Annual Report 2020

RANENP OUARLT



CONTENT Pg 02
Pg 03
PAHANG STATE FOUNDATION PROFILE Pg 04
Vision & Missions Pg 07
Background & Values Pg 12
Board of Trustees Pg 13
Top Management Pg 14
Corporate Sturucture Pg 15
Sources & Applications of Fund Pg 16
Profile of Pahang State Foundation Pg 18
Education, Economic & Community Outreach Expenditures Pg 20
Costumer Focus Pg 21
Yayasan Pahang Programmes Pg 25
Milestone Achievesments 2020 Pg 26
International Lingkages & Collaboration Pg 33
Strategic Parnerships Pg 34
Awards
Success Stories Pg 35
High Visibility Programmes Pg 36
Strategic Partnership Pg 39
Pg 40
PAHANG STATE FOUNDATION PROFILE Pg 43
Statement of Income & Retained Profits
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flow
Note to the Financial Statement

PAHANG STATE FOUNDATION PROFILE

A DIGNIFIED
SOCIETY

VISION &
MISSIONS

PAHANG STATE FOUNDATION

Vision:

To emerge as a leading state foundation which
strives to build a cohesive and world class knowledgeable society.

Missions:

1. To promote education transform and produce highly knowledgeable,
competent, skilled, matured and balanced human capital.

2. To expand opportunities and access of quality education
and training.

3. To encourage and facilitate development in the fields of industrial,
commercial, sports, arts and culture, economy, social, research and
technology management.

VALUES

Pahang State Foundation (YP) was established by the state government
under the Pahang State Foundation Enactment 6/82 on 18th December
1982 and officially launched on 29th September 1983by the late HRH
Sultan Haji Ahmad Shah Al-Mustafa’in Billah Ibni Al-Marhum Sultan Abu
Bakar Ri’ayatuddin Al-Mu’adzam Shah wo was then the Nation’s seventh
(7th) Yang di-Pertuan Agong.

SIDDIQ

Upholding Truth

The foundation’s staff members strive to work sincerely and honestly at
all times.

TABLIGH

Passionate Servitude

The foundation’s staff members will make the effort to convey information and
deliver services in a professional, effective and efficient manner.

AMANAH

Integrity

The foundation’s staff members will do their utmost to be transparent and
accountable when rendering services to customers.

FATHONAH

Wisdom

The foundation’s staff members will always pursue innovative and creative ways
in the endeavour to put Yayasan Pahang on its peak.

BOARD OF
TRUSTEES



TBROUASRTDE EOSF

YAB. Dato’ Sri Wan Rosdy Bin Wan Ismail

SSAP., DSAP., DIMP., SMP., AMP.

CHAIRMAN OF PAHANG STATE FOUNDATION

YB Dato’ Sri Syed Ibrahim b. Syed Ahmad YB Dato’ Sri Dr Sallehuddin b. Ishak
THE HONOURABLE PAHANG STATE SECRETARY

YH Dato’ Sri Hj Abdul Jabbar b. Ibrahim YH Dato’ Sri Kamaruddin b. Mohammed

YB. Dato' Sri Hajah Shahaniza YH Dato’ Dr Hj Ahmad Munawar b. Hj Abdul Jalil
bt. Shamsuddin

YH Prof Dato’ Ir Dr Haji Wan Hamidon YH Dato’ Dr Ahmad Shukri b. Ismail
b. Wan Badaruzzaman

TOP
MANAGEMENT

YH DATO’ MAHMUD B. MOHD NAWAWI

Ketua Pegawai Eksekutif

YH DATO’ NORHISHAMUDDIN YAACOB

Ketua Pegawai Kewangan

YBHG DATIN HAJJAH NORAZA ABD AZIZ

Ketua Pegawai Perkhidmatan

YBHG TN. HJ. ABDUL RAZAK
ABU MUSA SAARI

Ketua Pegawai Operasi

YBHG EN. AIRULAMRI AMRAN

Ketua Pegawai Korporat

CORPORATE TAHFIZ PAHANG
STRUCTURES SDN BHD

KYP EDUCATION O ers Al-Quran based
SDN BHD education, Diploma Tah z

O ers more than and Tah z Professional
30 certi cates, diploma with an aim to produce
and degree programmes professionals and technocrats
which is endorsed by the among its students that
Ministry of Higher Education
and Malaysian Quali cation are well balanced
and excels in every aspect
Agency. Technical
and Vocational Education of life and hereafter.
Training (TVET) courses in
computing, automotive,

hotel and fashion skills
training are also provided.
100%
100%

100%
100%
100%
100%

YP PLANTATION YP HEVEA YP MINING YP LAND
HOLDINGS SDN BHD SDN BHD SDN BHD SDN BHD
A company established to Established to diversify A company that is poised
manage YP’s palm oil plantation the palm oil plantation A company with an to contribute funds for
with maximum e ciency and manage YP’s landbank aim to contribute YP through real estate
and cost e ective and with possible agriculture funds for YP through activities.
achieve maximum pro t. plantations. mining activities.

MILESTONES
ACHIEVEMENTS
2019

MILESTONES KUMPULAN KYP TAHFIZ PAHANG YP PLANTATION YP MINING YP HEVEA YP LAND
ACHIEVEMENTS 2019EDUCATIONSDN.BHD.SDN.BHD.HOLDING SDN.BHD. SDN.BHD.
SDN.BHD. SDN.BHD.

