A R A B - M A L AY S I A N C O R P O R AT I O N B E R H A D

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1 Contents Corporate Structure 1 Notice of Annual General Meeting 2 Corporate Information 4 Five Years Group Financial Summary 5 Chairman s Statement 6 12 Audit Committee Directors Report Balance Sheets 26 Profit and Loss Accounts 27 Consolidated Cash Flow Statement Notes to the Accounts Statement by the Directors 58 Statutory Declaration 58 Report of the Auditors to the Members Analysis of Shareholdings Analysis of 5% Irredeemable Convertible 63 Unsecured Loan Stocks 1995/2002 (ICULS B) Holders List of Properties Held As At 31st March Proxy Form 67 Kandungan 1 Struktur Korporat 3 Notis Mesyuarat Agung Tahunan 4 Maklumat Korporat 5 Ringkasan Kewangan Lima Tahun Kumpulan 7 13 Penyata Pengerusi Jawatankuasa Audit Laporan Pengarah 26 Kunci Kira-kira 27 Akaun Untung Rugi Penyata Aliran Wang Tunai Disatukan Nota-nota kepada Akaun 58 Penyata oleh Para Pengarah 58 Pengakuan Berkanun Laporan Juruaudit kepada Ahli-ahli Analisa Pemegangan Saham 63 Analisa Pemegang 5% Stok Pinjaman Tak Bercagar Boleh Tukar Tak Boleh Tebus 1995/2002 (ICULS B) Senarai Hartanah Yang Dipegang Pada 31hb Mac Borang Proksi 2 Lap o ra n Tah u n an An n u al Re p o r t

2 C O R P O R AT E S T RU C T U R E S T R U K T U R K O R P O R AT A M C O R P* AHB* 36.9% FINANCIAL SERVICES PERKHIDMATAN KEWANGAN PROPERTY HARTANAH AMDB* 27.7% FCSB 100% MCM 100% AMB 95% DCPI 100% MSB 100% AMPR 100% MCM.COM 100% MANUFACTURING PERKILANGAN MEDIA BROADCASTING PENYIARAN MEDIA SPIB* 55.7% RB* 41.4% AHB AMMB Holdings Berhad AMB Arab-Malaysian Corporation Builders Sdn Bhd AMCORP Arab-Malaysian Corporation Berhad AMDB AMPR Arab-Malaysian Prima Realty Sdn Bhd DCPI DCP Industries Sdn Bhd FCSB Fulcrum Capital Sdn Bhd MCM.COM MCM.COM Sdn Bhd MSB Melawangi Sdn Bhd RB Rediffusion Berhad AMDB Arab-Malaysian Development Berhad MCM Mezzanine Capital (M) Sdn Bhd SPIB South Peninsular Industries Berhad * Listed on the Kuala Lumpur Stock Exchange Disenaraikan di Bursa Saham Kuala Lumpur 1 Lapo ra n Tahunan An n u al Re p o r t

3 N OT I C E O F A N N U A L G E N E R A L M E E T I N G NOTICE IS HEREBY GIVEN that the Eighty-Sixth Annual General Meeting of Arab-Malaysian Corporation Berhad ( the Company ) will be held at Lot 271, Jalan Dua, Off Jalan Chan Sow Lin, Kuala Lumpur on Tuesday, 26th September, 2000 at a.m. to transact the following businesses:- Item Agenda Resolution on Proxy Form 1. To receive and adopt the Audited Accounts for the year ended 31st March, 2000 and the Reports of Directors and Auditors thereon. (Resolution No. 1) 2. To approve the payment of Directors fees of RM96,000 for the year ended 31st March, To re-elect the following Directors retiring in accordance with Article 104 of the Company s Articles of Association:- i) Y. Bhg. General (Rtd) Tan Sri Dato Mohd Hashim bin Mohd Ali ii) Y. Bhg. Dato Azlan Hashim 4. To re-appoint Messrs. Deloitte KassimChan (formerly known as Kassim Chan & Co.), the retiring Auditors and to authorise the Directors to determine their remuneration. 5. SPECIAL BUSINESS To consider and if thought fit, to pass the following resolution with or without modifications as an Ordinary Resolution of the Company:- (Resolution No. 2) (Resolution No. 3) (Resolution No. 4) (Resolution No. 5) ORDINARY RESOLUTION-AUTHORITY FOR ALLOTMENT OF SHARES THAT subject always to the Companies Act, 1965 and the approvals of the relevant governmental and/or regulatory authorities, the Directors be and are hereby empowered, pursuant to Section 132D of the Companies Act, 1965, to issue shares in the Company from time to time at such price, upon such terms and conditions, for such purposes and to such person or persons whomsoever as the Directors may deem fit provided that the aggregate number of shares issued in any one financial year of the Company pursuant to this resolution does not exceed 10% of the issued share capital of the Company for the time being AND THAT the Directors be also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on the Kuala Lumpur Stock Exchange AND THAT such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company. 6. To transact any other business of which due notice shall have been received. (Resolution No. 6) By Order of the Board OOI CHIN KHOON (MIA 6245) YEOH CHONG KEAT (MIA 2736) Company Secretaries Kuala Lumpur 11th September, 2000 NOTES 1. Any member of the Company entitled to attend and vote at this meeting is entitled to appoint a proxy (not more than two) to attend and to vote in his stead. Where a member appoints two proxies, the appointment shall be invalid unless he specifies the proportion of his holdings to be represented by each proxy. 2. A proxy may but need not be a member of the Company. 3. Where the proxy form is executed by a corporation, it must be either under its Seal or under the hand of an attorney duly authorised. 4. The instrument appointing a proxy must be deposited at the Registered Office of the Company at Suite 11.1A, Level 11, Menara Weld, 76 Jalan Raja Chulan, Kuala Lumpur not less than 48 hours before the time set for the meeting or adjourned meeting. 5. Explanatory Statement on Special Business: Ordinary Resolution The Ordinary Resolution proposed under item 5, if passed, will give powers to the Directors to issue shares up to a maximum ten per centum (10%) of the issued share capital of the Company for the time being for such purposes as the Directors consider would be in the interest of the Company. This authority unless revoked or varied by the Company at a general meeting will expire at the next Annual General Meeting. 2

