TANJONG public limited company (Incorporated in England 1926 - Registration No. 210874) (Registered as a foreign company in Malaysia - No. 990903-V)

ANNUAL REPORT & FINANCIAL STATEMENTS 31 January 2004 105 104 112 110 38 34 30 28 18 14 13 41 9 8 4 3 2 Contents Form ofProxy Notice ofSeventy-SeventhAnnualGeneralMeeting List ofProperties Analysis ofShareholdings Additional ComplianceInformation Financial Statements Internal ControlStatement Audit CommitteeReport Corporate GovernanceStatement Corporate SocialResponsibility Business Review Chairman’s Statement Group SegmentalInformation Group FinancialHighlights Senior Management Board ofDirectors Corporate Information Company Profile

Contents Company Profile 2 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Company Profile & Financial Statements2004 Federal RepublicofGermany. resort destination(incorporatingavarietyoftropicalsettings)inthe venture inthefilmexhibitionbusinessandiscurrentlydevelopinga distribution ofliquefiedpetroleumgas(“LPG”).TheGrouphasajoint- People’s RepublicofChinaaretheimportation,bottling,saleand Property Investment.Theprincipalactivitiesofitssubsidiariesinthe Generation, theNumbersForecastandRacingTotalisator businessesand the principalactivitiesofitssubsidiariesinMalaysiaarePower 7.5 penceeachhavebeenissuedandfullypaidasat30April2004. 450,000,000 sharesof7.5penceeachwhich398,767,136 Statements) andtheLondonStockExchangeplcon24December1991. referred toasBursaMalaysiathroughouttheAnnualReportandFinancial Kuala LumpurStockExchange(nowBursaMalaysiaSecuritiesBerhad, Pan MalaysianPoolsSdnBhd.Tanjong shareswerere-listedonthe in 1991followingtherestructuringofCompanyandacquisition The nameoftheCompanywaschangedtoTanjong publiclimitedcompany incorporated inEnglandon2January1926asTanjong Tin DredgingLimited. T anjong publiclimitedcompany(“Tanjong” or“Company”)was The principalactivityoftheCompanyisinvestmentholdingwhilst The authorisedcapitaloftheCompanyis£33,750,000,comprising TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 3

Corporate Information

BOARD OF DIRECTORS REGISTRARS IN MALAYSIA Datuk Khoo Eng Choo Signet Share Registration Services Sdn Bhd Chairman / Independent Director Level 26, Menara Multi Purpose Corporate Information Augustus Ralph Marshall Capital Square Executive Director No.8 Jalan Munshi Abdullah 50100 Kuala Lumpur Khoo Teik Chooi Malaysia Non-Executive Director Tel No. 603-2721 2222 Tan Poh Ching Fax No. 603-2721 2530 / 2721 2531 Non-Executive Director E-mail Address: [email protected] Leong Wai Hoong Independent Director STOCK EXCHANGE LISTINGS Bursa Malaysia GROUP COMPANY SECRETARY London Stock Exchange plc Siuagamy Ramasamy FINANCIAL ADVISERS REGISTERED OFFICE IN ENGLAND Commerce International Merchant Bankers The Registry Berhad, Malaysia 34 Beckenham Road, Beckenham Kent BR3 4TU, England STOCKBROKERS Tel No. 020 863 92000 Hoare Govett Limited, United Kingdom Fax No. 020 865 83430 PRINCIPAL BANKERS PRINCIPAL OFFICE IN MALAYSIA Bumiputra-Commerce Bank Berhad, Level 30, Menara Maxis Malaysia Kuala Lumpur City Centre National Westminster Bank plc, 50088 Kuala Lumpur, Malaysia United Kingdom Tel No. 603-2381 3388 Fax No. 603-2381 3399 SOLICITORS Website: www.tanjongplc.com Cheong Kee Fong & Co, Malaysia Slaughter and May, United Kingdom PRINCIPAL REGISTRARS Capita Registrars AUDITORS The Registry PricewaterhouseCoopers LLP, 34 Beckenham Road, Beckenham United Kingdom Kent BR3 4TU, England Tel No. 020 863 92157 Fax No. 020 865 83430 E-mail Address: [email protected] TANJONG PUBLIC LIMITED COMPANY 4 Annual Report & Financial Statements 2004

Board of Directors

1 LEONG WAI HOONG Independent Director

2 KHOO TEIK CHOOI Non-Executive Director

3DATUK KHOO ENG CHOO Chairman / Independent Director

4TAN POH CHING Non-Executive Director

5 AUGUSTUS RALPH MARSHALL Executive Director

1 2 4 5 3 TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 5

Board of Directors (continued)

Malaysian. Age 61. Chartered Accountant, MBA (Honorary) University of DATUK KHOO ENG CHOO Bath, United Kingdom. Chairman / Independent Director

Has been an Independent Director on the Board of Tanjong since Board of Directors 2002. Appointed Chairman with effect from 1 April 2003 and is the Chairman of the Executive Committee of the Board which is responsible for the overall business and strategic direction of the Group. For over a decade prior to 2002, served in key leadership positions in Pricewaterhouse and PricewaterhouseCoopers in Malaysia, Asia and its World Firm. Held several significant appointments that were made by the Malaysian Government. Served in senior capacities in councils of professional and management bodies in Malaysia and Asia; was Chairman of Asian Association of Management Organisations and is currently Chairman of the Malaysian Institute of Management. Independent Director of MNI Holdings Berhad, Kumpulan Guthrie Berhad, Ranhill Berhad (all listed on the Bursa Malaysia), Kontena Nasional Berhad, and is also Chairman of eckhoo Associates. He does not have any conflict of interest with the Company.

Malaysian. Age 52. An Associate of the Institute of Chartered AUGUSTUS RALPH MARSHALL Accountants in England and Wales, and a Member of the Malaysian Executive Director Institute of Certified Public Accountants, has more than 26 years experience in financial and general management. Appointed a Director of Tanjong in August 1991. An Executive Director since February 1992. Responsible for providing direction in investment, financial and corporate structures, strategies and policies and decision making. Deputy Chairman and Group Chief Executive Officer of ASTRO ALL ASIA NETWORKS plc (listed on the Bursa Malaysia) which is a leading integrated cross-media company in Malaysia; Non-Executive Director of Maxis Communications Berhad (listed on the Bursa Malaysia), a leading mobile communications provider in Malaysia and an Executive Director of Usaha Tegas Sdn Bhd, which has significant interests in the aforesaid companies. His other directorships include MEASAT Global Berhad (formerly known as Malaysian Tobacco Company Berhad) (listed on the Bursa Malaysia), operator of the MEASAT satellite network; KLCC (Holdings) Berhad, the developer and manager of the Kuala Lumpur City Centre development and Arnhold Holdings Limited (listed on The Stock Exchange of Hong Kong Limited), which is involved in contracting for the building and construction industry. There is no business arrangement with the Company in which he has a personal interest. Board of Directors 6 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Board ofDirectors & Financial Statements2004 LEONG WAI HOONG KHOO TEIKCHOOI Non-Executive Director Non-Executive Director Independent Director T AN POHCHING (continued) September 1996,uponhisresignationfromUTSB. T as MaxisCommunicationsBerhad).AppointedNon-Executive Directorof management andmarketingpositionsinBinariangSdn Bhd(nowknown Berhad whichwasacquiredbyJTInternationalGroup in 1996. University ofMalaya. Malaysian. Age58.DegreeinBachelorofArts (Hons.) fromthe has apersonalinterest. Foundation, anon-profitorganisation. Bursa Malaysia).AlsoadirectoroftheMalaysianCommunity&Education on theBursaMalaysia)andASTROALLASIANETWORKSplc(listed directorships inUsahaTegas SdnBhd,MaxisCommunicationsBerhad(listed Malaysia from1973to1990beforejoiningtheGroup.Holdsnon-executive the AdvancedManagementProgramatHarvardBusinessSchool. Engineering fromtheUniversityofStrathclyde,Scotlandandhasattended 1 May2003.RemainsasNon-ExecutiveDirectorwitheffect fromthatdate. 1991. Was Chief ExecutiveOfficer fromJuly1992untilhisretirementon Malaysian. Age57.AppointedDirectortotheBoardofTanjong inOctober has apersonalinterest. marketing andgeneralmanagement. Forecast Totalisator business.Hasextensiveexperienceinbusiness,salesand joining theGroup.Was responsiblefortheestablishmentofNumbers management positionsintheShellgroupofcompaniesMalaysiapriorto Borneo MotorsLtd.From1969to1987,heldvariousseniormarketingand as Non-ExecutiveDirector. Retired asExecutiveDirectorandChairmanon1April2003remains Board ofTanjong inOctober1991andwasitsChairmansinceJuly1992. Bedfordshire Technical College,Luton,UK.AppointedDirectortothe Malaysian. Age66.QualifiedinautomotiveengineeringSouth Berhad In thesameyear, wasappointed theManagingDirectorofJTInternational and generalmanagement. and currentlyservesonitsboard asaNon-ExecutiveDirector. anjong inApril1994andhasbeenanIndependent Directorsince Joined UsahaTegas Group(“UTSB”) in1994andheldsenior Between 1977and1994,heheldseniorpositionsin R.J. Reynolds There isnobusinessarrangementwiththeCompanyinwhichhe Held variousmanagementpositionsintheShellgroupofcompanies Graduated in1973withaFirstClass(Hons)DegreeMechanical There isnobusinessarrangementwiththeCompanyinwhichhe Between 1961and1969,servedinvariousmanagementpositionswith He doesnothave anyconflictofinterest withtheCompany. Has extensiveexperiencein businessdevelopment,sales,marketing W (listed ontheBursaMalaysia) as theRegionalVice President(S.E.Asia),JTInternationalin1996. until hisretirementinJanuary 2000 TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 7

Board of Directors (continued)

DETAILS OF MEMBERSHIP IN BOARD COMMITTEES

Committees of the Board Board of Directors

Executive Audit Remuneration Nominating Option Committee Committee Committee Committee Committee 1

Chairman Chairman Member Chairman Member Annual Report 2004 Datuk Khoo (w.e.f (w.e.f Eng Choo 1.5.2003) 1.4.2003)

Member Nil Nil Nil Chairman Augustus (w.e.f (w.e.f Ralph Marshall 1.5.2003) 1.4.2003)

Khoo Teik Chooi Nil Nil Nil Nil Nil

Tan Poh Ching Nil Member Nil Nil Chairman (w.e.f (retired w.e.f 1.4.2003) 1.4.2003)

Leong Wai Hoong Nil Member Chairman Member Nil (w.e.f 1.4.2003)

Ooi Boon Leong Nil Member Chairman Member Member (retired w.e.f (retired w.e.f (retired w.e.f (retired w.e.f 1.4.2003) 1.4.2003) 1.4.2003) 1.4.2003)

1 Board Committee for the implementation and administration of the Tanjong plc Employees‘ Share Option Scheme No. 2 (“ESOS”).

• None of the Directors has had convictions for any offences within the past 10 years. • All Directors attended all nine Board meetings of Tanjong held for the financial year ended 31 January 2004 except for Ooi Boon Leong who attended 3 meetings up to his retirement. • None of the Directors has any business arrangement with the Company in which he has a personal interest. • None of the Directors has any family relationship with any Director and/or major shareholder of the Company. Senior Management 8 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Senior Management & Chairman/Chief Executive Officer Financial Statements2004 P Group ChiefOperatingOfficer Group ChiefFinancialOfficer an MalaysianPools SdnBhd Group CompanySecretary Executive Director P owertek Bhd Public Accountant(Malaysia). a principalofmajoraccountingfirm. accounting, auditandbusinessimprovementareas,havingpreviouslybeen Financial Officer sinceOctober2000.Hehasover25years experiencein SIUAGAMY RAMASAMY NG ENGTONG IR. DR.ONGPENGSU GERARD NATHAN T management firmservingapublic listedgroup. Company SecretarycumHuman Resource&AdministrationManagerwitha corporate, legalandsecretarial field.PriortojoiningtheGroupshewas Administrators, UK,shehasmore than20yearsofextensiveexperienceinthe Company Secretary. AnAssociateoftheInstitute ofCharteredSecretaries& downstream oilmarket. companies inMalaysia,withmorethan25yearsof experience inthe Chemical Engineering.Hewaspreviouslywiththe Shellgroupof Officer ofPMP. Board ofPMPinMarch2002andiscurrentlytheChairman/Chief Executive Malaysian PoolsSdnBhd(“PMP”).Hewasappointedthe Chairmanofthe 1989 andtheMalaysianBarin1990. of Artsdegreein1988andwascalledtotheEnglishBar(Lincoln'sInn) bank inMalaysia. Officer. Hehasmorethan13yearsworkingexperiencewithaninvestment Engineers, MalaysiaandisamemberofTheInstitutionMalaysia. university. He isaRegisteredProfessionalEngineerwiththeBoardof He wasawardedhisPhDmajoringinPowerSystem1982fromthesame Electronics EngineeringfromtheUniversityofStrathclyde,Scotlandin1976. experience inthepowerbusiness. Director ofPowertekBerhadsinceMarch2001.Hehasmorethan25years AN KONGHAN He isaCharteredCertifiedAccountant(UnitedKingdom)and He graduatedfromtheUniversityofWales, UKwithaDegreein He readeconomicsandlawatCambridge,graduatedwithaBachelor Dr OnggraduatedwithafirstclasshonoursdegreeinElectricaland joined theGroupin1994asChiefOperatingOfficer ofPan joined theGroupin2003asChiefOperating joined theGroupin1993andhasbeenChief joined theGroupin1990andhasbeenExecutive joined theGroupin1991andiscurrently TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 9

Group Financial Highlights

Group Financial Results

2,800 2,677 140 2,600 2,456 130 2,400 120 2,200 2,093 2,099 103.9 110 Group Financial Highlights 2,000 1,893 100 98.7 1,800 84.0 90 80 1,600 83.8 1,400 60.2 70

1,200 54.7 60 sen 49.4 RM million 1,000 53.6 842 50 800 42.4 693 660 40 38.2 562 600 495 515 30 373 382 400 281 339 20 200 10 0 2000 2001 2002 2003 2004

TURNOVER EBITDA OPERATING PROFIT BASIC EPS (sen) UNDERLYING EPS (sen)

ROE & ROA (%) Debt/Equity Ratio (times)

25% 1.20 1.18 20.3 1.10 1.07 20% 19.0 1.00 0.98 15.2 15.4 15% 14.3 14.3 0.90 0.87 13.4 0.81 11.1 10.5 10.8 10% 0.80

0.70 5% 0.60

0.50 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Financial Year Financial Year

ROE ROA

Dividends and Earnings Per Share (sen) Earnings Per Share Contribution (sen)

110 110

100 100 8.2

90 90 3.6 30.7 80 104 80 70 70 36.1 60 60 84 25 sen sen 50 50 3.5 30.0 40 40 25.7 54 49 19.8 30 42 30 65.0 44.1 20 28 41 20 22 22 22 28.4 31.4 10 10 26.1 8 8 8 10 0 -0.5 2000 2001 2002 2003 2004 -10 -19.0 Financial Year -20 INTERIM FINAL DIVIDEND BASIC EPS 2000 2001 2002 2003 2004 Financial Year

POWER GENERATION GAMING OTHERS TANJONG PUBLIC LIMITED COMPANY 10 Annual Report & Financial Statements 2004

Group Financial Highlights (continued)

Year ended 31 January 2004 2003 2002 2001 2000 Consolidated Profit & Loss Account (in RM'000) Turnover 2,677,171 2,455,522 2,098,842 2,092,674 1,892,953 Group Financial Highlights EBITDA 1 842,132 692,889 515,193 495,163 373,492 Operating Profit 659,654 561,650 338,570 381,870 280,668 Interest Income 25,903 16,482 13,585 16,259 23,739 Interest Expense (121,263) (59,906) (32,949) (57,329) (51,058) Net Interest Expense (95,360) (43,424) (19,364) (41,070) (27,319) Net Investment Gain/(Charge) 20,131 (791) (7,706) (3,912) 8,697 Profit Before Tax 587,961 521,368 311,588 334,718 261,191 Profit After Tax & Minority Interests 405,481 323,119 161,352 203,139 185,517 Turnover (in RM'000) Power Generation 1,018,966 932,849 588,690 533,463 343,219 Numbers Forecast Totalisator 1,555,654 1,421,526 1,397,501 1,478,116 1,488,231 Racing Totalisator 20,117 20,942 9,600 6,919 12,948 Property Investment 39,218 37,203 30,914 25,323 22,654 Liquefied Petroleum Gas 43,216 43,002 72,137 48,853 25,901 2,677,171 2,455,522 2,098,842 2,092,674 1,892,953 Joint Venture 2 40,431 31,655 25,361 23,403 24,584 Total 2,717,602 2,487,177 2,124,203 2,116,077 1,917,537

EBITDA (in RM'000) Power Generation 635,999 458,360 319,778 317,442 233,389 Numbers Forecast Totalisator 186,740 208,180 199,742 190,371 145,305 Racing Totalisator (3,383) 2,129 (25,587) (28,244) (15,758) Property Investment 33,430 29,859 25,241 21,233 16,917 Liquefied Petroleum Gas (1,945) (1,586) (1,883) (2,592) (4,096) Non Segmental (8,709) (4,053) (2,098) (3,047) (2,265) 842,132 692,889 515,193 495,163 373,492 Joint Venture & Associate 3 3,536 3,933 88 (2,170) (855) Total 845,668 696,822 515,281 492,993 372,637

Operating Profit/(Loss) (in RM'000) Power Generation 465,104 339,314 229,301 229,819 163,640 Numbers Forecast Totalisator 180,512 201,283 191,835 175,247 132,776 Racing Totalisator (7,682) (2,200) (29,505) (32,036) (20,160) Property Investment 32,542 29,004 24,429 20,501 16,202 Liquefied Petroleum Gas (2,113) (1,698) (75,392) (8,614) (9,524) Non Segmental (8,709) (4,053) (2,098) (3,047) (2,266) 659,654 561,650 338,570 381,870 280,668 Joint Venture & Associate 3 3,536 3,933 88 (2,170) (855) Total 663,190 565,583 338,658 379,700 279,813

1 EBITDA: Refers to Earnings before Net Interest, Tax, Depreciation and Amortisation 2 Joint Venture: Refers to the Group's interest in the results of Tanjong Golden Village 3 Joint Venture & Associate: Refers to the Group's interest in the results of Tanjong Golden Village and Pacific Online Systems Corporation TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 11

Group Financial Highlights (continued)

As at 31 January 2004 2003 2002 2001 2000 Consolidated Balance Sheet (in RM'000) Tangible Assets 2,694,302 2,553,804 2,173,588 1,712,328 1,626,946 Intangible Assets 52,906 56,682 60,457 73,562 77,499 Group Financial Highlights Investment Property 470,000 365,000 365,000 365,000 365,000 Joint Venture & Associate 43,854 31,155 30,710 30,461 32,724 Long Term Investments 5,605 6,356 12,691 25,958 18,287 Current Assets 432,163 320,797 223,193 197,207 181,689 Cash/Liquid Resources 1,127,601 721,988 507,005 522,962 476,612 Gross Assets 4,826,431 4,055,782 3,372,644 2,927,478 2,778,757 Creditors 462,911 423,628 251,799 342,798 321,017 Debt 1,808,240 1,340,608 1,146,259 749,253 778,293 Deferred Taxation 275,813 200,108 146,137 111,053 81,052 Net Assets 2,279,467 2,091,438 1,828,449 1,724,374 1,598,395

Represented by Shareholders' Funds 2,166,613 1,825,970 1,575,304 1,492,701 1,350,263 Minority Interests 112,854 265,468 253,145 231,673 248,132 2,279,467 2,091,438 1,828,449 1,724,374 1,598,395

Net Assets (in RM'000) Power Generation 922,323 1,157,368 1,123,196 1,103,739 1,006,122 Numbers Forecast Totalisator (35,745) (11,118) (10,442) (8,774) 6,738 Racing Totalisator 39,612 55,622 44,568 45,598 51,317 Property Investment 306,861 195,239 184,033 161,931 146,581 Liquefied Petroleum Gas 4,603 2,435 6,080 80,200 79,248 Non Segmental 1 997,959 660,737 450,304 311,219 275,665 2,235,613 2,060,283 1,797,739 1,693,913 1,565,671 Joint Venture & Associate 2 43,854 31,155 30,710 30,461 32,724 Total 2,279,467 2,091,438 1,828,449 1,724,374 1,598,395

Key Corporate Ratios Debt to Equity (times) 1.18 1.07 0.98 0.81 0.87 Return on Equity (ROE) 3 20.3% 19.0% 10.5% 14.3% 14.3% Return on Assets (ROA) 3 15.4% 15.2% 10.8% 13.4% 11.1% Net Dividend Yield 4 5.2% 3.1% 3.3% 2.7% 2.7%

1 Non Segmental: Includes current asset investments, interest bearing assets and dividends payable 2 Joint Venture & Associate: Refers to the Group's interest in the net assets of Tanjong Golden Village, Pacific Online Systems Corporation and Central Pacific Assets Limited 3 Based on the average of the opening and closing balances of shareholders' funds (ROE) and total assets (ROA) 4 Net Dividend Yield is computed based on the weighted average share price during the financial year TANJONG PUBLIC LIMITED COMPANY 12 Annual Report & Financial Statements 2004

Group Financial Highlights (continued)

Year ended 31 January 2004 2003 2002 2001 2000 Cash flows (in RM’000) Cash flow from Operating Activities 743,146 661,416 398,967 479,870 318,315 Net Interest/Dividend (73,421) (68,316) (72,922) (52,831) (26,206) Group Financial Highlights Taxation (95,340) (106,376) (94,375) (113,906) (89,831) Net Capital Expenditure (16,870) (14,479) (9,062) (6,216) (32,997) Free Cashflow 557,515 472,245 222,608 306,917 169,281

Equity Dividends 141,080 99,832 90,659 90,424 81,186 Acquisitions 562,278 400,808 562,166 167,944 340,527 Analysis of Net Cash 1 (in RM'000) Cash 15,848 13,798 14,451 34,427 36,533 Short Term Deposits 1,019,448 620,899 465,925 450,618 389,985 Current Asset Investments 92,305 87,291 26,629 37,917 50,094 1,127,601 721,988 507,005 522,962 476,612 Debt (1,808,240) (1,340,608) (1,146,259) (749,253) (778,293) Net Debt (680,639) (618,620) (639,254) (226,291) (301,681)

Share Information & Stock Performance Number of Shares (in '000) Weighted Average 390,313 385,698 380,354 378,751 375,871 In Issue 396,024 387,209 381,381 379,527 375,983 Share Price (in RM) High 11.70 11.50 9.10 11.80 10.80 Low 8.40 8.15 4.76 6.05 5.40 As at 31 January 11.00 8.75 9.05 7.85 9.60 Market Capitalisation as at 31 January (in RM Million) 4,356 3,388 3,451 2,979 3,609 Per Share Analysis (in sen) Earnings per share (EPS) Basic EPS 103.9 83.8 42.4 53.6 49.4 Diluted EPS 103.7 83.4 42.4 53.3 49.0 Underlying EPS 2 98.7 84.0 60.2 54.7 38.2 Free Cash Flow Per Share 142.8 122.4 58.5 81.0 45.0 Net Tangible Assets Per Share 533.7 456.9 397.2 373.9 338.5 Gross Dividend Per Share 66.0 3 38.0 3 30.0 3 30.0 3 30.0 Net dividend per share 52.0 30.2 23.8 23.8 21.6

1 As at 31 January of the respective financial years 2 Underlying EPS: Basic EPS adjusted for the effects of investment, exchange differences and non-recurring events i.e. tax waiver in 1999 and impairment provision in LPG business in FY2002 3 Includes 16 sen tax-exempt interim dividend in FY2004 (FY2003: 10 sen tax-exempt, FY2002 & FY2001 : 8 sen tax-exempt) TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 13

Group Segmental Information

Year ended 31 January 2004 2003 2002 2001 2000 Power Generation (in RM'000) Turnover 1,018,966 932,849 588,690 533,463 343,219 1 EBITDA 635,999 458,360 319,778 317,442 233,389 1 1

Operating Profit 465,104 339,314 229,301 229,819 163,640 Group Segmental Information Installed Generation Capacity (MW) 1,490 1,230 770 770 770 1 Export Energy (MWh) 6,875,372 5,139,647 3,710,617 3,415,536 1,097,011 1 Average Availability (%) - Telok Gong 98.35 99.14 97.90 99.77 99.40 - Tanjong Kling 93.55 93.30 97.23 93.66 93.90 1 - Panglima 2 93.50 87.89 - - - Load Factor (%) - Telok Gong 2.76 28.25 30.00 14.88 5.10 - Tanjong Kling 81.47 97.09 92.94 94.79 85.90 1 - Panglima 2 76.57 55.62 - - - Numbers Forecast Totalisator Business (in RM'000) Turnover 1,555,654 1,421,526 1,397,501 1,478,116 1,488,231 Prize Payout 987,076 884,282 853,652 881,906 939,091 Taxes & Duties 3 210,324 168,392 208,204 254,236 255,976 EBITDA 186,740 208,180 199,742 190,371 145,305 Operating Profit 180,512 201,283 191,835 175,247 132,776 Normal Draws 157 156 156 157 156 Special Draws 10 9 4 7 8 Number of Draws 167 165 160 164 164 % Prize Payout 63.5% 62.2% 61.1% 59.7% 63.1% % Operating Margins 11.6% 14.2% 13.7% 11.9% 8.9% Racing Totalisator Business (in RM'000) Gross Proceeds 827,550 780,607 497,554 450,020 577,575 Dividends Payable 643,159 607,337 372,740 325,399 418,858 Taxes & Duties 3 96,658 91,175 72,861 77,403 99,343 Group's Share of Net Surplus 20,117 20,942 9,600 6,919 12,948 Operating Loss (7,682) (2,200) (29,505) (32,036) (20,160) Number of Races 1,367 1,275 1,120 1,086 980 Number of Race Days 153 139 128 131 114 Telelink (in RM'000) Turnover/Gross Proceeds NFO Turnover 13,140 11,858 11,213 12,645 13,836 RTO Gross Proceeds 113,296 90,782 50,766 55,617 86,163 126,436 102,640 61,979 68,262 99,999 Number of Accounts 105,355 80,242 72,997 65,765 54,738 Property Investment (in RM'000) Turnover 39,218 37,203 30,914 25,323 22,654 Operating Profit 32,542 29,004 24,429 20,501 16,202 Occupancy Rate (%) 91.7 90.5 85.3 70.3 63.6

1 Includes results of Tanjong Kling plant from 6 August 1999 2 Commenced open cycle operations in February 2002 and combined cycle operations in March 2003 3 Taxes & Duties : Includes Gaming Tax and Betting & Sweepstake Duties TANJONG PUBLIC LIMITED COMPANY 14 Annual Report & Financial Statements 2004

Chairman’s Statement

“On behalf of the Board of Tanjong plc, Chairman’s Statement it gives me great pleasure to present to you its Annual Report and Financial Statements for the financial year ended 31 January 2004.”

FINANCIAL REVIEW The Malaysian economy grew by 5.2% in 2003, demonstrating considerable resilience during a period of uncertainty. This growth was brought about by strong economic fundamentals, an accommodative monetary policy and decisive Government action in introducing a stimulus Economic Package in May 2003. These measures provided the conditions which were conducive to Tanjong’s progress and, together with the initiatives we took to enhance our earnings and cashflows, have enabled us to report what has been our strongest performance to date. Group turnover increased by 9% or RM222 million to RM2,677 million due largely to the increased contribution of the Power Generation segment upon the Panglima plant successfully commencing commercial operations of its combined cycle phase in March 2003. Another significant contributor to the increase in Group turnover is the Numbers Forecast Totalisator business (“NFO”) segment which recorded a 9% rise to RM1,556 million due to continuing efforts to increase the awareness of NFO products and rigorous enforcement action by the authorities against unauthorised operators. Group operating profit is, at RM660 million, a substantial 17% higher than the previous year’s operating profit of RM562 million. The dominant contributor to this increase is Panglima’s enhanced generating capacity brought about by its combined cycle power plant. The increase in turnover for the NFO business has enabled us to mitigate the adverse impact of the January 2003 increase in Betting & Sweepstake duties and the prize payout structure. NFO operating profit consequently, decreased by RM20 million to RM181 million. The increase in the occupancy rate in Menara Maxis to 92% has enabled us to report a 12% increase in operating profit for Property Investment to RM33 million this year. The Racing Totalisator business segment however recorded an RM8 million operating loss in the current year, due mainly to an increase in overall totalisator expenditure. TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 15

Chairman’s Statement (continued)

Strong operating cashflows continue to be a key characteristic of our core businesses and for the year reviewed, our operating cashflows stood at RM743 million. Of this amount, RM283 million has been

expended on the construction of the Panglima power plant and a further Chairman’s Statement RM268 million was invested in the successful acquisition of the remaining shares of Powertek Bhd (“Powertek“) not owned by the Group. The major financing activity during the year has been in respect of the drawdown of the RM830 million Serial Bonds in March 2003 which were used to repay Panglima’s earlier bridging loan of RM400 million, as well as the construction costs of the Panglima power plant.

