HING YIAP KNITTING INDUSTRIES BERHAD · 4 hing yiap knitting industries berh a d annual re p o r t 2000 2 2 4 1 4 - V incorporated in Malaysia C o m m i t t e e Audit MEMBERS OF THE

HING YIAP KNITTING INDUSTRIES BERHAD(Company No: 22414-V)

( Incorporated in Malays ia )

Notice of Annual General Meeting 2

Corporate Information 3

Audit Committee 4

Chairman’s Statement 6

Directors’ Report 8

Statement by Directors 14

Statutory Declaration 14

Report of the Auditors to the Members 15

Balance Sheets 16

Statement of Changes in Equity 17

Income Statements 18

Cash Flow Statements 19

Notes to the Accounts 21

Shareholdings Statistics 40

List of Properties 43

Proxy Form 45

C ontents

2 hing yiap knitting industr ies berh a d

Annual General MeetingNotice Of

annual re p o rt 2000 2 2 4 1 4 - V incorporated in Malaysia

NOTICE IS HEREBY GIVEN THAT the Twenty-Fifth Annual General Meeting of the members will be held at Bilik Kelantan, Putra

World Trade Centre, 41, Jalan Tun Ismail, 50480 Kuala Lumpur on Thursday, 21 December 2000 at 10.00 a.m. for the following

purposes:-

1. To receive and consider the Audited Accounts for the financial year ended 30 June 2000

together with the Reports of the Directors and Auditors thereon.

2. To declare a first and final dividend of 5% less income tax of 28% for the financial year ended

30 June 2000.

3. To approve Directors' fees of RM204,000 for the financial year ended 30 June 2000.

4. To consider and if thought fit, to pass the following resolution pursuant to Section 129(6) of

the Companies Act, 1965:

"THAT Madam Sze Tho Pooi Lin, who is over the age of seventy years and retiring in

accordance with Section 129(6) 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 Annual General

Meeting of the Company."

5. To re-elect Mr. Chi Kin Meng who retires as a Director of the Company pursuant to Article

84 of the Company's Articles of Association.

6. To re-elect Mr. Khoo Henn Kuan who retires as a Director of the Company pursuant to Article


7. To re-elect Madam Foo Yak Chu who retires as a Director of the Company pursuant to Article


8. To re-appoint Messrs Sekhar & Tan as Auditors of the Company to hold office until the

conclusion of the next Annual General Meeting at a remuneration to be determined by the

Directors.

BY ORDER OF THE BOARD

LIM BOON SIANG

CHEN KEOW CHING

Company Secretaries

Kuala Lumpur

Dated: 6 December 2000

NOTES

(1) A member entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies (but not more than two) to attend and vote in

his stead. Where a member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportions of his holdings to

be represented by each proxy. A proxy may but need not be a member of the Company. If a proxy is granted to a non-member of the

Company, he must be, under the provisions of Section 149(1)(b) of the Companies Act, 1965, an advocate, an approved company auditor or

a person approved by the Registrar of Companies.

(2) The instrument appointing a proxy must reach the Registered Office of the Company at Lots 59-60, Lorong Kuang Bulan, Taman Kepong,

52100 Kuala Lumpur, not less than forty-eight (48) hours before the time set for the meeting or any adjournment thereof.

Notice of book closure and payment of dividends

(3) The notice for the book closure and the date of payment of dividends will be announced at a later date.

(Resolution 1)

(Resolution 2)

(Resolution 3)

(Resolution 4)

(Resolution 5)

(Resolution 6)

(Resolution 7)

(Resolution 8)

3hing yiap knitting industries berh a d

I n f o rm a t i o nC o r p o r a t e


BOARD OF DIRECTORS Dato’ Azizi Yom Ahmad (Chairman)

Chi Oi Meng (Executive Deputy Chairman)

Khoo Henn Kuan (Chief Executive Officer)

Chi Kin Meng (Executive Director)

Foo Yak Chu

Dato’ Paduka Professor Dr. Khairuddin

bin Mohamed Yusof

Sze Tho Pooi Lin

AUDIT COMMITTEE Dato’ Paduka Professor Dr. Khairuddin (Chairman, Independent Non-

bin Mohamed Yusof Executive Director)

Foo Yak Chu (Independent Non-Executive Director)

Chi Oi Meng (Non-Independent Executive Director)

SECRETARIES Lim Boon Siang

Chen Keow Ching

REGISTERED OFFICE Lots 59-60, Lorong Kuang Bulan

Taman Kepong

52100 Kuala Lumpur

Tel: 03-6276 6633

REGISTRAR Lawco Corporate Services Sdn Bhd

Suite 9.06, Level 9

Wisma Technip

241, Jalan Tun Razak

50400 Kuala Lumpur

Tel: 03-248 2368

AUDITORS Sekhar & Tan

Suite 9.05, Level 9

Wisma Technip

241, Jalan Tun Razak

50400 Kuala Lumpur

SOLICITORS Azhar & Goh

BANKERS Malayan Banking Berhad

Arab-Malaysian Bank Berhad

United Overseas Bank (Malaysia) Bhd

Hong Leong Bank Berhad

STOCK EXCHANGE Kuala Lumpur Stock Exchange

Second Board (21 February 1997)

STOCK CODE AND 7722 (International Securities Identification Number

STOCK NAME (ISIN): MYL7722OO001); Hingyap

4 hing yiap knitting industries berh a d


C o m m i t t e eAudit

MEMBERS OF THE AUDIT COMMITTEE

Dato’ Paduka Professor Dr. Khairuddin bin Mohamed Yusof (Chairman, Independent Non-Executive Director)

Foo Yak Chu (Independent Non-Executive Director)

Chi Oi Meng (Non-Independent Executive Director)

ROLE OF THE AUDIT COMMITTEE

1. Assisting the Board of Directors in the discharge of their statutory duties and responsibilities in the following areas:

- Preparation of financial statements that give a true and fair view of the Group’s affairs and results.

- Manage the Group’s affairs in compliance with laws and regulations and proper standards of conduct.

- Establishment and maintenance of internal controls for areas of risks to provide reasonable and reliable

financial information.

2. Provide, by way of regular meetings, a line of communication between the Board and the internal and external

auditors.

3. Enhance the perceptions held by other interested parties (shareholders, regulators, creditors, etc) of the credibility

and objectivity of financial reports.

TERMS OF REFERENCE

1. Membership

The Committee shall be appointed by the Board from amongst the Directors of the Company and shall consist of not less

than three (3) members with a majority of non-executive directors. A non-executive member shall not have any family

relationship with an executive director of the Company or of any related company or any relationship which, in the opinion

of the Board, would interfere with his/her independent judgement.

The Chairman of the Committee shall be elected by the members of the Committee and shall be a non-executive member.

2. Attendance at Meetings

The heads of finance and internal audit and a representative of the external auditors shall normally attend meetings.

The Company Secretary shall be the secretary of the Committee.

The quorum necessary for the transaction of business of the Audit Committee Meeting may be fixed by the members and

unless so fixed, shall be two (2), which shall comprise at least one (1) non-executive member.

3. Frequency of Meetings

The Committee shall meet at least twice during each financial year and hold such additional meetings as the Chairman shall

deem necessary in order to fulfill its duties.

4. Proceedings of Meetings

In the absence of the Chairman, the Committee shall appoint one (1) of the non-executive members to chair that meeting.

Questions arising at any meeting shall be decided by a majority of votes of the members present. Save that where two (2)

members form a quorum or that which only two (2) members are competent to vote on the question in issue, the vote of

the non-executive director shall be the decision of the Committee.

5hing yiap knitting indust ries berh a d


Committee (Cont’d)

A u d i t

5. Authority

The Committee is authorised by the Board to investigate any activity within its terms of reference. It is authorised to seek

any information it requires from any employee and all employees are directed to cooperate with any request made

by the Committee.

The Committee is authorised by the Board to obtain outside legal or other independent professional advice and to secure

the attendance of outsiders with relevant experience and expertise if it considers this necessary.

6. Duties

The duties of the Committee shall be:

- To recommend the appointment of the external auditors, the audit fee, and any other terms of engagement.

- To discuss with the external auditors on their audit plan before the commencement of the annual audit and ensure

coordination where more than one audit firm is involved.

- To review the quarterly financial reports and annual financial statements before submission to the Board.

- To discuss with the external auditors the problems and reservations arising from the annual audits.

- To review the internal audit programme, consider major findings of internal audit investigations and management’s

responses as well as to monitor the implementation of the recommendations of the internal auditors, and review

the level of coordination between the internal and external auditors.

- To keep under review the effectiveness of internal control systems, and in particular, review the external auditors’

management letter and management’s responses as well as to monitor the implementation of the recommendations

of the external auditors.

- To consider other related matters, as defined by the Board.

- To review related party transactions that may arise within the Group and any other major transactions outside the

ordinary course of business of the Group.

- To ensure compliance with the re q u i rements of the Securities Commission, Registrar of Companies and

Kuala Lumpur Stock Exchange as well as the requirements of any other regulatory authorities.

7. Reporting Programme

The Secretary shall circulate the minutes of the Committee to all members of the Board.



ear Shareholders,

It gives me great pleasure to present the Twenty-Fifth Annual Report of Hing Yiap Knitting IndustriesBerhad (“Hing Yiap” or “the Company”) for the financial year ended 30 June 2000.

Economy

The Malaysian economy recorded a remarkable recovery from the worst recession ever experienced in its history. The country’s

Gross Domestic Product (“GDP”) for the 1999 fiscal year was 5.8 %, a significant recovery from a contraction of 7.2% recorded in

the 1998 fiscal year. The economy continued to improve with a GDP of 10.3 % for the first half of the fiscal year 2000. The

Honourable Finance Minister, during the tabling of the Budget for the 2001 fiscal year, announced a forecast GDP of 7.5 % and

7.0 % for the fiscal years 2000 and 2001 respectively. The 2001 fiscal policy continues to be expansionary, with a fiscal deficit

position of 4.9% of gross national product, to stimulate economic activities and further strengthen economic recovery.

