TAN␣ CHONG␣ MOTOR␣ HOLDINGS␣ BERHAD - …tanchonggroup.listedcompany.com/misc/ar1999.pdf ·...
Transcript of TAN␣ CHONG␣ MOTOR␣ HOLDINGS␣ BERHAD - …tanchonggroup.listedcompany.com/misc/ar1999.pdf ·...
TA N ␣ C H O N G ␣ M OTO R ␣ H O L D I N G S ␣ B E R H A D(12969-P)
A N N U A L ␣ R E P O R T ␣ 1 9 9 9
Notice of Annual General Meeting 1
Corporate Information 2
Business Divisions 3
Chairman’s Report / Laporan Pengerusi 4
Listing of New Companies 12
Shareholders’ Statistics
Daily Share Prices & Volume Traded on KLSE 14
Audit Committee 16
Financial Statements 17
Group Properties 58
Form of Proxy
Contents
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1TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Twenty-Eighth Annual General Meeting of TAN CHONG MOTOR HOLDINGS BERHAD will be held at3rd Floor, 21 Jalan Ipoh Kecil, 50350 Kuala Lumpur, Malaysia on Wednesday, 24 May 2000 at 11:00 a.m. to transact the following businesses:
Ordinary Businesses
1. To receive and consider the Statement of Accounts for the year ended 31 December 1999 together with theReports of the Directors and Auditors thereto.
2. To re-appoint Dato’ Tan Kim Hor as Director pursuant to Section 129 (6) of the Companies Act, 1965.
3. To re-elect the following Directors in accordance with Article 101 of the Company’s Articles of Association:
3.1 Dato’ Tan Heng Chew3.2 Encik Azman bin Badrillah
4. To approve payment of fees to Directors.
5. To re-appoint the Auditors and authorise the Directors to fix their remuneration.
Special Business
6. To consider and if thought fit, pass with or without modifications, the following Special Resolution –
“Proposed Amendments to the Articles of Association of the Company and the Adoption of New Articles ofAssociation
RESOLVED THAT(a) in order to be consistent with
(i) the amendments to the Securities Industry (Central Depositories) Act 1991 (“SICDA”) pursuant tothe Securities Industry (Central Depositories) (Amendment) (No. 2) Act 1998; and
(ii) the amendments to the Companies Act, 1965 (“CA”) pursuant to the Companies (Amendment)(No. 2) Act, 1998; and
(iii) the amendments to the Rules of Malaysian Central Depository Sdn Bhd and the Main Board ListingRequirements of Kuala Lumpur Stock Exchange as a consequence of the amendments to the SICDAand the CA; and
(b) further, in order(i) to provide for the purchase by the Company of its own shares; and(ii) to be consistent with the Main Board Listing Requirements of Kuala Lumpur Stock Exchange and
the CA; and(iii) to enhance the administration of the internal affairs of the Company,
the Articles of Association as contained in Appendix A to the Circular to Shareholders of the Company dated 28April 2000 accompanying this Notice of Annual General Meeting (with deletions from and additions to the existingArticles of Association marked-up for ease of reference) be and are hereby approved and adopted as the Articlesof Association of the Company, in substitution for, and to the exclusion of all the existing Articles of Association.”
7. To transact any other business of the Company of which due notice shall have been received.
By Order of the Board
TAN ENG GUANCompany Secretary
Kuala Lumpur28 April 2000
Resolution 1
Resolution 2
Resolution 3
Resolution 4
Resolution 5
Resolution 6
Resolution 7
Notes:1. A member entitled to vote is entitled to appoint a proxy or proxies (but not more than two) to attend and vote for him. A proxy need not be a member
of the Company, and, where there are two proxies, the number of shares to be represented by each proxy must be stated.2. In the case of a corporation, the form of proxy appointing a corporate representative must be executed under seal or under the hand of an officer or
attorney duly authorised.3. To be valid, the form of proxy must be deposited at the Registered Office of the Company, 62 - 68 Jalan Ipoh, 51200 Kuala Lumpur, Malaysia, not less
than forty-eight hours before the time appointed for the meeting.
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2 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Corporate Information
D I R E C T O R S
Dato’ Tan Kim Hor DPMS, KMN, JP
Chairman
Ahmad bin Abdullah
Vice Chairman
Dato’ Tan Heng Chew DJMK, JP
Executive Deputy Chairman
Tan Eng Soon
Managing Director
Azman bin Badrillah
Geh Cheng Hooi
Yoshi Iwashita
Dato’ Ng Mann Cheong DSSA, SMP, JP
A U D I T C O M M I T T E E M E M B E R S
Geh Cheng Hooi
Chairman (Independent Non-executive Director)
Dato’ Ng Mann Cheong DSSA, SMP, JP
(Independent Non-executive Director)
Dato’ Tan Heng Chew DJMK, JP
(Executive Director)
C O M P A N Y S E C R E T A R Y
Tan Eng Guan
A S S I S T A N TC O M P A N Y S E C R E T A R Y
Chan Yoke-Lin
R E G I S T E R E D O F F I C E
62 - 68 Jalan Ipoh
51200 Kuala Lumpur
Telephone : (03) 442 7644 / 441 1044
Facsimile : (03) 442 7198
Email : [email protected]
R E G I S T R A R S
M & C Services Sdn Bhd
11th Floor Wisma Damansara
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Telephone : (03) 255 7188
A U D I T O R S
KPMG
Wisma KPMG
Jalan Dungun
Damansara Heights
50490 Kuala Lumpur
S T O C K E X C H A N G E L I S T I N G
Kuala Lumpur Stock Exchange
(Listed on the Main Board in 1974)
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3TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
T A N C H O N G M O T O R H O L D I N G S B E R H A D
Business Divisions
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3TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
A S S E M B L Y
• Motor vehicles
S A L E S A N D D I S T R I B U T I O N
• Passenger Cars
• Light Commercial Vehicles
• Trucks
• Buses
A F T E R - S A L E S S E R V I C E S
• Spare Parts
• Workshop
F I N A N C I A L P R O D U C T S A N D S E R V I C E S
• Hire Purchase
• Insurance
P R O P E R T Y
• Management and Investment
4 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Cha i r man ’sA T U R N I N G P O I N T
The Group completed the internal re-organisation
of its Autoparts and Non-Motor Divisions involving
the regrouping of subsidiaries of the two Divisions
under APM Automotive Holdings Berhad (“APM”) and
Warisan TC Holdings Berhad (“Warisan”) respectively
during the last quarter of 1999. APM and Warisan were
subsequently listed on Kuala Lumpur Stock Exchange
on 15 December 1999. I am confident that the new
corporate structures will sharpen further management
and strategic focus of the respective groups. The listing
of APM and Warisan has also unlocked hidden value for
the shareholders of the Company.
The new Group, with a single core business in automotive
assembly and distribution, will look toward the future with
a fresh perspective. It will gear up itself for the impending
structural changes together with other challenges and
opportunities that may come about as a result of the
consolidation of the automotive industry, the advent of
AFTA and the recovery of the domestic market.
T I T I K P E R U B A H A N
Pada suku akhir 1999, Kumpulan telah menyelesaikan
penyusunan semula dalaman yang melibatkan Bahagian
Alat Ganti Automotif diletakkan di bawah APM
Automotive Holdings Berhad (APM) dan Bahagian Bukan
Motor di bawah Warisan TC Holdings Berhad (Warisan).
Selepas itu, APM dan Warisan telah disenaraikan di
Bursa Saham Kuala Lumpur pada 15 Disember 1999.
Saya yakin bahawa struktur korporat baru ini akan
mempertingkatkan lagi fokus pengurusan dan strategik
kedua-dua kumpulan tersebut. Penyenaraian APM dan
Warisan juga menyerlahkan nilai tersembunyi kepada
para pemegang saham sekalian.
Kumpulan baru ini yang mempunyai perniagaan teras
tunggal dalam pemasangan dan pengedaran automotif
akan mengorak langkah ke hadapan dengan perspektif
yang lebih mantap. Ia akan mempersiapkan dirinya untuk
menghadapi perubahan struktur yang akan berlaku
serta berbagai cabaran serta peluang lain yang akan
muncul berikutan penyatuan industri automotif,
isu AFTA dan pemulihan pasaran domestik.
The enhanced Nissan Serena
- an ideal recreational vehicle
Nissan Serena yang diperbaharui
- kenderaan rekreasi terkini
L A P O R A N ␣ P E N G E R U S I
1999 WAS A REMARKABLE YEAR AND
A TURNING POINT FOR THE GROUP.
1999 ADALAH SATU TAHUN MENGKAGUMKAN YANG
MEMBAWA TITIK PERUBAHAN KEPADA KUMPULAN.
5TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Nissan Cefiro Brougham V6
- breaking new grounds
Nissan Cefiro Brougham V6
- tahap keunggulan
yang baru
Nissan VQ V6 DOHC engine
- nominated one of the
world’s best engines
Enjin Nissan VQ V6 DOHC
- dicalonkan sebagai salah
satu enjin terbaik di dunia
1 9 9 9 G R O U P A C C O U N T SP R E S E N T A T I O N
With the completion of the Proposed Autoparts and
Non-Motor Schemes (“Demerger Scheme”) set out in
the Circular to Shareholders dated 29 September 1999
(“Circular”) during the fourth quarter of 1999,
the financial accounts of the Group had been prepared
to reflect that of the new corporate structure.
The operating results of the Group, therefore, were the
results of the Company and subsidiaries remaining in
the Group and excluded those of the Autoparts and
Non-Motor Divisions.
Arising from the above method of presentation of
accounts, dividends received from the subsidiaries under
the Autoparts and Non-Motor Divisions pursuant to
the internal re-organisation were shown as part of the
exceptional items for the period. The disposal by the
Company of its investments in APM and Warisan to the
Controlling Shareholders (as defined in the Circular) and
Bumiputera investors approved by Ministry of International
Trade and Industry (“MITI”) resulted in a surplus of
RM51 million for the year. This surplus was also included
as part of the exceptional items in the accounts.
The proceeds from the disposals were distributed as
dividends to shareholders of the Company.
P E M B E N T A N G A N A K A U NK U M P U L A N 1 9 9 9
Dengan penyelesaian cadangan penyusunan semula
Skim Alat Ganti Automotif dan Bukan Motor (“Skim
Pengasingan”) sepertimana yang dicatatkan dalam
Surat Pekeliling kepada Pemegang Saham Syarikat
bertarikh 29 September 1999 pada suku keempat 1999,
akaun kewangan kumpulan telah disediakan untuk
memberi gambaran struktur korporat baru ini.
Justeru itu, keputusan Kumpulan hanya meliputi
keputusan Syarikat dan syarikat-syarikat subsidiari
yang kekal dalam Kumpulan dan tidak termasuk
keputusan Bahagian Alat Ganti Automotif dan Bahagian
Bukan Motor.
Kaedah pembentangan akaun seperti di atas
menyebabkan dividen diterima daripada syarikat-
syarikat subsidiari di bawah Bahagian Alat Ganti
Automotif dan Bahagian Bukan-Motor berhubung
dengan penyusunan semula organisasi dalaman ini
ditunjukkan sebagai sebahagian daripada perkara
terkecuali bagi tempoh ini. Pelupusan pelaburan syarikat
dalam APM dan Warisan kepada Pemegang Saham
Memegang Kawalan (seperti yang diterangkan dalam
Surat Pekeliling Saham) dan Pelabur Bumiputera yang
diluluskan oleh Kementerian Perdagangan Antarabangsa
R E P O R T
5TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
6 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
TOTAL ASSETS
JUMLAH ASET
The comparative figures for the cumulative
period were restated accordingly, in line with
the current year presentation.
R E V I E W O F R E S U L T S
Passenger and light commercial vehicles
Demand for new motor vehicles improved
with the return of consumer confidence.
Based on the registration statistics, the total
industry volume for 1999 of 288,547 units
represented a 76% increase from 1998.
For the year as a whole, total unit sales of
Nissan passenger and light commercial vehicles
was about double that achieved in 1998.
Nissan’s sales volume received a boost after
the second half of 1999 with the launch of the
new facelift Nissan C22 Vanette in July 1999.
The Nissan Cefiro 2.0L V6 Excimo and Cefiro
3.0L V6 Brougham introduced in early 1999
with fresh new looks and attractive pricing
were very well received and helped to propel
Nissan’s market share in the 2 to 3 liter capacity
passenger car segment to a respectable 12%.
Nissan’s Serena MPV and Sentra Super Saloon
models continued to enjoy good following in
their respective segments. Consequently, their
sales volume increased in tandem with the
overall market.
With further improvement in business
conditions, the fourth quarter saw the
implementation of further price increases
for several Nissan vehicle models and the
introduction of the new facelift Serena.
Riding on a recovering market, the Group
further intensified its marketing promotional
activities.
dan Industri (MITI) telah menghasilkan lebihan
sebanyak RM51 juta pada tahun ini. Lebihan
ini juga meliputi sebahagian daripada perkara
terkecuali dalam akaun ini. Kutipan daripada
penjualan ini telah diagihkan sebagai dividen
kepada para pemegang saham Syarikat.
Angka-angka perbandingan bagi tempoh
terkumpul telah dinyatakan semula sewajarnya,
selaras dengan pembentangan tahun semasa.
T I N J A U A N K E P U T U S A N
Kenderaan penumpang dan
perdagangan ringan
Pengembalian keyakinan pengguna telah
mendorong peningkatan permintaan untuk
kenderaan bermotor baru. Statistik pendaftaran
menunjukkan jumlah volum dalam industri
sebanyak 288,547 unit pada tahun 1999
merupakan lonjakan sebanyak 76% daripada
pencapaian tahun 1998. Jumlah unit jualan
kenderaan penumpang dan perdagangan
ringan Nissan bagi tahun ini secara
keseluruhannya meningkat sekali ganda
berbanding pada tahun 1998.
Volum jualan Nissan melonjak selepas tempoh
setengah tahun kedua 1999 berikutan
pelancaran Nissan C22 Vanette berwajah baru
pada bulan Julai 1999. Nissan Cefiro 2.0L V6
Excimo dan Cefiro 3.0L V6 Brougham yang
diperkenalkan pada awal tahun 1999 dengan
wajah baru dan harga yang menarik juga
mendapat sambutan yang amat menggalakkan
dan membantu mempertingkatkan bahagian
pasaran Nissan dalam segmen kereta
penumpang kapasiti 2 hingga 3 liter kepada
12%. Model Nissan Serena MPV dan Sentra
Super Saloon terus menarik minat orang ramai
dalam segmen masing-masing. Justeru itu,
volum jualan masing-masing meningkat selaras
dengan peningkatan pasaran keseluruhan.
