444

Conventionalshorttermdeposits

–ProceedsAccount (ii) 19,402 19,210 – –

–Others 592,112 397,752 281,028 163,029

3,440,123 2,851,406 281,028 163,029

Cashandbankbalances

–ProceedsAccount (ii) 1 2 – –

–Others 38,411 32,122 15,000 325

38,412 32,124 15,000 325

Totalcashandcashequivalents 3,478,535 2,883,530 296,028 163,354

Non-current

Longtermdeposits (iii) 20,946 501 20,480 –

(i) CertainIslamicshorttermdepositsamountingtoRM990.23million(2009:RM995.28million)areheldundertheFinanceServiceReserveAccountandMaintenanceReserveAccountpursuanttotheborrowings’covenantsandrestrictionsassetoutinNotes34and37.

AlsoincludedinIslamicshorttermdepositsplacedisanamountofRM1.98million(2009:RM1.98million)whichhasbeenpledgedassecurityforaperformancebondbyasubsidiaryassetoutinNote37.

(ii) ThisrelatestotheamountreceivedfromtheGovernmentofwhichshallbeusedinthemannerasprescribedintheProceedsAccountAgreementofPLUSassetoutinNote41.

(iii) This relates to PEB’s long term deposit of Rs31.05 crores (equivalent to RM22.0million attransactiondate) in theEscrowAccount, being consideration for theSecondTrancheSharesof25%ofINIPPL’ssharecapital,pursuanttooneoftheconditionsprecedentintheSharePurchaseCumShareholders’Agreementdated22January2010.Uponthirdanniversaryofthecommercialoperationdate,theSecondTrancheSharesof25%shallbetransferredtoPLUSPlaza.

AlsointhelongtermdepositisPLUSBKSP’splacementwithalicensedbankforthepurposeofobtainingperformanceguaranteeforitsconcession.

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29 SHARE cAPITAL

Group and Company

2010 2009

RM’000 RM’000

Authorised:

10,000,000,000ordinarysharesofRM0.25eachatbeginning/endoftheyear 2,500,000 2,500,000

Issued and fully paid up:

5,000,000,000ordinarysharesofRM0.25eachatbeginning/endoftheyear 1,250,000 1,250,000

30 OTHER RESERvES

Thebreakdownandmovementofothernon-distributablereservesareasfollows:

NON-DISTRIBUTABLE:Group Capital

redemption reserve

Share premium

Merger reserve

foreign currency

translation reserve

Capital reserve Total

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

(a) (b) (c) (d) (e)

At1January2010,aspreviouslystated 10,000 451,138 298,834 (7,664) – 752,308

FRS139remeasurementofnon-currentamountowingtoimmediateholdingcompany – – – – 3,657 3,657

At1January2010,asrestated 10,000 451,138 298,834 (7,664) 3,657 755,965

Foreigncurrencytranslation – – – (15,167) – (15,167)

Transfertoreserveattributabletodisposalgroupclassifiedasheldforsale(Note21) – – – 477 – 477

At31December2010 10,000 451,138 298,834 (22,354) 3,657 741,275

At1January2009 10,000 451,138 298,834 (20,312) – 739,660

Foreigncurrencytranslation – – – 12,648 – 12,648

At31December2009,asrestated 10,000 451,138 298,834 (7,664) – 752,308

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Thenatureandpurposeofeachcategoryofreserveareasfollows:

(a) ThecapitalredemptionreservearoseupontheredemptionbyPLUSofRedeemableConvertibleCumulativePreferenceSharesin1999.

(b) SharepremiumoftheGrouprepresentsthepremiumarisingfromtherightsissueandfromtheconversionof theRedeemableConvertibleBonds (“RCB”)asa result of adebt restructuring in2002.

(c) ThemergerreserveofRM298millionrepresentstheexcessofthenominalvalueofsharesoftheCompany issuedover thenominalvalueof thesharesacquireduponacquisitionofsubsidiariesin2002whichwereaccountedforunderthemergermethod.

(d) The foreign currency translation reserve is used to record exchange differences arising fromthetranslationofthefinancialstatementsofforeignoperationswhosefunctionalcurrenciesaredifferent from that of theGroup’spresentation currency. It is alsoused to record theexchangedifferencesarisingfrommonetaryitemswhichformpartoftheGroup’snetinvestmentinforeignoperations, where themonetary item is denominated in either the functional currency of thereportingentityortheforeignoperation.

(e) Thecapitalreserverepresentsthedifferencebetweenthefairvalueandcostoftheinterest-freenon-currentamountowingtotheimmediateholdingcompanyasat1January2010onadoptionofFRS139.

31 RETAINEd EARNINGS

TheCompanyelectedtopaydividendsunderthesingletiersystemin2008.TheCompanywillbeabletodistributedividendsoutofitsentireretainedearningsasat31December2010underthesingletiersystem.

In addition, as at 31 December 2010, PLUS has tax exempt profits available for distribution ofapproximatelyRM4,677million(2009:RM4,677million).

32 TRAdE PAYAbLES

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Tradepayables 60,709 35,454 – –

Payables are non-interest bearing and are normally settled on 30 to 60 days (2009: 30 to 60 days)terms.

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33 cURRENT TAX PAYAbLE

Group

2010 2009

RM’000 RM’000

Currenttaxpayablebeforesetoff 330,301 13,144

SetoffagainsttollcompensationrecoverablefromtheGovernment(Note24) (328,675) (12,337)

At31December 1,626 807

Following the expiry of PLUS’s tax exemption period in 2006, PLUS’s income is subject to tax. Theincome tax payable is set off against the toll compensation recoverable from the Government inaccordancewiththeSSCAasdetailedoutinNote3(i)(b).

34 LONG TERM ANd SHORT TERM fINANcIAL LIAbILITIES

Group Company

Note 2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Long Term financial Liabilities

PEB

PLUSSPVSukuk (a)(i) 1,429,054 1,377,021 1,429,054 1,377,021

PLUS

SeniorSukuk (a)(ii) 1,350,000 1,900,000 – –

SukukSeries1 (a)(iii) 1,491,547 1,764,492 – –

SukukSeries2 (a)(iv) 1,507,544 1,411,799 – –

SukukSeries3 (a)(v) 1,821,749 1,282,307 – –

ELITE

SeafieldSukuk (a)(vi) 862,137 859,566 – –

KLBK

BAIDS (a)(vii) 167,534 167,850 – –

At31December 8,629,565 8,763,035 1,429,054 1,377,021

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Group

Note 2010 2009

RM’000 RM’000

Short Term financial Liabilities

PLUS

SeniorSukuk (a)(ii) 550,000 550,000

SukukSeries1 (a)(iii) 384,016 –

KLBK

BAIDS (a)(vii) 4,943 7,917

At31December 938,959 557,917

PEb

(a)(i) PLUSSPVSukuk

Group and Company

2010 2009

RM’000 RM’000

Principal 1,317,024 1,317,024

Accretedprofitelement 112,030 59,997

1,429,054 1,377,021

ThePLUSSPVSukukareconstitutedbyaTrustDeeddated13June2008enteredintobyPLUSSPVBerhadastheIssuerandtheTrusteefortheholdersofthePLUSSPVSukuk.

PEBthroughan independentspecialpurposecompany,PLUSSPVBerhad(whosesharesareheld by a share trustee for and on behalf of charitable organisations), had until December2010 issued RM1.8 billion nominal value PLUS SPV Sukuk under amedium term notesprogrammeofuptoRM4billionnominalvaluePLUSSPVSukukbasedontheIslamicprincipleofMusyarakahto investors identifiedviaabook-buildingprocess.ThePLUSSPVSukukwereissued in 13 series, withmaturities commencing from 2013 to 2019. The yield tomaturityrangesfrom5.55%to7.55%perannumandiscompoundedsemi-annually.

Theprofitrateis2%perannumandtheprofitispayablesemi-annuallyoneachseriesofthePLUSSPVSukuk.

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34 LONG TERM ANd SHORT TERM fINANcIAL LIAbILITIES (cONTINUEd)

PEb (cONTINUEd)

(a)(i) PLUSSPVSukuk(Continued)

ThetermsofthePLUSSPVSukukcontainvariouscovenantsincludingthefollowing:

PEB(theObligor)shallmaintainanannualDebttoEquityRatio(“theD:ERatio”)notexceeding1.5 times throughout the tenure of the Sukuk Programme. The D:E Ratio is the ratio ofindebtednessoftheObligorrepresentedby:

(i) theobligationsoftheObligorunderthePurchaseUndertaking(whichisdeemedtobeanamountequivalenttotheaggregatenominalvalueofalloutstandingSukuk,adjustedtobeequivalenttotheaccretedvalueonthedatetheD:ERatioiscalculated);

(ii) allotherindebtednessoftheObligorforborrowedmonies(beitactualorcontingentandwhether Islamic or conventional) for principal only, hire purchase obligations, financelease obligations, net exposure determined on amarked tomarket basis under anyderivative instrument and obligations/contingent liabilities under guarantees/call or putoptionsof theObligorbutexcluding (a)any intercompany loanswhicharesubordinatedtotheSukuk,(b)non-recourseindebtednessincurredbytheObligor’ssubsidiariesand(c)anyperformancebonds/performanceguarantees/shareholderundertakings inrelation tocostoverrunsissuedbytheObligorinrespectofprojectsundertakenbytheObligorand/oritssubsidiaries;

to the shareholders’ funds of the Obligor including, if any, preference equity, subordinatedshareholders’advances/loansandretainedearnings/losseslessintangibles(ifany).

TheD:ERatio shall be calculated on a yearly basis and as andwhen such calculations arerequired tobemadeunder the termsof the transactiondocumentsduring the tenureof theSukuk Programme. In the case of D:ERatio calculated on a yearly basis, such calculationsshallbebasedonthelatestconsolidatedauditedaccountsoftheObligorandinthecaseofD:ERatiocalculatedatanyothertimes,thecalculationsshallbebasedonthelatestconsolidatedmanagementaccountsoftheObligor.

ThematurityprofileofPLUSSPVSukukisanalysedinNote36,‘MaturityProfileofBondsandBorrowings’.

TherelevantdetailsofthesecurityarrangementsarestatedinNote37,‘SecurityArrangementsofBondsandBorrowings’.

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PLUS

(a)(ii) SeniorSukuk

Group

2010 2009

RM’000 RM’000

Repayablewithin12months 550,000 550,000

Repayableafter12months 1,350,000 1,900,000

1,900,000 2,450,000

TheSenior Sukuk is constituted by the TrustDeed dated 18December 2007 entered into byPLUSandtheTrusteefortheholdersoftheSeniorSukuk.

TheSeniorSukukwas issuedon27December2007withanominalvalueofRM3,550millionunder the Islamic principle ofMusyarakahwhich is a contract of partnership in a venture.Underthisstructure,potentialinvestorsformedaMusyarakahamongthemselvestoinvestintheSeniorSukuk.

TheSeniorSukukwasissuedin10seriesasprimarysukukwithmaturitiescommencingfrom2008 to2017.Theexpected returnspecified foreachseriesofprimarysukuk is representedbysecondarysukuk.Thefacevalueofsecondarysukukarecomputedbasedontheexpectedreturn specified for each series of primary sukuk i.e. from 5.70% to 7.50% per annum. Thesecondarysukukareredeemableeverysixmonthscommencing30May2008.

Theproceedsof theSeniorSukukwasutilised toreplaceBAIDSofwhichRM3,550million innominalvaluewasoutstanding.Hence,noadditionalproceedswereraisedfromtheissuanceof the Senior Sukuk. The Senior Sukukwas issued at par to the face value, to the existingholdersoftheBAIDSinexchangeforthesurrenderandcancellationbysuchholdersoftheirrespectiveBAIDS. The existing holders of theBAIDSwere allottedwith such amount of thenominalvalueof theSeniorSukukwhich isequivalent to theamountofnominalvalueof theBAIDSasheldbythematacertaincutoffdate.

ThetermsoftheSeniorSukukcontainvariouscovenantsincludingthefollowing:

(i) PLUSmustmaintainaFinanceServiceCoverageRatio(“FSCR”)ofatleast1.25timesoneachcalculationdate,being30Juneand31Decemberineachyear.TheFSCRshallbeatleast2.25timespriortoanypaymentordeclarationofdividend,oranyadvances;

(ii) PLUSmustmaintain a Finance Service Reserve Account (“FSRA”) at any time duringthe tenure of the Senior Sukukwhich has aminimum balance equivalent to the next12months’ finance service due under the Senior Sukuk. The amount thereinmay bewithdrawntomeetanypaymentundertheSeniorSukuk,providedalwaysthatPLUSshalltransfermonies into such accountwithin 30 days from suchwithdrawal tomaintain theminimumbalancedescribedabove;and

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PLUS (cONTINUEd)

(a)(ii) SeniorSukuk(Continued)

(iii) PLUSmustmaintainaMaintenanceReserveAccount(“MRA”)atanytimeduringthetenureof the Senior Sukukwhich has aminimum balance equivalent to the projected capitalexpenditureoftheexpresswaysforthenext6months.However,aminimumbalancemaybewithdrawntomeetanypaymentof theprojectedcapitalexpenditure forexpressways,subject always to the condition that PLUS shall transfermonies into theMRAwithin 30daysofsuchwithdrawaltomaintaintheminimumbalancedescribedabove.