Review of Performance

Your Company has not been left out of the economic recovery. Hing Yiap has benefited significantly from the improvement of the

economy and consumer confidence, with Group revenue recording a growth of 21.1 % to RM 96.588 million for the financial year

ended 30 June 2000 as compared to a revenue of RM 79.748 million recorded in the previous financial year. This is a remarkable

achievement given that the economy was only in a recovery stage.

In line with the growth in Group revenue, the Group’s profit before tax also recorded significant improvement, of RM 9.210 million

from RM 3.757 million achieved last year, an increase of over 145.1 %. Correspondingly, the fully diluted earnings per share

improved to 30 sen from 21 sen recorded last year.

The cautious approach adopted by the management to expand the Group’s business to capture market share and operational

re-organisation programme implemented during the recession to strengthen the Group’s operations have obviously paid off.

The Board of Directors is satisfied with the performance of Hing Yiap for the financial year ended 30 June 2000.

Status of Rights Issue Proceeds

I mentioned in my last report to you that the Company had a balance of RM 109,000 that arose from the rights issue proceeds

raised in conjunction with the Company’s listing exercise. This amount, allocated for the upgrading of computer equipment, has

been utilised during the current financial year.

Board Changes

During the financial year, Encik Ahmad Moosdeen a/l Omar Moosdeen resigned as a director of the Company. On behalf of the

Board, I would like to record my appreciation for his invaluable contributions and services to the Board of Directors and Audit

Committee.

Mr Chi Kin Meng was appointed as a director to replace Encik Ahmad Moosdeen. I welcome Mr Chi to the Board and I look forward

to his future contributions.

S t a t e m e n tC h a i rm a n ’s

D

7hing yiap knit ting indust ries berh a d


Corporate Development

The following transactions were undertaken and completed during the financial year under review:

1. The acquisition of the 100 % interest in Diesel Marketing Sdn Bhd (formerly known as Carrot Boutique Sdn Bhd) on

1 July 1999 for a cash consideration of RM 1,000. Upon completion of this transaction, the issued and paid-up capital of this

new subsidiary company was increased from RM 10,002 to RM 250,000, fully subscribed by Hing Yiap.

2. On 15 October 1999, the Company entered into a sale and purchase agreement to acquire one unit of freehold industrial

land together with a single-storey factory cum warehouse and annexed two-and-a-half storey office building erected thereon

for RM 1.8 million. The transaction was completed during the current financial year and the building is used for storage of

inventories. Your Company financed this transaction from internally generated funds and a term loan from a local bank.

Sports Sponsorship

Your Company, through the brand “Antioni”, continues to sponsor the official sports attire wear of the Malaysian contingent

participating in international sporting events under the auspices of the Olympic Council of Malaysia and bowling tournaments

sanctioned by the Malaysian Tenpin Bowling Congress.

“Antioni” attired the official sports wear of the Malaysian athletes to the XXth SEA Games, held in Brunei Darussalam in August

1999, and the Sydney 2000 Olympic Games. I am proud to say that we have also been given the opportunity to sponsor the sports

attire wear of athletes representing The Gambia, Mongolia and Kyrgyzstan to the Sydney 2000 Olympic Games.

These sponsorships certainly give your Company a degree of prestige and mileage among our customers.

Outlook for 2001

A combination of factors, including the lacklustre performance of the Kuala Lumpur Stock Exchange, expected slowdown in the

US economy and historical high crude oil prices have made consumers turned cautious and this dampened the retail market

in Malaysia.

Your Company is not insulated from these external forces. These factors do present new challenges to the Company, with the

entrant of new competitions. It may be a challenge for the Company to maintain the performance of the 2000 financial year.

Nonetheless, I am confident that the Company will remain focused and will be prepared to take on all these new challenges.

Dividend

The Board is pleased to recommend a first and final dividend of five sen per share, less Malaysian income tax, for the approval of

the shareholders in the forthcoming Annual General Meeting.

Year 2000 (“Y2K”) Issue

The Company’s computerised information system did not encounter any problem associated with the Y2K issue.

Appreciation

The Group employs well over 1,000 employees. Your Company’s success is testament of the dedication, loyalty, support and

innovation of all the employees.

On behalf of the Board, I also wish to record my appreciation to the Group’s suppliers, customers, distributors and financial

institutions for their continuous support to the Group.

Dato’ Azizi Yom Ahmad

Chairman

Kuala Lumpur

15 November 2000

Statement (Cont’d)

C h a i rm a n ’s



R e p o rtD i re c t o r s ’

The Directors have pleasure in submitting their report and the audited accounts of the Group and of the Company for the financial

year ended 30 June 2000.

PRINCIPAL ACTIVITIES

The principal activities of the Company are those of property and investment holding, textile knitting and the manufacture of

garments whilst its subsidiary corporations are principally engaged in the wholesaling, retailing and distribution of ready-made

sports and casual wear and related accessories.

There have been no significant changes in the nature of these activities during the financial year.

RESULTS

Group Company

RM RM

Net profit for the financial year 6,282,664 6,022,813

DIVIDENDS

Dividends paid, declared or proposed by the Company since the end of the previous financial year were:

RM

(i) in respect of the financial year ended 30 June 1999:

as proposed in the Directors’ Report for that financial year,

a first and final dividend of 3% less tax, paid on 24 March 2000 439,841

additional first and final dividend of 3% less tax, paid on 24 March 2000,

in respect of new ordinary shares issued pursuant to the

Employees’ Share Option Scheme, subsequent to 30 June 1999

but before book closure date for dividend entitlement 993

(ii) in respect of the financial year ended 30 June 2000:

a proposed first and final dividend of 5% less tax 748,620

RESERVES AND PROVISIONS

All material transfers to or from reserves or provisions during the financial year have been disclosed in the accounts.

BAD AND DOUBTFUL DEBTS

Before the accounts of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that action

had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts, and are satisfied that

there were no known bad debts and adequate provision had been made for doubtful debts.

At the date of this report, the Directors are not aware of any circumstances that would render it necessary to write off bad debts

or the amount provided for doubtful debts, in the Group and the Company, inadequate to any substantial extent.



R e p o rt (Cont’d)

D i re c t o r s ’

CURRENT ASSETS

Before the accounts of the Group and of the Company were made out, the Directors took reasonable steps 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 Company and its subsidiary corporations, were written down to an amount that they might be

expected to realise.

At the date of this report, the Directors are not aware of any circumstances that would render the values attributed to the current

assets in the accounts of the Group and of the Company misleading.

VALUATION METHODS

At the date of this report, the Directors are not aware of any circumstances which have arisen which render adherence to the

existing methods of valuation of assets or liabilities in the Group and the Company misleading or inappropriate.

CONTINGENT AND OTHER LIABILITIES

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

(i) any charge on the assets of the Company or its subsidiary corporations that has arisen since the end of the financial year

which secures the liabilities of any other person; or

(ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year.

No contingent liability or other liability of the Group or of the Company has become enforceable, or is likely to become

enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or

may substantially affect the ability of the Group or of the Company to meet their obligations as and when they fall due.

CHANGE OF CIRCUMSTANCES

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

of the Group and of the Company which would render any amount stated in the accounts of the Group and of the Company

misleading.

ITEMS OF AN UNUSUAL NATURE

In the opinion of the Directors:

(i) the results of the operations of the Group and of the Company for the financial year have not been substantially affected by

any item, transaction or event of a material and unusual nature other than the Group’s exceptional items disclosed in note

22 to the accounts.

(ii) 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 which is likely to affect substantially the results of the operations of the Group and

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

10 hing yiap knitting indus tries berh a d

annual re p o rt 2000 2 2 4 1 4 - V incorporated in Malays ia



EMPLOYEES’ SHARE OPTION SCHEME

The Company’s Employees’ Share Option Scheme (“Scheme”) which was approved by the Registrar of Companies on

29 January 1999, will be in force for a period of four (4) years from 29 January 1999 (“Option Period”). The Company may extend

the Option Period for a further five (5) years subject to the approval of the relevant authorities.

The main features of the Scheme are as follows:

(i) The total number of new ordinary shares to be offered under the Scheme shall be subject to a maximum of 10% of the issued

and paid-up share capital of the Company at any time during the existence of the Scheme.

(ii) Eligible employees comprise confirmed full time employees, including Executive Directors, of the Company or its eligible

subsidiary corporations, subject to meeting of the following conditions:

(a) employees must be Malaysians and must have served for at least one continuous year with the Group;

(b) have attained the age of eighteen (18) years on or before the date of offer of the option to subscribe for ordinary

shares; and

(c) are not participants of any employee share option scheme implemented by any company in the Group.

The entitlement of an Executive Director under the Scheme must be approved by the shareholders of the Company in

a general meeting.

(iii) The price payable upon the exercise of an option offered shall be the average of the mean market quotation of the ordinary

shares as shown in the Daily Official List issued by the Kuala Lumpur Stock Exchange for the five (5) market days immediately

preceding the offer date, subject to the proviso that the option price per ordinary share shall in no event be less than its par

value or the last transacted market price of the ordinary shares at the time the option is offered.

(iv) An option may be exercised in full or in part by notice of writing to the Company on any working day during

the Option Period.

(v) The new ordinary shares to be allotted upon any exercise of the option will, upon allotment, rank pari passu in all respects

with the then existing issued and paid-up share capital of the Company, but will not entitle the holders thereof to receive

any dividends, rights, bonus issue and any other distribution declared to the Company’s shareholders which entitlement date

thereof precedes the relevant exercise date of the option and will be subject to all the provisions of the Articles of

Association of the Company.

As at 30 June 2000, options have been granted pursuant to the Scheme to subscribe for 1,998,000 ordinary shares of RM1 each

in the Company at an option price of RM1.54 per share. Of this total, Executive Directors had been granted options to subscribe

for 140,000 ordinary shares of RM1 each.

The movement in the options to take up the unissued ordinary shares of RM1 each of the Company during the financial

year is as follows:

No. of ordinary shares

of RM1 each under option

At 1 July 1999 1,606,000

Lapsed due to resignation (54,000)

Exercised (432,000)

At 30 June 2000 1,120,000





SHARE CAPITAL

During the financial year:

(i) the authorised share capital of the Company was increased from RM50,000,000 to RM100,000,000 by the creation of an

additional 50,000,000 ordinary shares of RM1 each.

