Core Values, Vision & Mission 3. Corporate Information, Board Committees, Management Team 4. Corporate Structure 5. 5 Years Financial Highlights 6

Transcription

1 Annual Report 2017

2 IIUM Holdings Sdn Bhd table of contents»» Core Values, Vision & Mission 3»» Corporate Information, Board Committees, Management Team 4»» Corporate Structure 5»» 5 Years Financial Highlights 6»» Chairman s Statement 7-11»» Group CEO s Review 12-16»» Board of Directors 17-19»» Director s Profile 20-25»» Corporate Report 27-47»» Financial Statements »» Corporate Directory

3 Annual Report DILIGENCE 4 LOYALTY CORE VALUES 3 TRUSTWORTHY 1 COURAGE 2 DISCIPLINE VISION & MISSION Vision»» To be the leading University-Based Company Internationally. Mission»» We pledge to offer excellent services and value to our customers by our strategic resources and expert areas. While venturing into hi-tech areas, we continue to uphold our Core Values and business ethics.»» As the business arm of the University, we are committed to promote and commercialize our expertise and products. While doing this, we will simultaneously inject and inculcate the culture of entreprenuership in the community.»» In aiming for profitable returns for the Company, we also strive to meet our financial obligations to the University while at the same time, being attentive to our employee s welfare and development.

4 4 IIUM Holdings Sdn Bhd Corporate Information Chairman Tan Sri Dato Seri Utama Dr. Rais Yatim Deputy Chairman Tan Sri Dato Sri Dr. Abdul Aziz bin Abdul Rahman Board of Directors Prof. Dato Sri Dr. Zaleha binti Kamarudin Dato Ahmad Zailan bin Shaari Prof. Dato Sri Dr. Ashgar Ali bin Ali Mohamed Dato Rosini binti Abd. Samad Dato Jamaludin bin Hassan Datuk Ir. Khalilur Rahman bin Ebrahim Registered Office Level 3, Administration Building, Central Complex, International Islamic University Malaysia Jalan Gombak, Kuala Lumpur No. Tel : (+603) No. Fax: (+603) Principal Banker Bank Islam (M) Berhad Company Secretary Inong Putri binti Abdullah (LS ) Auditors Messrs Afrizan Tarmili Khairul Azhar (AF 1300) Board Committees Audit Committee Dato Rosini binti Abd. Samad - Chairman Dato Jamaludin bin Hassan - Member Prof. Dr. Mushera Bibi binti Ambaras Khan - Member Assoc. Prof. Dr. Noraini binti Mohd Ariffin - Member Nomination & Remuneration Committee Tan Sri Dato Sri Dr. Abdul Aziz bin Abdul Rahman - Chairman Dato Rosini binti Abd. Samad - Member Datuk Ir. Khalilur Rahman bin Ebrahim - Member Remedial, Grievances & Disciplinary Committee Dato Jamaludin bin Hassan - Chairman Dato Rosini binti Abd. Samad - Member Prof. Dato Sri Dr. Ashgar Ali bin Ali Mohamed - Member Management Team Group Chief Executive Officer Dato Haji Naharudin bin Ali Group General Manager Tuan Haji Alias bin Abdul Majid Group Internal Auditor Naaimah binti Ahmad Radzi Group Company Secretary Inong Putri binti Abdullah Group Legal Advisor Nik Haizam binti Nik Jaafar

5 Annual Report Corporate Structure EDUCATION SECTOR IIUM Centre for Continuing Education Sdn Bhd IIUM Higher Education Sdn Bhd IIUM Schools Sdn Bhd IIUM Educare Sdn Bhd CONSULTANCIES & SERVICES IIUM Entrepreneurship & Consultancies Sdn Bhd IIUM Advanced Technologies Sdn Bhd IIUM Corporate Management Sdn Bhd IIUM Shariah Advisory Services Sdn Bhd HEALTHCARE & OTHERS SECTOR IIUM Medical Specialist Centre Sdn Bhd IKOP Sdn Bhd IIUM Properties Sdn Bhd Daya Bersih Sdn Bhd

6 6 I I U M H o l d i n g s S d n B h d 5 Years Financial Highlights 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 Actual Turnover (RM 000) 106, , , , ,297 Operating Profit (RM 000) 12,343 13,090 12,297 6,004 10,494 Profit Before Tax (RM 000) 11,072 11,712 11,094 5,100 7,028 Net Profits (RM 000) 6,180 5,527 7,467 1,277 1,881 Total Shareholder Fund (RM 000) 14,474 20,002 27,468 28,746 30,626 No. of Shares Issued ( 000) 5,000 5,000 5,000 5,000 5,000 Earnings Per Share (RM) NTA per share (RM) TURNOVER PROFIT BEFORE TAX RM Million RM Million NET PROFIT TOTAL SHAREHOLDERS FUNDS RM Million RM Million

7 Chairman s Statement Group CEO s Review

8 8 IIUM Holdings Sdn Bhd Chairman s Statement Year 2017 marked another successful year for the Group. Turnover reached unprecedented level of RM142.0 million and helped the Group to bounced back to achieve higher Profits Before Tax of RM7.0 Million Tan Sri Dato Seri Utama Dr. Rais Yatim Chairman

9 Annual Report On behalf of the Board of Directors, I am pleased to present the Annual Report and Audited Financial Statements of IIUM Holdings Group for the year ended 31st December Economic Landscape The Malaysian economy grew much higher at 5.9% in Government coffers improved with contributions from GST and bolstered by higher world oil prices. The overall improvements in the economy and together with the effectiveness of Bank Negara Malaysia s strategic measures and foreign exchange hedging flexibilities helped the Ringgit to gain more than 10% against the USD. The better economy overall augers well for the Group and Alhamdulillah, by the Grace of Allah, the Group reached new heights in business turnover and marked another successful year of profitability. Performance Highlights For the year under review, the Group recorded further growth in turnover and achieved an unprecedented level of RM142 million. The strategy to move into the high growth healthcare sector paid dividends with tripling of turnover from the medical specialist centre and pharmaceuticals business to more than RM5 million in turnover. The Group is upbeat on doubling of turnover annually over the next 2-3 years as the medical specialist centre under IIUM Medical Specialist Centre Sdn Bhd (imsc) open up more beds to the public, and IKOP Sdn Bhd (ikop) widened its product range of pharmaceutical products and supplies. The pre-school business under IIUM Educare Sdn Bhd (ieducare) continued to show strong growth. ieducare is now the operator for MIDA, Telekom Malaysia and Tenaga Nasional. The new businesses under consultancy and technology also recorded high growth in their businesses. At the Profit Before Tax (PBT), the Group managed to record an increase of nearly than 50% from previous year to RM7.0 Million for This is despite the losses made by IIUM Higher Education Sdn Bhd (ihesb) which manages the International Islamic College (IIC) due to low student population, and the healthcare sector which is undergoing gestation period. Most of the other subsidiaries recorded profits with IIUM Schools Sdn Bhd (ischools) and FMS business under Daya Bersih Sdn Bhd (Daya Bersih) leading the charge. The drastic cost cutting measures implemented at IIC is also showing positive results with a much lower loss before tax of RM1.5 million against RM3.5 million previously. The Board of IIC has decided to extend the moratorium on annual salary increments as well as curtailments of new recruitments to turn around to profitability in Human Capital TURNOVER MILLION We are ever committed to our number one asset, i.e., our employees. We will continue to nurture a safe and inspiring workplace where employees can actualize their full potentials whilst contributing to the Group s growth. Despite having curtailed annual increments at the beginning of the year, the Group introduced several enhanced benefits to incentivized the talent pool including increasing medical benefits entitlements. Amidst newspaper reportings with as much as 60,000 employees being retrenched in 2017, the Group is taking a long-term view by retaining its employees and preparing them for the upswing in the economy. We are ever conscious on the need to reward high performing individuals and exceptional caliber within the Group. Special management programs have been tailor-made to empower employees showing high-potentials and accelerate their career development. All employees are constantly provided access to training and skills improvement to maintain the competitive edge among the university holding companies. The Group also has a role to play in developing the next generation of talents. We are continuing the on-the-job training programme for fresh graduates under the Skim Latihan 1Malaysia (SL1M) and internship positions for students from the various faculties of the International Islamic University Malaysia (IIUM).

