1999

annual report annual report laporan tahunan 1999

tahunanPuncak n Niaga Holdings a Berhad n u h a t n a r o p a l a water resource

for the 21st century 416087-U Malaysia’s Water Specialist • Pakar Air Malaysia Puncak Niaga Holdings Berhad Puncak Niaga Holdings Berhad Suite 2601-2606, 26th Floor, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03-201 8648 Fax: 03-201 8658 e-mail: [email protected] 416087-U The cover conveys Puncak Niaga’s firm commitment to provide for the present and future water needs of our community. At the same time, it also highlights the i m p o rtance of water consumption and its re l a t e d environmental issues; to bring these further into the public realm for debate and discussion; and thus for Puncak Niaga to play a leadership role in formulating a p roactive, dynamic and integrated water re s o u rc e management strategy, a blueprint for the 21st century.

Hiasan kulit menggambarkan kejituan komitmen Puncak Niaga menyediakan air untuk keperluan rakyat hari ini What final lesson can we derive from our blueprint for dan masa depan, sekali gus menonjolkan betapa water management in the 21st century? Education, pentingnya penggunaan air dan isu-isu yang berkaitan technology, environmental preservation, and co-operation dengan alam sekitar untuk diketengahkan sebagai bahan between the public and private sector, will all contribute debat dan diskusi masyarakat, lantas mendorong Puncak significantly toward achieving our goals. Niaga menampilkan kepimpinannya merumus strategi p e n g u rusan sumber air yang proaktif, dinamik dan Perhaps the final consideration is not a call to action, but bersepadu, satu rangka tindakan bagi abad ke 21. a call to reason. An admonishment to moderation, to forbearance, to ... balance.

We must find and work toward striking a perfect balance between social and economic needs, and the need to sustain our natural re s o u rces and heritage for the generations to come.

Apakah jaminan masa depan kita? Apakah pengajaran yang dapat dimanfaatkan daripada rangka tindakan kita mengenai pengurusan air pada abad ke 21? Pendidikan, teknologi, pemuliharaan alam persekitaran dan kerjasama antara sektor awam dan swasta – gemblengan kesemua faktor ini adalah penting untuk membantu mencapai matlamat kita.

Mungkin pertimbangan muktamad kita bukan seruan untuk bertindak tetapi seruan untuk berfikiran wajar – amalkan sifat kesedarhanaan, kesabaran dan keseimbangan.

Kita mesti mencari dan mencapai keseimbangan paling secocok antara keperluan sosial, ekonomi dan pemeliharaan sumber alam dan warisan kita untuk generasi akan datang. c o n t e n t s k a n d u n g a n

P e rf o rmance Highlights 2 S o rotan Pre s t a s i 2 Financial Calendar 2 Kalendar Kewangan 2 S h a re Perf o rm a n c e 3 P restasi Saham 3 Corporate Pro f i l e 4 P rofil Korporat 4 G roup Corporate Stru c t u re 6 S t ruktur Korporat Kumpulan 6 Company Stru c t u re 7 S t ruktur Syarikat 7 Corporate Information 8 Maklumat Korporat 8

B o a rd of Directors 1 0 Lembaga Pengarah 1 0 Audit Committee 1 4 Jawatankuasa Audit 1 4 Senior Management 20 P e n g u rusan Kanan 2 0

C h a i rm a n ’s Statement 2 7 Kenyataan Pengerusi 2 7 Operations Review 3 5 Tinjauan Operasi 3 5 Corporate Highlights 5 6 S o rotan Peristiwa Korporat 5 6 Corporate Achievements 6 0 Pencapaian Korporat 6 0

Analysis of Share h o l d i n g s 6 1 Analisa Pegangan Saham 6 1 List of Pro p e rt y 6 3 Senarai Hartanah 6 3

Financial Report 6 5 Laporan Kewangan 9 3 Notice of Annual General Meeting 1 2 1 Notis Mesyuarat Agung Ta h u n a n 1 2 2 P roxy Form Borang Pro k s i

Annual General Meeting Mesyuarat Agung Tahunan

10.00 am on 7 June 2000 10.00 pagi pada 7 Jun 2000 Banquet Hall Dewan Banquet Kuala Lumpur Golf & Country Club Kuala Lumpur Golf & Country Club p e r f o r mance highlights

s o r o t a n p r e s t a s i

In RM’000 Dalam RM’000 ...... 1 9 9 9 ...... 1 9 9 8

Balance sheet Lembaran imbangan Fixed assets Aset tetap ...... 1 , 5 6 8 , 0 1 7 ...... 1 , 3 4 0 , 9 4 7 P roject development costs Kos pembangunan pro j e k ...... 217,729 ...... 2 1 9 , 6 2 9 Other non-current assets Lain-lain aset bukan semasa ...... 45 ...... 2 1 , 1 9 6 C u rrent assets Aset semasa ...... 315,010 ...... 4 6 2 , 0 0 4 Total tangible assets Jumlah aset ketara ...... 2,100,801 ...... 2 , 0 4 3 , 7 7 6

Issued and paid up Modal diterbitkan dan c a p i t a l d i b a y a r S h a re capital Modal saham ...... 2 5 0 , 0 0 0 ...... 2 5 0 , 0 0 0 R e s e rv e s R i z a b ...... 3 7 8 , 1 3 8 ...... 2 7 9 , 1 6 7 S h a reholders’ funds Dana pemegang saham ...... 6 2 8 , 1 3 8 ...... 5 2 9 , 1 6 7 Net tangible asset per share Aset ketara bersih sesaham ...... 2 . 4 6 ...... 2 . 0 6

Ratios and statistics Nisbah dan statistik Tu rn o v e r P e ro l e h a n ...... 3 4 7 , 4 7 2 ...... 1 8 3 , 4 1 5 Net profit after tax Keuntungan bersih selepas cukai ...... 9 8 , 9 7 2 ...... 5 7 , 2 2 6 I n t e rest bearing debt Hutang berbeban faedah ...... 1 , 2 6 1 , 3 0 4 ...... 1 , 2 5 2 , 4 8 6

In sen Dalam sen E a rnings per share Pendapatan sesaham ...... 39.59 ...... 2 2 . 8 9 In % of Turnover Perolehan Dalam % Operating pro f i t Keuntungan operasi ...... 28 ...... 3 1 In RM’000 Dalam RM’000 No. of ord i n a ry share s Bilangan saham biasa ...... 2 5 0 , 0 0 0 ...... 2 5 0 , 0 0 0 In times Dalam kali Gearing ratio Nisbah gearan ...... 2 . 0 1 ...... 2 . 3 7 C u rrent ratio Nisbah semasa ...... 1 . 0 8 ...... 1 . 5 7

Financial calendar Kalendar kewangan

Financial year end Tahun kewangan berakhir ...... 31 December D i s e m b e r 1 9 9 9 Announcement of re s u l t s Pengumuman keputusan

1 1/2 year re s u l t keputusan /2 t a h u n as at 30 June 99 (Interim) pada 30 Jun 99 (Interim) ...... 27 August O g o s 1 9 9 9 3 rd quarter re s u l t keputusan suku tahun ketiga as at 30 September 99 pada 30 September 99 ...... 24 November N o v e m b e r 1 9 9 9 4th quarter re s u l t keputusan suku tahun keempat as at 31 December 99 pada 31 Disember 99 ...... 29 Febru a ry F e b ru a r i 2 0 0 0 Audited Accounts Akaun Beraudit ...... 24 April April 2 0 0 0 Announcement of P e n g u m u m a n Composite Issue Terbitan Komposit ...... 12 November N o v e m b e r 1 9 9 9 Published Annual Report Laporan Tahunan yang diterbitkan ...... 23 May M e i 2 0 0 0 Annual General Meeting Mesyuarat Agung Ta h u n a n ...... 7 June J u n 2 0 0 0

2 9 5 9 6 9 7 9 8 9 9 9 5 9 6 9 7 9 8 9 9 9 5 9 6 9 7 9 8 9 9

3 . 8

3 . 6

3 . 4

3 . 2

3 . 0

2 . 8

2 . 6 corporate pr o f i l e

p r ofil korporat

Puncak Niaga Holdings Berhad (PNHB) was incorporated on 7 January 1997 under the Malaysian Companies Act, 1965 as a public company limited by shares. It is an investment holding company with interest in infrastru c t u re activities specialising in water engineering and water related activities.

PNHB was listed on the Main Puncak Niaga Holdings Berhad (PNHB) telah Board of Kuala Lumpur Stock diperbadankan pada 7 Januari 1997 di bawah Exchange (KLSE) on 8 July 1997. Akta Syarikat Malaysia, 1965 sebagai sebuah It is the first water syarikat awam berhad menurut saham. Ia adalah t reatment/supply concession sebuah syarikat pegangan pelaburan yang company to be listed on the berkecimpung dalam aktiviti infrastruktur dengan KLSE under the In f r a s t ru c t u r e pengkhususan dalam bidang kejuruteraan air dan P roject Company g u i d e l i n e s perkhidmatan berkaitan air. issued by the Securities Flocculation tank at SSP2 Tangki pemberbukuan di SSP2 Commission. PNHB telah disenaraikan di Papan Utama Bursa Saham Kuala Lumpur (BSKL) pada 8 Julai 1997. Ia As an investment holding company, PNHB acted as the adalah syarikat konsesi rawatan/pembekalan air listing vehicle for Puncak Niaga (M) Sdn Bhd (PNSB), an pertama yang disenaraikan di BSKL di bawah garis Infrastructure Project Company (IPC). PNSB is the holder panduan Syarikat Projek Infrastruktur yang of two concessions awarded by the Selangor State ditetapkan oleh Suruhanjaya Sekuriti. Government. The first, a Privatisation Cum Concession Agreement (PCCA) awarded on 22 September 1994, Sebagai sebuah syarikat pegangan pelaburan, allowed PNSB to take over, operate, maintain, manage, PNHB berfungsi sebagai badan-tara penyenaraian rehabilitate and refurbish 27 existing water treatment bagi Puncak Niaga (M) Sdn Bhd (PNSB), sebuah plants (WTPs) formerly under the management of the Syarikat Projek Infrastru k t u r. PNSB adalah Selangor Waterworks Department. pemegang dua konsesi yang dianugerahkan oleh Kerajaan Negeri Selangor. Konsesi pert a m a merupakan Perjanjian Penswastaan dan Konsesi (PCCA) yang telah dimeteraikan pada 22 September 1994. Konsesi ini membenarkan PNSB mengambil alih, mengendali, menyenggara, m e n g u rus, membaik pulih dan melengkapkan semula 27 buah loji pembersihan air sedia ada yang sebelum ini diuruskan oleh Jabatan Bekalan Air (JBA) Selangor.

Our Vision Wawasan Kami To be the leading and dynamic integrated water services company Menjadi syarikat perkhidmatan air bersepadu yang dinamik dan terunggul

4 Konsesi kedua adalah Perjanjian Pembinaan dan Operasi (CCOA) yang dimeterai pada 22 Mac 1995 untuk membina, mengusaha, menyenggara dan mengurus sebuah loji baru berkapasiti 950 juta liter sehari (JLH) di Bukit Badong, Selangor. Konsesi ini adalah di bawah Projek Skim Bekalan Air Sungai Selangor Fasa 2 (SSP2) milik Kerajaan Negeri Selangor. Kedua- dua perjanjian PCCA dan CCOA memperu n t u k k a n bahawa dua konsesi berkenaan akan tamat tempohnya pada 31 Disember 2020.

Pada 4 Mei 1997, PNSB telah The second concession, a Construction Cum Operation Agreement mengambil alih Loji Pembersihan (CCOA) was awarded on 22 March 1995, to finance, design, construct, Air Sungai Semenyih di bawah operate, manage and maintain a new 950 MLD (million litres per day) Kontrak Operasi dan Penyenggaraan WTP at Bukit Badong under the State Government’s Sungai Selangor dengan Kerajaan Negeri Selangor. Water Supply Scheme Phase 2 Project (SSP2). Both the PCCA and CCOA Pada 18 Julai 1998, PNSB telah provide for the concessions to expire on 31 December 2020. menandatangani perjanjian dengan Kerajaan Persekutuan bagi pelaksanaan An additional WTP, the Sungai Semenyih WTP was taken over by PNSB kontrak untuk membiayai, mereka on 4 May 1997 under an Operation and Maintenance Contract with the bentuk dan membina Loji Pembersihan Selangor State Government. On 18 July 1998, PNSB and the Federal Air Wangsa Maju. Government finalised the execution of a contract for PNSB to finance, design and construct the Wangsa Maju WTP. Sebagai pemegang konsesi air swasta, PNSB bert a n g g u n g j a w a b menghasilkan air yang dirawat pada tahap kuantiti dan kualiti yang ditetapkan di dalam perjanjian dengan Kerajaan Negeri Selangor. Peranan JBA Selangor pula adalah untuk menguruskan penyaluran air yang dirawat kepada para pengguna di Selangor dan Wilayah Persekutuan Kuala Lumpur.

Aerial view of SSP2 Kini PNSB muncul sebagai pemegang Pemandangan dari atas SSP2 konsesi pembekal air terbesar di Malaysia. Kami mengendali, As a privatised water concessionaire, PNSB is responsible for the m e n g u rus, dan menyenggara 30 production of treated water up to the quality and quantity designated buah loji pembersihan air yang in its agreement with the Selangor State Government. Thereafter, the mempunyai jumlah kapasiti Selangor Waterworks Department manages the distribution of treated pengeluaran purata sebanyak 2,000 water to consumers in the State of Selangor and the Federal Territory JLH. Jumlah ini adalah lebih kurang of Kuala Lumpur. 70 peratus daripada keseluru h a n pembekalan air bersih di Selangor Today, PNSB has become the largest water supply concessionaire in dan Kuala Lumpur, yang mempunyai Malaysia. We operate, manage and maintain 30 WTPs with a total kira-kira lima juta orang penduduk. average production capacity of 2,000 MLD. This volume is equivalent to approximately 70 percent of the overall treated water supply in Selangor and Kuala Lumpur with a combined population of five million.

5 gcorporate r o struu c t up r e s t r uktur korporat

Puncak Niaga Holdings Berhad investment holding and provision of management services pegangan pelaburan dan peruntukan perkhidmatan pengurusan

Puncak Niaga (M) Sdn Bhd 100% operation, maintenance, management, construction and undertaking the rehabilitation and refurbishment of water treatment Unggul Raya (M) Sdn Bhd facilities 100% operation, management, pelaksanaan, pengendalian, maintenance and monitoring the pengurusan, pembinaan dan operation of dams pemulihan serta penyenggaraan kemudahan loji pembersihan air pelaksanaan, pengurusan pengendalian dan pengawalseliaan operasi empangan

Puncak Research Centre Ideal Water Resources Sdn Bhd Sdn Bhd 100% 100% dormant operation, management, maintenance and undertaking the tidak aktif rehabilitation and refurbishment of Sg. Semenyih Water Treatment Plant, Wangsa Maju Water Treatment Plant and SSP2 Phase I Water Treatment Puncak Seri (M) Sdn Bhd Plant 100% pelaksanaan, pengurusan, dormant pengendalian, pembinaan dan pemulihan serta pembaikan Loji tidak aktif Pembersihan Air Sg. Semenyih, Loji Pembersihan Air Wangsa Maju dan Loji Pembersihan Air SSP2 Fasa I k u m p u l a n 6 company str u c t u r e

s t r uktur syarikat Puncak Niaga (M) Sdn Bhd

Executive Chairman Pengerusi Eksekutif YBhg Dato’ Rozali Ismail General Manager Internal Audit Pengurus Besar Audit Dalaman Executive Vice Chairman Sonari Solor Naib Pengerusi Eksekutif Encik Ruslan Hassan Strategic Resource Centre Pusat Sumber Strategik

Executive Director Executive Director Human Executive Director Executive Director Executive Director Project & Business Resources & Administration Operations Corporate Affairs Finance Development Pengarah Eksekutif Pengarah Eksekutif Pengarah Eksekutif Pengarah Eksekutif Pengarah Eksekutif Sumber Manusia Operasi Hal Ehwal Korporat Kewangan Projek dan Pembangunan dan Pentadbiran YM Raja Azhar Raja Ismail Encik Ruslan Hassan Encik Mat Hairi Ismail Perniagaan Encik Ibrahim Ismail Ir Lee Miang Koi Assistant General Manager Penolong Pengurus Besar Syed Danial Syed Ariffin General Manager Project General Manager General Manager General Manager & Business Development Training & Protective Senior Manager Legal Corporate Finance Pengurus Besar Projek Operation Sg Selangor WTP Pengurus Besar Pengurus Besar dan Pembangunan Pengurus Besar Pengurus Kanan Loji Perundangaan Kewangan Korporat Perniagaan Latihan dan Operasi Pembersihan Air Chan Siew Meei Rahana Abdul Rashid Beh Men Huat Keselamatan Sg Selangor Adly Mohamed Mat Azam Hanafiah Plant Manager Sg Semenyih WTP Pengurus Loji Pembersihan Senior Manager Business Assistant General General Manager General Manager Development & Non- Manager Human Air Sg Semenyih Secretarial Finance & Accounts Basar Ishak Revenue Water Resources Management Pengurus Besar Pengurus Besar Pengurus Kanan & Administration Plant Manager Kesetiausahaan Kewangan dan Akaun Pembangunan Penolong Pengurus Wangsa Maju WTP Tan Bee Lian Ng Wah Tar Perniagaan dan Air Besar Pengurusan Pengurus Loji Pembersihan Bukan Hasil Sumber Manusia dan Air Wangsa Maju Ishak Awang Pentadbiran Abdul Rahman Kadir Naemuddin Abdullah General Manager Senior Manager Pengurus Besar Assistant General Senior Manager Project Management Loh Kit Mun Manager Corporate Information Technology Pengurus Kanan Communication Pengurus Kanan Pengurusan Projek Senior Manager Penolong Pengurus Teknologi Maklumat Rusli Zainal Abidin Rehabilitation of WTP Besar Komunikasi Mohd Sabaruldin Che Pengurus Kanan Korporat Bakar Pembaikpulihan Loji Sharidah Pawanteh Senior Manager Pembersihan Air Project Management Nasir Ismail Pengurus Kanan Pengurusan Projek Senior Manager Operations Yusof Badawi Contract Supervision (27WTP) Pengurus Kanan Pengendalian Kontrak & Pengawasan (27 Loji Pembersihan Air) Hashim Omar

Manager Dam Operations Pengurus Operasi Empangan Ahmad Marzuki Hashim

Manager Water Resources & Environmental Pengurus Kajian Sumber Air dan Alam Sekitar Roowina Merican A Rahim Merican

7 corporate infor m a t i o n

maklumat korporat

B o a rd Of Dire c t o r s Date and Place Of Incorporation Lembaga Pengarah Tarikh dan Tempat Diperbadankan YBhg Dato’ Rozali Ismail 7 January 1997 in Malaysia Executive Chairman 7 Januari 1997 di Malaysia (Pengerusi Eksekutif) Encik Ruslan Hassan Company Number Executive Vice Chairman Nombor Syarikat (Naib Pengerusi Eksekutif) 416087-U Executive Director Corporate Affairs Division (Pengarah Eksekutif Bahagian Hal Ehwal Korporat) A u d i t o r s YM Raja Azhar Raja Ismail J u ru a u d i t Executive Director Operations Division Messrs PricewaterhouseCoopers (AF 1146) (Pengarah Eksekutif Bahagian Operasi) Encik Mat Hairi Ismail Tax Advisor Executive Director Finance Division Penasihat Cukai (Pengarah Eksekutif Bahagian Kewangan) PricewaterhouseCoopers Taxation Services Sdn Bhd Ir Lee Miang Koi (464731-M) Executive Director Project & Business Development Division Principal Bankers (Pengarah Eksekutif Bahagian Projek dan Bank-Bank Utama Pembangunan Perniagaan) RHB Sakura Merchant Bankers Bhd (19663-P) YBhg Dato’ Hari Narayanan Govindasamy Arab-Malaysian Merchant Bank Bhd (23742-V) Independent Non-Executive Director RHB Bank Berhad (6171-M) (Pengarah Bukan-Eksekutif Bebas) Encik Abdul Majid Abdul Karim S o l i c i t o r s Independent Non-Executive Director P e g u a m c a r a (Pengarah Bukan-Eksekutif Bebas) Kadir Tan & Ramli Rashid & Lee G roup Company Secre t a ry Setiausaha Syarikat Kumpulan S h a re Registrar Ms Tan Bee Lian, MAICSA 7006285 Pendaftar Saham Tenaga Koperat Sdn Bhd (118401-V) R e g i s t e red Off i c e 20th Floor, IGB Plaza, Jalan Kampar Pejabat Berd a f t a r Off Jalan Tun Razak, 50400 Kuala Lumpur Suite 1401-1406, 14th Floor, Plaza See Hoy Chan Tel: 03- 441 6522 Jalan Raja Chulan, 50200 Kuala Lumpur Fax: 03- 442 6352 Tel: 03-201 8648 Fax: 03-238 4386 C o n s u l t a n t s P e ru n d i n g Principal Off i c e Ranhill Bersekutu Sdn Bhd (72416-V) Pejabat Utama SMHB Sdn Bhd (63281-X) Suite 2601-2606, 26th Floor, Plaza See Hoy Chan Sepakat Setia Perunding Sdn Bhd (14142-M) Jalan Raja Chulan, 50200 Kuala Lumpur Tel: 03-201 8648 Stock Exchange Listing Fax: 03-201 8658 Penyenaraian Bursa Saham website: www.puncakniaga.com.my Main Board Kuala Lumpur Stock Exchange e-mail: [email protected] Papan Utama Bursa Saham Kuala Lumpur

8 The provision of safe and abundant water is becoming m o re difficult and expensive every year. Incre a s e d population and industry demands, coupled with the decline of water resources in proximity to end-users, requires prompt action.

Water conservation, pre s e rvation of catchment are a s , reversing extensive deforestation and the degradation of our rivers are all interconnected problems which need to be addressed urg e n t l y. And most import a n t l y, the government and industry need to work together to devise and implement a sensible, long-term national water management strategy to ensure the preservation and sufficiency of our water resources for the future.

Bagaimana kita mendapat air yang mencukupi? Penyediaan air yang cukup dan selamat semakin susah dan mahal setiap tahun. Pertambahan penduduk dan keperluan industri, diganding pula dengan kekurangan sumber air yang berhampiran dengan pengguna, memerlukan tindakan segera.

Penjimatan air, pemuliharaan kawasan tadahan, pembasmian hutan dan pencemaran sungai kita adalah masalah saling berhubungan yang perlu ditangani segera. Dan paling penting, kerajaan dan industri perlu bekerjasama untuk merangka dan melaksanakan strategi jangka panjang pengurusan air negara yang wajar bagi memastikan pemuliharaan dan kecukupan sumber air untuk masa depan. b o a r d o f d i r e c t o r s

lembaga pengarah

YBhg Dato’ Rozali Ismail Executive Chairman Dato’ Rozali is the founder of PNSB, its Executive Chairman and a substantial shareholder of PNHB. He was appointed to the PNHB Board on 24 April 1997. Upon obtaining a Bachelor of Law Degree from the University of Malaya in 1981, he began his career as Legal Advisor to the Urban Development Authority (UDA) for a period of 5 years before he joined Bank Islam (M) Berhad. Together with a few pioneer bank staff, Dato’ Rozali conceptualised the first institution of Islamic banking in Malaysia. Subsequently, he started his own legal practice as an Advocate & Solicitor for 7 years, specialising in corporate, property and banking work.

In 1989, Dato’ Rozali set up a family YBhg Dato’ Rozali Ismail company and embarked into the Pengerusi Eksekutif p ro p e rty development sector, with Dato’ Rozali adalah pengasas PNSB, Pengerusi Eksekutif dan involvement in several development pemegang saham utama PNHB. Beliau dilantik sebagai ahli Lembaga projects in the Klang Valley, Kuantan Pengarah PNHB pada 24 April 1997. Selepas memperolehi Ijazah and Johor. Under the banner of Bukit Sarjana Muda Undang-Undang dari Universiti Malaya pada 1981, Cerakah Development Sdn Bhd, he is beliau memulakan kerjayanya sebagai Penasihat Perundangan di now actively developing a new Lembaga Pembangunan Bandar (UDA) bagi tempoh selama 5 tahun township known as Bandar Baru sebelum menyertai Bank Islam (M) Berhad. Bersama-sama dengan Puncak Alam. The family company also beberapa kakitangan asas bank, Dato’ Rozali mewujudkan konsep ventured into the utility business in perbankan Islam di Malaysia. Seterusnya, beliau memulakan firma 1989 with the setting up of PNSB. Due guamannya sebagai Peguambela dan Peguamcara selama 7 tahun, to his vast experience in various fields, dengan pengkhususan dalam kerja-kerja korporat, hartanah dan he was entrusted by the State perbankan. Government of Selangor, via PNSB, to manage the water treatment plants for Pada 1989, Dato’ Rozali menubuhkan syarikat keluarganya dan the whole of Selangor and the Federal menceburkan diri dalam sektor pembangunan hartanah dengan Territory of Kuala Lumpur. PNHB was penglibatan di dalam beberapa projek pembangunan di Lembah subsequently incorporated in 1997 as Klang, Kuantan dan Johor. Beliau kini giat membangunkan sebuah the holding company of PNSB and was bandar baru yang dikenali sebagai Bandar Baru Puncak Alam melalui listed on the Main Board of Kuala syarikat Bukit Cerakah Development Sdn Bhd. Syarikat keluarganya Lumpur Stock Exchange on 8 July 1997. juga menceburi perniagaan perkhidmatan awam pada 1989 dengan penubuhan PNSB. Berdasarkan pengalaman beliau yang meluas dalam Currently, Dato’ Rozali is the Executive pelbagai bidang, beliau diberi amanah oleh Kerajaan Negeri Selangor, Chairman and substantial shareholder melalui PNSB, untuk menguruskan loji-loji pembersihan air untuk of U-Wood Holdings Berhad, a Main seluruh negeri Selangor dan Wilayah Persekutuan Kuala Lumpur. Board company which is developing PNHB telah diperbadankan pada 1997 sebagai syarikat pegangan Bandar Puncak Perdana, a 243 hectare PNSB dan disenaraikan di Papan Utama Bursa Saham Kuala Lumpur mixed development project located pada 8 Julai 1997. near the Sultan Abdul Aziz Shah A i r p o rt. He is also the Executive Pada masa ini, Dato’ Rozali memegang jawatan selaku Pengerus i Chairman and substantial shareholder Eksekutif juga pemegang saham utama U-Wood Holdings Berha d , of WWE Holdings Berhad, a Second sebuah syarikat Papan Utama yang sedang membangunkan Bandar Board company which is involved in the Puncak Perdana, sebuah projek campuran seluas 243 hektar yang p rovision of integrated water and be r hampiran dengan Lapangan Terbang Sultan Abdul Aziz Shah. Beliau wastewater engineering services for juga merupakan Pengerusi Eksekutif dan pemegang saham utama WWE both the residential and industrial Holdings Berhad, sebuah syarikat Papan Kedua yang berkecimpung sectors in Malaysia. dalam peruntukan perkhidmatan air dan air kumbahan yang bersepadu untuk sektor perumahan dan sektor perindustrian di Malaysia.

10 From left to right • Dari kiri ke kanan: YBhg Dato’ Hari Narayanan Govindasamy, Ir Lee Miang Koi, YBhg Dato’ Rozali Ismail, En Abdul Majid Abdul Karim, Mdm Tan Bee Lian, En Ruslan Hassan, En Mat Hairi Ismail Not in the picture • Tiada dalam gambar: YM Raja Azhar Raja Ismail

Encik Ruslan Hassan Naib Pengerusi Eksekutif dan Pengarah Eksekutif, Bahagian Hal Ehwal Korporat En Ruslan mula berkhidmat di PNSB pada 1 November 1995 sebagai Ketua Bahagian Hal Ehwal Korporat. Jawatan-jawatan yang disandang beliau ialah sebagai ahli Lembaga PNSB pada 26 Disember 1996, sebagai ahli Lembaga PNHB pada 24 April 1997 dan Naib Pengerusi Eksekutif PNHB pada 6 April 1999. Beliau memulakan kerjayanya sebagai Penasihat Undang-undang di Esso Production Malaysia Inc setelah menamatkan pengajian di Universiti Malaya pada 1981 dengan Encik Ruslan Hassan m e m p e rolehi Ijazah Sarjana Muda Executive Vice Chairman and Undang-undang. Pada 1985 beliau Executive Director, Corporate Affairs Division berkhidmat dengan Pernas Sime Darby En Ruslan joined PNSB on 1 November 1995 as Head of Corporate Holdings Sdn Bhd sebagai Penasihat Affairs Division. His appointments to date are to the PNSB Board on Undang-undang/Setiausaha Syarikat 26 December 1996, to the Board of Directors of PNHB on 24 April Kumpulan. En Ruslan mempunyai 6 tahun 1997 and as the Executive Vice Chairman of PNHB on 6 April 1999. pengalaman sebagai peguambela dan After obtaining a Bachelor of Law Degree from the University of peguamcara. Pada 1993 beliau menyertai Malaya in 1981, he began his career as a Legal Advisor with Esso Rashid Hussain Bhd (RHB) sebagai Production Malaysia Inc. In 1985 he joined Pernas Sime Darby Pengurus Besar Kanan Hal Ehwal Korporat Holdings Sdn Bhd as their Group Legal Advisor/Company Secretary. juga Ahli Jawatankuasa Eksekutif. Baru- En Ruslan has 6 years experience as an advocate and solicitor. In baru ini En Ruslan telah dilantik sebagai 1993 he joined Rashid Hussain Bhd (RHB) as Corporate Affairs pengarah Rashid Hussain Securities Sdn Senior General Manager and Executive Committee Member. Bhd. Beliau juga memegang jawatan Recently, En Ruslan was also appointed to the Board of Rashid Pengarah dan ahli Jawatankuasa Audit Hussain Securities Sdn Bhd. He also sits on the Board of Directors RHB. and Audit Committee of RHB.

11 YM Raja Azhar Raja Ismail Executive Director, Operations Division As a director of PNSB since 17 March 1994, YM Raja Azhar was appointed to the PNHB Board of Directors on 24 April 1997. He obtained an Advanced Diploma in Business Management from the Institute of Commercial Management, United Kingdom. As the Executive Director of the Operations Division, his responsibilities are focused on the maintenance and management of all water treatment plants under the PCCA signed with the Selangor State Government, and development of the SSP2 project under the CCOA. Previously, he was a Loan Executive for Malaysia Building Society Berhad (1983-1984), Manager of Credit and Marketing for DCB Leasing Sdn Bhd (1985-1991) and Director/General Manager of Aliran Resources (M) Sdn Bhd (1991-1994).

Encik Mat Hairi Ismail YM Raja Azhar Raja Ismail Executive Director, Finance Division Pengarah Eksekutif, Bahagian Operasi Appointed to the PNSB Board of Directors on Adalah pengarah PNSB semenjak 17 Mac 1994 dan dilantik 24 May 1994 and then to the PNHB Board on sebagai ahli Lembaga Pengarah PNHB pada 24 April 1997. 24 April 1997, En Mat Hairi is the Executive Beliau memiliki Diploma Lanjutan Pengurusan Perniagaan dari Director, Finance Division and also a member Institute of Commercial Management, United Kingdom. Selaku of PNHB’s Audit Committee. He graduated Pengarah Eksekutif Bahagian Operasi, tanggungjawab beliau from Universiti Kebangsaan Malaysia in 1985 tertumpu kepada penyenggaraan dan pengurusan kesemua loji with a Bachelor in Accounting (Hons) Degree. pembersihan air di bawah PCCA yang ditandatangani dengan In 1985 he started his career as an Accountant Kerajaan Negeri Selangor dan pembangunan projek SSP2 at the Accountant General’s Office in Labuan, dibawah CCOA. Beliau pernah berkhidmat sebagai Eksekutif and from 1989 to 1992 he served at the K redit di Malaysia Building Society Berhad (1983-1984), Malaysian High Commission in London. His Pengurus Kredit dan Pemasaran di DCB Leasing Sdn Bhd (1985- last appointment was with the Langkawi 1991) dan Pe n g a r a h / P e n g u r us Besar Aliran Resources (M) Sdn Development Authority (LADA) (1992-1994) Bhd (1991-1994). before joining PNSB. En Mat Hairi is also an Executive Director and substantial Encik Mat Hairi Ismail shareholder of U-Wood Holdings Berhad, a Pengarah Eksekutif, Bahagian Kewangan Main Board company and WWE Holdings Dilantik sebagai ahli Lembaga Pengarah PNSB pada 24 Mei 1994 Berhad, a Second Board company. dan kemudian sebagai ahli Lembaga Pengarah PNHB pada 24 April 1997. En Mat Hairi adalah Pengarah Eksekutif, Bahagian Encik Abdul Majid Abdul Karim Kewangan juga ahli Jawatankuasa Audit PNHB. Beliau Independent Non-Executive Director memperolehi Ijazah Sarjana Muda Perakaunan (Kepujian) dari A PNSB Director since 17 March 1994, En Universiti Kebangsaan Malaysia pada 1985. Beliau memulakan Abdul Majid was appointed to the PNHB kerjayanya sebagai Akauntan di Pejabat Akauntan Negara di Board on 24 April 1997 as an Independent Labuan pada 1985 dan antara 1989-1992 bertukar khidmat ke Non-Executive Director. He is the Chairman of S u ruhanjaya Tinggi Malaysia di London. Beliau telah P N H B ’s Audit Committee. He obtained a berkhidmat dengan Lembaga Pembangunan Langkawi (LADA) Bachelor of Science (Hons) Degree in Civil (1992-1994) sebelum menyertai PNSB. En Mat Hairi juga Engineering from the University of Glasgow, merupakan seorang Pengarah Eksekutif dan pemegang saham United Kingdom in 1986. He began his career utama U-Wood Holdings Berhad, sebuah syarikat Papan Utama as a Technical Assistant with the Urban dan WWE Holdings Berhad, sebuah syarikat Papan Kedua. Development Authority (UDA) (1982-1983), as P ro p e rty Executive at Boustead Holdings Berhad (1986-1991) and subsequently as Sales Engineer at UAC Berhad (1991-1993).

12 Encik Abdul Majid Abdul Karim Pengarah Bukan-Eksekutif Bebas Dilantik sebagai ahli Lembaga Pengarah PNHB pada 24 April 1997 dan telah berkhidmat sebagai Pengarah PNSB semenjak 17 Mac 1994. Beliau juga selaku Pengerusi Jawatankuasa Audit PNHB. En Abdul Majid memperolehi Ijazah Sarjana Muda Sains (Kepujian) dalam bidang Kejuruteraan Awam dari University of Glasgow, United Kingdom pada 1986. Beliau memulakan kerjayanya sebagai Pembantu Teknik di Lembaga Pembangunan Bandar (UDA) (1982-1983), Eksekutif Hartanah di Boustead Holdings Berhad (1986-1991) dan kemudian sebagai Jurutera Jualan di UAC Berhad (1991-1993).

Dato’ Hari Narayanan Govindasamy Dato’ Hari Narayanan Govindasamy Independent Non-Executive Director Pengarah Bukan-Eksekutif Bebas Dato’ Hari was appointed to the Board of PNHB on 1 Dato’ Hari dilantik sebagai ahli Lembaga Pengarah PNHB July 1999. He is also a member of PNHB’s Audit pada 1 Julai 1999 dan merupakan seorang ahli Committee. He holds a Bachelors Degree in Electrical Jawatankuasa Audit PNHB. Beliau memiliki Ijazah and Electronics Engineering from the Polytechnic of Sarjana Muda dalam Kejuruteraan Elektrik dan Newcastle-upon-Tyne. He is a member of the Institute E l e k t ronik daripada Polytechnic of Newcastle-upon- of Engineers, Malaysia, a Registered Pro f e s s i o n a l Tyne. Dato’ Hari adalah ahli Institut Jurutera Malaysia Engineer with the Board of Engineers, Malaysia and dan Jurutera Profesional berdaftar dengan Lembaga a Director of the Malaysian Highway Board. He also J u rutera Malaysia. Beliau juga berkhidmat sebagai serves as a Director of Tenaga Nasional Berhad and SP Pengarah Lembaga Lebuhraya Malaysia, Pengarah Setia Berhad. Tenaga Nasional Berhad dan SP Setia Berhad.

Ir Lee Miang Koi Ir Lee Miang Koi Executive Director, Pengarah Eksekutif, Project & Business Development Division Bahagian Projek dan Pembangunan Perniagaan Ir Lee joined PNSB in 1995, and is responsible for all Ir Lee mula berkhidmat di PNSB pada 1995 dan aspects of project management and business bertanggungjawab ke atas semua aspek pengurusan development for new water supply projects. Ir Lee p rojek pembangunan perniagaan bagi projek baru was appointed as a Director of PNHB on 1 September bekalan air. Ir Lee dilantik sebagai Pengarah PNHB pada 1999. He graduated as a civil engineer fro m 1 September 1999. Beliau tamat pengajian dalam bidang University of Technology Malaysia in 1978 and in kejuruteraan daripada Universiti Technologi Malaysia 1989 obtained a Masters Degree in Engineering pada 1978 dan pada 1989 memperolehi Ijazah Sarjana majoring in water supply engineering from the Asian Kejuruteraan khusus dalam Kejuruteraan Bekalan Air Institute of Technology in Bangkok. Ir Lee has 23 daripada Asian Institute of Technology di Bangkok. Ir Lee years experience in the water supply sector and has mempunyai 23 tahun pengalaman dalam sektor bekalan held various positions during his tenure with the air dan telah menyandang pelbagai jawatan sewaktu Public Works Department as well as the Waterworks perkhidmatannya di Jabatan Kerja Raya dan Jabatan Department in Malaysia, especially in the field of Bekalan Air di Malaysia terutamanya dalam bidang water supply services. He was a Senior Executive perkhidmatan bekalan air. Beliau adalah bekas Jurutera Engineer in the Design and Planning Department and Eksekutif Kanan di Jabatan Rekabentuk dan also Director of the Negeri Sembilan Waterworks Perancangan dan juga bekas Pengarah Jabatan Bekalan Department (PWD). He left PWD in 1991 to join Air, Negeri Sembilan (JBA). Beliau meninggalkan JBA Ranhill Bersekutu Sdn Bhd, holding positions from pada 1991 untuk berkhidmat dengan Ranhill Bersekutu Senior Engineer to Vice President. Sdn Bhd dimana beliau memegang pelbagai jawatan, b e rmula dengan jawatan Jurutera Kanan sehingga kepada Naib Presiden.