EARNINGS PER SHARE The outstanding overall performance has translated into a 24% growth AND DIVIDENDS in earnings per share from 83.8 sen to 103.9 sen in the current year. We have in place a progressive dividend policy that seeks to achieve a balance between long-term capital growth and immediate cash returns. In line with this policy and the improvement in our earnings and cashflows, we declared a first interim dividend of 16 sen tax-exempt and a second interim dividend of 25 sen gross less Malaysian income tax of 28%. The Board is now recommending a final gross dividend of 25 sen per share less Malaysian income tax of 28%. This will result in a total gross dividend for the year of 66 sen per share, a 74% increase over last year’s gross dividend of 38 sen per share. This increase has culminated in an improvement in our dividend payout ratio from 45% last year to 64% this year.

CORPORATE GOVERNANCE We view our efforts in the area of Corporate Governance as an enabler of competitive advantage rather than merely a need to comply with regulatory requirements. We believe that our challenge is to transcend compliance with the applicable requirements and embrace best practice, if in doing so, we are able to enhance shareholder value. Having improved Board and Management governance structures and processes over the last few years, we have now focussed our attention on ensuring the independence and objectivity of the External Auditors, which is fundamental to shareholder confidence. We have, to this end, put in place measures to ensure that our External Auditors, PricewaterhouseCoopers LLP (“PwC”) are free from bias in the provision of non-audit services. We have also implemented a structure enabling the Audit Committee to regularly monitor PwC’s independence, objectivity and effectiveness. We have based our policies and processes primarily on recommendations contained in the UK Combined Code Guidance on Audit Committees (the Smith Guidance). We have also considered the impact of the US Sarbannes-Oxley Act 2002, and the related pronouncements of the US Securities and Exchange Commission, in developing our processes. Our commitment to best practice in Corporate Governance is an ongoing imperative. We continue to be motivated by the support and wide recognition given by our institutional investors, research houses and the media for our efforts and achievements in this vital area. TANJONG PUBLIC LIMITED COMPANY 16 Annual Report & Financial Statements 2004

Chairman’s Statement (continued)

INTERNATIONAL The Accounting Standards Board (“ASB”) in the United Kingdom now requires FINANCIAL REPORTING all UK listed companies to comply with International Financial Reporting STANDARDS Standards (“IFRS”) adopted by the ASB, from 2005 onwards. Subsequent

Chairman’s Statement to this date, Tanjong’s primary consolidated financial statements will be prepared using IFRS. We believe that this is an important step towards common global accounting standards and should lead to improved transparency and comparability for all investors. There will be complexities resulting from this conversion and we are therefore reviewing all implementation aspects, including potential accounting policy revisions, systems impacts and a range of business issues emanating from this fundamental change. We expect that our efforts will enable us to be fully prepared to make the necessary changes on a timely basis.

CORPORATE AND The successful completion of the acquisition of the remaining shares of BUSINESS DEVELOPMENTS Powertek in April 2003 made it essential for the centralisation of group corporate functions under a separate management services entity, Tanjong Management Services Sdn Bhd. This has obviated the duplication of various corporate services as well as enabled a renewed focus on strategic acquisitions, given that Tanjong’s business objectives and corporate identity are distinct from that of its operating subsidiaries. Following the reorganisation, we embarked on the implementation of an Enterprise Resource Planning system which will enable us to capitalise on the synergies of maintaining a common system for all Group companies as well as to achieve efficiencies in integrated strategic and operational management processes. The initial phase of this project is expected to be completed before the end of this year. We are confident that our measures to streamline our people, structures and processes will assist in value creation as they present opportunities for further cost rationalisation, shared services and outsourcing, when these become strategically advantageous to the Group. We have been actively evaluating a number of potential strategic investments throughout the year. Based on our investment criteria, we selected the Tropical Islands investment as a suitable venture in view of its potential for growth and scalability whilst only requiring a small investment outlay. Following the Board’s decision to invest in the Tropical Islands venture, the Group together with its joint venture partner Au Leisure Investments Pte Ltd entered into a Purchase & Loan Contract in July 2003 to purchase the assets of Cargolifter AG Group for Euro 17.5 million, which included the world’s largest freestanding dome and 500 hectares of land in Germany. This was done with the aim of developing the dome into a resort destination housing a variety of themed tropical settings such as a rainforest, sea, lagoon, beaches, park, village and a flower garden. Upon the fulfillment of the relevant conditions, the acquisition was completed on 16 April 2004, and at the same time, we increased our equity interest in the joint venture from 50% to 75%. TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 17

Chairman’s Statement (continued)

CORPORATE SOCIAL We remain committed to ensure that our actions benefit not only our RESPONSIBILITY shareholders but also our employees, the community and the environment. Our work for the betterment of the community in the past

year has revolved around our support for worthwhile causes in various Chairman’s Statement areas including welfare, education, community health, equestrian, sports and the arts. Environmental management of our power plants and the safety and health programmes for the benefit of our employees have continued to be given close attention throughout the year under review.

OUTLOOK Our successful diversification into Power Generation has enabled us to maintain a competitive dividend policy as well as to invest in related businesses that will further enhance shareholder value. We are working diligently on increasing the profitability of our core Gaming and Power businesses, both through acquisitions and organic growth. The extent of our future growth will depend largely on the success of our developmental efforts and your Board relishes the challenge of maintaining the growth momentum that has been achieved thus far.

ACKNOWLEDGEMENTS We acknowledge that in our people, we have the resourcefulness and dedication to transform our values, ideas and strategy into reality. My wholehearted thanks to all our staff who have worked tirelessly to enable us to report yet another commendable set of results. I would like to thank our customers, business associates and investors for their continued cooperation and support. The future holds great potential and challenge for Tanjong and it is, as always, only just beginning.

DATUK KHOO ENG CHOO Chairman Kuala Lumpur 30 April 2004 Business Review 18 RM million 1,000 1,200 Annual Report T 400 600 800 ANJONG PUBLICLIMITEDCOMPANY 200 “ during 2003. these goalswereachieved goals andtheextenttowhich provides aninsightintoour significant businesssegments The followingreviewofour determination andconviction. and executeourplanswith to planouractionsjudiciously business segmentsistherefore challenge foreachofour diversification. Theongoing earnings profilethrough to improvetheresilienceofits excess ofitscostcapitaland achieve earningsgrowthin business objectivesareto OVERVIEW Business Review 2000 164 343 The Group’s overall & Financial Statements2004 unvrOperatingProfit Turnover 2001 533 230 P ” ower Generation 2002 589 229 032004 2003 933 339 1,019 465 opportunities for acquisitionsandfurther plant-upsintheglobalmarket. positioned topursueallgrowth opportunitieswithinMalaysiaandtoseize future hasmadethischallenge eventougher. We arehoweverwell- difficulty insecuringthemandate fornewplant-upsintheimmediate current requirementsofthe Malaysianpowerindustryandtheresulting growth momentumthathas beenestablishedoverthelastthreeyears.The million toRM465million. a 37%increaseinPowerGeneration’s operatingprofitfrom RM339 occupational safetyandhealth.Ouroverallefforts havetranslated into and reliabilitylevels,technicalexcellencehigh standardsin Melaka, sothatthesehavebeenabletoattaintheexpected efficiency focus ontheoperationandmaintenanceofitsother powerplantsin constructing Panglima,Powertekhassuccessfullymaintained acontinuing earlier on,aswelltheremainingconstructioncostsofplant. These fundswereappliedagainst Bonds tosecurePanglima’s projectfinancingatcompetitivetermsandrates. Powertek’s earnings. 2003. We arenowtherefore abletoaccountforanadditional16%of acquisition andthedelistingofPowertekwerebothcompletedinApril RM1.00 eachinPowerteknotownedbytheGroup.Thecompulsory of theacquisitionremaining36,697,256ordinaryshares been passedontoitscustomerintheformoflowtariffs. This hasbroughtaboutconsiderablesavingsinfuelconsumptionthathave efficiency levelthatisamongthehighestinpowergenerationindustry. uses thelatestplanttechnologywhichhasenabledittooperateatan lowest costsperMWintheregion.Apartfromitscostadvantage,Panglima approximately RM1.47billionfora720MWplant,whichisoneofthe below budget.We have hencebeenabletoachieveatotalprojectcostof approach andtightcostcontrolwhichenabledtheprojecttobecompleted increase inthissegment’s turnoverwhichroseby9%toRM1,019million. in Malaysia.Theachievementofthisgoalhasenabledustoreportan Berhad (“Powertek”),thesecondlargestindependentpowerproducer increased to1,490MW, makingourprincipalsubsidiary, Powertek power plant(“Panglima”).Indoingso,ourtotalinstalledcapacityhas successful completionofthecombinedcyclephasePanglima Our keystrategyforPowerGenerationin2003wastoensurethe POWER GENERATION BUSINESS Our presentchallengeinPowerGenerationisthecontinuation ofthe In thecourseofcompletingitscorporatetransformation and During theyear, weissuedRM830millionRedeemableSecuredSerial Another majormilestonein2003wasthesuccessfulcompletion Panglima wasconstructedusingadisciplinedprojectmanagement the RM400million bridging loan taken

TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 21

Business Review (continued)

NUMBERS FORECAST TOTALISATOR BUSINESS (“NFO”) Business Review

After a relatively sluggish performance over the past few years, the NFO segment saw an impressive 9% increase in turnover from RM1,422 million to RM1,556 million registering what has been the segment’s best performance since 1998. The increase was brought about by several factors. First, the NFO industry saw a sharp increase in demand in the second quarter of 2003 due to rigorous enforcement measures which were carried out by the authorities against unauthorised operators. Secondly, we took measures to increase the awareness of our NFO products by sponsoring media programmes and special events. This has enabled our products to appeal to a wider target audience. Marketing innovation has also played a significant role in increasing our market share as was manifested in the later part of 2003 by the introduction of the IBox service. The increased turnover managed to mitigate the impact of the January 2003 increase in Betting & Sweepstake duties and revised payout structure which considerably reduced our NFO operating margins. We therefore recorded a smaller than expected decrease of RM20 million in RM million

1,800 our operating profit from RM201 million to RM181 million. 1,556 1,488 1,478 1,422 Looking ahead, we note that the Telelink channel has significant 1,500 1,398 untapped potential to help overcome the lack of accessibility to our 1,200 products. Whilst the contribution from this channel is still modest, we are 900 encouraged by the growth of its customer base which has met with our 600 192 201 181 expectations. We will commit more resources to improve the various 300 133 175 customer services especially in the area of mobile phone betting and 2000 2001 2002 2003 2004 electronic fund transfers. We will also be implementing various other Numbers Forecast Totalisator structural and tactical plans to ensure that our immediate and long term Turnover Operating Profit growth targets are achieved. Business Review 22 RM million Annual Report T -150 300 450 600 750 900 ANJONG PUBLICLIMITEDCOMPANY 150 0 Business Review 2000 2)(2 3)()(8) (2) (30) (32) (20) 578 & rs rcesOperatingLoss Gross Proceeds Financial Statements2004 2001 450 Racing Totalisator 2002 498 032004 2003 781 (continued) 828 promoting thethoroughbredbreedingindustryincountry. incentive races,isanintegralpartofourefforts towardsdevelopingand auctioned off forRM4.1million.TheSale,alongwiththeNSF-sponsored horses, comprising29localbredsand32imports,wassuccessfully Sale atthePenangTurf Clubduringtheyear. Atotalof61two-year-old RM8 millionduetoanescalationinoveralltotalisatorexpenditure. proceeds, werecordedanincreaseinoperatinglossfromRM2millionto race daytoRM442perthisyear. Despitetheincreasedgross although spendingperpuntersawaslightdeclineof4%fromRM462 course centressimilarlyincreasedby10%to1.87millionpunters being conductedthisyear. Theattendanceattheturfclubsandoff- year toRM828million.Thiswasachievedthroughanadditional92races increase fortheyearunderreview, fromRM781millionintheprevious Racing totalisatorgrossproceedscontinuedtoimproveandsawa6% RACING TOTALISATOR BUSINESS(“RTO”) The NationalStudFarm(“NSF”)helditstwelfthPremier

TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 25

Business Review (continued)

LEISURE BUSINESS Business Review

In July 2003, the Group entered into a Purchase & Loan Contract to purchase TROPICAL ISLANDS the assets of Cargolifter AG Group for Euro 17.5 million, which included the world’s largest freestanding dome and 500 hectares of freehold land near Berlin in the Federal Republic of Germany. We intend to develop the dome into a resort destination with a year-round tropical setting comprising different themed areas of natural islands such as a rainforest, sea, lagoon, beaches, park, village, flower garden and market place. Tropical Islands has also been conceived as a lifestyle destination showcasing the culture, food and entertainment unique to various tropical countries around the world. The scheduled activities in Tropical Islands are designed to appeal to a wide spectrum of visitors encompassing all age and income groups. In order to maintain continuing interest in its activities, the environment and entertainment themes will be changed from time to time. Market segmentation techniques will also be used to cater for the differing needs of high and average spending patrons. The acquisition of the aforementioned assets was completed on 16 April 2004. On the same date, we acquired a 75% equity interest in Tropical Islands S.A.R.L. (“TISARL”), the company which will undertake the project. Our partner, Au Leisure Investments Pte. Ltd. holds the remaining 25% equity interest in TISARL. A Project Committee has been formed to drive the project to ensure that the attendant construction, resource, marketing, financing and other operational issues are duly addressed in order that we can successfully meet our scheduled completion date in the fourth quarter of 2004.

Tanjong Golden Village Sdn Bhd registered a 13% increase in admissions TANJONG GOLDEN VILLAGE during the year, up from 6.1 million patrons to 6.9 million patrons. Gross box office receipts increased correspondingly by 16% from RM50 million to RM58 million. The higher turnover is attributable to the Government’s continued clampdown on video piracy as well as a strong following for movie sequels and franchise titles. Business Review 26 RM million Annual Report T ANJONG PUBLICLIMITEDCOMPANY 10 20 30 40 Business Review 2000 23 16 & Financial Statements2004 unvrOperatingProfit Turnover Property Investment 2001 25 21 2002 31 24 2003 37 29 (continued) 2004 33 39 29% increaseinourinvestmentsince1999. Maxis hasincreasedfromRM365milliontoRM470million,asignificant valuation reportdatedDecember2003,themarketvalueofMenara open marketvalueofMenaraMaxis.Basedontheirprofessional once everyfiveyears,weengagedprofessionalvaluerstoadviseonthe RM29 milliontoRM33million. profit forthissegmentconsequentlyincreasedbyRM4millionfrom which amountedtoRM39millioninthefinancialyear. Operating tenancies. We werehenceabletoachievea5%increaseinturnover inclusion ofanothertwoqualitytenantsandtherenewalexisting compromising onthequalityofourtenantbase.2003sawwelcome respectable occupancyrateof92%withoutsacrificingourrentalratesor demand. MenaraMaxishashoweversucceededinmaintaininga market haspersistedasthebuild-upofnewspacecontinuestooutstrip Despite thegrowthinMalaysianeconomy, theglutinoffice space obtain thebestpossiblepriceforitsunderlyingassets. this business.Ournegotiationsareongoingandwedeterminedto been indiscussionswithinterestedpartiesonapossibledivestmentof environment. We have beenminimisingouroperatingcostsandhave The LPGbusinesscontinuestolanguishunderaverydifficult operating LIQUEFIED PETROLEUMGASBUSINESS PROPERTY INVESTMENTBUSINESS In accordancewithourpolicyofcarryingoutexternalvaluations

TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 29

Corporate Social Responsibility

Corporate social responsibility is a reflection of our firm belief that our actions should not only improve shareholder value, but also benefit our employees, society and the environment. Our Statement of General Business Principles guides our initiatives on the health and safety of our employees, conservation of resources and environmental protection, as well as our contributions to the communities within which we operate. Corporate Social Responsibility Our employees are key to our success and in recognition of this, we continue to implement various Occupational Safety and Health measures to entrench safety and health consciousness among our employees. Fire fighting courses, first aid and cardiopulmonary resuscitation training, fire drills, building and plant evacuation exercises as well as safety and health talks were, as in previous years, among the activities carried out. During the year, we implemented Occupational Health and Safety Management Systems complying with OHSAS 18001:1999 in two of our Power Plants and our vigilance has been rewarded with another accident-free year. At Menara Maxis, we regularly conduct safety system checks and drills on all safety related equipment. Environmental management at our power plants continues to be given close attention. We maintain strict compliance with the environmental laws governing plant operations and maintenance in areas relating to environmental standards, emission standards, noise level management and treatment of plant effluents and waste water. Our new Panglima power plant has recently implemented Environmental Management Systems which comply with the MS ISO 14001:1997. Our work towards improving the community is fundamental to our corporate social responsibility agenda. It is our belief that education plays a very important role in nation building by the creation of a knowledge- based society. With this in mind, we have contributed RM5 million towards the setting up of Universiti Tunku Abdul Rahman or UTAR, hence creating greater opportunities for Malaysians to pursue their tertiary education. When organising community development projects, we have contributed both in cash and through the voluntary participation of our staff. In doing so, we have not only enriched the experience of the needy but have also instilled in our staff a deep sense of compassion for those in dire need of help. Throughout the year, we partnered the community in various outreach projects and Staff-in-the-Community programmes to help the needy and the underprivileged in various aspects including health, welfare and education. We have also contributed to a spectrum of charitable and non-profit organisations benefiting deserving individuals of all ages, races and religions. In our on-going efforts to support the development of rural electrification projects and research and development for the electricity supply industry, we have contributed substantially to the Electricity Supply Industry Trust Fund which administers these programmes. Corporate Governance Statement 30 Annual Report T ANJONG PUBLICLIMITEDCOMPANY expenditure, acquisitions ordisposalsofinvestments andallmajorcorporate proposalsandannouncements. of theStrategicPlan,Business Plans,keyfinancialandoperatingpolicies,significant capitaloroperating meetings wereheldduring thefinancialyear. for allscheduledmeetingsand additionalmeetingsareconvenedforurgentand important matters.NineBoard Annual Report,theBusiness Planandtoreviewtheperformanceofitsoperatingsubsidiaries. Duenoticeisgiven The Boardmeetsatleastquarterlyandalsoonother occasionstointer-alia, approveQuarterlyReports,the Board Meetings incorporated withintheReportofDirectors. responsibilities hasensuredabalanceofpowerandauthority. Committees aredisclosedbelow. NoneoftheseDirectorsparticipate intheday-to-daymanagementofGroup. membership oftheAudit,RemunerationandNominating Committees.Thedetailsofmeetingsandactivitiesthese bring experienceandjudgementtobearonissuesofstrategy, performance,resourcesand ethical standards. direction oftheGroup.ThebiographiestheseDirectors(seePages5&6)demonstratenecessarydepth to further reflectsamixoffinancial,technicalandbusinessexperiencesthathasbeenvitaltothesuccessful objectivity andwillenableittomoreeffectively dischargeitsoversightfunction.ThecompositionoftheBoard reconstitution oftheBoardtoincludeasubstantialmajorityNon-ExecutiveDirectorshasenhancedBoard’s Executive Directors,twoofwhom(includingtheChairman)areindependent;andoneDirector. The The Boardwasre-constitutedduringthefinancialyearandnowhasfivemembers,comprisingfourNon- Board CompositionandBalance obligations toitsshareholdersandotherstakeholdersareunderstoodmet. management performance.TheBoardalsoestablishestheGroup’s valuesandstandardsensuresthatits that thenecessaryfinancialandhumanresourcesareinplaceforGrouptomeetitsobjectivesreviews and effective controlswhichenableriskstobeassessedandmanaged.ItsetstheGroup’s strategicaims,ensures affairs. The Board’s roleistoprovideentrepreneurialleadershipoftheGroupwithinaframeworkprudent The BoardiscollectivelyresponsibleforpromotingthesuccessofGroupbydirectingandsupervising its The RoleoftheBoardDirectors DIRECTORS Malaysian CodeandcompliedwiththeBestPracticesstatedtherein. Statement, theBoardhasconsideredmannerinwhichTanjong hasappliedthevariousprinciplesof T Compliance withtheMalaysianCode principles thereintotheextentdescribedinthisstatement. the PrinciplesofGoodGovernanceandCodeBestPractice(“UKCombinedCode”),hasadheredto Additionally, theBoardhasfoundmeritinrecommendationsrelatingtorevisedUKCombinedCodeof and BestPracticespromulgatedintheMalaysianCodeofCorporateGovernance(“MalaysianCode”). strives tocontinuallyimproveonTanjong’s governanceprocessesandstructuresasarticulatedinthePrinciples The BoardofDirectors(“Board”)iscommittedtomaintaininghighstandardscorporategovernanceand Corporate GovernanceStatement anjong hascompliedwiththeMalaysianCodethroughoutfinancialyearunderreview. Inpreparingthis The BoardhasinplaceaSchedule ofMattersreservedspecificallyforitsdecisions.These includetheapproval A StatementbytheDirectorsoftheirresponsibilities forpreparingthefinancialstatementsisnow The appointmentofanIndependentChairman on theBoardwithoutexecutivemanagement The IndependentDirectorsfulfillanindependent,pivotal roleincorporateaccountability, hencetheir & Financial Statements2004 TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 31

Corporate Governance Statement (continued)

Supply of Information The Board has unrestricted access to information required to enable it to discharge its duties. Regular and ad-hoc reports are provided to all Directors to ensure that they are apprised on key strategic, financial, operational, legal, regulatory, corporate and social responsibility matters in a timely manner. Procedures have been established concerning the content, presentation and delivery of papers for each Board and Board Committee meeting as well as for matters arising from meetings. The Directors have access to the Head of Group Corporate Assurance and the Corporate Governance Statement Group Company Secretary. The Secretary advises the Directors on their duties and the appropriate requirements and procedures to be complied with in relation thereto including the management of their meetings. The Secretary also advises on the implementation of corporate governance measures within the Group. The Directors may take independent professional advice at the Group’s expense, in furtherance of their duties.

Directors’ Training All new directors are required to undergo an orientation programme to provide them with the necessary information to enable them to contribute effectively from the outset of their appointment. The programme includes organised site visits to the Group’s power plants and project sites. All Directors have attended the mandatory accreditation programme prescribed by the Bursa Malaysia. In addition, Directors have also been attending and participating in other forums and programmes for the continuing enhancement of their knowledge, particularly on essential practices for effective corporate governance, role of boards in preventing fraud, importance of business continuity planning and risk management.

Re-election of Directors All Directors are required to offer themselves, on a rotation basis, for re-election by shareholders at the Annual General Meeting. The Articles of Association of the Company require all Directors to submit themselves for re- election at least once every 3 years.

Board Committees The Board recognises that it would be more effective to delegate the detailed responsibilities in achieving certain of its fiduciary duties to Board Committees. Each Committee is governed by its own remit. To this end, it has in place the following Committees:

Nominating Committee Board appointments are effected through the Nominating Committee, which is responsible for making recommendations to the Board on all new Board and Board Committee appointments based on a formalised transparent procedure to ensure appointees have the appropriate balance of experience, abilities and skills. A procedure and process towards an annual assessment of the effectiveness of the Board as a whole and the contribution of each individual Director and Board Committee member was reviewed and enhanced during the year. A set of questionnaires to assess the effectiveness of the Board and its members has been developed and the assessment process has been completed. The Committee has also reviewed the required mix of skills and experience of the Directors during the year, in determining the appropriate Board balance and size of non-executive participation. In January 2003, Derek Higgs issued a report on the “Review of the role and effectiveness of non-executive directors”, which now forms part of the UK Combined Code. The Committee has revised the terms of appointment of the Non-Executive Directors in accordance therewith.

Audit Committee The composition, terms of reference and a summary of the activities of the Audit Committee are set out separately in the Audit Committee Report. Corporate Governance Statement 32 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Details oftheattendanceatBoardandCommitteemeetingsaretabulatedbelow. Attendance atBoardandCommitteeMeetings Option Committee Executive Committee Remuneration Committee provides pertinent andupdatedinformation onthecorporateandbusiness aspectsoftheGroup. initiatives subjecttoitsCorporate DisclosurePolicy. Tanjong maintainsawebsiteatwww.tanjongplc.com which the Companymaintainsdialogues withitsshareholdersasandwhenrequiredtosupplement itscommunications through pressreleases, conferences,announcementsofquarterlyresultsand the AnnualReport.Inaddition, other shareholders.Information ontheGroup’s businessactivitiesandfinancialperformance isdisseminated The Boardrecognisestheneed forclear, effective communicationswiththeCompany’s institutional investorsand Communications betweentheCompanyanditsInvestors SHAREHOLDERS 3 2 1 Notes: - Corporate GovernanceStatement This Commiteeincludesanon-Boardmember Retired on1April2003 Appointed asamemberwitheffect from 1April2003 en a on – – 2 5 6 9 Ooi BoonLeong Leong Wai Hoong uutsRlhMrhl 1 4 – – – 9 T Augustus RalphMarshall Executive hoTi ho – 2 – 4 – 2 – 5 – 6 9 9 T Khoo Teik Chooi Datuk KhooEngChoo Non-Executive the Boardonallprincipalmattersrelatingtoschemeandmeetsaquarterlybasisothertimesasrequired. scheme andestablishes,amendsorrevokesanyguidelinesrelatingtothescheme.TheOptionCommitteealsoapprises bye-laws. TheCommitteedeterminesallmattersofpolicythatmayariseintheeffective administrationofthe The OptionCommitteeadministerstheimplementationofTanjong plcESOSNo.2inaccordance withtheapproved businesses; andtomaximiseprofitabilityenhanceshareholdervalue. Its roleistoprovideoverallbusinessandstrategicdirection,reviewtheprogressperformanceofTanjong’s The ExecutiveCommitteewhichwasformedinMay2003comprisestheChairmanandDirector. benchmarks andotherdetailedinformationrelatingtotheremunerationofTanjong’s Directors. The Reportoutlinesimportantinformationonpolicy, servicecontracts,remunerationpackage,performance Report thathasbeenpreparedinaccordancewithSchedule7AoftheUnitedKingdomCompaniesAct1985. The reportoftheRemunerationCommitteeanditsactivitiesisincludedinaseparateDirectors’ otal no.ofmeetings nPhCig95 9 an PohChing & Financial Statements2004 Number ofmeetingsheldandattendedbetween1Feb2003to31Jan2004 2 or omte omte omte omte Committee Committee Committee Committee Committee Board 65242 4 2 5 96 – – 1 1 31 ui eueainNmntn xctv Option Executive Nominating Remuneration Audit 1 (continued) –––– 3 TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 33

Corporate Governance Statement (continued)

The Board encourages normal channels of contact with the Chairman but acknowledges that there might be instances where issues may not be completely resolved. For this purpose, the Board has identified Mr. Leong Wai Hoong as the Senior Independent Director to whom all concerns or queries may be conveyed. Mr. Leong can be contacted by post at Level 30, Menara Maxis, Kuala Lumpur City Centre, 50088 Kuala Lumpur, fax at number 603-2381 3322 or e-mail at [email protected]. Corporate Governance Statement Annual General Meeting The Annual General Meeting (“AGM”) is the principal forum for dialogue with all shareholders who are encouraged and given sufficient opportunity to enquire about the Group’s activities and prospects as well as to communicate their expectations and concerns. All Board members, Senior Management and the Group’s External Auditors are available to respond to shareholders’ questions during the AGM. Any item of special business included in the Notice of the AGM will be accompanied by a full explanation of the effects of a proposed resolution. Separate resolutions are prepared for different transactions and the Chairman declares the outcome of the resolutions voted upon.

ACCOUNTABILITY AND AUDIT Financial Reporting The Board aims to convey a balanced and understandable assessment of the Group’s position and prospects in presenting the Quarterly Reports, Annual Reports and other financial reports to the Company’s shareholders and its regulators. The Annual Report incorporates the disclosure requirements of both the Accounting Standards applicable in the United Kingdom as well as the approved Accounting Standards applicable in Malaysia. Where there are differences in the application of the said Accounting Standards, a detailed explanation is provided on the reasons for the differences together with a full disclosure of the financial impact of these differences.

Internal Controls The Board has conducted a review of the effectiveness of the Group’s System of Internal Control. The scope and results of the review are detailed in the Internal Control Statement for the Group.

Relationship with the Auditors External Auditors The Group maintains a professional and transparent relationship with its external auditors which comprise representatives from the Malaysian and United Kingdom firms of PricewaterhouseCoopers. External Auditors attend all Quarterly Audit Committee meetings and the Audit Committee members have held one separate meeting exclusively with the External Auditors.

Internal Auditors The Group Internal Audit Department has been re-designated as the “Group Corporate Assurance Department” to better reflect its role within the Group. The Head of Group Corporate Assurance also attends all Audit Committee meetings and the Group Internal Audit Charter stipulates that he has a functional reporting responsibility to the Audit Committee Chairman.

