LAPORAN TAHUNAN 2002 ANNUAL REPORT - I3investor

LAPORAN TAHUNAN 2002 ANNUAL REPORT

SINDORA BERHAD(A Member of the Johor Corporation Group of Companies)

Company No.: 13418-K

Corporate ProfileProfil Korporat

Oil palm plantation and mill sector

will continue to be a strong

contributor to cashflows in

supporting the corporate renewal

needs and future growth. With a

clearly defined Group’s activities

focusing on three business thrusts,

namely Palm Oils, Intrapreneur

Venture and Timber, the Group is

in a better position to meet the

challenges and opportunities in the

future.

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 a

paid-up capital of RM96.0 million.

During the financial year, the Group

has decided to totally review its

strategic position in the timber

business with the application of a

new business model, termed

“Intrapreneur Venture” to improve

earnings, add value and maximise

returns to shareholders. The

traditional core business in timber,

which in the past had been a

major contributor to corporate

growth, has shown signs of decline

due to extreme challenges faced by

the industry.

disebabkan pelbagai cabaran dan

halangan yang dihadapi oleh

industri perkayuan amnya.

Sektor perladangan dan pengilangan

minyak sawit akan terus menjadi

penyumbang utama kepada aliran

tunai bagi menyokong program

pengukuhan dan pertumbuhan

Kumpulan di masa hadapan.

Dengan struktur bisnes yang lebih

fokus dan jelas, berteraskan kepada

3 aktiviti utama iaitu Bisnes Kelapa

Sawit, Intrapreneur Venture dan

Perkayuan, Kumpulan akan berada

dalam kedudukan yang lebih baik

untuk menghadapi cabaran dan

merebut peluang di masa hadapan.

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 sebanyak RM96.0 juta.

Dalam tahun kewangan, Kumpulan

telah memutuskan untuk mengkaji

semula kedudukan strategiknya

dalam bisnes perkayuan dengan

melaksanakan model bisnes baru

yang dikenali sebagai “Intrapreneur

Venture” bagi meningkatkan

perolehan, menambah nilai dan

memaksimumkan pulangan kepada

pemegang saham. Bisnes perkayuan

yang selama ini merupakan bisnes

teras tradisi dan antara penyumbang

utama kepada pertumbuhan korporat

Kumpulan, telah menunjukkan

tanda-tanda kemerosotan

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Corporate Profile •

Notice of Annual General Meeting 2

Statement Accompanying The Notice of Annual General Meeting 2

Corporate Information 8

Board of Directors 9

Profile of the Board of Directors 10

Management Team 16

Corporate Structure 17

Corporate Statement 18

Corporate Governance Statement 37

Internal Control Statement 49

Audit Committee 56

Group’s Financial Summary 59

Group’s Performance Charts 60

Corporate Diary 61

Financial Statements 64

Share Performance Charts 101

Shareholdings Statistics 102

List of Group’s Landed Properties 104

Proxy/Corporate Representative Form •

Profil Korporat •

Notis Mesyuarat Agung Tahunan 3

Penyata Bersama Notis Mesyuarat Agung Tahunan 7

Maklumat Korporat 8

Lembaga Pengarah 9

Profil Lembaga Pengarah 10

Kumpulan Pengurusan 16

Struktur Korporat 17

Penyata Korporat 18

Penyata Tadbir Urus Korporat 37

Penyata Kawalan Dalaman 49

Jawatankuasa Audit 56

Ringkasan Kewangan Kumpulan 59

Carta Prestasi Kumpulan 60

Diari Korporat 61

Carta Prestasi Saham 101

Perangkaan Pemegang Saham 102

Senarai Hartanah Kumpulan 105

Borang Proksi/Perwakilan Syarikat •

ContentsKandungan

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NOTICE IS HEREBY GIVEN THAT the Thirtieth (30th) Annual General Meeting of SINDORA

BERHAD will be held at the Permata 3 Room, Puteri Pan Pacific Hotel, Jalan Trus/Salim,

80000 Johor Bahru on Wednesday, 11 June 2003 at 12.00 noon to transact the following

business:

As Ordinary Business

1. To receive and adopt the Report and Audited Accounts for the year ended 31 December 2002 and the reports of the Directors and Auditors thereon. Resolution 1

2. To approve the final dividend of 5% tax exempt in respect of the financial year ended31 December 2002. Resolution 2

3. To re-elect the following Directors who retire in accordance with the Company’sArticles of Association:

i. Tan Sri Dato’ Muhammad Ali Hashim (Article 93) Resolution 3ii. Kua Hwee Sim (Article 93) Resolution 4iii. Hj Esa bin Mamek (Article 93) Resolution 5iv. Halmi bin Jasmin (Article 93) Resolution 6

4. To consider, and if deem fit, to pass the following resolution pursuant to Section129(6) of the Companies Act 1965: Resolution 7

“THAT Tan Sri Datuk Arshad Ayub, who is over the age of seventy (70) years, behereby re-appointed as Director of the Company to hold office until the next AnnualGeneral Meeting of the Company.”

5. To approve the payment of Directors’ fees in respect of the financial year ended 31 December 2002. Resolution 8

6. To re-appoint Messrs. Ernst & Young as Auditors and to authorise the Directors to fixtheir remuneration. Resolution 9

7. To transact any other business of which due notice shall be given.

ORDINARY RESOLUTION 1:PROPOSED RENEWAL OF THE AUTHORITY FOR THE COMPANY TO PURCHASEITS OWN SHARES (“PROPOSED SHARE BUY-BACK”). Resolution 10

“THAT, subject to compliance with all applicable laws, rules, regulations andguidelines for the time being in force or as may be amended from time to timeapproval be and is hereby given to the Company to allocate an amount of funds notexceeding the accumulated retained profits (audited) as at 31 December 2002 topurchase on the market of the Kuala Lumpur Stock Exchange and/or hold such ordinaryshares of RM1.00 each forming up to RM9,600,000 being ten percent (10%) of theCompany’s issued and paid-up share capital AND THAT the Directors of the Companybe and are hereby empowered to determine the actual number of shares to bepurchased and/or held, the timing of the purchase and the treatment of the purchasedshares that is to say whether to cancel the shares so purchased or to retain them astreasury shares or to carry out part or both and in respect of those shares retained,whether to re-sell them on the markets and/or cancel and/or to distribute them asshare dividends or to carry out part or both as and when the Directors deem fit and

Notice of Annual General MeetingNotis Mesyuarat Agung Tahunan

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DENGAN INI DIBERITAHU BAHAWA Mesyuarat Agung Tahunan SINDORA BERHAD yang ke

Tiga Puluh (30) akan diadakan di Bilik Permata 3, Hotel Puteri Pan Pacific, Jalan Trus/Salim,

80000 Johor Bahru, Johor pada hari Rabu, 11 Jun 2003, jam 12.00 tengahari bagi tujuan-

tujuan berikut:

Sebagai Urusan Biasa

1. Menerima dan meluluskan Laporan dan Akaun Beraudit bagi tahun berakhir 31 Disember 2002 serta Laporan Pengarah-pengarah dan Juruaudit berkaitan dengannya. Resolusi 1

2. Meluluskan dividen akhir sebanyak 5% dikecualikan cukai bagi tahun berakhir 31 Disember 2002. Resolusi 2

3. Melantik semula Pengarah-pengarah berikut yang bersara mengikut Tataurusan Syarikat:

i. Tan Sri Dato’ Muhammad Ali Hashim (Artikel 93) Resolusi 3ii. Kua Hwee Sim (Artikel 93) Resolusi 4iii. Hj Esa bin Mamek (Artikel 93) Resolusi 5iv. Halmi bin Jasmin (Artikel 93) Resolusi 6

4. Menimbang dan jika dianggap wajar, meluluskan resolusi berikut menurut Seksyen129(6), Akta Syarikat 1965: Resolusi 7

“BAHAWA melantik semula Tan Sri Datuk Arshad Ayub yang berusia melebihi tujuhpuluh (70) tahun sebagai Pengarah Syarikat bagi tempoh sehingga Mesyuarat AgungTahunan yang akan datang.”

5. Meluluskan pembayaran ganjaran kepada Pengarah-pengarah bagi tahun kewanganberakhir 31 Disember 2002. Resolusi 8

6. Melantik semula Tetuan Ernst & Young sebagai Juruaudit dan memberi kuasa kepadaPengarah-pengarah untuk menetapkan bayaran mereka. Resolusi 9

7. Menjalankan sebarang urusan Syarikat yang lain di mana notis yang sewajarnya telahdiberikan.

RESOLUSI BIASA 1:CADANGAN PEMBAHARUAN BIDANGKUASA SYARIKAT UNTUK MEMBELI-BALIKSAHAMNYA (“CADANGAN BELI-BALIK SAHAM”). Resolusi 10

“BAHAWA tertakluk kepada undang-undang dan peraturan yang sedang berkuatkuasaatau akan digubah dari masa ke semasa, kebenaran dengan ini diberi kepada Syarikatmengenepikan dana yang jumlahnya tidak melebihi keuntungan terkumpul (beraudit)setakat 31 Disember 2002 untuk membeli di pasaran Bursa Saham Kuala Lumpurdan/atau menyimpan saham-saham biasa RM1.00 berjumlah RM9,600,000 yakniterhad kepada sepuluh peratus (10%) daripada saham Syarikat yang dikeluarkan danberbayar DAN BAHAWASANYA para Pengarah Syarikat diberikuasa menetapkanjumlah sebenar saham yang akan dibeli dan/atau disimpan, masa pembelian dantindakan selepas pembelian yakni sama ada membatalkan saham yang dibeli itu ataumenyimpannya dalam perbendaharaan atau menjalankan keduanya dan sekiranyasaham disimpan, sama ada saham tersebut dijual atau diedarkan sebagai sahamdividen atau pun keduanya mengikut budibicara para Pengarah dan mengambil segalalangkah yang bersesuaian dan memasuki perjanjian atau pakatan atau jaminan dengan

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to take all steps as shall be necessary and to enter into any agreement, arrangementand guarantee with any party or parties to implement, finalise and give full effect tothe aforesaid purchase with full powers to assent to any condition, modification,revaluation, variation and/or amendments as may be imposed by any relevantauthority from time to time and in the best interest of the Company AND THAT theauthority conferred by this resolution shall be effective immediately upon the passingif this resolution and shall determine upon the conclusion of the next annual generalmeeting of the Company following the date of the passing of this ordinary resolutionor upon the revocation or variation by the shareholders of the Company in a generalmeeting or upon the expiration of the period during which the next annual generalmeeting is required by law to be held, whichever shall occur first.”

ORDINARY RESOLUTION 2:AUTHORITY TO ISSUE SHARES TO SECTION 132D OF THE COMPANIES ACT, 1965 Resolution 11

“THAT the Directors of the Company be and are hereby authorised, pursuant toSection 132D of the Companies Act, 1965 to allot and issue shares of the Companyat any time to such persons, upon such terms and conditions and for such purposesthe Directors in their absolute discretion shall deem fit provided always that theaggregate number of shares to be issued shall not exceed ten percent (10%) of theissued share capital of the Company and the relevant approvals of the regulatorybodies shall have been obtained.”

NOTICE OF ENTITLEMENT AND PAYMENT OF DIVIDEND NO. 13

Subject to approval of Resolution 2 above, NOTICE IS HEREBY GIVEN THAT a final Dividendof 5% tax exempt in respect of the financial year ended 31 December 2002 on theentitled issued ordinary shares capital of the Company payable on 15 July 2003 toshareholders registered in the Register of Members of the Company with the Registrars,EPA Management Sdn Bhd, Ulu Tiram Estate, K.B No 735, 80990 Johor Bahru, Johor atthe close of business at 5.00 p.m on 27 June 2003.

Further NOTICE IS ALSO HEREBY GIVEN that a depositor shall qualify for entitlement onlyin respect of:

a) Shares transferred into the depositor’s securities accounts before 4.00 p.m on 27 June2003 in respect of ordinary transfers;

b) Shares bought on the Kuala Lumpur Stock Exchange on a cum entitlement basisaccording to the Rules of the Kuala Lumpur Stock Exchange.

By Order of the BoardSINDORA BERHAD

MOHAMMAD NAZRI BIN AB RAHIM, ACIS (MAICSA 1026245)

JAMALLUDIN BIN KALAM (LS 02710)

Secretaries

Johor Bahru21 May 2003

Notice of Annual General MeetingNotis Mesyuarat Agung Tahunan

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mana-mana pihak demi melaksanakan, memuktamadkan dan menyempurnakansetiap pembelian dengan bidangkuasa untuk menetapkan sebarang syarat, modifikasipemilikan semula, pembetulan atau perubahan sepertimana disyaratkan oleh pihakberwajib dari masa ke semasa dan mementingkan Syarikat DAN BAHAWASANYAkuasa di bawah resolusi ini bermula daripada resolusi ini diluluskan dan berakhir padakesimpulan mesyuarat agung tahunan Syarikat selepas ini atau pada tarikh kuasa inidibatalkan atau dipinda di mesyuarat pemegang saham atau apabila tamatnyatempoh di mana mesyuarat agung tahunan yang akan datang wajib diadakan, manayang berlangsung dahulu.”

RESOLUSI BIASA 2:BIDANGKUASA UNTUK MENERBITKAN SAHAM SELARAS DENGAN SEKSYEN132D AKTA SYARIKAT, 1965 Resolusi 11

“BAHAWA kuasa dengan ini diberi kepada para Pengarah mengikut Seksyen 132DAkta Syarikat, 1965 untuk mengeluarkan saham-saham Syarikat pada bila-bila masakepada sesiapa berdasarkan syarat dan terma dan untuk tujuan-tujuan yang dianggapwajar mengikut budibicara para Pengarah dengan syarat jumlah saham yangdikeluarkan tidak melebihi sepuluh peratus (10%) modal saham Syarikat yang telahdikeluarkan dan tertakluk kepada kelulusan diterima daripada pihak yang berwajib.”

NOTIS KELAYAKAN DAN PEMBAYARAN DIVIDEN NO. 13

Tertakluk kepada kelulusan Resolusi 2 di atas, DENGAN INI DIBERITAHU BAHAWA dividenakhir sebanyak 5% yang dikecualikan cukai bagi tahun berakhir 31 Disember 2002 ke atassaham-saham biasa Syarikat yang berkelayakan akan dibayar pada 15 Julai 2003 kepadapemegang-pemegang saham berdaftar di Daftar Pemegang Saham Syarikat dengan PendaftarSaham Syarikat, EPA Management Sdn Bhd, Ladang Ulu Tiram, K.B No. 735, 80990 JohorBahru, Johor pada penutupan urusniaga pada jam 5.00 petang pada 27 Jun 2003.

DENGAN INI SELANJUTNYA DIBERITAHU BAHAWA pendeposit adalah berkelayakan untukhak dividen hanya dalam keadaan-keadaan berikut:

a) Saham-saham yang dipindah milik kepada akaun sekuriti pendeposit sebelum jam4.00 petang pada 27 Jun 2003 berkaitan dengan pindah milik biasa;

b) Saham-saham yang dibeli di BSKL yang berkelayakan berdasarkan pada peraturanasas yang ditetapkan oleh BSKL.

Dengan Perintah Lembaga PengarahSINDORA BERHAD

MOHAMMAD NAZRI BIN AB RAHIM, ACIS (MAICSA 1026245)


Setiausaha-Setiausaha

Johor Bahru21 Mei 2003

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Statement Accompanying The Notice of Annual General Meeting(Pursuant to Paragraph 8.28(2) of the KLSE Listing Requirements)

Penyata Bersama Notis Mesyuarat Agung Tahunan(Selaras dengan peruntukan Para 8.28(2) Syarat-syarat Penyenaraian BSKL)

1. Directors who are standing for re-election at the Thirtieth (30th) Annual General Meeting of theCompany are as follows:

i. Tan Sri Dato' Muhammad Ali Hashim – Resolution 3ii. Kua Hwee Sim – Resolution 4iii. Hj Esa Bin Mamek – Resolution 5iv. Halmi Bin Jasmin – Resolution 6v. Tan Sri Datuk Arshad Ayub – Resolution 7

The profile of the Directors standing for re-election are on page 10 to 15.

2. Date, Time and Place of Board Meeting:

3. Details of Attendance of Directors at Board of Directors Meeting:

4. Rozan bin Mohd Sa’at was appointed as Managing Director on 1 September 2002. He has servedthe Company for less than three (3) years and the service contract will expire on 31 August 2005.He will not retire at this Annual General Meeting according to Clause 7.28 of the KLSE ListingRequirements and Articles of the Company.

Date of Meeting Time Venue

20 February 2002 11.00 a.m Menara Johor Corporation

22 May 2002 10.30 a.m Menara Johor Corporation

7 August 2002 11.00 a.m Menara Johor Corporation

14 November 2002 2.15 p.m Menara Johor Corporation

27 December 2002 11.00 a.m Menara Johor Corporation

Name of Directors No. of Meeting

Tan Sri Dato’ Muhammad Ali Hashim (appointed on 1 August 2002) 3 out of 5

Rozan bin Mohd Sa’at (appointed on 23 May 2003) 3 out of 5

Tan Sri Datuk Arshad Ayub (appointed on 7 July 1995) 4 out of 5

Kua Hwee Sim (appointed on 1 August 2002) 3 out of 5

Hj Esa bin Mamek (appointed on 1 January 2003) N/A

Halmi bin Jasmin (appointed on 20 February 2003) N/A

Mohammad bin Alwi (resigned on 20 February 2003) 5 out of 5

Hasnah bte Ali (resigned on 16 August 2002) 3 out of 5

Hj Abd Razak bin Selamat (resigned on 1 May 2002) 1 out of 5

Hj Abd Jalal bin Basimi (resigned on 1 May 2002) 1 out of 5

Dato’ Johari bin Mohamed (resigned on 1 August 2002) 2 out of 5

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1. Para Pengarah yang menawarkan diri untuk dipilih semula pada Mesyuarat Agung Tahunan yang

ke-Tiga Puluh (30) adalah:

i. Tan Sri Dato’ Muhammad Ali Hashim – Resolusi 3

ii. Kua Hwee Sim – Resolusi 4

iii. Hj Esa bin Mamek – Resolusi 5

iv. Halmi bin Jasmin – Resolusi 6

v. Tan Sri Datuk Arshad Ayub – Resolusi 7

Profil Para Pengarah yang menawarkan diri untuk dipilih semula adalah seperti di muka surat 10

hingga 15.

2. Butiran Mesyuarat Ahli Lembaga Pengarah

3. Butiran mengenai kehadiran para pengarah di Mesyuarat Ahli Lembaga Pengarah adalah seperti

berikut:

4. Rozan bin Mohd Sa’at dilantik sebagai Pengarah Urusan Syarikat pada 1 September 2002. Beliau

telah berkhidmat kurang daripada tiga (3) tahun dan kontrak perkhidmatannya akan tamat pada

31 Ogos 2005. Beliau juga tidak bersara di dalam Mesyuarat Agung Tahunan Syarikat menurut Para

7.28, Syarat Penyenaraian BSKL dan Tata Urus Syarikat.

Tarikh Mesyuarat Masa Tempat

20 Februari 2002 11.00 pagi Menara Johor Corporation

22 Mei 2002 10.30 pagi Menara Johor Corporation

7 Ogos 2002 11.00 pagi Menara Johor Corporation

14 November 2002 2.15 petang Menara Johor Corporation

27 Disember 2002 11.00 pagi Menara Johor Corporation

Pengarah Kekerapan Mesyuarat

Tan Sri Dato’ Muhammad Ali Hashim (dilantik pada 1 Ogos 2002) 3 daripada 5

Rozan bin Mohd Sa’at (dilantik pada 23 Mei 2002) 3 daripada 5

Tan Sri Datuk Arshad Ayub (dilantik pada 7 Julai 1995) 4 daripada 5

Kua Hwee Sim (dilantik pada 1 Ogos 2002) 3 daripada 5

Hj Esa bin Mamek (dilantik pada 1 Januari 2003) N/A

Halmi bin Jasmin (dilantik pada 20 Februari 2003) N/A

Mohammad bin Alwi (bersara pada 20 Februari 2003) 5 daripada 5

Hasnah bte Ali (bersara pada 16 Ogos 2002) 3 daripada 5

Hj Abd Razak bin Selamat (bersara pada 1 Mei 2002) 1 daripada 5

Hj Abd Jalal bin Basimi (bersara pada 1 Mei 2002) 1 daripada 5

Dato’ Johari bin Mohamed (bersara pada 1 Ogos 2002) 2 daripada 5

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Corporate InformationMaklumat Korporat

BOARD OF DIRECTORSLembaga Pengarah

TAN SRI DATO’ MUHAMMAD ALIHASHIMChairman / PengerusiNon-Independent Non-Executive Director /Pengarah Bukan Bebas Bukan Eksekutif

ROZAN BIN MOHD SA’ATManaging Director / Pengarah Urusan

TAN SRI DATUK ARSHAD AYUBIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

KUA HWEE SIMIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

HJ ESA BIN MAMEKNon-Independent Non-Executive Director /Pengarah Bukan Bebas Bukan Eksekutif

HALMI BIN JASMINNon-Independent Non-Executive Director /Pengarah Bukan Bebas Bukan Eksekutif

SECRETARIESSetiausaha-Setiausaha

MOHAMMAD NAZRI BIN AB. RAHIMACIS (MAICSA 1026245)


REGISTERED OFFICEPejabat Berdaftar

13th Floor, Menara Johor CorporationKOTARAYA80000 Johor Bahru, MalaysiaTelephone / Telefon : 607-2232692Facsimile / Faksimili : 607-2233175

CORPORATE OFFICE ADDRESSAlamat Pejabat Korporat

9C Level 9, Menara Ansar65 Jalan Trus80000 Johor Bahru, MalaysiaTelephone / Telefon : 607-2215459Facsimile / Faksimili : 607-2260131Website: www.sindora.com.my

OFFICE AND FACTORY ADDRESSAlamat Pejabat Operasi dan Kilang

Lot 1384, 45th KmKluang-Kota Tinggi HighwayBandar Tenggara, 81000 KulaiJohor, MalaysiaTelephone / Telefon : 607-896 1285Facsimile / Faksimili : 607-896 1342

REGISTRARPendaftar

EPA Management Sdn BhdUlu Tiram Estate, P.O.Box 73580990 Johor Bahru, MalaysiaTelephone / Telefon : 607-8611611

Ext / Sambg. 1800and / dan 1802

Facsimile / Faksimili : 607-8631908E-mail: [email protected]

PRINCIPAL BANKERSBank-bank Utama

Malayan Banking Berhad

Bumiputra-Commerce Bank Berhad

AUDITORSJuruaudit

Ernst & Young, Public AccountantsSuite 11,2A, Level 11, Menara Pelangi2, Jalan Kuning, Taman Pelangi80400 Johor Bahru, Malaysia

AUDIT COMMITTEEEstablished on 2 May 1995Jawatankuasa AuditDitubuhkan pada 2 Mei 1995

Chairman / PengerusiTAN SRI DATUK ARSHAD AYUBIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

Members / AhliKUA HWEE SIMIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

HALMI BIN JASMINNon-Independent Non-Executive Director /Pengarah Bukan Bebas Bukan Eksekutif

REMUNERATION COMMITTEEEstablished on 14 December 2001Jawatankuasa ImbuhanDitubuhkan pada 14 Disember 2001

Chairman / PengerusiTAN SRI DATO’ MUHAMMAD ALIHASHIMNon-Independent Non-Executive Director /Pengarah Bukan Bebas Bukan Eksekutif

Members / AhliTAN SRI DATUK ARSHAD AYUBIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

KUA HWEE SIMIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

NOMINATION COMMITTEEEstablished on 14 December 2001Jawatankuasa PencalonanDitubuhkan pada 14 Disember 2001

Chairman / PengerusiTAN SRI DATUK ARSHAD AYUBIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

Members / AhliKUA HWEE SIMIndependent Non-Executive Director /Pengarah Bebas Bukan Eksekutif

HJ ESA BIN MAMEKNon-Independent Non-Executive Director /Pengarah Bukan Bebas Bukan Eksekutif

STOCK EXCHANGE LISTINGPenyenaraian Bursa Saham

The Main Board of the Kuala LumpurStock Exchange / Papan Utama BursaSaham Kuala Lumpur

1. TAN SRI DATO’ MUHAMMAD ALIHASHIMChairman / Pengerusi

2. ROZAN BIN MOHD SA’ATManaging Director / Pengarah Urusan

3. TAN SRI DATUK ARSHAD AYUBDirector / Pengarah

4. KUA HWEE SIMDirector / Pengarah

5. HJ ESA BIN MAMEKDirector / Pengarah

6. HALMI BIN JASMINDirector / Pengarah

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NBoard of DirectorsLembaga Pengarah

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Profile of the Board of DirectorsProfil Lembaga Pengarah

TAN SRI DATO’ MUHAMMAD ALI HASHIM

Chairman / PengerusiMalaysian / Warganegara Malaysia

Aged / Umur 56

Malaysia. He is the author of amanagement book entitled ‘MembujurLalu ...’ published in 1996.

He is a Council Member of MalaysianIndustrial Development Authority(MIDA), the President of the PasirGudang Local Authority and a Memberof Kolej Universiti Teknologi Tun HusseinOnn (KUiTTHO) Board of Directors.Currently, he is also the President ofthe Johor Football Association, thePresident of Malaysian Kite-FlyingCouncil and Chairman, Klinik WaqafAn-Nur, a charitable organisation.

Tan Sri is a Chairman of several otherpublic listed companies including Kulim(Malaysia) Berhad and KPJ HealthcareBerhad, which are JCorp’s subsidiarieslisted on the Main Board of KLSE. Healso sits on various boards ofsubsidiaries within JCorp Group.

He attended all three of the BoardMeetings held in the financial year2002 since his appointment.

He was appointed as the Chairman ofSindora Berhad on 1 August 2002. He had served as Chairman of SindoraBerhad previously from 1 August 1980till 22 February 2001. He graduatedfrom University of Malaya with aBachelor of Economics (Honours)degree in 1969 and participated inthe Senior Executive Programme,Stanford University, USA in 1985.

Presently, he is the Group ChiefExecutive of Johor Corporation (JCorp),the parent company of Sindora Berhad,since 1982. He is a Non-IndependentNon-Executive Director and theChairman of Remuneration Committeeof Sindora Berhad.

In 1994, Rotary Club Johor Bahrunamed him Entrepreneur of the Yearand the Malaysian Institute of Directorsnamed him Director of the Year in1995. On 19 August 2000, he wasconferred the Honorary Doctor ofManagement from Universiti Teknologi

beliau juga merupakan pengarang sebuah buku pengurusanbertajuk ‘Membujur Lalu ...’ yang telah diterbitkan padatahun 1996.

Beliau adalah Ahli Majlis Lembaga Pembangunan PerindustrianMalaysia (MIDA), Presiden Pihak Berkuasa Tempatan PasirGudang dan Ahli Lembaga Pengarah Kolej UniversitiTeknologi Tun Hussein Onn (KUiTTHO). Beliau jugamerupakan Presiden Persatuan Bolasepak Negeri Johor,Presiden Majlis Layang-Layang Malaysia dan Pengerusi, Klinik Waqaf An-Nur, sebuah pertubuhan amal.

Tan Sri merupakan Pengerusi kepada beberapa syarikat yangtersenarai di BSKL termasuk Kulim (Malaysia) Berhad dan KPJ Healthcare Berhad, selain menjadi pengarah di dalambeberapa buah syarikat anak yang lain dalam KumpulanJohor Corporation. Beliau telah menghadiri kesemua tigamesyuarat Lembaga Pengarah yang telah diadakan padatahun kewangan 2002 sejak perlantikannya.

Beliau telah dilantik sebagai Pengerusi Sindora Berhad pada1 Ogos 2002. Beliau sebelum ini pernah berkhidmat sebagaiPengerusi Sindora Berhad dari 1 Ogos 1980 hingga 22 Februari 2001. Beliau berkelulusan Ijazah Sarjana MudaEkonomi (Kepujian) dari Universiti Malaya pada tahun 1969dan telah menghadiri Program Eksekutif Kanan, StanfordUniversity, Amerika Syarikat pada tahun 1985.

Beliau merupakan Ketua Eksekutif Kumpulan JohorCorporation, syarikat induk Sindora Berhad, sejak tahun 1982.Beliau adalah Pengarah Bukan Bebas Bukan Eksekutif danmerupakan Pengerusi Jawatankuasa Imbuhan Sindora Berhad.

Beliau telah dianugerahkan Usahawan Terbaik oleh KelabRotary Johor Bahru pada tahun 1994 dan kemudiannya telahdipilih sebagai Pengarah Terbaik oleh Institut Pengarah-pengarah Malaysia pada tahun 1995. Kecemerlangan beliaudalam pengurusan telah diiktiraf apabila beliau terpilih untukmenerima anugerah Ijazah Doktor Kehormat Pengurusan dariUniversiti Teknologi Malaysia pada 19 Ogos 2000. Selain itu,

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He was appointed to the Board on 23 May 2002 and appointed as theManaging Director of Sindora Berhadon 1 September 2002. He holds aBachelor of Economics (Honours)majoring in Statistics from UniversitiKebangsaan Malaysia. He started hiscareer in 1983 as an AdministrativeOfficer in Corporate Planning andResearch Department of JohorCorporation before being seconded asan Operations Manager in SergamBerhad (a subsidiary of JohorCorporation) in 1986. From 1988 to1993, he was appointed as theExecutive Director of severalsubsidiaries in Johor CorporationGroup and in 1994, he was appointedas the General Manager of JohorCorporation’s Tourism Division beforeassuming the post as Chief Executiveof the Division in 1996. Prior to hisappointment as the Managing Directorof Sindora Berhad, he served as theSenior General Manager, BusinessDevelopment of Johor Corporationfrom 1999 until August 2002. Heattended three of the Board ofDirectors Meetings held for thefinancial year 2002 since hisappointment.

Beliau telah dilantik sebagai AhliLembaga Pengarah Sindora Berhadpada 23 Mei 2002 dan mulamemegang jawatan sebagai PengarahUrusan Sindora Berhad bermula 1 September 2002. Beliauberkelulusan Ijazah Sarjana MudaEkonomi (Kepujian) denganpengkhususan dalam bidang Statistikdari Universiti Kebangsaan Malaysia.Beliau memulakan kerjaya di JohorCorporation pada tahun 1983 sebagaiPegawai Tadbir di JabatanPerancangan Korporat danPenyelidikan sebelum dipinjamkansebagai Pengurus Operasi SergamBerhad, syarikat anak JohorCorporation pada tahun 1986. Beliautelah dilantik sebagai PengarahEksekutif beberapa syarikat anak JohorCorporation dari 1988 hingga 1993dan seterusnya telah dilantikmemegang jawatan Pengurus BesarBahagian Pelancongan JohorCorporation pada 1994. Kemudiannya,beliau telah dilantik sebagai KetuaEksekutif Bahagian berkenaan pada1996. Beliau telah berkhidmat sebagaiPengurus Besar Kanan PembangunanBisnes, Johor Corporation bermula dari1999 hingga Ogos 2002, sebelumdilantik sebagai Pengarah UrusanSindora Berhad. Beliau telahmenghadiri tiga Mesyuarat LembagaPengarah bagi tahun 2002 sejakperlantikannya.


