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In Dedication FINANCIAL HIGHLIGHTS Current Year Financial Highlights Five-Year Group Financial Statistics Financial Calendar Analysis Of Shareholdings Share Performance CORPORATE PROFILE MISC... At A Glance MISC Fleet Strength Countries & Ports Of Call 2003/2004 MISC Group Structure Corporate Information PEOPLE Board Of Directors Profile Of Directors Management Committee Profile Of Management Committee CORPORATE TRANSPARENCY Our Corporate Governance Statement Statement On Internal Control Board Audit Committee Terms Of Reference Of Board Audit Committee THE YEAR IN REVIEW Chairman’s Statement Operation’s Review Financial Year 2003/2004 Health, Safety, Security, And Environment (HSSE) Report Corporate Highlights Of The Year Corporate Social Responsibility Staff Development & Welfare: Sustaining An Integrated Workforce Employees Activities For The Year FINANCIAL Financial Statements List Of Vessels Properties Owned By MISC Bhd And Its Subsidiaries CORPORATE DIRECTORY MISC Group Of Companies ANNUAL GENERAL MEETING Notice Of Annual General Meeting Statement Accompanying Notice Of Annual General Meeting Proxy Form
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MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Dato’ Hj. Mohd Ali bin Hj.Yasin
(Managing DIrector/Chief Executive Officer of Malaysia International Shipping Corporation)
moral sense of integrity and strong discipline to guide us as we move forward to even greater heights. we will forever remember his unwavering courage of conviction. ” . As we mourn his loss.A man whose and to “work ethicsleadership qualitiesa sensededicationand have instilled in us all of purpose direction.
0 30.417.4 1500 1.310.0 20.6 sen or 74.6 2.6 1.9 1.0 1.0 0 0 04 20 03 20 02 20 01 20 + 00 20 +Based on annualised 15 months figures Profitability G The significant increase in profit before taxation of 77.6 1.728.0 30. G Dividend per share as reflected in the financial statements remained at 30 sen per share for the current year.4 1. G Management is proposing a final dividend of 15 sen and a 10 sen special dividend at the forthcoming AGM bringing total dividend for FY2003/2004 to 40 sen per share. LNG and Chemical business units.5% was attributable to the contribution from American Eagle Tankers Inc.289.6% to 123.310.326.1 1. comprising 15 sen final dividend for FY2002/2003 and interim dividend of 15 sen for FY2003/2004.4 Current Year Financial Highlights PROFTABILITY RM Million 2500 2.389. Limited ("AET") and the upsurge in freight rates and shipping volume in the shipping businesses. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) 04 20 03 20 02 20 01 20 + 00 20 Profit Before Taxation Net Pofit For The Year Earnings Per Share Dividends Per Share +Based on annualised 15 months figures Earnings Per Share G Earnings per share increased by 52. .5 1000 60 500 30 26. G Petroleum showed the biggest improvement in profit before taxation followed by Liner.0 30.7 72.4 EARNINGS & DIVIDENDS Sen Per Share 150 2000 120 123.343.415.3 90 90.3 70.1 sen per share.7 1. Bulk.3 74.685.
348.726.025. these total inflows were reduced by the significant cash outflow for investing activities amounting to RM4.0% resulting from additional earnings retained for the financial year. Total vessels owned as at 30 June 2004 have also increased to 138 from 126 in the prior year. Furthermore.0 billion was contributed by the acquisition of AET and increased stake in MSE Holdings Sdn.5 22.2 0.2 0 0 04 20 03 20 02 20 01 20 + 00 20 02 20 Total Assets Ship.82 11.0 times.351.029.8% of which RM6.3 0.117.355. Petroleum and the Floating. The payments comprise mainly of progress payments for LNG.853. G Shareholders' funds increased by 18.8 0. deposits and bank balances increased by 80% or RM824. Deposits and Bank Balances Shareholders’ Funds Balance sheet G Total assets increased by 51.6 1.3 11.8 0.5 1.82 from 0. However.98 0.1 9.130.1 15000 14.618.8 14.0 14. the ratio remains significantly lower than the industry norm of 2. Financing activities registered a net inflow which resulted from the drawdown of the bridging loan facility + 00 20 01 20 04 20 and the additional Japan Bank for International Cooperation ("JBIC") loan drawdown on top of repayments of the Group's current loan obligations.368 million for capital expenditure as described below and the acquisition of AET during the year.73 0.877.52 0.6 0.70 20000 1.621.8% increase in expenditure relative to last year.66 11.44 due to the bridging loan used to fund the AET acquisition as well as the consolidation of AET's existing loans. Nevertheless. G 03 20 Total Debt/Equity Net Debt/Equity Debt/Equity ratio Debt/Equity ratio increased to 0.7 12.861.33 7. Bhd.3 14. group ("MSE").750 million.112.0 0.1 0. Properties & Equipment Cash.2 0.6 million.1 1. The increase were mainly due to the net cash generated from operations of RM2.46 10000 0.5 5000 0. Storage & Offloading (FPSO) project as well as MISC's LNG Tenaga vessels refurbishment project.5 BALANCE SHEET RM Million 25000 17.659.564.796.5 DEBT/EQUITY RATIO Ratio 1. G Cash.44 0.446 million and net cash from financing activities of RM2.4 11.916. Production. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Capital expenditure continued its northward march as the Group maintains its investment pace registering a 36.33 8.8 1.8 6. the Group increased its drawdown of the JBIC loan to finance the new LNG vessels construction.601.378.
9 11.752.4 2.0 31.9 8.44 14.3.3 31.433.4 0.343.612.861.5 10.545.9 15.6 29.3 5.032.2002 RM Million 5.3.348.9 6.4 11.9 9.310.2004 RM Million Revenue Profit before taxation Net profit for the year Taxation Dividends Earnings per share (sen) Return on assets (%) Return on shareholders' funds (%) Profit before taxation as % of revenue Net profit for the year 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 7.9 6.4 1.606.2 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .728.3 11.912.3 14.5 13.3 2.3.2 453.1 14.289.564.250.356.685.2 327.8 1.6 31.1 558.5 10.1 24.5 21.601.6 30.2003 RM Million 5.796.0 72.5 773.7 24.415.0 27.6 90.355.2001 RM Million 5.310.508.618.859.6 15.0 74.70 7.1 14.2 184.108.40.206 967.1 1.386.6 21.2 5.0 496.82 17.3 2.859.4 1.52 10.3 6.859.4 483.98 6.859.2 558.1 7.5 9.417.9 557.7 13.3 1.7 (3.2 20.4 1.5 667.6 7.3 1.0 26.710.5 1.479.351.9 7.5 14.326.2 30.2000 RM Million 5.9 372.378.6 28.7 1.389.9 0.9 4.3 394.7 1.6 1.0 1.6 4.471.734.726.4 1.2 14.0 0.6 0.1 1.859.9 16.6 Five-Year Group Financial Statistics Annualised 31.8 22.3.0 123.0 31.1 5.0 27.6 24.0 70.846.5) 558.8 0.
800 1.0 6.4 496.6 21.000 480 483.500 2.600 500 120 0 0 0 04 20 3 0 20 02 20 1 0 20 + 20 04 20 3 0 20 02 20 1 0 20 + 20 CAPITAL EXPENDITURE RM Million 3.389.0 558.9 00 00 INTEREST COVER RATIO No.0 967.3 557. of times 00 773.4 360 1.000 120 0 0 04 20 3 0 20 02 20 1 0 20 + 04 20 3 0 20 02 20 1 0 20 + 20 20 04 20 3 0 20 02 20 1 0 20 + 20 00 00 00 RETURN ON ASSETS Percent RETURN ON SHAREHOLDERS’ FUNDS Percent 20 20 28.6 8 7.000 20 2.545.7 REVENUE RM Million 8.0 20.479.8 6.3 TOTAL BORROWINGS RM Million NET TANGIBLE ASSETS PER SHARE Sen 600 9.9 15.800 1.000 8.0 6.310.6 5.5 327.250.0 17.606.4 1.000 2.612.2 22.500 1.846.0 6.000 360 5.5 13.9 1.912.5 13.343.0 5.685.6 16 14.200 600 0 04 20 3 0 20 02 20 1 0 20 + 10.000 240 1.2 8 11.7 2.200 1.2 372.3 NET PROFIT FOR THE YEAR RM Million 2.8 11.433.508.9 480 453.2 4 4 5.4 21.000 240 4.0 4.7 5.0 12 16.6 0 0 0 04 20 3 0 20 02 20 1 0 20 + 00 20 + Based on annualised 15 months figures 04 20 3 0 20 02 20 1 0 20 + 00 04 20 3 0 20 02 20 1 0 20 + 00 20 20 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .2 12 10.471.400 5.5 1.0 3.244.000 7.3 16 15.6 DIVIDENDS RM Million 600 558.6 394.0 558.6 14.356.2 10.2 4.289.400 1.4 667.7 2.2 4.
8 Financial Calendar 2003 Activity Name Financial Year Announcement Of Results & Dividends Quarter 1 Results Quarter 2 Results Quarter 3 Results Quarter 4 Results Interim Dividend (Announced/Paid) Final Dividend (Announced/Payable) Annual Report (Issued) Annual General Meeting Apr 1 May June July Aug Sept Oct Nov Dec 26 12 12 30 Announcement of Results & Dividends Annual General Meeting Annual Report (Issued) MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
9 2004 Jan Feb Mar 31 Financial Year Apr May June July Aug Announcement of Results & Dividends 1 April 2003 – 31 March 2004 Results Quarter 1 Announced 26 August 2003 25 24 Quarter 2 Announced Quarter 3 Announced Quarter 4 25 February 2004 12 November 2003 24 21 30 Announced 24 May 2004 Dividends 12 Interim Announced Paid 12 November 2003 30 December 2003 Final Annual Report Annual General Meeting Issued 21 July 2004 12 August 2004 Announced Payable 24 May 2004 30 August 2004 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
779 838 491 2 6.03 100. 15.900 3.915 10. 3.29 100.000 6.313.33 0. for Emerging Markets Investors Fund) MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .34 0.327 1.600 3. N.67 1. 14.063 29.000 5.82 2.991.A.16 84.900 6.000.5.000.256.51 44.001 – 10.16 0.56 1.27 0. Amanah Raya Nominees (Tempatan) Sdn Bhd (Amanah Saham Wawasan 2020) 10.800 7.51 68. 12. for Commonwealth of Massachusetts Pension Reserve Investment Trust) Amanah Raya Nominees (Tempatan) Sdn Bhd (Sekim Amanah Saham Nasional) Citicorp Nominees (Asing) Sdn Bhd (Ing Insurance Berhad (INV – IL PAR) HSBC Nominees (Asing) Sdn Bhd (General Motors Employees Global Group Pension Trust) Citicorp Nominees (Asing) Sdn Bhd (Mellon Bank. 17.800 6.161.47 0.395.256.29 1.819.737.22 0.A.200 4.839 2.19 0.232 % of Shareholders 4. 24. 4.970.224.000.44 5.44% (Petroliam Nasional Berhad) Employees Provident Fund Board .028.600 1.904.000 1.29 % Size of Shareholdings Less than 100 100 – 1. 27.48 0.300 10.793 % of Issued Share Capital 0.653.000 3.666. 22.18 0.00 0.913.18 0.33 0.43 0.32 0.59 13.161.65 1.443 1.19 0.400 3.327 % of Issued Share Capital 62.970.00 No.72 1.681.07 0. N.10 MISC SUBSTANTIAL SHAREHOLDERS as at 30 June 2004 Analysis Of Shareholdings As At 30 June 2004 RHB Nominees (Tempatan) Sdn Bhd .738 1.669. RHB Nominees (Tempatan) Sdn Bhd (Petroliam Nasional Berhad) No.500 31.62.001 to less than 5% of issued shares 5% and above of issued shares No. 13.000 4.076.460 108. 5.436. Valuecap Sdn Bhd 9.353. 29.957. Employees Provident Fund Board Lembaga Kemajuan Tanah Persekutuan (FELDA) Perbadanan Pembangunan Pulau Pinang Amanah Raya Nominees (Tempatan) Sdn Bhd (Skim Amanah Saham Bumiputera) (Security Trustee (KCW Issue 1) 6.367. Cimsec Nominees (Tempatan) Sdn Bhd 7.268.54 29.900 3.45 7.88 0.859.02 0. 28.989.44 5. 20.007 6. 11.001 – 100. of Shareholders 283 1.000.667 18.531. 26.918.16 0.) HSBC Nominees (Asing) Sdn Bhd (Abu Dhabi Investment Authority) Lembaga Tabung Haji Permodalan Nasional Berhad Cartaban Nominees (Asing) Sdn Bhd (Government of Singapore Investment Corporation Pte Ltd for Government of Singapore) Amanah Raya Nominees (Tempatan) Sdn Bhd (Amanah Saham Didik) HSBC Nominees (Asing) Sdn Bhd (Saudi Arabian Monetary Agency) HSBC Nominees (Asing) Sdn Bhd (Pictet And CIE for VKF Investment Ltd) Citicorp Nominees (Asing) Sdn Bhd (CB LDN for Stitching Pensioenfonds Voor De Gezondheid Geestelijken Maatschappelijke Belangen) Citicorp Nominees (Asing) Sdn Bhd (CBHK for Kuwait Investment Authority) HSBC Nominees (Asing) Sdn Bhd (RTCC London for Sprucegrove International Pooled Fund) Amanah Raya Nominees (Tempatan) Sdn Bhd (Amanah Saham Malaysia) Citicorp Nominees (Asing) Sdn Bhd (Mellon Bank. 18.500.422 32.800 4. Shares 6.769.86% Total : 68.000 8.227. RHB Nominees (Tempatan) Sdn Bhd (Petroliam Nasional Berhad) No. 2.270.460 108.000 4.577. of Shares Held 1.000 30.29 Employees Provident Fund Board Thirty (30) Largest Shareholders Name 1.86 68.25 0.26 0. 19.725.240.950.227.000 10.300 4.57 29. 16. 21. 23. State Financial Secretary Sarawak 8. 30.270.29 0.000 31.307 548. 25.26 0.000 100. of Shares Held 1.42 0.00 Substantial Shareholders Nama 1.56 0.523 % of Issued Share Capital 62.402.000 3.72 1.039.204.000 2.867 1.000 7.867 42.100 9.86 2. Citicorp Nominees (Asing) Sdn Bhd (MLPFS for Grantham Resources Ltd) Kerajaan Negeri Pahang HSBC Nominees (Asing) Sdn Bhd (BBH And Co Boston for GMO Emerging Markets Fund) ECM Libra Securities Nominees (Tempatan) Sdn Bhd (PETRONAS Retirement Benefit Scheme) HSBC Nominees (Asing) Sdn Bhd (Stitching Pensionenfonds ABP.
Bhd.000 9 10.000.000. Bhd.000 MISC FOREIGN SHARES 31 May 2004 29 Aug 2003 30 Apr 2003 30 Apr 2004 0 0 RM 15 40.000.000 6 5.000 12 30. American Eagle Tankers Announcement of 1st Quarter Results Announcement of 2nd Quarter Results Announcement of 3rd Quarter Results Acquisition of MSE Holdings Sdn.000.11 Share Performance Volume (shares) (Monthly 01/04/2003 to 31/05/2004) 25.000 3 30 Sep 2003 28 Nov 2003 31 Dec 2003 27 Feb 2004 30 Jun 2003 31 Jul 2003 31 Oct 2003 30 Jan 2004 30 May 2003 31 Mar 2004 Volume (shares) (Monthly 01/04/2003 to 31/05/2004) 50.000.000 9 20.000 3 31 Dec 2003 30 Jan 2004 27 Feb 2004 31 Mar 2004 30 May 2003 Monthly volume High Low SIGNIFICANT ANNOUNCEMENTS 27 22 26 12 25 19 Announcement of 4th Quarter Results MISC acquired NOL's Tanker Subsidiary.000.000.000 6 10.000. (MEH) shares from Kuok Brothers Sdn. and IMC Enterprises Incorporated (IMC) 22 Mar 04 Proposed fund raising exercise 24 May 04 Announcement of 4th Quarter Results Source: Bursa Malaysia Berhad Bloomberg MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) May Jul Aug Nov Feb Mar 03 03 03 03 04 04 31 May 2004 30 Jun 2003 31 Jul 2003 30 Sep 2003 31 Oct 2003 30 Apr 2003 29 Aug 2003 28 Nov 2003 30 Apr 2004 0 0 .000 12 15.000.000.000 MISC LOCAL SHARES RM 15 20.
. is the leading international shipping line of Malaysia. The principal business of the Corporation consists of ship-owning. efficient and competitive services. successful Corporation that continues to grow on the solid foundation upon which it was built. “ ” Since its establishment in 1968. Endowed with such diverse operations. plying over 700 ports in more than 100 countries around the world.12 MISC. all linked by the latest information and logistics systems support. MISC offers the total logistics solution to its customers. MISC has indeed become a truly international player. ship management and other related logistics and maritime transportation services. Through its wide network of shipping ports and land transportation systems. MISC offers the widest possible geographical coverage. MISC is expected to benefit and further strengthen business synergies and economies of scale from related operations of its business. This network also extends to many inland destinations and land-locked markets.At A Glance Malaysia International Shipping Corporation Berhad (MISC). MISC has developed into a sound. The public listing of its shares in 1987 and its current standings as the fourth largest company in terms of market capitalisation on the Main Board of Bursa Malaysia Berhad (formerly known as The Kuala Lumpur Stock Exchange) further demonstrates its sound standing and viability.. As a member of the PETRONAS Group. “ Largest single owner-operator of LNG tankers in the world Through the provision of reliable. “ World’s second largest owner-operator of Aframax tanker fleet ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Its modern and ” well-diversified relatively young fleet of 138 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. a subsidiary of PETRONAS.
000 DWT) Semarak Class (16.000 DWT) Melawis Class (8.500 DWT) 7 4 15 2 2 Containerships Above 3000 TEUs 1000 – 3000 TEUs Below 1000 TEUs 4 8 12 24 Bulk Carriers Panamax Handymax Handysize Multipurpose 11 9 36 15 1 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .000 cbm) Puteri Class (130.100 cbm) 3 5 17 5 4 Petroleum Tankers VLCC Aframax Product Tanker LPG 3 35 46 5 3 Chemical Tankers Melati Class (32.8000 cbm) Tenaga Class (130.MISC Fleet Strength Excluding FPSO facility Bunga Kertas As At 30 June 2004 LNG Tankers Aman Class (18.000 cbm) Puteri Satu Class (137.000 DWT) Anggerik Class (30.
Bahamas Bangladesh Chittagong Mongla Belgium Antwerp Ghent 10. 9. Egypt Adabiya Ain Suknar Alexandria Damietta Dekhela El Dekheila Port Said Sidi Kerir Suez 2. Djibouti Djibouti 23. Quebec Port Cartier Roberts Bank Seven Island St. Croatia Omisaji 19. Chile Antofagasta Caleta Caloso Chimbote Coronel Huachipato Huasco Lirquen Mejillones Penco San Antonio San Vicente Valparaiso 16. Cameroon Douala 14. Brazil Altamira Antoninia Aratu Belem Fortaleza Itajai Manaus Paranagua Ponta Da Madeira Porto Trombetas Praia Mole Recife. Denmark Allborg Aarhus Copenhagen Fredericia Great Belt Kalunbourg Karstoe 22. 5. 6. Cyprus Limassol Vassiliko 21. 3. Colombia Buenaventura Covenas Porto Bolivar Puerto Bolivar Santa Marta 18. Bulgaria Bourgas Varna 13. 8. John. Santos Rio De Janeiro Rio Grande Rio Grande Do Sul Santos Sao Francisco Do Sul Sepetiba Trombetas Tubarao Vitoria 11. 4. The Freeport. China Baoshan Bayuquan Beihai Bing Bong Changshu Chiwan Dalian Fangcheng Fuzhou Haikou Huangdao Huangpu Jiangyin Jinzhou Lanshan Liangyungang Longkou Mawan (Chiwan) Nantong Ningbo Qingdao Qinhuangdao Rizhao Shanghai Shuidong Shekou Tianjin Xiamen Xijang Terminal Xingang Yangpu Yangzhou Yantai Yantian Zhangjiagang Zhanjiang Zhapu Jiaxing Zhuhai 17. Costa Rica Caldera 20. Algeria Algiers Arzew Bethioua Bejaia Oran Skikda Skikda Bejaia Angola Palanca Argentina Bahia Blanca Buenos Aires Campana Ensenada La Plata Necochea Racalada Rosario San Lorenzo Aruba Oranjestad Australia Adelaide Albany Auckland Bellbay Bluff Brisbane Bunbury Burnie (Tasmania) Cairns Dalrymple Bay Dampier Darwin Derby King Freemantle Geelong Geraldton Gladstone Gove Groote Eylandt Haypoint Kwinana Laminaria Melbourne Newcastle Port Hedland Port Kembla Port Pirie Port Stanvac Townsville Varanus Island Whitnell Bay Whyalla Bahrain Bahrain Bahamas. Ecuador Esmeraldas Guayaquil 24. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .14 Countries & Ports Of Call 2003/2004 1. John NB St. NFL Stewart Vancouver Victoria 15. Brunei Lumut Seria 12. 7. Canada Becancour Brunswick Contrecouer Gros Cacouna Montreal Neptune Pointe Noire Point Tupper Port Alfred.
Latvia Ventspils 50. Ghana Takoradi 33. Hong Kong Hong Kong 38. Ireland Aughinish Londonderry 43. Germany Bremerhaven Bruke Hamburg Wilhem Shaven 32. II Sendai Shemonoseki Shibushi Shimizu Sodegaura Sukumo Susaki Tachibana Tokachi Tokuyama Tomakomai Tokyo Tsukumi Ube Yokkaichi Yokohama 46. Wangi Ujung Padang Widuri 40. Kuwait Mina Al Ahmadi Ruwais Shuaiba Shuwaikh 49. El Salvador Acajutla 26. Gabon Oweido 30. Iraq Mina Al Bakri 42. Iran Bandar Abbas Bandar Imam Bandar Mashahr Kharg Island 41. Italy Ancona Augusta Bari Cagliari Genoa Gioa Tauro Livorno Millanzzo Sarroch Trieste Vado Ligure 44. Estonia Tallin 27. Liberia Buchanan MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Indonesia Adang Bay Anyer Balikpapan Banjarmasin Blanlanchang Belawan Bitung Bontang Cengkareng Cigading Cilacap Cinta Dumai Gresik Jakarta Kalbut Karimun Kuala Tanjung Lawi-Lawi Lhokseumawe ManggisTerminal Merak NYPCT Padang Pontianak Pulau Laut Pulau Sambu Samarinda Santan Marine Terminal Semarang Senipah South Pulau Laut Surabaya Tanjung Bara Tanjung Priok Tanjung Uban Tarahan Teluk Semangka Tg. Finland Kotka Raahe 28. Jamaica Port Rhoades 45. Kenya Mombasa 48. Georgia Batumi 31. Greece Agoi Theodoroi Adamas Mylaki Piraeus Volos Voudio Bay 34.15 25. India Chennai Cochin Dahej Goa Haldia Jamnagar Kandla Mangalore Nava Sheva New Mangalore Mumbai Mundra Paradip Pipavav Porbandar Sikka Tuticorin Vadinar Visakhapatnam 39. Guatemala Puerto Quetzal 35. Japan Chiba Chita Funabashi Futtsu Hakata Hekinan Hibikinada Higashi-Harima Higashi-Ohgishima Iota Ishigaki Iyomishima Kakogawa Kashima Kawasaki Kimitsu Kinuura Kobe Kushiro Mizushima Nagoya Nanao Negishi Niigata Niihama Ohgishima Oita Onahama Osaka Saganoseki Saiki Sakaiminato Senboku I. Hawaii Hilo Honolulu Kahului 37. Guinea Port Kamsar Umuda 36. France Donges Dunkirk For-sur-Mer Fos lavera Le Havre Montaire Montoir Nantes Rouen Sete 29. Pemancingan Tg. Jordan Aqaba 47.
Mexico Cayo Arcas Coatzacoalcos Dos Bocas Guayamas Lazaro Cardenas Pajaritos Santa Rosalia Ta Kuntah Tampico Vera Cruz 57. Netherlands Antilles Aruba Bonaire St. Oman Mina Al Fahal Muscat Qalhat 67. Rep Of Congo Djeno 78. Republic of Yemen Ash Shihr Terminal 75. Namibia Walvis Bay 61. Slovenia Koper 81. Mozambique Beira Maputo 59. Peru Callao Puta Lobitos 71. Perak Melaka Miri Pasir Gudang Penang Port Dickson Port Klang Prai Sakai Sandakan Sibu Sungai Udang Port Tawau Teluk Ewa Terengganu Crude Oil Terminal 54. Malaysia Bintulu Bunga Raya Marine Terminal Butterworth Dulang Marine Terminal Kapar Kekwa Marine Terminal Kemaman Kerteh Kota Kinabalu Kuantan Kuching Kunak Labuan Lahad Datu Lumut Malong Marine Terminal Manjung. Pakistan Karachi Port Qasim 68. South Korea Busan Daesan Inchon Kunsan Kwangyang Masan Onsan Pohang Pusan Pyongtaek Tong Yeong Ulsan Yosu 83. South Africa Cape Town Durban Richards Bay Saldanha Bay 82. Poland Dansk 69. Madagascar Tamatave 53. Portugal Leixoes 73. Eustatia 63. Lithuania Butinge Gruntartangi Klapeida 52. Mauritania Nouakchott 55. Singapore Singapore 80. Nigeria Bonny Island Calabar Forcados Lagos Nigeria Ea Terminal Odudee Onne Port Harcourt Qua Iboe 65. Spain Alcanar Alicante Algeciras Aviles Barcelona Bilbao Cadiz MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Panama Balboa Cristobal Escobal Panama 70. Norway Farsund Fredrikstad Heroya Mongstad Narvik 66. Morocco Agadir Casablanca Jorf Lasfar Safi 58. New Zealand Dunedin Lyttelton Napier Nelson Picton Tauranga Timaru Wellington Whangarei 64. Russia Kavkaz Primorsk Tuapse Murmansk Novorossiysk St. Saudi Arabia Damam Jeddah Jubail Ras Tanura Ras Al Khafji Yanbu 79. Netherlands Amsterdam Flushing Ijmuiden Rotterdam Sluiskill & Terneuzen St Eustatius 62. Petersburg 77. Philippines Batangas Bataan Isabel Manila Mariveles Subic 72. Romania Constantza 76. Qatar Doha Mesaieed 74. Mauritius Port Louis 56.16 Countries & Main Ports Of Call 2003/2004 (continued) 51. Malta Valentte 60.
Syria Banias Tartous 89. US SW Pass Virgin Island Tacoma Tampa Texas City Wilmington 100. Texas Port Arthur Port Neches Portland Portsmouth Providence Sacramento San Francisco San Nicholas Seattle Smith’s Bluff South Sabine Sparrow Point St. United States of America Baltimore Barbers Points Baton Rouge Baytown Bayway Beaumont Bridgeport Burnside Camden Chalmette Charleston Convent Cove Point Corpus Christi Deer Park Delaware City Everglades Falmouth Freeport Texas Galveston Hampton Road Houston Hydaburg Jacksonville Lake Charles Long Beach Long View Loop Los Angeles Meraux Mobile. Surinam Paranam 87. La Pasadena Pascagoula Paulsboro Perth Amboy Philadelphia Point Comfort. Sri Lanka Colombo 85. Ukraine Odessa Ilichevsk Yuzhnyy 98. Croix. Taiwan Hoping Kaohsiung Mai Liao Taichung Sha Lung Yung An 90. Thailand Bangkok Bangsaphan Benchamas Marine Terminal Khanom Kohsichang Laem Chabang Mapthaput Platong Marine Terminal Rayong Sriracha 91. United Kingdom Birmingham Coryton Fawley Felixstowe Flotta Gilbraltar Hamble Houndpoint Immingham Liverpool London Niggi Bay Port Bury. Bristol Port Talbot Portbury Sollumvoe Southampton Teesport Tilbury Transmere Whitegate 97.17 Canary Islands Cartagena El Ferrol Ferrol Garrucha Gijon Huelva La Pallice La Skihra La Spezia Las Palmas Leixoes Tarragona Tenerife Valencia 84. Venezuela Amuay Bay Jose Terminal La Salina Maracaibo Pertigalete Petrozuata Puerto Cabello Puerto La Cruz Puerto Miranda 101. Sudan Bashayer Port Sudan 86. Uruguay Montevideo Nueva Palmira Zona Alpha 99. Trinidad & Tobago Galeota Point Point Fortin Point Lisas 93. Turkey Alliaga Bosporous Canakale Ceyhan Gebze Gemlik Marmara Mersin Nemrut Bay Tavsancil 95. Vietnam Campa Haiphong Ho Chi Minh Nha Trang Randong Vung Tau MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . United Arab Emirates Abu Dhabi Dubai Fujairah Hamriya Jebel Ali Khor Fakkan Sharjah 96. Rose St. Charles St. Croix St. Alabama Mississipi River Nederland New Castle New Orleans New York Newark Norco. Tunisia Sfax Tunis 94. Petersberg St. Togo Kpeme Lome 92. Sweden Brofjorden Frederecia Gothenburg Lulea Oxelosund 88. James St.
V. (Shipping Agent ) 100% Scheepvaartagentuur Nederland Overzee B. Ltd-Bermuda (Ship Owning & Operating) 100% EBC Ltd .V.18 MISC Group Structure As At 30 June 2004 100% (Investment Holdings) AET Holdings (L) Pte Ltd 100% American Eagle Tankers Inc. (Dormant) 100% MISC Capital (L) Ltd (Investment Holdings) 100% MISC Agencies ( Trengganu) Sdn Bhd (Voluntary Winding-up) 100% MISC Agencies (UK) Ltd (Shipping Agent) 100% (Integrated Logistics Services) 100% MISC Integrated Logistics Sdn Bhd 65% MISC Agencies (Sarawak) Sdn Bhd (Shipping Agent) 100% MISC (Japan) Ltd (Port and General Agent) 51% 50% Leo Launches Pte Ltd (Launch Operator) PETRONAS Tankers Sdn Bhd (Ship Management) 100% MISC Haulage Services Sdn Bhd (Container Haulage) 100% MISC (Singapore) Pte Ltd (Shipping Agent) Transasia Pool Pte Ltd (Ship Management) 100% Puteri Delima Satu (L) Pte Ltd (Shipowning) MISC Trucking and 100% Warehousing Services Sdn Bhd (Trucking. MSE-ATB Sdn Bhd Puteri Intan Sdn Bhd (Shipowning) 50% Transware Distribution Services Pte Ltd (Warehousing) 49% 40% 37% 100% Oil & Gas and Power Generation Plants) 100% Puteri Intan Dua (L) Pte Ltd (Shipowning) 100% Techno Indah Sdn Bhd (Sludge Treatment & Generation of Energy) Puteri Nilam Sdn Bhd (Shipowning) 100% Puteri Zamrud Satu (L) Pte Ltd (Shipowning) MISC Agencies (Thailand) Co Ltd (Shipping Agent) 100% Malaysian Tank Cleaning Company Sdn Bhd (Dormant) Mapak Qasim Bulkers Pvt Ltd Malaysian Maritime 70% Academy Sdn Bhd (Education & Training for Seaman & Maritime Personnel) 60% 100% (Shipowning) Puteri Zamrud Sdn Bhd MISC Agencies Lanka (Pvt) Ltd (Shipping Agent & Freight Forwarding Sevices) 75% (Storage of Edible Oil) 65% Affin Merchant Bank Berhad (Merchant Banking) Mapak Edible Oil Pvt Ltd (Dormant) MISC Nigeria Ltd (Ship operating & other activities related to shipping) (Shipowning/Ship Management) 25% Malaysia Pakistan Venture Sdn Bhd (Investment Holdings) 60% Hubei Zhong Chang Vegetable Oil Co Ltd (Vegetable Oil Refinery) Tianjin Voray Bulking Installation Co Ltd (Storage of Vegetable Oil) Beijing King Voray Edible Oil Co Ltd (Vegetable Oil Refinery) 51% Asia LNG Transport Sdn Bhd 25% Trans-ware Logistics (Pvt) Ltd (Inland Container Depot) 50% Asia LNG Transport 51% Dua Sdn Bhd (Shipowning/Ship Management) 25% Voray Holdings Ltd (Investment Holdings) 25% FPSO Ventures Sdn Bhd 35% (Operations and Maintenance of Offshore Terminals) MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .Bermuda (Holding Co) 100% MISC Enterprises Holdings Sdn Bhd (Investment Co) 100% MISC Agencies (Australia) Pty Ltd (Shipping Agent) 100% MISC Agencies Sdn Bhd (Shipping Agent & Warehousing Services) 100% MISA (B) Sdn Bhd (Shipping Agent) 100% MISC Agencies (Netherlands) B. Warehousing & Forwarding Services) 100% MISC Information Technology Sdn Bhd (Voluntary Winding-up) 100% 100% Malaysia Shipyard & Engineering Sdn Bhd (Shipbuilding / Shiprepairing & Heavy Engineering) 100% Malaysia Towage & Transport Sdn Bhd (Hire & Charter of Tug Boats) 100% 100% Puteri Firus Satu (L) Pte Ltd (Shipowning) MISC Ferry Services Sdn Bhd (Dormant) 100% Puteri Nilam Satu (L) Pte Ltd (Shipowning) Puteri Delima Sdn Bhd 100% (Shipowning) Puteri Firus Sdn Bhd 100% (Shipowning) 100% 100% 65% MISC Properties Sdn Bhd (Dormant) MSE Corporation Sdn Bhd (Processing of Copper Grit) 100% Puteri Intan Satu (L) Pte Ltd (Shipowning) MSE Holdings Sdn Bhd (Investment Holdings) 60% (Process Equipment for Petrochemical.
