PLUS 2003 Annual Report - Notes To The Financial Statements

NOTES TO THE FINANCIAL STATEMENTS 1/53
31 December 2003
1 CORPORATE INFORMATION
The principal activities of the Company are investment holding and provision of expressway operation services.
There have been no significant changes in the nature of the principal activities during the financial year.
Its sole and wholly-owned subsidiary, Projek Lebuhraya Utara-Selatan Berhad (“PLUS”) is involved in the opera-
tion and maintenance of a tolled expressway network comprising the North-South Interurban Toll Expressway, the
New Klang Valley Expressway, and a section of Federal Highway Route 2 between Subang and Klang in Peninsular
Malaysia.
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the
Main Board of the Malaysia Securities Exchange Berhad. The registered office of the Company is located at 2nd
Floor, Bangunan MCOBA, 42 Jalan Syed Putra, 50460 Kuala Lumpur.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of
the Directors on 27 February 2004.
2 AWARD OF CONCESSION TO PLUS

The Government of Malaysia (“the Government”) and United Engineers (Malaysia) Berhad (“UEM”) entered into
a Concession Agreement dated 18 March 1988 in connection with the North-South Interurban Toll Expressway,
the New Klang Valley Expressway and the Federal Highway Route 2 projects.
Subsequently, UEM and PLUS entered into a Novation Agreement with the Government dated 20 July 1988 where-
by, with the approval of the Government, UEM assigned its rights and transferred its liabilities and obligations
under the Concession Agreement to PLUS.
PLUS was incorporated in 1986 and under the terms of a concession awarded by the Government of Malaysia, has
been involved in the construction of and improvements to the expressway network, its maintenance, and toll road
operations.
On 8 July 1999, PLUS entered into a Supplemental Concession Agreement (“SCA”) with the Government for an
extension of the Concession Period to 31 May 2030. Additionally, toll rate structures were revised and toll revenue
sharing arrangements were established between the parties.
On 11 May 2002, PLUS entered into a Second Supplemental Concession Agreement (“SSCA”) with the Govern-
ment whereby toll rate structures were further revised for the remaining period of the Concession Agreement and
toll compensation and set-off arrangements were established between the parties. The new toll rate structures
are as follows:
31 December 2003
• AWARD OF CONCESSION TO PLUS cont
i increase of Class 1 toll rate by 10% from 11.24 sen/km to 12.36 sen/km, which will be in force from 1 January
2002 until 31 December 2004;
ii scheduled increases of Class 1 toll rate by 10% every 3 years thereafter.
Toll rates for other classes of vehicles are determined based on pre-set factors by reference to rates applicable to
Class 1 vehicles.
Details of the compensation and set-off arrangement and other relevant matters in relation to PLUS agreeing to
the lower toll rate structures are set out in Note 3, ‘Debt Restructuring, Revised Toll Rates, Tax Exempt Status, Toll
Compensation Arrangement and Flotation Scheme’.
3 DEBT RESTRUCTURING, REVISED TOLL RATES, TAX EXEMPT STATUS, TOLL COMPENSATION
ARRANGEMENT AND FLOTATION SCHEME
PLUS’ debt restructuring scheme and flotation scheme were preceded by agreements with the Government invol-
ving revised toll rate structures, its tax exempt status and toll compensation arrangements. These are described
in the following sections.
a Revised Toll Rate Structures

In consideration of PLUS agreeing to the revised toll rate structures applicable from 1 January 2002 (details
of which are set out in Note 2 above) the Government agreed to the following:
i to waive PLUS’ obligation to pay the interest accrued to 1 January 2002 amounting to RM1,729.22 million
on its Government Support Loan;
ii to waive PLUS’ obligation to pay interest on the remaining principal amount of RM750 million on the
Government Support Loan, after (i) above; and
iii to address the manner in which the Government would discharge its liability in respect of the amount of
compensation due that would arise in each of the remaining Concession Years; such compensation would
arise as the new toll rates which took effect from 1 January 2002 are lower than the toll rates contem-
plated in the SCA previously entered into; and the arrangements have been formalised through the SSCA,
and in the manner described in (c) below, ‘Toll Compensation Arrangements’.
PLUS entered into a Third Supplemental Support Loan Agreement with the Government on 23 May 2002 in
connection with the exemption from the payment of interest on the Government Support Loan, as described
in (i) and (ii) above.
31 December 2003
• DEBT RESTRUCTURING, REVISED TOLL RATES, TAX EXEMPT STATUS,
TOLL COMPENSATION ARRANGEMENT AND FLOTATION SCHEME cont
b Tax Exempt Status

Under the Toll Compensation Arrangements, the Government agreed to grant PLUS tax exempt status for a
period of five consecutive years from 2002 to 2006. The exemption applies to PLUS’ ‘Adjusted Income’ from
all sources.
Pursuant to the above, the Minister of Finance has, on 25 June 2003, made an order which may be cited as
Income Tax (Exemption) (No. 34) Order 2003 (“Order”), exempting PLUS from payment of income tax in respect
of its adjusted income from all sources from the year of assessment 2002 until the year of assessment 2006.
c Toll Compensation Arrangements

Under the toll compensation arrangements pursuant to the SSCA, compensation recoverable from the Govern-
ment for the effects of imposing toll rates lower than those previously agreed shall be adjusted for the
following:
i deduction for the notional tax on dividends that PLUS will declare and pay (if any) from the tax exempt
profits earned during the five year tax-exempt period from 2002 to 2006 referred to in (b) above;
ii deduction for interest that would have been payable to the Government on the Government Support Loan,
had the Government not waived PLUS from its obligation to pay such interest;
iii set-off of PLUS’ income tax liabilities against such compensation due to PLUS after the deductions
referred to in (i) and (ii) above; and
iv set-off of any Toll Sharing Amount due to the Government against the resultant from (iii) above.
Under the SSCA, in any Concession Year after the tax-exempt period, if there is any tax amount owing by PLUS
to the Government after taking into consideration the adjustments referred to in (i), (ii) and (iii) above, PLUS
shall pay such tax amount owed by it to the Government in cash.
The SSCA provides that the payment of such tax amount shall not include any toll sharing to be paid to the
Government (if applicable), which shall continue to be carried forward for utilisation against future toll com-
pensation amounts. Upon expiry of the Concession Period, any amounts of tax payable and toll sharing amounts
which have not been utilised under the compensation arrangements referred to above are to be paid by PLUS
to the Government. However, if there are any amounts due from the Government upon expiry of the Concession
Period, such amounts are to be unconditionally waived by PLUS.
31 December 2003
In the event that the Government imposes a toll rate which is lower than the toll rates stated in the SSCA for
any Concession Year, the SSCA provides that the amount of further compensation arising will be paid in full.
Notwithstanding such compensation, the other toll compensation arrangements pursuant to the SSCA will
remain in effect.
d Debt Restructuring and Flotation Scheme

On 4 April 2002, PLUS submitted an application to the Securities Commission for the restructuring of its debts
(“Debt Restructuring”) and for an initial public offering (“Flotation Scheme”) via a newly incorporated company,
PLUS Expressways Berhad (“PLUS Expressways”). The Debt Restructuring and the Flotation Scheme were
completed on 31 May 2002 and 17 July 2002 respectively.
Debt Restructuring
The Debt Restructuring involved inter alia:
i a renounceable rights issue of ordinary shares, whereby 316.25 million new PLUS shares of RM1.00 each
were offered to UEM, its then immediate holding company, at an issue price of RM7.59 per share. UEM
renounced its rights to Khazanah Nasional Berhad and upon subscription by the party, raised approximately
RM2,400 million;
ii the conversion of all the Redeemable Convertible Bonds (“RCBs”) in issue into 214.03 million new
ordinary shares in PLUS at a converted price of RM8.39 per share based on the values prescribed in the
trust deed governing the RCBs;
iii the settlement of the UEM Bond, sale of the Renong SPV Bond to UEM, and full settlement of a loan
previously extended to UEM, for aggregate proceeds of RM3,600 million; as a result, PLUS recognised a
one-time exceptional loss of RM4,239.5 million on 31 May 2002, and the RM3,600 million consideration
received was utilised for part-settlement of PLUS Bonds then in issue; in conjunction with the disposal of
Renong SPV Bond, PLUS transferred its special share held in Renong Debt Management Sdn Bhd, the
issuer of Renong SPV Bond, to UEM;
iv the issuance of RM5,100 million Bai Bithaman Ajil Islamic Debt Securities (“BAIDS”) and utilisation of
these proceeds to fully settle the outstanding balances on the Commercial Loans of RM1,417.2 million
and Serial Bonds of RM568.0 million, and the remaining part settle of PLUS Bonds in issue of RM3,114.8
million;
v the conversion of 368,552,941 Non-cumulative Convertible Preference Shares of PLUS into an equivalent
number of ordinary shares of RM1 each;
31 December 2003
vi extinguishment of special rights attached to the Special Share issued by PLUS, such that, it would rank
pari passu with the other ordinary shares of PLUS in issue;
vii approval by the High Court for the elimination of accumulated losses of RM3,185.0 million against the
share premium account arising from the issue of ordinary shares referred to in (i) and (ii) above;
viii an internal reorganisation by which PLUS Expressways acquired the entire issued and paid up share
capital of PLUS subsequent to PLUS’ completion of the Debt Restructuring, and in exchange issued new
PLUS Expressways ordinary shares as consideration. The share exchange involved the issue of 4,999.99
million ordinary shares of RM0.25 each in PLUS Expressways in exchange for 1,548.83 million ordinary
shares in PLUS. Accordingly, PLUS Expressways’ issued share capital had increased from 2 ordinary
shares of RM0.25 each to 5,000 million ordinary shares of RM0.25 each. Subsequent to the completion of
the share exchange, PLUS became a wholly-owned subsidiary of PLUS Expressways;
Other than the issue of BAIDS, the Debt Restructuring described above was effected via a Scheme of Arrange-
ment under Section 176 of the Companies Act 1965.
Flotation Scheme
The Flotation Scheme involved the following:
ix The sale by UEM of 630,000,000 ordinary shares of RM0.25 each in PLUS Expressways to Malaysian and
foreign institutional investors at an institutional offering price of RM2.55 per share determined by way of
book-building;
x The non-renounceable restricted sale by UEM of 125,641,000 ordinary shares of RM0.25 each in PLUS
Expressways to previous UEM Shareholders on the basis of one PLUS Expressways ordinary share for
every four ordinary shares of RM0.50 each previously held in UEM, at the restricted offering price of
RM2.295 per share; and
xi The sale by UEM of 174,359,000 ordinary shares of RM0.25 each in PLUS Expressways at the retail offering
price of RM2.295 per share, comprising:
aa 73,000,000 ordinary shares of RM0.25 each in PLUS Expressways, to eligible employees and Directors
of UEM Group, Renong Group and Khazanah Nasional Berhad; and eligible users of ‘Touch ’n Go’ (the
electronic toll payment system used for the expressways); and
31 December 2003
bb 101,359,000 ordinary shares of RM0.25 each in PLUS Expressways (and any shares not applied for
under (aa) above), to Malaysian retail investors, of which a minimum of 30% was set aside for
Bumiputra applicants.
Upon completion of the flotation scheme, PLUS Expressways was officially listed on the Main Board of the
Malaysia Securities Exchange Berhad (“MSEB”) on 17 July 2002.
e Issue of RM2,260 million nominal value of Bai Bithaman Ajil Serial Bonds
On 20 December 2002, PLUS issued RM2,260 million nominal value of Bai Bithaman Ajil Serial Bonds (“BBA
Serial Bonds”) on a bought-deal basis, and raised net proceeds of RM1,148.93 million to fully redeem the
outstanding Link Bonds in issue.
4 SIGNIFICANT ACCOUNTING POLICIES

