Corporate Review Inside - listed company
Transcript of Corporate Review Inside - listed company
Kuala Lumpur Stock Exchange
Br idg ing
Opportunities
With Malaysia undergoing a transformation that will see it emerging from a developing nation to adeveloped one, the Federal Territory of Putrajaya, the nation’s new administrative centre, has become atrue representation of progress and change.
There are symbolic parallels between the dynamic development of Putrajaya and the transformations taking place atthe Kuala Lumpur Stock Exchange as it moves towards becoming an efficient and effective Malaysian exchange.These changes are intended to enable the Exchange to be more competitive, to contribute positively towards thenation’s economic growth and to propel the capital market to greater heights.
Given the parallels, the Annual Report 2002 utilises images of Putrajaya to depict its stunning architecture and itscore characteristics that are shared by the Exchange – a sense of achievement, dynamism, sophistication ofinfrastructure, the embracing of information technology and progression.
On the Annual Report 2002 cover and these pages, is the Seri Saujana Bridge. The 300m long Seri Saujana Bridgeis strategically located at the main entrance to the core island of Putrajaya. It features a sleek, ultra-modern designthat utilises a transparent and futuristic style to achieve a structure that simultaneously depicts elegance andstrength.
The bridge also symbolises the progress of Putrajaya and KLSE from one stage to another as they seek newopportunities for the further advancement of the nation.
Annual Repor t 2002
Co
nte
nts 2 Corporate Information
8 Committee Members
10 Group Board Members
18 Group Management Team
26 KLSE Sub-Committees
30 Calendar of Events
36 Membership Report
50 KLSE Members
57 Financial Statements
97 Notice of AGM
Form of Proxy
Seri Saujana Bridge
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Kuala Lumpur Stock Exchange
KUALA LUMPUR STOCKEXCHANGE (KLSE ) (Company No. 30632-P)
Committee MembersDato' Mohammed Azlan Hashim
(Executive Chairman)
Datuk Mohaiyani Shamsudin (Deputy Chairman)
Tan Kim Leong, JP
Abdul Kadir Hj Md Kassim
Abdul Jabbar Abdul Majid
Peter Leong Tuck Leng
Yusli Mohamed Yusoff
Datin Mariam Yusof
Abdul Rauf Ramli
PresidentDato’ Mohd Salleh Abdul Majid
Deputy President,Exchange OperationsMd Nor Ahmad
Deputy President,Strategy & DevelopmentAbdul Hamid Sh Mohamed
Company SecretaryAzman Shah Md Yaman
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersBumiputra-Commerce Bank Berhad
HSBC Bank Malaysia Berhad
Malayan Banking Berhad
Southern Bank Berhad
Registered OfficeKuala Lumpur Stock Exchange
14th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263684
MALAYSIA DERIVATIVESEXCHANGE BERHAD(MDEX)(Company No. 261937-H)
Board of DirectorsAbdul Jabbar Abdul Majid
(Executive Chairman)
Dato’ Mohammed Azlan Hashim
Dato’ Seri Hwang Sing Lue
Tunku Dato' Seri Nadzaruddin Tuanku Ja'afar
Alvin Kwan Wing Yew
Md Nor Ahmad
Mohd Zain Omar
Wong Fook Wah
Yusli Mohamed Yusoff
Chief Operating OfficerDr Zaha Rina Zahari
General ManagerRaghbir Singh Bhart
Company SecretaryManoj Devadasan
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersBumiputra-Commerce Bank Berhad
Malayan Banking Berhad
RHB Bank Berhad
Hong Leong Bank Berhad
Registered OfficeMalaysia DerivativesExchange Berhad
10th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20708199
Fax: 03-20702376
LABUANINTERNATIONALFINANCIAL EXCHANGEINC (LFX) (Company No. LL02032)
Board of DirectorsDato’ Mohammed Azlan Hashim
(Chairman)
Dato’ Ahmad Johan Raslan
Datuk Dr Awang Adek Hussin
Abdul Kadir Hj Md Kassim
Peter Leong Tuck Leng
Datin Mariam Yusof
Md Nor Ahmad
Resident SecretaryAzizan Mohd Som
Joint SecretaryAzman Shah Md Yaman
Exchange CommitteeMembersDatuk Dr Awang Adek Hussin
(Chairman)
Abdul Kadir Hj Md. Kassim
Abdul Jabbar Abdul Majid
Mohd Nasir Ali
Prof Madya Dr Mohd Daud Bakar
Md Nor Ahmad
Vaseehar Hassan Abdul Razack
Raymond Wong
Jeremy C Camps
Louise Paul
General ManagerS Loganathan
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersMalayan Banking Berhad
Maybank International (L) Ltd
Citibank Malaysia (L) Ltd
Citibank Berhad
Corporate I n f o r m a t i o n
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Annual Repor t 2002
Registered OfficeLabuan International Financial Exchange Inc
Unit Level 7(B), Main Office Tower
Financial Park Labuan, Jalan Merdeka
87000 Labuan Federal Territory
Malaysia
Tel: 087-451359
Fax: 087-451379
SECURITIES CLEARINGAUTOMATED NETWORKSERVICES SDN BHD(SCANS) (Company No. 109716-D)
Board of DirectorsDato' Mohammed Azlan Hashim
(Executive Chairman)
Datuk Mohaiyani Shamsudin
Tan Kim Leong, JP
Abdul Kadir Hj Md Kassim
Dato’ Hj Megat Najmuddin KhasDato’ Seri (Dr) Hj Megat Khas
Abdul Jabbar Abdul Majid
Peter Leong Tuck Leng
Yusli Mohamed Yusoff
Datin Mariam Yusof
Abdul Rauf Ramli
Dato’ Mohd Salleh Abdul Majid
General ManagerMohd Ridzal Mohd Sheriff
Company SecretariesAzman Shah Md Yaman
Yong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersMalayan Banking Berhad
Alliance Bank Berhad
Southern Bank Berhad
Standard Chartered Bank (M) Berhad
Registered OfficeSecurities Clearing AutomatedNetwork Services Sdn Bhd
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20268099
Fax: 03-20263715
MALAYSIANDERIVATIVES CLEARINGHOUSE BHD (MDCH)(Company No. 358677-D)
Board of DirectorsMd Nor Ahmad
(Chairman)
Mohd Ridzal Mohd Sheriff
Alvin Kwan Wing Yew
Ahmad Hizzad Baharuddin
Laren Tan Kian Seng
Ng Chin Leng
Khairussaleh Ramli
Noripah Kamso
Raghbir Singh Bhart
Steven Lai Choon Lim
Dr Zaha Rina Zahari
Chief Executive OfficerMohd Ridzal Mohd Sheriff
Company SecretariesAzman Shah Md Yaman
Yong Hazadurah Md Hashim
AuditorsPricewaterhouseCoopers
Tax ConsultantsMessrs Ernst & Young
BankersMalayan Banking Berhad
Citibank Berhad
RHB Bank Berhad
ABN Amro Berhad
HSBC Bank Malaysia Berhad
Registered OfficeMalaysian Derivatives ClearingHouse Bhd
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263584
MALAYSIAN CENTRALDEPOSITORY SDN BHD (MCD) (Company No. 165570-W)
Board of DirectorsDato’ Mohammed Azlan Hashim
(Executive Chairman)
Tan Kim Leong, JP
Abdul Rauf Ramli
Chan Guan Seng
Datuk Amirsham A Aziz
Ahmad Subri Abdullah
Datuk Azlan Mohd Zainol
General ManagerFathi Ridzuan Ahmad Fauzi
Company SecretariesAzman Shah Md Yaman
Yong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersBumiputra-Commerce Bank Berhad
Malayan Banking Berhad
Alliance Bank Berhad
Registered OfficeMalaysian Central Depository Sdn Bhd
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20262099
Fax: 03-20263719
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Kuala Lumpur Stock Exchange
KLSE TECHNOLOGY SDN BHD (KLSE TECH)(Company No. 213411-K)
Formerly known as KLOFFE Capital Sdn Bhd
Board of DirectorsDato' Mohammed Azlan Hashim
(Chairman)
Abdul Jabbar Abdul Majid
Dato' Seri Hwang Sing Lue
Yusli Mohamed Yusoff
Abdul Hamid Sh Mohamed
Md Nor Ahmad
Ungku A Razak Ungku A Rahman
Ravindran Navaratnam
Executive DirectorUngku A Razak Ungku A Rahman
Company SecretaryYong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersMalayan Banking Berhad
Bank Utama (M) Berhad
Registered OfficeKLSE Technology Sdn Bhd
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263716
KLSE INFORMATIONSERVICES SDN BHD(KLSE IS) (Company No.152961-H)
Formerly known as KLSE-BernamaReal-Time Information Services Sdn Bhd
Board of DirectorsDato’ Mohammed Azlan Hashim
(Chairman)
Abdul Jabbar Abdul Majid
Abdul Hamid Sh Mohamed
Md Nor Ahmad
General ManagerKhamarul Baharain Sulaiman
Company SecretaryYong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersMalayan Banking Berhad
Registered OfficeKLSE Information Services Sdn Bhd
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-27324273
MALAYSIAN SHAREREGISTRATIONSERVICES SDN BHD(MSRS) (Company No. 378993-D)
Board of DirectorsDato’ Mohammed Azlan Hashim
(Chairman)
Dato’ Hj Megat Najmuddin Khas Dato’ Seri (Dr) Hj Megat Khas
Ungku A Razak Ungku A Rahman
Tan Sri Zulkifli Mahmood
Mohamad Shuib Abdul Ghani
General ManagerAbdul Nasir Ahmad Daud
Company SecretaryYong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersMalayan Banking Berhad
Registered OfficeMalaysian Share Registration Services Sdn Bhd
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263736
Corporate I n f o r m a t i o n
KLSE PROPERTYMANAGEMENTSDN BHD (KPM)(Company No. 147792-H)
Board of DirectorsDato’ Mohammed Azlan Hashim
(Chairman)
Tan Kim Leong, JP
Yusli Mohamed Yusoff
Md Nor Ahmad
Abdul Razak Mohd Amin
General ManagerAbdul Razak Mohd Amin
Company SecretaryYong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersMalayan Banking Berhad
Registered OfficeKLSE Property Management Sdn Bhd
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-27326112
YAYASAN BSKL (YBSKL) (Company No. 464552-M)
Board of GovernorsDato’ Mohammed Azlan Hashim
(Chairman)
Abdul Kadir Hj Md Kassim
Datuk Hj Abdul Karim Haron
Dato’ N Sadasivan A/L N N Pillay
Dato’ Che Mohd Annuar Che Mohd Senawi
Tan Sri Dato’ Dr Abdullah Sanusi Hj Ahmad
Dato’ Mohd Salleh Abdul Majid
Othman Abdullah
Company SecretaryYong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
BankersMalayan Banking Berhad
Registered OfficeYayasan BSKL
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263700
RESEARCH INSTITUTEOF INVESTMENTANALYSTS MALAYSIA(RIIAM) (Company No. 139281-V)
Board of GovernorsDato’ Mohammed Azlan Hashim
(Chairman)
Datuk Mohaiyani Shamsudin (Deputy Chairman)
Tan Kim Leong, JP
Datin Mariam Yusof
Tan Sri Dato' Dr Abdullah SanusiHj Ahmad
Tan Sri Dato’ Dr Syed JalaluddinSyed Salim
Abdul Hamid Sh Mohamed
DirectorAbdullah Naib
Company SecretaryYong Hazadurah Md Hashim
AuditorsMessrs Ernst & Young
Tax ConsultantsMessrs Ernst & Young
BankersBumiputra-Commerce Bank Berhad
Registered OfficeResearch Institute of InvestmentAnalysts Malaysia
6th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-20267099
Fax: 03-20263701
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Annual Repor t 2002
Kuala Lumpur Stock Exchange
The Perdana Putra Building houses the offices of the Prime Minister of Malaysia. It lies 50 metres
above sea-level and offers a splendid view of the Putrajaya Lake. A distinctive landmark in the
Federal Territory, the Perdana Putra Building is a majestic structure of natural stone, elegant
domes and a green-pitched roof. The offices of the Deputy Prime Minister as well as the Ministers and
Deputy Ministers in the Prime Minister’s department are also located here.
The Perdana Putra Building’s sense of dynamism, stability, superior infrastructure and high-tech security
measures are characteristics mirrored by the Exchange. These characteristics form the Exchange’s core
values and will enable it to efficiently and effectively meet the challenges that lie ahead.
Perdana Putra Building
Annual Repor t 2002
Malaysia DerivativesExchange Bhd (MDEX)
Kuala LumpurStock Exchange (KLSE)
Labuan InternationalFinancial Exchange (LFX)
Securities ClearingAutomated Network
Services Sdn Bhd (SCANS)
Malaysian DerivativesClearing House Bhd (MDCH)
Malaysian CentralDepository Sdn Bhd (MCD)
KLSE Technology Sdn Bhd
KLSE Information ServicesSdn Bhd (KLSE IS)
Malaysian Share RegistrationServices Sdn Bhd (MSRS)
KLSE Property Management Sdn Bhd (KPM)
Yayasan BSKL (YBSKL)
Research Institute of InvestmentAnalysts Malaysia (RIIAM)
G r o u p
KLSE
KLSE TECH
DATUK MOHAIYANISHAMSUDINDeputy Chairman
• Master of BusinessAdministration(Finance), CornellUniversity, Ithaca, NewYork, USA;
• Bachelor of Arts(Economics), KnoxCollege, Galesburg,Illinois, USA;
• Elected to theCommittee:01.01.1999 - present;
• Elected as DeputyChairman: 01.01.2000– present.
TAN KIM LEONG, JPCommittee Member
• Member of MalaysianInstitute of Accountants;
• Member of MalaysianInstitute of CertifiedPublic Accountants;
• Fellow of Institute ofChartered Accountants,Australia;
• Fellow of MalaysianAssociation of theInstitute of CharteredSecretaries &Administrators;
• Government appointedCommittee Member:18.12.1996 - present.
ABDUL KADIRHJ MD KASSIM Committee Member
• Bachelor of Laws (Hons)University of Singapore;
• Advocate & Solicitor,Malaysia;
• Government appointedCommittee Member:1.3.1998 – present.
ABDUL JABBARABDUL MAJID Committee Member
• Member of MalaysianInstitute of Accountants;
• Member of MalaysianInstitute of Certified PublicAccountants;
• Fellow of Institute ofChartered Accountants,Australia;
• Government appointedCommittee Member:18.1.2001 – present.
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Kuala Lumpur Stock Exchange
M e m b e r s
Commit tee
DATO’ MOHAMMED AZLAN HASHIMExecutive Chairman
• Bachelor of Economics (Accounting), MonashUniversity, Australia;
• Member of Malaysian Institute of Accountants;
• Member of Institute of Chartered Accountants,Australia;
• Government appointed Committee Member:18.12.1996 – 31.12.1997;
• Government appointed Executive Chairman:1.1.1998 – present.
PETER LEONG TUCK LENG Committee Member
• Master of Science(Economics), LondonSchool of Economics;
• Elected to theCommittee: 1.1.2001 –present.
YUSLI MOHAMEDYUSOFF Committee Member
• Bachelor of Arts (Hons)Economics, Universityof Essex, England;
• Member of Institute ofChartered Accountants,England and Wales;
• Elected to theCommittee: 1.1.2001 –present.
DATIN MARIAMYUSOF Committee Member
• Certificate inInvestment Analysis,Mara Institute ofTechnology;
• Bachelor of Arts(Hons) English,University of Malaya;
• Elected to theCommittee: 1.1.2002- present.
ABDUL RAUF RAMLI Committee Member
• Bachelor of Economics(Analytical), University ofMalaya;
• Diploma in InvestmentAnalysis (MalaysianAssociation of Productivity,Permodalan NasionalBerhad, Western AustralianInstitute of Technology);
• Elected to the Committee:1.1.2002 – present.
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Annual Repor t 2002
Abdul Kadir HjMd KassimKLSE, LFX, SCANS,YBSKL
Abdul JabbarAbdul MajidKLSE, MDEX, LFX,SCANS, KLSE IS,KLSE TECH
Peter LeongTuck LengKLSE, LFX, SCANS
Yusli Mohamed YusoffKLSE, MDEX, SCANS, KLSE TECH, KPM
Dato' MohammedAzlan Hashim KLSE, MDEX, LFX,SCANS, MCD, KLSE TECH, KLSE IS,MSRS, KPM, YBSKL,RIIAM
Datuk MohaiyaniShamsudinKLSE, SCANS, RIIAM
Tan Kim Leong, JPKLSE, SCANS, MCD,KPM, RIIAM
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Kuala Lumpur Stock Exchange
B o a r d M e m b e r s
Group
Md Nor AhmadMDEX, LFX, MDCH,KLSE TECH, KLSE IS,KPM
Alvin Kwan Wing YewMDEX, MDCH
Mohd Zain OmarMDEX
Datin Mariam YusofKLSE, LFX, SCANS,RIIAM
Abdul Rauf RamliKLSE, SCANS, MCD
Dato' Seri HwangSing LueMDEX, KLSE TECH
Tunku Dato' SeriNadzaruddinTuanku Ja'afarMDEX
Wong Fook WahMDEX
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Annual Repor t 2002
Vaseehar HassanAbdul RazackLFX
Raymond WongLFX
Jeremy C CampsLFX
Louise PaulLFX
Dato' Ahmad JohanRaslanLFX
Datuk Dr AwangAdek HussinLFX
Mohd Nasir AliLFX
Prof Madya DrMohd Daud BakarLFX
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Kuala Lumpur Stock Exchange
Group B o a r d M e m b e r s
Mohd RidzalMohd SheriffMDCH
Dr Zaha Rina ZahariMDCH
Dato' Hj MegatNajmuddin KhasDato' Seri (Dr) HjMegat KhasSCANS, MSRS
Dato' Mohd SallehAbdul MajidSCANS, YBSKL
Laren Tan Kian SengMDCH
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Annual Repor t 2002
Ahmad HizzadBaharuddinMDCH
Steven Lai Choon LimMDCH
Raghbir Singh BhartMDCH
Ng Chin LengMDCH
KhairussalehRamliMDCH
Noripah KamsoMDCH
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Kuala Lumpur Stock Exchange
Group B o a r d M e m b e r s
Chan Guan SengMCD
Datuk AmirshamA AzizMCD
Ahmad SubriAbdullahMCD
Abdul Hamid ShMohamedKLSE TECH, KLSE IS,RIIAM
Ungku A Razak KLSE TECH, MSRS
Ravindran NavaratnamKLSE TECH
Datuk AzlanMohd ZainolMCD
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Annual Repor t 2002
Datuk Hj AbdulKarim HaronYBSKL
Dato' N Sadasivana/l N N PillayYBSKL
Dato' Che MohdAnnuar Che MohdSenawiYBSKL
Tan Sri ZulkifliMahmoodMSRS
Mohamad ShuibAbdul GhaniMSRS
Abdul Razak MohdAminKPM
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Kuala Lumpur Stock Exchange
Group B o a r d M e m b e r s
Othman AbdullahYBSKL
Tan Sri Dato' DrAbdullah Sanusi HjAhmadYBSKL, RIIAM
Tan Sri Dato' DrSyed JalaluddinSyed SalimRIIAM
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Annual Repor t 2002
Azman Shah MdYaman Company Secretary
Dato’ MohdSalleh AbdulMajid President
Md Nor AhmadDeputy President,Exchange Operations
Abdul Hamid ShMohamedDeputy President,Strategy & Development
KLSE
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Kuala Lumpur Stock Exchange
M a n a g e m e n t T e a m
Group
Abdul Razak Mohd AminSenior VicePresident, Group HumanResource
Lew Lup SeongSenior VicePresident, Finance &Administration
Low PhengSenior VicePresident, Group Internal Audit
RavindranNavaratnamChief InformationOfficer
Wong Chew SuitVice President, Chief InformationOfficer’s Office
Tan Chun WengSenior Vice President,Financial Review &Surveillance, ListingGroup
Ch’ng Boon HuatVice President, FinancialReview & Surveillance,Listing Group
Selvarany RasiahLegal Advisor, Listing Group
Devanesan EvansonSenior Vice President,Legal Advisory &Membership Services,Market Supervision Group
Latifah HajiMohd YusofSenior VicePresident, Listing Operations, Listing Group
JohanAbdullahSenior VicePresident,Securities Issues, Listing Group
KhairussalehRamliSenior VicePresident, Policy &Development
AzranOsman-RaniHead, BusinessTransformationProject,Strategy &Development
Tai Yoke PengVice President,Organisation &Methods, Policy &Development
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Annual Repor t 2002
FatimahZainal AbidinVice President,Surveillance &Investigation, MarketSupervision Group
Qua Gek KimSenior Vice President,Public Information
Winnie ChoongAh NyokVice President,Public Information
Wong Kay YongSenior Vice President,Surveillance &Investigation, MarketSupervision Group
Norhan Che AwangSenior Vice President,Compliance & Inspection,Market Supervision Group
Lim Boon Hang Vice President,Intermediary Review Unit, Legal Advisory &Membership Services,Market Supervision Group
Khairul AnnuarAziziVice President,Compliance & Inspection, MarketSupervision Group
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Kuala Lumpur Stock Exchange
Group M a n a g e m e n t T e a m
KLSE
Shukoriah Mohd NorSenior Manager, Public Information Centre
Maria Raj Abdullah Senior Manager,MESDAQ Division
Alice ThomasVice President, Group Communications
Mohamad Azam Ali Vice President,Public Affairs
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Annual Repor t 2002
Sree Kumar C K NayarSenior Manager,Strategic Planning& ProductDevelopment
ManojDevadasanSenior Manager, Legal & CorporateAffairs
MDEX
Dr Zaha RinaZahariChief OperatingOfficer
Raghbir SinghBhartGeneral Manager
PasupathyVelauthahSenior Manager, Audit &Compliance
Edmund KohYee Loong Manager,ManagementInformationSystems
Siah BoonPengSenior Manager, Trading
Allan Au-YongKean WengSenior Manager, BusinessDevelopment
RosliMahmoodSenior Manager, MarketSurveillance
MDEX
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Kuala Lumpur Stock Exchange
Group M a n a g e m e n t T e a m
Lim LeanBengVice President,Clearing
Azman ShahMd YamanVice President,Corporate Affairs,Legal &Compliance
Mohd RidzalMohd SheriffGeneral Manager/Chief ExecutiveOfficer, MDCH
Cheah Sin KeatVice President, Risk Management
Nadzirah AbdRashidVice President, Finance &Administration
S LoganathanGeneral Manager
Mohd IzzaneeIdrisSenior Manager
LFX
SCANS
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Annual Repor t 2002
MCD
KLSE TECH
Chua KongKhaiVice President, Depository
Michelle TogPhui QuanManager,Customer Service
Fathi RidzuanAhmad FauziGeneral Manager
Yew Kim KeongSenior VicePresident, FacilitiesManagement
Ang Ting KangSenior VicePresident,Development &Maintenance
Ungku ARazakExecutive Director
Zulkifli HarunSenior VicePresident,Business Planning& Development
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Kuala Lumpur Stock Exchange
Group M a n a g e m e n t T e a m
KPM RIIAM
KLSE IS MSRS
KhamarulBaharainSulaimanGeneral Manager
Abdul NasirAhmad DaudGeneral Manager
Abdul RazakMohd AminGeneral Manager
Azmi OthmanManager, BuildingManagementServices
Abdullah NaibDirector
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Annual Repor t 2002
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Kuala Lumpur Stock Exchange
AUDIT SUB-COMMITTEE
Objectives • Assist the KLSE Committee in discharging its responsibilities relating to accounting
practices of KLSE and its Group of Companies.