28 FEBRUARY 2019

Received the Medal of Commissioner General of
Malaysia Prison by Malaysia Prison Department
(Tafaqquh Fiddin Program for prisoners in Pahang) at
Kompleks Penjara Penor

28 Februari 2019 • Kompleks Penjara Penor

25 MAC 2019

• The appointment of our Raja Permaisuri Agong
as the first Tuanku Canselor of UCYP

• UCYP’s Food Preparation Course and Bread
Making Course are recognized on the
international level by the World Association of
Chef’s Societies (WAC)

27 JULY 2019

• Institutional Excellence Award 2019 ( Management
Category)
• Institutional Excellence Award 2019 (Academic
Achievement Category)
• Academic Excellence Award 2019
• Minister Award at The Prime Minister’s Department
• Darul Quran Board President Award

5 SEPTEMBER 2019

Naib Johan
First Runner Up for the Innovative & Creative Group
Competition on the Pahang State Level 2019 (For
SMART TFD- Pahang Tafaqquh Fiddin Innovation
Program) at Bukit Gambang Resort City

5 September 2019 • Bukit Gambang Resort City

5 SEPTEMBER 2019

First Runner Up
Innovation Competition on the Pahang State Level
2019 (For Baca Cepat Kawanku Programme) at Bukit
Gambang Resort City
5 September 2019 • Bukit Gambang Resort City

23 SEPTEMBER 2019

MOU WITH KRU ACADEMY & YAYASAN KRU
Established a MOU with KRU Academy & KRU Academy
KYP had signed a MOU with KRU Academy dan
Yayasan KRU on 23rd September 2019.

25 OCTOBER 2019

APPOINTED CURATOROF RAJAWALI-X EXHIBITION

Appointed Curator for Rajawali-X Exhibition Gallery
Mr Khairul Abas, KYP’s very own lecturer from School of Art &
Humanity had held a joint art exhibition along with other
artists and was appointed as the curator for Rajawali-X
Episode 2 Exhibition Gallery on 25th October 2019 at (0
Degrees Cafe & Art, Kuantan. The exhibition was officiated
by TB Dato’ Sri Hajah SHahaniza binti Shamsudin and it was
held until 30th November 2019.

1 NOVEMBER 2019

Certification of MS ISO 9001:2005 SIRIM QAS.
KYP EDU SDN BHD had successfully renewed
the Certificate of MS ISO 9001:2015 SIRIM
QAS on 1st November 2019

5 NOVEMBER 2019

THE ACHIEVEMENT OF UNIVERSITY COLLEGE OF
YAYASAN PAHANG (UCYP

Lee Weng Yew, a student from Diploma of Computer
Science, with cooperation from UTM had been honored
with Graduate Excellence Award during the Graduate
Excellence Award Ceremony in conjunction with UTM 63rd
Convocation Ceremony.

8 NOVEMBER 2019

YPPH has been certified with the Certificate of
Malaysia Sustainable Palm Oil (MSPO) for all 14
estates and is the first company in Pahang to
achieve this.

8 November 2019 • One World Hotel, KL

15 NOVEMBER 2019

Yayasan Pahang has been honored with
4 Awards bythe AIA Vitality 2019 Awards which are:
• Malaysia Helathiest Employees
• Malaysia Healthiest Employer
• Malaysia Healthiest Workplace
• Malaysia Most Improved Workplace
• Malaysia Healthiest Workplace Summit 2019

3 DECEMBER 2019

• MTNP has been recognized as the Best School in
Pahang for 6 consecutive years
• MTNP is also certified with the Certificate of MS ISO
9001:2015 (Quality Management Systems -
Requirements) and the Certificate of MS ISO
1900:2014 (Shariah-Based Quality Management
Systems - Requirements with Guidance)

21 DECEMBER 2019

ACHIEVEMENT OF UNIVERSITY COLLEGE OF
YAYASAN PAHANG (UCYP)
Muhammad Harith Farhan bin Mohd Radzuan, a
student of Diploma in Technology Management
with cooperation from UTM had won the 2nd
Runner Up in the 14th Korean Speech Contest
held at Universiti Malaya on 21st December 2020.

OSUFCMC EUSRSIDS T ORY
PERHATI

SUCCESS STORY OF MURID PERHATI

Program Anak Yatim Permata Hati or PERHATI is a program conducted specially to
catr the orphans so that they are able to achieve success in their academic journey
and have the ability to pursue for higher education which will later on secure a
career that suits their interest, passion and capability. This program aims to help the
children that have lost their father, mother or both of them. This program will start to
cater these children when they are in their Form 4 and Form 5 in high school. PERHATI
wants to help them excel with their academic results and also to build character and
credibility in them.

The mission is to put them among other students in any higher learning institution and
also shape them for the industry to secure a job. PERHATI has been proven a great
and effective program as there are alumni that can be as proof for the success of
this program.

MUHAMAD HAZIQ
BIN ROSNI

SCHOOL: With 2 years of experience in the energy industry, Haziq
SEKOLAH SAINS has been in charge of the 132kV Transmission Line
SULTAN HAJI AHMAD SHAH, Project in Genting Highlands. He had led the team and
PEKAN built 20 new towers there.

OCCUPATION: This project was overseen by TNB and Genting Berhad
Power System Engineer which was one of the mega projects for Genting and
Haziq was appointed as its Project Engineer and Project
HIGHER EDUCATION: Manager.
Masters in Power System
Engineering, University Malaya As someone with high dedication and leadership,
Haziq has set his eyes on handling a mega project on
the international level for his next achievement.

TEO WEN LONG

SCHOOL:
SMK HWA LIAN

OCCUPATION:
Information Technology (IT)
Programmer for Qumon
Intelligence

HIGHER EDUCATION:
Bachelor of Computer
Science (Computer Network
& Security)

MUHAMMAD NURHAFIZZUL
BIN ZULKIFLI

SCHOOL: Hafiz gives his thanks to Yayasan Pahang and is grateful
SMK KUALA KRAU for the PERHATI Programme as it had helped many
orphans all over Pahang and him being one of the
OCCUPATION: lucky people to benefit from it, he is forever grateful.
Mechanic for DMM Hafiz was always close with his PERHATI Coordinator
Perodua Butterworth that always kept up with his academic progress. His
Pulau Pinang coordinator had organized various programmes to aid
in academic and personality growth for him and his
HIGHER EDUCATION: friends. He also received guidance from his coordinator
Diploma in Manufacturing to choose the best path for him after getting his SPM
Automotive Engineering results. This helped him to choose the one that best suits
Technology him and can guarantee him a bright future. PERHATI
gave him the confidence he needed in himself and
kept him motivated. He hopes that PERHATI will
continue on helping as many orphans as they can in
the future and give guidance like what he had
experienced and he wishes the best for all the future
participants and a better future for them too.

