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Greater global prominence
MISC Berhad 8178-H Level 25, Menara Dayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur, Malaysia T 603 2273 8088 F 603 2273 6602
MISC Berhad: Expanding our reach to all corners of the globe
Every move we make is vision and force personified.
At MISC Berhad, we keep forging ahead; charting the waters of success. From our humble beginnings with a micro fleet of only five, we are now the world's largest single owner-operator of LNG carriers. Through our partnerships and with a core business in energy and logistics, we continue to sustain and build our name – from our first deepwater facility, FPSO Kikeh, to our latest delivery of LNG cargoes to a Scandinavian country, Norway. We are going places. Each step is a positive step towards success and global prominence.
that's paying off
MISC is a Believer of innovation, strategic development, strong manpower and global vision.
Petronas Twin Towers, Malaysia
Our goal is to achieve global championship in energy transportation and logistics services. With this focus, MISC has grown significantly. Our streamlined business has now paid off with MISC moving forward with an enhanced competitive edge. Over the last three years, we have continuously built our assets. We are also increasing our focus in the construction of deepwater facilities, drydocking of large tankers and marine conversion of FPSOs and FSOs. As we transcend and aspire to create global prominence, we are supported by one unified synergy to be a: Visionary, Strategist, Partner,
People Enhancer, Innovator, Educator and HSE Practitioner.
Profit Before Taxation
Shareholders’ Fund Total Assets
Chairman’s Statement page 034 Investors Report 004
Current Year Financial Highlights
Over 340 Ports in 69 Countries
Corporate Accountability 034
5-Year Financial Highlights
Statistics on Shareholdings
MISC at a Glance
Statement on Corporate Governance
Internal Control Statement
In the News
Board & Management 023
Terms of Reference of the Board Audit Committee
MISC is confident of sustaining business growth and moving closer in achieving its vision" Sustaining Operational Growth 048 President/CEO's Report 084 People Highlights 190 Properties Owned by MISC Berhad & its Subsidiaries 086 Health. Safety & Environment 194 List of Vessels 070 • Future Outlook Corporate Social Responsiblity 092 MISC & Corporate Social Responsibility 204 MISC Offices Around the World 072 Corporate Highlights 206 Notice of Annual General Meeting 050 • Segment Operations 078 Investor Relations 094 Youth Development 210 Financials 097 Financial Statements Statement Accompanying Notice of Annual General Meeting 066 • Fleet Management Human Capital 082 People Development 068 • Human Resource Management Form of Proxy .President/CEO’s Report page 048 "With the business expansion and improvement initiatives in place supported by the appropriate human resource strategies.
1%.156.9 million.1 million. The increase was mainly due to the increase in ships.7 million which was 7. the said increase has been offsetted by the decrease in current assets amounting to RM1. Debt/Equity Ratio (ratio) Debt/equity ratio increased marginally to 0.3 million.37 from 0.6 million for the current year. Shareholders' Funds (RM' million) Shareholders' funds increased by 2. property.493. the financial year's profit before taxation was RM2.2 million resulting from the additional earnings retained for the financial year. .623.8 million from RM27. and 10 sen interim dividend for FY 2006/2007.2% to RM27.698.9 and investments in jointly controlled entities of RM363.current year financial highlights 004 Current Year Financial Highlights Profitability (RM' million) Excluding the gain on disposal of ships of RM436.80 sen or 1.954. Dividend Paid per Share (sen) Dividend paid per share as reflected in the financial statement was at 30 sen per share for the current year. However.086. Balance Sheet (RM' million) Total assets increased by 1.36 due to the increase in Group’s borrowings. The decrease in profit before taxation was mainly due to softening of rates and increase in cost of operations.7% to RM18.5 million (excluding gain on disposal of RM202. Earnings Per Share (sen) Earning per share increased by 0.3 million). comprising 20 sen final dividend for FY 2005/2006. plant and equipment of RM1.6% lower than the preceding year’s profit before taxation of RM2.2 million from RM18.639.111.
8 03 14.2 06 27.4 15.5* 04 61.33 Total Assets Shareholders' Funds Total Debt/Equity Net Debt/Equity .3 07 76.0 1.8 18.54 0.2 05 25.310.747.6* 15.738.25 06 0.726.156.623.8 05 10.0* 03 35.900.198.3 06 10.1 2.7 30.18 05 0.355.8 4.37 0.1 18.8 04 22.0* * Adjusted for bonus Issue Revenue Profit before Taxation Earnings per Share Dividends per Share Balance Sheet (RM' million) Debt/Equity Ratio (ratio) 07 27.639.431.2* 15.0 05 128.1* 22.44 0.0 06 75.433.current year financial highlights 005 Profitability (RM' million) Earnings (sen per share) 07 11.606.3 2.36 0.9 04 7.650.5 11.66 03 0.9 30.3 07 0.3 9.279.930.954.25 04 0.9 2.4 03 5.82 0.351.618.326.
2 27.7 12.5 9.7 3.738.1 8.0 76.1 22.0 128.356 2003 2003 1.5 10.3 6.4 1.3 5.5 27.5 2.0 248.1 558.2 6.859.3 1.6 30.2 27.0 473.356.0 26.9 15.36 13.859.7 (3.399.5 13.1 0.3 14.8 18.7 1.214.954.2 30.6 460.606.310.2 0.431.8 15.1 24.665.1 1.852.5 31.3 3.9 837.2 1.6 14.5 18.37 13.0 35.0 61.3 26.804 6.6 5-Year Financial Highlights Shareholders’ funds Total assets Total liabilities Total borrowings Capital expenditure Net tangible assets per share (sen)* Debt/equity ratio Interest cover ratio * Adjusted for bonus issue ** The 2007 & 2006 audited summary data reflects the adoption of new and revised FRSs.310.3 0.3 10.311 14 2003 4.326.650.355.823 2007 15 16 2007 6.326.763.6 24.726.8 4.764 31 2005 8.5 3.6 278.4 4.156.215 Re tur n 2004 2004 2.822.1 1.719.875.3 2.900.279.9 4.2 6.8 18.8 22.623.876.859.8 9.8 25.8 2.930.6 2004 RM’million 7.351.3 2.244.4 9.4 382.752.9 12.290 20 2004 9.608 2006 2005 2005 4.9 11.54 15.9 9.1 75.245 2007 RM’million** Revenue Profit before taxation Profit for the year attributable to equity holders of the Corporation Taxation Dividends Earnings per share (sen)* Return on assets (%) Return on shareholders’ funds (%) Profit before taxation as % of revenue Profit for the year attributable to equity holders of the Corporation as % of revenue Paid-up capital 11.5) 558.182.0 33.7 1.852 2.1 2.6 30.2 44.747.6 7.912.639.433.4 2.114.9 2. .804.289.6 2003 RM’million 5.032.3 15.1 9.9 4.82 17.4 2006 RM’million ** 2005 RM’million 10.198.2 0.719.097.618.5-year financial highlights 006 on Sh are ho lde rs’ Fu nd s (% ) Pr Ho ofit lde for rs th of e Y th ea eC rA or ttr po ib ra uta tio b n ( le RM to 'm Equ illio it n) y 2007 2006 2006 To tal Bo rro wi ng s (R M' mi llio n) 2.074.5 44.2 20.2 25.2 10.44 14.607.0 1.9 0.
433.244.7 (3.4 1.859.885.3 18.8 15.7 3.8 2.5-year financial highlights 007 Ex pe nd itu re (RM 'm illio n) 4.9 2.9 837.097.3 3.1 9.665.6 338.6 2005 RM’million *** 2004 RM’million *** 2003 RM’million*** 5.852.665 2005 382 2005 16 2004 6.3 24.4 4.1 1.182.2 27.876 2004 Int ere st Ca pit al 279 2004 18 2003 1.0 76.36 13.8 22.5 10.986.804.0 9.3 27.o f ti me s) 2007 Pe rS ha re (se n) 2007 2007 13 14 2006 2006 2006 2005 Ne tT an gib le As set s 2.2 27.9 18.607.650.114.69 16.074.9 12.0 26.9 10.3 22.0 473.0 114. The restated selected consolidated financial data for the financial years 2005.48 15.4 13.2 6.859.2 7.623.142.822.8 4.3 15.8 18.242.719.930.639.4 9.2 25.8 4.0 33.326.231.2 6.7 24.241.6 30.5 27.4 428.8 9.241.8 18.4 2006 RM’million 10.4 8.5) 558.1 0.0 49.0 1.1 2.156.2 39.569.1 1.37 13.8 10.4 0.0 33.954.747.900.912.356.2 5.584. .8 10.719.1 0.113.3 6.912 2003 248 2003 14 2007 RM’million Revenue Profit before taxation Profit for the year attributable to equity holders of the Corporation Taxation Dividends Earnings per share (sen)* Return on assets (%) Return on shareholders’ funds (%) Profit before taxation as % of revenue Profit for the year attributable to equity holders of the Corporation as % of revenue Paid-up capital Shareholders’ funds Total assets Total liabilities Total borrowings Capital expenditure Net tangible assets per share (sen)* Debt/equity ratio Interest cover ratio 11. 2004 and 2003 have not been audited and is presented solely for comparison purposes.198.9 24.5 2.0 315.5 3.35 22.4 1.2 0.2 1.399.6 4.8 40.9 12.5 8.7 12.857.214.8 *** The selected consolidated financial data for the years 2005.9 16.764.042.3 1.0 7.1 558.1 0.9 1.859. 2004 and 2003 have been restated for the adoption of FRS121: The Effects of Changes in Foreign Exchange Rates.7 1.272.7 25.3 2.894.4 17.3 26.6 460.399 3.1 75.9 13.4 1.327 473 460 Co ve rR ati o( no .606.875.
And travelled we have. Across oceans and seas. one must travel. the Believer in us continue to explore the wonderful world of opportunities. crossing all boundaries and traversing the world’s unchartered waters.We never stop believing and we never stop going forward. We believe that in order to see what the world has to offer. .
maritime transportation is our core business and we support the nation’s aspiration to become a leading maritime nation. .Vision Statement To be the preferred provider of world-class Maritime Transportation and Logistics Services Mission Statement We are a logistics service provider.
Shared Values LOYALTY INTEGRITY Loyal to nation and corporation Honest and upright PROFESSIONALISM COHESIVENESS Committed. proactive and always striving for excellence United in purpose Partner: Growing operational strength through partnership building Through the close collaborations achieved in the successful completion of various projects and ventures. MISC has further solidified its belief in growing through partnerships. . innovative.
all linked by the latest information and logistics systems support. Endowed with such diverse operations. MISC has indeed become a truly international player. well-diversified and relatively young fleet of more than 100 vessels with a combined tonnage of more than 8 million deadweight tonnes and land-based facilities managed by experienced personnel enable MISC to meet the various demands of its customers. is the leading international shipping line of Malaysia. This network also extends to many inland destinations and landlocked markets. The principal business of the Corporation consists of ship-owning. successful Corporation that continues to grow on the solid foundation upon which it was built.MISC at a glance 012 MISC at a Glance MISC Berhad (MISC). efficient and competitive services. MISC offers total logistics solution to its customers.Best Brand for Transportation-Shipping 2006. As a member of the PETRONAS Group.Asia’s 5th Best Managed Company 2006. Since its establishment in 1968. MISC is expected to benefit and further strengthen business synergies and economies of scale from related operations of its business.Private Sector Category . The BrandLaureate . CILT Company of the Year 2006. awards picture from left to right: Finance Asia . Its modern. Through its wide network of shipping operations. Premier ICT Award 2006 . Lloyd’s List Maritime Asia Award . a subsidiary of PETRONAS. MISC has developed into a sound. MISC offers wide geographical coverage. Through the provision of reliable. The public listing of its shares in 1987 and its current standing as one of the top five companies in terms of market capitalisation as at June 2007 on the Main Board of Bursa Malaysia Securities Berhad further demonstrates its sound standing and viability.LNG Operator of the Year 2006. ship management and other related logistics and maritime transportation services.
eight chemical tankers. 21 May 2007 MISC’s expansion into the floating production systems (FPS) and floating storage and offloading vessels (FSO) business is gaining momentum. These include medium – term charters with Gas de France and BG plus a long term charter for two newbuildings with Yemen LNG. MISC Bhd has landed themselves with contracts to build FPSO vessels and a future overseas job. nine Aframax oil tankers and very large crude carriers (VLCC) as well as one big container vessel. they have successfully secured a total of three third party LNG shipping contracts. 29 Nov 2006 MISC Bhd is investing 20 billion ringgit (USD5.5 billion) over the next five years on a host of ships in a bid to become a global transportation company. with plans to at least double its fleet. Through its subsidiary Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE).in the news 013 In the News AET bullish on cracking VLCC ‘top five’ Lloyd’s List. MISC: Full Sail Ahead Asia Oil & Gas Monitor. 19 Nov 2006 MISC Bhd. 6 Nov 2006 New Straits Time. 21 Sept 2006 MMHE equips itself to become full-fledged deepwater centre New Straits Times. . the shipping firm and the world’s largest owner of liquefied natural gas carriers is looking to broaden its base of business beyond its parent to third party contracts. Growing deepwater sector a boon to MISC The Star. MISC commences first HALAL express services Halal Journal. 4 Dec 2006 Auto logistics tie-up between MILS and BLG New Straits Times. The company's order list includes seven liquefied natural gas (LNG) tankers. To date. Already the world's second largest owner and operator of Aframax tankers. 25 Dec 2006 Offshore business to make up 6-7pc of revenue: MISC MISC increases its VLCC fleet The Star. 24 Aug 2006 AET is setting its sights on joining the top five very large crude carrier owners. the former American Eagle Tankers and now wholly owned unit of MISC wants to become a top player in the VLCC business. 30 Mar 2007 MISC Bhd expects its offshore business to make up between 6 and 7 percent of total revenue over the next five years. MISC determined to retain LNG leadership Lloyd’s List.
fleet strength 014 Fleet * Strength LNG Carriers Aman Class Tenaga Class Puteri Class Puteri Satu Class Seri A Class Seri B Class 3 5 5 6 4 1 (as at 30 June 2007) Petroleum Tankers VLCC Aframax Product Long Range 2 (LR2) 9 31 5 1 Chemical Tankers Melati Class Anggerik Class Semarak Class 7 4 2 24 46 13 Containerships Above 5000 TEUs 3000-5000 TEUs 1000-3000 TEUs Below 1000 TEUs 2 3 8 8 Offshore Floating Facilities FPSO** FSO 3 3 Others LPG Dry Bulk (Panamax) 3 1 21 * excluding in-chartered vessels and newbuildings ** including jointly owned FPSO 6 4 .
over 340 ports in 69 countries 015 Over 340 Ports in 69 Countries Algeria Arzew Bethioua Rio Grande Santos Vila Do Conde Argentina Bahia Blanca Rosario San Lorenzo Zona Comun Brunei Lumut Seria Bulgaria Varna Australia Adelaide Bellbay Brisbane Freemantle Gove Melbourne Newcastle Port Kembla Sydney Torres Strait Varanus Island Whitnell Bay Canada Duke Point Mackay Montreal Stag Terminal Vancouver BC Shekou Ulsan Yantian Yantai Yizheng Yingkou Xiamen Xijiang Terminal Xiaohudao Xinsha Taicang Taizhou Tianjin Tianjinxingang Zhangjiagang Zhuhai Zhoushan France Bordeaux Dunkirk Fos-sur-mer Lavera Le Harve Montoir de Bretagne Rouen Germany Brake Hamburg Gibraltar Gibraltar Greece Patras China Bohai BZ Terminal Chiwan Dailan Dongguan Fangcheng Guangzhou Huangpu Huizhou Jiangyin Jinzhou Lanshan Lianyungang Mai Liao Macau Nantong Ningbo Panyu Terminal Qingdao Rizhao Shanghai Shantou Costa Rica Punta Morales Hong Kong Hong Kong Denmark Fredericia India Chennai Cochin Dahej Hazira Haldia Kandla Marmagao Mumbai Mundra New Mangalore Nhava Sheva Ratnagiri Sikka Visakhapatnam Bahamas Freeport Dominican Republic San Pedro De Macoris Bangladesh Chittagong Egypt Adabiya Alexandria Damietta Idku Port Said Suez Canal Belgium Antwerp Ghent Zeebrugge Brazil Barcarena Munguba Paranagua Recife El Salvador Acajutla Estonia Tallinn .
over 340 ports in 69 countries 016 Over 340 Ports in 69 Countries Indonesia Arun Batam Badak Balikpapan Balongan Terminal Batam Island Belawan Bitung Blang Lancang Bontang Cilacap Dumai Exspan Terminal Jabung Terminal Jakarta Karimun Kuala Tanjung Manggis Bay North Pulau Laut Padang Sungai Pakning Sungai Udang Surubaya Taboneo Tanjung Bara Tanjung Uban Tuban Gioia Tauro La Spezia Livorno Porto Marghera Ravenna Sarroch Oil Port Jordan Aqaba Kenya Mombasa Sungai Udang Tanjung Pelepas Tanjung Bin Tanjong Sulong Tawau Kuwait Jamaica Kingston Mina Al Ahmadi Shuaiba Mexico Coatzacoalcos Namibia Japan Chita Chiba Futtsu Hakata Hatsukaichi Higashi Ogishima Himeji Hiroshima Ishigaki Kanakowa Kawasaki Kobe Mizushima Kisarazu Nagasaki Nagoya Nakagusuku Negishi Niigata Ogisjima Osaka Sakai Senboku I & II Sendai Shimizu Shimotsu Sodegaura Tokyo Yokkaichi Yokohama Latvia Ventspils Walvis Bay Netherlands Lithuania Klaipeda Amsterdam Rotterdam Scheveningen St Eustatius Vlissingen Lebanon Jubail Malaysia Bintulu Kerteh Terminal Kemaman Kidurong Kota Kinabalu Kuantan Kuching Kunak Labuan Lahad Datu Lumut Melaka Miri Muara Pasir Gudang Penara Terminal Port Dickson Port Klang Prai Sandakan Sibu New Zealand Auckland Lyttelton Napier Tauranga Wellington/Nelson Nigeria Bonny Island Iran Asaluyeh Bandar Abbas Bandar Khomeini Bandar Mashahr Norway Hemmerfest Rafnes Slagentangen Oman Qalhat Iraq Umm Qasr Pakistan Karachi Port Qasim Italy Brindisi Cagliari Genoa .
over 340 ports in 69 countries 017 Panama Panama Canal Singapore Singapore Taichung Yung An Papua New Guinea Alotau Kimbe Oro Bay South Africa Cape Town Durban Thailand Benchamas Terminal Laem Chabang Map Ta Phut Platong Terminal Rayong Sriracha South Korea Philippines Bataan Batangas Belanak Terminal Calbayog Danao Davao Gingoog Iligan Iloilo Manila Roxas Daesan Incheon Gwangyang Kwangyang Onsan Pyongtaek Pusan Tongyeong Ulsan Yeosu Trinidad & Tobago Point Fortin Tunisia La Skhirra Turkey Aliaga Bosporus Strait Dardanelles Izmir Istanbul Marmara Ereglisi Bayonne NJ Charleston Cove Point Dartmouth NS Delaware City Elba Charles Honolulu Houston Isabel Lake Charles New Orleans New York Norfolk Pasadena Point Comfort Porland ME Savannah Searsport Texas City Spain Algeciras Aviles Bilbao Barcelona Catagena Convent Huelva Las Palmas Sagunto Santa Cruz Tenerife Tarragona Venezuela Borburata Poland Gdansk Gdynia Vietnam Cai Lan Ho Chi Minh City Rang Dong Terminal Su Tu Den Vung Tau Puerto Rico Ponce United Arab Emirates Bandar Abbas Fujairah Jebel Ali Sharjah Qatar Ras Laffan Romania Constanta United Kingdom Sri Lanka Colombo Felix Towe Isle of Grain Liverpool Southampton Thamesport Russia Astrakhan Novorossiysk Sudan Marsa Bashayer Port Sudan Saudi Arabia Jeddah Ras Tanura Yanbo Taiwan Kaohsiung Suao United States of America Baltimore Baton Rouge .
Oil & Gas and Power Generation Plants) 100% Puteri Zamrud Sdn Bhd (Shipowning) 100% Red Harbour Sdn Bhd (Shipowning ) 49% Brazilian Deepwater Production Limited (Chartering of FPSO) 89% 100% Puteri Delima Satu (L) Pte Ltd (Shipowning) Puteri Firus Satu (L) Pte Ltd (Shipowning) 100% AET Shipmanagement (Singapore) Pte Ltd (formerly known as Eagle Shipmanagement Pte Ltd) (Ship Management) 49% Brazilian Deepwater Production Contractors Limited (Operations and maintenance of FPSO) 70% MMHE-SHI LNG Sdn Bhd (Maintenance.Group Structure LNG Petroleum Offshore Marine & Heavy Engineering 100% 100% PETRONAS Tankers Sdn Bhd (Ship Management) Puteri Delima Sdn Bhd (Shipowning) 100% MISC Tanker Holdings Sdn Bhd (Investment Holdings) 100% MISC Offshore Holdings (Brazil) Sdn Bhd (Investment Holdings) 49% MSE Holdings Sdn Bhd (Investment Holdings) 100% 100% MISC Tanker Holdings (Bermuda) Ltd (Investment Holdings) AET Tanker Holdings Sdn Bhd (Investment Holdings) SBM Systems Inc (FPSO Owner) 100% Malaysia Marine & Heavy Engineering Sdn Bhd (Ship Repair & Heavy Engineering) 100% Puteri Firus Sdn Bhd (Shipowning) 100% 49% FPSO Brasil Venture S. Repair & Refurbishment of LNG Carriers) 100% 100% AET Tankers Pte Ltd (Commercial Operations & Chartering) 100% 100% Puteri Nilam Satu (L) Pte Ltd (Shipowning) Puteri Intan Satu (L) Pte Ltd (Shipowning) Puteri Mutiara Satu (L) Pte Ltd (Shipowning) MISC Offshore Floating Terminals (L) Pte Ltd (FPSO Owner) 100% AET UK Limited (Commercial Operations & Chartering) 51% 100% Malaysia Deepwater Floating Terminal (Kikeh) Ltd (FPSO Owner) Malaysia Deepwater Production Contractors Sdn Bhd (Operations & Maintenance of FPSO) 100% AET Holdings (L) Pte Ltd (Invesment Holdings) 51% 100% 100% AET Inc Limited (Shipowing & Operations) 100% Puteri Zamrud Satu (L) Pte Ltd (Shipowning) 100% FPSO Ventures Sdn Bhd 51% (Operations and Maintenance of Offshore Floating Terminals) 50% American Marine & Offshore Services Ltd (Shipping Agent & Lightering) 100% Bunga Kasturi (L) Pte Ltd (Shipowning) 100% Offshore Marine Ventures Sdn Bhd (Chartering of Vessels) AET Agencies Inc (Property Owning) 51% Asia LNG Transport Sdn Bhd (Shipowning/ Ship Management) 100% AET Offshore Services Inc (formerly known as Pelican Offshore Services Co Inc) (Lightering Operations) 51% Asia LNG Transport Dua Sdn Bhd (Shipowning/ Ship Management) 100% MTL Petrolink Corp (Investment Holdings) 100% OMIP Inc (Ship Rental & Lightering Operations) Offshore Marine Services Inc (Lightering Operations) 100% 100% Harlink Inc (Lightering Operations) 100% Nuelink Inc (Lightering Operations) 100% Paramount Tankers Corp (Shipowning) 60% MISC Nigeria Ltd (Ship Operating & Other Activities Related To Shipping) .A (formerly known as SBM Espirito Santo Inc) (Operations & Maintenance) 100% 100% MSE Corporation Sdn Bhd (Processing of Copper Grit) 100% Puteri Intan Sdn Bhd (Shipowning) 100% AET Petroleum Tanker (M) Sdn Bhd (Shipowning) AET Shipmanagement (Malaysia) Sdn Bhd (formerly known as ESPL Fleet Management Sdn Bhd) (Ship Management) SBM Operacoes LTDA (Operations & Maintenance) 100% Techno Indah Sdn Bhd (Sludge Treatment) 100% Puteri Nilam Sdn Bhd (Shipowning) 100% 49% Brazilian Deepwater Floating Terminals Limited (Construction of FPSO) 100% Malaysia Tank Cleaning Company Sdn Bhd (Dormant) MMHE-ATB Sdn Bhd (Process Equipment for Petrochemical.
MILS Logistics Sdn Bhd (Automotive Solutions) KEER .group structure 019 Liner & Integrated Logistics 100% Maritime Education Others MISC Integrated Logistics Sdn Bhd (Integrated Logistics Services) 60% 100% Malaysian Maritime Academy Sdn Bhd (Education & Training for Seaman & Maritime Personnel) 100% 100% MISC Capital (L) Ltd (Investment Holdings) MILS – Seafrigo Sdn Bhd (Own.MILS Logistics FZCO (Integrated Logistics Services) 100% 50% 50% Transware Distribution Services Pte Ltd (Warehousing) Trans-ware Logistics (Pvt) Ltd (Inland Container Depot) MISC Properties Sdn Bhd (Dormant) 25% 50% 100% 100% MISC Haulage Services Sdn Bhd (Dormant) 100% 100% 100% MISC Trucking and Warehousing Services Sdn Bhd (Dormant) MISC Agencies Sdn Bhd (Shipping Agent) MISC Ferry Services Sdn Bhd (Dormant) MISC Ship Management Sdn Bhd (Dormant) 100% 100% 100% 100% MISC Agencies (Australia) Pty Ltd (Shipping Agent) MISC Agencies (U.V. manage and operate a Cold Storage Logistics Hub) 100% MISC International (L) Ltd (Investment Holdings) 60% MILS-SterilGamma Sdn Bhd (Sterilsation and fumigation facilities) 49% SL-MISC International Line Co Ltd (Shipowning) MISC Enterprises Holdings Sdn Bhd (Voluntary Liquidation) 60% BLG .K.) Ltd (Shipping Agent) MISC Agencies (Japan) Ltd (Shipping Agent) MISC Agencies (Netherlands) B. (Shipping Agent) 100% 100% 100% 100% MISC Agencies (Singapore) Pte Ltd (Shipping Agent) Leo Launches Pte Ltd (Launch Operator) 51% 65% MISC Agencies (Sarawak) Sdn Bhd (Shipping Agent) MISC Agencies (Thailand) Co Ltd (Shipping Agent) MISC Agencies (Lanka) Pvt Ltd (Shipping Agent) 49% 40% Note: Chemical Business is under MISC Berhad .MISC Logistics Co Ltd (Transport) RAIS .
84 7.920 654.628.386 13. 11.800. 10.512.22 2.836.000 9. of Shareholders 240 1.65 100. 17.670 1.762.039.404.001 to less than 5% of issued shares 5% and above of issued shares Total No. 20.65 1. P.163.60 1. Boston for Vanguard Emerging Markets Stock Indexfund HSBC Nominees (Asing) Sdn Bhd BBH (LUX) SCA for Fidelity Funds Malaysia Citigroup Nominees (Tempatan) Sdn Bhd ING Insurance Berhad (INV-IL PAR) Total 3.35 1.67 0.580.333.296 1.200 30.831.800 % 62.276.55 0.560 13.43 0.571 3. Alliancegroup Nominees (Tempatan) Sdn Bhd PHEIM Asset Management Sdn Bhd for Employees Provident Fund Mayban Nominees (Tempatan) Sdn Bhd Mayban Trustees Berhad for Public Ittikal Fund (N14011970240) Cartaban Nominees (Tempatan) Sdn Bhd Petronas for Petronas Retirement Benefit Scheme HSBC Nominees (Asing) Sdn Bhd BBH And Co.207.29 1.37 0.44 17. 8.067 1.500 10. 22.00 Substantial Shareholders Name of Shareholders Petroliam Nasional Berhad Employees Provident Fund Board * 30 Largest Shareholders No. Statistics on Shareholdings as at 29 June 2007 26.27 0. 15. 9. * inclusive of shares held through nominees.091.586 % of Issued Share Capital 0.36 0.000 1.000 .37 .719.24 0.45 0. 16.514 26.20 0.338 2. 7.500 61.01 27. 3.209.03 0.512 17. 12.613.000 10.32 1.198.29 48.922 18.322.A.49 0.827.600 10. 25. Exempt AN for Mellon Bank (Mellon) Amanah Raya Nominees (Tempatan) Sdn Bhd Amanah Saham Wawasan 2020 Citigroup Nominees (Asing) Sdn Bhd Exempt AN for Merrill Lynch Pierce Fenner & Smith Incorporated (Foreign) HSBC Nominees (Asing) Sdn Bhd Exempt AN for JPMorgan Chase Bank. Cimsec Nominees (Tempatan) Sdn Bhd Security Trustee (KCW Issue 1) HSBC Nominees (Tempatan) Sdn Bhd Nomura Asset Mgmt Malaysia for Employees Provident Fund Amanah Raya Nominees (Tempatan) Sdn Bhd Amanah Saham Didik Citigroup Nominees (Tempatan) Sdn Bhd Exempt AN for Prudential Assurance Malaysia Berhad SBB Nominees (Tempatan) Sdn Bhd Employees Provident Fund Board HSBC Nominees (Asing) Sdn Bhd TNTC for Mondrian Emerging Markets Equity Fund L.000.929. 23.96 70.064 % 62.523 37.25 0.200 85.29 0.296.165.865. 28.000 24.S.200 17.783.29 0.204.166.46 0.44 8.352.400 24. 4.071.400 8.746 % of Shareholders 3.1.552.000 7.91 2.000 10. Name of Shareholders No. National Association (U.156.045.682 108.38 0.18 No.920 305. 14.10.83 0.306.49 0.767.001 . Cartaban Nominees (Tempatan) Sdn Bhd Petroliam Nasional Berhad (Strategic INV) Employees Provident Fund Board Amanah Raya Nominees (Tempatan) Sdn Bhd Skim Amanah Saham Bumiputera Lembaga Kemajuan Tanah Persekutuan (FELDA) State Financial Secretary Sarawak Perbadanan Pembangunan Pulau Pinang Valuecap Sdn Bhd Lembaga Tabung Haji Amanah Raya Nominees (Tempatan) Sdn Bhd Amanah Saham Malaysia Malaysia Nominees (Tempatan) Sendirian Berhad Great Eastern Life Assurance (Malaysia) Berhad (PAR 1) Citigroup Nominees (Asing) Sdn.602 3.299.512.56 23.86 16.71 0.41 0.600 15.500 18. 13. of Shares 2.322.700 13. 5 6.29 0.000 100.909.275. Bhd. of Shares 2.66 0.831.100 6.000 39.136 501 2 6.00 0.100.20 0.statistics on shareholdings 020 Analysis of Shareholdings Size of Shareholdings Less than 100 100 .831 89. 29.200 14.324.) " Cartaban Nominees (Asing) Sdn Bhd Exempt AN for RBC Dexia Investor Services Trust (Clients Account) Kerajaan Negeri Pahang Permodalan Nasional Berhad Cartaban Nominees (Asing) Sdn Bhd Investors Bank And Trust Company for Ishares. Inc.434 10. 27.696. 24. 30.392. 18.600 16.300 7. 21.334 49. of Shares 6. 2.03 100.05 0.349.00 No.153 20. 19.47 0.
11.07 28.06 14.05.06 30.06 28.06.C Joint Venture Agreement between AET and Golden Energy Tanker Holdings Corporation Proposed acquisition of 49% interest in SBM Systems Inc and SBM Espirito Santo Inc Two new charters and two charter extensions for the existing LNG carriers Memorandum of Understanding between MISC and Universiti Teknologi Malaysia 1st quarter results for FY2006/07 Order confirmation of four Aframax tanker newbuildings and delivery of one very large crude carrier Joint Venture Agreement between MILS and BLG International Logistics GMBH & CO.06 29.07 30.06 10 3 21.04.06 Share Performance as at 29 June 2007 MISC Foreign Shares Volume (shares in million) 80 (RM) 12 60 9 20.03.06 23.10.11.06 30. KG Sale and lease-back of 5 Aframax tankers MISC Local Shares Volume (shares in million) 40 (RM) 12 07.06 29.07 29.12.04.03.L.05.02.07 31.07 Source : Bursa Malaysia Berhad Monthly Volume PX Low PX High Source : Bloomberg .06 30.05.05.06 31.06.06 31.11.07 30.01.07 29.07 28. Brazil FSO Abu Contract awarded to MISC 4th quarter results for FY2006/07 05.06 31.06 29.07.06.02.07 30.04.07 31.06 31.06 30.11.05.06 2nd quarter results for FY2006/07 Order confirmation of two Aframax tanker newbuildings 3rd quarter results for FY2006/07 Joint Venture Agreement between MISC and SBM Holding Inc SA – BC10 Project.06 31.07 0 10.06 0 31.08.06 31.12.07 0 02.08.11.09.06 31.09.06.06 31.06 30 9 20 6 09.07 0 31.10.share performance 021 Date 18.06 28.08.06 28.06 31.07 40 6 20 3 25.10.07.06.03.02.07.03.04.06 31.07 29.06 29.06 31.06 Announcement Joint Venture Agreement between MILS and Rais Hassan Saadi L.01.12.06.03.07 30.05.04.06 15.08.
financial calendar 022 Financial Calendar 2006 Aug Nov Feb 2007 May Quarterly Results Quarter 1 Results 14 23 Quarter 2 Results 23 22 Quarter 3 Results 28 10 Quarter 4 Results 10 30 Nov Dec May Aug Dividends Interim Announced Interim Paid Final Announced Final Payable Jul Annual Report Annual Report Issued 25 Aug Annual General Meeting AGM 16 .
Wan Abdul Aziz bin Wan Abdullah) Company Secretary Fina Norhizah binti Hj Baharu Zaman Audit Committee Members Dato' Halipah binti Esa *(Chairman) Dato Sri Liang Kim Bang * Harry K Menon * Dato' Kalsom binti Abd Rahman* * Independent Non-Executive Director Corporate Information Registered Office Level 25. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : +603 2273 8088 Fax : +603 2273 6602 Telex : Naline MA 30325 MA 32449 Cable : MALAYASHIP KUALA LUMPUR Web : www.corporate information 023 Board of Directors Chairman Tan Sri Dato Sri Mohd Hassan bin Marican President/ Chief Executive Officer Dato' Shamsul Azhar bin Abbas Directors Dato Sri Liang Kim Bang Harry K Menon Dato' Halipah binti Esa Datuk Nasarudin bin Md Idris Dato' Kalsom binti Abd Rahman Dato' Dr.com. Jalan Munshi Abdullah 50100 Kuala Lumpur Tel : +603 2721 2222 Fax : +603 2721 2531 Stock Exchange Listing The Main Board of Bursa Malaysia Securities Berhad .my Auditors Ernst & Young Level 23A.misc. Wan Abdul Aziz bin Wan Abdullah * Dato' Ibrahim Mahaludin bin Puteh (alternate Director to Dato’ Dr. Menara Multi Purpose Capital Square No 8. Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur Principal Bankers CIMB Bank Berhad Malayan Banking Berhad Hongkong Bank Malaysia Berhad Share Registrars Symphony Share Registrars Sdn Bhd Level 26.
A Fellow of the Institute of Chartered Accountants in England and Wales. which oversees petroleum development in the overlapping area between Malaysia and Thailand. a subsidiary of PETRONAS. as well as a member of the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants. another public listed subsidiary of PETRONAS.directors' profile 024 Chairman Tan Sri Dato Sri Mohd Hassan bin Marican aged 54. South Africa's leading oil refining and marketing company. He is also a member of the International Investment Council for the Republic of South Africa. and apart from MISC Berhad. he is also the Chairman of PETRONAS Gas Berhad. is the President and Chief Executive Officer of Petroliam Nasional Berhad (PETRONAS). Directors’ Profile . Beyond PETRONAS. Tan Sri Dato Sri Mohd Hassan is a member of the PETRONAS Board of Directors. and Chairman of Engen Limited. He joined PETRONAS in 1989 as Senior Vice President of Finance and was appointed as President and Chief Executive Officer in February 1995. Tan Sri Dato Sri Mohd Hassan is a Board member of Bank Negara Malaysia and a member of the Board of Malaysia-Thailand Joint Authority.
Vice President Oil Business. AET Tanker Holdings Sdn Bhd. is an Independent NonExecutive Director of MISC Berhad since 1972. Vice President Petrochemical Business.) in Energy Management from University of Pennsylvania. He was also the former Sarawak State Financial Secretary. Rashid Hussain Berhad. He was appointed as the Managing Director/Chief Executive Officer of MISC Berhad on 1 July 2004 and is currently a member of the PETRONAS Management Committee.A. Malaysia Marine and Heavy Engineering Sdn Bhd. PPB Oil Palms Berhad. PPB Group Berhad. Vice President Exploration and Production Business and Vice President Logistics & Maritime Business.directors' profile 025 Dato' Shamsul Azhar bin Abbas aged 55. He is the Non-Executive Chairman of CMS Cement Sdn Bhd.A. England. He is also the Chairman of PETRONAS Maritime Services Sdn Bhd. 1957-1961 graduating with B. Dato' Shamsul Azhar bin Abbas holds a degree in Political Science from Science University of Malaysia. USA and a Technical Diploma in Petroleum Economics from Institute Francaise du Petrole (IFP). He studied at University of Malaya. (Hons) degrees and at University of Cambridge (Trinity College). Singapore. CMS Wires Sdn Bhd and CMS Infra Trading Sdn Bhd. NCB Holdings Bhd and The London Steamship Owners' Mutual Insurance Association Limited (London P & I Club) and Council Member of American Bureau of Shipping (ABS) and Bureau Veritas. and B. 1962-1963 in Public Administration. . a Masters of Science Degree (MSc. He is also a Non-Executive Director of Cahya Mata Sarawak Berhad. He joined PETRONAS in 1975 and has held various senior management positions including Senior General Manager Corporate Planning and Development Division. President / Chief Executive Officer Dato Sri Liang Kim Bang aged 70. He is also a member of the MISC Board Audit Committee. He sits on the Board of MISC and is the Chairman on the Boards of MISC's major subsidiaries. France. CMS Trust Management Berhad and Utama Banking Group Berhad. MISC Integrated Logistics Sdn Bhd and a Director on the Boards of Bintulu Port Holdings Berhad. is the President / Chief Executive Officer of MISC Berhad.
She graduated from University of Malaya with an honours degree majoring in Economics and later was conferred the Masters of Economics degree from the same University. a wholly owned subsidiary of PETRONAS involved in property development & investment holding. as well as a member of the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants. Marketing. AKN Messaging Technologies Berhad and SCICOM (MSC) Berhad as well as a Director of Putrajaya Holdings Sdn Bhd. Cagamas SME Berhad and KLCC Property Holdings Berhad. is a Non-Executive Director of MISC Berhad since 2004. He is also a member of the MISC Board Audit Committee. As of April 2007. is an Independent NonExecutive Director of MISC Berhad since 2001. Dato' Halipah binti Esa aged 57. He graduated from University of Malaya with a Bachelor of Arts (Honours) in 1978. Prime Minister’s Department in 2005 before retiring in 2006. is an Independent NonExecutive Director of MISC Berhad since 2004. PETRONAS Dagangan Berhad. He serves on the Board of Directors of PETRONAS and various other subsidiaries within the PETRONAS Group. After working with two public listed companies. Corporate Planning and Development. He joined Public Bank Berhad as General Manager and was subsequently promoted to Executive Vice-President. and joined PETRONAS in the same year. Datuk Nasarudin bin Md Idris aged 52. He is a Fellow of the Institute of Chartered Accountants in England and Wales. She was Deputy Secretary General (Policy) in the Ministry of Finance from 2004-2005 and subsequently became Director General. She started her career with the Administrative and Diplomatic Services in 1973 as an Assistant Secretary in the Economic Planning Unit (EPU) in the Prime Minister's Department and subsequently held various other positions in the EPU and became the Deputy Director General Macro (1999-2004). 7 years of which as a Partner. Economic Planning Unit. he has held various senior management positions within the PETRONAS Group.directors' profile 026 Harry K Menon aged 57. and is a member of the Management Committee of PETRONAS. Executive Assistant to the President. He is presently an Executive Director of AWC Facility Solutions Berhad. United Kingdom and a postgraduate diploma in Petroleum Economics from College of Petroleum Studies. He also holds a Master of Business Administration degree from Henley-The Management College. He is currently the Vice President of Corporate Planning and Development Division. Group Strategic Planning. General Manager. Chairman of Putrajaya Perdana Berhad and is a Non-Executive Director of SPK-Sentosa Corporation Berhad. She was recently appointed as Chairman of the MISC Board Audit Committee. Currently she is the Chairman of Pengurusan Aset Air Bhd and sits on the Boards of UDA Holdings Berhad. General Manager. . Datuk Nasarudin was appointed Group Chief Executive Officer of KLCC (Holdings) Sdn Bhd. Corporate Development Unit and General Manager. He spent 13 years in public practice at Hanafiah Raslan & Mohamed. Since joining PETRONAS. including as the Senior General Manager. he joined Putrajaya Holdings Sdn Bhd as its Chief Operating Officer from 1997 – 2000. United Kingdom.
Bank Simpanan Nasional. is an Independent NonExecutive Director of MISC Berhad since 2004. Hyumal Motor Sdn Bhd. United Kingdom and Bachelor in Economics (Honours) in Applied Economics from University of Malaya. She sits on the Boards of Malaysian Industrial Development Finance Berhad (MIDF Berhad).D in Economics from University of Leeds. is an Independent NonExecutive Director of MISC Berhad since 2006. Multimedia Development Corporation. He also sits on several other Boards. Chemical Company of Malaysia (CCM Berhad). MIDF Amanah Asset Management Berhad (formerly known as Amanah SSCM Asset Management Berhad). He is currently the Secretary General of Treasury in the Ministry of Finance. TH Technologies Sdn Bhd and TH Indopalms Sdn Bhd. and Young Entrepreneurs Sdn. He has served in various divisions at the Ministry of Finance since 1974 and has extensive experience in banking and finance. He began his career in 1975 with the Malaysian Administrative and Diplomatic Service in the Economic Planning Unit (EPU). Bhd. PETRONAS. He holds a Ph. United Kingdom. . He was the Deputy Secretary of Economics and International Division. Bank Negara Malaysia. She had served in various capacities in the Ministry of International Trade and Industry (MITI) both at Headquarters and Overseas offices. EPU and subsequently the Deputy Secretary General of Treasury (Policy). Inland Revenue Board. Ministry of Finance in 2005. He holds a Bachelor of Arts (Honours) from University of Malaya and Master of Business Administration Degree from University of Manchester. Malaysia Airlines System Berhad (MAS). USA. Currently. He is presently the Deputy Secretary General (Policy) in the Ministry of Finance.directors' profile 027 Dato’ Kalsom binti Abd Rahman aged 58. Prime Minister's Department as an Assistant Director and subsequently held various other positions in EPU. was appointed as the Alternate Director to Dato' Dr. Cyberview Sdn Bhd. including the Board of Federal Land Development Authority (FELDA). Lion Forest Industries Berhad (LFIB Berhad). Dato’ Ibrahim Mahaludin bin Puteh aged 55. a Masters in Philosophy in Development Studies from Institute of Development Studies. United Kingdom. Ministry of Finance (2001) and later became the Deputy Director General (Macro).C. Inokom Corporation Sdn Bhd. the last post being the Deputy Secretary General (Industry). Wan Abdul Aziz bin Wan Abdullah on 10 May 2007. ASEAN Bintulu Fertilizer Sdn Bhd. Kuala Lumpur International Airport Berhad. and a member of the Consultative Committee of the Group Motor Division of the Sime Darby Berhad. she is the Chairman of the Executive Committee of Invest-In-Penang Berhad. He had also served as Senior Adviser to the Executive Director for Southeast Asia at the World Bank Group in Washington D. Wan Abdul Aziz Wan Abdullah aged 55. Amanah International Finance Sdn Bhd. She holds a Bachelor of Economics (Honours) degree from University of Malaya and a Master in Business Administration (Finance) from University of Oregon. SME Bank. Kumpulan Wang Amanah Persaraan (KWAP). Dato' Dr. He sits on the Boards of Syarikat Prasarana Negara Berhad. University of Sussex. Syarikat Bekalan Air Selangor Sdn Bhd and Pembinaan PFI Sdn Bhd.
