TAN␣ CHONG␣ MOTOR␣ HOLDINGS␣ BERHAD - …tanchonggroup.listedcompany.com/misc/ar1999.pdf · Dato’ Ng Mann Cheong DSSA, SMP, JP AUDIT COMMITTEE MEMBERS Geh Cheng Hooi Chairman

TA N ␣ C H O N G ␣ M OTO R ␣ H O L D I N G S ␣ B E R H A D(12969-P)

A N N U A L ␣ R E P O R T ␣ 1 9 9 9

Notice of Annual General Meeting 1

Corporate Information 2

Business Divisions 3

Chairman’s Report / Laporan Pengerusi 4

Listing of New Companies 12

Shareholders’ Statistics

Daily Share Prices & Volume Traded on KLSE 14

Audit Committee 16

Financial Statements 17

Group Properties 58

Form of Proxy

Contents

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1TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN that the Twenty-Eighth Annual General Meeting of TAN CHONG MOTOR HOLDINGS BERHAD will be held at3rd Floor, 21 Jalan Ipoh Kecil, 50350 Kuala Lumpur, Malaysia on Wednesday, 24 May 2000 at 11:00 a.m. to transact the following businesses:

Ordinary Businesses

1. To receive and consider the Statement of Accounts for the year ended 31 December 1999 together with theReports of the Directors and Auditors thereto.

2. To re-appoint Dato’ Tan Kim Hor as Director pursuant to Section 129 (6) of the Companies Act, 1965.

3. To re-elect the following Directors in accordance with Article 101 of the Company’s Articles of Association:

3.1 Dato’ Tan Heng Chew3.2 Encik Azman bin Badrillah

4. To approve payment of fees to Directors.

5. To re-appoint the Auditors and authorise the Directors to fix their remuneration.

Special Business

6. To consider and if thought fit, pass with or without modifications, the following Special Resolution –

“Proposed Amendments to the Articles of Association of the Company and the Adoption of New Articles ofAssociation

RESOLVED THAT(a) in order to be consistent with

(i) the amendments to the Securities Industry (Central Depositories) Act 1991 (“SICDA”) pursuant tothe Securities Industry (Central Depositories) (Amendment) (No. 2) Act 1998; and

(ii) the amendments to the Companies Act, 1965 (“CA”) pursuant to the Companies (Amendment)(No. 2) Act, 1998; and

(iii) the amendments to the Rules of Malaysian Central Depository Sdn Bhd and the Main Board ListingRequirements of Kuala Lumpur Stock Exchange as a consequence of the amendments to the SICDAand the CA; and

(b) further, in order(i) to provide for the purchase by the Company of its own shares; and(ii) to be consistent with the Main Board Listing Requirements of Kuala Lumpur Stock Exchange and

the CA; and(iii) to enhance the administration of the internal affairs of the Company,

the Articles of Association as contained in Appendix A to the Circular to Shareholders of the Company dated 28April 2000 accompanying this Notice of Annual General Meeting (with deletions from and additions to the existingArticles of Association marked-up for ease of reference) be and are hereby approved and adopted as the Articlesof Association of the Company, in substitution for, and to the exclusion of all the existing Articles of Association.”

7. To transact any other business of the Company of which due notice shall have been received.

By Order of the Board

TAN ENG GUANCompany Secretary

Kuala Lumpur28 April 2000

Resolution 1

Resolution 2

Resolution 3

Resolution 4

Resolution 5

Resolution 6

Resolution 7

Notes:1. A member entitled to vote is entitled to appoint a proxy or proxies (but not more than two) to attend and vote for him. A proxy need not be a member

of the Company, and, where there are two proxies, the number of shares to be represented by each proxy must be stated.2. In the case of a corporation, the form of proxy appointing a corporate representative must be executed under seal or under the hand of an officer or

attorney duly authorised.3. To be valid, the form of proxy must be deposited at the Registered Office of the Company, 62 - 68 Jalan Ipoh, 51200 Kuala Lumpur, Malaysia, not less

than forty-eight hours before the time appointed for the meeting.

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2 TA N ␣ C H O N G ␣ M O T O R ␣ H O L D I N G S ␣ B E R H A D ␣ ( 1 2 9 6 9 - P )

Corporate Information

D I R E C T O R S

Dato’ Tan Kim Hor DPMS, KMN, JP

Chairman

Ahmad bin Abdullah

Vice Chairman

Dato’ Tan Heng Chew DJMK, JP

Executive Deputy Chairman

Tan Eng Soon

Managing Director

Azman bin Badrillah

Geh Cheng Hooi

Yoshi Iwashita

Dato’ Ng Mann Cheong DSSA, SMP, JP

A U D I T C O M M I T T E E M E M B E R S

Geh Cheng Hooi

Chairman (Independent Non-executive Director)

Dato’ Ng Mann Cheong DSSA, SMP, JP

(Independent Non-executive Director)

Dato’ Tan Heng Chew DJMK, JP

(Executive Director)

C O M P A N Y S E C R E T A R Y

Tan Eng Guan

A S S I S T A N TC O M P A N Y S E C R E T A R Y

Chan Yoke-Lin

R E G I S T E R E D O F F I C E

62 - 68 Jalan Ipoh

51200 Kuala Lumpur

Telephone : (03) 442 7644 / 441 1044

Facsimile : (03) 442 7198

Email : [email protected]

R E G I S T R A R S

M & C Services Sdn Bhd

11th Floor Wisma Damansara

Jalan Semantan

Damansara Heights

50490 Kuala Lumpur

Telephone : (03) 255 7188

A U D I T O R S

KPMG

Wisma KPMG

Jalan Dungun

Damansara Heights

50490 Kuala Lumpur

S T O C K E X C H A N G E L I S T I N G

Kuala Lumpur Stock Exchange

(Listed on the Main Board in 1974)

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T A N C H O N G M O T O R H O L D I N G S B E R H A D

Business Divisions

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A S S E M B L Y

• Motor vehicles

S A L E S A N D D I S T R I B U T I O N

• Passenger Cars

• Light Commercial Vehicles

• Trucks

• Buses

A F T E R - S A L E S S E R V I C E S

• Spare Parts

• Workshop

F I N A N C I A L P R O D U C T S A N D S E R V I C E S

• Hire Purchase

• Insurance

P R O P E R T Y

• Management and Investment


Cha i r man ’sA T U R N I N G P O I N T

The Group completed the internal re-organisation

of its Autoparts and Non-Motor Divisions involving

the regrouping of subsidiaries of the two Divisions

under APM Automotive Holdings Berhad (“APM”) and

Warisan TC Holdings Berhad (“Warisan”) respectively

during the last quarter of 1999. APM and Warisan were

subsequently listed on Kuala Lumpur Stock Exchange

on 15 December 1999. I am confident that the new

corporate structures will sharpen further management

and strategic focus of the respective groups. The listing

of APM and Warisan has also unlocked hidden value for

the shareholders of the Company.

The new Group, with a single core business in automotive

assembly and distribution, will look toward the future with

a fresh perspective. It will gear up itself for the impending

structural changes together with other challenges and

opportunities that may come about as a result of the

consolidation of the automotive industry, the advent of

AFTA and the recovery of the domestic market.

T I T I K P E R U B A H A N

Pada suku akhir 1999, Kumpulan telah menyelesaikan

penyusunan semula dalaman yang melibatkan Bahagian

Alat Ganti Automotif diletakkan di bawah APM

Automotive Holdings Berhad (APM) dan Bahagian Bukan

Motor di bawah Warisan TC Holdings Berhad (Warisan).

Selepas itu, APM dan Warisan telah disenaraikan di

Bursa Saham Kuala Lumpur pada 15 Disember 1999.

Saya yakin bahawa struktur korporat baru ini akan

mempertingkatkan lagi fokus pengurusan dan strategik

kedua-dua kumpulan tersebut. Penyenaraian APM dan

Warisan juga menyerlahkan nilai tersembunyi kepada

para pemegang saham sekalian.

Kumpulan baru ini yang mempunyai perniagaan teras

tunggal dalam pemasangan dan pengedaran automotif

akan mengorak langkah ke hadapan dengan perspektif

yang lebih mantap. Ia akan mempersiapkan dirinya untuk

menghadapi perubahan struktur yang akan berlaku

serta berbagai cabaran serta peluang lain yang akan

muncul berikutan penyatuan industri automotif,

isu AFTA dan pemulihan pasaran domestik.

The enhanced Nissan Serena

- an ideal recreational vehicle

Nissan Serena yang diperbaharui

- kenderaan rekreasi terkini

L A P O R A N ␣ P E N G E R U S I

1999 WAS A REMARKABLE YEAR AND

A TURNING POINT FOR THE GROUP.

1999 ADALAH SATU TAHUN MENGKAGUMKAN YANG

MEMBAWA TITIK PERUBAHAN KEPADA KUMPULAN.


Nissan Cefiro Brougham V6

- breaking new grounds

Nissan Cefiro Brougham V6

- tahap keunggulan

yang baru

Nissan VQ V6 DOHC engine

- nominated one of the

world’s best engines

Enjin Nissan VQ V6 DOHC

- dicalonkan sebagai salah

satu enjin terbaik di dunia

1 9 9 9 G R O U P A C C O U N T SP R E S E N T A T I O N

With the completion of the Proposed Autoparts and

Non-Motor Schemes (“Demerger Scheme”) set out in

the Circular to Shareholders dated 29 September 1999

(“Circular”) during the fourth quarter of 1999,

the financial accounts of the Group had been prepared

to reflect that of the new corporate structure.

The operating results of the Group, therefore, were the

results of the Company and subsidiaries remaining in

the Group and excluded those of the Autoparts and

Non-Motor Divisions.

Arising from the above method of presentation of

accounts, dividends received from the subsidiaries under

the Autoparts and Non-Motor Divisions pursuant to

the internal re-organisation were shown as part of the

exceptional items for the period. The disposal by the

Company of its investments in APM and Warisan to the

Controlling Shareholders (as defined in the Circular) and

Bumiputera investors approved by Ministry of International

Trade and Industry (“MITI”) resulted in a surplus of

RM51 million for the year. This surplus was also included

as part of the exceptional items in the accounts.

The proceeds from the disposals were distributed as

dividends to shareholders of the Company.

P E M B E N T A N G A N A K A U NK U M P U L A N 1 9 9 9

Dengan penyelesaian cadangan penyusunan semula

Skim Alat Ganti Automotif dan Bukan Motor (“Skim

Pengasingan”) sepertimana yang dicatatkan dalam

Surat Pekeliling kepada Pemegang Saham Syarikat

bertarikh 29 September 1999 pada suku keempat 1999,

akaun kewangan kumpulan telah disediakan untuk

memberi gambaran struktur korporat baru ini.

Justeru itu, keputusan Kumpulan hanya meliputi

keputusan Syarikat dan syarikat-syarikat subsidiari

yang kekal dalam Kumpulan dan tidak termasuk

keputusan Bahagian Alat Ganti Automotif dan Bahagian

Bukan Motor.

Kaedah pembentangan akaun seperti di atas

menyebabkan dividen diterima daripada syarikat-

syarikat subsidiari di bawah Bahagian Alat Ganti

Automotif dan Bahagian Bukan-Motor berhubung

dengan penyusunan semula organisasi dalaman ini

ditunjukkan sebagai sebahagian daripada perkara

terkecuali bagi tempoh ini. Pelupusan pelaburan syarikat

dalam APM dan Warisan kepada Pemegang Saham

Memegang Kawalan (seperti yang diterangkan dalam

Surat Pekeliling Saham) dan Pelabur Bumiputera yang

diluluskan oleh Kementerian Perdagangan Antarabangsa

R E P O R T



TOTAL ASSETS

JUMLAH ASET

The comparative figures for the cumulative

period were restated accordingly, in line with

the current year presentation.

R E V I E W O F R E S U L T S

Passenger and light commercial vehicles

Demand for new motor vehicles improved

with the return of consumer confidence.

Based on the registration statistics, the total

industry volume for 1999 of 288,547 units

represented a 76% increase from 1998.

For the year as a whole, total unit sales of

Nissan passenger and light commercial vehicles

was about double that achieved in 1998.

Nissan’s sales volume received a boost after

the second half of 1999 with the launch of the

new facelift Nissan C22 Vanette in July 1999.

The Nissan Cefiro 2.0L V6 Excimo and Cefiro

3.0L V6 Brougham introduced in early 1999

with fresh new looks and attractive pricing

were very well received and helped to propel

Nissan’s market share in the 2 to 3 liter capacity

passenger car segment to a respectable 12%.

Nissan’s Serena MPV and Sentra Super Saloon

models continued to enjoy good following in

their respective segments. Consequently, their

sales volume increased in tandem with the

overall market.

With further improvement in business

conditions, the fourth quarter saw the

implementation of further price increases

for several Nissan vehicle models and the

introduction of the new facelift Serena.

Riding on a recovering market, the Group

further intensified its marketing promotional

activities.

dan Industri (MITI) telah menghasilkan lebihan

sebanyak RM51 juta pada tahun ini. Lebihan

ini juga meliputi sebahagian daripada perkara

terkecuali dalam akaun ini. Kutipan daripada

penjualan ini telah diagihkan sebagai dividen

kepada para pemegang saham Syarikat.

Angka-angka perbandingan bagi tempoh

terkumpul telah dinyatakan semula sewajarnya,

selaras dengan pembentangan tahun semasa.

T I N J A U A N K E P U T U S A N

Kenderaan penumpang dan

perdagangan ringan

Pengembalian keyakinan pengguna telah

mendorong peningkatan permintaan untuk

kenderaan bermotor baru. Statistik pendaftaran

menunjukkan jumlah volum dalam industri

sebanyak 288,547 unit pada tahun 1999

merupakan lonjakan sebanyak 76% daripada

pencapaian tahun 1998. Jumlah unit jualan

kenderaan penumpang dan perdagangan

ringan Nissan bagi tahun ini secara

keseluruhannya meningkat sekali ganda

berbanding pada tahun 1998.