10 10 IIUM Holdings Sdn Bhd The new salary scheme of service which have been drafted earlier will be implemented in January 2018 and this will ensure that we remain competitive in the employment market and boost staff morale. With education as our core business, we will continue with our Budi program to enculture future generations. The Budi culture programs for students will be an add-on co-curricular activities at the college and school levels throughout the Group. Community Outreach The Group is ever mindful of its social responsibilities to the community at large. Community outreach programs undertaken by the various units within IIUM and in conjunction with the Office of the IIUM President will continually be sponsored and funded by the Group. An annual budget of at least RM500,000 has been allocated as our way of giving back to society. In addition, the Group is also continuing with its sponsorship of student activities and activities of the Sultan Haji Ahmad Shah s mosques especially for iftars during the holy month of Ramadhan Al-Mubarak as well as qurban activities during Eidul Adha celebrations. Outlook Diversifying our business income stream has always been our strategic long-term plan for growth and sustainability. The Budget 2018 as announced by YAB Prime Minister clearly highlights the emphasis on the development of healthcare sector. The Ministry of Health has been allocated a budget of RM26.6 billion of which RM2.5 billion has been apportioned for medical supplies. The Group therefore is well positioned through IKOP to capitalize on the growth of medical supplies including generic drugs. The first monthly delivery of the 25,000 tubes of 25mg igesic by ikop to Pharmaniaga Logistics Sdn Bhd (Pharmaniaga) will be made in April Pharmaniaga has already hinted on the possibility of increasing the monthly orders for delivery of up to 80,000 tubes. The Group is therefore committed to invest much higher for additional equipment, working capital and production on dual shifts to meet the higher volume. imsc too will be opening up more beds as the number of patients continue to double from previous years as well as widen the range of medical specialty services. With the increase in the volume of business, imsc may be able to turnaround and achieve profitability as early as 2019, or within 4 years of business operation. Notwithstanding that imsc is projected to make more losses in 2018, the potentials remains very bright with exponential growth in turnover over the next few years. Emulating the success of other University owned companies, the Group will direct a substantial portion of its resources towards property and property related business. The RM78 million student hostel in Pagoh recently completed in 2017 is now generating rental income of more than RM10 million per annum and will translate to a profit contribution of nearly RM2.0 million a year. We are therefore looking seriously to increase our involvement in the property segment. The re-development of the R&R Gombak complex adjacent to the KL-Karak highway is part of our initiative to monetize the assets of the University and will commence works towards the end of Upon completion in year 2020, the University will be a having a RM35 million complex capable of generating rental income of RM4 million annually.

11 Annual Report Acknowledgement and Appreciation As the Group venture into another year of bright prospects, I would like to extend my thanks to all those that have been an integral part of our success. Our continued growth has truly been the collective efforts of many parties. My heartful thanks to my fellow Board members who have constantly been very supportive in guiding the Group all these years. To our shareholders, the International Islamic University of Malaysia, we are truly grateful for the immense support given throughout the years and we are committed to reciprocate by improving our earnings potentials and increasing their shareholder s value. We are also truly grateful and very appreciative to all our other stakeholders, our customers, the authorities, bankers and financiers, clients, business partners and associates who have all played an instrumental part in our overall success. Last but not least, my sincerest appreciation to the management and staff for their hard work and dedication to give the best in performing their daily duties during the year. I look forward for their continued efforts and teamwork as we venture into the new year with a mission to achieve even greater heights than ever before. Tan Sri Dato Sri Utama Dr Rais Yatim Chairman

12 12 IIUM Holdings Sdn Bhd Group CEO s Review Another new chapter in our history and another new achievement Dato Haji Naharudin Ali Group Chief Executive Officer

13 Annual Report After the dip in the performance in 2016, the Group witness a revival of its business and recorded further growth in During the year, we reinforced our business focus and expansion into the high growth area of healthcare business. Once again, we were able to prove our capacity for business sustainability and I am pleased to report that we recorded new heights in our business volume. The overall improvement in the economy, together with strengthening of the Ringgit augers well for the Group. The improvements in world oil prices and contributions from GST boosted government spending and has a positive impact on the Group. Budget cuts in allocation are still evident in overall operating expenditure of the University but the Group was able to more than offset the reduction in income from internal generation from the University and focus of its external business. Financial Highlights Against uncertainties and lower operating budget from IIUM, we are able to build on our strong foundation and recorded another high in turnover of RM142 million. This was despite the drop in the turnover of the Education business, in particular the low student population at the International Islamic College (IIC) as well as reduction on the number of JPA sponsored for the A-level programs at the International Islamic Schools (IIS). The Group s investment in the RM78 million student hostel and RM8.5 million Wadi Budi Student Centre started to contribute to the top and bottom line. The turnover from these two investments is more than RM10 million and profit contributions of RM2.0 million, annually. RM Million TURNOVER The Group also saw a revival in its performance of its profitability when we recorded a Profit Before Tax (PBT) of RM7.0 million, against RM5.1 million previously. Due to implementation of strict guidelines by Lembaga Hasil Dalam Negeri relating to deposits collected and deferred income at its schools and college, we had to provide for taxation cost of more than RM5.0 million resulting in the Profit After Tax dipping below the RM2.0 million mark. The tax liabilities are however timing difference and will be reduced accordingly in future years. Operational Highlights The Education sector saw a mixed in performance with improvements in training services under IIUM Centre for Continuing Education Sdn Bhd (ICCE) and pre-school education by IIUM Educare Sdn Bhd (ieducare). ieducare in particular managed to have a strong footing in the government agencies and government link companies (GLC). The outlets at MIDA, TMB and TNB grew in children s enrolment and were the major contributors to the growth of more than 35% in turnover of the pre-school business. IIUM Schools Sdn Bhd (ischools) which has, in previous years, been the star performer, took a step back during the year. Despite increasing its student enrolments for Setiabudi Primary School, ischools could not maintain last year s turnover figures due to the drop in the number of JPA sponsored students for the A-level program at International Islamic School. The International Islamic College (IIC) managed by IIUM Higher Education Sdn Bhd (ihesb) is again bogged down by low student population but extra focus on marketing and stringent cost cutting measures put in place in 2017 will likely see ihesb turning around to profitability towards end of The strategy to venture into the high growth area of healthcare is showing positive results with turnover more than triple that of IIUM Medical Specialist Centre Sdn Bhd (imsc) managed to register as panel healthcare service provider with the big insurance companies like AIA and BSN Prudential in 2017 and resulted in rapid growth of patient numbers. The medical centre is expected to enjoy exponential growth in turnover over the next few years but will only be expected to show profitability sometime towards the end of 2019 when monthly turnover exceeds RM1.0 million and imsc achieved economies of scale in its operations. The pharmaceutical business under IKOP Sdn Bhd (ikop) is also showing signs of turnaround in its profitability. ikop has recently signed a supply agreement with Pharmaniaga Logistics Sdn

14 14 IIUM Holdings Sdn Bhd Bhd to supply 25,000 tubes of igesic a month to government hospitals and clinics under the Ministry of Health local vendor development program. The first delivery is expected in April 2018 and the annual sales contribution will exceed RM1.0 million. The FMS business under Daya Bersih Sdn Bhd (Daya Bersih) is also showing very good progress despite reduction in the scope of contract with its major client, the International Islamic University Malaysia. Its strategy to be less dependent on internally generated business is paying dividends. In 2017, Daya Bersih managed to secure the FMS contract with Malaysian Multimedia University as well as KWSP offices in Sarawak. The external business is expected to exceed RM10 million annually and contribute 20% to its overall business. The property business under IIUM Properties Sdn Bhd (iproperties) took a downswing upon the completion of most of its projects in iproperties is already planning for more construction and development projects to ensure long-term sustainability. The Consultancies and Services Sector is showing improvements with turnover increasing by more than 50%. The Group has already identified the technology segment to expand this sector and a niche area for growth. At the holding company level, IIUM Holdings Sdn Bhd (iholdings) took over vacant possession of the student hostel complex from the developer in August 2017 and the rental income help to boost the turnover by more than 50%. The Education sector continued its dominance in contributing to the Group s Profit Before Tax (PBT). ischools remained the major contributor in the sector. ICCE saw a drop in the profitability despite showing higher turnover. The cost cutting measures implemented at IIC resulted in ihesb recording much lower losses as compared to previous year. We are particularly proud with our pre-school business in which ieducare has managed to turnaround to profitability with strong contributions from its branches outside IIUM campuses especially the government and GLCs branches. The Healthcare sector registered losses in 2017 and will continue to do so at least over the next 1-2 years. It is a conscious decision by the Group as the potentials for the healthcare sector remains high and will become a substantial contributor to both top and bottom lines for the Group in the medium to long term. The improvements in turnover for Daya Bersih correspondingly resulted in generating much higher profits. Daya Bersih is the second most profitable company after ischools. Despite reduction in turnover due to the completion of construction and development projects in 2016, iproperties was able to show a profit for the year due to reversal of overprovisions made in previous years. The profitability performance of the consultancy and technology companies is mixed with IIUM Healthcare RM -3.2 Mil Others RM59.3 Mil TURNOVER Consultancies RM16.3 Mil Healthcare RM5.2 Mil PROFIT BEFORE TAX Others RM4.4 Mil Education RM5.5 Mil Education RM61.5 Mil Consultancies RM0.4 Mil Entreprenuership & Consultancies Sdn Bhd and IIUM Corporate Management Sdn Bhd showing higher turnover and profitability whilst IIUM Advance Technologies Sdn Bhd and IIUM Shariah Advisory Services Sdn Bhd registerering losses for 2017.

15 Annual Report Sustainability We are also redirecting our focus on the technology areas and are committed on commercialization activities. iat will continue to collaborate with startups and SME business to create new markets for its recbromelain. The Lard & Alcohol Detection (LadPen) will soon be placed in the market after spending two years in industrial redesigning for commercial purposes. We will be required to invest heavily to realise some of these potentials. Promising Future Other than organic growth, the Group s investments in properties in 2017 will provide the growth in turnover over the next few years. To emphasis further on this strategy, the Group intends to focus on development of the landbanks of IIUM. We have already submitted and obtained the approval from IIUM to re-develop the R&R complex adjacent to the KL-Karak highway. The Group is ever ready to face the challenges what the future unfolds. The dip in profitability in 2016 is only a step back before a revival to scale new heights. Whilst tough market conditions are expected to persist in the year ahead, the Group is well positioned to reach RM160 million in turnover for 2018 and hopefully the RM200 million mark by Year 2020 with the strategies in place. The RM35 million complex will be expected to commence work towards end of Upon its completion in year 2020, the complex will generate rental income of RM4.0 million a year. iproperties is also assisting IIUM to develop a 74 acre land just outside the Gombak campuses, known as the South Zone. Several big companies have shown interest and submitted proposals for joint development but the project can only commence once the land matters has been resolved. The Group will also continue to invest in the healthcare sector. The medical centre will require at least another RM4.0 million of additional investments for medical equipment. Similarly, ikop will require more funding for purchase of additional test equipment and working capital as it increases its production and sales volume. The business of private education at college level is expected to remain competitive. ihesb will therefore be focusing on niche market and introduce new diploma programs in law & shariah practice, cybersecurity as well as halal management. The Group will continue to aggressively push for growth in the pre-school and school levels. Both ieducare and ischools will be looking at additional branches to increase their student population. Healthcare services cost will continue to rise and the Group is well poised to capitalize on this potential. imsc is expected to double its turnover every year over the next 2-3 years as more beds are being commissioned and the range of specialty medical services are widened. ikop too will be offering more pharmaceutical products that are undergoing registration process with National Pharmaceutical Registration Agency.

