Directors - Boustead Holdings Berhad

8. PROFIT GUARANTEE
There was no profit guarantees given by the Company and its Subsidiaries during the financial year ended
31 December 2006.
9. REVALUATION POLICY OF LANDED PROPERTIES
The Group’s landed properties classified under property, plant and equipment are not revalued, but are
reviewed at each balance sheet date to determine if there is any indication of impairment. These landed
properties are stated at cost less accumulated depreciation and impairment. For landed properties
classified as investment properties, the Group assesses the fair value at the end of each financial year
and the change in fair value is taken as gains or losses in the income statement.
10. MATERIAL CONTRACTS
(a) During the year, the Group established an Islamic plantation real estate investment trust known as
Al-Hadharah Boustead REIT (Boustead REIT). The plantation assets were sold to the Boustead REIT
for a total consideration of RM471.9 million and these plantation assets were leased back pursuant
to an agreement entered with CIMB Trustee Berhad acting as trustee of Boustead REIT (Ijarah
Arrangements).
As at year end, the sale of these plantation assets to Boustead REIT (with the exception of Lepan Kabu
Estate and Lepan Kabu Oil Mill whereby the beneficial ownership will be transferred to the trustee of
Boustead REIT within six month from the date of listing of the fund) totaling RM400.15 million was duly
completed and the sale consideration comprising cash of RM219.90 million and 180.25 million new
units of Boustead REIT was received on 9 February 2007. The Al-Hadharah Boustead REIT was duly
listed on the official list of Bursa Malaysia Securities Berhad on 8 February 2007.
(b) Mutiara Rini Sdn Bhd (MRSB), a wholly owned subsidiary of Boustead Properties Berhad had on
14 February 2006 entered into a sale and purchase agreement with Lembaga Tabung Angkatan
Tentera (LTAT) for the disposal of 26-storey office tower to be erected on a freehold development land
held under H.S.(D) 183247, PT No. 44577, Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor
by MRSB to LTAT for a cash consideration of RM168.33 million.
(c) On 4 May 2006, the Company’s Subsidiary, Boustead Building Materials Sdn Bhd was awarded a
contract by Perbadanan Perwira Harta Malaysia, a wholly-owned corporation of Lembaga Tabung
Angkatan Tentera to design, construct, equip, commission and maintain an army hospital for a
contract sum of RM119.5 million. The period for the contract is for twelve months from 4 May 2006
and shall expire on 3 May 2007.
There were no other material contracts which had been entered into by the Group involving the interest
of Directors and major shareholders, either still subsisting at the end of the financial year ended
31 December 2006 or entered into since the end of the previous financial year.
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