Volum jualan Nissan melonjak selepas tempoh

setengah tahun kedua 1999 berikutan

pelancaran Nissan C22 Vanette berwajah baru

pada bulan Julai 1999. Nissan Cefiro 2.0L V6

Excimo dan Cefiro 3.0L V6 Brougham yang

diperkenalkan pada awal tahun 1999 dengan

wajah baru dan harga yang menarik juga

mendapat sambutan yang amat menggalakkan

dan membantu mempertingkatkan bahagian

pasaran Nissan dalam segmen kereta

penumpang kapasiti 2 hingga 3 liter kepada

12%. Model Nissan Serena MPV dan Sentra

Super Saloon terus menarik minat orang ramai

dalam segmen masing-masing. Justeru itu,

volum jualan masing-masing meningkat selaras

dengan peningkatan pasaran keseluruhan.

999897

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1,19

7

1,01

9

934

Nissan Diesel

Prime Mover

complete with

curtainsider body

‘Nissan Diesel

Prime Mover’

dilengkapi

dengan badan

‘curtainsider’


New look Vanette introduced in 1999

Vanette berwajah baru yang

diperkenalkan pada tahun 1999

Medium and heavy commercial vehicles

In late 1997, the Group began its involvement

in the medium capacity (5 to 7 ton) truck

segment with the introduction of 2 medium-

duty truck models. The total industry volume

for the medium-duty trucks was about 3,900

units in 1999, an increase of 86% from 1998.

Our sale of Nissan Diesel trucks in this capacity

range jumped to 305 from the previous 39 units

after we successfully re-shaped the distribution

structure of the business unit to strengthen its

coverage in the new arena.

The heavy-duty range with a total industry

volume of about 1,500 units showed no

increase over the previous year as the industry

continued to be plagued with excess capacity.

Our share was maintained at about 24% of

total market. This business unit successfully

achieved the primary objective to bring

inventory to a healthy level during the year

partly through exports. Given the depressed

market and excess inventory carried by

various distributors, profit margin was low.

With adequate provisions previously made in

respect of slow moving stocks, this business unit

managed to report a small profit for the year.

Vehicle assembly

In anticipation of further increase in demand,

various programmes were implemented to

step up productivity and efficiency in the

assembly plant. Shopfloor management

courses were organised to inculcate good

shopfloor practices and to seek continuous

improvements in Quality, Cost and Delivery

targets. The management also conducted

Keadaan perniagaan yang semakin bertambah

baik telah membolehkan kenaikan harga

selanjutnya dilaksanakan bagi beberapa model

kenderaan Nissan dan pengenalan Serena

berwajah baru pada suku keempat tahun ini.

Kumpulan telah memperhebatkan bagi aktiviti

promosi pemasarannya sejajar dengan

pemulihan di pasaran.

Kenderaan perdagangan sederhana

dan berat

Kumpulan telah memulakan penglibatannya

ke dalam segmen trak berkapasiti sederhana

(5 hingga 7 tan) melalui pengenalan 2 model

trak bermuatan sederhana pada lewat 1997.

Jumlah volum industri bagi trak bermuatan

sederhana mencapai angka kira-kira 3,900 unit

pada tahun 1999, meningkat 86% daripada

pencapaian tahun 1998. Jualan trak Nissan

Diesel dalam kapasiti ini pula melonjak

daripada 39 unit pada tahun sebelumnya

kepada 305 unit pada tahun ini selepas struktur

pengedaran unit perniagaan tersebut berjaya

disusun semula bagi mengukuhkan liputannya

dalam bidang ini.

Volum trak bermuatan berat dalam industri

sebanyak 1,500 unit tidak menunjukkan

sebarang pertambahan daripada pencapaian

pada tahun sebelumnya kerana industri ini

terus dilanda masalah lebihan kapasiti.

Kami telah mengekalkan bahagian pasaran

kami sebanyak kira-kira 24% daripada jumlah

pasaran. Unit perniagaan ini berjaya mencapai

objektif utamanya untuk memastikan inventori

berada di paras yang sihat pada tahun itu

dengan sebahagiannya melalui pasaran

eksport. Margin keuntungan yang diperolehi

rendah kerana keadaan pasaran lembab dan

lebihan inventori yang disimpan oleh berbagai

pengedar. Dengan peruntukan yang mencukupi

disediakan sebelumnya berhubung dengan stok

yang lambat laris, unit perniagaan ini mampu

melaporkan keuntungan kecil pada tahun ini.

CAPITAL & RESERVES

MODAL & RIZAB

999897

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704

734

747



a review of the flexible manufacturing systems

to enable production lines to take in a wider

model range.

Financial performance

During the course of the year, the Group took

progressive steps to revise upward prices of

certain vehicle models to cushion the impact

of higher costs of new components imported

under the prevailing yen exchange rate.

The higher production volume lowered unit

production cost as compared to that in the

previous year. Coupled with the cost cutting

measures implemented in 1998, the Group

registered a pre-tax profit (excluding

exceptional items) of RM75 million as against

a loss of RM13.7 million of the previous year.

The balance sheet position of the Group after

the Demerger Scheme continued to be very

sound with a net cash position of about

RM150 million (after deducting proposed

dividends) as at year end. The Group had the

capacity to fund higher business volume from

internal sources of funds before resorting to

external financing. The RM147.5 million fixed

rate term loans were repaid during the year.

D I V I D E N D S

Pursuant to the Demerger Scheme, the

following dividends had been announced

and paid:

a. Special Dividend in Cash (Dividend No. I)

amounting to RM94,617,600 paid on

26 November 1999.

Pemasangan kenderaan

Sebagai persediaan awal kepada pertambahan

permintaan selanjutnya, berbagai program

telah dilaksanakan untuk mempertingkatkan

lagi produktiviti dan kecekapan loji pemasangan.

Kursus pengurusan bengkel dianjur bagi

memupuk amalan bengkel yang baik dan

mencapai matlamat keberkesanan dari segi

Kualiti, Kos dan Penyerahan. Pengurusan turut

menjalankan semakan semula terhadap

sistem pengilangan yang fleksibel untuk

membolehkan barisan pengeluaran memasang

lebih banyak model pada masa yang sama.

Prestasi Kewangan

Sepanjang tahun ini, Kumpulan telah

mengambil langkah progresif bagi menaikkan

harga beberapa model kenderaan bagi

membendung kesan kos komponen baru

yang diimport di bawah kadar pertukaran

semasa matawang yen. Volum pengeluaran

yang lebih tinggi telah mengurangkan kos

pengeluaran seunit berbanding pada tahun

sebelumnya. Dengan langkah penjimatan

kos yang dilaksanakan pada tahun 1998,

Kumpulan berjaya mencatatkan keuntungan

sebelum cukai (tidak termasuk perkara

terkecuali) sebanyak RM75 juta berbanding

kerugian sebanyak RM13.7 juta pada tahun

sebelumnya.

Kedudukan Kunci Kira-kira Kumpulan kekal

mantap selepas langkah pengasingan.

Kedudukan tunai bersihnya pada akhir tahun

ini adalah sebanyak RM150 juta (selepas

menolak dividen dicadangkan). Kumpulan

mempunyai kapasiti untuk membiayai volum

perniagaan yang lebih tinggi daripada

sumber dana dalamannya sebelum sumber

pembiayaan dari luar diperlukan. Jumlah

sebanyak RM147.5 juta pinjaman berjangka

telah dijelaskan pada tahun ini.

PROFIT/(LOSS) AFTER TAXexcluding exceptional items

KEUNTUNGAN/(KERUGIAN)SELEPAS CUKAItidak termasuk perkara terkecuali

999897

RM

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RM

ju

ta

172

(21) 75

Nissan Diesel Luxury

Air Suspension Coach

Koc Suspensi Udara

Mewah Nissan Diesel


b. Special Dividend in Specie (Dividend No. II)


1 December 1999.

c. Special Dividend in Specie (Dividend No. III)


1 December 1999.

d. Special Dividend in Cash (Dividend No. IV)


25 February 2000.

There remains an amount of RM91,953,780

or approximately RM136.84 for every 1,000

ordinary shares of RM0.50 each held in the

Company which will be paid on 19 May 2000.

With this payment, all the distributions

relating to the Demerger Scheme would have

been completed.

C U R R E N T Y E A R P R O S P E C T S

Apart from the general economic climate in

the country, the strength of the yen will have

a direct impact on the results of the Group

given its current inventory level. The effects

of these factors were partly reflected in the

fourth quarter 1999 results.

The current momentum of growth in the

motor vehicle market is expected to continue

into 2000. Several motor distributors have

already announced the introduction of new

models during the year to capitalise on the

market strength. The Group will similarly have

D I V I D E N

Berhubung dengan langkah pengasingan yang

dijalankan, dividen berikut telah diumumkan

dan dibayar:

a. Dividen Khas dalam Tunai (Dividen No. I)

berjumlah RM94,617,600 dibayar pada

26 November 1999.

b. Dividen Khas dalam Specie (Dividen No. II)


1 Disember 1999.

c. Dividen Khas dalam Specie (Dividen No. III)


1 Disember 1999.

d. Dividen Khas dalam Tunai (Dividen No. IV)


25 Februari 2000.

Masih terdapat baki berjumlah RM91,953,780

atau lebih kurang RM136.84 bagi setiap 1,000

saham biasa berharga RM0.50 sesaham dimiliki

dalam syarikat yang akan dibayar pada

19 Mei 2000. Dengan bayaran dividen ini,

semua pengagihan yang berkaitan dengan

langkah pengasingan yang dijalankan telah

disempurnakan.

P R O S P E K T A H U N S E M A S A

Selain daripada iklim ekonomi umum

di negara ini, keteguhan nilai Yen akan

memberi kesan langsung ke atas keputusan

Kumpulan berdasarkan tahap inventori

semasanya. Kesan faktor-faktor ini boleh

dilihat sebahagiannya melalui keputusan

suku keempat 1999.

Momentum pertumbuhan semasa dalam

pasaran kenderaan bermotor akan berterusan

pada tahun 2000. Beberapa pengedar

kenderaan bermotor telah mengumumkan

pengenalan model baru pada tahun ini bagi

merebut peluang daripada keteguhan pasaran.

Kumpulan juga akan melipatgandakan

NET TANGIBLE ASSETSPER SHARE (RM0.50 par value)

ASET KETARA BERSIH SESAHAM(RM0.50 nilai tara)

999897

Se

n

105

109

111

Nissan Terrano 4WD - built to

conquer any terrain

Nissan Terrano Pacuan 4 Roda - direka

untuk menguasai sebarang muka

bumi yang mencabar



to step up its effort in the relevant areas to

improve its market position.

Demand for the heavy commercial vehicles

is expected to improve and will very

much depend on the growth rate of the

transportation and construction sectors.

Barring unforeseen circumstances, the

operating performance of the Group is

expected to remain satisfactory.

C O R P O R A T E D E V E L O P M E N T

As at 31 December 1999, the Company

continued to hold the balance shares in

APM and Warisan not acquired by Bumiputera

investors approved by MITI (“Bumiputera

Investors”). These investments were carried

at cost and disclosed as long term investments

in the balance sheet.

The balance shares in APM and Warisan,

which were to be disposed of to the Bumiputera

Investors within one year from the listing of

APM and Warisan, had been fully disposed of

at the date of this report. With the completion

of this disposal, an exceptional gain of about

RM32 million would be recorded for the

current year. The proceeds from the disposal

of the balance shares will be distributed to the

shareholders of the Company on 19 May 2000

as mentioned earlier. The payment of this

dividend marks the completion of the

Demerger Scheme.

EARNINGS PER SHAREexcluding exceptional items(RM0.50 par value)

PENDAPATAN SESAHAMtidak termasuk perkara terkecuali(RM0.50 nilai tara)

Se

n

25 (3)

11

999897

usahanya dalam bidang-bidang berkaitan untuk

mempertingkatkan kedudukan pasarannya.

Permintaan bagi kenderaan perdagangan

berat dijangka akan bertambah baik dan

akan bergantung sebahagiannya kepada

kadar pertumbuhan sektor pengangkutan

dan pembinaan.

Jika tidak berlaku sebarang keadaan di luar

jangkaan, prestasi operasi Kumpulan diramal

akan kekal memuaskan.

P E R K E M B A N G A N K O R P O R A T

Setakat 31 Disember 1999, Syarikat masih

memegang baki saham dalam APM dan

Warisan yang belum diambil oleh para

pelabur Bumiputera yang diluluskan oleh

MITI. Pelaburan ini dicatatkan pada kos dan

dinyatakan sebagai pelaburan jangka panjang

dalam kunci kira-kira.

Baki saham dalam APM dan Warisan yang akan

dijual kepada para Pelabur Bumiputera dalam

tempoh setahun dari penyenaraian APM dan

Warisan telah dijual sepenuhnya pada tarikh

laporan ini. Kumpulan akan mencatatkan

keuntungan terkecuali sebanyak kira-kira

RM32 juta. Di bawah langkah pengasingan

yang dijalankan, kutipan daripada pelupusan

baki saham ini akan diagihkan kepada para

pemegang saham Syarikat pada 19 Mei 2000

seperti yang disebutkan sebelumnya.

Pembayaran dividen ini menandakan

penyelesaian Skim Pengasingan.

TURNOVER

PEROLEHAN

999897

RM

mil

lio

n /

RM

ju

ta

1,86

1

483

946


Our commitment

to total customer

satisfaction

Iltizam kami

terhadap kepuasan

penuh pelanggan

A C K N O W L E D G E M E N T

On behalf of the Board, I wish to extend our appreciation

to the management and staff for their dedication and

contribution as always. I would also like to thank all

our valued customers, suppliers, bankers and other

business associates as well as our shareholders for

their continuing support.