4 N OT I S M E S Y U A R AT AG U N G TA H U N A N DENGAN INI DIMAKLUMKAN bahawa Mesyuarat Agung Tahunan Arab-Malaysian Corporation Berhad ( Syarikat ) yang ke Lapan Puluh Enam akan diadakan di Lot 271, Jalan Dua, Off Jalan Chan Sow Lin, Kuala Lumpur, pada hari Selasa, 26hb September, 2000, jam pagi untuk tujuan-tujuan berikut:- Perkara Agenda Resolusi di Borang Proksi 1. Untuk menerima Akaun-Akaun Teraudit bagi tahun berakhir 31hb. Mac, 2000 serta Laporan Pengarah dan Laporan Juruaudit mengenainya. (Resolusi No. 1) 2. Untuk meluluskan pembayaran yuran para Pengarah sebanyak RM96,000 bagi tahun berakhir 31hb. Mac, Untuk melantik semula Pengarah-Pengarah berikut yang bersara mengikut Artikel 104 Tataurusan Syarikat:- i) Y. Bhg. General (Rtd) Tan Sri Dato Mohd Hashim bin Mohd Ali ii) Y. Bhg. Dato Azlan Hashim 4. Untuk melantik semula Tetuan Deloitte KassimChan (dahulunya dikenali sebagai Kassim Chan & Co.), juruaudit yang telah tamat tempohnya dan untuk memberikan kuasa kepada para Pengarah bagi menentukan ganjaran mereka. 5. SEBAGAI URUSAN KHAS Mempertimbang dan, jika difikirkan sesuai, meluluskan dengan atau tanpa sebarang pindaan pada resolusi berikut sebagai Resolusi Biasa: (Resolusi No. 2) (Resolusi No. 3) (Resolusi No. 4) (Resolusi No. 5) RESOLUSI BIASA-KEBENARAN UNTUK MENERBITKAN SAHAM BAHAWA tertakluk kepada Akta Syarikat, 1965 dan kelulusan-kelulusan yang diperlukan dari pihak berkuasa kerajaan dan/atau penguatkuasa peraturan berkaitan, para Pengarah akan dan dengan ini diberi kuasa, berhubung dengan Seksyen 132D dalam Akta Syarikat, 1965 untuk menerbitkan saham dalam Syarikat, dari semasa ke semasa pada harga, menurut terma-terma dan syarat-syarat bagi tujuan berkenaan dan kepada orang atau orangorang berkenaan yang para Pengarah anggap sesuai asalkan bilangan agregat saham yang diterbitkan berhubung dengan resolusi ini tidak melebihi 10% daripada modal saham terbitan Syarikat pada ketika itu DAN BAHAWA Lembaga Pengarah juga diberi kuasa untuk mendapatkan kelulusan bagi penyenaraian dan sebutharga saham tambahan yang akan diterbitkan di Bursa Saham Kuala Lumpur DAN BAHAWA kuasa sedemikian akan terus berkuatkuasa sehingga tamat Mesyuarat Agung Tahunan Syarikat yang berikutnya. 6. Untuk membincangkan lain-lain perkara yang mana notisnya telah pun diterima. (Resolusi No. 6) Dengan Perintah Lembaga Pengarah OOI CHIN KHOON (MIA 6245) YEOH CHONG KEAT (MIA 2736) Setiausaha-setiausaha Syarikat Kuala Lumpur 11hb September, 2000 NOTA 1. Seseorang pemegang saham yang berhak hadir dan mengundi di Mesyuarat ini adalah berhak melantik seorang proksi (tidak melebihi dua) untuk hadir dan mengundi bagi pihaknya. Bagi pemegang saham yang melantik dua orang proksi, perlantikan adalah tidak sah kecuali pemegang saham menentukan jumlah saham yang diwakili oleh setiap proksi yang dilantik. 2. Proksi boleh tetapi tidak semestinya seorang ahli Syarikat. 3. Jika borang proksi ini dikeluarkan oleh sebuah Korporat, ia mestilah disempurnakan di bawah meterai atau ditandatangani oleh peguam yang diberi kuasa. 4. Borang proksi yang telah disempurnakan hendaklah dihantar kepada Pejabat Berdaftar Syarikat di Suite 11.1A, Level 11, Menara Weld, 76 Jalan Raja Chulan, Kuala Lumpur tidak lewat dari 48 jam sebelum waktu Mesyuarat yang ditetapkan. 5. Nota Penjelasan untuk Urusan Khas: Resolusi Biasa Resolusi Biasa yang dibentangkan di bawah perkara 5, jika diluluskan, akan memberi kuasa kepada para Pengarah untuk menerbitkan saham tidak melebihi 10% daripada modal saham terbitan Syarikat dari masa ke semasa yang dianggap sesuai oleh para Pengarah demi kepentingan Syarikat. Kuasa sedemikian, kecuali diubahsuai atau dibatalkan oleh Syarikat di Mesyuarat Agung, akan terus berkuatkuasa hingga tamatnya Mesyuarat Agung Tahunan Syarikat yang berikutnya. 3 Lapo ra n Tahunan

5 C O R P O R AT E I N F O R M AT I O N M A K L U M AT K O R P O R AT BOARD OF DIRECTORS LEMBAGA PENGARAH Y. Bhg. Tan Sri Dato Azman Hashim PSM, DPMS, JMN, KMN Executive Chairman/Pengerusi Eksekutif Y. Bhg. Dato Azlan Hashim DSNS, DSSA Executive Vice Chairman/Timbalan Pengerusi Eksekutif Y. Bhg. Prof. Tan Sri Dato Dr. Mohd Rashdan Haji Baba PSM, DPMS, SIMP, JSM, PPT Y. Bhg. General (Rtd) Tan Sri Dato Mohd Hashim bin Mohd Ali PJAT, PMN, PSM, SPMS, SIMP, SPTS, DPMS, DSDK, JMN, SMS, AMN, ABS, FBIM Y. Bhg. Dato Dr. Lee Lam Thye DPMP, JMN Azmi Hashim Soo Kim Wai Managing Director/Pengarah Urusan AUDIT COMMITTEE/JAWATANKUASA AUDIT Y.Bhg. Prof. Tan Sri Dato Dr Mohd Rashdan Haji Baba Y.Bhg. General (Rtd) Tan Sri Dato Mohd Hashim Mohd Ali Y.Bhg. Dato Dr. Lee Lam Thye Azmi Hashim COMPANY SECRETARIES/SETIAUSAHA SYARIKAT Bernie Ooi Chin Khoon (MIA 6245) Yeoh Chong Keat (MIA 2736) REGISTERED OFFICE/PEJABAT BERDAFTAR Suite 11.1A, Level 11, Menara Weld, 76 Jalan Raja Chulan, Kuala Lumpur Tel: Fax: REGISTRAR/PENDAFTAR PFA Registration Services Sdn Bhd 1301, Level 13, Uptown 1, No. 1, Jalan SS 21/58, Damansara Uptown, Petaling Jaya. Tel: Fax: HEAD OFFICE/IBU PEJABAT 1st Floor, Lot 271, Jalan Dua, Off Jalan Chan Sow Lin, Kuala Lumpur Tel: Fax: URL: http// AUDITORS/JURUAUDIT Deloitte KassimChan (formerly known as Kassim Chan & Co.) Public Accountants PRINCIPAL BANKERS/BANK-BANK UTAMA RHB Bank Berhad Malayan Banking Berhad STOCK EXCHANGE LISTING/ PENYENARAIAN BURSA SAHAM The Kuala Lumpur Stock Exchange (Main Board) Bursa Saham Kuala Lumpur (Papan Utama) SENIOR MANAGEMENT PENGURUSAN KANAN Soo Kim Wai Managing Director/Pengarah Urusan Arab-Malaysian Corporation Berhad Azlan Baqee Abdullah Executive Director/Pengarah Eksekutif Properties Division/Bahagian Hartanah Ben Lee Keen Pong Executive Director/Pengarah Eksekutif Investment Division/Bahagian Pelaburan Bernie Ooi Chin Khoon Executive Director/Pengarah Eksekutif Corporate Services Division/Bahagian Perkhidmatan Korporat Lum Sing Fai Executive Director/Pengarah Eksekutif Financial Services Division/Bahagian Perkhidmatan Kewangan Szeto Hock Seng Chief Executive Officer/Ketua Pegawai Eksekutif Arab-Malaysian Corporation Builders Sdn Bhd Gerard Tan Boon Chuan Chief Executive Officer/Ketua Pegawai Eksekutif Melawangi Sdn Bhd John Ng Wan Cher Acting Chief Executive Officer/Pemangku Ketua Pegawai Eksekutif South Peninsular Industries Berhad Abdul Shukor Abdul Rahman General Manager/Pengurus Besar Arab-Malaysian Corporation Builders Sdn Bhd Nik Azlan Nik Aman Assistant General Manager/Penolong Pengurus Besar Arab-Malaysian Malls Management Sdn Bhd 4 Lap o ra n Tah u n an An n u al Re p o r t