(ii) the Company’s issued and fully paid ordinary share capital was increased from RM20,363,000 to RM20,795,000 by the issues

of 432,000 new ordinary shares of RM1 each pursuant to the Scheme.

Subsequent to the balance sheet date, the Company’s issued and fully paid ordinary share capital was further increased from

RM20,795,000 to RM20,828,000 by the issues of 33,000 new ordinary shares of RM1 each pursuant to the Scheme.

The above new shares rank pari passu in all respects with the existing shares of the Company.

DIRECTORS

The Directors who served since the date of the last report are:

Y.Bhg. Dato’ Azizi Yom Ahmad (Chairman)

Chi Oi Meng (Executive Deputy Chairman)

Khoo Henn Kuan (Chief Executive Officer)

Chi Kin Meng (Executive Director) (Appointed on 22.3.2000)

Y.Bhg. Dato’ Paduka Professor Dr. Khairuddin bin Mohamed Yusof

Sze Tho Pooi Lin

Foo Yak Chu

Ahmad Moosdeen a/l Omar Moosdeen (Resigned on 22.3.2000)

Madam Sze Tho Pooi Lin, who is over the age of seventy (70) years, retires at the forthcoming Annual General Meeting in

accordance with Section 129 of the Companies Act, 1965 and being eligible, offers herself for re-appointment in accordance with

Section 129(6) of the said Act to hold office until the conclusion of the next Annual General Meeting.

In accordance with Article 84 of the Company’s Article of Association, Mr. Chi Kin Meng retires at the forthcoming Annual General

Meeting and, being eligible, offers himself for re-election.

In accordance with Article 102 of the Company’s Articles of Association, Mr. Khoo Henn Kuan and Madam Foo Yak Chu retire at

the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.





DIRECTORS (Cont’d)

The Directors holding office at the end of the financial year and their interests in the share capital of the Company as recorded in

the register of directors’ shareholdings were as follows:

No. of ordinary shares of RM1 each

At

1.7.1999

or date of At

Shareholdings registered in the name of Directors appointment Bought Sold 30.6.2000

Y.Bhg. Dato’ Azizi Yom Ahmad 3,503,250 - - 3,503,250

Y.Bhg. Dato’ Paduka Professor

Dr. Khairuddin bin Mohamed Yusof 21,000 - 21,000 -

Chi Oi Meng 883,000 - - 883,000

Khoo Henn Kuan 536,000 - - 536,000

Foo Yak Chu 98,000 - 94,000 4,000

Shareholdings in which Directors

are deemed to have an interest

Chi Oi Meng 7,231,000 - - 7,231,000

Khoo Henn Kuan 7,249,000 - 18,000 7,231,000

Sze Tho Pooi Lin 7,231,000 - - 7,231,000

Chi Kin Meng 7,231,000 - - 7,231,000

Options over ordinary shares of RM1 each

At

1.7.1999

Option or date of At

Options granted to the Directors price appointment Granted Exercised 30.6.2000

RM

Chi Oi Meng 1.54 70,000 - - 70,000

Khoo Henn Kuan 1.54 42,000 - - 42,000

Chi Kin Meng 1.54 46,000 - - 46,000

Options in which a Director is

deemed to have an interest

Khoo Henn Kuan 1.54 74,000 - - 74,000





DIRECTORS (Cont’d)

Madam Chi Oi Meng, Mr. Khoo Henn Kuan, Mr. Chi Kin Meng and Madam Sze Tho Pooi Lin, by virtue of their holdings of more

than 15% of the share capital of the Company, are deemed to have an interest in the entire share capitals of the Company’s

subsidiary corporations during the financial year.

Madam Chi Oi Meng, Mr. Khoo Henn Kuan, Mr. Chi Kin Meng and Madam Sze Tho Pooi Lin are immediate family members. They

are therefore deemed to have an interest in each other’s shareholding in the Company and options over the Company’s ordinary

shares during the financial year.

DIRECTORS’ BENEFITS

During the financial year, the Company and its subsidiary corporations, in the ordinary course of business transacted with certain

related parties in which certain Directors have interests, the details of which are disclosed in note 25 to the accounts.

Other than the above, since the end of the previous financial year, no Director has received or become entitled to receive any

benefit (other than those disclosed in the accounts) by reason of a contract made by the Company or a subsidiary 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.

Neither during nor at the end of the financial year, was the Company a party to any arrangements whose object is to enable the

Directors to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate

except for options over the Company’s ordinary shares granted by the Company to certain Directors, pursuant to the Scheme

described in this report.

PRINCIPAL PLACE OF BUSINESS

The principal place of business of the Group is located at Lots 59 - 60, Lorong Kuang Bulan, Taman Kepong, 52100 Kuala Lumpur.

AUDITORS

The auditors, Sekhar & Tan, have indicated their willingness to accept reappointment.

Signed in accordance with a resolution of the directors,

.......................................................................... ..........................................................................

Chi Oi Meng Khoo Henn Kuan

Kuala Lumpur

Dated: 14 October 2000



D i re c t o r sStatement by

We, Chi Oi Meng and Khoo Henn Kuan , being two of the Directors of HING YIAP KNITTING INDUSTRIES BERHAD do hereby

state that in the opinion of the Directors, the accompanying accounts give a true and fair view of the state of affairs of the Group

and the Company at 30 June 2000 and the results of their operations and the cash flows of the Group and the Company for the

financial year ended on that date and are properly drawn up in accordance with applicable approved accounting standards in

Malaysia.

Signed in accordance with a resolution of the directors,

...................................................................

Chi Oi Meng

...................................................................

Khoo Henn Kuan

Kuala Lumpur


DECLARATIONI, Chi Oi Meng, the Director primarily responsible for the financial management of HING YIAP KNITTING INDUSTRIES BERHAD

do solemnly and sincerely declare that the accompanying accounts 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.

Subscribed and solemnly declared by the )

abovenamed Chi Oi Meng at Kuala Lumpur)

in Wilayah Persekutuan on 14 October 2000 ) ..........................................................................

Chi Oi Meng

Before me,

Commissioner for Oaths

S t a t u t o ry



to the MembersR e p o rt of the Auditors

We have audited the accounts set out on pages 16 to 39. The preparation of the accounts is the responsibility of the directors.

Our responsibility is to express an opinion on the accounts based on our audit.

We conducted our audit in accordance with approved auditing standards in Malaysia. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the accounts are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the

accounting principles used and significant estimates made by the directors, as well as evaluating the overall accounts presentation.

We believe that our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the accounts give a true and fair view of the state of affairs of the Group and the Company at 30 June 2000 and of their

results and cash flows for the year ended on that date and are properly drawn up in accordance with the provisions of the

Companies Act, 1965 and applicable approved accounting standards in Malaysia; and

(b) the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiary

companies of which we acted as auditors have been properly kept in accordance with the provisions of the Act.

We have considered the accounts and the auditors’ report of the subsidiary corporation of which we have not acted as auditors,

and which is indicated in note 5 to the accounts.

We are satisfied that the accounts of the subsidiary corporations that have been consolidated with the Company’s accounts are in

form and content appropriate and proper for the purposes of the preparation of the consolidated accounts and we have received

satisfactory information and explanations required by us for those purposes.

The audit reports on the accounts of the subsidiary corporations were not subject to any qualification or any adverse comment

made under subsection (3) of Section 174 of the Act.

Sekhar & Tan Chung Wai Choong

No. AF 0926 No. 1671/12/00 (J)

Public Accountants Partner of Firm

Certified Public Accountants




at 30 June 2000Balance Sheets

Group Company

Note 2000 1999 2000 1999

RM RM RM RM

FIXED ASSETS 2 21,079,798 17,021,230 17,299,949 13,479,433

INVESTMENT PROPERTIES 3 3,800,000 3,800,000 3,800,000 3,800,000

INTANGIBLE ASSETS 4 3,603,800 3,796,000 - -

SUBSIDIARY CORPORATIONS 5 - - 1,291,998 1,051,000

CURRENT ASSETS

Stocks 6 41,446,943 38,842,339 10,988,084 14,698,182

Trade debtors 7 19,370,459 17,596,556 7,014,133 6,358,569

Other debtors and prepayments 8 1,926,519 1,406,453 506,135 483,153

Due from subsidiary corporations 9 - - 31,812,119 22,036,333

Short term investment 10 166,027 166,027 135,000 135,000

Bank and cash balances 694,619 712,167 364,173 485,687

63,604,567 58,723,542 50,819,644 44,196,924

CURRENT LIABILITIES

Trade creditors 11 10,426,570 18,669,127 9,459,318 14,024,461

Other creditors and accrued

liabilities 12 2,939,566 2,047,386 893,206 885,575

Hire purchase creditors 13 403,094 442,897 79,188 53,297

Due to a subsidiary company 14 - - 1,827,767 -

Short term borrowings 15 18,410,774 14,441,727 7,182,865 5,194,468

Taxation 2,063,761 333,156 165,118 40,276

Proposed dividends 748,620 439,841 748,620 439,841

34,992,385 36,374,134 20,356,082 20,637,918

NET CURRENT ASSETS 28,612,182 22,349,408 30,463,562 23,559,006

HIRE PURCHASE CREDITORS 13 (399,805) (316,366) (112,938) (45,503)

TERM LOANS 16 (4,745,944) (1,084,789) (4,745,944) (1,084,789)

DEFERRED TAXATION 17 (907,500) (674,000) (1,720,000) (421,000)

51,042,531 44,891,483 46,276,627 40,338,147

CAPITAL AND RESERVES

SHARE CAPITAL 18 20,795,000 20,363,000 20,795,000 20,363,000

RESERVES 30,247,531 24,528,483 25,481,627 19,975,147

SHAREHOLDERS’ FUNDS 51,042,531 44,891,483 46,276,627 40,338,147

The notes on pages 21 to 39 form an integral part of these accounts

Auditors’ report on page 15



Financial year ended 30 June 2000Statement of Changes in Equity

Exchange

Share Share Revaluation fluctuation Retained

Group Note capital premium surplus reserve profits Total

RM RM RM RM RM RM

At 30 June 1998 19,995,000 1,062,362 2,190,572 22,998 17,316,235 40,587,167

Net profit for the financial year - - - - 4,319,245 4,319,245

Dividend 19 - - - - (439,841) (439,841)