SITI NORAQILAH BINTI
MOHD SAZALI

SCHOOL:
SMK SEBERANG TEMERLOH

OCCUPATION:
Accountant at Bullish Aim Sdn Bhd

HIGHER EDUCATION: Aqilah was introduced to the PERHATI program back in
Diploma in Accounting high school and since that day, her life had changed
Degree in Accounting with the help of the PERHATI initiative. The program
ACCA gave her the opportunity to participate in various
academic programmes that helped her in giving her
best in her exams. Her effort paid off when she excelled
in her SPM and further her study to Diploma in
Accounting. That is where she found her passion in
accounting and knew that she what her next goal was.
Being a PERHATI participant, she knew what she should
do to motivate herself and push for the best. Her hard
work then helped her to secure a place to give her the
chance to pursue ACCA. She is now a chartered
accountant at Bullish Aim Sdn Bhd. She is always
grateful to all the teachers and the Yayasan Pahang
team for helping her achieve what she is now. She is a
living proof that nothing is impossible and with the right
effort and help, everything is achievable.

PCSRRO GRA MMES

World Cleanup Day
2020

In support of World Cleanup Day 2020, Yayasan Pahang had
organized a beach cleanup program in Kuantan and joined together
with National Aspiration Leaders Summit (NALS) Malaysia. World
Cleanup Day is an annual event happening simultaneously
throughout the whole world. The program took place at three main
beaches in Kuantan which was Pantai Sepat, Pantai Teluk Cempedak
and Pantai Batu HItam. Yayasan Pahang opened this program to the
public for any volunteers that were interested to join this event.
Volunteers from all walks of life came together with a mission to clean
up the beaches in Kuantan and maintain a clean environment. The
volunteers were divided into three groups for three locations. It was a
surprise to the team that the beaches were filled with trash due to the
irresponsible littering by the visitors at the beach. The trash collected
were then sorted out according to their groups of plastic, metal and
papers. All three teams then gathered back in Yayasan Pahang to
gather the trash from all three beaches and sent them to the recycling
centre. It was a day of hard work for everyone and seeing the amount
of trash collected gave them a sense of relief because they know they
managed to clean up the beaches thoroughly. The result after the
cleanup was really satisfying to see. Yayasan Pahang and NALS
Malaysia thanked the volunteers for their selfless act and looked
forward to any future programs with them. It is obvious that there is still
a lack of awareness by the people to be responsible and keep the
environment clean. We hope that more programs like this can be held
to give awareness about the importance of it.

FINANCIAL
STATEMENT

45

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

STATEMENTS OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED
31 DECEMBER 2019

Group Founda�on
2019
2018 2019 2018
RM RM
Note 339,755,796 RM RM
5 353,761,075
Revenue 6,161,807 6,720,606 147,388,364 126,795,358
Other income from opera�ons 6
Sales of real estate, plant 8 - 1,840,298
equipment and biological
assets. 145,618,963 - 124,687,073 -
Estates opera�ng cost (95,442,198) (121,180,8) - -
Cost of quoted investment sold - -
Employees benefit (49,859) (55,412) (10,778,374)
Impairment losses (51,743,153) (51,579,332) (12,678,161) (19,587,425)
Deprecia�on of property, Plant (2,129,339)
and equipment - - (2,640,927)
Amor�za�on of biological (2,650,513)
assets (15,394,351) (13,834,951) -
Petrol and others - (1,155,211)
Repair and maintenance of (15,202,671) (14,577,399) (1,031,340)
property, plant and (4,047,952) (3,859,528)
equipment
Rental of building (3,505,606) (3,439,653) (1,235,520) (1,585,539)
Logging expenses (1,568,329) (1,482,510) - -
Programs (4,277,143) (5,914,893)
Adver�sement and marke�ng (4,277,143) (5,914,893)
Travelling and lodging (681,300) (447,357) - -
Dona�on to the state (898,259) (901,401) - -
government (3,893,098) (4,247,585) - -
Capital grants and educa�on
Other expenses (3,600,000) (1,300,000) (3,600,000) (1,300,000)
Zakat - - (9,285,000) (2,700,000)
Dona�ons (7,664,874) (9,293,327)
(37,765,601) (44,073,979)
Profit from opera�on (291,081) (1,189,086) - -
Finance cost (50,646,997) (54,367,216)
(50,646,997) (54,367,216) 176,876,550 19,312,744
Profit before tax 202,528,968 38,030,532
Tax (11,391,265) (13,831,498) (1,353,854) (4,465,325)
191,137,703 24,199,034 175,522,696 14,847,419
Net Profit for the financial year (2,589,127)
(1,242,987) 21,609,907 (505,044) (83,602)
189,894,716 175,017,652 14,763,817

The accompanying notes form and integral part of the financial statements

46

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

STATEMENTS OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED
31 DECEMBER 2019

Note Group 2018 Founda�on 2018
2019 RM 2019 RM
9
10 RM RM
11
Non - current assets 12 364,148,682 366,327,468 164,369,06 164,099,74
Property, plant and 13 2,388,239 2,409,644 1 5
equipment 14
Investment proper�es, 15 402,302,877 436,482,953 --
at cost model 16 69,509 79,438
Biological assets at cost --
model 7,516,902 350,918
Goodwill from - - --
consolida�on
Development 425,001 425,001 - -
expenditure 7,525,671 6,667,458 128,846,46 128,644,51
Investment in
subsidiaries 2 4
Investment in
associates 425,000 425,000
Investment in jointly
controlled en��es - -
207,203,80 209,860,65
Student debtors 17 207,203,808 209,860,659
1,022,603,53 8 9
991,580,689 500,844,33 503,029,91
9
1 8
10,101,802
Current assets
51,898
Inventories 18 6,667,096 19,000,000 --

Property development 68,948,205
460,659
cost 323,883 - -
92,442,205 19,000,000 19,000,000
Students debtors 17 19,000,000 109,106,30
85,281,779
Receivables, deposits - 2
-
and prepayments 19 62,785,506

Tax recoverable 407,395

Deposits, bank and

cash balances 20 126,765,614 56,573,340 30,059,983
160,855,11 158,166,28
Total assets 215,949,494 191,004,769
1,207,530,18 1,213,608,30 9 5
661,699,45 661,196,20
3 8
0 3