Malaysian / Warganegara MalaysiaAged / Umur 43

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TAN SRI DATUK ARSHAD AYUBDirector / Pengarah


Agriculture from 1979 to 1981 andMinistry of Land and RegionalDevelopment from 1981 to 1983. He is presently the Chairman ofMalaysian Rubber Export PromotionCouncil (MREPC) and Vice Chairmanof MOCCIS. He is also the Chairmanof Audrey International Berhad,Tomypak Holdings Berhad and MITHoldings Berhad, Deputy Chairman ofRumpun Hijau Capital Berhad, Directorof Kulim (Malaysia) Berhad, KPJHealthcare Berhad, Nationwide ExpressCourier Services Berhad and Top GloveCorporation Berhad. He also sits asthe Chairman of Audit Committee,Nomination Committee and a memberof Remuneration Committee ofSindora Berhad. He is the Chairmanof Audit Committee of KPJ HealthcareBerhad, Pelaburan Johor Berhad andKulim (Malaysia) Berhad, as well as amember of Investment Committee,Pelaburan Johor Berhad. He is amember of the Board of University ofMalaya and Kolej Ugama Sultan ZainalAbidin (KUSZA). He was a member ofHarun’s Salary Commission. Heattended four Board Meetings held inthe financial year 2002.

He is an Independent Non-ExecutiveDirector appointed to the Board on 7 July 1995. He graduated with aDiploma in Agriculture from Collegeof Agriculture, Serdang, Selangor andpursued his Bachelor of Science(Honours) Degree in Economics withStatistics at the University College ofWales, Aberystwyth in United Kingdomin 1958 and obtained Diploma inBusiness Administration fromManagement Development Institute(IMEDE), Lausanne, Switzerland in1964. He had previously served as amember of numerous bodies in thefields of Education, Planning, Finance,Regional Development Authorities,Agriculture and Sciences. He was thefirst Director of MARA Institute ofTechnology (ITM) from 1965 to 1975.His work experience is extensive,having held senior positions in variousMinistries in the MalaysianGovernment from 1958 to 1983including as Deputy Governor of BankNegara Malaysia from 1975 to 1977,Deputy Director General of EconomicPlanning Unit (EPU) from 1977 to1978, and Secretary General of threeMinistries namely, Ministry of PrimaryIndustries in 1978, Ministry of

Selain itu beliau juga pernah menjadi Ketua Setiausaha kepadatiga kementerian iaitu Kementerian Perusahaan Utama padatahun 1978, Kementerian Pertanian dari tahun 1979 hingga1981 dan Kementerian Tanah dan Pembangunan Wilayahdari tahun 1981 hingga 1983. Kini beliau merupakanPengerusi Majlis Promosi Eksport Getah Malaysia (MREPC)dan Timbalan Pengerusi MOCCIS. Beliau juga adalah PengerusiAudrey International Berhad, Tomypak Holdings Berhad danMIT Holdings Berhad, Timbalan Pengerusi Rumpun HijauCapital Berhad, Pengarah Kulim (Malaysia) Berhad, KPJHealthcare Berhad, Nationwide Express Courier ServicesBerhad dan Top Glove Corporation Berhad. Beliau jugaadalah Pengerusi Jawatankuasa Audit dan JawatankuasaPenamaan serta ahli Jawatankuasa Imbuhan Sindora Berhad.Selain itu beliau juga merupakan Pengerusi JawatankuasaAudit bagi KPJ Healthcare Berhad, Pelaburan Johor Berhaddan Kulim (Malaysia) Berhad serta Ahli JawatankuasaPelaburan, Pelaburan Johor Berhad.

Beliau ialah Ahli Lembaga Pengarah Universiti Malaya danAhli Majlis Kolej Ugama Sultan Zainal Abidin (KUSZA). Beliaujuga pernah menjadi Ahli Suruhanjaya Gaji Harun. Beliautelah menghadiri empat mesyuarat Lembaga Pengarah yangdiadakan pada tahun kewangan 2002.

Beliau adalah Pengarah Bebas Bukan Eksekutif dan telahdilantik menganggotai Lembaga Pengarah Sindora Berhadpada 7 Julai 1995. Beliau memperolehi Diploma Pertaniandari Kolej Pertanian, Serdang, Selangor dan kemudiannyamelanjutkan pengajian ke University College of Wales,Aberystwyth, United Kingdom dan dikurniakan Ijazah SarjanaMuda Sains (Kepujian) Ekonomi dan Statistik pada tahun1958. Beliau juga dianugerahkan Diploma PentadbiranPerniagaan pada tahun 1964 oleh Management DevelopmentInstitute (IMEDE), Lausanne, Switzerland. Beliau telah menjadiahli kepada pelbagai badan yang berkaitan denganPerdagangan dan Industri, Perancangan, Kewangan, LembagaKemajuan Wilayah, Pertanian dan Sains. Beliau merupakanPengarah pertama Institut Teknologi MARA (ITM) dari tahun1965 hingga 1975. Beliau pernah memegang beberapajawatan penting dalam beberapa Kementerian di dalamKerajaan Malaysia dari tahun 1958 hingga 1983, iaituTimbalan Gabenor Bank Negara Malaysia dari tahun 1975hingga 1977 dan Timbalan Ketua Pengarah Unit PerancangEkonomi (EPU) dari tahun 1977 hingga 1978.

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KUA HWEE SIMDirector / PengarahMalaysian / Warganegara MalaysiaAged / Umur 49

since 1980. She also sits as a Directorin Johor Land Berhad and Kulim (M)Berhad, as well as several companieswithin Johor Corporation Group,involved in the hospitality business. As a Professional Accountant, sheprovides financial training tocompanies within Malaysia. Sheattended three of the Board ofDirectors Meetings held in thefinancial year 2002 since herappointment.

She is an Independent Non-ExecutiveDirector appointed to the Board ofSindora Berhad on 1 August 2002.She is a member of Audit Committee,Nomination Committee andRemuneration Committee of SindoraBerhad. She is an Accountant byprofession and has been a Fellow ofthe Chartered Association of CertifiedAccountant, United Kingdom since1984. She has been a RegisteredAccountant in Malaysia and Singapore

turut dilantik sebagai pengarah di duabuah syarikat tersenarai di BursaSaham Kuala Lumpur iaitu Johor LandBerhad dan Kulim (M) Berhad disamping beberapa syarikat di dalamKumpulan Johor Corporation yangterlibat di dalam industri hospitaliti.Sebagai seorang Akauntan Profesional,beliau turut memberikan LatihanKewangan kepada syarikat-syarikat diMalaysia. Beliau telah menghadiri tigaMesyuarat Lembaga Pengarah dalamtahun 2002 sejak perlantikannya.

Beliau merupakan Pengarah BebasBukan Eksekutif yang dilantikmenganggotai Lembaga PengarahSindora Berhad pada 1 Ogos 2002.Beliau juga adalah Ahli JawatankuasaAudit, Jawatankuasa Imbuhan danJawatankuasa Pencalonan SindoraBerhad. Beliau adalah seorangakauntan dan telah menjadi ‘Fellow’‘Chartered Association of CertifiedAccountant’, United Kingdom sejaktahun 1984. Beliau juga seorangAkauntan Berdaftar di Malaysia danSingapura sejak tahun 1980. Beliau

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Controller of Johor Corporation’sDevelopment Division in 1991. In1992, he was appointed as theGeneral Manager of Total ProjectManagement Sdn Bhd (a subsidiary ofJohor Corporation) and the ChiefExecutive, Property ManagementDivision of Johor Corporation. He wasappointed as the Managing Directorof Total Project Management Sdn Bhdin 1993 prior to his appointment asthe Chief Executive, Sports Division in1997. Currently, he is the SeniorGeneral Manager, Charitable BusinessOrganisations of Johor Corporation.

He is a Non-Independent Non-Executive Director and appointed tothe Board of Sindora Berhad and theNomination Committee on 1 January 2003. He holds a Bachelorof Economics and Advance Diploma inComputer Science from UniversitiKebangsaan Malaysia. He started hiscareer with Johor Corporation in 1978as an Administrative/Planning Officerat Internal Audit Department andserved in various positions at theAdministration/Personnel Departmentbefore transferring to FinanceDepartment in 1990. He wasappointed as the Acting Financial

sebagai Pemangku PengawalKewangan Bahagian PembangunanJohor Corporation pada 1991. Padatahun 1992, beliau telah dilantiksebagai Pengurus Besar, Total ProjectManagement Sdn Bhd (syarikat anakJohor Corporation) dan merupakanKetua Eksekutif Bahagian PengurusanHartanah Johor Corporation.Seterusnya beliau telah dilantiksebagai Pengarah Urusan, Total ProjectManagement Sdn Bhd pada tahun1993 sebelum dilantik sebagai KetuaEksekutif, Bahagian Sukan pada 1997.Beliau kini menjawat jawatan sebagaiPengurus Besar Kanan, Bisnes AmalJohor Corporation.

Beliau adalah Pengarah Bukan BebasBukan Eksekutif. Beliau telah dilantiksebagai Ahli Lembaga PengarahSindora Berhad dan Ahli JawatankuasaPencalonan bermula 1 Januari 2003.Beliau berkelulusan Ijazah SarjanaMuda Ekonomi dan memiliki DiplomaLanjutan Sains Komputer dariUniversiti Kebangsaan Malaysia. Beliaumula menyertai Johor Corporationpada tahun 1978 sebagai PegawaiTadbir/Perancang di Jabatan AuditDalam. Beliau kemudiannya menjawatbeberapa jawatan di JabatanPentadbiran/Perjawatan sebelumditugaskan di Jabatan Kewangan pada1990. Beliau seterusnya dilantik

HJ ESA BIN MAMEKDirector / PengarahMalaysian / Warganegara MalaysiaAged / Umur 50

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He is a Non-Independent Non-Executive Director appointed to theBoard of Sindora Berhad on 20 February 2003. He is a member ofthe Audit Committee of SindoraBerhad with effect from hisappointment. He holds a Bachelor inBusiness Administration majoring inComputer Information System fromWest Texas State University, USA. Hestarted his career in 1988 as anExecutive in Johor Corporation beforetaking up the same post in MetroParking (M) Sdn Bhd (Metro) in 1991.He was then promoted to a branchmanager in 1992. He became Metro’sGroup General Manager in September1997 prior to his appointment as theGroup Managing Director in April2000. He currently sits as a Chairmanof JCorp Intrapreneur (M) Berhad.

Beliau merupakan Pengarah BukanBebas Bukan Eksekutif. Beliau telahdilantik menganggotai LembagaPengarah Sindora Berhad pada 20 Februari 2003. Beliau adalah AhliJawatankuasa Audit Sindora Berhadberkuatkuasa dari tarikhperlantikannya. Beliau memiliki IjazahSarjana Muda Pentadbiran Perniagaandengan pengkhususan SistemMaklumat Komputer dari West TexasState University, Amerika Syarikat.Kerjaya beliau bermula pada tahun1988 sebagai Eksekutif di JohorCorporation sebelum bertugas sebagaiEksekutif di Metro Parking (M) SdnBhd (Metro) pada tahun 1991. Padatahun 1992 beliau telah dilantiksebagai Pengurus Cawangan danseterusnya dilantik sebagai PengurusBesar Kumpulan Metro bermulaSeptember 1997. Beliau kemudiannyatelah dilantik sebagai Pengarah UrusanKumpulan Metro bermula pada April2000. Beliau juga kini merupakanPengerusi JCorp Intrapreneur (M)Berhad.

HALMI BIN JASMINDirector / Pengarah


None of the Directors has any family relationship with anyDirector and/or major shareholder of Sindora Berhad andhave no personal interest in any business arrangementinvolving Sindora Berhad. They have no convictions for anyoffences within the past 10 years.Tidak seorang pun daripada Pengarah yang dilantik olehSindora Berhad mempunyai sebarang hubungankekeluargaan dengan lain-lain Pengarah dan/atau pemegangsaham utama Sindora Berhad. Mereka tidak mempunyaikepentingan peribadi dalam sebarang urusan perniagaanyang melibatkan Sindora Berhad dan tidak pernahdisabitkan dengan sebarang kesalahan jenayah dalamtempoh 10 tahun yang lalu.

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Management TeamKumpulan Pengurusan


LUKMAN BIN HJ ABU BAKARGeneral Manager / Pengurus Besar

AB. RASHID BIN HJ BUKHAIRAHSenior Manager / Pengurus Kanan

Management Information Technology, Human Resource and

Administration, Training and Quality

Pengurusan Teknologi Maklumat, Tenaga Insan dan

Pentadbiran, Latihan dan Kualiti

ABU BAKAR BIN MOHD AWISenior Manager / Pengurus Kanan

Logging, Mouldings Production and Maintenance

Pembalakan, Pengeluaran Kayu Kumai dan Selenggaraan

ROSNAH BINTI BASOKManager / Pengurus

Finance

Kewangan

HEIKAL BIN ISMAILManager / Pengurus

Corporate and Investment

Korporat dan Pelaburan

KHAIRUDDIN BIN SALLEHOOperations and Marketing Manager /

Pengurus Operasi dan Pemasaran

Marketing and Furniture Production

Pemasaran dan Pengeluaran Perabot

ZAINAL ABIDIN BIN SHAMSUDDINManager / Pengurus

Human Resource and Administration

Tenaga Insan dan Pentadbiran

SUHATI BIN KABANManager / Pengurus

Internal Audit

Audit Dalam

ZURAINI BINTI MOHD YUSOFDeputy Manager / Timbalan Pengurus

Business Development and Investment

Pembangunan Bisnes dan Pelaburan

NOR RAHMAT BIN ABDUL JALILDeputy Manager / Timbalan Pengurus

Sawmilling

Pengeluaran Kayu Bergergaji

MARIYAM BINTI MOHD YUSOFDeputy Manager / Timbalan Pengurus

Corporate and Business Development

Korporat dan Pembangunan Bisnes

Corporate StructureStruktur Korporat

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SINDORA BERHAD(A Member of the Johor Corporation Group of Companies)

Company No.: 13418-K

100%

Sindora Furniture Sdn Bhd(196092-K)

Production of furniture, furniture components and doorsPengeluaran perabot, komponen perabot dan pintu

100%

Sindora Trading Sdn Bhd(189260-V)

Marketing of timber and wood based productsPemasaran kayu dan produk berasaskan kayu

100%

Sindora Wood Products Sdn Bhd(64789-V)

Production of mouldings, laminated timber products, scantlings,rubberwood treatment and kiln dryingPengeluaran kayu kumai, produk kayu berlaminasi, berutiberlapis, pengawetan kayu getah dan pengeringan kayu

100%

Sindora Development Sdn Bhd(91292-W)

DormantTidak aktif

100%

Sindora Timber Products Sdn Bhd(132848-D)

Ceased operationsBerhenti operasi

Logging, sawmilling, tropical timbertreatment, oil palm and rubber plantations,

palm oil processing and portfolio investment.

Pembalakan, pengeluaran kayu bergergaji,pengawetan kayu tropika,

perladangan kelapa sawit dan getah,pemprosesan minyak sawit serta pelaburan

portfolio.

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Corporate StatementPenyata Korporat

TAN SRI DATO’ MUHAMMAD ALI HASHIMChairman / Pengerusi


On behalf of the Board of Directors, it is our great pleasureto present the Annual Report and Audited Accounts ofSindora Berhad (the Company) and its Group of Companies(the Group) for the financial year ended 31 December2002.

Bagi pihak LembagaPengarah, kami amatberbesar hati untukmembentangkan LaporanTahunan dan AkaunBeraudit Sindora Berhad(Syarikat) dan Syarikat-syarikat di dalamKumpulannya (Kumpulan)bagi tahun kewanganberakhir 31 Disember2002.

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FINANCIAL PERFORMANCE

For the year under review, the Group registered animprovement in revenue by 23.18 percent to RM56.59million from RM45.94 million in 2001. The Group hadturned around in 2002 with profit before tax of RM2.36million against a loss before tax of RM5.89 million in 2001.Contribution from the timber operations rose 18.28 percentto register earnings of RM10.74 million in 2002 againstRM9.08 million in 2001.

The Group’s palm oil business continued to record strongachievements with revenue contribution of RM45.84 millionin 2002, an increase of 24.4 percent compared withRM36.86 million in 2001. FFB production from LadangSindora and Ladang Sg. Simpang Kiri increased by 4.4percent from 106,498 tonnes in 2001 to 111,218 tonnes in2002. The high contribution from this sector was largely dueto an increase of the average CPO price from RM894 permetric tonne in 2001 to RM1,368 in 2002.

The Group remained financially sound since it still maintainedzero gearing position and the shareholders’ funds registereda healthy balance of RM199.82 million as at 31 December2002. The value of assets stood at RM205.67 million andthe Net Tangible Assets per ordinary share was RM2.08.Overall, the Group’s operations managed to generate positivecashflows while the Group’s Balance Sheet remained stable.

PRESTASI KEWANGAN

Bagi tahun kewangan 2002, Kumpulan telah mencatatkanpeningkatan perolehan sebanyak 23.18 peratus kepadaRM56.59 juta berbanding RM45.94 juta dalam tahun 2001.Kumpulan telah berjaya mencatat keuntungan sebelum cukaiberjumlah RM2.36 juta pada tahun 2002 berbanding dengankerugian sebelum cukai berjumlah RM5.89 juta dalam tahun2001. Perolehan operasi perkayuan telah meningkat sebanyak18.28 peratus kepada RM10.74 juta dalam tahun 2002berbanding RM9.08 juta yang dicatatkan dalam tahun 2001.

Bisnes kelapa sawit Kumpulan terus memberikan sumbanganyang mantap dalam tahun 2002 dengan jumlah perolehansebanyak RM45.84 juta, peningkatan sebanyak 24.4 peratusberbanding RM36.86 juta dalam tahun 2001. Pengeluaranbuah tandan segar (BTS) Ladang Sindora dan Ladang Sg.Simpang Kiri telah meningkat sebanyak 4.4 peratus dari106,498 tan dalam tahun 2001 kepada 111,218 tan dalamtahun 2002. Perolehan yang lebih tinggi dari sektor inisebahagian besarnya adalah disebabkan oleh kenaikanpurata harga minyak sawit mentah (MSM) dari RM894 setanmetrik dalam tahun 2001 kepada RM1,368 dalam tahun 2002.

Kumpulan berjaya memperkukuhkan kedudukankewangannya dan berupaya meneruskan operasi tanpapinjaman. Dana pemegang saham telah mencatatkan bakiyang memberangsangkan sebanyak RM199.82 juta pada 31 Disember 2002. Nilai aset Kumpulan pula berjumlahRM205.67 juta manakala Aset Ketara Bersih bernilai RM2.08sesaham. Kumpulan secara keseluruhannya telah berjayamengekalkan aliran tunai yang positif di samping kedudukanLembaran Imbangan yang stabil.

Corporate Office at Menara Ansar, Johor Bahru.

Pejabat Korporat di Menara Ansar, Johor Bahru.

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MALAYSIAN AND GLOBAL ECONOMICOVERVIEW

The Malaysian economy grew at 4.2 percent in 2002 afterregistering 5.6 percent growth during the final quarter of2002. Much of the growth was driven by domestic demandand reinforced by the performance of the export sector.Growth in domestic demand was driven by strong consumerspending, continued recovery in investment activity and theexpansion in public sector expenditure.

Exports continued to expand, registering strong annualgrowth of 9.6 percent in 2002. Exports of manufacturedproducts increased by 5.1 percent with strong growth insemiconductors, chemical products, wood products andhousehold electrical appliances. In line with the movementsof the US Dollar, the Ringgit depreciated against majorcurrencies and most regional currencies in 2002. However,the Ringgit remained close to its fair value and the Ringgitpeg continued to accord certainty and stability for businessesin an environment of greater volatility in global exchangerates and financial markets.

Continuous productinnovations will be givenmore emphasis.

Inovasi produk yangberterusan akan sentiasadiberi penekanan.

TINJAUAN EKONOMI MALAYSIA DANDUNIA

Ekonomi Malaysia telah berkembang sebanyak 4.2 peratus disepanjang tahun 2002 di mana suku terakhir merekodkanpertumbuhan pada kadar 5.6 peratus. Secara amnya,pertumbuhan ini banyak didorong oleh permintaan domestikdan diperkukuhkan lagi oleh prestasi sektor eksport. Kuasamembeli pengguna yang tinggi, pemulihan yang berterusandi dalam aktiviti pelaburan dan pertambahan perbelanjaanoleh sektor awam telah menjadi pemangkin kepadapertumbuhan dalam negara.

Eksport mencatatkan pertumbuhan tahunan yang kukuhpada tahap 9.6 peratus dalam tahun 2002, di mana eksportproduk perkilangan telah meningkat sebanyak 5.1 peratusdengan pertumbuhan yang memberangsangkan bagibarangan semikonduktor, bahan kimia, produk berasaskankayu serta barangan elektrik.

Ringgit mengalami penyusutan berbanding matawang utamadunia dan juga kebanyakan matawang negara serantaudalam tahun 2002. Namun demikian, nilai Ringgit masihkekal pada tahap yang wajar di mana penetapan nilaiRinggit terus memberi kelebihan dan kestabilan kepadaoperasi bisnes walaupun persekitaran pasaran kewanganglobal semakin tidak menentu.


Since late 2001, a global recovery had been under way withtrade and industrial production picking up across the globe.However, concerns about the pace and sustainability of therecovery have risen significantly. The recovery is expected tocontinue but global growth in 2003 will be weaker and therisks to the outlook are primarily on the downside.

The world’s fragile economies could face greater uncertaintiesdepending on the long-term spill over effects of the waragainst Iraq. At the same time, the uncertainties created bythe threat of the Severe Acute Respiratory Syndrome (SARS)phenomenon would also have its unpredictable direct andindirect impact on the economic environment.

The Malaysian economic scenario is expected to remainpositive against the backdrop of an improvement in theoverall demand, pump-priming initiatives by the Governmentand a pick-up in domestic economic financing activities.However, GDP may slide by a marginal 1.6 percent in theevent global dynamics take a turn for the worse.

TIMBER INDUSTRY

The Group’s traditional core business in timber, which in thepast had been a major contributor to corporate growth, hasshown signs of decline due to extreme challenges faced bythe industry worldwide. Even though the price of logs showeda slight increase as supply of good quality logs locally andfrom Indonesia became scarcer, demand for wood relatedproducts continued relatively on a downward trend.

Timber industry’s contribution, which was previously one ofMalaysia’s main export earners, had declined over the pastyears. It will be noted that the export of timber related productscontributed only 3.8 percent of GDP in 2002, a substantialdecline in trend, compared with 7.7 percent in 1992.

OIL PALM INDUSTRY

The oil palm industry recorded significant recovery in 2002despite the weak global economy. The marginal increase inthe production of palm oil and exports amidst tight supplyin the global oils and fats industry had pushed up the priceof Crude Palm Oil (CPO) sharply by 52 percent over theprevious year to RM1,355 per tonne.

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Meskipun di akhir tahun 2001 ekonomi dunia telahmemperlihatkan tanda-tanda pemulihan dengan peningkatansecara global dalam perdagangan dan pengeluaranperindustrian, namun terdapat kebimbangan tentang tahapserta kemampuannya untuk terus bertahan. Pertumbuhanglobal dalam tahun 2003 dijangka agak lembap dengansenario masa depan yang lebih sukar.

Persekitaran ekonomi dunia yang lemah ini mungkin akanlebih sukar, bergantung kepada kesan jangka panjangpeperangan di Iraq. Pada masa yang sama, ketidaktentuanini juga turut diburukkan lagi dengan ancaman wabakSindrom Pernafasan Akut Yang Teruk (SARS), di mana iamungkin memberi kesan langsung dan tidak langsung yangsukar dijangka terhadap suasana ekonomi.

Berlandaskan pemulihan di dalam permintaan dalam negarasecara keseluruhan dan inisiatif pelaburan kewangan yangdilaksanakan oleh Kerajaan serta pengaktifan semula aktivitipembiayaan ekonomi di dalam negara, persekitaran ekonomiMalaysia diramal akan kekal positif sungguhpun KDNKdijangka menurun pada tahap 1.6 peratus sekiranya berlakusesuatu yang boleh memburukkan keadaan ekonomi global.

INDUSTRI PERKAYUAN

Meskipun bisnes perkayuan dahulunya merupakan bisnestradisi yang menjadi teras dan penyumbang utama kepadapertumbuhan korporat Kumpulan, namun ekoran dari pelbagaicabaran serta halangan yang dihadapi industri perkayuan diseluruh dunia, ia kini mengalami kemerosotan. Permintaanterhadap produk berasaskan kayu secara relatifnyamenunjukkan penurunan berterusan biarpun harga kayu balakmengalami peningkatan kesan dari kekurangan bekalan kayuberkualiti sama ada dari dalam negara ataupun dari Indonesia.

Justeru itu, sumbangan yang diperolehi dari industri perkayuanyang dahulunya merupakan salah satu hasil eksport utamaMalaysia turut mengalami penurunan sejak beberapa tahunkebelakangan ini. Hasil eksport bagi produk berasaskan kayuhanya berupaya menyumbang sebanyak 3.8 peratus kepadaKDNK dalam tahun 2002, satu penurunan yang ketaraberbanding 7.7 peratus yang dicatatkan pada tahun 1992.

INDUSTRI KELAPA SAWIT

Industri kelapa sawit telah mencatatkan pemulihan yangmemberangsangkan sungguhpun ekonomi dunia dalamtahun 2002 ternyata lembap. Peningkatan yang marginaldalam pengeluaran dan eksport minyak sawit di sampingbekalan yang terhad dalam industri minyak serta lelemakdunia telah menyebabkan lonjakan harga minyak sawitmentah (MSM) yang besar sehingga 52 peratus kepadaRM1,355 setan berbanding tahun sebelumnya.

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Unloading of Fresh Fruit Bunches (FFB) priorto steaming at Sindora palm oil mill.

Pusat pengumpulan Buah Tandan Segar (BTS)sebelum proses pengukusan di kilang minyaksawit Sindora.

Utilisation of woodworking machinery whichcan produce high quality products that arecompetitive in both local and export market.

Penggunaan mesin kerja kayu mampumenghasilkan produk berkualiti dan berdayasaing di pasaran tempatan danantarabangsa.

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The national production of CPO increased marginally by 0.89percent to 11.9 million tonnes from 11.8 million tonnesrecorded in 2001. This increase was contributed by theexpansion in matured area and a higher oil extraction rate (OER).

The total export of oil palm products increased marginally byabout 0.4 percent to 14.68 million tonnes compared to14.62 million tonnes in 2001. However, owing to the higherprices of oil palm products, the total export value of oil palmproducts increased by 38 percent to RM19.62 billion in 2002against RM14.22 billion in 2001. The major markets wereChina (1.8 million tonnes), India (1.7 million tonnes), EU (1.5million tonnes), Pakistan (1.1 million tonnes), Egypt (0.5million tonnes) and Japan (0.4 million tonnes). Togetherthese six countries accounted for 65 percent of total exportsof oil palm products by Malaysia. The competitive price ofpalm oil, liberalisation of export duties and the encouragementof counter trades by the Government had contributed to thehigher exports.

The performance of Malaysian palm oil industry is expectedto be sustained in 2003. The production of CPO is expectedto be around 12.2 million tonnes and export demand isforecasted to improve further arising from higher worlddemand and lower stocks of world oils and fats.

OPERATIONS REVIEWTIMBER OPERATIONS

The traditional primary products such as logs and sawntimber accounted for the major share of total turnover ofthe Group’s timber sector. The unfavourable externalenvironment, coupled with the weak timber commoditymarket especially for wood mouldings, furniture and doorsled to lower contribution from the Group’s timber sub-sector.

Oil palm seedlings at Ladang SungaiSimpang Kiri nursery ready for replantingprogramme.

Anak benih kelapa sawit di tapak semaianLadang Sungai Simpang Kiri sedia untukprogram penanaman semula.

Pengeluaran MSM negara telah mencatatkan peningkatansebanyak 0.89 peratus daripada 11.8 juta tan kepada 11.9juta tan yang dicapai dalam tahun 2002. Peningkatan iniadalah kesan dari pertambahan kawasan ladang boleh tuaiserta kadar perahan minyak (OER) yang lebih tinggi.

Jumlah eksport bagi produk berasaskan kelapa sawit telahmeningkat secara marginal pada kadar 0.4 peratus, kepada14.68 juta tan berbanding 14.62 juta tan yang dicatatkandalam tahun 2001. Namun begitu, disebabkan harga produkkelapa sawit adalah lebih tinggi, maka jumlah nilai eksportnyatelah meningkat sebanyak 38 peratus kepada RM19.62bilion dalam tahun 2002 berbanding RM14.22 bilion dalamtahun 2001. Antara pasaran utama produk ini termasuklahChina (1.8 juta tan), India (1.7 juta tan), Kesatuan Eropah(1.5 juta tan), Pakistan (1.1 juta tan), Mesir (0.5 juta tan)dan Jepun (0.4 juta tan). Kesemua enam negara ini telahmenyumbang 65 peratus dari jumlah keseluruhan nilaieksport produk kelapa sawit Malaysia. Kadar eksport yanglebih tinggi ini dipengaruhi oleh harga minyak sawit yanglebih kompetitif, duti eksport yang liberal serta galakantukaran dagangan yang dilaksanakan oleh Kerajaan.

Prestasi industri minyak sawit di Malaysia diramal akan dapatdikekalkan dalam tahun 2003. Pengeluaran MSM dijangkaberjumlah 12.2 juta tan dengan permintaan eksport diramalkanbertambah baik kesan dari permintaan dunia yang lebihtinggi di samping stok minyak dan lelemak dunia yang masihrendah.

TINJAUAN OPERASIOPERASI PERKAYUAN

Kayu balak dan kayu bergergaji merupakan produk tradisiyang utama, dan antara penyumbang terbesar kepadaperolehan sektor perkayuan Kumpulan. Namun, persekitaranbisnes yang kurang menggalakkan serta pasaran komoditikayu yang lemah terutamanya bagi produk kayu kumai,perabot serta pintu, telah menyebabkan sumbangan daripadasektor hiliran perkayuan Kumpulan terjejas teruk. Walau

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However, towards the middle of 2002, timber prices beganto stabilise due to export controls, initiated by the IndonesianGovernment.

The Group recorded revenues of RM10.74 million from timberoperations for the year ended 31 December 2002 againstRM9.08 million in 2001. Pre-tax loss was RM9.5 millioncompared to a loss before tax of RM6.04 million for thefinancial year 2001, mainly due to provision for diminutionin value of investment and subsidiaries.