6 F I V E Y E A R S G RO U P F I N A N C I A L S U M M A RY R I N G K A SA N K E WA N G A N L I M A TA H U N K U M P U L A N 1. ASSETS EMPLOYED/ASET DIGUNAKAN RM 000 RM 000 RM 000 RM 000 RM 000 Fixed Assets/Aset Tetap 44,788 47,582 67,057 63,778 65,348 Development expenditure and properties/ Perbelanjaan pembangunan dan hartanah 214, , , ,894 99,387 Associated companies/syarikat bersekutu 1,024, ,078 1,347,427 1,266,644 1,025,814 Current assets/aset semasa 973,820 1,046,601 1,244,543 1,491,471 1,501,891 Loans receivable/pinjaman akan terima 6,093 10,674 14,880 16,087 Long term investments/pelaburan jangka panjang 389, , , , ,122 Goodwill on consolidation/muhibah daripada penyatuan 30,325 35,397 34,155 27,110 27,084 Deferred expenditure/perbelanjaan tertunda Performance guarantee deposits/deposit jaminan perlaksanaan 30,393 34,657 37,233 Current liabilities/liabiliti semasa (1,323,608) (1,296,327) (976,538) (535,092) (681,527) 1,390,525 1,548,715 2,547,392 2,655,839 2,166, FINANCED BY/DIBIAYAI OLEH Share capital/modal saham 288, , , , ,736 Reserves/Rizab 357, ,096 1,028,376 1,105, ,584 Shareholders funds/dana pemegang saham 645, ,890 1,311,169 1,373,637 1,020,320 Irredeemable convertible unsecured loan stocks/stok pinjaman tak bercagar boleh tukar tak boleh tebus 375, , , , ,650 Minority interests/kepentingan minoriti 31,461 35,381 29,265 26,028 19,969 Long term liabilities/liabiliti jangka panjang 338, , , , ,969 1,390,525 1,548,715 2,547,392 2,655,839 2,166, REVENUE/PENDAPATAN Turnover/Perolehan 142, , , , ,373 Profit/(Loss) before tax/ Keuntungan/(Kerugian) sebelum cukai 263,895 (1,007,174) (45,394) 507, ,870 Profit/(Loss) after tax/ Keuntungan/(Kerugian) selepas cukai 195,605 (856,673) (96,314) 327, , PER SHARE (sen)/sesaham (sen) i) Gross earnings/(loss)/ Pendapatan/(kerugian) kasar 90.1 (357.9) (18.7) ii) Net earnings/(loss)/ Pendapatan/(kerugian) bersih 66.5 (304.7) (35.7) iii) Gross dividend/dividen kasar iv) Net tangible asset/aset ketara bersih Lapo ra n Tahunan An n u al Re p o r t

7 C H A I R M A N S S TAT E M E N T On behalf of the Board of Directors, I hereby present the Eighty-Sixth Annual Report of Arab-Malaysian Corporation Berhad ( AMCORP ) for the year ended 31 March GROUP PROFIT PERFORMANCE I am pleased to report that for the year ended 31 March 2000, the Group achieved a profit before tax and exceptional items of RM202.8 million against a loss of RM1,015.7 million for the previous year. Group profit after tax and minority interests amounted to RM190.0 million compared to a loss of RM861.7 million for the previous year. The turnaround in the Group s results was mainly due to the significant rebound in the performance of its associated companies, particularly AMMB Holdings Berhad ( AHB ). There was also an exceptional gain of RM79.3 million from the partial disposal of our investment in AHB. GROUP HIGHLIGHTS During the year the economy continued to recover while consumer confidence improved steadily. Given the more favourable economic conditions, there have been some significant progress in our restructuring efforts. On 31 January 2000, the creditors (of AMCORP and certain of its subsidiaries) had approved a proposed composite scheme of arrangement ( Proposed Scheme ) pursuant to Section 176 of the Companies Act, 1965 at the court-convened meetings. This was followed by the shareholders approval of the Proposed Scheme at the Extraordinary General Meeting ( EGM ) held on 25 February The Group had, pursuant to the proposed disposal of 68,206,855 ordinary shares in AHB ( AHB Shares ), sold a total of 20,110,800 AHB Shares between 9 August 1999 and 11 April 2000 to raise funds to repay some of its borrowings. On 5 May 2000, AMCORP via its wholly-owned subsidiary Melawangi Sdn Bhd had entered into a joint-venture agreement with Hamilton Concord Incorporated which will inject RM100 million capital to complete the construction of the proposed hotel at the AMCORP Trade Centre in Petaling Jaya. OPERATIONAL REVIEW FINANCIAL SERVICES DIVISION It has been a remarkable year for AHB which recorded a profit before tax of RM853.2 million compared to a loss before tax of RM1,850.0 million in the previous year. Arab-Malaysian Merchant Bank Berhad, Arab- Malaysian Bank Berhad and Arab-Malaysian Finance Berhad have begun to show profits again due to the recovery in the Malaysian economy. The stockbroking business under Arab-Malaysian Securities Sdn Bhd was also a significant contributor to profits on the back of a very strong performance of the Kuala Lumpur Stock Exchange. The Arab-Malaysian Banking Group has been identified by Bank Negara Malaysia as one of the ten anchor banks in the country. For this, AHB has signed a Memorandum of Understanding on merger with Utama Banking Group Berhad ( UBG ). It is expected that AHB s strong presence in Peninsular Malaysia will complement UBG s dominance in Sarawak and UBG s retail franchise will further enhance AHB s commercial banking arm. Fulcrum Capital Sdn Bhd ( FCSB ) is a financial intermediary which traditionally provides customised financial packages to meet its clients objectives. Like the previous year, FCSB will continue to focus on the management of its existing loan portfolio and loans recovery. FCSB will also be looking to less capitalintensive activities such as deal matching and consultancy as means to rebuild its income streams. 6