Exercise of options rights 18 368,000 198,720 - - - 566,720

Currency translation differences - - - (141,808) - (141,808) [Note A]

At 30 June 1999 20,363,000 1,261,082 2,190,572 (118,810) 21,195,639 44,891,483

Net profit for the financial year - - - - 6,282,664 6,282,664

Goodwill arising on

consolidation written off - - - - (11,024) (11,024) [Note A]

Dividends 19 - - - - (749,613) (749,613)

Exercise of options rights 18 432,000 233,280 - - - 665,280

Currency translation differences - - - (36,259) - (36,259) [Note A]

At 30 June 2000 20,795,000 1,494,362 2,190,572 (155,069) 26,717,666 51,042,531

<——————————[Note B] ——————————->

Share Share Revaluation Retained

Company Note capital premium surplus profits Total

RM RM RM RM RM RM

At 30 June 1998 19,995,000 1,062,362 2,190,572 10,933,149 34,181,083

Net profit for the financial year - - - 6,030,185 6,030,185

Dividend 19 - - - (439,841) (439,841)

Exercise of options rights 18 368,000 198,720 - - 566,720

At 30 June 1999 20,363,000 1,261,082 2,190,572 16,523,493 40,338,147

Net profit for the financial year - - - 6,022,813 6,022,813

Dividends 19 - - - (749,613) (749,613)

Exercise of options rights 18 432,000 233,280 - - 665,280

At 30 June 2000 20,795,000 1,494,362 2,190,572 21,796,693 46,276,627

<—————[Note B]—————->

NOTES TO THE STATEMENTS OF CHANGES IN EQUITY

A. Losses not recognised in income statement.

B. The share premium, revaluation surplus, and exchange fluctuation reserve are not distributable by way of cash dividends.



18 hing yiap knitt ing industries berh a d


Financial year ended 30 June 2000Income Statements

Group Company

Note 2000 1999 2000 1999

RM RM RM RM

Revenue 20 96,587,717 79,747,582 65,683,563 47,531,319

Other operating income 587,807 683,734 1,032,835 556,322

Changes in stocks of finished goods

and work in progress 3,453,635 4,864,201 (3,462,509) 2,989,112

Raw materials and consumables used (16,433,966) (18,941,443) (14,535,188) (14,981,487)

Staff costs (16,838,861) (14,039,307) (4,919,318) (4,600,258)

Depreciation and amortisation expenses (2,451,659) (2,254,706) (750,751) (568,709)

Operating expenses (53,547,505) (39,725,685) (34,665,617) (20,991,138)

Profit from operations 11,357,168 10,334,376 8,383,015 9,935,161

Finance costs (1,371,799) (1,942,932) (407,434) (720,478)

Profit before exceptional items 21 9,985,369 8,391,444 7,975,581 9,214,683

Exceptional items 22 (775,517) (4,634,475) - (1,321,498)

Profit before taxation 9,209,852 3,756,969 7,975,581 7,893,185

Taxation 23 (2,927,188) 562,276 (1,952,768) (1,863,000)

Net profit for the financial year 6,282,664 4,319,245 6,022,813 6,030,185

Basic earnings per share 24 31 sen 22 sen

Fully diluted earnings per share 24 30 sen 21 sen

The number of employees (including

executive directors) at the balance

sheet date 1,129 955 255 259





Financial year ended 30 June 2000Cash Flow Statements

Group Company

2000 1999 2000 1999

RM RM RM RM

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 9,209,852 3,756,969 7,975,581 7,893,185

Adjustments for:

Interest expenses 1,262,128 1,869,291 623,578 689,016

Interest income (4,429) (119,472) (274,464) (119,472)

Dividend income - - (4,437,500) (10,587,500)

Depreciation 2,259,459 2,062,506 750,751 568,709

Amortisation of intangible assets 192,200 192,200 - -

(Profit)/loss on sale of fixed assets (152,540) (57,828) (153,180) 684

Fixed assets written off 60 1,113 - -

Provision for diminution in value of unquoted

equity shares in a subsidiary corporation - - - 159,000

Operating profit/(loss) before working

capital changes 12,766,730 7,704,779 4,484,766 (1,396,378)

(Increase)/decrease in stocks (2,604,604) (774,143) 3,710,098 (3,364,226)

(Increase)/decrease in debtors (2,282,219) (1,397,041) (11,873,527) 2,531,756

(Decrease)/increase in creditors (7,363,646) 10,938,400 (2,732,978) 8,384,989

Increase/(decrease) in short term borrowings

(bankers’ acceptances only) 2,581,000 (6,226,603) 1,471,000 (3,464,494)

Cash generated from/(absorbed by)

operations 3,097,261 10,245,392 (4,940,641) 2,691,647

Interest paid (983,365) (1,602,334) (404,682) (615,329)

Tax paid (963,093) (1,670,561) (528,926) (1,026,390)

Net cash from/(used in) operating activities 1,150,803 6,972,497 (5,874,249) 1,049,928

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of subsidiary company net of cash

acquired [Note A] (978) - (1,000) -

Purchase of additional equity shares in

subsidiary company - - (239,998) -

Dividends received - - 5,861,500 2,556,000

Interest received 4,429 152,430 274,464 152,430

Purchase of fixed assets [Note B] (5,752,537) (4,583,965) (4,352,127) (4,300,178)

Proceeds from sale of fixed assets 319,152 383,609 318,699 239,348

Net cash (used in)/from investing activities (5,429,934) (4,047,926) 1,861,538 (1,352,400)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issues of shares 665,280 566,720 665,280 566,720

Interest paid (430,172) (393,228) (363,360) (302,223)

Dividends paid (437,601) (706,159) (437,601) (706,159)

Repayment of hire purchase obligations (549,364) (514,008) (151,674) (189,285)

Repayment of term loans (306,510) (88,791) (306,510) (88,791)

Drawdowns of term loans 4,485,062 - 4,485,062 -

Net cash from/(used in) financing activities 3,426,695 (1,135,466) 3,891,197 (719,738)



Financial year ended 30 June 2000 (Cont’)

Cash Flow Statements

Group Company

2000 1999 2000 1999RM RM RM RM

NET (DECREASE)/INCREASE IN CASH

AND CASH EQUIVALENTS (852,436) 1,789,105 (121,514) (1,022,210)

CURRENCY TRANSLATION DIFFERENCES (35,762) (158,569) - -

CASH AND CASH EQUIVALENTS AT

BEGINNING OF FINANCIAL YEAR 32,908 (1,597,628) 485,687 1,507,897

CASH AND CASH EQUIVALENTS AT

END OF FINANCIAL YEAR (855,290) 32,908 364,173 485,687

CASH AND CASH EQUIVALENTS ARE

REPRESENTED BY:

Bank and cash balances 694,619 712,167 364,173 485,687

Bank overdrafts (1,549,909) (679,259) - -

(855,290) 32,908 364,173 485,687

NOTES TO THE CASH FLOW STATEMENTS

A. ACQUISITION OF SUBSIDIARY COMPANY

NET OF CASH ACQUIRED RM

The fair value of assets acquired and liabilities assumed

in subsidiary company acquired was as follows:

Cash and cash equivalents 22

Creditors (10,036)

Taxation (10)

Net liabilities assumed (10,024)

Goodwill on consolidation 11,024

Purchase price 1,000

Cash and cash equivalents acquired (22)

Cash flow on acquisition net of cash and cash equivalents acquired 978

B. PURCHASE OF FIXED ASSETS

During the financial year, the Group and the Company respectively purchased fixed assets with an aggregate cost of RM6,485,196

(1999: RM5,232,143) and RM4,736,786 (1999: RM4,642,750) of which RM593,000 (1999: RM395,606) and RM245,000 (1999:

RM90,000) were financed by means of hire purchase. Cash payments of RM5,892,196 (1999: RM4,836,537) and RM4,491,786

(1999: RM4,552,750) were made by the Group and the Company respectively during the financial year in respect of these fixed

assets purchased. Included in these cash payments are the Group’s and the Company’s borrowing costs capitalised during the

financial year of RM139,659 (1999: RM252,572).





Financial year ended 30 June 2000Notes to the Accounts

1. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

The accounts have been prepared under the historical cost convention modified to include the revaluation of freehold land

and buildings and certain land and buildings on long term leases and, comply with applicable approved accounting

standards in Malaysia.

The Group and the Company had applied certain transitional provisions in the applicable approved accounting standard,

International Accounting Standard No. 16 (Revised) “Property, Plant and Equipment,”[“IAS 16”] by virtue of which a

reporting enterprise which does not adopt a policy of regular revaluation of its fixed assets is allowed to retain revalued

amounts on the basis of their previous revaluations, subject to continuity in depreciation policy and the requirement to write

an asset down to its recoverable amount. Accordingly, the Group’s and the Company’s revalued fixed asset is stated at

“deemed cost” as permitted by IAS 16 in the accounts of the Group and the Company.

(b) Basis of Consolidation

The consolidated accounts include the accounts of the Company and its subsidiary corporations made up to the end of the

financial year.

Intercompany transactions are eliminated on consolidation and the consolidated accounts reflect external transactions only.

(c) Foreign Currency Conversion and Translation

Transactions in foreign currencies are converted into Ringgit Malaysia at the rates of exchange ruling at the transaction

dates. Assets and liabilities at the balance sheet date are translated at the rates of exchange ruling at that date and

differences are taken to the income statements.

Income and expense items of the foreign subsidiary corporation are translated into Ringgit Malaysia at average rates of

exchange for the financial year and assets and liabilities, both monetary and non-monetary, at the rates of exchange ruling

at the balance sheet date. Exchange differences arising from the translation of income and expense items at average rates

and assets and liabilities at the rates prevailing at the balance sheet date, and the restatement at rates prevailing at the

balance sheet date of the opening net investments in the foreign subsidiary corporation are taken to “Exchange Fluctuation

Reserve”.