47

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019 (CONT’D)

Note Group 2018 Founda�on 2018
2019 RM 2019 RM

RM RM

Equity 839,654,806 649,760,090 601,285,070 426,267,418
1 1 - -
Pahang Founda�on
Reserves 839,654,807 649,760,091 601,285,070 426,267,418
Minority interest
21 119,546,665 124,140,428 - -
Non-current liabili�es 22 92,668,000 91,849,000 - -
Borrowings (interest 23 698,705 - 698,705 -
bearing) 698,705 -
Deferred tax liabili�es 212,913,370 215,989,428
Government grants
24 88,970,059 197,719,378 50,437,831 139,155,914
Current liabilities
23 16,779 - 16,779 -
Payables
Provision of employee 21 39,540,414 71,523,200 - 38,838,060
benefits 866,609 615,280 687,779 182,735
Borrowings (interest - 8,573,286 -
bearing) 8,573,286
Tax liabili�es 16,994,859 78,000,931 - 56,752,076
Real estate tax liability 154,962,006 347,858,789 59,715,675 234,928,785
Bank overdra� 367,875,376 563,848,217 60,414,380 234,928,785

Total liabili�es 1,207,530,183 1,213,608,308 661,699,450 661,196,203
Total equity and
liabili�es

The accompanying notes form and integral part of the financial statements

48

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

STATEMENT OF CHANGES IN EQUITY FOR
THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

Pahang Founda�on Reserve

2019 2018

RM RM

The Group 649,760,090 628,150,183
At 1 January 189,894,716 21,609,907
Net profit for the year 839,654,806 649,760,090
At 31 December
426,267,418 411,503,601
The Founda�on 175,017,652 14,763,817
At 1 January 601,285,070 426,267,418
Net profit for the year
At 31 December

The accompanying notes form and integral part of the financial statements

49

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

STATEMENT OF CASH FLOWS FOR
THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

Group 2018 Founda�on 2018
2019 RM 2019 RM

RM RM

Opera�ng ac�vi�es 189,894,716 21,609,907 175,017,652 14,763,817

Net profit/loss for the year 15,394,351 13,834,951 2,650,513 2,640,927
59,961 18,178 - -
Adjustments for:
(145,605,77) (42,574) (124,687,07) -
Property, plant and equipment
21,405 21,405 - -
- Deprecia�on 15,357,809 14,577,399
(1,840,298) - -
- Write off -
- (1,840,298)
- Profit on sales less property
profit tax of RM16,488,183 - -
(2018: NONE)
- (16,244,921)
Accumulated deprecia�on and - -
impairment of investment - -
proper�es
1,598,052 19,587,425
Deprecia�on of biological - -
assets - -

Impairment of student loan 1,353,854 4,465,325
repayment recoverable (2,522,751) (460,742)
(3,015,000) (14,765,000)
(Profit) / Fair value loss equity (858,213) 962,768
Dona�on to Pahang State 715,484 -
Government - (16,244,921) 505,044 83,602
Biological assets wri�en off - 2,300,000
Inventory wri�en off - 342,536 51,615,775 8,230,135
Reversal of impairment loss
- Subsidiaries - -
- debtors - 2,569,548
Goodwill - amor�za�on 9,929
Interest expenses 11,391,265 9,929
Interest income (4,088,874) 13,831,498
Dividend income (3,015,000) (2,086,019)
Provision of employee benefits 715,484 (3,074,025)
Tax expense 1,242,987
Opera�ng profit/(Loss) before -
working capital 80,520,050 2,589,127

49,379,409

50

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

STATEMENT OF CASH FLOWS FOR THE
FINANCIAL YEAR ENDED 31 DECEMBER 2019
(CONT’D)

Group 2018 Founda�on 2018
2019 RM 2019 RM

RM RM

Opera�ng ac�vi�es (Con’t) 3,434,706 6,778,496 - -
Changes in working capital: (271,985) (51,898) - -
Inventories
Property development cost 10,049,232 1,200,304 26,481,374 (6,519,777)
(107,342,017) (8,725,382) (80,144,797) (20,616,972)
Receivables, deposits and
prepayments (13,610,014) 48,580,929 (2,047,648) (18,906,614)
Creditors (11,391,265) (13,831,498) (1,353,854) (4,465,325)
3,015,000 14,765,000
Total amount from opera�ng 3,015,000 3,015,000 2,522,751
ac�vi�es 4,088,874 2,064,524 460,742
Interest paid - -
Dividend received 264,106 46,992 -
Interest received (383,500) (529,214) (154,111)
Tax refunded 2,136,249
Tax paid (18,016,799) 39,346,733 (8,300,308)

Net cash flow from/(used in)
opera�ng ac�vi�es

Inves�ng ac�vi�es (23,616,568) (43,148,382) (6,345,698) (2,808,355)
- 2,680,606 - 2,624,635
Property, plant and
equipment - 600 - -
(20,156,620) (29,065,991) - -
Purchase of investment
195,032,817 42,575 128,112,942 -
Net cash from acquisi�on of - - - (400)
subsidiary
- - (1,800,000) (1,000,000)
Biological assets expenditure
151,259,629 (69,490,592) 119,967,244 (1,184,120)
Proceeds from sale of
property, plant and
equipment

Acquisi�on of subsidiary

Addi�onal investment in
exis�ng subsidiary

Net cash flow (used in)
inves�ng ac�vi�es

51

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

STATEMENT OF CASH FLOWS FOR THE
FINANCIAL YEAR ENDED 31 DECEMBER 2019
(CONT’D)

Note Group 2018 Founda�on 2018
2019 RM 2019 RM

RM RM

Financing activities (482,775) (475,281) (256,107) (251,749)
17,639,139 22,341,424 - -
Fixed deposit(secured) (29,214,700) (24,783,881)
Term loans raised (25,100,000) (13,738,060) (1,874,140)
Repayment of term loans - (25,100,000) -
Net revolving credit (1,237,788)
Outflow of hire purchase (557,761) - -
(38,396,124)
creditor (3,475,499) (39,094,167) (2,125,889)
94,846,706 (33,619,358) (11,610,317)
Net cash flow (used in)/from 83,009,326
financing ac�vi�es
20 1,910,037 35,529,395 (35,163,346) (23,553,029)
Net increase/(decrease)in cash 96,756,743 1,910,037 47,845,980 (35,163,346)
and cash equivalents