Other facets of the relationship between the Auditors and the Audit Committee are elaborated in the Audit Committee Report. Audit Committee Report 34 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .SUMMARY OFACTIVITIES 2. MEMBERSHIPANDMEETINGS 1. Audit CommitteeReport • • • • • • • • • • Report. ThemajoractivitiesundertakenbytheAuditCommitteeuptodateofthisReportwereasfollows: The AuditCommitteehasdischargeditsdutiesassetoutinTerms ofReferencewhich accompanythis Datuk KhooEngChoo, Directors. The AuditCommitteepresentlycomprisesthreeNon-ExecutiveDirectors,twoofwhomareIndependent Leong Wai Hoong, T the financialyear. was separatelyheldwiththeGroup’s ExternalAuditors.TheAuditorsattendedallmeetingsduring Executive DirectorandSeniorManagementwereinvitedtoallthesemeetingsexceptforonemeetingwhich The AuditCommitteeheldsixmeetingsduringthefinancialyear, whichwereattendedbyallmembers. The (Appointed asaMemberon1April2003) an PohChing, new requirement toreviewtheallocation ofemployees’shareoptions (paragraph3.5). independence, objectivityand effectiveness oftheExternalAuditors(seeparagraphs3.2 to3.4)andthe Recommended forBoardadoption, changestotheCommittee’s Terms ofReferenceinrespectthe prevailing professionaland ethicalguidance. and effectiveness oftheExternalAuditors, takingintoaccountrelevantUKregulatoryrequirements and Reviewed andadoptedpolicies andprocessframeworkonthemonitoringof independence, objectivity the provisionofnon-auditservices,ensuringthatthese areinaccordancewithcurrentbestpractice. Reviewed andadoptedchangestopoliciesprocedures ontheengagementofExternalAuditorsin were nottothedetrimentofminorityshareholders. terms thatwerenotmorefavourabletotherelatedparty thanthosegenerallyavailabletothepublicand Determined theproprietyofproposedrelatedpartytransactions toensurethattheywereundertakenon brought totheattentionofBoardDirectors. and toconsiderwhetherthereweresignificantrisk, internalcontrolorotherconcernsthatshouldbe Met separatelywiththeExternalAuditorstoascertain the qualityandreliabilityofaccountingfunction impact oftheseriskscrystallising. Operating Officer outliningenterprisewiderisks,risktreatment measuresandtheresultinglikelihood Reviewed anddiscussedthePrincipalBusinessRisksScheduleRiskMappresentedbyGroupChief requirements intheUKandMalaysiaaswellclaritycompletenessofdisclosurestherein. Reviewed QuarterlyReportsandtheAnnualReportsupportingdatatoensureadherencereporting address theseareas. their findingswithSeniorManagementtoensurethatappropriateandtimelymeasureshadbeentaken significant riskareas,internalcontrolandfinancialreportingmatterscomingtotheirattention.Discussed Evaluated theinterimandfinalreportsofExternalAuditorsGroupCorporateAssuranceregarding appropriate authoritytoeffectively dischargeitsprofessionalresponsibilities. corporate governanceoftheGroup.EnsuredthatGroupCorporateAssurancehadadequateresourcesand to assesswhetherauditprioritieswereestablishedaccordingtherelativerisksandneedforeffective Reviewed theAuditPlansofGroupCorporateAssuranceDepartment(“GroupAssurance”) compliance issuesandfeesproposedforauditreviewwork. extent andtimingofauditworktobeperformed,emergingfinancialreporting,risk,control Discussed andreviewedwithPricewaterhouseCoopersLLP, theexternalauditplancoveringnature, & Financial Statements2004 Member Member Chairman – – – Independent Director Independent Director Non-Executive Director TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 35

Audit Committee Report (continued)

3. GROUP CORPORATE ASSURANCE FUNCTION The Group Internal Audit Department has been re-designated as the Group Corporate Assurance Department in recognition of its enhanced role in proactively contributing to the development of the Group’s risk

management, assurance, control and governance processes. Group Corporate Assurance assists the Audit Audit Committee Report Committee of the Board and Management in the effective discharge of their responsibilities, by providing assurance and consulting activities designed to add value towards accomplishment of the Group’s objectives. The Head of Group Corporate Assurance independently reports to the Audit Committee Chairman as required by the Charter approved by the Audit Committee. Group Corporate Assurance is adequately resourced with professionals and benchmarks itself against prevailing best practices in internal auditing. It also adopts a risk- based approach to audits, both at activity and entity-wide levels and its evaluations are communicated to both Management and the Audit Committee in a timely manner. All critical activities and operations are reviewed and the implementation status of audit recommendations is monitored and reported to the Audit Committee to assure that key risk and control concerns are being effectively managed. During the financial year, the major areas of work accomplished by Group Corporate Assurance and reported to the Audit Committee and ultimately to the Board were as follows; • Implemented the half yearly audit plans as laid out in the Strategic Review Plan (2003 to 2005) encompassing audit coverage of all significant business areas upon identifying and evaluating the respective risks and control environment. • Conducted financial, operational and information technology audits covering the power generation, numbers forecast, racing totalisator, telelink and property investment businesses. The respective operations in the power plants, area offices and information technology support systems were reviewed and observations reported to the Audit Committee. Other critical Group corporate functions that were also audited were treasury, finance and procurement operations. • Conducted follow-up work on previous audit recommendations to ensure that appropriate corrective actions were instituted or were in the process of being instituted and subsequently updated the Audit Committee on the implementation status of all outstanding recommendations. • Assisted in the evaluation and reporting of the Group’s principal business risks and risk methodology employed and facilitated the process of ensuring that risk mechanisms are pro-actively embedded within the existing risk framework.

TERMS OF REFERENCE OF THE AUDIT COMMITTEE 1. Membership 1.1 The Committee shall be appointed by the Board from amongst their number and shall be composed of not fewer than three (3) members, the majority of whom shall be Independent Directors. 1.2 At least one member of the Audit Committee: (a) must be a member of the Malaysian Institute of Accountants; or (b) if he is not a member of the Malaysian Institute of Accountants, he must have at least 3 years’ working experience and: (i) he must have passed the examinations specified in Part I of the 1st Schedule of the Accountants Act 1967; or (ii) he must be a member of one of the associations of accountants specified in Part II of the 1st Schedule of the Accountants Act 1967. 1.3 The Board must ensure that no alternate Director is appointed as a member of the Audit Committee. 1.4 The members of the Committee shall elect a Chairman from amongst their number who shall be an Independent Director. Audit Committee Report 36 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .FunctionsandDuties 3. .AuthorityandRights 2. Membership(continued) 1. TERMS OFREFERENCETHEAUDITCOMMITTEE(continued) Audit CommitteeReport . ReviewthefollowingandreportsametoBoardofCompany: 3.1 The Committeeshall,amongstothers,dischargethefollowingfunctions: . TheCommitteewherevernecessaryandreasonablefortheperformanceofitsduties,shallinaccordance 2.1 TheappointmentofaCommitteememberterminateswhentheceasestobeDirector. 1.6 IfamemberoftheCommitteeresigns,diesorforanyreasonceasestoberesulting innon- 1.5 & Financial Statements2004 h anyrelatedpartyand intercompanytransactionsand conflictofinterestsituations thatmayarise (h) g thequarterlyresultsandannualfinancial statementspriortotheapprovalbyBoard,focusing (g) theinternalauditprogramme,processes,resultsof processesor (f) (e) theassistancegivenby employeesoftheGrouptoExternalandInternalAuditors; (d) withtheExternalAuditors,theirauditreport; (c) withtheExternalAuditors,theirevaluationofqualityandeffectiveness oftheentireaccounting (b) withtheExternalAuditors,auditplan,scopeofworkandascertainthatitwill meetthe (a) f beabletoconvenemeetingswiththeExternalAuditors,excludingattendanceofexecutive (f) beabletoobtainindependentprofessionalorotheradviceandsecuretheattendance of (e) havedirectcommunicationchannelswiththeExternalAuditorsandperson(s)carryingout (d) havefullandunrestrictedaccesstoanyinformationpertainingtheGroup; (c) havetheresourceswhicharerequiredtoperformitsduties; (b) haveauthoritytoinvestigateanymatterwithinitsTerms ofReference; (a) with theproceduredeterminedbyBoardandatcostofCompany: of newmembersasmayberequiredtomakeuptheminimumnumberthree(3)members. reduced tobelowthree(3),theBoardshall,within(3)monthsofthatevent,appointsuchnumber compliance withsubparagraphs1.1and1.2above,theresultthatnumberofmembersis procedure or course ofconductthatraises questionsofmanagement integrity; within theCompany/Group andanyrelated partiesoutsidetheGroup includinganytransaction, particularly on: of corporateassurance; investigation undertakenandwhetherornotappropriate actionistakenontherecommendations necessary authoritytocarryoutitsworkincludinginter-alia the appointmentofInternalAuditors; the adequacyofscope,functionsandresourcesGroup CorporateAssuranceandthatithasthe Group’s operationsandefforts andprocessestakentoreducetheGroup’s operationalrisks; system, theadequacyandintegrityofinternalcontrolsystemefficiency ofthe needs oftheBoard,shareholdersandregulatoryauthorities; members oftheGroup,wheneverdeemednecessary. outsiders withrelevantexperienceandexpertiseifitconsidersthisnecessary; internal auditfunctionoractivity(ifany); i)compliancewithaccountingstandards,other statutoryandlegalrequirementsthegoing (iv) theaccuracy andadequacyofthedisclosureinformation essentialtoafairandfull (iii) significantandunusual events; (ii) changesinorimplementationofmajoraccountingpolicy changes; (i) concern assumption; presentation ofthefinancial affairs oftheGroup; (continued) TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 37

Audit Committee Report (continued)

TERMS OF REFERENCE OF THE AUDIT COMMITTEE (continued) 3. Functions and Duties (continued) (i) the propriety of accounting policies, principles and practices adopted by the management and

accepted by the External Auditors, where alternatives are also acceptable; Audit Committee Report (j) any significant audit findings, reservations, difficulties encountered or material weaknesses reported by the External and Internal Auditors. 3.2 Oversee the process of the appointment and removal of the external auditors and make appropriate recommendations through the Board to the Shareholders to consider at the Annual General Meeting. 3.3 Recommend the audit fee to the Board and pre-approve fees in respect of non-audit services that may be performed by the external auditors, ensuring that the provision of such services does not impair the independence and objectivity of the external audit firm. 3.4 Review and monitor the independence and objectivity of the external auditors and the effectiveness of the audit process annually, taking into consideration relevant UK professional and regulatory requirements. 3.5 Review the allocation of options in accordance with established allocation criteria as set out in any prevailing bye-laws governing employee or other share option schemes. 3.6 Promptly report to the Bursa Malaysia Securities Berhad (“Bursa Malaysia”) on any matter reported by it to the Board of the Company which has not been satisfactorily resolved resulting in a breach of the Bursa Malaysia Listing Requirements. 3.7 Submit to the Board on a periodic basis a Report on the summary of activities of the Audit Committee in the discharge of its functions and duties in respect of each financial quarter and the financial year. 3.8 Carry out any other function that may be mutually agreed upon by the Committee and the Board which would be beneficial to the Company and ensure the effective discharge of the Committee’s duties and responsibilities.

4. Meetings and Minutes 4.1 To form a quorum in respect of a meeting of the Committee, the majority of members present must be Independent Directors. 4.2 A minimum of four meetings per year are to be planned, although additional meetings may be called at any time at the Audit Committee Chairman’s discretion. An agenda shall be sent to all members of the Committee and any other persons who may be required/invited to attend. All meetings to review the quarterly results and annual financial statements, shall be held prior to such quarterly results and annual financial statements being presented to the Board for approval. 4.3 Notwithstanding paragraph 4.2 above, upon the request of any member of the Committee, the External Auditors or the Internal Auditors, the Audit Committee Chairman shall convene a meeting of the Committee to consider the matters brought to its attention. 4.4 In addition to the Committee members, the meeting will normally be attended by representatives of the External Auditors and by the Head of Group Corporate Assurance. Any Board members, or any member of Senior Management or any other relevant employee within the Company may be invited to attend as determined by the Audit Committee Chairman. 4.5 At least once a year, the Committee shall meet with the External Auditors without the Executive Director and Senior Management being present. 4.6 Detailed minutes of the Committee’s meetings will be made available to all Board members. A summary of significant matters and resolutions will be reported to the Board by the Committee. 4.7 The books containing the minutes of proceedings of any meeting of the Committee shall be kept by the Company at the principal office of the Company, and shall be open to the inspection of any member of the Committee and the Board. 4.8 The Committee may establish any regulations or procedures from time to time to govern its meetings, keeping of minutes and its administration. 4.9 The Group Company Secretary shall act as the Secretary to the Committee. TANJONG PUBLIC LIMITED COMPANY 38 Annual Report & Financial Statements 2004

Internal Control Statement

The Board of Directors is ultimately responsible for the Group’s system of internal control and for reviewing its effectiveness in providing shareholders with a return on their investments that is consistent with a responsible assessment and management of risks. Because of the limitations that are inherent in any system of internal control, such systems are designed to Internal Control Statement manage rather than eliminate the likelihood of fraud, error or failure to achieve Tanjong’s business objectives. Accordingly, these systems can provide only reasonable and not absolute assurance against material misstatement or loss. The concept of reasonable assurance also recognises that the cost of controls should not exceed the expected benefits. The External Auditors have reviewed this Statement pursuant to paragraph 15.24 of the Bursa Malaysia Listing Requirements and have reported to the Board that it appropriately reflects the processes that the Board has adopted in reviewing the adequacy and integrity of the system of internal control. There were no significant internal control deficiencies or material weaknesses resulting in material losses or contingencies requiring disclosure in the Annual Report. In addition to the monitoring of internal controls by the Audit Committee, the Group’s system of internal controls comprises the following key elements:

• Control Environment The Board has approved a Statement of General Business Principles and Human Resource Policies and Procedures that set the tone of control consciousness and employee conduct. There is also in place supporting procedures for the reporting and resolution of actions contravening these policies. There is, furthermore, a Limits of Authority manual that delineates authorisation limits to ensure proper identification of accountabilities and segregation of duties.

• Control Procedures Detailed budgets are prepared requiring management and Board approval. Operational manuals have been established to guide key business processes and accounting manuals are in place towards ensuring that the recording of financial transactions are complete and accurate. Procedures also exist for mitigating exposures to losses arising from material fraud or error.

•Information and Communication Group business units monitor and explain performance against budgets on a monthly basis. The results are reviewed by the Board on a quarterly basis to enable it to gauge the Group’s achievement of its annual targets. Financial reports are submitted prior to each quarterly meeting, analysing trend and budget variances as well as reporting on fluctuations in non-financial metrics. Operational Reports are issued every quarter discussing strategy implementation, industry analysis, legal and regulatory developments and other operational issues.

• Monitoring In addition to Management’s monitoring procedures, which are embedded within the Group’s policies, processes and activities, independent engagements are carried out by Group Corporate Assurance and are communicated to the Audit Committee and ultimately to the Board, to enable a timely evaluation of the adequacy and integrity of the Group’s system of internal control. TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 39

Internal Control Statement (continued)

• Risk Management There is in place a formal and on-going process to identify, evaluate and manage significant risks faced by the Group. This process entails the overall establishment of an appropriate framework to embed risk management precepts in the processes and activities of the Group. Internal Control Statement Effectively, this includes identifying principal business risks in critical areas, assessing the likelihood and impact of material exposures and determining its corresponding risk mitigation and treatment measures. A schematic diagram of the processes is presented below.

Risk Management Process

Measure & Identify Treat Report Prioritise

Consider existing Determine residual Determine core Determine gross controls/mitigation risk ratings vis-a-vis processes and risk ratings and and treatment Risk Matrix and corresponding prioritise measures evaluate the need for objectives (“measures”) further measures (if any)

-Identify causes and Risk Management determine likelihood; Evaluate effectiveness Committee evaluates Identify key risks and of existing measures completeness and accuracy impacting process on likelihood and objectives/criteria - Determine of principal business risks consequences and impact of risks and corresponding business impact measures to manage them

Report to Audit Committee and the Board of Directors

The on-going processes are co-ordinated by Group Corporate Assurance in conjunction with all corporate and business heads within the Group; reporting periodically to the Risk Management Committee (“RMC”) which has been chaired by the Group Chief Operating Officer (“COO”). The following activities were undertaken by the RMC:

•Risk Management Policies and Procedures have been developed and presented to the Audit Committee and ultimately to the Board.

•Workshops have been conducted for line managers to instill in them risk and control consciousness with a view of inculcating a risk based culture within the Group. This was followed by the completion of Risk Registers for core business activities.

• Principal Business Risk Schedules and a Risk Map summarising the risk ratings have been completed and presented by the COO to the Audit Committee and ultimately, to the Board. Based on the above reports, it has been concluded that all identified risk factors have adequate measures to reduce the likelihood of the risks crystallising and to mitigate the loss impact in the event these risks were to crystallise. THIS PAGE HAS BEEN LEFT BLANK 66 60 59 58 57 56 55 54 53 46 42 61 51 Financial Statements Notes totheFinancialStatements Significant AccountingPolicies Company CashFlowStatement Group CashFlowStatement Reconciliation ofMovementsinShareholders’FundsandReserves Company BalanceSheet Group BalanceSheet Company ProfitandLossAccount Statement ofGroup’s Total RecognisedGainsandLosses Group ProfitandLossAccount Independent Auditors’Report Directors’ RemunerationReport Report oftheDirectors Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 41 Financial Statements TANJONG PUBLIC LIMITED COMPANY 42 Annual Report & Financial Statements 2004

Report of the Directors

The Directors are pleased to present herewith their report together with the audited financial statements of the Company and of the Group for the year ended 31 January 2004.

Financial Statements PRINCIPAL ACTIVITIES The Company is an investment holding company.

The principal activities of the Group are: (i) the development, ownership and operation of Power Generation plants; (ii) the operation of the Numbers Forecast Totalisator (“NFO”) business; (iii) the operation of the Racing Totalisator (“RTO”) business; (iv) the ownership and operation of Property Investment assets; and (v) the importation, bottling, sale and distribution of Liquefied Petroleum Gas (“LPG”).

The Group is also involved in the following other business activities; (i) a joint venture in the film exhibition business; (ii) the development, ownership and operation of a resort (see Note 26).

All of the above activities are carried out in Malaysia except for the LPG business which is carried out in the People’s Republic of China and the resort business which is carried out in the Federal Republic of Germany.

REVIEW OF RESULTS A review of the results of the Group for the year and an indication of future developments are included in the Chairman’s Statement. In summary, the financial results achieved by the Group for the year under review are as follows:

2004 2003 RM’000 RM’000 Profit on ordinary activities before taxation 587,961 521,368 Taxation (173,415) (159,052)

Profit on ordinary activities after taxation 414,546 362,316 Minority interests (9,065) (39,197)

Profit for the financial year 405,481 323,119 Dividends (205,588) (117,482)

Retained profit for the financial year 199,893 205,637 TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 43

Report of the Directors (continued)

FIXED ASSETS Changes in tangible assets during the year are shown in Note 8 to the financial statements.

DIVIDENDS Financial Statements Dividends paid and proposed for the year are disclosed in Note 5 to the financial statements.

DIRECTORS The Directors who held office during the period are:

Datuk Khoo Eng Choo Chairman/Independent Director Augustus Ralph Marshall Executive Director Khoo Teik Chooi Non-Executive Director Tan Poh Ching Non-Executive Director Leong Wai Hoong Independent Director

In accordance with Articles 76 and 77 of the Articles of Association, Augustus Ralph Marshall retires by rotation. Being eligible, he has offered himself for re-election at the forthcoming Annual General Meeting.

DIRECTORS’ INTERESTS The interests of the Directors in the shares of the Company, full details of which are set out in the Company’s Register of Directors’ Interests (which is open to inspection), are disclosed in the Directors’ Remuneration Report.

Share options The Tanjong public limited company Employees’ Share Option Scheme No. 2 (”ESOS”) came into effect on 17 September 1999. Details of Directors’ interests in share options are disclosed in the Directors’ Remuneration Report.

Other interests There were no contracts subsisting during, or at the end of, the year in which any Director is, or was, materially interested which are, or were, significant in relation to the business of the Group except as disclosed in the Directors’ Remuneration Report.

For the year ended 31 January 2004, the Company has purchased and maintained policies of insurance for its Directors and Officers against the financial consequences of actions which may be brought against them by outside parties for their acts or omissions in the course of performance of their duties as Directors or Officers of the Company. TANJONG PUBLIC LIMITED COMPANY 44 Annual Report & Financial Statements 2004

Report of the Directors (continued)

SUBSTANTIAL SHAREHOLDERS The Directors are aware of the following persons (other than the Directors) who, as at 30 April 2004, are directly or indirectly interested in 3 per cent or more of the issued share capital of the Company based on the Register kept Financial Statements pursuant to Section 211 of the United Kingdom Companies Act, 1985:

Direct Indirect Name of Substantial Shareholders No. of % of No. of % of 7.5 pence issued 7.5 pence issued shares held shares shares held shares Usaha Tegas Sdn Bhdi 62,344,000 15.63 62,344,000 15.63 Pacific States Investment Limitedii ––124,688,000 31.26 Excorp Holdings N.V.iii ––124,688,000 31.26 PanOcean Management Limitediv ––124,688,000 31.26 Ananda Krishnan Tatparanandamv ––124,688,000 31.26 Usaha Tegas Resources Sdn Bhdvi ––53,688,000 13.46 Ultimate Corporation Sdn Bhdvi ––30,356,320 7.61 Khoo Teng Binvii 180,000 0.05 30,356,320 7.61 The Capital Group Companies, Inc.viii ––22,278,100 5.59 Capital Group International, Inc.ix ––22,278,100 5.59 Capital International, Inc. 22,189,100 5.56 – – Marlestone Investments Limitedvi ––16,271,016 4.08 Fidelity International Limitedx ––12,969,000 3.25

(i) The interests disclosed include those of its wholly-owned subsidiary, Usaha Tegas Resources Sdn Bhd and are held through nominees. (ii) Deemed interest arises through its direct controlling interest in Usaha Tegas Sdn Bhd. Refer to Note (i) above. (iii) Deemed interest arises through its direct controlling interest in Pacific States Investment Limited. Refer to Note (ii) above. (iv) Excorp Holdings N.V. is in turn owned by PanOcean Management Limited (“PanOcean”). PanOcean is the trustee of a discretionary trust, the beneficiaries of which are members of the family of Ananda Krishnan Tatparanandam and foundations including those for charitable purposes. Although PanOcean is deemed to have an interest in the shares, it does not have any economic or beneficial interest in the shares. Refer to Note (iii) above. (v) Ananda Krishnan Tatparanandam’s deemed interest arises through his deemed interest in Usaha Tegas Sdn Bhd which arises by virtue of trust and related arrangements with PanOcean. Refer to Note (iv) above. Although he is deemed to have an interest, he does not have any economic or beneficial interest in the shares. (vi) The interest is held through a nominee. (vii) Khoo Teng Bin has an indirect interest in 30,356,320 shares which arises from his deemed interest in Ultimate Corporation Sdn Bhd. (viii) This represents the interests of The Capital Group Companies, Inc. which arises by virtue of holdings attributed to its affiliates. (ix) This represents the interests of Capital Group International, Inc. which arises by virtue of holdings attributed to its subsidiaries. (x) This represents the interests of Fidelity International Limited and its direct and indirect subsidiaries.

TAX RESIDENCE STATUS The Company is resident in Malaysia for both Malaysian tax purposes and under the terms of the UK/Malaysian double taxation treaty. Hence, as a non-UK tax resident, the Company is not subject to the Close Companies provisions of the UK Income and Corporation Taxes Act, 1988. TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 45

Report of the Directors (continued)

SUPPLIERS PAYMENT POLICY Statutory regulations under the UK Companies Act, 1985 require a public company to make a statement of its policy and practice on the payment of trade creditors. As an investment holding company, Tanjong plc does not have any trading relationships with suppliers, whereas its operating subsidiaries pay their suppliers in accordance with the Financial Statements relevant contractual and legal obligations, provided that terms and conditions are met by the suppliers.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR PREPARING THE FINANCIAL STATEMENTS The following statement, which should be read in conjunction with the Independent Auditors’ Report set out on pages 51 and 52, is made with a view to distinguishing for shareholders the respective responsibilities of the Directors and of the Auditors in relation to the financial statements.

The Directors are required by the UK Companies Act, 1985 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company and of the Group as at the end of the financial year and of the profit and loss of the Company and of the Group for the financial year.

The Directors consider that, in preparing the financial statements on pages 53 to 103, the Company has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates, and that all accounting standards which they consider to be applicable have been followed.

The Directors have responsibility for ensuring that the Company and the Group keep accounting records which disclose with reasonable accuracy the financial position of the Company and the Group and which enable them to ensure that the financial statements comply with the UK Companies Act, 1985, and in all material respects, the additional disclosure requirements of the approved Accounting Standards in Malaysia.

The Directors have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and of the Group and to prevent and detect fraud and other irregularities.

The Directors, having prepared the financial statements, have requested the Auditors to take whatever steps and undertake whatever inspections they consider to be appropriate for the purpose of enabling them to give their audit report.

AUDITORS The Auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office. A resolution proposing their re-appointment and authorising the Directors to fix their remuneration will be tabled at the Annual General Meeting.

On behalf of the Board,

Datuk Khoo Eng Choo Kuala Lumpur Chairman 30 April 2004 TANJONG PUBLIC LIMITED COMPANY 46 Annual Report & Financial Statements 2004

Directors’ Remuneration Report

INTRODUCTION The Report is designed to comply with requirements stated in the Directors’ Remuneration Report Regulations 2002 in the United Kingdom. The Report covers both Executive and Non-Executive Directors. The first part contains

Financial Statements information that is not subject to audit whilst the second part contains information that has been audited by PricewaterhouseCoopers LLP. The Report has been approved by the Board and signed on its behalf by the Chairman of the Remuneration Committee. This Report is subject to the approval of shareholders at the Annual General Meeting (“AGM”) and is tabled under Agenda item (2) in the Notice of the AGM.

PART A: REMUNERATION FRAMEWORK AND ELEMENTS NOT SUBJECT TO AUDIT REMUNERATION POLICY The Board believes that remuneration levels should be sufficient to attract, retain and incentivise the Directors needed to manage a successful Group. Consistent with this policy, the component parts of the remuneration package are designed to link rewards to individual and corporate performance in the case of Executive Directors. For Non-Executive Directors, the fee levels are intended to be commensurate with the experience and level of responsibilities of the particular Non-Executive Director concerned.

REMUNERATION COMMITTEE The members of the Remuneration Committee during the year were: Leong Wai Hoong (Chairman) Datuk Khoo Eng Choo The Committee has established a policy framework and is responsible for assessing all elements of the remuneration and other terms of employment for Executive Directors, drawing from external advice as necessary. The Remuneration Committee recommends the annual bonus and salary increments of the Executive Directors as well as the benefits-in-kind to be provided. Executive Directors are required to abstain from the deliberations and voting on decisions in respect of their remuneration at Board level. The remuneration of the Non-Executive Directors is a matter that is decided by the Board as a whole with the Director concerned abstaining from deliberations and voting on decisions in respect of his individual remuneration.