The exchange rates used during the financial year are as follows:

Average rates Closing rates

2000 1999 2000 1999

Singapore Dollars 2.26 2.31 2.21 2.26

United States Dollars 3.80 3.80 3.80 3.80

(d) Fixed Assets and Depreciation

Depreciation is not provided on freehold land and land on long term leases under development.

Land on long term leases under development is stated at cost. Cost comprises land cost and related development

expenditure including borrowing costs directly attributable to the financing of the development.

Buildings are depreciated at the rate of 2% per annum on a straight-line basis.



Financial year ended 30 June 2000 (Cont’d)

Notes to the Accounts

1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

(d) Fixed Assets and Depreciation (Cont’d)

On other assets, depreciation is calculated on the following bases and annual rates:

Purchased on or subsequent Purchased prior to

to 1 July 1993 - straight 1 July 1993 - reducing

line basis balance basis

Display counters, furniture

and fixtures 5% to 25% 5% to 20%

Electrical fittings 10% 10%

Plant and machinery 10% 10%

Store equipment 10% and 20% 10%

Computer and office equipment 10% to 25% 10%

Motor vehicles 20% and 25% 20%

(e) Investment Properties

Land and buildings which are held for long term investment purposes are classified as investment properties.

Investment properties are stated at valuation based on appraisals by independent professional valuers at least once in every

five years on a fair market value basis. Additions subsequent to the date of the last valuation are stated at cost. Surpluses

arising on revaluation where considered by the Directors to be permanent in nature, are included in the balance sheets as

“Revaluation Surplus”. Any decrease in the carrying value of investment properties below their costs or valuation is charged

to the income statements and/or the revaluation surplus in the balance sheets. The charging of any decrease in the carrying

value to the revaluation surplus in the balance sheets is only applicable if there was an originating surplus and the surplus

concerned has not been reversed or utilised.

f) Investments

Investments in subsidiary corporations and short term investment are stated at cost less provision for any permanent

diminution in value.

In the consolidated balance sheet, the short term investment is stated at cost plus share of post-acquisition profits.

g) Intangible Assets

Intangible assets arising from the acquisition of rights, interests and benefits to the operations, brands and patents

pertaining to the “ANTIONI” and “BONTTON” trademarks, are amortised to the consolidated income statement on a

straight-line basis over the anticipated period of profitable exploitation, as determined by the Directors, of twenty five years

commencing from the date of acquisition.

(h) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first-in first-out basis and

includes all costs in bringing the stocks to their present location and condition. In the case of manufactured products, cost

includes all direct expenditure and production overheads based on the normal level of activity.

Net realisable value is the price at which the stocks can be realised in the normal course of business after allowing for the

costs of realisation and, where appropriate, the cost of conversion from their existing state to a finished condition.





1. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

(i) Leases and Hire Purchase

Leases where substantially all risks and rewards of ownership of assets are transferred to the Group and the Company are

accounted for as finance leases.

Leases which do not meet such criteria are classified as operating leases and the related rentals are charged to the income

statements as incurred.

Fixed assets acquired under finance leases and hire purchase are capitalised in the accounts and are depreciated in

accordance with the policy set out in note 1(d). The corresponding outstanding obligations due under finance leases and

hire purchase after deducting finance charges are included as liabilities in the accounts. Finance charges are allocated to the

income statements over the periods of the respective agreements.

(j) Sales Advertising and Promotional Expenses

Expenses incurred on sales advertising and promotional activities are written off to the consolidated income statement

evenly over twelve months from the date of incurrence.

(k) Deferred Taxation

Deferred taxation, calculated by the liability method, is provided on timing differences arising from the different treatments

in accounting and taxation of certain items except where it can be demonstrated with reasonable probability that the tax

deferral will continue for the foreseeable future.

In accounting for timing differences, deferred tax debits are not accounted for unless there is a reasonable expectation of

their realisation.

(l) Borrowing Costs Capitalisation

Borrowings costs incurred on the purchase of fixed assets are capitalised until the assets concerned are ready for their

intended use.

(m) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and in banks and deposits at call, net of outstanding bank overdrafts.





2. FIXED ASSETS

Group

Land on Display

Freehold long term Buildings counters, Computer

land and leases under on long furniture and office

buildings development term leases and fixtures equipment

RM RM RM RM RM

Cost/valuation:

At 1 July 1999

Cost 3,211,863 2,038,976 920,761 6,319,122 1,562,620

Valuation

[“Deemed cost”] 3,900,000 - - - -

7,111,863 2,038,976 920,761 6,319,122 1,562,620

Additions 2,059,330 1,387,240 - 1,113,506 266,212

Disposals - - - (244,683) (45,301)

Currency translation

differences - - - (7,275) (3,185)

2,059,330 1,387,240 - 861,548 217,726

At 30 June 2000

Cost 5,271,193 3,426,216 920,761 7,180,670 1,780,346

Valuation

[“Deemed cost”] 3,900,000 - - - -

9,171,193 3,426,216 920,761 7,180,670 1,780,346

Accumulated

depreciation:

At 1 July 1999 167,795 - 70,822 3,577,965 639,476

Charge for the

financial year 89,015 - 18,415 1,178,557 269,634

Disposals - - - (243,532) (45,299)

Currency translation

differences - - - (6,913) (3,042)

At 30 June 2000 256,810 - 89,237 4,506,077 860,769

Net book value:

At 30 June 2000 8,914,383 3,426,216 831,524 2,674,593 919,577

Net book value:

At 30 June 1999 6,944,068 2,038,976 849,939 2,741,157 923,144

Depreciation charge

for the financial year

ended 30 June 1999 48,119 - 18,415 1,144,268 244,087





Electrical Plant and Store Motor

fittings machinery equipment vehicles Total

RM RM RM RM RM

421,349 4,874,878 185,007 1,756,555 21,291,131

- - - - 3,900,000

421,349 4,874,878 185,007 1,756,555 25,191,131

28,226 833,586 4,830 792,266 6,485,196

(4,800) - - (466,618) (761,402)

- - - (1,387) (11,847)

23,426 833,586 4,830 324,261 5,711,947

444,775 5,708,464 189,837 2,080,816 27,003,078

- - - - 3,900,000

444,775 5,708,464 189,837 2,080,816 30,903,078

153,337 2,243,226 30,979 1,286,301 8,169,901

34,341 386,115 18,847 264,535 2,259,459

(640) - - (305,259) (594,730)

- - - (1,395) (11,350)

187,038 2,629,341 49,826 1,244,182 9,823,280

257,737 3,079,123 140,011 836,634 21,079,798

268,012 2,631,652 154,028 470,254 17,021,230

19,878 265,080 18,501 304,158 2,062,506





2. FIXED ASSETS (Cont’d)

Company

Land on Display

Freehold long term Buildings counters,

land and leases under on long furniture

buildings development term leases and fixtures

RM RM RM RM

Cost/valuation:

At 1 July 1999

Cost 3,211,863 2,038,976 920,761 202,973

Valuation [“Deemed cost”] 3,900,000 - - -

7,111,863 2,038,976 920,761 202,973

Additions 2,059,330 1,387,240 - 1,386

Disposals - - - -

2,059,330 1,387,240 - 1,386

At 30 June 2000

Cost 5,271,193 3,426,216 920,761 204,359

Valuation [“Deemed cost”] 3,900,000 - - -

9,171,193 3,426,216 920,761 204,359

Accumulated depreciation:

At 1 July 1999 167,795 - 70,822 49,825

Charge for the financial year 89,015 - 18,415 8,718

Disposals - - - -

At 30 June 2000 256,810 - 89,237 58,543

Net book value:

At 30 June 2000 8,914,383 3,426,216 831,524 145,816

Net book value:

At 30 June 1999 6,944,068 2,038,976 849,939 153,148

Depreciation charge for the financial

year ended 30 June 1999 48,119 - 18,415 7,694






Computer

and office Electrical Plant and Motor

equipment fittings machinery vehicles Total

RM RM RM RM RM

376,971 421,349 4,874,878 1,151,621 13,199,392

- - - - 3,900,000

376,971 421,349 4,874,878 1,151,621 17,099,392

58,384 28,226 833,586 368,634 4,736,786

- (4,800) - (466,618) (471,418)

58,384 23,426 833,586 (97,984) 4,265,368

435,355 444,775 5,708,464 1,053,637 17,464,760

- - - - 3,900,000

435,355 444,775 5,708,464 1,053,637 21,364,760

118,506 153,337 2,243,226 816,448 3,619,959

39,746 34,341 386,115 174,401 750,751

- (640) - (305,259) (305,899)

158,252 187,038 2,629,341 685,590 4,064,811

277,103 257,737 3,079,123 368,047 17,299,949

258,465 268,012 2,631,652 335,173 13,479,433

34,952 19,878 265,080 174,571 568,709






The freehold land and building of the Group and the Company stated at the valuation of RM3,900,000 (1999: RM3,900,000)

were revalued on 7 October 1995 on a fair market value basis by a firm of independent professional appraisers. This

valuation which is now considered as the “deemed cost” of the asset concerned is permitted by the transitional provisions

of IAS 16.

At the balance sheet date:

(i) the net book value of fixed assets on hire purchase in respect of which instalments are outstanding is as follows:

Group Company

2000 1999 2000 1999

RM RM RM RM

Display counters, furniture and fixtures 212,262 264,299 - -

Computer and office equipment 315,147 425,937 - -

Motor vehicles 694,289 262,108 260,152 214,432

Store equipment 130,685 148,505 - -

1,352,383 1,100,849 260,152 214,432

(ii) the cost of fixed assets which are fully depreciated but are still in use is as follows:

Group Company

2000 1999 2000 1999

RM RM RM RM

Display counters, furniture and fixtures 1,176,738 527,960 - -

Computer and office equipment 209,392 58,492 2,100 2,100

Motor vehicles 701,397 326,887 481,208 182,008

2,087,527 913,339 483,308 184,108

(iii) the freehold land and buildings, land on long term leases under development and buildings on long term leases

costing RM5,271,193 (1999: RM3,211,863), RM3,426,216 (1999: RM2,038,976) and RM671,761 (1999: RM671,761)

respectively of the Group and the Company have been charged to secure the term loans referred to in note 16;

(iv) the strata titles to the buildings on long term leases of the Group and the Company have not been issued by the

relevant authorities to the Company; and

(v) the title deeds to the land on long term leases under development of the Group and the Company have yet to be

transferred to the Company by the developer.

