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SINDORA BERHAD

(A Member of the Johor Corporation Group of Companies)

Company No. : 13418-K

L A P O R A N

T A H U N A N

1 9 9 9

A N N U A L

R E P O R T

FORGING AHEAD

the

Into

21st CENTURY KE 21

MERENTASI ABAD

Cover Rationale / Rasional Kulit The qualities of companies that remain in the new era demonstrates an ability to be flexible in the face of change. At Sindora Berhad, the fundamentals of skill, persistency and commitment are our leverage. Syarikat yang kekal di era baru harus fleksibel dalam menghadapi detik perubahan. Di Sindora Berhad asas kemahiran, ketekunan dan komitmen menjadi landasan utama.

SINDORA BERHAD

(A Member of the Johor Corporation Group of Companies) Company No. : 13418-K

Contents

Corporate Profile Notice of Annual General Meeting Corporate Information Board of Directors Audit Committee Management Team Corporate Structure Group Financial Summary Group Performance In Charts Statement to Shareholders Corporate Diary Financial Statements Share Performance Chart Shareholdings Statistics List of Group Landed Properties Proxy Form 2 4 6 7 8 10 11 12 13 14 27 29 53 54 56 · Profil Korporat Notis Mesyuarat Agung Tahunan Maklumat Korporat Lembaga Pengarah Jawatankuasa Audit Kumpulan Pengurusan Struktur Korporat Ringkasan Kewangan Kumpulan Prestasi Kumpulan Dalam Carta Laporan kepada Pemegang Saham Diari Korporat Carta Prestasi Saham Perangkaan Pemegang Saham Senarai Hartanah Kumpulan Borang Proksi 3 5 6 7 9 10 11 12 13 14 27 53 54 57 ·

Kandungan

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Sindora Berhad was incorporated in Malaysia on 30 December 1972 under the Companies Act, 1965. It was listed on the Main Board of the Kuala Lumpur Stock Exchange on 7 December 1995 with paid up capital of RM96 million. Today, after spanning over two decades, Sindora Berhad Group of Companies has successfully carved its name within the nation's timber sector.

CORPORATE

PROFILE

The Group's primary operations consist of several activities in logging, kiln drying, timber treatment, production of sawn timber, laminated wood products, mouldings, and furniture. Besides being engaged in the upstream and downstream of timber activities, the Group is also involved in oil palm and rubber plantation and palm oil processing. One of the Group strategic thrusts is to ensure longterm profitable growth. With a clearly defined business focus the Group is better positioned to meet the challenges and opportunities of the new millennium.

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L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

Sindora Berhad telah diperbadankan di bawah Akta Syarikat, 1965 pada 30 Disember 1972 di Malaysia. Ia disenaraikan di Papan Utama Bursa Saham Kuala Lumpur pada 7 Disember 1995 dengan modal berbayar RM96 juta. Berdasarkan pengalaman merentasi dua dekad lalu, Kumpulan Sindora Berhad kini berjaya mengukir nama di arena bisnes berasaskan kayu di negara ini. Tumpuan utama operasi merangkumi aktiviti teras seperti pembalakan, pengeringan kayu, pengawetan kayu, pengeluaran kayu bergergaji, produk kayu berlaminasi, kayu kumai, dan juga perabot. Selain menerokai industri huluan dan hiliran perkayuan, Kumpulan juga terlibat di dalam aktiviti perladangan kelapa sawit dan getah, serta pemprosesan minyak sawit. Salah satu teras utama Kumpulan ialah memastikan pertumbuhan keuntungan jangka panjang. Bersandarkan fokus bisnes yang jelas, Kumpulan berada di dalam posisi yang baik untuk menghadapi cabaran dan merebut peluang-peluang yang muncul di alaf baru.

KORPORAT

PROFIL

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NOTICE OF ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN THAT the Twenty Seventh (27th) Annual General Meeting of SINDORA BERHAD will be held at 14th Floor, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor on Monday, 22 May 2000 at 10.30 a.m. to transact the following business:As Ordinary Business: 1. To receive and adopt the Report and Audited Accounts for the year ended 31 December 1999 and the reports of the Directors and Auditors thereon. To approve the final dividend of 5% tax exempt in respect of the financial year ended 31 December 1999. To re-elect the following Director who retires in accordance with the Company's Articles of Association:i. 4. Puan Hasnah bte Ali (Article 88) Resolution 3

Resolution 1 Resolution 2

2. 3.

To consider, and if thought fit, to pass the following resolution pursuant to Section 129(6) of the Companies Act 1965: "That Tan Sri Datuk Arshad Ayub, who is over the age of seventy (70) years, be hereby re-appointed as Director of the Company to hold office until the next Annual General Meeting of the Company".

Notes: 1. A member entitles to attend and vote at this meeting is entitled to appoint a proxy and vote instead of him. A proxy may but need not be a member of the Company. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a corporation either under seal or in some other manner approved by its Board of Directors. Where a member appoints two proxies, the appointment shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. The instrument appointing a proxy must be deposited at the registered office of the Company, 13th Floor, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor not less than forty eight (48) hours before the time appointed for holding the meeting or any adjournment thereof.

Resolution 4 Resolution 5 Resolution 6

5. 6. 7.

To approve the payment of Directors' fees in respect of the financial year ended 31 December 1999. To re-appoint Messrs Ernst & Young as Auditors and to authorise the Directors to fix their remuneration. To transact any other business of which due notice shall have been given.

Subject to approval of Resolution 2 above, NOTICE IS ALSO HEREBY GIVEN THAT a final dividend of 5% tax exempt in respect of the financial year ended 31 December 1999 on the entitled issued ordinary share capital of the Company payable on 22 June 2000 to shareholders registered in the Register of Members of the Company with the Registrars, EPA Management Sdn Bhd, Ulu Tiram Estate, K.B. No. 705, 80990 Johor Bahru, Johor at the close of business at 5.00 p.m. on 26 May 2000. FURTHER NOTICE IS ALSO HEREBY GIVEN that a depositor shall qualify for entitlement only in respect of:a. b. Shares transferred into the depositor's securities accounts before 12.30 p.m. on 26 May 2000 in respect of ordinary transfers; Shares bought on the Kuala Lumpur Stock Exchange on a cum entitlement basis according to the Rules of the Kuala Lumpur Stock Exchange.

3.

By order of the Board

RODZIAN BIN LATIF, ACIS (MAICSA 7009978) AMRAN BIN ARSAT (LS 05460) Secretaries Johor Bahru 5 May 2000

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N o t i s

M e s y u a r a t

A g u n g

T a h u n a n

DENGAN INI DIBERITAHU BAHAWA Mesyuarat Agung Tahunan Sindora Berhad yang ke Dua Puluh Tujuh (27) akan diadakan di Tingkat 14, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor pada hari Isnin, 22 Mei 2000 pada jam 10.30 pagi bagi tujuan-tujuan berikut:Sebagai Urusan Biasa: 1. Menerima dan meluluskan Laporan dan Akaun Beraudit bagi tahun berakhir 31 Disember 1999 serta Laporan Pengarahpengarah dan Juruaudit berkaitan dengannya. Meluluskan dividen akhir sebanyak 5% yang dikecualikan cukai bagi tahun berakhir 31 Disember 1999. Melantik semula Pengarah berikut yang bersara mengikut Tataurusan Syarikat:i. 4. Puan Hasnah bte Ali (Artikel 88) Resolusi 3

Resolusi 1 Resolusi 2

2. 3.

Menimbang dan jika dianggap wajar, meluluskan resolusi berikut menurut Seksyen 129(6), Akta Syarikat 1965: "Melantik semula Tan Sri Datuk Arshad Ayub yang berusia melebihi tujuh puluh (70) tahun sebagai Pengarah Syarikat bagi tempoh sehingga Mesyuarat Agung Tahunan yang akan datang".

Nota: 1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini berhak melantik seorang proksi untuk menghadiri bagi pihak dirinya. Seorang proksi tidak semestinya seorang ahli Syarikat. 2. Suratcara perlantikan proksi hendaklah dibuat secara bertulis oleh pelantik atau wakil mutlak yang berkuasa atau jika pelantik adalah sebuah Perbadanan/Syarikat. Suratcara mestilah disempurnakan di bawah meteri Perbadanan / Syarikat atau di dalam bidang kuasa wakil mutlak. Apabila seorang Ahli melantik dua orang proksi, perlantikan tersebut tidak akan diterima sebagai sah melainkan setelah dinyatakan bilangan saham yang akan diwakili oleh proksi masing-masing. Suratcara perlantikan proksi hendaklah sampai di Pejabat Berdaftar Syarikat, Tingkat 13, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor tidak lewat dari empat puluh lapan (48) jam sebelum Mesyuarat ditetapkan atau sebarang mesyuarat penangguhannya.

Resolusi 4 Resolusi 5

5. 6.

Meluluskan pembayaran ganjaran kepada Pengarah-pengarah bagi tahun kewangan berakhir 31 Disember 1999. Melantik semula Tetuan Ernst & Young sebagai juruaudit dan memberi kuasa kepada Pengarah-pengarah untuk menetapkan bayaran mereka. Menjalankan sebarang urusan Syarikat yang lain di mana notis yang sewajarnya telah diberikan.

Resolusi 6

7.

Tertakluk ke kelulusan Resolusi 2 di atas, DENGAN INI DIBERITAHU BAHAWA dividen akhir sebanyak 5% yang dikecualikan cukai bagi tahun berakhir 31 Disember 1999 ke atas saham-saham biasa Syarikat yang berkelayakan akan dibayar pada 22 Jun 2000 kepada pemegang-pemegang saham berdaftar di Daftar Pemegang Saham Syarikat dengan Pendaftar Saham Syarikat, EPA Management Sdn Bhd, Ladang Ulu Tiram, K.B. No. 705, 80990 Johor Bahru, Johor pada penutupan urusniaga pada jam 5.00 petang pada 26 Mei 2000. DENGAN INI SELANJUTNYA DIBERITAHU BAHAWA pendeposit adalah berkelayakan untuk hak dividen hanya dalam keadaan-keadaan berikut:a. b. Saham-saham yang dipindah milik kepada akaun sekuriti pendeposit sebelum jam 12.30 tengahari pada 26 Mei 2000 berkaitan dengan pindah milik biasa; Saham-saham yang dibeli di Bursa Saham Kuala Lumpur yang berkelayakan berdasarkan pada peraturan asas yang ditetapkan oleh Bursa Saham Kuala Lumpur.

3.

Dengan perintah Lembaga Pengarah

RODZIAN BIN LATIF, ACIS (MAICSA 7009978) AMRAN BIN ARSAT (LS 05460) Setiausaha-setiausaha Johor Bahru 5 Mei 2000

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CORPORATE INFORMATION

M a k l u m a t K o r p o r a t

Board of Directors / Lembaga Pengarah Dato' Muhammad Ali bin Hashim

Chairman / Pengerusi Non-Executive / Bukan Eksekutif

Office and Factory Address / Alamat Pejabat dan Kilang Lot 1384, 45th Km Kluang-Kota Tinggi Bandar Tenggara 81000 Kulai, Johor, Telephone / Telefon Facsimile / Faksimili Highway Malaysia : 607-896 1285 : 607-896 1342

Hj. Abd. Razak bin Selamat

Managing Director / Pengarah Urusan

Tan Sri Datuk Arshad Ayub

Independent Non-Executive / Bebas, Bukan Eksekutif

Registrar / Pendaftar EPA Management Sdn Bhd Ulu Tiram Estate P. O. Box 705 80990 Johor Bahru, Malaysia Telephone / Telefon : 607-861 1611

Dato' Johari bin Mohamed

Non-Executive / Bukan Eksekutif

Hasnah bte Ali

Independent Non-Executive / Bebas, Bukan Eksekutif Principal Bankers / Bank-bank Utama Malayan Banking Berhad Bumiputra-Commerce Bank Berhad

Hj. Abd. Jalal bin Basimi

Non-Executive / Bukan Eksekutif

Auditors / Juruaudit Secretaries / Setiausaha-Setiausaha Rodzian bin Latif, MAICSA 7009978 Amran bin Arsat, LS 05460 Ernst & Young Public Accountants Suite 628, 6th Floor PanGlobal Plaza Jalan Wong Ah Fook 80000 Johor Bahru, Malaysia

Registered Office / Pejabat Berdaftar 13th Floor Menara Perbadanan Johor KOTARAYA 80000 Johor Bahru, Malaysia Telephone / Telefon : 607-223 2692 Facsimile / Faksimili : 607-223 3175

Audit Committee / Jawatankuasa Audit Chairman / Pengerusi Tan Sri Datuk Arshad Ayub ( Independent Non-Executive Director / Pengarah Bebas Bukan Eksekutif ) Members / Ahli Haji Abd. Razak bin Selamat (Managing Director / Pengarah Urusan) Hasnah bte Ali ( Independent Non-Executive Director / Pengarah Bebas Bukan Eksekutif )

Postal Address / Alamat Pos P. O. Box 103 80710 Johor Bahru Johor, Malaysia

Stock Exchange Listing / Penyenaraian Bursa Saham The Main Board of the Kuala Lumpur Stock Exchange / Papan Utama Bursa Saham Kuala Lumpur

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BOARD OF DIRECTORS

Lembaga Pengarah

Seated from Left to Right / Duduk dari Kiri ke Kanan:

Hj. Abd. Razak bin Selamat Dato' Muhammad Ali bin Hashim ­ Chairman / Pengerusi Tan Sri Datuk Arshad Ayub

Standing from Left to Right / Berdiri dari Kiri ke Kanan:

Hj. Abd. Jalal bin Basimi Rodzian bin Latif ­ Secretary / Setiausaha Dato' Johari bin Mohamed Amran bin Arsat ­ Secretary / Setiausaha Hasnah bte Ali

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AUDIT COMMITTEE

Composition The Board shall elect an Audit Committee, comprising not fewer than three members of whom the majority are not from among the executive directors of the Company. The Chairman of the Committee shall be appointed by the Board.

