cover rationale - ChartNexus

30 LONG TERM LIABILITIES
Group Company
2002 2001 2002 2001
RM'000 RM’000 RM'000 RM'000
Deferred liability (Note 31) 3,973 17,410 - -
Hire purchase and lease creditors
due after 12 months (Note 26) 7,519 13,887 2,806 3,780
11,492 31,297 2,806 3,780
31 DEFERRED LIABILITY
In 1996, a subsidiary of the Company entered into a concession agreement with the
Government of Malaysia and Syarikat Tanah dan Harta Sdn. Bhd. to carry out the design and
construction works on the Kuala Lumpur central railway station in consideration for which the
subsidiary is given the right to develop and/or sell certain commercial development land in
the vicinity of the central railway station. The subsidiary capitalised the commercial land
alienated to them by the Federal Government at RM420.0 million under development
properties and provided for its cost as a deferred liability representing the estimated cost of
the design and construction of the abovementioned central railway station. This deferred
liability is reduced progressively as and when the cost is incurred in respect of the central
railway station.
Pursuant to the Supplementary Agreement to the Concession Agreement with the
Government of Malaysia and Syarikat Tanah dan Harta Sdn. Bhd., the transfer of title of the
sub-divided plot of land within the commercial development land to the subsidiary shall be
effected in stages based on the actual physical progress of the construction works on the
central railway station.
32 SHARE CAPITAL
Authorised:
Group and Company
2002 2001
RM'000 RM'000
2,000,000,000 ordinary shares of RM1.00 each 2,000,000 2,000,000
Issued and fully paid:
Ordinary shares of RM1.00 each:
At 1 September 976,550 975,096
Exercise of Options under ESOS - 1,454
At 31 August 976,550 976,550
The exercise of Options under ESOS in 2001 was under the Malaysian Resources
Corporation Berhad’s Employees’ Share Option Scheme that was approved by the
shareholders at the Extraordinary General Meeting held on 9 February 1996 and became
effective on 4 April 1996 for a duration of five (5) years commencing on that date and
expired in the previous financial year on 3 April 2001.
Laporan Tahunan 2002 Annual Report
NOTES TO THE FINANCIAL STATEMENTS 31 AUGUST 2002 (CONTINUED)
131