Cash and cash equivalents

- at beginning of the
financial year

- at end of the financial year

The accompanying notes form and integral part of the financial statements

52

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019

1 GENERAL INFORMATION
The main ac�vi�es of the Founda�on are to provide educa�on loans, scholarships, manage
educa�onal and welfare assistance ac�vi�es, property development and investment holders.
Yayasan is a corpora�on established in the State of Pahang Darul Makmur, under Enactment No.
6 of 1982.
The address where the Founda�on operates is the Pahang Founda�on Complex, Tanjung Lumpur,
26060, Kuantan, Pahang Darul Makmur.
The Group ‘s main ac�vi�es are the sale of logging concessions, oil palm and rubber planta�ons,
property development and investment holders, educa�on and scholarship lending, educa�onal
and training ins�tu�ons.
The financial statements are stated in Ringgit Malaysia.
2 COMPLIANCE WITH FINANCIAL REPORTING STANDARDS
These Financial Statements have been prepared in accordance with the Malaysian Private En�ty
Repor�ng Standards (“MPERS”) issued by the Malaysian Accoun�ng Standards Board (MASB).

53

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

3 BASICS OF PREPARATION OF FINANCIAL STATEMENTS
(a) The financial statements of the Group have been prepared on the basis of cost and
fair value.
(b) Management has used es�mates and assump�ons in measuring total assets and
liabili�es at the end of the repor�ng period and the amount of revenue and expenditure
during the repor�ng period. The considera�ons and assump�ons used in the
measurement, and thus, the actual results may not coincide with the amounts
reported.
Ma�ers involving important considera�ons and es�ma�on uncertain�es are as
follows:
(i) Deprecia�on of property, plant and equipment
The cost of an item of property, plant and equipment is depreciated on a
straight-line basis or another systema�c method that reflects the use of economic
benefits over the life of the asset. Es�mates are used in the selec�on of deprecia�on
methods, useful lives and residual values. The actual use of economic benefits for
real estate, plant and equipment may differ from the es�mates used and this may
lead to profit or loss on disposal of a property, plant and equipment.
(ii) Provision for losses on financial assets The
Group recognizes impairment losses for debts and receivables using the indemnity
model. For significant individual debtors and debtors, their impairment will be
tested separately by es�ma�ng the expected cash flow. Other debts will be
grouped into credit risk classes and tested for impairment in groups using previous
group loss sta�s�cal experience, past aging value records and current economic
likely to affect the posi�on of the Group ‘s financial statements and revenue.

54

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

3 BASIS OF PREPARATION OF FINANCIAL STATEMENTS (CONTINUED)
Ma�ers involving significant considera�on and uncertainty of es�mates are as follows
(con�nued):
(iii) Classifica�on of financial and oper a�ng
leases The Group classifies leases as financial leases or opera�ng leases based on
significant risk and reward criteria as well as asset ownership backup to him. As a
lessee, the Group recognizes a lease as a financial lease if it is exposed to significant
risks and rewards in addi�on to the ownership of the asset. In applying the considera�ons,
the Group also considers whether there are significant incen�ves when the Group
wishes to exercise a purchased op�on and if there is an op�on to renew the term. A
lease will be classified as a finance lease if the lease term is at least 75% of the economic
life of the underlying asset, the current value of the lease payment is at least 90% of
the fair value of the underlying asset, or the asset iden�fiable in the lease most of it
can only be used by the lessor. All other leases that do not have a significant impact on
risk and reward will be classified as opera�ng leases.
The Group considers a land lease to be a finance lease if the fair value of the leased
land is 90% greater than the fair value of the freehold land or if ini�ally, the lease term
can be determined for 50 years or more. Leased land that does not meet any of the
criteria will be classified as opera�ng lease.

55

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES

(a) Property, plant and equipment

All property, plant and equipment are ini�ally stated at cost. For the cost of the asset
purchased includes the purchase price plus all direct costs incurred in bringing the
asset to the loca�on and condi�on for use by management.

All property, plant and equipment are subsequently measured at cost less accumulated
deprecia�on and accumulated impairment losses.

Freehold land is not amor�zed as it has no life expectancy. Long-term leasehold grants
that have not been received and property development costs are also not amor�zed.
Long-term lease land is amor�zed over the lease term of 99 years or applicable.

All property, plant and equipment are depreciated by alloca�ng the depreciable
amount of essen�al components or an item over the remaining life. The method of
deprecia�on used and the useful life of property, plant and equipment are as follows:

Method Life�me (years)

Buildings and boarding Straight-line 20-50
Horse Straight-line 6.6
Modify, instruments and equipment Straight-line 4-10
Audio and video equipment Straight-line
Vehicles Straight-line 5 - 6.6
Plant and machinery Straight-line 5
5

At the end of each repor�ng period, residual values, useful lives and deprecia�on
methods of property, plant and equipment are reviewed for fairness. Any changes in
item es�mates are adjusted prospec�vely over the remaining life span, beginning with
the current period.
Deprecia�on on assets in development begins when the asset is completed for its
intended purpose.

56

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) Biological Assets

The biological assets group consist of the biological assets of oil palm and rubber
producers.

Producers' assets are accounted for at cost less amor�za�on and accumulated impairment.
The cost of the producer's assets consists of the accumulated farm development expenses
ranging from the nursery nursery period to the maturity period of the cul�vated crop.
Capitaliza�on of development expenditure will be stopped when the commercial
harvest or notch begins which is 3 years for oil palm planta�on and 7 years for rubber
planta�on. The amor�za�on method and amor�za�on period of the producer assets
are:

Oil palm Method Useful Life (years)
Rubber plant Straight line 25
Straight line 35

Once the crop has reached the end of its useful life and replanted, the carrying value
of the old crop will be derecognised and the new crop will be considered as a replacement
for the old crop and capitalized.