8 P E N YATA P E N G E R U S I Bagi pihak Lembaga Pengarah, saya membentangkan Laporan Tahunan ke Lapan Puluh Enam Arab-Malaysian Corporation Berhad ( AMCORP ) bagi tahun kewangan berakhir 31 Mac PRESTASI KEUNTUNGAN KUMPULAN Dengan gembiranya saya melaporkan bagi tahun berakhir 31 Mac 2000, Kumpulan AMCORP berjaya mencatatkan keuntungan sebelum cukai dan butiran terkecuali berjumlah RM202.8 juta berbanding kerugian sebanyak RM1,015.7 juta bagi tahun sebelumnya. Keuntungan selepas cukai dan kepentingan minoriti meningkat kepada RM190.0 juta berbanding dengan kerugian sebanyak RM861.7 juta pada tahun sebelumnya. Prestasi Kumpulan yang lebih baik ini adalah hasil daripada prestasi syarikat berkait terutamanya AMMB Holdings Berhad ( AHB ). Keuntungan terkecuali sebanyak RM79.3 juta juga diperolehi hasil daripada pelupusan sebahagian daripada pelaburan kami dalam AHB. SOROTAN PENTING KUMPULAN Dalam tahun ini, keadaan ekonomi terus semakin pulih manakala keyakinan pengguna meningkat dengan stabil. Dengan keadaan ekonomi yang lebih memberangsangkan, usaha penstrukturan semula kami telah menunjukkan kemajuan yang membanggakan. Pada 31 Januari 2000, para pemiutang (AMCORP dan anak-anak syarikat tertentu) telah meluluskan skim cadangan penyusunan semula ( Skim Cadangan ) di bawah Seksyen 176 Akta Syarikat 1965 di mesyuaratmesyuarat yang dipanggil oleh mahkamah. Ini diikuti dengan kelulusan para pemegang saham ke atas Skim Cadangan dalam Mesyuarat Agung Luar Biasa yang diadakan pada 25 Februari Kumpulan di bawah cadangan pelupusan 68,206,855 saham dalam AHB ( Saham AHB ), telah menjual sebanyak 20,110,800 Saham AHB di antara 9 Ogos 1999 dan 11 April 2000 untuk membolehkan AMCORP membayar semula sebahagian daripada pinjamannya. Pada 5 Mei 2000, AMCORP melalui anak syarikat milik penuhnya Melawangi Sdn Bhd telah memeterai perjanjian kerjasama dengan Hamilton Concord Incorporated yang akan menyuntik modal sebanyak RM100 juta untuk menyiapkan pembinaan hotel di AMCORP Trade Centre di Petaling Jaya. TINJAUAN OPERASI BAHAGIAN PERKHIDMATAN KEWANGAN Tahun ini merupakan tahun yang membanggakan bagi AHB yang telah mencatatkan keuntungan sebelum cukai berjumlah RM853.2 juta berbanding dengan kerugian sebelum cukai berjumlah RM1,850.0 juta pada tahun sebelumnya. Arab-Malaysian Merchant Bank Berhad, Arab- Malaysian Bank Berhad dan Arab-Malaysian Finance Berhad telah mula mencatatkan keuntungan semula berikutan keadaan ekonomi yang semakin pulih. Urusniaga pembrokeran saham di bawah Arab- Malaysian Securities Sdn Bhd juga merupakan penyumbang utama kepada keuntungan hasil daripada prestasi Bursa Saham Kuala Lumpur yang kembali kukuh. Kumpulan Perbankan Arab-Malaysian telah dikenalpasti oleh Bank Negara Malaysia sebagai salah satu bank daripada 10 bank teras di negara ini. Sehubungan itu, AHB telah menandatangani sebuah Memorandum Persefahaman untuk penggabungan dengan Utama Banking Group Berhad ( UBG ). Kedudukan kukuh AHB di Semenanjung Malaysia dijangka dapat melengkapi kedudukan UBG di Sarawak. Disamping itu, francais peruncitan UBG juga akan dapat meningkatkan kedudukan cabang perbankan komersil AHB. Fulcrum Capital Sdn Bhd ( FCSB ) adalah sebuah pengantara kewangan yang memberi khidmat pinjaman khusus untuk memenuhi tujuan pelanggan. Seperti tahun sebelumnya, FCSB akan giat menumpukan perhatian terhadap pengurusan portfolio pinjaman yang sedia ada dan pengkutipan semula pinjaman. FCSB juga sedang mencari peluang aktiviti yang kurang 7 Lapo ra n Tahunan

9 C H A I R M A N S S TAT E M E N T As part of the venture capital investment activities, Mezzanine Capital (Malaysia) Sdn Bhd via its whollyowned subsidiary MCM.COM Sdn Bhd is also actively evaluating investment opportunities in internet related businesses. It will leverage its relationships and track record in business building and the assets of the Group s business units to source, screen and develop viable new economy proposals. PROPERTY DIVISION In the year under review, the Property Division remained focused on managing the completed AMCORP Trade Centre ( ATC ), a landmark mixed commercial development in the heart of Petaling Jaya, and its major township project in Sibu Jaya (Sibu, Sarawak). ATC, which was developed by Melawangi Sdn Bhd ( MSB ), is enjoying high occupancy rates of 90% at its office towers and approximately 85% on the annexed 260,000 sq. ft. retail center known as AMCORP Mall. Continued efforts were taken to strategically On 5 May 2000, MSB entered into a joint-venture agreement with Hamilton Concord Incorporated to complete the construction of the hotel in the ATC. The international class hotel is designed to cater to the sophisticated needs of business travellers and an international hotel chain operator will be appointed to manage the hotel. During the year, the Property Division derived the bulk of its revenue from its Sibu Jaya township project, contributing a turnover of approximately RM42.5 million. The construction of low cost housing by Arab-Malaysian Corporation Builders Sdn Bhd is progressing well with 3,782 units of the public housing construction works completed whilst the remaining units are scheduled to be completed by December The first phase of the commercial development by DCP Industries Sdn Bhd comprising 44 units of three and four storey shophouses have also been completed and fully sold. On the whole, the Property Division recorded a loss before tax of RM33.1 million mainly due to the interest costs on its other major residential project known as Kayangan Heights in Shah Alam, developed by Arab- Malaysian Prima Realty Sdn Bhd ( AMPR ). Despite its successful sales of the earlier phases prior to the 1997 financial crisis, the management has adopted a prudent policy of waiting for a more opportune time to relaunch further sales. reposition AMCORP Mall as a neighbourhood mall with multiple enhancements and user-friendly features being added. The change was timely as consumer sentiments had improved and this would benefit AMCORP Mall s tenants. SOUTH PENINSULAR INDUSTRIES BERHAD South Peninsular Industries Berhad ( SPIB ) Group s core business of manufacturing injection moulded plastic parts and components for the export market continued to perform well. For the year ended 31 March 2000, SPIB achieved a profit before tax of RM7.7 million on a turnover of RM69.2 million compared to a profit before tax of RM6.7 million and a turnover of RM64.9 million in the previous year. 8

