Utusan Melayu (Malaysia) Bhd - Announcements
Utusan Melayu (Malaysia) Bhd - Announcements
Utusan Melayu (Malaysia) Bhd - Announcements
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UTUSAN MELAYU (MALAYSIA) BERHAD<br />
7170 - V<br />
1999 ANNUAL REPORT
C o n t e n t s<br />
1 Corporate Vision and Mission<br />
2 Notice Of Annual General Meeting<br />
6 Corporate Information<br />
7 Board Of Directors<br />
8 Senior Management<br />
And Corporate Services<br />
Cover Rationale<br />
The Malay Manuscript Legacy Transcribed into the<br />
21st Century<br />
Combining artistic adornments in lavish illumination,<br />
floral patterns of exquisite gold and coloured inks on<br />
papers of antiquity, fluid arabic script embodying courtly<br />
and refined language rendered by calligraphic elegance,<br />
intricate seals embellished signifying authenticity and<br />
attention, the finest Malay letter writing bear witness to<br />
a historical state in time, its roots embedded in Malay<br />
culture, civilisation and aesthetics. Its contents revealing<br />
directly or indirectly, the writers position, personality and<br />
views in relation to the diplomatic importance of the<br />
recipient, offering an insight glimpse of early sociopolitical<br />
and economic history of Malay society.<br />
The <strong>Utusan</strong> Group pays homage to the arts of the Malay<br />
manuscript, from which environment modern literary<br />
works were born; and whom we draw inspiration from<br />
in our 61 year history. Portraying the documentation of<br />
our heritage, the cover projects an evolutionary path we<br />
have journeyed. Beginning from our origin as a daily<br />
newspaper company providing journalistic news then,<br />
and the aspiration to become the nation’s revolutionary<br />
leading multiple media communications company of<br />
choice today, converging on the cutting edge of the<br />
technologically driven 21st century.<br />
9 Management Team<br />
12 Audit Committee<br />
14 Group Five Year Financial Summary<br />
18 Chairman’s Statement<br />
26 Corporate Calendar<br />
30 Analysis Of Shareholdings<br />
31 Directors’ Report<br />
35 Financial Statements<br />
67 List Of Properties<br />
Proxy Form
C o r p o r a t e M i s s i o n<br />
• To continuously develop and offer innovative and quality products and services through the application of leading<br />
edge technology.<br />
• To develop competent, knowledgeable and motivated workforce through comprehensive human resource<br />
management.<br />
• To adopt good industrial practices throughout the group whilst caring for the environment.<br />
• To establish strategic alliances with local and foreign partners so as to acquire global access to leading edge<br />
technology and increase market reach.<br />
C o r p o r a t e V i s i o n<br />
To Be The Leading Multiple<br />
Media Communications<br />
Company Of Choice<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
1
Notice O F A NNUAL G ENERAL M EETING<br />
1. To receive and adopt the Audited Accounts for the financial year ended 31 December 1999 and the Directors’ and<br />
Auditors’ Reports thereon. Resolution 1<br />
2. To declare a first and final dividend for the year ended 31 December 1999. Resolution 2<br />
3. To re-elect Tan Sri Dato’ Seri Utama Abdul Samad Idris, a Director retiring pursuant to Section 129(6) of the Companies<br />
Act, 1965, and, being eligible, offers himself for re-appointment. Resolution 3<br />
4. To re-elect Directors retiring in accordance with Article 98 of the Company’s Articles of Association and, being eligible,<br />
offer themselves for re-election:i.<br />
Dato’ Hj Nasir Hj Mat Piah Resolution 4<br />
ii. Tan Sri Kamarul Ariffin Mohamed Yassin Resolution 5<br />
iii. Tan Sri Dato’ Abdullah Ahmad Resolution 6<br />
5. To approve the payment of Directors fees for the year ended 31 December 1999. Resolution 7<br />
6. To appoint Messrs Arthur Andersen & Co as Auditors of the Company, in place of the retiring Auditors, Messrs<br />
PricewaterhouseCoopers, to hold office until the conclusion of the next Annual General Meeting, at a remuneration to be<br />
determined by the Directors. Resolution 8<br />
7. SPECIAL BUSINESS<br />
To consider and, if thought fit, to pass the following Ordinary Resolutions:a.<br />
Acquisition and Disposal of Assets<br />
“That, pursuant to Section 132(C) of the Companies Act, 1965 and subject always to the approval of all the relevant<br />
regulatory bodies being obtained, the Board of Directors be and are hereby authorised to acquire or dispose of assets<br />
on behalf of the Company upon such terms and conditions and for such purposes as the Board of Directors may<br />
deem fit until the conclusion of the next Annual General Meeting”. Resolution 9<br />
b. New Issue of Shares<br />
“That, pursuant to Section 132(D) of the Companies Act, 1965 the Board of Directors be and are hereby authorised<br />
to issue shares in the Company at any time until conclusion of the next Annual General Meeting and upon such<br />
terms and conditions and for such purposes as the Board of Directors may, in their absolute discretion, deem fit<br />
provided that the aggregate number of shares to be issued does not exceed ten per centum (10%) of the issued share<br />
capital of the Company for the time being, subject always to the approval of all the relevant regulatory bodies being<br />
obtained for such allotment and issue”. Resolution 10<br />
2 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
NOTICE IS HEREBY GIVEN that the Thirty Second Annual General Meeting of<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad will be held at Dewan Besar, Level 1, Bangunan<br />
Tabung Haji, 201, Jalan Tun Razak, 50400 Kuala Lumpur on Thursday, 20 April 2000<br />
at 11.00 a.m. for the following purposes:-
8. To transact any other ordinary business of which due notice shall have been given.<br />
FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall be eligible to attend this meeting only in respect of:a.<br />
shares deposited into the Depositor’s securities account before 12.30 p.m. on 10 April 2000 (in respect of shares which<br />
are exempted from mandatory deposit);<br />
b. shares transferred into the Depositor’s securities account before 12.30 p.m. on 10 April 2000 in respect of ordinary transfers;<br />
c. shares bought on the Kuala Lumpur Stock Exchange on a cum entitlement basis according to the rules of the<br />
Kuala Lumpur Stock Exchange;<br />
Shareholders are reminded that pursuant to the Securities Industry (Central Depositories) (Amendment) (No. 2) Act, 1998<br />
which came into force on 1 November 1998, all shares not deposited with the <strong>Malaysia</strong>n Central Depository Sdn <strong>Bhd</strong><br />
by 12.30 p.m. on 1 December 1998 and not exempted from mandatory deposit, have been transferred to the Minister of<br />
Finance (‘MOF’). Accordingly, the eligibility to attend this meeting for such undeposited shares will be the MOF.<br />
NOTICE OF BOOK CLOSURE FOR PAYMENT OF DIVIDEND<br />
NOTICE IS HEREBY GIVEN THAT the Register of Members will be closed from 27 June 2000 to 28 June 2000. Both<br />
dates inclusive to determine shareholders entitlement to the dividend payment. The dividend, if approved, will be paid on<br />
20 July 2000 to shareholders whose name appear in the record of depositors on 26 June 2000.<br />
FURTHER NOTICE IS HEREBY GIVEN THAT a Depositor shall qualify for entitlement only in respect of:-<br />
(a) shares deposited into the Depositor’s securities account<br />
before 12.30 p.m. on 22 June 2000 (in respect of<br />
shares which are exempted from mandatory deposit);<br />
(b) shares transferred into the Depositor’s securities<br />
account before 12.30 p.m. on 26 June 2000 in<br />
respect of ordinary transfers;<br />
(c) shares bought on the Kuala Lumpur Stock Exchange<br />
on a cum entitlement basis according to the rules of<br />
the Kuala Lumpur Stock Exchange.<br />
Shareholders are reminded that pursuant to the Securities<br />
Industry (Central Depositories) (Amendment) (No. 2) Act,<br />
1998 which came into force on 1 November 1998, all<br />
shares not deposited with the <strong>Malaysia</strong>n Central<br />
Depository Sdn <strong>Bhd</strong> by 12.30 p.m. on 1 December 1998<br />
and not exempted from mandatory deposit, have been<br />
transferred to the Minister of Finance (‘MOF’).<br />
Accordingly, the payment for such undeposited shares will<br />
be paid to the MOF.<br />
By Order of the Board<br />
SHARINA SAIDON<br />
Company Secretary<br />
Kuala Lumpur<br />
4 April 2000<br />
NOTES:-<br />
1. Appointment of Proxy<br />
A member entitled to attend and vote at the Meeting is entitled<br />
to appoint a proxy to attend and to vote in his stead. A proxy<br />
need not be a member of the Company. The instrument<br />
appointing a proxy must be deposited at the Registrar’s Office<br />
at 20th Floor, IGB Plaza, Jalan Kampar Off Jalan Tun Razak,<br />
50400 Kuala Lumpur not less than forty eight (48) hours before<br />
the time set for the Meeting. Where the Proxy Form is executed<br />
by a corporation, it must be either under its Common Seal or<br />
under the hand of an officer or attorney duly authorised.<br />
2. Change of Auditors<br />
A Notice of Nomination pursuant to Section 172(11) of the<br />
Companies Act, 1965, a copy of which has been sent to members,<br />
has been received by the Company for the nomination of Messrs<br />
Arthur Andersen & Co, who have given their consent to act, for<br />
appointment as Auditors of the Company and of the intention to<br />
propose the above ordinary resolution.<br />
3. Resolution Pursuant To Section 132(D) of the Companies Act, 1965<br />
In line with the Company’s plan for expansion/diversification, the<br />
Company is actively looking into prospective areas so as to<br />
broaden its operating base and earning potential. As the<br />
expansion/diversification may involve the issue of new shares, the<br />
Directors, under present circumstances would have to call for a<br />
general meeting to approve the issue of new shares even though<br />
the number involved is less than ten per centum (10%) of the<br />
issued share capital.<br />
In order to avoid any delay and costs involved in convening a<br />
general meeting to approve such issue of shares, it is thus<br />
considered appropriate that the Directors be now empowered to<br />
issue shares in the Company up to an amount not exceeding in<br />
total ten per centum (10%) of the issued share capital of the<br />
Company for the time being for such purpose. This authority,<br />
unless revoked or varied at a general meeting, will expire at the<br />
next Annual General Meeting of the Company.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
3
The Raffles Letters<br />
Letter from the Sultan of Johor and Pahang, 1811 during<br />
the British Campaign in Assisting<br />
the Invasion of Dutch Java<br />
Letter from the<br />
Sultan of Johor<br />
and Pahang,<br />
5 January 1811,<br />
(9 Zulhijah 1225)<br />
One of the most beautiful royal Malay letters delivered to Sir<br />
Thomas Stamford Raffles in his capacity as Agent to the<br />
Governor-General with the Malay States. This letter, from the<br />
ailing Sultan Mahmud Syah of Johor and Pahang in Lingga,<br />
was dated as 8 January, confirming support for the British invasion<br />
of Dutch Java by providing a perahu.<br />
The Raffles letters are a collection of intriguing chronicles relating to<br />
the British and Malay States during his posting in Melaka.<br />
Its impressive documentations are all well preserved in the<br />
British Library.<br />
This correspondence unveiled little of the secret mission the British planned in<br />
wresting Java from French-Dutch occupation. A plan to retaliate against<br />
Napoleon Bonaparte and his warring campaign in Europe. In actual<br />
reality, the Raffles letters were dispatched to the Malay Sultans to establish<br />
support, and gain provisions to weaken Dutch colonization on the island of<br />
Java. A sample of the letter pictured, written in diplomatic persuasive tones<br />
by Abdullah Bin Abdul Kadir, a scribe employed by Raffles, included<br />
magnificent presents to gain favour with the Malay Sultans. Every letter that<br />
was sent received favourable response and was replied with presents from the<br />
Sultans in return. It was the start of British involvement in the internal<br />
affairs of the Malay States.<br />
The letter’s elegance lies in its rhythmic patterns and lines fused by the<br />
pot-pourri of eloquent calligraphic melody. Shimmering in the generous effect<br />
of ink and gold on English paper (‘G Taylor 1802’).
Corporate I NFORMATION<br />
BOARD OF DIRECTORS<br />
YBhg Tan Sri Kamarul Ariffin Mohamed Yassin<br />
YB Senator Datuk Zainuddin Maidin<br />
YBhg Tan Sri Dato’ Seri Utama Abdul Samad Idris<br />
YBhg Tan Sri Dato’ Abdullah Ahmad<br />
YBhg Dato’ Hj Nasir Hj Mat Piah<br />
YBhg Tan Sri Dato’ Hj Husein Ahmad<br />
YM Raja Ahmad Aminollah Raja Abdullah<br />
YBhg Dato’ Saad Hj Man<br />
YB Datuk Ruhanie Hj Ahmad<br />
Encik Azizi Meor Ngah<br />
6 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
COMPANY SECRETARY<br />
Cik Sharina Saidon<br />
REGISTERED OFFICE<br />
46M, Jalan Lima<br />
Off Jalan Chan Sow Lin<br />
55200 Kuala Lumpur<br />
Tel : 03-221 7055<br />
Fax: 03-222 7876 / 222 0911<br />
REGISTRAR<br />
Tenaga Koperat Sdn <strong>Bhd</strong><br />
20th Floor, IGB Plaza<br />
Jalan Kampar<br />
Off Jalan Tun Razak<br />
50400 Kuala Lumpur<br />
STOCK EXCHANGE<br />
LISTING<br />
Main Board<br />
Kuala Lumpur Stock Exchange<br />
AUDITOR<br />
PricewaterhouseCoopers<br />
PRINCIPAL BANKERS<br />
Malayan Banking Berhad<br />
RHB Bank Berhad
YBhg Tan Sri<br />
Kamarul Ariffin<br />
Mohamed Yassin<br />
Encik<br />
Azizi Meor Ngah<br />
YBhg Tan Sri Dato’<br />
Abdullah Ahmad<br />
YBhg Dato’<br />
Saad Hj Man<br />
YBhg Dato’ Hj Nasir<br />
Hj Mat Piah<br />
YB Senator Datuk<br />
Zainuddin Maidin<br />
YBhg Tan Sri Dato’<br />
Seri Utama Abdul<br />
Samad Idris<br />
YM Raja Ahmad<br />
Aminollah Raja<br />
Abdullah<br />
YB Datuk<br />
Ruhanie Hj Ahmad<br />
Cik Sharina Saidon
Senior M ANAGEMENT<br />
Tan Sri Kamarul Ariffin Mohamed Yassin<br />
Executive Chairman<br />
Senator Datuk Zainuddin Maidin<br />
Deputy Executive Chairman<br />
Encik Azizi Meor Ngah<br />
Group Executive Director<br />
Encik Mohd Khalid Mohd<br />
Group Editor-in-Chief<br />
Encik Khamarul Baharain Sulaiman<br />
Chief Operating Officer<br />
Corporate S ERVICES<br />
Encik Mazlan Haron<br />
Group Manager, Human Resource<br />
Puan Latifah Hamzah<br />
Senior Manager, Corporate Communications<br />
Cik Rozita Yusoff<br />
Financial Controller<br />
Cik Sharina Saidon<br />
Legal Manager/Company Secretary<br />
8 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
Encik Ruslan Abd Rahman<br />
Chief Executive Officer, UPD Sdn <strong>Bhd</strong><br />
YM Tengku Mohamed Taib<br />
Group General Manager, Advertising<br />
Encik Che Mat Abd Ghani<br />
Acting Group Manager, Printing<br />
Cik Roselina Johari<br />
Group Manager, Publishing<br />
Encik Ahmad Hilmi Hashim<br />
Property Manager<br />
Encik Zulkifli Basharuddin<br />
Internal Audit Manager<br />
Encik Fareed Abdul Ghani<br />
Acting Manager, Corporate Planning
Management T EAM<br />
PUBLISHING<br />
Encik Wee Teck Kee<br />
General Manager, Marketing & Circulation<br />
Encik Hamzah Sidek<br />
Assistant Group Editor-in-Chief<br />
Puan Maimunah Yusoff<br />
Head of Magazine<br />
Encik Ishak Hamzah<br />
General Manager,<br />
<strong>Utusan</strong> Publications & Distributors Sdn <strong>Bhd</strong><br />
ADVERTISING<br />
Encik Abdul Rashid Jamil<br />
General Manager, Print Division, UMES<br />
Encik Robert Wong<br />
Managing Director, Advance Screen Sdn <strong>Bhd</strong><br />
PRINTING<br />
Cik Mesriah Kadiran<br />
General Manager, <strong>Utusan</strong> Binders Sdn <strong>Bhd</strong><br />
Encik Ahmad Mohd Yusof<br />
Production Manager, <strong>Utusan</strong> Printcorp Sdn <strong>Bhd</strong><br />
INFORMATION TECHNOLOGY &<br />
MULTIMEDIA<br />
Puan Chai Lee Fung<br />
General Manager, Net Space Learning Sdn <strong>Bhd</strong><br />
Encik Felix Miller<br />
General Manager, <strong>Utusan</strong> Multimedia Sdn <strong>Bhd</strong><br />
Puan Noridzan Kamal<br />
Senior Manager, Group MIS & Software Development<br />
EVENT MANAGEMENT<br />
Encik Shaharuman Shahadan<br />
Executive Director, Forum Exposition Sdn <strong>Bhd</strong><br />
INVESTMENT HOLDINGS<br />
Allan Clement George<br />
Manager, Juasa Holdings Sdn <strong>Bhd</strong><br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
9
Royal Code Of Conduct<br />
The Taj al-Salatin (Mahkota Raja-Raja) –<br />
Moral Philosophical Works and the Royal Symbolic<br />
System of Malay History<br />
The Taj al-Salatin<br />
(Mahkota Raja-Raja),<br />
Penang, 31 July 1824<br />
(4 Zulhijah 1239)<br />
Its original manuscript was written by Bukhari Johori in 1603 and<br />
copied by the scribe, Muhammad bin Umar Syeikh Farid of<br />
Penang, dated 4 Zulhijjah 1239 (31 July 1824). Delving into the<br />
subject of morality and philosophy, it devotes two of its 24 chapters on<br />
the conduct of royal scribes and envoys.<br />
As in Malay literature and historical texts pertaining to court<br />
etiquette and customs, letter-writing indulged in lengthy reception of<br />
royal correspondence in court. The letter’s form represented the King’s<br />
command and presence. It had become the designated authority, granting the<br />
letter with supreme status as the King himself.<br />
In its wordings contained within this letter, the position between sender and<br />
receiver revealed the political and diplomatic strata of early Malay<br />
government.<br />
The annals of the “Buku Sejarah <strong>Melayu</strong>” sheds light on events<br />
pertaining to letters that are believed to have originated in the 16th century.<br />
Rendered in ink, colours and gold on burnished English paper, its<br />
illumination and painstaking magnificence exudes a timelessness, skills and<br />
dexterity of the calligrapher etched forever in a bygone age.