57

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Impairment of non-financial assets
Impairment losses arise when the carrying amount of the Group 's assets exceeds its
recoverable amount.
At the end of each repor�ng date, the Group assesses whether there are any indica�ons
that a stand-alone asset or cash-genera�ng unit may be compromised using external
sources and internal informa�on. If any such indica�on exists, the Group es�mates the
recoverable amount of the cash-genera�ng asset or unit.
If an individual asset generates free cash flow, it is tested for impairment of a stand-alone
asset. If an asset does not generate free cash flow, it is tested for impairment along with
other assets in the cash-genera�ng unit, at the lowest level where free cash inflows are
generated and monitored for internal management purposes.
The recoverable amount of an asset or cash-genera�ng unit is between the fair value
less the cost to sell and the value in use which is higher. The Group determines the fair
value less costs to sell a cash asset or unit in the hierarchy based on:
(i) price in sale and purchase agreement.
(ii) market prices traded in ac�ve markets; and
(iii) market price es�mates using the best informa�on available.
The value used is es�mated by discoun�ng net cash inflows (at appropriate discounted
rates) for assets or units, using reasonable and supported five-year management budgets
and forecasts and extrapola�ng cash inflows for periods a�er five years or budgets.
For assets measured on a cost-based model, any impairment loss is recognized in
profit or loss.
For cash-genera�ng units, any impairment loss is allocated to the unit's assets pro rata
based on the rela�ve carrying amount of the asset.
The Group re-evaluates the recoverable amount of an impaired cash asset or unit if
there is any indica�on that the previously recognized impairment loss may have
reversed. Any reversal of an impairment loss on an asset carried on a cost-based model
is recognized in profit or loss, subject to a limit where the revised amount does not
exceed the amount due if the impairment loss has not been previously recognized.

58

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d) Company ownership and consolida�on basis
Group recognizes ownership companies based on control criteria. A holding company
is an en�ty (including a special purpose en�ty) in which the Group has the power to
administer the financial and opera�ng policies of the holding company to benefit from
its ac�vi�es. In situa�ons where vo�ng rights are not more than half or when vo�ng
rights are not determinant of dominon control, the Group uses judgment to assess
whether it has de facto control, control with other arrangements (including control of
special purpose en��es), or with substan�ve poten�al vo�ng rights .
The financial statements of the Founda�on and all ownership companies used in the
prepara�on of the consolidated financial statements are prepared on the same repor�ng
date as at 31 December 2019.
The consolidated financial statements are prepared using the same accoun�ng policies
for all transac�ons, events and other condi�ons under the same circumstances.
The carrying amount of investments in each company owned by the Group is eliminated
by the equity por�on of the Founda�on. The consolidated financial statements incorporate
the assets, liabili�es, equi�es, income, expenses and cash flows of the Founda�on and of
all proprietary companies. Decisions of ownership companies acquired or disposed of
during the financial year are included in the statement of income and accumulated profits
from the effec�ve date of acquisi�on (which the Founda�on begins to control recipients of
investments) or un�l the effec�ve date of disposal (which the Founda�on no longer has
control over recipients of investments).
All balances and transac�ons between the Group are wri�en off at consolida�on.
Gains or losses arising on group transac�ons are also eliminated en�rely on consolida�on,
except when intangible losses are impairment losses.
When the Group no longer controls the holding company, the difference between the
proceeds from the disposal of the holding company and the amount carried out at the
date of loss of control is recognized in profit or loss in the income statement and accumulated
profit as a gain or loss on disposal of the holding company.

59

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(e) Associates and joint ventures
(i) Associates
The Group recognizes associates based on important influence criteria. Significant influence exists
when the Group has the power to par�cipate in the financial and opera�ng policy decisions of an
associate but has no control or co-control over such policies. This is usually achieved when the
Group, directly or indirectly through a proprietary company, holds 20 per cent or more of
the vo�ng rights of the recipients of the investment. When the Group 's vo�ng rights
in recipients are less than 20 per cent, the Group assesses whether it has significant
influence by examining all relevant facts and circumstances, including the existence of
substan�ve vo�ng rights, representa�on on the board of directors, par�cipa�on in
policy-making, transac�ons important between the Group and investment, the
exchange of management staff and the provision of important technical informa�on.
The Group measures investments in associates using the equity method. Under this
method, at ini�al recogni�on, investments in associates are stated at cost. Therea�er,
the carrying amount is increased or decreased to recognize the Group: (i) the share of
profit or loss of investment through profit or loss; (ii) from the comprehensive income
of other investment recipients through other comprehensive income; and (iii) changes
in shareholders' investments in net assets other than through equity.
If the Group 's share of losses in an associate equals or exceeds the carrying amount of
its investments in investments, the Group does not con�nue to recognize its share of
the losses. A�er the Group's interest has been reduced to zero, it recognizes addi�onal
losses as a provision only to the extent that it has incurred legal or construc�ve obliga�ons or
has made payments on behalf of the invested.
(ii) Joint venture company
The Group recognizes joint arrangements based on shared control criteria. A joint
arrangement arises when the Group and the other party or par�es are bound by a contract
agreement and the contractual agreement that gives the Group and the other party or
par�es the joint control of the arrangement. Joint control exists when there is a joint
control sharing contract that is agreed upon and the decision of the related ac�vity
requires the unanimous consent of the party sharing the control.
A joint arrangement is classified as a joint venture if the Group and other partners, who
share common control, have a right to the net assets of the arrangement. For the
interest in joint ventures, the Group recognizes its importance as an investment under
the equity method.

60

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Inventories
Inventories are valued at the lower of cost and net realizable value. Cost is determined on a
first come, first served basis, based on invoice prices. Net sales value is the es�mated selling
price in the ordinary course of business, less produc�on costs and sales expenses.
(g) Tax assets and tax liabili�es
Current tax for the current and prior periods, as far as non-payable, is recognized as
current tax liability. If the amount paid in respect of the current and previous periods
exceeds the amount due for the periods, the excess is recognized as a current tax
asset. Current tax liabili�es (assets) are measured at the amount the Group expects to
pay (recoverable) using tax rates and laws that have been enacted or substan�ally
enacted by the repor�ng date.
Deferred tax liabili�es are recognized for all taxable temporary differences, except to
the extent that deferred tax liabili�es arise from:
(i) Early recogni�on of goodwill; or
(ii) the ini�al recogni�on of an asset or liability in a transac�on that is not a business
combina�on and at the �me of the transac�on, does not affect either accoun�ng
profit or taxable profit (or tax loss). Exclusions of ini�al recogni�on differences include
property, plant and equipment that are not eligible for capital allowances and intangible
assets acquired which are not deduc�ble for tax purposes.