10 P E N YATA P E N G E R U S I memerlukan modal seperti pemadanan perjanjian dan khidmat nasihat untuk membina semula sumber pendapatannya. Sebagai sebahagian daripada aktiviti pelaburan modalnya, Mezzanine Capital (Malaysia) Sdn Bhd melalui anak syarikat milik-penuhnya MCM.COM Sdn Bhd juga sedang aktif mencari dan menilai peluang pelaburan dalam perniagaan yang berkaitan dengan internet. Ia akan menggunakan hubungan baiknya dan rekod pencapaian dalam pembangunan perniagaan dan aset Kumpulan untuk mendapat, memapar dan membangunkan serta mengembangkan cadangancadangan ekonomi yang baru. pendapatannya daripada projek bandar utama Sibu Jaya, yang menyumbangkan jualan kira-kira RM42.5 juta. Pembinaan rumah kos rendah oleh Arab- Malaysian Corporation Builders Sdn Bhd sedang berjalan dengan lancar di mana 3,782 unit pembinaan rumah awam telah disiapkan manakala unit selebihnya dijangka akan siap pada Disember Fasa pertama pembangunan komersil oleh DCP Industries Sdn Bhd yang terdiri daripada 44 unit rumah kedai setinggi tiga hingga empat tingkat juga telah siap dibina dan telah habis dijual. BAHAGIAN HARTANAH Dalam tahun tinjauan ini, Bahagian Hartanah masih lagi memusatkan perhatian pada pengurusan AMCORP Trade Centre ( ATC ) yang telah siap, mercu tanda pembangunan komersil bercampur di tengah-tengah Petaling Jaya, dan projek bandar utama di Sibu Jaya (Sibu, Sarawak). ATC, yang dibangunkan oleh Melawangi Sdn Bhd ( MSB ), sedang menikmati kadar penghunian yang tinggi, iaitu 90% untuk bangunan pejabat berkembar dan 85% untuk pusat membeli-belahnya yang seluas 260,000 kaki persegi, yang dikenali sebagai AMCORP Mall. Usaha yang berterusan telah dijalankan untuk meletakkan semula AMCORP Mall sebagai pusat membeli-belah yang bersifat kejiranan dengan menambah pelbagai ciri-ciri yang lebih menarik dan mudah dinikmati dan digunakan. Perubahan ini tepat pada masanya memandangkan sentimen pengguna semakin baik dan ini pastinya menguntungkan para peniaga di AMCORP Mall. Pada 5 Mei 2000, MSB telah menandatangani perjanjian kerjasama dengan Hamilton Concord Incorporated untuk menyiapkan pembinaan hotel di ATC. Hotel bertaraf antarabangsa ini telah direka untuk memenuhi keperluan sofistikated ahli perniagaan dan pengusaha hotel antarabangsa akan dilantik untuk menguruskan hotel tersebut. Sepanjang tahun ini, Bahagian Hartanah telah memperolehi sebahagian besar daripada Secara keseluruhannya, Bahagian Hartanah mencatatkan kerugian sebelum cukai berjumlah RM33.1 juta yang mana sebahagian besarnya adalah kos faedah ke atas projek perumahan utama dikenali sebagai Kayangan Heights di Shah Alam, yang diusahakan oleh Arab-Malaysian Prima Realty Sdn Bhd ( AMPR ). Walaupun jualannya membanggakan pada fasa awal sebelum bermulanya krisis kewangan 1997, pihak pengurusan mengambil langkah berjaga-jaga dengan menunggu peluang masa yang lebih baik untuk melancarkan semula jualan untuk unit selebihnya. SOUTH PENINSULAR INDUSTRIES BERHAD Kumpulan South Peninsular Industries Berhad ( SPIB ) yang terlibat dalam pengeluaran bahagian dan komponen plastik beracuan suntikan untuk pasaran eksport sebagai kegiatan utamanya, terus menunjukkan prestasi yang cemerlang. Bagi tahun berakhir 31 Mac 2000, SPIB mengaut keuntungan sebelum cukai berjumlah RM7.7 juta daripada jualan sebanyak RM69.2 juta berbanding dengan keuntungan sebelum cukai berjumlah RM6.7 juta dan jualan sebanyak RM64.9 juta pada tahun lepas. 9 Lapo ra n Tahunan

11 C H A I R M A N S S TAT E M E N T ARAB-MALAYSIAN DEVELOPMENT BERHAD The Arab-Malaysian Development Berhad ( AMDB ) Group recorded a loss before tax of RM8.2 million compared to a loss before tax of RM137.9 million in the previous year. The improved performance was largely due to declining interest rates and increased business activities. The property division of AMDB recorded a loss before tax of RM3.4 million compared to a loss before tax of RM94.3 million in the previous year. However, turnover has decreased from RM130.4 million in the previous year to RM55.4 million. The decline in turnover was due to the deferment of some planned projects resulting from the sluggish property market. The engineering and construction division, which consists of Arab-Malaysian Blue Star Sdn Bhd, Arab- Malaysian Best & Crompton Sdn Bhd and Supermix Concrete (Malaysia) Sdn Bhd, managed to turnaround with a profit before tax of RM2.6 million against a loss before tax of RM38.8 million in the previous year. REDIFFUSION BERHAD Rediffusion Berhad ( RB ) recorded a turnover of RM37.2 million, representing a 15% increase from the previous year. This was due to higher advertising spending as the economy improved further. As a result, profit before tax was higher at RM4.3 million compared to a profit before tax of RM1.0 million in the last financial year. In the year under review, RB ventured into the e- commerce business by entering into an agreement with JIC.net Sdn Bhd ( JIC ). JIC is a commercial arm of the Johor State Government and is fully funded by Permodalan Usahawan Johor Berhad. In the agreement with JIC, RB will be offered the opportunity to invest in e-commerce projects successfully developed by JIC and ready for commercialisation. CORPORATE DEVELOPMENT On 16 July 1998, AMCORP and certain of its subsidiaries obtained a restraining order under Section 176 of the Companies Act 1965 for the purpose of implementing the Proposed Scheme formulated to enable an orderly disposal of its assets, particularly its marketable securities at optimum value to ensure full repayment of its borrowings. On 31 January 2000, Commerce International Merchant Bankers Berhad on behalf of AMCORP announced that the Proposed Scheme for AMCORP and some of these subsidiaries have received the approval of their respective creditors at the courtconvened meetings held on 31 January 2000 ( Approved Scheme ). A total of approximately RM1.4 billion of debts owing to creditors as at 30 June 1998 will be restructured under the Approved Scheme. The Approved Scheme will involve the settlement of debts via cash repayment, conversion into term loans and redeemable convertible secured loan stocks and the issuance of ordinary shares in AMCORP ( AMCORP Shares ). The Approved Scheme is now subject to the approval of the relevant authorities following the approval of the shareholders at the EGM on 25 February SHARE CAPITAL AND DIVIDENDS As at 31 March 2000, the total issued and paid-up share capital of AMCORP has increased to RM288,007,466 comprising 288,007,466 ordinary shares of RM1.00 each, from RM282,794,466 as at 31 March 1999 due to the subscriptions pursuant to the Employees Share Option Scheme. To conserve cash, the Board of Directors have recommended that no dividend be declared for the year ended 31 March OUTLOOK With strong GDP growth expected in the coming year, the management is confident that the Group s profits will improve. We will continue to downsize our existing 10