Petroleum Business. He serves on various Boards of MISC's subsidiaries.senior management 028 Senior Management Dato' Shamsul Azhar bin Abbas is the President / Chief Executive Officer of MISC Berhad. He is a member of the Malaysian Institute of Certified Engineer and has attended INSEAD Senior Management Development Program. He joined PETRONAS in 1975 and has held various senior management positions including Senior General Manager Corporate Planning and Development Division. FPSO Senior Project Manager and General Manager Offshore Business. ship operation and project management. NCB Holdings Bhd and The London Steamship Owners' Mutual Insurance Association Limited (London P & I Club) and Council Member of American Bureau of Shipping (ABS) and Bureau Veritas. Dato’ Shamsul Azhar bin Abbas. He graduated with an MBA from the University of Bath. Offshore Business. He has also served more than 10 years on overseas assignment with PETRONAS including heading the LNG fleet operations and technical liaison office in Japan.) in Energy Management from University of Pennsylvania. He was appointed as the Managing Director/Chief Executive Officer of MISC Berhad on 1 July 2004 and currently a member of the PETRONAS Management Committee. He has also completed the Qualifying Examination of the Institute of Chartered Shipbrokers. He has served in various capacities in PETRONAS and MISC including Senior Manager LNG & Tanker Fleet Operations. London. Tanker Business. Malaysia Marine and Heavy Engineering Sdn Bhd. He sits on the Board of MISC and is the Chairman on the Boards of MISC's major subsidiaries. Dato' Shamsul Azhar bin Abbas holds a degree in Political Science from Science University of Malaysia. LNG Business. U. Zahar Mohd Hashim bin Zainuddin Gunaseharan A/L K Ganapathy is the Vice President. He was appointed as Vice President of the LNG Business on 1 April 2005. MISC Integrated Logistics Sdn Bhd and a Director on the Boards of Bintulu Port Holdings Berhad. USA and a Technical Diploma in Petroleum Economics from Institute Francaise du Petrole (IFP). he took up the post of Project Manager of Petroleum Services and in 2000. He is also Chairman of the Technical Committee for the Malaysian Shipowners’ Association.K. He is a certified Marine Engineer graduated from South Shields Marine & Technical College in the United Kingdom. Three years later. Vice President Exploration and Production Business and Vice President Logistics & Maritime Business. Zahar Mohd Hashim bin Zainuddin is the Vice President. Vice President Oil Business. from left to right : Gunaseharan A/L Ganapathy. He is also the Chairman of PETRONAS Maritime Services Sdn Bhd. he was appointed as General Manager. he was assigned the additional responsibility of managing the Corporation's Chemical Business and was subsequently redesignated as General Manager. In 2002. a Masters of Science Degree (MSc. He joined MISC's shore services in 1992 and was attached to the Petroleum Services. He has over 25 years of experience in shipbuilding. . Vice President Petrochemical Business. AET Tanker Holdings Sdn Bhd. He currently sits as a board member for a few of MISC subsidiaries and joint venture companies. France.
. Prior to joining MISC in April 2001 as General Manager of MISC Trucking & Warehousing Sdn Bhd. He is educated in Maritime Law in Denmark. International Chamber of Commerce. and has attended executive training at University of Wisconsin. the parent company of Maersk. Internal Audit. Pacific Basin Economic Council and served on the advisory council for Hong Kong University. He also serves on various Boards of associated companies and committees within the Group. Niels Kim Balling Niels Kim Balling is the Vice President. Contract Management. MBA faculty. He has held various senior management positions in the development and operation of refining and petchem ventures including MTBE (M) Sdn Bhd. he was seconded by PETRONAS to MMHE in May 2004 after serving PETRONAS Oil and Petrochemical businesses for 27 years. Treasury and Project Management. with multi roles and experience ranging from Project Evaluation. Liner Business. PETRONAS Penapisan (Terengganu) Sdn Bhd. within the energy. Moller. Kim was also active within the Council of Logistics Management USA. a management consulting practice serving amongst others Fortune 50 companies and Government linked companies in Asia. United Kingdom. Vendor Development. transport and aerospace sectors. Wan Yusoff bin Wan Hamat. PETRONAS Penapisan (Melaka) Sdn Bhd and Aromatics Malaysia Sdn Bhd. a wholly-owned subsidiary of MISC Berhad. he was with the PETRONAS Group for more than 20 years.P. retail. Massachusetts Institute of Technology and Stanford-NUS in Singapore. Wan Yusoff bin Wan Hamat is the Managing Director/Chief Executive Officer of Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE). he assumed the position of Managing Director and Chief Executive Officer of PETRONAS Penapisan (Terengganu) Sdn Bhd.senior management 029 from left to right : Hilmi bin Mohd Nashir. In 1999 and thereafter. Prior to joining MISC in 2004 he was the Managing Director of Econships Ltd. In April 2002. he was also project leader for the Government study on developing Hong Kong's maritime cluster. Prior to joining MISC in April 2005. Prior to this Kim worked for a number of years with Orient Overseas Container Line and A. he became the Chief Operating Officer of MISC Haulage Services Sdn Bhd before being appointed to his current position in April 2005. Hilmi bin Mohd Nashir is the Managing Director/Chief Executive Officer of MISC Integrated Logistics Sdn Bhd (MILS). He graduated with an Honours Degree in Engineering Production from Birmingham University. He graduated with an honours degree in Economics majoring in Analytical Economics from the University of Malaya. During his time with Econships Ltd. He is also a member of the World Shipping Council and the International Council of Container Operators.
he started and managed his own Corporate. Management and Financial Advisory Practice for two and half years before joining MISC. a subsidiary of NOL. Prior to the appointment as the Vice President.senior management 030 Senior Management from left to right : Hor Weng Yew. Subsequent to that. Corporate Planning and Development on 1 April 2005. He completed his Bachelor of Arts in Economics from the National University of Singapore and obtained his MSc in Shipping. he served the Arthur Andersen / HRM Business Consulting Division for around 9 years as Senior Consulting Manager before leaving to join the Phileo Allied Group to head its Corporate Finance Business Unit as General Manager / Executive Director for over 8 years. Prior to his current position on 1 September 2006. since its inception in 1994. she was the General Manager of the same division. She sits on the boards of Labuan Reinsurance (L) Ltd and various MISC subsidiaries and investment companies. Finance on 1 April 2005. Trade & Finance (Distinction) from the City University Business School. following the acquisition of AET by MISC. he was The Director of the Regional Business Directorate since June 2005. She is a member of the Malaysian Institute of Accountants and Malaysian Institute of Certified Public Accountants. he was the General Manager of the same division. Finance. Prior to joining MISC. London. He joined the MISC Group in July 2003. She graduated from University of Manchester with an honours degree in Economics. Prior to his appointment as the Vice President. Corporate Planning and Development. He began his career with Neptune Orient Lines Limited (NOL) in 1989 and was involved in the strategy and business planning initiatives for AET. Michael Ting Sii Ching Michael Ting Sii Ching is the Vice President. Prior to joining MISC. Noraini binti Che Dan. Hor Weng Yew is the Senior General Manager. He was later seconded to London to set up the MISC Regional Office. Chemical Business. she served in Pernas International Holdings Berhad for 15 years in various capacities including Group General Manager Finance and Chief Financial Officer. Noraini binti Che Dan is the Vice President. . He graduated with a Bachelor of Business Administration degree (majoring in Accounting and Management Information System) from Simon Fraser University. He serves on the Boards of various subsidiaries of MISC Berhad and also sits on the Boards of TH Group Berhad and CB Industrial Product Holding Berhad. Canada.
She joined PETRONAS in 1990 and had served the PETRONAS Legal Department in several capacities. He is a Director of The Britannia Steamship Insurance Association Limited and various subsidiaries of MISC Berhad. sales and marketing. he was with Malaysia Marine and Heavy Engineering Sdn Bhd and was involved in project management of various new shipbuilding and offshore structures fabrication works. Malaysia in 1984 as a law lecturer. Prior to joining PETRONAS. Malaysia. He was made Chief Executive Officer of Gas District Cooling (Holdings) Sdn Bhd from January 2000 to May 2005 before assuming his current position on 1 June 2005. She did her Masters in Law (specialising in maritime and shipping) at the London School of Economics. Fleet Management Services on 1 April 2005. In 2000. is the Vice President. He is also the Chairman of the Malaysian Shipowners' Association. United Kingdom and a Certificate of Legal Practice from the University of Malaya. Fina Norhizah binti Hj Baharu Zaman is the Senior General Manager of Legal & Corporate Secretarial Affairs Division and the Company Secretary of MISC Berhad. . Fleet Management Services. University of London and had subsequently joined the International Islamic University. He joined PETRONAS in January 1980 and has held various positions in company secretarial and legal services area relating to exploration and production. He holds a Degree in Law from the University of London. She was admitted as an Advocate and Solicitor of the High Court of Malaya in 1986. Scotland with a degree in Naval Architecture & Ocean Engineering and is a registered Professional Engineer with the Board of Engineers. He graduated from University of Glasgow. manufacturing. he was the Senior General Manager of the same division. He currently sits as committee member of various classification societies and international shipping organisations. He was the Company Secretary and General Manager. Ahmad Hafifi bin Ibrahim She obtained her Bachelor of Law degree from the University of Malaya in 1980 and had started her legal career with the Malaysian Attorney General Chambers where she had served as a Senior Federal Counsel and as the Legal Advisor to the Ministry of Transport. Human Resources Management. He joined PETRONAS in 1989 and has served in various capacities in PETRONAS Carigali Sdn Bhd and PETRONAS Tankers Sdn Bhd before joining MISC in 2001. Fina Norhizah binti Hj Baharu Zaman.senior management 031 from left to right : Nordin bin Mat Yusoff. Commercial Division for PETRONAS Gas Berhad from 1995 to 1999. she was appointed as the General Manager (Legal) of the Logistics and Maritime Business PETRONAS and as General Manager of the Legal and Corporate Secretarial Affairs Division of MISC. Prior to his appointment as Vice President. Ahmad Hafifi bin Ibrahim Nordin bin Mat Yusoff is the Vice President. property and project management.
We want to be a global champion in energy transportation and logistics services and our strategic plans will lead us to greater heights of excellence.Nothing is too hard a pursuit. As Strategists who want to increase our scope and venture into greater profitable channels. too impossible a quest. We have made promises over the years. . Promises that we continue to keep. we aim to reach that complete goal.
034 Chairman’s Statement .
The long term LNG shipping contracts continue to provide an effective cover for the MISC group against volatility of the freight market which was prevalent during the year.9 million during the review period. tax exempt. marginally higher than RM2.37 times. These core pillars are supported by continuous human resource development emphasising on building leadership and capabilities.2% from RM10. Group profit before tax including exceptional gain was RM2. capability driven heavy engineering services and ASEAN centric logistics services. Dividend The Board of Directors is recommending a final dividend of 20 sen per share.198. The year also saw enhanced returns from the heavy engineering business with the completion of major deepwater projects and increased demand for high value marine repair services. I am pleased to present the Annual Report of MISC Berhad (MISC) for the financial year ended 31 March 2007.930. MISC nevertheless was able to rise to the challenge to deliver a satisfactory financial and operational performance through strong business partnerships.36 times to 0.chairman’s statement 035 Earnings per share improved from 75.73. tax exempt.7 sen while Net Tangible Assets per share increased from RM4. Financial Performance Against this backdrop. an increase of 4. Together with the interim dividend of 10 sen per share. asset growth and focused capability building initiatives. declared and paid in December 2006. The year under review saw MISC operating in a challenging market environment characterised by softer freight rates across most sectors due to overcapacity of tonnage and higher operating cost as a result of persistently high bunker prices.747. MISC Group generated a higher revenue of RM11.3 million.8 million before.1 million recorded in the previous period.60 to RM4. Corporate Development MISC continue to anchor its vision of becoming "the preferred provider of world-class maritime transportation and logistics services" on its three core pillars of global energy shipping. . The long term LNG shipping contracts continue to provide an effective cover for the MISC Group against the volatility of the freight market which was prevalent during the year. On Behalf of the Board of Directors.9 sen to 76.900. Debt to Equity ratio increased marginally from 0. tax exempt. the total dividend for the financial year will be 30 sen per share.
bringing its LNG fleet size to 23 tankers. The Group’s chemical shipping business will take delivery of eight new 38. Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) successfully completed and delivered FPSO Kikeh. Storage and Offloading (FPSO) facility to be built in Malaysia. the liner business continues to be impacted by softer freight rates due to substantial capacity growth of larger TEU vessels and higher operating costs. the first deepwater Floating Production. increasing its VLCC fleet to nine tankers. The Group will maintain its capacity-led growth strategy in its targeted energy logistics and transportation markets and the delivery of another six LNG tankers between 2007 and 2009 will further . MMHE also completed and delivered two Floating Storage and Offloading (FSO) facilities namely FSO Cendor and FSO Abu. the present global excess of vessel capacity is expected to persist.chairman’s statement 036 During the year. In addition to FPSO Kikeh. AET continue to grow its fleet size by chartering-in four Aframax class tankers and took delivery of two Very Large Crude Carrier (VLCC). while leveraging on strategic partnerships for business growth opportunities.5 per cent in 2007 and 2008 amidst concerns over persistently high commodity prices and rising inflationary pressures. The downturn also affected MISC Integrated Logistics Sdn Bhd (MILS) amidst its ongoing effort to restructure its haulage business and to enhance its capabilities to strengthen its service offerings.000 DWT chemical tankers by 2010. the global economy is expected to grow at a slower rate of about 4. MISC will continue to enhance its capabilities and improve its cost structures to meet the challenges ahead. MISC took delivery of two new LNG tankers. a deepwater FPSO currently in operation in Brazil and acquired a 49% interest in FPSO Espirito Santo. Even with improved global trade volume. The year also saw MISC securing a new medium term LNG shipping contract with BG Group and extended a contract with Gaz de France (GdF). The completion of the facility stands as a testimony to the success of MMHE in building capability in the engineering and construction of deepwater facilities. another deepwater FPSO. The downcycle of the global liner shipping business persisted during the financial year. exerting downward pressure on freight rates. The Offshore Business Unit completed the acquisition of 49% interest in FPSO Brasil. Against this background. a capability previously not available in Malaysia. Future Outlook After a strong growth of over 5 per cent in 2006. to be delivered in 2008. MMHE also embarked on its yard optimization project aimed at increasing capacity and efficiency to undertake more deepwater works.
Finally. I would like to express my gratitude for their wise counsel in charting the Group’s direction to ensure our continued growth and success. In meeting the challenges ahead. my sincere gratitude goes to the employees of the MISC Group for their loyalty. This effort will be complemented by the Group’s education and training academy. clients. Tan Sri Dato Sri Mohd Hassan bin Marican Chairman . MISC will continue to focus on human capital development to drive and sustain competitive edge in achieving its business objectives. affiliates and partners for their continued support and confidence in MISC. softer freight rates and escalating operating costs. It will also strengthen its presence in the product tanker business segment to capitalise on the increasing demand for transportation of Clean Petroleum Products (CPP).000 DWT chemical tankers by 2010 and will continue building economies of scale through newbuilds or in-charter programs to achieve global reach trading capabilities in Asia. the nation and the industry through strategic alliances with world class I would like to take this opportunity to thank Tan Sri Dato’ Seri Dr Hj Zainul Ariff Hj Hussain. The Group expects to see further growth of its energy business with anticipated higher contribution from the offshore and heavy engineering sectors on the back of positive market prospects for offshore exploration and production activities. To my other fellow Board members. I would also like to welcome Dato’ Dr. There will be greater emphasis on building the required capabilities and competencies as well as to develop technical. business and leadership skills. Appreciation I would like to thank our shareholders. Moving forward. dedication and contributions. Wan Abdul Aziz Wan Abdullah. strengthen the Group’s global LNG shipping position. Akademi Laut Malaysia (ALAM). The liner business is expected to continue facing a difficult year against excess tonnage. MISC is confident of sustaining business growth and moving closer towards achieving its vision. AET will continue to grow its fleet through strategic partnerships. for his invaluable service as an Independent Director for the past seven years. The chemical shipping market is expected to remain promising driven by higher demand for sophisticated chemical tankers and the growing position of the Middle East as a petrochemical producer and exporter. The Group’s chemical shipping business will take delivery of eight new 38. that will continue to enhance its role to develop highly qualified and competent maritime and shipping personnel for the Group.chairman’s statement 037 international as well as domestic maritime and academic institutions. AET will continue to expand its capacity with the contracted delivery of eight Aframaxes and two VLCCs. Europe and the Americas. who was appointed as a new Board member in September 2006. Liner business will continue to focus on improving its cost efficiencies and strengthening its yield management activities. My appreciation also goes to the Government of Malaysia and various regulatory bodies for their support and assistance. joint ventures and in-charter arrangements in response to the high asset price environment. With the business expansion and improvement initiatives in place supported by appropriate human resource strategies. especially in the deepwater sector.
The Group recognises the vital role played by the Board in the stewardship of its direction and operations. and ultimately the enhancement of long term shareholders' value. acquisitions and divestment policies. THE BOARD An experienced and dedicated Board consisting of members with a wide range of financial. as well as human capital policies including succession planning for top management. The Directors bring depth and diversity in their expertise to the leadership of the challenging and highly competitive maritime and integrated logistics business. approval of major capital expenditure projects. The Board fully supports the principles of Corporate Governance in the Malaysian Code of Corporate Governance (the Code) and strives to adopt the substance behind corporate governance prescriptions. . The Board reserves material matters to itself for decision. business and public service backgrounds leads and controls the Group effectively. which includes the overall Group strategies and directions. plans and budgets and significant financial matters.statement on corporate governance 038 Statement on Corporate Governance The Board of Directors (the Board) of MISC Berhad is committed to ensuring that the highest standards of corporate governance are applied throughout the Group. The Board is pleased to disclose the Group’s application of the Principles as set out in Part 1 of the Code.
strategic. operational. More than one third of the Board are independent Directors. iii The five Non-Executive Directors are independent of management and free from any business or other relationships that could materially interfere with the exercise of their independent judgement. The Chairman is primarily responsible for the orderly conduct and working of the Board whilst the President/ Chief Executive Officer is responsible for the overall operations of the business organisational effectiveness and the implementation of the Board's strategies and policies. seven meetings of the Board were held. which is in compliance with the Listing Requirements of Bursa Malaysia Securities Berhad. The President/Chief Executive Officer is assisted by the Management Committee in managing the business on a day to day basis. A brief profile of each Director is presented on pages 24 to 27 of this Annual Report. . b. Wan Abdul Aziz bin Wan Abdullah (appointed on the Board on 14 September 2006) Board Meetings Maximum Meetings Possible to Attended Attend 7 7 7 7 5 6 5 7 7 7 7 7 7 7 2 4 The agenda and a full set of Board papers for consideration are distributed well before meetings of the Board to ensure that Directors have sufficient time to read and be properly prepared for discussion at the meetings. Details of the attendance are as follows: Board of Directors Tan Sri Dato Sri Mohd Hassan bin Marican Dato’ Shamsul Azhar bin Abbas Dato Sri Liang Kim Bang Harry K Menon Dato Halipah binti Esa Datuk Nasarudin bin Md Idris Dato’ Kalsom binti Abd Rahman Dato’ Dr. as well as the shareholders. The Directors have unhindered access to the advice and services of the Company Secretary who is responsible for ensuring that Board meeting procedures are followed and that applicable rules and regulations are complied with. Board Composition i The Board has a balanced composition of executive and non-executive Directors. ii There is a clear division of responsibilities between the roles of the Chairman and the President/Chief Executive Officer to ensure a balance of power and authority. whilst the President/Chief Executive Officer is an Executive Director. They have the calibre to ensure that the strategies proposed by the Management are fully deliberated and examined in the long term interest of the Group. Board Meetings Board meetings are scheduled in advance at the beginning of the new financial year to enable Directors to plan ahead and fit the year’s meetings into their own schedules. During the 12 months ended 31 March 2007. Minutes of the Board meetings which include a record of the decisions and resolutions of the Board meetings are properly maintained by the Company Secretary. Additional meetings are held as and when required. The Chairman is a Non-Executive Director. Comprehensive and balanced financial and non financial information are encapsulated in the papers covering amongst others. employees and customers. regulatory. marketing and human resource issues.statement on corporate governance 039 a. The Board comprises eight Directors. The Board meets at least six times a year. Five of the remaining six Directors are Independent Non-Executive Directors.
appointing and orienting suitable candidates who can contribute effectively to the growth of the Corporation. The committee decides on the remuneration policy and terms of conditions of service for the Group as well as the remuneration of members of the Management Committee and members of the Board. The Audit Committee met four times during the financial year. During the financial year. the General Manager of Ship Management Audit were in attendance at all the meetings. Matters concerning the remuneration of senior management staff of the company are considered by the Management Development Committee. the Vice President Finance. e. Directors who are appointed by the Board shall hold office until the next Annual General Meeting of the Corporation and shall then retire and be eligible for reelection by the shareholders. seminars. The External Auditor. Directors are encouraged to attend continuous education programme. All members of the Board participate in assessing. conferences and . The composition and Terms of Reference of the Audit Committee are also provided on pages 46 to 47 of this Report. Any Board member who has interest in any matter raised by the Committee abstains himself from the deliberations and voting. Directors' Training All Directors have attended the Mandatory Accreditation Programme (MAP) in compliance with the Listing Requirements of Bursa Malaysia Securities Berhad. nominating. Appointment and Re-election of Directors In accordance with the provision of the Corporation's Articles of Association require that at least one third of the Directors shall retire from office at least once every three years but shall be eligible for re-election. Audit Committee The Audit Committee consists of four Independent NonExecutive Directors with Dato’ Halipah binti Esa as Chairman. Nomination Committee Since the composition of the Board of Directors comprised mainly of Non-Executive Directors. the Board had for the past years assumed and functioned as a Nomination Committee. The Directors do not participate in the deliberations and voting on decisions in respect of their own remuneration packages. the full Board had for the past years assumed and functioned as a Remuneration Committee. other training programmes to enhance their skill and knowledge and to ensure Directors are kept abreast with new developments in the business environment. This Committee is empowered to bring to the Board its recommendations on the appointment of new Executive and Non-Executive Directors and the re-election of Directors who retire by rotation in accordance with the Corporation’s Articles of Association. recruiting. ACCOUNTABILITY AND AUDIT a. workshops. f. all the Directors have attended the relevant training programs to further enhance their knowledge to enable them to discharge their duties and responsibilities more effectively. talks.statement on corporate governance 040 c. d. The effectiveness of the Board as a whole and the contribution of each Director are also assessed. In effect MISC has a Remuneration Committee at two levels. the General Manager of Internal Audit. The Committee also ensures that the Board has an appropriate balance of expertise and abilities. identifying. Remuneration Committee Since the composition of the Board of Directors comprised mainly of Non-Executive Directors.
000. who possessed the stipulated accountancy qualification.statement on corporate governance 041 Details of attendance are provided below: Audit Committee Attendance Record (1 April 2006 – 31 March 2007) Members Dato' Halipah binti Isa Dato Sri Liang Kim Bang Harry K Menon Dato' Kalsom binti Abd Rahman (appointed on the BAC on 28 February 2007) Meetings Attended 3 4 4 1 Maximum Possible to Attend 4 4 4 1 Harry K Menon.000. the Audit Committee also acts as a forum for discussion on internal control issues and contributes to the Board's review of the effectiveness of the Company's internal control and risk management system.00 and RM36. the Board Audit Committee meetings are held on the same day as the Board of Directors meetings. Internal Control Information on the Group's internal control is presented in the Statement on Internal Control set out on pages 42 to 45 of this Report. In addition to the duties and responsibilities set out in the Terms of Reference. In addition. was appointed as a member of the Audit Committee on 13 November 2001. The Audit Committee meets the external auditors to discuss the annual financial statements and their audit findings. Relationship with External Auditors The Board ensures that there are formal and transparent arrangements for the maintenance of an objective and professional relationship with the external auditors. To manage confidentiality issues. for every meeting attended. c. a meeting allowance of RM400 is paid to each Director. d. Directors’ Remuneration Currently.00 are being paid to the Chairman and all Non-Executive Directors respectively. The Audit Committee also conducts a review of the internal audit functions and ensures that no restrictions are placed on the scope of statutory audits and on the independence of the internal audit functions. b. The minutes of the Board Audit Committee are formally tabled to the Board for noting and action. the annual fees of RM60. . where necessary.
the Board has defined the risk management framework to identify the key risk areas. namely Maritime Risk. to achieve business objectives. evaluate the impact and set broad The Board has endorsed the establishment of a Risk Advisory Group (RAG) and identified that MISC is exposed to four (4) major risk categories. these internal controls systems can only provide reasonable and not absolute assurance against material misstatement or loss or the occurrence of unforeseeable circumstances. risk committee/councils were formed to manage each risk category and be accountable to the RAG on any issues and developments pertaining to the respective risk areas. Country Risk and Finance Risk.internal control statement 042 Internal Control Statement The Malaysian Code on Corporate Governance requires the Board of Directors (Board) of public listed companies to maintain a sound system of internal control to safeguard shareholders' investment and the Group's assets. This includes reviewing the strategic direction. This is then delegated to the Management to implement the Board’s direction and policies on risk and control. Accountability of the Board Risk Management Framework The Board of MISC acknowledges its overall responsibility for the Group's system of internal control and its effectiveness to safeguard the shareholders' investment and the Group's assets. financial. It should be noted that the system of internal control is designed to manage and control risks appropriately rather than eliminating the risk of failure. The process is regularly reviewed by the Board and is in accordance with the guidance as contained in the publication – Statement on Internal Control : Guidance for Directors of Public Listed Companies. The Board of MISC Berhad (MISC) is committed to continuously improve the Group’s system of internal control and is pleased to provide the following statement. Credit Risk. assessed and reviewed regularly as reflected below: . operational and compliance controls and the risk management policies and procedures. Bursa Malaysia Listing Requirements. evaluating and managing the significant risks faced by the Group. of which details are set-out in the following pages. Paragraph 15. Accordingly. strategic policies relating to the risks and the relevant controls thereof. which has been in place for the financial year under review.27(b) requires the Board to make a statement about the state of internal control of the listed entity as a Group. In discharging its stewardship responsibilities. employees and all related stakeholders. A proper risk management structure and reporting framework has been established to ensure risks are being monitored. The Board confirms that there is a continuous process for identifying. The Board defines risk parameters and standards guided by the corporate objective to maximise long term shareholders' value whilst meeting the needs of the customers. Simultaneously.
The credit & trading risk framework and guidelines have been developed to ensure all matters relating to credit & trading risk are being addressed accordingly. The Group also leverages on PETRONAS Group resources via the Finance Risk Council (FRC) when addressing/assessing financial risks. The framework and guidelines would facilitate a structured and consistent approach in managing country risks. The Group has financial risk guidelines for managing the Group's foreign exchange. the Risk Management Committee also coordinates group-wide risk management in terms of building risk management awareness and capabilities. The MCC formulates its credit & trading risk based on the credit & trading operational guideline issued by the PETRONAS Group’s Credit & Trading Risk Council (CTRC). The MISC Credit Committee (MCC) regularly reviews the credit risk and advises on appropriate measures to improve existing credit control procedures and practices and the quality of Trade Accounts Receivables. develops and recommends risk management strategies and policies for the PETRONAS Group. which defines. In addition. It also fosters coordination of the Group Finance risk management practices and approaches in accordance with established policies and guidelines. monitoring the risk exposures and planning responses to potential major risk events. President /CEO Management Committee (MC) Maritime Risk Council (MRC) Risk Advisory Group (RAG) MISC Credit Committee (MCC) Country Risk Council (CRC)* Finance Risk Council (FRC)* Note *: represented at PETRONAS respective councils The RAG comprises certain members of the MC and is responsible to oversee the overall risk management function in MISC and to advise the President / CEO and MC on issues relating to : • policies. reviews and monitors finance risk exposure at Group level and makes appropriate recommendations to companies within the Group. At the same time. Continual assessment and profiling is carried out to ensure preventive and .internal control statement 043 Board of Directors (Board) recovery measures are adequate in the challenging maritime environment. MISC benefited from being part of the PETRONAS Group. MISC has also developed the Country Risk Management Framework and Guidelines as a guide in managing country risk. procedures and guidelines related to risk management in line with market changes over time positions and exposures to ensure compliance with Group policy and recommend corrective actions issues arising from business lines and recommend solutions to management risk limits • • • The RAG is required to meet and update any risk management issues on a regular basis to the President / CEO. price and counter-party risks. which has an established Risk Management Committee. Further improvement actions have been identified for implementation to ensure that the impact of maritime risk exposure can be mitigated or further reduced. MISC has a representative to PETRONAS Country Risk Council which allows the company to leverage on resources of Petronas Group in managing country risks. The Maritime Risk Council (MRC) is responsible to ensure various maritime-related risks are identified and all necessary measures are in place for MISC to comply with the stringent international safety and environmental standards. MC and the Board. The Council has developed the Maritime Risk Management Framework and Guidelines in order to ensure that maritime risks are managed in a structured manner. liquidity. interest rate. The FRC is a forum which proactively discusses.
GIA monitors the status of their implementation through the Quarterly Audit Status Report which is presented before the MAC and BAC half yearly. The audits are designed to verify. relating results comply with the planned arrangements and effective implementation. In addition. developed to focus on the importance of these four key values:• • • • Loyalty Integrity Professionalism Cohesiveness The conducts of internal audit work is governed by the Internal Audit Charter and the Internal Audit Charter Memorandum. MAC or BAC. CHSE also drives strategies and monitors performance to ensure HSE risks are managed to as low as reasonably practicable. The importance of the shared values is manifested in the Corporation’s Code of Conduct for Officers and Staff which is issued to all staff upon joining. There is a Corporate Health. which reports regularly to the MAC and BAC. Senior Management sets the tone for an effective control culture in the organisation through the company’s shared values. Chevron Texaco. On a quarterly as well as annual basis. The key in solving lapses in internal controls is the execution of the Agreed Corrective Actions which are encompassed in the audit reports. GIA submits the findings and recommendations on audit issues to the MAC for executive reviews. Safety and Environment (CHSE) Division which drives various HSE sustainability policies & initiatives and defines the framework that exemplifies the corporate’s effort to continuously meet legal compliance as a minimum. 3. The BAC reviews audit reports and also conducts annual assessment on the adequacy of GIA’s scope of work. The Board Audit Committee (BAC) operating within its terms of reference and Management Audit Committee (MAC) performs an important role in ensuring that there are effective risk monitoring and compliance procedures to provide the level of assurance required by the Board. internal controls and governance process. these findings are analysed and consolidated reports are submitted to the MAC for review. performs independent scheduled audits on the MISC Group vessels. 5. Prior to submission to the BAC. reporting to the BAC. MISC Group vessels are subject to stringent audits. functions and resources including its annual audit plan and strategy. 2. the Group is also subject to periodic management reviews by our customers’ risk management entities such as EXXON MOBIL. comments and further actions. performs an independent scheduled audits within the Group to evaluate and assess the effectiveness of risk management. evaluate and review the relevant management system activities. vettings/inspections to meet various regulatory and commercial requirements. The monitoring of follow-ups and the status of the corrective actions is maintained on 2 monthly basis. British Petroleum Plc (BP). . GIA also conducts additional assurance assignments upon request by the Management. Employees are required to strictly adhere to the Code in performing their duties. SHELL and Broken-Hill Properties (BHP). The Ship Management Audit Division.internal control statement 044 Key Processes The process of governing the effectiveness and integrity of the system of internal control is carried throughout the various areas as follows:1. These include vettings by oil majors and audits by the Malaysian Maritime Authority and ship classification societies to maintain international safety and security management certification under the relevant Codes. The deliberations and decisions are shared during BAC meetings. 4. The BAC is also updated on the status of the corrective action as appropriate. The Ship Management Audit Division would submit its findings and recommendations on corrective actions of each ship audited to the respective Fleet Management. The audits are also designed to ensure vessels’ integrity is maintained with on-going maintenance to enhance the safety and reliability at all times. MISC Group Internal Audit (GIA).
2. The professionalism and competency of staff are enhanced through a structured training and development program and potential entrants/candidates are subject to a stringent recruitment process. there is also a Corporate Security Division (CSD) which maintains a clear policy. which acts as an enabler to improve business processes. Action plans to address staff developmental requirements are prepared and implemented timely. Management would continue to take measures to strengthen the Group’s control environment. The Board does not regularly review the internal control system of its associated companies joint ventures and jointly controlled entities. joint ventures and jointly controlled entities. This is to ensure that staff are able to deliver their KPIs so that the company can meet its future management requirements. initiatives is monitored and reported at the ICTSC meetings to ensure smooth implementation. MISC’s information and communication systems. 6. procedures and framework with the aim to continuously monitor adherence to established industry security standards as well as international security standards applicable under the relevant codes. System reviews are initiated and conducted to confirm adequate controls are being established in order to adhere to the Company’s business objectives.internal control statement 045 6. Other Significant Elements of Internal Control Systems 1. policies and procedures. are being implemented throughout the Group. These representations also provide the Board with information for timely decision making on the continuity of the Group's investments based on the performance of the associated companies. 5. The Group performs a comprehensive annual budgeting and planning exercise including the development of business strategies for the next five years. Variances against the budget are analysed and reported internally on a monthly and quarterly basis and reported quarterly to the Board. Limits of Authority (LOA) manual provides a sound framework of authority and accountability within the organisation and facilitates quality and timely corporate decision making at the appropriate level in the organisation’s hierarchy. Progress of ICT . In addition to the CHSE. the group’s interests are served through representation on the board of the respective associated companies and receipt and review of management accounts and inquiries thereon. Information and Communications Technology (ICT) is extensively employed in MISC to automate work processes and to collect key business information. 4. There were no material losses incurred during the current financial year as a result of weaknesses of internal control. legal. The Group’s strategic directions are also reviewed semi-annually taking into account changes in market conditions and significant business risks. work productivity and decision making. transparent and fair manner. There is a clear procedure for investment appraisal including equity investment or divestment and capital expenditure. Quarterly reports presented to the Management and Board Audit Committees and agreed corrective actions are taken to address any non-compliances. An Information and Communications Technology Steering Committee (ICTSC) is established to provide strategic directions and guidance to ICT initiatives. Notwithstanding. Tender Committees are established to ensure tender evaluation exercises are conducted in an effective. Financial performance is deliberated by the MC and also tabled to the Board on a quarterly basis. The Board reviews quarterly reports from Management on key operating performance. 3. and establishment of performance indicators against which business units and subsidiary companies can be evaluated. environmental and regulatory matters. with established key performance indicators (KPIs) to measure staff performance and the performance review is conducted on an annual basis. A performance management system is in place. as the Board does not have any direct control over their operations. This statement is made in accordance with the resolution of the Board of Directors dated 10th May 2007.
No Alternate Director can be appointed a member of the Committee. the Vice President Finance.terms of reference of the board audit committee 046 Terms of Reference of the Board Audit Committee Board Audit Committee Members Dato' Halipah binti Esa (Chairman) Dato Sri Liang Kim Bang Harry K Menon Dato' Kalsom binti Abd Rahman 1. at least once a year the Committee shall meet with the external auditors without any Executive Board member present. 3. . The Committee is authorised by the Board to obtain outside legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary. It is authorised to seek any information it requires from any employee and all employees are directed to co-operate with any request made by the Committee. 6. Frequency of Meetings Meetings shall be held not less than three times a year. Constitution The Board Audit Committee ("Committee") was established on 28 June 1993. The General Manager Internal Audit shall be the Secretary of the Committee. However. Membership The Committee shall be appointed by the Board from amongst its directors and shall consist of not less than three members with the majority being Independent Directors. Authority The Committee is authorised by the Board to investigate any activity within its Terms of Reference. 4. Attendance at Meetings The President/CEO. 5. At least one member of the Committee must be a member of the Malaysian Institute of Accountants (MIA) or have at least 3 years working experience and have passed the examinations specified in Part 1 of the 1st Schedule of the Accountants Act 1967 or be a member of one of the associations of accountants specified by Part II of the 1st Schedule of the Accountants Act 1967. The external auditors may request a meeting if they consider that one is necessary. 2. Chairman of Board Audit Committee The members of the Committee shall elect a Chairman from among their number who shall be an Independent Director. A quorum shall be two members. the General Manager Internal Audit and representative of the external auditors shall normally attend meetings.
k. with the external auditors. h. i. the quarterly results and year end financial statements. their audit report. processes. compliance with accounting standards and other legal requirements. the results of the internal audits. b. g. d. . their evaluation of the system of internal controls. e. any letter of resignation from the external auditors. the internal audit programme. Duties The duties of the Committee shall include the following: • review the following and report to the Board of Directors:a. procedure or course of conduct that raise questions of management integrity. focusing particularly on:- i. prior to the approval by the Board of Directors. with the external auditors. processes or investigation undertaken and whether or not appropriate action is taken on the recommendations of the internal audit functions. any related party transaction and conflict of interest situation that may arise within the Corporation or Group including any transaction. the adequacy of the scope. ii. f. and j. Reporting Procedures The Secretary shall circulate the minutes of meetings of the Committee to all Members of the Board. c. significant and unusual events.terms of reference of the board audit committee 047 7. the audit plan. 8. functions and resources of the internal audit functions and that it has the necessary authority to carry out its work. and whether there is any reason (supported by grounds) to believe that the Corporation’s external auditors are not suitable for re-appointment. changes in or implementation of major accounting policy changes. recommend the nomination of a person or persons as external auditors. the assistance and co-operation given by the employees of the Corporation to the external auditors. with the external auditors. and iii.
048 President / CEO’s Report .
MISC’s offshore and heavy engineering businesses benefited from the rapid growth in the oil & gas upstream Exploration and Production (E&P) activities through its progressive capability development. the shipping industry continued to be challenging with increasing operating costs and softening freight rates particularly in the liner business. overcapacity and increased operating cost. World Gross Domestic Product (GDP) growth improved slightly in 2006 despite high oil prices and rising interest rates. As expected. MILS rationalised its haulage business and developed new facilities to improve its service offerings. In response to the highly challenging domestic logistics environment. However. the redesigning of our network enabled Liner business to enhance its cost efficiency and improve its yield management activities to remain competitive. the slower global oil demand growth due to high oil prices and excess capacity of petroleum tankers exerted downward pressure on the overall petroleum freight rates. The chemical shipping market remained robust throughout the year due to increased global chemical seaborne trade driven mainly by new petrochemical plants in the Middle East and the introduction of new regulation requiring tankers with higher specification.president/CEO’s report 049 For the financial year ended 31st March 2007. The continued global economic growth sustained the demand for energy especially oil and gas. Leveraging on strategic partnerships. arm. The growth in global LNG trade demand continued to support the growing LNG shipping tonnage. Leveraging on strategic partnerships. offshore business enhanced its position by offering more effective solutions for domestic and international small field and deepwater offshore projects. Our heavy engineering . MMHE produced a record profit for the year as a result of its refocused strategic direction and successful implementation of its capability building initiatives. offshore business enhanced its position by offering more effective solutions for domestic and international small field and deepwater offshore projects. The liner shipping market continued to experience cyclical downturn on the back of softening freight rates.
president/CEO’s report 050 LNG Shipping Business The global LNG shipping industry continued to be robust during the year under review with the strong Global LNG trade demand growth of 10.6% as compared to 8. boosting the global fleet size to 222 vessels in 2006. and Compressed Natural Gas Carriers (CNGC). . hence many LNG shipping players are exploring new technological innovations such as the development of Shuttle Regassification Vessel (SRV).8% growth in the previous year. Seri Angkasa was delivered to MLNG to commence its twenty-year time charter contract. Seri Angkasa in January 2007. The World LNG fleet grew by 14. MLNG also renewed its charter contracts for Tenaga Tiga and Tenaga Lima for fifteen years commencing May The year under review also witnessed MISC’s first third party contract involving a new LNG carrier. The LNG shipping market is evolving towards leveraging on technology as a competitive advantage. Seri Anggun which commenced medium term employment with BG Group in November 2006.4% despite high newbuilding prices. Floating Storage and Regasification Unit (FSRU). MISC continued to support PETRONAS’ Global LNG business expansion strategy with the delivery of its 23rd LNG carrier.