Liberia (Investment Holdings) 50% Olivier Shipping Ltd .Bermuda (Investment Holdings) 25% Moor Industrial Transport Ltd .Liberia (Dormant) Dinosaur Shipping Ltd .Liberia (Dormant) Plate Shipping Ltd .Liberia (Investment Holdings) 100% Thunder Bay Investment Ltd .19 100% American Eagle Tankers UK Ltd (Commercial Ops.Liberia (Shipowning) 100% Gunner Shipping Ltd .Liberia (Investment Holdings) 100% Peddler Shipping Ltd .Liberia 100% Eagle Shipmanagement Pte Ltd (Ship Management) 100% (Shipowning) Neulink Corp 100% (Dormant) 100% Sea Maestro Shipping Ltd .Liberia (Dormant) 100% Pacific Trident Ltd .Liberia (Shipowning) 100% Grand Way Investment Ltd .Liberia (Dormant) Bison Shipping Ltd .Liberia (Shipowning) 100% Growth Shipping Ltd .Liberia (Dormant) MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .Liberia (Shipowning) 100% Humanity Shipping Ltd .Liberia (Dormant) 100% Trailblazer Shipping Ltd .Liberia Esperance Shipping Ltd .Jersey (Investment Holdings) 100% American Marine and Offshore Services Ltd (Investment Holdings) MTL Petrolink Corp American Eagle Tankers Inc.Liberia (Dormant) 100% (Investment Holdings) 100% 100% 100% EBC Holdings Ltd .Liberia (Dormant) 100% Torrent Shipping Ltd .Liberia (Shipowning) 100% 100% Offshore Marine Services Inc (Property Owning) Gangga Nagara Shipping Ltd .Hong Kong (Dormant) 100% Pacific Mattsu Shipping Ltd .Liberia 100% (Dormant) 100% Rhinestone Shipping Ltd .Liberia (Dormant) 100% Sea Maiden Shipping Ltd .Liberia 100% (Shipowning) 100% (Dormant) 100% 100% Crystal Shipowning Co.Bermuda (Ship Management) Trilithon Shipping Pte Ltd (Shipowning) Fantasy Shipping Ltd .Liberia (Dormant) 100% Happy Venture Ltd .Liberia (Dormant) 100% Logger Shipping Ltd . & Chartering) 100% American Eagle Tankers Agencies Inc (Property owning) Pelican Offshore Services Company Inc (Shipowning/Lightering) OMIP.Liberia (Dormant) 100% 100% Roseland Shipping Ltd .Liberia (Dormant) 100% (Shipowning) 100% Trilith Shipping Pte Ltd 100% EBC Shipping Ltd .Liberia (Dormant) 100% Safety Shipping Ltd .Liberia (Dormant) 100% Luminous Shipping Ltd . Ltd Singapore branch (Management Office) 100% 100% EBC Assets Ltd .Liberia (Dormant) 100% (Dormant) Spectrum Shipping Ltd . Inc (Property Owning) 100% EBC Assets Ltd . Pte Ltd (Shipowning) Harlink Corp (Shipowning) MISC Ship Management Sdn Bhd (Dormant) Skystrong Shipping Ltd .Liberia 100% Sun Shipping Ltd .Liberia (Dormant) 100% Marquisa Shipping Ltd .Liberia 100% (Dormant) 100% 100% EBC Shipping Ltd .Liberia (Dormant) 100% Selesa Shipping Ltd .Liberia (Ship Management) 100% Fragrant Shipping Ltd .
e. Mohd Ali bin Hj. Yasin (Deceased on 19 April 2004) Dato’ Shamsul Azhar bin Abbas (Appointed w. Harry K. Mohd Ali bin Hj. 1 July 2004) Chairman Tan Sri Dato Sri Mohd Hassan bin Marican Managing Director/Chief Executive Officer Dato’ Hj.f.misc-bhd.e.f.e. MA 32449 Cable : MALAYASHIP KUALA LUMPUR Website : www. Baharu Zaman MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .f. Hussain Mr. 1 July 2004) Directors Dato Sri Liang Kim Bang Tan Sri Dato’ Seri Dr. 8. Zainul Ariff bin Hj. Jalan Munshi Abdullah 50100 Kuala Lumpur Tel : 603-2721 2222 Fax : 603-2721 2530/31 Stock Exchange Listing The Main Board of Bursa Malaysia Berhad Dato’ Shamsul Azhar bin Abbas (Appointed w. Yasin (Deceased on 19 April 2004) Registered Office Level 25.com Principal Bankers Bumiputra-Commerce Bank Berhad Malayan Banking Berhad Hongkong Bank Malaysia Berhad Share Registrar Symphony Share Registrars Sdn Bhd (formerly known as Malaysian Share Registration Services Sdn Bhd) Level 26. 26 April 2004) Auditors Ernst & Young Level 23A Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur Secretary Fina Norhizah binti Hj. Menon Dato’ Halipah binti Esa (Appointed w. Hj.20 Corporate Information Board of Directors Tan Sri Dato Sri Mohd Hassan bin Marican Dato’ Hj. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 03-2273 8088 Fax : 03-2273 6602 Telex : Naline MA 30325. Menara Multi Purpose Capital Square No.
21 Dato Sri Liang Kim Bang Tan Sri Dato’ Seri Dr. Zainul Ariff bin Hj. Menon Dato’ Halipah binti Esa Fina Norhizah binti Hj. Hj. Hussain Harry K. Baharu Zaman MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
PETRONAS Gas Berhad and Malaysia International Shipping Corporation Berhad. South Africa. He is also the Chairman of Engen Limited. Beyond PETRONAS. A Fellow of the Institute of Chartered Accountants in England and Wales. He is also a member of the Commonwealth Business Council. as well as a member of the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants. he joined PETRONAS in 1989 as Senior Vice President of Finance and was appointed President and CEO in February 1995. and is Chairman of three public listed companies under the Group. namely PETRONAS Dagangan Berhad.22 Profile Of Directors Tan Sri Dato Sri Mohd Hassan bin Marican. He is also a member of the International Investment Council for the Republic of South Africa established by President Thabo Mbeki. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . aged 51. Tan Sri Dato Sri Mohd Hassan is a member of the PETRONAS Board of Directors. a subsidiary of PETRONAS. Tan Sri Dato Sri Mohd Hassan is a Board Member of the Malaysia-Thailand Joint Authority. which oversees petroleum development in the overlapping area between Malaysia and Thailand. Tan Sri Dato Sri Mohd Hassan is an Energy Governor and the current Energy Community Chairman for the World Economic Forum (WEF) as well as a member of the WEF’s Council of 100 Leaders. is the President and Chief Executive Officer of Petroliam Nasional Berhad (PETRONAS).
among other PETRONAS subsidiaries and associate companies in Malaysia and overseas. He is a member of the PETRONAS Board of Directors and sits on the Board of PETRONAS Carigali Sdn. Product Trading and Supply (1980) and Manager. Dato’ Shamsul Azhar was promoted to the position of Vice President. He joined PETRONAS in 1975 as an executive trainee and between 1975 to 1991. he was appointed as the Vice President of PETRONAS Exploration & Production Business. PETRONAS Petrochemical Business and was subsequently appointed as the Vice President of PETRONAS Oil Business in 1999. In 2002. he took up the position as General Manager. a subsidiary of PETRONAS since 1 July 2004. in Energy Management from University of Pennsylvania. Dato’ Shamsul Azhar holds a degree in Political Science from Science University of Malaysia. Bhd. Sc. Economics and Planning (1986). Corporate Planning & Business Development and was promoted to Senior General Manager. he held various managerial positions in PETRONAS including Manager.23 Dato’ Shamsul Azhar bin Abbas. France.. M. is the Vice President of PETRONAS Logistics and Maritime Business and concurrently the Managing Director/Chief Executive Officer and Board Member of MISC. In 1997. Senior Manager Strategic Planning Department (1988) before becoming the Executive Assistant to the President (1991). aged 52. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Corporate Planning the following year. In 1994. USA and Technical Diploma in Petroleum Economics from Insitute Francaise du Petrole (IFP).
was the Sarawak State Financial Secretary. Socio Economic Research Unit. a Malaysian. the National Institute for Public Administration (INTAN). United States of America. Tan Sri Dato’ Seri Dr. He was appointed to the Board in 1972. Dato Sri Liang held various positions in the Sarawak Civil Service. Rashid Hussain Berhad. aged 58. He also undertook a post-graduate course in Public Administration in the University of Cambridge. CMS Trust Management Berhad and several other companies. is an Independent Non-Executive Director of MISC since 27 June 1998.24 Profile Of Directors (continued) Dato Sri Liang Kim Bang. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . aged 67.D in Public Policy from the University of Southern California Los Angeles. Selangor State Government. is an Independent Non-Executive Director of MISC. Prime Minister’s Department and Secretary General of the Ministry of National Unity and Social Development. He holds an MBA from Ohio University and a Ph. PPB Oil Palms Berhad. he has served as Director General. Hussain. he is the NonExecutive Chairman of CMS Steel Berhad and an Independent Non-Executive Director of PPB Group Berhad. and prior to his retirement in 1994. Prime Minister’s Department. Ministry of Education. Implementation Coordination Unit. Presently. Cahya Mata Sarawak Berhad. Hj. England. Zainul Ariff bin Hj. Since 7 May 1998. He has served in various capacities in the Ministry of Agriculture. He is also the Chairman of the MISC Board Audit Committee. Dato Sri Liang graduated from the University of Malaya with Bachelor of Arts and Bachelor of Arts (Honours) degrees.
Employees Provident Fund. he joined Putrajaya Holdings Sdn Bhd as its Chief Operating Officer from 1997 – 2000. She is also a member of the MISC Board Audit Committee. Kontena Nasional Berhad and Amanah Ikhtiar Malaysia. 7 years of which as a Partner. He is a Fellow of the Institute of Chartered Accountants in England and Wales. He joined Public Bank Berhad as General Manager and was subsequently promoted to Executive Vice-President. He is also a Director of Putrajaya Holdings Sdn Bhd. 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. as well as a member of the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants. Ministry of Finance. Pensions Trust Fund. Dato’ Halipah binti Esa. He spent 13 years in public practice at Hanafiah Raslan & Mohamad. is an Independent Non-Executive Director of MISC since 30 August 2001.25 Mr. She sits on the Board of Inland Revenue Board. Menon. He is presently the Group Chief Executive Officer and Executive Director of AWC Facility Solutions Berhad and is a Non-Executive Director of SPK-Sentosa Corporation Berhad and AKN Messaging Technologies Berhad. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Harry K. He is also a member of the MISC Board Audit Committee. After working with two public listed companies. She graduated from the University of Malaya with an honours degree majoring in Economics and later was conferred the Masters of Economics degree from the same University. is an Independent Non-Executive Director of MISC since 26 April 2004. aged 54. aged 54. She is presently the Deputy Secretary General (Policy).
. In 1994. PETRONAS Petrochemical Business and was subsequently appointed as the Vice President of PETRONAS Oil Business in 1999. In 1997. Corporate Planning the following year. Dato’ Shamsul Azhar was promoted to the position of Vice President. he took up the position as General Manager Corporate Planning & Business Development and was promoted to Senior General Manager. in Energy Management from University of Pennsylvania. Economics and Planning (1986). France. is the Vice President of PETRONAS Logistics and Maritime Business and concurrently the Managing Director/Chief Executive Officer and Board Member of MISC. In 2002.26 Managing Director / Chief Executive Officer Dato’ Shamsul Azhar bin Abbas Management Committee Dato’ Shamsul Azhar bin Abbas. aged 52. among other PETRONAS subsidiaries and associate companies in Malaysia and overseas. USA and Technical Diploma in Petroleum Economics from Institute Francaise du Petrole (IFP). MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Product Trading and Supply (1980) and Manager. Dato’ Shamsul Azhar holds a degree in Political Science from Science University of Malaysia. a subsidiary of PETRONAS since 1 July 2004. He joined PETRONAS in 1975 as an executive trainee and between 1975 to 1991 he held various managerial positions in PETRONAS including Manager. Bhd. He is a member of the PETRONAS Board of Directors and sits on the Board of PETRONAS Carigali Sdn. Sc. he was appointed as the Vice President of PETRONAS Exploration & Production Business. Senior Manager Strategic Planning Department (1988) before becoming the Executive Assistant to the President (1991). M.
Liner & Logistics Business. is the Senior General Manager. United Kingdom and is a registered Professional Engineer with the Board of Engineers . World Shipping Council and a Director of Through Transport Club of Bermuda and Eurasia and various subsidiaries of MISC Berhad. Bhd. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) from Sheffield University. Malaysia. Abdul Aziz graduated with a Diploma in Accountancy from MARA Institute of Technology and is a member of the Chartered Institute of Logistics and Transport. Bhd. He serves as a Board Member of the Maritime Institute of Malaysia (MIMA) and also sits as a member of the Pasir Gudang Local Authority Advisory Council. Abdul Rahim graduated with an honours degree in Mechanical Engineering Malaysia and Member of the Institute of Engineers. He is also Director of various subsidiaries of MISC Berhad. for 13 years and was the Chief Executive Officer for 7 years until April 2004. Malaysia. He was the Managing Director of Hanjin Lines Agencies before moving on to begin his own consultancy work in areas of management turnaround. he served the Shell Group of Companies for 13 years in various capacities including Head of Construction at Sarawak Shell Berhad. He joined PETRONAS in 1989 and has served in various capacities in PETRONAS Carigali Sdn. In his current capacity. integrated logistics management and tax consultant on Customs and Excise issues. Nordin bin Mat Yusoff. before joining MISC in 2001. is the Senior General Manager. and was involved in project management of various new shipbuilding and offshore structures fabrication works. He currently sits as Committee member of the various Classification Societies and international shipping organisations. Scotland with a degree in Naval Architecture & Ocean Engineering and is a registered professional engineer with the Board of Engineers. United Kingdom and Malaysia Charter. He also served in Malaysia Shipyard And Engineering Sdn. Prior to joining PETRONAS. Ganapathy General Manager Bulk Services Baharudin bin Mydin General Manager Human Resource Mohd Hisham bin Mohd Rapee General Manager Financial Services Noraini binti Che Dan General Manager Corporate Planning Services Michael Ting Sii Ching Abdul Aziz bin Meor Ngah. a member of the Malaysian Defence Industry Council (MDIC) and Committee member of Classification Society.27 Senior General Manager Liner & Logistics Business Abdul Aziz bin Meor Ngah Senior General Manager Fleet Management Services Nordin bin Mat Yusoff Senior General Manager Group Business Development Abdul Rahim bin Abdul Rahman Regional Business Director (Europe. He is also a Director of P&I Club and various subsidiaries of MISC Berhad. Abdul Rahim bin Abdul Rahman. Group Business Development. He has over 29 years of experience in the shipping industry and served in various capacities in MISC including Director Liner International Services. Bhd. Africa & FSU) Amir Hamzah bin Azizan General Manager LNG Business And Petronas Tankers Sdn Bhd Ahmad Zohri bin Ahmad Zohri General Manager Tanker Business Gunaseharan a/l R. Company Site Representative. he sits as a member of the International Council of Container Operators (Box Club). is the Senior General Manager. Americas. aged 50. aged 45. Zeit Bay Project at Shell Egypt and Project Manager at Shell Joint-Venture Operation in Netherlands. Nordin graduated from University of Glasgow. he was with Malaysia Shipyard and Engineering (MSE) Sdn. Prior to joining MISC in May 2004. Bhd. Fleet Management Services. Director Corporate Planning and Director Offshore Services. aged 53. and PETRONAS Tankers Sdn.
Petroleum Business Unit and subsequently. including as CEO of PETRONAS Maritime Services Sdn Bhd and Senior Manager in Malaysia LNG Sdn Bhd. Ahmad Zohri bin Ahmad Zohri. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . London. and also serves on the Boards of the LNG ship-owning subsidiaries of MISC. he was appointed as Head. USA. Internal Auditor at Shell Eastern Petroleum Pte Ltd. Amir Hamzah graduated with Bachelor of Science degree in Management (majoring in Finance and Economics) from Syracuse University.K. Ahmad Zohri was a Lecturer at Akademi Laut Malaysia and University Putra Malaysia. he served the Shell Group of Companies for 10 years in various capacities including Head of Financial Services and Manager Planning & Support at Sarawak Shell Berhad.K. LNG Business. London. He has served in various capacities in the PETRONAS Group since 1981. New York. is the General Manager.28 Management Committee (continued) Amir Hamzah Bin Azizan. Gunaseharan a/l R. he also serves as Chairman of American Eagle Tankers Inc. Prior to joining PETRONAS. with Bachelor of Science (Hons. Gunaseharan graduated with an MBA from University of Bath. Ltd and sits on the Boards of a number of subsidiaries of the MISC Group of Companies. covering upstream and downstream sectors. He joined MISC in the year 2000 and was the Group's General Manager of Corporate Planning Services before assuming his current role. he was appointed the Project Manager of Petroleum Services and in 1996 as Manager Petroleum Services. U.) degree in Nautical Studies majoring in Shipping Business and Port Management. aged 52. He serves on the Boards of a couple of subsidiaries of MISC Group of Companies.K. Africa and FSU) of MISC stationed in London. He also attended the Stanford Executive Progamme at Stanford University. Marketing Credit Accountant at Shell Singapore Pte Ltd. is the General Manager. He is also an Exco Member of MASA (Malaysian Shipowners’ Association). Prior to joining PETRONAS. United Kingdom. a U.. In 1995. Ganapathy. and Senior Treasury Advisor at Shell International Ltd. He joined MISC’s shore services in 1992 and was attached to the Petroleum Services Unit. In 2000. He sits on the Board of PETRONAS Maritime Services Sdn Bhd. aged 37 is the Regional Business Director (Europe. Within MISC. U. Americas. he was given the additional responsibility of leading the Chemical Business Unit. based ship management company. aged 49. Tanker Business. in 2001. He is a qualified mariner having served with Ocean Fleets Ltd. He is a member of the Lloyds Asia Shipowners Committee. for 8 years. after graduating in 1977 from Liverpool Polytechnic. and has also completed the Qualifying Examination of the Institute of Chartered Shipbrokers.
Hisham bin Mohd. Prior to joining MISC. Senior Manager Commercial. Canada. is the General Manager. She graduated from University of Manchester with an honours degree in Economics. Bulk Services. he was the Senior Manager Strategy and Business Development Corporate Planning Unit of MISC. Subsequent to that.29 Baharudin bin Mydin. having held senior managerial positions in human resource in PETRONAS Carigali Sdn Bhd. He joined PETRONAS in 1975 and has served in various capacities within the PETRONAS Group including General Manager LPG and Petroleum Products Trading as well as Senior Manager Sales and Marketing. aged 48. aged 52. Prior to assuming his current position. Mohd Hisham graduated from University of Malaya in 1975 with an honours degree in Arts (History). Rapee. is the General Manager. Prior to joining MISC. Michael Ting Sii Ching. Mohd. is the General Manager. he served the Arthur Andersen/HRM Consulting Division for around 9 years as Senior Consulting Manager (final position) before leaving to join the PhileoAllied Group to head its Corporate Finance Business Unit as General Manager/Executive Director for over 8 years. Baharudin graduated from National University of Malaysia (UKM) with a Bachelor of Arts degree in Economics and Management. He is also a graduate of the Senior Management Development Programme – INSEAD. is the General Manager. Management and Financial Advisory Practice for two and half years before joining MISC. She is a member of the Malaysian Institute of Accountants and The Malaysian Institute of Certified Public Accountants. He joined PETRONAS in 1983 and has wide experience in Human Resource and Administration. Human Resource. PETRONAS Tankers Sdn Bhd and PETRONAS Holdings. Financial Services. Malaysia LNG Tiga Sdn Bhd and Senior Manager Planning and Chartering. aged 54. she served Pernas International Holdings Berhad for 15 years in various capacities including Group General Manager Finance and Chief Financial Officer. Noraini binti Che Dan. Petronas Tankers Sdn Bhd. he started and managed his own Corporate. She sits on the Board of Labuan Re Insurance and also serves on the Board of MISC subsidiaries. Malaysia LNG Sdn Bhd. aged 48. Corporate Planning Services. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . He graduated with a Bachelor of Business Administration degree (majoring in Accounting and MIS) from Simon Fraser University.
30 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
to corporate “committedthrough well-being strong leadership & good corporate governance ”
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Our Corporate Governance Statement
The Company is committed to achieve high and excellent standards of corporate governance throughout the Group and to adhere to the highest level of integrity and ethical standards in all of its business dealings.
The Board of Directors of Malaysia International Shipping Corporation Berhad (the Board) is committed to the principles of corporate governance in the Malaysian Code of Corporate Governance (“the Code”) and to ensuring that the highest standards of corporate governance is applied throughout the Group. The Board strives to adopt the substance behind corporate governance prescriptions and not merely the form.
The Board is pleased to provide the following statement, which outlines the main corporate governance practices.
The Board of Directors
An experienced and dedicated Board consisting of members with a wide range of financial, business and public service backgrounds leads and controls the Group effectively. The Group recognises the vital role played by the Board of Directors in the stewardship of its direction and operations, and ultimately the enhancement of longterm shareholder value. The Directors bring depth and diversity in their expertise to the leadership of the challenging and highly competitive shipping and integrated logistic business.
The Board reserves material matters to itself for decision, which includes the overall Group strategy and direction, acquisition and divestment policy, approval of major capital expenditure projects and significant financial matters, as well as succession planning for top management.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
The Board comprises of 6 members, comprising of Chairman, who is a NonExecutive Director, an Executive Director who is the Managing Director/Chief Executive Officer and four (4) Independent Non-Executive Directors as defined under the Listing Requirements of Bursa Malaysia Berhad (formerly known as Kuala Lumpur Stock Exchange Berhad). The presence of independent non-executive directors of the calibre necessary to execute sufficient weight in Board decisions creates a balance in the Board.
During the 12 months period ended 31 March 2004, five meetings of the Board were held. A majority of the Directors attended all the Board
meetings held during their tenure. Details of attendance are presented on page 37 of this Annual Report.
A brief profile of each Director is presented on pages 22 to 25 of this Annual Report.
The agenda and a full set of papers for consideration are timely distributed
There is a clear division of responsibilities between the roles of the Chairman and the Managing Director/Chief Executive Officer to ensure a balance of power and authority. The Chairman is primarily responsible for the orderly conduct and working of the Board whilst the Managing Director/Chief Executive Officer is responsible for the overall operations of the business and the implementation of the Board’s strategies and policies. The Managing Director/Chief Executive Officer is assisted in managing the business on a day-to-day basis by the Management Committee, which he chairs and which meets twice a month.
prior to each Board meetings of the Board to ensure that Directors have sufficient time to study them and be properly prepared for discussion and informed decision-making.
financial and non-financial informations are encapsulated in the papers covering
All the 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. 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, as well as the shareholders, employees and customers.
amongst others, strategic, operational, regulatory, marketing and human
Secretary of the
meetings, which include a record of the decisions and resolutions of the Board meetings.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Directors who are appointed by the Board shall hold office until the next Annual General Meeting of the Corporation when they shall retire and be eligible for re-election by the shareholders. Any Committee member who has interest in any matter raised by the Committee abstains himself from the deliberations and voting. Approved recommendations are then further recommended by the procedures are followed and that applicable rules and regulations are complied with. Board to the shareholders at the Annual General Meeting for the shareholders’ approval. shall retire from office at least once every three years but shall be eligible for re-election. we have encouraged non-public listed companies’ Directors in our Group to attend for both of the training programmes so as to place higher standard on them in equipping themselves to effectively discharge their duties as directors. All members of the Committee participate in assessing. Directors are encouraged and are attending continuous education programmes and seminars to keep abreast with developments in the market place. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Nomination Committee Eventhough it is only compulsory for all public listed companies’ directors to attend MAP and CEP Courses to the satisfaction of Bursa Malaysia Training Sdn Bhd The Board itself functions as a (formerly known as KLSE Training Sdn Bhd). appointing and orienting suitable candidates who can contribute effectively to the growth of the Corporation. identifying. The effectiveness of the Board as a whole and the contribution of each Director are also assessed.34 Our Corporate Governance Statement (continued) The Directors have unhindered access to the advice and services of the Company Secretary who is responsible for ensuring that Board meeting 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. 5/2001 Training For Directors issued in relation to the Listing Requirements. recruiting. Association require that at least one third of the Directors shall retire at every Annual General Meeting and that each Director. Mandatory Accreditation Programme/Continuing Education Programme All Members of the Board have attended the Mandatory Accreditation Training Programme (MAP) as prescribed in Practice Note No. The Corporation’s Articles of The Committee also ensures that the Board has an appropriate balance of expertise and abilities. Nomination Committee. Appointment and Re-election of Directors nominating.
The Board itself 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. Meeting (AGM) is the principal forum for interaction with its valued shareholders and it provides the opportunity to gather views of. Briefing sessions are held for analysts twice a year on the Group’s performance. In terms of financial reporting the Board is Communication with Investors and Shareholders committed to provide and present a balanced and meaningful assessment of The Group values dialogue with investors and analysts. performance and major developments. Any information that may be regarded as undisclosed material or price sensitive will not be disclosed in the presentation nor will it be given to any individual shareholder or shareholder group until after the announcement to Bursa Malaysia Berhad (formerly known as KLSE) has been made. and answer question from. The policy is to provide the remuneration packages necessary to attract. Accountability and Audit In effect. recommends the remuneration of each Director to the shareholders for approval at the Annual General Meeting. therefore MISC has a Remuneration Committee at two levels. At each Annual General Meeting. passed as well as about the Group’s operations in general. the Group’s financial performance and prospects at the end of the financial year. primarily through the annual financial statements. both the private and institutional shareholders Remuneration Committee on all issues relevant to the Company. retain and motivate directors of the quality required to manage the business of the Company and to align the interest of the Directors with those of shareholders. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . The Directors concerned do not participate in the deliberations and voting on decisions in respect of their own remuneration packages. as a whole. Presentations are made as and when appropriate to explain the Group’s strategy.35 Directors’ Remuneration The Company’s dialogue with shareholders at the Annual General The Board. the Board presents the progress and performance of the business and shareholders are encouraged to participate in the question and answer session both on the resolutions to be Matters concerning the remuneration of senior staff of the Group excluding members of the Management Committee are considered by the Management Development Committee. and quarterly announcement of results to shareholders as well as the Chairman’s statement and review of operations in the Annual Report.
completeness accuracy. The duties of the Board Audit Committee in relation to the role of the external auditors are included in the Board Audit Committee’s terms of reference as presented on pages 44 to 45 of this Annual Report. Hussain as Chairman. Reference Board Audit Internal Control Committee are also presented on page 49 of this Annual Report. processes. Board Audit Committee The Board Audit Committee meets the external auditors to discuss the audit The Board Audit Committee consists of four independent Non-Executive memorandum. Committee meetings. the in compliance with the accounting standards in Malaysia. as required. the annual financial statements and audit findings and whenever deemed necessary. members Details of attendance are Relationship with External Auditors presented on page 37 of this Annual Report. Zainul Ariff bin Hj. and the quality of its financial reporting. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Hj. the Board 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 systems. A majority of the attended all Information on the Group’s internal control is presented in the Statement on Internal Control set out on page 38 of this Annual Report. where necessary. the Head of Ship Management Audit and the External Auditors. the General Manager Financial Services. The Board ensures that there are formal and transparent arrangements for the maintenance of an objective and professional relationship with the external auditors’ The Managing Director. were in attendance at all the meetings. information for the Group’s financial reporting adequacy. Directors with Tan Sri Dato’ Seri Dr. The Board 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. The Board Audit Committee met four times during the financial year. The composition of the and Terms of The minutes of the Board Audit Committee are formally tabled to the Board for noting and action.36 Our Corporate Governance Statement (continued) The Board is assisted by the Board Audit Committee to scrutinise In addition to the duties and responsibilities set out in the Terms of Reference. General Manager Internal Audit.
000 Tan Sri Dato Sri Mohd Hassan bin Marican 5 5 – – Dato’ Hj.000 12. Harry K.800 262.466 Dato’ Hamzah bin Bakar 2 2 – – Mr.600 Dato Sri Liang Kim Bang 5 5 3 4 Datuk Siti Hadzar binti Mohd IsmailI 32. Menon I 36.000 2.000 – – 62.000 1.313 Note: + Non-Executive Director * Executive Director I Independent Non-Executive Director MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .600 8. Zainul Ariff bin Hj. Hussain I 36.000 8.647 1.000 1.37 Details of Attendance at Meetings held in the Financial Year Ended 31 March 2004 Board Of Directors Board Meetings Board Audit Committee (BAC) Directors’ Remuneration for the Financial Year Ended 31 March 2004 Board Annual Fees Attendance Fees BAC BAC Annual Attendance Fees Fees Total Maximum Meetings attended possible to attend Meetings attended Maximum possible to attend Tan Sri Dato Sri Mohd Hassan bin Marican+ 60. Harry K.600 37.600 47.600 Mr.600 Tan Sri Dato’ Seri Dr.400 1.200 4. Yasin 5 5 – – Dato Sri Liang Kim BangI 36. Mohd Ali bin Hj.200 47. Menon 4 5 4 4 Total 210.666 800 – – 10.000 2.200 8.000 2.047 Datuk Siti Hadzar Mohd Ismail 3 5 2 4 Tan Sri Dato’ Seri Dr Hj Zainul Ariff bin Hj.400 800 43.600 51.400 1.313 9. Hussain 5 5 4 4 Dato’ Hamzah bin Bakar I 9. Yasin* – – – – – Dato’ Hj. Mohd Ali bin Hj. Hj.
27 (b) requires the Board to make a statement about the state of internal control of the listed entity as a Group. evaluating and managing the significant risks faced by the Group. This is then The Board of Malaysia International Shipping Corporation Berhad (MISC) is committed to continuously improve the Group’s system of internal control and is pleased to provide the following statement. Requirements. Accountability of the Board The Board of MISC acknowledges its overall responsibility for the Group’s system of internal control and its effectiveness shareholders’ the strategic to safeguard and the the 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. evaluate the impact and set policies relating to the risks and the relevant control thereof. Accordingly. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . to achieve business objectives. Bursa Malaysia Berhad Listing The Board defines risk parameters and standards guided by the corporate objective to maximize long term shareholders’ value whilst meeting the needs of the customers. operational and compliance controls and the risk management policies and procedures. employees and all related stakeholders.38 Statement On Internal Control Introduction 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. these internal controls systems can only provide reasonable and not absolute assurance against material misstatement or loss or the occurrence of unforeseeable circumstances. which has been in place for the financial year under review. In discharging its stewardship responsibilities. The Board confirms that there is a continuous process for identifying. of which details are set-out in the following page. Paragraph 15. delegated to the Management to implement the Board’s direction & policies on risk and control. This includes reviewing financial. investment direction. the Board has defined the risk management framework to identify the key risk areas. 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. Group’s Assets.
The identified four risk committee/councils shall report to the RAG on any issues and developments pertaining to the respective risk areas. Country Risk and Finance Risk. A proper structure and reporting framework has been established to ensure risks are being monitored. assessed and reviewed regularly as reflected below: The RAG in the capacity of overseeing overall risks in MISC is responsible to advise the Managing Director (MD) / Management Committee (MC) on issues relating to : • reviewing policies. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Credit Risk.39 Risk advisory group meeting in progress Risk Management Framework The Board has endorsed the establishment of a Risk Advisory Group (RAG) and identified that MISC is exposed to four (4) major risks namely Maritime Risk. procedures and guidelines related to risk management in line with market changes over time • reviewing positions and exposures to ensure compliance with group policy and recommend corrective actions • addressing issues arising from business lines and recommend solutions to management Board of Directors (Board) Managing Director (MD) / Management Committee (MC) Risk Advisory Group (RAG) • advising management on risk limits Maritime Risk Council (MRC) Finance Risk Council (FRC) The RAG Meeting is scheduled to meet regularly and updates any risk management issues to the MD/MC and MISC Credit Committee (MCC) Country Risk Council (CRC) Board on a quarterly basis respectively.
Senior Management sets the tone for an effective control culture in the organisation through the company’s shared values. The Group has financial risk guidelines for managing the Group’s foreign exchange. A Maritime Risk Profiling workshop was conducted during the year to revalidate the Maritime Risk exposure. 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). Further improvements on preventive and recovery controls have been identified to be implemented to ensure risk exposure are mitigated / reduced. develops and recommends risk management strategies and policies for the PETRONAS group. Continual assessment and profiling is carried out to ensure preventive and recovery measures are adequate in the challenging maritime environment. are made by leveraging on PETRONAS group resources ie Country • • • MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . reviews and monitors finance risk exposure at Group level and makes appropriate recommendations to companies within the Group. monitoring the risk exposures and planning responses to potential major risk events. The MISC Credit Committee (MCC) regularly reviews the credit risk and advises on appropriate measures to improve existing credit control Risk Council (CRC). The credit & trading policy and guidelines has been developed to ensure all matters relating to credit & trading risk are being addressed accordingly with proper guidelines. Country risk assessments where required. The FRC is a forum which proactively discusses. which has an established Risk Management Committee. MISC benefited from being a part of the PETRONAS Group. developed to focus on the importance of these four key values:• Loyalty Integrity Professionalism Cohesiveness procedures and practices and the quality of Trade Accounts Receivables. which defines. Proper assessments would ensure that risk associated with conducting business in a foreign country is properly assessed and managed. 2. the Risk Management Committee also coordinates group-wide risk management in terms of building risk management awareness and capabilities. In addition. price and counter-party risks. of which MISC’s Managing Director is a member. It also fosters coordination of the Group Finance risk management practices and approaches in accordance with established policies and guidelines. interest rate. The Group also leverages on PETRONAS group resources via the Finance Risk Council (FRC) when addressing / assessing financial risks. The Board Audit Committee operating within its terms of reference and Management Audit Committee 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. liquidity.40 Statement On Internal Control (continued) The Maritime Risk Council (MRC) is responsible to ensure various maritimerelated risks are identified and all necessary measures are in place for MISC to comply with the stringent international safety and environmental standards. 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 vettings by oil majors and audits by the Malaysian Maritime Authority and ship classification societies to maintain international safety management certification under the relevant Codes. conducts regular audits on the physical condition and operational health of the Group’s vessels. The Ship Management Audit Division. The minutes of the Management Audit Committee meetings are also submitted to the Board Audit Committee. Safety & Environmental (HSE) policy and framework as well as security procedures in place with continuous efforts made to ensure strict adherence to the specified standards and practices. The audit also assesses crew discipline and competency. In addition. The audits are designed to ensure vessels’ integrity and that maintenance is performed to enhance safety and reliability of vessels at all times. and updates the Management Audit Committee on the status of the action taken. reporting to the Board Audit Committee. British Petroleum Plc (BP). response and implementation of corrective actions. The Internal Audit Division. Prior to submission to the Board Audit Committee. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . SHELL and Broken-Hill Properties (BHP). The Ship Management Audit Division would submit the findings and recommendations on corrective actions of each ship audited to the Fleet Management Services Division and conduct follow-ups on the status of the corrective actions. the findings are analysed and compiled into quarterly reports and submitted to the Management Audit Committee for review. Chevron Texaco. The Management Audit Committee is also updated on the status of the corrective actions. EXXON MOBIL. The customers are namely. 4. the Internal Audit Division would submit the findings and recommendations on Internal Controls to the Management Audit Committee for review.41 Management audit committee in discussion 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. 5. Employees are required to strictly adhere to the Code in performing their duties. performs scheduled reviews of operations and compliance with company’s policies and procedures to assess effectiveness of internal controls. On a quarterly basis. which reports regularly to the Management and Board Audit Committee. MISC’s vessels are also subject to stringent audits and vettings to meet the various regulatory and commercial include requirements. There is a clear Health. The organisation is subjected to periodic management reviews by our customer’s risk management entity. response and decisions on further actions. 3. The Board Audit Committee reviews all reports from the Internal Audit Division and conducts annual assessment on the adequacy of Internal Audit Division’s scope of work and resources.