DATO’ TAN KIM HOR DPMS, KMN, JP

Chairman / Pengerusi

Kuala Lumpur

3 April 2000

P E N G H A R G A A N

Saya bagi pihak Lembaga Pengarah ingin menyampaikan

ucapan penghargaan kepada pengurusan dan kakitangan

di atas ketekunan dan sumbangan berterusan yang mereka

berikan. Saya ingin mengucapkan terima kasih kepada

semua pelanggan, pembekal, bank dan rakan-rakan dalam

perniagaan kami yang amat dihargai serta para pemegang

saham yang telah memberi sokongan berterusan.

Nissan Sentra - an entirely

new class of sedan

Nissan Sentra - peneraju

dalam kelas sedan



Listing O F ␣ N E Ware spin-off

companies of Tan Chong Motor Holdings Berhad, the result of the rationalisation and demerger of its Autoparts and Non-Motor

Divisions (“Demerger Scheme”).

Admitted to the Main Board of Kuala Lumpur Stock Exchange by Introduction on 15 December 1999 – the first twin listing for KLSE, and

also, the last for the millennium – both companies made impressive debuts, recording among the highest premiums for the year.

I N T R O D U C T I O N S T A T I S T I C S

APM Automotive Warisan TC

Holdings Berhad Holdings Berhad

Authorised Capital RM300,000,000 RM100,000,000

Number of ordinary shares of RM1.00 each in issue upon listing on KLSE 201,600,000 67,200,000

Shareholder’s entitlement for every 1,000 shares held in Tan Chong Motor

Holdings Berhad in addition to the RM352 cash pursuant to the

Demerger Scheme 150 shares 50 shares

Proforma Net Tangible Asset per share RM1.14 RM1.16

Opening Price on 15 December 1999 RM4.50 RM4.50

Closing Price on 15 December 1999 RM2.61 RM3.18

Earnings per share for financial year ended 31 December 1999 17.1 sen 29.0 sen

A P M A U T O M O T I V E H O L D I N G S B E R H A D A N D W A R I S A N T C H O L D I N G S B E R H A D



W A R I S A N T C H O L D I N G S B E R H A DD a i l y S h a r e P r i c e s & V o l u m e T r a d e d o n K L S E

Share Price(RM)

Volume Traded(Million)

CompositeIndex

12/1

5/99

12/2

7/99

01/1

1/00

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02/0

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6/00

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0

0.6

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1.8

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0

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1.2

1.8

2.4

3.0

3.6

0

200

400

600

800

1000

1200

Volume Traded(number of shares traded for the day)

Share Price(closing price for the day)

KLSE Composite Index(closing index for the day)

A P M A U T O M O T I V E H O L D I N G S B E R H A DD a i l y S h a r e P r i c e s & V o l u m e T r a d e d o n K L S E

Share Price(RM)


CompositeIndex

0

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6

8

10

12

12/1

5/99

12/2

7/99

01/1

1/00

01/2

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9/00

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1/00

03/0

6/00

03/3

1/00

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1/00

0

0.6

1.2

1.8

2.4

3.0

3.6

0

200

400

600

800

1000

1200




C O M PA N I E S

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Directors’ Report 18

Statutory Declaration 23

Report of the Auditors to the Members 24

Consolidated Balance Sheet 25

Consolidated Profit & Loss Account 26

Consolidated Balance Sheet 27

(In US$ Equivalent)

Consolidated Profit & Loss Account 28

(In US$ Equivalent)

Balance Sheet 29

Profit & Loss Account 30

Consolidated Cash Flow Statement 31

Notes to the Accounts 33

Financial Statements

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The directors have pleasure in submitting their report and the audited accounts of the Group and of the Company for the year ended

31 December 1999.

P R I N C I P A L A C T I V I T I E S

The principal activities of the Company during the year consist of investment holding and the provision of management services to

companies in the Group whilst the principal activities of the subsidiary companies are as stated in Note 10 to the accounts.

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

R E S U L T SGroup Company

RM’000 RM’000

Profit for the year after taxation and minority interests 310,973 448,593

Unappropriated profits brought forward 396,464 62,523

Profits available for appropriation 707,437 511,116

Appropriation:

Dividends (297,509) (297,509)

Unappropriated profits carried forward 409,928 213,607

D I V I D E N D S

The amounts paid by way of dividends by the Company since the end of the previous financial year pursuant to the TCMH Scheme (refer

to Notes (b), (c) and (d) under ‘Significant Events During The Year’) were:

i) Special Dividend in Cash (Dividend No. I) amounting to RM94,617,600 was paid on 26 November 1999;

ii) Special Dividend in Specie (Dividend No. II) amounting to RM114,515,906 was paid on 1 December 1999;

iii) Special Dividend in Specie (Dividend No. III) amounting to RM38,403,084 was paid on 1 December 1999; and

iv) Special Dividend in Cash (Dividend No. IV) amounting to RM49,972,620 was paid on 25 February 2000.

Apart from the distributions made pursuant to the TCMH Scheme, the directors do not recommend the payment of any dividend for the

year under review.

R E S E R V E S A N D P R O V I S I O N S

There were no material transfers to or from reserves or provisions during the year other than those disclosed in the accounts.

Directors’ Report

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Directors’ Report (Cont’d)

D I R E C T O R S O F T H E C O M P A N Y

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

Dato’ Tan Kim Hor

Ahmad bin Abdullah

Dato’ Tan Heng Chew

Tan Eng Soon

Azman bin Badrillah

Geh Cheng Hooi

Yoshi Iwashita

Dato’ Ng Mann Cheong

The shareholdings in the Company of those who were directors at year end are as follows:

Balance at Balance at

Name 1.1.1999 Acquired Sold 31.12.1999

Ordinary shares of RM0.50 each

Dato’ Tan Kim Hor

– direct interest 3,074,834 – – 3,074,834

– deemed interest 304,266,662 – – 304,266,662

Dato’ Tan Heng Chew

– direct interest 25,662 – – 25,662

– deemed interest 304,266,662 – – 304,266,662

Tan Eng Soon

– direct interest 1,400,000 – – 1,400,000

– deemed interest 304,266,662 – – 304,266,662

Azman bin Badrillah

– direct interest 8,000 – – 8,000

Dato’ Tan Kim Hor, Dato’ Tan Heng Chew and Tan Eng Soon are deemed interested in the shares of the subsidiaries of the Company by

virtue of their shareholdings in the Company. Details of their deemed shareholdings in non-wholly owned subsidiaries are shown in Note

10.1 of the accounts.

In accordance with Article 101 of the Company’s Articles of Association, Dato’ Tan Heng Chew and Azman bin Badrillah retire by rotation

from the Board at the Annual General Meeting and, being eligible, offer themselves for re-election.

Dato’ Tan Kim Hor who is over the age of seventy years, retires under Section 129 of the Companies Act, 1965 and seeks re-appointment

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

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D I R E C T O R S ’ B E N E F I T S

Since the end of the previous financial year, no director of the Company has received or become entitled to receive any benefit (other

than a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in the accounts) by

reason of a contract made by the Company or a related company with the director or with a firm of which the director is a member or

with a company in which the director has a substantial financial interest, other than certain directors who have interest in companies which

traded with certain related companies in the ordinary course of business, rental payable by a related company to companies in which

certain directors have significant financial interest, advances to and from certain companies in which certain directors have significant

financial interest and legal fees paid to a director by the Company for professional services rendered.

There were no arrangements during and at the end of the year which had the object of enabling directors of the Company to acquire

benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate other than the rights given

to Ahmad bin Abdullah and Azman bin Badrillah to purchase ordinary shares of RM1.00 each in APM Automotive Holdings Berhad

(“APM”) and Warisan TC Holdings Berhad (“WTCH”) held by the Company at RM1.74 and RM1.82 per ordinary share respectively

as follows:

Number of shares of RM1.00 each

Allocated and Balance at

Name accepted Purchased 31.12.1999

APM Automotive Holdings Berhad (“APM”)

Ahmad bin Abdullah 13,235,000 – 13,235,000

Azman bin Badrillah 13,235,000 (2,150,000) 11,085,000

26,470,000 (2,150,000) 24,320,000

Warisan TC Holdings Berhad (“WTCH”)

Ahmad bin Abdullah 4,000,000 – 4,000,000

As a condition for the listing of APM and WTCH on the Kuala Lumpur Stock Exchange, the Company was required to dispose of 30% of

the shares in APM and WTCH amounting to 60,480,000 and 20,160,000 ordinary shares of RM1.00 each respectively to Bumiputera investors

approved by the Ministry of International Trade and Industry (“MITI”). The above directors were among the Bumiputera investors

approved by the MITI to purchase these shares.

S I G N I F I C A N T E V E N T S D U R I N G T H E Y E A R

In December 1999, the Company completed the reorganisation and demerger of its Autoparts and Non-Motor Divisions (“TCMH Scheme”)

the details of which were set out in the Circular To Shareholders dated 29 September 1999. The TCMH Scheme was approved by the

shareholders of the Company in an Extraordinary General Meeting held on 14 October 1999.

The TCMH Scheme comprised the following steps:

(a) An internal reorganisation of the Autoparts and Non-Motor Divisions involving the re-grouping of companies comprising the

Autoparts and Non-Motor Divisions under intermediate holding vehicles, APM and WTCH respectively, and the granting of rights

to allotment (“RTAs”) of 201,599,999 and 67,199,999 ordinary shares of RM1.00 each in APM and WTCH respectively to the Company.

(b) The Company paid special net dividends in specie (Dividends No. II and III) totalling RM152,918,990 or approximately 45.51% per

TCMH share to the Company’s shareholders, which was satisfied by the renunciation to the Company’s shareholders of the RTAs

of 50% of the enlarged share capital in APM and WTCH respectively.

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(c) The Company disposed of 20% of the equity interest in APM and WTCH respectively to Parasand Ltd. (“the Controlling

Shareholders”) represented by the RTAs of 40,320,000 ordinary shares of RM1.00 each in APM and 13,440,000 ordinary shares of

RM1.00 each in WTCH at RM1.74 and RM1.82 per ordinary share respectively for cash. The Company received a total cash

consideration of RM94,617,600 from the Controlling Shareholders for the disposals.

(d) The Company is to dispose of 30% of the equity interest in APM and WTCH respectively comprising the RTAs of 60,480,000 and

20,160,000 ordinary shares of RM1.00 each in APM and WTCH respectively to Bumiputera investors approved by MITI at RM1.74

and RM1.82 per ordinary share respectively for cash, in order to comply with the National Development Policy. The Company will

receive a total of RM141,926,400 in cash upon full disposal of the equity interest to the Bumiputera investors. As at 31 December

1999, the Company disposed of 9.7% and 13.04% of the equity interest in APM and WTCH respectively to the Bumiputera investors

for a total cash consideration of RM34,023,960 and RM15,948,660 respectively.

(e) The entire issued and paid-up share capital of APM and WTCH comprising 201,600,000 and 67,200,000 ordinary shares of RM1.00

each respectively were listed on the Main Board of the Kuala Lumpur Stock Exchange on 15 December 1999.

(f) The total cash proceeds of RM236,544,000 from the disposals will be distributed entirely to the shareholders of the Company on

a pro-rata basis by way of special dividends. As at 31 December 1999, the Company had distributed RM94,617,600 to the

shareholders of the Company by way of a special dividend in cash (Dividend No. I) and another payment of special dividend in cash

(Dividend No. IV) of RM49,972,620 was paid on 25 February 2000.

S I G N I F I C A N T P O S T B A L A N C E S H E E T E V E N T

On 24 March 2000, the Company completed the disposal of the remaining equity interest in APM and WTCH to the Bumiputera investors

approved by the MITI.

The equity interest of 20.3% and 16.96% in APM and WTCH respectively comprising 40,926,000 and 11,397,000 ordinary shares of RM1.00

each in APM and WTCH respectively were disposed of at RM1.74 and RM1.82 per ordinary share respectively for cash. The Company received

a total cash consideration of RM91,953,780 from the disposals and recorded an exceptional surplus of RM32,432,770 from the disposals.

The cash proceeds will be distributed entirely to the shareholders of the Company on a pro-rata basis by way of special dividend in cash

(Dividend No. V), which will be paid on 19 May 2000.

I S S U E O F S H A R E S A N D D E B E N T U R E S

There were no changes in the issued and paid-up capital of the Company during the year.

O P T I O N S G R A N T E D O V E R U N I S S U E D S H A R E S A N D D E B E N T U R E S

No options were granted to any person to take-up unissued shares/stocks and debentures of the Company during the year.

O T H E R S T A T U T O R Y I N F O R M A T I O N

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

i) all known bad debts have been written off and adequate provision made for doubtful debts, and

ii) all current assets have been stated at the lower of cost and net realisable value.

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

i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the Group and in

the Company inadequate to any substantial extent, or

ii) that would render the value attributed to the current assets in the Group and in the Company accounts misleading, or

iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the

Company misleading or inappropriate, or

iv) not otherwise dealt with in this report or the accounts, that would render any amount stated in the accounts of the Group and

of the Company misleading.

At the date of this report there does not exist:

i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the

liabilities of any other person, or

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

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

after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Group or of

the Company to meet their obligations as and when they fall due.

In the opinion of the directors:

i) except for the exceptional items as disclosed in Note 22 to the accounts, the results of the operations of the Group and of the

Company for the financial year ended 31 December 1999 have not been substantially affected by any item, transaction or event

of a material and unusual nature nor has any such item, transaction or event occurred in the interval between the end of that

financial year and the date of this report except for the exceptional surplus from the disposals of the remaining equity interest

in APM and WTCH to the Bumiputera investors approved by MITI as disclosed in Note 31, and

ii) the accounts of the Group and of the Company set out on pages 25 to 57, except for pages 27 and 28 which are expressed in US$,

are drawn up in accordance with applicable approved accounting standards in Malaysia so as to give a true and fair view of the

state of affairs of the Group and of the Company as at 31 December 1999 and of the results of their operations and cash flows of

the Group for the year ended on that date.

A U D I T O R S

The retiring auditors, Messrs KPMG (formerly known as KPMG Peat Marwick), have indicated their willingness to accept re-appointment.