Constitution The Audit Committee was established on 2 May 1995 to act as a Committee of the Board of Directors.

Composition of Members Chairman Tan Sri Datuk Arshad Ayub ­ Independent Non-Executive Director Members Hj. Abd. Razak bin Selamat ­ Managing Director Hasnah bte Ali ­ Independent Non-Executive Director

The Company secretary shall be the secretary of the Committee.

Authority The Committee is authorised by the Board:a. To initiate the investigation of any activity within its terms of reference and to seek any information it requires from any employee and all employees are directed to cooperate with any request made by the Committee. 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.

b.

Functions The Committee shall review, appraise and report to the Board on:a. The appointment of the external auditors, the audit fees, any questions of registration or dismissal. The quality and effectiveness of the entire accounting and internal control system. The adequacy of the audit effort by both the external and internal auditors. The adequacy of the disclosures of information essential to a true and fair presentation of the financial affairs of the Group. Any material discoveries or adjustments made by the external or internal auditors. The effects of any changes in accounting policies and practices, and its compliance with stock exchange and legal requirements.

Objectives The objectives of the Audit Committee are:a. To comply with Section 15A and 344A of the Kuala Lumpur Stock Exchange Listing Requirements. To ensure that the results of internal and external audit findings are brought up to the highest level for consideration without detailed involvement of the full Board of Directors.

b.

b.

c.

d.

e.

f.

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J a w a t a n k u a s a

A u d i t

Komposisi Lembaga akan melantik satu Jawatankuasa Audit, merangkumi tidak kurang dari tiga orang ahli yang mana bilangan majoriti bukan dari kalangan pengarah-pengarah eksekutif Syarikat. Pengerusi Jawatankuasa akan dilantik oleh Lembaga Pengarah.

Perlembagaan Jawatankuasa Audit telah ditubuhkan

Setiausaha Syarikat akan bertindak sebagai setiausaha kepada Jawatankuasa.

Kuasa

pada 2 Mei 1995 untuk bertindak sebagai sebuah Jawatankuasa bagi Lembaga Pengarah.

Keahlian Pengerusi Tan Sri Datuk Arshad Ayub ­ Pengarah Bebas Bukan Eksekutif Ahli-Ahli Hj. Abd. Razak bin Selamat ­ Pengarah Urusan Hasnah bte Ali ­ Pengarah Bebas Bukan Eksekutif

Jawatankuasa diberi kuasa oleh Lembaga Pengarah:a. Untuk menyiasat apa jua kegiatan menurut bidang kuasanya dan memperolehi maklumat yang diperlukan dari mana-mana pekerja dan mereka ini diarah untuk berkerjasama sepenuhnya dengan Jawatankuasa. Untuk memperolehi khidmat guaman luar, nasihat profesional persendirian dan mendapatkan khidmat orang awam yang mempunyai pengalaman dan kepakaran yang berkaitan.

b.

Fungsi Jawatankuasa akan mengkaji, menilai dan melaporkan kepada Lembaga:a. Perlantikan juruaudit luaran, ganjaran audit, sebarang soalan mengenai pendaftaran dan pemberhentian kerja. Kualiti dan keberkesanan keseluruhan sistem perakaunan dan kawalan dalaman. Usaha audit yang menyeluruh oleh kedua-dua juruaudit luaran dan dalaman. Pendedahan maklumat penting yang mencukupi dalam penyampaian hal ehwal kewangan Kumpulan yang benar dan saksama. Sebarang penemuan atau penyelarasan penting yang dibuat oleh juruaudit luaran dan dalaman. Kesan dari sebarang perubahan polisi dan amalan perakaunan serta pematuhannya menurut keperluan bursa saham dan perundangan.

Matlamat Matlamat Jawatankuasa Audit adalah:a. Untuk mematuhi Seksyen 15A dan 344A sebagai Syarat-syarat Penyenaraian di Bursa Saham Kuala Lumpur. Untuk memastikan segala keputusan audit dalaman dan luaran diketengahkan ke tahap yang tertinggi untuk dipertimbangkan tanpa melibatkan kehadiran Lembaga Pengarah secara penuh.

b.

c. b.

d.

e.

f.

MANAGEMENT TEAM

Kumpulan Pengurusan

1. Hj. Abd. Razak bin Selamat

Managing Director / Pengarah Urusan 10 5 8 7 2 6 4 9 3 1

2.

Lukman bin Hj. Abu Bakar

General Manager / Pengurus Besar

3.

Ab. Rashid bin Haji Bukhairah

Senior Manager ­ Management Information Technology / Pengurus Kanan ­ Pengurusan Teknologi Maklumat

4.

Abu Bakar bin Mohd Awi

Senior Manager ­ Operations / Pengurus Kanan ­ Operasi

5.

Zainal Abidin bin Shamsuddin

Manager ­ Human Resource and Administration / Pengurus ­ Tenaga Insan dan Pentadbiran

6.

Suhati bin Kaban

Manager ­ Internal Audit / Pengurus ­ Audit Dalam

7.

Khairuddin bin Salleho

Operation Manager ­ Furniture Production / Pengurus Operasi ­ Pengeluaran Perabot

8.

Mohammad Razin bin Mohamat Noor

Manager ­ Business Development and Investment / Pengurus ­ Pembangunan Bisnes dan Pelaburan

9.

Ahmad Fisal bin Daud

Manager ­ Training and Quality / Pengurus ­ Latihan dan Kualiti

10.

Rosnah bte Basok

Acting Manager ­ Finance / Pemangku Pengurus ­ Kewangan

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CORPORATE STRUCTURE

S t r u k t u r K o r p o r a t

Logging, sawmilling, tropical timber treatment, oil palm and rubber plantation, palm oil processing and portfolio investment. Pembalakan, penggergajian kayu, pengawetan kayu tropika, perladangan kelapa sawit dan getah, pemprosesan minyak sawit serta pelaburan portfolio.

Sindora Furniture Sdn Bhd

(196092-K)

100%

Production of furniture and furniture components Pengeluaran perabot dan komponen perabot 100% Sindora Development Sdn Bhd

(91292-W)

Sindora Wood Products Sdn Bhd

(64789-V)

Production of mouldings, laminated timber products, rubberwood treatment and kiln drying Pengeluaran kayu kumai, produk kayu berlaminasi, pengawetan kayu getah dan pengeringan kayu Sindora Timber Products Sdn Bhd

(132848-D)

100%

Logging Pembalakan 100% Sindora Trading Sdn Bhd

(189260-V)

Production of laminated timber scantlings Pengeluaran beruti lapis

100%

Marketing of timber and wood based products Pemasaran kayu dan produk berasaskan kayu

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GROUP FINANCIAL SUMMARY

R i n g k a s a n

Description / Diskripsi

a K e w a n g a n

K u m p u l a n

1999 RM'000 Turnover / Perolehan Profit Before Tax / Keuntungan Sebelum Cukai Profit After Tax / Keuntungan Selepas Cukai Profit Available For Appropriation / Keuntungan Yang Boleh Diagih Retained Profit Carried Forward / Keuntungan Terkumpul Dibawa Ke Hadapan Fixed Assets / Aset Tetap Current Assets / Aset Semasa Investment / Pelaburan Estate Development Expenditure / Perbelanjaan Pembangunan Ladang Total Assets / Jumlah Aset 231,246 141,497 60,172 3,652 25,925 63,269 74,087 23,240 23,478 74,981

1998 RM'000 71,208 23,410 14,144 61,871

1997 RM'000 59,806 15,833 10,265 51,183

1996 RM'000 64,282 18,289 11,873 44,278

1995 RM'000 50,683 16,814 12,936 40,765

51,503

47,727

40,918

32,405

143,403 54,610 3,637 25,477

128,633 48,175 13,416 24,877

128,610 52,300 13,685 24,572

131,146 44,152 623 24,218

227,127

215,101

219,167

200,139

Current Liabilities / Tanggungan Semasa Net Current Assets / Aset Semasa Bersih Share Capital / Modal Saham Reserves / Rizab Shareholders' Funds / Dana Pemegang Saham

14,182 45,990 96,000 120,022 216,022

22,696 31,914 96,000 108,256 204,256

14,104 27,601 96,000 104,480 200,480

24,699 30,126 96,000 97,671 193,671

14,026 11,851 96,000 89,316 185,316

Gross Profit Margin (%) / Margin Keuntungan Kasar (%) Earnings Per Share (sen) / Pendapatan Sesaham (sen) Net Tangible Assets Per Share (sen) / Aset Ketara Bersih Sesaham (sen) Dividend Per Share (sen) / Dividen Sesaham (sen)

31

33

27

29

33

24 226

15 213

11 209

12 203

20 194

12

11

4

4

9

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GROUP PERFORMANCE IN CHARTS

P r e s t a s i K u m p u l a n D a l a m C a r t a

Turnover Perolehan

(RM '000)

Profit Before Tax Keuntungan Sebelum Cukai

(RM '000)

Net Tangible Assets Per Share Aset Ketara Bersih Sesaham

(SEN)

80

24

232

23,410

74,087

23,240

71,208

59,806

16,814

18,289

60

64,282

18

174

40

50,683

50

15,833

15

145

12

116

30

9

87

20

6

58

10

3

29

0

1995

1996

1997

1998

1999

0

1995

1996

1997

1998

1999

0

1995

194

1996

203

70

21

203

1997

209

1998

213

1999

Total Assets Jumlah Aset

(RM '000)

Shareholders' Funds Dana Pemegang Saham

(RM '000)

Earnings Per Share Pendapatan Sesaham

(SEN)

219,167

227,127

231,246

215,101

210

210

216,022

21

200,480

204,256

200,139

12

120

120

12

90

90

9

60

60

6

30

30

3

0

1995

1996

1997

1998

1999

0

1995

1996

1997

1998

1999

0

1995

1996

1997

11

1998

15

150

150

185,316

180

180

193,671

18

15

20

1999

24

240

240

24

226

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On behalf of the Board of Directors, we are pleased to present the Annual Report and Accounts of Sindora Berhad (the Company) and Sindora Berhad Group (the Group) for the financial year ended 31 December 1999.

STATEMENT TO SHAREHOLDERS

Laporan Kepada Pemegang Saham

Bagi pihak Lembaga Pengarah Sindora Berhad dengan sukacitanya kami membentangkan Laporan Tahunan dan Akaun Sindora Berhad (Syarikat) dan Syarikat-syarikat di bawah Kumpulannya (Kumpulan) bagi tahun kewangan yang berakhir 31 Disember 1999.

Financial Results For the financial year ended 31 December 1999, the Group recorded a turnover of RM74.09 million, an increase of 4.1 percent compared to RM71.21 million achieved in 1998. However, the Group pre-tax profit for 1999, marginally decreased by 0.73 percent to RM23.24 million as compared to RM23.41 million recorded in 1998. The major contributors were the oil palm plantation and the palm oil processing sectors. The turnover of the Company registered an increase of 7.78 percent to RM63.48 million as compared to RM58.89 million in 1998. Pre-tax profit, had correspondingly increased by 12.13 percent to RM24.34 million as compared to RM21.71 million for 1998. The strong performance had strengthened the earnings per share of the Group from 15 sen in 1998 to 24 sen in 1999. The shareholders' fund had increased 5.76 percent to RM216.02 million as compared to RM204.26 million recorded in 1998.