13 audit committee

jawatankuasa audit

Te rms of Refere n c e 1 C o m p o s i t i o n The Board shall elect an Audit Committee from amongst themselves (pursuant to a resolution of the Board of Directors), comprising of at least three (3) directors where the majority of them should not be: i. Executive directors of the Company or any related corporation; ii. A spouse, parent, brother, sister, son or adopted son, daughter or adopted daughter of an executive director of the Company or any related corporation; or iii. Any person having a relationship which, in the opinion of the Board of Directors, would interfere with the exercise of independent judgement in carrying out the function of an audit committee. The members of the Audit Committee shall elect a Chairman from amongst themselves who is not an executive director or employee of the Company or any related corporation. It would be advantageous if the Chairman possesses a strong personality, have knowledge and experience in financial reporting, good leadership skill and is keen to get financial reporting and controls right. All members of the Audit Committee, including the Chairman, will hold office only so long as they serve as Directors of the Company. Should any member of the Audit Committee cease to be a Director of the Company, his membership in the Audit Committee would cease forthwith. It is a desirable for membership on the Audit Committee to be rotated amongst all the Directors of the Company such that each director will serve a period of three (3) years on the Audit Committee. Encik Abdul Majid Abdul Karim If the members of the Audit Committee for any reason be reduced to below Chairman Pengerusi three (3), the Board of Directors shall within three (3) months of that event, appoint such number of new members as may be required to make up the minimum number of three (3) members. Syarat-Syarat Rujukan 1 K o m p o s i s i Lembaga Pengarah akan melantik Jawatankuasa Audit di antara mereka (menurut satu resolusi Lembaga Pengarah), terdiri dari sekurang-kurangnya tiga (3) orang pengarah di mana bilangan majoriti antara mereka bukanlah: i. Pengarah-pengarah eksekutif Syarikat atau mana-mana perbadanan berkait; ii. Seorang isteri atau suami, ibu atau bapa, adik perempuan atau kakak, Encik Mat Hairi Ismail anak lelaki atau anak angkat lelaki atau anak perempuan atau anak Member Ahli angkat perempuan seorang pengarah eksekutif Syarikat atau mana-mana perbadanan berkait; atau iii. Seseorang yang mempunyai pertalian yang mana, mengikut pendapat Lembaga Pengarah, akan menjejaskan pengadilan bebas di dalam menjalankan fungsi-fungsi satu jawatankuasa audit. Ahli-ahli Jawatankuasa Audit hendaklah melantik seorang Pengerusi dari antara mereka yang bukan merupakan seorang pengarah eksekutif atau kakitangan Syarikat atau mana-mana perbadanan berkait. Ianya merupakan satu kelebihan sekiranya Pengerusi berkenaan memiliki personaliti disegani, pengetahuan dan pengalaman dalam pelaporan kewangan, daya kepimpinan yang baik, dan bersungguh-sungguh di dalam mencapai pelaporan dan kawalan kewangan yang betul. YBhg Dato’ Hari Narayanan Semua ahli Jawatankuasa Audit, termasuk Pengerusi, akan memegang Govindasamy jawatan selama mana mereka berkhidmat sebagai Pengarah-pengarah Member Ahli Syarikat. Seandainya seseorang ahli Jawatankuasa Audit tidak lagi menjadi Pengarah Syarikat, keahliannya di dalam Jawatankuasa Audit dengan serta- merta ditamatkan. Adalah dihematkan bahawa keahlian di dalam Jawatankuasa Audit disilihgantikan antara Pengarah-pengarah Syarikat supaya setiap pengarah akan berkhidmat selama tiga (3) tahun dalam Jawatankuasa Audit. Di mana ahli-ahli Jawatankuasa Audit dikurangkan dari tiga (3) orang atas sebarang sebab apapun, Lembaga Pengarah dalam tempoh tiga (3) bulan dari tarikh tersebut, hendaklah melantik sebilangan ahli-ahli baru mengikut keperluan untuk mencukupkan bilangan minimum tiga (3) orang ahli. Mdm Tan Bee Lian Group Company Secretary Setiausaha Syarikat Kumpulan

14 2 O b j e c t i v e s The primary objectives of the Audit Committee are to : i. Provide assistance to the Board in fulfilling its fiduciary responsibilities particularly in the areas relating to the Company’s accounting and management controls, financial reporting and business ethics policies. ii. Provide greater emphasis on the audit function by increasing the objectivity and independence of external and internal auditors and providing a forum for discussion that is independent of the management. iii. Maintain through regularly scheduled meetings a direct line of communication between the Board and the external auditors, internal auditors and financial management. iv. Strengthening the role of non-executive directors by improving their knowledge and understanding of the Company’s operation. v. Undertake such additional duties as may be appropriate and necessary to assist the Board. However, whether or not the Audit Committee should undertake one or more of the additional duties rests on the Board’s viewpoint on corporate needs and the environment in which the Company operates. 2 O b j e k t i f Objektif-objektif utama Jawatankuasa Audit ialah untuk : i. Memberi bantuan kepada Lembaga Pengarah di dalam menunaikan tanggungjawab-tanggungjawab biasanya terutama sekali di dalam hal-hal berhubung kawalan perakaunan dan pengurusan, pelaporan kewangan dan dasar-dasar etika perniagaan Syarikat. ii. Memberi penekanan yang lebih kepada fungsi audit melalui peningkatan objektiviti dan kebebasan juruaudit dalaman dan luaran dan menyediakan forum untuk diskusi yang bebas dari pengurusan. iii. Melalui mesyuarat-mesyuarat yang dijadualkan secara selalu, mengekalkan komunikasi terutama antara Lembaga Pengarah dan juruaudit luaran, juruaudit dalaman dan pihak pengurusan kewangan. iv . Memantapkan peranan pengarah-pengarah bukan-eksekutif dengan mempertingkatkan pengetahuan serta kefahaman mereka berkenaan operasi Syarikat. v. Melaksanakan tugas-tugas tambahan yang mana berpatutan dan perlu bagi membantu Lembaga Pe n g a r a h . Walaubagaimanapun, samada Jawatankuasa Audit perlu melaksanakan atau tidak satu atau lebih tu g a s - t u g a s tambahan bergantung kepada pandangan Lembaga Pengarah bersabit keperluan korporat dan suasana di dalam mana Syarikat menjalankan operasi.

3 Duties and Responsibilities 3 Tugas dan Ta n g g u n g j a w a b In fulfilling its primary objectives, the Audit Di dalam menunaikan objektif-objektif utama, Committee will need to undertake the following Jawatankuasa Audit perlu melaksanakan tugas duties and responsibilities: dan tanggungjawab berikut :- 3 . 1 Oversee All Matters Relating to External and 3 . 1M e m e rhatikan Semua Hal Berhubung Audit I n t e rnal Audit Luaran dan Dalaman. i. Review the annual audit plan with the external i. Menyemak rancangan audit tahunan bersama auditors. The Committee shall meet with the dengan juruaudit luaran. Jawatankuasa external auditors prior to the commencement of akan hadir bersama juruaudit luaran the annual audit to discuss : sebelum bermulanya audit tahunan untuk - The general outline of the extent and timing membincangkan:- of the auditors’ proposed coverage of location - Garispanduan am sejauh mana tahap serta such as branches, departments, factories, waktu cadangan peliputan lokasi sepert i divisions and subsidiaries. cawangan, jabatan, kilang, bahagian dan anak - The nature of the audit procedures to be syarikat oleh juruaudit. pe rf o rm e d . - Bentuk pro s e d u r- p rosedur audit yang akan - The extent of any planned reliance on the dilaksanakan. work of the internal auditors and the - Sejauh mana tahap sebarang kebolehperca y a a n anticipated effect of this reliance on the terancang terhadap bidang kerja juru a u d i t examination. dalaman dan kesan dijangka dan - Any significant accounting and auditing ke b o l e h p e r cayaan ini ke atas pemeriksaan. problems that the auditors can foresee. - Sebarang masalah perakaunan dan - The impact on the financial statements of any pengauditan yang ketara yang boleh new or proposed changes in accounting diramalkan oleh jurua u d i t : standards or regulatory requirements. - Kesan ke atas penyata-penyata kewangan dari - The effect on the audit of significant data sebarang perubahan baru atau dicadangkan di processing systems. dalam piawaian perakaunan atau syarat-syarat kawalselia. Following review of the plan, the Audit Committee - Kesan ke atas audit sistem-sistem pemerosesan may request the external auditors to perform data yang penting. additional audit work directed to specific areas of concern to the Committee. Berikutan kajian rancangan berkenaan, ii. Oversee the internal audit department. The Jawatankuasa Audit boleh meminta juru a u d i t Audit Committee in overseeing the internal luaran untuk melaksanakan kerja audit tambahan audit department will: ditumpukan kepada hal-hal spesifik Jawatankuasa. - Review the audit programme, scope, ii. M e m e rhatikan jabatan audit dalaman. Di p e rf o rmance and findings of the intern a l dalam me m e r hatikan jabatan audit dalaman, auditors. Jawatankuasa Audit akan :- - Menyemak program audit, skop, prestasi dan hasil penyiasatan juruaudit dalaman.

15 - Monitor the implementation of the programme - Mengawasi perlaksanaan program supaya so that sufficient internal audit coverage is pe l i p u t a n audit dalaman yang memadai diberikan. accorded. In this respect, only the Committee can Berhubung dengan ini, hanya Jawatankuasa consider and approve or otherwise, all requests sahaja yang boleh mempertimbangkan dan by senior management to utilise internal audit meluluskan atau sebaliknya segala permintaan personnel for non-audit assignments. dari pihak pengurusan kanan untuk - Assess the capacity of the internal audit menggunakan personel audit dalaman bagi d e p a rtment to fulfill its responsibilities by tugasan bukan-audit. considering, amongst other things, the scope of - Menilai kapasiti jabatan audit dalaman untuk the department’s authority as presented in the menunaikan tanggungjawabnya dengan d e p a rt m e n t ’s chart e r, the qualifications and mempertimbangkan, antara lain, skop bidang experience level of its staff, the degree to which kuasa jabatan sepertimana dinyatakan di dalam i n t e rnal auditors are independent of the piagam jabatan tahap kelayakan dan activities they audit and the re p o rt i n g p e n g a l a m a n kakitanganya: sejauh mana relationship between the head of internal audit, j u ruaudit dalaman bebas dari aktiviti-aktiviti and senior management. yang mereka audit dan pelaporan pert a l i a n - Review the coordination of audit effort between antara ketua juruaudit dalaman dengan pihak external and internal auditors, where practical, pengurusan kanan. with a view to maximising audit effectiveness and - Mengkaji koordinasi usaha audit antara controlling external audit costs. ju ru a u d i t - j u r uaudit luaran dan dalaman, di mana iii. Review the assistance and cooperation given by praktikal dengan tujuan memaksimumkan the company’s officers to the external and keberkesanan audit dan pengawalan kos audit internal auditors. luaran. iv . To nominate the external auditors for iii. Mengkaji bantuan dan kerjasama yang diberikan ap p o i n t m e n t . oleh pegawai-pegawai syarikat kepada juruaudit- v. The external and/or internal auditors shall have juruaudit luaran dan dalaman. the right to appear and be heard at any meeting iv. Mencalonkan juruaudit luaran untuk perlantikan. of the Audit Committee and shall appear before v. Juruaudit luaran dan/atau dalaman mempunyai the Audit Committee when required to do so by hak untuk hadir serta menyuarakan pendapat the Audit Committee. m e reka di sebarang mesyuarat Jawatankuasa vi. Upon the request of the external and/or internal Audit dan hendaklah hadir di hadapan auditors, the Chairman of the Audit Committee Jawatankuasa Audit sekiranya diperlukan oleh shall convene a meeting of the Committee to Jawatankuasa Audit. consider any matters the auditors believe should vi . Mengikut permintaan juruaudit luaran/atau be brought to the attention of the Committee. d a l a m a n , P e n g e rusi Jawatankuasa Audit hendaklah juga mengaturkan mesyuarat bagi 3 . 2 Evaluate the Standards of Internal Control and me m p e rt i m b a n g k a n sebarang perkara yang Financial Report i n g mengikut kepercayaan jurua u d i t perlu dibawa i. Hold specific discussions with Senior Corporate kepada perhatian Jawatankuasa. Management to discuss the overall adequacy of the internal control system. 3 . 2 Menilai Piawaian Kawalan Dalaman dan ii. Meet with the internal and external auditors Pelaporan Kewangan. concerning their evaluation of the system of i. Mengadakan diskusi spesifik dengan pihak internal accounting controls. P e n g u rusan Kanan Korporat bagi iii. Consider the nature and disposition of the membincangkan kecukupan sistem kawalan relevant comments appearing in the re p o rt s dalaman. prepared by the internal auditors and in the ii. Berjumpa dengan juruaudit-juruaudit luaran dan external auditors’ management letter. dalaman berhubung penilaian sistem kawalan perakaunan dalaman. 3 . 3 Review of Financial Statements iii. Mempertimbangkan bentuk dan disposisi komen- i. Meet with management and the external auditors komen relevan yang muncul di dalam laporan- to discuss the annual financial statements of the laporan yang disediakan oleh juruaudit dalaman Company or Group and the results of the audit dan di dalam surat pengurusan juruaudit luaran. before recommending approval by the Board. ii. Review the nature and resolution of any 3 . 3 Pengkajian Penyata-Penyata Kewangan significant accounting and auditing problems i. Berjumpa dengan pihak pengurusan dan jurua u d i t encountered during the examination. luaran untuk membincang penyata-penyata iii.It is good practice for the Audit Committee to kewangan tahunan Syarikat dan Kumpulan dan meet the management at a regular interval to juga keputusan-keputusan audit sebelum review the results of the Company or Group, such mengesyorkan pelulusan dari Lembaga Pengarah. as quarterly review of the results. ii. Mengkaji bentuk dan resolusi sebarang masalah iv. Review the nature of any related party perakaunan dan pengauditan yang penting yang transactions that may arise within the Company dihadapi semasa pemeriksaan. or Group. iii. Adalah baik sekiranya Jawatankuasa Audit v. Review the nature of any significant adjustments, berjumpa dengan pihak pengurusan mengikut reclassifications or additional disclosures proposed jangkawaktu yang kerap bagi mengkaji by the external auditors that are currently keputusan-keputusan Syarikat atau Kumpulan, significant or may become significant in the contohnya pengkajian keputusan pada setiap future. suku tahun. iv. Mengkaji bentuk sebarang transaksi pihak berkait yang mungkin timbul dalam Syarikat atau Kumpulan.

16 vi. Review the adequacy of disclosure of the impact of any changes during the year in accounting policies, standards and/or regulatory requirements. vii. Review the reasons for the major fluctuations in financial statement balances for the current year compared to prior years. viii.Review for any unusual circumstances or situations reflected in the financial statements, including identifying any marginal operations. ix. Review the nature of any unusual or significant commitments or contingent liabilities. x. Review of any significant differences between the annual report and other reports, such as reports to the regulatory agencies. xi. Review for any significant differences in format or disclosure from industry norms. v. Mengkaji bentuk sebarang pelarasan, klasifikasi semula atau pendedahan tambahan yang penting yang dicadangkan oleh juruaudit luaran yang penting pada status semasa mahupun akan menjadi penting di masa akan datang. vi. Mengkaji kecukupan pendedahan sebarang perubahan dalam dasar-dasar, piawaian dan/atau syarat-syarat kawalselia perakaunan dalam tahun. vii. Mengkaji sebab-sebab ketidakseimbangan besar di dalam baki penyata kewangan bagi tahun semasa berbanding tahun-tahun sebelumnya. viii.Mengkaji sebarang keadaan atau situasi luar biasa yang dibayangkan dalam penyata-penyata kewangan, termasuk mengenal pasti sebarang operasi marginal. ix. Mengkaji bentuk sebarang komitmen luar biasa atau penting atau liabiliti kontinjen. x. Mengkaji sebarang perbezaan nyata diantara laporan tahunan dan laporan-laporan lain, seperti laporan- laporan kepada agensi-agensi kawalselia. xi. Mengkaji sebarang perbezaan nyata di dalam format ataupun pendedahan dari kebiasaan-kebiasaan industri.

3 . 4 Additional Duties And Responsibilities 3 . 4 Tugas Dan Tanggungjawab Ta m b a h a n i. Act upon the Board of Director’s request to i. Be r tindak apabila diminta oleh Lembaga investigate and report on any issues or concerns Pengarah untuk menjalankan penyiasatan dan in regard to the management of the Company. pelaporan keatas sebarang perkara bersabit dengan ii. Review the Company’s business ethics code, the pe n g u r usan Syarikat. method of monitoring compliance with the ii. Mengkaji kod etika perniagaan Syarikat, code and the disposition of re p o rt e d kaedah mengawasi pematuhan kepada kod exceptions. tersebut dan disposisi berkecualian yang iii. Review executive expenses. dilaporkan. iv. Review policies on sensitive payments. iii. Menyemak belanja-belanja eksekutif. v. Review compliance with certain government iv. Mengkaji dasar-dasar berhubung pembayaran- regulations. pembayaran sensitif. vi. Review policies to avoid conflicts of interest and v. Mengkaji pematuhan kepada syarat-syarat review past or proposed transactions between tertentu Kerajaan. the Company and members of management. vi. Mengkaji dasar-dasar untuk mengelakkan vii. Review certain aspects of the Company’s konflik dari segi kepentingan dan menyemak pension plan and compliance with relevant transaksi dahulu dan dicadangkan antara laws and regulations. Syarikat dengan ahli-ahli pengurusan. viii.Assess the perf o rmance of financial vi i . Mengkaji aspek-aspek tertentu rancangan management. persaraan Syarikat dan pematuhan kepada ix. Such other functions as may be agreed to by the undang-undang dan syarat-syarat rel e v a n . Audit Committee and the Board of Directors. viii.Menilai prestasi pengurusan kewangan. ix . Apa saja fungsi yang dipersetujui oleh Jawatankuasa Audit dan Lembaga Pengarah.

4 Access to Record s In carrying out their duties and responsibilities, the Audit Committee will in principle have full, free and unrestricted access to all Company records, property and personnel. 4 Kebolehsampaian Kepada Rekod-Rekod Di dalam menjalankan tugas dan tanggungjawab mereka, Jawatankuasa Audit hendaklah pada dasarnya, diberi kebenaran sepenuhnya untuk meneliti rekod-rekod, hak-hak milik dan kakitangan Syarikat.

17 5 Meetings and Minutes It is good practise for the Audit Committee to hold a minimum of four (4) meetings a year, although additional meetings may be called at any time at the Chairman’s discretion. It would be desirable that the notice of meetings be sent at least seven (7) days before the time set for the meeting together with an agenda to all members of the Committee and any persons that may be required to attend. The recommended quorum for each meeting shall be three (3) members. In addition to the Committee members, the head of internal audit will normally be in attendance at the meetings. Re p r esentatives of the external auditors are to be in attendance at meetings where matters relating to the audit of the statutory accounts and/or the external auditors are to be discussed. The Chief Executive Officer and/or other appropriate officers may be invited to attend, except for those portions of the meetings where their presence is considered inappropriate, as determined by the Committee Chairma n . Minutes of each meeting shall be kept and distributed to each member of the Committee and also to the members of the Board. The Committee Chairman shall rep o r t on each meeting to the Board. The Secret a r y to the Audit Committee shall be the Company Secret a r y. 5 Mesyuarat dan Minit Adalah menjadi amalan yang baik untuk Jawatankuasa Audit mengadakan sekurang-sekurangnya empat (4) mesyuarat dalam setahun, walaupun mesyuarat-mesyuarat tambahan boleh dipanggil pada bila-bila masa mengikut budibicara Pengerusi. Adalah disarankan supaya notis mesyuarat-mesyuarat dihantar tidak kurang dari tujuh (7) hari sebelum masa ditetapkan untuk mesyuarat bersama dengan agenda kepada semua ahli Jawatankuasa dan mana-mana perseorangan yang diperlukan hadir. Korum yang disyorkan untuk setiap mesyuarat ialah tiga (3) orang ahli. Sebagai tambahan kepada ahli-ahli Jawatankuasa, ketua juruaudit dalaman pada kebiasaannya akan hadir di setiap mesyuarat. Wakil-wakil juruaudit luaran hendaklah hadir di mesyuarat-mesyuarat di mana perkara- perkara berhubung dengan audit akaun-akaun berkanun dan/atau juruaudit luaran perlu dibincangkan. Ketua Pegawai Eksekutif dan atau pegawai-pegawai berkenaan boleh dijemput hadir, kecuali di bahagian-bahagian mesyuarat di mana kehadiran mereka dianggap tidak perlu, yang ditentukan oleh Pengerusi Jawatankuasa. Minit-minit mesyuarat hendaklah dicatit dan diedarkan kepada setiap ahli Jawatankuasa dan juga kepada ahli- ahli lain dalam Lembaga Pengarah. Pengerusi Jawatankuasa hendaklah mengemukakan laporan berkenaan setiap mesyuarat kepada Lembaga Pengarah. Setiausaha bagi Jawatankuasa Audit ialah Setiausaha Syarikat. 6 P e rf o rmance Review of the Audit Committee The Audit Committee met four (4) times in 1999 on 19 March, 4 May, 5 August and 23 November, respectively. At all of these meetings, there was full attendance of all the members and the internal auditor. The external auditors were also invited to participate in the discussions on the annual and periodic financial statements of the Company and the Group and the results of their audit prior to the Audit Committee’s deliberation and recommendation for approval by the Board of Directors. The Audit Committee also reviewed the execution of internal controls on both financial and non-financial matters of the Company. During the year under review, the Audit Committee identified, discussed and rectified the weaknesses of procedures or systems, for example the payroll system, petty cash, purchasing and time attendance system. The relevant Heads of Department were called upon during the Audit Committee Meetings to explain on their procedures or systems and to update the Audit Committee on the appropriate actions taken to rectify weaknesses which were identified during the course of the internal procedures and systems audits conducted by the Internal Audit Department. These internal controls are necessary and are important to safeguard the Company’s and the Group’s assets and the shareholders’ interests at all times. The Audit Committee has exercised reasonable skill, care and diligence in the discharge of its duties and responsibilities. 6 Kajian Prestasi Jawatankuasa Audit Jawatankuasa Audit telah bermesyuarat sebanyak empat (4) kali pada tahun 1999, iaitu pada 19 Mac, 4 Mei, 5 Ogos dan 23 November. Di semua mesyuarat ini, kehadiran semua ahli adalah penuh termasuk juruaudit dalaman. Juruaudit luar juga telah dijemput menyertai perbincangan mengenai penyata kewangan tahunan dan berkala Syarikat dan Kumpulan juga hasil audit mereka sebelum Jawatankuasa Audit berbincang dan mengesyorkan untuk kelulusan Lembaga Pengarah. Jawatankuasa Audit juga mengkaji pelaksanaan kawalan dalaman dalam hal-hal kewangan dan bukan kewangan Syarikat. Sepanjang tahun kajian, Jawatankuasa Audit telah mengenal pasti, berbincang dan membaiki kelemahan pros e d u r - pr osedur atau sistem-sistem, misalnya dalam sistem daftar gaji, tunai runcit, pembelian dan sistem kedatangan masa. Ketua-ketua Jabatan berkenaan dijemput hadir semasa Mesyuarat Jawatankuasa Audit untuk memberi penjelasan tentang pros e d u r- p r osedur atau sistem-sistem jabatan masing-masing dan melaporkan perkembangan terkini kepada Jawatankuasa Audit mengenai langkah-langkah sesuai yang telah diambil untuk membaiki kelemahan yang telah dikenal pasti semasa pengauditan sistem dan prosedur dalaman oleh Jabatan Audit Dalaman. Langkah-langkah kawalan dalaman ini memang diperlukan malah adalah penting untuk melindungi keselamatan aset Syarikat dan Kumpulan di samping menjaga kepentingan pemegang saham setiap masa. Jawatankuasa Audit telah melaksanakan tugas dan tanggungjawab mereka dengan mahir, tekun dan teliti.

18 Studies have concluded that approximately half of all riverine systems worldwide are significantly polluted. Deforestation causes erosion, flooding, silting. The haze from land-clearing fires continues to plague the region. Plants and animals suffer, or perish. What can be done?

The collection, treatment and dissemination of water for mass consumption will almost always entail environmental consequences. Therefore, we must not merely pay lip service to environmental causes. We must work to find the best solution to complex problems.

We must make the 21st century the “green century.” We must articulate our message strongly and consistently. We must lead by example. Because the land, the air, the sea, the lakes, the rivers, the flora and fauna require the utmost care. They are what make Malaysia beautiful, special and uniquely ours.

Bagaimana kita memulihara habitat semula jadi kita? Kajian-kajian telah membuat kesimpulan bahawa lebih kurang separuh daripada sistem sungai diseluruh dunia t e rc e m a r. Pembasmian hutan mengakibatkan hakisan, banjir dan mendapan. Jerebu akibat pembakaran hutan t e rus melanda rantau kita. Tumbuhan dan haiwan menderita atau musnah. Apa yang boleh kita lakukan?

Memang tidak dapat dielakkan bahawa pengumpulan, rawatan dan pengagihan air untuk kegunaan orang ramai akan menjejaskan alam sekitar. Oleh demikian, kita tidak seharusnya sambil lewa dalam perjuangan memulihara alam persekitaran. Kita mesti giat berusaha mencari penyelesaian terbaik untuk masalah rumit ini.

Kita harus bertekad untuk menjadikan abad ke 21 sebagai “abad hijau”. Kita perlu menyampaikan mesej kita dengan lantang dan senada. Kita perlu menunjukkan teladan. Yang penting, sekeliling daratan, udara, lautan, tasik, sungai, flora dan fauna memerlukan penjagaan yang paling sempurna kerana inilah yang menjadikan Malaysia indah, istimewa dan warisan unik kita. senior management

p e n g u r u s a n k a n a n

From left to right • Dari kiri ke kanan: Ir Beh Men Huat, Mdm Chan Siew Meei, Pn Rahana Abdul Rashid, En Azizul Nizam Bidin, En Sonari Solor, En Ibrahim Ismail, En Adly Mohamed, Ir Loh Kit Mun, Mdm Tan Bee Lian, Mr Ng Wah Tar

Encik Ibrahim Ismail Executive Director, Human Resources and Administration Division En Ibrahim joined PNSB in April 1997 as General Manager of the Corporate Affairs Division and was promoted to Executive Director of Human Resources and Administration Division on 1 March 2000. He graduated with a Bachelor of Law Degree in 1981 from the University of Malaya and holds a Master of Encik Ibrahim Ismail Law Degree obtained in 1989 from the Pengarah Eksekutif, Bahagian Sumber Manusia dan Pentadbiran University of London. Previously, he was in En Ibrahim Ismail menyertai PNSB pada April 1997 sebagai private practice and was also the Dean for P e n g u rus Besar, Bahagian Hal Ehwal Korporat and dilantik the Faculty of Law at Universiti Kebangsaan sebagai Pengarah Eksekutif, Bahagian Sumber Manusia and Malaysia (1988-1992). He served with Pentadbiran pada 1 Mac 2000. Beliau memperolehi Ijazah Sarjana Petronas as Senior Legal Counsel in its Gas Muda Undang-Undang dari Universiti Malaya pada 1981 dan Division (1995-1996) and Senior Manager for Sarjana Undang-Undang dari University of London pada 1989. the Market Development Department of Sebelum ini, beliau pernah berkhidmat dengan firma guaman Malaysia LNG Tiga Sdn Bhd (1996-1997). He dan juga sebagai Dekan Fakulti Undang-Undang, Universiti has 18 years experience in various aspects of Kebangsaan Malaysia (1988-1992). Beliau bertugas di Petron a s litigation, conveyancing and corporate sebagai Penasihat Perundangan Kanan, Bahagian Gas (1995-1996) work. dan Pengurus Kanan Jabatan Pembangunan Pemasaran bagi syarikat Malaysia LNG Tiga Sdn Bhd (1996-1997). Beliau mempunyai pengalaman selama 18 tahun dalam pelbagai aspek ur usan litigasi, hartanah dan korporat.

20 Encik Azizul Nizam Bidin Executive Director, Puncak Seri (M) Sdn Bhd En Azizul was appointed Executive Director of Puncak Seri (M) Sdn Bhd, a wholly owned subsidiary of PNHB on 24 September 1998. He holds a Diploma in Hotel Management from Stamford College, and a Diploma in Management from the Malaysian Institute of Management (MIM). He has more than 9 years management and entrepreneurial experience in diversified operations gained from various ventures and collaboration with foreign companies in setting up local services that provide the vision and exposure for personal career development.

Encik Azizul Nizam Bidin Encik Adly Mohamed Pengarah Eksekutif, Puncak Seri (M) Sdn Bhd General Manager, En Azizul dilantik sebagai Pengarah Eksekutif Puncak Seri (M) Sdn Training & Protective Operation Bhd, sebuah syarikat milik penuh PNHB pada 24 September 1998. En Adly joined PNSB in 1997. He holds a Beliau memiliki Diploma Pengurusan Hotel daripada Kolej Stamford Diploma in Business Studies from MARA dan Diploma Pengurusan dari Institut Pengurusan Malaysia (MIM). Institute of Te c h n o l o g y, a degree in Beliau mempunyai pengalaman luas dalam bidang pengurusan dan Business Management in 1984 as well as a keusahawanan setelah melibatkan diri selama lebih 9 tahun dalam Masters Degree in Business Administration pelbagai usahasama dengan syarikat-syarikat asing bagi in 1986 from Kent State University of mewujudkan perkhidmatan tempatan yang mana telah Ohio, U.S.A. He has served as Consultant memperluaskan peluang bagi kemajuan kerjaya peribadi. with Alexander Proudfoot (M) Sdn Bhd, Kewangan Usaha Bersatu Berhad and Encik Adly Mohamed Bank Bumiputra (M) Bhd, Senior Pengurus Besar, Consultant with HRM Management Latihan dan Operasi Keselamatan Consultant (1987), Org a n i s a t i o n En Adly menyertai PNSB pada 1997. Beliau mempunyai Diploma Development Executive with Malaysia Pengajian Perniagaan dari Institut Teknologi MARA, Ijazah Airlines (1988-1992) and Business Pengurusan Perniagaan pada 1984 dan juga Sarjana Pentadbiran Development Manager with Permodalan pada 1986 dari Kent State University of Ohio, Amerika Syarikat. Nasional Berhad (1992-1996). Overall, he Beliau pernah berkhidmat sebagai Perunding dengan Alexander has more than 14 years experience in Proudfoot (M) Sdn Bhd, Kewangan Usaha Bersatu Berhad dan Bank the finance and investment sectors, Bumiputra (M) Bhd, Perunding Kanan dengan HRM Management consultancy and corporate services, as Consultant (1987), Eksekutif Pembangunan Pertubuhan dengan well as in business and org a n i s a t i o n a l Malaysia Airlines (1988-1992) dan Pengurus Pembangunan development. P e rniagaan di Permodalan Nasional Berhad (1992-1996). Pada k e s e l u ruhannya, beliau mempunyai lebih dari 14 tahun Ir Beh Men Huat pengalaman di dalam sektor kewangan, firma peru n d i n g a n , General Manager, pembangunan organisasi, pelaburan, perkhidmatan korporat dan Project & Business Development pembangunan perniagaan. Ir Beh joined PNSB in February 1996 as Manager of the Business Development Ir Beh Men Huat D e p a rtment. He is now the General Pengurus Besar, Manager, Project & Business Development. Projek dan Pembangunan Perniagaan He graduated in 1982 with a BSc Degree Ir Beh mula berkhidmat dengan PNSB pada Februari 1996 sebagai in Civil Engineering from University P e n g u rus Jabatan Pembangunan Perniagaan. Beliau kini Strathclyde, Scotland. Prior to joining berkhidmat sebagai Pengurus Besar, Projek dan Pembangunan PNSB, he worked with the Public Works Perniagaan. Beliau memperolehi Ijazah Sarjana Muda Sains dalam Department and Lembaga Air Perak. His bidang Kejuruteraan Awam dari University Strathclyde, Scotland 18 years of working experience covers pada 1982. Sebelum menyertai PNSB, beliau berkhidmat di Jabatan areas pertaining to project management Kerja Raya dan Lembaga Air Perak. Pengalaman kerja beliau selama and water supply operation and 18 tahun meliputi bidang yang berkaitan dengan pengurusan management. projek dan operasi serta pengurusan bekalan air.

21 Madam Chan Siew Meei General Manager, Legal Mdm Chan joined PNSB in May 1998 as General Manager, Legal. She obtained her Bachelor of Law Degree from the University of Malaya in 1981. During the course of her 19 year career, Mdm Chan has served as an advocate and solicitor, lecturer, company secretary and as legal adviser to two public listed companies. Her employment portfolio covers very diverse activities ranging from the timber and plantation sectors to engineering, property and manufacturing. As such, apart from her legal and corporate duties, she has attained considerable experience in administration, human resources and company secretarial work.

Puan Chan Siew Meei Ir Loh Kit Mun Pengurus Besar, Perundangan General Manager, Operation II Pn Chan menyertai PNSB pada Mei 1998 Ir Loh joined PNSB in April 1998 and oversees the sebagai Pengurus Besar, Perundangan. Beliau operation, maintenance and rehabilitation of 27 WTPs, m e m p e rolehi Ijazah Sarjana Muda Peru n d a n g a n contract supervision, dam operations, water resources dari Universiti Malaya pada 1981. Sepanjang kerjaya and environmental issues. Upon graduation from the beliau selama 19 tahun, Pn Chan telah bertugas University of Malaya with a Bachelor of Civil Engineering sebagai peguambela dan peguamcara, pensyarah, Degree in 1978, he worked as an engineer with the setiausaha syarikat dan penasihat undang-undang Drainage and Irrigation Department (1978-1980). Then kepada dua buah syarikat awam tersenarai. he served as Chief Engineer (last designation) at SMHD Pengalaman beliau merangkumi pelbagai jenis Sdn Bhd (1980-1993), Associate at Ranhill Bersekutu Sdn kegiatan termasuk di dalam sektor pembalakan, Bhd (1993-1995) and General Manager (Infrastructure) of ladang, kejuruteraan, hartanah dan pengilangan. Di KL Linear City Sdn Bhd (1995-1998). His 22 years of samping urusan perundangan dan korporat, beliau working experience covers areas pertaining to drainage, juga mempunyai pengetahuan luas di dalam urusan h y d ro l o g y, water re s o u rces and supply, design and pentadbiran, sumber manusia dan kesetiausahaan c o n s t ruction of dams, river engineering, drainage syarikat. and flood mitigation, infrastru c t u re development, environmental assessment, management of engineering Ir Loh Kit Mun projects and operation of WTPs. Pengurus Besar, Operasi II Ir Loh menyertai PNSB pada April 1998 dan Mr Ng Wah Tar bertanggungjawab dalam penyeliaan, pelaksanaan, General Manager, Finance & Accounts pengendalian dan membaik pulih 27 loji-loji Mr Ng was articled with an accounting firm in 1984. He is pembersihan air, penyeliaan kontrak, pelaksanaan a member of the Malaysian Institute of Accountants empangan serta unit sumber air dan alam sekitar. (MIA) and the Malaysian Association of Certified Public Selepas tamat pengajian daripada Universiti Malaya Accountants (MACPA). After spending 10 years in the dengan memiliki Ijazah Sarjana Kejuruteraan Awam accounting profession where he last served as Audit pada 1978, beliau telah berkhidmat sebagai Jurutera Manager for 3 years, he joined United Engineers (M) di Jabatan Saliran dan Perparitan (1978-1980). Berhad (UEM) as the Accountant of its Trading Division in Kemudian beliau berkhidmat sebagai Ketua 1994. He was subsequently promoted to Senior Manager, Jurutera (jawatan terakhir) di SMHD Sdn Bhd (1980- Finance in 1997 and then transferred to the Management 1983), Rakan Sekutu di Ranhill Bersekutu Sdn Bhd Services Division overseeing the finance and accounting (1993-1995) dan Pengurus Besar (Infrastruktur) di KL functions of UEM. After serving UEM for 6 years, he Linear City Sdn Bhd (1995-1998). Pengalaman beliau joined PNSB in March 2000 as General Manager, Finance selama 22 tahun merangkumi bidang tugas yang & Accounts. berkaitan dengan perparitan, hidrologi, sumber dan bekalan air, rekabentuk dan pembinaan empangan, kejuruteraan sungai, perparitan dan pengawalan banjir, pembangunan infrastruktur, penilaian alam persekitaran dan pengurusan projek kejuruteraan dan perlaksanaan loji pembersihan air.

22 Encik Ng Wah Tar Pengurus Besar, Kewangan dan Akaun En Ng telah menjalani latihan kelayakan perakaunannya di sebuah firma perakaunan pada tahun 1984. Beliau adalah ahli Institut Akauntan Malaysia (MIA) dan Persatuan Akauntan Bertauliah Malaysia (MACPA). Setelah menimba pengalaman selama 10 tahun di dalam bidang perakaunan, dengan 3 tahun terakhir sebagai Pengurus Audit, beliau menyertai United Engineers (M) Berhad (UEM) sebagai Akauntan di Bahagian Dagangan pada 1994. Beliau dinaikkan pangkat sebagai Pengurus Kanan, Kewangan pada 1997 dan kemudian dipindahkan ke Bahagian Perkhidmatan Pengurusan dan bertanggungjawab ke atas segala fungsi kewangan dan perakaunan di UEM. Setelah berkhidmat selama 6 tahun di UEM, beliau menyertai PNSB pada Mac 2000 sebagai Pengurus Besar, Kewangan dan Akaun.