Signed in accordance with a resolution of the directors:

Dato’ Tan Kim Hor Ahmad bin Abdullah

Chairman Vice Chairman

Kuala Lumpur

3 April 2000


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Statutory Declaration

I, TAN ENG GUAN, being the officer primarily responsible for the financial management of TAN CHONG MOTOR HOLDINGS BERHAD, do

solemnly and sincerely declare that the accounts set out on pages 25 to 57, except for pages 27 and 28 which are expressed in US$, are,

to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and

by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed

TAN ENG GUAN at Kuala Lumpur in the Federal Territory

this 3rd day of April 2000.

Before me

MOHD RADZI BIN YASIN

No. W327

Commissioner for Oaths

(Pesuruhjaya Sumpah)

Kuala Lumpur

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Report of the Auditors to the Members

We have audited the accounts set out on pages 25 to 57 except for pages 27 and 28 which are expressed in US$. The preparation of the

accounts is the responsibility of the Company’s directors. Our responsibility is to express an opinion on the accounts based on our audit.

We conducted our audit in accordance with approved Standards on Auditing in Malaysia. These standards require that we plan and

perform the audit to obtain all the information and explanations which we consider necessary to provide us with evidence to give

reasonable assurance that the accounts are free of material misstatement. An audit includes examining, on a test basis, evidence relevant

to the amounts and disclosures in the accounts. An audit also includes an assessment of the accounting principles used and significant

estimates made by the directors as well as evaluating the overall adequacy of the presentation of information in the accounts. We believe

our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the accounts are properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable approved

accounting standards in Malaysia so as to give a true and fair view of:

i) the state of affairs of the Group and of the Company at 31 December 1999 and of the results of their operations and cash

flows of the Group for the year ended on that date; and

ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the accounts of the Group and of the

Company; and

(b) the accounting and other records and the registers required by the Companies Act, 1965 to be kept by the Company and the

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

The subsidiary company in respect of which we have not acted as auditors is identified in Note 10 to the accounts and we have considered

the accounts and the auditors’ report thereon except as mentioned in Note 10 to the accounts.

We are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s accounts are in form and content

appropriate and proper for the purposes of the preparation of the consolidated accounts and we have received satisfactory information

and explanations required by us for those purposes.

None of the audit reports on the accounts of the subsidiaries were subject to any qualification nor included any comment made under

sub-section (3) of Section 174 of the Act.

KPMG

Firm Number: AF 0758

Public Accountants

NG KIM TUCK

Partner

Approval Number: 1150/03/02(J/PH)

Kuala Lumpur

3 April 2000

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Consolidated Balance SheetAT 31 DECEMBER 1999

Note 1999 1998

RM’000 RM’000

SHARE CAPITAL 3 336,000 336,000

RESERVES 4 411,299 397,835

747,299 733,835

MINORITY INTERESTS 6,473 6,325

DEFERRED TAXATION 686 934

RETIREMENT BENEFITS 5,869 6,911

TERM LOANS (UNSECURED) 5 – 147,500

760,327 895,505

CURRENT LIABILITIES

Trade creditors 6 60,537 19,460

Other creditors and accruals 7 52,057 59,217

Short term borrowings (unsecured) 8 1,656 3,607

Taxation 9,537 41,324

Proposed dividend 49,973 –

173,760 123,608

934,087 1,019,113

FIXED ASSETS 9 211,868 216,422

ASSOCIATED COMPANIES 11 3,155 2,917

LONG TERM INVESTMENTS 12 59,521 152,919

OTHER INVESTMENTS 13 1,808 1,808

HIRE PURCHASE DEBTORS 14 34,522 28,678

CURRENT ASSETS

Stocks 15 290,092 367,515

Short term investment 16 100 –

Trade debtors 17 72,027 55,282

Hire purchase debtors 14 21,585 16,716

Other debtors, deposits and prepayments 18 34,840 83,460

Short term deposits 19 181,625 81,884

Cash and bank balances 22,944 11,512

623,213 616,369

934,087 1,019,113

The notes set out on pages 33 to 57 form an integral part of, and should be read in conjunction with, these accounts.

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Consolidated Profit and Loss AccountFOR THE YEAR ENDED 31 DECEMBER 1999

Note 1999 1998

RM’000 RM’000

Turnover 20 946,331 483,228

Cost of sales 810,256 423,147

Operating profit/(loss) 21 74,869 (13,691)

Exceptional items 22 297,055 69,444

371,924 55,753

Share of profit of associated companies 283 73

Profit before taxation 372,207 55,826

Taxation – Operating profit 23 (70) (7,562)

– Exceptional items 23 (60,861) (19,444)

(60,931) (27,006)

Profit after taxation 311,276 28,820

Minority interests (303) 1,170

Profit attributable to members of the Company 310,973 29,990



Appropriation:

Dividends 24 (297,509) –

Unappropriated profits carried forward 4.3 409,928 396,464

Unappropriated profits retained in:

Holding company 223,248 73,345

Subsidiary companies 184,150 320,872

Associated companies 2,530 2,247

409,928 396,464

Earnings per share including exceptional items (sen) 25 46.3 4.46

Earnings/(Loss) per share excluding exceptional items (sen) 25 11.1 (3.0)


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Consolidated Balance SheetAT 31 DECEMBER 1999

( IN US$ EQU IVA LEN T)

1999 1998

US$’000 US$’000

SHARE CAPITAL 88,654 88,654

RESERVES 108,522 104,970

197,176 193,624


DEFERRED TAXATION 181 246


TERM LOANS (UNSECURED) – 38,918

200,614 236,281

CURRENT LIABILITIES

Trade creditors 15,973 5,134

Other creditors and accruals 13,735 15,625

Short term borrowings (unsecured) 437 952

Taxation 2,516 10,903


45,847 32,614

246,461 268,895

FIXED ASSETS 55,902 57,103

ASSOCIATED COMPANIES 832 770

LONG TERM INVESTMENTS 15,705 40,348

OTHER INVESTMENTS 477 477

HIRE PURCHASE DEBTORS 9,109 7,567

CURRENT ASSETS

Stocks 76,542 96,970

Short term investment 26 –

Trade debtors 19,004 14,586

Hire purchase debtors 5,695 4,411

Other debtors, deposits and prepayments 9,193 22,021

Short term deposits 47,922 21,605


164,436 162,630

246,461 268,895

The information presented on this page does not form part of the audited accounts of the Group. Figures for both 1999 and 1998 are converted into USdollars equivalent using the same exchange rate of RM3.79 = US$1.00, which approximates that prevailing on 31.12.1999.

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Consolidated Profit and Loss AccountFOR THE YEAR ENDED 31 DECEMBER 1999

( IN US$ EQUIVALENT)

1999 1998

US$’000 US$’000

Turnover 249,692 127,501

Cost of Sales 213,788 111,648

Operating profit/(loss) 19,754 (3,612)

Exceptional item 78,379 18,323

98,133 14,711



Taxation – Operating profit (19) (1,996)

– Exceptional items (16,058) (5,130)

(16,077) (7,126)

Profit after taxation 82,131 7,604

Minority interests (80) 309

Profit attributable to members of the Company 82,051 7,913



Appropriation:

Dividends (78,498) –





Associated companies 668 593

108,161 104,608

Earnings per share including exceptional items (US cents) 12.2 1.2

Earnings/(Loss) per share excluding exceptional items (US cents) 2.9 (0.8)

The information presented on this page does not form part of the audited accounts of the Group. Figures for both 1999 and 1998 are converted into US

dollars equivalent using the same exchange rate of RM3.79 = US$1.00, which approximates that prevailing on 31.12.1999.

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Balance SheetAT 31 DECEMBER 1999

Note 1999 1998

RM’000 RM’000

SHARE CAPITAL 3 336,000 336,000

UNAPPROPRIATED PROFITS 4.3 213,607 62,523

549,607 398,523

RETIREMENT BENEFITS 868 1,964

TERM LOANS (UNSECURED) 5 – 147,500

CURRENT LIABILITIES


Amount due to subsidiary companies 10 2,846 2,482

Taxation 5,732 5,732


63,101 12,207

613,576 560,194

FIXED ASSETS 9 1,191 844

SUBSIDIARY COMPANIES 10 307,090 257,256

LONG TERM INVESTMENTS 12 59,521 –

CURRENT ASSETS

Other debtors, deposits and prepayments 18 8,633 59,454

Amount due from subsidiary companies 10 216,790 141,835

Dividend receivable from subsidiary companies 10 15,000 100,000

Cash and bank balances 5,351 805

245,774 302,094

613,576 560,194


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Profit and Loss AccountFOR THE YEAR ENDED 31 DECEMBER 1999

Note 1999 1998

RM’000 RM’000

Turnover 20 406,312 863,476

Operating (loss)/profit 21 (5,077) 18,009

Exceptional items 22 559,448 1,222,536

Profit before taxation 554,371 1,240,545

Taxation – Operating profit 23 (195) (6,144)

– Exceptional items 23 (105,583) (222,351)

(105,778) (228,495)

Profit after taxation 448,593 1,012,050


Profits available for appropriation 511,116 1,116,636

Appropriation:

Capitalisation for bonus issue 4.3 – (1,054,113)

Dividends 24 (297,509) –

(297,509) (1,054,113)

Unappropriated profits carried forward 4.3 213,607 62,523


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Consolidated Cash Flow StatementFOR THE YEAR ENDED 31 DECEMBER 1999

1999 1998

RM’000 RM’000

CASH FLOWS FROM OPERATING ACTIVITIES


Adjustments for:

Bad debts recovered (393) (91)

Bad debts written off 96 5

Surplus arising from the reorganisation and

demerger of Autoparts and Non-Motor Divisions (51,194) –

Deferred expenditure amortised/written off – 7

Depreciation and amortisation of fixed assets 11,449 12,349

Dividends received from companies in the APM Group and WTCH Group (245,861) –

Dividends received from other investments (353) –

Fixed assets written off 2 523

Gain on disposal of fixed assets (299) (352)

Interest expense 8,843 14,950

Interest income (7,232) (4,981)

Provision for doubtful debts 1,048 7,237

Provision for retirement benefits 1,191 1,605

Provision for slow moving stocks 3,326 17,298

Share of profit of associated companies (net of dividends received) (283) (73)

Stocks written off – 846

Write back of stocks written off (5,405) (5,265)

Write back of provision for doubtful debts (5,377) (547)

Write back of provision for slow moving stocks (6,790) (3)

Operating profit before working capital changes 74,975 99,334

Increase/(Decrease) in working capital:

Stocks 86,291 122,152

Trade debtors (12,119) 55,108

Other debtors, deposits and prepayments 50,083 (19,616)

Hire purchase debtors (10,713) 12,181

Amount due from associated companies 45 (897)

Trade creditors 41,077 (63,182)

Other creditors (7,160) (42,169)

Cash generated from operations 222,479 162,911

Interest paid (8,843) (14,950)

Interest received 7,232 4,981

Retirement benefits paid (2,233) (2,041)

Taxation paid (92,966) (88,972)

Net cash generated from operating activities 125,669 61,929

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Consolidated Cash Flow Statement (Cont’d)

FOR THE YEAR ENDED 31 DECEMBER 1999

1999 1998

RM’000 RM’000

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of additional shares in associated company – (150)

Acquisition of short term investment (100) –

Dividends received from companies in the APM Group and WTCH Group 245,861 –

Dividends received from other investments 353 –

Net funds from minority interests – (51)

Proceeds from disposal of fixed assets 680 590

Proceeds from disposal of long term investments 144,592 –

Purchase of fixed assets (8,744) (12,470)

Net cash generated from/(used in) investing activities 382,642 (12,081)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid to minority shareholders (151) (410)

Dividends paid to shareholders (247,536) (16,934)

Repayment of term loans (147,500) (10,000)

Net cash used in financing activities (395,187) (27,344)

EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CONSOLIDATION – 87

NET INCREASE IN CASH AND CASH EQUIVALENTS 113,124 22,591

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 89,789 67,198

CASH AND CASH EQUIVALENTS AT END OF YEAR 202,913 89,789

CASH AND CASH EQUIVALENTS COMPRISE:

Short term deposits 181,625 81,884


Short term borrowings (1,656) (3,607)

202,913 89,789


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Notes to the Accounts31 DECEMBER 1999

1 . P R I N C I P A L A C T I V I T I E S

The principal activities of the Company during the year consist of investment holding and the provision of management services

to companies in the Group whilst the principal activities of the subsidiary companies are as stated in Note 10 to the accounts.

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

2 . S I G N I F I C A N T A C C O U N T I N G P O L I C I E S

2.1 Basis of Preparation

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

and buildings and certain investment in subsidiary companies, and in compliance with approved accounting standards in

Malaysia.

2.2 Basis of Consolidation

The Group accounts consolidate the audited accounts made up to 31 December 1999 of the Company and its subsidiary

companies remaining within the Group as at year end.

2.3 Depreciation

Freehold land is not amortised. Leasehold land is amortised over the period of the lease which ranges from 999 years to

34 years. All other fixed assets are depreciated on a straight line basis to write off the cost or valuation of each asset over

its estimated useful life.

The following annual depreciation rates are used by the Group:

Buildings 2% – 14%

Plant, machinery and equipment 10% – 50%

Furniture, fixtures, fittings and office equipment 10% – 50%

Motor vehicles 10% – 20%

It is the Group’s policy to state fixed assets at cost. Revaluation of certain properties in 1984 was carried out primarily for

the purpose of issuing bonus shares then and was not intended to effect a change in the accounting policy to one of

revaluation of properties.

The directors are of the opinion that the current market values of the revalued properties are no less than their net book

values as at 31 December 1999. The Group is following the transitional provisions to International Accounting Standard (IAS)

No. 16 on “Property, Plant and Equipment” as approved by the Malaysian Accounting Standards Board (“MASB“).

The transitional provisions allow the Group to retain the carrying amounts of the revalued assets on the basis of their

previous revaluations subject to continuity in their depreciation policy and the requirement to write an asset down to

its recoverable amount. Accordingly, the above valuations have not been updated.