Demand for timber products continued to be affected by theslowdown in the global economy and dumping activitiesfrom Indonesia’s major players due to the weak Rupiah. Theexcessive dumping also led to deterioration in market priceswith log prices reaching a record low in the first half of2002. However, subsequent regulatory control measuresimposed over the excessive dumping activities and betterglobal market demand improved the market environmenttowards the end of the financial year.

In light of the above, the Group has decided to totallyreview its strategic position in the timber business. Theimmediate focus would be in improving earnings and addingvalue. However, the long-term involvement will need to bere-evaluated in view of the fact that the external environmentposes strong long-term challenges to the overall timberindustry’s prospects.

OIL PALM PLANTATIONS AND MILL OPERATIONS

Plantation and palm oil mill operations registered an increasein turnover to RM45.84 million or 80.90 percent from theGroup’s total turnover compared to RM36.86 million recordedin 2001. The increase in average price of CPO from RM894per metric tonne in 2001 to RM1,368 per metric tonne in2002 was the major factor that contributed to the higherturnover. Profit from plantation and palm oil mill operationshad increased to RM6.16 million in 2002 compared withRM2.94 million in 2001.

bagaimanapun, harga kayu balak mula stabil menjelangpertengahan tahun 2002 hasil dari usaha yang dijalankanoleh Kerajaan Indonesia melalui kawalan eksport.

Kumpulan telah mencatatkan perolehan sebanyak RM10.74juta dari operasi perkayuan bagi tahun berakhir 31 Disember2002 berbanding RM9.08 juta dalam tahun 2001. Kerugiansebelum cukai berjumlah RM9.5 juta berbanding denganRM6.04 juta dalam tahun kewangan 2001 berpunca dariperuntukan rosotnilai pelaburan dan syarikat anak.

Kelembapan ekonomi dunia serta lambakan produk berasaskankayu oleh syarikat-syarikat utama dari Indonesia yangberpunca dari nilai Rupiah yang lemah telah menjejaskanpermintaan. Malah lambakan produk ini turut mengakibatkankejatuhan dalam harga pasaran di mana harga kayu balakmenjunam ke tahap paling rendah yang tidak pernahdirekodkan sebelum ini pada setengah tahun pertama 2002.Namun, langkah-langkah kawalan yang diwujudkan bagimengekang kegiatan lambakan yang berlebihan ini sertapermintaan pasaran global yang lebih baik telah dapatmemperbaiki suasana pasaran menjelang akhir tahunkewangan.

Berdasarkan senario industri perkayuan global yang semakinsukar dan mencabar, Kumpulan telah mengambil langkahmengkaji semula secara menyeluruh kedudukan strategiknyadi dalam bisnes perkayuan, di mana tumpuan khusus adalahke arah meningkatkan nilai dan perolehan. Namun,penglibatan Kumpulan dalam tempoh jangka panjang akandinilai semula memandangkan terdapatnya cabaran yangsemakin menyukarkan prospek industri perkayuan ini secarakeseluruhannya.

OPERASI PERLADANGAN DAN KILANG MINYAK SAWIT

Operasi perladangan dan kilang minyak sawit telahmencatatkan peningkatan perolehan kepada RM45.84 jutaatau 80.90 peratus dari keseluruhan perolehan Kumpulanberbanding RM36.86 juta yang dicatatkan dalam tahun2001. Peningkatan harga purata MSM dari RM894 setanmetrik dalam tahun 2001 kepada RM1,368 setan metrik dalamtahun 2002 merupakan faktor utama yang menyumbangkepada pertambahan perolehan tersebut. Malah, keuntungandari operasi perladangan dan kilang minyak sawit juga telahmeningkat kepada RM6.16 juta dalam tahun 2002 berbandingRM2.94 juta dalam tahun 2001.

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Platform and bund system implemented atswampy area, Sungai Simpang Kiri Estate.

Sistem platform dan “bund” dilaksanakan di kawasan berpaya, Ladang Sungai Simpang Kiri.

General view of Sindora palm oil millcomplex.

Pandangan umum kompleks kilang minyaksawit.

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Operasi di Ladang Sindora dan Ladang Sg. Simpang Kiritelah mencatatkan peningkatan pengeluaran buah tandansegar (BTS) sebanyak 4.4 peratus kepada 111,218 tan metrikberbanding 106,498 tan metrik dalam tahun 2001.Bagaimanapun, Ladang Sg. Simpang Kiri mencatatkanpengeluaran BTS yang rendah iaitu pada kadar 18.97 tanmetrik sehektar setahun jika dibandingkan dengan LadangSindora yang menunjukkan kadar pengeluaran sebanyak 24.37tan metrik sehektar setahun, berpunca dari usia tanamannyayang telah mencapai peringkat penanaman semula.

Pada tahun 2002, kilang minyak sawit Sindora telahmemproses sejumlah 182,796 tan metrik BTS, di manaladang milik Kumpulan telah menyumbang 60.8 peratus,manakala 39.2 peratus lagi diperolehi dari sumber luar.Operasi kilang minyak sawit telah mencatatkan peningkatandalam pengeluaran MSM dari 33,518 tan metrik dalamtahun 2001 kepada 34,301 tan metrik dalam tahun 2002,manakala pengeluaran isirong telah meningkat sebanyak 7.0peratus kepada 11,453 tan metrik berbanding 10,704 tanmetrik yang dihasilkan dalam tahun 2001. Kadar OER sertakadar pengeluaran isirong (KER) telah mencatatkan prestasimasing-masing sebanyak 18.76 peratus dan 6.26 peratus.

PENYUSUNAN SEMULA KORPORAT DANBISNESINTRAPRENEUR VENTURE SEBAGAI BISNES TERASMASA DEPAN

Meskipun tahun 2002 telah menyaksikan peningkatan yangketara dalam perolehan serta keuntungan berbanding tahun2001, namun prestasi sektor perkayuan yang kurang


Printing of statements and bills for POBM’scorporate clients.

Aktiviti percetakan penyata dan bil untukpelanggan korporat POBM.

The oil palm plantation operations both at Sindora Estateand Sg. Simpang Kiri Estate recorded an increase of freshfruit bunches (FFB) production of 4.4 percent to 111,218metric tonnes against 106,498 metric tonnes recorded in2001. Sg. Simpang Kiri Estate registered a lower FFBproduction of 18.97 metric tonnes per hectare per yearcompared with Sindora Estate, which recorded 24.37 metrictonnes per hectare per year due to the palms reachingreplanting stage.

For the year 2002, Sindora’s palm oil mill processed a totalof 182,796 metric tonnes FFB of which the Group’s estatescontributed 60.8 percent and 39.2 percent was sourcedexternally. The palm oil mill operations registered an increasein CPO production from 33,518 metric tonnes in 2001 to34,301 metric tonnes in 2002 whilst the palm kernelproduction recorded an increase of 7.0 percent to 11,453metric tonnes against 10,704 metric tonnes registered in2001. The OER and kernel extraction rate (KER) were 18.76percent and 6.26 percent respectively.

CORPORATE AND BUSINESSRESTRUCTURINGINTRAPRENEUR VENTURE AS FUTURE CORE BUSINESS

Despite the significant increase in revenue and profitability in2002 compared with 2001, the lacklustre performance ofthe timber sector and its uncertain future had made it

Inserting process of printed materials.

Proses pengisian bahan bercetak.

memberangsangkan serta masa depannya yang tidakmenentu menyebabkan Kumpulan mengambil inisiatifmengkaji semula secara menyeluruh terhadap model danstrategi bisnesnya untuk memastikan perkembangan korporatsecara berterusan. Sumbangan dari operasi perkayuansemakin berkurangan kepada 18.98 peratus dari keseluruhanpendapatan dalam tahun 2002 dan terus-menerus mencatatkankerugian. Justeru itu, adalah jelas bahawa Sindora perlumencari hala tuju yang baru dengan mengkaji semula aktivitiperkayuan sebagai aktiviti utama Kumpulan serta mengenalpasti peluang-peluang bisnes baru agar ia kekal relevan,berterusan meningkatkan nilai serta menjana kekayaan.

Sektor perladangan pula terus memberikan sumbangan yangbesar kepada perolehan serta aliran tunai yang amatdiperlukan oleh Kumpulan. Namun demikian, penurunandalam prestasi kewangan Kumpulan dalam tempoh beberapatahun kebelakangan ini telah memberikan gambaran yangjelas akan pergantungan Syarikat terhadap operasi perladanganserta kilang minyak sawit. Lantaran itu, bagi mempelbagaikanasas pendapatan dan untuk mengelakkan pergantunganterhadap operasi perladangan serta kilang minyak sawit,langkah segera perlu diambil memandangkan harga MSMbanyak bergantung kepada keadaan pasaran yang sukar,permintaan yang tidak menentu serta harga yang tidak stabildi peringkat antarabangsa.

Bagi mengurangkan kesan turun naik harga komoditi, Syarikattelah memulakan usaha korporat untuk melaksanakan modelbisnes baru yang lebih dikenali sebagai “Intrapreneur Venture”bagi meningkatkan perolehan dan pulangan. Pelaksanaannyaadalah berteraskan kepada pengambilalihan beberapa syarikatyang berdayamaju yang berlandaskan keusahawanan bagitujuan pertumbuhan dan perkembangan di masa hadapan.Model bisnes baru ini telahpun diperkenalkan pada bulanOgos 2002. Melalui konsep bisnes yang baru ini, SindoraBerhad telahpun mengenal pasti beberapa syarikat yangtelah mempamerkan keupayaan pengurusan yang mantap,mencatatkan keuntungan dan mempunyai asas serta prospekbisnes yang baik yang dapat memberikan pulangan pelaburanyang tinggi dalam tempoh jangka panjang.

imperative for the Group to conduct a total review of thebusiness model and strategies critical for corporate growth.The contribution from timber operations dwindled to 18.98percent of total revenue in 2002 and registered continuouslosses. It is apparent, therefore, that Sindora has to chart anew course, review timber as one of the Group’s core businessactivities, and identify new business opportunities if it is toremain relevant, continue to add value and generate wealth.

The plantation sector continues to contribute greatly towardsmuch needed revenues and cashflows. However, thedeclining trend of the Group’s financial performance duringthe last several years underlined the Company’s dependencyon the contribution from oil palm and mill operations. Thissituation had therefore called for an immediate step todiversify revenue base and avoid dependency on plantationand palm oil mill operations as the CPO is primarilysubjected to difficult market conditions, characterised byunstable international demand and prices.

To cushion the impact of the ups and downs of the primarycommodity prices, the Company has set in motion acorporate exercise to apply a new business model, formallytermed “Intrapreneur Venture” to improve earnings andreturns, built around acquiring a number of entrepreneur-driven businesses, for future growth and expansion. Thisnew business model was initiated in August 2002. Throughthis new business concept, Sindora Berhad had identified,for acquisition, several companies that have shown strongmanagement capabilities, profitability and fundamentallysound business prospects for long-term investment returns.

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Sorting process of printed materialsaccording to postcodes before delivery.

Proses pengasingan bahan bercetak mengikutposkod kawasan sebelum penghantaran.

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The Intrapreneur Venture concept is modelled after one ofthe top blue chip companies listed in the New York StockExchange, U.S., namely Berkshire-Hathaway, Inc. This companyadvocated series of acquisitions of growth companies indiversified sectors with emphasis on simple business activitiesthat are easy to understand, have excellent long-term businessprospects, strong management capabilities and consistentearnings. All of the acquisitions were implemented onfriendly basis, generally with the previous owners retaining aminority stake and continuing to manage the companies.

Based on the above model, Sindora Berhad’s IntrapreneurVenture concept involves the acquisitions of up to a maximumshareholding of 75 percent with the remaining 25 percentbeing retained by the entrepreneur-managers. Theseentrepreneur-managers are called “Intrapreneurs” and aretherefore expected to continue to spearhead and grow theirrespective businesses. The model will include the setting upof structures and systems, and the establishment of acorporate culture that will enable the Intrapreneurs tooperate autonomously with reward and compensation basedon success at meeting performance and growth targets.

Konsep Intrapreneur Venture ini berasaskan model sebuahsyarikat yang kukuh dan terkemuka serta tersenarai di BursaSaham New York, Amerika Syarikat, iaitu Berkshire-Hathaway,Inc. Syarikat tersebut telah memulakan beberapa siripengambilalihan ke atas syarikat-syarikat yang berkembangmaju dan terlibat dalam pelbagai sektor dengan penekanankepada aktiviti bisnes yang ringkas dan mudah difahami disamping mempunyai prospek bisnes jangka panjang yangcemerlang, keupayaan pengurusan yang mantap sertamemberikan perolehan yang konsisten. Kesemuapengambilalihan tersebut telah dilaksanakan atas dasarsetiakawan, di mana pada amnya pemilik-pemilik asal terusmenguruskan syarikat dan mengekalkan pegangan minoritimereka.

Konsep Intrapreneur Venture Sindora Berhad melibatkanpemilikan saham maksimum sehingga 75 peratus sementarabaki 25 peratus lagi akan terus kekal dipegang oleh pengurus-usahawan yang dikenali sebagai “Intrapreneur”. Merekadipertanggungjawabkan untuk terus menerajui danmengembangkan bisnes masing-masing. Model ini turutmementingkan pembentukan struktur dan sistem sertapelaksanaan budaya korporat yang membolehkan paraIntrapreneur mengendalikan bisnes secara autonomi.Penetapan dan pemberian ganjaran kepada Intrapreneuradalah berdasarkan kepada kejayaan mereka mencapaisasaran prestasi yang telah ditetapkan dan dipersetujuibersama.

Process of filling and weighing tea prior tolabelling.

Proses mengisi dan menimbang teh sebelumdilabel.

The Intrapreneur Venture concept therefore involves theacquisition of equity interests in small and medium-sizedcompanies as part of the growth strategy that SindoraBerhad employs to create value and at the same time,diversify risks. Priority will be given to companies that offerthe highest prospects for growth and expansion in theimmediate future.

The acquisition process will be done judiciously and will belimited to companies that fulfilled all the stringent selectioncriteria formulated. The fundamental concept and approachesof this new business are fully market driven and will strictlyadhere to the listing requirements by KLSE. The initial phaseof building the Intrapreneur Venture sector as a corebusiness activity involves acquisitions of selected, successfulenterprises within the Johor Corporation (JCorp) Group. Theconcept is designed to ultimately be extended to other highpotential companies in the market that fully meet Sindora’scriteria.

CRITERIA FOR ACQUISITION

The Company had identified several JCorp Group’s profitableand growing businesses for initial phase of acquisitions. Thecompanies are Willis (Malaysia) Sdn Bhd (Willis), JMF AssetManagement Sdn Bhd (JMF), Pro-Office Bulk Mailing SdnBhd (POBM) and Tepak Marketing Sdn Bhd (Tepak).

The Company had proceeded to sign inter-conditional Sale &Purchase Agreements with relevant shareholders of Willis,JMF, POBM and Tepak on 27 December 2002. The acquisitionsof these four companies are expected to be completed sometime in mid-2003, pending approval from relevant authorities.

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Pelaksanaan Intrapreneur Venture ini akan melibatkanpemilikan ekuiti dalam syarikat-syarikat kecil dan sederhanasebagai sebahagian daripada strategi pertumbuhan yangdiguna pakai oleh Sindora Berhad untuk menghasilkan nilai,dan pada masa yang sama, mengurangkan risiko bisnes.Keutamaan akan diberikan kepada syarikat-syarikat yangmempunyai prospek yang baik dari segi pertumbuhan danmampu berkembang di dalam tempoh yang singkat.

Proses pengambilalihan syarikat-syarikat ini akan dilakukandengan berhati-hati dan terhad kepada syarikat yangmemenuhi kesemua kriteria pemilihan yang telah dirangka.Konsep asas serta pendekatan model bisnes baruIntrapreneur Venture ini adalah dipacu sepenuhnya olehpasaran serta menepati syarat-syarat penyenaraian BSKL.Langkah awal dalam membina sektor Intrapreneur Venturesebagai aktiviti teras melibatkan pengambilalihan syarikat-syarikat terpilih yang berdaya maju di dalam Kumpulan JohorCorporation (JCorp). Konsep ini telah dirangka agar iakemudiannya dapat dipanjangkan kepada syarikat-syarikatlain yang berprestasi dan berpotensi besar di pasaran sertamemenuhi sepenuhnya kriteria yang telah ditetapkan.

KRITERIA PENGAMBILALIHAN

Di peringkat awal pelaksanaan Intrapreneur Venture, Syarikattelahpun mengenal pasti beberapa syarikat anak JCorp yangmenguntungkan dan memenuhi kriteria yang ditetapkan.Syarikat-syarikat tersebut adalah Willis (Malaysia) Sdn Bhd(Willis), JMF Asset Management Sdn Bhd (JMF), Pro-OfficeBulk Mailing Sdn Bhd (POBM) dan Tepak Marketing Sdn Bhd(Tepak).

Syarikat telahpun menandatangani Perjanjian JualBelibersyarat dengan pemegang-pemegang saham keempat-empat syarikat di atas pada 27 Disember 2002. Prosespengambilalihan kesemua syarikat tersebut dijangka dapatdiselesaikan pada pertengahan tahun 2003 tertakluk kepadakelulusan daripada pihak berkuasa yang berkaitan.

Labelling of tea packets beforedelivery.

Proses melabel bungkusan tehsebelum penghantaran.

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The four companies were rigorously put through stringentselection criteria that emphasised strict financial parameters,solid business performance and strong managementcapabilities.

The financial parameters stressed on strong past ROEperformance, consistent PAT and annual dividendcontributions, manageable gearing position, healthy cashflowand income stream and positive Economic Value Added(EVA) over three consecutive years.

From business perspective, the companies will need to showpotential for further growth and operating in a growthindustry, command significant presence as one of a keyplayer in the industry and operating in a specialised andsimple business.

The management of the companies must possess therelevant technical knowledge, operate with a team ofexperts in related field, able and willing to spearheadleadership of the respective companies for long termbusiness presence and has an established business andmanagement systems and structure.

Keempat-empat syarikat ini telah memenuhi kriteriapemilihan yang ditetapkan yang menekankan kepada tigaaspek utama iaitu asas kewangan yang kukuh, prestasibisnes yang memberangsangkan dan keupayaan pengurusanyang mantap.

Dari aspek kewangan, penekanan adalah ditumpukankepada prestasi pulangan ekuiti (ROE) yang teguh,keuntungan selepas cukai serta sumbangan dividen tahunanyang konsisten, kedudukan pinjaman yang terkawal, alirantunai dan sumber pendapatan yang kukuh serta nilai“Economic Value Added” (EVA) yang positif.

Dari sudut bisnes pula, syarikat-syarikat tersebut perlumenunjukkan keupayaan untuk terus berkembang danberoperasi dalam industri yang berdayamaju, merupakansalah sebuah peneraju industri yang utama serta terlibatdalam bisnes yang khusus dan mudah.

Pihak pengurusan syarikat pula perlu memiliki pengetahuanbisnes yang diperlukan dan mempunyai kumpulanpengurusan yang mahir dalam bidang yang diceburi disamping berupaya serta sanggup untuk menerajui dan terusmengembangkan syarikat masing-masing dalam tempohjangka panjang. Syarikat juga perlu mempunyai sistem danstruktur perniagaan serta pengurusan yang jelas, telus dankukuh.


Range of teas blended and packed by Tepak Marketing Sdn Bhd.

Pelbagai jenis teh yang diadun dandibungkus oleh Tepak Marketing Sdn Bhd.

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JUSTIFICATION FOR THE INTRAPRENEUR VENTURE

The implementation of the Intrapreneur Venture businesswould lead to significant improvement in Sindora Berhad’sperformance and boost its ROE to generate a higherinvestment value and returns to its shareholders. TheCompany will be able to enhance profitability and spread itsbusiness risks due to the diverse nature of activities of theacquired companies. The implementation will establishSindora Berhad’s position in the market and lessen itsdependency on the plantation and mill operations.

The acquisitions of companies under the IntrapreneurVenture sector will be prudently implemented over time,allowing the intrapreneurs the opportunity to expand theirrespective businesses.

Sindora Berhad’s acquisition of these companies will alsopresent opportunities to the intrapreneurs to partially realisetheir initial investment and provide them direct and indirectaccess to capital market. Inclusion under the IntrapreneurVenture umbrella will enable the companies to becomebetter disciplined in complying with relevant authorities’requirement for the highest standards of corporatebehaviour.

THE INTENDED COMPANIES FOR INITIAL ACQUISITIONS

The first batch of companies intended for the initialacquisitions are diverse in nature with their principal activitiesas follows:

Willis (Malaysia) Sdn Bhd (Willis)Willis operates as an insurance broker for direct insuranceand reinsurance businesses. Willis is among the respectedleaders in some areas of risks involving large construction

JUSTIFIKASI PELAKSANAAN INTRAPRENEUR VENTURE

Pelaksanaan Intrapreneur Venture akan menyumbang secaralangsung kepada prestasi Sindora Berhad, terutamanyapeningkatan ROE untuk memastikan nilai serta pulanganpelaburan yang lebih tinggi kepada para pemegang saham.Selain mencatatkan keuntungan, penglibatan di dalamIntrapreneur Venture ini akan dapat mengurangkan risikobisnes ekoran kepelbagaian aktiviti yang dijalankan olehsyarikat-syarikat yang akan diambilalih, dan langkah iniseterusnya akan mengurangkan pergantungan Syarikatterhadap operasi perladangan dan pengilangan minyaksawit.

Pelaksanaan Intrapreneur Venture akan dilakukan denganberhati-hati secara berperingkat-peringkat bagi memberipeluang kepada Intrapreneur untuk mengembangkan bisnesmasing-masing.

Pengambilalihan yang dilakukan oleh Sindora Berhad iniakan memberi peluang kepada Intrapreneur untukmendapatkan semula sebahagian dari pelaburan awal sertakesempatan secara langsung mahupun tidak langsungkepada pasaran modal. Pelaksanaan Intrapreneur Venture inijuga akan membolehkan syarikat-syarikat ini menjadi lebihberdisiplin dalam mematuhi syarat-syarat pihak berkuasayang berkaitan untuk mencapai standard perilaku korporatyang tinggi.

SYARIKAT-SYARIKAT YANG DICADANGKAN UNTUKDIAMBILALIH

Syarikat yang telah dikenalpasti untuk diambilalih padaperingkat awal ini terdiri daripada syarikat yang mempunyaipelbagai latarbelakang bisnes dan aktiviti sebagaimananaberikut:

Willis (Malaysia) Sdn Bhd (Willis)Willis bertindak sebagai broker insurans untuk insuranssecara langsung serta penginsuranan semula. Syarikat inimerupakan salah sebuah syarikat peneraju yang dihormati

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projects, aviation, marine, oi l and gas, power andtelecommunication, privatised water utility, hospitality andrisk management. Willis is the leader in premium handlingand among the top brokers in the country, in terms ofbrokerage income.

JMF Asset Management Sdn Bhd (JMF)JMF, a licensed asset management company, is involved inproviding fund management services, managing discretionaryand non-discretionary investment funds, corporate financeadvisory, venture capital, shares private placement, shareregistration and custodian services. JMF is currently managinga total fund size of more than RM125 million consisting ofmore than 80 institutions and high net worth individuals.

Pro-Office Bulk Mailing Sdn Bhd (POBM)POBM has established itself as one of the leading players inbulk mailing and printing services due to its ability to servicecustomers like Maxis, Celcom, Arab Malaysian, HSBC,Southern Bank and TM-Touch. POBM has its productioncentre in Kuala Lumpur within easy reach among its currentcorporate clients.

Tepak Marketing Sdn Bhd (Tepak)Tepak is an established tea blending and packaging companybased in Pasir Gudang, Johor. It provides services in blendingand packaging tea in packets, pot bags and sachets eitherwith black teas, green teas, herbal teas, instant teas orflavoured teas for both local and export markets formultinational company of world renowned brand of Lipton.

dan menawarkan perkhidmatan dalam projek-projekpembinaan, penerbangan, marin, minyak dan gas, tenagadan telekomunikasi, projek penswastaan bekalan air,hospitaliti dan pengurusan risiko. Willis juga adalah penerajudalam pengendalian premium dan merupakan salah sebuahbroker terulung di Malaysia dari segi pendapatanpembrokeran.

JMF Asset Management Sdn Bhd (JMF)JMF adalah sebuah syarikat pengurusan aset berlesen yangterlibat dalam memberikan khidmat pengurusan danapelaburan, nasihat kewangan korporat, modal teroka,pelaburan portfolio saham persendirian dan khidmatpendaftaran saham. Buat masa ini JMF menguruskan danayang bernilai lebih RM125 juta yang dimiliki oleh lebihdaripada 80 buah institusi serta individu-individu pelabur.

Pro-Office Bulk Mailing Sdn Bhd (POBM)Berdasarkan keupayaannya untuk memberikan perkhidmatanyang cemerlang kepada para pelanggan seperti Maxis,Celcom, Arab Malaysian, HSBC, Southern Bank dan TM-Touch, POBM telah berjaya menempatkan dirinya sebagaisalah sebuah syarikat utama yang menawarkan khidmat melserta percetakan secara pukal. Operasinya yang berpusat diKuala Lumpur memudahkan POBM berurusan dengan parapelanggan korporatnya.

Tepak Marketing Sdn Bhd (Tepak)Beroperasi di Pasir Gudang, Johor, Tepak memberikankhidmat mengadun serta membungkus teh di dalam paket,beg serta uncang bagi teh hitam, teh hijau, teh herba, tehsegera mahupun teh berperisa untuk kedua-dua pasarantempatan dan juga eksport kepada syarikat multinasionalyang memasarkan jenama Lipton yang terkenal di seluruhdunia.


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The intended companies had consistently demonstrated excellent track records and are well positioned for long-term businesspresence with prospects for further growth and expansion. Performances for 2001 and 2002 are as illustrated below:Keempat-empat syarikat ini telah mempamerkan secara konsisten rekod pencapaian yang cemerlang dan mempunyai posisibisnes yang mampu menjamin kesinambungannya bagi memastikan pertumbuhan dan perkembangan secara berterusan.Ringkasan prestasi syarikat-syarikat ini adalah sebagaimana di bawah:

BUTIRAN AUDITED / BERAUDIT 2001 AUDITED / BERAUDIT 2002

WILLIS JMF POBM TEPAK WILLIS JMF POBM TEPAK

TURNOVER (RM MIL)PEROLEHAN (RM JUTA) 8.83 3.08 18.21 8.56 13.34 2.74 15.39 9.43

PAT (RM MIL)KEUNTUNGAN SELEPAS

CUKAI (RM JUTA) 2.10 0.85 1.28 0.66 5.47 0.47 0.97 0.75

ROE (%)PULANGAN KE ATAS

EKUITI (%) 52.11 19.50 45.62 27.28 71.04 9.97 26.54 27.92

EPS (SEN)PENDAPATAN SESAHAM

(SEN) 421 43 396 83 1,095 23 300 93

The Intrapreneur Venture sector therefore promises goodpotential and prospects as it allows the Group to quicklygrow and enhance value in achieving its corporate role andmeeting shareholders’ expectations. It is precisely with aneye on meeting the corporate renewal needs that the Grouphad established its Corporate Office at Menara Ansar, JohorBahru, a move intended to facilitate its Intrapreneur Venture’sintention to seize new business opportunities and to growSindora Berhad under a totally new corporate image.

HUMAN RESOURCE DEVELOPMENT

In recognising the importance of employees as an asset tothe Company, a comprehensive human resource developmentplan had been formulated in line with the Company’sdevelopment and expansion strategy. Several steps weretaken to equip the Company’s employees towards fulfillingthe Group’s long-term growth, including developmentprogrammes for the improvement in knowledge and know-how especially related to Intrapreneur Venture. The integratedapproach consists of technical training, workshops, courses,seminars and business trips, and further programmes will bedeveloped to suit the needs and requirement of the Group.The Group also encourages its executives to pursueprofessionally accredited qualifications like MBA, CPA andCIA from recognised institutions.

Adalah jelas bahawa Intrapreneur Venture mampu memberikanpotensi dan prospek yang baik kepada Kumpulan untuk terusberkembang dan mempertingkatkan nilai untuk merealisasikanperanan korporatnya bagi memenuhi hasrat para pemegangsahamnya. Dalam menjayakan matlamat dan pendekatankorporat ini, Kumpulan telah mengambil langkah menubuhkansebuah Pejabat Korporat di Menara Ansar, Johor Bahru bagimeraih peluang-peluang bisnes serta membina imej korporatSindora Berhad yang baru.

PEMBANGUNAN SUMBER MANUSIA

Menyedari kepentingan para pekerja sebagai aset kepadaSyarikat, satu pelan pembangunan sumber manusia yangkomprehensif telah dirangka selaras dengan strategipembangunan dan perkembangan jangka panjang Syarikat.Antara langkah yang telah diambil termasuk programpembangunan bagi mempertingkatkan pengetahuan sertakemahiran terutamanya yang berkaitan dengan IntrapreneurVenture. Kaedah bersepadu ini merangkumi latihan teknikal,bengkel, kursus, seminar serta lawatan dan juga program-program lain yang bersesuaian dengan kehendak sertakeperluan Kumpulan dari masa ke semasa. Kumpulan turutmenggalakkan para eksekutifnya untuk mendapatkankelayakan profesional seperti MBA, CPA dan CIA dariinstitusi-institusi yang diiktiraf.

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The Group’s continued survival and ensuing success of future

performance and achievements will be guided more by the

capabilities and initiatives of its management. In ensuring

growth and expansion for maximum value, the

management’s emoluments and incentives will be based on

specific Key Result Area of each business units set at the

beginning of the year. This approach is more market driven

to improve motivation and enhance commitment of the

management to positively contribute towards achievement of

set targets for the Group.

DIVIDENDS

For the financial year ended 31 December 2002, the

Company had paid an interim dividend of 5 percent tax

exempt for a total of RM4,800,000 (5 sen per share) on 25

February 2003. The Board is pleased to recommend for the

shareholders' approval, a final dividend of 5 percent tax

exempt for a total of RM4,800,000 (5 sen per share).

Kesinambungan Kumpulan dalam memastikan kejayaan

prestasi dan pencapaian masa hadapan banyak bergantung

kepada keupayaan dan inisiatif pihak pengurusannya. Dalam

usaha untuk memastikan pertumbuhan serta perkembangan

Kumpulan secara berterusan, imbuhan dan ganjaran pihak

pengurusan akan dibuat berdasarkan “Key Result Area”

(KRA) yang khusus bagi setiap unit bisnes yang ditetapkan

pada setiap awal tahun. Pendekatan yang lebih didorong

oleh pasaran ini dilihat sebagai satu mekanisme yang

mampu untuk meningkatkan motivasi serta komitmen pihak

pengurusan untuk menyumbang secara optimum ke arah

pencapaian objektif Kumpulan.

