A HN OO ODNSBERHAD HOLDINGS MOTOR CHONG TAN

TAN CHONG MOTOR HOLDINGS BERHAD (12969-P)

ANNUAL REPORT 2005

nulRpr 2005 Report Annual

RTS 18 May 2006 at 3:00 p.m. p.m. 3:00 at 2006 May 18 53000 KualaLumpur, on Malaysia Thursday, Pahang, Jalan 72 Hotel, Seasons Grand Ballroom, Grand the at held be will BERHAD HOLDINGS MOTOR TANCHONG of Meeting General Annual Thirty-Fourth Non-Executive Independent Nordin bin @ Abas Kamaruddin Haji Dato’ D Non-Executive Independent Cheong Mann Ng Dato’ Director Non-Executive Independent Chairman S Committee Audit Fatt Thiam Seow Nordin bin Abas @ Kamaruddin Haji Dato’ Cheong Mann Ng Dato’ Badrillah bin Azman Director Managing Group Soon Tan Eng Chairman Deputy Executive Chew TanDato’ Heng Chairman Vice Abdullah bin Ahmad Directors Corporate eow Thiam Fatt Thiam eow

www.nissan.com.my

DSSA,KMN

DSSA,KMN

JP,DJMK Directo

irecto DSSA, SMP, DSSA, JP SMP, DSSA, JP

r r

Information

Registrars [email protected] : 8636 4042 (03) E-mail : 8888 4047 Facsimile (03) : Telephone Lumpur Kuala 51200 Ipoh Jalan 62-68 Registered Lee YapBee Secretary Company (Listed on the Main Board on 4 February 1974) February 4 on Board Main the on (Listed Berhad Securities Malaysia Bursa Listin KPMG Auditors Facsimile ( : Telephone Lumpur Kuala 50400 TunJalan Razak Kampar, Off Jalan 20 Bhd Sdn TenagaKoperat th

ForPaaPraa Permata Plaza Floor g

6352 4042 (03) :

Address 03) 4041 6522 4041 03)

Business • • Property • • • Financial • • After • • • • Sales • Assembly Management and Investment and Management Lending Money Insurance Purchase Hire Workshop Parts Spare Buses Trucks Vehicles Commercial Light Cars Passenger Vehicles Motor - Sales Services Sales and Products and Services and Products Distribution

Divisions

Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 1 Annual Report 2005 2 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 2 Annual Report 2005 contributed to the commendable sales growth in the current year. current the in growth sales commendable the to contributed personnel and network sales after and sales Group’s the strengthening in commitment our line-up, products the Besides market. available Malaysian the variant in vehicle and of spread (SUT) wide truck fairly a utility amongst Sentra sports Nissan Frontier Nissan our marke for consistent demand a by competitive market driven was very volume a sales in despite increase The year environment. previous the from units units 28,085 to 24,448 15% by grew 2005 in sales vehicle Group’s The makes. former some of re-entrance and makes national vehicle non- and national motor the from models introduced robust newly by driven were sales The MAA). (source: or year Association previous Automotive the Malaysian in 487,605 from registrations 551,042 to improvement 13% remarkable a recording by further accelerated 2005 in Malaysia in registration vehicle motor new year, consecutive another For Highlights 2005. for Company the of and Group present to Motor pleasure Tanthe of Chong Statements my Financial and is Report Annual the it Directors, of Board the of behalf On Pengarah Lembaga Laporan Report

of the of

Board of Directors of Board t t menyumbang kepadapertumbuhan jualanyangbaikpadatahunini.menyumbang telah kakitangan serta jualan lepas dan jualan rangkaian memperkukuhkan dalam kami komitmen produk-produk, rangkaian daripada Selain Malaysia. pasaran di di luas agak Sentra yang bermotor Nissan kenderaan dan varian rebakan (SUT) kalangan Sukan Utiliti Trak sebuah Frontier, terhadap Nissan konsisten yang pasaran permintaan oleh dipacu jualan jumlah pada Peningkatan kompetitif. sangat adalah pasaran keadaan walaupun kepada 28,085 unit berbanding dengan 24,448 unit pada tahun sebelumnya 15% sebanyak meningkat telah Kumpulan bagi bermotor kenderaan Jualan serta negara luar kemasukan semulasesetengahbekaspengeluar. dan tempatan pengeluar-pengeluar oleh baru model Peningkatan penjualan kenderaan bermotor dipacu oleh pengenalan model- MAA).(sumber: atau sebelumnya Persatuan Malaysia tahun Automotif pada 487,605 dengan berbanding pendaftaran 551,042 kepada 13% baik sebanyak yang peningkatan mencatatkan telah 2005 tahun pada Malaysia di baru bermotor kenderaan pendaftaran berturutan, tahun lagi satu Untuk Penting Maklumat Syarikat Tan dan Chong Motor bagiKumpulan tahun 2005. Kewangan Penyata dan Tahunan Laporan Bagi pihak Lembaga Pengarah, saya dengan sukacitanya membentangkan

marginally increased to RM183.35 million from RM181.87 million million RM181.87 from cost. marketing higher to million due mainly 2004 in recorded RM183.35 to year the increased for tax before marginally Profit 2004. of year corresponding the during achieved that than was 24% higher billion of 2005 RM2.95 31 December ended year current the for revenue volume, sales higher with tandem In centres. 3S ETCM selected at enthusiasts sports motor and owners Nissan all to Malaysia available in operations NISMO’s of where during beginning the Malaysia in marked (NISMO) year the Motorsports Nissan of the holder as (ETCM) franchise Bhd Sdn Motor Chong Tan Edaran of appointment The satisfaction. customer total in heights greater achieve to performance. outstanding of our in recognition year Nissan consecutive second the for Co Ltd, Japan Motor by Award Way Service & Sales Nissan Global 2005 prestigious six to ownership. of two months first the in quality vehicle new measures which segment up f (IQS) Study Quality Initial Malaysia 2005 J. D.Pacific Power Asia respectively. In addition, our Nissan Frontier 4 x 4 model was 2005 ranked July No.1 and in 2005 June in released were which of reports the Pacific, AsiaPowerJ.D. byMalaysia conductedinstudies in process deliveryand secondconsecutive year, highestSalesSatisfactionin vehicleIndexinsales functions, CustomerSatisfaction after-salesinrankedNo.1 in Index supporting in those and as service well sales, as staff the of production dedication and work team continuous With Pengarah Lembaga Laporan the of Report genuine NISMO performance parts and merchandise are made made are merchandise and parts performance NISMO genuine

Board of Directors of Board Following these successes these Following

These awards will serve to motivate us further further us motivate to serve will awards These , we were awarded the the awarded were we , service and for a for serviceand Nissan was was Nissan or pick- or

RM183.35 juta berbanding RM181.87 juta pada tahun 2004 yang yang 2004 tahun pada juta olehkospemasaran yangtinggi.diakibatkan RM181.87 berbanding kepada juta sedikit meningkat RM183.35 ini tahun pada cukai sebelum Keuntungan 2004. sepadan tahun pada dicapai yang hasil dengan berbanding tinggi lebih 24% adalah bilion RM2.95 sebanyak 2005 Disember kewangan 31 berakhir tahun bagi hasil jualan, jumlah peningkatan dengan Sejajar ETCM3Syang terpilih. kenderaansukandipusat-pusat peminat dan Nissan kenderaan pemilik semua untuk ada sedia sudah berprestasi operasi awal NISMO di Malaysia, di mana dan bahagian barang niaga yang francais Nissan Motorsports (NISMO) di Malaysia pada tahun ini menandakan pemegang sebagai (ETCM) Bhd Sdn Motor TanChong Edaran Perlantikan memberi kepuasan kepada pelanggan secara keseluruhan. dalam kami pencapaian mempertingkatkan untuk kami motivasi sumber pengiktirafan prestasi cemerlang kami. Anugerah berprestij ini akan menjadi Award oleh Nissan Motor Co Ltd, Jepun untuk tahun kedua berturutan dalam dianugerahkanNissantelahGlobalini,kejayaan kami tempoh dua hingga enam bulan yang pertama selepas pemilikan. Berikutan untuk baru kenderaankualiti memantau yang segmen‘pick-up’ bagi (IQS) 2005 Pacific Asia Power D. J. Awal Kualiti Kajian di pertama kedudukan mendapat 4 x 4 Frontier Nissan model pula,Tambahanmasing-masing. Power Asia Pacific di Malaysia dan dilaporkan pada Jun 2005 dan Julai 2005 proses jualan dan bekalan kenderaan mengikut kajian yang dibuat oleh J.D. segi dari kedua (SSI) Jualan tahun Kepuasan Index bagi dalam tertinggi tempat dan berturutan, jualan lepas khidmat segi dari (CSI) Pelanggan Kepuasan sokongan Index dalam pertama fungsi tempat mendapat dalam Nissan membolehkan bertugas yang kakitangan serta pengeluaran K raaa a ddks drpd tng kra uln prhdaa dan perkhidmatan jualan, kerja tenaga daripada dedikasi dan erjasama Sales & ServiceWay & Sales 3 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 3 Annual Report 2005 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 4 Annual Report 2005 Laporan Lembaga Pengarah Lembaga Laporan the of Report X-Trail, Cefiro and Sentra. and X-Trail,Cefiro the of versions facelift new brand the and van 14-seater a versatile Urvan, Nissan the of introduction successful the saw also year The environment. to units compared in 21,853 year the in previous market a competitive very units 24,553 to growth 12% a with 2005 in well performed sales Nissan vehicles commercial light and passenger Nissan Results of Review plant. new this from out rolled and assembled be will up line models new Our 2007. of quarter second the in production for ready be to expected is it and commenced has plant new the for works Construction million. RM191 at estimated is plant the for cost project total the specification, equipment and design plant final the on Based Nissan. from processes assembly and technologies advanced the incorporate and of Co Motor Nissan Ltd. The Way new will meet plant Production the Nissan and assistance supervision close out with carried has been plant assembly new the for activities design and studies specification technical detailed Selangor. of Serendah, by in of the owned Group the acres land district The 47 of piece a on constructed be will which plant assembly new a in invest further will Group the production, in phase growth next the for up Togear Group. the of requirements production term near the meet to operations assembly in efficiency and quality product improve to efforts continuous Group’s the of part as Lumpur Kuala Segambut, in located plant its existing upgrade to million RM15 approximately invested Group the 2005, In Production C

apacity Expansion apacity Board of Directors of Board pelaburan di dalam sebuah kilang pemasangan baru yang akan dibina di dibina akan yang baru pemasangan kilang sebuah dalam di pelaburan Untuk bersiap sedia bagi fasa pertumbuhan seterusnya, Kumpulan membuat memenuhikeperluanpengeluaranKumpulanpadamasadepan. bagi untuk Kumpulan pemasangan, operasi dalam kecekapan berterusan dan produk kualiti meningkatkan usaha daripada sebahagian Ini Lumpur. Kuala merupakan Segambut, di ada sedia yang kilang taraf menaikkan untuk juta RM15 kira-kira melaburkan telah Kumpulan 2005, tahun Pada Pengeluaran Kapasiti Perluasan muatan danversiterbaruX-Trail,muatan Cefirodan Sentra. kejayaan pengenalan Nissan Urvan, sebuah van serba boleh 14-penumpang mencapai juga kami ini, tahun Pada sebelumnya. tahun pada unit 21,853 kepada 24,553 unit di keadaan pasaran yang sangat kompetitif berbanding 12% sebanyak peningkatan mencatatkan 2005 tahun pada jualan Jumlah Kenderaan penumpangdanperdaganganringanNissan Keputusan Tinjauan dipasang dandikeluarkandaripadakilangbaruini. akan kami baru model-model Rangkaian 2007. tahun kedua suku pada siap akan dijangka dan bermula telah baru kilang untuk pembinaan kerja Kerja- juta. RM191 sebanyak dianggarkan projek kos jumlah muktamad, daripada Nissan. Menurut reka-bentuk dan spesifikasi peralatan kilang yang pemasangan proses dan terkini teknologi dengan dilengkapkan dan Way Nissan Motor Co Ltd. Kilang baru tersebut akan mematuhi Nissan Production p melalui dijalankan telah ini baru pemasangan kilang untuk mereka-bentuk aktiviti dan terperinci yang teknikal spesifikasi Selangor.Kajian Serendah, daerah di ekar 47 seluas tanah sebidang atas

enyeliaan rapi dan bantuan dan rapi enyeliaan

Renault Grand Scenic Grand Renault Nissan Nissan Cefiro of the division has been partly offset by the favourable performance of of business. bus performance the favourable the by offset partly been has division the of profitability in decline year. The the during encountered competition stiff and volume sales lower to due marginally dropped division whole the for the business, truck year. previous Profitability with consistent heavy fairly was 2005 year in revenue the to price As the to competition. rival’s mainly due and 2004 increase year to compared share market the in decline marginal a registered business truck light the 2005, year the For vehicles commercial heavy and Medium sold in2004priortotheintroductionofCKDKangoo(source: A total of 1,361 Renault vehicles were sold in 2005 compared to 185 units to 6 with a total of 30 dealers appointed nationwide in 2005. the Kangoo product proposition. To promote sales, TCEC branches increased “Sportif” in November 2005. The Sportif added a more dynamic dimension to Cars Sdn Bhd (TCEC) in January 2005 was followed by a new variant named The launch of the Kangoo, Renault’s first CKD vehicle in Malaysia, by TC Euro vehicles Renault MAA). (source: share market 47% a with segment pick-up diesel manual 4 x 4 non-national the led Frontier the while MAA) (source: share market 51% a with segment liter 2.0-2.5 wagon station 4x4 non-national the led X-Trail The MAA). (source: share market 68% a with segment passenger petrol liter dominate 1.6 to non-national the continued Sentra 2005 the look, new face-lifted the With Pengarah Lembaga Laporan the of Report

Board of Directors of Board MAA ). (sumber: MAA). Kangoo CKD pengenalan sebelum 2004 tahun pada dijual yang unit 185 Sejumlah 1,361 unit kenderaan Renault dijual pada tahun 2005 berbanding 30 pengedardilantikdiseluruhnegarapadatahun2005. sejumlah dengan 6 kepada bertambah TCEC cawangan bilangan jualan, Kangoo. produk cadangan kepada dinamik dimensi dengan diikuti 2005 Januari v pada (TCEC) Bhd Sdn Cars Euro TC oleh Pelancaran Kangoo, iaitu kenderaan CKD Renault yang pertama di Malaysia, Kenderaan Renault pasaran(sumber: dengan47%bahagian tempatan MAA). MAA) (sumber: pasaran sementara Frontier mengetuai segmen bahagian ‘pick-up’ diesel manual 4 x 51% 4 bukan dengan 4x4 liter besar 2.0-2.5 kenderaan segmen mengetuai telah X-Trail segmen MAA). (sumber: pasaran menguasai terus 2005 Sentra penumpang baru, penampilan Melalui telah dihapuskan melalui prestasi perniagaan bas yang tahunsemasa. Sebahagian daripada penurunan pada jumlahjualan yang rendah dan persaingan yang sengit yang diharungi pada Keuntunganbahagianbagikeseluruhan merosotsecaramarginal berikutan sebelumnya.tahundengan konsisten agak adalah 2005 tahun pada hasil pula, berat trak perniagaan Untuk lawan. pihak daripada persaingan dan bahagianpasaranberbanding2004,ditahunberikutan peningkatan harga tahunBagi2005, perniagaan trakringanmencatatkan penurunan marginal Kenderaan perdagangansederhanadanberat ra br braa Sotf d Nvme 20. pri menambah Sportif 2005. November di “Sportif” bernama baru arian 1.6 liter minyak petrol bukan tempatan dengan 68% bahagian

keuntunganbahagian baik. nu memajukan Untuk

Nissan X-Trail Nissan

Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 5 5 Annual Report 2005 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 6 Annual Report 2005 Laporan Lembaga Pengarah Lembaga Laporan the of Report market cost of funds. funds. of cost prevailing market the at rates, interest fixed with receivables, purchase hire its of part liquidate to Group the enabled has programme securitization The interest). unearned of (net million RM130 about to amounted year the of end at as scheme this under Group the by managed assets purchase hire of value The exercise. the of end the at bonus servicer a and collections the of percentage a on based fee monthly a for return SPV, in the of behalf on due amounts all collect to and hirers the service to continue will servicer the as Bhd Sdn Company Motor Sons & Chong Tan programme, securitization the Under assets. the to relating rewards and risks the all substantially retained longer no Group the as Group the of been sheet balance the from has derecognised programme securitization the under SPV the to sold interest) of (net unearned million to RM165.7 amounting receivables purchase Hire notes. asset-backed term medium value nominal million RM164 of series first the of issuance thesecuritizationprogramme,completed successfully CommerceBhd,specialpurposea vehicle (SPV)established Group’s thefor programme”) (“securitization programme asset-backed an notes under medium-term receivables purchase hire of sale RM160.5 from approximately million of proceeds realized Group the 2005, May In imminent. was this hike rate in interest an when funding particularly area, additional commit to Group the for unattractive it rate made lending purchase hire low the as purchase year hire the during in–house business its lending of expansion the down slowed Group The services Financial

Board of Directors of Board . Premium kos danapasaranyanglazim. pada tetap, faedah kadar dengan beli, sewa terima belum akaun daripada sebahagian mencairkan Kumpulan membolehkan telah sekuritasi Program kira-kira RM130juta(ditolakfaedah belum dijana). berjumlah tahun akhir pada ini skim bawah di Kumpulan oleh dikendalikan bonus dan kutipan peratusan pemberi khidmat pada akhir perlaksanaan berdasarkan tersebut. Nilai aset sewa beli dikira yang yang bulanan yuran mendapat sebaliknya SPV,dan pihak bagi hutang semua mengutip untuk dan penyewa untuk berkhidmat terus akan khidmat pemberi sebagai Bhd Sdn Company Motor Sons & Chong Tanini, sekuritasi program bawah Di risiko danganjaranberhubungdenganasettersebut. semua bagi besar sebahagian mengekalkan lagi tidak Kumpulan kerana Kumpulan Kira-kira Kunci dalam diiktirafkan tidak telah dibawah sekuritasi program SPV kepada dijual dijana) belum faedah (ditolak juta RM165.7 berjumlah yang beli sewa Penerimaan aset. disokong yang pertengahan jangka nota nominal nilai juta RM164 sebanyak pertama siri penerbitan menyempurnakan berjaya Kumpulan, sekuritasi program untuk ditubuhkan (program sekuritasi). Premium Commerce Bhd, entiti tujuan khas (SPV) yang aset disokong yang pertengahan sewa jangka nota program terima satu bawah di belum beli akaun pelupusan daripada juta RM160.5 kira-kira berjumlah kutipan merealisasikan telah Kumpulan 2005, Mei bulan Pada pada kadarfaedahakanberlaku. tersebut,bahagianperubahanterutamanyaapabilapembiayaanditambahan melakukan Kumpulan untuk menarik tidak menjadikannya rendah yang beli sewa pinjaman faedah kadar kerana semasa tahun pada dalamannya beli sewa pinjaman perniagaan memperluaskan dalam bergiat tidak Kumpulan Perkhidmatan Kewangan did not deteriorate. not did quality asset that ensure to steps taking by management risks credit on emphasis place to continued Group the as 1.0% non-performing below were year, (NPL) loans the for growth loans moderate registering While end. year RM400 previous at as of that than higher 2005 marginally of was million end the at as Group the by managed assets purchase loans hire total the earlier, explained programme securitization the under Group the by managed million RM130 of amount the Together with of to the amounted after derecognition amount securitized, RM270 million. Group, the of loans purchase hire of value the 2005, December 31 at As Pengarah Lembaga Laporan the of Report

Board of Directors of Board mengambil langkah-langkah bagi memastikan kualiti aset tidak merosot. Kumpulanterus memberi penekanan kepada pengurusan risiko kredit dengan kerana 1% dibawahberada terus (NPL)berbayar tidak pinjaman semasa, tahun pada sederhana yang pinjaman pertumbuhan mencatatkan Sambil RM400 juta adalah lebih tinggi berbanding tahun sebelumnya. sewabeli yang dikendalikan oleh Kumpulan pada akhir tahun 2005 sebanyak bawah program sekuritasi yang dinyatakan sebelum ini, jumlah aset pinjaman diKumpulan dikendalikanolehyang juta RM130 sebanyakjumlah dengan tanpa Kumpulan, beli sewa pengiktirafan pinjaman jumlah yang nilai disekuritasikan, 2005, berjumlah RM270 Disember juta. Bersamaan 31 Pada Nissan Nissan Serena

7 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 7 Annual Report 2005 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 8 Annual Report 2005 Laporan Lembaga Pengarah Lembaga Laporan the of Report H from some players. major to is margin profit Vehicle be expected squeezed. 5%. of share market target a achieve to Frontier the and X-Trail Nissan Sentra, Nissan of models popular the by driven be to continue will 2006 in sales Group’s motor The structure. duty revised the under duty higher a by affected are models remaining the while reduced have X-Trail and Cefiro Sentra, Nissan namely vehicles, Group’s motor the of models certain of prices The structure duty the streamlined in resulting a greatly of reduction most car prices, the especially models. passenger has NAP The regional a hub. into Malaysia automotive transforming of direction firm a Essentially gave vehicles. NAP the motor for structure duty new the and (NAP) Policy In the March 2006, National Automotive of announced the Finance Ministry Year Prospects Current Meeting. General Annual forthcoming the at approval shareholders’ to subject is payment The 2005. of respect in 28% of tax income less 10% of dividend a final recommends Board The 2005 totaling RM16.75 million was declared and paid on 28 September 2005.in exempt) tax –5% (2004 exempt tax 5% of dividend interim An 2005. June 24 on paid was million) 2004 of respect – RM24.12 (2003 in million RM24.12 totaling 28% 28%) of tax less - 10% (2003 of tax income less 10% of dividend final The Dividends owever, the automotive business is still expected to be profitable. profitable. be to expected still is business automotive owever, the Competition will intensify with the launches of new models models new of launches the with intensify will Competition

Board of Directors of Board

respect of respect

Secara amnya, NAP memberikan hala tuju yang tegas untuk menukarkan untuk tegas yang tuju hala memberikan NAP amnya, Secara bermotor.kenderaan untuk baru duti struktur dan (NAP) Dasar Negara Automotif mengisytiharkan Kewangan Kementerian 2006, Mac bulan Pada Tahun Semasa Prospek akan datang. Tahunan Agung Mesyuarat di saham pemegang para daripada kelulusan cukai ditolak 10% sebanyak pendapatan 28% bagi tahun 2005. Bayaran akhir dividen adalah tertakluk kepada dividen mencadangkan Lembaga pada dibayar dan diisytiharkan telah juta RM16.75 berjumlah 2005 tahun bagi cukai) Dividenpertengahan sebanyak dikecualikan5% cukai(2004 –5%dikecualikan pada24Jun2005. juta) telahdibayar (2003 - 10% ditolak cukai 28%) berjumlah RM24.12 juta (2003 – RM24.12 Dividen akhir sebanyak 10% ditolak cukai pendapatan 28% bagi tahun 2004 Dividen Namun, automotifmasihdijangkamenguntungkan. perniagaan terjejas. akan dijangka kenderaan daripada besar.Keuntungan lebih yang akan Persaingan 5%. pesaing pihak daripada baru model-model pelancaran dengan dipergiatkan sebanyak pasaran bahagian sasaran mencapai untuk Frontier dan X-Trail Nissan Sentra, Nissan iaitu ramai disukai yang model-model oleh dipacu terus akan 2006 tahun pada Kumpulan bermotor duti yang lebih tinggi di bawah struktur duti yang dipinda. Jualan kenderaan oleh dipengaruhi telah selebihnya yang model-model sementara menurun Kumpulan,bermotor Sentra,kenderaan Nissan X-Trailiaitu dan Cefiro telah kebanyakan bagi harga kenderaan, penurunan terutamanya bagi model mengakibatkan penumpang. Harga-harga menyelaraskan model yang tertentu telah duti NAP struktur serantau. automotif pusat kepada Malaysia 28 September2005.