a Basis of Accounting and Preparation of the Financial Statements
The financial statements of the Group and of the Company have been prepared under the historical cost con-
vention and comply with applicable Approved Accounting Standards issued by the Malaysian Accounting
Standards Board (“MASB”) and the provisions of the Companies Act 1965.
During the financial year, the Group and the Company adopted MASB 28 (Discontinuing Operations) and
MASB 29 (Employee Benefits) for the first time.
The adoption of MASB 28 has not given rise to any adjustments to the opening balances of retained profits
of the prior year and the current year or to changes in comparatives.
The adoption of MASB 29 resulted in the Group and the Company making provision for obligations in respect
of short-term employee benefits in the form of accumulated compensated absences. These obligations were
not provided for prior to the adoption of MASB 29. The cumulative provision made amounted to approximately
RM1.941 million, and as the effect on the financial statements taken as a whole is not significant, it has been
recognised entirely in the cur rent year results without a prior year adjustment.
In addition to the above, the preparation of the financial statements of the Group for the year ended 31
December 2003 has also taken into account of the re-assessment of the computations applied in arriving at
estimates of accumulated amortisation of Expressway Development Expenditure (“EDE”), details of which are
disclosed in Note 4(e).
The above re-assessments did not, however, have any effects on the comparative in respect of the year ended
31 December 2002.
31 December 2003
• SIGNIFICANT ACCOUNTING POLICIES cont
b Basis of Consolidation
The consolidated financial statements include the financial statements of the Company and PLUS for the year
ended 31 December 2003. The consolidated financial statements have been prepared using the merger
method of accounting as the combination between PLUS Expressways and PLUS meets the relevant criteria
set out in the MASB 21 “Business Combination”, thus depicting the combination of these entities as if they
had been in combination for the entire period.
A subsidiary is a company in which the Group has equity interest and where it has power to exercise
control over the financial and operating policies so as to obtain benefits therefrom.
Intragroup transactions, balances and resulting unrealised gains are eliminated on consolidation and the
consolidated financial statements reflect external transactions only. Unrealised losses are eliminated on
consolidation unless cannot be recovered.
c Borrowing Costs
Borrowing costs attributable to the acquisition, construction or production of an asset during periods when
activities necessary to prepare the asset for its intended use are in progress, are capitalised as a component
of the cost of the asset. Such capitalisation ceases when substantially all activities necessary to prepare the
asset for its intended use are complete.
Where the carrying amount, inclusive of capitalised borrowing costs, if applicable, of an asset exceeds its
recoverable amount, such excess is written down or adjusted for as a provision for impairment, through an
appropriate charge to the income statement.
d Property, Plant and Equipment, and Depreciation

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Depreciation is provided for on a straight line basis over the estimated useful lives of the property, plant and
equipment. The annual rates of depreciation are as follows:
31 December 2003
Aircraft 12
Motor Vehicles 20
Furniture and Fittings 20
Office Equipment 20
Computers 20
Telecommunication System 20
Operation Tools and Equipment 20
Buildings 2
e Concession Assets
Items classified as Concession Assets comprise Expressway Development Expenditure (“EDE”) and Heavy
Repairs.
i Expressway Development Expenditure

Expressway Development Expenditure (“EDE”) comprises development and upgrading expenditure (includ-
ing interest charges relating to financing of the development) incurred in connection with the Concession.
In previous years, the amortisation formula applied in the preparation of the financial statements for the
year to arrive at accumulated amortisation as at the balance sheet date was as follows:
Cumulative Toll Revenue Aggregate of Net Book Value

to date wef 1/1/1999 of EDE as at 1/1/1999
x and cumulative subsequent
Projected Total Toll Revenue additions to date at cost
from 1/1/1999 to 31/5/2030
The aggregate of the unamortised balance on EDE as at 31 December 1998 and additions incurred there-
after were amortised by annual charges recognised in the income statement annually from 1999 onwards
such that the accumulated amortisation was based on the proportion that toll revenues for the period from
1 January 1999 to the end of the accounting period represented as a percentage of the projected toll
revenues for the period from 1 January 1999 to the expiry of the extended Concession Period. The resul-
tant was added to the balance of the accumulated amortisation brought forward as at 1 January 1999,
to arrive at the accumulated amortisation as at the balance sheet date.
31 December 2003
It is the Group’s accounting policy to normally account for changes in estimates which affect the calcula-
tion of accumulated amortisation, in the amortisation for the financial period in which the change arises.
However, the changes that arose with the implementation of the previous revision in toll rate structure and
debt restructuring scheme in 1999 were considered fundamental changes to the relationships between
revenues and costs associated with the Concession. The amortisation formula was, therefore, revised on
a prospective basis with effect from 1 January 1999 as described above.
The projected toll revenues used for the purposes of the amortisation calculations for the year ended 31
December 2002 were based on the aggregate of the actual revenues for Concession Years 1999 to 2002
and base case traffic volume projections for Concession Period ending May 2030 prepared by independent
Traffic Consultants in January 2002 using the toll rate structures described in Note 2. In addition to the
projected toll revenue, PLUS also incorporated the projected toll compensation revenue to the end of the
concession period arising from the toll compensation arrangements described in Note 3 in the amount of
projected toll revenue.
In the preparation of these financial statements for the year ended 31 December 2003, PLUS re-assessed
the computations applied in arriving at estimates of accumulated amortisation of EDE, and the following
were undertaken:
I PLUS re-assessed the useful lives of items classified within EDE, and identified items that were
estimated to have useful lives that would expire before the end of the Concession Period. Whereas
these items had previously been amortised within the total of items classified as EDE, PLUS has re-
computed their accumulated amortisation based on the re-estimated useful lives.
II The accumulated amortisation of EDE had, to 31 December 2002, been computed as described above.
In conjunction with the re-assessment of accumulated amortisation of EDE, PLUS applied to the
remaining amount of EDE (i.e. after re-classification of assets referred to in (I) above) the proportion
of toll revenues based on cumulative toll revenues from the commencement of the Concession in 1988
to 31 December 2002, as a percentage of total projected toll revenue for the entire Concession Period,
i.e. from 31 May 1988 to 31 May 2030.
III PLUS also re-assessed accumulated amortisation amounts that had been accounted for previously for
accelerated amortisation of certain stretches of the Expressways, and, in light of the charges recognised
in the income statement for damages from the Bukit Lanjan rockfall, wrote back the accumulated
accelerated amortisation to 31 December 2003.
31 December 2003
IV Further to the re-assessments described in (I) and (II) above, PLUS also obtained from independent
Traffic Consultants a revised set of traffic volume projections in October 2003, and the base-case
projections arising have been used for application in the accumulated amortisation computations for
these financial statements to 31 December 2003.
The effects of the above, which have been incorporated in the financial statements for the year ended 31
December 2003 are summarised as follows:
Additional accumulated amortisation/(write back) of EDE arising from: Charge/

(Write
back)
RM’000
- Re-assessment of useful lives of assets, referred to in (I) above, and re-computation of accumulated
amortisation based on proportion of toll revenues from commencement of Concession to 31 December
2002 as a percentage of total projected toll revenues for the entire Concession period. 4,345
- Write back of accelerated accumulated amortisation to 31 December 2003 net of net book value of
Bukit Lanjan slope written off, referred to in (III) above. (37,597)
- Additional accumulated amortisation to 31 December 2003 arising from revised traffic and toll
revenue projections obtained in October 2003. 29,450
As disclosed in Note 27, the amortisation charge in respect of Concession Assets (excluding Heavy Repairs)
based on the previous traffic volume and toll revenue projections amounted to RM120,863,000, and the
additional accumulated amortisation to 31 December 2003 arising from the revised October 2003 projec-
tions amounted to RM29,450,000. Within this additional accumulated amortisation is the element of
additional amortisation attributable to the year ended 31 December 2003 (i.e. excluding cumulative
effects to 31 December 2002) of RM2,437,000.
Therefore, with effect from 1 January 2003, the amortisation formula in respect of EDE applied in the
preparation of the financial statements to the end of each financial period has been revised to the following:
Cumulative Toll Revenue to date from the