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Notes to the Accounts (Cont’d)

31 DECEMBER 1999

2 . S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C o n t ’ d )

2.4 Hire Purchase Revenue

Hire purchase revenue is recognised evenly over the period of repayment.

2.5 Deferred Taxation

Provision for deferred taxation is made under the liability method in respect of all material timing differences except where

no liability is expected to arise in the foreseeable future. Deferred tax benefits are only recognised where there is a

reasonable expectation of realisation in the near future.

2.6 Foreign Currencies

Assets and liabilities in foreign currencies are translated at exchange rates approximating those ruling at balance sheet date

or contracted rates where applicable. Transactions in foreign currencies during the year have been translated at rates

approximate to those prevailing on the transaction dates. Exchange differences arising from translations are included in

the operating results of the year.

On consolidation, the assets and liabilities of foreign incorporated subsidiary companies are translated into Ringgit Malaysia

at the exchange rates approximating those ruling at balance sheet date whilst the operating results are translated into

Ringgit Malaysia at the average rates of exchange for the year. The resulting difference arising from such translation is taken

to the Exchange Adjustment Account.

2.7 Stocks

Stocks are stated at the lower of cost and net realisable value.

Cost of assembled motor vehicles, work-in-progress and unassembled vehicle packs is determined at standard cost adjusted

for variances which approximates actual cost on a specific identification basis.

Cost of trading stocks is determined on the weighted average basis.

Work-in-progress, manufactured stocks and locally assembled vehicles include direct materials, labour and production

overheads.

2.8 Associated Company

An associated company is defined as a company, not being a subsidiary, in which the Group has a substantial interest (not

less than 20% of the equity) and in whose financial and operating policy decisions the Group exercises significant influence.

Investment in associated companies is stated at cost. Provision is made for any permanent diminution in value of the

investment.

The Group’s share of profits less losses of associated companies is included in the consolidated profit and loss account while

the Group’s share of post-acquisition retained profits and reserves is added to the carrying value of the investment in the

consolidated balance sheet.

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31 DECEMBER 1999

2 . S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C o n t ’ d )

2.9 Investments

Investments in subsidiary and associated companies are stated at cost or valuation determined by the Directors based on

the values of the underlying net tangible assets, after the revaluation of the properties of the subsidiary companies and was

carried out primarily for the purpose as explained in Note 2.3. A provision is made when the Directors are of the view that

there is a permanent diminution in their values.

Long term investments are stated at cost with a provision for permanent diminution when the Directors are of the view that

there is a permanent diminution in their values.

Short term unquoted investments are stated at the lower of cost and market value on an investment portfolio basis with

a specific write down for shares where permanent diminution has occurred.

2.10 Cash and Cash Equivalents in Cash Flow Statement

Cash and cash equivalents consist of cash on hand, balances with banks and short term, highly liquid investments with an

original maturity period of no more than three months that are readily convertible to known amounts of cash and which

are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash

equivalents are presented net of bank overdrafts.

3 . S H A R E C A P I T A L1999 1998

RM’000 RM’000

Authorised:


Balance at 1 January 500,000 400,000

Created during the year

– 2,308,226,000 new ordinary shares – 1,154,113

Capital reduction

– Cancellation of 2,108,226,000 new ordinary shares – (1,054,113)

Balance at 31 December 500,000 500,000

Issued and fully paid:



Created during the year

– Bonus issue of 2,108,226,000 new ordinary shares at 3.137 new ordinary

shares for one (1) existing ordinary share – 1,054,113

Capital reduction

– Cancellation of 2,108,226,000 new ordinary shares – (1,054,113)


The movements in share capital of the Company in the previous year were due to the rationalisation and demerger of its Foreign

Division.

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4 . R E S E R V E SGroup

1999 1998

RM’000 RM’000

Capital reserve (Note 4.1) 123 123

Exchange adjustment account (Note 4.2) 1,366 1,366

Reserve on consolidation (118) (118)

Unappropriated profits (Note 4.3) 409,928 396,464

411,299 397,835

4.1 Capital Reserve

Surplus on revaluation of properties

– non-distributable 23 23

Capitalisation of unappropriated profits

– distributable 100 100

123 123

4.2 Exchange Adjustment Account

Non-distributable:

Arising from translation of foreign subsidiary companies:


Net movement from exchange adjustment – 87


4.3 Unappropriated Profits

Group Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Distributable:

Balance at 1 January 396,464 366,474 62,523 104,586

Profit during the year 310,973 29,990 448,593 1,012,050

Capitalisation for bonus issue during the year – – – (1,054,113)

Dividends (297,509) – (297,509) –

Balance at 31 December 409,928 396,464 213,607 62,523

The Company has sufficient tax credits and tax exempt income to frank the payment of dividends out of all its unappropriated profits

at 31 December 1999.

Pursuant to the requirements of Section 365(1A) of the Companies Act, 1965, future distribution of profits as dividends will be

restricted to the greater of the profit after tax for a particular financial year and the average dividends declared in respect of the

two financial years immediately preceding that financial year.

Section 365(1A) was repealed pursuant to the Budget Proposals for Year 2000 on 29 October 1999. However, the restriction on

payment of dividends will still be applicable pending the gazette of the Bill by Parliament.


31 DECEMBER 1999

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31 DECEMBER 1999

5 . T E R M L O A N S ( U N S E C U R E D )Group Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Repayable after one year – 147,500 – 147,500

The term loans of the Company borne interest at 8.55% (1998 – 8.55%) per annum and were fully repaid during the year.

6 . T R A D E C R E D I T O R S

Group

Included in trade creditors are amounts totalling RM10.567 million (1998 – RM4.178 million) and RM1.842 million (1998 – RM0.915

million) owing to certain companies of the APM and WTCH Groups respectively.

APM and WTCH Groups refer to companies in the APM Automotive Holdings Berhad (“APM”) Group and Warisan TC Holdings

Berhad (“WTCH”) Group respectively. The APM and WTCH Groups were previously subsidiary companies of the Tan Chong Motor

Holdings Berhad Group.

7 . O T H E R C R E D I T O R S A N D A C C R U A L S

Group

Included in other creditors and accruals are amounts totalling RM0.28 million (1998 – RM51.667 million) and RM0.344 million (1998

– RM16.367 million) owing to certain subsidiary companies of the APM and WTCH Groups respectively.

The amounts owing are non-trade in nature, unsecured and are subject to interest at negotiated rates.

8 . S H O R T T E R M B O R R O W I N G S ( U N S E C U R E D )Group

1999 1998

RM’000 RM’000

Bills payable 452 1,646

Bank overdrafts 1,204 1,961

1,656 3,607

Interest levied on short term borrowings of subsidiary companies is at 3.65% to 9.00% (1998 – 8.05% to 15.70%) per annum.

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9 . F I X E D A S S E T STaken

to Assets

At other written At

Group 1.1.1999 Additions Disposals debtors Transfers off 31.12.1999

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Cost/Valuation

Freehold land 63,971 1,029 – – – – 65,000

Long term leasehold land 75,866 875 – – – – 76,741

Short term leasehold land 6,798 – – – – – 6,798

Buildings 89,223 696 (42) – – – 89,877

Plant, machinery and

equipment 61,312 1,249 (35) – – – 62,526

Furniture, fixtures, fittings

and office equipment 30,301 1,439 (526) – 458 (68) 31,604

Motor vehicles 10,767 2,136 (1,588) – – – 11,315

Work-in-progress 3,003 1,320 – (1,465) (458) – 2,400

341,241 8,744 (2,191) (1,465) – (68) 346,261

___________ At 31.12.1999 ____________

1984

Cost Valuation Total

RM’000 RM’000 RM’000

Representing items:

Freehold land 23,683 41,317 65,000

Long term leasehold land 15,923 60,818 76,741

Short term leasehold land 6,160 638 6,798

Buildings 38,857 51,020 89,877

Plant, machinery and equipment 62,526 – 62,526

Furniture, fixtures, fittings and office equipment 31,604 – 31,604

Motor vehicles 11,315 – 11,315

Work-in-progress 2,400 – 2,400

192,468 153,793 346,261


31 DECEMBER 1999

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31 DECEMBER 1999

9 . F I X E D A S S E T S ( C o n t ’ d )Taken

to Assets

At other written At

Group 1.1.1999 Additions Disposals debtors Transfers off 31.12.1999

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Accumulated depreciation

Freehold land – – – – – – –

Long term leasehold land 11,456 868 – – – – 12,324

Short term leasehold land 1,486 186 – – – – 1,672

Buildings 33,359 2,719 (2) – – – 36,076

Plant, machinery and

equipment 46,750 4,182 (24) – – – 50,908


and office equipment 23,830 1,960 (359) – – (66) 25,365

Motor vehicles 7,938 1,534 (1,424) – – – 8,048

Work-in-progress – – – – – – –

124,819 11,449 (1,809) – – (66) 134,393

Depreciation

charge for the

Net book value year ended

1999 1998 31 December 1998

RM’000 RM’000 RM’000

Group

Freehold land 65,000 63,971 –

Long term leasehold land 64,417 64,410 865

Short term leasehold land 5,126 5,312 240

Buildings 53,801 55,864 2,695

Plant, machinery and equipment 11,618 14,562 4,916

Furniture, fixtures, fittings and office equipment 6,239 6,471 2,146

Motor vehicles 3,267 2,829 1,487

Work-in-progress 2,400 3,003 –

211,868 216,422 12,349

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9 . F I X E D A S S E T S ( C o n t ’ d )

Assets

At written At

1.1.1999 Additions Disposals off 31.12.1999

Company RM’000 RM’000 RM’000 RM’000 RM’000

Cost

Buildings 690 – – – 690


and office equipment 386 50 – (27) 409

Motor vehicles 695 617 (695) – 617

1,771 667 (695) (27) 1,716

Accumulated depreciation

Buildings 69 14 – – 83


and office equipment 297 47 – (25) 319

Motor vehicles 561 174 (612) – 123

927 235 (612) (25) 525

Depreciation

charge for the

Net book value year ended

1999 1998 31 December 1998

RM’000 RM’000 RM’000

Buildings 607 621 14

Furniture, fixtures, fittings and office equipment 90 89 45

Motor vehicles 494 134 103

1,191 844 162

The net book value of the revalued fixed assets had they been stated at cost less accumulated depreciation calculated on original

cost as required by International Accounting Standard (IAS) No. 16 on “Property, Plant and Equipment” is not shown as the records

are not available since the revaluation was done in 1984.


31 DECEMBER 1999

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31 DECEMBER 1999

1 0 . S U B S I D I A R Y C O M P A N I E SCompany

1999 1998

RM’000 RM’000

Unquoted shares

At cost 135,289 50,827

At Directors’ valuation in 1984 179,300 213,928

314,589 264,755

Provision for diminution in value of investment in subsidiary companies (7,499) (7,499)

307,090 257,256

Amount due from subsidiary companies 218,932 145,158

Provision for amount due from subsidiary companies (2,142) (3,323)

216,790 141,835

Dividends receivable from subsidiary companies 15,000 100,000

Amount due to subsidiary companies (2,846) (2,482)

Investments in subsidiary companies are stated at Directors’ valuation conducted in 1984 based on the net tangible assets value

of the subsidiary companies after the revaluation of their properties and was carried out primarily for the purpose as explained

in Note 2.3.

The amounts due to/from subsidiary companies are non-trade in nature, unsecured and are subject to interest at negotiated rates.

Details of subsidiary companies are as follows:

Name Principal activities Equity held

1999 1998

Incorporated in Malaysia: % %

Auto Blend Sdn Bhd Blending of battery water and brake fluid 100 100

Auto Components Manufacturers Sdn Bhd Property holding 100 100

Auto Infiniti Sdn Bhd Distribution of auto accessories 100 100

Ceranamas Sdn Bhd Property and investment holding 100 100

Cyberguard Vehicle Security Technologies Trading and marketing of car alarms 100 100

Sdn Bhd

Edaran Tan Chong Motor Sdn Bhd Distribution of motor vehicles 100 100

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1 0 . S U B S I D I A R Y C O M P A N I E S ( C o n t ’ d )


1999 1998

Incorporated in Malaysia (Cont’d): % %

Hikmat Asli Sdn Bhd Property holding 100 100

Pemasaran Alat Ganti Sdn Bhd Distribution of automotive spare parts 100 100

Perwiramas Sdn Bhd Investment holding 100 100

Rustcare Sdn Bhd Rust proofing 100 100

Sungei Bintang Sdn Bhd Property holding 100 100

Tan Chong & Sons Motor Co Sdn Bhd Distribution of motor vehicles 100 100

Tan Chong Agency Sdn Bhd Insurance agency and property holding 100 100

Tan Chong Ekspres Auto Servis Sdn Bhd Automotive workshop services 100 100

Tan Chong Industrial Equipment Distribution of commercial vehicles, 100 100

(Sabah) Sdn Bhd heavy equipment and machineries

Tan Chong Industrial Equipment Sdn Bhd Distribution of commercial vehicles 100 100

Tan Chong Motor Assemblies Sdn Bhd Assembly of motor vehicles 70 70

Tan Chong Trading (M) Sdn Bhd Distribution of automotive parts and accessories 100 100

Tanahku Holdings Sdn Bhd Property holding 100 100

TC Auto Tooling Sdn Bhd Fabrication of jigs and engineering services 100 100

TC Motors (Sarawak) Sdn Bhd Distribution of commercial vehicles, heavy 100 100

equipment and machineries

TCCL Sdn Bhd Insurance agency 100 100

TCM Stamping Products Sdn Bhd Manufacture of automotive press metal parts 100 100

Truckquip Sdn Bhd Distribution of automotive spare parts and 100 100

construction of vehicle bodies

TC Hartanah Sdn Bhd Property Holding 100 100


31 DECEMBER 1999

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31 DECEMBER 1999



1999 1998

Incorporated in Malaysia (Cont’d): % %

Vincus Holdings Sdn Bhd Investment holding 100 100

West Anchorage Sdn Bhd Investment holding 100 100

TCM Accessories Sdn Bhd Dormant 100 100

(formerly known as APM

Accessories Sdn Bhd)

Auto Research and Development Sdn Bhd Dormant 100 100

Auto Trucks & Components Sdn Bhd Dormant 100 100

Autokita Sdn Bhd Dormant 100 100

Fujiyama Car Cooler Sdn Bhd Dormant 100 100

Motor Image Enterprises Sdn Bhd Dormant 100 100

Perusahaan Komponen Kenderaan Sdn Bhd Dormant 100 70

TCRG Sdn Bhd Dormant 100 100

Incorporated in the British Virgin Islands:

Nissan TCM Pty Ltd Investment holding 75 75

Incorporated in Vietnam:

* Nissan TCM Vietnam Co Ltd Assembly of Nissan vehicles in Vietnam 56 56

* Company not audited by KPMG. Consolidated using management account.