16 16 I I U M H o l d i n g s S d n B h d The FMS business is also expected to grow as Daya Bersih is now able to penetrate the external market. iproperties have already submitted proposals for development and construction projects, although physical work is expected to commence towards end of 2018 or early The consultancy and services business will continue to mature further and double its turnover every year. The Group however is still keen on commercialization of innovative products developed by the University but have yet to realize these potentials. At the holdings company level, the student hostel in Pagoh will be expected to contribute at least RM10.0 million annually in gross rental. Upon completion of the R&R complex re-development project in year 2020, as stated above, iholdings will be given the concession to managed the complex and this will generate at least RM1.5 million to its profitability annually. The Group therefore is well positioned to achieve growth in its business. Acknowledgement and Appreciation The Group s success has been without doubt the efforts of many. Firstly, my heartful thanks to the team of workforce in the IIUM Holdings family, all of whom have demonstrated their commitment and given their very best in our ongoing quest for success. It has been a pleasure working with the management team and employees and I look forward to lead them yet again towards greater heights for years to come. I would also like to express my appreciation to our customers, suppliers, business partners and most importantly our shareholders, International Islamic University Malaysia for their continued trust and unrelenting support. Finally, I am truly grateful to the Board of Directors for their strong support and guidance throughout my tenure as the primary driving force for the Group. I therefore pledge to give my best and guide the Group to achieve success as we embarked on the new fiscal year with the challenges that meets our way. Dato Haji Naharudin Ali Group Chief Executive Officer

17 Board of Directors

18 18 IIUM Holdings Sdn Bhd Board of Directors

19 Annual Report Standing from left Dato Jamaludin bin Hassan, Dato Ahmad Zailan bin Shaari, Dato Rosini binti Abd. Samad, Tan Sri Dato Sri Dr. Abdul Aziz bin Abdul Rahman (Deputy Chairman), Tan Sri Dato Seri Utama Dr. Rais Yatim (Chairman), Prof. Dato Sri Dr. Zaleha binti Kamarudin, Prof. Dato Sri Dr. Ashgar Ali bin Ali Mohamed, Datuk Ir. Khalilur Rahman bin Ebrahim.

20 20 IIUM Holdings Sdn Bhd Director s Profile YBHG. TAN SRI DATO SERI UTAMA DR. RAIS YATIM Chairman of IIUM Holdings Sdn Bhd Tan Sri Dr. Rais Yatim is the current President of International Islamic University Malaysia (IIUM). He is also the Special Adviser to the Malaysian Government on socio-cultural matters, with ministerial status. Tan Sri Dr. Rais Yatim has had a long and chequered career in Malaysian politics and administration. His political career took off in 1974 with his appointment as Parliamentary Secretary to the Ministry of Culture, Youth and Sports under Tun Abdul Razak, Malaysia s second Prime Minister. He spearheaded Malaysia s main anti-drug movement in 1976 when he formed PEMADAM, the National Anti-Drug Association and became its president for 11 years ( ). Since 1976 he has served under all subsequent Prime Ministers and has held various ministerial portfolios, including: Parliamentary Secretary Culture Youth & Sport ( ) Deputy Minister of Law ( ) Deputy Minister of Home Affairs ( ) Chief Minister of the State of Negeri Sembilan ( ) Minister of Land and Regional Development ( ) Minister of Information ( ) Minister of Foreign Affairs ( ) Minister in the Prime Minister s Department legal portfolio ( ) Minister of Culture, Arts and Heritage ( ) Minister of Foreign Affairs (19 Mac 2008 Mac 2009) Minister of Information, Communication and Culture ( ) Socio-Cultural Advisor to the Government (2013 present) Tan Sri Dr. Rais who holds an LL.B (Hons.) degree (1973) from the University of Singapore and a Ph.D in Law (1994) from King s College, University of London is also a qualified specialist language teacher, graduating from Malaysia s Language Institute in Pursuant to this niche qualification he was enlisted thereafter to teach Bahasa Melayu to the American Peace Corps volunteers in DeKalb Illinois and Hawaii, USA. A qualified lawyer, he was called to the Malaysian Bar in 1973 during which period he set up his legal practice Ram Rais and Partners in Kuala Lumpur. He was called to the Singapore Bar in A keen photographer-writer, Dr. Rais has written extensively on various topics, especially on law, politics and social engineering and published extensively. Among his major works are Patterns of Anthropology (Translation 1973), Faces in the Corridors of Power (1978), Executive Power and Rule of Law in Malaysia (1995), Zaman Beredar Pusaka Bergilir (2001), Jelebak Jelebu Coratcoret Anak Kampung (2005), Cabinet Governing in Malaysia (2006), Pantun & Bahasa Indah : Jendela Budaya Melayu (2013) and his latest work, Adat: The Legacy of Minangkabau. Presently Dr. Rais is spearheading the BUDI (Virtue) programme a promotion geared towards a virtue-practical society with accent on University life.

21 Annual Report YBHG. TAN SRI DATO SRI DR. ABDUL AZIZ BIN ABDUL RAHMAN Deputy Chairman of IIUM Holdings Sdn Bhd Tan Sri Dato Sri Dr. Abdul Aziz Abdul Rahman represents the Government of Malaysia as a Board of Governor of International Islamic University Malaysia (IIUM). He graduated with a Bachelor of Commerce from University of New South Wales, Sydney, Australia. He is a member of the Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Accountants (MIA). He obtained his MPhil (Master of Philosophy) and Ph.D from National University Malaysia (Universiti Kebangsaan Malaysia, UKM). He has served as Chairman and Board member of several government institutions, agencies and public Prof. Dato Sri Dr. Zaleha Kamarudin obtained her LL.B (Hons) from University Malaya in 1985, Master s Degree in Comparative Laws and Advanced Diploma in Sharia Law and Practice from the International Islamic University Malaysia, and her Ph.D in Comparative Laws at UCL, London University in She was admitted as Advocate and Solicitor of the High Court of Malaya in She has served the International Islamic University Malaysia for more than 32 years in various capacities. Before her appointment as the Rector of IIUM she was the Dean of the Ahmad Ibrahim Kulliyyah of Law, Dean of the Centre for Postgraduate Studies, and then Deputy Director-General of the Malaysian Institute of Islamic Understanding (IKIM). Prof. Dato Sri Dr. Zaleha was a long time member of the Selangor Council of Religious Affairs (MAIS) and a member of the Fatwa Committee for the State of Pahang. At the Federal level, she is a member of the Technical Committee on Shariah and Civil Laws, Department of Islamic Religious Affairs, Prime Minister s Department and serves as an appointed member in the National Religious Council. As an expert in Family Law, she was appointed by the Minister of Women, Family and Community Development to be a council member of the National Women Advisory Council and also the Technical Committee for the NAM Institute for the Empowerment of Women. In 2010, she was appointed to chair the Panel on Current Issues on Women and Islam, Department of Islamic Development. listed companies, both in Australia and Malaysia. At the corporate level he was with Price Waterhouse & Co. Sydney, Malaysia Airlines and Managing Director of Bank Rakyat Bhd before venturing into politics and public service as the Pahang, State Executive Councilor and Deputy Chief Minister. He was a Senator of Malaysian Parliament for a maximum period of two (2) terms. For some time, he was a presenter for Fast Forward programmer on Radio Television Malaysia (RTM1). Presently, he is a member of the Royal Pahang Council, Chairman of Chuan Huat Resources Berhad, Riding for the Disabled Malaysia (RDA) and President of the Malaysian Council of Former Parliamentarians. YBHG. PROF. DATO SRI DR. ZALEHA BINTI KAMARUDIN Director of IIUM Holdings Sdn Bhd Academically, she serves as external examiner for doctoral theses and promotion for almost all established law schools in Malaysia. She is also a panel member for the Malaysian Qualifications Agency (Law Programmes). She was the Chief Editor of Tafhim: IKIM s Journal of Islam and the Contemporary World and is also a member of the Editorial Boards of the International Journal of Muslim Unity (IIUM), Journal of Governance and Law (UUM), Advisor of the Editorial Board of the IIUM Law Journal, member of the Editorial Board of the International Journal of Economic, Social and Global Studies, International University of Sarajevo, Bosnia, and Member of the International Advisers for the Journal of Sultan Sharif Ali Islamic University, Brunei and Journal of Sharia and Law, Islamabad (IIUI). Prof. Dato Sri Dr. Zaleha is recognized internationally as a leading authority on comparative family laws and a well respected figure amongst the Malaysian legal fraternity. She has received various accolades which includes the First Lady Lifetime Achievement Award from Yayasan Wanita Malaysia, Saidatina Khadijah Award Anugerah Khas Tokoh Maulidur Rasul Peringkat Negeri Selangor 1434H/2013M, the Jewel of Muslim World Award 2013 and Ma al Hijrah Award, State of Pahang, 1435 (2014). In 2012, she gave a keynote speech at a High-Level Thematic Debate at the UN headquarters in New York and delivered the 13th Al-Sanhuri Annual Lecture at Harvard Law School, speaking on the transformation of the Islamic legal system in the 21st century.