Statement On Internal Control (continued)
Other Significant Elements of Internal Control Systems The Board reviews quarterly reports from Management on the key operating performance, legal, environmental and regulatory matters. Financial performance is deliberated by the Management Committee and also tabled to the Board Audit Committee and Board on a quarterly basis.
There is a clear procedure for investment appraisal including equity investment or divestment and capital expenditure. Tender Committees are established to ensure tender evaluation exercises are conducted in an effective, transparent and fair manner. Information and Communication and Technology (ICT) is extensively employed in MISC to automate work processes and to collect key business information. There is a clear ITC guideline on ICT risk assessment and mitigation. The guideline spells out the risk management process by identifying the risk exposures, assessing and analysing the effect of the exposures and deriving a set of measures to manage and treat the identified risks. The Business Transformation Team (BTT) is established as a change agent in
Limits of Authority (LOA) manual provides a sound framework of authority and accountability within the organisation and to facilitate quality and timely corporate decision making at the appropriate level in the organisation’s hierarchy. The Group performs comprehensive annual budgeting and forecasting exercise including development of business strategies for the next five years, business and establishments and of performance indicators against which units subsidiary companies can be evaluated. Variances against budget are analysed and reported internally on a monthly and quarterly basis and reported quarterly to the Board. The Group’s strategic directions are also reviewed semiannually taking into account changes in market conditions and significant business risks.
ensuring MISC is well equipped with the latest and advanced technology in improving work and decision making processes. The BTT has also been entrusted to manage change and organizational restructuring resulting from new systems and process rollout throughout the Group. Progress of systems implementation is monitored and reported at the Business Integration Committee to ensure smooth implementation. The professionalism and competency of staff are enhanced through a properly planned training, development program and also a stringent recruitment process. A performance appraisal system of staff is in place, with established targets and accountability and is reviewed on an annual basis. Action plans are prepared to ensure that staff obtain the required skills to fulfil their responsibilities and that the company can meet its future management requirements. The Board does not regularly review the internal control system of its associated companies and joint ventures, as the Board does not have any direct control over their operations. Notwithstanding, 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. 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. There were no material losses incurred during the current financial year as a result of weaknesses of internal control. Management would continue to take measures to strengthen the Group’s control environment. This statement is made in accordance with the resolution of the Board of Directors dated 24 May 2004.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Board Audit Committee
From left: Tan Sri Dato’ Seri Dr. Hj. Zainul Ariff bin Hj. Hussain, Dato Sri Liang Kim Bang, Mr. Harry K. Menon, Dato’ Halipah binti Esa
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Terms Of Reference Of Board Audit Committee
1. Constitution 3. Chairman of Board Audit Committee
The Board Audit Committee was established on 28 June 1993. 2. Membership 4.
The members of the Board Audit Committee shall elect a Chairman from among their number who shall be an independent Director. Attendance at Meetings
The Committee shall be appointed by the Board from amongst its Directors and shall consist of not less than three members with the majority Directors. being independent
The Managing Director, General Manager Financial Services, General Manager Internal Audit, General Manager Ship Management Audit and a representative of the external auditors shall normally attend meetings. However, at least once a year the Committee shall meet with the external auditors without any executive Board member present. The Company Secretary shall be the Secretary of the Committee.
At least one member of the Board Audit Committee must be a 5. Frequency of Meetings 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 in Part II of the 1st Schedule of the Accountants Act 1967. The Committee is authorised by the Board to obtain outside legal or other No Alternate Director can be appointed a member of the Board Audit Committee. A quorum shall be two members. 7. Duties independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary. The Committee is authorised by the Board to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are directed to cooperate with any request made by the Committee. 6. Authority Meetings shall be held not less than three times a year. The external auditors may request a meeting if they consider that one is necessary.
The duties of the Committee shall include the following: • review the following and report to the Board of Directors:a. with the external auditors, the audit plan;
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
iii. their audit report. i. processes. significant and unusual events. the adequacy of the scope. with the external auditors. e. and whether there is any reason (supported by grounds) to believe that the Corporation’s external auditors are not suitable for re-appointment. focusing particularly on:– i. h. 8. the internal audit programme. the results of the internal audits. with accounting standards and other legal Note: * Independent Non-Executive Directors Audit Committee Members of meetings of the Committee to all Members of the Board. ii. prior to the approval by the Board of Directors. Hussain* (Chairman) Dato Sri Liang Kim Bang* Mr. Menon* Dato’ Halipah binti Esa* MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Reporting Procedures The Secretary shall circulate the minutes c. processes or investigation undertaken and whether or not appropriate action is taken on the recommendations of the internal audit function. with the external auditors. d. Zainul Ariff bin Hj. any related party transaction and conflict of interest situation that may arise within the Corporation or Group including any transaction. f. Hj. and • recommend the nomination of a person or persons as external auditors. any letter of resignation from the external auditors. Harry K. j. g. and compliance requirements. Tan Sri Dato’ Seri Dr. procedure or course of conduct that raise questions of management integrity. the assistance and cooperation given by the employees of the Corporation to the external auditors. changes in or implementation of major accounting policy changes.45 b. functions and resources of the internal audit functions and that it has the necessary authority to carry out its work. their evaluation of the system of internal controls. the quarterly results and year end financial statements.
46 The Year In Review MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
47 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
The exceptional performance was mainly attributed to better freight rates in most of the shipping segments and the incorporation of American Eagle Tankers Inc. effectively broadening MISC’s earnings base and at the same time reducing the Company’s reliance on the Liquefied Natural Gas (LNG) shipping business.326 million from 1.4 1500 1.310 million.415.3 1000 RM1. Ltd. resulting in higher freight rates throughout most of the shipping segments. an increase of 40% from RM5. operational efficiency and cost management. The inclusion of AET has increased the contribution of 500 0 +Based on annualised 15 months figures MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) 04 20 3 0 20 2 0 20 1 0 20 0 + 0 20 the petroleum shipping business to the Group’s bottomline from 9% to about 28%. (AET) financial results into the Group. Group profit before tax surged 77.417. MISC registered the best ever results in its history by appropriately positioning itself to capitalise on the stronger freight rates environment and diligently following through its strategic initiatives in the areas of business PROFIT BEFORE TAXATION RM Million 2500 2. Financial Performance 2000 Operating in a favourable business environment.5% to a record high of RM2. MISC turned in a record revenue of RM7.606.728.326. the year saw increased demand for maritime logistics services.3 million. “ ” The period under review was an exceptionally good year for the shipping business on the back of a recovering global economy.6 1. Despite continuing geopolitical instability and uncertainties globally.48 On behalf of the Board of Directors. I am pleased to present the Annual Report of Malaysia International Shipping Corporation Berhad (MISC) for the financial year ended 31 March 2004.433 million recorded in the previous year.3 1. . Against this backdrop.310.4 acquisitions.
49 Chairman’s Statement Tan Sri Dato Sri Mohd Hassan bin Marican Installation of propeller during the construction of LNG tanker. Puteri Nilam Satu. The delivery of Puteri Zamrud Satu in January 2004 increased MISC’s LNG fleet to 17. .
6 360 372. was declared and paid in December 2003. Right: Duty engineer at the engine room during maneouvering. plus a special dividend of 10 sen per share. Earnings per share increased to 123.0 558. tax exempt. MISC continued to focus on serving the energy sector particularly through the LNG. . Dividend 480 483.6% previously.82 times.6 sen before. but still well below the average for the shipping industry. bringing the total dividend for the financial year to 40 sen per share. The financing of the Group’s business expansion strategy resulted in a higher Debt to Equity ratio of 0. A lot of effort went into repositioning the Liner business towards higher yielding long haul segments.5 sen previously while Net Tangible Assets per share rose to 557. The Company managed to turn around its Liner business through business rationalization. petroleum. tax exempt. The bulk shipping business also showed a marked improvement in profitability due to record freight rates and lower operating cost.1 sen from 70. The dividend amount.0 558. better cost management and improved work processes. tax exempt.9 sen from 496. and chemical shipping businesses.50 Top: All of MISC’s vessels undergo periodical auditing to ensure highest safety standards are maintained and the continuous improvement of work processes. Through the implementation of the planned strategies and business acquisitions concluded during the year. MISC was able to deliver a higher Return on Shareholders’ DIVIDENDS RM Million 600 558.0 Funds of 20. coupled with the increasing payout over the past five years stand as a testimony to the Company’s unwavering commitment to distribute value to its shareholders. The Board is recommending a final dividend of 15 sen per share. the highest dividend payout in 120 0 + Based on annualised 15 months figures MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) 20 04 20 3 0 20 02 20 1 0 20 + 00 MISC’s history.0 240 An interim dividend of 15 sen per share.2% compared to 13. and offshore and heavy engineering businesses which contributed to more than 90% of the Group’s profits.
Bunga Kelana 7 during construction.51 Floating out of Aframax tanker. MALAYSIAN INTERNATIONAL SHIPPING CORPORATION BERHAD .
enhancing its presence in the region.2 13. During the year. Taiwan. MISC also successfully completed the conversion of MT Bunga Kertas into its first Floating Production. . Storage and Offloading (FPSO) facility.6 21.2 5. the holding company of MSE. to 65% in March 2004. We at MISC however continue to remain vigilant and cautious as we continuously monitor the global economic and geo- + Based on annualised 15 months figures MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) 20 04 20 3 0 20 02 20 1 0 20 + 00 political environment. Tenaga Empat completed its Life Extension Programme. bringing the number of LNG tankers under construction to six. With the contract. Corporate Development Additionally. MISC will position MSE to spearhead its heavy engineering business concentrating on the energy sector. MISC continued to grow its LNG shipping business with the deliveries of Puteri Nilam Satu and Puteri Zamrud Satu during the year resulting in a 17-strong LNG fleet. affirming the optimism that freight rates will continue to remain firm in the current year. The conversion was performed at Malaysia Shipyard and Engineering Sdn Bhd (MSE).4 21. MISC also exercised the options for the construction of two new LNG tankers. It also provided MISC the critical mass and the strategic positioning to serve its global customers with geographical coverage in both the Atlantic Basin and the Arabian Gulf-Far East sector. one of AET’s two VLCC tankers. Holding firm to its vision to be the preferred provider of world class maritime transportation and logistics services. In April and May 2004. especially in the energy transportation sector. MISC disposed fifteen bulk vessels in line with the rationalisation of its bulk shipping business. which was subsequently delivered to PETRONAS on a long-term charter. MISC commenced its offshore business with the chartering of a Floating Storage and Offloading (FSO) facility to Murphy Sarawak Oil Company Ltd. MISC concluded the acquisition of AET from Neptune Orient Lines in July 2003. regulatory developments and the positioning of our global competitors.8 15.6 Future Outlook The global economic recovery driven by higher consumption is expected to continue to be sustained at least in the near term. taking advantage of the increase in the second hand value of bulk vessels. MISC was also successful in securing the second third party LNG contract with J&S Cheniere. effectively transforming the Company into the second largest owner of Aframax petroleum tankers in the world. MISC has two LNG tankers operating in the Mediterranean/Atlantic area. RETURN ON SHAREHOLDERS’ FUNDS Percent 28.52 Right: Eagle Virginia. Left: LNG discharging operations at Kaohsiung Port.6 0 20. which extended its life by another 20 years. The two vessels have been employed to service long term contracts with MLNG Tiga Sdn Bhd.0 16. MISC increased its shareholding in MSE Holdings Sdn Bhd.2 11.0 22.
MISC’s first Floating Production.53 Bunga Kertas . Storage & Offloading (FPSO) facility. MALAYSIAN INTERNATIONAL SHIPPING CORPORATION BERHAD .
54 Left: MISC’s prime movers crossing Penang Bridge. MISC will focus its Liner business on the long haul service where new investments will be required. the attractiveness of the second hand value of bulk vessels provides further opportunity for MISC to consider divesting more of its older vessels. Italy. rationalize its difficult Intra-Asia segment. vision and leadership over the past seven years at the helm of MISC has transformed the Company into a truly global Malaysian company and the fourth largest on the Bursa Malaysia in terms of market capitalisation. I would like to place on record our heartfelt The consolidation of MSE and the introduction of offshore business will strengthen and grow MISC’s income contribution from the targeted energy sector. commitment and loyalty to the Company. Efforts are being made to improve our capabilities and competencies to ensure the realization of our vision to become the preferred provider of world class maritime transportation and logistics services. For the bulk shipping 24 May 2004 Kuala Lumpur TAN SRI DATO SRI MOHD HASSAN BIN MARICAN Chairman Finally. which will increase the contribution from the petroleum shipping business. I would like to express my gratitude to the Board of Directors. Right: Loading operations at La Spezia Port. business. and identify the older and less efficient vessels to be disposed. and to our shareholders who have remained committed to MISC. increased participation of the offshore business. I would also like to thank the Government of Malaysia. Management and staff of MISC for their dedication. condolences to the wife and family members of Allahyarham Dato’ Haji Mohd Ali bin Haji Yasin for the loss of a great man who has been instrumental in steering MISC into what it is today. In summary. MISC will also benefit from the broader income base resulting from the inclusion of AET. Appreciation On behalf of the Board of Directors. commitment. MISC will be able to reap greater synergistic value within the Group and the PETRONAS Group as a whole. our clients. business associates and bankers for their continued support and assistance. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . MISC will continue to focus on growing the high yielding energy transportation segment and retaining its leadership position in the LNG and petroleum shipping businesses. MISC will continue to capitalise on the projected growth in the LNG trade by growing its LNG fleet beyond its current 17 vessels and the additional six vessels already contracted to support additional business from both PETRONAS and third party customers. and the positioning of MISC Integrated Logistics Services (MILS) as a world class third party logistics provider to the energy and consumer product group sectors. His passing is truly a great loss to MISC and we will continue his work to transform MISC into the preferred global energy-based logistics service provider. Cagliary. Indeed. Through the repositioning of MSE. Allahyarham Dato’ Haji Mohd Ali’s selfless dedication.
MALAYSIAN INTERNATIONAL SHIPPING CORPORATION BERHAD .55 The consolidation of MSE and the introduction of the offshore business will strengthen and grow MISC’s income contribution from the targeted energy sector.
56 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
57 “ world-class committed to providing customer service. building a loyal customer base & strengthening strong & relationships ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
5 2. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . “ ” The global economic recovery raised demand for oil towards the later part of 2003 (Autumn/Winter season).2 1. which contributed to the surge in container shipping demand and higher freight rates.0 (271.5) 27. Besides the growth in LNG demand from the Asia Pacific region. though fragile.466.509. our previously loss-making liner. we positioned ourselves to ride the wave of freight rate recovery. MISC expects higher contribution from the enlarged petroleum shipping business through wider market coverage. chemical shipping business despite firmer demand only saw a slight increase in freight rates due to an overhang in capacity. we completed the acquisition of American Eagle Tankers Inc.6) 40.4 1. we also witnessed strong demand in the Atlantic area. especially in the USA and Spain. cost and operational synergies.5 (169.439. the continued tensions in the Middle East and the SARS outbreak.4 2002/2003 RM Million 1. The economic GROUP PROFIT FROM OPERATIONS 2003/2004 RM Million Shipping 2. strengthened our marketing capabilities and continued to improve our operational efficiencies and cost competitiveness.8) 2.4 47.3 recovery also strengthened global trade. Higher bulk shipping Integrated Liner Logistics Non-Shipping Profit from operations Finance cost Share of Results of Associated Companies Profit before taxation demand.310. Despite heightened security concerns with the war in Iraq. (AET) in July 2003. driven mainly by demand in the power sector.4 (210. Ltd. the world economy started to show signs of recovery especially in the United States and Japan. As a result. MISC benefited from the timing of the acquisition which coincided with the upswing of the shipping market and managed to realize the value of AET as shown in this year’s results.7) 0. and a larger asset pool. Even the Euro zone. resulted in a “dry bulk boom” with a sharp upturn in bulk freight rates throughout the year.58 The financial year ended 31 March 2004 was a record year for the shipping industry after experiencing a difficult period in FY2002/2003.711. coupled with tight bulk shipping capacity and port congestion.326. managed to show positive growth. In line with our focus on the energy sector. The During the year. bulk and chemical shipping business segments achieved a turnaround in their performance. Going forward. which moved freight rates for petroleum tankers higher. FY2003/2004 saw freight rates recovering across the board with some of them at historical highs. driven mainly by China.8 (4.
a significant feature onboard MISC’s vessels.59 Operations Review Financial Year 2003/2004 MISC funnel. .
we delivered Tenaga Empat to the charterer in Algeria after having undergone life extension refurbishment works. These new developments further strengthened our capabilities and broadened our service coverage in line with our strategy of becoming a truly global LNG shipping service provider. Though LNG demand in the traditional Asian markets (Japan. we were successful to charter Tenaga Empat to J&S Cheniere. In response to the additional LNG transportation demand indicated by PETRONAS and other customers. Last year. Brunei to South Korea. During the year. the refurbished Tenaga Satu. MISC also signed shipbuilding contracts for two new 145. to MLNG Tiga Sdn Bhd to start their 20-year time charters. expanded by 10% in 2003 to 123 million metric tonnes. Arising from the high activity in the Atlantic market. namely Puteri Nilam Satu in September 2003 and Puteri Zamrud Satu in January 2004. To support PETRONAS’ LNG trading company. West Australia and Lumut. the longest haul laden voyage ever performed by a Tenaga vessel. USA. Algeria to Marmara. MISC exercised the option for two additional sister vessels with SHI in January 2004. which was on time charter to Gaz de France. Turkey and Cove Point. Right: Loading operations at MLNG Terminal. was fully utilized delivering cargoes from Algeria and Nigeria to South Korea. Tenaga Dua also delivered one MLNG Tiga cargo from Bintulu to Lake Charles. The USA recorded a 129% increase in LNG imports from 4. MISC will continue to be active in the global shipping market looking for opportunities to further enhance our market position and expand our customer base. MISC also made several charter proposals to various potential charterers in the Atlantic region. MISC marked another milestone last year when Puteri Firus. MISC has six new LNG tankers on order to support the growth strategy for our LNG shipping business. Bintulu. LIQUEFIED NATURAL GAS (LNG) SHIPPING BUSINESS Heavy Industries (SHI) in July 2003 upon PETRONAS’ confirmation of their requirement. In the process. Korea and Taiwan) grew by 9% in 2003. On its return voyage.60 Top: The height of a typical 137. MISC received and delivered two more Puteri Satu vessels.000 cbm MISC LNG cargo tank is equivalent to a standard 10-storey building. made possible by its recent refurbishment works. In FY2003/2004. France and USA. was much stronger.0 million metric tonnes in 2003. especially in the USA and Spain. demand growth in the Atlantic market. a London based oil and gas trading company (affiliated to Cheniere Energy of the USA) on a 20-month time charter. It was the first time the three vessels loaded cargoes from a terminal outside of Bintulu further strengthening our capabilities of plying outside traditional boundaries. MISC safely completed 316 deliveries of around 16 million metric tonnes of LNG cargoes through its fleet of 17 LNG tankers. Going forward. Since then. she has made deliveries from Bethioua. Europe and North America. With this exercised option. Global LNG trade.000 cubic metres LNG tankers with Samsung MISC’S LNG SHIPPING ROUTES Cove Point Lake Charles Europe Turkey Algeria to Europe and USA Oman South Korea Taiwan Japan Nigeria to Europe and USA Malaysia Australia MISC Existing Routes MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . ASEAN LNG Trading Company (ALTCO) which allows PETRONAS to penetrate new LNG markets and access new LNG supply sources. USA. the vessel back-hauled a cargo from Oman to Japan. driven mainly by increasing gas demand and declining domestic natural gas resources in gas consuming countries in East Asia.8 million metric tonnes to nearly 11. MISC negotiated and inchartered three LNG tankers for time charter of six to eight months to ALTCO. In February 2004. Puteri Intan and Puteri Nilam Satu delivered cargoes from Karratha.
4% (6) SNTM-Hyproc .4.4% (6) Others .1% Puerto Rico .220.127.116.11% Trinidad .3% USA .8% (13) Golar LNG .9% South Korea.6.5.3% Oman .21.5% (8) ADNOC .0% Libya .6% Australia .1% Nigeria .6.2.4% Belgium .61 GLOBAL LNG FLEET as at 30 June 2004 MAJOR LNG IMPORTERS & EXPORTERS as at 30 June 2004 MISC .4.3% Brunei .5% Turkey . .5% (9) NYK .10% (17) Shell .17.8% Italy .5% (8) Pronav .166 Japan.2% Indonesia.7.6% (10) BGT .0.8% Abu Dhabi .9.14.0% Taiwan .5% (8) Hyundai .4% Spain .0.47.0.5% Importers Exporters Puteri Nilam Satu joined MISC’s fleet as its 16th LNG vessel in September 2003.4% Greece .40% (68) Total . .7.3% Portugal .4.8% (13) MOL .3% Algeria.0.2% Dominican Rep.1.5% USA -8.2.3% Malaysia .4% France .2% Qatar -11.
Initiatives to operationalise Bakkah Shipping Company commenced in February 2004 to develop and realize tanker business opportunities among members of the Organization of Islamic Countries. Currently. In FY2003/2004 through AET. Moving ahead. On 22 July 2003. We also entered into a new lightering COA with ATMI (US subsidiary of Total). The strategic acquisition of AET increased MISC’s Aframax fleet by 29 vessels. the sluggish market made a spectacular comeback with strong freight rates recorded from November 2003 to the end of the financial year. TANKERS SPOT RATES AG-EAST (FY 2003/04) Worldscale 250 214 215 210 207 170 153 130 126 126 90 85 70 0 Source: Clarkson Research Studies Q1 Q3 Aframax VLCC Q2 Q4 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Bottom: The strategic acquisition of AET propelled MISC as the second largest Aframax tanker operator in the world with 39 Aframax vessels. and one time charter contract with PETRONAS. MISC concluded the acquisition of AET from Neptune Orient Line. FY2003/2004 was a busy period for our petroleum shipping business. MISC plans to grow its petroleum fleet further in line with its focus on the energy transportation sector.62 Right: Lightering operations onboard Aframax tanker Eagle Charlotte. However. In October 2003. We successfully renewed time charter contracts for two of our clean petroleum product carriers. The larger fleet provides MISC with the critical mass it requires to better serve its customers globally. Further. Africa and China. a contract of affreightment (COA) with ExxonMobil for one Aframax vessel. India. With the AET acquisition. to explore petroleum shipping business opportunities in Nigeria. and entered into a new voyage COA with FINAVAL to ship orimulsion from Venezuela to Italy. MISC also owns three Very Large Crude Carriers (VLCCs). we secured a one year COA with PETRONAS Trading Corporation (PETCO) to transport fuel oil from Europe to the Far East via a charteredin VLCC. USA. after it took delivery of Bunga Kasturi to service a ten-year time charter with PETRONAS in April 2003. develop strategic joint ventures and alliances. MISC has two new Aframax vessels and six new VLCCs on order. MISC Nigeria Limited. we signed a COA with Bitumenes Orinoco (BITOR) to transport orimulsion from Venezuela for distribution to Asia. PETROLEUM SHIPPING BUSINESS The first half of the year was relatively weak for the petroleum tanker market due to slower demand for oil. propelling MISC to become the second largest Aframax tanker operator in the world with 39 Aframax vessels. and explore new business opportunities in selected markets like Europe. MISC is moving closer to become the leading global energy transporter. With its plans to grow further its global petroleum fleet. MISC formed a joint venture company. The strong tanker demand was evident on the back of increased global oil demand driven by the stronger global economic growth and the onset of Autumn/Winter seasonal demand. On the commercial side.
000 dwt Aframax tankers ordered by MISC.MISC PETROLEUM TANKERS VOLUME OF CRUDE OIL LIFTED (FY 2003/04) Domestic vs Foreign 63 Domestic .64% Foreign .36% Quantity: 13. .5 million metric tonnes Bunga Kelana 8 .the second of a series of four 105.
873 million metric tonnes market environment. To overcome the challenges in the market. We continued to see a shift in supply centers for petrochemical products from Europe to the Middle East/Arabian Gulf. IOI Edible Oils.49% Total Cargo Lifted: 2. MISC CHEMICAL TANKERS CARGO QUANTITY LIFTED FOR FY 2003/04 Vegetable oil vs Chemicals in metric tonnes In addition. marketing efforts were stepped up which has shown results. more efficient scheduling and selective increase of term to spot business. CHEMICAL SHIPPING BUSINESS In FY2003/2004. the demand for chemical shipping was strong driven mainly by China’s growth. Degussa AG. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . During the year. strategies have been put in place to exploit the positive Chemicals . As such. against the backdrop of a better global economic outlook and slower increase in capacity. this resulted in only marginally higher freight rates due to excess capacity in the market. we are confident that freight rates will at least maintain at current levels. a 32. the chemical tanker business returned to profitability. MISC secured time charter contracts for two chemical tankers with Kuok Oil. For the coming year. Bottom: Loading operations onboard an MISC chemical tanker. which adversely affected our Far East–Europe chemical shipping service. However. Reliance Industries and Kaukomarkkinat.64 Right: Bunga Melati Dua.189 dwt chemical tanker at Port Kelang. Iffcochart. We are also studying the opportunity to increase our capacity in order to gain market share in the chemical/vegetable oil market. we secured COAs with Vinmar International. With the marginally stronger freight rate environment coupled with business growth.51% Vegetable Oil .
974 dwt chemical tanker.65 Bunga Mawar. a 29. .
conversions and ship maintenance. We have identified several feasible FPSO/FSO projects in the region. Pasir Gudang. MSE also delivered two major FPSO/FSO conversion projects with a combined value of around RM240 million. which could be converted into FPSO/FSO facilities.66 Top: Bunga Kertas undergoing conversion into an FPSO facility at MSE Shipyard. Johor. which was converted into an FPSO facility by Malaysia Shipyard and Engineering Sdn Bhd (MSE) last year. The main focus for MSE in the next financial year will be on enhancing its competitive edge through higher productivity and technical capabilities. MISC completed the acquisition of an additional 22% of MSE Holdings Sdn Bhd (MSEH). The delivery of the conversion projects marked the success of pooling resources and expertise from MSE’s ship repair. the holding company of MSE. MISC is currently studying opportunities to enhance our presence in the Asian FPSO/FSO market by offering floating oil and gas terminal solutions for deepwater To support this business development initiative. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . This is part of MISC’s strategy to strengthen and grow its heavy engineering business as well as realize the synergistic opportunities within MISC and the PETRONAS Group as a whole. During the year. Right: MISC’s FPSO project team in discussion. Offshore Business In April 2003. MSE plans to undertake high value-added repair activities such as LNG carrier repairs and dry-docking and build up its project management capabilities for FPSO/FSO conversion especially for larger and more sophisticated deepwater projects. MT Bunga Kertas was one of our older petroleum tankers. Heavy Engineering Business In March 2004. making MSEH a 65% subsidiary of MISC. The offshore business provides MISC the opportunity to utilize our older petroleum tankers. Later in the year. With the relevant critical experience and capabilities in place. It also offers synergistic opportunity within the Group as most of the engineering and conversion work could be performed by MSE. which we target to capture a portion. MISC commenced its offshore business with the chartering of a Floating Storage and Offloading (FSO) facility to Murphy Sarawak Oil Company Ltd. With its completion. shipbuilding and engineering divisions to undertake more sophisticated projects. FPSO Bunga Kertas was delivered and deployed in Malaysian waters to begin serving a fifteen-year charter with PETRONAS. MISC marked another milestone with the delivery of our first Floating Production. MISC will focus on strengthening the required technical and commercial capabilities. We have identified a leading global FPSO/FSO player to be our partner in our future business endeavours. thereby extending their useful life. MISC aims to be a major player in the Asian FPSO/FSO market within the next five years. MSE successfully delivered 13 oil and gas engineering projects and repaired 105 ships valued at over RM680 million. MISC will reposition MSE as its heavy engineering arm focused on supporting both upstream oil and gas projects and downstream repair and maintenance projects in addition to traditional businesses of ship repairing. OFFSHORE AND HEAVY ENGINEERING field development. Storage and Offloading (FPSO) facility in March 2004.
67 The completed FPSO Bunga Kertas is currently deployed in Malaysian waters to serve a long term charter with PETRONAS .
G UD BA H AK W RA QT QT QT QT N TA R R R R AN G Europe Australasia Asia 1 2 3 4 .304 12. The vessels will be delivered in FY2006/2007 and will be injected into the Far East-Europe service.3% the previous year.732 7. Liner Logistics TRUNK FREIGHT RATES USD per teu 1000 932 996 987 859 In line with its strategy to focus on the profitable long haul services against the backdrop of an improving global container shipping market. Although the Liner market improved significantly in 2003. Despite these initiatives.68 Right: Bunga Raya Dua. the intensely competitive Intra-Asia market continued to be a difficult market for MISC in 2003. marine insurance and charter hire. shipping lines had to grapple with increasing operating costs including higher costs of fuel. MISC LADEN THRU-PUT (IMPORT/EXPORTS) FOR MALAYSIA IN FY 03/04 TEUS 64. coupled The Liner business experienced a turnaround in FY2003/2004 with the strengthening of global trade. With these increased freight rates. MISC signed 739 51.443 business is positioned to provide total logistics services leveraging on supply chain management tools to meet its customers’ total logistics requirements. The higher container shipping demand enabled shipping lines to implement rate restoration with increases in container liftings and improved cost competitiveness. the Perdana service was also restructured but this service continued to record deficits in FY2003/2004 under a highly competitive environment characterized by many small operators.682 KU AN P. Saudi Arabia.810 2. with the improving Malaysian economy.000 60.82. MISC also continued to rationalize and optimize its Intra-Asia services. rate restoration programmes were implemented for the Far EastEurope services and Australasia services.690 20.405 8.939 817 600 645 shipbuilding contracts for two new post panamax 7. Liner Logistics succeeded in lifting its results into positive territory for these two trade services in FY2003/2004. a 3.900 TEU vessels.080 6.555 Exports .400 32. These posed major challenges to the shipping lines.500 TEU container vessel at Jeddah Port. Demand for container shipping grew by 10.689 14. During the year.4% compared to capacity growth of 7. However.600 400 332 12. In the domestic market. INTEGRATED LINER LOGISTICS BUSINESS MISC’s Integrated Liner Logistics programmes that were positive to their bottom lines.part of MISC’s integrated logistics services aim at providing total logistics solutions for its customers.200 800 696 667 38.988 6. Bottom: Warehousing .800 200 0 0 SA PE NA NG NG MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) P. The strategy to focus on long haul services has also prompted MISC to 431 377 341 25.110.K LA SA Imports .340 19. this Perdana service is expected to turn in better results in the coming year. which had to focus on maximizing cargo yield and minimizing operational costs.
69 Bunga Teratai Empat. . South Africa. a 1.550 TEU container vessel departing Durban for Cape Town.
and pursue partnership/alliances with world-class consulting houses and industry experts to build capabilities within MISC to be a world-class third party logistics service provider. In the light of this competitive environment.525 33. MILS implemented strategies to build its capabilities to be a world-class third party logistics provider. Tenaga Nasional.000 0 Europe Australasia Asia MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) QT R 1 QT R 2 QT R 3 QT R 4 .262 MISC Integrated Logistics Services (MILS) The logistics market in Malaysia continues to be competitive with the entrance of new logistics players especially in the container haulage business. Towards the end of FY2003/2004.097 48.940 65. British American Tobacco.668 64. MILS will continue to remodel its logistics business through the optimization and rationalization of initiatives.70 The warehousing and freight forwarding facilities of MTW have been integrated with the distribution capabilities of MHS to offer clients customised logistics service business solutions. In the same month. MILS expanded its service offerings to include conventional and specialized transportation services. 26. better cost management and favourable freight environment.639 26. as trade liberalisation will continue to attract both local and foreign players who have integrated logistics capabilities.000 61. offering haulage services. which are expected to contribute significantly to the overall future performance of MILS.603 32.907 30.745 48. 49. improved operational efficiencies and carried out cost saving initiatives with the help of the recently implemented Land Logistics computer system.761 52. During the year. Samsung Group of Companies. the landscape for integrated logistics business will become more challenging and competitive. UMW Industries and Sime Tyres to our list of clientele in FY2003/2004.000 48.000 71. we succeeded in adding Yamaha Electronics Manufacturing. will be disposed. Flextronics Industries. MISC expects earnings for the Liner business in FY2004/2005 to remain positive. With the improved service offering. MILS also expanded its operations into Sarawak. which no longer fit into our long haul business strategy. PETRONAS Dagangan.000 Looking towards the future. MISC started its cross-border land logistics business transporting Through MILS’ marketing efforts and extended service offerings.606 66. goods from Malaysia and Singapore to Thailand. MISC LADEN CONTAINER LIFTINGS Teus 80. INTEGRATED LINER LOGISTICS BUSINESS (CONTINUED) review its asset portfolio mix for the Liner business. Some of the smaller and older liner vessels. In August 2003.772 16.
Inland Transportation from port to Distribution Centre & later to customer F . MISC Integrated Logistics Services (MILS) Haulage Consolidation Centre Customs Clearance Customs Clearance Distribution Centre Distribution AIRFREIGHT SEAFREIGHT MISA A B C F D E Suppliers Customers A .Sea / Air Shipment D .Insurance MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .Inland Transportation from plant to cargo Consolidation Centre and later to the port B .71 MISC Integrated Logistics Services (MILS) brings to customers the best customised logistics solutions.Custom Clearance C .Custom Clearance E .