2 1

1. Dato' Muhammad Ali bin Hashim ­ Chairman / Pengerusi 2. Hj. Abd. Razak bin Selamat ­ Managing Director / Pengarah Urusan

Prestasi Kewangan Bagi tahun kewangan berakhir 31 Disember 1999 Kumpulan telah mencatatkan perolehan sebanyak RM74.09 juta meningkat sebanyak 4.1 peratus berbanding RM71.21 juta pada tahun 1998. Walau bagaimanapun, keuntungan sebelum cukai Kumpulan bagi tahun 1999 telah merosot secara marginal kepada RM23.24 juta iaitu pada kadar 0.73 peratus berbanding RM23.41 juta yang dicatatkan pada tahun 1998. Sumbangan tertinggi adalah dari sektor perladangan kelapa sawit dan pemprosesan minyak sawit. Perolehan Syarikat pula telah mencatatkan peningkatan sebanyak 7.78 peratus kepada RM63.48 juta berbanding RM58.89 juta pada tahun 1998. Keuntungan sebelum cukai pula mencatatkan peningkatan sebanyak 12.13 peratus kepada RM24.34 juta berbanding RM21.71 juta pada tahun 1998. Prestasi yang memberangsangkan ini telah mengukuhkan pendapatan sesaham Kumpulan daripada 15 sen pada tahun 1998 kepada 24 sen pada tahun 1999. Dana pemegang saham Kumpulan juga telah meningkat kepada 5.76 peratus kepada RM216.02 juta berbanding RM204.26 juta yang direkodkan pada tahun 1998.

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Malaysian Economic Performance On the whole, the economic performance of Malaysia had shown improvement based on the positive growth of the Gross Domestic Product (GDP). Among the essential domestic factors which influenced the economic turnaround were the implementation of the selective capital controls, the announcement of Malaysian Year 2000 Budget, the outcome of the tenth General Election, the encouraging financial results among corporations in the private sector, the reinstatement of Malaysia to the Morgan Stanley Capital International Index and the overall improvement of the various economic indices. Several economic indicators had shown positive growth coupled with the confidence amongst the foreign and local investors in the domestic market. The GDP for the fourth quarter showed a growth of 10.6 percent as compared to 8.1 percent for the third quarter, which indicated that the national economy was well on track in line with the recovery efforts made by the Malaysian Government. The Malaysian economy chalked up a 5.4 percent growth in 1999.

Turnover Perolehan

(RM '000)

80

40

30

20

10

0

1995

50,683

50

1996

1997

59,806

60

64,282

1998

71,208

70

1999

Perkembangan Ekonomi Malaysia Secara keseluruhannya ekonomi negara telah menunjukkan peningkatan yang baik berasaskan pertumbuhan positif Keluaran Dalam Negara Kasar (KDNK). Di antara faktor penting di dalam negara yang mempengaruhi pemulihan ekonomi ialah pelaksanaan kawalan modal berpilih, pembentangan belanjawan Malaysia tahun 2000, keputusan pilihanraya umum kali ke 10, keputusan kewangan syarikat-syarikat dalam sektor swasta yang menggalakkan, penyenaraian semula Malaysia ke dalam Indeks Morgan Stanley Capital International (MSCI) dan pengumuman petunjukpetunjuk ekonomi yang semakin baik. Petunjuk-petunjuk ekonomi juga telah menunjukkan pertumbuhan yang positif di samping peningkatan keyakinan pelabur asing serta tempatan terhadap pasaran tempatan. Keluaran Dalam Negara Kasar (KDNK) untuk suku tahun keempat menunjukkan pertumbuhan sebanyak 10.6 peratus berbanding 8.1 peratus yang dicatatkan suku tahun ketiga yang mana ini membuktikan ekonomi negara berada pada landasan yang baik sejajar dengan usaha-usaha pemulihan yang giat dijalankan oleh Kerajaan Malaysia. Ekonomi Malaysia bertumbuh pada kadar 5.4 peratus pada tahun 1999.

View of corporate office at the Sindora Timber Complex. Pejabat utama Kompleks Perkayuan Sindora.

74,087

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Sindora's interests are based on the presence in the integrated wood based industry from upstream sustainable forest management to downstream manufacturing. Kepentingan Sindora dalam industri berasaskan pengurusan kayu bermula dari hutan berkekalan

sehingga pemprosesan hiliran.

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PRESTASI INDUSTRI Industri Perkayuan Pasaran kayu tropika tergugat pada separuh tahun pertama 1998. Walau bagaimanapun, terdapat tanda pemulihan menjelang pertengahan 1999. Pengeluaran produk kayu tropika pemprosesan kedua juga meningkat kesan dari permintaan yang menggalakkan di Amerika Syarikat dan Eropah. Malaysia berjaya mengukuhkan kedudukan semasa krisis melalui penekanan dalam pengeluaran produk hiliran bernilai ditambah. Antara contoh yang nyata adalah industri perabot yang mengalami pertumbuhan yang memberangsangkan. Prestasi industri perkayuan juga didorong oleh langkah yang diambil oleh syarikat di dalam mengekalkan daya saing dalam pasaran. Pengeluar juga telah mengambil langkah berhati-hati seperti mengekalkan paras stok yang rendah di samping mengenalpasti pasaran baru bagi produk yang dihasilkan. Kebanyakan syarikat melaksanakan penstrukturan bagi mengurangkan pinjaman untuk memperkukuhkan kedudukan dalam pasaran.

Measuring moulding profile according to customer specifications. Mengukur profil kayu kumai menurut spesifikasi pembeli.

INDUSTRIAL PERFORMANCE Timber Industry The tropical timber market was sluggish in the first half of 1998. However, there were signs of recovery towards mid-1999. The production of secondary tropical timber products had also increased as a result of encouraging demand in the United States and Europe. Malaysia had succeeded in strengthening its position during the financial crisis by increasing the production of value-added downstream products. A clear example is the furniture industry, which experienced a steady growth. The performance of timber industry was further improved by the measures taken by companies to remain competitive in the market. The producers remained cautious and various steps were taken such as maintaining lower stock levels and looking for new markets of their products. Many companies were also restructured in order to reduce gearing and to strengthen their position in the market.

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L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

Process of finishing. Proses kemasiapan.

Palm Oil Industry The Malaysian Palm Oil Industry attained a satisfactory performance in 1999. Earnings from the export market were lower due to unfavourable Malaysian price situation in 1999 compared to 1998. However, palm oil production surpassed 1998 levels to reach 10.55 million metric tonnes, to take advantage of the surge in demand. Malaysia emerged as the largest palm oil producer, capturing 50 percent of the world market share. Export earnings from palm oil, palm kernel oil, palm kernel cake and other related products declined by 21.7 percent from RM22.6 billion in 1998 to RM17.7 billion in 1999. Palm oil was the major contributor and recorded RM14.1 billion or 79.7 percent of the total palm oil related products export earnings. The national production of crude palm oil in 1999 increased by 26.9 percent to 10.55 million metric tonnes from 8.3 million metric tonnes in 1998. In line with this increase, the production of palm kernel oil rose by 21.8 percent to 1.34 million metric tonnes, compared to 1.1 million metric tonnes in 1998. The export of palm oil experienced an increase of 18.9 percent to 8.8 million metric tonnes as compared to 7.4 million metric tonnes recorded in 1998. Strong performance in the export sector was supported by a steady supply as well as competitive prices. India was the main importer followed by the European Union, China and Egypt. The average price of palm oil products in the domestic market stabilised after subsequent pegging of the Ringgit vis-a-vis the US Dollar. Price per metric tonne fluctuated between RM1,499 to RM2,377 as a result of the restoration in the palm oil production, re-emergence of Indonesia in the world palm oil export market as well as the surplus in production of soya oil in Brazil and Argentina. Industri Minyak Sawit Industri minyak sawit Malaysia mencatatkan prestasi yang memuaskan pada tahun 1999. Pendapatan eksport mencatatkan pencapaian yang berkurangan susulan dari pencapaian harga yang kurang memberangsangkan pada tahun 1999 berbanding tahun 1998. Walau bagaimanapun, pengeluaran minyak sawit Malaysia mengatasi tahun 1998 dan merekodkan 10.55 juta tan metrik dan sekaligus memenuhi permintaan yang meningkat. Malaysia muncul pengeluar utama minyak sawit dengan menguasai 50 peratus dari pasaran minyak sawit dunia. Pendapatan eksport minyak sawit, minyak isirung, kek isirung dan lain-lain produk berkaitan merosot 21.7 peratus dari RM22.6 bilion pada tahun 1998 kepada RM17.7 bilion pada tahun 1999. Pengeluaran minyak sawit mentah Malaysia pada tahun 1999 meningkat 26.9 peratus kepada 10.55 juta tan metrik dari 8.3 juta tan metrik pada tahun 1998. Selaras dengan ini, pengeluaran minyak isirung meningkat 21.8 peratus kepada 1.34 juta tan, dari 1.1 juta tan pada tahun 1998. Eksport minyak sawit menikmati peningkatan sebanyak 18.9 peratus kepada 8.8 juta tan metrik berbanding 7.4 juta tan metrik yang dicatatkan pada 1998. Prestasi eksport yang kukuh didorong oleh bekalan yang stabil di samping harga yang kompetitif. Berdasarkan prestasi pasaran, India muncul pengimport utama disusuli oleh Kesatuan Eropah, China dan Mesir. Purata harga produk minyak sawit di pasaran domestik stabil setelah pelaksanaan kawalan Ringgit berbanding Dolar Amerika. Harga se tan metrik berlegar di sekitar RM1,499 sehingga RM2,377, susulan dari pemulihan pengeluaran minyak sawit, kemunculan Indonesia di pasaran eksport minyak sawit dunia dan lebihan pengeluaran minyak soya di Brazil dan Argentina.

Furniture components are stained before sealing and lacquering process. Pewarnaan komponen perabot sebelum proses penutupan dan penyemburan lakuer.

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OPERATIONS REVIEW Timber Sector In line with the efforts towards realising the Corporate Vision, the Group had continuously strengthened its core activities in the timber sector, whilst increasing the contributions from the plantation operations. The Group had explored every available opportunity to develop and expand the existing timber business so as to maintain the creditable performance achieved so far. For the year 1999, the Company was granted a timber concession area in Kluang, Johor by the Johor State Government, which would be logged within the next four years. This concession would fulfill the requirement of raw materials for the downstream operations of the Group. The logging operations began in October 1999 based on Sustainable Management System in accordance with the Malaysian Criteria and Indicators (MC&I). In line with the recovery in Malaysian economy, the Group had however recorded an encouraging increase in the sales of products from its downstream activities. The Group export sales of furniture registered an increase of 7.7 percent to RM6.03 million as compared to RM5.6 million in 1998. In order to meet increasing demand and capture greater market share, the Group plans to expand its operations and diversify its products. Several furniture products that are expected to contribute to the increase in the turnover are buffet and hutch, headboard and footboard for beds and futon bed.

Mouldings from tropical solid wood. Kayu kumai daripada kayu padu tropika.

TINJAUAN OPERASI Sektor Perkayuan Sejajar dengan usaha untuk merealisasikan Wawasan Korporat, Kumpulan secara berterusan telah mengukuhkan aktiviti teras dalam bidang perkayuan di samping meningkatkan sumbangan dari operasi perladangan. Kumpulan telah menerokai segala peluang yang ada untuk memaju serta memperkembangkan bisnes perkayuan sedia ada sebagai usaha mengekalkan prestasi yang baik yang dicatatkan sebelum ini. Bagi tahun 1999 Kerajaan Negeri Johor telah mengurniakan konsesi hutan di Kluang, Johor yang akan diusahakan selama 4 tahun. Pengurniaan hutan ini akan dapat membantu pembekalan bahan mentah untuk kegunaan operasi hiliran Kumpulan. Konsesi hutan ini telah mula diusahakan sejak Oktober 1999 dan dilaksanakan berasaskan kepada sistem pengurusan hutan berkekalan mengikut Kriteria dan Petunjuk Malaysia (MC&I). Di dalam keadaan ekonomi Malaysia yang masih mengalami proses pemulihan, Kumpulan bagaimanapun telah mencatatkan peningkatan jualan yang memberangsangkan bagi aktiviti hilirannya. Kumpulan telah menikmati peningkatan 7.7 peratus dalam jualan eksport perabotnya kepada RM6.03 juta berbanding RM5.6 juta tahun 1998. Bagi memenuhi peningkatan

The bulk of the furniture produced by the Group is for export market. Pasaran utama perabot yang dikeluarkan oleh Kumpulan adalah untuk eksport.

In the year under review, the timber operations had recorded a turnover of RM12.58 million and the major contribution was from the downstream activities of the Group.

Manuring activity at Ladang Sindora. Aktiviti pembajaan di Ladang Sindora.

Plantation Sector Oil palm plantation business recorded an encouraging return in 1999 with the production of 132,657 metric tonnes of fresh fruit bunches (FFB), an increase of 6.1 percent as compared to 125,039 metric tonnes harvested in 1998. However, the fall in the prices of the crude palm oil (CPO) affected the turnover and the profits of the plantation sector. Total turnover of the plantation sector and the palm oil processing for 1999 was RM61.51 million with a pre-tax profit of RM29.25 million. During the year under review, a total of 357.91 hectares were replanted with oil palm out of the total hectarage of 1,991. Replanting was at Ladang Sungai Simpang Kiri which was first planted in 1975. The replanting program would have no adverse effect on the profitability of the Group due to the increase in matured areas at Ladang Sindora and Ladang Sungai Simpang Kiri. permintaan perabot dan meningkatkan penguasaan pasaran, Kumpulan telah merancangkan pelan pengembangan operasi dan pempelbagaian produk. Di antara produk yang dijangka mampu menyumbang ke arah peningkatan perolehan perabot termasuklah `buffet & hutch', `headboard & footboard' dan `futon bed'. Sepanjang tahun kajian, operasi perkayuan telah mencatatkan perolehan sebanyak RM12.58 juta dan sebahagian besarnya adalah merupakan sumbangan ativiti hiliran Kumpulan.