22 22 IIUM Holdings Sdn Bhd Director s Profile YBHG. DATO AHMAD ZAILAN BIN SHAARI Director of IIUM Holdings Sdn Bhd Dato Ahmad Zailan Shaari is currently the Executive Director of Finance (CFO) of the International Islamic University Malaysia (IIUM) and has been serving IIUM for the last 28 years. He obtained his Bachelor degree in Accountancy from the University Technology MARA in His career in the financial sector started in the early 80 s at the Bank Bumiputra Malaysia Berhad and Sapura Holding Berhad. the formulation of the IIUM Strategic Plan-Financial Sustainability ( ) and the Champion of IIUM Financial Sustainability. He also led the GST Committee for the implementation of GST at the Public Universities, Malaysia. Dato Haji Ahmad Zailan was appointed as Committee Member by the Ministry of Higher Education as follows: Dato Haji Ahmad Zailan started his career in IIUM in 1988 as an Assistant Bursar. He was appointed as the Executive Director of Finance in He is qualified Chartered Accountant and a member of the Malaysian Institute of Accountant as well as Certified Financial Planner Malaysia. Dato Haji Ahmad Zailan served as the IIUM Company Secretary from 1998 until He was the Deputy Chairman of the IIUM Balanced Scorecard (BSC) core team, which led IIUM to be inducted in the coveted award of Hall of Fame in 2008, the second university in the world to be inducted in this prestigious list. He was invited to share his experience in implementing BSC at SAS Global Conference 2009 in Washington, USA, in Performance Management Symposium held at Multimedia University, Malaysia in April 2010 and at BSC APAC Summit 2010 in Manila, Philippines. 1. Working Committee for Preparation of Proposal Paper for the Improvement of Tax Implication to Donors in Public Universities in Committee for Improvement of Guide to Assessing Good Governance in Malaysian Universities in Monitoring Committee for Standard Accounting System for Government Agencies (SAGA) at Ministry of Higher Education level in Dato Haji Ahmad Zailan was appointed as Chairman of Council of Public University Bursars ( ). He was appointed as Working Committee in the Public Finance Reform for the New Economic Model (NEM), Performance Management and Delivery Unit (PEMANDU) under Prime Minister s Department in He was invited by the Liquid Learning (Asia) to be one of the panels for the Interactive Panel Discussion Rethinking Finance: Finance as a University Business Partner in The International Higher Education Strategic Finance and Management Accounting Forum 2013 held in Singapore. Dato Haji Ahmad Zailan spearheaded

23 Annual Report YBHG. PROF. DATO SRI DR. ASHGAR ALI BIN ALI MOHAMED Director of IIUM Holdings Sdn Bhd Prof. Dato Sri Dr. Ashgar Ali Ali Mohamed graduated with Bachelor of Law (LL.B (Hons)) and Master of Comparative Laws (MCL) from the International Islamic University Malaysia (IIUM), Master of Laws (LL.M (Hons)) from the University of Auckland, New Zealand and Doctor of Philosophy in Business Law (Ph.D) from the Graduate School of Management, University Putra Malaysia. He was admitted to the Malaysian Bar as an Advocate and Solicitor by the High Court of Malaya in He is currently a Professor and Dean of the Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia with more than 20 years of teaching experience. Prof. Dato Sri Dr. Ashgar Ali graduated with Bachelor of Law (LL.B (Hons)) and Master of Comparative Laws (MCL) from the International Islamic University Malaysia (IIUM), Master of Laws (LL.M (Hons)) from the University of Auckland, New Zealand and Doctor of Philosophy in Business Law (Ph.D) from the Graduate School of Management, University Putra Malaysia. He was admitted to the Malaysian Bar as an Advocate and Solicitor by the High Court of Malaya in He is currently a Professor and Dean of the Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia with more than 20 years of teaching experience. He is also a member of the Editorial Advisory Board and Board of Reviewers of the Journal of Administrative Sciences (JAS) ISSN: Further, he is a member of the Editorial Advisory Board of Malaysian Shariah Law Reports (LexisNexis) and Journal of Law and Criminal Justice, a refereed international journal, ISSN (Print) (Online) He was also the Executive and Steering Committee member of the Asia Pacific Mediaton Forum (APMF). Prof. Dato Sri Dr. Ashgar Ali was a Visiting Fellow of the Asian law Institute (ASLI) - Faculty of Law, National University of Singapore in Currently, he is a fellow of the Institute of Labour Market Information and Analysis (ILMIA), Ministry of Human Resources. Further, he was appointed as Advisor to the Ministry of Human Resources and Manpower on National Tripartite Conference on Decent Work in Apart from above, he is an expert respondent for the subject of Labour Law in the World Justice Project s Rule of Law Index since He was conferred the Best Researcher award at Kulliyyah Level in Besides the above, he is frequently sought after contributor for annotation of the Malaysian Statutes (ASM) by LexisNexis Malaysia Sdn Bhd. As at April 2015, he had annotated some 40 statutes for the above publisher. Apart from the above, he has written numerous articles published in both local and international journals/reports and has also presented papers at numerous local and international conferences in the area of employment law, alternative dispute resolution and civil litigation, among others. His area of interest includes Employment Law, Civil Litigation, Alternative Dispute Resolution, and Shariah Law and Practice in Malaysia.

24 24 IIUM Holdings Sdn Bhd Director s Profile YBHG. DATUK IR. KHALILUR RAHMAN BIN EBRAHIM Independent Non-Executive Director of IIUM Holdings Sdn Bhd Datuk Ir. Khalilur Rahman Ebrahim graduated with Bachelor of Science (Hons) in Electrical and Electronic Engineering from Brighton Polytechnic U.K. in He obtained his Master of Science in Electronics from University Technology Malaysia in He started his career in 1973 as a maintenance engineer in the communication department of Malaysian National Electricity Board. He joined Sapura Holdings in 1984 as Head of RnD, where he was responsible for the development of many innovative products like the PABX, mobile phones, pagers and feature phones, which won national awards. Datuk Khalilur started System Consultancy Services in 1994, and now runs a group of 5 companies with 223 personnel dealing with Defense Technologies, Industrial Automation, Building Security Systems and Composites. DK Composites pioneered in composites domes, which became well recognised landmarks in Malaysia, Singapore, UAE and Las Vegas, manufactures sailing yachts for the international market. In 2005, DK won the prestigious Christofle Asian Boating Award for Best Asian Boat Builder. For his contribution to the industry he was awarded the Entrepreneur Award by the Malaysian Malay Chamber of Commerce in 2005 Anugerah Usahasama Tulen and Darjah Mulia Seri Melaka which carries the title Datuk in He is currently : Executive Chairman, System Consultancy Group of Companies Member of the Board of Governors, The Malay College Kuala Kangsar Member of the Board of Trustee of The Malay College Foundation Board Member, Malaysia Industry Government Group for High Technology (MIGHT) Board Member of the IIUM Holdings Sdn Bhd and IIUM Advanced Technology Sdn Bhd YBHG. DATO ROSINI BINTI ABD. SAMAD Independent Non-Executive Director of IIUM Holdings Sdn Bhd Dato Rosini Abd. Samad, a Malaysian aged 63, has been an Independent Non-Executive Director of MSM Malaysia Holdings Berhad since 7 January She is also the Chairman of the Audit Committee and a member of Board Governance and Risk Management Committee. She holds a Bachelor of Economics (Accounting) (Hons) from University of Malaya and Masters of Business Administration from University of Cardiff, UK. Respectively, she is also the Honorary Fellow CPA Australia, a professional member of the Malaysian Institute of Accountants (MIA) and an Audit Committee Member of The Institute of Internal Auditors Malaysia. She has drawn decades of experience from immersion in the civil service sector. Formerly the Deputy Accountant General (Corporate) in the Accountant General s Department, Malaysia she then held The Accountant General s Nominee on the Council of MIA. She was a member of the Board of Directors of Percetakan Nasional Malaysia Berhad for seven years ( ) and served as Chairman of Audit Committee, member of Nominating and Remuneration Committee, Tender Committee and Disciplinary Committee. Beginning 1 July 2015, Dato Rosini was appointed as Independent Non-Executive Director on the Board of IIUM Holdings Sdn Bhd. She is also Chairman of Audit Committee and a member of Nomination and Remuneration Committee and Remedial Grievances and Disciplinary Committee.