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10.1 The Company’s shareholding in non-wholly owned subsidiaries are as follows:

Balance at Balance at

1.1.1999 Subscribed Sold 31.12.1999

Ordinary shares of RM1 each:

Tan Chong Motor Assemblies Sdn Bhd 700,000 – – 700,000

Ordinary shares of US$1 each:

Nissan TCM Pty Ltd 941,250 – – 941,250

Paid-in capital in US$:

Nissan TCM Vietnam Co Ltd 369,554 – – 369,554

1 1 . A S S O C I A T E D C O M P A N I E SGroup

1999 1998

RM’000 RM’000

Unquoted shares – at cost 625 625

Share of retained profits 2,530 2,247

3,155 2,872

Amount due from/(to) associated companies – 45

3,155 2,917

Details of associated companies are as follows:


1999 1998

% %

Incorporated in Malaysia:

Autoscope Sdn Bhd Export agency for automotive accessories 50 50

Structurflex Sdn Bhd Manufacture of truck side curtains components 50 50


31 DECEMBER 1999

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31 DECEMBER 1999

1 2 . L O N G T E R M I N V E S T M E N T SGroup Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Quoted shares - at cost 59,521 152,919 59,521 –

Market value 117,121 – 117,121 –

Sales consideration based on approved disposal price 91,954 – 91,954 –

The long term investments comprise the remaining equity interest in APM and WTCH respectively which are to be disposed to

Bumiputera investors at a sales consideration of RM1.74 and RM1.82 per ordinary share for APM and WTCH respectively.

The Securities Commission had, on 12 July 1999, approved a period of one (1) year from the date of admission of APM and WTCH

respectively to the Main Board of the Kuala Lumpur Stock Exchange for the disposal of the entire 30% equity interest in APM and

WTCH to Bumiputera investors.

1 3 . O T H E R I N V E S T M E N T SGroup

1999 1998

RM’000 RM’000

Unquoted shares – at cost 3,176 3,176

Provision for diminution in value of investments (1,368) (1,368)

1,808 1,808

1 4 . H I R E P U R C H A S E D E B T O R SGroup

1999 1998

RM’000 RM’000


Unearned interest (15,648) (15,300)

58,277 47,547

Provision for doubtful debts (2,170) (2,153)

56,107 45,394

Receivable within twelve months 21,585 16,716

Receivable after twelve months 34,522 28,678

56,107 45,394

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1 5 . S T O C K SGroup

1999 1998

RM’000 RM’000

Raw materials 13,307 9,234

Finished goods, trading stocks and assembled motor vehicles 124,172 227,811

Work-in-progress 14,149 15,817

Unassembled vehicle packs 124,611 109,549

Spare parts and others 33,854 32,244

310,093 394,655

Provision for slow moving stocks (20,001) (27,140)

290,092 367,515

1 6 . S H O R T T E R M I N V E S T M E N TGroup Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Unquoted investment – at cost 100 – – –

1 7 . T R A D E D E B T O R SGroup

1999 1998

RM’000 RM’000


Provision for doubtful debts (12,459) (13,948)

72,027 55,282

Included in trade debtors are amounts totalling RM9.325 million (1998 – RM9.475 million) and RM2.181 million (1998 – RM0.663

million) owing by certain subsidiary companies of the APM and WTCH Groups respectively.


31 DECEMBER 1999

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1 8 . O T H E R D E B T O R S , D E P O S I T S A N D P R E P A Y M E N T S

Group

Included in other debtors, deposits and prepayments are amounts totalling RM19.213 million (1998 – RM68.602 million) and

RM0.645 million (1998 – RM3.273 million) owing by certain companies of the APM and WTCH Groups respectively.


Company

Included in other debtors, deposits and prepayments are amounts totalling RM7.513 million (1998 – RM57.058 million) and RM0.593

million (1998 – RM2.204 million) owing by certain companies of the APM and WTCH Groups respectively.


1 9 . S H O R T T E R M D E P O S I T SGroup

1999 1998

RM’000 RM’000

Deposits with licensed banks 111,656 6,631

Deposits with finance companies 24,586 72,838

Deposits with other corporations 45,383 2,415

181,625 81,884

2 0 . T U R N O V E R

The Group’s turnover represents the invoiced value (including Government duties and taxes) of goods and services supplied to

customers.

The Company’s turnover comprises dividends and management fees from companies in the Group.


31 DECEMBER 1999

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2 1 . O P E R A T I N G P R O F I T / ( L O S S )Group Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Operating profit/(loss) is arrived at after charging:

Auditors’ remuneration

– current year provision 200 194 32 8

– underprovision in previous year 15 11 23 12

Bad debts written off 96 5 – –

Deferred expenditure amortised/written off – 7 – –

Depreciation and amortisation of fixed assets 11,449 12,349 235 162

Directors’ remuneration

– fees 84 84 84 84

– emoluments 4,429 4,089 3,668 3,304

– benefits-in-kind 102 142 102 128

Fees paid to a director for professional services rendered 41 – 41 –

Fixed assets written off 2 523 2 –

Investment in a subsidiary company written off – 4,798 – –

Loss on foreign exchange – 208 – 206

Other interest expense 2,645 1,942 95 135

Provision for doubtful debts 1,048 7,237 – –

Provision for retirement benefits 1,191 1,605 709 1,365

Provision for slow moving stocks 3,326 17,298 – –

Rental of premises

– related companies – – 491 491

– others 3,812 4,051 13 24

Stocks written off – 846 – –

Term loan interest 6,198 13,008 6,196 12,611

And after crediting:

Bad debts recovered 393 91 – –

Gain on disposal of fixed assets 299 352 189 –

Gain on foreign exchange 371 – 25 –

Gross dividends from subsidiary companies – – 694 24,251

Gross dividends from other investments 353 – – –

Interest income

– subsidiary companies – – 8,830 13,118

– others 7,232 4,981 – –

Management fees from subsidiary companies – – 14 11

Rental income of properties 6,338 1,052 18 –

Write back of stocks written off 5,405 5,265 – –

Write back of provision for diminution

in value of investments – – 1,920 –

Write back of provision for doubtful debts 5,377 547 1,181 –

Write back of provision for slow moving stocks 6,790 3 – –


31 DECEMBER 1999

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31 DECEMBER 1999

2 2 . E X C E P T I O N A L I T E M SGroup Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Surplus arising from the disposal of

APM and WTCH shares 51,194 – 51,194 –

Surplus arising from the reorganisation

of Autoparts and Non-Motor Divisions – – 102,671 –

Surplus arising from the rationalisation

of Foreign Division – – – 383,333

Gross dividends from companies in the

APM and WTCH Groups 245,861 69,444 245,861 69,444

Gross dividends from companies in

the TCMH, APM and Foreign Groups – – 159,722 769,759

297,055 69,444 559,448 1,222,536

2 3 . T A X A T I O NGroup Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Operating Profit

Taxation based on the results for the year:

Malaysian taxation 328 8,303 195 6,791

Taxation overprovided in respect of prior years (10) (448) – (647)

Deferred taxation (248) (387) – –

70 7,468 195 6,144

Share of associated companies’ taxation – 94 – –

70 7,562 195 6,144

Current year taxation on dividend income

taken up in exceptional items (Note 22) 60,861 19,444 105,583 222,351

60,931 27,006 105,778 228,495

The taxation charge for the Company for the previous year was lower than the statutory tax rate due mainly to the surplus arising

from the rationalisation and demerger of the Foreign Division which are not taxable. The Group’s taxation charge for the previous

year relates to tax on profits of certain subsidiary companies which cannot be off-set against losses of other subsidiary companies

for tax purposes as group relief is not available.

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2 3 . T A X A T I O N ( C o n t ’ d )

The current year’s taxation charge for the Company in relation to its dividend income is lower than the statutory tax rate as part

of the dividends were tax exempt. Surplus arising from the reorganisation and demerger of the Autoparts and Non-Motor Divisions

are not taxable.

No provision for taxation was made on the operating profit of the Group for the financial year due to the tax waiver for 1999

pursuant to the Income Tax (Amendment) Act, 1999. The taxation on exceptional items at both the Group and Company level is

due to non-tax exempt dividend income received by the Group and the Company from its former subsidiary companies.

2 4 . D I V I D E N D SGroup Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Dividends paid:

Special Dividend in Cash (Dividend No. I) 94,617 – 94,617 –

Special Dividend in Specie (Dividend No. II) 114,516 – 114,516 –

Special Dividend in Specie (Dividend No. III) 38,403 – 38,403 –

Dividends proposed:

Special Dividend in Cash (Dividend No. IV) 49,973 – 49,973 –

297,509 – 297,509 –

2 5 . E A R N I N G S P E R S H A R E – G R O U P

The earnings per share including exceptional items for the year is 46.3 sen (1998 – earnings per share of 4.46 sen). This is calculated

by dividing the Group profit attributable to members of the Company and including exceptional items of RM310.973 million (1998

– profit of RM29.990 million) by the number of shares of the Company in issue during the year.

The earnings per share excluding exceptional items is 11.1 sen (1998 – loss per share of 3.0 sen). This is calculated by dividing the

Group profit attributable to members of the Company and excluding exceptional items of RM74.779 million (1998 – loss of RM20.010

million) by the number of shares of the Company in issue during the year.


31 DECEMBER 1999

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31 DECEMBER 1999

2 6 . C A P I T A L C O M M I T M E N T SGroup

1999 1998

RM’000 RM’000

Capital expenditure approved and contracted for – 112

Capital expenditure approved but not contracted for 42,305 43,004

2 7 . C O N T I N G E N T L I A B I L I T I E S ( U N S E C U R E D )Group Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Guarantees to banks for credit facilities utilised by:

– subsidiary companies – – 92 3

– third party 720 1,203 – –

Compensation claim on breach of contract 46 46 – –

766 1,249 92 3

The gross amount of the credit facilities guaranteed

are as follows:

– subsidiary companies – – 5,000 5,000

– associated company 224 224 – –

– third party 2,400 1,800 – –

2,624 2,024 5,000 5,000

2 8 . S I G N I F I C A N T T R A N S A C T I O N S W I T H R E L A T E D C O M P A N I E SCompany

1999 1998

RM’000 RM’000

Management fees receivable from subsidiary companies 14 11

Interest receivable from subsidiary companies 8,830 13,118

Interest payable to subsidiary companies 95 135

Gross dividends from subsidiary companies

– ordinary dividends 694 24,251

– special dividends 159,722 769,759

The directors are of the opinion that the above transactions have been entered into in the normal course of business and have been

established under negotiated terms.

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2 9 . S I G N I F I C A N T T R A N S A C T I O N S W I T H R E L A T E D P A R T I E S

Other than as disclosed in Notes 7 and 18 to the accounts, the significant related party transactions are:

Group Company

1999 1998 1999 1998

RM’000 RM’000 RM’000 RM’000

Management fees receivable from

– APM Group 12 – 12 6

– WTCH Group 8 – 8 5

Sales to

– APM Group 816 109 – –

– WTCH Group 1,395 1,417 – –

Purchases from

– APM Group 38,022 13,041 – –

– WTCH Group 4,606 2,943 – –

Interest receivable from

– APM Group 554 761 517 534

– WTCH Group 32 513 32 513

Interest payable to

– APM Group 1,493 2,576 – –

– WTCH Group 1,003 372 – –

Rental of premises from WTCH Group 448 506 – –

Rental of premises to

– APM Group 908 955 – –

– WTCH Group 465 591 – –

Gross dividends from

– APM Group 191,667 69,444 191,667 69,444

– WTCH Group 54,194 – 54,194 –

Commissions on policies sold to

– APM Group 127 98 – –

– WTCH Group 61 53 – –

Sales to a company in which certain

directors have substantial interest 6,327 2,696 – –

Purchases of fixed assets from WTCH Group 2 – – –

The directors are of the opinion that the above transactions have been entered into in the normal course of business and have been

established under negotiated terms.

3 0 . S I G N I F I C A N T E V E N T S D U R I N G T H E Y E A R

In December 1999, the Company completed the reorganisation and demerger of its Autoparts and Non-Motor Divisions (“TCMH

Scheme”) the details of which were set out in the Circular To Shareholders dated 29 September 1999. The TCMH Scheme was

approved by the shareholders of the Company in an Extraordinary General Meeting held on 14 October 1999.


31 DECEMBER 1999

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31 DECEMBER 1999

3 0 . S I G N I F I C A N T E V E N T S D U R I N G T H E Y E A R ( C o n t ’ d )

The TCMH Scheme comprised the following steps:

(a) An internal reorganisation of the Autoparts and Non-Motor Divisions involving the re-grouping of companies comprising the

Autoparts and Non-Motor Divisions under intermediate holding vehicles, APM Automotive Holdings Berhad (“APM”) and Warisan

TC Holdings Berhad (“WTCH”) respectively, and the granting of rights to allotment (“RTAs”) of 201,599,999 and 67,199,999 ordinary

shares of RM1.00 each in APM and WTCH respectively to the Company.

(b) The Company paid special net dividends in specie (Dividends No. II and III) totalling RM152,918,990 or approximately 45.51% per

TCMH share to the Company’s shareholders, which was satisfied by the renunciation to the Company’s shareholders of the RTAs

of 50% of the enlarged share capital in APM and WTCH respectively.