999897
RM
mil
lio
n /
RM
ju
ta
1,19
7
1,01
9
934
Nissan Diesel
Prime Mover
complete with
curtainsider body
‘Nissan Diesel
Prime Mover’
dilengkapi
dengan badan
‘curtainsider’
7TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
New look Vanette introduced in 1999
Vanette berwajah baru yang
diperkenalkan pada tahun 1999
Medium and heavy commercial vehicles
In late 1997, the Group began its involvement
in the medium capacity (5 to 7 ton) truck
segment with the introduction of 2 medium-
duty truck models. The total industry volume
for the medium-duty trucks was about 3,900
units in 1999, an increase of 86% from 1998.
Our sale of Nissan Diesel trucks in this capacity
range jumped to 305 from the previous 39 units
after we successfully re-shaped the distribution
structure of the business unit to strengthen its
coverage in the new arena.
The heavy-duty range with a total industry
volume of about 1,500 units showed no
increase over the previous year as the industry
continued to be plagued with excess capacity.
Our share was maintained at about 24% of
total market. This business unit successfully
achieved the primary objective to bring
inventory to a healthy level during the year
partly through exports. Given the depressed
market and excess inventory carried by
various distributors, profit margin was low.
With adequate provisions previously made in
respect of slow moving stocks, this business unit
managed to report a small profit for the year.
Vehicle assembly
In anticipation of further increase in demand,
various programmes were implemented to
step up productivity and efficiency in the
assembly plant. Shopfloor management
courses were organised to inculcate good
shopfloor practices and to seek continuous
improvements in Quality, Cost and Delivery
targets. The management also conducted
Keadaan perniagaan yang semakin bertambah
baik telah membolehkan kenaikan harga
selanjutnya dilaksanakan bagi beberapa model
kenderaan Nissan dan pengenalan Serena
berwajah baru pada suku keempat tahun ini.
Kumpulan telah memperhebatkan bagi aktiviti
promosi pemasarannya sejajar dengan
pemulihan di pasaran.
Kenderaan perdagangan sederhana
dan berat
Kumpulan telah memulakan penglibatannya
ke dalam segmen trak berkapasiti sederhana
(5 hingga 7 tan) melalui pengenalan 2 model
trak bermuatan sederhana pada lewat 1997.
Jumlah volum industri bagi trak bermuatan
sederhana mencapai angka kira-kira 3,900 unit
pada tahun 1999, meningkat 86% daripada
pencapaian tahun 1998. Jualan trak Nissan
Diesel dalam kapasiti ini pula melonjak
daripada 39 unit pada tahun sebelumnya
kepada 305 unit pada tahun ini selepas struktur
pengedaran unit perniagaan tersebut berjaya
disusun semula bagi mengukuhkan liputannya
dalam bidang ini.
Volum trak bermuatan berat dalam industri
sebanyak 1,500 unit tidak menunjukkan
sebarang pertambahan daripada pencapaian
pada tahun sebelumnya kerana industri ini
terus dilanda masalah lebihan kapasiti.
Kami telah mengekalkan bahagian pasaran
kami sebanyak kira-kira 24% daripada jumlah
pasaran. Unit perniagaan ini berjaya mencapai
objektif utamanya untuk memastikan inventori
berada di paras yang sihat pada tahun itu
dengan sebahagiannya melalui pasaran
eksport. Margin keuntungan yang diperolehi
rendah kerana keadaan pasaran lembab dan
lebihan inventori yang disimpan oleh berbagai
pengedar. Dengan peruntukan yang mencukupi
disediakan sebelumnya berhubung dengan stok
yang lambat laris, unit perniagaan ini mampu
melaporkan keuntungan kecil pada tahun ini.
CAPITAL & RESERVES
MODAL & RIZAB
999897
RM
mil
lio
n /
RM
ju
ta
704
734
747
7TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
8 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
a review of the flexible manufacturing systems
to enable production lines to take in a wider
model range.
Financial performance
During the course of the year, the Group took
progressive steps to revise upward prices of
certain vehicle models to cushion the impact
of higher costs of new components imported
under the prevailing yen exchange rate.
The higher production volume lowered unit
production cost as compared to that in the
previous year. Coupled with the cost cutting
measures implemented in 1998, the Group
registered a pre-tax profit (excluding
exceptional items) of RM75 million as against
a loss of RM13.7 million of the previous year.
The balance sheet position of the Group after
the Demerger Scheme continued to be very
sound with a net cash position of about
RM150 million (after deducting proposed
dividends) as at year end. The Group had the
capacity to fund higher business volume from
internal sources of funds before resorting to
external financing. The RM147.5 million fixed
rate term loans were repaid during the year.
D I V I D E N D S
Pursuant to the Demerger Scheme, the
following dividends had been announced
and paid:
a. Special Dividend in Cash (Dividend No. I)
amounting to RM94,617,600 paid on
26 November 1999.
Pemasangan kenderaan
Sebagai persediaan awal kepada pertambahan
permintaan selanjutnya, berbagai program
telah dilaksanakan untuk mempertingkatkan
lagi produktiviti dan kecekapan loji pemasangan.
Kursus pengurusan bengkel dianjur bagi
memupuk amalan bengkel yang baik dan
mencapai matlamat keberkesanan dari segi
Kualiti, Kos dan Penyerahan. Pengurusan turut
menjalankan semakan semula terhadap
sistem pengilangan yang fleksibel untuk
membolehkan barisan pengeluaran memasang
lebih banyak model pada masa yang sama.
Prestasi Kewangan
Sepanjang tahun ini, Kumpulan telah
mengambil langkah progresif bagi menaikkan
harga beberapa model kenderaan bagi
membendung kesan kos komponen baru
yang diimport di bawah kadar pertukaran
semasa matawang yen. Volum pengeluaran
yang lebih tinggi telah mengurangkan kos
pengeluaran seunit berbanding pada tahun
sebelumnya. Dengan langkah penjimatan
kos yang dilaksanakan pada tahun 1998,
Kumpulan berjaya mencatatkan keuntungan
sebelum cukai (tidak termasuk perkara
terkecuali) sebanyak RM75 juta berbanding
kerugian sebanyak RM13.7 juta pada tahun
sebelumnya.
Kedudukan Kunci Kira-kira Kumpulan kekal
mantap selepas langkah pengasingan.
Kedudukan tunai bersihnya pada akhir tahun
ini adalah sebanyak RM150 juta (selepas
menolak dividen dicadangkan). Kumpulan
mempunyai kapasiti untuk membiayai volum
perniagaan yang lebih tinggi daripada
sumber dana dalamannya sebelum sumber
pembiayaan dari luar diperlukan. Jumlah
sebanyak RM147.5 juta pinjaman berjangka
telah dijelaskan pada tahun ini.
PROFIT/(LOSS) AFTER TAXexcluding exceptional items
KEUNTUNGAN/(KERUGIAN)SELEPAS CUKAItidak termasuk perkara terkecuali
999897
RM
mil
lio
n /
RM
ju
ta
172
(21) 75
Nissan Diesel Luxury
Air Suspension Coach
Koc Suspensi Udara
Mewah Nissan Diesel
9TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
b. Special Dividend in Specie (Dividend No. II)
amounting to RM114,515,906 paid on
1 December 1999.
c. Special Dividend in Specie (Dividend No. III)
amounting to RM38,403,084 paid on
1 December 1999.
d. Special Dividend in Cash (Dividend No. IV)
amounting to RM49,972,620 paid on
25 February 2000.
There remains an amount of RM91,953,780
or approximately RM136.84 for every 1,000
ordinary shares of RM0.50 each held in the
Company which will be paid on 19 May 2000.
With this payment, all the distributions
relating to the Demerger Scheme would have
been completed.
C U R R E N T Y E A R P R O S P E C T S
Apart from the general economic climate in
the country, the strength of the yen will have
a direct impact on the results of the Group
given its current inventory level. The effects
of these factors were partly reflected in the
fourth quarter 1999 results.
The current momentum of growth in the
motor vehicle market is expected to continue
into 2000. Several motor distributors have
already announced the introduction of new
models during the year to capitalise on the
market strength. The Group will similarly have
D I V I D E N
Berhubung dengan langkah pengasingan yang
dijalankan, dividen berikut telah diumumkan
dan dibayar:
a. Dividen Khas dalam Tunai (Dividen No. I)
berjumlah RM94,617,600 dibayar pada
26 November 1999.
b. Dividen Khas dalam Specie (Dividen No. II)
berjumlah RM114,515,906 dibayar pada
1 Disember 1999.
c. Dividen Khas dalam Specie (Dividen No. III)
berjumlah RM38,403,084 dibayar pada
1 Disember 1999.
d. Dividen Khas dalam Tunai (Dividen No. IV)
berjumlah RM49,972,620 dibayar pada
25 Februari 2000.
Masih terdapat baki berjumlah RM91,953,780
atau lebih kurang RM136.84 bagi setiap 1,000
saham biasa berharga RM0.50 sesaham dimiliki
dalam syarikat yang akan dibayar pada
19 Mei 2000. Dengan bayaran dividen ini,
semua pengagihan yang berkaitan dengan
langkah pengasingan yang dijalankan telah
disempurnakan.
P R O S P E K T A H U N S E M A S A
Selain daripada iklim ekonomi umum
di negara ini, keteguhan nilai Yen akan
memberi kesan langsung ke atas keputusan
Kumpulan berdasarkan tahap inventori
semasanya. Kesan faktor-faktor ini boleh
dilihat sebahagiannya melalui keputusan
suku keempat 1999.
Momentum pertumbuhan semasa dalam
pasaran kenderaan bermotor akan berterusan
pada tahun 2000. Beberapa pengedar
kenderaan bermotor telah mengumumkan
pengenalan model baru pada tahun ini bagi
merebut peluang daripada keteguhan pasaran.
Kumpulan juga akan melipatgandakan
NET TANGIBLE ASSETSPER SHARE (RM0.50 par value)
ASET KETARA BERSIH SESAHAM(RM0.50 nilai tara)
999897
Se
n
105
109
111
Nissan Terrano 4WD - built to
conquer any terrain
Nissan Terrano Pacuan 4 Roda - direka
untuk menguasai sebarang muka
bumi yang mencabar
9TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
10 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
to step up its effort in the relevant areas to
improve its market position.
Demand for the heavy commercial vehicles
is expected to improve and will very
much depend on the growth rate of the
transportation and construction sectors.
Barring unforeseen circumstances, the
operating performance of the Group is
expected to remain satisfactory.
C O R P O R A T E D E V E L O P M E N T
As at 31 December 1999, the Company
continued to hold the balance shares in
APM and Warisan not acquired by Bumiputera
investors approved by MITI (“Bumiputera
Investors”). These investments were carried
at cost and disclosed as long term investments
in the balance sheet.
The balance shares in APM and Warisan,
which were to be disposed of to the Bumiputera
Investors within one year from the listing of
APM and Warisan, had been fully disposed of
at the date of this report. With the completion
of this disposal, an exceptional gain of about
RM32 million would be recorded for the
current year. The proceeds from the disposal
of the balance shares will be distributed to the
shareholders of the Company on 19 May 2000
as mentioned earlier. The payment of this
dividend marks the completion of the
Demerger Scheme.
EARNINGS PER SHAREexcluding exceptional items(RM0.50 par value)
PENDAPATAN SESAHAMtidak termasuk perkara terkecuali(RM0.50 nilai tara)
Se
n
25 (3)
11
999897
usahanya dalam bidang-bidang berkaitan untuk
mempertingkatkan kedudukan pasarannya.
Permintaan bagi kenderaan perdagangan
berat dijangka akan bertambah baik dan
akan bergantung sebahagiannya kepada
kadar pertumbuhan sektor pengangkutan
dan pembinaan.
Jika tidak berlaku sebarang keadaan di luar
jangkaan, prestasi operasi Kumpulan diramal
akan kekal memuaskan.
P E R K E M B A N G A N K O R P O R A T
Setakat 31 Disember 1999, Syarikat masih
memegang baki saham dalam APM dan
Warisan yang belum diambil oleh para
pelabur Bumiputera yang diluluskan oleh
MITI. Pelaburan ini dicatatkan pada kos dan
dinyatakan sebagai pelaburan jangka panjang
dalam kunci kira-kira.
Baki saham dalam APM dan Warisan yang akan
dijual kepada para Pelabur Bumiputera dalam
tempoh setahun dari penyenaraian APM dan
Warisan telah dijual sepenuhnya pada tarikh
laporan ini. Kumpulan akan mencatatkan
keuntungan terkecuali sebanyak kira-kira
RM32 juta. Di bawah langkah pengasingan
yang dijalankan, kutipan daripada pelupusan
baki saham ini akan diagihkan kepada para
pemegang saham Syarikat pada 19 Mei 2000
seperti yang disebutkan sebelumnya.
Pembayaran dividen ini menandakan
penyelesaian Skim Pengasingan.
TURNOVER
PEROLEHAN
999897
RM
mil
lio
n /
RM
ju
ta
1,86
1
483
946
11TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Our commitment
to total customer
satisfaction
Iltizam kami
terhadap kepuasan
penuh pelanggan
A C K N O W L E D G E M E N T
On behalf of the Board, I wish to extend our appreciation
to the management and staff for their dedication and
contribution as always. I would also like to thank all
our valued customers, suppliers, bankers and other
business associates as well as our shareholders for
their continuing support.
DATO’ TAN KIM HOR DPMS, KMN, JP
Chairman / Pengerusi
Kuala Lumpur
3 April 2000
P E N G H A R G A A N
Saya bagi pihak Lembaga Pengarah ingin menyampaikan
ucapan penghargaan kepada pengurusan dan kakitangan
di atas ketekunan dan sumbangan berterusan yang mereka
berikan. Saya ingin mengucapkan terima kasih kepada
semua pelanggan, pembekal, bank dan rakan-rakan dalam
perniagaan kami yang amat dihargai serta para pemegang
saham yang telah memberi sokongan berterusan.
Nissan Sentra - an entirely
new class of sedan
Nissan Sentra - peneraju
dalam kelas sedan
11TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
12 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Listing O F ␣ N E Ware spin-off
companies of Tan Chong Motor Holdings Berhad, the result of the rationalisation and demerger of its Autoparts and Non-Motor
Divisions (“Demerger Scheme”).
Admitted to the Main Board of Kuala Lumpur Stock Exchange by Introduction on 15 December 1999 – the first twin listing for KLSE, and
also, the last for the millennium – both companies made impressive debuts, recording among the highest premiums for the year.