7 April 2006 7 April Lumpur Kuala Chairman Deputy Executive Chew TanDato’ Heng support. continuing their for shareholders our as well as associates business other and bankers suppliers, customers, valued our all to thank like also I would In closing, the to appreciation our extend always. as contribution to and dedication their for wish staff and management I Board, the of behalf On Acknowledgement satisfactory. be to expected is 2006 for results Group’s the circumstances, unforeseen significant any Barring accordingly. capacity assembly and while manpower its convenience strengthening customer and market target the to accessibility the improve to network sales after and sales in invest further will Group the volume, sales in growth annual an for Group the of In initiatives the with line sales. current the of complement to importation vehicles the (CBU) and built-up market completely local the of needs the meet to line-up vehicle the enhance to principals the with closely working is Group The Laporan Lembaga Pengarah Lembaga Laporan the of Report

Board of Directors of Board JP,DJMK 7 April 2006 Kuala Lumpur Timbalan PengerusiEksekutif Chew TanDato’ Heng sokonganmerekayangberterusan. dan jugapemegangsahamkamiatas dihargai yang lain perniagaan sekutu dan jurubank pembekal,pelanggan, Sebagai penutup, saya juga ingin mengucapkan terima kasih kepada semua dan sumbanganmerekasepanjangmasa. dedikasi kerana kakitangan dan pengurusan pihak kepada penghargaan setinggi-tinggi merakamkan ingin saya Pengarah, Lembaga pihak Bagi Penghargaan Kumpulan padatahun2006dijangkakekalmemuaskan. keputusan berlaku, ketara yang jangkaan luar di kejadian tiada Sekiranya sesuai. yang pemasangan kecekapan dan kerja tenaga meningkatkan memperkukuhkan sama, untuk yang masa pada jualan lepas dan kemasukan jualan rangkaian dalam di pelaburan membuat terus akan Kumpulan jualan, jumlah meningkatkan untuk Kumpulan inisiatif dengan Sejajar semasa. jualan melengkapkan untuk diimport yang (CBU) Sepenuhnya Dibina kenderaan dan tempatan pasaran keperluan memenuhi untuk kenderaan rangkaian meningkatkan untuk terlibat yang pihak-pihak dengan bekerjasama sedang Kumpulan kepada pasaran sasaran dan kemudahan pelanggan, dan dan pelanggan, kemudahan dan sasaran pasaran kepada

JP,DJMK

Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) 9 Annual Report 2005 0 1 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Azman bin Badrillah bin Azman TanSoon Eng TanDato’ Chew Heng bin Abdullah Ahmad Profile meetings held in 2005. in held meetings board six the all attended Azman Encik himself. involving parties related and Group the between transactions of respect in voting and deliberation from abstained has Company. He the involving arrangement business any in interest of conflict any Company, nor the of shareholder major and/or Berhad. Holdings He Automotive also sits on the board of Berhad.Eco Resources Encik Azman does with any not director have any relationship family of APM board the to appointed was Azman Encik re-structuring, corporate a undertook Group the Tan 1999. Chong When until groups product key its of one of performance overall the for responsible was and division manufacturing its of Azman director Encik executive Bank.an as 1983 joined Tanin the Group Chong of operations international the with spent period a included America of Bank with service later. His years 11 left he when Vice-President Assistant of position the to risen had and America of Bank joined He 1971. in Malaya of University the from Economics in degree a Age 2005. in held involving meetings board six Mr the himself. parties Tanall attended related and Group the between transactions of respect in voting and deliberation from abstained has He Company. the involving arrangement business any in interest of conflict any Company.have Mr the Tannot of does shareholder major a Bhd, Sdn Consolidated Tan Chong of shareholder and director a and Chew TanDato’ Heng of brother the is He Berhad. Holdings Mr.1971. of APM Automotive since director Tan a is the in Tan Group’s operations involved Chong been has South Wales,and New of Australia University the from Engineering Civil in Tandegree a has Age 2005. in held meetings board six the Dato’ Tan himself. all attended involving parties related and Group the between transactions of respect in voting and deliberation from Company. the abstained has He involving arrangement business any in interest of conflict any have not does is the of brother Mr Tan Eng Soon and a of and director shareholder Tan Sdn Bhd,Chong Consolidated a of major shareholder the Company. Dato’ Tan in Division Autoparts the 1970s and early 1980s. Dato’ Tan is the of Chairman APM Berhad Holdings and Automotive Warisan TC Berhad.Holdings He the of establishment the in instrumental was and 1970 in companies of the Tan group joined Chong He Newcastle, Australia. of University the from Engineering in degree Masters a and degree (Honours) Engineering of Bachelor a with South Wales, New of Australia University the from graduated Age 2005. in held meetings board six the of five attended Encik Ahmad himself. involving transactions parties related of and Group the between respect in voting and deliberation from abstained has He Company. the involving arrangement business any in interest of conflict any Company, nor the of shareholder major and/or director any with relationship family any have not does He Berhad. Holdings of APM Automotive bodies. He the joined international Tan in marketing. involved Encik in Group of Chong 1975 as a director is an Ahmad subsidiary a executive director various on Malaysia represented also he period which during 1972 until 1959 from served he where Parliament Malaysian the of Secretary of post in of 1959. Hull in Kingdom the by United the from University He with Honours was appointed degree Yang Di-Pertuan to Agong the constitutional Age 57, a and Singaporean a Resident, Permanent Malaysian was to appointed the Board as the Group since Director Managing 1 1989. February Mr 71,Malaysian,a wasappointed thetoBoard December 1on 1980and theis Vice-Chairmansince March30 1994. Encik Ahmadreceived hislaw 58, a Malaysian, was appointed to the Board on 4 April 1994. He is a Non-Independent Non-Executive Director. Encik Azman graduated with with graduated Azman Director.Encik Non-Executive Non-Independent a is He 1994. April 4 on Board the to appointed was Malaysian, a 58, 59, a Malaysian, was appointed to the Board on 19 October 1985 and is the Executive Deputy Chairman since 1 January 1999. Dato’ Tan Dato’ 1999. January 1 since Chairman Deputy Executive the is and 1985 October 19 on Board the to appointed was Malaysian, a 59,

of the of

JP, DJMK

Board of Directors of Board

Seow Fatt Seow Thiam Dato’ Haji Kamaruddin @ Abas bin Nordin Cheong Mann Ng Dato’ None of the directors had convictions for any offences within the past 10 years. years. 10 past the within offences any for convictions had directors the of None meetings held in 2005. in held meetings board six the all attended Seow Mr Company. the involving arrangement business any in interest of conflict any nor Company, the of shareholder major and/or director any with relationship family any Berhad.have not He does Corporation Pacific of Malaysia Director Non-Executive Independent a Non- and of Berhad Berhad, Director Berhad,Funds Warisan Bank ING Holdings TC Merchant Affin Non-Executive Independent an also is Seow Mr Department. Compliance and Surveillance Reporting of as the Manager of Financial General Malaysia a Commission includes with companies. two the public year His Securities contract work experience and private in positions senior various held thereafter and 1994 in practice professional from diverted Young. He Arthur of Partner a & and Rowland Co/Moores & Seow Larry of Partner Senior a of capacity the in accountant practicing a as experience professional years’ 20 than more has He (KLCE). Exchange Commodities Lumpur Kuala previous the of Director independent appointed the and Accountants of Institute Malaysian the of Institute Malaysian Public Certified (MICPA) of Accountants since 1969. He member is the past a of president MICPA and also also four served years as is a government He 1968. in Australia in Accountants Chartered of Institute the and 1964 in Administrators and Secretaries Chartered of Institute the 1963, in CPAAustralia of member a as admitted was Accountant, Chartered Seow, a Mr Audit the of Chairman the and Director Non-Executive Committee. Independent an is He 2002. July 3 on Board the to appointed was Malaysian, a 65, Age partiesinvolvinghimself.between theGroupandrelated allthesixboardmeetingsheldin2005. HajiKamaruddinattended Dato’ transactions of respect in voting and deliberation Company.from the involving abstained arrangement has business He any in interest of conflict any Company,nor the of shareholder major and/or director any with relationship family any have not does Kamaruddin Haji Dato’ Berhad. Corporation of Home director Industries Department,of a Lion is APM and Registration Affairs.Kamaruddin Berhad the Ministry Haji Holdings of Automotive Dato’ Director-Generaland of Works General,Ministry Secretary MITI,Deputy the Director,in as Divisions them Industries positions,among senior various 1966. He joined the civil service upon his graduation and served the Government until he retired in 1993. During his tenure with the civil service he held in Economics in majoring of degree Master Arts Canterbury,a of with University Zealand the New from graduated Kamaruddin Committee.Haji Dato’ Age 2005. in held meetings board six the of five attended Ng Dato’ Company. the involving conflict any arrangement nor Company, business the any in of interest of shareholder major and/or director any with relationship family any have not does Ng Dato’ Chong. David & Ng Alwi, Syed of Partner a Senior is and years 38 past the for practice legal in been has He Australia. and Western Victoria Singapore, of jurisdictions the in practice to admitted been has and Malaya of Court High Solicitor, and Temple), Advocate (Middle law at Barrister a is Ng Dato’ Committee. Age 67, a Malaysian, was appointed to the Board on 23 November 2001. He is an Independent Non-Executive Director and a member of the Audit the of member a and Director Non-Executive Independent an is He 2001. November 23 on Board the to appointed was Malaysian, a 67, 61, a Malaysian, was appointed to the Board on 31 July 1998 as an Independent Non-Executive Director and is a member of the Audit Audit the of member a is and Director Non-Executive Independent an as 1998 July 31 on Board the to appointed was Malaysian, a 61,

DSSA,SMP, JP

DSSA, KMN

1 1 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 2 1 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Financial (Par V Net AssetsPerShare ‘01 127 alue RM0.50pershare)(sen) ‘02 136 ‘03 147

‘04 Charts 160 ‘05 174 (Par V Earnings PerShare T Revenue otal Assets alue RM0.50pershare)(sen) ‘01 ‘01 ‘01 16 994 1,501 (RM Million) (RMMillion) ‘02 ‘02 ‘02 15 1,081 1,527 ‘03 ‘03 ‘03 16 1,328 1,678 ‘04 ‘04 ‘04 19 1,865 2,385 ‘05 ‘05 ‘05 20 2,165 2,949 Profit AfterT Distribution PerShar Capital &Reser ‘01 ‘01 ‘01 Ordinary dividend(gross) Ordinary 7.00 841 111 ax ‘02 (RM Million) ‘02 ‘02 ves 6.50 900 104 (RM Million) e (sen) ‘03 ‘03 ‘03 7.00 970 108 ‘04 ‘04 ‘04 7.50 1,056 130 ‘05 ‘05 ‘05 7.50 1,146 134 A. Governance. CodeonCorporate the Malaysian in out set practices best the with compliance of extent the and principles the applied has Group the manner the on report to wishes Directors of Board The governance. goodcorporate standardsfor oftheGroupinaccordancewithappropriate theaffairs tomanage It isthepolicyofCompany The Board is of the view that proposals for new appointments andtheassessmentofcontributionsDirectorswould bemoreeffective, newappointments proposalsfor TheBoardisoftheviewthat if Appointment totheBoard (iv) procedures Board that ensuring for responsible is who Secretary Company the of services the and advice the to access direct have Directors theCompany’s Directorstoseekindependentprofessionaladviceat procedurefor anagreed TheBoardhasapproved expense. proposal and report financial period a issues, business and trading current on report a include may documents these meetings Board For inadvanceofeachscheduledBoardandCommitteemeeting. boardpapers andsummary Boardmembersareprovidedwithanagenda SupplyofInformation (iii) members Board the of profiles Group.The the of direction successful the for essential experience ranging Together,wide have Directors the four and Director Managing Group Chairman, Deputy Executive Vice-Chairman,the comprising members, (7) seven has currently Board The BoardComposition (ii) 10and11. Boardmembersare set outintheProfileofBoardDirectors’onpages by Detailsofattendance decisions, policy broad making for reserved matters of schedule formal a has Board 2005.The in held meetings Board (6) six were There is Group the that ensure to regularly meets which Directors, of Board the by managed are Group the and Company the of businesses The TheBoard (i) DIRECTORS are set out on pages 10and11. are setoutonpages one-thirdoftheDirectorsmustbeindependent. with therequirementthat complied had Board the of year,composition the the During directors. independent are whom of (3) three Directors, Non-Executive other (4) and Board the aswellofficersoftheGroup. of management committees to delegated are matters Other appointments. material executive disposals, senior and and acquisitions expenditures significant capital budgets, major agreements,and plans business annual results, interim and annual of approval the including toachieveimprovementintheexpectedlong-termshareholdersvalue. managed properly not required. currently Directors,is all such,committee of as experience and nomination of a wealth the on drawing by whole a as Board the by performed are followed. fromthemanagement. papers Statement

on Corporate Governance Corporate on 13 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 14 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 B. Statement Non-Executive Directors Executive Directors Executive Directors, areasfollows: Non- and Executive between distinguishing components, appropriate into categorization with aggregate, in year the during remuneration Directors’ indiscussionsontheirremuneration.Executive Directorsdonotparticipate Non- annum.The per RM300,000 aggregate, in exceeding, not amount an at Company the of shareholders the by fixed Company the of Directors the to payable fees Directors’ of limit the to subject whole a as Board the by determined is Directors Non-Executive the of each of remuneration The annual same The conditions. the business of prevailing the quantum account totheExecutiveDirectors. guidelines werealsoapplied into The taking level. after Board Group the the of results below operating the operations on of dependent was heads bonus performance senior included members whose committees by approval Board’s for recommended were Group the of employees executive of respect in 2006 for increment annual and 2005 of respect in bonuses on guidelines The performance. Group’sthe to positively contribute to levels all of employees motivate to as Directors.well as retain and Executive attract to seeks Group to the of policy remuneration applicable The also are level Board below employees executive remunerating in procedures and principles key the essence, In andasappropriate.as awholewhennecessary Board,effective,required.more not be would currently therefore, is and committee Consequently, remuneration a Board the by performed is role this the on Directors the all of experience of wealth the upon drawing by Directors, formulated for guidelines remuneration that view the of is Board The DIRECTORS’ REMUNERATION have Directors Berhad.The Securities Malaysia Bursa by prescribed as programmes training mandatory the attended have Directors the All Directors’Training General Annual next the at shareholders by (vi) re-election to subject are and term specific a for appointed not are Directors Non-Executive retire shall Directors the of one-third Company the of Meeting General Annual every at that provide Association of Company’sArticles The 10and11. re-electionaresetoutonpages TheprofilesoftheDirectorswhoareduefor All Directorsheldofficethroughouttheyear. Re-election (v) financial year. For continuous training, the Directors are encouraged to participate in seminars and conferences organised by the relevant withdevelopmentsinthemarketplace. authoritiesandprofessionalbodiestokeepabreast the regulatory by organised conferences and seminars in the participate to during encouraged Company are the Directors by the training,organized continuous seminars year.For the financial of some in Directors, respective the of needs the to accordance in participated, also theirappointment,Meeting following ortore-electioninaccordancewiththeCompany’s Articles of Association. leastineachthreeyears, allDirectorsshallretirefromofficeonceat from officeandthat re-election. for butshallbeeligible

on Corporate Governance Corporate on 5,0 29,000 258,000 R) (RM) (RM) es loac Bonus Allowance Fees

46437 ,8,6 50,748 2,583,069 4,674,367 – aaisad Benefits-in- Salaries and (RM) – 17,800 – (RM) kind D. C. The Board of Directors has established an Audit Committee. The membership of this Committee, a summary of the terms of reference and reference of terms the of summary a Committee, this of membership Committee.The Audit an established has Directors of Board The AuditCommitteeandAuditors (iii) ofinternal controlswithintheGroup. ofthestate 16providesanoverview onInternalControlfurnishedpage TheStatement Audit InternalControl the by reviewed are Report Annual the in Directors of (ii) Board the of Report the as well as results of announcements quarterly The FinancialReporting (i) ACCOUNTABILITY ANDAUDIT There was a forum for the shareholders to raise questions or issues theat AGM regarding the Company’s performance in 2004. The Company total whose representatives, corporate and proxies individuals, registered comprising shareholders by attended was 2005 in AGM The Kuala Hotel, Seasons Grand of Ballroom Grand the at 2005 May 20 on held was Company the of (“AGM”) Meeting General Annual The AnnualGeneral Meeting (ii) the of informed shareholders interested keep to serve website, Malaysia Bursa on available announcements, result quarterly Group’s The communities,investment and shareholders request,institutional their with meetings at individual and view the group with holds Company The DialoguebetweenCompaniesand Investors (i) RELATIONS WITHSHAREHOLDERS RM3,850,001 toRM3,900,000 RM2,850,001 toRM2,900,000 RM550,001 toRM600,000 RM100,001 toRM150,000 RM50,001 toRM100,000 Below RM50,000 Range ofRemuneration successivebandsofRM50,000isasfollows: fallswithinthefollowing The numberofDirectorswhoseremuneration the activityreportof 18and19. Audit Committeearesetoutonpages Board’sCommittee before andreleasetotheshareholders/public. approval financial various the in prospects and position Company’s the reports totheshareholders. of assessment understandable and balanced a presented has Board The theChairmantovoteontheirbehalf. andthenumberofproxiesappointing abstentions of resolution,number each the of respect in cast were received,votes proxies how of number the the of attending AGM shareholders advised shareholdings represented62%oftheissuedsharecapital. Lumpur. tothe The NoticeofMeetingwasattached Annual Reportdistributedtoshareholders. Company/Group’s fromtimetotime. progress understandingofthebusinessGroup. greater to foster Duringtheyear, heldseveralmeetingsofsuchnature. theCompany xctv Non-Executive Executive – – – 1 1 1 – – – 1 2 1 Statement

on Cor on porate Governance porate 15 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 16 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Statement hr wr n mtra lse icre drn te urn fiaca ya a a eut f ekess n nenl oto. aaeet otne t take to continues Management control. internal in weaknesses of result a as measures tostrengthenthecontrolenvironment. year financial current the during incurred losses material no were There Weaknesses inInternalControlsthatResultMaterialLosses internal controlproceduresfromtimetotime. with compliance of state the ascertain to help which Checklists Control Internal the complete to required also are units auditors,business internal the key by conducted audits field implementation.from Apart before Committee the Audit by approved and annually tabled are plans audit internal Group.Detailed the of units business major the of profiles risk the on based plans and strategies audit its prepares and approach risk-based a adopts function audit internal The ofthesysteminternalcontrol fromanindependentperspective.in regardtotheadequacyandintegrity assurance further Committee,with the Audit Board,through the provides department,which audit internal resourced adequately an place in has Group The Internal andManagementAuditFunction the to referred are approval. main Boardfor authority of limits the beyond Matters businesses. its control and manage to established been have committees management Various processesoftheGroup. the overallcontrolandriskmanagement in part a play also Insurance as well as Treasury,Administration centralized and Control, Finance Credit Secretarial, and Group Legal like functions Support committees. management various for authority of limits and structure organization established an by supported further are Group the of controls internal The the affecting risks significant of management and evaluation identification, timely the businesses. for platform a is there that ensure to serve processes above The thesubsidiariestoholdingCompany. financialreporting by Monthly senior the with dialogues regular and businesses (iv) major the of running day-to-day the in Board and the business of in members certain changes by the participation of Active impact the assesses also which Board (iii) the by business Group’s the of performance the of review Quarterly (ii) of objectives Board.business the key by the units out business set major plans all These of budget and plan business annual of approval and Review (i) key the of some andcontrolstructure: elements oftheriskmanagement represents following processes.The management overall the of part integral an as regarded are controls internal and management Risk Risk ManagementandControlStructure losses. theGroupfailingtoachieveitsobjectivesormakingmaterial against assurance absolute an be never can there thus and risks eliminate totally cannot system a such that aware are Directors control,the internal of system the for responsibility their acknowledging business.While its of aspects all covers that control internal of Group’ssystem the for responsible are Directors The Board Responsibility the Groupduringyear. of control internal of scope and nature the outline to pleased is and Group the in control internal of system sound a maintaining to committed is Board The a Report ofinternalcontrolthelistedissuerasaGroup.” thestate about “statement Annual their in include to companies listed public of Directors of Board the requires Requirements Listing Malaysia Bursa of 15.27(b) Paragraph management ofsmallerbusinessunits;and management competitive environment; the respectivebusinessunits, andensuingactionplans; themajorrisksandopportunitiesinoperations

on Internal Control Internal on Total March 2006 2006 February 2006 January Month sharesareasfollows:- heldastreasury Details ofthesharesboughtbacksubsequenttofinancialyearup31March2006andcurrently ofsharesduringthefinancialyear. sharesnor cancellation There werenore-saleoftreasury didnot The Company SHARE BUYBACKS thefinancialyearended31December2005wasRM107,914. The amountofnon-auditfeespaidtoexternalauditorsfor NON-AUDIT FEES requirementsoftheGroup, generalworkingcapital whichshallbeusedfor notes programme fromtimetoasthene the 2005, May In U policyonlandedpropertiesissetoutunderNote The revaluation STATEMENT ONREVALUATION POLICY s s Renault and Group the c from Apart STATEMENT ONMATERIAL CONTRACTS taking such steps as are of the Company and the Group and which enable them to ensure that the financial statements comply withThe the Directors Act. areThe responsible Directors have for the ensuring general responsibilitythat the Company for and the Group keep accounting records andprovisionsofthe accountingstandardsinMalaysia approved applicable ensuredthat Act arecompliedwith. which disclose, with reasonable accuracy, the financial position andprudent; arereasonable that madejudgmentsandestimates (iii) accountingpolicies, adoptedtheappropriate applied; whichareconsistently (ii) (i) theyear for In preparingthefinancialstatements andtheGrouptheirres oftheCompany ofaffairs the state Direct The STATEMENT ONDIRECTORS’RESPO oftheprinciplesandbe application the on report the in explained as committees remuneration and nomination the of formation the for Governance,except Corporate on Code Malaysian the of 20 during that considered Directors The STATEMENT OFCOMPLIA hareholders’ interests TILISATION OFPROCEEDSFROMCORPORATE PROPOSAL ors are ors ontracts concerning distributorship rights between the Group and Nissan Motor Co Ltd, a major shareholder of the Company as well as Company the of shareholder Ltd,major Co a Motor Nissan and Group the between rights distributorship concerning ontracts required by the Compa the by required G roup realized proceeds of approximately RM160.5 million from sale of hire of sale from million RM160.5 approximately of proceeds realized roup buy back any sharesin20 buy backany duringthefinancialyear reasonably open to them to saf . a.s. NCE WITHTHEBESTPRACTICESINCORPORATE GOVERNANCE t , here st prac were NSIBILITY FORPREPARING THEANNUALFINANCIALSTATEMENTS 05, t 05, nies Act, 1965 (the “Act”) to prepare financial statements for each financial year which give a true and fair view of view fair and true a give which year financial each for statements financial prepare to (the “Act”) nies Act,1965 tices in corporate governa tices incorporate o m no he Co he . 05. ended 31December2005, theDirectorshave: ateria mpany had complied substantially with the Best Practices in Corporate Governance set out under Part 2 Part under out set Governance Corporate in Practices Best the with substantially complied had mpany eguard the assets of the Group and to prevent and detect fraud as well as other irregularities.

No. ofsharebought contracts l back treasury treasury 341,000 163,000 168,000 and heldas 10,000 ults for thefinancialyear.ults for 2 hrs (RM) shares of the Notes to the financial statements on pages onpages oftheNotestofinancialstatements nee it by into entered nce.

paid Highest the Company Company the .3 1.490 1.390 1.530 1.450 .1 1.510 1.510 per share price

p urchase receivables under an asset-backed medium-ter asset-backed an under receivables urchase and/or paid Lo west t sbiire ivlig h Drcos n major and Directors the involving subsidiaries its (RM) per share Other price

40 to ed paid Average 42 arises.

