Annual Report 2020

Yayasan Pahang

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

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

7 Director’s Remunera�on Group 2018
2019 RM
Director’s fee RM
Salary and other emoluments 1,187,000
1,065,000

1,172,682 980,315

2,237,682 2,167,315

8 Tax Group 2018 Foundation 2018
(a) Tax charge for the year RM RM
2019 2019
Malaysian income tax RM RM
- Current year
- Under/(Over) accrued of 951,040 783,302 588,646 83,602
previous year
(527,053) 13,825 (83,602) -
Deferred tax (Note 22) 423,987 797,127 505,044 83,602
Tax expense 819,000 1,792,000
1,242,987 2,589,127 - -
505,044 83,602

b) The amount of unabsorbed tax losses and deduc�ble temporary differences for the
Group and the Founda�on (which has no expiry date) where no deferred tax assets are
included in the statement of financial posi�on are as follows:

Group Foundation

2019 2018 2019 2018
RM RM RM RM

Unabsorbed tax losses 106,305,863 97,091,822 96,032,000 86,700,000

The deductible temporary 11,742,905 19,847,755 --
difference

71

Yayasan Pahang

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

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

8 Tax (CONT’D)
(c) Numerical reconcilia�on of income tax expense
The tax on the Group’s and the Founda�on’s profit before tax differs from the theore�cal amount
that would arise using the statutory income tax rate of Malaysia is as follows:

Group 2018 Foundation 2018
RM RM
2019 2019
RM RM

Profit /(loss) before tax 191,137,703 24,199,034 175,522,696 14,847,419

Tax calculated at the rate of 24% 45,873,049 5,807,768 42,125,447 3,563,381
(2016: 24%)
7,442,448 3,562,021 4,526,028 6,694,651
Tax effect of: (527,053) 13,825 (83,602) -
- Income not subject to tax
(16,495,955) (1,731,812) (15,414,312) (499,000)
- Under/(over) accrued in previous
year - (8,800) - -
- 182,000 - -
- Utilisation of previously 1,214,735 1,538,453 - -
unrecognised deferred tax asset (36,264,237) (6,774,328) (30,648,517) (9,675,430)
1,242,987 2,589,127 505,044 83,602
- current year deferred tax is not
considered

- reduction / (excess) of deferred
tax liabilities in previous year
- current year deferred tax assets
are not recognized
- tax-exempt income

Tax expense

72

Yayasan Pahang

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

73
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2019 (CONT’D)

9 Property, Plant and Equipment

Group Land and Buildings Renovations, Motor Plant and Assets under Total
Cost property and equipment Audio visual vehicle machinery construction RM
On 1 January 2019 development
Additions dormitories Horses and fixtures equipment RM RM RM 489,778,069
Reclassification costs 12,204,308 13,574,579 34,312,716 24,953,368
11,085,090 -
Transfer RM RM RM RM RM 1,308,376 546,060 (1,977,840) 203,237
Disposal 124,187,773 238,901,302 345,000 66,151,296 101,095 37,095 346,545 (12,612,185)
(257,180) -
Written off 2,659,295 7,817,458 - 1,537,089 - 415,768 (338,340) (1,679,886) (345,680)
(876,600) 1,716,948 - 753,852 - (80,262) 501,976,809
On 31 December 2019 - 44,648 - - (8,321)
- 1 - (541,765) - (285,595)
(3,726,957) (6,244,975) 13,871,664 41,731,759
13,599,690
-- - (51,764) -

122,243,511 242,190,734 345,000 67,893,356 101,095

Accumulated depreciation 7,608,561 49,853,572 206,998 49,429,475 100,394 7,189,059 9,057,914 4,628 123,450,601
980,072 8,741,533 51,749 3,593,229 - 1,429,804 1,223,311 1,543 16,021,241
On 1 January 2019 - - - (398,904) - -
Additions - - - 36,133 - 37,091 361,813 - 55,604
Reclassification (301,168) (359,136) - (484,111) - 47,193 (27,722) - (1,413,600)
- - - (43,107) - (46,068) (223,117) - (285,719)
Transfer (242,612) -
Disposal 8,287,465 58,235,969 258,747 52,132,715 100,394 8,414,467 - 6,171 137,828,127
Written Off 10,392,199
On 31 Disember 2019