Thematurity profile of Senior Sukuk is analysed inNote 36, ‘Maturity Profile of Bonds andBorrowings’.


(a)(iii) SukukSeries1

Group

2010 2009

RM’000 RM’000

SukukSeries1 1,148,930 1,148,930


1,875,563 1,764,492

Repayablewithin12months 384,016 –

Repayableafter12months 1,491,547 1,764,492

1,875,563 1,764,492

TheSukukSeries1areconstitutedbyaTrustDeeddated28September2006enteredintobyPLUSandtheTrusteefortheholdersoftheSukukSeries1.

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(a)(iii) SukukSeries1(Continued)

SukukSeries1wasissuedon10October2006undertheIslamicprincipleofMusyarakahwithanominalvalueofRM2,260millionviaexchangeforBBASerialBondspreviouslyissuedon20December2002.SukukSeries1arenegotiablenon-interestbearingsecuredBondsinbearerformevidencingapromisebyPLUStopaystatedsumsonspecifieddates.TheSukukSeries1are issued in12serieswith tenures from8.5years to14years fromthedateof issue.Theyieldtomaturityrangesfrom5.75%to6.95%perannumandiscompoundedsemi-annually.

TheSukukSeries1entitleholdersoftheSukukSeries1toaone-offpaymentoftheExercisePriceontheMaturityDateandDistributionontheDistributionDate.

The terms of the Trust Deed prescribes that in the event of default, the nominal amountoutstandingoftheSukukSeries1willbecomeimmediatelydueandpayable.

ThematurityprofileofSukukSeries1 isanalysed inNote36, ‘MaturityProfileofBondsandBorrowings’.


(a)(iv) SukukSeries2

Group

2010 2009

RM’000 RM’000

SukukSeries2 1,047,972 1,047,972


1,507,544 1,411,799


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PLUS (cONTINUEd)

(a)(iv) SukukSeries2(Continued)

SukukSeries2wasissuedon10October2006undertheIslamicprincipleofMusyarakahwithanominalvalueofRM2,410millionviaexchangeforZeroSerialBBApreviously issuedon17June2005.SukukSeries2arenegotiablenon-interestbearingsecuredBondsinbearerformevidencingapromisebyPLUStopaystatedsumsonspecifieddates.TheSukukSeries2areissued in4serieswithtenuresfrom11yearsto14yearsfromthedateof issue.Theyieldtomaturityrangesfrom6.35%to6.95%perannumandiscompoundedsemi-annually.

TheSukukSeries2entitleholdersoftheSukukSeries2toaone-offpaymentoftheExercisePriceontheMaturityDateandDistributionontheDistributionDate.




(a)(v) SukukSeries3

Group

2010 2009

RM’000 RM’000

SukukSeries3 1,561,543 1,118,483


1,821,749 1,282,307


PLUS issued2 tranchesofSukukSeries3under the IslamicprincipleofMusyarakahwithanominal valueofRM1,375millionon10October2006with tenuresof 14 yearsand15 yearsfrom the date of issue. Further, PLUS has issued the third, fourth and fifth tranchewith anominalvalueofRM700million,RM600millionandRM1,000millionon29May2008,29May2009and31May2010 respectively.All three trancheswere issuedwitha tenureof14 yearsfrom the date of issue. SukukSeries 3 are negotiable non-interest bearing securedMediumTermNotes (“MTNs”) in bearer form evidencing a promise by PLUS to pay stated sums onspecifieddates.

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(a)(v) SukukSeries3(Continued)

The yield tomaturity ranges from 5.90% to 6.52% per annum and is compounded semi-annually.

Therewill be two (2) types of Sukuk Series 3 namely thoseMTNswith Periodic PaymentsandthoseMTNswithoutPeriodicPaymentsprovidedthatSukukSeries3involvingMTNswithPeriodicPaymentsmayonlybeissueduponeither(a)redemptioninfulloftheSeniorSukuk,theSukukSeries1andtheSukukSeries2;or(b)consentoftheholdersoftheSeniorSukuk,the Sukuk Series 1 and the Sukuk Series 2; or (c) from 30 June 2019 onwards, whicheverearlier.

MTNswith Periodic Paymentswill be entitled to Periodic Payments and a payment of theExercisePrice.

MTNswithout Periodic Paymentswill only be entitled to a one-off payment of the ExercisePriceontheMaturityDateandDistributionontheDistributionDate.




ELITE

(a)(vi) SeafieldSukuk

Group

2010 2009

RM’000 RM’000

Principal 921,904 921,904

Accretedprofitelement 2,215 798

Unamortisedpremiumonredemption (61,982) (63,136)

862,137 859,566

TheSeafieldSukukisconstitutedbytheTrustDeeddated5May2009enteredintobySeafieldCapital Berhad (“Seafield”) as the Issuer and Universal Trustee (Malaysia) Berhad, as theTrusteefortheholdersoftheSeafieldSukuk.

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ELITE (cONTINUEd)

(a)(vi) SeafieldSukuk(Continued)

Seafieldwas incorporated inMalaysiaon28December2007under theCompaniesAct, 1965asaspecialpurposecompanywhosesharesareheldbyasharetrusteeforandonbehalfofcharitableorganisation. Itsprincipalactivity is toundertake the issueof Islamicsecurities inaccordancewiththeSyariahprinciples.

ELITE, through Seafield, had on 27May 2009 issued RM950million nominal value SeafieldSukukunderthemediumtermnotesprogrammeofuptoRM1.5billionnominalvalueSeafieldSukuk based on the Islamic Principle ofMusyarakah. The Seafield Sukukwere issued in 9serieswithmaturitiescommencingfrom2018to2026.

The proceeds from this issuance, of RM921.9millionwere used to replace the outstandingELITE BAIDS of RM640million together with the associated accrued profit and premium,to fund the fees and expenses under the IslamicMTNProgramme, general funding, capitalexpenditureandworkingcapitalrequirementsofELITE.

TheprofitratefortheSeafieldSukukrangesfrom6.00%to7.35%andarepaidsemi-annuallyoneachseriesoftheSeafieldSukuk.

ThetermsoftheSeafieldSukukcontainvariouscovenantsincludingthefollowing:

(i) Under thePurchaseUndertakingdated5May2009,ELITEshall, as longas theSeafieldSukuk shall remain outstanding, ensure that the Finance Service Cover Ratio (“FSCR”)at each calculation date shall not be less than 1.25 times throughout the tenure of theIslamicMTNProgramme.TheFSCRshallbeat least2.00timesprior toanypaymentordeclarationofdividend,oranyadvances;and

(ii) ELITE shall open andmaintain a Syariah compliant Finance Service Reserve Account(“FSRA”)andensure that fundsshallbedeposited intoandmaintained in theFSRAwithan amount equivalent to the next six (6)months finance service due under the SeafieldSukuk.

The terms of the Trust Deed prescribes that in the event of default, the nominal amountoutstandingoftheSeafieldSukukwillbecomeimmediatelydueandpayable.

ThematurityprofileofSeafieldSukuk is analysed inNote36, ‘MaturityProfileofBondsandBorrowings’.


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(a)(vii) BAIDS

Group

2010 2009

RM’000 RM’000

BAIDS 150,177 159,052


172,477 175,767

Repayablewithin12months 4,943 7,917

Repayableafter12months 167,534 167,850

172,477 175,767

The KLBKBAIDS are constituted pursuant to a Trust Deed between KLBK andMalaysianTrusteesBerhaddated5July2005.KLBKissuedRM247millionsecuredPrimaryBAIDSbasedontheIslamicfinancingprincipleofBaiBithamanAjil.

ThePrimaryBAIDScomprise25series,withtotalproceedsofRM173.18millionandredemptionvalueofRM247millionmaturingannually fromyear2006 toyear2022.Theyield tomaturityranges from 4.00% to 9.00% per annum and is compounded semi-annually. Attached to thePrimary BAIDS are non-detachable Secondary BAIDSwhich represents the profit elementattributable to thePrimaryBAIDS.Theprofit rate is4%perannumand theprofit ispayablesemi-annuallyoneachseriesof thePrimaryBAIDS.TheSecondaryBAIDShavea facevalueofRM119.54million.

TheprofitelementonthePrimaryBAIDSisrecognisedasfinancecostoverthetenureofthePrimaryBAIDS’seriesandischargedtotheincomestatementasanexpenseinthefinancialyearitisincurred.

Thematurity profile of KLBKBAIDS is analysed inNote 36, ‘Maturity Profile of Bonds andBorrowings’.


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35 LONG TERM ANd SHORT TERM bORROWINGS ANd AMOUNT dUE TO GOvERNMENT

Group

Note 2010 2009

RM’000 RM’000

LongTermBorrowings (A) 1,824,805 1,654,284

ShortTermBorrowings (B) 140,945 23,947

AmountduetoGovernment (C) 38,096 38,096

2,003,846 1,716,327

(A) Long Term Borrowings

ELITE

GovernmentLoans

–Amountdrawndown 89,916 89,916

–AdditionalGovernmentLoan 300,000 300,000

(a)(i) 389,916 389,916

LINKEDUA

GovernmentLoan

–Principalandcapitalisedinterest 1,161,985 1,074,320

–Accruedinterest 94,818 87,664

(a)(ii) 1,256,803 1,161,984

PLUS BKSP

TermLoans (a)(iii) – 102,384

INIPPL

TermLoan (a)(iv) 178,086 –

Total Long Term Borrowings 1,824,805 1,654,284

(B) Short Term Borrowings

PLUS BKSP

TermLoans (a)(iii) 2,254 23,947

CommercialPaper (b)(i) 131,844 –

INIPPL

TermLoan (a)(iv) 6,847 –

Total Short Term Borrowings 140,945 23,947

(C) ELITE

AmountduetoGovernment (c)(i) 38,096 38,096

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(cONTINUEd)

ELITE

(a)(i) GovernmentLoans

ELITE entered into an agreement on 15 December 2000with the Governmentwhereby theGovernmentprovidesfinancingup toamaximumofRM100million,atan interest rateof8%perannumcapitalisedonanannualbasis.

TheGovernmentandELITEenteredintoaSupplementalLoanAgreement(“SLA”)andAdditionalGovernmentLoanAgreement(“AGLA”)dated15January2003,wherebytheGovernmentagreedtowaiveELITE’sobligation topay intereston the thenexistingGovernmentLoanswitheffectfrom15December2000to31December2001andtoprovideELITEwithaninterestfreetermloan facility at a principal of RM300million. It was also agreed that the aforesaid existingGovernmentLoanshallbeinterestfreewitheffectfrom1January2002tothefinalrepaymentdate.

PursuanttoELITE’sSLAandAGLA,theGovernmentLoanandAdditionalGovernmentLoanarerepayableinfullon30June2015.

ThematurityprofileoftheELITE’sGovernmentLoansisanalysedinNote36,‘MaturityProfileofBondsandBorrowings’.


LINkEdUA

(a)(ii) GovernmentLoan

LINKEDUA’sGovernmentLoanisrepayablein13semi-annualinstalmentsrangingfromRM58milliontoRM346millioncommencingfrom14June2014andbearsinterestatrateof8%perannum.

Thematurity profile of the LINKEDUA’s Government Loan is analysed inNote 36, ‘MaturityProfileofBondsandBorrowings’.


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35 LONG TERM ANd SHORT TERM bORROWINGS ANd AMOUNT dUE TO GOvERNMENT (cONTINUEd)

PLUS bkSP

(a)(iii) TermLoans

PLUSBKSPhassecuredatermloanandadditionaltermloan,denominatedinIndianRupees,whichbears interestrateof12.25%perannumand13.25%respectively.BothtermloansaresecuredbyfuturetollcollectionofPLUSBKSP.

The term loans have been refinanced with a Rs192 crores Commercial Paper facility(“CommercialPaper”)inOctober2010,thedetailsofwhicharedisclosedinNote35b(i).

INIPPL

(a)(iv) TermLoan

The term loan isconstitutedbyaCommonRupeeLoanAgreementdated18November2006entered intoby INIPPLas theborrower,CanaraBankas the lender’sagent, security trusteeandthelenders.