Commencement of the Concession in 1988 Cumulative Actual EDE
x to date at cost
Projected Total Toll Revenue of
the Concession from 1988 to 2030
31 December 2003
The projected toll revenues used for the purposes of the amortisation calculations are based, as stated
above, on the base case traffic volume projections prepared by independent traffic consultants. The
projections include the toll rate structures described in Note 2. In addition, PLUS has incorporated the
projected toll compensation revenues to the end of the Concession Period arising from the toll compen-
sation arrangements described in Note 3 in the amount of projected toll revenue.
ii Other Concession Assets

The Concession Assets for which estimates of useful lives indicate expiry before the end of the
Concession Period have, as stated in (i) above, been re-classified within Concession Assets to ‘Other
Concession Assets’. These assets comprise toll equipment, video surveillance equipment, telecommuni-
cation networks, centralised lighting, and toll operation computer hardware and software. Based on the
revised estimates of their useful lives, the annual amortisation in respect of these assets is computed on
a straight line at the following rates:
%
Software and computers 12.5

Others 10.0
iii Heavy Repairs

Heavy repairs relate to costs incurred to repair bridges, slopes and embankments, rectification of settle-
ments and pavement rehabilitation of medium and high traffic sections along the Expressways. The costs
of heavy repairs are amortised on a straight line basis over 7 years commencing from the date incurred,
this being the anticipated economic life of such works.
f Impairments
The carrying amounts of the Group’s and of the Company’s assets and inventories are reviewed at each
balance sheet date to determine whether there is any indication of impairment. If any such indication exists,
the asset’s recoverable amount is estimated and an impairment loss is recognised whenever the recoverable
amount is less than the carrying amount of the asset. The impairment loss is recognised in the Income
Statement immediately.
All reversals of impairment losses are recognised as income immediately in the Income Statement. An impair-
ment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment had been recognised.
31 December 2003
g Income Tax
Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the expected
amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax
rates that have been enacted at the balance sheet date.
Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In prin-
ciple, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are
recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent
that it is probable that taxable profit will be available against which the deductible temporary differences,
unused tax losses and unused tax credits can be utilised which give rise to net deferred tax benefits, these
are recognised when it is probable that taxable profits will be available in the future against which the
deferred tax benefits can be utilised.
h i Provisions
Provisions are recognised when it is probable that an outflow of resources embodying economic benefits
will be required to settle present obligation (legal or constructive) as a result of a past event and a reli-
able estimate can be made of the amount of the obligation.
ii Provision for Retirement Benefits

Provision for employee retirement benefits made in the financial statements is in accordance with prede-
termined obligations of PLUS for personnel whose employment contracts had been transferred in 1988
from the previous Malaysian Highway Authority, pursuant to the Concession Agreement.
The scheme is unfunded and the provision represents full liabilities based on the length of service of the
personnel concerned, at contracted rates.
The Group also contributes to the statutory Employees Provident Fund in accordance with applicable statu-
tory rates.
i Deferred Liabilities
Fees recovered from third parties as advance payments of future maintenance expenditure, in consideration for
right-of-way access granted by PLUS, are classified as deferred liabilities, and subsequently incurred amounts
are set off against such deferred liabilities.
31 December 2003
j Foreign Currencies
Transactions denominated in foreign currencies during the year are recorded in Ringgit Malaysia at exchange
rates ruling at the time of the transactions or at contracted rates. Foreign currency denominated monetary
assets and liabilities are reported in Ringgit Malaysia at exchange rates which approximate those ruling at
the balance sheet date, or at contracted rates where applicable. Gains or losses on exchange are dealt with
in the income statement.
k Short Term Investments

Short term investments in equity shares are stated at the lower of cost and market value.
l Cash Flow Statement

The cash flow statement, which is prepared using the indirect method, classifies changes in cash and cash
equivalents according to operating, investing and financing activities. The Group does not consider any of its
assets other than deposits with licensed financial institutions and cash and bank balances to meet the defi-
nition of cash and cash equivalents. The use of the cash and cash equivalent balances, however, is subject to
the restrictions set out in Note 24.
m Revenue Recognition
i Investment Income
Investment income is recognised when the right to receive is established and no significant uncertainty
exists as regard to its recovery.
ii Revenue from Services

Revenue from services rendered is recognised net of service taxes if applicable, and discounts as and when
the services are performed.
iii Toll Compensation

Pursuant to the Concession Agreement, the Government of Malaysia reserves the right to restructure or
to restrict the imposition of unit toll rate increases by PLUS, and in such event, the Government shall com-
pensate PLUS for any reduction in toll revenue, subject to negotiation and other considerations that the
Government may deem fit. Toll compensation for any Concession Year is recognised in the financial state-
ments as revenue when recovery is probable and the amount that is recoverable can be measured
reliably. The amount of toll compensation accrued and recognised in the income statement for the year
has been estimated after taking into consideration the effects of the arrangements described in Note 3 (c).
31 December 2003
n Bai Bithaman Ajil Islamic Debt Securities (“BAIDS”)

The BAIDS are bonds issued in accordance with the Islamic finance concept of Bai Bithaman Ajil. In accor-
dance with such concept, PLUS sold certain assets to a trustee, and repurchased them back at the same price
together with an agreed profit margin. PLUS’ payment of the purchase price is deferred in accordance with
the maturities of the BAIDS, whilst the profit element is paid half-yearly.
BAIDS are initially recognised at cost, being the fair value of the consideration received. After initial recogni-
tion, the profit element attributable to the BAIDS in each period is recognised as an expense at a constant
rate to the maturity of each series respectively. Further details of the BAIDS in issue are disclosed in Note 20.
o Bai Bithaman Ajil Serial Bonds (“BBA Serial Bonds”)

The BBA Serial Bonds are bonds issued in accordance with the Islamic finance concept of Bai Bithaman Ajil.
In accordance with such concept, PLUS sold certain assets to the subscribers, and repurchased them at the
same price plus an agreed profit margin. PLUS’ payments are deferred in accordance with the maturities of
the BBA Serial Bonds.
BBA Serial Bonds were initially stated at cost, being the fair value of the consideration received. The profit
element on the BBA Serial Bonds is recognised as an expense and accreted to the principal amount at a
constant rate to the maturity of each series respectively. Further details of BBA Serial Bonds are disclosed in
Note 21.
p Financial Instruments
Financial assets and financial liabilities carried on the balance sheet include cash and bank balances, trade
and other receivables and payables, borrowings and bonds. The accounting policies on recognition and
measurement of these items are disclosed within this note, ‘Significant Accounting Policies’.
Financial instruments are classified as liabilities or equity in accordance with the substance of the respective
contractual arrangements. Interest, dividends, gains and losses relating to a financial instrument classified as
a liability, are reported as expense or income. Distributions to holders of financial instruments classified as
equity are charged directly to equity. Financial instruments are offset when the Group has a legally enforce-
able right to offset and intends to settle either on a net basis or to realise the asset and settle the liability
simultaneously.
31 December 2003
5 CONCESSION ASSETS
Group Group Company Company

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Expressway Development Expenditure (EDE) 8,257,972 8,377,966 - -

