vision - Bursa Malaysia

Resilient 

andF cused 

2009 Annual Report

Vision 

To be The leading and 

The mosT innovaTive auTomoTive reTailer 

Mission 

To provide excellenT cusTomer service 

values 

i . C . l . i . p 

IntegrIty • Carry out one’s roles and 

responsibilities in an honest and sincere manner 

Customer FoCused • Create a positive experience for 

internal and external customers at all times 

core 

LearnIng organIsatIon • Encourage continuous learning 

and promote the exchange of knowledge within EON 

InnovatIon • Pursue new ideas to improve the 

quality of products and services offered 

PrIde • Possess a sense of belonging and 

achievement of being part of the EON family

Resilient 

andF cused 

The two aligned hands on the cover reflect EON’s 

determination to maintain a steady focus on our corporate 

vision and goals amidst the challenges of economic 

uncertainty. We are resolute to remain resilient and focused 

amidst the current challenging operating environment and 

will make every effort to ensure the sustainability of our 

businesses and strengthen our position as a leading 

multi-brand automotive retailer.

COrPOratE PrOfilE 003 

vEhiClEs distributEd by EON 004 

NOtiCE Of aNNual gENEral mEEtiNg 006 

statEmENt aCCOmPaNyiNg NOtiCE Of 

aNNual gENEral mEEtiNg 007 

fiNaNCial highlights 008 

fiNaNCial CalENdar 008 

fivE yEar grOuP fiNaNCial summary 009 

COrPOratE struCturE 010 

COrPOratE iNfOrmatiON 011 

bOard Of dirECtOrs’ PrOfilE 012 

sENiOr maNagEmENt 018 

mEssagE frOm thE ChairmaN 020 

maNagiNg dirECtOr’s 

rEviEw Of OPEratiONs 026 

statEmENt ON 

COrPOratE gOvErNaNCE 032 

statEmENt ON iNtErNal CONtrOl 039 

risk maNagEmENt 041 

rEPOrt Of thE 

bOard audit COmmittEE 042 

additiONal COmPliaNCE iNfOrmatiON 046 

statEmENt Of dirECtOrs’ rEsPONsibility 

fOr PrEPariNg thE fiNaNCial statEmENts 047 

statEmENt ON COrPOratE 

sOCial rEsPONsibility 048 

yEar 2008/2009 EvENts 050 

fiNaNCial statEmENts 053 

aNalysis Of sharEhOldiNg 099 

list Of thirty (30) largEst sharEhOldErs 101 

matErial PrOPErtiEs Of EON grOuP 102 

EON – braNChEs 104 

EurOmObil – braNChEs 106 

EON autO mart – braNChEs 107 

COrPOratE dirECtOry 108 

C ntents 

PrOxy fOrm •

corporaTe 

pr file 

drb-hiCOm bErhad, EON’s largEst stakEhOldEr is ONE Of malaysia’s 

lEadiNg COmPaNiEs listEd ON thE maiN bOard Of bursa 

malaysia sECuritiEs bErhad, PlayiNg aN iNtEgral 

rOlE iN thE NatiON’s rOad tO iNdustrialisatiON. 

drb–hiCOm is diversified yet focused, and have interests in key sectors of the 

economy mainly:- 

AutoMotiVe 

the group’s leadership within this sector is reflected as an 

integrated automotive company through niche segmentation 

and continued strategic alliances with renowned global 

names such as honda, mitsubishi, suzuki, isuzu and audi. 

drb–hiCOm continuously develop new products to 

penetrate new markets in the passenger, commercial 

and defence vehicle sectors and seek new alliances 

to strengthen our base further. 

serViCes 

the rapidly growing service-based industry represents 

new opportunities for drb–hiCOm. their interests 

amongst others include environmental management, 

vehicle inspection, airport ground handling, insurance 

and islamic banking and operation and maintenance of 

the tanjung bin power plant. 

property & infrAstruCture 

drb–hiCOm is extensively involved in retail, commercial and 

residential property development, engineering and infrastructure, and 

has made strong inroads in the construction sector. 

drB-HICom wILL ContInue to Look For oPPortunItIes tHat wILL 

BeneFIt tHe grouP and tHe Country.

vehicles 

distributed 

by eOn 

004 edaran oTomobil nasional berhad (119767-x) 

2009 Annual Report


2009 Annual Report 

www.eon.com.my

noTice of 

annual general 

meeting 

noTice is herebY given ThAT ThE 

TWENTy-FiFTh ANNuAl GENERAl 

MEETiNG (AGM) OF ThE COMpANy Will 

bE hEld AT ThE GlENMARiE bAllROOM, 

hOlidAy iNN GlENMARiE KuAlA 

luMpuR, NO. 1, JAlAN usAhAWAN 

u1/8, sEKsyEN u1, 40250 shAh AlAM, 

sElANGOR dARul EhsAN ON 

ThuRsdAy, 20 AuGusT 2009 AT 11.00 A.M. 

FOR ThE FOllOWiNG puRpOsEs: 

orDinAry Business 

1. to receive and adopt the audited financial statements for the 

financial year ended 31 march 2009 together with the reports 

of the directors and independent auditors thereon. (resolution 1) 

2. to approve the declaration of a final gross dividend of 2 sen 

per share less income tax at 25% for the financial year ended 

31 march 2009. (resolution 2) 

3. to re-elect the following directors who retire in accordance with 

the Company’s articles of association: 

under article 103 

(i) y bhg. datuk aziyah binti bahauddin (resolution 3) 

(ii) y bhg. datuk haji mohd khamil bin Jamil (resolution 4) 

under article 110 

(i) mr. Ooi teik huat (resolution 5) 

(ii) Encik lukman bin ibrahim (resolution 6) 

4. to consider and if thought fit, to pass the following Ordinary resolution 

in accordance with section 129 of the Companies act, 1965: 

“that y bhg tan sri saw huat lye, retiring pursuant to section 

129 of the Companies act, 1965, be and is hereby re-appointed 

as a director of the Company to hold office until the conclusion 

of the next agm.” (resolution 7) 

5. to approve the payment of directors’ fees amounting to 

rm515,858.00 for the financial year ended 31 march 2009. 

(resolution 8) 

6. to re-appoint messrs PricewaterhouseCoopers as auditors 

of the Company and to authorise the directors to fix their 

remuneration. (resolution 9) 



speCiAl Business 

to consider and if thought fit, to pass the following Ordinary resolution: 

7. Proposed shareholders’ mandate for recurrent related Party 

transactions Of a revenue or trading Nature (“rrPts”): 

“that subject always to the provisions of the Companies 

act, 1965 (“act”), the memorandum & articles of association 

of the Company, the listing requirements of bursa malaysia 

securities berhad (“bursa malaysia”), the regulations, 

guidelines and practice notes issued from time to time 

by bursa malaysia or any other regulatory authorities, the 

mandate approved for renewal by the shareholders of the 

Company on 27 august 2008 pursuant to paragraph 10.09 

of the listing requirements of bursa malaysia, authorising 

the Company and its subsidiaries (“EON group”) to enter 

into the rrPts as set out in section 2.1.1 of the Circular to 

shareholders dated 28 July 2009 (“Circular”) with the related 

parties mentioned therein which are necessary for the EON 

group’s day-to-day operations, be and is hereby renewed aNd 

that the scope of such renewed mandate be and is hereby 

extended to the rrPts with new related parties as set out in 

section 2.1.2 of the Circular (“Proposal”) provided that the 

transactions are in the ordinary course of business on an 

arm’s length basis and on normal commercial terms which 

are not more favourable to the related parties than those 

generally available to the public and are not detrimental to 

the minority shareholders of the Company. 

aNd that the authority conferred by such renewed mandate shall 

continue to be in force until: 

(a) the conclusion of the next agm of the Company following the 

forthcoming agm at which the Proposal is approved, at which 

time it will lapse, unless further renewed by a resolution passed 

at the next agm; 

(b) the expiration of the period within the next agm of the Company 

after the forthcoming agm is required to be held pursuant to 

section 143(1) of the act (but shall not extend to such extension 

as may be allowed pursuant to section 143(2) of the act); or 

(c) revoked or varied by ordinary resolution passed by the 

shareholders in a general meeting of the Company, 

whichever is the earlier; 

aNd that the directors of the Company or any one of them be and 

are hereby authorised to complete and do all such acts and things as 

they may consider expedient or necessary to give effect to the Proposal 

and the transactions authorized thereunder.” (resolution 10)

notiCe of DiViDenD pAyMent 

NOtiCE is hErEby givEN that the final gross dividend of 2 sen per 

share less income tax at 25% in respect of the financial year ended 

31 march 2009, if approved by the shareholders at the agm, will be 

paid on 15 september 2009 to the shareholders whose names appear 

in the record of depositors of the Company at the close of business 

on 10 september 2009. 

a depositor shall qualify for entitlement to the dividend only in respect of: 

(a) shares transferred into the depositor’s securities account before 

4.00 p.m. on 10 september 2009 in respect of transfers; and 

(b) shares bought on bursa malaysia securities berhad on a cumentitlement 

basis according to the rules of bursa malaysia 

securities berhad. 

by Order of the board 

CHan CHoy LIn (mia 3930) 

norZaLILI BIntI moHd yusoF (ls 0005569) 

Company secretaries 

shah alam, selangor darul Ehsan 

28 July 2009 

notes 

1. ProXy: 

(i) a member of the Company entitled to attend and vote at the 

meeting is entitled to appoint one or more proxies to attend and 

vote in his stead. a proxy need not be a member of the Company. 

(ii) the instrument appointing the proxy must be deposited at the 

Office of the registrars, shareworks sdn bhd, No. 10-1, Jalan sri 

hartamas 8, taman sri hartamas, 50480 kuala lumpur not less 

than 48 hours before the time appointed for holding the meeting. 

2. eXPLanatory notes on sPeCIaL BusIness: 

the effect of resolution 10 is to renew the mandate for the rrPts 

as set out in section 2.1.1 of the Circular to shareholders dated 28 

July 2009 with the related parties mentioned therein and to extend the 

scope of the mandate to apply to rrPts with new related parties as 

set out in section 2.1.2 of the Circular. 



sTaTemenT 

aCCOmpanying 

nOtiCe Of annual 

general meeting 

Pursuant to Paragraph 8.28 (2) of the Listing 

requirements of Bursa malaysia securities Berhad 

names of directors who are standing for re-election/ 

re-appointment: 

under article 103 of the Company’s articles of association 

y bhg. datuk aziyah binti bahauddin 

y bhg. datuk haji mohd khamil bin Jamil 

under article 110 of the Company’s articles of association 

mr. Ooi teik huat 

Encik lukman bin ibrahim 

under section 129 of the Companies act, 1965 

y bhg. tan sri saw huat lye 

the details of the directors who are standing for re-election/ 

re-appointment are set out in the directors’ profile from page 

12 to page 17 of the annual report. 

www.eon.com.my

financial 

highlights 

profitABility 

financial 

Calendar 

ended 31 march 2009 



group Company 

2008/2009 2007/2008 3 2008/2009 2007/2008 3 

rm'000 rm'000 rm'000 rm'000 

revenue 2,419,872 2,322,322 2,070,653 1,909,720 

Profit/(loss) from operations 1 23,285 70,694 45,348 63,033 

Profit/(loss) before taxation 31,928 116,127 45,209 70,522 

Profit/(loss) attributable to equity holders 25,679 105,364 33,495 54,096 

Key BAlAnCe sHeet DAtA 

total assets 818,143 1,189,754 660,626 1,019,810 

Cash and bank balances and deposits with financial institutions 119,899 383,519 107,545 372,770 

Paid-up capital 248,993 248,993 248,993 248,993 

Equity attributable to equity holders 617,434 879,771 479,205 734,517 

finAnCiAl rAtios 

return on average equity attributable to equity holders (%) 3.4 11.1 5.5 6.5 

return on average assets (%) 2.6 9.0 4.0 5.3 

sHAre inforMAtion 

basic earnings per share (sen) 10 42 13 22 

gross dividend per share (sen) 110 13.5 110 13.5 

dividend less taxation (rm'000) 267,668 24,874 267,668 24,874 

Net tangible assets per share (rm) 2.48 3.53 1.92 2.95 

Price to earnings ratio 2 (times) 5.67 4.25 

Price to book multiple 2 (times) 0.24 0.51 

share price 

– closing as at 31 march 0.59 1.80 

1 before finance cost, share of results of jointly controlled entities & associates, write back/(allowance) for impairment of investment in an associate. 

2 based on closing price as at 31 march. 

3 2007/2008 is for the 15 months period ended 31 march 2008. 

DiViDenDs 

sPeCIaL InterIm FInaL 

announcement 

date 30 June 2008 24 FeB 2009 26 may 2009 

Entitlement 

date 15 JuLy 2008 12 marCH 2009 10 sePt 2009 

Payment 

date 25 JuLy 2008 25 marCH 2009 15 sePt 2009

five Year 

grOup finanCial 

summary 

profitABility 

QuArterly AnnounCeMent of results 

1 st Quarter 27 aug 2008 

2 nd Quarter 24 nov 2008 

3 rd Quarter 24 FeB 2009 

4 th Quarter 26 may 2009 



2008/2009 2007/2008 4 2006 2005 2004 

rm'000 rm'000 rm'000 rm'000 rm'000 

revenue 2,419,872 2,322,322 1,834,885 3,094,103 3,901,173 

Profit/(loss) from operations 1 23,285 70,694 (20,768) 92,706 293,740 

Profit before taxation 31,928 116,127 4,464 101,833 294,569 

Profit attributable to equity holders 25,679 105,364 5,263 78,870 148,027 

Key BAlAnCe sHeet DAtA 

total assets 818,143 1,189,754 1,148,791 1,598,319 1,468,028 

Cash and bank balances and deposits with 

financial institutions 119,899 383,519 228,969 377,469 557,842 

Paid-up capital 248,993 248,993 248,993 248,993 248,993 

Equity attributable to equity holders 617,434 879,771 1,021,597 1,051,214 1,165,245 

finAnCiAl rAtios 

return on average equity attributable to equity holders (%) 3.4 11.1 0.5 7.1 8.6 

return on average assets (%) 2.6 9.0 0.4 5.1 0.9 

sHAre inforMAtion 

basic earnings per share (sen) 10 42 2 32 60 

gross dividend per share (sen) 110 13.5 137 23 200 

dividend less taxation 2 267,668 24,874 249,018 41,239 200,766 

Net tangible assets per share (rm) 2.48 3.53 4.10 4.22 4.68 

Price to earnings ratio 3 (times) 5.7 4.3 86.6 9.5 5.9 

Price to book multiple 3 (times) 0.2 0.5 0.4 0.7 0.8 

share price 

– closing as at 31 march/december 0.59 1.80 1.83 3.00 3.54 

1 before finance cost, share of results of jointly controlled entities & associates, write back/(allowance) for impairment of investment in associates and net gain on disposal 

of investments. 

2 Excluding dividend in specie of EON Capital berhad in 2004. 

3 based on closing price as at 31 march/31 december. 

4 2007/2008 is for the 15 months period ended 31 march 2008. 

significant events affecting results, assets, liabilities and equity: 

2004 - distribution of EON Capital berhad (ECb) shares to shareholders. accordingly, the results of ECb group were excluded from July 2004. 

GenerAl MeetinG 

20 aug 2009 

25 th annual general meeting 

www.eon.com.my

corporaTe 

struCture 

100% 

EON properties 

sdn bhd 

40% 

proton parts 

Centre sdn bhd 

100% 

Euromobil 

sdn bhd 

30% 

Johnson Controls 

Automotive holding 

(M) sdn bhd 



100% 

EONMObil 

sdn bhd 

36% 

hiCOM Megah 

sdn bhd 

100% 

EON Auto Mart 

sdn bhd 

100% 

Automotive Conversion 

Engineering sdn bhd 

40% 

sRT-EON security 

services sdn bhd 

48% 

Mitsubishi Motors 

Malaysia sdn bhd

OARd OF diRECTORs as at 30 June 2009 

y bhg. taN sri marzuki biN mOhd NOOr 

Chairman/independent Non-Executive director 

y bhg. datuk syEd hisham biN syEd wazir 

managing director 

y bhg. datuk haJi mOhd khamil biN Jamil 

Non-independent Non-Executive director 

ENCik lukmaN biN ibrahim 


ENCik Nik hamdam biN Nik hassaN 


CoMpAny seCretAries 

ms. Chan Choy lin 

Puan Norzalili binti mohd yusof 

tel : 03-2052 8136 

fax : 03-2052 8099 

HeAD offiCe 

EON head Office Complex 

No. 2, Persiaran kerjaya 

taman Perindustrian glenmarie 

seksyen u1, 40150 shah alam 

selangor darul Ehsan 

tel : 03-7711 2211 

fax : 03-7803 0009 

reGistereD offiCe 

level 5, wisma drb-hiCOm 

No. 2, Jalan usahawan u1/8 

seksyen u1, 40150 shah alam 

selangor darul Ehsan 

tel : 03-2052 8136 

fax : 03-2052 8099 



mr. kEizO ONO 


y bhg. datuk aziyah biNti bahauddiN 


y bhg. taN sri saw huat lyE 

senior independent Non-Executive director 

mr. OOi tEik huat 

independent Non-Executive director 

mr. riN NaN luN 

alternate director to mr. keizo Ono 

soliCitors 

anad & Noraini 

skrine & Co. 

corporaTe 

infOrmatiOn 

as at 30 June 2009 

BAnKers 

EON bank berhad 

malayan banking berhad 

Cimb bank berhad 

standard Chartered bank malaysia berhad 

AuDitors 

PricewaterhouseCoopers 

Chartered accountants 

level 10, 1 sentral 

Jalan travers 

kuala lumpur sentral 

50470 kuala lumpur 

tel : 03-2173 1188 

fax : 03-2173 1288 

reGistrAr 

shareworks sdn bhd 

No. 10-1, Jalan sri hartamas 8 

taman sri hartamas 

50480 kuala lumpur 

tel : 03-6201 1120 

fax : 03-6201 3121 

stoCK exCHAnGe listinG 

main board of 

bursa malaysia securities berhad 

(listed since 26 July 1990) 

stock Code: 4774 

inVestors relAtions 

tel : 03-2052 8136 

fax : 03-2052 8099 

weBsite 

www.eon.com.my 

www.eon.com.my

BoArD of 

direCtOrs’ 

prOfile 

y BHG. tAn sri MArzuKi Bin MoHD noor 

Chairman / independent Non-Executive director 



y bhg. taN sri marzuki biN mOhd NOOr 

Age 61, Malaysian 

ChAiRMAN / iNdEpENdENT NON-ExECuTivE diRECTOR 

y bhg tan sri marzuki was appointed as independent Non-Executive director 

on 2 June 2008 and is the Chairman of the Company effective 1 July 2008. 

he is also the Chairman of the Nomination and remuneration Committees. 

tan sri marzuki holds a b.a. (honours) from the university of malaya, 

malaysia. he commenced his career in the administrative and diplomatic 

service of malaysia in 1972 and retired from service in august 2006. from 

1972 to 1988, he served as second/first secretary to the Embassy of 

malaysia in rome, baghdad, assistant high Commissioner in Chennai, india, 

Commissioner in hong kong and later as minister-Counsellor/minister in 

brussels, belgium in 1988. 

in 1990, tan sri marzuki was appointed as deputy director general asEaN 

1, ministry of foreign affairs malaysia and later in 1992 as ambassador 

of malaysia to argentina with concurrent accreditation to Paraguay and 

uruguay. in 1996 he was appointed as high Commissioner of malaysia 

to india (concurrently accredited as ambassador to Nepal). he was also 

the ambassador of malaysia to Japan from 1999 to July 2006 before 

his retirement. 

tan sri marzuki also sits on the board of drb-hiCOm berhad, horsedale 

development berhad, hiCOm holdings berhad and several private 

limited companies. 

tan sri marzuki does not have any family relationship with any other 

director and/or major shareholder of EON and has no conflict of interest 

with the Company. he has no convictions for offences within the past 

ten years. 

tan sri marzuki attended four (4) out of four (4) board meetings of the 

Company held in the financial year ended 31 march 2009 following his 

appointment to the board on 2 June 2008.

y bhg. datuk syEd hisham biN syEd wazir 


MANAGiNG diRECTOR 

y bhg datuk syed hisham was appointed as managing director of the 

Company on 12 may 2005. 

datuk syed hisham holds a master of business administration from Ohio 

state university, u.s.a. with beta gamma sigma accredition as well as a 

bsc in mechanical Engineering from Plymouth university, u.k. 

Prior to joining EON, datuk syed hisham has had vast exposure in the 

motor industry. he was the President/Chief Operating Officer of honda 

malaysia sdn bhd from 2003 to april 2005. he has also served drbhiCOm 

Export Corporations sdn bhd as general manager, international 

business from 1998 to 2000, director of Proton Cars (u.k.) Pte ltd from 

1997 to 1998 and general manager of Proton Corporations sdn bhd from 

1995 to 1998. Prior to this he was with PrOtON berhad since 1983. 

as the managing director, datuk syed hisham also serves on the boards 

of several companies within the EON group. he is currently a fellow 

of institute of the motor industry, u.k. and a Council member of the 

malaysian automotive association. 

datuk syed hisham does not have any family relationship with any other 



ten years. 

datuk syed hisham attended all the six (6) board meetings of the 

Company held in the financial year ended 31 march 2009. 

y BHG. DAtuK syeD HisHAM Bin syeD wAzir 

Managing director 



y bhg. datuk haJi mOhd khamil biN Jamil 


NON-iNdEpENdENT NON-ExECuTivE diRECTOR 

y bhg datuk haji mohd khamil was appointed to the board on 18 October 2005. 

he is also a member of the Nomination and remuneration Committees. 

datuk haji mohd khamil holds a bachelor of laws (honours) degree from 

university of london and is a barrister-at-law (honours) at the gray’s 

inn, England and was called to the English bar in 1983. 

datuk haji mohd khamil had his first executive career with bank 

bumiputra malaysia berhad from august 1980 until december 1989. he 

was called to the malaysian bar in september 1990 and was a practicing 

partner of several legal firms before venturing into business in 2001. 

datuk haji mohd khamil is the group managing director of drb-hiCOm berhad 

and sits on the boards of several companies within drb-hiCOm group, bank 

muamalat malaysia berhad and several private limited companies. 

datuk haji mohd khamil is a director and has 10% shareholding in Etika 

strategi sdn bhd, being the ultimate holding company of EON. 

datuk haji mohd khamil does not have any family relationship with any 

other director and/or major shareholder of EON and has no conflict of 

interest with the company. he has no convictions for offences within the 

past ten (10) years. 

datuk haji mohd khamil attended all the six (6) board meetings of the 


y BHG. DAtuK HAji MoHD KHAMil Bin jAMil 


www.eon.com.my

BoArD of 

direCtOrs’ 

prOfile (cont’d.) 

enCiK luKMAn Bin iBrAHiM 




ENCik lukmaN biN ibrahim 



Encik lukman was appointed to the board on 1 June 2009. he is also 

a member of the audit Committee. 

Encik lukman holds a bachelor of business administration (bba) 

magna Cum laude (majoring in accounting & finance) and master of 

business administration from temple university, Philadelphia, usa. he 

is a fellow of association of Chartered Certified accountants (aCCa), 

member Chatered accountant malaysia (aCm) and Certified Public 

accountant (CPa). 

Encik lukman started his career in automotive Corporation (malaysia) 

sdn bhd as head of reconciliation in 1990. in 1991, he joined PrOtON 

berhad as assistant manager, Costing section of accounting department. 

between 1993 to1995, Encik lukman was seconded to PrOtON Parts 

Center sdn bhd as manager, finance and administration department 

and later in 1995, he was seconded to PhN industry sdn bhd. in PhN 

industry sdn bhd, Encik lukman held various capacities with the latest 

appointment being the managing director until November 2008. he is 

currently the group Chief financial Officer of drb-hiCOm berhad. 

Encik lukman does not have any family relationship with any other 



ten (10) years. 

Encik lukman has not attended any board meeting of the Company for 

the financial year ended 31 march 2009 as he was appointed to the 

board on 1 June 2009.

ENCik Nik hamdam biN Nik hassaN 



Encik Nik hamdam was appointed to the board on 2 June 2008. 

Encik Nik hamdam holds an advanced diploma in business administration 

from the institute of technology mara, malaysia and a master of science, 

business administration from the university of wales, institute of science 

and technology Cardiff, wales, united kingdom. 

Encik Nik hamdam started his career in drb-hiCOm group with the 

Corporate Planning division in 1985. thereafter, he was seconded to 

Perusahaan Otomobil Nasional berhad (PrOtON). in 1996, he was 

appointed as deputy general manager at PrOtON Export’s arm, PrOtON 

Corporation sdn bhd. in 1998, he held the position of deputy general 

manager, Planning & business development at drb-hiCOm Export 

Corporation sdn bhd. in October 2000, he was appointed as deputy 

general manager, sales & distribution to hONda malaysia sdn bhd and 

promoted to general manager in 2003. Prior to his current position, he 

was the President/Chief Operating Officer of hONda malaysia sdn bhd 

from 2005 until 2006. he is currently the head of automotive distribution 

of drb-hiCOm berhad. 

Encik Nik hamdam does not have any family relationship with any other 




Encik Nik hamdam attended four (4) out of four (4) board meetings of 

the Company held in the financial year ended 31 march 2009 following 

his appointment to the board on 2 June 2008. 

enCiK niK HAMDAM Bin niK HAssAn 




mr. kEizO ONO 

Age 60, Japanese 


mr. keizo Ono was appointed to the board on 7 January 2008. 

mr. Ono graduated from hitotsubashi university, tokyo in march 1972 

with a degree in Commercial science. 

mr. Ono joined mitsubishi Corporation in 1972 and was assigned to 

indonesia as an adviser in Pt. staco tiga berlian finance from January 

1992 until february 1997. in march 1997 mr. Ono resumed office in 

mitsubishi Corporation where he was appointed the leader of domestic 

team of motor vehicle division in tokyo. later, he was appointed the 

President director of Pt. dipo star finance in indonesia from July 1999 

to september 2007. 

mr. Ono is currently the Chief Executive Officer of mitsubishi motors 

malaysia sdn bhd. 

mr. Ono does not have any family relationship with any other director 

and/or major shareholder of EON and has no conflict of interest with 

the Company. he has no convictions for offences within the past ten 

(10) years. 

mr. Ono attended all the six (6) board meetings of the Company held 

in the financial year ended 31 march 2009. 

Mr. Keizo ono 


www.eon.com.my

BoArD of 

direCtOrs’ 

prOfile (cont’d.) 

Ms. Chan Choy lin 

puan norzalili binti Mohd yusof 

Company secretaries 



y bhg datuk aziyah biNti bahauddiN 



y bhg datuk aziyah was appointed to the board on 30 January 2004. 

datuk aziyah holds a bachelor of arts degree in Economics from 

university of malaya. datuk aziyah began her career in the civil service 

in 1974. she has been in the ministry of finance since service except 

for five years in the government Procurement management division, the 

rest of her career has been with the tax analysis division. 

Currently, she is the under secretary, tax analysis division, ministry 

of finance. datuk aziyah also sits on the boards of malaysia thailand 

Joint authority, malaysian industrial development authority (mida), 

inland revenue board (lhdN) and Petronas (alternate director). 

datuk aziyah does not have any family relationship with any other 


with the Company. she has no convictions for offences within the past 


datuk aziyah attended four (4) out of six (6) board meetings of the 


y BHG DAtuK AziyAH Binti BAHAuDDin 

Non-independent Non-Executive director

y bhg taN sri saw huat lyE 


sENiOR iNdEpENdENT NON-ExECuTivE diRECTOR 

y bhg tan sri saw was appointed to the board on 4 september 2001. 

he is also the Chairman of the audit Committee and a member of the 

remuneration Committee. 

tan sri saw is an Economic graduate of the university of malaya 

(singapore) and has attended the advanced management Programme 

at the harvard business school, boston, usa. he began his career 

with the malayan home and foreign service in 1958 and served the 

malaysian government in various capacities as assistant district Officer 

in kinta south, assistant state secretary in Perak, Chairman of the town 

Council in taiping, assistant federal Commissioner of lands and deputy 

secretary-general in the ministry of transport. after his retirement from 

the Civil service in 1971, he was invited by the government to set up 

malaysian airline system (mas) and was its first general manager and 

Chief Executive, commencing in 1971. he retired from mas in 1982. he 

has sat on the boards of various companies, including development and 

Commercial bank bhd, malaysia-singapore airlines, malaysian helicopter 

services bhd and Naluri Corporation bhd. 

tan sri saw is currently Chairman of guinness anchor bhd and a 

director in non-listed company, huay ferng sdn bhd. he is also a 

fellow of the Chartered institute of transport (london) since 1975. 

tan sri saw does not have any family relationship with any other director and/ 

or major shareholder of EON and has no conflict of interest with the Company. 

he has no convictions for offences within the past ten (10) years. 

tan sri saw attended all the six (6) board meetings of the Company 

held in the financial year ended 31 march 2009. 

y BHG tAn sri sAw HuAt lye 

senior independent Non-Executive director 



mr. OOi tEik huat 


iNdEpENdENT NON-ExECuTivE diRECTOR 

mr. Ooi was appointed to the board on 7 November 2008. he is a 

member of the audit and Nomination Committees. 

mr. Ooi is a member of malaysian institute of accountants and CPa 

australia and holds a bachelor of Economics degree from monash 

university, australia. 

mr. Ooi started his career in 1984 with messrs hew & Co. (now known 

as messrs mazars), Chartered accountants, before joining malaysian 

international merchant bankers berhad (now known as mimb investment 

bank berhad) in 1989. between 1993 and 1996, he was the head of 

Corporate finance at Pengkalen securities sdn. bhd. (now known as Pm 

securities sdn. bhd.). 

mr. Ooi also sits on the boards of tradewinds Plantations berhad, 

drb-hiCOm berhad, mmC Corporation berhad, Johor Port berhad, 

tradewinds (m) berhad and several private limited companies. he is 

presently a director of meridian solutions sdn. bhd. 

mr. Ooi does not have any family relationship with any other director 

and/or major shareholder of the Company and has no conflict of interest 

with the Company. he has had no convictions for offences within the past 


mr. Ooi attended two (2) out of two (2) board meetings of the Company 

held in the financial year ended 31 march 2009 following his appointment 

to the board on 7 November 2008. 

Mr. ooi teiK HuAt 

independent Non-Executive director 

www.eon.com.my

senior 

management 

7 

8 

5 



6 

3 2 

4 

9 

10 

11 

12 

13 

1. ENCik badrul fEisal biN abdul rahim 

Chief Operating Officer, 

(not in the picture) 

2. mr. yiP kOk hiNg 

Chief financial Officer 

3. PuaN NOrChahya biNti ahmad 

senior manager, 

Chief Operating Officer’s Office 

4. ENCik abdul wahab biN mOhd NOOr 

head, 

Proton Operations

5. ym tENgku zaiNudiN biN 

tENgku Jaafar 

senior manager, 

automotive Conversion Engineering sdn bhd 

6. mr. daNiEl ONg 

manager, legal 

7. ENCik mOhd asri biN JusOh 

head, 

strategic & Corporate Planning 

8. mr. staNlEy taN hENg lam 

Chief Executive Officer, 

Euromobil sdn bhd 

9. ENCik taha biN buJaNg 

head, 

sales Network support 

10. mr. lOh liNg hOwE 

head, 

EON auto mart sdn bhd 



11. ENCik ahmad zaiNi biN mOhd ariffiN 

manager, 

EON Properties sdn bhd 

12. PuaN NOrzalili biNti mOhd yusOf 

head, secretarial 

13. ENCik ahmad kamal biN abdul maJid 

head, 

after sales Network support 

www.eon.com.my


2009 Annual Report

message from 

the Chairman 

dear shareholders, 

i AM plEAsEd TO REpORT ThAT EON bERhAd WEAThEREd ThE ChAllENGEs OF 

A diFFiCulT OpERATiNG ENviRONMENT TO dElivER sOuNd REsulTs FOR ThE 

FiNANCiAl yEAR ENdEd 31 MARCh 2009. OuR REsiliENCE ANd FOCus hAvE 

ENAblEd ThE GROup TO suCCEssFully MANOEuvRE ThROuGh AN ExTREMEly 

COMpETiTivE plAyiNG FiEld TO TuRN iN ANOThER yEAR OF pROFiTAbiliTy WhilE 

CREATiNG vAluE FOR OuR shAREhOldERs. 

rAtionAlisinG operAtions, 

DeliVerinG results 

the year under review saw us continuing 

to rationalise our operations, streamline our 

resources and realign ourselves to market 

needs to make ourselves a more agile and 

efficient automotive player. as a result of 

these measures, EON is today more relevant 

in the evolving automotive landscape and 

more in tune with customer needs. Even 

as we have taken the necessary steps to 

strengthen our current position, the challenges 

are daunting. Nevertheless, we are confident 

that the group’s resilience and focus will 

enable us to ride out the storm, prepare us 

to tap the many opportunities as well as 

continue to deliver results. 

inDustry perforMAnCe 

in 2008, malaysia’s auto industry experienced 

stellar performance bolstered by strong 

economic growth, positive customer sentiment 

as well as attractive and innovative financing 

schemes. sales were further boosted 

by several new model introductions and 

aggressive sales efforts by industry players. 



as a result, the total industry volume (“tiv”) 

of motor vehicles sold in 2008 registered 

an impressive 12.5% increase over 2007’s 

results, with passenger vehicle sales 

representing a 91% share of 2008’s tiv. 

finAnCiAl perforMAnCe 

for the financial year ended 31 march 2009, 

the EON group posted revenue of rm2,419.9 

million, an improvement over revenue of 

rm2,322.3 million for the 15-month financial 

period ended 31 march 2008. the increase 

in revenue was mainly due to higher sales 

volume of Proton vehicles particularly the 

new saga and Pesona models. 

however, for the financial year ended 31 

march 2009, the group posted a lower net 

profit of rm25.7 million in comparison to 

net profit of rm105.4 million achieved in the 

preceding 15-month period. the relatively 

lower net profit for the financial year under 

review was mainly attributable to the higher 

share of losses from associates amounting 

rm15.1 million as opposed to a share of 

profit of rm1.5 million in the preceding 

financial period. 

the losses were mainly due to hiCOm megah 

sdn bhd recording a property impairment loss 

for the year. in addition, the previous financial 

period ended 31 march 2008 incorporated 

financial results over a period of 15 months 

including a gain on the disposal of properties 

of rm34.3 million. 

DiViDenD pAyout 

EON’s board of directors remains committed 

to delivering value to our shareholders. for 

the financial year ended 31 march 2009, the 

board of directors is pleased to propose a 

final dividend of 2 sen per share less income 

tax at 25% (2008: 13.5 sen per share less 

26% tax). this is on top of the special taxexempt 

dividend of rm1.00 per share and an 

interim dividend of 8 sen per share less 25% 

tax which were paid on 25 July 2008 and 

25 march 2009 respectively for the financial 

year ended 31 march 2009. the proposed 

final dividend is subject to the approval of the 

Company’s shareholders. 

www.eon.com.my

message from 

the Chairman (cont’d.) 



CorporAte DeVelopMents 

Previously, following a general Offer by 

majority shareholder hiCOm holdings berhad 

(“hiCOm”), a subsidiary of drb-hiCOm, for 

the remainder of EON’s shares held by the 

public as well as its proposal to de-list EON, 

an Extraordinary general meeting was held 

on 30 June 2008. at this meeting, EON’s 

shareholders resolved that the Company 

would maintain its listing status. Prior to this, 

trading of EON shares had been suspended 

on 11 march 2008. bursa securities has 

since granted EON a further extension of time 

until 29 december 2009 to make good the 

public shareholding spread requirement. 

in accordance with our shareholders’ wishes 

to continue with the listing status of EON, we 

are confident that we will make good the 25% 

requirement and that the trading suspension 

will be lifted. moving forward, the board and 

management of EON will review our business 

model following our ongoing rationalisation 

exercise to determine how best to deliver value 

to our shareholders. we remain committed to 

delivering value to all of you. 

strAteGiC initiAtiVes 

Over the course of the financial year, we 

continued to implement various strategic 

initiatives to further bolster growth amidst 

an enormously challenging and competitive 

automotive landscape. 

Value Generating Activities 

the year saw us focusing our efforts on 

enhancing existing value generating activities 

relating to the collision repair business 

and auto industry education initiatives via 

akademi saga. we also implemented several 

new initiatives including the setting up of 

state-of-the-art natural gas vehicle (“Ngv”) 

installation centres via our subsidiary, 

automotive Conversion Engineering sdn bhd 

(“aCE”), to meet strong customer demand 

particularly from companies. aCE is set 

to play a key role in the Ngv installation 

business and has plans in the pipeline to 

collaborate with leading universities on the 

development of alternative fuels.



Customer-centric initiatives 

Customer-centric activities are integral to the Company’s value proposition and we 

proactively implement initiatives throughout the entire sales and after sales cycle 

to strengthen EON’s brand awareness among existing and new customers. Over the 

course of the year, we endeavoured to elevate after sales service and delivery efforts 

by building upon the sahabat EON programme and sought to build goodwill with our 

customers through promoting loyalty programmes. 

through our kiss programme conducted at schools, we sought to inculcate an 

awareness of road safety among school children as well as indirectly build brand 

awareness and goodwill with them and their parents. Over the course of the year, we 

successfully rolled out kiss programmes at schools in Putrajaya and subang Jaya in 

collaboration with the road safety department and the ministry of Education. 

On top of the existing regional Part Centres located throughout Peninsular and East 

malaysia which provide high-quality service and ensure timely delivery of spare parts 

to customers, we plan to elevate customer convenience by bringing our sales, service 

and spare parts activities together under the banner of EON 3s Centres. 

industry education efforts 

tasked with developing new training strategies and improving after-sales multi-brand 

technical training, our technical training centre, akademi saga, continues to meet the 

increasing demand for automotive-related education and training. in 2008, akademi 

saga expanded its coverage to kuantan, kuching, kota kinabalu, batu Pahat and alor 

star and at the same time established business relationship with risda, fElCra, 

Jabatan belia & sukan wilayah Perseketuan and selangor as well as yayasan raja 

muda selangor. akademi saga will continue to play a vital role in supplying highly 

skilful mechanics for EON’s branches and the industry. 

www.eon.com.my

message from 

the Chairman (cont’d.) 

new rationalisation strategy 

On 8 may 2009, EON entered into a new master 

dealership agreement (“mda”) with PrOtON 

holdings berhad’s distribution arm, Proton Edar 

sdn bhd (“Edar”), to rationalise our sales and 

services network for Proton vehicles. with the 

completion of the mda, EON shall continue to 

distribute and service Proton cars for Edar. 

this rationalisation exercise will also result 

in the migration of all EON sales and service 

dealers to Edar and will see the de-layering and 

streamlining of the existing dealer network into a 

leaner and stronger one, thus enabling all parties 

to further reduce their operational costs. 

moving forward, EON will be more focused 

on its sales and customer service operations. 

with this development, EON is set to play 

another important role in partnering Proton 

in its quest for excellence. at the same time, 

we will work to strategise, reorganise and 

explore new value-generating activities to 

ensure EON’s continued success. 

prospeCts 

economic outlook 

we are undoubtedly in the midst of economically 

challenging times. the global economy is 

expected to continue to weaken in 2009 as 

most economies continue to experience sharp 

economic contractions. Economic recovery 

can only be brought about via comprehensive 

measures that must include the restoration of 

the financial intermediation process and the 

resumption of lending activity. 



in the face of downward pressure on 

international trade and financial markets, 

the malaysian economy is bracing itself 

to face the worst. while the malaysian 

government has responded swiftly to the 

crisis by adopting expansionary fiscal and 

monetary policies to shield the economy 

against the headwinds of plunging exports 

and slowing consumer spending, it remains 

to be seen how these measures will play out. 

Even as bank Negara malaysia had earlier 

forecast that prospects for the malaysian 

economy would remain challenging and that 

we may achieve growth of between -1% to 

1% in 2009, the government (in may 2009) 

has further revised its forecast for 2009 

downward to -4% or -5% following a worsethan-expected 

growth contraction in the first 

quarter of 2009. 

sectoral outlook 

the global crisis has severely impacted 

automotive players the world over with several 

of them posting their worst performance ever 

while others are on the road to bankruptcy. 

several players are turning to mergers to 

survive, while consolidation is fast becoming 

the industry norm. 

On the malaysian front, the malaysian 

automotive association (“maa”) had forecast 

that the year’s tiv would drop by 12.4% to 

480,000 units due to the full impact of the 

global financial crisis and uncertainties in 

the local economy and has decided to review 

their forecast on a quarterly basis. 

for the first quarter ended march 2009, the 

maa announced that the tiv had dropped 

by some 9.2% to 118,681 units against 

130,774 units in the corresponding quarter 

in 2008. this was notwithstanding the fact 

that march’s sales volume was 7,530 units 

or 20.5% higher than february’s figure. 

subsequently, as the result of an unexpected 

increase in hire purchase loan interest rates, 

april 2009’s sales volume dropped by 3,070 

units or 7% against march’s volume. in may 

2009, the sales volume increased by 2,809 

units or 7% against the previous month. 

may’s higher sales were attributable to a 

16.6% increase in sales of national makes, 

while sales of imported makes declined by 

4.5% as a result of costlier hire purchase 

loans. as at 18 June 2009, year-on-year 

and year-to-date sales were trailing behind 

2008’s sales by 8% and 11% respectively. 

strAteGy GoinG forwArD 

recognising the stiff market challenges ahead 

especially in light of lower impending sales 

volume from our streamlined Proton activities, 

we will continue in our efforts to improve 

productivity and cost efficiencies within our 

existing sales and service networks. the 

group will proactively fine-tune our multibrand 

retailer position based on market 

needs and further develop value creation 

activities to mitigate the effects of slower 

economic growth.

to maintain our profitability and to stay 

relevant to the industry, we will also adopt 

these specific business strategies: 

• expand the Audi and Mitsubishi 

businesses; 

• develop and increase market penetration 

via effective cross-selling programme 

with the drb-hiCOm group; 

• collaborate with financial institution to 

offer attractive financing packages; 

• continue to implement brand awareness 

and customer loyalty programmes; 

• continue to create more awareness 

on our multi-brand services which will 

lead to an increase in throughput; 

• continue to build alliances with 

insurance companies for improved 

collision repair businesses; and 

• upgrade the courses and activities 

conducted by akademi saga as well 

as equip our employees with the 

requisite knowledge and skills to face 

the challenges ahead. 

by focusing our efforts on implementing these 

strategies and continuing to innovate in order 

to maintain our competitive edge, we are 

confident that we will be able to ride out the 

current storm. in all this, we remain committed 

to pursuing our long-term growth strategy of 

being an agile, robust and customer-centric 

entity. above all, we will be mindful of the 

need to meet the expectations of shareholders, 

customers, employees and other stakeholders 

for long-term sustainable growth. 



AppreCiAtion 

On behalf of EON’s board of directors, 

i wish to convey my sincere thanks to all 

our customers and shareholders for their 

continuous loyalty, support and confidence in 

EON and we look forward to delivering value 

to you for yet another year. 

i wish to thank our partners and principals, 

namely Proton Edar sdn bhd, audi ag, 

hyundai-sime darby motors sdn bhd, 

mitsubishi Corporation, mitsubishi motors 

malaysia sdn bhd, volkswagen group 

malaysia and suzuki malaysia automobile 

sdn bhd, as well as our dealers, suppliers, 

contractors and government authorities, 

for their trust and confidence in us. their 

tireless cooperation, expert advice and 

worthy support has helped make us a better 

company and more determined to face the 

challenges ahead. 

allow me to express my gratitude to our 

dedicated network of Proton vehicle sales 

and service dealers who will now continue 

under the banner of Edar. we thank them 

for their commitment and professionalism 

over the years they have been with us and 

trust that they will continue to give their best 

and extend their fullest cooperation to Edar. 

i would also like to extend the board’s 

heartfelt gratitude to our fellow directors, 

dato’ mohd redza shah bin abdul wahid 

who resigned on 3 November 2008 as well 

as datuk ir (dr) ahmad zaidee bin laidin, 

dato’ anwar bin aji and datuk abdul hamid 

bin sawal, who all resigned on 1 June 2009. 

we thank these gentlemen for their worthy 

contributions during their tenure on EON’s 

board and bid them the very best in their 

future endeavours. On behalf of the board 

of directors, i would like to welcome on 

board mr. Ooi teik huat and En. lukman bin 

ibrahim who were appointed to the board 

on 7 November 2008 and 1 June 2009 

respectively. we look forward to their insights 

and wise counsel. 

last but not least, i wish to thank our 

dedicated team of employees for their loyalty 

and persistence in these challenging times. 

i trust that they will continue to stand by us 

as we proceed to realign ourselves to the 

latest market-driven changes. i also trust 

that all our stakeholders will continue to lend 

us their unwavering support as we strive 

to overcome the challenges and tap the 

opportunities before us. 

thank you. 

tan srI marZukI BIn moHd noor 

CHaIrman 

www.eon.com.my

MAnAGinG DireCtor’s 

review Of 

OperatiOns 

DeAr sHAreHolDers, 

ThE FiNANCiAl yEAR ENdEd 31 MARCh 

2009 sAW ThE EON GROup CONTiNuiNG 

TO iMplEMENT vARiOus MEAsuREs 

TO RATiONAlisE ANd sTREAMliNE OuR 

OpERATiONs WiTh ThE AiM OF MAiNTAiNiNG 

OuR COMpETiTivE EdGE. As WE ENTEREd 

OuR TWENTy-FOuRTh yEAR OF AuTOMOTivE 

OpERATiONs AMidsT A hiGhly COMpETiTivE 

lANdsCApE, WE did sO WiTh A NEW 

REsOlvE TO MEET ThE ChAllENGEs OF ThE 

MARKETplACE hEAd ON WhilE MAKiNG ThE 

MOsT OF ThE OppORTuNiTiEs bEFORE us. 

WE ExiTEd uNpROFiTAblE busiNEss ANd 

EMbRACEd NEW OppORTuNiTiEs WhERE iT 

MAdE sENsE TO dO sO. i AM plEAsEd TO sAy 

ThAT OuR EFFORTs ENAblEd us TO ONCE 

AGAiN dElivER pOsiTivE REsulTs ANd EMERGE 

A lEANER ANd MORE COMpETiTivE ENTiTy. 


2009 Annual Report

inDustry perforMAnCe 

the malaysian auto industry experienced 

a stellar year in 2008 on the back of 

strong economic growth, positive customer 

sentiment in the first nine months of the year, 

as well as attractive and innovative financing 

schemes featuring low hire purchase rates, 

longer repayment periods and higher margins 

of financing. the large number of new model 

introductions and aggressive sales efforts by 

industry players further bolstered sales. as a 

result, the total industry volume (“tiv”) of 

motor vehicles sold in the country in 2008 

stood at 548,115 units against the 487,176 

units registered in 2007, an impressive 12.5% 

increase and the second highest result after 

2005’s record breaking year. 

the passenger vehicle segment comprising 

passenger cars, window vans, multi-purpose 

vehicles and four-wheel drive/sport utility 

vehicles, totalled 497,459 units or close to a 

91% share of 2008’s tiv. Proton passenger 

vehicles comprised 141,780 units or 28.5% 

of total passenger vehicle market share, an 

increase of 24,159 units over 117,621 units 

in 2007. however, in the first quarter of 

2009, the malaysian automotive association 

(“maa”) announced that tiv had dropped 

by 9% to 118,681 units in comparison to 

130,774 units in the corresponding quarter in 

2008 amidst a flagging economy. 

Group perforMAnCe 



for the financial year ended 31 march 2009, 

the EON group recorded revenue of rm2,419.9 

million on the back of higher sales volume of 

Proton, mitsubishi and audi vehicles. Net 

profit attributable to shareholders stood at 

rm25.7 million while basic earnings per 

share was 10 sen. 

eon BerHAD 

new Vehicle sales 

for the financial year under review, EON’s 

sales of Proton vehicles were higher at 47,187 

units over the 12-month financial period 

compared to 45,916 units over the preceding 

15-month financial period. 

the strong ties we have established with 

Proton Edar sdn bhd (“Edar”) helped to 

improve stock availability to a great extent 

and ensured quicker deliveries to meet 

customer demand. with the execution of 

the new master dealership agreement 

(“mda”) with Edar on 8 may 2009, we 

will focus our efforts on rationalising our 

sales and service centres with the aim of 

improving and strengthening the Proton 

dealer network nationwide. 

After sales service 

the after sales division registered service 

throughput of 441,376 units for the financial 

year ended 31 march 2009. Of this total 

throughput, EON branches accounted for 

273,615 units while our franchised service 

dealers accounted for the remaining 

167,761 units. Collision repair throughput at 

our branches touched 6,914 units over the 

same period. 

to entice more customers into EON service 

centres, our after sales team undertook 

several promotional initiatives over the course 

of the year. these included special service 

packages, genuine parts campaigns, mobile 

service and maintenance initiatives, as well 

as seasonal and festive service campaigns. 

moving forward, after sales will focus its 

efforts on establishing incentives for branch 

personnel in a bid to improve workshop 

throughput and dollar per car activities. 

the division will also continue to explore 

opportunities to bolster the ties with corporate 

customers and government organisations. 

www.eon.com.my

managing direcTor’s 

review Of 

OperatiOns (cont’d.) 



euroMoBil sDn BHD (“euromobil”) 

Euromobil, our luxury car retailing arm posted 

revenue of rm52.8 million and profit before tax 

(“Pbt”) of rm3.2 million for the year under 

review amidst a highly competitive market 

environment. the year saw Euromobil focusing 

its efforts on affirming the audi marque as a 

premium brand through aggressively introducing 

several new models. following the launch of 

the celebrated new audi a4 (b8) model in 

June 2008, Euromobil received encouraging 

orders which has led to the a4 currently being 

the volume seller for the company. the audi 

a6 with its new facelift introduced in January 

2009, also received encouraging response. 

going forward, Euromobil is aligning its 

business plan to audi ag’s plan for malaysia 

where the company will invest in advertising 

and promotional activities as well as increase 

its sales and after sales network. the 

company set up a new 3s outlet at Penang 

in June 2009 followed by a new showroom in 

kuala lumpur by september 2009. the month 

of may also saw the company launching the 

new audi Q5 which received overwhelming 

response while the new 3.2l a8 model is 

expected to be launched by the end of the 

year. Euromobil is targeting to set up a new 

showroom in Johor by October 2009. 

with effect from 1 april 2009, Euromobil 

ceased its volkswagen business. with that, 

the company will turn all its efforts to driving 

the audi brand forward. 

eonMoBil sDn BHD (“eonMoBil”) 

EONmObil, which retails the hyundai and 

suzuki range of vehicles, posted total revenue 

of rm10.9 million for the financial year under 

review and a loss of rm0.4 million. due 

to flagging market performance, EONmObil 

has discontinued these two dealerships. 

the hyundai and suzuki dealerships were 

discontinued on 30 June 2008 and 1 april 

2009 respectively. 

eon Auto MArt sDn BHD 

(“eon Auto Mart”) 

EON auto mart retails the mitsubishi range of 

vehicles in malaysia. the financial year saw 

EON auto mart recording Pbt of rm4.6 million 

on the back of revenue of rm285.4 million. the 

company is currently in the midst of opening 

a new 3s centre at temasya, glenmarie 

that will focus on sales, service and spare 

parts activities. the 3s centre is targeted to 

commence business by september 2009.

AutoMotiVe ConVersion enGineerinG sDn BHD (“ACe”) 

aCE has traditionally been involved in the conversion and modification of Proton vehicles into 

Executive and limousine models. aCE posted revenue of rm11.8 million for the year under review 

and Pbt of rm2.1 million. 

during the year, aCE aggressively explored opportunities in the area of natural gas vehicles (“Ngv”). 

to date, aCE’s flagship Ngv centre located at the bukit raja industrial area has been recognised 

as the preferred Ngv installer by customers such as alam flora and gas malaysia as well as 

several government linked companies, public transport companies and individuals. response from 

taxi companies has been overwhelming and aCE will ride on this trend to strengthen its position 

as the Ngv leader in malaysia. 

MitsuBisHi Motors MAlAysiA sDn BHD (“MMM”) 

mmm is the exclusive distributor of mitsubishi vehicles in malaysia. the company recorded a 

credible 73% increase in sales, registering a wholesale volume of 7,321 units as at 31 march 2009 

in comparison to 4,230 units as at 31 march 2008. 

since the introduction of the mitsubishi brand into the market in 2005, the marque has won and 

continues to win several accolades for its various models. the year saw mitusbishi’s triton lite 

scooping up autocar asEaN’s Pick-up of the year 2008 award, the third consecutive year that 

mmm has won the award since 2006. at the same time, the triton 3.2l also trumped its class in 

the Nst-maybank Car of the year awards 2008. in addition, the grandis was named the small/ 

medium mPv of the year by autocar asEaN. 

proton pArts Centre sDn BHD (“ppC”) 

PPC, a jointly controlled entity of EON and Proton, is primarily involved in the warehousing and 

distribution of motor vehicle spare parts. for the year under review, PPC registered revenue 

of rm216 million and Pbt of rm22.16 million. during the year, PPC enhanced its warehouse 

management system (“wms”) which covers the operations of its regional parts centres in East 

malaysia and the southern, northern and east coast regions of Peninsular malaysia. the company 

also launched its own business-to-consumer (“b2C”) website to cater to the needs of customers 

that prefer to buy parts through the internet. the improvements to PPC’s wms and the introduction 

of its b2C website will enhance customer convenience as well as the service efficiency and quality 

of its service centres. 



www.eon.com.my

managing direcTor’s 

review Of 

OperatiOns (cont’d.) 

Group HuMAn resourCes (“Hr”) 

group hr continues to support the group’s 

strategy and business growth by making 

significant contributions to employee learning 

and development activities. the year saw our 

hr team continuing to implement training 

activities to enhance employee productivity 

and efficiency as well as manage people 

challenges and initiatives in support of the 

group business plan. group hr also played 

an important role in inculcating a positive 

working environment and work culture, which 

included maintaining cordial relationships 

with the four in-house unions and promoting 

increased awareness of occupational safety, 

health and environment issues. 

moving forward, group hr will continue 

to achieve high quality human resource 

management throughout the organisation 

via increasing learning and development 

opportunities and leveraging on technology 

for operational efficiency. 



inforMAtion teCHnoloGy 

DiVision (“it”) 

information technology has been used as 

means to drive the organisation towards 

greater integration and cohesion. leveraging on 

today’s sophisticated hardware, software, and 

communications technologies, several projects 

were initiated to further enhance the usage of 

internet and maximise the value of EON’s it 

investments while improving productivity in the 

areas of sales and after-sales. 

improvements to enhance the reliability of the 

it infrastructure have also been completed 

via the upgrading of uNix and windows 

servers, storage, the local area Network 

backbone, backup system and database. the 

mis division will continue to make every 

effort to determine areas and opportunities 

through which EON as a whole can gain 

maximum business benefit from. 

AKADeMi sAGA 

since its inception in 1991, akademi saga, 

the group’s technical training centre has been 

meeting the demand for automotive-related 

education and training through providing 

certificate and diploma programmes. akademi 

saga recently extended its curriculum by 

offering the diploma kemahiran malaysia to 

its first batch of students in march 2009. to 

date, more than 30,000 internal and external 

trainees from EON branches, franchise 

service dealers, sales dealers and various 

other organisations have passed through the 

doors of the academy. 

to cater to the increasing demand for 

automotive education and training, akademi 

saga set up another five centres throughout 

Peninsular and East malaysia and has plans 

in the pipeline to fulfil its vision of becoming 

a pure automotive university college and a 

contract research facility for the nation.

GoinG forwArD 

the market environment of the motor industry 

is expected to remain challenging and 

competitive for the financial year ending 31 

march 2010. in view of the current uncertain 

economic conditions coupled with cautious 

consumer spending and more stringent credit 

evaluation criteria by financial institutions, 

the group expects the demand for motor 

vehicles to slow down further in the current 

financial year. 

following the group’s rationalisation exercise, 

all EON’s sales and service dealers will be 

offered the opportunity to migrate to Edar 

as their dealers. while EON will still have the 

Proton business to move forward on, albeit in a 

different form, the migration coupled with the 

challenging market environment is expected 

to impact the profitability of the group going 

forward. we are currently initiating cost 

reduction exercises and measures to mitigate 

the impact of the rationalisation, including 



the repositioning of the Proton dealership 

business and reorganisation of our network 

and manpower to suit this new situation. we 

are also reviewing our business model and 

exploring new value generating activities to 

ensure shareholder value is maintained. 

Our many initiatives include turning our 

branches into 3s or 1s+2s centres under 

one roof and undertaking collision recovery 

quick service. we will expand the collision 

repair business by appointing 15 satellite body 

repairers who will be tasked with carrying 

out high standards of work back-to-back with 

insurance companies. we will also move into 

other automotive-related businesses that can 

bring value including educational and Ngv 

installation services. 

On the sales front, we will continue to drive 

the audi and mitsubishi business and we 

expect sales of popular Proton vehicles like 

the New saga and newly launched Exora to 

help us move forward. also in the pipeline 

are outreach programmes which will see EON 

launching out into smaller towns inclusive of 

fElda areas to establish customer contact 

where there are no dealers. we are confident 

that even as we embark on these initiatives 

and explore new areas for growth, we are 

confident of meeting our earnings target and 

delivering value to our shareholders. in doing 

so, we trust that all our stakeholders will 

continue to lend us their steadfast support as 

we make every effort to face the challenges 

before us and embrace the opportunities. 

datuk syed HIsHam BIn syed waZIr 

managIng dIreCtor 

www.eon.com.my

sTaTemenT on 

COrpOrate 

gOvernanCe 

ThE bOARd OF diRECTORs (“ThE bOARd”) is 

COMMiTTEd TO ApplyiNG ThE pRiNCiplEs ANd 

bEsT pRACTiCEs RECOMMENdEd by ThE MAlAysiAN 

COdE ON CORpORATE GOvERNANCE (“COdE”) 

TO iMpROvE ANd ENhANCE ThE sTANdARds 

OF CORpORATE GOvERNANCE pRACTiCEd 

WiThiN ThE GROup As WEll As TO pROTECT 

ANd ENhANCE shAREhOldERs’ vAluE ANd 

FiNANCiAl pERFORMANCE. ThE bOARd bEliEvEs 

ThAT EFFECTivE CORpORATE GOvERNANCE is 

pREMisEd ON ThREE iMpORTANT CORNERsTONEs 

NAMEly, iNdEpENdENCE, ACCOuNTAbiliTy ANd 

TRANspARENCy. 

towards achieving this, the board not only observes the Principles of Corporate governance and the 

best Practices on Corporate governance as set out in the Code, but has also put in place stringent 

parameters for adherence by the management. the board has adopted a board Charter which 

provides amongst others guidance and clarity for directors and management with regard to the role 

of the board and its committees, the requirements of the directors in carrying out their roles and 

in discharging their duties towards the Company as well as the board’s operating practices besides 

emphasizing the relationship between the board, the management and the shareholders. 

DireCtors 

Composition of the Board 

the board comprises members with relevant expertise and experiences drawn from business, 

financial, technical and public service. the wide spectrum of skills and experiences has given them 

an edge and an added strength in terms of leadership and management, thus ensuring that the 

Company and its subsidiaries is steered and guided by an accountable and competent board. 



the current board has nine (9) directors 

comprising eight (8) Non-Executive directors 

(including the Chairman) of whom three (3) 

are independent as defined by the listing 

requirements of bursa malaysia securities 

berhad. hence, the board fulfils the prescribed 

requirements for one-third of the membership 

of the board to be independent board members. 

No individual or group of individuals dominated 

the board’s decision-making powers and 

processes. the number of directors reflects 

fairly the investment of the shareholders. 

the names of the directors in office during the 

year and their attendance at board meetings 

are as set out in the directors’ Profiles from 

pages 12 to 17. 

the Chairman has never served as the Chief 

Executive Officer of the group. the Chairman 

is primarily responsible for ensuring board 

effectiveness and conduct whilst the managing 

director oversees the day-to-day running 

of the business including implementation of 

the policies and strategies adopted by the 

board and clarifying matters relating to the 

group’s business to the board. the managing 

director’s in-depth and intimate knowledge 

of the group’s affairs contribute significantly 

towards managing the direction of the group 

to achieve its goals and objectives. 

the group considers that its complement of 

Non-Executive directors provide an effective 

board with a mix of industry specific 

knowledge and broad business and commercial 

experience. the presence of independent Non- 

Executive directors is particularly important 

in corporate accountability as they provide 

unbiased and independent views, advice and 

judgement to take into account of the interests, 

not only of the group, but also of shareholders 

(majority and minority), employees, customers, 

suppliers and the many communities in which 

the group conducts business. this balance 

enables the board to provide clear and effective 

leadership to the group and to bring informed 

and independent judgement to many aspects 

of the group’s strategies and performance 

so as to ensure that the highest standards 

of conduct and integrity are maintained. the 

Nomination Committee upon its annual review 

carried out and is satisfied that the size and 

composition of the board is appropriate and 

well balance to fairly reflect the interests of 

major and minority shareholders.

in accordance with the requirements of the 

Code, y bhg tan sri saw huat lye is currently 

the senior independent Non-Executive director 

who is available to deal with concerns affecting 

the group, other than through the Chairman. 

roles and responsibilities 

of the Board 

the board retains full and effective control 

of the group. this includes responsibility 

for determining the group’s overall strategic 

direction as well as development and control 

of the group. key matters, such as approval of 

annual and quarterly results, acquisitions and 

disposals, as well as material agreements, 

major capital expenditures, budgets and longterm 

plans are reserved for the board. these 

matters are set out in a formal statement in 

the board Charter. 

the directors are required to make written 

declarations and it is their responsibility to 

declare whether they have a potential or 

actual conflict of interest in any transaction. 

where issues involve conflict of interest, the 

interested directors abstain from discussing 

or voting on the matter. 

the board meets at least once every quarter 

and additional meetings convened between the 

scheduled meetings as special board meeting 

as and when necessary. for the financial year 

ended 31 march 2009, the board held four (4) 

regular meetings and two (2) special board 

meetings. at each regular board meeting, 

there was a full financial and business review 

and discussion, including report on trading 

performance to-date against the annual 

budget and financial plan previously approved 

by the board for the financial year. 

the Chairman of the board plays a pivotal 

role in ensuring that directors are properly 

briefed on issues arising at board meetings, 

so that they can make effective contributions 

as board members. as part of good corporate 

governance, the Chairman encourages a healthy 

debate on issues raised at meetings, gives 

opportunity to directors who wish to speak on 

the motions, either for or against them. 

minutes of every board meeting are circulated 

to each director for their perusal prior to 

confirmation of the minutes at the following 

board meeting. subsequently, all matters 

arising, deliberations and conclusions of 

the meetings of the board are clearly and 

accurately recorded in minutes of meetings 



by the Company secretary, confirmed by the 

board and signed as a correct record by the 

Chairman. the proceedings and resolutions 

passed at each board meeting are kept in 

the statutory register at the registered office 

of the Company. 

the consideration and approval of the annual 

management Plan (amP) is a significant 

annual exercise by the board in establishing 

the goals of the group for the following year 

which involves an assessment of the projected 

performance of the group’s business. 

at appropriate times, the board also considers 

the principal risks affecting the business of the 

group and the measures that could be taken to 

mitigate such risks. the External auditors, on 

annual basis, issue an audit Committee report 

raising issues on risks affecting the operations 

of the group. the board, through its various 

committees, addresses and monitors the risks 

and concerns affecting the group. 

Committees 

specific responsibilities have been delegated 

to the board Committees, all of which have 

written constitutions and terms of reference. 

these Committees have the authority to 

examine particular issues and report back to 

the board with their recommendations. the 

ultimate responsibility for the final decision on 

all matters however, lies with the entire board. 

the Committees are as follows: 

1. Audit Committee 

Please refer to the report of the board 

audit Committee on pages 42 to 45. 

2. nomination Committee 

y bhg. tan sri marzuki bin mohd Noor 

(Chairman) 



the members of the Nomination 

Committee, are majority independent. 

the Committee meets at least once a 

year and is responsible for: 

• Determining the criteria for Board 

membership; 

• Identifying and recommending 

to the board, candidates for 

directorships of the Company and 

its subsidiaries; 

• Recommending to the Board on 

the appointment of directors on 

board Committees; 

• Ensuring that adequate training 

and orientation is provided to 

the new directors with respect 

to the business, structure and 

management of the group as well 

as the expectations of the board; 

• Evaluating the effectiveness of 

the board and board Committees 

with regard to their structure, 

size, balance and composition 

including the required mix of 

skills, experience and core 

competencies that Non-Executive 

directors should bring to the 

board, and contributions of each 

individual director; 

• Recommending to the Board 

whether directors retiring by 

rotation should be put forward for 

re-election; 

• Ensuring an appropriate framework 

and plan for board and management 

succession for the group; 

• Evaluating and approving the 

appointment, promotion, transfer 

and dismissal of senior executive 

positions, except that of the managing 

director and the Executive directors 

which will be decided by the board 

based on the recommendation of 

the Committee. 

the Nomination Committee has 

developed and implemented procedures 

for evaluating the board of directors. 

the evaluation included the following: 

(i) Performance evaluation of the 

board of directors 

(ii) determination of the competency 

profile of the board of directors 

(iii) Performance evaluation of the 

managing director and Executive 

directors 

during the financial year ended 31 march 2009, 

a total of three (3) meetings were held by 

the Nomination Committee and the members 

registered full attendance at all meetings. 

www.eon.com.my

sTaTemenT on 

COrpOrate 

gOvernanCe (cont’d.) 

3. remuneration Committee 

y bhg. tan sri marzuki bin mohd Noor 

(Chairman) 



the members of the remuneration 

Committee are majority independent. 

the Committee meets at least once a 

year and is responsible for: 

• Establishing the Managing Director 

and the Executive directors’ goals 

and objectives; 

• Reviewing the Managing Director 

and the Executive directors’ 

performance against the goals 

and objectives set; 

• Establishing and recommending 

the remuneration structure 

and policy for the managing 

director, Executive directors and 

management; 

• The terms of employment/ 

contract of employment/ service, 

any benefit, incentive scheme 

entitlement and other bonuses, 

fees and expenses, compensation 

payable on the termination of 

the service contract by the 

Company and group and to 

review for changes to the policy, 

as necessary; 

• Determining the remuneration of 

the general manager and senior 

managers and recommend the 

remuneration of the managing 

director and Executive directors; 

• Reviewing and recommending to the 

board on any new Employees’ share 

Option scheme and/or amendments 

to the existing scheme; 



• Considering other matters as referred 

to the Committee by the board; 

during the financial year ended 31 march 2009, 

a total of three (3) meetings were held by the 

remuneration Committee and the members 

registered full attendance at all meetings. 

4. Management Committee 

y bhg. datuk syed hisham 

bin syed wazir (Chairman) 

Encik Nik hamdam bin Nik hassan 

Encik badrul feisal bin abdul rahim 

mr. yip kok hing 

the management Committee meets on a 

regular basis and is responsible, within 

the limits of the policies determined and 

powers delegated by the board, for: 

• Formulating Company and Group 

policies for recommendation to, 

and further consideration by, the 

board of directors. 

• Acting as advisory body to the 

board of directors on operational 

and management matters. 

• Discussing and deciding upon 

the implementation of key policy 

decisions of the board of directors. 

• Discussing and recommending 

to the board of directors on all 

matters important to the strategic 

operations of the Company and 

the group. 

• Co-ordinating activities and building 

up synergies within the group. 

• Approving new franchises for 

vehicles and recommending the 

same for subsequent approval by 

the board of directors. 

• Approving the appointment of 

new vendors with an expected 

business value exceeding rm1.5 

million per annum. 

• Approving new Business Products, 

services and Concepts undertaken 

by the divisions in the Company. 

• Approving the appointment of 

new franchise service dealers 

and franchise Parts dealers. 

• Approving investment/divestments 

proposals and recommending the 

same for approval by the board of 

directors. 

• Reviewing the Limits of Authority of 

the Company and recommending 

the same for approval by the 

board of directors. 

• Reviewing the Annual Management 

Plan and Projections and 

recommending the same for approval 

by the board of directors. 

• Reviewing and approving the Credit 

Policy of the Company. 

• Discussing and recommending for 

approval, by the board of directors, 

of expenditure with a cumulative 

value exceeding rm1.5 million 

per annum. 

• Approving trading terms including any 

discount/rebate/incentives schemes 

for customers and dealers. 

• Approving any commission or 

incentive schemes for staff. 

• Approving any payment schemes for 

introducers, spotters, runners, etc. 

• Approving business activities 

in other countries including 

participation in trade shows, rally 

sport activities, etc. 

• Approving the organisation 

structure change including the 

creation or rationalisation of 

divisions and departments and 

the headcount considerations. 

• Approving applications for 

unsecured credit exceeding 

rm50,000 per customer. 

during the financial year ended 31 march 

2009, a total of six (6) meetings were held by 

the Committee and the members registered 

full attendance at all meetings.

supply of information 

all directors have the same right of access to all 

information within the group and the duty to make 

further enquiries whenever deemed necessary 

whether as a full board or in their individual 

capacity, in furtherance of their duties. the board 

is supplied in a timely fashion with information 

in a form and of a quality appropriate to enable 

it to discharge its duties. in addition to financial 

information, other information deemed suitable 

such as customer satisfaction, product and service 

quality, and market share are also provided. 

an agenda and a set of board papers are 

sent to all directors in advance prior to the 

meeting. the board papers include, among 

others, the following: 

• Minutes of meetings of all Board 

Committees; 

• Current operating and business issues; 

• Annual management plan, forecasts and 

projections; 

• Quarterly and annual financial reports; 

• Acquisitions and disposals of assets of 

substantial value; 

• Major investment and financial decisions; 

• Changes to management and control 

structure of the group, including key 

policies, procedures and authority limits; 

• Reports, advices and opinions of the 

external consultants/advisors as had 

been sought for. 

the board has access to the Company secretaries 

who are available to provide the directors with 

the appropriate advice and services and also to 

ensure that the relevant procedures are followed. 

the directors are constantly updated on the 

latest developments in the legislations as well 

as on statutory and regulatory requirements 

pertaining to their duties and responsibilities. 

the board also believes in adopting a handson 

approach to the group’s business activities 

as part of the board’s assessment of its 

effectiveness, and the decision-making body of 

the group. when necessary, the directors also 

visit locations of business units that provide 

an insight on operational matters which would 

assist the board to make effective decisions 

relating to the group. 



Appointments to the Board 

there is a formal and transparent procedure 

for the appointment of new directors to the 

board, with the Nomination Committee making 

recommendations to the board. Please refer 

to page 33 for details of the Nomination 

Committee. following the appointment of 

new directors to the board, the Nomination 

Committee ensures that an induction 

programme is arranged, including visits to the 

group’s businesses and meetings with senior 

management as appropriate, to enable them 

to get a full understanding of the nature of the 

group’s businesses, current issues within the 

group and the Corporate strategies as well as 

the structure and management of the group. 

Directors’ training 

all existing directors have attended the 

mandatory accreditation Programme (maP) 

conducted by bursatra sdn bhd as prescribed 

by bursa malaysia. they are also encouraged 

to attend continuous education programs and 

seminars to keep abreast with developments 

in the market place, to further enhance their 

business acumen and professionalism in 

discharging their duties to the group. 

apart from attending conferences and seminar 

organized by the external/internal organizers 

during the financial year, the directors are 

also continuously received briefings and 

updates on regulatory, industry and legal 

developments, including information on the 

group’s businesses and operations and other 

initiatives undertaken by management. 

seminars and conferences attended by 

directors during the financial year ended 

31 march 2009 include the following: 

• Effective Chairmanship. 

• Management of Anti-Fraud Programmes 

and Control (guidance to Prevent and 

deter fraud). 

• CEO’s Business Forum. 

• Seminar on Legal Variables. 

• Risk Management for Business Success. 

• Perdana Leadership Foundation Seminar. 

• Director’s Continuing Education Programme. 

(Organised by guiness anchor berhad 

and fraser & Neave holdings berhad) 

• Investor Relations – A Necessity, 

Not a Choice. 

• Best Practices of Boardroom Affairs. 

• UEM Group – Chairman’s Forum. 

• UEM July 2008 Directors Gathering. 

• Programme for Khazanah Nominee 

director 2008. 

• MINDA: Chairman’s Forum – Driving a 

board to high Performance. 

• UEM Board Strategic Dialogue Session. 

• Latest Emerging Issues for Public 

Companies. 

• Foreign Exchange Forecast in 2009. 

• Global Economy Outlook. 

• Managing Profitability During an 

Economic downturn: what directors 

need to know. 

re-election of Board Members 

in accordance with the Company’s articles of 

association, all directors who are appointed 

by the board are subject to election by 

shareholders at the first annual general 

meeting following their appointment. Pursuant 

to section 129 (2) of the Companies act, 

1965, directors who are over the age of 

seventy (70) years shall retire at every annual 

general meeting, may offer themselves for 

re-appointment to hold office until the next 

annual general meeting. 

the articles also provide that all directors shall 

retire from office once in every three years but 

shall be eligible for re-election. at each annual 

general meeting, one-third of the remaining 

directors retire and offer themselves for reelection. 

in practice, over a number of years, 

this means that every director has stood for 

re-election at least once every three years. 

the Nomination Committee reviews and assesses 

annually the proposed re-election/re-appointment 

of existing directors who are seeking re-election/ 

re-appointment of director to the board for 

approval, before tabling the proposal to the 

shareholders at the annual general meeting. 

www.eon.com.my

sTaTemenT on 

COrpOrate 


DireCtors’ reMunerAtion 

the objective of the group’s policy on directors’ remuneration is to ensure that the group attracts 

and retains directors of the calibre needed to run the group successfully. in the case of Executive 

director, the component parts of remuneration are structured so as to link rewards to corporate and 

individual performances. in the case of Non-Executive directors, the level of remuneration reflects the 

experience and level of responsibilities undertaken by the Non-Executive director concerned. 

the remuneration Committee (details of the remuneration Committee are set out on page 34) is 

responsible for setting the policy framework and for making recommendations to the board on all 

elements of the remuneration and other terms of employment of each Executive director. the Executive 

directors abstain from the deliberations and voting decisions in respect to their remuneration. 

the shareholders at the annual general meeting approve the aggregate annual directors’ fees for Non- 

Executive directors. the board decides the determination of the fees for each Non-Executive director. 

details of directors’ remuneration from the group for the financial year ended 31 march 2009 

distinguishing between Executive and Non-Executive directors, with categorisation into appropriate 

components and the number of directors whose remuneration falls into each successive band of 

rm50,000 are set out below: 

grouP 

executive non-executive 

directors director total 

rm rm rm 

directors’ fees – 515,858 515,858 

salaries 581,979 – 581,979 

benefits & allowances 104,648 177,662 282,310 

total 686,627 693,520 1,380,147 

executive non-executive 

directors’ remuneration director directors total 

0 – rm50,000 – 6 6 

rm50,001 – rm100,000 – 6 6 

rm650,001 – rm700,000 1 – 1 

total 1 12* 13 

* included two (2) Non-Executive directors who have resigned during the financial year. 



(a) Directors’ fees 

& Meeting Allowances 

the shareholders at the annual general 

meeting approve the aggregate annual 

directors’ fees for Non-Executive directors. 

the board determines the fees payable 

to each Non-Executive director after 

considering comparable organisation and 

the level of responsibilities undertaken 

by the director. all Non-Executive 

directors are paid meeting allowance 

to reimburse for their expenses incurred 

for attendance at each board and board 

Committee meeting. 

(b) salaries 

the basic salary inclusive of statutory 

employer contributions to the 

Employees Provident fund for the 

senior management is recommended 

by the remuneration Committee, taking 

into account the performance of the 

individual, the consumer price index 

and information from independent 

sources on the rates of salary for 

similar positions in a selected group 

of comparable companies. salaries are 

reviewed annually. 

the board has endorsed the adoption 

of key Performance indicators (kPis) as 

part of the overall governance to enhance 

the management of performance for 

the Company. following this, kPis were 

formulated for the managing director and 

senior management. the performance based 

bonuses paid to these personnel are strictly 

tied to the attainment of the kPis and overall 

achievements. Performance assessments 

of these personnel together with the 

rewards due were rigorously undertaken 

at the remuneration Committee level with 

the board making the final determination 

pursuant to the recommendations of the 

remuneration Committee.

(c) Bonus 

the managing director is paid a discretionary 

bonus as with the other employees. 

the criterion for the discretionary bonus 

is dependent on various performance 

measures of the Company together with an 

assessment of his individual performance 

during the period. the remuneration 

Committee approves discretionary bonus for 

the managing director and management. 

(d) Benefits-in-Kind 

Other customary benefits, such as car, 

driver, allowances, etc are made available 

to directors as appropriate. 

(e) service Contract 

the managing director has a service 

contract with the Company. the notice 

period for termination of employment under 

the service contracts for the managing 

director is three (3) months. 

sHAreHolDers 

Dialogue between the Company and 

shareholders/investors 

the board values dialogue with investors and 

appreciates the keen interest of shareholders and 

investors in the group’s performance. the board 

acknowledges the need for shareholders to be 

informed of all material business matters affecting 

the group. 

the Company supports the Code’s principle 

to encourage shareholders’ participation. the 

Company’s articles of association allows a member 

entitled to attend and vote to appoint a proxy to 

attend and vote instead of the member and also 

provide that a proxy need not be a member of 

the Company. 

in addition to various announcements made 

during the year, the timely release of financial 

results on a quarterly basis in line with the 

bursa malaysia securities berhad’s (“bursa 

malaysia”) listing requirements provides 

shareholders with an overview of the group’s 

performance and operations. 

investor relations 



the board values dialogue with investors and appreciates the keen interest of shareholders and 

investors in the group’s performance. the board acknowledges the need for shareholders to be 

informed of all material business matters affecting the group. 

the Company communicates with the shareholders and stakeholders regularly through the timely 

release of financial results on a quarterly basis, press releases and announcements to bursa 

malaysia which provide shareholders with an overview of the group’s performance and operations. 

in addition, the Company initiates dialogues with its shareholders as and when required. 

Annual report 

the directors believe that an important channel to reach shareholders and investors is 

through the annual report. besides including the comprehensive financial performance 

and information on the business activities, the group strives to improve the contents of 

the annual report in line with developments in corporate governance practices. 

the Company’s annual report can be obtained by accessing the Company’s website at 

www.eon.com.my. 

the Annual General Meeting (AGM) 

the Company encourages the exercise of voting rights and constructive dialogue between the 

board and the shareholders at the agm, whereby shareholders are given opportunity to pose 

their questions on proposed resolutions and the group’s operations. Notice of the agm and 

annual reports are sent out to shareholders at least twenty-one (21) days before the date of 

the meeting. 

besides the normal agenda for the agm, the board presents the progress and performance of the 

business as contained in the annual report and provides opportunities for shareholders to raise 

questions pertaining to the business activities of the group. 

Announcement of Quarterly results for the financial year ended 31 March 2009 

the directors view the timely announcement of the quarterly financial results as vital to the dissemination 

of information to the shareholders and investors community. the Company has consistently announced 

its quarterly results before the bursa malaysia’s deadlines as indicated below: 

Announcement of Quarterly 

results 2008/2009 Date of Announcement 

1st Quarter (30 June 2008) 27 august 2008 

2nd Quarter (30 september 2008) 24 November 2008 

3rd Quarter (31 december 2008) 24 february 2009 

4th Quarter (31 march 2009) 26 may 2009 

www.eon.com.my

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COrpOrate 


Continuing Disclosure of Material information 

EON has long observed the continuing disclosure obligation imposed upon a listed issuer by bursa 

malaysia. the Company has constantly adopted and applied the principles of best practices in 

Corporate disclosure Policy and Procedures as laid down by bursa malaysia. 

senior Management personnel in investor relations Activities 

any queries regarding the EON group may be conveyed to: 

• Y Bhg. Tan Sri Marzuki bin Mohd Noor, Chairman 

• Y Bhg. Datuk Syed Hisham bin Syed Wazir, Managing Director 

• Y Bhg. Tan Sri Saw Huat Lye, Senior Independent Non-Executive Director 

telephone number : 603-2052 8136 

facsimile number : 603-2052 8099 

ACCountABility AnD AuDit 

financial reporting 

the directors have a responsibility to present a fair assessment of the group’s position and 

prospects in the quarterly reports to bursa malaysia and the annual report to shareholders. the 

audit Committee assists the board in scrutinising information for disclosure to ensure accuracy, 

adequacy and completeness. the statement of directors’ responsibility for preparing the financial 

statements is set out on page 47 of this annual report. 

internal Control 

the Code requires the board to maintain a sound system of internal control to safeguard 

shareholders’ investment and the group’s assets. information on the group’s internal control is 

presented in the statement on internal Control laid out on pages 39 to 40. 

relationship with the Auditors 

the group has always maintained a close and transparent relationship with its auditors in seeking 

professional advice and ensuring compliance with the accounting standards in malaysia as well 

as meeting the auditors professional requirements. the audit Committee met the external auditors 

without the presence of the management to discuss any issues arising from their audit. 

the external auditors, messrs PricewaterhouseCoopers has continued to report to the shareholders 

of the Company on its opinion which is included as part of the group’s financial reports with 

respect to their audit on each year’s statutory financial statements. the auditors also highlight to 

the audit Committee and the board of directors on matters that require the board’s attention. 

a summary of the activities of the audit Committee during the financial period, including the evaluation 

of independent audit process, are set out in the audit Committee report on pages 42 to 45. 



related party transactions 

all related party transactions are reviewed by 

the audit Committee to ensure compliance 

with bursa malaysia listing requirements 

and the appropriateness of such transactions 

before recommending to the board for its 

approval. with regards to recurrent related 

party transactions (rrPts), the board has 

established and adopted the appropriate 

procedures to ensure such transactions will 

be negotiated and agreed at an arm’s length 

basis, and on normal commercial terms which 

are not more favourable to the related parties 

than those generally available to the public, 

and are not to the detriment of the minority 

shareholders of the Company. 

the shareholders’ mandate in respect of 

rrPts is obtained at the annual general 

meeting of the Company on a yearly basis 

prior to entering of such transactions. the 

breakdown of the aggregate value of the 

rrPts transacted during the financial year 

ended 31 march 2009 are disclosed on pages 

94 to 95 of the annual report in line with 

the disclosure and threshold requirements 

of bursa malaysia listing requirements. 

Other significant related party transactions 

are set out under the Notes to the financial 

statements on pages 66 to 97 of the annual 

report. 

this statement has been approved by the 

board at its meeting on 26 may 2009. 

tan srI marZukI BIn moHd noor 

ChairmaN

sTaTemenT on 

internal 

COntrOl 

ThE bOARd OF diRECTORs (ThE bOARd) OF EdARAN OTOMObil NAsiONAl 

bERhAd (ThE GROup) pROvidEs ThE FOllOWiNG sTATEMENT ON iNTERNAl 

CONTROl OF ThE GROup puRsuANT TO pARAGRAph 15.27 (b) OF ThE lisTiNG 

REquiREMENTs OF ThE buRsA MAlAysiA sECuRiTiEs bERhAd. 

for the financial year under review, the 

board affirms that they are committed to 

uphold a sound system of internal control 

and risk management practice in addition 

to compliance with listing requirements that 

includes the assurance of its adequacy and 

integrity at all times, and its alignment with 

the business objectives. 

the board has established a process for 

identifying, evaluating and managing significant 

risks faced by the group. the board is of the 

view that the system of internal control and 

risk management practices of the group is 

reasonably adequate and effective to safeguard 

shareholders’ investments and group’s assets. 

No major internal control weaknesses were 



identified that may result in any material loss, 

contingency or uncertainty that would require 

disclosure in this annual report. 

Key internal Control elements 

the board is fully committed to ensuring that 

a proper control environment is maintained at 

the group. the key elements of the group’s 

internal control are as follows: 

• Organisational Structure 

a proper organisational structure with clear 

lines of responsibility and accountability 

in the group is in place that is directly 

aligned to the strategic and operational 

demands of the business. Each operational 

unit is headed by personnel who are fully 

accountable to ensure that the business 

activities are implemented in compliance 

with the group’s objectives and policies. 

• Board Committees 

specific board responsibilities have been 

delegated to committees established with 

formalized and specific terms of reference, 

to assist the board in the execution 

of its responsibilities. apart from the 

management Committee which meets on 

a regular basis and is responsible within 

the limits of the policies and authorities 

delegated by the board, the board is 

assisted by the audit, Nomination and 

remuneration Committees. 

www.eon.com.my

sTaTemenT on 

internal 

COntrOl (cont’d.) 

Please refer to pages 33 to 34 on further 

explanations of these board Committees. 

• Independent Audit Committee 

the audit Committee, whose members 

are majority independent Non-Executive 

directors, reviews the activities and 

resources of the group’s internal audit 

function, the financial reporting and 

reports of the internal and external 

auditors on the adequacy and integrity 

of the system of internal control and the 

financial results. 

Please refer to pages 42 to 45 on the activities 

of the audit Committee. 

• Internal Audit Function 

Effective 1 april 2008, the group’s 

internal audit function is centralised 

under the purview of the group internal 

audit division (giad) of drb-hiCOm 

berhad (the holding Company) to assist 

the audit Committee in discharging their 

duties effectively. the giad regularly 

and systematically reviews the business 

processes of the operating units within 

the group to evaluate the adequacy 

and effectiveness of the group’s 

system of internal controls. the audit 

observations and status of actions taken 

by the management in addressing the 

observations raised are reported to the 

audit Committee by giad. the planned 

corrective and improvement action 

are monitored and followed up by the 

management together with the giad. 

the board of directors is provided with 

reasonable assurance that the system 

of internal control is adequate and that 

the group’s governance, control and risk 

management processes are effective. 

• Policies and Procedures 

Policies and procedures are established, 

and where relevant are in line with its 

holding Company, to provide sufficient 

guidelines and directives for proper 

management and conduct of the business 

and operation activities of the group. 



• Annual Business Plan and Financial 

and operational review 

the audit Committee reviews the 

quarterly financial statements and 

performance of the group before it is 

tabled to the board of directors for 

their approval. the group undertakes 

business planning and budgetary 

exercise annually to establish plans and 

targets against which performances are 

compared and monitored. management 

accounts and reports are prepared 

monthly for monitoring performances. 

• Information and communication 

relevant and pertinent information 

including the group’s performance 

and changes in organization structure 

and policies and procedures are 

communicated clearly and timely 

enabling employees to carry out their 

responsibilities effectively. 

risK MAnAGeMent 

for the financial year under review, the group 

(excluding associates and joint ventures) has 

in place an ongoing process in identifying, 

evaluating and managing the principal risks 

faced by the group. it is for this reason that 

it continues to embed the risk management 

process in the conduct of the day-to-day 

business operations to provide reasonable 

assurance of achieving the group’s business 

objectives while at the same time safeguarding 

and enhancing shareholders’ investments and 

the company’s assets. 

the main objectives of the risk management 

are as follows: 

• Ensuring proper framework for identifying 

and managing risk exposures. 

• Ensuring that contingency plans are in 

place to handle any crisis situation. 

• Improving business performance by 

improving decision making and planning. 

• Providing a sound basis for integrated 

risk management and internal control as 

components of good corporate governance. 

• Promoting a more innovative culture 

in which the taking of calculated risks 

in various opportunities to benefit the 

organisation is encouraged. 

• Fostering an environment where staff 

assume responsibility for managing risks. 

risk Management framework 

the group has formalised its risk management 

framework which encompasses the following 

key elements: 

• A Risk Management Committee. This 

is made up of three (3) members and 

chaired by the managing director. it 

has been established with the objective 

to assist the board of directors in 

their responsibilities in establishing an 

effective risk management system. the 

Committee also serves as an oversight 

to the board by providing the necessary 

information required to understand and 

assess the risks. 

the risk management Committee is 

guided by its terms of reference and the 

risk management Policy. it is assisted 

by a risk manager whose function is to 

facilitate the risk management Process. 

• A database of all risks and its corresponding 

controls which have been identified has 

been created. the information is used 

to produce a detailed risk register, and 

individual risk profiles for the business and 

support units. key risk to each business 

and support unit’s objectives are identified 

and scored for likelihood of the risks 

occurring and the magnitude of impact. 

• A consolidated risk profile of the Group 

was developed which, together with a 

report of the key findings, was discussed 

in the risk management Committee 

meetings in april, august, November 

2008 and february 2009 before being 

submitted to the audit Committee and 

subsequently to the board of directors. 


board at its meeting on 26 may 2009.

isk 

management 

EON RECOGNisEs ThE iMpORTANCE OF sOuNd 

iNTERNAl CONTROls ANd RisK MANAGEMENT 

pRACTiCEs TO GOOd CORpORATE GOvERNANCE. 

iT is FOR This REAsON ThAT iT CONTiNuEs TO EMbEd 

ThE RisK MANAGEMENT pROCEss iN ThE CONduCT OF 

ThE dAy-TO-dAy busiNEss OpERATiONs TO pROvidE 

REAsONAblE AssuRANCE OF AChiEviNG ThE GROup’s 

busiNEss ObJECTivEs WhilE AT ThE sAME TiME 

sAFEGuARdiNG ANd ENhANCiNG shAREhOldERs’ 

iNvEsTMENTs ANd ThE COMpANy’s AssETs. 

the main objectives of the risk management are as follows: 

• Ensuring proper framework for identifying and managing risk exposures. 

• Ensuring that contingency plans are in place to handle any crisis situation. 

• Improving business performance by improving decision-making and planning. 

• Providing a sound basis for integrated risk management and internal control as components 

of good corporate governance. 

• Promoting a more innovative culture in which the taking of calculated risks in various 

opportunities to benefit the organisation is encouraged. 

• Fostering an environment where staff assume responsibility for managing risks. 



risK MAnAGeMent frAMeworK 

the group has formalised its risk management 

framework which encompasses the following 

key elements:- 

• A Risk Management Committee. This 

is made up of three (3) members and 

chaired by the managing director. it has 

been established with the objective to 

assist the board in their responsibilities in 

establishing an effective risk management 

system. the Committee also serves as 

an oversight to the board by providing 

the necessary information required to 

understand and assess the risks. 

the risk management Committee 

is guided by its terms of reference 

and the risk management Policy. 

it is assisted by a risk manager 

whose function is to facilitate the risk 

management Process. 

• A database of all risks and its 

corresponding controls which have 

been identified has been created. the 

information is used to produce a detailed 

risk register, and individual risk profiles 

for the business and support units. key 

risks to each business and support unit’s 

objectives are identified and scored for 

likelihood of the risks occurring and the 

magnitude of impact. 

• A consolidated risk profile of the Group 

was developed which, together with a 

report of the key findings was discussed 

in the risk management Committee 

meetings in april, august, November 

2008 and february 2009 before being 

submitted to the audit Committee and 

subsequently to the board of directors. 

risK MAnAGeMent proCess 

there is in place a formal and on-going process 

to identify, evaluate and manage significant 

risks faced by the group. this process entails 

the overall establishment of an appropriate 

framework to embed risk management in the 

process and activities of the group. 

www.eon.com.my

eporT of The 

bOard audit 

COmmittee 

ThE bOARd OF diRECTORs OF EdARAN OTOMObil NAsiONAl bERhAd is plEAsEd 

TO pREsENT ThE REpORT OF ThE AudiT COMMiTTEE FOR ThE FiNANCiAl yEAR ENdEd 

31 MARCh 2009. 

CoMposition 

the composition of the audit Committee 

appointed by the board from amongst its 

members comprises the following, all of whom 

are independent Non-Executive directors. One 

of the audit Committee members is a member 

of the malaysian institute of accountants. 

Chairman 


(senior independent Non-Executive director) 

Members 


(independent Non-Executive director) 

appointed w.e.f. 7 November 2008 

Encik lukman bin ibrahim 

(Non-independent Non-Executive director) 

appointed w.e.f. 1 June 2009 

y bhg. datuk abdul hamid bin sawal 

(independent Non-Executive director) 

resigned w.e.f. 1 June 2009 

y bhg. dato’ mohd redza shah bin abdul wahid 

(Non-independent Non-Executive director) 

resigned w.e.f. 3 November 2008 



four audit Committee meetings were held for the financial year ended 31 march 2009 and details 

of attendance of the Committee members were as follows: 

members attendance attendance 

y bhg. tan sri saw huat lye all 4 meetings 

mr. Ooi teik huat 2 out of 2 meetings 

(appointed w.e.f. 7 November 2008) 

Encik lukman bin ibrahim Not applicable 

(appointed w.e.f. 1 June 2009) 

y bhg. datuk abdul hamid bin sawal all 4 meetings 

(resigned w.e.f. 1 June 2009) 

y bhg. dato’ mohd redza shah bin abdul wahid 2 out of 2 meetings 

(resigned w.e.f. 3 November 2008) 

terMs of referenCe of tHe BoArD AuDit CoMMittee 

Quorum 

the quorum for the audit Committee meeting shall be two members and the majority of members 

present must be independent directors. 

terms of reference 

the audit Committee has written terms of reference that deal with its authority and duties. 

Meetings and Attendance 

(1) the audit Committee shall meet at least four times each year and the events in which they 

shall meet are as follows: 

(a) prior to the current year’s audit; 

(b) prior to the board’s approval of the announcement of the quarterly results to bursa 

malaysia securities berhad (bursa malaysia); and 

(c) prior to the approval of the financial statements by the full board. 

(2) the external auditor has the right to appear and be heard at any meeting of the audit Committee 

and shall appear before the Committee when required to do so by the Committee. 

(3) upon the request of the external auditor, the Chairman of the audit Committee shall convene 

a meeting of the Committee to consider any matter the external auditor believes should be 

brought to the attention of the directors or shareholders. 

(4) as necessary or desirable, the Chairman may request that other directors, members of 

management, the internal auditor, employees and representatives of the external auditor 

attend any particular audit Committee meeting only at the audit Committee’s invitation, 

specific to the relevant meeting.

(5) the Company secretary of the Company 

shall be present at all meetings to 

record minutes. 

(6) minutes of all meetings shall be prepared 

and sent to the audit Committee 

members and the Company directors 

who are not members of the audit 

Committee. a copy of the minutes shall 

be filed at the Company. 

Authority 

(1) the audit Committee may regulate its 

own procedures, in particular, the calling 

of meetings, the notice to be given of such 

meetings, the voting and proceedings 

of such meetings, the keeping of 

minutes and the custody, production and 

inspection of such minutes. 

(2) the audit Committee in performance of its 

duties shall, in accordance with a procedure 

to be determined by the board of directors 

and at the cost of the Company: 

(a) have the authority to investigate 

any matter of the Company and 

its subsidiaries within its terms 

of reference and all employees 

shall be directed to cooperate as 

requested by members of the audit 

Committee; 

(b) be empowered to retain persons 

having special competence as 

necessary and have the resources 

that are required to assist the 

audit Committee in fulfilling its 

responsibilities; 

(c) have full and unrestricted access 

to any information pertaining to 

the Company; 

(d) have direct communication 

channels with the external and 

the internal auditors at all times 

and the Chairman of the audit 

Committee may call a meeting 

whenever he deems it necessary; 

(e) be able to obtain independent 

professional or other advice; and 

(f) be able to convene meetings with 

the external auditor, excluding 

the attendance of the executive 

members of the Committee 

whenever deemed necessary. 



(3) the audit Committee shall have the 

power to instruct the internal auditor 

to carry out investigations if deemed 

necessary and to submit reports arising 

there from to the audit Committee. 

responsibilities 

the audit Committee shall: 

(1) serve as a focal point for communications 

between non-committee directors, the 

external auditor, the internal auditor and 

the Company’s management as their 

duties relate to financial accounting, 

reporting and controls; 

(2) report formally to the board of directors 

and shall assist the board of directors 

in fulfilling its fiduciary responsibilities 

as to accounting policies and reporting 

practices of the Company and the 

sufficiency of auditing thereto; 

(3) be the board’s principal agent in 

assuring the independence of the 

Company’s external auditor, the integrity 

of management and the adequacy 

of disclosures to shareholders. the 

opportunity of the external auditor to 

meet with the entire board of directors 

as needed is not restricted, however; 

(4) have familiarity through the individual 

efforts of its members, with the 

accounting and reporting principles and 

practices applied by the Company in 

preparing its financial statements. the 

audit Committee shall make or cause 

to be made all necessary inquiries of 

management and the external auditor 

concerning established standards of 

corporate conduct and performance and 

deviations there from. 

scope and functions 

the audit Committee shall, amongst others, 

discharge the following functions:- 

(1) review the audit plan with the external 

auditor prior to the annual audit. the 

scope and general extent of the external 

auditor’s audit examination, including the 

engagement letter, and confirmation that 

management has placed no restrictions 

as to the scope and extent thereto. 

the external auditor’s fees are to be 

arranged with management and annually 

summarised for the audit Committee’s 

review. the audit Committee’s review 

should entail an understanding from the 

external auditor of the factors considered 

by the external auditor in determining 

the audit scope including:- 

(a) industry and business risk 

characteristics of the Company; 

(b) external reporting requirements; 

(c) materiality of the various segments 

of the Company’s consolidated 

and non-consolidated activities; 

(d) quality of accounting and his 

evaluation of the system of 

internal controls; 

(e) extent of involvement of internal 

audit in the audit examination; 

(f) review of the scope, nature of 

work and results of the internal 

audit procedures; and 

(g) other areas to be covered during 

the audit engagement. 

(2) Evaluate the cooperation received by 

the external auditor during the audit 

examination, including access to all 

requested records, data and information; 

elicit the comments of management 

regarding the responsiveness of the 

external auditor to the Company’s needs; 

inquire of the external auditor whether 

there have been any disagreements with 

management which if not satisfactorily 

resolved would have caused the issue of 

a non-standard report on the Company’s 

financial statements. 

(3) review the quarterly results, year end 

financial statements and press releases 

with management prior to them being 

approved by the board of directors 

focusing particularly on: 

(a) changes in or implementation of 

major accounting policy changes; 

(b) significant and unusual events; 

and 

(c) compliance with accounting standards 

and other legal requirements. 

www.eon.com.my

eporT of The 

bOard audit 

COmmittee (cont’d.) 

(4) review any letter of resignation from 

the external auditor of the Company; 

review as to whether there is reason 

(supported by grounds) to believe that 

the Company’s external auditor is not 

suitable for reappointment; 

recommend the nomination of a person 

or persons as external auditor. 

(5) review with the Company’s management, 

internal auditor and external auditor, the 

suitability and adequacy of accounting 

policies and practices, its compliance with 

any regulatory or other external financial 

reporting controls and requirements. 

(6) review the extent of non-audit services 

provided by the external auditor and 

such other responsibilities as may be 

agreed to by the audit Committee and 

the board of directors. 

(7) review with management and the 

external auditor, upon completion of the 

audit, the financial results of the year 

prior to their release to the public. this 

review shall encompass the following: 

(a) the audit report; 

(b) the Company’s annual report to 

shareholders including the financial 

statements and supplemental 

disclosures required by generally 

accepted accounting principles and 

approved accounting standards; 

(c) the Corporate governance 

statement and internal Control 

statement in the Company’s 

annual report to shareholders; 

(d) significant related party transactions 

that may arise within the Company 

or group; 

(e) significant transactions not a 

normal part of the Company and 

its subsidiaries’ operations; 

(f) significant adjustments proposed 

by the external auditor; 

(g) changes, if any, during the year 

in the Company’s accounting 

principles or their applications 

and the level of prudence applied 

in areas requiring judgement; 



(h) the coordination of the audit 

approach between the external 

and internal auditors; and 

(i) the effectiveness of management 

information and other systems of 

control within the Company. 

(8) identify principal risks and ensure the 

implementation of appropriate systems 

to manage these risks; 

approve and adopt the recommendations 

made by the risk management 

Committee particularly in managing 

the existing risks, including new risks 

identified, action plans proposed by 

management in mitigating the risks 

and removing risks which have been 

addressed by management as presented 

in the risk management report. 

(9) review the adequacy and the integrity of 

the Company’s internal control systems 

and management information systems, 

including systems for compliance with 

applicable laws, regulations, rules, 

directives and guidelines; 

(10) review any related party transaction 

and conflict of interests situation that 

may arise within the Company or group 

including any transaction, procedure or 

course of conduct that raises questions 

of management integrity; 

(11) review the adequacy of the scope, 

functions and resources of the internal 

audit division and that it has the necessary 

authority to carry out its work; 

(12) review the internal audit programme, 

processes, the results of the internal audit 

programme, processes or investigation 

undertaken and whether or not appropriate 

action is taken on the recommendations 

of the internal audit function; 

(13) review appraisal or assessment of the 

performance of members of the internal 

audit function, approve any appointment 

or termination of senior staff members 

of the internal audit function and inform 

itself of resignations of internal audit 

staff members and provide the resigning 

staff member an opportunity to submit 

his reasons for resigning; 

(14) Consider the major findings of internal 

investigations and management’s 

responses; 

(15) discuss with the external auditor, 

the quality of the financial and 

accounting personnel, and any relevant 

recommendations, which the external 

auditor may have, including those in 

the audit Committee report. topics to 

be considered during this discussion 

include improving financial controls, the 

selection of accounting principles and 

management reporting system. 

review written responses of management 

through audit Committee report from 

the external auditor; 

(16) discuss with management, the scope 

and quality of accounting and financial 

reporting controls in effect; 

(17) inform the board of directors, through 

minutes and special presentations as 

necessary, of significant developments in 

the course of performing the above duties; 

(18) recommend to the board of directors 

any appropriate extension or changes in 

the duties of the audit Committee; and 

(19) where the audit Committee is of the 

view that a matter reported by it to 

the board of directors has not been 

satisfactorily resolved resulting in a 

breach of the bursa malaysia’s listing 

requirements, the audit Committee 

must promptly report such matter to 

bursa malaysia. 

suMMAry of ACtiVities of tHe 

AuDit CoMMittee 

the audit Committee plays the role of the 

governance body to assist the board to 

implement and support the oversight function 

in accordance with the terms of reference of 

the audit Committee. the following activities 

were carried out by the audit Committee during 

the financial year ended 31 march 2009: 

a) financial results and Corporate governance 

• R e v i e w e d t h e q u a r t e r l y 

unaudited financial results and 

announcements to bursa malaysia 

before recommending to the 

board for approval.

• R e v i e w e d t h e C o m p a n y ’s 

compliance with the listing 

requirements of bursa malaysia, 

financial reporting standards 

issued by the malaysian 

accounting standard board 

(“masb”) and other legal and 

regulatory requirements. 

• Reviewed the audited annual 

financial statements of the 

Company prior to submission to 

the board for their consideration 

and approval prior to submitting 

the results to bursa malaysia. 

• Reviewed the Corporate Governance 

statement and statement on 

internal Control pursuant to the 

listing requirements of bursa 

malaysia. 

• Reviewed the Related Party 

transactions (“rPt”) entered by 

the Company for compliance 

with bursa malaysia listing 

requirements; 

b) External audit 

• Reviewed the external auditors’ 

scope of work and audit plan 

prior to the commencement of 

the audit for the financial year. 

• Reviewed with the external 

auditors the results of audit of 

the financial statements and their 

report as well as the management 

responses. 

• Evaluated the services provided 

by the external auditors and made 

recommendation to the board for 

approval of the audit fees and 

their reappointment. 

• Met with the external auditors 

during a year without the presence 

of the management. 

c) internal audit 

• Reviewed the internal audit reports 

presented by the group internal 

audit division (giad) on findings 

and recommendation with respect 

to the adequacy and reliability of 

the internal control system of the 



Company based on improvement 

opportunities identified in the internal 

audit reports. 

• Reviewed and appraised the 

adequacy and effectiveness 

of management responses and 

action in handling and resolving 

the audit issues reported. 

• Reviewed and approved the 

annual internal audit Plan for the 

financial year 2009/10 to ensure 

adequacy of the audit scope and 

coverage over the activities of the 

Company. 

• Reviewed adequacy of resources 

of the internal audit function to 

enable effective discharge of its 

responsibilities and execution of 

the internal audit activities. 

d) risk management 

• Identified principal risks and 

ensured the implementation of 

appropriate systems to manage 

these risks; 

• Approved and adopted the 

recommendations made by the 

risk management Committee 

particularly in managing the 

existing risks, including new risks 

identified, action plans proposed 

by management in mitigating 

the risks and removing risks 

which have been addressed by 

management as presented in the 

risk management report. 

internAl AuDit funCtion 

the Company’s internal audit function is 

centrally managed by the group internal audit 

division (giad) of its holding Company, drbhiCOm 

berhad with effect from 1 april 2008 

to undertake its activities independently and 

objectively to assist the audit Committee in 

discharging its duties and responsibilities 

effectively. the head of the giad reports 

directly to the audit Committee. 

the primary responsibility of the giad is to 

undertake regular and systematic reviews of 

the system of internal control of operating 

units and functions within the Company 

and eventually enable to provide reasonable 

assurance to the audit Committee whether the 

system is adequately designed and operating 

in an effective manner. 

within giad’s staff force of twenty one 

auditors, the head of giad together with a 

team of auditors comprising one manager 

and three team members designated for EON 

audits executed the audit engagements of 

the Company based on the annual internal 

audit Plan for financial year ended 31 march 

2009. the audit engagements encompassed 

scheduled and investigative audits covering 

the management and operational controls of 

the activities undertaken by the operating 

units and functions within the Company. 

the giad completed 34 audits in the financial 

year ended 31 march 2009, comprising 

subsidiaries, divisions and branches. None of 

the components of the internal audit function 

were outsourced to external service providers. 

the costs incurred for the internal audit 

function of the Company was in the region 

of rm480,000 in respect of the financial year 

ended 31 march 2009. 

during the financial year under review, the 

results of work accomplished by giad, the 

audit issues raised and the management 

responses and action plans were presented 

to and reviewed by the audit Committee. 

the management of the operating units 

and functions audited were responsible to 

ensure the implementation of their action 

plans within the time frame specified. in this 

regard, the internal control weaknesses were 

identified and brought to the attention of the 

management, all of which have been, or are 

being addressed by the management for 

necessary corrective action and improvement 

of the internal control system of the Company. 

the giad monitored the actions taken by the 

management and reviewed and updated the 

status in the subsequent follow-up audits and 

reporting to the audit Committee. 

None of the weaknesses have resulted in any 

material losses, contingencies or uncertainties 

that would require separate disclosure in the 

Company’s annual report. 

www.eon.com.my

addiTional 

COmplianCe 

infOrmatiOn 

ThE FOllOWiNG 

iNFORMATiON 

is pROvidEd iN 

CONFORMANCE TO ThE 

lisTiNG REquiREMENTs 

OF buRsA MAlAysiA 

sECuRiTiEs bERhAd: 

1. utilisAtion of proCeeDs 

during the financial year, there was no 

corporate proposal involving fund raising. 

2. sHAre BuyBACKs 


share buyback by the Company. 

3. options, wArrAnts or 

ConVertiBle seCurities 

the Company has not issued any option, 

warrant or convertible security during 

the financial year. 

4. AMeriCAn Depository 

reCeipt (“ADr”) or GloBAl 

Depository reCeipt (GDr”) 

during the financial year, the Company 

did not sponsor any adr and gdr 

programme. 

5. VAriAtion in results 

the Company did not release or announce 

any profit estimate, forecast or projection 

during the financial year under review. 

6. profit GuArAntee 


profit guarantee issued by the Company. 

7. stAteMent on reVAluAtion 

poliCy 

the group does not have any revaluation 

policy. 

8. sAnCtions AnD/or 

penAlties 

during the financial year, there was 

no sanction and/or penalty imposed 

on the Company and its subsidiaries, 

directors or management by the relevant 

regulatory bodies. 

9. non-AuDit fees 



the amount of non-audit fees paid and payable to the external auditors and their affiliated 

companies by the Company and its subsidiaries for the financial year ended 31 march 

2009 are as follows: 

PricewaterhouseCoopers rm12,500 

PricewaterhouseCoopers taxation services sdn bhd rm114,200 

10. MAteriAl ContrACts 

there is no material contract including contract relating to loans (not being contract entered 

into in the ordinary course of business) of the Company and its subsidiaries, involving 

directors’ and major shareholders’ interests, either still subsisting at the end of the financial 

year or entered into since the end of the previous financial period. 

11. reCurrent relAteD pArty trAnsACtions of A reVenue or 

trADinG nAture 

by a resolution of the annual general meeting of the Company held on 27 august 2008, 

a mandate was granted by the shareholders for recurrent related party transactions of 

a revenue or trading nature, to be entered into during the period 28 august 2008 to 30 

september 2009 between the Company or its subsidiary companies and related parties, 

the latter being based on estimates. as required, below is a listing of the said transactions 

by related companies that are more than rm6 million as having been actually entered into 

during the financial year ended 31 march 2009:- 

transacted 

values from 

Interested directors, 1 april 2008 to 

transacting major shareholders & 31 march 2009 

parties persons connected nature of transaction rm’000 

mitsubishi major shareholder Purchase of motor 277,711 

motors mitsubishi Corporation vehicles/related 

malaysia sdn bhd kualapara (m) sdn bhd spare parts 

rin kei mei 

director 

keizo Ono 

rin Nan lun 

uni asia major shareholder insurance commission 10,684 

general - drb-hiCOm berhad and claims received 

insurance berhad - hiCOm holdings 

berhad 

- gadek (malaysia) 

berhad 

- mega Consolidated 

sdn bhd 

- Etika strategi 

sdn bhd 

- tan sri dato’ seri 

syed mokhtar shah 

bin syed Nor 

director 

datuk haji mohd 

khamil bin Jamil

sTaTemenT of 

direCtOrs’ respOnsibility fOr 

preparing the finanCial statements 

ThE diRECTORs ARE REquiREd by ThE COMpANiEs 

ACT, 1965 (“ThE ACT”) TO pREpARE FiNANCiAl 

sTATEMENTs FOR EACh FiNANCiAl yEAR ThAT GivE 

A TRuE ANd FAiR viEW OF ThE sTATE OF AFFAiRs OF 

ThE COMpANy ANd ThE GROup AT ThE ENd OF ThE 

FiNANCiAl yEAR ANd OF ThE REsulTs ANd CAsh 

FlOWs OF ThE COMpANy ANd ThE GROup FOR ThE 

FiNANCiAl yEAR. As REquiREd by ThE ACT ANd ThE 

lisTiNG REquiREMENTs OF ThE buRsA MAlAysiA 

sECuRiTiEs bERhAd, ThE FiNANCiAl sTATEMENTs 

hAvE bEEN pREpAREd iN ACCORdANCE WiTh ThE 

MAlAysiAN ACCOuNTiNG sTANdARds bOARd 

AppROvEd ACCOuNTiNG sTANdARds iN MAlAysiA 

FOR ENTiTiEs OThER ThAN pRivATE ENTiTiEs ANd 

ThE pROvisiONs OF ThE ACT. iN pREpARiNG ThE 

FiNANCiAl sTATEMENTs FOR ThE yEAR ENdEd 

31 MARCh 2009 sET OuT ON pAGEs 54 TO 97, ThE 

diRECTORs hAvE: 



• adopted appropriate accounting policies, 

consistently applied and supported by 

reasonable and prudent judgements and 

estimates; 

• ensured that all applicable accounting 

standards have been followed; and 

• prepared financial statements on the 

going concern basis as the directors 

have a reasonable expectation, having 

made enquiries that the Company and 

the group have adequate resources to 

continue in operational existence for the 

foreseeable future. 

the directors have responsibility for ensuring that 

the Company and the group keep accounting 

records that disclose with reasonable accuracy 

the financial position of the Company and the 

group that enable them to ensure that the 

financial statements comply with the act. 

the directors have overall responsibility for taking 

such steps as are reasonably open to them to 

safeguard the assets of the group and to prevent 

and detect fraud and other irregularities. 


board on 26 may 2009. 

www.eon.com.my

sTaTemenT on corporaTe 

sOCial respOnsibility 

WhilE ENsuRiNG ThE susTAiNAbiliTy 

OF OuR busiNEssEs, EON hAs AlsO 

AlWAys uphEld ThE iMpORTANCE 

OF CulTivATiNG GOOd CORpORATE 

sOCiAl REspONsibiliTy pRACTiCEs. 

WE CONTiNuE TO plAy OuR pART As 

A REspONsiblE CORpORATE CiTizEN 

iN ThE AREAs OF ThE COMMuNiTy, 

EMplOyEE sAFETy, ThE ENviRONMENT 

ANd ThE sTAKEhOldER ENGAGEMENT. 



despite the year under review’s challenging business environment, 

we continued to undertake corporate social responsibility initiatives 

that strengthened our reach to communities as well as enhanced the 

competitiveness of our business. 

eDuCAtinG CoMMunities 

in supporting the government’s initiatives in the area of road safety, august 

2008 saw EON launching an edutainment programme, namely the kids 

street smart safety Programme (“kiss”). realising that there have been 

many pedestrian-related fatalities in our country with a high number of 

such cases involving school children below the age of 16, EON introduced 

the kiss Programme to proactively raise children’s understanding of road 

safety issues in a light, fun and entertaining manner. 

the kiss Programme highlights three key messages emphasising 

road safety – that is to stay safe on foot, wheels, as well as on the 

road with the tagline “think, stop, look, listen and live”. staying 

safe on foot places an emphasis on youngsters acquiring street 

sense and playing it safe when walking or crossing the road. besides 

these three core elements, kiss also aims to educate children about 

vehicle-related elements such as the use of genuine parts to further 

ensure the safety of car passengers. through collaboration with Proton

Parts Centre (“PPC”), both EON and PPC will 

educate target audiences about the various 

parts found in a car and the importance of 

this for sustainability. 

EON has toured several schools, most of which 

are in the klang valley, to bring the kiss 

Programme closer to youngsters. we are also 

simultaneously reaching out to more youngsters 

nationwide through our “bandar EON” interactive 

online games on our website. 

enHAnCinG tHe worKplACe 

EON appreciates the contributions and support 

of our employees in relation to the growth of 

our business and the creation of a harmonious 

working environment. we are committed to 

giving all employees an equal chance when it 

comes to career opportunities and we treat all 

staff equally regardless of their religion, race, 

gender, age or nationality. in recognition of our 

employees’ commitment and their constant 

support, we continue to recognise employees 

that have been loyal to the Company for 10 

and 20 years via our long service award 



programme. the programme for the year 

under review was held throughout the nation 

to reflect EON’s appreciation and gratitude for 

its employees’ long service. 

we are committed to creating and maintaining 

a safe and healthy working environment for 

employees and all our workplaces comply 

with the requirements of isO 9001:2000. 

Continuous training and safety workshops 

ensure a high level of awareness of safety 

requirements at all levels of the organisation. 

proteCtinG tHe enVironMent 

EON is committed to bringing its resources to bear 

in creating and maintaining a better and safer 

environment. through our subsidiary, automotive 

Conversion Engineering sdn bhd (“aCE”), we 

have embarked on the “green Project” to promote 

community involvement in the way of reducing 

petrol and diesel emissions by advocating greater 

use of natural gas vehicles (“Ngv”). via aCE’s 

Ngv initiatives we are supporting both private and 

public sectors initiatives that aim to create and 

develop a green environment in malaysia. 

Conscious of global warming and climate 

change issues as a result of industrial 

activities, we ensure that all our operations are 

in compliance with environmental and legal 

requirements that uphold the preservation 

of the environment. scheduled waste 

management is one of EON’s top priorities 

and we ensure that all such waste is properly 

managed and disposed in conformance with 

isO 9001:2000 requirements. 

enGAGinG witH stAKeHolDers 

we are committed to engaging with our 

stakeholders and ensuring that their interests 

are well taken care of. we make every effort to 

provide first class services and meet customer 

satisfaction through continuous improvements 

in productivity, technology, communication, 

innovation, processes and services. Our 

continuous commitment to delivering quality 

services and products will ensure that EON 

captures higher returns which in turn will 

benefit our stakeholders in the long run. 

www.eon.com.my

Year 

2008/2009 

events 

fiesta gegar Olimpik 2008 in conjunction with hari armada tldm 2008 

at lumut Naval base, Perak. 

the third round of fiesta gegar Olimpik 

2008 at miri, sarawak. 

the launch of bandar EON-kids street smart & 

safety Program by y bhg. datuk syed hisham 

syed wazir at sk Precinct 8 Putrajaya. 



the second round of fiesta gegar Olimpik 

2008 at kemaman terengganu. 

the launch of audi a4 by deputy Prime minister of malaysia at audi hangar, glenmarie. 

majlis berbuka Puasa 2008.

audi tt won the autocar asean award for 2008 under the category of 

small luxury hatchback / Coupe. 

bandar EON fun school Program rolls out at 

sk ttdi Jaya, shah alam. 

audi won asian auto-bosch fuel Efficiency award 2008. 



mitsubishi triton lite won the auto Car asean award 2008 for third 

consecutive year. 

mitsubishi triton 3.2l won the award Nst – maybank of the year 2008. 

EON participated in sahabat alam Camp at taman wetland Putrajaya 

in collaboration with bank rakyat and utusan karya. 

www.eon.com.my


2009 Annual Report

053 Edaran OtOmObil nasiOnal bErhad (119767-X) 


Directors’ Report 054 

Statements by Directors 058 

Statutory Declaration 058 

Independent Auditors’ Report 059 

Income Statements 060 

Balance Sheets 061 

Consolidated Statements of Changes in Equity 062 

Company Statements of Changes in Equity 063 

Cash Flow Statements 064 

Notes to the Financial Statements 066 

www.eon.com.my

directors’ report 

The Directors are pleased to submit their report together with the audited financial statements of the Group and Company for the financial year 

ended 31 March 2009. 

PRINCIPAL ACTIVITIES 

The Company is principally engaged in the marketing of Proton motor vehicles and related spare parts and servicing of vehicles. 

The Group is primarily engaged in the marketing of vehicles and related spare parts. The principal activities of the subsidiaries, jointly controlled 

entities and associates are described in Notes 16, 17 and 18 to the financial statements respectively. 

There has been no significant change in the activities of the Group and Company during the financial year. 

FINANCIAL RESULTS 



GRoUP ComPANy 

Rm’000 Rm’000 

Profit attributable to equity holders 25,679 33,495 

DIVIDENDS 

The amount of dividends paid or declared by the Company since 31 March 2008 were as follows: 

Rm’000 

In respect of the financial period ended 31 March 2008 as shown 

in the Directors’ Report of that financial period: 

Final gross dividend of 13.5 sen per share, less income tax at 26%, 

paid on 30 September 2008 24,874 

In respect of the financial year ended 31 March 2009: 

Special tax exempt dividend of RM1.00 per share, paid on 25 July 2008 248,993 

Interim dividend of 8.0 sen per share, less income tax at 25%, 

paid on 25 March 2009 14,940 

288,807 

The Directors now recommend the payment of a final dividend of 2 sen per share less income tax at 25%, amounting to approximately RM3,735,000 

for the financial year ended 31 March 2009, subject to shareholders’ approval at the forthcoming Annual General Meeting of the Company. 

RESERVES AND PRoVISIoNS 

All material transfers to or from reserves and provisions during the financial year are shown in the financial statements. 

DIRECToRS 

The Directors who have held office during the period since the date of the last report are as follows: 

Y Bhg Tan Sri Marzuki bin Mohd Noor (appointed with effect from 2.6.08) 

(re-designated as Chairman with effect from 1.7.08) 

Y Bhg Tan Sri Ab. Rahman bin Omar (resigned with effect from 1.7.08) 

Y Bhg Datuk Syed Hisham bin Syed Wazir 

Y Bhg Datuk Haji Mohd Khamil bin Jamil 

Encik Nik Hamdam bin Nik Hassan (appointed with effect from 2.6.08) 

Y Bhg Dato’ Haji Mohd Redza Shah bin Abdul Wahid (resigned with effect from 3.11.08) 

Y Bhg Datuk Aziyah binti Bahauddin 

Y Bhg Tan Sri Saw Huat Lye

DIRECToRS (cont’d) 

The Directors who have held office during the period since the date of the last report are as follows: (cont’d) 

Y Bhg Datuk Ir. (Dr) Ahmad Zaidee bin Laidin (resigned with effect from 1.6.09) 

Y Bhg Dato’ Anwar bin Aji (resigned with effect from 1.6.09) 

Y Bhg Datuk Abdul Hamid bin Sawal (resigned with effect from 1.6.09) 

Mr Keizo Ono 

Mr Ooi Teik Huat (appointed with effect from 7.11.08) 

Encik Lukman bin Ibrahim (appointed with effect from 1.6.09) 

Mr Rin Nan Lun 

(Alternate Director to Mr Keizo Ono) 

DIRECToRS’ BENEFITS 

During and at the end of the financial year, no arrangements subsisted to which the Company is a party, being arrangements with the object or 

objects of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any 

other body corporate. 

Since the end of the previous financial period, no Director has received or become entitled to receive a benefit (other than the Directors’ 

remuneration as described in Note 7 to the financial statements) by reason of a contract made by the Company or a related corporation with the 

Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest except as 

disclosed in Note 33 to the financial statements. 

DIRECToRS’ INTERESTS IN SHARES 

According to the Register of Directors’ Shareholdings, the interests of Directors who held office at the end of the financial year in shares in the 

Company and its related corporations are as follows: 



Number of ordinary shares of Rm1 each 

As at As at 

1.4.2008 Acquired Disposed 31.3.2009 

Shares in the Company held by: 

Mr Rin Nan Lun 

- indirect* 30,153,400 - - 30,153,400 

Shares in Etika Strategi Sdn Bhd# 

held by: 

Y Bhg Datuk Haji Mohd Khamil bin Jamil 30,000 - - 30,000 

Shares in DRB-HICOM Berhad + 

held by: 

Y Bhg Datuk Syed Hisham bin Syed Wazir 26,500 - - 26,500 

* Indirect interest represents shares held by companies in which the Director is deemed to have an interest 

# Ultimate holding company with effect from 22 October 2008 

+ Penultimate holding company 

Other than those disclosed above, according to the Register of Directors’ Shareholdings, the other Directors in office at the end of the financial year, 

did not hold any interest in shares in the Company or its related corporations during the financial year. 

STATUToRy INFoRmATIoN oN THE FINANCIAL STATEmENTS 

Before the income statements and balance sheets were made out, the Directors took reasonable steps: 

(a) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and 

satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and 

(b) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business their values as shown 

in the accounting records of the Group and Company had been written down to an amount which they might be expected so to realise. 

www.eon.com.my

directors’ report (cont’d.) 

STATUToRy INFoRmATIoN oN THE FINANCIAL STATEmENTS (cont’d) 

At the date of this report, the Directors are not aware of any circumstances: 

(a) which would render the amounts written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of 

the Group and Company inadequate to any substantial extent; or 

(b) which would render the values attributed to current assets in the financial statements of the Group and Company misleading; or 

(c) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and Company misleading 

or inappropriate. 

No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the 

financial year which, in the opinion of the Directors, will or may affect the ability of the Group or Company to meet their obligations as and when 

they fall due. 

At the date of this report, there does not exist: 

(a) any charge on the assets of the Group or Company which has arisen since the end of the financial year which secures the liability of any 

other person; or 

(b) any contingent liability of the Group or Company which has arisen since the end of the financial year. 

At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements which 

would render any amount stated in the financial statements misleading. 

In the opinion of the Directors: 

(a) the results of the Group and Company’s operations during the financial year were not substantially affected by any item, transaction or event 

of a material and unusual nature; and 

(b) except as disclosed under ‘event after the balance sheet date’, there has not arisen in the interval between the end of the financial year 

and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the 

operations of the Group or Company for the financial year in which this report is made. 

SIGNIFICANT EVENTS DURING THE FINANCIAL yEAR 

Significant events during the financial year are as follows: 

(i) The Group exited from Hyundai dealership with effect from 1 July 2008. 

(ii) The dealership agreement with Suzuki Malaysia Automobile Sdn Bhd expired on 28 February 2009 and the Group has surrendered the 

dealership with effect from 1 April 2009. 

(iii) On 30 March 2009, the Group entered into a voluntary termination agreement with Volkswagon Group Malaysia Sdn Bhd to early terminate 

the dealership with effect from 31 March 2009. 

EVENT AFTER THE BALANCE SHEET DATE 

On 8 May 2009, the Company entered into a Master Dealership Agreement (“Agreement”) with Proton Edar Sdn Bhd (“EDAR”) which includes 

amongst others, the rationalisation of the sales and service centres between the Company and EDAR with the purpose of improving, strengthening 

and developing the dealer networks (“Proposed Rationalisation”). 

Amongst the terms of the Agreement, all sales and service dealers currently under the Company shall migrate to EDAR not later than 31 December 

2009. In addition, the Company shall reduce its sales branches from the existing forty (40) to thirty two (32) on or before 31 December 2010. 

It is expected that arising from the migration of sales and service dealers to EDAR, the Company will record lower earnings for the forthcoming 

financial year. However, it is expected to be mitigated by the cost savings from the Proposed Rationalisation as well as other cost reduction initiatives 

to be carried out by the Company. 


2009 Annual Report

EVENT AFTER THE BALANCE SHEET DATE (cont’d) 

The Agreement is subject to the execution of a Sales Operations Agreement and a Service Operations Agreement on or before 30 June 2009. 

The said subsequent event does not have any material impact on the financial statements for the financial year ended 31 March 2009. 

ULTImATE HoLDING ComPANy 

The Directors regard Etika Strategi Sdn Bhd, a company incorporated in Malaysia, as the ultimate holding company. 

AUDIToRS 

The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office. 

Signed on behalf of the Board of Directors in accordance with their resolution dated 24 June 2009. 

TAN SRI mARZUKI BIN moHD NooR DATUK SyED HISHAm BIN SyED WAZIR 

CHAIRMAN MANAGING DIRECTOR 



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statement by directors 

PURSUANT TO SECTION 169(15) OF THE COMPANIES’ ACT, 1965 

We, Tan Sri Marzuki bin Mohd Noor and Datuk Syed Hisham bin Syed Wazir, two of the Directors of Edaran Otomobil Nasional Berhad, state that, 

in the opinion of the Directors, the financial statements set out on pages 60 to 97 are drawn up so as to give a true and fair view of the state 

of affairs of the Group and Company as at 31 March 2009 and of the results and cash flows of the Group and Company for the financial year 

ended on that date and in accordance with the provisions of the Companies’ Act, 1965 and MASB Approved Accounting Standards in Malaysia for 

Entities other than Private Entities. 

Signed on behalf of the Board of Directors in accordance with their resolution dated 24 June 2009. 

TAN SRI mARZUKI BIN moHD NooR DATUK SyED HISHAm BIN SyED WAZIR 

CHAIRMAN MANAGING DIRECTOR 

statUtory decLaration 

PURSUANT TO SECTION 169(16) OF THE COMPANIES’ ACT, 1965 

I, Yip Kok Hing, the officer primarily responsible for the financial management of Edaran Otomobil Nasional Berhad, do solemnly and sincerely declare 

that the financial statements set out on pages 60 to 97 are, in my opinion, correct and I make this solemn declaration conscientiously believing 

the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960. 

yIP KoK HING 

Subscribed and solemnly declared by the above named Yip Kok Hing at Kuala Lumpur in Malaysia on 24 June 2009, before me. 

COMMISSIONER FOR OATHS 


2009 Annual Report

independent aUditors’ report 

TO THE MEMBERS OF EDARAN OTOMOBIL NASIONAL BERHAD 

REPoRT oN THE FINANCIAL STATEmENTS 

We have audited the financial statements of Edaran Otomobil Nasional Berhad, which comprise the balance sheets as at 31 March 2009 of the 

Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company 

for the financial year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 60 to 97. 

Directors’ Responsibility for the Financial Statements 

The Directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with MASB Approved 

Accounting Standards in Malaysia for Entities other than Private Entities and the Companies’ Act, 1965. This responsibility includes: designing, implementing 

and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether 

due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved 

standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain 

reasonable assurance whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures 

selected depend on our judgment, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or 

error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial 

statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on 

the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the 

reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 

opinion 

In our opinion, the financial statements have been properly drawn up in accordance with MASB Approved Accounting Standards in Malaysia for 

Entities other than Private Entities and the Companies’ Act, 1965 so as to give a true and fair view of the financial position of the Group and of 

the Company as of 31 March 2009 and of their financial performance and cash flows for the financial year then ended. 

REPoRT oN oTHER LEGAL AND REGULAToRy REQUIREmENTS 

In accordance with the requirements of the Companies’ Act, 1965 in Malaysia, we also report the following: 

(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries have 

been properly kept in accordance with the provisions of the Act. 

(b) We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s financial statements are in form and 

content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory 

information and explanations required by us for those purposes. 

(c) Our audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) 

of the Act. 

oTHER mATTERS 

This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies’ Act, 1965 in Malaysia 

and for no other purpose. We do not assume responsibility to any other person for the content of this report. 

PRICEWATERHoUSECooPERS moHAmmAD FAIZ BIN moHAmmAD AZmI 

(No. AF: 1146) (No. 2025/03/10 (J)) 

Chartered Accountants Chartered Accountant 

Kuala Lumpur 

24 June 2009 



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income statements 

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2009 



GRoUP ComPANy 

year 15 months year 15 months 

ended ended ended ended 

Note 31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Revenue 5 2,419,872 2,322,322 2,070,653 1,909,720 

Cost of sales (2,289,926) (2,151,795) (1,967,569) (1,769,522) 

Gross profit 129,946 170,527 103,084 140,198 

Other operating income 11,690 63,015 48,267 65,831 

Selling and distribution expenses (58,550) (73,332) (46,628) (61,346) 

Administrative expenses (55,231) (78,442) (53,895) (71,557) 

Other operating expenses (4,570) (2,849) (5,480) (2,597) 

Profit from operations 6 23,285 78,919 45,348 70,529 

Finance cost 8 (139) (7) (139) (7) 

Share of results of jointly controlled entities 23,912 35,721 - - 

Share of results of associates (15,130) 1,494 - - 

Profit before tax 31,928 116,127 45,209 70,522 

Tax 9 (6,249) (10,763) (11,714) (16,426) 

Profit for the financial year/period 25,679 105,364 33,495 54,096 

Profit attributable to equity holders 25,679 105,364 33,495 54,096 

Gross dividends per share 110.0 sen 13.5 sen 110.0 sen 13.5 sen 

Earnings per share 

- basic 11 10.3 sen 33.9 sen 

The notes on pages 66 to 97 form an integral part of these financial statements.

aLance sHeets 

AS AT 31 MARCH 2009 



GRoUP ComPANy 

Note 31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

NON-CURRENT ASSETS 

Property, plant and equipment 12 174,192 180,657 19,873 22,278 

Prepaid lease rental 13 10,881 11,167 1,561 1,580 

Investment properties 14 18,530 18,530 - - 

Other investments 15 4,389 5,075 4,088 4,774 

Subsidiaries 16 - - 52,749 52,849 

Jointly controlled entities 17 102,251 105,435 35,206 35,206 

Associates 18 41,047 50,368 27,208 36,312 

Deferred tax assets 19 5,400 3,521 3,371 2,609 

356,690 374,753 144,056 155,608 

CURRENT ASSETS 

Inventories 20 224,375 291,367 193,484 262,445 

Receivables 21 112,779 134,913 88,072 108,625 

Tax recoverable 197 4,015 - 4,015 

Amounts due from penultimate holding company 22 2 - - - 

Amounts due from immediate holding company 22 3 - - - 

Amounts due from subsidiaries 23 - - 124,490 115,999 

Amounts due from jointly controlled entities 23 2,155 1,161 1,031 322 

Amounts due from an associate 23 5 8 5 8 

Amounts due from other related companies 24 2,038 18 1,943 18 

Cash and bank balances and deposits with financial institutions 25 119,899 383,519 107,545 372,770 

461,453 815,001 516,570 864,202 

CURRENT LIABILITIES 

Payables 27 137,269 266,252 124,816 248,417 

Amounts due to subsidiaries 23 - - 1,248 1,183 

Amounts due to jointly controlled entities 23 24,216 22,270 24,216 22,270 

Amounts due to other related companies 24 504 - - - 

Taxation 778 6,530 570 1,835 

Provisions for liabilities and charges 28 2,858 4,995 2,018 4,161 

Bank borrowings (unsecured) 29 20,000 - 20,000 - 

185,625 300,047 172,868 277,866 

NET CURRENT ASSETS 

NON-CURRENT LIABILITIES 

275,828 514,954 343,702 586,336 

Deferred tax liabilities 19 6,102 2,091 - - 

Provision for retirement benefits 30 7,996 7,845 7,567 7,427 

Lease payables 31 986 - 986 - 

15,084 9,936 8,553 7,427 

617,434 879,771 479,205 734,517 

SHARE CAPITAL 32 248,993 248,993 248,993 248,993 

RESERVES 368,441 630,778 230,212 485,524 

TOTAL EQUITY 617,434 879,771 479,205 734,517 

The notes on pages 66 to 97 form an integral part of these financial statements. 

www.eon.com.my

consoLidated statement oF cHanGes in eQUity 


Issued and 

fully paid 

ordinary 

shares 



Nominal Currency 

value of Share translation Revaluation Retained 

Note Rm1 each premium reserve reserve earnings Total 

Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 

At 1 April 2008 248,993 8,367 2,460 1,380 618,571 879,771 

Translation of a 

foreign associate - - 41 - - 41 

Share of associates’ reserves - - 750 - - 750 

Profit not recognised 

in income statement - - 791 - - 791 

Profit for the financial year - - - - 25,679 25,679 

Total income and expenses 

for the financial year - - 791 - 25,679 26,470 

Dividends 10 - - - - (288,807) (288,807) 

At 31 March 2009 248,993 8,367 3,251 1,380 355,443 617,434 

Issued and 

fully paid 

ordinary 

shares 

Nominal Currency 

value of Share translation Revaluation Retained 

Note Rm1 each premium reserve reserve earnings Total 

Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 

At 1 January 2007 248,993 8,367 2,012 - 762,225 1,021,597 

Translation of a 

foreign associate - - 33 - - 33 

Share of associates’ reserves - - 415 - - 415 

Revaluation surplus - - - 1,380 - 1,380 

Profit not recognised 

in income statement - - 448 1,380 - 1,828 

Profit for the financial period - - - - 105,364 105,364 

Total income and expenses 

for the financial period - - 448 1,380 105,364 107,192 

Dividends 10 - - - - (249,018) (249,018) 

At 31 March 2008 248,993 8,367 2,460 1,380 618,571 879,771 

The notes on pages 66 to 97 form an integral part of these financial statements.

company statement oF cHanGes in eQUity 




Issued and 

fully paid 

ordinary Nonshares 

distributable Distributable 

Nominal 

value of Share Retained 

Note Rm1 each premium earnings Total 

Rm’000 Rm’000 Rm’000 Rm’000 

At 1 April 2008 248,993 8,367 477,157 734,517 

Profit for the financial year - - 33,495 33,495 

Dividends 10 - - (288,807) (288,807) 

At 31 March 2009 248,993 8,367 221,845 479,205 

At 1 January 2007 248,993 8,367 672,079 929,439 

Profit for the financial period - - 54,096 54,096 

Dividends 10 - - (249,018) (249,018) 

At 31 March 2008 248,993 8,367 477,157 734,517 

Retained earnings 

Under the single-tier system which came into effect from year of assessment 2008, companies are not required to have tax credits under Section 108 

of the Income Tax Act, 1967 for dividend payment purposes. Dividends paid under this system are tax exempted in the hand of shareholders. 

Companies with Section 108 credits as at 31 December 2007, may continue to frank dividends until the Section 108 credits are exhausted or 31 

December 2013, whichever is earlier, unless they opt to disregard the Section 108 credits to pay single–tier dividends under the special transitional 

provisions of the Finance Act 2008. 

As at 31 March 2009, the Company has sufficient tax credits under Section 108 of the Income Tax Act, 1967 and tax exempt income under Section 

12 of the Income Tax (Amendment) Act, 1999 to frank all (2008: all) of its retained earnings as dividends. 


www.eon.com.my

casH FLoW statements 




GRoUP ComPANy 



Note 31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

CASH FLOWS FROM OPERATING ACTIVITIES 

Profit for the financial year/period 25,679 105,364 33,495 54,096 

Adjustments for investing and financing items 

and non-cash items: 

Tax 6,249 10,763 11,714 16,426 

Share of results of jointly controlled entities (23,912) (35,721) - - 

Share of results of associates 15,130 (1,494) - - 

Depreciation of property, plant and equipment 12,249 18,540 7,515 10,788 

Amortisation of prepaid lease rental 286 545 19 23 

Property, plant and equipment written off 67 2,273 56 282 

Net inventory written down/(back) 1,287 (6,902) 2,383 - 

Warranty claims written off 1,903 2,545 1,903 2,545 

Provision for retirement benefits 253 1,180 242 1,120 

Provision for liabilities and charges (net of write-back) 3,314 (149) 2,047 (945) 

Impairment loss on property, plant and equipment - 2,282 - - 

Impairment loss on prepaid lease rental - 108 - - 

Allowance/(write back) for impairment of investment in: 

- a subsidiary - - 100 - 

- an associate - (8,225) 16,312 (7,496) 

Allowance/(write back) for doubtful amounts due 

from subsidiaries - - (14,151) 449 

Allowance for doubtful debts 30 155 - 59 

Bad debts written off 39 - 39 - 

Loss on liquidation of an associate 82 - 9 - 

Net gain on sale of property, plant and equipment (240) (34,331) (273) (918) 

Unrealised loss on foreign exchange 3 - - - 

Interest expense 139 7 139 7 

Interest income (5,571) (14,939) (5,622) (17,711) 

Dividend income (27) (41) (36,407) (34,908) 

Operating profit before working capital changes 36,960 41,960 19,520 23,817 

Decrease/(Increase) in inventories 66,003 27,191 66,578 (41,639) 

Decrease in receivables 19,664 48,483 18,102 19,168 

Utilisation of provision for liabilities and charges (5,451) (5,593) (4,190) (5,441) 

(Decrease)/Increase in payables (129,142) 192,286 (123,757) 192,580 

Decrease in amount due from subsidiaries - - 65 174 

Utilisation of retirement benefits (102) (82) (102) (82) 

Decrease in amount due to jointly controlled entities/ 

associate/related companies (566) (4,590) (685) (3,255) 

Cash (used in)/generated from operations (12,634) 299,655 (24,469) 185,322 

Interest received 6,069 14,684 6,131 17,455 

Interest paid (95) (7) (95) (7) 

Income tax paid, net of refund (6,045) (3,148) (2,255) - 

Net cash flow (used in)/from operating activities (12,705) 311,184 (20,688) 202,770



GRoUP ComPANy 



Note 31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

CASH FLOWS FROM INVESTING ACTIVITIES 

Dividends received from quoted investment in Malaysia 21 30 21 30 

Dividends received from jointly controlled entities 26,798 23,441 26,798 23,441 

Dividends received from associates 2,117 5,425 2,117 5,425 

Proceeds from sale of property, plant and equipment 504 70,357 452 1,906 

Purchase of property, plant and equipment (4,284) (6,685) (3,514) (6,335) 

Additional investment in an associate (7,733) - (7,733) - 

Proceeds from liquidation of an associate 516 - 516 - 

Proceeds from redemption of other investments 686 761 686 761 

Repayment from subsidiaries - - 5,660 177,622 

Net cash flow from investing activities 18,625 93,329 25,003 202,850 

CASH FLOWS FROM FINANCING ACTIVITIES 

Proceeds from borrowings 20,000 - 20,000 - 

Repayment of finance lease (733) (945) (733) (945) 

Dividends paid (288,807) (249,018) (288,807) (249,018) 

Net cash flow used in financing activities (269,540) (249,963) (269,540) (249,963) 

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS 

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE 

(263,620) 154,550 (265,225) 155,657 

FINANCIAL YEAR/PERIOD 383,519 228,969 372,770 217,113 

CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL 

YEAR/PERIOD 25 119,899 383,519 107,545 372,770 

Property, plant and equipment purchased during the financial year/period are acquired by the following means: 

GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Lease arrangement 1,831 - 1,831 - 

Cash 4,284 6,685 3,514 6,335 


6,115 6,685 5,345 6,335 

www.eon.com.my

notes to tHe FinanciaL statements 

31 MARCH 2009 

1 GENERAL INFoRmATIoN 

The Company is principally engaged in the marketing of Proton motor vehicles and related spare parts and servicing of vehicles. 

The Group is primarily engaged in the marketing of vehicles and related spare parts. The principal activities of the subsidiaries, jointly 

controlled entities and associates are described in Notes 16, 17 and 18 to the financial statements respectively. 

The Company is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Board of Bursa Malaysia 

Securities Berhad. 

The address of the registered office of the Company is as follows: 

Level 5, Wisma DRB-HICOM 

No. 2, Jalan Usahawan U 1/8 

Seksyen U1 

40150 Shah Alam 

Selangor Darul Ehsan 

The principal place of business of the Company is as follows: 

EON Head Office Complex 

No. 2, Persiaran Kerjaya 

Taman Perindustrian Glenmarie 

Seksyen U1 

40150 Shah Alam 


As at 31 March 2009, all monetary assets and liabilities of the Group and Company are denominated in Ringgit Malaysia, unless otherwise stated. 

The financial statements have been approved for issue in accordance with a resolution of the Board of Directors dated 24 June 2009. 

2 SUmmARy oF SIGNIFICANT ACCoUNTING PoLICIES 

Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items that are considered material in relation 

to the financial statements. These policies have been consistently applied to all the financial year/period presented, unless otherwise stated. 

(a) Basis of preparation 

The financial statements of the Group and Company have been prepared in accordance with the provisions of the Companies’ Act, 1965 

and Financial Reporting Standards, the MASB Approved Accounting Standards in Malaysia for Entities other than Private Entities. 

The financial statements have been prepared under the historical cost convention except as disclosed in the summary of significant 

accounting policies. 

The preparation of financial statements in conformity with the provisions of the Companies’ Act, 1965 and Financial Reporting Standards requires 

the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of 

contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reported 

period. It also requires the Directors to exercise their judgment in the process of applying the Group’s accounting policies. Although these estimates 

and judgment are based on the Directors’ best knowledge of current events and actions, actual results could differ from these estimates. 

The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial 

statements are disclosed in Note 4 to the financial statements. 

The accounting policies and methods of computation adopted during the financial year are consistent with those adopted for the audited 

financial statements for the financial period ended 31 March 2008 except for the adoption of the following new and revised Financial 

Reporting Standards by the Group beginning 1 April 2008: 

Standards, amendments to published standards and interpretations that are applicable to the Group and are effective 

• FRS 107 Cash Flow Statements 

• FRS 118 Revenue 

• FRS 134 Interim Financial Reporting 

• FRS 137 Provisions, Contingent Liabilities and Contingent Assets 

• IC Interpretation 1 Changes in Existing Decommissioning Restoration and Similar Liabilities 


2009 Annual Report

2 SUmmARy oF SIGNIFICANT ACCoUNTING PoLICIES (cont’d) 

(a) Basis of preparation (cont’d) 

Standards, amendments to published standards and interpretations that are applicable to the Group and are effective (cont’d) 

The adoption of the new and revised Financial Reporting Standards did not have a significant financial impact on the financial 

statements of the Group and Company and did not result in substantial changes to the Group’s accounting policies. 

Standards, amendments to published standards and interpretations to existing standards that are effective but not relevant to the Group 

• FRS 111 Construction Contracts (effective for accounting periods beginning on or after 1 July 2007). This revised standard does 

not have significant changes compared to the original standard. FRS 111 is not relevant to the Group and Company’s operations 

as the Group and Company do not carry out construction business. 

• FRS 112 Income Taxes (effective for accounting periods beginning on or after 1 July 2007). This revised standard removes the 

requirement that prohibit recognition of deferred tax on unutilised reinvestment allowances or other allowances in excess of capital 

allowances. FRS 112 is not relevant to the Group and Company’s operations as the Group and Company do not have reinvestment 

allowances or other allowances in excess of capital allowances. 

• FRS 120 Accounting for Government Grants and Disclosure of Government Assistance (effective for accounting periods beginning 

on or after 1 July 2007). This revised standard allows the alternative treatment of recording non-monetary government grant at 

nominal amount on initial recognition. FRS 120 is not relevant to the Group and Company’s operations as the Group and Company 

do not have government grants or assistance. 

• Amendment to FRS 121 The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation (effective for 

accounting periods beginning on or after 1 July 2007). This amendment requires exchange differences on monetary items that 

form part of the net investment in a foreign operation to be recognised in equity instead of in profit or loss regardless of the 

currency in which these items are denominated in. FRS 121 is not relevant to the Group and Company’s operations as the Group 

and Company do not carry out foreign operations. 

• IC Interpretation 2 Members’ Shares in Co-operative Entities and Similar Instruments (effective for accounting periods beginning 

on or after 1 July 2007). This interpretation deals with liability or equity classification of financial instruments which give the 

holder the right to request redemption, but subject to limits on whether it will be redeemed. IC 2 is not relevant to the Group 

and Company’s operations as the Group and Company do not have co-operative entities and related instruments. 

• IC Interpretation 5 Rights to Interests arising from Decommission, Restoration and Environmental Rehabilitation Funds (effective for 

accounting periods beginning on or after 1 July 2007). This interpretation deals with accounting by a contributor for its interests 

arising from decommissioning funds. IC 5 is not relevant to the Group and Company’s operations as the Group and Company do 

not have rehabilitation funds. 

• IC Interpretation 6 Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment (effective for 

accounting periods beginning on or after 1 July 2007). This interpretation provides guidance on the recognition, in the financial statements of 

the producers of liabilities for waste management under the European Union Directive in respect of sales of electrical household equipment. IC 

6 is not relevant to the Group and Company’s operations as the Group and Company are not involved in waste management operations. 

• IC Interpretation 7 Applying the Restatement Approach under FRS 129 Financial Reporting in Hyperinflationary Economies (effective 

for accounting periods beginning on or after 1 July 2007). This interpretation provides guidance on how to apply the requirements 

of FRS 129 in a reporting period in which an entity identifies the existence of hyperinflationary in the economy of its functional 

currency, when that economy was not hyperinflationary in the prior period. IC 7 is not relevant to the Group and Company’s 

operations as the Group and Company do not operate in a hyperinflationary economy. 

• IC Interpretation 8 Scope of FRS 2 (effective for accounting periods beginning on or after 1 July 2007). This interpretation clarifies 

that FRS 2 Share-based Payment applies even in the absence of specifically identifiable goods and services. IC 8 is not relevant 

to the Group and Company’s operations as the Group and Company do not have share-based payment scheme. 

Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group but not yet 

effective and have not been early adopted 

• FRS 7 Financial Instruments: Disclosures (effective for annual period beginning on or after 1 January 2010). This standard requires 

disclosures of the qualitative and quantitative information about exposure to risks arising from financial instruments, specified 

minimum disclosures about credit risks, liquidity risks and market risks. The Group and Company will apply this standard when 

effective. The Group and Company will apply the transitional provision in FRS 7 which exempts entities from disclosing the 

possible impact arising from the initial application of this standard on the financial statements of the Group and Company. 



www.eon.com.my

notes to tHe FinanciaL statements (cont’d.) 

31 MARCH 2009 


(a) Basis of preparation (cont’d) 

Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group but not yet 

effective and have not been early adopted (cont’d) 

• FRS 8 Operating Segments (effective for annual period beginning on or after 1 July 2009). FRS 8 replaces FRS114 2004 Segment 

Reporting. The new standard requires a ‘management approach’, under which segment information is presented on the same 

basis as that used for internal reporting purposes. The Group and Company will apply this standard when effective. 

• FRS 139 Financial Instruments: Recognition and Measurement (effective for annual period beginning 1 January 2010). This new 

standard establishes principles for recognising and measuring financial assets, financial liabilities and some contracts to buy and sell 

non-financial items. Hedge accounting is permitted only under strict circumstances. The Group and Company will apply this standard 

when effective. The Group and Company has applied the transitional provision in FRS 139 which exempts entities from disclosing 

the possible impact arising from the initial application of this standard on the financial statements of the Group and Company. 

• IC Interpretation 10 Interim Financial Reporting and Impairment (effective for annual period beginning on or after 1 January 2010). 

IC 10 prohibits the impairment losses recognised in an interim period on goodwill and investments in equity instruments and 

in financial assets carried at cost to be reversed at a subsequent balance sheet date. The Group and Company will apply this 

standard when effective. 

Standards, amendments to published standards and interpretations to existing standards that are not yet effective and are not relevant 

to the Group 

• FRS 4 Insurance Contracts (effective for accounting periods beginning on or after 1 January 2010) is not relevant to the Group 

and Company’s operations as the Group and Company do not carry out insurance business. 

• IC Interpretation 9 Reassessment of Embedded Derivatives (effective for annual period beginning on or after 1 January 2010). IC 

9 requires an entity to assess whether an embedded derivative is required to be separated from the host contract and accounted 

for as a derivative when the entity first becomes a party to the contract. Subsequent reassessment is prohibited unless there 

is a change in the terms of the contract that significantly modifies the cash flows that otherwise would be required under the 

contract, in which case reassessment is required. The Group and Company do not have embedded derivatives. 

(b) Basis of consolidation 

The consolidated financial statements include the financial statements of the Company and all its subsidiaries made up to the end of the 

period. Subsidiaries are those companies in which the Group has power to exercise control over the financial and operating policies so 

as to obtain benefits from their activities. When assessing whether the Group has control over another entity, the existence and effect 

of any potential voting rights that are currently exercisable or convertible are also considered. 

Subsidiaries are consolidated using the acquisition method of accounting. Under the acquisition method of accounting, the results of 

subsidiaries acquired or disposed during the period are included in the consolidated income statement from the date on which control is 

transferred to the Group and are no longer consolidated from the date that control ceases. At the date of acquisition, the fair values of 

the subsidiaries’ identifiable net assets (including contingent liabilities) are determined and these values are reflected in the consolidated 

financial statements. The excess of the cost of acquisition over the fair value of the Group’s share of the subsidiaries’ identifiable net 

assets at the date of acquisition is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the 

subsidiaries acquired, the difference is recognised directly in the income statement. 

All intercompany transactions, balances and unrealised profits or losses on transactions between group companies are eliminated on 

consolidation and the consolidated financial statements reflect external transactions only. Unrealised losses are not eliminated if the 

costs cannot be recovered. 

Minority interest, where applicable is measured at the minorities’ share of the post acquisition fair values of the identifiable assets and 

liabilities of the acquiree. 

Where more than one exchange transaction is involved, any adjustment to the fair values of the subsidiary’s identifiable assets, liabilities 

and contingent liabilities relating to previously held interests of the Group is accounted for as a revaluation. 


2009 Annual Report


(b) Basis of consolidation (cont’d) 

Intragroup transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are 

also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed 

where necessary to ensure consistency with the policies adopted by the Group. 

The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group’s share of its net assets 

as at date of disposal, including the cumulative amount of any exchange differences that relate to the subsidiary, and is recognised in 

the consolidated income statement. 

(c) Goodwill 

Goodwill represents the excess of the cost of acquisition of subsidiaries, jointly controlled entities and associates over the fair value of 

the Group’s share of their identifiable net assets at the date of acquisition. Goodwill arising from acquisition of subsidiaries is included 

in the balance sheet as intangible assets. 

Goodwill is tested for impairment annually and carried at cost less accumulated impairment losses. Impairment losses on goodwill are 

not reserved. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to entity sold. 

Goodwill arising from acquisition of jointly controlled entities and associates is included in investments in jointly controlled entities and 

associates respectively. Such goodwill is tested for impairment as part of the overall balance. 

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating 

units or groups of cash-generating units that are expected to benefit from the synergies of the business combination in which the 

goodwill arose. See accounting policy Note 2(l) on impairment of assets. 

(d) Property, plant and equipment and depreciation 

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure that 

is directly attributable to the acquisition of the items. 

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable 

that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The 

carrying amount of the replaced parts is derecognised. All other repairs and maintenance are charged to the income statement during 

the period in which they are incurred. 

Freehold land is not depreciated as it has infinite life. Other property, plant and equipment are depreciated to their residual values on 

a straight line basis over their estimated useful lives. The estimated useful lives are as follows: 

Buildings and renovation 

Buildings 50 years or over the lease period, whichever is shorter 

Renovation 3 – 5 years 

Machinery, equipment and vehicles 

Plant and machinery 5 years 

Furniture, fixtures, fittings and office equipment 3 – 7 years 

Motor vehicles 5 years 

Depreciation on assets under construction commences when the assets are ready for their intended use. 

At each balance sheet date, the Group reviews the assets’ useful lives and residual values and adjustments wherever appropriate, are 

made. In addition, the Group assesses whether there is any indication of impairment. If such indications exist, an analysis is performed 

to assess whether the carrying amount of the property, plant and equipment is fully recoverable. A write down is made if the carrying 

amount exceeds the recoverable amount. 

Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in profit/(loss) on operations. 



www.eon.com.my


31 MARCH 2009 


(e) Prepaid lease rental 

Leasehold land that normally has a finite economic life and where title is not expected to pass to the lessee by the end of the lease 

term is treated as an operating lease. The payment made on entering into or acquiring a leasehold land is accounted as prepaid lease 

rental that are amortised over the lease term in accordance with the pattern of benefits provided. 

(f) Leases 

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating 

lease. Payments made under operating lease (net of any incentives received from the lessor) are charged to the income statement on 

a straight-line basis over the period of the lease. 

(g) Investment properties 

Investment properties, comprising principally land and office buildings, are held for long term rental yields or long term capital 

appreciation, or both, and are not occupied by the Group. 

Investment properties are stated at fair value, representing open-market value determined annually by external valuers. Fair value is 

based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. If this 

information is not available, the Group uses alternative valuation method such as recent prices on less active markets or discounted 

cash flow projections. Changes in the fair values are recorded in the income statement as part of other income. 

On disposal of an investment property, or when it is permanently withdrawn from use and no future economic benefits are expected 

from its disposal, it shall be derecognised. The difference between the net disposal proceeds and the carrying amount is recognised in 

profit or loss in the period of the retirement or disposal. 

(h) Cash and cash equivalents 

Cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short term, highly liquid investments with 

original maturities of three months or less, and bank overdraft. 

(i) Jointly controlled entities 

A jointly controlled entity is a corporation, partnership or other entity in which there is a contractually agreed sharing of control by the 

Group with one or more parties over the strategic financial and operating decisions relating to the entity require unanimous consent of 

the parties sharing control. 

Jointly controlled entities are accounted for using the equity method of accounting. 

The Group recognises the portion of gains or losses on the sale of assets by the Group to the joint venture that is attributable to the 

other venturers. The Group does not recognise its share of profits or losses from the joint venture that result from the purchase of assets 

by the Group from the joint venture until it resells the assets to an independent party. However, a loss on the transaction is recognised 

immediately if the loss provides evidence of a reduction in the net realisable value of current assets or an impairment loss. 

Unrealised gains on transactions between the Group and its jointly controlled entities are eliminated to the extent of the Group’s interest 

in the jointly controlled entities. Unrealised losses are also eliminated unless the transaction provides evidence on impairment of the 

asset transferred. Where necessary, in applying the equity method, adjustments are made to the financial statements of the jointly 

controlled entities to ensure consistency of accounting policies with those of the Group. 

(j) Associates 

Associates are those corporations, partnerships or other entities in which the Group exercises significant influence, but which it does 

not control, generally accompanying a shareholding of between 20% and 50% of the voting rights. Significant influence is the power to 

participate in the financial and operating policy decisions of the associates but not the power to exercise control over those policies. 

Associates are accounted for using the equity method of accounting. The Group’s investment in associates includes goodwill identified 

on acquisition, net of any accumulated impairment loss. 

The Group’s share of its associates’ post-acquisition profits or losses is recognised in the income statement, and its share of postacquisition 

movements in reserves is recognised in reserves. The cumulative post-acquisition movements are adjusted against the 

carrying amount of the investment. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, 

including any other unsecured receivables, the Group’s interest is reduced to nil and recognition of further losses is discontinued except 

to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. 


2009 Annual Report


(j) Associates (cont’d) 

Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised 

losses are also eliminated unless the transaction provides evidence on impairment of the asset transferred. Where necessary, in applying the equity 

method, adjustments are made to the financial statements of associates to ensure consistency of accounting policies with those of the Group. 

(k) Investments 

Investments in subsidiaries, associates and other long term investments are stated at cost. Where an indication of impairment exists, 

the carrying amount is assessed and written down immediately to its recoverable amount. 

Profit and loss arising on sale of investments are credited or charged to the income statement. 

(l) Impairment of assets 

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to 

amortisation are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not 

be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. 

The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, 

assets are grouped at the lowest levels for which there is separately identifiable cash flows (cash generating units). Non-financial assets other 

than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. 

The impairment loss is charged to the income statement in the period in which the impairment is identified. Impairment losses on goodwill 

are not reversed. In respect of other assets, any subsequent increase in recoverable amount is recognised in the income statement. 

(m) Inventories 

Inventories are stated at the lower of cost and net realisable value. Cost of vehicles and accessories are stated at purchase cost 

determined on the first-in, first-out basis. Cost comprises where appropriate, materials, labour, the appropriate proportion of overhead 

costs. Cost of spare parts is determined on the weighted average basis. Net realisable value is the estimated selling price in the ordinary 

course of business, less the costs of completion and selling expenses. 

(n) Dividends 

Interim dividends are recognised as liabilities when declared before the balance sheet date. Final dividends are accounted for when it 

has been approved by the Company’s shareholders. 

(o) Non-current assets classified as assets held for sale 

Non-current assets are classified as assets held for sale and stated at the lower of their carrying amount and fair value less costs to 

sell if their carrying amount is recovered principally through a sale transaction rather than through continuing use. 

(p) Provisions for warranty and free service 

Provisions are based on expected levels of claims arising during the warranty and free service period. Provision for free service is 

determined using a standard labour hours to be incurred. 

(q) Borrowings 

(r) Tax 

Borrowings are stated at cost. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer 

settlement of the liability for at least 12 months after the balance sheet date. 

Interest, dividends, losses and gains relating to a financial instrument, or a component part, classified as a liability is reported within 

finance costs in the income statements. 

Tax on the profit or loss for the period comprises current and deferred tax. Current tax expense is the expected amount of income taxes payable 

in respect of the taxable profit for the period and is measured using the tax rates that have been enacted at the balance sheet date. 

Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax bases 

of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for 

all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses 

and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary 

differences, unused tax losses and unused tax credits can be utilised. 



www.eon.com.my


31 MARCH 2009 


(r) Tax (cont’d) 

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the 

deductible temporary differences and/or unutilised tax losses can be utilised. 

Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognition of 

an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting 

profit nor taxable profit. 

(s) Revenue recognition 

Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Group’s 

activities. Revenue is shown net of value-added tax, returns, rebates and discounts and after eliminating sales within the Group. 

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will 

flow to the entity and specific criteria have been met for each of the Group’s activities as described below. The amount of revenue is 

not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates 

on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred 

to customers. Revenue from the rendering of services is recognised when services are performed. 

Other income recognition 

(i) Interest and rental income is recognised on an accrual basis unless collectibility is in doubt. 

(ii) Dividend income is recognised when the Group’s right to receive is established. 

(t) Receivables 

Receivables are carried at invoice amount less an allowance for doubtful debts. The allowance is established when there is objective 

evidence that the Group will not be able to collect all amounts due according to the original term of receivables. 

(u) Employee benefits 

(i) Short-term employee benefits 

Wages, salaries, bonuses, annual leave entitlement, medical leave, and other short-term employee benefits are recognised in the 

period in which the associated services are rendered by the employees. 

(ii) Post-employment benefits 

Defined contribution plan 

The Group contributes to the Employees’ Provident Fund, which is a defined contribution plan regulated and managed by the 

government. The contributions are charged to the income statement in the period to which they relate. 

Defined benefit plan 

The Group operates an unfunded defined benefit scheme for all eligible employees as stipulated in the Collective Agreement with 

its union employees. 

The retirement benefits have been calculated by reference to an actuarial valuation using the Projected Unit Credit method. 

(v) Foreign currencies 

(i) Functional and presentation currency 

The management has determined that the currency of the primary economic environment in which each company operates, i.e. 

functional currency, to be Ringgit Malaysia. Sales price and major costs of providing goods and services including major operating 

expenses are primarily influenced by fluctuations in Ringgit Malaysia. The financial statements are presented in Ringgit Malaysia, 

which is the Group’s functional and presentation currency. 


2009 Annual Report


(v) Foreign currencies (cont’d) 

(ii) Transactions and balances 

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the 

transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at 

period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income 

statement. 

(w) Financial instruments 

A financial instrument is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity 

instrument of another enterprise. 

(i) Financial instruments recognised in the balance sheet 

The particular recognition method adopted for financial instruments recognised on the balance sheet is disclosed in the individual 

policy statement associated with each item. 

A financial asset is any asset that is cash, a contractual right to receive cash or another financial asset from another enterprise, 

a contractual right to exchange financial instruments with another enterprise under conditions that are potentially favourable, or 

an equity instrument of another enterprise. 

A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another enterprise, 

or to exchange financial instruments with another enterprise under conditions that are potentially unfavourable. 

(ii) Financial instruments not recognised in the balance sheet 

The Group is a party to financial instruments which comprise foreign currency forward contracts. These instruments are not 

recognised in the financial statements on inception. 

Foreign currency forward contracts 

The Group enters into foreign currency forward contracts to protect the Group from movements in exchange rate by establishing 

the rate at which a foreign currency asset or liability will be settled. Exchange gains and losses on contracts are recognised when 

settled at which time they are included in the measurement of the transaction hedged. 

(iii) Fair value estimation for disclosure purposes 

Where available, quoted and observable market prices are used as the measure of fair values. Where such quoted and observable 

market prices are not available, fair values are estimated based on a range of methodologies and assumptions regarding risk 

characteristics of various financial instruments, discount rates, estimates of future cash flows, net tangible assets backing and other 

factors. Changes in the uncertainties and assumptions could materially affect these estimates and the resulting fair value estimates. 

The carrying values for financial assets, less any estimated credit adjustments and financial liabilities with a maturity of less than 

one year are assumed to approximate their fair values. 



www.eon.com.my


31 MARCH 2009 

3 FINANCIAL RISK mANAGEmENT oBJECTIVES AND PoLICIES 

The Group’s activities are exposed to a variety of financial risks, including foreign currency exchange risk, interest rate risk, credit risk, market 

risk and liquidity risk. The Group’s overall financial risk management objective is to ensure that the Group creates value for its shareholders. 

The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the 

Group’s business whilst managing its foreign exchange, interest, credit and liquidity risks. The Group operates within clearly defined guidelines 

that are approved by the Board of Directors. 

(a) Interest rate risk 

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. 

The Group and Company’s interest rate risk exposure are limited to the impact of rate changes on their interest bearing assets such 

as deposits with licensed banks and other financial institutions as well as interest-bearing borrowings. 

The Group manages its interest rate exposure by maintaining a prudent mix of fixed and floating rate borrowing instruments. The 

Group’s exposure to risk that the value of a financial instrument will fluctuate due to changes in market interest rates is provided in 

the respective notes to financial statement. 

(b) Foreign currency exchange risk 

Foreign currency exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. 

The Company does not have any significant exposure to foreign currency exchange risk. The Group is exposed to foreign currency 

exchange risk as a result of the foreign currency transactions entered into by the Group. To limit its exposure to foreign currency 

exchange movements, the Group enters into foreign currency forward contracts. 

(c) Credit risk 

Credit risk is the potential loss arising from customers or counterparties failing to meet their financial contractual obligations. 

The Group and Company have no significant concentration of credit risks. Credit risk is controlled by the application of credit approvals, 

limit and monitoring procedures. Credit risks are minimised and monitored via strictly limiting the Group’s association to business partners 

with high credit worthiness. Trade receivables are monitored on an ongoing basis via the Group management reporting procedures. 

(d) market risk 

Market risk is the potential loss which can arise for positions held by the Group and Company due to adverse changes in the level of 

market prices or price-influencing parameters in the financial markets. The adverse changes can occur in interest rate, foreign exchange 

and equity markets. The Group and Company regularly review these risks and take proactive measures to mitigate the potential impact 

of such risks. 

(e) Liquidity risk 

Liquidity risk is the risk that an enterprise will encounter difficulty in raising funds to meet its current and future payment obligations 

associated with financial obligations when they fall due. 

Prudent liquidity risk management implies maintaining sufficient cash, highly liquid investments and the availability of funding through 

an adequate amount of committed credit facilities. The Group and Company monitor their liquidity position on a daily basis. 

4 CRITICAL ACCoUNTING ESTImATES AND JUDGmENTS 

Estimates and judgments are continually evaluated by the Directors and are based on historical experience and other factors, including 

expectations of future events that are believed to be reasonable under the circumstances. 

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the 

related actual results. To enhance the information content of the estimates, certain key variables that are anticipated to have material impact 

to the Group’s results and financial position are tested for sensitivity to changes in the underlying parameters. The estimates and assumptions 

that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year 

are outlined below. 

(a) Provision for free service 

The Group provides free service in respect of vehicles sold. Provision for free service is determined using a standard labour hours to 

be incurred based on past service histories and trends. 


2009 Annual Report

4 CRITICAL ACCoUNTING ESTImATES AND JUDGmENTS (cont’d) 

(b) Impairment of property, plant and equipment and an associate 

If, at the date of the financial statements, there is any indication that a tangible non-current asset has been impaired, the recoverable 

amount of the asset would be estimated. The recoverable amount is the higher of the asset’s fair value less cost to sell and its value 

in use, estimated with reference to management’s projections of future cash flows. If the recoverable amount of the asset is less than 

the carrying amount, an impairment loss is recognised and the carrying amount of the asset is reduced to the recoverable amount. 

Determination of the recoverable amount is based upon management’s projections of future cash flows, which are generally made by 

use of internal business plans or forecasts. 

(c) Taxation 

Significant judgment is required in determining the provision for income taxes. There are transactions and calculations for which 

the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for tax based on 

estimates of assessment of the tax liability due. When the final tax outcome of these matters is different from the amounts that were 

initially recorded, such differences will impact the income tax and deferred tax provisions, where applicable, in the period in which such 

determination is made. 

(d) Recognition of deferred tax assets 

5 REVENUE 

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the temporary 

differences can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be 

recognised based upon the likely timing and level of future taxable profits together with future tax planning strategies. 

Revenue for the Group comprises sales of motor vehicles, accessories and related spare parts net of discounts, returns and government duties 

and taxes, net commission earned and after sales services. 

Revenue for the Company comprises sales of motor vehicles, accessories and related spare parts net of discounts, returns and government 

duties and taxes, net commission earned and revenue from after sales services. 

Analysis of revenue: 



GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Vehicles and accessories 2,228,979 2,091,818 1,888,062 1,688,335 

Parts and after sales services 190,214 230,070 182,591 221,385 

Others 679 434 - - 

2,419,872 2,322,322 2,070,653 1,909,720 

www.eon.com.my


31 MARCH 2009 

6 PRoFIT FRom oPERATIoNS 



GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

The profit from operations is arrived at 

after charging/(crediting): 

Auditors’ remuneration 148 217 93 142 

Staff costs: 

- wages, salaries and bonus 46,395 56,547 39,275 48,581 

- defined contribution plan 8,706 11,094 7,276 9,432 

- defined benefit plan 253 1,180 242 1,120 

- staff separation scheme - 6,153 - 7,419 

- other staff costs 6,839 8,367 5,847 7,442 

62,193 83,341 52,640 73,994 

Directors’ remuneration (Note 7) 1,144 1,383 1,144 1,383 

Depreciation of property, plant and equipment 12,249 18,540 7,515 10,788 

Amortisation of prepaid lease rental 286 545 19 23 

Rental of buildings: 

- a subsidiary - - 6,120 9,713 

- others 8,682 8,668 7,248 6,554 

Property, plant and equipment written off 67 2,273 56 282 

Warranty claims written off 1,903 2,545 1,903 2,545 

Net inventory written down/(back) 1,287 (6,902) 2,383 - 

Research expenses 27 - - - 

Impairment loss on property, plant and equipment - 2,282 - - 

Impairment loss on prepaid lease rental - 108 - - 

Hire of equipment 288 354 232 261 

Allowance/(write-back) for impairment of investment in: 

- a subsidiary - - 100 - 

- an associate - (8,225) 16,312 (7,496) 

Provision for liabilities and charges (net of write-back) 3,314 (149) 2,047 (945) 

Loss on liquidation of an associate 82 - 9 - 

Allowance/(write back) for doubtful debts: 

- receivables 30 155 - 59 

- amounts due from subsidiaries - - (14,151) 449 

Bad debts written off 39 - 39 - 

Gross dividends from investments in: 

- associates - - (2,861) (7,434) 

- jointly controlled entities - - (33,519) (27,433) 

- quoted investments in Malaysia (27) (41) (27) (41) 

Rental income (810) (587) (97) (68) 

Interest income from: 

- subsidiaries - - (163) (2,909) 

- deposits with licensed banks/other licensed financial institutions (5,571) (14,939) (5,459) (14,802) 

Net gain on sale of property, plant and equipment (240) (34,331) (273) (918) 

Net unrealised loss on foreign exchange 3 - - - 

Net realised loss/(gain) on foreign exchange 92 (131) - - 

Direct operating expenses from investment properties that generated income for the Group during the financial year amounted to approximately 

RM29,000 (2008: RM35,000). 

Direct operating expenses from investment properties that did not generate income for the Group during the financial year amounted to 

approximately RM24,000 (2008: RM39,000).

7 DIRECToRS’ REmUNERATIoN 



GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Fees 516 672 516 672 

Salaries, bonuses and allowances 546 612 546 612 

Defined contribution plan 82 99 82 99 

1,144 1,383 1,144 1,383 

The estimated monetary value of other benefits not included 

in the above received by Directors of the Company 236 267 236 267 

8 FINANCE CoST 

9 TAX 

GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Interest expense from: 

- borrowings 104 - 104 - 

- finance lease liabilities 35 7 35 7 

In Malaysia 

139 7 139 7 

GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Current tax: 

- Current financial year 7,578 10,048 12,476 13,372 

- (Over)/under provision in prior 

financial period/years (3,461) 3,563 - - 

4,117 13,611 12,476 13,372 

www.eon.com.my


31 MARCH 2009 

9 TAX (cont’d) 



GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Deferred tax (Note 19): 

- Origination and reversal of 

temporary differences (2,407) 1,400 (762) 3,054 

- Under/(over) provision in prior 

financial period/years 4,539 (4,248) - - 

Reconciliation of the profit 

before tax and tax expense: 

2,132 (2,848) (762) 3,054 

6,249 10,763 11,714 16,426 

Profit before tax 31,928 116,127 45,209 70,522 

Tax at 25% (2008: 26%) 7,982 30,193 11,302 18,335 

Tax effects of: 

- share of jointly controlled entities (5,978) (9,287) - - 

- share of associates 3,783 (388) - - 

Non-deductible expenses 1,405 2,893 1,602 718 

Non-taxable income - (10,048) (1,660) (3,123) 

Change in tax rate 236 588 470 496 

Unrecognised deferred tax assets 104 46 - - 

Net under/(over) provision in prior financial years 1,078 (685) - - 

Recognition of previously unrecognised deferred tax assets (1,158) - - - 

Utilisation of prior financial period/years tax losses not 

previously recognised (1,203) (2,549) - - 

Tax 6,249 10,763 11,714 16,426 

10 DIVIDENDS 

Dividends paid in respect of the financial year are as follows: 

GRoUP AND ComPANy 

31.3.2009 31.3.2008 

Amount of Amount of 

Gross dividend Gross dividend 

per share net of tax per share net of tax 

Sen Rm’000 Sen Rm’000 

Final dividend paid 13.5 24,874 137.0 249,018 

Interim dividend paid 8.0 14,940 - - 

Special tax exempt dividend paid 100.0 248,993 - - 

121.5 288,807 137.0 249,018

10 DIVIDENDS (cont’d) 

At the forthcoming Annual General Meeting of the Company, a final gross dividend of 2.0 sen (2008: 13.5 sen) per share less income tax at 

25%, amounting to approximately RM3,735,000 (2008: RM24,874,000) in respect of the financial year ended 31 March 2009 will be proposed 

for shareholders’ approval. 

11 EARNINGS PER SHARE 

Basic earnings per share is calculated by dividing the profit attributable to equity holders by the weighted average number of ordinary shares 

in issue during the financial year. 



GRoUP 

year 15 months 

ended ended 

31.3.2009 31.3.2008 

Profit attributable to equity holders (RM’000) 25,679 105,364 

Weighted average number of ordinary shares in issue (‘000) 248,993 248,993 

Basic earnings per share (sen) 10.3 33.9 

* For comparative purposes, the calculation of earnings per share for the financial period ended 31 March 2008 is annualised. 

12 PRoPERTy, PLANT AND EQUIPmENT 

Group 

Cost 

Buildings machinery, 

Freehold and equipment 

land renovation and vehicles Total 

Rm’000 Rm’000 Rm’000 Rm’000 

At 1 April 2008 61,028 164,593 125,179 350,800 

Additions - 1,553 4,562 6,115 

Disposals - (1,181) (3,663) (4,844) 

Write-offs - (223) (132) (355) 

At 31 March 2009 61,028 164,742 125,946 351,716 

Accumulated depreciation 

At 1 April 2008 - 64,109 106,034 170,143 

Charge for the financial year - 4,432 7,817 12,249 

Disposals - (1,180) (3,400) (4,580) 

Write-offs - (187) (101) (288) 

At 31 March 2009 - 67,174 110,350 177,524 

Net book value 61,028 97,568 15,596 174,192 

www.eon.com.my


31 MARCH 2009 

12 PRoPERTy, PLANT AND EQUIPmENT (cont’d) 

Group 

Cost 




Freehold and equipment Construction 

land renovation and vehicles in progress Total 

Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 

At 1 January 2007 81,772 189,581 129,933 - 401,286 

Additions - 1,354 5,331 - 6,685 

Disposals (20,527) (18,593) (6,985) - (46,105) 

Write-offs - (4,379) (3,100) - (7,479) 

Revaluation surplus 852 - - - 852 

Reclassified from non-current assets held for sale 11,537 30 - 174 11,741 

Reclassified as investment properties (12,606) (3,400) - (174) (16,180) 

At 31 March 2008 61,028 164,593 125,179 - 350,800 


At 1 January 2007 - 63,596 102,553 - 166,149 

Charge for the financial period - 6,654 11,886 - 18,540 

Disposals - (5,234) (4,845) - (10,079) 

Write-offs - (2,870) (2,336) - (5,206) 

Impairment loss - 3,506 (1,224) - 2,282 

Reclassified from non-current assets held for sale - 26 - - 26 

Revaluation surplus - (239) - - (239) 

Reclassified as investment properties - (1,330) - - (1,330) 

At 31 March 2008 - 64,109 106,034 - 170,143 

Net book value 61,028 100,484 19,145 - 180,657 

Company 

Cost 


and equipment 

renovation and vehicles Total 

Rm’000 Rm’000 Rm’000 

At 1 April 2008 22,996 103,118 126,114 

Additions 1,062 4,283 5,345 

Disposals (1,178) (3,398) (4,576) 

Write-offs (91) (95) (186) 

At 31 March 2009 22,789 103,908 126,697 


At 1 April 2008 15,576 88,260 103,836 

Charge for the financial year 1,441 6,074 7,515 

Disposals (1,178) (3,219) (4,397) 

Write-offs (59) (71) (130) 

At 31 March 2009 15,780 91,044 106,824 

Net book value 7,009 12,864 19,873

12 PRoPERTy, PLANT AND EQUIPmENT (cont’d) 

Cost 




and equipment 

renovation and vehicles Total 

Rm’000 Rm’000 Rm’000 

At 1 January 2007 22,826 105,089 127,915 

Additions 1,261 5,074 6,335 

Disposals (3) (5,028) (5,031) 

Write-offs (1,088) (2,017) (3,105) 

At 31 March 2008 22,996 103,118 126,114 


At 1 January 2007 14,849 85,065 99,914 

Charge for the financial period 1,612 9,176 10,788 

Disposals (3) (4,040) (4,043) 

Write-offs (882) (1,941) (2,823) 

At 31 March 2008 15,576 88,260 103,836 

Net book value 7,420 14,858 22,278 

During the financial year, the Group and Company acquired property, plant and equipment by means of finance lease arrangements amounting 

to RM1,831,000 (2008: RM nil). 

Net book value of property, plant and equipment for the Group and Company purchased under finance lease arrangement is approximately 

RM1,784,000 (2008: RM574,000). 

13 PREPAID LEASE RENTAL 

Group 

Long-term Short-term 

leasehold leasehold 

land land Total 

Rm’000 Rm’000 Rm’000 

At 1 April 2008 6,169 4,998 11,167 

Amortised during the financial year (53) (233) (286) 

At 31 March 2009 6,116 4,765 10,881 

At 1 January 2007 6,474 6,800 13,274 

Amortised during the financial period (90) (455) (545) 

Reclassification (215) 215 - 

Reclassified from non-current assets held for sale - 1,937 1,937 

Impairment loss - (108) (108) 

Revaluation surplus - 289 289 

Reclassified as investment properties - (3,680) (3,680) 

At 31 March 2008 6,169 4,998 11,167 

www.eon.com.my


31 MARCH 2009 

13 PREPAID LEASE RENTAL (cont’d) 

Company 



Short-term 

leasehold 

land Total 

Rm’000 Rm’000 

At 1 April 2008 1,580 1,580 

Amortised during the financial year (19) (19) 

At 31 March 2009 1,561 1,561 

At 1 January 2007 1,603 1,603 

Amortised during the financial period (23) (23) 

At 31 March 2008 1,580 1,580 

14 INVESTmENT PRoPERTIES 

Short term Buildings 

Freehold leasehold and Construction 

Group land land renovation in progress Total 

Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 

At 1 April 2008 12,606 3,680 2,070 174 18,530 

Reclassification - - 174 (174) - 

At 31 March 2009 12,606 3,680 2,244 - 18,530 

At 1 January 2007 - - - - - 

Reclassified from property, plant and equipment 12,606 - 2,070 174 14,850 

Reclassified from prepaid lease rental - 3,680 - - 3,680 

At 31 March 2008 12,606 3,680 2,070 174 18,530 

Investment properties are stated at fair value, representing open-market value determined by external valuers. 

15 oTHER INVESTmENTS 

At cost 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Quoted shares in Malaysia 521 521 338 338 

Unquoted shares 5,644 6,330 5,526 6,212 

Less: Accumulated impairment losses (1,776) (1,776) (1,776) (1,776) 

3,868 4,554 3,750 4,436 

4,389 5,075 4,088 4,774 

Market value of quoted shares in Malaysia 703 1,219 703 1,219 

The fair value of the unquoted shares approximate their carrying value.

16 SUBSIDIARIES 



ComPANy 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Unquoted shares, at cost 64,534 64,534 

Less: Accumulated impairment losses (11,785) (11,685) 

The subsidiaries, all of which are incorporated in Malaysia, are as follows: 

Effective 

equity interest 

Name of subsidiary 31.3.2009 31.3.2008 Principal activities 

% % 

Held by the Company: 

52,749 52,849 

EON Properties Sdn Bhd 100.0 100.0 Investment and management of properties 

Automotive Conversion Engineering 100.0 100.0 Conversion and modification of motor 

Sdn Bhd vehicles and distribution of car accessories 

Euromobil Sdn Bhd 100.0 100.0 Marketing of Audi & Volkswagen motor vehicles 

and related spare parts and servicing of vehicles 

EONMobil Sdn Bhd 100.0 100.0 Marketing of Suzuki motor vehicles 

EON Auto Mart Sdn Bhd 100.0 100.0 Marketing of Mitsubishi motor vehicles 

EON Trading Sdn Bhd 100.0 100.0 Dormant 

Liku Nostalgia Sdn Bhd 100.0 100.0 Dormant 

EON Technologies Sdn Bhd 100.0 100.0 Dormant 

EON Resorts Sdn Bhd 100.0 100.0 Dormant 

Corporate Galaxy Sdn Bhd 100.0 100.0 Dormant 

Held by EON Trading Sdn Bhd: 

EON Inovasi Sdn Bhd 100.0 100.0 Dormant 

Held by EON Technologies Sdn Bhd: 

EON Network Systems Sdn Bhd 100.0 100.0 Dormant 

www.eon.com.my


31 MARCH 2009 

17 JoINTLy CoNTRoLLED ENTITIES 

Group 



31.3.2009 31.3.2008 

Rm’000 Rm’000 

Share of net assets of jointly controlled entities 102,251 105,435 

Company 


(i) The Group’s share of the assets and liabilities of the jointly controlled entities are as follows: 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Current assets 125,231 130,915 

Non-current assets 15,636 14,948 

Current liabilities (38,616) (40,348) 

Non-current liabilities - (80) 

Net assets 102,251 105,435 

(ii) The Group’s share of the revenue and expenses of the jointly controlled entities are as follows: 


ended ended 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Revenue 322,751 274,624 

Expenses (290,949) (228,140) 

Profit before tax 31,802 46,484 

Tax (7,890) (10,763) 

Profit after tax 23,912 35,721 

(iii) The Group’s share of capital commitments for property, plant and equipment of the jointly controlled entities are as follows: 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Approved and contracted for - - 

Approved but not contracted for 773 937

17 JoINTLy CoNTRoLLED ENTITIES (cont’d) 

(iv) There is no material contingent liability relating to jointly controlled entities. 

18 ASSoCIATES 

Group 

The jointly controlled entities, all of which are incorporated in Malaysia, are as follows: 

Effective 


Name of jointly controlled entity 31.3.2009 31.3.2008 Principal activities 

% % 

Proton Parts Centre Sdn Bhd 40.0 40.0 Warehousing and distribution of motor 

vehicles, spare parts and accessories 

Mitsubishi Motors Malaysia Sdn Bhd + 48.0 48.0 Distribution of the Mitsubishi motor 

vehicles, vehicle components, 

spare parts and accessories 

+ Not audited by PricewaterhouseCoopers 



31.3.2009 31.3.2008 

Rm’000 Rm’000 

Share of net assets of associates 41,047 50,368 

Company 


Less: Accumulated impairment losses (36,153) (20,221) 

(i) The Group’s share of the assets and liabilities of the associates are as follows: 

27,208 36,312 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Current assets 34,847 40,250 

Non-current assets 127,062 132,678 

Current liabilities (31,377) (33,323) 

Non-current liabilities (89,485) (89,237) 

41,047 50,368 

www.eon.com.my


31 MARCH 2009 

18 ASSoCIATES (cont’d) 

(ii) The Group’s share of the revenue and expenses of the associates are as follows: 




ended ended 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Revenue 100,170 117,244 

Expenses (114,236) (111,602) 

(Loss)/profit before tax (14,066) 5,642 

Tax (1,064) (4,148) 

(Loss)/profit after tax (15,130) 1,494 

(iii) There is no capital commitment relating to associates. 

(iv) There is no material contingent liability relating to associates. 

The associates are as follows: 

Effective 


Name of associate 31.3.2009 31.3.2008 Principal activities 

% % 

SRT-EON Security Services 

Sdn Bhd + 40.0 40.0 Provision of security services 

HICOM Megah Sdn Bhd + 36.0 36.0 Property development and investment holding 

Johnson Controls Automotive 30.0 30.0 Manufacturing of car seats, seat paddings, 

Holding (M) Sdn Bhd steering wheels, and other car interior parts for 

the group and investment holding and property 

letting for the company 

Incorporated in the United Kingdom: 

Proton Cars (Europe) Limited * - 44.4 Liquidated on 22 December 2008 

+ Not audited by PricewaterhouseCoopers 

* Audited by a member firm of PricewaterhouseCoopers International Limited which is a separate and independent legal entity from 

PricewaterhouseCoopers Malaysia.

19 DEFERRED TAXATIoN 

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities 

and when the deferred taxes relate to the same authority. 

Subject to income tax 



GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Deferred tax assets 5,400 3,521 3,371 2,609 

Deferred tax liabilities (6,102) (2,091) - - 

(702) 1,430 3,371 2,609 

At 1 April/1 January 1,430 (1,418) 2,609 5,663 

(Charged)/credited to income statement 

(Note 9): 

- property, plant and equipment (4,680) 7,336 (643) 692 

- provisions 1,756 (2,578) 1,405 (2,155) 

- unabsorbed tax losses 792 (319) - - 

- unutilised capital allowances - (1,591) - (1,591) 

(2,132) 2,848 762 (3,054) 

At 31 March (702) 1,430 3,371 2,609 

The deferred tax assets and liabilities are in respect of the following temporary differences: 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Deferred tax assets (before and after offsetting) 

Provisions 6,302 4,546 5,260 3,855 

Unabsorbed tax losses 1,157 365 - - 

7,459 4,911 5,260 3,855 

Less: Offsetting (2,059) (1,390) (1,889) (1,246) 

5,400 3,521 3,371 2,609 

Deferred tax liabilities (before and after offsetting) 

Property, plant and equipment (8,161) (3,481) (1,889) (1,246) 

Less: Offsetting 2,059 1,390 1,889 1,246 

(6,102) (2,091) - - 

www.eon.com.my


31 MARCH 2009 

19 DEFERRED TAXATIoN (cont’d) 

Unutilised capital allowances, unabsorbed tax losses and other temporary differences (with no expiry date) for which deferred tax benefits 

have not been accounted for in the financial statements are as follows: 



GRoUP 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Unabsorbed tax losses 48,298 57,940 

Unutilised capital allowances 633 518 

Other temporary differences 1,526 1,025 

50,457 59,483 

No deferred tax asset is recognised in respect of the above as it is not probable that future taxable profit will be available against which 

they can be utilised. 

20 INVENToRIES 

At cost: 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Raw materials 725 137 - - 

Work-in-progress 141 83 - - 

Finished goods: 

- vehicles 203,924 270,501 182,488 251,993 

- spare parts, accessories 

and others 5,726 5,435 4,346 3,952 

At net realisable value: 

210,516 276,156 186,834 255,945 

Finished goods: 

- vehicles 12,595 12,742 5,386 4,031 

- spare parts, accessories 

and others 1,264 2,469 1,264 2,469 

13,859 15,211 6,650 6,500 

224,375 291,367 193,484 262,445

21 RECEIVABLES 



GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Trade receivables 89,911 105,619 76,906 93,178 

Less: Allowance for doubtful debts (64) (58) (34) (59) 

89,847 105,561 76,872 93,119 

Other receivables 11,012 15,701 1,508 3,511 

Less: Allowance for doubtful debts (247) (248) - - 

10,765 15,453 1,508 3,511 

Warranty claims receivable 7,183 9,123 6,449 8,400 

Deposits 3,874 3,678 2,638 2,633 

Prepayments 1,110 1,098 605 962 

112,779 134,913 88,072 108,625 

Credit terms of trade receivables ranged from 7 to 90 days (2008: 10 to 90 days) for the Group and from 7 to 90 days (2008: 30 to 90 

days) for the Company. 

22 AmoUNTS DUE FRom ImmEDIATE AND PENULTImATE HoLDING ComPANIES 

The amounts due from immediate and penultimate holding companies are unsecured, interest free and payable at call. 

23 AmoUNTS DUE FRom/(To) SUBSIDIARIES, JoINTLy CoNTRoLLED ENTITIES AND AN ASSoCIATE 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Amounts due from subsidiaries - - 180,943 186,603 

Less: Allowances for doubtful debts - - (56,453) (70,604) 

- - 124,490 115,999 

Amounts due from jointly controlled entities 2,155 1,161 1,031 322 

Amounts due from an associate 5 8 5 8 

Amounts due to subsidiaries - - (1,248) (1,183) 

Amounts due to jointly controlled entities (24,216) (22,270) (24,216) (22,270) 

The amounts due from/(to) are unsecured, interest free and payable at call, except for the amounts due from subsidiaries amounting to 

RM69,271,000 (2008: RM71,889,000) which are charged interest at rates ranging from 2.53% to 3.49% (2008: 3.46% to 3.52%) per annum. 

The effective interest rate at the balance sheet date is 2.53% (2008: 3.49%) per annum. 

www.eon.com.my


31 MARCH 2009 

24 AmoUNTS DUE FRom/(To) oTHER RELATED ComPANIES 

The amounts due from/(to) other related companies are unsecured, interest free and payable at call. 

25 CASH AND BANK BALANCES AND DEPoSITS WITH FINANCIAL INSTITUTIoNS 



GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Cash and bank balances 31,498 28,508 23,845 20,736 

Deposits with licensed banks 88,401 112,451 83,700 109,474 

Deposits with other licensed financial institutions - 242,560 - 242,560 

The weighted average interest rates as at the financial year end are as follows: 

119,899 383,519 107,545 372,770 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

% % % % 

per annum per annum per annum per annum 

Deposits with licensed banks 1.94 3.47 1.94 3.47 

Deposits with other licensed financial institutions n/a 3.52 n/a 3.52 

Bank balances are deposits held at call with licensed banks and earn no interest. 

Deposits with licensed banks and other licensed financial institutions of the Group and Company have an average maturity of 13 days (2008: 

30 days). 

26 NoN-CURRENT ASSETS HELD FoR SALE (2008) 

Group 

Short term Buildings 

Freehold leasehold and Construction 

land land renovation in progress Total 

Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 

At 1 January 2007 11,537 1,937 4 174 13,652 

Reclassified as property, plant and equipment (11,537) - (4) (174) (11,715) 

Reclassified as prepaid lease rental - (1,937) - - (1,937) 

At 31 March 2008 - - - - - 

Non-current assets held for sale comprised land and buildings previously included in property, plant and equipment which have been identified 

and approved for disposal by the Directors. At 31 March 2008, the disposals have not been completed and were not expected to be completed 

within 12 months after the balance sheet date. Thus, these balances have been reclassified to the original category.

27 PAyABLES 



GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Trade payables 89,093 218,339 86,939 215,683 

Other payables 18,460 25,382 10,619 13,990 

Accruals 29,193 22,120 26,735 18,333 

Lease payables (Note 31) 523 411 523 411 

137,269 266,252 124,816 248,417 

Credit terms of the trade payables of the Group and Company ranged from 7 to 90 days (2008: 7 to 60 days). 

The currency exposure profile of trade payables is as follows: 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

- Ringgit Malaysia 89,057 218,325 86,939 215,683 

- Euro 36 14 - - 

28 PRoVISIoNS FoR LIABILITIES AND CHARGES 

Group 

89,093 218,339 86,939 215,683 

Extended Free 

Warranty warranty service Total 

RM’000 RM’000 RM’000 RM’000 

At 1 April 2008 590 1,819 2,586 4,995 

Charged to income statement 1,190 - 6,785 7,975 

Unused amount reversed during the financial year (1) (1,656) (3,004) (4,661) 

Utilised during the financial year (1,188) (45) (4,218) (5,451) 

At 31 March 2009 591 118 2,149 2,858 

Company 

At 1 April 2008 - 1,819 2,342 4,161 

Charged to income statement - - 6,703 6,703 

Unused amount reversed during the financial year - (1,656) (3,000) (4,656) 

Utilised during the financial year - (45) (4,145) (4,190) 

At 31 March 2009 - 118 1,900 2,018 

Warranty/extended warranty 

The Group gives warranty and extended warranty on certain vehicles and undertakes to replace defective items. A provision has been 

recognised at the financial year/period end for expected warranty claims based on past experience of the level of returns. 

Free service 

The Group provides free service to certain vehicles and undertake to provide free labour charges. A provision has been recognised at the 

financial year/period end for expected free service claims based on past experience of the level of vehicles serviced. 

www.eon.com.my


31 MARCH 2009 

29 BANK BoRRoWINGS (UNSECURED) 



GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Bankers’ acceptance 20,000 - 20,000 - 

The weighted average effective interest rate applicable to the Group and Company was 2.69% per annum. 

30 PRoVISIoN FoR RETIREmENT BENEFITS 

The Group operates an unfunded defined benefit scheme for all eligible employees as stipulated in the Collection Agreement with its union employees. 

Provision for retirement benefits is charged to the income statement so as to spread the cost of pensions over the employees’ working life 

with the Group. The charge is determined by a qualified actuary on the basis of triennial valuations. The latest actuarial valuation of the plan 

was carried out on 31 December 2006, using the Projected Credit Unit method. 

GRoUP ComPANy 

Rm’000 Rm’000 

At 1 April 2008 7,845 7,427 

Charged to income statement 894 849 

Unused amount reversed (641) (607) 

Utilised during the financial year (102) (102) 

At 31 March 2009 7,996 7,567 

The amount recognised in the balance sheets comprised the following: 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Present value of the unfunded obligations 7,996 7,845 7,567 7,427 

The amount recognised in the income statements were included in administrative expenses and comprised the following: 

GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Current service cost 504 670 473 643 

Interest cost 390 510 376 477 

Unused amount reversed (641) - (607) - 

253 1,180 242 1,120

30 PRoVISIoN FoR RETIREmENT BENEFITS (cont’d) 

The principal actuarial assumptions used in the latest actuarial valuation are: 

Discount rate 6 

Expected rate of salary increase 0 - 5 

31 LEASE PAyABLES 

Finance lease liabilities are repayable in the following years: 




% 

31.3.2009 31.3.2008 

Rm’000 Rm’000 

Within one year 617 411 

Between one and five years 1,050 - 

1,667 411 

Less: Finance charges (158) - 

Present value of finance lease liabilities 1,509 411 

Representing lease liabilities: 

Within one year included in payables (Note 27) 523 411 

Between one and five years 986 - 

32 SHARE CAPITAL 

Authorised: 

1,509 411 


31.3.2009 31.3.2008 

Rm’000 Rm’000 

Ordinary shares of RM1 each 1,000,000 1,000,000 

Issued and fully paid: 

Ordinary shares of RM1 each 248,993 248,993 

www.eon.com.my


31 MARCH 2009 

33 SIGNIFICANT RELATED PARTy TRANSACTIoNS 

In addition to other related party disclosures mentioned elsewhere in the financial statements, set out below are other significant related party 

transactions and the recurrent related party transactions for which shareholders’ mandate has been obtained. These related party transactions 

were carried out on terms and conditions similar to those obtainable in other transactions with unrelated parties. All related party transactions 

required by Bursa Malaysia Securities Listing Requirements to be mandated by shareholders were conducted in accordance with the general 

mandate obtained from shareholders. 

The Company is 79.05% owned by HICOM Holdings Berhad, which is effectively a wholly-owned subsidiary of DRB-HICOM Berhad (“DRB- 

HICOM”). DRB-HICOM is incorporated in Malaysia and listed on the Main Board of Bursa Malaysia Securities Berhad. The ultimate holding 

company is Etika Strategi Sdn Bhd, a company incorporated in Malaysia. 

(a) Significant transactions with related parties 



GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

(i) Sales of motor vehicles, accessories, 

related spare parts/servicing of vehicles to: 

Mitsubishi Motors Malaysia Sdn Bhd 

(a jointly controlled entity) 

MMC – Gamuda Joint Venture Sdn Bhd 

(a company in which a major shareholder 

4,405 1,402 4,394 1,323 

of DRB-HICOM has significant interest) 

Proton Parts Centre Sdn Bhd 

4,384 - - - 

(a jointly controlled entity) 1,354 1,344 1,354 1,344 

(ii) Insurance commission and claims 

received/receivable from: 

Uni Asia General Insurance Berhad 

(a subsidiary of DRB-HICOM) 10,684 10,957 10,462 10,957 

(iii) Sale of property to: 

HICOM Indungan Sdn Bhd 

(a subsidiary of DRB-HICOM) - 67,000 - - 

(iv) Interest received/receivable from: 

EON Properties Sdn Bhd - - 163 2,909 

(v) Purchases of motor vehicles/related spare parts from: 

Automotive Conversion Engineering Sdn Bhd 

Proton Parts Centre Sdn Bhd 

- - 11,615 8,669 


Mitsubishi Motors Malaysia Sdn Bhd 

98,208 127,466 98,208 127,466 


Suzuki Malaysia Automobile Sdn Bhd 

277,711 253,766 5,594 4,180 

(an associate of DRB-HICOM) 9,269 7,072 - - 

(vi) Payment of rental to: 

EON Properties Sdn Bhd - - 6,120 9,713 

(vii) Handling fees received/receivable from: 

EON Capital Group (a company in which a Director 

is deemed to have an interest) 4,066 5,297 4,066 5,297

33 SIGNIFICANT RELATED PARTy TRANSACTIoNS (cont’d) 

(a) Significant transactions with related parties (cont’d) 



GRoUP ComPANy 



31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

(viii) Write back of doubtful debts on amounts 

due from subsidiary: 

EON Auto Mart Sdn Bhd - - (14,611) - 

(b) Significant balances with related parties 

(i) Amounts due from jointly controlled entities: 

Mitsubishi Motors Malaysia Sdn Bhd 2,155 1,161 1,031 322 

(ii) Amounts due to jointly controlled entities: 

Proton Parts Centre Sdn Bhd (24,216) (22,270) (24,216) (22,270) 

(iii) Amounts due from other related companies: 

Uni Asia General Insurance Berhad 1,858 - 1,850 - 

(iv) Short term deposits with: 

Bank Muamalat Malaysia Berhad 

(a subsidiary of DRB-HICOM) 36,433 - 36,433 - 

(v) Amounts due from subsidiaries: 

EON Properties Sdn Bhd - - 69,271 71,889 

Euromobil Sdn Bhd - - 26,931 23,676 

EON Auto Mart Sdn Bhd - - 78,198 83,183 

EONMobil Sdn Bhd - - 5,097 6,409 

(vi) Allowance for doubtful debts on amounts due 

from subsidiaries: 

EON Auto Mart Sdn Bhd - - (50,761) (65,372) 

EONMobil Sdn Bhd - - (4,246) (3,786) 

(c) Significant transactions with key management 

(i) Key management personnel compensation: 

- salaries, bonus and allowances 1,259 1,779 1,259 1,779 

- defined contribution plan 197 271 197 271 

- staff separation scheme - 1,200 - 1,200 

(ii) Sale of motor vehicles 124 308 124 - 

(d) There are no significant balances with key management. 

www.eon.com.my


31 MARCH 2009 

34 CAPITAL CommITmENTS 

Capital expenditure for property, plant and equipment: 



GRoUP ComPANy 

31.3.2009 31.3.2008 31.3.2009 31.3.2008 

Rm’000 Rm’000 Rm’000 Rm’000 

Approved and contracted for 1,216 902 1,024 902 

Approved but not contracted for 27,739 14,741 15,351 14,741 

28,955 15,643 16,375 15,643 

The capital commitments relating to jointly controlled entities and associates are disclosed in Note 17 and Note 18 to the financial 

statements respectively. 

35 SEGmENT REPoRTING 

The Group does not prepare segmental reporting as its activities, which are substantially carried out in Malaysia are focused on the automotive 

sector. The activities of the automotive sector include the marketing of motor vehicles and related spare parts, and servicing of vehicles. 

36 CoNTINGENT LIABILITIES 

The Group did not have any contingent liability as at 31 March 2009 (2008: nil). 

The contingent liabilities relating to jointly controlled entities and associates are disclosed in Note 17 and Note 18 to the financial 

statements respectively. 

37 FoRWARD FoREIGN EXCHANGE CoNTRACTS 

Forward foreign exchange contracts are entered into by the Group in currencies other than their functional currencies to manage exposure to 

fluctuation in currency exchange rate on specific transactions. 

At 31 March 2009, the settlement dates on open forward contracts ranged between 1 and 2 months (2008: 1 and 2 months). The foreign 

currency amount to be paid and the average contractual exchange rates of the Group’s outstanding contracts are as follows: 

Average 

Currency Rm’000 Contractual 

Hedged item to be received equivalent rate 

31 March 2009 

Payables Japanese Yen 12,135 100Yen = RM3.78 

Euro 4,687 EURO 1 = RM4.886 

31 March 2008 

Payables Japanese Yen 42,872 100Yen = RM3.26 

Euro 697 EURO 1 = RM4.859

37 FoRWARD FoREIGN EXCHANGE CoNTRACTS (cont’d) 

The net unrecognised loss at 31 March 2009 on open contracts which hedge anticipated future foreign currency purchases amounted to 

approximately RM42,000 (2008: net unrecognised gain of approximately RM34,000). These net exchange losses are deferred until the related 

purchases are transacted, at which time they are included in the measurement of such transactions. 

38 FAIR VALUES 

The fair values of monetary financial assets and liabilities of the Group and Company at the balance sheet date with maturity of less than 

one year approximate their carrying amounts. 

39 SIGNIFICANT EVENTS DURING THE FINANCIAL yEAR 

Significant events during the financial year are as follows: 

(i) The Group exited from Hyundai dealership with effect from 1 July 2008. 

(ii) The dealership agreement with Suzuki Malaysia Automobile Sdn Bhd expired on 28 February 2009 and the Group has surrendered the 

dealership with effect from 1 April 2009. 

(iii) On 30 March 2009, the Group entered into a voluntary termination agreement with Volkswagon Group Malaysia Sdn Bhd to early 

terminate the dealership with effect from 31 March 2009. 

40 EVENT AFTER THE BALANCE SHEET DATE 

On 8 May 2009, the Company entered into a Master Dealership Agreement (“Agreement”) with Proton Edar Sdn Bhd (“EDAR”) which 

includes amongst others, the rationalisation of the sales and service centres between the Company and EDAR with the purpose of improving, 

strengthening and developing the dealer networks (“Proposed Rationalisation”). 

Amongst the terms of the Agreement, all sales and service dealers currently under the Company shall migrate to EDAR not later than 31 

December 2009. In addition, the Company shall reduce its sales branches from the existing forty (40) to thirty two (32) on or before 31 

December 2010. 

It is expected that arising from the migration of sales and service dealers to EDAR, the Company will record lower earnings for the forthcoming 

financial year. However, it is expected to be mitigated by the cost savings from the Proposed Rationalisation as well as other cost reduction 

initiatives to be carried out by the Company. 

The Agreement is subject to the execution of a Sales Operations Agreement and a Service Operations Agreement on or before 30 June 2009. 

The said subsequent event does not have any material impact on the financial statements for the financial year ended 31 March 2009. 



www.eon.com.my



Analysis of Shareholding 099 

List of Thirty (30) Largest Shareholders 101 

Material Properties of EON Group 102 

EON – Branches 104 

Euromobil – Branches 105 

EON Auto Mart – Branches 107 

Corporate Directory 108 

Proxy Form •

anaLysis oF sHareHoLdinG 

AS AT 30 JUNE 2009 

Class of Shares : Ordinary shares of RM1.00 each fully paid 

Voting Rights : One vote per share 

Number of 

Size of shareholding Shareholders Percentage Shareholding Percentage 

Less than 100 69 2.75 1,048 0.00 

100 – 1,000 1,106 44.10 968,562 0.39 

1,001 – 10,000 1,196 47.69 3,967,883 1.59 

10,001 – 100,000 122 4.86 3,184,300 1.28 

100,001 – less than 5% of issued shares 12 0.48 13,872,300 5.57 

5% and above of issued shares 3 0.12 226,998,730 91.17 

SubStantial ShareholderS as at 30 June 2009 


2009 Annual Annual Report Report 2009 

2,508 100 248,992,823 100.00 

DIRECT INDIRECT 

No. of Shares % No. of Shares % 

Shareholder Held Held Held Held 

HICOM Holdings Berhad (HICOM) 196,845,330 79.05 – – 

Mega Consolidated Sdn Bhd – – 196,845,330 (a) 79.05 

DRB-HICOM Berhad – – 196,845,330 (a) 79.05 

Gadek (Malaysia) Berhad – – 196,845,330 (a) 79.05 

Etika Strategi Sdn Bhd – – 196,845,330 (a) 79.05 

Tan Sri Dato’ Seri Syed Mokhtar Shah bin Syed Nor – – 196,845,330 (a) 79.05 

Kualapura (M) Sdn Bhd 30,153,400 12.11 – – 

Rin Kei Mei – – 30,153,400 (b) 12.11 

Rin Nan Lun – – 30,153,400 (b) 12.11 

Mitsubishi Corporation – – 30,153,400 (b) 12.11 

Notes: 

(a) Deemed interest through HICOM. 

(b) Deemed interest through Kualapura (M) Sdn Bhd. 

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anaLysis oF sHareHoLdinG (cont’d.) 


directorS’ direct and indirect intereSt in ShareS in the company and itS related companieS 

The Directors’ direct and indirect interest in shares in the Company and its related companies based on the Register of Directors’ Shareholding 

are as follows: 



DIRECT INTEREST INDIRECT INTEREST 

Name No of shares % of issued No. of shares % of issued 

held shares held shares 

Shares in the Company held by: - - 30,153,400 12.11 

Rin Nan Lun* 

Shares in Etika Strategi Sdn Bhd 30,000 10 - - 

(Ultimate Holding Company) held by: 

Y Bhg Datuk Haji Mohd Khamil bin Jamil 

Shares in DRB-HICOM Berhad 26,500 0.0001 - - 

(Penultimate Holding Company) held by: 

Y Bhg Datuk Syed Hisham bin Syed Wazir 

* Deemed interest through Kualapura (M) Sdn Bhd. 

None of the other Directors in office as at 30 June 2009 held any interest in shares in the Company or its related companies.

List oF tHirty (30) LarGest sHareHoLders 


No Name Shareholding Percentage 

1 Mayban Nominees (Tempatan) Sdn Bhd 

[ Pledged Securities Account for HICOM Holdings Berhad ] 122,127,330 49.05 

2 HICOM Holdings Berhad 74,718,000 30.00 

3 Kualapura (M) Sdn Bhd 30,153,400 12.11 

4 Permodalan Nasional Berhad 8,866,800 3.56 

5 HSBC Nominees (Asing) Sdn Bhd 

[ Exempt A/C for JPMorgan Chase Bank, National Association ] 1,969,500 0.79 

6 Lembaga Tabung Angkatan Tentera 1,475,000 0.59 

7 Hong Yeam Wah 377,300 0.15 

8 Hong Weng Hwa 226,100 0.09 

9 HSBC Nominees (Asing) Sdn Bhd 

[ HSBC-FS 1 for Prudential Financial Asia Pacific Fund ] 196,000 0.08 

10 BH Insurance (M) Bhd 150,000 0.06 

11 Perbadanan Pembangunan Ekonomi Sabah (Sedco) 150,000 0.06 

12 Lim Soo Hian 131,500 0.05 

13 Lim Kuan Gin 118,100 0.05 

14 Progressive Insurance Bhd 107,000 0.04 

15 Minister of Finance 

[ Akaun Jaminan Pinjaman Kerajaan Persekutuan ] 105,000 0.04 

16 M’sian Vermicelli Manufactures (M) Sdn Bhd 100,000 0.04 

17 Hamidah binti Abdul Rahman 100,000 0.04 

18 Hong Tian Hua 94,000 0.04 

19 Public Nominees (Tempatan) Sdn Bhd 

[ Pledged Securities Account for Lam Ching Yew ] 90,000 0.04 

20 Shin Eun Sook 81,000 0.03 

21 Chia Thuan Leang 73,000 0.03 

22 Khalil bin Haji Hussain 70,000 0.03 

23 BH Insurance (M) Bhd 65,000 0.03 

24 Ong Keh Eon 62,600 0.03 

25 Lim Soo Thean 61,800 0.02 

26 Juliet Yap Swee Hwang 60,000 0.02 

27 Wong Kim Poh 56,000 0.02 

28 Yit Teng Yuet 52,000 0.02 

29 Zuta Jaya Sdn Bhd 50,000 0.02 

30 Kamalanathan a/l Ratnam 50,000 0.02 



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materiaL properties oF eon GroUp 

AS AT 31 MARCH 2009 

Approximate Net Book Value 

Approximate Age of (As At 31 

Land Area Property Date of march 2009) 

No. Location (Sq. Ft.) (years) Acquisition Description Tenure Rm’000 

1 H.S. (D) 136184/P.T. No. 2 185,566 16 30 December 1992 Property used for the following Freehold 29,662 

Town of Glenmarie purposes: 

District of Petaling & State of Selangor i) Main building used as EON’s 

No. 2, Persiaran Kerjaya Headquarters and Showroom. 

Glenmarie Industrial Park ii) Amenities block used as 

Shah Alam, Selangor. canteen, gymnasium, 

Sports Club house and 

maintenance store. 

2 H.S. (D) 102181, P.T. 15994 140,999 5 23 September 2002 Double storey building for Freehold 24,978 

Mukim Of Damansara Showroom and Workshop. 

District of Petaling & State of Selangor 

No. 27, Jalan Pelukis U1/46 

Temasya Industial Park 

Shah Alam, Selangor. 

3 Lot 3893, Mukim Ulu Kinta, 230,035 11 21 July 1995 5 blocks of building used as Leasehold 14,407 

District of Kinta, Showroom and Sales Office, (Expiring on 

Perak Workshop and Parts Centre. 3 January 2895) 

4 Lot 1101, 1510, 1511 & 1512, 80,113 12 18 November 1992 2 storey building with Freehold 14,098 

Lot 1100, Section 9W Georgetown, 12,932 13 July 1995 basement carpark used as Leasehold 

North East District, Penang. Showroom and Sales Office, (Expiring on 

No. 1A, Jalan Makloom, Workshop and Parts Centre. 2 March 2093) 

Penang 

5 H.S. (D) 102182, P.T. 15995 100,423 - 23 September 2002 Industrial Land Freehold 11,757 

Mukim Of Damansara 

District of Petaling & State of Selangor 

No. 29, Jalan Pelukis U1/46 

Temasya Industial Park 


6 Lot 9587, Mukim 12, 122,540 7 15 August 1995 Single storey building used as Freehold 10,521 

South West District, Showroom & Stockyard 

Penang. 

No. 198, Jalan Sultan Azlan Shah, 

11900 Bayan Lepas, 

Pulau Pinang. 

7 Lot 164 & 165, Section 92, 105,057 17 10 February 1992 Single storey detached Freehold 10,130 

Town & District of Kuala Lumpur, warehouse annexed to double 

Wilayah Persekutuan. storey office building used as 

No. 188, Jalan Sungai Besi, Showroom and Sales Office, 

Kuala Lumpur. Workshop and Parts Centre. 

8 Lot 262, Mukim 1, 102,392 14 7 January 1993 2 storey building adjoining to Freehold 7,290 

Jalan Kikik, Taman Inderawasih, single storey building used as 

Prai, Penang. Showroom and Sales Office, 

Workshop and Parts Centre. 


2009 Annual Report

Approximate Net Book Value 

Approximate Age of (As At 31 

Land Area Property Date of march 2009) 

No. Location (Sq. Ft.) (years) Acquisition Description Tenure Rm’000 

9 Lot 9818, Persiaran Mohagany, 69,795 16 10 June 1992 2 storey office building adjoining Freehold 5,667 

Bandar Sri Damansara, to single storey building used as 

Mukim Sungai Buloh, Showroom and Sales Office, 

Selangor. Workshop and Parts Centre. 

10 Lot 13303, Mukim Simpang Kanan, 154,028 12 12 September 1994 Single storey office annexed to Freehold 5,622 

District of Batu Pahat, single storey building used as 

Johor Darul Takzim. Showroom and Sales Office, 

No. 700, Jalan Bukit Pasir, Workshop and Parts Centre. 

Mukim Simpang Kanan, 

Batu Pahat, 

Johor. 



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eon – brancHes 

No Branch Address Phone Fax 

NORTHERN REgION 

1 Ipoh I Lot 3893, Jalan Tunku Abdul Rahman, 30010 Ipoh, Perak. 05-506 1666 05-506 0666 

2 Ipoh II No. 148, Jalan Raja Permaisuri Bainun, 30250 Ipoh, Perak. 05-255 2805 05-255 9555 

3 Sitiawan Lot 29526 & 29527, Bandar Baru Seri Manjung, Daerah Manjung, Perak. 05-688 5873 05-688 1702 

4 Telok Intan No. 89, Jln Changkat Jong, 36000 Telok Intan, Perak. 05-621 1642 05-621 1642 

5 Taiping Lot P.T.790, Batu 2 1/2, Jalan Simpang, 34000 Taiping, Perak. 05-847 3888 05-847 3890 

6 Georgetown Ground Floor, Bangunan Persatuan Melayu Pulau Pinang, 

117, Jalan MacAlister, 10400, Penang. 

04-226 6044 04-227 6314 

7 Bayan Baru No. 198, Sg Tiram, Jalan Sultan Azlan Shah, 11900, Pulau Pinang. 04-642 3853 04-642 4001 

8 Butterworth Lot 262, Mukim 1, Jalan Kikik Taman Inderawashi, 13700, Prai Penang. 04-390 8900 04-399 4224 

9 Alor Setar No. 210, Jln. Gangsa Mergong II, 05150 Alor Star, Kedah. 04-733 8188 04-731 9704 

10 Sg Petani C25 & C26, Lorong 8, Tmn Sejati Indah, 08000 Sg Petani, Kedah. 04-431 1924 04-431 1411 

11 Langkawi Lot 3402, Mukim Kuah, Jalan Padang Gaong, 07000 Pulau Langkawi, Kedah. 04-966 6118 04-966 6995 

KLANg VALLEY 

12 Ampang No. 10a & 10b, Pusat Commercial Ara Ampang, Jalan Ampang, 

68000 Selangor. 03-4251 0888 03-4251 0167 

13 Chan Sow Lin No. 188, Jalan Sg Besi, 57100 Kuala Lumpur. 03-9222 3633 03-9221 2791 

14 Cheras 29, Jln Mutiara Raya, Tmn Mutiara, Batu 6, Jln Cheras, 56000 Kuala Lumpur. 03-9130 5511 03-9132 7116 

15 Kepong Lot 9818, Persiaran Mohagani, Seksyen 7, Bandar Sri Damansara, 

52100 Kepong, Selangor. 

03-6276 3401 03-6276 7298 

16 Jln 222 No. 2, 4 & 6, Seksyen 51a, Jalan 222, 46100 Petaling Jaya, Selangor. 03-7956 3822 03-7957 3249 

17 Banting No. 40, Jalan Besar, 42700 Banting, Selangor. 03-3181 4667 03-3181 4678 

18 Glenmarie & PSS Eon Head Office Complex, Jln Kerjaya, Seksyen Utara Satu, 40000 Shah Alam. 03-7711 2211 03-7803 6690 

SOUTHERN REgION 

19 Seremban Lot 915, Jalan Tuanku Antah, 70100 Seremban. 06-762 9158 06-762 7911 

20 Melaka No. 3530, Jln Batu Hampar Peringgit, 75320 Melaka. 06-283 2225 06-283 2121 

21 Segamat No. 42 & 43, Jln Genuang Kampung, 85000 Segamat, Johor. 07-931 8188 07-931 9248 

22 JB 1 No. 60, Jln Langkasuka, Kawasan Perusahaan Dato’ Onn, 

80350 Johor Bahru, Johor. 07-238 8199 07-238 8033 

23 JB 2 No. 79 & 81, Jln Rosmerah 2/2, Taman Johor Jaya, 81100 Johor Bahru, Johor. 07-354 9919 07-354 5929 

24 Batu Pahat No. 700 (Lot 13303), Jalan Bukit Pasir, Mukim Simpang Kanan, 

83000 Batu Pahat, Johor. 

07-431 5511 07-431 9266 

25 Muar Lot 1462, Jalan Bakri, 84000 Muar, Johor Darul Takzim. 06-951 5130 06-952 5081 

26 Kulai Lot 1151, Jalan Kasturi 36/41, Indahpura Car City, 81000 Kulai, Johor. 07-663 4122 07-663 7228 

27 Kluang No. 15, Jalan Bintang Satu, Taman Bintang, 86000 Kluang, Johor. 07-772 3100 07-772 3102 


2009 Annual Report


EAST COAST 

28 Kuantan B4342 & B4344, Jalan Beserah, 25300 Kuantan, Pahang. 09-566 6133 09-566 5196 

29 Temerloh Lot 339, Jalan Kuantan, 28000 Temerloh, Pahang. 09-296 1166 09-296 3176 

30 K.Trengganu 31-E/1, Jalan Bkt Kechil, 21100 Kuala Trengganu, Trengganu. 09-623 3411 09-623 3414 

31 Kota Bharu Lot 249-253, Section 25, Langgar, Jalan Sultan Yahya Petra, 

15200 Kota Bahru, Kelantan. 09-744 9466 09-744 9442 

SABAH 

32 Kota Kinabalu - I Miles 5 1/2, Jln Tuaran, Inanam 88806, Kota Kinabalu, Sabah. 088-421 222 088-421 223 

33 Kota Kinabalu - II Shop Unit No 2-0-10 & 2-1-10, Api-Api Centre, Lorong Api-Api, 

Jln Centrepoint, 88000 Kota Kinabalu, Sabah. 088-223 472 088-233 075 

34 Tawau H & C Building, Ground Floor, No. 1229, Jln Dunlop, 91000 Tawau, Sabah. 089-772 398 089-761 513 

35 Sandakan Lot 1, Block A, Bandar Pasaraya, Mile 4, Jalan Utara, 90000 Sandakan, Sabah. 089-271 377 089-273 005 

36 Lahad Datu MDLD 3295, Block 4, Fajar Centre, 91100 Lahad Datu, Sabah. 089-882 694 089-883 695 

SARAwAK 

37 Kuching I No. 1, 2 & 3, Ground Floor, Lot 308, 3rd Mile, Rock Road, 

93200 Kuching, Sarawak. 082-252 688 082-252 668 

38 Sibu No. 25 B & C, Lanang Road, 96000 Sibu, Sarawak. 084-331 337 084-331 369 

39 Miri Lot 860, Jalan Krokop Utama, 98000 Miri,Sarawak. 085-656 996 085-651 331 

40 Bintulu Lot 704, Block 31, Light Industrial Estate, 2 1/2, Mile Bintulu-Miri Road, 

97008 Bintulu, Sarawak. 086-336 001 086-336 036 



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eUromobiL – brancHes 

Euromobil 

Name Address Phone Fax 

Audi Hangar Audi Hangar Glenmarie, Lot 27, Jalan Pelukis U1/46, 03–7688 7688 03–7628 0028 

Seksyen Utara Satu, Kawasan Perindustrian Temasya, 

40150 Shah Alam. 

Penang Branch 1679-G2 & 1679-F2A, Jalan Perusahaan Auto City, 04–510 0021 04–510 0022 

North-South Highway, Juru Interchange, 

13600 Prai, Penang. 


2009 Annual Report

eon aUto mart – brancHes 


1 Petaling Jaya No 9, Jalan SS 2/75, 47300 Petaling Jaya, Selangor. 03-7877 8333 03-7877 3930 

2 Glenmarie 2, Persiaran Kerjaya, Taman Perindustrian Glenmarie, 03-7711 2131 03-7806 3426 

Seksyen U1, 40150 Shah Alam, Selangor. 

3 Ampang No. 2A & 3A, Pusat Komersial Ara Ampang, 03-4253 5866 03-4260 1089 

68000 Ampang, Selangor. 

4 Malacca 86-1 & 86-A1, Jalan Laksamana Cheng Ho, 75050 Malacca. 06-292 6752/06-292 1534 06-282 6482 

5 Johor Bahru 85, Jalan Rosmerah 2/2, Taman Johor Jaya, 81100 Johor Bahru. 07-357 4388/8588 07-352 4288 

6 Butterworth Lot 262, Mukim 1, Jalan Kikik, Taman Inderawasih, 04-380 1616 04-397 0472 

13700 Prai, Penang. 

7 K.Kinabalu A-G-1 & A-G-2, Block A,Tanjung Aru Plaza, Jalan Mat Salleh, 088-255 150 088-255 160 

88300 Tanjung Aru, Kota Kinabalu. 

8 Sandakan TL 077504726, Mile 1 1/2, Jalan Utara, 90007 Sandakan, Sabah. 089-221 230/237 089-222 304 

9 Tawau TB 4655, Km. 2, Kuhara Road, 91000 Tawau, Sabah. 089-754 448/5558/6668 089-752 223 

10 Kuching No 5, 6 & 7 (Grd. Floor), Lot 308, Block 16, 082-230 670/71/72/73 082-230 833 

Kuching Central Land District (KCLD), Rock Road, 93250 Kuching, 

Sarawak. 

11 Miri Lot No. 1262 & 1263, (Ground Floor), Malay Street, 085-420 243/44/42/88 085-420 241 

Miri Centre Point, Phase 1, 98000 Miri Central Land District (MLCD), 

Sarawak. 

12 Bintulu No. 106 & 107, (Ground Floor), Bintulu Parkcity Commerce Square, 086-332 724/ 086-317 360 

Jalan Tun Ahmad Zaidi, 97013 Bintulu, Sarawak. 317 068/318 691 

13 Labuan Lot 1, Jalan Tun Mustapha, 87007 Labuan. 087-415 650 / 1 087-415 649 



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corporate directory 

SUBSIDIARIES: 

1. Euromobil Sdn Bhd Audi Centre Glenmarie 

(Marketing of Audi motor vehicles and related spare parts Lot, 27, Jalan Pelukis U1/46, Kawasan Perindustrian Temasya, 

and servicing of vehicles) Seksyen U1, 40150 Shah Alam, Selangor. 

2. EoN Auto mart Sdn Bhd EON Head Office Complex, No. 2, Persiaran Kerjaya, 

(Marketing of the Mitsubishi motor vehicles and related spare Taman Perindustrian Glenmarie, Seksyen U1, 40150 

parts, and provision of after sales services) Shah Alam, Selangor. 

3. Automotive Conversion Engineering Sdn Bhd Lot 23B, Lorong Keluli 1C, 

(Conversion and modification of motor vehicles and marketing Kawasan Perindustrian Bukit Raja Selatan, 

of car accessories) Seksyen 7, 40150 Shah Alam, Selangor. 

4. EoN Properties Sdn Bhd EON Head Office Complex, No. 2, Persiaran Kerjaya, 

(Investment and management of properties) Taman Perindustrian Glenmarie, Seksyen U1, 40150 


JoINTLy CoNTRoLLED ENTITIES: 

1. mitsubishi motors malaysia Sdn Bhd Level 6, Building A, Peremba Square, Saujana Resort, 

(Distribution of motor vehicles, vehicle components, spare Seksyen U2, 40150 Shah Alam, Selangor. 

parts and accessories) 

2. Proton Parts Centre Sdn Bhd No.1, Jalan Arkitek, U1/22, Seksyen U1, HICOM Glenmarie 

(Warehousing and distribution of motor vehicle spare parts Insdustrial Park, P.O Box 7400, 40150 Shah Alam, Selangor. 

and accessories) 

ASSoCIATES: 

1. SRT–EoN Security Services Sdn Bhd Wisma Rahmat, 54, Jalan SS6/14, Kelana Jaya, 

(Provision of security services) 47301 Petaling Jaya, Selangor. 

2. HICom megah Sdn Bhd Level 1, Wisma DRB–HICOM, No.2, Jalan Usahawan U1/8, 

(Property Development and investment holding) Seksyen U1, 40150 Shah Alam, Selangor. 

3. Johnson Controls Automotive Holding (m) Sdn Bhd Lot, 5, Persiaran Sabak Bernam, Seksyen 26, 

(Manufacturing of car seats, seat paddings, steering wheels 40000 Shah Alam, Selangor. 

and other car interior parts for the group and investment 

holding and property letting for the company) 


2009 Annual Report

proxy Form 

I/We, 

of 

being a member/members of EDARAN oTomoBIL NASIoNAL BERHAD, hereby appoint the Chairman of the Meeting 

or 

of 

as my/our proxy to vote for me/us on my/our behalf at the Twenty-Fifth Annual General Meeting of the Company which will be held at The 

Glenmarie Ballroom, Holiday Inn Glenmarie Kuala Lumpur, No. 1, Jalan Usahawan U1/8, Seksyen U1, 40250 Shah Alam, Selangor Darul Ehsan 

on Thursday, 20 August 2009 at 11.00 a.m. and at any adjournment thereof. 

My/Our proxy is to vote as indicated below: 

No. RESoLUTIoNS RESoLUTIoN FoR AGAINST 

1. Adoption of the Reports of the Directors and Auditors and the Audited Financial 

Statements for the financial year ended 31 March 2009. Resolution 1 

2. Declaration of a final gross dividend of 2 sen per share less Income Tax at 25%. Resolution 2 

3. Re-Election of Directors 

Under Article 103: 

i. Y Bhg. Datuk Aziyah binti Bahauddin Resolution 3 

ii. Y Bhg. Datuk Haji Mohd Khamil bin Jamil Resolution 4 

Under Article 110: 

i. Mr. Ooi Teik Huat Resolution 5 

ii. Encik Lukman bin Ibrahim Resolution 6 

4. Re-appointment of Y Bhg. Tan Sri Saw Huat Lye under Section 129, Companies 

Act, 1965. Resolution 7 

5. Approval of the Directors’ fees amounting to RM515,858.00. Resolution 8 

6. Re-appointment of PricewaterhouseCoopers as Auditors. Resolution 9 

7. Renewal of Shareholders’ Mandate on recurrent related party transactions. Resolution 10 

(Please indicate with “X” how you wish to cast your vote) 

Signed this _____________ day of __________________ 2009. 

CDS Account No. 

No. of Shares 

Signature/Seal 

Notes : 

i. A member of the Company entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend and vote in his stead. A proxy need not be 

a member of the Company. 

ii. The instrument appointing the proxy must be deposited at the Office of the Registrar, Shareworks Sdn Bhd, No. 10-1, Jalan Sri Hartamas 8, Taman Sri Hartamas, 

50480 Kuala Lumpur not less than 48 hours before the time appointed for holding the meeting. 

Edaran OtOmObil nasiOnal bErhad (119767-X) 


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Fold here 

Fold here 

Resilient 

and F cused 

Edaran OtOmObil nasiOnal bErhad (119767-X) 

Annual Report 2009 

The Registrar 

ShareWorks Sdn Bhd 

No. 10-1, Jalan Sri Hartamas 8 

Taman Sri Hartamas 

50480 Kuala Lumpur 

AFFIX 

STAmP

Level 5, Wisma DRB-HICOM 

No. 2, Jalan Usahawan U1/8 

Seksyen U1, 40150 Shah Alam 


Tel : 03-2052 8136 

Fax : 03-2052 8099 

www.eon.com.my 

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