61

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g) Tax assets and tax liabili�es (con�nued)
Deferred tax assets are only recognized to the extent that it is probable that future taxable
profits will be available, unless deferred tax assets arise from the ini�al recogni�on of an
asset or liability in a transac�on that is not a business combina�on and at the �me of
the transac�on, does not affect either accoun�ng profits or taxable profits (or tax
losses). Excep�ons to ini�al recogni�on differences include non-taxable government
grants received and reinvestment allowances and investment tax allowances for eligible
proper�es, plants and equipment.
Deferred tax assets are recognized for unused tax losses carried forward and unused
tax credits to the extent that it is probable that future taxable profits will be available
against which unused tax losses and unused tax credits can be applied. Unused tax
credits do not include reinvestment allowances and unabsorbed investment tax allowances
as the Company considers this to be part of the ini�al recogni�on difference.
Deferred tax is measured using the tax rates (and tax laws) enacted or substan�ally
enacted at the end of the repor�ng period. Deferred tax measurements reflect the tax
effects that will follow from the manner in which the Group expects, at the end of the
repor�ng period, to recover or se�le its asset amount or liabili�es.
At the end of each repor�ng period, the carrying amount of deferred tax assets is
reviewed and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to enable par�al benefits or all deferred tax assets to be
u�lized. Any such deduc�on will be reversed to the extent that it is probable that sufficient
taxable profits will be provided.
Current or deferred tax is recognized as income or expense in profit or loss for the
period. For items recognized directly in equity, the effect of related taxes is also recognized
directly in equity.

62

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(h) Financial Instruments

(i) Ini�al recogni�on and measurement

The Group recognizes financial assets or financial liabili�es (including deriva�ve instruments) in the
statement of financial posi�on when, and only when, it becomes a party to the contractual
provisions of the instrument.

At ini�al recogni�on, financial assets and financial liabili�es are measured at fair value, which
is generally the transac�on price, plus transac�on costs if the financial asset or financial liability
is not measured at fair value through profit or loss. For instruments measured at fair value
through profit or loss, transac�on costs are charged to profit or loss when spent.

(ii) Recogni�on of financial insstruments

Financial assets are derecognised when, and only when, the contractual right to receive cash
flows from the financial assets expires, or when the Group transfers the contractual right to
receive cash flows from the financial assets, including circumstances when the Group acts only
as a transfer agent, and retains none risks and rewards of ownership of financial assets or no
con�nued involvement in the control of transferred financial assets.

Financial liabili�es are derecognised when, and only when, they are properly se�led, whether
when the obliga�ons stated in the contract are discharged or canceled or expired. Substan�al
modifica�ons to exis�ng financial liability terms are accounted for as disposal of the original
financial liability and recogni�on of the new financial liability. To this end, the Group considers
the modifica�on to be substan�al if the present value of the revised cash flow is discounted
at the original effec�ve interest rate of 10% or more compared to the carrying amount of the
original liability.

63

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(h) Financial Instruments (con�nued)

(iii) Subsequent measurements of financial assets

For the purpose of subsequent measurements, the Group classifies its financial assets into
two categories, namely:

(i) Financial assets at fair value through profit or loss, and

(ii) Financial assets at amor�zed cost

Investments in unquoted equity instruments and fair values that cannot be determined are
accurately measured at cost.

Apart from financial assets measured at fair value through profit or loss, all other financial
assets are subject to review for impairment as disclosed in Note 4 (h) (vii).

(iv) Subsequent measurements of financial liabili�es

Subsequent to ini�al recogni�on, all financial liabili�es are measured at amor�zed cost using
the effec�ve interest method.

(v) Measurement of the fair value of financial instruments

The fair value of a financial asset or financial liability is determined by reference to quoted
market prices in the ac�ve market, and by the absence of available market prices, by valua�on
techniques using reasonable and suppor�ve assump�ons.

(vi) Recogni�on of fair value gains and losses

Financial assets and financial liabili�es at fair value through profit or loss are recognized in
profit or loss when they arise. For financial assets and financial liabili�es carried at amor�zed
cost, profit or loss is recognized in profit or loss only when the financial asset or financial liability
is recognized or impaired, and through the amor�za�on process of the instrument.

64

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(h) Financial Instruments (con�nued)
(vii) Impairment and impossibility of collec�ng financial assets
At the end of each repor�ng period, the Group reviews whether there is any objec�ve
evidence that a financial asset or a group of financial assets is affected. Evidence of a catastrophic
event includes:
(i) great difficulty from the issuer or insurer.
(ii) breach of contract, such as default or unlawful acts on interest payments or principal payments.
(iii) providing excep�onal concessions to customers.
(iv) there is a possibility that the customer will go bankrupt or other financial restructuring.
(v) there is no ac�ve market for financial assets due to financial problems; or
(vi) any market data indica�ng that there may be a measured decrease in future es�mated
cash flows from a group of financial assets.
For business receivables and other short-term debtors, where the effect of the discount is
insignificant, every significant creditor will be tested for impairment losses if there are any
signs of impairment.
For investments in unquoted equity measured at cost less impairment, impairment is the
difference between the carrying amount of an asset and the es�mated best value the Group
can obtain if the asset is sold at the repor�ng date.
(i) Opera�ng leases and finance
leases Leases of property, plant and equipment in which the Group carries most of the benefits
and risks of ownership are classified as finance leases. All other leases that do not meet these
criteria are treated as opera�ng leases.
For opera�ng leases, the Group does not capitalize on the assets involved or consider the
lease liabili�es. On the other hand, opera�ng lease payments are recognized as an expense on
a straight-line basis over the term of the lease.
Short-term land leases are accounted for as opera�ng leases and the assets are not capitalized.