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

9 Property Plant and Equipment (CONT’D)

Group Land and Buildings Renovations Motor Plant and Assets under Total
At 31 December 2018 property and , equipment Audio visual vehicle machinery construction RM
development Horses and fixtures equipment
dormitories RM RM RM 366,327,468
costs RM RM RM RM
5,015,249 4,516,665 34,308,088
RM 189,047,730 138,002 16,721,821 701

116,579,212

74

At 31 December 2019 113,956,046 183,954,765 86,253 15,760,641 701 5,185,223 3,479,465 41,725,588 364,148,682

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

9 Property Plant and Equipment (CONT’D) Property
development
Leasehold Government Agriculture Commercial Land without
costs
Group Freehold land land land land land H.S.D Total
RM RM RM
Cost RM RM RM RM RM
On 1 January 2019 11,415,116
Additions - 1,167,370 982,696 87,931,596 10,386,030 3,310,441 8,994,524 124,187,773
Reclassification - - - - - 769,235 1,890,060 2,659,295
- - - - - - (876,600) (876,600)
Asset Disposal - - - -
At 31 December 2019 11,415,116 (3,726,957) - (3,726,957)
1,167,370 982,696 84,204,639 10,386,030 4,079,676 10,007,984 122,243,511

75

Accumulated depreciation - 379,477 - 5,303,818 1,925,266 - - 7,608,561
On 1 January 2019 - 22,520 - - 980,072
Additions -- - 850,551 107,001 - - (301,168)
Asset Disposal - 401,997 - - 8,287,465
On 31 December 2019 - (301,168) -

- 5,853,201 2,032,267

Net book value: 11,415,116 787,893 982,696 82,627,778 8,460,764 3,310,441 8,994,524 116,579,212
At 31 December 2018

At 31 December 2019 11,415,116 765,373 982,696 78,351,438 8,353,763 4,079,676 10,007,984 113,956,046

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

9 Property Plant and Equipment (CONT’D)

Foundation Land and Buildings and Horses Renovations, Motor vehicle Audio visual Total
Cost property dormitories RM equipment and RM equipment RM
On 1 January 2019 development RM
Additions RM 345,000 fixtures 101,095 192,980,775
Classification costs - 6,345,698
- RM - -
Asset Disposal RM - (4,153,870)
-
At 31 December 2019 121,430,403 58,892,768 345,000 11,053,230 1,158,279 195,172,603
-
2,659,295 3,128,008 432,195 126,200
101,095
76 (876,600) 876,600 --

(3,726,957) - (426,913) -

119,486,141 62,897,376 11,058,512 1,284,479

Accumulated depreciation and impairment 7,229,084 10,315,568 206,998 10,337,356 691,630 100,394 28,881,030
On 1 January 2019 957,552 1,193,889 51,749 280,890 166,433 - 2,650,513
Current Charges (301,168) - - (426,833) - (728,001)
Asset Disposal 11,509,457 -
Pada 31 Disember 2019 7,885,468 258,747 10,191,413 858,063 100,934 30,803,542

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

9 Property Plant and Equipment (CONT’D)

Foundation Land and Buildings and Horses Renovations, Audio visual Total
property dormitories RM equipment and equipment RM
development
fixtures Motor vehicle RM
costs
RM RM
RM RM

77 At 31 December 2018 114,201,319 48,577,200 138,002 715,874 466,649 701 164,099,745
Net book value

At 31 December 2019 111,600,673 51,387,919 86,253 867,099 426,416 701 164,369,061
Net book value

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

9 Property Plant and Equipment (CONT’D)

Yayasan Freehold Government Agriculture Commercial Land without Property Total
land land land land H.S.D development RM
Cost
On 1 January 2019 RM RM RM RM RM costs 121,430,403
Additions RM 2,659,295
78 Reclassification 9,825,116 982,696 87,931,596 10,386,030 3,310,441 (876,600)
- - - - 769,235 8,994,524 (3,726,957)
Asset Disposal - - - - - 1,890,060
At 31 December 2019 - - - - (876,600) 119,486,141
(3,726,957)
9,825,116 982,696 84,204,639 10,386,030 4,079,676 -
10,007,984

Accumulated depreciation - - 5,303,818 1,925,266 - - 7,229,084
On1 January 2019 - 957,552
Current Charges - - 850,551 107,001 - - (301,168)
Asset Disposal - 7,885,468
At31 December 2019 - - (301,168) - -

- - 5,853,201 2,032,267 -

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

9 Property Plant and Equipment (CONT’D)

Foundation Freehold Government Agriculture Commercial Land without Property Total
land land land land H.S.D development RM
Net book value
At 31 December 2018 RM RM RM RM RM costs

RM

9,825,116 982,696 82,627,778 8,460,764 3,310,441 8,994,524 114,201,319

79 At 31 Disember 2019 9,825,116 982,696 78,351,438 8,353,763 4,079,676 10,007,984 111,600,673

Net book value of asset secured for loan facilities (Nota 21) are:

Group and Foundation

2019 2018
RM RM

Agriculture Land 8,168,896 8,260,300
Commercial Land
Buildings 27,275 27,620

3,626,915 3,710,914

Yayasan Pahang

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

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

10 Investment proper�es, at cost model

Group Freehold Leasehold Building Total
Kos land land RM RM
1 January/31 December
RM RM
Accumulated depreciation and
impairment 785,000 2,140,500 4,135,533 7,061,033
1 January
Current charges - 515,862 4,135,527 4,651,389
31 December
- 21,405 - 21,405
Net book value:
31 December 2018 - 537,267 4,135,527 4,672,794
31 December 2019
785,000 1,624,638 6 2,409,644
785,000 1,603,233 6 2,388,239

The Group has adopted a cost model to measure its investment proper�es since without undue cost or effort,
a reliable fair value was not available.

80

Yayasan Pahang

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

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

11 Biological assets, at cost model Group 2018
RM
At 1 January 2019
Gross carrying amount RM
Accumulated depreciation
Net carrying amount 533,798,774 504,556,031
(97,315,821) (82,738,422)
Addition due to new expenditure 436,482,953 421,817,609
Asset Disposal
Written Off 20,783,510 30,545,455
Classification of property, plant and equipment (39,605,777) -
Depreciation for the current year
- (2,300,000)
At 31 December - 997,288
Gross carrying amount (15,357,809)
Accumulated depreciation (14,577,399)
Net carrying amount
512,072,989 533,798,774
(109,770,112) (97,315,821)
402,302,877 436,482,953

81

Yayasan Pahang

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

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

12 Goodwill from consolida�on Group 2018
2019 RM
At 1 January RM 89,367
Addition to the new business integration 79,438
Impairment during the year 7,099
Amortization during the year -
On 31 December (7,099)
-
13 Development expenditure (9,929)
(9,929)
Consultant fees for 79,438
development of palm factory 69,509
Others
Group 2018
RM
2019
RM 350,918

7,235,502

281,400 -
7,516,902 350,918

14 subsidiaries Foundation 2018
RM
Unquoted investments, at cost 2019
- at start of the year RM
- new investment
- increase in paid-up capital 148,231,939 141,230,939
- at end of the year - 1,000
Allowance for impairment
1,800,000 7,000,000
150,031,939 148,231,939
(21,185,477) (19,587,425)
128,846,462 128,644,514

82

Yayasan Pahang

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

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

14 Subsidiaries (Cont’d)

Details of the subsidiaries are as follows:

Country of Percentage of equity held

Name of company incorporation Principal activities

Foundation Subsidiaries

2019 2018 2019 2018
% %% %

YP Plantation Holdings Sdn Malaysia 100 100 - - Investment holding and
Bhd oil palm plantation

YP Mining Sdn Bhd Malaysia 100 100 - - Investment holding &
mining

KYP Education Sdn Bhd Malaysia 100 100 - - Investment holding &
education provider

Tahfiz Pahang Sdn Bhd Malaysia 100 100 - - Managing Tahfiz Al-
Quran & education

YP Hevea Sdn Bhd Malaysia 100 100 - - Investment holding &
rubber plantation

YP Land Sdn Bhd Malaysia 100 100 - - Planting and selling palm
seedlings

YP Agro Sdn Bhd Malaysia 100 100 - - Forest planting, export
and import of plants for

planting

YPPH Growers Sdn Bhd # Malaysia - - 100 100 Planting and selling palm
seedlings

YPPH Palm Oil Mill Sdn Bhd # Malaysia - - 100 100 Pengilangan minyak Palm
oil refineries. Dormant