Puan Rahana Abdul Rashid Puan Rahana Abdul Rashid Pengurus Besar, Kewangan Korporat General Manager, Corporate Finance Pn Rahana menyertai PNSB pada 1996 Pn Rahana joined PNSB in 1996 as General Manager, Corporate sebagai Pengurus Besar, Kewangan Finance. She holds a Bachelor of Science (Finance) Degree as well as Korporat. Beliau memperolehi Ijazah a Masters Degree in Business Administration from Indiana State Sarjana Muda Sains (Kewangan) dan juga University, U.S.A. Prior to joining PNSB, she was a member of the Sarjana Pentadbiran Perniagaan dari Corporate Finance team in Aseambankers Malaysia Bhd since 1987, Indiana State University, Amerika her last position there being Senior Manager/Head of Corporate Syarikat. Sebelum menyertai PNSB, beliau Finance. She has over 9 years experience in various aspects of merupakan ahli unit Kewangan Korporat corporate finance such as mergers, takeovers, flotations and di Aseambankers Malaysia Bhd sejak 1987. matters dealing with equity of the various companies operating in Jawatan terakhir beliau di sana adalah diversified industries. In her present position in PNSB, she is sebagai Pengurus Kanan/Ketua Kewangan primarily responsible for the financial feasibility of pro j e c t s Korporat. Beliau berpengalaman lebih undertaken by the Company as well as serving as a corporate 9 tahun dalam pelbagai aspek kewangan finance advisor. korporat seperti penggabungan, pengambilalihan, pengapungan dan Encik Sonari Solor hal-hal yang beru rusan dengan ekuiti General Manager, Internal Audit syarikat-syarikat yang bergiat dalam En Sonari has more than 10 years experience in auditing and pelbagai jenis industri. Dalam accountancy in public listed companies dealing in pro p e rt y jawatannya sekarang di PNSB, beliau development, manufacturing, timber and consultancy services. He b e rtanggungjawab ke atas kewajaran is a fellow member of The Chartered Association of Certified kewangan bagi pro j e k - p rojek yang Accountants (UK) and also holds a professional qualification from dikendalikan oleh Syarikat di samping The Chartered Institute of Management Accountants (UK). Prior to berkhidmat sebagai penasihat kewangan joining PNSB in 1998, he served as Group Divisional Chief, Internal korporat. and Management Audit of Land & General Berhad, Chief Operating Officer of Sepakat Computer Consultants Sdn Bhd, Audit Manager of DMIB Berhad and Accountant of Utusan Melayu Berhad.

23 Encik Sonari Solor Pengurus Besar, Audit Dalaman En Sonari adalah seorang ahli fellow ‘The Chartered Association of Certified Accountants (UK)’ dan juga mempunyai kelulusan profesional dari ‘The Chartered Institute of Management Accountants (UK)’. Beliau berpengalaman lebih 10 tahun dalam jurusan audit dan perakaunan dalam syarikat tersenarai yang terlibat dalam pembangunan hartanah, perkilangan, pembalakan dan perkhidmatan pakar runding. Sebelum menyertai PNSB pada 1998, beliau pernah berkhidmat sebagai Ketua Bahagian Kumpulan, Audit Dalaman dan Pengurusan Land & General Berhad, Ketua Pegawai Operasi Sepakat Computer Consultants Sdn Bhd, Pengurus Audit DMIB Berhad and Akauntan Utusan Melayu Berhad.

Madam Tan Bee Lian Puan Tan Bee Lian Group Company Secretary/ Setiausaha Syarikat Kumpulan/ General Manager, Secretarial Pengurus Besar, Kesetiausahaan Mdm Ta n has more than 11 years corporate secre t a r i a l Pn Tan mempunyai lebih 11 tahun experience in both private and public listed companies. She has pengalaman dalam bidang kesetiausahaan been with PNHB Group for more than 5 years and was involved korporat dalam syarikat awam dan swasta. in the successful listing of PNHB on the Main Board of Kuala Beliau telah berkhidmat dengan Kumpulan Lumpur Stock Exchange on 8 July 1997. She joined PNSB in PNHB lebih 5 tahun dan terlibat dalam November 1994 as Company Secretary and was promoted to penyenaraian PNHB di Papan Utama Bursa Group Company Secretary in January 1998. Recently, Mdm Tan Saham Kuala Lumpur pada 8 Julai 1997. Pn was further promoted to General Manager, Secretarial in March Tan mula berkhidmat di PNSB pada November 2000. She is a graduate of the Institute of Chartered Secretaries 1994 sebagai Setiausaha Syarikat dan and Administrators (ICSA) and attained associateship in 1991. kemudian dinaikkan pangkat sebagai Prior to joining PNSB, she worked in the Secretarial & Legal Setiausaha Syarikat Kumpulan pada Januari Department of Project Lebuhraya Utara-Selatan Berhad (PLUS) 1998 dan seterusnya dinaikkan pangkat and was the Assistant Company Secre t a ry of Metramac sebagai Pengurus Besar, Kesetiausahaan pada Corporation Sdn Bhd/Metacorp Berhad, a company listed on the Mac 2000. Beliau adalah graduan Institute of Second Board of Kuala Lumpur Stock Exchange. C h a rt e red Secretaries and Administrators (ICSA) dan memperolehi kelayakan kesetiausahaannya pada 1991. Sebelum berkhidmat di PNSB, beliau bertugas di Jabatan Kesetiausahaan dan Undang-Undang P rojek Lebuhraya Utara-Selatan Berh a d (PLUS) dan merupakan Penolong Setiausaha Syarikat bagi Metramac Corporation Sdn Bhd/ Metacorp Berhad, sebuah syarikat yang tersenarai di Papan Kedua Bursa Saham Kuala Lumpur.

24 Technology allows us not only to build better dams, tr eatment and distribution networks. It also enables us to m o re effectively monitor the efficiency of our management systems; to predict potential trouble spots be f o r e they become a problem and, in the event an em e r gency arises, to be able to meet, contain and res o l v e it .

We are well on our way to achieving one of the highest levels of automation and technological integration in water management in the South East Asia region. In particular, the information technology promises to bring about profound changes in increased performance and e ff i c i e n c y, enhanced safety, while at the same time keeping water charges at a reasonable rate.

Bagaimana cara terbaik untuk kita menjana teknologi? Teknologi bukan sekadar membolehkan kita mempertingkatan pembinaan empangan dan rangkaian rawatan dan agihan air. Malah ianya juga memudahkan pemantauan kecekapan sistem pengurusan kita dengan berkesan; mengesan awal petanda-petanda gangguan sebelum menjadi masalah dan mampu menghadapi, menyekat dan menyelesaikan masalah tersebut sekiranya berlaku kecemasan.

Usaha kita untuk mencapai tahap automasi dan integrasi teknologi termaju dalam pengurusan air di rantau Asia Tenggara sudah menampakkan hasil. Te ru t a m a n y a , teknologi maklumat menjanjikan perubahan ketara dalam peningkatan prestasi, kecekapan, keselamatan dan pada masa yang sama, memastikan kadar caj air yang munasabah.

25

c h a i r m a n ’ s statement

kenyataan penger u s i

Introduction As we enter the new millennium, our Company can look back with pride at all that we have accomplished in so short a period of time. At the same time, we can look ahead to the future with both confidence and a renewed sense of commitment.

Just six years ago, we founded Puncak Niaga (M) Sdn Bhd (PNSB), and commenced on an ambitious undertaking: to take over, operate, maintain, manage, rehabilitate and refurbish 27 water treatment plants, which would supply the bulk of the nation’s current and future water needs.

In 1995, PNSB was awarded a major contract to build and operate Malaysia’s largest and most modern water treatment facility– SSP2.

Soon after came another milestone: Puncak Niaga Holdings Berhad (PNHB) became the first water supply infrastructure company to be listed on the KLSE Main Board– an impressive A view of the lake at Klang Gates Dam Pemandangan tasik di Empangan Klang Gates achievement for any company– and demonstrated that we had become a P e n g e n a l a n major water industry player. Setelah kami melangkah ke alaf baru, Syarikat kami kini boleh mengimbau kembali dan berasa megah dengan kejayaan yang telah 1998 was a period of crisis and dicapai dalam tempoh yang singkat. Sekali gus kami juga turut challenge; the Klang Valley experienced terangsang dan berkeyakinan untuk menghadapi tahun-tahun a water shortage sparked by a severe mendatang dengan lebih bersemangat dan penuh komitmen. d rought. This, compounded by the re g i o n ’s ongoing economic turm o i l , Baru enam tahun lalu, kami mengasaskan Puncak Niaga (M) Sdn Bhd proved to be a trying time. Yet, as (PNSB) dan berazam mencapai satu cita-cita tinggi: mengambilalih, the inevitable problems arose, we mengendali, menyenggara, mengurus, membaik pulih dan o v e rcame them. Adversity made us melengkapkan 27 buah loji pembersihan air, yang akan membekal s t rong; it tested our mettle as it sebahagian besar keperluan air negara, kini dan masa depan. demonstrated our expertise. Pada 1995, PNSB telah dianugerahkan kontrak utama untuk membina Today, with 62% of market share, PNSB dan mengendalikan loji pembersihan air yang paling besar dan is by far the largest supplier of treated tercanggih di Malaysia– SSP2. water in Selangor and the Federal Territory. When SSP2 is fully completed Tidak lama kemudian, Puncak Niaga Holdings Berhad (PNHB) mencatat in December 2000, that figure will rise satu lagi sejarah penting sebagai sebuah syarikat infrastruktur bekalan to 68%. air yang pertama disenaraikan di Papan Utama Bursa Saham Kuala Lumpur– satu kejayaan cemerlang bagi mana-mana syarikat– dan membuktikan kemampuan kami sebagai pemain utama dalam industri ai r .

27 1999 has brought record profitability to the Company. Yet perhaps just as importantly, the past year also demonstrated the high level of confidence in the Company’s perf o rmance and long-term earnings potential among investors, financial institutions and markets both here and abroad, and governmental bodies.

These are indeed exciting and rewarding times for our Company, as we enter the new millennium invigorated, confident and poised to make even greater strides in the year 2000 and beyond.

As the ASEAN region bounces back, we see even further opportunities for growth. In an era of increased globalisation, strained government budgets and the imperatives of continued industrialisation and modernisation, PNSB is carefully assessing potential markets and water infrastructure projects in order to best take advantage of its position as one of the leading regional players.

We also recognize the role of enlightened water resource management in sustaining social and economic progress, while at the same time taking A majestic view of the Klang Gates Dam appropriate steps to ensure the well-being of our natural resources and of the Pemandangan Empangan Klang Gates environment as a whole. We must strike a balance between growth, progress and pre s e rvation. This will be our 1998 merupakan tahun yang dilanda dengan pelbagai krisis dan greatest challenge; when we succeed it cabaran: Lembah Klang mengalami kekurangan bekalan air akibat may well become our greatest legacy. musim kemarau yang paling teruk. Kemelut ekonomi serantau yang berterusan menggawatkan lagi keadaan. Namun demikian, segala PNSB has taken a leadership role masalah yang timbul dapat kami atasi. Kesusahan menjadikan kami in educating the public, and lebih tabah dan teguh; kecekalan kami teruji dan kepakaran kami particularly the younger generation, jelas terbukti. on the importance of protecting this s c a rce and valuable re s o u rce. This Kini, PNSB membekalkan 62% daripada keperluan air dan merupakan f o rms the centrepiece of our pembekal air bersih yang terbesar di Selangor dan Wi l a y a h blueprint for prudent water resource Persekutuan. Peratusan ini akan meningkat kepada 68% apabila management; one which will marshal projek SSP2 siap sepenuhnya pada Disember 2000. the energies of the entire population in ensuring a safe and sufficient water Tahun 1999 Syarikat terus mencatatkan rekod keuntungan. supply well into the 21st century. Pencapaian ini jelas membuktikan peningkatan keyakinan terhadap prestasi Syarikat dan potensi pendapatan jangka panjang di kalangan pelabur, institusi dan pasaran kewangan dalam dan luar negara, juga badan-badan kerajaan.

Perkembangan sepanjang tahun 1999 paling mendebar sert a memanfaatkan Syarikat kami. Pengalaman inilah yang membolehkan kami melangkah ke alaf baru dengan semangat baru yang lebih cergas, yakin dan bersedia untuk menghadapi cabaran yang lebih hebat pada tahun 2000 dan seterusnya.

28 Berikutan pemulihan ekonomi rantau ASEAN, banyak lagi peluang perkembangan yang dapat kami terokai. Dalam era peningkatan globalisasi, pengurangan belanjawan

Our North Hummock WTP kerajaan dan kesemarakan perindustrian dan Loji Pembersihan Air North Hummock kami pemodenan, PNSB sedang menilai teliti pasaran dan projek infrastruktur air berpotensi bagi memanfaatkan kedudukannya sebagai salah satu pemain industri yang terulung di rantau ini. Financial Performance It gives me great pleasure to announce Kami juga mengiktiraf peranan a sterling financial performance by the Group, p e n g u rusan sumber air dalam with all major indicators doubling over the past memelihara kesejahteraan year. These gains are all the more substantive in ekonomi dan sosial, serentak light of the fact that 1998 itself saw impressive itu mengambil langkah-langkah gains and a healthy balance sheet. sesuai bagi memastikan kesejahteraan sumber alam The Group achieved a turnover of RM347,472,486 semula jadi sekeliling tidak for the year ended 31 December 1999, compared terjejas. Kami perlu kemajuan dan to RM183,415,236 in 1998, an increase of 89%, pemuliharaan. Inilah cabaran The aeration process at SSP2 while after-tax profit amounted to RM98,971,517 paling hebat kepada kami; jika Proses pengudaraan di SSP2 a 73% increase over the previous year. kami berjaya, kemenangan inilah yang akan menjadi warisan kami Earnings per share based on profit attributable to yang abadi. shareholders almost doubled to 39.59 sen this year, from 22.89 sen the previous year. PNSB juga telah menerajui peranan untuk mendidik orang awam, khususnya generasi muda, mengenai pentingnya This solid perf o rmance reflects the deep pemeliharaan sumber air yang bernilai dan semakin commitment and hard work of the entire berkurangan. Inilah asas rangka tindakan kami dalam Management and staff of our Company, and on p e n g u rusan air berhemat yang akan menggembleng behalf of the Board of Directors of the Company, tenaga semua penduduk bagi memastikan bekalan air I would like to congratulate all of them on a job yang selamat dan mencukupi sehingga abad ke 21. well done. P restasi Kewangan Saya dengan bangganya mengumumkan pre s t a s i kewangan yang cemerlang oleh Kumpulan dengan menunjukkan peningkatan yang berganda berbanding tahun lalu. Pertambahan ini amat terserlah memandangkan prestasi pada tahun 1998 yang menunjukkan keuntungan yang mengkagumkan dan lembaran imbangan yang cukup teguh.

Kumpulan mencapai perolehan sebanyak RM347,472,486 bagi tahun berakhir 31 Disember 1999, berbanding dengan RM183,415,236 pada 1998, iaitu kenaikan sebanyak 89%. Justeru itu, keuntungan selepas cukai bagi tahun kewangan berjumlah RM98,971,517 iaitu kenaikan sebanyak 73% berbanding dengan tahun lalu.

29 Corporate Governance Another factor which has certainly helped spur growth in the Company is a strong ethic of good corporate policies and decision-making processes that are transparent and disclosure-based. The recent economic downturn has led us to redouble our efforts to maintain appropriate standards of corporate responsibility and accountability, to provide greater disclosure and transparency, and to ensure a corporate environment that is based on meritocracy, initiative and innovation.

State-of-the-art machinery at SSP2 This is particularly evident in Kejenteraan mutakhir digunakan di SSP2 the Company’s share h o l d e r communications and investor Pendapatan sesaham berdasarkan keuntungan yang diagihkan relations, where we promote and kepada pemegang-pemegang saham hampir berganda sehingga encourage bilateral share h o l d e r 39.59 sen pada tahun ini berbanding dengan 22.89 sen tahun lalu. communication through active participation at the Company’s general Prestasi cemerlang ini mencerminkan komitmen jitu dan kegigihan meetings and the dissemination of sepadu pihak pengurusan dan setiap kakitangan Syarikat kami dan quality and timely information to bagi pihak Lembaga Pengarah, saya ingin mengucapkan syabas investors, analysts and the public at kepada mereka semua atas kejayaan ini. large. Penguasaan Korporat Transparency in our business activities Satu lagi faktor yang telah membantu Syarikat berkembang maju also continues to be a strong ialah penguasaan korporat yang berhemah dan beretika. Segala Company asset, as we endeavour to polisi pengurusan dan proses membuat keputusan Syarikat adalah keep our shareholders, investors, and berasaskan dasar yang telus dan terbuka. Kemerosotan ekonomi the public well-informed on the baru-baru ini telah mendorong kami untuk melipatgandakan usaha Company’s progress and direction. bagi mengekalkan tahap tanggungjawab dan skop tugasan korporat yang bersesuaian, membolehkan pelaksanaan tugas yang lebih We are taking even further steps to terbuka dan telus di samping memastikan amalan korporat yang promote a sense of partnership and berdasarkan meritokrasi, inisiatif dan inovasi. participation, with a long-term plan to create a proactive Investor Relations Dasar ini begitu ketara terutamanya dalam komunikasi pemegang Programme to promote the Company saham dan perhubungan pelabur Syarikat yang menggalakkan and to provide frank and fair komunikasi dua hala melalui penglibatan aktif pemegang-pemegang evaluation of the Company’s strengths saham di mesyuarat agung Syarikat dan penyibaran maklumat yang and growth potential. tepat serta berkualiti kepada para pelabur, penganalisa dan orang awam.

Ketelusan aktiviti perniagaan kami merupakan aset kukuh Syarikat selaras dengan keazaman kami untuk memaklumkan berita terkini kepada pemegang-pemegang saham kami, para pelabur dan orang ramai mengenai perkembangan dan hala tuju Syarikat.

30 Kuala Kubu Bahru WTP Loji Pembersihan Air Kuala Kubu Bahr u

Kami sedang mengambil langkah- Proposed Composite Issue langkah susulan untuk menjalin On 12 November 1999, the Board of Directors of the Company semangat perkongsian dan announced a Proposed Composite Issue comprising: p e n y e rtaan dengan rancangan jangka panjang untuk mewujudkan 1. A proposed bonus issue of 125,000,000 new ordinary shares of P rogram Hubungan Pelabur pro - a k t i f RM1.00 each on the basis of one (1) new ordinary share for every b e rtujuan mempromosi Syarikat two (2) existing ordinary shares (‘Proposed Bonus Issue’); and dan menyediakan penilaian adil mengenai kekuatan dan potensi 2. A proposed rights issue of 62,500,000 new ordinary shares of pertumbuhan Syarikat. RM1.00 each on the basis of one (1) new ordinary share for every four (4) existing shares held in the Company at an issue price of Cadangan Terbitan Komposit RM1.50 per share (“Proposed Rights Issue”). Pada 12 November 1999, Lembaga Pengarah mengumumkan Cadangan The implementation of the Proposed Composite Issue is subject to the Terbitan Komposit yang terd i r i approvals being obtained from the Securities Commission (“SC”), the daripada: Kuala Lumpur Stock Exchange (“KLSE”) and shareholders of the C o m p a n y. The proceeds from the Proposed Composite Issue 1. Cadangan terbitan bonus sebanyak amounting to RM93,750,000 is to finance the working capital 125,000,000 saham biasa baru pada requirements of the Group and expenses for the Proposed Composite harga RM1.00 setiap satu atas dasar Issue. satu (1) saham biasa baru bagi setiap dua (2) saham biasa sedia ada The Company has, through its merchant banker, RHB Sakura (‘Cadangan Terbitan Bonus’); dan Merchant Bankers Berhad, submitted the application to the SC on 28 January 2000 to obtain the SC’s approval on the Proposed Composite 2. Cadangan terbitan hak sebanyak Issue. On behalf of the Board of Directors of the Company, I am 62,500,000 saham biasa baru pada pleased to inform you that the SC has granted its approval on 20 April harga RM1.00 setiap satu atas dasar 2000. We will seek the shareholders’ approval for the Proposed satu (1) saham biasa baru bagi setiap Composite Issue at an Extraordinary General Meeting to be held at a empat (4) saham sedia ada dalam date to be determined. Syarikat pada harga terbitan RM1.50 setiap satu (‘Cadangan Te r b i t a n The entire exercise is expected to be completed by the second half of Hak’). year 2000 with the listing and quotation of 187,500,000 new ordinary shares of the Company on the KLSE. The share capital of the Company will thereafter be enlarged to 437,500,000 ordinary shares of RM1.00 each.

31 Installation of the precast filter slabs at SSP2 Phase 2 Pemasangan acu kepingan konkrit siap pada struktur penapisan di SSP2 Fasa 2

Pelaksanaan Cadangan Terbitan Komposit adalah tertakluk kepada kelulusan Suruhanjaya Sekuriti, Bursa Saham Kuala Lumpur (‘BSKL’) dan pemegang saham Syarikat. Hasil daripada The newly built aerator structure, part of SSP2 Phase 2 Cadangan Terbitan Komposit berjumlah RM93,750,000 akan Struktur proses pengudaraan yang baru dibina, sebahagian dari SSP2 Fasa 2 digunakan untuk membiayai keperluan modal kerja Kumpulan dan pebelanjaan Cadangan Terbitan Komposit.

Recognition Melalui jurubank saudagar kami, RHB Sakura Merc h a n t I am proud to inform you that our Company Bankers Berhad, Syarikat telah mengemukakan permohonan achieved special recognition in 1999 from kepada Suruhanjaya Sekuriti pada 28 Januari 2000 untuk both the public and private sectors. In m e m p e rolehi kelulusan mengenai Cadangan Te r b i t a n January, the Company’s stocks were included Komposit. Bagi pihak Lembaga Pengarah Syarikat, saya on the KLSE Composite Index, where it joined dengan sukacitanya memaklumkan bahawa Suru h a n j a y a the country’s vaunted “blue chips.” This is an Sekuriti telahpun memberi kelulusan pada 20 April 2000. Kami e x t remely impressive indicator of our akan mendapatkan kelulusan pemegang saham di Mesyuarat Company’s performance, its strong earnings Agung Luar Biasa yang akan diadakan pada suatu tarikh yang base and the confidence in which it is held by akan ditetapkan. the financial community. K e s e l u ruhan kegiatan ini dijangka terlaksana sepenuhnya In November, PNHB won the coveted National pada pertengahan kedua tahun 2000 dengan penyenaraian Annual Corporate Report Awards (NACRA) dan sebut harga 187,500,000 saham biasa baru Syarikat di I n d u s t ry Excellence Aw a rd for the BSKL. Modal saham Syarikat akan meningkat kepada “ C o n s t ruction & Infrastru c t u re Pro j e c t 437,500,000 saham biasa pada harga RM1.00 setiap satu. Companies” category. The award recognises corporate excellence in the presentation of P e n g i k t i r a f a n timely and accurate business information. Saya dengan bangganya mengumumkan bahawa pada 1999 Syarikat kami telah mendapat pengiktirafan istimewa daripada sektor awam dan swasta. Pada bulan Januari, stok Syarikat telah disenaraikan dalam Indeks Komposit BSKL bersama-sama kategori “saham terpilih”. Ini meru p a k a n petunjuk paling menonjol bagi prestasi Syarikat kami, kekukuhan dasar pendapatannya dan tahap keyakinan golongan sektor kewangan terhadap Syarikat.

32 Then in December, PNHB was included in the M o rgan Stanley Capital International (MSCI) S t a n d a rd Index, which effectively opens participation to foreign investors from around the world. This in turn is certain to create even more Signing Ceremony for the Second Amendment to the Construction Cum value for the Company. It represents a significant Operation Agreement Majlis Menandatangani Pindaan Kedua ke atas Perjanjian Pembinaan dan achievement for any company, especially an Operasi i n f r a s t ru c t u re project company, and marks our emergence in the global market.

Looking Ahead Pada bulan November pula, PNHB telah memenangi As we enter the year 2000, the Company will Anugerah Kecemerlangan Industri NACRA bagi continue to expand and consolidate existing markets kategori “Pembinaan dan Syarikat Projek In f r a s t ru k t u r ” . while aggressively pursuing new markets. To ensure Anugerah ini mengiktiraf kecemerlangan k o r p o r a t even greater growth and pro f i t a b i l i t y, we are dalam pembentangan maklumat perniagaan yang f o rging new partnerships and strategic alliances tepat dan cepat. within the industry which will create stro n g e r synergies, reduce costs, and improve performance Kemudian pada bulan Disember, PNHB disenaraikan and profitability. We will continue to concentrate on dalam Morgan Stanley Capital International Standard our core business in the water supply industry, Index (MSCI) yang membuka penyertaan kepada which comprises water engineering, tre a t m e n t , pelabur asing dari seluruh dunia. Langkah ini sudah distribution, management and construction, while at pasti akan meningkatkan nilai saham Syarikat. Ini the same time developing downstream and related adalah satu pencapaian penting bagi mana-mana business activities. syarikat, terutamanya syarikat projek infrastru k t u r, yang sekali gus menandakan kemunculan kami dalam Going Concern Statement pasaran global. I would like to take this opportunity to convey a statement from the Board of Directors, that, after Tinjauan Masa Depan conducting due and reasonable enquiry into the Setelah melangkah ke tahun 2000, Syarikat akan affairs of the Company, the Board of Directors firmly m e n e ruskan usaha memperluas dan mengukuhkan believe the Company shall continue to operate as a pasaran yang sedia ada sementara menerokai pasaran going concern business in the foreseeable future. b a ru secara agresif. Bagi memastikan peningkatan pertumbuhan dan keuntungan Syarikat, kami akan menjalin perkongsian dan pakatan strategik baru dalam industri yang mampu mengukuhkan hubungan sinergi, mengurangkan kos dan meningkatkan prestasi dan keuntungan. Kami akan terus memberi tumpuan kepada perniagaan teras Syarikat dalam industri bekalan air yang merangkumi kejuruteraan air, rawatan, pengagihan, pengurusan dan pembinaan dan pada masa yang sama membangunkan kegiatan hilir dan aktiviti perniagaan yang berkaitan.

33 Kenyataan Kesinambungan Syarikat Saya ingin mengambil peluang ini untuk menyampaikan satu kenyataan daripada Lembaga Pengarah bahawa setelah melaksanakan siasatan terperinci dalam hal ehwal Syarikat, Lembaga Pengarah yakin sepenuhnya bahawa Syarikat akan terus beroperasi sebagai perniagaan yang berkesinambungan.

P e n g h a rg a a n Bagi pihak Lembaga Pengarah, saya ingin merakam ucapan terima kasih dan penghargaan kepada semua pemegang saham kami, pelanggan budiman kami dan juga para pengguna kami atas sokongan dan keyakinan anda yang berterusan terhadap Syarikat kami.

Kami juga ingin menyampaikan ucapan terima kasih kepada Kerajaan Persekutuan, Kerajaan Selangor, Jabatan Bekalan Air Selangor, jabatan Overview of the Klang Gates Dam Pemandangan Empangan Klang Gates dari udara kerajaan dan badan berkanun berkaitan, pertubuhan bukan kerajaan, bank- bank dan institusi kewangan lain serta rakan-rakan perniagaan yang telah memberi sokongan dan bekerja bersama kami pada tahun 1999 dan tahun- tahun sebelumnya.

Acknowledgements Akhir kata izinkan saya merakamkan setinggi-tinggi On behalf of the Board of Directors, I wish to penghargaan kepada pihak Pengurusan dan kakitangan express my gratitude to our valued shareholders, kami atas usaha, komitmen dan semangat dedikasi our customer and our end-users for your cemerlang mereka yang telah membolehkan Syarikat continued support and confidence in our mencapai wawasan korporat, matlamat dan objektif- Company. objektifnya.

We also extend our sincere thanks to the Federal Government, the Selangor State Government, the Selangor Water Works Department, the relevant Dato’ Rozali Ismail government departments and statutory bodies, Pengerusi Eksekutif the non-governmental organisations, the various 28 April 2000 banks and other financial institutions and business associates who have supported and worked with us in 1999 and before.

Finally, let me convey my deep appreciation to our Management and staff for their outstanding efforts, commitment and dedication in enabling the Company to achieve its corporate vision, goals and objectives.

Dato’ Rozali Ismail Executive Chairman 28 April 2000

34 operations r e v i e w

tinjauan operasi

REVIEW OF 1999 TINJAUAN 1999 The year 1999 witnessed a remarkable period of Tahun 1999 menyaksikan pertumbuhan cemerlang growth and profitability for your Company, Puncak dan keuntungan kepada syarikat anda, Puncak Niaga Niaga Holdings Berhad (PNHB) and its wholly-owned Holdings Berhad (PNHB) dan syarikat milik penuhnya, subsidiary, Puncak Niaga (M) Sdn Bhd (PNSB). Several Puncak Niaga (M) Sdn Bhd (PNSB). Kejayaan ini factors converged for this to materialise. A return to merupakan hasil gabungan beberapa faktor. Sikap provident and abundant rainfall no doubt played a hemat dan rahmat limpahan hujan turut memainkan role. As did the country’s impressive rebound from the peranan. Begitu juga dengan pemulihan negara Asian economic crisis which began in 1997. daripada krisis ekonomi Asia yang bermula pada tahun 1997. Yet 1999 was also a springboard for success as PNSB overcame the challenges of the previous year, putting Tahun 1999 juga merupakan batu loncatan bagi PNSB the water crisis behind it. Production continued to kerana kejayaan mengharungi cabaran tahun lalu dan increase to meet the growing needs of an ever- sekali gus mengatasi krisis air. Pengeluaran air terus expanding population and a resurgent commercial meningkat bagi memenuhi keperluan penduduk yang and industrial sector. Production for the year totaled kian bertambah dan pembangkitan pesat sektor 732,119,000 cubic metres, up from 582,103,000 cubic komersil dan industri. Jumlah pengeluaran air bagi metres produced in 1998, an increase of 26%. tahun 1999 ialah 732,119,000 meter padu, pertambahan daripada 582,103,000 meter padu pada These increases have largely been achieved through tahun 1998, iaitu kenaikan sebanyak 26%. PNSB’s proven record in turning the challenges which water privatisation presents into opportunities for Peningkatan ini sekali lagi membuktikan kemampuan growth. PNSB has been at the forefront in providing PNSB memanfaatkan cabaran yang timbul akibat technical know-how as well as state-of-the-art penswastaan air kepada peluang pertumbuhan. PNSB technology to improve efficiency and exploit juga merupakan peneraju dalam menyediakan economies of scale. We are ably demonstrating that kemahiran teknikal serta teknologi mutakhir untuk water engineering can best be accomplished through p e rtingkatkan kecekapan dan mengeksploitasikan the technical, financial and managerial resources of ekonomi skala. Kami mampu membuktikan bahawa the private sector. kejuruteraan air dapat dilaksanakan sebaik-baiknya melalui gemblengan sumber teknikal, kewangan dan pengurusan sektor swasta. Our Mission Misi Kami •To provide a synergy of socio-economic products and services in • Melahirkan satu sinergi sosio ekonomi dan khidmat the realm of water treatment, management and distribution pembersihan, pentadbiran dan pengagihan air dan and other related businesses. perkhidmatan berkaitan.

•To cater to the increasing challenges in the demand for high • Menangani cabaran permintaan air yang berkualiti dan quality water production and distribution through the pengagihan yang berkesan melalui penekanan bert e ru s a n continuous implementation of high quality standards, efficient t e rhadap kualiti piawaian, perkhidmatan efisyen, services, human resources development, innovative technology pembangunan sumber manusia, teknologi berinovasi dan and operational systems. sistem operasi.

• To actively participate in regional and global business • M e n y e rtai secara aktif dalam perniagaan rantau ini di opportunities with linkages to the Company’s core activities and peringkat antarabangsa yang berkaitan dengan perniagaan related interests. teras Syarikat.

•To actively support and participate in programmes and activities • Menyokong dan mengambil bahagian secara aktif dalam aimed at uplifting the community’s living standards and value p rogram dan aktiviti bertujuan meningkatkan taraf hidup systems in line with the aspirations of Vision 2020. rakyat dan nilai kehidupan serasi dengan aspirasi Wawasan 2020 negara. •To address national and international concern pertaining to the p rotection, conservation and enhancement of the natural • Menyelesaikan isu-isu tempatan dan antarabangsa yang environment we live in. berkaitan dengan pemuliharaan, penjagaan dan peningkatan kualiti alam sekitar. 35 Chlorine Aluminium Poly- Fluoride Lime Sulphate electrolyte Lime Chlorine Ammonia Treated Water Matang Pagar Clear Water Filtration Pumping Station Reservoir Aeration Flow Splitter Actiflo Tank Intake Structure & River Raw Water Pumphouse

To Consumers

To Sludge Lagoon Sludge Washwater Schematic diagram of the water supply and treatment process system at SSP2 Thickening Holding & Tank Recovery Tank Rajah skimatik sistem bekalan air dan proses rawatan air di SSP2

Sabak Bern a m 2 0 1 8 1 6 Syarikat juga sedang meninjau untuk Hulu Selangor 1 7 memperluaskan kewujudannya di negeri- 1 9 2 1 Kuala Selangor Tasik Subang negeri lain di Malaysia yang dalam proses Klang Gates 0 4 melaksanakan program penswastaan 1 5 2 2 Sg Langat 3 0 0 6 0 8 masing-masing. Sebagaimana yang dapat G o m b a k 2 4 Water treatment plant 0 9 kami lihat di Selangor dan Wi l a y a h 0 3 2 6 2 7 Loji pembersihan air 1 3 23 2 5 Persekutuan, kos rawatan air mentah yang K l a n g F e d e r a l 1 2 2 9 0 5 D a m Te rr i t o ry semakin meningkat amat membebankan 0 2 1 4 E m p a n g a n P e t a l i n g 0 1 kerajaan negeri untuk mengekalkan 0 7 Hulu Langat peranannya sebagai pembekal air awam. 2 8 Kuala Langat 1 0 SSP2 Peringkat1 S e p a n g Loji Pembersihan Air SSP2 Peringkat 1 Location of Water Treatment Plants 1 1 and Dams telah dikendalikan dengan lancar Lokasi Loji Pembersihan Air dan Empangan dan pengeluaran telah beransur- a n s u r meningkat kepada 400 juta liter sehari (JLH) The Company is also looking to expand its presence to other pada hujung 1999 (keupayaan penuh ialah states in Malaysia as they implement their own privatisation 475 JLH) sejak pentauliahan tahun lalu, programmes. As we have seen in Selangor and the Federal empat bulan lebih awal daripada jadual Te rr i t o ry, the ever-rising costs of raw water treatment and tarikh siap 31 Disember 1999. Peningkatan distribution are making it increasingly difficult for state p e rolehan Kumpulan pada tahun ini governments to remain as public water providers. d i d o rong te r utamanya oleh perta m b a h a n pengeluaran air dan kadar bekalan pukal. SSP2 Stage 1 Bagi tahun-tahun mendatang, pero l e h a n SSP2 Stage 1 WTP has been running smoothly, and production has dijangka meningkat sebaik sahaja Peringkat increased steadily to 400 million litres per day (MLD) at the end of 2 siap pada hujung tahun ini. 1999 (full capacity stands at 475 MLD) since commissioning last year, four months in advance of the scheduled completion date of Kejayaan Peringkat 1 telah mendorong 31 December 1999. The Group’s higher turnover for the year was kami mengemukakan permohonan untuk due largely to increases in production volume and bulk supply mendapat sijil ISO 9002. Kami menjangkakan rates. Turnover in future years should rise further once Stage 2 is sijil ini dapat diperolehi menjelang Mei completed by the end of this year. 2000.

36 Part of the new Water Treatment Complex at SSP2 Phase 2 Sebahagian daripada Komplek Pembersihan Air baru di SSP2 Fasa 2

The success of Stage 1 has been such that we have SSP2 Peringkat 2 made submission for ISO 9002 certification. We PNSB telah memperuntukkan RM533.9 juta untuk expect to secure the certification by May 2000. pembinaan SSP2 Peringkat 2. Kerja-kerja pembinaan berjalan lancar dan awal daripada tempoh jadual. Kerja SSP2 Stage 2 kejuruteraan awam hampir siap dan kerja-kerja Mekanikal PNSB has allocated RM533.9 million for the dan Elektrik kini di peringkat akhir. Setakat Disember 1999, c o n s t ruction of SSP2 Stage 2. Construction is pembinaan sudah 87% siap. Peringkat 2 dijangka siap proceeding ahead of schedule, with civil works pada penghujung tahun 2000, jauh lebih awal daripada nearing completion and M & E works at an tarikh asal yang dijadualkan, iaitu 31 Disember 2001. advanced stage. Overall progress of works is 87% complete as of December 1999. Stage 2 is Setelah pentauliahan, N o . Water Treatment Plant C a p a c i t y expected to be completed at the end of 2000, Peringkat 2 akan menambah B i l . Loji Pembersihan Air K a p a s i t i well ahead of the original scheduled completion bekalan air ke kawasan yang 0 1 Sungai Langat 3 8 6 . 4 0 date of 31 December 2001. diperlukan di Kuala Lumpur, 0 2 Bukit Nanas 1 4 5 . 0 0 0 3 Sungai Batu 1 1 3 . 7 0 Petaling Jaya, Gombak, Shah 0 4 Batang Kali 2 0 . 3 0 0 5 Ampang Intake 1 8 . 0 0 Upon commissioning, the Stage 2 works will Alam dan Klang. 0 6 Sungai Rangkap 9 . 0 0 augment water supply to demand areas in Kuala 0 7 Cheras Mile 11 2 7 . 0 0 0 8 Sungai Rumput 4 . 5 0 Lumpur, Petaling Jaya, Gombak, Shah Alam and Sistem Agihan Bekalan Air 0 9 G o m b a k 2 2 . 5 0 Klang. Peringkat 1 (DSS1) 1 0 Bukit Ta m p o i 3 1 . 5 0 1 1 Salak Ti n g g i 1 0 . 8 0 Tahun lalu menyaksikan 1 2 N o rth Hummock 2 2 . 5 0 Distribution Supply System ketiga-tiga pakej DSS1 siap 1 3 K e p o n g 2 . 3 0 1 4 Sungai Serai 0 . 9 0 Stage 1 (DSS1) dilaksanakan. Pakej 1: Kolam 1 5 Rantau Panjang 3 1 . 5 0 The past year saw the completion and Air Dusun Kubung ke Kolam Air 1 6 B e rnam River Headworks 2 0 . 3 0 1 7 Sungai Dusun 1 . 3 0 commissioning of all three packages of DSS1. A3 mula beroperasi pada Mac 1 8 Sungai Selisek 1 . 3 0 Package 1: Dusun Kubung Reservoir to A3 Reservoir 1999. Pakej 2: Kolam Air Ma t a n g 1 9 Sungai Te n g i 1 . 3 0 2 0 K a l u m p a n g 6 . 7 0 became operational in March 1999. Package 2: Pagar ke Petaling Jaya dan Shah 2 1 Kuala Kubu Bahru 6 . 7 0 Matang Pagar Reservoir to Petaling Jaya and Shah A l a m dibuka sebaik sahaja 2 2 Sungai Buaya 0 . 9 0 2 3 Ampang Impounding 2 . 3 0 Alam opened with the completion of the final ba h a g i a n akhir saluran paip 2 4 Sungai Kro h 0 . 5 0 section of pipeline from Effingham Reservoir to daripada Kolam Air Effi n g h a m 2 5 Sungai Pangsoon 1 . 8 2 2 6 Sungai Pusu 0 . 0 9 Bukit Gasing in November 1999. Package 3: ke Bukit Gasing siap pada 2 7 Sungai Lolo 0 . 4 1 Co n s t r uction of Reservoirs, Pumphouses and M & E November 1999. Pakej 3: 2 8 Sungai Semenyih 5 4 5 . 0 0 2 9 Wangsa Maju 4 5 . 0 0 Works at Kepong Estate and Batu Estate Reservoirs Pembinaan Kolam Air, R u m a h 3 0 SSP2 Stage 1/Peringkat 1 4 7 5 . 0 0 was completed in March 1999, while the Bukit Pam dan Kerja-kerja Mekanikal Gasing Pumphouse and the Sungai Buloh dan Elektrik di Kolam Air Kepong Reservoir are scheduled for completion by mid- Estate dan Batu Estate siap pada Mac 1999, sementara 2000. Rumah Pam Bukit Gasing dan Kolam Air Sungai Buloh di j a n g k a siap pada pertengahan tahun 2000.

