Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) Statutory financial statements for the year ended 30 June 2000 Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) Corporate information Directors Y.A.M.Tengku Sulaiman Shah Ibni Sultan Salahuddin Abdul Aziz Shah Chairman Tan Soo Hai Executive Director Dato’ Haji Abdul Hanif bin Abdullah Ooi Swee Aik Abd. Malek bin Hamzah Audit Committee Y.A.M. Tengku Sulaiman Shah Ibni Sultan Salahuddin Abdul Aziz Shah Chairman (Independent Director) Ooi Swee Aik Member (Independent Director) Tan Soo Hai Member (Executive Director) Secretaries Leong Oi Wah (MAICSA 7023802) Hooi Choy Khuan (LS 04870) Cheng Ghee Cheng (LS 04598) Registered Office No. 21 & 23 Jalan Hussein (Ground Floor) 30250 Ipoh, Perak Darul Ridzuan, Malaysia Telephone No.: 05-2415633 Registrars Signet Share Registration Services Sdn. Bhd. No. 21 & 23 Jalan Hussein (Ground Floor) 30250 Ipoh, Perak Darul Ridzuan, Malaysia Head office 3rd Floor, Selayang Mall Jalan SU 9, Taman Selayang Utama 68100 Batu Caves, Selangor Darul Ehsan, Malaysia Factory office Site 28 & 30, Tasek Drive Tasek Industrial Estate 31400 Ipoh, Perak Darul Ridzuan, Malaysia Auditors PricewaterhouseCoopers 1st Floor Standard Chartered Bank Chambers 21-27 Jalan Dato’ Maharaja Lela 30710 Ipoh, Perak Darul Ridzuan, Malaysia Principal bankers Phileo Allied Bank (Malaysia) Berhad Bank Pembangunan & Infrastruktur Malaysia Berhad Southern Bank Berhad Arab Malaysian Bank Berhad Bank Kerajasama Rakyat Malaysia Berhad Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) Statutory financial statements for the year ended 30 June 2000 Index Pages Directors’ report 1 - 4 Statement by Directors 5 Statutory declaration 5 Report of the auditors 6 - 7 Financial statements Income statements 8 Balance sheets 9 Statements of changes in equity 10 Cash flow statements 11 Notes to the financial statements 12 - 29 Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) Directors’ report for the financial year ended 30 June 2000 The Directors submit their annual report to the members together with the audited financial statements of the Group and of the Company for the year ended 30 June 2000. Principal activities The principal activities of the Company are those of property investment and the manufacturing of plywood. The principal activities of the subsidiary companies during the financial year are set out in note 11 to the financial statements. There were no significant changes in the nature of these activities other than the temporary cessation of a subsidiary company’s plywood manufacturing operations. Financial results Group Company RM RM Loss for the financial year after taxation 37,347,650 17,178,602 Minority interest (8,698,195) - Net loss attributable to shareholders 28,649,455 17,178,602 Dividends No dividends have been paid, declared or proposed since 30 June 1999. Reserves and provisions There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements. 1 Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) Directors The Directors in office since the date of the last report are: Y.A.M. Tengku Sulaiman Shah Ibni Sultan Salahuddin Abdul Aziz Shah Dato’ Haji Abdul Hanif bin Abdullah Ooi Swee Aik Tan Soo Hai Abd. Malek bin Hamzah appointed 3 May 2000 Ng Yeong Lee @ Wang Yong Lee resigned 3 January 2000 Lee Aik Chong resigned 2 May 2000 Nazam bin Mohd. Nazir resigned 25 July 2000 Directors’ interests in shares According to the Register of Directors’ Shareholdings, particulars of interests of Directors who held office at the end of the financial year in the shares in the Company were as follows: Number of ordinary shares of RM1 each Balance at 1.7.1999/ date of Balance at In the Company appointment Bought Sold 30.6.2000 Direct interest Tan Soo Hai 100,000 - - 100,000 Abd. Malek bin Hamzah 12,000 - - 12,000 Indirect interest Dato’ Haji Abdul Hanif bin Abdullah 30,079,057 - 27,156,000 2,923,057 Tan Soo Hai 108,000 - 108,000 - Nazam bin Mohd. Nazir 30,079,057 - 27,156,000 2,923,057 None of the other Directors in office at the end of the financial year held any interests in the shares in the Company or its related corporations during the financial year. Directors’ benefits During and at the end of the financial year, no arrangements subsisted to which the Company is a party, being arrangements with the object or objects of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate. Since the end of the previous financial year, no Director has received or become entitled to receive a benefit other than the fees and other emoluments shown in the notes to the accounts by reason of a contract made by the Company or a related corporation with the Director or with a firm of which he is a member, or with a company in which he has a substantial financial interest. 2 Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) Directors’ rotation In accordance with the Company’s Articles of Association, Y.A.M. Tengku Sulaiman Shah Ibni Sultan Salahuddin Abdul Aziz Shah and Dato’ Haji Abdul Hanif bin Abdullah retire by rotation from the Board at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election. Directors’ retirement In accordance with the Company’s Articles of Association, Abd. Malek bin Hamzah, who was appointed during the year retires from the Board at the forthcoming Annual General Meeting and, being eligible, offers himself for re-election. Statutory information on the financial statements Before the income statements and balance sheets of the Group and the Company were made out, the Directors took reasonable steps: (a) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate provision had been made for doubtful debts; and (b) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business their values as shown in the accounting records of the Group and the Company had been written down to an amount which they might be expected so to realise. At the date of this report, the Directors are not aware of any circumstances: (a) which would render the amounts written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Group and the Company inadequate to any material extent; or (b) which would render the values attributed to current assets in the financial statements of the Group and the Company misleading; or (c) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and the Company misleading or inappropriate. No contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and the Company to meet their obligations when they fall due. 3 Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) At the date of this report, there does not exist: (a) any charge on the assets of the Group or the Company which has arisen since the end of the financial year which secures the liability of any other person; or (b) any contingent liability of the Group or the Company which has arisen since the end of the financial year. At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements which would render any amount stated in the financial statements misleading. In the opinion of the Directors: (a) the results of the Group’s and the Company’s operations during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature except for the write down of plant and machinery and the provision for doubtful debts as disclosed in the income statements; and (b) there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the Group and the Company for the year in which this report is made. Auditors The auditors, PricewaterhouseCoopers, have expressed their willingness to continue in office. In accordance with a resolution of the Board of Directors dated 24 October 2000 Y.A.M. Tengku Sulaiman Shah Ibni Sultan Salahuddin Abdul Aziz Shah Tan Soo Hai Director Director 4 Seal Incorporated Berhad (Company no: 4887 M) (Incorporated in Malaysia) Statement by Directors Pursuant to Section 169 (15) of the Companies Act, 1965 We, Y.A.M. Tengku Sulaiman Shah Ibni Sultan Salahuddin Abdul Aziz Shah and Tan Soo Hai of Seal Incorporated Berhad, state that, in the opinion of the Directors, the financial statements set out on pages 8 to 29 are drawn up so as to give a true and fair view of the state of affairs of the Group and the Company as at 30 June 2000 and of the results and cash flows of the Group and the Company for the financial year ended on that date in accordance with the applicable approved accounting standards in Malaysia and the provisions of the Companies Act, 1965.