25 Annual Report YBHG. DATO JAMALUDIN BIN HASSAN Independent Non-Executive Director of IIUM Holdings Sdn Bhd Dato Jamaludin Hassan graduated from the University of Malaya with a Bachelor of Economics (Honours) degree and Post-graduate Diploma in Business Analysis, University of Lancaster, United Kingdom and attended a course on Policy for Public Enterprises in Developing Countries, Harvard Institute for International Development, Harvard University Boston, USA. He started his career in the Administrative and Diplomatic Service in 1974 and had served in various capacities in the public service including positions as Assistant Director, International Trade Division, Ministry of Trade and Industry, Assistant Trade Commissioner, Malaysian Trade Mission in Sydney Australia, Secretary Road Transport Licensing Board, Ministry of Public Enterprises, Principal Assistant Secretary, International Economic Section, The Treasury, Special Officer to Secretary General, Ministry of Finance and Special Assistant to The Chairman, Malaysia Airlines System (MAS). Subsequently, he opted out to retire early from the Government Service and joined Malaysian Industrial Development Finance Berhad (MIDF) as General Manager, Corporate Affairs in 1994 and moving up to become the Chief Operating Officer of the Development Finance Division before retiring in 2007 and thereafter appointed as Advisor at the Group Managing Director s Office. Technology Development Corporation (MTDC). Whilst serving with the Treasury, he was also made Corporate Advisor of Sabah Gas Industry and Sabah Energy Corporation. Dato Jamaludin was the Independent Non-Executive Director and Chairman of TFP Solutions Bhd, a company listed on the ACE Market of Bursa Malaysia for ten years from December 28, 2007 until June He also chairs the Audit Committee of the Company and Member of its Nomination Committee. Beginning 28 June 2013, Dato Jamaludin was appointed as an Independent Director on the Board of IIUM Holdings Sdn Bhd and subsequently made a Member of its Audit Committee and Chairman of its Remedial, Grievances and Disciplinary Committee. Dato Jamaludin also sits on the Board of IIUM Higher Education Sdn Bhd and Chairman of IIUM Centre for Continuing Education Sdn Bhd, both of which are subsidiaries of IIUM Holdings. During his tenure with the Government of Malaysia and MIDF, Dato Jamaludin had served on the Boards of Pahang State Economic Development Corporation, Kedah State Development Corporation, Amanah International Finance Sdn Bhd, Amanah Factors Sdn Bhd and Malaysian

26

27 CORPORATE REPORT

28 28 IIUM Holdings Sdn Bhd Education Sector IIUM CENTRE FOR CONTINUING EDUCATION SDN BHD icce NURTURING COMMUNITY VIA UNIVERSITY Established in 1999, IIUM Centre for Continuing Education Sdn Bhd (icce) moved forward in complementing the establishment of International Islamic University Malaysia (IIUM). The core business is managing all IIUM Open and Distance Learning Programmes. We reach the community rather than having them conventionally come to study in campus. We are committed in ensuring the delivery of the programmes are at the best standard in line with our motto nurturing community via university. icce dedicated to the ideals of lifelong education, manages numerous programmes to working adults who wish to acquire additional knowledge and skills related to their vocation for career advancement. Currently icce offers the following academic programme: 1. Bachelor of Business Management (BBM). 2. Bachelor of Education (specialization in Islamic Education, Guidance & Counselling and teaching English as Second Language). 3. Master of Education. We facilitated hundreds of adult learners to obtain their first degree and eventually able to upgrade themselves in their careers.

29 Annual Report Education Sector IIUM CENTRE FOR CONTINUING EDUCATION SDN BHD icce evolves at all time and currently offering short and medium term trainings that aims at providing quality education and training accessible to a wider scope of audience. icce offers those trainings via online using our latest Learning Management System (LMS) as well as via face to face method. We are committed to capitalise all the experts and programmes available at faculty levels by rebranding them and expose them in the open market. icce provides training, short course, in-house training, workshop, certificate, study tour, English and Arabic Programme and international training. This programme is designed for employee at your organisation who wants to develop his/her abilities to enhance participant while engaged in productive work in a job that and provides knowledge or skills essential to the full and adequate performance of the job. icce provide well-qualified lecturers and experienced practitioners conduct classes to ensure what is imparted is relevant and practical. icce is proud and committed in ensuring quality services in the delivery of the programme offered. Creative, fun and dynamic approaches were implemented in delivering and sustaining excellent services, of the course offered. Visit to RTM, Kuala Lumpur, technology at Sedim kulim Team Building for Primilux

30 30 IIUM Holdings Sdn Bhd Education Sector IIUM HIGHER EDUCATION SDN BHD International Islamic College (IIC), established in 2000 by IIUM Higher Education Sdn Bhd is a wholly-owned subsidiary to IIUM Holdings Sdn Bhd and International Islamic University Malaysia is the ultimate holding company. IIC serves as a gateway to knowledge and erudition. IIC offers the following academic programmes; Foundation in Arts Certificate in English Certificate in Business Administration Certificate in Early Childhood Education Diploma in Accounting Diploma in Risk Management Diploma in Marketing Management Diploma in Business Administration Diploma in Enforcement Management Diploma in Islamic Banking and Finance Diploma in Office Management & Secretaryship Diploma in Graphic Design Diploma in Computer Science Diploma in Creative Animation Diploma in Information Technology Diploma in Halal Industry Management Diploma in Contemporary Islamic Sciences Diploma in Islamic Early Childhood Education Bachelor of Business (Entrepreneurship), 3+0 accredited programme in collaboration with Federation University, Australia Bachelor of Commerce (Accounting), 3+0 accredited programme in collaboration with Federation University, Australia BA (Hons) Early Childhood Studies (International), 3+0 accredited programme in collaboration with Teesside University, United Kingdom IIC will be introducing three (3) new Diploma programmes in 2018; Diploma in International Trade, Diploma in Law and Diploma in Shariah. Currently, the college is home to 2,500 students studying for various academic programmes in its vibrant campus in the Batu Muda District of Kuala Lumpur. IIC is equipped with modern facilities and has qualified and dedicated workforce to ensure the delivery of quality education to its students. IIC embodies cultural diversity with its multi-cultural workforce and student population. The number of international intake is growing and in the spirit of openness in Islam, IIC has an increasing population of non-muslim students, local and international alike. In 2017, IIC was awarded MyQuest ratings with 5 stars in the International Students Readiness Cluster and 4 stars in the large category (enrolment number of more than 2000 students). Overall, IIC managed to increase the ratings across all clusters with 4 stars. IIC has implemented Quality Management System and migrated to ISO 9001:2015 Certification from SIRIM since All of IIC s academic programmes are accredited by Malaysia Qualification Agency (MQA) and has been receiving grade A from the National Higher Education Fund Corporation (PTPTN) since 2004.

31 Annual Report Education Sector IIUM HIGHER EDUCATION SDN BHD The encouragement of lifelong learning is one of the important aims of IIC. As part of the continuing efforts of IIC to offer more time and flexibility to students, IIC has introduced Modular Studies programme for students where all of IIC s courses can be undertaken as either a full-time course, or as a flexible part-time course and tailored individually. Our courses are delivered on this basis in recognition that many students wish to fit their studies around work and other commitments. For 2018, IIC will run its Open Distance Learning programme, considered nowadays as the most viable means for broadening educational access to achieve an extended classroom or learning experience while improving the quality of education. Diploma in Business Administration and Diploma in Islamic Early Childhood Education will be offered as an introduction.

32 32 IIUM Holdings Sdn Bhd Education Sector Sector IIUM SCHOOLS SDN BHD IIUM Schools Sdn Bhd (ischools) was formed as a private education provider company in The company is providing an integrated and holistic education which adheres to the Islamic tenets and values at the primary, secondary and A-levels, so as to allow all children to experience learning success and become life-long learners and contributing members in the community. Our schools International Islamic School Malaysia and Sekolah Setiabudi have the best attributes of private institutions, i.e., small class sizes, stressing in high academic performance, trained and experienced teachers, providing high-quality programmes and having state-of-the-art school facilities. Vision To be a major provider of quality Islamic education national and internationally by Mission To develop and manage quality Islamic education institutions to national and international community through excellent strategic business approach align with universal and Islamic values. Motto Work Smart, Be Proactive

33 Annual Report Education Sector IIUM SCHOOLS SDN BHD Company Ownership The IIUM Schools Sdn Bhd (ischools) X is a subsidiary of IIUM Holdings Sdn Bhd incorporated on 21st November CORPORATE INFORMATION Name of Company IIUM Schools Sdn Bhd ( X) Date of Incorporation 21st of November 1997 Authorised Capital RM 1.0 Million Paid-up Capital RM 1.0 Million Shareholder of the Company Wholly owned by IIUM Holdings Sdn Bhd Nature of Business Education»» Primary, secondary and post-secondary education for Malaysian and International students»» Malaysian National School Curriculum: Setiabudi Schools»» Cambridge International Examination Curriculum: International Islamic School Malaysia (IISM) Business Address IIUM Schools Sdn Bhd ( X) Central Complex, Batu 8, Jalan Sungai Pusu, Gombak, Kuala Lumpur Tel : Fax : Board of Directors cum Board of Governors 1. YBhg. Prof. Dr. Ismail bin Sheikh Ahmad 2. YBhg. Prof. Dr. Nazli Anum binti Mohd Ghazali 3. YBhg. Assoc. Prof. Dr. Ismaeil Hassanein Ahmed Mohamed 4. YBhg. Asst. Prof. Dr. Mohd Lukman bin Inche Ibrahim 5. YBhg. Assoc. Prof. Dr. Azam bin Othman 6. YBhg. Encik Zaidi bin Abd. Ghani Company Secretary Inong Putri binti Abdullah (LS ) Auditor Messrs. Aftaas Afrizan Tarmili Khairul Azhar (AF:1300) Banker Bank Islam Malaysia Berhad