65

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Property Development costs
Property development costs include costs related to land costs and all costs that are directly
related to development ac�vi�es or that can be reasonably allocated to these ac�vi�es.
When the results of development ac�vi�es can be es�mated reliably, income, development
expenses and income are recognized using the level of comple�on method. The level of
comple�on is measured with reference to the architect's cer�ficate issued to date.
When the outcome of development ac�vi�es cannot be es�mated reliably, property development
revenue is recognized only to the extent of property development costs incurred which are
likely to be recoverable; The cost of property development on development units sold is
recognized when incurred.
Regardless of whether the outcome of property development ac�vi�es can be es�mated
reliably, when it is likely that the total cost of property development (including expected liability
expense expenditure) will exceed the total property development revenue, the loss is expected
to be recognized as an expense immediately.
Property development costs that are not recognized as an expense are recognized as an asset
and are stated at the lower of cost and net realizable value. Where revenue recognized in the
income statement exceeds the bill to the purchaser, the balance is shown as billing accrued
under receivables, deposits and prepayments (in current assets). Where the bill to the buyer
exceeds the income recognized in the income statement, the balance is shown as gradual
billing under the creditor (in current liabili�es).

66

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k) Goodwill
The Group does not take into account internally generated goodwill. Inbusiness consolida�on
accounted for under the acquisi�on method, the goodwill arising is recognized as an asset at
the date of acquisi�on, measured at the difference between the cost of the investment and
the share of net assets acquired.
This goodwill is amor�zed on a straight-line basis for 10 years and is subject to an impairment
test when there is any indica�on of impairment
(l) Government grants
The Group does not recognize government grants, including non-monetary grants at fair
value, un�l there is reasonable assurance that the Group will comply with the terms of the
grant and that the grant will be obtained.
All government grants are recognized as income in the income statement systema�cally over
the period in which the Group recognizes related expense expenditure where the grant is a
related compensa�on. Balance that has not been recognized in profit or loss is treated as
deferred income which is a liability in the statement of financial posi�on.
Grants related to non-financial assets and other grants received but not recognized in profit
or loss are shown as deferred income and are recognized in profit or loss on a straight-line
basis over the useful lives of the relevant assets or the terms of the grant received, as applicable
.

67

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 21 DECEMBER 2019
(CONTINUED)

4 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Revenue recogni�on
Revenue is recognized upon delivery of products or services by customers.
Dividend income is recognized when the shareholders' right to receive payment is determined.
Contribu�ons from the Pahang Darul Makmur State Government and its agencies, interest
and rental income are taken into account on an accrual basis. Other contribu�ons are taken
into account when received.
(n) Revenue from the sale of logging concessions is recognized based on the logging license
issued according to the size of the license.

Employee benefits
The Group recognizes liabili�es when employees have provided services in exchange for
future employee benefits and expenses when the Group uses economic benefits arising from
services rendered by employees in exchange for employee benefits.
(i) Short-term employee benefits
Wages and salaries are accrued and paid on a monthly basis and are recognized as an
expense, unless it relates to the cost of producing inventory or other assets.
Paid absences (annual leave, maternity leave, maternity leave, sick leave, etc.) are allocated
for each period if they can be brought forward or in case they cannot be brought forward,
taken into account when they occur.
(ii) Post employment benefits
Compulsory con�bu�on plan
Group makes statutory contribu�ons to an approved savings fund and the contribu�ons made
are charged to profit or loss in the period in which it relates. Once the contribu�ons have been
paid, the Group no longer has the responsibility for payment.
Rest leave replcement
The Founda�on makes post-re�rement leave replacement for employees aged 40 years and
above and have served 10 years and above.

68

Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2019 (CONT’D)

5 Revenue Group Foundation

State Government contribution 2019 2018 2019 2018
Other agencies contribution RM RM RM RM
Interest income
Dividend income - 16,244,921 - 16,244,921
Fees on educational courses
conducted - 7,320,000 - 7,320,000
Logging concession
Interest and compound 2,548,940 482,237 2,522,751 460,742
Revenue from portfolio/annuity
manager 3,071,696 3,074,025 3,015,000 14,765,000
Lease
Sales of fresh fruit bunches 32,923,610 38,452,268 - -
Sales of oil palm seedlings 89,562,244 73,534,453 89,562,244 73,534,453

Scrap rubber sales 26,031 (100,296) 26,031 (100,296)
Rental
Impairment loss - 57,406 - 57,406
Revenue from Priya - - 50,794,250 14,139,841
Management fee 208,999,840
Others 553,123 210,600,804 - -
297,586 2,985,632 - -
1,115,700 - - -
- 1,088,576 380,200 358,340
363,000 - 531,287 -
100,425 - 363,000 -
193,601 - - -
339,755,796 21,049 193,601 14,951
147,388,364 126,795,358
353,761,075

Group and Foundation

2019 2018
RM RM

Revenue from portfolio/annuity manager are as follows: - 2,102
Net income - 55,304
Others - 57,406

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Yayasan Pahang

(Established at Pahang Darul Makmur State
under Enactment No.6 Year 1982)

NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2019 (CONT’D)

6 Profit From Opera�ons
The following items have been charged/ (credited) in arriving at the profit from
opera�ons:

Group 2018 Foundation 2018
RM RM
2019 2019
RM RM

Auditor’s remuneration 170,032 149,800 16,222 15,450
- Current year 3,000 (1,500) - -
- Short of previous years
Property, plant and equipment 59,961 17,968 - -
- Disposal (145,605,770) (42,574) (124,687,073) -
- Gain on disposal (2,086,019) (460,742)
Interest income (4,088,874) (1,088,576) (2,522,751) (358,340)
Rental (1,268,573) (3,074,025) (380,200) (14,765,000)
Gross dividend income (3,071,696) 2,300,000 -
Biological assets written off 342,536 (3,015,000) -
Inventory written off - 2,569,548 - -
- -
Impairment of business debtors - 21,405 -
Depreciation of investment
properties 21,405 --

(Profit) / Loss of fair value (858,213) 962,768 --
equity)
Reversal of impairment losses - (1,840,298) - (1,840,298)
6,899,949 1,040,870 --
- Debtors

Leasing expenses

70