KYP Skills Sdn Bhd ## Malaysia - - 100 100 Education provider

IKIP-KLC Sdn Bhd ## Malaysia - - 90 90 Dormant

IASC Holdings Sdn Bhd ### Malaysia - - 100 100 The food business,
boutique, guest houses

and restaurants

Maahad Gemilang Sdn Bhd Malaysia - - 100 100 Childcare centre
####

# Subsidiaries of YP Plantation Holdings Sdn Bhd
## Subsidiaries of KYP Education Sdn Bhd

### Subsidiaries of KYP Skills Sdn Bhd
#### Subsidiaries of Tahfiz Pahang Sdn Bhd

These comapnyies are not audited by National Audit Department

83

Yayasan Pahang

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

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

15 Associates

Group 2018 Foundation 2018
RM RM
2019 2019
RM RM

Unquoted investments, at cost 2,303,000 2,303,000 425,000 425,000
(1,877,999) (1,877,999) - -
Impairment losses
425,001 425,001 425,000 425,000
Net book value and share of The
Group net assets

Name of company Country of Percentage of equity Principal activities

incorporation held

Touch Matrix Sdn Bhd Malaysia Foundatio Subsidiaries
Malaysia n
YP Maintenance Sdn Bhd Malaysia
Malaysia 201 2018 2019 2018
Global Sterling Wood Industries 9 %% %
Sdn Bhd %

Peak Crop Sdn Bhd 20 20 - - Build telecommunication
towers

30 30 - - Maintenance of major
roads of Pahang State

- - 30 30 Logging and sawmills.

Dormant

- - 40 40 Dormant

84

Yayasan Pahang

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

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

16 Other investments Group 2018
RM
Long term investments 2019
Quoted investments, at cost RM
Investment in gold, at cost
Unit trust 3,003,280 2,704,243
Market price: 542,754 462,918
Quoted investments
3,979,637 3,500,297
Unit trust 7,525,671 6,667,458

17 Student Debtors 3,003,280 2,704,243
3,979,637 3,500,297
Student debtors
Impairment losses Group and Foundation
Due in 12 months
Due after 12 months 2019 2018
RM RM
18 Inventory
289,767,914 292,424,765
Disposable materials
Nursery (63,564,106) (63,564,106)

226,203,808 228,860,659

(19,000,000) (19,000,000)

207,203,808 209,860,659

Group 2018
RM
2019
RM 6,758,497

4,551,992

2,115,104 3,343,305

6,667,096 10,101,802

85

Yayasan Pahang

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

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

19 Other receivables, deposits and prepayments

Group Foundation

2019 2018 2019 2018
RM RM RM RM

Tabung Pusingan Pendahuluan - 120,000 - 120,000
Anak Negeri Pahang 33,763,586 32,573,597 - -
(5,235,183) (5,235,183) - -
Receivables 28,528,403 27,338,414 - -
Impairment losses 846,282
5,580,204 4,874,898 - 509,353
Other receivables (347,573) (377,927) 846,282 (30,354)
Impairment losses 5,232,631 4,496,971 21,942,251 478,999
23,376,349 33,123,430 - 32,417,563
Prepayments (378,022) 21,942,251 (378,022)
Impairment losses - 32,745,408 32,039,541
23,376,349
Amount due to related
company 1,277,608 1,277,559 - -
Impairment losses (17,652) (17,652) - -
- -
Deposit 1,259,956 1,259,907 738,470 744,254
Amount due from a holding 4,388,167 2,987,505
61,754,776 75,723,508
company - - 85,281,779 109,106,302
62,785,506 68,948,205

The amount due from subsidiaries are advances which are unsecured, free of interest and repayable on demand.

86

Yayasan Pahang

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

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

20 Cash and cash equivalents

Group Foundation

2019 2018 2019 2018
RM RM RM RM

Deposits with licensed banks 92,631,447 62,125,147 49,216,907 13,346,483
Fixed deposits 500,000 500,000 - -
Cash and bank balances
Deposits, cash and bank balances 33,634,167 29,817,058 7,356,433 16,713,500
Bank overdrafts – secured 126,765,614 92,442,205 56,573,340 30,059,983
(16,994,859) (78,000,931) (56,752,076)
Deposits pledged as security 109,770,755 14,441,274 - (26,692,093)
Cash and cash equivalents (13,014,012) (12,531,237) 56,573,340 (8,471,253
(8,727,360) (35,163,346)
96,756,743 1,910,037 47,845,980

Fixed deposits pledged to the bank, for the Group and the Founda�on, are collateral for loan facili�es (Note 22)
and bank overdra�s.

21 Borrowings

Group 2018 Foundation 2018
RM RM
2019 2019
RM RM

Current 1,344,531 1,095,168 --
Hire purchase (secured) 24,327,303 31,459,452 - 13,738,060
Bank borrowings (secured) 13,868,580 22,339,833 - 8,471,253
Revolving credit (secured) 16,628,747 - 16,628,747
Revolving credit (unsecured) - 71,523,200 - 38,838,060
39,540,414

No current 3,729,053 3,879,404 --
Hire purchase liabilities (secured) 115,817,612 120,261,024 --
119,546,665 124,140,428 --
Bank borrowings (secured)

87

Yayasan Pahang

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

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

21 Borrowings (CONT’D) Group 2018
RM
Hire purchase liabilities 2019
Minimum hire purchase payments: RM
- Not more than 1 year
- Later than 1 year and not later than 5 years 1,568,004 1,284,530
- Later than 5 years 4,311,495 4,493,903

Future finance charges on hire purchase 70,982 48,968
Present value of hire purchase liabilities 5,950,481 5,827,401
(876,897) (852,829)
5,073,584 4,974,572

Hire purchase liabilities: 1,344,531 1,095,168
- current liabilities 3,729,053 3,879,404
5,073,584 4,974,572
- Non-current liability

Present value of hire purchase and liabilities: 1,344,531 1,095,168
- Not more than 1 year 3,671,611 3,833,774

- Later than 1 year and not later than 5 years 57,442 45,630
5,073,584 4,974,572
- Later than 5 years

a) Bank borrowings are pledged against property, plant and equipment (Note 9), fixed
deposits (Note 20) and corporate guarantees of the Foundation

b) Lease liabilities are secured because the right to hire is reversed to the lessor in the
event of a breach of the agreement.

88

Yayasan Pahang

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

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

22 Deferred tax asset/(liabili�es)

Deferred tax assets and liabilities are offset when there is an enforcement right to offset
current tax assets against current tax liabilities and when the deferred tax relates to the same
tax authorities. The amounts in the balance sheet, after appropriate offsetting, are as follows:

Group

2019 2018
RM RM

Deferred tax liabilities 92,668,000 91,849,000

At start of the year 91,849,000 90,057,000
Charge to income statement (Nota 8)
- biological assets 819,000 2,310,000
- property, plant and equipment - (514,000)
- tax losses -
(4,000)
At end of the year 819,000 1,792,000
92,668,000 91,849,000

Deferred tax liability (before settling) 12,613,000 9,111,000
- property, plant and equipment 83,024,000 83,024,000
- biological assets 95,637,000 92,135,000
(2,969,000)
Offset 92,668,000 (286,000)
Deferred tax liability (after settlement) 91,849,000
(2,969,000)
Deferred tax assets (before settling) 2,969,000 (286,000)
Offset 286,000
Deferred tax asset (after settlement) -
-

89

Yayasan Pahang

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

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

23 Government Grant Group and Foundation

Current 2019 2018
Non current RM RM

16,779 -

698,705 -

715,484 -

24 Payables Group 2018 Foundation 2018
RM 2019 RM
Trade Payables 2019 RM
Preliminary results of timber sales RM -
Other Payables -
Accrued Liabilities 16,014,109 35,101,782
Deposit
The amount due to subsidiaries 19,073,381 87,838,035 19,073,381 87,838,035
Deferred Revenue
14,716,307 15,122,707 5,500,591 5,541,298

11,523,778 19,134,357 - 6,345,000

24,659,275 37,238,379 23,053,556 35,505,323

-- 2,486,303 3,566,258

2,983,209 3,284,118 324,000 360,000

88,970,059 197,719,378 50,437,831 139,155,914

The amount due to subsidiaries is interest free, unsecured and repayable on demand.

Deferred revenue is tuition fees, food and accommodation of the students received first and
ground rent income from subsidiaries

25 Approval of Financial Statements

The financial report has been approved for issuance by the Board of Trustees on 26 April
2019.

90

91

YAYASAN PAHANG,
Kompleks Yayasan Pahang, Tanjung Lumpur, 26060 Kuantan,

Pahang Darul Makmur

Tel: 09-518 1800 Faks: 09-518 1888
Laman web: www.yp.org.my E-mail: [email protected]