ELEMENTS OF REMUNERATION OF EXECUTIVE DIRECTORS All Executive Directors, serving in their capacity as employees of a principal subsidiary, Pan Malaysian Pools Sdn Bhd (“PMP”) were provided with a remuneration package based on the following elements:

Basic salary taking into account the responsibilities of the individuals and salary levels of comparable organisations. Bonus scheme which comprised a two-month contractual entitlement which is pro-rated to the service period. Benefits-in-kind such as handphone, company car and driver, medical and insurance coverage and social club memberships. Expense allowances relating to housing and travelling. Employees Provident Fund contributions which are statutory contributions based on 12% of the relevant emoluments. During the year, two of the Executive Directors, Khoo Teik Chooi and Tan Poh Ching retired from PMP in April 2003 and May 2003 respectively, and thereafter remained on the Board of Tanjong plc as Non-Executive Directors. Effective 1 October 2003, the contract of the remaining Executive Director, Augustus Ralph Marshall, was revised with the following terms of remuneration upon his resignation as an employee of PMP: ELEMENTS OFREMUNERATION OFEXECUTIVEDIRECTORS Directors’ RemunerationReport W appointment. There arenoexpresscontractualtermsprovidingforcompensationintheeventofearlyterminationtheir The salientcontractualtermsareasfollows: NON-EXECUTIVE DIRECTORS’SERVICE CONTRACTS The remunerationstructureisasfollows: ELEMENTS OFREMUNERATION OFNON-EXECUTIVEDIRECTORS appointment. There arenoexpresscontractualtermsprovidingforcompensationintheeventofearlytermination his The salienttermsofAugustusRalphMarshall’s contractareasfollows: EXECUTIVE DIRECTOR’SSERVICE CONTRACT TOTAL SHAREHOLDERRETURN of theCompany, whichrecognisesthe amountasincome. as DirectorsofPowertekBerhad(“Powertek”)amounting toRM18,000(2003:RM36,000)eachwerewaivedinfavour The Directors’feesduetoTan PohChing andAugustusRalphMarshallinrespectoftheperformancetheirduties Return (%) AIVER OFEMOLUMENTS Contractual noticeoftermination3months. Appointment forafixedtermof2years. RM100,000 perannum)andacompanycarforcertainDirectors. Benefits-in-kind suchasmedicalcoverageforDirectorandspouse(subjecttoamaximumreimbursementof Meeting allowancesforeachmeetingday, irrespectiveofthenumbermeetingsperday. Committees. Fees fordutiesasDirectorsandadditionalfeesundertakingresponsibilitiesChairmanormemberofBoard Contractual noticeoftermination3months. Appointed forafixedtermof2years. spouse andsocialclubmemberships. Benefits-in-kind Committee. Discretionary cashincentive Fixed feeandexecutivestipend. 100 10 20 30 40 50 60 70 80 90 0 1999 such asafullymaintainedcompanycar, medicalexpensesfortheExecutiveDirectorandhis 0020 022003 2002 2001 2000 based ontheGroup’s overallperformanceasrecommendedbytheRemuneration Source :Bloomberg 31 January (continued) T ANJONG 86.2% 200 4 42.8% KLSER (continued) Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 47 Financial Statements Financial Statements 48 Annual Report T ANJONG PUBLICLIMITEDCOMPANY en a on 4 5 78 150 – 6 retiredon25July 2002 ++ + – ** – * – Augustus RalphMarshall Executive 144 David Kuok Ooi BoonLeong Leong Wai Hoong TOTAL SHAREHOLDERRETURN DIRECTORS’ DETAILED EMOLUMENTS–INRM’000 7A oftheUKCompaniesAct,1985. 31 January2004.ThenumericalcomponentsofthesedisclosureshavebeenauditedinaccordancewithSchedule The followingpartprovidesdetailsoftheremunerationandshareinterestsallDirectorsforyearended PA previously theKualaLumpurStock T performance oftheCompany. the TSRwillvarywithstockmarketsbutrelativepositionisareflectionofmarketperceptionoverall calculating TSR,theCompany’s dividendisassumedtobereinvestedintheunderlyingshares.Theabsolutesizeof which isdefinedasthegrowthinsharevalueanddeclareddividendincomeduringadeterminedperiod.In The Directors’RemunerationReportRegulations2002requiresadisclosureofTotal ShareholderReturn(“TSR”), Directors’ RemunerationReport au hoEgCo 5 0 6 247 662 – 104 – – – 558 T Khoo Teik Chooi Datuk KhooEngChoo Non-Executive the TSRof42.8%recordedbyKLSER. Over thelast5years,Tanjong plchassignificantlyoutperformedtheKLSERtogiveaTSRof86.2% ascomparedto against relevant index anjong plcisclassifiedundertheTrading/Services SectoroftheBursaMalaysiaSecuritiesBerhad(“BursaMalaysia”, an PohChing RT retired on1April2003 amounting toRM1,090,000for hispastservicestoPMP. HeremainsasanExecutive DirectorofTanjong plc. Augustus RalphMarshallresigned asanemployeeofPMPon30September2003 and wasawardeda services toPMP. were awardedretirementgratuitiesamountingtoRM1,230,000 andRM1,020,000respectivelyfortheirpast Khoo Teik ChooiandTan PohChingretiredasemployeesofPMPonApril2003andMayrespectively

& B: REMUNERATION REVIEW–AUDITED Financial Statements2004 ++ * + * which theTSRofTanjong plcshouldbemeasured. *60 ** esSlre nkn ou loacscontributions allowances bonus in-kind Salaries Fees 0 4 91 4–531,056 523 – 34 15 29 345 100 6–1–3–2 107 20 1,000 – 743 3 67 – 47 1 21 – 17 16 493 98 ––– – –– Exchange). The (continued) 4 16 49 5 888 956 93 64 61 31 647 eeis nulEpnesauoyTotal statutory Expense Annual Benefits- (continued) Kuala LumpurSer 2004 vice Index(“KLSER”)isthereforethemost –––54 Employer’s ,5 3,430 3,054 gratuity T 2003 otal o onLog50(0)– – (500) – – (20,000) 500 20,000 (10,000) (125,000) 125,000 10,000 Ooi BoonLeong T Khoo Teik Chooi Augustus RalphMarshall In thesubsidiary, Powertek Leong Wai Hoong hoTi ho b 03630300030,676,320 520,000 300,000 500,000 30,376,320 20,000 (b) (a) Ooi BoonLeong T Khoo Teik Chooi Augustus RalphMarshall The Company hoTi ho .55000(0,0)200,000 Nil (300,000) 500,000 (500,000) 8.05 500,000 8.05 Khoo Teik Chooi Augustus RalphMarshall on theRegisterofDirectors’InterestsinsharesCompanywere: based The interestsoftheDirectorsinsharesCompanyandasubsidiarycompany(bothdirectindirect) INTERESTS INSHARES Directors havenotbeenvariedduringtheyear. or otherGroupentitiesduringtheyear. ThetermsandconditionsoftheshareoptionsgrantedtoExecutive None oftheotherDirectorshasbeengrantedoptionstosubscribeforsharesinsharecapitalCompany prices duringtheyearwasbetweenRM8.40andRM11.70. The marketpriceoftheCompany’s sharesattheendoffinancialyearwasRM11.00andrangemarket of theESOSon17September2004. approval bytheBoardofDirectorsforanextensionperiodexercisabilitytheiroptionsuptoexpiry Khoo Teik ChooiandTan PohChingwhoceasedtobeExecutiveDirectorsduring thefinancialyearhavebeengiven days immediatelyprecedingtheoffer. RM8.05 persharewasbasedontheaverageofmeanmarketquotationCompany’s shareforfivemarket levels asprovidedundertheCompany’s ESOSwhichhasbeenapprovedbytheshareholders.TheOptionPriceof The optionsgrantedtotheExecutiveDirectorsinOctober1999arerespectoftheireligibilityandresponsibility T Details ofoptionsheldbyDirectorsaresetoutbelow: EMPLOYEES’ SHAREOPTIONSCHEME(“ESOS”) Directors’ RemunerationReport nPhCig2000(5,0)– (250,000) 250,000 an PohChing nPhCig2,0 5,0 170,000 150,000 20,000 an PohChing nPhCig80 0,0 1000 350,000 (150,000) 500,000 8.05 an PohChing – sharesof7.5penceeach (retired on1April2003) – sharesofRM1each (continued) (c) pinpieBlnea xrie Balanceat Exercised Balanceat Option price e hr eraydrn 31January during 1February per share eray20 31January2004 1 February2003 R)20 h er2004 2003the year (RM) ,9,0 / n/a n/a 3,897,701 sa oeet Asat Movements As at Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 49 Financial Statements Financial Statements 50 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Chairman oftheRemunerationCommittee Leong Wai Hoong On behalfoftheBoard, of aprincipalsubsidiary, PMP. were awardedtoKhooTeik Chooi,Tan PohChingandAugustusRalphMarshall fortheirpastservicesasemployees The CompanyhasnopensionschemesfortheDirectors.Howeverduringyearunderreview, one-off gratuities PENSIONS ANDGRATUITIES in theCompany. There arenolong-termincentiveschemesotherthantheoptionsgrantedunderESOStosubscribeforshares LONG-TERM INCENTIVESCHEME Other thanasstatedabove,noneoftheDirectorshasanyinterestsinsharesCompanyoritssubsidiaries. TheDirectorssoldtheirsharesinPowertekpursuanttotheGeneralOffer fortheacquisitionofremaining (c) b KhooTeik Chooihasadirectinterestasto (b) These (a) INTERESTS INSHARES Directors’ RemunerationReport ordinary sharesinPowertekasmentionedNote26tothefinancialstatements. (2003: 30,356,320)shareswhicharisesfromhisdeemedinterestinUltimateCorporationSdnBhd. & Financial Statements2004 520,000 (2003: 20,000)sharesareheldthroughanominee. (continued) 320,000 (continued) (2003: 20,000)sharesandanindirectinterestasto 30 April2004 30,356,320 TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 51

Independent Auditors’ Report To The Members Of Tanjong public limited company

We have audited the financial statements which comprise the profit and loss account, the balance sheet, the cash flow statement, the statement of total recognised gains and losses and the related notes which have been prepared under the historical cost convention (modified for the revaluation of investment property) and the accounting Financial Statements policies set out in the statement of accounting policies. We have also audited the disclosures required by Part 3 of Schedule 7A to the UK Companies Act, 1985 contained in the directors’ remuneration report (“the auditable part”).

Respective responsibilities of directors and auditors The directors’ responsibilities for preparing the annual report and the financial statements in accordance with applicable United Kingdom law and accounting standards are set out in the statement of directors’ responsibilities. The directors are also responsible for preparing the directors’ remuneration report.

Our responsibility is to audit the financial statements and the auditable part of the directors’ remuneration report in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards issued by the Auditing Practices Board. This report, including the opinion, has been prepared for and only for the Company’s members as a body in accordance with Section 235 of the UK Companies Act, 1985 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or in to whose hands it may come save where expressly agreed by our prior consent in writing.

We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and the auditable part of the directors’ remuneration report have been properly prepared in accordance with the UK Companies Act, 1985. We also report to you if, in our opinion, the directors’ report is not consistent with the financial statements, if the Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and transactions is not disclosed.

We read the other information contained in the annual report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. The other information comprises only the directors’ report, the unaudited part of the directors’ remuneration report, the Chairman’s statement and the business review. Financial Statements 52 Annual Report T ANJONG PUBLICLIMITEDCOMPANY We Basis ofauditopinion To Independent Auditors’Report London Chartered AccountantsandRegisteredAuditors PricewaterhouseCoopers LLP We accounting policiesareappropriatetotheCompany’s circumstances,consistentlyappliedandadequatelydisclosed. estimates andjudgementsmadebythedirectorsinpreparationoffinancialstatements,whether and theauditablepartofdirectors’remunerationreport.Italsoincludesanassessmentsignificant includes examination,onatestbasis,ofevidencerelevanttotheamountsanddisclosuresinfinancialstatements In ouropinion: Opinion presentation ofinformationinthefinancialstatements. by fraudorotherirregularityerror. Informingouropinionwealsoevaluatedtheoveralladequacyof and theauditablepartofdirectors’remunerationreportarefreefrommaterialmisstatement,whethercaused necessary inordertoprovideuswithsufficient evidencetogivereasonableassurancethatthefinancialstatements

1985 havebeenproperlypreparedinaccordancewiththeUKCompaniesAct,1985. those partsofthedirectors’remunerationreportrequiredbyPart3Schedule7AtoUKCompaniesAct, the financialstatementshavebeenproperlypreparedinaccordancewithUKCompaniesAct,1985;and 31 January2004andoftheprofitcashflowsCompanyGroupforyearthenended; the financialstatementsgiveatrueandfairviewofstateaffairs oftheCompanyandGroupasat The MembersOfTanjong publiclimitedcompany

planned andperformedourauditsoastoobtainalltheinformationexplanationswhichweconsidered conducted ourauditinaccordancewithauditingstandardsissuedbytheAuditingPracticesBoard.An & Financial Statements2004 (continued) 30 April2004 ANNSPRSAE6 5 EARNINGS PERSHARE RETAINED PROFITFORTHEFINANCIALYEAR DIVIDENDS PROFIT FORTHEFINANCIALYEAR MINORITY INTERESTS 3 PROFIT ONORDINARY ACTIVITIESAFTERTAXATION T PROFIT ONORDINARY ACTIVITIESBEFORETAXATION NET INTERESTEXPENSEANDINVESTMENTINCOME OPERATING PROFIT: GROUPANDSHAREOFJOINTVENTURE The Noteson pages 61to103formpartof thesefinancialstatements. For theyearended31 January2004 Group ProfitandLossAccount UNVR(nldn hr fjitvnue 1 TURNOVER (includingshareofjointventure) RU UNVR–Cniun prtos1 GROUP TURNOVER–Continuingoperations Less: Shareofjointventure’s turnover PRTN OT 2 SHARE OFOPERATING RESULTS IN: GROUP OPERATING PROFIT–Continuingoperations OPERATING COSTS XTO 4 AXATION – –D N SOIT 1 AND ASSOCIATE Associate Joint Venture Basic iluted oeRM’000 Note (2,017,517) 2,717,602 2,677,171 103.7 sen 103.9 sen (205,588) (173,415) 663,190 199,893 405,481 414,546 587,961 659,654 Annual Report (75,229) (40,431) (9,065) 3,558 2004 T ANJONG PUBLICLIMITEDCOMPANY (22) & Financial Statements2004 (1,893,872) 2,487,177 2,455,522 (117,482) (159,052) 83.4 sen 83.8 sen 565,583 205,637 323,119 362,316 521,368 561,650 RM’000 (44,215) (39,197) (31,655) 3,664 2003 269 53 Financial Statements Financial Statements 54 Annual Report T ANJONG PUBLICLIMITEDCOMPANY To Surplus onrevaluationofinvestmentproperty The Noteson pages 61to103formpartof thesefinancialstatements. and aftertaxationfortheyearsended31January20042003. There arenodifferences betweenthereportedprofitsandhistoricalcostonordinaryactivitiesbefore For theyearended31January2004 NOTE OFHISTORICALCOSTPROFITSANDLOSSES For theyearended31 January2004 Statement ofGroup’sTotal RecognisedGainsandLosses Exchange differences onforeigncurrencynetinvestments Profit forthefinancialyear tal recognisedgainsandlossesfortheyear & Financial Statements2004 473,674 405,481 RM’000 72,000 (3,807) 2004 321,893 323,119 RM’000 (1,226) 2003 – IIED 5 RETAINED PROFITCARRIEDFORWARD DIVIDENDS T OPERATING PROFIT UNVR1 2 RETAINED PROFITBROUGHTFORWARD PROFIT FORTHEFINANCIALYEAR OPERATING COSTS–Continuingoperations TURNOVER The Noteson pages 61to103formpartof thesefinancialstatements. For theyearended31 January2004 Company ProfitandLossAccount XTO 4 AXATION oeRM’000 Note 1,066,037 1,153,492 (205,588) 162,401 118,133 165,635 Annual Report (44,268) (3,234) 2004 T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 1,153,492 1,117,736 (117,482) 212,622 153,238 214,072 RM’000 (59,384) (1,450) 2003 55 Financial Statements Financial Statements 56 Annual Report T ANJONG PUBLICLIMITEDCOMPANY e agbeAst e hr i e)27d Net Tangible Assetspershare(insen) IOIYITRSS112,854 2,166,613 MINORITY INTERESTS EQUITY SHAREHOLDERS’FUNDS E URN SES1,022,768 4,289,435 CAPITAL ANDRESERVES CREDITORS (amountsfallingdueaftermore thanoneyear) TOTAL ASSETSLESSCURRENTLIABILITIES NET CURRENTASSETS CREDITORS (amountsfallingduewithinoneyear) NET ASSETS PROVISION FORLIABILITIESANDCHARGES CURRENT ASSETS FIXED ASSETS The Noteson pages 61to103formpartof thesefinancialstatements. As at31 January2004 Group BalanceSheet Profit andlossaccount Revaluation reserve Share premiumaccount adu hr aia 20 Paid upsharecapital netet 14 Cash atbankandinhand Investments etr 13 Debtors tcs12 Stocks soit 10 11 Long terminvestments Associate on etr 10 Joint venture netetpoet 9 7 Investment property T Intangible assets nil ses8 angible assets Share ofgrossliabilities Share ofgrossassets & Financial Statements2004 oeRM’000 Note 16 15 19 1 (1,734,155) 2,279,467 1,764,306 2,279,467 1,559,764 1,111,753 3,266,667 2,694,302 (536,996) (275,813) 178,040 142,352 312,437 119,726 470,000 81,915 15,848 41,384 42,035 52,906 533.7 5,605 2,470 2004 (651) 2,091,438 1,825,970 1,568,220 2,091,438 3,275,935 1,042,785 3,012,997 2,553,804 (779,847) (200,108) (984,389) 265,468 109,733 138,102 262,938 708,190 205,908 114,889 365,000 RM’000 13,798 28,682 30,396 56,682 (1,714) 456.9 9,915 6,356 2,473 2003 Chairman Datuk KhooEngChoo 1,386,429 Approved bytheBoardon30April2004. The Notesonpages61to103formpartofthesefinancial statements. EQUITY SHAREHOLDERS’FUNDS CAPITAL ANDRESERVES E URN SES179,613 NET ASSETS NET CURRENTASSETS CREDITORS (amountsfallingduewithinoneyear) CURRENT ASSETS FIXED ASSETS As at31 January2004 Company BalanceSheet rftadls con 21 Profit andlossaccount Share premiumaccount adu hr aia 20 Paid upsharecapital Cash atbankandinhand etr 13 14 Investments Debtors netet 10 Investments oeRM’000 Note 15 1,066,037 1,386,429 1,206,816 (149,043) 178,040 142,352 328,656 256,730 Annual Report 70,894 1,032 2004 T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 1,401,327 1,153,492 1,401,327 1,054,406 109,733 138,102 425,838 346,564 346,921 RM’000 (78,917) 78,967 2003 307 57 Financial Statements Financial Statements 58 Annual Report T ANJONG PUBLICLIMITEDCOMPANY The Noteson pages 61to103formpartof thesefinancialstatements. As at31 January2004 Shareholders’ FundsandReserves Reconciliation ofMovementsin iied (205,588) – (117,482) (117,482) 118,133 – – – 153,238 153,238 – – – – (205,588) – – – – Share capitalrepresentsissued andfullypaidupshareswithanominalvalueof7.5 penceeach. At 31January2004 405,481 – Issue ofsharesarisingfrom – (117,482) – Dividends (117,482) Profit forthefinancialyear At 31January2003 – – – Issue ofsharesarisingfrom 323,119 Dividends Profit forthefinancialyear 323,119 At 1February2002 – COMPANY – – At 31January2004 – Issue ofsharesarisingfrom – Dividends Profit forthefinancialyear Surplus onrevaluationof – Exchange differences onforeign At 31January2003 Issue ofsharesarisingfrom Dividends Profit forthefinancialyear Exchange differences onforeign At 1February2002 GROUP xrieo hr pin ,5 837–– 46,255 – – 68,307 – 4,250 44,186 – – 2,069 exercise ofshareoptions (3,807) – 72,000 – 46,255 – exercise ofshareoptions 68,307 – (1,226) – (1,226) 4,250 – – – – exercise ofshareoptions 44,186 – investment property 2,069 currency netinvestments – exercise ofshareoptions currency netinvestments & Financial Statements2004 hr aia con eev osacutTotal lossaccount reserve account share capital 4,5 7,4 1,066,037 – 1,401,327 1,153,492 178,040 – 1,319,316 142,352 1,117,736 109,733 – 138,102 1,764,306 65,547 81,915 136,033 178,040 142,352 1,825,970 1,568,220 9,915 109,733 1,575,304 1,363,809 138,102 9,915 65,547 136,033 adu hr rmu eauto Profit and Revaluation Share premium Paid up M00R’0 M00R’0 RM’000 RM’000 RM’000 RM’000 RM’000 o-itiual Distributable Non-distributable 1,386,429 2,166,613 (205,588) (205,588) 118,133 405,481 72,557 72,557 72,000 (3,807) custosaddsoas25b 25b 25a Cash outflowbeforeuseofliquidresources 25b Equity dividendspaid Acquisitions anddisposals Capital expenditure Malaysian andothertaxespaid Returns oninvestmentsandservicingoffinance Cash flowfromoperatingactivities e eta n fya 25c 25b Net debtatendofyear Net debtatbeginningofyear Movements innet(debt)/fundstheyear 25b Other non-cashchanges Movements indebt Movements inmarketablesecuritiesandshorttermdeposits Increase/(decrease) incashtheyear RECONCILIATION OFNETCASHFLOWTOMOVEMENTS Increase/(decrease) incashtheyear Financing Management ofliquidresources The Noteson pages 61to103formpartof thesefinancialstatements. For theyearended31 January2004 Group CashFlowStatement and financing IN NETDEBT oeRM’000 Note (141,080) (562,278) (145,843) (680,639) (618,620) (467,280) (392,295) 743,146 397,714 540,188 Annual Report (16,870) (95,340) (73,421) (62,019) 5,497 2,050 2,050 2004 T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 (400,808) (106,376) (618,620) (639,254) (193,785) (214,125) 661,416 216,939 241,269 RM’000 (99,832) (14,479) (68,316) (28,395) 20,634 (1,269) (1,251) (1,251) 2003 59 Financial Statements Financial Statements 60 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Other non-cashchanges Movements inmarketablesecuritiesandshorttermdeposits e ud tedo er25c Net fundsatendofyear Net fundsatbeginningofyear Movements innetfundstheyear Increase incashtheyear RECONCILIATION OFNETCASHFLOWTOMOVEMENTS iacn 25b 25b Increase incashtheyear Financing Management ofliquidresources 25b Cash (outflow)/inflowbeforeuseof Equity dividendspaid Malaysian andothertaxespaid Returns oninvestmentsandservicingoffinance ahfo rmoeaigatvte 25a Cash flowfromoperatingactivities The Noteson pages 61to103formpartof thesefinancialstatements. For theyearended31 January2004 Company CashFlowStatement IN NETFUNDS liquid resourcesandfinancing & Financial Statements2004 oeRM’000 Note (141,080) 257,762 346,871 130,061 (89,837) (89,109) (80,912) (14,439) 96,076 (2,526) 2004 (894) 725 725 3 346,871 313,800 170,741 RM’000 (30,478) (99,832) (35,895) 33,098 33,071 66,382 (1,536) (2,991) 2003 (36) 9 9 B A SIGNIFICANT ACCOUNTINGPOLICIES The accountingpoliciesadoptedbytheCompanyaresetoutbelowandconsistentwithpreviousyear. increased insightintotheperformanceofbusinessfromadifferent accountingperspective. performance toothercompanieslistedintheBursaMalaysiaaswellfurnishadditionaldatathatwillgive an jurisdictions. ThisinformationhasbeenprovidedinordertoenablethereadercompareTanjong’s financial jurisdictions ispresentedinthesaidnotetogetherwithaglossaryoftermstofacilitatecomparisonsbetweenthese financial effects ofthedifferences arisingfromtheapplicationofdifferent accountingpoliciesinthetwo disclosures ondifferences betweenUnitedKingdomandMalaysianaccountingrequirements”.Asummaryofthe the extentpossible.Whereitisimpracticaltodoso,theseitemsareseparatelydisclosedunderNote27-“Additional Disclosure itemsrelatingtoMalaysianaccountingrequirementshavebeenintegratedintotherespectivenotes applicable inMalaysia(“Malaysianaccountingrequirements”). in theUnitedKingdom(“UKGAAP”)whichdiffer incertainrespectsfromtheapprovedAccountingStandards investment property)inaccordancewiththeUKCompaniesAct,1985andaccountingpracticegenerallyaccepted The financialstatementshavebeenpreparedunderthehistoricalcostconvention(modifiedforrevaluationof Main BoardoftheBursaMalaysiaandasecondarylistingonLondonStockExchangeplc. The Companyisapubliclimitedcompany, incorporatedanddomiciledinEngland.Ithasaprimarylistingonthe BASIS OFPREPARATION 31 Significant Accounting Policies

January 2004 companies to ensure consistencyofaccounting policieswiththeGroup. the equitymethodofaccounting, adjustmentshavebeenmadetothefinancial statementsofassociated been eliminatedtotheextent oftheGroup’s interestintheassociatedcompanies.Where necessary, inapplying Unrealised surplusesanddeficits ontransactionsbetweenGroupcompaniesand associatedcompanieshave the balancesheetatanamount thatreflectsitsshareofthenetassetsassociated companies. results ofassociatedcompanies fortheperiod.TheGroup’s investmentsinassociatedcompanies arecarriedin The equitymethodofaccountinginvolvesrecognising in theprofitandlossaccount,Group’s shareofthe policies. AssociatesareaccountedforintheGroup’s financial statements usingtheequitymethod. exercises significantinfluenceovertheiroperatingand financialpoliciesbutdoesnothavecontroloverthose Associates areundertakingsinwhichtheGrouphasa long termparticipatinginterestandwheretheGroup statements usingthegrossequitymethod. controlled bytheGroupandoneormoreotherparties. Joint venturesareaccountedforintheGroup’s financial Joint venturesareundertakingsinwhichtheGroupholds aninterestonalongtermbasisandwhicharejointly Joint venture andassociate to theprofitandlossaccountinyearofdisposal. off toreserves isnotreinstatedunlessthereasubsequentdisposalofthebusiness,inwhichcaseitcharged life ofthebusinessacquiredfromdateacquisition.Goodwillarisingonconsolidationpreviouslywritten goodwill iscapitalisedandamortisedthroughtheprofitlossaccountoverestimatedeconomicuseful subsidiary companiesandthefairvalueofattributablenetassetsacquiredatdateacquisition.Any Goodwill arisingonconsolidationrepresentsthedifference betweentheconsiderationpaidforsharesin date ofacquisitionoruptothesale. The tradingresultsofbusinessesacquiredorsoldareincludedintheprofitandlossaccountfromeffective January. the financialstatementsofwhichhavebeenmadeupto31 The GroupfinancialstatementsincludetheofCompanyanditssubsidiarycompanies, Basis ofconsolidation Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 61 Financial Statements Financial Statements 62 Annual Report T ANJONG PUBLICLIMITEDCOMPANY DT C SIGNIFICANT ACCOUNTINGPOLICIES 31 Significant Accounting Policies

January 2004 ulig %–5% – 2% 33% 1% – 3% approximately 6years. 33% – generation assets.Theyare subsequently depreciatedonastraightlinebasisovertheir estimatedusefullivesof 9% Asset replacementcostsincurred formajorscheduledoverhaulsofpowerplantsare capitalisedaspartofpower recoverable amount. Where anindicationofimpairment exists,thecarryingvalueofassetisassessed andwrittendowntoits V Fixtures, fittingsandequipment Plant andmachinery Buildings Long leaseholdland freehold land,onastraight-linebasisovertheirexpected usefuleconomiclives.Theratesappliedareasfollows: Depreciation isprovidedtowriteoff thecostlessestimatedresidual values,ofalltangiblefixedassets,except estimated usefullives. use, therelevantfinancecostswillnolongerbecapitalised andthecostofassetswillbedepreciatedovertheir costs incurredinpreparingtheseassetsfortheirintendeduse.Whenareready Assets underconstructioncompriseturnkeycontractor’s payments,financecostsandanyotherdirectlyattributable depreciation andimpairmentlosses. All tangiblefixedassetsincludingland,buildings,plantandmachineryarestatedatcostlessaccumulated 1 EURO 1 ChineseRenminbi 1 PoundSterling 1 AustralianDollar 1 USDollar The principalclosingratesusedinthetranslationofforeigncurrencyamountstoRMareasfollows: are dealtwiththroughtheprofitandlossaccount. subsidiary companiesaretranslatedataverageexchangeratesfortheperiod.Allotherdifferences foreign subsidiaryandassociatedcompaniesaredealtwiththroughreserves.Profitlossaccountof balance sheetdate.Exchangedifferences resultingfromthetranslationatclosingratesofnetinvestmentsin Assets andliabilitiesofforeignsubsidiarycompaniesaretranslatedintoRMatratesexchangerulingthe forward contracts. liabilities thatarehedgedbyforeigncurrencyforwardcontracts,recognisedattheratesspecifiedinsuch currencies aretranslatedatratesofexchangerulingthebalancesheetdate.Alltransactions,assetsand exchange ratesprevailingatthetransactiondatesandmonetaryassetsliabilitiesdenominatedinforeign Unless hedgedbyforeigncurrencyforwardcontracts,transactionsareaccountedforat of theGroup. The consolidatedfinancialstatementsarepreparedinRinggitMalaysia(“RM”)asthisisthefunctionalcurrency Foreign currencies angible fixedassets hce n ietc 20% ehicles andlivestock & Financial Statements2004 4.7415 0.4591 6.9303 2.9038 3.8000 2004 (continued) 4.1151 0.4591 6.2055 2.2548 3.8000 2003 (continued) I H GS F E SIGNIFICANT ACCOUNTINGPOLICIES 31 Significant Accounting Policies