Dis ofthe Annual Report. 1.509 239,852.95 1.417 .1 15,212.64 1.510 R) (RM) (RM) e hr consideration per share rc Total price

closures 502,870.88 247,805.29 as between m 17 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 18 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Report . convenemeetingswithexternalauditors, oftheexecutivemembers. excludingtheattendance 6. toobtainindependentprofessionalorotheradvice, beable 5. outtheinternalauditfunctionoractivity, channelswithexternalauditorsandperson(s)carrying directcommunication have 4. ortheGroup, pertainingtotheCompany information fullandunrestrictedaccesstoany have 3. itsduties, theresourceswhicharerequiredtoperform have 2. withinitstermsofreference, matter any investigate 1. The theBoard,Audit Committeeisauthorizedby thecostofCompany, and at to: Authority ofthe The termsofofficeandperformance threeyears. leastonceevery theBoardat Audit Committeeandeachofitsmembersshallbereviewedby must befilledwithinthreemonths. vacancy Berhad,the Securities Malaysia Bursa of Requirements Listing the in breach a in results which Committee the Audit in vacancy any of event the In The membersofthe Audit CommitteeshallelectaChairmanfromamongsttheirnumberwhobeanIndependentDirector. amemberofthe directorshallbeappointed No alternate Audit Committee. specifiedinPartIIofthesaidSchedule. of onetheassociations member a is the or Accountants Act,of 1967 Schedule First the of I Part in specified examination the passed have and experience working years 3 least at have alternatively,must or who of Accountants person Institute a Malaysian the of member a is who Director one least at include shall Committee The Audit of majority a members, three them mustbeIndependentDirectors. than fewer no of composed be shall and Directors the amongst from Board the by appointed be shall Committee Audit The Membership TERMS OFREFERENCE HajiKamaruddin@ Dato’ NgMannCheong Dato’ Seow Thiam Fatt Name The compositionofthe thefive(5)meetingsheldinyeararesetout below: ofitsmembersat Audit Committeeandtheattendance COMPOSITION ANDMEETINGS The aresolutionoftheBoardon1 by Audit Committeewasestablished August 1994. 31 ended year the for Board the of Committee December 2005. Audit the of report the present to pleased is Berhad Holdings Motor Chong Tanof Directors of Board The

of the Audit Committee Audit the of Abas binNordin

Independent Non-ExecutiveDirector Independent Non-ExecutiveDirector Independent Non-ExecutiveDirector Chairman Designation Attendance 5/5 4/5 5/5 • report of audit findings and made recommendations to improve the efficiency and effectiveness of internal control system at thevariousbusinessunits. ofinternalcontrol systemat toimprovetheefficiencyandeffectiveness reportofauditfindingsandmaderecommendations • withnewandusedvehiclesales, reviewandascertainadequacyofcontrolsassociated headofficefunctions andotherkey aftersalesoperations • reviewedcompliancewithpolicies, proceduresandrelevantrulesregulations • withtheCommitteeonauditplan, andagreed formulated andscopeofwork strategy • Activities ofinternalauditorsduringtheyearencompassedf The ChiefInternal tothe Auditor reportsdirectly Audit Committee. ofInternalAuditActivities Summary internalauditreports • consideration financialresultspriortosubmissiontheBoardfor quarterly • arisingfromauditwithexternalauditors annualauditedaccountsandprincipalmatters • andplanwithexternalauditors auditstrategy • Activities ofthe Audit Committeeduringtheyearencompassedreviewoffollowing: ofActivitiesAuditCommittee Summary the theBoardfromtimetotime. berequiredby otherfunctionasmay any of assessment or appraisal any review and function audit 4. internal the of members staff senior of termination or appointment any approve 3. ofpersonorpersonsasexternalauditors, recommendthenomination 2. andreportthesametoBoard, reviewthefollowing 1. The functionsofthe Audit Committeeshallbe, amongstothers: Functions performance ofitsmembers,performance and re-appointment, for externalauditorsarenotsuitable reasontobelievethat whetherthereisany (g) fromexternalauditors, letterofresignation any transaction, any including Group and Company the (f) within arise may that situation interest of conflict and transactions compliancewithaccountingstandardsandotherlegalrequirements. party related any (iii) significantandunusualevents,(e) and (ii) ofmajoraccountingpolicychanges, changesinorimplementation (i) resultsandyearendfinancialstatements, thequarterly theBoardofDirectors, by priortoapproval on: focusing (d) or whether and undertaken investigations or programme,processes audit internal the of results programme,processes,the audit internal the (c) outitswork, theadequacyofscope, authoritytocarry ithasthenecessary functionsandresourcesoftheinternalauditfunctionthat the by given (b) assistance the auditors; external the with report audit the and control internal of system the of evaluation the plan, audit the (a) procedure or course of conduct that raises questions of management integrity, raisesquestionsofmanagement procedure orcourseofconductthat oftheinternalauditfunction, actionistakenontherecommendation not appropriate totheexternalauditors, employees oftheCompany/Group ollowing: Report

of the Audit Committee Audit the of 19 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 20 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Statements Financial 35 33 32 31 30 2 28 27 26 25 25 22 9 NotestotheFinancialStatements CashFlowStatements ofChangesinEquity Statement ofChangesinEquity Statement Consolidated (InUSDEquivalent) IncomeStatement Consolidated IncomeStatements BalanceSheet(InUSDEquivalent) Consolidated BalanceSheets Reportofthe Auditors Declaration Statutory Directors by Statement Directors’ Report 21 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 22 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Tan EngSoon Dato’ Tan HengChew deemedinterest Shareholdings inwhichDirectorshave HajiKamaruddin @ Dato’ Abas binNordin AzmanbinBadrillah Tan Eng Soon Dato’ Tan HengChew directinterest Shareholdings inwhichDirectorshave those of of Directors’Shareholdingsareasfollows: yearendasrecordedintheRegister subsidiaries) who wereDirectorsat wholly-owned than (other corporations related its of and Company the of shares ordinary the in holdings deemed and holdings The ofthelastreportare: sincethedate Directors whoserved Directors oftheCompany 31December2005. sharesoutstandingat number ofordinary RM24,119,000 totalling tax less 10% is 2005 December 31 ended year the of respect in Directors the by recommended dividend final The aninterim dividend of5%taxexempttotallingRM16,749,000inrespecttheyearended31December2005on23September2005. (ii) afinaldividendof10%lesstaxtotallingRM24,119,000inrespecttheyearended31December2004on18June2005;and (i) Since theendofpreviousfinancialyear, paid: theCompany Dividends andprovisionsduringtheyearexceptasdisclosedinfinancial statements. transferstoorfromreserves There werenomaterial andProvisions Reserves theyear Net profitfor Results activities these of nature the in change significant no principal been the has during thefinancialyear.There statements. whilst financial Group, the the to in 28 Note companies in to stated as services are management subsidiaries the of of provision activities the and holding investment in engaged principally is Company The Principal Activities 31 ended year the for Company the of and Group the of statements financial audited December 2005. the and report their submitting in pleasure have Directors The Directors’ for the year ended 31 December 2005 December 31 ended year the for Seow Thiam Fatt HajiKamaruddin@ Dato’ Abas binNordin NgMannCheong Dato’ Azman binBadrillah Tan EngSoon Dato’ Tan HengChew Ahmad bin Abdullah

Report 0,6,6 602,200 602,200 304,266,662 304,266,662 10002 2,104,400 11,060,062 ..05 Bought 1.1.2005 ,2,0 328,000 2,628,000 At 20,000

2,992 Number of ordinary shares Number ofordinary

– – 3,2 36,172 130,926 M00 RM’000 RM’000 ru Company Group od 31.12.2005 Sold

13,164,462 – 304,868,862 304,868,862 – – 20,000 2,956,000 – – 2,992 – based on total on based At (iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of the Group and Group the of statements financial the in stated amount any render statements,would financial the that or report this in with dealt otherwise not (iv) ( misleading, financialstatements tothecurrentassetsinGroupandCompany would renderthevalueattributed that or Company the in and Group the in debts, doubtful for allowance the of amount the (ii) or debts, bad for off written amount the render would that (i) ofthisreport,At thedate circumstances: ofany theDirectorsarenotaware value. thelowerofcostandnetrealisable at beenstated allcurrent assetshave doubtfuldebts, allowancemadefor andadequate beenwrittenoff allknownbaddebtshave and (ii) (i) weremadeout, oftheGroupandCompany thefinancialstatements Before stepstoascertainthat: theDirectorstookreasonable Information Other Statutory duringtheyear. persontotakeupunissuedsharesoftheCompany toany No optionsweregranted Options GrantedOverUnissuedShares duringthefinancialyear. oftheCompany There werenochangesintheissuedandpaid-upcapital Issue ofSharesandDebentures means oftheacquisitionsharesinordebenturesCompan by benefits acquire to Company the of Directors enabling of object the had which year financial the of end the at and during arrangements no were There rental and receivable income rental and business of course ordinary the in Group significantfinancialinterests. certaincompaniesintheGroupfrom/towhichDirectorshave by expense payable the in companies certain with traded which companies in interests the which financial significant have of who Directors certain firm than other the interest a financial substantial a with Group,has Director the or which in member,Director company the a a is with Director the or of with corporation statements related a financial or Company the the by in made contract shown a of as reason Directors by companies) by related of receivable and benefit Company and a due than or (other received benefit emoluments any receive of to amount entitled aggregate become the nor in received has included Company the of Director year,no financial previous the of end the Since Directors’ Benefits corporations related its of and Company the of shares ordinary during thefinancialyear.the in interest any had 2005 December 31 at office holding Directors other the of None Tan ChongMotor Assemblies SdnBhd sharesofRM1.00each: Ordinary the of shares the in interested deemed also are shownasbelow: are Soon Eng subsidiaries owned Tan non-wholly in and shareholdings deemed their Chew of Details interest. Heng an has TanBerhad Holdings Dato’ Motor Tan that Chong Company,extent the to the subsidiaries of shares the in interests their of virtue By iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleadingor oftheGroupandCompany ofassetsorliabilities arisenwhichrenderadherence totheexistingmethodofvaluation whichhave iii) inadequate to any substantialextent, toany inadequate or of the Company misleading.of theCompany inappropriate, or

y or any otherbodycorporate. y orany ..05 Bought 1.1.2005 700,000 At

– for the year ended ended year the for od 31.12.2005 Sold

Directors’ 700,000 – 31 December 2005 December 31

At Report 23 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 24 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 for the year ended ended year the for 31 March2006 Kuala Lumpur, Vice-Chairman Ahmad binAbdullah Signed inaccordancewitharesolutionoftheDirectors: The auditors, MessrsKPMG, theirwillingnesstoacceptre-appointment. indicated have Auditors suchitem, norhasany nature ofthisreport. financialyearandthedate betweentheendofthat transactionoreventoccurredintheinterval unusual and material a of event or item,transaction any by affected substantially been not have 2005 December 31 ended year financial the for the Company of and Group the of operations the of results the statements, financial the to 18 Note in disclosed as receivable purchase hire of disposal on loss and investments other of disposal on gain debts, doubtful of allowance and down written inventories of reversals the for except Directors, the of opinion the In falldue. asandwhenthey to meettheirobligations Company the of and Group the of ability the affect substantially may or Directors,will the of opinion the which,in year financial the of end the after months twelve of period the within enforceable become to likely is or enforceable, become has Group the in company any of liability other or liability contingent No hasarisensincetheendoffinancialyear. that inrespectoftheGrouporCompany contingentliability any (ii) any of liabilities the secures which and year financial the of end the since arisen has that Company the of or Group the of assets the on charge any (i) ofthisreport,At thedate theredoesnotexist: Directors’ other person, or

Report 31 December 2005 December 31 Director Azman binBadrillah Kuala Lumpur Sumpah) (Pesuruhjaya Oaths Commissioner for No. W327 Mohd RadzibinYasin me: Before KualaLumpur at theabovenamed declaredby Subscribed andsolemnly Act, 1960. Declarations Statutory the of provisions the of virtue by true,and be to same the believing conscientiously declaration solemn this make I and belief,correct pages on out set statements financial the that I, 31 March2006 Kuala Lumpur, Vice-Chairman Ahmad binAbdullah Signed inaccordancewitharesolutionoftheDirectors: date. that on ended year the for flows cash and operations their of results the of and 2005 December 31 at Company the of and Group the of affairs of state the of view fair and true a give to as so Malaysia in standards accounting approved applicable and Companies Act,1965 the of provisions the with accordance pages Directors,on the out of set opinion the statements In financial the Lee Lai Teng , being the officer primarily responsible for the financial management of Tan Chong Motor Holdings Berhad, do solemnly and sincerely declare on31March2006.

27 to 62,

except for pages 28 and 30 which are expressed in USD, in expressed are which 30 and 28 pages for except 27 to 62, except for pages 28 and 30 which are expressed in USD,in expressed in are up which 30 drawn and are 28 pages for except Statement Director Azman binBadrillah Stat pursuant to Section 169(15) of the Companies Act,1965 Companies the of 169(15) Section to pursuant pursuant to Section 169(1 Section to pursuant utory are to the best of my knowledge and knowledge my of best the to are

by

D 6 ) of the Companies Act,1965 Companies the of ) eclaration

Directors 25 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 26 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Report 31 March2006 Kuala Lumpur, Chartered Accountants Firm Number: AF 0758 KPMG under made comment any include not did and qualification any to subject not were subsection (3)ofSection174the Act. subsidiaries the of statements financial the on reports audit The thosepurposes. usfor requiredby and explanations information satisfactory received have and we and form statements financial in consolidated the are of preparation statements the of purposes financial the Company’s for proper the and appropriate with content consolidated been have that subsidiaries the of statements financial the that satisfied are We their considered have we and statements financial the to 28 Note in identified andtheauditors’reportsthereonexceptasmentionedinNote28tofinancial statements. financial statements are auditors as acted not have we which of respect in subsidiaries The which of subsidiaries the and Company the by kept be to Companies Act,1965 the by required registers the and records other and accounting the (b) accounting approved applicable and 1965 Act,Companies the of provisions the with accordance in up drawn properly are statements financial the (a) In ouropinion: inthefinancialstatements. ofinformation the overalladequacyofpresentation We ouropinion. basisfor believeourauditprovidesareasonable statements. misstatement. financial the material that of assurance reasonable free give to evidence with are us provide to necessary consider we which explanations and information the all obtain to con We in body, a this report. as you, to opinion our report to and statements financial of content the the for person other any purpose.to other responsibility no assume on Companies not for the Act,Wedo and of 1965 174 Section with audit,accordance our on based opinion, independent an form to responsibility our is It istheresponsibilityofCompany’sfinancial statements Directors. 62, to 27 pages on out set statements financial the audited have We to the members of Tan Chong Motor Holdings Berhad of Holdings Tanmembers Motor the to Chong we have acted as auditors have been properly keptinaccordancewiththeprovisionsofsaid beenproperly actedasauditorshave we have Act. the of and Group the of statements financial the in with dealt be to 1965 Act, Companies the of 169 Section by required matters the (ii) year the for flows cash and operations their of results the and 2005 December 31 at Company the of and Group the of affairs of state the (i) atrueandfairviewof: soastogive standards inMalaysia du cted our audit in accordance with approved Standards on Auditing in Malaysia. These standards require that we plan and perform the audit the perform and plan we that require standards These Malaysia. in Auditing on Standards approved with accordance in audit our cted

An audit also includes an assessment of the accounting principles used and significant estimates made by the Directors as well as evaluating evaluating as well as Directors the by made estimates significant and used principles accounting the of assessment an includes also audit An Company; and Company; and date; ended onthat

of the Auditors the of

n ui in audit An lds xmnn, n ts bss eiec rlvn t te mut ad icoue i te financial the in disclosures and amounts the to relevant evidence basis, test a on examining, cludes except for pages 28 and 30 which are expressed in USD in expressed are which 30 and 28 pages for except Approval Number: 1150/03/06(J/PH) Partner Ng KimTuck . The preparation of the of preparation The .

The notes set out on pages The notessetoutonpages theBoardofDirectors issueby andauthorisedfor wereapproved The financialstatements Employeebenefits Deferred Otherpayables Long termanddeferredliab Minority shareholders’interests Treasury shares Reserves Sharecapital Capital andreserves Financed by: Net currentassets Borrowings Current liabilities Current assets Deferred taxassets Other receivables Hire purchasereceivables Development costs Other investments Investments inassociates Investments insubsidiaries Property, plantandequipment Borrowings Taxation Trade andotherpayables Cash andcashequivalents Other investments Hire purchasereceivables Trade andotherreceivables Inventories

liabilities

35 to

62 ilities

form an integral partof, anintegral form andshouldbe readinconjunctionwith, thesefinancial statements.

oe 2005 Note 16 17 11 15 13 14 13 12 16 12 11 10 2 9 7 6 5 7 9 8 3 5 4

1,499,949 1,146,192 1,499,949 1,607,888

664,854 on 31March2006. 241,926 485, 747,607 556,915 195,183 326,236 335,190 302,477 812,32 336,000 943,034 472,733 189,677 M00 M00 M00 RM’000 RM’000 RM’000 RM’000

56,842 75,630 15,853 17,920 14,793 18,567 (2,133) 9,110 4,727 5,806 2,444 883 – – – 5 207,381 594,137 10,950 289,797 277,866 1,409,439 16,681 1,056,134 722,267 336,000 1,409,439 815,302 (2,133) Group

1,271,220 183,95 109,589 672,224 336,624 307,852 455,918 208, 234,948 98,075 16,961 11,811 12,674 2004 5,909 1,806 7,809 296 – – – 1

Balance 373,943 327,727 424,691 411,443 336,000 424,691 57,591 28,613 12,246 13,248 77,576 50,748 59,009 (2,133) 2005 1,418 3,130 2,227 8,328 4,920 8,261 8,261 – – – – – – – – – – – 375,720 3,412 39,401 4,755 326,660 1,492 428, 12, 416,139 82,272 336,000 428, 53,111 (2,133) Company at 31 December 2005 December 31 at

Sheets 11,78 64,898 64,458 2004 8, 4,410 3,732 8,055

831 692 282 831 440 – – – – – – – – – – 7

27 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 28 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 (2004 –RM3.80=USD1.00), thebalancesheetdate. rulingat beingtheexchangerate ofRM3.76=USD1.00 Figures areconvertedintoUSDequivalent usingtheexchangerate oftheGroup. partoftheauditedfinancialstatements doesnotform presentedonthispage The information Employeebenefits Deferredliabilities Borrowings Long termanddeferredliabilities Minority shareholders’interests Treasury shares Reserves Sharecapital Capital andreserves Financed by: Net currentassets Taxation Borrowings Trade andotherpayables Current liabilities Cashandcashequivalents Otherinvestments Hirepurchasereceivables Trade andotherreceivables Inventories Current assets Deferred taxassets Hire purchasereceivables Development costs Other investments Investments inassociates Property, plantandequipment (In USDequivalent) Consolidated at 31 December 2005 December 31 at

Balance Sheet Balance

(For Illustration Purpose Only) Purpose Illustration (For

4,938 2,423 51,910 1,257 1,544 4,216

129,224 198,832 148,116 398,923 304,839 216,044 398,923 250,807 176,823 125,727 427,630 USD 64,342 15,118 20,114 86,766 89,146 80,446 89,362 50,446 2005 4,766 3,934 (567) ’000 650 28,839 54,574 176,901 190,070 25,809 48,408 156,352 2,882 76,262 1,555 2,055 73,123 370,905 88,585 4,463 3,108 81,014 4,390 277,930 88,421 370,905 214,553 119,978 3,335 54,815 61,828 334,531

USD 2004 (561) ’000 475

The notes set out on pages The notessetoutonpages share(sen)(net) Dividends perordinary share(sen) Basic earningsperordinary Net profitfortheyear Less: Minorityinterests Profit aftertaxation Tax Profit beforetaxation Share ofprofitassociates Interest income Interest expense Operating profit Revenue

– –

Associates Associates andsubsidiaries Company

35 to 62 form an integral partof, anintegral form andshouldbe readinconjunctionwith, thesefinancial statements. oe 2005 Note 20 22 21 18 18

2,949,253 130,926 133,568 183,356 207,779 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 (49,788) (49,536) (29,630) (2,642) 4,264 (252) 19.5 943 6.1 126,820 129,794 181,874 187,486 2,385,217

(2,974) (52,080) (52,006) (8,485) Group Income 2004 2,318 18.9 555 6.1 (74) for the year ended 31 December 2005 December 31 ended year the for

36,172 36,172 38,332 36,919 49,413 (2,160) (2,160) 2005 Statements 1,790 (377) 6.1 – – – 25,325 25,325 31,901 2,671 29,356 39,191

(6,576) (6,576) Company 2004 (126) 6.1 – – –

29 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 30 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Consolidated (2004 –RM3.80=USD1.00), thebalancesheetdate. rulingat beingtheexchangerate ofRM3.76=USD1.00 Figures areconvertedintoUSDequivalent usingtheexchangerate oftheGroup. partoftheauditedfinancialstatements doesnotform presentedonthispage The information share(UScents) Dividends perordinary share(UScents) Basic earningsperordinary Net profitfortheyear Less: Minorityinterests Profit aftertaxation Associates – andsubsidiaries Company – Tax Profit beforetaxation Share ofprofitassociates Interest income Interest expense Operating profit Revenue (In USDequivalent) for the year ended 31 December 2005 December 31 ended year the for

Income Statement Statement Income

(For Illustration Purpose Only) Purpose Illustration (For

48,765

784,376 USD (13,241) (13,174) 34,821 35,524 55,260 (7,880) 2005 1,134 (703) ’000 251 (67) 1.6 5.2 33,373 34,156 47,861 49,338 627,689

(13,705) (13,686) (2,233) USD 2004 (783) ’000 146 610 1.6 5.0 (19)

At 31December2005 – Dividends theyear Net profitfor 2005 At 1January At 31December2004 Dividends of Realisation theyear Net profitfor 2004 At 1January Group – – – 2005 interim 2004 final 2004 interim 2003 final

translation reserve reserve translation

Consolidated oe M00 RM’00 RM’000 Note 2 22 22 22 22 336,000

3,0 (,3) 3 ,6 10 3,2 6635 970,182 636,315 23 634,826 23 100 (2,133) (2,133) 336,000 1,366 336,000 23 (2,133) 336,000 aia sae o rpris eev pot pot Sbttl Total Sub-total profits profits reserve ofproperties shares capital oe1 Note 13 Note 13 hr Tesr rvlain rnlto o eand Retained ofretained Translation revaluation Treasury Share

– – – – – – –

(2,133)

Statement of Changes in Equity Equity in Changes of Statement upu n aiaiain Capitalisation Surpluson

0 – – – – – – – – – – – – – – – – – – – M00 M00 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

➤ ➤

Non-distributable 23

– (1,366)

– – – – Reserves Reserves 0 7214 2,6 1,056,134 722,267 1,056,134 722,144 722,267 100 722,144 100

➤

➤ 100 Distributable – – – – – – – 1096 3,2 130,926 130,926 130,926 (16,749) (24,119) (16,749) (24,119) (16,749) (24,119) 1,366 (16,749) (24,119)

812,202 for the year ended ended year the for 2,2 1680 126,820 126,820 126,820

➤ ➤

(16,749) 812,325 (24,119) 31 December 2005 December 31 –

1,146,192 (16,749) (24,119) –

31 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 32 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Statement The notes set out on pages The notessetoutonpages At 31December2005 – – Dividends theyear Net profitfor 2005 At 1January At 31December2004 – Dividends theyear Net profitfor 2004 At 1January Company for the year ended 31 December 2005 December 31 ended year the for – 2005 interim 2004 final 2004 interim 2003 final