Sektor Perladangan Bisnes perladangan kelapa sawit mencatatkan pulangan yang memberangsangkan pada tahun 1999 dengan pengeluaran buah tandan segar (BTS) mencapai 132,657 tan metrik meningkat 6.1 peratus berbanding 125,039 tan metrik tahun 1998. Walau bagaimanapun, kejatuhan harga minyak sawit mentah (MSM) pada tahun 1999 telah menjejaskan perolehan dan keuntungan sektor perladangan. Jumlah perolehan sektor perladangan dan pemprosesan minyak sawit bagi tahun 1999 adalah berjumlah RM61.51 juta dengan keuntungan sebelum cukai berjumlah RM29.25 juta. Bagi tempoh 1999 juga sejumlah 357.91 hektar dari keseluruhan 1,991 hektar Ladang Sungai Simpang Kiri yang ditanam pada tahun 1975 telah dilakukan penanaman semula kelapa sawit. Dengan peningkatan kawasan matang di Ladang Sindora dan Ladang Sungai Simpang Kiri adalah dijangka penanaman semula ini tidak akan menjejaskan keuntungan Kumpulan.

The Group ventured into oil palm plantations to strengthen its earning base. Penglibatan Kumpulan dalam perladangan kelapa sawit untuk mengukuhkan asas pendapatan.

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The Company's palm oil mill had shown a remarkable performance in 1999 eventhough it was only in its second year of operations. The production of CPO in 1999 was 33,226 metric tonnes and 10,317 metric tonnes of palm kernel. The extraction rate of CPO in 1999 was 19.24 percent while extraction rate of palm kernel was 5.98 percent. The mill posted an encouraging profit of RM11.01 million for 1999.

Commitment Towards Quality To ensure the competitiveness and the business continuity of the Group, the management had given serious emphasis in upgrading the quality of operations at all levels. The Group had embarked on an eightphase programme of Total Quality Management, which was launched in 1995. The Company had successfully organised Conventions on Control & Improvement (C&I) which were held weekly from 17 September to 5 November 1999. This convention which involved 11 operational units and 26 supporting units had achieved the targets in the improvement of quality and productivity.

Oil palm new planting area at Ladang Sungai Simpang Kiri. Kawasan penanaman baru kelapa sawit di Ladang Sungai Simpang Kiri.

Profit Before Tax Keuntungan Sebelum Cukai

(RM '000)

Kilang Kelapa Sawit Syarikat juga telah menunjukkan prestasi yang kukuh walaupun 1999 adalah merupakan tahun kedua operasinya. Pengeluaran MSM pada tahun 1999 adalah sebanyak 33,226 tan metrik sementara pengeluaran isirung sawit pula adalah berjumlah 10,317 tan metrik. Kadar perahan MSM bagi tahun 1999 pula adalah 19.24 peratus sementara kadar perahan isirung sawit adalah 5.98 peratus. Kilang Kelapa Sawit Sindora mencatatkan keuntungan berjumlah RM11.01 juta bagi tahun 1999.

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23,410

23,240

Komitmen ke Arah Kualiti Di dalam memastikan dayasaing dan kesinambungan bisnes Kumpulan, pihak pengurusan telah memberikan penekanan yang serius di dalam meningkatkan kualiti pengoperasian di semua peringkat. Kumpulan telah menjalani program 8 Fasa Pengurusan Kualiti Menyeluruh (TQM) yang dilancarkan sejak 1995. Syarikat juga telah berjaya menganjurkan Konvensyen C&I (Control & Improvement) yang diadakan secara mingguan pada 17 September ­ 5 November 1999 yang lalu. Konvensyen yang melibatkan 11 unit operasi dan 26 unit sokongan ini telah berjaya mencapai matlamat meningkatkan kualiti dan produktiviti.

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16,814

18,289

18

15

12

9

6

3

0

1995

1996

1997

15,833

1998

1999

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The Group is also involved in oil palm plantations and palm oil processing. Kumpulan juga menceburi aktiviti perladangan dan pengilangan kelapa sawit.

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In meeting with the challenges in the new millennium and to gain greater confidence amongst the clients, the Group had striven to obtain ISO 9002. As a start, the Finishing Unit (Sindora Furniture Sdn Bhd), the Treatment Plant and the Kiln Drying Unit (Sindora Wood Products Sdn Bhd) were chosen as the pioneer to be certified with the ISO 9002 accreditation. With this certification, it is hoped that business opportunities would be widened and confidence among the existing and new clients be further strengthened thus enabling the Group to exploit a bigger export market.

Human Resource Development Realising the importance of the contribution of every employee towards the continuity of the Company's business to face the challenges following the economic downturn, the management had continuously implemented a comprehensive and integrated human resource development programme. This is in line with the overall development of the Company. The human resource development programmes encompassed technical training, workshops, courses and seminars aimed at realising the Group's vision. A Round Table Conference involving every executive member of the Group was held at Sibu Island Resort, Johor. As part of the programme to strengthen the plantation sector and to enhance the welfare of the workers, the Group had planned to build additional 114 "Baktiladang" housing units, at Ladang Sindora. The "Baktiladang"

Bagi menghadapi cabaran alaf baru dan meningkatkan keyakinan pelanggan, Kumpulan telah mengorak langkah ke arah pelaksanaan sistem kualiti ISO 9002. Pada peringkat awal, Unit Kemasiapan (Sindora Furniture Sdn Bhd) dan Unit Pengawetan Kayu dan Tanor Pengeringan (Sindora Wood Products Sdn Bhd) telah dipilih sebagai perintis di dalam mendapatkan pengiktirafan ISO 9002 ini. Pensijilan ISO 9002 ini diharap dapat mewujudkan peluang bisnes di kalangan pelanggan baru dan sedia ada bagi meningkatkan pasaran eksport Kumpulan.

Pembangunan Sumber Manusia Menyedari peri pentingnya sumbangan anggota pekerja kepada kesinambungan bisnes Syarikat, sekalipun Syarikat menerima tekanan kesan dari kegawatan ekonomi, pihak pengurusan telah melaksanakan program pembangunan sumber manusia yang bersepadu dan menyeluruh seiring dengan pembangunan Syarikat. Program pembangunan manusia ini meliputi latihan teknikal, bengkel, kursus serta seminar bagi merealisasikan wawasan Kumpulan. Persidangan Meja Bulat yang melibatkan semua eksekutif Kumpulan juga telah diadakan di Sibu Island Resort, Johor. Dalam usaha untuk mengukuhkan sektor perladangan dan meningkatkan kebajikan pekerja di sektor tersebut, Kumpulan telah merancangkan pembinaan tambahan 114 unit perumahan Baktiladang di Ladang Sindora. Pelaksanaan Baktiladang yang bertujuan memberikan pemilikan rumah untuk pekerja, meningkatkan taraf hidup dan menjana penyertaan pekerja tempatan dalam sektor perladangan ini akan dilaksanakan secara berfasa mulai tahun 2001 hingga 2003. Sehingga kini seramai 159 buah keluarga telah menikmati faedah dari pelaksanaan skim perumahan ini.

The Group had striven to obtain ISO 9002 certification. Kumpulan mengorak langkah ke arah pencapaian ISO 9002.

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Dividen Pada tahun kewangan berakhir 31 Disember 1999, Syarikat telah membayar dividen interim 10 peratus selepas ditolak cukai pada 30 Disember 1999. Pengarah juga mencadangkan pembayaran dividen akhir sebanyak 5 peratus yang dikecualikan cukai bagi tahun kewangan berakhir 31 Disember 1999.

Challenging rapids at Sungai Sedim, Kedah. Cabaran berakit di Sungai Sedim, Kedah.

home ownership programme, is aimed towards providing home ownership for plantation workers and improving their standards of living, thus encouraging more Malaysians to work in estates. The construction will commence in phases beginning the year 2001 to year 2003. Currently, 159 families are enjoying the facilities provided under the scheme.

Prospek Aktiviti berasaskan perkayuan diyakini akan terus menjadi aktiviti utama kepada Kumpulan walaupun terdapat persaingan yang sengit dari negara pengeluar kayu tropika yang lain khususnya Indonesia dan pelaksanaan kawalan ekonomi yang semakin ketat seperti Pensijilan Kayu Tropika, Kawasan Dagangan Bebas ASEAN pada tahun 2002 (AFTA) dan lain-lain halangan perdagangan. Pemulihan sektor pembinaan juga telah mendorong pengukuhan industri perkayuan. Peningkatan harga kayu balak dan kayu gergaji khususnya bagi spesis popular seperti Cengal, Kapor, Meranti, Balau dan Keruing dijangka akan berterusan untuk beberapa jangkamasa yang akan datang. Permintaan produk kayu kumai dan kayu beruti berlapis dari negaranegara Eropah dan Asia Pasifik yang semakin meningkat sejak akhir-akhir ini juga dijangka akan dapat memperkukuhkan industri hiliran perkayuan. Pemulihan ekonomi Jepun juga dijangka akan dapat meningkatkan sumbangan industri hiliran perabot.

Dividends The Company had paid an interim dividend of 10 percent less tax for the current financial year ended 31 December 1999. The Directors recommend a final dividend of 5 percent tax exempt for the financial year ended 31 December 1999.

Prospects Timber based activities will continue to be the Group's core business despite the greater market competition among the producers of tropical timber, especially from Indonesia, stiffer economic controls in the form of the Tropical Timber Certification, the implementation of ASEAN Free Trade Area (AFTA) in the year 2002 and other trade barriers. The recovery in the construction industry had led to the strengthening of the timber industry. The increase in the prices of logs and sawn timber, especially among the popular species, Cengal, Kapor, Meranti, Balau and Keruing are expected to remain for some period of time. The recent increase in demand for mouldings and timber scantlings from European and Asia Pacific countries is expected to boost the downstream timber industry. Economic recovery in Japan is expected to contribute towards the growth in the furniture downstream industry.

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As for the palm oil industry, the market is expected to remain strong due to various strategies embarked by the Government in promoting higher sales of palm oil such as extending new credit facilities to importing countries. The Government will continue to promote palm oil to capture new markets aside from increasing the volume in the existing traditional markets. Furthermore, the world demand in year 2000 and China's additional import quota is expected to boost Malaysia's export. In the near future, Malaysia will still remain as the world's largest palm oil producer as a result of increase in newly matured-planted area and improved production yield.

Appreciation On behalf of the Board of Directors, we wish to record our condolence to the family of Allahyarham Tuan Haji Bahrudin Suparman, the Financial Controller of the Company who passed away on 5 February 2000. He had served the Company since 1 November 1989. We wish to record our appreciation for his services to the Group. We would like to record our appreciation to all members of the staff for their dedicated efforts and contributions during the year. We would also like to convey the Board's sincere appreciation to our shareholders, clients, business associates and the relevant authorities, for their continued support and confidence in Sindora Berhad Group.

Bagi industri minyak sawit pasaran dijangka terus kukuh susulan dari pelbagai strategi yang dilaksanakan Kerajaan untuk mempromosikan jualan minyak sawit seperti memperluaskan fasiliti kredit baru di kalangan negara pengimport. Kerajaan akan berterusan mempromosikan minyak sawit untuk mendapatkan pasaran baru selain meningkatkan jualan di pasaran tradisi sedia ada. Tambahan, permintaan dunia pada tahun 2000 dan kuota import tambahan China dijangka menjana eksport Malaysia. Di masa akan datang Malaysia mampu kekal sebagai pengeluar terbesar minyak sawit hasil dari pertambahan kawasan yang matang dan pengeluaran yang meningkat.

Penghargaan Lembaga Pengarah ingin merakamkan ucapan takziah kepada keluarga Allahyarham Tuan Haji Bahrudin Suparman, Pengawal Kewangan Kumpulan yang telah kembali ke Rahmatullah pada 5 Februari 2000. Beliau telah memulakan khidmat di Sindora Berhad pada 1 November 1989. Kami juga ingin merakamkan penghargaan di atas khidmat bakti beliau kepada Kumpulan. Bagi pihak Ahli Lembaga Pengarah juga, kami ingin merakamkan penghargaan kepada semua lapisan anggota pekerja di atas khidmat bakti yang penuh dedikasi dan sumbangan mereka sepanjang tahun. Kepada pemegang saham, klien, rakan bisnes dan pihak berkuasa yang berkaitan, kami juga ingin mengucapkan terima kasih yang tulus ikhlas atas sokongan yang berterusan dan keyakinan mereka kepada Kumpulan Sindora Berhad.

