6 March 2002

A n n u a l

20

02

Report

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

2


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


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


Chief Operating OfficerDr Zaha Rina Zahari

General ManagerRaghbir Singh Bhart

Company SecretaryManoj Devadasan





RHB Bank Berhad

Hong Leong Bank Berhad

Registered OfficeMalaysia DerivativesExchange Berhad


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



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


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



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

3

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


Datuk Mohaiyani Shamsudin

Tan Kim Leong, JP


Dato’ Hj Megat Najmuddin KhasDato’ Seri (Dr) Hj Megat Khas




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




Alliance Bank Berhad

Southern Bank Berhad

Standard Chartered Bank (M) Berhad

Registered OfficeSecurities Clearing AutomatedNetwork Services Sdn Bhd


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



AuditorsPricewaterhouseCoopers



Citibank Berhad

RHB Bank Berhad

ABN Amro Berhad

HSBC Bank Malaysia Berhad

Registered OfficeMalaysian Derivatives ClearingHouse Bhd


Bukit Kewangan

50200 Kuala Lumpur

Tel: 03-20267099

Fax: 03-20263584

MALAYSIAN CENTRALDEPOSITORY SDN BHD (MCD) (Company No. 165570-W)



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







Alliance Bank Berhad

Registered OfficeMalaysian Central Depository Sdn Bhd


Bukit Kewangan

50200 Kuala Lumpur

Tel: 03-20262099

Fax: 03-20263719

4


KLSE TECHNOLOGY SDN BHD (KLSE TECH)(Company No. 213411-K)

Formerly known as KLOFFE Capital Sdn Bhd

Board of DirectorsDato' Mohammed Azlan Hashim

(Chairman)


Dato' Seri Hwang Sing Lue


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




Bank Utama (M) Berhad

Registered OfficeKLSE Technology Sdn Bhd


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


(Chairman)



Md Nor Ahmad

General ManagerKhamarul Baharain Sulaiman





Registered OfficeKLSE Information Services Sdn Bhd


Bukit Kewangan

50200 Kuala Lumpur

Tel: 03-20267099

Fax: 03-27324273

MALAYSIAN SHAREREGISTRATIONSERVICES SDN BHD(MSRS) (Company No. 378993-D)


(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





Registered OfficeMalaysian Share Registration Services Sdn Bhd


Bukit Kewangan

50200 Kuala Lumpur

Tel: 03-20267099

Fax: 03-20263736


KLSE PROPERTYMANAGEMENTSDN BHD (KPM)(Company No. 147792-H)


(Chairman)

Tan Kim Leong, JP


Md Nor Ahmad

Abdul Razak Mohd Amin

General ManagerAbdul Razak Mohd Amin





Registered OfficeKLSE Property Management Sdn Bhd


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)


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




Registered OfficeYayasan BSKL


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


DirectorAbdullah Naib





Registered OfficeResearch Institute of InvestmentAnalysts Malaysia


Bukit Kewangan

50200 Kuala Lumpur

Tel: 03-20267099

Fax: 03-20263701

5

Annual Repor t 2002


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.

8


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.

9

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

10


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

11

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

12


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

13

Annual Repor t 2002

Ahmad HizzadBaharuddinMDCH

Steven Lai Choon LimMDCH

Raghbir Singh BhartMDCH

Ng Chin LengMDCH

KhairussalehRamliMDCH

Noripah KamsoMDCH

14



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

15

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

16



Othman AbdullahYBSKL

Tan Sri Dato' DrAbdullah Sanusi HjAhmadYBSKL, RIIAM

Tan Sri Dato' DrSyed JalaluddinSyed SalimRIIAM

17

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

18


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

19

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

20


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

21

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

22



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

23

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

24



KPM RIIAM

KLSE IS MSRS

KhamarulBaharainSulaimanGeneral Manager

Abdul NasirAhmad DaudGeneral Manager

Abdul RazakMohd AminGeneral Manager

Azmi OthmanManager, BuildingManagementServices

Abdullah NaibDirector

25

Annual Repor t 2002

26


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)


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

27

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)


3. Abdul Kadir Hj Md Kassim



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)



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


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


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


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


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


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


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



(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:


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



(8) Two individuals were admitted as Non-Dealing Members of the Exchange(Individual Shareholder), viz:


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:


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:


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)


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



(13) Changes to Member Companies' Business Addresses - New Branch Offices andElectronic Access Facilities with Permitted Activities (EAF-PA) (Contd.)


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



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





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



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





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



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





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



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


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


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



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


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


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


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


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


REGISTERED OFFICE


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


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


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


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


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


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


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


Repor t o f t h e A u d i t o r s

64


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.

66


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

67

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


68


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


69

Annual Repor t 2002


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

70


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


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


72


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.

73

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.

74


(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.


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.

76



(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

77

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


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 - -


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


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


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


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


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


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.

82


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.


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


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.


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


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


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.

88


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).


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


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.


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.

92


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


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

94


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.


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.

96


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.


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.

This page has been intentionally left blank.

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.

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