The borrowings costs capitalised in fixed assets for the financial year amounted to RM139,659 (1999: RM252,572).

3. INVESTMENT PROPERTIES

Group and Company 2000 1999 RM RM

At valuation:

Freehold land and building 1,550,000 1,550,000

Land and buildings on long term leases 2,250,000 2,250,000

3,800,000 3,800,000

The investment properties were revalued on a fair market value basis by a firm of independent professional appraisers on 7

October 1995.





4. INTANGIBLE ASSETS

Group 2000 1999

RM RM

At 1 July 1999/1998 3,796,000 3,988,200

Amount amortised (192,200) (192,200)

At 30 June 3,603,800 3,796,000

5. SUBSIDIARY CORPORATIONS

2000 1999

RM RM

Unquoted equity shares, at cost 1,450,998 1,210,000

Provision for diminution in value (159,000) (159,000)

1,291,998 1,051,000

The subsidiary corporations are:

Name of corporation Principal activities Equity interest

2000 1999

Incorporated in Malaysia % %

Antioni Sdn. Bhd. Retailing and distribution of the “ANTIONI” 100 100

brand of ready-made sports and casual wear

and related accessories

B.U.M. Marketing Retailing and distribution of the “B.U.M. 100 100

(Malaysia) Sdn. Bhd. EQUIPMENT” brand of ready-made

casual wear and related accessories

Bontton Sdn. Bhd. Retailing and distribution of the “BONTTON” 100 100

brand of ready-made casual wear and

related accessories

Diesel Marketing Sdn. Bhd. Retailing and distribution of the “DIESEL” 100 -

brand of ready-made casual wear and related

accessories

Hing Yiap Trading Sdn. Wholesaling of ready-made garments 100 100

Bhd.

Incorporated in Singapore

B.U.M. Marketing Retailing and distribution of the “B.U.M. 100 100

(Singapore) Pte. Ltd.* EQUIPMENT” brand of ready-made

casual wear and related accessories

* This subsidiary corporation is not audited by Sekhar & Tan.





6. STOCKS

Group Company

2000 1999 2000 1999

RM RM RM RM

Raw materials and consumables 2,160,141 2,407,730 2,160,141 2,407,730

Work-in-progress 7,137,660 10,335,357 7,137,660 10,335,357

Finished goods 32,149,142 26,099,252 1,690,283 1,955,095

41,446,943 38,842,339 10,988,084 14,698,182

Included in the above carrying

amounts are finished goods which

are stated at their respective net

realisable amounts 1,782,791 4,824,030 41,745 41,270

7. TRADE DEBTORS

Group Company

2000 1999 2000 1999

RM RM RM RM

Trade debtors* 23,074,076 21,472,714 8,154,968 7,499,404

Provision for doubtful debts (3,703,617) (3,876,158) (1,140,835) (1,140,835)

19,370,459 17,596,556 7,014,133 6,358,569

* Included in this item are the

following amounts, arising in

the ordinary course of business:

Trade receivables due from companies

in which a Director is deemed to

have interests 1,288,092 2,323,089 1,288,092 2,323,089

Sales proceeds due from consignees in

which a Director has interests - 1,868,448 - -

8. OTHER DEBTORS AND PREPAYMENTS

Group

Included in this item is deferred sales advertising and promotional expenses of RM592,580 (1999: RM258,092).

31hing yiap knit ting industries berh a d




9. DUE FROM SUBSIDIARY CORPORATIONS

2000 1999

RM RM

Trade transactions 21,423,454 13,404,929

Cash advances 7,078,608 3,897,347

28,502,062 17,302,276

Provision for doubtful debts (1,127,443) (1,127,443)

27,374,619 16,174,833

Dividends receivable 4,437,500 5,861,500

31,812,119 22,036,333

The above cash advances which are unsecured and have no fixed terms of repayment, bore interest at rates which varied in

accordance with the Company’s prevailing applicable borrowing rates during the financial year. In the previous financial year,

these cash advances were interest-free.

10. SHORT TERM INVESTMENT

Group Company

2000 1999 2000 1999

RM RM RM RM

Unquoted equity shares, at cost 135,000 135,000 135,000 135,000

Group’s share of post-acquisition

profits 31,027 31,027 - -

166,027 166,027 135,000 135,000

The above represents the Group’s and the Company’s equity interest of 45% (1999: 45%) in Diesel Trading Sdn. Bhd. (In

Liquidation), a company incorporated in Malaysia, which was placed under members’ voluntary liquidation during the

financial year ended 30 June 1997. Consequently, the Group and the Company ceases to have a significant influence in the

investee company concerned and accordingly, this investment which was formerly treated as an associated company, has

now been accounted for as a short term investment and stated at the cost of investment plus share of post-acquisition

profits.

11. TRADE CREDITORS

Group and Company

Included in this item is an amount, arising in the ordinary course of business, of RM839,650 (1999: RM1,370,093), due to a

company in which a Director is deemed to have an interest.

12. OTHER CREDITORS AND ACCRUED LIABILITIES

Group Company

2000 1999 2000 1999

RM RM RM RM

This item includes the following:

Dividends payable 5,746 2,513 5,746 2,513

Amount due to the investee company

referred to in note 10 321,929 321,929 - -





13. HIRE PURCHASE CREDITORS

Group Company

2000 1999 2000 1999

RM RM RM RM

Hire purchase creditors 802,899 759,263 192,126 98,800

Portion due within twelve months

(included in current liabilities) (403,094) (442,897) (79,188) (53,297)

Portion due after twelve months 399,805 316,366 112,938 45,503

Analysis of hire purchase commitments:

Due within one year 475,104 520,379 96,984 67,211

Due between one and five years 434,649 345,049 121,215 50,190

909,753 865,428 218,199 117,401

Finance charges (106,854) (106,165) (26,073) (18,601)

802,899 759,263 192,126 98,800

14. DUE TO A SUBSIDIARY COMPANY

This represents unsecured and interest-free cash advances with no fixed terms of repayment.

15. SHORT TERM BORROWINGS

Group Company

2000 1999 2000 1999

RM RM RM RM

Unsecured:

Bank overdrafts 1,549,909 679,259 - -

Bankers’ acceptances 16,248,000 13,667,000 6,570,000 5,099,000

17,797,909 14,346,259 6,570,000 5,099,000

Secured:

Term loans - repayment due

within twelve months (note 16) 612,865 95,468 612,865 95,468

18,410,774 14,441,727 7,182,865 5,194,468

The short term borrowings (excluding term loans) of the Group and the Company bore interest as follows:

Group Company

Bank overdrafts 1.5% (1999: 1.5%) per 1.5% to 1.75% (1999: 1%

annum above prime rate and to 3.5%) per annum above

1.25% to 2.5% (1999: 1% to the lenders’ base lending

3.5%) per annum above the rates

lenders’ base lending rates

Bankers’ acceptances Rates which varied in Rates which varied in

accordance with the lenders’ accordance with the lenders’

cost of funds cost of funds





16. TERM LOANS

Group and Company

2000 1999

RM RM

Term loans 5,358,809 1,180,257

Repayment due within twelve months

(included in short term borrowings - note 15) (612,865) (95,468)

Repayment due after twelve months 4,745,944 1,084,789

The above term loans which bore interest at the rates of 7% and 9.5% (1999: 7% and 9.5%) per annum and 1.5% and 1.75%

(1999: 1.75%) per annum above the lenders’ base lending rates during the financial year and repayable over periods not

exceeding 10 years (1999: 10 years) are secured by way of fixed and legal charges over certain land and buildings on long

term leases and certain freehold land and buildings and deeds of assignment cum loan agreements on the land on long term

leases under development referred to in note 2.

17. DEFERRED TAXATION

Group Company

2000 1999 2000 1999

RM RM RM RM

At 1 July 1999/1998 674,000 1,072,000 421,000 558,000

Transfer from/(to) income statements (note 23) 233,500 (398,000) 1,299,000 (137,000)

At 30 June 907,500 674,000 1,720,000 421,000

Deferred taxation provided for in the accounts:

Timing differences on the excess of capital

allowances over the corresponding depreciation 744,500 608,000 703,000 567,000

Other short term timing differences 163,000 66,000 1,017,000 (146,000)

907,500 674,000 1,720,000 421,000

Deferred taxation not provided for in the accounts:

Timing differences on the excess of capital

allowances over the corresponding depreciation 15,000 - - -

Other short term timing differences 129,000 - - -

Unabsorbed capital allowances and tax losses

of a subsidiary corporation available for set-off

against its future taxable profits (note 23) 193,000 253,000 - -

Deferred tax debits 337,000 253,000 - -

Deferred taxation is not provided on the revaluation surplus arising from the revaluation of landed properties as it is not the

intention of the Directors to dispose the properties concerned in the foreseeable future.





18. SHARE CAPITAL

2000 1999

RM RM

Ordinary shares of RM1 each:

Authorised:

At 1 July 1999/1998 50,000,000 50,000,000

Created during the financial year 50,000,000 -

At 30 June 100,000,000 50,000,000

Issued and fully paid:

At 1 July 1999/1998 20,363,000 19,995,000

Issued during the financial year pursuant to Employees’

Share Option Scheme at RM1.54 per share 432,000 368,000

At 30 June 20,795,000 20,363,000

19. DIVIDENDS

2000 1999

RM RM

Ordinary dividends proposed or paid:

Proposed first and final of 5% (1999: 3%) less tax 748,620 439,841

Under provision of prior financial year ’s proposed

first and final dividend paid 993 -

749,613 439,841

The under provision of the prior financial year’s proposed first and final dividend is in respect of new ordinary shares issued

pursuant to the Employees’ Shares Option Scheme, subsequent to the previous financial year end but before book closure

date for dividend entitlement.