Going forward. MISC successfully concluded several bulk business contracts.127 dwt Panamax bulk carrier at high seas. we identified 15 carriers which were subsequently disposed in April and May 2004. The COA of MV DRY BULK CARRIERS 1 . Freight rates remained strong at very high levels.000 30.000 20. Brazil and China.the major cargo carried by MISC’s dry bulk fleet. doubling in the second half compared to the first half of the year. In addition.72 Top: Bunga Saga 10. lower supply growth of bulk shipping capacity in the market and port congestion in major bulk ports in Australia. In line with our focus on the energy transportation sector and to capitalise on the strength of prices of second-hand bulk ships. MISC signed a Memorandum of Understanding with Crescent Shipping to jointly explore potential business opportunities in India. Right: Coal . In September 2003. they are expected to remain higher for the rest of 2004 than the lows that we saw in 2002. a 73. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) Q1 Q1 04 3/ -0 Q4 04 3/ -0 Q3 04 3/ -0 Q2 4 /0 03 03 Panamax Handymax Handysize Q2 03 Q3 03 Q4 / 02 / 02 / 02 03 / 02 .000 10. the outlook for bulk shipping business remains favourable. Though freight rates have declined from the 40.YEAR TIME CHARTER RATES USD/day 50. BULK SHIPPING BUSINESS Financial year 2003/2004 was an exceptional year for the bulk shipping business as a series of unexpected spikes in the bulk freight rates was witnessed. During the year.000 Pernas Amang with Tenaga Nasional Berhad was extended for another three years commencing September 2003. MISC was awarded a three-year COA by Tenaga Nasional Berhad to carry 1 million tonnes of coal to Janamanjung power station commencing 1 January 2004.000 0 historical highs seen in early 2004. The strong upward movements of the freight rates were driven mainly by strong demand for bulk shipping in China. The continued positive market environment for bulk shipping business provides us with the opportunity to further rationalize the business.
37% Ferrous Ore . Coal . Perak.8% Grain .2% Steel Product .3% Timber .13% Fertilizer .73 MISC BULK CARRIERS AGE PROFILE as at 31 March 2004 TYPE OF CARGO CARRIED BY MISC BULK CARRIERS IN FY 2003 / 2004 0-10 Years .2% Total cargo carried for the year : 14.55% 11-20 Years . Lumut.9 million tonnes .37% 20+ Years .14% Mineral .12% Scrap .6% Sugar .9% Discharging operations onboard Bunga Saga 9 at Lekir Bulk Terminal.3% Steel Product .
alliance management. HUMAN RESOURCE MANAGEMENT (HRM) SERVICES During the financial year. which was aimed to enhance operational efficiency and cost competitiveness. we sponsored 258 Malaysians to pursue the cadetship and rating programmes in ALAM. MISC also organized training programmes to address softer issues such as personal wellness and teambuilding. MISC completed its MISC STAFF STRENGTH as at 31 April 2004 manpower rationalization exercise for executive employees where about 5% or 56 executive employees accepted the Separation Package (SP). The emphasis will be on enhancing capabilities and competencies in the areas of market intelligence.2834 Sea Staff (Officers) . MISC focused on developing. For the coming year. In the past year. These programmes assisted in fostering a spirit of cohesiveness among employees and created a level of awareness for healthy living. business and people skills to produce a pool of quality and effective workforce. ship management and leadership development.2732 organization to support our global growth strategy. MISC’s workforce was enlarged with the acquisition of AET and MSE.2465 Sea Staff (Ratings) . we will focus on building capabilities and leaders within the Shore Staff (Executive) . This number is likely to increase in line with MISC’s growth strategy. Various HR initiatives were successfully implemented particularly the integrated skill and competency development programmes with a balanced mix of technical. During the financial year. To ensure that MISC has a continuous pool of Malaysian officers.1506 Shore Staff (Non-Executive) .74 MISC’s main focus will be on building capabilities and leaders within the organisation to support MISC’s global growth strategy. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . The SP was offered to the executive employees as part of the Group’s Business Transformation and restructuring exercise. This added challenges to the HR function whereby we had to streamline and realign policies and procedures as well as provide change management support to address post acquisition workforce issues. strengthening and optimizing the human resource (HR) infrastructures and capabilities as we believe that investment in human capital has direct impact on our value creation strategy.
MISC SEA STAFF as at 31 April 2004
Sea Staff (Officer) Malaysian - 1236 Sea Staff (Officer) Non - Malaysian - 1229
Sea Staff (Ratings) Malaysian - 1802 Sea Staff (Ratings) Non - Malaysian - 930
Top: Every year, MISC sponsors about 200 school leavers under its cadet sponsorship programme. Right: Akademi Laut Malaysia – dedicated to produce highly qualified graduates in the maritime industry.
MARINE EDUCATION AND TRAINING
Akademi Laut Malaysia (ALAM) will continue to play a pivotal role in supporting the Government’s call to be a maritime nation. During the year, in order to attract
potential cadets, ALAM conducted roadshows, career talks and exhibitions at various schools around Malaysia, resulting in the receipt of 23,000 applications for its Cadet and Rating programmes. To enhance the effectiveness of ALAM’s training programmes, MISC presented MV Pernas Propane to ALAM to be used as a training vessel in May 2003.
ALAM also conducted relevant training programmes (Offshore and Ports) for related maritime industries such as the Royal Malaysian Customs, Marine Police, Institut Perikanan Malaysia, Port of Tanjung Pelepas, Penang Port and Kuantan Port. ALAM also succeeded in securing customers from Brunei and Singapore in line with its plan to expand into the ASEAN region.
For the coming year, ALAM will focus on strengthening and expanding its course offerings to cover the whole spectrum of the maritime sector. The number of courses offered will be increased and special emphasis will be made to ensure the seafarers produced by ALAM are competent and qualified in accordance with the high standards set by the maritime society.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
During the year. we also embarked on a safety campaign towards achieving Zero Accident and Incident to inculcate a safety culture amongst MISC ship personnel. MISC is proud to be the first company in Malaysia to be awarded with the International Ship Security Certificate on 19 January 2004. Johor. In line with our aim of being a cost competitive operator. With that in mind. MISC is confident that the condition and performance of all MISC vessels will be at optimal operating standards at all times to meet MISC’s customer requirements. increase vessel availability and reduce downtime. Pasir Gudang. MISC will implement the revised Shipboard Management System. MISC will ensure that competent and experienced personnel are employed to serve both onboard the vessels and onshore. we were challenged to ensure optimal commercial availability of our vessels without compromising on their operational efficiency. MISC’s strategy to perform planned periodic bulk purchases of store supplies resulted in realizing higher volume discounts and lower processing costs. The enlarged MISC fleet with the acquisition of AET and the deliveries of new vessels in FY2003/2004 added complexity to the way we managed our assets. we embarked on programmes to ensure that all our vessels conform to ship security requirements in response to increased threats of terrorism and piracy. utilize AMOS and adopt “best industry practices” wherever practicable. Other cost reduction initiatives implemented during the year included continuous in-depth studies of vessels’ operational efficiency. Right: Chemical tankers Bunga Semarak (right) and Bunga Mawar (left) undergoing repair works at MSE Shipyard. To ensure MISC’s asset reliability.78 Top: Monitoring discharging operations onboard. MISC commenced International Ship and Port Facility Security Code (ISPS) certification in January 2004 and completed the exercise in May 2004. FLEET MANAGEMENT SERVICES With the buoyant shipping market in FY2003/2004. With the planned completion of AMOS implementation in the coming year. but we were successfully guided and by our strategic theme of “Continuous Cost Competitiveness Asset Reliability”. In the areas of procurement. and optimization of operational manning level and vendor management system. Through these initiatives. Sustained 4 1 1 1 1 1 1 1 1 0 20 04 20 20 05 20 06 07 (AMOS) Planned Preventive and Predictive MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . For the coming year. MISC will be able to better manage its vessels. ahead of the 1 July 2004 deadline. where the cost for steel renewal. blasting and cargo hold repairs were more attractive. we are in the process of implementing the computerised Management Integrated System Asset for AFRAMAX LNG VLCC CONTAINER 2 2 2 2 3 3 5 CONTRACTED VESSELS DELIVERY SCHEDULE Maintenance on MISC vessels. With improved control in managing our assets through AMOS and better safety awareness among MISC seafarers. we moved most of the dry-docking of our bulk vessels to the People’s Republic of China.
Petroleum Tankers .15 Total : 138 Containerships .005.4.1.545 Total : 8.128.395.427 .079 LNG Tankers .17 Petroleum Tankers .605.720 Chemical Tankers .537.36 MISC’s vessels are constantly inspected to ensure their condition and performance are at optimal operating standards.24 Bulk Carriers .074 Containerships .1.79 LIST OF VESSELS BY TYPE / CATEGORY as at 30 June 2004 in dwt NUMBER OF VESSELS BY TYPE / CATEGORY as at 30 June 2004 LNG Tankers .585.46 Chemical Tankers .009 Bulk Carriers .
bulk and LNG shipping businesses will assist the various business units in planning better fleet utilization while focusing on customer service through better chartering and operational efficiencies. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Full completion of the Liner system (Phase 2B) is targeted before the end of 2004. comprising three modules was launched in November 2003. BUSINESS TRANSFORMATION The current Information Technology (IT) phase of our business transformation project is now at its final leg with target completion in FY2004/2005. In FY2003/2004.80 Top: Excellent customer service is one of the key drivers of MISC’s business transformation. we installed the system on board 51 vessels and we are in the process of rolling out the system to the remaining vessels. The AMOS System. Each of the four IT systems implemented will assist MISC’s key business units to be more customer focused and enhance operational efficiencies through the right business processes and controls. making us more customer focused and operationally efficient. chemical. The AMOS System will facilitate total lifecycle maintenance of the vessels from preventive and predictive maintenance onboard to dry-docking of the vessels. MISC will be better positioned in the global marketplace to capitalize on the opportunities presented to create value for its stakeholders. The end-to-end integrated logistics business supported by the underlying Liner and Land Logistics systems will enable MISC to offer Total Supply Chain Management Services to its customers. Phase 2A of the Liner System went live in September 2003. The Non-Liner System that was rolled out for the petroleum. With the completion of the IT projects. Right: Training on the new IT systems is crucial in ensuring their successful implementation. The Non-Liner system went live successfully in October 2003. The Liner and Land Logistics systems will substantially change the way we operate and manage our Integrated Liner Logistics business.
81 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
the asset mix of the business will have to be reviewed to ensure long-term business sustainability. Mohd Ali bin Hj. MISC is poised to grow its targeted energy transportation business particularly in Europe and the Atlantic area (markets west of Suez). During FY2003/2004. the Management wishes to express its gratitude to the Chairman. controlling interest in MSE and emerging offshore business. we would like to register our highest regard and gratitude to Allahyarham Dato’ Hj. thus expanding its service offering and providing seamless logistics service to its targeted customers in the energy and consumer product sectors. MISC will also explore and expand its reach into the Mediterranean. Africa and FSU Kuala Lumpur 24 May 2004 MICHAEL TING SII CHING General Manager Corporate Planning Services Kuala Lumpur 24 May 2004 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . the legacy he left in terms of exceptional commitment. In line with the focus of its Liner business. Appreciation On behalf of Management. MISC will also expand its land logistics assets to strengthen its integrated liner logistics business. Though we miss and grieve the loss of Allahyarham Dato’ Ali. The Management would also like to thank the staff for their commitment and diligence. MISC is positioning itself to realize its vision to become the preferred provider of world-class maritime transportation and logistics services. MISC will also concentrate its effort on transforming MSE to be the premier heavy engineering business in the region and building its offshore business (OBU) into a significant regional player. MISC will continuously monitor their development and strategize its operations accordingly. To this end. With this continuing strategic focus on the energy transportation segment. Right: The Mobile Offshore Application Barge (MOAB) being towed from MSE Shipyard to the offshore installation site for Talisman Malaysia. Americas. FUTURE OUTLOOK The shipping business outlook for the near future appears bright with freight rates projected to remain firm for the coming year. built by MSE. dedication and professionalism will motivate us to continue the excellent work he had done in bringing MISC to its current position as a truly reputable global company. Despite optimism shown in the economy and shipping market. its Agencies and stakeholders for their understanding and support. is the first Made-in-Malaysia drill tender barge with the most modern and latest drilling rig facilities in the world. Yasin for his exemplary leadership and guidance over the past seven years in orchestrating MISC towards becoming the preferred provider of world-class maritime transportation and logistics services. MSE and OBU will focus on servicing the upstream oil and gas sector.82 Top: Tioman T-9. The current strategy of focusing on long haul services for the Liner business has worked well for MISC. AMIR HAMZAH BIN AZIZAN Regional Business Director Europe. Demand for logistics services is expected to be strong in tandem with world economic growth. improving cost competitiveness and emphasis on developing skills and resources. African and Indian markets for the petroleum shipping business capitalising on AET’s strength in the Atlantic Basin. leveraging on PETRONAS Group’s strengths and business network. and our valued clients. a new Regional Business Office headed by a Senior Management team member has been set up in London to drive the growth. the Government. Special emphasis will also be made to grow the LNG shipping business in Europe and the USA beyond the two third party contracts with Gaz de France and J&S Cheniere. Going forward. Board of Directors and Board Audit Committee for their guidance. On behalf of the Management Committee. MISC continued to build a strong platform for growth in the energy logistics sector with its enlarged LNG and petroleum fleets. However. Last but not least.
83 Energy transportation business will continue to be MISC’s focus area of growth. .
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85 “committed to a clean security & safer environment. while maintaining at all times ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
No serious incidents have been recorded in the last financial year. No non-conformities were found during the annual audit. we carry out annual integrated anti hijacking drills with the Royal Malaysian Navy (RMN). Jabatan Laut Malaysia has also successfully audited us under the International Safety Management (ISM) Code requirement. which further facilitates employment of our vessels on Time Charters and Contract of Affreighment. Thus the introduction of the International Ship and Port Facility Security Code (ISPS) in early 2003 was viewed as an opportunity to further improve our process and procedures. The recent drill was onboard the product tanker M. Safety. All our Ship Security Plans (SSP) have been approved by the relevant Recognised Security Organisations (RSO). our HSSE performance has continued to improve. In areas of Security. irrespective of severity. As part of contribution towards national security and to enhance our preventive measures. The organisation has also been proactively monitoring and following up all incidents. The certification onboard all our vessels were completed ahead of the 1 July 2004 deadline. our incident frequency has also improved with a reduction of incidents by nearly 50% over the last two financial years. The Maritime Risk Council has reviewed the various risk identified and has incorporated detailed preventive and recovery measures as part of continual improvement. initiatives and shipboard conformity. Our Total Recordable Case Frequency (TRCF) performance has improved with a reduction of Personal Accidents by nearly 15% from the previous year. Security and Environment (HSSE) performance excellence in all our business undertakings. Security And Environment (HSSE) Report MISC is committed towards achieving Health. MISC has always been in compliance with industry requirements and best practices. Risk Management has been given priority in order to ensure structured approach towards risk identification and mitigation. We have since been accorded with improved management rating. MISC was the first shipowner in Malaysia to be awarded the International Ship Security Certificate (ISSC) when two of our vessels successfully underwent the external certification audit in January 2004.T. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . attesting to our commitment and conformance to’ international safety and environmental requirements. The lessons learnt has been incorporated and actioned upon as part of continual improvement. This commitment has been translated to various process requirement and initiatives which has been rigorously implemented across all Business and Service Units in MISC. In this financial year. We have also launched the Fleet Management Services Safety Campaign with an objective of achieving “Zero Incident Zero Accident”. As a result of sound policy and framework. there have been a number of management reviews carried out by our customers.86 Health. Bunga Kemiri off Lumut and was attended by the Managing Director of MISC and the Fleet Operations Commander of the Royal Malaysian Navy. management commitment. By industry standards. Safety.
This covers self use. suppliers and the public with regard to appropriate matters on Health. Safety and Environment management system and practices to ensure their continual improvement.87 MISC Corporate Policy On HSSE MISC’S CORPORATE POLICY IS TO STRIVE FOR EXCELLENCE IN ALL ITS ACTIVITIES INCLUDING HEALTH. organisation. it is MISC’s policy that all its operations be DRUGS AND ALCOHOL FREE. customers. operates and provides are in accordance with appropriate legal requirements. All employees and contractors of MISC are required to comply with this policy. SAFETY AND ENVIRONMENT MATTERS. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . MISC shall also ensure that contingency plans are in place and maintained to deal with emergencies and shall periodically review the Health. sale. MISC shall also take proactive steps towards the conservation and preservation of the environment. health hazards and damage to properties. To achieve these objectives. MISC shall ensure that the facilities and services it designs. Safety and Environment. builds. MISC is committed to give priority to Health. manufacture. MISC shall provide the necessary resources. Safety and Environment wherever MISC operates and shall endeavour to take every reasonable and practicable step to prevent and eliminate the risk of injuries. MISC shall comply to the requirements of local legislation and industry codes of practice wherever such legislation and codes exist. and Environment. possession and distribution of drugs and alcohol at work. contractors. industry standards and best practices. and can be a threat to Health. Safety. Drugs And Alcohol As the use of drugs and alcohol can impair performance at work. In handling any drugs or alcohol related problem. system and training and shall communicate with employees.
A major boost for MISC in its drive to become transport the leading global the energy provider. the largest Malaysian flagged vessel to-date. MISC donated one of its vessels. Ltd (AET). 17 April 2003 realising its goal of becoming the premier energy-based shipping company in the world. Korea as part of its continuous growth strategy and strengthening of market position. to Akademi Laut Malaysia (ALAM) to be used as ALAM’s second training vessel. This move forms part of MISC’s planned expansion into the petroleum tanker services business and brings the Corporation closer towards Recognising its role in the training and development of professional seafarers. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .999 dwt Very Large Crude Carrier (VLCC).88 Corporate Highlights Of The Year 29 April 2003 14 April 2003 4 April 2003 10 May 2003 17 April 2003 4 April 2003 MISC took delivery of its first 299. marking MISC’s foray into the VLCC market. Bunga Kasturi replaced the inchartered VLCC. Bunga Kasturi. MT Sakura. to service a long term charter with PETRONAS. 29 April 2003 History was created when MISC signed a Stock Purchase Agreement (SPA) with Neptune Orient Lines (NOL) for the acquisition of a 100% interest in American Eagle Tankers Inc. 10 May 2003 A second Very Large Crude Carrier (VLCC) was ordered from Universal Shipbuilding Corporation. a petroleum tanker company wholly-owned by NOL. strategic acquisition of AET will open up new geographical presence for MISC in the Atlantic Basin complementing its existing Arabian Gulf-Far East market. Pernas Propane. Ltd. Japan.. 14 April 2003 MISC placed orders for two LNG tankers and two Aframax crude oil tankers from Samsung Heavy Industries Co.
A final dividend of 15 sen was declared and approved during the AGM. The new CSI service provides customers with better port pairs. with J & S Cheniere S. (AET) from Neptune Orient Lines. ICCO.. Kaohsiung. held their bi-annual meeting in Malaysia for the first time since their inception twenty years ago. MISC benefited from the timing of the acquisition to coincide with the upswing of the shipping market and managed to realize the value of AET as shown in this year’s results. 2003/2004 at 30 sen matches the highest total dividend that was declared in the previous financial year. Busan.Dalian. 5 July 2003 MISC and its partners in The Grand Alliance started an additional China Europe Loop with the following port rotation on a weekly frequency . Hamburg. Ltd. 18 September 2003 MISC consolidated its Straits India Pakistan (SIP) and China Straits Service (CSS) services into a single China Straits India (CSI ) service with joint partnership with PIL & K-Line. Kaohsiung. further strengthening its stable and strong earnings from the LNG business. or commonly known as the Box Club. Port Ningbo. Korea. a result of MISC’s aggressive marketing efforts and competitive pricing structure in LNG transportation opportunities presented by the strong growth in world LNG demand. Qingdao. 15 August 2003 MISC signed its second 3rd party time charter agreement outside the Petronas Group for LNG vessel. 22 July 2003 Completion of the acquisition of American Eagle Tankers Inc.89 4 July 2003 15 August 2003 7 July 2003 22 August 2003 17 September 2003 18 September 2003 4 July 2003 MISC secured two 20-year time charter party contracts with MLNG Sdn Bhd for the two LNG carriers built at Samsung Heavy Industries. Gioia Tauro. Singapore. 17 September 2003 MISC hosted a dinner in conjunction with the International Council of Containership Operators (ICCO) Meeting held in Kuala Lumpur.100 mt Very Large Crude Carrier (VLCC) with Universal Shipbuilding Corporation.A. 7 July 2003 MISC’s 34th Annual General Meeting and Extraordinary General Meeting were held. Singapore. The total dividend per share for the financial year MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Tenaga Empat. Rotterdam. coverage and transit times. Klang. 22 August 2003 MISC signed an agreement for the construction of its third 298. Busan and Dalian. Xingang. Southampton.
Tan Sri Dato’ Seri Dr. was converted into a FPSO at Malaysia Shipyard & Engineering Sdn Bhd (MSE). MT Bunga Kertas. YBhg Puan Sri Datin Seri Norhainy Hj. Puteri Nilam Satu at Mitsubishi Heavy Industries Shipyard in Nagasaki. Datin Laila Alias. Japan. named the vessel which is the third of the Puteri Satu series LNG tankers. Mohd Ali bin Hj. Puteri Zamrud Satu. The naming ceremony was held at Mitsui Engineering & Shipbuilding Shipyard in Chiba. A total of 450 persons involved in the maritime industry worldwide attended the Conference. wife of Board Member. The addition of these two crude oil tankers. YBhg.90 Corporate Highlights Of The Year (continued) 12 January 2004 6 October 2003 14 January 2004 14 November 2003 19 September 2003 19 September 2003 Naming ceremony of MISC’s 16th LNG tanker. Datin Sri Ursula Teo. Dato Sri Liang Kim Bang named MISC’s 17th LNG tanker.The Corporation’s position as the largest single LNG fleet owner and operator in the world is further reaffirmed. Storage and Offloading (FPSO) facility which will serve a long-term charter with PETRONAS Carigali. Omar. each with a capacity of more than 105. 6 October 2003 MISC was the main sponsor for the 2nd Asia Maritime & Logistics Conference 2003 organised by Malaysian Shipowners’ Association (MASA) at Nikko Hotel Kuala Lumpur. representing about 10 percent of the total world LNG capacity. YBhg. Zainul Ariff Hj Hussain named the vessels Bunga Kelana 7 and Bunga Kelana 8. wife of Allahyarham Dato’ Hj. 14 November 2003 MISC marked another milestone with the delivery of its first Floating Production. YBhg. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Hj. Yasin. wife of Board Member. one of our older petroleum tankers.500mt into MISC’s petroleum fleet further strengthens MISC’s position as the second largest Aframax fleet owner-operator in the world.91 million cubic metres. The addition of Puteri Zamrud Satu increased MISC’s total gross LNG capacity to 1. Japan. 12 January 2004 Naming ceremony of MISC’s first two Aframax crude oil tankers built by Samsung Heavy Industries. 14 January 2004 YBhg.
900 TEU containerships from Daewoo Shipbuilding & Marine Engineering Co. Malaysia Rating Corporation reaffirmed ratings of MISC’s RM1. (MSE). The issuance totalled USD1.000 m3 LNG tankers with Samsung Heavy Indusries Co. 16 April 2004 MISC exercised its option of ordering another two 145. Bhd. 15 handysizes and 1 multipurpose carrier. The briefing is part of the Group’s Corporate Governance practice that enabled investors and analysts to have latest information on the strategy. Ltd. 3 March 2004 13 May 2004 MISC took advantage of the recent increase in secondhand value of bulk vessels by divesting 15 of its older handysize bulk vessels.91 21 January 2004 27 February 2004 February 2004 16 April 2004 13 May 2004 19 January 2004 MISC became the first shipowner in Malaysia to be awarded the International Ship Security Certificate (ISSC) when two of our vessels successfully underwent the external certification audit. 17 March 2004 MISC acquired an additional 22% interest in MSE Holdings Sdn.5billion Murabahah commercial paper/medium term notes issuance facility (2000/2005) at MARC 11D/AAA ID. 2 July 2004 MISC successfully completed its inaugural USD bond issue. 9 handymaxes. Ltd. recognises excellent vessels from the viewpoint of the pilots for the purpose of elevating a sense of awareness to protect ports and maritime environment through safe cargo operations. was awarded “Excellent Vessel” by Japanese Pilot Association (JPA) in recognition of the vessel’s well upkeeping and excellent maintenance. SS Aman Bintulu received the Award for vessels calling at Kyushu district ports. performance and major developments of MISC. MISC’s dry bulk fleet consists of 36 vessels with 11 panamaxes. With the sale of these vessels. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . established by JPA. Aman Bintulu. MISC ordered two 7. February 2004 MISC LNG vessel. The certification onboard all our vessels were completed ahead of the 1 July 2004 deadline.1 billion consisting of a USD400 million 5-year tranche and a USD700 million 10-year tranche. 21 January 2004 27 February 2004 Briefing to Analysts and Investors on MISC’s Group Third-Quarter Results was held. making it a 65% subsidiary. 11 June 2004 Moody’s Investors Services upgraded MISC’s Issuer rating to “Baa1” from “Baa2” and assigned a “Baa1” rating to MISC’s proposed USD1 billion senior unsecured notes. Standard & Poor’s Rating Services assigned a “BBB+” rating to MISC’s proposed USD1 billion senior unsecured notes. The company will be MISC’s heavy engineering arm focussing on the energy business. The Award.
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93 to “committedthecontributing towards development of the nation. industry&society ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
The Road to ‘Malaysianisation’ MISC has actively participated in ALAM with the interest of creating a brighter future for youths while creating employment opportunities in the maritime industry – taking the industry and the country to greater heights by having its vessels manned entirely by Malaysians. The Group’s efforts on this front began with the establishment of the Seamen’s Training School in Malacca. the Cadet Sponsorship Programme was realised – an idea that would eventually provide vast opportunities for the Malaysian maritime industry in terms of knowledge. For the last 30 years. MISC’s heavy engineering business through its subsidiary. hence putting Malaysia on the map in terms of training and developing the next generation of mariners. MISC is committed to contributing to Malaysia's progress as a maritime nation with the development of competent seafarers. MISC takes its commitment to Corporate Social Responsibility (CSR) seriously. in collaboration with the Government in 1972. Marine Engineering was introduced in ALAM. experience and employment. more than 200 students are recruited yearly for the Cadet Sponsorship Programme. Ultimately. Today. Presently. MISC has embraced the role of training and developing skilled manpower in the maritime and heavy engineering industry. the school was upgraded to a Maritime Training Centre. ALAM is 70% owned by MISC and 30% by PETRONAS. Commitment to Investing in the Youth – the Nation's Future MISC spends more than RM16 million annually for the full programme at ALAM. and has focused on the area of youth development. South Tyneside College (United Kingdom) and Politeknik Ungku Omar. Now. What better way than to promote and enhance the skills of our youth and put the country at par with other great maritime nations. development and employment ground for young aspirants. we want to improve the quality of life for all Malaysians. This policy of ‘Malaysianisation’ is what MISC aspires to develop and prioritise in its training and development initiatives. has not only contributed to the Group as a premier provider of services in Malaysia’s oil and gas industry. the creation of employment opportunities and achieving Malaysianisation of our workforce. These investments are geared towards facilitating a learning. the company has taken in some 3. Malaysia Shipyard and Engineering (MSE).The company is mindful of its social obligations. Since 1972. maritime and logistics organisations nationwide also seek the services of those trained in ALAM. Building this pool of skilled manpower is important as it reduces the domestic maritime industry’s reliance on foreign manpower and expertise. but also an environment to put this knowledge to use. With this. especially in the areas of training and development. In addition. which subsequently in 1981 led to the set up of Akademi Laut Malaysia (ALAM) as the training ground for deck cadets up to the level of Master. As the engine of growth propelling Malaysia’s development as a leading maritime nation. “ ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . which enables the training of specialized engineers domestically. simultaneously providing employment opportunities for our youth. Two years later. but also become an essential training ground for heavy engineering in the country. MISC is committed to training the next generation of mariners and seafarers not just for the Group’s advantage but also to the benefit of other seafaring industries in the country. Our Contribution to the Nation – Growing our Youth in the Maritime Industry MISC believes that it is important to be a loyal partner to the nation’s development and progress. In 1975. improving the lives and harnessing the potentials of Malaysian Youth.94 Corporate Social Responsibility As a corporate entity. MISC realises fully the importance of socially responsible practices. while setting an example for other companies and industries.200 deck and engine cadets. providing not just technical know-how.
MISC also contributed to various orphanages. Responsibility to the Maritime Industry As an active member of the Malaysian Shipowners’ Association (MASA) and the main sponsor of the annual Asia Maritime and Logistics Conference. Corporate Social Responsibility is not just a social obligation. MISC has achieved 77% Malaysian Officers and Ratings working onboard Malaysian vessels. which is a major boost to the large number of Malaysians working onboard the vessels. Officers. considering that expatriates wholly managed all vessels when MISC embarked on the LNG service in 1980s. MISC is now proud to be the largest single owner-operator of LNG fleet in the world. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . the expenditure on invisible trade is reduced while boosting national revenues through foreign exchange earnings. enriching the community and contributing to nation-building. Therefore. Engineers and Ratings. considering the opportunities presented to them by the strong growth in world LNG demand for the future. To-date. Other Contributions As part of the Group’s continuing corporate social responsibility commitment. while the figure is substantially higher at 90% for the Liquefied Natural Gas (LNG) Fleet. This is especially remarkable. At MISC. but also a way of life. The successful development of Malaysian seafarers together with the development of Malaysian-owned vessels has greatly reduced the nation’s dependence on foreign seafarers and foreign shipping services respectively. charity homes and other nonprofit organisations as well as business and maritime associations and institutions of higher learning.Malaysians have outnumbered expatriates in all categories from Master. MISC integrates social concerns with business operations on a voluntary basis.
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97 “committed to harnessing team spirit & cohesiveness amongst our dedicated & developing leaders professionals ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
employee development programmes are put in place to complement the company’s global growth strategy. but also bring staff closer together in sharing a sense of achievement outside of work.98 Staff Development & Welfare: Sustaining An Integrated Workforce MISC has always considered employees to be the primary asset of the company. In advocating the overall development of our workforce. such as PETRONITA. These activities not only promote a healthy lifestyle amongst MISC employees. MISC’s Education Assistance Plan is also extended to staff undertaking courses to enhance their work. MISC Mini Sports Carnival. a women’s organisation for female employees and wives of male employees at MISC that is aimed at promoting togetherness and the exchange of valuable ideas. Training & Development Training programmes at MISC have played an important role in the Unity among employees are enhanced through staff organisations. Health and Recreational. classes in English. Programmes that provide a balanced mix – Education. both locally and internationally. education as well as employee unity. teambuilding and personal wellness programmes are also included to inculcate a spirit of unity among employees and create greater awareness towards healthy living. registration and examination fees are provided for. In order to equip employees with additional skills and to help position the company globally. These classes better prepare employees for overseas postings and ensure improved communication between businesses. We constantly focus on developing our Human Resources framework to provide our people with valuable resources and avenues for growth. as well as participation in state-level sporting leagues. Education. and Staff Recognition – are all exercised to build an integrated workforce and to realise these objectives. “ ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Thereafter. Sports and recreational activities are carried out to promote wellness and healthy living among employees. MISC encourages the involvement of employees in major sporting activities through its sports club and annual events such as the World Maritime Day Sports. PETRONAS Sports Carnival. Japanese and Mandarin have also been introduced. Committed to Increasing Performance The Performance Management System (PMS) is an appraisal system where the superior and subordinate agree at the beginning of the year on what needs to be accomplished. a structured career development programme is executed to provide a phase-by-phase training module. where all tuition.Training and Development. PMS is complimented by Job Analysis Competency Development that assesses staff competency and identify gaps. development of our employees through sports. In line with MISC’s objectives of building a capable workforce and fostering leadership qualities within the organisation.
MISC believes in recognising the efforts from employees. made a significant and positive difference in the company. as well as those retiring from the company. company. The system has indeed helped employees identify their potential and career development. training and development. as they have in some way or the other. contributed tremendously As the engine of growth. awards are given to employees who have been committed and dedicated to MISC for more than 20 years. assessing employees’ strengths and enhancing their capabilities provide a complete package that forms an integrated workforce. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .99 This contributes towards the company’s planning process to identify and develop the potential next-in-line management team. Recognition Not forgetting those who to have the An integrated workforce for a better future MISC believes that the elements of education. employees of MISC are recognised as people we invest in for a better future.
14 June 2003 Management Committee members and some members of Petronita and Badan Islam MISC (BIM) visited Asrama Damai. An award presentation ceremony was held for MISC’s most outstanding cadets for the year. Batu Caves Division One of the Selangor Football League and achieved 6th placing out of 42 teams. This programme was one of the many held during the year to build team spirit among employees within the Group. 9 . 12 – 15 June 2003 2 July 2003 A teambuilding programme was held for Managers and Executives at Allson Klana Resort. 23 June 2003 MISC contributed 30 used Personal Computers Selayang. MISC sponsors more than 200 cadets under its Cadet Sponsorship Programme. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Our hockey team emerged champions.September 2003 MISC football team participated in 15 – 21 June 2003 An orientation training programme was held for new Executives to give them a better perspective of MISC and the maritime industry. Selangor. an orphanage home in Kuang. May . MISC achieved third placing. Negeri Sembilan.100 Employees Activities For The Year 14 June 2003 May – July 2003 April . Every year.July 2003 MISC hockey team participated in the 2003 KL Hockey League. to Sekolah Menengah Kebangsaan Ideal Heights.September 2003 23 June 2003 12 – 15 June 2003 2 July 2003 April .13 July 2003 MISC participated in various games held in conjunction with PETRONAS Sports Carnival.
16 August 2003 The ‘Pursuit of Wellness’ programme was held at Awana Resort. a charity run organised by Bursa Malaysia Berhad together with The Edge.9 – 13 July 2003 7 November 2003 25 July 2003 12 December 2003 12 November 2003 12 August 2003 17 January 2004 25 July 2003 Majlis Tilawah Quran MISC.16 October 2003 A Pre-Retirement Workshop was held for employees who were about to retire and their wives to help them prepare for retirement. 25 and 20 years award from MISC Chairman. Yasin. 17 January 2004 A Long Service Award Presentation was held at Mandarin Oriental Hotel. It was one of the many health awareness programmes organised throughout the year to encourage staff to maintain a healthy and productive lifestyle. 12 August 2003 Five senior management personnel 13 . an orphanage home. 12 December 2003 A Retirement Award Presentation was represented MISC in the ‘KLSE Rat Race’. YBhg. Eight employees received their retirement award from Allahyarham Dato’ Hj. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Tan Sri Dato Sri Hassan bin Marican and Management Committee members were at hand to receive guests which included 40 children from Darul Kifayah. held at Mutiara Hotel Kuala Lumpur.12 October 2003 MISC took part in several sports events organised by the Marine Department. 14 . Port Klang in conjunction with World Maritime Day 2003. 12 November 2003 About 350 guests and staff attended the Annual Majlis Berbuka Puasa at Labuan Hall. Tan Sri Dato Sri Mohd Hassan bin Marican.15 October 2003 A training programme on ‘Coaching for Managing Performance’ was conducted for several Managers and Executives on how to expand their employee’s ability to produce extraordinary results and become better leaders. YBhg. Mohd Ali Hj. 7 November 2003 PETRONITA’s Charity Curtain & Bedroom Soft Furnishing Making Competition was held. a Quran reading competition was held for MISC Muslim employees. Genting Highlands. 1 . A total of 54 employees received their 30. MISC Chairman. 14 . Menara Dayabumi.