Audit C OMMITTEE<br />
TERMS OF REFERENCE OF THE AUDIT COMMITTEE<br />
Members of the Committee<br />
Designation in the Company<br />
YBhg Tan Sri Dato’ Seri Utama Abdul Samad Idris<br />
Chairman<br />
Director – Independent Non-Executive<br />
YBhg Dato’ Hj Nasir Hj Mat Piah<br />
Director – Independent Non-Executive<br />
YM Raja Ahmad Aminollah Raja Abdullah<br />
Director – Independent Non-Executive<br />
YB Datuk Ruhanie Hj Ahmad<br />
Director – Independent Non-Executive<br />
12 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
Secretaries of the committee<br />
Cik Sharina Saidon<br />
Company Secretary<br />
Encik Zulkifli Basharuddin<br />
Internal Audit Manager<br />
CONSTITUTION<br />
The Board of Directors of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad had on 14 January 1994 established a Committee of<br />
the Board to be known as the Audit Committee. The authority, functions and duties of the Committee shall extend<br />
to <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad and all its subsidiaries (collectively hereinafter referred to as “the Group”).<br />
OBJECTIVES<br />
The Audit Committee has been formed with the following objectives in view:a.<br />
Ensure openness, integrity and accountability in the Group’s activities so as to safeguard the rights and interests<br />
of the shareholders.<br />
b. Provide assistance to the Board in fulfilling its fiduciary responsibilities as they relate to the Group’s<br />
management and internal controls, accounting policies and financial reporting.<br />
c. Improve the Group’s business efficiency, the quality of the accounting and audit functions and strengthening<br />
the public’s confidence in the Group’s reported results.<br />
d. Provide by way of regular meetings, a direct line of communication between the Board and the External and<br />
Internal Auditors.<br />
e. Enhance the independence of the external and internal audit functions.<br />
f. Create a climate of discipline and control which will reduce the opportunity for fraud.<br />
MEMBERSHIP<br />
The members of the Committee shall be appointed by the Board of Directors of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
from among their number and shall comprise not fewer than three (3) members of whom a majority shall not be:a.<br />
Executive Directors of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad, or any related corporation;<br />
b. a spouse, parent, brother, sister, son or adopted son, daughter or adopted daughter of an Executive Director of<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad or any related corporation;<br />
c. a person having a relationship which, in the opinion of the Board of Directors, would interfere with the exercise<br />
of independent judgement of the Audit Committee.<br />
The Chairman of the Audit Committee shall be elected by the Committee from among them who is not an<br />
Executive Director or employee of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad or any related corporation.
AUTHORITY<br />
The Committee is authorised by the Board of Directors to:a.<br />
investigate any activity within its terms of reference;<br />
b. seek any information it requires from any employee and all employees are directed to co-operate with any<br />
request made by the Committee;<br />
c. obtain external legal or other independent professional advice and to secure the attendance of outsiders with<br />
relevant experience and expertise if it deems fit.<br />
FUNCTIONS AND DUTIES<br />
The duties of the Committee shall be:a.<br />
to consider and recommend the appointment of the External Auditors, the audit fee, and any questions of<br />
resignation or dismissal;<br />
b. to discuss with the External Auditors before the audit commences, the nature and scope of the audit, and<br />
ensure co-ordination where more than one audit firm is involved;<br />
c. to review the half-year and annual financial statements before submission to the Board, focussing particularly on:-<br />
– any changes in accounting policies and practices<br />
– major judgemental areas<br />
– significant adjustments resulting from the audit<br />
– the going concern assumption<br />
– compliance with accounting standards<br />
– compliance with stock exchange and legal requirements;<br />
d. to review any related party transactions within the Company or Group and any other major transactions outside<br />
the normal course of business of the Company and Group;<br />
e. to discuss problems and reservations arising from the statutory audits, and any matters the Auditor may wish<br />
to discuss (in the absence of Management or Group Executive Director where/when necessary);<br />
f. to approve the Group Internal Audit Charter and ensure that the internal audit function is adequately resourced<br />
and has appropriate standing in the Group;<br />
g. to approve the appointment of the Head of the Internal Audit Department;<br />
h. to review the internal audit programme, consider the major findings of internal audit investigations and<br />
Management’s response;<br />
i. to keep under review the effectiveness of internal control systems and in particular review the External Auditors’<br />
Management Letter and Management’s response;<br />
j. to review and ensure the co-ordination of audit approach between the External and Internal Auditors; and<br />
k. to consider other topics as defined.<br />
MEETINGS<br />
a. Meetings shall be held not less than two (2) times a year.<br />
b. Upon the request of any member of the Committee, the Head of the Internal Audit or the External Auditors,<br />
the Chairman of the Committee shall convene a meeting of the Committee to consider any matters arising.<br />
c. The quorum for a meeting of the Committee shall be two (2) members. In the absence of the Chairman, the<br />
members present shall elect a Chairman for the meeting from amongst the members present.<br />
d. The meetings of the Committee shall be governed by the provisions contained in the Memorandum and Articles<br />
of Association of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad for regulating the meetings and proceedings of Directors.<br />
e. Directors of the Board who are not members of the Committee may also attend the meetings of the<br />
Committee, but they shall not have any voting rights.<br />
f. The meetings of the Committee shall normally be attended by the Head of the Internal Audit and the<br />
Management of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad, if required, shall be represented by the Executive Chairman<br />
and the Group Executive Director.<br />
g. The Committee shall meet the External Auditors at least twice a year. At least once a year the Committee shall<br />
meet the External Auditors without the Management or the Group Executive Director present.<br />
h. The Company Secretary or the Internal Auditor shall be appointed as the Secretary of the Committee who<br />
shall circulate the minutes of meeting of the Committee to all members of the Board.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
13
Group F IVE Y EAR F INANCIAL S UMMARY<br />
CONSOLIDATED BALANCE SHEET<br />
As at 31 December<br />
In RM’000 1999 1998 1997 1996 1995<br />
Share Capital 77,373 77,373 77,373 77,373 77,373<br />
Reserves 76,471 67,866 88,750 52,431 49,845<br />
Shareholders’ Fund 153,844 145,239 166,123 129,804 127,218<br />
Minority Interest 1,239 989 908 7,160 6,071<br />
Deferred Liabilities 146,867 151,995 48,313 50,722 43,960<br />
300,000 297,301<br />
250,000<br />
200,000<br />
150,000<br />
100,000<br />
50,000<br />
0<br />
Group Turnover<br />
RM '000<br />
262,327<br />
284,903<br />
14 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
261,198<br />
225,999<br />
60,000<br />
45,000<br />
30,000<br />
15,000<br />
0<br />
-150,000<br />
-300,000<br />
301,950 298,223 215,344 187,686 177,249<br />
Fixed Assets 302,365 293,072 261,884 167,301 129,022<br />
Other Assets 9,829 10,297 9,687 11,892 13,072<br />
Current Assets 156,793 152,279 178,224 152,995 147,479<br />
Total Assets 468,987 455,648 449,795 332,188 289,573<br />
Current Liabilities (167,037) (157,425) (234,451) (144,502) (112,324)<br />
301,950 298,223 215,344 187,686 177,249<br />
Net Tangible Assets Per Share (RM) 1.99 1.88 2.15 1.68 1.64<br />
12,985<br />
Group Profit<br />
Before Taxation<br />
RM '000<br />
(18,548)<br />
50,126<br />
11,972<br />
11,353<br />
60<br />
45<br />
30<br />
15<br />
0<br />
-15<br />
-30<br />
Adjusted Net<br />
Earnings Per Share<br />
Sen<br />
’99 ’98 ’97 ’96 ’95 ’99 ’98 ’97 ’96 ’95 ’99 ’98 ’97 ’96 ’95<br />
16.9<br />
(27.1)<br />
53.2<br />
7.5<br />
(3.2)
CONSOLIDATED PROFIT AND LOSS ACCOUNT<br />
As at 31 December<br />
In RM’000 1999 1998 1997 1996 1995<br />
Group Turnover 297,301 262,327 284,903 261,198 225,999<br />
Profit/(Loss) Before Taxation 12,985 (18,548) 50,126 11,972 11,353<br />
Taxation 316 (2,322) (8,340) (4,789) (7,319)<br />
Profit/(Loss) After Taxation 13,301 (20,870) 41,786 7,183 4,034<br />
Minority Interest (250) (117) (648) (1,347) (1,551)<br />
Profit/(Loss) After Taxation 13,051 (20,987) 41,138 5,836 2,483<br />
Number Of Shares In Issue (’000) 77,373 77,373 77,373 77,373 77,373<br />
Adjusted Net Earnings/(Loss)<br />
Per Share (sen) 16.9 (27.1) 53.2 7.5 (3.2)<br />
Adjusted Gross Dividend<br />
Per Share (sen) 8.0 — 7.0 6.0 5.0<br />
600,000<br />
500,000<br />
400,000<br />
300,000<br />
200,000<br />
100,000<br />
0<br />
Total Assets<br />
RM '000<br />
468,987<br />
455,648<br />
449,795<br />
332,188<br />
289,573<br />
180,000<br />
150,000<br />
120,000<br />
90,000<br />
60,000<br />
30,000<br />
0<br />
153,844<br />
Shareholders’ Fund<br />
RM '000<br />
145,239<br />
166,123<br />
129,804<br />
127,218<br />
2.4<br />
2.0<br />
1.6<br />
1.2<br />
0.8<br />
0.4<br />
0<br />
Net Tangible Assets<br />
Per Share<br />
RM<br />
’99 ’98 ’97 ’96 ’95 ’99 ’98 ’97 ’96 ’95 ’99 ’98 ’97 ’96 ’95<br />
1.99<br />
1.88<br />
2.15<br />
1.68<br />
1.64<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
15
Status Symbols<br />
Letters with three headings – Procedures in letter writing<br />
Letters with three<br />
headings, Bima,<br />
7 October 1823<br />
(1 Safar 1239)<br />
Almost all Malay letters between correspondence of the 18th<br />
and 19th century bore a heading with short Islamic verses,<br />
written in Arabic at the top.<br />
The positioning of the headings determined the rank of sender<br />
and recipient, practiced by society at the time; usually with two<br />
headings, this official letter from Sultan Ismail of Bima, to<br />
Baron van der Capellen in Batavia is unique with three<br />
illuminated headings in its motifs.<br />
According to the kitab terasul, the official manual of correct Malay letter<br />
writing, written by M. Abdul Nasir, it writes, if a person of lesser<br />
ranking sends a letter to a dignitary, the heading should appear on the left;<br />
if the correspondents are of the same rank, the heading must be in the middle;<br />
and in letters from a ruler or dignitary to a person of lower ranking, the<br />
headings will appear on the right.<br />
Delicately drafted by the finest of Malay calligraphers, with the artistic<br />
flair of the illuminator in ink, colours and gold on paper, reflecting a time<br />
transcended culture of divine respect in rank and status.
Chairman’s S TATEMENT<br />
Dear Shareholders,<br />
The <strong>Utusan</strong> <strong>Melayu</strong> Group of Companies can look back on 1999 with satisfaction and a sense of achievement.<br />
A two-prong strategy adopted earlier to reduce costs and a steady shift towards the increasing use of technology<br />
in our operations have paid off during the year. Against the backdrop of a reviving economy, this has helped in<br />
no small measure in bringing our financial performance back into positive territory.<br />
The Group is also fortunate to have emerged from the economic recession relatively unscathed. Even at the worst<br />
of times, we did not encounter any cash-flow problems affecting our operations, which continued at optimum<br />
levels. If anything, the economic downturn has demonstrated our resilience and indeed, we have come out of it<br />
a leaner, more efficient and intensely focused Group. Nor has it derailed our growth process. Some years ago we<br />
set our sights to be a leading multiple media communications company in the country. Today we are well on our<br />
way towards achieving this vision. The world-wide Internet revolution bears out the conviction that we are<br />
moving in the right direction.<br />
On behalf of the Board of Directors, I am pleased to present this Annual Report and Audited Accounts of the<br />
<strong>Utusan</strong> <strong>Melayu</strong> Group of Companies for the financial year ended 31 December 1999.<br />
FINANCIAL PERFORMANCE<br />
For 1999, Gross Domestic Product growth has been conservatively projected at 1% against a contraction of 6.7%<br />
in 1998. This has had a positive impact on the Group’s respective businesses, with almost all our subsidiaries<br />
returning to the black. At the same time, the turnaround in the Group’s financial performance was also achieved<br />
on the back of earlier investments in new machinery and technology which began to bear fruit only recently.<br />
During the year under review, the Group turnover was recorded at RM297.3 million, up 13.3% from RM262.3<br />
million recorded for the previous corresponding period. From a loss of RM18.5 million incurred in 1998,<br />
the Group is back on to more familiar grounds, achieving a profit before tax of RM13.0 million.<br />
18 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
Left: Sri <strong>Utusan</strong>, the printing plant, is the heart and<br />
soul of perpetual activity, day and night.<br />
Right: Our warehouse has the capacity for storing<br />
massive supplies of newsprint, delivered for our<br />
printing operations.