35 to 62

form an integral partof, anintegral form andshouldbe readinconjunctionwith, thesefinancial statements. of Changes in Equity in Changes of oe M00 M00 M00 RM’000 RM’000 RM’000 RM’000 Note 22 22 22 22 3,0 (,3) 222 416,139 82,272 (2,133) 431,682 336,000 97,815 (2,133) 336,000 3,0 (,3) 222 416,139 82,272 (2,133) 336,000 3,0 (,3) 756 411,443 77,576 (2,133) 336,000 oe1 Note13 Note 13 aia sae profits shares capital hr Tesr Retained Treasury Share

– – – – – –

– – – – – – 1,4) (16,749) (24,119) 36,172 (16,749) (24,119) 36,172 (16,749) (24,119) 25,325 (16,749) (24,119) 25,325 Distributable Total Employeebenefitstransferred Employeebenefitspaid Interestreceived Interestpaid Incometaxesrefund Incometaxespaid Trade andotherpayables Trade andotherreceivables Hirepurchasereceivables Inventories (Increase)/Decreaseinworkingcapital: changes workingcapital profit/(loss)before Operating Shareofprofitassociates ofsubsidiary liquidation Gainfromvoluntary Reversalofimpairmentlosson Retirementbenefitscharged Property, plantandequipmentwrittenoff Lossondisposalofhirepurchasereceivables Lossondilutionofinvestmentinassociate Gainondisposalofotherinvestments Interestincome Interestexpense Goodwillwrittenoff Gainondisposalofproperty, plantandequipment Dividendincome andamortisation Depreciation ofdevelopmentcost Amortisation Adjustmentsfor: taxation Profitbefore Cash flowsfromoperatingactivities Net cash(usedin)/generatedfrom fromoperations Cash (usedin)/generated

investment insubsidiaries operating activities

(287,453) (200,601) (273,188) 183,356 228,902 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 (29,630) (63,375) (45,278) (3 (75,383) 29,630 24,417 (5,734) (4,264) (1,238) (5,652) 2005 1,314 3,768 2,911 1,182 4,264 2,244 5 (355) (943) ,654) 138 17 – – – 21,200 181,874 210,818

(2,318) (1,353) (104,554) (4,247) (8,485) (51,192) (42,948) 82,519 (72,345) (79,275) (184,665) Group Cash 2004 3,452 8,485 2,318 (248) (358) (555) 639

– – – – – – – – Flow Statements Flow

for the year ended ended year the for (46,776) 38,332 (1,790) (6,480) (7,778) (2, (9,30 2005 1,790 2,168 6,867 (377) 377 562 233 206 (40) (5 (67) 9 – – – – – – – – – – 6 7 7 6 31,901 2,671 ) 4,883 50,424 ) ) (2,671) (36,629) 43,501 (7,634) 48,582 (6,725) Company 31 December 2005 December 31 2004 (147) (126) (406) 732 126 369 1 (4) – – – – – – – – – – – 2

33 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 34 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 for the year ended ended year the for The notes set out on pages The notessetoutonpages Deposits Cash andbankbalances balancesheetamounts: comprise thefollowing Cash andcashequivalentsincludedintheflowstatements Cash andcashequivalents atendofyear Cash andcashequivalents atbeginningofyear Net increase/(decrease)incashand Berhad ofCagamas Repayment Berhad ProceedsfromCagamas oftermloans Repayment Proceedsfromtermloans ofbillspayable Repayment Proceedsfrombillspayable Dividendpaidtominorityshareholders Dividendspaidtoshareholdersofthe Cash flowsfromfinancingactivities Developmentcostspaid Purchaseofotherinvestments Purchaseofproperty, plantandequipment Proceedsfromdisposalofhirepurchase Proceedsfromdisposalofotherinvestments Proceedsfromdisposalofproperty, Dividendsreceivedfromassociates Dividendsreceivedfromsubsidiaries Dividendsreceivedfromotherinvestments Subscriptiontosubsidiar Acquisitionofsubsidiar company Acquisitionofsharesinassociate from/(Advanceto)subsidiaries Repayment Cash flowsfrominvestingactivities Cash Net cashgeneratedfrom/(usedin) Net cashgeneratedfrom/(usedin)

Flow Statements Flow

31 December 2005 December 31 35 y to , netofcash ies 62 share capital sharecapital form an integral partof, anintegral form andshouldbe readinconjunctionwith, thesefinancial statements.

plant andequipment

acquired (Note29)

Company Company

financing activities investing activities

receivables receivables equivalents

(575,672) 241,926 143,851 213,866 160,459 190,267 241,926 181,026 217,438 110,000 773,830 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 (61,424) (72,375) (23,596) (25,500) (40,868) 60,900 98,075 (7,600) (7,491) 2005 2005 6,378 5,652 (756) – – – – – – (262,952) 98,075 40,219 57,856 98,075 139,646 (41,571) 325,935 230,000 298,515 (1,325) (173,392) (87,460) (4,755) (19,284) (10,000) (156,898) (40,868) 25,070 Group Group 2004 2004 2,577 1,353 (600) 50 – – – – – –

(40,868) (40,868) 48,326 46,776 11,298 (1,399) (1,000) (7,491) 2005 2005 1,418 1,418 1,418 142 440 978 – – – – – – – – – – – – – – – (2,462) 36,629 (26,174)

(7,500) (4,755) (40,868) (40,868) Company Company 2004 2004 (933) 271 440 440 440 269 171 – – – – – – – – – – – – – – –

1. Summary of Summary 1. h Drcos r o te pno ta te urn mre vle o te eaud rpris r n ls ta ter ok aus s t 31 at as values book their than less no are properties revalued the of values market current the that opinion the of are Directors The International of adoption the on (“MASB”) Board Standards Malaysian Accounting the by issued provisions transitional the with accordance In primarily out carried was 1984 in properties certain of Revaluation cost. at equipment and plant property, state to policy Group’s the is It accumulated and depreciation accumulated less cost/valuation at stated are land freehold for except equipment and plant Property, Property, plantandequipment (d) related the of amount carrying the in included are which associates its and Group the between transactions on arising profits Unrealised date the from basis accounted equity an on associates of losses and gains recognised total the include statements financial consolidated The arethoseenterprisesinwhichthe Grouphassignificantinfluence, Associates butnotcontrol, policies. overthefinancialandoperating Associates (c) from resulting losses Unrealised consolidation. on eliminated are profits unrealised resulting the and balances and transactions Intragroup of date the from included are year the during of disposed or acquired subsidiaries of results accounting,the of method acquisition the Under indirectly, or directly power, the has Company the when exists Control Company. the by controlled enterprises those are Subsidiaries Basisofconsolidation (b) the to notes the in disclosed as except basis, cost historical the on prepared are Company the of and Group the of statements financial The Basisofaccounting (a) andareconsistentwiththoseadoptedinpreviousyears. theCompany theGroupandby accountingpoliciesareadoptedby The following retired fromactiveuse, lessimpairment losses, ifany. is asset the when date the at amount carrying the at stated are disposal for held and use active from retired equipment Property,and plant December 2005. depreciation. amountslessaccumulated theirexistingcarrying at continuetobestated and they updated been not have properties these of valuations the Equipment”, and “Property,on Plant (Revised) No.16 (“IAS”) Standard Accounting of one to policy accounting the in change a ofproperties. revaluation effect to intended not was and Company the in then shares bonus issuing of purpose the for impairment losses. unlesscostcannotberecovered. partially are alsoeliminated associates. the in interests Group’s the of extent the to partially eliminated are liabilities and assets ceases. significantinfluenceeffectively that commencesuntilthedate significantinfluenceeffectively that unlesscostcannotberecovered. transactionsarealsoeliminated intragroup goodwillasappropriate. assets isreflectedasgoodwillornegative net subsidiaries’ the of values fair the and cost acquisition statements.the financial between Group difference the The in reflected are values these and determined are assets net subsidiaries’ the of values fair the acquisition, of date the At disposal. of date the to up or acquisition of statements financial The activities. its from benefits ceases.effectively obtain usingtheacquisitionmethodofaccounting. Subsidiariesareconsolidated to as so enterprise an of policies subsidiaries operating and financial the govern Malaysia. in standards accounting approved applicable and 1965 Act,Companies the of provisions the with compliance in and statements, financials S ignificant are included in the consolidated financial statements from the date that control effectively commences until the date that control that date the until commences effectively control that date the from statements financial consolidated the in included are Freehold land is stated at cost/valuation lessimpairmentloss. cost/valuation at Freehold landisstated A ccounting P olicies Notes

to the Financial S Financial the to

Unrealised losses on such transactions such on losses Unrealised tatements 31 December 2005 December 31 to

35 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 36 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31

N otes 1. Summary of Summary 1. Expenditure capitalised as development costs in respect of a Completely-Knock-Down (CKD) model will be amortised upon commencement upon amortised be will model (CKD) Completely-Knock-Down a of respect in costs development as capitalised Expenditure Developmentcosts (h) Financial asset (g) thelowerofcostand marketvalue. at Investmentinquotedunittrustsisstated costintheCompany, at arestated Longterminvestmentsinassociates lessimpairmentlosswhereapplicable. the of are Directors the when made is allowance An cost. at stated are associates, and subsidiaries in than other investments, term Long Investments (f) 10% Intangibleasset (e) Motorvehicles Furniture, fixtures, fittingsandofficeequipment Plant, andequipment machinery Property, plantandequipment (d)

to the Financial Statements Financial the to was determined by the Directors based on the values of the underlying net tangible assets, after the revaluation of the properties of the of properties the of revaluation the after assets, subsidiaries, thepurposeasexplainedinNote1(d). for andwascarriedoutprimarily tangible net underlying the of values the on based Directors the applicable. by where determined loss was impairment less Company, the in cost/valuation at stated are subsidiaries in investments term Long thereisadiminutionintheirvaluewhichotherthantemporary.view that income statement. the in off written is and acquired assets identifiable net the of values fair the over acquisition of cost the of excess the represents Goodwill Goodwill model usefullifeorsalesvolumegenerated: the of shorter the over depreciated are equipment and machinery plant, its where subsidiaries the of one for except rates annual principal following the at lives useful estimated their of term the over assets other the of cost the off write to used is period.method straight-line The lease the or years 50 of shorter the over basis straight-line a on depreciated are buildings while years 999 to 34 from range which leases respective the of period the over instalments equal in amortised is land Leasehold amortised. not are work-in-progress and land Freehold Depreciation of commercialproduction, over theexpectedeconomicallifespanofmodelfive years. asset. theoriginal prohibited fromsellingorpledging also is Group asset.The original the from amounts equivalent collects it unless recipients eventual the to amounts any pay to obligation no has Group the and delay material without recipients more or one to flows cash the pay to obligation contractual a assumes but flows cash right contractual the retains Group the or asset; financial either the of are flows cash derecognition the receive for to rights qualifies contractual the of that transfers Transferderecognition. for qualifies transfer the and party, another to transferred are or expire de is asset Financial alltherisksandrewardsofownershipfinancialasset. but theGroupneithertransfersnorretainssubstantially retained is control if asset financial the in involvement continuing its of extent the to asset financial the recognise to continue shall Group The cost. at marketfundsarestated Investment inmoney other thantemporary. investments term Long Renovation Renovation S ignificant

A - ccounting recognised from the Group’s financial statements when the contractual rights to the cash flows from the financial asset financial the from flows cash the to rights contractual the Group’swhen the statements from financial recognised

in assets-backed notes are stated at cost less allowance for diminution for allowance less cost at stated are notes assets-backed in P (Cont’d) olicies (Cont’d)

12.5% 10% – – – 20% 20% 25% 20% in value when such diminution in value is value in diminution such when value in s to receive the receive to The valuation valuation The

1. Summary of Summary 1. Borrowings and trade and other payables are stated at cost. at arestated Borrowingsandtradeotherpayables Liabilities (m) have would that amount carrying the exceed not does amount carrying asset’s the that extent the to only reversed is loss impairment An na exceptional an of event external specific by caused was loss the unless reversed not is goodwill of respect in loss impairment An cash future estimated use, in value assessing In use. in value its and price selling net asset’s the of greater the is amount recoverable The and subsidiaries in investments than (other assets financial and assets tax deferred inventories, than other assets, of amount carrying The an have which investments Impairment liquid highly and banks with deposits and balances (l) hand, on cash of consist equivalents cash and Cash Cashandcashequivalents (k) out first in first the on mainly determined are inventories trading materials,and work-in-progress,inventories raw manufactured other of Cost are packs vehicle unassembled and assembly under vehicles motor of respect in vehicles, work-in-progress motor assembled locally of Cost an and labour direct materials, of consist vehicles motor assembled locally and inventories manufactured work-in-progress, of Cost value. thelowerofcostandnetrealisable at Inventoriesarestated Inventories (j) Trade doubtfuldebts. costlessallowancefor at arestated andotherreceivables Trade andotherreceivables (i) statement, unlessitreversesanimpairmentlossonarevalued asset, inwhichcaseitistakentoequity.income the in recognised is reversal recognised.The been had loss impairment no if amortisation, or depreciation of net determined, been recoverable the determine to used estimates the amount.in change a been has there if reversed is loss impairment an assets, other of respect In is note of value unittowhichtheassetbelongs. thecash-generating determined for time is the amount recoverable of the inflows, cash assessments independent largely market generate not does current that asset reflects an For asset. the that to specific rate risks the and discount money pre-tax a using value present their to discounted are flows arevaluedamount,asset iscarriedat inwhichcasetheimpairmentlossischargedtoequity. the unless statement, income the in recognised are losses Impairment amount. recoverable its exceeds belongs it which to unit generating indication such any If impairment. of indication any is cash- the or asset an of amount there carrying the exists,whenever estimated.asset’srecognised is the is amount loss recoverable impairment An whether determine to date sheet balance each at reviewed are associates), insignificant riskofchangesinvalue. basis. ontheweightedaverage basis whilstsparepartsaredeterminedmainly basis. actualcostonaspecificidentification varianceswhichapproximates standardcostadjustedfor determined at productionoverheads. proportionoffixedandvariable appropriate S xpected to recur and subsequent external events have occurred that reverse the effect of that event. ofthat reversetheeffect occurredthat xpected torecurandsubsequentexternaleventshave ignificant A ccounting P olicies (Cont’d)

N otes

to the Financial Statements Financial the to 31 December 2005 December 31 ture that ture

37 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 38 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31

N otes 1. Summary of Summary 1. Deferred tax is provided, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their and liabilities and assets of bases tax the between arising differences temporary method,on liability the provided,using is tax Deferred the at enacted substantially or enacted rates tax year,using the for income taxable the on payable tax expected the is expense tax Current the to except statement income the in recognised is tax Income tax. deferred and current comprises year the for loss or profit the on Tax Income tax (p) Repurchaseofshares Sharecapital (o) Employeebenefits (n)

to the Financial Statements Financial the to In calculating the Group’s and Company’s obligation in respect of a plan, to the extent that any cumulative unrecognised actuarial unrecognised cumulative any that extent the to plan, a of respect in obligation Company’s and Group’s the calculating In as recognised is employees by service past to relating benefit increased the of portion improved,the are plan a of benefits the When the for account also Company the and Group plan,the benefit defined their of terms formal the under obligation legal the than Other future of amount the estimating by calculated is plans benefit defined their of respect in obligation net Company’s and Group’s The ( asincurred. contributionstodefinedcontributionplansarerecognisedasanexpenseintheincomestatement for Obligations ( expense as recognised are contributions security social and bonuses salaries, Wages, ( be utilised. which the assetcan against profitswillbeavailable future taxable that itisprobable totheextentthat A deferredtaxassetisrecognisedonly rates tax using liabilities, and assets of amount thebalancesheetdate. enacted at enacted orsubstantially carrying the of settlement or realisation of manner expected the on based is provided tax profit. neither accountingnortaxable thetimeoftransactionaffects at that initial recognitionofassetsorliabilities The amountof deferred the and purposes tax for deductible not goodwill for recognised not statements. are Temporaryfinancial differences the in amounts carrying balance sheetdate, inrespectofpreviousyears. adjustmenttotaxpayable andany inequity, toitemsrecogniseddirectly itrelates extent that inwhichcase itisrecognisedinequity. sharesandpresentedasadeductionfromtotalequity.Repurchased sharesareclassifiedastreasury equity.in change costs,a as paid,attributable recognised consideration is directly repurchased,the including are of shares amount When the any of total net the to limited is asset recognised the Company, and Group the to benefit a in results calculation the Where i Definedcontributionplans ii) Shorttermbenefits i) i) Definedbenefitplans iii) S otiuin otepa. contributions totheplan. future in reductions or plan the from refunds future any of value present the and costs service past and losses actuarial unrecognised actuarial gainorlossisnotrecognised. the Otherwise,plan. the in participating employees the of lives in working recognised remaining is average expected portion the that over obligation, statement benefit income the defined the of value present the of greater the of percent ten exceeds loss or gain thebenefitsvestimmediately,that intheincomestatement. theexpenseisrecognisedimmediately vested.extent To become the benefits the until period average the over basis straight-line a on statement income the in expense an usingtheprojectedunitcreditmethod. anactuary by also calculated is and expense and liability practices.a past as their recognised from is arises obligation that constructive obligation The constructive government or bonds corporate quality bonds.high usingtheprojectedunitcreditmethod. anactuary by isperformed The calculation on date sheet balance the at yield market the is rate discount The value. present the determine to discounted is benefit that periods; prior and current the in service their for return in earned have employees that benefit occur. arerecognisedwhentheabsences suchassickleave absences compensated short termnon-accumulating absences,and compensated future to entitlement their increase that employees by rendered are services when recognised are leave and Group the of employees by rendered are ignificant A ccounting P olicies (Cont’d)

of the Company. Short term accumulating compensated absences such as paid annual paid as such absences compensated accumulating Company.term the Short s in the year in which the associated services services associated the which in year the in

1. Summary of Summary 1. Interest income is recognised in the income statement asitaccrues, Interestincome isrecognised intheincomestatement yieldontheasset. takingintoaccount theeffective Interestincome (u) Intereste (t) ( Revenue (s) foreign to exposure its hedge to options, and contracts exchange foreign forward namely instruments, financial derivative uses Group The Derivative financial instruments (r) Foreigncurren (q) All interestandothercostsincurredin connectionwithborrowingsareexpensedasincurred. ( ( profitorlossisrecognisedintheincomestatement. Any date. sheet balance at market to marked and instruments trading as for accounted are accounting hedge for qualify not do that Derivatives positions. assets, arisingfromtherelated profitorlossarisingisrecognisedonthesamebasisasthat Any ornetpositions. liabilities RM9.60) assets, underlying net the or as basis liabilities equivalent an on for accounted are purposes hedging for used instruments financial Derivative RM2.31) RM3.68) (2004: 100THB (2004 : 100Yen activities.exchange risksarisingfromoperational (2004: 1SGD RM8.97 RM3.19 RM2.26 100THB 100Yen 1SGD 1HK are asfollows: r closing The Financialstatemen (ii) Foreigncurrency transactions (i) i) Dividendinc iii) Hirepurc ii) rendered Goodssoldandservices i) UD M.6 20 UD RM3.80) (2004: 1USD RM3.76 1USD S Dividend income is recognised when the right to receive payment isestablished.Dividend incomeisrecognisedwhentherighttoreceivepayment net investment the on return of rate periodic constant a reflecting pattern a on based statement income the in recognised is revenue purchase Hire areperformed. asandwhentheservices renderedisrecognised intheincomestatement Revenue fromservices beentransferred tothebuyer.when significantrisksandrewardsofownershiphave statement income the in recognised is and receivable consideration the of value fair the at measured is goods of sale from Revenue in equity. year.the throughout applicable directly rates recognised exchange are translation average on at arising differences exchange Foreign at Malaysia Ringgit to date. sheet translated balance the at are ruling rates exchange consolidation, on arising adjustments value fair and goodwill including operations, foreign of operations. Group’s the of part integral an considered not are operations foreign Group’s The exch theforeign at Malaysia Ringgit statement. at date. Malaysia that Ringgit at to ruling translated rates are exchange date foreign sheet transactions. the balance the the of at date currencies the foreign at in denominated ruling liabilities exchange and of assets rates Monetary at Malaysia Ringgit to translated are currencies foreign in Transactions ignificant D M.8 (2004: 1HK RM0.48 xpense ates used in the translation of foreign currency monetary assets and liabilities and the financial statements of foreign operations operations foreign of statements financial the and liabilities and assets monetary currency foreign of translation the in used ates cy hase revenue

Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost,historical to currencies,at translated are foreign stated in are which denominated liabilities and assets Non-monetary A ccounting ome outstanding at theendofeachaccountingperiod.outstanding at ts offoreignoperations P olicies (Cont’d) ange rates ruling at the date ofthetransactions. thedate rulingat ange rates D RM0.49)

oeg ecag dfeecs rsn o tasain r rcgie i te income the in recognised are translation on arising differences exchange Foreign The revenues and expenses of foreign operations are translated to Ringgit Malaysia Malaysia Ringgit to translated are operations foreign of expenses and revenues The N

otes

to the Financial Statements Financial the to

Accordingly, the assets and liabilities liabilities and assets Accordingly,the 31 December 2005 December 31 39 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 40 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 untr,fitrs tig n fc qimn 3,3 5,272 Renovation 34,436 Motorvehicles Furniture, fixtures, fittingsandofficeequipment Plant, and machinery Buildings Shorttermleaseholdland Longtermleaseholdland Renovation 1,781 Work-in-progress Motorvehicles officeequipment 5,569 Furniture, fixtures, fittingsand 5,612 82,558 Plant, andequipment machinery 80,386 Buildings Shorttermleaseholdland Longtermleaseholdland N otes . Property, 2. Accumulated depreciation Renovation Work-in-progress Motor vehicles Furniture, fixtures, fittingsandofficeequipment Plant, andequipment machinery Buildings Short termleaseholdland Long termleaseholdland Freehold land Freehold land Cost/Valuation Group

to the Financial Statements Financial the to

P lant and

equipment E quipment 6,9 559 235 (9,733) 72,375 5,569 465,690 105,376 pnn Aqiiin Acquisition Opening aac o usday diin Dsoas rnfr of balance off Transfers Disposals Additions ofsubsidiary balance M00 M00 M00 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 89,481 13,997 36,160 46,776 5,344 8,2 2,1 (4,593) 24,417 187,824 pnn Chargefor Opening aac teya Dsoas f balance off Disposals theyear balance M00 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 RM’000 804 5,119 68,014 435 ,6 (4,473) 7,665 3,404 14,375 51,324 16,727 2,096 5 1,925 852 – – – – – – – – ,1 (9) ,5 (2) 55,629 (526) 1,000 1,655 7,021 (9,438) (295) 23,808 20,041 8,019 5,599 4,848 1,258 – 143 889

– – – – – – – 852 1) 96,662 (11,969) (17) 8,522 792 M00 M00 RM’000 RM’000 RM’000 3 84,736 26,888 996 100 111,016 12,365 25,836 90,739 51,020 47,763 55,629 96,662 36,116 59,996 54,623 ot auto Total valuation Cost 4,974

(120)

– – – – – 1 6 rte Closing Written – – – – – 53 533,358 (543) Directors’ rte Closing Written 48,622 0,848 50 39,078 (510) 56 207,122 (526) 3 5,612 638 1) 73,117 (16) – – – – – – – – – – 2, 17,567 54,728 2,239 17,616 533,358 12,365 25,836 47,763 55,629 96,662 87,736 – – – – – – – 12,365 25,836 47,763 5,612 111,016 87,736 90,739 777 Motorvehicles Furniture, fixtures, fittingsandofficeequipment Motorvehicles Furniture, fixtures, fittingsand Buildings Motorvehicles Furniture, fixtures, fittingsand Buildings Renovation Work-in-progress Motorvehicles Furniture, fixtures, fittingsand Plant, andequipment machinery Buildings Shorttermleaseholdland Longtermleaseholdland . Property, 2. Buildings Accumulated depreciation Cost Company Freehold land Group

P lant and E quipment (

office equipment office equipment office equipment C ont’d )

Opening Opening balance balance M00 M00 M00 RM’000 RM’000 RM’000 RM’000 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 1,019 2,511 1,446 558 152 690 309 375

11.05 11.04 31.12.2004 31.12.2004 31.12.2005 11.05 11.04 31.12.2004 31.12.2004 31.12.2005 Charge for Additions M00 M00 RM’000 RM’000 RM’000 M00 M00 RM’000 RM’000 RM’000 326,236 the year 25,836 30,196 16,551 23,545 56,288 70,120 90,739 9,588 3,373 2,227 1,584 1,399 1,305 At At N

507 119 524 562 otes 14 41 94 Net bookvalue Net bookvalue – 7,6 21,200 6,294 277,866 3,860 4,492 5,979 13,997 3,243 21,785 12,340 14,544 54,052 3,516 63,659 89,481 1,492

to the Financial Statements Financial the to

Disposals Disposals

At At (183) 13 1,398 (183) 25 3,625 2,466 (285) (285)

888 538

66 – – – –

balance balance 31 December 2005 December 31 charge forthe charge forthe Depreciation Depreciation year ended year ended Closing Closing 882 792 142 890 369 324 350 166 469 690 31 14 – –

41 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 42 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 Group’s shareofnetassets Represented by: Shareofpost-acquisitionreserve Less: Impairmentloss in1984 AtDirectors’valuation Atcost Buildings Shorttermleaseholdland Longtermleaseholdland Freeholdland N otes . Investmentsin 4. Investmentsin 3. Property, 2.