• Ensure the adequacy, efficiency and effectiveness of the Group’s administrative, operatingand accounting controls and procedures.
• Oversee and evaluate the quality of the audits conducted both by the Group’s internaland external auditors.
Members1. Tan Kim Leong, JP
(Chairman)
2. Datuk Mohaiyani Shamsudin
3. Datuk Mohamed Adnan Ali
4. Dr Abdul Samad Alias
5. Philip T N Koh
BUDGET AND INVESTMENT SUB-COMMITTEE
Objectives• Ensure that the KLSE and its Group of Companies have a proper budgetary system in
place that will help to plan, co-ordinate, evaluate and control financial activities effectively.
• Ensure that proper allocations are made to enable effective and efficient:-
- operations of the KLSE and its Group of Companies;
- implementation of the development plans of the KLSE and its Group Companies; and
- utilisation of financial resources.
• Review and monitor the financial position of the KLSE and its Group of Companies.
• Ensure that the cash of the KLSE and its Group of Companies is preserved and secured.
• Ensure that the funds are properly invested and maintained with the view to maximisereturn/yields on investment.
• Appoint appropriate advisors in managing its surplus funds.
• Formulate policies and guidelines for the investment of the KLSE and its Group ofCompanies’ surplus funds.
• Review the investment policy of the KLSE and its Group of Companies to ensure thatoptimal yield is achieved with minimum risk exposure to the funds.
Members1. Dato’ Mohammed Azlan Hashim
(Chairman)
2. Peter Leong Tuck Leng
3. Abdul Rauf Ramli
4. Raja Ahmad Raja Jallaludin
5. Harry K Menon
6. Jimmy Lee Soon Teck
7. Razman Abu Zarim
DISCIPLINARY SUB-COMMITTEE
Objectives• Consider matters relating to disputes among Member Companies.
• Consider disciplinary actions against Members, Member Companies and Dealers’Representatives of the Exchange.
Members1. Abdul Kadir Hj Md Kassim
(Chairman)
2. Tan Kim Leong, JP
3. Yusli Mohamed Yusoff
4. Datin Mariam Yusof
KLSE S u b - C o m m i t t e e s
DEVELOPMENT SUB-COMMITTEE
Objectives • Review changes, revisions or additions to the KLSE Rules and Regulations to
determine if they are consistent with the mission and objectives of the KLSE.
• Review the role and direction of the KLSE and its Group of Companies in line with itsmission and vision.
Members1. Dato’ Mohammed Azlan Hashim
(Chairman)
2. Datuk Mohaiyani Shamsudin
3. Dato’ Megat Najmuddin Khas Dato’ Seri (Dr) Hj Megat Khas
4. Dato’ Seri Hwang Sing Lue
5. Dato’ Ahmad Johan Raslan
6. Ching Yew Chye
7. T. Jeyaratnam
8. Yang Shu Yin
9. Azmi Abdullah
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Annual Repor t 2002
LISTING SUB-COMMITTEE
Objective• Assist the KLSE Committee in discharging all matters relating to listing and post-listing
functions of the KLSE in a speedy and efficient manner.
Members1. Dato' Mohammed Azlan Hashim
(Chairman)
2. Datuk Mohaiyani Shamsudin
3. Abdul Kadir Hj Md Kassim
4. Peter Leong Tuck Leng
5. Dato’ Megat Najmuddin Khas Dato’ Seri (Dr) Hj Megat Khas
6. Dato' Abdul Hamidy Hafiz
7. Azzat Kamaludin
8. Iskander Ismail
INDEX SUB-COMMITTEE
Objectives• Responsible for the construction and establishment of new indices as directed
by the KLSE Committee or whenever necessary.
• Assist in other related securities areas, if possible, as determined by the KLSECommittee.
Members1. Dato' Mohammed Azlan Hashim
(Chairman)
2. Dr Zaha Rina Zahari
3. Dato’ Azim Mohd Zabidi
4. Dr Aziz Abu Hassan
5. Dr Kok Kim Lian
6. Jamiah Abdul Hamid
7. Yoon Mun Thim
8. Tunku Afwida Tunku Abdul Malek
MEMBERSHIP SUB-COMMITTEE
Objective • To consider and recommend to the KLSE Committee applications for
Membership of the Exchange pursuant to the Exchange’s Articles of Associationand Rules, after having duly interviewed the individual applicant, proposedDealing Members and Non-Dealing Members, as the case may be.
Members1. Datin Mariam Yusof
(Chairman)
2. Peter Leong Tuck Leng
3. Dato’ Megat Najmuddin Khas Dato’ Seri (Dr) Hj Megat Khas
4. Datuk Teh Ghee Kok
5. Zaiton Md Hassan
6. Izlan Izhab
KLSE COMPENSATION FUND SUB-COMMITTEE
Objective• To administer and manage the Compensation Fund in accordance with Part VIII of
the Securities Industry Act, 1983 (SIA) and the Securities Industry (CompensationFund) Regulations 1997 (the Regulations).
Members1. Abdul Jabbar Abdul Majid
(Chairman)
2. Yusof Abu Othman
3. David Siew Kah Tong
4. Muthana Abdullah
5. Sree Santhan Eliathamby
Mercu Tanda
The Mercu Tanda is the Putrajaya landmark. Regally reaching for the sky, the Mercu
Tanda signals the advent of the new administrative capital of Malaysia and the
country’s first Intelligent Garden City that combines modern amenities, sophisticated
information network based on multimedia technologies and state-of-the-art infrastructure.
Annual Repor t 2002
As the KLSE progresses to become the Malaysian exchange, these same qualities and more will define it in both
the regional and global arena, and enable the Exchange to play a prominent role in the further development and
success of nation and economy.
30
Kuala Lumpur Stock Exchange
Calendar o f E v e n t s
25 October 2001Lord Mayor of City of London Visits KLSEKLSE had the honour of hosting a visit by the Lord Mayor ofthe City of London, the Right Honourable Sir David Howard,and a delegation of representatives from the financialservices industry of London on 25 October 2001.
A joint round-table discussion with the KLSE and SecuritiesCommission was held and opportunity was taken to briefthe visitors on the latest developments in the Malaysiancapital market.
1 November 2001Security Deposit/Bank GuaranteeRequirementMalaysian Central Depository Sdn Bhd (MCD) instituted asecurity deposit/bank guarantee requirement for all requestsfor the Record of Depositors.
7 November 2001Standardisation of Statement CycleMCD implemented the standardisation of statement cycle,wherein the system assigns a single statement cycle todepositors who have more than one CDS account.
10 November 200125th Annual General Meeting andAnnual Members’ DinnerKLSE’s 25th Annual General Meeting was held on 10November 2001 at Exchange Square, Bukit Kewangan.
KLSE contributed RM10,000 each to 28 charitableorganisations at the Members’ Dinner later that evening.
12 November 2001KLSE Hosts 4th EAOSEF WorkingCommittee MeetingKLSE hosted the 4th East Asian and Oceanian StockExchanges Federation (EAOSEF) Working Committee Meetingon 12 November 2001. 20 representatives from 13 of the15 EAOSEF member exchanges attended the meeting.
The meeting discussed several matters includingRecommendations Concerning Access to EAOSEFmembership and an update on the co-trading projectbetween Australian Stock Exchange and SingaporeExchange Limited.
28 December 2001MDEX Goes Fully ElectronicMalaysia Derivatives Exchange Bhd (MDEX) ended openoutcry floor trading on 27 December 2001 and commencedelectronic trading from 28 December 2001 for Crude PalmOil Futures and 3-month KLIBOR futures. Presently, the fullrange of MDEX products, including KLSE CI Futures andOptions contracts are electronically traded.
Lord Mayor of the City of London receives a memento fromthe KLSE Executive Chairman
Donations to charitable organisations during the Members’ Dinner
The MDEX open outcry system has been replaced by afully automated electronic system
31
Annual Repor t 2002
28 December 2001Futures Commission Rates FullyNegotiableIn line with the amendments to Guideline 3 of the MDEXBusiness Rules and as part of the recommendations in theCapital Market Masterplan to enhance the competitivenessof the derivatives market, the futures commission ratesbecame fully negotiable effective 28 December 2001.
25 January 2002Inaugural Primary Listing at LFXThe first primary listing on Labuan International FinancialExchange (LFX) took place on 25 January 2002 with thelisting of USD150 million Serial Islamic Lease Sukuk, issuedby First Global Sukuk Inc for Kumpulan Guthrie Bhd.
5 March 2002KLSE Corporate Awards 2001Presentation CeremonyThe KLSE presented a total of 13 awards to deservingpublic listed companies at the second awards presentation.The awards took into account the ability of public listedcompanies to successfully practise high standards ofcorporate conduct as a mechanism of self-regulation. Theawards aim to recognise public listed companies whichestablish and practice a high standard of accountability andresponsibility to shareholders and investors. The event wasgraced by the Prime Minister who is also the Minister ofFinance.
6 March 2002Annual Palm & Lauric Oils Conference &ExhibitionMDEX organised its Annual Palm & Lauric Oils Conference &Exhibition: Price Outlook 2002/2003 from 6 – 8 March 2002in Kuala Lumpur. The event, the 13th in this series, servedas a gathering for those involved in the global oils and fatsindustry, in particular, the palm and lauric oils sector.
6 March 2002Designation of Inactive Account StatusIn a move to provide long-term investors with additionalsecurity and protection against unauthorised transactionsand to further enhance efficiency of the Central DepositorySystem (CDS), MCD designated the status of certainsecurities accounts as inactive with effect from 6 March2002.
An account is termed as inactive when there are depositedsecurities in it, but there is no debit or credit entry for atleast 36 consecutive months from the date of the last entry.A CDS account will be classified as a dormant accountwhen it has no deposited securities (nil balance) and has nodebit/credit entry for 36 months from the date of nil balance.
8 March 2002KLSE ‘Smart Investor’ Roadshows 2002A series of roadshows titled ‘Smart Investor’ was organisedas part of KLSE’s efforts to promote informed investing andthe use of facilities and resources at Balai Maklumat BSKL.These roadshows were conducted in 2 parts.
The first phase began in March and ended in May, while thenext phase started in June and ended in September. Theroadshows offered comprehensive programmes with theobjective of reaching the various target groups of bothexperienced and new investors, young investors, womeninvestors and those interested in investing in line with Syariahprinciples.
18 March 2002MESDAQ Market at KLSE – SingleMalaysian Exchange EstablishedWith the establishment of the MESDAQ Market at KLSE, asingle Malaysian exchange under the auspices of the KLSEGroup was established, providing opportunities forinvestments in equities, futures and offshore financialinstruments.
Primary Industries Minister, Dato’ Seri Dr Lim Keng Yaik,was guest of honour at the Annual Palm & Lauric OilsConference & Exhibition
KLSE Corporate Awards 2001 presentation ceremony
32
Kuala Lumpur Stock Exchange
25 March 2002Implementation of Circuit BreakerA Circuit Breaker mechanism was implemented by KLSE aspart of the efforts to ensure greater stability in thestockmarket. The Circuit Breaker is a broader-basedapproach in addressing excessive downward movement inthe stockmarket by temporarily halting trading. This willprovide the opportunity for greater information disseminationfor all market participants to make well-consideredinvestment decisions.
29 March 2002MDEX Offers Malaysia’s First BondFutures Contract and Revises TradingHours for 3-month KLIBOR FuturesContractMDEX introduced a new instrument, 5-year MalaysianGovernment Securities Futures (FMG5), the country’s firstbond futures contract. Malaysian Government Securities(MGS) are medium to long-term borrowings by thegovernment for financing long-term development projects.
In conjunction with the launch of FMG5, MDEX standardisedthe trading hours for the 3-month KLIBOR Futures Contractwith that of FMG5. Trading hours for other products tradedon MDEX remain status quo.
7 May 2002Venture 2002Malaysia’s first business plan competition, Venture 2002,was jointly organised by the MESDAQ Market, MalaysianInstitute of Management and McKinsey & Company,Malaysia.
The objective of the competition is to create a vibrantentrepreneurial environment based on 4 elements – ideas,experienced management, venture capital and a networkcommunity. The competition is modeled after other similarand successful business plan competitions held around theworld in Germany, Switzerland, the Netherlands, SouthAfrica, India and Singapore.
There are three phases to the competition. Phase 1concluded in March 2002, while Phase 2 ended in June2002 and Phase 3 closed in September 2002. The prizepresentation for Phase 1 was held on 7 May 2002.
21 May 20027th RIIAM ConvocationAt the 7th Research Institute of Investment AnalystsMalaysia (RIIAM) Convocation held on 21 May 2002, 148students received the RIIAM Diploma in Investment Analysis.870 students have graduated from this programme since itsinception in 1994.
4 June 2002Provision of Information Related to IPOsMCD introduced the Provision of Information related to InitialPublic Offerings (PIPO) to reduce the time taken inprocessing Initial Public Offering applications by the issuinghouses.
13 June 2002Familiarisation Visits to Public ListedCompaniesAs part of KLSE’s ongoing efforts to familiarise itself with theoperations and plans of public listed companies, the Exchangevisited INTI Universal Holdings Berhad on 13 June 2002.
Similar visits were made to Hing Yiap Knitting Berhad on 8August 2002 and Amway (M) Holdings Berhad on 31October 2002.
Recipients of the ASCM/RIIAM special awards at the 7thRIIAM Convocation
The prize presentation for Phase 1 of Venture 2002
A site tour during the familiarisation visit to Hing YiapKnitting Berhad
Calendar o f E v e n t s
33
Annual Repor t 2002
29 June 2002KLSE Annual Dialogue SessionsKLSE commenced its annual dialogue sessions withindustry partners on 29 June 2002. These dialogues are forthe purpose of discussing current issues of mutual interest.
30 July 2002Visit by Deputy Prime Minister ofMalaysiaThe KLSE hosted an official visit by the Deputy PrimeMinister of Malaysia, YAB Dato’ Seri Abdullah Hj AhmadBadawi on 30 July 2002, where the DPM was briefed oncurrent and future developments of the KLSE.
30 July 2002Malaysian Capital Market Summit 2002:The Present State of the SecuritiesIndustryKLSE co-organised the Malaysian Capital Market Summit2002 with Asian Strategy & Leadership Institute. At thesummit, the guest-of-honour Dato’ Mustapa Mohamad,Executive Director of the National Economic Action Councilalso launched the special cover edition of ‘Malaysia: AsianPioneer’, a joint publication by KLSE and Euromoney Books.The publication is a useful guide for foreign investors.
3 August 2002KLSE Annual Jogathon 2002A total of 200 KLSE Group staff participated in the KLSEAnnual Jogathon held on 3 August 2002 at the LakeGardens, Kuala Lumpur. Staff started to gather at thejogathon site as early as 6.00 a.m. that morning. It was afun-filled day, followed by aching muscles the next day formost of the participants.
6 August 2002KLSE-PwC Commence CorporateGovernance Survey 2002KLSE and Pricewaterhouse Coopers (PwC) commenced theCorporate Governance Survey 2002 to gauge currentperceptions and expectations of the level of corporategovernance in Malaysia. KLSE and PwC conducted abenchmark survey in 1998 to assess the level of awarenessand understanding of corporate governance in Malaysia.The 2002 survey is a follow-up to that survey to evaluate theprogress and changes on corporate governance in view ofrecent developments.
10 August 2002KLSE Group Staff Annual DinnerA total of 1,500 KLSE Group staff and their spousesattended the annual event held on 10 August 2002 atSunway Lagoon Hotel. Themed ‘Exchange @ D’Movies’,there was a host of activities in line with the theme that keptthe staff entertained from the start to the end.
13 August 2002Annual Kuala Lumpur Rat Race forCharity 2002Yayasan BSKL hosted the Annual Kuala Lumpur Rat Racefor Charity 2002, with funds raised at the event contributedto community organisations.
The Deputy Prime Minister of Malaysia receives a crystalreplica of the KLSE building as a souvenir
KLSE Group Staff Annual Dinner 2002 was a colourful,movie-inspired night
KLSE’s team emerged champions at the Annual KualaLumpur Rat Race for Charity 2002
34
Kuala Lumpur Stock Exchange
46 companies fielding 53 teams raised a total ofRM511,500.00; this was subsequently donated to LittleSisters of the Poor, Penang, National Stroke Association ofMalaysia, Selangor, Federal Territory Association forRetarded Children, Malaysian AIDS Foundation-PaediatricAIDS Fund and Women’s Aid Organisation.
1 September 200213th Annual KLSE-FPLC GolfTournament & LuncheonThe 13th Annual KLSE-FPLC Golf Tournament & Luncheonwas held at the Glenmarie Golf & Country Club. The guestof honour was Seri Paduka Baginda Yang diPertuan AgongTuanku Syed Sirajuddin Ibni Al-Marhum Tuanku Syed PutraJamalullail, who played for the KLSE team. KLSE tookhome the Challenge Trophy at the tournament.
2 September 2002Clearing, Settlement and DepositoryConference 2002The 2nd Clearing, Settlement and Depository Conference,themed "The Future of Securities Settlement: What Needsto be Done" was held on 2 September 2002 at JW MarriottHotel, Kuala Lumpur.
The conference was attended by 246 participants,comprising representatives from stockbroking companies,Bank Negara Malaysia, Securities Commission, CompaniesCommission of Malaysia and the KLSE Group.
The 1-day conference featured the following topics:
• Securities Settlement Systems: The Committee onPayment and Settlement System – InternationalOrganisation of Securities Commission’sRecommendation for Securities Settlement System
• Straight Through Processing
• The World of Securities Messaging Standards
• Demutualisation of Exchanges
• Vital Developments of Key Clearing Houses andDepositories in Asia
• Institutional Investors’ Viewpoint on Corporate ActionsProcessing
5 September 2002MCD Introduces Bulk Transfer FacilityThe Bulk Transfer Facility was introduced to assist theofferor in a general offer by automating the existingcorporate exercise and transfer processes.
18 September 2002LFX Successfully Taps Islamic FinancialMarketThe secondary listing of the Malaysian Government’sUSD600 million Sukuk Al-Ijarah Trust Certificates istestimony to LFX’s success in tapping into the Islamicfinancial market.
The certificates, issued by Malaysia Global Sukuk Inc., is thethird Syariah-compliant financial instrument to be listed onLFX.
1 October 2002Establishment of Clearing, Settlementand Depository GroupEffective 1 October 2002, Malaysian Central Depository SdnBhd, Malaysian Derivatives Clearing House Bhd andSecurities Clearing Automated Network Services Sdn Bhdhave been placed under the Clearing, Settlement andDepository (CSD) Group of the KLSE.
The streamlining of common functions is designed tomaximise the utilisation of support services within the CSDGroup and to better serve the needs of market participantsand the industry.
2 October 2002Yang diPertuan Agong Makes a WorkingVisit to KLSESeri Paduka Baginda Yang diPertuan Agong Tuanku SyedSirajuddin Ibni Al-Marhum Tuanku Syed Putra Jamalullailconducted a working visit to the KLSE on 2 October 2002.During the visit, His Majesty was updated and briefed on theoperations and developments of the KLSE. His Majestycompleted the visit of the Exchange with a tour of theInformation Gallery of KLSE.
Yang diPertuan Agong makes a working visit to KLSE
Prize-giving at the 13th Annual KLSE-FPLC GolfTournament & Luncheon
Calendar o f E v e n t s
35
Annual Repor t 2002
5 October 2002KLSE Website Now Available in Bahasa MelayuKLSE has translated most of the information available on itswebsite into Bahasa Melayu. This move is aimed at wideningaccess to the information available at the website as part ofKLSE’s effort to promote informed investing. The BahasaMelayu version is accessible on the main page of the KLSE website at www.klse.com.my.
21 October 2002Consolidated CDS Statement forEffective Portfolio ManagementMCD launched a new facility known as the ConsolidatedCDS Statement of Account (CSA). CSA provides the optionfor investors with multiple CDS accounts to receive details ofall securities transactions in a consolidated statement.
CSA provides depositors with a more convenient way ofmonitoring their shareholdings held in different CDSaccounts maintained at different Authorised DepositoryAgents. CSA also assists CDS account holders in makingfast and accurate decisions on their investments in order tomanage their portfolios more effectively.
15 December 2002World Federation of Exchanges Forumon Managing Exchanges in EmergingEconomiesKLSE hosted this World Federation of Exchanges event heldfrom 15–18 December 2002. The Forum, attended byrepresentatives from over 20 exchanges and 15 relatedorganisations worldwide, covered a wide range of issuesfrom growing market liquidity, developing infrastructure, bestpractices, implementing standards, enforcing rules,demutualisation of exchanges, and strategies in attractinginternational investors.
30 December 2002Streamlined Processes for TransferMCD, as part of its ongoing efforts to meet the changingneeds of its depositors, introduced enhanced processes inthe handling of securities transfer requests on 30 December2002. The changes will ensure more efficient processing oftransfer requests within the Central Depository System.
31 December 2002Scheme B of CLOB SolutionScheme B of the CLOB solution was implemented on 31December 2002. Under the comprehensive CLOB solutionadopted by KLSE and Singapore Exchange Limited inFebruary 2000, Scheme B will facilitate the release of CLOBsecurities for trading on the KLSE, over a period of 9months, on a weekly basis, beginning 31 December 2002and ending on 29 September 2003.
KLSE’s Executive Chairman speaking at the Forum onManaging Exchanges in Emerging Economies
36
Kuala Lumpur Stock Exchange
Membership R e p o r t
During the year under review (1 July 2001 to 31 December 2002):-(1) Cessation of Fifteen Member Companies (Voting Members):
No. Member Company Date ofCessation
1 Upen Securities Sdn Bhd 09.07.2001
2 Alor Setar Securities (2000) Sdn Bhd 20.08.2001
3 Malpac Securities Sdn Bhd 17.09.2001
4 South Johor Securities Sdn Bhd 17.09.2001
5 Sarawak Securities Sdn Bhd 26.11.2001
6 Peninsula Securities Sdn Bhd 03.12.2001
7 Pan Malaysia Equities Sdn Bhd 07.12.2001
8 Kin Khoon & Co Sdn Bhd 04.02.2002
9 ShareTech Securities Sdn Bhd 17.06.2002
10 A. A. Anthony & Co Sdn Bhd 26.08.2002
11 Soon Theam Securities Sdn Bhd 02.09.2002
12 Kestrel Securities Sdn Bhd 16.09.2002
13 Fima Securities Sdn Bhd 28.10.2002
14 Amsteel Securities (M) Sdn Bhd 11.11.2002
15 Smith Zain Securities Sdn Bhd 16.12.2002
(2) Seven Corporations were admitted as Non-Dealing Members of the Exchange(Corporate Shareholder), via the following Member Companies:
No. New Non-Dealing Member Name of Member Date of(Corporate Shareholder) Admission
1 CIMB Securities Sdn Bhd ShareTech Securities Sdn Bhd 23.07.2001
2 K & N Kenanga Holdings Bhd Sarawak Securities Sdn Bhd 22.08.2001
3 K & N Kenanga Bhd Peninsula Securities Sdn Bhd 30.08.2001
4 Dynamic Pearl Sdn Bhd A.A. Anthony & Co Sdn Bhd 30.08.2001
5 PM Asset Management Sdn Bhd PM Securities Sdn Bhd 08.12.2001
6 Permodalan Nasional Bhd BIMB Securities Sdn Bhd 03.12.2002
7 RHB Sakura Merchant Bankers Bhd RHB Securities Sdn Bhd 09.12.2002
(3) Twenty-one Corporations resigned as Non-Dealing Members of the Exchange(Corporate Shareholder), via the following Member Companies:
No. Non-Dealing Member Name of Member Date of(Corporate Shareholder) Resignation
1 Amal Bakti Sdn Bhd Upen Securities Sdn Bhd 09.07.2001
2 Share Technology Capital Group Sdn Bhd ShareTech Securities Sdn Bhd 23.07.2001
3 Kelanamas Capital Sdn Bhd Alor Setar Securities (2000) Sdn Bhd 13.08.2001
4 Ideal Appraisal Sdn Bhd Alor Setar Securities (2000) Sdn Bhd 20.08.2001
5 CMS Capital Sdn Bhd Sarawak Securities Sdn Bhd 22.08.2001
6 Pan Pacific Asia Bhd Peninsula Securities Sdn Bhd 30.08.2001
7 Malpac Holdings Bhd Malpac Securities Sdn Bhd 17.09.2001
8 Arab-Malaysian Securities Sdn Bhd South Johor Securities Sdn Bhd 17.09.2001
9 K & N Kenanga Holdings Bhd Sarawak Securities Sdn Bhd 26.11.2001
10 K & N Kenanga Bhd Peninsula Securities Sdn Bhd 03.12.2001
37
Annual Repor t 2002
(3) Twenty-one Corporations resigned as Non-Dealing Members of the Exchange(Corporate Shareholder), via the following Member Companies: (Contd.)