I N T R O D U C T I O N S T A T I S T I C S
APM Automotive Warisan TC
Holdings Berhad Holdings Berhad
Authorised Capital RM300,000,000 RM100,000,000
Number of ordinary shares of RM1.00 each in issue upon listing on KLSE 201,600,000 67,200,000
Shareholder’s entitlement for every 1,000 shares held in Tan Chong Motor
Holdings Berhad in addition to the RM352 cash pursuant to the
Demerger Scheme 150 shares 50 shares
Proforma Net Tangible Asset per share RM1.14 RM1.16
Opening Price on 15 December 1999 RM4.50 RM4.50
Closing Price on 15 December 1999 RM2.61 RM3.18
Earnings per share for financial year ended 31 December 1999 17.1 sen 29.0 sen
A P M A U T O M O T I V E H O L D I N G S B E R H A D A N D W A R I S A N T C H O L D I N G S B E R H A D
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W A R I S A N T C H O L D I N G S B E R H A DD a i l y S h a r e P r i c e s & V o l u m e T r a d e d o n K L S E
Share Price(RM)
Volume Traded(Million)
CompositeIndex
12/1
5/99
12/2
7/99
01/1
1/00
01/2
5/00
02/0
9/00
02/2
1/00
03/0
6/00
03/3
1/00
03/2
1/00
0
0.6
1.2
1.8
2.4
3.0
3.6
0
0.6
1.2
1.8
2.4
3.0
3.6
0
200
400
600
800
1000
1200
Volume Traded(number of shares traded for the day)
Share Price(closing price for the day)
KLSE Composite Index(closing index for the day)
A P M A U T O M O T I V E H O L D I N G S B E R H A DD a i l y S h a r e P r i c e s & V o l u m e T r a d e d o n K L S E
Share Price(RM)
Volume Traded(Million)
CompositeIndex
0
2
4
6
8
10
12
12/1
5/99
12/2
7/99
01/1
1/00
01/2
5/00
02/0
9/00
02/2
1/00
03/0
6/00
03/3
1/00
03/2
1/00
0
0.6
1.2
1.8
2.4
3.0
3.6
0
200
400
600
800
1000
1200
Volume Traded(number of shares traded for the day)
Share Price(closing price for the day)
KLSE Composite Index(closing index for the day)
C O M PA N I E S
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Directors’ Report 18
Statutory Declaration 23
Report of the Auditors to the Members 24
Consolidated Balance Sheet 25
Consolidated Profit & Loss Account 26
Consolidated Balance Sheet 27
(In US$ Equivalent)
Consolidated Profit & Loss Account 28
(In US$ Equivalent)
Balance Sheet 29
Profit & Loss Account 30
Consolidated Cash Flow Statement 31
Notes to the Accounts 33
Financial Statements
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18 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
The directors have pleasure in submitting their report and the audited accounts of the Group and of the Company for the year ended
31 December 1999.
P R I N C I P A L A C T I V I T I E S
The principal activities of the Company during the year consist of investment holding and the provision of management services to
companies in the Group whilst the principal activities of the subsidiary companies are as stated in Note 10 to the accounts.
There have been no significant changes in the nature of these activities during the year.
R E S U L T SGroup Company
RM’000 RM’000
Profit for the year after taxation and minority interests 310,973 448,593
Unappropriated profits brought forward 396,464 62,523
Profits available for appropriation 707,437 511,116
Appropriation:
Dividends (297,509) (297,509)
Unappropriated profits carried forward 409,928 213,607
D I V I D E N D S
The amounts paid by way of dividends by the Company since the end of the previous financial year pursuant to the TCMH Scheme (refer
to Notes (b), (c) and (d) under ‘Significant Events During The Year’) were:
i) Special Dividend in Cash (Dividend No. I) amounting to RM94,617,600 was paid on 26 November 1999;
ii) Special Dividend in Specie (Dividend No. II) amounting to RM114,515,906 was paid on 1 December 1999;
iii) Special Dividend in Specie (Dividend No. III) amounting to RM38,403,084 was paid on 1 December 1999; and
iv) Special Dividend in Cash (Dividend No. IV) amounting to RM49,972,620 was paid on 25 February 2000.
Apart from the distributions made pursuant to the TCMH Scheme, the directors do not recommend the payment of any dividend for the
year under review.
R E S E R V E S A N D P R O V I S I O N S
There were no material transfers to or from reserves or provisions during the year other than those disclosed in the accounts.
Directors’ Report
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19TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Directors’ Report (Cont’d)
D I R E C T O R S O F T H E C O M P A N Y
Directors who served since the date of the last report are:
Dato’ Tan Kim Hor
Ahmad bin Abdullah
Dato’ Tan Heng Chew
Tan Eng Soon
Azman bin Badrillah
Geh Cheng Hooi
Yoshi Iwashita
Dato’ Ng Mann Cheong
The shareholdings in the Company of those who were directors at year end are as follows:
Balance at Balance at
Name 1.1.1999 Acquired Sold 31.12.1999
Ordinary shares of RM0.50 each
Dato’ Tan Kim Hor
– direct interest 3,074,834 – – 3,074,834
– deemed interest 304,266,662 – – 304,266,662
Dato’ Tan Heng Chew
– direct interest 25,662 – – 25,662
– deemed interest 304,266,662 – – 304,266,662
Tan Eng Soon
– direct interest 1,400,000 – – 1,400,000
– deemed interest 304,266,662 – – 304,266,662
Azman bin Badrillah
– direct interest 8,000 – – 8,000
Dato’ Tan Kim Hor, Dato’ Tan Heng Chew and Tan Eng Soon are deemed interested in the shares of the subsidiaries of the Company by
virtue of their shareholdings in the Company. Details of their deemed shareholdings in non-wholly owned subsidiaries are shown in Note
10.1 of the accounts.
In accordance with Article 101 of the Company’s Articles of Association, Dato’ Tan Heng Chew and Azman bin Badrillah retire by rotation
from the Board at the Annual General Meeting and, being eligible, offer themselves for re-election.
Dato’ Tan Kim Hor who is over the age of seventy years, retires under Section 129 of the Companies Act, 1965 and seeks re-appointment
under the provision of Section 129(6) of the said Act to hold office until the next Annual General Meeting.
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20 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Directors’ Report (Cont’d)
D I R E C T O R S ’ B E N E F I T S
Since the end of the previous financial year, no director of the Company has received or become entitled to receive any benefit (other
than a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in the accounts) by
reason of a contract made by the Company or a related company 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, other than certain directors who have interest in companies which
traded with certain related companies in the ordinary course of business, rental payable by a related company to companies in which
certain directors have significant financial interest, advances to and from certain companies in which certain directors have significant
financial interest and legal fees paid to a director by the Company for professional services rendered.
There were no arrangements during and at the end of the year which had the object of enabling directors of the Company to acquire
benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate other than the rights given
to Ahmad bin Abdullah and Azman bin Badrillah to purchase ordinary shares of RM1.00 each in APM Automotive Holdings Berhad
(“APM”) and Warisan TC Holdings Berhad (“WTCH”) held by the Company at RM1.74 and RM1.82 per ordinary share respectively
as follows:
Number of shares of RM1.00 each
Allocated and Balance at
Name accepted Purchased 31.12.1999
APM Automotive Holdings Berhad (“APM”)
Ahmad bin Abdullah 13,235,000 – 13,235,000
Azman bin Badrillah 13,235,000 (2,150,000) 11,085,000
26,470,000 (2,150,000) 24,320,000
Warisan TC Holdings Berhad (“WTCH”)
Ahmad bin Abdullah 4,000,000 – 4,000,000
As a condition for the listing of APM and WTCH on the Kuala Lumpur Stock Exchange, the Company was required to dispose of 30% of
the shares in APM and WTCH amounting to 60,480,000 and 20,160,000 ordinary shares of RM1.00 each respectively to Bumiputera investors
approved by the Ministry of International Trade and Industry (“MITI”). The above directors were among the Bumiputera investors
approved by the MITI to purchase these shares.
S I G N I F I C A N T E V E N T S D U R I N G T H E Y E A R
In December 1999, the Company completed the reorganisation and demerger of its Autoparts and Non-Motor Divisions (“TCMH Scheme”)
the details of which were set out in the Circular To Shareholders dated 29 September 1999. The TCMH Scheme was approved by the
shareholders of the Company in an Extraordinary General Meeting held on 14 October 1999.
The TCMH Scheme comprised the following steps:
(a) An internal reorganisation of the Autoparts and Non-Motor Divisions involving the re-grouping of companies comprising the
Autoparts and Non-Motor Divisions under intermediate holding vehicles, APM and WTCH respectively, and the granting of rights
to allotment (“RTAs”) of 201,599,999 and 67,199,999 ordinary shares of RM1.00 each in APM and WTCH respectively to the Company.
(b) The Company paid special net dividends in specie (Dividends No. II and III) totalling RM152,918,990 or approximately 45.51% per
TCMH share to the Company’s shareholders, which was satisfied by the renunciation to the Company’s shareholders of the RTAs
of 50% of the enlarged share capital in APM and WTCH respectively.
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21TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Directors’ Report (Cont’d)
(c) The Company disposed of 20% of the equity interest in APM and WTCH respectively to Parasand Ltd. (“the Controlling
Shareholders”) represented by the RTAs of 40,320,000 ordinary shares of RM1.00 each in APM and 13,440,000 ordinary shares of
RM1.00 each in WTCH at RM1.74 and RM1.82 per ordinary share respectively for cash. The Company received a total cash
consideration of RM94,617,600 from the Controlling Shareholders for the disposals.
(d) The Company is to dispose of 30% of the equity interest in APM and WTCH respectively comprising the RTAs of 60,480,000 and
20,160,000 ordinary shares of RM1.00 each in APM and WTCH respectively to Bumiputera investors approved by MITI at RM1.74
and RM1.82 per ordinary share respectively for cash, in order to comply with the National Development Policy. The Company will
receive a total of RM141,926,400 in cash upon full disposal of the equity interest to the Bumiputera investors. As at 31 December
1999, the Company disposed of 9.7% and 13.04% of the equity interest in APM and WTCH respectively to the Bumiputera investors
for a total cash consideration of RM34,023,960 and RM15,948,660 respectively.
(e) The entire issued and paid-up share capital of APM and WTCH comprising 201,600,000 and 67,200,000 ordinary shares of RM1.00
each respectively were listed on the Main Board of the Kuala Lumpur Stock Exchange on 15 December 1999.
(f) The total cash proceeds of RM236,544,000 from the disposals will be distributed entirely to the shareholders of the Company on
a pro-rata basis by way of special dividends. As at 31 December 1999, the Company had distributed RM94,617,600 to the
shareholders of the Company by way of a special dividend in cash (Dividend No. I) and another payment of special dividend in cash
(Dividend No. IV) of RM49,972,620 was paid on 25 February 2000.
S I G N I F I C A N T P O S T B A L A N C E S H E E T E V E N T
On 24 March 2000, the Company completed the disposal of the remaining equity interest in APM and WTCH to the Bumiputera investors
approved by the MITI.
The equity interest of 20.3% and 16.96% in APM and WTCH respectively comprising 40,926,000 and 11,397,000 ordinary shares of RM1.00
each in APM and WTCH respectively were disposed of at RM1.74 and RM1.82 per ordinary share respectively for cash. The Company received
a total cash consideration of RM91,953,780 from the disposals and recorded an exceptional surplus of RM32,432,770 from the disposals.
The cash proceeds will be distributed entirely to the shareholders of the Company on a pro-rata basis by way of special dividend in cash
(Dividend No. V), which will be paid on 19 May 2000.
I S S U E O F S H A R E S A N D D E B E N T U R E S
There were no changes in the issued and paid-up capital of the Company during the year.
O P T I O N S G R A N T E D O V E R U N I S S U E D S H A R E S A N D D E B E N T U R E S
No options were granted to any person to take-up unissued shares/stocks and debentures of the Company during the year.
O T H E R S T A T U T O R Y I N F O R M A T I O N
Before the accounts of the Group and of the Company were made out, the directors took reasonable steps to ascertain that:
i) all known bad debts have been written off and adequate provision made for doubtful debts, and
ii) all current assets have been stated at the lower of cost and net realisable value.
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22 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
At the date of this report, the directors of the Company are not aware of any circumstances:
i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the Group and in
the Company inadequate to any substantial extent, or
ii) that would render the value attributed to the current assets in the Group and in the Company accounts misleading, or
iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the
Company misleading or inappropriate, or
iv) not otherwise dealt with in this report or the accounts, that would render any amount stated in the accounts of the Group and
of the Company misleading.
At the date of this report there does not exist:
i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the
liabilities of any other person, or
ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year.
No contingent liability or other liability has become enforceable, or is likely to become enforceable within the period of twelve months
after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Group or of
the Company to meet their obligations as and when they fall due.
In the opinion of the directors:
i) except for the exceptional items as disclosed in Note 22 to the accounts, the results of the operations of the Group and of the
Company for the financial year ended 31 December 1999 have not been substantially affected by any item, transaction or event
of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that
financial year and the date of this report except for the exceptional surplus from the disposals of the remaining equity interest
in APM and WTCH to the Bumiputera investors approved by MITI as disclosed in Note 31, and
ii) the accounts of the Group and of the Company set out on pages 25 to 57, except for pages 27 and 28 which are expressed in US$,
are drawn up in accordance with applicable approved accounting standards in Malaysia so as to give a true and fair view of the
state of affairs of the Group and of the Company as at 31 December 1999 and of the results of their operations and cash flows of
the Group for the year ended on that date.
A U D I T O R S
The retiring auditors, Messrs KPMG (formerly known as KPMG Peat Marwick), have indicated their willingness to accept re-appointment.
Signed in accordance with a resolution of the directors:
Dato’ Tan Kim Hor Ahmad bin Abdullah
Chairman Vice Chairman
Kuala Lumpur
3 April 2000
Directors’ Report (Cont’d)
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23TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Statutory Declaration
I, TAN ENG GUAN, being the officer primarily responsible for the financial management of TAN CHONG MOTOR HOLDINGS BERHAD, do
solemnly and sincerely declare that the accounts set out on pages 25 to 57, except for pages 27 and 28 which are expressed in US$, are,
to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and
by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed
TAN ENG GUAN at Kuala Lumpur in the Federal Territory
this 3rd day of April 2000.
Before me
MOHD RADZI BIN YASIN
No. W327
Commissioner for Oaths
(Pesuruhjaya Sumpah)
Kuala Lumpur
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24 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Report of the Auditors to the Members
We have audited the accounts set out on pages 25 to 57 except for pages 27 and 28 which are expressed in US$. The preparation of the
accounts is the responsibility of the Company’s directors. Our responsibility is to express an opinion on the accounts based on our audit.
