DIRECTORS REPORT AND FINANCIAL STATEMENTS 31 AUGUST 2001 Directors Report 2-5 Income Statements 6 Balance Sheets 7-8 Statement Of Changes in Equity 9-10 Cash Flow Statements 11-13 Notes to the Financial Statements 14-50 Statement by Directors 51 Statutory Declaration 52 Auditors Report to the Members of Tenaga Nasional Berhad 53 1
DIRECTORS REPORT The Directors have pleasure in submitting their Report with the audited financial statements of the and of the for the financial year ended 31 August 2001. PRINCIPAL ACTIVITIES The principal activities of the are the generation, transmission, distribution and sale of electricity. The principal activities of the subsidiaries and associates are described in Note 13 and 14 respectively to the financial statements. There have been no significant changes in these activities during the financial year. FINANCIAL RESULTS RM million RM million Profit after taxation 2,070.2 2,468.1 Minority interests 34.8 - Profit attributable to shareholders 2,105.0 2,468.1 DIVIDENDS The dividends paid or declared since 31 August 2000 were as follows: In respect of the financial year ended 31 August 2000, as shown in the Directors Report for that financial year: RM million Final dividend of 7 sen gross per ordinary share less income tax at 28%, paid on 18 January 2001 156.6 In respect of the financial year ended 31 August 2001: Interim dividend of 4 sen gross per ordinary share less income tax at 28%, paid on 5 July 2001 89.5 The Directors now recommend the payment of a final dividend of 4.3 sen gross per ordinary share, tax exempt, amounting to RM133.6 million which, subject to the approval of the shareholders at the forthcoming Annual General Meeting of the, will be paid on 16 January 2002 to shareholders registered on the s Register of Members at the close of business on 26 December 2001. RESERVES AND PROVISIONS Material transfers to or from reserves and provisions during the financial year are shown in the financial statements. SHARE CAPITAL During the financial year, 559,000 new ordinary shares of RM1.00 each were issued by the for cash by virtue of the exercise of options pursuant to the s Employee Share Option Scheme ( ESOS ) at the following issue prices: Number of ordinary shares of RM1.00 each Issue price (RM) Proceeds (RM) 226,000 7.92 1,789,920 60,000 7.06 423,600 273,000 5.13 1,400,490 559,000 3,614,010 The new shares rank pari passu in all respects with the existing ordinary shares of the. 2
DIRECTORS REPORT (CONTINUED) SHARE CAPITAL (CONTINUED) At the Extraordinary General Meeting held on 31 July 2001, a resolution was passed for the creation of 1,000 Class A and 500 Class B Redeemable Preference Shares ( RPS ) of RM1.00 each. On 16 August 2001, 1,000 Class A RPS of RM1.00 each at an issue price of RM1,000 per RPS were issued, for cash, by the for the purpose of financing the s capital expenditure. As described in Note 29 to the financial statements, these RPS were issued pursuant to the offering of the s Fixed Income Securities. EMPLOYEE SHARE OPTION SCHEME Options under the ESOS were granted to eligible Directors, employees and retirees of the to subscribe for ordinary shares of RM1.00 each. The first ESOS was exercisable on specific days during the period commencing 5 June 1993, but not later than thirty days before 11 May 1997, as determined by the by-laws of the ESOS. At an Extraordinary General Meeting held on 6 June 1996, the shareholders approved the extension of the ESOS for a further five years to expire on 11 May 2002. The movement during the financial year in the number of options over the shares of the are as follows: No. of options over ordinary shares of RM1.00 each Option price As at As at RM per share 1.9.2000 Granted Exercised 31.8.2001 Expiry date 11.61 2,704,000 - - 2,704,000 11 May 2002 9.03-3,322,000-3,322,000 11 May 2002 7.92 1,268,000 45,000 (226,000) 1,087,000 11 May 2002 7.06 120,000 - (60,000) 60,000 11 May 2002 5.13 732,000 30,000 (273,000) 489,000 11 May 2002 4,824,000 3,397,000 (559,000) 7,662,000 The exercise price is determined based on the average price for five preceding market days prior to the date of the offer. For the purpose of establishing the average price, the closing buy and sell price quotation of the ordinary shares of the as quoted and shown in the daily official list issued by the Kuala Lumpur Stock Exchange is used. The persons to whom the options have been granted under the ESOS have no right to participate in any share option scheme of any other company by virtue of these options. The has been granted exemption by the Registrar of Companies from having to disclose the list of option holders and their holdings. 3
DIRECTORS REPORT (CONTINUED) DIRECTORS The Directors who have held office during the period since the date of the last Report are: Dato Dr Jamaludin bin Dato Mohd Jarjis Pian bin Sukro @ Sukoro Datuk Zainun Aishah binti Ahmad Dato Lau Yin Pin @ Lau Yen Beng Tan Sri Dato Chan Choong Tack @ Chan Choong Tak Dato Hari Narayanan a/l Govindasamy Dato Mohd Yusof bin Ibrahim Husniarti binti Tamin Kamariah binti Hussain (Chairman) (President/Chief Executive Officer) (Appointed on 16.10.2001) (Alternate Director to Husniarti binti Tamin) Dato Dr Halim bin Shafie (Appointed on 1.2.2001) Dato Syed Hamzah bin Syed Othman (Appointed on 7.2.2001 as Alternate Director to Dato Dr Halim bin Shafie) (Resigned on 1.2.2001 as Alternate Director to Tan Sri Nuraizah binti Abdul Hamid) Dato Hamzah bin Bakar (Appointed on 18.4.2001) Dato Iskandar Dzakurnain bin Badarudin (Appointed on 14.5.2001) Raja Dato Zaharaton binti Raja Zainal Abidin Shaziman bin Abu Mansor (Appointed on 16.10.2001) Dato Megat Abdul Rahman bin Megat Ahmad (Resigned on 1.1.2001) Tan Sri Nuraizah binti Abdul Hamid (Resigned on 1.2.2001) Mokatar Rudin bin Wan Yusof (Resigned on 26.4.2001) Dato Fuad bin Jaafar (Resigned on 15.10.2001) (Appointed on 30.7.2001 as Alternate Director to Dato Iskandar Dzakurnain bin Badarudin) In accordance with Article 133 of the s Articles of Association, Dato Dr Halim bin Shafie, Dato Hamzah bin Bakar, Dato Iskandar Dzakurnain bin Badarudin, Pian bin Sukro @ Sukoro and Shaziman bin Abu Mansor retire at the forthcoming Annual General Meeting and being eligible, offer themselves for election. In accordance with Article 135 of the s Articles of Association, Datuk Zainun Aishah binti Ahmad and Dato Lau Yin Pin @ Lau Yen Beng retire at the forthcoming Annual General Meeting and being eligible, offer themselves for re-election. Government appointed Directors as at the date of this Report are: Dato Dr Jamaludin bin Dato Mohd Jarjis Datuk Zainun Aishah binti Ahmad Husniarti binti Tamin Dato Dr Halim bin Shafie (Appointed on 1.2.2001) Dato Iskandar Dzakurnain bin Badarudin (Appointed on 14.5.2001) Pian bin Sukro @ Sukoro (Appointed on 16.10.2001) DIRECTORS BENEFITS During and at the end of the financial year, no arrangements subsisted to which the is a party, being arrangements with the object or objects of enabling Directors of the to acquire benefits by means of the acquisition of shares in or debentures of the or any other body corporate, except for options granted to Directors pursuant to the ESOS. Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than benefits disclosed as Directors remuneration and benefits in Note 4 to the financial statements) by reason of a contract made by the or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest. DIRECTORS INTERESTS IN SHARES According to the Register of Directors shareholdings, the interests of Directors in office as at the end of the financial year in shares in the were as follows: Number of ordinary shares of RM1.00 each Tenaga Nasional Berhad As at As at 1.9.2000 Acquired Disposed 31.8.2001 Dato Lau Yin Pin @ Lau Yen Beng 10,000 - (10,000) - Dato Fuad bin Jaafar 72,000 - - 72,000 Dato Mohd Yusof bin Ibrahim 49,000 - - 49,000 No other Directors in office at the end of the financial year held any interest in shares of the and its related corporations. 4
DIRECTORS REPORT (CONTINUED) STATUTORY INFORMATION ON THE FINANCIAL STATEMENTS Before the income statements and balance sheets of the and of the were made out, the Directors took reasonable steps: (a) (b) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business their values as shown in the accounting records of the and of the had been written down to an amount which they might be expected so to realise. At the date of this Report, the Directors are not aware of any circumstances: (a) (b) (c) which would render the amounts written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of the and of the inadequate to any substantial extent; or which would render the values attributed to current assets in the financial statements of the and of the misleading; or which have arisen which render adherence to the existing method of valuation of assets or liabilities of the and of the misleading or inappropriate. No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the or of the to meet their obligations when they fall due. At the date of this Report, there does not exist: (a) (b) any charge on the assets of the and of the which has arisen since the end of the financial year which secures the liability of any other person; or any contingent liability of the and of the which has arisen since the end of the financial year. OTHER STATUTORY INFORMATION At the date of this Report, the Directors are not aware of any circumstances not otherwise dealt with in this Report or the financial statements which would render any amount stated in the financial statements misleading. In the opinion of the Directors: (a) (b) except as disclosed in Note 6 to the financial statements, the results of the s and of the s operations during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature; and except as disclosed in Note 37 to the financial statements, there has not arisen in the interval between the end of the financial year and the date of this Report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the or of the for the financial year in which this Report is made. AUDITORS The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office. Signed on behalf of the Board of Directors, in accordance with their resolution dated 7 November 2001. DATO DR JAMALUDIN BIN DATO MOHD JARJIS CHAIRMAN PIAN BIN SUKRO @ SUKORO PRESIDENT/CHIEF EXECUTIVE OFFICER 5
INCOME STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2001 Note 2001 2000 2001 2000 REVENUE 3 14,362.6 13,719.1 13,685.0 12,997.8 Operating expenses 4 (11,919.8) (10,965.0) (12,376.7) (11,164.1) Other operating income 5 349.6 481.7 1,541.7 1,379.0 OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS 2,792.4 3,235.8 2,850.0 3,212.7 Exceptional items 6 (373.7) (332.4) (123.7) - OPERATING PROFIT AFTER EXCEPTIONAL ITEMS 2,418.7 2,903.4 2,726.3 3,212.7 Foreign exchange gain/(loss) 7 785.5 (371.1) 846.2 (391.7) Share of results of associates 14 125.2 107.0 - - PROFIT BEFORE FINANCE COST 3,329.4 2,639.3 3,572.5 2,821.0 Finance cost 8 (1,136.4) (1,115.5) (1,122.7) (1,101.1) PROFIT BEFORE TAXATION 2,193.0 1,523.8 2,449.8 1,719.9 Taxation - and subsidiaries 9 (83.8) (204.5) 18.3 (146.5) - Share of taxes in associates 14 (39.0) (26.0) - - PROFIT AFTER TAXATION 2,070.2 1,293.3 2,468.1 1,573.4 Minority interests 34.8 39.5 - - PROFIT ATTRIBUTABLE TO SHAREHOLDERS 2,105.0 1,332.8 2,468.1 1,573.4 Sen Sen Earnings per share - basic 10(a) 67.8 42.9 - diluted 10(b) 67.7 42.9 The notes set out on pages 14 to 50 form an integral part of these financial statements. 6
BALANCE SHEETS AS AT 31 AUGUST 2001 Note 2001 2000 2001 2000 PROPERTY, PLANT AND EQUIPMENT 12 48,270.3 45,709.6 42,827.0 41,881.4 SUBSIDIARIES 13 - - 594.3 593.4 ASSOCIATES 14 725.8 582.0 335.8 284.0 INVESTMENTS 15 391.0 402.4 389.8 401.2 LONG TERM RECEIVABLES 16-444.0 2,889.8 2,315.7 CURRENT ASSETS Inventories 17 982.4 1,001.0 237.9 225.3 Receivables 18 3,293.4 2,500.9 2,675.1 2,006.8 Amount owing from subsidiaries 19 - - 282.1 306.4 Amount owing from associates 3.9 21.4 3.9 13.5 Marketable securities 20 47.7 59.5 47.7 59.5 Cash and bank balances 21 870.3 768.3 449.0 406.1 5,197.7 4,351.1 3,695.7 3,017.6 CURRENT LIABILITIES Payables 22 3,433.5 3,211.5 2,509.9 2,412.0 Amount owing to subsidiaries 19 - - 467.4 164.0 Amount owing to associates 356.2 353.2 356.1 345.3 Current taxation 390.0 325.4 271.7 246.1 Proposed dividend 133.6 156.6 133.6 156.6 Short term borrowings 23 3,213.8 5,371.6 2,981.4 5,167.9 7,527.1 9,418.3 6,720.1 8,491.9 NET CURRENT LIABILITIES (2,329.4) (5,067.2) (3,024.4) (5,474.3) TOTAL ASSETS LESS CURRENT LIABILITIES 47,057.7 42,070.8 44,012.3 40,001.4 The notes set out on pages 14 to 50 form an integral part of these financial statements. 7