37 A 30° horizontal bend in a pipe trench under DSS2 Lengkok melintang 30° dalam saluran parit bawah DSS2

Projek DSS1 Bukit Gasing mempamerkan usaha PNSB dalam pemuliharaan alam persekitaran dan habitat dimana kawasan projek diperindahkan dengan lanskap dan penanaman semula tumbuh-tumbuhan, pohon dan pokok renek. Di samping itu, Syarikat juga memainkan peranan menasihati penduduk di sekitar stesen- stesen DSS1, untuk mendapatkan maklumbalas dan pendapat mereka mengenai

Cutting pipe process at the Effingham Reservoir interconnection skim lanskap dan penanaman semula di kawasan masing-masing. Proses memotong paip di Kolam Air perantaraan Effingham

Sistem Agihan Bekalan Air Peringkat 2 (DSS2) PNSB melangkah maju dan semakin terserlah kemampuannya dalam membekal air bersih bagi memenuhi keperluan air penduduk negeri yang semakin meningkat. Sebagai bukti keyakinan terhadap kepakaran dan keupayaan kami, Kerajaan Negeri Selangor telah menawarkan projek pembinaan rangkaian DSS2 kepada PNSB pada 9 September 1999. Kami yakin projek ini dapat disiapkan mengikut jadual menjelang Disember 2000.

Sebagai lanjutan kepada DSS1, DSS2 akan menyalurkan The DSS1 Bukit Gasing project also showcases tambahan 285 JLH dari SSP2 Peringkat 2 apabila beroperasi P N S B ’s eff o rts in e n v i ronmental and habitat sepenuhnya. Antara usaha kami untuk meningkatkan pre s e rv a t i o n , with extensive replanting of trees, keupayaan bekalan ke Kuala Lumpur, seksyen pertama DSS2 bush, vegetation and landscaping. Significantly, yang merangkumi satu saluran paip utama telah disiapkan the Company is also advising residents in the pada Mac 1999. vicinity of the DSS1 stations, getting their feedback and input on replanting and Penyenggaraan 27 Loji Pembersihan Air landscaping schemes for their locales. PNSB memperuntukkan sebanyak RM150 juta pada 1994 untuk membaik pulih loji-loji pembersihan air di mana 95% Distribution Supply System telah dibelanjakan setakat Disember 1999. Perbelanjaan Stage 2 (DSS2) ini m e rupakan perjanjian berkontrak PNSB untuk PNSB continues to make impressive strides in the menyenggara 27 buah loji pembersihan air di bawah supply of treated water to meet the State’s Perjanjian Penswastaan dan Konsesi (PCCA). Perbelanjaan growing water needs. In a show of confidence at ini meliputi pembaikan peralatan dan proses di antaranya our expertise and capability, the Selangor State t e rmasuk pam, alat pengudaraan, tangki pengenapan, Government awarded the construction of the pemberbukuan, sistem penapis olak buri dan penganalisa DSS2 network to PNSB on 9 September 1999. We dalam talian. Peningkatan bekalan tenaga juga termasuk are confident the project will be completed on dalam perbelanjaan ini di mana RM12.7 juta telah schedule by December 2000. digunakan untuk pencawang baru TNB di Loji Pembersihan Air Sg Langat bagi meningkatkan bekalan elektrik daripada An extension of DSS1, DSS2 will convey the 11KV kepada 33KV. additional 285 MLD from SSP2 Stage 2 when it becomes fully operational. As part of our efforts Pada tahun ini PNSB juga telah memasang sebuah sistem to enhance supply capability to Kuala Lumpur, ‘scrubber’ automatik yang baru di loji klorin Langat yang the first section of the DSS2, consisting of a boleh mengesan dan mengawal sebarang kebocoran klorin, priority line, was completed in March 1999. serta membaikinya dengan segera.

38 Refurbishment of 27 WTPs PNSB allocated RM150 million in 1994 on refurbishment of WTPs, of which 95%, was spent as of December 1999. This outlay represented a contractual agreement by PNSB that we will maintain and keep in good order all 27 WTPs which fall under the Privatisation Cum Concession Agreement (PCCA). Expenditure covered both equipment and process improvements including pumps, aerators, settling tanks, flocculators, new filter backwash systems and on-line analysers, among other items. It also included upgrades in Operasi Empangan the power supply, with PNSB kini mengendalikan tiga buah RM12.7 million alone empangan khususnya Sungai Langat, spent for the new TNB Klang Gates dan Tasik Subang. Ketika ini, substation at Sg. Langat An excavator lowering a pipe into a trench in Bukit Gasing Jengkaut menurunkan batang paip ke dalam parit di Bukit Gasing PNSB sedang berunding dengan Kerajaan WTP to upgrade the Negeri mengenai Perjanjian untuk power supply from 11KV m e n g u ruskan ketiga-tiga empangan ini to 33KV. secara tetap termasuk empangan Sungai Semenyih dan Sungai Tinggi. This year, PNSB also installed a new automatic scrubber system at the Langat chlorine plant which allows any chlorine leak to be Purata hujan yang turun di kawasan detected and quickly contained and rectified. tadahan pada tahun 1999 meningkat ketara berbanding tahun sebelumnya. Dam Operations Ketiga-tiga empangan yang kini PNSB is currently operating three dams, namely Sungai Langat, beroperasi di Sungai Langat, Klang Gates Klang Gates and Tasik Subang. Presently, PNSB is in the midst of dan Tasik Subang masing-masing negotiating the Agreement with the State Government for the mencatat kenaikan ketara sebanyak 21%, management on a permanent basis of these three dams as well as 43% dan 30%. for Sungai Semenyih and Sungai Tinggi dams.

Ramalan jangka panjang Perkhidmatan Overall catchment rainfall in 1999 improved markedly compared Kaji Cuaca Malaysia bagi tahun 2000 with the preceding year. All the three dams currently in operation menunjukkan bahawa kadar hujan at Sungai Langat, Klang Gates and Tasik Subang re c o rd e d dijangka kekal atau melebihi paras significant increases of 21%, 43% and 30%, respectively. purata. Oleh demikian, kami tidak menjangkakan berlaku sebarang masalah The Malaysian Meteorological Services’ long-range forecast for bekalan air yang serius di tiga empangan 2000 indicates rainfall levels to remain at or above average levels. ini yang sudah tentu akan meningkatkan As such, we foresee no serious storage drawdowns at any of the lagi tahap prestasi. three dams, which will obviously further improve performance levels.

39 J AWATANKUASA PENGURUSAN KRISIS Pada tahun dalam kajian, Syarikat telah menubuhkan satu Jawatankuasa Pengurusan Krisis tetap bagi menangani situasi kecemasan di samping menyelaraskan pelan dan strategi sekiranya berlaku krisis seperti bencana alam, sabotaj atau sebarang kejadian luar jangkaan. Jawatankuasa in terd i r i daripada semua ketua jabatan dan diketuai oleh Naib Pengerusi Eksekutif Syarikat.

Salah satu daripada tindakan awal Jawatankuasa ialah untuk mewujudkan Pelan Prosedur Pengurusan Krisis bagi Ibu Pejabat dan Loji-loji Pembersihan Air. Baru - b a ru ini kami telah meluaskan lagi usaha ini melalui perumusan Pelan Tindak Balas Kecemasan. Program baru ini menyokong usaha Syarikat dalam Y2K testing at SSP2 Phase 1 Ujian Y2K di SSP2 Fasa 1 persiapan keselamatan dan kecemasan melalui simulasi krisis, latihan omokan yang melibatkan penyertaan aktif pihak hospital, polis dan bomba. CRISIS MANAGEMENT COMMITTEE During the year under review, the Company Jawatankuasa Pengurusan Krisis juga bert a n g g u n g j a w a b c reated a permanent Crisis Management menyelia persediaan Syarikat dalam menangani isu Committee to deal with emergencies and to pematuhan dan perancangan kontingensi Y2K (sila lihat coordinate plans and strategy in the event of bahagian Teknologi Baru). a crisis, such as a natural disaster, sabotage or other unforeseen cataclysmic events. The PERHUBUNGAN KAKITA N G A N Committee is composed of all department Pada 1999, PNSB memberi pengiktirafan kepada penubuhan heads and is presided over by the Company’s Kesatuan Sekerja Kakitangan PNSB. Langkah ini membuka Executive Vice Chairman. jalan bagi rundingan pertama antara Kesatuan dan P e n g u rusan PNSB. Inilah pengiktirafan pertama bagi One of the Committee’s first acts was to penubuhan kesatuan dalaman bagi industri ini. Semasa establish a Crisis Management Procedure Plan laporan ini disediakan, rundingan masih berterusan dan kami for both Headquarters and WTPs. We have yakin satu penyelesaian saksama untuk semua pihak terlibat recently expanded these efforts through the dapat dipersetujui pada tahun ini. formulation of an Emergency Response Plan; the new programme augments the Company’s Syarikat sentiasa berusaha untuk merangsang semangat kerja efforts in safety and emergency preparedness kakitangan melalui amalan sikap kerja berinisiatif dan t h rough crisis simulations, mock-ups and berpasukan. Faktor-faktor ini jugalah yang mendoro n g drills, and involves the active participation of meningkatkan prestasi Syarikat. Salah satu pendekatan yang local hospitals, police and fire stations. kami amalkan untuk merangsang inisiatif dan motivasi kakitangan ialah melalui Sistem Penilaian Prestasi yang The Crisis Management Committee also menghubungkaitkan kenaikan gaji individu kepada oversaw the Company’s preparations for Y2K peningkatan produktiviti. Sistem ini menilai pro d u k t i v i t i compliance and contingency planning (see pekerja melalui indeks produktiviti yang dapat menentukan New Technologies). tanda aras untuk dijadikan asas ukuran.

40 Team building training programme in session Sessi latihan bagi membina semangat kakitangan kami

Selain itu, inisiatif lain juga turut membantu Syarikat mencapai satu lagi objektif– “rightsizing” (keseimbangan)– iaitu menyelaraskan nisbah kakitangan untuk mengoptimumkan sumber manusia supaya tidak terlalu ramai pada tahap jawatan tinggi atau rendah; mengelakkan pembaziran dan pada masa yang sama tidak terlalu kekurangan sehingga menjejaskan operasi Syarikat. Memang tidak dapat dinafikan bahawa inilah yang akan menjadi faktor persaingan penting dalam era kepesatan globalisasi abad ke 21. Opening ceremony of Puncak Niaga’s 1999 Family Day Upacara pembukaan Hari Keluarga Puncak Niaga 1999

SUMBER MANUSIA EMPLOYEE RELAT I O N S PNSB akan meneruskan amalan budaya In 1999, PNSB conferred recognition to the PNSB Trade Union of korporat berorientasikan matlamat dan Employees. This set the stage for the first collective bargaining sikap proaktif yang memberi ganjaran talks between the Union and PNSB Management. It also marked b e rdasarkan merit dan dedikasi. Pihak the first such recognition of an in-house union in this industry. p e n g u rusan sentiasa berpegang kepada Negotiations are proceeding as we go to print and we are prinsip bahawa kakitangan perlu merasakan confident an agreement mutually satisfactory to all will be diri mereka sebagai anggota penting reached sometime this year. o rganisasi kami. Kakitangan perlu diberi motivasi secara berterusan supaya mereka The Company has long sought to nurture initiative, teamwork, sentiasa cerdas dan lincah bekerja. Bagi and high morale among its employees. Indeed, these are the key mencapai tujuan ini, mereka perlu not only to enlightened management policies, but to improving m e m p e rtingkatkan pengetahuan dan p e rf o rmance and pro f i t a b i l i t y. We have always strived to kemahiran agar emosi dan mental mereka encourage worker initiative and motivation. One way is throu g h sentiasa terangsang dan sihat. Atas hakikat what we call the Perfo r mance Appraisal System, which links inilah Syarikat telah melabur RM1.4 juta individual salary increments to increased pro d u c t i v i t y. It untuk pembangunan sumber manusia pada evaluates worker productivity through a productivity index, from 1999 yang sebahagian besarnya digunakan which benchmarks can be determined and measured against. untuk pelbagai program latihan, termasuk latihan semasa bekerja, seminar, kursus, These and other initiatives are helping the Company to achieve latihan motivasi dan keagamaan, aktiviti another continuing objective– “rightsizing”– adjusting staff sosial dan kesukanan. ratios to try to optimise human resources by not being too top- heavy or bottom-heavy; by eliminating wastage, redundancy, while at the same time not spreading ourselves too thin. This will undoubtedly be a significant competitive factor as we enter the 21st Century and the era of accelerated globalisation.

41 Our people

Kumpulan Kawalan Mutu Kerja (QCC) Konsep QCC walaupun mudah, ia amat berkesan untuk memupuk sikap berinisiatif dan semangat bekerjasama sesama rakan sekerja untuk mencapai matlamat Syarikat yang sama. Sejak dilancarkan pada November 1998, Kumpulan QCC kini telah meningkat kepada 23 kumpulan– satu lagi bukti “usaha kecemerlangan” kami. QCC terdiri daripada pasukan kakitangan dalam dan antara HUMAN RESOURCES jabatan. Kesemua QCC ini berasaskan PNSB continues to nurtu r e a proactive, goal- tahap kakitangan dan bukan oriented corporate culture that rew a r ds merit pengurusan– satu kaedah yang lebih and dedication. Management has always berkesan untuk menjana idea-idea Close supervision ensures efficient processing worked on the principle that employees need dan cadangan baru bagi tujuan Penyeliaan rapi memastikan pemprosesan cekap to feel that they are a vital part of our menjimatkan kos, menyelaraskan o rganisation. In order to keep employees proses juga merangsang semangat motivated and nimble, they must also be able to increase their pekerja dan kerja berpasukan. knowledge and develop their skills, to grow both mentally and em o t i o n a l l y . For these reasons, the Company invested RM1.4 million on Syarikat bekerjasama dengan Pusat human re s o u rces in 1999, which went to a myriad of training Produktiviti Negara yang menawarkan p rogrammes, both on-the-job as well as seminars and courses, pakar runding untuk membantu latih motivational and religious training, social and sports activities. dan membimbing kakitangan kami mengendalikan latihan dan Quality Control Circle (QCC) memperkenalkan metodologi. Pada The QCC concept is a remarkably simple yet effective way to foster tahun lalu, projek QCC telah worker initiative, collaboration and partnership with fellow workers merumuskan kaedah mengurangkan and with the goals of the Company itself. Inaugurated in November kos kimia di loji seperti klorin, 1998, the Company’s Quality Control Circles (QCCs) currently number mengurangkan pembaziran kertas dan 23– another testament to our “search for excellence.” Consisting of me m p e r b a i k i sistem edaran mel. both inter and intra departmental teams of workers, the QCCs are employee-level based, not management-based– an even more effective way to generate new ideas and recommendations for cost-cutting, process-streamlining, as well as boosting worker morale and team building.

The Company works with the National Productivity Centre, whose consultants help coach and train staff to conduct training and institute methodologies. This past year QCC projects have formulated ways to reduce plant chemical costs such as chlorine, reduce paper usage and improve mail distribution systems.

Tr a i n i n g Training is an ongoing and critical component of any successful organisation. Objectives are several, complementary, long-range and Puncak Niaga’s bowling tournament Pertandingan boling Puncak Niaga potentially far- reaching in scope. Perhaps the most import a n t component is its ability to improve productivity and enhance working relationships among staff. Specific training tools of the Company include: Training Needs Analysis (TNA) and Training Needs Identification (TNI); criteria which were employed to pinpoint any skill gaps and to focus on improving core competencies.

42 Our staff’s participation in the Company’s Maal Hijrah procession Puncak Niaga’s football team in action Penyertaan kakitangan kami dalam perarakan Maal Hijrah Syarikat Pasukan Bolasepak Puncak Niaga dalam aksi

L a t i h a n The Company provides a host of other innovative training regimens; Latihan merupakan komponen they include a broad range of inter-disciplinary training programmes, terpenting dan bert e rusan dalam w h e reby staff are taught skills outside their immediate field of mana-mana organisasi berjaya. expertise, yet which can help them better understand and perform Latihan mempunyai pelbagai their jobs with a firmer grasp and appreciation of the “big picture.” For objektif, antaranya sebagai example, operations or other technical staff may learn some non- pelengkap, matlamat jangka panjang technical aspects of the organisation, such as finance or vice versa. dan berpandangan jauh. Komponen yang dikira paling penting The Company’s serious commitment to training was also evident in the ialah kemampuannya meningkatkan successful and seamless Y2K transition as well as in its management and produktiviti dan menjalin hubungan staff preparation for ISO 9002 certification. kerja antara kakitangan. Alat latihan khusus termasuk Keperluan Analisis S p o rts Club Latihan (TNA) dan Identifikasi S p o rts is another arena that re w a rds initiative, leadership and Keperluan Latihan (TNI), iaitu kriteria teamwork. Thus PNSB is proud to provide recreational and social yang digunakan untuk mengenal activities for the staff and their families through the PNSB Sports and pasti sebarang jurang kemahiran Recreational Club. dan memberi tumpuan kepada peningkatan teras kecekapan. The Company maintains its own football club and is a member of the Football Association of Selangor. Nineteen ninety-nine saw our team, Syarikat menyediakan pelbagai latihan Pasukan Bolasepak Puncak Niaga, move from the third to the second inovatif, antaranya termasuk program division of the Selangor Football League. latihan silang disiplin yang melatih kakitangan kemahiran di luar bidang Religious Activities kepakaran utama mereka tetapi dapat The Company also organises religious activities for staff and their membantu mereka supaya lebih families such as the Mass Circumcision Ceremony for the staff’s children, memahami dan melaksanakan tugas Majlis Ibadah Qurban during Hari Raya Haji, Majlis Berbuka Puasa dan b e rdasarkan gambaran yang lebih Solat Terawih, which were held at WTPs throughout Selangor. luas. Misalnya, kakitangan operasi atau teknikal boleh mempelajari aspek-aspek bukan teknikal tertentu dalam organisasi seperti kewangan atau sebaliknya.

43 Kesungguhan komitmen Syarikat terhadap latihan juga jelas terbukti dalam kejayaannya River Rescue Brigade Campaign Programme V officiated by YB Dato’ Yap Pian Hon menghadapi peralihan Y2K juga dalam Kempen Briged Penyelamat Sungai Program V dirasmikan oleh YB Dato’ Yap Pian Hon p e n g u rusan dan persediaan kakitangan untuk mendapatkan sijil ISO 9002.

Kelab Sukan Sukan merupakan satu lagi arena yang menawarkan ganjaran bagi sikap inisiatif, kepimpinan dan kerja berpasukan. Justeru itu, PNSB berbangga dapat menyediakan aktiviti rekreasi dan sosial untu kakitangan dan keluarga mereka melalui Kelab Sukan dan Rekreasi PNSB.

Presentation of gift by spouse of Executive Chairman to children at Sekendi Sabak Bernam Orphanage Penyampaian hadiah oleh isteri Pengerusi Eksekutif S y a r i k a t COMMUNITY RELATIONS kepada Kanak-kanak Rumah Anak Yatim Sekendi Sabak Bernam m e n y e n g g a r a As the water crisis of 1998 demonstrated, the spirit of kelab bola volunteerism and “gotong-royong” among our staff is strong. On sepaknya sendiri dan merupakan ahli the corporate level too, we believe that companies have an kepada Persatuan Bola Sepak Selangor. obligation to support the community, to ease the burden of the Tahun 1999 menyaksikan kejayaan needy and less fortunate, and to contribute to the well-being of Pasukan Bola Sepak Puncak Niaga all. This commitment takes many forms. The Company donated b e rganjak daripada Bahagian Ketiga RM349,173 in charitable contributions in 1999. We have invested kepada Bahagian Kedua Liga Bola Sepak both money and love in our work with orphanages and schools, Selangor. including Anak Yatim Alkhairiah, Anak Yatim Teras Jernang, Sekolah Sg Choh and Sekolah Padang Jawa. Aktiviti Keagamaan Syarikat juga menganjurkan aktiviti Our River Rescue Brigade has also been extremely successful and keagamaan untuk kakitangan sert a popular among primary school children. To date, we have keluarga mereka seperti Majlis Berkhatan recruited 600 students from 28 schools located in Selangor and the Beramai-ramai untuk anak-anak Federal Territory of Kuala Lumpur as members of the River Rescue kakitangan, Majlis Ibadah Qurban semasa Brigade. Its aim is to educate children on the importance of caring Hari Raya Haji, Majlis Berbuka Puasa dan for their rivers, streams and lakes, and to inculcate good Solat Terawih yang diadakan di Loji-Loji environmental habits and perspectives which they will retain all of Pembersihan Air yang bertempat di their lives, and hopefully will pass along to future generations. Selangor. Educating the public is perhaps the most valuable community HUBUNGAN KEMASYARAKATAN relations asset we can bestow. Our Company conducts numerous Sebagaimana yang terbukti semasa talks, seminars, expos and WTP Open Days throughout the year. krisis air pada 1998, semangat This includes everything from visiting local primary and secondary suka rela dan gotong-royong di kalangan schools, to hosting technical, scientific and industry seminars for kakitangan kami adalah kukuh. Begitu professionals and lay persons alike. juga di peringkat korporat, kami berpendapat bahawa syarikat-syarikat We wholeheartedly embrace the IT and communications age as mempunyai tanggungjawab untuk well, with the production of documentaries on water resource menyokong masyarakat, meringankan management to be aired on television stations, including RTM and beban golongan yang kurang bernasib TV3. We meet with the media regularly to keep the public aware baik dan menyumbang terh a d a p of the Company, what it’s doing, its goals and its vision. And we kesejahteraan rakyat jelata. invite everyone to visit our website at www.puncakniaga.com.my.

44 kemasyarakatanHubungan

E N V I R O N M E N TAL INITIATIVES S t ructural Appro a c h e s The Company works closely with state and federal authorities such as the De p a r tment of Environment and the Ministry of Health to identify potential source s of pollutants. The Company also classifies and keeps an inventory of suspected pollutants/polluters, and advises and assists federal and state authorities as and when req u e s t e d .

Regular analysis is also performed in cooperation with an independent lab to monitor and test water from intakes from all WTPs, which is then submitted to the relevant authorities, with comments and recommendations. There were 809

cases of raw water pollution recorded in 1999, reflecting a dramatic increase of Visit by Hospital Universiti Kebangsaan Malaysia to Wangsa Maju WTP Lawatan rombongan Hospital Universiti Kebangsaan 22.2%. In addition, several unscheduled shutdowns of WTPs occurred due to Malaysia ke Loji Pembersihan Air Wangsa Maju incidences of raw water violations, which accounted for nearly half (45.3%) of Komitmen ini boleh dizahirkan dalam beberapa cara. Syarikat the total unscheduled shutdowns. As telah menghulur sumbangan sebanyak RM349,173 kepada badan- shutdowns adversely affect re v e n u e , badan kebajikan pada 1999. Kami juga melabur wang dan PNSB is continuously seeking ways to mencurah kasih sayang dalam kerja-kerja amal kami dengan minimise them, particularly those which sekolah dan rumah anak yatim, termasuk Rumah Anak Yatim are caused by raw water violations and Alkhairiah, Rumah Anak Yatim Teras Jernang, Sekolah Sg Choh dan power outtages. Sekolah Padang Jawa.

The River Warning Monitoring System Briged Penyelamat Sungai kami juga telah berkhidmat dengan (RWMS) is an automated on-line system cemerlang dan begitu popular di kalangan murid-murid sekolah which tests certain water parameters rendah. Setakat ini kami telah melatih 600 orang pelajar dari 28 such as pH and contaminant levels. The buah sekolah di Selangor dan Wilayah Persekutuan Kuala Lumpur system takes samples every hour, 24 sebagai ahli Briged ini. Tujuannya adalah untuk mendidik kanak- hours a day, and provides a built-in kanak mengenai pentingnya memelihara sungai, anak sungai dan advance warning to address pro b l e m tasik di samping menyemai tabiat dan perspektif positif terhadap situations or even shut down the system alam sekitar. Amalan baik ini akan mereka warisi sepanjang hayat if necessary until the problem is dan kemungkinan dapat diajar dan diteruskan oleh generasi akan identified and remedied. The first datang. automated RWMS is already operating in Sungai Langat. The second system is Mendidik orang ramai merupakan aset hubungan masyarakat being installed at SSP2 and is expected to paling bernilai kepada kami. Syarikat menganjurkan pelbagai be commissioned by December 2000. ceramah, seminar, pameran dan Hari Terbuka Loji Pembersihan Air sepanjang tahun. Aktiviti ini termasuk lawatan ke sekolah rendah We have expanded these tests to dan menengah, menganjur seminar industri, teknikal dan saintifik include regular spot-checks, or “Sanitary kepada golongan profesional dan orang awam. S u rveys” of the river system itself in Selangor and the Federal Te rr i t o ry, Secara menyeluruh dan bersungguh kami juga memanfaatkan to monitor a wider area. The surveys kaedah Teknologi Maklumat dan telekomunikasi dengan comprise water quality analysis and penerbitan filem dokumentari mengenai pengurusan sumber air research and an on-line water quality untuk disiarkan di stesen televisyen, termasuk RTM dan TV3. Kami monitoring programme. sering berbincang dengan pihak media untuk memberi kesedaran kepada orang ramai tentang peranan Syarikat, matlamat dan wawasannya. Selain itu, kami juga mempelawa anda semua untuk melawat tapak web kami di www.puncakniaga.com.my.

45

I N I S I ATIF ALAM PERSEKITA R A N Pendekatan Stru k t u r Syarikat bekerjasama dengan badan-badan berkuasa Persekutuan dan negeri yang relevan seperti Jabatan Sekitar Alam dan Kementerian Kesihatan untuk mengenal pasti sumber-sumber bahan cemar berpotensi. Syarikat juga membuat klasifikasi dan inventori bahan cemar/pencemar yang disyaki dan menasihati serta membantu badan-badan berkuasa bila diperlukan.

Analisis juga kerap dilakukan dengan kerjasama makmal bebas untuk memantau dan menguji contoh air dari semua Loji Pembersihan Air dan hasil kajian dihantar ke pihak-pihak berkuasa berkenaan lengkap dengan komen dan cadangan. Pada 1999 Students being briefed on the water treatment process at Bukit Nanas WTP t e rdapat 809 kes pencemaran air Taklimat mengenai proses rawatan air kepada pelajar-pelajar di Loji Pembersihan Air Bukit Nanas mentah dan angka ini mencerminkan kenaikan ketara sebanyak 22.2%. The Company has even enlisted the Selain itu, beberapa loji pembersihan air terpaksa ditutup tidak assistance of the public, with a 24-hour toll- mengikut jadual akibat kejadian pencemaran air mentah. fr ee hotline (Telephone No. 1 800 88 3254) Kejadian-kejadian seperti ini adalah hampir separuh (45.3%) to re p o rt on suspected river pollution daripada jumlah kes penutupan tidak berjadual. Memandangkan practices or violations. To increase public penutupan loji pembersihan air menjejas pendapatan dengan awareness even further, PNSB participates teruk, PNSB sentiasa mencari jalan untuk mengurangkan masalah in numerous enviro n m e n t a l - re l a t e d in i , terutamanya yang berpunca daripada pencemaran air mentah exhibitions on sources of river pollution and dan gangguan bekalan elektrik. on how vigilance among the public in this regard can be heightened. Sistem Pengawasan Amaran Sungai (RWMS) ialah sistem automasi dalam talian yang menguji parameter tertentu air sepert i N o n - s t ructural Appro a c h e s kandungan pH dan tahap pencemaran. Sistem ini mengambil As touched on above, education remains contoh air setiap jam bagi 24 jam sehari dan mempunyai ciri a cornerstone of our blueprint for a amaran sedia pasang bagi menyediakan amaran awal untuk responsible environmental policy. The menangani situasi bermasalah atau jika perlu menutup sistem Company has therefore launched a new sehingga punca masalah dikenal pasti dan dipulihkan. RWMS five-year programme based on education at berautomasi yang pertama telah dipasang di Sungai Langat. all levels, but with an emphasis on primary Sistem kedua sedang dipasang di SSP2 dan dijangka beroperasi education. Our senior management staff Disember 2000. visit local schools to provide information on PNSB’s operations, with special focus on Bagi tujuan memantau kawasan yang lebih luas, kami juga telah water conservation issues and other meluaskan ujian ini untuk membuat pemeriksaan mengejut environmentally healthy practices. secara kerap atau “kajian kebersihan” ke atas sistem sungai di Selangor dan Wilayah Persekutuan. Kajian ini merangkumi penyelidikan dan analisa kualiti air dan juga pro g r a m pemantauan kualiti air dalam talian.

48 Syarikat telah berusaha untuk mendapatkan bantuan orang awam dengan menyediakan talian bebas tol 24 jam (No. Telefon 1 800 88 32 5 4 ) untuk memudahkan laporan mengenai amalan pencemaran sungai yang disyaki. Bagi meningkatkan lagi kesedaran masyarakat, River Rescue Brigade logo Logo Briged Penyelamat Sungai PNSB turut menyertai pelbagai pameran berkaitan alam sekitar mengenai punca-punca pencemaran sungai dan bagaimana keprihatinan masyarakat terhadap masalah ini dapat dipertingkatkan.

Company familiarisation tours to our Pendekatan Bukan Stru k t u r WTPs by school children, students from Susulan daripada pendekatan di atas, apa yang nyata ialah pendidikan local and overseas colleges, universities tetap merupakan asas penting bagi merangka satu dasar alam and related organisations will not only persekitaran yang bertanggungjawab. Justeru be continued, but shall be expanded. itu, Syarikat telah melancarkan satu program T h roughout 1999, Puncak Niaga b a ru untuk jangka masa lima tahun conducted special tours to our WTPs by berdasarkan pendidikan bagi semua peringkat a broad spectrum of groups, both local dengan penekanan kepada pendidikan and foreign. These included visits by rendah. Pegawai-pegawai pengurusan kanan the Waterworks Department of Hong kami sentiasa membuat lawatan ke sekolah- Kong, teachers and students from the sekolah tempatan untuk memberi maklumat Japanese School of Kuala Lumpur, the mengenai operasi PNSB dengan tumpuan Japanese International Corporation khusus kepada isu-isu pemuliharaan air A g e n c y, a fact-finding org a n i s a t i o n dan amalan-amalan sihat berkaitan alam f rom Mongolia (“WHO FELLOWS”), persekitaran. and the National Association of Gifted Children, to name just a few. P rogram lawatan suai kenal ke Loji Pembersihan Air oleh rombongan sekolah, Our media campaign will be expanded kolej, universiti dan org a n i s a s i - o rg a n i s a s i with emphasis in the electronic media berkaitan bukan sahaja diteruskan malah akan and multimedia to keep re l e v a n t diperluaskan. Sepanjang 1999, PNSB telah water issues in the public forum. We mengendalikan pelbagai lawatan khas ke Loji- shall also continue to produce and loji Pembersihan Air oleh rombongan dari distribute pamphlets and other dalam dan luar negara. Antaranya ialah i n f o rmative material on water lawatan oleh Waterworks Department of Hong conservation to the public and to other Kong, kumpulan guru dan pelajar dari Sekolah interested parties. Jepun, Kuala Lumpur, Japanese International Corporation Agency, organisasi penyelidikan And we will be working with dari Mongolia (“WHO FELLOWS”) dan governmental bodies to develop and Persatuan Kanak-kanak Istimewa Malaysia. implement more enviro n m e n t a l Didi, our River Rescue Brigade mascot a w a reness and water conserv a t i o n Didi, maskot Briged Penyelamat Sungai kami practices.

Bersih Amalan Kami

49 The Actiflo system at SSP2 Phase 1 Sistem Actiflo di SSP2 Fasa 1

NEW TECHNOLOGIES Kempen media kami akan diperluaskan dengan penekanan kepada In order to continue to impro v e media elektronik dan multimedia bagi menonjolkan isu-isu air yang efficiency and performance utilising the relevan di forum-forum awam. Syarikat juga akan meneruskan latest in cutting-edge technologies, your usaha menerbit dan mengagih-agihkan risalah dan bahan Company invested in major new maklumat lain mengenai pemuliharaan air kepada orang awam information technology systems in the dan pihak-pihak lain yang berminat. Kami juga akan bekerjasama operations, finance, and billing sectors, dengan badan-badan kerajaan untuk menggiatkan lagi amalan while at the same time implementing tentang kesedaran alam sekitar dan pemuliharaan air. strategies to meet the Y2K challenge. Total IT capital expenditure in 1999 TEKNOLOGI BARU amounted to RM702,076. Bagi meneruskan usaha menggunakan teknologi baru dan terkini untuk meningkatkan kecekapan dan prestasi, Syarikat anda telah The Company is also replacing its current melabur dalam sistem teknologi maklumat utama yang baru dalam accounting/financial system with sektor-sektor operasi kewangan dan pengebilan dan pada masa powerful SAP R/3 technology, which is yang sama telah melaksanakan strategi-strategi untuk mengatasi widely considered the most advanced masalah Y2K. Perbelanjaan modal Teknologi Maklumat pada tahun software system of its kind today. R/3 1999 berjumlah RM702,076. should be fully implemented by the end of 2000. Syarikat juga akan menggantikan sistem perak a u n a n / k e w a n g a n lama dengan teknologi SAP R/3 yang diakui ramai pengguna Other IT expenditure included system sebagai sistem perisian paling maju pada masa ini. R/3 akan enhancements, such as company-wide dilaksanakan sepenuhnya menjelang akhir tahun 2000. intranet expansion of its Integrated Office Automation System (PINTAS) and Perbelanjaan Teknologi Maklumat lain termasuk sistem the inclusion of individual department peningkatan seperti perluasan rangkaian Intranet dalam Sistem production data, archival material, QCC Automasi Pejabat Bersepadu (PINTAS) dan kemasukan data material and the annual report. pengeluaran setiap jabatan, bahan khazanah, bahan QCC dan laporan tahunan.

50 S T R ATEGIC RESOURCE CENTRE (SRC) P U S AT SUMBER STRATEGIK (SRC) SRC is a vital tool in the gathering and SRC adalah alat penting bagi dissemination of timely and relevant corporate, pengumpulan dan pengagihan scientific, technical and industrial information. As maklumat korporat, saintifik, a re s o u rce centre, it is also responsible for teknikal dan industri yang tepat undertaking research activities and to prepare dan cepat. Sebagai pusat sumber, p resentation materials for PNHB’s top-level SRC juga bert a n g g u n g j a w a b management in participating conferences, as well mengendalikan aktiviti as management talks organised locally and penyelidikan dan menyiapkan internationally. bahan maklumat bagi kegunaan pihak pengurusan kanan PNHB ke

In 1999, PNHB participated in a number of persidangan atau ceramah yang New raw water pumps at SSP2 Phase 2 conferences during which our top management, dianjurkan di dalam dan luar Pam air mentah baru di SSP2 Fasa 2 which included the Executive Chairman and negara. Executive Vice Chairman, presented and disseminated several influential papers on the Pada 1999, PNHB turut serta dalam beberapa persidangan subject of water treatment and supply (the titles di mana pihak pengurusan kanan, termasuk Pengerusi of these papers appear in italics below): Eksekutif dan Naib Pengerusi Eksekutif, membentang dan menyebar kertas kerja mengenai tajuk rawatan dan Jan Water Asia 1999 Intern a t i o n a l bekalan air (tajuk kertas kerja disenaraikan di bawah Conference & Exhibition on Asia Water dalam italik): Industry O rganised by Prajati [Maidan], New Jan Water Asia 1999 International Conference & Dehli, India Exhibition on Asia Water Industry “Private Sector Participation in Wat e r Anjuran Prajati [Maidan], New Dehli, India Ut i l i t i e s ” “Private Sector Participation in Water Utilities”

Mar National Water Conferen c e Org a n i s e d by Asian Strategic Leadership Mac National Water Conferen c e Institute [ASLI], Kuala Lumpur, Malaysia Anjuran Asian Strategic Leadership Institute “G r owth Opportu n i t i e s in the Malaysian [ASLI], Kuala Lumpur, Malaysia Water Industry” “G r owth Opportu n i t i e s in the Malaysian Water Industry” Apr The Future of Water Supply & Management in the APEC Region Apr The Future of Water Supply & Management in the O rganised by Academy of Science APEC Region Malaysia Anjuran Akademi Science Malaysia “Water for Domestic and Industrial Use” “Water for Domestic and Industrial Use”

Sep 22nd World Water Congres s Sep 22nd World Water Congres s Or ganised by International Water Supply Anjuran In t e r national Water Supply Association, Association, Buenos Aires, Arge n t i n a Buenos Aires, Arge n t i n a “Benefits of the Expanding Privatisation of “Benefits of the Expanding Privatisation of the the Malaysian Water Supply System” Malaysian Water Supply System”

51 YEAR 2000 COMPLIANCE Your Company is pleased to announce the successful and seamless transition to the new year with no Y2K-related computer problems and no disruption of service. While we had e v e ry confidence beforehand in the reliability of our equipment, t e c h n o l o g y, and personnel, the Company nevertheless pre p a red and implemented a thre e - p h a s e contingency plan which covered:

1. The period leading up to Y2K YBhg Dato’ Rozali and YBhg Datuk Shariff being briefed on the Y2K test procedure at SSP2 YBhg Dato‘ Rozali and YBhg Datuk Shariff diberi taklimat mengenai prosedur ujian Y2K di SSP2 (testing and retesting of equipment, training of personnel, test runs, and PEMATUHAN TAHUN 2000 logistics preparation); Dengan bangganya kami memaklumkan bahawa Syarikat 2. The roll-over period (actual anda telah berjaya melangkah ke alaf baru tanpa mengalami implementation of Y2K, close sebarang masalah berkaitan Y2K atau gangguan kepada monitoring of plant performance, perkhidmatan. Walau sebelum ini kami begitu yakin dengan and rectification and re c o v e ry of kemampuan peralatan, teknologi dan kakitangan kami, system); and Syarikat tetap membuat persiapan dan melaksanakan pelan 3. The post roll-over phase, during kontingensi tiga fasa yang meliputi: which all systems will continue to be monitored and tested up until a 1. Tempoh sebelum Y2K (ujian dan ujian semula peralatan, final Y2K report is submitted. latihan kepada kakitangan, peringkat percubaan dan persiapan logistik); Full back-up of the software system was also on 2. Tempoh peralihan (pelaksanaan Y2K sebenar, pemantauan standby during the roll-over period. All systems

1 rapi prestasi loji dan membaiki serta pemulihan sistem); dan were shut down 1 /2 hours before midnight as a 3. Fasa selepas tempoh peralihan di mana pemantauan dan p recaution; when turned back on it was ujian semua sistem akan diteruskan sehingga laporan akhir verified that Y2K had not affected the system. Y2K diserahkan. Although fully automated, SSP2 systems can Sistem perisian sokongan penuh juga disiap sedia semasa also be operated manually. And as an added tempoh peralihan. Sebagai langkah berhati-hati, kesemua measure to ensure that operations are not

1 sistem dimatikan 1 /2 jam sebelum tengah malam; apabila affected by external factors like power failure, dihidupkan semula, sistem disahkan tidak terjejas oleh pepijat the plant is equipped with generators which Y2K. have the capacity to supply power at full 100% operating load for Stage 1 and 60% for Stage 2, Walaupun sistem SSP2 dikendalikan secara automatik together with adequate fuel storage for the sepenuhnya, ia juga boleh dikendalikan secara manual. Bagi task. memastikan operasi tidak terjejas oleh faktor luar seperti gangguan bekalan elektrik, loji ini dilengkapkan dengan We would also like to thank the National Y2K janakuasa yang mampu membekal tenaga pada tahap muatan Committee, whose officials and consultants operasi penuh 100% untuk Peringkat 1 dan 60% untuk worked with PNSB to ensure a flawless Peringkat 2, dengan simpanan bahan api yang mencukupi transition. bagi tugas tersebut.

52 Kami juga ingin mengucapkan terima kasih kepada semua pegawai dan pakar runding Jawatankuasa Y2K Negara yang telah bekerjasama dengan PNSB untuk memastikan peralihan berjalan lancar tanpa sebarang gangguan. YBhg Dato’ Rozali and YBhg Datuk Mohd Shariff during a visit to the Y2K test facilities YBhg Dato’ Rozali and YBhg Datuk Mohd Shariff semasa lawatan ujian Y2K PROSPEK MASA DEPA N Pr ospek masa depan jangka panjang adalah cerah. Kini, PNSB merupakan pembekal air bersih yang FUTURE PROSPECTS terbesar di Malaysia. Kajian menunjukkan bahawa Prospects for sustained long-term growth are robust. At pe r mintaan air negara bagi tempoh beberapa tahun present, PNSB is the nation’s largest provider of treated mendatang akan sentiasa meningkat pada kadar water. Studies show that the demand for water in empat hingga lapan peratus. Pada 1999, permi n t a a n Malaysia over the next few years will rise at a fairly air di Selangor dan Wilayah Persekutuan adalah 2828 constant four to eight percent annual growth rate. In JLH, sementara keupayaan penuh semua loji 1999, water demand in Selangor and the Federal pembersihan air adalah 2973 JLH. Ini berm a k n a Te rr i t o ry was 2828 MLD, while total WTP capacity perbezaan antara permintaan dan bekalan hanyalah registered 2973 MLD. This means that the difference 145 JLH, sekadar lima peratus sahaja. Unjuran between demand and supply was just 145 MLD, a scant perbezaan masa depan juga berada dalam five percent. Future projected differentials fall within the lingkungan anggaran yang sama, ini belum lagi same narrow range, and do not take into account diambil kira perubahan cuaca, kemalangan dan vagaries of weather, accidents, and other variables. fa k t o r -faktor lain. Ac c o r ding to another recent independent study, the Mengikut satu lagi kajian bebas terkini, unjuran pr ojected population of Selangor and Kuala Lumpur will penduduk Selangor dijangka meningkat daripada 5.37 gr ow from 5.37 to 7.94 million residents between 2000 juta kepada 7.94 juta antara 2000 hingga 2010, and 2010, an increase of 48%; whilst the total water kenaikan sebanyak 48%; sebaliknya jumlah demand within that period will increase from 3088 MLD pe r mintaan air dalam tempoh yang sama dijangka to 5382 MLD, a whopping 74% rise, where a one perce n t meningkat daripada 3088 JLD kepada 5382 JLH, in c r ease in population roughly equates to a two perce n t lonjatan sebanyak 74%. Ini menunjukkan bahawa jump in demand. pe r tambahan satu peratus penduduk menyamai dua peratus pertambahan permi n t a a n . The country’s economic engines of growth– agriculture, manufacturing, construction, property development, IT, Sektor yang menjana pertumbuhan ekonomi negara– tourism and other service industries– are all dependent pe r tanian, perkilangan, pembinaan, pembangunan on safe and steady sources of water. ha r tanah, Teknologi Maklumat, pelancongan dan lain- lain industri perkhidmatan, kesemuanya berga n t u n g The Privatisation Policy guidelines formulated by the kepada sumber air yang berte r usan dan selamat. Government in 1983 opened the way to the private sector’s involvement in water supply and management, and has to a large extent paved the way toward ameliorating these problems through the timely intervention of market forces. PNSB has, almost since its inception, assumed a pivotal role in this transformation. Today, we are the largest supplier of treated water to the state of Selangor and the Federal Territory, accounting for 62% of the water requirements in Selangor and Kuala Lumpur.

53 Thus, the trend towards further water privatisation in Malaysia continues briskly, with the Government’s desire to open the industry to market forces matched by its concern over the rapidly rising costs of building new facilities and infrastructure. Therefore, the blueprint for responsible water management in the 21st century is to a large extent driven by economic factors. The bulk capital outlays now required to build new facilities are enormous. States today can barely cover operating costs, much less new capital-intensive costs. For this reason they have invited the private sector to come in.

In early 2000, a significant new development has Garispanduan Dasar Penswastaan yang dirumuskan oleh been PNSB’s invitation to participate in SSP3, which Kerajaan pada 1983 membuka peluang kepada sektor is currently in negotiation. SSP3, a 30-year swasta melibatkan diri dalam pembekalan dan concession agreement between Syarikat Pengeluar pengurusan air dan membolehkan masalah industri ini Air Sungai Selangor Sdn Bhd (SPLASH) and the diselesaikan melalui kuasa pasaran. Semenjak Selangor State Government was signed on 24 ditubuhkan, PNSB telah memainkan peranan penting J a n u a ry 2000. The RM2.146 billion project will dalam perubahan senario ini. Kini, Syarikat merupakan harness water from Sungai Selangor, and includes pembekal terbesar air bersih di negeri Selangor dan the construction of a dam at Sungai Selangor, near Wilayah Persekutuan dengan memenuhi kira-kira 62% Kuala Kubu Bahru and two WTPs at Rasa and Bukit daripada keperluan air di kedua-dua kawasan ini. Badong. The scheduled pro g re s s i v e - s t a g e d completion is 2002–2004. Dasar penswastaan air di Malaysia masih giat diteruskan selaras dengan hasrat Kerajaan untuk membuka industri We are of course pleased and honoured by the ini kepada kuasa pasaran memandangkan kos Selangor State Govern m e n t ’s decision to invite membangunkan kemudahan dan infrastruktur baru PNSB’s participation in SSP3. Acceptance by the adalah tinggi dan semakin meningkat. Oleh demikian, Company of the revised proposed equity stake of dasar pengurusan air yang bertanggungjawab pada abad 25% (from an initial proposal of 20% equity) will ke 21 ini didorong terutamanya oleh faktor ekonomi. depend on whether we can agree to terms with the Modal asas yang diperlukan untuk membangunkan other parties and also on whether we believe our kemudahan baru adalah sangat besar. Kerajaan negeri p a rticipation will provide our investors and sekarang menghadapi kesukaran untuk menampung kos shareholders with a suitable rate of return. operasi bekalan air, apatah lagi kos modal yang amat tinggi untuk membina kemudahan baru. Atas alasan Should on-going negotiations bear fruit and we do inilah kerajaan telah mempelawa sektor swasta untuk a c q u i re satisfactory participation in SSP3, the mengambilalih tanggungjawab berat ini. Company will then be even more strategically positioned as the main player in the supply, Pada awal tahun 2000, PNSB telah dipelawa untuk terlibat treatment and distribution of water to Selangor and dalam SSP3 yang kini masih dalam peringkat perun d i n g a n . the Federal Territory. Ini adalah satu perkembangan baru yang penting kepada PNSB. SSP3, perjanjian konsesi 30 tahun antara Syarikat Closely related to pure cost considerations in Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) dan devising a strategy for the future are other realities: Kerajaan Negeri Selangor, telah ditandatangani pada 24 the raw water retrieved today is more polluted than Januari 2000. Projek bernilai RM2.146 bilion ini akan in the past, which means higher treatment costs and menjana air daripada Sungai Selangor dan merangkumi the application of more advanced tre a t m e n t pembinaan sebuah empangan di Sungai Selangor, technology. The source of the water itself originates b e rdekatan Kuala Kubu Bahru dan dua buah loji further and further from its ultimate destination– pembersihan air di Rasa dan Bukit Badong. Projek ini the consumer. This also translates into higher costs. dijadualkan siap secara berperingkat antara 2002–2004.

54 Kami memang berasa bangga dan tersanjung dengan keputusan Kerajaan Negeri Selangor mempelawa PNSB untuk turut serta dalam SSP3. Penerimaan oleh Syarikat ke atas semakan cadangan kepentingan ekuiti sebanyak 25% (daripada cadangan awal 20%) akan berga n t u n g kepada persetujuan syarat oleh semua pihak yang terlibat dan juga atas keyakinan sama ada penglibatan kami ini akan menghasilkan nilai pulangan yang setimpal kepada para pelabur dan pemegang saham ka m i .

Sekiranya rundingan membuahkan hasil dan kami mempero l e h i penglibatan yang memuaskan dalam SSP3, maka Syarikat akan menempa kedudukan yang lebih strategik sebagai pembekal utama SSP2 Administration Building Bangunan Pentadbiran SSP2 dalam bekalan, rawatan dan agihan air ke Selangor dan Wilayah Persekutuan.

Dalam mencorak strategi masa depan, pertimbangan kos semata-mata tidak mencukupi. Pada hakikatnya kami perlu memikirkan tentang perkara-perkara lain: air mentah yang kami perolehi hari ini adalah lebih tercemar daripada dahulu, oleh itu kos rawatannya adalah lebih tinggi, juga penggunaan teknologi rawatan yang lebih maju. Sumber air kini semakin jauh daripada destinasi–pengguna, ini menyebabkan peningkatan kos penyaluran. With its already considerable resources and Berdasarkan keluasan sumber air dan kepakaran yang sedia expertise, the Company is ideally positioned ada, Syarikat berada dalam kedudukan mantap untuk to maintain a leadership role in the face of mengekalkan peranannya sebagai pemimpin yang tabah these new challenges. Our long-term plan is menghadapi segala cabaran baru. Rancangan jangka panjang three-fold: kami berserampang tiga: First, to consolidate efforts within Selangor P e rtama, untuk menggembleng dan memantapkan usaha and the Federal Te rr i t o ry, not only by dalam Selangor dan Wilayah Persekutuan, bukan sekadar expanding supply and treatment services, but meluaskan khidmat bekalan dan rawatan air malah dalam also in the distribution sector. sektor agihan air juga. Second, we are looking to expand Kedua, meninjau peluang menembusi pasaran baru dalam a g g ressively into new markets within Malaysia secara agresif. Peranan sebagai peneraju industri Malaysia. Our leadership role gives us the memberi kami kelebihan dalam membuat bida bagi konsesi edge when bidding for water privatisation penswastaan air di negeri-negeri lain yang kini sedang dalam concessions in other states; entry into some of kajian Syarikat. these new markets is currently under study.

Ketiga, kami memang ingin menembusi pasaran baru di luar T h i rd, we are eager to tap new markets sempadan Malaysia. Kami telahpun mula menilai potensi pasaran beyond Malaysia’s borders. We have already di rantau ASEAN. Dengan pemulihan ekonomi Asia Tenggara dan begun to assess the market potential in the usaha penswastaan yang semakin giat, PNHB yakin dapat bersaing ASEAN region. As Southeast Asia’s economies untuk mendapatkan projek infrastruktur skala besar di seluruh rebound and water privatisation eff o rt s rantau Asia. intensify, PNHB will be admirably positioned to compete for large-scale infrastru c t u re projects throughout the region.

55 corporate highlights Eventss o r otan peristiwa korporat Corporate Events Acara Korporat

11 February 11 Februari Briefing to YB Dato' Fuad Hassan Taklimat kepada YB Dato’ Fuad on the Dam Levels. Hassan mengenai paras Empangan.

6 March 6 Mac River Rescue Brigade Campaign Kempen Briged Penyelamat Programme V, officiated by YB Sungai Program V dirasmikan oleh Dato' Yap Pian Hon, Member of YB Dato’ Yap Pian Hon, Ahli Parliament of Serdang. Parlimen Serdang.

13 March 13 Mac Participation of Puncak Niaga staff Penyertaan kakitangan Puncak at the DYMM Sultan Selangor ’s Niaga di perarakan lintas hormat 73rd Birthday, march-pass parade. sempena Hari Keputeraan ke73 DYMM Sultan Selangor. 20 March SSP2 Backwash Pump Witness Test 20 Mac in Sydney, Australia. Ujian SSP2 Backwash Pump Witness di Sydney, Australia. 26 March Visit to Wangsa Maju WTP by 26 Mac delegation from Fukuoka City, Lawatan ke Loji Pembersihan Air Japan. Wangsa Maju oleh delegasi dari Bandaraya Fukuoka, Jepun. 9 April Signing Ceremony of the Second 9 April Amendment to the Construction Majlis Menandatangani Pindaan Cum Operation Agreement. Kedua ke atas Perjanjian Pembinaan dan Operasi. 5 May Visit by delegates from Dewan 5 Mei Perniagaan Melayu Selangor to Lawatan oleh rombongan Dewan Puncak Niaga's head office. Perniagaan Melayu Selangor ke ibu pejabat Puncak Niaga. 7-9 May Earth Day Camp At Morib, 7-9 Mei organised by the Malaysian Nature Kem Hari Bumi di Morib yang Society (MNS) and sponsored by dikelolakan oleh Persatuan Alam Puncak Niaga. Malaysia dan di bawah anjuran Puncak Niaga.

56 20 May 20 Mei Students from the Japanese School Lawatan pendidikan serombongan of Kuala Lumpur made an pelajar-pelajar dari Sekolah Jepun educational visit to Wangsa Maju Kuala Lumpur ke Loji Pembersihan WTP and Klang Gates Dam. Air Wangsa Maju dan Empangan Klang Gates. 22 May Puncak Niaga’s team of 40 22 Mei personnel represented the Pasukan Puncak Niaga seramai 40 Company on the Banner & Slogan orang kakitangan mewakili Competition in conjunction with Syarikat di Pertandingan Labour Day at Stadium Putra, Cogankata & Panji-panji sempena Bukit Jalil. Hari Buruh di Stadium Putra, Bukit Jalil. 25 May Visit by 25 delegates from 25 Mei provinces throughout China to Lawatan oleh delegasi 25 orang Bukit Nanas WTP. dari wilayah-wilayah di Negeri China ke Loji Pembersihan Air 15 June Bukit Nanas. Educational visit on “Rivers and the Importance of Water” at St. 15 Jun John Primary 1. Lawatan pendidikan mengenai “Sungai dan Pentingnya Air” di 20 June Sekolah Rendah St. John 1. Puncak Niaga participated at the World Environment Day Exhibition 20 Jun at FRIM. Puncak Niaga turut serta di Pameran Hari Alam Sekitar 24 July Sedunia di FRIM. River Rescue Brigade Campaign Programme VI at Sg Batu WTP, 24 Julai officiated by the YBhg Dato’ Tang Kempen Briged Penyelamat See Hang, Selangor State Sungai Program Vl dirasmikan Executive Councillor, Chairman of oleh YBhg Dato’ Tang See Hang, Village Development, Research Anggota Majlis Perbandaran and Development, and the State Negeri Selangor juga selaku Assemblyman of Rawang. Pengerusi Pembangunan Kampung, Penyelidikan dan 9 August Pembangunan, Ahli Dewan Educational visit by delegates Undangan Rawang. from Hong Kong Waterworks Department to Wangsa Maju WTP. 9 Ogos Lawatan pendidikan oleh rombongan dari Jabatan Bekalan Air Hong Kong ke Loji Pembersihan Air Wangsa Maju.

57 Events

14 August 14 Ogos River Rescue Brigade Campaign Kempen Briged Penyelamat Programme VII at Bukit Nanas Sungai Program VII di Loji WTP, officiated by YBhg Tan Sri Pembersihan Air Bukit Nanas Dato’ Kamaruzzaman Shariff, dirasmikan oleh YBhg Tan Sri Mayor of Kuala Lumpur. Dato’ Kamaruzzaman Shariff, Datuk Bandar Kuala Lumpur. 17 August Educational visit to Primary School 17 Ogos on “River and the Importance of Lawatan pendidikan ke Sekolah Water” at Methodist Boys School, Methodist Lelaki Jalan Hang Jebat Jalan Hang Jebat. mengenai “Sungai dan Pentingnya Air.” 28 August Official launching of Puncak 28 Ogos Niaga’s Quality Control Circle. Pelancaran rasmi Kumpulan Kawalan Mutu Kerja Puncak Niaga. 5-13 September Launch of Sukan Selangor 5-13 September (SUKSES) by DYMM Tengku Idris Pelancaran Sukan Selangor Shah Ibni Sultan Salahuddin Abdul (SUKSES) oleh DYMM Tengku Idris Aziz Shah Al-Haj, Regent of Shah Ibni Sultan Salahuddin Abdul Selangor, at Kompleks Sukan Aziz Al-Haj, Pemangku Sultan Kuala Selangor. Selangor di Kompleks Sukan Kuala Selangor. 6 September Educational visit by delegates 6 September from Bangladesh Education Lawatan pendidikan oleh delegasi Department. dari Jabatan Pendidikan Bangladesh. 18 September Puncak Niaga Family Day 1999 at 18 September Stadium Shah Alam. Hari Keluarga Puncak Niaga 1999 di Stadium Shah Alam. 20 September Cheque Presentation Ceremony 20 September for the Football Association of Majlis Penyampaian Cek kepada Selangor (FAS). Persatuan Bola Sepak Selangor (FAS). 4 November Cheque Presentation Ceremony by 4 November Puncak Niaga to the Treasury of Majlis Penyampaian Cek kepada the Bumiputra Youth Perbendaharaan Usahawan Belia Entrepreneur, Malaysia. Bumiputra, Malaysia.

58 11 November 11 November Educational programme at Pr ogram pendidikan di Convent Convent Bukit Nanas 1 on the Bukit Nanas 1 mengenai “Importance of Water and River “Pentingnya Air dan Pencemaran Pollution.” Su n g a i . ”

13 November 13 November Visit by The National Association Lawatan ke Loji Pembersihan Air of Gifted Children (NAGC) to Wangsa Maju dan Empangan Klang Wangsa Maju WTP and Klang Gates oleh rombongan dari Gates Dam. Persatuan Kebangsaan Kanak-Kanak Berbakat (NAGC).

17 November 17 November Puncak Niaga Holdings Berhad’s Laporan tahunan 1998 Puncak 1998 Annual Report won the Niaga Holdings Berhad menerima NACRA Industry Excellence Award Anugerah Kecemerlangan Industri for the Construction and NACRA bagi kategori Pembinaan Infrastructure Project Companies dan Syarikat Projek Infrastruktur. category.

23 November 23 November A team of Japan International Pakar-pakar dari Japan Corporation Agency (JAICA) International Corporation Agency Specialists on a technical (JAICA) dalam program kerjasama cooperation programme in the teknikal bidang sanitasi dan alam sanitation and environmental field sekitar melawat Loji Pembersihan visited Wangsa Maju WTP. Air Wangsa Maju.

25 November 25 November Hitachi Group’s Research and Lawatan kumpulan Penyelidikan & 17 Disember Awareness visit to Wangsa Maju Kesedaran Hitachi ke Loji Latihan Persiapan dan Persediaan WTP. Pembersihan Air Wangsa Maju. Y2K di SSP2 dirasmi dan disaksikan oleh YBhg Datuk Mohd Shariff bin 17 December Jajang, Pengerusi Jawatankuasa Y2K Readiness Drill at SSP2, Infrastruktur, Maklumat dan officiated and witnessed by YBhg Teknologi Maklumat Selangor. Datuk Mohd Shariff Bin Jajang, Chairman of the Committee for Selangor’s Infrastructure, Information and Information Technology.

59 corporate achievements

pencapaian korporat

4 January 4 Januari PNHB was included in the KLSE PNHB disenaraikan dalam Indeks Composite Index. Komposit BSKL.

20-21 September 20-21 September SSP2 WTP won the “First Aid” Loji Pembersihan Air SSP2 Competition organised by the memenangi Pertandingan Persatuan Bulan Sabit Merah “Pertolongan Kecemasan” yang Malaysia, Cawangan Selangor. dianjurkan oleh Persatuan Bulan Sabit Merah Malaysia, Cawangan 25 October Selangor Registration of PNSB as an Associate Member of Persatuan 25 Oktober Kontraktor Melayu, Malaysia Pendaftaran PNSB sebagai Ahli Cawangan Wilayah Persekutuan. Bersekutu Persatuan Kontraktor Melayu, Malaysia Cawangan 17 November Wilayah Persekutuan. PNHB received the NACRA Industry Excellence Award under 17 November the Construction and PNHB menerima Anugerah Infrastructure Project Companies Kecemerlangan Industri NACRA category. dalam kategori Pembinaan dan Syarikat Projek Infrastruktur. 1 December PNHB was included in the Morgan 1 Disember Stanley Capital International PNHB disenaraikan dalam Indeks Standard Index. Morgan Stanley Capital International Standard. 3 December Registration of PNSB as a 3 Disember Contractor with the Construction Pendaftaran PNSB sebagai Industry Development Board Kontraktor Lembaga Puncak Niaga’s In-House Magazines Majalah Dalaman Puncak Niaga Malaysia. Pembangunan Industri Pembinaan Malaysia. 27 December Registration of PNSB as contractor 27 Disember with Petronas. Pendaftaran PNSB sebagai kontraktor Petronas.

60 analysis of shar e h o l d i n g s

as at 21 April 2000 analisa pegangan saham pada 21 April 2000

Authorised capital: Modal dibenarkan: RM 300,000,000 Issued and paid-up capital: Modal diterbit dan dibayar: RM 250,000,000 Class of share s : Kelas saham: O rd i n a ry shares of RM1 each Saham biasa RM1 setiap satu

Analysis of shareholdings by range gro u p Analisa pegangan saham mengikut kumpulan Size of Share h o l d i n g s No. of Shareholders No.of Share s Saiz Pegangan Saham Bil. Pemegang Saham % Bil. Saham %

1 – 499 1 7 0 . 1 8 4 4 8 0 . 0 0 500 – 5000 7 , 9 6 1 8 4 . 0 4 1 4 , 7 9 4 , 4 1 0 5 . 9 2 5001 – 10000 7 8 4 8 . 2 8 6 , 6 6 7 , 1 4 2 2 . 6 7 10001 – 100000 5 9 9 6 . 3 2 1 8 , 2 6 3 , 0 0 0 7 . 3 1 100001 – 1000000 9 3 0 . 9 8 2 6 , 2 0 0 , 0 0 0 1 0 . 4 8 1000001 – Above Ke atas 1 9 0 . 2 0 1 8 4 , 0 7 5 , 0 0 0 7 3 . 6 2 Total J u m l a h 9 , 4 7 3 1 0 0 . 0 0 2 5 0 , 0 0 0 , 0 0 0 1 0 0 . 0 0

20 Largest Share h o l d e r s 20 Pemegang Saham Te r b e s a r Name of Shareholders No.of Share s Nama Pemegang Saham B i l . S a h a m %

01 Arab-Malaysian Nominees (Tempatan) Sdn Bhd 68,026,000 27.21 Arab-Malaysian Finance Bhd for Central Plus (M) Sdn Bhd (7/655-6) 02 Employees Provident Fund Board 28,415,000 11.37 03 Arab-Malaysian Finance Berhad 2 0 , 7 1 0 , 0 0 0 8 . 2 8 Pled. Sec A/C for Central Plus (M) Sdn Bhd (S M A RT) 04 Al Wakalah Nominees (Tempatan) Sdn Bhd 17,000,000 6.80 Pled. Sec A/C for Central Plus (M) Sdn Bhd - BIMBHO 05 Central Plus (M) Sdn Bhd 13,634,000 5.45 06 DB (Malaysia) Nominee (Tempatan) Sdn Bhd 8,140,000 3.26 DBSPN for Central Plus (M) Sdn Bhd 07 Kumpulan Darul Ehsan Berhad 4,455,000 1.78 08 Bank Kerjasama Rakyat Malaysia Berhad 4,000,000 1.60 Pled. Sec A/C for Kumpulan Darul Ehsan Berhad 09 Bumiputra-Commerce Trustee Berhad 3,660,000 1.46 10 Al Wakalah Nominees (Tempatan) Sdn Bhd 3,000,000 1.20 Pled. Sec A/C for Corporate Line (M) Sdn Bhd (BIMBHO) 11 Kumpulan Wang Amanah Pencen 2,140,000 0.86 12 Public Nominees (Tempatan) Sdn Bhd 1,873,000 0.75 Pled. Sec A/C for Waterfront Capital Markets Sdn Bhd (JSS) 13 Corporate Line (M) Sdn Bhd 1,737,000 0.69 14 Perbadanan Nasional Berhad 1,605,000 0.64 1 5 Universal Trustee (Malaysia) Berh a d 1 , 4 2 5 , 0 0 0 0 . 5 7 Pled. Sec A/C for BHLB Pacific High Growth Fund 1 6 Amanah Raya Nominees (Tempatan) Sdn Bhd 1 , 3 9 9 , 0 0 0 0 . 5 6 Pled. Sec A/C for Sekim Amanah Saham Nasional 1 7 PRB Nominees (Tempatan) Sdn Bhd 1 , 3 6 9 , 0 0 0 0 . 5 5 Rubber Industry Smallholders Development Authority 1 8 Kumpulan Perangsang Selangor Berh a d 1 , 1 6 5 , 0 0 0 0 . 4 7 1 9 P e rmodalan Negeri Selangor Berh a d 1 , 1 6 5 , 0 0 0 0 . 4 7 2 0 Amanah Raya Nominees (Tempatan) Sdn Bhd 1 , 1 5 9 , 0 0 0 0 . 4 6 Pled. Sec A/C for Amanah Saham Wawasan 2020 Total J u m l a h 1 8 6 , 0 7 7 , 0 0 0 7 4 . 4 3

61 Substantial Shareholders as per Register of Substantial Shareholders Pemegang Saham Utama mengikut Daftar Pemegang Saham Utama Name of Shareholders No.of Shares Nama Pemegang Saham Bil. Saham %

01* DATO’ ROZALI BIN ISMAIL 132,247,000 52.90 02* SHAARI BIN ISMAIL 132,247,000 52.90 03**CENTRAL PLUS (M) SDN BHD (183535 W) 127,510,000 51.00 04 ARAB-MALAYSIAN NOMINEES (TEMPATAN) SDN BHD (51181 W) 68,569,000 27.43 Beneficial Owners Pemilik Benefisiari: a Arab-Malaysian Finance Berhad 68,026,000 for Central Plus (M) Sdn Bhd (183535 W) b Assar Asset Management Sdn Bhd 70,000 for Sarawak Land Development Board c Assar Asset Management Sdn Bhd 16,000 for Sarawak Land Consolidation And Rehabilitation Authority d Assar Asset Management Sdn Bhd 10,000 for Sarawak Plantations Services Sdn Bhd e Assar Asset Management Sdn Bhd 4 0 , 0 0 0 for Bintulu Development Authority f Assar Asset Management Sdn Bhd 1 5 , 0 0 0 for Lembaga Kumpulan Wang Kawasan Konsesi Hutan g Assar Asset Management Sdn Bhd 4 , 0 0 0 for SOCSO Employees Provident Fund h Assar Asset Management Sdn Bhd 4 , 0 0 0 for Lembaga Amanah Kebajikan Darul Falah i Assar Asset Management Sdn Bhd 2 , 0 0 0 for Mayang Tea Sdn Bhd (101807 U) j Assar Asset Management Sdn Bhd 4,000 for Faradale Enterprise Bhd (54382 M) k AMMB International (L) Ltd 3 5 , 0 0 0 for TA Securities Berhad (16029 V) l Arab-Malaysian Trustee Bhd 3 4 3 , 0 0 0 as trustee for Pacific Pearl Fund 0 5 EMPLOYEES PROVIDENT FUND BOARD 2 8 , 5 1 5 , 0 0 0 1 1 . 4 1 0 6 A R A B - M A L AYSIAN FINANCE BERHAD (TEM5493) 2 2 , 6 1 8 , 0 0 0 9 . 0 5 Beneficial Owners Pemilik Benefisiari: a Tham Kah Cheng @ Tum Ka Te n 1 , 0 0 0 b Rajini Bin Ramlan 4 1 0 , 0 0 0 c Beevee (M) Sdn Bhd (347870 K) 8 5 0 , 0 0 0 d Simfoni Warisan Sdn Bhd (378892 K) 5 5 5 , 0 0 0 e Nadzir Bin Sheikh Fazir 2 , 0 0 0 f Ong Teong Seng 7 , 0 0 0 g Tan Chok Uing @ Tan Chok Sing 5 , 0 0 0 h Phang Soon Ping 5 , 0 0 0 i Telapak Holding Sdn Bhd 3 , 0 0 0 j Michiel Leo A/L Leo Philip 1 , 0 0 0 k Louis S/O Savarimuthu 2 , 0 0 0 l Syed Hussin Al Junid 3 0 , 0 0 0 m Peter Ling Ee Kong 1 0 , 0 0 0 n Zahariah Binti Abu Kassim 5 , 0 0 0 o Wong Hon Kong 2 , 0 0 0 p Chuah Chong Lai 1 0 , 0 0 0 q Bong Kee Kien 3 , 0 0 0 r How Wan Lai 5 , 0 0 0 s Lau Tin Lai 1 , 0 0 0 t Kong Soo Fong 1 , 0 0 0 u Central Plus (M) Sdn Bhd (183535 W) 2 0 , 7 1 0 , 0 0 0

62 Substantial Shareholders as per Register of Substantial Shareholders (cont’d) Pemegang Saham Utama mengikut Daftar Pemegang Saham Utama (sambungan) Name of Shareholders No.of Shares Nama Pemegang Saham Bil. Saham %

0 7 KUMPULAN DARUL EHSAN BERHAD (148040 T) 1 2 , 0 0 0 , 0 0 0 4 . 8 0 0 8 DB (M) NOMINEE (TEMPATAN) SDN BHD (66878 U) 8 , 1 4 0 , 0 0 0 3 . 2 6 for Central Plus (M) Sdn Bhd (183535 W) 0 9 CHASE MALAYSIA NOMINEES (ASING) SDN BHD (258327 T) 5 , 0 2 6 , 0 0 0 2 . 0 1 Beneficial Owners Pemilik Benefisiari: a ABN AMRO Asian Tigers Fund US 5 0 , 0 0 0 b Abu Dhabi Investment Authority 2 , 1 7 9 , 0 0 0 c General Accident Life Assurance Limited 918,000 d General Accident Linked Life Assurance Limited 9 3 5 , 0 0 0 e General Accident Staff Pension Trustee Limited 5 7 , 0 0 0 f LGT Bank In Leichtenstein 8 0 , 0 0 0 g Stichting Pensioenfonds ABP 8 0 0 , 0 0 0 h Pension Fund of Snow Brand Food 7 , 0 0 0 The Yasuda Trust & Banking Co. Ltd.

* Deemed interest by virtue of 50% equity interest in Central Plus (M) Sdn Bhd and Corporate Line (M) Sdn Bhd Dianggap mempunyai kepentingan menerusi 50% kepentingan ekuiti di dalam Central Plus (M) Sdn Bhd dan Corporate Line (M) Sdn Bhd * * Held in own name and various nominee names Pegangan atas nama sendiri dan nama pelbagai calon (‘nominee’) l i s t o f p r o p e r t y

senarai har t a n a h

Type of Pro p e rt y L o c a t i o n Land Are a Net Book Va l u e Te n u re Jenis Hart a L o k a s i Keluasan Ta n a h Nilai Buku Bersih H a k m i l i k

Vacant Land P recinct 2.2 111,443 sq. ft RM 8,302,694.00 L e a s e h o l d Pusat Bandar 99 years Shah Alam Section 14 Shah Alam Selangor Daru l E h s a n

Tanah Kosong P recinct 2.2 111,443 kaki RM 8,302,694.00 P a j a k a n Pusat Bandar p e r s e g i selama 99 Shah Alam t a h u n Seksyen 14 Shah Alam Selangor Daru l E h s a n

Footnote: The 99 years leasehold tenure will commence from the date of issuance of the land title. Nota: Pajakan selama 99 tahun ini akan bermula dari tarikh keluaran hakmilik tanah.

63 Water is one of our most precious re s o u rces. It is life itself. And just as we are all living beings, we must all share in its responsible use. No one person, company, organisation, or country can ensure the long-term health of our rivers, lakes and oceans.

The old environmental adage to “think globally, and act locally” could be updated and made more relevant by encouraging us all to “learn, educate, and do.”

We must all learn how to become more responsible in our water usage. This means both gaining a bro a d environmental perspective as well as practical knowledge. And those who know must teach those who need to be taught. We must educate our children because teaching when young is the best way to inculcate both knowledge and values as one matures.

Siapa sebenarnya yang bertanggungjawab? Air adalah salah satu sumber alam yang paling bernilai. Pada hakikatnya air adalah kehidupan. Oleh kerana kita semua adalah makhluk bernyawa, kita sama-sama perlu b e rtanggungjawab dalam penggunaannya. Tidak ada seorang individu mahupun sebuah syarikat, organisasi atau negara yang boleh memastikan jangka panjang kesihatan sungai, tasik dan lautan kita sentiasa terpelihara.

Pepatah tentang alam sekitar yang menyeru kita “berfikir sejagat, bertindak setempat” kini boleh diubah mengikut kesesuaian keadaan dengan menggalak kita semua “belajar, didik dan buat.”

Kita semua perlu mempelajari bagaimana menggunakan air dengan lebih bertanggungjawab. Ini memerlukan pengetahuan amali dan perspektif yang meluas mengenai alam persekitaran. Mereka yang berpengetahuan mesti mengajar golongan yang perlu diajar. Kita perlu mendidik anak-anak kita kerana usia mudalah masa yang terbaik untuk menerapkan ilmu dan nilai, bak kata pepatah, “melentur buluh biar pada rebungnya.” 1 9 9 9 financial r e p o r t

D i rectors’ Report 6 6 Consolidated Profit and Loss Account 7 1 P rofit and Loss Account 7 2 Balance Sheets 7 3 Consolidated Cash Flow Statement 7 4 Notes to the Accounts 7 5 Statement by Dire c t o r s 9 0 S t a t u t o ry Declaration 9 0 R e p o rt of the Auditors 9 1

65 d i r e c t o r s ’ r e p o r t

for the year ended 31 December 1999

The Directors have pleasure in submitting their report together with the audited accounts of the Group and of the Company for the financial year ended 31 December 1999.

Principal activities

The principal activities of the Company during the financial year are that of investment holding and provision of management services. The principal activities of the subsidiary companies are set out in note 16 to the accounts. There has been no significant change in the nature of these activities during the financial year.

Financial re s u l t s

Group Company In RM

Profit for the year after taxation 98,971,517 2,453,320 Unappropriated profit brought forward 176,269,454 8,056,650 Unappropriated profit carried forward 275,240,971 10,509,970

In the opinion of the Directors, the results of the operations of the Group and of the Company during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature.

D i v i d e n d s

No dividend has been paid, declared or proposed since the end of the Company’s previous financial year.

Movements on re s e rves and pro v i s i o n s

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

Employee Loyalty Share Option Scheme

Pursuant to the Puncak Niaga Holdings Berhad’s Employee Loyalty Share Option Scheme (“ELSOS”), which became effective on 8 July 1997, options over 9,094,000 ordinary shares of RM1 each in the Company were allocated to eligible employees in the period to 31 December 1999 to take up the issued shares offered by the holding company, Central Plus (M) Sdn Bhd and another shareholder, Corporate Line (M) Sdn Bhd.

The salient features of the ELSOS are as follows: a. Eligible person are employees who as at 30 April 1997 have been confirmed in writing as a full-time employee of the Group and includes full-time Executive Director. b. The options allocated may be exercised in three (3) tranches within the period of three (3) years up to 8 July 2000. c. The exercise price for the ordinary shares under the ELSOS shall be the retail fixed price of RM3.80 on the date the option is exercised. d. The total number of shares offered under the ELSOS shall comprise 9,094,000 issued and fully paid up ordinary shares of RM1 each of the Company.

During the financial year, options over 2,680,000 ordinary shares of RM1 each were granted in the third tranche in July 1999 at an exercise price of RM3.80 per ordinary share and as at the end of the financial year, none of the options have been exercised by the eligible employees.

66 As at 31 December 1999, options over 5,566,000 ordinary shares of RM1 each being balance of the shares allocated pursuant to the ELSOS has yet to be allocated.

Directors

The Directors in office since the date of the last report are:

Dato’ Rozali bin Ismail Ruslan bin Hassan Raja Azhar bin Raja Ismail Mat Hairi bin Ismail Abdul Majid bin Abdul Karim Dato’ Hari Narayanan a/l Govindasamy (appointed on 01.07.1999) Lee Miang Koi (appointed on 01.09.1999) Samsi bin Pakih (resigned on 01.07.1999)

Directors’ interests

According to the Register of Directors’ Shareholdings, particulars of interests in the shares in the Company, and its related corporations during the financial year of those Directors holding office at the end of the financial year are as follows:

Number of ordinary shares of RM1 each 1 Jan Addition Disposal 31 Dec

Direct interests in the Company:

Shares Ruslan bin Hassan 238,000 – – 238,000 Raja Azhar bin Raja Ismail 233,000 – 230,000 3,000 Mat Hairi bin Ismail 3,000 – – 3,000 Abdul Majid bin Abdul Karim 2,000 – – 2,000 Lee Miang Koi 50,000 – – 50,000 (at date of appointment)

Indirect interests in the Company

Shares Raja Azhar bin Raja Ismail – 225,000 – 225,000* Dato’ Hari Narayanan a/l Govindasamy 120,000 – – 120,000* Lee Miang Koi 10,000 – – 10,000* (*held by nominees)

Number of ordinary shares of RM1 each Granted/ 1 Jan Allocated Exercised 31 Dec

Share options under ELSOS Ruslan bin Hassan 150,000 – – 150,000 Raja Azhar bin Raja Ismail 160,000 – – 160,000 Mat Hairi bin Ismail 160,000 – – 160,000 Lee Miang Koi 29,000 – – 29,000 (at date of appointment) 67 Directors’ interests (cont’d)

Number of ordinary shares of RM1 each 1 Jan Addition Disposal 31 Dec

Direct interests in the subsidiary companies:

Unggul Raya (M) Sdn Bhd

Dato’ Rozali bin Ismail 1 – 1 – Mat Hairi bin Ismail 1 – 1 –

Puncak Research Centre Sdn Bhd

Dato’ Rozali bin Ismail 1 – 1 – Raja Azhar bin Raja Ismail 1 – 1 – Mat Hairi bin Ismail 1 – 1 –

Shares held by Central Plus (M) Sdn Bhd (holding company) in the Company 127,510,000 – – 127,510,000

By virtue of his substantial interests in Central Plus (M) Sdn Bhd, Dato’ Rozali bin Ismail is deemed to be interested in the shares of the Company and all its subsidiary companies.

Number of ordinary shares of RM1 each 1 Jan Addition Disposal 31 Dec

Direct interests in the holding company:

Central Plus (M) Sdn Bhd

Dato’ Rozali bin Ismail 13,496,500 – – 13,496,500

By virtue of his substantial interests in Central Plus (M) Sdn Bhd, Dato’ Rozali bin Ismail is deemed to be interested in the shares of all the other subsidiary companies of Central Plus (M) Sdn Bhd to the extent Central Plus (M) Sdn Bhd has an interest.

68 Directors’ benefits

Since the previous financial year, no Director has received or become entitled to receive a benefit (other than the Directors’ emoluments shown in note 5 to the accounts) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except in the following cases: i. certain Directors receive remuneration as Directors/Executives Directors of related corporations and the benefits arising from the options over shares in the Company allocated to certain Directors under the ELSOS as disclosed in the earlier section of this report; ii. Dato’ Rozali bin Ismail who has financial interests in the related company, Mandai Sari Sdn Bhd which undertakes to operate, maintain and manage the water treatment facilities under the terms of the Operation and Maintenance Agreement dated 8 October 1994 with the Company; iii. Dato’ Rozali bin Ismail who has financial interests in a related corporation, RZ Management Services Sdn Bhd which provides secretarial services to the subsidiary company, Puncak Niaga (M) Sdn Bhd; and iv. Dato’ Rozali bin Ismail and Mat Hairi bin Ismail who have financial interests in a related corporation, Puncak Niaga Overseas Capital Sdn Bhd which provides the project and investment consultancy services for overseas investment to the subsidiary company, Puncak Niaga (M) Sdn Bhd.

Neither during nor at the end of the financial year was the Company a party to any arrangement whose object was to enable the Directors to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

Other statutory information

Before the accounts of the Group and of the Company were made out, the Directors took reasonable steps: a. to ascertain the action taken in relation to the writing off of bad debts and the making of provision for doubtful debts and had satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and b. to ensure that any current assets which were unlikely to realise their book values in the ordinary course of business had been written down to their expected realisable values.

At the date of this report, the Directors are not aware of any circumstances: a. which would render the amounts written off or provided for bad and doubtful debts of the Group and of the Company inadequate to any substantial extent or the values attributed to current assets of the Group and of the Company misleading; and b. which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

69 Other statutory information ( cont’d)

In the interval between the end of the financial year and the date of this report: a. no item, transaction or event of a material and unusual nature has arisen which, in the opinion of the Directors, would substantially affect the results of the operations of the Group and of the Company for the current financial year; and b. no charge has arisen on the assets of any company in the Group which secures the liability of any other person nor has any contingent liability arisen in any company in the Group.

No contingent or other liability of any company in the Group has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may affect the ability of the Company and its subsidiary companies to meet their obligations when they fall due.

At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the accounts which would render any amount stated in the accounts misleading.

Holding company

The holding company of the Company is Central Plus (M) Sdn Bhd, a company incorporated in Malaysia.

Year 2000

After having taken remedial action on all hardware, software and communication system to provide for Year 2000 readiness, the Company had a smooth rollover to the Year 2000 and has not encountered any material adverse affects on its operations todate.

Auditors

The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office.

On behalf of the Board of Directors

Dato’ Rozali bin Ismail Director

Mat Hairi bin Ismail Director

Kuala Lumpur 24 April 2000

70 consolidated profit & loss account

for the year ended 31 December 1999

Group In RM Note 1999 1998

Turnover 4 347,472,486 183,415,236

Profit before taxation 5 98,971,517 57,226,090 Taxation 6 – –

Profit after taxation 98,971,517 57,226,090 Minority interests – 1,886

Profit attributable to shareholders 98,971,517 57,227,976 Unappropriated profit brought forward 176,269,454 119,041,478

Unappropriated profit carried forward 275,240,971 176,269,454

Retained by: The Company 10,509,970 8,056,650 Subsidiary companies 264,731,001 168,212,804 275,240,971 176,269,454

Earnings per ordinary share 7 39.59 sen 22.89 sen

The above profit and loss account is to be read in conjunction with the notes to the accounts on pages 75 to 89.

Auditors’ report - page 91.

71 p r ofit & loss account

for the year ended 31 December 1999

Company In RM Note 1999 1998

Turnover 4 3,960,000 7,800,000

Profit before taxation 5 3,528,520 7,324,353 Taxation 6 (1,075,200) (2,150,400)

Profit after taxation 2,453,320 5,173,953 Unappropriated profit brought forward 8,056,650 2,882,697

Unappropriated profit carried forward 10,509,970 8,056,650

The above profit and loss account is to be read in conjunction with the notes to the accounts on pages 75 to 89.

Auditors’ report - page 91.

72 balance sheets

as at 31 December 1999

Group Company In RM Note 1999 1998 1999 1998

Capital and reserves Share capital 8 250,000,000 250,000,000 250,000,000 250,000,000 Reserves 9 378,138,435 279,166,918 154,315,110 151,861,790 628,138,435 529,166,918 404,315,110 401,861,790

Minority interests – 3 – – Deferred and long term liabilities Deferred taxation 10 – – – – Long term borro w i n g s 11 1,203,576,055 1,230,757,289 – 21,150,800 Hire purchase creditors 12 2,072,275 3,206,404 – – Retention sum 9,766,283 – – – 1,843,553,048 1,763,130,614 404,315,110 423,012,590

Represented by: Fixed assets 13 1,568,016,952 1,340,947,350 8,302,694 8,388,215 Project development costs 14 217,728,826 219,629,481 – – Deferred expenditure 15 13,744,869 13,260,376 – – Subsidiary companies 16 – – 389,008,769 389,234,268 Investments 17 45,050 45,050 – – ELSOS scheme 18 – 21,150,800 – 21,150,800

Current assets Stocks and contract work-in-progress 19 50,296,509 25,709,146 – – Trade debtor 93,121,567 108,375,648 – – Amount owing by holding company 20 1,651,117 1,651,117 – – Amount owing by a related company 21 207,909 15,699,188 – – Other debtors, deposits and prepayments 22 89,402,180 120,061,650 – – Dividend receivable from subsidiary company – – 8,294,400 5,529,600 ELSOS scheme 1 8 21,150,800 – 21,150,800 – Deposits with financial institutions 23 – 182,344,404 – – Cash and bank balances 59,179,942 8,163,316 25,825 32,404 315,010,024 462,004,469 29,471,025 5,562,004

Current liabilities Trade creditors 9,911,248 10,319,529 – – Short term borrowings 24 57,728,358 22,088,779 21,150,800 – Hire purchase creditors 12 1,438,814 1,450,325 – – Amount owing to a related company 21 23,384,361 10,163,003 – – Other creditors and accrued liabilities 25 177,283,891 248,639,275 116,578 122,697 Taxation 1,246,001 1,246,001 1,200,000 1,200,000 270,992,673 293,906,912 22,467,378 1,322,697 Net current assets 44,017,351 168,097,557 7,003,647 4,239,307 1,843,553,048 1,763,130,614 404,315,110 423,012,590

The above balance sheets are to be read in conjunction with the notes to the accounts on pages 75 to 89.

Auditors’ report - page 91. 73 consolidated cash flow statement

for the year ended 31 December 1999

In RM Note 1999 1998

Cash flows generated from/(used in) operating activities Cash receipt from customers 419,366,067 382,157,355 Cash paid to operators (89,684,493) (99,063,793) Cash paid to contractors (118,096,742) (198,675,544) Cash paid to employees and for operating expenses (38,428,564) (33,667,027)

Cash flow generated from operations 173,156,268 50,750,991 Interests paid (50,231,775) (5,154,738) Interests received 6,554,147 22,249,117 (43,677,628) 17,094,379 Net cash generated from operating activities 129,478,640 67,845,370

Cash flows from/(used in) investing activities Acquisition of investment in subsidiary company (3) – Proceeds from disposal of fixed assets 148,389 – Purchase of fixed assets and payment for capital work in progress (244,336,762) (551,043,918) Payments for deferred expenditure (1,226,063) (133,216) Payments for project development costs (13,423,144) (53,756,160) Payment for Wangsa Maju water treatment plant (4,441,484) (118,089,124) Repayment from holding company – 2,879,535 Advances to related company (4,307,188) (6,297,053) Net cash used in investing activities (267,586,255) (726,439,936)

Cash flows from/(used in) financing activities Receipt of long term borrowing – 687,287,398 Receipt of short term borrowing 8,400,000 – Repayment of hire purchase liabilities (1,620,163) (1,230,407) Net cash from financing activities 6,779,837 686,056,991

Net (decrease)/increase in cash and cash equivalents during the financial year (131,327,778) 27,462,425 Cash and cash equivalents at beginning of financial year 190,507,720 163,045,295 Cash and cash equivalents at end of financial year 26 59,179,942 190,507,720

The above consolidated cash flow statement is to be read in conjunction with the notes to the accounts on pages 75 to 89.

Auditors’ report - page 91.

74 notes to the accounts

for the year ended 31 December 1999

1 Aw a rd of concessions and turnkey contract

The subsidiary company, Puncak Niaga (M) Sdn Bhd (“PNSB”) has been awarded the following concessions by the Selangor State Government:

i. to take over, operate, maintain, manage, rehabilitate and refurbish existing water treatment plants located in Selangor Darul Ehsan and Wilayah Persekutuan for a period of 26 years ending 31 December 2020;

i i . to construct, operate, maintain and manage the new water treatment facilities, namely the Sungai Selangor Water Supply Scheme Phase 2, Stages I and II (“SSP2”) for a period of 26 years ending on 31 December 2020; and

i i i . to manage, operate and maintain the water treatment plant at Sungai Semenyih, located in Selangor Darul Ehsan for a period of one year commencing from 5 May 1998 or the completion date of the privatisation of Jabatan Bekalan Air Selangor, whichever is earlier. No formal extension has been granted to PNSB although the plant is still under the management control of PNSB.

On 17 January 1998, PNSB was given a right by the Federal Government to develop a water treatment plant and its related facilities in Wangsa Maju. The construction work commenced in March 1998 and was completed in July 1998. Subsequent to the completion, PNSB has been managing, operating and maintaining the water treatment plant.

On 6 August 1998, PNSB was awarded a contract by Selangor State Government to construct and install pipelines, reservoirs and pumping stations in certain areas within the State under the Sungai Selangor Water Supply Scheme Phase 2 Stage II - Distribution Supply System II for a sum of RM420 million. On 12 August 1999, the contract sum has been revised to RM294 million.

2 Basis of preparation of the accounts

The accounts of the Group and of the Company have been prepared in accordance with the applicable approved Accounting Standards in Malaysia and the provisions of Companies Act, 1965.

3 Significant accounting policies

All significant accounting policies adopted by the Group and the Company are set out below:

Accounting convention The accounts are prepared under the historical cost convention.

Basis of consolidation The Group adopts both the acquisition and merger methods of consolidation.

The consolidated profit and loss account and balance sheet include the accounts of the Company and all its subsidiary companies made up to the end of the financial year. Intercompany transactions and resulting unrealised profit or loss are eliminated fully on consolidation and the consolidated accounts reflect external transactions only.

Acquisition method When the acquisition method is adopted, the difference between the cost of control of subsidiary company and the fair value of the net assets acquired is included in the consolidated accounts as goodwill or reserve on consolidation.

75 Merger method An acquisition of a subsidiary company which meets the criteria for merger accounting under the Malaysian Accounting Standard No. 2, Accounting for Acquisition and Mergers, is accounted for using merger accounting principles. When the merger method is used, the cost of investment in the Company’s books 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 transferred is treated as merger reserve in accordance with the merger relief provisions under Section 60(4) of the Companies Act, 1965. The results of the company being merged are included for the full financial year.

Fixed assets Long term leasehold land is stated at cost and amortised over the period of the lease of 99 years.

The cost of other fixed assets comprises their purchase cost and any incidental costs of acquisition.

Capital work-in-progress represents the development costs incurred for the new water treatment facilities, namely the SSP2 Stage II and is not depreciated.

Depreciation of other fixed assets is calculated so as to write off their cost on a straight line basis over the expected useful lives of the assets concerned. The annual rates are:

% Water treatment plant Over the period of the concession Furniture and fittings 20 Office equipment 20 1 Renovations 33 /3 Motor vehicles 20 1 Computers and software 33 /3 Plant and equipment 10

Assets acquired under hire purchase arrangements Assets acquired under hire purchase arrangements are included in fixed assets and the capital element of the hire purchase commitments is shown as hire purchase creditors. The capital element of the hire purchase rental is applied to reduce the outstanding obligations and the interest element is charged to the profit and loss account so as to give a constant periodic rate of interest on the outstanding liability at the end of each accounting period. Assets acquired under hire purchase arrangements are depreciated over the useful lives of equivalent owned assets.

Project development costs Project development costs, stated at cost, comprise expenditure incurred for the rehabilitation and refurbishment of water treatment facilities and is amortised over the period of the concession.

Deferred expenditure

Deferred expenditure, stated at cost, comprise the following: • Pre-incorporation expenses incurred are shown as preliminary expenses while expenses incurred subsequent to date of incorporation but prior to the commencement of operations are shown as pre- operating expenses. The pre l i m i n a ry and pre-operating expenses will be written off upon commencement of operation.

• Expenses incurred in conjunction with the acquisition of concession is amortised over the period of the concession.

76 Subsidiary companies A subsidiary company is a company in which the Group has a long term equity investment of more than 50% and where the Group controls the composition of its board of directors or more than half of its voting powers.

Investments in subsidiary companies are stated at cost unless in the opinion of the Directors, there has been a permanent diminution in value, in which case a provision is made.

Investments Long term investments are stated at cost unless in the opinion of the Directors, there has been a permanent diminution in value, in which case a provision is made.

Contract work-in-progress Work-in-progress on construction contract is stated at cost plus attributable profits less foreseeable loss and progress billings received and receivable. Profit on construction work is recognised on the percentage of completion method. Cost comprises all direct expenditure and direct overheads based on normal level of activity.

Stocks Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a weighted average basis and includes transportation and handling costs.

Debtors Known bad debts are written off and specific provision is made for any considered to be doubtful of collection.

Capitalisation of borrowing costs Borrowing costs incurred in connection with financing the construction of the capital work-in-progress and contract work-in-progress, are capitalised and included as part of the construction and contract costs respectively until the assets are ready for their intended use.

Currency translations Foreign currency monetary assets and liabilities are translated into Ringgit Malaysia at the rates of exchange approximating the rates at the balance sheet date and profit and loss items, where applicable, are converted at rates ruling on the transaction dates. Exchange differences are included in the profit and loss account in the year in which they arise.

Deferred taxation Provision is made using the liability method for taxation deferred in respect of all timing differences except where it is considered reasonably probable that the tax effects of such deferrals will continue in the foreseeable future. In accounting for timing differences, deferred tax debits are not accounted for unless there is a reasonable expectation of their realisation.

Cash and cash equivalents Cash comprises cash in hand, bank balances and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

77 4 Principal activities and turnover

The principal activities of the Company during the financial year are that of investment holding and provision of management services. The principal activities of the subsidiary companies are set out in note 16 to the accounts.

Turnover of the Group represents invoiced value of bulk quantity of water supplied to the Selangor State Government. Turnover of the Company represents dividend income and management fees.

5 Profit before taxation

Group Company In RM 1999 1998 1999 1998

Profit before taxation is stated after charging: Depreciation of fixed assets 5,013,648 5,062,068 85,521 78,395 Amortisation of deferred expenditure 741,572 602,164 – – Amortisation of project development costs 10,128,506 8,537,212 – – Amortisation of water treatment plants 37,872,857 1,701,814 – – Hire purchase interest 553,891 556,183 – – Interest on term loans 56,971,786 6,555,929 – – Other interests 150,479 58,759 – – Rental of office premises 2,706,873 3,167,781 – – Directors’ remuneration: - fees 626,067 636,000 – – - other emoluments 3,605,803 2,428,816 42,000 22,000 Fees paid/payable to firms of which a Director is a member 1,140,000 1,320,000 – – Auditors’ remuneration - current year 90,000 65,480 15,000 10,000 - underprovision in respect of previous year 15,000 – 5,000 – Provision for diminution in value of quoted shares – 9,740 – – Hire of transport and equipment 42,545 21,700 – –

and crediting: Interest income 6,617,139 22,267,299 – 37,808 Profit on construction contract 11,315,435 11,035,115 – – Gain on disposal of fixed assets 37,303 – – –

The estimated monetary value of benefits-in-kind received and receivable by the Directors otherwise than in cash from the Group amounts to RM156,017 (1998: RM128,800).

78 6 Taxation

Group Company In RM 1999 1998 1999 1998

Malaysian income tax based on the profit for the year – – 1,075,200 2,150,400

There is no taxation charge for the Group because PNSB enjoys investment incentives under the Income Tax Act, 1967.

The effective tax rate of the Company is higher than the applicable statutory tax rate because certain expenses are not allowable for taxation purposes.

7 Earnings per ordinary share

The basic earnings per ordinary share for the year has been calculated based on the consolidated profit after taxation and minority interest of RM98,971,517 (1998: RM57,227,976) on the weighted average number of ordinary shares in issue during the year of 250,000,000 (1998: 250,000,000) shares.

The Company’s Employee Loyalty Share Option Scheme does not affect the basic earnings per ordinary share as the options are over existing issued and fully paid ordinary shares of the Company currently held by the trustees. There will be no new issue of ordinary shares upon the exercise of these options.

8 Share capital

Group Company In RM 1999 1998 1999 1998

Authorised: Ordinary shares of RM1 each At 1 January/31 December 300,000,000 300,000,000 300,000,000 300,000,000

Issued and fully paid up: Ordinary shares of RM1 each At 1 January/31 December 250,000,000 250,000,000 250,000,000 250,000,000

9 R e s e rv e s

Group Company In RM 1999 1998 1999 1998

Non-distributable: Share premium 143,805,140 143,805,140 143,805,140 143,805,140 Reserve on consolidation 92,322 92,322 – – Merger reserve (40,999,998) (40,999,998) – – 102,897,464 102,897,464 143,805,140 143,805,140

Distributable: Unappropriated profit 275,240,971 176,269,454 10,509,970 8,056,650 378,138,435 279,166,918 154,315,110 151,861,790

The Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967 to frank the payment of net dividends out of all its unappropriated profit at 31 December 1999. 79 10 Deferred taxation

Group In RM 1999 1998

Timing differences between depreciation and amortisation, and corresponding taxation allowances 242,044,236 412,596,241 Unabsorbed losses (248,534,879) (246,256,194) Unutilised reinvestment allowances (488,805,962) (201,555,441) (495,296,605) (35,215,394)

11 Long term borrowings

Group Company In RM 1999 1998 1999 1998

Secured Term loan I 300,000,000 300,000,000 – – Revolving underwriting facility 800,000,000 800,000,000 – – Unamortised interest (6,021,966) (6,080,311) – – 793,978,034 793,919,689 – – 1,093,978,034 1,093,919,689 – –

Unsecured Term loan II 21,150,800 21,150,800 21,150,800 21,150,800 Less: Repayment due in next 12 months (Note 24) (21,150,800) – (21,150,800) – – 21,150,800 – 21,150,800

Government Support Loan 121,775,579 121,775,579 – – Less: Repayment due in next 12 months (Note 24) (12,177,558) (6,088,779) – – 109,598,021 115,686,800 – – 1,203,576,055 1,230,757,289 – 21,150,800

i. Both the term loan I and revolving underwriting facility (“RUF”) are secured by fixed charges over all the assets of the wholly owned subsidiary company, Puncak Niaga (M) Sdn Bhd (“PNSB”), the rights of PNSB under the Concession Agreements, construction contracts and project agreements undertaken by PNSB.

Term loan I is repayable in fourteen semi-annual instalments based on pre-determined percentages of outstanding balance, commencing at the earlier of six months after the completion of the new facilities, or the year 2002. The interest rate of term loan I for the year is fixed at 8.5% (1998: 8.5%) per annum.

The RUF facility will expire at the earlier of 2 years after the completion of the new facilities, or the year 2004, and upon its expiration, may be converted at the option of the Company into a 5 years term loan. The interest rates of RUF for the year ranged between 5.25% and 9.00% (1998: 9.00% and 17.10%) per annum and are issued with tenures of one, two, three or six months.

80 1 1 Long term borrowings ( c o n t ’ d )

ii. Pursuant to the Puncak Niaga Holdings Berhad’s Employee Loyalty Share Option Scheme (“ELSOS”), which became effective on 8 July 1997, options over 9,094,000 ordinary shares of RM1 each in the Company were allocated to eligible employees in the period to 31 December 1999 to take up the issued shares offered by the holding company, Central Plus (M) Sdn Bhd and another shareholder, Corporate Line (M) Sdn Bhd. Term loan II was taken by the Company to provide financing to the trustee of the ELSOS to acquire 5,566,000 of the 9,094,000 shares.

The loan is unsecured and repayable from the proceeds arising out of the options exercised by the eligible employees under the ELSOS within the period of 3 years up to 8 July 2000 or by a single bullet repayment not later than July 2000. The interest rates ranged between 8.66% and 10.10% (1998: 12.25% and 14.00%) per annum.

iii. The Government Support Loan is repayable in equal annual instalments over a period of 20 years commencing on 11 April 1999. The interest rate is fixed at 8% per annum on the outstanding balance of the loan amount.

12 Hire purchase creditors

Hire purchase creditors, net of interest in suspense, are payable as follows:

Group In RM 1999 1998

Total payable 3,511,089 4,656,729 Payable within twelve months (1,438,814) (1,450,325)

Payable after twelve months 2,072,275 3,206,404

81 13 Fixed assets

Long term Furniture Computers Plant Water Capital leasehold and Office Motor and and treatment work-in- Group land fittings equipment Renovation vehicles software equipment plants progress Total In RM

1999

Cost At 1 January 8,466,610 3,301,705, 1,737,485 4,692,669 10,714,317 2,935,973 970,848 122,530,608 1,199,461,778 1,354,811,993 Additions – 32,684 281,196 84,742 717,690 204,077 68,166 2,970 268,758,027 270,149,552 Disposals –––– (197,430) – (45,000) –– (242,430) Reclassifications ––––––– 797,592,452 (797,592,452) – At 31 December 8,466,610 3,334,389 2,018,681 4,777,411 11,234,577 3,140,050 994,014 920,126,030 670,627,353 1,624,719,115

Depreciation At 1 January 78,395 1,398,468 772,045 3,750,751 4,371,050 1,715,432 76,688 1,701,814 – 13,864,643 Charge for the year 85,521 662,343 361,723 907,982 2,224,647 634,094 132,205 37,960,348 – 42,968,863 Disposals –––– (127,607) – (3,736) –– (131,343) At 31 December 163,916 2,060,811 1,133,768 4,658,733 6,468,090 2,349,526 205,157 39,662,162 – 56,702,163

Net book value At 31 December 8,302,694 1,273,578 884,913 118,678 4,766,487 790,524 788,857 880,463,868 670,627,353 1,568,016,952

1998

Cost At 1 January – 2,039,033 1,354,978 5,132,777 9,553,632 2,153,283 14,400 – 686,765,178 707,013,281 Additions 8,466,610 417,858 415,750 396,454 1,165,114 782,690 956,448 122,530,608 512,696,600 647,828,132 Reclassifications – 844,814 (33,243) (836,562) (4,429) –––– (29,420) At 31 December 8,466,610 3,301,705 1,737,485 4,692,669 10,714,317 2,935,973 970,848 122,530,608 1,199,461,778 1,354,811,993

Depreciation At 1 January – 951,529 450,431 2,435,440 2,413,421 844,320 5,620 –– 7,100,761 Charge for the year 78,395 520,102 333,760 1,313,243 1,998,288 801,224 71,068 1,701,814 – 6,817,894 Reclassifications – (73,163) (12,146) 2,068 (40,659) 69,888 ––– (54,012) At 31 December 78,395 1,398,468 772,045 3,750,751 4,371,050 1,715,432 76,688 1,701,814 – 13,864,643

Net book value At 31 December 8,388,215 1,903,237 965,440 941,918 6,343,267 1,220,541 894,160 120,828,794 1,199,461,778 1,340,947,350

82 13 Fixed assets (Cont’d)

Company Long term leasehold land In RM

1999

Cost At 1 January/31 December 8,466,610

Depreciation At 1 January 78,395 Charge for the year 85,521 At 31 December 163,916

Net book value At 31 December 8,302,694

1998

Cost Addition/At 31 December 8,466,610

Depreciation Charge for the year/At 31 December 78,395

Net book value At 31 December 8,388,215

Included in capital work-in-progress is interest on term loans capitalised amounting to RM139,343,703 (1998: RM159,940,716). Included in water treatment plant cost is interest on borrowings capitalised amounting to RM105,636,635 (1998: RM1,230,238).

Assets acquired under hire purchase arrangements The value of the fixed assets of the Group includes the following assets acquired under hire purchase arrangements:

In RM 1999 1998

Motor vehicles

Cost 9,723,839 9,685,384 Accumulated depreciation (5,456,078) (3,965,825)

Net book value 4,267,761 5,719,559

83 14 Project development costs

Group In RM 1999 1998

Cost At 1 January 234,577,705 165,888,397 Additions 8,227,851 68,689,308 242,805,556 234,577,705 Amortisation (25,076,730) (14,948,224) At 31 December 217,728,826 219,629,481

15 Deferred expenditure

In RM 1999 1998

Cost At 1 January 14,981,487 14,848,271 Additions 1,226,065 133,216 16,207,552 14,981,487 Amortisation (2,462,683) (1,721,111) At 31 December 13,744,869 13,260,376

Included in deferred expenditure are concession acquisition costs and preliminary and pre-operating expenses of RM15,943,311 and RM264,241 (1998: RM14,964,781 and RM16,706), respectively.

Included under preliminary and pre-operating expenses incurred during the year are auditors’ remuneration and Directors’ remuneration of RM880 (1998: RM760) and RM120,000 (1998: RM40,000), respectively.

16 Subsidiary companies

Company In RM 1999 1998

Unquoted shares, at cost 123,000,100 123,000,097 Subordinated advances 271,368,807 271,368,807 Amount owing by a subsidiary company – 50,000 Amount owing to a subsidiary company (5,360,138) (5,184,636) 389,008,769 389,234,268

84 16 Subsidiary companies (Cont’d)

The subsidiary companies are:

Name of Country of Interest in equity held by Company incorporation Subsidiary Principal activities Company company % %

Direct # Puncak Niaga (M) Sdn Bhd Malaysia 100 – Operation, maintenance, management, construction and undertaking the rehabilitation and refurbishment of water treatment facilities

* Puncak Research Centre Malaysia 100 – Dormant Sdn Bhd

* Puncak Seri (M) Sdn Bhd Malaysia 100 – Dormant

Indirect * Ideal Water Resources Malaysia 100 100 Operation, management, Sdn Bhd maintenance and un d e rt a k i n g the rehabilitation and refurbishment of Sungai Semenyih Water Treatment Plant, Wangsa Maju Water Treatment Plant and SSP 2 Stage I Water Treatment Plant.

* Unggul Raya (M) Sdn Bhd Malaysia 100 100 Operation, management, maintenance and monitoring the operation of dams

# subsidiary company consolidated using the merger accounting method * not audited by PricewaterhouseCoopers

Subordinated advances given to a subsidiary company, Puncak Niaga (M) Sdn Bhd are subordinated and shall be released only upon substitution of these advances into equity of an equal value in that subsidiary company.

The amounts owing by/(to) a subsidiary company is unsecured, interest free, and has no fixed terms of repayment.

85 17 Investments

Group In RM 1999 1998

Quoted shares in Malaysia, at cost 471,139 471,139 Provision for diminution in value (426,089) (426,089) 45,050 45,050

Market value 47,250 45,050

1 8 ELSOS scheme

This represents amount due from the trustee of the ELSOS in respect of advances the Company has given to them to acquire the 5,566,000 option shares from the holding company and another shareholder (see note 11(ii) ).

19 Stocks and contract work-in-progress

Group In RM 1999 1998

Stocks: Water treatment chemicals 822,426 462,854

Contract work-in-progress: Contract cost 349,867,280 280,315,408 Attributable profits less foreseeable loss 29,465,550 18,150,115 379,332,830 298,465,523 Progress billings receivable (329,858,747) (273,219,231) 49,474,083 25,246,292 50,296,509 25,709,146

Included in contract cost is interest on short term borrowings of RM4,663,102 (1998: RM2,816,508).

20 Amount owing by holding company

The holding company is Central Plus (M) Sdn Bhd, a company incorporated in Malaysia which owns 51% of the issued share capital of the Company.

The amount owing by the holding company is unsecured, interest free and has no fixed terms of repayment.

86 21 Significant related party transactions and balances

In the normal course of business, the Company undertakes on an arm’s length basis a variety of transactions with companies deemed related parties by virtue of being members of the Puncak Niaga group of companies. The Puncak Niaga group of companies, with whom the Group and Company transact with, include the following companies:

Other related parties Relationship Mandai Sari Sdn Bhd A subsidiary company of Central Plus (M) Sdn Bhd Central Plus Aviation & Services Sdn Bhd A subsidiary company of Central Plus (M) Sdn Bhd RZ Management Services Sdn Bhd A Director related corporation Puncak Niaga Overseas Capital Sdn Bhd A Director related corporation

The significant related party transactions (other than as previously disclosed in Note 5 to the accounts) and balances between the Group and Company and these entities, are as follows:

Group Company In RM 1999 1998 1999 1998

Significant related party transactions Management fees paid to a related company 500,000 500,000 – – Hiring charges payable to a related company 144,000 1,584,000 – – Management fee charged to a subsidiary company – – 120,000 120,000 Dividend receivable from a subsidiary company – – 2,764,800 5,529,600

Related party balances Related party balances which arose from the above significant related party transactions and remain outstanding at the year end, are as follows:

Group Company In RM 1999 1998 1999 1998

Related party receivables Related company 207,909 15,699,188 – – Other related parties included in other debtors, deposits and prepayments 2,631,583 – – – 2,839,492 15,699,188 – –

Related party payables Related company 23,384,361 10,163,003 – – Other related parties included in other creditors and accrued liabilities 2,970,000 1,469,291 – – 26,354,361 11,632,294 – –

The amounts owing by/(to) the related parties arose in the ordinary course of business and are unsecured, interest free and have no fixed terms of repayment.

22 Other debtors, deposits and prepayments

Included in other debtors, deposits and prepayments of the Group are advances given to project contractors amounting to RM64,023,600 (1998: RM108,835,030). The advances were given for project working capital purposes, for the Sungai Selangor Water Supply Scheme and Distribution Supply System projects pursuant to the respective contracts. 87 23 Deposits with financial institutions

Group Company In RM 1999 1998 1999 1998

Fixed deposits with licensed banks – 176,344,404 – – Short term placement with licensed banks – 6,000,000 – – – 182,344,404 – –

24 Short term borrowings

Group Company In RM 1999 1998 1999 1998

Term loan (Note 11) 21,150,800 – 21,150,800 Government Support Loan (Note 11) 12,177,558 6,088,779 – – Revolving credit 24,400,000 16,000,000 – – 57,728,358 22,088,779 21,150,800 –

The revolving credit facility is unsecured and repayable on demand. The interest rates for the year ranged between 5.19% and 9.15% (1998: 9.15% and 14.25%) per annum.

25 Other creditors and accrued liabilities

Included in other creditors and accrued liabilities of the Group are amount due to contractors and retention sums payable of RM147,330,288 and RM NIL (1998: RM188,815,373 and RM45,266,283) respectively, pursuant to the respective contracts.

26 Cash and cash equivalents

Cash and cash equivalents included in the consolidated cash flow statement comprise the following:

In RM 1999 1998

Deposits with financial institutions – 182,344,404 Cash and bank balances 59,179,942 8,163,316 59,179,942 190,507,720

27 Capital commitments

Group Company In RM 1999 1998 1999 1998

Commitment under the terms of the Privatisation cum Concession Agreement dated 22 September 1994 for the rehabilitation and refurbishment of water treatment facilities 22,366,981 29,411,000 – –

88 27 Capital commitments (Cont’d)

Group Company In RM 1999 1998 1999 1998

Commitment under the terms of the Construction Agreement dated 22 March 1995 for the construction and completion of Sungai Selangor Water Supply Scheme Phase 2 Stage II 70,621,228 279,595,000 – –

28 Contingent liability

Group Company In RM 1999 1998 1999 1998

Unsecured Corporate guarantee given to a bank for facilities granted to a subsidiary company – – 50,298,500 50,298,500

29 Events subsequent to balance sheet date

a. The Company is currently undertaking a Proposed Composite Issue Exercise which was announced on 12 November 1999 comprising:

i. a bonus issue of 125,000,000 new ordinary share of RM1.00 each on the basis of one new ordinary share for every two existing ordinary shares held in the Company; and

ii a rights issue of 62,500,000 new ordinary share of RM1.00 each on the basis of one new ordinary share for every four existing shares held at an issue price of RM1.50 per share.

The Company has obtained a conditional approval from the Securities Commission on 20 April 2000. However, the dates of the above issues have not been determined at current date.

b. The Company has been invited by the Federal Economic Planning Unit in January 2000 to take up a 25% equity stake in Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, the concessionaire for the Sungai Selangor Water Supply Scheme Phase 3 (SSP3) Project.

c. On 20 April 2000, a subsidiary company, Puncak Niaga (M) Sdn Bhd, entered into a Facilities Agreement for banking facilities of up to RM261.5 million to finance, design, construct and commission the DSS 2 Project. The banking facilities comprise a term loan and bank guarantee facilities of RM240 million and RM21.5 million, respectively.

30 Segmental reporting - Group

Segmental analysis is not presented as the Group is primarily involved in the operation, maintenance, construc t i o n , rehabilitation and refurbishment of water treatment facilities and operates principally in Malaysia.

89 statement by dir e c t o r s pursuant to section 169(15) of the companies act,1965

We, Dato’ Rozali bin Ismail and Mat Hairi bin Ismail, being two of the Directors of Puncak Niaga Holdings Berhad, state that, in the opinion of the Directors, the accounts set out on pages 71 to 89 are drawn up so as to exhibit a true and fair view of the state of affairs of the Group and the Company as at 31 December 1999 and of the results of the Group and the Company and the cash flows of the Group for the year ended on that date in accordance with the applicable approved Accounting Standards in Malaysia.

Signed at Kuala Lumpur on 24 April 2000.

On behalf of the Board of Directors

Dato’ Rozali bin Ismail Director

Mat Hairi bin Ismail Director s t a t u t o r y declaration

I, Mat Hairi bin Ismail, being the Director primarily responsible for the financial management of Puncak Niaga Holdings Berhad, do solemnly and sincerely declare that to the best of my knowledge and belief, the accounts set out on pages 71 to 89 are correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.

Mat Hairi bin Ismail Director

Subscribed and solemnly declared at Kuala Lumpur on 24 April 2000.

Before me

Neoh Swee Kee (W037) Commissioner for Oaths

90 re p o rt of the auditors to the member of Puncak Niaga Holdings Ber h a d

We have audited the accounts set out on pages 71 to 89. These accounts are the responsibility of the Company’s Directors. Our responsibility is to express an opinion on these accounts based on our audit.

We conducted our audit in accordance with approved auditing standards in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and significant estimates made by Directors, as well as evaluating the overall accounts presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion:

a. the accounts give a true and fair view of the state of affairs of the Group and the Company as at 31 December 1999 and of the results of the Group and of the Company and the cash flows of the Group for the year ended on that date in accordance with the applicable approved Accounting Standards in Malaysia, and comply with the Companies Act, 1965; and

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

We have considered the accounts and the auditors’ report of the subsidiaries of which we have not acted as auditors, as indicated in note 16 to the accounts.

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

The auditors’ reports on the accounts of the subsidiaries were not subject to any qualification and did not include any comment made under subsection (3) of Section 174 of the Act.

PricewaterhouseCoopers [AF: 1146] Public Accountants

Mohd Daruis Zainuddin [969/3/01(J/PH)] Partner

Kuala Lumpur 24 April 2000

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92 1 9 9 9 laporan kewangan

Laporan Pengarah 94 Akaun Untung Rugi Disatukan 99 Akaun Untung Rugi 100 Lembaran Imbangan 101 Penyata Aliran Tunai Disatukan 102 Nota-nota kepada Akaun 103 Kenyataan Para Pengarah 118 Akuan Berkanun 118 Laporan Juruaudit 119

93 l a p o r a n p e n g a r a h

bagi tahun berakhir 31 Disember 1999

Para Pengarah dengan sukacitanya membentangkan laporan tahunan mereka berserta akaun-akaun Kumpulan dan Syarikat yang telah diaudit bagi tahun kewangan berakhir 31 Disember 1999.

Kegiatan Utama

Kegiatan utama Syarikat sepanjang tahun kewangan merangkumi bidang pemegangan pelaburan dan perkhidmatan pengurusan. Kegiatan utama syarikat-syarikat subsidiari adalah seperti yang dinyatakan dalam Nota16 kepada akaun. Tiada sebarang perubahan ketara dalam kegiatan-kegiatan tersebut sepanjang tahun kewangan.

Keputusan Kewangan

Kumpulan Syarikat Dalam RM

Keuntungan selepas cukai 98,971,517 2,453,320 Keuntungan yang tidak diagihkan dibawa ke hadapan 176,269,454 8,056,650 Keuntungan yang tidak diagihkan dihantar ke hadapan 275,240,971 10,509,970

Pada pendapat para Pengarah, keputusan operasi Kumpulan dan Syarikat sepanjang tahun kewangan tidak terjejas oleh sebarang perkara, urusniaga atau kejadian yang penting atau luar biasa.

D i v i d e n

Tiada dividen telah dibayar, diisytihar atau dicadang sejak akhir tahun kewangan syarikat yang lalu.

P e rgerakan Ke Atas Rizab dan Peru n t u k a n

Tiada sebarang pindahan ketara daripada atau kepada rizab dan peruntukan sepanjang tahun kewangan.

Skim Opsyen Saham Pekerja Setia

Selaras dengan Skim Opsyen Saham Pekerja Setia (ELSOS), yang berkuatkuasa pada 8 Julai 1997, opsyen ke atas 9,094,000 saham biasa Syarikat bernilai RM1 setiap satu telah diperuntukkan kepada pekerja yang layak bagi tempoh sehingga 31 Disember 1999 untuk membeli saham-saham terbitan yang ditawarkan oleh syarikat pegangan, Central Plus (M) Sdn Bhd dan satu lagi pemegang saham, Corporate Line (M) Sdn Bhd.

Ciri-ciri utama ELSOS adalah seperti berikut : a. Mereka yang layak adalah pekerja yang telah disahkan secara bertulis sebagai pekerja sepenuh masa dalam Kumpulan pada 30 April 1997, termasuk Pengarah Eksekutif sepenuh masa. b. Peruntukan opsyen boleh dilaksanakan dalam tiga (3) peringkat dalam tempoh tiga (3) tahun sehingga 8 Julai 2000. c. Harga pelaksanaan bagi saham ELSOS adalah harga runcit tetap sebanyak RM3.80 pada tarikh opsyen dilaksanakan. d. Jumlah saham yang ditawarkan di bawah skim ELSOS merangkumi 9,094,000 saham biasa Syarikat yang diterbitkan dan dibayar sepenuhnya bernilai RM1 setiap satu.

Sepanjang tahun kewangan, opsyen ke atas 2,680,000 saham biasa bernilai RM1 sesaham telah diperuntukkan dalam peringkat ketiga pada Julai 1999 pada harga pelaksanaan RM3.80 sesaham biasa dan sehingga akhir tahun kewangan, kesemua opsyen ini masih belum dilaksanakan oleh pekerja yang layak.

94 Dalam tahun kewangan, opsyen ke atas 5,566,000 saham biasa bernilai RM1 setiap satu yang merupakan jumlah baki saham ELSOS, belum lagi diperuntukkan.

Para Pengarah

Para pengarah yang berkhidmat sejak tarikh laporan lalu adalah :

Dato’ Rozali bin Ismail Ruslan bin Hassan Raja Azhar bin Raja Ismail Mat Hairi bin Ismail Abdul Majid bin Abdul Karim Dato’ Hari Narayanan a/l Govindasamy (dilantik pada 01.07.1999) Lee Miang Koi (dilantik pada 01.09.1999) Samsi bin Pakih (meletak jawatan pada 01.07.1999)

Kepentingan Para Pengarah

Menurut Daftar Pegangan Saham Pengarah, butir-butir mengenai kepentingan dalam saham-saham Syarikat dan badan-badan berkaitan sepanjang tahun kewangan bagi para Pengarah yang memegang jawatan pada akhir tahun kewangan adalah seperti berikut :

Bilangan saham biasa bernilai RM1 setiap satu 1 Jan Tambahan Pelupusan 31 Dec

Kepentingan secara langsung dalam Syarikat:

Saham Ruslan bin Hassan 238,000 – – 238,000 Raja Azhar bin Raja Ismail 233,000 – 230,000 3,000 Mat Hairi bin Ismail 3,000 – – 3,000 Abdul Majid bin Abdul Karim 2,000 – – 2,000 Lee Miang Koi 50,000 – – 50,000 (pada tarikh perlantikan)

Kepentingan secara tidak langsung dalam Syarikat

Saham Raja Azhar bin Raja Ismail – 225,000 – 225,000* Dato’ Hari Narayanan a/l Govindasamy 120,000 – – 120,000* Lee Miang Koi 10,000 – – 10,000* (*pegangan atas nama calon)

Bilangan saham biasa bernilai RM1 setiap satu Diberi/ 1 Jan Peruntukan Dilaksanakan 31 Dec

Opsyen Saham ELSOS Ruslan bin Hassan 150,000 – – 150,000 Raja Azhar bin Raja Ismail 160,000 – – 160,000 Mat Hairi bin Ismail 160,000 – – 160,000 Lee Miang Koi 29,000 – – 29,000 (pada tarikh perlantikan) 95 Kepentingan Para Pengarah (sambungan)

Bilangan saham biasa bernilai RM1 setiap satu 1 Jan Tambahan Pelupusan 31 Dis

Kepentingan secara langsung dalam syarikat subsidiari

Unggul Raya (M) Sdn Bhd

Dato’ Rozali bin Ismail 1 – 1 – Mat Hairi bin Ismail 1 – 1 –

Puncak Research Centre Sdn Bhd

Dato’ Rozali bin Ismail 1 – 1 – Raja Azhar bin Raja Ismail 1 – 1 – Mat Hairi bin Ismail 1 – 1 –

Saham-saham yang dipegang oleh Central Plus (M) Sdn Bhd (syarikat pegangan) dalam Syarikat 127,510,000 – – 127,510,000

Oleh kerana kepentingan yang besar dalam Central Plus (M) Sdn Bhd, Dato’ Rozali bin Ismail juga dianggap mempunyai kepentingan dalam saham Syarikat dan kesemua syarikat subsidiarinya.

Bilangan saham biasa bernilai RM1 setiap satu 1 Jan Tambahan Pelupusan 31 Dis

Kepentingan secara langsung dalam syarikat pegangan:

Central Plus (M) Sdn Bhd

Dato’ Rozali bin Ismail 13,496,500 – – 13,496,500

Oleh kerana kepentingan yang besar dalam Central Plus (M) Sdn Bhd, Dato’ Rozali bin Ismail juga dianggap mempunyai kepentingan dalam kesemua syarikat subsidiari Central Plus (M) Sdn Bhd mengikut tahap kepentingan Central Plus (M) Sdn Bhd.

96 Faedah Para Pengarah

Sejak tahun kewangan lalu, tiada Pengarah menerima atau layak menerima faedah (selain daripada ganjaran Pengarah seperti yang dinyatakan dalam Nota 5 kepada akaun) hasil daripada kontrak yang dibuat oleh Syarikat atau badan berkaitan dengan Pengarah atau dengan firma kepada akaun yang mana Pengarah berkenaan menjadi ahlinya atau syarikat di mana beliau mempunyai kepentingan kewangan yang besar, kecuali dalam hal- hal berikut : i. Pengarah tertentu menerima ganjaran sebagai Pengarah/Pengarah Eksekutif syarikat berkaitan dan faedah yang terbit daripada opsyen saham dalam Syarikat yang diperuntukkan kepada Pengarah tertentu di bawah skim ELSOS seperti yang diumumkan dalam bahagian awal laporan ini; ii. Dato’ Rozali bin Ismail yang mempunyai kepentingan kewangan dalam syarikat berkaitan, Mandai Sari Sdn Bhd, yang bertanggungjawab mengendali, menyenggara dan menguruskan kemudahan pembersihan air mengikut syarat-syarat Perjanjian Operasi dan Pengendalian dengan Syarikat bertarikh 8 Oktober 1994; iii. Dato’ Rozali bin Ismail yang mempunyai kepentingan kewangan dalam syarikat berkaitan, RZ Management Services Sdn Bhd yang menyediakan perkhidmatan kesetiausahaan kepada syarikat subsidiari, Puncak Niaga (M) Sdn Bhd; dan iv. Dato’ Rozali bin Ismail dan Mat Hairi bin Ismail yang mempunyai kepentingan dalam syarikat berkaitan, Puncak Niaga Overseas Capital Sdn Bhd yang menyediakan perkhidmatan perundingan projek dan pelaburan luar negeri kepada syarikat subsidiari, Puncak Niaga (M) Sdn Bhd.

Pada sepanjang atau akhir tahun kewangan, Syarikat tidak pernah terlibat dalam sebarang perjanjian yang bertujuan untuk membolehkan para Pengarah mendapat faedah samada melalui perolehan saham atau debentur Syarikat atau mana-mana badan korporat lain.

Maklumat Berkanun Lain

Sebelum akaun-akaun Kumpulan dan Syarikat disediakan, para Pengarah telah mengambil langkah-langkah sewajarnya untuk : a. memastikan tindakan diambil berhubungan dengan penghapusankira hutang lapuk dan peruntukan hutang ragu dan berpuas hati bahawa kesemua hutang lapuk yang diketahui telah dihapuskira dan peruntukan secukupnya telah disediakan untuk hutang ragu; dan b untuk memastikan sebarang aset semasa yang tidak dapat diperolehi nilai bukunya dalam urusan biasa perniagaan telah dikurangkan kepada nilai yang dijangka boleh diperolehi.

Pada tarikh laporan ini, para Pengarah tidak mengetahui sebarang keadaan : a. yang boleh menyebabkan jumlah hutang lapuk yang dihapuskira atau jumlah peruntukan hutang ragu Kumpulan dan Syarikat tidak mencukupi hingga ke tahap yang ketara atau timbul kekeliruan terhadap nilai aset-aset semasa; dan b. yang telah timbul dan mungkin akan menyebabkan pematuhan kepada kaedah sedia ada bagi penilaian aset atau tanggungan Kumpulan dan Syarikat mengelirukan dan tidak sesuai.

97 Maklumat Berkanun Lain (sambungan)

Dalam tempoh perantaraan akhir tahun kewangan dan tarikh laporan ini dibuat: a. tiada perkara, urusniaga atau kejadian penting dan perkara luar biasa yang mengikut pendapat para Pengarah dapat mempengaruhi keputusan operasi Kumpulan dan Syarikat bagi tahun kewangan semasa ; dan b. tiada cagaran yang timbul ke atas aset mana-mana syarikat dalam Kumpulan yang menjadi sandaran bagi tanggungan orang lain dan juga tiada sebarang tanggungan luar jangka yang timbul dalam mana-mana syarikat di dalam Kumpulan.

Tiada tanggungan luar jangka atau tanggungan lain mana-mana syarikat dalam Kumpulan yang telah dikuatkuasakan atau berkemungkinan dikuatkuasakan dalam tempoh dua belas bulan selepas akhir tahun kewangan yang pada pendapat para Pengarah, akan atau mungkin menjejaskan keupayaan Syarikat dan syarikat-syarikat subsidiarinya untuk memenuhi kewajipan masing-masing apabila sampai tempohnya kelak.

Pada tarikh laporan ini, para Pengarah tidak mengetahui akan adanya sebarang keadaan yang tidak diambilkira dalam laporan ini atau akaun-akaun yang boleh menyebabkan kekeliruan pada mana-mana jumlah yang dinyatakan dalam akaun.

Syarikat Pegangan

Syarikat pegangan ialah Central Plus (M) Sdn Bhd, sebuah syarikat yang diperbadankan di Malaysia.

Tahun 2000

Setelah mengambil kira tindakan membaikpulih ke atas semua perkakasan, perisian dan sistem komunikasi bagi melengkapi persediaan Y2K, Syarikat telah berjaya melangkah ke alaf 2000 tanpa mengalami sebarang gangguan yang menjejaskan operasinya sehingga kini.

Juruaudit

Juruaudit, PricewaterhouseCoopers, telah menyatakan kesediaan mereka untuk dilantik semula.

Bagi pihak Lembaga Pengarah

Dato’ Rozali bin Ismail Pengarah

Mat Hairi bin Ismail Pengarah

Kuala Lumpur 24 April 2000

98 akaun untung rugi disatukan

bagi tahun berakhir 31 Disember 1999

Kumpulan Dalam RM Nota 1999 1998

Perolehan 4 347,472,486 183,415,236

Keuntungan sebelum cukai 5 98,971,517 57,226,090 Cukai 6 – –

Keuntungan selepas cukai 98,971,517 57,226,090 Kepentingan minoriti – 1,886

Keuntungan yang boleh diagihkan kepada para pemegang saham 98,971,517 57,227,976 Keuntungan yang tidak diagihkan dibawa ke hadapan 176,269,454 119,041,478

Keuntungan yang tidak diagihkan dihantar ke hadapan 275,240,971 176,269,454

Dipegang oleh: Syarikat 10,509,970 8,056,650 Syarikat-syarikat subsidiari 264,731,001 168,212,804 275,240,971 176,269,454

Pendapatan sesaham biasa 7 39.59 sen 22.89 sen

Akaun untung rugi di atas perlu dibaca seiring dengan nota-nota kepada akaun pada muka surat 103 hingga 117

Laporan juruaudit - muka surat 119

99 akaun untung rugi

bagi tahun berakhir 31 Disember 1999

Syarikat Dalam RM Nota 1999 1998

Perolehan 4 3,960,000 7,800,000

Keuntungan sebelum cukai 5 3,528,520 7,324,353 Cukai 6 (1,075,200) (2,150,400)

Keuntungan selepas cukai 2,453,320 5,173,953 Keuntungan yang tidak diagihkan dibawa ke hadapan 8,056,650 2,882,697

Keuntungan yang tidak diagihkan dihantar ke hadapan 10,509,970 8,056,650

Akaun untung rugi di atas perlu dibaca seiring dengan nota-nota kepada akaun pada muka surat 103 hingga 117

Laporan juruaudit - muka surat 119

100 lembaran imbangan

bagi tahun berakhir 31 Disember 1999

Kumpulan Syarikat Dalam RM Nota 1999 1998 1999 1998

Rizab dan modal Modal saham 8 250,000,000 250,000,000 250,000,000 250,000,000 Rizab 9 378,138,435 279,166,918 154,315,110 151,861,790 628,138,435 529,166,918 404,315,110 401,861,790

Kepentingan minoriti – 3 – – Tanggungan jangka panjang dan tertunda Cukai tertunda 10 – – – – Pinjaman jangka panjang 11 1,203,576,055 1,230,757,289 – 21,150,800 Pemiutang sewa-beli 12 2,072,275 3,206,404 – – Jumlah tertahan 9,766,283 – – – 1,843,553,048 1,763,130,614 404,315,110 423,012,590

Diwakili oleh : Aset tetap 13 1,568,016,952 1,340,947,350 8,302,694 8,388,215 Kos pembangunan projek 14 217,728,826 219,629,481 – – Perbelanjaan tertunda 15 13,744,869 13,260,376 – – Syarikat-syarikat subsidiari 16 – – 389,008,769 389,234,268 Pelaburan 17 45,050 45,050 – – Skim ELSOS 18 – 21,150,800 – 21,150,800

Aset Semasa Stok dan kontrak kerja dalam pelaksanaan 19 50,296,509 25,709,146 – – Penghutang perdagangan 93,121,567 108,375,648 – – Jumlah terhutang oleh syarikat pegangan 20 1,651,117 1,651,117 – – Jumlah terhutang oleh sebuah syarikat berkaitan 21 207,909 15,699,188 – – Penghutang lain, deposit dan bayaran terdahulu 22 89,402,180 120,061,650 – – Dividen belum terima dari syarikat subsidiari – – 8,294,400 5,529,600 Skim ELSOS 18 21,150,800 – 21,150,800 – Deposit dengan institusi kewangan 23 – 182,344,404 – – Wang tunai di tangan dan di bank 59,179,942 8,163,316 25,825 32,404 315,010,024 462,004,469 29,471,025 5,562,004

Tanggungan semasa Pemiutang perdagangan 9,911,248 10,319,529 – – Pinjaman jangka pendek 24 57,728,358 22,088,779 21,150,800 – Pemiutang sewa-beli 12 1,438,814 1,450,325 – – Jumlah terhutang kepada sebuah syarikat berkaitan 21 23,384,361 10,163,003 – – Pemiutang lain dan tanggungan terakru 25 177,283,891 248,639,275 116,578 122,697 Cukai 1,246,001 1,246,001 1,200,000 1,200,000 270,992,673 293,906,912 22,467,378 1,322,697 Aset bersih semasa 44,017,351 168,097,557 7,003,647 4,239,307 1,843,553,048 1,763,130,614 404,315,110 423,012,590

Akaun untung rugi di atas perlu dibaca seiring dengan nota-nota kepada akaun pada muka surat 103 hingga 117 Laporan juruaudit - muka surat 119 101 penyata aliran tunai disatukan

bagi tahun berakhir 31 Disember 1999

Dalam RM Nota 1999 1998

Aliran tunai dihasilkan dari/(digunakan dalam) aktiviti operasi Tunai diterima daripada pelanggan 419,366,067 382,157,355 Tunai dibayar kepada syarikat pengendali (89,684,493) (99,063,793) Tunai dibayar kepada kontraktor (118,096,742) (198,675,544) Tunai dibayar kepada pekerja dan untuk perbelanjaan operasi (38,428,564) (33,667,027)

Aliran tunai dihasilkan dari operasi 173,156,268 50,750,991 Faedah dibayar (50,231,775) (5,154,738) Faedah diterima 6,554,147 22,249,117 (43,677,628) 17,094,379 Tunai bersih dihasilkan melalui aktiviti operasi 129,478,640 67,845,370

Aliran tunai dari/(digunakan dalam) aktiviti pelaburan Perolehan pelaburan dalam syarikat subsidiari (3) – Hasil dari penjualan aset tetap 148,389 – Pembelian aset tetap dan pembayaran bagi modal kerja dalam pelaksanaan (244,336,762) (551,043,918) Pembayaran bagi perbelanjaan tertunda (1,226,063) (133,216) Pembayaran bagi kos pembangunan projek (13,423,144) (53,756,160) Pembayaran bagi loji pembersihan air Wangsa Maju (4,441,484) (118,089,124) Pembayaran balik kepada syarikat pegangan – 2,879,535 Pendahuluan kepada syarikat berkaitan (4,307,188) (6,297,053) Tunai bersih digunakan dalam aktiviti pelaburan (267,586,255) (726,439,936)

Aliran tunai dari/(digunakan dalam) aktiviti pembiayaan Penerimaan pinjaman jangka panjang – 687,287,398 Penerimaan pinjaman jangka pendek 8,400,000 – Pembayaran balik tanggungan sewa-beli (1,620,163) (1,230,407) Tunai bersih dari aktiviti pembiayaan 6,779,837 686,056,991

(Pengurangan)/Pertambahan bersih tunai dan kesetaraan tunai sepanjang tahun kewangan (131,327,778) 27,462,425 Tunai dan kesetaraan tunai pada permulaan tahun kewangan 190,507,720 163,045,295 Tunai dan kesetaraan tunai pada akhir tahun kewangan 26 59,179,942 190,507,720

Akaun untung rugi di atas perlu dibaca seiring dengan nota-nota kepada akaun pada muka surat 103 hingga 117

Laporan juruaudit - muka surat 119

102 nota-nota kepada akaun

bagi tahun berakhir 31 Disember 1999

1 Pemberian Konsesi dan Kontrak ‘Tu rn k e y ’

Syarikat subsidiari, Puncak Niaga (M) Sdn Bhd (“PNSB”) telah diberi konsesi-konsesi berikut oleh Kerajaan Negeri Selangor:

i. untuk mengambilalih, melaksana, mengurus, membaikpulih dan membaiki loji-loji pembersihan air yang sedia ada di Selangor dan Wilayah Persekutuan bagi tempoh 26 tahun berakhir 31 Disember 2020;

ii. untuk membina, mengendali dan mengurus kemudahan pembersihan air yang baru, khususnya Skim Bekalan Air Sungai Selangor Fasa 2, Peringkat I dan II (“SSP2”) bagi tempoh 26 tahun berakhir 31 Disember 2020; dan

iii. untuk mengurus, mengendali dan menyenggara loji pembersihan air di Sungai Semenyih, Selangor Darul Ehsan bagi tempoh satu tahun bermula 5 Mei 1998 atau sehingga tarikh siap penswastaan Jabatan Bekalan Air Selangor, yang mana lebih awal. Tiada perlanjutan kontrak rasmi telah diberikan kepada PNSB. Walau bagaimanapun, pengurusan dan operasi loji tersebut masih dikendalikan oleh PNSB.

Pada 17 Januari 1998, PNSB diberi hak oleh Kerajaan Persekutuan untuk membangunkan sebuah loji pembersihan air serta kemudahan-kemudahan berkaitan di Wangsa Maju. Kerja-kerja pembinaan bermula pada Mac 1998 dan telah siap sepenuhnya pada Julai 1998. Bermula dari tarikh penyiapan tersebut, PNSB telah pun mengurus, mengendali dan menyenggara loji pembersihan air tersebut.

Pada 6 Ogos 1998, PNSB telah ditawarkan kontrak oleh Kerajaan Negeri Selangor untuk membina dan memasang saluran paip, kolam air dan stesen-stesen pam di beberapa kawasan di bawah Skim Bekalan Air Sungai Selangor Fasa 2, Peringkat II - Sistem Pengagihan Bekalan Air II dengan bayaran berjumlah RM420 juta. Pada 12 Ogos 1999, nilai kontrak tersebut telah dipinda menjadi RM294 juta.

2 Asas Penyediaan Akaun

Akaun-akaun Kumpulan dan Syarikat telah disediakan menurut Piawaian Perakaunan di Malaysia yang diluluskan dan mematuhi peru n t u k a n - p e runtukan Akta Syarikat, 1965.

3 D a s a r-dasar Perakaunan Utama

Kesemua dasar perakaunan penting yang diamalkan oleh Kumpulan dan Syarikat adalah sepert i b e r i k u t :

Kelaziman perakaunan Akaun ini disediakan berasaskan kelaziman kos sejarah.

Asas penyatuan Kumpulan menggunakan kaedah pengambilalihan dan penggabungan sebagai asas penyatuan.

Akaun untung rugi dan lembaran imbangan Syarikat yang disatukan terdiri daripada akaun Syarikat dan kesemua syarikat subsidiarinya yang telah disediakan sehingga akhir tahun kewangan. Uru s n i a g a antara syarikat dan hasil keuntungan atau kerugian yang diperolehi dimansuh sepenuhnya atas penyatuan dan akaun-akaun yang disatukan itu menunjukkan urusniaga luaran sahaja.

Kaedah pengambilalihan Apabila kaedah pengambilalihan digunakan, perbezaan antara kos penguasaan dan nilai saksama aset bersih syarikat subsidiari yang diperolehi telah dimasukkan ke dalam akaun disatukan sebagai muhibah atau rizab atas penyatuan.

103 Kaedah penggabungan Pengambilalihan syarikat subsidiari yang menepati kriteria penggabungan di bawah Piawaian Perakaunan Malaysia No. 2, Perakaunan untuk Pengambilalihan dan Penggabungan, telah diambilkira untuk menggunakan prinsip perakaunan penggabungan. Apabila kaedah penggabungan digunakan, kos pelaburan dalam buku Syarikat dicatatkan pada nilai nominal saham-saham yang diterbitkan dan perbezaan antara nilai pelaburan yang dibawa dan nilai nominal saham-saham yang dipindahkan dianggap sebagai rizab penggabungan selaras dengan peruntukan pelepasan penggabungan di bawah Seksyen 60(4) Akta Syarikat 1965. Hasil keputusan syarikat yang digabungkan telah dimasukkan dalam tahun kewangan sepenuhnya.

Aset Tetap Tanah pajakan jangka panjang dinyatakan pada kos dan dilunaskan sepanjang tempoh pajakan selama 99 tahun.

Kos aset tetap lain merangkumi kos pembelian dan sebarang kos akibat daripada pembelian.

Modal kerja dalam pelaksanaan mewakili kos pembangunan bagi loji-loji pembersihan air yang baru, khususnya SSP2 Peringkat II dan tidak disusutnilaikan.

Susutnilai aset tetap lain telah dikira untuk penghapusan kos berdasarkan kaedah garis lurus sepanjang jangka hayat aset terbabit. Kadar-kadar tahunan adalah:

% Loji pembersihan air Sepanjang tempoh konsesi Perabot dan pepasangan 20 Peralatan pejabat 20 1 Pengubahsuaian 33 /3 Kenderaan bermotor 20 1 Komputer dan perisian 33 /3 Loji dan peralatan 10

Aset diperolehi di bawah perjanjian sewa-beli Aset diperolehi di bawah perjanjian sewa-beli telah dimasukkan dalam aset tetap dan unsur modal tanggungan sewa-beli dinyatakan sebagai pemiutang sewa-beli. Unsur modal bayaran sewa-beli digunakan untuk mengurangkan tanggungjawab belum jelas dan unsur faedah dikenakan terhadap akaun untung rugi supaya menunjukkan kadar faedah tetap berjangka ke atas hutang belum berbayar pada akhir tempoh perakaunan. Aset yang diperolehi di bawah perjanjian sewa-beli disusustnilai sepanjang tempoh hayat berguna aset setara yang dimiliki.

Kos pembangunan projek Kos pembangunan projek yang dinyatakan pada kos meliputi perbelanjaan ke atas kerja pembaikan dan pemulihan kemudahan loji pembersihan air dan dilunaskan sepanjang tempoh konsesi.

Perbelanjaan Tertunda Perbelanjaan tertunda yang dinyatakan pada kos, meliputi perkara-perkara berikut :

• Perbelanjaan sebelum penubuhan ditunjukkan sebagai perbelanjaan awal manakala perbelanjaan selepas tarikh penubuhan tetapi sebelum permulaan operasi ditunjukkan sebagai perbelanjaan sebelum operasi. Perbelanjaan awal dan sebelum operasi akan dihapuskira sebaik sahaja operasi bermula.

• Perbelanjaan berkaitan perolehan konsesi dilunaskan sepanjang tempoh konsesi.

104 Syarikat-syarikat Subsidiari Syarikat subsidiari ialah syarikat yang mana Kumpulan mempunyai pelaburan ekuiti jangka panjang melebihi 50% dan menguasai keanggotaan lembaga pengarah ataupun lebih daripada separuh kuasa undinya.

Pelaburan dalam syarikat subsidiari dinyatakan pada kos kecuali jika pada pendapat para Pengarah terdapat penurunan nilai tetap yang mana peruntukan telah disediakan.

Pelaburan Pelaburan jangka panjang dinyatakan pada kos kecuali jika pada pendapat para Pengarah terdapat penurunan nilai tetap yang mana peruntukan telah disediakan.

Kontrak Kerja dalam pelaksanaan Kontrak kerja dalam pelaksanaan dinyatakan pada kos ditambah keuntungan dan ditolak unjuran kerugian dan bayaran kemajuan yang telah dan akan diterima. Keuntungan ke atas kerja-kerja pembinaan diiktiraf berdasarkan kaedah peratusan siap. Kos merangkumi semua perbelanjaan langsung dan tidak langsung berdasarkan tahap aktiviti biasa.

Stok Stok dinyatakan pada nilai terendah di antara kos dan nilai bersih yang diperolehi. Pada umumnya, kos ditentukan berdasarkan asas purata wajaran dan merangkumi kos pengangkutan dan pentadbiran.

Penghutang Hutang lapuk yang diketahui dihapuskira dan peruntukan khusus disediakan bagi mana-mana hutang ragu.

Permodalan kos pinjaman Kos pinjaman berkaitan dengan pembiayaan pembinaan modal kerja dalam pelaksanaan dan kontrak kerja dalam pelaksanaan dipermodalkan dan dimasukkan sebagai sebahagian daripada kos pembinaan dan kos kontrak masing-masing sehingga aset-aset tersebut sedia untuk digunakan.

Terjemahan matawang Aset dan tanggungan matawang asing diterjemahkan kepada Ringgit Malaysia pada kadar tukaran paling hampir dengan tarikh lembaran imbangan, dan di mana berkaitan, item-item untung rugi akan ditukarkan pada kadar yang berkuatkuasa semasa tarikh urusniaga. Perbezaan pertukaran dimasukkan ke dalam akaun untung rugi pada tahun ianya berlaku.

Cukai tertunda Peruntukan disedia menggunakan kaedah tanggungan bagi cukai tertunda mengikut perbezaan masa kecuali di mana kesan cukai dari tundaan demikian dijangka akan berterusan pada masa terdekat yang dapat diramalkan. Dalam pengiraan perbezaan masa, debit cukai tertunda tidak diambilkira kecuali terdapat jangkaan penghasilan yang berpatutan.

Tunai dan kesetaraan tunai Tunai terdiri daripada tunai dalam tangan, baki di bank dan deposit permintaan. Kesetaraan tunai adalah pelaburan mudah cair jangka pendek yang mudah ditukarkan kepada bentuk tunai dalam amaun yang diketahui, tertakluk kepada perubahan nilai yang risikonya tidak begitu ketara.

105 4 Aktiviti Utama dan Pero l e h a n

Aktiviti utama Syarikat sepanjang tahun adalah pemegangan pelaburan dan perkhidmatan pengurusan. Aktiviti utama syarikat-syarikat subsidiari adalah seperti yang dinyatakan dalam Nota 16 kepada akaun.

Perolehan Kumpulan mewakili nilai invois ke atas kuantiti air pukal yang dibekalkan kepada Kerajaan Negeri Selangor. Perolehan Syarikat mewakili pendapatan dividen dan bayaran perkhidmatan pengurusan.

5 Keuntungan sebelum cukai

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Keuntungan sebelum cukai dinyatakan selepas dikenakan: Susutnilai aset tetap 5,013,648 5,062,068 85,521 78,395 Pelunasan perbelanjaan tertunda 741,572 602,164 – – Pelunasan kos pembangunan projek 10,128,506 8,537,212 – – Pelunasan loji pembersihan air 37,872,857 1,701,814 – – Faedah sewa-beli 553,891 556,183 – – Faedah pinjaman berpenggal 56,971,786 6,555,929 – – Lain-lain faedah 150,479 58,759 – – Sewa premis pejabat 2,706,873 3,167,781 – – Ganjaran para pengarah: - yuran 626,067 636,000 – – - lain-lain emolumen 3,605,803 2,428,816 42,000 22,000 Bayaran kepada firma yang mana Pengarah adalah ahli 1,140,000 1,320,000 – – Ganjaran juruaudit - tahun semasa 90,000 65,480 15,000 10,000 - kekurangan peruntukan tahun lalu 15,000 – 5,000 – Peruntukan pengurangan nilai saham disebutharga – 9,740 – – Sewa pengangkutan dan peralatan 42,545 21,700 – –

dan dikreditkan: Pendapatan faedah 6,617,139 22,267,299 – 37,808 Keuntungan atas kontrak pembinaan 11,315,435 11,035,115 – – Hasil dari penjualan aset tetap 37,303 – – –

Anggaran nilai faedah kebendaan yang diperolehi dan bakal diperolehi para Pengarah selain daripada tunai dari Kumpulan berjumlah RM156,017 (1998: RM128,800).

6 C u k a i

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Cukai pendapatan Malaysia berdasarkan keuntungan bagi tahun – – 1,075,200 2,150,400

Tiada sebarang cukai dikenakan ke atas Kumpulan kerana PNSB menikmati insentif pelaburan di bawah Akta Cukai Pendapatan,1967.

106 6 Cukai (sambungan) Kadar cukai yang dikuatkuasakan ke atas Syarikat adalah lebih tinggi daripada kadar cukai berkanun kerana terdapat perbelanjaan yang tidak dibenarkan bagi tujuan percukaian.

7 Pendapatan Sesaham Biasa

Pendapatan asas sesaham biasa bagi tahun dikira berdasarkan keuntungan disatukan selepas cukai dan kepentingan minoriti berjumlah RM98,971,517 (1998 : RM57,227,976) ke atas purata wajaran bilangan saham biasa yang diterbitkan sepanjang tahun, iaitu sebanyak 250,000,000 (1998: 250,000,000).

Skim Opsyen Saham Pekerja Setia tidak menjejaskan pendapatan sesaham biasa kerana opsyen itu termasuk dalam kelompok saham biasa Syarikat yang diterbitkan dan dibayar sepenuhnya, yang dipegang oleh pemegang amanah. Tiada saham biasa baru akan diterbitkan selepas pelaksanaan opsyen ini.

8 Modal Saham

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Dibenarkan: Saham biasa bernilai RM1 setiap satu Pada 1Januari/31 Disember 300,000,000 300,000,000 300,000,000 300,000,000

Diterbitkan dan dibayar sepenuhnya: Saham biasa bernilai RM1 setiap satu Pada 1Januari/31 Disember 250,000,000 250,000,000 250,000,000 250,000,000

9 R i z a b

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Tidak boleh diagihkan: Premium saham 143,805,140 143,805,140 143,805,140 143,805,140 Rizab ke atas penyatuan 92,322 92,322 – – Rizab penggabungan (40,999,998) (40,999,998) – – 102,897,464 102,897,464 143,805,140 143,805,140

Boleh diagihkan: Keuntungan yang tidak diagihkan 275,240,971 176,269,454 10,509,970 8,056,650 378,138,435 279,166,918 154,315,110 151,861,790

Syarikat mempunyai kredit cukai yang mencukupi di bawah Seksyen 108, Akta Cukai Pendapatan,1967 untuk membuat pembayaran dividen bersih daripada keuntungan yang tidak diagihkan pada 31 Disember 1999.

107 10 Cukai Te rt u n d a

Kumpulan Dalam RM 1999 1998

Perbezaan masa antara susutnilai dan pelunasan,dan elaun-elaun pencukaian berkaitan 242,044,236 412,596,241 Kerugian tidak diserap (248,534,879) (246,256,194) Elaun pelaburan semula yang tidak digunakan (488,805,962) (201,555,441) (495,296,605) (35,215,394)

1 1 Pinjaman Jangka Panjang

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Bercagar Pinjaman berpenggal I 300,000,000 300,000,000 – – Kemudahan penanggung jaminan pusingan 800,000,000 800,000,000 – – Faedah yang tidak dilunaskan (6,021,966) (6,080,311) – – 793,978,034 793,919,689 – – 1,093,978,034 1,093,919,689 – –

Tidak bercagar Pinjaman berpenggal II 21,150,800 21,150,800 21,150,800 21,150,800 Ditolak: Bayaran balik dalam tempoh 12 bulan (Nota 24) (21,150,800) – (21,150,800) – – 21,150,800 – 21,150,800

Pinjaman Sokongan Kerajaan 121,775,579 121,775,579 – – Ditolak: Bayaran balik dalam tempoh 12 bulan (Nota 24) (12,177,558) (6,088,779) – – 109,598,021 115,686,800 – – 1,203,576,055 1,230,757,289 – 21,150,800

i. Kedua-dua pinjaman berpenggal I dan kemudahan penanggung jaminan pusingan (“RUF”) dicagarkan dengan caj-caj tetap ke atas semua aset syarikat subsidiari milik penuh, Puncak Niaga (M) Sdn Bhd (“PNSB”), hak-hak PNSB di bawah Perjanjian Konsesi, kontrak pembinaan dan perjanjian projek yang dilaksanakan oleh PNSB.

Pinjaman berpenggal I hendaklah dibayar semula dalam empat belas ansuran setiap setengah tahun berdasarkan peratusan tunggakan baki yang telah ditentukan, bermula seawal-awalnya enam bulan setelah siap kemudahan baru atau pada tahun 2002. Kadar faedah atas pinjaman berpenggal I bagi tahun semasa ditetapkan pada 8.5% (1998 : 8.5%) setahun.

Kemudahan RUF akan tamat tempohnya seawal-awalnya dua tahun setelah siap kemudahan baru atau pada tahun 2004 dan setelah tamat tempohnya boleh ditukarkan kepada pinjaman berpenggal 5 tahun atas pilihan Syarikat. Kadar faedah RUF bagi tahun semasa adalah antara 5.25% dan 9.00% (1998: 9.00% dan 17.10%) setahun dan diterbitkan dengan tempoh satu, dua, tiga atau enam bulan.

108 1 1 Pinjaman Jangka Panjang (sambungan)

ii. Menurut Skim Opsyen Saham Pekerja Setia (“ELSOS”) Puncak Niaga Holdings Berhad, yang berkuatkuasa mulai 8 Julai 1997, opsyen ke atas 9,094,000 saham biasa bernilai RM1 setiap satu dalam Syarikat diperuntukkan kepada pekerja yang layak pada tempoh sehingga 31 Disember 1999 untuk menerima saham-saham terbitan yang ditawarkan oleh syarikat pegangan, Central Plus (M) Sdn Bhd dan satu lagi pemegang saham, Corporate Line (M) Sdn Bhd. Syarikat mendapat pinjaman berpenggal II untuk menyediakan pembiayaan kepada pemegang amanah ELSOS untuk memperolehi 5,566,000 daripada 9,094,000 unit saham tersebut.

Pinjaman itu tidak bercagar dan perlu dijelaskan daripada hasil pelaksanaan opsyen oleh pekerja yang layak di bawah ELSOS dalam tempoh tiga tahun sehingga 8 Julai 2000 atau melalui satu pembayaran tunggal tidak lewat daripada Julai 2000. Kadar faedah adalah antara 8.66% dan 10.10% (1998 : 12.25% dan14.00%) setahun.

iii. Pinjaman Sokongan Kerajaan perlu dibayar semula melalui ansuran tahunan dalam tempoh masa dua puluh tahun bermula pada 11 April 1999. Kadar faedah ditetapkan pada 8% setahun atas baki jumlah pinjaman.

12 Pemiutang sewa-beli

Pemiutang sewa-beli, bersih daripada faedah tergantung, perlu dibayar seperti berikut:

Kumpulan Dalam RM 1999 1998

Jumlah perlu dibayar 3,511,089 4,656,729 Perlu dibayar dalam tempoh 12 bulan (1,438,814) (1,450,325)

Perlu dibayar dalam tempoh 12 bulan 2,072,275 3,206,404

109 13 Aset Te t a p

Tanah Perabot Komputer Loji Loji Modal pajakan jangka dan Peralatan Pengubah- Kenderaan dan dan pembersihan kerja dalam Kumpulan panjang pepasangan pejabat suaian bermotor perisian peralatan air pelaksanaan Jumlah Dalam RM

1999

Kos Pada 1 Januari 8,466,610 3,301,705, 1,737,485 4,692,669 10,714,317 2,935,973 970,848 122,530,608 1,199,461,778 1,354,811,993 Tambahan – 32,684 281,196 84,742 717,690 204,077 68,166 2,970 268,758,027 270,149,552 Pelupusan –––– (197,430) – (45,000) –– (242,430) Pengkelasan semula ––––––– 797,592,452 (797,592,452) – Pada 31 Disember 8,466,610 3,334,389 2,018,681 4,777,411 11,234,577 3,140,050 994,014 920,126,030 670,627,353 1,624,719,115

Susutnilai Pada 1 Januari 78,395 1,398,468 772,045 3,750,751 4,371,050 1,715,432 76,688 1,701,814 – 13,864,643 Caj tahunan 85,521 662,343 361,723 907,982 2,224,647 634,094 132,205 37,960,348 – 42,968,863 Pelupusan –––– (127,607) – (3,736) –– (131,343) Pada 31 Disember 163,916 2,060,811 1,133,768 4,658,733 6,468,090 2,349,526 205,157 39,662,162 – 56,702,163

Nilai buku bersih Pada 31 Disember 8,302,694 1,273,578 884,913 118,678 4,766,487 790,524 788,857 880,463,868 670,627,353 1,568,016,952

1998

Kos Pada 1 Januari – 2, 0 3 9 , 0 3 3 1, 3 5 4 , 9 7 8 5, 1 3 2 , 7 7 7 9, 5 5 3 , 6 3 2 2, 1 5 3 , 2 8 3 14 , 4 0 0 – 68 6 , 7 6 5 , 1 7 8 70 7 , 0 1 3 , 2 8 1 Tam b a h a n 8, 4 6 6 , 6 1 0 41 7 , 8 5 8 41 5 , 7 5 0 39 6 , 4 5 4 1, 1 6 5 , 1 1 4 78 2 , 6 9 0 95 6 , 4 4 8 12 2 , 5 3 0 , 6 0 8 51 2 , 6 9 6 , 6 0 0 64 7 , 8 2 8 , 1 3 2 Pengkelasan semula – 84 4 , 8 1 4 (3 3 , 2 4 3 ) (8 3 6 , 5 6 2 ) (4 , 4 2 9 ) –––– (2 9 , 4 2 0 ) Pada 31 Disember 8, 4 6 6 , 6 1 0 3, 3 0 1 , 7 0 5 1, 7 3 7 , 4 8 5 4, 6 9 2 , 6 6 9 10 , 7 1 4 , 3 1 7 2, 9 3 5 , 9 7 3 97 0 , 8 4 8 12 2 , 5 3 0 , 6 0 8 1, 1 9 9 , 4 6 1 , 7 7 8 1, 3 5 4 , 8 1 1 , 9 9 3

Su s u t n i l a i Pada 1 Januari – 95 1 , 5 2 9 45 0 , 4 3 1 2, 4 3 5 , 4 4 0 2, 4 1 3 , 4 2 1 84 4 , 3 2 0 5, 6 2 0 –– 7, 1 0 0 , 7 6 1 Caj tahunan 78 , 3 9 5 52 0 , 1 0 2 33 3 , 7 6 0 1, 3 1 3 , 2 4 3 1, 9 9 8 , 2 8 8 80 1 , 2 2 4 71 , 0 6 8 1, 7 0 1 , 8 1 4 – 6, 8 1 7 , 8 9 4 Pengkelasan semula – (7 3 , 1 6 3 ) (1 2 , 1 4 6 ) 2, 0 6 8 (4 0 , 6 5 9 ) 69 , 8 8 8 ––– (5 4 , 0 1 2 ) Pada 31 Disember 78 , 3 9 5 1, 3 9 8 , 4 6 8 77 2 , 0 4 5 3, 7 5 0 , 7 5 1 4, 3 7 1 , 0 5 0 1, 7 1 5 , 4 3 2 76 , 6 8 8 1, 7 0 1 , 8 1 4 – 13 , 8 6 4 , 6 4 3

Nilai buku bersih Pada 31 Disember 8, 3 8 8 , 2 1 5 1, 9 0 3 , 2 3 7 96 5 , 4 4 0 94 1 , 9 1 8 6, 3 4 3 , 2 6 7 1, 2 2 0 , 5 4 1 89 4 , 1 6 0 12 0 , 8 2 8 , 7 9 4 1, 1 9 9 , 4 6 1 , 7 7 8 1, 3 4 0 , 9 4 7 , 3 5 0

110 13 Aset Te t a p (sambungan)

Syarikat Tanah pajakan jangka panjang Dalam RM

1999

Kos Pada 1 Januari/31 Disember 8,466,610

Susutnilai Pada 1 Januari 78,395 Caj tahunan 85,521 Pada 31 Disember 163,916

Nilai buku bersih Pada 31 Disember 8,302,694

1998

Kos Tambahan/Pada 31 Disember 8,466,610

Susutnilai Caj tahunan/Pada 31 Disember 78,395

Nilai buku bersih Pada 31 Disember 8,388,215

Termasuk dalam modal kerja dalam pelaksanaan adalah faedah ke atas pinjaman berjangka dipermodalkan berjumlah RM139,343,703 (1998 : RM159,940,716). Termasuk dalam kos loji pembersihan air adalah faedah ke atas pinjaman berjangka dipermodalkan berjumlah RM105,636,635 (1998 : RM1,230,238).

Aset yang dibeli melalui perjanjian sewa-beli Nilai aset tetap Kumpulan termasuk aset berikut yang dibeli melalui perjanjian sewa-beli:

Dalam RM 1999 1998

Kenderaan bermotor

Kos 9,723,839 9,685,384 Susutnilai terkumpul (5,456,078) (3,965,825)

Nilai buku bersih 4,267,761 5,719,559

111 14 Kos pembangunan pro j e k

Kumpulan Dalam RM 1999 1998

Kos Pada 1 Januari 234,577,705 165,888,397 Tambahan 8,227,851 68,689,308 242,805,556 234,577,705 Pelunasan (25,076,730) (14,948,224) Pada 31 Disember 217,728,826 219,629,481

15 Perbelanjaan tertunda

Dalam RM 1999 1998

Kos Pada 1 Januari 14,981,487 14,848,271 Tambahan 1,226,065 133,216 16,207,552 14,981,487 Pelunasan (2,462,683) (1,721,111) Pada 31 Disember 13,744,869 13,260,376

Termasuk dalam perbelanjaan tertunda adalah kos perolehan konsesi sebanyak RM15,943,311 (1998: RM14,964,781) dan perbelanjaan pra-operasi sebanyak RM264,241 (1998:RM16,706).

Termasuk dalam perbelanjaan awal dan sebelum operasi, adalah ganjaran juruaudit dan ganjaran para Pengarah yang ditanggung sepanjang tahun yang masing-masing berjumlah RM880 (1988:RM760) dan RM120,000 (1988 : RM40,000).

1 6 Syarikat-syarikat Subsidiari

Syarikat Dalam RM 1999 1998

Saham tidak disebut harga pada kos 123,000,100 123,000,097 Pendahuluan subordinat 271,368,807 271,368,807 Jumlah terhutang oleh syarikat subsidiari – 50,000 Jumlah terhutang kepada syarikat subsidiari (5,360,138) (5,184,636) 389,008,769 389,234,268

112 1 6 Syarikat-syarikat Subsidiari (sambungan)

Syarikat-syarikat subsidiari adalah

Nama Negara Kepentingan dalam ekuiti dipegang oleh Syarikat diperbadankan Syarikat Aktiviti utama Syarikat Subsidiari % %

Secara Langsung # Puncak Niaga (M) Sdn Bhd Malaysia 100 – Operasi, pengendalian, pengurusan, pe m u l i h a n dan penyenggaraan Loji Pembersihan Air.

* Puncak Research Centre Malaysia 100 –Tidak aktif Sdn Bhd

* Puncak Seri (M) Sdn Bhd Malaysia 100 –Tidak aktif

Tidak Secara Langsung * Ideal Water Resources Malaysia 100 100 Operasi, pe n g u ru s a n , Sdn Bhd pengendalian, pe m u l i h a n dan penyenggaraan Loji Pembersihan Air Sungai Semenyih, Loji Pembersihan Air Wangsa Maju dan Lo j i Pembersihan Air SSP2 Fasa I.

* Unggul Raya (M) Sdn Bhd Malaysia 100 100 Operasi, pengurusan, penyenggaraan dan pemantauan operasi empangan # syarikat subsidiari disatukan melalui kaedah perakaunan gabungan * tidak diaudit oleh PricewaterhouseCoopers

Pendahuluan subordinat yang diberikan kepada syarikat subsidiari, Puncak Niaga (M) Sdn Bhd dijadikan subordinat dan dibayar hanya apabila pendahuluan itu digantikan dengan ekuiti yang mempunyai nilai setara dalam syarikat subsidiari.

Jumlah yang dipinjamkan oleh/(kepada) syarikat-syarikat subsidiari adalah tidak bercagar, tanpa faedah dan tidak mempunyai syarat-syarat yang tetap bagi tujuan pembayaran balik.

113 17 Pelaburan

Kumpulan Dalam RM 1999 1998

Saham disebut harga di Malaysia, pada kos 471,139 471,139 Peruntukan pengurangan nilai (426,089) (426,089) 45,050 45,050

Nilai pasaran 47,250 45,050

1 8 Skim ELSOS

Ini mewakili jumlah yang akan diterima daripada pemegang amanah ELSOS berhubung dengan bayaran pendahuluan oleh Syarikat kepada mereka untuk memperolehi 5,566,000 saham opsyen daripada syarikat pegangan dan pemegang saham lain (lihat Nota 11 (ii) )

19 Stok dan Kontrak Kerja dalam Pelaksanaan

Kumpulan Dalam RM 1999 1998

Stok: Kimia rawatan air 822,426 462,854

Kontrak kerja dalam pelaksanaan: Kos kontrak 349,867,280 280,315,408 Keuntungan berkaitan ditolak unjuran kerugian 29,465,550 18,150,115 379,332,830 298,465,523 Bayaran kemajuan yang akan diterima (329,858,747) (273,219,231) 49,474,083 25,246,292 50,296,509 25,709,146

Termasuk dalam kos kontrak adalah faedah ke atas pinjaman jangka pendek berjumlah RM4,663,102 (1998 : RM2,816,508)

20 Jumlah Te rhutang oleh Syarikat Pegangan

Syarikat pegangan ialah Central Plus (M) Sdn Bhd, sebuah syarikat yang diperbadankan di Malaysia yang memiliki 51% daripada modal saham terbitan Syarikat.

Jumlah terhutang oleh syarikat pegangan adalah tidak bercagar, tanpa faedah dan tidak mempunyai syarat- syarat yang tetap bagi tujuan pembayaran balik.

21 Baki dan Urusniaga Penting Pihak Berkaitan

Dalam urusan perniagaan biasa, Syarikat melaksanakan pelbagai jenis urusniaga dengan syarikat-syarikat yang dianggap sebagai pihak berkaitan atas dasar keanggotaan mereka dalam kumpulan syarikat Puncak Niaga. Syarikat-syarikat dalam kumpulan syarikat Puncak Niaga yang berurusniaga dengan Kumpulan dan Syarikat adalah seperti berikut :

114 21 Baki dan Urusniaga Penting Pihak Berkaitan (sambung)

Pihak berkaitan lain Hubungan Mandai Sari Sdn Bhd Syarikat subsidiari Central Plus (M) Sdn Bhd Central Plus Aviation & Services Sdn Bhd Syarikat subsidiari Central Plus (M) Sdn Bhd RZ Management Services Sdn Bhd Syarikat berkaitan seorang Pengarah Puncak Niaga Overseas Capital Sdn Bhd Syarikat berkaitan seorang Pengarah

Urusniaga penting pihak berkaitan (selain dari yang diumumkan sebelum ini dalam Nota 5 kepada akaun) dan baki antara Kumpulan dan Syarikat dan badan-badan ini adalah seperti berikut :

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Urusniaga penting pihak berkaitan Bayaran khidmat pengurusan kepada syarikat berkaitan 500,000 500,000 – – Bayaran sewa perlu dibayar kepada syarikat berkaitan 144,000 1,584,000 – – Bayaran khidmat pengurusan dikenakan ke atas syarikat berkaitan – – 120,000 120,000 Dividen bakal diterima daripada syarikat subsidiari – – 2,764,800 5,529,600

Baki pihak berkaitan Baki pihak berkaitan yang timbul dari urusniaga ketara pihak berkaitan di atas dan belum berbayar pada akhir tahun adalah seperti berikut:

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Bayaran akan diterima daripada pihak berkaitan Syarikat berkaitan 207,909 15,699,188 – – Pihak berkaitan lain termasuk dalam lain-lain pemiutang dan tanggungan terakru 2,631,583 – – – 2,839,492 15,699,188 – –

Bayaran terhutang kepada pihak berkaitan Syarikat berkaitan 23,384,361 10,163,003 – – Pihak berkaitan lain termasuk dalam lain-lain pemiutang dan tanggungan terakru 2,970,000 1,469,291 – – 26,354,361 11,632,294 – –

Jumlah yang terhutang oleh/(kepada) pihak berkaitan timbul dalam urusan perniagaan biasa dan tidak bercagar, tanpa faedah dan tiada ketetapan syarat pembayaran balik.

22 Lain-lain Penghutang, Deposit dan Bayaran Te rd a h u l u

Termasuk dalam penghutang, deposit dan bayaran terdahulu Kumpulan adalah bayaran pendahuluan yang diberikan oleh Kumpulan kepada kontraktor-kontraktor projek berjumlah RM64,023,600 (1998: RM108,835,030). Pendahuluan ini diberi untuk tujuan modal kerja bagi projek Skim Bekalan Air Sungai Selangor dan Sistem Agihan Bekalan Air menurut kontrak masing-masing.

115 23 Deposit dengan Institusi Kewangan

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Deposit tetap dengan bank berlesen – 176,344,404 – – Deposit jangka pendek dengan bank berlesen – 6,000,000 – – – 182,344,404 – –

24 Pinjaman Jangka Pendek

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Pinjaman berpenggal (Nota 11) 21,150,800 – 21,150,800 Pinjaman Sokongan Kerajaan (Nota 11) 12,177,558 6,088,779 – – Kredit pusingan 24,400,000 16,000,000 – – 57,728,358 22,088,779 21,150,800 –

Kemudahan kredit pusingan tidak bercagar dan perlu dibayar bila dituntut. Kadar faedah bagi tahun laporan adalah antara 5.19% dan 9.15% (1998: 9.15% dan 14.25%) setahun.

25 Lain-lain Pemiutang dan Tanggungan Te r a k ru

Termasuk dalam lain-lain pemiutang dan tanggungan terakru Kumpulan adalah jumlah terhutang kepada kontraktor dan jumlah tertahan perlu dibayar sebanyak RM147,330,288 dan RM TIADA menurut kontrak masing-masing (1998: RM188,815,373 dan RM45,266,283) .

26 Tunai dan Kesetaraan Tu n a i

Tunai dan kesetaraan tunai termasuk dalam penyata aliran tunai disatukan terdiri daripada :

Dalam RM 1999 1998

Deposit dengan institusi kewangan – 182,344,404 Wang tunai di tangan dan di bank 59,179,942 8,163,316 59,179,942 190,507,720

27 Komitmen Modal

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Komitmen di bawah syarat Perjanjian Penswastaan merangkap Konsesi bertarikh 22 September 1994 bagi pemulihan dan pembaikan kemudahan pembersihan air 22,366,981 29,411,000 – –

116 27 Komitmen Modal (sambung)

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Komitmen di bawah syarat Perjanjian Pembinaan bertarikh 22 Mac 1995 bagi pembinaan dan penyiapan Fasa 2 Peringkat II, Skim Bekalan Air Sungai Selangor 70,621,228 279,595,000 – –

2 8 Tanggungan Luar Jangka

Kumpulan Syarikat Dalam RM 1999 1998 1999 1998

Tidak bercagar Jaminan korporat kepada bank atas kemudahan yang diberikan kepada syarikat subsidiari – – 50,298,500 50,298,500

29 Peristiwa Penting Berikutan Tarikh Lembaran Imbangan

a. Syarikat kini sedang mengusahakan Cadangan Terbitan Saham Komposit yang telah diumumkan pada 12 November 1999 yang terdiri daripada :

i. terbitan bonus sebanyak 125,000,000 saham biasa baru bernilai RM1.00 sesaham berdasarkan satu saham biasa baru bagi setiap dua saham biasa Syarikat sedia ada; dan

ii. terbitan hak sebanyak 62,500,000 saham biasa baru bernilai RM1.00 sesaham berdasarkan satu saham biasa baru bagi setiap empat saham sedia ada pada harga terbitan RM1.50 sesaham.

Pihak syarikat telah menerima kelulusan bersyarat daripada Suruhanjaya Sekuriti pada 20 April 2000. Walau bagaimanapun, tarikh terbitan saham-saham di atas belum lagi ditentukan pada masa ini.

b. Pada Januari 2000 Syarikat telah dipelawa oleh Unit Perancangan Ekonomi Persekutuan untuk memperolehi 25% kepentingan ekuiti dalam Syarikat Pengeluar Air Selangor Sdn Bhd, syarikat konsesi bagi Projek Bekalan Air Sungai Selangor Fasa 3 (SSP3).

c. Pada 20 April 2000, syarikat subsidiari Puncak Niaga (M) Sdn Bhd telah menandatangani Perjanjian Kemudahan Perbankan berjumlah sehingga RM261.5 juta untuk membiayai, mereka, membina dan melaksanakan Projek DSS2. Kemudahan ini terdiri daripada pinjaman berjangka sebanyak RM240 juta dan kemudahan jaminan bank sebanyak RM21.5 juta.

30 Laporan Menurut Segmen - Kumpulan

Analisa menurut segmen tidak dibentangkan kerana Kumpulan terlibat terutamanya dalam aktiviti mengendali, menyenggara, membina, membaiki dan membaikpulih kemudahan pembersihan air dan beroperasi di Malaysia sepenuhnya.

117 kenyataan para pengarah m e n u r ut seksyen 169(15) akta syarikat, 1965

Kami, Dato’ Rozali bin Ismail dan Mat Hairi bin Ismail, dua daripada para Pengarah Puncak Niaga Holdings Berhad, menyatakan bahawa, pada pendapat para Pengarah, akaun-akaun yang dibentangkan pada muka surat 99 hingga 117 telah disediakan untuk memaparkan keadaan yang sebenar dan saksama mengenai kedudukan Kumpulan dan Syarikat pada 31 Disember 1999 dan keputusan Kumpulan dan Syarikat serta aliran tunai Kumpulan bagi tahun berakhir pada tarikh tersebut menurut Piawaian Perakaunan di Malaysia.

Ditandatangani di Kuala Lumpur pada 24 April 2000.

Bagi pihak Lembaga Pengarah

Dato’ Rozali bin Ismail Pengarah

Mat Hairi bin Ismail Pengarah akuan berkanun

Saya, Mat Hairi bin Ismail, selaku Pengarah yang terutamanya bertanggungjawab terhadap pengurusan kewangan Puncak Niaga Holdings Berhad, dengan tulus ikhlas dan sesungguhnya mengaku bahawa pada pengetahuan saya akaun-akaun yang dibentangkan pada muka surat 99 hingga 117 adalah betul, dan saya membuat pengakuan ini dengan penuh kepercayaan akan kebenarannya dan menurut peruntukan Akta Akaun Berkanun,1960.

Mat Hairi bin Ismail Pengarah

Ditandatangani dan diakui di Kuala Lumpur pada 24 April 2000.

Di hadapan saya

Neoh Swee Kee (W037) Pesuruhjaya Sumpah

118 laporan juru a u d i t kepada ahli-ahli Puncak Niaga Holdings Ber h a d

Kami telah mengaudit akaun-akaun yang dibentangkan pada muka surat 99 hingga 117 Akaun-akaun ini adalah tanggungjawab para Pengarah Syarikat. Tanggungjawab kami adalah untuk menyatakan pendapat mengenai akaun-akaun ini berdasarkan pengauditan kami.

Kami telah mengendalikan tugas audit kami menurut piawaian pengauditan yang diluluskan di Malaysia. Piawaian tersebut mengkehendaki supaya kami merancang dan melaksanakan tugas audit untuk mendapatkan keyakinan yang munasabah samada akaun-akaun tersebut adalah bebas daripada kesilapan pernyataan penting. Skop pengauditan meliputi pemeriksaan, atas dasar menguji, bukti yang menyokong jumlah dan pendedahan yang dinyatakan dalam akaun-akaun. Pengauditan juga merangkumi tugas menaksir prinsip-prinsip perakaunan yang digunakan dan anggaran-anggaran penting yang dibuat oleh para Pengarah, serta menilai pembentangan akaun keseluruhannya. Kami yakin bahawa pengauditan kami menyediakan asas yang munasabah bagi pendapat kami.

Pada pendapat kami:

a. akaun-akaun memberi gambaran yang benar dan saksama mengenai kedudukan Kumpulan dan Syarikat pada 31 Disember 1999 dan keputusan Kumpulan dan Syarikat serta aliran tunai Kumpulan bagi tahun berakhir pada tarikh tersebut menurut piawaian pengauditan yang diluluskan di Malaysia, dan menepati kehendak Akta Syarikat 1965; dan

b. rekod perakaunan dan lain-lain rekod serta daftar-daftar Kumpulan dan syarikat-syarikat subsidiari yang mana kami telah bertindak sebagai juruaudit telah disimpan dengan sempurna bertepatan dengan kehendak Akta tersebut.

Kami juga telah meneliti akaun dan laporan juruaudit syarikat-syarikat subsidiari, yang mana kami tidak bertindak sebagai juruaudit, seperti yang dinyatakan dalam Nota 16.

Kami berpuas hati bahawa akaun-akaun syarikat-syarikat subsidiari yang telah disatukan dengan akaun Syarikat mempunyai bentuk dan kandungan yang sesuai dan sempurna bagi tujuan penyediaan akaun yang disatukan dan kami telah mendapat maklumat dan penjelasan memuaskan yang kami perlukan bagi tujuan berkenaan.

Laporan juruaudit terhadap akaun-akaun syarikat subsidiari tidak tertakluk kepada apa-apa kelayakan dan tidak mengandungi sebarang ulasan di bawah Seksyen 174, subseksyen (3) Akta berkenaan.

PricewaterhouseCoopers [AF: 1146] Akauntan Awam

Mohd Daruis Zainuddin [969/3/01(J/PH)] Rakan Kongsi

Kuala Lumpur 24 April 2000

119 Muka surat ini sengaja dibiarkan kosong.

120 notice of annual general meeting

NOTICE IS HEREBY GIVEN that the Third Annual General Meeting of Puncak Niaga Holdings Berhad (416087- U) will be held at the Banquet Hall, Kuala Lumpur Golf & Country Club, 10 Jalan 1/70D, Off Jalan Bukit Kiara, 60000 Kuala Lumpur on Wednesday, 7 June 2000 at 10.00 am for the following purposes:

1. To receive the Audited Accounts of the Company for the year ended 31 December 1999 and the Resolution 1 Reports of the Directors and Auditors thereon.

2. To re-elect the following Directors retiring in accordance with Article 106 of the Company’s Articles of Association: a. YBhg Dato’ Hari Narayanan a/l Govindasamy Resolution 2 b. Ir Lee Miang Koi Resolution 3

3. To re-elect the following Directors retiring in accordance with Article 101 of the Company’s Articles of Association: a. YBhg Dato’ Rozali Bin Ismail Resolution 4 b. Encik Mat Hairi Bin Ismail Resolution 5

4. To re-appoint Messrs PricewaterhouseCoopers as the Auditors of the Company and to authorise the Resolution 6 Directors to fix their remuneration.

5. As Special Business: To consider and, if thought fit, to pass the following as Ordinary Resolution: Resolution 7 “T H A T, subject always to the Companies Act 1965, the Articles of Association of the Company and the ap p r ovals of the relevant governm e n t a l / re g u l a t o r y authorities, the Directors of the Company be and ar e hereby empowered, pursuant to Section 132D of the Companies Act 1965, to issue shares in the Company from time to time and upon such terms and conditions and for such purposes as the Di r ectors of the Company may deem fit provided that the aggregate number of shares issued pursuant to this resolution does not exceed 10% of the issued share capital of the Company for the time being AND THAT the Directors of the Company be and are also empowered to obtain the ap p r oval for the Listing of and Quotation for the additional shares so issued on the Kuala Lumpur Stock Exchange AND FURTHER THAT such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company.”

6 To transact any other ordinary business of which due notice shall have been given.

FU R THER NOTICE IS HEREBY GIVEN that a Depositor shall be eligible to attend this Meeting only in respect of: a. Shares deposited into the Depositor’s Securities Account before 12.30 pm on 30 May 2000 in respect of shares which are exempted from mandatory deposit; b. Shares transferred into the Depositor’s Securities Account before 12.30 pm on 30 May 2000 in respect of ordinary transfers; c. Shares bought on Kuala Lumpur Stock Exchange on a cum entitlement basis according to the Rules of the Kuala Lumpur Stock Exchange. Shareholders are reminded that pursuant to the Securities Industry (Central Depositories) (Amendment) (No.2) Act, 1998 which came into force on 1 November 1998, all shares not deposited with Malaysian Central Depository Sdn Bhd by 12.30 pm on 1 December 1998 and not exempted from mandatory deposit, have been transferred to the Minister of Finance (‘MOF’). Accordingly, the eligibility to attend this Meeting for such undeposited shares will be the MOF.

BY ORDER OF THE BOARD Notes: 1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy need not be a member of the Company. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised or if such appointer is a corporation, it must be either under its seal or under the TAN BEE LIAN hand of an officer or attorney duly authorised. MAICSA 7006285 3. The instrument appointing the proxy must be deposited at the Registered Office of the Company at Suite 1401-1406, 14th Floor, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur not less than Secretary 48 hours before the time set for holding the Meeting or any adjournment thereof. 4. Resolution 7 on Special Business: The Ordinary Resolution proposed under Item 5, if passed, will give the Directors of the Company, Kuala Lumpur from the date of the above Meeting, authority to issue and allot ordinary shares from the unissued capital of the Company for such purposes as the Directors of the Company consider would be in the 23 May 2000 interest of the Company. This authority will, unless revoked or varied at a General Meeting, expire at the next Annual General Meeting of the Company.

121 notis mesyuarat agung tahunan

DENGAN INI DIBERITA H U bahawa Mesyuarat Agung Tahunan yang Ketiga Puncak Niaga Holdings B e rhad (416087-U) akan diadakan di Dewan Banquet, Kuala Lumpur Golf & Country Club, 10 Jalan 1/70D, Off Jalan Bukit Kiara, 60000 Kuala Lumpur pada hari Rabu, 7 Jun 2000 pukul 10.00 pagi untuk m e m p e rtimbangkan perkara-perkara berikut:

1. Menerima Akaun yang telah diaudit bagi tahun berakhir 31 Disember 1999 serta Laporan Pengarah Resolusi 1 dan Juruaudit mengenainya.

2. Melantik semula Pengarah-Pengarah berikut yang bersara mengikut Artikel 106 Tataurusan Syarikat: a. YBhg Dato’ Hari Narayanan a/l Govindasamy Resolusi 2 b. Ir Lee Miang Koi Resolusi 3

3. Melantik semula Pengarah-Pengarah berikut yang bersara mengikut Artikel 101 Tataurusan Syarikat: a. YBhg Dato’ Rozali bin Ismail Resolusi 4 b. Encik Mat Hairi bin Ismail Resolusi 5

4. Melantik semula Tetuan PricewaterhouseCoopers sebagai Juruaudit Syarikat dan membenarkan para Resolusi 6 Pengarah menetapkan ganjaran mereka.

5. Sebagai Urusan Khas: Mempertimbangkan dan jika difikirkan sesuai, meluluskan Resolusi Biasa berikut: Resolusi 7 “BAHAWA, tertakluk kepada Akta Syarikat 1965, Tataurusan Syarikat dan kelulusan pihak berkuasa berkaitan, para Pengarah adalah dengan ini diberi kuasa menurut Seksyen 132D, Akta Syarikat 1965 untuk menerbitkan saham dalam Syarikat, pada sebarang masa, menurut terma-terma dan syarat- syarat dan bagi tujuan yang difikirkan layak oleh para Pengarah menurut budi bicara mutlak mereka dengan syarat bilangan agregat saham yang diterbitkan menurut resolusi ini tidak melebihi 10% daripada modal terbitan saham Syarikat pada masa sekarang DAN BAHAWA para Pengarah dengan ini diberi kuasa untuk mendapatkan kelulusan bagi melaksanakan Penyenaraian dan Sebut Harga saham-saham tambahan yang diterbitkan di Bursa Saham Kuala Lumpur DANkuasa sedemikian akan terus berkuatkuasa sehingga berakhirnya Mesyuarat Agung Tahunan Syarikat yang akan datang.”

6. Melaksanakan sebarang urusan biasa di mana notis sewajarnya telah diberikan.

DENGAN INI JUGA DIBERITAHU bahawa seseorang Pendeposit akan layak hadir di Mesyuarat ini sekiranya: a. Saham-saham didepositkan ke dalam Akaun Sekuriti Pendeposit sebelum pukul 12.30 tengahari pada 30 Mei 2000 untuk saham yang dikecualikan daripada deposit mandatori; b. Saham-saham dipindahkan ke dalam Akaun Sekuriti Pendeposit sebelum pukul 12.30 tengahari pada 30 Mei 2000 untuk pindahmilik biasa; c. Saham-saham yang dibeli daripada Bursa Saham Kuala Lumpur “atas dasar bersama keberhakan” menurut Peraturan Bursa Saham Kuala Lumpur. Para pemegang saham diingatkan bahawa menurut Akta Industri Sekuriti (Depositori Pusat)(Pindaan)(No.2) 1998 yang berkuatkuasa pada 1 November 1998, semua saham yang tidak didepositkan dengan Malaysian Central Depository Sdn Bhd pada pukul 12.30 tengahari, 1 Disember 1998 dan tidak dikecualikan daripada deposit mandatori, telah dipindahkan kepada Menteri Kewangan. Dengan itu, kelayakan menghadiri Mesyuarat ini bagi saham-saham yang tidak didepositkan adalah terletak dengan Menteri Kewangan.

DENGAN PERINTAH LEMBAGA PENGARAH Nota-nota: 1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini adalah berhak melantik seorang proksi untuk hadir dan mengundi bagi pihaknya. Seseorang proksi tidak semestinya seorang ahli Syarikat. 2. Instrumen perlantikan proksi mestilah secara bertulis oleh pelantik atau pegawai yang telah diberi kuasa. Sekiranya pelantik adalah badan korporat, borang ini mestilah dimeterai ataupun ditandatangani oleh pegawai atau peguam TAN BEE LIAN yang telah diberi kuasa. MAICSA 7006285 3 Instrumen perlantikan proksi mestilah diserah ke Pejabat Berdaftar Syarikat di Suite 1401-1406, Tingkat14, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur tidak lewat dari 48 jam sebelum masa yang ditetapkan untuk S e t i a u s a h a mengadakan Mesyuarat atau sebarang penangguhannya. 4 Nota Penerangan Untuk Resolusi 7: Cadangan Resolusi Biasa di bawah perkara 5, sekiranya diluluskan, akan memberi kuasa kepada para Pengarah Kuala Lumpur Syarikat, bermula daripada tarikh Mesyuarat di atas, untuk menerbit dan memperuntukkan saham-saham biasa daripada modal tidak berbayar Syarikat untuk tujuan-tujuan pada pertimbangan para Pengarah adalah untuk 23 Mei 2000 kepentingan Syarikat. Kuasa ini, kecuali dibatalkan atau dipinda di Mesyuarat Agung, akan lupus di Mesyuarat Agung Tahunan Syarikat yang akan datang.

122 p r o x y f o r m

Puncak Niaga Holdings Berhad (4 1 6 0 8 7 - U ) (Incorporated in Malaysia)

I/We of being a Member/Members of the Company hereby appoint of

as my/our proxy, to vote for me/us and on my/our behalf at the Third Annual General Meeting of the Company to be held at the Banquet Hall, Kuala Lumpur Golf & Country Club, 10 Jalan 1/70D, Off Jalan Bukit Kiara, 60000 Kuala Lumpur on Wednesday, 7 June 2000 at 10.00 am and at any adjournment thereof, as indicated below:

No Resolution For Against 1. To receive the Audited Accounts of the Company for the year ended 31 December 1999 and the Reports of the Directors and Auditors thereon. 2. To re-elect YBhg Dato’ Hari Narayanan a/l Govindasamy as Director. 3. To re-elect Ir Lee Miang Koi as Director. 4. To re-elect YBhg Dato’ Rozali Bin Ismail as Director. 5. To re-elect En Mat Hairi Bin Ismail as Director. 6. To re-appoint Messrs PricewaterhouseCoopers as the Auditors of the Company and to authorise the Directors to fix their remuneration. 7. To empower the Directors of the Company to issue shares pursuant to Section 132D of the Companies Act, 1965.

Please indicate with a cross (x) how you wish your votes to be cast in respect of each Resolution. In the absence of specific directions, your proxy will vote or abstain as he thinks fit.

No. of shares held

Signature(s)/Common Seal of Shareholder(s) Signed this day of 2000

Notes: 1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy need not be a member of the Company. 2. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly authorised or if such appointer is a corporation, it must be either under its seal or under the hand of an officer or attorney duly authorised. 3. The instrument appointing the proxy must be deposited at the Registered Office of the Company at Suite 1401-1406, 14th Floor, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur not less than 48 hours before the time set for holding the Meeting or any adjournment thereof.

123 Fold here

Stamp

Puncak Niaga Holdings Berhad (416087-U) Suite 1401 – 1406, 14th Floor Plaza See Hoy Chan Jalan Raja Chulan 50200 Kuala Lumpur

Fold here b o r a n g p r o k s i

Puncak Niaga Holdings Berhad (4 1 6 0 8 7 - U ) (Diperbadankan di Malaysia)

Saya/Kami dari sebagai Ahli/Ahli-ahli Syarikat dengan ini melantik dari

menjadi wakil saya/kami, untuk menghadiri dan mengundi bagi pihak saya/kami di Mesyuarat Agung Tahunan Yang Ketiga yang akan diadakan di Dewan Banquet , Kuala Lumpur Golf & Country Club, 10 Jalan 1/70D, Off Jalan Bukit Kiara, 60000 Kuala Lumpur pada hari Rabu, 7 Jun 2000 pukul 10.00 pagi dan pada sebarang penangguhannya dengan cara yang ditunjukkan di bawah:

Bil Resolusi Menyokong Menentang 1. Menerima Akaun yang telah diaudit bagi tahun berakhir 31 Disember 1999 serta Laporan Pengarah dan Laporan Juruaudit mengenainya. 2. Melantik semula YBhg Dato’ Hari Narayanan a/l Govindasamy sebagai Pe n g a r a h . 3. Melantik semula Ir Lee Miang Koi sebagai Pengarah. 4. Melantik semula YBhg Dato‘ Rozali bin Ismail sebagai Pengarah. 5. Melantik semula En Mat Hairi bin Ismail sebagai Pengarah. 6. Melantik semula Tetuan PricewaterhouseCoopers sebagai Juruaudit Syarikat dan membenarkan para Pengarah menetapkan ganjaran mereka. 7. Memberi kuasa kepada para Pengarah Syarikat untuk menerbitkan saham Syarikat menurut Seksyen 132D, Akta Syarikat, 1965.

Sila tandakan dengan (x) bagaimana anda ingin mengundi berkenaan dengan setiap Resolusi di atas. Sekiranya tiada arahan-arahan tertentu, proksi anda akan mengundi atau berkecuali sebagaimana beliau fikir sesuai. Jumlah saham yang dipegang

Tandatangan Pemegang Saham atau Meterai Bertarikh haribulan 2000

Nota-nota: 1. Seorang ahli yang berhak menghadiri dan mengundi dalam Mesyuarat ini adalah berhak melantik seorang proksi untuk hadir dan mengundi bagi pihaknya. Seseorang proksi tidak semestinya seorang ahli Syarikat. 2. Instrumen perlantikan proksi mestilah secara bertulis oleh pelantik atau pegawai yang telah diberi kuasa. Sekiranya pelantik adalah badan korporat, borang ini mestilah dimeterai ataupun ditandatangani oleh pegawai atau peguam yang telah diberi kuasa. 3 Instrumen perlantikan proksi mestilah diserah ke Pejabat Berdaftar Syarikat di Suite 1401-1406, Tingkat14, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur tidak lewat dari 48 jam sebelum masa yang ditetapkan untuk mengadakan Mesyuarat atau sebarang penangguhannya.

125 Lipat disini

Setem

Puncak Niaga Holdings Berhad (416087-U) Suite 1401 – 1406, Tingkat 14 Plaza See Hoy Chan Jalan Raja Chulan 50200 Kuala Lumpur

Lipat disini