No. Non-Dealing Member Name of Member Date of(Corporate Shareholder) Resignation
11 Pan Malaysia Capital Bhd Pan Malaysia Equities Sdn Bhd 07.12.2001
12 Pan Malaysia Capital Bhd PM Securities Sdn Bhd 08.12.2001
13 Asian Pac Holdings Bhd Kin Khoon & Co Sdn Bhd 04.02.2002
14 CIMB Securities Sdn Bhd ShareTech Securities Sdn Bhd 17.06.2002
15 Dynamic Pearl Sdn Bhd A. A. Anthony & Co Sdn Bhd 26.08.2002
16 Tongkah Holdings Bhd Kestrel Securities Sdn Bhd 16.09.2002
17 Capitalcorp Holdings Sdn Bhd Fima Securities Sdn Bhd 28.10.2002
(now known as Fima Securities Holdings Sdn Bhd)
18 Datavest Sdn Bhd Amsteel Securities (M) Sdn Bhd 11.11.2002
19 Yayasan Pembangunan Ekonomi Islam Malaysia BIMB Securities Sdn Bhd 03.12.2002
20 RHB Capital Bhd RHB Securities Sdn Bhd 09.12.2002
21 Smith Zain (M) Sdn Bhd Smith Zain Securities Sdn Bhd 16.12.2002
(4) Fifteen individuals were admitted as Dealing Members, viz:
No. Name Member Company Date ofAdmission
1 Mohd Idris bin Ahmad Jais OSK Securities Bhd 18.07.2001
2 Johari bin Hassan Jupiter Securities Sdn Bhd 11.09.2001
3 Loong Sze Tung JB Securities Sdn Bhd 25.09.2001
4 Lim Tiong Chin JB Securities Sdn Bhd 01.10.2001
5 Hamzah bi Mahmood Mayban Securities Sdn Bhd 04.12.2001
6 Ling Hee Keat UT Securities Sdn Bhd 03.01.2002
7 Rashidan Shah bin Abdul Rahim BBMB Securities Sdn Bhd 11.02.2002
8 Hashimah bt Ismail Kuala Lumpur City Securities Sdn Bhd 31.05.2002
9 Ooi Hun Pin Allied Avenue Assets Securities Sdn Bhd 05.06.2002
10 Saiful Bahri bin Zainudin Affin-UOB Securities Sdn Bhd 06.06.2002
11 Alewi bin Ariffin HLG Securities Sdn Bhd 26.06.2002
12 Teoh Cheng Soon PB Securities Sdn Bhd 02.08.2002
13 Abdul Rahman bin Ahmad A. A. Anthony Securities Sdn Bhd 12.09.2002
14 Ramli bin Mahmudin PM Securities Sdn Bhd 04.10.2002
15 Yeo Khee Nam Avenue Securities Sdn Bhd 25.10.2002
(5) Thirty-one individuals resigned/ceased as Dealing Members, viz:
No. Name Member Company Date ofResignation/Cessation
1 Leow Wong Kong Kestrel Securities Sdn Bhd 01.07.2001
2 Teoh Hock Chooi Fima Securities Sdn Bhd 04.07.2001
3 Hashimah bt Ismail Alor Setar Securities (2000) Sdn Bhd 20.08.2001
4 Dato' Hj Onn bin Mahmud Sarawak Securities Sdn Bhd 22.08.2001
5 Hajjah Shahnaz bt Abdul Majid Sarawak Securities Sdn Bhd 22.08.2001
6 Yap Kai Keng JB Securities Sdn Bhd 31.08.2001
7 Lim Tiong Chin A. A. Anthony & Co Sdn Bhd 03.09.2001
8 Ang Poo Guan Malpac Securities Sdn Bhd 17.09.2001
9 Husni bin Hussain South Johor Securities Sdn Bhd 17.09.2001
10 Richard Anthony Magides Rashid Hussain Securities Sdn Bhd 01.10.2001
38
Kuala Lumpur Stock Exchange
Membership R e p o r t
(5) Thirty-one individuals resigned/ceased as Dealing Members, viz: (Contd.)
No. Name Member Company Date ofResignation/Cessation
11 Too Hai Ong Botly Securities Sdn Bhd 13.10.2001
12 Saiful Bahri bin Zainuddin Fima Securities Sdn Bhd 31.10.2001
13 Freddie Chew Sun Ghee InnoSabah Securities Bhd 03.11.2001
14 Noor Zakri bin Abdul Ghani Sarawak Securities Sdn Bhd 26.11.2001
15 Abdul Wahab bin Nan Abidin Mayban Securities Sdn Bhd 30.11.2001
16 Er Chin Her @ Er Ee Peninsula Securities Sdn Bhd 03.12.2001
17 Ramli bin Mahmudin Pan Malaysia Equities Sdn Bhd 07.12.2001
18 Faidzan bin Hassan InnoSabah Securities Bhd 26.12.2001
19 Kong Kok Keong InnoSabah Securities Bhd 26.12.2001
20 To' Puan Siti Norizam bt Mohd Yusoff Affin-UOB Securities Sdn Bhd 31.12.2001
21 Abdul Molok bin Abdul Bakar Kin Khoon & Co. Sdn Bhd 04.02.2002
22 Sim Cheng Khuan Malacca Securities Sdn Bhd 22.05.2002
23 Lee Wai Kok HLG Securities Sdn Bhd 23.05.2002
24 Yong Yoong Fa PB Securities Sdn Bhd 01.06.2002
25 David Chua Ming Huat HLG Securities Sdn Bhd 07.06.2002
26 Mohd Yusof bin Mohd Rashidi Kuala Lumpur City Securities Sdn Bhd 19.07.2002
27 Abdul Rahman bin Ahmad A. A. Anthony & Co Sdn Bhd 26.08.2002
28 Abdul Rahman bin Abu Samah Kestrel Securities Sdn Bhd 16.09.2002
29 Ee Beng Guan Amsteel Securities (M) Sdn Bhd 11.11.2002
30 Tan Chong Pen Smith Zain Securities Sdn Bhd 16.12.2002
31 Tan Giap How Smith Zain Securities Sdn Bhd 16.12.2002
(6) Twenty-one individuals were admitted as Non-Dealing Members of the Exchange(Non-Executive Directors), viz:
No. Name Member Company Date ofAdmission
1 Badrul Feisal bin Abdul Rahim BBMB Securities Sdn Bhd 06.07.2001
2 Dato' Kalimullah bin Masheerul Hassan Botly Securities Sdn Bhd 22.08.2001
3 U Chin Wei Botly Securities Sdn Bhd 22.08.2001
4 Md. Agil bin Mohd Natt Mayban Securities Sdn Bhd 27.08.2001
5 Wong Pui Lam JB Securities Sdn Bhd 25.09.2001
6 Chuah Seong Phaik JB Securities Sdn Bhd 25.09.2001
7 Mohamed Azmi bin Mahmood Arab-Malaysian Securities Sdn Bhd 26.09.2001
8 Loy Tuan Bee OSK Securities Bhd 03.10.2001
9 Dato' Mohamed Tarmizi bin Mohd Tahir OSK Securities Bhd 03.10.2001
10 Andrew John Holland Smith Zain Securities Sdn Bhd 25.10.2001
11 Ab. Rahim bin Haron BBMB Securities Sdn Bhd 14.01.2002
12 Izlan bin Izhab Rashid Hussain Securities Sdn Bhd 08.02.2002
13 Raja Dato' Seri Abdul Aziz bin Raja Salim K & N Kenanga Bhd 08.02.2002
14 Albert Chan Huat Cheng K & N Kenanga Bhd 08.02.2002
15 Jeffri Salim Davidson K & N Kenanga Bhd 08.02.2002
16 Erdman Richard Georg Vogt K & N Kenanga Bhd 01.03.2002
17 Datuk Wira Mohamed Said bin Mohamed Ali MIDF Sisma Securities Sdn Bhd 26.03.2002
18 Yong Teck Ming SJ Securities Sdn Bhd 02.05.2002
19 Ong Eng Kooi Hwang-DBS Securities Bhd 03.06.2002
20 Abdul Rahim bin Awang Avenue Securities Sdn Bhd 24.06.2002
21 Alias bin Haji Ahmad M & A Securities Sdn Bhd 14.10.2002
39
Annual Repor t 2002
(7) Forty-one individuals resigned as Non-Dealing Members of the Exchange (Non-Executive Directors), viz:
No. Name Member Company Date ofResignation
1 Tan Sri Dato' Seri Dr. Abdul Upen Securities Sdn Bhd 09.07.2001Hamid bin Pawanteh
2 Arni bt Ariffin BBMB Securities Sdn Bhd 14.07.2001
3 Mohd Shukri bin Hussin CIMB Securities Sdn Bhd 15.07.2001
4 Lok Bah Bah @ Loh Yeow Boo Alor Setar Securities (2000) Sdn Bhd 20.08.2001
5 Haji Mahmud Abu Bekir Taib Sarawak Securities Sdn Bhd 22.08.2001
6 Hijjas Kasturi Sarawak Securities Sdn Bhd 22.08.2001
7 Dato' Ahmad Tajudin bin Abdul Rahman BIMB Securities Sdn Bhd 24.08.2001
8 Haji Mahfudz bin Muhamad Kota Bharu Securities Sdn Bhd 25.08.2001
9 Mustafa Haji Mohd Nor South Johor Securities Sdn Bhd 17.09.2001
10 Chang Tuck Chee South Johor Securities Sdn Bhd 17.09.2001
11 Lee Yew Kin South Johor Securities Sdn Bhd 17.09.2001
12 Zainab bt Ahmad Botly Securities Sdn Bhd 25.10.2001
13 Ausaf Akhtar Abbas Smith Zain Securities Sdn Bhd 25.10.2001
14 Nikmat bin Abdullah InnoSabah Securities Bhd 03.11.2001
15 Tan Sri Datuk Abdul Rahim bin Haji Din Inter-Pacific Securities Sdn Bhd 15.11.2001
16 Sulaiman Abdul Rahman Taib Sarawak Securities Sdn Bhd 26.11.2001
17 Datuk Khatijah bt Ahmad KAF-Seagroatt & Campbell Securities Sdn Bhd 30.11.2001
18 Faisol bin Zulkifli KAF-Seagroatt & Campbell Securities Sdn Bhd 30.11.2001
19 Datuk Philip Ling Lee Kang Peninsula Securities Sdn Bhd 03.12.2001
20 Datuk Mohd Yasin Jaafar Pan Malaysia Equities Sdn Bhd 07.12.2001
21 Khet Kok Yin Pan Malaysia Equities Sdn Bhd 07.12.2001
22 Dato' Seri Ting Chew Peh Pan Malaysia Equities Sdn Bhd 07.12.2001
23 Christopher Mark Quiton Rampton JF Apex Securities Bhd 20.12.2001
24 Ling Hee Keat UT Securities Sdn Bhd 03.01.2002
25 Andrew John Holland Smith Zain Securities Sdn Bhd 20.01.2002
26 Dato' Syed Ibrahim bin Syed Mohamed MIDF Sisma Securities Sdn Bhd 28.01.2002
27 Dato' Hamzah Zainuddin Kin Khoon & Co. Sdn Bhd 04.02.2002
28 Phillip Gong Chiok Sin Kin Khoon & Co. Sdn Bhd 04.02.2002
29 Tan Sri Tan Kok Ping SJ Securities Sdn Bhd 25.03.2002
30 Abu Hassan bin Kendut Fima Securities Sdn Bhd 17.04.2002
31 Nor Izmin bin Hasbullah Jupiter Securities Sdn Bhd 18.04.2002
32 Datuk Tay Ah Lek PB Securities Sdn Bhd 30.06.2002
33 Ruslan bin Hassan RHB Securities Sdn Bhd 01.07.2002
34 Lim Tiang Siew CIMB Securities Sdn Bhd 02.10.2002
35 Dato' Haji Mohd Noor bin Ismail Fima Securities Sdn Bhd 28.10.2002
36 Tan Sri Dato' Hj Basir bin Ismail Fima Securities Sdn Bhd 28.10.2002
37 Ahmad Riza Basir Fima Securities Sdn Bhd 28.10.2002
38 Raymond Lee Swee Kiat Affin-UOB Securities Sdn Bhd 01.11.2002
39 Dato' Haji Kamaruddin @ Abas Nordin Amsteel Securities (M) Sdn Bhd 11.11.2002
40 Khet Kok Yin PM Securities Sdn Bhd 21.11.2002
41 Dato' Kamaruddin bin Abu Smith Zain Securities Sdn Bhd 16.12.2002
40
Kuala Lumpur Stock Exchange
Membership R e p o r t
(8) Two individuals were admitted as Non-Dealing Members of the Exchange(Individual Shareholder), viz:
No. Name Member Company Date ofAdmission
1 Faidzan bin Hassan InnoSabah Securities Bhd 26.12.2001
2 Kong Kok Keong InnoSabah Securities Bhd 26.12.2001
(9) Twelve individuals resigned as Dealing Members of the Exchange (IndividualShareholder), viz:
No. Name Member Company Date ofResignation
1 Lim Tiong Chin A. A. Anthony & Co Sdn Bhd 30.08.2001
2 Abdul Rahman bin Ahmad A. A. Anthony & Co Sdn Bhd 30.08.2001
3 Lim Teong Khoon A. A. Anthony & Co Sdn Bhd 30.08.2001
4 Gan Teck Chong @ Gan Kwan Chong Malpac Securities Sdn Bhd 17.09.2001
5 Tan Chon Sing @ Tan Kim Tieng Malpac Securities Sdn Bhd 17.09.2001
6 Chew Loy Chee Malpac Securities Sdn Bhd 17.09.2001
7 Zulazman Amin bin Zulkifli ShareTech Securities Sdn Bhd 17.06.2002
8 Yeo Khee Aik Soon Theam Securities Sdn Bhd 02.09.2002
9 Ahmad bin Md Mydin Soon Theam Securities Sdn Bhd 02.09.2002
10 Yeo Khee Bee Soon Theam Securities Sdn Bhd 02.09.2002
11 Yeo Khee Nam Soon Theam Securities Sdn Bhd 02.09.2002
12 Dato' Haji Abdul Rahim bin Mohd Ibrahim Amsteel Securities (M) Sdn Bhd 11.11.2002
(10) Twelve individuals resigned as Non-Dealing Members of the Exchange (IndividualShareholder), viz:
No. Name Member Company Date ofResignation
1 Dato' Dr. Hj. Sallehuddin bin Kassim Alor Setar Securities (2000) Sdn Bhd 01.08.2001
2 Haji Mansor bin Hussin Alor Setar Securities (2000) Sdn Bhd 13.08.2001
3 Lim Pee Kee A. A. Anthony & Co. Sdn Bhd 30.08.2001
4 Dato' Lim Pee Hung A. A. Anthony & Co. Sdn Bhd 30.08.2001
5 Lim Pee Tong A. A. Anthony & Co. Sdn Bhd 30.08.2001
6 Yeo Eng Chew Soon Theam Securities Sdn Bhd 02.09.2002
7 Yeo Eng Ho Soon Theam Securities Sdn Bhd 02.09.2002
8 Yeo Eng Hai Soon Theam Securities Sdn Bhd 02.09.2002
9 Mohd Alkaf bin Mohd Kahar Kestrel Securities Sdn Bhd 16.09.2002
10 Abdul Rahman bin Dato' Mohd Hashim Kestrel Securities Sdn Bhd 16.09.2002
11 Affendi Zahari Kestrel Securities Sdn Bhd 16.09.2002
12 Sia Say Yee Amsteel Securities (M) Sdn Bhd 11.11.2002
(11) Changes to Member Companies' Names
No. Member Company New Name EffectiveDate
1 Arab-Malaysian Securities Sdn Bhd AmSecurities Sdn Bhd 14.06.2002
2 Allied Avenue Assets Securities Sdn Bhd Avenue Securities Sdn Bhd 22.07.2002
3 JB Securities Sdn Bhd A. A. Anthony Securities Sdn Bhd 26.08.2002
4 Rashid Hussain Securities Sdn Bhd RHB Securities Sdn Bhd 01.10.2002
41
Annual Repor t 2002
(12) Changes to Member Companies' Business Addresses
No. Member Company Business Address Effective Date
1 Allied Avenue Assets Securities Sdn Bhd Ground Floor & Level 1 03.09.2001THB SatuJalan Damansara EndahDamansara Heights50490 Kuala LumpurTel. No : 03-20951111Fax No : 03-20937733
2 Hwang-DBS Securities Bhd Level 7, Johor Bahru City Square (Office Tower) 29.10.2001(Johor Bahru Branch) No. 106-108, Jalan Wong Ah Fook
80000 Johor BahruJohor Darul TakzimTel. No : 07-2222692 & 2768787Fax No : 07-2765201
3 Leong & Company Sdn Bhd Level 18 & 19 Wisma Cyclecarri 01.07.2002288 Jalan Raja Laut50350 Kuala LumpurTel. No : 03-26928899Fax No : 03-26949088
4 JF Apex Securities Bhd 3rd, 5th, 6th and 10th Floor 22.07.2002Menara Apex Off Jalan SemenyihBukit Mewah43000 KajangSelangor Darul EhsanTel. No : 03-87361118Fax No : 03-87374532
5 Thong & Kay Hian Securities Sdn Bhd Wisma Sri Pinang 22.07.2002Level 5 & 6, 60 Green Hall andLevel 4, Mutiara I & PNo. 47, Green Hall10200 PenangTel. No : 04-2635481Fax No : 04-2635741
6 Avenue Securities Sdn Bhd No. 63, Persiaran Greenhill 05.08.2002(Ipoh Branch) 30450 Ipoh
Perak Darul RidzuanTel. No : 05-2422828Fax No : 05-2422323
7 Inter-Pacific Securities Sdn Bhd Tingkat 6 - 8 dan 11 09.09.2002Menara PrimeNo. 30, Jalan Sultan Ismail50250 Kuala LumpurTel. No : 03-21441888Fax No : 03-21441686
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA)
No. Member Company Business Address Effective Date
1 Kuala Lumpur City Securities Sdn Bhd 2nd Floor, Podium Block 09.07.2001(Kangar Branch) Bangunan KWSP
01000 KangarPerlisTel. No : 04-9765200Fax No : 04-9760411
2 Hwang-DBS Securities Bhd Tingkat Bawah, 1, 2 & 3 23.07.2001(Kuching Branch) Lot 328 Jalan Abell
93100 KuchingSarawakTel. No : 082-236999Fax No : 082-426999
42
Kuala Lumpur Stock Exchange
Membership R e p o r t
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
3 OSK Securities Bhd Level 19, NB Tower 30.07.2001(Butterworth Branch) 5050, Jalan Bagan Luar
12000 ButterworthPenangTel. No : 04-3322299Fax No : 04-3328011
4 Hwang-DBS Securities Bhd 1620 & 1621, Jalan Permatang Batu 06.08.2001(Bukit Mertajam Branch) Taman Industri Permatang Batu
14000 Bukit MertajamPenangTel. No : 04-5372882Fax No : 04-5375228
5 Kuala Lumpur City Securities Sdn Bhd 2nd Floor, Wisma PKNK 20.08.2001(Alor Setar Branch) Jalan Sultan Badlishah
05000 Alor SetarKedah Darul AmanTel. No : 04-7317088 / 7318270Fax No : 04-7318428
6 OSK Securities Bhd Unit 27-01 to 08, Level 27 20.08.2001(Johor Bahru Branch) Menara Landmark
No. 12, Jalan Ngee Heng80000 Johor BahruJohor Darul TakzimTel. No : 07-2212233Fax No : 07-2215388
7 Arab-Malaysian Securities Sdn Bhd 2nd, 3rd & 4th Floor, Penggaram Complex 17.09.2001(Batu Pahat Branch) 1 Jalan Abdul Rahman
83000 Batu PahatJohor Darul TakzimTel. No : 07-4342282 / 4317033Fax No : 07-4327982 / 4316755
8 PM Securities Sdn Bhd 1st, 2nd & 3rd Floor 17.09.2001(Seremban Branch) 19, 20 and 21, Jalan Kong Sang
70000 SerembanNegeri Sembilan Darul KhususTel. No : 06-7623131Fax No : 06-7623877
9 PM Securities Sdn Bhd Nos. 157 & 159, Jalan Kenari 23A 01.10.2001(Puchong Branch) Bandar Puchong Jaya
47100 PuchongSelangor Darul EhsanTel. No : 03-80700773Fax No : 03-80762581
10 Hwang-DBS Securities Bhd Ground & 1st Floor 01.10.2001(Seremban Branch) 105, 107 & 109, Jalan Yam Tuan
70000 SerembanNegeri Sembilan Darul KhususTel. No : 06-7612288Fax No : 06-7614228
11 Kuala Lumpur City Securities Sdn Bhd Suite 1-9-E1, 9th Floor, CPS Tower 08.10.2001(Kota Kinabalu Branch) No. 1, Jalan Centre Point
88000 Kota KinabaluSabahTel. No : 088-253922Fax No : 088-261010
43
Annual Repor t 2002
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
12 Kuala Lumpur City Securities Sdn Bhd No. 46 & 48, Jalan Dato' Kapten Ahmad 15.10.2001(Kluang Branch) 86000 Kluang
Johor Darul TakzimTel. No : 07-7717922Fax No : 07-7717907
13 K & N Kenanga Bhd Level 1-5, Wisma Mahmud 26.11.2001(Kuching Branch) Jalan Sungai Sarawak
93100 KuchingSarawakTel. No : 082-338000Fax No : 082-338222
14 K & N Kenanga Bhd Lot 2465, Jalan Boulevard Utama 26.11.2001(Miri Branch) Boulevard Commercial Centre
98000 MiriSarawakTel. No : 085-435577Fax No : 085-435511
15 K & N Kenanga Bhd Level 2, Menara Pelangi 03.12.2001(Johor Bahru Branch) Jalan Kuning
Taman Pelangi80400 Johor BahruJohor Darul TakzimTel. No : 07-3333600Fax No : 07-3340499
16 OSK Securities Bhd A-27 & A-29, Lorong Tun Ismail 9 03.12.2001(Kuantan Branch) Sri Dagangan Kuantan Business Centre
25000 KuantanPahang Darul MakmurTel. No : 09-5163811Fax No : 09-5163911
17 OSK Securities Bhd Ground & 1st Floor, Wisma Chinese Chambers 10.12.2001(Kuching Branch) Lot 357, Section 47, K.T.L.D
Jalan Bukit Mata Kuching93100 KuchingSarawakTel. No : 082-422252Fax No : 082-240955
18 Hwang-DBS Securities Bhd Room Nos. 106-109, Mezzanine Floor 14.12.2001(Kota Kinabalu Branch) Room Nos. 207-212, Second Floor
Gaya CentreJalan Tun Fuad Stephens88400 Kota KinabaluSabahTel. No : 088-311688Fax No : 088-318996
19 K & N Kenanga Bhd Room 9.01, 9th Floor & Room 13.01, 13th Floor 24.12.2001(Petaling Jaya Branch) Menara Yayasan Selangor
No. 18A, Jalan Persiaran BaratOff Jalan Timur46000 Petaling JayaSelangor Darul EhsanTel. No : 03-79562169Fax No : 03-79562549
20 K & N Kenanga Bhd 1st Floor, Wisma UEP 24.12.2001(Subang USJ Branch) Pusat Perniagaan USJ 10
Jalan USJ 10/1A47620 Subang JayaSelangor Darul EhsanTel. No : 03-80241682
44
Kuala Lumpur Stock Exchange
Membership R e p o r t
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
21 K & N Kenanga Bhd Suite 7.02 Level 7, Menara ING 14.01.2002(Klang Branch) Intan Millenium Square
No. 68, Jalan Batai Laut 4Taman Intan41300 KlangSelangor Darul EhsanTel. No : 03-30057550 / 33451800Fax No : 03-33451788
22 Allied Avenue Assets Securities Sdn Bhd A23-A29, Wisma Kota Emas 04.02.2002(Ipoh Branch) Jalan Dato' Tahwil Azar
30300 IpohPerak Darul RidzuanTel, No : 05-2422828Fax No : 05-2422323
23 Hwang-DBS Securities Bhd Tingkat 2, Bangunan AHP 18.02.2002(TTDI, Kuala Lumpur Branch) No. 2, Jalan Tun Mohd Fuad 3
Taman Tun Dr Ismail60000 Kuala LumpurTel. No : 03-77106688Fax No : 03-77106699
24 PM Securities Sdn Bhd Level 25, Menara BHL 06.03.2002(Penang Branch) 51 Jalan Sultan Ahmad Shah
10050 Pulau PinangTel. No : 04-2273000Fax No : 04-2279000
25 OSK Securities Bhd 53, 53-A and 53-B 18.03.2002(Batu Pahat Branch) Jalan Sultanah
83000 Batu PahatJohor Darul TakzimTel. No : 07-4380288Fax No : 07-4380277
26 PM Securities Sdn Bhd Bilik 5.01 Aras 5 18.03.2002(Johor Bahru Branch) Menara Pelangi
Jalan KuningTaman Pelangi80400 Johor BahruJohor Darul TakzimTel. No : 07-2781813Fax No : 07-2781853
27 OSK Securities Bhd Tingkat 5, Wisma BSN Sabah 08.04.2002(Kota Kinabalu Branch) Jalan Kemajuan