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discipline & reporting to cultivate strong investor confidence ” MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .103 “ committed to proper financialmanagement.
104 Financial Statements Directors’ Report Statement By Directors Statutory Declaration Report Of The Auditors Income Statements Balance Sheets Statements Of Changes In Equity Cash Flow Statements Notes To The Financial Statements 105 109 110 111 112 113 114 115 116 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
987 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . the results of the operations of the Group and of the Corporation during the financial year were not affected by any item.237. RESULTS Group RM’000 Profit after taxation Minority interests Net profit for the year 2.633 – 1. DIVIDENDS The amount of dividends paid by the Corporation since 31 March 2003 were as follows: RM’000 In respect of the financial year ended 31 March 2003 as reported in the directors' report of that year: Final tax exempt dividend of 15 sen per share.277 (29.319. Bhd. There have been no significant changes in the nature of these activities during the financial year other than the Group is now involved in shipbuilding. paid on 26 August 2003 278. paid on 30 December 2003 278. The principal activities of the subsidiaries are described in Note 38 to the financial statements. transaction or event of a material and unusual nature.105 Directors’ Report For The Financial Year Ended 31 March 2004 The directors are pleased to present their report together with the audited financial statements of the Group and of the Corporation for the financial year ended 31 March 2004. In the opinion of the directors. group.633 There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the statements of changes in equity. ship repairing and heavy engineering works arising from additional acquisition of 22% equity interest in MSE Holdings Sdn.987 In respect of the financial year ended 31 March 2004: Interim tax exempt dividend of 15 sen per share.289. ship operating and other activities related to shipping services.706) 2. PRINCIPAL ACTIVITIES The principal activities of the Corporation consist of shipowning.237.571 Corporation RM’000 1.
913. or with a company in which he has a substantial financial interest.987 Special tax exempt dividend of 10 sen per share on 1. Since the end of the previous financial year. will be accounted for in shareholders' equity as an appropriation of retained profits in the financial year ending 31 March 2005. if approved by the shareholders.859. the following tax exempt dividends will be proposed for shareholders' approval in respect of the financial year ended 31 March 2004: RM’000 Final tax exempt dividend of 15 sen per share on 1. 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 Sri Liang Kim Bang Dato' Seri Dr. Zainul Ariff bin Hj. no director has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directors as shown in Note 6 to the financial statements or the fixed salary of a full-time employee of the Corporation) by reason of a contract made by the Corporation or a related corporation with the director or with a firm of which he is a member.859. Hussain Mr. Menon Dato' Halipah binti Esa (appointed on 26 April 2004) Dato' Hj. Harry K.991 The financial statements for the current financial year do not reflect these proposed dividends. Yasin (demised on 19 April 2004) Datuk Siti Hadzar binti Mohd Ismail (resigned on 25 February 2004) Dato' Hamzah bin Bakar (resigned on 7 July 2003) DIRECTORS’ BENEFITS Neither at the end of the financial year. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . nor at any time during that year. Hj.913. whereby the directors might acquire benefits by means of acquisition of shares in or debentures of the Corporation or any other body corporate. Such dividends.793 ordinary shares 185. Mohd Ali bin Hj. did there subsist any arrangement to which the Corporation was a party.106 Directors’ Report (continued) DIVIDENDS (CONTINUED) At the forthcoming Annual General Meeting.793 ordinary shares 278.
000 5.000 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 1.107 DIRECTORS’ INTERESTS According to the register of directors’ shareholdings. 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.000 – – 152. 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 1 April 2003 The Corporation Direct Dato Sri Liang Kim Bang Indirect Dato Sri Liang Kim Bang Bought Sold 31 March 2004 152.000 68. (ii) MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . OTHER STATUTORY INFORMATION (a) Before the income statements and balance sheets of the Group and of the Corporation were made out.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.000 – – 5.000 – – 68. and to ensure that any current assets which were unlikely to realise their values 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.000 – – 1.
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. the directors are not aware of any circumstances which would render: (i) (ii) (c) the amount written off for bad debts or the amount of the provision for doubtful debts inadequate to any substantial extent. ZAINUL ARIFF BIN HJ. At the date of this report. Ernst & Young. AUDITORS The auditors. have expressed their willingness to continue in office. 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. (ii) SIGNIFICANT EVENTS The significant events during the financial year are disclosed in Note 40 to the financial statements.108 Directors’ Report (continued) OTHER STATUTORY INFORMATION (CONTINUED) (b) At the date of this report. and the values attributed to the current assets in the financial statements of the Group and of the Corporation misleading. or any contingent liability of the Group or of the Corporation which has arisen since the end of the financial year. and no item. At the date of this report. Signed on behalf of the Board in accordance with a resolution of the directors. TAN SRI DATO SRI MOHD HASSAN BIN MARICAN Kuala Lumpur. Malaysia Date: 24 May 2004 DATO’ SERI DR. HJ. 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. (d) (e) (ii) (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. there does not exist: (i) any charge on the assets of the Group and of the Corporation which has arisen since the end of the financial year which secures the liabilities of any other person. As at the date of this report. HUSSAIN MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
Malaysia Date: 24 May 2004 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . ZAINUL ARIFF BIN HJ. 1965 so as to give a true and fair view of the financial position of the Group and of the Corporation as at 31 March 2004 and of the results and the cash flows of the Group and of the Corporation for the year then ended. HUSSAIN. the accompanying financial statements set out on pages 112 to 177 are drawn up in accordance with applicable Approved Accounting Standards in Malaysia and the provisions of the Companies Act.109 Statement By Directors Pursuant To Section 169(15) Of The Companies Act. HUSSAIN Kuala Lumpur. HJ. Signed on behalf of the Board in accordance with a resolution of the directors TAN SRI DATO SRI MOHD HASSAN BIN MARICAN DATO’ SERI DR. HJ. being two of the directors of Malaysia International Shipping Corporation Berhad. TAN SRI DATO SRI MOHD HASSAN BIN MARICAN and DATO' SERI DR. ZAINUL ARIFF BIN HJ. 1965 We. do hereby state that in the opinion of the directors.
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. NORAINI BINTI CHE DAN. Subscribed and solemnly declared by the abovenamed NORAINI BINTI CHE DAN at Kuala Lumpur in Wilayah Persekutuan on 24 May 2004 Before me: HARON HASHIM Commissioner for Oaths MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .110 Statutory Declaration Pursuant To Section 169(16) Of The Companies Act. 1965 I. being the officer primarily responsible for the financial management of Malaysia International Shipping Corporation Berhad. do solemnly and sincerely declare that the accompanying financial statements set out on pages 112 to 177 are in my opinion correct.
Our responsibility is to express an opinion on these financial statements based on our audit. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. being financial statements that have been included in the consolidated financial statements. as indicated in Note 38 to the financial statements. ERNST & YOUNG AF: 0039 Chartered Accountants Kuala Lumpur. on a test basis. These financial statements are the responsibility of the Corporation’s directors. An audit includes examining. as well as evaluating the overall presentation of the financial statements. In our opinion: (a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act. 1965 and applicable Approved Accounting Standards in Malaysia so as to give a true and fair view of: (i) the financial position of the Group and of the Corporation as at 31 March 2004 and of the results and the cash flows of the Group and of the Corporation for the year then ended. did not include any comment required to be made under Section 174(3) of the Act. evidence supporting the amounts and disclosures in the financial statements. We have considered the financial statements and the auditors' reports thereon of the subsidiaries of which we have not acted as auditors. and (ii) (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 believe that our audit provides a reasonable basis for our opinion. 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.111 Report Of The Auditors To The Members Of Malaysia International Shipping Corporation Berhad (Incorporated In Malaysia) We have audited the accompanying financial statements set out on pages 112 to 177. 1210/05/06(J) Partner MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . An audit also includes assessing the accounting principles used and significant estimates made by the directors. 1965 to be dealt with in the financial statements. and the matters required by Section 169 of the Companies Act. The auditors' reports on the financial statements of the subsidiaries were not subject to any qualification material to the consolidated financial statements and in respect of subsidiaries incorporated in Malaysia. Malaysia Date: 24 May 2004 HABIBAH BTE ABDUL No. We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia.
149) – 1.273.518 (169.289.633 – 1.508.550 63.122.310 – 1.326.420 (210.856) 1.890 940.127) 2.340 (3.807 (3.708) 906.493) 27.509.706) 2.241.439.981) 1.271 (4.310.404 (7.477 2.633 3.581 ) 40.382) – 1.310 – 1.5 The accompanying notes form an integral part of the financial statements.246 ) 1.571 2003 RM’000 5.237.112 Income Statements For The Year Ended 31 March 2004 Group Note 2004 RM’000 7.924.200.633 – 1.749 (545.144) 1.237.996 (3.484 490.824) 4 7 2.200.606.215.244) 1.310.319.310 Revenue Cost of sales Gross profit Other operating income General and administrative expenses Profit from operations Finance costs Share of results of associated companies Profit before taxation Taxation Profit after taxation Minority interests Net profit for the year 3 8 Basic earnings per share (sen) 9 123.237.015 (35.507 1.1 70.694 (676.313.483.822.598 (2.663 Corporation 2004 2003 RM’000 RM’000 4.200.363 1.098.915.721) 3.813 (606.314.194 (432.300 3. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .015 60.277 (29.432.459 (41.663) 1.
449 – – 9.273 – 51.870 2. deposits and bank balances 16 17 18 19 21 22 33.230 27 28 1.423.660 5.159 9.991 2.695 245.859.859.859.000 1.914 460.235.110.029.513 9.671 1.541 333.722 9.882 99.823 813 – 535.198 667.882 35.451.273.144 10. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .914 460.000 3.814 2.914 460.792.882 38.101 287.481 81.486 1.932.690 901.700 NET CURRENT (LIABILITIES)/ASSETS (3.808 14.812 1.449 – – 8.882 96.611.204.319 – 13.320 75.859.002 11.789 – 486.230 49.186 CURRENT LIABILITIES Due to group companies Due to associated companies Provision for taxation Payables and accruals Short term borrowings 23 24 25 26 105.010 3.200.106 1.000 – 9.043 2.719.189.762 11.715 479.532.791 251.082.914 460.960 57.278.052 1.652 1.419 4.804.850.924 – 51.208.135) 11.147 3.504.899 2.852.284 421.479 81.247 1.853.586 3.172 10.896 8.603 1.911.166.160 1.172.211 600.983 2.925 11.399 1.770 6.432 1.254 975.921 61.185 – 1.101 400.611.242.048 1.711 2.975.850.484 128.432 497.122.849 19.527 5.236 6.436 17.213.921 7.148.719.814 CAPITAL AND RESERVES Share capital Share premium Other reserves Retained profits SHAREHOLDERS' FUNDS MINORITY INTERESTS NON-CURRENT LIABILITIES Long term borrowings Deferred taxation 26 29 4.777 – 134.847 819.230 – 102.968 17.637 345.802 7.735 2.020 5.922.804.304 382.503 2.067 1.931.095.705 5.766 – 334.618.351.889 119.862 236.113 Balance Sheets As At 31 March 2004 Group Note NON-CURRENT ASSETS Ships Property and equipment Subsidiaries Associated companies Other investments Intangible assets Deferred tax assets 11 11 12 13 14 15 29 16.328 CURRENT ASSETS Due from group companies Due from associated companies Inventories Receivables Marketable securities Cash.932.747.538 1.295 15.217 7.951 1.745 5.514) 15.846 304.675.644.233.704 10.932.202 (1.345 236.719.099.993 8.071 2004 RM’000 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 The accompanying notes form an integral part of the financial statements.502 381.889 400.382.
571 (3.882 86.649) – 99.289.882 – – 460.384 – 4.921 – (3.914 28 28 – – – – – 1.882 – – – – – 460.802 96.320 9.931.172.921 – – 38.974) 10.230 9.882 460.532.230 1.002 Total RM’000 8.859.859.859.310 (557.185 10 10 * Included in share capital is one preference share of RM1 (2003: RM1). MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .633 (3.513 7.571 – (557.513 1.237.882 460.320 5.916 4.384 1.886 – – 96.618.974 ) 8.317 6.177 1.894 1.523 1.530.618.535 – (5.882 38.633 – (557.802 18.104.22.1689.247 4.172.914 – – – 1.859.914 460.722 – (1.889.914 28 28 – – – – 28 10 – – 1.502 ) 1.974) 9.310 (557.882 – – – – – – 460.859.172 8.523 22.214.171.1244 1.649 ) (557.704) – 35.974 ) 7.859.993 Distributable Retained Profits RM’000 6.453.317) 2.974 ) 7.532.384 5.114 Statements Of Changes In Equity For The Year Ended 31 March 2004 Share Capital* Ordinary Shares RM’000 1.921 38.704 ) (557. The accompanying notes form an integral part of the financial statements.317) (1.502 9.289.840 – (3.914 – – 1.200.722 7.663 (557.791 At 1 April 2002 Currency translation differences Transfer to reserves from retained profits Net gain not recognised in income statement Net profit for the year Dividends At 31 March 2003 At 1 April 2003 Currency translation differences Transfer to reserves from retained profits Net gain not recognised in income statement Net profit for the year Deferred tax liabilities recognised on revaluation reserve Dividends At 31 March 2004 10 Corporation At 1 April 2002 Net profit for the year Dividends At 31 March 2003 At 1 April 2003 Net profit for the year Deferred tax liabilities recognised on revaluation reserve Dividends At 31 March 2004 1.502) (5.310.523 – 5.859.882 – – – 460.914 Group Note Non-distributable Share Other Premium Reserves RM’000 RM’000 460.217 6.663 (557.310.914 1.974 ) 7.237.974) 9.852.974) 11.351.861.
902 (1.018.659.586 2003 RM’000 5.350) 31.981 6.781 – 1.853.243 1.471.093.870 3.419 (2.471.870 245.711 (10.853.040 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 investing activities Net cash generated from/(used in) financing activities Net increase/(decrease) 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.330 129.518.355.827) 2.170) (1.362 1.870 – 497.573) (1.040 The accompanying notes form an integral part of the financial statements.670) 2.069.585 (2.902 – 2.288 1.851.683) 2.427 1.638) 1.738) 2.781 (1.225.586 1.018.056 828.040 3.367.117. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .019.841 (5.857 (4.991 235.326) 2. deposits and bank balances (Note 22) Bank overdraft (Note 26) 30 31 1.750.981 497.671) 235.225 (1.119.298) (644.243 ) 1.052 (3.117.148.018.359.761 103.115 Cash Flow Statements For The Year Ended 31 March 2004 Group Note 2004 RM’000 7.790 (3.029.671 ) 1.586 – 1.155.514.449.515 (3.994 497.753.866.853.836 235.797 3.493) 258.658) 2.445.748.981 Corporation 2004 2003 RM’000 RM’000 5.652 (10.
023 (2003: 4. CORPORATE INFORMATION The principal activities of the Corporation consist of shipowning. Bhd.780 (2003: 6. There have been no significant changes in the nature of these activities during the financial year other than the Group is now involved in shipbuilding. The Corporation is a public limited liability company. 1965 and applicable Approved Accounting Standards in Malaysia. The holding and ultimate holding company of the Corporation is Petroliam Nasional Berhad. ship repairing and heavy engineering works arising from additional acquisition of 22% equity interest in MSE Holdings Sdn.472) respectively. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Preparation The financial statements of the Group and of the Corporation have been prepared under the historical cost convention unless otherwise indicated in the accounting policies below. incorporated and domiciled in Malaysia. Menara Dayabumi. 2. group. and is listed on the Main Board of Bursa Malaysia Securities Berhad. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .659) and 4. The financial statements comply with the provisions of the Companies Act. During the financial year ended 31 March 2004. The principal activities of the subsidiaries are described in Note 38. The number of employees in the Group and in the Corporation at the end of the financial year were 8. The registered office of the Corporation is located at Level 25. a company incorporated and domiciled in Malaysia. the Group and the Corporation adopted the following Malaysian Accounting Standards Board (“MASB”) Standards for the first time: MASB 25 Income Taxes MASB 27 Borrowing Costs MASB 29 Employee Benefits The adoption of these MASBs have not given rise to any adjustments to the opening balances of retained profits of the prior and current year or to any material changes in comparatives. Jalan Sultan Hishamuddin. ship operating and other activities related to shipping services. 50050 Kuala Lumpur.116 Notes To The Financial Statements 31 March 2004 1. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors on 24 May 2004.
Subsidiaries are consolidated using the acquisition method of accounting except for the acquisition of subsidiaries which meet the criteria for merger. The results of the companies being merged are included as if the merger had been effected throughout the current and previous financial years. Subsidiaries are deconsolidated from the effective date of any circumstances or events giving rise to the cessation of control over their financial and operating policies. the results of subsidiaries acquired or disposed during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal. The assets and liabilities of a subsidiary are measured at their fair values at the date of acquisition and these values are reflected in the consolidated balance sheet. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b) Basis of Consolidation (i) Subsidiaries The consolidated financial statements include the financial statements of the Corporation and all its subsidiaries. Where an indication of impairment exists. as appropriate. Intragroup transactions. When the merger method is used. 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. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Subsidiaries are those companies in which the Group has a long term equity interest and where it has power to exercise control over the financial and operating policies so as to obtain benefits therefrom. The difference between the cost of an acquisition over the fair value of the Group’s share of the net assets of the acquired subsidiary at the date of acquisition is included in the consolidated balance sheet as goodwill or reserve arising on consolidation and is amortised or credited to income statement on a straight line basis over 5 to 20 years. in which case such acquisitions are accounted for using merger accounting principles. Minority interest is measured at the minorities' share of the post acquisition fair values of the identifiable assets and liabilities of the acquiree. Under the acquisition method. The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group’s share of its net assets together with any unamortised balance of goodwill and exchange differences which were not previously recognised in the consolidated income statement. the carrying value of goodwill is written down immediately to its recoverable amount.117 2. balances and resulting unrealised gains are eliminated on consolidation and the consolidated financial statements reflect external transactions only.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b) Basis of Consolidation (continued) (ii) Associated Companies Associated companies are those companies in which the Group has a long term equity interest and is in a position to exercise significant influence. whichever is shorter. the Group's share of post acquisition profits less losses of associated companies during the year is included in the consolidated income statement. Unrealised losses are eliminated unless cost cannot be recovered. (d) Investments in Subsidiaries and Associated Companies Investments in subsidiaries and associated companies are stated at cost less impairment losses. the fair value of the charter hire contract is reduced by this amount. Where the aggregate of the fair values of separable net assets of the subsidiaries exceeds the fair value of purchase consideration. Goodwill or reserve arising on acquisition of associated companies is amortised or credited to the income statement on a straight line basis over 5 years or its estimated useful life. the difference between net disposal proceeds and their carrying amounts is recognised in the income statement. Significant influence is the power to participate in the financial and operating policy decisions of the associated companies but not control over those policies. Under the equity method of accounting. Other intangible assets are amortised on a straight line basis over the remaining period of the respective charters ranging from 15 to 20 years or the estimated remaining useful lives of the vessels concerned. Where an indication of impairment exists. the carrying value of goodwill is written down immediately to its recoverable amount. whichever is shorter. (c) Other Intangible Assets Other intangible assets represent the consideration paid in respect of charter hire contracts of subsidiaries at the date of acquisition and are stated at the fair values of the charter hire contracts based on valuations performed by independent professional valuers. the carrying value of investment is written down immediately to its recoverable value. the carrying value of intangible assets is written down immediately to its recoverable amount. On disposal of such investments. Where an indication of impairment exists. The Group's interest in associated companies is carried in the consolidated balance sheet at cost plus the Group's share of post-acquisition retained profits or accumulated losses and other reserves as well as goodwill on acquisition. Investments in associated companies are accounted for in the consolidated financial statements by the equity method of accounting based on the audited or management financial statements of the associated companies.118 Notes To The Financial Statements (continued) 2. Unrealised gains on transactions between the Group and the associated companies are eliminated to the extent of the Group’s interest in the associated companies. Where an indication of impairment exists. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
33. Depreciation of ships in operation is provided on a straight line basis to write off the cost of each ship to its residual value over its estimated useful life. fittings and equipment Computer software and hardware Trailers and prime movers Plant and machinery Tugboats.15% 20% . Property and Equipment and Depreciation Ship. these assets continue to be stated at their original valuation less accumulated depreciation and impairment losses. Plant and Equipment.20% 2% . property and equipment are stated at cost less accumulated depreciation and impairment losses.3% 8% . Depreciation of ships under construction commences from the date of delivery of the ships. Depreciation of ship.20% 6. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (e) Ship. Leasehold land is depreciated on a straight line basis over the period of the respective leases which range from 15 to 99 years.3% 15% . Freehold land. property or equipment. ships under construction.119 2.7% .10% 20% 12. Where an indication of impairment exists. property 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 at the following annual rates: Ships constructed Ships purchased Buildings Containers Motor vehicles Furniture.20% 10% .3% 10% .50% Freehold land and building of the Corporation have not been revalued since they were revalued in 1984. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . The directors have not adopted a policy of regular revaluations of such assets. engines and pushers Drydocks and waste plant Loose tools Lightering and warehouse equipment 20 years Remaining useful life 2% . Upon the disposal of an item of ship.33. As permitted under the transitional provisions of IAS 16 (Revised): Property. systems work in progress and construction in progress are not depreciated.33.3% 10% . the difference between the net disposal proceeds and the carrying amount is charged or credited to the income statement.5% . the carrying value of the asset is assessed and written down immediately to its recoverable amount.
(g) Cash and Cash Equivalents For the purposes of the cash flow statements. Any surplus provision will be written back at the end of the warranty period while additional provision is made as necessary. lubricants. net of outstanding bank overdraft. With effect from the current financial year. spares. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. the Group changed its accounting policy on spares by capitalising as inventories and charging to income statement as and when used.120 Notes To The Financial Statements (continued) 2. Where the effect of the time value of money is material. (i) Provisions for Liabilities Provisions for liabilities 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. cash and cash equivalents include cash on hand and at bank. Provision for warranty is set up based on service histories to cover the estimated liability that may arise during the warranty period. the Group recognised the cost incurred on spares to the income statements. The change in accounting policy has been applied to current and future years as the effect to the opening balances of retained profits of the Group and the Corporation for the prior and current year cannot be reasonably determined. Cost is arrived at on the weighted average basis and comprises the purchase price and other direct charges. (h) Operating Lease Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. the amount of a provision is the present value of the expenditure expected to be required to settle the obligation. Operating lease expenses are recognised in the income statement on a straight-line basis over the lease term. deposits at call and short term highly liquid investments which have an insignificant risk of changes in value. raw materials and consumable stores are held for own consumption and are stated at the lower of cost and net realisable value. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (f) Inventories Inventories which comprise bunkers. In prior years.
Deferred tax is recognised in the income statement. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Income Tax Income tax on the profit or loss for the year comprises current and deferred tax. in which case the deferred tax is included in the resulting goodwill or negative goodwill. 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 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. based on tax rates that have been enacted or substantively enacted at the balance sheet date. (l) Employee Benefits (i) Short term benefits Wages. unused tax losses and unused tax credits can be utilised. In principle. Prior to the adoption of MASB 25: Income Taxes on 1 April 2003. or when it arises from a business combination that is an acquisition. salaries. bonuses. on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts in the financial statements. This change in accounting policy has not given rise to any adjustments to the opening balance of retained profits of the prior and current year or to changes in comparatives. (k) Dry Docking Expenditure Dry docking expenditure is recognised in the income statement as and when incurred. 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. using the liability method. commission and social security contributions are recognised as an expense in the year in which the associated services are rendered by employees of the Group. and short term non-accumulating compensated absences such as sick leave are recognised when the absences occur. Deferred tax is provided for.121 2. deferred tax was provided for using the liability method in respect of significant timing differences and deferred tax assets were not recognised unless there was reasonable expectation of their realisation. 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. except when it arises from a transaction which is recognised directly in equity. in which case the deferred tax is also charged or credited directly in equity. deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . 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. affects neither accounting profit nor taxable profit.
(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. The details of the scheme are disclosed in Note 36. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Some of the Group's foreign subsidiaries make contributions to their respective countries' statutory pension schemes. (iv) Other shipping related income Revenue from services rendered is recognised net of service taxes and discounts as and when the services are performed. Contributions in respect of defined contribution schemes are recognised in the income statement when they are payable to PETRONAS Retirement Benefit Fund for eligible employees. (m) Revenue Recognition Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the enterprise and the amount of the revenue can be measured reliably. (iii) Termination benefits The Group pays termination benefits in cases of termination of employment within the framework of a separation scheme. 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. (ii) Charter income The results of ships employed and voyage charter and that of other services rendered by the Group are accounted for on a time accrual basis. companies in Malaysia make contribution to the state pension scheme. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (l) Employee Benefits (continued) (ii) Defined contribution plan As required by law. Termination benefits are recognised as a liability and an expense on accrued basis.122 Notes To The Financial Statements (continued) 2. Such contributions are recognised as an expense in the income statement as incurred. (iii) Lightering income Income on lightering charges is recognised on percentage of completion of voyages calculated on a discharge-to-discharge basis. the Employees Provident Fund ("EPF").
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. When costs incurred on construction contracts plus recognised profits (less recognised losses) exceeds progress billings. When progress billings exceed costs incurred plus recognised profits (less recognised losses). (vi) Dividend income Dividend income is recognised when the shareholders' right to receive payment is established. the balance is shown as amount due from customers on contracts.123 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (m) Revenue Recognition (continued) (v) Construction contracts Where the outcome of a construction contract can be estimated reliably. Contract costs are recognised as expenses in the period in which they are incurred. Non-monetary items which are carried at historical cost are translated using the historical rate as of the date of acquisition and non-monetary items which are carried at fair value are translated using the exchange rate that existed when the values were determined. foreign currency monetary items are translated into Ringgit Malaysia at exchange rates ruling at that date. 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. All exchange rate differences are taken to the income statement. When it is probable that total contract costs will exceed total contract revenue. At each balance sheet date. the balance is shown as amount due to customers on contracts. (n) Foreign Currencies (i) Foreign currency transactions Transactions in foreign currencies are converted into Ringgit Malaysia at rates of exchange ruling at the date of the transaction. the expected loss is recognised as an expense immediately. 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 estimated reliably.
The financial risk management objectives and policies are disclosed in Note 37.20 2003 RM 3. the difference between net disposal proceeds and its carrying amount is recognised in the income statement. Distributions to holders of financial instruments classified as equity are charged directly to equity.44 2. 3.124 Notes To The Financial Statements (continued) 2. are reported as expense or income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the Group and translated at the exchange rate ruling at the date of the transaction.08 2. 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. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (n) Foreign Currencies (continued) (ii) Foreign entities Financial statements of foreign consolidated subsidiaries are translated at year end exchange rates with respect to assets and liabilities. (p) Other Investments Other investments are stated at cost less provision for any permanent diminution in value. dividends. The principal exchange rates for every unit of foreign currency ruling at balance sheet date used are as follows: 2004 RM United States Dollar Sterling Pound Australian Dollar EURO Japanese Yen Singapore Dollar (o) Financial Instruments Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instrument.80 6.19 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .25 4.47 0.64 4. such translation differences are recognised in the income statement as part of the gain or loss on disposal. Interest. and at average exchange rates with respect to the income statement.80 6.03 2. On disposal of the foreign entity.09 0. All resulting translation differences are taken to the currency translation differences reserve in shareholders’ equity.03 2. gains and losses relating to a financial instrument classified as a liability. On disposal of an investment. Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual agreement.
Dividends on ordinary shares are recognised in equity in the period in which they are declared. (s) Payables Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services received. (u) Non-Convertible Cumulative Redeemable Preference Shares ("NCRPS") NCRPS are classified as long term liability in the balance sheet and the related dividends are recognised in the income statement as interest expense in the period in which they are incurred. determined on an aggregate portfolio basis by category of investments. Increases or decreases in the carrying amount of marketable securities are recognised in the income statement. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . All other borrowing costs are recognised in the income statement as an expense in the period in which they are incurred. property and equipment under construction are capitalised until the assets are ready for their intended use. (t) Interest-Bearing Borrowings and Borrowing Costs Interest-bearing bank loans and overdraft are recorded at the face value of loan amount. (v) Equity Instruments Ordinary shares are classified as equity. Borrowing costs comprise debts issuance costs and interest costs. the difference between net disposal proceeds and the carrying amount is recognised in the income statement. Borrowing costs related to ship. Cost is determined on the weighted average basis while market value is determined based on quoted market values. Bad debts are written off when identified. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (q) Marketable Securities Marketable securities are carried at the lower of cost and market value. An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date. Amount receivable and payable with the same party are offset when they are permissable under the ordinary course of business. On disposal of marketable securities.125 2. (r) Receivables Trade and other receivables are carried at anticipated realisable values.
546 4.271 2003 RM’000 1.625.155.094. All other exchange gains and losses relating to hedge instruments are recognised in the income statement in the same financial year as the exchange differences on the underlying hedged items.089.694 3. Bhd.822.970 5.340 1.162 5.996 Corporation 2004 2003 RM’000 RM’000 2.427 3.162 2.332 280. Exchange gains and losses arising on contracts entered into as hedges of anticipated future transactions are deferred until the date of such transaction..115 7.526. REVENUE Revenue of the Group and of the Corporation consists of the following: Group 2004 RM’000 Freight income Charter and lightering income Other shipping related income 2.606.314.094.084.598 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (w) Derivative Financial Instruments Derivative financial instruments are not recognised in the financial statements on inception.632 135. (y) Charter Hire Expenses Charter hire expenses are recognised in the income statement as incurred.994 356. Interest rate swap contracts Net differentials in interest receipts and payments arising from interest rate swap contracts are recognised as interest income or expense over the period of the contract. Forward foreign exchange contracts Subsequent to the acquisition of MSE Holdings Sdn.625. Major renewals and improvements are capitalised. the Group was involved in foreign currency forward contracts to protect the Group from movements in exchange rates by establishing the rate at which a foreign currency asset or liability will be settled.126 Notes To The Financial Statements (continued) 2. 3. Gains and losses on contracts which are no longer designated as hedges are included in the income statement.477 107. at which time they are included in the measurement of such transactions. (x) Repairs and Maintenance Repairs and maintenance costs are recognised in the income statement as incurred.432.694 2.
888 65.Statutory audits .934 1.677 8.Written off .799 50.266 604.Other services .205 76.821 419.214 – – 265 6.829 – – 209.773 1.445 1.848 1.218 410.720 493.Other services Operating lease rental Rental of land and buildings Rental of equipment Amortisation of intangible assets Impairment loss in goodwill Waiver of amount due from a subsidiary Fees payable to ultimate holding company for services of a director Provision for: .Other auditors . PROFIT FROM OPERATIONS Profit from operations is stated: Group 2004 RM’000 After charging: Charter hire expense Inventories used Ship.708 660.021 – 900 14.253 136.Doubtful debts.934 – 339.307 39.311 503.841 410.Depreciation .000 – – – MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .Diminution in value of unquoted investments Bad debts written off Inventories written off 651.740 – 466.932 123.743 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 679 201 733 160 201 15.881 96.577 127.402 252 609 – 294 191 – – – 10.713 1. property and equipment: .Impairment loss Staff costs (Note 5) Dry docking expense Auditors' remuneration .740 80.038 900.821 385. net .Statutory audits .437 575.127 4.760 – – – 265 – – – 177 210 56 – – – 10.Auditors of the Corporation .866 93.000 900 8.126.391 – 325.856 72 916 184 563 56 377 85 153 14.496 1.919 553.
638 1.335 322 761 – 182 – 28.221 325.744 1.453.000) and RM322.000 (2003: RM1.647 4.368 10.549.247 1.440 339.Subsidiaries .041 503.444 – 44.874 10.424 4.Deposits Rental income from: .986 6.162 8.058 3.Others Net exchange gains: .471 420.639 – 1.414 51.458 – 5.740 Included in staff costs of the Group and of the Corporation are executive directors' remuneration amounting to RM1.724 5.773 4.888 6.054 5.Subsidiaries . PROFIT FROM OPERATIONS (CONTINUED) Group 2004 RM’000 And crediting: Dividends receivable (gross): .685 1.862 18.000 (2003: RMNil) respectively as further disclosed in Note 6.948 466. STAFF COSTS Group 2004 RM’000 Wages and salaries Bonus Termination benefits Social security costs Pension costs: .128 Notes To The Financial Statements (continued) 4.Subsidiaries (unquoted) .492 7.599 3.Unrealised 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 – 8.180 6.931 1.Other unquoted investments Gain on disposal of property and equipment Gain on disposal of investment in associated company Gain on disposal of marketable securities Interest income from: .582 7.739 431 257.765 Corporation 2004 2003 RM’000 RM’000 268.512 244 15.257 4.141 2.384 5.253 5. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .085 64.759 913 – 3.606 – 51.407 7.205 14.Realised .388 – 3.471 5.556 – 20.859 745 2.640 6.Contribution to PETRONAS Retirement Benefit Fund Other staff related expenses 393.974 7.004 – 279 – 162 10.261 21.Quoted in/outside Malaysia .935 11.378 – 3.154 444 3.027 874.732 2003 RM’000 364.Employees Provident Fund and other statutory pension schemes .
000 .453 – 223 1.795 631 295 The number of directors of the Corporation whose total remuneration during the year fell within the following bands is analysed below: Number of Directors 2004 2003 Executive director: RM350.000 Non-Executive directors: RM1 . DIRECTORS’ REMUNERATION Group 2004 RM’000 Directors of the Corporation Executive: Salaries and other emoluments Fees Benefits-in-kind 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 322 47 19 388 – – – – 322 47 19 388 – – – – Non-Executive: Fees Other Directors Executive: Salaries and other emoluments Fees Benefits-in-kind 262 295 262 295 1.000 1 – 4 2 4 2 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .000 RM51.227 7 – 1.234 1.114 47 2.RM400.RM50.129 6.001 .018 – 650 – 295 Total (excluding benefits-in-kind) 2.RM100.676 – – – – – – – – Non-Executive: Fees Total 230 2.095 1.