Unquoted shares, cost at thepurposeasexplainedinNote1(d). for oftheirpropertiesandwascarriedoutprimarily after therevaluation subsidiaries the of value assets tangible net the on based 1984 in conducted valuation Directors’ at stated are subsidiaries certain in Investments Unquoted shares The titlestocertainpropertieswithacostofRM4.17million(2004-RM16.87million)ha Titles beenasfollows: theendofyearwouldhave at been includedinthefinancialstatements have would that assets revalued the of depreciation,amount accumulated less cost historical carrying at the carried been buildings and land the Had ontheexistingusebasisconductedin1984. basedonprofessionalvaluations Directors’valuation at Certain landandbuildingsarestated Revaluation

to the Financial Statements Financial the to P lant and A S biire ubsidiaries ssociates E quipment ( C ont’d )

M00 M00 M00 RM’000 RM’000 RM’000 RM’000 15,853 15,853 13, 2005 1,

857 996

Group ve yet to be issued by therelevantauthorities. ve yettobeissuedby

2004 7,809 7,809 1,304 6,505

327,727 330,565 179,300 151,265 M00 RM’000 RM’000 M00 RM’000 RM’000 50,154 19,996 21,019 12,246 12,246 (2,838) 2005 2005 2005 8,925 214 – 51,049 9,516 20,290 21,019 4,755 4,755 326,660 329,565 179,300 150,265 (2,905) Company Company Group 2004 2004 2004 224 – Amortisation charge for theyear chargefor Amortisation Additions 1January Openingbalanceat Quotedunittrusts marketfunds Investmentinmoney Asset-backednotes Unquotedshares Hirepurchasefinancin (Thailand)CoLtd TCCapital Investmentholding StructurflexSdnBhd KanzenEnergy Ventures SdnBhd Nameofcompany oftheGroupareasfollows: Theassociates 6 Other 5. Investmentsin 4.

. Closing balance at 31December Closing balanceat Less: Cost Development Costs thesamesubsidiary. marketswhileClassBNotesandCofRM2millioneachweresubscribedby the debtcapital in investors to issued were Notes Class A of subsidiary.million a RM160 from receivables purchase hire of acquisition the for SPV the by used were SPV.the the of by issuance (“Notes”) the notes from asset-backed proceeds term The medium value nominal million RM164 of series first the issuance the with 2005 May in completed fully year.was the exercise during securitisation exercise Group’s The securitisation the for issued established were which each million RM2 of Notes C Class and Notes B Class comprise notes asset-backed The Short term Long term

I nvestments A ssociates

(Cont’d)

Manufacture oftruckside Principal activities curtains components

Thailand g Malaysia Malaysia incorporation Country of Country

Malaysia

N

otes

to the Financial Statements Financial the to

by a special purpose vehicle (“SPV”) vehicle purpose special a by M00 RM’000 RM’000 M00 RM’000 RM’000 56,842 50,000 2005 2005 4,727 1,182 5,909 5,909 6,842 5,806 4,000 1,806 05 2004 2005 45.45 ownership interest – % 5,909 5,909 4,584 181,360 2,591 1,806 1,806 50 25 1,325 Group Group Effective 50 50 25 31 December 2005 December 31 183,951 2004 2004 % N – – otes

of 43 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 44 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 Sparepartsandothers Newvehicles Usedvehicles Manufacturedinventoriesandtrading Unassembledvehiclepacks value: netrealisable inventoriesarecarriedat Thefollowing Sparepartsandothers Newvehicles Usedvehicles Manufacturedinventoriesandtrading Work-in-progress Unassembledvehiclepacks Morethanfiveyears Betweenoneandfiveyears Lessthanoneyear Less: doubtfuldebts Allowance for Less: Unearnedinterest Hirepurchasereceivables N otes 8 7

Inv . . net realisable value as a result of improving prices for motor vehiclesduringtheyear. valueasaresultofimprovingpricesfor net realisable RM4, of inventories of down write a of reversal year,a the was During there materials Raw materials Raw Hire PurchaseReceivables

to the Financial Statements Financial the to entories

505

,000 (2004 ,000

– RM816,000).

The reversal arose from an increase in increase an from arose reversal The 270,813 171,459 270,813 273,312 308,800 747,607 183, 344,571 M00 RM’000 RM’000 M00 RM’000 RM’000 (35,488) 23,724 75,630 34, 26, 49, 28, 92, 19,698 29,421 (2,499) 2005 2005 3 2, 1 , ,2 016 733 059 362 142 512 441 115 963 398 08 339,386 36,852 252,945 109,589 399,386 401,718 458,617 57,400 11,909 30,278 11,216 2,957 672,224 50,476 243,280 34,065 64,440 13,929 248,457 17,577 (2,332) (56,899) Group Group 2004 2004 662 378 Discounthouses Licensedbanks Depositsareplacedwith: Deposits 10 Otherreceivables, depositsand Less: doubtfuldebts Allowance for Trade receivables . 9

.

Cash andbankbalances Cash and shipmentofgoods for RM244,502,000 to amounting prepayments trade are 2005 December 31 at Group the of prepayments and deposits receivables, other in Included repayment of terms fixed no have rates. negotiated amountsduefromcertainsubsidiarieswhicharesubjecttointerestat except for and free interest unsecured, are that advances of respect in are subsidiaries from due amounts term long The RM3,525,752 to The shorttermamountsduefromsubsidiariesareinrespectofadvancestha amounted Group the in previously made debts doubtful for allowance against (2004 off written debts doubtful year, the During Long term Short term Trade andOtherReceivables Licensed financecompanies Less: doubtfuldebts Allowance for Subsidiaries Subsidiaries Tax recoverable – RM318,079). Equivalents mainly arrivingby mainly

prepayments prepayments thefirstquarterof2006.

485,883 292,730 186,984 193,278 181,026 151,135 241,926 181,026 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 21,100 60,900 (6,294) 2005 2005 6,169 8,791 t areunsecured, ondemand. interestfreeandreceivable – – – – 207,381 30,237 176,289 194,918 40,219 17,941 22,278 98,075 40,219 57,856 (18,629) Group Group 2004 2004 N 855 otes – – – – –

to the Financial Statements Financial the to 28,613 30,842 (2,229) 57,591 57,081 2005 2005 1,418 1,418 510 – – – – – – – – – 39,401 41,630 64,458 63,765

(2,229) Company Company 31 December 2005 December 31 2004 2004 693 440 440 – – – – – – – – –

45 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 46 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 Berhad AmountduetoCagamas Billspayable Berhad AmountduetoCagamas 12 Subsidiaries Subsidiaries andaccruedexpenses Otherpayables Trade payables 11 N otes . .

repayable to Cagamas Berhad and is subject to interest at 3.95%to4.95%perannum. Berhadandissubjecttointerestat toCagamas repayable charges,balance,financial outstanding the before represents Berhad defective. as Cagamas regarded to are due which Amount loans any back buy to and period months 60 a over Berhad Cagamas of behalf on loans purchase hire the administer to undertakes Group arrangement,the this Under Group. the to recourse with Berhad Cagamas to receivables purchase hire its of portion a sold institution, financial intermediary an via Group, The 2007to21December2012. from14May repayable long The The shorttermunsecuredloansoftheGrouparesubjecttointerest a 2.97%to4.70%(2004 oftheGrouparesubjecttointerestat The billspayable Long term Short term Borrowings and free interest unsecured, are that rates. negotiated whichissubjecttointerestat theamountduetoasubsidiary except for advances of respect in are subsidiaries to due amounts term long The The shorttermamountsduetosubsidiariesareinrespectofadvancestha Long term Short term Trade andOtherPayables

to the Financial Statements Financial the to Term loan Term loans

term unsecured term loans of the Group are subject to fixed rates of 4.00% to 6.50% (2004 6.50% to 4.00% of rates fixed to subject are Group the of loans term unsecured term

s

– – unsecured unsecured – unsecured

189,677 108,056 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 t areunsecured, ondemand. interestfreeandrepayable t 3.30%to4.20%(2004 81,621 2005

– 1.82%to3.25%)perannum. – – 234,948 115,489 119,459 Group

2004

– 3.75%)perannum. – –

– 3.50% to 7.80%) per annum and are and annum per 7.80%) to 3.50% have no fixed terms of repayment of terms fixed no have 302,477 281,500 472,733 391,454 M00 RM’000 RM’000 20,977 48,000 33,279 2005 2005 4,920 8,261 3,419 4,842 – 4,410 8,055 1,303 6,752 307,852 230,000 77,852 208,296 15,000 193,296 Company Group 2004 2004 – –

Unutilised taxlosses allowances capital Unabsorbed Otheritems Provisions Property, plantandequipment areasfollows: offsetting) (before Therecogniseddeferredtaxassetsandliabilities Deferredtaxliabilities Deferredtaxassets Theamounts, offsetting, determinedafterappropriate areasfollows: Deferred 16. ofsubsidiaries. andreserves Thisconsistsoftheminorityshareholders’proportionsharecapital Minority 15. Reserves 14. paid Issuedandfully 1 3 .

authority. tothesametaxation and wherethedeferredtaxesrelated liabilities tax current against assets tax current off set to right enforceable legally a is there where above offset are assets and liabilities tax Deferred its of all frank to income exempt tax and credit 31December2005ifpaidoutasdividends. retained profitsat tax 108 Section sufficient has Company the Board, Revenue Inland the by agreement to Subject sharesofRM0.50each. nary (2004 669,972,000 is held shares treasury deducting after issue in shares outstanding 2005,of December number 31 the At to purchaseitsownshares. Company’splan the approved 2005 May 20 on held Meeting General Extraordinary the in passed resolution a via Company the of shareholders The sharesofRM0.50each Ordinary Share Capital – – Authorised revaluation allowances capital

S T hareholders’ ax

I nterests

Treasury norightsto shareshave

vote , inotherdistribution. dividendsandparticipation M00 M00 M00 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 (10,570) (14,793) (5,683) (3,925) 2005 2005 8,078 9,110

44 288 – 6 10,743 10,950

(9,989) (1,905) (11,811) Group Group

2004 2004 N (106) (861)

333 otes 63 3,130

to the Financial Statements Financial the to 336,000 500,000 M00 RM’000 RM’000 2005 2005 2005 3,130 2,735 Group 437 (42) – – – – 336,000 500,000 3,412 3,120 3,412

andCompany Company Company – 669,972,000) ordi 669,972,000) 31 December 2005 December 31 2004 2004 2004 324 (32) – – – –

- 47 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 48 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 Under Intereston obligation Benefitstransferred Expenserecognisedintheincome Benefitspaid 1January at Netliability 1 differences Deductibletemporary Unutilisedtaxlosses Provisions Property, plantandequipment Deferred 16. N 7 otes .

Current service cost Current service Expense recognisedintheincomestatements 31December at Net liability inthenetliabilityrecognisedbalancesheets Movements of55. upontheretirementage eachcompletedyearofservice for salary monthly retirement benefitsofafactorthelastdrawn as well as 55 of age retirement the upon service of year completed each for contribution (“EPF”) Fund Provident Employees’ the less earned salary basic total of 17.0% to 16.0% of benefits retirement to entitled are employees eligible scheme, benefit Company’sdefined Group’sand the Under defined for Recognised liability Employee Benefits Group canutilisethebenefits. the which against available be will profit taxable future that probable not is it because items these of respect in recognised been not have assets tax Deferred legislation. tax current under expire not do differences temporary deductible and losses tax allowances,unutilised capital unabsorbed The allowances capital Unabsorbed items: thefollowing No deferredtaxhasbeenrecognisedfor

to the Financial Statements Financial the to –

provision inprioryear capital allowances capital

T ax (Cont’d)

benefit obligations benefit obligations statement s

M00 M00 M00 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 17,920 16,961 17,920 2005 2005 2005 1,314 1,314 (355)

620 694 – – 16,961 17,756 16,961 (4,247)

Group Group Group

2004 2004 2004 3,452 1,071 1,997 3,452

384 –

M00 RM’000 RM’000 18, 16, 2005 2005 2005 2005 2,3 8,328 8,282 8,328 624 313 (21) (57) 19 13 96 47 49 96 – – 7 15,717 14,000 1,461 8,282 7,542 8,282

Company

Company Company Group 2004 2004 2004 2004 289 732 447 285 732 (38) 12 (4) – 5 income Otheroperating expenses Otheroperating expenses Administration Distributioncosts rendered Services Saleofgoods Dividendincome Hirepurchaseincome rendered Services Saleofgoods Operating 18. increases Futuresalary Discountrate expenses Administration Distributionexpenses 1 7 .

Operating profit Gross profit Cost ofsales Revenue (expressedasweightedaverages): thebalancesheetdate Principal actuarialassumptionsusedat Liability fordefinedbenefitobligations The expense isrecognisedinthefollowinglineitemsincomestatements Employee Benefits P rofit

(Cont’d)

(2,481,433) (2,431,474) 2,949,253 2,823,855 (181,548) 467,820 104,751 207,779 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 (21,411) (86,579) (49,959) 29,497 20,647 2005 2005 1,314 1,302

12 –

187,486 10,512 414,019 2,385,217 24,704 75,416 2,285,097 (19,660) (73,700) (143,685) (1,971,198) (35,728) (1,935,470) Group Group 2004 2004 3,452 3,444 N

otes – 8

to the Financial Statements Financial the to (12,592) 36,919 49,413 49,413 46,776 2005 2005 2005 2,637 % 107 6.5 7.0 96 96 (9) – – – – – – –

29,356 39,191 39,191 36,629 2,562 (10,360) Company Company 31 December 2005 December 31 2004 2004 2004 % 732 732 553 6.5 7.0 (28) – – – – – – –

49 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 50 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 Inventorieswrittenoff Inventorieswrittendown Goodwillwrittenoff andamortisation Depreciation Fees Remuneration Company’s Directors ofdevelopmentcost Amortisation doubtfuldebts Allowancefor Auditors’remuneration andaftercharging: exchange Gainonforeign Otherinvestments Unquotedsubsidiaries Dividendincomefrom: Baddebtsrecovered Operating 18. N otes

(2004 (2004 RM68,548 are Company the of and Group the of benefits-in-kind Directors’ of value monetary estimated The aftercrediting: profitisarrivedat Operating

to the Financial Statements Financial the to Warranty claim Rental expenseonlandandbuildings Retirement benefitscharged Property, plantandequipmentwrittenoff Loss ondilutionofinvestmentinassociate Loss ondisposalofhire exchange Loss onforeign Bad debtswrittenoff Reversal ofimpairmentlosson doubtfuldebts Reversal ofallowancefor Rental incomeonlandandbuildings Reversal ofinventorieswrittendown Inventories writtenback liquidation Gain fromvoluntary Gain ondisposalofotherinvestments Gain ondisposalofproperty, plant Finance leaseinterestincome

– – – Associates RM65,481)respectively. over provisioninprioryear current year P rofit (Cont’d)

purchase receivable

–

r – – realised unrealised ealised

of subsidiary of subsidiary investment insubsidiaries

and equipment

s (Note30)

M00 M00 M00 RM’000 RM’000 RM’000 RM’000 10,541 24,417 2005 4, 5,734 1,272 1,238 5,652 1,314 3,768 2,165 2,911 7,286 1,182 8 2,386 , 505 114 1 101 138 550 153 258 285 6 23 17 7 42 (1) – – – – – – – 2

21,200

Group 2004 1,353 6,889 3,452 6,840 6,527 5,543 2,411 816 124 358 151 171 639 227 537 228 286 248 329 (12) 13 36 – – – – – – – – – 4

46,776 2005 5,357 – RM65,481) and RM68,548 and RM65,481) 413 562 258 129 40 9 35 67 – – – – – – – – – – – – – – – – – – – – – – – 6 36,629 4,868 Company 2004 147 407 732 369 228 406 134 21 35 (6) – – – – – – – – – – – – – – – – – – – – –

Over Otheritems Unrecogniseddeferredtaxasset Tax incentives Tax exemptincome income Non-taxable Non-deductibleexpenses Doublededuction income 20%onchargeable oftaxat Effect taxrate Incometaxusingstatutory taxation Profitbefore Tax expenseonshareofprofitassociates Under/(Over)provisioninprioryears differences andreversaloftemporary Origination Deferredtaxexpense Over Malaysian 20 ContributiontoEPF 1 9 . .

Reconciliation ofeffectivetaxexpense Current taxexpense Tax Expense – was year the of end the at Directors) (including Company the of and Group the of employees of number The andothercosts Salary Employee Information 25)respectively. company company

provision inprioryears – Current below RM500,000

provision inprioryears

(2004 – RM of individual 5 00,000)

128, 114,844 183,356 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 13,349 49,788 56,677 51, 49,788 45,587 52,643 (6,889) (1,667) (7,056) 2005 2005 2 4,889 3,782 (732) (160) (199) (519) ,7 193 929 339 252 167 97 104,530 11,166 93,364 52,080 56,152 50,925 181,874 52,080 51,372 55,657 (4,072) (4,285) Group Group 2004 2004 5,602 N (248) (274) (113) (188) (488) 131 805 213 421 otes 74

to the Financial Statements Financial the to 4,231 10,733 38,332 (2004 (5,900) (5,319) (5,900) 2005 2005 9,507 8,707 2,160 8,060 2,249 2,160 1,878 7,778 800 416 282 (19) – – – – – – 8,273 7,660 6,576 7,410 8,932 31,901 6,576 7,634 7,634 – (2,622) Company Company 3,545) and 3 and 3,545) 31 December 2005 December 31 2004 2004 (834) (113) (834) (224) 8 613 92 284 (2004 – – – – – – 9

51 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 52 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 Other operations Otheroperations Hirepurchase financing aftersale Vehicles assembly, distributionand Segmental 23. (2004 5%persharetaxexempt (2003 Interimpaid: 2004 Finalpaid: Ordinary 2 shares Weighted numberofordinary average Less: Treasury shares Earnings 21. N 2 otes .

The Group comprises the following mainbusinesssegments: The Groupcomprisesthefollowing Business segments assets and expenses. comprisecorporate itemsmainly Unallocated basis. reasonable a on allocated be can that those as well as segment a to attributable directly items include liabilities and results,assets Segment Malaysia. structure. reporting internal Group’sthe segments. of business respect in presented is information Segment of 2.028million(2004 million RM40.868 (2004 of 2005 December 31 ended year financial the for dividend net the on based is share ordinary per dividend of calculation The share Dividend perordinary shares outs dividend final proposed The Proposed finaldividend Dividends Or (2004 Weighted shares averagenumberofordinary million RM130.926 of shareholders to attributable profit net the on based is share sharesoutstandingduringtheyear of669.972million(2004 numberofordinary RM126.820 million)andtheweightedaverage ordinary per earnings basic of calculation The Basic earningspershare

dinary sharesinissue dinary to the Financial Statements Financial the to – RM40.868 million) and the number of ordinary shares in issue during the year of 672 million (2004 million 672 of year the during issue in shares ordinary of number the and million) RM40.868 s

– Inter-segment terms. pricingisdeterminedbasedonnegotiated services services P

10%persharelesstax tanding at 31December2005 tanding at er I nformation – – O 5%persharetaxexempt) 10%persharelesstax) rdinary rdinary – 2.028million). S hare

Segment information by geographical segments is not provided as the activities of the Group are located principally in principally located are Group the of activities the as provided not is segments geographical by information Segment for the year ended 31 December 2005 December 31 ended year the for – Group has not been accounted for inthefinancialstatements. has notbeenaccountedfor – – – Property andinvestment holdingactivities. Provision ofhirepurchasefinancing. distribution ofautomotivespare and passenger of distribution and Assembly

of 10% less tax tota tax less 10% of

The business segments are based on the Group’sthe and on management based are segments business The

parts andinsuranceagency.

l ling RM24,119,000 based on total number of ordinary ordinary of number total on based RM24,119,000 ling commercial vehicles, automotive workshop automotive vehicles, commercial

– 672 million) less treasury shares held shares treasury less million) 672 669,972,000 672,000,000 (2,028,000) M00 RM’000 RM’000 40,868 16,749 24,119 2005 2005 Group 669,972,000 672,000,000 40,868 16,749 24,119 (2,028,000) andCompany – 669.972million). 2004 2004 services, –

Contingent andamortisation depreciation 24. Non-cashexpensesotherthan andamortisation Depreciation expenditure Capital liabilities Unallocated assets Unallocated Investmentinassociates Minorityinterests Tax expense Shareofprofitassociates Interestexpense Interestincome Operatingprofit expenses Unallocated Inter-segment revenue Revenuefromexternal Segmental 23. No provision has been made for any potential liability as the Group believes that the outcome of the case will be favourable totheGroup. theoutcomeofcasewillbefavourable astheGroupbelievesthat potentialliability any No provisionhasbeenmadefor 2004. theJudgewithcostsincause on20May totheJudgeinChambers andthesamewasallowedby filedanappeal have plaintiffs suit.mentioned The above the out struck Court High 2004,the January 16 Claim.On of Statement the in alleged as investment project specific a to relation in injure to conspiracy for Court High the by awarded be RM150,000,000.to of relief sum other the any and costs claimed also plaintiffs The 2003, July 11 On third two Total liabilities Segment liabilities Total assets Segment assets Net profitfortheyear Profit beforetaxation Segment result Total revenue Business segments

I L

nformation (

iabilities

customers

- Cont’d parties filed a claim against the Company and its wholly owned subsidiary,owned wholly its and Company the against claim a filed parties in damages general for Bhd Sdn Cars Euro TC 1,556,547 2,930,125 2,928,507 ) M00 M00 M00 M00 M00 M00 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 163,162 196,954 23,510 67,620 15,853 05 04 05 04 05 04 05 04 05 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 Vehicles assembly, 1,705 1,618 sale 943 distribution and after s

8,220 19,617 235,982 7,809 1,168,194 167,768 912 2,361,340 2,360,428

86,475 srie financing services 555

272,184 14,579 20,746 20,647 31,087 602 144 99 70 purchase – – – 22,448 24,704 24,704 289 49 53 15,774 – 400,292 Hire –

3,375 58,918 1,934 3,474 2,019 4,611 180 operations 99 97 – – Other – 2,343 3,407 3,322 85 732 1,534 932 120 – 51,317 N (5,092) otes (5,092)

lmntos Consolidated Eliminations to the Financial Statements Financial the to – – – – – – – – – – – – – – – – – –

(4,234) (4,234) 4,264 (5,688) 2,949,253 1,000,044 805,615 2,164,803 261,301 130,926 (2,642) 183,356 1,887,649 2,949,253 15,853 207,779 213,467 194,429 (29,630) (49,788) 25,599 72,375 2,404 31 December 2005 December 31 943 – 555 2,318 187,486 192,559 – 2,385,217 9,241 87,460 792,542 540,666 251,876 1,865,357 237,745 7,809 1,619,803 126,820 181,874 (8,485) (2,974) (52,080) 21,200 2,385,217 (5,113) 53 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 54 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 These transactions have been entered into in the normal course of business and have been established under negotiated terms. undernegotiated been established beenenteredintointhenormal courseofbusinessandhave Thesetransactions have Sales areasfollows: partyrelationships Controllingrelated Related 26. Authorisedandcontractedfor Jointventureinvestment Authorisedbutnotcontractedfor Property, plantandequipment 25 N otes .

( ( Transactions withrelatedparties ( ( commitments:Capital Commitments ii) Significant transactions with Tan Chong International Limited and its subsidiaries, companies in which certain Directors of the Company, the of Directors certain which in companies subsidiaries, its and Limited International Chong Tan with transactions Significant ii) in companies Groups, (“APM”) Berhad Holdings Automotive APM and (“WTCH”) Berhad Holdings TC Warisan with transactions Significant i) Thesubstantialshareholder oftheCompany, Tan SdnBhd ChongConsolidated ii) ThesubsidiariesasdisclosedinNote28. i)

to the Financial Statements Financial the to Authorised and contracted for Authorised andcontractedfor With WTCHGroup are asfollows: Company,the interests,of Dato’ financial Directors Tan substantial namely certain and have Tanwhich Chew to Heng deemed Soon, are Eng Purchases Dato’ namely Tan HengChewand Tan EngSoon, substantialfinancialinterests, aredeemedtohave areasfollows: terms. undernegotiated beenestablished beenenteredintointhenormalcourseof businessandhave These transactionshave Rentalexpensepayable Rentalincomereceivable Sales Purchases With APMGroup Rentalincomereceivable P arties Rental expensepayable Sales Purchases

171,154 147,373 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 22,630 2005 1,151

21,489 19,189

Group .

2004 2,300

– 129,339 M00 RM’000 RM’000 RM’000 RM’000 (2,599) (7,628) 2005 2005 2005 9,652 (951) (686) (166) 194 372 788 – – – –

107,334 5,574 (1,478) (11,357) Company Group Group 2004 2004 2004 (951) (614) (265) 152 726 – – – – –

Technical fees Sales Related 26.

Subsidiaries ( ( ( v) Significanttransactionswith Auto DuniaSdnBhd iv) and subsidiaries its and Company, the of shareholder substantial a is who Group, Limited Co Motor Nissan with transactions Significant iii)

areasfollows: partytransactionsotherthanthosedisclosedelsewhereinthefinancial statements Significant related terms. undernegotiated beenestablished beenenteredintointhenormalcourseofbusinessandhave These transactionshave Sales ( ( terms. undernegotiated beenestablished beenenteredintointhenormalcourseofbusinessandhave These transactionshave Purchases associates, areasfollows: b) a company connectedtocertainDirectorsoftheCompany, acompany Dato’ namely Tan HengChewand Tan virtueofSection122A EngSoonby b) inwhichcertainDirectorsoftheCompany, acompany namely Ahmad bin Abdullah and substantialfinancial Azman binBadrillahhave a) P arties ( Purchase ofproperty, plantandequipment Interest expensepayable Rental expensepayable Rental incomereceivable feesreceivable Management Interest incomereceivable Dividend incomereceivable of theCompanies Act, 1965. interests; and Cont’d

payable payable ) :

N

otes

to the Financial Statements Financial the to 1,050,934 M00 RM’000 RM’000 M00 RM’000 RM’000 RM’000 RM’000 (14,780) (46,776) 10,388 (2,538) (1,790) 2005 2005 2005 4,178 1,305 179 393 (54) 3,741 882,559 3,431 (15,197) (2,478) (2,671) (36,629) Company Group Group 31 December 2005 December 31 2004 2004 2004 912 126 393 (54) 55 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 56 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 7 Financial 27. N otes operations and to mitigate the effects of fluctuations incashflows. offluctuations theeffects andtomitigate operations The Groupmonitorsandmaintainsa level ofcashandequivalentsbankfacilitiesdeemedadequa Liquidity risk its monitors Group The Yen. Japanese in denominated are that purchases on wheneverdeemednecessary. andundertakesselectivehedging exchange exposureregularly mainly risk currency foreign incur Company the and Group The Foreign currency risk adversemovementinitscost of fundsfromexternalsources. hedgeagainst 12 topartially resources. On the other hand, the Group provides hire purchase loans fixedat rates for tenures of up to 7 years. regularintervals. at rates arefixed. certainperiodsduringwhichtheinterestrates Excess fundsareplacedwithlicensedfinancialinstitutionsfor from60to96months. Berhadandcertaincommercialbankwhicharefixedwithtenureranging borrowings fromCagamas and loans term for except rates interest floating to subject are Group the of capital working the finance to obtained been have which borrowings The deposits. earning interest in funds excess of placement the and borrowings interest-bearing from arises risk rate interest to Group’sexposure The Interest raterisk amountofeachfinancialasset. thecarrying are representedby Company the and Group the for risk credit to risk.exposure credit maximum of The concentrations significant no were date,there sheet balance At risksexposuretolicensedbanksandfinancialinstitutionsdiscounthousesisminimal. creditandinterestrate view that houses. discount and institutions financial licensed with deposits term short and funds market money in funds excess only. banks licensed with into entered are instruments financial derivative involving Transactions under vehicles the over claims ownership has Group the credit and business, Group purchase the hire financing. from of financing respect In requiring basis. customers ongoing all an on on performed monitored is are exposure evaluations the and place in policy credit informal an has Group Group. the from credit of finance line the with secure to mainly basis selective rests a on risk collection Group’s the such, as and companies finance purchasers. corporate selective and dealers,dealers car part used spare to companies. credit extends also Group The outside by financed largely still are sales vehicles New units,In respectoftheoperating arespecifictotheirrespectiveindustriesinplace. creditpoliciesthat Credit risk The Group’s andtheCompany’s financialinstrumentsaresetoutinnote1(r). toderivative accounting policiesinrelation items the on effects being hedged. opposite by offset are changes such acquisition, to subsequent changing rates market of risk the to subject are these While rates. exchange foreign in fluctuations to exposure reduce to used are options or contracts exchange forward like instruments financial Derivative on anongoingbasis. Group. the of risks currencies and interest the units. operating respective the by managed are Group’sactivities the business core Group’sCompany’sto the the of relation and course in business. normal risk the Credit in arise risks currencies and credit, rate to interest Exposure Financial riskmanagementobjectivesandpolicies

to the Financial Statements Financial the to

I Tovolatility, rate interest of impact the minimise Note in disclosed as Berhad Cagamas from borrowings rate fixed up taken has Group the nstruments

The Group does not use leverage derivatives for hedging purposes and also does not use any derivatives for speculative purposes. speculative for derivatives purposesandalsodoesnotuseany hedging for derivatives The Groupdoesnotuseleverage

The Treasury Department monitors the interest rate trend and currencies exchange rate movements rate exchange currencies and trend rate interest the monitors TreasuryThe Department

For used car dealers, spare part dealers and selective corporate purchasers, the purchasers, corporate selective and dealers part spare dealers, car used For

The Group has a centralised a Treasury manages has Group that The Department

The Group also places a significant portion of its of portion significant a places also Group The

These loans are funded internalby and external te by management tofinance theGroup’s management te by

Bank guarantees are required are guarantees Bank The management reviewsthe The management

The management is of the of is management The Quotedunittrusts market funds Money Amountdueto Amountduefromcertainsubsidiaries Financialassets Unsecuredfixed Amountdueto Unsecuredfixed Unsecuredbills Asset-backednotes Shorttermdeposits marketfunds Money Financial 27.

Financial assets Group table. in thefollowing fairThe valuesaggregate of money market funds and amount due to Cagamas Berhad carried on the balance sheet 31at December are represented Recognised financialinstruments Fair values Financial liabilities Company Financial liabilities Financial assets Effective interestratesandrepricinganalysis

I nstruments

certain subsidiaries Berhad Cagamas payable payable

shorttermloans rate rate long rate

(Cont’d)

term loan

s

fetv Effective Effective Effective Effective neet Within >5 Within interest interest >5 Within interest ae oa 1ya yas ae oa 1ya years 1year Total rate years 1year Total years rate 1year Total rate years 1year Total rate R’0 R’0 R’0 % M00 M00 RM’000 RM’000 RM’000 % RM’000 RM’000 RM’000 % RM’000 RM’000 RM’000 % RM’000 RM’000 RM’000 % .5 7,412 3.15 60,897 3.15 29,526 24,730 281,500 48,000 54,256 5.98 48,000 391,454 5.74 391,454 4.04 3.42 4,000 6,842 181,026 181,026 8.69 6,842 2.89 2.01

mut au aon value Fair amount Carrying value Fair amount Carrying 2005 2005

M00 M00 M00 RM’000 RM’000 RM’000 RM’000 682 57,747 50,905 56,842 50,000 6,842 – – – – 4,000 7,412 60,897 281,500 1 –5 2005 neet Within interest – – – – .2 029 40,219 40,219 3.02 .4 5,597 2.84 94,755 2.84 54,256 23,596 230,000 77,852 5.67 4.43 193,296 193,296 2.26

37 1,0 15,000 15,000 3.75 .1 ,9 2,591 2,591 4.21 6,842 N otes 8,5 185,053 2,591 182,462 183,951 181,360 2,591 – – – – –

to the Financial Statements Financial the to 2004 2004 200 31 December 2005 December 31 – – – 5,597 94,755 230,000 4

1 –5 – – – –

57 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 58 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 termloan Fixedrate Berhad AmountduetoCagamas Financial 27. N otes

Forward foreign exchange contracts/options Group 31 Decemberare: amountandfairvalue offinancialinstrumentsnotrecognisedinthebalancesheetat The contractedcarrying Unrecognised financialinstruments term long the as made be not could value fair of estimate reasonable termsarenotspecified. repayment a subsidiaries, from due and to due amounts term long the of respect In ofthesefinancialinstruments. shorttermnature value duetotherelatively approximate payables other current and trade and receivables other current and equivalents,trade cash and cash of amounts carrying The Company (2004 RM1,806,000 31December2005wasRM5,186,000(2004 at oftheunquotedcompany statements of cost original its at carried is investment be This not cost. could or – value timeliness of fair constraints of the estimate within reasonable practicable a price,not market is quoted it as available made no also is there where shares unquoted in investment the For balance sheet. (2004 RM4,000,000 of cost original its at carried is cost.investment or This timeliness of constraints the within practicable made not is be it as not could value fair of estimate reasonable a price, market quoted available no is there where notes asset-backed in investment the For The fairvalueofquotedunittrustsistheirbidpricea other and trade equivalents, cash ofthesefinancialinstruments.nature and cash of respect In approximate date. amounts carrying the sheet borrowings, term short and balance payables other and the trade receivables, at instruments similar for rates interest current cash relevant using the discounting flows by determined been have above listed Berhad Cagamas to due amount and funds market money of values fair The Financial liabilities M,0,0) n h blne he.A ya ed te ru’ pootoae hr o te e tnil ast bsd n h adtd financial audited the on based assets tangible net the of share proportionate Group’s the end, year At sheet. balance the in RM1,806,000)

to the Financial Statements Financial the to

I nstruments s

(Cont’d)

to purchase foreign currenc

mut au aon value Fair amount Carrying value Fair amount Carrying value Fair amount Carrying value Fair amount Carrying t thebalancesheetdate. ies

8,5 367,243 313,834 383,756 329,500 3,2 599,295 630,029 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 M00 M00 M00 RM’000 RM’000 RM’000 RM’000 426 53,409 54,256 2005 2005 – RM4,709,000). their 2,5 330,677 242,668 88,009 322,852 245,000 77,852

fair value due to the relatively short term short relatively the to due value fair 305,542

2004 200 4

320,214 – Nil) in the in Nil) their fair Tanahku HoldingsSdnBhd Tan Chong Trading (Malaysia) Tan ChongMotor Assemblies Tan ChongIndustrialEquipment Tan ChongIndustrialEquipment Tan ChongEkspres Auto Servis Tan Chong Agency SdnBhd Tan Chong&SonsMotor SungeiBintangSdnBhd RustcareSdnBhd PremiumCommerceBerhad PerwiramasSdnBhd *** Pemasaran GantiSdnBhd Alat Hikmat Asli SdnBhd E-Garage Auto Services Edaran Tan ChongMotor Cyberguard Vehicle Security CeranamasSdnBhd SdnBhd BijakSecurityServices AutokitaSdnBhd AutoResearchandDevelopment AutoInfinitiSdnBhd AutoComponentsManufacturers IncorporatedinMalaysia: Name Theprincipalactivitiesofthesubsidiaries, areshownbelow: andtheinterestofCompany theirplacesofincorporation Subsidiaries 28. ConstantKnight(M)SdnBhd *

SdnBhd Company SdnBhd Company Sdn Bhd Technologies SdnBhd SdnBhd Sdn Bhd SdnBhd SdnBhd SdnBhd (Sabah) SdnBhd

SdnBhd

Trading andmarketingofcar Distribution ofcommercialvehicles Property holding Distribution ofcommercialvehicles, andsaleofmotorvehicles Assembly and Automobile workshopservices Automobile workshop services Automobile workshopservices Property holding property/ trading ofparts equipmentandmachineries heavy andproperty Insurance agency and hirepurchasefinancing Property holding Rust proofing securitisation Special purposeentityfor Investment holding Marketing ofautoparts Property holding Property andinvestmentholding Provision of Insurance agency Principal activities Research anddevelopment Distribution ofautomotiveaccessories ofmotorvehicles Assembly Trading ofcarair- t Trading Property holding rading of car grooming products rading ofcargrooming and marketingof i nvestment holding s ecurity conditioners s ervices ervices motorvehicles asset-backed

and alarms

holding engines and engines N and spareparts

otes and

to the Financial Statements Financial the to

05 2004 2005 ownership interest 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 % % 70 – 100 100 100 100 100 100 100 100 70 100 100 100 100 100 100 100 100 100 100 100 100 100 Effective 31 December 2005 December 31 – –

59 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 60 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 TC Capital SdnBhd TCCapital SecurityServices Ragib-TC Edaran Tan ChongMotor Edaran Tan ChongMotor Edaran Tan ChongMotor Auto Trucks &Components AutoBlendSdnBhd West SdnBhd Anchorage VincusHoldingsSdnBhd Truckquip SdnBhd TCMStampingProducts TCCLSdnBhd SdnBhd TCMotors(Sarawak) TCHartanahSdnBhd TCEuroCarsSdnBhd ResourcesSdnBhd TCCapital Name Subsidiaries 28. N otes TCManufacturingCompany * Motor Image Enterprises Motor Image Fujiyama CarCoolerSdnBhd Edaran Tan ChongMotor Edaran Tan ChongMotor TC Auto Tooling SdnBhd Incorporated inMalaysia:

to the Financial Statements Financial the to (Cont’d) (Utara)SdnBhd (Tengah) SdnBhd SdnBhd (Selatan) (Sarawak) Sdn Bhd Sdn Bhd (Sabah) SdnBhd (Sabah) SdnBhd Sdn Bhd (Sabah) SdnBhd (Sabah) (Cont’d)

Sdn Bhd

Dormant Dormant Investment holding Investment holding construction ofvehicle Distribution ofautomotivespare metal parts Insurance agency equipmentandmachineries heavy Marketing ofcommercialvehicles, Property holding after salesservices Distribution ofmotorvehicles leasing andmoney of way Business onfinancingby ofjigs fabrication Principal activities Dormant Dormant Manufacture andsaleoffueltanks Dormant Dormant Production ofcaralarmsystemand Dormant Dormant Dormant Dormant Dormant Dormant

lending

bodies andprovisionof parts and hire-purchase, andpress

05 2004 2005 ownership interest 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 % %

100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Effective –

Netcashoutflow Cashacquired incash satisfied Consideration Purchaseconsideration Goodwillonacquisition Netassets Longtermliabilities Currentliabilities Theacquisitionofsubsidia Acquisitionof 29. ** * Name Subsidiaries 28. *** * TCExpress andSpare Auto Services ** TCExpress andSpare Auto Services * * ETCM (Labuan) PtyLtd ETCM(Labuan) * PtyLtd TCIE(Labuan) *

Non currentassets assumedintheacquisitionof The fairvaluesofassetsandliabilities During theyear, theGroupacquired virtueofcontrol by Deemed subsidiary Group. the to material not is subsidiary this of statements financial statements.The financial management unaudited using consolidated and KPMG by audited not Company anotherfir auditedby Company Incorporated inCambodia: Incorporated in

Property, plant and equipment (Cambodia) PtyLtd PtyLtd (Labuan)

(Cont’d) S

ubsi Labuan: diar

y ry was ry m ofaccountants

inthecompany accounted for usingtheacquisitionmethodofaccounting. accounted for all the shares in Constant Knight (M) Sdn Bhd for a consideration ofRM7 aconsideration all thesharesinConstantKnight(M)SdnBhdfor Parts Parts

. . spare parts Principal activities Automobile aftersales Investment holding

Dormant Investment holding Constant Knight(

business M) SdnBhd services and services and the cash flow effects areasfollows: and thecashfloweffects N

otes

to the Financial Statements Financial the to ,600,000, cash. by satisfied 05 2004 2005 ownership interest 100 100 100 100 % %

Effective 31 December 2005 December 31 Acquisition RM’000 (7,600) (7,600) 7,600 2,911 4,689 5,569 2005 (877) (3) – – – – –

61 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 62 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 31 December 2005 December 31 Event 31. Significant IncreaseintheGroup’s netassets 30. Longtermliabilities Currentliabilities Property, plantandequipment Tax expense taxation Lossbefore costs Operating Revenue Incomestatement: Acquisitionof 29. N otes shares ofRM0.50each. held astreas share. ordinary per RM1.46 approximately was purchased market. open the from shares issued its of 341,000 purchased Company the end, year the to Subsequent in Note5tothe million. Class market A noteswereissuedtoinvestorsinthedebtcapital RM165.7 of receivables purchase hire of acquisition the for SPV the by used were comprising ( Berhad Commerce Premier by (“Notes”) notes backed On 20 May 2005, the securitisation exercise was completed with the issuance of the first series of RM164 million nominal value medium term asset- theSPV.asset-backed mediumtermnotesby subsidiar its of 21 On Balance sheet: 31December2005: at sets andliabilities subsidiar of acquisition The Effect ofacquisition

to the Financial Statements Financial the to Decrease intheGroup’s theendoffinancialyear netprofitat June 2004, the Group announced its intention to undertake a securitisation exercise, involving the sales of hire purchase receivables in one in receivables purchase hire of sales the involving exercise, securitisation a undertake to intention its announced Group the 2004, June S ubsequent tothe RM E ury shares and carried at cost sharesandcarriedat ury vent ies 160 million Class A notes, A Class million 160 S financial statements ubsi to a special purpose vehicle ( vehicle purpose special a to D uring the diar

Treasury norightstovot shareshave y y B

had the following effect on the Group’s operating results for the year ended 31 December 2005 and on the Group’sthe on and 2005 December 31 Group’sas ended the year on the effect for following results the operating had (Cont’d) alance F inancial

. S heet RM . The numberofoutstandingsharesinissueafterded Y ear D 2 million Class B Notes and Notes B Class million 2 ate “ SPV ” ) and a related programme for the proposed issuance of up to RM600 to up of issuance proposed the for programme related a and ) “ PCB

The repurchase transactions were financed by internal funds. internal by financed were transactions repurchase The e ” , inotherdistribution. dividendsandparticipation ), a deemed subsidiary and SPV established for the Group’s securiti Group’s the for established SPV and subsidiary deemed a ), while RM 2 million Class C notes. C Class million 2 Class B and Class C notes were subscribed by theGroupasdisclosed ClassBandCnotesweresubscribedby

million from the Group for a purchase consideration of RM160.5 of consideration purchase a for Group the from million u cting treasury sharesheldis669, cting treasury

The proceeds from the issuance of the Notes the of issuance the from proceeds The

The average price paid for the shares the for paid price average The

The repurchased shares are shares repurchased The

million nominal value nominal million 631,000 ordinary acquisitio From dateof s 31.12.2005 ation exercise, ation RM’000 (4, (4, (4, RM 7,350 6, 2005 (877) 472 475 475 475 ’000 ( – – 1 n to ) ) ) ) -

50350 KualaLumpur 21 JalanIpohKecil 51200 KualaLumpur 62 –68JalanIpoh 51200 KualaLumpur 582, 3 52000 KualaLumpur Lot 1475JalanSegambut 52000 KualaLumpur Lot 1474JalanSegambut 52000 KualaLumpur Lot 1249JalanSegambut 51200 KualaLumpur Jalan Segambut 327, 3 51200 KualaLumpur JalanSegambut Off Lot 43097MukimofBatu 51200 KualaLumpur Lot 4185JalanSegambut 51200 KualaLumpur Vacant land PT7702 JalanSegambut 51200 KualaLumpur Lot 49393JalanSegambut 51200 KualaLumpur Jalan Segambut Lot 49972MukimofBatu 51200 KualaLumpur Jalan Segambut Lot 49970MukimofBatu 51200 KualaLumpur Jalan Segambut Lot 10230MukimofBatu 51200 KualaLumpur 249 JalanSegambut Location 1 3 / / 2 4 Mls aa ph Office, bay vehiclestorage Miles, JalanIpoh Miles

& showroom Vehicle yard storage Vehicle yard storage plant,Assembly offices, Head officebuilding Showroom &office Vehicle yard storage Vehicle yard storage centre & warehouse Vehicle yard storage Office &factory Vacant land Vacant land Vacant land yard workshop &vehiclestorage Description Pre-delivery inspection Pre-delivery

adAe Ae Tnr/ au Building Value Tenure/ Area Land Area 74,776 s et (qfe) xiyDt (Mmlin (years) (RMmillion) Date Expiry (sqfeet) (sq feet) 111,646 Leasehold 39,305 Freehold 339,448 85,900 147,066 1,8 2,8 Leasehold 25,480 114,189 0,4 5635 Leasehold 596,335 806,749 116,959 133,064 89,659 17,180 14,514 951 239 Freehold 12,389 39,541 2,886 ,7 2,0 Freehold 27,302 Freehold 7,571 28,707 7,533 4,520 ul-p Built-up

53,254 Freehold Freehold 04.07.2065 27.01.2074 20.04.2068 Freehold Freehold 20.04.2068 Freehold Freehold

Leasehold Freehold 14.01.2073 Group Leasehold

Properties as at at as Net Book 21 8 12.14 82 30 28.24 .5 13 7.95 3.10 4.14 0.65 0.55 .6 39 3.26 3.83 5.81 .4 27 3.44 0.02 .9 20 2.49 50 6.16 0.17 .8 26 2.08 31 December 2005 December 31 Age of 63 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 64 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 68100 KualaLumpur Taman Wahyu 35 JalanSibu17 68100 KualaLumpur Taman Wahyu 34 JalanSibu17 55100 KualaLumpur rental Shophousefor Plot 29, Sec52, JalanPudu 55100 KualaLumpur Plot 28, Sec52, JalanPudu 50480 KualaLumpur Bukit Ledang 8 LorongKota4 8C-3-2 SriMurniCondominium 55100 KualaLumpur Jalan BukitBintang LG045 Sungei Wang Plaza 50100 KualaLumpur 2 JalanMunshi Abdullah Kompleks Wilayah Lot UG04–06 50100 KualaLumpur 2 JalanMunshi Abdullah Kompleks Wilayah Lot UG01 50350 KualaLumpur Lot 1388JalanSeri Amar 51200 KualaLumpur 72 JalanIpoh 51200 KualaLumpur 70 JalanIpoh 51200 KualaLumpur 60 JalanIpoh 51200 KualaLumpur 58 JalanIpoh 51200 KualaLumpur 56 JalanIpoh Location Gr as at 31 31 at as oup December 200 December