THE STAFF ARE ON PAR LEVEL TO COMPETENTLY HANDLE THE TECHNOLOGICALLY SOPHISTICATED<br />
WOHLENBERG PERFECT BINDING LINE.
Chairman’s S TATEMENT<br />
Our Advertising Division, which saw a 22% increase<br />
in advertising revenue during the year, remained the<br />
main contributor to the Group’s profitability.<br />
The year also saw our Multimedia Division<br />
registering a total turnover of RM12.9 million, which<br />
is an encouraging start for a relative newcomer.<br />
An increase in circulation of our publications and cover<br />
prices also contributed towards an improved turnover.<br />
CORPORATE DEVELOPMENTS<br />
As a Group that is still growing, we are continually<br />
fine-tuning our portfolio of businesses activities.<br />
To this end, we are divesting businesses that are no<br />
longer profitable or do not fit in with our vision of<br />
what we want to be.<br />
As reported last year, in our efforts to get the best from<br />
<strong>Utusan</strong>’s investment portfolio, we ceased the operations<br />
of two wholly-owned subsidiaries, <strong>Utusan</strong> Audio Sdn<br />
<strong>Bhd</strong> and <strong>Utusan</strong> <strong>Melayu</strong> (Singapura) Pte Ltd.<br />
While selectively hiving-off certain businesses,<br />
we remain alert to new business opportunities that<br />
support and add value to the Group’s operations.<br />
A new addition to our stable of companies is Forum<br />
Exposition Sdn <strong>Bhd</strong>, a leading events management<br />
company specialising in organising product launches,<br />
trade exhibitions, conferences and other events.<br />
20 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
The year 2000 will see the <strong>Utusan</strong> Group embark on<br />
a far-reaching restructuring exercise. Over the last<br />
few years, the Group has undergone a major<br />
transformation. From the printing and publishing<br />
house we used to be, we are rapidly evolving into a<br />
multiple media communications company. We will<br />
now need to streamline our operations to reflect the<br />
<strong>Utusan</strong> Group that is emerging and to ensure an<br />
optimal distribution of resources and energy. This<br />
would also be an opportune moment to look into<br />
and address all other aspects of our operations from<br />
various other perspective. By doing so, we will ensure<br />
that our interests, and ultimately those of our<br />
shareholders, will be safeguarded.<br />
OPERATIONAL HIGHLIGHTS<br />
On the operational front, 1999 was an eventful year<br />
for the <strong>Utusan</strong> Group. The Group continued to<br />
make headway to strengthen its position in several<br />
core business areas through strategic alliances. It was<br />
also a year of achievements. Four of our publications<br />
– <strong>Utusan</strong> <strong>Malaysia</strong>, Mingguan <strong>Malaysia</strong>, Mangga and<br />
Mastika – garnered the top spot in a poll survey<br />
conducted by A C Nielson.<br />
Above: Some of our book publications have garnered<br />
top spot recognition in the market.<br />
Left: Venturing into Motion Plus outdoor advertising<br />
has been a major success into new opportunities.
UTILIZING STATE-OF-THE-ART TECHNOLOGY, THE GEOMAN PRINTING MACHINE AT SRI UTUSAN,<br />
ON COURSE TO ACHIEVE ISO 9000.
Chairman’s S TATEMENT<br />
A new chapter has opened for our printing<br />
operations with the 20 January 2000 signing of a<br />
support agreement with the Italian printing company,<br />
Fratelli Spada S.p.A. This link-up paves the way for<br />
<strong>Utusan</strong> <strong>Melayu</strong> to become a global player virtually<br />
overnight in the international printing industry.<br />
Fratelli Spada is expected to bring to the jointventure<br />
a crop of international contracts, worth on<br />
average some USD7 million a year for the first five<br />
years. In addition, <strong>Utusan</strong> will now have access to<br />
Spada’s training facilities in Rome for its staff as well<br />
as new print-costing software purpose-designed by<br />
Spada. We will therefore be able to raise the<br />
standards of print quality still further, which will put<br />
the <strong>Utusan</strong> Group on course for achieving ISO 9000<br />
certification. With the delivery of a Heidelberg M600<br />
printing press purchased at a cost of RM18 million,<br />
we are now equipped to handle high-end print jobs<br />
and the expected influx of work from overseas.<br />
To fully capitalise on our joint-venture with Fratelli<br />
Spada, we are wiring our printing complex at Bangi<br />
to receive manuscripts and artwork of print materials<br />
via the Internet.<br />
In our multimedia business, three recent signings<br />
have set us firmly on the path towards establishing<br />
ourselves as a significant player in <strong>Malaysia</strong>’s<br />
emerging digital economy. A signing on 28 January<br />
2000 saw the sale of a 25% stake in <strong>Utusan</strong><br />
Multimedia Sdn <strong>Bhd</strong> to Asia Online Internet Services<br />
Sdn <strong>Bhd</strong>. By forging a strategic alliance with one of<br />
the most established Internet Service Providers in the<br />
region, the growth of <strong>Utusan</strong> Multimedia will be<br />
22 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
accelerated. For <strong>Utusan</strong>, the deal would bring about<br />
opportunities for a major technology transfer,<br />
enhanced training for our people and the funds we<br />
need to reinvest in Information Technology, especially<br />
in e-commerce and logistics management. It will also<br />
give us both global branding and access to an<br />
international network. All these would position us to<br />
provide top quality, end-to-end Internet solutions for<br />
our corporate clients.<br />
Two other joint-venture signings on 3 February<br />
2000, will help establish the <strong>Utusan</strong> Group as a<br />
market leader in multimedia and Internet based<br />
education and training. Our wholly-owned<br />
subsidiary, Net Space Learning Sdn <strong>Bhd</strong>, an MSCstatus<br />
company, has teamed up with the Singaporebased<br />
Sky Media Pte Ltd to localise an interactive<br />
education service called SKYTUTOR for the<br />
<strong>Malaysia</strong>n market. With a student population of five<br />
million in <strong>Malaysia</strong>, there is a huge market that the<br />
<strong>Utusan</strong> Group can tap. SKYTUTOR is the single<br />
most comprehensive solution for implementing the<br />
‘smart learning’ concept of education and covers four<br />
core subjects catering for 11 education levels, from<br />
Primary One up to Form Five. The product’s<br />
interactive education service is delivered via a<br />
combination of CD-ROMs and the Internet.<br />
Above: Breaking new grounds into the 21st century,<br />
with the nation’s first LED mobile electronic screen.<br />
Left: The printed publications are packed and ready<br />
for delivery through our distribution channels.
CD-ROMS TAP FUTURE GROWING MARKETS, IN PARTICULAR THE “SMART LEARNING”<br />
CONCEPT OF INTERACTIVE INFORMATION AND EDUCATION SERVICES.
Chairman’s S TATEMENT<br />
In the other venture, <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>)<br />
Berhad and the British Council will collaborate to<br />
design, develop and market a course on “Secretarial<br />
Skills For The New Millennium” targeted at<br />
<strong>Malaysia</strong>n corporations and businesses. The course<br />
content will focus on the two key skills of English,<br />
the lingua franca of the global economy and IT,<br />
the essential tool to compete successfully in the<br />
digital age. In what is an ideal partnership, the<br />
British Council will handle the language aspects of<br />
the course while our Net Space Learning Centre will<br />
take care of the technology component.<br />
<strong>Utusan</strong>’s Advertising Division is the Group’s cash cow.<br />
In the outdoor billboard advertising business, we are<br />
the number one player in <strong>Malaysia</strong>. To consolidate<br />
our position, we have recently acquired the country’s<br />
first LED mobile electronic screen, which can be used<br />
for entertainment, concerts and sporting events.<br />
Our overseas forays produced mixed results, whilst<br />
business is booming in Indonesia with very<br />
encouraging returns, we are still undertaking<br />
developmental work in India.<br />
No report to our shareholders would be complete<br />
without some mention of the Y2K or Millennium<br />
Bug. The <strong>Utusan</strong> Group has invested considerable<br />
resources and efforts to ensure all our critical systems<br />
24 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
have been effectively bug-proofed to ensure<br />
Y2K compliance. No doubt as a result of these<br />
precautionary measures. I am pleased to report a<br />
smooth roll-over to the new millennium, with nothing<br />
untoward happening to disrupt our operations.<br />
ACKNOWLEDGEMENTS<br />
One thing we can be certain of is that our success in<br />
navigating the economic turbulence of the past two<br />
years would not have been possible without the<br />
concerted efforts and commitment of various parties;<br />
the Management and staff of the <strong>Utusan</strong> Group,<br />
our shareholders, customers, suppliers, business<br />
associates and the relevant authorities.<br />
On behalf of the Board of Directors, I extend my<br />
sincere appreciation and thanks.<br />
Datuk Jalaludin Bahaudin left the Board during the<br />
year. We thank him for his contributions and wish<br />
him every success in his future undertakings. Last but<br />
not least, I would like to thank my fellow members<br />
of the Board for their support and wise counsel.<br />
KAMARUL ARIFFIN<br />
A strategic alliance between <strong>Utusan</strong> Multimedia Sdn <strong>Bhd</strong><br />
and Asia Online Internet Services Sdn <strong>Bhd</strong>.
MULTIMEDIA, THE TECHNOLOGICAL TOOL OF EDUCATION AND ENTERTAINMENT IN MERGING<br />
INTERACTIVE COMMUNICATIONS.
Corporate C ALENDAR<br />
1 4 February 1999<br />
Y.B. Dato’ Seri Rafidah Aziz launches the “Almanak<br />
<strong>Malaysia</strong> 3.0 1998/1999” CD-ROM at the Putra World<br />
Trade Centre.<br />
2 26 March – 4 April 1999<br />
Launch of Disney On Ice – Toy Story promotional<br />
campaign by the Patron, YBhg Datin Seri Rosmah Mansor.<br />
3 28 April 1999<br />
<strong>Utusan</strong> <strong>Melayu</strong> (M) Berhad’s 31st Annual General Meeting.<br />
4 9 June 1999<br />
Signing ceremony between <strong>Utusan</strong> <strong>Melayu</strong> (M) Berhad and<br />
Forum Exposition Sdn <strong>Bhd</strong>.<br />
5 13 July 1999<br />
The launching of Motion Plus’s revolutionary outdoor<br />
billboard from UPD Sdn <strong>Bhd</strong>.<br />
26 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
4 7<br />
1 2<br />
5<br />
8<br />
3 6<br />
9<br />
6 14 July 1999<br />
At “Malam Puisi Usman Awang”, held in appreciation of the<br />
contribution from the National Laureate.<br />
7 22 July 1999<br />
The <strong>Malaysia</strong>n Food & Beverage International Exhibition<br />
1999 organized by Forum Exposition Sdn <strong>Bhd</strong>.<br />
8 24-27 July 1999<br />
The <strong>Utusan</strong> was honoured as the official Bahasa <strong>Malaysia</strong><br />
newspaper at the 4th Langkawi International Dialogue.<br />
9 13-14 August 1999<br />
National conference for Women Editors which was held in<br />
conjunction with Majalah Wanita’s 30th Anniversary.<br />
10 15 August 1999<br />
SPB Tuanku Siti Aishah graced the auspicious 30th Anniversary<br />
Dinner of Majalah Wanita.
10 13<br />
16<br />
11 14 17<br />
12 15 18<br />
11 2 September 1999<br />
The prize giving ceremony of Hadiah Sastera <strong>Utusan</strong>-Public<br />
Bank.<br />
12 12 September 1999<br />
A historical record breaking feat-105 couples participated in<br />
the Saji-Nestle-Shell Gas Cooking Contest.<br />
13 25 September 1999<br />
<strong>Utusan</strong> <strong>Melayu</strong> and the Islamic Arts Muzeum jointly<br />
organized the calligraphic writing competition themed<br />
“Manifestasi Perdana Seni Khat”.<br />
14 9 October 1999<br />
The launch of Jimmy Choo’s Exclusive Shoe Exhibition in<br />
conjunction with <strong>Malaysia</strong>n Fashion Week ’99.<br />
15 15 October 1999<br />
Inspirational ... the Gala Fashion Show & the finals of the<br />
Embroidery Fashion Competition for the Jarum Berlian Trophy.<br />
19<br />
16 30 October 1999<br />
<strong>Utusan</strong> <strong>Malaysia</strong> and Bank Rakyat were joint organizers of<br />
‘Seminar Sastera’.<br />
17 5 November 1999<br />
Nostalgic moments in the staging of Umno’s struggle<br />
by Teater Warisan.<br />
18 12 November 1999<br />
One for the album – the <strong>Utusan</strong> pensioners together with senior<br />
management in rekindling their contributions for posterity.<br />
19 14 November 1999<br />
Fostering the spirit of sports & teamwork at the <strong>Utusan</strong><br />
Group’s Inter Departmental Sports Carnival.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
27
Sentiments and Sensitivity of Love in the<br />
Resplendence of the Malay Language<br />
Syair surat kirim kepada perempuan<br />
– Genre of Poetic Romanticism in Malay Love Letters<br />
Syair surat kirim<br />
kepada perempuan.<br />
1796<br />
One of the numerous Malay syair and pantun stanzas in the form of<br />
love letters was a manuscript copy by Ibrahim, a scribe who was<br />
employed by Sir Thomas Stamford Raffles. Unfortunately,<br />
samples of surviving Malay personal love letters between two ordinary<br />
people remains difficult to be studied and were rarely recorded on<br />
original manuscripts.<br />
The contents of a Malay love letter were purely sentiments, expressed<br />
in glorious poetry. For example, in the printed manual of letter<br />
writing of its time, praises in love letters would start in poems that began with:<br />
Al-Hamd li-‘llah Rabb al-‘Alamin<br />
cahayanya terang laksana cermin<br />
seperti pohon kayu beringin<br />
lemah lembut ditiup angin<br />
As the essence of the Malay love letter was normally structured in this<br />
form, the dividing line between love letters as poetry and poetry in its form<br />
as love letters remains faint and distant.<br />
The manuscript’s execution reflects meticulous detail, combining ornamental<br />
geometrical and organic floral motifs. Its poem superfluous and sensuous, the<br />
inks and colours on English paper permeating a moment in time, captured<br />
in the zeal and flamboyance of romance.