January 2004 expense inthe periodinwhichthediminution isidentified. investment maynotberecoverable. Permanentdiminutioninthevalueofaninvestment isrecognisedasan investment iscarriedoutif eventsorchangesincircumstancesindicatethatthe carryingamountofthe investments areshownatcost lessprovisionsforimpairment.Areviewthe potential impairmentofan Investments insubsidiarycompanies, associatedcompanies,jointlycontrolledentities andothernon-current Investments outstanding amountsattheperiodend.Baddebtsare written off intheperiodwhichtheyareidentified. T Debtors completion andsellingexpenses. Net realisablevalueistheestimateofsellingprice intheordinarycourseofbusiness,lesscosts distillate fuel,sparesandconsumablesaredetermined on afirst-in-first-outbasis. the specificidentificationmethodandincludesanappropriate proportionofoverheads.LPGfinishedproducts, Stocks arestatedatthelowerofcostandnetrealisablevalue.Thetradinglivestockisdeterminedusing been showncannotreasonablybeseparatelyidentifiedorquantified. is onlyoneofthemanyfactorsreflectedinannualvaluationandamountwhichmightotherwisehave the Directorsconsiderthatsystematicannualdepreciationwouldbeinappropriate.Thisisbecause necessary topresentatrueandfairview. Astheinvestmentpropertyisheldforandnotconsumption, Act, 1985requiresfixedassetstobedepreciated,adeparturefromthisrequirementispermittedif Properties”, nodepreciationisprovidedinrespectoffreeholdinvestmentproperty. Although theUKCompanies In accordancewiththeStatementofStandardAccountingPractice19(“SSAP19”),“AccountingforInvestment the profitandlossaccount. increases ofthesameassetarechargedagainstsaidrevaluationreserve,allotherdecreasesto investment propertyarecreditedtotherevaluationreserve.Decreasesthatoffset previous investment propertyrevaluationreserveasexplainedinNote9.Increasesthecarryingamountof the investmentpropertywascarriedduringfinancialyearandresultingsurplushasbeencreditedto and iscarriedoutbyexternalindependentvaluersonceeveryfiveyears.Themostrecentvaluationof its openmarketvalueatthebalancesheetdate.Thevaluationofpropertyisperformedinternallyeveryyear potential, anyrentalincomebeingatmarketrates.Theinvestmentpropertyisstatedavaluationbasedon Investment propertyrepresentsaninterestinlandandabuildingwhichisheldforitslongterminvestment Investment property immediately toitsrecoverableamount. Where anindicationofimpairmentexists,thecarryingamountintangibleassetsisassessedandwrittendown Land userightsandjettyarestatedatcosthavebeenfullyimpaired. losses andamortisedovertheirestimatedeconomiclivesof20years. Premiums paidfortherightstooperateabusinessarestatedatcostadjustedanypre-acquisitionprofitsor Intangible assets rade debtorsarecarriedatinvoicedamountslessprovision fordoubtfuldebtsbasedonareviewofall tocks (continued) (continued) Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 63 Financial Statements Financial Statements 64 Annual Report T ANJONG PUBLICLIMITEDCOMPANY IInvSIGNIFICANT ACCOUNTINGPOLICIES 31 Significant Accounting Policies K J

January 2004 transaction. the forwardcontractisrecognisedinfinancialstatements inthesameperiodasunderlyinghedged exchange differences relatingtosuchcontractsarenotrecognised atbalancesheetdate.Therealisedvalueof in exchangeratesbyestablishingtherateatwhichaforeign currencyassetorliabilitywillbesettled.Unrealised The Groupisapartytoforeigncurrencyforwardcontracts whichareenteredintotoprotectitfrommovements Financial instrumentsnotrecognisedinthebalancesheet Reporting Standard(“FRS”)13“FinancialInstruments”. of financialinstrumentshavebeenexcludedfromallthefollowingdisclosuresaspermittedunderFinancial Short termdebtorsandcreditorsotherthanthoseexposedtocurrencyfluctuations,thatfallwithinthedefinition in theindividualpolicystatementsassociatedwitheachitem. The particularrecognitionmethodadoptedforfinancialinstrumentsrecognisedinthebalancesheetisdisclosed arise directlyfromitsoperations. long terminvestments,bankloans,otherborrowingsanditemssuchastradedebtorscreditorsthat The Group’s financialinstrumentswhicharerecognisedinthebalancesheetcomprisecash,otherliquidresources, Financial instrumentsrecognisedinthebalancesheet Financial instruments convertible toknownamountsofcash. Cash andcashequivalentscompriseinhand,bankbalancesshorttermdemanddepositsthatarereadily Cash andcashequivalents Long terminvestmentsarestatedatthelowerofcostandnetrealisablevalue. charged orcreditedtotheprofitandlossaccount. On disposalofaninvestment,thedifference betweenthenetdisposalproceedsanditscarryingamountis management ofliquidresourcesinthecashflowstatement. charged totheprofitandlossaccount.Movementsinsuchinvestmentsarereportedunderheadingof the closeofbusinessonbalancesheetdate.Decreasesincarryingamountmarketablesecuritiesare on aweightedaveragebasis.Marketvalueiscalculatedbyreferencetostockexchangequotedsellingpricesat carried atthelowerofcostandmarketvalue,determinedonanindividualinvestmentbasis.Costiscomputed Current assetinvestmentsincludemarketablesecuritiesandshorttermdeposits.Marketableare & estments (continued) Financial Statements2004 (continued) (continued) N MT L K SIGNIFICANT ACCOUNTINGPOLICIES 31 Significant Accounting Policies

January 2004 recognised intheprofitandlossaccountusingeffective yieldmethod overtheperiodofborrowings. net ofdiscount.Anydifference betweentheproceedsfromPrivate DebtSecuritiesandtheirredemptionvalueis Borrowings arerecognisedbasedonproceedsreceived,and wheretheyrelatetoPrivateDebtSecurities,arestated Borrowings recognised onanaccrualbasis. i from subsidiariesarerecogniseduponproposalbytherespective subsidiaries.Interestandinvestment Tu within theGroup. recognised uponthedeliveryofproductsorperformanceservicesnetdiscountsaftereliminatingsales power plants,incomefromlettingoftheinvestmentpropertyandsaleliquefiedpetroleumgas.Turnover is games, shareofnetsurplusesfromtheRacingTotalisator business,capacitychargesandenergy billingsfrom Tu tax liabilitiesarenotdiscounted. recognised whererecoveryisanticipatedortimingdifferences willreverseintheforeseeablefuture.Deferred depreciation inrespectofacceleratedcapitalallowancesandothertimingdifferences. Deferredtaxassetsare Deferred taxationisprovidedinfullonthedifference betweentheaccountingtreatmentandtaxfor Deferred taxation Thefairvalueoflongtermcreditorsandloansborrowingswithfixedinterestrateswasderived from (v) Thebookvalueofloanswithfloatingratesapproximatestofairintrinsically. (iv) Thefairvalueoflongterminvestmentsisacombinationquoted market pricewheretheunderlying (iii) (ii) Thebook valuesofcash,depositsandcommercialpapersapproximatetheirfairduetoshort (i) In estimatingfairvaluesoffinancialinstruments,thefollowingassumptionsandbaseswereapplied: Fair valueestimationfordisclosurepurposes Financial instruments(continued) urnover rnover fortheCompanyconsistsofdividendsfromsubsidiaries,interestandinvestmentincome. rnover fortheGrouprepresentsgrossvalueofreceiptscompletedNumbersForecastTotalisator instruments atthereportingdate. the netpresentvalueoffuturecashflowsarisingbasedonprevailingmarketinterestratesforsimilar investments arequoted,andeithercostorvaluationwheretheunderlyingnotquoted. The fairvalueofcurrentassetinvestmentshasbeencalculatedusingquotedmarketpricesatthereportingdate. maturity. (continued) (continued) Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 Dividends ncome is 65 Financial Statements Financial Statements 66 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .SEGMENTAL REPORTING 1. 31 Notes totheFinancialStatements

January 2004 soit 2)2,470 (22) 41,384 – 3,558 40,431 T Associate Joint venture emn oas2658368331,237,654 668,363 2,685,873 Non-segmental netassets Non-segmental netoperatingexpenditure Inter-segment elimination Segment totals LPG People’s RepublicofChina The Grouphasthefollowingprincipalbusinesssegments: Property Investment RTO NFO Power Generation Malaysia 2004 reporting formatinNote1and27(b)(ii)addressesboththeseperspectives. As thegeographicalandbusinessorigindestinationforeachofabovesegmentsaresame, companies onanegotiatedbasis. based intheFederalRepublicofGermany. Inter-segment salesprimarilycomprisepropertyrentalstoGroup except fortheLPGbusinesswhichisbasedinPeople’s RepublicofChinaandtheresortventurewhichis ownership andoperationofaresort.AlltheaforementionedbusinesssegmentsarelocatedinMalaysia Other operationsoftheGroupincludeajointventureinfilmexhibitionbusinessanddevelopment, tl2776263102,279,467 663,190 2,717,602 otal & Liquefied PetroleumGas–importation,bottling,saleanddistribution(“LPG”) Property Investment Racing Totalisator business(“RTO”) Numbers ForecastTotalisator business(“NFO”) Power Generation Financial Statements2004 ,7,7 5,5 2,235,613 659,654 2,677,171 ,4,5 7,7 1,233,051 670,476 2,642,657 ,5,5 8,1 (35,745) 922,323 180,512 465,104 1,555,654 1,018,966 Tu M00R’0 RM’000 RM’000 RM’000 r 326(,1)4,603 (2,113) 43,216 7903,4 306,861 39,612 32,542 (7,682) 47,920 20,117 872 – – (8,702) oe rft(os (liabilities) profit/(loss) nover –– – prtn Netassets/ Operating 879 – (8,709) 997,959 .SEGMENTAL REPORTING 1. 31 Notes totheFinancialStatements

January 2004 Interest andinvestmentincome o-emna e ses––660,737 2,435 – – (1,698) – – 43,002 (11,118) – Dividends fromsubsidiaries 195,239 201,283 (4,053) (8,557) 29,004 1,157,368 Tu 1,421,526 – and dividendspayable. 339,314 45,760 Non-segmental netassetsincludecurrentassetandlongterminvestments,interest-bearingassets,interestaccruals T 932,849 Associate Joint venture Non-segmental netassets Non-segmental netoperatingexpenditure Inter-segment elimination Segment totals LPG People’s RepublicofChina Property Investment RT NFO Power Generation Malaysia 2003 otal r O nover oftheCompanyconsistsof: (continued) (continued) ,8,7 6,8 2,091,438 565,583 2,060,283 2,487,177 561,650 1,399,546 2,455,522 565,703 1,397,111 2,464,079 567,401 2,421,077 Tu M00R’0 RM’000 RM’000 RM’000 r 16536428,682 3,664 31,655 55,622 (2,200) 20,942 oe rft(os (liabilities) profit/(loss) nover – prtn Netassets/ Operating Annual Report 165,635 160,000 RM’000 6 2,473 269 T ANJONG PUBLICLIMITEDCOMPANY 5,635 2004 Company & Financial Statements2004 214,072 204,800 RM’000 9,272 2003 67 Financial Statements Financial Statements 68 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .OPERATING COSTS–Continuingoperations 2. 31 Notes totheFinancialStatements

January 2004 b Provision forimpairmentof tangible assets (b) Other operating(income)/expenses (a) Operating costsarearrivedat rvso o necmayavne 2c Provision forintercompanyadvances rvso o mareto agbeast 2b Provision forimpairmentoftangibleassets te prtn icm)epne 2a Other operating(income)/expenses Administrative expenses Distribution costs Cost ofsales & – te tf ot 2e Other staff costs – Directors ofTanjong plc Rent oflandandbuildings Amortisation ofintangibleassets Depreciation ontangibleassets Other feestofirmsofworldwide Group statutoryauditfeesto after chargingthefollowingitems: Financial Statements2004 Other emoluments rtiis2d Gratuities – – – – organisation ofPricewaterhouseCoopers Other auditors – – PricewaterhouseCoopers been reduced. the People’s RepublicofChina.The netbookvalueoftangibleassetsasreflectedinNote 8 hasaccordingly following areviewofthecarrying valueoftheunderlyingfixedassetsrelatingto LPGinvestmentsin An impairmentprovisionof during thecommissioningofPanglimaPowerSdnBhd’s (“Panglima”) powerplant(2003:Nil). This includestherecoveryoflossrevenueamountingto others tax complianceservices further assuranceservices audit-related regulatoryreporting firms ofworldwideorganisation United Kingdom RM169,000 oeRM’000 Note (2003: RM112,000)hasbeen madeinthecurrentfinancialyear (continued) 2,017,517 1,882,414 178,533 107,181 38,494 34,163 (6,410) 3,054 1,090 1,583 3,776 2004 RM26,597,000 454 203 169 37 22 97 71 – – ru Company Group 1,893,872 1,751,569 127,350 RM’000 35,815 93,034 15,364 33,793 arising fromplantoutagesexperienced 3,430 2,250 2,021 3,775 2003 122 408 202 112 67 59 51 – – RM’000 3,234 1,058 2,176 2004 981 160 203 18 97 – – – – – – – – – – – – RM’000 1,450 1,124 2003 486 126 202 326 81 – – – – – – – – – – – – – .OPERATING COSTS–Continuingoperations 2. 31 Notes totheFinancialStatements

January 2004 e Otherstaff costs (e) Gratuities (d) Provision forintercompany advances (c) With theexceptionof all employeeswereemployedinMalaysia. i)Theaveragemonthlynumberofpersonsemployed (ii) i Thestaff costsincurredduringtheyearwereasfollows: (i) This relatestostaff costsotherthantheemolumentsofExecutiveDirectorsTanjong plc. subsidiary, PMP. This relatestoone-off gratuitiesawardedtocertainDirectorsfortheirpastservicesasemployeesofaprincipal operations. as welltoenableitprovideshareholders’loansitssubsidiarycompaniesundertakingtheLPG The provisionrelatestoadvancesmadeasubsidiarycompanyinrespectofitsworkingcapitalrequirements Administration Operations Management Statutory contributionstoEmployeesProvidentFund Statutory contributionstosocialsecurity W Part-time staff ages andsalaries by theGroupduringyearwasasfollows: 119 (2003: 130)employeeswhowereemployedinthePeople’s Republic ofChina, (continued) (continued) Annual Report RM’000 38,494 34,524 T ANJONG PUBLICLIMITEDCOMPANY 3,772 2004 2004 851 171 680 195 420 198 65 & Group Financial Statements2004 Group RM’000 35,815 32,130 3,493 2003 2003 845 155 690 178 447 192 65 69 Financial Statements Financial Statements 70 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .TAXATION 4. .NETINTERESTEXPENSEANDINVESTMENTINCOME 3. 31 Notes totheFinancialStatements

January 2004 Income tax–currentyear Non-Malaysian taxation Deferred taxation Income tax–prioryears Income tax–currentyear Malaysian taxation Net foreignexchangegain W Gain/(loss) ondisposalofcurrentassetinvestments Dividends fromcurrentassetinvestments Net investmentincome/(charge) Interest onborrowings Interest income Net interest expense & riteback/(provision) fordiminutioninvalueoflongterm Subsidiary companies Joint venturecompany Parent company Subsidiary companies Joint venturecompany Subsidiary companies Parent company Joint venturecompany Parent company Subsidiary companies and currentassetinvestments Quoted outsideMalaysia Quoted inMalaysia Quoted outsideMalaysia Quoted inMalaysia Financial Statements2004 (continued) 173,415 176,294 100,089 RM’000 77,105 (2,879) (1,400) (2,863) 2,495 2004 958 (90) – – ru Company Group 159,052 158,373 104,551 RM’000 53,971 (3,108) 2,040 2003 679 892 (31) 58 – – (121,263) RM’000 RM’000 ( (95,360) 44,268 44,268 45,758 75,229) 20,131 12,775 25,903 (1,400) 4,725 1,523 2004 2004 (452) 691 869 (90) – – – – – – – Group RM’000 RM’000 (44,215) (43,424) (59,906) 59,384 59,384 59,384 16,482 (8,139) 5,241 2003 2003 (791) 568 594 929 16 – – – – – – – – – .DIVIDENDS 5. .TAXATION (continued) 4. 31 Notes totheFinancialStatements

January 2004 2004 toshareholdersonrecord asat9July2004. The proposedfinaldividend, ifapprovedattheforthcomingAnnualGeneralMeeting, willbepaidon2August Final dividendofprioryear, at28sengrosspershare less Proposed finaldividendof Second interimdividendof First interimdividendof – – – –D subsidiary companiesamountedto of subsidiarycompaniesavailableforset-off againstthefutureincomechargeabletotaxofrespective Subject toagreementbythetaxauthoritiesofrespectivejurisdictions,amountunutilisedlosses Effective taxrate – T Malaysian taxrate The reconciliationbetweentheMalaysiantaxrate – ax effect of: 1 February2002tobookclosuredateof12July 1 February2003tobookclosuredateof4July Malaysian incometaxonsharesallottedbetween: Malaysian incometaxpayableon30April2004 per sharelessMalaysianincometax Others Favourable differences oncapitalallowances Subsidiaries currentyear’s lossesnotavailable per sharepaidon30October2003 Expenses notdeductiblefortaxpurposes and theeffective taxrateisasfollows: Income notsubjecttotax ifferent taxratesindifferent countries for Groupset-off 16 sentax-exempt 25 sengross 25 sengross RM134,670,000 (2003: 28sengross) (2003: Nil)pershareless (2003: 10sentax-exempt) (continued) (2003: RM126,733,000). 2004 29.5 28.0 (2.0) (5.2) (3.5) 3.3 0.2 8.7 % ru Company Group 2003 30.5 28.0 (0.6) (0.5) 0.8 0.1 0.1 2.6 % Annual Report 205,588 205,121 RM’000 71,285 71,284 62,552 T ANJONG PUBLICLIMITEDCOMPANY 2004 2004 Group/Company 27.2 28.0 (0.1) (1.4) 467 0.7 – – – % – & Financial Statements2004 117,482 116,769 RM’000 78,061 38,708 2003 2003 27.9 28.0 (0.6) 713 0.5 – – – – % – – 71 Financial Statements Financial Statements 72 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .EARNINGSPERSHARE 6. 31 Notes totheFinancialStatements .GROUPFIXEDASSETS–INTANGIBLE ASSETS 7.

January 2004 Net profit(inRM’000) The basicanddilutedEPSarecomputedasfollows: Dilutive effect* W t3 aur 035,8 56,682 – – – ( – (3,776) (2,080) ( 56,682 – (7,015) 52,906 (124) (32,845) – (124) (834) – RM67,319,000 relatingtotheacquisitionofrightsRacingTotalisator businesson24July 1992. (ii) (834) (35,663) (i) (3,776) The premiumswhicharerecordedbyasubsidiary, consistofthefollowing: (31,887) At 31January2003 2,204 At 31January2004 Net bookamount 7,849 At 31January2003/04 Impairment 88,569 At 31January2004 Charge fortheyear At 1February2003 Amortisation At 1February2003/31January2004 Cost *arising fromthedilutivepotentialofemployeeshareoptionsthatremainunexercised. Diluted EPS(sen) Basic EPS(sen) Diluted averagenumberofordinaryshares & eighted averagenumberofordinaryshares Financial Statements2004 of 20outletson1February 1990; and RM21,250,000 relatingtothe acquisitionofthesoleandexclusiverightstonumbers forecastoperation (continued) rmusrgt ihsTotal rights rights Premiums M00R’0 M00RM’000 RM’000 RM’000 RM’000 adueJettyuse Land use 390,313,476 391,068,753 405,481 755,277 FY2004 103.7 103.9 Group 385,698,259 387,516,798 1,818,539 323,119 FY2003 52,906 36,621) 98,622 9,095) 83.4 83.8 .GROUPFIXEDASSETS–TANGIBLE ASSETS 8. 31 Notes totheFinancialStatements

January 2004 * ietc ,0 5 23 (503) (273) 256 2,703 T Livestock During thefinancialyear, assetsunderconstructionamountingto ulig 2,9)–8 – (799) – 80 (103) – – 4 (125) (21,594) 190 – (44) – (36,593) – (199) – 4,273 – T (6) (1,639) – V Fixtures, fittingsandequipment – (240) Plant andmachinery – Buildings (401) 847 (4,952) (168,040) (161) (6,413) (463,456) (8,651) – (1,461) T (69,702) – Livestock V 835,172 931 Fixtures, fittingsandequipment 5 (81) Plant andmachinery (931) (835,667)* Land andbuildings – (81) Buildings – 369 Long leaseholdland – (1,048) – 369 255,020 5,427 32,649 54,179 – 2,202,163 – 66,091 96,614 781,488 14,393 V 19,049 Fixtures, fittingsandequipment Plant andmachinery Assets underconstruction Land andbuildings Buildings Long leaseholdland Freehold land Accumulated Depreciation Cost Impairment respect ofthenewpowerplant havebeencompletedandhence,reclassifiedunder plantandmachinery. otal otal otal hce 24 1 – 119 – (284) – 1,382 (1,441) (6,827) ehicles – (1,735) 2,092 ehicles 11,452 ehicles erayAjsmns 31January Adjustments/ 1 February erayCag o dutet/31January Adjustments/ Charge for 1 February 31January Adjustments/ Chargefor 1 February ,6,1 1,4 317 (993) (3,137) 317,343 3,160,511 5807 1853 ,1 4,164 2,419 (178,533) (548,037) M00R’0 M00R’0 RM’000 RM’000 RM’000 RM’000 RM’000 M00R’0 M00R’0 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 5,7)(6)23(799) 203 (169) (58,670) 342––– – – 33,442 03AdtosDsoasRcasfctos2004 Reclassifications Disposals Additions 2003 03teya ipsl elsiiain 2004 Reclassifications Disposals the year 2003 2004 Reclassifications Disposals theyear 2003 tAt At tAt At At At (continued) RM835,667,000 (2003: RM151,751,000)in Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 3,473,724 3,292,355 (719,987) (627,223) 100,998 (59,435) (37,517) (21,514) (77,512) 11,809 66,379 32,937 33,442 18,118 15,324 (6,886) (1,552) (6,814) (5,192) (1,622) 2,183 (165) (239) – 73 Financial Statements Financial Statements 74 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .GROUPFIXEDASSETS–INVESTMENTPROPERTY 9. .GROUPFIXEDASSETS–TANGIBLE ASSETS 8. 31 Notes totheFinancialStatements

January 2004 The propertyhasbeenpledgedascollateralforthesyndicated termloanfacilityreferredtoinNote17. Menara MaxisatRM470,000,000isappropriate. revaluation reserve.TheDirectorsaresatisfied,based on thefindings,thatyearendcarryingvalueof representing theGroup’s shareoftherevaluationsurplus, has beencreditedtotheinvestmentproperty of on anopenmarketexistingusebasis.Thisgaverisetoasurplus onvaluationofRM105,000,000 Messrs JonesLangWootton, aRegisteredValuer, had,on24December 2003,valuedMenaraMaxisatRM470,000,000 no depreciationischargedinaccordancewithSSAP19. The propertyisprincipallyheldforinvestmentpurposesandnotconsumptionwithinthebusiness.Assuch, T Livestock Freehold land At 31January RM24,436,000). Finance costscapitalisedforassetsunderconstructionduringthefinancialyearamountedto V Fixtures, fittingsandequipment Plant andmachinery Assets underconstruction Land andbuildings Buildings Long leaseholdland Net BookValue tl2,694,302 otal & ehicles Financial Statements2004 January 2004 2,627,615 RM’000 15,324 23,247 38,051 31,820 16,496 At 31 4,758 6,231 (continued) 631 – (continued) January 2003 2,553,804 1,702,114 781,488 RM’000 14,393 26,713 38,084 31,981 17,588 At 31 1,064 4,341 6,103 470,000 RM’000 2004 which RM72,000,000 RM975,000 365,000 RM’000 2003 (2003: 0 FIXEDASSETS–JOINTVENTURE,ASSOCIATE ANDSUBSIDIARY COMPANIES 10. 31 Notes totheFinancialStatements

January 2004 oeet 5,6 5,6 82,151 153,468 323 – – 1,060,021 (3) 1,142,172 1,085,448 153,468 – 121,368 2,150 (2) – 2,473 (4,917) 1,020,804 (1) 121,368 interest freeandhavenofixedtermsofrepayment. (4,915) 5,007 Details ofjointventure,associateandsubsidiarycompaniesaresetoutinNote23.Theaboveadvances 5,008 At 31January – 2,380 Provision forintercompany 2,380 Movements At 1February Investments insubsidiaries COMPANY At 31January Movements At 1February Investment inassociate oeet 1691031,0 122 12,702 28,560 1,063 (651) 28,682 11,639 (1,714) 39,118 – 27,479 2,917 2,917 At 31January Movements At 1February Investment injointventures GROUP advances (seeNote2(c)) nutdSaeo Netbook Share of Unquoted 2,6 ,7,7 ,9,4 1,142,172 1,295,640 – 1,174,272 121,368 M00R’0 M00RM’000 RM’000 RM’000 RM’000 tcs rpyet rft 2004 profits (repayment) at cost hrsAvne/(oss/amount (losses)/ Advances/ shares –( (continued) 884 8,2)(87,766) (88,824) – 88,824) 1,206,816 Annual Report 41,384 T ANJONG PUBLICLIMITEDCOMPANY 2,470 & Financial Statements2004 1,054,406 Net book amount RM’000 28,682 2,473 2003 75 Financial Statements Financial Statements 76 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 3 DEBTORS 13. 2 STOCKS 12. 1 LONGTERMINVESTMENTS 11. 31 Notes totheFinancialStatements

January 2004 Deferred taxasset Prepayments T Dividend receivable Other debtors T Amounts fallingduewithinoneyear rvso o tc boecne(1,195) Provision forstockobsolescence Net realisable value rvso o iiuini au (21,986) Cost partnerships havetenuresof10yearswithexpirationperiodsrangingfrom30June2009to15September2010. formed togeneratecapitalgainsprimarilyfromventureinvestmentsinearlystagecompanies.These Long terminvestmentsrepresentminorityequityinterestsheldinlimitedliabilitypartnerships,whichwere Net bookvalueat31January Provision fordiminutioninvalue Disposals Additions At 1February Cost axation recoverable rade debtors & T Spares andconsumables Distillate fuel LPG finishedproducts Financial Statements2004 rading livestock (continued) 312,437 215,348 RM’000 32,764 60,910 3,415 2004 – – ru Company Group 205,908 144,004 RM’000 46,646 7,418 7,824 2003 16 – 119,726 120,921 RM’000 RM’000 RM’000 70,894 69,120 10,532 85,512 21,656 27,591 27,290 1,400 3,221 5,605 2004 2004 2004 (226) 364 527 10 – – Group Group 114,889 114,889 RM’000 RM’000 RM’000 (20,934) 78,967 78,336 12,068 78,253 23,234 27,290 26,991 1,334 6,356 2003 2003 2003 631 299 – – – – – – 5 CREDITORS(amountsfallingdue within oneyear) 15. 4 CURRENTASSETINVESTMENTS 14. 31 Notes totheFinancialStatements

January 2004 (b) (a) Proposed dividends Dividend payable rvt etScrte 17 Private DebtSecurities omrilppr 17 Commercial papers aklas17 Bank loans cras15b Accruals te rdtr 15a Other creditors T T * Listed outsideMalaysia Listed inMalaysia Marketable securities At MarketValue rvso o iiuini au (2,425) Short termdepositswithlicensed Provision fordiminutioninvalue Fixed incomeandmoneymarketinstruments Listed outsideMalaysia Listed inMalaysia Marketable securities At Cost axation rade creditors servicing requirementofasubsidiarycompany. Includes financial institutions* of Accruals includeprogressbillings payabletoEngineering,ProcurementandConstruction (“EPC”)contractors Sweepstake Dutiesandroyalties. Other creditorsconsistmainly ofbalancespayabletoregulatoryauthoritiesi.e.Gaming Tax, Betting& RM30,697,000 RM44,908,000 (2003: RM91,995,000)inrespect oftheconstructionPanglima (2003: RM14,866,000)placedinafinanceservicereserveaccounttomeetthedebt oeRM’000 Note (continued) 1,111,753 1,019,448 536,996 155,641 RM’000 71,284 71,285 45,000 25,000 10,000 12,514 88,614 57,658 86,731 45,674 41,057 92,305 62,837 31,893 60,412 28,249 34,588 2004 2004 ru Company Group ru Company Group 779,847 307,720 141,629 137,006 708,190 620,899 RM’000 RM’000 78,061 30,000 24,648 14,601 46,182 73,221 35,827 37,394 87,291 70,067 25,427 61,864 30,254 39,813 (8,203) 2003 2003 – Annual Report 149,043 256,730 256,730 RM’000 RM’000 71,284 71,285 T ANJONG PUBLICLIMITEDCOMPANY 6,209 power plant. 2004 2004 265 – – – – – – – – – – – – – – – & Financial Statements2004 346,564 346,530 RM’000 RM’000 78,917 78,061 2003 2003 291 565 121 121 (87) 34 34 34 34 – – – – – – – – – 77 Financial Statements Financial Statements 78 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 7 NETDEBT 17. 6 CREDITORS(amountsfallingdueaftermore thanoneyear) 16. 31 Notes totheFinancialStatements