TheloanisdenominatedinIndianRupeesamountingtoRs266croresandtheinterestrateisat12.25%perannum.

ThematurityprofileofINIPPLtermloanisanalysedinNote36,‘MaturityProfileofBondsandBorrowings’.


(b)(i) CommercialPaper

TheCommercialPaperwasissuedon25October2010,withanominalvalueofRs192croresandayieldtomaturityof10.00%perannum,amountingtoRs192croreswithproceedsamountofRs174.5crores,andconstitutedbyLetterofOffer,DealConfirmationNoteandIssuingandPayingAgencyAgreemententeredintobetweenPLUSBKSPandAxisBank, in itscapacityasanIssuingandPayingAgent.

TheCommercialPaperwasissuedtorefinancetheexistingdebtsandfulfillingworkingcapitalrequirementofPLUSBKSPandwillmatureon4October2011.

ThematurityprofileoftheCommercialPaperisanalysedinNote36,‘MaturityProfileofBondsandBorrowings’.


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(cONTINUEd)

ELITE

(c)(i) AmountduetoGovernment

Under the Supplemental Concession Agreement entered on 9 January 1997 between theGovernment ofMalaysia andELITE, ELITEundertook to implement the design, construction,maintenance,operationandmanagementofthreeadditionalinterchangesnamelythePutrajayaInterchange, the proposed Salak Tinggi Interchange (later relocated to Ampar Tenang andthereaftercalledtheAmparTenangInterchange)andBandarBaruNilaiInterchangealongtheNSECLExpressway,andanextensionoftheKLIAExpressway(“AdditionalExpressway”).

To assist in the financing of the acquisition of the additional land required of the aboveAdditionalExpressway,theGovernmentofMalaysiaagreedtopaytothirdpartiesonbehalfofELITEanamountinaggregatenotexceedingRM120million(referredtoasthe“ReimbursementLandCost”). TheReimbursement LandCost is interest free and is payable by ELITE to theGovernmentinfourequalinstallments,asfollows:

DateofRepayment Percentage

(i) Onorbefore31December2015 25%ofReimbursableLandCosts

(ii) Onorbefore31December2016 25%ofReimbursableLandCosts

(iii) Onorbefore31December2017 25%ofReimbursableLandCosts

(iv) Onorbefore31December2018 25%ofReimbursableLandCosts

As at 31 December 2010, the amount payable to the Governmentwas RM38,095,662 (2009:RM38,095,662).

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36 MATURITY PROfILE Of bONdS ANd bORROWINGS

Amountsoutstandingandrepayableasat31December2010and31December2009oftheGrouparetabulatedasfollows:

NoteWithin 1 year

Between 1 and 2 years


After 5 years Total

RM’000 RM’000 RM’000 RM’000 RM’000

2010

PEB

PLUSSPVSukuk 34(a)(i) – – 569,695 859,359 1,429,054

PLUS

SeniorSukuk 34(a)(ii) 550,000 350,000 800,000 200,000 1,900,000

SukukSeries1 34(a)(iii) 384,016 361,691 951,185 178,671 1,875,563

SukukSeries2 34(a)(iv) – – – 1,507,544 1,507,544

SukukSeries3 34(a)(v) – – – 1,821,749 1,821,749

ELITE

SeafieldSukuk 34(a)(vi) – – – 862,137 862,137

GovernmentLoans 35(a)(i) – – 389,916 – 389,916

LINKEDUA

GovernmentLoan 35(a)(ii) – – 877,613 379,190 1,256,803

KLBK

BAIDS 34(a)(vii) 4,943 5,775 29,653 132,106 172,477

PLUS BKSP

TermLoans 35(a)(iii) 2,254 – – – 2,254

CommercialPaper 35(b)(i) 131,844 – – – 131,844

INIPPL

TermLoan 35(a)(iv) 6,847 5,047 32,034 141,005 184,933

1,079,904 722,513 3,650,096 6,081,761 11,534,274

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Amountsoutstandingandrepayableasat31December2010and31December2009oftheGrouparetabulatedasfollows(Continued):

NoteWithin 1 year



After 5 years Total

RM’000 RM’000 RM’000 RM’000 RM’000

2009

PEB

PLUSSPVSukuk 34(a)(i) – – 345,044 1,031,977 1,377,021

PLUS

SeniorSukuk 34(a)(ii) 550,000 550,000 950,000 400,000 2,450,000

SukukSeries1 34(a)(iii) – 362,766 958,323 443,403 1,764,492

SukukSeries2 34(a)(iv) – – – 1,411,799 1,411,799

SukukSeries3 34(a)(v) – – – 1,282,307 1,282,307

ELITE

SeafieldSukuk 34(a)(vi) – – – 859,566 859,566

GovernmentLoans 35(a)(i) – – – 389,916 389,916

LINKEDUA

GovernmentLoan 35(a)(ii) – – 340,066 821,918 1,161,984

KLBK

BAIDS 34(a)(vii) 7,917 4,841 21,766 141,243 175,767

PLUS BKSP

TermLoans 35(a)(iii) 23,947 25,434 76,950 - 126,331

581,864 943,041 2,692,149 6,782,129 10,999,183

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37 SEcURITY ARRANGEMENTS Of bONdS ANd bORROWINGS

The security arrangements as at 31 December 2010 in connection with the Group’s bonds andborrowingsareasfollows:

(i) SecurityarrangementforPLUSSPVSukuk

(a) AfirstrankingdebentureincorporatingafixedandfloatingchargeoverallpresentandfutureassetsoftheIssuer;and

(b) AnassignmentoftheIssuer’srevenueandincomeincludingbutnotlimitedtoanydividendsanddistributions,whetherincomeorcapitalinnature.

(ii) SecurityarrangementforSeniorSukuk

(a) Anassignmentandcharge (rankingfirst inpointof security) over theTollAmounts,CreditBalances, Additional Project Accounts (save and except in respect of the Additional TollRevenue Account, it would exclude the ELITE Amount) and PLUS Amount (except forDistribution Amount 1, Distribution Amount 2, Distribution Amount 3, Charged Amount1, Charged Amount 2 and Charged Amount 3 and themonies in the Proceeds Account,Performance Bonds Proceeds Account, Distribution Account 1, Distribution Account 2,DistributionAccount3,PaymentAccount1,PaymentAccount2andPaymentAccount3andallthecreditbalancestherein)(“AssignmentandCharge”).

(b) Anassignment(rankingfirstinpointofsecurity)oftherightsovertheConcession,ConstructionGuarantees(otherthanthePerformanceBonds),ConstructionContractsandInsurance.

(c) A debenture over the fixed andfloating assets of PLUS (other than those security interestalready covered under (a) and (b) above, the PerformanceBonds, the PerformanceBondsProceeds Account, the Proceeds Account, Distribution Account 1, Distribution Account 2,DistributionAccount3,PaymentAccount1,PaymentAccount2,PaymentAccount3andallthecreditbalancesthereinaswellastheChargedAmount1,ChargedAmount2andChargedAmount3).

(d) Anassignment (rankingfirst inpointofsecurity)overPLUS’rights, titleand interest in theAdditionalProjectAgreements.

(e) Anassignment(rankingsecondinpointofsecurityaftertheGovernment)overthePerformanceBondsandPerformanceBondsProceedsAccount.

(hereinafterreferredtoasthe“Security”)

ThesecuritydocumentsshallallformpartofthetermsoftheSeniorSukuk.

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(ii) SecurityarrangementforSeniorSukuk(Continued)

TheSecurityTrusteeshallholdthebenefitoftheSecurityfortheDesignatedDebtfinanciers(asdefinedbelow)rankingparipassuamongstthemselvessubjecttothefollowing:

(a) thesecurityinrespectofthePerformanceBondsandPerformanceBondsProceedsAccountshallranksecondaftertheassignmentofthesameinfavouroftheGovernment;and

(b) the security in respect of the FSRA (as hereinafter defined) shall rank as between theDesignatedDebtfinanciersasfollows:

(i) rankingfirst,theSukukholders;and

(ii) ranking second, the lenders of theMaintenance Bond facility and Overdraft facility(excludingtheTradeLines)whichshallrankparipassuamongstthemselves.

TheDistributionAccount1 (andall creditbalances therein)and theDistributionAmount1, andthePaymentAccount1(andallcreditbalancestherein)andtheChargedAmount1areexcludedfrom the Security and is held for the benefit of/charged to the holders of the Sukuk Series 1respectively.

The Proceeds Account and all credit balances in the Proceeds Account are excluded from theSecurityandareforthebenefitoftheGovernment.

TheDistributionAccount2 (andall creditbalances therein)and theDistributionAmount2, andthePaymentAccount2(andallcreditbalancestherein)andtheChargedAmount2areexcludedfrom the Security and is held for the benefit of/charged to the holders of the Sukuk Series 2respectively.

TheDistributionAccount3 (andall creditbalances therein)and theDistributionAmount3, andthePaymentAccount3(andallcreditbalancestherein)andChargedAmount3areexcludedfromtheSecurityandisheldforthebenefitof/chargedtotheholdersoftheSukukSeries3.

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37 SEcURITY ARRANGEMENTS Of bONdS ANd bORROWINGS (cONTINUEd)

(iii) SecurityarrangementsforSukukSeries1

(a) AssignmentovertheSukukSeries1ChargedAmounts;and

(b) ChargeoverPaymentAccount1.

TheSukukSeries 1 Security Account to receive theSukukSeries 1ChargedAmounts shall besolelymanagedbytheSukukSeries1Trustee.

TheSukukSeries1ChargedAmountsare thesumnotexceedingRM400millionof thepositiveCashFlowProceedspercalendaryearinrespectoftheperiodcommencing1January2011to31December2015andRM260millioninrespectoftheperiodfrom1January2016to31December2016.

DeterminationoftheCashflowProceedsshallbeinthefollowingmanner:

– Sixmonthspriortoandendingonthedatefalling65daysbeforematuritydateoftheSukukSeries1(the“RelevantPeriod”),PLUSshalldeterminetheexcesscashflowofPLUS(otherthanproceedsfromtheissuanceofnewsharesbyPLUSandexcludingtheFSRAandMRA)at theendofeachRelevantPeriodafterprovidingorpayment,as thecasemaybe, for thefollowing:

(i) for PLUS’s budgeted operating and capital expenditure requirements for the followingRelevantPeriod;

(ii) forsuchoftheMaintenanceBondfacilityandOverdraftfacilityasremainsoutstanding;

(iii) totheFSRAandMRAduringthesaidRelevantPeriod;and

(iv) inrespectoftheredemptionofSeniorSukukduringthesaidRelevantPeriod.

(iv) SecurityarrangementsforSukukSeries2



The Sukuk Series 2 Charged Amounts in relation to each series of the Sukuk Series 2 shallbe deposited into the Sinking Fund Account within five (5) days after the certification of theCashflowProceedsby theauditors (which shall bewithin thirty (30) days from theendof eachDeterminationPeriod) and in any event not less than 30 days prior to thematurity date of therelevantseriesoftheSukukSeries2.

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(iv) SecurityarrangementsforSukukSeries2(Continued)


– PLUSshalldetermineitsexcessrevenueandincome(otherthanproceedsfromtheissuanceof new shares by PLUS and excluding the FSRA andMRA) at the end of a DeterminationPeriodafterprovidingorpayment,asthecasemaybe,forthefollowing:

(i) for PLUS’s budgeted operating and capital expenditure requirements for the followingDeterminationPeriod;


(iii)totheFSRAandMRAduringthesaidDeterminationPeriod;

(iv) inrespectoftheSeniorSukukduringthesaidDeterminationPeriod;and

(v) inrespectoftheSukukSeries1duringthesaidDeterminationPeriod.

“Determination Period”means the period beginning six (6)months and 65 days prior to thematuritydateofeachtranchesoftheSukukSeries2andendingonthedatefallingsixtyfive(65)daysbeforethematuritydateofthattranchesoftheSukukSeries2.

Tranches Sukuk Series 2 charged Amounts

(RM million)

Maturity date (years from the

Issue date)

1 350.0 11

2 650.0 12

3 800.0 13

4 610.0 14

Total 2,410.0

The proceeds in the Sinking Fund Account shall be utilised towards redemption of the SukukSeries2ontheirrespectivematuritydates.TheSinkingFundAccountshallbeoperatedsolelybytheTrustee.

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(v) SecurityarrangementsforSukukSeries3



The Sukuk Series 3 Charged Amounts in relation to each series of the Sukuk Series 3 shallbe deposited into the Sinking Fund Account within five (5) days after the certification of theCashflowProceedsby theauditors (which shall bewithin thirty (30) days from theendof eachDeterminationPeriod)andinanyeventnotlessthanthirty(30)dayspriortothematuritydateoftherelevantseriesoftheSukukSeries3.