(c) The Company disposed of 20% of the equity interest in APM and WTCH respectively to Parasand Ltd (“the Controlling

Shareholders”) represented by the RTAs of 40,320,000 ordinary shares of RM1.00 each in APM and 13,440,000 ordinary shares of

RM1.00 each in WTCH at RM1.74 and RM1.82 per ordinary share respectively for cash. The Company received a total cash

consideration of RM94,617,600 from the Controlling Shareholders for the disposals.

(d) The Company is to dispose of 30% of the equity interest in APM and WTCH respectively comprising the RTAs of 60,480,000 and

20,160,000 ordinary shares of RM1.00 each in APM and WTCH respectively to Bumiputera investors approved by the Ministry of

International Trade and Industry (“MITI”) at RM1.74 and RM1.82 per ordinary share respectively for cash, in order to comply with

the National Development Policy. The Company will receive a total of RM141,926,400 in cash upon full disposal of the equity interest

to the Bumiputera investors. As at 31 December 1999, the Company disposed of 9.7% and 13.04% of the equity interest in APM

and WTCH respectively to the Bumiptera investors for a total cash consideration of RM34,023,960 and RM15,948,660 respectively.

(e) The entire issued and paid-up share capital of APM and WTCH comprising 201,600,000 and 67,200,000 ordinary shares of RM1.00

each respectively were listed on the Main Board of the Kuala Lumpur Stock Exchange on 15 December 1999.

(f) The total cash proceeds of RM236,544,000 from the disposals will be distributed entirely to the shareholders of the Company on

a pro-rata basis by way of special dividends. As at 31 December 1999, the Company had distributed RM94,617,600 to the

shareholders of the Company by way of a special dividend in cash (Dividend No. I) and another payment of a special dividend in

cash of (Dividend No. IV) RM49,972,620 on 25 February 2000.

3 1 . S I G N I F I C A N T P O S T B A L A N C E S H E E T E V E N T

On 24 March 2000, the Company completed the disposal of the remaining equity interest in APM and WTCH to the Bumiputera

investors approved by the MITI.

The equity interest of 20.3% and 16.96% in APM and WTCH respectively comprising 40,926,000 and 11,397,000 ordinary shares

of RM1.00 each in APM and WTCH respectively were disposed of at RM1.74 and RM1.82 per ordinary share respectively for cash.

The Company received a total cash consideration of RM91,953,780 from the disposals and recorded an exceptional surplus of

RM32,432,770 from the disposals.

The cash proceeds will be distributed entirely to the shareholders of the Company on a pro-rata basis by way of special dividend

in cash (Dividend No. V), which will be paid on 19 May 2000.

3 2 . S E G M E N T A L I N F O R M A T I O N

Segmental reporting is not disclosed as required by International Accounting Standard (IAS) No. 14 on reporting by segment as

the Group predominantly assembles and sells motor vehicles in Malaysia.

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3 3 . C O M P A R A T I V E F I G U R E S

The following comparative figures have been restated to conform with the current year’s presentation as required under Malaysian

Accounting Standard No. 2 on “Accounting for Acquisitions and Mergers”. These comparative figures have been restated to exclude

the operations of the companies comprising the Autoparts and Non-Motor Divisions which have been demerged under the TCMH

Scheme on the basis that the demerger took place before 1 January 1998.

33.1 Consolidated Balance Sheet As previously

As restated stated

RM’000 RM’000

SHARE CAPITAL 336,000 336,000

RESERVES 397,835 552,658

733,835 888,658


DEFERRED TAXATION 934 3,545


TERM LOANS (UNSECURED) 147,500 148,584

895,505 1,060,746

CURRENT LIABILITIES

Trade creditors 19,460 60,812


Term loans (unsecured) – 1,464

Short term borrowings (unsecured) 3,607 6,180

Taxation 41,324 58,035

123,608 222,048

1,019,113 1,282,794

FIXED ASSETS 216,422 373,919

ASSOCIATED COMPANIES 2,917 7,594

LONG TERM INVESTMENTS 152,919 –

OTHER INVESTMENTS 1,808 1,818

DEFERRED EXPENDITURE – 482

HIRE PURCHASE DEBTORS 28,678 28,678

CURRENT ASSETS

Stocks 367,515 503,367



Other debtors, deposits and prepayments 83,460 23,420


616,369 870,303

1,019,113 1,282,794


31 DECEMBER 1999

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31 DECEMBER 1999

3 3 . C O M P A R A T I V E F I G U R E S ( C o n t ’ d )

33.2 Consolidated Profit and Loss Account As previously

As restated stated

RM’000 RM’000

Turnover 483,228 939,043

Cost of sales 423,147 793,040

Operating loss (13,691) (4,366)

Exceptional items 69,444 –

Profit/(Loss) before taxation 55,753 (4,366)



Taxation – Operating profit (7,562) (5,926)

– Exceptional items (19,444) –

(27,006) (5,926)

Profit/(Loss) after taxation 28,820 (9,388)

Minority interests 1,170 1,233

Profit/(Loss) attributable to members of the Company 29,990 (8,155)



Appropriation:

Dividends – –





Associated companies 2,247 4,226

396,464 550,957

Earnings/(Loss) per share including exceptional items (sen) 4.46 (1.21)

Loss per share excluding exceptional items (sen) (3.0) (1.21)

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33.3 Consolidated Cash Flow Statement As previously

As restated stated

RM’000 RM’000

CASH FLOWS FROM OPERATING ACTIVITIES


Adjustments for:

Bad debts recovered (91) (108)

Bad debts written off 5 1,417

Deferred expenditure amortised/written off 7 181

Depreciation and amortisation of fixed assets 12,349 38,572

Fixed assets written off 523 618

Gain on disposal of fixed assets (352) (1,019)

Interest expense 14,950 17,282

Interest income (4,981) (8,489)

Provision for doubtful debts 6,690 5,805

Provision for retirement benefits 1,605 2,269

Provision for slow moving stocks 17,295 25,623

Reversal of share of losses upon disposal of an associated company – (953)

Share of profit of associated companies (net of dividends received) (73) (904)

Stocks written off 846 2,491

Write back of stocks written off (5,265) (5,265)

Operating profit before working capital changes 99,334 74,058

Increase/(Decrease) in working capital:

Stocks 122,152 173,805


Other debtors, deposits and prepayments (19,616) 22,454


Amount due from associated companies (897) (1,707)

Trade creditors (63,182) (60,491)

Other creditors (42,169) (70,958)

Cash generated from operations 162,911 264,996

Interest paid (14,950) (17,282)

Interest received 4,981 8,489

Retirement benefits paid (2,041) (2,667)

Taxation paid (88,972) (95,137)

Net cash generated from operating activities 61,929 158,399


31 DECEMBER 1999

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33.3 Consolidated Cash Flow Statement (Cont’d) As previously

As restated stated

RM’000 RM’000

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of additional shares in associated company (150) (150)

Additional deferred expenditure incurred – (470)

Net funds from minority interests (51) 640

Proceeds from disposal of fixed assets 590 4,859

Purchase of fixed assets (12,470) (33,747)

Net cash used in investing activities (12,081) (28,868)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid to minority shareholders (410) (410)

Dividends paid to shareholders (16,934) (16,934)

Repayment of term loans (10,000) (13,199)

Net cash used in financing activities (27,344) (30,543)

EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CONSOLIDATION 87 (26)

NET INCREASE IN CASH AND CASH EQUIVALENTS 22,591 98,962

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 67,198 89,763

CASH AND CASH EQUIVALENTS AT END OF YEAR 89,789 188,725

CASH AND CASH EQUIVALENTS COMPRISE:

Short term deposits 81,884 –


Short term borrowings (3,607) (6,180)

89,789 188,725


31 DECEMBER 1999

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Shareholders’ StatisticsAS AT 31 MARCH 2000

S H A R E C A P I T A L

Authorised – RM500,000,000

Issued and Fully Paid-up – RM336,000,000

Class of Shares – Ordinary shares of RM0.50 each

Voting Rights – 1 vote per ordinary share

T W E N T Y L A R G E S T S H A R E H O L D E R S

Name No. of Shares Held %

1. Tan Chong Consolidated Sdn Bhd 130,266,662 19.3849

2. CIMB Nominees (Tempatan) Sdn Bhd

Pledged Securities Account for Tan Chong Consolidated Sdn Bhd 100,000,000 14.8810

3. The Central Depository (Pte) Limited 93,635,832 13.9339

4. Mayban Nominees (Tempatan) Sdn Bhd

Tan Chong Consolidated Sdn Bhd 45,000,000 6.6964

5. Cartaban Nominees (Asing) Sdn Bhd

Daiwa Securities SB Capital Markets Co Ltd for Nissan Motor Co Ltd 37,333,324 5.5556

6. Employees Provident Fund Board 22,373,000 3.3293

7. CIMSEC Nominees (Tempatan) Sdn Bhd

Allied Investments Limited for Tan Chong Consolidated Sdn Bhd 20,000,000 2.9762


Pledged Sec A/C Tan Chong Consolidated Sdn Bhd 9,000,000 1.3393

9. HSBC Nominees (Asing) Sdn Bhd

TMIS for United Nations Joint Staff Pension Fund 7,931,000 1.1802


UBS AG EX UBS for Pacific Investment Fund 7,576,000 1.1274


CMB LDN for The Malaysia Fund Incorporated 3,697,000 0.5501

12. HLG Nominee (Asing) Sdn Bhd

Dao Heng Bank Ltd for Boronia Corporation 3,690,000 0.5491

13. Chase Malaysia Nominees (Asing) Sdn Bhd

Emerging Markets Growth Fund 3,570,000 0.5312


Meespierson SG for Sommerset Assets Limited 3,288,993 0.4894

15. Tan Kim Hor 3,074,834 0.4576

16. Bank Simpanan Nasional 2,873,000 0.4275

17. Citicorp Nominees (Asing) Sdn Bhd

MLPFS for Hang Chooi Seng 2,515,000 0.3742

18. Prudential Assurance Malaysia Berhad 2,281,000 0.3394

19. Cartaban Nominees (Asing) Sdn Bhd

SSBT Fund ZV3M for IFC Emerging Markets Fund-Malaysia 1,935,500 0.2880


Pledged Securities Account for Tan Eng Hwa 1,700,000 0.2530

501,741,145 74.6638

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Shareholders’ Statistics (Cont’d)

AS AT 31 M A RCH 2000

A N A L Y S I S B Y S I Z E O F H O L D I N G S

Size of Holdings No. of Holders % No. of Shares Held %

1 – 499 212 1.1979 25,729 0.0038

500 – 5,000 13,718 77.5160 30,186,936 4.4921

5,001 – 10,000 1,927 10.8888 16,562,531 2.4647

10,001 – 100,000 1,614 9.1202 45,814,496 6.8176

100,001 – 1,000,000 192 1.0849 59,817,063 8.9013

Above 1,000,000 34 0.1921 519,593,245 77.3204

17,697 100.0000 672,000,000 100.0000

S U B S T A N T I A L S H A R E H O L D E R S (as per Register of Substantial Shareholders)

Name No. of Shares Held %

1. Tan Chong Consolidated Sdn Bhd 304,266,662* 45.28

2. Nissan Motor Co Ltd 37,333,324 5.56

3. Employees Provident Fund Board 24,392,000 3.63

* Dato’ Tan Kim Hor, Dato’ Tan Heng Chew, Dr Tan Ban Leong, Messrs Tan Beng Keong, Tan Boon Pun, Tan Eng Soon, Tan Hoe Pin, Dr Tan Kang Leong

and Mr Tan Kheng Leong are deemed interested in the shares held by Tan Chong Consolidated Sdn Bhd by virtue of Section 6A of the Companies

Act, 1965, and consequently are substantial shareholders of Tan Chong Motor Holdings Berhad.

T A N C H O N G M O T O R H O L D I N G S B E R H A DD a i l y S h a r e P r i c e s & V o l u m e T r a d e d o n K L S E

Share Price(RM)


CompositeIndex

Pre-demerger Post-demerger(Company without APM Group & Warisan Group)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

1999 2000

Ex-d

ate

0

2

4

6

8

10

12

0

0.6

1.2

1.8

2.4

3.0

3.6

0

200

400

600

800

1000

1200




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T E R M S O F R E F E R E N C E

1. Membership

The Audit Committee shall be appointed by the Board

amongst the Directors of the Company and shall consists of

not less than 3 members, a majority of whom shall be Non-

executive Directors. A quorum shall be 2 members.

The Chairman of the Audit Committee shall be appointed

by the members of the Committee and must be a Non-

executive Director.

2. Attendance at Meetings

The Finance Director and Head of Internal Audit shall

attend Audit Committee meetings.

The external Auditor or his representative has the right

to appear and be heard at any meeting of the Audit

Committee. The external Auditor shall appear before the

Audit Committee when required to do so by the Committee.

The Audit Committee shall meet with the external Auditor

without any officers of the Company present once a year.

The Company Secretary shall be the Secretary of the Audit

Committee.

3. Frequency of Meetings

Audit Committee meetings shall be held not less than three

times a year.

The external Auditor may request an Audit Committee

meeting if he considers that one is necessary. The Chairman

of the Audit Committee, upon the request of the external

Auditor, shall convene a meeting of the Audit Committee

to consider any matters the external Auditor believes

should be brought to the attention of the Directors or

Shareholders.

4. Reporting Procedures

The Secretary shall circulate the minutes of meetings of

the Audit Committee to all members of the Board.

5. Authority

The Audit Committee is authorised by the Board to

investigate any activity within its terms of reference. It is

authorised to seek any information it requires from any

employee and all employees are directed to co-operate with

any request made by the Committee.

The Audit Committee is authorised by the Board to obtain

outside legal or other independent professional advice

and to secure the attendance of outsiders with relevant

experience and expertise if it considers this necessary.

6. Duties & Responsibilities

The following are the duties and responsibilities of the

Audit Committee:

- To consider the appointment of the external Auditor, the

audit fee and any questions of resignation or dismissal;

- To discuss with the external Auditor, before the audit

commences, the nature and scope of the audit and

ensure co-ordination where more than one audit firm is

involved;

- To review the quarterly and annual financial statements

before submission to the Board, focusing particularly on:

• any changes in accounting policies and practices

• major judgemental areas

• significant adjustments resulting from the audit

• the going concern assumption

• compliance with accounting standards

• compliance with stock exchange and legal requirements

- To discuss problems and reservations arising from

the interim and final audits, and any matters the

external Auditor may wish to discuss (in the absence

of management, if necessary);

- To review the internal audit programme, consider the

major findings of internal audit investigations and

management’s response and ensure co-ordination

between the internal and external Auditors;

- To keep under review the effectiveness of internal

control systems and, in particular, review the external

Auditor’s management letter and management’s

response; and

- To consider other matters as may be agreed to by the

Audit Committee and the Board of Directors.

Audit Committee

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Tenure/ Net Book Age of

Location Description Land Area Expiry Date Value Building

(sq feet) (RM million) (years)

249 Jalan Segambut Assembly plant, offices, 806,557 Leasehold 36.16 24

51200 Kuala Lumpur workshop & vehicle 14.01.2073

storage yard 77,662 Leasehold 3.33

20.04.2068

Lot 10230 Mukim of Batu Vacant land 14,514 Freehold 0.55

Jalan Segambut

51200 Kuala Lumpur


Jalan Segambut

51200 Kuala Lumpur


Jalan Segambut

51200 Kuala Lumpur

Lot 49393 Jalan Segambut Vacant land 2,886 Leasehold 0.03

51200 Kuala Lumpur 20.04.2068

P.T. 7702 Jalan Segambut Vehicle storage yard 133,064 Freehold 6.00

51200 Kuala Lumpur

Lot 4185 Jalan Segambut Office & factory 147,066 Freehold 8.00 7

51200 Kuala Lumpur

Lot 43097 Mukim of Batu Warehouse & vehicle 339,456 Leasehold 1.54 2

Off Jalan Segambut storage yard 27.01.2074

51200 Kuala Lumpur

327, 33/4 Miles Pre-delivery inspection centre 114,187 Leasehold 3.63 33

Jalan Segambut 04.07.2065

51200 Kuala Lumpur

Lot 1474 Jalan Segambut Vehicle storage yard 89,659 Freehold 3.10

52000 Kuala Lumpur


52000 Kuala Lumpur


52000 Kuala Lumpur

Group Properties

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Group Properties (Cont’d)




582, 31/2 Miles, Jalan Ipoh Office, vehicle storage bay 19,752 Freehold 2.15 20

51200 Kuala Lumpur & showroom

62 – 68 Jalan Ipoh Showroom & office 7,533 Freehold 6.56 44

51200 Kuala Lumpur

21 Jalan Ipoh Kecil Head office building 7,571 Freehold 2.66 14

50350 Kuala Lumpur

Lot 1388 Jalan Seri Amar Levelled commercial land 22,184 Freehold 12.72

50350 Kuala Lumpur for rental

Lot UG01, Kompleks Wilayah Showroom & office 4,827 Freehold 1.92 16

2 Jalan Munshi Abdullah

50100 Kuala Lumpur

Lot UG04 – 06, Kompleks Wilayah Showroom & office 602 Freehold 0.43 16

2 Jalan Munshi Abdullah

50100 Kuala Lumpur

LG045 Sungei Wang Plaza Retail lot for rental 621 Freehold 0.50 20

Jalan Bukit Bintang

55100 Kuala Lumpur

8C-3-2 Sri Murni Condominium Apartment for rental 1,938 Freehold 0.61 6

8 Lorong Kota 4

Bukit Ledang

50480 Kuala Lumpur

Plot 28, Sec 52, Jalan Pudu Car showroom 1,600 Leasehold 0.49 15

55100 Kuala Lumpur 23.03.2075

Plot 29, Sec 52, Jalan Pudu Office & upper floors for rental 1,600 Leasehold 0.50 15

55100 Kuala Lumpur 23.03.2075

34 Jalan Sibu 17, Taman Wahyu Office, warehouse & industrial 3,600 Leasehold 0.20 18

68100 Kuala Lumpur building for rental 25.12.2078



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Lot 3 Jalan Perusahaan Satu Factory, warehouse & offices 425,630 Leasehold 15.99 17

Batu Caves, 68100 Selangor 05.09.2074

142 Jalan SBC 3 Shoplot for rental 2,512 Freehold 1.58 1

Taman Sri Batu Caves

68100 Batu Caves, Selangor

117 – 119 Jalan SS15/5 Showroom & offices for rental 3,520 Freehold 0.83 19

47500 Subang Jaya

Lot 7834 Sungai Rasa Factory for rental 63,368 Freehold 5.12 9

Jalan Batu Tiga Lama

41300 Klang, Selangor

53 & 55 Jalan Satu Kawasan 16 Showroom & offices for rental 4,508 Freehold 0.82 17

Off Jalan Batu Tiga

(Berkeley Town Centre)

41150 Klang, Selangor

P.T. 10451 Mukim Serendah Industrial land for rental 2,178,020 Leasehold 8.85

Daerah Hulu Selangor 24.04.2095

63, 63A & 63B Jalan Tun Perak Showroom, office, store 18,252 Leasehold 1.62 33

75300 Melaka and workshop 02.07.2052

36 Jalan IMJ 5 Shoplot for rental 9,587 Leasehold 0.44 5

Taman Industry Malim Jaya 18.11.2095

75050 Malacca

260 Jalan Tun Dr Ismail Showroom & office 19,376 Freehold 1.94 15

70200 Seremban

Negeri Sembilan

Lot 151 Jalan Lombong Emas 6 Workshop & spare parts store 33,121 Leasehold 1.30 3

Seremban Light Industrial Park 06.04.2090

70200 Seremban, Negeri Sembilan





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Lot 1599 Bandar Penggaram Commercial land for rental 53,933 Freehold 1.40

Jalan Zabedah

83000 Batu Pahat, Johor

Lot 690 & 691 Shoplots for rental 1,680 Leasehold 0.42 43

14 & 15 Jalan Tuanku Mokhtar Ismail 11.02.2052

86000 Kluang, Johor 1,680 Leasehold

02.02.2052

Lot 7348, 27 Jalan Tun Abd Razak Showroom, office & 18,295 Freehold 2.68 6

Susur 2, 80100 Johor Bahru, Johor offices for rental

Plot 157 Jalan Angkasa Mas 6 Office & workshop 87,120 Leasehold 1.67 4

Kawasan Perindustrial Tebrau II 25.10.2053

81100 Johor Bahru, Johor

A7348 Jalan Berserah Showroom, office, warehouse 44,420 Freehold 5.95 16

25300 Kuantan, Pahang and workshop

10B Kayangan Apartment Apartment for rental 3,250 Freehold 0.33 19

69000 Genting Highlands, Pahang

Lot 31036 & 31037 Showroom, office, workshop 40,292 Leasehold 1.31 14

Jalan Kuala Kangsar & spare parts store 24.09.2894

30010 Ipoh, Perak

Plot 70 Office & workshop 4,887 Leasehold 0.26 3

Kinta Jaya Light Industrial Park 01.03.2095

30250 Ipoh, Perak

Lot 30502 Workshop for rental 6,806 Freehold 0.36 27

Jalan Sultan Iskandar Shah

30000 Ipoh, Perak

204 Jalan Sultan Iskandar Shah Shoplot for rental 1,740 Freehold 0.36 24

30000 Ipoh, Perak

Lot 5688 Levelled industrial land 174,240 Leasehold 0.30

Parit Buntar Industrial Park for rental 28.11.2044

34200 Perak

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478 – 481 Taman Kota Jaya Shoplots for rental 9,091 Leasehold 0.77 19

Jalan Kampong Dew 16.11.2065

34700 Simpang, Taiping, Perak

119 Jalan Changkat Jong Shoplot for rental 2,979 Freehold 0.20 20

36000 Teluk Intan, Perak

Lot 2224 Jalan Changkat Jong Levelled industrial land 26,299 Freehold 0.49

36000 Teluk Intan, Perak for rental

39 Jalan Durian Shoplot for rental 3,088 Leasehold 0.18 16

Taman Kampar Jaya 23.11.2060

31900 Kampar, Perak

41 Jalan Durian Shoplot for rental 1,600 Leasehold 0.15 16

Taman Kampar Jaya 23.11.2060

31900 Kampar, Perak

Plot 12 & 13 Slim Indah Shoplots for rental 5,821 Leasehold 0.23 16

35800 Slim River, Perak 20.03.2082

Plot 25 & 26 Juru Industrial Park Showroom & office 4,800 Freehold 0.36 2

Juru Seberang Prai Tengah

14000 Pulau Pinang

23 Weld Quay/274 Victoria Street Showroom & office for rental 17,967 Freehold 6.67 27

10300 Pulau Pinang

127 Jalan Petani Spare parts store & workshop 10,882 Freehold 0.92 13

10150 Pulau Pinang

1461 Jalan Besar, Sg Jawi Shoplot for rental 3,850 Freehold 0.24 13

13700 Seberang Prai Selatan

Pulau Pinang

996 Jalan Baru Showroom, workshop & 85,900 Freehold 4.14 15

13700 Seberang Prai spare parts centre

Pulau Pinang

267 Jalan Baru Shoplot for rental 2,126 Leasehold 0.27 15

01000 Kangar, Perlis 07.02.2083

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1 Jalan Tunggal Shoplot for rental 2,987 Leasehold 0.33 15

01000 Kangar, Perlis 07.02.2083

27, 29 & 30D Showroom, office & workshop 5,600 Freehold 0.94 29

Seberang Jalan Putra Mergong for rental

05150 Alor Setar, Kedah

96J Jalan Seberang Putra Office, warehouse, showroom 24,383 Leasehold 0.87 9

05150 Alor Setar, Kedah & workshop 09.04.2031

2838 Jalan Temenggong Building for rental 14,748 Freehold 1.25 33

15000 Kota Baru, Kelantan

Plot 3 (TL207528934) Showroom, office, workshop 129,240 Leasehold 2.25 2

Jalan Tun Mustapha & warehouse 31.12.2042

87015 Labuan, Sabah

53/4 Miles (CLO15333936) Office & workshop 20,790 Leasehold 1.24 6

Jalan Tuaran, Inanam 31.08.2026

88300 Kota Kinabalu, Sabah

51/2 Miles (CLO15328695) Showroom, office, workshop 99,490 Leasehold 2.75 17

Jalan Tuaran, Inanam & spare parts centre 31.12.2025

88300 Kota Kinabalu, Sabah

Lot 242 Jalan Abell Showroom, office & workshop 14,500 Leasehold 0.75 22

93100 Kuching, Sarawak 31.12.2024

Lot 869 Section 66 Showroom, office, workshop, 32,668 Leasehold 0.57 4

Jalan Kemajuan store & vehicle storage yard 31.12.2034

Pending Industrial Estate

93450 Kuching, Sarawak





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Form of Proxy

I/We ________________________________________________________________________________________________________________________

of (address) _________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________

being a member/members of TAN CHONG MOTOR HOLDINGS BERHAD, hereby appoint (Name of Proxy/Proxies/Corporate Representative)

____________________________________________________________________________________________________________________________ ,

or failing him (name) _____________________________________________________________________________________________ of (address)

____________________________________________________________________________________________________________________________

or failing the abovenamed proxy/proxies/corporate representative, the Chairman of the meeting, as my/our proxy to vote for me/us

on my/our behalf at the Twenty-Eighth Annual General Meeting of the Company to be held at 3rd Floor, 21 Jalan Ipoh Kecil,

50350 Kuala Lumpur, Malaysia on Wednesday 24 May 2000 at 11:00 a.m., and at any adjournment thereof, as indicated below:

For Against

Resolution 1 Reports and Accounts

Resolution 2 Dato’ Tan Kim Hor

Resolution 3 Dato’ Tan Heng Chew

Resolution 4 Encik Azman bin Badrillah

Resolution 5 Directors’ fees

Resolution 6 Auditors

Resolution 7 Amendments to the Articles of Association and Adoption of

New Articles of Asociation

(If you wish to instruct your proxy how to vote, insert a tick in the appropriate box. Subject to any voting instructions so given, the proxy will vote, or mayabstain from voting on any resolution as he may think fit.)

If the member is an individual :

No. of shares held: _________________________________

_______________________________________

Signature Date: _____________________________________________

If the member is a corporation:

The Common Seal of ___________________________

was hereunto affixed in accordance with its seal

Articles of Association in the presence of

No. of shares held: _________________________________

_______________________________________________

Director Director/Secretary Date: _____________________________________________

Notes:1. A member entitled to vote is entitled to appoint a proxy or proxies (but not more than two) to attend and vote for him. A proxy need not be a member

of the Company, and, where there are two proxies, the number of shares to be represented by each proxy must be stated.2. In the case of a corporation, the form of proxy appointing a corporate representative must be executed under seal or under the hand of an officer or

attorney duly authorised.3. To be valid, the form of proxy must be deposited at the Registered Office of the Company, 62 - 68 Jalan Ipoh, 51200 Kuala Lumpur, Malaysia, not less

than forty-eight hours before the time appointed for the meeting.

TAN␣ CHONG␣ MOTOR␣ HOLDINGS␣ BERHAD␣ (12969-P)␣ (Incorporated in Malaysia)

First fold

Second fold

Affixstamphere

The Company Secretary

TAN CHONG MOTOR HOLDINGS BERHAD

62 - 68 Jalan Ipoh

51200 Kuala Lumpur

Malaysia

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Documents

TAN␣ CHONG␣ MOTOR␣ HOLDINGS␣ BERHAD - …tanchonggroup.listedcompany.com/misc/ar1999.pdf · Dato’ Ng Mann Cheong DSSA, SMP, JP AUDIT COMMITTEE MEMBERS Geh Cheng Hooi Chairman