January 2004 Net Debt rvt etScrte 17 Liquid Resources Security depositsforoffice rental Private DebtSecurities Debt aklas17 Bank loans & Private DebtSecurities Bank loans Unsecured Cash Private DebtSecurities Short termdeposits Bank loans Secured Current assetinvestments Financial Statements2004 eembebns17b Redeemable bonds eimtr oe 17aiv 17aiii Medium termnotes Commercial papers Islamic debtsecurities eilbns17aii Bridging loan Serial bonds ydctdtr on17ai Syndicated termloan (continued) oeRM’000 Note oeRM’000 Note 25c 1,808,240 1,734,155 1,585,000 1,127,601 1,019,448 (680,639) 350,000 420,000 830,000 153,240 143,240 55,000 15,848 92,305 5,915 2004 2004 – – Group Group 1,340,608 (618,620) 350,000 300,000 450,000 160,960 984,389 825,000 153,240 721,988 620,899 RM’000 RM’000 55,000 24,648 13,798 87,291 6,149 2003 2003 – 7 NETDEBT 17. 31 Notes totheFinancialStatements

January 2004 a Thesecureddebtcomprises: (a) b Theunsecured debt comprisesredeemablebondsofnominalvaluewhichwereissuedbyPowertekatpar (b) i Abanksyndicated termloansecuredbyafixedchargeoverthefreeholdlandandfloating (i) i)MediumTerm Notes(“MTN”)ofRM55millionnominal valuewereissuedatparbetweenAugustand (iv) Al-Bai’BithamanAjilIslamicDebtSecurities(“BaIDS”)withanominalvalueofRM450millionwhich (iii) SerialbondsofRM830millionnominalvaluewhichwereissuedin2tranchesbyPanglimaatparon (ii) of Panglima’s powerplant. The proceedsfromthebondswereadvancedbyPowertek toPanglimapartfinancetheconstruction interest payablesemi-annuallyinarrears.Thebondswere issuedwithtenuresrangingfrom5to10years. on 29August2001.Theweightedaverageinterestrate of thebondsis6.18%p.a.(2003:p.a.)with (2003: 8.15%p.a.) reference tolenders’baselendingrate.Forthefinancialyear, theaverageinterestratewas7.88%p.a. The loanbearsinterestrateswhicharedeterminedinadvanceforperiodsofupto6monthsby agreement betweenthesesubsidiarycompanies. ceasing tobetheholdingcompanyofsuchsubsidiarycompaniesandterminationlease winding up,dissolutionorliquidationoftheCompanycertainsubsidiarycompanies; option events.Theseincludeinter-alia: abreachofcertainfinancialcovenantsbytheCompany; amount outstandingunderthetermloanon1April2006oruponoccurrenceofcertainput Under thetermsofputoption,majoritylendersmayrequireCompanytopurchase over theassetsofasubsidiarycompanyandputoptiongrantedbyCompany. the MTNwereusedtorepayadvancesfromPowertek. p.a. (2003:4.06%p.a.).TheMTNhavematurityperiods ranging from2to5years.Theproceeds in Note17(a)(iii)abovealsocoverstheMTN.Theweighted averagefinancecostoftheMTNis4.06% November 2002byPahlawanaspartofitsNotesIssuance FacilityAgreement.Thesecuritymentioned acquisition ofapowerplantatTanjong Kling,Melaka. settle thedeferredconsiderationduetoTenaga NasionalBerhad(“TNB”)inrespectofPahlawan’s maturity periods,rangingfrom2to10years.TheproceedstheBaIDSweremainlyutilised is 6.19%p.a.(2003:6.12%p.a.)withinterestpayablesemi-annuallyinarrears.TheBaIDShavevarious business andachargeoveritsfinanceservicereserveaccount.TheaveragecostoftheBaIDS by wayofanassignmentcertaininsurancesinrelationtoPahlawan’s properties,assetsand were issuedbyPahlawanPowerSdnBhd(“Pahlawan”)on31January2002.TheseBaIDSaresecured construction costsofPanglima’s powerplant. years. Theproceedsfromthebondswereissuedtorepaybridgingloanandfinance interest payablesemi-annuallyinarrears.Thebondswereissuedwithtenuresrangingfrom6.5to13 7 March2003and192003.Theweightedaverageinterestrateofthebondsis7.42%p.a.with in January2000. (continued) . The loanisrepayablein29semi-annualinstalments,thefirstofwhichcommenced (continued) Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 79 Financial Statements Financial Statements 80 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 7 NETDEBT 17. 31 Notes totheFinancialStatements

January 2004 Maturity ofdebt The maturityanalysisoftheGroup’s debtisasfollows: T Private DebtSecurities Bank loan Amounts fallingdueaftermore than1year Private DebtSecurities Bank loans Amounts fallingduewithin1year otal Debt & 5 yearsormore Between 1and2years Within 1year Between 2and5years eimtr oe 17aiv Medium termnotes sai etscrte 17aiii Islamic debtsecurities eilbns17aii 17b Redeemable bonds Serial bonds ydctdtr on17ai Syndicated termloan sai etscrte 17aiii Islamic debtsecurities eimtr oe 17aiv Medium termnotes ydctdtr on17ai Syndicated termloan Bridging loan Financial Statements2004 (continued) (continued) oeRM’000 Note 1,728,240 1,808,240 1,221,880 1,808,240 429,540 375,000 350,000 830,000 143,240 76,820 80,000 30,000 45,000 80,000 25,000 10,000 2004 – Group 1,340,608 1,340,608 362,368 315,000 978,240 420,000 583,240 350,000 153,240 362,368 300,000 RM’000 80,000 55,000 30,000 24,648 7,720 2003 – 8 FINANCIALINSTRUMENTS 18. 31 Notes totheFinancialStatements

January 2004 the abovepartiestobeunlikely. various financialinstitutions. TheGroupconsiderstheriskofmateriallossinevent ofnon-performanceby assets areinvestedsafelyand profitablybyassessingcounterpartyrisksandallocating placementlimitsfor deposits areplacedwithlicensed financialinstitutions.TheGrouptreasurypolicy seekstoensurethatcash application ofstrictcredit approval, monitoringandenforcementpolicies.Counterparty risksarisewhen to thesellingagentsaremitigatedbyobtainingcollaterals (i.e.depositsandbankguarantees)aswellthe into betweenthePowertekGroupandTenaga NasionalBerhad,thenationalutilitycompany. Therisksrelating Credit risksarisemainlythroughthecreditperiodextended tosellingagentsofPMPandtransactionsentered Credit andcounterpartyrisk provisions andinflationaryadjustingfactorsinagreements withitscustomers. term supplycontractstominimisepriceescalationand, toacertainextent,theinclusionofcostpass-through expenses ofitspowerplants.Thesearemitigatedthrough stringentprocurementandtenderprocedures,long The Group’s exposuretomarketriskarisesmainlyfrominflationary pressures ontheoperationsandmaintenance Market risk future. and bankotherborrowingstomeettheGroup’s operatingandfinancingrequirementsfortheforeseeable The Group’s holdingsofshorttermfinancialassetsminimisesliquidityriskastherearesufficient liquidassets Liquidity andcashflowrisk as ahedgeagainstmajorfluctuationsinitsforeigncurrencypaymentobligationsexplainedNote22(b). payment obligationsundertheEPCcontract.TheGrouphasenteredintoforeigncurrencyforwardcontracts subsidiary forthepurchaseofmaterials,sparesandservicesmaintenanceitspowerplants The Groupisalsoexposedtocurrencyrisksasaresultoftheforeigntransactionsprincipal gross assets. hedged againsttranslationexposureastheseinvestmentsdonotformasignificantproportionoftheGroup’s financial assetsthataredenominatedinforeigncurrencies(“translationexposure”).TheGrouphasnot The Grouphaspotentialcurrencyriskexposureinitsnetinvestmentoverseassubsidiariesandthose Foreign currency risk 31 January2004,88%oftheGroup’s borrowingswereatfixedratesandthebalancesfloatingrates. from theunderlyingoperationsorassetsandeconomiclifeofbeingfinanced.At profiles ofborrowingsarestructuredaftertakingintoconsiderationthecashinflowsexpectedtobegenerated regularly reviewedagainstprevailingandanticipatedmarketinterestrates.Therepaymentmaturity proportion ofborrowingsatfixedratesoverthemediumterm,interestrateprofileis fixed andfloatingratesofinterest,forspecifictransactions.WhiletheGroupseekstomaintainasignificant are obtainedinthesamecurrencyasanticipatedrevenuesfromunderlyingbusinessactivities,atboth The Groupfinancesitsoperationsbyamixtureofinternalfundsandbankotherborrowings.Borrowings Interest raterisk below thepoliciesandothermeasurestakentomanagetheserisks: foreign currencyrisk,liquidityandcashflowmarketriskcreditcounterpartyrisk.We setout instruments duringtheperiodunderreview. ThemajorfinancialrisksfacingtheGroupareitsinterestraterisk, finance fortheGroup’s operationsandtohedgeagainstcertainexposures.Therewasnotradinginfinancial The primarypurposesoffinancialinstrumentsare,inter-alia, tomaintainanadequatelevelofliquidity, toraise (continued) Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 81 Financial Statements Financial Statements 82 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 8 FINANCIALINSTRUMENTS 18. 31 Notes totheFinancialStatements

January 2004 a FinancialLiabilities (a) & Financial Statements2004 i Thefairvalues andinterestrateriskprofileoftheGroup’s financialliabilitieswhicharestatedinRM (i) i)ThematurityprofileoftheGroup’s financialliabilitiesisasfollows: (ii) Fixed rate are asfollows: No InterestRate Floating Rate at theirfairvalues. anticipated thereforethattheabovefinancialliabilitieswillbesettledattheirbookvaluesandnot in acurrenttransactionbetweenwillingparties,otherthanforcedorliquidationsale.Itis The fairvaluesofthefinancialinstrumentsareamountatwhichcouldbeexchanged 5 yearsormore Between 2and5years Between 1and2years Within 1year Private DebtSecurities Security depositsforoffice rental Medium termnotes Commercial papers Bridging loan Syndicated termloan Redeemable bonds Serial bonds Islamic debtsecurities (continued) (continued) okvleFairvalue Book value ,0,0 1,601,859 1,600,000 ,1,5 1,814,774 1,814,155 ,1,5 100 68 1,814,155 1,226,514 5,0 348,564 831,977 350,000 830,000 0,4 208,240 208,240 153,240 153,240 421,318 420,000 3,4 24 430,241 M00RM’000 RM’000 M00% RM’000 50055,000 55,000 7404 4 77,400 80,000 ,1 4,675 5,915 –– –– 2004 2004 okvleFairvalue Book value ,4,5 1,368,456 1,346,757 ,4,5 100 1,346,757 5,0 355,911 350,000 4,0 540,608 540,608 300,000 160,960 300,000 823,138 160,960 467,227 800,000 450,000 1,1 23 316,817 8,7 44 27 587,572 362,368 M00RM’000 RM’000 M00% RM’000 50055,000 24,648 55,000 24,648 0006 80,000 ,4 4,710 6,149 –– 2003 2003 8 FINANCIALINSTRUMENTS 18. 31 Notes totheFinancialStatements

January 2004 b FinancialAssets (b) a FinancialLiabilities(continued) (a) i ThefairvalueprofilesoftheGroup’s financialassetsareasfollows: (i) i)TheinterestrateriskandcurrencyprofileoftheGroup’s financialassetsatthebalancesheetdateare (ii) ii TheinterestrateriskprofileoftheGroup’s fixedratefinancialliabilities atthebalancesheetdateis (iii) instruments. The valuationbasisoffinancialliabilitiesisexplainedintheaccountingpoliciesrelatingto The detailsoffixedandfloatingratesfinancialliabilitiesaresetoutinNote17. urnyR’0 M00R’0 RM’000 SGD RM’000 AUD USD RM’000 RM RM’000 Currency Long terminvestments Fixed incomeand Short termdeposits W as follows: investments whichcarryfixedinterestrates. are investmentsinpartnershipsasdetailedNote11.Fixedincomeandmoneymarketinstruments to sixmonths.Marketablesecuritiesareinvestmentsinlistedwhilethelongterm Short termdepositsbearinterestratessetinadvanceforvariousperiodsofmaturityfromovernightup Marketable securities Cash W as follows: EURO (2003: 2.86%). The effective weightedaverageinterest rateapplicableforfinancialassetsduringtheyearwas * Thiscomprisescash,marketable securitiesandlongterminvestments.SeeNote18 (b)(i) Others eighted averageperiodforwhichrateisfixed(years) eighted averageinterestrate(%) money marketinstruments 39796254,7 994,593 44,371 926,275 23,947 183101268,7 1,133,206 80,077 1,021,236 31,893 ,4 39269378,861 6,923 63,992 7,946 ie laigNo interest Floating Fixed aert ae Total rate* rate rate –– – – – (continued) 91127631,937 2,756 29,181 ,8 56227,450 25,662 1,788 ––– 2004 6 365 365 (continued) okvleFairvalue Book value ,3,0 1,160,674 1,133,206 1,019,448 1,019,448 M00RM’000 RM’000 18331,893 86,731 31,893 15,848 60,412 15,848 ,0 6,754 5,605 2004 M00R’0 M00RM’000 RM’000 RM’000 RM’000 54759674,0 587,161 42,107 519,627 25,427 54760898,1 728,344 82,018 620,899 25,427 ie laigNointerest Floating Fixed aert ae Total rate* rate rate – – –– –– –– 2004 14477689,140 7,736 81,404 98815321,381 1,513 19,868 8.5 6.8 okvleFairvalue Book value Annual Report 2003 2,4 739,775 728,344 620,899 620,899 M00RM’000 RM’000 54725,427 73,221 25,427 13,798 61,864 13,798 T ANJONG PUBLICLIMITEDCOMPANY ,5 6,430 6,356 2003 56425,614 25,614 ,8 4,688 4,688 5.7 5.6 & 6 360 360 Financial Statements2004 2003 . 2.72% 83 Financial Statements Financial Statements 84 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 0 PAID UPSHARECAPITAL 20. 9 PROVISIONFORLIABILITIESANDCHARGES 19. 8 FINANCIALINSTRUMENTS 18. 31 Notes totheFinancialStatements

January 2004 All timingdifferences havebeenaccountedfor. At 31January2004 Shares issuedundertheESOS forcashconsideration At 1February2003 Allotted andfullypaid At 1February2003/31January2004 Authorised At 31January Provision fortheyear At 1February Deferred taxinrespectofacceleratedcapitalallowances: tes157––1,507 – – – 147,344 1,507 – (59,078) – 45,565 – 160,857 Total 1,509 (93,235) (28,233) – (62,696) Others 58,138 Dollar 165,076 – Dollar T Others Renminbi (93,235) Ringgit Malaysia At 31January2003 T Others Renminbi Ringgit Malaysia At 31January2004 Functional currency Currency Exposures (c) otal tl6,2 555(908 55,616 (59,078) 45,565 69,129 otal & Financial Statements2004 liabilities atthebalancesheetdatearedealtwithinprofitandlossaccount. currencies otherthantheirfunctionalcurrency. Exchangedifferences onretranslationoftheseassets and The tablebelowshowstheextenttowhichGroupcompanieshavemonetaryassetsandliabilitiesin (continued) (continued) 0,8 818(28,233) 58,138 103,889 Net foreign currency monetaryassets/(liabilities) Number ofshares f75pneec ’0 RM’000 £’000 of 7.5penceeach SAustralian US 9,2,3 972142,352 138,102 29,702 29,041 160,390 396,024,136 33,750 387,209,136 450,000,000 ,1,0 6 4,250 661 8,815,000 in RM’000 275,813 200,108 RM’000 75,705 2004 Group 200,108 146,137 194,981 133,794 RM’000 (62,696) 53,971 1,509 2003 1 PROFITANDLOSS ACCOUNT 21. 0 PAID UPSHARECAPITAL 20. 31 Notes totheFinancialStatements

January 2004 distribution as tax-exemptdividends. by wayofdividendswithout incurringadditionaltaxliability. Of thisamount,RM45.9millionisavailablefor with theMalaysianInlandRevenue Board,theentireretainedprofitsofCompany isavailablefordistribution Based onestimatedtaxcredits availableundertheMalaysianIncomeTax Act,1967andsubjecttoagreement Executive Directors.ThemovementsoftheoptionsharesunderESOSduringyearareasfollows: bye-laws oftheESOS,optionstosubscribeforsharesinCompanyweregrantedeligibleemployeesand The ESOScommencedon17September1999andwillexpire2004.Inaccordancewiththe Employees’ Share OptionSchemeNo.2(“ESOS”) 2Jnay20 .1190 9.91 12 January2004 coe 0386 735 23 158 1,900 495 6 3 8.63 469 7.91 8.97 8.58 36 9.09 68 125 593 7.88 5.70 8.13 34 6.12 1,256 6.20 8.45 6 October2003 10.40 8 January2003 8.75 7 October2002 8.05 3 July2002 9 April2002 7 January2002 8 October2001 6 April2001 8 January2001 6 October2000 11 July2000 7 April2000 6 January2000 6 October1999 ae fofro pin rc e Numberof Price per (83) (8,870) Dates ofoffer ofoptions consisted ofthefollowing: 2,230 12,814 The numberofoptionsoverthesharesCompanyoutstandingunderESOSasat31January2004, During thefinancialyear, 8,815,000optionsharesexercisedduringtheyearwereallottedtograntees. At 31January2004 Exercised Lapsed Granted andaccepted At 1February2003 (continued) option shares Number of 6,091 hr optionshares share ‘000 M‘0 RM (continued) 6,091 00 Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 85 Financial Statements Financial Statements 86 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 2 COMMITMENTSANDCONTINGENCIES 22. 31 Notes totheFinancialStatements

January 2004 b Forward contractcommitments (b) a Capitalcommitments (a) & Financial Statements2004 the balancesheetdatewasafavourablenetpositionof RM10,912,000(2003:RM4,443,000). The fairvalueoftheaboveoutstandingcontractcommitments usingforwardexchangemarketratesat equivalent amountisdisclosedasabove. into atcontractualratesaveragingRM1:EURO0.2287(2003:0.2540).TheRinggitMalaysia recognised inthefinancialstatements,rangedfrom1to10months.Theseforwardcontractswereentered As at31January2004,thesettlementdatesonopenforeigncurrencyforwardcontracts,whichwerenot EPC contract. in exchangeratesrelationtoitspaymentobligationsEUROcurrencyrespectoftheabove The Grouphasenteredintoforeigncurrencyforwardcontractstoprotectthefrommovements Contractual RMequivalent Analysed asfollows: Authorised butnotcontracted Authorised andcontracted Others Fixtures, fittingsandequipment Acquisition ofremainingsharesinPowertek Balance ofinvestmentcommitmentinTropical Islands Power generatingassets (continued) 129,509 293,100 155,722 293,100 225,100 RM’000 19,469 23,079 94,830 68,000 2004 – Group 437,563 267,200 146,030 437,563 290,992 146,571 RM’000 96,002 20,144 4,189 2003 – 3 SUBSIDIARY ANDASSOCIATED COMPANIES 23. 31 Notes totheFinancialStatements

January 2004 ainlSu amSnBdMlyi riay10 Horse breeding/ Provisionof 100% 100% Ordinary Ordinary Malaysia Malaysia PMP Management ServicesSdnBhd National StudFarmSdnBhd aii P opn iie epesCptl6%Importation, bottling, 65% Capital People’s Pacific LPGCompanyLimited aii P opn iie epesCptl6%Importation, bottling, 60% Capital People’s Pacific LPGCompanyLimited minKai d h aasaOdnr 7 PropertyInvestment 67% Ordinary Malaysia T Impian KlasikSdnBhd agiaPwrSnBdMlyi riay100% Ordinary Malaysia Panglima PowerSdnBhd alwnPwrSnBdMlyi riay100% Ordinary Malaysia Pahlawan PowerSdnBhd oetkBra aasaOdnr 100% Ordinary Malaysia Investment holding 100% Investmentholding Ordinary 100% NumbersForecast Malaysia Ordinary activities Principal 100% Powertek Berhad BritishVirgin Held bytheGroup Ordinary andvoting rights Global Investments(BVI)Limited Malaysia of share Daya MahsuriSdnBhd andoperations incorporation Pan MalaysianPoolsSdnBhd Held bytheparentcompany Active companies associated companies Name ofsubsidiary/ 31 January2003and2004arethesameunlessotherwisestated. financial statements,areshownbelow. Thepercentageholdingandvotingrightsforthefinancialyearsended The subsidiaryandassociatedcompaniesoftheGroup,allwhichhavebeenincludedinconsolidated nogCt etePoet aasaOdnr 0%Letting and 100% Ordinary Malaysia anjong CityCentreProperty W T aaeetSnBdmaintenanceof Management SdnBhd iig eulccnrbto sale&distributionof contribution Republic aixing# h#Rpbi otiuinsale&distributionof contribution Republic uhu# onr fCasholding Class Country of fCialiquefiedpetroleum of China fCialiquefiedpetroleum of China Islands (continued) Percentage + + + Annual Report T gas consultancy services agistment services gas Menara Maxis To Generation business ofPower To Generation business ofPower To Generation business ofPower T and Racing T ANJONG PUBLICLIMITEDCOMPANY otalisator business otalisator business

carry outthe carry outthe carry outthe & Financial Statements2004 87 Financial Statements Financial Statements 88 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 3 SUBSIDIARY ANDASSOCIATED COMPANIES 23. 31 Notes totheFinancialStatements

January 2004 nentoa esr ytm ogKn riay10 Investment holding Ta 100% Investmentholding Ordinary T 100% T HongKong Ordinary T T Malaysia International LeisureSystems Instant Transaction SystemsSdnBhd Held bytheparentcompany Dormant companies T Delima SempurnaSdnBhd Central PacificAssetsLtd T evcsSnBdMlyi riay10 Provisionof services 100% Ordinary activities Principal Malaysia andvoting rights Pacific OnlineSystemsCorporation of T share Wynyarra 1996PtyLtd andoperations incorporation ETS ServicesSdnBhd Held bytheGroup Active companies(continued) associated companies Name ofsubsidiary/ nogMngmn aasaOdnr 0%Dormant 100% Ordinary Investment holding Malaysia Investment holding 100% Investment holding 100% Ordinary 100% Ordinary Malaysia Ordinary Malaysia Malaysia anjong Management anjong EntertainmentSdnBhd anjong ChinaHoldingsSdnBhd anjong AssetHoldingsSdnBhd ropical IslandAssetManagementGmbH anjong GoldenVillage SdnBhd & jn oe odnsSnBdMlyi riay10 Investment holding 100% Ordinary Malaysia njong PowerHoldingsSdnBhd Services SdnBhd (H.K.) Limited Financial Statements2004 # * # * ø ø *# **# * ø rts ignOdnr 0 Investmentholding 50% Ordinary British Virgin onr fCasholding Class Country of hlpie ls B 0 Leasingoffacilities 20% Class“B” Philippines emn riay5%Propertyinvestment 50% Ordinary Germany utai riay10 Horseracing/breeding 100% Ordinary Australia aasaOdnr 0 Provision of 50% Ordinary Malaysia aasaOdnr 8 Filmexhibition 58% Ordinary Malaysia Islands (continued) (continued) omnforonlinelottery Common Percentage management services operations transaction systems related toelectronic 3 SUBSIDIARY ANDASSOCIATED UNDERTAKINGS 23. 31 Notes totheFinancialStatements

January 2004 Cine BusinessSdnBhd ø # Investment holding + Investmentholding Associate ** 33% * Joint 100% venture Ordinary Ordinary T Malaysia HongKong Tr Dormant Investmentholding Tr Dormant 100% 100% Investment holding 100% Ordinary Ordinary 100% Global EntertainmentAnd Ordinary Netherlands Ta Malaysia Ordinary Investment holding Malaysia Parkdale Limited Malaysia 100% Pacific LiquifiedPetroleumGas 100% 100% Ordinary Pacific AutomatedSystemsCorporation Ordinary Ordinary Saluran UnggulSdnBhd 100% Malaysia activities Lintasan KlasikSdnBhd Principal Malaysia Ordinary Malaysia Lanjut NikmatSdnBhd T andvoting Malaysia rights T of share Gagasan PrismaSdnBhd Pendekar PowerSdnBhd andoperations incorporation Dian WijayaSdnBhd Ciptaan EfektifSdnBhd Held bytheGroup Dormant companies(continued) associated companies Name ofsubsidiary/ ropical IslandManagementGmbH Investmentholding Investmentholding 100% 100% Ordinary Ordinary Malaysia Malaysia anjong PropertyManagementSdnBhd anjong CityCentrePropertiesSdnBhd opical IslandHoldingGmbH opical IslandS.A.R.L. jn nryHlig d h aasaOdnr 0%Investment holding 100% Ordinary Malaysia njong EnergyHoldingsSdnBhd LG netet .. Antilles Management SystemsSdnBhd (LPG) InvestmentsN.V. Acquired duringthefinancial year Companies notauditedbyPricewaterhouseCoopers The percentageheldforthese companiesfortheyearended31January2003was 86% *# *# ø *# ø ** *# ø # uebugOdnr 0 Investmentholding 50% Ordinary Luxembourg onr fCasholding Class Country of hlpie omn10 Investmentholding 100% Common Philippines emn riay5%Operation of 50% Ordinary Germany emn riay5%Investment holding 50% Ordinary Germany aasaOdnr 8 Dormant 58% Ordinary Malaysia (continued) (continued) Percentage + + + Annual Report T leisure park Dormant Dormant Investment holding ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 89 Financial Statements Financial Statements 90 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 4 RELATED PARTY TRANSACTIONS 24. 31 Notes totheFinancialStatements

January 2004 a ExpenseschargedtotheGroup profit andlossaccount: (a) Financial ServicesAuthorityListingRules. The trusteeoftheTrust isthecontrollingshareholderofCompanyasdefinedbyUnitedKingdom AnandaKrishnanTatparanandam andhisfamily. (ii) (i) companies thatareassociatedwith: been contractedintheordinarycourseofbusinessandonnormalcommercialtermsbetweenGroup The followingisasummaryofmaterialtransactionsasdefinedbyFRS8,“RelatedPartyDisclosures”,whichhave & Financial Statements2004 Purchase ofBigSweeptickets: Cinema hallrentals: Software maintenanceandsupportservices: Donations: Closed circuittelevisionbroadcastingservices: T Consultancy services: T Building andpropertymaintenanceservices: Software supportandlicencefees: Bloodstock managementandaccountingservices: Equipment leaserentals: Rental ofpremises: Connection andtransactionservices: Sponsorship ofevents: (“the Trust”) and The trusteeoftheTrust thatisassociatedwiththefamilyofAnandaKrishnanTatparanandam andfoundations echnical advisory, operationsandmaintenancefees: elecommunication andrelatedservices: Multimedia InteractiveTechnologies SdnBhd Malaysian Community&EducationFoundation KLCC UrushartaSdnBhd* Perkhidmatan UsahaTegas SdnBhd All AsiaPowerServicesSdnBhd Communications andSatelliteServicesSdnBhd Multimedia InteractiveTechnologies SdnBhd MEASAT BroadcastNetworkSystemsSdn Bhd Kia-Ora EstatesPtyLtd Pexpac Ltd T UTSB ManagementSdnBhd anjong GoldenVillage SdnBhd Compute SystemsLimited Pan MalaysianSweepsSdnBhd Compute SystemsLimited (continued) RM’000 38,354 15,529 4,620 1,680 2,000 2,253 7,448 1,457 1,097 1,165 2004 176 391 500 38 – – RM’000 36,733 15,617 4,620 3,064 1,680 2,026 5,674 1,272 2003 390 643 439 795 501 12 – – 4 RELATED PARTY TRANSACTIONS(continued) 24. 31 Notes totheFinancialStatements

January 2004 Thesecompaniesceasedtoberelated partiesduringthefinancialyearunderreview. * Relatedpartybalances: (e) Acquisitionoftangiblefixedassets: (d) Recoveryofexpensesandshared overheadcosts: (c) b Incomecredited totheGroup profit andlossaccount: (b) Amounts duefromrelatedparties Amounts duetorelatedparties Mobilisation costsforPanglimapowerplant: Financial advisoryfees: Project managementfees: T Cinema hallrentals: Car parkincome: Management fees: Lease rentalandtenantservicerevenue: elelink gatewaysystem: UT ProjectsSdnBhd All AsiaPowerServicesSdnBhd Multimedia InteractiveTechnologies SdnBhd MAI SdnBhd,BinariangSatelliteServicesBhd T Maxis CommunicationsBerhad,UTSBManagementSdnBhd, UTSB ManagementSdnBhd,MAIBhd KLCC ParkingManagementSdnBhd*,MaxisCommunicationsBerhad, MAI SdnBhd,BinariangSatelliteSystemsBhd Maxis CommunicationsBerhad,UTSBManagementSdnBhd, anjong GoldenVillage SdnBhd,PanMalaysianSweeps T anjong GoldenVillage SdnBhd Maxis CommunicationsBerhad UTSB ManagementSdnBhd (continued) Annual Report RM’000 22,833 22,429 T ANJONG PUBLICLIMITEDCOMPANY 7,428 7,283 2004 704 121 208 23 30 53 75 – – & Financial Statements2004 RM’000 20,275 22,870 21,274 5,408 1,373 4,739 3,150 6,738 1,042 2003 216 458 96 – 91 Financial Statements Financial Statements 92 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 5 NOTESONGROUPCASHFLOWSTATEMENT 25. 31 Notes totheFinancialStatements