– PLUSshalldetermineitsexcessrevenueandincome(otherthanproceedsfromtheissuanceof new shares byPLUS and excluding theFSRAandMRA) at end ofDeterminationPeriodafterprovidingorpayment,asthecasemaybe,forthefollowing:

(i) for PLUS’s budgeted operating and capital expenditure requirements for the followingDeterminationPeriod;


(iii) totheFSRAandMRAduringthesaidDeterminationPeriod;

(iv) inrespectoftheSeniorSukukduringthesaidDeterminationPeriod;

(v) inrespectoftheSukukSeries1duringthesaidDeterminationPeriod;and

(vi) inrespectoftheSukukSeries2duringthesaidDeterminationPeriod.

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(v) SecurityarrangementsforSukukSeries3(Continued)

“DeterminationPeriod”meanstheperiodbeginningsix (6)monthsandsixtyfive(65)dayspriortothematuritydateofeachtranchesoftheSukukSeries3andendingonthedatefallingsixtyfive(65)daysbeforethematuritydateofthattranchesoftheSukukSeries3.

Tranches Sukuk Series 2 charged Amounts

(RM million)

Maturity date (years from the

Issue date)

1 675.0 14

2 700.0 15

3 700.0 14

4 600.0 14

5 1,000.0 14

Total 3,675.0

The proceeds in the Sinking Fund Account shall be utilised towards redemption of the SukukSeries3ontheirrespectivematuritydates.TheSinkingFundAccountshallbeoperatedsolelybytheTrustee.

(vi) SecurityarrangementsforELITE’sSeafieldSukuk,GovernmentLoanandAdditionalGovernmentLoan

The security arrangements in connectionwith ELITE’s Seafield Sukuk, Government Loan andAdditional Government Loan (collectively referred to as the “Secured Indebtedness”) are asfollows:

(a) DebentureincorporatingafirstfixedandfloatingchargeontheassetsofELITE,bothpresentandfuture;

(b) Assignment of all ELITE’s contractual rights, interests, title, and benefits in and to theConcession Agreement and any other amendment(s) or variation(s) thereof and addition(s)thereto from time to time executed supplemental thereto on in substitution thereof, theProjectDocumentsandproceedstherefrom-fortheavoidanceofdoubt,thisinterestoftheSukukholdersshallnotbesharedwiththeGovernment;

(c) Assignment ofELITE’s contractual rights, interests, titles, andbenefits in theperformancebonds and the proceeds therefrom, where such performance bonds are secured to theGovernment inaccordancewiththeConcessionAgreementandanyotheramendment(s)orvariation(s)thereofandaddition(s)theretofromtimetotimeexecutedsupplementaltheretoorinsubstitutionthereof-fortheavoidanceofdoubt,thisinterestoftheSukukholdersshallrankaftertheinterestoftheGovernment;

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(vi) SecurityarrangementsforELITE’sSeafieldSukuk,GovernmentLoanandAdditionalGovernmentLoan(Continued)

(d) First fixed charge over the Additional Operating Account (other than the toll amountscollected and held on behalf of PLUS, theRevenue Account, the Finance Service ReserveAccount,theGovernmentLoansServiceReserveAccount,theIPOAccountandCompensationAccount)andfirstfloatingchargeovertheOperationsAccountsandCapexAccountincludingall investmentsand income thereonand theassignmentof thecreditbalancesstanding intheDesignatedAccounts;

(e) AssignmentofallrelevantInsurancesrequiredtobeundertakeninrespectoftheConcession(asdefinedbelow);

(f) AnyothersecurityasrequiredandadvisedbytheSoleLegalCounselof theLeadManagerandasagreedbyELITE.

TheConcessionshallmeantheconcessiongrantedbytheGovernmentundertheConcessionAgreementtoELITE.

Theabove-mentionedsecurity(exceptfor(b)and(c)above),aretobesharedwiththeGovernmentinthefollowingmanner:

(i) OnaparipassubasiswiththeGovernmentinrespectoftheloangrantedbytheGovernmenttoELITEforthemaximumprincipalamountofRM100million;and

(ii) InprioritytotheGovernmentinrespectoftheloangrantedbytheGovernmenttoELITEforthemaximumprincipalamountofRM300million.

(vii) SecurityarrangementsforLINKEDUA’sGovernmentLoan

ThesecurityarrangementsforLINKEDUA’sGovernmentLoanareasfollows:

(a) an assignment and charge (ranking pari passu in point of security) of the rights over theConstructionContracts,InsuranceandPerformanceBonds;

(b) chargeoverSecurityAccount3andSecurityAccount5(rankingparipassuinpointofsecurity)beingtheaccountsmaintainedforthesurpluscashflowforthepurposeofGovernmentLoanrepaymentandfortheproceedsofanyissuanceofnewsharesrespectively;

(c) achargeovertheTollAmountsandthecreditbalancestherein(rankingparipassuinpointofsecurity);and

(d) a debenture over the fixed and floating assets of LINKEDUA (other than those securityalreadycoveredunder(a)and(b)above)rankingparipassuinpointofsecurity.

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(viii)SecurityarrangementsforKLBK’sBAIDS

ThesecurityarrangementforKLBK’sPrimaryBAIDSareasfollows:

Security under the Debenture

(a) bywayoffirstfixedcharge:

(i) anyfreeholdorleaseholdpropertyfromtimetotimeandatanytimeownedbyKLBK;

(ii) all thegoodwillofKLBK,anypatents, trademarks,copyrights, registereddesignsandsimilar assets or rights from time to time and at any time owned by KLBK, and anyuncalledcapitalfromtimetotimeandatanytimeofKLBK;and

(iii) allbookdebtsandotherdebtsandallotheramountswhatsoeverfromtimetotimeandat any time due, owing or payable to KLBK, and the benefit of any Security InterestsfromtimetotimeandatanytimeheldbyKLBKinrespectofanysuchdebtsoramountsincludingsuchamountsasinvestedbyKLBKfromtheamountsstandingtothecreditofanyaccountschargedtotheSecurityAgentandanyincomederivedthereon.

(b) byway of firstfloating charge, theundertaking ofKLBKand all its other property, assets,revenues and rights,whatsoever andwheresoever, both present and future (including anyPermittedInvestmentsnotchargedpursuantto(viii)(a)above).

Security under the Deed of Assignment

(a) allitspresentandfuturerightsundertheConcessionAgreementincludingallamountsfromtimetotimeandatanytimepayabletoKLBKthereunderbytheGovernmentofMalaysia;

(b) all itspresentand future rights, title and interest inandunder the Insurance includingallamountswhatsoever payable under the Insurance and all other rights accruing to KLBKthereunderincludingallclaimsandanyreturnedpremiums;

(c) therighttopursueanyaction,proceeding,suitorarbitrationarisinginrelationtoanyoftherightsassignedtotheSecurityAgentpursuanttothissecurityandtoenforcesuchrightsinthenameoftheSecurityAgentorofKLBK.

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(viii)SecurityarrangementsforKLBK’sBAIDS(Continued)

Security under the Charge

Allitspresentandfuturerights,titleandinterestinandto:

(a) theProceeds;

(b) theDesignatedAccounts;and

(c) theCreditBalance.

(ix) SecurityarrangementsforBKSPCommonRupeeLoan

ThesecurityarrangementforBKSP’sCommonRupeeLoanareasfollows:

(a) Assignmentofprojectrevenuesi.etollreceivableandotherreceivables.

(b) SubstitutionRightsinfavourofCanaraBanktosubstituteconcessionaireupon30daysnoticeintheeventofdefaultatanypointoftimeduringtheconcession.

(c) EscrowingofprojectedtollcollectionofRs275.57croresovertheconcessionperiod.

(d) FixedDepositequivalentto3monthsofrepaymentobligationtowardsDebtServiceReserveAccount-theDepositshallbecreatedoutof tollcollectionsduring initialrepaymentholidayof6monthsandsurplus ineachof thesubsequentperiods,andshallhavea lien in favourofBankanditistobereleaseduponfullrepaymentoftheloan.

(x) SecurityarrangementsforPLUSBKSPCommercialPaper

TheCommercialPaperissupportedbytheCorporateGuaranteeprovidedbyPEBfortheamountofRs192crorestoguaranteetheperformanceofPLUSBKSP’sobligationsunderitsCommercialPaperprogramme.TheamountpayableundertheguaranteewillbeinUSDequivalenttoRs.

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(xi) SecurityarrangementsforINIPPLCommonRupeeLoan

TheCommonRupeeLoantogetherwithinterest,additionalinterest,defaultinterest,prepaymentpremium,upfrontfees,costs,charges,expensesandothermonieswhatsoeverstipulatedanddueto the lenders inaccordancewith theCommonRupeeLoanAgreementsubject to the termsoftheConcessionAgreementshallbesecuredby:

(a) afirstrankingparipassumortgageonalltheborrower’simmovableassetsandfirstchargebywayofhypothecationonallmoveableassets(includingbutnotlimitedtoallcurrent/non-currentassets)bothpresentandfuture;

(b) a first ranking pari passu charge/assignment on all the intangible assets of the borrowerincluding but not limited to the goodwill, rights, undertakings and uncalled capital bothpresentandfuture;

(c) a negative lien in respect of the sharesheld by the sponsorswhich shall not be less than51% of the total issued and fully paid up equity of the borrower up to 36months fromcommencementoperationdateand thereafter26%of thesharessubject to therebeingnooutstandingeventofdefaultandconditionsstipulatedin3.1.11(i)oftheCommonRupeeLoanAgreementaresatisfied;

(d) afirstrankingparipassuchargeoverallbankaccounts for theborrower includingwithoutlimitation,theEscrowAccount(oranyaccount insubstitutionthereof)andtheDebtServiceReserve Account in all funds from time to time deposited therein and in all PermittedInvestmentsorothersecuritiesrepresentingallamountscreditedtotheEscrowAccountandtheDebtServiceReserveAccountandanyotherbankaccountsoftheborrowerestablishedpursuanttotheprojectdocumentsorotherwise;

(e) afirstrankingparipassuchargeover/assignmentofallprojectdocuments,allguarantees,performance guarantees or bonds, letters of credit thatmay provided by any party to anyprojectdocument in favourof theborrowerandclearancesandall rights, titles,approvals,permits,clearancesand interestsandtheborrower’sright, title, interest,benefitandclaimin,toorundertheprojectdocumentsandclearances;

(f) afirstrankingparipassuchargeover/assignmentofall theborrower’sright, title, interest,benefitandclaimoftheborrowerin,toorundertheinsurancecontracts,insurancepoliciesandtheinsuranceproceeds;

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(xi) SecurityarrangementsforINIPPLCommonRupeeLoan(Continued)

(g) afirstrankingparipassucharge/assignmentofallreceivableandrevenuesoftheborrowerfromtheprojectorotherwise;and

(h) an undertaking to provide equity/provide subordinated debt from the sponsors for anycostoverrun,gap infinancingandanydelay in receiptof thegrant fromNationalHighwayAuthorityofIndia.

38 RETIREMENT bENEfITS

Group

2010 2009

RM’000 RM’000

Group

At1January 15,698 14,071

Recognisedintheincomestatement 1,930 1,803

Underprovisionforpreviousyears – 28

Benefitspaid (83) (204)

At31December 17,545 15,698

PLUS,ELITEandLINKEDUAoperateanunfunded,definedbenefitRetirementBenefitScheme (“theScheme”)fortheirpersonnelwhoseemploymentcontractsweretransferredin1988fromMalaysianHighwayAuthority,pursuanttotheConcessionAgreement.UndertheScheme,eligibleemployeesareentitledtoretirementbenefitsinaccordancewithapre-determinedformulaasfollows:

RetirementBenefitsasat31December=(2 lastdrawnmonthlybasicsalary lengthofservicewiththecompany)–EPFOffset*

* Definedas total employer’s contributions to theEPF,madeat the statutoryemployer’s contribution rateandaccumulatedEPFdividend.

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Theamountrecognisedinthestatementsoffinancialpositionaredeterminedasfollows:

Group

2010 2009

RM’000 RM’000

Presentvalueofunfundeddefinedbenefitobligations 17,545 15,698

Theamountrecognisedintheincomestatementareasfollows:

Currentservicecost 879 834

Interestcost 1,051 949

Amortisationofnetloss – 20

1,930 1,803

Principalactuarialassumptionsused:

2010 2009

% %

Discountrate 6.00 6.00

Expectedrateonsalaryincreases 5.00 5.00

EPFdividendrate 5.00 5.00

TheGroupvalueditsretirementbenefitsobligationinaccordancewiththeactuarialvaluationpreparedbyanindependentactuary.

The amount charged to direct cost of operations and general and administration expenses areRM1,929,437(2009:RM1,771,683)andRM972(2009:RM60,012)respectively.

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39 dEfERREd LIAbILITIES/dEfERREd REvENUE

(a) Deferredliabilities

Deferred liabilitiescomprise fees received inadvance for futuremaintenanceexpenditure tobeincurred, in consideration for right-of-way access granted by PLUS, ELITE, andKLBK to thirdparties,analysedasfollows:

Group

2010 2009

RM’000 RM’000

Amountreceivedinadvance 124,630 117,723

Transferredtoincomestatementstodate (41,554) (34,802)

83,076 82,921

Deferredliabilitiesrealisablewithin12months 7,788 6,920

Deferredliabilitiesrealisableafter12months 75,288 76,001

83,076 82,921

(b) Deferredrevenue

Deferredrevenuerelatestothefollowing:

(i) TollcompensationreceivedbyKLBKfromtheGovernment inrespectofrevision intollratestructure fromyear2005until theexpiryof theconcessionperiod in2026asmentioned inNote3(iv)(b).

Group

2010 2009

RM’000 RM’000

Amountreceivedinadvance 60,590 60,590

Amountrecognised (16,802) (13,607)

43,788 46,983

Deferredrevenuerealisablewithin12months 3,048 3,194

Deferredrevenuerealisableafter12months 40,740 43,789

43,788 46,983

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(b) Deferredrevenue(Continued)

(ii) Consideration received from the toll revenue that is allocated to the points issued underthe Group’s customer loyalty programme that are expected to be redeemed but are stilloutstandingasatreportingdate.

Group

2010 2009

RM’000 RM’000

Amountawarded 3,229 –

Amountredeemed (795) –

Deferredrevenuerealisablewithin12months 2,434 –

40 SUNdRY PAYAbLES ANd AccRUALS

Group Company

Note 2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Sundrypayables (i) 19,975 9,957 4,396 2,931

Profitelementpayablesfor: (ii)

–PLUSSPVSukuk 4,507 4,705 4,507 4,705

–SeniorSukuk 11,734 14,829 – –

–ELITE’sSeafieldSukuk 5,568 5,394 – –

–KLBK’sBAIDS – 4,253 – –

Accruals 53,399 59,357 16,871 20,213

Advance for share capital fromminorityshareholders 26,317 28,085 – –

Amount received for proposeddisposalofCCTW 20,123 – 20,123 –

Others 3,668 580 1,878 389

145,291 127,160 47,775 28,238

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40 SUNdRY PAYAbLES ANd AccRUALS (cONTINUEd)

(i) Payablesarenon-interestbearingandarenormallysettledon30to60days(2009:30to60days)terms.

(ii) Profit element payables are settled in accordancewith the respective borrowings’ repaymenttermsasdisclosedinNotes34,35and36.

41 AMOUNT REcEIvEd fROM THE GOvERNMENT fOR AddITIONAL WORkSGroup

2010 2009

RM’000 RM’000

AmountreceivedfromtheGovernment 680,590 680,590

Add: Cumulativeinterestincome 47,741 47,279

Less: AdditionalWorksexpenditure (705,553) (705,282)

Compensationforlossofinterestincome (3,371) (3,371)

19,407 19,216

On 17November 2006, PLUS executed the Proceeds Account Agreementwith the Government toformalise therights,utilisationandadministrationof theamount received fromtheGovernment fortheAdditionalWorksofRM680.59millionand the interestearned therefrom.Pursuant to theTSCA,the amount shall be utilised solely for the purposes of the AdditionalWorks and togetherwith theinterestearned,havebeendepositedintotheProceedsAccountasdisclosedinNote28.

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Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Dividendincomereceived/receivablefromPLUS – – 485,000 825,000

ManagementfeesreceivedforexpresswayoperationservicesrenderedbytheCompanytoitssubsidiaries – – 108,986 105,606

ManagementfeesrenderedbytheCompanytoitssubsidiary – – 120 –

TERAS’srevenueinrelationtocontractswithsubsidiariesofUEM 3,139 – – –

Incomefromtrainingfeesreceived/receivablefromsubsidiariesofPEB – – 166 205

Trainingfeespaid/payabletoasubsidiaryofUEM 102 – – –

TradepurchasesfromTERASbyasubsidiaryofUEM 253 – – –

ProvisionofinformationtechnologyservicesbyasubsidiaryofPEB(formerlyasubsidiaryofUEM) – 2,953 2,940 2,940

Corporateandadministrativesupportservicespaid/payableto:

–UEM 92 807 92 758

–subsidiariesofUEM 3,860 7,146 1,460 1,591

–anassociateofUEM 600 227 161 137

–asubsidiaryofPEB(formerlyasubsidiaryofUEM) – 304 43 304

AmountspayabletoUEMinrespectofDirector’sremuneration(Note10) 52 70 12 47

Leaserentalincomereceived/receivableinrespectoffibreoptictelecommunicationsfromassociateofKhazanah(Note6) 17,592 16,754 – –

Utilitiesrentalpaid/payableinrespectoftelecommunicationsnetworkfromanassociateofUEM 218 407 – –

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42 SIGNIfIcANT RELATEd PARTY TRANSAcTIONS (cONTINUEd)

Group Company

2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

ExpresswaysdevelopmentexpenditureworksperformedforPEB’ssubsidiariesby:

–UEM – 30,896 – –

–subsidiariesofUEM 234,368 237,607 – –

Expresswaymaintenanceexpenditurepaid/payable

–subsidiariesofUEM 228,483 205,545 – –

–subsidiariesofPEB(formerlysubsidiariesofUEM) – 13,379 – –

AdditionalWorksperformedforPLUSbysubsidiariesofUEM 29,342 27,669 – –

Projectmanagementfeespaid/payabletoasubsidiaryofUEM 770 3,287 – –

NetworkmaintenancemanagementandtechnicalservicesperformedbyasubsidiaryofUEM 18,305 18,254 – –

Commissionreceived/receivableforsaleofTouch‘nGocardsfromanassociateofPEB(formerlyasubsidiaryofUEM) 235 1,676 – –

CommissionfortollcollectionviaTouch‘nGopaid/payabletoanassociateofPEB(formerlyasubsidiaryofUEM) 24,881 21,607 – –

Incomefromrentaloffacilitiesreceived/receivablefrom:

–associatesofUEM 353 411 – –

–asubsidiaryofUEM 21 6 – –

Professionalfeespaid/payabletoSymphonyShareRegistrarsSdnBhd,inwhichadirectoroftheCompany,DatukMohamedAzmanYahya,hasinterest 71 68 71 68

PurchaseofTERASfromUEM(Note19(b)) 44,000 – 44,000 –

PurchaseofTnGfromasubsidiaryofUEM(Note20(a)) 33,407 – 33,407 –

KeymanagementpersonnelremunerationisdisclosedinNote11.

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Group Company

Note 2010 2009 2010 2009

RM’000 RM’000 RM’000 RM’000

Amountauthorisedandcontractedfor (i) 868,091 669,774 57,000 44

Amountauthorisedbutnotcontractedfor 5,802 114,584 – 73,926

Note(i):

Includedintheamountarethefollowing:

(a) amount committed by LMS for land acquisition costs for the Cikampek-Palimanan HighwayprojecttotallingRp524.8billion(equivalenttoRM186.3million);and

(b) amount committed by the Company for the proposed acquisition of interest in PLUS JetpurtotallingRM57million.

44 fINANcIAL RISk MANAGEMENT ObJEcTIvES ANd POLIcIES

TheGroupandtheCompanyareexposedtofinancialrisksarisingfromtheiroperationsandtheuseoffinancialinstruments.Thekeyfinancialrisksincludeinterestraterisk,marketrisk,foreigncurrencyrisk,creditriskandliquidityrisk.

TheBoardofDirectorsreviewsandagreespoliciesandproceduresforthemanagementoftheserisks,whichareexecutedbytheHeadofFinanceDivisionandheadsofdepartmentswithinFinanceDivision.The audit committee provides independent oversight to the effectiveness of the riskmanagementprocess.

The Group has not undertake any derivatives throughout the current and previous financial year.The followingsectionsprovidedetails regarding theGroup’sandCompany’sexposure to theabove-mentioned financial risks and the objectives, policies and processes for themanagement of theserisks.

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44 fINANcIAL RISk MANAGEMENT ObJEcTIvES ANd POLIcIES (cONTINUEd)

(a) InterestRateRisk

TheGroupobtains itsexternalfinancing throughPLUSSPVSukuk,SeniorSukuk,SukukSeries1,SukukSeries 2,SukukSeries 3,SeafieldSukuk,KLBKBAIDS,GovernmentLoans,OverdraftFacilities,TradeFacilities,MaintenanceBondFacilities,CommercialPaperand termloans.TheGroup’sprofitelementforPLUSSPVSukuk,SeniorSukuk,SukukSeries1,SukukSeries2,SukukSeries 3, Seafield Sukuk, KLBKBAIDS, and interest on Government Loan and term loans arebasedonagreedfixedratesrespectively. Intereston theOverdraftFacilities ranges from0.75%to1.50%perannumoverthebaselendingrate.

InformationrelatingtotheGroup’sinterestratesandprofitelementonbondsandborrowingsaredisclosedinNotes7,34and35.

SincetheinterestratesforGroup’sfinancialinstrumentsareeitherfixedrateorinterest-free,theGroup’sprofitandreservesarenotsensitivetothemarketmovementininterestrates.

Theinterest/profitprofileofthefinancialliabilitiesoftheGroupisasfollows:

Group

2010 2009

RM’000 RM’000

Fixedratefinancialliabilities 11,144,358 10,609,267

Interestfreefinancialliabilities 389,916 389,916

11,534,274 10,999,183

Theweightedaverageinterestrate/profitelementperannumandaverageperiodonthefinancialliabilitiesasat31December2010areasfollows:

Group

2010 2009

Weighted average interest rate/profit element (%)

Fixedrate 6.74 6.82

Average period (years)

Fixedrate 7.6 7.9

Interestfree 4.5 5.5

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(a) InterestRateRisk(Continued)

Theinterest/profitprofileofthefinancialassetsoftheGroupisasfollows:

Group

2010 2009

RM’000 RM’000

Fixedratefinancialassets(Notei) 3,656,491 3,141,035

Financialassetsonwhichnointerestisearned(Noteii) 38,412 32,124

3,694,903 3,173,159

Notei

Fixedratefinancialassetsmainlycompriseshortterminvestments,longterminvestments,shorttermdepositsandlongtermdeposits,placedwithlicensedbanksandcorporateissuers.

The short term deposits and short term investments placed with the licensed banks andcorporate issuers inMalaysiaattracted interest/profitelementduring the yearat rates rangingfrom1.50% to 3.80% (2009: 1.50% to 4.50%) per annumwhereas the profit obtained from longterminvestmentsinMalaysiarangesfrom3.30%to7.99%(2009:3.30%to7.99%).

Theshort termandlongtermdepositsof foreignsubsidiariesplacedwiththeirrespective localbanksattractedinterestratesrangingfrom0.05%to8.50%(2009:6.00%to13.30%)perannum.

Noteii

Financialassetsonwhichnointerestisearnedcomprisecashandbankbalances.

(b) MarketRisk

TheGroup holds investment in Commercial Papers/Securities/MediumTermNotes/Bonds. Thevalueofthesecuritiesissubjecttofluctuationsasaresultofchangesinmarketpriceswhetherthose changes are caused by factors specific to the individual security or its issuer or factorsaffecting all securities traded in themarket. The investment inCommercial Papers/Securities/MediumTermNotes/Bondsareheldtomaturity.

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44 fINANcIAL RISk MANAGEMENT ObJEcTIvES ANd POLIcIES (cONTINUEd)

(c) ForeignCurrencyRisk

Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentswillfluctuatebecauseofchangesinforeignexchangerates.

TheGroupandtheCompanyholdcashandcashequivalentsdenominated in foreigncurrenciesfor investment in subsidiaries purposes. At the reporting date, theGroup’s and theCompany’sforeign currency balances (denominated in US Dollars (“USD”) and Indonesia Rupiah (“Rp”))amountedtoRM35,208,110(2009:Nil).

TheGroupisalsoexposedtocurrencytranslationriskarisingfromitsnetinvestmentsinforeignoperationsinMauritius,IndiaandIndonesia.

(d) CreditRisk

Credit risks, or the risk of counterparties defaulting, are controlled by the application of creditlimitsandmonitoringprocedure.TheGrouphasnosignificantconcentrationsofcreditriskasthemajorityofitsdepositsareplacedwithvariousmajorfinancialinstitutionsinMalaysia.