34 34 IIUM Holdings Sdn Bhd Education Sector Sector IIUM SCHOOLS SDN BHD FINANCIAL RESULT SUMMARY YEAR ENDED (RM 000) Financial Results Revenue 22,553 24,685 29,159 34,740 32,207 Cost & Expenses (18,925) (19,263) (24,751) (28,113) (25,752) Profit Before Tax 3,628 5,422 4,408 6,627 6,455 Profit After Tax 3,442 3,605 2,992 5,132 1,133 PRODUCT AND SERVICES ischools believe in our uniqueness to provide comprehensive and holistic education which produce distinctive graduates through; SCHOOLS DESCRIPTION ADDITIONAL PROGRAM IISM Primary Grade 1-6»» Hikmah Programme (Gombak & Kuantan) Cambridge Curriculum & Own Islamic Module»» Umrah Exams:»» Ibadah Camps»» CPC- Cambridge Primary Checkpoint»» Halaqah»» ICT Starters»» Congregational Prayer»» Tahfeez IISM Secondary (Gombak & Kuantan) Sekolah Rendah Setiabudi Sekolah Menengah Setiabudi Intensive English (Beginner & Intermediate) Lower Secondary (Grade 7, 8 & 9) Upper Secondary (Grade 10 & 11) IGCSE / O-Levels A-Levels (Junior & Senior) Exams:»» IGCSE (Grade 11)»» A-Levels (Senior)»» Dual Certification Program Kurikulum Standard Sekolah Rendah (KSSR) for Year 1 & 2 Kurikulum Bersepadu Sekolah Rendah (KBSR for Year 3, 4, 5 & 6 JAIS Syllabus (Year 1 6) Exams:»» Ujian Penilaian Sekolah Rendah (UPSR) Year 6»» Penilaian Sekolah Rendah Agama (PSRA) Year 6 Kurikulum Standard Sekolah Menengah (KSSM) Form 1 Kurikulum Bersepadu Sekolah Menengah (KBSM) Form 2, 3, 4 & 5 Exams:»» Penilaian Tahap 3 (PT3)»» Form 3»» Sijil Pelajaran Malaysia (SPM) Form 5»» Hikmah Programme»» Umrah»» Ibadah Camps»» Halaqah»» Congregational Prayer»» Tahfeez (al-furqan Program)

35 Annual Report Education Sector IIUM SCHOOLS SDN BHD STUDENTS PROFILE a) Student Enrolment School IISM Primary IISM Secondary IISM Kuantan IISM ( A-Levels) Setiabudi Rendah Setiabudi Menengah Total 1,789 1,888 2,134 2,239 2,108 b) Student population in IISM (Malaysian and International) Status IISM A-Levels IISM Secondary IISM Primary IISM Kuantan Foreign Malaysian Total Total IISM STUDENTS ACHIEVEMENT Amana Hanan Won the outstanding Cambridge Leaner Award : Top in the World Cambridge A-Level Islamic Studies in year PSRA Result Sekolah Cemerlang Peringkat Negeri Selangor 2017 Awarded by JAIS Dalina Safiyah bt Azdi Pelajar Terbaik PSRA Daerah Gombak 2017 Awarded by JAIS Five (5) Stars Award of Standard Kualiti Institusi Pendidikan Swasta (SKIPS) for SETIABUDI & IISM awarded by MoE in year Establishment of Al-Furqan class (Tahfeez) in Sekolah Menengah Setiabudi. Nurfatihah Irwan bt Rudy Irwan Juara Keseluruhan Golf Peringkat Kebangsaan MSSM 2017 (Pasukan Selangor). Muhammad Arif b. Zulfikry Juara Keseluruhan Kejohanan Akuatik Peringkat Kebangsaan MSSM 2017 (Pasukan Selangor). Singapore Asian Junior Robotic cup Hostel by Al-Islam School, Two Bronze Medals, One Special Award and One Grand Price. CORPORATE SOCIAL RESPONSIBILITY (CSR) PROGRAM ORGANIZED BY ISSB SCHOOLS IN COLLABORATION WITH PUSAT ZAKAT SELANGOR Bantuan Makanan Golongan Gelandangan organized by IISM at Jalan Tuanku Abdul Rahman (Held 4 times) in year Sponsored 10 SPM Asnaf Students and 10 PT3 Asnaf Students for Tuition Classes in collaboration with Pejabat Pendidikan Daerah (PPD) Gombak starting February 2017 until October Sponsored Ten (10) Asnaf students from Thailand for English Summer Camp from 20th 30th April Kem Tautan Kasih Ibadah and motivational camp for Fifty (50) Asnaf students at Lembah Azween Resort, Hulu Langat, Selangor on 23rd 25th February 2018, organized by IISM A-Levels in collaboration with Pejabat Pendidikan Daerah (PPD) Gombak.

36 36 IIUM Holdings Sdn Bhd Education Sector Sector IIUM EDUCARE SDN BHD IIUM Educare Sdn Bhd (ieducare) endeavors to ensure that the service offered to the children and their families is of the highest standard at all times. This is reflected in the flexible programs designed to meet the individual and diverse needs of each child including intellectual, moral, social, emotional and spiritual. ieducare aims to become the leading and regionally recognized center for Preschool, Childcare as well as Daycare. Since its initiation more than 20 years ago, ieducare continuously provides children with the best quality of care with comprehensive facilities and equipment to cater for children developmental needs in warm and homely environment. To date, ieducare has 20 Preschool and Childcare centers with more than 1500 children. In addition to that, ieducare has been entrusted by corporate agencies such as Tenaga National Berhad (TNB), Telekom Malaysia Berhad (TM) and Malaysian Investment Development Authority (MIDA) to operate their Preschool and Childcare Centres. OUR OBJECTIVE To coach and nurture a child with love and care. To inspire and to encourage children s spiritual, social, physical, cognitive and linguistic development. To provide a child s learning process by providing exposure, opportunity and motivation in an organized environment. To provide and supervise programs designed to meet the needs of every child. THE ADVANTAGES OF ieducare Utilizes a sophisticated and successful learning system. Our students experience numerous fun and learning activities such as water play, sand play, outdoor activities and field trips. Offers quality care with respectable reputations. Is strategically located. Staff are devoted, skilled, steadfast and genuine. SERVICE AGE GROUP OPERATING HOURS Childcare 2 months 3 year old Preschool 4 year old 6 year old Daycare 4 year old 6 year old 7.40 am 6.00 pm 7.40 am 1.00 pm 1.00 pm 6.00 pm

37 Annual Report Consultancies & Services Sector IIUM ENTREPRENEURSHIP AND CONSULTANCIES SDN BHD IIUM Entrepreneurship and Consultancies Sdn Bhd (iec) was incorporated on 7th November 2001 to pilot the consultancy and business activities of the International Islamic University Malaysia. iec offers the finest consultation services and activities in leading areas of Economics, Management, Built Environment, Environmental Sciences, Law and Regulatory, Engineering, Medicine and Sciences, Islamic Reveal Knowledge and Human Sciences, Language and Literature and Information Communication Technology. iec is all set to provide the best and the most comprehensive services and activities for the local and international market. Equipped with expertise, knowledge and workforce, it is forging ahead to be the leading force. VISION To be a Pinnacle of Excellence in Consultancy and Entrepreneurship services. MISSION P: Provide comprehensive consultancy services R: Realization of Islamic and universal values and ethics E: Exhibit the excellence of IIUM experts A: Achieve Professional Business Conduct C: Commitment to competency, efficiency, quality & excellence H: Hosting consultancy databases & services Our Clients

38 38 IIUM Holdings Sdn Bhd Consultancies & Services Sector IIUM ADVANCED TECHNOLOGIES SDN BHD Portable Device Detector IIUM Advanced Technologies Sdn Bhd (iat) simultaneously plays the role of being the University s systems integrator, as well as exploring opportunities to channel the resources and technology know-how of the university to various sectors of the marketplace. Their main focus is in the field of Information Communications Technology (ICT) and commercialization of scientific research. Academy Programme iat offers training and consultancy modules through content co-development by experts from Kulliyyah of ICT IIUM, Chief Security Government Office of Prime Minister s Department and Cybersecurity Malaysia. These modules are based on frameworks that connect between information and physical security. This includes cybersecurity training, data protection awareness programme, ISMS/ISO27001 consultancy and implementation and infrastructure security intervention. The training modules that have been carried out successfully were Certified Cyber Defender Associate, Industrial Security Professional Certification, Cryptocurrency, Blockchain and Distributed Ledger Technology (DLT). IT Services Procurement, fulfilment and IT outsourcing services, network maintenance and audit, software development, data warehousing & recovery, CCTV & security surveillance systems these are the services provided by iat. Currently, there are few ongoing projects such as building a College Management System, platform for Internship Application and a sadaqah crowdfunding application. Research Enterprise Besides IT services, iat has been given the responsibility to commercialize a bio-engineered Bromelain, produced through a patent-pending recombinant process with the advantage of having anti-cancer properties. Bromelain has been utilized to make cream cheese, namely Bromcheese and is currently being sold openly to consumers. In addition to that, the Research Enterprise team is also working on creating a first-ever device given the name Portable Device Detector (P.O.D.D.) with the function of detecting any elements of doubt in food and beverages, specifically lard and alcohol. Certified Cyber Defender Associate (CCDA) Lab Certified Cyber Defender Associate (CCDA) Lab

39 Annual Report Consultancies & Services Sector IIUM CORPORATE MANAGEMENT SDN BHD Breakfast with Company Secetary Workshop: The Power of EQ in Workplace Audit Committee Meeting Preferred Partner Corporate Services Attentive. Responsive. Efficient. That s Us llum Corporate Management Sdn Bhd (icmsb) is a wholly-owned subsidiary to llum Holdings Group where International Islamic University Malaysia (llum) is the ultimate holding company for the Group. We provide advisory and company secretarial services to the entire IIUM group as well as to both local and foreign-owned companies in Malaysia. Our client base is involved in a wide spectrum of business activities in Malaysia. Our dedicated company secretary is a qualified company secretary who has more than 20 years of experience in the field and holds a master s degree in International Business from University of East London. She is also a registered Company Secetary with the Companies Commission of Malaysia (CCM). CCM is the agency that incorporates companies and register businesses as well as the leading authority for the improvement of corporate governance. Company Secretary Team Workshop: The Power of EQ in Workplace RANGE OF SERVICES Our Company provides full range of services to clients who need assistance to comply with the requirements of the Malaysian Companies Act 2016, which include but not limited to: Incorporation of company or company limited by guarantee Attending and recording minutes of board and share holders meetings Advising/updating clients on compliance with the Companies Act, 2016 Consultation on corporate procedures and legislation Provision of a registered office address Corporate advisory Tax Exemption registration for companies incorporated under Section 45 of the Companies Act 2016 Ministry of Finance registration Business License Authorities (DBKL, MPAJ, etc.)