January 2004 e ahotlwfo custosaddsoas(562,278 Net cashoutflowfrom acquisitions anddisposals Repayment fromajointventure Net investmentinanassociate company Acquisition ofminorityinterestinasubsidiary Long terminvestments e ahotlwfo aia xedtr (16,870) Construction ofapowergenerationplant Acquisitions anddisposals Net cashoutflowfrom capitalexpenditure Disposal offixedassets Purchase offixedassets Capital expenditure Net cash(outflow)/inflowfrom on returns Dividend paidtominorityinterests Dividend receivedfromcurrentassetinvestments Interest paid Interest received oninvestmentsandservicingoffinance Returns e ahifo/otlw rmoeaigatvte 743,146 Net cashinflow/(outflow)from operatingactivities b Analysisofcashflowsforheadingsnettedintheflowstatement (b) Movement increditors Movement indebtors Movement instocks Adjustment forothernon-cashitems Depreciation andamortisation Operating profit a Reconciliationof operatingprofit tooperatingcashflows (a) & netet n evcn ffnne(73,421) investments andservicingoffinance Financial Statements2004 (continued) (267,804) (282,879) (108,626) 842,000 182,309 659,654 RM’000 RM’000 (18,379) (18,121) (99,603) 24,257 11,286 (1,514) 7,000 1,251 1,925 2004 2004 (216) 37 – ) ru Company Group ru Company Group (400,808) (358,041) 6,1 ( 661,416 692,644 131,125 561,650 RM’000 RM’000 (44,907) (14,479) (14,764) (68,316) (82,388) (75,950) (22,130) 16,706 66,852 (3,561) (3,961) 6,000 1,327 2003 2003 (299) (131) 285 (170,903) 130,061 124,416 162,401 RM’000 RM’000 (8,502) 5,645 2,526) 5,645 2004 2004 331 – – – – – – – – – – – – – (215,532) 170,741 161,280 212,622 RM’000 RM’000 (2,991) (2,910) 9,461 2003 2003 (55) (26) – – – – – – – – – – – – – 5 NOTESONGROUPCASHFLOWSTATEMENT 25. 31 Notes totheFinancialStatements

January 2004 o-ahcags–3–3 – (89,112) 257,762 – – 346,871 3 – (89,837) 256,730 5,497 – 1,032 725 346,564 (352) (67,516) (680,639) 307 (467,280) 5,849 (1,808,240) (618,620) 397,714 1,111,753 (1,340,608) – 15,848 2,050 708,190 13,798 At 31January2004 Non-cash changes Net cashflow At 1February2003 Company At 31January2004 Non-cash changes Net cashflow At 1February2003 Group 540,188 Analysisofnetdebt (c) Net cashinflow/(outflow)from financing Proceeds fromdisposalofunexercised Increase inborrowings Net cash(outflow)/inflowfrom management Issue ofordinaryshares Advances tosubsidiarycompanies Financing Currency translationdifferences Decrease/(increase) incurrentassetinvestments (Increase)/decrease infundsplacedondeposit Management ofliquidresources b Analysisofcashflowsforheadings nettedinthecashflowstatement(continued) (b) share optionsbyasubsidiary flqi eore (392,295) of liquidresources (continued) (continued) ahadCurrent Cash and aacsivsmnsDb Total Debt investments balances M00R’0 M00RM’000 RM’000 RM’000 RM’000 (398,612) 467,631 RM’000 72,557 akasset bank 5,414 2004 903 – – ru Company Group (214,125) (155,040) 241,269 193,785 RM’000 (61,899) 46,255 1,229 2,814 2003 – Annual Report (153,469) RM’000 (80,912) 96,076 72,557 89,800 T ANJONG PUBLICLIMITEDCOMPANY 6,239 2004 37 – – & Financial Statements2004 RM’000 (35,895) (30,478) (82,150) (33,098) 46,255 2,620 2003 – – – 93 Financial Statements Financial Statements 94 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 6 SIGNIFICANTEVENTS 26. 31 Notes totheFinancialStatements

January 2004 c InvestmentinTropical Islandsventure (c) Commercial operations (b) a GeneralOffer (a) & Financial Statements2004 Construction workisexpected tocommenceinMay2004andbecompletedthefourth quarterof2004. effectively makingtheventureasubsidiary company. the Groupenteredintoanagreement withALItoincreaseitsinterestintheventure from50%to75%, The acquisitionofthedomeandrelatedassetswascompleted on16April2004,andatthesametime, Federal RepublicofGermanyincorporatingavariety tropicalsettingsinafreestandingdome. a 50:50jointventurewithAuLeisureInvestmentsPte Ltd (“ALI”)todeveloparesortdestinationinthe On 11July2003,Tanjong Entertainment SdnBhd,awhollyownedsubsidiaryofTanjong plcenteredinto 31 March2003. Cycle GasTurbine (“CCGT”)powerplant andtheCCGTpowerplantachievedcommercialoperationson Panglima completedtheconversionofitsOpenCycleGas Turbine powerplantintoa720MWCombined et(7,9)–(272,890) – 31,879 15,583 384 109,760 327 – – (272,890) – – – 31,879 15,583 109,760 384 327 (30,282) – Creditors (30,282) Debt Short termdeposits Cash andbankbalances Current assetinvestments Debtors Stocks T The analysisofnetassetsacquiredandfairvaluetotheGroupasat30April2003isfollows: the Group.PowertekwassubsequentlydelistedfromMainBoardofBursaMalaysiaon18April2003. shares representing84.04%heldpreviouslyresultedinPowertekbecomingawhollyownedsubsidiaryof representing 15.96%ofequityinterestinPowertek.Thisacquisitiontogetherwith193,302,744Powertek The acquisitionamountingtoRM312.7millioninvolvedthepurchaseof36,697,256Powertekshares General Offer madeon31January2003andtheresultingcompulsoryacquisition30April2003. On 30April2003,theGroupcompletedacquisitionofremainingsharesinPowertekpursuanttoa eerdtxto 3,5)–(33,853) – (33,853) Consideration paidincash Goodwill Deferred taxation nil ie ses40679,5 491,803 91,156 400,647 angible fixedassets (continued) 2,5 116312,711 91,156 221,555 M00R’0 RM’000 RM’000 RM’000 au eauto toGroup Revaluation value okFairvalue Book 312,711 – 7 ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements

January 2004 a Differences inaccountingpolicies (a) MALAYSIAN ACCOUNTINGREQUIREMENTS NTA pershareasadjustedforMASB Adjustments NTA pershareasat31January Net tangibleassets(“NTA”) pershare (insen) Minority interestsasadjustedforMASB Deferred taxationonrevaluationsurplus Minority interestsasat31January Minority interests Shareholders’ fundsasadjustedforMASB Deferred taxationonrevaluationsurplus Adjustment forproposeddividend Shareholders’ fundsasat31January Equity shareholders’ funds Retained profitasadjustedforMASB Adjustment forproposeddividend Retained profitasat31January Profit and lossaccount(“Retainedprofit”) i)doesnotrequiredeferredtaxationliabilityprovisionsfortherevaluationofinvestmentproperties (ii) (i) United KingdomandMalaysiaexceptthattheUKGAAP: The accountingpoliciesadoptedbytheGroupcomplywithAccountingStandardsapplicablein Deferred taxationonrevaluation surplus Goodwill onfairvalueadjustments arising Proposed dividend from businesscombinations The effects ofthesedifferences areasfollows: requires thatdeferredtaxprovisionsbemadeinrespectofthesetemporarydifferences. and fairvalueadjustmentsarisingfrombusinesscombinations,whereasMASBStandardNo.25 requires thatdividendsdeclaredorproposedafteryearendbeaccountedforinthefollowingyear. Malaysian AccountingStandardBoard(“MASB”)No.19–“EventsaftertheBalanceSheetDate”, requires dividendsproposedinrespectofthatyeartoberecognisedatbalancesheetdatewhereasthe (continued) 2,234,048 2,166,613 1,835,590 1,764,306 110,958 112,854 RM’000 71,284 71,284 (1,896) (3,849) (24.6) 526.1 533.7 2004 (1.0) 18.0 ru Company Group 1,904,031 1,825,970 1,646,281 1,568,220 265,468 265,468 RM’000 78,061 78,061 (20.5) 456.6 456.9 2003 20.2 – – – 1,457,713 1,386,429 1,137,321 1,066,037 Annual Report RM’000 71,284 71,284 T ANJONG PUBLICLIMITEDCOMPANY 368.1 350.1 2004 18.0 – – – – – – & Financial Statements2004 1,479,388 1,401,327 1,231,553 1,153,492 RM’000 78,061 78,061 382.1 361.9 2003 20.2 – – – – – – 95 Financial Statements Financial Statements 96 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 7 ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements

January 2004 MALAYSIAN ACCOUNTINGREQUIREMENTS b Otheradditionaldisclosures (b) & Financial Statements2004 i Cashflow statementdisclosures inaccordance withMASB5 (i) requirements intheforegoingnotes. This notecontainsadditionaldisclosuresforwhichithasbeenimpracticaltointegratedisclosure Investing activities Operating activities prepared in accordance with MASB 5. MASB with prepared inaccordance is different underbothaccountingstandards.We setoutbelowaStatementofCashFlowwhichis are similartotherequirementsunderMASB5“CashFlowStatements”,classificationofcashflow Standard (“FRS”)1(Revised1996)“CashFlowStatements”.AlthoughtheaimsandprinciplesofFRS1 T anjong plcpreparesitsprimarycashflowstatementsinaccordancewiththeUKFinancialReporting Disposal ofcurrentassetinvestments Net cash(outflow)/inflowfrom Purchase ofcurrentassetinvestments Long terminvestments Repayment fromajointventure Net investmentinan Acquisition ofminorityinterests Construction ofapower – – Property, plantandequipment Net cashflowfrom Malaysian andothertaxespaid Interest received Interest paid Dividends receivedfrom Cash from/(utilisedin) Cash paidtosuppliers Cash receiptsfromcustomers investing activities company associate company in asubsidiarycompany generation plant disposals additions operating activities current assetinvestments operations and employees oeA743,146 Note A (continued) (continued) (1,993,619) 2,736,765 (578,244) (267,804) (282,879) 574,385 RM’000 (23,577) (18,379) (18,121) (95,340) (99,603) 24,481 24,257 7,000 1,251 1,925 2004 (216) ru Company Group (1,848,411) 2,509,827 (477,186) (358,041) (106,376) 490,685 661,416 RM’000 (69,164) (44,907) (14,764) (82,388) 16,706 (3,561) 7,265 6,000 1,327 2003 (299) 285 126,641 124,416 RM’000 (2,526 (2,526) 5,645 2004 (894) 37 37 – – – – – – – – – – ) 166,214 161,280 RM’000 (1,536) (2,991) (2,991) 9,461 2003 – – – – – – – – – – – – 7 ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements

January 2004 MALAYSIAN ACCOUNTINGREQUIREMENTS b Otheradditionaldisclosures (continued) (b) i Cashflow statementdisclosures inaccordance withMASB5(continued) (i) Cash andcashequivalents urnytasaindfeecs5,350 Currency translation differences Increase/(decrease) incashand Cash andcashequivalents Financing activities Bank andcashbalances Short termdeposits aheuvlns395,249 cash equivalents – – Net cashflowfrom/(usedin) Advances tosubsidiarycompanies Dividends paidtominorityinterests Dividends paidtoshareholders Repayment ofborrowings Proceeds fromborrowings Proceeds fromdisposalofunexercised Issue ofordinaryshares at endoftheyear at startoftheyear financing activities share optionsbyasubsidiarycompany (continued) (continued) 1,035,296 1,019,448 1,035,296 (141,080) (492,827) 634,697 399,108 960,458 RM’000 15,848 72,557 2004 – – – ru Company Group (185,440) 634,697 620,899 634,697 150,975 480,376 137,476 379,225 RM’000 (99,832) 13,798 46,255 (3,961) 3,346 1,229 2003 – Annual Report (153,469) (221,992) (141,080) 257,762 256,730 257,762 346,837 RM’000 (95,314) 72,557 T ANJONG PUBLICLIMITEDCOMPANY 1,032 6,239 2004 – – – – & Financial Statements2004 (135,727) 346,837 346,530 346,837 313,730 RM’000 (82,150) (99,832) 30,487 46,255 2,620 2003 307 – – – – 97 Financial Statements Financial Statements 98 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 7 ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements

January 2004 MALAYSIAN ACCOUNTINGREQUIREMENTS b Otheradditionaldisclosures (continued) (b) & Financial Statements2004 i Cashflow statementdisclosures inaccordance withMASB5(continued) (i) Cash from/(used in) operations Cash from/(used Adjustments for: Profit forthefinancialyear Note A:Cashfrom operations –C – – Changes inworkingcapital Other items Minority interest T – – Share ofresults Provision forinter-company advances Amortisation ofintangibleassets –i – Property, plantandequipment Net investment(income)/charge Net interestexpense axation Debtors, receivablesandprepayments Inventories joint venturecompany associate company depreciation mpairment reditors, payablesandaccruals (continued) (continued) (108,626) 743,146 173,415 178,533 405,481 RM’000 (20,131) 11,286 95,360 (1,514) (3,558) 9,065 3,776 2004 (112) 169 2 – ru Company Group 6,1 ( 661,416 159,052 127,350 323,119 RM’000 (75,950) (22,130) 66,852 39,197 43,424 (3,664) 3,775 2003 (243) (269) 112 791 – (171,961) 118,133 RM’000 44,268 2,526) 5,645 1,058 2004 331 – – – – – – – – – (216,656) 153,238 RM’000 59,384 (2,991) 1,124 2003 (55) (26) – – – – – – – – – Profit onordinaryactivities maretls ––––19–169 – 169 – 317,343 – 182,309 – – 52 – – 70 – 888 1,861 4,119 (2,404,375) (5,696) 4,299 (2,993) 3,691,037 311,241 6,227 54,704 (174,785) 7,595 (33,704) 170,895 (89,179) Impairment loss 481,647 Depreciation andamortisation (121,263) (2,098,018) Capital expenditure 73,316 53,434 To Unallocated liabilities 3,020,341 Segment liabilities (8,702) T (12,518) Unallocated assets 668,363 – Joint ventureandassociates Segment assets At 31January2004 – Profit forthefinancialyear (2,113) Minority interests (8,702) 32,542 Profit onordinaryactivities – T (7,682) (108,745) 180,512 – – 2,677,171 465,104 Share ofoperatingresultsin 39,21843,216 Interest onborrowings Unallocated costs – 1,555,65420,117 Unallocated income Operating profit/(loss) 1,018,966 Results External turnover Inter-segment elimination ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements T Tu Y otal assets axation tltroe ,1,6 ,5,5 0174,2 326–2,685,873 – 43,216 47,920 20,117 1,555,654 1,018,966 otal turnover ear ended31January2004 after taxation before taxation joint ventureandassociates r tal liabilities

nover January 2004 MALAYSIAN ACCOUNTINGREQUIREMENTS b Otheradditionaldisclosures (continued) (b) i)Segmentalinformationdisclosures inaccordance with MASB22 (ii) separate disclosuresofanumberotheritemswhicharesetoutbelow: of theturnover, operatingprofitandthenetassetsofsegmentswhereasMASB22requires applicable toalllistedcompaniesincorporatedintheUnitedKingdom.SSAP25requiresdisclosures Statement ofStandardAccountingPractice(“SSAP”)Number25“SegmentalReporting”whichis The Group’s disclosureofsegmentalinformationhasbeenbasedontherequirementsdetailedin eeainNOROIvsmn P tesTotal Others LPG Investment RTO NFO Generation M00R’0 M00R’0 M00R’0 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 oe Property Power aasaChina Malaysia (continued) (continued) Annual Report T ANJONG PUBLICLIMITEDCOMPANY 60446,034 46,034 879 (8,709) (8,709) & Financial Statements2004 (2,546,964) 4,826,431 1,091,540 (173,415) (142,589) 587,961 405,481 414,546 43,854 (9,065) 3,536 99 Financial Statements Financial Statements 100 Annual Report T ANJONG PUBLICLIMITEDCOMPANY emn iblte 16072 6,9)(082 1644 581 115 (1,886,496) (1,125) (5,831) (186,404) (20,852) (61,492) (1,610,792) Segment liabilities Profit onordinaryactivities maretls 1 112 – 112 – 514,660 – – 131,125 – 112 – 31,155 – 306 31,155 – 854 2,864 8,402 4,329 502,976 6,896 3,287,669 2,753 119,046 8,266 Impairment loss Depreciation and amortisation 381,643 Capital expenditure 76,474 (59,906) To 50,373 Unallocated liabilities 2,768,160 T Unallocated assets (8,557) Joint ventureandassociates (13,812) – Segment assets 565,703 At 31January2003 – Profit forthefinancialyear – 2,455,522 Minority interests – (1,698) (8,557) Profit onordinaryactivities 29,004 43,002 T – 37,203 (2,200) (46,094) 201,283 20,942 – 339,314 1,421,526 Share ofoperatingresultsin Interest onborrowings 932,849 Unallocated costs Unallocated income – Operating profit/(loss) Results External turnover Inter-segment elimination T Tu Y ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements otal assets 2,464,079 – axation 43,002 45,760 20,942 1,421,526 932,849 otal turnover ear ended31January2003 on etr n soits3933,933 3,933 before taxation joint ventureandassociates after taxation r tal liabilities

nover January 2004 b Otheradditionaldisclosures (continued) (b) MALAYSIAN ACCOUNTINGREQUIREMENTS(continued) & Financial Statements2004 i)Segmentalinformationdisclosures inaccordance withMASB22 (continued) (ii) eeainNOROIvsmn P tesTotal Others LPG Investment RTO NFO Generation M00R’0 M00R’0 M00R’0 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 oe Property Power aasaChina Malaysia (continued) 56115,691 15,691 403 (4,053) (4,053) (1,964,344) 4,055,782 (159,052) 521,368 736,958 323,119 362,316 (77,848) (39,197) 7 ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements

January 2004 b Otheradditionaldisclosures (continued) (b) MALAYSIAN ACCOUNTINGREQUIREMENTS(continued) ii Employeebenefitsdisclosures inaccordance withMASB29 (iii) aur 0379 8 10 23 735 158 6 495 – 1,900 – – 3 (10) (49) (12) – 469 (160) 36 – (1,295) 68 – (354) 125 (1,626) (316) (12) 593 2,030 (53) 34 – – (12) – – – – (20) – (558) – – – – 1,256 183 – (326) 522 – 3,575 – (119) (371) 8.63 823 (13) – 7.91 8.97 59 (39) – 8.58 ’000 12 – – 9.09 23 1,039 – 6 October2003 7.88 (3,598) 8 January2003 – ’000 6.45 8.13 362 7 October2002 5.70 187 496 3 July2002 – 9 April2002 606 ’000 6.12 7 January2002 73 8.45 6.20 8 October2001 11 July2001 10.40 4,854 ’000 6 April2001 8.75 8 January2001 8.05 6 October2000 11 July2000 ’000 7 April2000 6 January2000 RM/share 6 October1999 31.1.2004 Y Grant date ESOS. TheESOSissettoexpireon17September2004. Set outbelowaredetailsofoptionsovertheordinarysharesCompanygrantedunder aur 0379 9 7 183 522 – 3,575 823 59 – 12 23 (83) (57) (7) 1,039 – – (5) 362 (669) – (113) 187 (41) 606 496 190 – (116) 73 (30) 527 4,327 993 (5) (95) (907) (6) (7) – – – – – – (170) 4,854 – – (215) – (2) (545) 7.91 190 (52) 8.97 – 8.58 175 (102) 42 – 9.09 – 1,987 118 – – 7.88 (2,844) 8 January2003 – 6.45 8.13 532 7 October2002 5.70 407 3 July2002 – 1,048 9 April2002 614 (10) 6.12 7 January2002 8.45 6.20 175 8 October2001 11 July2001 10.40 7,750 6 April2001 200 8.75 8 January2001 8.05 6 October2000 11 July2000 – 7 April2000 6 January2000 6 October1999 9.91 31.1.2003 Y 12 January2004 ear ended ear ended xrieA tr Atend Atstart Exercise rc fya rne xrie asdofyear Lapsed Exercised Granted ofyear price 288607(,2)(5)12,814 (251) (5,820) 6,037 12,848 6,091 (83) (8,870) 2,230 12,814 (continued) Number ofoptions Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 101

Financial Statements Financial Statements 102 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 7 ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements

January 2004 b Otheradditionaldisclosures (continued) (b) MALAYSIAN ACCOUNTINGREQUIREMENTS(continued) & Financial Statements2004 ii Employeebenefitsdisclosures inaccordance withMASB29(continued) (iii) Number ofshareoptionsvestedatbalancesheetdate ac 0292 02 .0–8.75 – 31.1.2004 5.70 8.75 – RM/share 10.20 5.70 – 9.25 10.10 – RM/share 9.40 March 2002 February 2002 Exercise date pi 021.0–1.057 10.40 – 5.70 11.30 – 10.00 April 2002 uy20 .5–1.057 9.09 9.09 – – 5.70 9.09 6.12 – 6.12 9.09 10.40 10.90 – – – 5.70 9.85 9.55 10.90 – 9.55 11.00 – 10.00 August 2002 July 2002 June 2002 May 2002 a 0393 00 .0–9.09 – 8.13 5.70 – 6.12 8.05 – 10.00 – 5.70 9.30 9.30 8.05 – 8.58 – 8.70 9.00 6.12 – 8.05 6.12 – 8.60 8.13 8.80 – 8.05 9.30 8.97 – 8.50 – – 8.95 6.20 8.70 8.97 – – 9.05 8.60 9.55 6.20 – – 8.85 9.00 9.70 – May 2003 9.00 April 2003 March 2003 February 2003 January 2003 December 2002 November 2002 October 2002 September 2002 uy20 .5–1.057 9.09 – 5.70 9.09 – 6.12 10.60 – 9.95 10.40 – 9.65 July 2003 June 2003 uut20 .0–1.061 8.97 – 6.12 10.10 – 9.80 August 2003 etme 0391 .561 8.97 – 6.12 9.85 – 9.15 September 2003 hr rmu 83744,186 68,307 2,069 59,979 93,433 4,250 46,255 72,557 Fair valueatexercise dateofsharesissued Proceeds receivedonexercise ofshareoptions 9.09 10.40 Share premium – – 5.70 7.88 Ordinary sharecapital–atpar 11.70 10.90 – – 9.55 10.50 November 2003 October 2003 aur 041.0–1.061 10.40 – 6.12 10.40 – 6.12 11.40 – 10.80 11.10 – 10.80 * Thisrepresentsthemarketpriceofsharesatissue date January 2004 December 2003 hr su aeEecs rc Year ended Exercise price share issue date fsae t’000 of shares at (continued) arvle Numberofshares issued Fair value* Y ear ended 31.1.2004 31.1.2004 RM’000 1,607 2,041 8,815 1,441 1,126 6,091 577 773 244 159 693 ‘000 82 11 61 – – – – – – – – – – – – Y Y ear ended ear ended 31.1.2003 31.1.2003 31.1.2003 RM’000 10,460 1,323 1,538 1,026 5,828 ‘000 917 105 222 494 95 18 15 35 40 – – – – – – – – – – – – 7 ADDITIONALDISCLOSURESONDIFFERENCESBETWEENUNITEDKINGDOMAND 27. 31 Notes totheFinancialStatements

January 2004 MALAYSIAN ACCOUNTINGREQUIREMENTS d Definitionofother terms (d) Glossary (c) tcsInventories Quoted We Allowancefordoubtfuldebts Netprofitfortheyear Jointlycontrolledentity Sharecapital Gainondisposal ofmarketablesecurities Tu T IncomeStatement Surplus onrealisationofcurrentassetinvestments Receivables,depositsandprepayments Stocks Non-currentinvestments Retainedearnings Dividendspaidtoshareholders Reconciliation ofmovementsinshareholders’funds Shareholders’equity Payables Provision fordoubtfuldebts Profit forthefinancialyear Issued Profit andLossAccount(Statement) Accruedexpenses Profit andLossAccount(BalanceSheet) Paid upsharecapital Listed Joint venture Fixed assetinvestments Currentliabilities Cashfromoperations Non-currentliabilities Equity shareholders’funds Equity dividendspaid Debtors Creditors: Amountsfallingduewithin1year Creditors: Amountsfallingdueafter1year Creditors Cash flowfromoperatingactivities Allotted Accruals Te glossary ofthesetermsforeasecomparison. from thetermsusedinapprovedAccountingStandardsapplicableMalaysia.We appendbelowa are, asrequiredunderthelawsandregulationsapplicableinUK,basedonUKGAAPwhichdiffers As theCompanyisincorporatedinUnitedKingdom(“UK”),termsusedfinancialstatements hr rmu con Amountssubscribedforsharecapital inexcess NTA dividedbythenumberofsharesinissue Calculated asequityshareholders’fundsless Share premiumaccount Net tangibleassetspershare Net tangibleassets(“NTA”) nil ie sesProperty, plantandequipment angible fixedassets m sdi hsrpr Malaysian equivalentorbriefdescription rms usedinthisreport nvrSales/Revenues rnover n eevsStatementofchangesinequity and reserves

set outbelowthedefinitionofothertermsusedin financialstatements (continued) (continued) of nominalvalue intangible assets Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 103

Financial Statements Additional Compliance Information 104 Annual Report T ANJONG PUBLICLIMITEDCOMPANY .STATUTORY DECLARATION 3. NON-STATUTORY AUDITFEES 2. MATERIAL CONTRACTS 1. Requirements. The followinginformationisprovidedincompliancewithPartAofAppendix9CtheBursaMalaysiaListing A dditional ComplianceInformation COMMISSIONER FOROATHS ) Before me, on 30April2004 ) at KualaLumpurWilayahPersekutuan ) ) SELVAM N@GERARDA/LT.N. NATHAN Subscribed andsolemnlydeclaredby 1960 ofMalaysia. conscientiously believingthesametobetrue,andbyvirtueofprovisionsStatutoryDeclarationsAct, pages 53to103are,thebestofmyknowledgeandbelief,correctImakethissolemndeclaration of Tanjong publiclimitedcompany, dosolemnlyandsincerelydeclarethat the financialstatementssetouton I, SELVAM N@GERARDA/LT.N. NATHAN, beingthe personprimarilyresponsibleforthefinancialmanagement OF BURSAMALAYSIA PURSUANT TOPARAGRAPH 9.41OFTHELISTINGREQUIREMENTS These aredisclosedindetailonpage68oftheFinancialStatements. subsisting asat31January2004orsincetheendofpreviousfinancialyearended2003. subsidiaries intheprecedingtwoyears,involvingDirectors’andmajorshareholders’interests,eitherstill There werenomaterialcontractsoutsidetheordinarycourseofbusiness,enteredintobyTanjong plcorits & Financial Statements2004 SELVAM N@GERARDA/LT.N. NATHAN Notes: T 001t 0,0 5 .12,8,5 5.04 3.66 7.0120,088,756 0.97 45.453,895,242 42.8114,583,991 654 shares 4,238 3,991 shares (2) shareholders (1) shareholders 19,938,356 100,000 to 10,000 1000 to to to 100,001 10,001 1,001 100 1t Size ofshareholdings £33,750,000comprising450,000,000sharesof7.5penceeach 398,767,136 £29,907,535 : : 7.5pence : : V Nominal valueofshare Issued andPaidup Shares inissue Authorised Share Capital As at30April2004 Analysis ofShareholdings tes– – – – – 70.52 0.02 15.59281,228,311 – 0.68 99,688 1,454 22.70 0.40 2,713,400 36.73 0.4887,634 0.02 0.01 0.55 7.28146,457,010 90,514,369 1,580,400 7,58281.32 63.25 22,630,968 2.42 5.68 0.11 92.24252,222,492 1 45 51 679 226 8,600 10 T Others Nominees Government Agencies/Institutions Industrial andCommercialCompanies Investment Trusts/Foundation/Charities Banks/Finance Companies Individuals Category ofshareholders T Others UK Malaysia Location ofshareholders 19,938,357 otal otal otal tn ih One(1)votepershare : oting right 5% andaboveoftheissuedsharecapital less than5%oftheissuedsharecapital (2) n bv .3 4,8,2 36.71 146,388,320 0.03 3 and above o9 9 (1) o f%o . ec issued 7.5pence %of No. of ,2 0.0387716 100.00 100.00398,767,136 9,324 ,2 0.0387716 100.00 100.00398,767,136 9,324 100.00 100.00398,767,136 9,324 6 1.771,688 0.00 165 7 .3238919 53.62 2.93213,809,139 273 Annual Report o f%of No. of T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 105