20. REVENUE

Group Company

2000 1999 2000 1999

RM RM RM RM

Sales of goods less returns

and discounts 96,220,067 79,187,182 61,246,063 36,943,819

Royalties from sub-licensees 367,650 560,400 - -

Dividend income - - 4,437,500 10,587,500

96,587,717 79,747,582 65,683,563 47,531,319





21. PROFIT BEFORE EXCEPTIONAL ITEMSGroup Company

2000 1999 2000 1999

RM RM RM RM

This has been arrived at:

after charging:

Amortisation of intangible assets 192,200 192,200 - -

Auditors’ remuneration:

Auditors of the Company 71,000 60,800 29,000 27,800

Other auditors of a subsidiary corporation:

Charge for the financial year 9,034 9,238 - -

Over provision in respect of prior financial year - (1,155) - -

Depreciation 2,259,459 2,062,506 750,751 568,709

Directors’ remuneration:

Fees 204,000 102,000 204,000 102,000

Salaries and other benefits* 638,400 355,044 226,240 171,364

Fixed assets written off 60 1,113 - -

Interest expenses:

Bank overdrafts 136,842 200,591 34,188 7,569

Bankers’ acceptances 834,773 1,504,411 365,689 621,369

Hire purchase 101,143 111,551 34,331 22,720

Term loans 189,370 14,498 189,370 14,498

Trust receipts - 36,066 - 22,860

Others - 2,174 - -

Loss on sale of fixed assets - - - 684

Professional fees paid for services

rendered by a firm of which

an ex-Director is a partner 8,230 2,530 - -

Realised loss on foreign exchange 6,263 30,574 - 2,572

Rental expenses:

Equipment 1,197 82,728 - -

Land and buildings 1,698,938 1,939,116 142,316 212,000

Royalties 846,674 171,338 - -

and crediting:

Dividends from unquoted equity shares

in subsidiary companies - - 4,437,500 10,587,500

Gain on foreign exchange:

Realised 408 57,842 408 -

Unrealised 7,666 - - -

Interest received from:

Cash advances to subsidiary companies - - 270,464 -

Fixed deposits - 119,472 - 119,472

Others 4,429 - 4,000 -

Profit on sale of fixed assets 152,540 57,828 153,180 -

Rental income from:

Subsidiary companies:

Land and buildings and store equipment - - 510,000 85,400

Third parties:

Land and buildings 212,215 237,315 212,215 237,315

* The estimated monetary value of other

benefits not included in the above received

by certain Directors 27,651 12,500 27,651 12,500





22. EXCEPTIONAL ITEMS

Group Company

2000 1999 2000 1999

RM RM RM RM

Stocks write-downs 588,970 4,322,609 - -

Provision for doubtful debts 186,547 311,866 - 1,162,498

Provision for diminution in value of unquoted

equity shares in a subsidiary corporation - - - 159,000

775,517 4,634,475 - 1,321,498

23. TAXATION

Group Company

2000 1999 2000 1999

RM RM RM RM

Taxation on the profit of the financial year:

Malaysian income tax 4,102,000 (170,000) 1,900,000 2,000,000

Transfer to/(from) deferred taxation (note 17) 233,500 (398,000) 1,299,000 (137,000)

4,335,500 (568,000) 3,199,000 1,863,000

(Over)/under provision of taxation in respect

of prior financial years:

Malaysian income tax (1,408,312) - (1,246,232) -

Singapore income tax - 5,724 - -

2,927,188 (562,276) 1,952,768 1,863,000

The actual rate of taxation on the Group’s and the Company’s profit of the financial year is more than the standard rate of

tax applicable to company profits due to certain expenses being disallowed for tax purposes.

Other than the taxation charge on dividend income of the Company, there was no taxation charge on the Group’s and the

Company’s profit of the previous financial year as the amount of income tax payable was waived in accordance with the

Income Tax (Amendment) Act, 1999.

At the balance sheet date, the subsidiary corporation incorporated in Singapore, has estimated unabsorbed tax losses

amounting to approximately RM740,000 (1999: unabsorbed capital allowances and tax losses amounting to approximately

RM972,000), which can, subject to the approval by the Singapore tax authorities, be carried forward and utilised to offset

against its future taxable profits. These unabsorbed capital allowances and tax losses have been taken into consideration in

the computation of deferred tax disclosed in note 17.

Subject to the approval of the tax authorities, the Company has:

(i) tax exempt income for the payment of tax exempt dividends of approximately RM2,837,500 (1999: Nil); and

(ii) sufficient tax credit under Section 108 of the Income Tax Act, 1967, to frank the payment of dividends out of the

balance of its retained profits.





24. EARNINGS PER SHARE

The basic earnings per share has been calculated by dividing the Group’s net profit for the financial year of RM6,282,664

(1999: RM4,319,245) by the weighted average number of ordinary shares of the Company in issue during the financial year

of 20,525,000 (1999: 20,025,667).

The fully diluted earnings per share has been calculated by dividing the Group’s net profit for the financial year of

RM6,282,664 (1999: RM4,319,245) by the weighted average number of ordinary shares of 20,749,234 (1999: 20,149,156)

that would be in issue at the end of the financial year had all the exercisable share options as at the end of the financial year

under the Company’s Employees’ Share Option Scheme been exercised.

25. SIGNIFICANT RELATED PARTY AND OTHER INTERCOMPANY TRANSACTIONS

(a) During the financial year, the Group and the Company, in the ordinary course of business, transacted with certain related

parties. The more significant of such transactions are as follows:

Group Company

Nature of transactions Name of related party 2000 1999 2000 1999

RM RM RM RM

Purchase of garments Goodtex Marketing 2,660,479 3,363,589 2,260,479 3,363,589

Sdn. Bhd. (1)

Sale of yarn and fabrics Goodtex Marketing 2,383,969 3,277,652 2,383,969 3,277,652

and provision of Sdn. Bhd. (1)

commission dyeing

Sale of fabrics and La City Apparel Sdn. 520,781 599,673 520,781 599,458

accessories Bhd. (1)

Purchase of fabrics Goldwin Garments - 909,736 - -

Industry (1)

Rental of apartments Chi Kuei Yung & Sons 102,600 21,600 21,600 21,600

and an industrial Realty Sdn. Bhd. (2)

building

Rental of apartments Jenapine Sdn. Bhd. (3) 21,600 21,600 16,200 21,600

Rental of shoplots Eldorado Resources - 7,500 - -

Sdn. Bhd. (4)

Trade margins for The Store Corporation 2,582,451 2,386,771 - -

consignment transactions Berhad Group (5)





25. SIGNIFICANT RELATED PARTY AND OTHER INTERCOMPANY TRANSACTIONS (Cont’d)

(1) Entities in which a Director, Madam Foo Yak Chu is deemed to have interests.

(2) A company in which the Directors, Madam Chi Oi Meng, Madam Sze Tho Pooi Lin, Mr. Khoo Henn Kuan and

Mr. Chi Kin Meng have interests.

(3) A company in which Madam Chi Oi Meng and Mr. Khoo Henn Kuan have interests.

(4) Wholly-owned subsidiary company of Chi Kuei Yung & Sons Realty Sdn. Bhd.

(5) A group of companies in which a Director, Y. Bhg. Dato’ Azizi Yom Ahmad had an interest till 31 January 2000.

(b) During the financial year, the Company sold ready-made garments amounting to RM46,584,343 (1999: RM25,372,363) to its

subsidiary corporations.

26. COMMITMENTS

At the balance sheet date, the Group and the Company have the following commitments:

Company

2000 1999 2000 1999

RM RM RM RM

Non-cancellable leases of premises:

Expiring within one year 705,518 1,126,752 - 40,000

Expiring between two to five years 731,677 232,981 - -

1,437,195 1,359,733 - 40,000

Capital commitments contracted

for but not provided in the accounts 911,000 2,243,000 796,000 2,243,000

27. CONTINGENT LIABILITIES (UNSECURED)

Company

At the balance sheet date, the Company has contingent liabilities in respect of the following:

2000 1999

RM RM

Corporate guarantees granted to third parties for banking

and financing facilities of the subsidiary corporations 25,376,000 22,592,000

Corporate guarantee granted to a third party for rental

of shoplot of a subsidiary corporation 85,000 583,000

25,461,000 23,175,000

Group





28. EVENT SUBSEQUENT TO THE BALANCE SHEET DATE

Subsequent to the balance sheet date, the Company’s issued and fully paid ordinary share capital was increased from

RM20,795,000 to RM20,828,000 by the issues of 33,000 ordinary shares of RM1 each pursuant to the Employees’ Share

Option Scheme.

29. SEGMENT INFORMATION ANALYSIS

Profit/(loss)

Revenue before taxation Assets employed

2000 1999 2000 1999 2000 1999

RM RM RM RM RM RM

By activity

Manufacturing 14,661,720 11,571,456 2,341,405 (71,530) 37,699,220 38,228,483

Wholesaling,

retailing and

distribution 81,925,997 68,176,126 6,868,447 3,828,499 54,388,945 45,112,289

96,587,717 79,747,582 9,209,852 3,756,969 92,088,165 83,340,772

By geographical

location

Malaysia 92,397,103 76,237,779 8,875,352 3,988,188 90,592,244 82,252,141

Singapore 4,190,614 3,509,803 334,500 (231,219) 1,495,921 1,088,631

96,587,717 79,747,582 9,209,852 3,756,969 92,088,165 83,340,772

30. COMPARATIVE FIGURES

Certain comparative figures have been reclassified to conform with the current financial year’s presentation.



(A) DISTRIBUTION OF SHAREHOLDINGS AS AT 13 NOVEMBER 2000

Share Range No. of Shareholders % No. of Shares %

1 - 1,000 948 48.073 948,000 4.549

1,001 - 5,000 746 37.830 2,202,750 10.571

5,001 - 10,000 155 7.860 1,292,000 6.200

10,001 - 100,000 106 5.375 2,557,000 12.271

100,001 - 1,000,000 15 0.761 5,545,000 26.610

1,000,001 and above 2 0.101 8,293,250 39.799

1,972 100.000 20,838,000 100.000

(B) TWENTY LARGEST SHAREHOLDERS AS AT 13 NOVEMBER 2000

% of Issued

Name of shareholders No. of Shares Capital

1. Chi Kuei Yung & Sons Realty Sdn Bhd 7,231,000 34.701

2. Southern Nominees (Tempatan) Sdn Bhd 1,062,250 5.098

-Pledged Securities Account for

Dato' Azizi bin Yom Ahmad

3. Choi Choong Hin 892,000 4.281

4. Chi Oi Meng 883,000 4.237

5. Multi-Purpose Credit Sdn Bhd 848,000 4.069

6. Khoo Henn Kuan 536,000 2.572

7. Tan Eng Lan 424,000 2.035

8. Kong Choon Thai 392,000 1.881

9. Khoo Kar Toi 336,000 1.612

10. Tang Kiau @ Tan Koon Tiang 310,000 1.488

11. Fong Chan Moi 263,000 1.262

12. Mohammad Allaudin Bin Md Ali 227,000 1.089

13. Hong Leong Finance Berhad 153,000 0.734

-Pledged Securities Account for

Chan Wai Pun

S t a t i s t i c sS h a re h o l d i n g s



(B) TWENTY LARGEST SHAREHOLDERS AS AT 13 NOVEMBER 2000 (Cont’d)

% of Issued

Name of shareholders No. of Shares Capital

14. RHB Nominees (Tempatan) Sdn Bhd 151,000 0.725

-Yuen Siew Van

15. Perabut Kupang Sdn Bhd 134,000 0.643

16. Lim Keat Pheng 117,000 0.561

17. Lembaga Tabung Haji 100,000 0.480

18. Tay Teck Ho 90,000 0.432

19. Choi Yu Loong 88,000 0.422

20. Lim Keat Wah 84,000 0.403

14,321,250 68.727

(C) SUBSTANTIAL SHAREHOLDERS AS AT 13 NOVEMBER 2000

(as recorded in the register of Substantial Shareholders)

Shareholdings in % of Shareholdings in % of

substantial Issued which substantial Issued

shareholders' Capital shareholders Capital

names are deemed to

have interests

1. Chi Kuei Yung & Sons Realty Sdn. Bhd. 7,231,000 34.70 - -

2. Dato' Azizi Yom Ahmad 2,441,000 11.71 - -

3. Chi Oi Meng 883,000 4.24 7,767,000 37.27

4. Khoo Henn Kuan 536,000 2.57 8,114,000 38.94

5. Chi Kin Meng - - 8,650,000 41.51

6. Sze Tho Pooi Lin - - 8,650,000 41.51

7. Khoo Henn Kiew - - 536,000 2.57

8. Khoo Henn Loi - - 536,000 2.57

9. Southern Nominees (Tempatan) Sdn. Bhd. 1,062,250 5.10 - -

-for Dato' Azizi bin Yom Ahmad

10. Multi-Purpose Credit Sdn. Bhd. 848,000 4.07 - -

11. Multi-Purpose Credit Holdings Sdn. Bhd. - - 848,000 4.07

12. Multi-Purpose Capital Holdings Berhad - - 848,000 4.07

Statistics (Cont’d)

S h a re h o l d i n g s



(C) SUBSTANTIAL SHAREHOLDERS AS AT 13 NOVEMBER 2000 (Cont’d)

(as recorded in the register of Substantial Shareholders)


substantial Issued which substantial Issued

shareholders' Capital shareholders Capital

names are deemed to

have interests

13. Multi-Purpose Holdings Berhad - - 848,000 4.07

14. Magnum Corporation Berhad - - 848,000 4.07

15. Secfin Nominees (Tempatan) Sdn. Bhd.

-for Choi Choong Hin 747,000 3.58 - -

16. Choi Choong Hin 145,000 0.70 88,000 0.42

Authorised Share Capital RM100,000,000.00

Issued and Fully Paid-Up Capital RM 20,838,000.00

Class Of Shares Ordinary shares of RM1.00 per share

(D) DIRECTORS' INTEREST IN SHARES AS AT 21 JULY 2000


directors' Issued which directors Issued

names Capital are deemed to Capital

have interests

1. Dato' Azizi Yom Ahmad 3,503,250 16.81 - -

2. Chi Oi Meng 883,000 4.24 7,767,000 37.27

3. Khoo Henn Kuan 536,000 2.57 8,114,000 38.94

4. Dato' Paduka Professor Dr.

Khairuddin bin Mohamed Yusof - - - -

5. Foo Yak Chu 4,000 0.02 - -

6. Chi Kin Meng - - 8,650,000 41.51

7. Sze Tho Pooi Lin - - 8,650,000 41.51

Voting Right of Shareholders

On a show of hands every member personally present or by attorney or proxy shall have one vote and in the case of a poll shall

have one vote for every share held by him. No person, other than a member duly registered and who shall have paid everything

for the time being due from him and payable to the Company, shall be entitled to vote on any question either personally or by

proxy or as proxy for another member.

42

Statistics (Cont’d)

S h a re h o l d i n g s



P ro p e rt i e sList of

PROPERTIES AS AT 30 JUNE 2000

Net book

Area Approximate value as at Description and

Location Tenure Land Built-up age of building 30.6.2000 current use

sq ft sq ft years RM

Lots 59-60, Freehold 30,000 39,078 26 (single and 3,698,898 Single and a 2-storey

Lorong Kuang Bulan, 2-storey building) factory building annexed

Taman Kepong, 16 (3-storey to a 3-storey warehouse

52100 Kuala Lumpur building) and office building for

own industrial use and

corporate office

Lot 58, Freehold 15,000 9,530 20 2,055,465 Single-storey detached

Lorong Kuang Bulan, factory building annexed

Taman Kepong, to a 2 1/2-storey office

52100 Kuala Lumpur building for own

industrial use

Lot 46, Freehold 16,500 30,192 12 3,160,020 4-storey detached

Lorong Kuang Bulan, industrial building for

Taman Kepong, own industrial use

52100 Kuala Lumpur and office

No. 11, 99-year lease 1,800 3,607 24 450,000 2-storey mid-terraced

Lorong Segambut Pusat expiring on light industrial building

Satu, Segambut, 16.6.2067 for investment purpose

51200 Kuala Lumpur

No. 101, Freehold 1,650 6,310 20 1,550,000 3 1/2 storey mid-terraced

Jalan SS21/1A, shop/office for

Damansara Utama, investment purpose

47400 Petaling Jaya

Nos. 4 & 5, 99-year lease 3,080 12,320 16 1,800,000 4-storey mid-terraced

Jalan 54, Desa Jaya, expiring on shop offices for own

52100 Kuala Lumpur 8.3.2081 industrial use and

investment purpose

Nos. 50-1, 50-2, 52-1, 99-year lease - 9,820 5 606,656 3-storey terrace factories

52-2, 54-1, 54-2, 56-1, expiring on for own industrial use

56-2, 58-2 and 60-2, 10.1.2087

Jalan 12/34A,

Kepong Entrepreneurs Park,

52100 Kuala Lumpur

Nos. 39-2A, 39-3A and 99-year lease - 3,981 5 224,868 Apartments, used as

37-3A, Jalan 3/34A, expiring on workers’ hostel

Kepong Entrepreneurs Park, 10.1.2087

52100 Kuala Lumpur

Lots no. T125 and T127, 99-year lease, 158,352 - - 3,426,216 Vacant industrial land,

Pulau Indah Kleen Centre, yet to under development

Section 4, Pulau Indah commence

Industrial Park, Pulau Indah,

Selangor

This page has been intentionally left blank.

HING YIAP KNITTING INDUSTRIES BERHAD( 2 2 4 1 4 - V )

(Incorporated in Malaysia)

PROXY FOR MI/We _______________________________________________________________________________________________________________

(FULL NAME IN BLOCK LETTERS)

of __________________________________________________________________________________________________________________

being a member/members of HING YIAP KNITTING INDUSTRIES BERHAD, hereby appoint __________________________________

____________________________________________________________________________________________________________________(FULL NAME IN BLOCK LETTERS)

of __________________________________________________________________________________________________________________

or failing him/her the Chairman of the Meeting as my/our proxy/proxies to attend and to vote for me/us on my/our behalf at the

Twenty-Fifth Annual General Meeting of the Company to be held at Bilik Kelantan, Putra World Trade Centre, 41, Jalan Tun Ismail,

50480 Kuala Lumpur on Thursday, 21 December 2000 at 10.00 a.m. or at any adjournment thereof, on the following resolutions

referred to in the notice of Annual General Meeting:

My/Our proxy/proxies is/are to vote as indicated below:

RESOLUTION 1 2 3 4 5 6 7 8

For

Against

Please indicate with an “X” in the spaces provided on how you wish your votes to be cast. If you do not so, the proxy/proxies will

vote or abstain from voting at his/their discretion)

Dated this ___________ day ___________ 2000

_____________________________________

Signature/Common Seal

Notes:

(1) A member entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies (but not more than two) to attend and vote in

his stead. Where a member appoints two (2) proxies, the appointment shall be invalid unless he specifies the proportions of his holdings to

be represented by each proxy. A proxy may but need not be a member of the Company. If a proxy is granted to a non-member of the

Company, he must be, under the provisions of Section 149(1)(b) of the Companies Act, 1965, an advocate, an approved company auditor or

a person approved by the Registrar of Companies.

(2) The instrument appointing a proxy must reach the Registered Office of the Company at Lots 59-60, Lorong Kuang Bulan, Taman Kepong,

52100 Kuala Lumpur, not less than forty-eight (48) hours before the time set for the meeting or any adjournment thereof.

(3) If the appointer is a corporation, this proxy form should be executed under its common seal.

No. of shares held

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Stamp/Setem

HING YIAP KNITTING INDUSTRIES BERHAD ( 2 2 4 1 4 - V )

Lots 59-60, Lorong Kuang Bulan

Taman Kepong

52100 Kuala Lumpur

Please fold here

Please fold here



Documents

HING YIAP KNITTING INDUSTRIES BERHAD · 4 hing yiap knitting industries berh a d annual re p o r t 2000 2 2 4 1 4 - V incorporated in Malaysia C o m m i t t e e Audit MEMBERS OF THE