Karamunsing88000 Kota KinabaluSabahTel. No : 088-269788Fax No : 088-260910
28 OSK Securities Bhd 24, 24M, 26M, 28M & 28A 20.05.2002(SS2, Petaling Jaya Branch) Jalan SS2/63
47300 Petaling JayaSelangor Darul EhsanTel. No : 03-78736366Fax No : 03-78736566
29 Hwang-DBS Securities Bhd East Wing & Centre Link 20.05.2002(Subang Jaya Branch) Tingkat 3A, Wisma Consplant 2
No. 7, Jalan SS16/147500 Subang JayaSelangor Darul EhsanTel. No : 03-56356688Fax No : 03-56362288
45
Annual Repor t 2002
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
30 PM Securities Sdn Bhd No. 11 & 13, Jalan PM2 20.05.2002(Melaka Branch) Plaza Mahkota
75000 MelakaTel. No : 06-2866008Fax No : 06-2866018
31 PM Securities Sdn Bhd No. 18 & 20, Jalan Tiara 2 30.05.2002(Klang Branch) Bandar Baru Klang
41150 KlangSelangor Darul EhsanTel. No : 03-33415300Fax No : 03-33415551
32 CIMB Securities Sdn Bhd Unit 7A, Level 7 17.06.2002(Labuan Branch) Financial Park Complex
Jalan Merdeka87000 Wilayah Persekutuan LabuanTel. No : 087-451666Fax No : 087-452666
33 OSK Securities Bhd Lot 1168 Tingkat Bawah 15.07.2002(Miri Branch) Wisma Interhill
Miri Waterfront Commercial Centre98008 MiriSarawakTel. No : 085-422788Fax No : 085-410822
34 OSK Securities Bhd 101 & 102 Pusat Pedada 17.07.2002(Sibu Branch) Jalan Pedada
96000 SibuSarawakTel. No : 084-329100Fax No : 084-334100
35 Hwang-DBS Securities Bhd No. 70 A, B, C 29.07.2002(Sungai Petani Branch) Jalan Mawar 1
Taman Pekan Baru08000 Sungai PetaniKedah Darul AmanTel. No : 04-4256666Fax No : 04-4212288
36 K & N Kenanga Bhd No. 31 Lorong Dato' Ahmad 05.08.2002(Muar Branch) Jalan Khalidi
84000 MuarJohor Darul TakzimTel. No : 06-9542711 & 9542721Fax No : 06-9528272
37 Kuala Lumpur City Securities Sdn Bhd Lot 6 & 7, Sections 25 19.08.2002(Kota Bharu EAF-PA) Jalan Sultan Yahya Petra
Bandar Kota Bahru15200Kelantan Darul Naim
38 A. A. Anthony Securities Sdn Bhd No. 41-1-1 & 41-2-1 26.08.2002(Penang Branch) Jalan Cantonment
10250 PenangTel. No : 04-2299318Fax No : 04-2268788
46
Kuala Lumpur Stock Exchange
Membership R e p o r t
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
39 Avenue Securities Sdn Bhd 111 Jalan Macalister 02.09.2002(Penang Branch) 10400 Penang
Tel. No : 04-2281868Fax No : 04-2263912
40 Hwang-DBS Securities Bhd No. 34-5, 36-5, 38-5, 40-5, 42-5 dan 44-5 09.09.2002(Cheras Branch) Tingkat 5, Cheras Commercial Centre
Jalan 5/101COff Jalan KaskasBatu 5 Cheras56100 Kuala LumpurTel. No : 03-91303399Fax No : 03-91302299
41 Kuala Lumpur City Securities Sdn Bhd No. 43 & 44 09.09.2002(Sitiawan EAF-PA) Tingkat Bawah
Taman SentosaJalan Lumut32000 SitiawanPerak Darul Ridzuan
42 Avenue Securities Sdn Bhd 57, 59 & 61, Jalan Ali 16.09.2002(Muar Branch) 84000 Muar
Johor Darul TakzimTel. No : 06-9531222Fax No : 06-9516660
43 OSK Securities Bhd Tingkat Bawah 30.09.2002(Teluk Intan EAF-PA) No. 17, Jalan Intan 2
Bandar Baru36000 Teluk IntanPerak Darul Ridzuan
44 OSK Securities Bhd Tingkat Bawah dan Tingkat Atas 30.09.2002(Bukit Mertajam EAF-PA) No. 11A, Jalan Keranji
Off Jalan Padang Lallang14000 Bukit MertajamPenang
45 K & N Kenanga Bhd Tingkat Bawah dan Tingkat Mezzanine 10.10.2002(Segamat EAF-PA) No. 34, Jalan Genuang
85000 SegamatJohor Darul Takzim
46 OSK Securities Bhd Tingkat Satu 21.10.2002(Sitiawan EAF-PA) No. 23 & 25
Jalan Lumut32000 SitiawanPerak Darul Ridzuan
47 OSK Securities Bhd Tingkat Bawah Swiss Inn Hotel 21.10.2002(Sungai Petani EAF-PA) 1, Jalan Pahlawan
08000 Sungai PetaniKedah Darul Aman
48 Hwang-DBS Securities Bhd No. 6, Tingkat Atas 21.10.2002(Bahau EAF-PA) Jalan Mahligai
72100 BahauNegeri Sembilan Darul Khusus
49 M & A Securities Sdn Bhd Aras G-2 28.10.2002(Kuala Lumpur Branch) No. 45 & 47
The BoulevardBandar Mid ValleyLingkaran Syed Putra59200 Kuala LumpurTel. No : 03-22821820Fax No : 03-22831019
47
Annual Repor t 2002
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
50 OSK Securities Bhd Tingkat Bawah 28.10.2002(Bagan Serai EAF-PA) 28, Jalan Maharaja
Taman Bagan Serai Baru34300 Bagan SeraiPerak Darul Ridzuan
51 OSK Securities Bhd 35, Tingkat Bawah 28.10.2002(Kulim EAF-PA) Jalan Suria 1
Jalan Bayu09000 Kulim Kedah Darul Aman
52 OSK Securities Bhd No. 3953-H, Tingkat Bawah & Tingkat Satu 28.10.2002(Kota Bharu EAF-PA) Jalan Kebun Sultan
15350 Kota BharuKelantan Darul Naim
53 K & N Kenanga Bhd 33 & 35 (Tingkat Bawah dan Tingkat Satu A & B) 05.11.2002(Kluang EAF-PA) Jalan Syed Abdul Hamid Sagaff
86000 KluangJohor Darul Takzim
54 Affin-UOB Securities Sdn Bhd Tingkat 2, 3 & 4 11.11.2002(Klang Branch) Wisma Amsteel Securities
No. 1, Lintang Pekan BaruOff Jalan Meru41050 KlangSelangor Darul EhsanTel. No : 03-33439999Fax No : 03-33433872
55 OSK Securities Bhd Tingkat Bawah & Tingkat Satu 11.11.2002(Alor Setar EAF-PA) 215-A & 215-B Medan Putra
Jalan Putra05150 Alor SetarKedah Darul Aman
56 OSK Securities Bhd Tingkat Bawah 11.11.2002(Bentong EAF-PA) 98 Jalan Pasdec
28700 BentongPahang Darul Makmur
57 OSK Securities Bhd Tingkat Bawah 11.11.2002(Pontian EAF-PA) 17, Jalan Delima
Pusat Perdagangan Pontian82000 PontianJohor Darul Takzim
58 Kuala Lumpur City Securities Sdn Bhd No. 1-D, Tingkat Bawah & Mezzanine 18.11.2002(Kuala Terengganu EAF-PA) No. 1E, Tingkat Bawah, Mezzanine, Tingkat Satu & Dua
Jalan Air Jernih20300 Kuala TerengganuTerengganu Darul Iman
59 OSK Securities Bhd Tingkat Bawah, Tingkat Satu & Tingkat Dua 18.11.2002(Seremban EAF-PA) No. 33, Jalan Dato' Bandar Tunggal
70000 SerembanNegeri Sembilan Darul Khusus
48
Kuala Lumpur Stock Exchange
Membership R e p o r t
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
60 OSK Securities Bhd Tingkat Bawah & Tingkat Satu 18.11.2002(Muar EAF-PA) No. 19, Jalan Pesta 1-1
Taman Tun Dr. Ismail 1Jalan Bakri84000 MuarJohor Darul Takzim
61 OSK Securities Bhd Tingkat Bawah 18.11.2002(Mentakab EAF-PA) No. 43 Jalan Bunga Tanjung
28400 MentakabPahang Darul Makmur
62 OSK Securities Bhd Tingkat Bawah 18.11.2002(Kemaman EAF-PA) 9651, Cukai Utama
Jalan Kubang Kurus24000 KemamanTerengganu Darul Iman
63 OSK Securities Bhd Tingkat Bawah 18.11.2002(Kepong EAF-PA) No. 15, Block A
Jalan Prima 1Pusat Niaga Metro Prima52100 Kuala Lumpur
64 OSK Securities Bhd Tingkat Bawah & Tingkat Satu 18.11.2002(Tun Aminah EAF-PA) 10, Jalan Bendahara 12
Taman Ungku Tun Aminah81300 SkudaiJohor Darul Takzim
65 OSK Securities Bhd Tingkat Bawah & Tingkat Satu 25.11.2002(Segamat EAF-PA) No. 28, Jalan Tengku Ahmad
85000 SegamatJohor Darul Takzim
66 OSK Securities Bhd Tingkat Bawah, Tingkat Satu & Tingkat Dua 25.11.2002(Kluang EAF-PA) No. 17, Jalan Manggis
86000 KluangJohor Darul Takzim
67 OSK Securities Bhd 240 & 240A 02.12.2002(Yong Peng EAF-PA) Jalan Besar
83700 Yong PengJohor Darul Takzim
68 OSK Securities Bhd 834, Jalan Besar 02.12.2002(Sungai Bakap EAF-PA) Sungai Bakap
14200 Sungai JawiSPS, Penang
69 OSK Securities Bhd Tingkat Bawah 16.12.2002(Taiping EAF-PA) No. 40, 42 & 44
Jalan Berek34000 TaipingPerak Darul Ridzuan
70 OSK Securities Bhd Tingkat Bawah, Tingkat Satu & Tingkat Dua 16.12.2002(Kulai EAF-PA) No. 10, Jalan Anggerik 1
Taman Kulai Utama81000 KulaiJohor Darul Takzim
71 OSK Securities Bhd Tingkat Bawah 16.12.2002(Kota Tinggi EAF-PA) No. 7, Jalan Jaya
81900 Kota TinggiJohor Darul Takzim
49
Annual Repor t 2002
(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)
No. Member Company Business Address Effective Date
72 OSK Securities Bhd Tingkat Satu 16.12.2002(Tampin EAF-PA) No. 3601, Jalan Besar
73000 TampinNegeri Sembilan Darul Khusus
73 OSK Securities Bhd Tingkat Bawah, Tingkat Satu & Tingkat Dua 16.12.2002(Tangkak EAF-PA) No. 343, Jalan Muar
84900 TangkakJohor Darul Takzim
74 OSK Securities Bhd Tingkat Satu 16.12.2002(Labis EAF-PA) No. 2 & 4, Jalan Makmur
Taman Sri Aman85300 LabisJohor Darul Takzim
75 OSK Securities Bhd Tingkat Satu & Tingkat Dua 16.12.2002(Bahau EAF-PA) No. 168, Jalan Mewah
(Pusat Perniagaan UMNO Bahagian Jempol)72100 BahauNegeri Sembilan Darul Khusus
76 BBMB Securities Sdn Bhd Tingkat 7 & 8, Menara PSCI 16.12.2002(Penang Branch) 39, Jalan Sultan Ahmad Shah
10050 PenangTel. No : 04-2283355Fax No : 04-2299513
77 OSK Securities Bhd Tingkat Bawah 30.12.2002(Cameron Highlands EAF-PA) No. 76-A, Persiaran Camelia 4
Tanah Rata39000 Cameron HighlandsPahang Darul Makmur
50
Kuala Lumpur Stock Exchange
KLSE Members (Principal Offices) as at 31 December 2002
VOTING MEMBERS FEDERAL TERRITORY OF KUALA LUMPUR
AMSECURITIES 15th Floor Dealing Members: Non-Dealing Members:SDN BHD Bangunan AmBank Group 1. Haji Ismail bin Abdullah 1. AmSecurities Holdings Sdn Bhd
55 Jalan Raja Chulan 2. Mustafa bin Hj Mohd Nor 2. Dato' Hj Azlan Hashim50200 Kuala Lumpur 3. Chang Tuck Chee @ 3. Cheah Tek KuangTelephone : 03-20782788/99 Philip Chang 4. Lee Siang Korn @ Lee Siang ChinFacsimile : 03-20783162 4. Ahmad bin Bachok 5. Mohamed Azmi bin Mahmood
AFFIN-UOB Level 3, Menara Keck Seng Dealing Member: Non-Dealing Members:SECURITIES 203 Jalan Bukit Bintang 1. Saiful Bahri bin Zainuddin 1. Affin-UOB Holdings Sdn BhdSDN BHD 55100 Kuala Lumpur 2. Yu Choong Cheong
Telephone : 03-21438668 3. Gen (B) Dato' Ismail HassanFacsimile : 03-21433663
AVENUE Ground Floor & Level 1, THB Satu Dealing Members: Non-Dealing Members:SECURITIES Jalan Damansara Endah 1. Wee Hoe Soon @ 1. Avenue Assets Bhd SDN BHD Damansara Heights Gooi Hoe Soon 2. Abdul Rahim bin Awang
50490 Kuala Lumpur 2. Abdul Rauf bin RamliTelephone : 03-20951111 3. Ooi Hun PinFacsimile : 03-20937733 4. Yeo Khee Nam
BBMB SECURITIES Level 2, 3, 4 & 15 Dealing Members: Non-Dealing Members:SDN BHD Menara Olympia 1. Hassan bin Jaafar 1. Khazanah Nasional Bhd
Letter Box No. 2 2. Rashidan Shah bin Abdul 2. Nik Hassan bin Nik Mohd AminNo. 8 Jalan Raja Chulan Rahim 3. Dato' Anwar bin Haji @ Aji50200 Kuala Lumpur 4. Othman bin Abdul JalalTelephone : 03-20319900 5. Badrul Feisal bin Abdul RahimFacsimile : 03-20341582 6. Ab. Rahim bin Haron
BIMB SECURITIES 1st & 2nd Floor, Dealing Member: Non-Dealing Members:SDN BHD Podium Block, Bangunan AMDB 1. Dato' Dr Abdul Halim 1. BIMB Securities
No. 1, Jalan Lumut bin Haji Ismail (Holdings) Sdn Bhd50400 Kuala Lumpur 2. Permodalan Nasional Berhad Telephone : 03-40433533 3. Dato' Hj Mohamed bin ShafieFacsimile : 03-40413433/2622/ 4. Mustafa bin Hamat
40414159
CIMB SECURITIES 9th Floor, Commerce Square Dealing Member: Non-Dealing Members:SDN BHD Jalan Semantan 1. Yusli bin Mohamed Yusoff 1. CIMB Holdings Sdn Bhd
Damansara Heights 2. Mohamed Nazir bin Abd Razak50490 Kuala Lumpur 3. Robert Chiem Dau MengTelephone : 03-20932288 4. Dato' Halim bin MuhamatFacsimile : 03-20935533
HLG SECURITIES Level 1-7, Menara HLA Dealing Members: Non-Dealing Member:SDN BHD No. 3, Jalan Kia Peng 1. Omar bin Zolkifli 1. HLG Capital Bhd
50450 Kuala Lumpur 2. Alewi bin AriffinTelephone : 03-21681168/
27101168Facsimile : 03-21615900
INTER-PACIFIC Tingkat 6-8 dan 11 Dealing Members: Non-Dealing Members:SECURITIES Menara Prime 1. Pang Poh Ping 1. Inter-Pacific Capital Sdn BhdSDN BHD No. 30, Jalan Sultan Ismail 2. Abdul Majid bin 2. Chan Kien Sing
50250 Kuala Lumpur Hj Mohd Harun 3. Robert Yong Kuen LokeTelephone : 03-21441888 4. Datuk Hj Mohd Fatmi binFacsimile : 03-21441686 Hj Che Salleh
51
Annual Repor t 2002
VOTING MEMBERS FEDERAL TERRITORY OF KUALA LUMPUR
JUPITER 7th, 8th & 9th Floor Dealing Members: Non-Dealing Members:SECURITIES Menara Olympia 1. Mohd Saleh bin Md Yusof 1. Olympia Industries BhdSDN BHD 8 Jalan Raja Chulan 2. Lo Kok Kee 2. Koperasi Polis Di Raja Malaysia Bhd
50200 Kuala Lumpur 3. Johari bin Hassan 3. Looi Kheng HwaTelephone : 03-20341888 4. Ishak bin Hassan Facsimile : 03-20342288 5. Zahar Hj Ariffin
6. Yap Wee Keat7. Tun Dato' Seri Abdul Hamid Omar8. Mohamed Azahari bin
Mohamed Kamil
K & N 801, 8th Floor Dealing Members: Non-Dealing Members:KENANGA BHD Kenanga International 1. Tengku Dato' Paduka Noor 1. K & N Kenanga Holdings Bhd
Jalan Sultan Ismail Zakiah binti Tengku Ismail 2. Raja Dato' Seri Abdul Aziz50250 Kuala Lumpur 2. Haji Abdul Aziz bin Hashim bin Raja SalimTelephone : 03-21649080/ 3. Dato' Ramli bin Ismail 3. Albert Chan Huat Cheng
21624190 4. Jeffri Salim DavidsonFacsimile : 03-21614990/ 5. Erdman Richard Georg Vogt
21635927
KAF-SEAGROATT 30th Floor, The Weld Tower Dealing Member: Non-Dealing Member:& CAMPBELL 76, Jalan Raja Chulan 1. Ahmad bin Kadis 1. KAF-Seagroatt & Campbell BhdSECURITIES 50200 Kuala LumpurSDN BHD Telephone: 03-20201600
Facsimile : 03-20723464
KUALA LUMPUR No. 8, Jalan Binjai Dealing Member: Non-Dealing Members:CITY SECURITIES Off Jalan Ampang 1. Hashimah bt Ismail 1. Assedina Sdn BhdSDN BHD 50450 Kuala Lumpur 2. Khadijah bt Abdul Khalid
Telephone : 03-21667922Facsimile : 03-21667909
LEONG & CO Level 18 & 19, Wisma Cyclecarri Dealing Members: Non-Dealing Members:SDN BHD 288 Jalan Raja Laut 1. Leong Kun Kay 1. Ceria Alam Sdn Bhd
50350 Kuala Lumpur 2. Anne Leong Sau Leng 2. Edaran Otomobil Nasional BhdTelephone : 03-26928899 3. Christine Leong Yuen Leng 3. Musa bin Haji Mohd DahanFacsimile : 03-26949088 4. Peter Leong Tuck Leng
5. Maggie Yu Kwei Sim6. Fauzi Hj Omar
MAYBAN Tingkat 5-13, MaybanLife Tower Dealing Member: Non-Dealing Members:SECURITIES Dataran Maybank 1. Hamzah bin Mahmood 1. Mayban Securities (Holdings) Sdn BhdSDN BHD No. 1, Jalan Maarof 2. Dato' Mohamed Basir bin Ahmad
59000 Kuala Lumpur 3. Mohammad bin AbdullahTelephone : 03-22978888 4. Hj Mohd Hashir Hj AbdullahFacsimile : 03-22825136 5. Dato' Ahmad Badri bin Mohd Basir
6. Dato' Mohammed bin Hj Che Hussein
7. Dato' Mohd Hilmey bin Mohd Taib8. Md Agil bin Mohd Natt
MIDF SISMA 17th & 18th Floor, Empire Tower Dealing Member: Non-Dealing Members:SECURITIES 182, Jalan Tun Razak 1. Datin Mariam bte Yusof 1. MIDF Sisma Holdings Sdn BhdSDN BHD 50400 Kuala Lumpur 2. Dato' Mohd Ghaus bin
Telephone : 03-21668888 Badioze ZamanFacsimile : 03-21669999 3. Allen N Lopez
4. Datuk Dr Abdul Azizbin Muhamad
5. Hj Mohd Sallehuddin bin Othman6. Datuk Wira Mohamed Said
bin Mohamed Ali
52
Kuala Lumpur Stock Exchange
VOTING MEMBERS FEDERAL TERRITORY OF KUALA LUMPUR
OSK SECURITIES 10th Floor, Plaza OSK Dealing Members: Non-Dealing Members:BHD Jalan Ampang 1. Dato' Nik Mohamed 1. OSK Holdings Bhd
50450 Kuala Lumpur bin Nik Yahya 2. Loy Tuan BeeTelephone : 03-21624388 2. Chin Cheng Mei 3. Dato' Mohamed Tarmizi binFacsimile : 03-21618254 3. Wong Chong Kim Mohd Tahir
4. Ong Leong Huat @ Wong Joo Hwa
5. Nik Halim @ Nik Ghazi b Haji Nik Daud
6. Mohd Idris bin Ahmad Jais
PB SECURITIES 27th Floor, Bangunan Public Bank Dealing Member: Non-Dealing Members:SDN BHD No. 6 Jalan Sultan Sulaiman 1. Teoh Cheng Soon 1. Public Consolidated
50000 Kuala Lumpur 2. Tan Sri Dato' Dr Teh Hong PiowTelephone : 03-20313011 Holdings Sdn BhdFacsimile : 03-20312533 3. Dato' Lee Kong Lam
4. Ismail Ibrahim5. Zulkifli Mohd Ali
PM SECURITIES Tingkat Bawah & Tingkat 1 Dealing Members: Non-Dealing Members:SDN BHD Plaza MUI 1. Noorjehan Rahima bt 1. PM Asset Management Sdn Bhd
Jalan P. Ramlee Abdul Hamid Jumat 2. Datin Munirah binti Abdullah Ng50250 Kuala Lumpur 2. Leong Kok Wah 3. Dato' Abdul Raman bin SulimanTelephone : 03-21463000 3. Ramli bin Mahmudin 4. Zainal Rashid bin Zainal AbidinFacsimile : 03-21456345 5. Khoo Bee Lin
6. Dato Seri Ting Chew Peh
RHB Level 9, Tower One Dealing Members: Non-Dealing Members:SECURITIES RHB Centre 1. Tan Sri Dato' Abdul 1. RHB Sakura Merchant SDN BHD Jalan Tun Razak Rashid bin Haji Bankers Bhd
50400 Kuala Lumpur Mohamed Hussain 2. Datuk Oh Chong PengTelephone : 03-92852233 2. Hj Tajul Ariffin bin Mohd Tahir 3. Izlan bin IzhabFacsimile : 03-92855522 3. Junaida bt Abdul Jalal
SIMESECURITIES 21st Floor, Bangunan Sime Bank Dealing Member: Non-Dealing Members:SDN BHD 4, Jalan Sultan Sulaiman No appointment as at 1. SimeSecurities
50000 Kuala Lumpur 30.6.2000 Holdings Sdn BhdTelephone : 03-22749288/778 2. Dr Shafiq Sit AbdullahFacsimile : 03-22749907 3. Nik Din Nik Sulaiman
4. Tunku Tan Sri Dato' SeriAhmad bin Tunku Yahya
5. Thavarajah a/l Chinniah
TA Menara TA One Dealing Members: Non-Dealing Members:SECURITIES BHD 22, Jalan P Ramlee 1. Datin Tan Kuay Fong 1. TA Enterprise Bhd
50250 Kuala Lumpur 2. Ignatius Luke Jr. Tan 2. Dato' Kalimullah bin Telephone : 03-20721277 Keng Hee Masheerul HassanFacsimile : 03-20316608 3. Attan Akmar Masbah 3. U Chin Wei
VOTING MEMBER SELANGOR DARUL EHSAN - KAJANG
JF APEX 3rd, 5th, 6th & 10th Floor Dealing Members: Non-Dealing Members:SECURITIES BHD Menara Apex, Off Jalan Semenyih 1. Chan Guan Seng 1. Apex Equity Holdings Bhd
Bukit Mewah 2. Ng Seng Leong 2. J.P. Morgan Services 43000 Kajang 3. Kharul Hurri bin Khalid (M) Sdn BhdSelangor Darul Ehsan AbbasTelephone : 03-87361118 Facsimile : 03-87374532
KLSE Members (Principal Offices) as at 31 December 2002
53
Annual Repor t 2002
VOTING MEMBER SELANGOR DARUL EHSAN - PETALING JAYA
MOHAIYANI 1st, 2nd & 3rd Floor Dealing Members: Non-Dealing Members:SECURITIES Plaza Damansara Utama 1. Datuk Mohaiyani bt 1. ParibasSDN BHD No. 2 Jalan SS21/60, Shamsudin 2. Christian Georges Henri
Damansara Utama 2. Abdul Hamid bin Gautier De Charnace47400 Petaling Jaya Abdul Samad 3. Abdul Ghani bin AhmadSelangor Darul Ehsan 3. Nik Aminaldin bin 4. Adam Ghani Ahmad bin Telephone : 03-77297345 Nik Jaafar Abdul GhaniFacsimile : 03-77281357 4. Chin Kok Keng 5. Amir Ghani Ahmad bin
Abdul Ghani
VOTING MEMBER SELANGOR DARUL EHSAN - SUBANG JAYA
SJ SECURITIES Level 3, Holiday Villa Dealing Members: Non-Dealing Members:SDN BHD No 9, Jalan SS12/1 1. Ahmad Azman bin 1. Carta Bintang Sdn Bhd
47500 Subang Jaya Abdul Manaf 2. Dato' Ahmad Sebi BakarSelangor Darul Ehsan 2. Lim Poh Ho 3. Yong Teck MingTelephone : 03-56340202Facsimile : 03-56348342
VOTING MEMBERS JOHOR DARUL TAKZIM