9% of MISC's operating profit was derived from LNG Shipping Business. China and India. Subsequently. Australia. Norway and Russia. Nigeria. Australia. Nigeria.LNG Shipping Business 051 Hemiji Castle. Trinidad & Tobago. charter contracts for Aman Bintulu and Aman Hakata were also extended to 2028. Existing Routes Future Routes AUSTRALIA . MISC is partnering with a leading provider of floating production facilities for a joint development of a FSRU and with a technology developer in exploring CNGC potentials. Japan and July 2006 respectively. MISC enhanced further its relationship with Gaz de France (GdF) with an extension of its charter party contract for Tenaga Satu for another year starting April 2007 with option for two more years. secure third party long term contracts and leverage on synergies between different business units. EUROPE USA ALGERIA MEXICO EGYPT TRINIDAD & TOBAGO NIGERIA YEMEN MALAYSIA TURKEY SOUTH KOREA JAPAN TAIWAN To keep pace with the evolution of technology in the LNG shipping industry.5% of MISC's revenue and 44. Japan. LNG trade is forecast to double in 2015 supported by the increasing supply from new LNG liquefaction plants in Oman. MISC will apply a three pronged strategy to continually provide PETRONAS its LNG transportation and logistics needs. Norway and Russia. 21. Qatar. In realising its aspiration to be a global leader in LNG transportation. BG Group awarded a similar contract for another new LNG carrier of the same class which will be delivered in December 2007. as LNG trade is forecast to double in 2015 supported by the increasing supply from new LNG liquefaction plants in Oman. Qatar. Korea. The year under review also witnessed MISC's first third party contract involving a new LNG carrier. The demand outlook for LNG shipping is expected to remain strong in the coming years. In addition. coupled with increasing demand for cleaner fuels mainly from Europe. Seri Anggun which commenced medium term employment with BG Group in November 2006. Trinidad & Tobago. During the year. Similarly.
the weakening of oil prices from previous highs assisted the demand for oil to remain buoyant. . The delivery growth of newbuildings was higher than the scrapping rate of old tonnages. En.president/CEO’s report 052 Petroleum Shipping Business The overall freight rates in the petroleum shipping industry were under pressure due to slower global oil demand growth especially from North America and China. President & CEO of AET. This venture will further enhance AET's position in the Aframax Europe market. petroleum tanker freight rates were softer especially in the Aframax segment. A joint venture with Restis Group was established to co-own ten new Aframax tankers contracted at Sungdong Yard with deliveries between 2009 and 2011. Amir Azizan at the Launching of AET’s new corporate identity. As a result. However.
a joint venture with Restis Group was established to co-own ten new Aframax tankers contracted at Sungdong Yard with deliveries between 2009 and 2011. AET also contracted six Aframax tankers at Tsuneishi shipyard with deliveries between 2009 and 2010. Two MISC chemical tankers which were subject to trading restriction due to new regulations were converted into product tankers in December 2006. Leveraging on its existing strength of service offerings. 33% of MISC's revenue and 42. MISC will strengthen its global leadership position in the Aframax tanker market. This arrangement will enable AET to continue operating these tankers whilst re-investing the capital released in newer tonnage. The short term outlook for petroleum shipping business will however remain challenging.7% of its operating profit were derived from the petroleum shipping business. the anticipated high demand for transportation of Clean Petroleum Products (CPP) in the medium term will provide positive prospect in the product tanker segment. United Kingdom Earlier in the year. exerting further downward pressure on VLCC and Aframax freight rates. With these two tankers. This will be part financed through sale and lease-back arrangements for five of its older Aframax tankers. However. This venture will further enhance AET’s position in the Aframax Europe market.petroleum shipping business 053 Big Ben. The anticipated high demand for transportation of Clean Petroleum Products (CPP) in the medium term will provide positive prospect in the product tanker segment. In the year under review. During the year. In facing the challenges and opportunities ahead. AET also grew its Aframax fleet by in-chartering four additional tankers thus enhancing its Aframax critical mass to forty eight (thirty one owned). AET also expanded its presence in product tanker services. The high influx of newbuilds and extended phase-out of ageing tankers will generate excess capacity. Bunga Kasturi Tiga and Bunga Kasturi Empat bringing its VLCC fleet to ten tankers (nine owned). develop itself as a significant global owner operator of VLCCs and further capitalise on opportunities in product tanker business segment. AET has a product tanker fleet of ten. . AET took delivery of two VLCCs. These strategies will further enhance MISC's presence as a leading petroleum tanker operator in the Atlantic basin market and in the Middle East markets.
MISC also successfully renewed nine Contracts of Afreightment (COA) with ExxonMobil. On the supply side. growth in chemical tanker tonnage was balanced by new deliveries and the restriction of lower specification tankers due to the revised MARPOL Annex II Regulation.president/CEO’s report 054 The year 2006 witnessed firm freight rates for the chemical shipping market. Demand for chemical tankers increased on the back of considerable growth of new petrochemical plant capacity in the Middle East and heightened petrochemical trading activities. Chemical Shipping Business . PETRONAS Trading Corporation. During the year. Kuok Oils & Grains Pte Ltd and Iffcochart Limited.
FR8 Navigation.8% of its operating profit. Europe and the Americas and establish itself to be a leader in the global chemical tanker market. The outlook for chemical shipping industry is encouraging with higher demand for more sophisticated chemical tankers and the development of petrochemical plants in the Middle East.8% of MISC's revenue in 2007 and 3. With the implementation of the growth strategy for the chemical shipping business. MISC also successfully renewed nine Contracts of Afreightment (COA) with ExxonMobil. MISC's chemical shipping business is a relatively small contributor to MISC's operating results. India As highlighted last financial year. During the year. MISC chartered out four of the single hull Anggerik class tankers to Bryggen Shipping AS for five years commencing August 2006 and converted the two Semarak class tankers to product tankers trading under AET. MISC will have global reach capabilities trading in Asia. PETRONAS Trading Corporation. accounting for 4. Wilmar Trading Pte Ltd and IOI Loders Crocklaan. In response to this positive outlook. six of MISC’s single hull chemical tankers were restricted from transporting vegetable oil from January 2007 as stipulated by MARPOL Annex II Regulation.chemical shipping business 055 Taj Mahal. extended one COA with Tenaga Nasional Berhad (TNB) and secured seven new contracts with Golden Hope Berhad. . MISC will continue developing its presence in the niche market segments of chemical and vegetable oil transportation by building economies of scale either through newbuilds or in charter programs. Kuok Oils & Grains Pte Ltd and Iffcochart Limited. In maintaining the trading opportunities of these tankers.
oil and gas companies are increasing their upstream E&P activities. The high oil price has spurred the demand for offshore deepwater and small field development especially for projects involving FPSO/FSOs for the next 5 years. . for deployment in Cendor field. FSO Cendor is on a High oil price has spurred the demand for offshore deepwater and small field development especially for projects involving FPSO/FSOs for the next 5 years. Terengganu. offshore Kerteh. This demand presents an attractive opportunity for MISC to enhance its offshore business by offering comprehensive solutions for offshore development. Asia is expected to outpace other regions in deepwater offshore development especially in Malaysia and China while other countries in the region will be focusing on shallow water prospects.president/CEO’s report 056 Offshore Business With demand for hydrocarbons rising steadily and reserves declining. which was converted at MMHE. During financial year 2006/2007. MISC completed and delivered its second FSO facility.
offshore Sabah and is expected to produce first oil in July 2007. In supporting the strategy to grow regionally and internationally. in November 2006. MISC. FPSO Kikeh. MISC delivered another FSO facility. which had been converted successfully at MMHE. Terengganu to begin a ten-year lease contract with PETRONAS Carigali Sdn Bhd (PCSB). Brazil two year lease contract with Petrofac.1% of its operating profit. . In March 2007. In line with the growth of deepwater E&P activity in Malaysia. offshore Brazil in November 2008 on a fifteenyear contract with SHELL. MISC will place priority in supporting Malaysian small field development through cost effective solutions and asset optimisation. was delivered to its designated location. The joint venture is a significant breakthrough for MISC into deepwater FPSO design. engineering and construction as well as operation and maintenance. In positioning itself as the preferred offshore floating solutions provider in the region. Malaysia to support the early production system with future extension option. MISC is committed to ensure the required capabilities are institutionalised within the organisation. In 2007. partnering with other regional players had also participated in bidding for other FPSO/FSO projects in Asia. MISC will also strive to form strategic alliances and deepwater technology acquisition as well as carrying out feasibility studies on other potential floating facilities. Strengthening further on the strategic partnership with SBM. MISC acquired a 49% equity stake in another SBM’s deepwater FPSO project. a joint venture project with Single Buoy Moorings Inc (SBM). FPSO Espirito Santo which will be delivered to the BC10 field. MISC was involved in the construction of FPSO Kikeh for Murphy Sabah Oil Ltd. The demand outlook for FPSO/FSO is robust as market drivers for offshore E&P activities will remain strong especially in Asia. These deliveries marked the commitment MISC has in growing its offshore business and supporting the development of marginal fields in Malaysia. FSO Abu to Abu Cluster field. a joint venture project with the Single Buoy Moorings Inc (SBM) is a significant breakthrough for MISC into deepwater FPSO design.offshore business 057 National Congress Building. engineering and construction as well as operation and maintenance. Offshore Business contributed 2% of MISC's revenue and 1. FPSO Kikeh.
earning higher day rates. Vietnam and Indonesia.president/CEO’s report 058 Marine & Heavy Engineering Business The growth in global energy demand led to increased E&P spending which had a positive impact on demand for offshore floaters and structures. The delivery of the deepwater FPSO Kikeh marked MMHE’s success in undertaking larger deepwater Marine Conversion projects. However. . The rise in offshore E&P activities led to high rig utilization. our ship repair business was affected by the phasing-out of the single hull tankers and the emergences of lowcost ship repair centres in China. part of which went towards repairs of rigs. The weakened freight markets also resulted in postponement of ship repair work.
Capitalising on the positive market prospects in this sector. MMHE successfully completed three topside fabrication projects namely the E11PB. Kikeh DTU and Ledang Anoa topsides. The delivery of the deepwater FPSO Kikeh marked MMHE's success in undertaking larger deepwater Marine Conversion projects. The implementation of procurement and subcontracting capability exercise resulted in a total savings of RM19 million. The resultant joint venture company. MSLNG successfully completed the repair of six LNG carriers. The capability building initiative.marine & heavy engineering business 059 Sydney Opera House. MMHE is set to achieve its vision of becoming the regional hub for engineering and construction of deepwater facilities and high value marine repairs. These projects signify the capability of MMHE in participating in offshore heavy engineering deepwater projects. provides maintenance and refurbishment services to LNG shipowners. Two turret fabrication projects were completed and delivered to Australia and Brazil field development. MMHE also completed high value marine repairs for nine LNG carriers. . The capability building initiative which continued throughout financial year 2006/2007 focused on strengthening business processes and improving productivity. MMHE embarked on its yard optimisation initiative. FPSO Kikeh. MMHE also completed two FSO projects. MMHE formed a strategic partnership with Samsung Heavy Industries Co Ltd (SHI) in April 2006. Coupled with the yard optimisation initiative. This optimisation initiative will not only increase its productivity but will also position MMHE as a leading regional shipyard. an implementation of procurement and subcontracting capability exercise resulted in a total savings of RM19 million. four chemical tankers and six drilling rigs. In addition. In its effort to build capabilities and facilities for deepwater projects. Australia During the year under review. Global demand for deepwater oil & gas facilities will remain strong due to increasing spending in E&P. for MISC within the period. MMHE accounted for 12% of MISC's revenue and 6% operating profits. MMHE-SHI LNG Sdn Bhd (MSLNG). seventeen petroleum tankers. The yard optimisation initiative commenced in December 2006 with the development of the Cutting and Assembly workshop aimed at meeting the requirement of large deepwater projects. FSO Cendor and FSO Abu. In its initial year. To strengthen its Marine Repair business. and one deepwater FPSO project. MMHE expects to focus its business on high value marine repairs and on enhancing its engineering design and project management capabilities for construction and conversion of oil and gas support vessels as well as focusing on oil and gas deepwater engineering solution.
higher bunker prices and operating costs. the global liner shipping industry experienced a market downturn during the financial year.8% growth in the previous year. The liner trade was plagued by overcapacity due to delivery of larger TEU vessels. Freight rates for the Asia/Europe service saw substantial decrease in the first half but improved considerably towards end of second half of the year after a low base due to ongoing strong cargo volumes.1% compared to 6. . Halal Express was successfully launched and accepted favourably by the market with the aim to tap the growing demand for halal products in the Middle East and Indian Subcontinent. Though global trade volumes increased by 7. As member of the Grand A new service.president/CEO’s report 060 Liner Shipping Business As expected. the liner shipping industry remained challenging throughout the year.
A new service. During this challenging year. Whilst the South Africa service generated reasonable gains. MISC will also strive to maintain a position in alliances where it is a core partner. MISC Liner Halal Express was successfully launched and accepted favorably by the market with the aim to tap the growing demand for halal products in Middle East and Indian Subcontinent. During this process. the liner business nevertheless progressed further with its cost efficiency initiatives. and establish itself as a leading player in the Halal supply chain solution. The Intra Asia services continued to be a difficult market. The business outlook for liner shipping will continue to be challenging in the coming year due to overcapacity with the delivery of newbuildings further pressuring freight rates. MISC restructured its services and entered into an alliance with Orient Overseas Container Line (OOCL) and TSK Line Agencies (TSK) for greater efficiency. MISC integrated its liner business with MISC Agencies.liner shipping business 061 Windmill.334 TEU ships to improve overall scale efficiency under a vessel swap arrangement for its two 7. The disposal of the ageing Bunga Pelangi was subsequently replaced with a similar size vessel in chartered at attractive terms. the Bunga Seroja Series which were delivered during the year.943 TEU newbuildings. the domestic Perdana service managed to break-even despite operational challenges within the consortium. MISC formed a strategic partnership with CargoSmart to further improve its CRM efforts and provide e-business solutions to liner customers. MISC's strategy is to focus on long haul routes by strengthening its position in the East-West trade with a focus on the European markets. Netherlands Alliance. MISC injected three 5. MISC continued to reduce unit cost through in chartering of tonnage. To strengthen the front line operations. The Australia trade remained weak due to low freight rates and temporary loss of Australian coastal cargoes due to a new entrant trying to re-establish as a domestic Australian operator which later failed. . The New Zealand service was poor due to overcapacity but the new enlarged consortium enhanced MISC services through competitive product and cost.
MILS restructured its haulage business whilst continuing to provide transport services as part of its total logistics and supply chain solutions. will result in the formation of a 90.000 square MILS will boost its position as a niche logistics player epecially on the provision of valueadded logistics services with the completion of MILS Logisitcs Hub (MLH) in Pulau Indah.president/CEO’s report 062 Integrated Logistics Business The Malaysian general logistics industry remained highly competitive and challenging mainly due to overcrowding of players providing similar services. MILS will boost its position as a niche logistics player especially on the provision of valueadded logistics services with the completion of MILS Logistics Hub (MLH) in Pulau Indah. During the year. The globalisation of markets significantly increased the demand for the movement of merchandise. Capitalizing on this trend. goods and services in the supply chain and logistics sector. The haulage industry continued to struggle with low rates and rising operating cost resulting in many players restructuring their haulage business. upon completion. The 3-phase development of the MLH. .
United Arab Emirates metres multi modular storage and processing facility. In line with MILS’ strategy to strengthen its automotive supply chain and logistics capabilities. The outlook for the regional logistics market is positive due to the rapid growth in consumer markets and liberalisation of trade. MILS will offer total cold chain logistics solutions with the development of cold and chilled facilities at MLH. thus creating a hub and spoke network for halal products. The facility will be MILS’ first halal hub supported by the MISC Liner Halal Express Services. . a joint venture was formed with BLG International Logistics GmbH to offer custom-made solutions to the automotive industry by providing a full range of automotive logistics services. MLH will also provide services including regional storage and distribution. Fast Moving Consumer Goods (FMCG). MILS will focus its efforts in the Oil & Gas. Moving forward. Dubai. Through its joint venture with ETB Seafrigo. one of Europe’s largest cold storage specialists. Fast Moving Consumer Goods (FMCG). Vendor Managed Inventory (VMI). MILS is establishing a logistics hub to service its customers in Middle East and Africa through its joint venture company MISC-Rais LLC. MILS will also replicate MLH business model and capabilities to other distribution centres in the region. Leveraging on its strategic partnership with SterilGamma Sdn Bhd. MILS will focus its efforts in the Oil & Gas. light assembly and other core logistics solution services. Automotive and Public Sector business segments.integrated logistics business 063 Burj Al Arab. Automotive Public Sector business segments. MILS will be able to operate sterilisation and fumigation facilities at MLH. Moving forward. MILS is set to achieve its aspirations as the preferred partner in supply chain solutions and logistics services. Awarded Free Commercial Zone status. In view of the strategic partnerships and development of MLH capabilities.
the development of skilled and competent maritime and shipping personnel continued to be critical. . regulations becoming more stringent and the evolvement of marine technology. In its rally to meet the demand. acquisition of state of the art facilities and collaboration with highly regarded maritime institutions. Akademi Laut Malaysia (ALAM) continued to engage its key role as a centre in providing excellent maritime education and training programs through the continuous development of its curriculum and course offerings. A Memorandum of Understanding (MOU) was signed with the United States Merchant Marine Academy (USMMA) which provides a benchmarking capability for the enhanced curricula developed in ALAM.president/CEO’s report 064 Maritime Education With global fleet growing in significant numbers.
an academic collaboration with STC Group. The strategy to further develop and upgrade its curriculum and infrastructure and to continue leverage on strategic alliances with leading maritime academies will better position ALAM to become a world class maritime education and training institution with capabilities in Energy shipping. The Netherlands was developed to improve the maritime logistics and offshore basic training program. shorebased maritime management and offshore safety administration. which is a United Kingdom maritime training institute that specialises in providing seafarers with marine steam engineering expertise that is required for the operation of most LNG carriers.maritime education 065 During the year under review. ALAM also created history when the first eighteen Malaysian female cadets enrolled in its cadetship program in July 2006. ALAM also signed MOUs with several higher technical learning institutions including University of Technology Malaysia (UTM). ALAM is now being recognized not only as a maritime training centre but also as a business partner to the regional shipping and oil & gas players. In supporting MISC's growth in the energy sector in general and offshore business in particular. ALAM developed strategic alliances with reputable academic and maritime training institutions in an effort to continuously upgrade its capabilities and quality of its maritime education and training. in the pursuit to position itself as the regional training hub for LNG. with the aim of enhancing the training curricula for the development of management trainees for Fleet Management Services and junior engineers for Offshore Business Unit. ALAM's focus will be to produce highly qualified and competent graduates. A Memorandum of Understanding (MOU) was signed with the United States Merchant Marine Academy (USMMA) which provides a benchmarking capability for the enhanced curricula developed in ALAM. To add to the eventful year. Petroleum and Chemical shipping personnel. ALAM signed an agreement with Teledata Marine Systems Pte Ltd to develop the world’s first e-Learning package on LNG Shipping Cargo Operations which is expected to be launched in mid 2007. University Technology of PETRONAS (UTP) and SIRIM. ALAM's LNG simulator training syllabus was adopted by IMO as its model course. continued to enhance its facilities with the acquisition of a series of simulators and the latest Distributed Control System. . Going forward. ALAM. ALAM also has an affiliation with Southshields Maritime College. Locally. Institute Petroleum Technology of PETRONAS (INSTEP).
MISC initiated steps to cooperate with UTM and ALAM on research and advance technology transfer programmes. mindset and behaviours to meet the dynamic industry challenges. .president/CEO’s report 066 Fleet Management Significant growth in the global fleet where large numbers of LNG. In strengthening FMS' capabilites in emerging shipping and marine engineering technologies. petroleum and chemical tankers will be delivered up to 2011 and the enhancement of marine technology have shaped the shipping industry to be constantly challenged with shortage of competent and qualified personnel. the substantial fleet expansion plan demanded a larger pool of competent seafarers with the requisite leadership skills. The shortage led to rampant movement of personnel within the industry and called for a strategic retention programme. In MISC.
In this phase. procurement. In strengthening FMS’ capabilities in emerging shipping and marine engineering technologies. With the continuous implementation of capability building initiatives. The cooperation had produced several initiatives during the year including the "Post Graduate Professional Certificate Programme" and establishment of the Marine Technology Research and Database which will be further continued to provide enhanced capability for FMS in ensuring a pool of highly competent seafarers and fleet managers. FMS continued with its Senior Officers’ Management Forums for shipboard management. MISC initiated steps to cooperate with UTM and ALAM on research and advance technology transfer programmes. Focusing on enhancement of integration and effective relationship between sea and shore staff. . FMS is poised to support MISC's business requirements. fuel efficiency. The capability driven FMS will not only provide cost effective but also competitive edge services to bring MISC to greater heights in facing the evolving shipping and maritime industry. dry docking and crew management. Four sessions were conducted during the financial year involving more than half of senior MISC's ship officers. and the committment to producing leaders with the right mindset who will steer the organisation.fleet management 067 FMS Initiatives of the Year FMS Capability Building Programmes Senior Officers’ Management Forums UTM & ALAM Post Graduate Professional Certificate Programmes Marine Technology Research & Database Setup Fleet Management Services (FMS) capability building programme has progressed into the ‘solution design’ stage. focus was put on five capability areas: maintenance. focused on the development of qualified and technologically savvy ship personnel.
president/CEO’s report 068 Human Resource Management Recognising the importance of and need for competent and committed human capital to drive and sustain competitive edge in achieving business targets. developing technical. MISC intensified its intake of management trainees to eighty seven in various engineering. in order to groom them to be future leaders in the organisation. During the year. forty five tertiary education sponsorships were granted to selected students to pursue undergraduate courses in technical disciplines such MISC also executed structured executive and management development programmes and created cross-posting opportunities within the Group to provide job enrichment for employees. . In addition. and retaining talent. attracting the right talents. business and leadership skills. finance and business disciplines and exposed them to on-the-job training and guidance. MISC implemented several strategies and initiatives with greater emphasis primarily on areas of intensifying sourcing and broadening talent sources.
and in Finance. MISC Employee Tracking Mindset Survey was conducted early in the year with the aim of understanding employees and their motivation level. Staff Education Enhancement Programme (SEEP) was implemented commencing with one executive sponsored to pursue Master of Business Administration (MBA) in Finance at Harvard Business School. In meeting the challenges ahead. MISC Skill Group Development framework was instituted. As part of the talent retention strategy. the second mentoring programme for session financial year 2006 till 2008 which involved thirty six junior executives was conducted to ensure right development of leadership skills in their early years with the organisation.human resource management 069 as Naval Architecture. MISC will continue to focus on human capital development through continuous implementation of suitable programmes. To support continuous employee education. Marine Engineering and Mechanical Engineering. The performance based culture was further strengthened through implementation of Individual Performance Contracts (IPC) for all executives.g. An assessment centre was established to identify potential leaders where through Development Workshops. their leadership development and career path will be charted. MISC is set to achieve its vision to be a global champion within the maritime transportation and logistics business. Several mindset intervention programmes based on the influence model were implemented to improve the mindset level and sustain the change momentum. With the appropriate human resource strategies and initiatives in place. Leadership Opportunity Matching (LOM). MISC also executed structured executive and management development programmes and created cross-posting opportunities within the Group to provide job enrichment for employees. is ongoing to support MISC's succession plan. To provide the executives with the right skills and competencies at the developmental stage of their career. In addition. an exercise to identify potential leaders and match them with opportunities within the organisation. Accountancy and Business Administration. Leadership Excellence at PETRONAS (LEAP) were conducted to equip and prepare existing/new leaders in all aspects when assuming leadership positions. Relevant ‘conditioning’ programmes e. MISC is reviewing its reward strategy by conducting industry-specific total remuneration survey. .
MISC will continue to be responsive to market developments and proactively strategise to react to the dynamic market situation. petroleum and chemical shipping businesses. growing its asset size at the right price and improving its cost effectiveness. The chemical shipping business will continue to develop its presence in the niche market segments of chemical and vegetable oil transportation by seizing the opportunities With the ever changing and challenging shipping market. Leveraging on present business partnerships. . It is anticipated that this trend will remain throughout most of the coming year due to significant vessel supply/demand imbalance and volatility of energy prices. Future Outlook MISC will continue its growth strategies to be a global champion in energy transportation and logistics services by expanding its LNG. In view of the challenging shipping industry. MISC will also look at inorganic growth opportunities as an alternative to build critical mass and expand global coverage. With the ever changing and challenging shipping market. MISC will grow its third party LNG business by sourcing and securing new long term contracts through tender and direct negotiations. growing its assets size at the right price and improving its cost effectiveness.president/CEO’s report 070 The shipping downcycle which started in late financial year 2005/2006 continued during the year under review. The petroleum shipping business will defend its global leadership position in the Aframax tanker market and further capitalise on the opportunities within product tanker market. MISC will focus on strengthening its strategic partnerships for business opportunities. MISC will focus on strengthening its strategic partnerships for business opportunities.
the Government and its Agencies. With its yard optimisation initiative. MISC will continue to integrate its Liner business with MILS in developing an ASEAN centric liner and logistics business. presented by the substantial growth of new petrochemical plants in the Middle East and the ever growing palm oil shipping business from Asia. with the support of qualified leaders. MMHE will continue to develop its competencies in completing the oil & gas facilities at world class standards. Board of Directors and Board Audit Committee for their guidance and assistance throughout the year. On behalf of the Management. MISC will move forward to achieve its vision of becoming "the preferred provider of world-class maritime transportation and logistics services". I would like to thank all our staff for their dedication and commitment towards realising our vision. The new MLH in Pulau Indah will position MISC as one of the premier logistics companies with state of the art facilities. and last but not least our stakeholders and shareholders for their trust and support.future outlook 071 In the short to medium term. The outlook for offshore and heavy engineering businesses is encouraging as the increased global demand for energy will spur oil and gas fields development globally. Continuous development of small and deepwater offshore fields will increase as relatively high fuel prices render the development of such fields to be economically viable. Liner business will focus on rebalancing its asset portfolio mix. improving cost efficiencies and strengthening its yield management initiatives. institutionalised capabilities and entrepreneurial mindset and behaviors. With its strategies in place. MMHE will transform itself into a regional hub for engineering and construction of deepwater facilities and high value marine repairs. build better resilience and grow in size. Capitalising on the positive market prospects of this sector. I would also wish to express my gratitude to the Chairman. our valued and supportive clients and partners. MISC will focus its efforts in capturing a significant portion of the requirements for domestic and regional offshore floating facilities. MISC will deliver world class performance. Dato’ Shamsul Azhar bin Abbas President/Chief Executive Officer Kuala Lumpur . Despite the challenging market environment. Liner business will continue to be challenging due to oversupply of capacity which is expected to put downward pressure on the freight rates.
15 Sept 06 . 15 June 06 . a Very Large Crude Carrier sized FPSO facility.corporate highlights 072 i i. 15 MISC ORDERS FOUR CHEMICAL TANKERS In addition to the current four chemical tanker newbuildings.MISC and DNV to develop fleet capability programme iii. 03 Aug 06 .MMHE completes the construction of Kikeh DTU Truss Spar ii iv Corporate Highlights 06-07 2 iii 2006 : June JOINT VENTURE BETWEEN AET AND GOLDEN ENERGY TANKER HOLDINGS CORPORATION AET entered into a 50:50 joint venture agreement with Golden Energy Tanker Holdings Corporation (a subsidiary of the Restis Group.000 DWT chemical tankers from STX Shipbuilding Co. 20 June 06 . Brazil. The JV company intends to own and operate up to ten Aframax tankers. 14 Aug 06 . MISC ACQUIRES STAKE IN FPSO BRASIL MISC acquired a 49% stake in the owning and operating companies of FPSO Brasil. presently located on the Roncador offshore field in the State of Rio De Janeiro. one of the largest shipping companies in Greece) with the purpose of owning and operating Aframax crude oil tankers.MISC orders four chemical tankers ii. MISC exercised its full option of ordering another four 38. 8 . 20 MISC AND DNV TO DEVELOP FLEET CAPABILITY PROGRAMME MISC signed a Consultancy Service Agreement with Det Norske Veritas (DNV) in which DNV will work together with MISC's Fleet Management Services (FMS) to determine the industry’s best practice and develop the most effective fleet capability solutions for MISC.MISC signs MOU with UTM for maritime industry capability building v. The remaining stake in FPSO Brasil is owned by SBM Holdings Inc.37th Annual General Meeting iv.
knowledge and to better appreciate the risks involved in LNG transportation. Tenaga Tiga and Tenaga Lima. The aim of the forum is to share business and performance expectations as well as enhance integration and foster better relationships. shipping and offshore industry. 14 MISC’s 37th ANNUAL GENERAL MEETING Close to 300 shareholders attended MISC's 37th Annual General Meeting at the Crowne Plaza Mutiara Hotel in Kuala Lumpur. shipping and offshore industry in Malaysia. the total dividend for FY 2005/2006 is 30 sen per share. MISC also signed with MLNG extensions for two current charterparty agreements in respect of two existing LNG carriers. With the successful completion of this deepwater structure. 23 FSO CENDOR RECEIVES FIRST OIL MISC’s FSO Cendor received its first oil from a mobile offshore production unit (MOPU) via a flexible submarine pipeline. Aman Hakata and Aman Bintulu. The first service of its kind. 2006 : August 3 MISC SIGNS MoU WITH UTM FOR MARITIME INDUSTRY CAPABILITY BUILDING MISC Berhad and Universiti Teknologi Malaysia (UTM) signed a Memorandum of Understanding (MoU) to cooperate in the development of capabilities and expertise and in the promotion of research activities in the maritime. The seminar was aimed at creating a discussion platform for all parties involved in the LNG transportation insurance industry to share their concerns. v 17 1st QUARTER ANALYSTS' BRIEFING 54 analysts and investors attended MISC's 1st Quarter Analysts' Briefing for the new financial year. Indonesia. the "MISC Halal Express". with the call of MISC's Bunga Delima to Northport. Bunga Kekaras orchestrated the rescue of 4 fishermen whose boat had capsized in the tsunami hit in Indonesia. The project is the first application of Spar Technology in this region. The briefing is part of the Group's Corporate Governance practice. The vessel. The Cendor field is located in Block PM304. 20 MISC COMMENCES FIRST HALAL SERVICE TO NORTHPORT MISC launched its latest liner service. an event that brings together MISC officers. enabling investors to be updated on the latest information on the Group's business performance and developments. together with Petronas Carigali. Kuwait Foreign Petroleum Exploration Company (Kufpec) and PetroVietnam Investment Development Company (PIDC) as its development partners. for Malaysia's maiden deepwater oil/gas exploration field.corporate highlights 073 24 MISC SIGNS TWO NEW CHARTERS AND TWO CHARTER EXTENSIONS FOR ITS EXISTING LNG CARRIERS MISC Berhad signed two new charterparty agreements with Malaysia LNG Sdn Bhd (MLNG) in respect of two existing Liquefied Natural Gas (LNG) carriers. but also Malaysia’s maritime. Together with the interim dividend of 10 sen per share. expatriate senior officers and MISC shore staff as well as manning agents and ALAM representatives was held for the third time. offshore Terengganu. and the first outside the Gulf of Mexico. had steamed out to sea after tsunami alerts were being broadcasted by regional tsunami alert centres. 2006 : September 15 MMHE COMPLETES THE CONSTRUCTION OF KIKEH DTU TRUSS SPAR Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) completed the construction of the first deepwater structure Kikeh DTU Truss Spar. where members approved a final dividend of 20 sen per share tax exempt. The joint undertaking is expected to generate substantial benefits not only for the two organisations. 19 BUNGA KEKARAS RESCUES TSUNAMI VICTIMS The crew of MISC's 30. MISC’s HALAL Express has set the stage for Malaysia to take the lead and play a more prominent role in its efforts to become a global HALAL hub. MMHE is moving aggressively to be one of the leading players in deepwater structures and FPSO and FSO conversion.000 MT Product tanker. which was anchored at Cilacap. . Malaysia and operated by Petrofac Malaysia Ltd. 2006 : July 4 17 MISC/JLT CO-HOST LNG INSURANCE SEMINAR MISC Berhad and Jardine Lloyd Thompson Sdn Bhd (JLT) co-hosted a two day LNG Seminar entitled "A World Leader in the field of LNG Transportation". SENIOR OFFICERS MANAGEMENT FORUM The Senior Officers Management forum.
31 DELIVERY OF MISC’S 8TH VLCC TANKER MISC Berhad took delivery of its eighth Very Large Crude Carrier (VLCC).MISC named LNG Operator of the Year . The coming into service of the VLCC enabled MISC to expand beyond its existing capabilities by capitalising on the rapidly growing global oil and gas market. 13 AET COMPLETES SALE AND LEASEBACK AGREEMENTS AET successfully completed the sale and lease-back of four of its Aframax tankers and signed a further deal to sell an additional vessel.Naming ceremony of Bunga Seroja Dua 2006 : October 3 MISC HOLDS BUKA PUASA GATHERING WITH ORPHANS FROM SEKENDI ORPHANAGE MISC staff gathered together for a Buka Puasa gathering with the orphans from Asrama Kebajikan Anak-Anak Yatim Sekendi. The continuous expansion of MISC’s Petroleum fleet under AET provides MISC with the critical mass it requires to better serve its customers globally. 26 Jan 07 . Bunga Kasturi Tiga. 2006 : November 6 MISC IS NAMED LNG OPERATOR OF THE YEAR FOR SECOND CONSECUTIVE YEAR MISC Berhad was once again voted LNG Operator of the Year at the 8th Lloyd's List Maritime Asia Awards. held in Kuala Lumpur.corporate highlights 074 i ii iii i. Selangor. 06 Nov 06 ii. . 15 Jan 07 iv. This is to realise high capital value through sale and lease-back arrangements which allows AET to continue operating these tankers whilst re-investing the capital released in newer tonnage. also to be leased-back. About 80 children from the orphanage received Hari Raya goodie bags while the orphanage received a cash donation from MISC to upgrade its facilities.MILS and BLG to provide automotive logistics . This is the second consecutive year MISC bagged the award that honours the best in the Asian Maritime Industry. 22 Dec 06 iii.Naming ceremony of Seri Angkasa .
500 DWT Aframax tankers from Tsuneishi Corporation of Japan. and to be a source of authoritative views for communication to governments. The BrandLaureate Awards recognises the best brands from Malaysia and Asia Pacific. BLG’s collaboration with MILS will be their first venture in South East Asia. Bunga Seroja Dua joined its sister vessel. Seri Anggun is the first LNG vessel to be named in Malaysia and its entry into MISC's LNG fleet further strengthened MISC's position as the world's largest single owner and operator of LNG carriers. operations and finance to transport their shipments through a reliable and extensive network of fixed routes to their destinations. to collaborate in the provision of Automotive Logistics in Malaysia. order fulfillment. She joins MISC's fleet as its 21st container vessel. through its subsidiary AET. MISC IS NAMED CILT COMPANY OF THE YEAR MISC was announced as Company of the Year by Chartered Institute of Logistics & Transport (CILT). a whollyowned subsidiary of BLG AG. where Seri Angkasa successfully completed her post gas trial inspection and final docking works. The BrandLaureate Awards is organised by Asia Pacific Brands Foundation (APBF). Johor. 43m in breadth and 24. a global professional body. The 145.corporate highlights 075 2006 : December 5 MISC SEALINER SYSTEMS WINS PREMIER ICT AWARD MISC Berhad's Container Shipping System (also known as SEALINER System) clinched the Premier Information Technology Award 2006 (APTM 2006) for the private sector this year. at Malaysia Marine and Heavy Engineering (MMHE) Yard in Pasir Gudang.000 cubic metre Seri Angkasa is the fourth of five new "Seri A Class" LNG carriers that has been ordered by MISC from Samsung Heavy Industries (SHI). The vessel is 318m in length.5m in depth. including in Malaysia. The tie-up will leverage on the strengths of MILS as a leading supply chain and logistics provider in the Malaysian market and BLG as the leading European automotive and automobile logistics provider. 26 NAMING CEREMONY OF BUNGA SEROJA DUA MISC received its second Ultra Large Containership (ULCS) of 7943 TEUs from Daewoo Shipbuilding and Marine Engineering (DSME). The increase in Aframax fleet size is aimed at replacing disposed tonnage and expanding the company's fleet capacity with modern tankers. 6 6 27 MISC HOLDS FIRST NAMING CEREMONY OF LNG VESSEL IN MALAYSIAN WATERS Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) successfully completed a post gas trial inspection and final docking works on a Liquefied Natural Gas (LNG) carrier at its shipyard in Pasir Gudang. 15 SERI ANGKASA IS MISC’S 23RD LNG CARRIER MISC held the naming ceremony of its 23rd LNG carrier. established with the aim to spread logistics and transport knowledge. Johor. 22 MISC INTEGRATED LOGISTICS TO PROVIDE AUTOMOTIVE LOGISTICS IN MALAYSIA MISC Integrated Logistics (MILS) formed a joint venture with Germany’s BLG International Logistics GmbH. Bunga Seroja Satu as the largest Malaysian registered container vessel to date. . industry and the community. The vessel was named Seri Anggun at a naming ceremony held at the shipyard. which was set up in 2004 to promote good branding practices and branding excellence in local industries. MISC EXPANDS FLEET WITH ORDER OF TWO NEW AFRAMAXES MISC. iv 2007 : January 8 MISC WINS THE BRANDLAUREATE AWARD MISC was awarded the BrandLaureate Award and named as Malaysia’s best shipping brand. The system provides MISC customers with end-to-end functionalities ranging from order processing. CILT has offices around the world. ordered two new 107.
16 MISC DONATES TO HELP REBUILD TWO FLOOD AFFECTED SCHOOLS IN JOHOR MISC Berhad. MISC also provided school uniforms to students whose houses were affected by the flood.corporate highlights 076 i iii ii i. a first of its kind in Malaysia.Naming ceremony of FPSO Kikeh .Naming ceremony of Bunga Kasturi Empat 2007 : February 2 MILS WINS GOLD AWARD IN SAFETY MILS was awarded the Gold Award for Safety in the Logistics category at the Anugerah Cemerlang Keselamatan dan Kesihatan Pekerjaan Kebangsaan 2006 awards ceremony. With the theme of "Enhancing Malaysia's Competitiveness in the Maritime Industry" the two-day seminar. was aimed at enlightening participants on some of the latest development in marine technology as well as provide insights into the business challenges currently faced by the maritime industry. organised by the Occupational Health and Safety Council of the Human Resource Ministry. 12 Apr 07 . assisted with the re-building of two flood-affected schools in Johor by contributing school supplies furniture and electronic goods to Sekolah Kebangsaan Kangka Tebrau and Sekolah Agama Kangka Tebrau. 23 MISC CO-ORGANISES FIRST MARINE SCIENCE TECHNOLOGY SEMINAR (MARSTEC 2007) MISC Berhad and Universiti Teknologi Malaysia jointly organised the first Marine Science and Technology Seminar (MARSTEC 2007). ii. 02 Feb 07 29 Mar 07 iii.MILS wins gold award in safety . .
carrying LNG from Egypt. Yusoff. sometime in mid 2008. its first call to a Norwegian plant. in conjunction with the 2nd World Halal Forum (WHF). YBhg. Through this collaboration. TENAGA SATU UNLOADS MAIDEN CARGO IN NORWAY MISC's LNG Carrier. the 152. Hassan Marican. 29 JOINT VENTURE (JV) AGREEMENT BETWEEN MISC BERHAD AND SBM HOLDINGS INC SA MISC entered into an 'own. In addition to this. 4 2007 : May 7 MILS WINS BEST HALAL-RELATED SERVICE PROVIDER MISC Integrated Logistics (MILS) was awarded the "Best Halal-Related Service Provider" by the Halal Journal. FPSO Kikeh will be moored on the Kikeh field (1320m) located 120 km northwest of Labuan. signed in August 2006. expertise and research activities in the maritime. unloaded the cargo at the liquefaction plant in Melkoya.300 cubic metres Seri B Class. FPSO Kikeh. The vessel. . Named. Malaysia and operated by Petronas Carigali and Newfield Exploration on a 50:50 joint venture. is currently under medium-term charter with Gaz de France. 29 MMHE CONSTRUCTS MALAYSIA’S FIRST DEEPWATER FPSO MMHE completed the construction of the first Malaysian deepwater FPSO facility. a partner in the Snohvit consortium. The signing is part of MISC's Memorandum of Understanding with UTM. a joint venture between MISC and Single Buoy Mooring (SBM). Japan.A. which was aimed to develop capabilities. wife of the Chairman of MISC. one to be delivered later this year and the sixth and final one. Puan Sri Datin Sri Noraini Mohd. The Abu field is located in Block PM318. MILS aims to develop and exhibit Malaysia as a pioneering Halal shipping and logistics hub for goods. The award is a positive reflection of MILS excellence in providing Halal Logistics Services to its customers. 10 MILS SIGNS MOU WITH HALAL INDUSTRY DEVELOPMENT CORP MILS signed an MOU with Halal Industry Development Corporation (HDC) to collaborate on activities related to MILS Halal Chain and the halal logistics industry. The LNG cargo is acquired from Gaz de France. marking a significant progress in the development of the country’s deepwater engineering and construction capability. 2007 : March 20 MISC WINS HSBC AWARD MISC was awarded the "Best Global Deal Initiated from Malaysia" by HSBC Bank Malaysia Berhad in recognition for the successful implementation of HSBC Cash Management solution (HSBCnet) to cater for MISC's global banking transactions. 12 MISC'S 9th VLCC BUNGA KASTURI EMPAT IS NAMED MISC's 9th VLCC. to bridge the gap between what the academic institution is offering and the maritime industry’s needs for qualified personnel and technological advancement to meet the present and future challenges. Yusoff at a naming ceremony in the USC Ariake Shipyard in Japan. . MISC also has two more VLCC newbuildings with USC. services and technologies related to the global halal industry. The vessel was named Seri Bakti by YBhg. 2007 : April 11 MISC’S FIRST SERI B CLASS LNG VESSEL IS NAMED MISC’s first Seri B vessel of its 5th class LNG carriers. operate and manage' JV agreement with SBM for the management of an FPSO tanker facility for Shell Brasil Ltda (the operator of a production sharing contract with 2007 : June 3 FSO ABU RECEIVES FIRST OIL FSO Abu received its first oil from a fixed platform production facility. Tenaga Satu made its maiden call to the Snohvit LNG export facility in Norway. Offshore Sabah. Puan Sri Datin Sri Noraini Mohd.corporate highlights 077 23 MISC AND UTM SIGNS MEMORANDUM OF AGREEMENT FOR PROFESSORSHIP CHAIR MISC and UTM signed a Memorandum of Agreement (MoA) for the establishment of a Professorship Chair in Marine Technology at UTM. The Tenaga Satu. the facility is owned by Malaysian Deepwater Floating Terminal Ltd (MDFT). at a ceremony in Nagasaki. – PETROBRAS and BC-10 Holding Ltda) for a contractual period of 15 years. shipping and offshore industry in Malaysia PETROLEO BRASILEIRO S. Tan Sri Dato Sri Mohd. offshore Terengganu. Bunga Kasturi Empat was named by YBhg.
• • Comprehensive annual reviews with rating agencies. The Group will continue to take a proactive approach in communicating with the investing community by having a dedicated investor relations team to attend to enquiries in an informative. financial conditions. The investor relations programme continues to be an integral part of MISC's commitment towards effective communication with shareholders. namely. The Group participated in four NDRs during the financial year. and other stakeholders can have a balanced understanding of the Group and its objectives. long-term prospects and strategies were elaborated on. Quarterly analysts' briefings where in-depth explanation on the Group's results. meeting fund managers and buy-side analysts. together with quarterly dialogue sessions via in-house meetings/telephone conferences to review announced results.Investor Relations MISC is committed in ensuring timely dissemination of material information that is complete. timely and professional manner and to drive an extensive investors outreach programme. chemical shipping and offshore business units as part of its effort in educating the investing public on the Group's business and operations. Its objective is to ensure fair and accurate representation of the Group. market conditions. Moody's Investor's Service. transparent and credible to the market about its operations. business strategies and future prospects. heavy engineering. Feature presentations at half and full year analysts' briefings on its petroleum shipping. Standard & Poor's and Malaysian Rating Corporation Bhd (MARC). Moving forward presentations from other businesses will be featured to match their developments and accretive initiatives. Regular dialogues with institutional investors and investment analysts via one-on-one meetings and conference calls. MISC's active investor relations efforts include: • Timely announcements of its quarterly results as per Bursa Malaysia's Listing Requirements. During the financial year. so that existing and potential investors can make properly informed investment decisions. Participation in International Investment Conferences and NonDeal Roadshows (NDRs) for both Equity and Fixed Income markets. investors and the investment community at large and to maintain high standards of corporate governance. • • • .
extensive information about the Group’s performance and activities can be obtained from its Annual Reports and website – Dato' Shamsul Azhar bin Abbas President/Chief Executive Officer Mr. Such efforts will be continuously enhanced to maintain the Group's corporate credibility and to strengthen investor confidence with greater corporate transparency. Investor Relations www. Michael Ting Sii Ching Vice President. MISC aims to build and maintain improved transparency with the investing community by keeping the communication channels open and being more accessible. The Group's "Corporate Disclosure Policies and Procedures" identify the following Management Personnel responsible for Investor Relations Activities.investors relations 079 In line with the efforts for greater transparency.relations@miscbhd. Finance Ms. stakeholders and bond holders.com.com . Adelene Alvisse Senior Manager. Enquiries about the Group can be directed to: investor.misc. Corporate Planning and Development Pn.my The Annual Reports are sent to shareholders. Noraini Che Dan Vice President.
The greatest success is to discover pathways that others do not seek. we act as Value Practitioners. thinking beyond to move ahead. technology transfers and many more hands-on training modules that help build our strength of will. we assess prospects like mental surveyors. equipping ourselves with capability building. To pursue different yet untapped pathways. As a global energy transportation leader. .
we have fostered a learning culture in MISC. the second round of the programme was launched in early 2007. Corporate Development Programmes Executive Development Programme (EDP) First Line Managers Business Management Excellence Managing Motivation Performance Improvement (MMPI) Management Development Programme (MDP) Insead – Senior Management Development Programme (SMDP) Leadership Performance Management Programmes Managing Your Career Managing Career Development Leadership in Service Excellence Leadership Dimension in Action Personal Renewal Workshop Value of Integrity Strategic Innovative Leadership Leadership Coaching Skill for Impact Influencing Your Results Strategic Management & Business Intelligence These ongoing programmes are designed to ensure readiness of the leaders to assume higher positions and also to equip them with necessary skills to outperform. and 36 Mentees. People Development in MISC continues to focus on the Triple Plus element as outlined in our Corporate Agenda to be a Global Champion: involving 25 Managers and above who have volunteered to be Mentors.people development 082 People Development Sustaining the Growth of Quality Human Capital Our people are the primary asset of the Group. where there is a passion for the sharing of knowledge and the establishment of developmental relationships. The second round of the programme will run through till 2009. The Corporate Development Programmes have been incorporated as MISC Career Management Framework. The Mentoring Programme has contributed to the increase of the quality of our human capital through knowledge sharing. Ongoing Leadership Programmes MISC continues to provide the following training and development programmes for staff in order to increase their leadership potential: . 1. Through the 2 year programme. and the sharing of experience and insights between the current and future leaders of the company contributes to the overall development of the staff on a personal as well as professional level. Leadership Development Mentoring: Inspiring the development of future leaders With the successful implementation of the pilot Mentoring programme in late 2006. They act as the engine of growth that propels MISC in its journey towards Global Championship. The long-term objective of Mentoring is to support the triple plus elements especially in leadership development and changing the mindset of MISC staff. MISC staffs are in a lifelong process of self-development. To ensure that MISC continues to have an abundant pool of leaders. sustaining the development of human capital is a vital aspect of the Group’s strategy to achieve our vision of being a preferred provider of world-class maritime transportation and logistics services.
The Professorship Chair will be tasked to bridge the gap between what the academic institution is offering and the maritime industry's needs for qualified personnel and technological advancement to meet the present and future challenges. available 2. build partnerships and showcase MISC as the preferred employer of choice. Committed. Mindset and Behaviour Change Mindset and behaviour change of employees is a prerequisite to drive the organisation's aspiration to become a Global Champion by 2010 aligning to the Corporate Agenda. the MISC team of experts rose to the challenge and have thus further developed their expertise in deepwater constructional engineering. Reliable Our brand implementation exercise is a synchronised internal and external enhancement effort. and a collaborative effort with Des Norske Veritas (DNV). This database captures the information on ongoing projects. Detailed engineering design by SBM in Holland and Monaco was done with a provision for technology transfer for trainees from MISC and MMHE. In order to measure the level of mindset and behaviour of all levels of staff within MISC group. Value Practitioner Living the Brand – Proactive. MISC has added two additional capability initiatives to our corporate agenda: resources and capabilities. FPSO Kikeh was made possible through the smart partnership between MISC. MDFT’s successful construction of Malaysia's first deepwater FPSO. . with the findings providing better understanding of the current mindset level at MISC. relevant agencies and institutions in Malaysia. we continued our efforts of last year. SBM and MMHE. To complement the Professorship Chair. During the year. MISC and MMHE. There will be another mindset survey which is planned sometime in March / April 2008 to assess the mindset at all levels and to ensure all staff share the same aspirations of the Group and ready to brave the challenges of becoming a Global Champion. pilot capability efforts in FMS and MMHE. This sharing of technology mega structural effort by PETRONAS. business building. facilities.people development 083 Understanding the crucial need for capability building to increase maketability and competetiveness. strategic planning. Capability Building Developing local capability is crucial in keeping the Group on par with the competition as we explore new frontiers in the industry. building human capital capabilities via the following – critical institutional capabilites identification which include leadership performance. 3. Managers and Senior Management level to identify symptoms/root causes. MISC has sponsored the development of Marine Technology Research and Development Database at UTM. Enhancing Research and Development MISC and UTM signed a Memorandum of Agreement (MoA) for the establishment of Professorship Chair in Marine Technology at UTM. Made possible via a technology transfer between MMHE and SBM. Task Forces and Focus Groups were formed comprising of Executives. The exercise encourages everyone at MISC to share ideas. which would benefit the maritime sector in Malaysia. It is hoped that the establishment of the Chair would further enhanced the research in Maritime Technology. MISC Employee Tracking Survey (METS) 2006 survey was carried out from May till June. issues and intervention plans. fleet management and maritime management. Technology Transfer through Smart Partnerships MISC/SBM JV. marked a new high for MISC.
This year. a total of 193 employees were awarded the 35. we recognise the crucial part played by our employees. During the past year. We also saw 21 employees receive the MISC Retirement Awards. a total of 193 Work-Life Balance : Body. MISC staff participated in various internal and external sporting events: employees awarded People Highlights Mini Sports Day World Maritime Day Sports Carnival PETRONAS Family Carnival Kuala Lumpur Hockey League Selangor Premier Football League PETRONAS’ Sports and Recreational Club Mini Sports Day . the staff of ALAM and AET.people highlights 084 Celebrating Partnerships : A tradition of recognition In MISC’s journey towards success. all of whom have served MISC well throughout their years with the Company. the people who are the backbone of the entire organisation. 25. We believe that strong partnerships within the Group is fostered not only through working relationships but through outside activities such as sports. 30. Although the awards can never compare with the dedication and hard work that our people has put into the growth of the Group. games as well as community services. 20 and 15 years long service awards respectively. the celebration is our small way of thanking our employees and recognising the positive contributions that they have made to the Group. Mind and Spirit MISC cares about work-life balance and promotes physical and mental development in support of their professional development. This year also saw the Long Service Awards create another milestone as we included in our celebrations. in continuing with our tradition of celebrating our partnership with loyal and dedicated employees.
the creation of the Education Excellence Awards helps in developing and strengthening the bond between MISC and thepeople behind the Corporation. as well as to their family members for their encouraging support. appreciating the outstanding achievement of the staff children. . by recognising the dedication and contribution of our people and at the same time. The award celebrates the achievements of the children of MISC staff in their UPSR. staff and their families. Now in its third year. It is our way of saying celebrating the achievements of the children of MISC staff 'thank you' to our staff for their continual commitment and dedication. As part of the Corporation’s continuous effort to strengthen and encourage strong partnerships between the Management and the staff. PMR and SPM examinations. MISC annually holds the Education Excellence Award.people highlights 085 Education Excellence Award : Strengthening closer relationships between the Management. the youth of the nation.
FMS’s LTIF rate recorded an improvement of 27% whilst TRCF improved by 14% as compared to last year's. The Health. and an impressive 37% improvement in Total Recordable Case Frequency (TRCF) MISC is determined in sustaining its future growth through expanded capabilities and targeted innovations to rise above its competition for a greater global prominence. and petroleum tankers. Safety & Environment (HSE) fraternity within MISC Group distinctively contributed towards this notion as reflected in the HSE Performance for Financial Year (FY) 2006/2007. Meanwhile. At the forefront of the operations in maritime transportation. LNG. MISC Fleet Management Services (FMS) and AET Shipmanagement have both shown significant progress in the reduction of injuries to those onboard the containerships. collectively. MISC achieved a marked improvement of 23% for Lost Time Injury Frequency (LTIF). chemical. Safety and Environment MISC achieved a marked improvement of 23% for Lost Time Injury Frequency (LTIF). In assessing the performance of the current year against FY2005/2006. and an impressive 37% improvement in Total Recordable Case Frequency (TRCF) – a laudable achievement by each OPU’s HSE entity and its management.health. AET's LTIF for . For the FY2006/2007. safety and environment 086 Health. along with the guidance and championing of initiatives complemented by Corporate HSE (CHSE).
13 ships had maintained 3-year ZIZA Safety Performance. safety and environment 087 FY2006/2007 showed a significant 36% improvement against FY2005/2006. The FMS Safety Campaign was launched on 3 April 2006 with the slogan 'Zero Incident Zero Accident (ZIZA) – Make It Safe in MISC'. and ISM Code on Safety & Environment. One of the objectives of the campaign is to sustain the safety culture onboard all ships. Safety and Environment protection to meet the industry demand and expectation. FMS also demonstrated proactive values in sustaining high quality levels and conformance to HSE legal requirements as adopted by International and National Regulators. including the utilisation of HSEMS Self Assessment Chart and external feedbacks. . evaluations and reviews of FMS HSE performance. Internal analysis. Partnership. 7 ships maintained 2-year ZIZA Safety Performance and 13 ships achieved 1-year ZIZA Safety Performance. Through the 'Ziza Campaign'. The core values define the serious commitment for continual improvement on Health. All ships will eventually be required to implement the recommended course of actions as promulgated by FMS. besides the Tanker Management and Self Assessment (TMSA) guidelines and other marine-related requirement. On the other hand. and the quarterly issue of ZIZA Bulletin. namely Excellence. The rebranding has brought about four new core values. This was achieved through the management system standards of ISO on Environment & Quality. whereas its TRCF revealed a massive 53% improvement. Safety Advisories and Safety Reminders have been introduced as communication tools for quick information sharing amongst the MISC seafaring community. provide the avenues for FMS towards global leadership in ship management. New initiatives were introduced throughout the campaign to mitigate risks at an 'As Low as Reasonably Practicable' (ALARP) level. Responsibility and Innovation. In addition to the Safety Alerts. AET ascertained its proactiveness by engaging in ISO 9001 and ISO 14001 in a move to further enhance high quality standards and compliance to international and national requirements on HSE. During the year under review. publication of safety handbooks and safety posters. Programmes under the campaign include safety incentives to ship staff. The MISC Fuel Efficiency Campaign was launched in August 2006 with the objectives of fuel-saving measures and reducing environmental pollution.health. Analysis and findings from investigations are shared with all staff and crew to heighten their safety awareness with the lessons learnt. The customers’ safety performance measurement instruments such as TMSA are guidelines for FMS’ continuous improvement and focus on customers’ HSE expectations. AET witnessed an exciting change with the rebranding exercise that reflects its milestones and successful achievement from a regional to a global player in FY2006/2007.
085. has established hazard management process and action plans that incorporate high degree of safety design integrity to support the entire construction phase in Keppel Singapore and the expected operations conditions in offshore Brazil. 7. Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE)’s LTIF rating for FY2006/2007 showed an improvement of 13% against FY2005/2006. MMHE had also embarked on the Respiratory Protection Awareness Month (RPAM). which produce airborne contaminants that have potential adverse health effects. whilst its TRCF was at an all time high of 52% improvement.5 million manhours worked with zero LTI was achieved for Kikeh DTU Spar project while the Kikeh FPSO project accomplished more than 7. The LTIF rating for projects and asset management under the Offshore Business Unit (OBU) performed well considering there was only one LTI case for FY2006/2007. Meanwhile. The RPAM programme was targeted on employees involved in activities such as welding. A total of 28 in-house courses were conducted involving 2. The objective is to get greater involvement from the Line Management in UCUX programme and enforcement of Safety Rules and Regulations at site through SAC/SU. OBU.5 man/days by internal and external instructors. the TMSA approach was also utilised to allow the identification of comprehensive HSE requirements as well as the enhancement of existing policies and frameworks in tandem with the eight elements of the HSEMS. performed tank cleaning and disposal of sludge at the Johor anchorage for the recently purchased three old crude oil tankers. in February 2007. namely the Health and Environmental Bulletins.2 million manhours worked with zero LTI. 5. TRCF marked an impressive 40% against the past year’s. for promulgation to its fleet of vessels in order to promote Health and Environmental awareness to all onboard. safety and environment 088 AET made the most of its HSE Management System (HSEMS) Self Assessment Chart gap analysis study as a tool and guiding principle to be a global leader in petroleum transportation. an Occupational Health Doctor and respiratory protection equipment experts. Health. together with safety talks at project sites delivered by the Quality. Similar to FMS. Safety & Environment (QHSE) department. The above tasks were completed in compliance with all DOE requirements. painting and blasting. MMHE had 10 sessions of roadshow on their 'U-See U-Act' (UCUX) programme since April 2006 and the 'Safety Advisory Chit / Summonses' (SAC/SU) had also been successfully conducted in the month of February & March 2007. AET has established two electronic bulletins. The participants were from foreman level and above. The FPSO Project BC 10. The programme included health talks by an Industrial Hygienist.407 attendees and 2. another Joint Venture with SBM. To further complement the gap analysis study. together with MMHE as its contractor.health.284 .
Presented to the best workshop. including an oil spill drill conducted at waterfront (sea) of Dry Dock 2. Evacuation. An award was also received from Sarawak Shell Berhad for the completion of E11PB project with Zero LTI for more than one million manhours worked. safety and environment 089 employees of subcontractors attended the MMHE HSE induction/ refresher courses in line with the mandatory requirement prior commencing work in MMHE. In addition. A total of 22 drills were conducted to continuously test on the effectiveness of the emergency response. project. which include the development of their Drug & Alcohol policy that entailed a Drug & Alcohol screening for all new recruitment and existing staff.health. Journey . MILS had undertaken several new initiatives to mitigate HSE risks. After attaining a significant improvement in FY2005/2006. Several activities were held such as: • QHSE Week 2006 Best Awards. and division that managed to fulfill all the HSE criteria for HSE effort and management • QHSE exhibition participated by the various government bodies and private agencies and suppliers • Blood donation drive by MMHE. but also the physical and mental fitness of each participant MMHE received a company-wide certification of ISO 9001:2000 from Lloyd's Register Quality Assurance Ltd (LRQA) on 29 October 2006. The programme consisted of Vehicle Management Training. safety. 'Work Given-Out' staff (those employed through Manning Agencies) and subcontractor workers • QHSE talks by Occupational Health Doctor including various authorities • QHSE quiz participated by 18 teams from all MMHE’s business/service units • HSE Explorace carried out for the first time in MMHE that tested not only the knowledge and skills on health. Safety and Environment to the MMHE community. A QHSE Week 2006 was held from 9th to 15th December 2006 with the objective to provide awareness on Quality. and environmental issues. MISC Integrated Logistics Sdn Bhd (MILS) repeated its remarkable track record in FY2006/2007 with a marked improvement of 54% for the LTIF whilst TRCF was improved by 42% as compared to last year. Johor and Kuantan respectively. Health. Zero Fatality Campaign' was also carried out with the Road Transport Safety (RTS) training for sub-contractors at Penang. a 'Zero Accident. fire and rescue drills were conducted on a monthly basis with the expectation to maintain emergency response team’s state of preparedness.
CHSE unit has progressed remarkably well advancing from establishing the alignment towards PETRONAS HSE standards and requirements. ALAM's guidelines were also taken up to provide as samples for other IPTS. On top of that. and last but not least. Road Safety Talk.Bhg. The move to effect the dialogue session is a showcase . including theft and robbery. With the end in mind to sustain the future growth of HSE through expanded capabilities and targeted innovations. which consists of Defensive Driving Training. In the area of Contractor Management. There was a considerable progress in the HSE Performance of Akademi Laut Malaysia (ALAM) for FY2006/2007 in comparison with FY2005/2006. ALAM's first ever ‘Hazards Register’ was successfully documented. Basic First Aid. Fire Fighting and MILS emergency procedure. Institusi Pengajian Tinggi Swasta (IPTS) by the Melaka state government via Jabatan Keselamatan dan Kesihatan Pekerja Negeri Melaka. In just two years upon its inception. ALAM-wide "Basic Risk Factors" Survey in which findings were to be used for the next Financial Year HSE Plan.health. Basic HSE. whereby an improvement of 14% was recorded for LTIF.g Drug Test. MILS also had the Safety Passport programme rolled-out at Port Klang. Accreditations by SIRIM for OHSAS 180001 & EMS 140001. Melaka and Kerteh. conducted the first ever Fire Drill involving BOMBA. and from Lloyd's for ISO 9001:2000 were received accordingly for all MILS' regional and administrative offices nationwide. to a more proactive role in ensuring that all initiatives and targets for all OPUs are met. Championing efforts at the corporate level. (DOSH) Malaysia. HSE contractors' audits were also conducted to monitor the implementation of the Contractor Management initiative. CHSE has provided stewardship and support for several programmes at HQ and down at the operations level. ALAM had undertaken several new initiatives such as ALAM-wide onsite HSE Inspection where a total of 12 inspections were completed. ALAM was cited as a role model in recognition of its 'Drug/Alcohol Abuse Management' at Management. ALAM received the Special Award for the first non-plant OPU to effectively implement the HSEMS. Health Talk. The hard work paid off when MILS won the Gold Awards for the 'Anugerah Cemerlang Keselamatan dan Kesihatan Pekerja 2006' from the Department of Occupational Safety & Health. Dato' President. Driver Management and Road Transport Safety modules. safety and environment 090 MILS carried out an initiative educating the contractors and subcontractors alike on the Self Assessment programme via presentation and other means of communication. and that all intervention plans are carried out as intended. several other initiatives were undertaken including the facilitation of a dialogue session between the HSE Managers and Y. etc). and MILS attended the Safety Passport programme. conducted many firsts ever at ALAM with regard to HSE initiatives in order to further improve their HSEMS (e. 132 drivers from Inland Distributors (ID). At the PETRONAS Group HSE Forum 2006 held in Jakarta. Petronas Dagangan Berhad (PDB). Subsequent to the above.
MISC has also undertaken the implementation of a structured and integrated Skill Group Development Programme in HSE. The event which was held at the Lake Gardens on 17th March 2007 helped to promote togetherness at home and also in the workplace as the participation was opened to all staff as well as family members. Now a permanent event in the annual HSE plan. in which there are no holds barred where HSE is concerned. To advocate a healthy lifestyle by exercising regularly. the first ever MISC Walkathon was organised. Safety and Environment together with the MISC Policy Statement on Drug and Alcohol were successfully carried out and disseminated within the MISC group of companies upon completion. such as the Tripod Incident Investigation Methodology. Indoor Air Quality Assessment and the HSE Tier-3 Assurance. Chemical Health Risk Assessment. Paper Recycling. Behavioral Safety and a series of the HSE Excellence workshops. to educate employees on the hazards and effects of drug abuse and the hindrance it posed towards achieving safe and productive work operations. HSE in MISC Group has gone beyond its conservative scope and chartered course in order to become prominent in the global arena. A 'Drug Awareness Campaign' was held in conjunction with the launching of the revised policy. MILS was awarded the Gold Awards for the ‘Anugerah Cemerlang Keselamatan dan Kesihatan Pekerja 2006’ from the Department of Occupational Safety & Health. Revisions of the MISC Policy Statement on Health. Permit-to-Work. Staff under this skill group will benefit from the enhancement programmes designed for the expansion of HSE capabilities within MISC HSE fraternity. . Recognising the effect that HSE Performance has in the bottomline of all businesses and also in securing new business deals. a Blood Donation Drive was conducted under a 'Bring a New Donor Campaign' with the intention to reach out to new donors via the regulars. In its entirety. Hazards and Effects Management Process (HEMP). as a continuation to last financial year’s initiatives to educate MISC staff on HSE Awareness.health. Several training programmes have also been conducted through Institut Teknologi Petroleum PETRONAS (INSTEP) and other external trainers. the leadership and commitment of the MISC management has provided assurance to all stakeholders that HSE risks are mitigated to an 'As Low as Reasonably Practicable' (ALARP) level. Other programmes on the Loss Prevention section include Cancer Awareness. subsequently increasing the percentage of successful donations to 72% in comparison with 55% from the previous drive. (DOSH) Malaysia. safety and environment 091 of HSE leadership and commitment from the Top Management.
MISC & Corporate Social Responsibility Doing Our Part in Community Building . Our open and transparent business practices are a testament of our commitment to operate ethically whilst contributing to the nation’s economic development.MISC & corporate social responsibility 092 Lending our hands to those in need We have over the years implemented and extended our expertise to help build the nation.
We . one in which we approach with pride and confidence that our actions will help map the future of Malaysia's development – both from a professional viewpoint as well as via the provision of a global ready and able workforce. At MISC. For the year.MISC & corporate social responsibility 093 Developing today’s youth for tomorrow’s leaders – MISC’s scholars As we do so. our CSR framework is dedicated towards two main vital MISC agendas – Youth Development and Community Corporate Responsibility. This year also marked a paradigm shift in the way we extend our assistance. where our CSR efforts will provide both qualitative and quantitative long-term growth for the Group. We wish to help prepare them to be more industry ready and adapt to the changes and progression of the job market. have noticed a flux in the current local graduates scenario. our actions improve the quality of life for the people of MISC as well as the community and society at large. It is an ongoing effort on our part. As we envision ourselves to be a maritime nation. we are also committed towards the provision of efficient human capital to support this vision. our focus on CSR was divided into two main areas of development: • Youth Development • Community Corporate Responsibility Our CSR infused business culture During the year. imparting positive market skills and development to university scholars via our 'Navigate Your Career' programme. Youth development is our contribution to both industry sustenance and nation building. and by being in essence a caring corporate citizen. we understand that CSR is beyond philanthropy and public relations. whilst our community efforts are an extension of our caring fortitude as a global player that is still very Malaysian at heart. where there are issues raised in regards to their general lacklustre performance or personality upon graduation. By educating the nation through maritime education and sponsorships. MISC's CSR-related programmes continued to focus on youth development. shareholders and stakeholders alike. We are now looking at developing university scholars into prepared and able 'real world' ready individuals. We see the bigger picture.
Cadet Sponsorship Programme Investment comes in various forms. Its regimented training modules have helped build the Malaysian maritime industry. This continues to be our mission. we embrace the qualitative aspect by empowering our youth with the capabilities and expertise to enjoy a healthy. 3. MISC Education Sponsorship Programme This year. both quantitative and qualitative. In our case. marking a 56% increase in enrolment. our educational funding programmes in human capital Gearing students for the years ahead. our scholastic approach churns a positive spin from qualitative to quantitative economic attributes. The latest additions of the simulation system modules and increase in training berths onboard most MISC ships have also assisted our graduates.6 million to further maintain and equip the academy with the latest technological equipment and facilities. a record number of 378 cadets joined ALAM’s fraternity. we have to play our role. robust international career as a seafarer. both big and small in social development. We play a different part in the scheme of things. ensuring a journey of integrity. ALAM – the region’s nerve centre for maritime excellence From our initial Nautical Cadet Programme in 1979. For the year under review. and to date. Akademi Laut Malaysia (ALAM). which has garnered increased recognition by students. ours is a CSR approach based more on development – educational and personal career development. We believe this is the result of increased interest in the possibilities of a maritime career on the seven seas. more than RM14 million was invested to our Cadet Sponsorship Programme which amounted to a sponsorship of 95% of ALAM's current scholars. Subsequently. ALAM was injected with RM6. A wholly owned subsidiary. 1. parents and affiliates globally. making them industry ready and renowned as some of the most in demand seafarers in the region. Our proactive stance in maritime education continues to lead us to push the need for greater maritime education throughout Malaysia and South East Asia. a large number of Malaysian captains in the industry are ALAM scholars.MISC & corporate social responsibility 094 Youth Development We believe that in order to help build a progressive nation. MISC has spurred on as the current leader in maritime education in Malaysia. During the year. Our incessant drive to build a maritime nation continued with our focus on our very own maritime training academy. has encouraged an upturn in prospective student applications annually. 2. and it is one in which we approach with a sense of pride and accomplishment. The programme is structured to equip the cadets with technological. vision & promise . technical and practical training that will incite excellence in their future work environment. The programme.
online resource centre and practical attachment modules. through the right attitude and persona in the workplace. As a group that has seen Malaysia flourish and bloom. both for children of MISC staff as well as nationwide. The CSR programme is inclusive of road shows. either co-organised by MISC or through other worthy avenues. Transport & Logistics. establishing a global ready team of professionals in the process. Civil Engineering. Our caring fortitude 4. we look forward to further development in the ensuing years. Mechanical Engineering. A 3-part programme – Educate. Navigate Your Career – our latest fundamental CSR infused programme The general tame reputation and volatility in the skilled performance of local entry level graduates into the marketplace has led us to develop a new programme in youth development. . the provision allowed the students to further their education both locally and abroad in courses relevant to MISC’s business such as Naval Architecture. monies as well as educational gifts and provisions were extended to various members of the community and charitable causes. We are proud of our efforts and view each effort as a venture to develop stronger relationships with all. Still in its preliminary stage of development. Institutions of higher learning and maritime-related organisations were also part and parcel of our continual charity programmes. we have devised the 'MISC CSR Programme – Navigate Your Career’. Engage & Expose – ‘Navigate Your Career’ is geared to enhance employment awareness via guidance initiatives to impart soft skills and insights into career opportunities possible Community Corporate Responsibility 2007 saw us continue on with our pledge to extend our hands to the needy. One in which we are hopeful will help boost and encourage a more vibrant and industry ready local graduate workforce. This has led to a dire need for entry level job placements for them with most companies – local and multinational giving top priority to more rounded and well development private tertiary scholars. Marine Engineering. positive Malaysians. we aim to continue to build a thriving nation of proud. We believe that our latest effort in social development will help create a more buoyant local graduate pool in the near future. the programme is set for initial launch in July 2007 in various universities across the nation. On that basis. Malaysian graduates have been citicised as of late for their lack of interpersonal and professional skills.MISC & corporate social responsibility 095 development continued with sponsorships extended to 52 candidates. Selected based on their exemplary performances in education. and it is a role that we take seriously. People are the essence of a country and through our labours. we believe that we play a pivotal role in the country’s development and sustenance. Accounting and Economics. Electrical Engineering. Throughout the year. Offshore Engineering. intellectual. Developed to encourage a mindset change for local undergraduates. This is our part of nation building.
We never lose sight of the bigger picture – the Globe Our mind mapping strategies and Innovator zeal continue to reveal a long universal link across the globe. our ideas have taken flight from paper into a real feasible global master plan. . With partnerships on almost every corner of the earth.
heuwhoe 97 Financial Statements 098 Directors’ Report 104 Income Statements 110 Cash Flow Statements 102 Statement by Directors and Statutory Declaration 105 Balance Sheets 111 Notes to the Financial Statements 107 Statements of Changes in Equity 103 Report of the Auditors .
Principal Activities The principal activities of the Corporation consist of shipowning.930 3. .744 2.025 44.000 respectively as disclosed in Note 2. below) respectively as disclosed in Note 2.700.393. the effects arising from changes in estimates where the residual values of ships were revised resulting in an increase in the Group's and the Corporation's profit for the year by RM159.000 and RM101.464.directors' report 098 Directors' Report The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the Corporation for the financial year ended 31 March 2007.896. Results Group Corporation RM'000 RM'000 Profit for the year Attributable to: Equity holders of the Corporation Minority interests 2.700.100.3(h)(ii) to the financial statements. and b. There have been no significant changes in the nature of the principal activities during the financial year. transaction or event of a material and unusual nature other than: a.800.852.000 and RM233.744 – 3. other activities related to shipping services and owning and operating offshore floating services.744 There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements.896.000 (including the effects arising from changes in estimates as disclosed in b. the results of the operations of the Group and of the Corporation during the financial year were not substantially affected by any item.4 to the financial statements. In the opinion of the directors.700. the effects arising from the changes in accounting policies due to the adoption of the new and revised FRSs which has resulted in an increase in the Group's and the Corporation's profit for the year by RM178.905 2. ship operating.930 3. The principal activities of the subsidiaries are described in Note 37 to the financial statements.
or with a company in which he has a substantial financial interest.975 368. Since the end of the previous financial year. nor at any time during that year. paid on 30 August 2006 In respect of the financial year ended 31 March 2007: Interim tax exempt dividend of 10 sen per share. . did there subsist any arrangement to which the Corporation was a party. the following tax exempt dividend will be proposed for shareholders' approval in respect of the financial year ended 31 March 2007: RM'000 Final tax exempt dividend of 20 sen per share 743. if approved by the shareholders.991 At the forthcoming Annual General Meeting.directors' report 099 Dividends The amount of dividends paid by the Corporation since 31 March 2006 were as follows: RM'000 In respect of the financial year ended 31 March 2006 as reported in the directors' report of that year: Final tax exempt dividend of 20 sen per share. whereby the directors might acquire benefits by means of the acquisition of shares in or debentures of the Corporation or any other body corporate. Directors The names of the directors of the Corporation in office since the date of the last report and at the date of this report are: Tan Sri Dato Sri Mohd Hassan bin Marican Dato' Shamsul Azhar bin Abbas Dato Sri Liang Kim Bang Harry K.966 The financial statements for the current financial year do not reflect this proposed dividend. alternate to Dato' Dr Wan Abdul Aziz bin Wan Abdullah) (resigned on 1 January 2007) Directors' Benefits Neither at the end of the financial year. Menon Dato' Halipah binti Esa Nasaruddin bin Md Idris Dato' Kalsom binti Abd Rahman Dato' Dr Wan Abdul Aziz bin Wan Abdullah Dato' Ibrahim Mahaludin bin Puteh Tan Sri Dato' Seri Dr Hj Zainul Ariff bin Hj Hussain (appointed on 14 September 2006) (appointed on 10 May 2007. will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 March 2008. paid on 22 December 2006 727. no director has received or become entitled to receive a benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed salary of a full–time employee of the Corporation as shown in Note 7 to the financial statements) by reason of a contract made by the Corporation or a related corporation with any director or with a firm of which he is a member. Such dividend.
Directors' Report (cont'd)
According to the register of directors' shareholdings, the interests of directors in office at the end of the financial year in shares in the Corporation and its related corporations during the financial year were as follows: Number of Ordinary Shares of RM1 Each 31 March 1 April 2006 Bought Sold 2007 The Corporation Direct Dato Sri Liang Kim Bang Indirect Dato Sri Liang Kim Bang Fellow Subsidiary – PETRONAS Dagangan Berhad Direct Tan Sri Dato Sri Mohd Hassan bin Marican Fellow Subsidiary – PETRONAS Gas Berhad Direct Tan Sri Dato Sri Mohd Hassan bin Marican Dato' Kalsom binti Abd Rahman Nasaruddin bin Md Idris Fellow Subsidiary – KLCC Property Holdings Berhad Direct Tan Sri Dato Sri Mohd Hassan bin Marican
5,000 – 3,000
– 1,000 –
– – –
5,000 1,000 3,000
None of the other directors in office at the end of the financial year had any interest in shares in the Corporation or its related corporations during the financial year.
Other Statutory Information
a. Before the income statements and balance sheets of the Group and of the Corporation were made out, the directors took reasonable steps: i. to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and
ii. to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary 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 which would render: i. the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and of the Corporation inadequate to any substantial extent; and
ii. the values attributed to the current assets in the financial statements of the Group and of the Corporation misleading. c. At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence to the existing method of valuation of assets or liabilities of the Group and of the Corporation misleading or inappropriate.
Other Statutory Information (cont'd)
d. At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements of the Group and of the Corporation which would render any amount stated in the financial statements misleading. e. As at the date of this report, there does not exist: i. any charge on the assets of the Group or of the Corporation which has arisen since the end of the financial year which secures the liabilities of any other person; or
ii. any contingent liability of the Group or of the Corporation which has arisen since the end of the financial year. f. In the opinion of the directors: i. no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which will or may affect the ability of the Group or of the Corporation to meet their obligations 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 the financial year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the Corporation for the financial year in which this report is made.
Significant events during the financial year are disclosed in Note 40 to the financial statements.
The 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 dated 10 May 2007.
Tan Sri Dato Sri Mohd Hassan bin Marican
Dato' Shamsul Azhar bin Abbas
statement by directors and statutory declaration
Statement by Directors
Pursuant to Section 169(15) of the Companies Act, 1965
We, Tan Sri Dato Sri Mohd Hassan bin Marican and Dato' Shamsul Azhar bin Abbas, being two of the directors of MISC Berhad, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 104 to 189 are drawn up in accordance with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the Group and of the Corporation as at 31 March 2007 and of the results and the cash flows of the Group and of the Corporation for the year then ended. Signed on behalf of the Board in accordance with a resolution of the directors dated 10 May 2007.
Tan Sri Dato Sri Mohd Hassan bin Marican
Dato' Shamsul Azhar bin Abbas
Pursuant to Section 169(16) of the Companies Act, 1965
I, Noraini binti Che Dan, being the officer primarily responsible for the financial management of MISC Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 104 to 189 are in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960. Subscribed and solemnly declared by the abovenamed Noraini binti Che Dan at Kuala Lumpur in Wilayah Persekutuan on 10 May 2007
Noraini binti Che Dan
Before me, Haron Hashim (W 128) Commissioner of Oath
report of the auditors
Report of the Auditors to the Members of MISC Berhad
(Incorporated in Malaysia)
We have audited the financial statements set out on pages 104 to 189. These financial statements are the responsibility of the Corporation's directors. It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility to any other person for the content of this report. We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. In our opinion: a. the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of: i. the financial position of the Group and of the Corporation as at 31 March 2007 and of the results and the cash flows of the Group and of the Corporation 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 Corporation and by its subsidiaries of 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 of which we have not acted as auditors, as indicated in Note 37 to the 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 of the Corporation are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements 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 the consolidated financial statements and did not include any comment required to be made under Section 174(3) of the Act.
Ernst & Young AF: 0039 Chartered Accountants Kuala Lumpur, Malaysia 10 May 2007
Habibah bte Abdul No. 1210/05/08(J) Partner
419.131 2.221.822.779.178 (18.7 75.981 – 1.813) 532.757) (491) 28.197) 1.700.584.9 2.279) 1.901) – – 1.427 (347.573 48.945 (7.679 (4.852.135) – – 3.028.080 (7.326.190 (784.345 (909.559 303.482 (3.981 9 5 8 4 3 11.896.473.051) 3.029 2.870.700.900.355.700.325 999.602 3.824.981 4.622.912 (376.930 2006 RM'000 (restated) 10.744 – 3.915 3. .744 1.310 (33.584.896.588) 3.747 436.079 (18.029 202.404 11.956 (348.198) 3.792 (30.224) 3.121 202.064) 3.190) 2.746.558) 796.584.421.905 2.198.398) 15.879 (46.747.325 383.359 (391.669 131.830 2.822.930 Basic earnings per share attributable to equity holders of the Corporation (sen) 10 76.income statements 104 Income Statements for the year ended 31 March 2007 Group 2007 RM'000 Note Revenue Cost of sales Gross profit Gain on disposal of ships Other operating income General and administrative expenses Operating profit Finance costs Share of (loss)/profit of associates Share of profit of jointly controlled entities Profit before taxation Taxation Profit for the year Attributable to: Equity holders of the Corporation Minority interests 2.380) 2.744 – 3.930.700.744 The accompanying notes form an integral part of the financial statements.025 44.603.870.602 Corporation 2007 RM'000 2006 RM'000 (restated) 4.250.
867 1.919 2.867.352.290 139.505.500 1.balance sheets 105 Balance Sheets as at 31 March 2007 Group 2007 RM'000 Note 2006 RM'000 (restated) Corporation 2007 RM'000 2006 RM'000 (restated) Non-Current Assets Ships Property.240 25.772 Current Assets Inventories Trade and other receivables Marketable securities Cash.199 851 735.893.867.253.963.142 Net Current Assets/(Liabilities) .141 – 15.679 19.851.755.615 495.618 2.314 – 50.632 8.410 90.176 – 1.542 609.647.092 38.974.352.176 1.358 236.204.037.290.587 3.241.585 – 12.235.868 3.203.379 3.577 1.098.435 – 5.435 103.122.151 22.424 – 2.721.600 3.270.788 (743.021 827.564 4.874 85.800 – 3.012.015 4.441 7.723 97.540.679.500 – 6.515 321.117.943 53. plant and equipment Investment properties Intangible assets Investments in subsidiaries Investments in associates Investments in jointly controlled entities Other investments Deferred tax assets 12 12 13 14 15 16 17 18 29 21.491 3.259 – – 51.252 2.685 503.205.290 2.716.670 8.770 53.969 5.116 1.107 243.507. deposits and bank balances Non-current assets classified as held for sale 19 20 22 23 24 262.974.467 843.703 851 2.592.568 – 11.065 2.587 487.748 3.090 1.034.546 – 3.914) 14.227 49.800 1.815 2.041.145 24.767.499.670.217.527 1.131 49.077 2.476 235.713.941 23.974 1.425.023.370 13.500 1.256 172.546 Current Liabilities Trade and other payables Borrowings 25 26 2.700.
797.540 – 13.828 1.049 10.422 13.156.911 18.013 24. .752.639.719.815 3.206 8.366 14.435 18.140 64.880.121.828 127.892 5.348.253.161 241.301.919 3.752.686 18.094.423 12.183 25.719.719.755.142 Non-Current Liabilities Borrowings Deferred tax liabilities The accompanying notes form an integral part of the financial statements.440.955 18.719.828 2.206 284.balance sheets 106 Balance Sheets as at 31 March 2007 (cont'd) Group 2007 RM'000 Note 2006 RM'000 (restated) Corporation 2007 RM'000 2006 RM'000 (restated) Equity Equity attributable to equity holders of the Corporation Share capital Other reserves Retained profits Minority Interests 27 28 3.284 14.828 1.098.540 – 3.905.073.094.910 67.087.997.505.596 26 29 6.506 13.527 3.602 13.161 – 14.309.161 – 3.
232 (194) (585.719.423 12.555.882 – – – – – – – – (460.517) 18.914 – – – – – – – – 1.955 15.348.892 .270.156.399.882) – – – 106.501 (586.575 – (14.206 275.237.822.686 15.573 2.114.095) – 12.440.870.849.893) (3.528 (1.844.032) (1.consolidated statement of changes in equity 107 Consolidated Statement of Changes in Equity for the year ended 31 March 2007 <-----.484 (4.372 (601.517) 284.078) – – – 2.859.095) – 18.955) (607.161) 1.290 1.822.859.235) 11.087.123) – (585.859.454) 48.851 (586.753.573 2.078) – (607.450 – (1.114.789 (1.454) – (15.454) – – (15.045 17.Attributable to Equity Holders of the Corporation ------> Share Capital <-Non-distributable-> Distributable Ordinary Share Other Retained Shares Premium Reserves Profits Total RM'000 RM'000 RM'000 RM'000 RM'000 Minority Interests Total Equity Note At 1 April 2005 As previously stated Effects of adopting FRS 121 At 1 April 2005 (restated) Currency translation differences: Group Associates Jointly controlled entities Transfer from reserves to retained profits Net expense recognised directly in equity Profit for the year Total recognised income and expense for the year Bonus issue Dividends Acquisition of a subsidiary At 31 March 2006 11 28 28 28 28 28 RM'000 RM'000 1.280 2.123) (21.882 – 460.602 2.161) 1.128.988) (3.096.577) 2.955.025 – (1.521 (15.232 (194) (585.914 – – 3.032.748.852.806 1.029 32.756.279.955 2.963) 270.123) 2.554 – – – – 21.577) – (600.232 (194) (600.303.914 – 1.828 460.615) 1.955 21.082 17.221 2.
325.828 – (1.121.372) 207 996 (1.806.196) 284.156.892 65 18.169) – 45.639.650 18.596 – (1.719.271 298.828 – – – – – 23.206 65 18.103.273 2.932 44.087.880.025 2.169) – (1.896.168) (45.966) – 18.156.422 The accompanying notes form an integral part of the financial statements.Attributable to Equity Holders of the Corporation ------> Share Capital <-Non-distributable-> Distributable Ordinary Share Other Retained Shares Premium Reserves Profits Total RM'000 RM'000 RM'000 RM'000 RM'000 Minority Interests Total Equity Note At 1 April 2006 As previously stated Effects of adopting FRS 121 At 1 April 2006 (restated) Effects of adopting FRS 3 Currency translation differences: Group Associates Jointly controlled entities Transfer to reserves from retained profits Net expense recognised directly in equity Profit for the year Total recognised income and expense for the year Dividends Acquisition of subsidiaries At 31 March 2007 11 28 28 28 28 28 RM'000 RM'000 3.932 – – 24.649.227.052.957 – – – – – – – – – – 3. .686 – 284.273.882 (14.324) 18.440) 207 996 (1.consolidated statement of changes in equity 108 Consolidated Statement of Changes in Equity for the year ended 31 March 2007 (cont'd) <-----.237) – (1.114.001) – – – (1.623) 12.020 17.797.169) 2.454 18.089.438 1.556 1.955 65 12.348.351.930 1.435 (1.440.828 – 3.025 1.168 – (1.764) (95.161 24.227.272.440.719.686 17.168) 2.096.272.273.372) – – 207 996 – – – – (45.730) (95.857 (1.932 – 24.001) – – – – – 1.309.719.247.579.348.088.837 (17.905 69.248.272.852.719.150 2.423 – 2.852.966) – 13.423 13.578 (1.096.911 (1.828 – 18.104.22.168) 2.324) 241.856 (1.693 (1.
952 – (1.284 12.029) (498.301.966) 10.114. .096.096.981 1.399.859.652 – – 1.029) – (498.587 (1.095) 8.049 802.037.905.statements of changes in equity 109 Statements of Changes in Equity for the year ended 31 March 2007 Share Capital Ordinary Shares RM'000 <-.355 220.804) 8.029) – – 1.157) (946.206 (946.882 – – – – (460.719.719.719.206 9.506 12.229.Non-Distributable --> Distributable Share Other Retained Premium Reserves Profits RM'000 RM'000 RM'000 Note Note At 1 April 2005 As previously stated Effects of adopting FRS 121 At 1 April 2005 (restated) Currency translation differences Net expense recognised directly in equity Profit for the year Total recognised income and expense for the year Bonus issue Dividends At 31 March 2006 At 1 April 2006 As previously stated Effects of adopting FRS 121 At 1 April 2006 (restated) Currency translation differences Net expense recognised directly in equity Profit for the year Total recognised income and expense for the year Dividends At 31 March 2007 11 28 28 11 28 28 Total RM'000 1.584.217 1.157) (946.094.989 1.859.029) 1.161 The accompanying notes form an integral part of the financial statements.114.185 13.049 9.874.828 – – – – – 3.536.540 3.036 (733.719.882 – 460.744 2.859.828 460.384) 9.235 (498.700.744 3.981 (1.310 (817.744 (1.094.319.828 – 3.700.157) – 127.584.914 – 3.073.157) – (946.506 – – 3.963.119.571.301.683 (498.882) – – 35.981 1.217 1.032) (1.752.086.700.029) (498.634 13.966) 14.754.584.157) 3.540 (946.095) 13.914 – – – – 1.018 1.914 – 1.073.828 – – – – – – – – – 35.121.