DATO' MUHAMMAD ALI BIN HASHIM Chairman / Pengerusi

HJ. ABD. RAZAK BIN SELAMAT Managing Director / Pengarah Urusan

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CORPORATE

Diari

DIARY

Korporat

20 ­ 21 May / Mei

1 July / Julai

2 ­ 7 March / Mac

14

20-21 11 1

14 January / Januari The Sindora Berhad Group annual employees meeting (Majlis Pedoman) is an avenue in encouraging discussion and recognition for workers achievement. Mesyuarat tahunan anggota pekerja Kumpulan Sindora Berhad (Majlis Pedoman) bagi menggalakkan permusyawarahan serta pengiktirafan kecemerlangan anggota pekerja.

20-21 May / Mei The Group participated in the National Economic Revitalisation Plan Exhibition in conjunction with the Malaysian Prime Minister's visit to Johor. Penyertaan Kumpulan dalam Pameran Pelan Pemulihan Ekonomi Negara sempena lawatan YAB Perdana Menteri Malaysia ke Johor.

2-7

11 June / Jun The 26th Annual General Meeting of Sindora Berhad at Menara Johor Corporation. Mesyuarat Agung Tahunan Sindora Berhad kali ke 26 bertempat di Menara Johor Corporation.

2-7 March / Mac The Group participated in the Malaysian International Furniture Fair 1999 at Putra World Trade Centre, Kuala Lumpur. Kumpulan menyertai Pameran Perabot Antarabangsa Malaysia 1999 di Pusat Dagangan Dunia Putra, Kuala Lumpur.

9-10

9-10 March / Mac In preparation towards achieving ISO 9002 certification, the Company organised a two-day training program on Business Process and Procedure Development. Syarikat menganjurkan program latihan selama dua hari bagi Pembangunan Prosedur dan Proses Bisnes sebagai persiapan ke arah pensijilan ISO 9002.

1 July / Julai Launching ceremony towards achieving ISO 9002 certification by Tn. Hj. Abd. Razak Selamat, Managing Director of Sindora Berhad for the finishing of knock-down furniture (Sindora Furniture Sdn Bhd) and kiln drying and rubberwood treatment (Sindora Wood Products Sdn Bhd). Majlis pelancaran ke arah pensijilan ISO 9002 dirasmikan oleh Pengarah Urusan Sindora Berhad, Tn. Hj. Abd. Razak Selamat bagi kemasiapan perabot (Sindora Furniture Sdn Bhd) dan pengeringan kayu dan pengawetan kayu getah (Sindora Wood Products Sdn Bhd).

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12 ­ 14 October / Oktober

15-17 August ­ Ogos / 6-8 September ­ September

24 ­ 27 November / November

14 15-17 / 6-8 19-17 12-14

15-17 August ­ Ogos / 6-8 September ­ September Round Table Conference for Senior Management and Executives of the Group was held at Sibu Island, Johor. Persidangan Meja Bulat bagi Pengurusan Kanan dan Eksekutif Kumpulan bertempat di Pulau Sibu, Johor.

14 October / Oktober Felling Demonstration in conjunction with a workshop on Extraction and Processing of Forest Residues and Small Dimension Logs organised by the Johor State Forestry Department and Danish Cooperation for Environment and Development (DANCED) at the Company's timber concession in Labis Forest Reserve, Kluang, Johor. Demonstrasi Tebangan Berarah sempena woksyop `Extraction and Processing of Forest Residues and Small Dimension Logs' anjuran Jabatan Perhutanan Negeri Johor bersama Danish Cooperation for Environment and Development (DANCED) di konsesi milik Syarikat di Hutan Simpan Labis, Kluang, Johor.

19 September ­ September / 17 October ­ Oktober The Group participated in the Annual Pasir Gudang Sports Carnival. Kumpulan menyertai temasya sukan tahunan, Karnival Sukan Pasir Gudang.

3

3 November / November A Mini Marathon was organised in conjunction with opening ceremony of Sindora Sports Carnival 1999. Bersempena majlis perasmian Karnival Sukan Sindora 1999, aktiviti Mini Marathon dianjurkan.

12-14 October / Oktober The Saga and Mimosa Pudica Group participated in the National QCC Convention 1999 in Kuala Lumpur. Kumpulan Saga dan Mimosa Pudica menyertai Konvensyen QCC Peringkat Kebangsaan 1999 di Kuala Lumpur.

24-27

24-27 November / November Sindora Furniture Sdn Bhd participated in the International Furniture Fair Tokyo 1999, Japan, under the Technical Assistance Program of ASEAN Promotion Centre. Sindora Furniture Sdn Bhd menyertai Pameran Perabot Antarabangsa Tokyo 1999, Jepun anjuran Program Bantuan Teknikal, Pusat Promosi ASEAN.

FINANCIAL

STATEMENTS

Contents

Directors' Report Statement by Directors Statutory Declaration Auditors' Report Balance Sheet Profit and Loss Accounts Consolidated Cash Flow Statement Notes to the Accounts 30 34 34 35 36 37 38 40

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DIRECTORS' REPORT

The Directors present their report together with the audited accounts of the Group and of the Company for the year ended 31 December 1999.

Principal Activities The principal activities of the Company are: a. b. c. d. e. timber logging; manufacturing and processing of sawn timber; cultivation of oil palm, timber and rubber and the processing and marketing of such produce and their related products; investment holding; and manufacturing and sales of doors.

The principal activities of the subsidiary companies are as disclosed in Note 3 to the accounts. There have been no significant changes in the nature of these activities during the year.

Results Group RM'000 Profit after taxation Retained profits brought forward Profits available for appropriation Dividends Retained profits carried forward 23,478 51,503 74,981 (11,712) 63,269 Company RM'000 24,586 54,776 79,362 (11,712) 67,650

There were no material transfers to or from reserves or provisions during the year other than those disclosed in the accounts. In the opinion of the Directors, the results of the operations of the Group and of the Company during the financial year have not been substantially affected by any item, transaction or event of a material and unusual nature.

Dividends Since the end of the previous financial year, the Company paid, in respect of the previous financial year, an interim dividend of 5% less tax amounting to RM3,456,000 and a final dividend of 5% less tax amounting to RM3,456,000 as proposed in the Directors' Report for that year. The Company also paid an interim dividend of 10% (1998 ­ 10%) less tax amounting to RM6,912,000 for the current financial year ended 31 December 1999. The Directors recommend a final dividend of 5% tax exempt amounting to RM4,800,000 for the financial year ended 31 December 1999.

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Directors The Directors in office since the date of the last report and at the date of this report are: Dato' Muhammad Ali bin Hashim Hj. Abd. Razak bin Selamat Tan Sri Datuk Arshad Ayub Dato' Johari bin Mohamed Hj. Abd. Jalal bin Basimi Hasnah bte Ali Lukman bin Hj. Abu Bakar Rodzian bin Latif ­ ­ Alternate to Dato' Johari bin Mohamed, resigned on 3.5.1999 Alternate to Dato' Muhammad Ali bin Hashim, resigned on 3.5.1999 ­ ­ Chairman Managing Director

The following Directors who held office at the end of the financial year had according to the registers required to be kept under Section 134 of the Companies Act, 1965, an interest in the shares of the Company and related corporations as stated below: Number of Ordinary Shares of RM1 each Balance at 1.1.1999 The Company Direct interest Dato' Muhammad Ali bin Hashim Hj. Abd. Razak bin Selamat Tan Sri Datuk Arshad Ayub Dato' Johari bin Mohamed Hj. Abd. Jalal bin Basimi Indirect interest Tan Sri Datuk Arshad Ayub KPJ Healthcare Berhad Direct interest Dato' Muhammad Ali bin Hashim Tan Sri Datuk Arshad Ayub Indirect interest Dato' Muhammad Ali bin Hashim Tan Sri Datuk Arshad Ayub Kulim (Malaysia) Berhad Direct interest Dato' Muhammad Ali bin Hashim Tan Sri Datuk Arshad Ayub Indirect interest Dato' Muhammad Ali bin Hashim Tan Sri Datuk Arshad Ayub 12,000 826,800 -- -- -- -- 12,000 826,800 154,000 356,400 -- -- -- (44,400) 154,000 312,000 1,000 188,000 -- -- -- -- 1,000 188,000 14,000 54,000 -- -- -- -- 14,000 54,000 384,000 -- -- 384,000 10,000 10,000 50,000 30,000 10,000 -- -- 75,000 -- -- -- -- -- -- -- 10,000 10,000 125,000 30,000 10,000 Bought During the year Sold Balance at 31.12.1999

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DIRECTORS' REPORT

Directors (Continued) Number of Ordinary Shares of RM1 each Balance at 1.1.1999 Damansara Realty Berhad Indirect interest Tan Sri Datuk Arshad Ayub Johor Land Berhad Direct interest Tan Sri Datuk Arshad Ayub Indirect interest Tan Sri Datuk Arshad Ayub 215,000 25,000 -- 240,000 38,000 -- -- 38,000 1,250,000 -- (250,000) 1,000,000 Bought During the year Sold Balance at 31.12.1999

Since the end of the previous year, no Director has received or become entitled to receive any benefits (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the Directors as shown in the accounts or the fixed salary of a full-time employee of the Company) by reason of a contract made by the Company or a related corporation with any Director or with a firm of which a Director is a member or with a company in which a Director has a substantial financial interest required to be disclosed by Section 169(8) of the Companies Act, 1965.

Other Statutory Information a. Before the profit and loss accounts and balance sheets of the Group and of the Company were made out, the Directors took reasonable steps: i. to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and ii. to ensure that any current assets which were unlikely to realise their book values as shown in the accounting records in the ordinary course of business have been written down to an amount which they might be expected so to realise. b. At the date of this report, the Directors are not aware of any circumstances which would render: i. the amount written off for bad debts or amount of provision for doubtful debts inadequate to any substantial extent; and ii. c. the values attributed to current assets in the accounts of the Group and of the Company misleading.

At the date of this report, the Directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

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L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

Other Statutory Information (Continued) d. At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or accounts of the Group and of the Company which would render any amount stated in the accounts and consolidated accounts misleading. e. As at the date of this report, there does not exist: i. any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which secures the liabilities of any other person; or ii. any contingent liability in respect of the Group or of the Company which has arisen since the end of the financial year. f. In the opinion of the Directors: i. no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet its obligations as and when they fall due; ii. no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group and of the Company for the financial year in which this report is made.

Auditors The auditors, Ernst & Young, have expressed their willingness to accept re-appointment as auditors.

On behalf of the Board,

DATO' MUHAMMAD ALI BIN HASHIM Director

HJ. ABD. RAZAK BIN SELAMAT Director

Johor Bahru Dated: 24 March 2000

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STATEMENT BY DIRECTORS

We, DATO' MUHAMMAD ALI BIN HASHIM and HJ. ABD. RAZAK BIN SELAMAT, being two of the Directors of SINDORA BERHAD, do hereby state that, in the opinion of the Directors, the accounts set out on pages 36 to 52 are drawn up in accordance with approved accounting standards so as to give a true and fair view of: i. the state of affairs of the Group and of the Company as at 31 December 1999 and of the results of the Group and of the Company for the year ended on that date; and ii. the cash flows of the Group for the year ended 31 December 1999.

On behalf of the Board,

DATO' MUHAMMAD ALI BIN HASHIM Director Johor Bahru Dated: 24 March 2000

HJ. ABD. RAZAK BIN SELAMAT Director

STATUTORY DECLARATION

I, HJ. ABD. RAZAK BIN SELAMAT, being the Director primarily responsible for the financial management of SINDORA BERHAD, do solemnly and sincerely declare that the accounts set out on pages 36 to 52 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 HJ. ABD. RAZAK BIN SELAMAT at Johor Bahru in the State of Johor Darul Ta'zim on 24 March 2000 ) ) ) HJ. ABD. RAZAK BIN SELAMAT

Before me,

HJ. DAUD BIN HAJI HASSAN Commissioner for Oaths

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L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

AUDITORS' REPORT

t o t h e M e m b e r s o f S i n d o r a B e r h a d

We have audited the accounts set out on pages 36 to 52. These accounts are the responsibility of the Company's Directors. Our responsibility is to express an opinion on these accounts based on our audit. We conducted our audit in accordance with approved standards of auditing in Malaysia. These standards require that we plan and perform the audit to obtain reasonable assurance that the accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and significant estimates made by Directors, as well as evaluating the overall accounts presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion: a. the accounts are properly drawn up in accordance with the provisions of the Companies Act, 1965 and 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 as at 31 December 1999 and of the results of the Group and of the Company and the cash flows of the Group for the year then ended; and ii. the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the accounts and consolidated accounts. b. the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiary companies have been properly kept in accordance with the provisions of the Act. We are satisfied that the accounts of the subsidiary companies that have been consolidated with the Company's accounts are in form and content, appropriate and proper for the purposes of the preparation of the consolidated accounts and we have received satisfactory information and explanations required by us for those purposes. The Auditors' Report on the accounts of the subsidiary companies were not subject to any qualification and did not include any comment required to be made under Section 174(3) of the Companies Act, 1965.

ERNST & YOUNG AF: 0039 Public Accountants

WUN MOW SANG 1821/12/00 (J) Partner

Johor Bahru Dated: 24 March 2000

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BALANCE SHEET

a s a t 3 1 D e c e m b e r 1 9 9 9

Group Note 1999 RM'000 FIXED ASSETS SUBSIDIARY COMPANIES ESTATE DEVELOPMENT EXPENDITURE INVESTMENT CURRENT ASSETS Stocks Debtors Related companies Cash and bank balances 6 7 8 9 8,211 2,585 16,070 33,306 60,172 CURRENT LIABILITIES Creditors Holding corporation Related companies Taxation Proposed dividend 10 8 8 6,170 3 1,317 1,892 4,800 14,182 NET CURRENT ASSETS 45,990 217,064 6,150 3 1,327 8,304 6,912 22,696 31,914 204,431 8,364 2,564 12,982 30,700 54,610 2 3 4 5 141,497 -- 25,925 3,652 1998 RM'000 143,403 -- 25,477 3,637

Company 1999 RM'000 137,083 23,042 25,925 3,652 1998 RM'000 138,307 21,619 25,477 3,637

2,709 1,580 15,720 26,354 46,363

1,553 1,282 12,550 26,215 41,600

5,511 3 1,317 1,892 4,800 13,523 32,840 222,542

5,390 3 1,327 8,207 6,912 21,839 19,761 208,801

SHARE CAPITAL RESERVES SHAREHOLDERS' FUND DEFERRED TAXATION

11 12

96,000 120,022 216,022

96,000 108,256 204,256 175 204,431

96,000 125,500 221,500 1,042 222,542

96,000 112,626 208,626 175 208,801

13

1,042 217,064

The notes on pages 40 to 52 form an integral part of these accounts.

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L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

PROFIT AND LOSS ACCOUNTS

f o r t h e y e a r e n d e d 3 1 D e c e m b e r 1 9 9 9

Group Note 1999 RM'000 Turnover 14 74,087 1998 RM'000 71,208

Company 1999 RM'000 63,481 1998 RM'000 58,887

Cost of sales

36,265

25,622

27,086

17,260

Profit before taxation Taxation Profit after taxation Retained profits brought forward Profits available for appropriation Dividends Retained profits carried forward

15 16

23,240 238 23,478 51,503 74,981

23,410 (9,266) 14,144 47,727 61,871 (10,368) 51,503

24,342 244 24,586 54,776 79,362 (11,712) 67,650

21,709 (9,110) 12,599 52,545 65,144 (10,368) 54,776

17

(11,712) 63,269

Earnings per share (sen)

18

24

15

The notes on pages 40 to 52 form an integral part of these accounts.

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CONSOLIDATED CASH FLOW STATEMENT

f o r t h e y e a r e n d e d 3 1 D e c e m b e r 1 9 9 9

1999 RM'000 Cash Flows from Operating Activities Net profit before taxation Adjustments for: Depreciation Gain on disposal of fixed assets (Gain)/Loss on disposal of investments Provision for diminution in value of investments Interest income Interest expense Operating profit before working capital changes Decrease in stocks Decrease in debtors Increase in amount owing by related companies Increase in creditors (Decrease)/Increase in amount owing to related companies Cash generated from operations Taxation paid Net cash generated from operating activities 23,240

1998 RM'000

23,410

5,890 (76) (46) 75 (1,400) 11 27,694 153 131 (3,088) 19 (10) 24,899 (5,460) 19,439

4,155 (2) 871 8,848 (2,569) 4 34,717 2,003 5,535 (4,177) 1,114 1,059 40,251 (6,628) 33,623

Cash Flows from Investing Activities Purchase of fixed assets Proceeds from sale of fixed assets Proceeds from disposal of investments Purchase of investments Estate development expenditure Interest income Net cash used in investing activities (3,986) 78 612 (654) (448) 1,400 (2,998) (18,946) 23 1,054 (995) (600) 2,569 (16,895)

Cash Flows from Financing Activities Dividend paid Interest paid Net cash used in financing activities (13,824) (11) (13,835) (6,912) (4) (6,916)

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1999 RM'000 Net increase in cash and cash equivalents Cash and cash equivalents brought forward Cash and cash equivalents carried forward 2,606 30,653 33,259

1998 RM'000 9,812 20,841 30,653

Cash and cash equivalents comprise: Fixed deposits Cash and bank balances

18 33,241 33,259

28,550 2,103 30,653

The notes on pages 40 to 52 form an integral part of these accounts.

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NOTES TO THE ACCOUNTS

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1.

D e c e m b e r

1 9 9 9

Significant Accounting Policies a. Basis of Accounting The accounts of the Group and of the Company have been prepared under the historical cost convention and comply with approved accounting standards issued by the Malaysian Accounting Standards Board. In the current financial year, the Group applied certain transitional provisions in International Accounting Standard 16 (Revised), Property, Plant and Equipment, by virtue of which a reporting enterprise which does not adopt a policy of revaluation is allowed to retain revalued amounts on the basis of their previous revaluations (subject to continuity in depreciation policy and the requirement to write an asset down to its recoverable amount). Accordingly, the valuations of these assets have not been updated and their carrying amounts are stated as deemed cost. b. Basis of Consolidation The consolidated accounts incorporate the accounts of the Company and its subsidiary companies made up to the end of the financial year. Intercompany transactions are eliminated on consolidation and the consolidated accounts reflect external transactions only. c. Fixed Assets and Depreciation Fixed assets are stated at cost or valuation less accumulated depreciation. Land of leasehold tenure with an unexpired period of fifty years or more is classified as long leasehold land and those with an unexpired period of less than fifty years are classified as short leasehold land. No amortisation is provided for freehold land and a piece of leasehold land of a subsidiary company. The non-amortisation has no material effect on the financial statements of the Group. Forest concession is amortised in direct proportion to the acreage extracted. Depreciation on other fixed assets is calculated on the straight line method to write off the cost or valuation of the assets over the estimated useful lives as follows: Long leasehold land Short leasehold land Buildings and structures Plant and machinery Motor vehicles Furniture, fittings and equipment Electrical installation No amortisation is provided for capital work-in-progress. Subsequent restoration costs, relating to an item of fixed asset that has been recognised are capitalised only if such costs improve the condition of the assets beyond its originally assessed standard of performance. All other subsequent expenditure are recognised as an expense in the year in which it is incurred. 83 ­ 92 years 46 years 5 ­ 50 years 5 ­ 20 years 3 ­ 10 years 3.3 ­ 12.5 years 3.18 ­ 12.5 years

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1.

Significant Accounting Policies (Continued) d. Investments i. Investments in subsidiary companies are stated at cost or at valuation by the Directors based on the net asset values of the subsidiary companies. ii. Quoted and unquoted investments are stated at cost less provision for diminution in value of the investments, where such diminution is considered by the Directors to be of a permanent nature.

e.

Estate Development Expenditure All expenditure incurred in the clearing of land for planting up to maturity are capitalised as estate development expenditure and are not amortised. Any cost incurred after maturity in replanting or maintenance is charged to the profit and loss account in the year of incurrence. Stocks Stocks are valued at the lower of cost and net realisable value. Cost is determined principally on the average method. For logs and sawn timber, cost includes direct labour and appropriate production overheads. For completed houses, cost is mainly determined on specific identification basis and includes land, cost of construction and the appropriate development overheads.

f.

g.

Deferred Taxation Deferred taxation is provided for on material timing differences using the liability method except where it can be demonstrated with reasonable probability that the tax deferrals will continue in the foreseeable future. Foreign Currencies Foreign currency transactions are recorded in Ringgit Malaysia at rates of exchange ruling at the transaction dates and where settlements have not taken place at 31 December, at the approximate rates ruling at that date. All profits and losses on exchange are dealt with through the profit and loss account.

h.

i.

Income Recognition i. Property development Income from sales of houses and other development is recognised on percentage of completion of projects. ii. Investment income Dividend income from investment in subsidiary companies is accounted for on the accrual basis. Income from other investments is accounted for on the receipt basis. Interest income Interest income is recognised on the accruals basis.

iii.

j.

Bad and Doubtful Debts Known bad debts are written off and specific provisions are made for all debts which are considered doubtful. Cash and Cash Equivalents Cash and cash equivalents include cash balance (net of bank overdraft) and deposits that are readily convertible to cash and are subject to insignificant risk of change in value.

k.

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NOTES TO THE ACCOUNTS

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2.

D e c e m b e r

Fixed Assets

1 9 9 9

Land and Group Buildings RM'000 Cost At beginning of the year Additions Reclassification Disposals At end of the year 131,923 1,142 191 (27) 133,229

Plant and Machinery RM'000

Other Assets RM'000 Total RM'000

27,731 1,575 463 (8) 29,761

12,314 1,269 (654) (288) 12,641

171,968 3,986 -- (323) 175,631

Accumulated Depreciation At beginning of the year Charge for the year Reclassification Disposals At end of the year 7,978 3,068 (45) (27) 10,974 11,674 1,853 47 (8) 13,566 8,913 969 (2) (286) 9,594 28,565 5,890 -- (321) 34,134

Net Book Value At 31.12.1999 122,255 16,195 3,047 141,497

At 31.12.1998

123,945

16,057

3,401

143,403

Analysis of Cost and Valuation At 31.12.1999 At cost At deemed cost (or valuation) in 1995 44,616 88,613 133,229 29,761 -- 29,761 12,641 -- 12,641 87,018 88,613 175,631

At 31.12.1998 At cost At deemed cost (or valuation) in 1995 43,310 88,613 131,923 27,731 -- 27,731 12,314 -- 12,314 83,355 88,613 171,968

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2.

Fixed Assets (Continued) The net book value of land and buildings of the Group is analysed as follows: 1999 RM'000 Freehold land and buildings Leasehold land and buildings 1,912 120,343 122,255 1998 RM'000 1,927 122,018 123,945

Company Cost At beginning of the year Additions Reclassification Disposals At end of the year Accumulated Depreciation At beginning of the year Charge for the year Reclassification Disposals At end of the year Net Book Value At 31.12.1999

Land and Buildings RM'000 130,233 1,142 191 (27) 131,539

Plant and Machinery RM'000 19,088 1,565 463 (4) 21,112

Other Assets RM'000 11,113 1,228 (654) (284) 11,403

Total RM'000 160,434 3,935 -- (315) 164,054

7,539 2,940 (45) (27) 10,407

6,756 1,302 47 (4) 8,101

7,832 915 (2) (282) 8,463

22,127 5,157 -- (313) 26,971

121,132

13,011

2,940

137,083

At 31.12.1998 Analysis of Cost and Valuation: At 31.12.1999 At cost As deemed cost (or valuation) in 1995

122,694

12,332

3,281

138,307

43,825 87,714 131,539

21,112 -- 21,112

11,403 -- 11,403

76,340 87,714 164,054

At 31.12.1998 At cost As deemed cost (or valuation) in 1995

42,519 87,714 130,233

19,088 -- 19,088

11,113 -- 11,113

72,720 87,714 160,434

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2.

D e c e m b e r

Fixed Assets (Continued)

1 9 9 9

The net book value of land and buildings of the Company is analysed as follows: Company 1999 RM'000 Freehold land and buildings Leasehold land and buildings 1,939 119,193 121,132 1998 RM'000 1,953 120,741 122,694

Freehold and leasehold land and buildings were revalued by the Directors based on valuations by external professional valuers using the open market value basis. Included in fixed assets are assets costing RM12,820,000 (1998 ­ RM11,941,000) for the Group and RM9,984,000 (1998 ­ RM8,958,000) for the Company which have been fully depreciated but are still in use. Other assets of the Group and the Company include capital work-in-progress which comprise expenditure incurred for plant and machinery and buildings in the course of construction amounting to RM370,000 (1998 ­ RM529,000). The balance of the amounts yet to be incurred and not provided for is disclosed as capital commitments in Note 20 of the accounts.

3.

Subsidiary Companies Company 1999 RM'000 Unquoted shares ­ at valuation Amount due from subsidiary companies Amount due to subsidiary companies 12,332 10,762 -- 23,094 1998 RM'000 12,332 10,938 (1,651) 21,619

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3.

Subsidiary Companies (Continued) The subsidiary companies, all of which are incorporated in Malaysia, are: Effective Name of Company Principal Activities Equity Interest 1999 Sindora Wood Products Sdn Bhd Sindora Development Sdn Bhd Sindora Timber Products Sdn Bhd Sindora Trading Sdn Bhd Sindora Furniture Sdn Bhd Manufacturing and trading of wood products Property development and logging operations Trading of laminated timber scantling Trading of furniture and wood products Manufacturing of furniture 100% 100% 100% 100% 100% 1998 100% 100% 70% 100% 100%

The amounts owing by and to the subsidiary companies arose mainly from normal trading transactions and advances. These amounts are unsecured, interest free and with no fixed terms of repayment.

4.

Estate Development Expenditure Group and Company 1999 RM'000 Oil palm planting expenditure Rubber planting expenditure Timber planting expenditure 22,220 3,521 184 25,925 1998 RM'000 22,220 3,043 184 25,447

5.

Investments Group and Company 1999 RM'000 Quoted shares at cost Provision for diminution in value of investments 12,995 (9,343) 3,652 1998 RM'000 12,905 (9,268) 3,637

Market value of quoted shares

2,592

3,645

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6.

D e c e m b e r

Stocks

1 9 9 9

Group 1999 RM'000 Finished goods Work-in-progress Logs Sawn and treated timber Nursery General spare parts and fuel Chemicals and fertilisers Crude palm oil and palm kernel 847 2,009 352 2,337 232 855 84 1,495 8,211 1998 RM'000 515 1,846 112 4,805 -- 810 66 210 8,364

Company 1999 RM'000 56 157 353 104 232 282 30 1,495 2,709 1998 RM'000 -- 243 119 414 -- 523 44 210 1,553

7.

Debtors Group 1999 RM'000 Trade debtors Other debtors, deposits and prepayments 1,585 1,828 3,413 Provision for doubtful debts (828) 2,585 1998 RM'000 2,087 1,411 3,498 (934) 2,564 Company 1999 RM'000 667 1,586 2,253 (673) 1,580 1998 RM'000 692 1,264 1,956 (674) 1,282

8.

Holding Corporation and Related Companies The holding corporation is Johor Corporation, a corporation incorporated under the Johore Enactment No. 4, 1968. Related companies are companies in the Johor Corporation Group. The amount due to holding corporation arising from normal trade debts and advances are unsecured. Amount due from holding corporation bears interest at the prevailing market rates. The amounts due from/to related companies arising from normal trade debts and advances are unsecured, bear interest at bankers' base lending rate and with no fixed terms of repayment.

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L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

9.

Cash and Bank Balances Group 1999 RM'000 Fixed deposits with licensed banks Cash and bank balances 65 33,241 33,306 1998 RM'000 28,597 2,103 30,700 Company 1999 RM'000 65 26,289 26,354 1998 RM'000 24,798 1,417 26,215

Fixed deposits of RM47,000 (1998: RM47,000) are pledged as security for bank guarantee facilities.

10.

Creditors Group 1999 RM'000 Trade creditors Other creditors 2,314 3,856 6,170 1998 RM'000 1,097 5,053 6,150 Company 1999 RM'000 1,971 3,540 5,511 1998 RM'000 545 4,845 5,390

11.

Share Capital Group and Company 1999 RM'000 Authorised: Shares of RM1 each 200,000 200,000 1998 RM'000

Issued and fully paid: Ordinary shares of RM1 each 96,000 96,000

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12.

D e c e m b e r

Reserves

1 9 9 9

Group 1999 RM'000 Non-distributable Revaluation reserve Share premium 45,646 11,107 56,753 Distributable Profit and loss account 63,269 120,022 51,503 108,256 45,646 11,107 56,753 1998 RM'000

Company 1999 RM'000 1998 RM'000

46,743 11,107 57,850 67,650 125,500

46,743 11,107 57,850 54,776 112,626

Based on the estimated tax credits available under Section 108 of the Income Tax Act, 1967 and the balance of the tax exempt account and subject to the agreement with the Inland Revenue Board, the entire retained profits of the Company are available for distribution by way of dividend without incurring additional tax liability. The ability of the Company to distribute its retained earnings is subject to restrictions contained in Section 365 of the Companies Act, 1965. In general (unless exempted from the section), a company is allowed to declare dividends (after making deductions for income tax, if any) for a financial year of an amount not exceeding the after-tax profit of that financial year or not exceeding the average dividends declared in respect of the two financial years immediately preceding that financial year, whichever is the greater. Any after-tax profit not declared as dividends for any financial year commencing on or after 1 July 1997 may be accumulated and paid out as dividends in any subsequent financial year. Although it was announced on 29 October 1999 in the 2000 Budget speech that the aforesaid restrictions be removed with immediate effect, the amendment to Section 365 of the Companies Act, 1965 has thus far not been gazetted.

13.

Deferred Taxation Group 1999 RM'000 At beginning of the year Transfer to profit and loss account (Note 16) ­ current year charge/(release) ­ prior years' release At end of the year 1,001 (134) 1,042 (108) (234) 175 1,001 (134) 1,042 (190) (108) 175 175 1998 RM'000 517 Company 1999 RM'000 175 1998 RM'000 473

49

L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

14.

Turnover Turnover of the Group and the Company consists of the aggregate invoiced value of goods sold less returns and discounts. Intra-group transactions are excluded from the Group turnover.

15.

Profit Before Taxation Group 1999 RM'000 This has been arrived at after charging: Auditors' remuneration ­ current year ­ prior year Bad debts written off Depreciation of fixed assets Directors' fees Directors' salaries and allowances Forest premium Forest royalty Loss on disposal of investment Loss on foreign exchange Overdraft interest Provision for diminution in value of investments Provision for doubtful debts Stocks written off 89 4 -- 5,890 30 462 205 99 -- 7 11 75 7 -- 83 1 175 4,155 31 437 797 398 871 143 4 8,848 380 1,324 58 4 -- 5,157 30 462 205 86 -- 7 11 75 4 -- 51 1 -- 3,413 31 437 797 194 871 -- 4 8,848 307 423 1998 RM'000 Company 1999 RM'000 1998 RM'000

and crediting: Doubtful debts recovered Gain on disposal of fixed assets Gain of foreign exchange Gain on disposal of investment Gross dividend from quoted shares in Malaysia Interest received Rental received Write back of provision for obsolete stocks 1 76 14 46 1 1,924 115 -- 20 2 -- -- 6 2,569 235 727 1 76 -- 46 1 1,723 198 -- -- 2 -- -- 6 2,202 273 --

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16.

D e c e m b e r

Taxation

1 9 9 9

Group 1999 RM'000 Malaysian income tax based on profit for the year: Current Deferred (Note 13) -- 1,001 1,001 Adjustments for prior years: Current Deferred (Note 13) (1,105) (134) (238) -- (234) 9,266 9,608 (108) 9,500 1998 RM'000

Company 1999 RM'000 1998 RM'000

-- 1,001 1,001 (1,111) (134) (244)

9,408 (190) 9,218 -- (108) 9,110

There is no tax liability anticipated for the Group's and Company's current financial year because it constitutes the basis period for the year of assessment 2000 (preceding year basis) wherein tax on chargeable income other than dividend income is waived. Subject to agreement with the Inland Revenue Board, as at 31 December 1999, the Company has unabsorbed capital allowances carried forward of approximately RM3,377,000 (1998 ­ RM2,643,000) which can be utilised to set off against future taxable income.

17.

Dividends Group and Company 1999 RM'000 Interim dividend ­ 10% (1998: 10%) less tax Proposed final dividend ­ 5% tax exempt (1998: 5% less tax) 6,912 4,800 11,712 1998 RM'000 6,912 3,456 10,368

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L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

18.

Earnings per Share Earnings per ordinary share is calculated based on profit after taxation of RM23,478,000 (1998 ­ RM14,144,000) over the weighted average number of ordinary shares in issue during the year of 96,000,000 (1998 ­ 96,000,000).

19.

Significant Related Party Transactions Group 1999 RM'000 Sales to subsidiary and related companies Interest received from holding corporation Rental receivable from subsidiary companies Other charges received from subsidiary company Advances to related companies 61,507 1,252 -- -- 2,966 1998 RM'000 54,213 1,940 -- -- 1,975 Company 1999 RM'000 62,708 1,050 84 137 2,966 1998 RM'000 57,569 1,574 125 202 1,975

Advances payable from related companies

1,973

1,975

1,973

1,975

Purchases from subsidiary and related companies Advisory, agency and consultancy fees paid to related company Secretarial fees paid to holding corporation Corporate fees paid to holding corporation Other charges charged by subsidiary company Purchase of fixed assets from subsidiary company

-- 1,214 13 48 -- --

-- 844 27 59 -- --

87 1,214 13 48 9 --

653 844 13 59 41 47

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 terms and conditions which are mutually agreed.

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20.

D e c e m b e r

Capital Commitments

1 9 9 9

Group and Company 1999 RM'000 Approved but not contracted Contracted but not provided for -- 370 370 1998 RM'000 277 452 729

21.

Segment Information (Loss)/Profit Before By activity: Turnover RM'000 1999 Timber operations Plantation operations Investments 12,580 61,507 -- 74,087 (5,985) 29,254 (29) 23,240 71,094 156,500 3,652 231,246 Taxation RM'000 Total Assets Employed RM'000

1998 Timber operations Plantation operations Investments 16,996 54,212 -- 71,208 (2,982) 36,111 (9,719) 23,410 70,876 152,614 3,637 227,127

No segmental information is provided on a geographical basis as the Group's activities are conducted predominantly in Malaysia.

22.

Comparative Figures Certain comparative figures have been reclassified to conform with the current year's presentation.

53

L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

SHARE PERFORMANCE CHART

C a r t a P r e s t a s i S a h a m

Point/Mata

1,500

1,200 KLSE Composite Index for the period from 29 December 1995 to 31 March 2000 Indeks Komposit BSKL bagi tempoh 29 Disember 1995 hingga 31 Mac 2000

900

600

300

0

KLSE Composite Index Indeks Komposit BSKL

1996 1997 1998 1999 2000

Million Shares/Juta Saham

40

32 Volume Traded for the period from 29 December 1995 to 31 March 2000 Jumlah Diniagakan bagi tempoh 29 Disember 1995 hingga 31 Mac 2000

24

16

8

0

Volume Traded Jumlah Diniagakan

1996 1997 1998 1999 2000

Price/Harga

(RM)

5.00 Share Prices (High and Low) and Closing Prices for the period from 29 December 1995 to 31 March 2000 Harga Saham (Tinggi dan Rendah) dan Harga Penutup bagi tempoh 29 Disember 1995 hingga 31 Mac 2000

4.00

3.00

High Tinggi Low Rendah

2.00

1.00

0

Closing Price Harga Penutup

1996 1997 1998 1999 2000

Share Price Performance Prestasi Harga Saham (RM) 1995 High / Tinggi Low / Rendah 5.45 2.90 1996 4.92 3.44 1997 5.00 0.93 1998 1.77 0.63 1999 2.20 0.98

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SHAREHOLDINGS STATISTICS AS

P e r a n g k a a n

AT 14 APRIL 2000 P e m e g a n g S a h a m

­ ­ ­ ­

p a d a

1 4

A p r i l

2 0 0 0

Authorised share capital / Modal saham dibenarkan Issued and fully paid-up capital / Modal diterbitkan dan dibayar penuh Class of shares / Jenis saham Voting rights / Hak mengundi

RM200,000,000 RM96,000,000 Ordinary Share of RM1.00 each / Saham Biasa RM1.00 setiap satu One vote per ordinary share / Satu undi bagi sesaham biasa

Break down of Shareholdings Pecahan Pemegang Saham No. of Shareholders Bil. Pemegang Saham 1 3,947 382 270 30 8 4,638 No. of Shares Bil. Saham 2 7,748,998 3,278,000 7,242,000 10,613,000 67,118,000 96,000,000

Size of Shareholdings Jumlah Pemegang Saham 1 ­ 499 500 ­ 5,000 5,001 ­ 10,000 10,001 ­ 100,000 100,001 ­ 1,000,000 Above / Lebih 1,000,000 Total / Jumlah

Percentage Peratus 0.02 85.10 8.24 5.82 0.65 0.17 100.00

Percentage Peratus -- 8.07 3.42 7.54 11.06 69.91 100.00

Twenty Largest Shareholders Dua Puluh Pemegang Saham Utama Name Nama 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Perbadanan Johor ­ 2 a/cs Yeoh Kean Hua BBMB Sec. Nominees (T) Sdn Bhd ­ A/C PJB Capital Sdn Bhd PRB Noms (T) Sdn Bhd ­ A/C Rubber Industry Smallholders Development Authority ­ 2 a/cs Bank Simpanan Nasional ­ 2 a/cs Amanah Raya Berhad ­ A/C Amanah Saham Selangor Permodalan Nasional Berhad Employees Provident Fund Board Johor Capital Holdings Sdn Bhd Lembaga Tabung Haji M & A Nominees (A) Sdn Bhd ­ A/C Pedigree Limited Pristine Bay Sdn Bhd Yeoh Meng Ghee Johan Enterprise Sdn Bhd Kulim (Malaysia) Berhad HSBC Nominees (T) Sdn Bhd ­ A/C HSBC (M) Trustee Berhad for Amanah Saham Kedah Wong Yoon Chyuan UMF Nominees (T) Sdn Bhd ­ A/C Kimara Equities Sdn Bhd Malaysia Nominees (T) Sdn Bhd ­ A/C Zalaraz Sdn Bhd BHLB Nominees (T) Sdn Bhd ­ A/C Chin Keo Chye @ Chin Key Soo No. of Shares Bil. Saham 52,914,000 4,290,000 3,332,000 2,550,000 2,548,000 1,361,000 1,200,000 934,000 750,000 600,000 581,000 572,000 510,000 502,000 500,000 470,000 461,000 447,000 384,000 335,000 Percentage Peratus 55.12 4.47 3.47 2.66 2.65 1.42 1.25 0.97 0.78 0.63 0.61 0.60 0.53 0.52 0.52 0.49 0.48 0.47 0.40 0.35

55

L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

Substantial Shareholders Pemegang Saham Utama Name Nama 1. Perbadanan Johor ­ 2 a/cs Group ­ Johor Capital Holdings Sdn Bhd ­ Pristine Bay Sdn Bhd ­ PJB Capital Sdn Bhd ­ Kulim (Malaysia) Berhad Yeoh Kean Hua PRB Nominees (T) Sdn Bhd ­ A/C Rubber Industry Smallholders Development Authority ­ 2 a/cs Bank Simpanan Nasional ­ 2 a/cs No. of Shares Bil. Saham 52,914,000 750,000 572,000 3,332,000 500,000 Percentage Peratus 55.12

2. 3. 4.

5,154,000 4,290,000 2,550,000 2,548,000

5.37 4.47 2.66 2.65

Analysis of Shareholders Analisa Pemegang Saham No. of Shareholders Bil. Pemegang Saham Malaysian / Malaysia ­ Bumiputra / Bumiputera ­ Others / Lain-lain Foreigners / Asing Total / Jumlah

Percentage Peratus

No. of Shares Bil. Saham

Percentage Peratus

763 3,758 117 4,638

16.45 81.03 2.52 100.00

70,121,000 24,549,000 1,330,000 96,000,000

73.04 25.57 1.39 100.00

Voting Rights of Shareholders Hak Mengundi Pemegang-Pemegang Saham Every member of the Company present in person or by proxy shall have one vote on a show of hand and in the case of a poll shall have one vote for every share of which he/she is the holder. Setiap ahli-ahli Syarikat yang hadir secara peribadi atau secara proksi adalah berhak ke atas satu undi melalui undian tangan dan sekiranya undian dibuat secara bertulis (poll), ahli-ahli berhak ke atas satu undi untuk setiap satu unit saham yang dipegang.

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LIST OF GROUP LANDED PROPERTIES

Location / Property Description Mukim of Rengam Kluang, Johor ­ oil palm and rubber plantations ­ palm oil mill Mukim of Chaah Bahru Batu Pahat, Johor ­ oil palm plantation

Land Area (Hectares / '000 Sq. Ft.)

Built-Up Area ('000 Sq. Ft.)

Tenure

Approximate Age Of Property (Year)

Net Book Value As At 31 December 1999 RM'000

3,939/

27.03/

99 years lease expiring 24.01.2086 Freehold 99 years lease expiring 20.03.2081 and 22.12.2077

12

67,977

16/ 2,371.7/

/120.7 4.67/

1 17 and 21

18,935 28,678

Mukim of Ulu Sungai Johor, Kota Tinggi, Johor ­ vacant land for 20 units of terrace houses ­ industrial land and buildings for office and factory ­ factory building/ moulding factory ­ 1 unit of double ­ storey bungalow (staff resident) ­ 5 units of double storey semi-detached houses (staff residents) ­ 6 units of single storey semi-detached houses (staff residents)

/68

n.a.

99 years lease expiring 18.04.2085 60 years lease expiring 30.01.2041 60 years lease expiring 30.01.2041 99 years lease expiring 18.04.2085 99 years lease expiring 18.04.2085 99 years lease expiring 18.04.2085

14

181

/2,344

/857

18

14,748

/5

/5

14

970

/6

/3

13

94

/32

/9

13

301

/32

/7

13

260

Mukim of Plentong Johor Bahru, Johor (No. 6, 37, 39 & 41) Jalan Perang, Taman Pelangi Johor Bahru ­ 4 units of 3 storey shophouses

/8

/18

Freehold

18

588

57

L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

S e n a r a i

H a r t a n a h

K u m p u l a n

Lokasi / Keterangan Hartanah Mukim Rengam Kluang, Johor ­ ladang kelapa sawit dan getah ­ kilang kelapa sawit Mukim Chaah Bahru Batu Pahat, Johor ­ ladang kelapa sawit

Keluasan Tanah (Hektar / '000 Kaki Persegi)

Kawasan Dibina ('000 Kaki Persegi)

Hakmilik / Pegangan

Jangkaan Usia Harta Milikan (Tahun)

Nilai Buku Bersih 31 Disember 1999 RM'000

3,939/

27.03/

Pajakan 99 tahun tamat pada 24.01.2086 Milikan kekal Pajakan 99 tahun tamat pada 20.03.2081 dan 22.12.2077

12

67,977

16 / 2,371.7/

/120.7 4.67/

1 17 dan 21

18,935 28,678

Mukim Ulu Sungai Johor, Kota Tinggi, Johor ­ tanah kosong dimiliki untuk pembangunan 20 unit perumahan ­ tanah perindustrian dan bangunan yang digunakan sebagai pejabat dan kilang ­ bangunan kilang/ kilang kayu kumai ­ 1 unit banglo dua tingkat (kediaman anggota pekerja) ­ 5 unit rumah berbandung dua tingkat (kediaman anggota pekerja) ­ 6 unit rumah berbandung satu tingkat (kediaman anggota pekerja) Mukim Plentong Johor Bahru, Johor (No. 6, 37, 39 & 41) Jalan Perang, Taman Pelangi Johor Bahru ­ 4 unit rumah kedai tiga tingkat

/68

Tiada

Pajakan 99 tahun tamat pada 18.04.2085 Pajakan 60 tahun tamat pada 30.01.2041 Pajakan 60 tahun tamat pada 30.01.2041 Pajakan 99 tahun tamat pada 18.04.2085 Pajakan 99 tahun tamat pada 18.04.2085 Pajakan 99 tahun tamat pada 18.04.2085

14

181

/2,344

/857

18

14,748

/5

/5

14

970

/6

/3

13

94

/32

/9

13

301

/32

/7

13

260

/8

/18

Milikan kekal

18

588

This page has been intentionally left blank. Muka surat ini sengaja dibiarkan kosong

L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

PROXY FORM

(Before completing this form please refer to the notes below)

SINDORA BERHAD

(Incorporated In Malaysia)

(Company No.: 13418-K)

*I / We__________________________________________________________________________________________________________________

(FULL NAME IN CAPITAL LETTERS)

of _____________________________________________________________________________________________________________________

(ADDRESS)

being a *member/members of SINDORA BERHAD hereby appoint the Chairman of the meeting or _____________________________________________________________________________________________________________________

(FULL NAME)

of _____________________________________________________________________________________________________________________

(ADDRESS)

or failing *him/her, _____________________________________________________________________________________________________

(FULL NAME)

of _____________________________________________________________________________________________________________________

(ADDRESS)

as *my/our Proxy to attend and vote for *me/us and on *my/our behalf at the Twenty Seventh (27th) Annual General Meeting of the Company to be held on Monday, 22 May 2000 at 10.30 a.m. or at any adjournment thereof. Should you desire to direct your Proxy how to vote on the Resolutions set out in the Notice of Meeting and as summarised below, please indicate with an "X" in the appropriate space. If no specific direction as to voting is given, Proxy will vote or abstain at *his/her discretion. RESOLUTION 1. 2. To receive and adopt the Report and Audited Accounts (Resolution 1) To approve Final Dividend of 5% tax exempt for the financial year ended 31 December 1999 (Resolution 2) To re-elect Directors: i. Hasnah bte Ali (Article 88) (Resolution 3) ii. Tan Sri Datuk Arshad Ayub (Section 129(6)) of the Companies Act, 1965 (Resolution 4) FOR AGAINST

3.

4. 5.

To approve Directors' Fees (Resolution 5) To re-appoint Messrs Ernst & Young as Auditors (Resolution 6)

Number of Shares Held (units) Signed this ____________ day of _________ 2000. _______________________________________ Signature of Shareholder(s) / Common Seal of Appointer

Notes: 1. 2. A member entitles to attend and vote at this meeting is entitled to appoint a proxy and vote instead of him. A proxy may but need not be a member of the Company. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if the appointer is a corporation either under seal or in some other manner approved by its Board of Directors. Where a member appoints two proxies, the appointment shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. The instrument appointing a proxy must be deposited at the registered office of the Company, 13th Floor, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor not less than forty eight (48) hours before the time appointed for holding the meeting or any adjournment thereof.

3.

(*) strike out whichever inapplicable.

Stamp

SINDORA BERHAD 13th Floor, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor.

L a p o r a n Ta h u n a n 1 9 9 9 1999 Annual Report

SINDORA BERHAD

(Diperbadankan Di Malaysia)

B o r a n g

P r o k s i

(No. Syarikat: 13418-K)

(Sila rujuk nota sebelum borang ini diisipenuh)

*Saya/Kami _____________________________________________________________________________________________________________

(NAMA PENUH DENGAN HURUF BESAR)

dari ____________________________________________________________________________________________________________________

(ALAMAT)

sebagai *ahli/ahli-ahli syarikat SINDORA BERHAD, dengan ini melantik Pengerusi Mesyuarat atau ___________________________________________________________________________________________________________________

(NAMA PENUH)

dari ____________________________________________________________________________________________________________________

(ALAMAT)

atau jika beliau tidak dapat hadir, ______________________________________________________________________________________

(NAMA PENUH)

dari ____________________________________________________________________________________________________________________

(ALAMAT)

sebagai Proksi *saya/kami untuk menghadiri dan mengundi mengikut arahan yang tertentu di atas resolusi-resolusi bagi pihak *saya/kami di dalam Mesyuarat Agung Tahunan Syarikat Yang Ke Dua Puluh Tujuh (27) yang akan diadakan pada hari Isnin, 22 Mei 2000, jam 10.30 pagi dan sebarang mesyuarat penangguhannya. Jika anda ingin mengarahkan Proksi anda mengundi mengikut arahan yang tertentu di atas resolusi-resolusi yang tercatat di dalam Notis Mesyuarat dan yang tercatat secara ringkas di bawah, tandakan "X" di tempat yang berkenaan. Jika arahan tertentu tidak diberi, Proksi anda akan mengundi mengikut budibicaranya sendiri. RESOLUSI 1. 2. Menerima dan meluluskan Laporan dan Akaun Beraudit (Resolusi 1) Meluluskan Dividen Akhir 5% yang dikecualikan cukai bagi tahun berakhir 31 Disember 1999 (Resolusi 2) Melantik semula Pengarah-pengarah berikut: i. Hasnah bte Ali (Artikel 88) (Resolusi 3) ii. 4. 5. Tan Sri Datuk Arshad Ayub (Seksyen 129(6)) Akta Syarikat, 1965 (Resolusi 4) MENYOKONG MENENTANG

3.

Meluluskan yuran Pengarah (Resolusi 5) Melantik semula Tetuan Ernst & Young sebagai Juruaudit (Resolusi 6)

Bilangan Saham (unit) Ditandatangani pada ____________ haribulan _________ 2000. _______________________________________ Tandatangan Pemegang Saham / Cop Mohor Pelantik

Nota: 1. 2. Seorang ahli yang berhak menghadiri dan mengundi dalam mesyuarat ini berhak melantik seorang proksi untuk menghadiri bagi pihak dirinya. Seorang proksi tidak semestinya seorang ahli syarikat. Suratcara perlantikan proksi hendaklah dibuat secara bertulis oleh pelantik atau wakil mutlak yang berkuasa atau jika pelantik adalah sebuah Perbadanan/Syarikat, Suratcara mestilah disempurnakan di bawah meteri Perbadanan/Syarikat atau di dalam bidang kuasa wakil mutlak. Apabila seorang Ahli melantik dua orang proksi, perlantikan tersebut tidak akan diterima sebagai sah melainkan setelah dinyatakan bilangan saham yang akan diwakili oleh proksi masing-masing. Suratcara perlantikan proksi hendaklah sampai di Pejabat Berdaftar Syarikat, Tingkat 13, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor tidak lewat dari empat puluh lapan (48) jam sebelum Mesyuarat ditetapkan atau sebarang mesyuarat penangguhannya.

3.

(*) sila potong mana-mana yang tidak berkenaan.

Setem

SINDORA BERHAD 13th Floor, Menara Perbadanan Johor, KOTARAYA, 80000 Johor Bahru, Johor.

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