DIVIDEN

Bagi tahun kewangan berakhir 31 Disember 2002, Syarikat

telah membayar dividen interim sebanyak 5 peratus yang

dikecualikan cukai berjumlah RM4,800,000 (5 sen sesaham)

pada 25 Februari 2003. Lembaga Pengarah dengan

sukacitanya mencadangkan untuk kelulusan para pemegang

saham, dividen akhir sebanyak 5 peratus yang dikecualikan

cukai berjumlah RM4,800,000 (5 sen sesaham) yang akan

dibayar pada 15 Julai 2003.

Sindora is intensifying efforts toreinforce commitment towardsquality.

Sindora sentiasa berusahameningkatkan komitmen ke arahkualiti.


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CABARAN DAN PROSPEK MASA DEPAN

Pelaksanaan penyusunan semula korporat yang komprehensif

melalui penerokaan dalam bisnes teras baru yang dikenali

sebagai Intrapreneur Venture dijangka mampu untuk

mengukuhkan pertumbuhan dan menyumbang kepada

keuntungan Kumpulan mulai tahun 2003.

Sektor perladangan dan perkilangan kelapa sawit akan terus

menjadi salah satu penyumbang utama kepada aliran tunai

bagi menyokong pemulihan dan pertumbuhan Kumpulan di

masa hadapan. Usaha-usaha penggabungan dan penyusunan

semula aktiviti Kumpulan akan terus dilaksanakan dari masa

ke semasa bagi memperkukuh serta mempertingkatkan

prestasi untuk mencapai matlamat menjadikan Syarikat

sebagai salah sebuah syarikat yang terulung di BSKL.

Langkah pengambilalihan syarikat-syarikat yang berdaya

maju dengan pulangan yang konsisten akan membolehkan

Kumpulan mendapat manfaat dari pelaburannya dalam

tempoh yang singkat.

Penyusunan semula korporat yang dilaksanakan akan

memperkemaskan lagi operasi dan aktiviti Kumpulan kepada

tiga bisnes teras yang strategik iaitu Bisnes Kelapa Sawit,

Intrapreneur Venture dan Perkayuan. Struktur Kumpulan

akan lebih kemas dan efisyen berdasarkan aktiviti bisnes

yang lebih khusus dan seterusnya mampu meningkatkan

nilai dan menjana pulangan yang maksimum kepada

pemegang saham. Pelaksanaan kesemua langkah yang telah

dan akan diambil ini akan membolehkan Kumpulan untuk

mencapai objektif korporat dan bisnesnya pada tahun

kewangan yang akan datang.

Selaras dengan matlamat ini, Kumpulan memutuskan untuk

menukar logo korporatnya agar lebih mencerminkan

perubahan hala tuju bisnes selari dengan langkah

pembaharuan dan penyusunan semula korporatnya.

Perubahan struktur korporat yang berasaskan keusahawanan

yang dinamik dan kreatif serta komitmen yang tinggi

dijangka mampu mewujudkan nilai berterusan untuk

pertumbuhan dan kejayaan bisnes jangka panjang

Kumpulan.

FUTURE PROSPECTS AND CHALLENGES

The bold and comprehensive corporate restructuring

measures implemented with ventures into an additional core

business officially termed Intrapreneur Venture will steer the

Group on a solid growth path and contribute significantly to

its earnings from 2003 onwards.

Plantation and mill sector will continue to be a strong

contributor to cashflows in supporting the Group’s corporate

turnaround and future growth. Consolidation and

restructuring initiatives will continue to be pursued to

strengthen and improve the long-term performance and

growth prospects. The ultimate objective is to transform the

Company into one of the top blue chip companies listed on

the KLSE. The strategy to acquire growth companies with

consistent earnings and ROE will produce the expected

results within a short period upon acquisition.

The corporate restructuring and streamlining exercises will

result in clearly defined Group activities, focusing on three

strategic business thrusts, namely Palm Oils, Intrapreneur

Venture and Timber activities. The Group’s structure will be

more streamlined and efficient based on the specific business

activities that will add value and maximise returns to

shareholders. With all the measures taken, the Group is

optimistic to achieve better results for the next financial year.

With this in mind, the Group had therefore decided to

change its corporate logo to project the shift in business

direction that is consistent with the corporate reform and

renewal exercise. It is therefore a shift for the better,

structured on newly found corporate entrepreneurial

dynamism and creativity with uncompromising commitment

to sustainable value creation for long-term corporate growth

and business success.

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ACKNOWLEDGEMENT

On behalf of the Board, we would like to place on record

our sincere appreciation to YB Dato’ Johari bin Mohamed as

Chairman from 22 February 2001 to 31 July 2002 and Tn Hj

Abd Razak bin Selamat as the Managing Director from 1986

to 1 May 2002 for their commendable contributions to the

Group. Our special appreciation also goes to Pn Hjh Hasnah

bte Ali, Tn Hj Abd Jalal bin Basimi and En Mohammad bin

Alwi for their distinguished contributions. It is also our great

pleasure to welcome Ms Kua Hwee Sim, Tn Hj Esa bin

Mamek and En Halmi bin Jasmin as new members of the

Board.

As always, we remain grateful to all our valued customers,

friends, shareholders, business associates and partners,

Government authorities and departments at both state and

federal levels, who have been extremely supportive

throughout this challenging period. Last but not least, our

appreciation to all our staff for their loyalty, hard work,

dedication and remarkable service and contributions to the

Group.

PENGHARGAAN

Bagi pihak Lembaga Pengarah, kami ingin merakamkan

setinggi-tinggi penghargaan kepada YB Dato’ Johari bin

Mohamed selaku Pengerusi bermula dari 22 Februari 2001

sehingga 31 Julai 2002 dan Tn Hj Abd Razak bin Selamat

sebagai Pengarah Urusan dari tahun 1986 sehingga 1 Mei

2002 di atas jasa bakti dan sumbangan mereka yang tidak

ternilai kepada Kumpulan. Penghargaan khas turut diberikan

kepada Pn Hjh Hasnah bte Ali, Tn Hj Abd Jalal bin Basimi

serta En Mohammad bin Alwi di atas jasa dan sumbangan

mereka selama ini. Kami juga ingin mengalu-alukan

perlantikan Cik Kua Hwee Sim, Tn Hj Esa bin Mamek dan

En Halmi bin Jasmin sebagai Ahli Lembaga Pengarah yang

baru.

Sebagaimana lazimnya, kami ingin merakamkan

penghargaan dan ucapan terima kasih kepada semua

pelanggan yang amat dihargai, para pemegang saham,

rakan bisnes dan rakan kongsi, badan-badan serta jabatan-

jabatan Kerajaan di peringkat negeri dan persekutuan, yang

telah memberi sokongan yang padu dan tidak berbelah bagi

di sepanjang tempoh yang mencabar ini. Akhir sekali,

penghargaan kami kepada semua anggota pekerja di atas

kesetiaan, ketekunan, dedikasi serta perkhidmatan dan

sumbangan yang cemerlang yang telah diberikan kepada

Kumpulan.

TAN SRI DATO’ MUHAMMAD ALI HASHIM ROZAN BIN MOHD SA’ATChairman / Pengerusi Managing Director / Pengarah Urusan


Corporate Governance StatementPenyata Tadbir Urus Korporat

The Board of Directors of Sindora Berhad (“theBoard”) recognises that corporate governance is acontinuous process and is supportive of the variouschanges in the relevant regulatory landscape.

Lembaga Pengarah Sindora Berhad (“LembagaPengarah”) mengiktiraf bahawa Tadbir Urus Korporatmerupakan suatu proses yang berterusan danmenyokong sepenuhnya perubahan dalam pelbagaiperaturan yang berkaitan.

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It is committed to direct and manage Sindora Berhad (“theCompany” or “Sindora”) towards enhancing businessprosperity and corporate accountability, and keen to ensurethe adoption of best practices throughout the SindoraBerhad Group (“the Group”). The Board will reviewSindora’s corporate governance status, as it requiresperiodic reassessment and refinement of managementpractices and system.

During the year under review, a consolidated riskmanagement framework has been implemented across theGroup starting 14 June 2002.

THE BOARD AND ITS COMMITTEES

The Board is responsible for the strategic direction of theGroup and the adherence to proper business conduct. Aneffective and experienced Board consisting of memberswith a wide range of economics, public service,accounting, finance and investment backgrounds leads andcontrols the Group. As such, they are able to bring anindependent judgment to bear on issues of strategy,performance, resources and standards of conduct. Thus,the Company could rest firmly in the charge of anaccountable and competent Board of Directors.

The Board has set up committees namely Audit,Nomination and Remuneration Committees, all of whichhave terms of reference to govern their functions andresponsibilities. The Committees have the authority toexamine particular issues and report back to the Boardwith their recommendations. The ultimate responsibility forthe final decision on all matters, however, lies with theentire Board. Meanwhile, various committees at theexecutive management level further assist the ManagingDirector in the day-to-day business and operation of theGroup.

Lembaga Pengarah komited dalam memberi tujuarah danmengurus Sindora Berhad (“Syarikat” atau “Sindora”) kearah meningkatkan kemakmuran bisnes dankebertanggungjawaban korporat, serta bersungguh-sungguhdalam memastikan penerapan amalan terbaik di peringkatantarabangsa ke seluruh Kumpulan Sindora Berhad(“Kumpulan”). Lembaga Pengarah akan meneliti statusTadbir Urus Korporat Syarikat secara berkala dan mengolahserta meneliti secara berterusan sistem dan pendekatanpengurusan.

Sepanjang tahun kewangan 2002, Syarikat telahmelaksanakan satu rangka kerja pengurusan risikobersepadu di peringkat Kumpulan bermula 14 Jun 2002.

LEMBAGA PENGARAH

Lembaga Pengarah bertanggungjawab ke atas hala tujustrategik Kumpulan dan kepatuhan terhadap tatacarabisnes yang sewajarnya. Kumpulan diterajui dan dikawaloleh Lembaga Pengarah yang efektif di mana Ahli-ahlinyaterdiri daripada ahli yang berpengalaman dengan pelbagailatar belakang di bidang ekonomi, perkhidmatan awam,perakaunan, kewangan dan pelaburan. Dengan itu, merekaberkemampuan membawa pandangan serta pertimbanganyang bebas ke atas isu-isu strategi, pencapaian, sumber-sumber dan standard perilaku. Ini membolehkan Syarikatberada pada kedudukan yang selesa di bawah kendalianLembaga Pengarah yang bertanggungjawab dan cekap.

Lembaga Pengarah telah menubuhkan beberapajawatankuasa iaitu Jawatankuasa Audit, JawatankuasaPencalonan dan Jawatankuasa Imbuhan. Setiapjawatankuasa tersebut mempunyai bidang kuasa yangmenjadi garis panduan terhadap fungsi dan tanggungjawabmasing-masing. Jawatankuasa-jawatankuasa ini mempunyaikuasa untuk memeriksa sesuatu isu dan melapor sertamemberikan cadangannya kepada Lembaga Pengarah.Walau bagaimanapun, tanggungjawab ke atas segalakeputusan akhir yang dibuat adalah terletak kepadaLembaga Pengarah. Sementara itu, terdapat beberapajawatankuasa di peringkat pengurusan eksekutif yangmembantu Pengarah Urusan dalam urusan bisnes danoperasi harian Kumpulan.


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COMPOSITION OF THE BOARD

As at 31 December 2002, Sindora has five Board members.Four of them are Non-Executive Directors, of whom two areIndependent Directors. Ms Kua Hwee Sim was appointedto the Board as an Independent Director on 1 August 2002.With the appointment of Hj Esa bin Mamek on 1 January2003 and Halmi bin Jasmin on 20 February 2003, as atthe date of this report the Board comprises the following:

Executive Director 1/6 (16.67%)(also the Managing Director/Chief Executive Officer)

Independent Non-ExecutiveDirectors 2/6 (33.33%)

Non-IndependentNon-Executive Directors 3/6 (50.00%)

The Board meets on a scheduled basis once every quarterwith special Board meetings convened should the needarise. During the twelve months period ended 31 December 2002, four Board meetings and a SpecialBoard meeting were held. The table below provides detailsof attendance:

KOMPOSISI LEMBAGA PENGARAH

Sehingga 31 Disember 2002, Sindora mempunyai lima orangahli Lembaga Pengarah. Empat orang merupakan PengarahBukan Eksekutif, yang mana dua daripadanya merupakanPengarah Bebas. Cik Kua Hwee Sim telah dilantik sebagaiPengarah Bebas pada 1 Ogos 2002. Dengan perlantikan Hj Esa bin Mamek pada 1 Januari 2003 dan Halmi binJasmin pada 20 Februari 2003, sehingga tarikh laporan inidikeluarkan, Lembaga Pengarah terdiri daripada:

Pengarah Eksekutif 1/6 (16.67%)(Pengarah Urusan/Ketua Pegawai Eksekutif)

Pengarah Bebas Bukan 2/6 (33.33%)Eksekutif

Pengarah Bukan Eksekutif 3/6 (50.00%)

Lembaga Pengarah bermesyuarat mengikut jadual sekurang-kurangnya sekali setiap suku tahun, dengan mesyuarat khasLembaga Pengarah diadakan jika perlu. Sepanjang tempohdua belas bulan berakhir 31 Disember 2002, empat mesyuaratLembaga Pengarah dan satu mesyuarat khas LembagaPengarah telah diadakan. Rekod kehadiran ke mesyuaratLembaga Pengarah adalah seperti di jadual di bawah:

20 February 2002 22 May 2002 7 August 2002 14 November 2002 27 December 2002 Appointed/20 Februari 2002 22 Mei 2002 7 Ogos 2002 14 November 2002 27 Disember 2002 Resigned

Directors Name / Nama Pengarah (157th / ke-157) (158th / ke-158) (159th / ke-159) (160th / ke-160) (Special / Khas) Dilantik/Bersara

Dato’ Johari bin Mohamed ✔ ✔ — — — 1 August / Ogos 2002 (R/B)

Hj Abd Razak bin Selamat ✔ — — — — 1 May / Mei 2002 (R /B)

Tan Sri Datuk Arshad Ayub* ✔ ✔ ✔ ✔ — 7 July / Julai 1995 (A/L)

Hasnah bte Ali ✔ ✔ ✔ — — 16 August / Ogos 2002 (R/B)

Mohammad bin Alwi ✔ ✔ ✔ ✔ ✔ 20 February / Februari2003 (R /B)

Hj Abd Jalal bin Basimi ✔ — — — — 1 May / Mei 2002 (R /B)

Tan Sri Dato’ Muhammad Ali Hashim* — — ✔ ✔ ✔ 1 August / Ogos 2002 (A/L)

Rozan bin Mohd Sa’at* — — ✔ ✔ ✔ 23 May / Mei 2002 (A/L)

Kua Hwee Sim* — — ✔ ✔ ✔ 1 August / Ogos 2002 (A/L)

Hj Esa bin Mamek* — — — — — 1 January / Januari 2003 (A/L)

Halmi bin Jasmin* — — — — — 20 February / Februari2003 (A/L)

* Current Directors as at the date of this report / Senarai semasa Ahli Lembaga Pengarah(A/L) = Appointed / Dilantik (R /B) = Retired / Bersara

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PROVIDING INFORMATION TO THE BOARD

The Board is kept updated on the Group’s activities andoperation on a regular basis. The Board will approve theGroup’s Strategic Plan including cash flow forecast andoutlined projections for two subsequent years. Thesebudgets and plans are prepared by the respective operatingand support units and reviewed by the special committeeof the Holding Corporation before seeking Board’sapproval.

The agenda and a full set of papers are distributed withinsufficient time prior to Board meetings to enable theDirectors to review and consider, and be properly preparedfor discussion. The Company Secretary properly maintainsminutes of the Board meetings, which include records ofthe Board’s decisions and resolutions.

Further to their duties, all Directors have access to theadvice and services of the Company Secretary. TheDirectors may engage outside experts wheneverindependent professional advice is required at the Group’sexpense.

BOARD BALANCE

In line with the long standing practice within the JohorCorporation Group of Companies, the position of theChairman and the Managing Director are separately heldby two persons to ensure a balance of power andauthority. The Chairman is primarily responsible for theorderly conduct of the Board whilst the Managing Directoris responsible for the day-to-day running of the businessand implementation of Board policies and operationaldecision-making.

The Non-Executive Directors have the necessary calibre toensure that Management’s proposals are fully deliberatedand examined. The presence of the Independent Directorsis essential as it provides unbiased and independent views,advice and judgment to safeguard the interests of otherstakeholders, particularly the minority shareholders.

PENYALURAN MAKLUMAT KEPADA LEMBAGAPENGARAH

Lembaga Pengarah sentiasa dimaklumkan berkaitan aktivitidan operasi Kumpulan. Lembaga Pengarah akan meluluskanPelan Perancangan Strategik Kumpulan termasuk jangkaanaliran tunai dan untung rugi serta menggariskan unjuranuntuk dua tahun berikutnya. Bajet dan perancangantersebut disediakan oleh unit operasi dan unit khidmatsokongan yang berkenaan dan dibentangkan kepadajawatankuasa khas di peringkat Perbadanan Induk sebelumdibawa kepada Lembaga Pengarah untuk kelulusan.

Agenda dan kertas kerja lengkap diedarkan dalamjangkamasa yang mencukupi sebelum sesuatu mesyuaratLembaga Pengarah diadakan bagi membolehkan paraPengarah mengkaji kertas kerja tersebut dan seterusnyamemudahkan Lembaga Pengarah membuat keputusanberdasarkan maklumat yang diberikan. Minit mesyuaratLembaga Pengarah disimpan dan diselenggara dengan baikoleh Setiausaha Syarikat.

Ekoran daripada tugasan sebagai Pengarah, kesemuaPengarah mempunyai akses penuh kepada maklumat dankhidmat Setiausaha Syarikat. Ahli Lembaga Pengarah bolehmendapatkan khidmat pakar jika nasihat profesional yangbebas diperlukan di mana kosnya ditanggung olehKumpulan.

KESEIMBANGAN LEMBAGA PENGARAH

Sejajar dengan amalan Syarikat dalam Kumpulan JohorCorporation, jawatan Pengerusi dan Pengarah Urusandipegang oleh individu yang berlainan bagi mewujudkanpemisahan fungsi dan tugas serta keseimbangan kuasayang jelas di antara keduanya. Pengerusi umumnyabertanggungjawab ke atas hal ehwal Lembaga Pengarahmanakala Pengarah Urusan bertanggungjawab ke atasperjalanan bisnes dan operasi harian, serta pelaksanaanpolisi-polisi yang diputuskan oleh Lembaga Pengarah.

Pengarah Bukan Eksekutif memiliki kaliber yang diperlukanbagi memastikan segala cadangan oleh pihak Pengurusandipertimbangkan dan dikaji dengan teliti. KehadiranPengarah Bebas adalah penting kerana mereka memberikanpandangan, nasihat dan pertimbangan yang bebas dantidak memihak serta menjaga kepentingan pemegangsaham khususnya pemegang saham minoriti.

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The Board had named Tan Sri Datuk Arshad Ayub as theSenior Independent Non-Executive Director to whomconcerns may be conveyed.

A brief description of the background of each Director ispresented on pages 10 to 15.

APPOINTMENTS AND RE-ELECTION OF DIRECTORS

The Malaysian Code on Corporate Governance (“theCode”) endorses a formal procedure for appointments tothe Board, with a Nomination Committee makingrecommendations to the Board. The Nomination Committeewas established in December 2001. The new compositioneffective 24 February 2003 are as follows:

1. Tan Sri Datuk Arshad Ayub (Chairman)(Independent Non-Executive Director)

2. Kua Hwee Sim(Independent Non-Executive Director)

3. Hj Esa bin Mamek(Non-Independent Non-Executive Director)

All members of the Committee participate in assessing,identifying, nominating and appointing suitable candidateswho can contribute effectively to the growth of theCompany. Majority of the members is IndependentDirectors. The terms of reference of this Committee,among others are:

* Assess on on-going basis the effectiveness of the Boardand its Committees, and the contribution of eachindividual Director

* Review and examine annually the size of the Board andrequired mix of skills, experience and other qualities

* Orientating and educating new Directors on the natureof the Group’s business

Lembaga Pengarah telah menamakan Tan Sri Datuk ArshadAyub sebagai Pengarah Bebas Kanan bagi mengemukakansebarang kebimbangan atau pertanyaan.

Profil setiap Pengarah adalah seperti di muka surat 10hingga 15.

PERLANTIKAN DAN PEMILIHAN SEMULA PENGARAH

Kod Tadbir Urus Korporat Malaysia menggariskan satuprosedur yang formal bagi perlantikan sebagai AhliLembaga Pengarah, di mana Jawatankuasa Pencalonanmencadangkan calon-calon pengarah kepada LembagaPengarah. Jawatankuasa Pencalonan telah ditubuhkan padaDisember 2001. Berkuatkuasa pada 24 Februari 2003, ahli-ahli Jawatankuasa Pencalonan terdiri daripada:

1. Tan Sri Datuk Arshad Ayub (Pengerusi)(Pengarah Bebas Bukan Eksekutif)

2. Kua Hwee Sim(Pengarah Bebas Bukan Eksekutif)

3. Hj Esa bin Mamek(Pengarah Bukan Bebas Bukan Eksekutif)

Ahli-ahli Jawatankuasa Pencalonan terlibat dalam prosesmenilai Pengarah sedia ada dan mengenalpasti,mencadangkan dan melantik pengarah baru yang mampumenyumbang kepada kemajuan Syarikat. Majoriti daripadaahli Jawatankuasa ini adalah Pengarah Bebas. Antarabidang tugas dan tanggungjawab JawatankuasaPencalonan:

* Menilai keberkesanan Lembaga Pengarah danJawatankuasa-jawatankuasanya serta sumbangan setiapAhli Lembaga Pengarah secara berterusan

* Mengkaji kesesuaian saiz Lembaga Pengarah dangabungan kemahiran dan pengalaman yang diperlukan

* Memberi panduan kepada Pengarah baru berkaitanbisnes Kumpulan

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The Company’s Articles of Association provide at least onethird of the Directors be subjected to re-election byrotation at each Annual General Meeting. The ManagingDirector shall be subjected to provisions of any contractbetween him and the Company and also subjected to thesame provisions as to the resignation and removal asDirectors of the Company.

DIRECTORS’ TRAINING

All Directors are encouraged to attend continuouseducation programmes – conferences, courses and seminars– to keep abreast with developments in the market. As at31 December 2002, all Board members, except Halmi binJasmin, had attended the Mandatory AccreditationProgramme as required by the KLSE.

DIRECTORS’ REMUNERATION AND ITS PROCEDURE

The Company has adopted the steps as recommended bythe Code to determine that the remuneration for aDirector is at a sufficient threshold so as to attract andretain the directors needed to run the Group successfully.

The Remuneration Committee was established in December2001. The new composition effective 24 February 2003 areas follows:

1. Tan Sri Dato’ Muhammad Ali Hashim (Chairman)(Non-Independent Non-Executive Director)

2. Tan Sri Datuk Arshad Ayub(Independent Non-Executive Director)

3. Kua Hwee Sim(Independent Non-Executive Director)

All members are Non-Executive Directors. The terms ofreference of this Committee, among others are:

* Establish a formal and transparent procedure fordeveloping policy on executive remuneration and fixingthe remuneration packages of individual Directors

* Ensure the existence of a succession plan* Recommend the remuneration, review and determine

the bonus scheme and service contracts of theExecutive Director

Tata Urus Penubuhan Syarikat memperuntukkan sekurang-kurangnya satu pertiga daripada Pengarah tertakluk kepadapemilihan semula secara bergilir dalam setiap MesyuaratAgung Tahunan. Tata Urus Penubuhan Syarikat tersebut jugamensyaratkan Pengarah Urusan adalah tertakluk kepadaperuntukan-peruntukan kontrak di antara beliau danSyarikat selain daripada peruntukan berkaitan persaraandan penggantian pengarah, sama seperti Pengarah-Pengarah yang lain.

LATIHAN UNTUK PENGARAH

Ahli Lembaga Pengarah adalah digalakkan untuk menghadiriprogram meningkatkan pengetahuan dan pendedahanbisnes serta pasaran secara berterusan melalui programpersidangan, kursus dan seminar. Sehingga 31 Disember2002, semua Ahli Lembaga Pengarah kecuali Halim binJasmin telah menghadiri Program Akreditasi Wajib sepertiyang disyaratkan oleh Bursa Saham Kuala Lumpur (“BSKL”).

PROSEDUR DAN IMBUHAN KEPADA LEMBAGA PENGARAH

Syarikat telah mengambil langkah seperti yang digariskanoleh Kod Tadbir Urus Korporat Malaysia untukmengenalpasti pakej imbuhan kepada Pengarah bagimemastikan ianya mampu menarik dan mengekalkanpengarah yang diperlukan oleh Kumpulan.

Jawatankuasa Imbuhan telah ditubuhkan pada Disember2001. Berkuatkuasa pada 24 Februari 2003, Ahli-ahliJawatankuasa Imbuhan terdiri daripada:

1. Tan Sri Dato’ Muhammad Ali Hashim (Pengerusi)(Pengarah Bukan Bebas Bukan Eksekutif)

2. Tan Sri Datuk Arshad Ayub(Pengarah Bebas Bukan Eksekutif)

3. Kua Hwee Sim(Pengarah Bebas Bukan Eksekutif)

Kesemua ahli Jawatankuasa Imbuhan merupakan PengarahBukan Eksekutif. Bidang tugas Jawatankuasa ini antara lain:

* Mewujudkan satu prosedur yang formal dan telusuntuk membangunkan polisi imbuhan untuk eksekutifdan menentukan pakej imbuhan kepada Ahli LembagaPengarah

* Memastikan adanya Pelan Penggantian Pengurusan* Mencadangkan imbuhan, mengkaji serta menentukan

skim bonus dan kontrak perkhidmatan Pengarah Eksekutif

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The Remuneration Committee would recommend to theBoard the framework of executive remuneration and itscost, and the remuneration package for the ExecutiveDirector. The determination of the remuneration of theNon-Executive Directors is a matter for the Board/HoldingCorporation. Directors shall not participate in decision-making of their own remuneration.

REMUNERATION PACKAGE

The component parts of remuneration for ExecutiveDirector are structured so as to link rewards to corporateand individual performance. In the case of Non-ExecutiveDirectors, the level of remuneration reflects the experienceand responsibilities undertaken by the Non-ExecutiveDirectors concerned.

Basic salary for Executive Director is recommended by theRemuneration Committee for Board approval. It includesfixed allowance and employer’s contribution to EmployeeProvident Fund. A gratuity of RM54,902 was paid to theformer Managing Director as appreciation for his longservice to the Group.

Rozan bin Mohd Sa’at, an employee of Johor Corporation(“JCorp”) (the Holding Corporation) was appointed asDirector on 23 May 2002 and as the Managing Directoron 1 September 2002. He served in JCorp until the end ofthe financial year, whereby during this transitional period,received his Directors’ Fee from JCorp.

Payments of Directors’ Fees to Mohammad bin Alwi and Hj Abd Jalal bin Basimi, Non-Executive Directorsrepresenting JCorp, were paid direct to JCorp.

Allowances are provided for directors’ attendance to eachBoard and Audit Committee meetings. For Mohammad binAlwi and Hj Abd Jalal bin Basimi, the allowances were paiddirect to JCorp.

Jawatankuasa Imbuhan akan mencadangkan kepadaLembaga Pengarah satu rangkakerja imbuhan untukeksekutif dan pakej imbuhan untuk Pengarah Eksekutif.Manakala imbuhan untuk Pengarah Bukan Eksekutif adalahditentukan oleh Lembaga Pengarah/Perbadanan Induk.

PAKEJ IMBUHAN

Komponen imbuhan bagi Pengarah Eksekutif distrukturagar ganjaran dapat dihubungkaitkan dengan prestasiindividu dan pencapaian korporat. Bagi Pengarah BukanEksekutif, imbuhan yang diberi adalah berdasarkanpengalaman serta tanggungjawab yang dipikul olehPengarah Bukan Eksekutif berkenaan.

Gaji untuk Pengarah Eksekutif dicadangkan olehJawatankuasa Imbuhan untuk kelulusan Lembaga Pengarah.Gaji adalah termasuk elaun tetap dan caruman majikankepada Kumpulan Wang Simpanan Pekerja. Bayaran gratuitiberjumlah RM54,902 telah dibayar kepada bekas PengarahUrusan sebagai tanda penghargaan bagi khidmat yangtelah diberikan kepada Kumpulan.

Rozan bin Mohd Sa’at, anggota pekerja di JohorCorporation (“JCorp”) (Perbadanan Induk) telah dilantiksebagai Pengarah pada 23 Mei 2002 dan telah dilantik kejawatan Pengarah Urusan pada 1 September 2002. Beliauturut diberi tanggungjawab di JCorp sehingga akhir tahunkewangan, di mana selama waktu peralihan tersebut, elaunpengarah beliau dibayar oleh JCorp.

Bayaran elaun pengarah kepada Mohammad bin Alwi danHj Abd Jalal bin Basimi, para Pengarah bukan Eksekutifyang mewakili JCorp, dibayar terus kepada JCorp.

Elaun juga dibayar bagi setiap kehadiran Pengarah kemesyuarat Lembaga Pengarah dan Jawatankuasa Audit.Bayaran elaun kehadiran Mohammad bin Alwi dan Hj AbdJalal bin Basimi dibayar terus kepada JCorp.

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The details of the remuneration of each Director during financial year 2002 are as follows:Butiran lengkap berkaitan imbuhan setiap Pengarah semasa tahun kewangan 2002 adalah seperti berikut:

Directors’ MeetingsDirector Name Salary* Fees Allowances Gratuity Total

Yuran ElaunPengarah Gaji* Pengarah Mesyuarat Gratuiti Total

RM RM RM RM RM

Executive / Eksekutif

Hj Abd Razak bin Selamat 72,576 7,500 — 54,902 135,978(resigned / bersara pada 1 May / Mei 2002)

Rozan bin Mohd Sa’at 67,532 9,750** 3,000** — 80,282(appointed as Director / dilantik sebagai Pengarahpada 23 May / Mei 2002)(appointed as Managing Director / dilantik sebagaiPengarah Urusan pada 1 September 2002)

Non-Executive / Bukan Eksekutif

Dato’ Johari bin Mohamed — 11,677 4,000 — 15,677(resigned / bersara pada 1 August / Ogos 2002)

Tan Sri Dato’ Muhammad Ali Hashim — 12,500** 6,000** — 18,500(appointed / dilantik pada 1 August / Ogos 2002)

Tan Sri Datuk Arshad Ayub — 15,000 6,200 — 21,200(appointed / dilantik pada 7 July / Julai 1995)

Hasnah bte Ali — 10,625 3,900 — 14,525(resigned / bersara pada 16 August / Ogos 2002)

Kua Hwee Sim — 6,250 3,300 — 9,550(appointed / dilantik pada 1 August / Ogos 2002)

Mohammad bin Alwi — 15,000** 6,200** — 21,200(resigned / bersara pada 20 February / Februari 2003)

Hj Abd Jalal bin Basimi — 5,000 1,000** — 6,000(resigned / bersara pada 1 May / Mei 2002)

Hj Esa bin Mamek* — — — — —(appointed / dilantik pada 1 January / Januari 2003)

Halmi bin Jasmin — — — — —(appointed / dilantik pada 20 February / Februari 2003)

* Includes fixed allowance and employer’s contribution to EPF / Termasuk elaun tetap dan caruman KWSP oleh majikan

** Paid to Holding Corporation / Dibayar kepada Perbadanan Induk

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RELATIONS WITH SHAREHOLDERS AND INVESTORS

The Board recognises the importance of timely and equaldissemination of information to shareholders andstakeholders. In this respect, the Company strictly adheresto the disclosure requirements of the Kuala Lumpur StockExchange (“KLSE”). Any information that may be regardedas undisclosed material or price sensitive would not begiven to any single shareholder until after theannouncement to KLSE has been made.

Press conference was held after the Annual GeneralMeeting to brief members of the media on key events ofthe Group. All shareholders receive the Annual Report andare encouraged to attend and participate in the AnnualGeneral Meetings.

ANNUAL GENERAL MEETING (“AGM”)

The AGM is still the principal forum for dialogue withshareholders. Notice of the AGM and related papers aredistributed to shareholders at least 21 days before the dateof the meeting.

At each AGM, the Board presents the progress andperformance of the business and provides shareholderswith the opportunity to raise questions pertaining to theperformance of the Group. During the meeting, theManaging Director, and where appropriate, the Chairmanof the Audit Committee are available to respond toshareholders’ questions during the meeting. Whereappropriate, the Chairman of the Board will undertake toprovide a written answer to any significant question thatcannot be readily answered on the spot.

HUBUNGAN DENGAN PARA PEMEGANG SAHAM DANPELABUR

Lembaga Pengarah mengiktiraf kepentingan penyebaranmaklumat secara saksama dan tepat pada masanya kepadapara pemegang saham dan pihak-pihak berkepentingan.Dalam hal ini, Syarikat mematuhi sepenuhnya keperluanpendedahan BSKL. Syarikat mengambil sikap berhati-hatiagar tidak mendedahkan maklumat yang dianggap sulitmengenai Syarikat sebelum sebarang pengumuman kepadaBSKL dibuat.

Sidang media turut diadakan selepas Mesyuarat AgungTahunan untuk memaklumkan kepada pihak media tentangacara-acara utama Kumpulan. Semua pemegang sahammenerima Laporan Tahunan dan digalakkan untukmenghadiri dan mengambil bahagian dalam MesyuaratAgung Tahunan.

MESYUARAT AGUNG TAHUNAN

Mesyuarat Agung Tahunan masih merupakan forum utamauntuk sesi dialog dengan para pemegang saham. NotisMesyuarat Agung Tahunan dan perkara-perkara yangberkaitan diedarkan kepada pemegang saham sekurang-kurangnya 21 hari sebelum tarikh mesyuarat.

Dalam setiap Mesyuarat Agung Tahunan, LembagaPengarah akan membentangkan laporan kemajuan danpencapaian bisnes serta memberi peluang kepada parapemegang saham untuk membangkitkan sebarang isu ataupersoalan berkaitan pencapaian Kumpulan. SemasaMesyuarat, Pengarah Urusan dan di mana perlu, PengerusiJawatankuasa Audit, akan menjawab persoalan yangdiajukan oleh pemegang saham. Pengerusi akanmemberikan jawapan bertulis berhubung sebarangpersoalan yang signifikan yang tidak dapat dijelaskansemasa Mesyuarat jika diperlukan.

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ACCOUNTABILITY AND AUDIT

AUDIT COMMITTEE

The Audit Committee consists of two Independent Directorsand one Non-Independent Non-Executive Director with TanSri Datuk Arshad Ayub as Chairman. The composition andterms of reference of the Committee are also provided onpages 56 to 58. Ms Kua Hwee Sim, who possessed thestipulated accountancy qualifications, was appointed as aMember of the Committee on 1 August 2002.

In addition to the stipulated duties and responsibilities, the Audit Committee also assumes the functions of RiskManagement Committee.

INTERNAL CONTROL

The Board continues to maintain a sound system ofinternal control as well as management information system.The detail of this part is further elaborated in theStatement on Internal Control on pages 49 to 55.

RELATIONSHIP WITH THE AUDITORS

The external auditors, Messrs. Ernst & Young, havecontinued to report to shareholders on their opinion whichare included as part of Company’s financial reports withrespect to their audit on each year’s statutory financialstatements. In doing so, the Board through the AuditCommittee establishes an appropriate relationship with theexternal auditors to meet the auditors’ professionalrequirements. From time to time, they highlight to theAudit Committee and the Board, matters that requireBoard’s attention.

AUDIT DAN KEBERTANGGUNGJAWABAN

JAWATANKUASA AUDIT

Jawatankuasa Audit terdiri daripada dua Pengarah Bebasdan seorang Pengarah Bukan Eksekutif, dan dipengerusikanoleh Tan Sri Datuk Arshad Ayub. Komposisi serta bidangtugas Jawatankuasa Audit adalah seperti di halaman 56hingga 58. Cik Kua Hwee Sim telah dilantik sebagai ahliJawatankuasa Audit pada 1 Ogos 2002. Beliau jugamemiliki kelayakan perakaunan seperti yang disyaratkanoleh BSKL.

Di samping tugas dan tanggungjawab sedia ada,Jawatankuasa Audit turut menjalankan fungsi JawatankuasaPengurusan Risiko.

KAWALAN DALAMAN

Lembaga Pengarah terus mengekalkan sistem kawalandalaman serta sistem pengurusan maklumat yang mantap.Butiran lengkap bahagian ini dijelaskan dalam PenyataKawalan Dalaman di mukasurat 49 hingga 55.

PERHUBUNGAN DENGAN JURUAUDIT LUAR

Juruaudit luar, Tetuan Ernst & Young, telah melaporkanpendapat mereka secara berterusan kepada para pemegangsaham sebagai sebahagian daripada laporan kewanganSyarikat berkaitan pengauditan mereka ke atas penyatakewangan berkanun. Dengan yang demikian, LembagaPengarah melalui Jawatankuasa Audit telah mengekalkanperhubungan yang baik dengan juruaudit luar bagimemenuhi keperluan profesional mereka. Dari masa kesemasa, juruaudit akan mengemukakan perkara-perkarayang perlu diberi perhatian oleh Lembaga Pengarah kepadaJawatankuasa Audit dan Lembaga Pengarah.


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FINANCIAL REPORTING AND STATEMENT OFDIRECTORS’ RESPONSIBILITY FOR PREPARING THEFINANCIAL STATEMENTS

In presenting the annual financial statements and quarterlyannouncement to shareholders, the Directors aim topresent a balanced and understandable assessment of theGroup’s position and prospects. This also applies to otherprice-sensitive public reports and reports to regulators.

The Directors are required by the Companies Act 1965 toprepare financial statements which are in accordance withthe applicable approved accounting standards and give atrue and fair view of the statement of affairs of theCompany and the Group at the end of the financial yearand of the results and cash flows of the Company and theGroup for the financial year.

Following discussions with the external auditors, theDirectors consider that the Company uses appropriateaccounting policies that are consistently applied andsupported by reasonable as well as prudent judgments andestimates, and that all applicable accounting standards havebeen followed during the preparation of the financialstatements. The financial statements are prepared on thegoing concern basis as the Directors have a reasonableexpectation that the Group and Company have adequateresources to continue in operational existence for theforeseeable future.

LAPORAN KEWANGAN DAN PERNYATAANTANGGUNGJAWAB PENGARAH TERHADAPPENYEDIAAN PENYATA KEWANGAN

Dalam menyediakan penyata kewangan tahunan danpengumuman suku tahunan kepada pemegang saham,Lembaga Pengarah berhasrat menyediakan penilaiankedudukan dan prospek Kumpulan yang seimbang danmudah difahami. Ini turut meliputi laporan umum lain yangberkait langsung dengan sensitiviti harga saham danlaporan kepada pihak berkuasa.

Akta Syarikat 1965 mensyaratkan para Pengarahmenyediakan penyata kewangan bagi setiap tahunkewangan yang disediakan bersesuaian dengan piawaianperakaunan yang diluluskan untuk diterimapakai, danmemberikan gambaran yang benar dan saksamaberhubung hal ehwal Syarikat dan Kumpulan pada hujungtahun kewangan dan keputusan serta aliran tunai Syarikatdan Kumpulan bagi tempoh tersebut.

Lanjutan daripada perbincangan dengan juruaudit luar, paraPengarah berpendapat bahawa Syarikat menggunakan polisiperakaunan yang bersesuaian secara konsisten dandisokong oleh anggaran yang bersifat munasabah danberhemah, serta semua piawaian perakaunan yang sesuaitelah diterapkan di dalam penyediaan penyata kewangan.Penyata kewangan disediakan atas dasar bahawa LembagaPengarah menjangkakan Syarikat dan Kumpulanmempunyai sumber-sumber yang mencukupi untuk terusberoperasi.

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The Directors have responsibility to ensure that theCompany keeps its accounting records which disclose witha reasonable accuracy the financial position of the Groupand Company and that the financial statements complywith the Companies Act 1965. The Directors have overallresponsibilities in taking steps that are reasonably open tothem to safeguard the assets of the Group, to prevent anddetect fraud and other irregularities.

This statement is made in accordance with the resolutionsof the Board of Directors dated 24 February 2003.

Para Pengarah bertanggungjawab memastikan Syarikatmenyelenggara rekod perakaunan dengan teratur danmemberikan gambaran yang tepat dan wajar ke ataskedudukan kewangan Syarikat dan Kumpulan serta penyatakewangan tersebut telah disediakan menurut peruntukanAkta Syarikat 1965. Para Pengarah juga bertanggungjawabuntuk memelihara semua aset Syarikat dan Kumpulan,sekaligus mengambil langkah-langkah yang wajar untukmencegah dan mengesan penipuan dan lain-lain perkarayang melanggar peraturan.

Pernyataan ini dibuat mengikut resolusi Lembaga Pengarahbertarikh 24 Februari 2003.


TAN SRI DATO’ MUHAMMAD ALI HASHIM ROZAN BIN MOHD SA’ATChairman / Pengerusi Managing Director / Pengarah Urusan

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Internal Control StatementPenyata Kawalan Dalaman

The Malaysian Code on Corporate Governance (“theCode”) requires public listed companies to maintain asound system of internal control to safeguard shareholders’investments and Group assets. Paragraph 15.27(b) of theKLSE Listing Requirements require directors of listedcompanies to include a statement in annual reports on thestate of their internal controls.

The Board has taken steps to continuously improve theinternal control system and strengthen the transparencyand efficiency of business operations. The Company ispleased to provide the following statement, which outlinesthe nature and scope of internal control of the Companyand the Group during the year.

RESPONSIBILITY

The Board is ultimately responsible for the Company’sinternal control system as well as reviewing the adequacyand integrity of those systems that includes theestablishment of the appropriate control environment andframework. The overall system is structured on the UltimateHolding Corporation, namely Johor Corporation’s (JCorp)Group PEKASA system which is fundamentally based onthe Committee of Sponsoring Organisations of theTreadway Commission’s (“COSO”) Internal ControlFramework.

In view of the limitations inherent in any internal controlsystem, it should be noted that such systems are designedto manage rather than eliminate the risk of failure toachieve corporate and business objectives. Accordingly, thesystem can only provide reasonable but not absoluteassurance against material misstatement or loss.

The Board is of the view that the Group has a process foridentifying, evaluating, monitoring and managing theGroup’s significant risks in the period under review. Themore structured approach was implemented across theGroup starting 14 June 2002. The Board maintains regularmonitoring of the Group’s risk management processes andprovides guidance to continuously improve themanagement of risks.

Kod Tadbir Urus Korporat Malaysia menghendaki syarikattersenarai menyelenggara sistem kawalan dalaman yangmantap untuk melindungi pelaburan pemegang saham danaset Kumpulan. Perenggan 15.27(b) Peraturan PenyenaraianBSKL menghendaki pengarah-pengarah syarikat tersenaraiuntuk memberikan pernyataan berkaitan keadaan kawalandalaman organisasi di dalam laporan tahunan.

Lembaga Pengarah telah mengambil langkah-langkah perluuntuk memperbaiki sistem kawalan dalaman danmemperkukuhkan ketelusan dan kecekapan operasi bisnessecara berterusan. Syarikat dengan sukacitanya memberikanpernyataan berikut, yang menggariskan jenis dan ruanglingkup kawalan dalaman Syarikat dan Kumpulan dalamtahun kewangan.

TANGGUNGJAWAB

Pada dasarnya Lembaga Pengarah bertanggungjawabpenuh terhadap sistem kawalan dalaman Syarikat disamping mengkaji kecukupan serta kebolehpercayaansistem tersebut termasuk mewujudkan persekitaran dankerangka kawalan yang bersesuaian. Keseluruhan sistemdirangka berdasarkan sistem PEKASA yang diperkenalkanoleh Perbadanan Induk Johor Corporation (JCorp) mengikutRangka Kerja Kawalan Dalaman COSO (Committee ofSponsoring Organisations of the Treadway Commission).

Memandangkan wujud keterbatasan dalam mana-manasistem kawalan dalaman, perhatian harus diberi bahawasistem kawalan dalaman ini direka bentuk untuk mengurusdan bukan untuk menghapuskan sama sekali risikokegagalan mencapai matlamat korporat dan bisnes.Sehubungan itu, ianya hanya dapat memberikan jaminanyang munasabah dan bukan bersifat mutlak terhadap salahnyata atau kerugian yang besar.

Lembaga Pengarah berpendapat bahawa di dalam tahun2002 terdapat proses untuk mengenalpasti, menilai,mengawalselia dan mengurus risiko-risiko yang signifikanyang dihadapi Kumpulan. Proses pengurusan risiko yanglebih tersusun telah dilaksanakan oleh Kumpulan bermula14 Jun 2002. Lembaga Pengarah sentiasa mengawal prosespengurusan risiko Kumpulan dan memberi panduan kearah peningkatan pengurusan risiko.

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RISK MANAGEMENT

The Group has established Risk Management Frameworkwhich was adopted from the Australian/New ZealandStandard (“AS/NZS”) 4360:

PENGURUSAN RISIKO

Kumpulan mempunyai Rangka Kerja Kawalan Dalamanyang diadaptasi daripada Piawaian Australia/New Zealand(“AS/NZS”) 4360:

The formalisation of the Risk Management Frameworkinvolved the following initiatives, which were taken duringthe year:• The Board in February 2002 had approved the

appointment of the Chief Risk Officer (“CRO”) and hisdeputy. The CRO is generally responsible for developingand implementing the Enterprise-Wide RiskManagement (“EWRM”) strategy that includes allaspects of an organisation risk. Currently, the AuditCommittee is assuming the functions of RiskManagement Committee. As the Board fully supportsthe programme, the Risk Management Policy wasapproved in November 2002.

Establish the contextMenetapkan konteks

Indentify risksKenalpasti risiko

Analyse risksMenganalisa risiko

Evaluate risksMenilai risiko

Treat risksMenangani risiko

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rev

iew

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lia &

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Com

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e &

con

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Kum

unik

asi &

run

ding

Assess risks / Menaksir risiko

Source / Sumber : AS/NZS 4360

Pembentukan kerangka pengurusan risiko yang formalmelibatkan beberapa inisiatif yang telah diambil padasepanjang tahun kewangan seperti:• Lembaga Pengarah telah meluluskan perlantikan Ketua

Pegawai Risiko (“CRO”) dan timbalannya pada bulanFebruari 2002. Secara amnya CRO bertanggungjawabmembentuk dan melaksanakan strategi PengurusanRisiko Kumpulan (“EWRM”) yang merangkumi semuaaspek risiko organisasi. Pada masa ini, fungsiJawatankuasa Pengurusan Risiko dilaksanakan olehJawatankuasa Audit. Bagi menyokong program ini,Lembaga Pengarah telah meluluskan Polisi PengurusanRisiko pada November 2002.


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• Dalam memastikan kelancaran perlaksanaan prosespengurusan risiko, Syarikat telah membentuk strukturpengurusan risiko. Semua ketua jabatan dan syarikatanak akan memberikan laporan pengurusan risiko kepadaCRO pada setiap suku tahun. Laporan tersebut akandibentangkan kepada Jawatankuasa Pengurusan Risiko.

• Satu seminar telah diadakan dalan bulan Jun 2002 dandihadiri oleh Pengurus Besar merangkap CRO,pengurus-pengurus kanan dan semua ketua jabatan.Seminar tersebut bertujuan memberi gambaranberkaitan struktur EWRM. Para peserta juga telahdidedahkan kepada kemunculan dan kecenderunganamalan pengurusan risiko.

• CRO serta beberapa pegawai telah menjalani latihanmenggunakan Perisian Risk Advisor bertujuanmeningkatkan kecekapan dan keberkesanan automasidan pengurusan program pengurusan risiko yang berjaya.

• Sebanyak empat bengkel telah dijalankan sepanjangbulan Julai 2002 bagi memudahcara penggunaandokumen risiko. Para peserta telah dibahagikan kepadabeberapa kumpulan kecil untuk mengaplikasi ProsesPengurusan Risiko ke atas objektif jabatan masing-masing. Setelah mengenalpasti semua risiko yang bolehmenggagalkan atau menjejaskan pencapaian objektifmasing-masing. Setiap Kumpulan kemudiannyamembentangkan hasil penilaian risiko untukpertimbangan.

Risiko yang dihadapi oleh Sindora boleh dibahagikankepada empat kategori iaitu risiko strategik, risikokewangan, risiko operasi dan bencana.

Pengurusan risiko strategik berhubungkait dengan hala tujustrategik Syarikat. Risiko strategik diambil apabila Syarikatmenceburi bisnes baru. Pada masa lalu, Kumpulan terlibatdalam bisnes minyak sawit dan perkayuan. Aktiviti utamaKumpulan bakal mencakupi bisnes “Intrapreneur Venture”di mana Sindora akan mengambil alih syarikat-syarikatintrapreneur yang berdaya maju dan menguntungkan daridalam dan luar Kumpulan JCorp. Sudah pasti risiko bisnesakan memberikan cabaran baru kepada pengurusan danbisnes Kumpulan.

• In order to ensure smooth implementation of riskmanagement process, the Company had formulated therisk management structure. All heads of departmentsand subsidiaries will submit quarterly risk managementreports to the CRO to be reported in the RiskManagement Committee.

• Through a seminar held in June 2002, the GeneralManager cum CRO, senior managers and all heads ofdepartments defined the EWRM process structure.Participants were also introduced to trends andemerging practices in risk management.

• The CRO and appointed officers were trained inrunning of the Risk Advisor Software to enable efficientand effective automation of the establishment andmanagement of a successful risk managementprogramme.

• Four workshops were conducted in July 2002 tofacilitate the usage of risk documents. During theworkshops, participants were divided into smallergroups to apply the Risk Management Process inrelation to their respective department’s objectives, after identifying all possible risks that might impair theachievement of their objectives. Each group thenpresented their risk assessment outcome fordeliberation.

The risks that Sindora faces can be categorised intostrategic risks, financial risks, operational risks and hazard.

Strategic risk management is an area that deals withCompany’s strategic directions. Strategic risks are takenwhen Sindora embarks on new ventures. In the past, theGroup has been principally involved in palm oils andtimber. Subsequently, the Group’s principal activities willnow include the Intrapreneur Venture business, whereSindora will acquire profitable intrapreneur businesseswithin and outside JCorp Group. In this connection, thebusiness risks associated with the proposal will present anew set of business and management challenges toSindora Group.

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Financial risks are mainly risks with cash flows andassociated financial risks that are not managed cost-effectively. The Company will involves in another corebusiness, termed “Intrapreneur Venture”, thus theCompany now has to measure and quantify all financialexposures and eventually manage these risks on anenterprise-wide basis.

Operational risks are risks associated with operations andineffective execution of the Company’s business strategies,including customers’ satisfaction, quality, cost and timeperformance objectives. It deals with the day-to-day risksfaced by the Group.

Hazard risks are risks that may have an impact on theorganisation such as lawsuits and natural disasters. Theyalso include risks of handling hazardous substances likechemicals, waste, explosives, etc. Occupational health andsafety issues are classic examples.

PILLARS OF INTERNAL CONTROL

The process of governing the effectiveness and integrity ofthe internal control system is carried throughout thevarious areas:

Internal Audit FunctionThe revised Audit Charter was approved in August 2002.The Internal Audit Department (“IAD”) reports to the BoardAudit Committee (“BAC”).

The core function of the internal auditors is to perform anindependent appraisal of the Group’s activities and toprovide assurance on the proper implementation of theinternal control system. It performs scheduled reviews ofoperation and compliance with policies and procedures toassess the effectiveness of internal control. The results ofthe audits are reviewed by the BAC and forwarded to theManagement for attention and necessary corrective actionsas recommended.

Risiko kewangan pula berkait rapat dengan aliran tunaidan risiko kewangan yang tidak diurus secara kos-efektif.Dengan menceburi bisnes asas yang lain dikenali sebagai“Intrapreneur Venture”, Syarikat perlu mengukur sertamenilai semua risiko kewangan yang berkaitan sertamenguruskannya di peringkat Kumpulan.

Kurang keberkesanan dalam melaksanakan strategi bisnesSyarikat, termasuk kepuasan pelanggan dan mencapaiobjektif kualiti, kos dan pencapaian masa mengundangrisiko operasi. Risiko kategori ini berkait rapat denganperjalanan operasi harian Kumpulan.

Risiko bencana adalah risiko yang boleh memberi kesanterhadap organisasi seperti tindakan mahkamah ataubencana alam. Ianya turut melibatkan risiko mengendalikanbahan-bahan berbahaya seperti bahan kimia, sisa berjadual,bahan letupan dan sebagainya. Isu-isu keselamatan dankesihatan pekerjaan adalah contoh ketara.

TUNGGAK KAWALAN DALAMAN

Proses yang menentukan keberkesanan dankebolehpercayaan sistem kawalan dalaman dilaksanakanmelalui pelbagai cara:

Fungsi Audit DalamanPiagam Audit yang telah dikaji semula telah dibentang dandiluluskan pada Ogos 2002. Jabatan Audit Dalam (“JAD”)melapor terus kepada Jawatankuasa Audit.

Juruaudit dalaman berperanan menjalankan penilaian keatas aktiviti Kumpulan secara bebas dalam memberikanjaminan sistem kawalan dalaman dilaksanakan secara wajar.JAD melaksanakan audit secara berkala ke atas operasi dankepatuhan terhadap polisi dan prosedur untuk menilaikeberkesanan kawalan dalaman. Semua laporan auditdibentang kepada Jawatankuasa Audit dan dipanjangkankepada Pengurusan untuk perhatian dan tindakanpembetulan.


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With respect to operation of the Group’s oil palm estatesand palm oil mill, through the engagement ofmanagement agents, the assurance on the internal controland management information systems rely on reviews andtests carried out by the internal audit function of themanagement agents. They would present the result of theirreview to the BAC and the IAD also receives the auditreports.

When necessary, the IAD might seek advice and assistancefrom the Group Compliance and Internal Audit Departmentof JCorp.

Governance CommitteesWhilst the Board maintains full control and direction overappropriate strategic, financial, organisational andcompliance issues, it has delegated to executivemanagement the implementation of the system of internalcontrol. The Board has established an organisationalstructure that formally defines lines of responsibility anddelegation of authority.

The Executive Committee receives reports from variousgovernance committees – Tender Committees, OccupationalSafety and Health Committee, etc. setting out keyperformance and risk indicators and considers possiblecontrol issues brought to their attention.

The Board’s agenda includes regular items for considerationof risk and control and receives reports thereon from theExecutive Committee and Audit Committee.

Regulators and External AuditorsThe external auditors are engaged to express an opinionon the financial statements. They review and test the datacontained in the financial statements to the extentnecessary to express their audit opinion. They discussedwith management the reporting of operational results andthe financial condition of the Group and present theirfindings to the BAC.

Bagi operasi ladang dan kilang kelapa sawit milik Kumpulanyang diuruskan melalui pelantikan sebuah agensipengurusan, jaminan bagi sistem kawalan dalaman danpengurusan maklumat bersandar kepada penelitian danujian yang dijalankan oleh fungsi audit dalaman agensipengurusan berkenaan. Unit audit dalaman agensiberkenaan akan membentangkan laporan audit merekakepada Jawatankuasa Audit Sindora. JAD turut menerimalaporan audit yang berkenaan.

JAD juga boleh mendapatkan khidmat nasihat dan bantuandaripada Jabatan Pematuhan dan Audit Dalaman KumpulanJCorp apabila diperlukan.

Jawatankuasa-jawatankuasaDi samping mengekalkan hala tuju dan kawalansepenuhnya ke atas isu-isu strategik, kewangan danpematuhan, Lembaga Pengarah telah memberitanggungjawab melaksanakan sistem kawalan dalamankepada barisan pengurusan Sindora. Lembaga Pengarahtelah mewujudkan struktur organisasi dengan pembahagiankuasa dan tanggungjawab yang jelas.

Jawatankuasa Eksekutif menerima laporan daripada pelbagaijawatankuasa berkaitan pencapaian dan risiko utama danmenimbangkan beberapa isu kawalan yang dibawa untukperhatian mereka, antaranya Jawatankuasa Tender,Jawatankuasa Keselamatan dan Kesihatan Pekerjaan, danlain-lain.

Mesyuarat Lembaga Pengarah turut meliputi agenda tetapberkaitan risiko dan kawalan untuk perbincangan danpertimbangan. Jawatankuasa Eksekutif dan JawatankuasaAudit juga melaporkan hasil perbincangan mereka kepadaLembaga Pengarah.

Pihak Berkuasa dan Juruaudit LuarJuruaudit luar yang bertauliah dilantik bagi memberikanpendapat ke atas penyata kewangan. Mereka meneliti danmenguji data yang terkandung dalam penyata kewanganke tahap yang diperlukan sebelum memberikan pendapataudit mereka. Laporan keputusan operasi dan kedudukankewangan Kumpulan dibincangkan dengan pihakPengurusan, manakala penemuan-penemuan auditdibentangkan kepada Jawatankuasa Audit.

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Inspectors from various authorities and agencies such asEnvironmental Department, Occupational Safety and HealthDepartment and Fire and Rescue Department periodicallyconduct inspections on the Group’s premises to ensuresatisfactory condition on occupational safety and health.

Management Information SystemThe Group has a management information system thatgenerally meets the IT security and control objectives andfulfils the management and users current operationalrequirements. The control objectives for the ManagementInformation System are as follows:

Confidentiality – protecting sensitive information fromunauthorised disclosure

Integrity – safeguarding the accuracy andcompleteness of information andcomputer software

Availability – ensuring the information and vitalservices are available to all users whenrequired

Compliance – ensuring compliance with regulatory andstatutory requirements.

OTHER KEY ELEMENTS OF INTERNAL CONTROL

Apart from risk management and audits, the Board has thefollowing key elements of the Group's internal controlsystems:• The Board meets at least quarterly and has a formal

schedule of matters reserved for Board decision. TheManaging Director leads the presentation of boardpapers and provides comprehensive explanation ofpertinent issues.

• The BAC has full access to both internal and externalauditors and receives reports on all audits performed.The BAC also discusses quarterly unaudited financialresults.

Pegawai pemeriksa daripada beberapa agensi seperti JabatanAlam Sekitar, Jabatan Keselamatan dan Kesihatan Pekerjaandan Jabatan Bomba dan Penyelamat sering melakukanpemeriksaan ke atas premis Kumpulan secara berkala bagimemastikan keadaan keselamatan dan kesihatan di tempatkerja berada pada tahap yang memuaskan.

Sistem Pengurusan MaklumatKumpulan mempunyai sistem pengurusan maklumat yangpada dasarnya memenuhi objektif keselamatan dan kawalanteknologi maklumat serta mampu memenuhi keperluanoperasi semasa pengurusan dan pengguna. Objektif kawalanbagi sistem pengurusan maklumat adalah seperti berikut:

Kerahsiaan – Melindungi maklumat yang bersifatrahsia daripada pendedahan tanpakebenaran

Kebolehpercayaan– Memastikan ketepatan dankesempurnaan maklumat dan perisiankomputer

Kesediaan – Memastikan maklumat danperkhidmatan yang penting tersediakepada semua pengguna apabiladiperlukan

Pematuhan – Memastikan pematuhan kepadaperaturan dan keperluan berkanun

LAIN-LAIN ELEMEN KAWALAN DALAMAN

Selain daripada aktiviti audit dan pengurusan risiko, sistemkawalan dalaman turut meliputi elemen-elemen berikut:• Lembaga Pengarah bermesyuarat sekurang-kurangnya

pada setiap suku tahun dengan jadual perkara formalyang dikhaskan untuk keputusan Lembaga Pengarah.Pengarah Urusan mengetuai pembentangan kertasLembaga Pengarah dan memberikan penjelasan yangkomprehensif ke atas perkara-perkara yangdibangkitkan.

• Jawatankuasa Audit mempunyai akses kepada kedua-dua juruaudit dalaman dan luar, dan menerima laporansetiap lawatan audit yang dilakukan. JawatankuasaAudit turut membincangkan keputusan kewangan tidakberaudit bagi setiap suku tahun.


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• Clearly defined delegation of responsibilities tocommittees of the Board and to management andoperating units, including authorisation levels for allaspects of the business, which are set out in ApprovingAuthority manual.

• Regular and comprehensive information provided tomanagement, covering financial performance and keybusiness indicators.

• Detailed budgeting process where operating unitsprepare budgets for the coming year which areapproved at operating unit level, the Board and theHolding Corporation.

• As the organisation is pursuing for ISO 9001:2000Certification, documented objectives, internal policiesand procedures are being reviewed to cover the wholeorganisation. Only certain processes are covered underthe existing ISO 9002:1994 Certification.

• Internal Quality Audits (“IQA”) are performed to ensureconformance to systems and procedures. Suchconformances are further ensured by surveillance auditby SGS Yarsley (M) Sdn Bhd.

• Total Quality Management and Quality Control Circleprogrammes.

This statement is made in accordance with the resolutionsof the Board of Directors dated 24 February 2003.

• Pembahagian tanggungjawab secara jelas kepadajawatankuasa Lembaga Pengarah dan juga kepadapengurusan dan unit-unit operasi, termasuk had kuasaseperti yang termaktub dalam manual ‘ApprovingAuthority’.

• Maklumat yang komprehensif disampaikan kepadapengurusan secara berterusan, meliputi prestasikewangan dan petunjuk-petunjuk bisnes.

• Proses penyediaan bajet yang teliti di mana setiap unitmenyediakan bajet tahun mendatang, yang mana ianyadiluluskan di peringkat unit, Perbadanan Induk danLembaga Pengarah.

• Syarikat sedang di dalam usaha mendapatkan PensijilanISO 9001:2000 di mana dokumen berkaitan objektif,polisi dan prosedur dalaman dikaji semula merangkumikeseluruhan organisasi. Sebelum ini, Pensijilan ISO9002:1994 hanya merangkumi beberapa proses tertentusahaja.

• Audit kualiti dalaman dijalankan bagi memastikanpematuhan kepada sistem dan prosedur. Audit kualitiseterusnya dilakukan oleh pihak SGS Yarsley (M) SdnBhd bagi tujuan pensijilan.

• Program Pengurusan Kualiti Menyeluruh dan KumpulanKawalan Kualiti.

Pernyataan ini dibuat selaras dengan resolusi LembagaPengarah bertarikh 24 Februari 2003.

TAN SRI DATO’ MUHAMMAD ALI HASHIM ROZAN BIN MOHD SA’ATChairman/Pengerusi Managing Director/Pengarah Urusan

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OBJECTIVES

The objectives of the Audit Committee are:

a. To comply with Section 15A and 344A of the KualaLumpur Stock Exchange Listing Requirements.

b. To ensure that the results of internal and external auditfindings are brought up to the highest level forconsideration without detailed involvement of the fullBoard of Directors.

COMPOSITION

The Board shall elect an Audit Committee, comprising nofewer than three members of whom the majority are notfrom among the executive directors of the Company. TheChairman of the Committee shall be appointed by the Board.

The Company secretary shall be the secretary of theCommittee.

MATLAMAT

Matlamat Jawatankuasa Audit adalah:

a. Untuk mematuhi Seksyen 15A dan 344A sebagai Syarat-syarat Penyenaraian di Bursa Saham Kuala Lumpur.

b. Untuk memastikan segala keputusan audit dalaman danluaran diketengahkan ke tahap yang tertinggi untukdipertimbangkan tanpa melibatkan kehadiran LembagaPengarah secara penuh.

KOMPOSISI

Lembaga akan melantik satu Jawatankuasa Audit,merangkumi tidak kurang dari tiga orang ahli yang manabilangan majoriti bukan dari kalangan pengarah-pengaraheksekutif Syarikat.

Pengerusi Jawatankuasa akan dilantik oleh LembagaPengarah. Setiausaha Syarikat akan bertindak sebagaisetiausaha kepada Jawatankuasa.

Audit CommitteeJawatankuasa Audit

AUDIT COMMITTEE

The Audit Committee was establishedon 2 May 1995 to act as a Committeeof the Board of Directors.

COMPOSITION OF MEMBERS

ChairmanTan Sri Datuk Arshad Ayub– Independent Non-Executive Director

Members

Hasnah bte Ali– Independent Non-Executive Director(Resigned on 16 August 2002)

Mohammad bin Alwi– Non-Independent Non-Executive Director(Resigned on 20 February 2003)

Kua Hwee Sim– Independent Non-Executive Director(Appointed on 1 August 2002)

Halmi bin Jasmin– Non-Independent Non-Executive Director(Appointed on 20 February 2003)

JAWATANKUASA AUDIT

Jawatankuasa Audit telah ditubuhkanpada 2 Mei 1995 untuk bertindaksebagai sebuah Jawatankuasa bagiLembaga Pengarah.

KEAHLIAN

PengerusiTan Sri Datuk Arshad Ayub– Pengarah Bebas Bukan Eksekutif

Ahli-Ahli

Hasnah bte Ali– Pengarah Bebas Bukan Eksekutif(Bersara pada 16 Ogos 2002)

Mohammad bin Alwi– Pengarah Bukan Bebas Bukan Eksekutif(Bersara pada 20 Februari 2003)

Kua Hwee Sim– Pengarah Bebas Bukan Eksekutif(Dilantik pada 1 Ogos 2002)

Halmi bin Jasmin– Pengarah Bukan Bebas Bukan Eksekutif(Dilantik pada 20 Februari 2003)

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AUTHORITY

The Committee is authorised by the Board:

a. To initiate the investigation of any activity within its termsof reference and to seek any information it requires fromany employee and all employees are directed tocooperate with any request made by the Committee.

b. To obtain outside legal or other independentprofessional advice and to secure the attendance ofoutsiders with relevant experience and expertise if itconsiders this necessary.

FUNCTIONS

a. To review together with the external auditors, the auditplan, scope of the audit and the areas of audits of theCompany/Group.

b. To review together with the external auditors, theirevaluation of the system of the internal controls andaudit findings.

c. To discuss problems and reservations arising from theaudit, and any other matters the auditors may wish todiscuss.

d. To review the external auditor’s management letter andmanagement’s response.

e. To review the audit report with the external auditors.f. To review and report the assistance given by the

Company/Group’s Officers to the external auditors andthe overall conduct of the audit.

g. To make appropriate recommendations to the Board onmatters of resignation or dismissal of external auditors.

h. To review and report adequacy of the scope, functionsand resources of the internal audit function and that ithas the necessary authority to carry out its works.

i. To review the quarterly results and annual financialstatements of the Company/Group.

j. To review any related party transactions that may arisewithin the Company/Group.

k. To perform any other functions as may be agreed bythe Audit Committee and the Board of Directors.

MEETING

Audit Committee meetings held for the financial year ended31 December 2002 and the attendance of each member isas follows:

KUASA

Jawatankuasa diberi kuasa oleh Lembaga Pengarah:

a. Untuk menyiasat apa jua kegiatan menurut bidangkuasanya dan memperolehi maklumat yang diperlukandari mana-mana pekerja dan mereka ini diarah untukberkerjasama sepenuhnya dengan Jawatankuasa.

b. Untuk memperolehi khidmat guaman luar, nasihatprofesional persendirian dan mendapatkan khidmatorang awam yang mempunyai pengalaman dankepakaran yang berkaitan.

FUNGSI

a. Mengkaji pelan audit, skop audit dan bidang kuasa auditbagi Syarikat/Kumpulan bersama-sama Juruaudit Luar.

b. Menilai sistem kawalan dalaman dan penemuan auditbersama-sama Juruaudit Luar.

c. Membincangkan permasalahan dan keraguan yangdibangkitkan daripada audit serta lain-lain perkara yangingin dibincangkan oleh Juruaudit.

d. Menilai surat pengurusan oleh Juruaudit Luar danmaklumbalas daripada pihak Pengurusan.

e. Meneliti laporan audit bersama-sama Juruaudit Luar.f. Mengkaji dan melaporkan bantuan yang diberikan oleh

pegawai Syarikat/Kumpulan kepada Juruaudit Luarsepanjang tugas pengauditan.

g. Mencadangkan tindakan yang bersesuaian kepadaLembaga Pengarah berkaitan perletakan jawatan ataupemecatan Juruaudit Luar.

h. Menilai dan menyenaraikan keperluan skop audit, fungsidan sumber-sumber fungsi Audit Dalaman yangmemerlukan kebenaran tertentu untuk menjalankan tugas.

i. Mengkaji keputusan suku tahunan dan penyatakewangan tahunan Syarikat/Kumpulan.

j. Mengkaji mana-mana transaksi pihak-pihak berkaitandengan Syarikat/Kumpulan.

k. Menjalankan lain-lain tugas yang dipersetujui olehJawatankuasa Audit dan Lembaga Pengarah.

MESYUARAT

Mesyuarat Jawatankuasa Audit yang diadakan bagi tahunkewangan berakhir 31 Disember 2002 dan kehadiran setiapahli adalah seperti berikut:

Date of Meetings / Tarikh Mesyuarat

Name of Directors / Nama Pengarah 20 Feb 2002 22 May / Mei 2002 7 Aug / Ogos 2002 14 Nov 2002

Tan Sri Datuk Arshad Ayub √ √ √ √

Hasnah bte Ali √ √ √ -

Mohammad bin Alwi √ √ √ √

Kua Hwee Sim - - - √

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The Audit Committee held four meetings during thefinancial year ended 31 December 2002 with the ManagingDirector, General Manager, Finance Manager, Internal AuditManager and the Company Secretary in attendance.Representatives of the External Auditors and ManagementAgent were also invited to brief the Audit Committee onspecific issues. Evaluation was made of the audit planningstrategy of the Internal Auditors and that of the ExternalAuditors to confirm the groundwork for the annual audit ofthe Group. The External Auditors took special notice ofsignificant issues arising from the annual audit of the Group.

At the conclusion of each meeting, recommendations weremade for Management to improve on internal controls,procedures and systems of the Group, wherever appropriate.

ACTIVITIES

During the year under review, the following were theactivities of the Audit Committee:

a. Reviewed the external auditor’s audit plan, scope andareas of audits of the Company/Group, evaluation ofthe system of internal control and audit findings,management letter and management’s response andthe audit report.

b. Reviewed the quarterly results and annual financialstatements of the Company/Group.

c. Reviewed related party transactions within theCompany/Group.

d. Reviewed the suitability of the external auditors forrecommendation to the Board for reappointment andthe audit fee thereof.

e. Discussed the Revamped Kuala Lumpur Stock ExchangeListing Requirements and its Practice Notes, particularlyon the Malaysian Code of Corporate Governance andthe State of Internal Control.

f. Reviewed the results of the Group’s internal auditprocedures and the adequacy of action taken bymanagement based on the reports.

g. Reviewed and approved the 2003 Internal Audit Plan.

Mesyuarat Jawatankuasa Audit berlangsung 4 kali setahunbagi tahun kewangan berakhir 31 Disember 2002 yangdihadiri oleh Pengarah Urusan, Pengurusan Besar, PengurusKewangan, Pengurus Audit Dalaman dan Setiausaha Syarikat.Wakil-wakil daripada Juruaudit Luar dan Agen Pengurusanturut dijemput untuk memberi penerangan berkaitan isu-isutertentu kepada Jawatankuasa Audit. Penilaian strategiperancangan audit oleh Juruaudit Dalam dan Juruaudit Luardilakukan bagi mengesahkan kerja-kerja asas audit tahunanKumpulan. Juruaudit Luar akan membangkitkan isu-isuberkaitan dalam audit tahunan Kumpulan.

Dalam setiap mesyuarat, cadangan akan dimajukan kepadaPihak Pengurusan mengikut kesesuaian bagi meningkatkankawalan dalaman, prosedur dan sistem Kumpulan.

AKTIVITI

Berikut adalah aktiviti-aktiviti jawatankuasa Audit sepanjangtahun yang dinilai:

a. Mengkaji pelan audit, skop dan bidang kuasa auditbagi Syarikat/Kumpulan yang dibuat oleh JuruauditLuar, menilai sistem kawalan dalaman dan penemuanaudit, surat pengurusan serta maklumbalas pengurusandan laporan audit.

b. Mengkaji keputusan suku tahunan dan penyatakewangan tahunan Syarikat/Kumpulan.

c. Mengkaji transaksi pihak-pihak berkaitan dalamSyarikat/Kumpulan.

d. Mengkaji kesesuaian Juruaudit Luar bagi mencadangkanperlantikan semula dan ganjaran audit.

e. Membincangkan Peraturan Penyenaraian Bursa SahamKuala Lumpur yang baru dan Nota Amalan Praktisterutama merujuk kepada Kod Tadbir Urus KorporatMalaysia dan keadaan Kawalan Dalaman.

f. Mengkaji keputusan prosedur Audit Dalaman Kumpulandan keperluan tindakan daripada pihak Pengurusanberdasarkan laporan.

g. Mengkaji dan meluluskan Pelan Audit Dalaman bagitahun 2003.

Audit CommitteeJawatankuasa Audit

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Group’s Financial SummaryRingkasan Kewangan Kumpulan

2002 2001 2000 1999 1998DESCRIPTION/PERKARA RM’000 RM’000 RM’000 RM’000 RM’000

Turnover/Perolehan 56,588 45,940 60,215 74,087 71,208Profit/(Loss) Before Tax/

Keuntungan/(Kerugian) Sebelum Cukai 2,359 (5,885) 10,546 23,240 23,410Profit/(Loss) After Tax/

Keuntungan/(Kerugian) Selepas Cukai 931 (5,976) 6,703 23,478 14,144Profit Available For Appropriation/

Keuntungan Yang Boleh Diagih 47,216 54,396 69,972 74,981 61,871Retained Profit Carried Forward/

Keuntungan Terkumpul Dibawa Ke Hadapan 47,216 46,285 60,372 63,269 51,503

Fixed Assets/Aset Tetap 129,699 134,847 139,006 141,497 143,403Current Assets/Aset Semasa 45,132 48,155 54,358 60,172 54,610Investment/Pelaburan 840 1,457 4,591 3,652 3,637Estate Development Expenditure/

Perbelanjaan Pembangunan Ladang 29,995 29,344 28,489 25,925 25,477

Total Assets/Jumlah Aset 205,666 213,803 226,444 231,246 227,127

Current Liabilities / Tanggungan Semasa 5,089 14,019 12,105 14,182 22,696Net Current Assets /Aset Semasa Bersih 40,043 34,136 42,253 45,990 31,914Share Capital / Modal Saham 96,000 96,000 96,000 96,000 96,000Reserves /Rizab 103,824 102,893 117,125 120,022 108,256Shareholders’ Fund / Dana Pemegang Saham 199,824 198,893 213,125 216,022 204,256

Gross Profit/(Loss) Margin (%)/Margin Keuntungan/(Kerugian) Kasar (%) 4 (13) 18 31 33

Earnings/(Loss) Per Share (sen) /Pendapatan/(Kerugian) Sesaham (sen) 1 (6) 7 24 15

Net Tangible Assets Per Share (sen)/Aset Ketara Bersih Sesaham (sen) 208 207 222 226 213

Dividend Per Share (sen) /Dividen Sesaham (sen) — 8.6 10 12 11

TurnoverPerolehanRM’000

2002 56,588

2001 45,940

2000 60,215

1999 74,087

1998 71,208

Net Tangible Assets Per ShareAset Ketara Bersih SesahamSen

2002 208

2001 207

2000 222

1999 226

1998 213

Shareholders’ FundDana Pemegang SahamRM’000

2002 199,824

2001 198,893

2000 213,125

1999 216,022

1998 204,256

2002 2,359

2001 (5,885)

2000 10,546

1999 23,240

1998 23,410

2002 205,666

2001 213,803

2000 226,444

1999 231,246

1998 227,127

Profit Before Tax Keuntungan Sebelum CukaiRM’000

Total AssetsJumlah AsetRM’000

Earnings Per SharePendapatan SesahamSen

2002 1

2001 (6)

2000 7

1999 24

1998 15

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Group’s Performance ChartsCarta Prestasi Kumpulan

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Corporate DiaryDiari Korporat

5 JANUARY / JANUARI

The Sindora Berhad Group AnnualEmployee Meeting (Majlis Pedoman)was held concurrently with the HariRaya Gathering.Mesyuarat Tahunan Anggota PekerjaKumpulan Sindora Berhad (MajlisPedoman) diadakan serentak denganJamuan Hari Raya.

5-9 FEBRUARY / FEBRUARI

In-house course on Strategic SellingProcess was conducted at Sofitel PalmResort, Senai, Johor. Participantsincluded the management team,senior officers and executives fromvarious departments.Kursus dalaman iaitu Strategic SellingProcess telah dijalankan di Sofitel PalmResort, Senai, Johor. Penyertaan terdiridari pengurusan, pegawai kanan daneksekutif dari pelbagai jabatan.

4 MARCH – 30 APRIL /4 MAC – 30 APRIL

In-house computer training for clericalstaff.Kursus Komputer dalaman bagianggota pekerja perkeranian.

5-9 MARCH / MAC

The Group participated in theMalaysian International Furniture Fair2002 held at Putra World TradeCentre, Kuala Lumpur.Kumpulan menyertai Pameran PerabotAntarabangsa Malaysia 2002 yangberlangsung di Pusat Dagangan DuniaPutra, Kuala Lumpur.

23-24 APRIL

4th Surveillance Audit was carried outby SGS (Malaysia) Sdn. Bhd. to meetthe ISO 9002 requirements.Audit Pengawasan kali ke-4 telahdiadakan oleh SGS (Malaysia) Sdn. Bhd.bagi memenuhi keperluan ISO 9002.

22 MAY / MEI

29th Annual General Meeting ofSindora Berhad was held at MenaraJohor Corporation.Mesyuarat Agung Tahunan SindoraBerhad kali ke-29 bertempat diMenara Johor Corporation.

5-9 MARCH / MAC 22 MAY / MEI 10-11 JUNE / JUN

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27 JUNE / JUN

Extraordinary General Meeting ofSindora Berhad was held at MenaraJohor Corporation.Mesyuarat Agong Luarbiasa SindoraBerhad telah diadakan di MenaraJohor Corporation.

21-24 JULY / JULAI

Economic Value Added (EVA) wrap-upsession was conducted by theappointed consultant.Sesi penutup Program Economic ValueAdded (EVA) disempurnakan olehkonsultan yang dilantik.

26 JULY / JULAI

Farewell dinner for Tn Hj Abdul Razakbin Selamat, who retired as SindoraBerhad’s Managing Director witheffect from 1 May 2002 was held atPuteri Pan Pacific Hotel, Johor Bahru.Majlis makan malam sempenapersaraan Tn Hj Abdul Razak binSelamat Pengarah Urusan SindoraBerhad bermula 1 Mei 2002, telahdiadakan di Hotel Puteri Pan Pacific,Johor Bahru.

15 AUGUST / OGOS

Understanding The ISO 9001: 2000Standards program was organised byNeville Clarke (Malaysia) Sdn. Bhd.Program Pemahaman Standard ISO9001: 2000 telah dikendalikan olehNeville Clarke (Malaysia) Sdn. Bhd.

10-11 JUNE / JUN

Northern Region QCC Conventionorganised by National ProductivityCorporation was held in Penang. Sagagroup which represented theCompany received the golden award.Konvensyen QCC peringkat WilayahUtara diadakan di Pulau Pinang.Kumpulan Saga telah mewakiliSyarikat dan berjaya menerimaanugerah emas.

17-18 JUNE / JUN

Southern Region QCC Conventionorganised by National ProductivityCorporation was held in Malacca.Suria group which represented theCompany received the golden award.Konvensyen QCC peringkat WilayahSelatan diadakan di Melaka.Kumpulan Suria telah mewakiliSyarikat dan berjaya menerimaanugerah emas.

17-18 JUNE / JUN 27 JUNE / JUN

21-24 JULY / JULAI 26 JULY / JULAI

Corporate DiaryDiari Korporat

3-15 OCTOBER / OKTOBER 27 DECEMBER / DISEMBER

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3 SEPTEMBER – 15 OCTOBER / 15 OKTOBER

Inter-departmental games wereorganised at Sindora Timber Complex.Acara Sukan Tertutup Sindoradipertandingkan di KompleksPerkayuan Sindora.

4-5 SEPTEMBER

First-Aid Preliminary course wasorganised at Sindora MultipurposeHall. 25 participants including theexecutives attended the course whichwas conducted by the Johor StateRed Crescent Society.Kursus Pertolongan Cemas Asas telahdiadakan di Dewan SerbagunaSindora. Kursus anjuran PersatuanBulan Sabit Merah Negeri Johor inidisertai seramai 25 orang termasukeksekutif.

9-11 SEPTEMBER

Saga and Suria groups representedthe Company in the National QCCConvention organised by the NationalProductivity Corporation. The eventwas officiated by Dato’ Seri RafidahAziz, Minister of International Tradeand Industry.Kumpulan Saga dan Suria telahmewakili Syarikat dalam KonvensyenQCC Peringkat Kebangsaan dianjurkanoleh Perbadanan Produktiviti Negara.Majlis ini telah dirasmikan oleh Dato’Seri Rafidah Aziz, Menteri PerdaganganAntarabangsa dan Industri.

2 OCTOBER / OKTOBER

The 13th QCC Convention wasorganised at the Training and QualityRoom, Sindora Berhad withparticipation from three QCC groups.Suria group emerged as thechampion.Konvensyen QCC Kali ke-13 telahdiadakan di Bilik Latihan dan Kualiti,Sindora Berhad dengan penyertaantiga kumpulan QCC. Kumpulan Suriatelah muncul juara.

21-23 OCTOBER / OKTOBER

‘Hari Mekar’ Johor Corporation wasorganised at Nusa Mutiara Complex,Tebrau, Johor Bahru. The Groupparticipated in several activities suchas QCC, cross functional presentation,quality poster, suggestion scheme andinnovative exhibition.Hari Mekar Johor Corporation telahdianjurkan di Kompleks Nusa Mutiara,Tebrau, Johor Bahru. Kumpulan telahmenyertai pelbagai aktiviti sepertipersembahan QCC, persembahan'cross functional', poster kualiti, skimcadangan dan pameran inovatif.

18-19 NOVEMBER

5th Surveillance Audit was carried outby SGS (Malaysia) Sdn. Bhd. to meetthe ISO 9002 requirements.Audit Pengawasan kali ke-5 telahdiadakan oleh SGS (Malaysia) Sdn. Bhd.bagi memenuhi keperluan ISO 9002.

27 DECEMBER / DISEMBER

Signing ceremony to purchase equityin four companies within JCorp washeld at Menara Johor Corporation.Majlis menandatangani jualbeli ekuitidalam empat syarikat milik KumpulanJCorp diadakan di Menara JohorCorporation.

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Financial Statements

CONTENTS

Directors’ Report 65

Statement by Directors 70

Statutory Declaration 70

Report of the Auditors 71

Income Statements 72

Balance Sheets 73

Statements of Changes in Equity 74

Cash Flow Statements 75

Notes to the Financial Statements 77

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The directors have pleasure in presenting their report together with the audited financial statements of the Group and of theCompany for the financial year ended 31 December 2002.

PRINCIPAL ACTIVITIESThe principal activities of the Company are:

(a) timber logging;

(b) manufacturing and processing of sawn timber;

(c) cultivation of oil palm, timber and rubber and the processing and marketing of such produce and their related products;

(d) investment holding; and

(e) manufacturing and sale of doors.

The principal activities of the subsidiaries are:

(a) manufacturing and trading of wood products;

(b) property development and logging operations;

(c) trading of laminated timber scantling;

(d) trading of furniture and wood products; and

(e) manufacturing of furniture

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

RESULTSGroup Company

RM’000 RM’000

Net profit/(loss) for the year 931 (3,350)

There were no material transfers to or from reserves or provisions during the financial year.

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year werenot substantially affected by any item, transaction or event of a material and unusual nature.

Directors’ Report

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DIVIDENDSThe amount of dividends paid by the Company since 31 December 2001 were as follows:

RM’000

In respect of the financial year ended 31 December 2001 as reported in the directors’ report of that year:Final dividend of 5% tax exempt and 5% less taxation, paid on 29 June 2002 8,256

On 3 January 2003, the Board approved an interim dividend in respect of the financial year ended 31 December 2002, of 5%tax exempt on 96,000,000 ordinary shares, amounting to a total dividend of RM4,800,000 (5 sen per share) payable on 25 February 2003. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend,will be accounted for in shareholders’ equity as an appropriation of retained profits in the next financial year ending 31 December 2003.

DIRECTORSThe names of the directors of the Company in office since the date of the last report and at the date of this report are:

Tan Sri Dato’ Muhammad Ali Hashim (Chairman; Appointed on 1 August 2002)Rozan bin Mohd Sa’at (Appointed on 23 May 2002; Managing Director effective from 1 September 2002)Tan Sri Datuk (Dr) Arshad AyubKua Hwee Sim (Appointed on 1 August 2002)Hj Esa bin Mamek (Appointed on 1 January 2003)Halmi bin Jasmin (Appointed on 20 February 2003)Hj Abd. Razak bin Selamat (Managing Director; Resigned on 1 May 2002)Hj Abd Jalal bin Basimi (Resigned on 1 May 2002)Dato’ Johari bin Mohamed (Chairman; Resigned on 1 August 2002)Hasnah bte Ali (Resigned on 16 August 2002)Mohammad bin Alwi (Resigned on 20 February 2003)

DIRECTORS’ BENEFITSNeither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which theCompany was a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of theCompany or any other body corporate.

DIRECTORS’ REPORTSince the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefitsincluded in the aggregate amount of emoluments received or due and receivable by the directors as shown in Note 5 to thefinancial statements or the fixed salary of a full-time employee of the Company) by reason of a contract made by the Companyor a related corporation with any director or with a firm of which he is a member, or with a company in which he has asubstantial financial interest.

Directors’ Report

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DIRECTORS’ INTERESTSAccording to the register of directors' shareholdings, the interests of directors in office at the end of the financial year in sharesin the Company and its related corporations during the financial year were as follows:

<--- Number of Ordinary Shares of RM1 Each --->1 January 31 December

2002 Bought Sold 2002

The CompanyDirect interestTan Sri Dato’ Muhammad Ali Hashim 10,000 10,000 — 20,000Tan Sri Datuk (Dr) Arshad Ayub 215,000 10,000 — 225,000

Indirect interestTan Sri Datuk (Dr) Arshad Ayub 617,000 60,000 — 677,000

SubsidiariesKPJ Healthcare BerhadDirect interestTan Sri Dato’ Muhammad Ali Hashim 14,000 34,000 — 48,000Tan Sri Datuk (Dr) Arshad Ayub 145,000 252,000 11,000 386,000

Indirect interestTan Sri Dato’ Muhammad Ali Hashim 1,000 11,000 — 12,000Tan Sri Datuk (Dr) Arshad Ayub 273,000 460,000 — 733,000

Kulim (Malaysia) BerhadDirect interestTan Sri Dato’ Muhammad Ali Hashim 169,000 5,000 174,000Tan Sri Datuk (Dr) Arshad Ayub 685,000 10,000 — 695,000

Indirect interestTan Sri Dato’ Muhammad Ali Hashim 12,000 — — 12,000Tan Sri Datuk (Dr) Arshad Ayub 1,100,800 — — 1,100,800

Damansara Realty BerhadIndirect interestTan Sri Datuk (Dr) Arshad Ayub 1,000,000 — — 1,000,000

Johor Land BerhadDirect interestTan Sri Datuk (Dr) Arshad Ayub 49,000 — — 49,000Kua Hwee Sim 9,000 — — 9,000

Indirect interestTan Sri Datuk (Dr) Arshad Ayub 273,000 — — 273,000

None of the other directors in office at the end of the financial year had any interest in shares in the Company or its relatedcorporations during the financial year.

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OTHER STATUTORY INFORMATION(a) Before the income statements 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 provisionfor doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provisionhad been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in theordinary course of business had 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 not otherwise dealt with in this report orfinancial statements of the Group and of the Company which would render:

(i) the amount written off for bad debts or the amount of the provision for doubtful debts inadequate to any substantialextent; and

(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would renderadherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading orinappropriate.

(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report orfinancial statements of the Group and of the Company which would render any amount stated in the financial statementsmisleading.

(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 whichsecures the liabilities of any other person; or

(ii) any contingent liability 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 twelvemonths after the end of the financial year which will or may affect the ability of the Group or of the Company tomeet its obligations as and when they fall due; and

(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of thefinancial year and the date of this report which is likely to affect substantially the results of the operations of theGroup and of the Company for the financial year in which this report is made.

Directors’ Report

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SIGNIFICANT EVENTOn 27 December 2002, the Company announced that it had entered into a conditional sale and purchase agreement as follows:

(a) to acquire 200,000 ordinary shares of RM1.00 each representing 40% equity interest in Willis (Malaysia) Sdn. Bhd. fromits ultimate holding corporation, Johor Corporation (“JCorp”), for a total purchase consideration of RM4,500,000. TheCompany had obtained approval from Bank Negara Malaysia to commence negotiations with JCorp.

(b) to acquire 243,000 ordinary shares of RM1.00 each representing 75% equity interest in Pro-Office Bulk Mailing Sdn. Bhd.from Pro-Office Services Sdn. Bhd., a wholly owned subsidiary of Johor Franchise Development Sdn. Bhd. which is wholly-owned by JCorp, for a total purchase consideration of RM5,589,000.

(c) to acquire 1,500,000 ordinary shares of RM1.00 each representing 75% equity interest in JMF Asset Management Sdn.Bhd. (formerly known as Dexia JMF Asset Management Sdn. Bhd.) from JCorp, Koperasi Pegawai-Pegawai Melayu Berhad,Mohamed Azahari bin Mohamed Kamil and Tai Siong Choi for a total purchase consideration of RM4,500,000.

(d) to acquire 600,000 ordinary shares of RM1.00 each representing 75% equity interest in Tepak Marketing Sdn. Bhd. fromEPA Mangement Sdn. Bhd., a wholly owned subsidiary of JCorp, for a total purchase consideration of RM3,000,000.

The proposed acquisitions are still pending approvals of the relevant authorities.

SUBSEQUENT EVENTSubsequent to the financial year end, the Company repurchased its issued ordinary shares from the open market. The sharesrepurchased are being held as treasury shares in accordance with the requirement of Section 67A of the Companies Act, 1965.The details of the repurchase is as follows:

Number of shares Consideration paidDate of repurchase repurchased Market price per share including transaction cost

RM RM

8 January 2003 7,000 1.30 9,13913 January 2003 135,000 1.35 182,8703 March 2003 20,000 1.27 25,5065 March 2003 5,000 1.25 6,276

AUDITORSThe auditors, Ernst & Young, have expressed their willingness to continue in office.

Signed on behalf of the Board in accordance with a resolution of the directors

TAN SRI DATO’ MUHAMMAD ALI HASHIM ROZAN BIN MOHD SA’ATDirector Director

Johor Bahru, MalaysiaDated: 5 March 2003

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We, TAN SRI DATO’ MUHAMMAD ALI HASHIM and ROZAN BIN MOHD SA’AT being two of the directors of SINDORABERHAD, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 72 to100 are drawn up in accordance with applicable Approved Accounting Standards in Malaysia and the provisions of theCompanies Act, 1965 so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2002 and of the results and the cash flows of the Group and of the Company for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors

TAN SRI DATO’ MUHAMMAD ALI HASHIM ROZAN BIN MOHD SA'ATDirector Director


I, ROSNAH BINTI BASOK, being the officer primarily responsible for the financial management of SINDORA BERHAD, dosolemnly and sincerely declare that the accompanying financial statements set out on pages 72 to 100 are in my opinion, correctand I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the StatutoryDeclarations Act, 1960.

Subscribed and solemnly declared by the )abovenamed ROSNAH BINTI BASOK at )Johor Bahru in the State of )Johor Darul Ta’zim on 5 March 2003 ) ROSNAH BINTI BASOK

Before me,

Statement by Directors pursuant to Section 169(15) of the Companies Act, 1965

Statutory Declaration pursuant to Section 169(16) of the Companies Act, 1965

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We have audited the accompanying financial statements set out on pages 72 to 100. These financial statements are theresponsibility of the Company’s directors. Our responsibility is to express an opinion on these financial statements based on ouraudit.

We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards requirethat we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimates made by the directors, aswell as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis forour opinion.

In our opinion:

(a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 andapplicable Approved Accounting Standards in Malaysia so as to give a true and fair view of:

(i) the financial position of the Group and of the Company as at 31 December 2002 and of the results and the cashflows of the Group and of the Company for the year then ended; and

(ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and

(b) the accounting and other records and the registers required by the Act to be kept by the Company and by its subsidiariesof which we have acted as auditors have been properly kept in accordance with the provisions of the Act.

We have considered the financial statements and the auditors' reports thereon of the subsidiaries as indicated in Note 11 tothe financial statements, being financial statements that have been included in the consolidated financial statements.

We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements ofthe Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financialstatements and we have received satisfactory information and explanations required by us for those purposes.

The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification material to theconsolidated financial statements and did not include any comment required to be made under Section 174(3) of the Act.

ERNST & YOUNG WUN MOW SANGAF: 0039 1821/12/04 (J)Chartered Accountants Partner


Report of The Auditors to the Members of Sindora Berhad

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Group Company

Note 2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Revenue 3 56,588 45,940 51,262 40,963Cost of sales (42,478) (36,392) (36,498) (28,886)

Gross profit 14,110 9,548 14,764 12,077Other operating income 2,062 1,761 1,800 628Administrative expenses (13,544) (16,971) (17,915) (15,389)Distribution expenses (269) (223) (581) (78)

Profit/(loss) before taxation 4 2,359 (5,885) (1,932) (2,762)Taxation 6 (1,428) (91) (1,418) (72)

Profit/(loss) after taxation 931 (5,976) (3,350) (2,834)

Earnings/(loss) per share (sen) 7 1 (6)

Net dividend per share (sen)Proposed:5 sen tax exempt 8 — 5.0 — 5.05 sen gross less 28% taxation 8 — 3.6 — 3.6

— 8.6 — 8.6

The accompanying notes form an integral part of the financial statements

Income Statements for the year ended 31 December 2002

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Group Company

Note 2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

NON CURRENT ASSETSProperty, plant and equipment 9 129,699 134,847 127,060 131,450Estate development expenditure 10 29,995 29,344 29,995 29,344Investment in subsidiaries 11 — — 19,191 24,162Other investments 12 840 1,457 840 1,457

160,139 165,648 176,691 186,413

CURRENT ASSETSInventories 13 6,641 6,789 3,622 3,192Receivables 14 2,258 1,578 1,754 1,182Due from related companies 15 17,030 13,949 16,733 13,723Due from holding corporation 15 15 — 15 —Tax recoverable 572 3,390 572 3,279Cash and bank balances 16 18,616 22,449 11,051 15,650

45,132 48,155 33,747 37,026

CURRENT LIABILITIESPayables 17 3,960 4,171 3,357 3,756Due to holding corporation 15 — 62 — 61Due to related companies 15 1,129 1,530 1,129 1,531Dividend payable — 8,256 — 8,256

5,089 14,019 4,486 13,604

NET CURRENT ASSETS 40,043 34,136 29,261 23,422

200,577 199,784 206,347 209,835

FINANCED BY:Share capital 18 96,000 96,000 96,000 96,000Reserves 103,824 102,893 109,594 112,944

Shareholders’ equity 199,824 198,893 205,594 208,944Deferred taxation 19 753 891 753 891

200,577 199,784 206,347 209,835


Balance Sheets as at 31 December 2002

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<-- Non-distributable --> DistributableShare Share Revaluation Retained

Capital Premium Reserve Earnings(Note 20) (Note 20) (Note 21) Total

Group RM’000 RM’000 RM’000 RM’000 RM’000

At 1 January 2001 96,000 11,107 45,646 60,372 213,125Net profit for the year — — — (5,976) (5,976)Disposal during the year — — (145) 145 —Dividends (Note 8) — — — (8,256) (8,256)

At 31 December 2001 96,000 11,107 45,501 46,285 198,893

At 1 January 2002 96,000 11,107 45,501 46,285 198,893Net profit for the year — — — 931 931

At 31 December 2002 96,000 11,107 45,501 47,216 199,824

CompanyAt 1 January 2001 96,000 11,107 46,743 66,184 220,034Net loss for the year — — — (2,834) (2,834)Dividends (Note 8) — — — (8,256) (8,256)

At 31 January 2001 96,000 11,107 46,743 55,094 208,944

At 1 January 2002 96,000 11,107 46,743 55,094 208,944Net profit for the year — — — (3,350) (3,350)

At 31 December 2002 96,000 11,107 46,743 51,744 205,594


Statements of Changes in Equity for the year ended 31 December 2002

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Group Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM OPERATING ACTIVITIESProfit/(loss) before taxation 2,359 (5,885) (1,932) (2,762)Adjustment for:Depreciation 5,754 5,674 5,011 4,975(Gain)/Loss on disposal of property, plant and equipment (235) (815) (225) 50Property, plant and equipment written off 91 — 80 —Inventories written off 211 41 5 —Loss on disposal of investments 118 757 118 757Unrealised foreign exchange gain (4) — — —Provision for diminution in value of investment 651 2,252 651 2,252Provision for diminution in value of investment written back (186) — (186) —Provision for diminution in value of subsidiaries — — 6,331 —Provision for doubtful debts — 893 — 1Interest income (1,173) (1,319) (1,012) (1,130)

Operating profit before working capital changes 7,586 1,598 8,841 4,143(Increase)/Decrease in inventories (63) 2,551 (435) 260Increase in receivables (676) (269) (1,932) (846)(Increase)/Decrease in amount due from related companies (3,081) 1,168 (3,010) 1,162Decrease in payables (207) (363) (399) (149)(Decrease)/Increase in amount due to holding company (77) 2 (76) 13Decrease in amount due to related companies (401) (1,169) (402) (1,170)

Cash generated from operations 3,081 3,518 2,587 3,413Tax paid (12) (2,513) (47) (2,508)Tax refund 1,264 5 1,198 —

Net cash generated from operating activities 4,333 1,010 3,738 905

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment (875) (2,700) (875) (2,033)Property, plant and equipment transferred to subsidiary companies — 654 — 654Proceeds from disposal of property, plant and equipment 306 1,179 296 52Proceeds from disposal of investments 1,066 566 1,066 566Purchase of investments (1,032) (441) (1,032) (441)Estate development expenditure (548) (689) (548) (689)Interest income 1,173 1,319 1,012 1,130

Net cash generated from/(used in) investing activities 90 (112) (81) (761)

Cash Flow Statements for the year ended 31 December 2002

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Group Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

CASH FLOWS FROM FINANCING ACTIVITYDividends paid (8,256) (4,800) (8,256) (4,800)

Net cash used in financing activity (8,256) (4,800) (8,256) (4,800)

NET DECREASE IN CASH AND CASH EQUIVALENTS (3,833) (3,902) (4,599) (4,656)CASH AND CASH EQUIVALENTS AT BEGINNING OF

FINANCIAL YEAR 22,402 26,304 15,603 20,259

CASH AND CASH EQUIVALENTS AT END OFFINANCIAL YEAR (Note 16) 18,569 22,402 11,004 15,603


Cash Flow Statements for the year ended 31 December 2002

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1. CORPORATE INFORMATIONThe principal activities of the Company are:

(a) timber logging;

(b) manufacturing and processing of sawn timber;

(c) cultivation of oil palm, timber and rubber and the processing and marketing of such produce and their relatedproducts;

(d) investment holding; and

(e) manufacturing and sale of doors.

The principal activities of the subsidiaries are:

(a) manufacturing and trading of wood products;

(b) property development and logging operations;

(c) trading of laminated timber scantling;

(d) trading of furniture and wood products; and

(e) manufacturing of furniture

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

The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Boardof the Kuala Lumpur Stock Exchange. The principal place of business of the Company is located at Lot 1384, 45th KM,Kluang-Kota Tinggi Highway, Bandar Tenggara, 81100 Kulai, Johor Darul Ta’zim. The registered office of the Company islocated at 13th Floor, Menara Johor Corporation, KOTARAYA, 80000, Johor Bahru, Johor Darul Ta’zim.

The holding corporation of the Company is Johor Corporation, a body corporate established under the Johor CorporationEnactment (No. 4 of 1968) (as amended by Enactment No. 5 of 1995).

The numbers of employees in the Group and in the Company at the end of the financial year were 859 (2001: 890) and744 (2001: 753) respectively.

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directorson 5 March 2003.

2. SIGNIFICANT ACCOUNTING POLICIES(a) Basis of Preparation

The financial statements of the Group and of the Company have been prepared under the historical cost conventionunless otherwise indicated in the accounting policies below.

The financial statements comply with the provisions of the Companies Act 1965 and applicable Approved AccountingStandards in Malaysia.

Notes to the Financial Statements 31 December 2002

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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d.)(b) Basis of Consolidation

The consolidated financial statements include the financial statements of the Company and all its subsidiaries.Subsidiaries are those companies in which the Group has a long term equity interest and where it has power toexercise control over the financial and operating policies so as to obtain benefits therefrom.

Subsidiaries are consolidated using the acquisition method of accounting. Under the acquisition method of accounting,the results of subsidiaries acquired or disposed of during the year are included in the consolidated income statementfrom the effective date of acquisition or up to the effective date of disposal, as appropriate. The assets and liabilitiesof a subsidiary are measured at their fair values at the date of acquisition and these values are reflected in theconsolidated balance sheet. The difference between the cost of an acquisition and the fair value of the Group’s shareof the net assets of the acquired subsidiary at the date of acquisition is included in the consolidated balance sheet asgoodwill or negative goodwill arising on consolidation.

Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the consolidatedfinancial statements reflect external transactions only. Unrealised losses are eliminated on consolidation unless costscannot be recovered.

The gain or loss on disposal of a subsidiary company is the difference between net disposal proceeds and the Group’sshare of its net assets together with any unamortised balance of goodwill and exchange differences which were notpreviously recognised in the consolidated income statement.

Minority interest is measured at the minorities’ share of the post acquisition fair values of the identifiable assets andliabilities of the acquiree.

(c) Investments in SubsidiariesThe Company’s investments in subsidiaries is stated at valuation less impairment losses. The policy for the recognitionand measurement of impairment losses is in accordance with Note 2(k).

On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is chargedor credited to the income statement.

(d) Property, Plant and Equipment and DepreciationProperty, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The policy forthe recognition and measurement of impairment losses is in accordance with Note 2(k).

Freehold land is stated at valuation less any identified impairment losses. The land and buildings of the Group and ofthe Company have not been revalued since they were first revalued in 1995. The directors have not adopted a policyof regular revaluations of such assets. As permitted under the transitional provisions of International AccountingStandards 16 (Revised) : Property, Plant and Equipment, these assets continue to be stated at their 1995 valuation lessaccumulated depreciation or valuation. Any revaluation increase is credited to equity as a revaluation surplus, exceptto the extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in whichcase the increase is credited to the income statement to the extent of the decrease previously charged. A revaluationdecrease is first offset against an increase on earlier valuation in respect of the same asset and is thereafter recognisedas an expense. Upon the disposal of revalued assets, the attributable revaluation surplus remaining in the revaluationreserve is transferred to retained profits.


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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d.)(d) Property, Plant and Equipment and Depreciation (cont’d.)

Leasehold land is depreciated over the period of the respective leases which range from 46 years to 92 years exceptfor a piece of leasehold land of a subsidiary company intended for property development, which the commencementdate is not known. However, the effect on the financial statements is not material. Depreciation of other property,plant and equipment is provided for on a straight line basis to write off the cost of each asset to its residual valueover the estimated useful life at the following annual rates

Short term leasehold land 46 yearsLong term leasehold land 83 to 92 yearsBuildings and structures 5 – 50 yearsPlant and machinery 5 – 20 yearsMotor vehicles 3 – 10 yearsFurniture, fittings and equipment 3.3 – 12.5 yearsElectrical installation 3.18 – 12.5 years

Upon the disposal of an item of property, plant or equipment, the difference between the net disposal proceeds andthe carrying amount is charged or credited to the income statement and the attributable portion of the revaluationsurplus is taken directly to retained profits.

Subsequent restroration costs, relating to an item of property, plant and equipment that has been recognised arecapitalised only if such costs improve the condition of the property, plant and equipment beyond its originally assessedstandard of performance. All other subsequent expenditure are recognised as an expense in the year in which it isincurred.

(e) Estate Development ExpenditureAll expenditure incurred in the clearing of land for planting up to maturity are capitalised as estate developmentexpenditure and are not amortised. Any cost incurred after maturity in replanting or maintenance is charged to theincome statement in the year of incurrence.

(f) InventoriesInventories are stated at the lower of cost (determined on the weighted average basis) and net realisable value. Costof finished goods and work-in-progress includes direct materials, direct labour, other direct costs and appropriateproduction overheads. Net realisable value represents the estimated selling price less all estimated costs to completionand costs to be incurred in marketing, selling and distribution.

Properties held for resale are stated at the lower of cost and net realisable value. Cost is determined on the speficicidentification basis and includes costs of land, construction and appropriate production overheads.

(g) Cash and Cash EquivalentsFor the purposes of the cash flow statements, cash and cash equivalents include cash in hand and at bank, depositsat call and short term highly liquid investments which have an insignificant risk of changes in value, net of outstandingbank overdrafts.

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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d.)(h) Deferred Taxation

The tax expense for the year is based on the profit for the year, as adjusted for tax purposes, together with a chargeor credit for deferred taxation.

Deferred taxation is provided for by the liability method for all timing differences except when there is reasonableevidence that these timing differences will not reverse in the foreseeable future. Deferred tax benefits are onlyrecognised when there is a reasonable expectation of realisation in the near future.

(i) Revenue RecognitionRevenue is recognised when it is probable that the economic benefits associated with the transaction will flow to theenterprise and the amount of the revenue can be measured reliably.(i) Sale of goods

Revenue relating to sale of goods is recognised net of sales taxes and discounts upon the transfer of risks andrewards.

(ii) Development propertiesRevenue from sale of development properties is accounted for by the percentage of completion method. Thepercentage of completion is determined by reference to the costs incurred to date to the total estimated costswhere the outcome of the projects can be reliably estimated.

(iii) Interest incomeInterest is recognised on a time proportion basis that reflects the effective yield on the asset.

(iv) Dividend incomeDividend income is recognised when the right to receive payment is established.

(j) Foreign Currencies TransactionsTransactions in foreign currencies are initially converted into Ringgit Malaysia at rates of exchange ruling at thetransaction dates. At each balance sheet date, foreign currency monetary items are translated into Ringgit Malaysia atexchange rates ruling at that date. Non-monetary items which are carried at historical cost are translated using thehistorical rate as of the date of acquisition and non-monetary items which are carried at fair value are translated usingthe exchange rate that existed when the values were determined.

All exchange rate differences are taken to the income statement.

(k) Impairment of AssetsAt each balance sheet date, the Group reviews the carrying amounts of its assets, other than inventories, assets arisingfrom development expenditures, deferred tax assets and financial assets, to determine whether there is any indicationthat those assets have suffered an impairment loss. If any such indication exists, impairment is measured by comparingthe carrying values of the assets with their recoverable amounts. Recoverable amount is the higher of net selling priceand value in use, which is measured by reference to discounted future cash flows. Recoverable amounts are estimatedfor individual assets or, if it is not possible, for the cash-generating unit to which the asset belongs.

An impairment loss is charged to the income statement immediately, unless the asset is carried at revalued amount.Any impairment loss of a revalued asset is treated as a revaluation decrease to the extent of any available previouslyrecognised revaluation surplus for the same asset.


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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d.)(k) Impairment of Assets (cont’d.)

Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairmentlosses recognised for the asset no longer exist or have decreased. The reversal is recognised to the extent of thecarrying amount of the asset that would have been determined (net of amortisation and depreciation) had noimpairment loss been recognised. The reversal is recognised in the income statement immediately, unless the asset iscarried at revalued amount. A reversal of an impairment loss on a revalued asset is credited directly to revaluationsurplus. However, to the extent that an impairment loss on the same revalued asset was previously recognised as anexpense in the income statement, a reversal of that impairment loss is recognised as income in the income statement."

(l) Financial InstrumentsFinancial instruments are recognised in the balance sheet when the Group has become a party to the contractualprovisions of the instrument.

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractualarrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reportedas expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity.Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle eitheron a net basis or to realise the asset and settle the liability simultaneously.

(i) Other Non-Current InvestmentsNon-current investments other than investments in subsidiaries and investment properties are stated at cost lessprovision for any permanent diminution in value. Such provision is made when there is a decline other thantemporary in the value of investments and is recognised as an expense in the period in which the declineoccurred.

On disposal of an investment, the difference between net disposal proceeds and its carrying amount is chargedor credited to the income statement.

(ii) Marketable SecuritiesMarketable securities are carried at the lower of cost and market value, determined on an aggregate basis. Costis determined on the weighted average basis while market value is determined based on quoted market values.Increases or decreases in the carrying amount of marketable securities are credited or charged to the incomestatement. On disposal of marketable securities, the difference between net disposal proceeds and the carryingamount is charged or credited to the income statement.

(iii) Trade ReceivablesTrade receivables are carried at anticipated realisable values. Bad debts are written off when identified. Anestimate is made for doubtful debts based on a review of all outstanding amounts as at the balance sheet date.

(iv) Trade PayablesTrade payables are stated at cost which is the fair value of the consideration to be paid in the future for goodsand services received.

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2. SIGNIFICANT ACCOUNTING POLICIES (cont’d.)(l) Financial Instruments (cont’d.)

(v) Equity InstrumentsOrdinary shares are classified as equity.

The transaction costs of an equity transaction other than in the context of a business combination are accountedfor as a deduction from equity, net of tax. Equity transaction costs comprise only those incremental external costsdirectly attributable to the equity transaction which would otherwise have been avoided. Costs of issuing equitysecurities in connection with a business combination are included in the cost of acquisition.

Dividends on ordinary shares are recognised in equity in the period in which the obligations to pay is established.

When the share capital of the Company is repurchased, the consideration paid, including any attributabletransaction costs is presented as a change in equity. Repurchased shares are classified as treasury shares andpresented as a deduction from equity. No gain or loss is recognised in the income statement on the sale, re-issuance or cancellation of treasury shares. Consideration received is presented in the financial statements as achange in equity.

3. REVENUERevenue of the Group and of the Company consists of the following

Group Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Sale of:Logs, sawn timber, treated timber and door 10,744 9,083 5,418 4,106Rubber 734 552 734 552Crude Palm Oil and Palm Kernel 45,110 36,305 45,110 36,305

56,588 45,940 51,262 40,963


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4. PROFIT/(LOSS) BEFORE TAXATIONGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Profit/(loss) before taxation is stated after charging/(crediting):Auditors’ remuneration:– current year 98 97 68 68– overprovision in prior year (1) — — —Bad debts written off — 408 — 408Corporate fees 86 88 71 88Depreciation (Note 9) 5,754 5,674 5,011 4,975Directors’ fees (Note 5) 36 24 36 24Directors’ salaries and allowances 68 246 68 246Forest premium 586 692 586 692Forest royalty 634 515 634 515Loss on disposal of investments 118 757 118 757Provision for diminution in value of investments 651 2,252 651 2,252Provision for doubtful debts — 893 — 1Property, plant and equipment written off 91 — 80 —Rental of building 13 5 13 5Staff costs* 7,387 8,701 5,971 7,156Inventories written off 211 41 5 —Corporate fees receivable — — (60) —(Gain)/Loss on disposal of property, plant and equipment (235) (815) (225) 50Gain on foreign exchange – realised (3) (6) — —Gain on foreign exchange – unrealised (4) — — —Gross dividend from quoted shares in Malaysia — (6) — (6)Management fee — — (6) (6)Interest receivable (1,173) (1,319) (1,012) (1,130)Provision for diminution in value of investment written back (186) — (186) —Rental received (136) (128) (204) (197)

* Included in staff costs of the Group and of the Company is executive directors’ remuneration amounting to RM73,532(2001: RM245,913).

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5. DIRECTORS’ REMUNERATIONGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Directors of the CompanyExecutive:

Salaries and other emoluments 67 246 67 246Fees 6 — 6 —Bonus 1 — 1 —Benefits-in-kind 5 21 5 21

79 267 79 267

Non-executive:Fees 30 24 30 24

Total 109 291 109 291

Analysis excluding benefits-in-kind:Total executive directors’ remuneration excluding

benefits-in-kind 74 246 74 246Total non-executive directors remuneration excluding

benefits-in-kind 30 24 30 24

Total remuneration excluding benefits-in-kind 104 270 104 270

The number of directors of the Company whose total remuneration during the year fell within the following bands isanalysed below:

Number of Directors

2002 2001

RM50,001 – RM100,000 1 —RM250,001 – RM300,000 — 1

Non-Executive directors:Below RM50,000 3 2


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6. TAXATIONGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Tax expense for the year:Current year 1,566 411 1,556 395Transfer from deferred taxation (Note 19) (138) (162) (138) (162)

1,428 249 1,418 233Tax expense of prior years:Current year — 3 — —Transfer from deferred taxation (Note 19) — (161) — (161)

1,428 91 1,418 72

The effective tax rate of the Group is higher than the statutory tax rate principally due to losses of certain subsidiarieswhich cannot be set off against taxable profits made by the Company as no group relief is available.

The effective tax rate of the Company is higher than the statutory tax rate principally due to certain expenses which arenot allowed as a deduction for taxation purposes.

As at 31 December 2002, the Company has unabsorbed capital allowances carried forward of approximately RM4,383,000(2001: RM4,096,0000) which can be used to offset against the future taxable profits, subject to the agreement with theInland Revenue Board.

7. EARNINGS/(LOSS) PER SHAREBasic earnings/(loss) per share is calculated by dividing the net profit/(loss) for the year by the number of ordinary sharesin issue during the financial year.

Group

2002 2001

Net profit/(loss) for the year (RM’000) 931 (5,976)Number of shares in issue (‘000) 96,000 96,000

Basic earnings/(loss) per share (sen) 1 (6)

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8. DIVIDENDSAmount Net Dividends per Share

2002 2001 2002 2001RM’000 RM’000 Sen Sen

Proposed final dividend:5% tax exempt and 5% less taxation — 8,256 — 8.6

— 8,256 — 8.6

On 8 January 2003, the Board approved an interim dividend in respect of the financial year ended 31 December 2002, of5% tax exempt on 96,000,000 ordinary shares, amounting to a total dividend of RM4,800,000 (5 sen per share) payableon 25 February 2003. The financial statements for the current financial year do not reflect this proposed dividend. Suchdividend will be accounted for in shareholders’ equity as an appropriation of retained profits in the next financial yearending 31 December 2003.

9. PROPERTY, PLANT AND EQUIPMENTOther

Group property,Land and Plant and plant and

buildings* machinery equipment TotalRM’000 RM’000 RM’000 RM’000

CostAt 1 January 133,805 30,432 12,404 176,641Additions 46 78 751 875Adjustment — (4) — (4)Disposals — — (1,048) (1,048)Written off (332) (265) (137) (734)

At 31 December 133,519 30,241 11,970 175,730

Representing:At cost 45,098 30,241 11,970 87,309At valuation 88,421 — — 88,421

133,519 30,241 11,970 175,730


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9. PROPERTY, PLANT AND EQUIPMENTOther

property,Land and Plant and plant and

buildings* machinery equipment TotalRM’000 RM’000 RM’000 RM’000

Accumulated DepreciationAt 1 January 16,778 14,529 10,487 41,794Depreciation charge for the year: 2,906 2,232 719 5,857

Charged to income statement (Note 4) 2,857 2,214 683 5,754Capitalised in development expenditure (Note 10) 49 18 36 103

Disposals — — (977) (977)Written off (256) (253) (134) (643)

At 31 December 19,428 16,508 10,095 46,031

Net Book ValueAt 31 December 2002At cost 38,653 13,733 1,875 54,261At valuation 75,438 — — 75,438

114,091 13,733 1,875 129,699

At 31 December 2001At cost 39,911 15,903 1,917 57,731At valuation 77,116 — — 77,116

117,027 15,903 1,917 134,847

Depreciation charge for 2001:Charged to income statement (Note 4) 2,847 2,058 769 5,674Capitalised in development expenditure (Note 10) 92 25 49 166

2,939 2,083 818 5,840

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9. PROPERTY, PLANT AND EQUIPMENT (cont’d.)* Land and Buildings Long term Short term

Freehold leasehold leaseholdland and land and land andbuildings buildings buildings Total

RM’000 RM’000 RM’000 RM’000

CostAt 1 January 1,975 96,418 35,412 133,805Additions — — 46 46Written off — — (332) (332)

At 31 December 1,975 96,418 35,126 133,519

Representing:At cost — 29,554 15,544 45,098At valuation 1,975 66,864 19,582 88,421

1,975 96,418 35,126 133,519

Accumulated DepreciationAt 1 January 92 7,049 9,637 16,778Depreciation charge for the year: 14 1,126 1,766 2,906

Charged to income statement 14 1,113 1,730 2,857Capitalised in development expenditure — 13 36 49

Written off — — (256) (256)

At 31 December 106 8,175 11,147 19,428

Net Book ValueAt 31 December 2002At cost — 26,509 12,144 38,653At valuation 1,869 61,734 11,835 75,438

1,869 88,243 23,979 114,091

At 31 December 2001At cost — 26,859 13,052 39,911At valuation 1,883 62,510 12,723 77,116

1,883 89,369 25,775 117,027

Depreciation charge for 2001:Charged to income statement 14 1,036 1,797 2,847Capitalised in development expenditure — 38 54 92

14 1,074 1,851 2,939


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9. PROPERTY, PLANT AND EQUIPMENT (cont’d.)Other

Company property,*Land and Plant and plant and

buildings machinery equipment TotalRM’000 RM’000 RM’000 RM’000

CostAt 1 January 132,364 22,344 11,402 166,110Additions 46 78 751 875Disposals — — (968) (968)Written off (332) (23) (125) (480)

At 31 December 132,078 22,399 11,060 165,537

Representing:At cost 44,364 22,399 11,060 77,823At valuation 87,714 — — 87,714

132,078 22,399 11,060 165,537

Accumulated DepreciationAt 1 January 16,106 9,034 9,520 34,660Depreciation charge for the year: 2,800 1,611 703 5,114

Charged to income statement (Note 4) 2,751 1,593 667 5,011Capitalised in development expenditure (Note 10) 49 18 36 103

Disposals — — (897) (897)Written off (256) (22) (122) (400)

At 31 December 18,650 10,623 9,204 38,477

Net Book ValueAt 31 December 2002At cost 38,341 11,776 1,856 51,973At valuation 75,087 — — 75,087

113,428 11,776 1,856 127,060

At 31 December 2001At cost 39,543 13,310 1,882 54,735At valuation 76,715 — — 76,715

116,258 13,310 1,882 131,450

Depreciation charge for 2001Charged to income statement (Note 4) 2,743 1,486 746 4,975Capitalised in development expenditure (Note 10) 92 25 49 166

2,835 1,511 795 5,141

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9. PROPERTY, PLANT AND EQUIPMENT (cont’d.)* Land and Buildings Long term Short term

Freehold leasehold leaseholdland and land and land andbuildings buildings buildings Total

RM’000 RM’000 RM’000 RM’000

CostAt 1 January 2,000 96,174 34,190 132,364Additions — — 46 46Written off — — (332) (332)

At 31 December 2,000 96,174 33,904 132,078

Representing:At cost — 29,491 14,873 44,364At valuation 2,000 66,683 19,031 87,714

2,000 96,174 33,904 132,078

Accumulated DepreciationAt 1 January 91 7,047 8,968 16,106Depreciation charge for the year: 14 1,127 1,659 2,800

Charged to income statement 14 1,114 1,623 2,751Capitalised in development expenditure — 13 36 49

Written off — — (256) (256)

At 31 December 105 8,174 10,371 18,650

Net Book ValueAt 31 December 2002At cost — 26,447 11,894 38,341At valuation 1,895 61,553 11,639 75,087

1,895 88,000 23,533 113,428

At 31 December 2001At cost — 26,798 12,745 39,543At valuation 1,909 62,329 12,477 76,715

1,909 89,127 25,222 116,258

Depreciation charge for 2001:Charged to income statement 14 1,036 1,693 2,743Capitalised in development expenditure — 38 54 92

14 1,074 1,747 2,835


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9. PROPERTY, PLANT AND EQUIPMENT (cont’d.)(a) Details of independent professional valuations of freehold and leasehold land and buildings at 31 December 2002 are

as follows:

Date of ValuationValuation Description of property amount Basis of valuation

RM’000

1995 Land and buildings in Bandar Tenggara 88,613 Open market value

Had the revalued property, plant and equipment been carried at historical cost less accumulated depreciation andimpairment losses, the net book value of each class of property, plant and equipment that would have been includedin the financial statements of the Group and the Company as at 31 December 2002 would be as follows:

Group Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Freehold land and buildings 447 455 447 455Long term leasehold land and buildings 2,583 2,616 2,557 2,590Short term leasehold land and buildings 8,691 9,280 8,675 9,253

11,721 12,351 11,679 12,298

(b) The carrying amount of temporarily idle equipment of the Group amounted to RM345,104 (2001: RM422,561)

(c) Included in property, plant and equipment of the Group and of the Company are fully depreciated assets which arestill in use costing RM14,878,230 (2001: RM16,153,140) and RM12,902,005 (2001: RM14,249,830) respectively.

10. ESTATE DEVELOPMENT EXPENDITUREGroup and Company

2002 2001RM’000 RM’000

Oil palm planting expenditure 25,489 24,949Rubber planting expenditure 4,111 4,035Timber planting expenditure 395 360

29,995 29,344

Included in estate development expenditure of the Group and of the Company are depreciation capitalised during thefinancial year amounting to RM102,850 (2001: RM165,857).

Cost of development expenditure of the Group and of the Company recognised as an expense during the financial yearamounted to RM3,729,164 (2001: RM4,895,954).

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11. INVESTMENT IN SUBSIDIARIESCompany

2002 2001RM’000 RM’000

Unquoted shares – at valuation 12,332 12,332Less: Accumulated impairment loss (6,331) —

6,001 12,332Amount due from subsidiary companies 13,190 11,830

19,191 24,162

Details of the wholly owned subsidiaries, all of which are incorporated in Malaysia, are as follows:

Name of Subsidiaries Principal activities

Sindora Wood Products Sdn. Bhd. Manufacturing and trading of wood products

Sindora Development Sdn. Bhd. Dormant

Sindora Timber Products Sdn. Bhd. Ceased operations

Sindora Trading Sdn. Bhd. Trading of furniture and wood products

Sindora Furniture Sdn. Bhd. Manufacturing of furniture

The amounts due from the subsidiaries arose mainly from normal trading transactions and advances. These amounts areunsecured, interest free and have no fixed terms of repayment.