Analysis O F S HAREHOLDINGS as at 29 February 2000<br />
Authorised Share Capital – RM150,000,000<br />
Paid-Up Share Capital – RM77,372,837<br />
Class Of Shares – Ordinary shares of RM1.00 each<br />
Size of Shareholdings No. of Shareholders % of Shareholders No. of Shares % of Shares<br />
1 – 499 565 10.40 124,937 0.16<br />
500 – 5,000 4,276 78.70 7,345,974 9.49<br />
5,001 – 10,000 308 5.67 2,513,694 3.25<br />
10,001 – 100,000 255 4.69 7,039,356 9.10<br />
100,001 – 1,000,000 27 0.50 6,916,563 8.94<br />
1,000,001 & above 2 0.04 53,432,313 69.06<br />
Total 5,433 100 77,372,837 100<br />
Location of Shareholdings No. of Shareholders % of Shareholders No. of Shares % of Shares<br />
<strong>Malaysia</strong> 5,345 98.39 76,642,259 99.06<br />
Other foreign countries 88 1.61 730,578 0.94<br />
Total 5,433 100 77,372,837 100<br />
20 LARGEST SHAREHOLDERS AS PER THE REGISTER OF MEMBERS AS AT 29 FEBRUARY 2000<br />
Name No. of Shares Percentage<br />
RHB Nominees (Tempatan) Sdn <strong>Bhd</strong> 45,113,956 58.31<br />
Pertubuhan Kebangsaan <strong>Melayu</strong> Bersatu or UMNO (United Malays National Organisation)<br />
Minister of Finance 8,318,357 10.75<br />
Arab-<strong>Malaysia</strong>n Nominees (Tempatan) Sdn <strong>Bhd</strong> 830,000 1.07<br />
Arab-<strong>Malaysia</strong>n Trustee <strong>Bhd</strong> for BHLB Pacific Dana Al-Ihsan<br />
Universal Trustee (<strong>Malaysia</strong>) Berhad 750,000 0.97<br />
BHLB Pacific Emerging Companies Growth Fund<br />
Syarikat Gunung Benum Sdn <strong>Bhd</strong> 557,000 0.72<br />
HSBC Nominees (Asing) Sdn <strong>Bhd</strong> 433,000 0.56<br />
BNY Brussels for Asiaval<br />
HWANG-DBS Custodian Nominees (Asing) Sdn <strong>Bhd</strong> 395,000 0.51<br />
DBS Bank for Five Arrows Southeast Asia Special Situation Trust<br />
Hussein Noordin Sdn Berhad 381,000 0.49<br />
Employees Provident Fund Board 377,000 0.49<br />
Citicorp Nominees (Asing) Sdn <strong>Bhd</strong> 300,000 0.39<br />
TNTC for Government of Singapore Investment Corporation Pte Ltd<br />
Cartaban Nominees (Asing) Sdn <strong>Bhd</strong> 296,000 0.38<br />
Lloyds TSB Bank Securities Services Chelmsford Sub 6632 for Five Arrows Asia Pacific Funds<br />
First Capital Investment Ltd 250,000 0.32<br />
HSBC Nominees (Asing) Sdn <strong>Bhd</strong> 215,000 0.28<br />
Bermuda Trust (Singapore) Limited for Five Arrows Asian Enterprise Trust<br />
Amanah Raya Nominees (Tempatan) Sdn <strong>Bhd</strong> 212,000 0.27<br />
Amanah Saham Bank Simpanan Nasional<br />
Permodalan BSN Berhad<br />
HSBC (<strong>Malaysia</strong>) Trustee Berhad 180,000 0.23<br />
OSK-UOB Small Cap Opportunity Unit Trust<br />
Affin-UOB Securities Sdn <strong>Bhd</strong> 161,000 0.21<br />
CLR for Amanah Raya Berhad for Amanah Saham Bank Simpanan Nasional<br />
Loh & Loh Corporation Berhad 156,000 0.20<br />
First Capital Insurance Limited 150,000 0.19<br />
OSK Nominees (Tempatan) Sdn Berhad 135,000 0.17<br />
Pledged Securities Account for Tan Kim San @ Tan Kim Sun<br />
Amsec Nominees (Asing) Sdn <strong>Bhd</strong> 130,000 0.17<br />
Fraser Securities Pte Ltd for Chu Chok Kim @ Chu Tso Chuan<br />
Total 59,340,313 76.69<br />
30 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Directors’ R EPORT for the year ended 31 December 1999<br />
The Directors submit their report together with the audited accounts of the Group and of the Company for the financial year ended<br />
31 December 1999.<br />
PRINCIPAL ACTIVITIES<br />
The principal activities of the Company during the financial year are to carry out the business of publication, printing and distribution<br />
of newspapers, magazines and books. The principal activities of the subsidiary companies during the financial year are set out in note<br />
15 to the accounts. There have been no significant changes in the nature of these activities during the financial year.<br />
FINANCIAL RESULTS<br />
The Group The Company<br />
RM RM<br />
Profit for the financial year after taxation and minority interests 13,050,706 11,721,195<br />
Unappropriated profit brought forward 47,184,519 40,552,690<br />
Profit available for appropriation 60,235,225 52,273,885<br />
Dividends (4,456,675) (4,456,675)<br />
55,778,550 47,817,210<br />
Transfer to capital reserve (360,000) —<br />
Unappropriated profit carried forward 55,418,550 47,817,210<br />
In the opinion of the Directors, the results of the operations of the Group and of the Company during the financial year have not<br />
been substantially affected by any item, transaction or event of a material and unusual nature.<br />
DIVIDENDS<br />
Dividends paid, declared or proposed since the end of the Company’s previous financial year were as follows:-<br />
(a) In respect of the financial year ended 31 December 1999:<br />
A proposed final dividend of 8% less tax at 28% 4,456,675<br />
MOVEMENTS ON RESERVES AND PROVISIONS<br />
There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in the notes to<br />
the accounts.<br />
RM<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
31
Directors’ R EPORT for the year ended 31 December 1999<br />
DIRECTORS<br />
The Directors in office since the date of the last report are:-<br />
Tan Sri Kamarul Ariffin Mohamed Yassin<br />
Tan Sri Dato’ Seri Utama Abdul Samad Idris<br />
Tan Sri Dato’ Haji Husein Ahmad<br />
Tan Sri Dato’ Abdullah Ahmad<br />
Dato’ Haji Nasir Haji Mat Piah<br />
Datuk Ruhanie Haji Ahmad<br />
Dato’ Saad Haji Man<br />
Senator Datuk Zainuddin Maidin<br />
Raja Ahmad Aminollah Raja Abdullah<br />
Azizi Meor Ngah<br />
Datuk Jalaludin Bahaudin (resigned on 25 March 1999)<br />
DIRECTORS’ INTERESTS<br />
According to the Register of Directors’ Shareholdings, particulars of Directors’ interests in the shares of the Company and its related<br />
corporations during the financial year were as follows:-<br />
No. of ordinary shares of RM1.00 each<br />
Balance Balance<br />
1.1.1999 Bought Sold 31.12.1999<br />
Shares in the Company<br />
Tan Sri Kamarul Ariffin Mohamed Yassin<br />
– direct 2 — — 2<br />
– indirect 10,000 — — 10,000<br />
Tan Sri Dato’ Seri Utama Abdul Samad Idris 896 — — 896<br />
Tan Sri Dato’ Haji Husein Ahmad 10,002 — — 10,002<br />
Tan Sri Dato’ Abdullah Ahmad<br />
– direct 2,000 — — 2,000<br />
– indirect 10,058 — — 10,058<br />
Dato’ Haji Nasir Haji Mat Piah 10,000 — — 10,000<br />
Senator Datuk Zainuddin Maidin 1,500 — — 1,500<br />
Raja Ahmad Aminollah Raja Abdullah 10,000 — — 10,000<br />
Azizi Meor Ngah 35,000 — (7,000) 28,000<br />
According to the Register of Directors’ Shareholdings, none of the other Directors in office at the end of the financial year has any<br />
interests in the shares of the Company and its related corporations.<br />
DIRECTORS’ BENEFITS<br />
Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than the fees and<br />
other emoluments shown in note 4 to the accounts) by reason of a contract made by the Company or a related corporation with the<br />
Director or with a firm of which he is a member or with a company in which he has a substantial financial interest.<br />
Neither during nor at the end of the financial year was the Company or any of its related corporations a party to any arrangement<br />
whose object was to enable the Directors to acquire benefits through the acquisition of shares in, or debentures of, the Company or<br />
any other body corporate.<br />
32 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Directors’ R EPORT for the year ended 31 December 1999<br />
OTHER STATUTORY INFORMATION<br />
Before the accounts of the Group and of the Company were made out, the Directors took reasonable steps:-<br />
(a) to ascertain the action taken in relation to the writing off of bad debts and the making of provision for doubtful debts and<br />
have satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful<br />
debts; and<br />
(b) to ensure that any current assets which were unlikely to realise their book values in the ordinary course of business have been<br />
written down to their estimated realisable values.<br />
At the date of this report, the Directors are not aware of any circumstances:-<br />
(a) which would render the amounts written off or provided for bad and doubtful debts of the Group and of the Company<br />
inadequate to any material extent or the values attributed to current assets of the Group and of the Company misleading; and<br />
(b) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the<br />
Company misleading or inappropriate.<br />
In the interval between the end of the financial year and the date of this report:-<br />
(a) no item, transaction or other event of a material and unusual nature has arisen which, in the opinion of the Directors, would<br />
substantially affect the results of the operations of the Group and of the Company for the current financial year; and<br />
(b) no charge has arisen on the assets of any company in the Group which secure the liability of any other person nor has any<br />
contingent liability arisen in any company in the Group.<br />
No contingent or other liability of any company in the Group has become enforceable or is likely to become enforceable within the<br />
period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may affect the ability of<br />
the Company and its subsidiary companies to meet their obligations when they fall due.<br />
At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in their report or the accounts<br />
which would render any amount stated in the accounts misleading.<br />
AUDITORS<br />
The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office.<br />
On behalf of the Board of Directors<br />
TAN SRI KAMARUL ARIFFIN MOHAMED YASSIN<br />
Director<br />
AZIZI MEOR NGAH<br />
Director<br />
Kuala Lumpur<br />
23 March 2000<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
33
Report O F T HE A UDITORS T O T HE M EMBERS of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
We have audited the accounts set out on pages 35 to 65. These accounts are the responsibility of the Company’s Directors.<br />
Our responsibility is to express an opinion on these accounts based on our audit.<br />
We conducted our audit in accordance with approved auditing standards in <strong>Malaysia</strong>. Those standards require that we plan and<br />
perform the audit to obtain reasonable assurance about whether the accounts are free of material misstatement. An audit includes<br />
examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the<br />
accounting principles used and significant estimates made by Directors, as well as evaluating the overall accounts presentation.<br />
We believe that our audit provides a reasonable basis for our opinion.<br />
In our opinion:-<br />
(a) the accounts give a true and fair view of the state of affairs of the Group and the Company as at 31 December 1999 and of the<br />
results of the Group and the Company and cash flows of the Group for the financial year ended on that date in accordance with<br />
the applicable approved accounting standards in <strong>Malaysia</strong>, and comply with the Companies Act, 1965; and<br />
(b) the accounting and other records and the registers required by the Act to be kept by the Company and the subsidiary companies<br />
of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.<br />
We have considered the accounts and the auditors’ report of the subsidiary company of which we have not acted as auditors which<br />
is indicated in note 15 to the accounts.<br />
We are satisfied that the accounts of the subsidiary companies that have been consolidated with the Company’s accounts are in form<br />
and content appropriate and proper for the purpose of the preparation of the consolidated accounts and we have received satisfactory<br />
information and explanations required by us for those purposes.<br />
The auditors’ reports on the accounts of the subsidiary companies were not subject to any qualification or any adverse comment made<br />
under subsection (3) of Section 174 of the Act.<br />
PRICEWATERHOUSECOOPERS<br />
[AF: 1146]<br />
Public Accountants<br />
MOHD DARUIS ZAINUDDIN<br />
[969/3/01(J/PH)]<br />
Partner<br />
Kuala Lumpur<br />
23 March 2000<br />
34 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Consolidated P ROFIT A ND L OSS A CCOUNT for the year ended 31 December 1999<br />
Note 1999 1998<br />
RM RM<br />
Turnover 3 297,301,416 262,327,306<br />
Operating profit/(loss) before taxation 4 12,253,387 (20,734,226)<br />
Share of profits less losses of associated companies 731,509 2,186,340<br />
Profit/(loss) before taxation 12,984,896 (18,547,886)<br />
Taxation 5 315,726 (2,321,746)<br />
Profit/(loss) after taxation but before minority interests 13,300,622 (20,869,632)<br />
Minority interests (249,916) (117,078)<br />
Profit/(loss) after taxation and minority interest 13,050,706 (20,986,710)<br />
Unappropriated profits brought forward 47,184,519 68,371,229<br />
Profit available for appropriation 60,235,225 47,384,519<br />
Dividends 6 (4,456,675) —<br />
55,778,550 47,384,519<br />
Transfer to capital reserve 9 (360,000) (200,000)<br />
Unappropriated profit carried forward 55,418,550 47,184,519<br />
Retained by:-<br />
The Company 47,817,210 40,552,690<br />
Subsidiary companies 3,634,802 2,462,389<br />
Associated companies 3,966,538 4,169,440<br />
55,418,550 47,184,519<br />
Earnings/(loss) per share 7 16.87 sen (27.12 sen)<br />
The above consolidated profit and loss account is to be read in conjunction with the notes to the accounts on pages 40 to 65.<br />
Auditors’ Report – Page 34.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
35
Consolidated B ALANCE S HEET as at 31 December 1999<br />
36 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
Note 1999 1998<br />
RM RM<br />
Share capital 8 77,372,837 77,372,837<br />
Reserves 9 76,470,999 67,865,755<br />
153,843,836 145,238,592<br />
Minority interests 1,239,618 989,702<br />
Long term liabilities<br />
Revolving underwriting facility 10 105,000,000 105,000,000<br />
Term loans 11 14,820,908 20,514,135<br />
Retirement benefits 17,723,989 15,514,706<br />
Deferred taxation 12 5,141,000 5,241,000<br />
Lease and hire purchase creditors 13 4,181,081 5,725,026<br />
146,866,978 151,994,867<br />
301,950,432 298,223,161<br />
Fixed assets 14 302,365,425 293,072,406<br />
Associated companies 15 6,324,373 7,196,400<br />
Investments 16 3,504,501 3,100,161<br />
Current assets 18 156,793,090 152,278,876<br />
Less:<br />
Current liabilities 21 167,036,957 157,424,682<br />
Net current liabilities (10,243,867) (5,145,806)<br />
301,950,432 298,223,161<br />
The above consolidated balance sheet is to be read in conjunction with the notes to the accounts on pages 40 to 65.<br />
Auditors’ Report – Page 34.