Notes To The Financial Statements (continued)
FINANCE COSTS Group 2004 RM’000 Interest expense Islamic Private Debt Securities Non-convertible cumulative redeemable preference share dividend 172,698 35,382 2,413 210,493 2003 RM’000 123,570 40,816 5,195 169,581 Corporation 2004 2003 RM’000 RM’000 – 35,382 – 35,382 333 40,816 – 41,149
TAXATION Group 2004 RM’000 Taxation for the financial year comprises the following charge/(credit): In Malaysia Income tax - current year - Charge - Credit Income tax - under provision in prior years Transfer (to)/from deferred taxation (Note 29) Outside Malaysia Income tax - current year Income tax - under provision in prior years Transfer to deferred taxation (Note 29) 2003 RM’000 Corporation 2004 2003 RM’000 RM’000
15,148 (10,349) 586 (3,163)
3,124 (16,722) 318 531
– – – –
– – – –
1,903 183 (86) 4,222
1,704 223 (109) (10,931)
– – – –
– – – –
Share of taxation of associated companies: In Malaysia Income tax - current year Outside Malaysia Income tax - current year
273 2,905 7,127
(958) 7,424 (3,507)
– – –
– – –
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
TAXATION (CONTINUED) 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 2004 RM’000 Profit before taxation Taxation at Malaysian statutory tax rate of 28% (2003: 28%) 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: - Depreciation and amortisation - Waiver of due from a subsidiary - Other expenses Tax losses not allowable for future utilisation Utilisation of previously unrecognised tax losses and capital allowances Deferred tax assets recognised during the year Deferred tax assets not recognised during the year Income tax underprovided in prior years Taxation for the year 2,326,404 651,393 29,337 (1,079,059) (5,546) 314,561 – 57,981 21,683 (12,067) (4,031) 32,106 769 7,127 2003 RM’000 1,310,300 366,884 (1,115) (687,722) (18,486) 249,273 – 40,187 19,697 (11,224 ) (150) 38,608 541 (3,507) Corporation 2004 2003 RM’000 RM’000 1,237,633 346,537 – (429,516) (117,813) 151,432 – 32,922 – (7,900) – 24,338 – – 1,200,310 336,087 – (360,939) (246,559) 159,698 58,520 24,371 – (7,557) – 36,379 – –
Tax exempt shipping income are derived from the operations of the Group's sea-going Malaysian registered ships under Section 54A of the Malaysian Income Tax Act, 1967 and ships registered outside Malaysia under tax jurisdictions of other countries. The Corporation has sufficient tax exempt income to frank the payment of dividend out of its entire retained profits as at 31 March 2004, subject to agreement with Inland Revenue Board. 9. EARNINGS PER SHARE Basic earnings per share is calculated by dividing the net profit for the year by the weighted average number of ordinary shares in issue during the financial year. Group 2004 Net profit for the year (RM'000) Weighted average number of ordinary shares in issue ('000) Basic earnings per share (sen) 2,289,571 1,859,914 123.1 2003 1,310,663 1,859,914 70.5
Diluted earnings per share are not presented as there were no potential dilutive ordinary shares outstanding as at 31 March 2004.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
Notes To The Financial Statements (continued)
10. DIVIDENDS Amount 2004 RM’000 In respect of financial year: 31 March 2003 Final tax exempt dividend of 15 sen per share 31 March 2004 Interim tax exempt dividend of 15 sen per share 2003 RM’000 Net Dividend per Share 2004 2003 Sen Sen
At the forthcoming Annual General Meeting, the following tax exempt dividends will be proposed for shareholders' approval in respect of the financial year ended 31 March 2004: RM’000 Final tax exempt dividend of 15 sen per share on 1,859,913,793 ordinary shares 278,987
Special tax exempt dividend of 10 sen per share on 1,859,913,793 ordinary shares
The financial statements for the current financial year do not reflect these proposed dividends. Such dividends, if approved by the shareholders, will be accounted for in shareholders' equity as an appropriation of retained profits in the financial year ending 31 March 2005.
MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H)
fittings and equipment Computer software and hardware Systems work in progress Trailers and prime movers Plant and machinery Tugboats.083 – – 223.289 2.622 38.192.503) – – – – 605 – – 1.455 71.204 – – – 18 803 539 – – 328 – 3.3.905 15.723.480 – 390.460 180.769 1.888 54.583 390.727 25.830.459 167.346.769 819.136 902.519 15.305 70.900 – 283.620 242.296 69.915.078 – 901.066) (1.851 – 8.526 1.812 17.4.699 12.192 88.123 1.265 57. PROPERTY AND EQUIPMENT Assets of subsidiary acquired RM’000 Disposals and write-offs RM’000 Currency translation differences RM’000 Group .569 4.352) 1.880 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Drydocks and waste plant Containers Motor vehicles Furniture.31 March 2004 Ships At cost: Ships in operation Ships under construction At 1.153 2.239 70.944.909 1.706.651.488 18.116 10.458) – – – – – – – – (32) 8.793 1.362 4.535.875 17. engines and pushers 22.538.880 11.412) – – – – 23. SHIP.960 78.082 (6.066 3.601 – – – 475 1.133 11.699 – – – – – – – – – – 22.888 49.851 254.027 3.535 (8.352) – (6.083 168.300 23.346.837 – – – – – – (29.412 (1.014 4.683 – – 3.535 87.307) (218) (457) – (101) (309) – (31.774 294.300 23.654 116.662 78.585 4.2003 RM’000 Additions RM’000 Transfers RM’000 At 31.2004 RM’000 16.497 14.260 – 3.856 10.837 – 104.797.600 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .441.842 133.
050 – 101.801 15.925 – – – (457 ) – 439 – 67.047 54.074 14.643 – 53. engines and pushers 159.408 17.31 March 2004 Ships At cost: Ships in operation Ships under construction 6.474 30.887 164.427 895.134 Notes To The Financial Statements (continued) 11.4.950 – 7.440 – 991 286 2.710 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Drydocks and waste plant Containers Motor vehicles Furniture.219 1.782.333 6.648 15.073.191 – 10.698 40.190 14.002 87.867 – 230.533 – 66.311 (4.012 – – – – – – – – – – – – – – (29.676 11. PROPERTY AND EQUIPMENT (CONTINUED) Accumulated depreciation at 1.010 ) (1.3.459 138.2003 Group .342 901.192.783 3.2004 RM’000 Net book value at 31.665 5.058 288.344 – 1.452 – – – 474 – – – – – – – 10. SHIP.825 77.903.765 40.940.363 ) – 286 – 1.460 12.447 – 518.901 32.934 19.357 – 152.082 28.418 ) – (4.843 4.690 RM’000 Assets of subsidiary acquired RM’000 Depreciation charge for the year RM’000 Impairment losses RM’000 Disposals and write-offs RM’000 Currency translation differences RM’000 Accumulated depreciation at 31.219 – 1.2004 RM’000 Plant and machinery Tugboats.3.622 3.815 – 7.170 – 1.427 353. fittings and equipment Computer software and hardware Systems work in progress Trailers and p rime movers 49.300 12.873 – (209 ) 633 43.658 – 20.345 1.954 35.307 ) – – – 524 – – – 5 – 28.190 – 8.648 1.710 – 6.963 2.823 15.277 – – – – (71 ) (309 ) – (31.940.795 164.037 2.727 16.950 221.975.773 966.368 1.924 – 20.311 – 1.903.282 – 16.368 – 966.926 22.418 ) – – – 8.033 1.341 3.777 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .829 9.073.525 101.027 14.
828 88.31 March 2003 Ships At cost: Ships in operation Ships under construction At 1.819.414 – – – 4.888 43.804 16.346.585 4.808 248.056 37.812 17. PROPERTY AND EQUIPMENT (CONTINUED) Assets of subsidiary acquired RM’000 Disposals and write-offs RM’000 Currency translation differences RM’000 Group .671 (1.784) – – – – – – – – 54.715 13.766 – 712 – 274 92 37.488 18.553 4.4.526 1.327 12.905 15.459.123 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . fittings and equipment Computer software and hardware Systems work in progress Trailers and prime movers Plant and machinery 22.974 49.875 17.706.296 69.882 1.233) – – – 16.654 116.283.904) (46.697 169.391) (752) (1.135 11.900 283.888 49.122) – – – 364 – – 943 – – 24 541 408 – – 4. SHIP.078 901.2002 RM’000 Additions RM’000 Transfers RM’000 At 31.699 – – – – – – – – – – 22.300 23.530.899 – 4.699 11.047 6.913) (462) (87) (429 ) (1.122 (54.224 – – 3.339 69.192 88.400 – – – – – (2.101 9.083 168.144 10.2003 RM’000 15.494 34.831 92.014 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.3.740 – – 213 488 1.651.300 23.973 1.564 6.750) (7.945 415 738 12.237.856 10.849 800.561 – – – 1.944.877.588 1.686 – – – 359.
2003 RM’000 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .582 – – – (46.924 12.903.3.238 50.099.028 5.032 9.2003 RM’000 Net book value at 31.747.040.531 17.233 ) – (46.099. PROPERTY AND EQUIPMENT (CONTINUED) Accumulated depreciation at 1.362 13. fittings and equipment Computer software and hardware Systems work in progress Trailers and prime movers Plant and machinery 39.816 1.033 53.233 ) – – – 6.369 5.488 11.881 237 585 (79) – 458 12.083 8.452 22.234 7.131 (91) – (677) (1.903.554 3.766 10.244 981 – 9.909) (358 ) – – – – – – – – – – 515 – – – – 7.247 – – – 850.361 – 6.304 RM’000 Assets of subsidiary acquired RM’000 Depreciation charge for the year RM’000 Disposals and write-offs RM’000 Transfers RM’000 Currency translation differences RM’000 Accumulated depreciation at 31.341 3.137 1.31 March 2003 Ships At cost: Ships in operation Ships under construction 6.484 – 8.456 14.801 15.648 15.136 Notes To The Financial Statements (continued) 11.730 – – – 481 – – 131 – 989 286 1.313 – 152.361 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.472 25.696 421 – – – – – (2.860) – – – – – 329 – – 4.192 81.2002 Group .3.240 33.978 – – – 474 – – – – – – – 10.582 – 850.746) (5.710 – 6.330 49.357 67.053 466.4.344 – 159.395 207.631 382.633 3.572 – 6.867 230.082 3.300 13.706.983 7.447 518.829 9.495 54.349 1.710 10.724 309 – – 874 2. SHIP.622 3.
928 83.888 29.463 952.137 1.256 876.553 72.065 ) (508 ) – – – (29.251 87.3.091 1.589.2004 RM’000 10.964.712.190 283.927 12.401) 9. fittings and equipment Computer software and hardware Systems work in progress 22.183 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture. SHIP.585 2.350.193 59.699 – – – – – – 22.554 (6.033 1.959 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .911 ) (8.578 – – – – – (29.981 398.690 280.4.460 660.553 72.455) – 11.300 23.612 – 3.520 4.137 11.355 – – – – 614 – 2.244.472 78.880 85.503) (10.804 254.690 17.213 10.888 29.573) – – – – – – – 13 (1. PROPERTY AND EQUIPMENT (CONTINUED) Disposals and write-offs RM’000 Corporation 31 March 2004 Ships At cost: Ships in operation Ships under construction At 1.193 59.455 (355.699 9.291 11.352) 355.300 23.941 85.352) – (6.083 615.2003 RM’000 Additions RM’000 Transfers RM’000 At 31.213 10.
2004 RM’000 RM’000 Net book value at 31.943 17.232 65 41.3.679 1.719.138 Notes To The Financial Statements (continued) 11.019 – 310.546 – 5.580 46.418) – (4.927 6.700 3.135 540.735 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .333.346 631 35 10. PROPERTY AND EQUIPMENT (CONTINUED) Accumulated depreciation at 1.546 5. fittings and equipment Computer software and hardware Systems work in progress – 10.500 87.782 1.751 – 315.418) – – – 5.008) (508) – – – (29.841 2.135 – 5.773 – 5.710 876.905 1.157 11.452 – 34.842.829 (4.188 20. SHIP.513 6.983 126.96.36.1999 221.613 12.2004 RM’000 Corporation 31 March 2004 Ships At cost: Ships in operation Ships under construction 5.2003 RM’000 Depreciation charge for the year RM’000 Disposals and write-offs RM’000 Accumulated depreciation at Transfers 31.852 – 717 297 456 1.869.300 12.829 34.341 1.460 345.876 43.926 22.333.516) – – – – – – – 12 (720 ) – (708 ) – 6.869.641 230.637 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.648 11.596 – – – – – (29.224 9.553 65.829 – 540.975 32.452 – 474 – – – – – 10.945 11.
553 71.815.512) – – – – – – – – 37.497) 10.139 11.625 356.821 1.300 23.291 11.964 1. SHIP.391 ) (4.888 29.553 72.804 11.166 34.229 – 712 – – – 37.185.769 37.193 59.922 34.913) (208) – – (1.213 10.300 23.981 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.699 – – – – – – 22.553 1.585 2.190 248.4.709.3.287.005 – – – – – (2.699 9.899 85.945 277 6 11.928 83.355 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .033 1.530.190 283.244.690 280.223 (2.716. PROPERTY AND EQUIPMENT (CONTINUED) Disposals and write-offs RM’000 Corporation 31 March 2003 Ships At cost: Ships in operation Ships under construction At 1. fittings and equipment Computer software and hardware Systems work in progress 22.853 – – – 422.501 10.964.2002 RM’000 Additions RM’000 Transfers RM’000 At 31.720) (2.646 1.690 17.122) (16.459.193 59.755 (54.207 1.2003 RM’000 10.697 551.888 29.367) 9.083 615.
852 9.575 – 34.350 – 570.460 207.247 – 5.911.2003 RM’000 RM’000 Net book value at 31.135 5.553 66.083 304.117) – – – – – – – – – – – – 5.244 251 99 49.823 – 170.140 Notes To The Financial Statements (continued) 11.983 3.935 1.591.157 11.333.962 – 4.333.591.498 – – – – – (2.291 5.444 – 279.341 1.641 230.549 53.3.452 22.135 – 5.648 11.019 – 310.3.181 25.471 – 728 286 457 1.255 3. fittings and equipment Computer software and hardware Systems work in progress – 9.240 18.823 5.554 1.783 28.503 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .350 – – – 170.631.846 Property and equipment At 1984 valuation: Freehold land Freehold buildings At cost: Freehold land Long leasehold land Short leasehold land Freehold buildings Leasehold buildings Containers Motor vehicles Furniture.036 47.2003 RM’000 Corporation 31 March 2003 Ships At cost: Ships in operation Ships under construction 4.362 10.782 1.671 17.2002 RM’000 Depreciation charge for the year RM’000 Disposals and write-offs RM’000 Accumulated depreciation at Transfers 31.909) (208 ) – – – (3.4.829 34.962 570.978 – 474 – – – – – 10.700 10.230 7.696 55 46 5.555 280.300 13. SHIP. PROPERTY AND EQUIPMENT (CONTINUED) Accumulated depreciation at 1.
000.340 4.374 2003 RM’000 505. is as follows: Group and Corporation 2004 2003 RM’000 RM’000 Freehold land . charged or subleased without the prior consent of the Johor State Government.230.000 which cannot be disposed off. Certain ships of the Group have been pledged as security for banking facilities as set out in Note 26. PROPERTY AND EQUIPMENT (CONTINUED) Certain properties were revalued by the directors in 1984 based on valuations carried out by a firm of professional valuers to reflect the current market value then. SHIP.158 818 3.168.525 (2003: RMNil).141 11.1984 Freehold buildings .344. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .089. The carrying amount of the long term leasehold and foreshore land that would have been included in the financial statements had the assets been carried at cost less accumulated depreciation is RM8. The net book value of these ships is as follows: Group 2004 RM’000 Ships in operation 5. The net book value of revalued properties.486 4.1984 818 3.304 Included in long term leasehold land of the Group is carrying value of a long term leasehold and foreshore land of a subsidiary acquired during the year of RM58. Surpluses on revaluation were taken to the revaluation reserve on that date. had the assets been carried at cost less depreciation. The long term leasehold and foreshore land were revalued in 1998 by an independent professional valuer based on an open market value basis.149 Borrowing costs capitalised during the financial year under ships under construction of the Group amounted to RM23.
142 Notes To The Financial Statements (continued) 12. MSE became a subsidiary of the Corporation.643 (ii) The effect of the acquisition on the financial results of the Group from the date of acquisition to 31 March 2004 is not material.277.127 (776. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .406 13.675. As a result. SUBSIDIARIES Corporation 2004 2003 RM’000 RM’000 Unquoted shares at cost Loans and advances to subsidiaries 2.057 13. the Corporation through its wholly-owned subsidiary.673) 469.643 MSE* RM’000 – – – – Total RM’000 1.673) 469.811) (30.273 The loans and advances to subsidiaries are unsecured and interest-free and are not repayable within 12 months from the balance sheet date.924 2. Limited ("AET"). Details of the subsidiaries are disclosed in Note 38.867 2.811) (30. Bhd.437. (a) Acquisition of subsidiaries (Note 40) (i) On 22 July 2003.277. The effects of the acquisition on the financial results of the Group from the date of acquisition to 31 March 2004 are as follows: AET RM’000 Revenue Operating costs Non operating costs Net profit * 1. ("MSE").127 (776. and On 17 March 2004.867 2.451. acquired 100% interest in American Eagle Tanker Inc.662. the Corporation acquired an additional of 22% equity interest in MSE Holdings Sdn.
576.564) (1.694 (169.008.263.443 526.217.274 The fair values of the assets acquired and liabilities assumed from the acquisition of the subsidiaries are as follows: AET 22.173 ) 2.426 – 47.375) – (46.521 (207.363 ) 9.562 Total RM’000 4.263.884 373.205) 1.7.769) (1.088 80.745.593.492 (6.189) (1.305 26.331) (2.355 (123.072) (57.375) – (46.557) (100.230) 1.363) 639.869.505 ) (1.2003 RM’000 Net assets acquired: Ship.321 1.862) 483.170.130) (1.884 366.121) (1.631 (169.173) 322.583 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .104 115.501.063 – 1.144) (1.173) 1.409 35.074 101.458 (207.072) (10.492.672. net Inventories Trade and other receivables Provision for doubtful debts Cash and balances Trade and other payables Amount due to holding company Deferred taxation Borrowings Minority interests Group's share of net assets 3.173) 313.425 2.326. property and equipment Investments Goodwill on consolidation. SUBSIDIARIES (CONTINUED) The effects of the acquisition on the financial position of the Group as at 31 March 2004 are as follows: AET RM’000 Ship.934 159.306 (6.559 153.646) 79.746) (1.104 8.557 ) (100.870 (408.063 – 630.975) (169.389) (169.199 4.613 (121.217.329.515 (285.704 15 55.143 12.515 (285.384 460.865.964 – 609.798 (12. at date of acquisition Goodwill on acquisition Total consideration MSE 31.414) – 2. property and equipment Other investments Inventories Trade and other receivables.278 15 9.712 MSE RM’000 460.2004 RM’000 Total RM’000 3.331) (48.400.893.846 79.216) 403.278 15 8.958 467.242 15 618.3.349.128 (407.170.975 ) 482. net Cash and bank balances Trade and other payables Amount due to holding company Deferred taxation Borrowings Fair value of total net assets Less: Minority interest Group's share of net assets Less: Carrying amount accounted for as associated company.
199 Total RM’000 2. ("MHS"). Bhd.583 1. MISC Integrated Logistics Sdn.3.711 21.620 119. Bhd.008.186 144. Bhd.684 2. the remaining 25% equity interests in MISC Haulage Services Sdn.893.714 Share of post-acquisition (losses)/profits Share of other post-acquisition reserves Represented by: Share of net tangible assets Share of intangible assets 127.466 136 127.199 (79.008.839 325.848.345 Loans to associated companies The loans to associated companies are unsecured. MHS became a wholly-owned subsidiary of the Corporation.029 115. Details of the associated companies are disclosed in Note 39. SUBSIDIARIES (CONTINUED) AET 22.813.2003 RM’000 Satisfied by cash Net cash outflow arising from acquisition: Cash consideration Cash and cash equivalents of subsidiary acquired 1.714 8. The acquisition was completed on 19 May 2003.144 Notes To The Financial Statements (continued) 12.578 136 325.897 124.893. As a result.384 MSE 31.2004 RM’000 115.260 134.978 55..602 25.666) 16.713 (b) On 19 May 2003.355) 1. 13.583 (159.602 7. ASSOCIATED COMPANIES Group 2004 RM’000 In Malaysia: Unquoted shares at cost Outside Malaysia: Unquoted shares at cost 2003 RM’000 112. interest-free and are not repayable within 12 months from the balance sheet date.7.870 ) 1.515) 35.713 (22. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .631 334.555 127.384 (80.093 133.862 325. a wholly-owned subsidiary of the Corporation acquired from Faber Haulage Sdn.
435) 43.168 ) 352.232 409.154 – – (28.896 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .353 18.502 38.021) 381. INTANGIBLE ASSETS 210.425 5.145 14.542 ) (8.677 ) (8.197 160. unquoted Less: Provision for diminution in value 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 44. quoted in Malaysia Market value of quoted shares 15.425 5.021 ) 534 639.040 13.409 51.254 45.808 236. OTHER INVESTMENTS Group 2004 RM’000 At cost: Shares in corporations.057 (1.363) 43.808 236.093) 623.823 429.251 (146) (88) (39.163) – 380.991 – – (28.097 – – (11.446 Reserve arising on consolidation RM’000 Group Net book value at 1 April 2002 Acquisition of a subsidiary Additional interest in a subsidiary Amortisation charge Impairment loss in goodwill Net book value at 1 April 2003 Acquisition of subsidiaries (Note 12(a)) Additional interest in a subsidiary (Note 12(b)) Amortisation charge Net book value at 31 March 2004 – (146 ) (88 ) 28 – (206 ) – – 47 (159) Goodwill RM’000 Other intangible assets RM’000 Total RM’000 20.214) 975.366 (22.366 (50.446 192.881 (1.694 192.319 639.449 38.333 12.449 Shares in corporations.409 51.040 – 38.040 13.040 – 38.
235.968 4.685 1. interest-free and have no fixed terms of repayment. DUE FROM ASSOCIATED COMPANIES Group 2004 RM’000 Trade Less: Provision for doubtful debts 1. DUE FROM GROUP COMPANIES Group 2004 RM’000 Trade: Due from holding company Due from fellow subsidiaries Due from subsidiaries Less: Provision for doubtful debts 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 330 28.960 The amounts due from associated companies are unsecured. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .566 33.017 (96 ) 17.701 254.972 104 49.580 (96) 1.214 ) 276.575 (96) 1.751 Non trade: Due from fellow subsidiaries Due from subsidiaries 4.968 4 414 521.264 (2.436 The amounts due from holding company.996. interest-free and have no fixed terms of repayment.936 715.496 1.685 2.484 2003 RM’000 18.642 – – 28.146 Notes To The Financial Statements (continued) 16.864 – – 49. 17.056 (96 ) 17.699 (2.560 710.996.903 – 24.538 – – – 49.479 18.566 – 4.273.399 – 1.921 Corporation 2004 2003 RM’000 RM’000 1.214) 519. fellow subsidiaries and subsidiaries are unsecured.
485 (67.228) 73.715 52.167 498 8.308) 96.664 5.499 – (37.764 4.972 38.486 61.205 Staff housing and vehicle loans Non trade receivables Deposits Prepayments 622 119.198 99.425 1.814 238.982 380 53.369) 200. RECEIVABLES Group 2004 RM’000 Trade receivables Due from customers on contracts (Note 20) Less: Provision for doubtful debts 723.773 (2.559 75.480 (2.541 – – 57.649 – 81.715 – – 61.419 Less: Provision for doubtful debts The Group's normal trade credit term ranges from 14 to 60 days (2003: 14 to 60 days).517 ) 297.531 28.814 657 61.545 – 421. lubricants and consumable stores Spares Raw materials 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 78.252 – 333.692 10.328 Recoverable amount from deconsolidated subsidiaries 4.148 38.527 334.705 Corporation 2004 2003 RM’000 RM’000 385.660 2003 RM’000 435.147 18.541 19.127 479.409 20.843) 378.072 (2.099.517) 347. INVENTORIES Group 2004 RM’000 At cost: Bunkers.635 28. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .127 1.228) 36.484 76.094) 895.859 32.927 202.284 57.358 4. The Group has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of debtors.303 1.697 (2.657 – (56.684 – (37.822 128. Other credit terms are assessed and approved on a case-by-case basis.
586 773.222 1.294 2003 RM’000 – – – Due from customers on contracts (Note 19) Due to customers on contracts (Note 25) 238. MARKETABLE SECURITIES Group 2004 RM’000 Quoted in Malaysia: At market value As at year end.348.213 350.350 5.148 Notes To The Financial Statements (continued) 20.062 (1.489 161.411.768) 219.029.872 245.911 20.485 (19.432 5. 22.432 4.652 367.085 1.288 92. CASH.128.695 1.870 78.471 49.519 235.853.106 5. DUE FROM/(TO) CUSTOMERS ON CONTRACTS Group 2004 RM’000 Construction contract costs incurred and recognised profits to date Less: Progress billings 1. DEPOSITS AND BANK BALANCES Group 2004 RM’000 Deposits with: licensed banks licensed finance companies Cash and bank balances 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 5.795 80.191) 219.711 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . no marketable securities are stated at cost.604 497.294 – – – 21.
149 22.2.95 1 .2.30 1 .2.475 3.80 2.80 2.823 24.30 7 .881 3.75 .2.474 – – 24.125 – 54.80 2.60 .80 2.950 95.60 . DEPOSITS AND BANK BALANCES (CONTINUED) The range of interest rates and maturities of deposits as at 31 March 2004 were as follows: Range of Interest Rates 2004 2003 % % Group Licensed banks Licensed finance companies Corporation Licensed banks Licensed finance companies 1.563 59.509 Non trade: Due to holding company Due to fellow subsidiaries Due to subsidiaries 16.2.90 2.812 38.30 1 .901 203.451 28.30 1 .60 .75 .456 – 19.872 – 53.00 .000 60.931 105. CASH. fellow subsidiaries and holding company are unsecured.951 287.2.30 7 .842 43 – 38. DUE TO GROUP COMPANIES Group 2004 RM’000 Trade: Due to holding company Due to fellow subsidiaries Due to subsidiaries 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 26.80 2.80 2.95 1 .318 – 85.983 The amounts due to subsidiaries.885 102.500 – 4.60 .60 .125 – 63.474 119. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .971 258.2.30 1 . interest-free and have no fixed terms of repayment.559 41.2.010 24.90 Range of Maturities 2004 2003 Days Days 23.
205 19.072 667.020 2003 RM’000 499.244 197.150 Notes To The Financial Statements (continued) 24.147 2003 RM’000 2.072 1.576 54. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .174 – – 535. PAYABLES AND ACCRUALS Group 2004 RM’000 Trade payables Due to customers on contracts (Note 20) Non trade payables Accruals and provisions Provision for warranties Due to deconsolidated subsidiaries 772.160 The normal trade credit term granted to the Group ranges from 14 to 60 days (2003: 14 to 60 days).043 Corporation 2004 2003 RM’000 RM’000 395.057 – 106. DUE TO ASSOCIATED COMPANIES Group 2004 RM’000 Trade Non trade 334 813 1. interest-free and repayable upon completion of the liquidation exercise.204.191 195. 25.789 The amounts due to associated companies are unsecured.789 – 2. A provision has been recognised at the financial year end of expected warranty claims based on past experience of the level of repairs and returns.980 33.445 3.211 385.575 – 65.863 16.299 – 46.707 – 3.285 – – 486.052 Corporation 2004 2003 RM’000 RM’000 – 813 813 2.819 233 3. interest-free and have no fixed terms of repayment. The amount due to deconsolidated subsidiaries is unsecured. The Group gives approximately one year warranties on certain products and undertakes to repair or replace items that fail to perform satisfactorily.689 98.
183.094 1.102.808 – 400.095.390 – – – – – – Unsecured: Bank overdraft Term loans Islamic Private Debt Securities .094 400.000 1.179 – – – – – – Unsecured: Term loans Islamic Private Debt Securities .340 5.000 2.000 4.807 4.Al Murabahah Commercial Papers – 4.000 400.671 945.481 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .150 298.580 297.000 – 400.000 600.775.616.446 1.179 – 297.822 400.000 1.671 1.822 22.000 400. BORROWINGS Group 2004 RM’000 Short Term Borrowings Secured: Term loans .430 92.Floating rate 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 275.000 960.166.Fixed rate .5% Non-convertible Cumulative Redeemable Preference Shares ("NCRPS") of USD188.8.131.52.509 2.189.390 – 92.148.081.807 2.151 26.110.671 – 1.134 3.899 – – 600.Fixed rate .000 – 400.Floating rate 2.000 – 400.340 600.00 each 22.016.838 1.000 7.280 573.671 Long Term Borrowings Secured: Term loans .Al Murabahah Medium Term Notes 560.770 10.375.000 600.000 10.056.
707 – – 600.333.000 600.963 1.000 1.000 400.444 Islamic Private Debt Securities Within one year More than one and less than two years More than two and less than five years 600.244.807 9.000 1.770 794.100.000 400.589.000 400.510.100.000.807 9.251 22.152 Notes To The Financial Statements (continued) 26.000.510.Al Murabahah Commercial Papers .000 400.000.444 600.038.835 8.671 – 1.258.500.444 22.671 2.000 – 1.500.711.000 1.000 – 1.229 752.228 888.000 – 400.356.000.382 32.000 – 400.671 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 NCRPS MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .000 400.876 1.510.900 22.333.671 1.000 NCRPS No fixed maturity 22.000 10.000 4.689.000 400.229 1.221.000 1.356.229 – – – – – – – – – – – 10.251 Maturity of borrowings Bank overdraft Within one year Term loans Within one year More than one and less than two years More than two and less than five years Five years or more 4. BORROWINGS (CONTINUED) Group 2004 RM’000 Total Borrowings Bank overdraft Term loans Islamic Private Debt Securities .711.244.807 4.707 – 1.671 – 10.671 – 1.671 10.000 1.000.807 4.Al Murabahah Medium Term Notes – 8.000 – 1.333.100.390 2.000 9.100.000 1.000 – 1.
963 On 16 July 2003.8% to 7. a wholly-owned subsidiary of the Corporation.8% to 7. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . obtained unsecured short term borrowings amounting to USD830 million from a consortium of financial institutions and licensed banks pursuant to a Bridge Facility Agreement. These secured term loans bear interest at rates ranging from 6.518 – 102. The remaining unsecured term loans bear interest at rates ranging from 1.5% (2003: 1.4%) per annum and are repayable at their various dates from 1994 to 2007.4% (2003: 6.2% to 1.4%) per annum and are repayable at their various dates from 1994 to 2017 (2003: 1994 to 2007). The borrowings are guaranteed by the Corporation. The Corporation has embarked on a fund raising exercise to replace this Facility.058 2003 USD’000 610. charter agreements and insurance of the relevant ships. The unsecured term loans of the Group comprise: Group 2004 USD’000 US Dollar Term Loans 1. bear an interest rate of LIBOR+0.518 The USD term loans are secured by mortgages over certain ships.530 974. BORROWINGS (CONTINUED) Term Loans The secured term loans of the Group comprise: Group 2004 USD’000 US Dollar Term Loans US Dollar Term Loans on acquisition of a subsidiary 605.153 26.20% per annum and repayable in full on 14 July 2004. AET Holdings (L) Pte.381 2003 USD’000 102.203. Ltd. together with assignments of earnings.6% to 2. The carrying value of the ships pledged is stated in Note 11.851 368.
31 2. The NCRPS shall not entitle its holder thereof to participate in the profits or surplus assets of the subsidiaries. BORROWINGS (CONTINUED) Islamic Private Debt Securities During the financial year ended 31 March 2004. 5 Issue No. The amount. 19 Preference Shares 11. 4 Issue No.5% NCRPS of USD1. 6 Issue No. 1 Issue No.000 400. 19 400.6. and (e) 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 extendable for a period of five years subject to the approval of the preference shareholders. 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.100 million and issued new Al-Murabahah Commercial Papers of RM600 million.4.2005 10.500.85 5. 5 Issue No.000 – – 1.91 2.000 300.5% per annum. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . the Corporation repaid Al-Murabahah Commercial Papers of RM1.2003 30.92 – – Issue No.000 Maturity date 2004 2003 Yield at issuance date 2004 2003 % % 5.000 1.2004 24. (b) (c) (d) The NCRPS shall not be converted to ordinary shares of the subsidiaries.000 – – – 400. 18 Issue No.86 184.108.40.2063 – – The 7.000 200.000.7.2005 – – – 12.154 Notes To The Financial Statements (continued) 26. 6 Issue No. 18 Issue No.2003 27. 4 Issue No.31 – – – 2. 1 Issue No.92 2.5.000 300. maturity date and yield as at issuance dates of the Islamic Private Debt Securities of the Group and the Corporation are as follows: Group and Corporation Amount 2004 2003 RM’000 RM’000 Issue No.00 each issued to minority shareholders of certain subsidiaries shall confer the holders the following rights and privileges: (a) The right to receive out of net profit for the year of the subsidiaries a cumulative preferential dividend on each preferential dividend share at a net of 7.4.2004 11.000 500.
914 * Included in the authorised and issued and fully paid share capital is one preference share of RM1 (2003: RM1).618 18.914 1.185 41. OTHER RESERVES Group 2004 RM’000 Non-distributable Revaluation reserve Capital reserve arising from bonus issues in subsidiaries Other capital reserve Statutory reserves Currency translation differences 35.859.217 – – – – 35.859.217 38.859.000 2.123 3.500.000 1.859.993 38.733 16.921 1.914 1.000 2.921 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .921 – – – – 38.000 2.500.272 1.795 99.728) 96.802 35. Other rights and restrictions attached to the preference share are set out in Article 3B of the Corporation’s Articles of Association. SHARE CAPITAL Number of Ordinary Shares of RM1 each 2004 2003 ’000 ’000 Authorised*: At 1 April/31 March Issued and fully paid*: At 1 April/31 March Amount 2004 RM ’000 2003 RM’000 2.500.914 1.155 27.500. 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. 28.185 41.691 (1.
618 42.728) 5.802 – – – 35.921 – 38.921 38.389 (1.921 (3.921 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .728) 96.156 Notes To The Financial Statements (continued) 28.921 (3.117) 4.691 1.185 – – 41.993 (6.839 5.217 38.432 18.852 16.704) 35.523 3.185 1.733 – – – – – – – – 16.795 99.272 38.733 (115) – 41.217 – – – 38.691 – – – – – – Currency Translation Differences At 1 April 2003/2002 Arising in the year At 31 March 2004/2003 (1. OTHER RESERVES (CONTINUED) The movement in each category of reserve were as follows: Group 2004 RM’000 Revaluation Reserve At 1 April 2003/2002 Deferred tax liabilities recognised (Note 29) At 31 March 2004/2003 Capital Reserve Arising From Bonus Issues in Subsidiaries At 31 March 2004/2003 Other Capital Reserve At 1 April 2003/2002 Transfer to retained earnings Exchange differences At 31 March 2004/2003 Statutory Reserves At 1 April 2003/2002 Transfer from retained earnings At 31 March 2004/2003 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 38.088 (350) (5) 41.921 1.123 10.921 – 38.649) 35.
925 – 3.Outside Malaysia Charged to equity (Note 28) Acquisition of subsidiaries At 31 March 2004 Presented after appropriate offsetting as follows: Deferred tax assets Deferred tax liabilities (8.121 72.In Malaysia .163) (86) 3.704 – 3. 1989 and by overseas companies in accordance with the laws of the respective countries.446 – 14.446 2003 RM’000 14.925 Corporation 2004 2003 RM’000 RM’000 – – – 3. OTHER RESERVES (CONTINUED) The nature and purpose of each category of reserve are as follows: (a) Revaluation Reserve The revaluation reserve represents surplus arising from the revaluation of certain freehold land and buildings of the Corporation in 1984.925 (3.157 28.649 57. (c) Statutory Reserves The statutory reserves are maintained by a merchant bank in compliance with Section 36 of the Banking and Financial Institutions Act.849) 81.704 – – – 14.295 72.925 14. (b) Other Capital Reserve Other capital reserve represents the Group’s share of its associated companies’ reserve.503 531 (109 ) – – 14.704 3. DEFERRED TAXATION Group 2004 RM’000 At 1 April 2003 Recognised in the income statement (Note 8) .704 – – – – – – MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . 29. (d) Currency Translation Differences Reserve The currency translation differences reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign subsidiaries.
125) Others RM’000 (285 ) 160 – – (125 ) Total RM’000 (3.286) (9.649 65.642 (1.047) – – 63.642 (1.In Malaysia .178) (25) – (4.In Malaysia .704 3. DEFERRED TAXATION (CONTINUED) 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 Allowances RM’000 At 1 April 2003 Recognised in the income statement (Note 8) .717) (2.407 86.649 Others RM’000 – – (23 ) – 2.182) Revaluation of properties RM’000 At 1 April 2003 Charged to equity (Note 28) At 31 March 2004 – 3.628 Deferred Tax Assets of the Group: Tax Losses and Unabsorbed Capital Allowances RM’000 (2.785 Revaluation of Land RM’000 – – – 3.047) (23) 3.649 – 3.116) (63 ) (8.190 80.158 Notes To The Financial Statements (continued) 29.Outside Malaysia Charged to equity Acquisition of subsidiaries At 31 March 2004 18.Outside Malaysia Acquisition of subsidiaries At 31 March 2004 Deferred Tax Liabilities of the Company: (703 ) (98) (38 ) (8.932) Other Payables RM’000 At 1 April 2003 Recognised in the income statement .704 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .217 2.286) (14.194 Total RM’000 18.729) (2.
414 (4.961) 2.667 19.119.367.030 980.023) – (8.931 – 283 (40 ) 620 – – 13. DEFERRED TAXATION (CONTINUED) Deferred tax assets have not been recognised in respect of the following items: Group 2004 RM’000 Unused tax losses Unabsorbed capital allowances 1.044.500 ) – (71 ) (8.951 – 1.435) 3.906 904.911. Deferred tax assets have not been recognised for certain subsidiaries as these subsidiaries have a recent history of losses.436.670) 2003 RM’000 (1. net (Note 12(a)) Purchase of additional shares in a subsidiary (Note 12(b)) Investment in subsidiaries Subsidiaries deconsolidated.858) – (1.Unquoted investments Dividends received from associated companies Proceeds from disposal of ship.759 – 3.696 – 680 – – 5. net Investment in quoted shares Repayment of loans by subsidiaries Dividends received from .019.900.848.136 414 11.132) (115.545.536 25.851.218 (1.448 963.417 (1.573) (1.758 (1.713) (19.753 (1.435) – 5.159 29.708 945 (40) 826 – (778 ) 37.702 2003 RM’000 943. property and equipment Acquisitions of subsidiaries.500) – – – – 8.350) MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .500) (2.307 3.650 14.876 12.924) (1. property and equipment Purchase of marketable securities Proceeds from disposal of marketable securities Proceeds from disposal of an associated company Investment in unquoted shares Interest received Net cash used in investing activities (2. CASH FLOW FROM INVESTING ACTIVITIES Group 2004 RM’000 Purchase of ship.179 322 24.071 848 874.325 918.199) – – – – – 865 420.975 The unused tax losses of the Corporation relate to the loss making non-resident ships and can only be utilised to offset against future taxable profits of the same ship.Quoted investments . 30.019.166 1.170) Corporation 2004 2003 RM’000 RM’000 (1.115 Corporation 2004 2003 RM’000 RM’000 968.315 930 – 20.
SIGNIFICANT RELATED PARTY TRANSACTIONS In addition to related party disclosures elsewhere in the financial statements.631 1.561) (212. unless otherwise stated.631 2.154.974) – (35.977 ) (180.289 132.368 90. set out below are other significant related party transactions and balances. 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.032 – – 2.000 2. Bhd.333) (405.315 81.000) (557.000) (557.000 (1.160 Notes To The Financial Statements (continued) 31. Forwarding charges .493) – – 1.020.974) (8.000) (557.148.974) (8.423) 2. Bhd.393 ) (1.363) 31.143 600.000 (1. Warehouse services . Petronas Trading Corporation Sdn.576.Holding company .220.852 106.323.056 2003 RM’000 – – 1.345.750. CASH FLOW FROM FINANCING ACTIVITIES Group 2004 RM’000 Drawdown of bridging loan Drawdown of term loans Drawdown of Islamic Private Debt Securities Repayment of term loans Repayment of Islamic Private Debt Securities Dividends paid to shareholders of Corporation Dividends paid to minority shareholders of subsidiaries Interest paid Net cash generated from/ (used in) financing activities 3.608 915.000 – (1. Bhd.081 90.000 (63.298) Corporation 2004 2003 RM’000 RM’000 – – 600.284 19.Fellow subsidiary Vinyl Chloride (Malaysia) Sdn.375 7. Bhd.330 32.100.519) (1.954) (405.315 81. Group 2004 RM’000 (a) Provision of shipping and shipping related services Charter hire revenue .737 – – MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .000) (557.100.Fellow subsidiaries Malaysia LNG Sdn. 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 132.974 ) – (42.100.095.Fellow subsidiary Malaysia International Trading Corporation (Japan) Sdn.093.129) (1.608 3.289 2.100.249 106.
693 287.Fellow subsidiaries Petronas Dagangan Berhad Petronas Trading Corporation Sdn. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTINUED) Group 2004 RM’000 (b) Purchases of goods and services Purchases of bunkers.Shareholder of subsidiaries Nippon Yusen Kaisha 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 59.397 287.041) 14.176 225. MSE became a subsidiary of the Corporation as at the year end. Malaysia International Trading Corporation (Japan) Sdn.937 – – The transfer of ship. Bhd.Associated company Malaysia Shipyard & Engineering Sdn.322 329. the transactions during the financial year have not been eliminated. Purchase of crew services .046 19.643 13.098 295. Bhd.161 32.426 61.499 11.029 335.646 14.Shareholder of subsidiaries Nippon Yusen Kaisha Net transfer of ship.346 2.098 295. property and equipment to the subsidiaries are at their respective net book values.927 59.Subsidiaries Purchase of information technology services .593 – – – – (9.133.285 3.819 124. Purchases of services for repairs. Bhd.Holding company Management fee . property and equipment to .693) (2.426 45.043 59.597 19. lubricants and spare parts . MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .683 225. and accordingly.927 48. conversion of vessels and dry docking .869 128.
669 247.842 61.833.972 1.393.072 8.237.085 469.758 9.809 Commitments under non-cancellable operating lease: Within one year Between one and two years Between two and five years 109.500 3.697.945 8. COMMITMENTS Outstanding commitments in respect of capital expenditure at balance sheet date not provided for in the financial statements are as follows: Group 2004 RM’000 Capital expenditure for ship.750.085 Commitments for equity investment: Authorised but not contracted for 3.513 112.507.764 834 31.360 112.633 1.618 7.179 42.543 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .452 76.025 – 7.688.468 6. property and equipment: Authorised and contracted for Authorised but not contracted for 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 4.816 114.162 Notes To The Financial Statements (continued) 33.962 3.709.527.694 – 6.085 – 37.173 10.895 5.500 6.695.272.157 33.440 1.147 5.989 5.633 1.793.371 6.449 3.467 21.147 23.157 1.278.085 – 37.158.930 3.963 22.816 114.109 37.449 Commitments for information technology projects: Authorised and contracted for Authorised but not contracted for 37.
(ii) (iii) Shipbuilding and repairing and heavy engineering works.321. trucking and warehousing and agency businesses. CONTINGENT LIABILITIES Group 2004 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 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 16.396 8. SEGMENT INFORMATION (a) Business Segments: The Group is organised on a worldwide basis into four major business segments: (i) Shipping .349 – 16. Integrated liner logistics .210 35.comprises liner services.349 11.163 34. petroleum tanker services.171 13.includes fleet management services. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . The directors are of the opinion that all inter-segment transactions 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. marine education and training and other diversified businesses.026 6. and (iv) Non-shipping .370 6. haulage.308.192 60.171 – 11.the provision of liquefied natural gas ("LNG") services.018 68. chemical tanker services and dry bulk carrier services.
241 – 6.128.862 22.476 Capital expenditure 6.311 2.324 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .496 1.694 2.806 37.663 3.476 10. SEGMENT INFORMATION (CONTINUED) (a) Business Segments: (continued) Shipbuilding and Repairing Integrated and Heavy Liner Engineering Logistics Works RM’000 RM’000 2004 REVENUE AND EXPENSES Revenue Result Segment results Other operating income Shipping RM’000 NonShipping RM’000 Total RM’000 Eliminations Consolidated RM’000 RM’000 5.022 2.706) 2.603.126.355.404 (7.461 3.887 Investment in equity method of associated companies – 1.796 446.319.127) 2.986 72.220.652 134.514 Segment liabilities OTHER INFORMATION 6.672 (157.565.009 525.326.496 1.371 15.726 63.283) (461.126.271 2.445.227 6.220.8220.127.116.119 – 1.615.061 2.420 (210.607 6.029 7.662 430.485 1.875.477 920.069 10.324 57.594 – 460.792 Finance costs (unallocated) Share of results of associated companies 3.415.311 6.029) 7.277 (29.752.858 – – – 72.652 134.631 43.278 – – 2.148 912.606.226 519.714 22.504 – 5 57.509 27.492.477 2.252) 2.164 Notes To The Financial Statements (continued) 35.752.622 1.514.951 133.195 5.284 527.324.657.350 126.862 22.661 Impairment losses 1.799 Depreciation 994.311 Non-cash expenses other than depreciation and impairment losses 54.969) (619.493) 27.622 1.300 (51.990 Profit before taxation Taxation Profit after taxation Minority interests Net profit for the year ASSETS AND LIABILITIES Segment assets 18.210 – 51.509.571 Profit from operations 2.289.815 88.875.
032.990 42.432.032.587 14.353 61.559 5.358 253 1.363 ASSETS AND LIABILITIES Segment assets Investment in equity method of associated companies 11.165 35.507 1.169 ) (909.348 413.713 64.919.713 64.300 3.749 1.758.275 931.334 875.948 2.391.695 1.703 1.028 15.310.518 (169.628 ) 5.550 40.581) 40.345 14.391.705 1.671.303 Segment liabilities 4.643 1.978 (270.624 (61.958 334.872.919.952 28.777 747.628 5.807 (3.533) 6.378.832 (277.449.199) (980.462 11.215 7.604.494.419.313.663 – (187) 40.144) 1.140 56.695 900.758 249.310.996 1.560.726.865.958 334.215 152.935 OTHER INFORMATION Capital expenditure Depreciation Non-cash expenses other than depreciation and impairment losses 1.159.609 1.938 969. SEGMENT INFORMATION (CONTINUED) (a) Business Segments: (continued) Integrated Liner Logistics RM’000 2003 REVENUE AND EXPENSES Revenue Result Segment results Other operating income Profit/(loss) from operations Finance costs (unallocated) Share of results of associated companies Profit before taxation Taxation Profit after taxation Minority interests Net profit for the year Shipping RM’000 NonShipping RM’000 Total Eliminations Consolidated RM’000 RM’000 RM’000 3.695 900.439.363 1.159 305.847 – 2.555) 56.705 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .982.935 5.345 14.368) 1.886 (71.137 87.769 60.
307 – – – 5. In Malaysia.027.432.097 Malaysia RM’000 2.271 22.695 36.726.218 2. its home country.857.587 34.807.035.Australasia .143 4.148 551.818 17.The United States of America.134 413.372 2. The excess is paid by the Group to a special account in PETRONAS as a provision for retirement benefits.046.303 1.187 2.Asia and Africa . they operate in five principal geographical areas of the world. less statutory contribution.606. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . The monthly maximum tax allowable contribution is paid to the Fund by the Group.541 471.191.036 940.053.242.127 5.985 7. arising from acquisition of AET group The United States of America Consolidated RM’000 RM’000 1.658 14.710 712. PETRONAS Tankers Sendirian Berhad ("PTSB") contributes monthly to the PETRONAS Retirement Benefit Fund ("the Fund") based on eligible employees’ monthly salary.023.044 820.343 810. The assets of the Fund are held separately for the Group by the Trustees and the liability of the Fund is determined by the accrued benefit calculated based on Projected Service Liability for eligible employees.179 1. to finance the retirement benefits payable to eligible employees in accordance with the group retirement scheme of the ultimate holding company.507.956 457.875. This valuation showed that the fair value of the Fund assets is sufficient to meet the actuarially determined value of vested benefits.910 63.572.199 Europe Australasia RM’000 RM’000 1.714.277.355. The last valuation performed for the Fund was on 31 March 2004.719 11. RETIREMENT BENEFITS A subsidiary of the Group.964 4. The Group also operates shipping and integrated liner logistics in other regions in the world as follows: .558 193 Total revenue from external customers Segment assets Capital expenditure 2003 Total revenue from external customers Segment assets Capital expenditure 1. the Group's areas of operation are principally shipping.255.919.996 14. integrated liner logistics and non-shipping.622 2004 Asia and Africa RM’000 1.514 6. An actuarial valuation of the Fund is conducted by a qualified independent actuary at least once in every three years. SEGMENT INFORMATION (CONTINUED) (b) Geographical Segments: Although the Group's four major business segments are managed on a worldwide basis.166 Notes To The Financial Statements (continued) 35.Europe .268 9.
analyse. FINANCIAL INSTRUMENTS (a) Financial Risk Management Objectives and Policies The Group is exposed to various risks that are particular to its core business of logistics and maritime. foreign exchange exposures arising from debt repayment obligations which are denominated in currency other than the local currency. (iii) Foreign Exchange Risk The Group's foreign exchange risks comprise transaction risk which arises from day-to-day requirements to pay and to receive in currencies other than the local currency. The Group does not actively use foreign exchange derivative instrument as a means to hedge its transaction risk. The risk is. and structural foreign currency translation exposures arising from investments in foreign subsidiaries and associated companies which are denominated in the currencies where they are domiciled. The Group adopts an effective and progressive corporate risk management system to identify. as far as possible. foreign exchange risk and liquidity risk. The interest rate swap contracts convert a portion of its floating interest rate obligations to fixed interest rate obligations. the Group has existing interest rate swap contracts arising from its acquisition of a subsidiary in 1998. receipts and payments in each individual currency. The Group also borrows in foreign currency (mainly US Dollar) to meet its investment requirements that generate income in the same currency. The pegging of Ringgit to US Dollar by the Central Bank further reduces the transaction risks as far as conversion needs between the two currencies are concerned. Exposure to credit risk is monitored on an ongoing basis by the Credit Control Committee which is represented by the business units and subsidiaries in the Group. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . (i) Credit/Counterparty Risk The credit policy of the Group requires all credit exposures to be measured. By maintaining a balanced portfolio of floating and fixed interest rate debts in both local and foreign currencies. appraise and monitor the risks facing the Group and to take specific measures to mitigate these risks. the risk arising from potential fluctuations in interest rates is mitigated.167 37. (ii) Interest Rate Risk 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). interest rate risk. The risks can be broadly classified under credit/counterparty risk. The Group generally does not take any speculative view on the movement in interest rate and therefore does not actively use interest rate derivative instruments to hedge its exposures. monitored and managed proactively. Credit evaluations are performed on customers requiring credit. naturally hedged through matching. by and large. Finance risk can also arise as a consequence of the Group conducting its core businesses that entail financing and/or investment needs. While the Group does not actively hedge its interest rate risk.
897 9.174 28.844 8.299 285 2.036 10.307 67. Any shortfall and additional cash requirements arising from the Group's merger and acquisition activities can be met by additional financing.819 3.305 17.183 45.685 13.246 80.311 829. The Group's strong balance sheet provides it with financial flexibility in determining the optimum financing source. the Group has Ringgit credit facility which can be redrawn until June 2005 amounting to RM1.897 169 1.979 6.963 2003 RM’000 Corporation 2004 2003 RM’000 RM’000 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .224 14. The Group's holdings of cash and short term deposits.369 13.310 3.889 9.9 billion.185 5. bond issuance and structured financing. include bank borrowings.168 Notes To The Financial Statements (continued) 37.515 11.055 5. A long term committed financing facility of USD820 million has been arranged with Japan Bank for International Cooperation to finance the progress payments for contracted capital commitments for 6 LNG vessels and as cash reimbursement for prior payments initially made using the Group's internal funds.709 21. 476.013 15.413 22.288 2. The various options.887 420 1.428 83.071 34. In addition.983 238. (v) Forward Foreign Currency Contracts There are no open and outstanding forward foreign currency contracts entered into by the Group at the balance sheet date.471 4.810 12.5 billion.520 72.572 552 2. together with committed funding facilities and net cash flow from operations.443 3. among others.950 2.456 16.784 35.188 3.001 1. are expected to be sufficient to cover its cash flow needs (excluding merger and acquisition activities) in the next financial year.911 13. FINANCIAL INSTRUMENTS (CONTINUED) (a) Financial Risk Management Objectives and Policies (continued) (iii) Foreign Exchange Risk (continued) The major foreign currency financial assets and liabilities of the Group and the Corporation denominated in their functional currencies are as follows: Group 2004 RM’000 Cash and bank balances United States Dollar Sterling Pound Australian Dollar EURO Receivables United States Dollar Sterling Pound Australian Dollar EURO Payables United States Dollar Sterling Pound Australian Dollar EURO (iv) Liquidity Risk As at 31 March 2004.419 9. the Group had at its disposal cash and short term deposits amounting to RM1.844 39.971 264.
Borrowings The fair value of borrowings is estimated using discounted cash flow.040 18.169 37.446 * MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . based on current interest rates for similar types of borrowing arrangements. FINANCIAL INSTRUMENTS (CONTINUED) (b) Fair Values (i) Methods and Assumptions The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments: Cash and Cash Equivalents.197 * 13.881 210.353 * 13.057 160. Derivative Financial Instruments The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows.808 44.040 12.409 38. Marketable Securities The fair value of quoted shares is determined by reference to stock exchange quoted market bid prices at the close of the business on the balance sheet date. Trade and Other Receivables/Payables. based on current incremental lending rates for similar types of lending and borrowing arrangements.333 * 14 14 192. and Short Term Borrowings The carrying amounts approximate fair values due to the relatively short term nature of these financial instruments.808 45. Due to/from Group Companies and Associated Companies (trade). (ii) Recognised Financial Instruments The USD floating rate loan approximates the fair value determined using discounted cash flow.409 38. The aggregate net fair values of financial assets and liabilities which are not carried at fair value on the balance sheet of the Group and of the Corporation as at 31 March 2004 are represented in the following table: Group Carrying Amount Fair Value RM’000 RM’000 Corporation Carrying Amount Fair Value RM’000 RM’000 Note Financial Assets At 31 March 2004: Non-current quoted shares Non-current unquoted shares At 31 March 2003: Non-current quoted shares Non-current unquoted shares 14 14 192. Other Financial Assets and Liabilities The fair value of all other financial assets and liabilities is deemed to be equal to their carrying value unless stated otherwise in the relevant notes to the financial statements.
000)) and represents the amount the Group would have to pay to terminate the contracts.000 – 400.000.RM term loans Unsecured RM Islamic Private Debt Securities At 31 March 2003: Secured: . FINANCIAL INSTRUMENTS (CONTINUED) (b) Fair Values (continued) (ii) Recognised Financial Instruments (continued) Group Carrying Amount Fair Value RM’000 RM’000 Corporation Carrying Amount Fair Value RM’000 RM’000 Note Financial Liabilities At 31 March 2004: Secured: .000 265. Under these interest rate swap contracts.121 408. (iii) Unrecognised Financial Instruments EBC Limited.691 47.000).170 Notes To The Financial Statements (continued) 37.018.17% (2003: 1. These interest rate swap agreements expire in year 2005.0% per annum.4%) per annum.039 400.400 26 26 297.000 (RM37.407 45. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . the subsidiary concerned agreed with the counterparties to receive interest at floating rates and to pay interest at a fixed rate of 7.036.018.000) (2003: USD15. a subsidiary that was acquired in 1998 has interest rate swap contracts to convert a portion of its floating rate interest obligations to fixed rate obligations.400 – – 400.179 400.254 414.854. The estimated fair value of the interest rate swap contracts as at 31 March 2004 was USD9.000 (RM494. The average floating interest rate on these contracts during the year was 1.000 – – 408.000 * The fair value of non-current unquoted shares is not disclosed as it is not practicable to determine the fair value with sufficient reliability.000 (RM60.446.000 2. The interest rate swap contracts are secured by a counter-guarantee from certain subsidiaries of EBC Limited and mortgaged on the ships of these subsidiaries.000. calculated on the notional principal of USD130.USD term loans .USD term loans Unsecured RM Islamic Private Debt Securities 26 26 26 2.000 – 414.794.
EBC Limited MISC Ship Management Sdn. Sea Maestro Shipping Limited Gangga Nagara Shipping Limited EBC Assets Limited Peddler Shipping Limited Dinosaur Shipping Limited Skystrong Shipping Limited Rhinestone Shipping Limited EBC Assets Limited Thunder Bay Investment Limited Pacific Trident Limited Mun Kim Limited Malaysia Malaysia Malaysia Malaysia Malaysia British Virgin Islands Malaysia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Bermuda Liberia Hong Kong Liberia 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Bhd.171 38. Bhd. Bhd. Puteri Zamrud Sdn. Puteri Firus Sdn. Bhd. SUBSIDIARIES AND ACTIVITIES Country of Incorporation Malaysia Effective Interest (%) 2004 2003 100 100 Name of Company PETRONAS Tankers Sendirian Berhad Principal Activities Investment holding and provision of management services Shipping Shipping Shipping Shipping Shipping Investment holding Dormant Dormant Dormant Investment holding Shipping Shipping Shipping Shipping Investment holding Dormant Dormant Investment holding Puteri Intan Sdn. Bhd. Puteri Delima Sdn. Bhd. Puteri Nilam Sdn.
SUBSIDIARIES AND ACTIVITIES (CONTINUED) Country of Incorporation Liberia Liberia Bermuda Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Liberia Effective Interest (%) 2004 2003 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Name of Company EBC Holdings Limited EBC Shipping Limited EBC Shipping Limited Pacific Mattsu Shipping Limited Logger Shipping Limited Marquisa Shipping Limited Bison Shipping Limited Selesa Shipping Limited Safety Shipping Limited Plate Shipping Limited Spectrum Shipping Limited Happy Venture Limited Grand Way Investment Limited Trailblazer Investment Limited Gunner Shipping Limited Growth Shipping Limited Fantasy Shipping Limited Esperance Shipping Limited Fragrant Shipping Limited Sea Maiden Shipping Limited Sun Shipping Limited Principal Activities Investment holding Dormant Dormant Dormant Shipping Dormant Shipping Shipping Shipping Shipping Shipping Investment holding Dormant Shipping Dormant Shipping Shipping Shipping Dormant Dormant Shipping MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .172 Notes To The Financial Statements (continued) 38.
Principal Activities Dormant Dormant Dormant Dormant Investment holding Shipping agent and warehousing In liquidation Shipping agent Shipping agent Dormant In liquidation Shipping agent Dormant MISC Agencies (Terengganu) Sdn. MISC (Singapore) Private Limited (formerly known as Leo Shipping Private Limited)* Malaysia Brunei Darussalam Malaysia Malaysia Malaysia Netherlands Netherlands – 100 65 100 – 100 100 100 100 65 100 100 100 100 Australia United Kingdom 100 100 100 100 Shipping agent Shipping agent Japan Malaysia Singapore 100 100 100 100 100 100 Port and general agent Dormant Shipping agent MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Bhd. Bhd. * MISC Agencies (Sarawak) Sdn. * MISC Agencies (Australia) Pty. Bhd. Bhd. * MISC (Japan) Ltd. * Scheepvaartagentuur Nederland Oversee B.V. Bhd. Bhd. ^ MISA (B) Sdn.V. Bhd. Bhd. MISC Agencies Sdn. MISC Information Technology Sdn. ^ MISC Agencies (Netherlands) B. * MISC Ferry Services Sdn.) Ltd. SUBSIDIARIES AND ACTIVITIES (CONTINUED) Country of Incorporation Liberia Liberia Liberia Liberia Malaysia Malaysia Effective Interest (%) 2004 2003 100 100 100 97 100 100 100 100 100 97 100 100 Name of Company Humanity Shipping Limited Torrent Shipping Limited Luminous Shipping Limited Roseland Shipping Limited MISC Enterprises Holdings Sdn. * Malaysia International Shipping Corporation Agencies (U.K.173 38. MISC Properties Sdn. Ltd.
Bhd.174 Notes To The Financial Statements (continued) 38. ship repairing and engineering works Hiring and chartering of tugboat and pushers Processing of copper grit Malaysia Malaysia 100 51 75 51 Asia LNG Transport Dua Sdn. MISC Trucking and Warehousing Services Sdn. Malaysia 51 51 Malaysian Maritime Academy Sdn.* Malaysia Towage and Transport Sdn.* MSE Corporation Sdn. Bhd. SUBSIDIARIES AND ACTIVITIES (CONTINUED) Country of Incorporation Singapore Malaysia Malaysia Effective Interest (%) 2004 2003 51 100 100 51 100 100 Name of Company Leo Launches Private Limited * MISC Integrated Logistics Sdn. Bhd.* Malaysia Shipyard and Engineering Sdn. Bhd. Bhd. Bhd. Bhd. Bhd. Asia LNG Transport Sdn. Principal Activities Launch operator Integrated logistics services Trucking. warehousing and forwarding services Container haulage Shipowning and ship management Shipowning and ship management Education and training for seamen and maritime personnel Shipping Shipping Shipping Shipping Shipping Shipping Investment holding Shipbuilding. Malaysia 70 70 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 Intan Dua (L) Private Limited MSE Holdings Sdn. Bhd. MISC Haulage Services Sdn. Bhd.* Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia 100 100 100 100 100 100 65 65 100 100 100 100 100 100 43 43 Malaysia 65 43 Malaysia 65 43 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
Ltd.* AET Holdings (L) Pte. Bhd. Ltd. oil and gas and power generation plants Dormant Malaysia Tank Cleaning Company Sdn.* Trilithon Shipping Pte.* Eagle Shipmanagement Pte. Ltd.175 38. Bhd.* Principal Activities Sludge disposal management Process equipment for petrochemical.* 100 – MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Inc.* 100 – Offshore Marine Services. Inc. Limited* Malaysia 65 43 Malaysia Bermuda 100 100 – – Investment holding Investment holding and marine transportation services Shipping agent and lightering American Marine & Offshore Services Limited * American Eagle Tankers Agencies Inc. SUBSIDIARIES AND ACTIVITIES (CONTINUED) Country of Incorporation Malaysia Malaysia Effective Interest (%) 2004 2003 65 58 26 38 Name of Company Techno Indah Sdn.* MTL Petrolink Corporation* Singapore Singapore Singapore Singapore The United States of America The United States of America The United States of America 100 100 100 100 100 – – – – – OMIP. Bhd. Inc. Ltd.* Cayman Islands 100 – The United States of America The United States of America United Kingdom 100 – Shipping agent and lightering Pelican Offshore Services Company. American Eagle Tankers Inc. Ltd.* Crystal Shipowning Pte.* 100 – Lightering American Eagle Tankers UK Limited * 100 – Management services and commercial operations Shipping Shipping Shipping Ship management Marine transportation services and lightering Ship rental services and lightering Lightering Trilith Shipping Pte.* MSE-ATB Sdn.
Transasia Pool Pte. Bhd. Inc. Channel Island Sri Lanka China 37 25 37 25 Transware Logistics (Pvt) Ltd. * ^ 60 – Dormant Audited by firms of auditors other than Ernst & Young In the process of liquidation 39.176 Notes To The Financial Statements (continued) 38.* 100 – Lightering MISC Nigeria Ltd.* Principal Activities Lightering Neulink. Ltd. Titar Travel Sdn. SUBSIDIARIES AND ACTIVITIES (CONTINUED) Country of Incorporation The United States of America The United States of America Nigeria Effective Interest (%) 2004 2003 100 – Name of Company Harlink. MISC Agencies (Thailand) Company Limited MISC Agencies Lanka (Pvt) Ltd. Ltd. ASSOCIATED COMPANIES AND ACTIVITIES Country of Incorporation Liberia British Virgin Islands Singapore Malaysia Singapore Thailand Sri Lanka Effective Interest (%) 2004 2003 50 – 50 – 50 49 40 50 50 50 50 50 49 40 Name of Company Olivier Shipping Limited Yuasa Investment Limited Transware Distribution Services Pte. Voray Holdings Limited 25 25 25 25 Inland container depot Investment holding MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Inc. Principal Activities Shipowning Shipping Warehousing Travel agent Ship management Shipping agent Shipping agent and freight forwarding services Merchant banking Investment holding Affin Merchant Bank Berhad Moor Industrial Transport Limited Malaysia Jersey.
for a purchase price of USD445 million (equivalent to RM1. the Corporation disposed enbloc. Bhd. Ltd. As a result. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .199. Bhd. the Corporation through its wholly-owned subsidiary entered into an agreement with Neptune Orient Lines Ltd. ("MSE"). The disposal was completed on 13 May 2004. Ltd.. ("MHS"). As a result. Bhd. a petroleum tanker company. Mapak Edible Oil Pte. MSE became a subsidiary of the Corporation.000.000) and upwards. MHS became a wholly-owned subsidiary of the Corporation. Ltd. 41. The acquisition was completed on 17 March 2004. Malaysia Pakistan Venture Sdn. representing 25% equity interests in MHS for a total cash consideration of RM19. (v) On 30 March 2004. Bhd.260.000. The acquisition was completed on 19 May 2003.177 39. The proceeds were used to fund the acquisition of 100% interest in American Eagle Tankers Inc. the Corporation entered into a sale and purchase agreement with Kuok Brothers Sdn. and IMC Enterprises Incorporated to acquire an additional 22% equity interest in MSE Holdings Sdn. an associated company of the Corporation for a total consideration of RM115. (iv) On 18 December 2003. MISC Integrated Logistics Sdn.000 ordinary shares of RM1 each in MISC Haulage Services Sdn. (ii) (iii) On 16 July 2003. Tianjin Voray Bulking Installation Co.500. Ltd. 40. the Corporation signed an agreement for USD830 million 364 day bridging loan facility with a consortium of international and domestic financial institutions. Limited.000 (equivalent to RM202. 15 bulk vessels owned and operated by the Corporation and its subsidiary for a total consideration of USD98 million resulting in a gain of USD84 million. to acquire 10. ASSOCIATED COMPANIES AND ACTIVITIES (CONTINUED) Country of Incorporation China Effective Interest (%) 2004 2003 15 15 Name of Company Hubei Zhong Chang Vegetable Oil Co. On 29 April 2003. Bhd.000. Bhd. SIGNIFICANT EVENTS (i) Principal Activities Vegetable oil refinery China China Malaysia Pakistan Pakistan 6 13 25 19 16 6 13 25 19 16 Vegetable oil refinery Storage of vegetable oil Investment holding Storage of edible oil Dormant On 5 November 2002. COMPARATIVE FIGURES The presentation and classification of items in the current year financial statements have been consistent with the previous financial year. Mapak Qasim Bulker Pte.388.691 million) as adjusted upwards in net assets at completion date of USD53. a wholly-owned subsidiary of the Corporation entered into a sale and purchase of shares agreement with Faber Haulage Sdn. by reference to an "earn out" mechanism based on the performance of AET over a period of 24 months following the completion date on 22 July 2003. Limited ("AET"). Ltd. for the acquisition of 100% interest in American Eagle Tankers Inc. Beijing King Voray Edible Oil Co.
24.336 1.336 16. 12.967 57.719 72.575 105.110 62.949 57.123 107.588 9.074 Gross Tonnage 93.220 9. 2. 6. 42.169 107.999 107.500 161. Bunga Kasturi Bunga Kelana Satu Bunga Kelana Dua Bunga Kelana 3 Bunga Kelana 4 Bunga Kelana 5 Bunga Kelana 6 Bunga Kelana 7 Bunga Kelana 8 Bunga Kenanga Quasar Eagle Virginia Eagle Vermont Eagle Charlotte Eagle Columbus Eagle Albany Eagle Anaheim Eagle Atlanta Eagle Tacoma Eagle Trenton Eagle Tucson Eagle Tampa Eagle Toledo Eagle Phoenix Eagle Austin Eagle Augusta 2003 1997 1997 1998 1999 1999 1999 2004 2004 2000 1989 2002 2002 1997 1997 1998 1999 1999 2002 2003 2003 2003 2003 1998 1998 1999 299.156 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .719 62. 41.214 1.160 107.256.123 107.160 107.205 80. 4.788 105. 36 37.017 58.166 58. 20. 9.205 86. 23. 11. 17.017 57.929 57.719 62.127 105. 34.719 62.197 306.166 58. 14.346 80.811 105.815 105.346 58.038 94. 39.110 76.166 58.123 107.999 306.346 16.233 161.092 106. 3.500 105.160 107.446 86.794 Crude Oil Tankers 18.719 62.083 72. 29.038 93.426 105. 32.588 71.949 57.929 57.017 57. 30. 22.005.083 71.096 97. 15. 5. 19.083 72. 21.929 58. Name of Vessel Puteri Intan Satu Puteri Delima Satu Puteri Nilam Satu Puteri Zamrud Satu Puteri Intan Puteri Delima Puteri Nilam Puteri Zamrud Puteri Firus Tenaga Satu Tenaga Dua Tenaga Tiga Tenaga Empat Tenaga Lima Aman Bintulu Aman Sendai Aman Hakata Year Built 2002 2002 2003 2004 1994 1995 1995 1996 1997 1982 1981 1981 1981 1981 1993 1997 1998 Deadweight (Metric Tonnes) 76.110 76. 31. 10. 28.017 57.346 80. 8.166 58.205 86.233 57. 38. 43.205 86.178 List Of Vessels As At 30 June 2004 Excluding FPSO facility Bunga Kertas Type of Vessel Liquefied Natural Gas Carriers 1.345 156.220 9. 16.500 73. 13. 25. 33. 40.999 105.037 52.399 16.017 57.446 94.017 57.205 86.110 76.169 107.346 80.166 56.194 58.346 80.784 105. 27. 26. 35.156 58.194 40.967 105.123 107. 7.