Properties

5

building for rental building for rental building for rental Office &upperfloorsfor rental Apartment for rental Retail lotfor rental for Showroom &office Office fc,wrhue&idsra 360 ,5 Leasehold 2,850 3,600 Leasehold 2,850 Office, warehouse&industrial 3,600 Office, warehouse&industrial Showroom &office Showroom &office Levelled commercialland Showroom &office Office Office Description

adAe Ae Tnr/ au Building Value Tenure/ Area Land Area s et (qfe) xiyDt (Mmlin (years) (RMmillion) Date Expiry (sqfeet) (sq feet) 22,185 ,9 320 Freehold 3,250 1,999 Freehold 3,080 1,823 ,0 480 Leasehold 4,880 1,600 Freehold 1,938 1,938 ,0 480 Leasehold 4,880 1,600 ,2 487 Freehold 4,827 4,827 Freehold 3,250 Freehold 1,999 3,155 1,853 1,791 ul-p Built-up 0 62 Freehold 602 602 2 61 Freehold 621 621

23.03.2075 23.03.2075 Freehold

Freehold 25.12.2078 25.12.2078 Net Book 7.48 .0 50 1.20 50 1.07 .2 21 0.42 12 0.52 .5 22 0.35 .1 26 0.41 .1 21 0.41 .7 22 1.57 50 1.20 50 1.02 .7 50 1.37 .0 24 0.20 24 0.17 Age of aa nutyMlmJy 75050 Melaka Taman MalimJaya Industry 36 JalanIMJ5 75300 Melaka Jalan Tun Perak 63, 63A&63B Daerah HuluSelangor Vacant land Lot 45BandarSerendah Daerah HuluSelangor PT 10451MukimSerendah Freehold 13,486 40150 Shah Alam, Selangor Sek U1, Temasya 4,508 IndustrialPark 39 JalanPelukisU1/46 41150 Klang, Selangor rental Showroom&officesfor (Berkeley Town Centre) JalanBatu Off Tiga 16 Kawasan 53 &55JalanSatu 41300 Klang, Selangor Jalan Batu Tiga Lama Lot 7834SungaiRasa rental Shoplotfor 46050 PetalingJaya Centre The Highway 41-G, 41-1to41-4, Jln205 47100 Selangor BandarPuchong Pusat 4 JalanBandar Tiga 47100 Selangor BandarPuchong Pusat 2 JalanBandar Tiga Leasehold 47500 SubangJaya 141,820 117 &119JalanSS15/5 416,949 Caves,68100 Batu Selangor Taman Caves SriBatu 142 JalanSBC3 Factory, warehouse&offices Caves,68100 Batu Selangor Lot 3JalanPerusahaanSatu 68100 KualaLumpur Taman Wahyu 36 JalanSibu17 Location

building for rental building for hwom evc pr 1,5 1,5 Leasehold 17,351 rental Shoplot for 18,252 parts centre Showroom, &spare service 2,042,963 development Industrial landfor Vacant land Freehold 71,300 63,389 & sparepartscentre Showroom, salesoffice, workshop Freehold Showroom &office 9,988 3,520 Showroom &office rental Showroom &officesfor rental Shoplot for Leasehold Showroom &salesoffice 2,850 5,632 Office, warehouse&industrial Description

2,178,002 adAe Ae Tnr/ au Building Value Tenure/ Area Land Area s et (qfe) xiyDt (Mmlin (years) (RMmillion) Date Expiry (sqfeet) (sq feet) 60,064 662 662 Leasehold 6,652 6,652 ,8 320 Leasehold 3,240 9,587 Freehold 4,948 1,650 Freehold 10,832 3,612 Freehold 6,094 2,512 ul-p Built-up 3,776

Leasehold 02.07.2052 22.03.2094 Freehold 24.10.2067

18.11.2095

Leasehold 05.09.2074 25.12.2078 24.04.2095 Gr as at at as Net Book oup 14.35 8.29 .7 3 0.17 7.42 .7 23 0.67 .5 15 1.25 .1 11 0.61 9 1.29 9 2.81 7 1.52 7.35 .6 2 2.16 15 6.59 25 0.76 24 0.26 31 December 2005 December 31

Properties Age of 65 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 66 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Location 30000 Ipoh, Perak Jalan SultanIskandarShah Lot 30502 30250 Ipoh, Perak LightIndustrialPark Kinta Jaya Plot 70 30010 Ipoh, Perak Jalan KualaKangsar Lot 31036&31037 Pahang 69000 GentingHighlands 10B Kayangan Apartment 25300 Kuantan, Pahang Vacant land A7348 JalanBerserah Johor Bahru, Johor PTD 166367MukimPlentong 81100 JohorBahru, Johor Perindustrian Kawasan Tebrau II Jalan Angkasa Mas6 Plot 157 Johor Susur 2, 80100JohorBaru 27 Jalan Tun Abd Razak Lot 7348 86000 Kluang, Johor Mokhtar Ismail 14 &15Jalan Tuanku Lot 690&691 Pahat,83000 Batu Johor Jalan Zabedah Bandar Penggaram Lot 1599 Negeri Sembilan 70200 Seremban Seremban LightIndustrialPark Jalan LombongEmas6 Lot 151 Negeri Sembilan 70200 Seremban 260 Jalan Tun DrIsmail Gr as at 31 31 at as oup December 200 December

Properties

5 Description Shoplots for rental Shoplots for Workshop rental for Leasehold 27,800 Office &workshop 40,292 parts centre Showroom, &spare service Freehold 31,738 44,420 rental Apartment for and workshop Showroom, office, warehouse Freehold 12,527 Office &workshop 18,295 rental for Showroom, office&offices Freehold 20,055 53,933 parts centre Leasehold Showroom, &spare service 14,640 33,121 Workshop &sparepartsstore Showroom &office

adAe Ae Tnr/ au Building Value Tenure/ Area Land Area s et (qfe) xiyDt (Mmlin (years) (RMmillion) Date Expiry (sqfeet) (sq feet) 710 823 Leasehold 18,203 87,120 Freehold 11,000 19,376 93,832 ,8 320 Leasehold 3,210 1,680 ,0 686 Freehold 6,806 6,806 Leasehold 2,100 4,887 Freehold 3,250 3,250 Leasehold 3,210 1,680 ul-p Built-up

24.09.2894 02.02.2052 11.02.2052 06.04.2090 01.03.2095 Freehold 25.10.2053 Net Book .6 10 1.56 21 1.89 .6 49 0.36 9.41 .4 33 0.34 9 0.23 25 0.27 .3 20 1.13 22 5.65 12 2.40 0.5 1.40 9 1.16 49 Age of 01000 Kangar, Perlis 267 JalanBaru Pulau Pinang 11900 Sg Tiram Jalan Sultan Azlan Shah 196 BklG Pulau Pinang 13700 SeberangPrai 996 JalanBaru rental Shoplotfor Pulau Pinang 13700 SeberangPraiSelatan 1461 JalanBesar, SgJawi 10150 PulauPinang 127 JalanPetani 10300 PulauPinang 274 Victoria Street 23 Weld Quay/ 35800 SlimRiver, Perak Plot 12&13SlimIndah 31900 Kampar, Perak Taman KamparJaya 41 JalanDurian 31900 Kampar, Perak Taman KamparJaya 39 JalanDurian 36000 Teluk Intan, Perak Jong Jalan Changkat Lot 2224 36000 Teluk Intan, Perak Jong 119 JalanChangkat Showroom, &spare service 34700 Simpang, Taiping, Perak rental Jalan KampongDew 478 –481 Taman KotaJaya 34200 Perak Parit BuntarIndustrialPark Lot 5688 30000 Ipoh, Perak Jalan SultanIskandarShah 204 Location

Shoplots for rental Shoplots for rental Shoplot for rental Shoplot for Vacant land

hwom evc pr 0,3 5,4 Freehold 52,640 Showroom 104,639 Freehold parts centre 27,224 Showroom, &spare service 74,949 parts centre Showroom, workshop&spare Freehold 7,316 10,883 Freehold 53,951 Spare partsstore&workshop 17,967 rental Showroom &officefor Showroom parts centre 174,240 Levelled industriallandfor rental Shoplot for Description

adAe Ae Tnr/ au Building Value Tenure/ Area Land Area s et (qfe) xiyDt (Mmlin (years) (RMmillion) Date Expiry (sqfeet) (sq feet) 26,299 ,2 581 Leasehold 5,821 5,821 Leasehold 4,639 1,600 Leasehold 4,639 3,088 ,5 606 Freehold 6,016 3,850 Leasehold 14,457 9,092 ,8 485 Leasehold 4,855 2,987 Freehold 2,740 2,979 Freehold 2,792 1,740 ul-p Built-up

20.03.2082 23.11.2060 23.11.2060 16.11.2065 Freehold 28.11.2044 Leasehold 07.02.2083 Gr as at at as Net Book oup 32 12 13.23 .9 22 0.19 22 0.13 22 0.15 0.49 .0 19 0.20 25 0.67 .9 21 0.29 26 0.18 30 0.36 0.26 .9 21 3.79 19 0.87 33 6.59 31 December 2005 December 31

Properties Age of 67 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 68 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Location 98000 Miri, Sarawak Piasau IndustrialEstate Jalan PiasauUtara1 Lot 1933, Blok3, MCLD 93450 Kuching, Sarawak Pending IndustrialEstate Jalan Kemajuan Lot 869Section66 93450 Kuching, Sarawak Jalan Pending/JalanSgPriok Lot 9378, 2 93100 Kuching, Sarawak Lot 242Jalan Abell 88300 KotaKinabalu, Sabah Jalan Tuaran, Inanam 5 88300 KotaKinabalu, Sabah Jalan Tuaran, Inanam 5 87015 Labuan, Sabah partscentre Jalan Tun Mustapha Plot 3 TL207528934 15000 KotaBaru, Kelantan 2838 Jalan Temenggong 05150 Alor Setar, Kedah 96J JalanSeberangPutra rental for 05150 Alor Setar, Kedah Seberang JalanPutraMergong 27, 29&30D 01000 Kangar, Perlis 1 Jalan Tunggal Gr as at 31 31 at as

1 3 / / 2 4 oup Mls(L1389) hwom fc,wrso 9,9 2,0 Leasehold 22,000 99,490 Showroom, office, workshop Miles(CL015328695) Office&workshop Miles(CL015333936) December 200 December

Properties 1 / 2 Miles

5

Description

Vacant land parts centre & sparepartscentre workshop &warehouse Showroom, &spare service

hwom fc,wrso, 268 ,9 Leasehold 2,491 Showroom, office&store 32,668 yard store &vehiclestorage Showroom, office, workshop, Leasehold 16,697 14,500 Showroom, &spare service Leasehold Showroom, office, 19,558 24,383 Freehold 6,775 parts centre Showroom, &spare service 7,408 Showroom, office&workshop Workshop

adAe Ae Tnr/ au Building Value Tenure/ Area Land Area s et (qfe) xiyDt (Mmlin (years) (RMmillion) Date Expiry (sqfeet) (sq feet) 2,4 932 Leasehold 9,392 129,240 070 ,7 Leasehold 6,977 20,790 479 112 Freehold 11,142 14,749 68,972 ,9 160 Leasehold 1,650 4,899 Leasehold 4,780 2,126

ul-p Built-up

31.12.2034 09.04.2031 07.02.2083

21.10.2796 Leasehold

31.12.2042 08.12.2052 31.12.2024 31.12.2025 31.08.2026 Net Book .7 12 0.97 .3 8 1.93 .3 2 1.73 2.76 .2 23 2.12 .4 8 0.34 21 0.23 .9 10 0.49 28 0.57 1 0.70 35 0.89 Age of (5) (4) (3) (2) (1) Notes: AXAFinancial, Inc Tan14. KhengLeong Tan13. HoePin 12. Tan11. BengKeong Dr. Tan KangLeong 10. Dr. 9. Tan BanLeong Dato’ Tan 8. BoonPun Dato’ 7. Tan 6. EngSoon Dato’ Tan 5. HengChew AllianceBernsteinL.P. 4. 3. 1. Name SUBSTANTIAL SHAREH (2) (1) Note HajiKamaruddin@ Dato’ Abas binNordin 4. AzmanbinBadrillah 3. Tan EngSoon 2. Dato’ Tan HengChew 1. Name DIRECTORS’ SHAREHOLD Total Treasury shares Sub-Total 33,600,000 andabove 100,001 –33,599,999 10,001 –100,000 1,001 –10,000 100 –999 1 –99 Size ofHoldings ANALYSIS BYSIZEOFHOLDINGS Voting Rights RM336,000,000 – Class ofShares Paid-up Issued andFully Authorised SHARE CAPITAL . NissanMotorC 2.

s: Less than0.01%. virtueofinterestin Deemed interestby Tan SdnBhdand ChongConsolidated Wealthmark HoldingsSdnBhdpursuanttoSection6AoftheCompanies Act, 1965. Less than0.01% virtueofinterestin Deemed interestby AllianceBernstein L.P. pursuanttoSection6AoftheCompanies Act, 1965. viruteofinterestsin Deemed interestby Tan NomineesSdnBhdpursuanttoSection6Aof theCompanies SdnBhdandProgroup ChongConsolidated Act, 1965. virtueofinterestsin Deemed interestby Tan SdnBhdpursuanttoSection6AoftheCompanies ChongConsolidated Act, 1965. virtueofinterestsin Deemed interestby Tan SdnBhdand ChongConsolidated Wealthmark Holdings SdnBhdpursuanttoSection6AoftheCompanies Act, 1965. Tan CheeKeong Tan SdnBhd ChongConsolidated Tan KimHor o Ltd OLDERS INGS – 1 vote per ordinary share 1voteperordinary – sharesofRM0.50each Ordinary – RM500,00 –

(as per Register ofDirectors’Shareholdings) (as perRegister

(as per Register ofSubstantialShareholders) (as perRegister

0,000 o fSae ed N.o hrsHl % No. ofSharesHeld % No. ofSharesHeld No. 304,266,662 37,333,324 13,164,462 34,104,200 13,164, fSae ed N.o hrsHl % No. ofSharesHeld % of SharesHeld o fHles N.o hrsHl % No. ofSharesHeld % No. ofHolders 1,074,834 2,956,000 2,956,000 Direct Direct 260,400 29,000 10,000 10,000 20,427 20,000 99.6475 669,631,000 100.0000 15,773 2 7.3471 5.8579 0.6624 49,372,758 39,364,865 4,451,722 10.7589 57.9915 28.8975 1,697 9,147 4,558 ,992 462 251 1 17 – – – 3

Shareholders’ .93 6,3,6 39.2618 263,839,066 1.5913 0.7418 .10 1,9,8 46.5179 312,599,986 0.0190 45.44 .6 304,266,662 0.16 5.58 .4 0,7,6 45.63 305,578,462 0.44 .4 0,6,6 45.44 304,266,662 0.04 .7 0,7,6 45.63 305,578,462 1.97 5.09 .7 0,7,6 45.63 305,578,462 1.97 .4 0,7,6 45.63 305,578,462 0.44

– – – – 342662 45. 34,104,200 304,266,662 – – – – – (5) (5) (5) (5) 0,6,6 45.44 304,266,662 (2) (2) 0,6,6 45.44 45.44 304,26 304,266,662 45.44 304,266,662 304,266,942 ,6,0 0.3525 100.0000 672,000,000 2,369,000

Indirect Indirect 6, ,0 0.0004 2,603 6 45.44 662

Statistics – – – – – as at at as 31 31 March 2006 March 45.44 5. 09 44 – – – – – (4) ( (2) (2) (2) (2) (2) (3) (2) (1) (1) 2 ( ( ) 1 1 ) ) 69 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 70 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 HSBCNominees(Asing)SdnBhd 20. HSBCNominees(Asing)SdnBhd 19. Nominees(Asing)SdnBhd Citigroup 18. Nominees(Asing)SdnBhd Cartaban 17. Universal Trustee Berhad (Malaysia) 16. PublicNominees (Tempatan) SdnBhd 13. D Key 12. HSBCNominees (Asing)SdnBhd 11. Nominees(Asing)SdnBhd Cartaban 10. Nominees(Asing)SdnBhd Cartaban 9. CimsecNominees(Tempatan) SdnBhd 8. Nominees(Tempatan) Mayban SdnBhd 7. HSBCNominees(Asing)SdnBhd 6. CimsecNominees(Tempatan) SdnBhd 5. EmployeesProvidentFundBoard 4. Nominees(Asing)SdnBhd Cartaban 3. Nominees(Tempatan) Mayban SdnBhd 2. Tan ChongConsolidate 1. Name THIRTY LARGESTSHAREHOLDERS Shareholders’ 5 HSBCNominees(Asing)SdnBhd 15. Nominees(Tempatan) Citigroup SdnBhd 14. as at 31 March 2006 March 31 at as ING InsuranceBerhad(INV-IL Par) Pledged Securities Account for Tan HengChew(E-KLC) BNY Brussels for Guardis InvestmentsGroupLimited BNY Brusselsfor Boronia Corporation BNY Brusselsfor Exempt MerrillLynchAn for (Foreign) PierceFenner&SmithIncorporated StreetLuxembourgFundM59Efor State ACM Bernstein Value Markets Investments-Emerging Value Portfolio CompaniesGrowthFund SBB Emerging HSBC Ltd SPBInvestmentCompany TUB KGAAfor BNY Brusselsfor The State Teachers Emerg) RetirementSystemOfOhio(Sanford (SCBernsteinFD) MarketsPortfolio Emerging SSBT Fund2R26for PublicEmployees RetirementSystem California SSBT FundSW8Nfor CIMB for Tan HengChew(Margin-MM1063) Pledged Securities Account for Tan SdnBhd(014011528927) ChongConsolidated Business CBernstein&CoDelaware Sanford TNTC for Trust Allied InvestmentsLimitedfor Tan SdnBhd ChongConsolidated Exempt DaiwaSecuritiesSMBCCoLtd(Clients) An for Tan SdnBhd(N14011984860) ChongConsolidated evelopment SdnBerhad

Statistics d SdnBhd

o fSae ed % No. ofSharesHeld 202662 34.3871 230,266,662 2,0,0 2.9867 3.6977 20,000,000 5.5752 24,760,800 6.7201 37,333,324 45,000,000 36000 0.5376 0.5510 3,600,000 0.5724 3,690,000 0.6162 3,833,000 0.6310 4,126,500 4,225,200 0.6722 4,501,100 0.9108 0.9442 6,099,000 1.0290 6,322,700 1.1877 6,890,800 1.3440 7,953,100 1.4858 9,000,000 9,949,400 43070 0.6527 4,370,700 ,4,0 0.7079 4,740,000 ,7,0 0.6677 4,471,200 DAILY SHAREPRICES&VOLUMETRADEDONBURSAMALAYSIA SECURITIESBERHAD HSBCNominees (Asing)SdnBhd 30. Nominees(Asing)SdnBhd Cartaban 29. HSBCNominees (Asing)SdnBhd 28. CimsecNominees(Asing)SdnBhd 27. AllianceGroupNominees(Tempatan) SdnBhd 26. HLBNominees(Asing)SdnBhd 25. ChinchooInvestmentS 24. Gan Teng SiewRealtySdnBerhad 23. HSBCNominees(Tempatan) SdnBhd 22. Nominees(Asing)SdnBhd Citigroup 21. Name (Million) Vo 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 lume Tr 0 TOTAL Exempt JPMorganChaseBank,An for National (U.S.A.) Association Investors Bankand Trust Ishares, for Company Inc. Schroder HSBC-FS for Asian GrowthFund Exempt CIMB-GKSecuritiesPteLtd(RetailClients) An for Pheim EmployeesProvidentFund SdnBhdfor Asset Management Pledged Securities LungMaInvestmentsPteLtd(Sin9047-5) Account for HSBC (M) Trustee PrudentialEquityIncomeFund(4801) Bhdfor DFACBNY for MarketsFund Emerging aded (number ofsharestradedfortheday) Vo lume Tr

aded dn Berhad

2005 (c Share Price losing pricefortheday) o fSae ed % No. ofSharesHeld 2006 411456 70.3 471,194,566 Shareholders’ 31100 0.4735 3,171,000 25900 0.3747 0.3984 2,509,000 0.4035 2,667,600 0.4170 2,701,900 0.4405 2,792,480 2,950,000 0.5049 0.5147 3,380,900 0.5205 3,446,500 3,485,700 ,5,0 0.4414 2,956,000 (c BMSB CompositeIndex losing indexfortheday) Share Price 0 0. 0. 0. 0. 1. 1. 1. 1. 1. 2. (RM) as at at as 2 4 6 8 0 2 4 6 8 0 31 31

Statistics March 2006 March Composite 663 Inde 1,00 10 20 30 40 50 60 70 80 90 0 0 0 0 0 0 0 0 0 0 0 x 71 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 72 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 NOTICE IS HEREBY GIVEN that the Thirty-Fourth Annual General Meeting of TAN CHONG MOTOR HOLDINGS BERHAD will be held at the Grand Ballroom, Grand SeasonsHotel,Grand 72JalanPahang,the 53000KualaLumpur, at on Malaysia held Thursday,be 3:00p.m. 2006 at 18May businesses: totransactthefollowing will BERHAD HOLDINGS MOTOR CHONG TANof Meeting General Annual Thirty-Fourth the that GIVEN HEREBY IS NOTICE . To considerandifthoughtfit, resolution: resolutionasanordinary topassthefollowing 7. and approvals and Company the of Association of Articles the (“Act”), 1965 Act, Companies the to always “THAT, subject To considerandifthoughtfit, resolution: resolutionasanordinary topassthefollowing 6. Special Business To KPMGas re-appoint Auditors andtoauthorisetheDirectorsfixtheirremuneration. 5. To re-appoint Ahmad bin Abdullah asDirectorpursuanttoSection129(6)oftheCompanies Act, 1965. Seow Thiam Fatt 4. NgMannCheong Dato’ iii. AzmanbinBadrillah ii. i. 101 Article with accordance in re-election, for themselves offered have and eligible are who Directors following the Tore-elect 3. the of Reports the with together 2005 December 31 ended year the for Statements Financial the consider and receive To 1. Business Ordinary AND THAT an amount not exceeding the Company’s retained profits be allocated by the Company for the Proposed Share Buy- Share Proposed the for Company the by allocated be profits Company’sretained the exceeding not amount AND THATan Listing Company,the the of Association of Articles and Memorandum the (“Act”), 1965 Act,Companies the “THAT,to subject Notice . To thefinancialyearended31December2005. declareafinaldividendof10%lessincometaxfor 2. their absolute discretion deem fit and expedient in the interest of the Company, provided that the aggregate number of shares of number aggregate the that Company,provided the of interest the in expedient and fit deem discretion absolute their may,Directors the whomsoever persons such to and purposes such for and conditions and terms such in upon and time to time Company,the in from each RM0.50 hereby of shares ordinary new are issue and allot to the and Act of 132D Section to pursuant be empowered Directors the applicable), (where authorities regulatory and/or governmental relevant the of requirements PROPOSED GRANTOFAUTHORITYPURSUANTTOSECTION132DTHECOMP of theCompany’s Articles of Association: Directors and Auditors thereto. Back. 31March2006. sharesas at purchased andheldastreasury already shares 2,369,000 less shares 672,000,000 of per Company the ten of capital or share paid-up and shares issued the 64,831,000 of (10%) centum exceed not does Resolution this to pursuant purchased shares of number aggregate the that Company,provided the of interest the in expedient and fit deem may Directors the as conditions and terms such upon BMSB through time to time from Company the of Directors the by determined be may as Buy-Back”) Share (“Proposed Company the in each RM0.50 of shares ordinary of amount such purchase to authorised, hereby is and be Company the any), (if authorities regulatory and/or governmental relevant all of approvals the and (“BMSB”) Berhad Securities Malaysia Bursa of Requirements PROPOSED RENEWAL OFAUTHORITY FORTHECOMPANY TOPURCHASEITSOWNORDINARY SHARES Company.” the of being time the the for of Meeting General Annual next capital the of conclusion share the until force paid-up in be to and continue shall authority THATAND Company issued such the of 10% exceed not does Resolution this to pursuant issued

of Annual General Meeting General of Annual ANIES ACT, 1965 Resolution Resolution Resolution Resolution Resolution Resolution Resolution Resolution