Analysis of Shareholdings Analysis of Shareholdings 106 Annual Report T ANJONG PUBLICLIMITEDCOMPANY o aeo hrhlessae edissuedshares shares held Nameofshareholders No. List of30LargestShareholders asat30April2004 As at30April2004 Analysis ofShareholdings 6 SCNmne Aig d h ,9,0 0.80 0.94 3,190,000 0.99 3,743,800 1.00 3,942,500 1.08 4,000,000 1.25 4,300,000 4,996,900 1.26 HSBCNominees(Asing)SdnBhd 5,042,800 16. HSBCNominees(Asing)SdnBhd 15. HSBCNominees(Asing)SdnBhd 14. HSBCNominees(Asing)SdnBhd 13. CartabanNominees(Asing)SdnBhd 12. HSBCNominees(Asing)SdnBhd 11. CartabanNominees(Asing)SdnBhd 10. .Pnlmwr d.Bd ,0,0 1.61 2.16 6,406,000 8,596,000 2.17 3.28 8,656,000 2.21 13,061,800 4.08 15.63 7.61 8,818,000 62,344,000 16,271,016 13.46 30,356,320 PanglimawiraSdn.Bhd. 9. MacroniagaSdn.Bhd. 53,688,000 8. CartabanNominees(Tempatan) SdnBhd 7. MalaysiaNominees(Tempatan) SendirianBerhad 6. HSBCNominees(Asing)SdnBhd 5. DB(Malaysia)Nominee(Asing)SdnBhd 4. CimsecNominees(Tempatan) SdnBhd 3. CartabanNominees(Tempatan) SdnBhd 2. UsahaTegas SdnBhd 1. Natexis forComgestNouvelleAsie Capital InternationalEmergingMarketsInvestmentFund Abu DhabiInvestmentAuthority Natexis forMagellan Credit AgricoleInvestorServicesBankLuxembourgforComgestAsia Asian GrowthFund CMBLSA forFranklinTempleton InvestmentFunds-Templeton for GovernmentofSingapore(C) Government ofSingaporeInvestmentCorporationPteLtd Pledged SecuritiesAccountforUsahaTegas SdnBhd Great EasternLifeAssurance(Malaysia)Berhad(Par1) Emerging MarketsGrowthFund BNP ParibasNomineesSingaporePteLtdforMarlestoneInvestments Ultimate CorporationSdnBhd Pledged SecuritiesAccountforUsahaTegas ResourcesSdnBhd & Financial Statements2004 (continued) oo . ec %of No.of 7.5pence 7 ogLogAsrneBra ,5,0 0.79 issuedshares shares held 3,150,000 HongLeongAssuranceBerhad 17. Nameofshareholders No. List of30LargestShareholders asat30April2004(continued) As at30April2004 Analysis ofShareholdings 9 SCNmne Aig d h ,3,0 0.44 0.43 0.47 1,737,800 1,734,100 1,877,000 0.49 0.52 0.53 0.57 1,944,000 2,093,000 2,117,900 0.60 2,285,700 2,393,400 0.62 MaybanNominees(Tempatan) SdnBhd 30. HSBCNominees(Asing)SdnBhd 29. 0.61 EmployeesProvidentFundBoard 2,454,000 28. 0.63 PBSecuritiesNominees(Tempatan) SdnBhd 27. 0.68 2,443,600 2,507,000 0.64 CartabanNominees(Asing)SdnBhd 26. 2,702,700 HSBCNominees(Asing)SdnBhd 25. 2,567,000 HSBCNominees(Asing)SdnBhd 24. HSBCNominees(Asing)SdnBhd 23. MalaysiaNominees(Tempatan) SendirianBerhad 22. HSBCNominees(Asing)SdnBhd 21. CiticorpNominees(Tempatan) SdnBhd 20. AmanahRayaNominees(Tempatan) SdnBhd 19. HSBCNominees(Asing)SdnBhd 18. T (N14011940100) Mayban Trustees BerhadforPublicRegular SavingsFund TNTC forGovernmentofSingaporeInvestmentCorporation PteLtd Impian Tegap SdnBhd for MonetaryAuthorityofSingapore(J) Government ofSingaporeInvestmentCorporationPteLtd Delaware PooledTrust, IncfortheEmergingMarketsPortfolio MSCOIL FORARNAsianEnterpriseFundLimited HSBC BKPlcforPrudentialAssuranceCompanyLtd Great EasternLifeAssurance(Malaysia)Berhad(Par2) Stichting PensioenfondsABP Prudential AssuranceMalaysiaBerhad(ParFund) Public GrowthFund JPMCB forStichtingEmergingMarketsPVFI As BeneficialOwner(LifePar) otal (continued) oo . ec %of No.of 7.5pence 6,2,3 67.55 269,420,336 Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 107

Analysis of Shareholdings Analysis of Shareholdings 108 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Usaha Tegas ResourcesSdnBhd Ananda KrishnanTatparanandam PanOcean ManagementLimited Excorp HoldingsN.V. x)Thepercentageisbased ontheissuedsharecapital oftheCompanyasat30April 2004. (xi) This representstheinterests ofFidelityInternationalLimited anditsdirect indirectsubsidiaries. (x) – ThisrepresentstheinterestsofCapital GroupInternational,Inc.whicharisesbyvirtueof holdings attributed (ix) ThisrepresentstheinterestsofTheCapital GroupCompanies,Inc.whicharisesbyvirtueofholdings attributed (viii) – (vii) Theindirectinterestisheldthroughanominee. (vi) AnandaKrishnanTatparanandam’s deemedinterestarisesthroughhisinUsahaTegas SdnBhd (v) 5.56 ExcorpHoldingsN.V. isinturnownedbyPanOceanManagement Limited(“PanOcean”).PanOceanisthe (iv) 22,189,100 DeemedinterestarisesthroughitsdirectcontrollinginPacificStatesInvestmentLimited.Pleaserefer (iii) (ii) Theinterestsdisclosedincludethoseofitswholly-ownedsubsidiary, UsahaTegas Resources SdnBhdandare (i) Notes: Fidelity InternationalLimited Capital International,Inc. Capital GroupInternational,Inc. Khoo Teik Chooi Marlestone InvestmentsLimited Ultimate CorporationSdnBhd The CapitalGroupCompanies,Inc. Khoo Teng Bin Usaha Tegas SdnBhd Name ofSubstantialShareholders are asfollows: as at30April2004basedontheRegisterkeptpursuanttoSection211ofUnitedKingdomCompaniesAct,1985 The substantialshareholdersofTanjong andtheirrespectivedirectindirectinterestsinthesharesofTanjong Substantial Shareholders asat30April2004 As at30April2004 Analysis ofShareholdings Pacific StatesInvestmentLimited to itssubsidiaries. to itsaffiliates. interest inUltimateCorporationSdnBhdandadirect in320,000sharesand180,000respectively. Khoo Teik ChooiandKhooTeng Bineachhasanindirectinterestin30,356,320shareswhicharisesfromtheirdeemed Although heisdeemedtohaveaninterest,doesnot haveanyeconomicorbeneficialinterestintheshares. which arisesbyvirtueoftrustandrelatedarrangements withPanOcean.PleaserefertoNote(iv)above. to Note(iii)above. have aninterestintheshares,itdoesnotanyeconomic orbeneficialinterestintheshares.Pleaserefer T trustee ofadiscretionarytrust,thebeneficiarieswhich aremembersofthefamilyAnandaKrishnan to Note(ii)above. Deemed interestarisesthroughitsdirectcontrollinginUsahaTegas SdnBhd.Please refertoNote(i)above. held throughnominees. atparanandam andfoundationsincludingthoseforcharitable purposes.AlthoughPanOceanisdeemedto & Financial Statements2004 vii vii iii i x vi vi vi iv ix ii v viii (continued) hrshl share shares held 234001.36,4,0 15.63 62,344,000 15.63 62,344,000 . ec sud . ec issued 7.5pence issued 7.5 pence 8,0 .53,5,2 7.61 7.61 30,356,320 30,356,320 0.05 0.08 180,000 320,000 o f%o o f%of No.of %of No. of –– –– –– –– –– –– –– –– –– –– ietIndirect Direct xi 2,8,0 31.26 31.26 31.26 31.26 124,688,000 124,688,000 124,688,000 124,688,000 hrshl shares shares held 299003.25 5.59 5.59 12,969,000 4.08 22,278,100 7.61 22,278,100 13.46 16,271,016 30,356,320 53,688,000 xi • • • Based ontheRegisterofDirectors’InterestskeptpursuanttoSection325UnitedKingdomCompaniesAct,1985: Directors’ Interests asat30April2004 As at30April2004 Analysis ofShareholdings Khoo Teik Chooi Augustus RalphMarshall Name ofDirectors Khoo Teik Chooi are asfollows: The interestsoftheDirectorsinoutstanding T None oftheDirectorshasanyinterestinsharesoroptions ofthesubsidiarycompaniesGroup. Thepercentageisbasedontheissuedshare capital oftheCompanyasat30April2004. (d) KhooTeik ChooiandTan PohChingceasedasExecutiveDirectorsand continuedasNon-ExecutiveDirectors (c) KhooTeik Chooihasanindirectinterestasto (b) These (a) right totheDirectorssubscribefornewsharesinCompany. No. 2(“ESOS”)andareexercisableuptotheexpiryofESOSon17September2004.Theoptionsgranta The optionsweregrantedon6October1999pursuanttotheTanjong plcEmployees’Share OptionScheme T follows: The interestsoftheDirectorsin an PohChing an PohChing with effect from1April2003andMayrespectively. Ultimate CorporationSdnBhd. 520,000 (c) (c) (c) (b) (c) shares areheldthroughanominee. (a) shares (continued) of theCompany(bothdirectandindirect)asat30April2004are Options overunissuedshares of7.5penceeach(“OptionShare”) hrshl share shares held options . ec sud . ec issued 7.5pence issued 7.5 pence 7,0 .4–– – 7.61 30,356,320 0.04 0.08 170,000 320,000 rc e pinSaeNo.ofOptionShares Price perOptionShare o f%o o f%of No.of %of No. of 30,356,320 over unissuedsharesoftheCompanyasat30April2004 –– M.5350,000 200,000 RM8.05 RM8.05 ietIndirect Direct shares whicharisesfromhisdeemedinterestin (d) hrshl shares shares held Annual Report 2,0 0.13 520,000 T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 (d) 109

Analysis of Shareholdings List of Properties 110 Annual Report T ANJONG PUBLICLIMITEDCOMPANY Mukim ofHulu Kinta,Ipoh,Perak Complex) area– Station Built-up 72,745 470,000* (Power 702,518sq.ft. expiringon area– Grossfloor 21.4acres 5years 9months 3years 2,130sq.ft. RM’000 705 Landarea– Landarea– 1.069acres 99years, building Industrial building 19years Office 16-Apr-1994 24-Dec-2003 (Leasehold Melaka (Freehold) size District ofAlorGajah Built-up Mukim ofKualaSungeiBaru area– Lot PT349H.S.(D)3520 Residential apartment Wilayah Persekutuan use Bandar KualaLumpur 4-Oct-1993 (Freehold) Daerah KualaLumpur No. Hakmilik:43696 Seksyen 58 (Tenure) Lot 168 Kuala Lumpur UBN Apartments Unit 15-D3 H.S.(D) 76902 Lot PT19 Malaysia Location As at31 January2004 List ofProperties ea 49,LtN.1574My19 adcsLn ra–6yas6,151 6years 176acres Landarea– buildings Geran 11481,LotNo.19229 Paddocks Geran 11739,LotNo.18477 (Freehold) C.T. 2964,LotNo.18472 4-May-1994 Geran 23986,LotNo.18367 Geran 23975,LotNo.15702 Geran 24492,LotNo.14577 eaaae Staff area– 10years 6– Built-up 13,770 Complex– PowerStation Complex) 17.3acres Landarea– Industrial area– Station 2-Feb-1999 expiringon 9,519 2.8acres (Freehold) Vacant land Built-up (Power Melaka 145,840 District ofMelakaTengah Landarea– expiringon 99years, 42.9acres Mukim ofTanjong Kling Lot No.2191 Industrial 9years (Leasehold 16-Apr-1994 Melaka District ofAlorGajah Landarea– 99years, Mukim ofSungeiBaruIlir Lot PT1890H.S.(D)7333 Industrial (Leasehold 16-Apr-1994 Melaka District ofAlorGajah Mukim ofSungeiBaruIlir Lot PT1889H.S.(D)7332 & Financial Statements2004 custo/DsrpinApoiaevalue Approximate acquisition/ Description r vlaino xsigApoiaeaeo @31.1.04 ageof Approximate ofexisting evaluation 20/09 186,800sq.ft. 22/03/2099) 83,400sq.ft. 22/03/2099) 27/10/2093) aeo Netbook Date of 1,0 q t Residential 117,000 sq.ft. Quarters – 45years + + atr ie2-e-99Jty ln adae 5years 15.261acres Landarea– &office Jetty, plant # 28-Dec-1999 7years + 30/11/2036) (Land * area– 4,066sq.ft. expiringon useright, apartments People’s RepublicofChina Built-up Fuel Tank, Wuhu, Anhui 6years North toWuhu FuelCo. Residential 25/12/2037) (Land Siheshan Riverside 12-Sep-1997 Factory Site Landarea– 18.302acres People’s RepublicofChina useright, Jetty, plant W 31/3/2047) expiringon Block 1,Unit2,No302&502 9-Mar-1998 &office Ping AnSanJuang No. 64Tuan JieLu 49 People’s RepublicofChina (Land Plot 44-06-09,Taixing Development Zone RM’000 T Xingang RoadWest Side 931 Vacant Factory Site land building People’s RepublicofChina expiringon Landarea– 0.4acres Vacant land size Industrial 28-May-2002 Landarea– 99years, 6.0acres use Industrial 22-Sep-2000 (Leasehold Melaka District ofAlorGajah (Tenure) Mukim ofKualaSungaiBaru Lot PT535 (Freehold) Melaka District ofAlorGajah Mukim ofKualaSungaiBaru Lot No.490 Malaysia (continued) Location As at31 January2004 List ofProperties ahn on2-e-97RsdnilBitu 9years Built-up Residential 23-Sep-1997 W #3-6&7 JingchengVilla No. 22Tonjiang Road W Y Dasheng Town Outside Malaysia iigEooi use right, aixing Economic nigVlae(reod os area– house (Freehold) anling Village est Wing,Taixing nb lt3,240sq.ft. angba Plot h,Ahiexpiringon uhu, Anhui referred toinNote2(b)onpage 68 The netbookvalueoftheproperties outsideMalaysiaat31January2004wasnildue totheimpairmentprovision Both thepowerstationcomplexes arelocatedadjacenttoeachotherontheselandtitles Stated atvaluationbalance sheetdate(MenaraMaxis) # (continued) custo/DsrpinApoiaevalue Approximate acquisition/ Description r vlaino xsigApoiaeaeo @31.1.04 ageof Approximate ofexisting evaluation 27/05/2101) aeo Netbook Date of Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 111

List of Properties Notice of Seventy-Seventh Annual General Meeting 112 Annual Report T ANJONG PUBLICLIMITEDCOMPANY 2 To approvethe (2) To (1) Oriental, KualaLumpur, KualaLumpurCityCentre, 50088KualaLumpur, Malaysia (“Company”) willbeheldat NOTICE ISHEREBYGIVEN Notice ofSeventy-SeventhAnnualGeneralMeeting (Registered asaforeigncompanyinMalaysia–CompanyNo.990903-V) (Incorporated inEngland1926-RegistrationNo.210874) T 3 To declarea (3) Malaysia 50088 KualaLumpur Kuala LumpurCityCentre Level 30,MenaraMaxis 2 June2004 Group CompanySecretary Siuagamy Ramasamy BY ORDEROFTHEBOARD To transactanyotherbusinessofwhichduenoticeshallhavebeengiven inaccordancewiththeUnited (6) To re-appoint (5) To re-elect (4) ANJONG 50 oftheAnnualReport. year ended31January2004 Kingdom CompaniesAct,1985. their remuneration. Association. the Company’s ArticlesofAssociation,asDirectortheCompanypursuanttoArticle74 respect oftheyearended31January2004. & r eceive Financial Statements2004 public limitedcompany Augustus RalphMarshall the final gross dividendof25.0senpershare PricewaterhouseCoopers LLP Annual Report Directors’ RemunerationReport that theSeventy-SeventhAnnualGeneralMeetingof 11.00 a.m. and the and , aDirectorwhoretiresbyrotationinaccordancewithArticles76and77of audited financialstatementsoftheCompany Reports oftheDirectors andAuditors on W dedy3 ue20 tteEmeraldRoom,Level1,Mandarin atthe ednesday 30June2004 as AuditorsoftheCompanyandtoauthoriseDirectorsset for theyearended31January2004,assetoutonpages46to of 7.5penceeach esMlyinIcm a at28% less MalaysianIncomeTax T ANJONG PUBLICLIMITEDCOMPANY thereon. for thefollowingpurposes: and oftheGroupfor in .Re-appointmentofAuditorsand settingoftheirRemuneration(Resolution5) 7. Retirement andRe-electionofDirector(Resolution4) 6. FinalDividend(Resolution3) 5. Directors’RemunerationReport(Resolution2) 4. AnnualReportandauditedfinancialstatements(Resolution1) 3. .AdditionalInformation 2. Proxy 1. NOTES Notice ofSeventy-SeventhAnnualGeneeralMeeting to settheirremuneration. proposed inordertore-appoint PWCastheCompany’s Auditorsfortheensuingyearandtoauthorise theBoard LLP Company isrequiredtoappoint independentauditorstoserveuntilthenextsuchmeeting. PricewaterhouseCoopers At everygeneralmeeting at whichfinancialstatementsarepresentedtotheCompany’s shareholders,the page 5oftheAnnualReportandFinancialStatements 2004. re-election attheAGMpursuanttoArticle74ofArticles. TheprofileofAugustusRalphMarshallisgivenon to Articles76and77oftheCompany’s ArticlesofAssociation (the “Articles”).Hethereforesubmitshimselffor retirement byrotationattheSeventy-SeventhAnnualGeneral MeetingoftheCompany(the“AGM”)pursuant Augustus RalphMarshall,theDirectorwhohasbeen longest inoffice sincehislastre-election,issubjectto record oftheCompanyasatclosebusinesson9 July 2004. the yearended31January2004which,ifapproved,will bepaidon2August2004tothoseshareholdersthe recommend afinalgrossdividendof25.0senpershare of7.5penceeachlessMalaysianIncomeTax at28%for The CompanymayonlypayafinaldividendaftertheCompany’s shareholdershaveapprovedit.TheDirectors Statements 2004. the Directors’RemunerationReportwhichissetoutonpages46to50ofAnnualandFinancial review andtosubmitthatreportshareholdersforapproval.Accordingly, Resolution2isproposed toapprove Directors oftheCompanyarerequiredtoprepareadirectors’remunerationreportforfinancialyearunder Pursuant totheUnitedKingdomDirectors’RemunerationReportRegulations2002(the“Regulations”), the independentauditors’reporttoCompany’s shareholdersatageneralmeeting. For eachfinancialyear, theDirectorsmustpresentDirectors’Report,auditedfinancialstatementsand of theListingRequirementsBursaMalaysiaisattachedheretoas A statementaccompanyingthisnoticewhichincludestheadditionalinformationrequiredunderAppendix8A d TheFormofProxy, dulycompleted,mustbedepositedattheCompany’s PrincipalOffice atLevel30,Menara (d) Aninstrumentappointingaproxyshallbeinwritingunderthehandofappointororhisattorneyduly (c) AproxyneednotbeamemberoftheCompany. (b) AmemberoftheCompanyentitledtoattendandvoteisappointoneormoreproxies (a) from attendingandvotinginpersonatthemeetingshouldmembersubsequentlywishtodoso. appointed forthetakingofpoll.ThereturnacompletedFormProxywillnotprecludemember subsequently tothedateofmeetingoradjournedmeeting,notlessthan24hoursbeforetime 48 hoursbeforethetimefixedforholdingmeetingoradjournedmeeting,or, inthecaseofapolltaken notlessthan other authority(ifany)underwhichitissignedoracopyofsuchcertifiednotarially, Maxis, KualaLumpurCityCentre,50088Lumpur, Malaysia,togetherwiththepowerofattorneyor other persondulyauthorisedinthatrespect. authorised inwritingor, iftheappointorisacorporation,eitherunderitssealorbyanofficer, attorneyor Account whichitholds. Securities Industry(CentralDepositories)Act,1991mayappointatleastoneproxyinrespectofeach and voteinsteadofhim/heramemberwhoisanauthorisednomineeasdefinedintheMalaysian : (“PWC”) hassaidthatitiswilling tocontinueastheCompany’s Auditorsforanotheryear. Resolution5is Annexure A. (continued) Annual Report T ANJONG PUBLICLIMITEDCOMPANY & Financial Statements2004 113

Notice of Seventy-Seventh Annual General Meeting TANJONG PUBLIC LIMITED COMPANY 114 Annual Report & Financial Statements 2004 Annexure A

TANJONG public limited company (Incorporated in England 1926 - Registration No. 210874) (Registered as a foreign company in Malaysia – Company No. 990903-V) Statement accompanying Notice of Seventy-Seventh Annual General Meeting (“AGM”) of Tanjong public limited company (“Tanjong” or “Company”)

1. The name of the individual who is standing for re-election: Augustus Ralph Marshall

2. The details of attendance of Directors at Board meetings of the Company: During the financial year, 9 Board meetings were held.

Attendance Datuk Khoo Eng Choo – 9 meetings Augustus Ralph Marshall – 9 meetings Khoo Teik Chooi – 9 meetings Tan Poh Ching – 9 meetings Leong Wai Hoong – 9 meetings Ooi Boon Leong (retired on 1 April 2003) –3 meetings

3. The place, date and hour of the Seventy-Seventh AGM of Tanjong: Place : Emerald Room, Level 1 Mandarin Oriental, Kuala Lumpur Kuala Lumpur City Centre 50088 Kuala Lumpur Malaysia

Date & Time : 11.00 a.m. (Malaysian time) on Wednesday 30 June 2004

4. Further details of the individual who is standing for election as director:

(i) Name Augustus Ralph Marshall

(ii) Age 52

(iii) Nationality Malaysian

(iv) Qualification An Associate of the Institute of Chartered Accountants in England and Wales and a Member of the Malaysian Institute of Certified Public Accountants.

(v) Position in the Company Executive Director (since February 1992)

(vi) Working experience • Appointed a Director of Tanjong in August 1991. An Executive and occupation Director since February 1992. Responsible for providing direction in investment, financial and corporate structures, strategies and policies and decision making. • Has more than 26 years experience in financial and general management. TANJONG PUBLIC LIMITED COMPANY Annual Report & Financial Statements 2004 115

TANJONG public limited company (Incorporated in England 1926 - Registration No. 210874) (Registered as a foreign company in Malaysia – Company No. 990903-V) Statement accompanying Notice of Seventy-Seventh Annual General Meeting (“AGM”) of Tanjong public limited company (“Tanjong” or “Company”) (continued)

•Was appointed a Director of Usaha Tegas Sdn Bhd (“UT”) in 1992 and has been an active member of the management group responsible for developing and implementing the financial and corporate strategies of the UT Group and its affiliates including the following companies in which UT has significant interest and in which he serves primarily as a representative of the UT Group: – ASTRO ALL ASIA NETWORKS plc (“Astro”) (listed on the Bursa Malaysia), in which he is the Deputy Chairman (since August 2003) and Group Chief Executive Officer (since September 2003); (Astro is a leading cross-media company in Malaysia) – Maxis Communications Berhad (listed on the Bursa Malaysia) in which he is a Non-Executive Director (since June 1993); (Maxis is a leading mobile communications provider in Malaysia) –Arnhold Holdings Limited (listed on The Stock Exchange of Hong Kong Limited) in which he is a Non-Executive Director (since February 2002) (Arnhold is involved in contracting for the building and construction industry) • Has been a Non-Executive Director of MEASAT Global Berhad (“MGB”) (formerly known as Malaysian Tobacco Company Berhad) (listed on the Bursa Malaysia) since May 2002 (MGB is the operator of the MEASAT satellite network)

(vii) Any other directorship of a) Maxis Communications Berhad public companies* b) MEASAT Global Berhad *Only public companies (formerly known as Malaysian Tobacco Company Berhad) incorporated pursuant to the c) KLCC (Holdings) Berhad Malaysian Companies Act,1965 are included

(viii) The securities holdings in the Securities Holdings Number of Number of Company and its subsidiaries shares of shares of as at 30 April 2004 7.5 pence each 7.5 pence each Percentage (Direct) (Indirect) %

a) In the Company Nil 520,000** 0.13

b) In the subsidiary Nil Nil Nil

** Held through a nominee

(ix) The family relationship with Nil any director and/or major shareholder of the Company

(x) Any conflict of interest that There is no business arrangement with the Company in which he has he has with the Company has a personal interest

(xi) List of convictions for offences Nil within the past 10 years other than traffic offences, if any (only for penalties made public) THIS PAGE HAS BEEN LEFT BLANK TANJONG public limited company (Incorporated in England 1926 - Registration No. 210874) (Registered as a foreign company in Malaysia – Company No. 990903-V)

Form of Proxy for use by holders of ordinary shares at the Seventy-Seventh Annual General Meeting of the Company convened for 11.00 a.m. on Wednesday 30 June 2004

I/We, (FULL NAME OF MEMBER APPOINTING PROXY IN BLOCK CAPITALS) of (FULL ADDRESS IN BLOCK CAPITALS) hereby appoint the Chairman of the Meeting (see Note 2 below)

(FULL NAME OF PROXY IN BLOCK CAPITALS)

(FULL ADDRESS IN BLOCK CAPITALS) as my/our proxy to attend and vote for me/us and on my/our behalf at the Seventy-Seventh Annual General Meeting of the Company to be held at the Emerald Room, Level 1, Mandarin Oriental, Kuala Lumpur, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia on Wednesday 30 June 2004 at 11.00 a.m. and at any adjournment thereof.

I/We wish my/our proxy to vote as indicated below in respect of the resolutions to be proposed at the meeting. Please give instructions to your proxy by ticking the appropriate box alongside each resolution. (see Note 3 below)

Resolutions For Against Vote Withheld Discretionary (see Note 4 (see Note 5 below) below)

1. Receive the Annual Report and audited financial statements for the year ended 31 January 2004

2. Approve the Directors’ Remuneration Report for the year ended 31 January 2004

3. Declare a final gross dividend of 25.0 sen per share of 7.5 pence each less Malaysian Income Tax at 28% in respect of the year ended 31 January 2004

4. Re-elect Augustus Ralph Marshall as Director of the Company

5. Re-appoint PricewaterhouseCoopers LLP as Auditors of the Company and to authorise the Directors to set their remuneration

6. Any other business of which due notice shall have been given in accordance with the United Kingdom Companies Act, 1985 Signature of member Number of shares or officer or attorney (see Note 1 below) (see Note 6 below)

Date 2004

Notes:

1. A member of the Company entitled to attend and vote is entitled to appoint one or more proxies to attend and vote instead of him/her and a member who is an authorised nominee as defined in the Malaysian Securities Industry (Central Depositories) Act, 1991 may appoint at least one proxy in respect of each Securities Account which it holds. The number of shares to be represented by the proxy should be stated in the Form of Proxy. 2. If you wish to appoint as your proxy someone other than the Chairman of the Meeting, cross out the words “the Chairman of the Meeting” and write on the line the full name and address of your proxy. The change should be initialled. 3. In the absence of instructions, the person appointed as your proxy may vote or abstain from voting as he or she thinks fit on the specified resolutions and, unless instructed otherwise, the person appointed as your proxy may also vote or abstain from voting as he or she thinks fit on any other business (including amendments to resolutions) which may properly come before the meeting. A proxy may vote on a show of hands and on a poll. 4. The “Vote Withheld” option is provided to enable you to abstain on any particular resolution. However, it should be noted that a “Vote Withheld” is not a vote in law and will not be counted in the calculation of the proportion of the votes “For” and “Against” a resolution. 5. The “Discretionary” option is provided to enable you to give discretion to your proxy to vote or abstain from voting as he or she thinks fit on the specified resolutions. 6. This Form of Proxy must be signed and dated by the appointor or his/her attorney duly authorised in writing. If the appointor is a corporation, it may execute under its common seal or by the signature of an officer, attorney or other person duly authorised in that respect. In the case of joint holdings, any one holder may sign this form but the names of the other joint holders should be shown in the space provided at the top of this Form of Proxy. The vote of the senior joint holder who tenders a vote, whether in person or by proxy, will be accepted to the exclusion of the votes of the other joint holders and for this purpose seniority will be determined by the order in which the names stand in the Register of Members in respect of the joint holding. 7. To be valid, this Form of Proxy must be completed and deposited at the Company’s Principal Office at Level 30, Menara Maxis, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia, together with the power of attorney or other authority (if any) under which it is signed or a copy of such authority certified notarially, not less than 48 hours before the time fixed for holding the meeting or adjourned meeting, or, in the case of a poll taken subsequently to the date of the meeting or adjourned meeting, not less than 24 hours before the time appointed for the taking of the poll. 8. The return of a completed Form of Proxy will not preclude a member from attending and voting in person at the meeting should the member subsequently wish to do so.