Quality - UAC Berhad

Directors’ ReportFor The Financial Year Ended 31 December 2005DIRECTORS' BENEFITSDuring and at the end of the financial year, no arrangements subsisted to which the Company is a party, beingarrangements with the object or objects of enabling directors of the Company to acquire benefits by means of theacquisition of shares in, or debentures of, the Company or any other body corporate.Since the end of the previous financial year, no director has received or become entitled to receive a benefit otherthan the fees, emoluments and money value of benefits disclosed in Note 7 to the financial statements by reason of acontract made by the Company or a related corporation with the director or with a firm of which he is a member, orwith a company in which he has a substantial financial interest.DIRECTORS' ROTATIONIn accordance with Article 105 of the Company's Articles of Association, Tan Sri Dato' Lodin bin Wok Kamaruddinand Tan Sri Dato' Haji Hanafiah bin Haji Ahmad retire by rotation from the Board at the forthcoming Annual GeneralMeeting and being eligible, offer themselves for re-election.DIRECTORS' RETIREMENTIn accordance with Article 112 of the Company's Articles of Association, Tan Leh Kiah who was appointed on14 November 2005 retires from the Board at the forthcoming Annual General Meeting and being eligible, offershimself for re-election.In accordance with Section 129 (2) of the Companies Act, 1965, Jen (B) Tan Sri Dato' Mohd. Ghazali bin Haji Che Matwho is over seventy years of age, retires from the Board at the forthcoming Annual General Meeting and the directorsrecommend his reappointment under Section 129 (6) of the said Act.STATUTORY INFORMATION ON THE FINANCIAL STATEMENTSBefore the income statements and balance sheets of the Group and the Company were made out, the directors tookreasonable steps:abto ascertain that proper action had been taken in relation to the writing off of bad debts and the making ofallowance for doubtful debts and have satisfied themselves that all known bad debts had been written off and thatadequate allowance had been made for doubtful debts; andto ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course ofbusiness, their values as shown in the accounting records of the Group and the Company had been written downto an amount which they might be expected so to realise.At the date of this report, the directors are not aware of any circumstances:abwhich would render the amounts written off for bad debts or the amount of the allowance for doubtful debts inthe financial statements of the Group and the Company inadequate to any substantial extent; orwhich would render the values attributed to current assets in the financial statements of the Group and theCompany misleading; or44 UAC BERHAD (5149-H) (Incorporated in Malaysia)