ThetollcompensationrecoverablefromtheGovernmentofMalaysiaisnotexposedtoanycreditrisk toPLUSother than if thereareanyamountsdue from theGovernmentuponexpiry of theConcessionPeriodin2038,whichwillberequiredtobewaivedbyPLUS,asdisclosedinNote3(i)(b).However, the toll compensationarrangement furtherprovides that thepartiesmay ingoodfaith,makenecessary adjustment or variation to the arrangement to restorePLUS’s position ifthereisanychangeinlawthatmaypreventthepartiesfromsuccessfully implementingthetollcompensationarrangement.

(e) LiquidityRisk

The Group’s objectives on liquidity are tomaintain a balance betweenmeeting debt serviceobligationsandcovenants,expresswayscapitalandoperatingexpenditureandmeetingshareholderdistributionexpectations.

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(f) AnalysisOfFinancialInstrumentsByRemainingContractualMaturities

Thetablebelowsummarisesthematurityprofileof theGroup’sandtheCompany’s liabilitiesatthereportingdatebasedonthecontractualundiscountedrepaymentobligations:

Group

2010

On demand or within

1 year

between 1 and

2 years

between 2 and

5 yearsAfter

5 years Total

RM’000 RM’000 RM’000 RM’000 RM’000

PLUSSPVSukuk 35,959 36,058 740,019 1,196,509 2,008,544

SeniorSukuk 665,050 434,638 924,725 214,950 2,239,363

SukukSeries1 400,000 400,000 1,200,000 260,000 2,260,000

SukukSeries2 – – – 2,410,000 2,410,000

SukukSeries3 – – – 3,675,000 3,675,000

SeafieldSukuk 63,336 63,510 190,530 1,399,077 1,716,453

KLBKBAIDS 13,960 14,760 57,400 209,700 295,820

GovernmentLoans – – 888,422 1,617,640 2,506,062

TermLoans 29,617 26,601 91,036 189,728 336,982

CommercialPaper 131,844 – – – 131,844

1,339,766 975,566 4,092,132 11,172,604 17,580,068

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45 fAIR vALUE Of fINANcIAL INSTRUMENTS

Thefollowingarethecarryingamountsandfairvaluesofcertainfinancial instrumentsof theGroupatreportingdate:

Group

2010 2009

NotecarryingAmount

fairvalue

carryingAmount

fairvalue

RM’000 RM’000 RM’000 RM’000

PLUSSPVSukuk* 34(a)(i) (1,433,561) (1,590,800) (1,381,726) (1,482,470)

SeniorSukuk* 34(a)(ii) (1,911,734) (2,047,820) (2,464,829) (2,649,405)

SukukSeries1 34(a)(iii) (1,875,563) (2,016,876) (1,764,492) (1,922,102)

SukukSeries2 34(a)(iv) (1,507,544) (1,788,930) (1,411,799) (1,634,352)

SukukSeries3 34(a)(v) (1,821,749) (2,136,700) (1,282,307) (1,400,577)

SeafieldSukuk* 34(a)(vi) (867,705) (1,099,453) (864,960) (1,016,786)

KLBKBAIDS* 34(a)(vii) (176,730) (210,910) (180,020) (202,573)

Governmentloans 35(a) (1,646,719) (1,623,849) (1,551,900) (1,530,654)

AmountduetoGovernment 35(c)(i) (38,096) (37,509) (38,096) (37,367)

Termloans(non-current) 35 (178,086) (178,086) (102,384) (100,540)

Investmentsecurities 22 145,489 145,776 159,192 158,483

Shortterminvestments 27 49,933 50,287 129,936 128,923

* The carrying amounts for PLUSSPVSukuk, Senior Sukuk, Seafield Sukuk andKLBKBAIDS are inclusive ofprofitelementsasdisclosedinNote40(ii)onsundrypayables.

Thecarryingamountsforthecurrentportionofthetermloansarereasonableapproximationsoftheirfairvaluesduetoinsignificantimpactofdiscounting.

The carrying amounts of trade and other payables, trade and other receivables and the currentamountsowingby/(to)subsidiaries,relatedcompaniesandimmediateholdingcompanyarereasonableapproximationoffairvaluesduetotheirshort-termnature.

The fair values of non-current amount owing by/(to) subsidiaries and non-current amount owingto immediate holding company are estimated by discounting expected future cash flows atmarketincrementallendingrateforsimilartypesoflendingorborrowingatthereportingdate.

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TheprimaryobjectiveoftheGroup’scapitalmanagement istomaintainanoptimalcapitalstructureinordertosupportitsbusinessactivitiesandenhanceitsshareholders’value.

TheGroupmanagesitscapitalstructureandmakesadjustmentstoit,inlightofchangesineconomicenvironment,riskinherentinitsbusinessoperationsorexpansionplansoftheGroup,whilstensuringfullcompliancewith itsrelevantfinancingcovenants.The initiatives inmanaging theGroup’scapitalstructure include issuance of new capital or debt securities, refinancing of existing borrowings,returningcapitaltoshareholdersoradjustingdividendpaymenttoshareholders.

47 SIGNIfIcANT EvENTS ANd EvENT OccURRING AfTER REPORTING dATE

Other thanasdisclosedas inNotes19,20and21 to thefinancialstatements, the followingare thesignificantandsubsequenteventswhichhaveoccurred.

(a) ProposedFourLaningofJetpur-SomnathSectionofNH-8DfromKm0toKm127.6intheStateofGujarat,India

On 20 September 2010, an unincorporated consortium consisting of PEB and its joint biddingpartner,IDFCProjectsLimited(“IP”)(“Consortium”)hason14September2010,receivedaletterdated 13 September 2010 from theNational Highways Authority of India (“NHAI”) informingthat the Consortium haswon the tender bid for the proposed Four Laning of Jetpur-SomnathSectionofNH-8DfromKm0toKm127.6intheStateofGujarat,India,tobeexecutedonDesign,Built,Finance,OperateandTransfer (“DBFOT”)basis (“ProposedProject”).TheConsortiumhasaccordinglyrevertedtoNHAIon20September2010acceptingtheoffertoundertaketheProposedProject.

On 16November 2010, PEB subscribed to the 26% equity interest in Jetpur-SomnathHighwayLimited(“JSHL”),viaPLUSJetpur,toundertaketheProposedProject.However,on23December2010, in compliancewith the Request for Proposal (“RFP”) documentation for this ProposedProject, NHAI has requested that a new special purpose vehicle to be incorporated,wherebyequity investment by PEB shall be direct. As at 31 December 2010, JSHL remains as PEB’sassociatecompany.

On11January2011,JetpurSomnathTollwaysLimited(“JSTL”),anewspecialpurposevehiclewasincorporatedunderthe lawofRepublicof India toundertaketheProposedProject.ThepaidupcapitalofJSTL isRs10 lakhscomprising100,000sharesofRs10eachofwhichPEBholds26%andtheremaining74%sharesareheldbyIPandsix(6)othernominalsubscribers.On7February2011,JSTLandNHAIhaveenteredintotheconcessionagreementfortheProposedProject.

The Proposed Project is a section of National Highway 8Dwhich starts at Jetpur and endsat Somnath, with total length of 127.6 kilometres. The concession shall be for a period of 30years from thedateof theproposedexecutionof the relevant concessionagreement, includingconstructionperiodofapproximately30months.

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47 SIGNIfIcANT EvENTS ANd EvENT OccURRING AfTER REPORTING dATE (cONTINUEd)

(a) ProposedFourLaningofJetpur-SomnathSectionofNH-8DfromKm0toKm127.6intheStateofGujarat,India(Continued)

The estimated total cost of the project at present is approximatelyRs950 crores (equivalent toapproximatelyRM660million)andthefundingdetailsarebeingfinalised.

(b) OffertoacquirethebusinessandundertakingincludingassetsandliabilitiesofPEBbyUEMandEmployeesProvidentFundBoard

On15October 2010, theBoardofDirectors ofPEB received a letter fromUEMandEmployeesProvidentFundBoard (“EPF”) (“JointOfferors”),whichsetsoutanoffer toacquire thebusinessandundertaking,includingallassetsandliabilitiesofPEBatanaggregatepurchaseconsiderationofRM23billion(“PurchaseConsideration”) (“Offer”).Basedonthe issuedandpaid-upcapitalofPEBasat14October2010,thePurchaseConsiderationrepresentsaconsiderationofRM4.60perordinarysharesofRM0.25eachinPEB.

FurthertothediscussionsheldbetweenPEBandtheJointOfferors,theBoardhadon9November2010receivedarevised letterofofferwhichshallsupersede theearlier letterofofferdated15October2010(“OfferLetter”).

The Joint Offerors shall incorporate a private limited company to undertake this Offer (“SPV”),withUEMandEPFeachholding51%and49%equityinterestrespectivelyintheSPV.

After the disposal of thePEBBusiness pursuant to theOffer, the Joint Offerors proposed thatPEB,subject toobtainingall requisiteapprovals, returnallproceeds fromthedisposal thatareattributable to the entitled shareholders, being the remaining shareholders of PEB (other thanEPF, UEM and Khazanah) including PEB’s shares held by Khazanahwhich form part of theexchange property, via a special dividend and selective capital repayment exercise (collectivelyreferredtoasthe“ProposedDistribution”).

On 20December 2010, the Board of Directors of PEB received a letter from JelasUlung SdnBhd (“JelasUlung”)whichsetsoutanoffer toacquirePEBBusinessatanaggregatepurchaseconsiderationofRM26billion,representingRM5.20perordinaryshareofRM0.25eachinPEB.

The scheduledExtraordinaryGeneralMeeting (“EGM”)washeldon23December2010and theshareholdershadapproved theadjournmentof theEGM tobeheldona laterdate.TheBoard,save for the Interested Directors, also announced that it will not consider any offer for PEBBusiness received after 5.00 p.m. on 10 January 2011 (“Final Deadline”). All offers submittedby theFinalDeadlinearealsosubject to theconditionsasannounced toBursaMalaysiaon21December 2010which include: (i) remit a cash deposit of RM50million into an account to bedesignatedbyPEB;and(ii)submitunconditionalwrittenconfirmation(s)addressedtoPEB,frominstitution(s)andintheform,whichareacceptabletoPEB,thattheofferorhasthefinancialabilitytoundertakeandcomplete itsproposedacquisitionof thePEBBusiness inaccordancewiththetermsofitsoffer(“Financiers’Letter”).

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(b) OffertoacquirethebusinessandundertakingincludingassetsandliabilitiesofPEBbyUEMandEmployeesProvidentFundBoard(Continued)

On 10 January 2011, being the Final Deadline, therewere no new offers received by PEB andonlyUEMandEPFhadremittedthecashdepositofRM50millionandsubmittedtheFinanciers’Letter.

Inviewoftheabove,theadjournedEGMwasheldon23February2011wherebytheshareholdersapprovedtheProposedDisposalandtheProposedDistribution.

48 SEGMENT INfORMATION

In the prior year’s audited consolidated financial statement, the basis of segmentation was ongeographicalsegment.Inthecurrentfinancialyearended31December2010,thebasisofsegmentationhas been changed to operating segments based on information reported internally to theBoard ofDirectorsoftheCompany.TheGroupisorganisedintolegalentitiesbasedontheconcessionsofthehighwaysandseparatebusinessasheldbyeachentity.PLUSisthelargestcontributortotheGroupintermsofrevenue,profitfortheperiodandtotalassetsandhenceisreportedasaseparateoperatingsegmentwhilsttherestarereportedas‘Others’.

Operatingsegmentinformationforthecurrentfinancialyearended31December2010isasfollows:

PLUS Others Total

RM’000 RM’000 RM’000

2010

Revenue 2,910,948 440,533 3,351,481

Profit/(loss)fortheyear 1,367,457 (66,673) 1,300,784

Totalassets 14,350,671 4,897,484 19,248,155

2009

Revenue 2,824,327 354,695 3,179,022

Profit/(loss)fortheyear 1,262,509 (77,397) 1,185,112

Totalassets 13,966,480 4,400,997 18,367,477

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48 SEGMENT INfORMATION (cONTINUEd)

Inaddition, theGroupoperate in threegeographicalsegments,basedonthe locationof theGroup’sassets:

(i) Malaysia – the operations in this area are principally investment holding and provision ofexpresswayoperationservices.

(ii) IndiaandMauritius–theoperationinthisareaareinvestmentholdingandexpresswayoperationservices.

(iii) Indonesia–theoperationinthisareaisexpresswayoperationservices.