999 3. 50.504 52. Name of Vessel Eagle Memphis Eagle Milwaukee Eagle Auriga Eagle Baltimore Eagle Beaumont Eagle Birmingham Eagle Boston Eagle Subaru Eagle Otome Eagle Centaurus Eagle Carina Eagle Corona Year Built 1987 1987 1993 1996 1996 1997 1996 1994 1994 1992 1992 1993 Deadweight (Metric Tonnes) 104. 77.328 95. 48 49.448 99. 75. 45. 71.799 Chemical Tankers 64.405 99. 73.116 22.130 9. 68.974 29.924 16.980 29.025 8.456 52.053 2.456 57.352 10.951 9.456 57.504 52.316 LPG Carriers 61. 57. 63.483 53. 47. 72.639 95.033 6. 62.634 4.581 46. 54.663 95.453 18.179 Type of Vessel Crude Oil Tankers (continued) 44.373 261.962 57. 76.116 18.483 55.995 29. 52.025 70.453 18.496 2.116 22.975 31. Konsep Maju Bunga Kekwa Pernas Butane 1995 1995 1992 4.378 12.905 Product Tankers 56.456 57.127 32.343 99.928 16.545 22.621 395.967 31. 59. 78.932 6.453 18.504 52.981 31.675 95.438.994 5.782 3. 55. Bunga Melati Satu Bunga Melati Dua Bunga Melati 3 Bunga Melati 4 Bunga Melati 5 Bunga Melati 6 Bunga Melati 7 Bunga Anggerik Bunga Tanjung Bunga Mawar Bunga Cenderawasih Bunga Semarak Bunga Siantan Bunga Melawis Satu Bunga Melawis Dua 1997 1997 1999 1999 1999 2000 2000 1989 1991 1990 1990 1990 1991 1997 1997 32.644 95. 66.345 Gross Tonnage 53. 69.504 2.544 6. 70.213 10.983 31. 51. Bunga Kekaras Bunga Kerayong Bunga Kemiri Bunga Kasai Pernas Rantau 1995 1994 1995 1994 1994 29.990 18. 67. 65. 58.352 99.581 3.499 104.116 22. 46.951 3.116 22.254 22.972 29.924 9.254 22.110 20.453 9.169 31.265 4.505.385 102. 53.951 6. 74. 60.504 52.719 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
85.561 23.613 24. 98. 100.288 10. 80. Bunga Saga Satu Bunga Saga Dua Bunga Saga Tiga Bunga Saga Empat Bunga Saga Lima Bunga Saga Enam Bunga Saga Tujuh Bunga Saga Lapan Bunga Saga 9 Bunga Saga 10 Pernas Amang 1993 1993 1994 1994 1998 1998 1998 1998 1999 1999 1986 73.339 21.612 8.574 23.036 8.972 38.215 7. 110. 108.313 537.215 17.582 39.957 9.661 8.582 21. 89.580 24.498 73.215 17.517 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . 83. 87.380 8. 94.215 17. 113.339 17.148 64.325 10.180 List Of Vessels (continued) Type of Vessel Containerships 79. 96.858 48.012 39. 91.012 38.858 39.084 Panamax Bulk Carriers 103.503 73.489 38.972 36.554 24.339 21.521 53. Name of Vessel Bunga Pelangi Bunga Pelangi Dua Bunga Raya Satu Bunga Raya Dua Bunga Teratai Bunga Teratai Dua Bunga Teratai 3 Bunga Teratai 4 Bunga Terasek Bunga Delima Bunga Kenari Bunga Bidara Bunga Mas Satu Bunga Mas Dua Bunga Mas Tiga Bunga Mas Empat Bunga Mas Lima Bunga Mas Enam Bunga Mas Tujuh Bunga Mas Lapan Bunga Mas 9 Bunga Mas 10 Bunga Mas 11 Bunga Mas 12 Year Built 1991 1995 1998 1998 1998 1998 1998 1998 1991 1990 1991 1990 1995 1995 1995 1996 1997 1997 1997 1998 1998 1998 1998 1999 Deadweight (Metric Tonnes) 61.012 39. 93.127 73.998 7. 81. 82.379 39.518 11.250 12.012 39.612 444. 107.944 797.496 73.380 9. 95.489 38.034 11. 102.515 73. 88.998 8.244 24.064 11. 99. 109.207 73.009 Gross Tonnage 53.056 73.998 8.777 61.220 73.957 8. 92.998 7.569 424.692 23.957 8. 97. 111.998 7. 86.064 11. 104.144 73.339 21. 101.998 8.489 38. 105.584 23.428 47.995 12. 90. 112. 106.489 38.957 8. 84.
245 43.427 5.652 27.108 43.550 24.000 26.548 5. 134.550 225. 124.041 16.498 25. 135.550 24.888 252.128.498 25.108 388. 122.055 5. 120.207 18.772 27.632 32.108 43.498 24. 136.550 24. 131.189 43. 125.833 16. 129 130.041 16. Name of Vessel Bunga Orkid Satu Bunga Orkid Dua Bunga Orkid Tiga Bunga Orkid Empat Bunga Orkid Lima Bunga Melor Satu Bunga Melor Dua Bunga Melor Tiga Bunga Melor Empat Year Built 1994 1994 1994 1995 1995 1994 1995 1995 1995 Deadweight (Metric Tonnes) 43.367. 119.977 Multi-Purpose Bulk Carriers 138. 121.055 7.690 Handysize Bulk Carriers 123. 118. 126. 117.548 Total Tonnage of MISC owned vessels: 8.349 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . 115.125 43.498 25. Pernas Proton 1987 7.411 24.652 26.216 43. Handy Tiger Handy Trader Handy Ruby Handy Emerald Handy Islander Handy Gunner Handy Roseland Happy Venture Nerano Pacific Mattsu Pacific Selesa Marquisa Gangga Nagara Sea Maestro Sea Maiden 1985 1985 1986 1986 1985 1995 1996 1996 1986 1996 1997 1997 1998 1997 1998 38.516 27.504 Gross Tonnage 25.888 15. 127.041 16.189 43.411 26.181 Type of Vessel Handymax Bulk Carriers 114. 116. 137.987 16.498 25.216 43.516 26.041 18.128 24.111 24.582 16.516 26.110 411.041 15.582 15.648 26.888 15. 128. 132 133.847 16.070 15.587 26.662 23.
631 30.471.600 41. 150.034 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .669 93.060 70.798 222.502 31. MMM Galveston 1990 7.622 156.499 126.135 56. 144.400 986. 151.230 90. 141. 152.178 53.308. Camden Bourgogne Glenross Lochness Sanko Brave Sanko Bright 1990 1996 1993 1994 2003 2003 298.182 List Of Vessels (continued) Type of Vessel Name of Vessel Year Built Deadweight (Metric Tonnes) Gross Tonnage Inchartered Vessels Liquefied Natural Gas Carriers 139.811 71.360 38.135 53.685 Total Tonnage (including inchartered vessels): 9.513 6.306 296. 145.000 93.899 96.798 Crude Oil Tankers 142.343.332 4.086 940.489 Containerships 149. 140.973 32.348 Total tonnage of inchartered vessels: 1.403 23. 147.400 56.050 Chemical Tanker 148.607 105.679 90. 143.802 161.843 115.400 105. Kota Jati Pacific Quest Order Trader Cape Charles 2000 1983 1998 1986 24.899 283.400 537.463 18. 146. Golar Winter Galicia Spirit Methane Princess 2004 2004 2002 80.
560 Cargo cum 13 Office Complex and Container Yard 48.427.00 3. Selat Klang Utara 42008 Pelabuhan Klang Selangor Darul Ehsan Lot 8 Lebuh Hishamuddin Satu (Kaw 20) Komplek Industri Baru P.221.N. Lebuh Sultan Mohamad 1 Bandar Sultan Suleiman 42008 Port Klang Selangor Darul Ehsan Land Freehold 63.083 MISAN Head Office 25 2. Tgkt. 7 Lorong Merpati 1 Jalan Bukit Sekilau Taman Tas Mahkota 25200 Kuantan Pahang Darul Makmur Blok-H.300.54 6.117 Vacant 21 111. Selat Klang Utara 42008 Pelabuhan Klang Selangor Darul Ehsan Lot 23.99 4. Office Building Freehold 262.K. Age of Bldg.S. Office Building & Warehouse Leasehold/ 2086 191.K.872. Land.N.000. Repair Shed & Container Yard Double Storey Semi-Detached House Leasehold/ 2089 2. Office Building.249.51 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Warehouse & Container Yard 20 3. Approx. No. 2 Jalan Conlay 50450 Kuala Lumpur Lot 10 Lebuh Hishamuddin Satu (Kaw 20) Komplek Industri Baru P. Land./Land (Years) Net Book Value (RM) Location Description Existing Use 1. 1 Mount Pleasure Apartment 12000 Batu Feringghi Pulau Pinang Westplein 6-7 3016 BM Rotterdam Holland Freehold 4.729.882.815. 2 Jalan Conlay 50450 Kuala Lumpur Wisma MISC No.836. Apartment Freehold 1. Workshop.48 183 Properties Owned By MISC Bhd And Its Subsidiaries As At 31 March 2004 Tenure & Year Lease Expires Area in sq.78 7.011.853 Container Yard 13 1.300 Rented 24 164.461.289. Land & Container Yard Leasehold/ 2086 147.500 Rented 28 13.76 8.212.600 Rented 30 22. ft. 7 Unit No. Warehouse.317.00 2.50 5. Office Building Freehold 8.296 MISA Head Office. No.S.
00 12.00 Land & Container Yard Leasehold/ 2087 1.872.799.268.248. Repair Shed & Container Yard Land. 231 The Collonades Porchester Square Bayswater London W2 6AS 10.287 Cargo cum.913. Office Building.00 Land.610. Plot 2 P.T.933. Seksyen 7. Office Complex & Container Yard 11 17.786. Lot PLO 137 & 138 Tebrau II Industrial Estate Johor Darul Takzim Apartment Leasehold/ 2073 817 For Staff 12 602.389.326 Office Building & Container Yard 12 1.S (D) 48445 No.00 Land. Lot 568-615 Mukim 16 Daerah Seberang Perai Utara Pulau Pinang Leasehold/ 2091 241. P.184 Properties Owned By MISC Bhd And Its Subsidiaries (continued) Location Description Tenure & Year Lease Expires Area in sq.825. Jalan Keluli 3 Kaw.702./Land (Years) Net Book Value (RM) 9.978 Vacant Land 8 25.00 Land Leasehold/ 2097 1.800 Office Building & Container Yard 9 2. Warehouse. Office Building.T. Lot 36.752 Cargo cum Office Complex & Container Yard 12 24.877.367. Seksyen 14 Shah Alam Selangor Darul Ehsan 16. Office Building & Container Yard Freehold 752.00 14. Precint 3.00 Land Leasehold/ 2099 107.063. Warehouse.00 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Existing Use Approx.725. Workshop.492 Vacant Land & Container Yard 13 10. H. Age of Bldg. 2113 Air Keroh Industrial Estate Melaka 13. 23991 Mukim Kapar Daerah Klang Selangor Darul Ehsan 11.8.860. Perindustrian Pasir Gudang Mukim Plentong Johor Darul Takzim 15. PLO 516. Repair Shed & Container Yard Land & Container Yard Leasehold/ 2023 894. ft.119.413 Vacant Land 8 10. Workshop. Fasa 1A Pulau Indah Industrial Park (West Port) Pelabuhan Klang Selangor Darul Ehsan Leasehold/ 2025 217.
000 MISA Agencies Kota Kinabalu Office 10 1.800 Vacant Land Vacant Land Rented 8 8 7 271.800 Vacant Land 3 1.500 10 2.454.196 2.00 Land.564.00 Land Leasehold/ 2062 217.325.636.75 271. Existing Use Approx.219. Land in Kuching Section 66 Tanah Daerah Pekan Kuching a) Lot 1411 b) Lot 2115 Office Building Leasehold/ 2990 10. Albert Squar e 37-39 Albert Road Melbourne 3004 Australia 20.695.381./Land (Years) Net Book Value (RM) 17.00 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Section 9.269. Sarawak a) Land b) Land 3 Storey Shop Office Freehold Freehold Leasehold/ 2094 2. Office Building & Warehouse Leasehold/ 2060 47.381.00 Office Premises Freehold 3.000 MISC Europe Office and MISAL Office MISAU Sydney Office MISAU Melbourne Office 10 3. 18 Jln. 24300 Kemaman Terengganu Darul Iman 25.522 Office Building & Warehouse 4 10.565.095. ft.326.49 a) Land b) Land Leasehold/ 2055 Leasehold/ 2046 227.296 85. Ground and 1st Floor Wisma Takada Jalan Gaya.75 1. Tengku Ampuan Zabedah G 9/G.767 10 1. Australia a) Lot 77 b) Lot 78 23. Suite 40.00 4.196 1.00 22. Lot 77 & 78 North Bank Queen Victoria Street Fremantle. Age of Bldg. Lorong EWAN 88000 Kota Kinabalu 21. No.394.38 Office Premises Freehold 10.431. 447.711. Australia 19. Land in Fremantle. Part of Lot PT 4593 Kawasan Perindustrian Kerteh Mukim Kerteh.987 Vacant Land Vacant Land 7 7 4.595.185 Location Description Tenure & Year Lease Expires Area in sq. Town Quay Wharf Barking Essex London 18.857.01 Office Premises Leasehold/ 2092 6. Kent Street Sydney. Shah Alam Selangor Darul Ehsan 24. Plot 3 Kawasan Perindustrian Kidurong Bintulu. Lot 154.201.641.685.
warehouse workshops and office buildings Leasehold/ 2040 5. PT 12701. Galveston.907 15. 30 shipbuilding and engineering fabrication yards.12 27. Tengku Jaafar Industrial Park 71450 Seremban Negeri Sembilan 29. Age of Bldg.027.92 668. ft.186 Properties Owned By MISC Bhd And Its Subsidiaries (continued) Location Description Tenure & Year Lease Expires Area in sq./Land (Years) Net Book Value (RM) 26. ancillary facilities and office buildings Staff quarters 25 343.K.928 3.415 Workboats Dockage Ltrg Support Operation Vacant Container yard 35 3.) MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Ltd.117.381.573 Shiprepair. USA Land & Office Owned 290. MISAU – MISC Agencies (Australia) Pty.354 Vacant Nil Nil Land Leasehold/ 2044 374. PTD 65615 Mukim Plentong Johor Bahru 32. USA 28.004. MISAL – MISC Agencies (U.093 Vacant Nil Nil Land Leasehold/ 2044 588. PTD 65616 Mukim Plentong Johor Bahru 31. PTD 22805 Mukim Plentong Johor Bahru Land & Office Upgrade of container yard Owned Leasehold/ 2005 188. Sabine Pass.V. PTD 65618 Mukim Plentong Johor Bahru Notes: 4 storey residential flats Leasehold/ 2044 169. shipyard.050 Vacant Nil Nil MISA – MISC Agencies Sdn Bhd MISAN – MISC Agencies (Netherlands) B.531 15 3 314.263.934. Texas. Texas. PTD 65617 Mukim Plentong Johor Bahru 33.618. Existing Use Approx.00 30.00 Land Leasehold/ 2044 698.307.17 Land.609.
Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur P. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur P.misc-bhd. 9GB United Kingdom Tel : 44-20 7987 3130 Fax : 44-20 7987 7642 American Eagle Tankers Inc. Unit Level 13 (E) Main Office Tower Financial Park Labuan Jalan Merdeka 87000 Federal Territory of Labuan Tel : 087-451 688 Fax : 087-453 688 American Eagle Tankers Inc. Box 10371 50712 Kuala Lumpur Malaysia Tel : 603-2273 8088 Fax : 603-2273 6602 Homepage : www. Exchange Tower 2 Harbour Exchange Square Marsh Wall London E14 9GE United Kingdom Tel : 44-(0)207-531-4950 Fax : 44-(0)207-987-7642 MISC GROUP OF COMPANIES WHOLLY-OWNED SUBSIDIARIES (In alphabetical order) AET Holdings (L) Pte. Bermuda USA Tel : 02-6490 0302 Fax : 02-6376 2791 American Eagle Tankers Agencies Inc. Ltd. 098632 Tel : 65-6100 2288 Fax : 65-6376 2791 American Eagle Tankers UK Limited Suite 3. 1 HarbourFront Avenue Keppel Bay Tower #11-05/08 Singapore 098632 Tel : 65-6220 1522 Fax : 65-6271 0817 Malaysia International Shipping Agencies (UK) Ltd. Limited Milner House . Quayside House 13 Town Quay Wharf Abbey Road. 18 Parliament Street Hamilton. Pte Ltd 1 HarbourFront Avenue #11-01 Keppel Bay Tower Singapore 098632 Tel : 65-6100-2288 Fax : 65-6376 2791 Eagle Shipmanagement Pte Ltd 1 HarbourFront Avenue #11-01 Keppel Bay Tower Singapore 098632 Tel : 65-6100 2288 Fax : 65-6376 2791 EBC Assets Ltd-Bermuda EBC Assets Ltd-Liberia EBC Holding Ltd-Liberia EBC Limited-(Bermuda) EBC Shipping Ltd-Bermuda EBC Shipping Ltd-Liberia Level 25. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2051 Fax : 603-2275 2029 Harlink Corp. Koizumi Building. Limited 1 HarbourFront Avenue #11-01 Keppel Bay Tower Singapore.com MISC REGIONAL OFFICES CENTRAL KUALA LUMPUR Malaysia International Shipping Corporation Berhad Level 19. Barking Essex IG11 7AT United Kingdom Tel : 44-181-591 3232 Fax : 44-181-594 0733 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2051 Fax : 603-2275 2029 Crystal Shipowning Co. American Marine & Offshore Services Limited 1900 West Loop South Suite 920 Houston Texas 77027 Tel : 1-832-615-2000 Fax : 1-713-622-2256 Bison Shipping Ltd-Liberia Level 18. Ltd.01 Harbour Exchange Tower 2 Harbour Exchange Square London E14. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2580 Fax : 603-2275 2705 Happy Venture Ltd-Liberia Level 18.O.O. Tokyo 141-0031 Tel : 813-5496 2382 Tlx : 2226618 MISCTK J Fax : 813-5496 2334 EUROPE UNITED KINGDOM Malaysia International Shipping Corporation Berhad (Europe) Suite 3.187 MISC Group Of Companies MISC HEAD OFFICE MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD Level 25. 1900 West Loop South Suite 920 Houston Texas 77027 Tel : 1-832-615-2000 Fax : 1-713-622-2256 MISC (Singapore) Pte. Box 10371 50712 Kuala Lumpur Tel : 603-2273 8088 Fax : 603-2275 3135/2026 FAR EAST JAPAN Malaysia International Shipping Corporation Berhad c/o MISC (Japan) Ltd. 8th Floor 29-1 Nishigotanda 1-Chome Shinagawa-ku.1.
Offshore Marine Services Inc. Ltd. 1. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2051 Fax : 603-2275 2029 Trilith Shipping Pte Ltd Trilithon Shipping Pte Ltd 1 HarbourFront Avenue #11-01 Keppel Bay Tower Singapore 098632 Tel : 65-6100-2288 Fax : 65-6376 2791 PARTLY OWNED SUBSIDIARIES AND ASSOCIATE COMPANIES (In alphabetical order) Asia LNG Transport Sdn. Ltd. P. OMIP Inc. Bhd. Ltd. Bhd. Menara SPK No. Ltd. 1st Floor Bintulu Parkcity Commercial Centre Bintulu. Bhd. Ltd. 3016 BM Rotterdam Netherlands Tel : 31-10-209 2222 Fax : 31-10-209 2299 MISC Agencies Sdn. 22 Jalan Sultan Ismail 56250 Kuala Lumpur Tel : 603-2145 2600 Fax : 603-2145 2700 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Ltd. Puteri Intan Sdn. Tel : 86-10-6799 1510 Fax : 86-10-6799 1214 FPSO Ventures Sdn Bhd Suite 2. Bhd. Bhd. Puteri Zamrud Satu (L) Pte. Box 235 42008 Pelabuhan Klang Selangor Darul Ehsan Tel : 603-3169 6700 Fax : 603-3176 3800 MISC (Japan) Limited Koizumi Building 5th FIoor 1-29-1 Nishigotanda. Asia LNG Transport Dua Sdn. Level 16. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2688 Fax : 603-2275 2091 MISC Integrated Logistics Sdn. Bhd. P R. Level 16. Bhd. Box 146 42008 Pelabuhan Klang Selangor Darul Ehsan Tel : 603-3176 5753 Fax : 603-3176 2857 MISC Capital (L) Ltd Level 23 . Lot 23. Ltd.China . Puteri Firus Satu (L) Pte.188 MISC Group Of Companies (continued) MISC Agencies (Sarawak) Sdn.03. Level 25 .O. Bhd. Utara. P. Puteri Zamrud Sdn. Neulink Corp. Bhd. Bhd. 1900 West Loop South. Puteri Nilam Sdn.31. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2688 Fax : 603-2275 2091 MISC Enterprises Holdings Sdn.O. Suite 40. Shinagawa-ku Tokyo 141-op. Bhd. Ltd. Victoria 3004 Australia Tel : 61-3-9867 6299 Fax : 61-3-9867 6167 MISC Agencies (Netherlands) BV. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 3201 Fax : 603-2275 3209 Puteri Delima Satu (L) Pte. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 3201 Fax : 603-2275 3209 Rhinestone Shipping Ltd-Liberia Safety Shipping Ltd-Liberia Selesa Shipping Ltd-Liberia Level 18 . Leboh Sultan Hishamuddin 1 Bandar Sultan Suleiman Pel. Japan Tel : 81-3-5496 2388 Fax : 81-3-5496 2380 MISC Trucking & Warehousing Services Sdn. 23 Nanyuan Road West Fengtoi District Beijing 100076. 1900 West Loop South. (PTSB) Puteri Delima Sdn. Albert Square 37-39 Albert Road Melbourne. Puteri Firus Sdn. Suite 920 Houston Texas 77027 Tel : 1-832-615-2000 Fax : 1-713-622-2256 Peddler Shipping Ltd-Liberia Level 18. Puteri Intan Satu (L) Pte. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2081 Fax : 603-2275 2182 MISC Haulage Services Sdn. Level 16. Lot 8 & 10. Bhd. Bhd. Bhd. Puteri Intan Dua (L) Pte. Jalan Sultan Mohamed 1 Kawasan Perusahaan PKNS Bandar Sultan Suleiman 42000 Pelabuhan Klang Selangor Darul Ehsan Tel : 603-3176 4188 Fax : 603-3176 1833 MTL Petrolink Corp. 2nd Floor. Suite 920 Houston Texas 77027 Tel : 1-832-615-2000 Fax : 1-713-622-2256 Petronas Tankers Sdn. Level 28 . Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 3201 Fax : 603-2275 3209 Beijing King Voray Edible Oil Co. Puteri Nilam Satu (L) Pte. Westplein 6-7. Lebuh Sultan Mohamed 1 Kawasan Perusahaan Fasa 2 Bandar Sultan Suleiman. No. Lot 23. 1-Chome. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2051 Fax : 603-2275 2029 Pelican Offshore Services Company Inc. 97012 Sarawak Malaysia Tel : 0686-318 311/312/313 Fax : 0686-311 326 MISC Agencies (Australia) Pty.
Bhd.R. Bhd. No. Bhd. Adeyomo Alakija Street Victoria Island Lagos. Box 795 Level Seven. c/o Shield Petroleum Top Floor.O. Sri Lanka Tel : 94-1-348 933-6 Fax : 94-1-348 931 MISC Agencies (Sarawak) Sdn. Bhd. Green Tower. 4th Floor 3656/9-10 Rama 4 Road Klong Toey. Nigeria Tel : 234-1269 3998 Fax : 234-1261 3221 Moor Industrial Transport Ltd-Jersey Level 25. Bhd. Wuhan P. Uni Towers 1.O. Box 31.O.Ltd.O. Pasir Gudang Industrial Area P. 367 3581 Fax : 66-2-367 3586. Bhd. Navam Mawatha Colombo 2. Johor Tel : 607-251 2111 Fax : 607-251 7587 MSE Holdings Sdn. Bhd. Kim Seng Promenade Great World City. 9th Floor.O. Kuala Sungai Baru 78207 Melaka Tel : 606-387 6201-5 Fax : 606-387 6700 Mapak Qasim Bulkers (Pvt. P. Bhd. Ltd. Ltd. 1101. Balai Felda Jalan Gurney Satu 54000 Kuala Lumpur Tel : 603-2692 5335 Fax : 603-2698 2677 Malaysia Shipyard & Engineering Sdn. Box 77 81707 Pasir Gudang. 1. P. Sri Lanka Tel : 94-1 232 577 Fax : 94-1 232 588 Techno Indah Sdn. #07-01 Singapore 237994 Tel : 65-220 1522 Fax : 65-224 2753 Malaysia Pakistan Venture Sdn. Lot 257. 9 Gul Circle Singapore 629565 Tel : 65-861 2345 Fax : 65-861 6451 Trans-ware Logistics (Pvt) Ltd. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2703 Fax : 603-2275 2705 Olivier Shipping Ltd-Liberia Level 18.74200 Pakistan Tel : 92-21-241 2265 Fax : 92-21-241 6791 MISC Agencies Lanka (Pvt) Ltd. China 300452 Tel : 86-22-2570 3079 Fax : 86-22-2570 3086 Voray Holdings Limited 34/F.R. Ltd 5 Temasek Boulevard #12-01 Suntec Tower 5 Singapore 038985 Tel : 65-6336 2233 Fax : 65-6334 0618 Transware Distribution Services Pte. Tianjin P. Level 21. Bhd. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2273 0266 Fax : 603-2273 8916 MSE Corporation Sdn. Bhd.O. Box 77 81707 Pasir Gudang. Pasir Gudang Industrial Area P.1. 1st Floor Jln Chan Chin Ann. 367 3587 MISC (Nigeria) Ltd. 150/1. P. Coriseway Bay Hong Kong. Level 25. c/o MSE Sdn.189 Hubei Zhong Chang Vegetable Oil Co. 150. Box 77 81707 Pasir Gudang. ‘Valiant Towers’ 46/7. Hyson Avenue. Pasir Gudang Industrial Area P. Box 77 81707 Pasir Gudang Johor Tel : 607-251 2111 Fax : 607-251 7587 Malaysia Maritime Academy Sdn. Ltd. Bhd. Bangkok 10110 Thailand Tel : 66-2-367 3558. P. Ltd. Fortune Towers 27/29. Pasir Gudang Industrial Area P. Ding Gong Miao Baisha Zhou Wuchang. c/o MSE Sdn. Bhd. China Tel : 852-2909 5666 Fax : 852-2810 0032 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Nanjiang Road Nanjiang Port Area Tanggu. Johor Tel : 607-251 2111 Fax : 607-251 7587 Malaysia Towage and Transport Sdn.China 430064 Tel : 86-27-8811 4643 Fax : 86-27-8811 4641 Leo Launches Pte. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2580 Fax : 603-2275 2705 MSE-ATB Sdn. Johor Tel : 607-251 2111 Fax : 607-251 7587 Tianjin Voray Bulking Installation Co. Chundrigar Road Karachi . The Lee Gardens 33. c/o MSE Sdn.O.R. Box 549 93100 Kuching Sarawak Tel : 60-82-411 324 Fax : 60-82-412 286 MISC Agencies (Thailand) Co. Pamunugama Road Tudella. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Tel : 603-2275 2051 Fax : 603-2275 2029 Transasia Pool Pte.) Ltd. 2000. Ja-Ela. No.
5. To approve the Director’s fees for the financial year ended 31 March 2004. 2. at Nirwana Ballroom I.190 Notice Of Annual General Meeting Notice is hereby given that the Thirty-fifth Annual General Meeting of members of Malaysia International Shipping Corporation Berhad will be held on Thursday. 6. To re-appoint Messrs. 50250 Kuala Lumpur. Jalan Sultan Ismail.m. To declare a final dividend of 15 sen per share and a special dividend of 10 sen per share (Malaysian Income Tax exempted) in respect of the financial year ended 31 March 2004. To receive and adopt the audited financial statements for the financial year ended 31 March 2004 and the Reports of the Directors and Auditors thereon. 3. for the following purposes:As Ordinary Business: 1. 12 August 2004 at 11. Mutiara Hotel Kuala Lumpur. Lower Lobby. Ernst & Young as auditors of the Company and to authorise the Directors to fix their remuneration. To re-elect the following Directors:Retiring pursuant to Article 95 Dato’ Halipah binti Esa Dato’ Shamsul Azhar bin Abbas Retiring pursuant to Article 97 Dato Sri Liang Kim Bang 4.00 a. To transact any other ordinary business of which due notice has been given. MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) .
a. on 15 August 2004 in respect of securities exempted from mandatory deposit. 50050 Kuala Lumpur not less than 48 hours before the time appointed for holding the Meeting. The form of proxy must be deposited at the Registered Office of the Company at Level 25. Shares transferred into the Depositor’s securities account before 4.m. Menara Dayabumi. 2. By Order of the Board Fina Norhizah binti Baharu Zaman Company Secretary Kuala Lumpur Date: 21 July 2004 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . the proxy appointed must be in accordance with its Memorandum and Articles of Associ a tion and the i nstru ment appointing a proxy shall be given under the Company’s Common Seal or under the hand of an officer or attorney duly authorised.30 p.191 Notice of Dividend Entitlement and Payment Notice is hereby given that subject to the approval of Members at the Annual General Meeting to be held on 12 August 2004. In the case of a Corporate Body. b. on a poll. a final dividend of 15 sen per share and a special dividend of 10 sen per share (Malaysian income tax exempted) for the financial year ended 31 March 2004 will be paid on 30 August 2004 to Depositors whose names appear in the Record of Depositors on 17 August 2004. 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. Shares deposited into the Depositor’s securities account before 12. Shares bought on Bursa Malaysia Berhad (“The Bursa”) on a cum entitlement basis according to the Rules of The Bursa. Jalan Sultan Hishamuddin. 1965 shall not apply to the Company . and 3. to vote in his stead. c.m.00 p. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and. on 17 August 2004 in respect of transfers. A Depositor shall qualify for entitlement to the dividend only in respect of:- Notes: 1.
Details of attendance at Board meetings held in the Financial Year ended 31 March 2004.28(2) Of The Listing Requirements Of Bursa Malaysia Berhad 1. Directors who are standing for re-election. Board Meetings Board of Directors Meetings attended Tan Sri Dato Sri Mohd Hassan bin Marican Dato’ Hj. Ismail Tan Sri Dato’ Seri Dr. Menon 5 5 5 3 5 2 4 Maximum possible to attend 5 5 5 5 5 2 5 Board Audit Committee Maximum possible to attend – – 4 4 4 – 4 Meetings attended – – 3 2 4 – 4 MALAYSIA INTERNATIONAL SHIPPING CORPORATION BERHAD (8178-H) . Harry K.192 Statement Accompanying Notice Of Annual General Meeting Pursuant To Paragraph 8. Director who is retiring by casual vacancy pursuant to the Articles of Association. Hussain Dato’ Hamzah bin Bakar Mr. Hj. Mohd Ali bin Hj. Dato Sri Liang Kim Bang Dato’ Halipah binti Esa Dato’ Shamsul Azhar bin Abbas 4. Dato Sri Liang Kim Bang 2. Dato’ Halipah binti Esa Dato’ Shamsul Azhar bin Abbas 3. A total of five Board meetings were held during the financial year ended 31 March 2004 as follows:Date of Meeting 27 May 2003 7 July 2003 26 August 2003 12 November 2003 25 February 2004 Board of Directors Board of Directors Board of Directors Board of Directors Board of Directors 5. Yasin Dato Sri Liang Kim Bang Datuk Siti Hadzar binti Mohd. Board meetings held during the Financial Year ended 31 March 2004. Zainul Ariff bin Hj. Director who is retiring by rotation pursuant to the Articles of Association.
3. on the following ordinary resolutions referred to in the notice of Annual General Meeting:Resolution For Against 1 2 3 4 5 6 Unless voting instructions are indicated in the spaces above the proxy will vote as he thinks fit.00 a. No. to vote in his stead. the Chairman of the meeting as my/our proxy to vote for me/us and on my/our behalf at the Thirty-Fifth Annual General Meeting of the Company to be held at Nirwana Ballroom I.Proxy Form I/We of being a member/members of the abovenamed Company. 1965 shall not apply to the Company . .50050 Kuala Lumpur not less than 48 hours before the time appointed for holding the Meeting. 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 Section149(1)(b) of the Companies Act. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and. hereby appoint and/or of and failing the abovenamed proxies. and at any adjournment thereof. Jalan Sultan Ismail. Mutiara Hotel Kuala Lumpur. on a poll. Menara Dayabumi. 12 August 2004 at 11. 50250 Kuala Lumpur on Thursday. Lower Lobby. Jalan Sultan Hishamuddin. of shares held Signed this day of 2004 Signature/Common Seal of Appointor Notes: 1. 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. This form of proxy must be deposited at the Registered Office of the Company at Level 25. the proxy appointed must be in accordance with its Memorandum and Articles of Association.m. In the case of a Corporate Body.
STAMP Company Secretary Malaysia International Shipping Corporation Berhad Level 25. Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Malaysia .
Malaysia. .Design: Johan Design Associates.
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