40 40 IIUM Holdings Sdn Bhd Consultancies & Services Sector IIUM SHARIAH ADVISORY SERVICES SDN BHD Training on Halal Ecosystem in Malaysia to research Enterprise (iat) Appoint as Programme Delivery Partner by Halal International Selangor. IIUM Shariah Advisory Services Sdn Bhd (isas) is a wholly owned subsidiary of IIUM Holdings Sdn Bhd. isas is providing Consultancy & Advisory services and training mainly in the areas of Islamic Banking and Finance. The Company sources its experts from the International Islamic University Malaysia (IIUM), particularly from the Institute of Islamic Banking and Finance, Ahmad Ibrahim Kulliyyah of Laws, Kulliyyah of Economics and Management Sciences and also Kulliyyah of Islamic Revealed Knowledge and Human Sciences. Besides these the Company also sources for experts from the industry mainly among the bankers and lawyers. Advisory/ Consultancy Services Note: OUR SERVICES Coaching/ TOT/ Clinics/ In House training etc Capacity Building Programmes (certified by IIiBF, INHART & KLM) Many of these experts are Shariah Advisors to Islamic Financial Institutions. Some of them are highly recognized and sits in the Shariah Advisory Council of the Central Bank of Malaysia and the Securities Commission Malaysia. The Company is now exploring to expand its services into the fast growing area namely the Halal Industry. The company again is able to source for the experts from the International Halal Research and Training Institute of IIUM. IIiBF - IIUM Institute of Islamic Banking and Finance INHART - International Institute of Halal Research and Training KLM - Kulliyyah of Language Management (Islamic Tourism) The Company wishes to provide its services to Government, Non-Government, Corporate Companies, Associations, Universities, High Net worth individuals and anyone who is interested. Training for Tadhamon International Islamic Bank ( Yemen)

41 Annual Report Healthcare & Others Sector IIUM MEDICAL SPECIALIST CENTRE SDN BHD IIUM Medical Specialist Centre Sdn Bhd (imsc) has gone through two tremendous years. The year 2017 has been a year of innovation, recognition and growth for imsc. We have now commenced our 24 hours operation of Accident and Emergency services (A&E) and provide sufficient support and quality of care to A&E patients. imsc has successfully being enlisted as panel hospital for established insurance companies and Third Party Administrators (TPA). We are now having the most panel hospital for insurance companies and TPA as compared to other University s Specialist Centre. Our outpatient and inpatient services continue to record strong growth across all specialized disciplines. to all our patient with warmth and passion. With an eye to further engage with the community, we have organized IIUM Medical Specialist Centre Run 2018 with overwhelming response from the surrounding community as well as international runners with the number of participants exceeding 1000 participants. imsc will endeavour to deliver specialized medical care to its surrounding community and beyond in years to come. With our more than 100 subspecialized consultants, we strive to be one of the leading Private Medical Specialist Centre in the East Coast Region. In our commitment to continuously improve our patients experience, we continuously provide the best care IIUM Medical Specialist Centre Run 2018

42 42 IIUM Holdings Sdn Bhd Healthcare & Others Sector IKOP SDN BHD IKOP Sdn Bhd (IKOP) is a GMP-certified healthcare manufacturer committed to providing halal-certified products. Situated in the capital city of Pahang Darul Makmur, IKOP is the first pharmaceutical industry in Malaysia located within the university campus, i.e of International Islamic University Malaysia (IIUM). The uniqueness of IKOP lay in its hybrid concept that foster the lecturers of Kulliyyah of Pharmacy, IIUM to practice as industrial practitioner within the scope of pharmaceutical GMP. IKOP has seen various improvement made within the organisation in achieving its mission to become one stop centre for training and manufacturing of halalan toyyiban pharmaceuticals. Let us pray that IKOP will continue to prosper in its endeavour to provide a quality human capital development and halalan toyyiban healthcare products. The Company s visibility continue to enhance not only amongst local industrial players but also amongst national and international academic institutions for the pass At least 1 foreign university and 7 local universities entrusted IKOP to train their pharmacy students throughout the year of IKOP had also marked another achievement when IKOP been awarded an Enterprise Innovation Fund amounting half a million from MOSTI in The fund is to support the R&D and clinical trial for a pharmaceutical product indicated for diabetes and expected to complete within 2 years time. Towards the end of 2017, IKOP has successfully secure a contract from Pharmaniaga to supply its first over-the-counter (OTC) product, igesic ointment for 2 years, on renewable basis.

43 Annual Report Healthcare & Others Sector IIUM PROPERTIES SDN BHD Proposed IIUC at South Zone Established in 2001, IIUM Properties Sdn Bhd (iproperties) since then has built its reputation in property business, particularly in construction, project management and facilities and maintenance services. Proposed R&R Gombak 1 Proposed R&R Gombak Proposed Convention Centre & Hotel at South Zone The Board of Directors of iproperties consist of highly experience professionals including Town Planner, Engineer and Lawyer involved in the construction and property development industry. This is parallel to the vision of iproperties to be the University s lead company in property development and construction. With strong foundation built from property management and property construction, iproperties has widened its business to include property development. This is in line with the mission of iproperties to attain as profitable, sustainable and viable entity that diversifies the University s source of income. Moving forward, iproperties is entrust into developing some of the IIUM land bank in Selangor, Pahang and other locations. This is to ensure it s continuous growth, profitability and sustainability business will meet the stakeholder s expectation in terms of revenue and profit. The strategic intent and direction is to monetize the potential of IIUM land bank as a master developer for recurring revenue to IIUM. iproperties is to leverage on key resources; land bank located close to existing campus and to continue developing the brand and IIUM positioning. iproperties is also planning for catalytic development via smart partnership, strategic collaboration with the industrial players in bringing economic drivers for the township growth and at the same time develop connectivity and accessibility in order to enhance the value proposition of the IIUM development in short and long term stratergy.

44 44 IIUM Holdings Sdn Bhd Healthcare & Others Sector DAYA BERSIH SDN BHD Daya Bersih Sdn Bhd (DBSB) is a leading provider for Integrated Facilities Management Services (FMS) focusing on higher learning institutions. Since our establishment in 2004, we have been entrusted to undertake the operation and maintenance functions for Integrated FMS over 12,000,000 sqft of build-up area and employing more than 2,000 workers in various fields and expertise. Our mission is to provide safe, functional, clean and welcoming campuses. We believe that it is our responsibility to foster quality physical environment in realizing the Client s mission and vision. We distinguished ourselves by offering quality and productivity in our services, Shariah driven work principles and willingness to innovate. Our axiom is To provide better Integrated FMS with the highest uphold work culture of the Islamic Code of Ethics. We offer to our clients a unique single point contact which includes the traditional technical and non-technical management tasks with using technology enables and innovations to achieve quality and productivity. Our team monitors the facilities and our work performance through a special designed Computerized Maintenance Management Services (CMMS) that is accessible from any location, 24 hours a day. The maintenance requirement, activities, schedules, histories and performance for all facilities are contained within the system as well as our service delivery model based on Service Level Agreement (SLA) and constantly measured by Key Performance Indicators (KPI). The scopes of services are customizable to fit better with the client s requirements. We offer a high-quality service and cost-effective workflow though seamless integration of work forces, processes and system. Our Integrated FMS includes: Civil, Structural & Architectural Heating, Ventilation and Air-Conditioning (HVAC) system Electrical Distribution / Backup Power / Generator s Fire Detection & Fighting System Cleaning Services Custodial & Landscape Services Water Reticulation System / Plumbing & Sewage Systems Building Automation System (BAS) Hostel Management Event Facilitation Clinical and Scheduled Waste Management

45 Annual Report Healthcare & Others Sector DAYA BERSIH SDN BHD We are also certified with Quality Management System (QMS) ISO 9001:2008 and MS 1900:2014 (QMS from Islamic Perspectives). We aim to distinguish ourselves by being the first in industry and the leading Integrated FMS Company armed with QMS and Shariah compliance practices. In conclusion, DBSB offers cost-efficient and high quality services which are tailor made to the customer s needs and demands. We approach the facilities management solutions through a seamless combination of efficient people, processes and system in compliance with the Islamic code of ethics. AMONGST OUR CLIENT ARE AS FOLLOW :

46 iproperties Office Warming & Doa Selamat - February 2017 Understanding & Handling FUll Set of Acoounts in GST Environment April 2017 Jom Sihat ICCE Mei 2017 iholding Bubur Lambuk - June 2017.

47 et nt Safety and Health Training, IEC & RMC, 27 October 2017 Visit to Pusat Jagaan Warga Emas, Kajian ASD JPA. November 2017 Luncheon Talk December 2017 imsc Open Day & Raya Celebration - July 2017

48

49 FINANCIAL STATEMENT Corporate Information Directors Report Statement by Directors Statutory Declaration Independent Auditors Report Statements of Profit or Lost Statements og Financial Position Statements of Changes in Equity Cash Flow Statements Notes to the Financial Statements

50 50 IIUM Holdings Sdn Bhd CORPORATE INFORMATION Board of Directors Tan Sri Dato Seri Utama Dr. Rais Yatim Tan Sri Dato Sri Dr. Abdul Aziz Bin Abdul Rahman Prof. Dato Sri Dr. Zaleha Binti Kamarudin Dato Ahmad Zailan Bin Shaari Prof. Dato Sri Dr. Ashgar Ali Bin Ali Mohamed Dato Rosini Binti Abd Samad Dato Jamaludin Bin Hassan Datuk Ir. Khalilur Rahman Bin Ebrahim Company Secretary Inong Putri binti Abdullah (LS ) Registered Office/ Principal Place of Business Level 3, Administration Building Central Complex International Islamic University Malaysia Jalan Gombak Kuala Lumpur Auditors Afrizan Tarmili Khairul Azhar (AF 1300) 2, Jalan Rampai Niaga 2 Rampai Business Park Kuala Lumpur Principal Bankers Bank Islam Malaysia Berhad

51 Annual Report DIRECTORS REPORT The directors hereby submit their report together with the audited financial statements of the Group and of the Company for the year ended 31 December PRINCIPAL ACTIVITIES The principal activities of the Company is investment holding company. The principal activities of the subsidiaries are described in Note 10 to the financial statements. There have been no significant changes in the nature of the activities during the financial year. RESULTS Group RM Company RM Net profit for the financial year 1,880,576 2,519,796 DIVIDENDS No dividends have been paid or declared since the end of the previous year. The directors do not recommend that a dividend to be paid in respect of the current financial year. RESERVES AND PROVISIONS There were no material transfers to or from reserves or provisions except as disclosed in the financial statements. SHARES AND DEBENTURES The Company did not issue any new shares or debentures during the financial year. DIRECTORS The directors who held office since the date of the last report are: Tan Sri Dato Seri Utama Dr. Rais Yatim Tan Sri Dato Sri Dr. Abdul Aziz Bin Abdul Rahman Prof. Dato Sri Dr. Zaleha Binti Kamarudin Dato Ahmad Zailan Bin Shaari Prof. Dato Sri Dr. Ashgar Ali Bin Ali Mohamed Dato Rosini Binti Abd Samad Dato Jamaludin Bin Hassan Datuk Ir. Khalilur Rahman Bin Ebrahim

52 52 IIUM Holdings Sdn Bhd DIRECTORS BENEFITS During and at the end of the financial year, no arrangements subsisted to which the Company is a party, with the object or objects of enabling directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate. Since the end of the previous year, no director has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directors shown in the financial statements or the fixed salary of a full-time employee of the Company) by reason of a contract made by the Company or a related corporation with the director or with a firm of which the director is a member, or with a company in which the director has a substantial financial interest. DIRECTORS INTERESTS None of the Directors in office at the end of the financial year have interest in shares of the Company during the financial year ended 31 December DIRECTORS REMUNERATIONS The amounts of the remunerations of the Directors or past Directors of the Company comprising remunerations received/ receivable from the Company during the financial year are as follows: Company 2017 RM Directors allowance 213,900 Meeting allowance 15,000 Honorarium of Directors 20, ,900 None of the Directors or past Directors of the Company have received any other benefits otherwise than in cash from the Company or any of its subsidiaries during the financial year. No payment has been paid to or receivable by any third party in respect of the services provided to the Company or any of its subsidiaries by the Directors or past Directors of the Company during the financial year. INDEMNIFYING DIRECTORS, OFFICERS OR AUDITORS No indemnities have been given to or insurance effected for, during or since the end of the financial year, any person who is or has been the Director, Officer or Auditor of the Company.

53 Annual Report OTHER STATUTORY INFORMATION Before the statements of profit or loss and the statements of financial position of the Group and of the Company were made out, the directors took reasonable steps: a) to ascertain that proper action had been taken in relation to the writing-off of impairment and the making of allowance for doubtful debts, and have satisfied themselves that all known impairment had been written-off and that adequate allowance had been made for doubtful debts; and b) to ensure that any current assets which were unlikely to be realised at their book values in the ordinary course of business have been written down to their estimated realisable values. As of the date of this report, the directors are not aware of any circumstances: a) which would render the amount written off for impairment or the amount of the allowance for doubtful debts inadequate to any substantial extent in the financial statements of the Group and of the Company; or b) which would render the values attributed to current assets in the financial statements of the Group and of the Company misleading; or c) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate; or d) not otherwise dealt with in this report or financial statements which would render any amount stated in the financial statements of the Group and of the Company misleading. As of the date of this report, there does not exist: a) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year and secures the liability of any other person; or b) any contingent liability of the Group and of the Company which has arisen since the end of the financial year. No contingent or other liability has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations as and when they fall due. In the opinion of the Directors: a) the results of the operations of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature. b) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of operations of the Company for the financial year in which this report is made.

54 54 IIUM Holdings Sdn Bhd HOLDING COMPANY The holding company is International Islamic University Malaysia, which is incorporated and domiciled in Malaysia. AUDITORS REMUNERATIONS Total amounts paid to or receivable by the auditors as remunerations for their services as auditors are as follows: Company 2017 RM Statutory audit 40,000

55 Annual Report AUDITORS The retiring auditors, Messrs. AFRIZAN TARMILI KHAIRUL AZHAR, have indicated their willingness to be re-appointed. Approved by the Board and signed on behalf of the Directors, TAN SRI DATO SERI UTAMA DR. RAIS YATIM Director TAN SRI DATO SRI DR. ABDUL AZIZ BIN ABDUL RAHMAN Director Kuala Lumpur, Malaysia Dated:

56 56 IIUM Holdings Sdn Bhd STATEMENT BY DIRECTORS PURSUANT TO SECTION 251 (2) OF THE COMPANIES ACT, 2016 The directors of IIUM HOLDINGS SDN BHD state that, in the opinion of the directors, the financial statements set out on pages 61 to 102 are drawn up in accordance with Malaysian Private Entities Reporting Standard and the requirements of Companies Act, 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2017 and financial performance of the Group and of the Company for the financial year ended 31 December Approved by the Board and signed on behalf of the Directors, TAN SRI DATO SERI UTAMA DR. RAIS YATIM Director TAN SRI DATO SRI DR. ABDUL AZIZ BIN ABDUL RAHMAN Director Kuala Lumpur, Malaysia Dated:

57 Annual Report STATUTORY DECLARATION PURSUANT TO SECTION 251 (1) (b) OF THE COMPANIES ACT, 2016 I, DATO HAJI NAHARUDIN BIN ALI, the officer primarily responsible for the financial management of IIUM HOLDINGS SDN BHD, do solemnly and sincerely declare that the financial statements set out on pages 61 to 102 are, in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, Subscribed and solemnly declared by } the above-named Dato Haji Naharudin } Bin Ali at Kuala Lumpur in the Federal } Territory this day of } Before me, } DATO HAJI NAHARUDIN BIN ALI MIA membership number: 5862

58 58 IIUM Holdings Sdn Bhd INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF IIUM HOLDINGS SDN BHD Report on the Audit of the Financial Statements Opinion We have audited the financial statements of IIUM HOLDINGS SDN BHD, which comprise the statements of financial position as at 31 December 2017 of the Group and of the Company, and the statements of profit or loss, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 61 to 102. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 December 2017, and of their financial performance and their cash flows for the financial year then ended in accordance with Malaysian Private Entities Reporting Standard and the requirements of the Companies Act, 2016 in Malaysia. Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants ( By-Laws ) and the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants ( IESBA Code ), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. Information Other than the Financial Statements and Auditors Report Thereon The directors of the Company are responsible for the other information. The other information comprises the Directors Report but does not include the financial statements of the Group and of the Company and our auditors report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the Directors Report and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the Directors Report and, in doing so, consider whether the Directors Report is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of the Directors Report, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Statements The directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Private Entities Reporting Standard and the requirements of the Companies Act, 2016 in Malaysia.

59 Annual Report INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF IIUM HOLDINGS SDN BHD (CONT D) Responsibilities of the Directors for the Financial Statements (cont d) The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the Group s and the Company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so. Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group s and the Company s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group s or the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

60 60 IIUM Holdings Sdn Bhd INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF IIUM HOLDINGS SDN BHD (CONT D) Auditors responsibilities for the audit of the financial statements (cont d) We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Report on Other Legal and Regulatory Requirements In accordance with the requirements of the Companies Act, 2016 in Malaysia, we also report the following: a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its Company and of the Group have been properly kept in accordance with the provisions of the Act. b) We are satisfied that the accounts of the Company and of the Group that have been consolidated with the Company s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes. c) Our audit reports on the accounts of the Company and of the Group did not contain any qualification or any adverse comment made under Section 266 of the Act. Other Matters This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act, 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report. Kuala Lumpur, Malaysia Dated: