(A Member of the MTD Group) laporan tahunan 2005 annual report METACORP BERHAD (93570-P)

Transcription

1 (A Member of the MTD Group) laporan tahunan 2005 annual report METACORP BERHAD (93570-P)

2 corporate profile Metacorp Berhad is an investment holding company with its principal activities in property development, infrastructure development (tolling) and solid waste management. Metacorp was listed on the Second Board of Bursa Malaysia on 18 December 1991 before transferring to the Main Board on 20 July Metacorp Properties Sdn Bhd and Metacorp Development Sdn Bhd spearhead the Group s properties development activities comprising residential, commercial and industrial projects spread over 1,873 acres in Ayer Keroh, Melaka. Toll operations are undertaken by Metramac Corporation Sdn Bhd and currently cover the East-West Link Expressway and the Kuala Lumpur-Seremban Expressway, for which the concession period expires in May In the energy sector, Seseni Energy Services Sdn Bhd, through its 51% subsidiary Pendinginan Megajana Sdn Bhd, provides district cooling and co-generation systems to generate and supply chilled water to commercial complexes located in Cyberjaya. The Group s quarrying operations is carried out by Dimensi Timal Sdn Bhd. Metacorp s 50% subsidiary E-Idaman Sdn Bhd, through wholly-owned Environment Idaman Sdn Bhd, is involved in solid waste collection and management and related businesses. Metacorp is a member of the MTD Group, one of Malaysia s key infrastructure companies involved in privatised infrastructure development, construction and engineering, property development and other construction related activities.

3 cover rationale Where others see challenges, we see opportunities. This is because we have a clear view of what the future holds for us and, we intend to achieve what we have set out to do in the shortest time possible. We are confident that with our breadth and depth of experience and immense capabilities, we can chart our own destiny. Simply stated, we are on the right track and, we are accelerating our pace of growth. contents 2\\Corporate Information 3\\Corporate Structure 4\\Board of Directors Profile 6\\Report of the Audit Committee 9\\Statement on Corporate Governance 13\\Statement on Internal Control 15\\Group 5-Year Financial Highlights 16\\Group Executive Chairman s Statement/Penyata Pengerusi Eksekutif Kumpulan 22\\Operations Review/Tinjauan Operasi 30\\Analysis of Shareholdings 32\\Financial Statements 89\\List of Properties 90\\Notice of Annual General Meeting 93\\Statement Accompanying The Notice of Annual General Meeting Form of Proxy Metacorp Berhad \\ 2005 annual report

4 corporate information BOARD OF DIRECTORS Dato Dr. Nik Hussain bin Abdul Rahman Group Executive Chairman Dato Azmil Khalili bin Dato Khalid Group Managing Director Dato Nik Hassan bin Abdul Rahman Non-Independent Executive Director Dato Yu Wen Chieh Senior Independent Non-Executive Director Puan Adibah Khairiah binti Daud Independent Non-Executive Director AUDIT COMMITTEE Dato Yu Wen Chieh (Chairman ) Dato Nik Hassan bin Abdul Rahman Puan Adibah Khairiah binti Daud NOMINATION COMMITTEE Dato Yu Wen Chieh Puan Adibah Khairiah binti Daud REMUNERATION COMMITTEE Dato Yu Wen Chieh (Chairman) Dato Dr. Nik Hussain bin Abdul Rahman Puan Adibah Khairiah binti Daud COMPANY SECRETARIES Ms. Chan Bee Kuan Ms. Tan Kon Ling REGISTERED OFFICE No. 26, Jalan 2/6, Dataran Templer Bandar Baru Selayang Batu Caves Selangor Darul Ehsan Tel : Fax : CORPORATE OFFICE No. 22, Jalan 2/6, Dataran Templer Bandar Baru Selayang Batu Caves Selangor Darul Ehsan Tel : Fax : Website : SHARE REGISTRAR Mega Corporate Services Sdn Bhd Level 15-2, Faber Imperial Court Jalan Sultan Ismail Kuala Lumpur Tel : Fax : AUDITORS Ernst & Young Chartered Accountants Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Kuala Lumpur SOLICITORS Lee Hishammuddin Allen & Gledhill PRINCIPAL BANKERS Bumiputra-Commerce Bank Berhad Commerce International Merchant Bankers Berhad United Overseas Bank (Malaysia) Berhad STOCK EXCHANGE LISTING Main Board, Bursa Malaysia Securities Berhad 2 Metacorp Berhad \\ 2005 annual report

5 corporate structure Property Development & Letting of Property 100% Metacorp Properties Sdn Bhd 100% Metacorp Development Sdn Bhd 100% Exclusive Skycity Sdn Bhd Solid Waste Management 50% E-Idaman Sdn Bhd 100% Environment Idaman Sdn Bhd Infrastructure Development & Tolling 100% Metramac Corporation Sdn Bhd MTD METACORP * Energy 70% Seseni Energy Services Sdn Bhd 100% Seseni Energy Services (Johor) Sdn Bhd 51% Pendinginan Megajana Sdn Bhd Others 100% Metaurus Sdn Bhd 80% Dimensi Timal Sdn Bhd 100% Wonderful Haven Sdn Bhd 100% Metacorp Australia Pty Ltd 50% Whitsundays Hermitage Pty Ltd Construction & Engineering 29% ACP Industries Bhd* * Listed on Main Board, Bursa Malaysia Securities Berhad Metacorp Berhad \\ 2005 annual report 3

6 board of directors profile Dato' Dr. Nik Hussain bin Abdul Rahman Group Executive Chairman A Malaysian, aged 69, Dato Dr. Nik Hussain was appointed an Executive Director of Metacorp Bhd on 1 February 2002 and redesignated as Group Executive Chairman on 28 February He is also a member of the Remuneration Committee. Dato Dr. Nik Hussain holds a Bachelor in Dental Surgery from the University of Singapore. He served in the Malaysian civil service as Deputy Minister of Works and Deputy Minister of Telecommunications and Posts from 1976 to 1984 before venturing into business. Dato Dr. Nik Hussain is also the Group Executive Chairman of MTD Capital Bhd, Executive Vice-Chairman of MTD InfraPerdana Bhd and Executive Chairman of ACP Industries Bhd. He also sits on the board of several private limited companies. Dato Dr. Nik Hussain is the father-in-law of Dato Azmil Khalili bin Dato Khalid, the Group Managing Director and brother of Dato Nik Hassan bin Abdul Rahman, an Executive Director. He is a major shareholder of the Company by virtue of his direct and indirect interests in the Company. Dato' Azmil Khalili bin Dato Khalid Group Managing Director A Malaysian, aged 45, Dato Azmil was appointed an Executive Director of Metacorp Bhd on 1 February 2002 and redesignated as Group Managing Director on 28 February Dato' Azmil holds a Bachelor in Civil Engineering and a Master in Business Administration. He worked for Tarmac National Construction in the United Kingdom, Trust International Insurance and Citibank NA prior to joining MTD Capital Bhd in 1993 as General Manager, Corporate Planning. In 1996, he was redesignated Group Managing Director. Dato Azmil is also the Executive Vice Chairman of ACP Industries Bhd, Group Managing Director of MTD Capital Bhd and MTD InfraPerdana Bhd. He also sits on the board of several private limited companies. Dato Azmil is the son-in-law of Dato Dr. Nik Hussain bin Abdul Rahman, the Group Executive Chairman. Dato' Nik Hassan bin Abdul Rahman Non-Independent Executive Director A Malaysian, aged 77, Dato Nik Hassan was appointed an Executive Director of Metacorp Bhd on 27 June He is also a member of the Audit Committee. Dato Nik Hassan has extensive experience in the public and private sectors. He served as Principal Private Secretary to the first Prime Minister of Malaysia, the late YTM Tunku Abdul Rahman Putra Al-Haj from 1957 to 1971 before being appointed as the Menteri Besar of Terengganu from 1971 to He also served as a Director in Maybank and its group of companies from 1978 to Dato Nik Hassan is also the Executive Chairman of MTD InfraPerdana Bhd and Executive Director of MTD Capital Bhd. He also sits on the board of several private limited companies. Dato Nik Hassan is the brother of Dato Dr. Nik Hussain bin Abdul Rahman, the Group Executive Chairman. 4 Metacorp Berhad \\ 2005 annual report

7 Dato' Yu Wen Chieh Senior Independent Non-Executive Director A Malaysian, aged 68, Dato Yu was appointed an Independent Non-Executive Director of Metacorp Bhd on 9 February 2002 and subsequently, as Senior Independent Non-Executive Director on 1 August He is also the Chairman of the Audit Committee and Remuneration Committee and a member of the Nomination Committee. Dato Yu received his Fellowship Diploma in Civil Engineering from the Royal Melbourne Institute of Technology in 1961, and is a member of the Institute of Engineers, Malaysia and a Professional Engineer registered with the Board of Engineers, Malaysia. His last position prior to his retirement in 1991 was Director-General of Malaysian Highway Authority. Dato Yu is also a Senior Independent Non-Executive Director of MTD Capital Bhd. Puan Adibah Khairiah binti Daud Independent Non-Executive Director A Malaysian, aged 40, Puan Adibah was appointed an Independent Non-Executive Director of Metacorp Bhd on 1 February She is also a member of the Audit Committee, Remuneration Committee and Nomination Committee. Puan Adibah received her Bachelor in Commerce from the Australian National University in She is a qualified Chartered Accountant and is a member of the Malaysian Institute of Accountants. She served with Coopers & Lybrand, Public Accountants, from 1988 to 1994, Sapura Holdings Sdn Bhd as Audit Manager from 1994 to 1997 and Sapura Motors Berhad as Head of Internal Audit from 1997 to She is also an Independent Non-Executive Director of MTD Capital Bhd and a Director of Kesas Holdings Bhd. Notes: 1. Saved as disclosed, none of the Directors have any family relationship with any Directors and/or substantial shareholders of the Company. 2. None of the Directors have any conflict of interest with the Company. 3. None of the Directors have been convicted of any offence within the past 10 years other than traffic offences. 4. More than one third of the Board comprises Independent Directors. Metacorp Berhad \\ 2005 annual report 5

8 report of the audit committee MEMBERSHIP AND MEETINGS The Audit Committee comprises the following members and details of attendance of each member at meetings held during the financial year ended 31 March 2005 are as follows: Members Number of meetings held Attendance Dato Yu Wen Chieh 5 5 Chairman, Senior Independent Non-Executive Director Dato Nik Hassan bin Abdul Rahman 5 5 Non-Independent Executive Director Puan Adibah Khairiah binti Daud 5 5 Independent Non-Executive Director Dato Mustaffa bin Mohd (Resigned on 16 June 2005) 5 5 Independent Non-Executive Director TES OF REFERENCE 1. Objectives The principal objective of the Audit Committee is to assist the Board of Directors (the Board ) in discharging its statutory duties and responsibilities relating to accounting and reporting practices of the Company and its subsidiaries (the Group ). Specifically, the Audit Committee shall: - a. evaluate the quality of the audits performed by the internal and external auditors; b. provide assurance that the financial information presented by management is relevant, reliable and timely; c. oversee compliance with laws and regulations and observance of a proper code of conduct; and d. determine the quality, adequacy and effectiveness of the Group s control environment. 2. Composition The Audit Committee shall be appointed by the Board from among their number and shall comprise not fewer than three members, the majority of whom shall be independent directors. At least one member of the Audit Committee shall be:- a. a member of the Malaysian Institute of Accountants ( MIA ); or b. if he is not a member of the MIA, he must have at least 3 years of working experience and: i. he must have passed the examinations specified in Part I of the First Schedule of the Accountants Act 1967; or ii. he must be a member of one of the associations of accountants specified in Part II of the First Schedule of the Accountants Act 1967; or c. fulfils such other requirements as prescribed by the Bursa Malaysia Securities Berhad ( Bursa Securities ). The members of the Audit Committee shall elect a Chairman from amongst themselves who is an Independent Director. No alternate Director of the Board shall be appointed as a member of the Audit Committee. All members of the Audit Committee, including the Chairman, will hold office only so long as they serve as Directors of the Company. Should any member of the Audit Committee cease to be a director of the Company, his membership in the Audit Committee shall cease forthwith. In the event of any vacancy in the Audit Committee resulting in the noncompliance of the Listing Requirements of Bursa Securities (the Listing Requirements ), the Audit Committee shall ensure that the vacancy is filled within three months. The Board shall review the term of office and performance of Audit Committee and each of its members at least once in every three years. 6 Metacorp Berhad \\ 2005 annual report

9 3. Meetings The Audit Committee shall meet at least four times a year. In addition, the Chairman may call for additional meetings at any time at the Chairman s discretion. The Audit Committee may also invite any officer or employee of the Group to be in attendance to assist in its deliberations. At least once a year the Audit Committee shall meet with the external auditors without any executive board member present. The quorum for each meeting shall be two members, majority of whom present shall be Independent Directors. 4. Secretary The Secretary of the Audit Committee shall be the Company Secretary. The Secretary shall be responsible for drawing up the agenda with concurrence of the Chairman and circulating it, supported by explanatory documentation to members of the Audit Committee prior to each meeting. The Secretary shall also be responsible for keeping the minutes of meetings of the Audit Committee, circulating them to members of the Audit Committee and to the other members of the Board. 5. Authority The Audit Committee shall, in accordance with a procedure to be determined by the Board and at the expense of the Company, a. be authorised to investigate any activity within its terms of reference. All employees shall be directed to co-operate as requested by members of the Audit Committee; b. have full and unrestricted access to any information pertaining to the Company or the Group; c. obtain outside legal or other independent professional advice and secure the attendance of outsiders with relevant experience and expertise if necessary; d. be able to convene meetings with the external auditors, without the attendance of the executive Board members, whenever necessary; and e. be able to make relevant reports when necessary to the relevant authorities if a breach of the Listing Requirements occurs. 6. Duties and Responsibilities The duties and responsibilities of the Audit Committee are: - a. to review the quarterly, and annual financial statements prior to the approval by the Board, focusing on:- any significant changes to accounting policies and practices; significant adjustments arising from the audits; compliance with accounting standards and other legal requirements; and the going concern assumption; b. to review any related party transaction and conflict of interest situation that may arise within the Group including any transaction, procedure or course of conduct that raises questions of management integrity; c. to review and monitor the effectiveness of internal control system; d. to review the extent of compliance with established internal policies, standards, plans, procedures, laws and regulations; e. to obtain assurance that proper plans for control have been developed prior to the commencement of major areas of change within the Group; f. to review with the internal and external auditors the nature and scope of the audit plan and audit report; g. to review any matters concerning the appointment and re-appointment, audit fee and any questions of resignation or dismissal of external auditors; h. to review and evaluate factors related to the independence of internal and external auditors and assist them in preserving their independence; Metacorp Berhad \\ 2005 annual report 7

10 report of the audit committee (cont d) i. to review internal and external auditors findings arising from audits, particularly any comments and responses in management letters as well as the assistance given by the employees of the Group in order to be satisfied that appropriate action is being taken; j. to recommend to the Board steps to improve the system of internal control derived from the findings of the internal and external auditors and from the consultations of the Audit Committee itself; k. to review with the external auditors the Statement on Internal Control of the Group for inclusion in the annual report; l. to prepare the annual Audit Committee report to the Board which includes the composition of the Audit Committee, its terms of reference, number of meetings held, a summary of its activities and the existence of an internal audit function and a summary of the activities of that function for inclusion in the annual report; m. to review the performance of the internal audit function and feedback to the Board when necessary; and n. to carry out any other function that maybe mutually agreed upon by the Audit Committee and the Board when deem necessary and appropriate. SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE During the financial year under review, the Audit Committee carried out its duties as set out in the terms of reference and the activities are summarised as follows: - reviewed the quarterly financial statements and annual audited financial statements of the Group before recommending them for approval of the Board; reviewed the audit plan and audit fees proposed by external auditors and recommend to the Board the appointment and audit fee of external auditors; reviewed the internal audit reports presented by internal auditors on findings and recommendations with respect to system and controls weaknesses and ensure implementation of corrective actions; reviewed the Statement on Internal Control and its recommendations to the Board for inclusion in the Annual Report; reviewed related party transactions of the Company and of the Group; and verified the allocation of Employee Share Option Scheme ( ESOS ) options during the year to ensure that this was in compliance with the allocation criteria set and in accordance with the bye-laws of the ESOS. INTERNAL AUDIT FUNCTION The Internal Audit Function is carried out by the Group Internal Audit Department (the Group IAD ) of MTD Capital Bhd, the holding company. Group IAD assists the Audit Committee in discharging its duties and responsibilities, and is independent of the activities they audit. The primary role of the department is to undertake regular and systematic review of the system of internal control within the Group, so as to provide reasonable assurance that such system is sound, and that established policies and procedures are adhered to and continue to be effective and satisfactory. The Group IAD adopts risk-based approach when establishing its audit plan and strategy. During the year, the internal auditors had carried out audits according to the internal audit plan, which had been approved by the Audit Committee. The reports from the audits undertaken were forwarded to the management with audit recommendations for attention and necessary corrective actions. The management is responsible for ensuring the corrective actions on reported weaknesses are taken within appropriate time frame. The reports with management responses were presented to the Audit Committee for deliberation. 8 Metacorp Berhad \\ 2005 annual report

11 statement on corporate governance The Board of Directors recognises the importance of good corporate governance and is committed to ensure the highest standards of corporate governance practice throughout the Group, as set out in the Malaysian Code on Corporate Governance. There is a basic framework to achieve good corporate governance practices throughout the Group to enhance transparency and corporate accountability, efficiency and business prosperity with the ultimate objective of safeguarding shareholders interests and realising long term shareholders values. The Board is pleased to report on the main corporate governance practices for the financial year ended 31 March A. THE BOARD OF DIRECTORS The Board has the overall responsibility for corporate governance, setting strategic direction and overseeing the investments and operations of the Group to ensure the businesses are managed efficiently and competitively. In this respect, the Board delegates and empowers the Management to decide and approve on the Group s business activities, corporate plans and action on an on going basis in accordance to approved policies and business plan with clearly defined limits of authority and accountability whereby, the achievement of these goals by the Management are measured. (i) (ii) Composition of the Board The Board has six (6) members and comprises three (3) Non-Independent Executive Directors and three (3) Independent Non-Executive Directors in compliance with Paragraph of the Listing Requirements of Bursa Malaysia Securities Berhad ( Bursa Securities ). The size of the Board is sufficient to ensure effective representation for shareholders. A brief profile of each Director is set out on pages 4 to 5 of the Annual Report. Board Balance The Board members possess a wide range of legal, finance, technical and entrepreneur skill and experience which are vital for the strategic direction of the Group. The Board recognises the pivotal role of the independent directors in corporate accountability and they bring with them unbiased and independent views, advice and judgement to bear on the decision of the Board in the best interest of the Group. Dato Yu Wen Chieh is the Senior Independent Non-Executive Director to whom concerns may be conveyed. The roles of the Chairman and the Group Managing Director are clearly distinct and separated to ensure a balance of power and authority and are clearly defined in the Board Charter. The Chairman is responsible for ensuring the effectiveness and conduct of the Board and ensures the integrity and effectiveness of governance processes of the Group while the Group Managing Director has the overall responsibilities in the execution of policies and strategies to achieve effective operations within the Group, feedback, explain and clarify to the Board on matters pertaining to the business and operations of the Group. (iii) Board Meetings (iv) The Board meets regularly on a quarterly basis with additional meetings convened as and when necessary. Besides board meetings, consultation and sharing of expertise and experience between Directors are freely and frequently held and the Board exercises control on matters that require Board s approval through circulation of Directors Resolutions. For the financial year ended 31 March 2005, the Board met five times. The record of attendance of each Director is set out in the Statement Accompanying the Notice of Annual General Meeting. Supply of Information The Directors are provided with the agenda, Board papers and financial reports in sufficient time prior to board meetings to deal with the agenda of the meeting. Senior Management staff is invited to attend board meeting to provide the Board with detailed explanations and clarifications on certain matters that are tabled to the Board. In addition, there is a schedule of matters reserved specifically for the Board s deliberation and approval which includes company s corporate and business plan, acquisitions and disposals of businesses and assets of a substantial value and changes to the management and control structure within the Group including key policies, corporate plans, major investments and financial decisions. Metacorp Berhad \\ 2005 annual report 9

12 statement on corporate governance (cont d) (v) All Directors have unrestricted access to information within the Company as well as the advices and services of the Senior Management staff and Company Secretary. It is specified in the Board Charter that Directors may engage independent professionals at the Company s expense, if necessary, to obtain advice in furtherance of their duties. Appointment and Re-election of Directors (vi) Directors Training All Directors have attended the Mandatory Accreditation Programme as required by Bursa Securities. During the financial year, the Directors attended the Continuing Education Programme and will continue to undergo such other relevant training programmes to further enhance their skills and knowledge to deal with current and emerging business issues. The Nomination Committee established on 22 August 2003 composed exclusively of Independent Non-Executive Directors. The members are as follows: - Dato Mustaffa - Chairman, Independent bin Mohd Non-Executive Director (Resigned on 16 June 2005) Dato Yu - Senior Independent Wen Chieh Non-Executive Director Adibah Khairiah - Independent Nonbinti Ismail Executive Daud The Nomination Committee has formal Terms of Reference. It is responsible for nominating candidates with the required skills and attributes for approval of the Board to fill vacancies on the Board and Board committees and reviews the appropriate balance, size and effectiveness of the Board and Board committees as a whole and contribution of each individual Director. The Committee also recommends to the Board the names of the Directors who are to seek re-election at the Annual General Meeting ( AGM ). In accordance with the Company s Articles of Association, Directors who are appointed by the Board to fill a casual vacancy shall hold office only until the next following AGM and shall then be eligible for re-election but shall not be taken into account in determining the Directors who are to retire by rotation at the meeting. The Articles also provide that one-third (1/3) of the Directors or the number nearest to one-third (1/3) shall retire from office provided always that all Directors shall retire from office once at least in each three (3) years but shall be eligible for reelection. The Group Managing Director is appointed for a period not exceeding three (3) years and shall be subject to retirement by rotation. The details of Directors standing for reelection at the forthcoming AGM are set out in the Statement Accompanying the Notice of AGM. Directors over 70 years of age are required to submit themselves for re-appointment annually in accordance with Section 129(6) of the Companies Act, B. DIRECTORS REMUNERATION The Remuneration Committee was established on 1 August Its members comprise mainly of Independent Non-Executive Directors. The Remuneration Committee assists the Board in its responsibility in assessing the remuneration packages of the Executive Directors annually with a view to attract and retain the Directors of the right calibre to lead the Group successfully. The Remuneration Committee has written terms of reference which state clearly the extent and limits of their responsibility and authority. The Remuneration Committee considers the Company s remuneration policy and market practices when reviewing the remuneration of Executive Directors to link rewards to corporate and individual performance. None of the Executive Directors participate in any way in determining their individual remuneration. The determination of the fees for the Directors is a matter to be decided by the Board as a whole and the fees payable to the Directors will be recommended by the Board for approval by shareholders at the AGM. The fees payable to Board committee members are either fixed or based on meeting attendance. The Company reimburses expenses incurred by the Directors in the course of their duties as Directors. The members of the Remuneration Committee are as follows: - Dato Yu Wen Chieh - Chairman, Senior Independent Non- Executive Director Dato Dr. Nik Hussain - Non-Independent bin Abdul Rahman Executive Director Adibah Khairiah - Independent Nonbinti Ismail Executive Daud Dato Mustaffa - Independent Nonbin Mohd Executive Director (Resigned on 16 June 2005) 10 Metacorp Berhad \\ 2005 annual report

13 1. The aggregate remuneration of the Directors categorised into appropriate components during the financial year ended 31 March 2005 is as follows:- Executive Non-Executive Total Directors Directors ( 000) ( 000) ( 000) Salaries Fees Bonuses & Benefitsin-kind Total Number of Directors 2. The number of Directors whose total remuneration from the Group falls within the following bands are as follows:- Non- Executive Executive Total Below 50, ,001 to 100, ,001 to 350, C. RELATIONSHIP WITH SHAREHOLDERS AND INVESTORS The Board recognises the importance of disclosure of information on the Group s businesses and corporate developments to the shareholders and investors for their assessment of the company s performance and in respect of good governance practice. The AGM remains the principal forum for dialogue with shareholders where they may seek clarifications on the Group s businesses and performance. In addition, press briefing is normally held after the AGM for release of updated development and prospects of the Group to the public. Information are disclosed in the Company s Annual Report, quarterly financial results and the various announcements made through Bursa Securities from time to time to provide shareholders with an overview of the Group s performance and operation. The Company maintains a website at which provides shareholders and the public general access to information about the Company and facilitates communication between shareholders/investors and the Company. The Company encourages dialogues with institutional investors, fund managers and analysts to foster understanding about the Group s activities and other matters affecting investors interest. D. ACCOUNTABILITY AND AUDIT (i) (ii) Financial Reporting In presenting the annual financial statements and quarterly announcements of financial results, the Board has ensured that the Company adopts and consistently applied appropriate accounting policies and standards, make reasonable and prudent judgements and estimates so that the financial statements represent a true and fair assessment of the Company and Group s financial position. The Board vested responsibilities on the Audit Committee to review and assess the accuracy and adequacy of all the information to be disclosed in the financial statements to ensure compliance with the Companies Act, 1965 and the applicable approved accounting standards in Malaysia. The Directors Responsibilities for the financial statements is set out on page 12 of the Annual Report. Internal Control The Board through its Audit Committee maintains a sound and effective system of internal control to safeguard shareholders investment and the Group s assets. The Group Internal Control System manages but does not eliminate the risk of failure to achieve business objectives and provides only reasonable but not absolute assurance against material misstatement or loss or fraud. The Group has an internal audit department to assist the Audit Committee to discharge their duties and responsibilities. The Statement on Internal Control is set out on pages 13 to 14 of the Annual Report. Metacorp Berhad \\ 2005 annual report 11

14 statement on corporate governance (cont d) (iii) Relationship with Auditors The Board, through the Audit Committee, maintains a formal and transparent relationship with its external auditors in seeking professional advice and ensuring compliance with the accounting standards of Malaysia. The Audit Committee meets with the external auditors, without the presence of the executive board members at least once a year regarding audit planning and other relevant audit or accounting issues. A summary of the activities of the Audit Committee during the financial year is set out in the Audit Committee Report on pages 6 to 8 of the Annual Report. ADDITIONAL COMPLIANCE STATEMENT Utilisation of Proceeds During the financial year, there were no proceeds raised from any corporate proposal. Share Buy-Back During the financial year, the Company did not enter into any share buy-back transactions. Options, Warrants or Convertible Securities During the financial year, a total of 111,000 options were exercised pursuant to the Employees Share Option Scheme. During the financial year, there was no conversion of warrants. American Depository Receipt ( ADR ) or Global Depository Receipt ( GDR ) Programme During the financial year, the Company did not sponsor and/or participate in any ADR or GDR programme. Imposition of Sanctions and/or Penalties There were no sanctions and/or penalties imposed on the Company and its subsidiaries, directors or management by the relevant regulatory bodies during the financial year. Non-audit Fees There was no non-audit fee paid or payable to the external auditors of the Company during the financial year. Variation in Results There was no material variation between the audited results for the financial year ended 31 March 2005 and the unaudited results previously released for the quarter ended 31 March MATERIAL CONTRACTS Save as disclosed below, there were no material contracts entered into by the Company and/or its subsidiaries involving Directors and major shareholders interests during the financial year ended 31 March (i) By a Share Sale Agreement dated 10 December 2004 entered between Metacorp Berhad and MTD InfraPerdana Bhd, Metacorp Berhad agreed to dispose and MTD InfraPerdana Bhd agreed to purchase 65,028,973 ordinary shares of 1/- each representing the entire issued and paid-up share capital of Metramac Corporation Sdn. Bhd., a wholly owned subsidiary of Metacorp Berhad for a total cash consideration of 245 million. Revaluation Policy The Company does not have a revaluation policy on landed properties. Recurrent Related Party Transactions ( RRPT ) The information on RRPT for the financial year is set out in the financial statements. DIRECTORS RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS The Board is responsible for ensuring that the annual audited financial statements of the Company and the Group have been properly drawn up in accordance with the applicable approved accounting standards in Malaysia, the provisions of the Companies Act, 1965 and the Listing Requirements of Bursa Securities so as to give a true and fair view of the state of affairs of the Company and the Group. In preparing the financial statements, the Directors have:- adopted appropriate accounting policies and applied them consistently; made judgements and estimates that are reasonable and prudent; and ensured that the applicable accounting standards have been followed. The Board has a general responsibility in ascertaining and taking adequate measures that are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. Profit Guarantees There was no profit guarantee given by the Company during the financial year. 12 Metacorp Berhad \\ 2005 annual report

15 statement on internal control Introduction The Malaysian Code on Corporate Governance requires the board of listed companies to maintain a sound system of internal control to safeguard shareholders investments and the Company s assets. Paragraph 15.27(b) of the Listing Requirements of Bursa Malaysia Securities Berhad requires the Board of Directors (the Board ) of listed companies to include a statement in their annual report about the state of their internal control. Paragraph of the Listing Requirements states that the external auditors must review the statement made by the Board with regard to the state of internal control and reports the results thereof to the Board. Board Responsibility The Board acknowledges that it is responsible for the Company and its subsidiaries (the Group ) system of internal control ( Group Internal Control System ) and the review of its adequacy and integrity. The Group Internal Control System manages but does not eliminate the risk of failure to achieve business objectives. The Group Internal Control System provides only reasonable but not absolute assurance against material misstatement, loss or fraud. The Board has in place an ongoing process, for identifying, evaluating, monitoring and managing the significant risks faced by the Group, which is regularly reviewed by the Board and accords with the Statement on Internal Control: Guidance for Directors of Public Listed Companies. Enterprise Risk Management (E) During the financial year under review, the Risk Management Committee continued to expand its role further. With a proper E framework in place, management focus in essence, will be towards execution and implementation of the processes agreed beforehand in place. Selected key operating units were reviewed / tested during the financial year. Risk analysis from these findings were carried out and matched against the E framework in place. Where applicable, appropriate actions were then formulated to address the issues raised or in instances where inherent risks still exists, to minimize the impact to a level acceptable by the Management. E framework being an integral component of decisionmaking process by the Management is based on identification & assessment concept. The processes are constantly on going at the operational level of the key operating units from the workgroup levels at middle management to senior management level. The Board and Management are regularly briefed on measures undertaken on risks identified and action plans proposed or undertaken to mitigate those risks. The monitoring of these risks and subsequent measures undertaken are constantly being tested/reviewed to ensure that the effectiveness remained relevant to changes in market place. Over time, the Management expects E framework to provide sufficient documentation and groundwork to compliment the existing function of operational and financial audit currently undertaken by the Group Internal Audit Department (the Group IAD ). E is also expected to expand its role as a strategic process involved in formulating strategy and capital allocation for the company to rely on alongside the conventional methods available. Metacorp Berhad \\ 2005 annual report 13

16 statement on internal control (cont d) Audit Committee The Audit Committee, which is chaired by a senior independent non-executive director reviews the internal control issues identified by the Group IAD, the external auditors, regulatory authorities and management, and evaluates the adequacy and effectiveness of the Group Internal Control System. Internal Audit Function The Internal Audit Function is carried out by the Group IAD of MTD Capital Bhd, the holding company. The Group IAD independently carries out its function and provides the Audit Committee and the Board with the assurance on the adequacy and integrity of the system of internal control. The internal audit reviews the internal controls in the activities of the Group s businesses based on the annual audit plan, which is presented to the Audit Committee for approval. The internal audit adopts a risk-based approach and prepares its strategy and plan based on the risk profiles of the business units of the Group. Other Key Elements of Internal Control Apart from the above, the other key elements of the Group Internal Control System include: - Clear definition of responsibilities to the Board, Group Executive Chairman, Group Managing Director, Board Committees and operating units through well defined terms of references, position descriptions, organisation structure and authority levels for all aspects of the business as set out in the Board Charter and Limits of Authority of MTD Capital Bhd, the holding company. Policies and procedures manuals for key processes are documented and regularly updated for application across the Group. Where appropriate, certain companies have the ISO accreditation for their operational processes. Comprehensive systems of operations and financial reporting to the Board based on quarterly results and annual budgets. In the event of variances, measures are followed up and subsequent action proposed or taken. Provisions of regular and comprehensive information to management and employees. Proper guidelines for hiring and termination of staff, training programmes for staff and annual performance appraisal are in place to achieve the objective of ensuring staff are competent to carry out their responsibilities. Regular visits to operating units by senior management and internal auditors. Conclusion The Board is of the view that the system of internal control being instituted throughout the Group is sound and effective. Notwithstanding this, reviews of all control procedures will be continuously carried out to ensure the ongoing effectiveness and adequacy of the system of internal control, so as to safeguard shareholders investment and the Group s assets. The external auditors have reviewed this Statement on Internal Control for inclusion in the annual report for financial year ended 31 March 2005 and reported to the Board that no material issue has come to their attention that causes them to believe that the statement is inconsistent with their understanding of the process adopted by the Board in reviewing the adequacy and integrity of the system of internal control. 14 Metacorp Berhad \\ 2005 annual report

17 group 5-year financial highlights Revenue Group Pre-tax Profit Earnings Per Share Million / / /04 05 Group Shareholders Fund Million (32.70) Million Net Tangible Assets Per Share Sen (0.07) Sen / /04 05 Metacorp Berhad \\ 2005 annual report 15

18 group executive chairman s statement penyata pengerusi eksekutif kumpulan Dear valued shareholders, On behalf of the Board of Metacorp, I am pleased to present to you the Twenty- Second Annual Report and Financial Statements of Metacorp Group of Companies for financial year ended 31 March Para pemegang saham yang dihargai sekalian, Saya bagi pihak Lembaga Pengarah Metacorp dengan sukacitanya ingin membentangkan kepada anda sekalian Laporan Tahunan dan Penyata Kewangan Kedua Puluh Dua bagi Syarikat-syarikat dalam Kumpulan Metacorp untuk tahun kewangan berakhir 31 Mac

19 FINANCIAL PERFOANCE The year under review remained a challenging one for the Group. As mentioned in the 2004 Annual Report, the cessation of the Jalan Pahang toll concession on 18 March 2004 and losses at our associate companies impacted on the 2005 financial results. Group revenue of million and pre-tax profit of 20.0 million for the year in review represented a year-on-year decline of 9% and 51% respectively. DIVIDEND In view of the challenges ahead and the need to conserve our resources, the Board of Directors recommends a payment of a first and final dividend of 1.0 sen per share. (2004: 70 sen per share) CORPORATE HIGHLIGHTS In line with the Group and the Company s aim of expanding our portfolio beyond Malaysia s shores, a wholly-owned subsidiary Metacorp Australia Pty Ltd (MAPL) was incorporated on 8 September 2004 to seek out business opportunities in Australia. On 20 September 2004, MAPL entered into a Share Sale and Subscription Agreement to acquire a 50% stake in Whitsundays Hermitage Pty Ltd (WHPL), a construction and property development outfit that is currently developing resort apartments in Queensland, Australia. The quarter ended 31 March 2005, saw the Group further scale down its stake in Trenergy (Malaysia) Bhd to a mere 1.7%. The disposal of 12 million shares at 3.20 per share on the open market realised an exceptional gain at Group level of 9.72 million. Concurrently, as part of a group restructure of parent company, MTD Capital Berhad (MTD), Metacorp has proposed to divest Metramac Corporation Sdn Bhd (Metramac) to MTD InfraPerdana Bhd (MTD Infra). The proposed disposal is expected to return a gain of 70 million at Company level but a loss of approximately 4.7 million at Group level. PRESTASI KEWANGAN Tahun yang ditinjau masih merupakan tahun yang mencabar bagi Kumpulan. Seperti yang dinyatakan di dalam Laporan Tahunan 2004, penamatan konsesi tol Jalan Pahang pada 18 Mac 2004 dan kerugian di peringkat syarikat bersekutu yang menerima kesan pada keputusan kewangan Kumpulan mencatat hasil berjumlah juta dan keuntungan sebelum cukai berjumlah 20.0 juta bagi tahun yang ditinjau, masing-masing mencatat penurunan dari tahun ke tahun sebanyak 9% dan 51%. DIVIDEN Berdasarkan cabaran masa hadapan dan keperluan untuk memastikan keteguhan sumber kami, Lembaga Pengarah mengesyorkan bayaran dividen pertama dan akhir sebanyak 1.0 sen sesaham. (2004: 70 sen sesaham). PERKEMBANGAN PENTING KORPORAT Selaras dengan matlamat Kumpulan dan Syarikat untuk memperluaskan portfolio kita ke luar sempadan Malaysia, sebuah syarikat subsidiari milik penuh iaitu Metacorp Australia Pty Ltd (MAPL) telah diperbadankan pada 8 September 2004 untuk merebut peluang perniagaan di Australia. Pada 20 September 2004, MAPL telah memeterai Perjanjian Jualan dan Langganan Saham untuk mengambilalih 50% kepentingan dalam Whitsundays Hermitage Pty Ltd (WHPL), sebuah syarikat pembinaan dan pembangunan hartanah yang sedang membangunkan pangsapuri peranginan di Queensland, Australia. Metacorp Berhad \\ 2005 annual report 17

20 group executive chairman s statement (cont d) penyata pengerusi eksekutif kumpulan (samb.) PROPERTY DEVELOPMENT Property development division continued to be the biggest major contributor to Group revenue, recording total sales of 55.5 million, up 53% from 36.4 million in Of this, 48.7 million was from residential and commercial/industrial properties and 6.87 million from property letting activities. With the maturity of the Taman Tasik Utama (TTU) location, supported by an on-going marketing and promotions programme, TTU enjoyed a high take-up rate for all products launched during the period under review. The mixed-development continues to be the preferred township in Melaka for both personal and investment purposes. Complementing this is the low interest rate regime and stable economic outlook that have continued to engender consumers confidence in the property market. Whilst residential products remain the main thrust of the business, MPSB also took advantage of every opportunity to market its commercial and industrial properties by capitalizing on the State Government s new location at the Melaka International Trade Centre (MITC) in front of TTU and the newly-opened Ayer Keroh Paya Rumput highway. Recurring income from the rental of properties to Kolej Universiti Teknikal Kebangsaan Malaysia (KUTKM) remained stable and a source of regular revenue for the Group. TOLL OPERATIONS With the full impact of cessation of tolling at Jalan Cheras and Jalan Pahang, as anticipated, toll collection declined by approximately 37% to 49.4 million. However, toll revenue and traffic volume on both the East-West Link Expressway and Kuala Lumpur-Seremban Expressway continued on an upward trend. For the 12 months ended 31 March 2005, total traffic volume on the two expressways was up 6% to 73.0 million, from 68.8 million in the previous period while total takings were 49.3 million, a 5% increase from 46.7 million. Suku tahun berakhir 31 Mac 2005 menyaksikan Kumpulan mengurangkan lagi kepentingannya dalam Trenergy (Malaysia) Bhd kepada hanya 1.7%. Penjualan sebanyak 12 juta saham pada harga 3.20 sesaham di pasaran terbuka menghasilkan keuntungan terkecuali di peringkat Kumpulan berjumlah 9.72 juta. Di samping itu, sebagai sebahagian daripada langkah penyusunan semula syarikat induk, MTD Capital Berhad (MTD), Metacorp telah mencadangkan penjualan pelaburan dalam Metramac Corporation Sdn Bhd (Metramac) kepada MTD InfraPerdana Bhd (MTD Infra). Cadangan penjualan tersebut dijangka akan menghasilkan keuntungan sebanyak 70 juta di peringkat Syarikat tetapi kerugian kira-kira 4.7 juta di peringkat Kumpulan. PEMBANGUNAN HARTANAH Bahagian pembangunan hartanah terus merupakan penyumbang terbesar kepada hasil Kumpulan, dengan mencatatkan jualan berjumlah 55.5 juta, meningkat 53% daripada 36.4 juta pada Daripada jumlah tersebut, 48.7 juta diperolehi daripada hartanah kediaman dan komersial/perindustrian dan 6.87 juta daripada aktiviti penyewaan hartanah. Dengan lokasi Taman Tasik Utama (TTU) telah mencapai kematangan, dan disokong oleh program pemasaran dan promosi yang berterusan, TTU menikmati kadar pembelian yang tinggi bagi semua produk yang dilancarkan pada tempoh yang ditinjau. Pembangunan campuran terus menjadi pilihan di Melaka untuk tujuan peribadi mahupun pelaburan. Keadaan ini disokong oleh regim kadar faedah yang rendah dan kestabilan ekonomi yang terus meneguhkan keyakinan para pengguna terhadap pasaran hartanah. Walaupun produk hartanah kediaman kekal sebagai tonggak utama perniagaan, MPSB juga memanfaatkan setiap peluang untuk memasarkan hartanah komersial dan perindustriannya dengan memanfaatkan lokasi baru Pusat Perdagangan Antarabangsa Melaka (MITC) Kerajaan Negeri Melaka yang terletak di hadapan TTU dan juga lebuhraya Ayer Keroh Paya Rumput yang baru dibuka. Pendapatan berulang daripada penyewaan hartanah Kolej Universiti Teknikal Kebangsaan Malaysia (KUTKM) kekal stabil dan menjadi salah satu sumber tetap hasil bagi Kumpulan. Traffic on the East-West Link Expressway recorded an expressive 6.9% growth while the Kuala Lumpur-Seremban Expressway was slightly above forecast at 5%. 18 Metacorp Berhad \\ 2005 annual report

21 ENERGY Pendinginan Megajana Sdn Bhd (Megajana) saw revenue decline by 8% to 10.9 million compared with 11.9 million in This was attributable to slower take up from companies operating in Cyberjaya. QUARRYING On 18 January 2005, Dimensi Timal Sdn Bhd (DTSB) signed a concession agreement with the state government of Kelantan Darul Naim for the exclusive rights to undertake quarrying activities in Jedok, Tanah Merah, Kelantan. Under the 50-year concession, DTSB has the right to extract granite dimension stone within a 268-acre area with an estimated reserve of 600 million cubic metres. PROSPECTS As mentioned earlier, the hiving off of Metramac to MTD Infra will have a positive impact on the Company. On a Group basis, the loss of a steady income stream from toll operations will be felt. However, the Board is optimistic that any loss will be mitigated by improved performances from the remaining subsidiaries. With residential development continuing to be encouraging in the property sector, TTU will maintain its strategy of introducing a variety of products to cater to different income groups in the coming 12 months. An on-going marketing plan, combined with the development of products that reflect innovation will continue to add value to the Group s earnings in the new financial year. Similarly, the Melaka government s initiatives in the Ayer Keroh Corridor will have a positive ripple effect on TTU s efforts to market its commercial and industrial products. In addition the Group will see a full year contribution from its investment in Bangunan Shell which is expected to generate positive returns in view of it full tenancy. OPERASI KUTIPAN TOL Kutipan tol berkurangan kira-kira 37% kepada 49.4 juta berikutan kesan penuh daripada penamatan kutipan tol di Jalan Cheras dan Jalan Pahang. Walau bagaimanapun, hasil tol dan volum trafik di Lebuhraya Hubungan Timur Barat dan Lebuhraya Kuala Lumpur-Seremban terus menunjukkan arah aliran yang meningkat. Bagi tempoh 12 bulan berakhir 31 Mac 2005, jumlah volum trafik di kedua-dua lebuhraya tersebut bertambah 6% kepada 73.0 juta, daripada 68.8 juta pada tempoh yang lepas. Sementara itu, hasil pula meningkat sebanyak 5% daripada 46.7 juta kepada 49.3 juta. Trafik di Lebuhraya Hubungan Timur-Barat mencatatkan pertumbuhan membanggakan sebanyak 6.9% sementara Lebuhraya Kuala Lumpur-Seremban mencatatkan bilangan trafik lebih sedikit daripada ramalan iaitu 5%. TENAGA Hasil daripada Pendinginan Megajana Sdn Bhd (Megajana) berkurangan sebanyak 8% kepada 10.9 juta berbanding dengan 11.9 juta pada Keputusan ini disebabkan oleh kelembapan langganan oleh syarikat-syarikat di Cyberjaya. PERKUARIAN Pada 18 Januari 2005, Dimensi Timal Sdn Bhd (DTSB) telah menandatangani perjanjian konsesi dengan kerajaan negeri Kelantan Darul Naim bagi mendapat hak eksklusif menjalankan aktiviti perkuarian di Jedok, Tanah Merah, Kelantan. Di bawah konsesi selama 50 tahun itu, DTSB berhak mengeluarkan batu granit di kawasan seluas 268 ekar yang mempunyai rizab berjumlah 600 juta meter padu. PROSPEK Seperti yang dinyatakan sebelum ini, penjualan Metramac kepada MTD Infra akan memberi kesan positif kepada Syarikat. Di peringkat Kumpulan, kehilangan aliran pendapatan teguh daripada operasi pengutipan tol akan dirasai. Walau bagaimanapun, Lembaga Pengarah yakin bahawa sebarang kerugian akan diimbangi oleh prestasi yang bertambah baik daripada syarikat-syarikat subsidiari yang lain. Metacorp Berhad \\ 2005 annual report 19

22 group executive chairman s statement (cont d) penyata pengerusi eksekutif kumpulan (samb.) Following the directive from the Majlis Daerah Sepang (MDS) and Multimedia Development Corporation (MDC) for all buildings in Cyberjaya to use chilled water as a priority in their air-conditioning systems, new building owners are showing a preference for Megajana s services versus operating their own standalone system. This in turn, enhances Megajana s prospects as the demand for chilled water is expected to grow in tandem with the expansion of Cyberjaya s business community. The contract capacity for financial year 2006 is anticipated to increase to 7,471 Refrigerated Ton (RT), accounting for about 62% of plant capacity. Based on Cyberjaya s current development trend, the plant should reach its maximum capacity within the next two to three years. Whilst it is still early to determine the prospects of our quarrying operations, the government s call to use local products in all major construction projects bode well for DTSB s future as this presents an ideal opportunity for us to penetrate the local market. Besides a host of potential domestic customers, DTSB s strategy is to eventually offer the international market an option to the Italian granite Serrizo via a very competitive price structure. There has been limited progress on our joint venture company, E-Idaman Sdn Bhd as negotiations with the relevant authorities are still on-going. We however, are optimistic on the long term prospects of this privatisation and will continue to monitor the progress of this venture. While the economic outlook for Malaysia remains positive, external elements such as high crude oil prices and a slowdown in the global economy are expected to have an impact on Malaysia s overall performance in However, the government s decision to fast-forward some Ninth Malaysia Plan projects worth 2.4 billion, coupled with a resilient domestic market should see the economy expand at the forecasted 6%. Dengan pembangunan kediaman terus menggalakkan dalam sektor hartanah, TTU akan mengekalkan strateginya untuk memperkenalkan kepelbagaian produk untuk menepati keperluan kumpulan pelanggan yang mempunyai pendapatan yang berbeza-beza dalam tempoh 12 bulan akan datang. Satu pelan pemasaran, berserta dengan pembangunan produk yang menampilkan kekuatan ciri-ciri inovasi akan terus menambah nilai kepada pendapatan Kumpulan pada tahun kewangan yang baru. Inisiatif kerajaan Melaka berhubung Koridor Ayer Keroh juga akan memberi kesan positif terhadap usaha TTU untuk memasarkan produk komersial dan perindustriannya. Di samping itu, Kumpulan juga akan mendapat sumbangan satu tahun penuh daripada pelaburannya dalam Bangunan Shell yang dijangka akan memberi pulangan positif hasil daripada kadar sewaan penuh yang dicatatkan oleh hartanah tersebut. Sebagai mematuhi arahan daripada Majlis Daerah Sepang (MDS) dan Multimedia Development Corporation (MDC) supaya semua bangunan di Cyberjaya mengutamakan penggunaan air dingin dalam sistem pendingin udara mereka, ramai pemilik bangunan baru yang menunjukkan minat terhadap perkhidmatan Megajana berbanding menggunakan sistem operasi mereka sendiri. Keadaan ini mempertingkatkan prospek masa hadapan Megajana kerana permintaan terhadap air dingin dijangka akan bertambah selaras dengan perkembangan komuniti perniagaan di Cyberjaya. Kapasiti kontrak bagi tahun kewangan 2006 dijangka bertambah kepada 7,471 Refrigerated Ton (RT), yang mewakili kira-kira 62% daripada kapasiti loji. Berasaskan kepada arah aliran pembangunan Cyberjaya sekarang, loji tersebut dijangka akan mencapai kapasiti maksimum dalam tempoh dua hingga tiga tahun akan datang. Walaupun masih awal untuk menentukan prospek operasi perkuarian kita, namun seruan kerajaan untuk mempertingkatkan penggunaan produk tempatan dalam semua projek pembinaan utama memberi harapan yang cerah kepada masa depan DTSB kerana keadaan ini merupakan peluang yang baik untuk menembusi pasaran tempatan. Selain daripada beberapa pelanggan potensi dalam negeri, DTSB mempunyai pilihan dalam pasaran antarabangsa dengan menawarkan produknya kepada syarikat granit Itali Serrizo pada harga yang kompetitif. Syarikat usahasama kita, E-Idaman Sdn Bhd mencapai perkembangan yang agak terhad kerana perbincangan dengan pihak berkaitan sedang berlangsung. Walau bagaimanapun, kita yakin berhubung prospek jangka panjang langkah penswastaan ini dan akan terus memantau perkembangan usahaniaga ini. 20 Metacorp Berhad \\ 2005 annual report

23 Against this backdrop, your Board remains cautiously optimistic about the year ahead. Nevertheless, your Board is confident we have the resources and structure to capitalise on existing and new opportunities to enhance earnings and for the Group to expand its influence at the domestic front and overseas in the mid to long-term in its respective business areas. THANKS AND APPRECIATION On behalf of the Board, I wish to express our heartfelt thanks and appreciation to you, our valued shareholders, for your continued support and confidence in Metacorp. I would also like to take this opportunity to thank YBhg. Dato Mustaffa b. Mohd, who resigned as Independent Non- Executive Director on 16 June 2005, for his services rendered. Thanks must also go to the relevant authorities for their continued guidance and to our suppliers and business partners for their unwavering support. To the management and staff, your contributions and commitment to the Group s continued success is greatly appreciated. Thank you. Walaupun suasana ekonomi Malaysia kekal positif, elemen luaran seperti harga minyak mentah yang tinggi dan kelembapan ekonomi global dijangka akan memberi kesan terhadap prestasi keseluruhan Malaysia pada tahun Namun, keputusan Kerajaan untuk mempercepatkan pelaksanaan projek-projek di bawah Rancangan Malaysia Kesembilan bernilai 2.4 bilion, serta disokong oleh pasaran domestik yang berdaya tahan dijangka akan membolehkan ekonomi berkembang pada kadar 6% seperti yang diramalkan. Berasaskan keadaan ini, Lembaga Pengarah anda kekal yakin dan berhati-hati berhubung prospek tahun hadapan. Namun, Lembaga Pengarah anda yakin bahawa kita mempunyai sumber dan struktur untuk memanfaatkan peluang yang sedia ada dan juga peluang baru bagi mempertingkatkan pendapatan dan membolehkan Kumpulan meluaskan pengaruhnya di peringkat domestik dan luar negeri dalam jangka masa sederhana hingga jangka masa panjang dalam bidang-bidang perniagaan yang diceburinya. TERIMA KASIH DAN PENGHARGAAN Bagi pihak Lembaga Pengarah, saya ingin mengucapkan setinggi-tinggi terima kasih dan penghargaan kepada anda sekalian, para pemegang saham kami, atas sokongan dan keyakinan berterusan anda terhadap Metacorp. Saya juga ingin mengambil kesempatan ini untuk mengucapkan terima kasih kepada YBhg. Dato Mustaffa b. Mohd yang meletak jawatan sebagai Pengarah Bukan Eksekutif Bebas pada 16 Jun Ucapan terima kasih ini juga ingin disampaikan kepada pihak berkuasa berkaitan atas bimbingan berterusan mereka dan rakan perniagaan kita atas sokongan padu mereka selama ini. Kumpulan juga amat menghargai pihak pengurusan dan kakitangan yang menampilkan sumbangan dan komitmen tidak berbelah-bahagi untuk membolehkan Kumpulan mencapai kejayaan. Terima kasih. DATO DR NIK HUSSAIN BIN ABDUL RAHMAN Group Executive Chairman / Pengerusi Eksekutif Kumpulan Metacorp Berhad \\ 2005 annual report 21

24 operations review tinjauan operasi PROPERTY DEVELOPMENT For financial year ended 31 March 2005, Metacorp Properties Sdn Bhd (MPSB) achieved a gross sales value of 65.8 million on the back of 714 units sold at its Taman Tasik Utama (TTU), Ayer Keroh, Melaka development. The products were from on-going and three new phases and comprised low-cost apartments and bungalows, doublestorey shop offices and industrial lots. Due for completion in financial year 2006, 82% of the ongoing phases comprising 578 units and with a sales value of 69.1 million have been sold. For the three new phases of 400 low-cost apartments, 97 single-storey terraced houses and 73 double-storey shop offices and which have a total sales value of 41.9 million, 419 units, or 74% have been taken up as at 31 March The encouraging take-up rate for TTU can be attributed to the maturity of the location and an aggressive marketing campaign supported by show houses to enhance market awareness. Active promotional programmes such as launch PEMBANGUNAN HARTANAH Bagi tahun kewangan berakhir 31 Mac 2005, Metacorp Properties Sdn Bhd (MPSB) mencapai jualan kasar bernilai 65.8 juta daripada 714 unit yang dijual di pembangunan Taman Tasik Utama (TTU), Ayer Keroh, Melaka. Produkproduk tersebut adalah daripada pembangunan dalam fasa pembinaan dan tiga fasa baru yang meliputi pangsapuri kos rendah dan banglo, pejabat kedai dua tingkat dan lot perindustrian. Sebanyak 82% daripada projek sedang dalam fasa pembinaan meliputi 578 unit yang dijadualkan siap pada tahun kewangan 2006, dengan nilai jualan sebanyak 69.1 juta telah berjaya dijual sehinggga akhir tahun yang ditinjau. Bagi tiga fasa baru yang meliputi 400 unit pangsapuri kos rendah, 97 rumah teres satu tingkat dan 73 pejabat kedai dua tingkat dan mempunyai jumlah jualan sebanyak 41.9 juta, sebanyak 419 unit atau 74% telah dibeli sehingga 31 Mac Kadar pembelian TTU yang menggalakkan boleh dikaitkan dengan kematangan lokasi dan kempen pemasaran agresif s disokong oleh rumah contoh untuk meninggikan lagi tahap kesedaran. Program promosi yang aktif seperti pelancaran pangsapuri kos rendah oleh Ketua Menteri Melaka, berserta dengan beberapa pertunjukan bergerak dan usaha jualan di

25 of the low-cost apartments by the Chief Minister of Melaka, coupled with numerous road shows and sales efforts throughout the year provided occasions for several successful sales campaigns. Furthermore, MPSB has built up a reputation as a developer of innovative and functional products of acceptable quality and for timely delivery. The next 12 months will see the introduction of more singlestorey terraced houses, double- storey semi-detached linked houses (cluster homes) and double-storey semi-detached homes in prime locations and priced above 100,000, as well as additional low-cost and low medium-cost apartments. This year will see a full year contribution from our investment in Shell building. Returns are expected to be reasonable in view of its full occupancy and 9-year lease agreement with existing tenants. As mentioned by the Group Executive Chairman, the Group has taken its first step abroad with the incorporation of wholly-owned subsidiary Metacorp Australia Pty Ltd (MAPL). The company has since proposed to acquire a 50% stake in Whitsundays Hermitage Pty Ltd (WHPL), a construction and property development outfit that is currently developing the Blue Horizon Resort Apartments on Airlie Beach, Queensland, Australia. sepanjang tahun ini menghasilkan beberapa kejayaan kempen jualan. Selain itu, MPSB berjaya membina reputasi sebagai sebuah pemaju produk yang inovatif dan sesuai dan mempunyai kualiti yang baik dan penyerahan yang menepati masa. Tempoh 12 bulan akan datang bakal menyaksikan pelancaran rumah teres setingkat, rumah berangkai berkembar (kediaman bersambungan) dan kediaman berkembar dua tingkat di lokasi prima, berharga lebih 100,000 di samping pangsapuri kos rendah dan kos sederhana tambahan. Tahun ini akan menyaksikan sumbangan setahun penuh daripada pelaburan kami dalam Bangunan Shell. Pulangan dijangka memuaskan berasaskan kepada penyewaan penuh dan perjanjian pajakan selama 9 tahun dengan penyewa sedia ada. Seperti yang dinyatakan oleh Pengerusi Eksekutif Kumpulan, Kumpulan telah mengorak langkah ke luar negeri dengan perbadanan syarikat subsidiari milik penuh yang dikenali sebagai Metacorp Australia Pty Ltd (MAPL). Syarikat ini telah mengambilalih 50% kepentingan dalam Whitsundays Hermitage Pty Ltd (WHPL), sebuah syarikat pembinaan dan pembangunan hartanah yang sedang membangunkan Pangsapuri Peranginan Blue Horizon di Airlie Beach, Queensland, Australia. Metacorp Berhad \\ 2005 annual report 23

26 operations review (cont d) tinjauan operasi (samb.) TOLL OPERATIONS For the 12 months ended 31 March 2005, total traffic volume on the two expressways was up 6% to 73.0 million, from 68.8 million in the previous period while total takings were 49.3 million, a 5% increase from 46.7 million. The East-West Link Expressway s growth was 6% and for the Kuala Lumpur-Seremban Expressway, 5%. The uptrend in traffic volume on the East West Link Expressway can be attributed to improvement works being carried out in the Cheras area that entails the construction of a new interchange at Taman Segar and road-widening works at Jalan Loke Yew. To bypass the traffic congestion along Jalan Cheras, many motorists have diverted to the East-West Link Expressway. The construction works, which commenced in late 2003, are expected to be completed in over the next 2 years. OPERASI KUTIPAN TOL Bagi tempoh 12 bulan berakhir 31 Mac 2005, jumlah volum trafik di kedua-dua lebuhraya kami meningkat 6%, daripada 68.8 juta pada tempoh sebelum ini kepada 73.0 juta. Hasil yang dicapai berjumlah 49.3 juta, bertambah 5% daripada 46.7 juta tahun lepas. Lebuhraya Hubungan Timur-Barat menampilkan pertumbuhan sebanyak 6% sementara Lebuhraya Kuala Lumpur-Seremban, 5%. Peningkatan dalam volum trafik di Lebuhraya Hubungan Timur-Barat boleh dikaitkan dengan kerja peningkatan yang dijalankan di kawasan Cheras yang meliputi pembinaan sebuah persimpangan bertingkat di Taman Segar dan kerja meluaskan jalan di Jalan Loke Yew. Bagi mengelakkan kesesakan lalulintas di sepanjang Jalan Cheras, ramai pemandu menukar laluan mereka ke Lebuhraya Hubungan Timur-Barat. Kerja-kerja pembinaan, yang bermula pada penghujung tahun 2003, dijangka akan siap dalam tempoh 2 tahun akan datang. 24 Metacorp Berhad \\ 2005 annual report

27 Improved traffic volume on the Kuala Lumpur-Seremban Expressway is due in part to the reported good sales of motor vehicles and is in line with Halcrow Consultants Sdn Bhd s forecast for Projek Lebuhraya Utara-Selatan Bhd (PLUS) of an average increase in traffic between 2002 and 2006 of 5% per annum. Last but not least, the better economic outlook has seen a return of casual traffic as motorists with a higher disposable income indulge in more travelling. On 1 July 2004, Touch n Go became the sole electronic toll collection (ETC) system for all toll roads in the country. On our two toll roads, where smartcard sales and usage have been increasing steadily since Touch n Go s inception in 1997, two SmartTag lanes; one on each toll road, were installed and became operational in April 2005, as part of the nationwide ETC implementation process. As a responsible highway operator, we participated in the Malaysian Highway Authority s five-month Customer Satisfaction Index Survey launched in June The study was carried out in line with the authority s aim of providing excellent service to all highway users. Volum trafik yang semakin bertambah di Lebuhraya Kuala Lumpur-Seremban sebahagiannya disebabkan oleh jualan kenderaan bermotor yang menggalakkan dan selaras dengan kajian Halcrow Consultants Sdn Bhd yang meramalkan peningkatan purata trafik di Projek Lebuhraya Utara-Selatan Bhd (PLUS) antara tahun 2002 dan 2006 sebanyak 5% setahun. Selain itu, keadaan ekonomi yang lebih baik menyaksikan trafik pulih kepada tahap biasa kerana pengguna lebuhraya yang mempunyai pendapatan boleh belanja lebih tinggi tidak teragak-agak untuk menggunakan lebuhraya dengan lebih kerap. Pada 1 Julai 2004, Touch n Go menjadi sistem kutipan tol elektronik (ETC) tunggal bagi semua jalanraya bertol di negara ini. Di kedua-dua jalanraya bertol kami, di mana jualan dan penggunaan Touch n Go mencatat peningkatan kukuh sejak pengenalannya pada tahun 1997, dua lorong SmartTag; satu di setiap jalanraya bertol, telah dipasang dan mula beroperasi pada bulan April 2005, sebagai sebahagian daripada proses pelaksanaan ETC di seluruh negara. Sebagai pengendali lebuhraya bertol yang bertanggungjawab, kami telah mengambil bahagian dalam Kaji Selidik Indeks Kepuasan Pelanggan selama lima bulan yang dilaksanakan oleh Lembaga Lebuhraya Malaysia bermula pada bulan Jun Kajian tersebut dijalankan sejajar dengan matlamat lembaga untuk menyediakan perkhidmatan yang cemerlang kepada semua pengguna lebuhraya. Metacorp Berhad \\ 2005 annual report 25

28 operations review (cont d) tinjauan operasi (samb.) ENERGY Pendinginan Megajana Sdn Bhd (Megajana) added a new building to its client list, bringing the numbers to 16 for the year in review. With this, the contract capacity for subscribed chilled water increased accordingly, from 5,525 Refrigerated Ton (RT) to 6,011 RT. In June 2004, plant capacity was upgraded to 12,000 RT following the commissioning of two units of 1,800 RT ice chillers and Thermal Energy Storage (TES). Despite some technical hitches during pipe-laying on the MEASAT 3 Control Centre project, Megajana managed to overcome the problems and supply of chilled water to the TENAGA Pendinginan Megajana Sdn Bhd (Megajana) menambah sebuah lagi bangunan baru ke dalam senarai pelanggannya, menjadikan bilangan pelanggannya pada tahun yang dtinjau 16 kesemuanya. Justeru, kapasiti kontrak bagi air dingin yang dilanggan meningkat iaitu daripada 5,525 Refrigerated Ton (RT) kepada 6,011 RT. Pada bulan Jun 2004, kapasiti loji telah dinaiktaraf kepada 12,000 RT berikutan permulaan operasi dua unit pendingin ais 1,800 RT dan Penstoran Tenaga Termal (TES). Walaupun berhadapan dengan beberapa masalah kecil dari segi teknikal semasa pemasangan paip untuk projek Pusat Kawalan MEASAT 3, Megajana berjaya mengatasi masalah tersebut dan pembekalan air dingin kepada pusat berkenaan 26 Metacorp Berhad \\ 2005 annual report

29 centre is now scheduled to be commissioned in April Although the contract capacity is for 550 RT, this is expected to increase to 700 RT by June With support from the local authorities and Multimedia Development Corporation (MDC), and an aggressive marketing programme, new building owners in Cyberjaya are now more receptive to the option of using Megajana s chilled water instead of running their own standalone system. By the end of current financial year, Megajana s contract capacity is expected to increase to 7,471 RT or about 62% of plant capacity. Based on the current trend of development in Cyberjaya, we anticipate plant capacity to reach its maximum by 2007/2008. dijadual akan bermula pada bulan April Walaupun kapasiti kontrak sebanyak 550 RT sahaja, namun kapasiti tersebut dijangka akan bertambah kepada 700 RT menjelang bulan Jun Hasil sokongan pihak berkuasa tempatan dan Multimedia Development Corporation (MDC), serta usaha pemasaran yang agresif, para pemilik bangunan baru di Cyberjaya kini lebih tertarik untuk mempertimbangkan pilihan menggunakan air dingin Megajana berbanding mengendalikan sistem mereka sendiri. Menjelang akhir tahun kewangan semasa, kapasiti kontrak Megajana dijangka akan meningkat kepada 7,471 RT atau kira-kira 62% daripada kapasiti loji. Berasaskan kepada arah aliran pembangunan semasa di Cyberjaya, kami menjangka kapasiti loji akan mencapai tahap maksimum pada 2007/2008. Metacorp Berhad \\ 2005 annual report 27

30 operations review (cont d) tinjauan operasi (samb.) QUARRYING Our quarrying operation arm, Dimensi Timal Sdn Bhd (DTSB) signed a 50-year concession agreement with the Kelantan Darul Naim state government for the exclusive rights to undertake quarrying activities in Jedok, Tanah Merah, Kelantan. The concession area of approximately 268 acres is one kilometre south of the East-West Highway and has an estimated reserve of 600 million cubic metres (cu m), or 1.5 billion metric tonnes of monolithic mother rock. Being a natural building material much sought after for its texture, tonality, durability and strength, DTSB s granite has unique characteristics of coarse-grained texture and bluish black tonality. This export grade granite has a distinct texture and consistency in colour and pattern, and many similarities with Italy s Serrizo granite. A growing demand for dimension stone granite, both domestically and globally, bodes well for DTSB s prospects. In the first year of production, DTSB plans to extract approximately 2,500 cu m, gradually increasing to 7,200 cu m by year four. Site-clearing work, preparation of access road and platforms began in March 2005 and actual quarrying activity is expected to start in August 2005 with the maiden primary block anticipated to be out in the same month. PERKUARIAN Operasi kuari kami, Dimensi Timal Sdn Bhd (DTSB) telah menandatangani perjanjian konsesi 50 tahun dengan kerajaan negeri Kelantan Darul Naim bagi mendapatkan hak eksklusif untuk menjalankan aktiviti perkuarian di Jedok, Tanah Merah, Kelantan. Kawasan konsesi yang seluas lebih kurang 268 ekar terletak kira-kira satu kilometer ke selatan Lebuhraya Timur-Barat. Kawasan tersebut mempunyai rizab yang dianggarkan berjumlah 600 juta meter padu, atau 1.5 bilion tan metrik batu keras monolithic. Granit DTSB adalah bahan binaan bangunan semulajadi yang sangat sesuai kerana tekstur, warna, daya tahan dan kekuatannya. Ia juga mempunyai ciri-ciri unik iaitu tekstur berira kasar dan berwarna hitam kebiruan. Granit bergred eksport ini mempunyai tekstur istimewa dan warna serta corak yang konsisten, yang mempunyai banyak persamaan dengan granit Serrizo dari Itali. Permintaan yang semakin meningkat bagi batu granit ini di pasaran domestik dan juga global, menyediakan prospek yang menarik bagi DTSB. Pada tahun pertama pengeluarannya, DTSB merancang untuk mengeluarkan lebih kurang 2,500 meter padu, dan secara beransur-ansur meningkat kepada 7,200 meter padu pada tahun ke-empat. Kerja pembersihan tapak kuari telah bermula pada bulan Mac 2005 dengan blok pertama dijangka akan dikeluarkan dalam bulan yang sama. 28 Metacorp Berhad \\ 2005 annual report

31 CORPORATE SOCIAL RESPONSIBILITY The year in review saw the toll division involved in a host of community-related activities. During Ramadhan, Muslim road users were hosted to buka puasa and terawih prayers at several mosques within the concession areas while kurma packs were handed out to those who could not make it home in time for the breaking of fast. And Malaysia s multiracial diversity was celebrated with the distribution of goodies to motorists as a gesture of goodwill and appreciation during the Hari Raya Aidil-Fitri, Deepavali and Chinese New Year holidays. For the country s 47th birthday, we celebrated with the distribution of Jalur Gemilang flags to motorists, to engender greater national pride in all Malaysians. TANGGUNGJAWAB SOSIAL KORPORAT Tahun yang ditinjau menyaksikan bahagian tol terlibat dalam beberapa aktiviti yang berkaitan dengan kemasyarakatan. Semasa bulan Ramadhan, para pengguna beragama Islam diraikan di majlis berbuka puasa dan solat tarawih di beberapa buah masjid di kawasan konsesi. Selain itu, bungkusan buah kurma juga disumbangkan kepada mereka yang tidak sempat berbuka puasa di rumah. Bahagian ini juga menyampaikan pelbagai buah tangan kepada pengguna lebuhraya sebagai lambang semangat muhibah dan menghargai perpaduan kaum di Malaysia semasa cuti sambutan Hari Raya Aidil-Fitri, Deepavali dan tahun Baru Cina. Kami juga telah mengagihkan Jalur Gemilang kepada pengguna lebuhraya untuk menyemarakkan sambutan Kemerdekaan Negara ke 47, demi menyuburkan semangat cinta negara di kalangan rakyat Malaysia. DATO AZMIL KHALILI BIN DATO KHALID Group Managing Director / Pengarah Urusan Kumpulan Metacorp Berhad \\ 2005 annual report 29

32 analysis of shareholdings as at 26 July 2005 Authorised Share Capital : 500,000,000 Issued and Paid-Up Share Capital : 339,637,665 Class of Shares : Ordinary Shares of 0.50 each Voting Rights : One vote per ordinary share No. of Shareholders : 5,182 DISTRIBUTION OF SHAREHOLDINGS AS AT 26 JULY 2005 No. of Shareholders No. of Shares Percentage(%) Size of Shareholdings Malaysian Foreign Malaysian Foreign Malaysian Foreign Less than , , ,001-10,000 2, ,341, , , ,000 2, ,146,806 1,542, ,001 to less than 5% ,292,896 7,942, of issued shares 5% and above of issued shares ,803, Total 5, ,649,632 9,625, SUBSTANTIAL SHAREHOLDERS AS AT 26 JULY 2005 Direct Interest Indirect Interest Shareholders No. of Shares % No. of Shares % Lambang Simfoni Sdn Bhd 503,803, MTD Capital Bhd 5,573, ,803,878 (1) Alloy Consolidated Sdn Bhd ,377,778 (2) Nikvest Sdn Bhd ,377,778 (2) Dato Dr. Nik Hussain bin Abdul Rahman 480, ,377,778 (3) Datin Nik Fuziah binti Dato Nik Hussein ,377,778 (4) Mohd Dom Ahmad ,377,778 (4) Ruslan Sulaiman ,377,778 (4) Nik Fauzi bin Dato Nik Hussein ,377,778 (5) Nik Faizul bin Dato Nik Hussain ,377,778 (5) Note : (1) Deemed interested through Lambang Simfoni Sdn Bhd, its wholly-owned subsidiary. (2) Deemed interested through MTD Capital Bhd. (3) Deemed interested by virtue of his spouse s shareholdings in MTD Capital Bhd, his and his children s shareholdings in Nikvest Sdn Bhd, a substantial shareholder of MTD Capital Bhd. (4) Deemed interested through Alloy Consolidated Sdn Bhd, a substantial shareholder of MTD Capital Bhd. (5) Deemed interested through Nikvest Sdn Bhd, a substantial shareholder of MTD Capital Bhd. DIRECTOR S SHAREHOLDINGS AS AT 26 JULY 2005 Direct Interest Indirect Interest Directors No. of Shares % No. of Shares % Dato Dr. Nik Hussain bin Abdul Rahman 480, ,377,778 (1) Dato Nik Hassan bin Abdul Rahman 360, Note : (1) Deemed interested by virtue of his spouse s shareholdings in MTD Capital Bhd, his and his children s shareholdings in Nikvest Sdn Bhd, a substantial shareholder of MTD Capital Bhd. 30 Metacorp Berhad \\ 2005 annual report

33 analysis of shareholdings as at 26 July 2005 THIRTY LARGEST SHAREHOLDERS (AS AT 26 JULY 2005) No. Shareholders No. of Shares % 1 LAMBANG SIMFONI SDN BHD 503,803, PEODALAN NASIONAL BERHAD 19,806, AMMB NOMINEES (TEMPATAN) SDN BHD 13,886, AMTRUSTEE BERHAD FOR HLG PENNY STOCK FUND 4 EMPLOYEES PROVIDENT FUND BOARD 11,966, MTD CAPITAL BHD 5,573, UOBM NOMINEES (ASING) SDN BHD 5,400, SOCIETE GENERALE SINGAPORE FOR PANERAI CORPORATE LTD 7 HSBC NOMINEES (TEMPATAN) SDN BHD 5,288, HSBC (MALAYSIA) TRUSTEE BERHAD FOR AMANAH SAHAM SARAWAK 8 MANULIFE INSURANCE (MALAYSIA) BERHAD 2,970, PRB NOMINEES (TEMPATAN) SDN. BHD. 2,520, RUBBER INDUSTRY SMALLHOLDERS DEVELOPMENT AUTHORITY 10 AMANAH RAYA NOMINEES (TEMPATAN) SDN BHD 1,874, MAYBAN DANA YAKIN 11 BUMIPUTRA-COMMERCE TRUSTEE BERHAD 1,801, AMANAH SAHAM DARUL IMAN 12 AMANAH RAYA NOMINEES (TEMPATAN) SDN BHD 1,300, MAYBAN DANA IKHLAS 13 YEOH KEAN HUA 900, ZULKIFLY BIN RAFIQUE 840, TC PARKING SDN BHD 799, RHB NOMINEES (TEMPATAN) SDN BHD 700, PLEDGED SECURITIES ACCOUNT FOR LIM SIEW LIAN 17 UNITED OVERSEAS NOMINEES (TEMPATAN) SDN BHD 600, PLEDGED SECURITIES ACCOUNT FOR MENG LENG YIT HOONG 18 HLG NOMINEE (ASING) SDN BHD 600, IBB SECURITIES SDN BHD 19 HLB NOMINEES (TEMPATAN) SDN BHD 600, PLEDGED SECURITIES ACCOUNT FOR CHONG HAN PENG 20 CHAN KOK CHYE 540, UNITED OVERSEAS NOMINEES (TEMPATAN) SDN BHD 500, PLEDGED SECURITIES ACCOUNT FOR LEE YIH LEANG 22 HSBC NOMINEES (ASING) SDN BHD 500, SKYLIGHT ASSETS LIMITED 23 CIMSEC NOMINEES (TEMPATAN) SDN BHD 494, CIMB FOR CHOO KIM FOONG 24 SYED ALI ALJFFRI BIN SYED JAN ALJFFRI 480, NIK HUSSAIN BIN ABDUL RAHMAN 480, MAYBAN SECURITIES NOMINEES (TEMPATAN) SDN BHD 480, PLEDGED SECURITIES ACCOUNT FOR AZIMAH BINTI AIYUB GHAZALI 27 HARDEEP SINGH A/L SAJAN SINGH 480, LIM SHIU HO 459, SAWIRA SDN BHD 450, TAN KEAT HOON 408, Total 586,502, Metacorp Berhad \\ 2005 annual report 31

34 financial statements 33\\Directors Report 39\\Statement by Directors 39\\Statutory Declaration 40\\Report of the Auditors 41\\Income Statements 42\\Balance Sheets 44\\Statement of Changes in Equity 45\\Consolidated cash flow statement 47\\Cash Flow Statements 48\\Notes to the Financial Statements 32 Metacorp Berhad \\ 2005 annual report