The following table provides an analysis of the Group’s carrying amount of non-current assets,analysedbygeographicalsegments:

Non-current Assets

2010 2009

RM’000 RM’000

Malaysia 12,150,402 12,221,930

IndiaandMauritius 460,329 200,970

Indonesia 87,617 74,479

12,698,348 12,497,379

Non-current assets information presented above consist of concession assets, property, plant andequipmentandintangibleassetsaspresentedintheconsolidatedstatementsoffinancialposition.

Noanalysisonrevenueandresultsbygeographicalsegments ispreparedas theGroup isprimarilyengaged in theoperationandmaintenanceof toll roadsandexpressways inMalaysia.Revenueandresults for the current and prior financial years of the subsidiaries located outsideMalaysia areinsignificanttotheGroup’sresultstorenderseparatereporting.

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The presentation and classification of items in the current year financial statements have beenconsistentwith thepreviousfinancialyearexcept forcertaincomparativeamountswhichhavebeenreclassifiedtoconformwithcurrentyear’spresentation.

As Restated Reclassified

As Previously

Stated

RM’000 RM’000 RM’000

Income statements:

Generalandadministrationexpenses (73,196) (4,458) (77,654)

Financecosts (700,188) 4,458 (695,730)

Statements of financial positions:

Assets:

Property,plantandequipment 76,134 (26,988) 49,146

Prepaidlandleasepayments – 26,988 26,988

Liabilities:

Otherlongtermpayables – 97 97

Sundrypayablesandaccruals 127,160 (97) 127,063

Equity:

Capitalreserve – 461,138 461,138

Mergerreserve – 298,834 298,834

Otherreserves 752,308 (759,972) (7,664)

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50 SUPPLEMENTARY INfORMATION – bREAkdOWN Of RETAINEd EARNINGS INTO REALISEd ANd UNREALISEd

Thebreakdownof the retainedearningsof theGroupandof theCompanyasat 31December2010intorealisedandunrealisedearningsispresentedasfollows,inaccordancewiththedirectiveissuedbyBursaMalaysiaSecuritiesBerhaddated25March2010andpreparedinaccordancewithGuidanceonSpecialMatterNo.1,DeterminationofRealisedandUnrealisedProfitsorLosses in theContextofDisclosurePursuant toBursaMalaysiaSecuritiesBerhadListingRequirements,as issuedby theMalaysianInstituteofAccountants:

Group RM’000

Company RM’000

TotalretainedearningsoftheCompanyanditssubsidiaries

Realised 4,917,278 40,232

Unrealised (975,337) 1,186

3,941,941 41,418

Totalshareofretainedearningsfromassociate

Realised 2,459 –

Unrealised – –

3,944,400 41,418

Add:Consolidationadjustments 255,127 –

Retainedearningsasperfinancialstatements 4,199,527 41,418

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On29April2010,thePLUSExpresswaysBerhadGroupsoughtapprovalforashareholders’mandateforthePLUSExpresswaysBerhadGrouptorenewandenterintonewRecurrentTransactions(asdefinedintheCirculartoShareholdersdated5April2010)intheirordinarycourseofbusinesswithrelatedparties(“ShareholdersMandate”)asdefinedinChapter10oftheBursaMalaysiaSecuritiesBerhadMainMarketListingRequirement.ThebreakdownoftheactualvaluetransactedforthesaidRecurrentTransactionsmadefromthedatetheShareholdersMandatecameintoeffectupto30April2011areasfollows:-

RM

1. ConstructionandotherrelatedworksforthewideningofcertainstretchesoftheExpresswayandthemodificationoftheExpresswaybetweenJelapangandIpohSelatanTollPlaza(“AdditionalWorks”)byUEManditssubsidiariesandassociatedcompaniesforPLUS.

NIL

2. ProvisionofmaintenanceworksandmaintenancemanagementservicesinrelationtotheExpresswaysanditsAncillaryFacilitiesbyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

42,316,143.86

3. ConstructionandotherrelatedworksinrelationtotheExpresswaysanditsAncillaryFacilitiesbyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

NIL

4. ProvisionofITrelatedservices,maintenanceandupgradingworksandsupplyofITequipmentandsoftware,electricalandtollequipmentsparepartsinrelationtotheExpresswaysandAncillaryFacilitiesbyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

1,503,230.00

5. ProvisionofservicesandaccessoriesinrelationtoTouch‘nGoCardsSystemandSmartTAGbyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

631,927.68

6. ProvisionofupgradingworksinrelationtotheExpresswaysanditsAncillaryFacilitiesbyUEMBuildersanditssubsidiariesandassociatedcompaniesforPLUSExpresswaysGroup.

24,078,850.51

7. ConstructionandotherrelatedworksinrelationtotollroadprojectsinIndiabyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

NIL

8. ProvisionofprojectmanagementservicesinrelationtotheExpresswaysanditsAncillaryFacilitiesbyUEManditssubsidiariesandassociatedcompanies.

NIL

9. ProvisionofservicescarriedoutalongtheExpresswaysinrelationtowastedisposalmanagementbyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

NIL

10. ProvisionofSupportServices,suchasOperationandMaintenanceServicesinrelationtohighwayoperationsbyPLUSExpresswaystoPLUSBKSP.

73,944.43

11. GrantofaccesstoTelekomanditssubsidiariesandassociatedcompaniestoentertheExpresswaysanditsAncillaryFacilitiesforthecarryingoutofrelevantworksinrelationtotelecommunication.

40,000.00

12. GrantofaccesstoTNBanditssubsidiariesandassociatedcompaniestoentertheExpresswaysanditsAncillaryFacilitiesforthecarryingoutofrelevantworksinrelationtopowersupply.

96,000.00

13. ProcurementforthepurposeofmaintenanceandupgradingoftheExpresswaysbyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

NIL

14. GrantofaccesstoTIMEanditssubsidiariesandassociatedcompaniestoentertheExpresswaysanditsAncillaryFacilitiesforthecarryingoutofrelevantworksinrelationtotelecommunication.

40,000.00

15. TenancyAgreementforaperiodoftwo(2)yearswithanoptiontorenewforafurtherperiodofone(1)yearforthepurposeofPLUSExpresswaysGroup’sBusinessContinuityPlanbyTIMEanditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

NIL

16. ProjectmanagementandITrelatedservicesinrelationtotollroadprojectsinIndonesiabyUEManditssubsidiariesandassociatedcompaniestoPLUSExpresswaysGroup.

NIL

17. Provisionoftheoverallmanagementoftollcollection,operationsandmaintenanceinrelationtotheBhiwandi-Kalyan-ShilPhataHighwayandvariousconsultingservicesbyCMCLtoPLUSBKSP.

NIL

RECU

RREN

T RE

LATE

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PARTYTRAN

SACT

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RELA

TION

ShIP

WIT

h

REL

ATED

PAR

TIES

Therelationshipoftherelatedpartiesasat30April2011isasfollows:-

No. Names of Related Party Relationship

1. UEManditssubsidiariesandassociatedcompanies

UEMisamajorshareholderofPLUSExpresswaysBerhad.UEMalsohasindirectinterestinPLUSheldthroughPLUSExpresswaysBerhad.

2. UEMBuildersBerhadanditssubsidiariesandassociatedcompanies

UEMBuildersisawholly-ownedsubsidiaryofUEM.UEMalsohasindirectinterestinPROPELheldthroughUEMBuilders.

3. TelekomMalaysiaBerhad(“Telekom”)anditssubsidiariesandassociatedcompanies

KhazanahisamajorshareholderofTelekom.UEMisawholly-ownedsubsidiaryofKhazanah.

4. TenagaNasionalBerhad(“TNB”)anditssubsidiariesandassociatedcompanies

KhazanahisamajorshareholderofTNB.

5. TIMEanditssubsidiariesandassociatedcompanies

UEMisamajorshareholderofTIME.TIMEisanassociatecompanyofUEM.

6. PLUSBKSPTollLimited(“PLUSBKSP”) PLUSExpresswayshasdirectandindirectinterestinPLUSBKSPthroughitswholly-ownedsubsidiary,PLUSKalyan(Mauritius)PrivateLimited.

7. ConceptManagementConsultingPrivateLimited(“CMCL”)

CMCLisashareholderofPLUSBKSP.

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AuthorisedCapital :RM2,500,000,000.00IssuedandPaid-Up :RM1,250,000,000.00ClassofShares :OrdinarySharesof25seneachNo.ofShareholders :22,944VotingRights :OneVoteperOrdinaryShare

Size of holdings No. of holders % No. of Shares held %

Lessthan100 641 2.79 16,888 0.00

100to1,000 11,397 49.67 10,821,947 0.22

1,001to10,000 9,246 40.30 34,013,829 0.68

10,001to100,000 1,187 5.17 35,464,312 0.71

100,001tolessthan5%ofissuedshares 470 2.05 1,747,605,701 34.95

5%andaboveofissuedshares 3 0.01 3,172,077,323 63.44

Total 22,944 100.00 5,000,000,000 100.00

SUbSTANTIAL SHAREHOLdERS asat12May2011:(AspertheRegisterofSubstantialShareholders)

Name Direct holdings % Indirect holdings %

UEMGroupBerhad 1,924,230,835 38.48 – –

KhazanahNasionalBerhadExemptAn 690,663,376 13.81 a1,924,230,835 38.48

CitigroupNominees(Tempatan)SdnBhdEmployeesProvidentFundBoard

557,183,112 11.14 – –

Note: a Held via UEM Group Berhad

dIREcTORS dIREcT ANd INdIREcT INTEREST IN THE cOMPANY ANd ITS RELATEd cORPORATIONS AS PER THE REGISTER Of dIREcTORS’ SHAREHOLdINGSIn the company – PLUS Expressways berhad

Name of DirectorNo. of shares of

RM0.25 each %

TanSriDato’MohdSheriffMohdKassim 55,000 *

Dato’IzzaddinIdris – –

Dato’NoorizahHjAbdHamid 20,000 *

HassanJa’afar 40,000 *

TanSriDatukKRavindran 40,000 *

DatukMohamedAzmanYahya 40,000 *

QuahPohKeat – –

DatukSeriPanglimaMohdAnnuarZaini 15,000 *

Dato’SeriIsmailShahudin – –

* less than 0.01%

ANAL

YSIS

OF

ShAR

EhOL

DIN

GSAS

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IN ITS RELATEd cORPORATIONSSaveforthefollowing,noneoftheDirectorsoftheCompanyhasanyinterest,directorindirect,insharesinitsrelatedcorporations:

No. of ordinary shares of RM0.50 each

Name of Director Direct % Indirect %

UEM Land Holdings berhad

TanSriDato’MohdSheriffMohdKassim 35,000 * – –

Dato’SeriIsmailBinShahudin 7,032 * – –

* less than 0.01%

LIST Of PLUS EXPRESSWAYS’ TOP 30 HOLdERS asat12May2011

No. Name holdings %

1. UEMGroupBerhad 1,924,230,835 38.48

2. KhazanahNasionalBerhadExempt An

690,663,376 13.81

3. CitigroupNominees(Tempatan)SdnBhdEmployees Provident Fund Board

557,183,112 11.14

4. AmanahrayaTrusteesBerhadSkim Amanah Saham Bumiputera

230,000,000 4.60

5. KumpulanWangPersaraan(Diperbadankan) 181,352,612 3.63

6. AmanahrayaTrusteesBerhadAmanah Saham Malaysia

93,637,000 1.87

7. KhazanahNasionalBerhad 85,849,287 1.72

8. ValuecapSdnBhd 85,700,000 1.71

9. AmanahrayaTrusteesBerhadAmanah Saham Wawasan 2020

60,944,000 1.22

10. CartabanNominees(Asing)SdnBhdExempt An For State Street Bank & Trust Company (West CLT OD67)

49,186,515 0.98

11. PertubuhanKeselamatanSosial 48,293,597 0.97

12. HSBCNominees(Asing)SdnBhdBBH And Co Boston for Matthews Asian Growth And Income Fund

44,171,359 0.88

13. AmanahrayaTrusteesBerhadAmanah Saham Didik

38,809,400 0.78

14. LembagaTabungHaji 35,471,800 0.71

15. MalaysiaNominees(Tempatan)SendirianBerhadGreat Eastern Life Assurance (Malaysia) Berhad (PAR1)

35,366,400 0.71

16. HSBCNominees(Asing)SdnBhdBBH And Co Boston for Merill Lynch Global Allocation Fund

30,494,461 0.61

17. AmanahrayaTrusteesBerhadAS 1 Malaysia

30,000,000 0.60

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No. Name holdings %

18. MaybanNominees(Tempatan)SdnBhdMayban Trustees Berhad For Public Ittikal Fund (N14011970240)

26,462,000 0.53

19. CitigroupNominees(Tempatan)SdnBhdEmployees Provident Fund Board (Nomura)

26,000,000 0.52

20. HSBCNominees(Asing)SdnBhdBBH And Co Boston For Vanguard Emerging Markets Stock Index Fund

23,458,182 0.47

21. PermodalanNasionalBerhad 20,496,800 0.41

22. CitigroupNominees(Tempatan)SdnBhdExempt An For Prudential Fund Management Berhad

18,826,800 0.38

23. CitigroupNominees(Tempatan)SdnBhdExempt An For American International Assurance Berhad

17,811,200 0.36

24. HSBCNominees(Asing)SdnBhdExempt An For JPMorgan Chase Bank, National Association (U.A.E)

15,898,905 0.32

25. HSBCNominees(Asing)Sdn.Bhd.Exempt An for Morgan Stanley & Co. International PLC (IPB Client ACCT)

13,972,900 0.28

26. OCBCBank(Malaysia)BerhadAs Beneficial Owner (ELCI-TRE)

13,011,100 0.26

27. CartabanNominees(Asing)SdnBhdGovernment of Singapore Investment Corporation Pte Ltd For Government Of Singapore (C)

12,998,300 0.26

28. DB(Malaysia)Nominee(Asing)SdnBhdExempt An For Deutsche Bank AG London (Prime Brokerage)

12,973,389 0.26

29. HSBCNominees(Asing)Sdn.Bhd.Exempt An For Morgan Stanley & Co. Incorporated (Client)

12,935,506 0.26

30. HSBCNominees(Asing)SdnBhdExempt An For The Bank Of New York Mellon (Mellon Acct)

12,712,787 0.25

AN

ALY

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LIST

OF

PROP

ERTIES

No.