Heavy Repairs 332,889 276,081 - -
Other Concession Assets 84,739 - - -
8,675,600 8,654,047 - -
31 December 2003
• CONCESSION ASSETS cont
Details of Concession Assets are as follows:
Expressway
Develop- Other
ment Heavy Concession 2003 2002
Expenditure Repairs Assets Total Total
RM’000 RM’000 RM’000 RM’000 RM‘000
Cost
At 1 January 9,250,599 568,791 - 9,819,390 9,582,573
Additions 81,806 131,908 - 213,714 236,817
Written off (14,780) - - (14,780) -
Reclassifications (386,601) - 386,601 - -
At 31 December 8,931,024 700,699 386,601 10,018,324 9,819,390
Accumulated Amortisation
At 1 January 872,633 292,710 - 1,165,343 1,035,513
Additions 84,726 75,100 18,657 178,483 129,830
Written off (1,102) - - (1,102) -
Reclassifications (283,205) - 283,205 - -
At 31 December 673,052 367,810 301,862 1,342,724 1,165,343
Net Book Value at 31 December 2003 8,257,972 332,889 84,739 8,675,600
Net Book Value at 31 December 2002 8,377,966 276,081 - 8,654,047
As mentioned in Note 4(e), with effect from 1 January 2003, ‘Expressway Development Expenditure’ under
Concession Assets have been re-classified into EDE and Other Concession Assets.
NOTES TO THE FINANCIAL STATEMENTS
17/53
31 December 2003
6 PROPERTY, PLANT AND EQUIPMENT
Group Furniture,
Fittings,
Telecom-
munication Operation Capital
and Office Motor Tools and Work in
Equipment Aircraft Vehicles Computers Equipment Buildings Progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2003 23,999 8,541 21,289 23,328 6,465 3,843 - 87,465
Additions 899 4,636 3,836 3,296 66 - 246 12,979
Disposals - - (929) - - - - (929)
Written off (812) - (152) (287) - - - (1,251)
At 31 December 2003 24,086 13,177 24,044 26,337 6,531 3,843 246 98,264
Accumulated Depreciation
At 1 January 2003 20,928 1,181 13,863 19,261 6,144 391 - 61,768
Charge for the year 1,758 1,355 2,246 1,757 258 77 - 7,451
Disposals - - (905) - - - - (905)
Written off (798) - (152) (287) - - - (1,237)
At 31 December 2003 21,888 2,536 15,052 20,731 6,402 468 - 67,077
Net Book Value at 31 December 2003 2,198 10,641 8,992 5,606 129 3,375 246 31,187
18/53
31 December 2003
• PROPERTY, PLANT AND EQUIPMENT cont
Group Furniture,
Fittings,
Telecom-
Equipment Aircraft Vehicles Computers Equipment Buildings Progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2002 23,587 8,541 17,846 35,284 6,480 3,843 - 95,581
Additions 726 - 5,956 567 - - - 7,249
Disposals (2) - (2,481) - - - - (2,483)
Written off (312) - (32) (12,523) (15) - - (12,882)
At 31 December 2002 23,999 8,541 21,289 23,328 6,465 3,843 - 87,465
At 1 January 2002 18,674 91 14,357 29,564 5,683 314 - 68,683
Charge for the year 2,564 1,090 2,019 2,217 476 77 - 8,443
Disposals (1) - (2,481) - - - - (2,482)
Written off (309) - (32) (12,520) (15) - - (12,876)
At 31 December 2002 20,928 1,181 13,863 19,261 6,144 391 - 61,768
Net Book Value at 31 December 2002 3,071 7,360 7,426 4,067 321 3,452 - 25,697
19/53
31 December 2003
• PROPERTY, PLANT AND EQUIPMENT cont
Company Furniture,
Fittings,
Telecom-
Equipment Vehicles Computers Equipment Progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2003 - - - - - -
Additions 608 5,989 3,384 87 246 10,314
At 31 December 2003 608 5,989 3,384 87 246 10,314
At 1 January 2003 - - - - - -
Charge for the year 20 163 110 3 - 296
At 31 December 2003 20 163 110 3 - 296
Net Book Value at 31 December 2003 588 5,826 3,274 84 246 10,018
Net Book Value at 31 December 2002 - - - - - -

31 December 2003
7 INVESTMENT IN SUBSIDIARY
Company Company
2003 2002
RM’000 RM’000
Investment in subsidiary, at cost 1,250,000 1,250,000
The subsidiary, which is incorporated in Malaysia, is as follows:
Name Principal Activity Effective Equity Interest

2003 2002
Projek Lebuhraya Construction, operation and maintenance of the tolled North-South 100% 100%
Utara-Selatan Berhad Interurban Toll Expressway, New Klang Valley Expressway and
a section of the Federal Highway Route 2.
The investment is stated at cost in the Company’s financial statements. Cost reflects the nominal value of shares
issued by the Company for the acquisition.
8 FUTURE INCOME TAX BENEFIT/ DEFERRED TAX LIABILITY

The provision for future income tax benefit is analysed as follows:

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Unabsorbed tax losses 178,389 178,389 - -

Unabsorbed capital allowances 1,007,065 1,007,065 - -
Timing differences on Expressway Development Expenditure (1,032,694) (1,032,694) - -
Other timing differences (82,438) (82,438) - -
70,322 70,322 - -
The provision for deferred tax liability is as follows:

Other timing differences (734) - (734) -
31 December 2003
9 TOLL COMPENSATION RECOVERABLE FROM THE GOVERNMENT OF MALAYSIA
Group Group
2003 2002
RM’000 RM’000
Toll compensation revenue 432,535 294,973

Less: Accrual for toll sharing (9,543) (8,077)
422,992 286,896
The amount of toll compensation recoverable and the set-off of the toll sharing amount are based on the toll
compensation arrangements as described in Note 3(c).
10 SUNDRY RECEIVABLES, DEPOSITS AND PREPAYMENTS

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Sundry receivables 12,521 6,825 194 -

Less: Allowance for doubtful debts (1,923) (2,314) - -
10,598 4,511 194 -

Deposits and prepayments 15,437 5,193 1,137 -
26,035 9,704 1,331 -

31 December 2003
11 HOLDING, SUBSIDIARY AND RELATED COMPANIES

The Directors regard UEM, which is incorporated in Malaysia and owns 46.2% of the Company’s equity as at
31 December 2003, as immediate holding company. The intermediate holding company is Syarikat Danasaham
Sdn Bhd and the ultimate holding company is Khazanah Nasional Berhad, both of which are incorporated in
Malaysia. Khazanah Nasional Berhad is wholly-owned by the Minister of Finance Inc., a body corporate which
was incorporated under the Minister of Finance (Incorporation) Act 1967.
i Amount owing to immediate holding company

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Amount owing to immediate holding company 17,592 24,334 70 109

Less: Repayable after twelve months (6,885) (6,885) - -
Repayable within twelve months 10,707 17,449 70 109
The amount owing to immediate holding company is trade in nature except for RM70,000 (2002: RM109,000)
which is non trade in nature.
The amount owing to UEM is non-interest bearing. The long-term portion of the amount owing to UEM of
RM6,884,880 is payable only after PLUS has repaid all amounts borrowed from financial institutions and the
Government of Malaysia.
ii Subsidiary
The amount owing from/(to) subsidiary is non trade in nature, non-interest bearing and has no fixed term of
repayment.
iii Related companies

Related companies in these financial statements refer to members of Khazanah Nasional Berhad group of com-
panies. The amounts owing from/(to) related companies are trade in nature, non-interest bearing and have no
fixed terms of repayment.
31 December 2003
12 SHORT TERM INVESTMENTS

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Quoted shares at cost 1,164 - - -

Less: Provision for diminution in value (102) - - -
1,062 - - -
Quoted shares at market value 1,062 - - -
13 SHORT TERM DEPOSITS WITH LICENSED BANKS, CASH AND BANK BALANCES

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Islamic short term deposits 1,041,839 802,022 - -

Conventional short term deposits 202,567 122,767 22,889 -
Short term deposits with licensed banks 1,244,406 924,789 22,889 -

Cash and bank balances 6,031 5,268 232 1
1,250,437 930,057 23,121 1
The use of the balances is subject to the restrictions set out in Note 24, ‘Security Arrangements of Borrowings
and Bonds’.
31 December 2003
14 SUNDRY PAYABLES AND ACCRUALS

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Sundry payables 7,378 7,074 27 -

Profit element payable on BAIDS 26,590 27,035 - -
Accruals 25,346 19,363 4,094 209
Others 1,035 1,082 - -
60,349 54,554 4,121 209
15 SHARE CAPITAL
Group Group
and and
Company Company
2003 2002
RM’000 RM’000
Authorised:
10,000,000,000 ordinary shares of RM0.25 each at beginning of the year 2,500,000 -
400,000 ordinary shares of RM0.25 each at beginning of the year - 100
9,999,600,000 ordinary shares of RM0.25 each created during the year - 2,499,900
10,000,000,000 ordinary shares of RM0.25 each at end of the year 2,500,000 2,500,000
Issued and fully paid up:

5,000,000,000 ordinary shares of RM0.25 each at beginning of the year 1,250,000 -
2 ordinary shares of RM0.25 each at beginning of the year - -
4,999,999,998 ordinary shares of RM0.25 each created during the year - 1,250,000
5,000,000,000 ordinary shares of RM0.25 each at end of the year 1,250,000 1,250,000
31 December 2003
16 CAPITAL RESERVE
Group Group
2003 2002
RM’000 RM’000
Non-distributable:
Capital redemption reserve 10,000 10,000
Share premium 451,138 451,138
461,138 461,138
The movements in the capital reserves are shown in the Statements of Changes in Equity.
The Capital Redemption Reserve arose upon the redemption by PLUS of Redeemable Convertible Cumulative
Preference Shares in 1999.
Share premium of the Group represents the premium arising from the rights issue and the conversion of the RCBs
as referred to in Note 3d(i) and (ii).
17 MERGER RESERVE
The difference between the nominal value of share of the Company issued as consideration and the nominal value
of the shares acquired has been classified as a merger reserve/(deficit). The merger deficit as at 1 January 2002,
as shown in the Statements of Changes in Equity, is reflected as the subsidiary had accumulated losses and did
not have sufficient reserve for set-off.
31 December 2003
18 REVENUE RESERVE/(ACCUMULATED LOSSES)

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Balance at beginning of year 512,172 (907,059) (7,840) -

Profit/(Loss) for the year 732,061 (1,774,976) 374,477 (7,840)
Over-accrual of tax payable in respect of dividends - 9,207 - -
1,244,233 (2,672,828) 366,637 (7,840)
Eliminated against Share Premium - 3,185,000 - -

Interim tax exempt dividend (175,000) - (175,000) -
Balance at end of year 1,069,233 512,172 191,637 (7,840)
Pursuant to the Scheme of Arrangement under Section 176 of the Companies Act 1965, as approved by the High
Court, the entire amount of accumulated losses of PLUS as at 31 May 2002 of RM3,185 million was eliminated
against the share premium arising from the issue of ordinary shares.
By virtue of the terms of PLUS’ tax exemption (see Note 3(b)), the entire revenue reserve of the subsidiary, PLUS
as at 31 December 2003 is distributable as tax exempt dividends.
The distributability of the Revenue Reserve of the Group is subject to the restrictions set out in Note 24, ‘Security
Arrangements of Borrowings and Bonds’.
31 December 2003
19 BORROWINGS
Group Repayable Repayable

within after
Principal 12 months 12 months
RM’000 RM’000 RM’000
31 December 2003/2002
Government Support Loan (interest free) 750,000 - 750,000
Additional Support Loan (interest free) 212,000 - 212,000
962,000 - 962,000
The maturity profile of borrowings is analysed in Note 23, ‘Maturity Profile of Bonds and Borrowings’.
19.1 Government Support Loan