BALANCE SHEETS AS AT Note 2001 2000 2001 2000 LONG TERM LIABILITIES Term loans 24 (25,101.8) (22,289.9) (22,240.3) (20,685.0) Consumer deposits (1,324.9) (1,224.5) (1,249.1) (1,153.9) Retirement benefits 25 (452.8) (383.6) (448.5) (380.6) Other liabilities (110.4) (123.7) (81.2) (85.5) (26,989.9) (24,021.7) (24,019.1) (22,305.0) DEFERRED TAXATION 26 (975.8) (970.9) (1,000.0) (1,000.0) DEFERRED INCOME 27 (2,149.5) (2,097.3) (1,982.9) (1,934.7) GOVERNMENT DEVELOPMENT GRANTS 28 (516.6) (380.0) - - 16,425.9 14,600.9 17,010.3 14,761.7 Financed by: SHARE CAPITAL 29 3,106.8 3,106.2 3,106.8 3,106.2 SHARE PREMIUM 30 3,143.4 3,140.4 3,143.4 3,140.4 REVALUATION AND OTHER RESERVES 31 1,157.2 1,183.0 1,231.2 1,231.2 RETAINED PROFITS 32 8,970.9 7,089.0 9,528.9 7,283.9 SHAREHOLDERS FUNDS 16,378.3 14,518.6 17,010.3 14,761.7 MINORITY INTERESTS 47.6 82.3 - - 16,425.9 14,600.9 17,010.3 14,761.7 Sen Sen NET ASSETS PER SHARE 10(c) 527 467 The notes set out on pages 14 to 50 form an integral part of these financial statements. 8
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2001 Non-distributable Distributable Ordinary Revaluation shares of Share and other Retained Note RM1.00 each premium reserves profits Total RM million At 1 September 1999 3,101.4 3,112.9 1,208.1 5,979.9 13,402.3 Net losses not recognised in income statement - currency translation differences 31 - - (25.1) - (25.1) Profit attributable to shareholders for the financial year ended 31 August 2000 - - - 1,332.8 1,332.8 Dividends for the financial year ended 31 August 2000 11 - - - (223.7) (223.7) Issuance of share capital - share options 29, 30 4.8 27.5 - - 32.3 At 31 August 2000 3,106.2 3,140.4 1,183.0 7,089.0 14,518.6 Net losses not recognised in income statement - currency translation differences 31 - - (25.8) - (25.8) Profit attributable to shareholders for the financial year ended 31 August 2001 - - - 2,105.0 2,105.0 Dividends for the financial year ended 31 August 2001 11 - - - (223.1) (223.1) Issuance of share capital - share options 29, 30 0.6 3.0 - - 3.6 At 31 August 2001 3,106.8 3,143.4 1,157.2 8,970.9 16,378.3 The notes set out on pages 14 to 50 form an integral part of these financial statements. 9
COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2001 Non-distributable Distributable Ordinary Revaluation shares of Share and other Retained Note RM1.00 each premium reserves profits Total RM million At 1 September 1999 3,101.4 3,112.9 1,231.2 5,934.2 13,379.7 Profit after taxation for the financial year ended 31 August 2000 - - - 1,573.4 1,573.4 Dividends for the financial year ended 31 August 2000 11 - - - (223.7) (223.7) Issuance of share capital - share options 29, 30 4.8 27.5 - - 32.3 At 31 August 2000 3,106.2 3,140.4 1,231.2 7,283.9 14,761.7 Profit after taxation for the financial year ended 31 August 2001 - - - 2,468.1 2,468.1 Dividends for the financial year ended 31 August 2001 11 - - - (223.1) (223.1) Issuance of share capital - share options 29, 30 0.6 3.0 - - 3.6 At 31 August 2001 3,106.8 3,143.4 1,231.2 9,528.9 17,010.3 The notes set out on pages 14 to 50 form an integral part of these financial statements. 10
CASH FLOW STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2001 2001 2000 2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES Profit after taxation 2,070.2 1,293.3 2,468.1 1,573.4 Adjustments for: Taxation 122.8 230.5 (18.3) 146.5 Provision for diminution in value of property, plant and equipment 250.0 332.4 - - Depreciation 1,976.7 1,692.0 1,852.4 1,597.3 Provision for retirement benefits 75.4 62.5 73.2 61.2 Translation (gain)/loss - foreign term loans (742.2) 316.4 (741.2) 337.0 Release of deferred income (249.3) (266.5) (229.1) (247.3) Gain on disposal of property, plant and equipment (0.4) (1.7) (0.2) (1.9) Share of results in associates (125.2) (107.0) - - (Gain)/loss on disposal of marketable securities (2.6) 0.1 (2.6) 0.1 Dividend income (7.7) (11.9) (14.2) (32.9) Interest income (109.4) (173.5) (266.8) (181.0) Interest on borrowings 1,077.6 1,062.2 1,063.9 1,047.8 Property, plant and equipment written off 0.5 32.4 0.5 30.1 Release of government development grants (43.4) (45.3) - - Provision for diminution in value of an associate 9.6-9.6 - Provision for diminution in value of investments 11.4 36.0 11.4 36.0 Provision for/(write back of) diminution in value of marketable securities 11.7 (4.4) 11.7 (4.4) Inventories written off 6.5 69.9 5.1 65.1 4,332.2 4,517.4 4,223.5 4,427.0 Inventories 5.1 43.7 (17.7) 65.7 Receivables (246.3) (351.5) (1,074.4) (1,280.1) Payables 280.6 (63.2) 148.5 208.0 Amount owing from/to subsidiaries - - 327.7 (9.2) Amount owing from/to associates 20.5 35.1 20.4 35.1 Cash generated from operations 4,392.1 4,181.5 3,628.0 3,446.5 Retirement benefits paid (6.2) (5.9) (5.3) (5.6) Consumer contributions received 301.5 300.7 277.3 279.7 Consumer deposits received 100.4 119.8 95.3 112.2 Tax refund received 71.9-71.9 - Taxation paid (88.1) (39.5) (28.1) - Net cash inflow from operating activities 4,771.6 4,556.6 4,039.1 3,832.8 The notes set out on pages 14 to 50 form an integral part of these financial statements. 11
CASH FLOW STATEMENTS FOR THE FINANCIAL YEAR ENDED CASH FLOWS FROM INVESTING ACTIVITIES 2001 2000 2001 2000 Additional investment in subsidiaries - - (0.9) (324.5) Additional investment in associates (77.7) (88.3) (72.0) (72.9) Proceeds from redemption of preference shares in an associate - 50.0-50.0 Proceeds from redemption of unsecured loan notes in an associate 10.6 9.5 10.6 9.5 Purchase of marketable securities (8.4) (14.4) (8.4) (14.4) Purchase of long term investment - (12.8) - (12.6) Net proceeds from sale of marketable securities 12.0 20.6 12.0 20.6 Investment income received 7.2 58.8 18.6 58.8 Interest income received 104.0 95.9 93.5 89.0 Purchase of property, plant and equipment (4,409.9) (4,358.8) (2,447.8) (2,945.0) Proceeds from disposal of property, plant and equipment 4.9 6.6 0.7 3.2 Net cash outflow from investing activities (4,357.3) (4,232.9) (2,393.7) (3,138.3) CASH FLOWS FROM FINANCING ACTIVITIES Government development grants received 180.0 76.5 - - Proceeds from issuance of shares 3.6 32.3 3.6 32.3 Proceeds from long term borrowings 6,960.0 1,572.1 5,706.5 1,040.9 Repayment of long term borrowings (4,927.3) (1,348.3) (4,920.2) (1,228.2) Interest paid (1,702.3) (1,572.3) (1,470.0) (1,491.0) Dividends paid (246.1) (178.7) (246.1) (178.7) Proceeds from short term borrowings 2,272.7 3,305.6 2,144.7 3,276.0 Repayment of short term borrowings (2,837.9) (2,440.0) (2,821.0) (2,430.0) Portion of additional investment in a subsidiary taken up by minority interests - 52.5 - - Net cash outflow from financing activities (297.3) (500.3) (1,602.5) (978.7) The notes set out on pages 14 to 50 form an integral part of these financial statements. 12
CASH FLOW STATEMENTS FOR THE FINANCIAL YEAR ENDED 2001 2000 2001 2000 NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 117.0 (176.6) 42.9 (284.2) EFFECT OF CHANGES IN FOREIGN CURRENCY (14.5) (25.1) - - CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL YEAR 765.7 967.4 406.1 690.3 CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL YEAR 868.2 765.7 449.0 406.1 Cash and cash equivalents at end of the financial year comprise: Cash in hand and at bank 194.0 296.7 63.9 18.2 Deposits with licensed banks 657.9 446.8 382.6 383.9 Deposits with finance companies 18.4 24.8 2.5 4.0 Bank overdrafts (2.1) (2.6) - - 868.2 765.7 449.0 406.1 Included in cash and cash equivalents are deposits amounting to RM151.5 million (2000: Nil) and cash at bank amounting to RM25.9 million (2000: Nil), which are held in trust by a subsidiary in respect of a grant given by the Malaysian Government for a designated capital project. The notes set out on pages 14 to 50 form an integral part of these financial statements. 13
NOTES TO THE FINANCIAL STATEMENTS 31 AUGUST 2001 1. GENERAL INFORMATION The principal activities of the are the generation, transmission, distribution and sale of electricity. The principal activities of the subsidiaries and associates are described in Note 13 and 14 respectively to the financial statements. There have been no significant changes in these activities during the financial year. The is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Board of the Kuala Lumpur Stock Exchange. The address of the registered office of the is 129 Jalan Bangsar, 59200 Kuala Lumpur, Malaysia. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies of the and of the which are consistent with those adopted in the previous financial year are summarised below: (a) Basis of accounting The financial statements are prepared under the historical cost convention as modified by the revaluation of certain property, plant and equipment and comply with the applicable approved accounting standards in Malaysia and the provisions of the Companies Act, 1965. (b) Basis of consolidation The consolidated financial statements include the financial statements of the and its subsidiaries made up to the end of the financial year. Subsidiaries are those enterprises in which the has power to exercise control over the financial and operating policies as to obtain benefits from their activities. The consolidated income statement includes the results of subsidiaries acquired or disposed during the financial year from the date of their acquisition or up to the date of their disposal respectively using the acquisition method of accounting. All intergroup transactions, balances and unrealised surpluses and deficits on transactions have been eliminated. (c) Associates Associates are enterprises, other than subsidiaries, in which the has a long term equity interest of not less than 20% and has representation on the Board and is in a position to exercise significant influence over the financial and operating policies of the enterprise. The consolidated financial statements include the appropriate share of these associates results and reserves based on management accounts made up to the date of the s financial statements. Premium paid on acquisition is written off against reserves. (d) Goodwill Goodwill arising on consolidation represents the excess of the purchase price over the fair value of the net assets of the subsidiary at the date of acquisition. Goodwill is written off to reserves in the year of acquisition. Negative goodwill represents the excess of the fair value of the s share of identifiable net assets acquired over the purchase price. Negative goodwill is written off to reserves in the year of acquisition. (e) Foreign currency Foreign currency transactions are converted into Ringgit Malaysia at exchange rates ruling at the transaction dates unless hedged by forward foreign exchange contracts, in which case the rates specified in such forward contracts are used. Monetary assets and liabilities in foreign currencies are translated at exchange rates ruling at the balance sheet date unless hedged by forward foreign exchange contracts, in which case the rates specified in such forward contracts are used. All exchange differences are dealt with through the income statement. 14
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (e) Foreign currency (continued) Results of foreign subsidiaries and associates are translated into Ringgit Malaysia at average rates of exchange for the financial year. Assets and liabilities are translated into Ringgit Malaysia at the rates of exchange ruling at the balance sheet date. Exchange differences arising from the translation of the results for the financial year at average rates and assets and liabilities at year end rates, and the restatement at year end rates of the opening net investments in foreign subsidiaries and associates are taken to a foreign currency translation reserve account as a component of shareholders funds. The principal closing rates used in translation of foreign currency amounts were as follows: Foreign currency 2001 2000 RM RM 1 USD 3.8000 3.8000 100 JPY 3.1725 3.5820 1 GBP 5.5146 5.4829 (f) Property, plant and equipment and depreciation Property, plant and equipment are stated at cost or valuation less accumulated depreciation and impairment losses. The Directors have applied the transitional provisions of International Accounting Standard No. 16 (Revised) Property, Plant and Equipment as adopted by Malaysian Accounting Standards Board which allow the freehold land, leasehold land, buildings and civil works to be stated at their previous years valuations less depreciation. Accordingly, these valuations have not been updated. Surpluses arising on revaluation are credited to revaluation reserve. Any deficit arising from revaluation is charged against the revaluation reserve to the extent of a previous surplus held in the revaluation reserve for the same asset. In all other cases, a decrease in carrying amount is charged to income statement. Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amount and are taken into account in determining profit/(loss) from operations. On disposal of revalued assets, amount in revaluation reserve relating to those property, plant and equipment are transferred to retained profits. Freehold land and capital project-in-progress are not depreciated. Leasehold land is amortised over the period of the respective lease ranging from 5 to 99 years on a straight line basis. Depreciation is provided on all other categories of property, plant and equipment on a straight line basis which reflects the estimated useful lives of the assets. The estimated useful lives of property, plant and equipment are as follows: (g) (h) Buildings and civil works Plant and machinery Lines and distribution mains Distribution services Meters Public lighting Furniture, fittings and office equipment Motor vehicles 10 to 60 years 10 to 40 years 25 to 35 years 20 years 15 years 15 to 25 years 5 to 10 years 5 to 10 years Where an indication of impairment exists, the carrying amount of the asset is assessed and written down immediately to its recoverable amount. Capitalisation of interest Interest incurred on external borrowings related to long term capital project-in-progress is capitalised until the assets are ready for their intended use. Inventories Inventories are stated at the lower of cost and net realisable value. Costs of work-in-progress and finished goods comprise raw materials, direct labour and a proportion of the production overheads. Cost is determined on the weighted average or first-in first-out basis. Net realisable value is the estimate of the selling price in the ordinary course of business, less the costs of completion and selling expenses. 15
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (i) Marketable securities Marketable securities are stated at the lower of cost and market value on an aggregate basis. Cost is derived at on the weighted average basis. Market value is calculated by reference to stock exchange quoted selling prices at the close of business at the balance sheet date. Any write downs to the market value of investments or subsequent write backs to cost are dealt with through the income statement. (j) Retirement benefits Defined contribution plan The s contributions to a defined contribution plan is charged to the income statement in the financial year to which they relate. Defined benefit plan The makes contributions to the s Retirement Benefit Scheme, a defined benefit scheme and approved fund independent of the s finances. The cost of retirement benefits under this Scheme is determined based on actuarial valuation using the Projected Unit Credit Method. Provision is made in the financial statements for the balance of the Scheme that is not externally funded. Under the Projected Unit Credit Method, the Current Service Cost is calculated as the present value of benefits which will accrue in the next twelve months following the valuation date (by reference to the number of employees providing the service in that year and projected final salaries). This is in accordance with the advice of qualified actuaries who carry out a full valuation of the plan every three years. The pension obligation is measured at the present value of the estimated future cash outflows using the interest rates of government securities and a risk premium for additional risk on investment in corporate debt. All actuarial gains and losses are recognised in the income statement in the year subsequent to the full valuation of the plan. (k) Deferred taxation The tax expense is determined on the basis of tax effect accounting using the liability method. Deferred taxation is recognised for timing differences except when there is reasonable evidence that such timing differences will not reverse in the foreseeable future. The tax effect of timing differences that result in a debit balance or a debit to the deferred tax balance is not carried forward unless there is a reasonable expectation of its realisation. The potential tax saving relating to a tax loss carry forward is only recognised if there is assurance beyond reasonable doubt that future taxable income will be sufficient for the benefit of the loss to be realised. (l) Investments Investments in subsidiaries, associates and other investments held for long term are stated at cost, less provision for any permanent diminution in their value. Provision for permanent diminution is only made where in the opinion of the Directors, there is a permanent diminution in value. Permanent diminution in the value of an investment is recognised as an expense in the period in which the diminution is identified. (m) (n) On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is charged or credited to the income statement. Deferred income Contributions received from certain customers to defray the cost of capital projects are credited to the deferred income account. The amount in this account is released to the income statement on a straight line basis over 15 years, being the average useful life of such projects. Operating leases Leases of assets under which all the rewards and risks of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place. 16
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (o) Trade receivables Trade receivables are carried at anticipated realisable value. Bad debts are written off in the period in which they are identified. An estimate is made for doubtful receivables based on review of all outstanding amounts at the financial year end. (p) Cash and cash equivalents Cash and cash equivalents comprise bank balances, deposits with maturity period not exceeding 3 months and cash in hand less bank overdrafts. (q) Revenue recognition Sales are recognised upon invoiced value of services delivered net of billing adjustments. Other revenues earned by the are recognised on the following bases: Interest income: As it accrues, unless collectibility is in doubt. Dividend income: When the shareholders right to receive payment is established. (r) Government development grants Government development grants relating to the construction of property, plant and equipment are included in long term liabilities and are credited to the income statement on a straight line basis over 15 years. (s) Financial instruments Financial instruments carried on the balance sheet include cash and bank balances, investments, receivables, payables, leases and borrowings. The particular recognition methods adopted are disclosed in the individual policy statements associated with each item. The and are also parties to financial instruments that manage exposure to fluctuations in foreign currency exchange and interest rate. These financial instruments, which mainly comprise foreign currency forward contracts and interest rate swap agreements, are not recognised in the financial statements on inception. The purpose of these instruments is to reduce risk. Financial derivatives hedging instruments are used in the s risk management of foreign currency and interest rate risk exposure of its financial liabilities. Hedge accounting principles are applied for the accounting of the underlying exposures and their hedge instruments. The underlying foreign currency liabilities are translated at their respective hedged exchange rate, and net differentials in interest receipts and payments arising from interest rate derivative instruments are accrued, so as to match those net differentials with the related interest expense on the hedged liabilities. No amounts are recognised in respect of future periods. (t) Rural electrification and 7th Malaysia Plan Projects Rural electrification projects are capitalised as property, plant and equipment. The cost of 7th Malaysia Plan Projects in the State of Sabah are only capitalised and accounted for as property, plant and equipment upon receipt of formal handover documentation. The corresponding amounts are recorded as government development grants and such grants are released to the income statement on a straight line basis over the same period as the expected economic life of the projects. 3. REVENUE 2001 2000 2001 2000 Sales - electricity 13,951.8 13,220.0 13,455.9 12,750.5 - goods and services 161.5 232.6 - - Release of deferred income (Note 27) 249.3 266.5 229.1 247.3 14,362.6 13,719.1 13,685.0 12,997.8 17
4. OPERATING EXPENSES 2001 2000 2001 2000 Energy cost 7,588.7 7,215.2 8,533.5 8,067.6 Transmission cost 567.5 517.0 544.5 494.2 Distribution cost 2,419.5 1,954.7 2,395.6 1,928.9 Administrative expenses 648.6 604.2 341.4 297.1 Other operating expenses 695.5 673.9 561.7 376.3 11,919.8 10,965.0 12,376.7 11,164.1 Operating expenses include the following items: Directors remuneration - fees 0.5 0.4 0.5 0.3 - other emoluments 0.4 0.9 0.4 0.9 Auditors remuneration 0.5 0.5 0.2 0.2 Depreciation 1,976.7 1,692.0 1,852.4 1,597.3 Retirement benefits expenses 100.8 62.5 91.7 61.2 Rental of land and buildings 25.8 33.0 32.8 20.0 Rental of plant and machinery 13.0 6.8 13.0 6.8 Research and development expenses 42.0 16.2 41.0 15.7 Property, plant and equipment written off 0.5 32.4 0.5 30.1 Provision for diminution in value of investments 11.4 36.0 11.4 36.0 Provision for diminution in value of an associate 9.6-9.6 - Provision for/(write back of) diminution in value of marketable securities 11.7 (4.4) 11.7 (4.4) Staff costs 1,039.2 1,034.6 752.1 741.4 The number of persons employed at the end of the financial year was 25,125 (2000: 24,334) for the and 18,003 (2000: 18,063) for the. The estimated money value of benefits-in-kind received by the Directors was RM86,052 (2000: RM114,664) for the and RM86,052 (2000: RM114,664) for the. 5. OTHER OPERATING INCOME 2001 2000 2001 2000 Dividend income on investments from - subsidiaries - - 0.4 - - quoted shares 7.7 11.9 7.7 11.9 - unquoted shares - - 6.1 21.0 Leasing income from subsidiaries - - 1,099.5 1,034.0 Interest income 109.4 173.5 266.8 181.0 Rental income 6.9 23.2 40.4 23.8 Release of government development grants (Note 28) 43.4 45.3 - - Government subsidies 36.3 55.5 - - Gain/(loss) on disposal of marketable securities 2.6 (0.1) 2.6 (0.1) Gain on disposal of property, plant and equipment 0.4 1.7 0.2 1.9 Other income 142.9 170.7 118.0 105.5 349.6 481.7 1,541.7 1,379.0 18
6. EXCEPTIONAL ITEMS 2001 2000 2001 2000 Provision for diminution in value of property, plant and equipment in a subsidiary (Note (a)) 250.0 332.4 - - Redemption premium and fees (Note (b)) 123.7-123.7-373.7 332.4 123.7 - (a) The provision relates to the s equity investment in a subsidiary, Liberty Power Limited ( LPL ). LPL is involved in the construction of a power plant in Pakistan and the generation and sale of electricity to the Water & Power Development Authority of Pakistan. The provision of RM332.4 million for the financial year ended 31 August 2000 was made due to the uncertainties relating to the extension of the Gas Supply Agreement and finalisation of the Power Purchase Agreement. An additional provision of RM250.0 million has been made in the financial year ended 31 August 2001 in respect of the s equity investment in LPL. On 10 September 2001, LPL s power plant achieved commercial operation. (b) On 4 April 2001, the purchased USD302.6 million of its 7.875% Notes due June 2004 and USD176.2 million of its 7.200% Notes due April 2007 at a total consideration (excluding accrued interest) of USD505.0 million. Simultaneously, the issued USD600.0 million 7.625% Notes due 2011 which were fully subscribed. The redemption premium and fees associated with the above transaction amounted to RM123.7 million. 7. FOREIGN EXCHANGE GAIN/(LOSS) Foreign exchange gain/(loss) comprises: 2001 2000 2001 2000 Translation gain/(loss) - foreign term loans 742.2 (316.4) 741.2 (337.0) Translation (loss)/gain - others (19.6) (9.7) 42.2 (9.7) Transaction gain/(loss) 62.9 (45.0) 62.8 (45.0) 785.5 (371.1) 846.2 (391.7) The translation gain/(loss) is in respect of term loans denominated in foreign currencies which are repayable over the following periods: Within one year 98.9 (35.7) 105.3 (35.5) After one and up to two years 109.1 (38.8) 108.7 (38.6) After two and up to five years 113.0 (92.5) 111.6 (92.0) After five and up to ten years 379.6 (134.0) 377.3 (156.9) After ten and up to twenty years 41.6 (15.4) 38.3 (14.0) 742.2 (316.4) 741.2 (337.0) 19
8. FINANCE COST 2001 2000 2001 2000 Interest on borrowings 1,646.3 1,486.4 1,415.1 1,407.0 Less: Amount capitalised into property, plant and equipment (568.7) (424.2) (351.2) (359.2) Interest on consumer deposits 58.8 53.3 58.8 53.3 1,136.4 1,115.5 1,122.7 1,101.1 9. TAXATION Arising in Malaysia: Tax charge for the financial year In respect of current financial year - 38.3 146.5 38.3 146.5 - Subsidiaries 97.2 82.4 - - In respect of prior years - (56.6) - (56.6) - In respect of current financial year Deferred taxation 4.9 (24.4) - - 83.8 204.5 (18.3) 146.5 The amount of unutilised tax losses of subsidiaries available for set off against their future income chargeable to tax of the respective subsidiaries amounted to RM552.9 million (2000: RM377.1 million). The effective tax rate for the and the for the financial year ended 31 August 2001 is lower than the statutory rate due to the utilisation of brought forward and current capital allowances amounting to approximately RM3,589.5 million. 20
10. EARNINGS PER SHARE (a) Basic earnings per share Basic earnings per share of the is calculated by dividing the profit attributable to shareholders by the weighted average number of ordinary shares in issue during the financial year. 2001 2000 Profit attributable to shareholders (RM million) 2,105.0 1,332.8 Weighted average number of ordinary shares in issue ( 000) 3,106,519 3,103,306 Basic earnings per share (sen) 67.8 42.9 (b) Diluted earnings per share For the diluted earnings per share calculation, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The has one category of dilutive potential ordinary shares: Share options granted to employees. In the diluted earnings per share calculation, the share options are assumed to have been converted into ordinary shares at the beginning of the financial year and the adjusted profit attributable to shareholders is arrived at after adjusting for interests savings (net of tax) on term loans. 2001 2000 Profit attributable to shareholders (RM million) 2,105.0 1,332.8 Adjusted for interest savings (net of tax) on term loans (RM million) 2.8 1.9 Adjusted profit attributable to shareholders (RM million) 2,107.8 1,334.7 Weighted average number of ordinary shares in issue ( 000) 3,106,519 3,103,306 Adjustment for: - share options ( 000) 7,662 4,824 Weighted average number of ordinary shares for diluted earnings per share ( 000) 3,114,181 3,108,130 Diluted earnings per share (sen) 67.7 42.9 (c) Net assets per share The net assets per share is calculated by dividing the net assets of the by the number of ordinary shares in issue at the balance sheet date. 11. DIVIDENDS 2001 2000 Amount of Amount of Sen per dividend Sen per dividend share RM million share RM million Interim dividend 4.0 89.5 3.0 67.1 Proposed final dividend 4.3 133.6 7.0 156.6 8.3 223.1 10.0 223.7 Interim dividends are paid and accounted for in shareholders equity as an appropriation of retained profits in the financial year. The liability on the proposed final dividend has been taken into account in the current year s financial statements. At the forthcoming Annual General Meeting, a final dividend in respect of the financial year ended 31 August 2001 of 4.3 sen gross per ordinary share, tax exempt, amounting to RM133.6 million will be proposed for shareholders approval. In respect of the financial year ended 31 August 2000, a final dividend of 7.0 sen gross per ordinary share less Malaysian income tax amounted to RM156.6 million was declared. 21
12. PROPERTY, PLANT AND EQUIPMENT Exchange As at rate Transfers/ As at 1.9.2000 adjustment Additions Disposals reclassifications 31.8.2001 RM million RM million 2001 Cost/Valuation At 1984 and earlier valuations: Long leasehold land 8.4 - - - - 8.4 Buildings and civil works 6.5 - - - - 6.5 At 1994 valuation: Freehold land 845.5 - - (0.1) (155.9) 689.5 Long leasehold land 446.4 - - - 156.0 602.4 Short leasehold land 3.5 - - - (0.1) 3.4 Buildings and civil works 441.9 - - (1.5) - 440.4 At cost: 1,752.2 - - (1.6) - 1,750.6 Freehold land 195.6-14.1-20.6 230.3 Long leasehold land 140.2-1.9 - (37.3) 104.8 Short leasehold land 38.2 - - - - 38.2 Buildings and civil works 7,978.5 (0.3) 934.5-0.1 8,912.8 10,104.7 (0.3) 950.5 (1.6) (16.6) 11,036.7 Plant and machinery 18,563.6-3,730.7 (3.7) 2.0 22,292.6 Lines and distribution mains 14,407.4-952.6-5.2 15,365.2 Distribution services 1,542.4-49.7 - (48.0) 1,544.1 Meters 595.3-21.6 - - 616.9 Public lighting 206.9-6.5 - - 213.4 Furniture, fittings and office equipment 577.4 (0.8) 26.0 (0.6) (15.9) 586.1 Motor vehicles 264.4 (0.1) 11.9 (2.3) (0.3) 273.6 46,262.1 (1.2) 5,749.5 (8.2) (73.6) 51,928.6 Capital project-in-progress 12,405.9 (184.6) 5,865.0 - (6,585.0) 11,501.3 58,668.0 (185.8) 11,614.5 (8.2) (6,658.6) 63,429.9 22
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Released on As at Charge for disposals/ As at 1.9.2000 the financial year transfers 31.8.2001 2001 Accumulated depreciation At 1984 and earlier valuations: Long leasehold land 1.5 - - 1.5 Buildings and civil works 2.7 0.5-3.2 At 1994 valuation: Freehold land - - - - Long leasehold land 40.4 8.0-48.4 Short leasehold land 0.3 - - 0.3 Buildings and civil works 75.0 17.6 (1.0) 91.6 At cost: 119.9 26.1 (1.0) 145.0 Freehold land - - - - Long leasehold land 15.9 (7.3) - 8.6 Short leasehold land 4.3 0.5-4.8 Buildings and civil works 1,513.7 202.4-1,716.1 1,653.8 221.7 (1.0) 1,874.5 Plant and machinery 6,075.9 910.8 (0.9) 6,985.8 Lines and distribution mains 3,573.9 608.7-4,182.6 Distribution services 558.3 70.7 (5.5) 623.5 Meters 257.5 34.6-292.1 Public lighting 65.0 9.3-74.3 Furniture, fittings and office equipment 274.1 87.5 (16.0) 345.6 Motor vehicles 167.5 33.4 (2.1) 198.8 12,626.0 1,976.7 (25.5) 14,577.2 Capital project-in-progress 332.4 250.0-582.4* 12,958.4 2,226.7 (25.5) 15,159.6 * Relates to a provision in respect of Liberty Power Limited (Note 6(a)). 23
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Exchange As at rate Transfers/ As at 1.9.1999 adjustment Additions Disposals reclassifications 31.8.2000 RM million RM million 2000 Cost/Valuation At 1984 and earlier valuations: Long leasehold land 8.4 - - - - 8.4 Buildings and civil works 6.5 - - - - 6.5 At 1994 valuation: Freehold land 845.5 - - - - 845.5 Long leasehold land 446.6 - - (0.2) - 446.4 Short leasehold land 3.5 - - - - 3.5 Buildings and civil works 441.9 - - - - 441.9 At cost: 1,752.4 - - (0.2) - 1,752.2 Freehold land 289.4-0.5 - (94.3) 195.6 Long leasehold land 74.4-101.0 (35.2) - 140.2 Short leasehold land 38.2 - - - - 38.2 Buildings and civil works 7,286.9 (0.1) 693.9 (2.2) - 7,978.5 9,441.3 (0.1) 795.4 (37.6) (94.3) 10,104.7 Plant and machinery 17,035.1-1,545.0 (16.5) - 18,563.6 Lines and distribution mains 12,685.0-1,722.4 - - 14,407.4 Distribution services 1,313.4-229.0 - - 1,542.4 Meters 415.3-180.0 - - 595.3 Public lighting 183.0-23.9 - - 206.9 Furniture, fittings and office equipment 363.4 (0.8) 226.9 (12.1) - 577.4 Motor vehicles 243.0 (0.2) 57.5 (35.9) - 264.4 41,679.5 (1.1) 4,780.1 (102.1) (94.3) 46,262.1 Capital project-in-progress 12,321.1 (41.0) 5,002.6 (2.2) (4,874.6) 12,405.9 54,000.6 (42.1) 9,782.7 (104.3) (4,968.9) 58,668.0 24
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Charge Released on As at for the disposals/ As at 1.9.1999 financial year transfers 31.8.2000 2000 Accumulated depreciation At 1984 and earlier valuations: Long leasehold land 1.4 0.1-1.5 Buildings and civil works 2.7 - - 2.7 At 1994 valuation: Freehold land - - - - Long leasehold land 31.0 9.4-40.4 Short leasehold land 0.3 - - 0.3 Buildings and civil works 54.2 20.8-75.0 At cost: 89.6 30.3-119.9 Freehold land - - - - Long leasehold land 14.0 1.9-15.9 Short leasehold land 3.8 0.5-4.3 Buildings and civil works 1,347.5 167.2 (1.0) 1,513.7 1,454.9 199.9 (1.0) 1,653.8 Plant and machinery 5,325.9 750.5 (0.5) 6,075.9 Lines and distribution mains 3,045.2 553.1 (24.4) 3,573.9 Distribution services 496.1 62.6 (0.4) 558.3 Meters 230.3 27.2-257.5 Public lighting 57.8 8.5 (1.3) 65.0 Furniture, fittings and office equipment 222.8 67.8 (16.5) 274.1 Motor vehicles 179.3 22.4 (34.2) 167.5 11,012.3 1,692.0 (78.3) 12,626.0 Capital project-in-progress - 332.4-332.4* 11,012.3 2,024.4 (78.3) 12,958.4 * Relates to a provision in respect of Liberty Power Limited (Note 6(a)). 25
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 2001 Cost/Valuation At 1994 valuation: As at Transfers/ As at 1.9.2000 Additions Disposals reclassifications 31.8.2001 RM million Freehold land 845.5 - (0.1) (155.9) 689.5 Long leasehold land 446.4 - - 156.0 602.4 Short leasehold land 3.5 - - (0.1) 3.4 Buildings and civil works 441.9 - (1.5) - 440.4 At cost: 1,737.3 - (1.6) - 1,735.7 Freehold land 179.4 14.5-20.6 214.5 Long leasehold land 134.5 - - (20.6) 113.9 Short leasehold land 23.2 - - - 23.2 Buildings and civil works 7,588.7 938.4 - - 8,527.1 9,663.1 952.9 (1.6) - 10,614.4 Plant and machinery 18,092.2 3,736.8 - - 21,829.0 Lines and distribution mains 13,794.3 948.7 - (0.1) 14,742.9 Distribution services 1,479.9 49.0 - (48.8) 1,480.1 Meters 603.1 13.6 - - 616.7 Public lighting 196.4 6.5 - - 202.9 Furniture, fittings and office equipment 497.3 9.9 - (16.2) 491.0 Motor vehicles 239.2 4.3 (2.1) 0.1 241.5 44,565.5 5,721.7 (3.7) (65.0) 50,218.5 Capital project-in-progress 9,728.5 2,842.8 - (5,721.7) 6,849.6 54,294.0 8,564.5 (3.7) (5,786.7) 57,068.1 26
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 2001 Accumulated depreciation At 1994 valuation: Charge Released on As at for the disposals/ As at 1.9.2000 financial year transfers 31.8.2001 Freehold land - - - - Long leasehold land 40.4 8.0-48.4 Short leasehold land 0.3 - - 0.3 Buildings and civil works 75.0 17.6 (1.0) 91.6 At cost: 115.7 25.6 (1.0) 140.3 Freehold land - - - - Long leasehold land 15.7 (7.5) - 8.2 Short leasehold land 3.5 0.3-3.8 Buildings and civil works 1,489.5 191.4-1,680.9 1,624.4 209.8 (1.0) 1,833.2 Plant and machinery 5,991.7 856.4-6,848.1 Lines and distribution mains 3,534.0 586.2-4,120.2 Distribution services 547.8 66.1 (5.5) 608.4 Meters 255.4 34.0-289.4 Public lighting 65.3 9.3-74.6 Furniture, fittings and office equipment 236.9 63.5 (15.7) 284.7 Motor vehicles 157.1 27.1 (1.7) 182.5 12,412.6 1,852.4 (23.9) 14,241.1 27
12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 2000 Cost/Valuation At 1994 valuation: As at Transfers/ As at 1.9.1999 Additions Disposals reclassifications 31.8.2000 RM million Freehold land 845.5 - - - 845.5 Long leasehold land 446.4 - - - 446.4 Short leasehold land 3.5 - - - 3.5 Buildings and civil works 441.9 - - - 441.9 At cost: 1,737.3 - - - 1,737.3 Freehold land 273.7 - - (94.3) 179.4 Long leasehold land 63.8 100.7 (30.0) - 134.5 Short leasehold land 23.2 - - - 23.2 Buildings and civil works 6,900.3 690.6 (2.2) - 7,588.7 8,998.3 791.3 (32.2) (94.3) 9,663.1 Plant and machinery 16,584.5 1,509.0 - (1.3) 18,092.2 Lines and distribution mains 12,137.7 1,695.8 - (39.2) 13,794.3 Distribution services 1,313.4 225.7 - (59.2) 1,479.9 Meters 410.4 195.7 - (3.0) 603.1 Public lighting 183.0 23.9 - (10.5) 196.4 Furniture, fittings and office equipment 301.9 207.3 (11.9) - 497.3 Motor vehicles 222.8 51.5 (35.1) - 239.2 40,152.0 4,700.2 (79.2) (207.5) 44,565.5 Capital project-in-progress 10,929.1 3,551.5 - (4,752.1) 9,728.5 51,081.1 8,251.7 (79.2) (4,959.6) 54,294.0 28