Description and Existing Usage of Properties Address

Age of Building

Land Area and Status

Date of Acquisition/Last Revaluation

Net Book Value as at 31 December 2010(RM’000)

1 Ayer Keroh landFutureCommercialDevelopment

PartofMukimofGadek,MukimofPegoh&MukimofMelakaPindahDistrictofAlorGajahStateofMelaka

Notapplicable

338acresLeaseholdof99yearsendingAugust2106

August2007^Revaluationdoneon23December2006

26,707

2 ShoplotsVacant

No.4&6JalanHangLekiuTamanSkudaiBaruSkudaiJohorBahruJohor

16years 3,080sqmFreehold

12January1993 396

3 Double storey terrace houseStaffaccommodation

No.72JalanSS7/30TamanKelanaIndahKelanaJayaSelangor

17years 121sqmLeaseholdof99yearsending27September2091

15April1997^Revaluationdoneon2October2006

176


No.46JalanSS7/30TamanKelanaIndahKelanaJayaSelangor

17years 121sqmLeaseholdof99yearsending27September2091

1August1996^Revaluationdoneon13May2004

171


No.43JalanSR6/4TamanKudaEmasSection6SerdangJayaSelangor

16years 133sqmLeaseholdof99yearsending31March2092

5January1996^Revaluationdoneon13May2004

161





161





161

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No.


Age of Building




8 Apartment unitStaffaccommodation

1508BlokDNo.2JalanSS7/2647301PetalingJayaSelangor

14years 125sqmLeaseholdof99yearsending13April2089

7December1995^Revaluationdoneon24April2003

155


14Jalan3/38BTamanSPPKSegambutKualaLumpur

17years 195sqmFreehold

28November1996^Revaluationdoneon21March2003

148


68Jalan3/38BTamanSPPKSegambut,KualaLumpur

17years 130sqmFreehold

12June1996^Revaluationdoneon21March2003

148


No.87JalanMahkota2BandarBaruKlangSelangor

15years 130sqmLeaseholdof99yearsending8May2093

26December1995^Revaluationdoneon12July2003

145





145




26December1995^Revaluationdoneon28October2004

145





145


No.15JalanKayak13/25TTDI,ShahAlamSelangor

11years 120.75sqmLeaseholdof99yearsending1November2092

16December1996^Revaluationdoneon31March2005

138

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No.


Age of Building




16 Double storey terrace houseStaff accommodation



16February1996^Revaluationdoneon5July2004

138



11years 120.75sqmLeaseholdof99yearsending28December2084

16February1996^Revaluationdoneon13May2004

138




16February1996^Revaluationdoneon13May2004

138

19 Apartment unitStaffaccommodation

1303BlokDNo.2JalanSS7/2647301PetalingJayaSelangor

14years 100sqmLeaseholdof99yearsending13April2089

7December1995^Revaluationdoneon5March2003

128

20 Single storey terrace houseStaffaccommodation

No.33JalanRawa21TamanPerlingJohorBahruJohor

24years 155.33sqmFreehold(Bumiputrarestricted)

1November1996^Revaluationdoneon3January2008

106


No.35JalanRawa21TamanPerlingJohorBahruJohor

24years 155.33sqmFreehold(Bumiputrarestricted)

1November1996^Revaluationdoneon3January2008

106


No.1443Jalan1/10TamanSenaiUtamaJohorBahruJohor

12years 143sqmFreehold(Bumiputrarestricted)

29August1996^Revaluationdoneon11July2007

82

Note:

* Revaluation was done on the properties by the Stamp Duty office/valuation office for the purpose of determining the stamp duty for transfer documents.

TheaforesaidpropertiesusedasstaffaccommodationareforProjekLebuhrayaUtara-SelatanBerhad’sfrontlinerswhoworkatthetollplazas.

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List of Land and Landed Properties by Location and by company

Location No. of Properties Land Area Net Book Value

freehold Leasehold

Land

acres (RM’000)

PEb

Melaka – – 338 26,707

Landed Properties

Unit Unit sqm (RM’000)

PLUS

Selangor 2 13 1,583 2,245

KualaLumpur 2 – 260 296

Johor 3 – 454 294

LINkEdUA

Johor 2 – 286 396

9 13 2,583 3,231

LIST

OF

PROPER

TIES

(CO

NTI

NU

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GROU

P

DIREC

TORYPLUS EXPRESSWAYS bERHAd

MenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsanMalaysiaT+60378016666/76664666F+60378016600/76664400www.plus.com.my

PROJEk LEbUHRAYA UTARA-SELATAN bERHAdMenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsanMalaysiaT+60378016666/76664666F+60378016600/76664400www.plus.com.my

EXPRESSWAY LINGkARAN TENGAH SdN bHdMenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsanMalaysiaT+60378016666/76664666F+60378016600/76664400www.plus.com.my

LINkEdUA (MALAYSIA) bERHAd MenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsanMalaysiaT+60378016666/76664666F+60378016600/76664400www.plus.com.my

kONSORTIUM LEbUH RAYA bUTTERWORTH-kULIM (kLbk) SdN bHdMenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsanMalaysiaT+60378016666/76664666F+60378016600/76664400www.plus.com.my

PLUS HELIcOPTER SERvIcES SdN bHdMenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsanMalaysiaT+60378016666/76664666F+60378016600/76664400www.plus.com.my

TERAS TEkNOLOGI SdN bHdMenaraKorporat,PersadaPLUSPersimpanganBertingkatSubangKM15,LebuhrayaBaruLembahKlang47301PetalingJayaSelangorDarulEhsanMalaysiaT+60378016666/76664666F+60378016600/76664400www.terasworld.com

PLUS kALYAN (MAURITIUS) PRIvATE LIMITEd c/o Multiconsult LimitedRogersHouse5,PresidentJohnKennedyStreetPortLouis,MauritiusT+2304052000F+2302125265/2080572

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GR

OU

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DIREC

TORY

(CO

NTI

NU

ED) PLUS PLAZA (MAURITIUS) PRIvATE LIMITEd

c/o Multiconsult LimitedRogersHouse5,PresidentJohnKennedyStreetPortLouis,MauritiusT+2304052000F+2302125265/2080572

PLUS JETPUR (MAURITIUS) PRIvATE LIMITEd c/o Multiconsult LimitedRogersHouse5,PresidentJohnKennedyStreetPortLouis,MauritiusT+2304052000F+2302125265/2080572

PLUS bkSP TOLL LIMITEd413,BWing,ShreeNandDham4thFloor,Sector11,CBDBelapurNaviMumbai400614IndiaT+912227573777F+912227573767

INdU NAvAYUGA INfRA PROJEcTS PRIvATE LIMITEd2ndFloor,J.C.TowerKarurBypassRoadTrichy-620018TamilNaduIndiaT+914314024648F+914314021648

PT LINTAS MARGA SEdAYAJICibitungIINo.34KebayoranBaruJakarta12170IndonesiaT+62217245870F+62217222436

PT cIMANGGIS cIbITUNG TOLLWAYSWismaBakrie1Lantai17Jl.HR.RasunaSaidKav.B2Jakarta12920IndonesiaT+622152920266F+622152920837

FORM

OF

PROX

Y

No.ofOrdinarySharesHeld

CDSAccountNo.

I/We(PLEASEUSEBLOCKLETTERS)

of(fulladdress)

beingamember/membersofPLUS EXPRESSWAYS BERhAD,herebyappoint

of

orfailinghim,theChairmanoftheMeetingasmy/ourproxytovoteforme/usandonmy/ourbehalfattheNinthAnnualGeneralMeetingoftheCompanytobeheldattheBanquetHall,MenaraKorporat,PersadaPLUS, Persimpangan Bertingkat Subang, KM15, Lebuhraya Baru Lembah Klang, 47301 Petaling Jaya,SelangorDarulEhsanonWednesday,29June2011at2.30p.m.

My/Ourproxyistovoteasindicatedbelow:(Please indicate with a “ ” or “ ” in the boxes 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 discretion.)

for Against

Resolution1 To re-elect the followingDirectors retiring in accordancewithArticle76oftheCompany’sArticlesofAssociation:

i) TanSriDatukK.Ravindran

Resolution2 ii) DatukSeriPanglimaMohdAnnuarZaini

Resolution3 iii) QuahPohKeat

Resolution4 To re-appoint Tan Sri Dato’Mohd SheriffMohd KassimretiringinaccordancewithSection129(6)oftheCompaniesAct,1965.

Resolution5 ToapprovetheDirectors’remuneration.

Resolution6 To re-appointMessrs Ernst& Young as Auditors and toauthorisetheDirectorstofixtheirremuneration.

Resolution7 To approve the Proposed Renewal of Shareholders’Mandate for Recurrent Related Party Transactions of aRevenueorTradingNature.

Resolution8 To approve the Proposed NewMandate for AdditionalRecurrent Related Party Transactions of a Revenue orTradingNature.

Datedthis dayof 2011.

Signature/Seal

NOTES

1. Everymemberisentitledtoappointaproxyorinthecaseofacorporation,toappointarepresentativetoattendandvoteinhisplace.AproxymaybutneednotbeamemberoftheCompanyandtheprovisionofSection149(1)(b)oftheCompaniesAct,1965neednotbecompliedwith.

2. Tobevalid,thisoriginalformofproxydulycompletedmustbedepositedattheShareRegistrar’soffice,SymphonyShareRegistrarsSdnBhd,Level6,SymphonyHouse,BlockD13,PusatDaganganDana1,JalanPJU1A/46,47301PetalingJaya,Selangor,notlessthan48hoursbeforethetimeofholdingthemeeting.

3. Theinstrumentappointingaproxyshallbeinwritingunderthehandoftheappointerorhisattorneydulyauthorisedinwritingorifsuchappointerisacorporation,underitscommonsealorunderthehandofitsattorney.

4. Amemberholdingone thousand (1,000)ordinarysharesor lessmayappointonlyone (1)proxy toattendandvoteatageneralmeetingwhoshallrepresentallthesharesheldbysuchmember.Amemberholdingmorethanonethousand(1,000)ordinarysharesmayappointuptoten(10)proxiesto attend and vote at the samemeeting and each proxy appointed shall represent aminimumof one thousand (1,000) ordinary shares.Where amemberappointsone(1)ormoreproxiestoattendandvoteatthesamemeeting,suchappointment(s)shallbeinvalidunlessthememberspecifiestheproportionofhisshareholdingtoberepresentedbyeachproxy.

5. Ifthisformofproxyisreturnedwithoutanyindicationastohowtheproxyshallvote,theproxywillvoteorabstainashedeemsfit.

6. Ifnonameisinsertedinthespaceprovidedforthenameofyourproxy,theChairmanofthemeetingwillactasyourproxy.

TheShareRegistrar’sOfficeSymphony Share Registrars Sdn BhdLevel6,SymphonyHouse,BlockD13,PusatDaganganDana1,JalanPJU1A/46,47301PetalingJaya,Selangor,Malaysia

STAMP

1stfoldhere

2ndfoldhere