12. OTHER INVESTMENTSGroup and Company

2002 2001RM’000 RM’000

In Malaysia:Quoted shares at cost 12,900 13,052Less: Accumulated impairment losses (12,060) (11,595)

840 1,457

Market value of quoted shares 840 1,568


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13. INVENTORIESGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

At cost:Finished goods 346 412 14 8Work-in-progress 257 971 37 25Raw materials 412 — 154 —Logs 425 784 426 784Sawn and treated timber 1,935 1,922 1,102 324General spare parts and fuel 444 232 126 232Chemicals and fertilisers 31 490 8 103Crude Palm Oil and Palm Kernel 1,755 1,716 1,755 1,716

5,605 6,527 3,622 3,192

At net realisable value:Raw materials 14 — — —Work-in-progress 775 — — —Finished goods 247 262 — —

1,036 262 — —

6,641 6,789 3,622 3,192

14. RECEIVABLESGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Trade receivables 2,095 1,995 779 672Sundry receivables, deposits and prepayments 1,780 1,200 1,633 1,168

3,875 3,195 2,412 1,840Less: Provision for doubtful debts (1,617) (1,617) (658) (658)

2,258 1,578 1,754 1,182

The Group’s normal trade credit term ranges from 30 to 90 days. Other credit terms are assessed and approved on a case-by-case basis.

The Group has no significant concentration of credit risk that may arise from expenses to a single debtor or to groups ofdebtors.

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15. DUE FROM/TO HOLDING CORPORATION AND RELATED COMPANIESThe amount due to holding corporation arose from normal trade debts and advances, is unsecured, interest free and hasno fixed terms of repayment.

The amounts due from related companies arose from normal trade debts and advances, are unsecured, bear interest atbankers’ base lending rate and have no fixed terms of repayment. The related companies are companies in the JohorCorporation Group.

16. CASH AND CASH EQUIVALENTSGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Cash in hand and at banks 4,039 2,102 3,004 1,603Deposits with licensed banks 14,577 20,347 8,047 14,047

Cash and bank balances 18,616 22,449 11,051 15,650Less: Deposits pledged with a licensed bank (47) (47) (47) (47)

Cash and cash equivalents 18,569 22,402 11,004 15,603

Deposits of the Group and of the Company amounting to RM47,000 (2001: RM47,000) are pledged as security for bankguarantee facilities.

17. PAYABLESGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Trade payables 2,041 1,619 1,833 1,430Sundry payables and accruals 1,919 2,552 1,524 2,326

3,960 4,171 3,357 3,756

The normal trade credit granted to the Group ranges from 30 to 90 days.


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18. SHARE CAPITALNumber of Ordinary AmountShares of RM1 each

2002 2001 2002 2001‘000 ‘000 RM’000 RM’000

Authorised 200,000 200,000 200,000 200,000

Issued and fully paid 96,000 96,000 96,000 96,000

19. DEFERRED TAXATIONGroup and Company

2002 2001RM’000 RM’000

At 1 January 891 1,214Transfer to income statement– current year release (Note 6) (138) (162)– prior year release (Note 6) — (161)

At 31 December 753 891

Deferred taxation is not provided for on the surplus arising from the revaluation of land and buildings as it is not theintention of the directors to dispose of these properties.

20. RESERVES – NON-DISTRIBUTABLEGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Revaluation reserve– land and buildings 45,501 45,501 46,743 46,743Share premium 11,107 11,107 11,107 11,107

56,608 56,608 57,850 57,850

21. RETAINED EARNINGSThe Company has sufficient tax credit under Section 108 of the Income Tax Act 1967 and the balance in the tax exemptincome account to frank the payment of dividends out of its entire retained profits as at 31 December 2002.

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22. SIGNIFICANT RELATED PARTY TRANSACTIONSGroup Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Sale of goods to subsidiaries– Sindora Trading Sdn. Bhd. — — 3,460 2,888– Sindora Wood Products Sdn. Bhd. — — 299 248– Sindora Furnitures Sdn. Bhd. — — 9 —

Sale of goods to EPA Management Sdn. Bhd.,a related company 45,110 36,305 45,110 36,305

Other charges received from subsidiaries– Sindora Trading Sdn. Bhd. — — 8 8– Sindora Wood Products Sdn. Bhd. — — 2 14

Rental received from subsidiaries– Sindora Trading Sdn. Bhd. — — 6 6– Sindora Wood Products Sdn. Bhd. — — 12 12– Sindora Furnitures Sdn. Bhd. — — 45 45– Sindora Development Sdn. Bhd. — — 6 6

Rental received from Johor Tropical Products Sdn. Bhd.,a related company 27 23 27 23

Corporate fees received from Sindora Trading Sdn. Bhd.,a subsidiary — — 60 —

Management fee received from Sindora Trading Sdn. Bhd.,a subsidiary — — 6 6

Interest received from Johor Corporation, ultimateholding corporation — 481 — 327

Interest received from related companies– Grand Patriot Sdn. Bhd. 68 65 68 65– Sindora Ventures Sdn. Bhd. 175 149 175 149– Makmuran Sdn. Bhd. 251 212 251 212– Sindora Nusantara Sdn. Bhd. 280 234 280 234– Sindora Holdings Sdn. Bhd. 1 1 1 1

Secretarial fees paid to Johor Corporation, ultimateholding corporation 29 25 15 13


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22. SIGNIFICANT RELATED PARTY TRANSACTIONS (cont’d.)Group Company

2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000

Rental paid to Harta Consult Sdn. Bhd., a related company 8 — 8 —

Advisory, agency and consultancy fees paid toEPA Management Sdn. Bhd., a related company 1,532 1,500 1,532 1,500

Other charges charged by Sindora Wood Products Sdn. Bhd.,a subsidiary — — 50 27

Purchases from Sindora Trading Sdn. Bhd., a subsidiary — — 329 —

Corporate fees paid to Johor Corporation ultimateholding corporation — 44 — 44

Purchase of property, plant and equipment from Johor LandBerhad, related company — 95 — 95

The directors are of the opinion that all the transactions above have been entered into in the normal course of businessand have been established on terms and conditions that are not materially different from those obtainable in transactionswith unrelated parties.

23. SIGNIFICANT EVENTOn 27 December 2002, the Company announced that it had entered into a conditional sale and purchase agreement asfollows:

(a) to acquire 200,000 ordinary shares of RM1.00 each representing 40% equity interest in Willis (Malaysia) Sdn. Bhd.from its ultimate holding corporation, Johor Corporation (“JCorp”) for a total purchase consideration of RM4,500,000.The Company had obtained approval from Bank Negara Malaysia to commence negotiations with JCorp.

(b) to acquire 243,000 ordinary shares of RM1.00 each representing 75% equity interest in Pro-Office Bulk Mailing Sdn.Bhd. from Pro-Office Services Sdn. Bhd., a wholly owned subsidiary of Johor Franchise Development Sdn. Bhd. whichis wholly-owned by JCorp, for a total purchase consideration of RM5,589,000.

(c) to acquire 1,500,000 ordinary shares of RM1.00 each representing 75% equity interest in JMF Asset Management Sdn.Bhd. (formerly known as Dexia JMF Asset Management Sdn. Bhd.) from JCorp, Koperasi Pegawai-Pegawai MelayuBerhad, Mohamed Azahari bin Mohamed Kamil and Tai Siong Choi for a total purchase consideration of RM4,500,000.

(d) to acquire 600,000 ordinary shares of RM1.00 each representing 75% equity interest in Tepak Marketing Sdn. Bhd.from EPA Management Sdn. Bhd., a wholly owned subsidiary of JCorp, for a total purchase consideration ofRM3,000,000.

The proposed acquisitions are still pending approvals of the relevant authorities.

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24. SUBSEQUENT EVENTSubsequent to the financial year end, the Company repurchased its issued ordinary shares from the open market. The sharesrepurchased are being held as treasury shares in accordance with the requirement of Section 67A of the Companies Act,1965. The details of the repurchase is as follows:

ConsiderationNumber of shares Market price paid including

Date of repurchase repurchased per share transaction costRM RM

8 January 2003 7,000 1.30 9,13913 January 2003 135,000 1.35 182,8703 March 2003 20,000 1.27 25,5065 March 2003 5,000 1.25 6,276

25. COMPARATIVE FIGURESThe presentation and classification of items in the current year financial statements have been consistent with the previousfinancial year except for the presentation and classification of items in the segment information (Note 27) of the previousfinancial year have been changed to comply with the requirements of MASB 22: Segment Reporting which was adoptedduring the year.

Comparative are not disclosed for certain information relating to financial instruments as permitted by MASB 24 – FinancialInstruments: Disclosure and Presentation upon first application.

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

26. FINANCIAL INSTRUMENTS(a) Financial Risk Management Objectives and Policies

The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for thedevelopment of the Group’s businesses whilst managing its interest rate, foreign exchange, liquidity and credit risks.The Group operates within clearly defined guidelines that are approved by the Board and the Group’s policy is to notengage in speculative transactions.

(b) Interest Rate RiskThe investment in financial assets are mainly short term in nature and they are not held for speculative purposes buthave been mostly placed in fixed deposits or occasionally, in short term commercial papers which yield better returnsthan cash at bank.

(c) Foreign Exchange RiskThe Group operates internationally and is exposed to various currencies, mainly United States Dollar and SingaporeDollar. Foreign currency denominated assets and liabilities together with expected cash flows from highly probablepurchases and sales give rise to foreign exchange exposures.


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26. FINANCIAL INSTRUMENTS (cont’d.)(d) Liquidity Risk

The Group actively manages its debt maturity profile, operating cash flows and the availability of funding so as toensure that all refinancing, repayment and funding needs are met. As part of its overall prudent liquidity management,the Group maintains sufficient levels of cash or cash convertible investments to meet its working capital requirements.In addition, the Group strives to maintain available banking facilities of a reasonable level to its overall debt position.As far as possible, the Group raises committed funding from both capital markets and financial institutions andprudently balances its portfolio with some short term funding so as to achieve overall cost effectiveness.

(e) Credit RiskCredit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits andmonitoring procedures. Credit risks are minimised and monitored via strictly limiting the Group’s associations tobusiness partners with high creditworthiness. Trade receivables are monitored on an ongoing basis via Groupmanagement reporting procedures.

The Group does not have any significant exposure to any individual customer or counterparty nor does it have anymajor concentration of credit risk related to any financial instruments.

(f) Fair ValuesThe following methods and assumptions are used to estimate the fair values of the following classes of financialinstruments:

(i) Cash and Cash Equivalents, Trade and Other Receivables/PayablesThe carrying amounts approximate fair values due to the relatively short term maturity of these financialinstruments.

(ii) Marketable SecuritiesThe fair value of quoted shares is determined by reference to stock exchange quoted market bid prices at theclose of the business on the balance sheet date.

(iii) It is not practical to estimate the fair values of amounts due to/from ultimate holding corporation and relatedcompanies, due principally to a lack of fixed repayment term entered by the parties involved and without incuringexcessive costs. However, the Group does not anticipate the carrying amounts recorded at the balance sheet dateto be significantly different from the values that would eventually be received or settled.

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27. SEGMENTAL INFORMATIONThe directors are of the opinion that all inter-segment transactions have been entered into in the normal course of businessand have been established on terms and conditions that are not materially different from those obtainable in transactionswith unrelated parties.

Timber Plantation Investment Eliminations Consolidated

2002 2001 2002 2001 2002 2001 2002 2001 2002 2001RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

REVENUE ANDEXPENSES

RevenueExternal sales 10,744 9,082 45,844 36,858 — — — — 56,588 45,940Inter-segment

sales 9,954 7,411 28,052 16,219 — — (38,006) (23,630) — —

Total revenue 20,698 16,493 73,896 53,077 — — (38,006) (23,630) 56,588 45,940

ResultSegment results (9,518) (6,038) 6,164 2,941 (583) (3,009) 6,296 221 2,359 (5,885)Taxation — — — — — — — — (1,428) (91)

Net profit forthe year (9,518) (6,038) 6,164 2,941 (583) (3,009) 6,296 221 931 (5,976)

ASSETS ANDLIABILITIES

Segment assets 69,136 62,726 135,690 149,621 840 1,456 — — 205,666 213,803

Segmentliabilities 3,933 11,599 1,909 3,311 — — — — 5,842 14,910


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Share Performance ChartsCarta Prestasi Saham

0

2

4

6

10

8

12Million Shares/Juta Saham

200

600

800

1,000

400

Point/Mata

1.5

Price/Harga(RM)

KLSE Composite Index/Indeks Komposit BSKL

Low/RendahHigh/Tinggi Closing Price/Harga Penutup

Volume Traded/Jumlah Diniagakan

Share Prices (High and Low) and Closing Prices for the period from 31 January 1999 to 30 April 2003Harga Saham (Tinggi dan Rendah) dan Harga Penutup bagi tempoh 31 Januari 1999 hingga 30 April 2003

KLSE Composite Index for the period from 31 January 1999 to 30 April 2003Indeks Komposit BSKL bagi tempoh 31 Januari 1999 hingga 30 April 2003

Volume Traded for the period from 31 January 1999 to 30 April 2003Jumlah Diniagakan bagi tempoh 31 Januari 1999 hingga 30 April 2003

1.0

2.5

2.0

0

200320020

200120001999

20032002200120001999

20032002200120001999

Share Price Performance / Prestasi Harga Saham (RM)1998 1999 2000 2001 2002

High / Tinggi 1.77 2.20 2.45 1.53 1.64Low / Rendah 0.63 0.98 1.22 0.92 0.95

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Authorised Share Capital / Modal Saham Dibenarkan : RM200,000,000Issued and Fully Paid-Up Capital / Modal Diterbitkan dan Dibayar Penuh : RM 96,000,000Class of Shares / Jenis Saham : Ordinary Shares of RM1.00 each /

Saham Biasa RM1.00 setiap satu

VOTING RIGHTS OF SHAREHOLDERS / HAK MENGUNDI PEMEGANG SAHAMEvery member of the Company present in person or by proxy shall have one vote on a show of hand and in the case of apoll shall have one vote for every share of which he/she is the holder. / Setiap ahli-ahli Syarikat yang hadir secara peribadiatau 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.

BREAK DOWN OF SHAREHOLDINGS / PECAHAN PEMEGANG SAHAMSize of Shareholdings No. of

Shareholders Percentage No. of Shares PercentageJumlah Pemegang Saham Bil. Pemegang

Saham Peratus Bil. Saham Peratus

Less than 1,000 / Kurang daripada 1,000 7 0.18 3,000 –1,000-10,000 3,735 93.26 9,281,000 9.6710,001-100,000 226 5.64 6,540,000 6.81100,001 to less than 5% of Issued Capital /100,001 hingga kurang daripada 5% Modal Diterbitkan 35 0.87 22,302,000 23.235% and above of Issued Capital /5% dan lebih daripada Modal Diterbitkan 2 0.05 57,874,000 60.29

TOTAL / JUMLAH 4,005 100.00 96,000,000 100.00

TOP THIRTY SECURITIES ACCOUNT HOLDERS / TIGA PULUH PEMEGANG AKAUN SEKURITI UTAMA(Without aggregating the securities from different securities accounts belonging to the same depositor /Tanpa mengagregat sekuriti daripada akaun sekuriti yang berlainan yang dimiliki pendeposit yang sama)Name No. of Shares PercentageNama Bil. Saham Peratus

1. Johor Corporation 52,914,000 55.12

2. Yeoh Kean Hua 4,960,000 5.17

3. BBMB Secs Noms (T) Sdn Bhd – A/C PJB Capital Sdn Bhd 3,332,000 3.47

4. Bank Simpanan Nasional 2,021,000 2.11

5. PRB Noms (T) Sdn Bhd 2,000,000 2.08– A/C Rubber Industry Smallholders Development Authority

6. Permodalan Nasional Berhad 1,200,000 1.25

7. Alliance Group Noms (T) Sdn Bhd 972,000 1.01– PHEIM Asset Management Sdn Bhd for Employees Provident Fund

8. Employees Provident Fund Board 934,000 0.97

9. Johan Enterprise Sdn Bhd 836,000 0.87

10. Yeoh Meng Ghee 801,000 0.83

11. M & A Nom (A) Sdn Bhd – A/C Pedigree Limited 775,000 0.81

12. Johor Capital Holdings Sdn Bhd 750,000 0.78

Shareholdings Statistics as at 15 April 2003

Perangkaan Pemegang Saham pada 15 April 2003

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Name No. of Shares PercentageNama Bil. Saham Peratus

13. Suraya Elland Yusoff 700,000 0.73

14. Malaysia Noms (T) Sdn Bhd – A/C Zalaraz Sdn Bhd 607,000 0.63

15. Lembaga Tabung Haji 600,000 0.63

16. Pristine Bay Sdn Bhd 572,000 0.60

17. PRB Noms (T) Sdn Bhd – A/C Rubber Industry Smallholders Development Authority 550,000 0.57

18. Bank Simpanan Nasional 527,000 0.55

19. Tan Paik Sim @ Tan Phaik Im 510,000 0.53

20. Kulim (Malaysia) Berhad 500,000 0.52

21. Amanah Raya Noms (T) Sdn Bhd – A/C Amanah Saham Johor 468,000 0.49

22. Wong Yoon Chyuan 440,000 0.46

23. Yeoh Tiong Ghee 398,000 0.41

24. Southern Noms (T) Sdn Bhd – A/C Chin Keo Chye @ Chin Key Soo 309,000 0.32

25. Yeoh Phek Leng 302,000 0.31

26. Sindora Berhad – A/C Share Buy Back Account 289,000 0.30

27. Yeoh Swee Leng 280,000 0.29

28. Wong Yoon Tet 218,000 0.23

29. Lew Sew Yee @ Liew Sew Yee 200,000 0.21

30. Hong Leong Finance Bhd – A/C for Surinder Singh a/l Wassan Singh 197,000 0.21

SUBSTANTIAL SHAREHOLDERS / PEMEGANG SAHAM UTAMAName No. of Shares PercentageNama Bil. Saham Peratus

1. Johor Corporation 52,914,000 55.12Johor Corporation Group – Johor Capital Holdings Sdn Bhd 750,000

– Pristine Bay Sdn Bhd 572,000– PJB Capital Sdn Bhd 3,332,000– Kulim (Malaysia) Berhad 500,000 5,154,000 5.37

2. Yeoh Kean Hua 4,960,000 5.17

ANALYSIS OF SHAREHOLDERS / ANALISA PEMEGANG SAHAMNo. of

Shareholders Percentage No. of Shares PercentageBil. Pemegang

Saham Peratus Bil. Saham Peratus

Malaysian / Malaysia – Bumiputra / Bumiputera 656 16.38 68,914,000 71.78– Others / Lain-lain 3,250 81.15 24,652,000 25.68

Foreigners / Asing 99 2.47 2,434,000 2.54

TOTAL / JUMLAH 4,005 100.00 96,000,000 100.00

Location/Property Land Area Built-up Area Tenure Approximate Net Book ValueDescription (Hectares/ (Hectares/ Age of Property as at

’000 Sq. Ft.) ’000 Sq. Ft.) (Year) 31 December 2002RM’000

Mukim of RengamKluang, Johor (Sindora Estate)– Oil palm and rubber plantations 3,939/ 27.03/ 99 years lease expiring 15 64,447

24.01.2086– Palm oil mill 16/ /120.7 No separate title 4 7,805

(Part of Sindora Estate)

Mukim of Chaah BahruBatu Pahat, Johor(Sungai Simpang Kiri Estate)– Oil palm plantation 2,371.7/ 4.67/ 99 years lease expiring 3, 20 and 24 27,328

20.03.2081 and 22.12.2077

Mukim of Ulu Sungai JohorKota Tinggi, Johor– Vacant land for 20 units /68 n.a. 99 years lease expiring 17 181

of terrace houses 18.04.2085– Vacant land for 28 units /176 n.a. 99 years lease expiring 1 63

of terrace houses 15.08.2099– Industrial land and buildings 2.56/ 60 years lease expiring 3 132

24.11.2059– Industrial land and buildings /2,344 /857 60 years lease expiring 21 11,164

for office and factory 30.01.2041– Factory building/moulding factory /5 /5 60 years lease expiring 17 512

30.01.2041– 1 unit of double-storey bungalow /6 /3 99 years lease expiring 16 81

(staff resident) 18.04.2085– 5 units of double storey

semi-detached houses /32 /9 99 years lease expiring 16 259(staff residents) 18.04.2085

– 6 units of single storeysemi-detached houses /32 /7 99 years lease expiring 16 224(staff residents) 18.04.2085

Mukim of PlentongJohor Bahru, Johor(No. 6, 37, 39 & 41)Jalan Perang, Taman Pelangi,Johor Bahru.– 4 units of 3 storey shophouses /8 /18 Freehold 21 1,895

The market value of the above mentioned properties was last assessed on 11 November 1993.

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List of Group’s Landed Properties

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Lokasi/Keterangan Keluasan Tanah Kawasan Dibina Hakmilik/ Jangkaan Usia Nilai Buku BersihHartanah (Hektar/ (Hektar/ Pegangan Harta Milikan 31 Disember 2002

’000 Kps.) ’000 Kps.) (Tahun) RM’000

Mukim RengamKluang, Johor (Ladang Sindora)– Ladang kelapa sawit dan getah 3,939/ 27.03/ Pajakan 99 tahun tamat 15 64,447

24.01.2086– Kilang kelapa sawit 16/ /120.7 Tiada surata hakmilik tersendiri 4 7,805

(sebahagian Ladang Sindora)

Mukim Chaah BahruBatu Pahat, Johor(Ladang Sungai Simpang Kiri)– Ladang kelapa sawit 2,371.7/ 4/67/ Pajakan 99 tahun tamat 3, 20 and 24 27,328

20.03.2081 dan 22.12.2077

Mukim Ulu Sungai JohorKota Tinggi, Johor– Tanah kosong dimiliki untuk /68 n.a. Pajakan 99 tahun tamat 17 181

pembangunan 20 unit perumahan 18.04.2085– Tanah kosong dimiliki untuk /176 n.a. Pajakan 99 tahun tamat 1 63

pembangunan 28 unit perumahan 15.08.2099– Tanah perindustrian dan bangunan 2.56/ Pajakan 60 tahun tamat 3 132

24.11.2059– Tanah perindustrian dan bangunan

yang digunakan sebagai pejabat /2,344 /857 Pajakan 60 tahun tamat 21 11,164dan kilang 30.01.2041

– Bangunan kilang/kilang kayu kumai /5 /5 Pajakan 60 tahun tamat 17 51230.01.2041

– 1 unit banglo dua tingkat /6 /3 Pajakan 99 tahun tamat 16 81(kediaman anggota pekerja)

– 5 unit rumah berbandung dua tingkat /32 /9 Pajakan 99 tahun tamat 16 259(kediaman anggota pekerja) 18.04.2085

– 6 unit rumah berbandungsatu tingkat /32 /7 Pajakan 99 tahun tamat 16 224(kediaman anggota pekerja) 18.04.2085

Mukim PlentongJohor Bahru, Johor(No. 6, 37, 39 & 41)Jalan Perang, Taman Pelangi,Johor Bahru.– 4 unit rumah kedai tiga tingkat /8 /18 Milikan kekal 21 1,895

Nilai pasaran hartanah tersebut di atas telah ditaksir pada 11 November 1993.

Senarai Hartanah Kumpulan

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_____________________________________Signature of Shareholder(s)/Common Seal of Appointer

Signed this ................... day of ...................... 2003.

Notes:-1. A member entitles to attend and vote at this meeting is entitled to appoint a proxy/Corporate Representative and vote instead of him. A proxy/Corporate

Representative may, but need not be a member of the Company.2. The instrument appointing a proxy/Corporate Representative shall be in writing under the hand of the appointer or his attorney duly authorised in writing or if

the appointer is a Corporation/Company either under seal or in some other manner approved by its Board of Directors. Where a member appoints twoproxies/Corporate Representatives, the appointment shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy.

3. The instrument appointing a proxy/Corporate Representative must be deposited at the registered office of the Company, 13th Floor, Menara Johor Corporation,KOTARAYA, 80000 Johor Bahru, Johor not less than forty eight (48) hours before the time appointed for holding the meeting or any adjournment thereof.

4. The Ordinary Resolution 1 proposed as a special business is to allow the Company to buy-back its own shares and cancel, retain or re-distribute them, dependingon the situation. A cancellation would have enhance the earning per share and may improve the demand for the Company’s shares in the stock market. Byretaining them, the Company may sell the shares later if their value appreciate thus realizing capital gains. Alternatively these shares can be also be distributedas share dividends to reward shareholders.

5. The Ordinary Resolution 2 proposed as a special business is primarily intended to give the Board of Directors the flexibility to issue and allot shares at any timeand for such purposes as it considers justified in the interest of the Company without the need to convene a general meeting. The authority will, unlessotherwise revoked by the shareholders, expires at the next annual general meeting of the Company.

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

as *my/our Proxy/Corporate Representative to attend and vote for *me/us and on *my/our behalf at the Thirtieth (30th) AnnualGeneral Meeting of the Company to be held on Wednesday, 11 June 2003 at 12.00 noon or at any adjournment thereof.Should you desire to direct your Proxy/Corporate Representative how to vote on the Resolutions set out in the Notice of Meetingand as summarised below, please indicate with an “X” in the appropriate space. If no specific direction as to voting is given,Proxy/Corporate Representative will vote or abstain at *his/her discreation.

Proxy/Corporate Representative Form

RESOLUTION FOR AGAINST

1. To receive and adopt the Report and Audited Accounts (Resolution 1)

2. To approve final dividend of 5% tax exempt for the financial year ended 31 December 2002 (Resolution 2)

3. To re-elect Director:i. Tan Sri Dato’ Muhammad Ali Hashim (Resolution 3)ii. Kua Hwee Sim (Resolution 4)iii. Hj Esa bin Mamek (Resolution 5)iv. Halmi bin Jasmin (Resolution 6)v. Tan Sri Datuk Arshad Ayub (Resolution 7)

4. To approve Directors’ Fees (Resolution 8)

5. To re-appoint Messrs Ernst & Young as Auditors (Resolution 9)

6. Ordinary Resolution No. 1 – Proposed renewal of the authority for the Company to purchase its own shares (“Proposed Share Buy-Back”) (Resolution 10)

7. Ordinary Resolution No. 2 – Authority to issue shares pursuant to Section 132D of the Companies Act, 1965 (Resolution 11)

Number of Shares held (units)

SINDORA BERHAD13th Floor, Menara Johor Corporation

KOTARAYA, 80000 Johor BahruJohor

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_____________________________________Tandatangan Pemegang Saham/

Cop Mohor PelantikDitandatangani pada ........................ haribulan ................... 2003.

Nota:1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini berhak melantik seorang proksi/Perwakilan Syarikat untuk menghadiri bagi pihak

dirinya. Seorang proksi/Perwakilan Syarikat tidak semestinya seorang ahli Syarikat.2. Suratcara perlantikan proksi/Perwakilan Syarikat hendaklah dibuat secara bertullis oleh pelantik atau wakil mutlak yang berkuasa atau jika pelantik adalah sebuah

Perbadanan/Syarikat, suratcara mestilah disempurnakan di bawah meteri Perbadanan/Syarikat atau lain-lain cara yang diluluskan oleh Lembaga Pengarah. Apabilaseorang Ahli melantik dua orang proksi/Perwakilan Syarikat, perlantikan tersebut tidak akan diterima sebagai sah melainkan setelah dinyatakan bilangan sahamyang akan diwakili oleh mereka.

3. Suratcara perlantikan proksi hendaklah sampai di Pejabat Berdaftar Syarikat, di Tingkat 13, Menara Johor Corporation, KOTARAYA, 80000 Johor Bahru, Johortidak lewat dari empat puluh lapan (48) jam sebelum Mesyuarat ditetapkan atau sebarang mesyuarat penangguhannya.

4. Resolusi Biasa 1 yang dicadangkan sebagai urusan khas adalah untuk membolehkan Syarikat membeli-balik saham-saham Syarikat dan membatal, menyimpanatau mengagihkannya bergantung kepada keadaan. Pembatalan akan meningkatkan nilai seunit saham dan menggalakkan permintaan saham Syarikat di pasaran.Dengan menyimpan saham berkenaan, Syarikat boleh menjualnya semasa harga meningkat dan memberi pulangan modal. Saham-saham boleh juga diagihkansebagai dividen kepada pemegang saham.

5. Resolusi Biasa 2 yang dicadangkan adalah untuk membolehkan Lembaga Pengarah mengeluarkan saham Syarikat apabila perlu untuk kepentingan Syarikat tanpamengadakan mesyuarat agung luarbiasa. Kuasa ini akan berakhir pada mesyuarat agung tahunan akan datang kecuali jika dibatalkan oleh ahli sebelumnya.

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

sebagai *Proksi/Perwakilan Syarikat *saya/kami untuk menghadiri dan mengundi mengikut arahan yang tertentu di atas resolusi-resolusi bagi pihak *saya/kami di dalam Mesyuarat Agung Tahunan Yang Ke Tiga Puluh (30) yang akan diadakan pada hariRabu, 11 Jun 2003, jam 12.00 tengahari dan sebarang mesyuarat penangguhannya. Jika anda ingin mengarahkanProksi/Perwakilan Syarikat anda mengikut arahan yang tertentu di atas resolusi-resolusi yang tercatat di dalam Notis Mesyuarat,tandakan “X” di tempat yang berkenaan. Jika arahan tertentu tidak diberi, Proksi/Perwakilan Syarikat anda akan mengundimengikut budibicaranya sendiri.

Borang Proksi/Perwakilan Syarikat

RESOLUSI MENYOKONG MENENTANG

1. Menerima dan meluluskan Laporan dan Akaun Beraudit (Resolusi 1)

2. Meluluskan dividen akhir sebanyak 5% dikecualikan cukai bagi tahun berakhir 31 Disember 2002 (Resolusi 2)

3. Melantik semula Pengarah-pengarah berikut:i. Tan Sri Dato’ Muhammad Ali Hashim (Resolusi 3)ii. Kua Hwee Sim (Resolusi 4)iii. Hj Esa bin Mamek (Resolusi 5)iv. Halmi bin Jasmin (Resolusi 6)v. Tan Sri Datuk Arshad Ayub (Resolusi 7)

4. Meluluskan Yuran Pengarah (Resolusi 8)

5. Melantik semula Tetuan Ernst & Young sebagai Juruaudit (Resolusi 9)

6. Resolusi Biasa No. 1 – Cadangan pembaharuan bidangkuasa Syarikat untuk membeli-balik sahamnya (“Cadangan Beli-balik Saham”) (Resolusi 10)

7. Resolusi Biasa No. 2 – Bidangkuasa untuk menerbitkan saham selaras dengan Seksyen 132D Akta Syarikat, 1965 (Resolusi 11)

Bilangan Saham (Unit)

SINDORA BERHADTingkat 13, Menara Johor Corporation

KOTARAYA, 80000 Johor BahruJohor

Setem

LAPORAN TAHUNAN 2002 ANNUAL REPORT - I3investor

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