We conducted our audit in accordance with approved Standards on Auditing in Malaysia. These standards require that we plan and
perform the audit to obtain all the information and explanations which we consider necessary to provide us with evidence to give
reasonable assurance that the accounts are free of material misstatement. An audit includes examining, on a test basis, evidence relevant
to the amounts and disclosures in the accounts. An audit also includes an assessment of the accounting principles used and significant
estimates made by the directors as well as evaluating the overall adequacy of the presentation of information in the accounts. We believe
our audit provides a reasonable basis for our opinion.
In our opinion:
(a) the accounts are properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable approved
accounting standards in Malaysia so as to give a true and fair view of:
i) the state of affairs of the Group and of the Company at 31 December 1999 and of the results of their operations and cash
flows of the Group for the year ended on that date; and
ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the accounts of the Group and of the
Company; and
(b) the accounting and other records and the registers required by the Companies Act, 1965 to be kept by the Company and the
subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the said Act.
The subsidiary company in respect of which we have not acted as auditors is identified in Note 10 to the accounts and we have considered
the accounts and the auditors’ report thereon except as mentioned in Note 10 to the accounts.
We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s accounts are in form and content
appropriate and proper for the purposes of the preparation of the consolidated accounts and we have received satisfactory information
and explanations required by us for those purposes.
None of the audit reports on the accounts of the subsidiaries were subject to any qualification nor included any comment made under
sub-section (3) of Section 174 of the Act.
KPMG
Firm Number: AF 0758
Public Accountants
NG KIM TUCK
Partner
Approval Number: 1150/03/02(J/PH)
Kuala Lumpur
3 April 2000
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25TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Consolidated Balance SheetAT 31 DECEMBER 1999
Note 1999 1998
RM’000 RM’000
SHARE CAPITAL 3 336,000 336,000
RESERVES 4 411,299 397,835
747,299 733,835
MINORITY INTERESTS 6,473 6,325
DEFERRED TAXATION 686 934
RETIREMENT BENEFITS 5,869 6,911
TERM LOANS (UNSECURED) 5 – 147,500
760,327 895,505
CURRENT LIABILITIES
Trade creditors 6 60,537 19,460
Other creditors and accruals 7 52,057 59,217
Short term borrowings (unsecured) 8 1,656 3,607
Taxation 9,537 41,324
Proposed dividend 49,973 –
173,760 123,608
934,087 1,019,113
FIXED ASSETS 9 211,868 216,422
ASSOCIATED COMPANIES 11 3,155 2,917
LONG TERM INVESTMENTS 12 59,521 152,919
OTHER INVESTMENTS 13 1,808 1,808
HIRE PURCHASE DEBTORS 14 34,522 28,678
CURRENT ASSETS
Stocks 15 290,092 367,515
Short term investment 16 100 –
Trade debtors 17 72,027 55,282
Hire purchase debtors 14 21,585 16,716
Other debtors, deposits and prepayments 18 34,840 83,460
Short term deposits 19 181,625 81,884
Cash and bank balances 22,944 11,512
623,213 616,369
934,087 1,019,113
The notes set out on pages 33 to 57 form an integral part of, and should be read in conjunction with, these accounts.
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26 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Consolidated Profit and Loss AccountFOR THE YEAR ENDED 31 DECEMBER 1999
Note 1999 1998
RM’000 RM’000
Turnover 20 946,331 483,228
Cost of sales 810,256 423,147
Operating profit/(loss) 21 74,869 (13,691)
Exceptional items 22 297,055 69,444
371,924 55,753
Share of profit of associated companies 283 73
Profit before taxation 372,207 55,826
Taxation – Operating profit 23 (70) (7,562)
– Exceptional items 23 (60,861) (19,444)
(60,931) (27,006)
Profit after taxation 311,276 28,820
Minority interests (303) 1,170
Profit attributable to members of the Company 310,973 29,990
Unappropriated profits brought forward 396,464 366,474
Profits available for appropriation 707,437 396,464
Appropriation:
Dividends 24 (297,509) –
Unappropriated profits carried forward 4.3 409,928 396,464
Unappropriated profits retained in:
Holding company 223,248 73,345
Subsidiary companies 184,150 320,872
Associated companies 2,530 2,247
409,928 396,464
Earnings per share including exceptional items (sen) 25 46.3 4.46
Earnings/(Loss) per share excluding exceptional items (sen) 25 11.1 (3.0)
The notes set out on pages 33 to 57 form an integral part of, and should be read in conjunction with, these accounts.
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27TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Consolidated Balance SheetAT 31 DECEMBER 1999
( IN US$ EQU IVA LEN T)
1999 1998
US$’000 US$’000
SHARE CAPITAL 88,654 88,654
RESERVES 108,522 104,970
197,176 193,624
MINORITY INTERESTS 1,708 1,669
DEFERRED TAXATION 181 246
RETIREMENT BENEFITS 1,549 1,824
TERM LOANS (UNSECURED) – 38,918
200,614 236,281
CURRENT LIABILITIES
Trade creditors 15,973 5,134
Other creditors and accruals 13,735 15,625
Short term borrowings (unsecured) 437 952
Taxation 2,516 10,903
Proposed dividend 13,186 –
45,847 32,614
246,461 268,895
FIXED ASSETS 55,902 57,103
ASSOCIATED COMPANIES 832 770
LONG TERM INVESTMENTS 15,705 40,348
OTHER INVESTMENTS 477 477
HIRE PURCHASE DEBTORS 9,109 7,567
CURRENT ASSETS
Stocks 76,542 96,970
Short term investment 26 –
Trade debtors 19,004 14,586
Hire purchase debtors 5,695 4,411
Other debtors, deposits and prepayments 9,193 22,021
Short term deposits 47,922 21,605
Cash and bank balances 6,054 3,037
164,436 162,630
246,461 268,895
The information presented on this page does not form part of the audited accounts of the Group. Figures for both 1999 and 1998 are converted into USdollars equivalent using the same exchange rate of RM3.79 = US$1.00, which approximates that prevailing on 31.12.1999.
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28 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Consolidated Profit and Loss AccountFOR THE YEAR ENDED 31 DECEMBER 1999
( IN US$ EQUIVALENT)
1999 1998
US$’000 US$’000
Turnover 249,692 127,501
Cost of Sales 213,788 111,648
Operating profit/(loss) 19,754 (3,612)
Exceptional item 78,379 18,323
98,133 14,711
Share of profit of associated companies 75 19
Profit before taxation 98,208 14,730
Taxation – Operating profit (19) (1,996)
– Exceptional items (16,058) (5,130)
(16,077) (7,126)
Profit after taxation 82,131 7,604
Minority interests (80) 309
Profit attributable to members of the Company 82,051 7,913
Unappropriated profits brought forward 104,608 96,695
Profits available for appropriation 186,659 104,608
Appropriation:
Dividends (78,498) –
Unappropriated profits carried forward 108,161 104,608
Unappropriated profits retained in:
Holding company 58,905 19,352
Subsidiary companies 48,588 84,663
Associated companies 668 593
108,161 104,608
Earnings per share including exceptional items (US cents) 12.2 1.2
Earnings/(Loss) per share excluding exceptional items (US cents) 2.9 (0.8)
The information presented on this page does not form part of the audited accounts of the Group. Figures for both 1999 and 1998 are converted into US
dollars equivalent using the same exchange rate of RM3.79 = US$1.00, which approximates that prevailing on 31.12.1999.
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29TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Balance SheetAT 31 DECEMBER 1999
Note 1999 1998
RM’000 RM’000
SHARE CAPITAL 3 336,000 336,000
UNAPPROPRIATED PROFITS 4.3 213,607 62,523
549,607 398,523
RETIREMENT BENEFITS 868 1,964
TERM LOANS (UNSECURED) 5 – 147,500
CURRENT LIABILITIES
Other creditors and accruals 4,550 3,993
Amount due to subsidiary companies 10 2,846 2,482
Taxation 5,732 5,732
Proposed dividend 49,973 –
63,101 12,207
613,576 560,194
FIXED ASSETS 9 1,191 844
SUBSIDIARY COMPANIES 10 307,090 257,256
LONG TERM INVESTMENTS 12 59,521 –
CURRENT ASSETS
Other debtors, deposits and prepayments 18 8,633 59,454
Amount due from subsidiary companies 10 216,790 141,835
Dividend receivable from subsidiary companies 10 15,000 100,000
Cash and bank balances 5,351 805
245,774 302,094
613,576 560,194
The notes set out on pages 33 to 57 form an integral part of, and should be read in conjunction with, these accounts.
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30 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Profit and Loss AccountFOR THE YEAR ENDED 31 DECEMBER 1999
Note 1999 1998
RM’000 RM’000
Turnover 20 406,312 863,476
Operating (loss)/profit 21 (5,077) 18,009
Exceptional items 22 559,448 1,222,536
Profit before taxation 554,371 1,240,545
Taxation – Operating profit 23 (195) (6,144)
– Exceptional items 23 (105,583) (222,351)
(105,778) (228,495)
Profit after taxation 448,593 1,012,050
Unappropriated profits brought forward 62,523 104,586
Profits available for appropriation 511,116 1,116,636
Appropriation:
Capitalisation for bonus issue 4.3 – (1,054,113)
Dividends 24 (297,509) –
(297,509) (1,054,113)
Unappropriated profits carried forward 4.3 213,607 62,523
The notes set out on pages 33 to 57 form an integral part of, and should be read in conjunction with, these accounts.
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31TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Consolidated Cash Flow StatementFOR THE YEAR ENDED 31 DECEMBER 1999
1999 1998
RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 372,207 55,826
Adjustments for:
Bad debts recovered (393) (91)
Bad debts written off 96 5
Surplus arising from the reorganisation and
demerger of Autoparts and Non-Motor Divisions (51,194) –
Deferred expenditure amortised/written off – 7
Depreciation and amortisation of fixed assets 11,449 12,349
Dividends received from companies in the APM Group and WTCH Group (245,861) –
Dividends received from other investments (353) –
Fixed assets written off 2 523
Gain on disposal of fixed assets (299) (352)
Interest expense 8,843 14,950
Interest income (7,232) (4,981)
Provision for doubtful debts 1,048 7,237
Provision for retirement benefits 1,191 1,605
Provision for slow moving stocks 3,326 17,298
Share of profit of associated companies (net of dividends received) (283) (73)
Stocks written off – 846
Write back of stocks written off (5,405) (5,265)
Write back of provision for doubtful debts (5,377) (547)
Write back of provision for slow moving stocks (6,790) (3)
Operating profit before working capital changes 74,975 99,334
Increase/(Decrease) in working capital:
Stocks 86,291 122,152
Trade debtors (12,119) 55,108
Other debtors, deposits and prepayments 50,083 (19,616)
Hire purchase debtors (10,713) 12,181
Amount due from associated companies 45 (897)
Trade creditors 41,077 (63,182)
Other creditors (7,160) (42,169)
Cash generated from operations 222,479 162,911
Interest paid (8,843) (14,950)
Interest received 7,232 4,981
Retirement benefits paid (2,233) (2,041)
Taxation paid (92,966) (88,972)
Net cash generated from operating activities 125,669 61,929
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32 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Consolidated Cash Flow Statement (Cont’d)
FOR THE YEAR ENDED 31 DECEMBER 1999
1999 1998
RM’000 RM’000
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of additional shares in associated company – (150)
Acquisition of short term investment (100) –
Dividends received from companies in the APM Group and WTCH Group 245,861 –
Dividends received from other investments 353 –
Net funds from minority interests – (51)
Proceeds from disposal of fixed assets 680 590
Proceeds from disposal of long term investments 144,592 –
Purchase of fixed assets (8,744) (12,470)
Net cash generated from/(used in) investing activities 382,642 (12,081)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to minority shareholders (151) (410)
Dividends paid to shareholders (247,536) (16,934)
Repayment of term loans (147,500) (10,000)
Net cash used in financing activities (395,187) (27,344)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CONSOLIDATION – 87
NET INCREASE IN CASH AND CASH EQUIVALENTS 113,124 22,591
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 89,789 67,198
CASH AND CASH EQUIVALENTS AT END OF YEAR 202,913 89,789
CASH AND CASH EQUIVALENTS COMPRISE:
Short term deposits 181,625 81,884
Cash and bank balances 22,944 11,512
Short term borrowings (1,656) (3,607)
202,913 89,789
The notes set out on pages 33 to 57 form an integral part of, and should be read in conjunction with, these accounts.
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33TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts31 DECEMBER 1999
1 . P R I N C I P A L A C T I V I T I E S
The principal activities of the Company during the year consist of investment holding and the provision of management services
to companies in the Group whilst the principal activities of the subsidiary companies are as stated in Note 10 to the accounts.
There have been no significant changes in the nature of these activities during the year.
2 . S I G N I F I C A N T A C C O U N T I N G P O L I C I E S
2.1 Basis of Preparation
The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain land
and buildings and certain investment in subsidiary companies, and in compliance with approved accounting standards in
Malaysia.
2.2 Basis of Consolidation
The Group accounts consolidate the audited accounts made up to 31 December 1999 of the Company and its subsidiary
companies remaining within the Group as at year end.
2.3 Depreciation
Freehold land is not amortised. Leasehold land is amortised over the period of the lease which ranges from 999 years to
34 years. All other fixed assets are depreciated on a straight line basis to write off the cost or valuation of each asset over
its estimated useful life.
The following annual depreciation rates are used by the Group:
Buildings 2% – 14%
Plant, machinery and equipment 10% – 50%
Furniture, fixtures, fittings and office equipment 10% – 50%
Motor vehicles 10% – 20%
It is the Group’s policy to state fixed assets at cost. Revaluation of certain properties in 1984 was carried out primarily for
the purpose of issuing bonus shares then and was not intended to effect a change in the accounting policy to one of
revaluation of properties.
The directors are of the opinion that the current market values of the revalued properties are no less than their net book
values as at 31 December 1999. The Group is following the transitional provisions to International Accounting Standard (IAS)
No. 16 on “Property, Plant and Equipment” as approved by the Malaysian Accounting Standards Board (“MASB“).
The transitional provisions allow the Group to retain the carrying amounts of the revalued assets on the basis of their
previous revaluations subject to continuity in their depreciation policy and the requirement to write an asset down to
its recoverable amount. Accordingly, the above valuations have not been updated.
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34 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
2 . S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C o n t ’ d )
2.4 Hire Purchase Revenue
Hire purchase revenue is recognised evenly over the period of repayment.
2.5 Deferred Taxation
Provision for deferred taxation is made under the liability method in respect of all material timing differences except where
no liability is expected to arise in the foreseeable future. Deferred tax benefits are only recognised where there is a
reasonable expectation of realisation in the near future.
2.6 Foreign Currencies
Assets and liabilities in foreign currencies are translated at exchange rates approximating those ruling at balance sheet date
or contracted rates where applicable. Transactions in foreign currencies during the year have been translated at rates
approximate to those prevailing on the transaction dates. Exchange differences arising from translations are included in
the operating results of the year.
On consolidation, the assets and liabilities of foreign incorporated subsidiary companies are translated into Ringgit Malaysia
at the exchange rates approximating those ruling at balance sheet date whilst the operating results are translated into
Ringgit Malaysia at the average rates of exchange for the year. The resulting difference arising from such translation is taken
to the Exchange Adjustment Account.
2.7 Stocks
Stocks are stated at the lower of cost and net realisable value.
Cost of assembled motor vehicles, work-in-progress and unassembled vehicle packs is determined at standard cost adjusted
for variances which approximates actual cost on a specific identification basis.
Cost of trading stocks is determined on the weighted average basis.
Work-in-progress, manufactured stocks and locally assembled vehicles include direct materials, labour and production
overheads.
2.8 Associated Company
An associated company is defined as a company, not being a subsidiary, in which the Group has a substantial interest (not
less than 20% of the equity) and in whose financial and operating policy decisions the Group exercises significant influence.
Investment in associated companies is stated at cost. Provision is made for any permanent diminution in value of the
investment.
The Group’s share of profits less losses of associated companies is included in the consolidated profit and loss account while
the Group’s share of post-acquisition retained profits and reserves is added to the carrying value of the investment in the
consolidated balance sheet.
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35TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
2 . S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C o n t ’ d )
2.9 Investments
Investments in subsidiary and associated companies are stated at cost or valuation determined by the Directors based on
the values of the underlying net tangible assets, after the revaluation of the properties of the subsidiary companies and was
carried out primarily for the purpose as explained in Note 2.3. A provision is made when the Directors are of the view that
there is a permanent diminution in their values.
Long term investments are stated at cost with a provision for permanent diminution when the Directors are of the view that
there is a permanent diminution in their values.
Short term unquoted investments are stated at the lower of cost and market value on an investment portfolio basis with
a specific write down for shares where permanent diminution has occurred.
2.10 Cash and Cash Equivalents in Cash Flow Statement
Cash and cash equivalents consist of cash on hand, balances with banks and short term, highly liquid investments with an
original maturity period of no more than three months that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash
equivalents are presented net of bank overdrafts.
3 . S H A R E C A P I T A L1999 1998
RM’000 RM’000
Authorised:
Ordinary shares of RM0.50 each
Balance at 1 January 500,000 400,000
Created during the year
– 2,308,226,000 new ordinary shares – 1,154,113
Capital reduction
– Cancellation of 2,108,226,000 new ordinary shares – (1,054,113)
Balance at 31 December 500,000 500,000
Issued and fully paid:
Ordinary shares of RM0.50 each
Balance at 1 January 336,000 336,000
Created during the year
– Bonus issue of 2,108,226,000 new ordinary shares at 3.137 new ordinary
shares for one (1) existing ordinary share – 1,054,113
Capital reduction
– Cancellation of 2,108,226,000 new ordinary shares – (1,054,113)
Balance at 31 December 336,000 336,000
The movements in share capital of the Company in the previous year were due to the rationalisation and demerger of its Foreign
Division.
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36 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
4 . R E S E R V E SGroup
1999 1998
RM’000 RM’000
Capital reserve (Note 4.1) 123 123
Exchange adjustment account (Note 4.2) 1,366 1,366
Reserve on consolidation (118) (118)
Unappropriated profits (Note 4.3) 409,928 396,464
411,299 397,835
4.1 Capital Reserve
Surplus on revaluation of properties
– non-distributable 23 23
Capitalisation of unappropriated profits
– distributable 100 100
123 123
4.2 Exchange Adjustment Account
Non-distributable:
Arising from translation of foreign subsidiary companies:
Balance at 1 January 1,366 1,279
Net movement from exchange adjustment – 87
Balance at 31 December 1,366 1,366
4.3 Unappropriated Profits
Group Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Distributable:
Balance at 1 January 396,464 366,474 62,523 104,586
Profit during the year 310,973 29,990 448,593 1,012,050
Capitalisation for bonus issue during the year – – – (1,054,113)
Dividends (297,509) – (297,509) –
Balance at 31 December 409,928 396,464 213,607 62,523
The Company has sufficient tax credits and tax exempt income to frank the payment of dividends out of all its unappropriated profits
at 31 December 1999.
Pursuant to the requirements of Section 365(1A) of the Companies Act, 1965, future distribution of profits as dividends will be
restricted to the greater of the profit after tax for a particular financial year and the average dividends declared in respect of the
two financial years immediately preceding that financial year.
Section 365(1A) was repealed pursuant to the Budget Proposals for Year 2000 on 29 October 1999. However, the restriction on
payment of dividends will still be applicable pending the gazette of the Bill by Parliament.
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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37TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
5 . T E R M L O A N S ( U N S E C U R E D )Group Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Repayable after one year – 147,500 – 147,500
The term loans of the Company borne interest at 8.55% (1998 – 8.55%) per annum and were fully repaid during the year.
6 . T R A D E C R E D I T O R S
Group
Included in trade creditors are amounts totalling RM10.567 million (1998 – RM4.178 million) and RM1.842 million (1998 – RM0.915
million) owing to certain companies of the APM and WTCH Groups respectively.
APM and WTCH Groups refer to companies in the APM Automotive Holdings Berhad (“APM”) Group and Warisan TC Holdings
Berhad (“WTCH”) Group respectively. The APM and WTCH Groups were previously subsidiary companies of the Tan Chong Motor
Holdings Berhad Group.
7 . O T H E R C R E D I T O R S A N D A C C R U A L S
Group
Included in other creditors and accruals are amounts totalling RM0.28 million (1998 – RM51.667 million) and RM0.344 million (1998
– RM16.367 million) owing to certain subsidiary companies of the APM and WTCH Groups respectively.
The amounts owing are non-trade in nature, unsecured and are subject to interest at negotiated rates.
8 . S H O R T T E R M B O R R O W I N G S ( U N S E C U R E D )Group
1999 1998
RM’000 RM’000
Bills payable 452 1,646
Bank overdrafts 1,204 1,961
1,656 3,607
Interest levied on short term borrowings of subsidiary companies is at 3.65% to 9.00% (1998 – 8.05% to 15.70%) per annum.
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38 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
9 . F I X E D A S S E T STaken
to Assets
At other written At
Group 1.1.1999 Additions Disposals debtors Transfers off 31.12.1999
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost/Valuation
Freehold land 63,971 1,029 – – – – 65,000
Long term leasehold land 75,866 875 – – – – 76,741
Short term leasehold land 6,798 – – – – – 6,798
Buildings 89,223 696 (42) – – – 89,877
Plant, machinery and
equipment 61,312 1,249 (35) – – – 62,526
Furniture, fixtures, fittings
and office equipment 30,301 1,439 (526) – 458 (68) 31,604
Motor vehicles 10,767 2,136 (1,588) – – – 11,315
Work-in-progress 3,003 1,320 – (1,465) (458) – 2,400
341,241 8,744 (2,191) (1,465) – (68) 346,261
___________ At 31.12.1999 ____________
1984
Cost Valuation Total
RM’000 RM’000 RM’000
Representing items:
Freehold land 23,683 41,317 65,000
Long term leasehold land 15,923 60,818 76,741
Short term leasehold land 6,160 638 6,798
Buildings 38,857 51,020 89,877
Plant, machinery and equipment 62,526 – 62,526
Furniture, fixtures, fittings and office equipment 31,604 – 31,604
Motor vehicles 11,315 – 11,315
Work-in-progress 2,400 – 2,400
192,468 153,793 346,261
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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39TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
9 . F I X E D A S S E T S ( C o n t ’ d )Taken
to Assets
At other written At
Group 1.1.1999 Additions Disposals debtors Transfers off 31.12.1999
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Accumulated depreciation
Freehold land – – – – – – –
Long term leasehold land 11,456 868 – – – – 12,324
Short term leasehold land 1,486 186 – – – – 1,672
Buildings 33,359 2,719 (2) – – – 36,076
Plant, machinery and
equipment 46,750 4,182 (24) – – – 50,908
Furniture, fixtures, fittings
and office equipment 23,830 1,960 (359) – – (66) 25,365
Motor vehicles 7,938 1,534 (1,424) – – – 8,048
Work-in-progress – – – – – – –
124,819 11,449 (1,809) – – (66) 134,393
Depreciation
charge for the
Net book value year ended
1999 1998 31 December 1998
RM’000 RM’000 RM’000
Group
Freehold land 65,000 63,971 –
Long term leasehold land 64,417 64,410 865
Short term leasehold land 5,126 5,312 240
Buildings 53,801 55,864 2,695
Plant, machinery and equipment 11,618 14,562 4,916
Furniture, fixtures, fittings and office equipment 6,239 6,471 2,146
Motor vehicles 3,267 2,829 1,487
Work-in-progress 2,400 3,003 –
211,868 216,422 12,349
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40 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
9 . F I X E D A S S E T S ( C o n t ’ d )
Assets
At written At
1.1.1999 Additions Disposals off 31.12.1999
Company RM’000 RM’000 RM’000 RM’000 RM’000
Cost
Buildings 690 – – – 690
Furniture, fixtures, fittings
and office equipment 386 50 – (27) 409
Motor vehicles 695 617 (695) – 617
1,771 667 (695) (27) 1,716
Accumulated depreciation
Buildings 69 14 – – 83
Furniture, fixtures, fittings
and office equipment 297 47 – (25) 319
Motor vehicles 561 174 (612) – 123
927 235 (612) (25) 525
Depreciation
charge for the
Net book value year ended
1999 1998 31 December 1998
RM’000 RM’000 RM’000
Buildings 607 621 14
Furniture, fixtures, fittings and office equipment 90 89 45
Motor vehicles 494 134 103
1,191 844 162
The net book value of the revalued fixed assets had they been stated at cost less accumulated depreciation calculated on original
cost as required by International Accounting Standard (IAS) No. 16 on “Property, Plant and Equipment” is not shown as the records
are not available since the revaluation was done in 1984.
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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41TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
1 0 . S U B S I D I A R Y C O M P A N I E SCompany
1999 1998
RM’000 RM’000
Unquoted shares
At cost 135,289 50,827
At Directors’ valuation in 1984 179,300 213,928
314,589 264,755
Provision for diminution in value of investment in subsidiary companies (7,499) (7,499)
307,090 257,256
Amount due from subsidiary companies 218,932 145,158
Provision for amount due from subsidiary companies (2,142) (3,323)
216,790 141,835
Dividends receivable from subsidiary companies 15,000 100,000
Amount due to subsidiary companies (2,846) (2,482)
Investments in subsidiary companies are stated at Directors’ valuation conducted in 1984 based on the net tangible assets value
of the subsidiary companies after the revaluation of their properties and was carried out primarily for the purpose as explained
in Note 2.3.
The amounts due to/from subsidiary companies are non-trade in nature, unsecured and are subject to interest at negotiated rates.
Details of subsidiary companies are as follows:
Name Principal activities Equity held
1999 1998
Incorporated in Malaysia: % %
Auto Blend Sdn Bhd Blending of battery water and brake fluid 100 100
Auto Components Manufacturers Sdn Bhd Property holding 100 100
Auto Infiniti Sdn Bhd Distribution of auto accessories 100 100
Ceranamas Sdn Bhd Property and investment holding 100 100
Cyberguard Vehicle Security Technologies Trading and marketing of car alarms 100 100
Sdn Bhd
Edaran Tan Chong Motor Sdn Bhd Distribution of motor vehicles 100 100
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42 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
1 0 . S U B S I D I A R Y C O M P A N I E S ( C o n t ’ d )
Name Principal activities Equity held
1999 1998
Incorporated in Malaysia (Cont’d): % %
Hikmat Asli Sdn Bhd Property holding 100 100
Pemasaran Alat Ganti Sdn Bhd Distribution of automotive spare parts 100 100
Perwiramas Sdn Bhd Investment holding 100 100
Rustcare Sdn Bhd Rust proofing 100 100
Sungei Bintang Sdn Bhd Property holding 100 100
Tan Chong & Sons Motor Co Sdn Bhd Distribution of motor vehicles 100 100
Tan Chong Agency Sdn Bhd Insurance agency and property holding 100 100
Tan Chong Ekspres Auto Servis Sdn Bhd Automotive workshop services 100 100
Tan Chong Industrial Equipment Distribution of commercial vehicles, 100 100
(Sabah) Sdn Bhd heavy equipment and machineries
Tan Chong Industrial Equipment Sdn Bhd Distribution of commercial vehicles 100 100
Tan Chong Motor Assemblies Sdn Bhd Assembly of motor vehicles 70 70
Tan Chong Trading (M) Sdn Bhd Distribution of automotive parts and accessories 100 100
Tanahku Holdings Sdn Bhd Property holding 100 100
TC Auto Tooling Sdn Bhd Fabrication of jigs and engineering services 100 100
TC Motors (Sarawak) Sdn Bhd Distribution of commercial vehicles, heavy 100 100
equipment and machineries
TCCL Sdn Bhd Insurance agency 100 100
TCM Stamping Products Sdn Bhd Manufacture of automotive press metal parts 100 100
Truckquip Sdn Bhd Distribution of automotive spare parts and 100 100
construction of vehicle bodies
TC Hartanah Sdn Bhd Property Holding 100 100
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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43TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
1 0 . S U B S I D I A R Y C O M P A N I E S ( C o n t ’ d )
Name Principal activities Equity held
1999 1998
Incorporated in Malaysia (Cont’d): % %
Vincus Holdings Sdn Bhd Investment holding 100 100
West Anchorage Sdn Bhd Investment holding 100 100
TCM Accessories Sdn Bhd Dormant 100 100
(formerly known as APM
Accessories Sdn Bhd)
Auto Research and Development Sdn Bhd Dormant 100 100
Auto Trucks & Components Sdn Bhd Dormant 100 100
Autokita Sdn Bhd Dormant 100 100
Fujiyama Car Cooler Sdn Bhd Dormant 100 100
Motor Image Enterprises Sdn Bhd Dormant 100 100
Perusahaan Komponen Kenderaan Sdn Bhd Dormant 100 70
TCRG Sdn Bhd Dormant 100 100
Incorporated in the British Virgin Islands:
Nissan TCM Pty Ltd Investment holding 75 75
Incorporated in Vietnam:
* Nissan TCM Vietnam Co Ltd Assembly of Nissan vehicles in Vietnam 56 56
* Company not audited by KPMG. Consolidated using management account.
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44 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
1 0 . S U B S I D I A R Y C O M P A N I E S ( C o n t ’ d )
10.1 The Company’s shareholding in non-wholly owned subsidiaries are as follows:
Balance at Balance at
1.1.1999 Subscribed Sold 31.12.1999
Ordinary shares of RM1 each:
Tan Chong Motor Assemblies Sdn Bhd 700,000 – – 700,000
Ordinary shares of US$1 each:
Nissan TCM Pty Ltd 941,250 – – 941,250
Paid-in capital in US$:
Nissan TCM Vietnam Co Ltd 369,554 – – 369,554
1 1 . A S S O C I A T E D C O M P A N I E SGroup
1999 1998
RM’000 RM’000
Unquoted shares – at cost 625 625
Share of retained profits 2,530 2,247
3,155 2,872
Amount due from/(to) associated companies – 45
3,155 2,917
Details of associated companies are as follows:
Name Principal activities Equity held
1999 1998
% %
Incorporated in Malaysia:
Autoscope Sdn Bhd Export agency for automotive accessories 50 50
Structurflex Sdn Bhd Manufacture of truck side curtains components 50 50
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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45TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
1 2 . L O N G T E R M I N V E S T M E N T SGroup Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Quoted shares - at cost 59,521 152,919 59,521 –
Market value 117,121 – 117,121 –
Sales consideration based on approved disposal price 91,954 – 91,954 –
The long term investments comprise the remaining equity interest in APM and WTCH respectively which are to be disposed to
Bumiputera investors at a sales consideration of RM1.74 and RM1.82 per ordinary share for APM and WTCH respectively.
The Securities Commission had, on 12 July 1999, approved a period of one (1) year from the date of admission of APM and WTCH
respectively to the Main Board of the Kuala Lumpur Stock Exchange for the disposal of the entire 30% equity interest in APM and
WTCH to Bumiputera investors.
1 3 . O T H E R I N V E S T M E N T SGroup
1999 1998
RM’000 RM’000
Unquoted shares – at cost 3,176 3,176
Provision for diminution in value of investments (1,368) (1,368)
1,808 1,808
1 4 . H I R E P U R C H A S E D E B T O R SGroup
1999 1998
RM’000 RM’000
Hire purchase debtors 73,925 62,847
Unearned interest (15,648) (15,300)
58,277 47,547
Provision for doubtful debts (2,170) (2,153)
56,107 45,394
Receivable within twelve months 21,585 16,716
Receivable after twelve months 34,522 28,678
56,107 45,394
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46 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
1 5 . S T O C K SGroup
1999 1998
RM’000 RM’000
Raw materials 13,307 9,234
Finished goods, trading stocks and assembled motor vehicles 124,172 227,811
Work-in-progress 14,149 15,817
Unassembled vehicle packs 124,611 109,549
Spare parts and others 33,854 32,244
310,093 394,655
Provision for slow moving stocks (20,001) (27,140)
290,092 367,515
1 6 . S H O R T T E R M I N V E S T M E N TGroup Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Unquoted investment – at cost 100 – – –
1 7 . T R A D E D E B T O R SGroup
1999 1998
RM’000 RM’000
Trade debtors 84,486 69,230
Provision for doubtful debts (12,459) (13,948)
72,027 55,282
Included in trade debtors are amounts totalling RM9.325 million (1998 – RM9.475 million) and RM2.181 million (1998 – RM0.663
million) owing by certain subsidiary companies of the APM and WTCH Groups respectively.
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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47TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
1 8 . O T H E R D E B T O R S , D E P O S I T S A N D P R E P A Y M E N T S
Group
Included in other debtors, deposits and prepayments are amounts totalling RM19.213 million (1998 – RM68.602 million) and
RM0.645 million (1998 – RM3.273 million) owing by certain companies of the APM and WTCH Groups respectively.
The amounts owing are non-trade in nature, unsecured and are subject to interest at negotiated rates.
Company
Included in other debtors, deposits and prepayments are amounts totalling RM7.513 million (1998 – RM57.058 million) and RM0.593
million (1998 – RM2.204 million) owing by certain companies of the APM and WTCH Groups respectively.
The amounts owing are non-trade in nature, unsecured and are subject to interest at negotiated rates.
1 9 . S H O R T T E R M D E P O S I T SGroup
1999 1998
RM’000 RM’000
Deposits with licensed banks 111,656 6,631
Deposits with finance companies 24,586 72,838
Deposits with other corporations 45,383 2,415
181,625 81,884
2 0 . T U R N O V E R
The Group’s turnover represents the invoiced value (including Government duties and taxes) of goods and services supplied to
customers.
The Company’s turnover comprises dividends and management fees from companies in the Group.
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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48 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
2 1 . O P E R A T I N G P R O F I T / ( L O S S )Group Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Operating profit/(loss) is arrived at after charging:
Auditors’ remuneration
– current year provision 200 194 32 8
– underprovision in previous year 15 11 23 12
Bad debts written off 96 5 – –
Deferred expenditure amortised/written off – 7 – –
Depreciation and amortisation of fixed assets 11,449 12,349 235 162
Directors’ remuneration
– fees 84 84 84 84
– emoluments 4,429 4,089 3,668 3,304
– benefits-in-kind 102 142 102 128
Fees paid to a director for professional services rendered 41 – 41 –
Fixed assets written off 2 523 2 –
Investment in a subsidiary company written off – 4,798 – –
Loss on foreign exchange – 208 – 206
Other interest expense 2,645 1,942 95 135
Provision for doubtful debts 1,048 7,237 – –
Provision for retirement benefits 1,191 1,605 709 1,365
Provision for slow moving stocks 3,326 17,298 – –
Rental of premises
– related companies – – 491 491
– others 3,812 4,051 13 24
Stocks written off – 846 – –
Term loan interest 6,198 13,008 6,196 12,611
And after crediting:
Bad debts recovered 393 91 – –
Gain on disposal of fixed assets 299 352 189 –
Gain on foreign exchange 371 – 25 –
Gross dividends from subsidiary companies – – 694 24,251
Gross dividends from other investments 353 – – –
Interest income
– subsidiary companies – – 8,830 13,118
– others 7,232 4,981 – –
Management fees from subsidiary companies – – 14 11
Rental income of properties 6,338 1,052 18 –
Write back of stocks written off 5,405 5,265 – –
Write back of provision for diminution
in value of investments – – 1,920 –
Write back of provision for doubtful debts 5,377 547 1,181 –
Write back of provision for slow moving stocks 6,790 3 – –
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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49TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
2 2 . E X C E P T I O N A L I T E M SGroup Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Surplus arising from the disposal of
APM and WTCH shares 51,194 – 51,194 –
Surplus arising from the reorganisation
of Autoparts and Non-Motor Divisions – – 102,671 –
Surplus arising from the rationalisation
of Foreign Division – – – 383,333
Gross dividends from companies in the
APM and WTCH Groups 245,861 69,444 245,861 69,444
Gross dividends from companies in
the TCMH, APM and Foreign Groups – – 159,722 769,759
297,055 69,444 559,448 1,222,536
2 3 . T A X A T I O NGroup Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Operating Profit
Taxation based on the results for the year:
Malaysian taxation 328 8,303 195 6,791
Taxation overprovided in respect of prior years (10) (448) – (647)
Deferred taxation (248) (387) – –
70 7,468 195 6,144
Share of associated companies’ taxation – 94 – –
70 7,562 195 6,144
Current year taxation on dividend income
taken up in exceptional items (Note 22) 60,861 19,444 105,583 222,351
60,931 27,006 105,778 228,495
The taxation charge for the Company for the previous year was lower than the statutory tax rate due mainly to the surplus arising
from the rationalisation and demerger of the Foreign Division which are not taxable. The Group’s taxation charge for the previous
year relates to tax on profits of certain subsidiary companies which cannot be off-set against losses of other subsidiary companies
for tax purposes as group relief is not available.
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50 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
2 3 . T A X A T I O N ( C o n t ’ d )
The current year’s taxation charge for the Company in relation to its dividend income is lower than the statutory tax rate as part
of the dividends were tax exempt. Surplus arising from the reorganisation and demerger of the Autoparts and Non-Motor Divisions
are not taxable.
No provision for taxation was made on the operating profit of the Group for the financial year due to the tax waiver for 1999
pursuant to the Income Tax (Amendment) Act, 1999. The taxation on exceptional items at both the Group and Company level is
due to non-tax exempt dividend income received by the Group and the Company from its former subsidiary companies.
2 4 . D I V I D E N D SGroup Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Dividends paid:
Special Dividend in Cash (Dividend No. I) 94,617 – 94,617 –
Special Dividend in Specie (Dividend No. II) 114,516 – 114,516 –
Special Dividend in Specie (Dividend No. III) 38,403 – 38,403 –
Dividends proposed:
Special Dividend in Cash (Dividend No. IV) 49,973 – 49,973 –
297,509 – 297,509 –
2 5 . E A R N I N G S P E R S H A R E – G R O U P
The earnings per share including exceptional items for the year is 46.3 sen (1998 – earnings per share of 4.46 sen). This is calculated
by dividing the Group profit attributable to members of the Company and including exceptional items of RM310.973 million (1998
– profit of RM29.990 million) by the number of shares of the Company in issue during the year.
The earnings per share excluding exceptional items is 11.1 sen (1998 – loss per share of 3.0 sen). This is calculated by dividing the
Group profit attributable to members of the Company and excluding exceptional items of RM74.779 million (1998 – loss of RM20.010
million) by the number of shares of the Company in issue during the year.
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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51TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
2 6 . C A P I T A L C O M M I T M E N T SGroup
1999 1998
RM’000 RM’000
Capital expenditure approved and contracted for – 112
Capital expenditure approved but not contracted for 42,305 43,004
2 7 . C O N T I N G E N T L I A B I L I T I E S ( U N S E C U R E D )Group Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Guarantees to banks for credit facilities utilised by:
– subsidiary companies – – 92 3
– third party 720 1,203 – –
Compensation claim on breach of contract 46 46 – –
766 1,249 92 3
The gross amount of the credit facilities guaranteed
are as follows:
– subsidiary companies – – 5,000 5,000
– associated company 224 224 – –
– third party 2,400 1,800 – –
2,624 2,024 5,000 5,000
2 8 . S I G N I F I C A N T T R A N S A C T I O N S W I T H R E L A T E D C O M P A N I E SCompany
1999 1998
RM’000 RM’000
Management fees receivable from subsidiary companies 14 11
Interest receivable from subsidiary companies 8,830 13,118
Interest payable to subsidiary companies 95 135
Gross dividends from subsidiary companies
– ordinary dividends 694 24,251
– special dividends 159,722 769,759
The directors are of the opinion that the above transactions have been entered into in the normal course of business and have been
established under negotiated terms.
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52 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
2 9 . S I G N I F I C A N T T R A N S A C T I O N S W I T H R E L A T E D P A R T I E S
Other than as disclosed in Notes 7 and 18 to the accounts, the significant related party transactions are:
Group Company
1999 1998 1999 1998
RM’000 RM’000 RM’000 RM’000
Management fees receivable from
– APM Group 12 – 12 6
– WTCH Group 8 – 8 5
Sales to
– APM Group 816 109 – –
– WTCH Group 1,395 1,417 – –
Purchases from
– APM Group 38,022 13,041 – –
– WTCH Group 4,606 2,943 – –
Interest receivable from
– APM Group 554 761 517 534
– WTCH Group 32 513 32 513
Interest payable to
– APM Group 1,493 2,576 – –
– WTCH Group 1,003 372 – –
Rental of premises from WTCH Group 448 506 – –
Rental of premises to
– APM Group 908 955 – –
– WTCH Group 465 591 – –
Gross dividends from
– APM Group 191,667 69,444 191,667 69,444
– WTCH Group 54,194 – 54,194 –
Commissions on policies sold to
– APM Group 127 98 – –
– WTCH Group 61 53 – –
Sales to a company in which certain
directors have substantial interest 6,327 2,696 – –
Purchases of fixed assets from WTCH Group 2 – – –
The directors are of the opinion that the above transactions have been entered into in the normal course of business and have been
established under negotiated terms.
3 0 . S I G N I F I C A N T E V E N T S D U R I N G T H E Y E A R
In December 1999, the Company completed the reorganisation and demerger of its Autoparts and Non-Motor Divisions (“TCMH
Scheme”) the details of which were set out in the Circular To Shareholders dated 29 September 1999. The TCMH Scheme was
approved by the shareholders of the Company in an Extraordinary General Meeting held on 14 October 1999.
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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53TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
3 0 . S I G N I F I C A N T E V E N T S D U R I N G T H E Y E A R ( C o n t ’ d )
The TCMH Scheme comprised the following steps:
(a) An internal reorganisation of the Autoparts and Non-Motor Divisions involving the re-grouping of companies comprising the
Autoparts and Non-Motor Divisions under intermediate holding vehicles, APM Automotive Holdings Berhad (“APM”) and Warisan
TC Holdings Berhad (“WTCH”) respectively, and the granting of rights to allotment (“RTAs”) of 201,599,999 and 67,199,999 ordinary
shares of RM1.00 each in APM and WTCH respectively to the Company.
(b) The Company paid special net dividends in specie (Dividends No. II and III) totalling RM152,918,990 or approximately 45.51% per
TCMH share to the Company’s shareholders, which was satisfied by the renunciation to the Company’s shareholders of the RTAs
of 50% of the enlarged share capital in APM and WTCH respectively.
(c) The Company disposed of 20% of the equity interest in APM and WTCH respectively to Parasand Ltd (“the Controlling
Shareholders”) represented by the RTAs of 40,320,000 ordinary shares of RM1.00 each in APM and 13,440,000 ordinary shares of
RM1.00 each in WTCH at RM1.74 and RM1.82 per ordinary share respectively for cash. The Company received a total cash
consideration of RM94,617,600 from the Controlling Shareholders for the disposals.
(d) The Company is to dispose of 30% of the equity interest in APM and WTCH respectively comprising the RTAs of 60,480,000 and
20,160,000 ordinary shares of RM1.00 each in APM and WTCH respectively to Bumiputera investors approved by the Ministry of
International Trade and Industry (“MITI”) at RM1.74 and RM1.82 per ordinary share respectively for cash, in order to comply with
the National Development Policy. The Company will receive a total of RM141,926,400 in cash upon full disposal of the equity interest
to the Bumiputera investors. As at 31 December 1999, the Company disposed of 9.7% and 13.04% of the equity interest in APM
and WTCH respectively to the Bumiptera investors for a total cash consideration of RM34,023,960 and RM15,948,660 respectively.
(e) The entire issued and paid-up share capital of APM and WTCH comprising 201,600,000 and 67,200,000 ordinary shares of RM1.00
each respectively were listed on the Main Board of the Kuala Lumpur Stock Exchange on 15 December 1999.
(f) The total cash proceeds of RM236,544,000 from the disposals will be distributed entirely to the shareholders of the Company on
a pro-rata basis by way of special dividends. As at 31 December 1999, the Company had distributed RM94,617,600 to the
shareholders of the Company by way of a special dividend in cash (Dividend No. I) and another payment of a special dividend in
cash of (Dividend No. IV) RM49,972,620 on 25 February 2000.
3 1 . S I G N I F I C A N T P O S T B A L A N C E S H E E T E V E N T
On 24 March 2000, the Company completed the disposal of the remaining equity interest in APM and WTCH to the Bumiputera
investors approved by the MITI.
The equity interest of 20.3% and 16.96% in APM and WTCH respectively comprising 40,926,000 and 11,397,000 ordinary shares
of RM1.00 each in APM and WTCH respectively were disposed of at RM1.74 and RM1.82 per ordinary share respectively for cash.
The Company received a total cash consideration of RM91,953,780 from the disposals and recorded an exceptional surplus of
RM32,432,770 from the disposals.
The cash proceeds will be distributed entirely to the shareholders of the Company on a pro-rata basis by way of special dividend
in cash (Dividend No. V), which will be paid on 19 May 2000.
3 2 . S E G M E N T A L I N F O R M A T I O N
Segmental reporting is not disclosed as required by International Accounting Standard (IAS) No. 14 on reporting by segment as
the Group predominantly assembles and sells motor vehicles in Malaysia.
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54 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
3 3 . C O M P A R A T I V E F I G U R E S
The following comparative figures have been restated to conform with the current year’s presentation as required under Malaysian
Accounting Standard No. 2 on “Accounting for Acquisitions and Mergers”. These comparative figures have been restated to exclude
the operations of the companies comprising the Autoparts and Non-Motor Divisions which have been demerged under the TCMH
Scheme on the basis that the demerger took place before 1 January 1998.
33.1 Consolidated Balance Sheet As previously
As restated stated
RM’000 RM’000
SHARE CAPITAL 336,000 336,000
RESERVES 397,835 552,658
733,835 888,658
MINORITY INTERESTS 6,325 7,101
DEFERRED TAXATION 934 3,545
RETIREMENT BENEFITS 6,911 12,858
TERM LOANS (UNSECURED) 147,500 148,584
895,505 1,060,746
CURRENT LIABILITIES
Trade creditors 19,460 60,812
Other creditors and accruals 59,217 95,557
Term loans (unsecured) – 1,464
Short term borrowings (unsecured) 3,607 6,180
Taxation 41,324 58,035
123,608 222,048
1,019,113 1,282,794
FIXED ASSETS 216,422 373,919
ASSOCIATED COMPANIES 2,917 7,594
LONG TERM INVESTMENTS 152,919 –
OTHER INVESTMENTS 1,808 1,818
DEFERRED EXPENDITURE – 482
HIRE PURCHASE DEBTORS 28,678 28,678
CURRENT ASSETS
Stocks 367,515 503,367
Trade debtors 55,282 131,895
Hire purchase debtors 16,716 16,716
Other debtors, deposits and prepayments 83,460 23,420
Cash and bank balances 93,396 194,905
616,369 870,303
1,019,113 1,282,794
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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55TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
3 3 . C O M P A R A T I V E F I G U R E S ( C o n t ’ d )
33.2 Consolidated Profit and Loss Account As previously
As restated stated
RM’000 RM’000
Turnover 483,228 939,043
Cost of sales 423,147 793,040
Operating loss (13,691) (4,366)
Exceptional items 69,444 –
Profit/(Loss) before taxation 55,753 (4,366)
Share of profit of associated companies 73 904
Profit/(Loss) before taxation 55,826 (3,462)
Taxation – Operating profit (7,562) (5,926)
– Exceptional items (19,444) –
(27,006) (5,926)
Profit/(Loss) after taxation 28,820 (9,388)
Minority interests 1,170 1,233
Profit/(Loss) attributable to members of the Company 29,990 (8,155)
Unappropriated profits brought forward 366,474 559,112
Profits available for appropriation 396,464 550,957
Appropriation:
Dividends – –
Unappropriated profits carried forward 396,464 550,957
Unappropriated profits retained in:
Holding company 73,345 62,523
Subsidiary companies 320,872 484,208
Associated companies 2,247 4,226
396,464 550,957
Earnings/(Loss) per share including exceptional items (sen) 4.46 (1.21)
Loss per share excluding exceptional items (sen) (3.0) (1.21)
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56 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
3 3 . C O M P A R A T I V E F I G U R E S ( C o n t ’ d )
33.3 Consolidated Cash Flow Statement As previously
As restated stated
RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(Loss) before taxation 55,826 (3,462)
Adjustments for:
Bad debts recovered (91) (108)
Bad debts written off 5 1,417
Deferred expenditure amortised/written off 7 181
Depreciation and amortisation of fixed assets 12,349 38,572
Fixed assets written off 523 618
Gain on disposal of fixed assets (352) (1,019)
Interest expense 14,950 17,282
Interest income (4,981) (8,489)
Provision for doubtful debts 6,690 5,805
Provision for retirement benefits 1,605 2,269
Provision for slow moving stocks 17,295 25,623
Reversal of share of losses upon disposal of an associated company – (953)
Share of profit of associated companies (net of dividends received) (73) (904)
Stocks written off 846 2,491
Write back of stocks written off (5,265) (5,265)
Operating profit before working capital changes 99,334 74,058
Increase/(Decrease) in working capital:
Stocks 122,152 173,805
Trade debtors 55,108 115,654
Other debtors, deposits and prepayments (19,616) 22,454
Hire purchase debtors 12,181 12,181
Amount due from associated companies (897) (1,707)
Trade creditors (63,182) (60,491)
Other creditors (42,169) (70,958)
Cash generated from operations 162,911 264,996
Interest paid (14,950) (17,282)
Interest received 4,981 8,489
Retirement benefits paid (2,041) (2,667)
Taxation paid (88,972) (95,137)
Net cash generated from operating activities 61,929 158,399
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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57TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
3 3 . C O M P A R A T I V E F I G U R E S ( C o n t ’ d )
33.3 Consolidated Cash Flow Statement (Cont’d) As previously
As restated stated
RM’000 RM’000
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of additional shares in associated company (150) (150)
Additional deferred expenditure incurred – (470)
Net funds from minority interests (51) 640
Proceeds from disposal of fixed assets 590 4,859
Purchase of fixed assets (12,470) (33,747)
Net cash used in investing activities (12,081) (28,868)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to minority shareholders (410) (410)
Dividends paid to shareholders (16,934) (16,934)
Repayment of term loans (10,000) (13,199)
Net cash used in financing activities (27,344) (30,543)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CONSOLIDATION 87 (26)
NET INCREASE IN CASH AND CASH EQUIVALENTS 22,591 98,962
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 67,198 89,763
CASH AND CASH EQUIVALENTS AT END OF YEAR 89,789 188,725
CASH AND CASH EQUIVALENTS COMPRISE:
Short term deposits 81,884 –
Cash and bank balances 11,512 194,905
Short term borrowings (3,607) (6,180)
89,789 188,725
Notes to the Accounts (Cont’d)
31 DECEMBER 1999
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14 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Shareholders’ StatisticsAS AT 31 MARCH 2000
S H A R E C A P I T A L
Authorised – RM500,000,000
Issued and Fully Paid-up – RM336,000,000
Class of Shares – Ordinary shares of RM0.50 each
Voting Rights – 1 vote per ordinary share
T W E N T Y L A R G E S T S H A R E H O L D E R S
Name No. of Shares Held %
1. Tan Chong Consolidated Sdn Bhd 130,266,662 19.3849
2. CIMB Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Tan Chong Consolidated Sdn Bhd 100,000,000 14.8810
3. The Central Depository (Pte) Limited 93,635,832 13.9339
4. Mayban Nominees (Tempatan) Sdn Bhd
Tan Chong Consolidated Sdn Bhd 45,000,000 6.6964
5. Cartaban Nominees (Asing) Sdn Bhd
Daiwa Securities SB Capital Markets Co Ltd for Nissan Motor Co Ltd 37,333,324 5.5556
6. Employees Provident Fund Board 22,373,000 3.3293
7. CIMSEC Nominees (Tempatan) Sdn Bhd
Allied Investments Limited for Tan Chong Consolidated Sdn Bhd 20,000,000 2.9762
8. Mayban Nominees (Tempatan) Sdn Bhd
Pledged Sec A/C Tan Chong Consolidated Sdn Bhd 9,000,000 1.3393
9. HSBC Nominees (Asing) Sdn Bhd
TMIS for United Nations Joint Staff Pension Fund 7,931,000 1.1802
10. HSBC Nominees (Asing) Sdn Bhd
UBS AG EX UBS for Pacific Investment Fund 7,576,000 1.1274
11. HSBC Nominees (Asing) Sdn Bhd
CMB LDN for The Malaysia Fund Incorporated 3,697,000 0.5501
12. HLG Nominee (Asing) Sdn Bhd
Dao Heng Bank Ltd for Boronia Corporation 3,690,000 0.5491
13. Chase Malaysia Nominees (Asing) Sdn Bhd
Emerging Markets Growth Fund 3,570,000 0.5312
14. HSBC Nominees (Asing) Sdn Bhd
Meespierson SG for Sommerset Assets Limited 3,288,993 0.4894
15. Tan Kim Hor 3,074,834 0.4576
16. Bank Simpanan Nasional 2,873,000 0.4275
17. Citicorp Nominees (Asing) Sdn Bhd
MLPFS for Hang Chooi Seng 2,515,000 0.3742
18. Prudential Assurance Malaysia Berhad 2,281,000 0.3394
19. Cartaban Nominees (Asing) Sdn Bhd
SSBT Fund ZV3M for IFC Emerging Markets Fund-Malaysia 1,935,500 0.2880
20. Mayban Nominees (Tempatan) Sdn Bhd
Pledged Securities Account for Tan Eng Hwa 1,700,000 0.2530
501,741,145 74.6638
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15TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Shareholders’ Statistics (Cont’d)
AS AT 31 M A RCH 2000
A N A L Y S I S B Y S I Z E O F H O L D I N G S
Size of Holdings No. of Holders % No. of Shares Held %
1 – 499 212 1.1979 25,729 0.0038
500 – 5,000 13,718 77.5160 30,186,936 4.4921
5,001 – 10,000 1,927 10.8888 16,562,531 2.4647
10,001 – 100,000 1,614 9.1202 45,814,496 6.8176
100,001 – 1,000,000 192 1.0849 59,817,063 8.9013
Above 1,000,000 34 0.1921 519,593,245 77.3204
17,697 100.0000 672,000,000 100.0000
S U B S T A N T I A L S H A R E H O L D E R S (as per Register of Substantial Shareholders)
Name No. of Shares Held %
1. Tan Chong Consolidated Sdn Bhd 304,266,662* 45.28
2. Nissan Motor Co Ltd 37,333,324 5.56
3. Employees Provident Fund Board 24,392,000 3.63
* Dato’ Tan Kim Hor, Dato’ Tan Heng Chew, Dr Tan Ban Leong, Messrs Tan Beng Keong, Tan Boon Pun, Tan Eng Soon, Tan Hoe Pin, Dr Tan Kang Leong
and Mr Tan Kheng Leong are deemed interested in the shares held by Tan Chong Consolidated Sdn Bhd by virtue of Section 6A of the Companies
Act, 1965, and consequently are substantial shareholders of Tan Chong Motor Holdings Berhad.
T A N C H O N G M O T O R H O L D I N G S B E R H A DD a i l y S h a r e P r i c e s & V o l u m e T r a d e d o n K L S E
Share Price(RM)
Volume Traded(Million)
CompositeIndex
Pre-demerger Post-demerger(Company without APM Group & Warisan Group)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
1999 2000
Ex-d
ate
0
2
4
6
8
10
12
0
0.6
1.2
1.8
2.4
3.0
3.6
0
200
400
600
800
1000
1200
Volume Traded(number of shares traded for the day)
Share Price(closing price for the day)
KLSE Composite Index(closing index for the day)
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15TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
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16 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
T E R M S O F R E F E R E N C E
1. Membership
The Audit Committee shall be appointed by the Board
amongst the Directors of the Company and shall consists of
not less than 3 members, a majority of whom shall be Non-
executive Directors. A quorum shall be 2 members.
The Chairman of the Audit Committee shall be appointed
by the members of the Committee and must be a Non-
executive Director.
2. Attendance at Meetings
The Finance Director and Head of Internal Audit shall
attend Audit Committee meetings.
The external Auditor or his representative has the right
to appear and be heard at any meeting of the Audit
Committee. The external Auditor shall appear before the
Audit Committee when required to do so by the Committee.
The Audit Committee shall meet with the external Auditor
without any officers of the Company present once a year.
The Company Secretary shall be the Secretary of the Audit
Committee.
3. Frequency of Meetings
Audit Committee meetings shall be held not less than three
times a year.
The external Auditor may request an Audit Committee
meeting if he considers that one is necessary. The Chairman
of the Audit Committee, upon the request of the external
Auditor, shall convene a meeting of the Audit Committee
to consider any matters the external Auditor believes
should be brought to the attention of the Directors or
Shareholders.
4. Reporting Procedures
The Secretary shall circulate the minutes of meetings of
the Audit Committee to all members of the Board.
5. Authority
The Audit Committee is authorised by the Board to
investigate any activity within its terms of reference. It is
authorised to seek any information it requires from any
employee and all employees are directed to co-operate with
any request made by the Committee.
The Audit Committee is authorised by the Board to obtain
outside legal or other independent professional advice
and to secure the attendance of outsiders with relevant
experience and expertise if it considers this necessary.
6. Duties & Responsibilities
The following are the duties and responsibilities of the
Audit Committee:
- To consider the appointment of the external Auditor, the
audit fee and any questions of resignation or dismissal;
- To discuss with the external Auditor, before the audit
commences, the nature and scope of the audit and
ensure co-ordination where more than one audit firm is
involved;
- To review the quarterly and annual financial statements
before submission to the Board, focusing particularly on:
• any changes in accounting policies and practices
• major judgemental areas
• significant adjustments resulting from the audit
• the going concern assumption
• compliance with accounting standards
• compliance with stock exchange and legal requirements
- To discuss problems and reservations arising from
the interim and final audits, and any matters the
external Auditor may wish to discuss (in the absence
of management, if necessary);
- To review the internal audit programme, consider the
major findings of internal audit investigations and
management’s response and ensure co-ordination
between the internal and external Auditors;
- To keep under review the effectiveness of internal
control systems and, in particular, review the external
Auditor’s management letter and management’s
response; and
- To consider other matters as may be agreed to by the
Audit Committee and the Board of Directors.
Audit Committee
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58 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Tenure/ Net Book Age of
Location Description Land Area Expiry Date Value Building
(sq feet) (RM million) (years)
249 Jalan Segambut Assembly plant, offices, 806,557 Leasehold 36.16 24
51200 Kuala Lumpur workshop & vehicle 14.01.2073
storage yard 77,662 Leasehold 3.33
20.04.2068
Lot 10230 Mukim of Batu Vacant land 14,514 Freehold 0.55
Jalan Segambut
51200 Kuala Lumpur
Lot 49970 Mukim of Batu Vacant land 4,514 Freehold 0.17
Jalan Segambut
51200 Kuala Lumpur
Lot 49972 Mukim of Batu Vacant land 17,177 Freehold 0.65
Jalan Segambut
51200 Kuala Lumpur
Lot 49393 Jalan Segambut Vacant land 2,886 Leasehold 0.03
51200 Kuala Lumpur 20.04.2068
P.T. 7702 Jalan Segambut Vehicle storage yard 133,064 Freehold 6.00
51200 Kuala Lumpur
Lot 4185 Jalan Segambut Office & factory 147,066 Freehold 8.00 7
51200 Kuala Lumpur
Lot 43097 Mukim of Batu Warehouse & vehicle 339,456 Leasehold 1.54 2
Off Jalan Segambut storage yard 27.01.2074
51200 Kuala Lumpur
327, 33/4 Miles Pre-delivery inspection centre 114,187 Leasehold 3.63 33
Jalan Segambut 04.07.2065
51200 Kuala Lumpur
Lot 1474 Jalan Segambut Vehicle storage yard 89,659 Freehold 3.10
52000 Kuala Lumpur
Lot 1475 Jalan Segambut Vehicle storage yard 116,959 Freehold 3.83
52000 Kuala Lumpur
Lot 1249 Jalan Segambut Vehicle storage yard 111,646 Freehold 4.48
52000 Kuala Lumpur
Group Properties
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59TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Group Properties (Cont’d)
Tenure/ Net Book Age of
Location Description Land Area Expiry Date Value Building
(sq feet) (RM million) (years)
582, 31/2 Miles, Jalan Ipoh Office, vehicle storage bay 19,752 Freehold 2.15 20
51200 Kuala Lumpur & showroom
62 – 68 Jalan Ipoh Showroom & office 7,533 Freehold 6.56 44
51200 Kuala Lumpur
21 Jalan Ipoh Kecil Head office building 7,571 Freehold 2.66 14
50350 Kuala Lumpur
Lot 1388 Jalan Seri Amar Levelled commercial land 22,184 Freehold 12.72
50350 Kuala Lumpur for rental
Lot UG01, Kompleks Wilayah Showroom & office 4,827 Freehold 1.92 16
2 Jalan Munshi Abdullah
50100 Kuala Lumpur
Lot UG04 – 06, Kompleks Wilayah Showroom & office 602 Freehold 0.43 16
2 Jalan Munshi Abdullah
50100 Kuala Lumpur
LG045 Sungei Wang Plaza Retail lot for rental 621 Freehold 0.50 20
Jalan Bukit Bintang
55100 Kuala Lumpur
8C-3-2 Sri Murni Condominium Apartment for rental 1,938 Freehold 0.61 6
8 Lorong Kota 4
Bukit Ledang
50480 Kuala Lumpur
Plot 28, Sec 52, Jalan Pudu Car showroom 1,600 Leasehold 0.49 15
55100 Kuala Lumpur 23.03.2075
Plot 29, Sec 52, Jalan Pudu Office & upper floors for rental 1,600 Leasehold 0.50 15
55100 Kuala Lumpur 23.03.2075
34 Jalan Sibu 17, Taman Wahyu Office, warehouse & industrial 3,600 Leasehold 0.20 18
68100 Kuala Lumpur building for rental 25.12.2078
35 Jalan Sibu 17, Taman Wahyu Office, warehouse & industrial 3,600 Leasehold 0.25 18
68100 Kuala Lumpur building for rental 25.12.2078
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60 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
36 Jalan Sibu 17, Taman Wahyu Office, warehouse & industrial 5,632 Leasehold 0.31 18
68100 Kuala Lumpur building for rental 25.12.2078
Lot 3 Jalan Perusahaan Satu Factory, warehouse & offices 425,630 Leasehold 15.99 17
Batu Caves, 68100 Selangor 05.09.2074
142 Jalan SBC 3 Shoplot for rental 2,512 Freehold 1.58 1
Taman Sri Batu Caves
68100 Batu Caves, Selangor
117 – 119 Jalan SS15/5 Showroom & offices for rental 3,520 Freehold 0.83 19
47500 Subang Jaya
Lot 7834 Sungai Rasa Factory for rental 63,368 Freehold 5.12 9
Jalan Batu Tiga Lama
41300 Klang, Selangor
53 & 55 Jalan Satu Kawasan 16 Showroom & offices for rental 4,508 Freehold 0.82 17
Off Jalan Batu Tiga
(Berkeley Town Centre)
41150 Klang, Selangor
P.T. 10451 Mukim Serendah Industrial land for rental 2,178,020 Leasehold 8.85
Daerah Hulu Selangor 24.04.2095
63, 63A & 63B Jalan Tun Perak Showroom, office, store 18,252 Leasehold 1.62 33
75300 Melaka and workshop 02.07.2052
36 Jalan IMJ 5 Shoplot for rental 9,587 Leasehold 0.44 5
Taman Industry Malim Jaya 18.11.2095
75050 Malacca
260 Jalan Tun Dr Ismail Showroom & office 19,376 Freehold 1.94 15
70200 Seremban
Negeri Sembilan
Lot 151 Jalan Lombong Emas 6 Workshop & spare parts store 33,121 Leasehold 1.30 3
Seremban Light Industrial Park 06.04.2090
70200 Seremban, Negeri Sembilan
Tenure/ Net Book Age of
Location Description Land Area Expiry Date Value Building
(sq feet) (RM million) (years)
Group Properties (Cont’d)
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61TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Tenure/ Net Book Age of
Location Description Land Area Expiry Date Value Building
(sq feet) (RM million) (years)
Group Properties (Cont’d)
Lot 1599 Bandar Penggaram Commercial land for rental 53,933 Freehold 1.40
Jalan Zabedah
83000 Batu Pahat, Johor
Lot 690 & 691 Shoplots for rental 1,680 Leasehold 0.42 43
14 & 15 Jalan Tuanku Mokhtar Ismail 11.02.2052
86000 Kluang, Johor 1,680 Leasehold
02.02.2052
Lot 7348, 27 Jalan Tun Abd Razak Showroom, office & 18,295 Freehold 2.68 6
Susur 2, 80100 Johor Bahru, Johor offices for rental
Plot 157 Jalan Angkasa Mas 6 Office & workshop 87,120 Leasehold 1.67 4
Kawasan Perindustrial Tebrau II 25.10.2053
81100 Johor Bahru, Johor
A7348 Jalan Berserah Showroom, office, warehouse 44,420 Freehold 5.95 16
25300 Kuantan, Pahang and workshop
10B Kayangan Apartment Apartment for rental 3,250 Freehold 0.33 19
69000 Genting Highlands, Pahang
Lot 31036 & 31037 Showroom, office, workshop 40,292 Leasehold 1.31 14
Jalan Kuala Kangsar & spare parts store 24.09.2894
30010 Ipoh, Perak
Plot 70 Office & workshop 4,887 Leasehold 0.26 3
Kinta Jaya Light Industrial Park 01.03.2095
30250 Ipoh, Perak
Lot 30502 Workshop for rental 6,806 Freehold 0.36 27
Jalan Sultan Iskandar Shah
30000 Ipoh, Perak
204 Jalan Sultan Iskandar Shah Shoplot for rental 1,740 Freehold 0.36 24
30000 Ipoh, Perak
Lot 5688 Levelled industrial land 174,240 Leasehold 0.30
Parit Buntar Industrial Park for rental 28.11.2044
34200 Perak
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62 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
Tenure/ Net Book Age of
Location Description Land Area Expiry Date Value Building
(sq feet) (RM million) (years)
Group Properties (Cont’d)
478 – 481 Taman Kota Jaya Shoplots for rental 9,091 Leasehold 0.77 19
Jalan Kampong Dew 16.11.2065
34700 Simpang, Taiping, Perak
119 Jalan Changkat Jong Shoplot for rental 2,979 Freehold 0.20 20
36000 Teluk Intan, Perak
Lot 2224 Jalan Changkat Jong Levelled industrial land 26,299 Freehold 0.49
36000 Teluk Intan, Perak for rental
39 Jalan Durian Shoplot for rental 3,088 Leasehold 0.18 16
Taman Kampar Jaya 23.11.2060
31900 Kampar, Perak
41 Jalan Durian Shoplot for rental 1,600 Leasehold 0.15 16
Taman Kampar Jaya 23.11.2060
31900 Kampar, Perak
Plot 12 & 13 Slim Indah Shoplots for rental 5,821 Leasehold 0.23 16
35800 Slim River, Perak 20.03.2082
Plot 25 & 26 Juru Industrial Park Showroom & office 4,800 Freehold 0.36 2
Juru Seberang Prai Tengah
14000 Pulau Pinang
23 Weld Quay/274 Victoria Street Showroom & office for rental 17,967 Freehold 6.67 27
10300 Pulau Pinang
127 Jalan Petani Spare parts store & workshop 10,882 Freehold 0.92 13
10150 Pulau Pinang
1461 Jalan Besar, Sg Jawi Shoplot for rental 3,850 Freehold 0.24 13
13700 Seberang Prai Selatan
Pulau Pinang
996 Jalan Baru Showroom, workshop & 85,900 Freehold 4.14 15
13700 Seberang Prai spare parts centre
Pulau Pinang
267 Jalan Baru Shoplot for rental 2,126 Leasehold 0.27 15
01000 Kangar, Perlis 07.02.2083
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63TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )
1 Jalan Tunggal Shoplot for rental 2,987 Leasehold 0.33 15
01000 Kangar, Perlis 07.02.2083
27, 29 & 30D Showroom, office & workshop 5,600 Freehold 0.94 29
Seberang Jalan Putra Mergong for rental
05150 Alor Setar, Kedah
96J Jalan Seberang Putra Office, warehouse, showroom 24,383 Leasehold 0.87 9
05150 Alor Setar, Kedah & workshop 09.04.2031
2838 Jalan Temenggong Building for rental 14,748 Freehold 1.25 33
15000 Kota Baru, Kelantan
Plot 3 (TL207528934) Showroom, office, workshop 129,240 Leasehold 2.25 2
Jalan Tun Mustapha & warehouse 31.12.2042
87015 Labuan, Sabah
53/4 Miles (CLO15333936) Office & workshop 20,790 Leasehold 1.24 6
Jalan Tuaran, Inanam 31.08.2026
88300 Kota Kinabalu, Sabah
51/2 Miles (CLO15328695) Showroom, office, workshop 99,490 Leasehold 2.75 17
Jalan Tuaran, Inanam & spare parts centre 31.12.2025
88300 Kota Kinabalu, Sabah
Lot 242 Jalan Abell Showroom, office & workshop 14,500 Leasehold 0.75 22
93100 Kuching, Sarawak 31.12.2024
Lot 869 Section 66 Showroom, office, workshop, 32,668 Leasehold 0.57 4
Jalan Kemajuan store & vehicle storage yard 31.12.2034
Pending Industrial Estate
93450 Kuching, Sarawak
Group Properties (Cont’d)
Tenure/ Net Book Age of
Location Description Land Area Expiry Date Value Building
(sq feet) (RM million) (years)
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Form of Proxy
I/We ________________________________________________________________________________________________________________________
of (address) _________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________
being a member/members of TAN CHONG MOTOR HOLDINGS BERHAD, hereby appoint (Name of Proxy/Proxies/Corporate Representative)
____________________________________________________________________________________________________________________________ ,
or failing him (name) _____________________________________________________________________________________________ of (address)
____________________________________________________________________________________________________________________________
or failing the abovenamed proxy/proxies/corporate representative, the Chairman of the meeting, as my/our proxy to vote for me/us
on my/our behalf at the Twenty-Eighth Annual General Meeting of the Company to be held at 3rd Floor, 21 Jalan Ipoh Kecil,
50350 Kuala Lumpur, Malaysia on Wednesday 24 May 2000 at 11:00 a.m., and at any adjournment thereof, as indicated below:
For Against
Resolution 1 Reports and Accounts
Resolution 2 Dato’ Tan Kim Hor
Resolution 3 Dato’ Tan Heng Chew
Resolution 4 Encik Azman bin Badrillah
Resolution 5 Directors’ fees
Resolution 6 Auditors
Resolution 7 Amendments to the Articles of Association and Adoption of
New Articles of Asociation
(If you wish to instruct your proxy how to vote, insert a tick in the appropriate box. Subject to any voting instructions so given, the proxy will vote, or mayabstain from voting on any resolution as he may think fit.)
If the member is an individual :
No. of shares held: _________________________________
_______________________________________
Signature Date: _____________________________________________
If the member is a corporation:
The Common Seal of ___________________________
was hereunto affixed in accordance with its seal
Articles of Association in the presence of
No. of shares held: _________________________________
_______________________________________________
Director Director/Secretary Date: _____________________________________________
Notes:1. A member entitled to vote is entitled to appoint a proxy or proxies (but not more than two) to attend and vote for him. A proxy need not be a member
of the Company, and, where there are two proxies, the number of shares to be represented by each proxy must be stated.2. In the case of a corporation, the form of proxy appointing a corporate representative must be executed under seal or under the hand of an officer or
attorney duly authorised.3. To be valid, the form of proxy must be deposited at the Registered Office of the Company, 62 - 68 Jalan Ipoh, 51200 Kuala Lumpur, Malaysia, not less
than forty-eight hours before the time appointed for the meeting.
TAN␣ CHONG␣ MOTOR␣ HOLDINGS␣ BERHAD␣ (12969-P)␣ (Incorporated in Malaysia)
First fold
Second fold
Affixstamphere
The Company Secretary
TAN CHONG MOTOR HOLDINGS BERHAD
62 - 68 Jalan Ipoh
51200 Kuala Lumpur
Malaysia
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