As described in Note 3(a), in consideration of PLUS agreeing to lower toll rates, the Government and PLUS
entered into a Third Supplemental Support Loan Agreement whereby the Government agreed to waive
PLUS’ obligation to pay interest chargeable by the Government under the Support Loan Agreement accrued
up to 1 January 2002, amounting to RM1,729.22 million. The amount of interest waived includes the
interest capitalised and accrued in the intervening period between the represented and actual date of
issue of the Link Bonds as described below. The balance of principal on the Government Support Loan
after deduction of the interest waiver amounts to RM750 million, and the Government has also agreed to
exempt PLUS from its obligation to pay interest on this balance.
In conjunction with a previous debt restructuring scheme undertaken in 1999, PLUS entered into the
Second Supplemental Support Loan Agreement (‘SSSLA’) with the Government in connection with the
issue of RM900 million (in present day value at the issue date) Link Bonds to a related company, Hartanah
Lintasan Kedua Sdn Bhd, in satisfaction of the proposed assumption by another related company, Linkedua
(Malaysia) Berhad, of RM900 million of PLUS’ Government Support Loan.
The Link Bonds did not involve cash inflows or outflows to PLUS upon issue and have been represented,
based on the SSSLA, to be issued on 1 September 1999, with a corresponding reduction in the Govern-
ment Support Loan. However, the Link Bonds were issued only on 21 June 2000 from which date the Link
Bonds are accreted at the agreed yield, and the interest on the Government Support Loan was capitalised
at the resulting reduced balance.
31 December 2003
• BORROWINGS cont
In the intervening period between the represented date of issue of the Link Bonds on 1 September 1999 and
the actual issue date on 21 June 2000, the principal balance of the RM900 million Government Support
Loan remained, according to the SSSLA, an obligation of PLUS and was subject to interest at 10% per
annum capitalised semi-annually and repayable from 2011 to 2020 in 20 equal semi-annual instalments.
Upon issue of the Link Bonds on 21 June 2000, PLUS’ obligation in respect of the RM900 million principal
portion of the Government Support Loan was correspondingly reduced. However, the interest cost capi-
talised up to the date of issue of the Link Bonds, which became an obligation of PLUS until the interest
exemption described above, bore interest of 10% per annum capitalised semi-annually, and was to be
repayable from 2011 to 2020 in 20 equal semi-annual instalments.
The applicable repayment terms on PLUS’ balance of the Government Support Loan as at 31 December
2003 and 31 December 2002 will be repayable from 2014 to 2023 in 10 equal annual instalments.
The interest rates applicable to 1 January 2002 were 8% per annum capitalised annually, and 10% per
annum capitalised semi-annually for the respective amounts. Subsequent to 1 January 2002, the RM750
million balance is interest-free as described above.
The relevant details of the security arrangements are stated in Note 24, ‘Security Arrangements of
Borrowings and Bonds’.
19.2 Additional Support Loan

On 25 August 1999, PLUS entered into an Additional Support Loan Agreement with the Government for
an interest-free loan not exceeding RM212 million in consideration for PLUS agreeing to lower its toll
rates for certain years from those specified in the Supplemental Concession Agreement dated 8 July 1999.
PLUS had provided an undertaking to the Government that it would provide such security interest in favour
of the Government in December 2006 (or any other date as may be agreed by PLUS and the Government)
to secure the loan.
However, on 23 May 2002, PLUS entered into a Supplemental Additional Support Loan Agreement for,
inter-alia, the creation of security for the loan, with such security ranking on a subordinated basis to
certain other borrowings of PLUS following completion of PLUS’ Debt Restructuring.
The loan has been fully drawndown and is repayable as one bullet repayment on 2 January 2024.
The relevant details of the security arrangements are stated in Note 24, ‘Security Arrangements of
Borrowings and Bonds’.
31 December 2003
20 BAI BITHAMAN AJIL ISLAMIC DEBT SECURITIES (“BAIDS”)
Group Group
2003 2002
RM’000 RM’000
Repayable within 12 months 200,000 100,000

Repayable after 12 months 4,800,000 5,000,000
5,000,000 5,100,000
The BAIDS are constituted by a Trust Deed dated 23 May 2002 made by PLUS and the Trustee for the holders of
the BAIDS.
As referred to in Note 3(d)(iv), PLUS issued RM5,100 million of BAIDS on 31 May 2002. The BAIDS are negotiable
non-interest bearing secured Primary Bonds together with non-detachable Secondary Bonds. The Primary Bonds
were issued in 15 series, with maturities commencing from 2003 to 2017.
Each series of the BAIDS is divided into a specific number of Primary Bonds in face value of RM1 million each to
which shall be attached an appropriate number of Secondary Bonds, the face value of which represents the semi-
annual profit of the bonds. The Secondary Bonds are redeemable every six months commencing six months after
the issue date. The face value of the Secondary Bonds are computed based on the profit rates specified for each
series of the Primary Bonds, i.e. from 3.40% to 7.50% per annum.
The terms of the BAIDS contain various covenants, including the following:
i PLUS must maintain a Finance Service Coverage Ratio of at least 2.75 times on each calculation date, being
31 December and 30 June in each year, or such other date in respect of any calculation required to be made
prior to any payment of dividend or distribution, or any advances;
ii PLUS must maintain a Finance Service Reserve Account (“FSRA”) during the tenure of the BAIDS which has
a minimum balance equivalent to the next 12 months’ finance service due under the BAIDS. The amount
therein may be withdrawn to meet any payment under the BAIDS, provided always that PLUS shall transfer
monies into such account within 30 days from such withdrawal to maintain the minimum balance described
above; and
31 December 2003
• BAI BITHAMAN AJIL ISLAMIC DEBT SECURITIES (“BAIDS”) cont
iii PLUS must maintain a Maintenance Reserve Account (“MRA”) during the tenure of the BAIDS which has (i)
within six months from 31 May 2002, a minimum balance equivalent to the projected capital expenditure for
the Expressways in respect of the three months following 31 May 2002; (ii) within nine months from 31 May
2002, a minimum balance equivalent to the projected capital expenditure of the Expressways in respect of the
nine months following 31 May 2002, and (iii) within twelve months from 31 May 2002, a minimum balance
equivalent to the projected capital expenditure of the Expressways in respect of the twelve months following
31 May 2002. However, a minimum balance may be withdrawn to meet any payment of the projected capital
expenditure for Expressways, subject always to the condition that PLUS shall transfer monies into the MRA
within 30 days of such withdrawal to maintain the minimum balance described above.
The relevant details of the security arrangements are stated in Note 24, ‘Security Arrangements of Borrowings
and Bonds’.
The terms of the Trust Deed prescribes that in the event of default, the outstanding amount of the Primary Bonds
and the profit element next due will become immediately due and payable.
21 BAI BITHAMAN AJIL SERIAL BONDS (“BBA SERIAL BONDS”)
Group Group
2003 2002
RM’000 RM’000
BBA Serial Bonds 1,148,930 1,148,930

Accreted Profit Element 74,710 2,345
1,223,640 1,151,275
The BBA Serial Bonds are constituted by a Trust Deed dated 11 December 2002 made by PLUS and the Trustee
for the holders of the BBA Serial Bonds.
As referred to in Note 3(e), PLUS issued RM2,260 million nominal value of BBA Serial Bonds on 20 December
2002. The BBA Serial Bonds are negotiable non-interest bearing secured Bonds in bearer form evidencing a promise
by PLUS to pay stated sums on specified dates. The Bonds are issued in 12 series with tenures from 8.5 years to
14 years from the date of issue.
31 December 2003
• BAI BITHAMAN AJIL SERIAL BONDS (“BBA SERIAL BONDS”) cont
PLUS sold all its rights, benefits and title under the Concession Agreement at the Purchase Price of RM1,149 million
and subsequently repurchased them for RM2,260 million being the aggregate of the Purchase Price and a Profit
Margin. The profit margin ranges from 5.75% to 6.95% per annum and is compounded semi annually.
The relevant details of the security arrangements are stated in Note 24, ‘Security Arrangements of Borrowings
and Bonds’.
The terms of the Trust Deed prescribes that in the event of default, the nominal amount outstanding of the BBA
Serial Bonds, that is the Asset Sale Price, will become immediately due and payable.
22 DEFERRED LIABILITIES
Deferred liabilities comprise fees received in advance for future maintenance expenditure to be incurred, in consi-
deration for right-of-way granted by PLUS, analysed as follows:
Group Group
2003 2002
RM’000 RM’000
Amounts received in advance 59,146 48,146

Amounts expended (15,021) (12,729)
44,125 35,417
31 December 2003
23 MATURITY PROFILE OF BONDS AND BORROWINGS

Amounts outstanding and repayable as at 31 December 2003 and 31 December 2002 of the Group are tabulated
as follows:
Between Between
Within 1 and 2 3 and 5 After 5
1 Year Years Years Years Total
Note RM’000 RM’000 RM’000 RM’000 RM’000
31 December 2003
Borrowings 19 - - - 962,000 962,000
BAIDS 20 200,000 300,000 1,500,000 3,000,000 5,000,000
BBA Serial Bonds 21 - - - 1,223,640 1,223,640
200,000 300,000 1,500,000 5,185,640 7,185,640
31 December 2002
Borrowings 19 - - - 962,000 962,000
BAIDS 20 100,000 200,000 1,250,000 3,550,000 5,100,000
BBA Serial Bonds 21 - - - 1,151,275 1,151,275
100,000 200,000 1,250,000 5,663,275 7,213,275
24 SECURITY ARRANGEMENTS OF BORROWINGS AND BONDS

The security arrangements as at 31 December 2003 in connection with PLUS’ borrowings and bonds are as follows:
i Security arrangements for Designated Debts
Designated Debts refer to the Overdraft Facility and Maintenance Bond Facility (“the Existing Debt”), BAIDS,
the Government Support Loan and the Additional Support Loan.
a An assignment and charge (ranking first in point of security) over the Toll Amounts, Credit Balances and
Additional Project Accounts (save and except in respect of the Additional Toll Revenue Account, it would
exclude the ELITE Amount) and PLUS Amount (except for the Charged Amount);
31 December 2003
• SECURITY ARRANGEMENTS OF BORROWINGS AND BONDS cont
b An assignment (ranking first in point of security) of the rights over the Concession, Construction Guaran-
tees (other than the Performance Bonds), Construction Contracts and Insurances;
c A debenture over the fixed and floating assets of PLUS (other than Security interest already covered under
(a) and (b) above, Support Loan Account, the Performance Bonds, the Performance Bonds Proceeds Account,
the Charged Amount and the BBA Security Account);
d An assignment (ranking first in point of security) over PLUS’ rights, title and interest in the Additional
Project Agreements; and
e An assignment (ranking second in point of security after the Government) over the Performance Bonds and
Performance Bonds Proceeds Account.
(hereinafter referred to as “the Designated Debt Security”)
The Security Trustee shall hold the benefit of the Designated Debt Security for the benefits of the Designated
Debts ranking amongst themselves in the following manner:
a ranking first, the BAIDS, Existing Debts and the Government Support Loan shall rank pari passu amongst
themselves; and
b ranking second, the Additional Support Loan.
save and except for:
a The security in respect of the Performance Bonds and the Performance Bonds Proceeds Account, which
shall be held by the Security Trustee only for the benefit of the Designated Debt other than the Government
Support Loan, which shall rank as follows:
• ranking first, the BAIDS, Existing Debts which has been designated as Designated Debt shall rank pari
passu amongst themselves; and
• ranking second, the Additional Support Loan.

31 December 2003
b The security in respect of the FSRA (which forms part of the Additional Project Account mentioned in
(a) above) shall rank as between the Designated Debt as follows:
• ranking first, the BAIDS;
• ranking second, the Existing Debts and the Government Support Loan shall rank pari passu amongst
themselves; and
• ranking third, the Additional Support Loan.
c The security in respect of the Assignment of the Concession shall be held by the Security Trustee only for
the benefit of the Designated Debt other than the Government Support Loan and the Additional Support
Loan, which shall rank pari passu amongst themselves.
The BBA Security Account and the Charged Amounts are excluded from the Designated Debt Security and
are charged to the holders of the BBA Serial Bonds.
The Support Loan Account is totally excluded from the Security and is charged to the Government under
the Support Loan Agreement.
ii Security arrangements for BBA Serial Bonds
a Assignment over the Charged Amounts; and
b Charge over the BBA Security Account.
The BBA Security Account to receive the Charge Amounts shall be managed by the BBA Serial Bonds Trustee.
Determination of the Charged Amounts shall be in the following manner;
a 6 months prior to and ending on the date falling 65 days before maturity date of the BBA Serial Bonds (the
“Relevant Period”), PLUS shall determine the excess cashflow of PLUS (other than proceeds from the
issuance of new shares by PLUS and excluding the FSRA and MRA, which are charged to the holders
of the BAIDS) at the end of each Relevant Period after providing or payment, as the case may be, for the
following:
31 December 2003
i for PLUS’ budgeted operating and capital expenditure requirements for the following Relevant Period;
ii for such of the Existing Debt as remains outstanding;
iii to the FSRA and MRA during the said Relevant Period;
iv in respect of the redemption of BAIDS during the said Relevant Period; and
v for any Toll Revenue sharing payable in cash to the Government pursuant to the Concession Agree-
ment in respect of toll revenue collected for the Relevant Period ending on such date.
25 REVENUE
The revenue of the Group and of the Company consists of the following:

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Toll revenue 1,443,003 1,375,800 - -
Gross toll compensation revenue 307,290 294,973 - -

Less: Notional tax on tax exempt dividends (143,889) - - -
Notional interest on Government Support Loan (25,839) - - -
Net toll compensation revenue 137,562 294,973 - -
Expressway operation services fees 1,771 - 28,639 -

Tax exempt dividends from subsidiary - - 370,000 -
1,582,336 1,670,773 398,639 -

Accrual for Government’s share of toll revenue (1,466) (8,077) - -
1,580,870 1,662,696 398,639 -

31 December 2003
• REVENUE cont
On 8 July 1999, PLUS entered into a Supplemental Concession Agreement (“SCA”) with the Government for an
extension of the Concession Period to 31 May 2030. Additionally, toll rate structures were revised and toll revenue
sharing arrangements were established between the parties. Based on the terms of the SCA, and the toll revenue
earned during the year, the Government is entitled in respect of the Concession Years 2002 to 2008, to 20% of the
amount by which the actual toll revenue of PLUS exceeds the threshold toll revenue as specified in the SCA.
As referred to in Note 3(a), further revised toll rate structures have been imposed through the Second Supplemen-
tal Concession Agreement. The toll compensation revenue is arrived at based on the agreed terms in the Second
Supplemental Concession Agreement entered into with the Government as described in Note 3(c).
26 OTHER OPERATING INCOME

Other operating income comprises the following:

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Income from rental of facilities 10,348 10,383 - -

Income from rental of fibre optic telecommunications 12,502 11,907 - -
system and way leave rights
Others 10,753 5,654 1 -
33,603 27,944 1 -
31 December 2003
27 PROFIT/(LOSS) FROM OPERATIONS

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Profit from operations is arrived at after charging/(crediting):

Auditors’ remuneration
- statutory audit fee 215 215 30 30
- other services fee 205 1,206 94 1,008
- over provison of other services fees in previous periods - (406) - -
Depreciation of Property, Plant and Equipment 7,451 8,443 296 -
Property, Plant and Equipment written off 14 6 - -
Gain on disposal of property, plant and equipment (469) (1,081) - -
Net amortisation charge for Concession Assets (Note i) 178,483 129,830 - -
Costs relating to Bukit Lanjan rockfall (Note ii) 21,081 - - -
Directors’ remuneration*
- fees 340 247 250 141
- other emoluments 654 516 198 17
- benefit in kind 39 32 3 -
Fees paid to a third party in respect of services rendered
by directors 50 19 50 6
(Write back)/Allowance for doubtful debts (392) 2,314 - -
Bad debts written off 3,891 - - -
Provision for retirement benefits 3,346 1,401 - -
Rental of equipment 1,067 838 145 -
Rental of premises 2,067 2,123 747 -
Provision for diminution in value of short term investments 102 - - -
Listing expenses - 6,522 - 6,522
* Not included in the above is the remuneration of the Executive Vice Chairman of the Company which is borne by
the immediate holding company.
31 December 2003
• PROFIT/(LOSS) FROM OPERATIONS cont

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Note i:
Amortisation of Concession Assets (excluding Heavy Repairs)
based on prior year’s total projected revenue 120,863 70,400 - -
Amortisation of Heavy Repairs 75,100 59,430 - -
Write back of accelerated amortisation in prior years
(Note 4(e)(i)) (51,275) - - -
Additional amortisation arising from the re-computation of - - -
accumulated amortisation (Note 4(e)(i)) 4,345 - - -
Additional amortisation arising from the revised traffic
projections in October 2003 (Note 4(e)(i)) 29,450 - - -
Net amortisation charge for Concession Assets 178,483 129,830 - -
Note ii:
Write off of net book value of Bukit Lanjan slope (Note 4(e)(i)) 13,678 - - -
Repair and clearance cost 7,403 - - -
Costs relating to Bukit Lanjan rockfall 21,081 - - -

31 December 2003
28 NET FINANCE (EXPENSE)/INCOME

Net finance expense for the year arose as follows:

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Profit element from short term deposits 31,834 11,916 - -

Interest income from short term deposits 3,433 9,531 786 -
Profit element on BAIDS and BBA Serial Bonds (377,744) (183,143) - -
Interest expense on borrowings and bonds - (625,132) - -
Interest income on Renong SPV Bond and UEM Bond - 291,706 - -
Interest income on loan to immediate holding company - 1,656 - -
(342,477) (493,466) 786 -
29 EXCEPTIONAL ITEMS
Exceptional items comprise the following:

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Waiver of interest on Government Support Loan

as disclosed in Note 3(a)(i) - 1,729,223 - -
Loss on investments as disclosed in Note 3(d)(iii) - (4,239,536) - -
- (2,510,313) - -
31 December 2003
30 EMPLOYEE COSTS

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Employee emoluments 104,554 96,319 15,565 -

Employee training/welfare 2,842 1,803 217 -
107,396 98,122 15,782 -
Number Number Number Number
Number of employees at end of the year:

Executive 336 306 288 -
Non-Executive 2,765 2,679 590 -
3,101 2,985 878 -
31 INCOME TAX

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Income tax based on results for the year:
- Current (1,538) - (1,538) -
- Under provision in respect of prior years (1,228) - - -
- Deferred taxation (734) - (734) -
(3,500) - (2,272) -
31 December 2003
• INCOME TAX cont
No provision for taxation arises for the subsidiary, PLUS, as income is not assessed to tax due to the tax exempt
status granted as described in Note 3(b).
As at 31 December 2003, the Group has tax exempt profits available for distribution of approximately
RM3,978,000,000 (2002: RM2,509,300,000), subject to the agreement of the Inland Revenue Board.
The reconciliation of the tax effects of accounting and taxable income are as follows:

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Profit/(loss) before income tax 735,561 (1,774,976) 376,749 (7,840)
Tax at applicable statutory tax rate of 28% 205,957 (496,993) 105,490 (2,195)
Tax effect of expenses that are not deductible
in determining taxable profit 131,848 1,190,010 382 2,105
Tax effect of income not subject to tax - - (103,600) -
Current period unabsorbed tax losses - 90 - 90
Underprovision of income tax expense in prior years 1,228 - - -
Tax effect of tax exemptions (335,533) (693,107) - -
Tax expense 3,500 - 2,272 -

31 December 2003
32 BASIC EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per share has been calculated based on the profit or loss after income tax attributable to
ordinary shareholders, and respectively before and after exceptional items, divided by the weighted average
number of ordinary shares in issue during the financial year.
These amounts are tabulated as follows:

2003 2002 2003 2002
Profit/(Loss) after income tax attributable to ordinary

shareholders, before exceptional items (RM’000) 732,061 735,337 374,477 (7,840)
Profit/(Loss) after income tax attributable to

ordinary shareholders, after exceptional items (RM’000) 732,061 (1,774,976) 374,477 (7,840)
Weighted average number of ordinary shares (’000) 5,000,000 5,000,000 5,000,000 3,164,006
Basis earnings/(loss) per share (sen):

- before exceptional items 14.64 14.71 7.49 (0.25)
- after exceptional items 14.64 (35.50) 7.49 (0.25)
33 OVER-ACCRUAL OF TAX PAYABLE IN RESPECT OF DIVIDENDS

This is a reversal of an over-accrual in respect of tax payable,for the unavailability of tax credit under Section 108
of the Income Tax Act 1967, to frank payment of dividends in previous years.
31 December 2003
34 DIVIDENDS
Group Group
2003 2002
RM’000 RM’000
Interim tax exempt dividend of 3.5 sen per ordinary share paid on 8 October 2003 175,000 -
At the forthcoming Annual General Meeting, a final tax exempt dividend in respect of the financial year ended
31 December 2003 of 3.5 sen per ordinary share of RM0.25 each, amounting to a total dividend payable of
RM175,000,000 will be proposed for shareholders’ approval. The financial statements for the current financial
year do not reflect this proposed dividend. Such dividend if approved by the shareholders, will be accounted for
in shareholders’ equity as an appropriation of retained profits in the financial year ending 31 December 2004.
35 SIGNIFICANT RELATED PARTY TRANSACTIONS

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Property, plant and equipment transferred from PLUS - - 8,886 -
Dividend income received/receivable from PLUS - - 370,000 -
cont.
31 December 2003
• SIGNIFICANT RELATED PARTY TRANSACTIONS cont

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Management fees received for expressway operation

services rendered by the Company to:
- PLUS - - 26,868 -
- subsidiaries of UEM, namely:
- Linkedua (Malaysia) Sdn Bhd (“LINKEDUA”) 1,018 - 1,018 -
- Expressway Lingkaran Tengah Sdn Bhd (“ELITE”) 753 - 753 -
Interest income received/receivable from UEM in respect of

UEM Bond - 141,088 - -
Interest income received/receivable from UEM in respect of

loan extended to UEM - 1,656 - -
Expressways development expenditure works performed

for PLUS by subsidiaries of UEM World Berhad (“UEM
World”) (formerly known as Global Converge Sdn Bhd),
namely:
- UEM Construction Sdn Bhd (formerly known as
UE Construction Sdn Bhd) 6,079 12,679 - -
- Projek Penyelenggaran Lebuhraya Berhad
(“PROPEL”) 1,788 12,818 - -
- Pengurusan Lebuhraya Bhd (“PLB”) 299 450 - -
Expressways development expenditure works performed for

PLUS by subsidiaries of UEM, namely:
- Teras Control Systems Sdn Bhd 4,196 16,170 - -
- Teras Teknologi Sdn Bhd (“TERAS”) 5,878 1,711 - -
- Infrared Advanced Technologies Sdn Bhd (“IRAT”) - 746 - -
cont.
31 December 2003

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Expressway maintenance expenditure paid/payable to:

- subsidiaries of UEM World, namely:
- Soil Centralab Sdn Bhd - 283 - -
- PROPEL 181,368 96,170 - -
- Rangkaian Segar Sdn Bhd (“RSSB”), an associated
company of UEM World 27 - - -
Expressway maintenance expenditure paid/payable to:

- UEM 43,911 77,124 - -
- subsidiaries of UEM, namely:
- Teras Control Systems Sdn Bhd 1,951 2,147 - -
- TERAS 3,343 - - -
Project management fees paid/payable to PLB, a subsidiary

of UEM World 4,316 3,049 - -
Network maintenance management and technical services

performed for PLUS by subsidiaries of UEM World, namely:
- Opus International Consultants Sdn Bhd - 13,865 - -
- PLB 17,406 6,073 - -
Provision of information technology services by TERAS,

a subsidiary of UEM 3,276 1,719 789 -
Corporate and administrative support services paid/payable to:

- UEM 36 8 13 8
- UEM Group Management Sdn Bhd, a subsidiary of
UEM World 961 905 45 -
- UEM Land Sdn Bhd (formerly known as Renong Berhad),
a subsidiary of UEM World - 32 - -
cont.
31 December 2003

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Annual arranger fees paid to UEM in respect of RM50 million

syndicated bank guarantee facility 2,282 2,282 - -
Amounts payable in respect of Directors’ remuneration:

- Khazanah Nasional Berhad 6 9 4 3
- UEM 2 7 - -
Directors’ remuneration received from LINKEDUA,

a subsidiary of UEM 5 - 5 -
Amounts payable for service for operations:

- United Services & Automotive Industries Sdn Bhd,
a subsidiary of UEM 228 126 - -
- TT dotCom Sdn Bhd (“TT dotCom”), an associated
company of UEM 400 161 128 -
Purchase of electronic toll collection system by PLUS from:

- IRAT, a subsidiary of UEM 687 6,704 - -
- Rangkaian Segar Sdn Bhd (“RSSB”), an associated
company of UEM World 3,938 3,572 - -
Rental and maintenance of office space paid/payable to Faber

Union Sdn Bhd, an associated company of UEM World 2,647 2,569 733 -
Toll collection received/receivable from ELITE, a subsidiary

of UEM 7,366 11,259 - -
Toll collection paid/payable to ELITE, a subsidiary of UEM 3,491 1,520 - -
Commission for Touch ’n’ Go paid/payable to RSSB, an

associated company of UEM World 12,688 10,844 - -
cont.
31 December 2003

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Interest income received/receivable from Renong Debt

Management Sdn Bhd, a subsidiary of UEM Land Sdn Bhd,
in respect of Renong SPV Bond - 150,618 - -
Lease rental income received/receivable in respect of

fibre optic telecommunications network
and wayleave rights from TT dotCom,
an associated company of UEM 12,502 11,405 - -
Income from rental of facilities received/receivable from

associated companies of UEM, namely:
- TT dotCom 308 370 - -
- TIME Reach Sdn Bhd 166 133 - -
- TIMECEL Sdn Bhd - 4,509 - -
Professional and secretarial fees paid/payable to

Abu Talib Shahrom & Zahari, of which a director of UEM,
Abu Talib bin Abdul Rahman (resigned on 30 June 2003),
is a partner 509 1,094 - -
Professional fees paid/payable to Signet Share Registration

Services Sdn Bhd, of which a director of the Company,
Dato’ Mohamed Azman Yahya, has interest 107 463 107 463
Management and administrative expenses received/receivable

from subsidiaries of UEM, namely:
- ELITE, a subsidiary of UEM 86 - - -
- PROPEL, a subsidiary of UEM World 46 - - -
31 December 2003
36 CAPITAL COMMITMENTS

2003 2002 2003 2002
RM’000 RM’000 RM’000 RM’000
Amounts authorised and contracted for 208,156 206,152 - -
Amounts authorised but not contracted for - 29,742 - -
37 FINANCIAL INSTRUMENTS, FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s principal financial instruments consist of BAIDS, BBA Serial Bonds, Government Support Loan,
Additional Support Loan, bank overdraft, short term investments and short term deposits. The BAIDS and the
Government Support Loan are refinanced portions of the original project financing facilities. The BBA Serial Bonds
are the refinanced portion of the Link Bonds referred to in Note 3(e). The Link Bonds were issued in previous years
in connection with group financing requirements. Short term deposits are investments of available cash flows
from operations.
The Group has various other financial instruments such as trade and sundry payables that arise directly from
operations, related company receivables and payables, amount owing from/(to) subsidiary, amount owing to
immediate holding company and sundry receivables.
The following disclosures exclude sundry receivables, related company receivables and payables, amount owing
from/(to) subsidiary, amount owing to immediate holding company and sundry payables.
The Group reviews and agrees policies for managing each of the risks summarised below:
a Interest Rate Risk

The Group obtains its external financing through BAIDS, BBA Serial Bonds, the Government Support Loan and
the Additional Support Loan. Whilst the Government Support Loan and the Additional Support Loan are
interest-free, the Group’s profit element and profit margin for BAIDS and BBA Serial Bonds respectively are
based on agreed fixed rates.
Information relating to the Group’s interest rates and profit element on borrowings and bonds are disclosed
in Notes 19, 20, 21 and 28.
31 December 2003
• FINANCIAL INSTRUMENTS, FINANCIAL RISK MANAGEMENT
OBJECTIVES AND POLICIES cont
Surplus funds where available are mainly placed with approved licensed banks. The Group is exposed to
changes in interest rates that affect interest income from fixed deposits.
The interest profile of the financial liabilities of the Group is as follows:
Group Group
2003 2002
RM’000 RM’000
Fixed rate financial liabilities 6,223,640 6,251,275

Interest free financial liabilities 962,000 962,000
7,185,640 7,213,275
The weighted average rate on fixed rate financial liabilities applicable is as follows:
Group Group
2003 2002
Weighted average interest rate/profit element (%) 5.85 5.85
Weighted average period for which rate is fixed (years) 14.4 14.4
The interest profile of the financial assets of the Group is as follows:
Group Group
2003 2002
RM’000 RM’000
Floating rate financial assets (Note i) 1,244,406 924,789

Financial assets on which no interest is earned (Note ii) 6,031 5,268
1,250,437 930,057
31 December 2003
Note i
Floating rate financial assets mainly comprise short term deposits placed with licensed banks. The short term
deposits placed with the licensed banks attracted interest/profit element during the year at rates ranging from
2.45% to 3.43% (2002: 2.45% to 2.85%) per annum. The maturity dates for short term deposits during the
period range between 1 day to 7 months (2002: 1 day to 3 months).
Note ii
Financial assets on which no interest is earned comprise cash and bank balances.
b Market Risk
The Group holds investment in quoted shares of short term securities. The value of the securities is subject
to fluctuations as a result of changes in market prices whether those changes are caused by factors specific
to the individual security or its issuer or factors affecting all securities traded in the market.
c Foreign Currency Risk

There is no foreign currency financing obtained by the Group for the year ended 31 December 2003 and there
is no anticipation of foreign currency risk exposure for future transactions.
d Credit Risk
The carrying amount of sundry receivables, subsidiary and related company receivables represent the Group’s
maximum exposure to credit risk.
The amount recoverable from the Government of Malaysia is not exposed to any credit risk to PLUS other than
if there are any amounts due from the Government upon expiry of the Concession Period in 2030, which will
be required to be unconditionally waived by PLUS, as disclosed in Note 3(c). The credit risk-free character of
the amount recoverable from the Government is in view of the toll compensation arrangements referred to in
Note 3(c).
e Liquidity Risk
The Group’s objectives on liquidity are to maintain a balance between meeting debt service obligations and
covenants, Expressway capital and operating expenditure and meeting shareholder distribution expectations.
f Maturity of Financial Liabilities

The maturity profile of the financial liabilities is disclosed in Note 23.
Undrawn committed facilities available at 31 December 2003 in respect of the financial liabilities comprise a
bank overdraft facility of RM50.0 million (2002: RM50 million).
31 December 2003
g Fair Values
The carrying amounts of cash and short term deposits approximate their fair values because of the short
maturity periods of those instruments.
The fair value of the Group’s long term debt is based as follows:
• in respect of Borrowings comprising Government Support Loans, at the book value as market terms are not
applicable.
• in respect of BAIDS, is estimated by discounting the expected future cash flows using the indicative market
rates available for each of the series.
• in respect of BBA Serial Bonds, is estimated by discounting the expected future cash flows using the indi-
cative market rates available for each of the series.
Set out below is a comparison by category of book values and fair values of all the Group’s financial assets
and financial liabilities.
2003 2003 2002 2002

Book Value Fair Value Book Value Fair Value
RM’000 RM’000 RM’000 RM’000
Borrowings (962,000) (962,000) (962,000) (962,000)

BAIDS (5,026,590)* (5,218,295) (5,127,035)* (5,127,035)**
BBA Serial Bonds (1,223,640) (1,005,946) (1,151,275) (1,151,275)**
Cash and short term deposits 1,250,437 1,250,437 930,056 930,056
* Inclusive of approximately RM26.6 million (2002: RM27.0 million) in sundry payables.
** The fair values for BAIDS and BBA Serial Bonds in issue are equivalent to their book values as their effec-
tive rates are considered to be market rates in view of their then recent issue.
31 December 2003
38 SIGNIFICANT EVENTS
i Under the Toll Compensation Arrangements, the Government agreed to grant PLUS tax exempt status for a
period of five consecutive years from 2002 to 2006. The exemption applies to PLUS’ ‘Adjusted Income’ from
all sources.
Pursuant to the above, the Minister of Finance has, on 25 June 2003, made an order which may be cited as
Income Tax (Exemption) (No. 34) Order 2003 (“Order”), exempting PLUS from payment of income tax in respect
of its adjusted income from all sources from the year of assessment 2002 until the year of assessment 2006.
ii On 26 November 2003, a major rockfall occurred at km21.8 (Northbound) at Bukit Lanjan, New Klang Valley
Expressway (“NKVE”). Following the rockfall incident and in view of concerns on public safety, the Govern-
ment has announced that the affected stretch of the NKVE would be closed for up to 7 months to facilitate
the necessary remedial works. As at 31 December 2003, the following costs were incurred in respect of the
Bukit Lanjan rockfall:
- write off of net book value of Bukit Lanjan slope of RM13.7 million; and
- repair and clearance cost of RM7.4 million.
39 SUBSEQUENT EVENT
On 18 February 2004, the Ministry of Works announced that the Government has approved the abolishment
of the Senai toll plaza effective 1 March 2004. The Senai toll plaza is part of the Senai-Johor Bahru Highway
stretching approximately 25 kilometres operated and maintained by PLUS. As a result of the abolishment, a
compensation of RM331.68 million will be made to PLUS by the Government. The detailed terms of the compen-
sation will be further negotiated with the Government.
40 SEGMENTAL REPORTING
Segmental reporting is not applicable to the Group on the basis that the revenue of the Group is mainly from
expressway toll collections and toll compensation recoverable from the Government, net of Government toll
sharing, as disclosed in note 25, and the Group operates principally in Peninsular Malaysia.
31 December 2003
41 COMPARATIVES
The following income statement comparative figures have been re-classified to conform with current year’s
presentation:
Group As
As Previously
Restated Adjustments Stated
RM’000 RM’000 RM’000
General and administration expenses
Net finance expense 67,666 2,567 65,099
493,466 (2,567) 496,033

PLUS 2003 Annual Report - Notes To The Financial Statements

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PLUS 2003 Annual Report - Notes To The Financial Statements

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NOTES TO THE FINANCIAL STATEMENTS 1/53

2 AWARD OF CONCESSION TO PLUS

ii scheduled increases of Class 1 toll rate by 10% every 3 years thereafter.

a Revised Toll Rate Structures

b Tax Exempt Status

c Toll Compensation Arrangements

d Debt Restructuring and Flotation Scheme

4 SIGNIFICANT ACCOUNTING POLICIES

d Property, Plant and Equipment, and Depreciation

i Expressway Development Expenditure

Cumulative Toll Revenue Aggregate of Net Book Value

Additional accumulated amortisation/(write back) of EDE arising from: Charge/

Cumulative Toll Revenue to date from the

ii Other Concession Assets

Software and computers 12.5

iii Heavy Repairs

ii Provision for Retirement Benefits

k Short Term Investments

l Cash Flow Statement

ii Revenue from Services

iii Toll Compensation

n Bai Bithaman Ajil Islamic Debt Securities (“BAIDS”)

o Bai Bithaman Ajil Serial Bonds (“BBA Serial Bonds”)

Group Group Company Company

Expressway Development Expenditure (EDE) 8,257,972 8,377,966 - -

Details of Concession Assets are as follows:

At 31 December 8,931,024 700,699 386,601 10,018,324 9,819,390

At 31 December 673,052 367,810 301,862 1,342,724 1,165,343

Net Book Value at 31 December 2003 8,257,972 332,889 84,739 8,675,600

Net Book Value at 31 December 2002 8,377,966 276,081 - 8,654,047

6 PROPERTY, PLANT AND EQUIPMENT

At 31 December 2003 21,888 2,536 15,052 20,731 6,402 468 - 67,077

At 31 December 2002 23,999 8,541 21,289 23,328 6,465 3,843 - 87,465

At 31 December 2002 20,928 1,181 13,863 19,261 6,144 391 - 61,768

Additions 608 5,989 3,384 87 246 10,314

At 31 December 2003 608 5,989 3,384 87 246 10,314

Charge for the year 20 163 110 3 - 296

At 31 December 2003 20 163 110 3 - 296

Net Book Value at 31 December 2002 - - - - - -

Investment in subsidiary, at cost 1,250,000 1,250,000

The subsidiary, which is incorporated in Malaysia, is as follows:

Name Principal Activity Effective Equity Interest

8 FUTURE INCOME TAX BENEFIT/ DEFERRED TAX LIABILITY

Group Group Company Company

Unabsorbed tax losses 178,389 178,389 - -

The provision for deferred tax liability is as follows:

9 TOLL COMPENSATION RECOVERABLE FROM THE GOVERNMENT OF MALAYSIA

Toll compensation revenue 432,535 294,973

10 SUNDRY RECEIVABLES, DEPOSITS AND PREPAYMENTS

Group Group Company Company

Sundry receivables 12,521 6,825 194 -

10,598 4,511 194 -

26,035 9,704 1,331 -

11 HOLDING, SUBSIDIARY AND RELATED COMPANIES

i Amount owing to immediate holding company

Group Group Company Company

Amount owing to immediate holding company 17,592 24,334 70 109

Repayable within twelve months 10,707 17,449 70 109

iii Related companies

12 SHORT TERM INVESTMENTS

Group Group Company Company

Quoted shares at cost 1,164 - - -

Quoted shares at market value 1,062 - - -