12 P E N YATA P E N G E R U S I REDIFFUSION BERHAD Rediffusion Berhad ( RB ) telah mencatatkan jualan sejumlah RM37.2 juta, menunjukkan peningkatan sebanyak 15% berbanding tahun lepas. Ini adalah disebabkan oleh peningkatan dalam perbelanjaan pengiklanan berikutan pemulihan ekonomi. Ekoran itu, RB berjaya mencatatkan keuntungan sebelum cukai yang lebih tinggi berjumlah RM4.3 juta berbanding dengan keuntungan sebelum cukai sebanyak RM1.0 juta pada tahun kewangan yang lepas. ARAB-MALAYSIAN DEVELOPMENT BERHAD Kumpulan Arab-Malaysian Development Berhad ( AMDB ) mencatatkan kerugian sebelum cukai sebanyak RM8.2 juta berbanding dengan kerugian sebelum cukai sebanyak RM137.9 juta yang dicatatkan tahun lepas. Peningkatan dalam prestasi ini adalah hasil daripada kadar faedah yang menurun dan peningkatan dalam aktiviti perniagaan. Bahagian hartanah dari AMDB telah mencatatkan kerugian sebelum cukai sebanyak RM3.4 juta berbanding dengan kerugian sebelum cukai sebanyak RM94.3 juta untuk tahun yang lepas. Walau bagaimanapun, jualan merosot daripada RM130.4 juta pada tahun lepas kepada RM55.4 juta pada tahun ini. Kemerosotan ini adalah disebabkan oleh penundaan beberapa projek berikutan pasaran hartanah yang lembab. Bahagian kejuruteraan dan pembinaan, yang terdiri daripada Arab-Malaysian Blue Star Sdn Bhd, Arab- Malaysian Best & Crompton Sdn Bhd dan Supermix Concrete (Malaysia) Sdn Bhd, berjaya mencapai keuntungan sebelum cukai sebanyak RM2.6 juta berbanding dengan kerugian sebelum cukai berjumlah RM38.8 juta pada tahun lepas. Dalam tahun tinjauan ini, RB telah melibatkan diri dalam perniagaan perdagangan elektronik dengan memeterai perjanjian dengan JIC.net Sdn Bhd ( JIC ). JIC merupakan cabang komersil Kerajaan Negeri Johor dan dibiayai sepenuhnya oleh Permodalan Usahawan Johor Berhad. Mengikut perjanjian dengan JIC, RB akan ditawarkan peluang untuk melabur dalam projek perdagangan elektronik yang telah diusahakan dengan jayanya oleh JIC dan bersedia untuk dilancarkan bagi tujuan komersil. PERKEMBANGAN KORPORAT Pada 16 Julai 1998, AMCORP dan sebahagian daripada anak-anak syarikat tertentunya telah memperolehi perintah halangan di bawah Seksyen 176 Akta Syarikat 1965 bagi melaksanakan Skim Cadangan untuk membolehkan pelupusan teratur aset-aset, terutamanya saham-saham pada nilai tertinggi untuk memastikan pembayaran balik pinjaman dengan sepenuhnya. Pada 31 Januari 2000, Commercial International Merchant Bankers Berhad bagi pihak AMCORP telah mengumumkan Skim Cadangan untuk AMCORP dan anak-anak syarikat tertentunya telah mendapat kelulusan daripada para pemiutangnya dalam mesyuarat yang dipanggil mahkamah yang diadakan pada 31 Januari 2000 ( Skim yang Diluluskan ). Sejumlah RM1.4 bilion hutang kepada pemiutang pada 30 Jun 1998 akan distruktur semula di bawah Skim yang Diluluskan. Skim yang Diluluskan ini akan melibatkan penjelasan hutang melalui bayaran tunai, penukaran kepada pinjaman berpenggal dan stok pinjaman bercagar boleh tukar boleh tebus dan penerbitan saham biasa AMCORP ( Saham AMCORP ). 11 Lapo ra n Tahunan

13 C H A I R M A N S S TAT E M E N T operations and dispose of non-core businesses and at the same time explore opportunities in the information technology industry with the ultimate aim of having a more balanced earnings for the Group from banking and venture capital investment. We also expect the Group s debt restructuring scheme to be implemented in the coming year which will then allow us to focus more efforts on our long-term economic goal of maximising the value of the Group s businesses. enthusiasm and dedication of our directors and employees. I also wish to extend our gratitude to the various Government authorities, financial institutions and our business associates for their co-operation and assistance. To all shareholders, we would like to thank you for your continued support and confidence. APPRECIATION On behalf of the Board of Directors, I would like to thank all our employees who, over the past year, have played an important role in the Group s success. The last few years have brought many challenges but AMCORP will emerge stronger principally due to the Tan Sri Dato Azman Hashim Executive Chairman Kuala Lumpur 5 July

14 P E N YATA P E N G E R U S I Walau bagaimanapun, Skim yang Diluluskan itu kini tertakluk kepada kelulusan daripada pihak-pihak berkuasa yang berkenaan berikutan daripada kelulusan oleh pemegang saham pada Mesyuarat Agung Luar Biasa yang diadakan pada 25 Februari 2000 lalu. MODAL SAHAM DAN DIVIDEN Pada 31 Mac 2000, jumlah modal saham diterbitkan dan berbayar AMCORP telah meningkat kepada RM288,007,466 yang terdiri daripada 288,007,466 saham biasa bernilai RM1.00 setiap satu, daripada RM282,794,466 pada 31 Mac 1999 hasil daripada langganan Skim Opsyen Saham Pekerja. Untuk menjimatkan tunai, pihak Lembaga Pengarah tidak mencadangkan pembayaran dividen bagi tahun kewangan berakhir 31 Mac PROSPEK Dengan peningkatan GDP yang kukuh dijangkakan dalam tahun akan datang, pihak pengurusan yakin bahawa keuntungan Kumpulan akan terus bertingkat. Kami akan meneruskan usaha mengurangkan saiz operasi dan menjual aset-aset bukan utama dan pada masa yang sama, mencari peluang dalam industri teknologi maklumat dengan tujuan utamanya untuk mencapai pendapatan yang lebih seimbang dalam Kumpulan daripada perbankan dan pelaburan modalnya. Kami juga menjangkakan skim penyusunan semula Kumpulan yang akan dilaksanakan pada tahun akan datang akan memberi peluang untuk kami menumpukan lebih usaha pada objektif jangka masa panjang iaitu memaksimakan nilai perniagaan Kumpulan. PENGHARGAAN Bagi pihak Lembaga Pengarah, saya ingin mengucapkan terima kasih kepada semua kakitangan yang telah memainkan peranan penting dalam kejayaan Kumpulan pada tahun sebelum ini. Beberapa tahun kebelakangan ini telah membawa pelbagai cabaran tetapi AMCORP akan muncul kembali dengan lebih kukuh hasil daripada semangat dan dedikasi pengarah dan kakitangan kami. Saya juga ingin merakamkan penghargaan kepada pelbagai agensi kerajaan, institusi kewangan dan rakan niaga kami atas kerjasama dan bantuan mereka. Saya juga ingin mengucapkan ribuan terima kasih kepada pemegang-pemegang saham atas sokongan dan keyakinan mereka yang berterusan. Tan Sri Dato Azman Hashim Pengerusi Eksekutif Kuala Lumpur 5 Julai Lapo ra n Tahunan

15 A U D I T C O M M I T T E E The Audit Committee was formed on 12 April 1994 and currently comprises the following members:- Chairman : Y.BHG. PROF. TAN SRI DATO DR. MOHD RASHDAN HAJI BABA (Independent Non-Executive Director) Members : Y.BHG. GENERAL (Rtd) TAN SRI DATO MOHD HASHIM BIN MOHD ALI (Independent Non-Executive Director) : Y.BHG. DATO DR. LEE LAM THYE (Independent Non-Executive Director) : ENCIK AZMI HASHIM (Non-Executive Director) TERMS OF REFERENCE Constitution 1. The board hereby resolved to establish a Committee of the Board to be known as the Audit Committee. Membership 2. The Committee shall be appointed by the Board from among their number and shall consist of not less than three members of whom a majority shall not be: executive directors of the Company or any related corporation, a spouse, parent, brother, sister, son or adopted son, daughter or adopted daughter of an executive director of the Company or of any related corporation, spouse of brother, sister, son or adopted son, daughter or adopted daughter of an executive director of the Company or of any related corporation, or/and any person having a relationship which, in the opinion of the Board of Directors, would interfere with the exercise of independent judgement in carrying out the functions of the Audit Committee. 3. The members of the Committee shall select a Chairman from among their number who is not an executive director or employee of the Company or any related corporation. 4. If a member of the Committee resigns, dies or for any reason ceases to be a member with the result that the number of members is reduced to below 3, the Board of Directors shall, within 3 months of that event, appoint such number of new members as may be required to make up the minimum number of 3 members. 5. The terms of office of Committee Members should be reviewed by the Board not less than every three years. 14

16 J AWATA N K U A S A AU D I T Jawatankuasa Audit ini telah dibentuk pada 12 April 1994 dan ahli-ahlinya sekarang adalah seperti berikut:- Pengerusi : Y.BHG. PROF. TAN SRI DATO DR. MOHD RASHDAN HAJI BABA (Pengarah Bebas Bukan Eksekutif) Ahli-Ahli : Y.BHG. GENERAL (Rtd) TAN SRI DATO MOHD HASHIM BIN MOHD ALI (Pengarah Bebas Bukan Eksekutif) : Y.BHG. DATO DR. LEE LAM THYE (Pengarah Bebas Bukan Eksekutif) : ENCIK AZMI HASHIM (Pengarah Bukan Eksekutif) BIDANG TUGAS Perlembagaan 1. Lembaga telah membuat keputusan menubuhkan sebuah Jawatankuasa Pengarah dikenali sebagai Jawatankuasa Audit. Keahlian 2. Ahli-ahli Jawatankuasa akan dilantik oleh Lembaga sesama sendiri dan mesti tidak kurang daripada tiga orang ahli yang mana majoriti mesti bukan: pengarah eksekutif Syarikat atau mana-mana syarikat berkaitan, suami/isteri, ibu bapa, abang, kakak, adik, anak atau anak angkat kepada seorang pengarah eksekutif Syarikat atau mana-mana syarikat berkaitan. suami/isteri kepada abang, kakak, adik, anak atau anak angkat kepada seorang pengarah eksekutif Syarikat atau mana-mana syarikat berkaitan, atau/dan sesiapa yang mempunyai perhubungan yang, pada pendapat Lembaga Pengarah boleh mengganggu keupayaannya untuk menilai secara bebas, dalam melaksanakan fungsi Jawatankuasa Audit. 3. Ahli-ahli Jawatankuasa akan memilih sesama sendiri seorang Pengerusi yang bukan seorang pengarah eksekutif atau pekerja Syarikat atau mana-mana syarikat berkaitan. 4. Jika seorang ahli Jawatankuasa meletak jawatan, meninggal dunia atau oleh kerana apa-apa sebab tidak lagi menjadi ahli dan mengakibatkan jumlah ahli kurang daripada tiga, Lembaga Pengarah akan, dalam jangkamasa 3 bulan dari tarikh kejadian, melantik jumlah ahli-ahli baru seperti yang diperlukan untuk mencapai keahlian minima iaitu 3 orang ahli. 5. Tempoh Ahli-ahli Jawatankuasa memegang jawatan harus dikaji oleh Lembaga tidak kurang dari setiap tiga tahun. 15 Lapo ra n Tahunan

17 A U D I T C O M M I T T E E Authority 6. The Committee is authorised by the Board to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are directed to cooperate with any request made by the Committee. 7. The Committee is authorised by the Board to obtain outside legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary. Functions 8. The functions of the Committee shall be: (a) to review: (i) (ii) (iii) (iv) (v) (vi) with the external auditors, the audit plan; with the external auditors, their evaluation of the system of internal accounting controls; with the external auditors, their audit report; the assistance given by the Company s officers to the external auditors; the scope and results of the internal audit procedures; the balance sheet and profit and loss account of the Company and, if it is a holding company, the consolidated balance sheet and profit and loss account, submitted to it by the Company or the holding company, and thereafter to submit them to the directors of the Company or the holding company; (vii) any related party transactions that may arise within the Company or Group; and (b) to consider the nomination of a person as auditors together with such other functions as may be agreed to by the Audit Committee and the Board of Directors. Attendance at Meetings 9. The Head of Finance, the Head of Internal Audit, and a representative of the external auditors shall normally attend meetings. Other Board members shall also have the right of attendance. 10. The Company Secretary shall be the Secretary of the Committee. Frequency of Meetings 11. Meetings shall be held not less than twice a year. The external auditors may request a meeting if they consider that one is necessary. Reporting Procedures 12. The Secretary shall circulate the minutes of meetings of the Committee to all members of the Board. 16

18 J AWATA N K U A S A AU D I T Kuasa 6. Jawatankuasa adalah diberikan kuasa oleh Lembaga untuk menyiasat sebarang aktiviti di dalam bidang tugasnya. Ia diberikan kuasa untuk memperolehi sebarang maklumat yang diperlukan daripada mana-mana pekerja dan semua pekerja diarahkan untuk bekerjasama atas permintaan Jawatankuasa. 7. Jawatankuasa diberikan kuasa oleh Lembaga untuk memperolehi nasihat professional dan bebas dari pihak luar dan mendapatkan bantuan pihak luar yang mempunyai pengalaman dan kepakaran yang berkenaan, sekiranya perlu. Fungsi 8. Fungsi Jawatankuasa adalah untuk: (a) mengkaji: (i) (ii) (iii) (iv) (v) (vi) bersama juruaudit luar, rancangan audit; bersama juruaudit luar, penilaian mereka mengenai sistem kawalan perakaunan dalaman; bersama juruaudit luar, laporan mereka; kerjasama yang diberikan oleh pegawai Syarikat kepada juruaudit luar; skop dan hasil prosedur audit dalaman; kunci kira-kira dan akaun untung rugi Syarikat dan sekiranya ianya sebuah syarikat induk, kunci kirakira dan akaun untung rugi disatukan, yang dikemukakan oleh Syarikat atau syarikat induk dan selepas itu, mengemukakannya kepada para pengarah Syarikat atau syarikat induk; (vii) sebarang urus niaga dengan pihak berkaitan yang melibatkan Syarikat atau Kumpulan; dan (b) mempertimbangkan pencalonan juruaudit bersama dengan fungsi-fungsi lain yang dipersetujui oleh Jawatankuasa Audit dan Lembaga Pengarah. Kehadiran dalam Mesyuarat 9. Ketua Kewangan, Ketua Audit Dalaman, dan seorang wakil juruaudit luar harus menghadiri mesyuarat. Lain-lain Ahli Lembaga juga berhak menghadirkan diri. 10. Setiausaha Syarikat adalah Setiausaha Jawatankuasa. Kekerapan Mesyuarat 11. Mesyuarat mesti diadakan tidak kurang dari dua kali setahun. Juruaudit luar boleh memanggil mesyuarat diadakan sekiranya perlu. Prosedur Pelaporan 12. Setiausaha harus mengedarkan minit mesyuarat Jawatankuasa kepada semua Ahli Lembaga. 17 Lapo ra n Tahunan

19 A R A B - M A L A Y S I A N C O R P O R A T I O N B E R H A D (Company No: 1166-T) (Incorporated in Malaysia)

20 F I N A N C I A L S TAT E M E N T S F O R T H E Y E A R E N D E D 31 S T M A RC H ( I n R i n g g i t Ma l a y s i a )

21 D I R E C TO R S R E P O RT The directors have pleasure in submitting their report and the audited accounts of the Group and of the Company for the year ended 31st March PRINCIPAL ACTIVITIES The principal activity of the Company is that of an investment holding company. The principal activities of the subsidiary and associated companies are as set out in Notes 9 and 10 to the accounts respectively. There have been no significant changes in the nature of the activities of the Company and the subsidiary and associated companies during the current financial year. RESULTS OF OPERATIONS The results of operations of the Group and of the Company for the financial year are as follows: Group RM 000 Company RM 000 (Loss)/Profit before interest on borrowings to part finance investment in associated companies and taxation (66,656) 3,559 Interest on borrowings to part finance investment in associated companies (10,101) (10,101) (76,757) (6,542) Share of profit of associated companies 279,517 Operating profit/(loss) before taxation 202,760 (6,542) Exceptional items 61,135 80,163 Profit before taxation 263,895 73,621 Taxation (68,290) Profit after taxation but before minority interests 195,605 73,621 Minority interests (5,628) Profit attributable to shareholders of the Company 189,977 73,621 (Accumulated losses)/unappropriated profit brought forward (167,882) 58,534 Unappropriated profit carried forward 22, ,155 In the opinion of the directors, the results of operations of the Group and of the Company during the financial year have not been substantially affected by any item, transaction or event of a material and unusual nature, except for the exceptional items as disclosed in Note 26 to the accounts. DIVIDENDS No dividend has been paid or declared by the Company since the end of the previous financial year. The directors also do not recommend the payment of any dividend in respect of the current financial year. 20

22 D I R E C TO R S R E P O RT RESERVES AND PROVISIONS There were no material transfers to or from reserves or provisions during the year other than as disclosed in the accounts. ISSUE OF SHARES AND DEBENTURES During the financial year, the issued and fully paid up share capital of the Company was increased from RM282,794,466 to RM288,007,466 through the subscription of 5,213,000 ordinary shares of RM1.00 each pursuant to the Employees Share Option Scheme, referred to in Note 34 to the accounts. The resulting share premium amounting to RM532,560 has been credited to share premium account as shown in Note 4 to the accounts. The new shares rank pari passu with the existing shares of the Company. The Company has not issued any new debentures during the financial year. EMPLOYEES SHARE OPTION SCHEME (ESOS) Pursuant to the ESOS which became effective on 26th August 1991, granting and exercise of options to subscribe up to 5% of the issued and paid-up share capital of the Company are made available to eligible directors and employees of the Group. The salient features of the scheme are as follows: i) eligible employees are those who have been confirmed in writing as employees of the Group for at least one year prior to the date of the offer. ii) iii) iv) the option is personal to the grantee and is non-assignable. the option price shall be determined by the average of the middle market quotation of the Company s ordinary shares as shown in the Daily Official list issued by the Kuala Lumpur Stock Exchange for the five trading days preceding the respective dates of the offer in writing to the grantee or at the par value of the ordinary shares of the Company, whichever is higher. the options granted may be exercised at anytime within a period of five years from the date of offer of the option or such shorter period as may be specifically stated in the offer upon giving notice in writing to the Company six months after the date of the offer. v) the options granted may be exercised in full or in lesser number of ordinary shares provided that the number shall be in multiples of 1,000 shares. During the financial year, the movements in the options to take up unissued ordinary shares of RM1.00 each and the exercise prices are as follows: 21