633.370) 2.564 3.969 (187.425.667.873.274.544) (1.217.930.045.711 (11.600 The accompanying notes form an integral part of the financial statements.644) 4.739) 4.600 2.564 10.659.035) 3.116 487.379) 3.047.970 – 1.229 (6.566) 4.425.840) 939.407) (2.107 487.139) 3.123) (901.115 (1.990.148 (7.059.409 735.609. deposits and bank balances 23 30 31 11.969 735.917.775 (46.059.668.425.006 – 939.850.019 (2.cash flow statements 110 Cash Flow Statements for the year ended 31 March 2007 Group Note 2007 RM'000 2006 RM'000 Corporation 2007 RM'000 2006 RM'000 Cash receipts from customers Cash paid to suppliers and employees Cash from operations Taxation paid Net cash generated from operating activities Net cash (used in)/generated from investing activities Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of financial year Currency translation differences Cash and cash equivalents at end of financial year Cash and cash equivalents comprise: Cash.856.006 354.911) (1.217.907.635) (2.116 4.238.348) 2.322 (3.121) (1. .351.021.969 4.630 (3.014) 246.663 (9.640.920.846 (3.600 1.537.352) 1.067) 3.009 (33.373.970 (1.763) 487.607.
incorporated and domiciled in Malaysia. the difference between net disposal proceeds and their carrying amounts is included in profit or loss. On disposal of such investments. Corporate Information The Corporation is a public limited liability company. The principal activities of the subsidiaries are described in Note 37.3. In the Corporation's separate financial statements. Subsidiaries and Basis of Consolidation i. There have been no significant changes in the nature of the principal activities during the financial year. The financial statements are presented in Ringgit Malaysia ("RM") in compliance with FRSs and all values are rounded to the nearest thousand (RM'000) except when otherwise indicated. The functional currency of the Corporation and certain subsidiaries is United States Dollar ("USD"). 50050 Kuala Lumpur. 2. Menara Dayabumi. Jalan Sultan Hishamuddin. the Group and the Corporation had adopted new and revised FRSs which are mandatory for financial periods beginning on or after 1 January 2006 as described fully in Note 2. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group has such power over another entity. other activities related to shipping services and owning and operating offshore floating services. The registered office of the Corporation is located at Level 25. Significant Accounting Policies 2. investments in subsidiaries are stated at cost less impairment losses. 1965 and applicable Financial Reporting Standards in Malaysia ("FRS"). The holding and ultimate holding company of the Corporation is Petroliam Nasional Berhad. At the beginning of the current financial year. The principal activities of the Corporation consist of shipowning. The financial statements of the Group and of the Corporation have also been prepared on a historical cost basis unless otherwise indicated in the accounting policies below.notes to the financial statements 111 Notes to the Financial Statements 31 March 2007 1.2 Summary of Significant Accounting Policies a.1 Basis of Preparation The financial statements comply with the provisions of the Companies Act. . The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 10 May 2007. ship operating. a company incorporated and domiciled in Malaysia. and is listed on the Main Board of Bursa Malaysia Securities. 2. Subsidiaries Subsidiaries are entities over which the Group has the ability to control the financial and operating policies so as to obtain benefits from their activities.
Any excess of the cost of the acquisition over the Group's interest in the net fair value of the identifiable assets. liabilities and contingent liabilities over the cost of acquisition is recognised immediately in profit or loss. liabilities and contingent liabilities represents goodwill.notes to the financial statements 112 Notes to the Financial Statements 31 March 2007 (cont'd) 2. Subsidiaries are consolidated from the date of acquisition. Subsidiaries and Basis of Consolidation (cont'd) ii. The financial statements of the subsidiaries are prepared for the same reporting date as the Corporation. When the merger method is used. and equity instruments issued. and continue to be consolidated until the date that such control ceases. Any excess of the Group's interest in the net fair value of the identifiable assets. Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group. . It is measured at the minorities' share of the fair value of the subsidiaries' identifiable assets and liabilities at the acquisition date and the minorities' share of changes in subsidiaries' equity since then. Significant Accounting Policies (cont'd) 2. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not in control or joint control over those policies. The results of the companies being merged are included as if the merger had been effected throughout the current and previous years. In preparing the consolidated financial statements.2 Summary of Significant Accounting Policies (cont'd) a. transactions and unrealised gains or losses are eliminated in full. The purchase method of accounting involves allocating the cost of the acquisition to the fair value of the assets acquired and liabilities and contingent liabilities assumed at the date of acquisition. Basis of Consolidation The consolidated financial statements comprise the financial statements of the Corporation and its subsidiaries as at the balance sheet date. of the assets given. plus any costs directly attributable to the acquisition. b. the cost of investment in the Corporation's book is recorded at the nominal value of shares issued and the difference between the carrying value of the investment and the nominal value of shares acquired is treated as merger reserve or merger deficit. at the date of exchange. The cost of an acquisition is measured as the aggregate of the fair values. intragroup balances. being the date on which the Group obtains control. Acquisitions of subsidiaries are accounted for using the purchase method. Associates Associates are entities in which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Uniform accounting policies are adopted in the consolidated financial statements for like transactions and events in similar circumstances. liabilities incurred or assumed.
liabilities and contingent liabilities over the cost of the investment is excluded from the carrying amount of the investment and is instead included as income in the determination of the Group's share of the associate's profit or loss in the period in which the investment is acquired. After application of the equity method. the difference between net disposal proceeds and their carrying amounts is included in profit or loss. and a jointly controlled entity is a joint venture that involves the establishment of a separate entity in which each venturer has an interest. Investments in jointly controlled entities are accounted for in the consolidated financial statements using the equity method of accounting as described in Note 2. unrealised gains and losses on transactions between the Group and the associate are eliminated to the extent of the Group's interest in the associate. In the Corporation's separate financial statements. including any long-term interests that.2(b). unless it has incurred obligations or made payments on behalf of the associate. Under the equity method. the share of results is arrived at from the last audited financial statements available and management financial statements to the end of the accounting period. the Group determines whether it is necessary to recognise any additional impairment loss with respect to the Group's net investment in the associate. Any excess of the Group's share of the net fair value of the associate's identifiable assets. On disposal of such investments. investments in associates are stated at cost less impairment losses. The associate is equity accounted for from the date the Group obtains significant influence until the date the Group ceases to have significant influence over the associate. Where the dates of the audited financial statements used are not coterminous with those of the Group. Significant Accounting Policies (cont'd) 2. Associates (cont'd) Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting. investments in jointly controlled entities are stated at cost less impairment losses. the Group recognises its share of such changes. When the Group's share of losses in an associate equals or exceeds its interest in the associate. A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. the difference between net disposal proceeds and their carrying amounts is included in profit or loss. The Group's share of the net profit or loss of the associate is recognised in the consolidated profit or loss. Goodwill relating to an associate is included in the carrying amount of the investment and is not amortised. . In applying the equity method. The most recent available audited financial statements of the associates are used by the Group in applying the equity method. the Group does not recognise further losses. form part of the Group's net investment in the associate. c. On disposal of such investments. in substance. In the Corporation's separate financial statements. the investment in associate is carried in the consolidated balance sheet at cost adjusted for postacquisition changes in the Group's share of net assets of the associate.2 Summary of Significant Accounting Policies (cont'd) b. Where there has been a change recognised directly in the equity of the associate. Uniform accounting policies are adopted for like transactions and events in similar circumstances. Jointly Controlled Entities The Group has an interest in joint ventures which are jointly controlled entities.notes to the financial statements 113 2.
Ships. liabilities and contingent liabilities. it is reviewed for impairment. The carrying amount of the replaced part is derecognised. Plant and Equipment. ships under construction. The directors have not adopted a policy of regular revaluations of such assets and no later valuation has been recorded. The useful lives of intangible assets are assessed to be either finite or indefinite. Other Intangible Assets Intangible assets acquired separately are measured on initial recognition at cost. property. as appropriate. ii. Following the initial recognition. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Property. systems work in progress and construction in progress are stated at cost less accumulated depreciation and any accumulated impairment losses. Subsequent to recognition. Goodwill is not amortised but instead. Goodwill Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of business combination over the Group's interest in the net fair value of the identifiable assets. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset. Intangible Assets i. Long term leasehold and foreshore land of a subsidiary have not been revalued since they were revalued in 1988. goodwill is measured at cost less any accumulated impairment losses. Intangible assets with finite lives are amortised on a straight-line basis over the estimated economic useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. ships. plant and equipment except for freehold land. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at each balance sheet date. Significant Accounting Policies (cont'd) 2. these assets continue to be stated at their original valuation less accumulated depreciation and impairment losses. intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. plant and equipment are initially recorded at cost. only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. and Depreciation All ships. . As permitted under the transitional provisions of IAS 16 (Revised): Property. Plant and Equipment. annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The cost of intangible assets acquired in a business combination is their fair values as at the date of acquisition.2 Summary of Significant Accounting Policies (cont'd) d. property. The useful life of an intangible asset with an indefinite life is also reviewed annually to determine whether the useful life assessment continues to be supportable. Following initial recognition. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.notes to the financial statements 114 Notes to the Financial Statements 31 March 2007 (cont'd) 2. e. Intangible assets with indefinite useful lives are not amortised but tested for impairment annually or more frequently if the events or changes in circumstances indicate that the carrying value may be impaired either individually or at the cash-generating-unit level.
2 Summary of Significant Accounting Policies (cont'd) e. plant and equipment is provided for on a straight-line basis to write off the cost of each asset to its residual value over the estimated useful life. Significant Accounting Policies (cont'd) 2. engines and pushers Drydocks and waste plant 5 – 20 years Remaining useful life 2% – 7% 8% – 15% 10% – 33. . property. useful life and depreciation method are reviewed at each financial year-end to ensure that the amount. Ships under construction.notes to the financial statements 115 2. and Depreciation (cont'd) Freehold land has an unlimited useful life and therefore is not depreciated. plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Depreciation of ships under construction commences from the date of delivery of the ships.3% 10% – 20% 6.3% 10% – 33. Depreciation of investment properties is provided for on a straight-line basis at 2% per annum. Freehold land and building of the Corporation have not been revalued since they were revalued in 1984.3% 15% – 33. at the following annual rates: Ships constructed (including floating solutions assets) Ships purchased Buildings Containers Motor vehicles Furniture. Such properties are measured at cost. including transaction costs. Investment Properties Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. f. Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Depreciation of ships in operation. property. The directors have not adopted a policy of regular revaluations of such assets and no later valuation has been recorded. Any gains or losses on the retirement or disposal of an investment property are recognised in profit or loss in the year in which they arise. if any and the net carrying amount is recognised in profit or loss and the unutilised portion of the revaluation surplus is taken directly to retained profits. Plant and Equipment. Leasehold land is depreciated on a straight-line basis over the period of the respective leases which range from 60 to 99 years.7% – 20% 2% – 10% The residual values. plant and equipment. Property. fittings and equipment Computer software and hardware Plant and machinery Tugboats. Ships. method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the ships. systems work in progress and construction in progress are not depreciated as these assets are not available for use. property. The difference between the net disposal proceeds. Ships.
from the acquisition date.2 Summary of Significant Accounting Policies (cont'd) g. contract revenue and contract costs are recognised as revenue and expenses respectively by using the stage of completion method. the expected loss is recognised as an expense immediately. . other than construction contract assets. inventories. An impairment loss is recognised in profit or loss in the period in which it arises. Construction Contracts Where the outcome of a construction contract can be reliably estimated. If this is the case. An asset's recoverable amount is the higher of an asset's or CGU's fair value less costs to sell and its value in use. the balance is classified as amount due from customers on contracts. h. In assessing value in use. the balance is classified as amount due to customers on contracts. For goodwill. deferred tax assets and non-current assets held for sale. When it is probable that total contract costs will exceed total contract revenue. Goodwill acquired in a business combination is. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then. irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. in which case the impairment loss is accounted for as a revaluation decrease to the extent that the impairment loss does not exceed the amount held in the asset revaluation reserve for the same asset. Significant Accounting Policies (cont'd) 2. the recoverable amount is estimated at each balance sheet date or more frequently when indicators of impairment are identified. contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Where the outcome of a construction contract cannot be reliably estimated. are reviewed at each balance sheet date to determine whether there is any indication of impairment. allocated to each of the Group's CGUs. Impairment of Non-financial Assets The carrying amounts of assets. recoverable amount is determined for the cash-generating-unit ("CGU") to which the asset belongs to. recognised profits (less recognised losses). the asset is considered impaired and is written down to its recoverable amount. Contract costs are recognised as expenses in the period in which they are incurred. that are expected to benefit from the synergies of the combination. If any such indication exists. For the purpose of impairment testing of these assets. unless the asset is carried at a revalued amount. When progress billings exceed costs incurred plus. the asset's recoverable amount is estimated to determine the amount of impairment loss. Where the carrying amount of an asset exceeds its recoverable amount. When the total of costs incurred on construction contracts plus. to reduce the carrying amount of the other assets in the unit or groups of units on a pro-rata basis. The stage of completion is measured by reference to the proportion of contract costs incurred for work performed to date to the estimated total contract costs. recoverable amount is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. recognised profits (less recognised losses). or groups of CGUs.notes to the financial statements 116 Notes to the Financial Statements 31 March 2007 (cont'd) 2. the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. exceeds progress billings.
Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously. Financial Instruments Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instrument. jointly controlled entities and investment properties are stated at cost less impairment losses. iii. there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. Cost is arrived at on the weighted average basis and comprises the purchase price and other direct charges. Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. deposit at call and short term highly liquid investments which have an insignificant risk of changes in value.2 Summary of Significant Accounting Policies (cont'd) h. The carrying amount of an asset other than goodwill is increased to its revised recoverable amount. Other Non-current Investments Non-current investments other than investments in subsidiaries. Marketable Securities Marketable securities are carried at the lower of cost and market value. provided that this amount does not exceed the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. are reported as expense or income. net of outstanding bank overdrafts. i. . unless the asset is carried at revalued amount. Distributions to holders of financial instruments classified as equity are recognised directly in equity. and only if. the difference between net disposal proceeds and the carrying amount is recognised in profit or loss. An impairment loss for an asset other than goodwill is reversed if.notes to the financial statements 117 2. cash and cash equivalents include cash on hand and at bank. i. Increases or decreases in the carrying amount of marketable securities are recognised in profit or loss. ii. raw materials and consumable stores are held for own consumption and are stated at the lower of cost and net realisable value. determined on an aggregate basis. Interest. Inventories Inventories which comprise bunkers. lubricants. dividends and gains and losses relating to a financial instrument classified as a liability. such reversal is treated as a revaluation increase. On disposal of an investment. A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss. j. in which case. Impairment of Non-financial Assets (cont'd) Impairment loss on goodwill is not reversed in a subsequent period. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. Cash and Cash Equivalents For the purposes of the cash flow statements. spares. On disposal of marketable securities. associates. Cost is determined on the weighted average basis while market value is determined based on quoted market values. the difference between net disposal proceeds and its carrying amount is recognised in profit or loss. Significant Accounting Policies (cont'd) 2.
Derivative Financial Instruments Derivative financial instruments are not recognised in the financial statements. interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Non-convertible Cumulative Redeemable Preference Shares ("NCRPS") The NCRPS are recorded at the amount of proceeds received. v. . The NCRPS are classified as non-current liabilities in the balance sheet and the preferential dividends are recognised as finance costs in profit or loss in the period in which they are incurred. Equity transaction costs comprise only those incremental external costs directly attributable to the equity transaction which would otherwise have been avoided. net of transaction costs. viii. Trade and Other Payables Trade and other payables are stated at the fair value of the consideration to be paid in the future for goods and services received. The transaction costs of an equity transaction are accounted for as a deduction from equity. An estimate is made for doubtful debts based on a review of all outstanding amounts as at the balance sheet date. vii. vi.2 Summary of Significant Accounting Policies (cont'd) j. After initial recognition. ix.notes to the financial statements 118 Notes to the Financial Statements 31 March 2007 (cont'd) 2. Significant Accounting Policies (cont'd) 2. Forward bunkers contract: Upon settlement. Bad debts are written off when identified. Equity Instruments Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which they are declared. Interest rate swap contracts: Net differentials in interest receipt and payments arising from interest rate swap contracts are recognised as interest income or expense in the profit or loss over the period of contract. the forward bunkers contract is recognised as expense in the profit or loss. Interest Bearing Loans and Borrowings All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. Financial Instruments (cont'd) iv. Trade and Other Receivables Trade and other receivables are carried at anticipated realisable values. net of tax.
Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction. affects neither accounting profit nor taxable profit. unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences. Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled. unused tax losses and unused tax credits can be utilised. ii. are added to the cost of those assets. The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense over the lease term on a straight-line basis. in which case the deferred tax is also recognised directly in equity. using the liability method. in which case the deferred tax is included in the resulting goodwill or the amount of any excess of the acquirer's interest in the net fair value of the acquiree's identifiable assets. Operating Lease – the Group as Lessor Assets leased out under operating leases are presented on the balance sheet according to the nature of the assets. or when it arises from a business combination that is an acquisition. Classification A lease is recognised as a finance lease if it transfers substantially to the Group all the risks and rewards incidental to ownership. All leases that do not transfer substantially all the risks and rewards are classified as operating leases. deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences. Borrowing costs directly attributable to the acquisition.notes to the financial statements 119 2. Borrowing Costs Borrowing costs comprise debts issuance costs and interest costs. until such time as the assets are substantially ready for their intended use. construction or production of qualifying assets. based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is provided for. Deferred tax is recognised as income or an expense and included in the profit or loss for the period. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. which are assets that necessarily take a substantial period of time to get ready for their intended use.2 Summary of Significant Accounting Policies (cont'd) k. Income Tax Income tax on the profit or loss for the year comprises current and deferred tax. Leases i. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the balance sheet date. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. m. l. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease (Note 2. liabilities and contingent liabilities over the cost of the combination. .2 (q)(vi)). Operating Leases – the Group as Lessee Operating lease payments are recognised as an expense on a straight-line basis over the term of the relevant lease. except when it arises from a transaction which is recognised directly in equity. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. Significant Accounting Policies (cont'd) 2. An up-front payment represents prepaid lease payments and are amortised on a straight-line basis over the lease term. In principle. iii.
notes to the financial statements
Notes to the Financial Statements
31 March 2007 (cont'd)
2. Significant Accounting Policies (cont'd)
2.2 Summary of Significant Accounting Policies (cont'd) n. Provisions Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as finance cost. Provision for warranty is made based on service histories to cover the estimated liability that may arise during the warranty period. Any surplus provision will be written back at the end of the warranty period while additional provision is made as and when necessary. o. Employee Benefits i. Short Term Benefits Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.
ii. Defined Contribution Plans Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into separate entities or funds and will have no legal or constructive obligation to pay further contributions if any of the funds do not hold sufficient assets to pay all employee benefits relating to employee services in the current and preceding financial years. Such contributions are recognised as an expense in the profit or loss as incurred. As required by law, companies in Malaysia make such contributions to the Employees Provident Fund ("EPF"). Some of the Group's foreign subsidiaries also make contributions to their respective countries' statutory pension schemes. iii. Termination Benefits Termination benefits are payable when employment is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits as a liability and an expense when it is demonstrably committed to either terminate the employment of current employees according to a detailed plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. In the case of an offer made to encourage voluntary redundancy, the measurement of termination benefits is based on the number of employees expected to accept the offer. Benefits falling due more than twelve months after balance sheet date are discounted to present value.
notes to the financial statements
Significant Accounting Policies (cont'd)
2.2 Summary of Significant Accounting Policies (cont'd) p. Foreign Currencies i. Functional and Presentation Currency The individual financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The functional currency of the Corporation and certain subsidiaries is United States Dollar ("USD"). The financial statements are presented in Ringgit Malaysia ("RM"), in compliance with FRSs.
ii. Foreign Currency Transactions In preparing the financial statements of the individual entities, transactions in currencies other than the entity's functional currency ("foreign currencies") are recorded in the functional currencies using the exchange rates prevailing at the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not translated. Exchange differences arising on the settlement of monetary items, and on the translation of monetary items, are included in profit or loss for the period except for exchange differences arising on monetary items that form part of the Group's net investment in foreign operation. Exchange differences arising on monetary items that form part of the Group's net investment in foreign operation, where that monetary item is denominated in either the functional currency of the reporting entity or the foreign operation, are initially taken directly to the currency translation reserve within equity until the disposal of the foreign operation, at which time they are recognised in profit or loss. Exchange differences arising on monetary items that form part of the Group's net investment in foreign operation, where that monetary item is denominated in a currency other than the functional currency of either the reporting entity or the foreign operation, are recognised in profit or loss for the period. Exchange differences arising on monetary items that form part of the Corporation's net investment in foreign operation, regardless of the currency of the monetary item, are recognised in profit or loss in the Corporation’s financial statements or the individual financial statements of the foreign operation, as appropriate. Exchange differences arising on the translation of non-monetary items carried at fair value are included in profit or loss for the period except for the differences arising on the translation of non-monetary items in respect of which gains and losses are recognised directly in equity. Exchange differences arising from such non-monetary items are also recognised directly in equity. iii. Foreign Operations The results and financial position of foreign operations that have a functional currency different from the presentation currency ("RM") of the consolidated financial statements are translated into RM as follows: • • • Assets and liabilities for each balance sheet presented are translated at the closing rate prevailing at the balance sheet date; Income and expenses for each income statement are translated at average exchange rates for the year, which approximates the exchange rates at the dates of the transactions; and All resulting exchange differences are taken to the currency translation reserve within equity.
Goodwill and fair value adjustments arising on the acquisition of foreign operations on or after 1 April 2006 are treated as assets and liabilities of the foreign operations and are recorded in the functional currency of the foreign operations and translated at the closing rate at the balance sheet date. Goodwill and fair value adjustments which arose on the acquisition of foreign subsidiaries before 1 April 2006 are deemed to be assets and liabilities of the parent company and are recorded in RM at the rates prevailing at the date of acquisition.
notes to the financial statements
Notes to the Financial Statements
31 March 2007 (cont'd)
2. Significant Accounting Policies (cont'd)
2.2 Summary of Significant Accounting Policies (cont'd) q. Revenue Recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: i. Freight Income Freight receivable and the relevant discharge costs of cargoes loaded onto ships up to the balance sheet date are accrued for in the financial statements.
ii. Charter Income The results of ships employed and voyage charter and that of other services rendered are accounted for on a time accrual basis. iii. Lightering Income Income on lightering charges is recognised on percentage of completion of voyages calculated on a discharge-to-discharge basis. The voyage revenue is recognised evenly over the period from a vessel's departure from its previous discharge point to its projected departure from its next discharge point. iv. Other Shipping Related Income Revenue from services rendered is recognised net of service taxes and discounts as and when the services are performed. v. Construction Contracts Revenue from construction contracts is accounted for by the stage of completion method as described in Note 2.2(g). vi. Rental Income Rental income from investment property is recognised on a straight-line basis over the term of the lease. The aggregate cost of incentives provided to lessee is recognised as a reduction of rental income over the lease term on a straight-line basis. vii. Interest Income Interest income is recognised on an accrual basis using the effective interest method. viii.Dividend Income Dividend income is recognised when the Group's right to receive payment is established. r. Non-current Assets Held for Sale Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset is available for immediate sale in its present condition subject only to terms that are usual and customary. Immediately before classification as held for sale, the measurement of the non-current assets is brought up-to-date in accordance with applicable FRSs. Then, on initial classification as held for sale, non-current assets are measured in accordance with FRS 5 that is at the lower of carrying amount and fair value less costs to sell. Any differences are included in profit or loss.
notes to the financial statements
Significant Accounting Policies (cont'd)
2.2 Summary of Significant Accounting Policies (cont'd) s. Repairs and Maintenance Repairs and maintenance costs are recognised in profit or loss as incurred. Drydocking expenditure is capitalised and depreciated over a period of 30 months or the period until the next drydocking date, whichever is shorter. 2.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs On 1 April 2006, the Group and the Corporation adopted the following FRSs mandatory for financial periods beginning on or after 1 January 2006: FRS 2 FRS 3 FRS 5 FRS 101 FRS 102 FRS 108 FRS 110 FRS 116 FRS 121 FRS 127 FRS 128 FRS 131 FRS 132 FRS 133 FRS 136 FRS 138 FRS 140 Share-based Payment Business Combinations Non-current Assets Held for Sale and Discontinued Operations Presentation of Financial Statements Inventories Accounting Policies, Changes in Accounting Estimates and Errors Events After the Balance Sheet Date Property, Plant and Equipment The Effects of Changes in Foreign Exchange Rates Consolidated and Separate Financial Statements Investments in Associates Interests in Joint Ventures Financial Instruments: Disclosure and Presentation Earnings Per Share Impairment of Assets Intangible Assets Investment Property
At the date of authorisation of these financial statements, the following FRSs, amendments to FRSs and Interpretations were issued but not yet effective and have not been applied by the Group and the Corporation: FRS 117 FRS 124 FRS 139 FRS 6 Amendment to FRS 1192004 Amendment to FRS 121 IC Interpretation 1 IC Interpretation 2 IC Interpretation 5 IC Interpretation 6 IC Interpretation 7 IC Interpretation 8 Leases Related Party Disclosures Financial Instruments: Recognition and Measurement Exploration for and Evaluation of Mineral Resources Employee Benefits – Actuarial Gains and Losses, Group Plans and Disclosures The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation Changes in Existing Decommissioning, Restoration and Similar Liabilities Members' Shares in Co-operative Entities and Similar Instruments Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment Applying the Restatement Approach under FRS 1292004 – Financial Reporting in Hyperinflationary Economics Scope of FRS 2
The above FRSs, amendments to FRSs and Interpretations are expected to have no significant impact on the financial statements of the Group and the Corporation upon their initial application. The Group and the Corporation are exempted from disclosing the possible impact, if any to the financial statements upon the initial application of FRS 117, 124 and 139.
notes to the financial statements
Notes to the Financial Statements
31 March 2007 (cont'd)
2. Significant Accounting Policies (cont'd)
2.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) The adoption of FRS 2, 102, 108, 110, 127, 128, 132 and 133 does not result in significant changes in accounting policies of the Group. The principal changes in accounting policies and their effects resulting from the adoption of the other new and revised FRSs are discussed below: a. FRS 3: Business Combinations, FRS 136: Impairment of Assets and FRS 138: Intangible Assets The new FRS 3 has resulted in consequential amendments to two other accounting standards, FRS 136 and FRS 138. In accordance with the transitional provisions, FRS 3 has been applied for business combinations for which the agreement date is on or after 1 April 2006. i. Goodwill Prior to 1 April 2006, goodwill was amortised on a straight-line basis over its estimated useful life which ranged from 5 to 20 years and at each balance sheet date, the Group assessed if there was any indication of impairment of the cash-generatingunit in which the goodwill is attached to. The adoption of FRS 3 and the revised FRS 136 has resulted in the Group ceasing annual goodwill amortisation. Goodwill is now carried at cost less accumulated impairment losses and is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired. In accordance with the transitional provisions of FRS 3, the Group has applied the revised accounting policy for goodwill prospectively from 1 April 2006. The transitional provisions of FRS 3 also required the Group to eliminate the carrying amount of the accumulated amortisation at 1 April 2006 amounting to RM164,165,000 against the carrying amount of goodwill. The net carrying amount of goodwill as at 1 April 2006 of RM741,167,000 ceased to be amortised thereafter. Because the revised accounting policy has been applied prospectively, the change has had no impact on amounts reported for financial year ended 31 March 2006 or prior periods. The effects on the consolidated balance sheet as at 31 March 2007 and consolidated income statement for the year ended 31 March 2007 are set out in Note 2.3(h)(i) and Note 2.3(h)(ii) respectively. This change has no impact on the Corporation's financial statements. ii. Excess of Group's interest in the net fair value of acquiree's identifiable assets, liabilities and contingent liabilities over cost (previously known as negative goodwill) Prior to 1 April 2006, negative goodwill was amortised over the weighted average useful life of the non-monetary assets acquired, except to the extent it relates to identified expected future losses as at the date of acquisition. In such cases, it was recognised in profit or loss as those expected losses were incurred. Under FRS 3, any excess of the Group's interest in the net fair value of acquiree's identifiable assets, liabilities and contingent liabilities over cost of acquisitions, after reassessment, is now recognised immediately in profit or loss. In accordance with transitional provisions of FRS 3, the negative goodwill as at 1 April 2006 of RM65,000 was derecognised with a corresponding increase in retained profits. Because the revised accounting policy has been applied prospectively, the change has had no impact on amounts reported for financial year ended 31 March 2006 or prior periods. The effects on the consolidated balance sheet as at 31 March 2007 and consolidated income statement for the year ended 31 March 2007 are set out in Note 2.3(h)(i) and Note 2.3(h)(ii) respectively. This change has no impact on the Corporation's financial statements.
There were no differences in the measurement of non-current assets held for sale and those for continuing use. c. on the face of the statement of changes in equity.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) a.notes to the financial statements 125 2. the Group was previously allowed to recognise restructuring provisions in connection with an acquisition regardless of whether the acquiree had recognised such provisions. In addition. all intangible assets were considered to have a finite useful life and were stated at cost less accumulated amortisation and impairment losses. FRS 136: Impairment of Assets and FRS 138: Intangible Assets (cont'd) iii. Upon the adoption of FRS 138. contingent liabilities are now separately recognised. In accordance with the transitional provisions of FRS 138. Accounting for acquisitions Prior to 1 April 2006. based on valuations performed by an independent professional valuer. showing separately the amounts attributable to equity holders of the Corporation and to minority interests. Significant Accounting Policies (cont'd) 2. b. Upon the adoption of FRS 3. the useful lives of intangible assets are now assessed at the individual asset level as having either a finite or indefinite life. Upon the adoption of FRS 3. The change did not affect the financial statements of the Group and the Corporation. iv. total recognised income and expenses for the year. Upon the adoption of the revised FRS 101. the Group is now permitted to recognise such provisions only when the acquiree has. FRS 3: Business Combinations. A similar requirement is also applicable to the statement of changes in equity. The change did not affect the financial statements of the Group and the Corporation. Upon the adoption of the revised FRS 101. and is considered to have finite useful lives and therefore.3(h)(i) and Note 2. provided their fair value can be measured reliably. Other intangible assets of the Group comprise of fair value of time charter hire contracts. Prior to 1 April 2006. the change in the useful life assessment from finite to indefinite is made on a prospective basis. Upon the adoption of FRS 5. at the acquisition date. the share of taxation of associates and jointly controlled entities are now included in the respective shares of profit or loss reported in the consolidated income statement before arriving at the Group's profit or loss before tax. Other intangible assets Prior to 1 April 2006. non-current assets held for sale are classified as current assets and are stated at the lower of carrying amount and fair value less costs to sell. FRS 101: Presentation of Financial Statements Prior to 1 April 2006. The effects on the balance sheets as at 31 March 2007 and income statements for the year ended 31 March 2007 are set out in Note 2. . an existing liability for restructuring recognised in accordance with FRS 137. In the consolidated income statement. the Group did not recognise separately the acquiree's contingent liabilities at the acquisition date as part of allocating the cost of a business combination. continue to be stated at cost less accumulated amortisation and impairment losses. minority interests at the balance sheet date were presented in the consolidated balance sheet separately from liabilities and equity. minority interests are now presented within total equity. minority interests are presented as an allocation of the total profit or loss for the year. The Group has applied FRS 5 prospectively in accordance with the transitional provisions. the Group's share of taxation of associates and jointly controlled entities accounted for using the equity method was included as part of the Group's income tax expense in the consolidated income statement.3(h)(ii) respectively. non-current assets held for sale were neither classified nor presented as current assets. The revised FRS 101 also requires disclosure. FRS 5: Non-current Assets Held for Sale and Discontinued Operations Prior to 1 April 2006.
Upon the adoption of the revised FRS 121. drydocking expenditure are capitalised and depreciated over a period of 30 months or the period until the next drydocking date. Change in functional currency Prior to 1 April 2006. FRS 101: Presentation of Financial Statements (cont'd) Because the revised accounting policy has been applied prospectively. FRS 116: Property. all transactions should be recorded in USD. These changes in presentation have no impact on the Corporation's financial statements. FRS 121: The Effects of Changes in Foreign Exchange Rates i.notes to the financial statements 126 Notes to the Financial Statements 31 March 2007 (cont'd) 2. and all its subsidiaries. Upon the adoption of FRS 116. other than overseas subsidiaries. the change has had no impact on amounts reported for financial year ended 31 March 2006 or prior periods. drydocking expenditure was recognised in profit or loss as incurred. The effects on the balance sheets as at 31 March 2007 and income statements for the year ended 31 March 2007 are set out in Note 2. d. certain comparatives have been restated.3(h)(ii) respectively.3(h)(ii) respectively.3(h)(i) and Note 2. The effects on the consolidated balance sheet as at 31 March 2007 and consolidated income statement for the year ended 31 March 2007 are set out in Note 2. the change has had no impact on amounts reported for financial year ended 31 March 2006 or prior periods. The change did not affect the financial statements of the Group and the Corporation.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) c.3(i). goodwill and fair value adjustments arising on the acquisition of a foreign operation are now treated as assets and liabilities of the foreign operation and are translated at the closing rate.3(h)(ii) respectively. Because the revised accounting policy has been applied prospectively. were maintained in Ringgit Malaysia ("RM"). the financial records of the Corporation. goodwill arising on the acquisition of a foreign operation and fair value adjustments to the carrying amounts of assets and liabilities arising on such an acquisition were deemed to be assets and liabilities of the parent company and were translated using the exchange rate at the date of acquisition. the Group has applied this change in accounting policy prospectively to all acquisitions occurring after 1 April 2006. In accordance with the transitional provisions. Significant Accounting Policies (cont'd) 2. ii. Upon the adoption of FRS 121. and reported in the financial statements using the same currency. e. whichever is shorter.3(h)(i) and Note 2. it has been determined that the functional currency of the Corporation and several subsidiaries are United States Dollar ("USD") and as such.3(h)(i) and Note 2. . This change in accounting policy has been accounted for retrospectively and as disclosed in Note 2. Plant and Equipment Prior to 1 April 2006. Goodwill and fair value adjustments Prior to 1 April 2006. The effects on the balance sheets as at 31 March 2007 and income statements for the year ended 31 March 2007 are set out in Note 2.
g. Summary of effects of adopting new and revised FRSs on the current year's financial statements The following tables provide estimates of the extent to which each of the line items in the balance sheets and income statements for the year ended 31 March 2007 is higher or lower than it would have been had the previous policies been applied in the current year. prior to 1 April 2006. These changes in presentation have been applied retrospectively and as disclosed in Note 2. In addition. These changes in presentation have been applied retrospectively and as disclosed in Note 2. investment properties are now reclassified from property. Upon the adoption of FRS 140. The effects on the consolidated balance sheet as at 31 March 2007 and consolidated income statement for the year ended 31 March 2007 are set out in Note 2. the Group's share of profit of jointly controlled entities accounted for using the equity method was included as part of the Group's share of profit of associates in the consolidated income statement. certain comparatives have been restated.3(h)(i).3(i). There changes in presentation have no impact on the Corporation's financial statements. h. plant and equipment and stated at the revalued amount in 1984.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) f.3(h)(ii) respectively.3(h)(i) and Note 2.3(i). Upon the adoption of FRS 131.notes to the financial statements 127 2. Upon the adoption of FRS 131. the share of profit of jointly controlled entities accounted for using the equity method are now included in the respective share of profit or loss of jointly controlled entities. the Group's investments in jointly controlled entities accounted for using the equity method was included as part of the Group's share of investments in associates in the consolidated balance sheet. FRS 140: Investment Property Prior to 1 April 2006. There were no effects on the income statements for the year ended 31 March 2007. FRS 131: Interests in Joint Ventures Prior to 1 April 2006.certain comparatives have been restated. the Group's investments in jointly controlled entities accounted for using the equity method are now included in the respective investments in jointly controlled entities. plant and equipment and remains stated at the revalued amounts. investment properties were classified as property. The effects on the balance sheets as at 31 March 2007 are set out in Note 2. . Significant Accounting Policies (cont'd) 2.
946) (304.996) 1.710) – – – – – – – – – – – – – – – – – (241.Notes to the Financial Statements 31 March 2007 (cont'd) 2.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) h.868) – – – 47 – – – – – – 47 – 47 – 37. plant and equipment Investment properties Intangible assets Investments in associates Investments in jointly controlled entities Other investments Non-current assets held for sale Deferred tax liabilities Other reserves Retained profits Minority interests Total equity – – – (57.710 – – – – – (37. Summary of effects of adopting new and revised FRSs on the current year's financial statements (cont'd) i. Effects on balance sheets as at 31 March 2007 Description of change FRS 3 Note 2.3(d)/2.435) (304.4 2.851) (9.868) – – – – – – (57.963 (20.634 (315.212) (41.358) – – – – – – – – 49.316) (19.816) (338) (1.3(c) RM'000 Increase/(Decrease) FRS 116 FRS 121 Note Note 2.382.500) – – – – – – – – – – (345.868) – (57.883) 70.451) 128 .382.262) (623.573 894 (338) (1.3(f) RM'000 FRS 140 Note 2.573 (36. Significant Accounting Policies (cont'd) 2.685 (64.3(g) RM'000 Total RM'000 notes to the financial statements Group Ships Property.500 (49.3(e)(i) RM'000 RM'000 FRS 131 Note 2.358 (503.3(b) RM'000 FRS 101 Note 2.983) – – – – 503.242 (22.009.351) 48.900) (1.328 – 107 4.493) 503.212) – – – – – – – – 13.3(a)(ii) RM'000 FRS 5 Note 2.525) (15.630) 1.671) (16.251) 4.3(a)(i) RM'000 FRS 3 Note 2.368.358 (503.
Effects on balance sheets as at 31 March 2007 (cont'd) Description of change FRS 3 Note 2.958 3.384) – – – – – – – – – – – – – (144.596) 4.020 – – – – – – – – – – 49.3(e)(i) RM'000 RM'000 FRS 131 Note 2.3(a)(ii) RM'000 FRS 5 Note 2.063 (198.3(c) RM'000 Increase/(Decrease) FRS 116 FRS 121 Note Note 2.851) 386.473 notes to the financial statements 129 .3(g) RM'000 Total RM'000 Corporation Ships Property.561 (338) 589.500 (49.448 94.2. Significant Accounting Policies (cont'd) 2.351) 386.000) – – – – – – (150.787 (15.3(b) RM'000 FRS 101 Note 2.3(a)(i) RM'000 FRS 3 Note 2.500) – – – – – – 340.063 (29.212) 4.995 100.561 (338) 740.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) h.3(f) RM'000 FRS 140 Note 2.671 (64. Summary of effects of adopting new and revised FRSs on the current year's financial statements (cont'd) i.453 484. plant and equipment Investment properties Investments in subsidiaries Non-current assets held for sale Other investments Deferred tax liabilities Retained profits Other reserves – – – – – – – – – – – – – – – – – – – 169.4 2.453) 6.384 – – (169.3(d)/2.958 222.
3(d)/2.638 230.075) (79.131) – – – – – – – – – – – – – – – – – – 25.193) (178.05 – – – – – – 28.3(e)(i) RM'000 RM'000 FRS 131 Note 2.638 (87.899) (99) (178.868) – – – (57.143) 0.352 (178.3(b) RM'000 FRS 101 Note 2.4 2.172 (1.868 – (57.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) h.3(c) RM'000 Increase/(Decrease) FRS 116 FRS 121 Note Note 2.800) (3.846) – – – (317.846) – (317.846 – – (317.799 (373) 197.131 (28.868) – (0.089) (0.987) 5.02) – – (47) – 47 – – – 47 – 47 – – – – 305 – (305) – – – (305) – (305) – – – – – – – – 274 – 274 274 – – – – 317.771 (20.178 317 – (62) 196.868) – (57.405 (28.3(a)(ii) RM'000 FRS 5 Note 2. Summary of effects of adopting new and revised FRSs on the current year's financial statements (cont'd) ii.794) 317 28.352 197.06) 130 . Significant Accounting Policies (cont'd) 2.Notes to the Financial Statements 31 March 2007 (cont'd) 2.3(f) RM'000 FRS 140 Note 2.846) (1. Effects on income statements for the year ended 31 March 2007 Description of change FRS 3 Note 2.3(g) RM'000 Total RM'000 notes to the financial statements Group Revenue Cost of sales General and administrative expenses Other operating income Operating profit Finance costs Share of profit of associates Share of profit of jointly controlled entities Profit before taxation Taxation Profit for the year Minority interests Basic earnings per share (sen) – – 57.946) (0.3(a)(i) RM'000 FRS 3 Note 2.09) 25.113) 5.
407) 371 (79. Effects on income statements for the year ended 31 March 2007 (cont'd) Description of change FRS 3 Note 2.032 (151.3(b) RM'000 FRS 101 Note 2.256 154. Significant Accounting Policies (cont'd) 2.778) – – – – – – – – – – – – – – – – 17.233) – (3.778) (79.579 (154.4 2.313) (247.093) 371 (233.453) (150.3(g) RM'000 Total RM'000 Corporation Revenue Cost of sales General and administrative expenses Other operating income Operating profit Finance costs Profit before taxation Profit for the year – – – – – – – – – – – – – – – – – – 3.3(a)(ii) RM'000 FRS 5 Note 2. Summary of effects of adopting new and revised FRSs on the current year's financial statements (cont'd) ii.630) (79.453) 17.233 – (3.233) (3.453 – – (150.464) (233.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) h.3(a)(i) RM'000 FRS 3 Note 2.630) (233.3(f) RM'000 FRS 140 Note 2.2.546) (247.3(e)(i) RM'000 RM'000 FRS 131 Note 2.3(d)/2.233) – – – – – – – – – 150.464) notes to the financial statements 131 .256 3.453) – (150.3(c) RM'000 Increase/(Decrease) FRS 116 FRS 121 Note Note 2.
notes to the financial statements 132 Notes to the Financial Statements 31 March 2007 (cont'd) 2.912.150 13.800) 53.568 1.800 3.943 53.652 18.578 298.506 3.800 – – – – – – 7.554 35.026.009 842.237 336.229.849.280 (1.686 67.756.273 (1. plant and equipment Investment properties Investments in associates Investments in jointly controlled entities Other investments Other reserves Retained profits Minority interests Deferred tax liabilities Corporation Ships Property. plant and equipment Investment properties Investments in subsidiaries Investments in associates Other investments Other reserves Retained profits Deferred tax liabilities RM'000 Increase/(Decrease) FRS 131 FRS 140 Note Note 2.018 (733.314 50.310 3.235) – – – – 2.217 9.981 8.309.651 (191) (881) 1.221 12.462 23.423 12.325.012 39.351 – 151.536.882 67.226 – 85.217 9.770 53.501 11.384) – – – – 1.647.852.963.955 284.348.804) (102) – – – – – – – – – – (53.3(e)(i) RM'000 2.235 9.602 .119.989 (817.800 – – – – – – – 19.963.632 8.013 7.789 2.515 321.278 39. Significant Accounting Policies (cont'd) 2.3(f) 2.800) 53.704 96.623) (14.037.122.036 1.476 – – – – – – (53.561.096.073.115 1.219 – – – (885) 2.766 – 236.955.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) i.505 51.3(e)(i) Description of change At 1 April 2005 Group Other reserves Retained profits Corporation Other reserves Retained profits At 31 March 2006 Group Ships Property.206 8.800 12.499 35.021 827.3(g) RM'000 RM'000 Restated RM'000 106.087.221.290 139. Restatement of comparatives The following comparative amounts have been restated as a result of adopting the new and revised FRSs: Previously Stated FRS 121 Note 2.571.196) (102) – – – (139.577 2.051.476 235.476) 139.517 – 3.301.
843 3.326.217 1.3(f) 2.106 (72.071 297.348.830 – – – – – – – – – – – – – – – – – – 10.402 28.9 4.747.970.870.190 784.105 17.679 4.824.602 75.4) – – – – – – – – (11.168.426 7.279 1.255 (14.707.832 244.584.079 18.234 – 3.325 383.711) (41.029 202.notes to the financial statements 133 2.331 29.981 .558 796.638 3. Restatement of comparatives (cont'd) Previously Stated FRS 121 Note 2.943 18.3(g) RM'000 RM'000 Restated RM'000 Group For the year ended 31 March 2006 Revenue Cost of sales Gross profit Gain on disposal of ships Other operating income General and administrative expenses Operating profit Finance costs Share of profit from associates Share of profit from jointly controlled entities Profit before taxation Taxation Profit for the year Basic earnings per share (sen) Corporation For the year ended 31 March 2006 Revenue Cost of sales Gross profit Gain on disposal of ships Other operating income General and administrative expenses Operating profit Finance costs Profit before taxation Taxation Profit for the year 10.671.912 376.689.488 79.274) – – – – – – – – – – – – – – – – – – – – – – 4.864) 63 (85.901 1.841 79.413 (176.830) 11.032.257 892.452 868.830 2.346) 157.3(e)(i) Description of change RM'000 Increase/(Decrease) FRS 131 FRS 140 Note Note 2.932) 107.838 1.3 Changes in Accounting Policies and Effects Arising from Adoption of New and Revised FRSs (cont'd) i.121 202.605) 58.886) (3.759) (41.398 15.707) 4.597.197 1.284 3.766.178 18.170 3.603.900.002.051 3.325 999.566 27.788 756.080 7.932) 120.221.622.028.421.832 – – (131. Significant Accounting Policies (cont'd) 2.788 244.257 262.956 348.418 (126.3(e)(i) RM'000 2.539) 347 (131.190 2.404 11.3 (19.588 3.850 1.792 30.839.663 343.927) 347 (86.062 (85.
i.000 (2006: RM741. the depreciation charges of the Group and of the Corporation for the current financial year have been reduced by RM159. Investment property is a property held to earn rentals or for capital appreciation or both. 2. Operating lease commitments – the Group as lessor It is in the ordinary course of business that the Group enters into lease arrangements with related and third parties on its ships. b. If the portions could not be sold separately. This requires an estimation of the value in use of the cash-generating-units ("CGU") to which goodwill is allocated. .4 Changes in Estimates The revised FRS 116: Property. The carrying amounts of goodwill as at 31 March 2007 were RM773. plant and equipment at least at each financial year end. Judgement is made on an individual property basis to determine whether ancillary services are so significant that a property does not qualify as investment property. plant and equipment The Group has developed certain criteria based on FRS 140 in making judgement whether a property qualifies as an investment property. The Group has determined that it retains all the significant risks and rewards of ownership of these ships. Plant and Equipment requires the review of the residual value and remaining useful life of ships.167.000). property.000 and RM101. If these portions could be sold separately (or leased out separately under finance lease). Critical Judgements Made in Applying Accounting Policies The following are the judgements made by management in the process of applying the Group's accounting policies that have the most significant effect on the amount recognised in the financial statements. Impairment of goodwill The Group determines whether goodwill is impaired at least on an annual basis. and the ships are recognised and classified as part of non-current assets of the Group and the Corporation.5 Significant Accounting Estimates and Judgements a. that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Key Sources of Estimation Uncertainty The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date.100.notes to the financial statements 134 Notes to the Financial Statements 31 March 2007 (cont'd) 2. Significant Accounting Policies (cont'd) 2. the Group would account for the portion separately.000 respectively. Some of the lease arrangements may be extended to a longer period of time.393. i. The revision was accounted for prospectively as a change in accounting estimates and as a result. Some properties comprise a portion that is held to earn rentals or for capital appreciation and another portion that is held for administrative purposes. Classification between investment properties and property. The Group revised the residual value of ships with effect from 1 April 2006. covering substantially the useful life of the ships concerned. the property is an investment property only if an insignificant portion is held for administrative purposes. Further details of the impairment loss recognised are disclosed in Note 14(a).109. ii. Estimating a value in use amount requires management to make an estimate of the expected future cash flows from the CGU and also to choose a suitable discount rate in order to calculate the present value of those cash flows.
000) and the unrecognised tax losses and capital allowances of the Group was RM579.000). plant and equipment of the Group as at 31 March 2007 were RM21. therefore future depreciation charges could be revised.021.986 544.159.467.5 Significant Accounting Estimates and Judgements (cont'd) b. Impairment of ships.000) and RM843.770.227. plant and equipment are allocated.326 173.notes to the financial statements 135 2.803 5.001. 3.482 3.650.000 (2006: RM17.679 Non-shipping income mainly represents revenue generated from shipbuilding.012 1. Changes in the expected level of usage and regulations could impact the economic useful lives and the residual values of these assets.994 460.747. property.739. repairing and heavy engineering work.927. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised. Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the CGU and also to choose a suitable discount rate in order to calculate the present value of those cash flows. This is a prudent life expectancy applied in the shipping industry. Deferred tax assets Deferred tax assets are recognised for all unused tax losses and unabsorbed capital allowances to the extent that it is probable that taxable profit will be available against which the losses and capital allowances can be utilised.711 190. property.385.114.599 – 4.091 1.000 (2006: RM19.341 – 4. iv.707. Key Sources of Estimation Uncertainty (cont'd) ii. based upon the likely timing and level of future taxable profits together with future tax planning strategies. iii.172 790. Management estimates the useful lives of these ships to be 20 years.374. The carrying amount of ships.198.581 11. Revenue Group 2007 RM'000 Freight income Charter and lightering income Other shipping related income Non-shipping income 3. Further details of the impairment loss recognised are disclosed in Note 12(e). The Group carried out the impairment test based on a variety of estimation including the value in use of the CGU to which ships.287 5.572 10. plant and equipment During the financial year. Significant Accounting Policies (cont'd) 2.000 (2006: RM827.00% increase in the average useful lives of these assets from management's estimates would result in approximately 6.963. Depreciation of ships The cost of ships is depreciated on a straight-line basis over the assets' useful lives.080 Corporation 2007 2006 RM'000 RM'000 3.824.711 972. the Group has recognised impairment loss in respect of property.945 2006 RM'000 3. property. .355. The total carrying value of recognised tax losses and capital allowances of the Group was RM20.000) respectively.034.091.787.07% increase in profit for the year. plant and equipment.000 (2006: RM467.752. A 10.
076 – 284 71.579 12.666 324.137 392 – 32.886 – 22.039 2.671 80.421 363.359 72.066 17.338.733 – 15.398 25.293 1.871 32.067 999.234 284 30.918 383.410 303.375 34.706 – 277 375 54.notes to the financial statements 136 Notes to the Financial Statements 31 March 2007 (cont'd) 4. Other Operating Income Group 2007 RM'000 Interest income: Subsidiaries Deposits Dividend income on equity investments: Subsidiaries Quoted in Malaysia Unquoted in Malaysia Unquoted outside Malaysia Rental income: Subsidiaries Others Exchange gain: Realised Unrealised Management services: Subsidiaries Others Gain on disposal of: Property.997 46.429 85 11.235 57.131 2.494 – 85 24.926 – 24.820 50.360 1.816 – – 177 – 1.994 1.038 – 18. plant and equipment Subsidiary Associates Other investments Gain on liquidation of a subsidiary Write back of provision for doubtful debts Reversal of writedown of inventories Miscellaneous: Subsidiaries Others 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 – 110.205 – 177 174.706 143 – 2.190 90.130 – 6.912 .303 64.681.345 – 121.197 – – 3.181 6.490 63.626 1.867 2.163 – – – – – – 2.088 – 1.038 245 997 3.473.217 45.140 1.725 – 6.423 1.
632 7.599 – 301.439 12.537 891 205.622 – 10.909 12.275.294 91.633. plant and equipment: Depreciation (Note 12) Written off Impairment loss (Note 12) Staff costs (Note 6) 28.556.578 168.705 888 386 130 1.885 19.071.437 437.943 851.913 17.798 1.notes to the financial statements 137 5.328 22.168 2006 RM'000 70.042 765 191.730 – 2.570 519.912 707 26.008 373 15.418 22.425 Corporation 2007 2006 RM'000 RM'000 – – 1.960 500 889 – 418 1.766 8.276 65.665 – – 248.932 1.535 – 1.405 1.990 7. Operating Profit The following amounts have been included in arriving at operating profit: Group 2007 RM'000 Amortisation of intangible assets Auditors' remuneration: Auditors of the Corporation: Statutory audits Other services Other auditors: Statutory audits Other services Charter hire expense Drydocking expense Impairment loss in goodwill Inventories used Exchange loss: Realised Unrealised Operating lease rental Provision for doubtful debts Bad debts written off Rental of equipment Rental of land and buildings Ships.617 .589 – 719. property.194 61 124.730 150.481 1.600 695.442.395 994 604 430 1.325 1.850 550 787 – 109 984.426.636 12.477 139 9.360.571 – – 691.258 12.517 1.010 76.851 – 9.837 14.
583 3.000) and RM1.233 The details of remuneration receivable by directors of the Corporation during the year are as follows: Group 2007 RM'000 Executive: Salaries and other emoluments Bonus Fees Defined contribution plan Estimated money value of benefits-in-kind Non-Executive: Fees 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 797 135 171 276 47 1.445 5.759 28.208 347 1.533 851.412 – 1.000 (2006: RM874.960 187.204 29 1.898 2.078 6.726 686 4.notes to the financial statements 138 Notes to the Financial Statements 31 March 2007 (cont'd) 6.925 2.335 797 135 – 276 47 1.233 .682 882 696 12.143 1.124 301.850 Corporation 2007 2006 RM'000 RM'000 235.801 245 1.602 646 – – 228 29 903 330 1.208.426 347 1. Directors' Remuneration Group 2007 RM'000 Executive directors' remuneration: Fees Other emoluments Non-executive directors' remuneration: Fees Total directors' remuneration Estimated money value of benefits-in-kind Total directors' remuneration including benefits-in-kind 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 315 3.723 1.963 4.229 47.773 646 – 102 228 29 1.255 347 1. salaries and bonuses Termination benefits Social security costs Contributions to defined contribution plan Other staff related expenses 731.522 26.104 695.617 Included in staff costs of the Group and of the Corporation are executive directors' remuneration amounting to RM4.143.278.953 – 737 10.208 1. 7.278 1.548 4.005 330 1.440 1.128 248.000) respectively as further disclosed in Note 7. Staff Costs Group 2007 RM'000 Wages.602 – 874 874 330 1.000 (2006: RM2.408 1.061 89.481 2006 RM'000 583.031 78.146 55.555 47 1.
001 – RM100. effective year of assessment 2008. Directors' Remuneration (cont’d) The number of directors of the Corporation whose total remuneration during the financial year fell within the following bands is analysed below: Number of Directors 2006 2007 Executive directors: RM900.757 (33.135 (33.071 – 379.818) 348.736 52.001 – RM1. Finance Costs Group 2007 RM'000 Interest expense: Subsidiaries Third parties Islamic Private Debt Securities Non-convertible Cumulative Redeemable Preference Shares dividend Total interest expense Less: Interest expense capitalised in qualifying assets: Ships under construction Net interest expense 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 – 374.197 Domestic current income tax is calculated at the statutory tax rate of 27% (2006: 28%) of the estimated assessable profit for the financial year.695 (333) 31 (2.901 9.522 (29.notes to the financial statements 139 7.190 – – – – – – – – – 18. Taxation Group 2007 RM'000 Current income tax: Malaysian income tax Foreign tax (Over)/underprovision in prior years: Malaysian income tax Foreign tax Deferred tax: Relating to origination and reversal of temporary differences Relating to changes in tax rates Transfer to deferred tax (Note 29) (Over)/underprovision in prior years 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 32.627 3.621) 18.985 1.481 301 2.002 1.000 1 7 1 1 5 2 8.990 1.000 Non-Executive directors: RM1 – RM50.783) 210 (132) 33.000 RM50.426 5.350) 3.267 283 67 – (8.216 56.500. .221 – 301 – 52.398 (11.197 – – – – – – – 18. The computation of deferred tax as at 31 March 2007 has reflected these changes.084 377.734) (1.434 382. The domestic statutory tax rate will be reduced to 26% from the current rate of 27%.306 30.380 29.002 – 57.601) 46.314) 347.734 – 1.
745) – – – – 18.890 – – (258.150 (41.310 791.201 (132) – (221.332 1. capital allowances and reinvestment allowances Utilisation of reinvestment allowances during the year Deferred tax (over)/under provided in prior years Deferred tax assets not recognised during the year Income tax (over)/under provided in prior years Taxation for the year (42.792 812. The Corporation has sufficient tax exempt income to frank the payment of dividend out of its entire retained profits as at 31 March 2007.notes to the financial statements 140 Notes to the Financial Statements 31 March 2007 (cont'd) 9.900.744 999. Taxation (cont'd) A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Corporation is as follows: Group 2007 RM'000 Profit before taxation Taxation at Malaysian statutory tax rate of 27% (2006: 28%) Effect of changes in tax rates on opening balance of deferred tax Effect of different tax rates in other countries Income not subject to tax: Tax exempt shipping income Other tax exempt income Expenses not deductible for tax purposes Utilisation of previously unrecognised tax losses.930.178 448.721) – 3.306 9.946) 396.190 (1.102) (124.550 30.359) 119.092) 362.222 – 42.380 (62.603. 1967 and ships registered outside Malaysia under tax jurisdictions of other countries. subject to an agreement with Inland Revenue Board.759 (302) 33.028.184 (1.276) (945.905 Corporation 2007 2006 RM'000 RM'000 3.860 (774.957 (13.700. .746) – – 61.597) (252.197 Tax exempt shipping income is derived from the operations of the Group's sea-going Malaysian registered ships under Section 54A of the Malaysian Income Tax Act.783) 10.895) (132) 70.657 2.501) 122.528) (4.411 2006 RM'000 2.115) (398.355 – – 1.
7 2006 2.975 368.966 Final tax exempt dividend of 20 sen per share The financial statements for the current financial year do not reflect this proposed dividend.365 742.719.828 75. Dividends Dividends Recognised in Year 2007 2006 RM'000 RM'000 In respect of financial year: 31 March 2005: Final tax exempt dividend of 20 sen per share Special tax exempt dividend of 20 sen per share 31 March 2006: Interim tax exempt dividend at 10 sen per share Final tax exempt dividend at 20 sen per share 31 March 2007: Interim tax exempt dividend at 10 sen per share – – – – 727. .975 727. Group 2007 Profit attributable to equity holders of the Corporation (RM'000) Weighted average number of ordinary shares in issue ('000) Basic earnings per share (sen) 2. 11. Earnings per Share Basic earnings per share amounts are calculated by dividing profit for the year attributable to ordinary equity holders of the Corporation by the weighted average number of ordinary shares in issue during the financial year.365 371.719.966 371.991 1.573 3.730 371.852.822. Such dividend.365 – 1. the following tax exempt dividend will be proposed for shareholders' approval in respect of the financial year ended 31 March 2007: RM'000 743.notes to the financial statements 141 10.365 – 371.9 Diluted earnings per share are not presented as there were no potential dilutive ordinary shares outstanding as at 31 March 2007. if approved by the shareholders.114.025 3. will be accounted for in equity as an appropriation of retained profits in the financial year ending 31 March 2008.095 At the forthcoming Annual General Meeting.828 76.096.
106) (40.970) (2.164) (838) (5.748.2006 Additions write offs Transfers for sale differences 31. Plant and Equipment <------------------------------------------------------------Cost------------------------------------------------------------> Disposals Reclassified Currency At and as held translation At 1. fittings and equipment Computer software and hardware Systems work in progress Construction in progress Plant and machinery Tugboats.080.052 9.463.204 193.660) – (15.700.108 147. plant and equipment At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Drydocks and waste plant Containers Motor vehicles Furniture.127 886.2007 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Group – 31 March 2007 Ships At cost: Ships in operation Ships under construction 29.947 93.100.394 1.Notes to the Financial Statements 31 March 2007 (cont'd) 12.303) 14.268 89.131 14.762) (6.545 83.470) 29.384 189.910 199.270 58.382.287 – 2.968) – (4.717 – 90.276.361) (1.872 4. Ships.500) (376.760 15.000) (1.124 32.043) (418) – – – (1.623 261.929) (5.037) (1.990 .167 – 264.893 401.043 (24.090 43.480) (4.821 3.3.003 3.342 – 178.839.4.394 1.315. Property.028 (2.517) 2.808) (20.867 4.347) (743) – – – – – – – – – (47.837) (250) (549) – (44.270 52.261 4.100 32.828 – (2.923 83.309. engines and pushers 16.899.287) (2) (2.627) – – – – 418 – – – – 24.820 178.093) (346) (1.028) – – – – (1.100.214 101.095 423.696) (1.280 10.194 (1.530.399) – (134.402 – 89.220.876 130.256 – 273 – 247 540 22.420 305.333.481) – (373) (5.334 notes to the financial statements 142 Property.453) (1.353) – (46.462 33.319.373 4.801) (48.652) (9.
write offs Depreciation and Reclassified Currency At charge for impairment as held translation At 1.149) – (678) (428) (467) (1.3.919 310 88.329 6.2007 RM'000 Group – 31 March 2007 Ships At cost: Ships in operation Ships under construction 12.943 (46.668) – – 31 – (23.106 1.324 – (403) – (373) (1.763 14.462 21.876.420 108. Property.064 – – 13.028 60.652.499) – – (1.714 27.302) – (3.104) 12.168 2.876 99.121 8.377 64.064 392 1.417 3.391 57. Ships.272.394 139.240 29.272.852 55.223) – – – – – – – – – – – – – – – – (5.701) – (118.428.034.513 – 1.282 20.675) – 31.976 38.876.641 8.126 7.801) (48.624) (223) – – – – – – – – – (9.010 6.127 103.005 4.927 149.837 37.051 80.439 7.2006 the year losses Transfers for sale differences 31.867 16.104) – (862.372) – (14.844 1.154 25. fittings and equipment Computer software and hardware Systems work in progress Construction in progress Plant and machinery Tugboats.269 190.054 99.024 34.395 8.467 notes to the financial statements 143 Property.648) – (857.428.486 – 2.218 857.648) – – – – – – (862.168 274.246 18.176 843.998) 1.513 (857.067 – – 184.106 – 12.908 920.040) (2.904 2.2007 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Net book value at 31. plant and equipment At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Drydocks and waste plant Containers Motor vehicles Furniture.3.867 – 12.227 .382.4.351) (18. Plant and Equipment (cont'd) <-----------------------------------------Accumulated Depreciation-------------------------------------------> Disposals.735 5.344) (223) (526) (5.153 112.591 246. engines and pushers – 35.438 – 89.12.964 – – 196.
614 – (1.954 61.748. Plant and Equipment (cont'd) <-------------------------------------------------Cost/Valuation-----------------------------------------------------> Disposals Reclassified Currency At and as investment translation At 1.623 – 25.039.414) (975) (1.270 58.947 93.704 72.324) – – – – – – – – – – (86.135 2.496 – 2.473.056) (667) (2.375) (251.487 180.384 189.127 349.394 1.552 7.318) (37.787) 1.2005 Additions write offs Transfers properties differences 31.897.620 – 38.603 30.549) (180.081 3.100 32.456) – (8.614) (406. fittings and equipment Computer software and hardware Systems work in progress Trailers and prime movers Plant and machinery Tugboats.614.760 15.305 180.157 2.383 22.530 171.623 261.2006 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Group – 31 March 2006 Ships At cost: Ships in operation Ships under construction 28.870) 16.167 – 264.146) (66.787) – – – – (817.3.760 641.341 – – – – – – (80.923 83.349 396.010 70.523 42.309.003 3.635) – – (3.127 Property.462 15.946) (907.254 – 659 – 2.063) – – 144 At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Drydocks and waste plant Containers Motor vehicles Furniture.284 – 71.820 178.530.620) – – – – – – (14.413) – – – – – – – 180.620 243. Ships.893 401.418.867 4.256 .835 – 5.124 32.769 2.216 (406.Notes to the Financial Statements 31 March 2007 (cont'd) 12.473.361) (434) (2. plant and equipment At 1984 valuation: Freehold land Freehold buildings 35.4.027) (2.463 96.839.479.897) (71) (23.477 – – – – notes to the financial statements – – (34.504) (1.255.062) 29.549 (38.116) (89.293 38.126) (137) (627) (4.181 67.212) – (281) – (24.509 4. Property.108 147.289) (77. engines and pushers 17.
258 47.2006 RM'000 Group – 31 March 2006 Ships At cost: Ships in operation Ships under construction 12.867 90.330) – (190.483 34. write offs Depreciation and Reclassified Currency At charge for impairment as investment translation At 1.981 44.770 .012 (190.336. plant and equipment At 1984 valuation: Freehold land Freehold buildings – 18.011) (547) – (7.094.754) (219.021 Property.366) – – (145) – (13.510 44.282 20.795 – – – (164.067 – – 184.168 2.065) 12.530.489 – 12.795) – – – – – – (13.032 14.065) – (370.292 6.330 90.816 2.388 – 763 – – – – – (18.852 55.702 8 .003 125.644) (89) (237) (2.795 174.897 – 3.971 6.489 1.797 327.233 66.4.167 – 80.472 7.256) – (276) (176) (1.106 16.465 – – – – – 9.432. Plant and Equipment (cont'd) <---------------------------------------------Accumulated Depreciation-------------------------------------------> Disposals. Ships.127 103.106 19.100.330) – – – – – – (370.394 139.719 1.313 410 2.963.988 38.908 920.561) – – – – – – – 164. fittings and equipment Computer software and hardware Systems work in progress Trailers and prime movers Plant and machinery Tugboats.486 16. engines and pushers – 33.629) – (522) – – – – notes to the financial statements 145 At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Drydocks and waste plant Containers Motor vehicles Furniture.194 6.048 32.289) (77.336.12.071 28.462) – – (3.100.851 – 2.2006 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Net book value at 31.381 21.013) – 35.699 1.876.013) (44.804 – – 12.329 6.486 827.033 32.600 (80.124 12.2005 the year losses Transfers properties differences 31.499 262.820 143. Property.012 – 1.431 8.938 4.358 8.591 246.627) – – – – – – – – – – (32.714 27.876.054 99.091 – 164.3.943 90.3.584) (59) (23.
695 – 273 – – – – 1.701 2.635 158.934 (4.421 261.042) – – – (748.636 (409.000) (1.837) (42.654 – 372.960 724.270) (27.423) (1.467) 12.221.801) (261) – (8.527 (1.935 3.167 685.827 86.665 83. fittings and equipment Computer software and hardware Systems work in progress 12.214 4.958) (5.287) (61.869) (80.106 15.270 29.380.883 – – – – – (46. Plant and Equipment (cont'd) <----------------------------------------------------------Cost----------------------------------------------------------> Reclassified Currency At as held translation At 1.169.034. Ships.157.471 10.439) 24.927) (14.039.043 (24.424 (286.976) (413.2007 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Corporation – 31 March 2007 Ships At cost: Ships in operation Ships under construction 11.820 – 11.984 17.643 13.728) – – – – – – – (7.093) (294) (1.2006 Additions Disposals Transfers for sale differences 31.997.228) (9.771) – – – – – 199.037) (2.505) 15.043) (7.098) (668.554 143.870.3.657) (15.Notes to the Financial Statements 31 March 2007 (cont'd) 12.038) 2.593 32.776.836) (77.951 notes to the financial statements Property and equipment At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.432.748 8.048.452) (1.042 1.317 2.666) (829) (5. Property.764) – – – – – (212.108 3.439) (11.974 146 .061) 1.379) (6.4.
12.220) – (296.248) – – – – – (40.987 6.012 – 282.702) – (454.284 6.414) – – – – – – – (837) – – (837) – (9.015) – – – – – 190. Property.395 908 1.853 – 398.681 19.870.702) 6.871) (5.127 2.591 67.411) (5.843 – – – – – 8.835 – 38.875.592.527 8.163) (573) (14. Ships.2007 RM'000 Corporation – 31 March 2007 Ships At cost: Ships in operation Ships under construction 6.666 85.4.642 – 90.2007 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Net book value at 31.377 2.344) (178) (355) (5. fittings and equipment Computer software and hardware Systems work in progress – 9.220) (75.3.835) – (75.853 (296.3.048) – (576) (413) (1.875.410 Property and equipment At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.721.267 30.445 – 6.788 4.308 4.363) – (55.752 – – – – – 5.405 – – – – – (46.801) (250) – (8.683 5. Plant and Equipment (cont'd) <--------------------------------------------Accumulated Depreciation--------------------------------------------> Depreciation Reclassified Currency At charge for as held translation At 1.953 – 363.837 1.447.883 2.445 398.821 246.541 5.413) – (23.969 73.447.541 – 6.518) (19.131 notes to the financial statements 147 .835) – – – (454.2006 the year Disposals Transfers for sale differences 31.
602) 12.609.557) (1.347) 11. fittings and equipment Computer software and hardware Systems work in progress 13.289) (860) – (22.2006 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Corporation – 31 March 2006 Ships At cost: Ships in operation Ships under construction 13.305 14.484) – – – – – – – – 38.549 (38. Plant and Equipment (cont'd) <--------------------------------------------------Cost/Valuation---------------------------------------------------> Reclassified Currency At as investment translation At 1.379.088 3.832 127.232) (2.873 1.692 4.3.729 1.277 15.056) (360) (2.167 685.414) (975) (1.106 15.997.421 261.841.704 42.335) – (103.034 534.557) (2.381) – (606. Property.877 349.623 27. Ships.593 32.495 (406.516 – – 1.360) (434) (1.301 15.984 17.695 .678 2.361 – – – – – (80.554 143.776.523 3.907) (1.549) – – – – (14.809.594 67.324) – – – – – – (86.376.643 (401.4.035) 2.221.665 83.867 88.249) (406.126) (111) (366) (3.630) – – – (333.025 85.108 3.827 86.199.305 870.960 Property and equipment At 1984 valuation: Freehold land Freehold buildings 35.293 38.Notes to the Financial Statements 31 March 2007 (cont'd) 12.270 29.318) (37.456) (8.773.477 – – – – notes to the financial statements – – (34.063) – – 148 At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.317 (68.382) 13.476 – 165 – 2.212) (22.622 2.2005 Additions Disposals Transfers properties differences 31.
627) – – – – – – (32.644) (63) (113) (1.107 – 40.875.053) 149 – – – – – – – – – – – – – – (13.3.943 .905 27.676 12.048 20.284 6.796) – 9. Plant and Equipment (cont'd) <----------------------------------------------Accumulated Depreciation------------------------------------------> Depreciation Reclassified Currency At charge for as investment translation At 1.445 4.176) – (103.3.981 1.600 14.445 – 6.752 12.629) – (522) – – – – notes to the financial statements At cost: Freehold land Long term leasehold land Short term leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.12.005) – (596. Ships.101) (596.005 (190.515 Property and equipment At 1984 valuation: Freehold land Freehold buildings – 18.776.821 246.005) – – – (198.080) 6.987 6.665 73.380.388 – 763 – – – – – (18. Property.2006 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Net book value at 31. fittings and equipment Computer software and hardware Systems work in progress – 9.799 64.358 821 1.308 4.626 – 7.2006 RM'000 Corporation – 31 March 2006 Ships At cost: Ships in operation Ships under construction 7.640 32.380.2005 the year Disposals Transfers properties differences 31.986 23.101) – (190.791 6.660 – – – – – (80.127 2.256) – (275) (174) (571) (547) (7.122.681 19.406 6.626 479.875.963 75.005 – 479.289) (588) – (22.197 – 856 410 649 1.080) – (198.167 321.119 8.872 2.138 2.577 327.591 67.4.643 7.702 2.953 – 363.887) – (11.345.230 18.909 – 470.146 66.
954 3.601.000 (2006: RM33. is as follows: Group 2007 2006 RM'000 RM'000 Long term leasehold and foreshore land – 1988 7.169. plant and equipment 4.009 3.592.621.000 (2006: RM33.221. property. The recoverable amount was based on value in use and was determined at the cash-generating-unit ("CGU") of each asset.000) respectively. plant and equipment during the financial year. Included in long term leasehold land of the Group is the carrying value of a long term leasehold and foreshore land of a subsidiary of RM54.481 d. Ships. plant and equipment pledged as securities for borrowings (Note 26) are as follows: Group 2007 2006 RM'000 RM'000 Ships Property. The net book value of revalued properties.022 52.000) as disclosed in Note 5. Certain properties were revalued by the directors in 1988 based on valuations carried out by firms of professional valuers to reflect the market values then. The review led to the recognition of an impairment loss of RM1. c. as disclosed in Note 8.000 (2006: RM55.726 b.314.000) and RM11. .472 56.000 (2006: RM9. The Group has carried out a review of the recoverable amount of its ships. Property. had the assets been carried at cost less depreciation. property.818. the cash flows were discounted at a rate determined by management on a pre-tax basis.474 7. Surpluses on revaluation were taken to the revaluation reserve on that date. Borrowing costs capitalised during the financial year for ships under construction of the Group and of the Corporation amounted to RM29.notes to the financial statements 150 Notes to the Financial Statements 31 March 2007 (cont'd) 12. charged or subleased without the prior consent of the Johor State Government.932 4. e.297.217.943.000) which cannot be disposed off. In determining value in use for the CGU.600. The net carrying amounts of ships. Plant and Equipment (cont'd) a.353.
444) 86.071 – 53.350 – 88.146) 30.notes to the financial statements 151 13.865 . Surpluses on revaluation were taken to the revaluation reserve on that date. plant and equipment Currency translation differences At 31 March 2006 Currency translation differences At 31 March 2007 Accumulated depreciation At 1 April 2005 Transfer from property.500 (2.318 32.469) 51.635) 80.921 – 32.071 33.957 53.311 853 (908) 32.256 811 (2.043 19.800 49.000 Investment properties were revalued by the directors in 1984 based on valuations carried out by firms of professional valuers to reflect the market values then.047 3.056 (5.247) 32.921 34. Investment Properties Group and Corporation Freehold Freehold Land Building Total RM'000 RM'000 RM'000 Valuation At 1 April 2005 Transfer from property.738 (3.482 17. The net book value of the revalued properties.429 17.256 811 (2.207 (1. had the assets been carried at cost less depreciation.318 (2.719 818 3.146) 30.901 3.293 (975) 34.388) 48. is as follows: Group 2007 2006 RM'000 RM'000 Freehold land – 1984 Freehold buildings – 1984 818 2.421 – – – – – – – – – 32. plant and equipment Depreciation charge for the year Currency translation differences At 31 March 2006 Depreciation charge for the year Currency translation differences At 31 March 2007 Net carrying amount At 31 March 2006 At 31 March 2007 Fair value – 31 March 2007 – 35.500 51.311 853 (908) 32.
109 296.473 .328) 775.168 – 236.996) 28.561 (163.897 (122) (47) (169) 169 – – – 121.585 1.168 2.434 504.041.595 (48.865 42.595 (48.463 – – – 504.165) – 2.172 207.424 Other intangible assets RM'000 Goodwill RM'000 Total RM'000 (234) 234 – – – 905.279.167 773.976 (163.325 2.463 1.165) 82.315 1.037.300 164.325 238.425 371.551 70.148 301.notes to the financial statements 152 Notes to the Financial Statements 31 March 2007 (cont'd) 14.931) 82.325 179.409.328) 1.165 (164.483 268.808 28.332 (164. Intangible Assets Group Reserve arising on consolidation RM'000 Cost At 1 April 2005 and 31 March 2006 Effects of adopting FRS 3 Additional investment in a subsidiary Currency translation differences At 31 March 2007 Accumulated amortisation and impairment At 1 April 2005 Amortisation At 31 March 2006 and 1 April 2006 Effects of adopting FRS 3 Amortisation Impairment loss recognised in income statement At 31 March 2007 Net carrying amount At 31 March 2006 At 31 March 2007 (65) – 741.980 – 28.
325. In determining value in use for the CGU.000 (2006: RM Nil) as disclosed in Note 5.122 – 2. and are amortised over the time charter period of the vessels. . Impairment loss recognised The Group has carried out a review of the recoverable amount of its investments in subsidiaries and goodwill during the financial year. Intangible Assets (cont'd) Other intangible assets relate to fair value of time charter hire contracts based on valuations performed by an independent professional valuer.594 – 720 773. b. The discount rate used is based on the pre-tax weighted average cost of capital determined by the management.325 720 741. Key assumptions used in value in use calculations The recoverable amount of a CGU is determined based on value in use calculations using cash flow projections based on financial budgets approved by management covering a five-year period.167 c.notes to the financial statements 153 14. The recoverable amount was based on value in use and was determined at the cash-generating-unit ("CGU") of each individual subsidiaries. the cash flows were discounted at a rate determined by management on a pre-tax basis. Impairment test for Goodwill and Investment in Subsidiaries a.795 82.109 2006 RM'000 738. Allocation of goodwill Goodwill has been allocated to the Group's CGU identified according to business segment as follows: 2007 RM'000 Energy related shipping Other energy businesses Integrated liner logistics Non-shipping 689. The review led to the recognition of an impairment loss of RM2.
716.314 8.289.000 (2006: RM303.513 6.618 672 12.notes to the financial statements 154 Notes to the Financial Statements 31 March 2007 (cont’d) 15.259 2.00% (2006: 3. Investments in Associates Group 2007 RM'000 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 Unquoted shares in Malaysia.351. at cost Unquoted shares outside Malaysia.102 583 2. 16. Investments in Subsidiaries Corporation 2007 2006 RM'000 RM'000 Unquoted shares at cost Loans and advances to subsidiaries 5. at cost Share of post-acquisition(losses)/profits Share of other post-acquisition reserves Less: Accumulated impairment losses Represented by: Share of net assets Loans to an associate 681 4.314 8. Details of the subsidiaries are disclosed in Note 37.618 11.314 – 8.407 5.314 .088 (620) (1.102 2.316 (1.299 968.314 – 8.50% (2006: 7.00% to 7.333 3.630.25% to 7.746 1.236.364.290 – – – – – – – – – – – – 8.50%) per annum.176 12.214) 2.618 – 11.632 Included in unquoted shares is preference shares of RM2.152) 3.314 – – 8. bear interest at rates ranging from 3.00%) per annum and are not repayable within 12 months from the balance sheet date.647.679.176 387 (945) 11.09% to 7.000) which bear interest at rates ranging from 5. The loans and advances to subsidiaries are unsecured.685 – 12.
at cost 6.634 46. Investments in Jointly Controlled Entities Group 2007 2006 RM'000 RM'000 Unquoted shares in Malaysia.814 166.948 39.265. and have no fixed term of repayment.00%).246 159.358 – 19.600 8.121 22.275 17.000 (2006: RM99. .00% (2006: 7. bear interest at rates ranging from 5.243 1.344 39.913 (801) 47.000) which is repayable by June 2010. 2006 RM'000 15. and have no fixed term of repayment except for loan to KEER-MISC Logistics Co Ltd.50% to 7. The summarised financial information of the associates are as follows: 2007 RM'000 Assets and liabilities Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Results Revenue (Loss)/profit for the year Details of the associates are disclosed in Note 38.172 213.604 19.336 1.183 37.149 195 20.528 139. amounting to RM95.186 503.112 213. Investments in Associates (cont'd) The loans to an associate is unsecured.049 9. at cost Unquoted shares outside Malaysia.476 Share of post-acquisition profits Share of other post-acquisition reserves Represented by: Share of net assets Loans to jointly controlled entities The loans to jointly controlled entities are unsecured.948 99.632 12.172 290.385 8.966 8.697 1.604 20.528.940 14.511 7.060 47.474 (327) 11. interest-free.notes to the financial statements 155 16.
non-current liabilities.784 13.344 518.307 . non-current assets.115 209.479 68. income and expenses of the jointly controlled entities are as follows: 2007 RM'000 Assets and liabilities Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Results Revenue Expenses Details of the jointly controlled entities are disclosed in Note 39. current liabilities.158 49.749 64.610 181.notes to the financial statements 156 Notes to the Financial Statements 31 March 2007 (cont'd) 17.814 429.314 98.679 304. 2006 RM'000 88.063 44. Investments in Jointly Controlled Entities (cont'd) The Group's aggregate share of the current assets.331 58.137 56.307 255.986 33.
960 196. Other Investments Group 2007 RM'000 Unquoted shares at cost Less: Provision for diminution in value Quoted shares at cost 41.956 – 38.394) 41.206 262.609 60. lubricants and consumable stores Spares Raw materials 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 183.127 13.641 66.448 2006 RM'000 43.691 235.370) 39.491 .185 51.577 235.956 12.041 85.713 37.974 1.500 – – 103.117 236.039 50.249 – 81.090 58.042 Market value of quoted shares 19.568 24.311 42.notes to the financial statements 157 18.302 Net realisable value: Bunkers.974 182.041 243.529 – 37.886 193.148 3.330 (1.529 13.481 – 103.090 1.143 42.778 14. Inventories Group 2007 RM'000 Cost: Bunkers.313 Corporation 2007 2006 RM'000 RM'000 38.280 (1.053 23.141 25. lubricants and consumable stores Spares – – 262.077 278.390 239.148 3.
473 Less: Provision for doubtful debts: Third parties Subsidiaries Fellow subsidiaries Associates Trade receivables.608 17 20.710 159.892 (32.109.023 3.757 1.678 398.332 2.260 – 290 161 – 326.137 2.721.487.290.699 122.582 3.784 7.857 287.011) – (87) (41.889) (2.204 193.676) – (2.614 3.868 .277 435.745) 237.428 1.452 – 732 (15) – – 717 5.534 8. net Other receivables Amount due from related parties: Subsidiaries Holding company Fellow subsidiaries Associates Jointly controlled entities Deposits Prepayments Others (72.679.notes to the financial statements 158 Notes to the Financial Statements 31 March 2007 (cont'd) 20.805) 1.771 5.274 – – 290 502 4.622 (39.025) 433.214) – (96) (35.089.115 – 9.635 235.116 3.177 311.301 (87.077 64.357 – – – – 2.379 (2.479.688) (2.711 1.071) (87) (74.701 205.135 1.099 145.199 (2.810 98.563 6.357 1.762 53.228) 2.786) 578.199) 685.846 7.427 428.612 116 112.909 240.948) – (761) (96) (88.502 326.607.629 4.441.530.479.594 3.050) 309.834) 1.402 1. net (2.012.945 302.307 1. Trade and Other Receivables Group 2007 RM'000 Trade receivables Third parties Subsidiaries Holding company Fellow subsidiaries Associates Jointly controlled entities Due from customers on contracts (Note 21) 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 1.703 (2.853 1.605.672 40.614 3.904 – 1.412.945 – 620.434 28 – 720.822 Less: Provision for doubtful debts: Others Other receivables.
The Group's normal trade credit terms ranges from 7 to 90 days (2006: 7 to 90 days). Amount due from group companies The amounts due from holding company. c.000) which bears interest rate of 4.79% (2006: 3.000) which bears interest at rates ranging from 5. there is no significant concentration of credit risk.09% to 5. interest-free and have normal credit terms which ranges from 15 to 30 days (2006: 15 to 30 days). fellow subsidiaries and subsidiaries are unsecured. Credit risk The Group's primary exposure to credit risk arises through its trade receivables. Other credit terms are assessed and approved on a case-by-case basis and each customer has a maximum credit limit. . Trade receivables are non-interest bearing. d.951. amounting to RM Nil (2006: RM168. b. Amount due from associates The amounts due from associates are unsecured. interest-free and have no fixed terms of repayment except for the amount due from AET Holdings (L) Pte.47% to 5. Trade and Other Receivables (cont'd) a. where payment in advance is normally required. interest-free and have normal credit terms which ranges from 15 to 30 days (2006: 15 to 30 days).50%) per annum.200.notes to the financial statements 159 20. The Group's trading terms with its customers are mainly on credit. Ltd. In view of the aforementioned and the fact that the Group's trade receivables relate to a large number of diversified customers. Credit risk is also monitored and assessed in the Management Credit Committee meetings held at least once in every 2 months which comprises senior management team members of the Group.510.50% (2006: 4.47%) per annum and amount due from Puteri Intan Satu (L) Private Limited amounting to RM62. Amount due from jointly controlled entities The amounts due from jointly controlled entities are unsecured. except for new customers.000 (2006: RM66.
456 2.587 (2.192) 227. Deposits and Bank Balances Group 2007 RM'000 Deposits with licensed banks Cash and bank balances 849.757.564 2006 RM'000 2.975. Due from/(to) Customers on Contracts Group 2007 2006 RM'000 RM'000 Construction contract costs incurred and recognised profits to date Less: Progress billings 3.116 339.867 (1.853 (89.753) 227.notes to the financial statements 160 Notes to the Financial Statements 31 March 2007 (cont'd) 22.214.171.1247 3.188.403 487.026 3.969 Corporation 2007 2006 RM'000 RM'000 272.360 1.368. Cash.399 3. Marketable Securities Group and Corporation 2007 2006 RM'000 RM'000 Shares quoted in Malaysia.558 462.675 287.558 735.981 17.442) 213.425. at cost Market value of quoted shares 851 1.411 302.204 2.570 668.411 1.675 1.196 Due from customers on contracts (Note 20) Due to customers on contracts (Note 25) Advances received on contracts (Note 25) The costs incurred to date on construction contracts include the following charges made during the financial year: Group 2007 2006 RM'000 RM'000 Depreciation of plant and equipment 18.428 (59.176) 213.600 .306 22.975.197 148.587 23.
070 68.049.650 149.507.618 – These represent carrying values of properties owned by the Group with the intention of disposing off in the immediate future.965.244 – 48.notes to the financial statements 161 24.753 1.430 312. Trade and Other Payables Group 2007 RM'000 Trade payables Third parties Subsidiaries Holding company Fellow subsidiaries Associates Jointly controlled entities Construction contracts: Due to customers (Note 21) Advances received (Note 21) Other payables Amount due to related parties: Subsidiaries Holding company Fellow subsidiaries Accruals and provisions Others 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 931.153.615 – 51.178 568.599 – – 1.073 119.545 2.974.015 2006 RM'000 – Corporation 2007 2006 RM'000 RM'000 172.530 3 – – 705.099 2.360 17.722 845.557 – – 1.893 2.831. The carrying amounts of the assets immediately before reclassification are not materially different from their fair value.205.458 236 59.051.762 263 17.150 2.418 102.897 2.723 1.196 998.915 1.456 1.980 – 263 88.659 21.190 787.127.557 14.282.628 130.186 2.542 1. Included in the assets for the Corporation are properties that are intended to be disposed off within the Group.593 1.476 2.599 102.180 2.831.362 529.509.006 – 21.213 51. 25.110 315.442 1. Non-Current Assets Classified as Held for Sale Group 2007 RM'000 Land and buildings 38.186 6.987 1.763 1.458 31 – – 691.705 1.312 2.932 1.670.176 .049.530 3 89.
13%) and 5. Trade and Other Payables (cont'd) a. c.00% to 6. interest-free and repayable upon completion of the liquidation exercise. accruals and provision Included in other payables is amount due to deconsolidated subsidiaries amounting to RM2. except for an amount due to MISC Capital (L) Limited and AET Inc.00% to 6.000). A provision has been recognised at the financial year end on expected warranty claims based on past experience of the level of repairs and returns.000 (2006: RM Nil) which bears interest at rates ranging from 5. The Group gives approximately one year warranty on certain products and undertakes to repair or replace items that fail to perform satisfactorily.000) and RM656. .070.800. Other payables. d.000 (2006: RM3. b.551. e. The amount due is unsecured. Limited of RM917. Amount due to jointly controlled entities The trade amounts due to jointly controlled entities have a normal credit term which ranges from 15 to 30 days (2006: 15 to 30 days). Amount due to associates The trade amounts due to associates have a normal credit term which ranges from 15 to 30 days (2006: 15 to 30 days). Amount due to group companies The amounts due to holding company. fellow subsidiaries and subsidiaries are unsecured.13% (2006: Nil) per annum respectively. Trade payables Trade payables are non-interest bearing and the normal trade credit terms granted to the Group ranges from 14 to 90 days (2006: 14 to 90 days). interest-free and have no fixed terms of repayment.00% to 6.926.000 (2006: RM1.072.012.13% (2006: 5.notes to the financial statements 162 Notes to the Financial Statements 31 March 2007 (cont'd) 25.
414 350.309 – 3.903 37.530.517 4.370 31.286 7.766 97.658 – – – – – – – – – 97.288 6.068.719 31.065 – 97.065 – – – – – Long Term Borrowings Secured: Term loans Fixed rate Floating rate Unsecured: Term loans – Floating rate US Dollar Guaranteed Notes 7.031.065 144.725 3.106 6.012 588.166.593 – 325.288 5.576.797.031.065 – – – – – – – – – – – – – – .400 363.478 284.891 1.202 4.909 2.771.093 609.309.771.106 6.496 97.065 97.853 – 4.997.725 6.399 186.177 199.607.500 160.748 – – 97.439 495.608 34.065 97.804.544.928.252 164.140 2.notes to the financial statements 163 26.517 6. Borrowings Group 2007 RM'000 Short Term Borrowings Secured: Term loans Fixed rate Floating rate Unsecured: Term loans Fixed rate Floating rate Islamic Private Debt Securities Al Murabahah Medium Term Notes 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 164.065 3.897.725 7.910 2.309.392 1.655 – – – – – – 12.00 each Total Borrowings Term loans Islamic Private Debt Securities Al Murabahah Medium Term Notes US Dollar Guaranteed Notes NCRPS 2.065 – 97.813 85.50% Non-convertible Cumulative Redeemable Preference Shares ("NCRPS") of USD1.771.
000 5.000 5.719. property. b.000 3. Share Capital Number of Ordinary Shares of RM1 Each 2007 2006 '000 '000 Authorised*: At 1 April 2006/2005 At 31 March Issued and fully paid*: At 1 April 2006/2005 At 31 March * Amount 2007 2006 RM'000 RM'000 5. Borrowings (cont'd) The secured term loans are secured by mortgages over certain ships. .000 5. The right to receive out of profit for the year of the subsidiaries a cumulative preferential dividend on each preferential dividend share at a net of 7.000 5.719. extendable for a period of five years subject to the approval of the preference shareholders.828 3. insurance of the relevant ships.719. The NCRPS shall rank pari passu with the ordinary shares in all respects except that the NCRPS shall rank in priority with regard to dividend payment of the subsidiaries.828 3.000.000.000. The NCRPS shall not be converted to ordinary shares of the subsidiaries. Other rights and restrictions attached to the preference share are set out in Article 3B of the Corporation’s Articles of Association.719. The preference shareholder is not entitled to any dividend nor to participate in the capital distribution upon dissolution of the Corporation but shall rank for repayment in priority to all other shares.828 3. The NCRPS shall not entitle its holder thereof to participate in the profits or surplus assets of the subsidiaries.828 3.000. The carrying value of the ships.000. property.50% (2006: 7.00 each issued to minority shareholders of certain subsidiaries shall confer the holders the following rights and privileges: a.000.000 5.notes to the financial statements 164 Notes to the Financial Statements 31 March 2007 (cont'd) 26.50% NCRPS of USD1. issued and fully paid share capital is one preference share of RM1 (2006: RM1).719. and e.50%) per annum.828 Included in the authorised. d. 27.000 5. property. plant and equipment together with charter agreements.000 5. The NCRPS shall be redeemed at any time at par together with a sum equal to arrears of the preferential dividend thereon after a period of ten years from the date of issue on 1 July 1997.719.000.000.828 3.828 3.828 3. plant and equipment. plant and equipment pledged is stated in Note 12(c). NCRPS The 7. c.719.719.
479 23.242 – – – 45.272 1.272 – – – – 1.955) 2.168 997.849.325.037.213 1.955.037.423 35.185 – – – – 41.382 23.989 35.501 – – – – 35.168 45.185 – 1.325.891) 2.342 1.280 2.060 – 23.272 – 35.150 2.029) 1.269.217 1.037.849.073.161) 1.185 – 1.372) (1.161) 1.536.536.073.342 – – – (21.342 – 41.242 – – – (55.217 – 35.348.185 41.037.157) 91.342 – – – – 1.854.273 2.217 – 35.018 1.989 1.217 – – – – – – – – – – – – – – – – – – – – – 1.348.225 2.018 (498.272 – 35.060 – – – 5.121.157) 127.029) 1.372) 207 207 996 996 – 45.217 – 35.989 1.505 106.232 ( 194) – 2.206 (946.536.235 (498.832 35.280 2. Other Reserves Other Capital Reserve RM'000 Capital Currency Statutory Redemption Translation Reserve Reserve Reserve RM'000 RM'000 RM'000 Revaluation Reserve RM'000 Group At 1 April 2005 As previously stated Effects of adopting FRS 121 At 1 April 2005 (restated) Currency translation differences: Group Associates Jointly controlled entities Transfer to retained profits At 31 March 2006 At 1 April 2006 As previously stated Effects of adopting FRS 121 At 1 April 2006 (restated) Currency translation differences: Group Associates Jointly controlled entities Transfer from retained profits At 31 March 2007 Corporation At 1 April 2005 As previously stated Effects of adopting FRS 121 At 1 April 2005 (restated) Currency translation differences At 31 March 2006 At 1 April 2006 As previously stated Effects of adopting FRS 121 At 1 April 2006 (restated) Currency translation differences At 31 March 2007 Capital Reserve RM'000 Total RM'000 35.notes to the financial statements 165 28.269.273.422 35.206 35.571.217 – – – – – – – – – – – – – – – – – – – – – 1.242 – 1.479 – 41.168 (1.273 2.232 (194) (21.273.217 – 35.049 .423 – – – – 35.272 1.217 1.242 – – – – – (586.018 1.989 (946.382 (586.185 41.185 – – – ( 137) 41.221 2.818) 1.272 – – – – 1.
350) (102) 65. d. Deferred Tax Group 2007 RM'000 At 1 April Recognised in income statement (Note 9) In Malaysia Outside Malaysia Currency translation differences At 31 March 65. Other Capital Reserve Other capital reserve represents the Group's share of its subsidiary's reserve. Other Reserves (cont'd) The nature and purpose of each category of reserves are as follows: a.941 3. Revaluation Reserve Revaluation reserve represents surplus arising from the revaluation of certain freehold land and buildings of the Corporation in 1984.649) 210 (181) 61.704 – – (102) 3. Currency Translation Reserve Currency translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of the Corporation and foreign operations whose functional currencies are different from that of the Group's presentation currency.602 – – (236) 3. e.373 (8. Statutory Reserve Statutory reserve is maintained by an overseas associate in accordance with the laws of the country.242 2006 RM'000 70.862 Corporation 2007 2006 RM'000 RM'000 3. 29.602 .366 3. b. f.notes to the financial statements 166 Notes to the Financial Statements 31 March 2007 (cont'd) 28.862 (4. Capital Reserve Capital reserve represents reserve arising from bonus issue in subsidiaries. c. Capital Redemption Reserve Capital redemption reserve represents reserve created upon the redemption of preference shares in a subsidiary.
547 Others RM'000 – 19 242 – 261 903 (909) 6 – – Total RM'000 72.923) 274 (181) 69.602 The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows: Deferred Tax Liabilities of the Group: Accelerated Capital Revaluation Allowances of Land RM'000 RM'000 At 1 April 2006 Recognised in income statement: In Malaysia Outside Malaysia Currency translation differences At 31 March 2007 At 1 April 2005 Recognised in income statement: In Malaysia Outside Malaysia Currency translation differences At 31 March 2006 68.151) 67.649 – – (102) 3.547 – – (181) 3.862 – 3.416) (102) 72.422) – 68.389) (8.183 61.notes to the financial statements 167 29. Deferred Tax (cont'd) Group 2007 RM'000 Presented after appropriate offsetting as follows: Deferred tax assets Deferred tax liabilities 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 (2.298) (8.508 (2.366 – 3.602 3.366 3.772 (3.961 (2.678 85.324 (4.961 3.051 80.508 .366 3.942) 32 – 66.013 65.941) 64.242 (1.
399 12.153) 66 (2.206 19.646) (1.446) (9. .674 – – 289.715 36.064 289.675 486.383) 7.220 2006 RM'000 408.726) (64) (8.366 2006 RM'000 3.811 66 (1.602 (1.064 – – 466.603) (4. Deferred tax assets have not been recognised for certain subsidiaries as these subsidiaries have a recent history of losses.359) (4.notes to the financial statements 168 Notes to the Financial Statements 31 March 2007 (cont'd) 29.766 Corporation 2007 2006 RM'000 RM'000 466.671 66 (6.436) (14.674 3.236) 7. Deferred Tax (cont'd) Deferred Tax Assets of the Group: Tax Losses and Unabsorbed Other Capital Payables Allowances RM'000 RM'000 At 1 April 2006 Recognised in income statement: In Malaysia Outside Malaysia At 31 March 2007 At 1 April 2005 Recognised in income statement: In Malaysia Outside Malaysia At 31 March 2006 Deferred tax liabilities of the Corporation arises from revaluation of properties: 2007 RM'000 At 1 April 2006/2005 Currency translation differences At 31 March 2007/2006 Deferred tax assets have not been recognised in respect of the following items: Group 2007 RM'000 Unused tax losses Unabsorbed capital allowances Others 542.967) Others RM'000 (320) (35) (32) (387) (180) (140) – (320) Total RM'000 (6.646) The unused tax losses of the Corporation relate to the loss making non-resident ships and can be utilised to offset against future taxable profits.885 58.359) (1.602 (236) 3.967) – – (4.704 (102) 3.106 591.967) (538) (98) (5.
087 (599.640 12.555 – – 476. plant and equipment Proceeds from disposal of marketable securities Proceeds from liquidation of a subsidiary Proceeds from disposal of associates Interest received Net cash (used in)/generated from investing activities (4.135) (1.694 (3.544) 2006 RM'000 (3.notes to the financial statements 169 30.635) Corporation 2007 2006 RM'000 RM'000 (3.754) 64.096.893) – (360.764) (23.403.000) (1.390 2.969) (2.920.966) (17.011 177.537.095) – – (23.184 – (1.087 – – – – (1.314) – (403.385 81.022) (181.377 – – 173.134.858) – – (400.118.326.045.501 – 107.519) (181.192 96.609.228 (2.873.305) – – – 16.453) (2.012 1.318) (12.407) .114.123) Corporation 2007 2006 RM'000 RM'000 – 96.467 2.640.114. Cash Flows from Financing Activities Group 2007 RM'000 Drawdown of term loans Drawdown of Islamic Private Debt Securities Repayment of term loans Loans to a jointly controlled entity Repayment of loans from associates and jointly controlled entities Repayment of Islamic Private Debt Securities Dividends paid to shareholders of Corporation Dividends paid to minority shareholders of subsidiaries Repayment of preference shares Interest paid Net cash used in financing activities 1.856) – (8.620 354.507) (347.664) – – 607.121) 2006 RM'000 88. property.232 823.047.285 24. Cash Flows from Investing Activities Group 2007 RM'000 Purchase of ships.664) (119.077) – 2.176 – (1.849 – 954.112 (1. property.684.580) (1.700) – – 22.399.867 2. plant and equipment Purchase of additional shares in subsidiaries Acquisitions of associates and jointly controlled entities Investments in subsidiaries Repayment of loans from subsidiaries.911) 31.530 266.011 – – 111.000) (1.878 – – – 125.169.085 364.966) – – (46.312) (1.557) (49.014) – – – – – (400. net of issuance Drawdown of loans from a subsidiary Dividends received from Quoted investments Unquoted investments Redemption of preference shares from a subsidiary Proceeds from disposal of ships.013) (254.095) (14.115 (2.261 – 449.096.
741 3.207 19.149 126.382 – 9.198 154.236 – 2.391 6. unless otherwise stated.587. The directors are of the opinion that the transactions below have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from that obtainable in transactions with unrelated parties.847 185.063 445.404 – 1.687 158. lubricants and spare parts Purchase of service for repairs.077 – 5.819 2.538 – 592.909 57.992.045. Purchase of goods and services Purchase of bunkers.791 48.237 63.131 13.594 13.notes to the financial statements 170 Notes to the Financial Statements 31 March 2007 (cont'd) 32.049 11. conversion of ships and drydocking Purchase of crew service Net transfer of ships Purchase of information technology services Management fee Manpower fee 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 2. Group 2007 RM'000 Related parties a.131 9.135 – 11. Provision of shipping and shipping related services Charter hire revenue Forwarding charges Warehouse service Haulage service Fabrication contract service b.149 .510 71.130 – – – – 316. set out below are other significant related party transactions.696 188. Significant Related Party Transactions In addition to related party disclosures elsewhere in the financial statements.917 188.236 6.761 – 19.029 – – – – 923.696 160.391 – 9.
309.783 566.304 3.471 347.438. Capital Commitments Group 2007 RM'000 Capital expenditure Approved and contracted for: Ships.068 9.388 144.463 781.524 20 6. property.750 5.608.432.622 6.524 20 6.190 380 2.802 12.268.584 9.601.846.069 998.notes to the financial statements 171 33.754 117.615 319.611 112.753 .190 – 2.680 – 4.128 11.097 461.990.297.771. plant and equipment Technology projects Investments Approved but not contracted for: Ships.597 12.533 2.463 289.445 26.033 5. Non-Cancellable Operating Lease Commitments – Group as Lessee Group 2007 RM'000 Future minimum rentals payable: Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 822.463.125 6.952.145 27.787 7. property.969.754 117.932 2.737 5.537 2.680 – 3.444.884 144.080 506.918.612 9.072 1.942 26.712.268 894.973.983.033 5. Commitments a.942.746 27. plant and equipment Technology projects Investments 2006 RM'000 Corporation 2007 2006 RM'000 RM'000 4.451.320 b.268 1.241.442.372 8.435.
472.055.480. iii. Secondary information is reported geographically. with each segment representing a strategic business unit that serves different markets.notes to the financial statements 172 Notes to the Financial Statements 31 March 2007 (cont’d) 34. repairing and heavy engineering works.068. Contingent Liabilities Group Corporation 2007 2006 RM'000 RM'000 Unsecured Letters of guarantee issued in respect of banking facilities extended to third party agents Indemnity provided in respect of banking facilities extended to subsidiaries Bank guarantees extended to customers for performance bond on contracts 2007 RM'000 2006 RM'000 25. petroleum tanker services. Integrated liner logistics – comprises liner services. The operating businesses are organised and managed separately according to the nature of the service provided. management has decided to change the composition of the segments to better reflect the nature of its businesses.012 26.181 – 225. Business segments During the financial year.529 12. and chemical tanker services. Energy related shipping – the provision of liquefied natural gas ("LNG") services.831 251.591 – 6.560 177. and other diversified businesses. Other energy businesses – operation and maintenance of offshore floating facilities. .955 5. ii.096 35.505 6. Segment Information a. and shipbuilding. b. Non-shipping – fleet management services.744 – 150.574 – 5. The Group is organised on a worldwide basis into four major business segments: i.304 7. haulage. iv. marine education and training. trucking and warehousing and agency businesses. Reporting Format The primary segment reporting format is determined to be business segments as the Group's risks and rates of return are affected predominantly by differences in services produced.
743 – 2.956 1.904 3.892.943 2.930 2.992.092.252 – 11.099.401 6.105 – – 192.786 9.051 (491) 5.036 323.945 .190 – – – – 27.329 473.341.131 236.571.518 15.427 (347.635.296 27.685 – 4.380) 2.268 70.448.795 1.789.493 2.542 – 48.644. Segment Information (cont'd) b.837 4.720 44.425 2.640 (194.499.523 739.565.034.190 173 Other Information Capital expenditure Depreciation Impairment losses Non-cash expenses other than depreciation and impairment loss 2.975 – 21.801 – 1.250.310 (33.972.616 3.896.472 2.399.474.889 3.510.497.497) (3.022 1.992 (3.025 82.964 34.695 2.029 41.418 1.531 4.819 2.505) – – Results Segment results Other operating income * Operating profit Finance costs (unallocated) Share of loss of associates Share of profit of jointly controlled entities Profit before taxation Taxation Profit for the year 2.358 27.159 11.654) 11.448.747.915 – 34.930 notes to the financial statements Assets and Liabilities Segment assets Investments in equity method of associates Investments in equity method of jointly controlled entities 14.325 8.358 9.979.945 – – – – 4.204) (224.837 4.35.989.022 1.074.042. Business segments (cont'd) 31 March 2007 Energy Other Related Energy Integrated Shipping Businesses Liner Logistics RM'000 RM'000 RM'000 NonShipping RM'000 Total RM'000 Eliminations Consolidated RM'000 RM'000 Revenue 6.743 2.757) (491) 28.930.399.685 145.044 357.138.131 2.074.046 623.198.685 Segment liabilities 503.273.404 7.820 503.315.599 (693.107 – 2.427 4.360.734.268 70.194) 3.954.140 134.360.945 2.932 (491) 28.568) 176.364 (18.137 1.676 227.625 2.
482 1.003.500 (15.983 2.613.602 notes to the financial statements Assets and Liabilities Segment assets Investments in equity method of associates Investments in equity method of jointly controlled entities 15.808 1.182.632) (1.190) 2.454.531) 47.476 630.898 3.870.444 139.636.503.213 – – – – 27.703 2.600 87.130 15.Notes to the Financial Statements 31 March 2007 (cont'd) 35.221.326.637.040.286 3.830 22.490.128.522 11 139.432.477 9.623.891 1.515 3.339 12.426.792 (30.354 40.793 – 7.441 585.600 138 274.956 (348.398) 15.726 70.957 * Include gain on disposal of ships of RM436.421 63.290 – 4.830 2.930) (146.272.426.650 7.213 174 Other Information Capital expenditure Depreciation Impairment losses Non-cash expenses other than depreciation and impairment loss 1.956 (62.496 – – 1.783.957 – – – – 3.404 11.080 2.118 114.174) – – Results Segment results Other operating income * Operating profit Finance costs (unallocated) Share of profit of associates Share of profit of jointly controlled entities Profit before taxation Taxation Profit for the year 2.147 4. Business segments (cont'd) 31 March 2006 Energy Related Shipping RM'000 NonShipping RM'000 Other Energy Integrated Businesses Liner Logistics RM'000 RM'000 Total Eliminations Consolidated RM'000 RM'000 RM'000 Revenue 6.773.182.076.747.416 2.926 – 73.535 103.404 11.609 – 40.830 14.069.719 – 6.117 27.600 87.384.458 1.215.947.900.074.535 11.476 27.905 112.630 3.476 9.557 1.653 – – – – 795 11.209.039 9.477 9.448) 1. Segment Information (cont'd) b.654.105 9.471.204 – – 3.325.279 12.557 1.553) 10.023 291.969 2.000 (2006: RM202.559.030 27.290 Segment liabilities 139.458 (1.169.310.339 12.326. .471.410.633 (422.000).
493 1.893 173 2.954.326.964.500 4. Transfer prices between business segments are set on an arm's length basis in a manner similar to transactions with third parties. its home country.748 3. These transfers are eliminated on consolidation.290.788. Segment Information (cont'd) c.720.753 17.753 433. .120.112 650 2.747.749. integrated liner logistics and non-shipping.notes to the financial statements 175 35. they operate in five principal geographical areas of the world. Allocation Basis and Transfer Pricing Segment results.343 1.908. Segment revenue.973 543 4.207. the Group's areas of operations are principally energy related shipping.945 27.633 7.557 d.022 2.344.198.612 1.655.035 94.253 10.983.437.744 1. other energy businesses.045.740.080 27.399. In Malaysia.154.882 3. expenses and results include transfers between business segments.683 385.965 1. Geographical Segments Although the Group's four major business segments are managed on a worldwide basis.623. Unallocated items comprise mainly corporate assets.248 4.722 77. liabilities and expenses.125.066 190 826.146 11. The Group also operates energy related shipping and integrated liner logistics in other regions in the world as follows: • • • • Asia and Africa Europe Australasia The United States of America Asia and Africa RM'000 31 March 2007 Revenue Segment assets Capital expenditure 31 March 2006 Revenue Segment assets Capital expenditure Malaysia RM'000 Europe RM'000 Australasia RM'000 The United States of America Consolidated RM'000 RM'000 730.793 19. assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.292 405.363.707 288 692.105 3.786 4.302 1.
the Group's income and operating cash flows are substantially independent of changes in market interest rates. foreign currency risk.notes to the financial statements 176 Notes to the Financial Statements 31 March 2007 (cont’d) 36. in which the Group agrees to exchange. 1. Financial Risk Management Objectives and Policies The Group's financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Group's businesses whilst managing its interest rate risks (both fair value and cash flow). Borrowings obtained at fixed rates expose the Group to fair value interest rate risk. b. liquidity risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below. the difference between fixed and floating rate interest amounts calculated by reference to an agreed-upon notional principal amount. The Group's interest rate risk arises primarily from interest-bearing borrowings. credit risk and bunkers price risk. The Group's interest-bearing financial assets are mainly short term in nature and have been mostly placed in time deposit and overnight placement. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. As the Group has no significant interest-bearing financial assets.730 – . Financial Instruments a. the Group had entered into interest swaps with the following notional principal amount and maturities: Notional Amount 2007 2006 RM'000 RM'000 More than 5 years The fixed interest rates relating to interest rate swaps at the balance sheet date is 5. Borrowings at floating rates expose the Group to cash flow interest rate risk. and has been throughout the year under review. the Group's policy that no trading of speculative nature in derivative financial instruments shall be undertaken. As at balance sheet date. the Group enters into interest rate swaps. The Group's interest rate risks arise from the volatility of the benchmark interest rates both in Ringgit and US Dollar (which are its main borrowing currencies).09% (2006: Nil). at specified intervals. The Group manages this by keeping 90% or more of its borrowings at fixed rates of interest. The Group manages its interest rate exposure by maintaining a mix of fixed and floating rate borrowings. Interest Rate Risk Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. It is. To manage this mix in a costefficient manner.415.
50 (177.680) – – – (236.157.08 849.180) – (186.470.395.757.197 – – – – – .45 5.80 (97.63 339.40–7.065) – – – – – – – – – – Floating Rate Deposits with licensed banks notes to the financial statements At 31 March 2006 Group Fixed Rate Term loan US Dollar Guaranteed Notes NCRPS 26 26 26 23 26 4.216) 4.89 2. Note Interest rates % Within 1 Year RM'000 1–2 Years RM'000 2–3 Years RM'000 3–4 Years RM'000 4–5 Years RM'000 More Than 5 Years RM'000 At 31 March 2007 Group Fixed Rate Term loan US Dollar Guaranteed Notes Islamic Private Debts Securities NCRPS 26 26 26 26 23 26 2.50 2.288) – – 177 Floating rate Deposits with licensed banks Term loan Corporation Floating rate Deposits with licensed banks 23 2. the range of interest rate as at the balance sheet date and the remaining maturities of the Group's and the Corporation's financial instruments that are exposed to interest rate risk.14–6.478) – (137.15 5.733) (993.680) (27.45 5.560.00–6.00–7.328) – (7.00–6.00–7.677) – – 2.13 7.00–4. Interest Rate Risk (cont'd) The following tables set out the carrying amounts.769) (31.106) – – Floating Rate Deposits with licensed banks Term loan Corporation Fixed Rate Islamic Private Debts Securities 26 23 2.279) (334.80 7.414) – (128.376.13 3.318) (2. Financial Instruments (cont'd) b.853) – – – – – (1.36.614) – (1.071) (60.538) – – – – (49.964) (86.397) – – – – (287.570 (360.065) – (178.43–7.202) (140.077) (208.007) – (97.558 3.748) – – – (199.360 (221.14 (249.070) – – – (52.574) – (1.83–5.724) (2.69–4.15 272.
whilst almost 64.400) – 31.856) 99.661 27. The net unhedged financial receivables and payables of the Group companies and that of the Corporation that are not denominated in their functional currencies are as follows: Functional Currency of Group Companies At 31 March 2007 Ringgit Malaysia United States Dollar Net Financial Receivables/(Payables) Held in Non-Functional Currencies United Ringgit States Sterling Australian Singapore Malaysia Dollar Pound Dollar EURO Dollar Total RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 – (378.707) .837 8.856) (378.notes to the financial statements 178 Notes to the Financial Statements 31 March 2007 (cont'd) 36.718 7.804 50.912) Functional Currency of Corporation At 31 March 2007 United States Dollar At 31 March 2006 United States Dollar (347.614 1.108) (404.210) (184.478 (252.066 5.065 19.568) (328.110 (1) 5.303 35.914 (4.380 (58) 7.675 15.528) (411.517 115.733 7.097) 5.108) 10. Sterling Pound ("GBP").427 2. The Group maintains a natural hedge.190 29.427 – 10.233 (300.863 2.910 9.61% of Group's sales are denominated in currencies other than the unit's functional currency of the operating unit making the sale. Approximately 29.273 – 99.281 5.780 18.162 37.698 7.851 26 8.92% of costs are denominated in the unit's functional currency.656 (344.071) – 42. Euro ("EUR") and Singapore Dollar ("SGD").110 31.977) At 31 March 2006 Ringgit Malaysia United States Dollar – (404. Foreign exchange exposures in transactional currencies other than functional currencies of the operating entity are kept to an acceptable level.782 (326. The currencies giving rise to this risk are primarily Ringgit Malaysia ("RM"). Australian Dollar ("AUD"). Foreign Currency Risk The Group is exposed to transactional currency risk primarily through sales and purchases that are denominated in a currency other than the functional currency of the operations to which they relate. by borrowing in the currency of the country in which the property or investment is located or by borrowing in currencies that match the future revenue stream to be generated from its investments.600 15.066 39. wherever possible. Financial Instruments (cont'd) c.273 948 36.
061 3.514 699 1.217.494 d.780 – 9. are expected to be sufficient to cover its cash flow needs (excluding merger and acquisition activities) in the next financial year.996 – 491.608 270 27. the Corporation has unutilised Murabahah Commercial Paper/Medium Term Notes Programme amounting to RM900.410 48. The Group's holdings of cash and short term deposits.492 7.000.392 – 48. Any shortfall and additional cash requirements arising from the Group's merger and acquisition activities can be met by additional financing.407 9.081 1.notes to the financial statements 179 36. among others.425. Liquidity Risk As at 31 March 2007.317.466 – 8.080 32.514 – 32.000 (2006: RM3. bonds issuance and structured financing.260 307.928 – 11.993 340.553 348.000 which could be used for working capital purposes.076 – 30 9. Financial Instruments (cont'd) c.000).080 1. Foreign Currency Risk (cont'd) The cash and bank balances of the Group companies and that of the Corporation that are not denominated in their functional currencies are as follows: Cash and bank balances Held in Non-Functional Currencies United Ringgit States Sterling Australian Singapore Malaysia Dollar Pound Dollar EURO Dollar RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Functional Currency of Group Companies At 31 March 2007 Ringgit Malaysia United States Dollar Total RM'000 – 307.392 9.180 173.993 – 7. include bank borrowings.969.260 7. the Group had at its disposal cash and short term deposits amounting to RM2.993 – 9.256.426 – 5.734 437.928 3. The Group's strong balance sheet provides it with financial flexibility in determining the optimum financing source.392 44. together with committed funding facilities and net cash flow from operations.233 1. As at 31 March 2007.733 9. .407 – 3.564.334 5.821 1.878 60.054 Functional Currency of Corporation At 31 March 2007 United States Dollar At 31 March 2006 United States Dollar 150. The various options.466 11.410 27.197.546 At 31 March 2006 Ringgit Malaysia United States Dollar – 1.197.492 8.
042 * – – The fair value of non-current unquoted shares is not disclosed as it is not practicable to determine the fair value with sufficient reliability.448 * 1.960 – (2.254.713 * 1. marketable securities and non-current investments.725 ) – 278. The credit risk of the Group's other financial assets. The Group trades only with recognised and creditworthy third parties. Fair Values The carrying amounts of financial assets and liabilities of the Group and of the Corporation at the balance sheet date approximated their fair values except for the following: Group Carrying Amount Fair Value RM'000 RM'000 Corporation Carrying Amount Fair Value RM'000 RM'000 Note At 31 March 2007 Non-current quoted shares Non-current unquoted shares Forward bunkers contract Fixed rate: Term loans Islamic Private Debts Securities US Dollar Guaranteed Notes Interest rate swap At 31 March 2006 Non-current quoted shares Non-current unquoted shares Fixed rate: Term loans US Dollar Guaranteed Notes * 18 18 36(f) 26 26 26 36(b) 196.633) (3. with a maximum exposure equal to the carrying amount of these financial assets. The Group's profit are affected by changes in the price of bunkers. It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures.691 41.956 – – (97. f.031.313 * (1.892. receivable balances are monitored on an ongoing basis and the Group's exposure to bad debts is not significant. g.117 39.343.065 ) (3.633) – – 18 18 26 26 193. The Group manages this risk by entering into forward contracts for the price of bunkers for a 6 month period.039 37.558.notes to the financial statements 180 Notes to the Financial Statements 31 March 2007 (cont'd) 36.529 – – 24. .429) (97.172) (10.120.065) – – 25. Credit Risk The Group's credit risk is primarily attributable to trade receivables. In addition.630) 12. arises from default of the counterparty. supply and political climates.246.038) (4. Financial Instruments (cont'd) e.517) 235.657 (2.771.657 – (97.689) (4.407) (97.752) 13. Bunkers Price Risk Bunkers price risk is the risk that the future bunkers price will flutuate because of the effects of demand. which comprise cash and cash equivalents.185 38. The Group does not have any significant exposure to any individual customer or counterparty nor does it have any major concentration of credit risk related to any financial assets.886 (1.
Forward bunkers contract Fair value is estimated as the difference between the hedged bunker price and average market price multiplied by the unutilised hedged bunker units. Bhd. iii. Term loans and Islamic Private Debts Securities Fair value has been determined using discounted estimated cash flows. ii. Financial Instruments (cont'd) g. US Dollar Guaranteed Notes Fair value is determined by reference to stock exchange quoted market prices on the balance sheet date. Subsidiaries and Activities Country of Incorporation Malaysia Principal Activities Investment holding and provision of management services Shipping Shipping Shipping Shipping Shipping Dormant Effective Interest (%) 2007 2006 100 100 Name of Company PETRONAS Tankers Sdn. MISC Ship Management Sdn. Bhd. Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia 100 100 100 100 100 100 100 100 100 100 100 100 . Bhd. The discount rates used are the current market incremental lending rates for similar types of borrowing. 37. Puteri Firus Sdn. Puteri Intan Sdn. Fair Values (cont'd) The methods and assumptions used by management to determine fair values of financial instruments other than those whose carrying amounts reasonably approximate their fair values are as follows: i. Non–current quoted shares Fair value of these non-current quoted shares is determined by reference to stock exchange quoted market bid prices on the balance sheet date. Bhd. Puteri Nilam Sdn.notes to the financial statements 181 36. v. Puteri Zamrud Sdn. Bhd. iv. and is calculated as the difference between the present value of the estimated future cash flows at the contracted rate compared to that calculated at the market rate at the balance sheet date. Interest rate swap The fair value of the interest rate swap is the amount that would be payable or receivable upon termination of the position at the balance sheet date. Bhd. Puteri Delima Sdn. Bhd.
Bhd. MSE Holdings Sdn. Subsidiaries and Activities (cont'd) Country of Incorporation Principal Activities Effective Interest (%) 2007 2006 100 100 100 100 100 100 100 65 Name of Company MISC Enterprises Holdings Sdn. MISC Information Technology Sdn. Bhd. ship repairing and engineering works Malaysia Ship repairing and engineering works Malaysia Processing of copper grit Sludge disposal management Process equipment for petrochemical. Bhd. MISC Properties Sdn.notes to the financial statements 182 Notes to the Financial Statements 31 March 2007 (cont'd) 37. Malaysia Malaysia 100 100 65 100 . Malaysia 100 65 MMHE-ATB Sdn. Bhd. 70 – MSE Corporation Sdn. Bhd. Malaysia In-liquidation Malaysia Dormant Malaysia In-liquidation Malaysia Investment holding Malaysia Marine and Heavy Engineering Sdn. Bhd. Bhd. MISC Agencies Sdn. Malaysia Shipbuilding. 100 65 Techno Indah Sdn. Bhd. oil and gas and power generation plants Dormant Shipping agent and warehousing 100 65 MMHE-SHI LNG Sdn. Bhd. Bhd. Bhd. Malaysia 60 58 Malaysia Tank Cleaning Company Sdn.
MILS – Seafrigo Sdn.notes to the financial statements 183 37. Malaysia Malaysia Malaysia 100 100 60 100 100 – . Subsidiaries and Activities (cont'd) Country of Incorporation Principal Activities Effective Interest (%) 2007 2006 100 100 Name of Company MISA (B) Sdn. MISC Integrated Logistics Sdn. Bhd. Bhd. manage and operate a cold storage logistic hub MISC Agencies (Trengganu) Sdn. MISC Agencies (Sarawak) Sdn.) Ltd. * United Kingdom Japan 100 100 MISC Agencies (Japan) Ltd.V. Bhd. MISC Trucking and Warehousing Services Sdn.K. 100 65 100 65 MISC Agencies (Netherlands) B. Bhd. Bhd. Ltd. * 100 100 MISC Agencies (Singapore) Private Limited * Singapore 100 100 Leo Launches Private Limited * Singapore 51 51 MISC Ferry Services Sdn. Malaysia Malaysia 100 100 100 100 MISC Haulage Services Sdn. Bhd. Bhd. * Netherlands 100 100 MISC Agencies (Australia) Pty. # Australia 100 100 MISC Agencies (U. Bhd. Brunei In-liquidation Darussalam Malaysia In-liquidation Malaysia Shipping agent Shipping agent Shipping agent Shipping agent Port and general agent Shipping agent Launch operator Dormant Integrated logistics services Dormant Dormant Own.
Bhd. Bhd. Subsidiaries and Activities (cont'd) Country of Incorporation Malaysia Principal Activities Sterilisation and fumigation facilities Shipowning and ship management Shipowning and ship management Education and training for seamen and maritime personnel Shipping Shipping Shipping Shipping Shipping Shipping Investment holding Investment holding Investment holding Shipowning Ship management Effective Interest (%) 2007 2006 60 – Name of Company MILS – SterilGamma Sdn. Malaysia 100 100 Puteri Intan Satu (L) Private Limited Puteri Delima Satu (L) Private Limited Puteri Nilam Satu (L) Private Limited Puteri Zamrud Satu (L) Private Limited Puteri Firus Satu (L) Private Limited Puteri Mutiara Satu (L) Private Limited MISC Tanker Holdings Sdn. (formerly known as ESPL Fleet Management Sdn. Asia LNG Transport Sdn. Bhd. Bhd. Bhd. Bhd. Bhd. Bhd.notes to the financial statements 184 Notes to the Financial Statements 31 March 2007 (cont'd) 37. AET Shipmanagement (M) Sdn. Malaysia 51 51 Asia LNG Transport Dua Sdn. Bhd.) Malaysia Malaysia 100 100 100 100 . Malaysia 100 100 AET Petroleum Tanker (M) Sdn. Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia 100 100 100 100 100 100 100 100 100 100 100 100 100 100 MISC Tanker Holdings (Bermuda) Limited Bermuda 100 100 AET Tanker Holdings Sdn. Malaysia 51 51 Malaysian Maritime Academy Sdn.
Inc.notes to the financial statements 185 37. Inc. (formerly known as Pelican Offshore Services Company. Singapore 100 100 AET UK Limited United Kingdom 100 100 American Marine and Offshore Services Limited Cayman Islands 100 100 AET Offshore Services Company Inc.)# AET Holdings (L) Pte. 100 100 Offshore Marine Services. The United States of America 100 100 The United States of America The United States of America The United States of America Property owning Investment holding Ship rental services and lightering Lightering 100 100 MTL Petrolink Group 100 100 OMIP Inc.) AET Agencies Inc. Ltd. Subsidiaries and Activities (cont'd) Country of Incorporation Singapore Principal Activities Ship management Effective Interest (%) 2007 2006 100 100 Name of Company AET Shipmanagement (Singapore) Pte. Limited Bermuda 100 100 AET Tankers Pte. Ltd. Ltd. Malaysia Investment holding Shipowning and operations Commercial operation and chartering Commercial operation and chartering Shipping agent and lightering Lightering 100 100 AET Inc. The United States of America The United States of America 100 100 Harlink. Inc. (formerly known as Eagle Shipmanagement Pte. Ltd. Lightering 100 100 .
Subsidiaries and Activities (cont'd) Country of Incorporation Nuelink. Bhd.I. Nigeria Malaysia 60 51 60 51 Offshore Marine Ventures Sdn. Inc.notes to the financial statements 186 Notes to the Financial Statements 31 March 2007 (cont'd) 37. Nigeria Limited FPSO Ventures Sdn. storage and off-loading ("FPSO") facility Special purpose vehicle for issuance of US Dollar Guaranteed Notes Investment holding Dormant Operating and maintaining FPSO facility Owning and chartering of support vessels FPSO owner 100 100 MISC Offshore Floating Terminals (L) Limited Malaysia 100 100 MISC Capital (L) Limited Malaysia 100 100 MISC Offshore Holdings (Brazil) Sdn Bhd Malaysia 100 – M.C. The United States of America Malaysia Principal Activities Lightering Effective Interest (%) 2007 2006 100 100 Name of Company MISC International (L) Limited Investment holding Operating and maintaining floating production. Bhd.S. Malaysia 51 51 Malaysia Deepwater Floating Terminal (Kikeh) Limited Malaysia 51 51 .
Bhd. . * # Audited by firms of auditors other than Ernst & Young Audited by affiliates of Ernst & Young Malaysia 38. Sri Lanka 25 25 The financial statements of the above associates are coterminous with those of the Group. Associates and Activities Country of Incorporation Malaysia Principal Activities Automative solutions and related integrated logistic services Integrated logistics services Shipping agent Shipping agent and freight forwarding services Inland container depot Effective Interest (%) 2007 2006 60 – Name of Company BLG MILS Logistics Sdn. RAIS – MILS Logistic FZCO United Arab Emirates 50 – MISC Agencies (Thailand) Company Limited Thailand 49 49 MISC Agencies Lanka (Pvt) Limited Sri Lanka 40 40 Transware Logistics (Pvt) Ltd.notes to the financial statements 187 37. Bhd. Subsidiaries and Activities (cont'd) Country of Incorporation Malaysia Principal Activities Operating and maintaining FPSO facility Effective Interest (%) 2007 2006 51 51 Name of Company Malaysia Deepwater Production Contractors Sdn.
Transasia Pool Pte. Ltd.. Bhd. KEER – MISC Logistics Co Ltd. which uses management accounts up to 31 March 2007. Sudan Republic of the Marshall Island Sudan Switzerland Switzerland 50 50 50 – SL-MISC International Line Co. Ltd. (formerly known as SBM Espirito Santo Inc. Ltd.) Shipowning FPSO owner Operating and maintaining FPSO facility Operating and maintaining FPSO facility 49 49 49 49 – – SBM Operacoes Limitada Brazil 49 – The financial statements of the above jointly controlled entities are coterminous with those of the Group. Ltd.). (formerly known as SBM Espirito Santo Inc. Paramount Tankers Corp.notes to the financial statements 188 Notes to the Financial Statements 31 March 2007 (cont'd) 39. and SBM Operacoes Limitada which have financial years ended 31 December. SL-MISC International Line Co.. Jointly Controlled Entities and Activities Country of Incorporation Malaysia Singapore Singapore Principal Activities Shipowning Warehousing Ship management Transportation Shipowning Effective Interest (%) 2007 2006 51 50 50 – 50 50 Name of Company Red Harbour Sdn. Transware Distribution Services Pte. For the purpose of applying the equity method of accounting. SBM Systems Inc. Limited SBM Systems Inc FPSO Brasil Venture S. FPSO Brasil Venture S. Paramount Tankers Corp. the audited financial statements up to the year ended 31 December 2006 have been used and management accounts up to 31 March 2007 have been used for the transactions between 1 January 2007 to 31 March 2007...A.A. . Ltd. Transasia Pool Pte. except for Transware Distribution Services Pte. except for Paramount Tankers Corp.
On 24 September 2006. On 16 January 2007. On 2 June 2006. AET Petroleum Tanker (M) Sdn Bhd (“AETP”).000 (RM863. a company incorporated in Malaysia. a subsidiary of BLG AG. ii. operation and charter of crude oil tankers for the business of marketing and transporting crude oil. Bhd. (“Red Harbour”). On 17 November 2006. acquired 2 shares for RM1. collectively known as FPSO Brasil companies for the purpose of owning and operating of the FPSO Brasil at the final purchase price of USD103. the Corporation had completed the proposed acquisition of the 49% interest in SBM Systems Inc. the operator of a production sharing contract with PETROLEO BRASILEIRO S. a subsidiary of the Restis Group. a wholly-owned subsidiary of the Corporation had entered into a joint venture agreement with Golden Energy Tanker Holdings Corporation ("Golden Energy"). a wholly-owned subsidiary of the Corporation. . incorporated in Germany for the establishment of a joint venture company.A. (“MILS”) had entered into a joint venture agreement with Rais Hassan Saadi LLC for the establishment of a joint venture company. Bhd. The following three Bermudan joint venture companies have been incorporated. operating and managing a Floating Production Storage and Offloading ("FPSO") tanker facility for Shell Brasil Ltda.MILS Logistic FZCO ("RAIS"). MISC Integrated Logistics Sdn. On 14 November 2006.9 million bbls is to be named "FPSO Espirito Santo". namely RAIS . a company incorporated in Republic of the Marshall Island.331. for the purpose of undertaking the operation and maintenance of the FPSO.00 each in Red Harbour Sdn.00 representing 100% equity interest. The joint venture company with a paid up capital of USD250. Limited ("AET").417 (RM358..000 with MILS holding 60% equity whilst the remaining 40% equity is owned by BLG International Logistics GMBH & CO. f. for a contractual period of 15 years. The FPSO with a storage capacity of 1. Bhd. b. for the purpose of chartering the FPSO. Brazillian Deepwater Production Production Limited. d.000). AET Inc. Bhd. ownership. After the share issue. Brazilian Deepwater Production Contractors Limited.00 each to AETP.. with the proposal for MISC holding 49% and SBM holding 51% equity interest: i. offshore Brazil. MILS subscribed for 50% equity interest in RAIS for a total cash consideration of RM480.340.960. and SBM Espirito Santo Inc. and iii. for the purpose of offering integrated automotive logistics services in Malaysia. Red Harbour issued 6. c. a wholly-owned subsidiary of the Corporation. the Corporation entered into a joint venture agreement with SBM Holding Inc S. AETP retained 51% equity in Red Harbour whilst the remaining 49% equity is owned by Champ International Inc. On 9 June 2006. a wholly-owned subsidiary of the Corporation. e. Significant Events a. namely BLG MILS Logistics Sdn. (“MILS”) had entered into a joint venture agreement with BLG International Logistics GMBH & CO. procurement. KG. for a total consideration of RM2.776. The joint venture company was incorporated with a paid up capital of RM500.000) has been incorporated with AET and Golden Energy having 50% equity respectively in the joint venture company. On 27 March 2007. incorporated in Republic of the Marshall Island. for the establishment of a joint venture company for the purpose of acquisition. construction and installation of the FPSO.notes to the financial statements 189 40.228 shares for RM1. for the purpose of undertaking the engineering. Brazilian Deepwater Floating Terminals Limited.A. KG. ("SBM") for the purpose of owning. – PETROBRAS and BC-10 block located in the Campos Basin. MISC Integrated Logistics Sdn.
Workshop.287 14 20.831 . Workshop. Office Building Freehold 262.430 3.343 7. Warehouse. Office Complex & Container Yard Office Building & Container Yard 16 12. Bandar Sultan Sulaiman 42008 Port Klang Selangor Darul Ehsan No. Office Complex & Container Yard 16 59. Land. Tgkt. No. Warehouse. Office Building.2 Jalan Conlay 50450. Office Building.071 2. Land & Container Yard Leasehold/ 2087 1.500 Rented 31 17. Kuala Lumpur Lot 23 Lebuh Sultan Mohamad 1.119. Apartment Freehold 1. Plot 2 P. 7 Lorong Merpati 1 Jalan Bukit Sekilau Taman Tas Mahkota 25200 Kuantan.300 Vacant 27 153 6. Repair Shed & Container Yard Land & Container Container Yard Leasehold/ 2023 894. Pahang Darul Makmur Blok-H. Kuala Lumpur Wisma MISC No.326 15 1.600 Rented 33 32.560 Cargo Cum.492 Vacant Land & Container Yard Cargo Cum.221.T. Land.2 Jalan Conlay 50450.661 8.117 Vacant 24 103 5. PN26618) Mukim Kapar.267 4. Double Storey Semi-Detached House Freehold 4.1 Mount Pleasure Apartment 12000 Batu Feringghi Pulau Pinang Lot 33835 (Title No. Repair Shed & Container Yard Leasehold 2089 2. 2113 Air Keroh Industrial Estate Melaka Leasehold/ 2091 241.properties owned by MISC Berhad and its subsidaries 190 Properties Owned by MISC Berhad and its Subsidiaries 31 March 2007 Tenure & Year Lease Expires Approx Age of Existing Bldg/Land Use (years) Net Book Value RM'000 Area in sq ft No Location Malaysia 1. 7 Unit No. Daerah Klang Selangor Darul Ehsan Lot PLO 137 & 138 Tebrau II Industrial Estate Johor Darul Takzim Description Land Freehold 63.
Tengku Ampuan Zabedah G 9/G.415 Land Leasehold/ 2097 1. Repair Shed & Container Yard Land. Tanah Daerah Pekan Kuching 16.185 Land 85. No. Section 66. Office Building & Warehouse Leasehold/ 2060 47. Perindustrian Pasir Gudang. Mukim Plentong Johor Darul Takzim 11.021 3 Storey Shop Office 1.978 Vacant Land 11 18. Office Building. Pelabuhan Klang Selangor Darul Ehsan 13.760 . Lot 1411. Section 66. Seksyen 7.543 Land Leasehold/ 2099 107.properties owned by MISC Berhad and its subsidaries 191 No Location Malaysia (cont'd) 9. Tanah Daerah Pekan Kuching 15. Jalan Keluli 3 Kaw. 24300 Kemaman Terengganu Darul Iman Leasehold/ 2025 217. Precint 3. Jln. Lot 36. Lorong EWAN 88000 Kota Kinabalu 14. Section 9. 18.987 10 4.413 Vacant Land 11 14.649 10. Seksyen 14 Shah Alam Selangor Darul Ehsan 12. Lot 568-615 Mukim 16 Daerah Seberang Perai Utara Pulau Pinang Description Tenure & Year Lease Expires Area in sq ft Approx Age of Existing Bldg/Land Use (years) Net Book Value RM'000 Land. Warehouse. Tingkat Bawah dan Tgkt 1 Wisma Takada Jalan Gaya.232 Land Leasehold/ 2055 Leasehold/ 2046 Leasehold/ 2094 227. & Container Yard Freehold 752. Lot 2115. Fasa 1A Pulau Indah Industrial Park (West Port).000 MISA KK Office 13 1.752 Cargo Cum.800 10 968 Land. Shah Alam Selangor Darul Ehsan 17.662 Office Premises Leasehold/ 2092 6. Workshop.725. PLO 516.800 Office Building & Container Yard 12 3. Office Building. Office Complex & Container Yard 15 30.8.296 Vacant Land Vacant Land Rented 10 4.522 Office Building & Warehouse 7 10. Sebahagian dari Lot PT 4593 Kawasan Perindustrian Kerteh Mukim Kerteh.
24007 Kemaman. PTD 65618 Mukim Plentong. Open Yard 1203. PTD 65615 Mukim Plentong. Plot 3. Kemaman Supply Base. Johor Bahru.050 Staff Quarters 28 – 4 storey Residential Flats Leasehold/ 2044 130. Lot 154. Shipbuilding & Engineering Fabrication Yards Ancillary Facilities & Office Buildings Staff Quarters 33 323.325 Land.307. Phase 1. Workshops & Office Buildings Leasehold/ 2040 5. PTD 65617 Mukim Plentong.573 Shiprepair.properties owned by MISC Berhad and its subsidaries 192 Properties Owned by MISC Berhad and its Subsidiaries 31 March 2007 (cont'd) Approx Tenure & Year Lease Expires Area in sq ft Approx Age of Existing Bldg/Land Use (years) Net Book Value RM'000 No Location Malaysia (cont'd) 18. Johor Bahru.928 Vacant N/A – Land Leasehold/ 2044 374. Johor Bahru.354 28 3. Shipyard Warehouse.485 Staff Quarters 28 – Warehouse Leasehold/ 2009 4. Johor Darul Takzim 24. Johor Bahru. Johor Bahru. PTD 65616 Mukim Plentong. Bintulu Sarawak 19.093 Vacant N/A – 4 Storey Residential Flats Leasehold/ 2044 588. PTD 65619 Mukim Plentong. Johor Darul Takzim 22. PTD 22805 Mukim Plentong. Kaw.800 Vacant Land 6 1. Perindustrian Kidurong. Johor Bahru. Johor Darul Takzim Description Land Leasehold/ 2062 217. Johor Darul Takzim 23.048 Warehousing & Storage 0 385 . Johor Darul Takzim 25.058 20.174 Land Leasehold/ 2044 169. Terengganu Darul Iman 4 Storey Residential Flats Leasehold/ 2044 698. Johor Darul Takzim 21.
447. Suite 40. Westplein 6-7. Dockage Ltrg Support Operation 38 2. Kent Street Sydney Australia 29. Albert Square 37-39 Albert Road Melbourne 3004 Australia United States of America 30. Town Quay Wharf Barking Essex London Australia 28.251 Land & Office Owned 290.000 MISC Europe Office & MISAL Office 13 4.083 MISAN Head Office 28 1.305 Land & Building (including 15 basement carparks) Land & Building (including 2 basement carparks) Freehold 1.739 .749 Netherlands 31. Bayswater London W2 6AS 27.012 sq meters 371 sq meters Owner Occupied Owner Occupied 13 1. 305.442 Freehold 28 2.200 Owner's use 15 2.927 Office Building Leasehold/ 2990 10. Galveston. USA Description Tenure & Year Lease Expires Area in sq ft Approx Age of Existing Bldg/Land Use (years) Net Book Value RM'000 Apartment Leasehold/ 2073 1. The Collonades Porchester Square. 3016 BM Rotterdam. Holland Total Office Building Freehold 8. Texas.829 575.properties owned by MISC Berhad and its subsidaries 193 No Location United Kingdom 26.415 Workboats.
Chemical Tankers Containerships Above 5000 TEUs 3000 – 5000 TEUs 1000 – 3000 TEUs Below 1000 TEUs 2 3 8 8 21 13 207.640.316 3.385 68.771 .885 367.049 59.513 2.031 566.547 1.112.490 161.755.088 73.954 525.736.877 359.937.972 In-Chartered .902 248.682 90.810 1.409 333.049.928.203.770 In-Chartered .050 6.998 376.Containerships Others LPG Dry Bulk (Panamax) 3 1 4 10.866 193.812 538.420 53.595 456.322 155.483 46.972 49.174 119.044 1.877 31.335 1.216 71.432.591 1.Petroleum Tankers Chemical Tankers Melati Class Anggerik Class Semarak Class 7 4 2 13 3 224.list of vessels 194 List of Vessels 30 June 2007 List of Owned and In-Chartered Vessels by Type/Category LNG Carriers Aman Class Tenaga Class Puteri Class Puteri Satu Class Seri "A" Class Seri "B" Class Petroleum Tankers Crude Oil Tankers – VLCC Crude Oil Tankers – Aframax Long Range 2 (LR2) Product No DWT GRT 3 5 5 6 4 1 24 9 31 1 5 46 19 32.552 132.644 382.059 80.539 642.802 34.550 431.264 73.391 10.123 470.353 104.127 83.543 154.071 402.231 179.812 19.837 49.256 3.287.964 In-Chartered .799 38.916 105.065 1.
200 597.319.854.513.631 Newbuildings LNG Carriers Petroleum Tankers – VLCC Petroleum Tankers – Aframax Chemical Tankers Total Newbuildings No 5 2 8 8 23 DWT 375.555.200 GRT – – – – – Under Conversion FPSO* No 1 DWT 270.759 Offshore Floating Facilites Floating Production Storage and Offloading (FPSO) Floating Storage and Offloading (FSO) Total Offfshore Floating Facilites No 3 3 6 DWT 615.135.368.390 11.000 304.631 5.617.list of vessels 195 No Total MISC Vessel (Owned) Total In-Chartered Total MISC Vessel (Including In-Chartered) 108 35 143 DWT 8.652.000 2.768 244.053 1.000 1.341 GRT 6.790 860.062.558 bbls 4.971.000 859.706 7.951 2.000 bbls – * jointly owned .
list of vessels
List of Vessels
30 June 2007 (cont'd)
Aman Class 1. Aman Bintulu 2. Aman Sendai 3. Aman Hakata Built DWT GRT
1993 1997 1998
10,975 10,951 10,951 32,877
16,399 16,336 16,336 49,071
Tenaga Class 4. Tenaga Satu 5. Tenaga Dua 6. Tenaga Tiga 7. Tenaga Empat 8. Tenaga Lima
1982 1981 1981 1981 1981
71,814 72,087 72,083 71,818 72,083 359,885
80,510 80,510 80,510 80,510 80,510 402,550
Puteri Class 9. Puteri Intan 10. Puteri Delima 11. Puteri Nilam 12. Puteri Zamrud 13. Puteri Firus
1994 1995 1995 1996 1997
73,519 73,519 73,519 73,519 73,519 367,595
86,205 86,205 86,211 86,205 86,205 431,031
Puteri Satu Class 14. Puteri Intan Satu 15. Puteri Delima Satu 16. Puteri Nilam Satu 17. Puteri Zamrud Satu 18. Puteri Firus Satu 19. Puteri Mutiara Satu Seri A Class 20. 21. 22. 23 Seri Alam Seri Amanah Seri Anggun Seri Angkasa
2002 2002 2003 2004 2004 2005
75,849 75,929 76,124 76,144 76,124 76,239 456,409
94,430 94,430 94,446 94,446 94,446 94,446 566,644
2005 2006 2006 2007
83,482 83,400 83,396 83,404 333,682
95,729 95,729 95,729 95,729 382,916
Seri B Class 24. Seri Bakti Total LNG Carriers 2007 90,065 90,065 1,640,513 105,335 105,335 1,937,547
list of vessels
VLCC 1. Bunga Kasturi 2. Bunga Kasturi Dua 3. Bunga Kasturi Tiga 4. Bunga Kasturi Empat 5. Eagle Valencia 6. Eagle Venice 7. Eagle Vienna 8. Eagle Virginia 9. Eagle Vermont
2003 2005 2006 2007 2005 2005 2004 2002 2002
299,999 300,542 300,397 300,325 306,998 306,998 306,999 306,999 306,999 2,736,256
157,200 157,200 157,200 157,200 160,046 160,046 161,233 161,233 161,233 1,432,591
Aframax 10. Bunga Kelana Satu 11. Bunga Kelana Dua 12. Bunga Kelana 3 13. Bunga Kelana 4 14. Bunga Kelana 5 15. Bunga Kelana 6 16. Bunga Kelana 7 17. Bunga Kelana 8 18. Bunga Kelana 9 19. Bunga Kelana 10 20. Bunga Kenanga 21. Eagle Albany 22. Eagle Anaheim 23. Eagle Atlanta 24. Eagle Augusta 25. Eagle Austin 26. Eagle Baltimore 27. Eagle Beaumont 28. Eagle Birmingham 29. Eagle Boston 30. Eagle Charlotte 31. Eagle Columbus 32. Eagle Otome 33. Eagle Phoenix 34. Eagle Subaru 35. Eagle Tacoma 36. Eagle Toledo 37. Eagle Trenton 38. Eagle Tucson 39. Eagle Tampa 40. Quasar
1997 1997 1998 1999 1999 1999 2004 2004 2004 2004 2000 1998 1999 1999 1999 1998 1996 1996 1997 1996 1997 1997 1994 1998 1994 2002 2003 2003 2003 2003 1989
105,884 105,976 105,784 105,815 105,788 105,811 105,194 105,174 105,200 105,274 73,096 107,160 107,160 107,160 105,345 105,426 99,405 99,448 99,343 99,328 107,169 107,166 95,663 106,127 95,676 107,123 107,092 107,123 107,123 107,123 97,197 3,203,353
57,017 57,017 57,017 57,017 57,017 57,017 58,194 58,194 58,194 58,194 40,037 57,929 57,929 57,929 58,156 58,156 57,456 57,456 57,456 57,456 57,949 57,949 52,504 56,346 52,504 58,166 58,166 58,166 58,166 58,166 52,500 1,755,420
list of vessels
List of Vessels
30 June 2007 (cont'd)
LR2 40. Eagle Milwaukee Product 41. Bunga Kasai 42. Bunga Kerayong 43. Bunga Kekaras 44. Bunga Kemiri 45. Pernas Rantau Built DWT GRT
104,385 104,385 4,999 18,130 29,990 9,932 4,999 68,050 6,014,847
53,483 53,483 3,581 12,994 20,378 5,782 3,581 46,316 3,235,310
1994 1994 1995 1995 1994
Total Petroleum Tankers (Owned) In-Chartered VLCC 1. Camden Aframax 2. Eagle Auriga 3. Eagle Carina 4. Eagle Centaurus 5. Eagle Corona 6. Glenross 7. Lochness 8. Genmar Ajax 9. Sanko Brave 10. Sanko Bright 11. Stavanger Bay 12. CV Stealth 13. Sanko Blossom 14. CS Stealth 15. MT Intrepid Reliance 16. Eagle Stealth 17. Feng Huang Zhou Shuttle 18. Kazan City 19. Samara City
1995 1993 1992 1992 1993 1993 1994 1996 2003 2003 2003 2005 2005 2006 2006 2001 2006 1996 1993
298,306 102,352 95,639 95,644 95,634 90,679 90,607 96,183 105,672 105,745 105,744 104,499 105,699 104,592 104,403 105,322 110,485 5,760 5,872 1,928,837 8,040,881
156,802 55,962 52,504 52,504 52,504 53,135 53,135 53,829 56,172 56,172 56,172 58,148 56,172 58,446 56,573 56,346 56,573 4,408 4,407 1,049,964 4,377,774
Total Petroleum Tankers (Including In-Chartered)
list of vessels
Melati Class 1. Bunga Melati Satu 2. Bunga Melati Dua 3. Bunga Melati 3 4. Bunga Melati 4 5. Bunga Melati 5 6. Bunga Melati 6 7. Bunga Melati 7
1997 1997 1999 1999 1999 2000 2000
32,127 32,169 31,983 31,967 31,975 31,981 31,972 224,174
22,254 22,254 22,116 22,116 22,116 22,116 22,116 155,088
Anggerik Class 8. MT Varden (ex-Bunga Anggerik) 9. MT Skarven ( ex-Bunga Cenderawasih) 10. MT Stolzen (ex-Bunga Mawar) 11. MT Karven (ex-Bunga Tanjung)
1989 1990 1990 1991
29,995 29,928 29,974 29,980 119,877
18,453 18,453 18,453 18,453 73,812
Semarak Class 12. Bunga Semarak 13. Bunga Siantan
15,999 15,999 31,998 376,049
9,951 9,951 19,902 248,802
Total Chemical Tankers (Owned) In-Chartered 1. Bunga Kantan Satu 2. Bunga Kantan Dua 3. Bunga Kantan Tiga
2005 2005 2005
19,774 19,774 19,774 59,322 435,371
11,590 11,590 11,590 34,770 283,572
Total Chemical Tankers (Including In-Chartered)
582 39. Bunga Mas Lapan 18.318 48.612 71. Bunga Teratai Tiga 13. Bunga Seroja Satu 2.957 8. Bunga Mas 12 1997 1997 1997 1998 1998 1998 1998 1999 8.073 24.313 80.339 21. Bunga Pelangi Dua 4. Bunga Raya Dua 1995 1998 1998 65.215 17. Bunga Bidara 7.490 89.304 48.866 53.339 21.582 132.244 161. Bunga Teratai 11. Bunga Mas Enam 16.215 17.580 24.957 8.668 9.215 17.215 21.3000 TEUs 6.576 24. Bunga Seroja Dua Built DWT GRT 2006 2007 103. Bunga Mas 9 19.288 10. Bunga Terasek 10. Bunga Mas Lima 15.379 39.776 89. Bunga Mas 11 21.039 8. Bunga Teratai Empat 1990 1990 1991 1991 1998 1998 1998 1998 23.339 21.717 103.216 Below 1000 TEUs 14.380 9.773 207.518 23.991 8.665 12.612 8.552 3000 .812 538.957 9.957 8.059 17.543 1000 .123 Total Containership (Owned) . Bunga Mas Tujuh 17.250 12. Bunga Teratai Dua 12.339 154. Bunga Raya Satu 5.list of vessels 200 List of Vessels 30 June 2007 (cont'd) Containership Above 5000 TEUs 1.954 8. Bunga Kenari 9.325 10.561 193.776 179.380 8.539 642.613 24.554 24.584 23. Bunga Mas 10 20. Bunga Delima 8.5000 TEUs 3.
Northern Divinity 5.046 66. OOCL China 2.124 56.606 42.403 14.000 5.800 34. OOCL California 3.231 1.405 6.336 28.046 36.611 28. Sky Venus 13.168.150 26.095 Total Containership (Including In-Chartered) .765 67.193 49.625 67. Conti Singa 6.427 66.972 1. OOCL Britain 4.700 44.585 37.list of vessels 201 Containership In-Chartered 1.088 525. Marvel 10.874 33.351 9. MISC Merlion 12. Theodore Storm 9. Vin Pioneer Built DWT GRT 1996 1995 1996 1997 1996 2005 2005 2004 1994 2002 1990 1983 1998 67.297 6.009.625 44.185 67.500 17. Nordwelle 8.741 33.030 38. Sinotran Shanghai 7.875 470. Lucien GA 11.
000. Brasil* 3.000 615.052 10.920 244. Pernas Butane 2.000 4.631 590. Bunga Saga 9 Built DWT GRT 1991 1995 1995 2. Konsep Maju 3.127 73.700.000 1.000 590.771 1999 Total Others Offshore Floating Facilities Floating Production Storage and Offloading (FPSO) 1.list of vessels 202 List of Vessels 30 June 2007 (cont'd) Others LPG 1. Kikeh Floating Storage and Offloading (FSO) 4.999 3.000 273.558 619.768 64.000 1.920 89.950 89.631 2005 2006 2006 Storage * jointly owned .352 4.000 2. Bunga Kekwa Dry Bulk (Panamax) 4.000 472. Cendor 6.631 5. Abu Cluster Total Offshore Floating Facilities Year Converted DWT Capacity (bbls) 2003 2002 2007 87. Bunga Kertas 2.951 3.319.768 255.790 860.972 49.213 4.391 2.972 38.971.127 83.264 73.496 10.799 38. Angsi 5.652.
HN S2232 2. VLCC H079 Petroleum Tankers .500 107. HN1426 7. Hull 2222 4.000 304. HN2049 7.000 38.VLCC 1.000 38. HN1424 5.500 597.500 107.200 298.500 298.400 73.433. HN1423 4.600 73. HN2048 6. Hull 1591 2.200 * jointly owned . Hull 2221 3. HN2050 8. HN1458 Chemical Tankers 1.020. HN2044 2.list of vessels 203 Committed Newbuildings LNG Carriers 1. Espirito Santo* Total New Conversion Expected Completion DWT Capacity (bbls) 2008 270.000 38.Aframax 1.000 107. HN S2233 3.500 107.400 73.500 859.000 2.000 107. Hull 2224 Petroleum Tankers . HN2047 5.400 73. HN2045 3.500 107.000 38.000 107.020.400 375. HN2046 4.000 2.000 38. HN2051 Expected Delivery DWT GRT 2007 2007 2008 2008 2008 81. HN1425 6. HN1457 8.500 107.000 38. VLCC H078 2.000 270.700 – – – – – – – – – – – – – – – – – – – – – – – – – – – – 2007 2008 2007 2007 2009 2010 2010 2010 2011 2011 2007 2007 2007 2007 2009 2009 2009 2009 Total Newbuildings Under Conversion Floating Production Storage and Offloading (FPSO) 1.000 38. Hull 2223 5.000 38.200 2.
Jalan Pekeliling P. 098632 Tel : 65-6100-2288 Fax : 65-6345-1133 BLG-MILS Logistics Sdn Bhd c/o MISC Integrated Logistics Sdn Bhd Lot 88077 Jalan Perigi Nenas 7/1 Taman Perindustrian Pulau Indah.22 Jalan Sultan Ismail 50520 Kuala Lumpur Malaysia Tel : 603-2142-1211 Fax : 603-2145-2700 Malaysia Marine and Heavy Engineering Sdn Bhd PLO 3.O. 20. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Malaysia Tel : 603-2275-3255 Fax : 603-2275-3209 AET Shipmanagement (Singapore) Pte Ltd 1 HarbourFront Avenue #11-01.MISC offices around the world 204 MISC Offices Around the World MISC Head Office Level 25. Street 17 Al Amarat. No. USA Tel : 1-832-615-2000 Fax : 1-713-622-2256 AET Shipmanagement (Malaysia) Sdn Bhd Level 11.03. 42907 Pelabuhan Klang Selangor Darul Ehsan Malaysia Tel : 603-3161-2400 (Hunting Line) Fax : 603-3161-2500 FPSO Ventures Sdn Bhd Suite 2.com.misc. Box 31 Kuala Sungai Baru 78207 Melaka Malaysia Tel : 606-387-6201 Fax : 606-387-6700 MILS-Seafrigo Sdn Bhd c/o MISC Integrated Logistics Sdn Bhd Lot 88077 Jalan Perigi Nenas 7/1 Taman Perindustrian Pulau Indah. Leboh Sultan Mohamed 1. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur or PO Box: 10371 50712 Kuala Lumpur Malaysia Tel : 603-2273-8088 Fax : 603-2273-6602 http://www. No. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Malaysia Tel : 603-2275-3402 Fax : 603-2275-2953 Malaysia Deepwater Production Contractors Sdn Bhd Suite 2. 42009 Pelabuhan Klang Selangor Darul Ehsan Malaysia Tel : 603-3176-5753 Fax : 603-3176-6289 AET Offshore Services Inc 1301 Pelican Island-2 Galveston. Box 77 81700 Pasir Gudang Johor. Box 146. 42907 Pelabuhan Klang Selangor Darul Ehsan Malaysia Tel : 603-3161-2400 (Hunting Line) Fax : 603-3161-2500 MISC Agencies Sdn Bhd (Port Klang) Lot 23. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Malaysia Tel : 603-2267-4800 Fax : 603-2273-0608 AET Tankers Pte Ltd 1 HarbourFront Avenue #11-01. 2nd Floor Menara SPK. Keppel Bay Tower Singapore 098632 Tel : 65-6100-2288 Fax : 65-6345-1133 AET UK Limited Suite 8.my Asia LNG Transport Sdn Bhd Asia LNG Transport Dua Sdn Bhd Level 28. 2nd Floor Menara SPK. 9GE United Kingdom Tel : 44-20-7536-5880 Fax : 44-20-7538-5561 . Exchange Tower 1 Harbour Exchange Square London E14. Keppel Bay Tower Singapore. Malaysia Tel : 607-251-2111 Fax : 607-251-3997 Malaysia Maritime Academy Sdn Bhd P. Sudan Tel : 249-183-574-550/51 Fax : 249-183-561-717 Malaysia Deepwater Floating Terminal (Kikeh) Ltd Level 28. Khartoum. 22 Jalan Sultan Ismail 50250 Kuala Lumpur Malaysia Tel : 603-2145-2600 Fax : 603-2145-2700 KEER – MISC Logistics Co Ltd No.O. Texas 77554. 42907 Pelabuhan Klang Selangor Darul Ehsan Malaysia Tel : 603-3161-2400 (Hunting Line) Fax : 603-3161-2500 MILS-SterilGamma Sdn Bhd c/o MISC Integrated Logistics Sdn Bhd Lot 88077 Jalan Perigi Nenas 7/1 Taman Perindustrian Pulau Indah. Kawasan Perusahaan PKNS Fasa 2 Bandar Sultan Suleiman Pelabuhan Utara P.03.02.O.
Barking Essex IG11 7 AT. United Kingdom Tel : 44-20-8591-3232 Fax : 44-20-8507-1624 MISC Integrated Logistics Sdn Bhd Lot 88077 Jalan Perigi Nenas 7/1 Taman Perindustrian Pulau Indah. 126 Garagum Bank Building. Shinigawa-ku Tokyo 141-00. 5050. Bintulu Parkcity Commercial Centre Bintulu. Box 795. U. 29-1 Nishigotanda I-Chrome. Malaysia Tel : 607-251-2111 Fax : 607-251-3997 MMHE-ATB Sdn Bhd c/o Malaysia Marine and Heavy Engineering Sdn Bhd PLO 3. Dubai Airport Free Zone P.O. 3016 BM Rotterdam. 4th Floor 3656/9-10. Jalan Bagan Luar. 88000 Kota Kinabalu. Upper Floor Jalan Gebeng 2/6 Gebeng Industrial Estate 26080 Kuantan Pahang Darul Makmur Malaysia Tel : 609-5833-557 Fax : 609-5833-550 MISC Agencies Sdn Bhd (Sabah) Ground Floor. Rama 4 Road Klong Toey. Level 14 NB Tower 2.MISC offices around the world 205 MISC Agencies Sdn Bhd (Johor) 1st Floor. Netherlands Tel : 31-10-209-2222 Fax : 31-10-209-2299 MISC Agencies (Sarawak) Sdn Bhd No. 31. W40B. 12000 Butterworth Penang Malaysia Tel : 604-3236-969 Fax : 604-3329-608 MISC Agencies Sdn Bhd (Pahang) No B4. Nawam Mawatha P. Valiant Towers 46/7. Pamunugama Road Tudella. Complex MISC PLO 137 & 138 Jalan Angkasa Mas Utama Kawasan Perindustrian Tebrau II 81100 Johor Bahru Johor. Albert Square 37-39 Albert Road Melbourne.O Box 77 81700 Pasir Gudang Johor.E. 97012 Sarawak Malaysia Tel : 0686-318-311/312/313 Fax : 0686-311-326 MISC Agencies (Singapore) Pte Ltd 1 HarbourFront Avenue #11-05/09. 1st Floor. Keppel Bay Tower Singapore 098632 Tel : 65-6220-1522 Fax : 65-6271-0817 MISC Agencies (Thailand) Co Ltd Green Tower. Malaysia Tel : 607-251-2111 Fax : 607-251-3999 MMHE-Turkmenistan Ashgabat Office Level 6. Wisma Takada Jalan Gaya. 42907 Pelabuhan Klang Selangor Darul Ehsan Malaysia Tel : 603-3161-2400 (Hunting Line) Fax : 603-3161-2500 MISC LNG Liason Office – Japan Nisseki Yokohama Building 1-1-8 Sakuragi-cho Nakaku 231-0062. Tel : 9714-299-4476 Fax : 9714-299-4432 Transware Distribution Services Pte Ltd 9 Gul Circle Singapore 629565 Tel : 65-6861-1757 Fax : 65-6862-5639 Trans-ware Logistics (Pvt) Ltd 150. 150/1. Japan Tel : 81-3-5496-2361 Fax : 81-3-5496-2320 MISC Agencies Lanka (Pvt) Ltd Level 7. 1.Box 7 Dubai. Jalan Pekeliling P. Jalan Pekeliling P. Victoria 3004 Australia Tel : 61-3-9862-6200 Fax : 61-3-9867-6167 MISC Agencies (Japan) Ltd Koizumi Building 5th Floor. Sabah Malaysia Tel : 088-212-070 Fax : 088-234-445/ 088-269-880 MISC Agencies (Australia) Pty Ltd Suite 40.O. Ashgabat 744000 Turkmenistan Tel : 607-251-2111 Fax : 607-251-3999 PETRONAS Tankers Sdn Bhd Level 28. Ja-Ela Sri Lanka Tel : 94-1-232-577 Fax : 94-1-232-588 . Malaysia Tel : 607-3513-684 Fax : 607-3513-695/696 MISC Agencies Sdn Bhd (Penang) Suite No 5. Colombo 2 Sri Lanka Tel : 94-11-234-8933-8 (6 lines) Fax : 94-11-234-8931/2 MISC Agencies (Netherlands) BV Westplein 6-7.A. Bangkok 10110 Thailand Tel : 66-2-367-3558/3581 Fax : 66-2-367-3586/3587 MISC Agencies (UK) Ltd Quayside House 13 Town Quay Wharf Abbey Road. Japan Tel : 81-45-680-2280 Fax : 81-45-680-2284 MMHE-SHI LNG Sdn Bhd c/o Malaysia Marine and Heavy Engineering Sdn Bhd PLO 3. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Malaysia Tel : 603-2275-2465 Fax : 603-2275-3229 RAIS – MILS Logistics FZCO Plot No. Turkmenbashy Shayoly.O Box 77 81700 Pasir Gudang Johor.
Nikko Hotel Kuala Lumpur. Level 2. To approve the payment of Directors' fees for the financial year ended 31 March 2007. To declare a final dividend of 20 sen per share (Malaysian Income Tax exempted) in respect of the financial year ended 31 March 2007. 3.00 am at Ballroom 1. 1965 be and is hereby re-appointed as Director of the Company to hold office until the conclusion of the next Annual General Meeting of the Company." . To re-elect Dato' Dr.notice of annual general meeting 206 Notice of Annual General Meeting NOTICE IS HEREBY GIVEN that the Thirty-Eighth (38th) Annual General Meeting of Members of MISC Berhad will be held on 16 August 2007 at 11. 4. 7. to pass the following resolutions: a) Section 129(2) and (6) of the Companies Act. Wan Abdul Aziz bin Wan Abdullah who retires in accordance with Article 95 of the Articles of Association of the Company and being eligible offer himself for re-election. To receive and adopt the audited financial statements for the financial year ended 31 March 2007 and the Reports of the Directors and Auditors thereon. 2. As Special Business To consider and if thought fit. To re-elect the following Directors who retire by rotation in accordance with Article 97 of the Articles of Association of the Company and being eligible offer themselves for re-election: Dato' Shamsul Azhar bin Abbas Datuk Nasarudin bin Md Idris Dato' Kalsom binti Abd Rahman 5. 1965 "That Dato Sri Liang Kim Bang. To re-appoint Messrs Ernst & Young as auditors of the Company and to authorise the Directors to fix their remuneration. Jalan Ampang 50450 Kuala Lumpur for the following purposes: As Ordinary Business 1. a Director who retires pursuant to Section 129(2) of the Companies Act. 165. 6.
on a poll. . Notice of Dividend Entitlement and Payment Notice is hereby given that subject to the approval of Members at the Annual General Meeting on 16 August 2007. The form of proxy must be deposited at the Registrar of the Company. as Director of the Company persuant to Section 129(6) of the Companies Act. by proxy. and ii. 8 Jalan Munshi Abdullah. b) Proposed Amendments to the Articles of Association of the Company The proposed resolution is to amend the Articles of Association of the Company to be in line with the recent amendments of the Listing Requirements of Bursa Malaysia Securities Berhad. where proxies are allowed. To transact any other ordinary business of which due notice has been given. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and. Explanatory Notes on Special Business a) Section 129(6) of the Companies Act. 2. 1965 shall take effect if the proposed Resolution has been passed by a majority of not less than three-fourths (3/4) of such members as being entitled to vote in person or. the proxy appointed must be in accordance with its Memorandum and Articles of Association and the instrument appointing a proxy shall be given under the Company's Common Seal or under the hand of an officer or attorney duly authorised. at a general meeting of which not less than 21 days' notice specifying the intention to propose the resolution as special resolution has been duly given.00 p. No. shares bought on Bursa Malaysia on a cum entitlement basis according to the Rules of Bursa Malaysia. 4. Menara Multi Purpose. a final dividend of 20 sen per share (Malaysian Income Tax exempted) in respect of the financial year ended 31 March 2007 will be paid on 30 August 2007 to Depositors whose names appear in the Record of Depositors on 17 August 2007. Symphony Share Registrars Sdn Bhd (378993-D) at Level 26. to vote in his stead. 1965 The re-appointment of Dato Sri Liang Kim Bang.m. on 17 August 2007 in respect of ordinary transfers. In the case of a Corporate Body. Capital Square. 3. Malaysia not less than 48 hours before the time appointed for holding the Meeting. 50100 Kuala Lumpur. By Order of the Board Fina Norhizah binti Baharu Zaman Company Secretary (LS 01571) Kuala Lumpur Date: 25 July 2007 NOTES Proxy 1. A proxy may but need not be a member of the Company and a member may appoint any person to be his proxy without limitation and the provisions of Section 149(1)(b) of the Companies Act. A depositor shall qualify for entitlement to the dividend only in respect of: i. 1965 shall not apply to the Company. shares transferred into the Depositor's securities account before 4.notice of annual general meeting 207 b) Proposed Amendments to the Articles of Association of the Company "That the proposed amendments to the Articles of Association of the Company as contained in Appendix I of the Annual Report be and are hereby approved" 8.
Where: a) The securities of a company are listed on an Approved Market Place. under the Rules of the Central Depository in respect of such . The Company shall not. unless with the consent of existing preference shareholders at a class meeting. The Company shall not. as the case may be. Deleted Article 6A (a) – Shares Subject to the Act. issue preference shares ranking in priority to the preference shares already issued but may issued preference shares ranking equally therewith. the Preference Shareholder shall be entitled to repayment of the capital paid up on the preference share in priority to any repayment of capital to any other member. the Company shall have the power to issue preference shares on such terms and conditions and carrying such rights or restrictions provided that the total nominal of the issued preference shares shall not exceed the total nominal value of the issued ordinary shares at any time. Transmission of Securities from Foreign Register Article 44A 1. Deleted Article 3B (3) – Shares 3. In a distribution of capital in a winding up of the Company. the provision of these Articles and the Requirements of the Exchange. under the Rules of the Central Depository in respect of Where: a) The securities of a company are listed on another stock exchange. The preference share shall confer no other right to participate in the capital or profits of the Company.notice of annual general meeting 208 Notice of Annual General Meeting (cont'd) Appendix I Proposed Amendments to The Articles of Association Article No. 2) Order 1998. Subject to the Act. and b) Such company is exempted from compliance with section 14 of the Central Depositories Act or section 29 of the Securities Industry (Central Depositories) (Amendment) Act 1998. Existing Article Amended Article Interpretation "Approved Market Place" means a stock exchange which is specified to be an approved market place in the Securities Industry (Central Depositories) (Exemption) (No. the provision of these Articles and the Requirements of the Exchange. as the case may be. unless with the consent of existing preference shareholders at a class meeting. the Company shall have the power to issue preference shares on such terms and conditions and carrying such rights or restrictions. and b) Such company is exempted from compliance with section 14 of the Central Depositories Act or section 29 of the Securities Industry (Central Depositories) (Amendment) Act 1998. issue preference shares ranking in priority to the preference shares already issued but may issued preference shares ranking equally therewith.
upon request of a securities holder. upon request of a securities holder. Deleted Article 58A(b) – General Meeting b) The Company shall also request the Central Depository in accordance with the Rules. to issue a Record of Depositors. Existing Article Amended Article such securities. as at the latest date which is reasonably practicable which shall in any event be not less than 3 Market Days before the general meeting (hereinafter referred to as "the General Meeting Record of Depositors"). such company shall. Article 80A – Directors All the Directors of the company shall be natural persons. permit a transmission of securities held by such securities holder form the register of holders maintained by the registrar of the company in the jurisdiction of the other stock exchange to the register of holders maintained by the registrar of the company in the jurisdiction of the other stock exchange to the register of holders maintained by the registrar of the company in Malaysia and vice versa provided that there shall be no change in the ownership of such securities. to issue a Record of Depositors. a holder of ordinary shares or preference shares who is personally present and entitled to vote shall be entitled to 1 vote. For the avoidance of doubt. securities.notice of annual general meeting 209 Article No. no company which fulfils the requirements of subparagraphs (1)(a) and (b) above shall allow any transmission of securities from the Malaysian register into the Foreign Register. 2. Deleted . b) The Company shall also request the Central Depository in accordance with the Rules. as at a date not less than 3 Market Days before the general meeting (hereinafter referred to "the General Meeting Record of Depositors"). permit a transmission of securities held by such securities holder form the register of holders maintained by the registrar of the company in the jurisdiction of the Approved Market Place (hereinafter referred to as "the Foreign Register") to the register of holders maintained by the registrar of the company in Malaysia (hereinafter referred to as "the Malaysia Register") provided that there shall be no change in the ownership of such securities. New Provision – Article 73B On a resolution to be decided on a show of hands. such company shall.
Details of Directors' Fees for the Financial Year ended 31 March 2007 are as follows: Annual Fees Tan Sri Dato Sri Mohd Hassan bin Marican Dato Sri Liang Kim Bang Harry K Menon Dato' Halipah binti Esa Datuk Nasarudin bin Md Idris Dato' Kalsom binti Abdul Rahman Dato' Dr. 3.600 9.477 27.800 48.800 2. None of the Company's Directors hold any interests in the Company's subsidiaries. The profiles of the Directors who are standing for re-election as in Agenda 3 of the Notice of Annual General Meeting are set out on pages 024 to 027 of this Annual Report.statement accompanying notice of annual general meeting 210 Statement Accompanying Notice of Annual General Meeting Pursuant To Paragraph 8.500 19.000 Board Attendance Fees 2.677 800 – – 20.800 2.f 14 September 2006) Tan Sri Dato' Seri Dr Hj Zainul Ariff bin Hj Hussain (resigned w.800 48.000 36.000 36.100 BAC Attendance Fees – 1.600 1.400 2. Wan Abdul Aziz bin Wan Abdullah (appointed w.400 . The details of the Directors' securities holdings in the Company are set out in page 100 of this Annual Report.f 1 January 2007) 60.000 800 38.000 36.800 48.600 1.000 36.400 8.e.28(2) of the Listing Requirements of the Bursa Malaysia Securities Berhad 1.200 – 400 Total 62.000 1.400 40. 2.800 2.400 9.300 – 2.500 38.000 BAC Annual Fees – 8.e.000 2.000 36.
. 1965. of shares held Signed this day of 2007 Signature/Common Seal of Appointor Note: 1. on the following resolutions referred to in the notice of Annual General Meeting: Ordinary Resolution 1 To receive and adopt the audited financial statements for the financial year ended 31 March 2007 and the Reports of the Directors and Auditors thereon. Malaysia. In the case of a Corporate Body. No. 3. Level 2. Jalan Ampang 50450 Kuala Lumpur on 16 August 2007 at 11. 2. A proxy may but need not be a member of the Company and a member may appoint any person to be his proxy without limitation and the provisions of Section 149(1)(b) of the Companies Act. and at any adjournment thereof. 8 Jalan Munshi Abdullah. Symphony Share Registrars Sdn Bhd (378993-D) at Level 26.m. Menara Multi Purpose. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and. 3 To re-elect Dato’ Dr.form of proxy MISC Berhad Form of Proxy I/We of being a member/members of the abovenamed Company. Wan Abdul Aziz bin Wan Abdullah who retires in accordance with Article 95 of the Articles of Association of the Company and being eligible offer himself for re-election. 4 To re-elect the following directors who retire by rotation in accordance with Article 97 of the Articles of Association of the Company and being eligible offer themselves for re-election: • Dato’ Shamsul Azhar bin Abbas • Datuk Nasarudin bin Md Idris • Dato’ Kalsom binti Abd Rahman 5 To approve the payment of Directors’ Fees for the financial year ended 31 March 2007. to vote instead of him. For Against Special Resolution 7 To re-appoint Dato Sri Liang Kim Bang as Director of the Company. No. 2 To declare a final dividend of 20 sen per share (tax exempt) in respect of the financial year ended 31 March 2007. 165. Nikko Hotel Kuala Lumpur. and the instrument appointing a proxy shall be given under the Company's Common Seal or under the hand of an officer or attorney duly authorised. on a poll.00 a. 8 To approve the Proposed Amendments to the Articles of Association of the Company. the Proxy appointed must be in accordance with its Memorandum and Articles of Association. 1965 shall not apply to the Company. not less than forty-eight hours before the time appointed for holding the Meeting. 6 To re-appoint Messrs Ernst & Young as auditors of the Company and to authorise the Directors to fix their remuneration. Capital Square. hereby appoint and/or of and failing the abovenamed proxies. 50100 Kuala Lumpur. who retires pursuant to Section 129(2) of the Companies Act. This form of proxy must be deposited at the Registrar of the Company. the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the ThirtyEighth Annual General Meeting of the Company to be held at Ballroom 1. Unless voting instructions are indicated in the spaces above the proxy will vote as he thinks fit.
Stamp Symphony Share Registrars Sdn Bhd Level 26. Menara Multi Purpose Capital Square No 8. Jalan Munshi Abdullah 50100 Kuala Lumpur .
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