8 7 6 5 4 3 2 1 AND THAT the Directors of the Company be authorised to complete and do all such acts and things (including executing all such all executing (including things and acts such all do and complete AND to authorised be THAT Company the of Directors the of (“AGM”) Meeting General Annual next the of conclusion the until force in be to continue shall approval such THAT AND “THAT,Companies the to subject Act,(“Act”),1965 and Memorandum the of Articles Listing the and Company the of Association To considerandifthoughtfit, resolution: resolutionasanordinary topassthefollowing 8. such all executing (including things and acts such all do and complete AND to authorised be THAT Company the of Directors the aforesaid the before Company the by purchase(s) the of completion the prejudice to as so not but first occurs whichever documents as may be required) as they may consider expedient or necessary to give effect totheShareholders’Mandate.” effect togive consider expedientornecessary may berequired)asthey documents asmay earlier. is whichever meeting, general a in shareholders the by passed resolution a by varied or revoked or Act) the of 143(2) Section to pursuant allowed be may as extension such to extend not shall (but the Act of 143(1) Section to pursuant held be to required is Company the of next AGM the which within Company,the period the of the expiration the or of renewed is Mandate meeting Shareholders’ the of authority general a at passed resolution a by unless lapse, will authority the time which at Company the Mandate”). (the shareholders minority the of detriment the to not are and applicable) (where “Shareholders’ public the to available generally those than Parties Related the to favourable more not are which terms commercial normal on business of course ordinary the in out carried are and operations day-to-day the for necessary are which nature trading or revenue a of transactions recurrent are transactions and/or arrangements such that provided 2006 April 26 dated Shareholders to Circular the of 3.2.1 Paragraph in out set as those including Parties”) (“Related Group the TCMH of shareholder major the with connected persons or shareholder major the of interests the involving Group Ltd Co Motor Nissan with transactions and/or arrangements all into enter to Group”) Requirements of Bursa Securities Malaysia Berhad, be approval and to is given theand hereby Company its subsidiaries (“TCMH WITH TRANSACTIONS PARTY RELATED RECURRENT NISSAN MOTOR COLTD GROUP FOR MANDATE SHAREHOLDERS’ OF RENEWAL PROPOSED authority.” relevantgovernmentaland/orregulatory any orallowedby beagreed may as Buy-Back Share Proposed the to effect give to necessary or expedient consider may they as required) be may as documents relevant other any and/or BMSB by issued authorities(ifany). governmental and/orregulatory guidelines the of provisions the with accordance in event, any in and date expiry theshareholdersinageneralmeeting; resolutionpassedby anordinary revokedorvariedby (iii) oftheperiodwithinwhichnext theexpiration at tobeheld;or law isrequiredby AGM oftheCompany (ii) will authority said the time which at Company the of (“AGM”) Meeting General Annual next the of conclusion the at (i) expire: will and Resolution this of passing the upon immediately effective be will Resolution this by conferred authority the THATAND thetimebeinginforce. otherrelevantauthoritiesfor and/or ordersofBMSBandany requirements guidelines, regulations, rules, the and/or Act the to pursuant orders and/or requirements guidelines, regulations, the Act,rules, by prescribed and permitted be may as manner other such in purchased so shares the with deal to and/or them resell to and/or purchased so shares the cancel to and/or Act) the of 67A Section in defined (as shares treasury as purchased so shares the retain to discretion their at decide to Company the of Directors the to given hereby is and AND be THATauthority lapse unless by an ordinary resolution passed at a general meeting of the Company, the authority is renewed, either renewed, is authority the Company, orsubjecttoconditions; unconditionally the of meeting general a at passed resolution ordinary an by unless lapse Notice

of Annual Gener of Annual al Meeting al Resolution 1 Resolution 9 0 73 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 74 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 N HT uh prvl hl cniu t b i fre ni te ocuin f h nx nul eea Meig “G” of (“AGM”) Meeting General Annual next the of conclusion the until force in be to continue shall approval such THAT AND the and Company the of Association of Articles and Memorandum the (“Act”), 1965 Act, Companies the to “THAT, subject To considerandifthoughtfit, resolution: resolutionasanordinary topassthefollowing 10. such all executing (including things and acts such all do and complete to AND authorised be THAT Company the of Directors the of (“AGM”) Meeting General Annual next the of conclusion the until force in be to continue shall approval such THAT AND the and Company the of Association of Articles and Memorandum the (“Act”), 1965 Act, Companies the to “THAT, subject To considerandifthoughtfit, resolution: resolutionasanordinary topassthefollowing 9. AND THAT the Directors of the Company be authorised to complete and do all such acts and things (including executing all such all executing (including things and acts such all do and complete to AND authorised be THAT Company the of Directors the Notice documents as may be required) as they may consider expedient or necessary to give effect totheShareholders’Mandate.” effect togive consider expedientornecessary may berequired)asthey documents asmay earlier. is whichever meeting, general a in shareholders the by passed resolution a by varied or revoked or Act) the of 143(2) Section to pursuant allowed be may as extension such to extend not shall (but the Act of 143(1) Section to pursuant held be to required is Company the of next AGM the which Company,the within period the of the expiration the or of renewed is Mandate meeting Shareholders’ the of general authority a at passed resolution a by unless lapse, will authority the time which at Company the the minorityshareholders(the “Shareholders’ Mandate”). terms commercial normal of detriment the to not are and public the to on available generally those than Parties Related the to favourable more business not are which of course ordinary the in out carried are and operations day-to-day the for necessary are which nature trading or revenue a of transactions recurrent are transactions and/or arrangements such that provided 2006 April 26 dated Shareholders to Circular the of 3.2.3.1 Paragraph in out set as those including Parties”) (“Related Group TCMH the of shareholders major and/or Directors with connected Group persons Berhad or shareholders Holdings major Directors, TC of Warisan interests with the involving transactions and/or arrangements and all Company into the enter to to given Group”) hereby (“TCMH is subsidiaries and its be approval (“BMSB”), Berhad Securities Malaysia Bursa of Requirements Listing WITH TRANSACTIONS PARTY RELATED RECURRENT WARISAN TCHOLDINGSBERHAD GROUP FOR MANDATE SHAREHOLDERS’ OF RENEWAL PROPOSED totheShareholders’Mandate.” effect togive considerexpedientornecessary may berequired)asthey documents asmay earlier. is whichever meeting, general a in shareholders the by passed resolution a by varied or revoked or Act) the of 143(2) Section to pursuant allowed be may as extension such to extend not shall (but the Act of 143(1) Section to pursuant held be to required is Company the of next AGM the which Company,the within period the of the expiration the or of renewed is Mandate meeting Shareholders’ the of general authority a at passed resolution a by unless lapse, will authority the time which at Company the (the “Shareholders’ Mandate”). shareholders minority the of detriment the to not are and applicable) (where public the to available Related generally those the than Parties to favourable more not are which terms commercial normal on business of course ordinary the in out carried are and operations day-to-day the for necessary are which nature trading or revenue a of transactions recurrent are transactions or and/ including arrangements such that provided Parties”) 2006 26 April dated (“Related Shareholders to Circular the Group of 3.2.2 Paragraph TCMH in out set the as those of shareholder major the with connected persons or shareholder major the of interests the involving s.a.s.Group Renault with transactions and/or arrangements all into enter to Group”) (“TCMH subsidiaries its and Company the to given hereby is and be approval (“BMSB”), Berhad Securities Malaysia Bursa of Requirements Listing WITH TRANSACTIONS PARTY RELATED RECURRENT RENAULT S.A.S. GROUP FOR MANDATE SHAREHOLDERS’ OF RENEWAL PROPOSED

of Annual General Meeting General of Annual Resolution 1 Resolution 1 2 1 AND THAT the Directors of the Company be authorised to complete and do all such acts and things (including executing all such all executing (including things and acts such all do and complete to ANDauthorised be THATCompany the of Directors the of (“AGM”) Meeting General Annual next the of conclusion the until force in be to continue shall approval such THAT AND the and Company the of Association of Articles and Memorandum the (“Act”), 1965 Act, Companies the to “THAT, subject To considerandifthoughtfit, resolution: resolutionasanordinary topassthefollowing 12. such all executing (including things and acts such all do and complete to ANDauthorised be THATCompany the of Directors the of (“AGM”) Meeting General Annual next the of conclusion the until force in be to continue shall approval such THAT AND the and Company the of Association of Articles and Memorandum the (“Act”), 1965 Act, Companies the to “THAT, subject To considerandifthoughtfit, resolution: resolutionasanordinary topassthefollowing 11. documents as may be required) as they may consider expedient or necessary to give effect totheShareholders’Mandate.” effect togive consider expedientornecessary may berequired)asthey documents asmay earlier.is whichever meeting, general a in shareholders the by passed resolution a by varied or revoked or Act) the of 143(2) Section to pursuant allowed be may as extension such to extend not shall (but the Act of 143(1) Section to pursuant held be to required is Company the of next AGM the Company,the which within period the the of expiration the of or renewed is meeting Mandate Shareholders’ the general of authority a at passed resolution a by unless lapse, will authority the time which at Company the the minorityshareholders(the “Shareholders’ Mandate”). of detriment terms the to not are and commercial public the to available normal generally those than Parties Related on the to favourable more business not are which of course ordinary the in out carried are and operations day-to-day the for necessary are which nature trading or revenue a of transactions recurrent are transactions and/or arrangements such that provided 2006 April 26 dated Shareholders to Circular the of 3.2.3.3 Paragraph in out set as those including Parties”) (“Related Group TCMH the of shareholders major and/or Directors with connected persons Group or Limited shareholders major International Directors, of Chong interests Tanthe with involving transactions and/or arrangements all into enter to Group”) (“TCMH subsidiaries its and Company the to given hereby is and be approval (“BMSB”), Berhad Securities Malaysia Bursa of Requirements Listing CHONG INTERNATIONAL LIMITEDGROUP TAN WITH TRANSACTIONS PARTYRELATED RECURRENT MANDATEFOR SHAREHOLDERS’ OF RENEWAL PROPOSED totheShareholders’Mandate.” effect togive considerexpedientornecessary may berequired)asthey documents asmay earlier.is whichever meeting, general a in shareholders the by passed resolution a by varied or revoked or Act) the of 143(2) Section to pursuant allowed be may as extension such to extend not shall (but the Act of 143(1) Section to pursuant held be to required is Company the of next AGM the Company,the which within period the the of expiration the of or renewed is meeting Mandate Shareholders’ the general of authority a at passed resolution a by unless lapse, will authority the time which at Company the to thedetrimentofminorityshareholders(the “Shareholders’ Mandate”). terms commercial not are and applicable) (where normal public the to available generally those on than Parties Related the to favourable business more not are which of course ordinary the in out carried are and operations day-to-day the for necessary are which nature trading or revenue a of transactions recurrent are transactions and/or arrangements such that provided 2006 April 26 dated Shareholders to Circular the of 3.2.3.2 Paragraph in out set as those including Parties”) (“Related Group TCMH the of shareholders major and/or Directors with connected persons or shareholders major Directors, of interests the involving Group Berhad Holdings Automotive APM with transactions and/or arrangements all into enter to Group”) (“TCMH subsidiaries its and Company the to given hereby is and be approval (“BMSB”), Berhad Securities Malaysia Bursa of Requirements Listing AUTOMOTIVE HOLDINGSBERHADGROUP APM WITH RELATEDPARTYTRANSACTIONS RECURRENT MANDATEFOR SHAREHOLDERS’ OF RENEWAL PROPOSED Notice

of Annual General Meeting General of Annual Resolution Resolution 14 13 75 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 76 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 Notice 26 April 2006 Kuala Lumpur Secretary Company YAP BEELEE By orderoftheBoard To otherbusinessof transactany 14. such all executing (including things and acts such all do and complete to AND authorised be THAT Company the of Directors the the of (“AGM”) Meeting General Annual next the of conclusion the until force in be to continue shall approval such THAT AND the and Company the of Association of Articles and Memorandum the (“Act”), 1965 Act, Companies the to “THAT, subject To consider 13. related of interest the involving transactions recurrent into enter to subsidiaries its and/or Company the enable will passed, if 15, and 14 13,12,11, 10, resolutions proposed The ProposedRenewalofShareholders’MandateforRecurrent RelatedParty Transactions 3. an representing Company the in each RM0.50 of shares ordinary 64,831,000 to up purchase to Company the of Directors the empower will passed, if 9, Resolution proposed The ProposedShare Buy-Back 2. involve proposals diversification or expansion the of any Company.If the of potential earnings and base operating the broaden to opportunities consider to continues Company The ProposedGrantofAuthority PursuanttoSection132DoftheCompaniesAct, 1965 1. EXPLANATORY NOTES ONSPECIAL BUSINESS: time the before hours forty-eight than less Lumpur,not Malaysia,Kuala 51200 Ipoh, Jalan 68 - Company,62 the of Office Registered the at deposited be must proxy of form The 4. account.securities such of credit the to standing Company the in holds nominee authorised the account securities each of respect in proxy one appoint may nominee authorised An 3. Inthecaseofacorporation, authorised. duly mustbeexecuted undersealorthehandofanofficer orattorney representative acorporate ofproxyappointing theform Company,where and,the of member a be not need proxy him.A 2. for vote and attend to two) than more not (but proxies or proxy a appoint to entitled is vote to entitled member A 1. NOTES: Further information on resolutions 10, 11, 12, 13, 14 and 15 are set out in the Circular to Shareholdersand ontermsnottothedetrimentofminority shareholdersoftheCompan dated 26 April 2006, despatched together with the Company’sbusiness of course ordinary Group’sthe the in 2005 out for carried being operations,transactions necessary the day-to-day and to subject nature trading or parties,revenue a of are which Annual Report. 26 ontheProposed ShareBuy-BackissetoutintheCirculartoShareholdersdated Further information April 2006, togetherwiththeCompany’s despatched 2005 Annual Report. profits oftheCompany. This authority, a generalmeeting, unlessrevokedorvariedat theconclusionofnext will expireat Annual GeneralMeetingoftheCompany. retained the exceed not shall which allocated funds the utilizing by Buy-Back”) Share (“Proposed Company the of capital share paid-up and issued the of 10% exceeding not amount being, for such purpose. This authority, unless revoked or varied at a general meeting, shallempowered, continue to as be proposed in force in untilResolution the conclusion 8, to issue of the shares next in theAnnual Company General up toCompanybeconsidered an thethus MeetingDirectorsamountappropriate shares, theofis that ofnot it issueof approve such exceedinggeneralthe meeting conveningto involved Company. costsain and indelay total any avoid 10%to order of theIn issued and paid-up share capital of the Company for the time oftheCompany. belessthan10%oftheissuedandpaid-upsharecapital number involvedmay the though even shares new of issue the approve to meeting general a convene to Company,have circumstances,the would present of under Directors shares, the new of issue the the whom themeeting. for appointed for owner beneficial the of name the and number account securities the specify shall which proxy of instrument authorised nomineeisacting. separate a by be shall proxy of appointment Each there aretwoproxies, eachproxymustbestated. thenumberofsharestoberepresentedby documents as may be required) as they may consider expedient or necessary to give effect totheShareholders’Mandate.” effect togive considerexpedientornecessary may berequired)asthey documents asmay earlier.is whichever meeting, general a in shareholders the by passed resolution a by varied or revoked or Act) the of 143(2) Section to pursuant allowed be may as extension such to extend not shall (but the Act of 143(1) Section to pursuant held be to required is Company the of next AGM the which within period the of expiration the or renewed is Mandate Shareholders’ the of Company at which time the authority will lapse, unless by a resolution passed at a general meeting of the Company, the authority shareholders (the “Shareholders’ Mandate”). minority the of detriment the to not are and public the to not available generally are those than which Parties Related terms for the commercial to favourable normal necessary more on business are of which course ordinary nature the in trading out carried or are and revenue operations that day-to-day a provided the of 2006 transactions April recurrent 26 are dated Shareholders transactions to and/or Circular arrangements the such of 3.2.4 Paragraph in out set as those including Parties”) (“Related Group TCMH the of shareholders major and/or Directors with connected persons or shareholders major Directors, of interests the involving Bhd Sdn Dunia with Auto transactions and/or arrangements all into enter to Group”) its (“TCMH subsidiaries and Company the to given hereby is and be approval (“BMSB”), Berhad Securities Malaysia Bursa of Requirements Listing DUNIA SDNBHD MANDATERELATEDSHAREHOLDERS’ RECURRENT OF RENEWALPARTYAUTO FOR PROPOSED WITH TRANSACTIONS

of Annual General Meeting General of Annual andifthoughtfit, resolution: resolutionasanordinary topassthefollowing the Company of which due notice shall have beenreceived. ofwhichduenoticeshallhave the Company y. Resolution 1 5 lc : GrandBallroom, GrandSeasonsHotel, 72JalanPahang, 53000KualaLumpur, Malaysia : Place 3:00p.m. : Thursday, 2006 18May Time : Date Date, Time andPlaceoftheThirty-FourthAnnualGeneralMeeting Report. Directors the the Annual of of 11 to 10 attendance pages Directors”on of the Board the of of entitled “Profiles section the details in out the set are re-appointment and and re-election 2005 for standing are December who 31 ended year financial the during held meetings board (6) six of total a were There Details ofAttendancetheDirectorsatBoardMeetings the Company. in the shares any 2006, have March not the in Report.31 bin did of Annual at Ahmad Abdullah 10 As Directors”page of on out Board the entitled of section “Profiles set are particulars His 1965.Act, Companies the of 129(6) Section to pursuant director as re-appointment for standing is Abdullah bin Ahmad Director StandingforRe-AppointmentattheThirty-FourthAnnualGeneralMeeting sharesintheCompany. any not have did Fatt Thiam Seow and Cheong Mann Ng Dato’ whereas Company the in shares 20,000 in interest direct a had Badrillah bin 2006,Azman March 31 at the of Report.11 Annual to Directors”10 of pages Board on entitled the As section of the “Profiles in out set are Seow Directors Fatt.these Thiam of Details and Cheong Mann Ng Company’sBadrillah, Dato’ the bin are of Azman Association 101 Articles to Article pursuant re-election for standing Directors The Directors StandingforRe-electionattheThirty-FourthAnnualGeneralMeeting Statement

Accompanying Notice of Annual General General of Annual Notice Accompanying Meeting 77 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 78 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 26 April 2006 Kuala Lumpur Secretary Company YAP BEELEE By orderoftheBoard SecuritiesBerhad. SecuritiesBerhadonacumentitlementbasisinaccordancewiththerulesofBursaMalaysia sharesboughtonBursaMalaysia (3) deposit; mandatory from exempted shares of respect in 2006 May 23 p.m.on 12:30 before depositor’saccount the securities into deposited shares (2) sharestransferredintothedepositor’s 4:00p.m. securitiesaccountbefore transfers; 2006inrespectofordinary on25May (1) inrespectof: theentitlementtodividendonly A depositorshallqualifyfor 2006.on 26May 2006. shallbe25May The entitlementdate a final dividend of 10% less income tax will be paid on 23 June 2006 to shareholders whose names appear in the Register of Members on book closure date NOTICE IS HEREBY GIVEN THAT subject to the approval of the shareholders at the Thirty-Fourth Annual General Meeting of Tan Chong Motor Holdings Berhad, Notice and

of Dividend Entitlement and and Entitlement Dividend of Book Closure Book IC No./ID No./Company No. No./Company No./ID IC Date: Numb discretion.) his at voting from abstain or vote will proxy the so, do not do you If cast. be to vote your wish you how provided spaces the in “X”an with indicate (Please adjournmentthereof,any below: asindicated at and p.m., 3:00 at 2006 Lumpur, May Thursday,Kuala on Malaysia,18 53000 Pahang, Jalan 72,No.Hotel, Seasons Grand Ballroom, Grand the at held be to Company the of Meeting the General Thirty-Fourth at Annual behalf my/our on me/us for vote to proxy/proxies my/our as meeting the of Chairman the No. IC fa or letters) capital in NRIC, per as proxy of (name being amember(s)of TAN CHONGMOTORHOLDINGSBERHAD, hereby of inMalaysia) (12969-P) (Incorporated TAN CHONGMOTORHOLDINGSBERHAD I/We ProposedRenewalof Resolution 15 Party RecurrentRelated for ProposedRenewalofShareholders’Mandate Transactions Resolution 14 Party RecurrentRelated for ProposedRenewalofShareholders’Mandate Transactions Resolution 13 Party RecurrentRelated for ProposedRenewalofShareholders’ Mandate Transactions Resolution 12 Party RecurrentRelated for ProposedRenewalofShareholders’ Mandate Transactions Resolution 11 ProposedRenewalofShare Resolution 10 ProposedRenewalof shares topurchaseitsownordinary theCompany Authority for Resolution 9 ProposedGrantof Authority pursuanttoSection132DoftheCompanies Act, 1965 Resolution 8 ofKPMGas Re-appointment Auditors Resolution 7 of Re-appointment Ahmad bin Abdullah asDirector Resolution 6 Re-electionofSeow asDirector Thiam Fatt Resolution 5 NgMannCheong asDirector Re-electionofDato’ Resolution 4 Re-electionof Azman binBadrillahasDirector Resolution 3 FinalDividend Resolution 2 andReportsofthe Directorsand FinancialStatements Audit Resolution 1 ______iling him/her him/her iling ______

er ofsharesheld: ______with Aut with Tan LimitedGroup ChongInternational with APM Automotive HoldingsBerhadGroup with Warisa with Renaults.a.s. Group with NissanMotorCoLtdGroup

Signature/Common Seal Signature/Common o DuniaSdnBhd ______n TC HoldingsBerhadGroup Shareholders’ Mandate fo Shareholders’ Mandate holders’ Mandate for Recurrent Related Party RecurrentRelated for holders’ Mandate Transactions IC No. ______(new)______(old) ______(new)______No. IC ______(name ofshareholderasperNRIC, letters) incapital ______r Recurrent Related Party r RecurrentRelated Transactions ______

appoint ______appoint (new)

______ors Total Proxy 2 Proxy 1 be to shareholdings of theproxies: represented by percentage proxies, two of appointment For (new) (new) ______

(name of proxy as per NRIC, in capital letters) capital NRIC,in per as proxy of (name CDS accountno. ofauthorisednominee ______o fsae Percentage No. ofshares Form F or

______

(old) or failin or (old) of of Against Proxy ( 100% f ull g him/her g % % add ress) (old)

79 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 80 Tan Chong Motor Holdings Berhad ( 1 2 9 6 9 - P ) Annual Report 2005 than forty-eighthoursbeforethetimeappointedformeeting. Lumpur,Kuala less Ipoh,51200 Malaysia,not Jalan 68 Company,- the 62 of Office Registered the at deposited be must Proxy of Form The (3) (2) (1) Notes: In the case of a corporation, the form of proxy appointing a corporate representative must be executed under seal or under the hand of an officer or officer an of hand the under or seal under executed be must representative corporate a appointing proxy of form the corporation, a of case the In of member a be not him.need proxy for A vote and attend to two) than more not (but proxies or proxy a appoint to entitled is vote to entitled member A credit the to standing Company the in holds nominee authorised the account securities each of respect in proxy one appoint may nominee authorised An attorney duly authorised. duly attorney the Company, and, wheretherearetwoproxies, eachproxymustbestated. thenumberofsharestoberepresentedby whomtheauthorisednomineeisacting.the nameofbeneficialownerfor and number account securities the specify shall which proxy of instrument separate a by be shall proxy of account. appointment securities Each such of TAN CHONGMOTOR HOLDINGSBERHAD The Company Secretary The Company 51200 KualaLumpur 62-68 JalanIpoh fold here fold fold here fold Malaysia Stamp here Affix