Profit A ND L OSS A CCOUNT for the year ended 31 December 1999<br />
Note 1999 1998<br />
RM RM<br />
Turnover 3 205,662,768 188,504,472<br />
Operating profit/(loss) before taxation 4 12,093,307 (5,510,188)<br />
Taxation 5 (372,112) (375,000)<br />
Profit/(loss) after taxation 11,721,195 (5,885,188)<br />
Unappropriated profits brought forward 40,552,690 46,437,878<br />
Unappropriated profit carried forward 52,273,885 40,552,690<br />
Dividends 6 (4,456,675) —<br />
Unappropriated profits carried forward 47,817,210 40,552,690<br />
The above profit and loss account is to be read in conjunction with the notes to the accounts on pages 40 to 65.<br />
Auditors’ Report – Page 34.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
37
Balance S HEET as at 31 December 1999<br />
38 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
Note 1999 1998<br />
RM RM<br />
Share capital 8 77,372,837 77,372,837<br />
Reserves 9 66,387,817 59,123,297<br />
143,760,654 136,496,134<br />
Long term liabilities<br />
Revolving underwriting facility 10 105,000,000 105,000,000<br />
Term loans 11 9,732,202 14,580,810<br />
Retirement benefits 14,494,143 12,972,301<br />
Deferred taxation 12 3,986,000 3,986,000<br />
Lease and hire purchase creditors 13 544,543 434,308<br />
133,756,888 136,973,419<br />
277,517,542 273,469,553<br />
Fixed assets 14 242,018,802 227,741,965<br />
Subsidiary companies 15 85,460,044 73,286,786<br />
Associated companies 16 1,117,836 1,125,761<br />
Investments 17 213,939 259,599<br />
Current assets 18 50,695,258 63,732,559<br />
Less:<br />
Current liabilities 21 101,988,337 92,677,117<br />
Net current liabilities (51,293,079) (28,944,558)<br />
The above balance sheet is to be read in conjunction with the notes to the accounts on pages 40 to 65.<br />
Auditors’ Report – Page 34.<br />
277,517,542 273,469,553
Consolidated C ASH F LOW S TATEMENT for the year ended 31 December 1999<br />
1999 1998<br />
RM RM<br />
CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES<br />
Cash receipts from customers 290,097,509 263,075,617<br />
Cash paid to suppliers, employees and for operating expenses (219,512,806) (248,931,395)<br />
Cash generated from operations 70,584,703 14,144,222<br />
Interest paid (11,401,334) (14,989,945)<br />
Income tax paid (5,136,393) (2,593,820)<br />
Net cash from/(used in) operating activities 54,046,976 (3,439,543)<br />
CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES<br />
Purchase of fixed assets (33,552,354) (47,279,917)<br />
Purchase of investments (450,000) —<br />
Acquisition of a subsidiary company, net of cash acquired (note 24) (389,845) —<br />
Net dividends received from associated companies 955,586 —<br />
Proceeds from disposal of fixed assets 1,139,737 2,024,329<br />
Interest received 447,959 1,425,945<br />
Dividends received 1,770 270,701<br />
Net cash used in investing activities (31,847,147) (43,558,942)<br />
CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES<br />
Proceeds from revolving underwriting facility — 105,000,000<br />
Repayment of short term borrowings (12,315,654) (68,563,301)<br />
Repayment of hire purchase facilities (1,692,798) (3,096,390)<br />
Repayment of term loans (4,879,070) (3,994,118)<br />
Dividends paid to the shareholders of the Company — (3,899,591)<br />
Net cash (used in)/from financing activities (18,887,522) 25,446,600<br />
Effects of the exchange rate changes on cash and cash equivalents (496) 3,289<br />
Net increase/(decrease) in cash and cash equivalents during the financial year 3,311,811 (21,548,596)<br />
Cash and cash equivalents at beginning of the financial year 5,138,627 26,687,223<br />
Cash and cash equivalents at end of the financial year 8,450,438 5,138,627<br />
Cash and cash equivalents comprise the following:-<br />
Fixed deposits with licensed banks 12,331,994 11,626,914<br />
Cash and bank balances 13,732,258 7,412,883<br />
Bank overdrafts (17,613,814) (13,901,170)<br />
8,450,438 5,138,627<br />
The above consolidated cash flow statement is to be read in conjunction with the notes to the accounts on pages 40 to 65.<br />
Auditors’ report – Page 34.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
39
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
1. BASIS OF PREPARATION OF THE ACCOUNTS<br />
The accounts of the Group and of the Company have been prepared in accordance with the applicable approved Accounting<br />
Standards in <strong>Malaysia</strong> and the provisions of the Companies Act, 1965.<br />
2. SIGNIFICANT ACCOUNTING POLICIES<br />
All significant accounting policies set out below are consistent with those applied in the previous financial year.<br />
Accounting convention<br />
The accounts are prepared under the historical cost convention, modified by the revaluation of land, buildings and plant and<br />
machinery.<br />
Basis of consolidation<br />
The consolidated profit and loss account and balance sheet include the accounts of the Company and all its subsidiary companies<br />
made up to the end of the financial year. The results of subsidiary companies acquired or disposed of during the financial year<br />
are included in the consolidated profit and loss account from the date of their acquisition or up to the date of disposal. Intercompany<br />
transactions are eliminated on consolidation and the consolidated accounts reflect external transactions only.<br />
The excess of the purchase price over the fair value of net assets of subsidiary companies at the date of acquisition is recognised<br />
as goodwill on consolidation and is written off in the year of acquisition.<br />
Associated companies<br />
The Group treats as associated companies those companies in which a long term equity interest of between 20 and 50 percent<br />
is held and where it exercises significant influence through management participation.<br />
The Group’s share of profits less losses of associated companies is included in the consolidated profit and loss account and the<br />
Group’s share of post-acquisition retained profits and reserves is added to the cost of investments in the consolidated balance<br />
sheet. These amounts are taken from the latest audited accounts of the associated companies with the same financial year end<br />
as the Group and where the financial year ends are not coterminous, the amounts are taken from the latest available<br />
management accounts.<br />
Investments<br />
Investments in quoted and unquoted shares held as long term investments are stated at cost unless there has been a permanent<br />
diminution in value, in which case, a provision is made. Income from these investments is included in the profit and loss<br />
account on a receipt basis.<br />
Currency translations<br />
Transactions in foreign currencies are translated to Ringgit <strong>Malaysia</strong> at exchange rates ruling at the transaction dates or<br />
at contracted rates, where applicable. At balance sheet date, monetary assets and liabilities resulting from foreign currency<br />
transactions are translated into Ringgit <strong>Malaysia</strong> at exchange rates ruling at the date or at contracted rates, where applicable.<br />
Exchange gain and losses are dealt with through the profit and loss account.<br />
The accounts of the foreign subsidiary company are translated into Ringgit <strong>Malaysia</strong> at the rates of exchange ruling at the<br />
balance sheet date. Exchange differences arising on the translation are included in the exchange fluctuation reserve account.<br />
40 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)<br />
Fixed assets and depreciation<br />
Freehold land is stated at cost. All other fixed assets are stated at cost or valuation less accumulated depreciation. Freehold land<br />
and capital work-in-progress are not depreciated. Leasehold land is amortised over the period of the lease. Depreciation of other<br />
fixed assets is calculated so as to write off the cost or valuation on a straight line basis over the expected useful lives of the<br />
assets concerned. The annual rates are:-<br />
Buildings 2% or amortised over lease period whichever is higher<br />
Plant and machinery 7.5%<br />
Motor vehicles 20%<br />
Office equipment, furniture and fittings 20% – 33.3%<br />
Renovations 10%<br />
Billboards 16.7% – 100%<br />
Light box display 10% or over contracted period whichever is higher<br />
Certain assets of the Company have not been revalued since the last valuation. The Directors have applied the transitional<br />
provisions of International Accounting Standards No. 16 (Revised) Property, Plant and Equipment, adopted by <strong>Malaysia</strong>n<br />
Accounting Standards Board which allow these assets to be stated at their last revalued amounts less depreciation.<br />
Stocks<br />
Stocks are stated at the lower of cost and net realisable value, after adequate provision has been made for all obsolete or slow<br />
moving stocks. Cost is determined on a first-in, first-out basis and includes all direct expenditure and production overheads.<br />
Debtors<br />
Known bad debts are written off and specific provision is made for any considered to be doubtful of collection.<br />
Retirement benefits<br />
Provision for retirement benefits is made against the profit and loss account of each year so as to provide for the total accrued<br />
liability at year end and is calculated based on actuarial valuation.<br />
Deferred taxation<br />
Provision is made, by the liability method, for taxation deferred in respect of all timing differences except where it is thought<br />
reasonably probable that the tax effects of such deferrals will continue in the foreseeable future.<br />
Capitalisation of borrowing costs<br />
Interest costs incidental to the construction of fixed assets are capitalised as part of the cost of the assets during the construction<br />
period. Capitalisation of interest costs will cease when assets are ready for their intended use.<br />
Cash and cash equivalents<br />
Cash comprise cash on hand, bank balances and demand deposits. Cash equivalents are short term, highly liquid investment<br />
that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
41
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
3. PRINCIPAL ACTIVITIES AND TURNOVER<br />
The principal activities of the Company during the financial year are to carry out the business of publication, printing and<br />
distribution of newspapers, magazines and books. The principal activities of the subsidiary companies during the financial year<br />
are set out in note 15 to the accounts. There have been no significant changes in the nature of these activities during the<br />
financial year.<br />
Turnover of the Group and of the Company represents advertising income, commission income and sales at invoiced value after<br />
discounts, sales tax and returns and is made up of the following:-<br />
42 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Publishing and distribution 149,971,530 144,147,529 134,585,143 129,839,770<br />
Printing 8,596,173 7,384,115 — —<br />
Advertisements 125,470,215 104,674,856 71,077,625 58,664,702<br />
Investment holding and management services 1,396,787 1,039,580 — —<br />
Information technology and multimedia 11,866,711 5,081,226 — —<br />
4. OPERATING PROFIT/(LOSS) BEFORE TAXATION<br />
297,301,416 262,327,306 205,662,768 188,504,472<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Operating profit/(loss) before taxation<br />
is stated after charging:-<br />
Directors’ remuneration:<br />
Fees<br />
– Directors of the Company 444,205 150,000 444,205 150,000<br />
– Directors of subsidiary companies 143,643 90,000 — —<br />
Other emoluments<br />
– Directors of the Company 898,892 846,451 1,015,344 846,451<br />
– Directors of subsidiary companies 241,325 261,900 — —<br />
Depreciation of fixed assets 24,699,095 22,465,100 12,986,358 11,840,329<br />
Rental of premises 1,966,701 1,886,252 1,074,474 1,861,061
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
4. OPERATING PROFIT/(LOSS) BEFORE TAXATION (CONT’D.)<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Operating profit/(loss) before taxation<br />
is stated after charging:-<br />
Interest expense<br />
– Revolving underwriting facility 7,308,054 5,417,700 7,308,054 5,417,700<br />
– Term loans 424,661 1,118,022 101,151 180,634<br />
– Hire purchase 653,429 687,756 157,840 154,347<br />
– Overdraft 1,257,595 1,148,327 362,972 456,641<br />
– Others 1,757,595 4,272,321 1,388,225 3,621,612<br />
Auditors’ remuneration 181,620 163,375 50,000 50,000<br />
Retirement benefits 3,568,152 3,642,871 2,554,803 3,099,005<br />
Provision for doubtful debts 2,659,557 9,507,780 1,526,333 4,983,823<br />
Provision for diminution in value of investments 45,660 — 45,660 —<br />
Provision for diminution in value of investment<br />
in subsidiary companies — — 260,000 —<br />
Provision for amount owing by subsidiary companies — — 2,886,969 728,501<br />
Goodwill on consolidation written off 623,433 — — —<br />
Loss on sale of fixed assets 29,374 66,938 — —<br />
and crediting:-<br />
Dividends received (gross) from quoted investments 6,670 5,173 1,770 2,041<br />
Dividends received (gross) from associated companies — — 1,327,200 370,800<br />
Dividends received (gross) from<br />
subsidiary companies (unquoted) — — — 159,600<br />
Gain on disposal of fixed assets 426,921 31,000 360,921 31,000<br />
Interest income from fixed deposits 447,959 1,425,945 13,931 121,300<br />
Interest income from subsidiary companies — — 1,854,131 1,543,733<br />
Rental of premises 1,397,856 1,043,738 993,458 753,088<br />
Directors’ money value of benefits-in-kind 237,374 204,000 228,374 96,000<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
43
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
5. TAXATION<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Taxation based on the result for the year:-<br />
<strong>Malaysia</strong>n income tax — 1,744,526 372,112 375,000<br />
Transfer from deferred taxation (101,000) (25,000) — —<br />
(101,000) 1,719,526 372,112 375,000<br />
Under/(over) provision in prior years:-<br />
Income tax (83,553) (140,220) — —<br />
Deferred taxation — 83,000 — —<br />
(83,553) (57,220) — —<br />
(184,553) 1,662,306 372,112 375,000<br />
Share of associated companies’ taxation (131,173) 659,440 — —<br />
(315,726) 2,321,746 372,112 375,000<br />
(a) The taxation charge for the Company for the financial year is in respect of dividend income.<br />
(b) No provision has been made for <strong>Malaysia</strong>n income tax in respect of business income earned by the Company for the<br />
financial year ended 31 December 1999 pursuant to Section 8 of the Income Tax (Amendment) Act 1999.<br />
(c) The Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967 to frank the payment of dividends<br />
out of all its distributable reserves as at 31 December 1999.<br />
(d) Pursuant to the requirements to subsection 365(1A) of the Companies Act, 1965, the future distribution of dividends<br />
out of the Company’s unappropriated profit may only be declared for a financial year up to an amount not exceeding<br />
the after-tax profit of that financial year or not exceeding the average dividends declared in respect of the two financial<br />
year immediately preceding that financial year, whichever is greater.<br />
44 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
6. DIVIDENDS<br />
1999 1998<br />
RM RM<br />
Proposed final dividend of 8% (1998: Nil) less tax at 28% 4,456,675 —<br />
7. EARNINGS/(LOSS) PER SHARE<br />
The earnings/(loss) per share have been calculated based on the Group’s profit after taxation and minority interests of<br />
RM13,050,706 (1998: loss of RM20,986,710) and on the number of ordinary shares in issue during the year of 77,372,837<br />
(1998: 77,372,837).<br />
8. SHARE CAPITAL<br />
Ordinary shares of RM1.00 each:-<br />
The Group and The Company<br />
1999 1998<br />
RM RM<br />
Authorised 150,000,000 150,000,000<br />
Issued and fully paid 77,372,837 77,372,837<br />
9. RESERVES<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Non-distributable reserves:-<br />
Share premium 13,422,612 13,422,612 13,422,612 13,422,612<br />
Revaluation reserve 5,380,919 5,380,919 5,147,995 5,147,995<br />
Exchange fluctuation reserve (43,357) (54,570) — —<br />
Other reserves 1,664,800 1,304,800 — —<br />
20,424,974 20,053,761 18,570,607 18,570,607<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
45
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
9. RESERVES (CONT’D.)<br />
46 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Distributable reserves:-<br />
Revaluation surplus in respect of fixed assets<br />
which have been disposed off 627,475 627,475 — —<br />
Unappropriated profit 55,418,550 47,184,519 47,817,210 40,552,690<br />
Total distributable reserves 56,046,025 47,811,994 47,817,210 40,552,690<br />
76,470,999 67,865,755 66,387,817 59,123,297<br />
Other reserves comprise:-<br />
(i) Capitalisation of revenue reserve<br />
in associated companies<br />
At 1 January 560,000 360,000 — —<br />
Transfer from profit and loss account 360,000 200,000 — —<br />
At 31 December 920,000 560,000 — —<br />
(ii) Capitalisation of revenue reserve arising<br />
from bonus issue by a subsidiary company 744,800 744,800 — —<br />
1,664,800 1,304,800 — —<br />
10. REVOLVING UNDERWRITING FACILITY (RUF)<br />
The Revolving underwriting facility (RUF) up to a limit of RM110,000,000 is obtained from a consortium of bankers and is<br />
available for a period of 5 years expiring in April 2003. The RUF is secured by way of fixed charges on certain land and<br />
building and plant and machinery of the Company and carries interest at rates which ranged from 4.00% to 12.5%<br />
(1998: 7.75% to 12.5%) per annum.<br />
11. TERM LOANS<br />
The Group The Company<br />
Note 1999 1998 1999 1998<br />
RM RM RM RM<br />
Term loans 24,754,361 29,633,431 14,580,810 19,429,418<br />
Less:<br />
Repayable within 12 months 22 (9,933,453) (9,119,296) (4,848,608) (4,848,608)<br />
Repayable after 12 months 14,820,908 20,514,135 9,732,202 14,580,810
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
11. TERM LOANS (CONT’D.)<br />
The Group The Company<br />
Note 1999 1998 1999 1998<br />
RM RM RM RM<br />
Repayments due in:-<br />
1999 — 9,119,296 — 4,848,608<br />
2000 9,933,453 7,312,403 4,848,608 4,848,608<br />
2001 6,253,460 5,820,667 4,848,608 4,848,608<br />
2002 6,253,460 5,799,645 4,848,608 4,848,608<br />
2003 1,366,633 1,581,420 34,986 34,986<br />
2004 onwards 947,355 — — —<br />
24,754,361 29,633,431 14,580,810 19,429,418<br />
The term loans are secured by fixed charges on the assets of the Group and carried interest at rates which ranged from<br />
7.00% to 10.55% (1998: 7.0% to 13.50%) per annum for the financial year.<br />
12. DEFERRED TAXATION<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
At 1 January 5,241,000 5,183,000 3,986,000 3,986,000<br />
Arising from acquisition from a subsidiary company 1,000 — — —<br />
Transfer (to)/from profit and loss account (101,000) 58,000 — —<br />
At 31 December 5,141,000 5,241,000 3,986,000 3,986,000<br />
The tax effect of RM257,400 (1998: RM257,400) in respect of the surplus arising from revaluation of property of the Group<br />
has not been provided for as there is no foreseeable intention to dispose of these properties.<br />
13. LEASE AND HIRE PURCHASE CREDITORS<br />
Amounts owing to lease and hire purchase creditors are made up as follows:-<br />
The Group The Company<br />
1999 1998 1999 1998<br />
Note RM RM RM RM<br />
Lease and hire purchase creditors 6,747,811 8,440,609 1,077,956 903,390<br />
Less: Repayable within 12 months 21 (2,566,730) (2,715,583) (533,413) (469,082)<br />
Repayable after 12 months 4,181,081 5,725,026 544,543 434,308<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
47
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
14. FIXED ASSETS<br />
Long term Short term Plant &<br />
Freehold land leasehold land leasehold land machinery and<br />
THE GROUP & buildings & buildings & buildings motor vehicles<br />
RM RM RM RM<br />
Cost/valuation<br />
At 1 January 1999<br />
At cost 9,777,026 93,118,559 11,262,244 138,213,461<br />
At valuation 440,000 7,925,000 5,802,700 9,279,850<br />
10,217,026 101,043,559 17,064,944 147,493,311<br />
Acquisition of subsidiary — — — —<br />
Additions 53,820 1,340,067 38,498 6,214,671<br />
Disposals/write off — (101,500) — (1,365,068)<br />
At cost 9,830,846 94,357,126 11,300,742 143,063,064<br />
At valuation 440,000 7,925,000 5,802,700 9,279,850<br />
At 31 December 1999 10,270,846 102,282,126 17,103,442 152,342,914<br />
Accumulated depreciation<br />
At 1 January 1999 801,118 5,342,840 5,337,070 53,457,463<br />
Acquisition of subsidiary — — — —<br />
Charge for the year 96,303 1,890,200 552,557 10,910,776<br />
Disposals/write off — (31,973) — (1,256,865)<br />
Adjustments — (208,329) — (109,821)<br />
At 31 December 1999 897,421 6,992,738 5,889,627 63,001,553<br />
Net book value<br />
as at 31 December 1999 9,373,425 95,289,388 11,213,815 89,341,361<br />
48 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
Office Capital<br />
equipment, Lightbox work-infixtures<br />
& fittings Renovations Billboards display progress Total<br />
RM RM RM RM RM RM<br />
38,780,230 2,167,783 9,890,097 41,094,538 48,211,687 392,515,625<br />
— — 30,979 26,395 — 23,504,924<br />
38,780,230 2,167,783 9,921,076 41,120,933 48,211,687 416,020,549<br />
117,770 2,700 — — — 120,470<br />
9,626,782 198,754 1,185,339 2,731,855 12,162,568 33,552,354<br />
(300,007) (382,606) — (400) — (2,149,581)<br />
48,224,775 1,986,631 11,075,436 43,825,993 60,374,255 424,038,868<br />
— — 30,979 26,395 — 23,504,924<br />
48,224,775 1,986,631 11,106,415 43,852,388 60,374,255 447,543,792<br />
27,480,764 659,384 7,997,375 21,872,129 — 122,948,143<br />
37,170 2,700 — — — 39,870<br />
5,216,248 198,272 644,499 5,190,240 — 24,699,095<br />
(115,789) (2,700) — (64) — (1,407,391)<br />
(783,200) — — — — (1,101,350)<br />
31,835,193 857,656 8,641,874 27,062,305 — 145,178,367<br />
16,389,582 1,128,975 2,464,541 16,790,083 60,374,255 302,365,425<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
49
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
14. FIXED ASSETS (CONT’D.)<br />
Long term Short term Plant &<br />
Freehold land leasehold land leasehold land machinery and<br />
THE GROUP & buildings & buildings & buildings motor vehicles<br />
RM RM RM RM<br />
Cost/valuation<br />
At 1 January 1998<br />
At cost 9,777,026 25,148,727 11,262,244 69,569,610<br />
At valuation 440,000 7,925,000 5,802,700 9,279,850<br />
50 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
10,217,026 33,073,727 17,064,944 78,849,460<br />
Additions — — — 11,270,198<br />
Disposals — — — (2,703,818)<br />
Reclassification — 67,969,832 — 60,077,471<br />
At cost 9,777,026 93,118,559 11,262,244 138,213,461<br />
At valuation 440,000 7,925,000 5,802,700 9,279,850<br />
At 31 December 1998 10,217,026 101,043,559 17,064,944 147,493,311<br />
Accumulated depreciation<br />
At 1 January 1998 705,354 4,140,833 4,770,886 46,540,128<br />
Charge for the year 95,764 1,202,007 566,184 8,393,062<br />
Disposals — — — (1,475,727)<br />
At 31 December 1998 801,118 5,342,840 5,337,070 53,457,463<br />
Net book value<br />
as at 31 December 1998 9,415,908 95,700,719 11,727,874 94,035,848
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
Office Capital<br />
equipment, Lightbox work-infixtures<br />
& fittings Renovations Billboards display progress Total<br />
RM RM RM RM RM RM<br />
35,146,596 859,632 9,364,877 32,265,108 147,723,036 341,116,856<br />
— — 30,979 26,395 — 23,504,924<br />
35,146,596 859,632 9,395,856 32,291,503 147,723,036 364,621,780<br />
4,133,693 27,646 525,220 8,836,030 30,921,449 55,714,236<br />
(1,409,549) — — (6,600) (195,500) (4,315,467)<br />
909,490 1,280,505 — — (130,237,298) —<br />
38,780,230 2,167,783 9,890,097 41,094,538 48,211,687 392,515,625<br />
— — 30,979 26,395 — 23,504,924<br />
38,780,230 2,167,783 9,921,076 41,120,933 48,211,687 416,020,549<br />
21,626,419 353,565 7,369,037 17,232,021 — 102,738,243<br />
6,633,488 305,819 628,338 4,640,438 — 22,465,100<br />
(779,143) — — (330) — (2,255,200)<br />
27,480,764 659,384 7,997,375 21,872,129 — 122,948,143<br />
11,299,466 1,508,399 1,923,701 19,248,804 48,211,687 293,072,406<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
51
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
14. FIXED ASSETS (CONT’D.)<br />
Long term Short term<br />
Freehold land leasehold land leasehold land<br />
THE COMPANY & buildings & buildings & buildings<br />
RM RM RM<br />
Cost/valuation<br />
At 1 January 1999<br />
At cost 4,997,286 82,875,307 3,866,775<br />
At valuation 440,000 7,925,000 5,802,700<br />
5,437,286 90,800,307 9,669,475<br />
Additions — 1,324,372 —<br />
Disposals — (101,500) —<br />
At cost 4,997,286 84,098,179 3,866,775<br />
At valuation 440,000 7,925,000 5,802,700<br />
At 31 December 1999 5,437,286 92,023,179 9,669,475<br />
Accumulated depreciation<br />
At 1 January 1999 701,327 4,316,257 2,609,686<br />
Charge for the year 83,908 1,685,026 323,126<br />
Disposals — (31,973) —<br />
At 31 December 1999 785,235 5,969,310 2,932,812<br />
Net book value<br />
as at 31 December 1999 4,652,051 86,053,869 6,736,663<br />
52 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
Plant & Office Capital<br />
machinery and equipment, work-inmotor<br />
vehicles fixtures & fittings Renovations progress Total<br />
RM RM RM RM RM<br />
99,674,480 20,940,423 1,280,505 48,211,687 261,846,463<br />
8,204,000 — — — 22,371,700<br />
107,878,480 20,940,423 1,280,505 48,211,687 284,218,163<br />
5,836,456 8,159,770 — 12,162,568 27,483,166<br />
(473,768) (167,579) — — (742,847)<br />
105,037,168 28,932,614 1,280,505 60,374,255 288,586,782<br />
8,204,000 — — — 22,371,700<br />
113,241,168 28,932,614 1,280,505 60,374,255 310,958,482<br />
34,217,470 14,513,502 117,956 — 56,476,198<br />
7,909,160 2,985,138 — — 12,986,358<br />
(426,487) (64,416) — — (522,876)<br />
41,700,143 17,434,224 117,956 — 68,939,680<br />
71,541,025 11,498,390 1,162,549 60,374,255 242,018,802<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
53
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
14. FIXED ASSETS (CONT’D.)<br />
Long term Short term<br />
Freehold land leasehold land leasehold land<br />
THE COMPANY & buildings & buildings & buildings<br />
RM RM RM<br />
Cost/valuation<br />
At 1 January 1998<br />
At cost 4,997,286 14,905,475 3,866,775<br />
At valuation 440,000 7,925,000 5,802,700<br />
5,437,286 22,830,475 9,669,475<br />
Additions — — —<br />
Disposals — — —<br />
Reclassification — 67,969,832 —<br />
At cost 4,997,286 82,875,307 3,866,775<br />
At valuation 440,000 7,925,000 5,802,700<br />
At 31 December 1998 5,437,286 90,800,307 9,669,475<br />
Accumulated depreciation<br />
At 1 January 1998 617,419 3,319,273 2,404,516<br />
Charge for the year 83,908 996,984 205,170<br />
Disposals — — —<br />
At 31 December 1998 701,327 4,316,257 2,609,686<br />
Net book value<br />
as at 31 December 1998 4,735,959 86,484,050 7,059,789<br />
54 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
Plant & Office Capital<br />
machinery and equipment, work-inmotor<br />
vehicles fixtures & fittings Renovations progress Total<br />
RM RM RM RM RM<br />
36,565,895 17,819,636 — 147,537,536 225,692,603<br />
8,204,000 — — — 22,371,700<br />
44,769,895 17,819,636 — 147,537,536 248,064,303<br />
3,135,170 3,107,834 — 30,911,449 37,154,453<br />
(104,056) (896,537) — — (1,000,593)<br />
60,077,471 909,490 1,280,505 (130,237,298) —<br />
99,674,480 20,940,423 1,280,505 48,211,687 261,846,463<br />
8,204,000 — — — 22,371,700<br />
107,878,480 20,940,423 1,280,505 48,211,687 284,218,163<br />
28,251,354 10,640,822 — — 45,233,384<br />
6,070,072 4,366,239 117,956 — 11,840,329<br />
(103,956) (493,559) — — (597,515)<br />
34,217,470 14,513,502 117,956 — 56,476,198<br />
73,661,010 6,426,921 1,162,549 48,211,687 227,741,965<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
55
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
14. FIXED ASSETS (CONT’D.)<br />
ASSETS ACQUIRED UNDER FINANCE LEASE AND HIRE-PURCHASE AGREEMENTS<br />
The value of fixed assets of the Group and the Company includes the following assets acquired under finance lease and<br />
hire-purchase agreements:-<br />
Accumulated Net book<br />
Cost depreciation value<br />
RM RM RM<br />
The Group<br />
1999<br />
Plant and machinery and motor vehicles 10,573,051 2,887,800 7,685,251<br />
Office equipment, furniture and fittings 3,650,012 3,108,413 541,599<br />
1998<br />
Plant and machinery and motor vehicles 10,590,469 2,272,265 8,318,204<br />
Office equipment, furniture and fittings 4,706,356 2,979,538 1,726,818<br />
The Company<br />
1999<br />
Plant and machinery and motor vehicles 1,599,854 733,966 865,888<br />
Office equipment, furniture and fittings 1,417,718 1,077,573 340,145<br />
1998<br />
Plant and machinery and motor vehicles 1,210,841 470,548 740,293<br />
Office equipment, furniture and fittings 1,004,782 797,324 207,458<br />
(a) The long term leasehold land has unexpired period of more than 50 years.<br />
(b) The land and buildings and plant and machinery stated at valuation were revalued on 22 July 1986 by the Directors<br />
based on professional valuation carried out by an independent firm of valuers on the fair market value basis for land and<br />
buildings and on replacement cost basis for plant and machinery.<br />
(c) Included in capital work-in-progress of the Group and the Company is interest costs capitalised during the year of<br />
RM1,369,223 (1998: RM2,345,819).<br />
(d) Certain fixed assets of the Group and the Company have been pledged for the term loans and revolving underwriting<br />
facility obtained.<br />
56 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
14. FIXED ASSETS (CONT’D.)<br />
ASSETS ACQUIRED UNDER FINANCE LEASE AND HIRE-PURCHASE AGREEMENTS (CONT’D.)<br />
(e) The net book values of revalued fixed assets of the Group and the Company that would have been included in the<br />
accounts had these assets been carried at cost less depreciation are as follows:-<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Freehold land and buildings 242,682 250,772 242,682 250,772<br />
Long term leasehold land and buildings 3,804,514 3,994,739 3,804,514 3,994,739<br />
Short term leasehold land and buildings 3,420,391 3,534,404 3,420,391 3,534,404<br />
15. SUBSIDIARY COMPANIES<br />
The Company<br />
1999 1998<br />
RM RM<br />
Unquoted shares, at cost 29,182,298 28,642,298<br />
Less: Provision for diminution in value (1,772,286) (1,512,286)<br />
27,410,012 27,130,012<br />
Add: Amount owing by subsidiary companies 76,219,728 65,875,766<br />
Less: Amount owing to subsidiary companies (18,169,696) (19,718,992)<br />
85,460,044 73,286,786<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
57
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
15. SUBSIDIARY COMPANIES (CONT’D.)<br />
The subsidiary companies are:-<br />
Equity interest held<br />
Name of company Directly Through<br />
by the subsidiary<br />
company company Principal activities<br />
1999 1998 1999 1998<br />
% % % %<br />
<strong>Utusan</strong> Publications<br />
and Distributors Sdn <strong>Bhd</strong> 100 100 — — Publication and distribution of books<br />
USP Techno Printer Sdn <strong>Bhd</strong><br />
(formerly known as<br />
<strong>Utusan</strong> Security Printers Sdn <strong>Bhd</strong>)<br />
100 100 — — Printing of security documents<br />
Juasa Holdings Sdn <strong>Bhd</strong> 100 100 — — Investment holding<br />
<strong>Utusan</strong> Printcorp Sdn <strong>Bhd</strong><br />
<strong>Utusan</strong> <strong>Melayu</strong> (Singapura)<br />
Private Limited*<br />
90 90 10 10 Commercial printing<br />
(Incorporated in Singapore) 100 100 — — Print advertising<br />
<strong>Utusan</strong> Teknologi Maklumat Sdn <strong>Bhd</strong> 70 70 — — Dormant<br />
UPD Sdn <strong>Bhd</strong> 81 81 19 19 Outdoor advertising<br />
Digital Conference Sdn <strong>Bhd</strong> 100 100 — — Management of special events<br />
<strong>Utusan</strong> Multimedia Sdn <strong>Bhd</strong> 100 100 — — Information technology and multimedia<br />
<strong>Utusan</strong> Digital Sdn <strong>Bhd</strong> 100 100 — — Publication and distribution<br />
of newspapers, magazines and books<br />
Forum Exposition Sdn <strong>Bhd</strong> 70 — — — Exhibition and exposition organiser<br />
Net Space Learning Sdn <strong>Bhd</strong> 100 100 — — Information technology and multimedia<br />
<strong>Utusan</strong> City Berhad 100 100 — — Dormant<br />
Advance Web Print Sdn <strong>Bhd</strong><br />
(formerly known as<br />
Wawasan Bumicetak Sdn <strong>Bhd</strong>)<br />
100 100 — — Dormant<br />
Utustar (<strong>Malaysia</strong>) Sdn <strong>Bhd</strong> 100 100 — — Dormant<br />
Net Space Production Sdn <strong>Bhd</strong> 100 100 — — Information technology<br />
(formerly known as<br />
Recruit Publishing Sdn <strong>Bhd</strong>)<br />
and multimedia activities<br />
UPD Productions Sdn <strong>Bhd</strong> — — 100 100 Advertising poster productions<br />
<strong>Utusan</strong> Binders Sdn <strong>Bhd</strong> — — 100 100 Binding of books and publications<br />
<strong>Utusan</strong> Media Sales Sdn <strong>Bhd</strong> — — 100 100 Print advertising<br />
KL Recorder Sdn <strong>Bhd</strong> — — 100 100 Dormant<br />
<strong>Utusan</strong> Audio Sdn <strong>Bhd</strong> — — 100 100 Audio recording and production<br />
<strong>Utusan</strong> Sight & Sound Sdn <strong>Bhd</strong> — — 100 100 Video production editing<br />
Advance Screen Sdn <strong>Bhd</strong> — — 51 51 Printing of silkscreen posters<br />
<strong>Utusan</strong> Colourscan Sdn <strong>Bhd</strong> — — 100 100 Dormant<br />
Juasa Properties Sdn <strong>Bhd</strong> — — 100 100 Dormant<br />
*Not Audited by PRICEWATERHOUSECOOPERS.<br />
58 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
15. SUBSIDIARY COMPANIES (CONT’D.)<br />
All the subsidiary companies, unless otherwise stated, are incorporated in <strong>Malaysia</strong>.<br />
As at 31 December 1999, the Company has interests in certain subsidiary companies comprising total investment and advances<br />
amounting to RM28,826,482. These subsidiaries have incurred substantial losses and are in capital deficit positions as at the<br />
end of the financial year. It is the intention of the Company to restructure and rationalise the activities of these subsidiaries to<br />
ensure that they are able to operate as going concern. In view of this, the Directors are of the opinion that the diminution in<br />
value of the interest in these subsidiary companies is not permanent.<br />
16. ASSOCIATED COMPANIES<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Unquoted shares, at cost 2,144,799 2,394,799 1,699,999 1,949,999<br />
Group’s share of post-acquisition capital reserve 920,000 560,000 — —<br />
Group’s share of post-acquisition profits less losses 3,966,538 4,169,440 — —<br />
7,031,337 7,124,239 1,699,999 1,949,999<br />
Less:<br />
Provision for diminution in value (444,800) — (319,999) (569,998)<br />
6,586,537 7,124,239 1,380,000 1,380,001<br />
Add:<br />
Amount owing by associated companies<br />
Less:<br />
244,598 570,999 244,598 244,598<br />
Amount owing to associated companies (506,762) (498,838) (506,762) (498,838)<br />
6,324,373 7,196,400 1,117,836 1,125,761<br />
The associated companies are:-<br />
Equity interest held<br />
Name of company Directly Through<br />
by the subsidiary Financial<br />
company company year end Principal activities<br />
1999 1998 1999 1998<br />
% % % %<br />
Swan <strong>Malaysia</strong> Sdn <strong>Bhd</strong> 40 40 — — 30 June Manufacturing of stationery<br />
<strong>Utusan</strong> Transport Sdn <strong>Bhd</strong> 30 30 — — 31 December Transportation<br />
World Infonexus Sdn <strong>Bhd</strong> — 40 — — 31 December News production<br />
<strong>Utusan</strong> PNMB On/line Sdn <strong>Bhd</strong> — 50 — — 31 December Information technology<br />
Commercial Airtime Marketing Sdn <strong>Bhd</strong> 40 40 — — 31 March Marketing of television<br />
advertising airtime<br />
TEAM UPD Ltd (Incorporated in India) — — 50 50 31 March Hiring of advertising sites<br />
All the associated companies, unless otherwise stated, are incorporated in <strong>Malaysia</strong>.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
59
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
17. INVESTMENTS<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Quoted:<br />
Shares in corporations, at cost 659,425 209,425 92,500 92,500<br />
Unquoted:<br />
Shares in corporations, at cost 3,197,936 3,197,936 224,299 224,299<br />
Less: Provision for diminution in value (352,860) (307,200) (102,860) (57,200)<br />
2,845,076 2,890,736 121,439 167,099<br />
3,504,501 3,100,161 213,939 259,599<br />
Market value of quoted investments 807,103 163,893 102,050 69,680<br />
18. CURRENT ASSETS<br />
The Group The Company<br />
Note 1999 1998 1999 1998<br />
RM RM RM RM<br />
Stocks 19 21,036,438 36,327,152 15,143,832 29,271,698<br />
Trade debtors 106,297,674 98,050,547 20,064,444 23,111,552<br />
Less: Provision for doubtful debts (25,751,549) (25,542,248) (5,929,672) (4,403,339)<br />
80,546,125 72,508,299 14,134,772 18,708,213<br />
Other debtors and prepayments 29,312,484 24,569,837 17,715,200 13,263,791<br />
Less: Provision for doubtful debts (166,209) (166,209) (166,209) (166,209)<br />
29,146,275 24,403,628 17,548,991 13,097,582<br />
Fixed deposits with financial institutions 20 12,331,994 11,626,914 — —<br />
Cash and bank balances 13,732,258 7,412,883 3,867,663 2,655,066<br />
60 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
156,793,090 152,278,876 50,695,258 63,732,559
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
19. STOCKS<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Stocks comprise:<br />
Raw materials 18,170,068 32,357,990 15,754,003 29,870,869<br />
Work-in-progress 393,801 704,079 — —<br />
Finished goods 4,029,660 4,774,334 — —<br />
22,593,529 37,836,403 15,754,003 29,870,869<br />
Less: Provision for slow moving stocks (1,557,091) (1,509,251) (610,171) (599,171)<br />
20. FIXED DEPOSITS WITH FINANCIAL INSTITUTIONS<br />
21,036,438 36,327,152 15,143,832 29,271,698<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Licenced banks 507,729 392,930 — —<br />
Licenced finance companies 1,813,904 457,282 — —<br />
Discount houses 10,010,361 10,776,702 — —<br />
12,331,994 11,626,914 — —<br />
Fixed deposits amounting to RM215,000 (1998: RM215,000) are pledged to licensed banks for banking facilities granted to<br />
the Group.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
61
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
21. CURRENT LIABILITIES<br />
62 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
The Group The Company<br />
Note 1999 1998 1999 1998<br />
RM RM RM RM<br />
Trade creditors 28,675,613 26,960,379 4,116,854 3,567,005<br />
Other creditors and accrued liabilities 54,779,321 39,360,091 39,345,862 25,491,990<br />
Amount owing to a director 136,568 — — —<br />
Lease and hire purchase creditors 13 2,566,730 2,715,583 533,413 469,082<br />
Short term borrowings 22 48,276,108 59,777,605 42,123,608 54,631,608<br />
Billings in advance 9,692,360 8,649,140 — —<br />
Bank overdrafts 23 17,613,814 13,901,170 10,725,878 4,436,485<br />
Taxation 839,768 6,060,714 686,047 4,080,947<br />
Proposed dividend 4,456,675 — 4,456,675 —<br />
22. SHORT TERM BORROWINGS<br />
Short term borrowings comprise the following:-<br />
167,036,957 157,424,682 101,988,337 92,677,117<br />
The Group The Company<br />
Note 1999 1998 1999 1998<br />
RM RM RM RM<br />
Bankers acceptance 17,075,000 30,883,000 17,075,000 30,883,000<br />
Revolving credits 20,200,000 18,900,000 20,200,000 18,900,000<br />
Current portion of term loans 11 9,933,453 9,119,296 4,848,608 4,848,608<br />
Trust receipts 1,067,655 875,309 — —<br />
48,276,108 59,777,605 42,123,608 54,631,608<br />
(a) Bankers’ acceptance are unsecured and the interest rates for the financial year ranged from 3.2% to 10.25% (1998: 6.3%<br />
to 14.4%) per annum.<br />
(b) Revolving credits are unsecured and the interest rates for the financial year ranged from 5% to 14.85% (1998: 9.25% to<br />
18.25%) per annum.<br />
(c) Trust receipts for one of the subsidiary companies are guaranteed by two of the Directors of that subsidiary company.<br />
Interest rates for the trust receipts for the financial year ranged from 7% to 10.35% (1998: 10.55% to 11%) per annum.
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
23. OVERDRAFTS<br />
The bank overdrafts are unsecured and interest rates for the financial year ranged from 7.8% to 10.25% (1998: 8.8% to 14.05%)<br />
per annum.<br />
24. ACQUISITION OF A SUBSIDIARY COMPANY<br />
During the financial year the Group acquired a subsidiary company, Forum Exposition Sdn <strong>Bhd</strong>. The fair value of the assets<br />
and liabilities assumed are as follows:-<br />
Net assets acquired:<br />
Fixed assets 80,600<br />
Investment 1,600<br />
Work-in-progress 123,375<br />
Debtors 342,180<br />
Cash and bank balances 150,155<br />
Creditors (781,343)<br />
(83,433)<br />
Goodwill 623,433<br />
Total acquisition cost 540,000<br />
Less: cash and bank balances (150,155)<br />
Cash flow on acquisition, net of cash acquired 389,845<br />
25. SIGNIFICANT INTER-COMPANY TRANSACTIONS<br />
The following transactions were carried out with subsidiary companies based on negotiated term and conditions:-<br />
RM<br />
The Company<br />
1999 1998<br />
RM RM<br />
Purchases from subsidiary companies 10,454,995 9,140,438<br />
Commission received from subsidiary companies 879,592 1,038,064<br />
Interest income from subsidiary companies 1,854,131 1,543,733<br />
Rental income from subsidiary companies 489,942 347,538<br />
Rental charged by subsidiary companies 431,943 328,376<br />
Advertising commission paid to subsidiary companies 5,657,356 7,442,018<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
63
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
26. CONTINGENT LIABILITIES<br />
The Company has given corporate guarantees to financial institutions amounting to RM50,914,000 (1998: RM88,245,000)<br />
for banking facilities extended to subsidiary companies.<br />
Several libel suits have been filed against the Company of which the outcome and compensation, if any, are not determinable<br />
at this juncture. The Directors are of the opinion that the claims are not merited and will not materialise.<br />
27. CAPITAL COMMITMENTS<br />
The Group The Company<br />
1999 1998 1999 1998<br />
RM RM RM RM<br />
Approved and contracted for 105,325,772 224,539,800 101,858,098 195,632,080<br />
Approved but not contracted for 37,753,306 106,229,554 37,753,306 64,018,004<br />
28. SEGMENTAL ANALYSIS BY ACTIVITIES<br />
Profit/(loss)<br />
before Assets<br />
Turnover taxation employed<br />
RM RM RM<br />
1999<br />
Publishing and distribution 149,971,530 7,383,253 243,484,788<br />
Printing 20,181,002 (2,318,596) 32,487,883<br />
Advertisements 127,011,750 8,792,559 217,712,133<br />
Investment holding and management services 1,396,787 1,399,139 106,527,991<br />
Information technology and multimedia 12,209,788 (2,375,504) 7,538,078<br />
310,770,857 12,880,851 607,750,873<br />
Consolidation adjustments (13,469,441) (627,464) (138,763,485)<br />
297,301,416 12,253,387 468,987,388<br />
Share of results of associated companies 731,509<br />
64 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
12,984,896
Notes T O T HE A CCOUNTS for the year ended 31 December 1999<br />
28. SEGMENTAL ANALYSIS BY ACTIVITIES (CONT’D.)<br />
Profit/(loss)<br />
before Assets<br />
Turnover taxation employed<br />
RM RM RM<br />
1998<br />
Publishing and distribution 144,724,984 (7,496,786) 228,025,562<br />
Printing 17,036,710 (5,027,211) 33,265,837<br />
Advertisements 106,330,655 (6,658,868) 187,585,748<br />
Investment holding and management services 1,039,580 2,033,796 112,046,481<br />
Information technology and multimedia 5,081,226 (2,423,018) 4,408,108<br />
274,213,155 (19,572,087) 565,331,736<br />
Consolidation adjustments (11,885,849) (1,162,139) (109,683,893)<br />
262,327,306 (20,734,226) 455,647,843<br />
Share of results of associated companies 2,186,340<br />
(18,547,886)<br />
The Group currently operates mainly in <strong>Malaysia</strong> and accordingly no information on the Group’s operations by geographical<br />
segments has been provided.<br />
29. EVENTS AFTER BALANCE SHEET DATE<br />
Subsequent to the balance sheet date, the Company and one of the its subsidiaries entered into the following agreements:<br />
20 January 2000 – A support agreement with Fratelli Spada S.p.A, an Italian printing company, to increase its market base<br />
and undertake printing and related jobs in the international market.<br />
28 January 2000 – A share purchase and subscription agreement for the sale of 25% stake in <strong>Utusan</strong> Multimedia Sdn <strong>Bhd</strong><br />
to Asia Online Services (M) Sdn <strong>Bhd</strong> for RM5.0 million.<br />
3 February 2000 – A strategic alliance agreement with British Council to market a course designed for secretaries of the<br />
new millennium.<br />
3 February 2000 – A Memorandum of Understanding between, Net Space Learning Sdn <strong>Bhd</strong>, Net Space Production Sdn<br />
<strong>Bhd</strong> and Sky Media Pte Ltd to localise an interactive education service under the name of<br />
“SKYTUTOR”. The Agreement was eventually signed on 15 March 2000.<br />
11 February 2000 – A sale and purchase agreement with Felcra Berhad for the sale of Wangsa Maju Complex for RM59.0<br />
million to Felcra <strong>Bhd</strong>.<br />
21 March 2000 – Management Buy Out of 70% of <strong>Utusan</strong> Sight and Sound Sdn <strong>Bhd</strong> and <strong>Utusan</strong> Audio Sdn <strong>Bhd</strong> to<br />
streamline and enhance the performance of the Group.<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
65
Statement B Y T HE D IRECTORS pursuant to Section 169(15) of the Companies Act, 1965<br />
We, TAN SRI KAMARUL ARIFFIN MOHAMED YASSIN and AZIZI MEOR NGAH, being two of the Directors of<br />
UTUSAN MELAYU (MALAYSIA) BERHAD, state that, in the opinion of the Directors, the accounts set out on pages 35 to 65 are<br />
drawn up 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<br />
of the results of the Group and of the Company and the cash flows of the Group for the financial year ended on that date in<br />
accordance with the applicable approved accounting standards in <strong>Malaysia</strong>.<br />
Signed at Kuala Lumpur on 23 March 2000<br />
On behalf of the Board of Directors<br />
TAN SRI KAMARUL ARIFFIN MOHAMED YASSIN<br />
Director<br />
AZIZI MEOR NGAH<br />
Director<br />
Statutory D ECLARATION<br />
I, KHAMARUL BAHARAIN SULAIMAN, being the officer primarily responsible for the financial management of<br />
UTUSAN MELAYU (MALAYSIA) BERHAD, do solemnly and sincerely declare that, to the best of my knowledge and belief, the<br />
accounts set out on pages 35 to 65 are correct, and I make this solemn declaration conscientiously believing the same to be true and<br />
by virtue of the provisions of the Statutory Declarations Act, 1960.<br />
KHAMARUL BAHARAIN SULAIMAN<br />
Subscribed and solemnly declared at Kuala Lumpur on 23 March 2000<br />
Before me,<br />
Commissioner for Oaths<br />
66 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
List O F P ROPERTIES as at 31 December 1999<br />
Land Built-up Net Book<br />
Area Area Value<br />
Location Description Existing Use (sq. ft.) (sq. ft.) Tenure (RM)<br />
32, Argyll Road Double Storey Vacant 1,280 1,995 Leasehold 178,000.00<br />
Georgetown Pre-war (26.9.2049)<br />
Penang Shophouse<br />
(D/P: 28.8.1969)<br />
34, Argyll Road Double Storey <strong>Utusan</strong>’s Office 1,280 1,995 Leasehold 225,538.10<br />
Georgetown Pre-war (27.9.2049)<br />
Penang Shophouse<br />
(D/P: 1.7.1976)<br />
Lot 314, <strong>Utusan</strong>’s Printing Plant 69,054 40,805 Leasehold 3,123,921.57<br />
Tingkat Perusahaan Tiga Factory Building (1.4.2041)<br />
Prai Industrial Estate<br />
Penang<br />
(D/P: 2.4.1982)<br />
Plot 6, Industrial Estate Industrial Vacant 174,240 — Leasehold 368,964.71<br />
Bagan Serai Land (12.12.2035)<br />
Seberang Prai Tengah<br />
Penang<br />
(D/P: 10.10.1977)<br />
1, Jalan S.M. Double Storey <strong>Utusan</strong>’s Office 2,288 3,980 Leasehold 102,300.00<br />
IC/12 Bandar Baru Shophouse (1.8.2079)<br />
Sri Manjung<br />
Sitiawan, Perak<br />
(D/P: 12.12.1980)<br />
3270, Jalan Sungai Nibong Double Storey Vacant 1,760 2,932 Freehold 113,769.20<br />
Teluk Intan, Perak Shophouse<br />
(D/P: 19.9.1984)<br />
208, Jalan Sultan Iskandar Double Storey <strong>Utusan</strong>’s Office 1,740 2,720 Freehold 214,031.30<br />
Ipoh, Perak Pre-war<br />
(D/P: 8.9.1990) Shophouse<br />
76-C, Wisma Ali Long 4 1 ⁄2 Storey <strong>Utusan</strong>’s Office — 1,832 Freehold 106,777.44<br />
Jalan Air Jerneh Shophouse<br />
Kuala Terengganu, Terengganu<br />
(D/P: 25.9.1991)<br />
Gong Badak Industrial Estate Factory Building Printing Plant 130,684 22,000 Leasehold 1,589,214.04<br />
Kuala Terengganu, Terengganu (27.3.2051)<br />
(D/P: 28.3.1991)<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
67
List O F P ROPERTIES as at 31 December 1999<br />
Land Built-up Net Book<br />
Area Area Value<br />
Location Description Existing Use (sq. ft.) (sq. ft.) Tenure (RM)<br />
C-321, Jalan Tengku Ismail Double Storey Ground Floor 1,600 2,480 Leasehold 182,000.00<br />
Temerloh, Pahang Shophouse <strong>Utusan</strong>’s Office (29.3.2083)<br />
(D/P: 26.11.1984)<br />
18, Jalan Bukit Ubi Three Storey Ground Floor 2,000 4,900 Leasehold 252,417.60<br />
Kuantan, Pahang Shophouse <strong>Utusan</strong>’s Office (14.8.2068)<br />
(D/P: 28.7.1986)<br />
Jalan Haji Abd Aziz Vacant Land Vacant 3,267 — Leasehold 126,060.61<br />
Kuantan, Pahang (17.9.2077)<br />
(D/P: 15.7.1981)<br />
5, Jalan Ragum Warehouse <strong>Utusan</strong>’s 85,412 15,000 Leasehold 3,282,383.23<br />
15/17, Shah Alam Warehouse (12.1.2086)<br />
Selangor<br />
(D/P: 11.11.1987)<br />
Lot 59 & 60 Industrial Vacant 174,000 — Freehold 3,609,888.60<br />
Bukit Beruntung Land Land<br />
Industrial Park<br />
Rawang, Selangor<br />
(D/P: 23.8.1996)<br />
Lot 6, Industrial Estate Industrial Bangi Printing 683,260 — Leasehold 68,351,318.11<br />
Section 10 Land Complex (99 years)<br />
Bandar Baru Bangi<br />
Mukim Kajang<br />
District of Hulu Langat<br />
Selangor<br />
(D/P: 20.12.1995)<br />
Section 10, Wangsa Maju Industrial Head Office 625,397 — Lot 23434 8,464,026.35<br />
Kuala Lumpur Land and Factory Leasehold<br />
(D/P: 13.7.1992) (24.2.2083)<br />
68 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
Lot P.T. 4780<br />
Leasehold<br />
(7.8.2090)<br />
Lot 351, Jalan Tiga Factory and <strong>Utusan</strong> Binders 47,244 28,601 Leasehold 630,579.97<br />
Off Jalan Chan Sow Lin Office Sdn <strong>Bhd</strong> (17.12.2009)<br />
Kuala Lumpur Building Printing Plant<br />
(D/P: 20.12.1979)
List O F P ROPERTIES as at 31 December 1999<br />
Land Built-up Net Book<br />
Area Area Value<br />
Location Description Existing Use (sq. ft.) (sq. ft.) Tenure (RM)<br />
46-M, Jalan Lima Factory Company’s HQ 63,855 49,368 Lot 187 2,432,896.98<br />
Off Jalan Chan Sow Lin Building and Printing Leasehold<br />
Kuala Lumpur and Plant (2.6.2057)<br />
(D/P: 10.12.1959) Company’s HQ Lot 268<br />
Leasehold<br />
(30.1.2062)<br />
Jalan Enam Factory Store 60,205 10,000 Lot 234 & 236 951,613.72<br />
Off Jalan Chan Sow Lin Building Leasehold<br />
Kuala Lumpur (23.5.2021)<br />
(D/P: 7.2.1991) Lot 238 & 240<br />
Leasehold<br />
(1.7.2016)<br />
Lot 242 & 244<br />
Leasehold<br />
(1.6.2012)<br />
36, Jalan Jelutong Double Storey Company 12,754 5,790 Freehold 392,378.39<br />
Damansara Heights Bungalow Director’s<br />
Kuala Lumpur Residence<br />
(D/P: 3.9.1987)<br />
Lot 272, Section 92 — Vacant 40,520 — — 480,857.15<br />
Kuala Lumpur Land<br />
(D/P: 20.4.1963)<br />
358, Taman Melaka Raya Three Storey <strong>Utusan</strong>’s Office 1,400 4,160 Leasehold 204,000.00<br />
Melaka Shophouse (4.10.2082)<br />
(D/P: 26.2.1982)<br />
24, Jalan Serampang Three Storey <strong>Utusan</strong>’s Office 1,920 5,358 Freehold 323,376.36<br />
Taman Pelangi Shophouse<br />
Johor Bahru, Johor<br />
(D/P: 27.10.1980)<br />
19, Jalan Mengkudu Double Storey <strong>Utusan</strong>’s Office 1,680 3,192 Freehold 214,661.46<br />
Taman Makmur Shophouse<br />
Batu Pahat, Johor<br />
(D/P: 2.10.1984)<br />
17, Jalan Kukoh Factory Factory Rented Out 115,434 39,200 Leasehold 1,599,487.60<br />
Johor Bahru, Johor to Swan <strong>Malaysia</strong> (6.10.2034)<br />
(D/P: 7.10.1974) Sdn <strong>Bhd</strong><br />
Jalan Firma 2/1 Industrial Printing 170,311 21,410 Freehold 3,212,181.06<br />
Tebrau Industrial Estate Building Plant<br />
Johor Bahru, Johor<br />
(D/P: 3.4.1991)<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
69
List O F P ROPERTIES as at 31 December 1999<br />
Land Built-up Net Book<br />
Area Area Value<br />
Location Description Existing Use (sq. ft.) (sq. ft.) Tenure (RM)<br />
17, Hamilton Court — Directors’ and — 800 Freehold 654,137.92<br />
149 Maida Vale Executives’ Holiday<br />
London W9, U.K. Accommodation<br />
(D/P: 23.5.1994)<br />
Lot 438, Jalan Dua Factory <strong>Utusan</strong> Security 38,761 23,361 Leasehold 3,211,393.67<br />
Off Jalan Chan Sow Lin Building Printers Sdn <strong>Bhd</strong>’s (14.10.2016)<br />
Kuala Lumpur Office/Printing<br />
(D/P: 6.1.1992) Plant<br />
Lot 184, Jalan Lima Factory <strong>Utusan</strong> Printcorp 51,972 41,670 Leasehold 72,835.08<br />
Off Jalan Chan Sow Lin Building Sdn <strong>Bhd</strong>’s (27.9.2005)<br />
Kuala Lumpur Office/Printing Plant<br />
(D/P: 30.11.1977)<br />
11, Jalan 14/22 Five Storey <strong>Utusan</strong> Media 5,533 24,170 Leasehold 3,774,729.10<br />
Petaling Jaya, Selangor Shophouse Sales Sdn <strong>Bhd</strong>’s (16.12.2086)<br />
(D/P: 10.3.1992) with Lifts Office<br />
11A, Jalan 14/22 Four Storey <strong>Utusan</strong> Media 1,539 5,830 Leasehold 652,312.99<br />
Petaling Jaya, Selangor Shophouse Sales Sdn <strong>Bhd</strong>’s (16.12.2086)<br />
(D/P: 23.10.1989) Office<br />
12, Jalan SS22/25 Four Storey UPD Sdn <strong>Bhd</strong>’s 1,650 5,142 Freehold 531,676.86<br />
Damansara Jaya Shophouse Office<br />
Petaling Jaya, Selangor<br />
(D/P: 28.9.1990)<br />
14, Jalan SS22/25 Four Storey UPD Sdn <strong>Bhd</strong>’s 1,650 5,142 Freehold 531,676.86<br />
Damansara Jaya Shophouse Office<br />
Petaling Jaya, Selangor<br />
(D/P: 28.9.1990)<br />
1&3, Jalan 3/91A 3 1 ⁄2 Storey <strong>Utusan</strong> Publication 13,551.87 12,015 — 3,518,598.86<br />
Taman Shamelin Perkasa Terrace Factory & Distributors<br />
Cheras, Kuala Lumpur Sdn <strong>Bhd</strong>’s Office<br />
(D/P: 13.1.1994)<br />
18, Jalan 6/91 1 1 ⁄2 Storey Office Magazine 11,040 — 865,223.32<br />
Taman Shamelin Perkasa Terrace Factory Section<br />
Cheras, Kuala Lumpur<br />
(D/P: 2.8.1990)<br />
70 <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad
I/We<br />
of<br />
being a member/members of <strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad hereby appoint the Chairman of the Meeting or failing<br />
him<br />
PROXY FORM<br />
of<br />
as my/our proxy/proxies to vote on my/our behalf at the Thirty Second Annual General Meeting of the Company to<br />
be held at Dewan Besar, Level 1, Bangunan Tabung Haji, 201, Jalan Tun Razak, 50400 Kuala Lumpur on Thursday,<br />
20 April 2000 at 11.00 a.m. and at any adjournment thereof.<br />
Ordinary Resolutions For Against Abstain<br />
1. To adopt the audited accounts<br />
2. To declare first and final dividend<br />
3. To re-appoint Tan Sri Dato’ Seri Utama Abdul Samad Idris<br />
To re-elect the Directors under Article 98:-<br />
4. Dato’ Hj Nasir Hj Mat Piah<br />
5. Tan Sri Kamarul Ariffin Mohamed Yassin<br />
6. Tan Sri Dato’ Abdullah Ahmad<br />
7. To approve Directors fees<br />
8. To appoint Auditors<br />
Special Business – As Ordinary Resolutions<br />
9. Acquisition and disposal of assets<br />
10. Issuance of new shares<br />
Please indicate with a tick (X) in the appropriate spaces how you wish your votes to be cast. If you do not indicate how<br />
you wish your proxy to vote on any Resolution, the proxy will vote as he thinks fit at his discretion or abstains from voting.<br />
Signed this _____________________ day of __________ 2000.<br />
Number of Shares<br />
UTUSAN MELAYU (MALAYSIA) BERHAD<br />
(7170-V)<br />
(Incorporated in <strong>Malaysia</strong>)<br />
Signature<br />
In the presence of: __________________<br />
NOTE:<br />
Appointment of Proxy<br />
A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and to vote in his stead. A proxy need not be a member<br />
of the Company. The instrument appointing a proxy must be deposited at the Registrar’s Office at 20th Floor, IGB Plaza, Jalan Kampar Off<br />
Jalan Tun Razak, 50400 Kuala Lumpur not less than forty eight (48) hours before the time set for the meeting. Where the Proxy Form is executed<br />
by a corporation, it must be either under its Common Seal or under the hand of an officer or attorney duly authorised.
TENAGA KOPERAT SDN BHD<br />
20th Floor, IGB Plaza<br />
Jalan Kampar<br />
Off Jalan Tun Razak<br />
50400 Kuala Lumpur<br />
STAMP
Azizi Meor Ngah<br />
36, Jalan Jelutong<br />
Damansara Heights<br />
50480 Kuala Lumpur<br />
10 March 2000<br />
The Board of Directors<br />
<strong>Utusan</strong> <strong>Melayu</strong> (<strong>Malaysia</strong>) Berhad<br />
46M, Jalan Lima<br />
Off Jalan Chan Sow Lin<br />
55200 Kuala Lumpur<br />
Dear Sirs<br />
CHANGE OF AUDITORS<br />
Pursuant of Section 172(11) of the Companies Act, 1965, I, being a shareholder of the<br />
Company, hereby give notice of my intention to nominate Messrs Arthur Andersen & Co for<br />
appointment as Auditors of the Company and to propose the following as an ordinary resolution<br />
to be tabled at the forthcoming Annual General Meeting of the Company, to replace the retiring<br />
Auditors, Messrs PricewaterhouseCoopers.<br />
“That Messrs Arthur Andersen & Co be and are hereby appointed Auditors of the Company in<br />
place of the retiring Auditor, Messrs PricewaterhouseCoopers to hold office until the conclusion<br />
of the next Annual General Meeting at a remuneration to be determined by the Directors.”<br />
Yours faithfully<br />
AZIZI MEOR NGAH