ENG SECURITIES 95, Jalan Tun Abdul Razak Dealing Member: Non-Dealing Members:SDN BHD 80000 Johor Bahru 1. Lim Khuan Eng 1. Inter-Pacific Capital Sdn Bhd
Johor Darul Takzim 2. Datuk Hj Mohd Fatmi binTelephone : 07-2231211/8212 Hj Che SallehFacsimile : 07-2246266 3. Azlan Meah bin Hj Ahmad Meah
4. Chan Kien Sing5. Robert Yong Kuen Loke
A.A. ANTHONY Suite 8.2 Level 8 Dealing Members: Non-Dealing Members:SECURITIES Menara Sarawak Enterprise 1. Idris bin Osman 1. Dynamic Pearl Sdn BhdSDN BHD No. 5 Jalan Bukit Meldrum 2. Loong Sze Tung 2. Wong Pui Lam
80300 Johor Bahru 3. Lim Tiong Chin 3. Chuah Seong PhaikJohor Darul Takzim 4. Abdul Rahman bin AhmadTelephone : 07-3332000Facsimile : 07-3348259
VOTING MEMBER KELANTAN DARUL NAIM
KOTA BHARU 298 Jalan Tok Hakim Dealing Member: Non-Dealing Members:SECURITIES 15000 Kota Bharu 1. Mohamad bin Ab Aziz 1. Pakatan Canggih Sdn BhdSDN BHD Kelantan Darul Naim 2. Mohd Faiz bin Abdullah
Telephone : 09-7432288 3. Chan Gak KeongFacsimile : 09-7485366 4. Wong Hong Meng
VOTING MEMBERS MELAKA
MALACCA No. 1,3 & 5, Jalan PPM 9 Dealing Member: Non-Dealing Members:SECURITIES Plaza Pandan Malim 1. Sim Swee Tin 1. T.M. Lim Sdn BhdSDN BHD (Business Park), Balai Panjang 2. Lim Peng Cheong
75250 Melaka 3. Dato' Mohamed Zain binTelephone : 06-3371533 Mohamed YusofFacsimile : 06-3371550/3371577 4. Sim Cheng Khuan
5. Kuala Lumpur City Corporation Bhd
54
Kuala Lumpur Stock Exchange
VOTING MEMBERS MELAKA
STRAITS Lot 9 & 10, 1st Floor Dealing Members: Non-Dealing Members:SECURITIES Bangunan Tabung Haji 1. Goh Choon Hock 1. Straits Asset Holdings Sdn Bhd SDN BHD Jalan Banda Kaba 2. Ahmad Ezzanee Azizan 2. Rosely Ahmad
75000 Melaka bin Mohd Ali Azizan 3. Seah Fook ChinTelephone : 06-2833622Facsimile : 06-2849886
VOTING MEMBERS PENANG
HWANG-DBS Levels 2, 3, 4, 7 & 8 Dealing Members: Non-Dealing Members:SECURITIES BHD Wisma Sri Pinang 1. Dato' Seri Hwang Sing Lue 1. Hwang-DBS (Malaysia) Berhad
60 Green Hall 2. Tunku Dato' Seri Nadzaruddin 2. Tunku Tan Sri Imran ibni10200 Penang Ibni Tuanku Ja'afar Tuanku Ja'afarTelephone : 04-2636996 3. Hwang Lip Teik 3. Ong Eng KooiFacsimile : 04-2639597
THONG & KAY HIAN Wisma Sri Pinang, Level 5 & 6 Dealing Members: Non-Dealing Members:SECURITIES 60, Green Hall & Level 4 1. Thong Wai Loen 1. UOB Kay Hian (M) Holdings SDN BHD Mutiara I & P, No. 47, Green Hall 2. Thong Yue Leong Sdn Bhd
10200 Penang 3. Thong Miew Peng 2. Tang Wee LokeTelephone : 04-2635481 3. Wee Ee ChaoFacsimile : 04-2635741/2622852 4. Estate of Dato' Hj Ali bin Esa
UT SECURITIES 6th, 10th & 12th Floor Dealing Members: Non-Dealing Members:SDN BHD Bangunan Mayban Trust 1. Frederick Ng Kweng Chan 1. Rentak Wira Sdn Bhd
3 Penang Street, 2. Lee Seong Chong 2. Goh Choon Lye10200 Penang 3. Ling Hee Keat 3. Dato' Kamaruddin bin JaafarTelephone : 04-2626644/6660Facsimile : 04-2644166
VOTING MEMBER PENANG - BUTTERWORTH
MERCURY Ground, 1st, 2nd & 3rd Floor Dealing Members: Non-Dealing Member:SECURITIES Wisma UMNO 1. Chew Sing Guan 1. Hj Shuaib LazimSDN BHD Lorong Bagan Luar Dua 2. Mat Zuki bin Mahmud
12000 ButterworthSeberang PeraiTelephone : 04-3322123Facsimile : 04-3231813/ 3312195
VOTING MEMBERS PERAK DARUL RIDZUAN
BOTLY SECURITIES 1st Floor, Plaza Teh Teng Seng Dealing Members: Non-Dealing Members:SDN BHD 227, Jalan Kampar, 1. Ee Beng Wat 1. TA Enterprise Bhd
30250 Ipoh 2. Ahmad Sabri bin Harun 2. Datin Tan Kuay FongPerak Darul Ridzuan 3. Dato' Kalimullah bin Telephone : 05-2531313 Masheerul HassanFacsimile : 05-2536785/2557950 4. U Chin Wei
M & A SECURITIES M & A Building Dealing Members: Non-Dealing Members:SDN BHD 52A, Jalan Sultan Idris Shah 1. Choo Sen Yoong 1. Insas Bhd
30000 Ipoh 2. Thong Kok Yoon 2. Alias bin Haji AhmadPerak Darul RidzuanTelephone : 05-2419800Facsimile : 05-2551015
SBB SECURITIES 51-53 Persiaran Greenhill Dealing Members: Non-Dealing Members:SDN BHD 30450 Ipoh, 1. Raja Puan Sri Dato' Noora 1. SBB Capital Markets Sdn Bhd
Perak Darul Ridzuan Ashikin bt Raja Abdullah 2. Ramuda Sdn BhdTelephone : 05-2530888 2. Lee Seang Seng 3. Nordin bin YahayaFacsimile : 05-2537666 4. Dato' Tan Teong Hean
KLSE Members (Principal Offices) as at 31 December 2002
55
Annual Repor t 2002
VOTING MEMBERS TERENGGANU DARUL IMAN
FA SECURITIES No. 51 & 51A, Ground, Mezzanine Dealing Member: Non-Dealing Members:SDN BHD & Tingkat 1, Jalan Tok Lam 1. Isa bin Mustapha 1. FA Peninsular Bhd
20100 Kuala Terengganu 2. Perbadanan Menteri Terengganu Darul Iman Besar TerengganuTelephone : 09-6238128 3. Dato' Muhammad FasriFacsimile : 09-6238129 bin Samsudin
4. Hj Mohd Ariff bin Taib
PTB SECURITIES Tingkat 1,2 & 3 Dealing Member: Non-Dealing Members:SDN BHD No. 61 Jalan Sultan Ismail 1. Ismail bin Nik Man 1. PTB Securities Holdings
Peti Surat 151 Sdn BhdPejabat Pos Besar 2. Mat Zaid bin Ibrahim20700 Kuala Trengganu 3. Dato' Mazlan @ Mohd Terengganu Darul Iman Nanri bin HashimTelephone : 09-6235546 4. Hj Yusoff bin Hj TahirFacsimile : 09-6235532
VOTING MEMBER SARAWAK
BORNEO 12G, Jalan Kampung Datu Dealing Member: Non-Dealing Members:SECURITIES 96000 Sibu 1. Tan Mee Mee 1. Borneo Securities Holdings SDN BHD Sarawak Sdn Bhd
Telephone : 084-319998 2. Tan Sri Dato' Seri MegatFacsimile : 084-313193 Junid bin Megat Ayob
3. Engak @ Richard WilAnak Uban
4. Henry Lian Aran5. Clement Jamal Anak Eddy6. Jospeh Salang Anak Gandum
VOTING MEMBER SABAH
INNOSABAH 11 Equity House, Block K Dealing Member: Non-Dealing Members:SECURITIES Sadong Jaya, Karamunsing 1. Awang bin Ahmad @ 1. Kretam Holdings BhdBHD 88100 Kota Kinabalu Awang Ariffin 2. Seah Sen Leang
Sabah 3. Lee Swi HengTelephone : 088-234090 4. Faidzan bin HassanFacsimile : 088-234100 5. Kong Kok Keong
OMEGA SECURITIES SDN BHD Dealer’s licence revoked by the Securities Commission on 5 June 1998.
Number of Member Companies (Voting Members) : 41Number of Dealing Members : 91Number of Non-Dealing Members : 158
Kuala Lumpur Stock Exchange
The commanding structure of the nation’s new offices for the Ministry of
Finance is a combination of traditional as well as modern influences and
overlooks one of the boulevards in Putrajaya. The Ministry of Finance building,
which incorporates sleek architectural lines and a unique façade of a multitude of
arches, is visible from the Putra Bridge.
A sense of vibrancy, efficiency and security emanate from the Ministry of Finance.
These same qualities are mirrored in the Exchange’s core values which form the
foundation of its continued development and growth.
Ministry of Finance
Annual Repor t 2002
S t a t e m e n t s
F inanc ia lC
on
ten
ts 58 Corporate Information
59 Report of the Committee
62 Statement by the Committee
62 Statutory Declaration
63 Report of the Auditors
64 Income Statements
65 Balance Sheets
67 Statement of Changes in Equity
69 Cash Flow Statements
72 Notes to the Financial Statements
58
Kuala Lumpur Stock Exchange
REGISTERED OFFICE
14th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
COMMITTEE MEMBERS
Dato’ Mohammed Azlan bin Hashim
Datuk Mohaiyani binti Shamsudin
Tan Kim Leong
Abdul Kadir bin Haji Md Kassim
Abdul Jabbar bin Abdul Majid
Peter Leong Tuck Leng
Yusli bin Mohamed Yusoff
Datin Mariam Yusof (appointed on 1 January 2002)
Abdul Rauf bin Ramli (appointed on 1 January 2002)
Chan Guan Seng (retired on 31 December 2001)
Abdul Wahab bin Nan Abidin (resigned on 30 November 2001)
SECRETARY
Azman Shah bin Md Yaman
AUDITORS
Ernst & Young AF:0039
Chartered Accountants
Corporate I n f o r m a t i o n
59
Annual Repor t 2002
Repor t o f t h e C o m m i t t e e
The Committee Members have pleasure in presenting their report together with the audited financial statements of the Group and ofthe Exchange for the financial period ended 31 December 2002.
PRINCIPAL ACTIVITIES
The principal activities of the Exchange are to provide, regulate and maintain facilities for conducting the business of a stockexchange in Malaysia.
The principal activities of the subsidiaries are described in Note 8 to the financial statements.
There have been no significant changes in the nature of the principal activities during the financial period except for the following:
(i) addition to the Exchange’s activities arising from the transfer of business operations from Malaysian Exchange of SecuritiesDealing and Automated Quotation Bhd. ("MESDAQ") to the Exchange; and
(ii) the change of principal activity of a subsidiary, KLSE Technology Sdn. Bhd. (formerly known as KLOFFE Capital Sdn. Bhd) froman investment holding company and for the promotion of derivative instruments and exchanges to a company providinginformation and communication technology services.
CHANGE OF FINANCIAL YEAR
During the period, the Group and the Exchange changed the end of their financial period from 30 June to 31 December. The currentfinancial statements are for the 18 month period from 1 July 2001 to 31 December 2002.
The change from 30 June to 31 December was made to:
(i) streamline with the financial year end of other regulators in Malaysia i.e Bank Negara Malaysia and Securities Commission, wherethe change would promote consistency and minimise duplication; and
(ii) facilitate easy comparison and benchmarking by investors and other market participants with other listed exchanges, many ofwhich have their financial year ends on 31 December.
FINANCIAL RESULTS
Group ExchangeRM RM
Net surplus for the period 13,020,120 31,233,933
There were no material transfers to or from reserves or provisions during the financial period other than as disclosed in the statementsof changes in equity.
In the opinion of the Committee Members, the results of the operations of the Group and of the Exchange during the financial periodwere not substantially affected by any item, transaction or event of a material and unusual nature except for the change in accountingpolicies as disclosed in Note 2(c) and Note 2(k)(i) to the financial statements.
MEMBERSHIP FEES
As at 31 December 2002:
(i) membership fees received from past and present members at RM10,000 each amounted to RM2,960,000 (2001 :RM2,960,000); and
(ii) a total contribution of RM94,000,000 (2001: RM94,000,000) was received from members as follows:
60
Kuala Lumpur Stock Exchange
No. of Members Total Contributions
1 July 31 December Contribution Brought Carried 2001 Additions 2002 per Member forward Additions forward
RM’000 RM’000 RM’000 RM’000
5 - 5 5,000 25,000 - 25,000
51 - 51 1,000 51,000 - 51,000
6 - 6 3,000 18,000 - 18,000
62 - 62 94,000 - 94,000
As a result of the consolidation of the stockbroking industry, the number of members in operation as at the end of the financialperiod was 40 (2001 : 55).
(iii) During the period, a sum of RM13,157,993 has been charged against the membership fees for advisory fees paid for theproposed demutualisation of the Exchange. The advisory fee incurred is not in the normal course of operations of the Exchange.
COMMITTEE MEMBERS
The names of the Committee Members in office since the date of the last report and the date of this report are:
Dato’ Mohammed Azlan bin Hashim
Datuk Mohaiyani binti Shamsudin
Tan Kim Leong
Abdul Kadir bin Haji Md Kassim
Abdul Jabbar bin Abdul Majid
Peter Leong Tuck Leng
Yusli bin Mohamed Yusoff
Datin Mariam Yusof (appointed on 1 January 2002)
Abdul Rauf bin Ramli (appointed on 1 January 2002)
Chan Guan Seng (retired on 31 December 2001)
Abdul Wahab bin Nan Abidin (resigned on 30 November 2001)
COMMITTEE MEMBERS’ BENEFITS
Neither at the end of the financial period, nor at any time during that period, did there subsist any arrangement to which the Exchangewas a party, whereby Committee Members might acquire benefits by means of the acquisition of shares in or debentures of any otherbody corporate.
Since the end of the previous financial year, no Committee Member has received or become entitled to receive a benefit (other thanthe fixed salary of a full-time employee of the Exchange, reimbursement of expenditure incurred in attending committee meetings inthe form of meeting allowances and any other benefits in kind as disclosed in the financial statements) by reason of a contract madeby the Exchange or a related corporation with any Committee Member or with a firm of which he is a member, or with a companyin which he has substantial financial interest.
COMMITTEE MEMBERS’ INTERESTS
The Exchange is a company limited by guarantee and, thus, has no shares in which the Committee Members could have an interest.Similarly, the Exchange has not issued any debentures.
None of the Committee Members in office at the end of the financial period had any interest in shares in its related corporations duringthe financial period.
Report o f t h e C o m m i t t e e
61
Annual Repor t 2002
OTHER STATUTORY INFORMATION
(a) Before the income statements and balance sheets of the Group and of the Exchange were made out, the Committee Memberstook reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of provision fordoubtful debts and satisfied themselves that all known bad debts had been written off and adequate provision had beenmade for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinarycourse of business had been written down to an amount which they might be expected so to realise.
(b) At the date of this report, the Committee Members are not aware of any circumstances not otherwise dealt with in this report orfinancial statements of the Group and of the Exchange which would render:
(i) the amounts written off as bad debts or provided for as doubtful debts inadequate to any substantial extent; and
(ii) the values attributed to current assets in the financial statements of the Group and of the Exchange misleading.
(c) At the date of this report, the Committee Members are not aware of any circumstances which have arisen which renderadherence to the existing method of valuation of assets or liabilities of the Group and of the Exchange misleading orinappropriate.
(d) At the date of this report, the Committee Members are not aware of any circumstances not otherwise dealt with in this report orfinancial statements of the Group and of the Exchange which would render any amount stated in the financial statementsmisleading.
(e) As at the date of this report, there does not exist:
(i) any charge on the assets of the Group and of the Exchange which has arisen since the end of the financial period whichsecures the liabilities of any other person; or
(ii) any contingent liability in respect of the Group or of the Exchange which has arisen since the end of the financial period.
(f) In the opinion of the Committee Members:
(i) no contingent liability or other liability has become enforceable or is likely to become enforceable within the period of twelvemonths after the end of the financial period which will or may affect the ability of the Group and of the Exchange to meet theirobligations when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial periodand the date of this report which is likely to affect substantially the results of the operations of the Group and of the Exchangefor the financial period in which this report is made.
SIGNIFICANT EVENTS
The significant events during the financial period are disclosed in Note 31 to the financial statements.
AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in office.
Signed on behalf of the Committeein accordance with a resolutionof the Committee Members
DATO' MOHAMMED AZLAN BIN HASHIM DATUK MOHAIYANI BINTI SHAMSUDIN
Kuala Lumpur, MalaysiaDate: 27 March 2003
62
Kuala Lumpur Stock Exchange
PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
We, DATO' MOHAMMED AZLAN BIN HASHIM and DATUK MOHAIYANI BINTI SHAMSUDIN, being two of the Committee Membersof KUALA LUMPUR STOCK EXCHANGE, do hereby state that in the opinion of the Committee Members, the accompanying financialstatements set out on pages 64 to 96 are drawn up in accordance with applicable Approved Accounting Standards in Malaysia andthe provisions of the Companies Act, 1965 so as to give a true and fair view of the financial position of the Group and of the Exchangeas at 31 December 2002 and of the results and the cash flows of the Group and of the Exchange for the period then ended.
Signed on behalf of the Committeein accordance with a resolutionof the Committee Members
DATO' MOHAMMED AZLAN BIN HASHIM DATUK MOHAIYANI BINTI SHAMSUDIN
Kuala Lumpur, MalaysiaDate: 27 March 2003
Statement b y t h e C o m m i t t e e
PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
I, DATO' MOHD SALLEH BIN ABDUL MAJID, being the officer primarily responsible for the financial management of KUALALUMPUR STOCK EXCHANGE, do solemnly and sincerely declare that the accompanying financial statements set out on pages 64to 96 are in my opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue ofthe provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by )the abovenamed DATO’ MOHD SALLEH )BIN ABDUL MAJID at Kuala Lumpur )in the Federal Territory on 27 March 2003 ) DATO’ MOHD SALLEH BIN ABDUL MAJID
Before me:
Commissioner for Oaths
Statutory D e c l a r a t i o n
63
Annual Repor t 2002
To the Members ofKUALA LUMPUR STOCK EXCHANGE (Incorporated in Malaysia)
We have audited the accompanying financial statements set out on pages 64 to 96. These financial statements are the responsibilityof the Exchange's Committee Members. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significant estimates made by the CommitteeMembers, as well as evaluating the overall presentation of information of the financial statements. We believe that our audit providesa reasonable basis for our opinion.
In our opinion:
(a) the financial statements have been properly drawn up in accordance with the provisions of the Companies Act, 1965 andapplicable Approved Accounting Standards in Malaysia so as to give a true and fair view of:
(i) the financial position of the Group and of the Exchange as at 31 December 2002 and of the results and the cash flows ofthe Group and of the Exchange for the period then ended; and
(ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements; and
(b) the accounting and other records and the registers required by the Act to be kept by the Exchange and by its subsidiaries forwhich we have acted as auditors have been properly kept in accordance with the provisions of the Act.
We have considered the financial statements and the auditors' reports thereon of the subsidiaries of which we have not acted asauditors, as indicated in Note 8 to the financial statements, being financial statements which have been included in the consolidatedfinancial statements.
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of theExchange are in form and content appropriate and proper for the purposes of the preparation of the consolidated financialstatements and we have received satisfactory information and explanations required by us for those purposes.
The auditors' reports on the financial statements of the subsidiaries were not subject to any qualification and did not include anycomment required to be made under Section 174(3) of the Companies Act, 1965.
ERNST & YOUNG Wong Kang HweeAF: 0039 No. 1116/01/04(J)Chartered Accountants Partner
Kuala Lumpur, MalaysiaDate: 27 March 2003
Repor t o f t h e A u d i t o r s
64
Kuala Lumpur Stock Exchange
Group Exchange1.7.2001 1.7.2000 1.7.2001 1.7.2000
to to to to31.12.2002 30.6.2001 31.12.2002 30.6.2001
Note RM RM RM RM
Revenue 3 245,798,926 183,378,898 217,715,736 134,327,586
Other operating income 101,857,437 56,712,946 55,674,415 26,679,562
347,656,363 240,091,844 273,390,151 161,007,148
Staff cost (129,577,566) (78,238,214) (71,906,743) (50,674,713)
Depreciation (37,415,456) (36,364,380) (28,150,379) (29,286,476)
Other operating expenses (149,335,235) (68,324,693) (113,254,753) (54,933,392)
Surplus from operations 4 31,328,106 57,164,557 60,078,276 26,112,567
Finance cost 5 (675,312) (1,124,611) (46,011) (28,659)
Surplus before taxation 30,652,794 56,039,946 60,032,265 26,083,908
Taxation 6 (13,293,983) (25,133,493) (28,798,332) (12,083,222)
Net surplus 17,358,811 30,906,453 31,233,933 14,000,686
Minority interests (4,338,691) (1,062,104) - -
Net surplus for the period/year 13,020,120 29,844,349 31,233,933 14,000,686
Income S t a t e m e n t s for the per iod ended 31 December 2002
The accompanying notes are an integral part of these statements.
65
Annual Repor t 2002
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
Note RM RM RM RM
NON-CURRENT ASSETS
Property, plant and equipment 7 323,526,405 381,717,812 312,208,738 358,044,915
Investment in subsidiaries 8 - - 66,131,704 39,761,607
Loan stocks from subsidiary 9 - - 2,000,000 -
Other investments 10 212,639,581 166,198,527 89,174,621 85,549,535
Staff loans receivable 11 44,548,171 38,923,147 42,779,495 37,037,388
Goodwill 12 51,957,581 14,603,314 35,023,304 -
632,671,738 601,442,800 547,317,862 520,393,445
CURRENT ASSETS
Cash and bank balances 11,853,665 17,407,580 117,237 266,299
Short term deposits 13 798,091,901 869,443,506 360,864,675 419,584,626
Receivables 14 42,150,600 62,236,011 12,552,282 20,707,120
Short term investments 15 161,847,087 88,535,404 161,847,087 88,535,404
Due from Compensation Funds 5,414,694 1,915,551 4,820,732 -
Due from subsidiaries 16 - - 8,440,259 17,385,761
1,019,357,947 1,039,538,052 548,642,272 546,479,210
CURRENT LIABILITIES
Short term borrowings 24 219,700 219,700 - -
Due to subsidiaries 17 - - 3,539,151 -
Taxation 37,492,388 41,746,828 37,443,613 38,926,748
Trade payables 18 111,986,167 93,162,717 - -
Sundry payables 44,920,904 52,755,571 31,462,957 28,638,809
194,619,159 187,884,816 72,445,721 67,565,557
NET CURRENT ASSETS 824,738,788 851,653,236 476,196,551 478,913,653
1,457,410,526 1,453,096,036 1,023,514,413 999,307,098
Balance Sheets a s a t 3 1 D e c e m b e r 2 0 0 2
The accompanying notes are an integral part of these balance sheets.
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Kuala Lumpur Stock Exchange
Balance Sheets a s a t 3 1 D e c e m b e r 2 0 0 2
The accompanying notes are an integral part of these balance sheets.
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
Note RM RM RM RM
REPRESENTED BY:
Membership fees 19 83,802,007 96,960,000 83,802,007 96,960,000
Accumulated funds 1,263,332,539 1,250,312,419 875,322,915 844,088,982
Capital reserve 20 14,949,963 13,749,969 - -
Foreign exchange reserve (6,101) (6,099) - -
1,362,078,408 1,361,016,289 959,124,922 941,048,982
Minority interests 18,096,523 24,268,982 - -
1,380,174,931 1,385,285,271 959,124,922 941,048,982
Retirement benefits 21 24,644,877 14,041,806 16,053,676 9,383,740
Deferred income 22 2,831,203 3,102,983 - -
Deferred taxation 23 105,500 34,000 - -
Long term borrowings 24 1,318,200 1,757,600 - -
Long term liability 25 48,335,815 48,874,376 48,335,815 48,874,376
77,235,595 67,810,765 64,389,491 58,258,116
1,457,410,526 1,453,096,036 1,023,514,413 999,307,098
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Annual Repor t 2002
GROUP Foreign Membership Capital Exchange Accumulated
Fees Reserve Reserve Funds Total RM RM RM RM RM
At 1 July 2001
As previously stated 96,960,000 13,749,969 (6,099) 1,235,709,105 1,346,412,975
Prior year adjustment (Note 27 (b)) - - - 14,603,314 14,603,314
At 1 July 2001 (restated) 96,960,000 13,749,969 (6,099) 1,250,312,419 1,361,016,289
Currency translation differences - - (2) - (2)
Demutualisation cost (Note 19) (13,157,993) - - - (13,157,993)
Net surplus for the period - - - 13,020,120 13,020,120
Issuance of preference shares (Note 20) - 1,199,994 - - 1,199,994
At 31 December 2002 83,802,007 14,949,963 (6,101) 1,263,332,539 1,362,078,408
GROUP Foreign Membership Capital Exchange Accumulated
Fees Reserve Reserve Funds TotalRM RM RM RM RM
At 1 July 2000
As previously stated 96,960,000 2,750,000 (1,712) 1,189,150,514 1,288,858,802
Prior year adjustment (Note 27 (b)) - - - 8,911,585 8,911,585
At 1 July 2000 (restated) 96,960,000 2,750,000 (1,712) 1,198,062,099 1,297,770,387
Currency translation differences - - (4,387) - (4,387)
Transfer to Compensation Fund - - - (94,029) (94,029)
Minority interest portion of MCD Compensation
Fund reinstated (Note 26) - - - 22,500,000 22,500,000
Net surplus for the year - - - 29,844,349 29,844,349
Share premium from the merger of business -
operations of COMMEX with MDEX (Note 20) - 10,999,969 - - 10,999,969
At 30 June 2001 96,960,000 13,749,969 (6,099) 1,250,312,419 1,361,016,289
Statement of Changes in Equityf o r t h e p e r i o d e n d e d 3 1 D e c e m b e r 2 0 0 2
The accompanying notes are an integral part of these statements.
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Kuala Lumpur Stock Exchange
COMPANY Membership Accumulated Fees Funds Total
RM RM RM
At 1 July 2001
As previously stated 96,960,000 867,652,982 964,612,982
Prior year adjustment (Note 27 (a)) - (23,564,000) (23,564,000)
At 1 July 2001 (restated) 96,960,000 844,088,982 941,048,982
Demutualisation cost (Note 19) (13,157,993) - (13,157,993)
Net surplus for the period - 31,233,933 31,233,933
At 31 December 2002 83,802,007 875,322,915 959,124,922
At 1 July 2000
As previously stated 96,960,000 831,078,296 928,038,296
Prior year adjustment (Note 27 (a)) - (990,000) (990,000)
At 1 July 2000 (restated) 96,960,000 830,088,296 927,048,296
Net surplus for the year - 14,000,686 14,000,686
At 30 June 2001 96,960,000 844,088,982 941,048,982
Statement of Changes in Equityf o r t h e p e r i o d e n d e d 3 1 D e c e m b e r 2 0 0 2
The accompanying notes are an integral part of these statements.
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Annual Repor t 2002
The accompanying notes are an integral part of these statements.
Group Exchange1.7.2001 1.7.2000 1.7.2001 1.7.2000
to to to to31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
CASH FLOWS FROM OPERATING ACTIVITIES
Surplus before taxation 30,652,794 56,039,946 60,032,265 26,083,908
Adjustment for:
Depreciation 37,415,456 36,364,380 28,150,379 29,286,476
Property, plant and equipment written off 30,643 1,283,701 - -
Impairment losses on property, plant and equipment 28,245,200 - 25,170,147 -
Amortisation of goodwill 2,549,213 369,359 1,843,332 -
Net provision for/(write-back of) bad and doubtful debts 761,808 (14,604,803) 995,531 (2,621,985)
Preliminary and pre-operating expenses written off - 21,150 - -
Net gain on sale of property, plant and equipment (2,523,633) (437,879) (2,244,091) (230,290)
Provision for diminution in value of investment - - - 5,329,285
Recreational club membership benefits written off 225,158 309,095 - -
Amortisation of premium less accretion of discount 637,076 (482,835) 905,894 (593,981)
Provision for retirement benefits 14,214,877 4,301,365 9,490,761 4,015,693
Net gain on disposal of investments (20,672,872) (1,020,881) (8,288,730) (1,020,881)
Interest income (59,091,872) (41,053,806) (40,870,364) (21,571,775)
Interest expense 232,981 132,730 - -
Gross dividend income - - (67,105,556) (1,375,000)
Operating surplus before working capital changes 32,676,829 41,221,522 8,079,568 37,301,450
Decrease in receivables 26,671,883 12,344,566 9,072,741 6,716,835
Decrease in payables (12,159,488) (16,934,130) (20,338,803) (19,086,063)
Decrease in amount due from subsidiaries - - 80,308,108 117,948,237
Decrease in amount due from associated company - 544,182 - -
Cash generated from operations 47,189,224 37,176,140 77,121,614 142,880,459
Interest paid (232,981) (132,730) - -
Taxes paid (17,476,923) (53,881,917) (30,281,467) (23,469,463)
Net cash generated from/(used in) operating activities 29,479,320 (16,838,507) 46,840,147 119,410,996
Cash Flow Statementsf o r t h e p e r i o d e n d e d 3 1 D e c e m b e r 2 0 0 2
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Kuala Lumpur Stock Exchange
Group Exchange1.7.2001 1.7.2000 1.7.2001 1.7.2000
to to to to31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash from acquisition of a subsidiary's net assets* - 109,491,609 - -
Purchase of unquoted bonds - net (99,503,439) (195,786,419) (69,553,933) (143,003,869)
Increase in investment in subsidiaries - - - (7,224,800)
Acquisition of business operations of MESDAQ** (17,937,260) - (17,937,260) -
Purchase of additional shares in subsidiaries - - (15,800,000) -
Investment in subsidiary - - (10,570,097) -
Purchase of club memberships (150,200) (197,858) - -
Increase in loans granted to staff (5,625,024) (12,691,733) (5,742,107) (12,380,796)
Purchase of loan stock from subsidiary - - (2,000,000) -
Interest received 51,879,591 36,823,318 39,092,927 19,540,291
Purchase of property, plant and equipment (10,683,957) (10,452,127) (8,125,069) (7,173,916)
Proceeds from sale of property, plant and equipment 6,266,551 524,185 3,443,664 272,232
Purchase of shares from minority shareholders (12,000,000) - - -
Net cash used in investing activities (87,753,738) (72,289,025) (87,191,875) (149,970,858)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of dividend to minority shareholders (2,196,000) (810,000) - -
Transfer to Compensation Fund (3,499,143) (50,094,029) (4,820,732) -
Decrease in long term liability (977,960) (538,561) (538,560) (538,561)
Preference shares issued 1,199,994 - - -
Demutualisation cost (13,157,993) - (13,157,993) -
Net cash used in financing activities (18,631,102) (51,442,590) (18,517,285) (538,561)
NET DECREASE IN CASH AND CASH EQUIVALENTS (76,905,520) (140,570,122) (58,869,013) (31,098,423)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD/YEAR 886,851,086 1,027,421,208 419,850,925 450,949,348
CASH AND CASH EQUIVALENTS AT
END OF PERIOD/YEAR 809,945,566 886,851,086 360,981,912 419,850,925
CASH AND CASH EQUIVALENTS COMPRISE:
Cash and bank balances 11,853,665 17,407,580 117,237 266,299
Short term deposits 798,091,901 869,443,506 360,864,675 419,584,626
809,945,566 886,851,086 360,981,912 419,850,925
Cash Flow Statementsf o r t h e p e r i o d e n d e d 3 1 D e c e m b e r 2 0 0 2
The accompanying notes are an integral part of these statements.
71
Annual Repor t 2002
* Net cash from acquisition of a subsidiary’s net assets
2001RM
Cash and bank balances 5,762,801
Short term deposits 103,728,808
Trade receivables 422,980
Sundry receivables 1,072,108
Investments 26,000
Property, plant and equipment 1,426,150
Trade payables (90,359,804)
Sundry payables (2,476,752)
Deferred income (3,121,170)
Taxation (34,290)
Short term borrowing (219,700)
Long term borrowing (1,757,600)
Net assets acquired 14,469,531
Investment in associated company (4,530,619)
Goodwill on acquisition 6,061,088
Total consideration 16,000,000
Less: Purchase consideration
- Issuance of "B" preference shares (16)
- Issuance of "C" preference shares (15)
- Share premium on preference shares issued (10,999,969)
- Balance payable to Commodity and Monetary Exchange
of Malaysia ("COMMEX") members (included in sundry payables) (5,000,000)
Cash and cash equivalents acquired 109,491,609
Net cash from acquisition 109,491,609
** Net cash outflow from acquisition of business operations of MESDAQ
2001RM
Property, plant and equipment 558,853
Sundry receivables 135,997
Sundry payables (19,624,226)
Net assets acquired (18,929,376)
Goodwill on acquisition 36,866,636
Net cash outflow from acquisition of business operations 17,937,260
The accompanying notes are an integral part of these statements.
72
Kuala Lumpur Stock Exchange
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
1. CORPORATE INFORMATION
The principal activities of the Exchange are to provide, regulate and maintain facilities for conducting the business of a stockexchange in Malaysia.
The principal activities of the subsidiaries are described in Note 8.
There have been no significant changes in the nature of the principal activities during the financial period except for the following:
(i) addition to the Exchange’s activities arising from the transfer of business operations from Malaysian Exchange of SecuritiesDealing and Automated Quotation Bhd. ("MESDAQ") to the Exchange; and
(ii) the change of principal activity of a subsidiary, KLSE Technology Sdn. Bhd. (formerly known as KLOFFE Capital Sdn. Bhd)from an investment holding company and for the promotion of derivative instruments and exchanges to a company providing information and communication technology services.
The Exchange was incorporated under the Companies Act, 1965 on 14 December 1976 as a company limited by guarantee anddoes not have a share capital. Membership fees and accumulated funds of the Exchange are not distributable to the membersof the Exchange.
The registered office of the Exchange is located at 14th floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur.
The number of employees in the Group and in the Exchange at the end of the financial period was 1,108 (2001 : 1,191) and 501(2001 : 658) respectively.
The financial statements were authorised for issue by the Committee in accordance with a resolution of the Committee Memberson 27 March 2003.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
The financial statements of the Group and of the Exchange have been prepared under the historical cost convention andcomply with the provisions of the Companies Act, 1965 and applicable Approved Accounting Standards in Malaysia.
(b) Basis of Consolidation
The consolidated financial statements include the financial statements of the Exchange and all its subsidiaries. Subsidiariesare those companies in which the Group has a long term equity interest and where it has power to exercise control over thefinancial and operating policies so as to obtain benefits therefrom.
Subsidiaries are consolidated using the acquisition method of accounting. Under the acquisition method of accounting, theresults of a subsidiary acquired or disposed off during the period are included in the consolidated income statement from theeffective date of acquisition or up to the effective date of disposal, as appropriate. The assets and liabilities of a subsidiaryare measured at their fair values at the date of acquisition and these values are reflected in the consolidated balance sheet.The difference between the cost of an acquisition and the fair value of the Group's share of the net assets of the acquiredsubsidiary at the date of acquisition is included in the consolidated balance sheet as goodwill or negative goodwill arising onconsolidation.
Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the consolidatedfinancial statements reflect external transactions only. Unrealised losses are eliminated on consolidation unless costs cannotbe recovered.
The gain or loss on disposal of a subsidiary is the difference between net disposal proceeds and the Group's share of its netassets together with any unamortised balance of goodwill and exchange differences which were not previously recognisedin the consolidated income statement.
Minority interest is measured at the minorities' share of the post acquisition fair values of the identifiable assets and liabilitiesof the acquiree.
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Annual Repor t 2002
(c) Goodwill
Goodwill represents the excess of the cost of acquisition over the Group's or Exchange's interest in the fair value of theidentifiable assets and liabilities at the date of acquisition.
Goodwill is stated at cost less accumulated amortisation and impairment losses. The policy for the recognition andmeasurement of impairment losses is in accordance with Note 2(l). Goodwill is presented separately in the balance sheet andis amortised on a straight-line basis over its estimated useful life of 20 years.
Prior to 1 July 2001, goodwill net of reserve arising on consolidation was written off to the income statement immediately.The Committee Members consider that the change to amortise the goodwill on a straight-line basis over its estimated life of20 years gives a fairer presentation of the results and financial position of the Group. Following this change in accountingpolicy, the amounts for the current and comparative years have been stated on the new basis and a prior year adjustmenthas been made. The effects of this change in accounting policy are disclosed in Note 27.
(d) Investment in Subsidiaries
The Exchange's investment in subsidiaries are stated at cost less impairment losses. The policy for the recognition andmeasurement of impairment losses is in accordance with Note 2(l).
On disposal of such investments, the difference between net disposal proceeds and their carrying amounts is charged orcredited to the income statement.
(e) Property, Plant and Equipment and Depreciation
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment losses. The policy for therecognition and measurement of impairment losses is in accordance with Note 2(l).
All property, plant and equipment are depreciated on a straight-line basis to write off the cost of each asset to its residualvalue over the estimated useful life at the following rates:
Leasehold land - long term 99 years
Freehold and leasehold building and office lots 2%
Renovations 20%
Office equipment, electrical installation, furniture and fittings 10% - 20%
Computers and office automation 20% - 33.33%
Motor vehicles 20%
The leasehold building and office lots have a term of 99 years.
Upon the disposal of an item of property, plant or equipment, the difference between the net disposal proceeds and thecarrying amount is charged or credited to the income statement.
(f) Cash and Cash Equivalents
For the purposes of the cash flow statements, cash and cash equivalents include cash on hand and in banks and short termdeposits which have insignificant risk of changes in value.
(g) Deferred Taxation
The tax expense for the period is based on the profit for the period, as adjusted for tax purposes, together with a charge orcredit for deferred taxation.
Deferred taxation is provided for by the liability method for all timing differences except when there is reasonable evidencethat these timing differences will not reverse in the forseeable future. Deferred tax benefits are only recognised when thereis a reasonable expectation of realisation in the near future.
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Kuala Lumpur Stock Exchange
(h) Provisions for Liabilities
Provisions for liabilities are recognised when the Group has a present obligation as a result of a past event and it is probablethat an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate ofthe amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current bestestimate.
(i) Retirement Benefits
(i) Non-executive staff
Retirement benefits for non-executive staff are paid to the Employees Provident Fund and are charged against incomefor the period.
(ii) Executive staff
Retirement benefits of the Group for executive staff are paid to an approved scheme at a rate determined by theExchange and the subsidiaries stated below with the advice of an actuary and such payments have been charged to theincome statement for the financial period.
In accordance with the rules of the Retirement Benefit Scheme, the cost of retirement benefits under this scheme isdetermined based on triennial actuarial valuation using the “Attained Age” actuarial valuation method. The last actuarialvaluation was performed as of 31 December 2002.
Subsidiaries
Securities Clearing Automated Network Services Sdn. Bhd. ("SCANS")
Malaysian Central Depository Sdn. Bhd. ("MCD")
Labuan International Financial Exchange Inc ("LFX")
KLSE Property Management Sdn. Bhd. (“KPM”)
KLSE Technology Sdn. Bhd. (“KLSE TECH”)
KLSE Information Services Sdn. Bhd. ("KLSE IS") (formerly known as KLSE-Bernama Real-Time Information Services Sdn. Bhd.)
Malaysia Derivatives Exchange Bhd. ("MDEX")
(j) Foreign Currencies
Transactions in foreign currencies are initially converted into Ringgit Malaysia at rates of exchange ruling at the transactiondates. At each balance sheet date, foreign currency monetary items are translated into Ringgit Malaysia at exchange ratesruling at that date. Non-monetary items which are carried at historical cost are translated using the historical rate as of thedate of acquisition and non monetary items which are carried at fair value are translated using the exchange rate that existedwhen the values were determined. All exchange rate differences are taken to the income statement.
The USD denominated financial statements of a subsidiary are translated at year-end exchange rates with respect to theassets and liabilities, and at the exchange rates at the date of the transactions with respect to the income statement. Allresulting translation differences are included in the foreign exchange reserve in shareholders' equity.
The exchange rate ruling for USD denominated balances at both balance sheet dates is RM3.80 : USD1.00.
(k) Revenue Recognition
(i) Dividend income is recognised when the right to receive payment is established.
Prior to 1 July 2001, dividends proposed by subsidiaries after the balance sheet date were recognised as revenue by theExchange as at the balance sheet date. In the current year, in compliance with the new Malaysian Accounting StandardsBoard's Standard 19 (“MASB 19”) : Events after the Balance Sheet Date, such dividend income will only be accountedfor as dividend income in the year where the obligation to pay has been established.
Following this change in accounting policy, the amounts for the current and comparative years are stated on the newbasis and a prior year adjustment has been made. The effects of this change in accounting policy are disclosed in Note27 to the financial statements.
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
75
Annual Repor t 2002
(k) Revenue Recognition (contd.)
(ii) Grants received by Malaysian Derivatives Clearing House Berhad (“MDCH”), a subsidiary, from the SecuritiesCommission, are recognised as income over the periods necessary to match them with the related costs which they areintended to compensate, on a systematic basis.
(iii) Interest income comprises interest income recognised on short term deposits and unquoted bonds. Interest income ofthe Group also includes interest earned on MCD Compensation Fund’s deposits and investments. Interest income isrecognised on an accrual basis.
(iv) Accretion of discounts and amortisation of premiums on investments are recognised on an effective yield basis.
(v) All other revenue is recognised on an accrual basis.
(l) Impairment of Assets
At each balance sheet date, the Group reviews the carrying amounts of its assets, other than financial assets, to determinewhether there is any indication that those assets have suffered an impairment loss. If any such indication exists, impairmentis measured by comparing the carrying values of the assets with their recoverable amounts. Recoverable amount is thehigher of net selling price and value in use, which is measured by reference to discounted future cash flows. Recoverableamounts are estimated for individual assets or, if it is not possible, for the cash-generating unit to which the asset belongs.
An impairment loss is charged to the income statement immediately.
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the impairment lossesrecognised for the asset no longer exist or have decreased. The reversal is recognised to the extent of the carrying amountof the asset that would have been determined (net of amortisation and depreciation) had no impairment loss beenrecognised. The reversal is recognised in the income statement immediately.
(m) Receivables
Receivables are carried at anticipated realisable values. Bad debts are written off when identified. Provision for doubtful debtsis made on all debts which are six months or older.
(n) Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future for services rendered.
(o) Investments
Payables are stated at cost which is the fair value of the consideration to be paid in the future for services rendered.
(i) Short term investments comprise unquoted securities which are managed by external fund managers for the purpose ofshort term capital gains. These unquoted securities are stated at the lower of cost or market value or indicative marketvalue determined on an aggregate basis.
(ii) Recreational club memberships, purchased for the use of directors of a subsidiary, are written off over a period of 2 years.Other recreational club memberships are stated at cost less provision for any permanent diminution in value.
(iii) Other investments comprise unquoted private debt securities that are acquired and held for yield or capital growth andare usually held to maturity. Unquoted private debt securities are stated at cost adjusted for amortisation of premium ornet of accretion of discount. Provision is made for permanent diminution in value where considered appropriate.
(iv) Investment in loan stocks of a subsidiary are stated at cost less provision for any permanent diminution in value.
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Kuala Lumpur Stock Exchange
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
(p) Subscriptions
The rates for monthly subscription fees are as follows:
31.12.2002 30.6.2001RM RM
Voting members 1,000 1,000
Dealing members (executive directors) 300 300
Non-dealing members (corporate/individual) 300 300
Non-dealing members (non-executive directors) 100 100
Dealers’ representatives -* 250
Trainee dealers’ representatives 50 50
* With effect from 1 July 2001, the monthly subscription for dealers’ representatives of RM250 has been waived.
(q) Financial Instruments
Financial instruments recognised on the balance sheet include deposits and bank balances, investment securities,receivables and payables, borrowings and bonds. Financial instruments are recognised in the balance sheet when the Grouphas become a party to the contractual provisions of the instrument.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement.Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense orincome. Distributions to holders of financial instruments classified as equity are charged directly to equity. Financialinstruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis orto realise the asset and settle the liability simultaneously.
3. REVENUE
Revenue of the Group consists of the following:
Group1.7.2001 1.7.2000
to to31.12.2002 30.6.2001
RM RM
Clearing fees 110,021,197 76,429,978
SCORE fees 8,658,962 9,066,732
Members’ subscription 4,012,722 24,945,510
Listing fees 14,923,293 9,576,644
Equipment rental income 29,944,610 16,807,289
Other income/fees derived from operations of the Group 78,238,142 46,552,745
245,798,926 183,378,898
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Annual Repor t 2002
3. REVENUE (contd.)
Revenue of the Exchange consists of the following:
Exchange1.7.2001 1.7.2000
to to31.12.2002 30.6.2001
RM RM
SCORE fees 8,658,962 9,066,732
Members’ subscriptions 2,087,100 24,243,450
Listing fees 14,923,293 9,576,644
Equipment rental income 25,861,770 16,738,930
Significant income from subsidiaries:
- Dividend income 67,105,556 1,375,000
- Office 8,877,244 5,636,519
- Royalty income* 48,684,954 34,179,516
- Cost recoveries 26,892,967 27,170,526
Other income /fees derived from operations of the Exchange 14,623,890 6,340,269
217,715,736 134,327,586
* Royalty income from a subsidiary represents royalty receivable from SCANS, a wholly owned subsidiary.
4. SURPLUS FROM OPERATIONS
Surplus from operations is stated after charging/(crediting):
Group Exchange1.7.2001 1.7.2000 1.7.2001 1.7.2000
to to to to31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Property, plant and equipment
- Impairment losses on property, plant and equipment 28,245,200 - 25,170,147 -
- Property, plant and equipment written off 30,643 1,283,701 - -
- Net gain on sale of property, plant and equipment (2,523,633) (437,879) (2,244,091) (230,290)
Investments
- Provision for diminution in value in investments in
KLSE Technology Sdn. Bhd. - - - 5,329,285
- Net gain on disposal of investments (20,672,872) (1,020,881) (8,288,730) (1,020,881)
- Interest income (including MCD's Compensation Fund
income of RM3,566,786) (2001 : RM2,013,519) (59,091,872) (41,053,806) (40,870,364) (21,571,775)
- Amortisation of premium less accretion of discount
(including MCD's Compensation Fund amortisation
of RM7,007 (2000 : RMNil) 637,076 (482,835) 905,894 (593,981)
78
Kuala Lumpur Stock Exchange
4. SURPLUS FROM OPERATIONS (contd.)
Surplus from operations is stated after charging/(crediting):
Group Exchange1.7.2001 1.7.2000 1.7.2001 1.7.2000
to to to to31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Remuneration of
- Committee Members
Fees 458,333 310,000 - -
Other emoluments 1,375,500 673,216 - -
- Other directors of subsidiaries*
Fees 337,800 260,100 - -
Other emoluments 836,307 525,728 - -
Auditors’ remuneration 193,400 168,900 50,000 40,000
Preliminary and pre-operating expenses written off - 21,150 - -
Amortisation of goodwill 2,549,213 369,359 1,843,332 -
Net provision for/(write-back of) bad and doubtful debts 761,808 (14,604,803) 995,531 (2,621,985)
Office rental
- subsidiary - - 18,340 44,016
- others 2,180,318 1,445,291 1,694,301 1,154,634
Securities Commission levy 20,244,396 15,190,894 - -
Office maintenance 32,855,512 19,177,621 27,870,576 16,946,343
Rental of equipment 3,170,604 799,314 - -
Recreational club memberships benefit to directors** 225,158 309,095 - -
Property management and other service charges by a subsidiary - - 10,862,146 11,406,695
Provision for staff retirement benefits 14,214,877 4,301,365 9,490,761 4,015,693
* The estimated monetary value of other benefits not included in the above received by directors of subsidiaries were RM195,702(2001 : RM61,912).
** This represents cost of recreational club memberships, purchased for the use of directors of a subsidiary who are CommitteeMembers, written off.
5. FINANCE COST
Included in finance cost is:
Group Exchange1.7.2001 1.7.2000 1.7.2001 1.7.2000
to to to to31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Interest expense 232,981 132,730 - -
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
79
Annual Repor t 2002
6. TAXATION
Group Exchange1.7.2001 1.7.2000 1.7.2001 1.7.2000
to to to to31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Current year charge 28,167,622 28,440,833 30,932,778 15,684,222
(Over)/under provision in prior years (14,945,139) 310,860 (2,134,446) -
Transfer from deferred taxation 71,500 (3,618,200) - (3,601,000)
13,293,983 25,133,493 28,798,332 12,083,222
The effective tax rate of the Group and of the Exchange is higher than the statutory tax rate mainly due to certain expenses beingdisallowed for tax reporting purposes and the non-availbility of Group relief for tax losses incurred by companies within the Group.
7. PROPERTY, PLANT AND EQUIPMENT
Officeequipment,
electricalLand and installation, Computersbuildings furniture and office Motor
Note 7 (a) and fittings automation vehicles TotalGroup RM RM RM RM RM
Cost
At 1 July 2001 384,743,263 68,717,176 305,485,847 11,557,001 770,503,287
Additions 34,214 4,489,329 5,691,229 469,185 10,683,957
Transfer from MESDAQ - 2,527,130 - 1,117,285 3,644,415
Disposals (2,700,710) (831,707) (4,994,790) (9,654,849) (18,182,056)
Written off (285,361) (307,060) (46,579) - (639,000)
At 31 December 2002 381,791,406 74,594,868 306,135,707 3,488,622 766,010,603
Accumulated Depreciation
At 1 July 2001 32,512,210 52,133,290 295,798,370 8,341,605 388,785,475
Charge for the period 11,810,648 13,980,100 9,983,997 1,640,711 37,415,456
Transfer from MESDAQ - 2,202,638 - 882,924 3,085,562
Disposals (519,544) (796,329) (4,994,180) (8,129,085) (14,439,138)
Written off (266,444) (295,349) (46,564) - (608,357)
Impairment losses 28,245,200 - - - 28,245,200
At 31 December 2002 71,782,070 67,224,350 300,741,623 2,736,155 442,484,198
Net Book Value
At 31 December 2002 310,009,336 7,370,518 5,394,084 752,467 323,526,405
At 30 June 2001 352,231,053 16,583,886 9,687,477 3,215,396 381,717,812
Depreciation charge for 2001 8,052,618 11,312,595 15,209,446 1,789,721 36,364,380
80
Kuala Lumpur Stock Exchange
7. PROPERTY, PLANT AND EQUIPMENT (contd.)
Officeequipment,
electricalLand and installation, Computersbuildings furniture and office Motor
Note 7 (a) and fittings automation vehicles TotalExchange RM RM RM RM RM
Cost
At 1 July 2001 366,639,582 61,819,172 237,189,213 8,041,508 673,689,475
Additions - 3,985,092 3,836,620 303,357 8,125,069
Transfer from MESDAQ - 2,527,130 - 1,117,285 3,644,415
Disposals - (541,582) (4,724,741) (7,686,954) (12,953,277)
At 31 December 2002 366,639,582 67,789,812 236,301,092 1,775,196 672,505,682
Accumulated Depreciation
At 1 July 2001 27,457,798 47,424,698 234,916,572 5,845,492 315,644,560
Charge for the period 10,096,138 12,822,006 3,993,019 1,239,216 28,150,379
Transfer from MESDAQ - 2,202,638 - 882,924 3,085,562
Disposals - (540,912) (4,724,741) (6,488,051) (11,753,704)
Impairment losses 25,170,147 - - - 25,170,147
At 31 December 2002 62,724,083 61,908,430 234,184,850 1,479,581 360,296,944
Net Book Value
At 31 December 2002 303,915,499 5,881,382 2,116,242 295,615 312,208,738
At 30 June 2001 339,181,784 14,394,474 2,272,641 2,196,016 358,044,915
Depreciation charge for 2001 6,882,277 10,375,800 10,636,516 1,391,883 29,286,476
(a) Land and BuildingLeasehold Freehold
Leasehold building and building andland office lots office lots Renovation Total
Group RM RM RM RM RM
Cost
At 1 July 2001 60,817,500 286,533,509 31,904,477 5,487,777 384,743,263
Additions - - - 34,214 34,214
Disposals - - (2,591,284) (109,426) (2,700,710)
Written off - - - (285,361) (285,361)
At 31 December 2002 60,817,500 286,533,509 29,313,193 5,127,204 381,791,406
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
81
Annual Repor t 2002
7. PROPERTY, PLANT AND EQUIPMENT (contd.)
(a) Land and BuildingLeasehold Freehold
Leasehold building and building andland office lots office lots Renovation Total
Group RM RM RM RM RM
Accumulated Depreciation
At 1 July 2001 4,535,758 21,428,542 3,044,667 3,503,243 32,512,210
Charge for the period 921,476 8,921,743 619,594 1,347,835 11,810,648
Disposals - - (410,258) (109,286) (519,544)
Written off - - - (266,444) (266,444)
Impairment losses 3,259,091 3,075,053 21,911,056 - 28,245,200
At 31 December 2002 8,716,325 33,425,338 25,165,059 4,475,348 71,782,070
Net Book Value
At 31 December 2002 52,101,175 253,108,171 4,148,134 651,856 310,009,336
At 30 June 2001 56,281,742 265,104,967 28,859,810 1,984,534 352,231,053
Depreciation charge for 2001 765,834 5,742,958 638,089 905,737 8,052,618
Leasehold FreeholdLeasehold building and building and
land office lots office lots Renovation TotalExchange RM RM RM RM RM
Cost
At 1 July 2001/At 31 December 2002 60,817,500 285,960,482 19,861,600 - 366,639,582
Accumulated Depreciation
At 1 July 2001 4,535,758 21,333,112 1,588,928 - 27,457,798
Charge for the period 921,476 8,578,814 595,848 - 10,096,138
Impairment losses 3,259,091 21,911,056 - - 25,170,147
At 31 December 2002 8,716,325 51,822,982 2,184,776 - 62,724,083
Net Book value
At 31 December 2002 52,101,175 234,137,500 17,676,824 - 303,915,499
At 30 June 2001 56,281,742 264,627,370 18,272,672 - 339,181,784
Depreciation charge for 2001 765,834 5,719,211 397,232 - 6,882,277
Office lots represent offices and car park spaces in multi-storey buildings.
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Kuala Lumpur Stock Exchange
8. INVESTMENT IN SUBSIDIARIES
Exchange31.12.2002 30.6.2001
RM RM
Unquoted shares, at cost 104,872,104 78,502,007
Accumulated impairment losses (38,740,400) (38,740,400)
66,131,704 39,761,607
Details of the subsidiaries are as follow:
OrdinaryPaid-Up
Capital as atEquity Interest Held (%) 31.12.2002 Principal
Name of Subsidiaries 31.12.2002 30.6.2001 RM Activities
Incorporated in Malaysia:
Securities Clearing Automated 100 100 300,000,000 Providing clearing facilities for Network Services Sdn. Bhd. (“SCANS”) contracts between clearing
members.
KLSE Information Services Sdn. Bhd. 100 55 250,002 Compiling, providing and(“KLSE IS”) disseminating real-time share price
(formerly known as KLSE-Bernama and other relevant financial/ Real-Time Information economic information from the
Services Sdn. Bhd.) Exchange to various subscribers.
Malaysian Central Depository Sdn. Bhd. 55 55 25,000,000 Maintaining and operating a central (“MCD”) depository in respect of securities
listed on stock exchanges inMalaysia.
Malaysian Share Registration 51 51 2,000,000 Providing and/or undertaking shareServices Sdn. Bhd. ("MSRS") registration services.
KLSE Property Management Sdn. Bhd. 100 100 1,000,000 Providing building management and(“KPM”) security services.
(formerly known as KLSE Realty Sdn. Bhd.)
Malaysian Central Depository 55 55 2 Acting as nominees for Nominees Sdn. Bhd. Malaysian Central Depository
Sdn. Bhd. and to receive securities and property on deposit or for safe-custody or management.
KLSE Technology Sdn. Bhd. (“KLSE TECH”) 100 100 39,998,002 Provision of information and communications technology services.
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
83
Annual Repor t 2002
OrdinaryPaid-Up
Capital as atEquity Interest Held (%) 31.12.2002 Principal
Name of Subsidiaries 31.12.2002 30.6.2001 RM Activities
Incorporated in Malaysia:
Malaysia Derivatives Exchange Bhd. (“MDEX”) 100 100 11,426,708 To establish, maintain, conduct,operate and promote a market forthe trading of futures and optionscontracts and facilities for the registration of dealings and settlement of trades in such contracts.
KLOFFE Information Systems Sdn. Bhd. 100 100 2 Dormant - intended principal activities are to provide informationtechnology and management services.
Labuan International Financial Exchange Inc. * 100 100 11,405,300 To provide, regulate and maintain (“LFX”) facilities for conducting the business
of an offshore stock exchange in Labuan.
Commodity and Monetary 100 100 7,060,000 Dormant Exchange of Malaysia**
Malaysian Derivatives 100 100 8,000,000 Providing clearing, settlement andClearing House Berhad ("MDCH")** guaranteeing of futures and options
contracts executed on derivatives exchanges and the administration and enforcement of its business rules.
Malaysia Monetary Exchange Berhad** 100 100 1,000,000 Dormant
I-Mesdaq Sdn. Bhd. 100 - 2 Dormant
* Incorporated in the Federal Territory of Labuan, Malaysia.
** Audited by another firm of auditors.
84
Kuala Lumpur Stock Exchange
9. LOAN STOCKS FROM SUBSIDIARY
During the financial period ended 31 December 2002, the Exchange purchased 2,000,000 of 5 year 4% Redeemable ConvertibleUnsecured Loan Stocks 2002/2007 (RCULS) at a nominal value of RM1 each from MSRS, a subsidiary. The salient features ofthe RCULS are as follows:
(a) Conversion rate - on the basis of 1 RCULS for 1 new ordinary share of RM1 in the subsidiary.
(b) Conversion rights - the registered holders of the RCULS will have the option at any time during the conversion period toconvert the RCULS at the conversion rate into new ordinary shares of RM1 each in the subsidiary.
(c) Conversion period - period commencing from the issue date of the RCULS and ending on the fifth anniversary of the issue date.
(d) The RCULS bear interest of 4% per annum payable semi-annually, commencing on the date falling on the 1st anniversary ofthe issue date of 31 December 2002 and thereafter.
(e) The new ordinary shares allotted and issued upon conversion of the RCULS will rank pari passu in all respect with the existingordinary shares of the subsidiary other than as may be specified in a resolution approving the distribution of dividends priorto their conversion.
10.OTHER INVESTMENTS
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Unquoted, at cost:
Private debt securities 212,762,242 165,614,250 89,200,992 85,010,700
Amortisation of premiums less accretion of discounts (206,961) 408,219 (26,371) 538,835
212,555,281 166,022,469 89,174,621 85,549,535
Recreational club memberships 159,258 309,095 - -
Add: Acquired during the period/year 150,200 197,858 - -
Less: Written off (225,158) (309,095) - -
Provision for diminution in value of investments - (21,800) - -
84,300 176,058 - -
212,639,581 166,198,527 89,174,621 85,549,535
Indicative market value of unquoted private debt securities 217,555,528 173,525,465 90,389,200 89,503,070
Maturities and weighted average yield to maturity of the unquoted private debt securities as at 31 December 2002 are as follows:
Maturity Group ExchangeAverage yield Average yield
to maturity to maturityRM % RM %
< 1year 5,038,584 4.8 5,038,584 4.8
1 - 5 years 82,977,738 6.0 67,977,738 5.8
> 5 years 124,538,959 6.6 16,158,299 6.2
212,555,281 89,174,621
The recreational club memberships are for the use of directors of a subsidiary, who are also Committee Members of the Exchange.
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
85
Annual Repor t 2002
11.STAFF LOANS RECEIVABLE
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Housing loans 44,528,520 38,360,251 43,025,206 36,769,042
Vehicle loans 1,436,749 2,739,885 1,200,542 2,220,025
Computer loans 942,278 229,753 627,798 183,489
Staff advances 7,558 - 7,241 -
Portion repayable within 12 months
included in sundry receivables (2,366,934) (2,406,742) (2,081,292) (2,135,168)
44,548,171 38,923,147 42,779,495 37,037,388
The staff housing and vehicle loans are secured against the properties and vehicles of the borrowers respectively. The staff loansbear interest of 2% to 4% per annum computed on monthly rest basis.
12.NET GOODWILL
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Goodwill
At beginning of period/year 17,346,021 11,284,933 - -
Arising from acquiring additional shares in subsidiary 3,036,844 - - -
Arising from transfer of business operations 36,866,636 6,061,088 36,866,636 -
57,249,501 17,346,021 36,866,636 -
Less:
Accumulated amortisation (5,291,920) (1,995,794) (1,843,332) -
At end of period/year 51,957,581 15,350,227 35,023,304 -
Reserve arising on consolidation
At beginning of period/year (9,958,835) (9,958,835) - -
Less:
Accumulated amortisation 9,958,835 9,211,922 - -
At end of period/year - (746,913) - -
Net goodwill 51,957,581 14,603,314 35,023,304 -
Goodwill is stated at cost less accumulated amortisation and impairment losses. Goodwill net of reserve arising on consolidationis amortised on a straight-line basis over its estimated useful life of 20 years.
Prior to 1 July 2001, goodwill net of reserve arising on consolidation was written off to the income statement immediately. TheCommitee Members consider that the change to amortise the goodwill on a straight-line basis over its estimated life of 20 yearsgives a fairer presentation of the results and financial position of the Group. Following this change in accounting policy, theamounts for the current and comparative years have been stated on the new basis and a prior year adjustment has been made.The effects of this change in accounting policy are disclosed in Note 27.
86
Kuala Lumpur Stock Exchange
13. SHORT TERM DEPOSITS
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Deposits with:
Licensed banks 401,732,706 649,974,700 200,686,831 295,434,455
Licensed finance companies 254,073,255 187,573,123 90,930,000 105,555,000
Licensed discount houses 33,520,567 20,556,142 6,470,344 18,406,142
Licensed merchant banks 102,743,784 10,593,512 62,500,000 -
792,070,312 868,697,477 360,587,175 419,395,597
Repurchase agreement with a discount house 6,021,589 746,029 277,500 189,029
798,091,901 869,443,506 360,864,675 419,584,626
Included in short term deposits are:
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Deposits pledged with licensed banks for banking facilities granted 51,200,000 51,200,000 1,200,000 1,200,000
Short term deposits of the Exchange and of the Group amounting to RM4,416,677 (2001 : RM13,991,628) are managed byexternal fund managers.
The weighted average interest rates during the financial period and the average maturities of deposits as at 31 December 2002were as follows:
Group ExchangeWeighted Weighted Average Average Average AverageInterest Maturities Interest MaturitiesRates Rates
% Days % Days
Licensed banks 3.1 157 3.0 156
Licensed finance companies 3.3 175 3.2 184
Licensed discount houses 2.8 54 2.8 92
Licensed merchant banks 2.9 102 2.9 95
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
87
Annual Repor t 2002
14.RECEIVABLES
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Trade receivables 16,452,538 23,352,856 7,755,037 12,022,072
Interest receivables 6,945,540 6,069,040 2,186,889 2,364,836
Tax recoverable 6,067,947 19,830,672 - -
Other sundry receivables 16,600,083 17,825,278 5,240,555 7,955,780
46,066,108 67,077,846 15,182,481 22,342,688
Provision for doubtful debts (3,915,508) (4,841,835) (2,630,199) (1,635,568)
42,150,600 62,236,011 12,552,282 20,707,120
The movement of provision for doubtful debts is as follows:
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
At beginning of period/year 4,841,835 19,730,879 1,635,568 4,364,887
Net provision for/ (write-back of) doubtful debts 761,808 (14,604,803) 995,531 (2,621,985)
Amount written off (1,688,135) (284,241) (900) (107,334)
At end of period/year 3,915,508 4,841,835 2,630,199 1,635,568
The Group's and the Exchange's normal trade credit term ranges from 7 to 30 days.
The Group and the Exchange have no significant concentration of credit risk that may arise from exposures to a single debtor orto groups of debtors.
15. SHORT TERM INVESTMENTS
Group/Exchange31.12.2002 30.6.2001
RM RM
At cost:
Malaysian Government Securities ("MGS") 4,306,640 4,872,940
Unquoted bonds 157,540,447 83,662,464
161,847,087 88,535,404
Market value of MGS 4,040,900 4,895,515
Indicative market price of unquoted bonds 162,917,512 84,887,415
Short term investments of the Exchange and of the Group are managed by external fund managers on behalf of the Exchange.
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Kuala Lumpur Stock Exchange
15. SHORT TERM INVESTMENTS (Contd.)
Maturities and weighted average yield to maturity of the unquoted private debt securities as at 31 December 2002 are as follows:
Group/ExchangeAverage yield
Maturity 31.12.2002 to maturityRM %
MGS
< 1 year 2,012,040 2.9
1 - 5 years 2,294,600 3.0
Unquoted private debt securities
< 1 year 10,211,000 4.8
1 - 5 years 98,536,566 5.4
> 5 years 48,792,881 6.2
161,847,087
16.DUE FROM SUBSIDIARIES
The amounts due from subsidiaries are unsecured, interest free and have no fixed terms of repayment except for amounts duefrom 3 subsidiaries amounting to RM5,987,422 which was fully repaid during the period, which bear interest of 8.4% per annum(2001 : 6.8% to 8.8% per annum).
17.DUE TO SUBSIDIARIES
The amounts due to subsidiaries are unsecured, interest free and have no fixed terms of repayment.
18.TRADE PAYABLES
Included in trade payables of the Group is RM111,399,495 (2001 : RM92,268,486) relating to amounts due to futures andoptions brokers. The amount arises principally from accruals made for margin payable to MDCH.
19.MEMBERSHIP FEES
As at 31 December 2002:
(i) membership fees received from past and present members at RM10,000 each amounted to RM2,960,000 (2001 :RM2,960,000); and
(ii) a total contribution of RM94,000,000 (2001 : RM94,000,000) was received from members as follows:
1 July No of members 31 DecemberContribution per member RM’000 2001 Addition 2002
5,000 5 - 5
1,000 51 - 51
3,000 6 - 6
62 - 62
As a result of the consolidation of the stockbroking industry, the number of members in operation as at the end of the financialperiod was 40 (2001 : 55).
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
89
Annual Repor t 2002
19.MEMBERSHIP FEES (Contd.)
Total contribution (RM’000)1 July 31 December
Contribution per member RM’000 2001 Addition 2002
5,000 25,000 - 25,000
1,000 51,000 - 51,000
3,000 18,000 - 18,000
94,000 - 94,000
During the period, a sum of RM13,157,993 has been charged against the membership fees for advisory fees paid for theproposed demutualisation of the Exchange. The advisory fee incurred is not in the normal course of operations of the Exchange.
20.CAPITAL RESERVE
Group31.12.2002 30.6.2001
RM RM
Group’s portion of accumulated funds capitalised from redemption
of preference shares (Note a) 2,750,000 2,750,000
Share premium from MDEX (Note b) 12,199,963 10,999,969
14,949,963 13,749,969
(a) This relates to the Group’s portion of accumulated funds capitalised arising from the redemption of 5,000,000 5%redeemable cumulative preference shares of RM1 each by a subsidiary, MCD.
(b) In prior year, MDEX issued 16 non-cumulative “B” preference shares and 15 non-cumulative “C” preference shares of RM1.00each at a total premium of RM10,999,969 as part consideration for the merger of business operations of COMMEX andMDEX. The share premium arising from the above issue is regarded as capital reserve of the Group and is not distributable.The “B” and “C” preference shares have been accounted for as part of the Group’s minority interest.
During the financial period, MDEX further increased its issued and fully paid-up share capital by way of the issuance of 6 non-cumulative "C" preference shares of RM1.00 each at a total premium of RM1,199,994.
21.RETIREMENT BENEFITS
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
At beginning of period/year 14,041,806 13,026,191 9,383,740 8,646,279
Additional provision during the period/year 14,214,877 4,301,365 9,490,761 4,015,693
Utilisation of provision during the period/year (3,611,806) (3,285,750) (2,820,825) (3,278,232)
At end of period/year 24,644,877 14,041,806 16,053,676 9,383,740
90
Kuala Lumpur Stock Exchange
22.DEFERRED INCOME
Deferred income of the Group relates to grants received by a subsidiary, MDCH, from the Securities Commission and isrecognised as income over the period necessary to match them with the related costs which they are intended to compensateon a systematic basis.
23.DEFERRED TAXATION
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
At beginning of period/year 34,000 3,652,200 - 3,601,000
Net transfer to income statement 71,500 (3,618,200) - (3,601,000)
At end of period/year 105,500 34,000 - -
Deferred tax provided for in the financial statements:
- tax effects of excess of capital allowances over depreciation 105,500 34,000 - -
The approximate amount of timing differences for which deferred taxation benefits have not been accounted for in the financialstatement are as follows:
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Unutilised capital allowances 43,357,000 42,823,000 - -
Unabsorbed tax losses 26,985,000 27,458,000 - -
Timing differences between depreciation and
corresponding taxation allowances 31,276,000 28,837,000 32,982,000 33,811,000
Timing differences on provisions 27,934,000 18,588,000 18,684,000 11,019,000
129,552,000 117,706,000 51,666,000 44,830,000
24.LONG TERM BORROWINGS
Group31.12.2002 30.6.2001
RM RM
Long term borrowings 1,537,900 1,977,300
Less: Portion repayable within 12 months included as short term borrowings (219,700) (219,700)
1,318,200 1,757,600
Long term borrowings of the Group relate to amounts payable to the Government of Malaysia and comprise 2 interest-freeunsecured loans of RM697,000 and RM1,500,000. Each loan is repayable in 10 equal annual instalments, repayments of whichcommenced on 30 November 2000.
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
91
Annual Repor t 2002
25.LONG TERM LIABILITY
Group and Exchange31.12.2002 30.6.2001
RM RM
Long term liability 48,874,376 49,412,937
Less: Portion repayable within 12 months included in sundry payables (538,561) (538,561)
48,335,815 48,874,376
Long term liability relates to the amount payable to the Government of Malaysia for the purchase of leasehold land. The amountis payable in 99 annual instalments of RM538,561 each.
26.MCD COMPENSATION FUND
Group31.12.2002 30.6.2001
RM RM
At beginning of period/year - 50,000,000
Transfer from Accumulated Funds - 94,029
Transfer to segregated Compensation Fund - (50,094,029)
At end of period/year - -
In 1997, pursuant to the provisions of Section 5(1)(b)(vii) of the Securities Industry (Central Depositories) Act, 1991, MCD, asubsidiary, establised a scheme of compensation for the purpose of settling claims by depositors against MCD, its authoriseddepository agents and Malaysian Central Depository Nominees Sdn. Bhd. The scheme comprises the Compensation Fund andinsurance policies. MCD has also established a policy to maintain the balance in the Compensation Fund at RM50,000,000. Inconsideration for the above, all revenue accruing to the Compensation Fund deposits and investments are to be credited to MCDand all expenditure incurred for and on behalf of the Compensation Fund will be absorbed by MCD.
In prior year, the MCD Compensation Fund was segregated and transferred from the financial statements of the Group andaccounted for separately. Pursuant to the said segregation, the portion of Compensation Fund accruing to the minorityshareholders of MCD amounting to RM22,500,000 was reinstated to the accumulated funds of the Group.
27.PRIOR YEAR ADJUSTMENT
(a) Dividend income
Exchange
The prior year adjustment represents the effect of the change in accounting policy for dividend income as referred to in Note2(k)(i). This change in accounting policy has been accounted for retrospectively and comparatives have been restated.
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Kuala Lumpur Stock Exchange
27.PRIOR YEAR ADJUSTMENT (Contd.)
This change in accounting policy resulted in an increase in the Exchange's net surplus for the current period by RM23,564,000.The other effects of the change on the financial statements of the Exchange are as follows:
As Previously AsStated Adjustments Restated
RM RM RM
For the year ended 30 June 2001:
Revenue 165,680,364 (31,352,778) 134,327,586
Taxation 20,862,000 (8,778,778) 12,083,222
Net surplus 36,574,686 (22,574,000) 14,000,686
Due from subsidiaries as at 30 June 2002 40,949,761 (23,564,000) 17,385,761
Accumulated funds as at 1 July 2000 831,078,296 (990,000) 830,088,296
Accumulated funds as at 1 July 2001 867,652,982 (23,564,000) 844,088,982
(b) Goodwill
Group
The prior year adjustment represents the effect of the change in accounting policy for goodwill net of reserve arising onconsolidation as described in Note 2(c) and disclosed in Note 12. This change in accounting policy has been accounted forretrospectively and comparatives have been restated.
The change in accounting policy had the following effect on the Group’s and the Exchange’s current period results:
Group ExchangeRM RM
Goodwill from acquisitions made and capitalised during the period (Note 12) 39,903,480 36,866,636
Amortisation of goodwill net of reserve arising on consolidation (2,549,213) (1,843,332)
Increase in net surplus for the period 37,354,267 35,023,304
The other effects of the change on the financial statements of the Group are as follows:
As Previously AsStated Adjustments Restated
RM RM RM
For the year ended 30 June 2001:
Other operating expenses 74,016,422 (5,691,729) 68,324,693
Net surplus 24,152,620 5,691,729 29,844,349
Goodwill as at 30 June 2001 - 14,603,314 14,603,314
Accumulated funds as at 1 July 2000 1,189,150,514 8,911,585 1,198,062,099
Accumulated funds as at 1 July 2001 1,235,709,105 14,603,314 1,250,312,419
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
93
Annual Repor t 2002
28.CAPITAL COMMITMENTS
Group Exchange31.12.2002 30.6.2001 31.12.2002 30.6.2001
RM RM RM RM
Authorised and contracted for:
- Office equipment, furniture and fittings 15,935 93,150 15,935 93,150
- Computer and office automation 570,901 922,456 563,811 922,456
- Building and renovation - 398,001 - -
586,836 1,413,607 579,746 1,015,606
Approved but not contracted for:
- Office equipment, furniture and fittings 321,442 3,936,828 321,442 3,936,828
- Computers and office automation 61,143,099 96,801,725 61,143,099 96,801,725
- Motor vehicles 3,546,643 2,703,907 3,546,643 2,703,907
65,011,184 103,442,460 65,011,184 103,442,460
29.CONTINGENT LIABILITIES - UNSECURED
(a) A claim for an approximate sum of RM18,335,000 being lease line charges omitted from billings since 1994 was madeagainst the Exchange by a local telecommunications company. The Exchange is currently in the process of verifying the saidamount claimed in order to ascertain its actual liability to the telecommunications company. No provision in respect of thesame has been made in the financial statements as negotiations are still pending and an amicable settlement has yet to bereached between the parties.
(b) A demand for RM7,206,000 has been made by a local bank against MSRS, a subsidiary, for allegedly breaching terms of aLetter of Undertaking issued by MSRS to the said bank. The directors of the subsidiary have sought legal advice on thematter. Based on the legal advice received by MSRS, no provision has been made in the financial statements as it is notprobable that there will be an outflow of resources.
30.SIGNIFICANT RELATED PARTY TRANSACTIONS
Exchange1.7.2001 1.7.2000
to to31.12.2002 30.6.2001
RM RM
Royalty income from a subsidiary, SCANS 48,684,954 34,179,516
Cost recoveries from subsidiaries
- SCANS 5,419,667 7,432,239
- MCD 14,882,945 15,611,700
- KLSE IS 1,510,707 2,162,650
- MSRS 2,889,739 1,442,193
- MDEX 1,174,295 192,687
- LFX 198,535 13,200
- MDCH 8,194 -
- KLSE TECH 695,344 -
- KPM 108,170 82,165
26,887,596 26,936,834
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Kuala Lumpur Stock Exchange
30.SIGNIFICANT RELATED PARTY TRANSACTIONS (Contd.)
Exchange1.7.2001 1.7.2000
to to31.12.2002 30.6.2001
RM RM
Office rental income from subsidiaries
- SCANS 1,432,804 821,369
- MCD 4,005,202 3,252,841
- KLSE IS 54,000 85,699
- MSRS 373,512 625,096
- MDEX 977,310 568,954
- LFX 95,108 85,627
- KLSE TECH 1,613,832 -
- KPM 325,476 196,933
8,877,244 5,636,519
Dividend income from subsidiaries
- SCANS 60,000,000 -
- MCD 2,200,000 1,375,000
- KLSE IS 4,305,556 -
- KPM 600,000 -
67,105,556 1,375,000
Property management and other service charges by a subsidiary, KPM. 10,862,146 11,406,695
The Committee Members are of the opinion that with the exception of dividends, the above transactions have been establishedon terms and conditions that are not materially different from those obtainable in transactions with unrelated parties.
31.SIGNIFICANT EVENTS
During the financial period,
(a) The Exchange and MESDAQ executed an agreement to merge the business operations of the 2 exchanges. Pursuant to themerger agreement, the business operations including all assets and liabilities of MESDAQ were transferred to the Exchangefor a cash consideration of RM1 on 14 March 2002.
(b) The Exchange acquired 11,426,708 ordinary issued and paid-up shares, representing 100% equity interest in MDEX from awholly owned subsidiary, KLSE TECH, for a cash consideration of RM10,570,097.
(c) The Exchange acquired additional 112,501 ordinary issued and paid-up shares, representing 45% equity interest in KLSE IS,a subsidiary for a cash consideration of RM12,000,000, making KLSE IS a wholly owned subsidiary of the Exchange.
(d) A wholly owned subsidiary, SCANS, acquired 8,000,0000 ordinary issued and paid-up shares, representing 100% equityinterest in MDCH from another wholly owned subsidiary, MDEX for a cash consideration of RM10,873,484.
(e) A wholly owned subsidiary, LFX, increased its issued and paid-up share capital from USD2,000,000 to USD3,000,000through the allotment of 1,900,000 new ordinary shares of USD1 each. The shares were fully subscribed by the Exchange,thus retaining the Exchange's 100% equity interest in LFX.
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
95
Annual Repor t 2002
(f) On 30 July 2001, the Exchange commenced on its initiative to demutualise, whereby the Exchange will be converted froma non-profit objective company mutually guaranteed by the stockbroking members into a commercially driven company witha shareholder base. To assist in the exercise, a consortium of advisers, led by McKinsey & Co, was engaged in November 2001.
The Exchange, assisted by the consortium of advisers, had developed an Integrated Demutualisation Plan for the demutualisedexchange, going forward, which was approved by the Committee Members on 28 May 2002. Subsequently, on 21 November2002, it was announced that the Minister of Finance has given its approval-in-principle to proceed with the demutualisation ofthe Exchange.
The conversion of the Exchange from a company limited by guarantee to a company limited by shares will be effected throughthe enactment of a Demutualisation Bill by the Parliament of Malaysia. The approval of the members of the Exchange will alsobe sought for the demutualisation exercise at an Extraordinary General Meeting to be convened.
32.KLSE COMPENSATION FUND
The financial statements of the KLSE Compensation Fund for the year ended 31 December 2002 are as attached and have beenaccounted for separately from all other properties of the Exchange as required by Section 61 of the Securities Industry Act, 1983(Amended 1997).
33.COMPARATIVE FIGURES
The financial year end of the Group and of the Exchange was changed from 30 June to 31 December. The current financialstatements are for the 18 month period from 1 July 2001 to 31 December 2002. Comparative amounts for the incomestatements, statements of changes in equity and cash flow statements are for the 12 month period from 1 July 2000 to 30 June2001.
The presentation and classification of items in the current financial period’s financial statements are consistent with the previousfinancial year except that certain comparative amounts have been adjusted as a result of a change in accounting policy asdisclosed in Note 2(c), Note 2(k)(i) and Note 27.
Comparatives are not disclosed for certain information relating to financial instruments as permitted by MASB 24 - FinancialInstruments: Disclosure and Presentation upon first application.
34.FINANCIAL INSTRUMENTS
(a) Financial Risk Management Objectives and Policies
The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for thedevelopment of the Group’s businesses whilst managing its interest rate, liquidity and credit risks. The Group operates withinclearly defined guidelines that are approved by the Committee and the Group’s policy is to not engage in speculativetransactions.
(b) Interest Rate Risk
The Group has no interest-bearing debt. However, the Group has substantial short and long term interest-bearing financialassets as at 31 December 2002. The investments in financial assets are not held for speculative purposes but have beenmostly placed in fixed deposits or invested in commercial papers. The information on maturity dates and effective interestrates of financial assets are disclosed in their respective notes.
(c) Liquidity Risk
The Group actively manages its operating cash flows and the availability of funding so as to ensure that all funding needs aremet. As part of its overall prudent liquidity management, the Group maintains sufficient levels of cash or cash convertibleinvestments to meet its working capital requirements. In addition, the Group strives to maintain available banking facilities ofa reasonable level to meet its operational needs
(d) Credit Risk
Credit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits and monitoringprocedures. The Group has in place detailed procedures to deal in all possible default situations. Trade receivables aremonitored on an ongoing basis via Group management reporting procedures. The Group does not have any significantexposure to any individual customer or counterparty nor does it have any major concentration of credit risk related to anyfinancial instrument.
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Kuala Lumpur Stock Exchange
34.FINANCIAL INSTRUMENTS (Contd.)
(e) Fair Values
The aggregate net fair values of financial assets and financial liabilities which are not carried at fair value on the balance sheetsof the Group and of the Exchange are represented as follows:
Group ExchangeCarrying Carrying Amount Fair Value Amount Fair Value
Note RM RM RM RM
Financial Assets
Loan stocks from subsidiary 9 - - 2,000,000 ^
Other investments
- unquoted private debt securities 10 212,555,281 217,555,528 89,174,621 90,389,200
Short term investments 15 161,847,087 166,958,412 161,847,087 166,958,412
Due from Compensation Funds 5,414,694 ^ 4,820,732 ^
Due from subsidiaries 16 - - 8,440,259 ^
Financial Liabilities
Due to subsidiaries 17 - - 3,539,151 ^
^ It is not practical to estimate the fair values of amounts due to/from subsidiaries and Compensation Funds due principally toa lack of fixed repayment term entered into by the parties involved. However, the Group does not anticipate the carrying amountsrecorded at the balance sheet date to be significantly different from the values that would eventually be received or settled.
Group ExchangeNominal Nominal Amount Fair Value Amount Fair Value
Note RM RM RM RM
Contingent liabilities 29 25,541,000 * 18,335,000 *
* It is not practicable to estimate the fair value of contingent liabilities reliably due to the uncertainties of timing, costs and eventualoutcome.
The following methods and assumptions are used to estimate the fair values of the following classes of financial instruments:
(i) Cash and Cash Equivalents, Trade and Other Receivables/Payables and Short Term Borrowings
The carrying amounts approximate fair values due to the relatively short term maturity of these financial instruments.
(ii) Other Investments and Short Term Investments
The fair value of MGS are estimated based on quoted market prices. The fair value of unquoted private debt securities isdetermined by reference to a reasonable estimate of fair value that has been calculated based on the indicative rates obtainedfrom third parties at the close of the business on the balance sheet date.
35.CURRENCY
All amounts are stated in Ringgit Malaysia.
Notes to the Financial Statements3 1 D e c e m b e r 2 0 0 2
97
Annual Repor t 2002
o f A n n u a l G e n e r a l M e e t i n g
Not iceNOTICE IS HEREBY GIVEN THAT the Twenty-sixth Annual General Meeting of the Exchange will be held at the KLSETheatrette, Lower Ground Floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur on Saturday, 10 May2003 at 11:30 a.m. to transact the following business:
1. To confirm -
(a) Minutes of the Twenty-fifth Annual General Meeting held on 10 November 2001;
(b) Minutes of the Extraordinary General Meeting held on 10 November 2001;
(c) Minutes of the Extraordinary General Meeting held on 8 February 2002; and
(d) Minutes of the Extraordinary General Meeting held on 19 December 2002.
2. To receive and adopt the report of the Committee, the Income and Expenditure Accounts for the year ended 31December 2002 and the Balance Sheet as at 31 December 2002 with Auditors’ Report thereon in respect of the KualaLumpur Stock Exchange and the Kuala Lumpur Stock Exchange Compensation Fund.
3. To elect two (2) Committee Members.
4. To elect a Deputy Chairman.
5. To elect Auditors and to authorise the Committee to fix their remuneration.
6. To transact any other business which may be properly transacted at an Annual General Meeting.
BY ORDER OF THE COMMITTEE
AZMAN SHAH BIN MD YAMAN
(LS No. 006901)
Company Secretary
Kuala Lumpur
18 April 2003
NOTE:
A. APPOINTMENT OF PROXY
RE: ARTICLES OF ASSOCIATION OF THE EXCHANGE
(1) ARTICLE 24.7
(a) in the case of a Voting Member, only one of its executive directors shall be entitled to attend and vote on its behalf at the general meeting and in theevent such executive director is unable to attend the general meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint aproxy to attend and vote on behalf of the Voting Member;
(b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstances referred to in Article 4.2(2) apply, suchMembers are entitled to appoint proxies to attend and vote on their behalf, respectively.
(2) ARTICLE 26.4(1)
A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.
B. RIGHTS OF VOTING MEMBER AND NON-VOTING MEMBER
(1) ARTICLE 4.1(1)
Every Voting Member shall:
(a) be entitled to appoint one *Dealing Member to represent itself at the Exchange;
* Dealing Member (Rule 2.3.1 and 2.3.2) refers to Executive Directors admitted as a Dealing Member and approved by the Exchange
(b) have the right to receive any notice of and to attend and to speak at all general meetings of the Exchange.
(2) ARTICLE 4.2
(1) Every Non-Voting Member shall have the right to receive any notice and to attend and to speak at all General Meetings of the Exchange.
(2) In addition to the rights conferred under Article 4.2(1) a Non-Voting Member shall also have the right to vote upon any resolution, which varies oraffects his rights or privileges as a Non-Voting Member under the Memorandum of Association or these Articles.
o f P r o x y / C e r t i f i c a t e o f R e p r e s e n t a t i o n
FormWe
of
being a Member of Kuala Lumpur Stock Exchange hereby appoint
of
as our proxy/representative to vote for us and on our behalf at the Twenty-sixth Annual General Meeting of the Exchange
to be held on Saturday, 10 May 2003 at 11:30 a.m. and at any adjournment thereof.
Made this day of 2003
Signature of Director/Attorney authorised to acton behalf of the Member
Common Seal of the Member affixed in the presence of the persons authorised by the Board of Directors
Before executing the Form of Proxy, please see the Explanatory Notes below.(To ensure receipt of the above by the Exchange,
you should telephone the Exchange afterwards to confirm withAzman Shah Md Yaman - Tel: 03-20717495
Marhani Hamzah - Tel: 03-20717327)
EXPLANATORY NOTESA. APPOINTMENT OF PROXY
RE: ARTICLES OF ASSOCIATION OF THE EXCHANGE
(1) ARTICLE 24.7
(a) in the case of a Voting Member, only one of its executive directors shall be entitled to attend and vote on its behalf at the general meeting and in theevent such executive director is unable to attend the general meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint aproxy to attend and vote on behalf of the Voting Member;
(b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstances referred to in Article 4.2(2) apply, suchMembers are entitled to appoint proxies to attend and vote on their behalf, respectively.
(2) ARTICLE 26.4(1)
A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.
B. RIGHTS OF VOTING MEMBER AND NON-VOTING MEMBER
(1) ARTICLE 4.1(1)
Every Voting Member shall:
(a) be entitled to appoint one *Dealing Member to represent itself at the Exchange;
* Dealing Member (Rule 2.3.1 and 2.3.2) refers to Executive Directors admitted as a Dealing Member and approved by the Exchange
(b) have the right to receive any notice of and to attend and to speak at all general meetings of the Exchange.
(2) ARTICLE 4.2
(1) Every Non-Voting Member shall have the right to receive any notice of and to attend and to speak at all general meetings of the Exchange.
(2) In addition to the rights conferred under Article 4.2(1) a Non-Voting Member shall also have the right to vote upon any resolution which varies oraffects his rights or privileges as a Non-Voting Member under the Memorandum of Association or these Articles.
C. INSTRUMENT APPOINTING PROXY/REPRESENTATIVE TO BE DEPOSITED
The instrument appointing a proxy/representative shall be deposited at the registered office of the Exchange not less than twenty four (24) hours before thetime for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote.