Annual Report 2007

ANNUAL
REPORT
2 0 0 7
2 Notice of Annual General Meeting
5 Statement Accompanying Notice of Annual General Meeting
6 Corporate Information
8 Corporate Structure
10 Board of Directors
11-13 Directors’ Profiles
14-16 Chairman’s Statement
17-21 Statement on Corporate Governance
22 Statement of Directors’ Responsibility
23-24 Audit Committee Report TABLE OF

25-26 Statement of Internal Control CONTENTS
27-31 Operation Review
33-84 Financial Statements
85-86 Analysis of Shareholding
87-89 List of Properties
Proxy Form
ANNUAL REPORT 2007 1

NOTICE OF
ANNUAL
GENERAL
MEETING
NOTICE IS HEREBY GIVEN that the Fourth Annual General
Meeting of the Company will be held at the Ball Room, Level 1,
Kuala Lumpur International Hotel, Jalan Raja Muda Abd Aziz,
50738 Kuala Lumpur on Tuesday, 24 June 2008 at 10.00 a.m.
for the purpose of transacting the following business:
AGENDA
As Ordinary Business
1. To receive and adopt the Audited Financial Statements for the year Resolution 1
ended 31 December 2007 and the Reports of the Directors and
Auditors thereon.
2. To re-elect YM Tengku Mohd Hasmadi Tengku Hashim who retires in Resolution 2
accordance with Article 128 of the Company’s Article of Association.
3. To approve Directors’ fees of RM91,000 for the year ended 31 Resolution 3
December 2007.
4. To re-appoint Messrs. Ernst & Young as Auditors and to authorise the Resolution 4
Directors to fix their remuneration.
As Special Business
To consider and if thought fit, pass the following Ordinary Resolutions:-

5. Proposed Ratification of Recurrent Related Party Transactions of Resolution 5
a Revenue or Trading Nature
“THAT pursuant to paragraph 10.09 of the Listing Requirements of

Bursa Malaysia Securities Berhad, the specified recurrent transactions
of a revenue or trading nature as stated in the Circular to Shareholders
dated 2 June 2008 which were necessary for the Company and/or its
subsidiaries for the day-to-day operations of the Group and which were
on terms not more favourable to the related party than those generally
available to the public and not detrimental to the minority shareholders
of the Company and the execution of any documents related therein,
entered into by the Company and/or its subsidiaries from 15 June 2007
to the date of this resolution be and are hereby approved, affirmed and
ratified.
AND THAT the Directors of the Company or any one of them be and are
hereby authorized to complete and do all such acts and things as they
may consider expedient or necessary in the interest of the Company
and/or its subsidiaries to give effect to the Proposed Ratification as
described in the Circular and/or this Resolution.”
2 ANNUAL REPORT 2007

NOTICE OF ANNUAL GENERAL MEETING
6. Proposed General Mandate for Recurrent Related Party Resolution 6

Transactions of a Revenue or Trading Nature
“THAT pursuant to paragraph 10.09 of the Listing Requirements of

Bursa Malaysia Securities Berhad, approval be and is hereby given for
the Shareholders’ Mandate for the Company and/or its subsidiaries to
enter into the recurrent related party transactions of a revenue or trading
nature which are necessary for the day-to-day operations of the Group
to be entered into by the Company and/or its subsidiaries provided
such transactions are in the ordinary course of business and are on
terms not more favourable to the related party than those generally
available to the public, as specified in section 2.3 of the Circular to
Shareholders dated 2 June 2008 AND THAT such approval conferred
by the Shareholders’ Mandate shall continue to be in force until:
(a) the conclusion of the next Annual General Meeting (“AGM”) of the
Company following this AGM, at which time such mandate is
passed, at which it will lapse, unless by a resolution passed at the
general meeting, the authority is renewed;
(b) the expiration of the period within which the next AGM of the
Company after the forthcoming AGM is required to be held
pursuant to Section 143(1) of the Companies Act, 1965 (“Act”)
but shall not extend to such extension as may be allowed pursuant
to Section 143(2) of the Act; or
(c) revoked or varies by resolution passed by the shareholders of the

Company in a general meeting;
whichever is the earlier;
AND THAT the Directors of the Company or any one of them be and are
hereby authorized to complete and do all such acts and things (including
without limitation to execute such documents as may be required) to
give effect to the transactions contemplated and/or authorized by this
Ordinary Resolution.”
7. “THAT pursuant to Section 132D of the Companies, Act 1965, the Resolution 7
Directors be and are hereby authorized to issue shares in the Company
from time to time at such price, upon such terms and conditions, for
such purposes and to such person or persons whomsoever as the
Directors may, in their absolute discretion, deem fit provided that the
aggregate amount of shares issued pursuant to this resolution does not
exceed 10% of the issued and paid-up share capital of the Company
for the time being, subject always to the approval of the relevant
regulatory authorities AND THAT the Directors be and are hereby also
empowered to obtain approval from Bursa Malaysia Securities Berhad
for the listing of and quotation for the additional shares to be issued
AND THAT such authority shall continue in force until the conclusion of
the next Annual General Meeting of the Company.”
8. To transact any other business for which due notice shall have been
given.
By Order of the Board
TIFLA HAIRI TAIB (LS 0008017)

RAHANAWATI ALI DAWAM (BC/R/504)
Company Secretaries
Kuala Lumpur
2 June 2008
NOTICE OF ANNUAL GENERAL MEETING
Notes:
(i) A member of the Company entitled to attend and vote at the meeting is entitled to appoint a proxy
to attend and vote in his stead. A proxy may but need not be a member of the Company.
(ii) The proxy form must be deposited at the Company’s registered office at No. 38, Jalan Chow Kit,
50350 Kuala Lumpur not less than forty eight (48) hours before the time fixed for holding the meeting
and at any adjournment thereof.
(iii) Where a member of the Company appoint two (2) proxies, the appointment shall be invalid unless
the member specifies the proportion of his shareholding to be represented by each proxy.
(iv) The Proxy Form must be signed by the appointer or his attorney duly authorized in writing or if the
appointer is a corporation, either under its common seal or the hand of its attorney duly authorized.
Explanatory Notes on Special Business
(i) Resolution pertaining to the Proposed Ratification of Recurrent Related Party Transactions of a
Revenue or Trading Nature and Proposed Mandate for Recurrent Related Party Transactions of
a Revenue or Trading Nature, for proposed Ordinary Resolutions 5 and 6, further information on the
Recurrent Related Party Transactions are set out in the Circular to Shareholders of the Company
dated 2 June 2006 which is dispatched together with the Company’s 2007 Annual Report.
(ii) The proposed Resolution 7, if passed, will give the Directors of the Company, from the date of the
forthcoming Annual General Meeting, authority to issue and allot ordinary shares for such purposes
as the Directors in their absolute discretion consider to be in the interest of the Company without
having to convene a general meeting. This authority will, unless revoked or varied by the Company
in a general meeting, expire and at the conclusion of the next Annual General Meeting.

STATEMENT
Pursuant to paragraph 8.28 of the Listing Requirements of ACCOMPANYING
Bursa Malaysia Securities Berhad NOTICE
OF THE FOURTH
1. Name of Director who is standing for re-election/re-appointment ANNUAL GENERAL
MEETING
The details of YM Tengku Mohd Hasmadi Tengku Hashim, the Director who
is standing for re-election/re-appointment are set out in the Directors’ Profile
(page 12 of the Annual Report).
2. Details of Attendance of Directors at Board Meeting
Eight (8) board meetings were held during the financial year ended 31 December 2007.
Attendance of the Directors holding office at the end of the financial year 2007 is shown below:-
No. Directors Attendance

1. YBhg Dato’ Mohd Nadzmi Mohd Salleh 7 out of 8 meetings
2. YBhg Datuk Sulaiman Daud 7 out of 8 meetings
3. YM Tengku Mohd Hasmadi Tengku Hashim 7 out of 8 meetings
4. Encik Zainal Abidin Jamal 7 out of 8 meetings
5. Encik Muhammad Adib Ariffin 6 out of 8 meetings
3. Date, time and place of Annual General Meeting
The Fourth Annual General Meeting of the Company will be held on Tuesday, 24 June 2008 at
10.00 a.m. at the Ballroom, Level 1, Kuala Lumpur International Hotel, Jalan Raja Muda Abd Aziz,
50738 Kuala Lumpur.

CORPORATE
INFORMATION
BOARD OF DIRECTORS
Name Nationality Status
YBhg Dato’ Mohd Nadzmi Mohd Salleh Malaysian Chairman / Managing Director
Independent Non-Executive
YBhg Datuk Sulaiman Daud Malaysian
Director
YM Tengku Mohd Hasmadi Tengku Hashim Malaysian Executive Director
Encik Zainal Abidin Jamal Malaysian
Director
Encik Muhammad Adib Ariffin Malaysian
Director

COMPANY SECRETARIES SENIOR MANAGEMENT
Tifla Hairi Taib (LS 0008017) YM Tengku Mohd Hasmadi Tengku Hashim
Rahanawati Ali Dawam (BC/R/504) Executive Director
REGISTERED OFFICE Mr. Kong Hon Khien

General Manager, Finance & Corporate Affairs
No. 38, Jalan Chow Kit
50350 Kuala Lumpur Major (R) Randhir Singh
Tel: 03-40477878 Head, Transnasional Express Division
Fax: 03-40445516
Encik Noor Azmi Nordin
AUDITOR Sales Operations Manager, Nice Executive
Coach Operations
Ernst & Young
Encik Rosli Md Dali
STOCK EXCHANGE LISTING Sales Operations Manager, Plusliner Express
Operations
Main Board of Bursa Malaysia
Major (R) Mohd Noor Busu
PRINCIPAL BANKERS Head, Cityliner Stage Bus Division
Malayan Banking Berhad Encik Basri Baharom

CIMB Bank Berhad Regional General Manager, Cityliner
– Selangor & Kelantan Operations
Encik Alaudhin Assanar

PRINCIPAL SOLICITORS
Head, Group Human Resources & Corporate
Services
Zul Rafique & Partners
Lee & May
Encik Mohd Azlan Tambi Husen
Senior Manager, Operations Services
REGISTRAR
Puan Noor Aliza Ghazali
Symphony Share Registrars Sdn Bhd Manager, Group Information Technology
Level 26, Menara Multi-Purpose
Capital Square, No. 8 YM Tengku Ismith Tengku Ilham
Jalan Munshi Abdullah Manager, Systems & Reporting
50100 Kuala Lumpur
Tel: 03-27212222
Fax: 03-27212530

PARK MAY BERHAD - 100%
PLUSLINER SDN BHD - 100% (E)
PLUSLINER TRAVEL TOURS SDN BHD - 100% (T)
SIANA CORPORATION SDN BHD - 100% (D)
JURUBAS SDN BHD - 100% (D)
LANDVEST SDN BHD - 100% (P)
YEE YOW COACH BUILDERS SDN BHD - 100% (D)
TULUS HEBAT SDN BHD - 100% (H)
CITY PROFILE SDN BHD - 100% (D)
NIKRA SDN BHD - 95% (H)
THE KL KLANG & PORT SWETTENHAM

OMNIBUS CO BHD - 100% (S)
MIN SENG HOLDINGS - 67% (H)
JELEBU HOLDINGS SDN BHD - 83.2% (H)
ULUNG PERKASA SDN BHD - 100% (H)
TRANSNASIONAL EXPRESS SDN BHD - 100% (E)
KENDERAAN KLANG BANTING BHD - 100% (S)
KENDERAAN LABU SENDAYAN SDN BHD - 100% (E)
KENDERAAN LANGKASUKA SDN BHD - 100% (S)
SYARIKAT REMBAU TAMPIN SDN BHD - 100% (E/S)
STARISE SDN BHD - 100% (S)
TANJONG KERAMAT TEMERLOH UTARA OMN BHD - 100% (E/S)
SYARIKAT KENDERAAN MELAYU KELANTAN BHD - 100% (E/S)
SKMK INDAH SDN BHD - 100% (D) SKMK STAR SDN BHD - 100% (D)

RAYA EKSPRESS SDN BHD - 100% (D)
PENGANGKUTAN SRI
(PERAK) SDN BHD - 90.5% (E)
SYARIKAT EBBAN SDN BHD - 61.6% (E)
BACIUS PTE LTD - 100% (E)

CITY LINER SDN BHD - 100% (S)
LEN CHEE OMN COMPANY

SDN BHD - 85.4% (S)
36.5%
FOREFRONT ACHIEVEMENT
SDN BHD - 100% (H)
CENTRAL PROVINCE TG KARANG TRANSPORTATION

WELLESLEY TRANSPORT SDN BHD- 70% (S)
CO SDN BHD - 95% (S)
KUALA SELANGOR OMNIBUS
CO BHD - 90.4% (S)
9.2%
SAM LIAN OMNIBUS SDN BHD - 41.9% (S) CORPORATE
SAM LIAN ENTERPRISE SDN BHD - 67.3% (P) STRUCTURE
KENDERAAN BAS P.DICKSON
MIN SEN OMNIBUS CO SDN BHD - 67.3% (S)
SDN BHD - 92.66% (S)
KEND BAS LINGGI SDN BHD - 73% (S) AIRPORT COACH SDN BHD - 39.1% (E)
KEND BAS JELEBU SDN BHD - 83% (S)
KEND BAS SEREMBAN 4.5%

SDN BHD - 57% (S)
KUALA TERENGGANU KUANTAN
EXPRESS COMPANY SDN BHD - 81.4% (D)
LENG HUAT OMNIBUS COMPANY SDN BHD - 96.8% (D)
SYARIKAT EXPRESS KUALA TERENGGANU-

KUALA LUMPUR SDN BHD - 99.9% (D)
THE KUANTAN-KUALA LUMPUR EXPRESS OMNIBUS

COMPANY SDN BHD - 95.1% (E)
LEGEND
(D) - Dormant
(E) - Express Bus Service
(H) - Investment Holding
(P) - Property
(S) - Stage Bus Services
(T) - Travel & Tours
BOARD OF
DIRECTORS
From left to right:
1. Encik Zainal Abidin Jamal

Independent Non-Executive Director
2. YBhg Datuk Sulaiman Daud

3. YBhg Dato’ Mohd Nadzmi Mohd Salleh

Chairman/Managing Director
4. Encik Muhammad Adib Ariffin

5. YM Tengku Mohd Hasmadi Tengku Hashim

Executive Director

DIRECTORS’ PROFILES
YBhg Dato’ Mohd Nadzmi Mohd Salleh

was appointed as Chairman and Managing
Director of the Company on 27 September
2005. He is also the Chairman of the
Nomination and Remuneration Committees.
He holds a Bachelor of Arts in Economic
and Bachelor of Science in Chemistry and
Mathematics from Ohio University, USA.
He also holds a Master of Arts in Economic
and Statistics from Miami University, USA.
Upon graduation, he joined Universiti
Pertanian Malaysia as a lecturer in the
Faculty of Economic Resources and
Agriculture. Subsequently, he joined the
private sector where he reached the
pinnacle of his professional career as the
Managing Director of Perusahaan Otomobil
Nasional Berhad (“PROTON”). After leaving
PROTON, he became an entrepreneur
and is currently the Executive Chairman of
Nadicorp Holdings Sdn Bhd, Express Rail
Link Sdn Bhd and Trisilco Folec Sdn Bhd.
He is the Chairman of J.T. International
Berhad, director of V.S. Industry Berhad
Ranhill Utilities Berhad and Transocean
Holdings Bhd. He also chairs and is a board
YBhg Dato’
member of several private companies.
Mohd Nadzmi Mohd Salleh
YBhg Dato’ Mohd Nadzmi has direct Chairman /
holdings of 3,906,600 ordinary shares in Managing Director
the Company. By virtue of his interest in the
shares of the ultimate holding company,
he is also deemed to have interest in
the shares of the Company and all the
Company’s subsidiaries to the extent the
ultimate holding company has an interest.
He has not been convicted of any offences
in the past 10 years.

YBhg Datuk Sulaiman Daud, 62, was appointed to

the Board on 27 September 2005 as Independent
Non-Executive Director. He is the Chairman of the
Audit Committee and member of the Nomination and
Remuneration Committee. He holds a Diploma in
Agriculture from Universiti Putra Malaysia, a Masters
in Business Administration from IMC, Buckingham,
United Kingdom and a graduate of the Stanford-Insead
Advanced Management Programme at Fontainbleau,
France. He has over 30 years of working experience in
various fields in and outside Malaysia. He is also a director YBhg Datuk
of Pharmaniaga Bhd, Malaysia Packaging Bhd and Sulaiman Daud
Silverlake Axis Ltd, as well as Chairman and director of
Non-Executive
several private companies in Malaysia and Thailand. He is
Director
also the Chairman of the Malaysia/Syria Business Council.
YBhg Datuk Sulaiman has direct holdings of 350,000

ordinary shares in the Company. He has no family
relationship with any director and/or major shareholder
of the Company and has no conflict of interest with the
Company. He has not been convicted of any offences in
the past 10 years.
YM Tengku Mohd Hasmadi Tengku Hashim, 44, was

appointed as the Executive Director of the Company on 27
September 2005. He is an engineer by profession, and holds
a Bachelor of Science degree in Engineering (Industrial) from
Western Michigan University, USA, as well as Certified in
Production and Inventory Management (CPIM). He has vast
experience in the engineering and operations management
field in many reputable companies before he joined PROTON
in 1994. He had an illustrious career in PROTON where he
held several leading positions in the company, locally and
abroad. In 1999, he was appointed as director, Customer
Acquisition and Retention of Proton Cars UK Ltd., which was
a wholly owned automotive distributor for PROTON in the
United Kingdom. Concurrently, he also held the position as
the director of Proton Finance Ltd. and Proton Direct Ltd. In
2001, he was appointed as the Commercial Director of Lotus
Cars Ltd. and Vice President of Lotus Cars USA. Upon his
YM Tengku
return from the United Kingdom in 2003, he joined Nadicorp
Mohd Hasmadi
Holdings Sdn Bhd as General Manager, Corporate Services.
Tengku Hashim
He was also appointed as Executive Director of Park May
Executive Director Berhad and had taken over the day to day operations of Park
May Berhad from the majority shareholder, United Engineers
(Malaysia) Berhad.
YM Tengku Mohd Hasmadi has direct holdings of 350,000

ordinary shares in the Company. He does not have any
family relationship with any other director and/or major
shareholder of the Company and has no conflict of interest
with the Company. He has not been convicted of any
offences in the past 10 years.

Encik Zainal Abidin Jamal, 54, was appointed to the
Board on 2 April 2007 as Independent Non-Executive
Director. He is also a member of the Audit, Nomination
and Remuneration Committees. Encik Zainal, an Advocate
and Solicitor of the High Court of Malaya is the founder
and senior partner of Messrs. Zainal Abidin & Co., an
established law firm in Kuala Lumpur. He read law at the
University of Singapore where he graduated with LLB
(Hons) in 1979. He was enrolled as an Advocate & Solicitor
of the Supreme Court of Singapore in 1980 and the High
Court of Brunei in 1982 and had served as a First Class
Magistrate in the Judicial Department, Brunei between
Encik Zainal 1980 and 1983. He has also held the position of Company
Abidin Jamal Secretary of Harrison Malaysian Plantations Berhad.
Independent He is a non-executive director of several private and public

Non-Executive companies including Lam Soon (M) Berhad, Island &
Director Peninsular Berhad and Kesas Holdings Berhad. He has
extensive experience in corporate matters and is a member
of the Rating Review Committee of Malaysian Rating
Corporation Berhad since October 1996.
Encik Zainal has direct holdings of 350,000 ordinary

shares in the Company. He does not have any family
relationship with any other director and/or major
Encik Muhammad Adib Ariffin, 45, was appointed to

the Board on 2 April 2007 as Independent Non-Executive
Director. He is also a member of the Audit Committee. He
holds a Bachelor in Economic (Major in Accounting and
Finance) from Monash University, Victoria, Australia. He
is a member of Malaysian Institute of Accountant (MIA)
and Fellow of Australian Society of Certificate Practising
Accountants (ASCPA).
Encik Muhammad Adib had served over twenty years at

several corporations, holding various positions in finance,
operations, investments and corporate development.
His industry involvement includes financial services,
construction, manufacturing, property and agriculture.
Encik Muhammad
Adib Ariffin
Encik Muhammad Adib is currently the Managing Director
of Fortitude Assets Management Sdn Bhd. He is also the Independent
Executive Director of Pelita Diwangsa Sdn Bhd. Apart from Non-Executive
these, Encik Muhammad Adib is a board member of IIUM Director
Holdings Sdn Bhd and Chairman of IIUM Resorts Sdn Bhd.
Encik Muhammad Adib has direct holdings of 185,100

ordinary shares in the Company. He does not have any
family relationship with any other director and/or major

Dear Shareholders,
On behalf of the Board of Directors,

I present to you Konsortium
Transnasional Berhad’s (“KTB” or
“Group”) annual report and audited
financial statements for the year ended
31 December 2007.
As you are aware, KTB was

incorporated for the sole purpose of
facilitating the restructuring scheme of
Park May Berhad such that KTB become
the new holding company of Park May
Group which was then admitted to the
Official List of Bursa Malaysia Securities CHAIRMAN’S
Berhad on 15 June 2007, assuming the STATEMENTS
listing status of Park May Berhad.
YBhg Dato’
KTB is principally involved in investment Mohd Nadzmi Mohd Salleh
holding and the principal activity of
the Group is the provision of public
bus transportation comprising stage
and express bus operations within
Peninsular Malaysia.
Our express bus operations provide a

comprehensive coverage and command
the largest market share.

OVERALL BUSINESS OVERVIEW
In 2007, Malaysia turned 50 and it marked another milestone in its economic development. It is a broad-
based and diversified economy and it is the 19th largest trading nation in the world, with trade in excess
of RM1 trillion. The country continues to enjoy political stability with a diverse population. Per capita
income has also increased 26 times to RM20,841 and the incidence of poverty has also been reduced
to less than 6.0%.
The Malaysian economy continued its strong growth momentum, expanding by 6.3% in 2007. Growth
was driven by robust domestic demand despite a weaker external environment which led to moderation in
export growth. Private consumption and investment activities expanded strongly during the year. Private
consumption recorded the highest growth rate since 2000, buoyed by rising disposable income following
high commodity prices, salary increments in both public and private sectors, as well as favourable labour
market and conditions. Strong investment in the manufacturing, services, construction and oil and gas
industries, combined with positive business sentiment, supported expansion in private investment. This
was further reinforced by large inflows of foreign direct investment.
While the contribution of the manufacturing sector remains substantial, of significance is the shift in the
economic structure in the recent few years towards the services sector, which has become the main
driver of growth. The services sector led growth in 2007 was supported by domestic demand activities
and new growth areas in finance, business services and communications.
The Government continued to play a prominent role in supporting and encouraging private sector
activities. In the Budget 2007, the Government reduced the corporate tax rate by two percentage points
over two years, to 27% and 26% in 2007 and 2008 respectively. This helped to reduce further the cost of
doing business and accorded companies with greater capacity to expand capital spending.
INDUSTRY OVERVIEW
KTB continued to operate in a challenging business environment in 2007. The Malaysia economy, as
a whole, has had to contend with an unprecedented rise in oil prices. As a business entity principally
involved with the provision of public bus transportation services in Peninsular Malaysia, we had to incur
huge operating costs in diesel consumption. Since 2005, the price of diesel has increased by 123%
without the corresponding increase in fares.
Against the backdrop of external factors and industry restrictions, our business grew by 14 % in 2007.
During the year, KTB has also expanded its routes, offering high level of services despite the stagnant
fare regulated by the government.
For the year under review, several major corporate and business activities took place in KTB. In March
2007, KTB embarked full-scale on its Compressed Natural Gas (CNG) initiative with the launching and
signing of agreements between the subsidiary of Nadicorp Holdings Sdn. Bhd., Nadi CNG Pte Ltd and
Samsung C & T Corporation. In this regulated industry, bus operators are severely exposed to escalating
costs that are beyond their control. Therefore, for us, we have to be innovative to keep the company
afloat. Thanks to the CNG programme, we have been able to mitigate to some extent the escalating
diesel costs. By using the CNG buses, we experience fuel savings of up to 24%.
Our foray into this technology was backed by our belief in the industry and the viability of the CNG
programme in the country. Undoubtedly, there is huge potential in CNG utilization in the country as the
Federal Government is also committed via several incentives introduced.
On 15 June 2007, we saw another feather in the cap for the company with its listing on the Main Board
of Bursa Malaysia Securities Berhad under Trading/Service Sector. With the consolidation of eight (8)
companies together with Park May Berhad under one single banner of KTB, we have been able to offer
a broad range of products to cater to various customer segments i.e Transnasional, Cityliner, Plusliner
and Nice buses.

In 2007, we also introduced the Transnasional Skyview Double-Decker express buses, plying the Kuala
Lumpur – Kota Bharu route. This product has enabled the bus passengers to experience a new level of
comfort and affordability, offering passengers a panoramic view during the journey. The double-decker
express buses will be extended to other routes in 2008.
In September 2007, we created another first in the country with the introduction of the prepaid e-ticket
branded “Fast Pass” for Cityliner buses, which enables value to be stored onto the card, journey details to be
recorded and the fare value of each journey to be deducted from the stored value on the card. This system
allows customers to use one single electronic ticket when traveling on Cityliner buses to promote cash-free
method of payment.
As the biggest operator of public transportation in Malaysia, it is our obligation to give our customers the
best service, safety and comfort throughout their journey. However, due to the increase in oil pricing, there
is concern that diesel, which is about 30% our cost of sales will increase and further erode our margin.
Therefore, the need for a tool or mechanism to manage this cost is necessary. The Management has agreed
to embark on the initiative to install our Plusliner and Nice buses with GPS (Geographical Positioning System),
to manage these aspects, i.e. customer safety, risk management and cost management.
REVIEW OF FINANCIAL PERFORMANCE
Notwithstanding a challenging operating environment, for the financial year ended 31 December 2007, the
Group recorded approximately RM261 million in revenue, higher than that in the previous year of RM228
million. Profit after tax for the financial year was RM9.7 million, representing a 9 % return on average
shareholders’ funds. The Group’s earning per share for the financial year ended 31 December 2007 stood
at 3.57 sen.
PROSPECTS
We are very much hopeful that a long overdue fare increase will be approved in year 2008. This will assist
our operations in managing the escalating costs of diesel, spare parts, chassis and etc. We also anticipate
that more focus will be given to the public transport industry in the year ahead. The Federal Government has
indicated its emphasis on improving the industry on a holistic approach. This will encourage the public to use
the public transport and minimizing the environmental pollution.
Our continued success hinges on the quality of services offered. We constantly monitor the level of success
with much emphasis given to the areas of maintenance and safety of buses, punctuality and quality of
services, continuous investment in new buses and training and development programmes for the staff.
KTB will expand its horizon beyond the Malaysian shores and it is envisioned that KTB will venture into other
modes of transport and hence become a more integrated transport operator. KTB also has plans to become
a regional transport operator and perhaps ultimately a global player.
ACKNOWLEDGEMENTS
The Board of Directors would like to thank the management team and the hard-working staff for their effort
and commitment especially during the year under review. It was a challenging year indeed due to the increase
of diesel fuel.
We wish to also express our gratitude for the co-operation and support accorded by the Commercial Vehicles
Licencing Board, the Road Transport Department, the Ministry of Finance, the Ministry of Entrepreneur
Development and Co-operation, the Ministry of Transport, Dewan Bandaraya Kuala Lumpur and the various
other relevant Government ministries and agencies and our business partners.
Last but not certainly the least, to our shareholders, we thank you for your unwavering support and for your
continuous faith in us. We will continue to build on the proven record of the Group to continue to strive for
excellence in all areas.

STATEMENT ON
CORPORATE
GOVERNANCE
The Board of Directors is committed to ensuring that the

highest standards of corporate governance are practiced
throughout the Group as a fundamental part of discharging
its responsibilities to protect and enhance shareholder
value and the performance of the Group.
The following statement sets out how the Company has applied the principles and best practices of the
corporate governance as contained in the Malaysian Code of Corporate Governance throughout the
financial year from 1 January 2007 to 31 December 2007.
BOARD OF DIRECTORS
Board Responsibilities
The Board reviews and approves the business plan and budget for the Group. In addition all major
acquisitions, capital expenditures and disposal of investments would have to be approved by the Board.
The Limits of Authority govern the authority limits established by the Board for management to manage the
businesses of the Group.
The Directors, collectively, have a wide range of relevant experience to enable them to discharge their
responsibilities effectively.
Composition of Board
The Board as at 31 December 2007, consist of five (5) directors, of whom one (1) is Chairman/Managing
Director, one (1) Executive Director and three (3) independent non-executive directors. A brief profile of
each director is presented on pages 11 to 13 of the Annual Report.
YBhg Dato’ Mohd Nadzmi Mohd Salleh was appointed Chairman and Managing Director, to be responsible
for managing the Company. He is assisted by YM Tengku Mohd Hasmadi Tengku Hashim, the Executive
Director.
Board Balance
The Company is led and managed by Board of Directors of calibre, with a good mix of skills and experience
ranging from Engineering to Legal, Business Administration, Accountancy and Finance. The appointment of
independent directors is pivotal to good corporate governance accountability as they provide independent
perspectives and judgment such that the interest of the Company, its shareholders, stakeholders, employees
and customers are given due consideration.
APPOINTMENT AND RE-ELECTION OF DIRECTORS
Appointment
The Board appoints its members through a formal process, which is consistent with the Company’s Articles
of Association.
The proposed appointment of a new member to the Board, as well as the proposed re-appointment and re-
election of Director seeking re-election at the Annual General Meeting are recommended by the Nomination
Committee to the Board for approval.

Re-election
In accordance with the Articles of Association of the Company, one-third of the Directors will have to stand for
re-election at each Annual General Meeting.
The Article also provides that all Directors who are appointed by the Board in the course of the year are subject
to re-election by shareholders at the next Annual General Meeting after their appointment.
Directors Training
All Board members have attended the Mandatory Accreditation Programme and Directors are encouraged to
attend continuous education programmes to keep abreast of changes and new developments.
STRUCTURE AND PROCESS
Board Meetings
Board meetings are rescheduled a year ahead in order to enable full attendance at Board meetings. A minimum
of four (4) Board meetings are held during the year. Additional meetings are held as and when required.
There is a formal agenda for all scheduled meetings and board papers are prepared and submitted in advance
to ensure adequate information is available to assist deliberation by Board members.
During the financial year, eight (8) board meetings were held. The attendance of the Directors at board meetings
are presented on page 15 of the Annual Report.
Quality/Supply of Information
Board papers are prepared for all agenda items to ensure relevant information is provided to assist decision
making.
Access to Information/Advice
All Directors, have unrestricted access to any information pertaining to the Company. Directors have the ability
to seek independent advice at the Company’s expense. All Directors have access to the administration and
resources of the Company Secretary in carrying out their duties.
BOARD COMMITTEES
The Board of Directors delegates specific responsibilities to the Board Committees, namely Nomination
Committee, Remuneration Committee and Audit Committee.
Nominating Committee
The Nominating Committee comprises of three (3) members, the majority of whom are Independent
Non-Executive Directors. It is responsible for reviewing the composition, structure and size of the Board,
recommending to the Board candidates for directorship, reviewing the mix of skills, performance and contribution
of each individual director.
The members of the Nominating Committee are as follows:-
• YBhg Dato’ Mohd Nadzmi Mohd Salleh (Chairman);

• YBhg Datuk Sulaiman Daud; and
• Encik Zainal Abidin Jamal.

Remuneration Committee
The Remuneration Committee comprises of three (3) members, the majority of whom are Independent Non-
Executive Directors. The remuneration framework for the Executive Directors and Non-Executives Directors
is recommended by the Remuneration Committee and approved by the Board.
The members of the Remuneration Committee are as follows:-
• YBhg Dato’ Mohd Nadzmi Mohd Salleh (Chairman);

• YBhg Datuk Sulaiman Daud; and
• Encik Zainal Abidin Jamal.
Audit Committee
The terms of reference and other information on the Audit Committee are disclosed in the Audit Committee
Report.
DIRECTORS’ REMUNERATION
The remuneration framework for the Executive Director and Independent Non-Executive Directors was
recommended by the Remuneration Committee and approved by the Board of Directors.
All Non-Executive Directors are paid directors’ fees and in addition, they are paid a meeting allowance for
attendance at each Board and Committee meeting. The directors’ fees are approved by the Company at the
Annual General Meeting in accordance with the Articles of the Association.
The aggregate remuneration of Directors categorized into appropriate components for the financial year ended
31 December 22007 is as follows:-
Category of Directors Fees Allowance Salaries Benefits in kind Total

Executive Directors - RM120,400 RM568,750 - RM689,150
Non-Executive Directors RM91,000 RM15,750 - - RM106,750
Range of Remuneration Executive Directors Non-Executive Directors

RM1 – RM50,000 - 3
RM50,001 – RM100,000 - -
RM100,001 – RM150,000 - -
RM150,001 – RM200,000 - -
RM200,001 – RM250,000 1 -
RM250,001 – RM300,000 - -
RM300,001 – RM350,000 - -
RM350,001 – RM400,000 - -
RM400,001 – RM450,000 - -
RM450,001 – RM500,000 1 -
INVESTOR RELATION AND SHAREHOLDERS COMMUNICATION
Comprehensive corporate information is provided in the Company’s Annual Report. General announcements,
quarterly announcements, and annual results provide the investors and the general public with pertinent
information.
The Annual General Meeting (AGM) is the principal forum for dialogue between the Company and its
shareholders. Shareholders are given ample notice to prepare or present questions to the Board at the AGM.
The AGM is also an excellent opportunity for shareholders to direct questions to the Board in relation to the
Company’s financial performance and the Company’s activities.
Shareholders may also contact the Company Secretary at all times for any further information available to
shareholders.

ACCOUNTABILITY AND AUDIT
Financial Reporting
The Directors have a responsibility to present a balanced and understandable assessment of the Group’s
position and prospects in the quarterly report to Bursa Malaysia Securities Berhad and the Annual Report
to shareholders. The Audit Committee assists the Board in scrutinizing information for disclosure to ensure
accuracy, adequacy and completeness.
The Statement of Directors’ responsibility for preparing the financial statements is set out on page 22 of this
Annual Report.
Internal Control
The Board has overall responsibility for the Group’s approach to assessing risks and implementing controls.
The Board, through the Audit Committee, oversees that a system of internal controls is properly maintained
and regularly reviewed to ensure effectiveness. It entrusts the Audit Committee with the review of the audit
plan, audit processes and most important of all, audit independence.
The Group’s Statement on Internal Control is set out on page 25 to 26 of the Annual Report.
Relationship with External Auditors
Through the Audit Committee, the Group has always maintained a transparent and appropriate relationship
with its external auditor in seeking professional advice and ensuring compliance with the accounting standards
in Malaysia.
The role of the Audit Committee in relation to the external auditors can be found in the Audit Committee Report
set out on page 23 to 24 of the Annual Report.
ADDITIONAL COMPLIANCE INFORMATION
The following information is provided in conformance to the Listing Requirements of the Bursa Malaysia
Securities Berhad:
1. Utilisation of Proceeds raised from Corporate Proposal
During the financial year ended 31 December 2007, no corporate exercise was undertaken
by the Group to raise additional capital or acquisition of major business or assets.
2. Share Buybacks
During the financial year, there were no share buyback by the Company
3. Options, Warrants or Convertible Securities
During the financial year, the Company did not issue any options, warrants or convertible
securities.
4. American Depository Receipt (‘ADR’) or Global Depository Receipt (‘GDR’)
During the financial year, the Company did not sponsor any ADR or GDR.
5. Sanctions and/or Penalties
During the financial year, there were no public sanctions and/or penalties imposed on the
Company and its subsidiaries, Directors or Management by the relevant regulatory bodies.

6. Non-Audit Fees
During the financial year, there were no non-audit fees paid and payable by the Company and its subsidiaries
to the external auditors and/or their affiliated companies.
7. Variation in Results
During the financial year, the Company did not announce any profit estimate, forecast or projection.
8. Profit Guarantee
During the financial year, there was no profit guarantee issued by the Company.
9. Material Contracts
Save as disclosed below, there were no other material contracts entered into by the Group involving Directors
or major shareholders’ interest, either subsisting at the end of the financial year ended 31 December 2007
or entered into since the end of the previous financial year:-
(i) The Sale and Purchase Agreement dated 24 September 2007 (“SPA”) entered into between Kenderaan
Klang Banting Berhad, a subsidiary of KTB as vendor and Maracorp Sdn Bhd as purchaser for the
disposal of a piece of land held under PN 15861, Lot 1102 (HS(D) 3711, No. PT 405), Section 3, Bandar
Banting, Daerah Kuala Langat, Selangor for purchase consideration of RM2,000,000, subject to the
terms and conditions of the SPA.
(ii) The Sale and Purchase Agreement dated 27 December 2007 (“SPA”) entered into between Syarikat
Kenderaan Melayu Kelantan Berhad, a subsidiary of KTB as vendor and Lengkap Suci Sdn Bhd as
purchaser for the disposal of 703 saleable sublots of former Lot 1885 within the Mukim of Bukit Merbau,
District of Pasir Puteh, State of Kelantan for purchase consideration of RM6,000,000, subject to the
terms and conditions of the SPA.
10. Recurrent Related Party Transactions
The Company intends to seek the shareholders’ mandate to allow the Group to enter into recurrent related
party transactions of a revenue or trading nature which are necessary for its day-to-day operations and are
in the ordinary course of business with related parties at the forthcoming Annual General Meeting. The
details of the shareholders’ mandate to be sought are furnished in the Circular to Shareholders dated
2 June 2008.

STATEMENT OF
DIRECTORS’
RESPONSIBILITY
FOR PREPARING
THE FINANCIAL
STATEMENTS
In the course of preparing the annual financial statements of the Group and of the
Company, the Directors are collectively responsible in ensuring that these financial
statements are drawn up in accordance with the requirements of the applicable approved
accounting standards in Malaysia, the provision of the Companies Act, 1965 and the
Listing Requirement of Bursa Malaysia Securities Berhad.
It is the responsibility of the Directors to ensure that the financial reporting of the Group
and the Company present a true and fair view of the state of affairs of the Group and of
the Company as at the end of the financial year and the results and cash flows for the
financial year then ended.
The Directors have adopted and applied the appropriate and relevant accounting
policies on a consistent basis and made judgments and estimates that are prudent and
reasonable in preparing the financial statements of the Group and of the Company.
The financial statements are prepared on a going concern basis and the Director have
ensured that proper accounting records are kept so as to enable the preparation of the
financial statements with reasonable accuracy.
The Statement by Directors pursuant to Section 169 of the Companies Act, 1965 is set
out on page 37 of the Annual Report.

COMPOSITION OF AUDIT COMMITTEE AND MEETINGS
The Audit Committee comprises of three (3) members, all of whom are Non-Executive Directors.
A total of four (4) meetings were held during the year. The status and attendance record of each member
during the year are as follows:-
Composition Designation/Directorship Status Attendance

YBhg Datuk Sulaiman Daud Chairman/Independent Non-Executive 4 out of 4 meetings
Director
Encik Zainal Abidin Jamal Member/Independent Non-Executive 3 out of 4 meetings
Director
Encik Muhammad Adib Ariffin Member/Independent Non-Executive 4 out of 4 meetings
Director
TERMS OF REFERENCE
The Audit Committee serves to implement and support the oversight function of the Board. In fulfilling its
duties and objectives, the Audit Committee is guided by the Terms of Reference as follows:-
Members
The members of the Audit Committee shall be appointed by the Board of Directors.
The Audit Committee shall consist of not less than three (3) members and all the members
must be non-executive directors, with a majority of them being independent directors.
AUDIT
All members of the Audit Committee shall be financially literate and at least one member:- COMMITTEE
a. must be a member of the Malaysian Institute of Accountants; or REPORT
b. if he is not a member of the Malaysian Institute of Accountants, he must have at
least three (3) years working experience and:
i) he must have passed the examination specified in Part 1 of the 1st Schedule of the
Accountants Act 1967; or
ii) he must be a member of one of the associations of accountants specified in Part II of the
1st Schedule of the Accountant Act 1967; or
iii) fulfil such other requirements as prescribed or approved by Bursa Malaysia Securities Berhad.
The Chairperson of the Audit Committee must be an Independent Non-Executive Director.
Meetings
Meetings are to be held on quarterly basis, the quorum for the meeting shall be two (2) members and the
majority of the members present must be independent directors.
All proceedings of the meetings are minuted by the Secretary of the Committee, who shall be the Company
Secretary of the Company.
Authority
The Audit Committee shall have:-
1. the authority to investigate any matter within its terms of reference;
2. the resources which are required to perform its duties;
3. full and unrestricted access to any information pertaining to the Company;
4. direct communication channels with external auditor and person(s) carrying out the internal audit
function or activity;

5. the authority to obtain independent professional or other advice; and
6. be able to convene meetings with the external auditors, the internal auditors or both, excluding the attendance
of other directors and employees of the Company, whenever deemed necessary.
Duties and Responsibilities
To review the following and report the same to the Board of Directors;-
1. with the external auditor, the audit plan;
2. with the external auditor, the external auditor’s evaluation of the system of internal controls;
3. with the external auditor, the external auditor’s audit report;
4. the assistance given by the employees of the Company to the external auditor;
5. the adequacy of the scope, functions, competency and resources of the internal audit functions and that it has
the necessary authority to carry out its works;
6. the internal audit programme, processes, the results of the internal audit programme, processes or investigation
undertaken and whether or not the appropriate action is taken on the recommendations of the internal audit functions;
7. the quarterly results and year end financial statements, prior to the approval by the Board;
8. any related party transaction and conflict of interest situation that may arise within the Company or Group
including any transaction, procedure or course of conduct that raises questions of management integrity;
9. any letter of resignation from the external auditor;
10. whether there is a reason to believe that the Company’s external auditor is not suitable for re-appointment; and
11. nomination and recommendation of a person or persons as external auditor of the Company.
ACTIVITIES
During the financial period, the Audit Committee undertook the following activities:-
1. reviewing the quarterly report on consolidated result;
2. reviewing the external auditor’s management letter and management response;

3. reviewing the status of compliance to the Malaysian Code on Corporate Governance and the Bursa Malaysia’s
Listing Requirements;
4. reviewing the scope of work, resources and annual audit plan of the internal audit;
5. reviewing the audit and investigation reports issued by the internal audit, discussing the findings and
recommendations with Management and ensuring timely resolution of all findings and recommendations;
6. reviewing and deliberating the annual audited financial statements with the external auditors, submissions to
the various regulatory authorities and circular to shareholders including the general mandate on recurrent
related party transactions;
7. Ensuring adequacy, objectivity and effectiveness of the internal audit function; and
8. evaluating the performance of the external auditor and made recommendation to the Board on their re-
appointment and audit fees.
INTERNAL AUDIT
The Company’s internal audit function is outsourced to Messrs. Saidy Ridzah & Associates whose principal
responsibility is to undertake regular and systematic risk-based assessments of the systems of internal control
so as to provide reasonable assurance that such systems are adequate and continue to operate effectively in
managing the key risks of the Company and Group.

INTRODUCTION
Public listed companies are required by the Malaysian Code on Corporate Governance to maintain
a sound system of internal control to safeguard the shareholders’ investment and the assets of the
company. Paragraph 15.27(b) of the Bursa Malaysia’s Listing Requirements indicates the need for the
Directors to include a statement in the annual report on the state of internal control of the company and
its subsidiaries as a group. The Bursa Malaysia’s Statement of Internal Control: Guidance for Directors of
Public Listed Companies (“Guidance”) provides guidance for compliance with these requirements. The
Board is pleased to present the Statement on Internal Control, which has been prepared in accordance
with the Guidance.
RESPONSIBILITY OF THE BOARD
The Board is responsible for the Group’s system of internal control and for reviewing its adequacy and
integrity. The system includes financial, operational and compliance controls and risk management. The
system is designed to manage rather than eliminate the risk of failure to achieve business objectives and
accordingly, it can only provide reasonable and not absolute assurance against material misstatement
or loss.
RISK ASSESSMENT
Apart from financial controls, the Group’s system of internal controls also cover operational
and compliance controls and, most importantly, risk management. As part of the risk
management process, the Board is continuously identifying, assessing and managing
significant business risks faced by the Group throughout the financial year. STATEMENT
CONTROL PROCEDURE AND ENVIRONMENT
OF INTERNAL
CONTROL
The Board whilst maintaining full control and direction over appropriate strategic,
financial,organizational and compliance issues has delegated to executive management
the implementation of the systems of internal control within an established framework.
The Group’s current system of internal control and risk management include the
following key elements:
• an effective Board and Audit Committee which retains control over the Group, reviews the business
operations, approves significant transactions, monitors management and assesses the effectiveness
of internal controls;
• clearly defined lines of authority and divisionalised organization structure to achieve the Group’s
objectives and monitor the conduct and operations within the Group;
• quarterly results of the Group’s financial performance are presented to the Audit Committee for
recommendation for adoption by the Board;
• regular management meetings comprising the senior management to review and discuss significant
issues relating to financial performance, operations, technical and key support functions;
• segregation of duties and physical safeguarding of assets for example limiting of access to assets,
documents and records and establishing custodial responsibilities; and
• clearly defined recruitment processes and relevant training to enhance staff competency levels.

FINANCIAL REPORTING
The Group has adopted the relevant accounting standards for guidance and compliance with regulatory and
statutory requirements. Financial information prepared for submission is duly checked and authorized for
release to the Audit Committee, the Board and Bursa Malaysia Securities Berhad.
INTERNAL AUDIT
The Internal Audit function monitors compliance with the policies and procedures, statutory and regulatory
requirements and provides assurance on the effectiveness of the internal control system within the Group.
The function undertakes regular reviews of the Group’s operations and the system of internal controls. It
provides continuous improvements to the controls and risk management procedures.
ROLE OF AUDIT COMMITTEE
The Audit Committee assist the Board in fulfilling its responsibilities on maintaining a sound system of
internal control and risk management. The Audit Committee monitors the levels of assurance within the
Group through their review of the reports of the internal and external auditors, nature and scope of their work
and by monitoring the implementation progress of audit recommendations.
OTHER ASSURANCE FUNCTION
The Group, being in the public transportation business is additionally governed by strict statutory rules and
regulations prescribed by the Motor Vehicle Licensing Board and Road Transport Department.
CONCLUSION
The Board is of the view that the system of internal control in place for the year under review was sound and
satisfactory and has not resulted in any material losses, contingencies or uncertainties which would require
separate disclosure in the Group’s Annual Report.
The Board remains committed towards operating a sound system of internal control, recognizing that the
system must continually evolve to support the types of business, size and operations of the Group. As such,
the Board will when necessary, put in place appropriate action plans to further enhance the Group’s system
of internal control.

GENERAL OVERVIEW
On June 15, 2007, the entire transport operations of Kumpulan Kenderaan Malaysia Berhad, a subsidiary
company of Nadicorp Holdings Sdn Bhd, merged with Park May Berhad under a new public listed
company called Konsortium Transnasional Berhad, or KTB. This merger is a result of the restructuring
and reverse takeover exercise of Park May Berhad, a PN4 status company then.
Kumpulan Kenderaan Malaysia or KKMB, had a total of eight subsidiary companies that operate both
stage and express buses under the brand name “Transnasional” whilst Park May Berhad operates
“Cityliner” stage buses, “Plusliner” economy express buses and “Nice” executive coaches. With the
merger, all stage buses belonging to KKMB are rebranded as “Cityliner”in order to clearly segment the
usage profile of the stage buses and to strengthen the brand name “Transnasional” as the economy
express which is already gaining popularity for its “cross-country” services.
The enlarged KTB Group has a holding fleet capacity of approximately 1,660 buses/permits comprising
of approximately 930 stage buses/permits and 730 express buses/permits respectively. In order to
remain focus on the respective brand attributes and to be more productive, cost efficient and be fully
accountable in managing the bus operations according to respective express bus routes and stage bus
geographical coverage, the entire transport operations under KTB was rearranged according to brands
i.e. Cityliner, Transnasional, Plusliner and Nice and will start to have their own profit and loss statements
by brands and by regions.
STAGE BUS DIVISION – CITYLINER
Regardless of the subsidiary’s company name, or permit holder, all stage bus operations
under KTB will be bear the brand name, “Cityliner”. All new buses that were manufactured
and released for operations were painted with the new brand identity. Since the birth
of KTB in June 2007, the “Cityliner” operations are headed by a Division Head and are OPERATIONS
divided into five regions/territories as follows: REVIEW
1. Cityliner – Kelantan Operations
Prior to KTB, this operation was run by Syarikat Kenderaan Melayu Kelantan Berhad,
a subsidiary of KKMB and was mixed with the express unit under one portfolio. Now,
Cityliner – Kelantan Operations is an entity by itself, only focusing on stage bus
operations andits profit and loss is monitored and measured separately The outfit has a
capacity of running approximately 270 permits/buses. Approximately half of the fleet will be
replaced once the relatively newer diesel buses are transferred from other Cityliner regions in
phases beginning May 2008.
2. Cityliner – Northern Operations
This region is practically an operations merger of three subsidiary companies of Park May
Berhad i.e. The Min Sen Omnibus Company Sdn Bhd, Sam Lian Omnibus Company Sdn Bhd
and Central Province Wellesley Transport Company Sdn Bhd that operate in Seberang Perai
of Pulau Pinang with Kenderaan Langkasuka Sdn Bhd, a subsidiary company of KKMB, that
operates in the state of Kedah. As a result, there is only one management team in this region
that is led by a Regional Manager and focusing purely on the profitability of the stage bus
operations in the northern part of Semenanjung. The outfit has a capacity of running approximately
185 permits/buses.
3. Cityliner – Selangor Operations
Similar to Northern Operations above, this region sees the operations merger of four subsidiary
companies of Park May Berhad, i.e. the Cityliner Sdn Bhd, The Kuala Lumpur, Klang and Port
Swettenham Omnibus Company Berhad, The Kuala Selangor Omnibus Company Berhad
and Tanjung Karang Transportation Sdn Bhd that operate in the North-western part of Selangor
with Kenderaan Klang Banting Berhad, a subsidiary of KKMB, that operates in the South-
western part of Selangor. This outfit is now under one management team and led by a Regional
Manager, has a capacity of running approximately 225 permits/buses.
4. Cityliner – Negeri Sembilan Operations
Just like the two regions above, this region is an operations merger of four subsidiary companies
under Jelebu Holdings Sdn Bhd, a subsidiary company of Park May Berhad that operates in Western
part of Negeri Sembilan with two other subsidiary companies of KKMB, i.e. Starise Sdn Bhd and the
stage bus outfit of Syarikat Rembau Tampin Sdn Bhd that operates the Eastern part of Negeri
Sembilan. A Regional Manager was appointed to lead one integrated team to focus on the profitability
of running the entire stage bus operations in Negeri Sembilan. The resulted merger has a capacity
of running approximately 215 permits/buses. Besides running ordinary routes in housing areas and
on main roads of Negeri Sembilan, the Cityliner buses here also serve the Kuala Lumpur International
Airport (KLIA) and Low Cost Carrier Terminal (LCCT) from Seremban, Nilai and Banting.
5. Cityliner – Pahang Operations
After transferring the express outfit to Transnasional’s management in the Eastern Region, a subsidiary
company of KKMB, i.e. Syarikat Tanjong Keramat Temerloh Omnibus Bhd is now focusing only
on stage bus operations in Central Pahang covering Temerloh and Jerantut. It has a capacity of
running approximately 35 permits/buses.
Although the organization into regions was planned from the birth of KTB, the process of breaking
into regions require some time to mature and to be accepted fully by all level of staff especially the
unionized employees as they are employed under the names of various subsidiary companies.
Nevertheless, this is done to eliminate duplication of management and to reduce all costs associated
in running all routes for each region. Also, for the purpose of accounting and having the full financial
year accountability, the Regional Profit & Loss can only start from January 2008.
For all new Cityliner buses, a repair and maintenance contact is signed with the original chassis
manufacturer for a period of eight years. Thus, professional mechanics using original spare parts are
being deployed under a fixed cost monthly contract or sen per kilometer basis to service, maintain and
repair these new buses for at least half of its usage life.
For existing buses in Kelantan and Negeri Sembilan operations, the chassis repair and maintenance
is also outsourced to a third party contactor using sen per kilometer formula since June 2007. This is
to ensure stability in maintenance cost plus this system can be regarded as self regulated in the
sense that the outsource contractor will only benefit if buses are always on the road earning kilometers.
Thus, the contractor will ensure that service and maintenance are of quality and the frequency of
breakdown is minimized. It is envisage that other regions will follow this concept soon. In the long run,
the above method is seen to be more economical. In addition, the operations team can focus more
time on revenue generation including minimizing revenue leakages.
To combat escalating diesel fuel cost which had risen thrice over the last three years without income
compensation from Government’s controlled passenger fares, Cityliner operations in Selangor and
Negeri Sembilan has pioneered the use of Compressed Natural Gas (CNG) buses since June 2007. To
date, 27 and 22 buses are already operating in Selangor and Negeri Sembilan respectively. The
plan is to add 253 CNG buses in the two regions above plus the Northern Region. However, not all
buses operating in the three regions mentioned above can be converted to CNG due to extremely
limited locations of CNG refueling stations nationwide that are equipped with high speed refueling
nozzle suitable for heavy and commercial vehicles like buses. Unlike taxis, the CNG tank on buses
has fourteen times more capacity.
Due to its complex operations serving all sorts of commuting public routes and townships, Cityliner
operations has also embarked on right-sizing strategy that relates vehicle size to daily income potential.
Towards the end of 2007, mini-sized buses of 7 meter long and 29 seating capacity and midi-sized
buses of 10 meter long with 37 seating capacity have started to be deployed to “low income potential”
areas as opposed to the ordinary 12 meter long buses with 45 seating capacity. This is to ensure that
right capital cost is deployed to matching areas. On the other hand, four units of double-decker buses
with 68 seating capacity were introduced in early 2007 for high traffic areas in Western Selangor into
Kuala Lumpur. A periodical review of each bus route versus its income versus type/age of vehicle
deployed is being conducted by each operating region to optimize revenue and minimize cost.

For revenue generation initiative, Cityliner operations in Negeri Sembilan has embarked on prepaid
card e-ticketing technology called “Fast Pass” since September 2007. The objective is to increase
passenger loyalty and minimize cash handling thus, minimizing the risk of fraud or revenue leakages.
The same technology was also applied on certain routes in Selangor Region beginning May 2008. It
is planned that all regions will utilize this prepaid card e-ticket technology by the end of 2008.
EXPRESS BUS DIVISION
Under the new holding company KTB, the Express Operations Division is divided into three brands with their
own profit and loss statements as follows:
A. “Transnasional”
All express vehicles under various subsidiary companies of KKMB particularly under Transnasional Express
Sdn Bhd, Syarikat Kenderaan Melayu Kelantan Berhad, Kenderaan Labu Sendayan Sdn Bhd, Syarikat
Tanjong Keramat Temerloh Omnibus Sdn Bhd and Syarikat Rembau Tampin Sdn Bhd bear the brand
name “Transnasional”. These vehicles then are further divided according to the bus routes as tabled below.
Therefore, there will be no duplication of route management by different subsidiary companies as happened
in the past.
• Transnasional Express – Western Region
This region monitors and manages all express routes within this region that stretches from Kuala
Lumpur in the south, all the way to Kangar up north. Headed by a General Manager, this region
operates 22 routes with a holding capacity of 215 buses/permits.
• Transnasional Express – Eastern Region
This region monitors and manages all express routes within this region plus all routes into Western
Region and into the eastern part of Southern Region. The originating points in Eastern Region are
mainly from Kota Bharu, Kuala Terengganu and Kuantan. Headed by a Regional General Manager,
this region operates 28 routes with a holding capacity of 210 buses/permits.
• Transnasional Express – Southern Region
Similar to Eastern Region, this region monitors and manages all express routes within this region, all
routes into Western Region and all routes between the western part of Southern Region and Eastern
Region. The originating points in Southern Region are mainly from Johor Bahru, Melaka and Seremban.
Headed by a Regional General Manager, this region operates 28 routes with a holding capacity of 165
buses/permits.
As part of cost reduction and fleet availability improvement exercise, all new “Transnasional” buses are under
the repair and maintenance contract with the original chassis manufacturer. A similar contract was also signed
with three third party contractors for the existing buses. For all regions, buses with higher seating capacity
like the 41-seater single-deck “Club Class” and the 69-seater double-deck “Skyview” were introduced towards
the end of 2007 to mitigate the rising costs of operations. The biggest cost component is still the fuel cost.
Due to the fact that CNG cost is still cheaper than diesel, 74 CNG buses designed specifically for express
type operations are planned to be on the road by the end of 2008. These buses will be deployed mostly in the
“Transnasional – Southern Region” in view of the potential availability of CNG’s refueling infrastructure. For
Western Region, by relocating their main depot from Kuala Lumpur to Kajang in July 2007, it has helped to
reduce some costs associated with it.
In terms of safety, all new “Transnasional” buses met the European ECE R66 safety regulations on roof crash
standards and equipped with front row seat belts since 2005. For passengers convenience, “Transnasional”
tickets can be purchased 60 days ahead of departure time from 170 agents nationwide whose 42 of them are
Petronas fuel station operators.

In terms of product innovation, the new 2007 version of e-ticketing for “Transnasional” is able to place a
passenger who prefers to sit beside his/her own gender. “Transnasional” is still the first and only to introduce
adjustable headrest for its newly launched economy express 41-seater single-deck “Club Class” coach. Again
“Transnasional” is the first in the country to introduce a high capacity economy express with its 69-seater
double-deck “Skyview”. Not only it can carry more passengers, its “twin-configuration” seats can be separated
to create more shoulder room for each and every passenger on board. The 24-tonne tri-axle coach with
its unique design has taken into consideration all aspect of safety for example, an emergency door on the
upper deck that is in-line with the hidden ladder placed at the bottom deck, two escape hatches on the roof,
a tapered roof design for greater stability, rear entry staircase, and seat belts for certain rows. The 12 units
of new “Transnasional Skyview” now serve large number of passengers from Kota Bharu, Kuala Terengganu
and Melaka to Kuala Lumpur. This will soon cover Johor Bharu, Butterworth and Alor Setar when additional
“Skyview” buses are expected to be ready by August 2008.
B. “Plusliner”
All economy express vehicles under various subsidiary companies of Park May Berhad, currently a new
subsidiary to KTB, had already being branded as “Plusliner”. The year 2007 basically saw “Plusliner”
claiming back its glorious title of the past as the “king of the highway express” with majority of its 60
running buses today are less than a year old and were painted with new liveries symbolizing the “green
PLUS highway”. The immediate replacement program was necessary due to the fact that all “Plusliner”
buses under Park May Berhad’s PN4 status in the past had exceeded their service age according to
the law. Thus, majority of “Plusliner” buses today were fortunate enough to be under an in-house financing
scheme with the original chassis manufacturer that took place in phases from June 2006.
Today, “Plusliner” is the most frequent highway express from Kuala Lumpur to main cities like Ipoh,
Kuantan, Penang and from Seremban to Johor Bahru. For example, for Ipoh – Kuala Lumpur sector,
“Plusliner” operates 30 departure times daily from either side as early as 4.30 a.m. “Plusliner” also serves
other destinations like Kulim, Alor Setar, Bukit Kayu Hitam, Padang Besar, Lumut (Pangkor), Batu Gajah/
Seri Iskandar and following a formal approval from the authority in mid May 2008, Plusliner now extends
its express service from Ipoh via new Guthrie expressway to Shah Alam and to KLIA/LCCT.
In terms of product innovation, “Plusliner” was the first to introduce a unique 14 solo-seater combined with
12 couple-seater arrangement in its 41-seater single deck highway economy express. “Plusliner” was
also the first to introduce digital quality entertainment via big screen LCD for its passengers to interact
with on-board sms contest while watching movies. Plusliner Sdn Bhd pioneered the repair and maintenance
contract with the original chassis manufacturer since the year 2000. Hence the entire fleet is under such
scheme from day one.
Headed by a Sales Operations Manager, “Plusliner” operates 14 routes with a potential capacity of
95 buses/permits. Some of the buses are still under production. Majority of its sales outlet are managed
by professional ticketing agents and have started to deploy the same e-ticketing system that is used by
“Transnasional” beginning 2008.
C. “Nice” executive coach
All executive/luxury coaches under Plusliner Sdn Bhd, a subsidiary company of Park May Berhad, as
well as under Transnasional Express Sdn Bhd, a subsidiary of KKMB, are both branded as “Nice”
executive coaches. “Nice” was one of the firsts in the country to introduce executives coaches with full on-
board services hosted by steward/stewardess throughout the journey. A more luxurious sub-brand “Nice++”
was further launched in June 2005, the first executive coach in the country with individual LCD screen for
its passengers to watch a selection of pre-programmed movie of their choice. “Nice” executive coaches
are also the first and only kind in the country with its service pantry located at the front of the coach to
give its passengers an “airline” feel, at the same time isolate its passengers from the undesirable frontal
traffic noises and view. Today, compared to its competitors, “Nice++” is the most frequent executive coach
services with 20 departure times daily between Kuala Lumpur and Singapore.

Currently, “Nice” operates a total 35 executive coaches from Kuala Lumpur to Singapore, Penang, Kuantan
and Ipoh. After obtaining a formal approval in mid May 2008, “Nice” extends its executive services from its
wholly-owned and managed KL Main Terminal in the Old Railway Building right in the center of Kuala
Lumpur to KLIA and LCCT. This service was long requested by “Nice” passengers from destinations outside
Kuala Lumpur and it is also open to the general public in Klang Valley who wanted to experience ‘traveling
in style’ all the way to the airport.
In KL Main Terminal and Copthorne Orchid Hotel in Singapore, “Nice” passengers can relax and enjoy free
snacks/drinks and also surf the net at the fully air-conditioned ‘executive lounges’ specially prepared for
them. Also, in mid May 2008, “Nice” launches another first in the country, i.e. the executive coach service
between Singapore and Kuantan. It is envisaged that more discerning passengers will frequent the first
gateway of the new Eastern Economic Corridor.
Several new buses are under production to beef up the existing fleet. When completed, “Nice” will have
a fleet capacity of 51 buses, the same quantity that it had several years ago had it not due to Park May
Berhad’s PN4 status. Nevertheless, “Nice” is still the largest operator in the country providing luxury/
executive coach services and is supported by more than 20,000 members that were registered as “Nice”
loyalty card members whom are privileged with points that can be exchanged with free tickets, merchandizes
and holiday packages.
ANCILLARY BUSINESS DIVISION
This division focuses on generating revenue from non-ticketing business such as managing special/event
charters, holiday packages, government travel warrants and advertising on buses as additional income to
the group. This division has enormous potential for expansion arising from other business opportunities
surrounding the public bus transport industry.
OPERATIONS SUMMARY
Apart from merging areas of management duplication following the birth of KTB and breaking them into
respective regions by brands and management territories, all operating divisions are focusing on initiatives to
continually reduce operating costs, rationalize vehicle fleet size and routings, concentrate on profitable and
high potential routes, increase efforts to lure more passengers, simplify management control system and at the
same time provide the best in quality service including vehicle and passenger safety.
Following last August’s tragic incident involving a competitor in Bukit Gantang that claimed many lives, KTB
has launched many new initiatives on top of the current practices focusing on vehicle and passenger safety.
A Geographical Positioning System (GPS) i.e. a tool for fleet management/monitoring system via satellite are
now made available on all “Nice” executive coaches, “Plusliner” highway economy express and a number of
“Transnasional” coaches since February 2008.
At the same time, KTB had been working closely with Malaysian Institute for Road Safety (MIROS) and
Jabatan Keselamatan Jalanraya (JKJR) for the trial and implementation on new driving/working shift pattern
to reduce fatigue level amongst express drivers. It is proven that reduction in fatigue level helps to reduce
accidents. So far, all “Nice”, “Plusliner” and selected “Transnasional” routes are already implementing this new
method. A new driver log book focusing on vehicle thorough inspection at the beginning of driver’s working shift
plus details on driver’s driving and resting hours, was also launched in April 2008.
In addition, as at May 2008, KTB has sent more than 500 of its express drivers for a two-day driving refresher
course conducted by the Automotive Center of Excellence (ACE), an independent party that is fully recognized
by the authority to improve driver’s competency especially on safe driving. This is an ongoing process.
KTB with its four leading brands is now the largest public bus operator in the country and will continue to
upgrade its services and standards from time to time. It is hoped that each of its four brands will continue to be
the most preferred brands in the industry that focuses on providing the best service at the right cost through
innovations, whilst emphasizing professionalism, quality and safety as pre-requisites in conducting day-to-day
business of transporting passengers all year round.

This page is intentionally left blank
34 Directors Report
37 Statement by Directors
37 Statutory Declaration
38 Report of the Auditors
39 Consolidated Income Statement
40 Consolidated Balance Sheet
41 Consolidated Statement of Changes in Equity
42 Consolidated Cash Flow Statement
43 Income Statement
44 Balance Sheet FINANCIAL

44 Statement of Changes in Equity
STATEMENTS
45 Cash Flow Statement
46 Notes to the Financial Statements
85 Analysis of Shareholding
87 List of Properties
Proxy Form

617580-T
KONSORTIUM TRANSNASIONAL BERHAD
(Incorporated in Malaysia)
DIRECTORS’ REPORT
The directors hereby present their report together with the audited financial statements of the Group and of the Company
for the financial year ended 31 December 2007.
PRINCIPAL ACTIVITIES
The principal activity of the Company is investment holding.
The principal activities of the subsidiaries are described in Note 38 to the financial statements.
There have been no significant changes in the nature of the principal activities during the financial year.
RESULTS
Group Company
RM’000 RM’000
Profit for the year 9,717 189
Attributable to: Equity holders of the Company 9,896 189

Minority interests (179) -
9,717 189
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the
financial statements.
In the opinion of the directors, the results of the operations of the Group and the Company during the financial year were
not substantially affected by any item, transaction or event of a material and unusual nature other than:
(a) the effects arising from the gain on disposal of property, plant and equipment as disclosed in Note 4 to the financial
statements; and
(b) the effects arising from changes in estimates where the residual values of certain buses were revised resulting in an
increase in the Group’s profit before tax by RM3,006,543 as disclosed in Note 2.4 to the financial
statements.
DIRECTORS
The names of the directors of the Company in office since the date of the last report and at the date of this report are:
Dato’ Mohd Nadzmi bin Mohd Salleh

Datuk Sulaiman bin Daud
Tengku Mohd Hasmadi bin Tengku Hashim
Zainal Abidin bin Jamal
Muhammad Adib bin Ariffin
DIRECTORS’ BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the
Company was a party, whereby the directors might acquire benefits by means of the acquisition of shares in or debentures
of the Company or any other body corporate.
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than
benefits included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed
salary of a full-time employee of the Company as shown in Note 6 to the financial statements) by reason of a contract made
by the Company or a related corporation with any director or with a firm of which he is a member, or with a company in
which he has a substantial financial interest, except as disclosed in Note 32 to the financial statements.

617580-T
DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings, the interests of directors in office at the end of the financial year
in shares in the Company or its related corporations during the financial year were as follows:
<-- Number of Ordinary Shares of RM0.50 Each --->

The Company 1.1.2007 Alloted Sold 31.12.2007
Direct Interest:
Dato’ Mohd Nadzmi bin Mohd Salleh 2,000,000 1,800,000 - 3,800,000

Zainal Abidin bin Jamal - 350,000 - 350,000
Muhammad Adib bin Ariffin - 310,000 310,000

The Company 1.1.2007 Alloted Sold 31.12.2007
Indirect Interest:
Datuk Sulaiman bin Daud - 350,000 - 350,000

Tengku Mohd Hasmadi bin Tengku Hashim - 350,000 - 350,000

1.1.2007 Alloted Sold 31.12.2007
Ultimate Holding Company
- Nadi Corporation Sdn. Bhd.
Indirect Interest:
Dato’ Mohd Nadzmi bin Mohd Salleh 8,500,000 1,500,000 - 10,000,000
Dato’ Mohd Nadzmi bin Mohd Salleh by virtue of his interest in shares of the ultimate holding company is also deemed
interested in shares of the Company and all the Company’s subsidiaries to the extent the ultimate holding company
has an interest.
ISSUE OF SHARES
During the financial year, pursuant to the Restructuring Scheme of Park May Berhad (“Park May”) as disclosed
in Note 33 to the financial statements, the Company increased its issued and paid-up ordinary share capital from
RM126,000,000 to RM150,998,674 by way of issuance of 49,997,348 ordinary shares of RM0.50 each for the
acquisition of the entire issued and paid up ordinary share capital of Park May.
The new ordinary shares issued during the financial year rank pari passu in all respects with the existing ordinary
shares of the Company.
IRREDEEMABLE CONVERTIBLE SECURED LOAN STOCKS (“ICSLS”)
On 26 June 2007, the Company issued 63,000,000 of 3-year ICSLS 2007/2010 at nominal amount of RM1 each. The
ICSLS was issued to the holder of RM63,000,000 outstanding Commercial Papers/ Medium Term Notes (“CP/MTN”)
of Park May as full and final settlement of the CP/ MTN. The issuance of the ICSLS was pursuant to the Restructuring
Scheme of Park May as disclosed in Note 33 to the financial statements.

617580-T
OTHER STATUTORY INFORMATION
(a) Before the income statements and balance sheets of the Group and of the Company were made out, the directors
took 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 for doubtful debts and satisfied themselves that all known bad debts had been written off and that
adequate provision had been made for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting
records in the ordinary course 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 directors are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements
of the Group and of the Company inadequate to any substantial extent; and
(ii) the values attributed to the current assets in the financial statements of the Group and of the Company
misleading.
(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render
adherence to the existing method of valuation of assets or liabilities of the Group and of the Company misleading
or inappropriate.
(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report
or financial statements of the Group and of the Company which would render any amount stated in the financial
statements misleading.
(e) As at the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial
year which secures the liabilities of any other person; or
(ii) any contingent liability of the Group or of the Company which has arisen since the end of the financial year.
(f) In the opinion of the directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period
of twelve months after the end of the financial year which will or may affect the ability of the Group or of the
Company to meet their obligations 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 year and the date of this report which is likely to affect substantially the results of the operations
of the Group or of the Company for the financial year in which this report is made.
SIGNIFICANT EVENTS
In addition to the significant events disclosed elsewhere in this report, other significant events are disclosed in Note
14(b), 21, 30 and 33 to the financial statements.
SUBSEQUENT EVENT
Details of a subsequent event are disclosed in Note 36 to the financial statements.
AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the directors dated 28 April 2008.
Dato’ Mohd Nadzmi Tengku Mohd Hasmadi

bin Mohd Salleh bin Tengku Hashim

617580-T
STATEMENT BY DIRECTORS
PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
We, Dato’ Mohd Nadzmi bin Mohd Salleh and Tengku Mohd Hasmadi bin Tengku Hashim, being two of the directors
of Konsortium Transnasional Berhad, do hereby state that, in the opinion of the directors, the accompanying financial
statements set out on pages 39 to 84 are drawn up in accordance with the provisions of the Companies Act, 1965 and
applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of the financial position of the
Group and of the Company as at 31 December 2007 and of the results and the cash flows of the Group and of the
Company for the year then ended.
Signed on behalf of the Board in accordance with a resolution of the directors dated 28 April 2008.
Dato’ Mohd Nadzmi Tengku Mohd Hasmadi

bin Mohd Salleh bin Tengku Hashim
STATUTORY DECLARATION
PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
I, Tan Swee Hock, being the officer primarily responsible for the financial management of Konsortium Transnasional
Berhad, do solemnly and sincerely declare that the accompanying financial statements set out on pages 39 to 84 are
in my opinion correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue
of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by

the abovenamed Tan Swee Hock at
Kuala Lumpur in the Federal Territory
on 28 April 2008 Tan Swee Hock
Before me,

REPORT OF THE AUDITORS TO THE MEMBERS OF
We have audited the financial statements set out on pages 39 to 84. These financial statements are the responsibility
of the Company’s directors.
It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report
our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose.
We do not assume responsibility to any other person for the content of this report.
We conducted our audit in accordance with applicable Approved Standards on Auditing in Malaysia. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by the directors, as well as evaluating the overall presentation of the financial statements. We believe
that our audit provides a 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 and applicable Financial Reporting Standards in Malaysia so as to give a true and fair view of:
(i) the financial position of the Group and of the Company as at 31 December 2007 and of the results and the
cash flows of the Group and of the Company for the year 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 Company and by its
subsidiaries of which 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 as auditors, as indicated in Note 38 to the financial statements, being financial statements that have been
included in the consolidated financial statements.
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial
statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the
consolidated financial statements 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 material to
the consolidated financial statements and did not include any comment required to be made under Section 174(3) of
the Act.
Ernst & Young Ahmad Zahirudin bin Abdul Rahim

No: AF 0039 No. 2607/12/08(J)
Chartered Accountants Partner
Kuala Lumpur, Malaysia

28 April 2008

617580-T
CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2007
Note 2007 2006
RM’000 RM’000
Revenue 3 261,250 228,909
Cost of sales (217,460) (191,547)
Gross profit 43,790 37,362

Other income 4 22,299 8,748
Other operating expenses 7 (39,599) (27,290)
Profit from operations 26,490 18,820

Finance costs 8 (12,711) (8,092)
Profit before tax 13,779 10,728

Income tax expense 9 (4,062) 3,354
Profit for the year 9,717 14,082
Attributable to:
Equity holders of the Company 9,896 14,082
Minority interests (179) -
9,717 14,082
Earnings per share attributable to

equity holders of the Company (sen)
Basic, for profit for the year 10(a) 3.57 5.59
Diluted, for profit for the year 10(b) 2.62 5.59
The accompanying notes form an integral part of the financial statements.

617580-T
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2007
Note 2007 2006

RM’000 RM’000
ASSETS
Non-current assets
Property, plant and equipment 11 252,211 183,863
Prepaid land lease payment 12 2,317 2,775
Investment properties 13 1,002 -
Other investments 14(c) 109 109
Goodwill on consolidation 15 87,084 -
Deferred tax assets 26 3,961 1,862
346,684 188,609
Current assets
Inventories 16 1,416 1,333
Other receivables 17 21,478 17,754
Trade receivables 18 16,706 1,405
Amount due from related companies 19 51,798 58,073
Tax recoverable 2,748 1,585
Cash and bank balances 20 2,312 3,809
96,458 83,959
TOTAL ASSETS 443,142 272,568
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company
Share capital 21 150,999 126,000

Reserves (47,351) (57,277)
Shareholders’ equity 103,648 68,723

Irredeemable convertible secured loan stocks (“ICSLS”) 30 57,911 -
Minority interests 1,504 -
Total equity 163,063 68,723
Non-current liabilities
Borrowings 23 116,308 91,684
Provision for retirement benefits 25 10,707 9,051
Deferred tax liabilities 26 7,936 4,198
ICSLS 30 2,222 -
137,173 104,933
Current liabilities
Borrowings 23 61,519 43,023
Other payables 27 24,948 14,996
Trade payables 28 21,282 17,799
Amount due to related companies 29 24,643 18,789
Provision for taxation 6,468 3,734
Provision for retirement benefits 25 484 571
ICSLS 30 3,562 -
142,906 98,912
Total liabilities 280,079 203,845
TOTAL EQUITY AND LIABILITIES 443,142 272,568

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to Equity of the Company Minority Total

Non-Distributable Interests equity
Capital Distributable
Share reserve Merger Exchange retained
capital (Note 22) deficit reserves ICSLS earnings Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
617580-T
At 1 January 2006 126,000 5,811 (77,170) - - - 54,641 - 54,641

Profit for the year - - - - - 14,082 - - -
Transfer to merger deficit - - 14,082 - - (14,082) 14,082 - 14,082
At 31 December 2006 126,000 5,811 (63,088) - - - 68,723 - 68,723
At 1 January 2007 126,000 5,811 (63,088) - - - 68,723 - 68,723

Profit for the year - - - - - 9,896 9,896 (179) 9,717
Transfer to merger deficit - - 9,896 - - (9,896) - - -
Issue of ordinary shares: -
- Acquisition of subsidiary (Note 21) 24,999 - - - - - 24,999 1,683 26,682
Issue of ICSLS (Note 30) - - - - 57,911 - 57,911 - 57,911
Foreign currency translation reserve - - - 30 - - 30 - 30
At 31 December 2007 150,999 5,811 (53,192) 30 57,911 - 161,559 1,504 163,063
ANNUAL REPORT 2007

41
617580-T
CONSOLIDATED CASH FLOW STATEMENT

2007 2006
RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 13,779 10,728

Adjustments for:
Depreciation of property, plant and equipment 30,434 26,333
Amortisation of prepaid land lease payment 65 125
Amortisation of investment properties 21 -
Provision for doubtful debts 1,425 -
Bad debts written off 102 -
Provision for retirement benefits 1,608 537
Gain on disposal of prepaid land lease payment (1,611) -
Gain on disposal of property, plant and equipment (13,378) (4,603)
Dividend income - (7)
Interest income (1,169) -
Interest expense 12,711 8,092
Operating profit before working capital changes 43,987 41,205

Decrease in inventories 236 406
Decrease/(increase) in receivables 7,906 (5,075)
(Decrease)/increase in payables (22,256) 6,271
Changes in related companies balances 13,294 (19,930)
Cash generated from operations 43,167 22,877

Taxes paid (1,575) (1,286)
Interest paid (12,513) (8,092)
Retirement benefits paid (1,482) (2,195)
Net cash generated from operating activities 27,597 11,304
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (8,388) (269)

Proceeds from disposal of property, plant and equipment 21,993 16,642
Proceeds from disposal of prepaid lease land payment 2,004 -
Interest received 4 -
Dividends received - 7
Acquisition of subsidiaries 1,896 -
Net cash generated from investing activities 17,509 16,380
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayment of bank borrowings (45,342) (26,097)

Repayment of ICSLS (1,291) -
Net cash used in financing activities (46,633) (26,097)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (1,527) 1,587

Effects of foreign exchange rate changes 30 -
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR 3,809 2,222
CASH AND CASH EQUIVALENTS AT THE END OF YEAR (NOTE 20) 2,312 3,809

617580-T
INCOME STATEMENT
Note 2007 2006

RM’000 RM’000
Other income 4 3,965 -
Other operating expenses 7 (3,117) (11)
Profit/(loss) from operations 848 (11)
Finance costs 8 (198) -
Profit/(loss) before tax 650 (11)
Income tax expense 9 (461) -
Profit/(loss) for the year 189 (11)

617580-T
BALANCE SHEET AS AT 31 DECEMBER 2007
Note 2007 2006

RM’000 RM’000
ASSETS
Non-current assets
Property, plant and equipment 11 218 -
Investment in subsidiaries 14 150,309 125,000
Deferred tax assets 26 1,498 -
152,025 125,000
Current assets
Inventories 16 18 -
Other receivables 17 1,069 -
Amount due from related companies 19 65,204 730
Cash and bank balances 20 8 54
66,299 784
TOTAL ASSETS 218,324 125,784
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Company

Share capital 21 150,999 126,000
ICSLS 30 57,911 -
Accumulated losses (728) (917)
Total equity
208,182 125,083
Non-current liability
ICSLS 30 2,222 -
Current liabilities
Other payables 27 628 699
Amount due to related companies 29 3,559 2
Provision for taxation 171 -
ICSLS 30 3,562 -
7,920 701
Total liabilities 10,142 701
TOTAL EQUITY AND LIABILITIES 218,324 125,784
STATEMENT OF CHANGES IN EQUITY

Share Accumulated
Capital ICSLS Losses Total
RM’000 RM’000 RM’000 RM’000
At 1 January 2006 126,000 - (906) 125,094

Loss for the year - - (11) (11)
At 31 December 2006 126,000 - (917) 125,083
At 1 January 2007 126,000 - (917) 125,083

Profit for the year - - 189 189
Issue of ordinary shares:
- Acquisition of subsidiary (Note 21) 24,999 - - 24,999
Issue of ICSLS (Note 30) - 57,911 - 57,911
At 31 December 2007 150,999 57,911 (728) 208,182

617580-T
CASH FLOW STATEMENT

2007 2006
RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) before tax 650 (11)

Adjustments for:
Depreciation 8 -
Interest expense 198 -
Operating profit/(loss) before working capital changes 856 (11)

Increase in inventories (18) -
Increase in other receivables (1,069) -
Changes in related companies balances 2,083 150
Decrease in payables (71) (104)
Net cash generated from operating activities 1,781 35
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (226) -

Acquisition of subsidiary (240) -
Additional investment in a subsidiary (70) -
Net cash used in investing activities (536) -
CASH FLOWS FROM FINANCING ACTIVITY

Repayment of ICSLS, representing net cash used in financing activity (1,291) -
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (46) 35

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR 54 19
CASH AND CASH EQUIVALENTS AT THE END OF YEAR (NOTE 20) 8 54

617580-T
NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2007
1. CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and listed on the Main
Board of Bursa Malaysia Securities Berhad. The registered office of the Company is located at No. 38, Jalan Chow
Kit, 50350 Kuala Lumpur.
The immediate holding, penultimate holding and ultimate holding company of the Company is Kumpulan Kenderaan
Malaysia Berhad (“KKMB”), Nadicorp Holdings Sdn Bhd and Nadi Corporation Sdn. Bhd. respectively, all of which
are companies incorporated in Malaysia.
The principal activity of the Company is investment holding. The principal activities of the subsidiaries are described
in Note 38 to the financial statements. There have been no significant changes in the nature of these activities during
the financial year.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the
directors on 28 April 2008.
2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of Preparation
The financial statements comply with the provisions of the Companies Act, 1965 and applicable Financial Reporting
Standards in Malaysia. At the beginning of the current financial year, the Group and Company had adopted new and
revised FRSs which are mandatory for financial periods beginning on or after 1 January 2007 as described fully in
Note 2.3.
The financial statements of the Group and Company have also been prepared on a historical basis and are presented
in Ringgit Malaysia (RM) and all values are rounded to the nearest thousand (RM’000) except when otherwise
indicated.
2.2 Summary of Significant Accounting Policies
(a) Subsidiaries and Basis of Consolidation

(i) Subsidiaries
Subsidiaries are entities over which the Group has the ability to control the financial and operating
policies so as to obtain benefits from their activities. The existence and effect of potential voting rights
that are currently exercisable or convertible are considered when assessing whether the Group has
such power over another entity.
In the Company’s separate financial statements, investments in subsidiaries are stated at cost less
impairment losses. On disposal of such investments, the difference between net disposal proceeds
and their carrying amounts is included in profit or loss.
(ii) Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries as at the balance sheet date. The financial statements of the subsidiaries are prepared for
the same reporting date as the Company. Subsidiaries acquired in 2005 under internal group
restructuring arrangements are accounted for in consolidation under the merger method.
Under the merger method of accounting, the results of the subsidiaries are included in the consolidated
income statement as if the merger had been effected throughout the current financial year and previous
years. On consolidation, the difference between the carrying value of the investment and the fair value
of shares issued is transferred to a merger reserve or deficit, as applicable. Any resulting debit
difference is adjusted against any suitable reserve. Where it is impractible to determine the fair value
of shares issued, the nominal value is used instead.

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2. SIGNIFICANT ACCOUNTING POLICIES (CONTD.)
2.2 Summary of Significant Accounting Policies (Contd.)
(a) Subsidiaries and Basis of Consolidation (Contd.)
(ii) Basis of Consolidation (Contd.)

Acquisitions of subsidiaries other than those acquired under internal group restructuring arrangements,
are accounted for using the purchase method. The purchase method of accounting involves allocating
the cost of the acquisition to the fair value of the assets acquired and liabilities and contingent liabilities
assumed at the date of acquisition. The cost of an acquisition is measured as the aggregate of the fair
values, at the date of exchange, of the assets given, liabilities incurred or assumed, and equity
instruments issued, plus any costs directly attributable to the acquisition.
Any excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable
assets, liabilities and contingent liabilities represents goodwill. Any excess of the Group’s interest in
the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition
is recognised immediately in profit or loss.
Minority interests represent the portion of profit or loss and net assets in subsidiaries not held by the
Group. It is measured at the minorities’ share of the subsidiaries’ identifiable assets and liabilities at
the acquisition date and the minorities’ share of changes in the subsidiaries’ equity since then.
In preparing the consolidated financial statements, intragroup balances, transactions and unrealised
gains or losses are eliminated in full. Uniform accounting policies are adopted in the consolidated
financial statements for like transactions and events in similar circumstances.
(b) Goodwill
Goodwill acquired in a business combination is initially measured at cost being the excess of the
cost of business combination over the Group’s interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities. Following the initial recognition, goodwill is measured at cost less any
accumulated impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment,
annually or more frequently if events or changes in circumstances indicate that the carrying value may
be impaired. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating
to the entity sold.
(c) Revenue Recognition
Revenue is recognised when it is probable that the economic benefits associated with the transaction will
flow to the Group and the amount of the revenue can be measured reliably.
(i) Passenger ticket sales are recognised as revenue, net of discounts, in the income statement when the
transportation services are rendered.
(ii) Charter services, insurance commission and goods fare are recognised as revenue in the income
statement when the transportation services are rendered.
(iii) Management fees are recognised as income as and when the services are rendered.
(iv) Advertisement income is recognised on a straight line basis over the period of service.
(v) Revenue relating to the sale of buses is recognised upon the transfer of risks and rewards.
(d) Property, Plant and Equipment and Depreciation
All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included
in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can
be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.

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(d) Property, Plant and Equipment and Depreciation (Contd.)

Subsequent to recognition, property, plant and equipment are stated at cost less accumulated depreciation
and any accumulated impairment losses. Freehold land has an unlimited useful life and therefore is not
depreciated. Depreciation of other property, plant and equipment is provided for on a straight-line basis to
write off the cost of each asset to its residual value over the estimated useful life, at the following annual rates:
Long term leasehold buildings Over the remaining period of the lease
Buildings 50 years
Workshop equipment 5 - 10 years
Furniture, fittings and office equipment 3 - 10 years
Ticketing machines 5 years
Renovations 10 years
Computer equipment 5 years
Buses and motor vehicles 4 - 10 years
Capital work-in-progress is not depreciated.
Land and buildings of the Group have not been revalued since they were first revalued in 1981. The
directors have not adopted a policy of regular revaluation of such assets. As permitted under the
transitional provisions of International Accounting Standard No.16 (Revised): Property, Plant and
Equipment adopted by the Malaysian Accounting Standards Board, these assets are stated at their
respective valuation less accumulated depreciation and accumulated impairment losses.

The revaluation surplus realised through depreciation of the revalued property, plant and equipment is
taken directly to retained earnings.
The residual values, useful life and depreciation method are reviewed at each financial year-end to ensure
that the amount, method and period of depreciation are consistent with previous estimates and the expected
pattern of consumption of the future economic benefits embodied in the items of property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. The difference between the net disposal proceeds, if any
and the net carrying amount is recognised in profit or loss.
(e) Investment Properties
Investment properties are properties which are held either to earn rental income or for capital appreciation
or for both. Such properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and any accumulated
impairment losses.
Investment properties are derecognised when either they have been disposed off or when the investment
property is permanently withdrawn from use and no future economic benefit is expected from its disposal.
Any gains or losses on the retirement or disposal of an investment property are recognised in profit or loss
in the year in which they arise.
Investment properties are depreciated over 50 years.
(f) Inventories
Inventories are stated at lower of cost and net realisable value.
Cost is determined using the first in, first-out method. The cost of inventories represents cost of purchase.
Net realisable value represents the estimated selling price less all estimated costs to be incurred in selling
and distribution.

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(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. In principle, 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. Deferred tax is not recognised if the temporary difference arises from goodwill
or negative goodwill or from the initial recognition of an asset or liability in a transaction which is not a
business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is
realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at
the balance sheet date. Deferred tax is recognised as income or an expense and included in the profit
or loss for the period, except when it arises from a transaction which is recognised directly in equity, in
which case the deferred tax is also recognised directly in equity, or when it arises from a business
combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill or
the amount of any excess of the acquirer’s interest is the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities over the cost of the combination.
(h) Employee Benefits
(i) Short Term Benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the year
in which the associated services are rendered by employees of the Group. Short term accumulating
compensated absences such as paid annual leave are recognised when services are rendered
by employees that increase their entitlement to future compensated absences, and short term non
accumulating compensated absences such as sick leave are recognised when the absences occur.
(ii) Defined Contribution Plans
Defined contribution plans are post-employment benefit plans under which the Group pays fixed
contributions into separate entities or funds and will have no legal or constructive obligation to pay
further contributions if any of the funds do not hold sufficient assets to pay all employee benefits
relating to employee services in the current and preceding financial years. Such contributions are
recognised as an expense in the profit or loss as incurred. As required by law, companies in Malaysia
make such contributions to the Employees Provident Fund (“EPF”). Some of the Group’s foreign
subsidiaries also make contributions to their respective countries’ statutory pension schemes.
(iii) Defined Benefit Plan
The Group operates an unfunded, defined benefit Retirement Benefit Scheme (“the Scheme”) for its
eligible employees. The Group’s obligations under the Scheme are determined based on triennial
actuarial valuation where the amount of benefit that employees have earned in return for their service
in the current and prior years is estimated. That benefit is discounted using the Projected Unit Credit
Method in order to determine its present value. Actuarial gains and losses are recognised as income
or expense over the expected average remaining working lives of the participating employees when
the cumulative unrecognised actuarial gains or losses for the Scheme exceed 10% of the present
value of the defined benefit obligation. Past service cost is recognised immediately to the extent
that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average
period until the amended benefits become vested.
The amount recognised in the balance sheet represents the present value of the defined benefit
obligations adjusted for unrecognised actuarial gains and losses and unrecognised past service cost.
Any assets resulting from this calculation is limited to the net total of any unrecognised actuarial losses
and past service cost, and the present value of any economic benefits in the form of refunds or
reductions in future contributions to the plan.
Actuarial gains and losses arises mainly from changes in actuarial assumptions and differences
between actuarial assumptions and what has actually occurred. Such gains and losses are credited
or charged to the income statement over the expected average remaining working lives of the eligible
employees participating in the Scheme.
(i) 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 probable that an outflow of resources embodying economic benefits will be required to settle the
obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance
sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money
is material, the amount of a provision is the present value of the expenditure expected to be required to
settle the obligation.
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(j) Leases
(i) Finance Leases
Assets acquired by way of hire-purchase or finance leases are stated at an amount equal to
the lower of their fair values and the present value of the minimum lease payments at the
inception of the leases, less accumulated depreciation and impairment losses. The corresponding
liability is included in the balance sheet as borrowings. In calculating the present value of the
minimum lease payments, the discount factor used is the interest rate implicit in the lease, when
it is practicable to determine; otherwise, the Company’s incremental borrowing rate is used. Any
initial direct costs are also added to the carrying amount of such assets.
Lease payments are apportioned between the finance costs and the reduction of the outstanding
liability. Finance costs, which represent the differences between the total leasing commitments
and the fair value of the assets acquired, are recognised in the profit and loss over the term of
the relevant lease so as to produce a constant periodic rate of charge on the remaining balance
of the obligations for each accounting period.
The depreciation policy for leased assets is in accordance with that for depreciable property,
plant and equipment as described in Note 2.2(d).
(ii) Operating Leases
Operating lease payments are recognised as an expense on a straight-line basis over the term
of the relevant lease. The aggregate benefit of incentives provided by the lessor is recognised as
a reduction of rental expense over the lease term on a straight-line basis.
In the case of a lease of land and buildings, the minimum lease payments or the up-front payments
are allocated, whenever necessary, between the land and the buildings elements in proportion
to the relative fair values for leasehold interests in the land element and buildings element of the
lease at the inception of the lease. The up-front payment represents prepaid lease payments and
are amortised on a straight-line basis over the lease term.
(k) Impairment of Non-financial Assets
The carrying amounts of assets, other than investment property, inventories, and deferred tax assets
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 to determine the amount of
impairment loss.
For goodwill the recoverable amount is estimated at each balance sheet date or more frequently
when indicators of impairment are identified.
For the purpose of impairment testing of these assets, recoverable amount is determined on an
individual asset basis unless the asset does not generate cash flows that are largely independent
of those from other assets. If this is the case, recoverable amount is determined for the cash-generating
unit (CGU) to which the asset belongs to. Goodwill acquired in a business combination is, from the
acquisition date, allocated to each of the Group’s CGUs, or groups of CGUs, that are expected to
benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the
Group are assigned to those units or groups of units.
An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and
its value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. Where the carrying amount of an asset exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
Impairment losses recognised in respect of a CGU or groups of CGUs are allocated first to reduce the
carrying amount of any goodwill allocated to those units or groups of units and then, to reduce the
carrying amount of the other assets in the unit or groups of units on a pro-rata basis.

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(k) Impairment of Non-financial Assets (Contd.)
An impairment loss is recognised in profit or loss in the period in which it arises. Impairment loss
on goodwill is not reversed in a subsequent period. An impairment loss for an asset other than goodwill
is reversed if, and only if, there has been a change in the estimates used to determine the asset’s
recoverable amount since the last impairment loss was recognised. The carrying amount of an asset
other than goodwill is increased to its revised recoverable amount, provided that this amount does not
exceed the carrying amount that would have been determined (net of amortisation or depreciation)
had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for
an asset other than goodwill is recognised in profit or loss, unless the asset is carried at revalued
amount, in which case, such reversal is treated as a revaluation increase.
(l) Foreign Currencies
(i) Functional and Presentation Currency
The individual financial statements of each entity in the Group are measured using the currency
of the primary economic environment in which the entity operates (“the functional currency”).
The consolidated financial statements are presented in Ringgit Malaysia (RM), which is also the
Company’s functional currency.
(ii) Foreign Currency Transactions
The results and financial position of foreign operations that have a functional currency different
from the presentation currency (RM) of the consolidated financial statements are translated into
RM as follows:
- Assets and liabilities for each balance sheet presented are translated at the closing rate
prevailing at the balance sheet date;
- Income and expenses for each income statement are translated at average exchange rates for
the year, which approximates the exchange rates at the dates of the transactions; and
- All resulting exchange differences are taken to the foreign currency translation reserve within equity.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated
as assets and liabilities of the foreign operations and are recorded in the functional currency of
the foreign operations and translated at the closing rate at the balance sheet date.
(m) Financial Instruments
Financial instruments are recognised in the balance sheet when the Group has become a party to the
contractual provisions of the instruments.
Financial instruments are classified as liabilities or equity in accordance with the substance of the
contractual arrangement. Interest, dividends, gains and losses relating to the financial instrument
classified as a liability, are reported as expense or income. Distributions to holders of financial
instruments classified as equity are recognised directly in equity. Financial instruments are offset
when the Group has a legally unforceable right to offset and intends to sell either on a net basis or to
realise the asset and settle the liability simultaneously.
(i) Cash and Cash Equivalents
For the purposes of the cash flow statements to financial instruments, cash and cash equivalents
include cash on hand and at bank and deposit at cash and short term highly liquid investments
which have an insignificant risk of changes in value, net of outstanding bank overdrafts.
(ii) Other Non-Current Investments
Non-current investments other than investments in subsidiaries and associates are stated at
cost less impairment losses. On disposal of an investment, the difference between the net
disposal proceeds and its carrying amount is recognised in profit or loss.
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(m) Financial Instruments (Contd.)
(iii) Receivables
Receivables are carried at anticipated realisable values. Bad debts are written off when identified.
An estimate is made for doubtful debts based on a review of all outstanding amounts as at the
balance sheet date.
(iv) Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future for
goods and services received.
(v) Equity Instruments
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity
in the period in which they are declared.
The transaction costs of an equity transaction are accounted for as deduction from equity, net of
tax. Equity transaction costs comprise only those incremental external costs directly attributable
to the equity transaction which would otherwise have been avoided.
(vi) Irredeemable Convertible Secured Loan Stocks (“ICSLS”)

The ICSLS are regarded as compound instruments consisting of a liability and an equity
component. At the date of issue, the fair value of the liability component is estimated using the
prevailing market interest rate for a similar convertible loan stocks. The difference between the
proceeds of issue of the ICSLS and the fair value assigned to the liability component, representing
the conversion option is included in equity. The liability component is subsequently stated at
amortised cost using the effective interest rate method until extinguished on conversion, whilst
the value of the equity component is not adjusted in subsequent periods. Attributable transaction
costs are apportioned and deducted directly from the liability and equity component based on
carrying amounts at the date of issue.
Under the effective interest rate method, the interest expense on the liability component is
calculated by applying the prevailing market interest rate for a similar convertible loan stocks to
the instrument at the date of issue. The difference between this amount and the interest paid is
added to the carrying amount of the ICSLS.
(vii) Interest Bearing Loans and Borrowings
All loans and borrowings are initially recognised at the fair value of the consideration received less
directly attributable transaction costs. After initial recognition, interest bearing loans and
borrowings are subsequently measured at amortised cost using the effective method.

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2.3 New and Revised Financial Reporting Standards (“FRS”)
On 1 January 2007, the Group adopted the following FRSs mandatory for financial periods beginning on
or after 1 January 2007:
FRS 6 Exploration for and Evaluation of Mineral Resources

FRS 117 Leases
FRS 119 Employee Benefits
FRS 124 Related Party Disclosures
Other than FRS117, the adoption of the above FRSs does not result in significant changes in accounting
policies of the Group.
The Group has not early adopted the following new and revised FRSs and IC Interpretations:
Effective for financial periods beginning on or after 1 July 2007:
FRS 107 Cash Flow Statements

FRS 111 Construction Contracts
FRS 112 Income Taxes
FRS 118 Revenue
FRS 120 Accounting for Government Grants and Disclosure of Government Assistance
FRS 121 The Effect of Changes in Foreign Exchange Rates
FRS 134 Interim Financial Reporting
FRS 137 Provisions, Contingent Liabilities and Contingent Assets
IC Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities
IC Interpretation 2 Members’ Shares in Co-operative Entities and Similar Instruments
IC Interpretation 5 Rights to Interests arising from Decommissioning, Restoration and
Environmental Rehabilitation Funds
IC Interpretation 6 Liabilities arising from Participating in a Specific Market
- Waste Electrical and Electronic Equipment
IC Interpretation 7 Applying the Restatement Approach under FRS 1292004
- Financial Reporting in Hyperinflationary Economies
IC Interpretation 8 Scope of FRS 2
Effective date deferred indefinitely:
FRS 139 Financial Instruments: Recognition and Measurement
The effects of FRS 139, if any, upon its initial recognition are exempted from disclosure. The other new
and revised FRSs and IC Interpretations are not early adopted by the Group and are not expected to have
a significant impact on the financial statements of the Group upon their initial application
The principal effects of the changes in accounting policies resulting from the adoption of the other new/
revised FRSs are discussed below.
(a) FRS 117: Leases
Leasehold land held for own use
Prior to 1 January 2007, leasehold land held for own use was classified as property, plant and
equipment and was stated at cost less accumulated depreciation and impairment losses. The adoption
of the revised FRS117 has resulted in a change in the accounting policy relating to the classification
of leases of land and buildings. Leases of land and buildings are classified as operating or finance
leases in the same way as leases of other assets and the land and buildings elements of a lease of
land and buildings are considered separately for the purposes of lease classification.
Leasehold land held for own use is now classified as operating lease and where necessary, the
minimum lease payments or the up-front payments are allocated between the land and buildings
elements in proportion to the relative fair values for leasehold interests in the land and buildings
elements of the lease respectively at the inception of the lease. The up-front payment represents
prepaid lease payments and are amortised on a straight-line basis over the lease term.
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2.3 New and Revised Financial Reporting Standards (“FRS”) (Contd.)
(a) FRS 117: Leases (Contd)
Leasehold land held for own use (Contd)
The Group has applied the change in accounting policy in respect of leasehold land in accordance
with the FRS 117. At 1 January 2007, the unamortised amount of leasehold land is retained as the
surrogate carrying amount of prepaid lease payments as allowed by the transitional provisions. The
reclassification of leasehold land as prepaid lease payments has been accounted for retrospectively by
restating the following opening balances of the Group as at 1 January 2007. There were no effects on
the consolidated income statement for the year ended 31 December 2007.
Estimates of the extent to which the consolidated balance sheet as at 31 December 2007 is higher or
lower than it would have been had the previous policy been applied in the current year is as follows:
Increase /
(Decrease)
RM’000
Group
Property, plant and equipment (2,317)

Prepaid land lease payments 2,317
The effects of adopting FRS 117 has been accounted for retrospectively and comparatives have been
restated as follows:
Previously Increase /
Stated (Decrease) Restated
RM’000 RM’000 RM’000
Group
(i) At 1 January 2006

Property, plant and equipment 173,022 (5,985) 167,037
Prepaid land lease payments - 5,985 5,985
(ii) At 31 December 2006

Property, plant and equipment 186,638 (2,775) 183,863
Prepaid land lease payments - 2,775 2,775

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2.4 Changes in Estimates
The revised FRS 116: Property, Plant and Equipment requires the review of the residual value and useful
life of an item of property, plant and equipment at least at each financial year end. The Group revised
the residual values with effect from 1 January 2007. The revisions were accounted for prospectively as
a change in accounting estimates and as a result, the depreciation charges of the Group for the current
financial year have been reduced by RM3,006,543.
2.5 Significant Accounting Estimates and Judgements
Key Sources of Estimation Uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance
sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are discussed below.
(i) Depreciation of buses
The cost of buses is depreciated on a straight-line basis over the assets’ useful lives. Management
estimates the useful lives of these buses to be 10 years. These are common life expectancies applied
in the bus industry. Changes in the expected level of usage could impact the economic useful lives
and the residual values of these assets, therefore future depreciation charges could be revised.
(ii) Impairment of goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This requires an
estimation of the value-in-use of the cash-generating units (“CGU”) to which goodwill is allocated.
Estimating a value-in-use amount requires management to make an estimate of the expected future
cash flows from the CGU and also to choose a suitable discount rate in order to calculate the present
value of those cash flows. The carrying amounts of goodwill as at 31 December 2007 were
RM87,083,517 (2006: Nil). Further details are disclosed in Note 15.
(iii) Deferred tax assets
Deferred tax assets are recognised for all unused tax losses and unabsorbed capital allowances to
the extent that it is probable that taxable profit will be available against which the losses and capital
allowances can be utilised. Significant management judgement is required to determine the amount
of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable
profits together with future tax planning strategies.
The total carrying value of recognised tax losses and capital allowances of the Group was RM3,961,000
(2006: RM1,862,000) and the unrecognised tax losses, capital allowances and other temporary
differences of the Group was RM1,615,000 (2006: RM453,000).

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3. REVENUE
GROUP
2007 2006
RM’000 RM’000
Express bus fare 169,863 149,266

Stage bus fare 67,040 64,710
Advertisement income 3,473 10,746
Charter services 6,868 2,871
Others 14,006 1,316
261,250 228,909
4. OTHER INCOME
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Management fees 15 2,120 2,000 -

Advertisement income 1,965 - 1,965 -
Gain on disposal of property, plant and
equipment 13,378 4,603 - -
Gain on disposal of prepaid land
lease payment 1,611 - - -
Dividend income 17 7 - -
Interest income 1,169 - - -
Rental income 2,492 680 - -
Others 1,652 1,338 - -
22,299 8,748 3,965 -
5. STAFF COSTS
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Wages and salaries 40,888 39,807 692 -

Pension costs - defined
- contribution plans 4,008 3,603 115 -
Social security costs 822 769 10 -
Provision for retirement benefits (Note 25) 1,608 537 - -
Other staff related expenses 10,570 8,014 18 -
57,896 52,730 835 -
Included in staff costs of the Group and of the Company are executive directors’ remuneration amounting RM689,150
(2006: Nil) and RM689,150 (2006: Nil) respectively as further disclosed in Note 6.

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6. DIRECTORS’ REMUNERATION
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Directors of the Company
Executive:
Salaries and other emoluments 689 - 689 -
Non-Executive:
Fees 91 - 91 -
Salaries and other emoluments 16 - 16 -

107 - 107 -
Total 796 - 796 -
The number of directors of the Company whose total remuneration during the year fell within the following bands is
analysed below:
Number of directors
2007 2006
Executive directors:
RM200,001 - RM250,000 1 -
RM450,001 - RM500,000 1 -
Non-executive directors:
RM1 - RM50,000 3 -
7. OTHER OPERATING EXPENSES
Included in other operating expenses are:
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Staff costs (Note 5) 57,896 52,730 835 -

Auditors’ remuneration:
Statutory audit
- Auditors of the Company 357 99 15 15
- Other auditors 35 26 - -
Non-executive directors’
remuneration (Note 6) 107 - 107 -
Depreciation of property,
plant and equipment 30,434 26,333 8 -
Amortisation of prepaid land
lease payments 65 125 - -
Amortisation of investment properties 21 - - -
Provision for doubtful debts 1,425 17 - -
Bad debts written off 102 - - -
Rental expense
- holding company 352 - 352 -
- others 3,975 3,586 - -
Hire of coaches 2,906 4,821 - -

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8. FINANCE COSTS
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Finance lease 11,495 8,092 - -

Term loan 867 - - -
ICSLS 198 - 198 -
Others 151 - - -
12,711 8,092 198 -
9. INCOME TAX EXPENSE

GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Income tax:
Current year’s provision 3,117 5 ,209 171 -
Under/(over) provision in prior year 177 ( 3,769) - -
3,294 1,440 171 -
Deferred taxation:
Relating to origination and reversal of
temporary differences (749) (1,850) 290 -
Under/(over) provision in prior year 1,517 (2,944) - -
768 (4,794) 290 -
4,062 (3,354) 461 -
Domestic income tax is calculated at the Malaysian statutory rate of 27% (2006: 28%) of the estimated assessable
profit for the year. The domestic statutory tax rate will be reduced to 26% from the current year’s rate of 27%,
effective year of assessment 2008. The computation of deferred tax as at 31 December 2007 has reflected these
changes. Taxation for other jurisdiction is calculated at the rates prevailing in the respective jurisdiction.

617580-T
9. INCOME TAX EXPENSE (CONTD.)
A reconciliation of income tax expense applicable to profit/(loss) before tax at the statutory income tax rate to
income tax expense at the effective income tax rate of the Group and Company are as follows:
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Profit/(loss) before tax 13,779 10,728 650 (11)

Taxation at Malaysian statutory
tax rate of 27% (2006: 28%) 3,720 3,004 176 (3)
Effect of different tax rate of 20% (32) (131) - -
Deferred tax recomputed based on
the new corporate rate (220) (87) - -
Income not subject to tax (3,028) - - -
Expenses not deductible for tax purposes 1,688 175 285 -
Utilisation of previously
unrecognised tax losses (62) - - -
Deferred tax assets not recognised in
respect of current year tax losses
and other deductible temporary
differences 302 398 - 3
Under/(over) provision of income
tax expense in prior year 177 (3,769) - -
Under/(over) provision of deferred tax
in prior year 1,517 (2,944) - -
4,062 (3,354) 461 -
Tax savings during the financial year arising from:
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Utilisation of current year tax losses 157 - - -

Utilisation of previously unrecognised
tax losses 62 - - -
10. EARNINGS PER SHARE
(a) Basic
Basic earnings per share is calculated by dividing the profit for the year attributable to the equity holders of
the Company by the weighted average number of ordinary shares in issue during the financial year, as follows:
GROUP
2007 2006
Profit attributable to ordinary equity holders of the Company (RM’000) 9,896 14,082
Weighted average number of ordinary shares in in issue (‘000) 276,999 252,000
Basic earnings per share (sen) 3.57 5.59

617580-T
10. EARNINGS PER SHARE (CONTD.)
(b) Diluted
For the purpose of calculating diluted earnings per share, the profit for the year and the weighted average
number of ordinary shares in issue during the year have been adjusted for the dilutive effects of all potential
ordinary shares i.e. ICSLS.
GROUP
2007 2006
Profit attributable to ordinary equity holders of the Company (RM’000) 9,896 14,082
Weighted average number of ordinary shares in issue (‘000) 276,999 252,000

Effect of dilution on ICSLS (‘000) 100,800 -
Adjusted weighted average number of ordinary shares
in issue and issuable (‘000) 377,799 252,000
Diluted earnings per share (sen) 2.62 5.59
11. PROPERTY, PLANT AND EQUIPMENT
Office
Equipment Computer
and Equipment Buses
Land Furniture and Capital and
and and Workshop work-in- Motor
Group Building* Fittings Equipment Progress Vehicles Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 31 December 2007
Cost/Valuation
At 1 January 16,528 7,592 1,971 - 286,444 312,535

Arising from acquisition of
subsidiaries (Note 14(b)) 5,300 558 109 - 27,194 33,161
Additions 1 1,041 1,046 1,360 70,788 74,236
Write off - - (352) - - (352)
Disposals (4,237) - - - (20,259) (24,496)
At 31 December 17,592 9,191 2,774 1,360 364,167 395,084
Accumulated Depreciation
and Impairment
At 1 January 3,441 6,444 1,783 - 117,004 128,672

Charge for the year 180 288 296 - 29,670 30,434
Write off - - (352) - - -
Disposals (261) - - - (15,620) ( 15,881)
At 31 December 3,360 6,732 1,727 - 131,054 142,873
Net Carrying Amount
At 31 December 14,232 2,459 1,047 1,360 233,113 252,211

617580-T
11. PROPERTY, PLANT AND EQUIPMENT (CONTD.)
Office
Equipment Computer
and E
quipment Buses
Land Furniture and and
and and Workshop Motor
Group Building* Fittings E
quipment Vehicles Total
RM’000 RM’000 RM’000 RM’000 RM’000
At 31 December 2006
Cost/Valuation
At 1 January 16,528 7,549 11,583 260,628 296,288

Additions - 43 54 51,863 51,960
Disposals - - (9,666) (26,047) (35,713)
At 31 December 16,528 7,592 1,971 286,444 312,535
Accumulated Depreciation and Impairment
At 1 January 3,260 6,236 8,029 111,726 129,251

Charge for the year 181 208 288 25,656 26,333
Disposals - - (6,534) (20,378) (26,912)

At 31 December 3,441 6,444 1,783 117,004 128,672
Net Carrying Amount
At 31 December 13,087 1,148 188 169,440 183,863
* Land and Buildings
Building Building
on on
Freehold Leasehold Freehold
Group Land Land Land Total
RM’000 RM’000 RM’000 RM’000
At 31 December 2007
Cost/Valuation
At 1 January 6,539 5,347 4,642 16,528

Acquisition of subsidiaries - - 5,300 5,300
Additions 1 - - 1
Disposal (3,441) - (796) (4,237)
At 31 December 3,099 5,347 9,146 17,592
Representing:
At cost 131 2,169 11,362 13,662
At valuation 2,968 3,178 - 6,146
3,099 5,347 11,362 19,808
Accumulated Depreciation and Impairment

At 1 January - 2,136 1,305 3,441
Charge for the year - 95 85 180
Disposal - - (261) (261)
At 31 December - 2,231 1,129 3,360
Net Carrying Amount
At 31 December
At cost 131 1,070 8,017 9,218
At valuation 2,968 2,046 - 5,014
3,099 3,116 8,017 14,232

617580-T
* Land and Buildings
Office
Equipment Computer
and E
quipment Buses
Land Furniture and and
and and Workshop Motor
Group Building* Fittings E
quipment Vehicles Total
RM’000 RM’000 RM’000 RM’000 RM’000
At 31 December 2006
Cost/Valuation
At 1 January / 31 December 6,539 5,347 4,642 16,528
Representing:
At cost 3,571 2,169 4,642 10,382
At valuation 2,968 3,178 - 6,146
6,539 5,347 4,642 16,528
and Impairment
At 1 January - 2,045 1,215 3,260

Charge for the year - 91 90 181
At 31 December - 2,136 1,305 3,441
Net Carrying Amount
At 31 December
At cost 3,571 1,121 3,337 8,029
At valuation 2,968 2,090 - 5,058
6,539 3,211 3,337 13,087
Office
Equipment Computer
and Equipment
Furniture and
and Workshop
Group Fittings Equipment Total
RM’000 RM’000 RM’000
Company
At 31 December 2007
Cost
At 1 January - - -
Additions 168 58 226
At 31 December 168 58 226

At 1 January - - -
Charge for the year 6 2 8
Net Carrying Amount

617580-T
(a) Included in property, plant and equipment of the Group are buses with net book value of RM198,188,862 (2006:
RM149,312,903) held under finance lease arrangements. Details of the terms and conditions of the hire
purchase and finance lease arrangements are disclosed in Note 24.
(b) Due to the absence of historical records, the net book values of revalued land and buildings, had the revalued
assets been carried at historical cost less accumulated depreciation, are not disclosed.
(c) During the year, the Group acquired property, plant and equipment with an aggregate cost of RM74,235,122
(2006: RM51,959,625) of which RM65,848,467 (2006: RM46,133,934) was acquired by means of finance
lease arrangement. Buses costing RM11,536,089 (2006: RM1,749,152) were purchased on credit pending
financing arrangements as at the end of the current financial year.
(d) The net carrying amounts of property, plant and equipment pledged as securities for borrowings (Note 23) and
ICSLS (Note 30) are as follows:
GROUP
2007 2006
RM’000 RM’000
Freehold land and buildings 6,951 1,042

Leasehold building 510 517
7 ,461 1 ,559
12. PREPAID LAND LEASE PAYMENTS

GROUP
2007 2006
RM’000 RM’000
Group

Cost
At 1 January 3,152 6,438

Additions - 155
Disposal (469) (3,441)
At 31 December 2,683 3,152
Accumulated Amortisation
At 1 January 377 453

Amortisation for the year 65 125
Disposal (76) (201)
At 31 December 366 377
Carrying amounts
As at 31 December 2,317 2,775
Analysed as:
Long term leasehold land 316 436
Short term leasehold land * 2,001 2 ,339
2,317 2 ,775
* Short term leases refer to leasehold land that has an unexpired period of 50 (2006: 50) years or less.
Leasehold land with an aggregate carrying value of RM1,091,000 (2006: RM1,133,000) are pledged as securities
for borrowings (Note 23).

617580-T
13. INVESTMENT PROPERTIES
Freehold land
and buildings
Group RM’000
At 31 December 2007
Cost
At 1 January -
Acquisition of subsidiary (Note 14(b)(i)) 1,023
At 31 December 1,023
Accumulated Amortisation
At 1 January -
Amortisation for the year 21
At 31 December 21
Net carrying amount

At 31 December 1,002
Certain investment properties leased to third parties are charged as securities for borrowings (Note 23).
Fair value of investment properties as at 31 December 2007 was estimated by the directors based in market value
of comparable properties, to be approximately RM1,106,000.
14. INVESTMENTS
(a) Investment in Subsidiaries

COMPANY
2007 2006
RM’000 RM’000
Unquoted shares at cost 150,309 125,000
The details of the subsidiaries are set out in Note 38.
(b) Acquisition of Subsidiaries
(i) Park May Berhad (“Park May”)
On 6 June 2007, pursuant to the Restructuring Scheme of Park May as disclosed in Note 33, the Company
had acquired the entire issued and paid-up share capital of Park May comprising 74,996,022 ordinary
shares of RM1.00 each for a total purchase consideration of RM24,998,674 satisfied by the issuance of
49,997,348 new ordinary shares in the Company at par value of RM0.50 per ordinary share.
The acquired subsidiary has contributed the following results to the Group:
2007
RM’000
Revenue 26,554
Profit for the year 11
If the acquisition had occurred on 1 January 2007, the Group’s revenue and profit for the year would have
been RM282,332,973 and RM6,996,995.

617580-T
14. INVESTMENTS (CONTD.)
(b) Acquisition of Subsidiaries (Contd.)
(i) Park May Berhad (“Park May”) (Contd.)
The fair values of the assets acquired and liabilities assumed from the acquisition of the subsidiary were as follows:
RM’000
Property, plant and equipment 33,086

Investment properties 1,023
Deferred tax assets 742
Inventories 319
Trade and other receivables 14,301
Tax recoverable 148
Cash and bank balances 1,934
Trade and other payables (34,605)
Borrowings (71,955)
Retirement benefits (1,443)
Deferred tax liabilities (3,519)
Minority interests (1,683)
Group’s share of net liabilities (61,652)
Goodwill on acquisition 86,651
Cost of acquisition 24,999
Total cost of acquisition 24,999
There were no other cash flow implications on the acquisition except for the cash and cash equivalents of
Park May and its subsidiaries acquired totalling RM1,934,212.
(ii) PT Indonadi (“PTI”)
On 24 April 2007, the Company acquired 70% equity interest in PTI, a private limited company incorporated
in Indonesia, for a total cash consideration of USD70,000, amounting to approximately RM240,000.
The acquired subsidiary has contributed the following results to the Group:
2007
RM’000
Revenue 12,404
Profit for the year (462)
If the acquisition had occurred on 1 January 2007, the Group’s revenue and profit for the year would have
been RM262,705,812 and RM9,447,548, respectively.

617580-T
14. INVESTMENTS (CONTD.)
(b) Acquisition of Subsidiaries (Contd.)
(ii) PT Indonadi (“PTI”) (Contd.)
The fair values of the assets acquired and liabilities assumed from the acquisition of the subsidiary were as follows:
RM’000
Property, plant and equipment 75

Deferred tax assets 118
Trade and other receivables 14,157
Cash and bank balances 202
Trade and other payables (1,086)
Borrowings (13,659)
Group’s share of net liabilities (193)

Goodwill on acquisition 433
Cost of acquisition 240
Cash outflow arising on acquisition:

Purchase consideration satisfied by cash 240
Cash and cash equivalents of subsidiary acquired (202)
Net cash outflow of the Group 38
There was no acquisition in the financial year ended 31 December 2006.
(iii) Additional investment in Kenderaan Langkasuka Sdn. Bhd. (“Langkasuka”)
During the year, Langkasuka increased its ordinary paid-up share capital from 18,000 to 25,000 of RM10
each. The Company subscribed for an additional 7,000 ordinary shares of RM10 each for a cash consideration
of RM70,000. The Company’s interest in Langkasuka remains at 100% subsequent to the issuance of the
additional ordinary paid-up share capital.
(c) Other Investments
GROUP
2007 2006
RM’000 RM’000
Quoted shares, at cost 187 187

Provision for diminution (78) (78)
Carrying value 109 109
Unquoted shares, at cost 49 49

Provision for diminution (49) (49)
Carrying value - -
Total carrying value 109 109
Market value of quoted shares 129 135

617580-T
15. GOODWILL
GROUP
2007 2006
RM’000 RM’000
At 1 January - -
Acquisition of subsidiaries 87,084 -
At 31 December 87,084 -
Impairment tests for goodwill
Allocation of goodwill
Goodwill has been allocated to the Malaysia bus operation cash-generating unit (“CGU”).
Key assumptions used in value-in-use calculations
The recoverable amount of a CGU is determined based on value-in-use calculations using cash flow projections
based on financial budgets approved by the Board of Directors covering a five-year period.
The following describes each key assumption on which management has based its cash flow projections to
undertake impairment testing of goodwill:
(i) Fuel cost
Fuel cost per litre is projected to increase by 30% in 2008 compared to 2007. This increase is expected to
be compensated by fuel savings of 30% from introduction of Natural Gas Vehicle (“NGV”) buses in 2008. No
further change in fuel cost after 2008 is assumed.
(ii) Growth rate
The average traffic growth is assumed to be at 8% based on the Group’s business plan to introduce new routes
and to increase capacity of existing routes.
(iii) Increase in bus fare
The Group’s proposal to increase bus fares will be approved by the Government by the second half of 2008
resulting in an increase of fares by 30%. There are no further fare increase assumed for subsequent years.
(iv) Discount rate
The discount rate used at 10% is pre-tax and reflect specific risks relating to the business operations.
Sensitivity to changes in assumptions
There are reasonably possible changes in key assumptions which could cause the carrying value of the CGU
to exceed its recoverable amount. The actual recoverable amount for this CGU exceeds it carrying amount by
RM11,487,000. The implication of the key assumptions on the recoverable amount are discussed below:
(i) Fuel cost
Should fuel cost increase be higher than anticipated by 5% (i.e. 35%), the CGU’s value would be reduced to its
carrying amount.
(ii) Growth rate
Should the projected growth rate of 8% be lower by 1% (i.e. 7%), the CGU’s value would be reduced to its
carrying amount.
(iii) Increase in bus fare
Should the anticipated fare increase of 30% be lower by 5% (i.e. 25%), the CGU’s valuewould be reduced to its
carrying amount.
617580-T
16. INVENTORIES
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
At cost:
Diesel 427 480 - -
Lubricant 166 184 - -
Tyres and spare parts 350 499 - -
Tickets stock and others 384 127 18 -
1,327 1,290 18 -
At net realisable value:

Tyres and spare parts 89 43 - -
1,416 1,333 18 -
The cost of inventories recognised as an expense during the financial year amounted to RM108,365,853 (2006:
RM94,413,070).
17. OTHER RECEIVABLES
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Deposits 4,568 3,508 - -

Prepayments 5,138 4,524 14 -
Sundry receivables 12,318 9,986 1,055 -
22,024 18,018 1,069 -
Less: Provision for doubtful debts (546) (264) - -
21,478 17,754 1,069 -
18. TRADE RECEIVABLES
GROUP
2007 2006
RM’000 RM’000
Trade receivables 23,436 2,007

Less: Provision for doubtful debts (6,730) (602)
16,706 1,405
The Group normal trade credit terms ranges from 15 to 30 days (2006: 15 to 30 days). Other credit terms are
assessed and approved on a case-by-case basis.

The Group has a significant concentration of credit risk that may arise from exposures to a single debtor amounting
to RM12,161,000.

617580-T
19. AMOUNT DUE FROM RELATED COMPANIES
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Trade:
Fellow subsidiaries 7,758 9,830 - -
Immediate holding company 702 1,061 - -
Penultimate holding company 828 729 - -
9,288 11,620 - -
Non-trade:
Subsidiaries - - 65,015 650
Immediate holding company 10,341 9,954 - -
Penultimate holding company 8,448 8,948 189 80
42,510 46,453 65,204 730
51,798 58,073 65,204 730
The amounts due from immediate and penultimate holding companies and fellow subsidiaries are unsecured, bear
interest at 4.5% per annum commencing from 1 June 2007 and have no fixed terms of repayment. Prior to 1 June
2007, these amounts were interest-free.
The amounts due from subsidiaries are unsecured, interest-free and have no fixed terms of repayment.
20. CASH AND CASH EQUIVALENTS
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Cash on hand and at banks 1,786 3,809 8 54

Deposits with licensed banks 561 - - -
Cash and bank balances 2,347 3,809 8 54

Less: Fixed deposits pledged with licensed
banks for securing banking facilities (35) - - -
2,312 3,809 8 54
Deposits with licensed banks of the Group include deposits of RM35,000 (2006: Nil) which have been pledged as
security for bank guarantee facilities granted to certain subsidiaries.

617580-T
21. SHARE CAPITAL
Number of Ordinary
Share of RM0.50 Each Amount
2007 2006 2007 2006
’000 ’000 RM’000 RM’000
Authorised:
At 1 January and 31 December 800,000 800,000 400,000 400,000
Issued and fully paid:

At 1 January 252,000 252,000 126,000 126,000
Issue of ordinary shares:
Acquisition of subsidiary (Note 14b(i)) 49,998 - 24,999 -
At 31 December 301,998 252,000 150,999 126,000
During the financial year, pursuant to the Restructuring Scheme of Park May as disclosed in Note 33, the Company
increased its issued and paid-up ordinary share capital from RM126,000,000 to RM150,998,674 by way of issuance
of 49,997,348 ordinary shares of RM0.50 each for the acquisition of the entire issued and paid up ordinary share
capital of Park May in exchange with 74,996,022 ordinary shares of RM1 each in Park May as stated in (Note 14b(i)).
The new ordinary shares issued during the financial year rank pari passu in all respects with the existing ordinary
shares of the Company.
22. CAPITAL RESERVE
Capital reserves relates to share premium in a subsidiary accounted for in consolidation under the merger method
of accounting.
23. BORROWINGS
GROUP
2007 2006
RM’000 RM’000
Short Term Borrowings

Secured
Trust receipts 10,000 10,045
Finance lease payables (Note 24) 48,875 32,648
Term loan 2,644 330
61,519 43,023
Long Term Borrowings

Secured
Finance lease payables (Note 24) 107,075 91,230
Term loan 9,233 454
116,308 91,684
Total Borrowings
Secured
Trust receipts 10,000 10,045
Finance lease payables 155,950 123,878
Term loan 11,877 784
177,827 134,707

617580-T
23. BORROWINGS (CONTD.)
Maturity of Borrowings (excluding finance lease payables)

GROUP
2007 2006
RM’000 RM’000
Within one year 12,644 10,375

More than 1 year and less than 2 years 2,374 359
More than 2 years and less than 5 years 6,859 95
21,877 10,829
The weighted effective interest rate is 7.88% (2006: 7.25%) per annum and is secured by a first legal charge over
certain freehold land and buildings and leasehold land and buildings of the Group (Note 11 and 13).
24. FINANCE LEASE PAYABLES
GROUP
2007 2006
RM’000 RM’000
Minimum lease payments:
Not later than 1 year 59,613 41,299
Later than 1 year and not later than 2 years 42,668 35,003
Later than 2 years and not later than 5 years 62,447 54,254
Later than 5 years 16,828 13,596
181,556 144,152
Less: Future finance charges (25,606) (20,274)
Present value of finance lease liabilities 155,950 123,878
Present value of finance lease liabilities:

Not later than 1 year 48,875 32,648
Later than 1 year and not later than 2 years 35,912 29,454
Later than 2 years and not later than 5 years 54,624 48,434
155,950 123,878
Analysed as:
Due within 12 months (Note 23) 48,875 32,648
Due after 12 months (Note 23) 107,075 91,230
155,950 123,878
The finance lease bore interest during the year of between 1.02% % to 5.50% (2006: 1.02% to 5.50%) per annum.

617580-T
25. PROVISION FOR RETIREMENT BENEFITS
The Group operates an unfunded, defined benefit Retirement Benefit Scheme for eligible employees. The Group’s
obligations under this Scheme are determined based on triennial actuarial valuation using the projected unit credit
method.
GROUP
2007 2006
RM’000 RM’000
The amounts recognised in the balance sheet are determined as follows:
Present value of obligation 15,989 13,650

Fair value of plan assets - -
15,989 13,650
Unrecognised actuarial gain (4,798) (4,028)
Net liability 11,191 9,622
Movement in the net liability were as follows:
At 1 January 9,622 11,280

Additional provision during the year (Note 5) 1,608 537
Acquisition of subsidiary 1,443 -
Payment made during the year (1,482) (2,195)
At 31 December 11,191 9,622
The amounts recognised in the income statement are as follows:
Current service cost 1,475 428

Interest cost 118 97
Actuarial gain 15 12
1,608 537
At 31 December:
Current 484 571
Non current:
Later than 1 year but not later than 2 years 530 791
Later than 2 years but not later than 5 years 699 1,977
10,707 9,051
11,191 9,622
Principal actuarial assumptions used:
2007 2006
% %
Discount rate 6 6
Expected price inflation 5 5

617580-T
26. DEFERRED TAXATION
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
At 1 January 2,336 7,130 - -

Acquisition of subsidiaries (Note 14(b)) 2,659 - - -
Recognised in equity (1,788) - (1,788) -
Recognised in the income statement (Note 9) 768 (4,794) 290 -
At 31 December 3,975 2,336 (1,498) -
Presented after appropriate offsetting as follows:
Deferred tax assets (3,961) (1,862) (1,498) -

Deferred tax liabilities 7,936 4,198 - -
3,975 2,336 (1,498) -
The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are
as follows:
Deferred tax liabilities of the Group:
Accelerated
Capital
Allowances
RM’000
At 1 January 2007 4,198

Recognised in the income statement 219
Acquisition of subsidiaries 3,519
At 31 December 2007 7,936
At 1 January 2006 10,338

Recognised in the income statement (6,140)
Deferred tax assets of the Group:
Unabsorbed
Irredeemable Tax Losses
Convertible and Unutilised Provision for
Secured Capital Retirement
Loan Stocks Allowances Benefits Total
RM’000 RM’000 RM’000 RM’000
At 1 January 2007 - - (1,862) (1,862)

Acquisition of subsidiaries - (487) (373) (860)
Recognised in equity (1,788) - - (1,788)
Recognised in the income statement 284 - 265 549
At 31 December 2007 (1,504) (487) (1,970) (3,961)
At 1 January 2006 - - (3,208) (3,208)

Recognised in the income statement - - 1,346 1,346
At 31 December 2006 - - (1,862) (1,862)

617580-T
26. DEFERRED TAXATION (CONTD.)
Deferred tax liabilities of the Company:

Accelerated
Capital
Allowances
Tax Losses
RM’000
At 1 January 2007 -
At 31 December 2007 6
Deferred tax assets of the Company:

Irredeemable
Convertible
Secured
Loan Stocks
RM’000
At 1 January 2007 -
Recognised in equity (1,788)
At 31 December 2007 (1,504)
Deferred tax assets have not been recognised in respect of the following items:
GROUP
2007 2006
RM’000 RM’000
Unused tax losses - 237
Unabsorbed capital allowances 1,046 216
Other deductible temporary differences 569 -
1,615 453
The unused tax losses and unabsorbed capital allowances of the Group are available indefinitely for offsetting
against future taxable profit of the respective entities within the Group, subject to no substantial change in
shareholdings of those entities under the Income Tax Act, 1967 and guidelines issued by the tax authority.
27. OTHER PAYABLES
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Provision 174 418 26 604

Sundry payables 17,265 8,186 - 69
Accruals 7,509 6,392 602 26
24,948 14,996 628 699
Included in sundry payables is the cost of purchase of buses pending finalisation of lease arrangements amounting
to RM11,536,089 (2006: RM1,749,152).

617580-T
28. TRADE PAYABLES
The normal trade credit terms granted to the Group ranges from 30 to 90 days (2006: 30 to 90 days).
29. AMOUNT DUE TO RELATED COMPANIES
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Trade:
Immediate holding company - 50 - -
2,479 12,822 - -
Non-trade:
Immediate holding company 2,960 712 432 2
Penultimate holding company 1,679 - 527 -
Subsidiaries - - 2,600 -
22,164 5,967 3,559 2
24,643 18,789 3,559 2
The amounts due to immediate and penultimate holding companies, fellow subsidiaries and subsidiaries are
unsecured, interest-free and have no fixed terms of repayment.
30. IRREDEEMABLE CONVERTIBLE SECURED LOAN STOCKS (“ICSLS”)
On 26 June 2007, the Company issued 63,000,000 of 3-year ICSLS 2007/2010 at nominal amount of RM1 each. The
ICSLS was issued to the holder of RM63,000,000 outstanding Commercial Papers/ Medium Term Notes (“CP/MTN”)
of Park May as full and final settlement of the CP/MTN. The issuance of the ICSLS was pursuant to the Restructuring
Scheme of Park May as disclosed in Note 33 to the financial statements.
The terms of the ICSLS are as follows:
(i) Conversion Price
The conversion price is fixed at RM0.625 for each share.
(ii) Conversion Rights
The registered holder of the ICSLS has the right at any time during the conversion period to convert the ICSLS
at the conversion price into new ordinary shares of RM0.50 each in the Company.
(iii) Conversion Period
The ICSLS can be converted into new ordinary shares of RM0.50 each in the Company at any time during the 3 years.
(iv) Redeemability
The ICSLS shall not be redeemable.
(v) Interest
The ICSLS bear interest at the rate of 4% per annum based on the nominal amount of the ICSLS payable
quarterly in arrears.

617580-T
30. IRREDEEMABLE CONVERTIBLE SECURED LOAN STOCKS (“ICSLS”) (CONTD.)
(vi) Security
ICSLS is secured by a second charge on certain freehold and leasehold lands owned by certain subsidiaries
of the Company. A second debenture was created which consists of fixed and floating charge over assets of
certain subsidiaries.
The ICSLS have been split between the liability component and the equity component, representing the fair
value of the conversion option. The amounts recognised in the balance sheet of the Group may be analysed as
follows:
RM’000
Nominal value of ICSLS 63,000

Liability component at date of issuance (6,877)
Deferred tax assets recognised on the liability component 1,788
Equity component 57,911
Liability component:
At date of issue 6,877
Interest expense recognised in income statement 198
Repayment during the year (1,291)
Liability component analysed as:

Current 3,562
Non-current 2,222
5,784
Interest expense on the ICSLS is calculated on the effective yield basis by applying the discount rate of 6% per annum.
31. COMMITMENTS
2007 2006
RM’000 RM’000
Approved but not contracted for:

Buses 51,309 47,940

617580-T
32. RELATED PARTY DISCLOSURES
(a) In addition to the transactions detailed elsewhere in the financial statements, the Group had the following
transactions with related parties during the financial year:
Company Relationship
Park May Berhad (“Park May”) A former related party, in which a director,
Dato’ Mohd Nadzmi bin Mohd Salleh has
interest. During the year, Park May became a
subsidiary
Limora Travel Services Sdn. Bhd. (“LTS”) A subsidiary of penultimate holding company
Nadi Motors Sdn. Bhd. (“Nadi Motors”) A subsidiary of immediate holding company
Badan Bas Sdn. Bhd. (“BBSB”) A subsidiary of penultimate holding company
Usmeta Manufacturing Sdn. Bhd. (“Usmeta”) A subsidiary of penultimate holding company
MHSB Trading Sdn. Bhd. (“MHSB”) A subsidiary of penultimate holding company
Puspamara Sdn. Bhd. (“Puspamara”) A subsidiary of penultimate holding company
The United Transport Co. Sdn.Bhd. (“UTC”) A subsidiary of immediate holding company

Trans Express Courier Sdn. Bhd. (“TEC”) A subsidiary of penultimate holding company
Perkhidmatan Teguh Sdn. Bhd. (“PTSB”) A subsidiary of penultimate holding company
Nadi Insurance Services Sdn. Bhd. (“Nadi Insurance”) A subsidiary of the immediate holding
MHSB Development Sdn. Bhd. (“MDSB”) A subsidiary of penultimate holding company
Simpura Aktif Sdn. Bhd. (“SASB”) A subsidiary of penultimate holding company
Carefree Premium Sdn. Bhd. (“Carefree”) A subsidiary of the immediate holding company
Ilham Tulen Sdn. Bhd. (“Ilham Tulen”) A company in which a director, Dato’ Mohd Nadzmi bin
Mohd Salleh has interest
Western Gallant Sdn. Bhd. (“WGSB”) A subsidiary of penultimate holding company
Kumpulan Kenderaan Malaysia Berhad (“KKMB”) Immediate holding company
Nadicorp Holdings Sdn. Bhd. (“Nadicorp”) Penultimate holding company
Edisi Bimbingan Sdn. Bhd. (“Edisi”) A corporate shareholder

617580-T
32. RELATED PARTY DISCLOSURES (CONTD.)
2007 2006
RM’000 RM’000
Company
Rental of buses to:

- Park May - (314)
- LTS (8) (40)
- Nadi Motors - (1,364)
- Puspamara (72) (72)
Rental of buses from:
- KKMB 550 -
- Park May - 495
- UTC 1,393 804
Bus repair services provided by:
- BBSB 875 5,768
- Usmeta 36 43
- MHSB 1,412 -
- Park May - 794
Bus repair services provided to:
- MHSB (2) (189)
- UTC - (76)
Rental of premises to:
- Park May - (24)
- MHSB (13) (116)
- TEC (9) -
Fuel and lubricant provided by:
- BBSB 9 -
Spare parts provided by:
- BBSB 85 227
- Usmeta 432 47
- MHSB 2,919 8,579
Spare parts provided to MHSB - (45)
Tyres provided to:
- Usmeta (26) -
Tyres provided by:
- Usmeta 8,274 6,463
Security services from PTSB 532 227
Insurance provided by Nadi Insurance 1,454 988
Utilities provided to BBSB - (139)
Sale of land/buildings/buses to:
- MDSB (540) -
- MHSB (8,000) -
- Edisi (7,680)
- Carefree - (7,950)
Purchase of buses from BBSB 8,027 -
Purchase of assets/properties from:
- MHSB 300 -
- UTC - 265
- Ilham Tulen - 726
- WGSB 2,100 461
Workshop/Counter/Terminal maintenance provided by MHSB 8,027 498
Advertisement billed to:
- KKMB - (8,192)
- Carefree (1,777) -
- Edisi (3,216) -
Management fees billed to:
- KKMB - (110)
E-ticketing system maintenance provided by:
- Nadicorp 223 -
- KKMB 352 -
Secretarial fees provided by:
- Nadicorp 84 -
Uniform expenses provided by Puspamara 48 -
Information regarding outstanding balances arising from related party transactions as at 31 December 2007 are
disclosed in Note 19 and 29.
617580-T
32. RELATED PARTY DISCLOSURES (CONTD.)
(b) Compensation of key management personnel
The directors are of the opinion that all the transactions above have been entered into in the normal course of
business and have been established on negotiated terms which the directors are satisfied as not being
detrimental to the Group and Company.
Key management personnel are those persons having authority and responsibility for planning, directing and
controlling the activities of the entity, directly and indirectly, including any director of that entity.
The remuneration of directors and other members of key management during the year was as follows:
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Short-term employee benefits 1,425 655 1,425 655

Post-employment benefits:
- Defined contribution plan 220 100 220 100
1,645 755 1,645 755
Included in the total key management personnel are:
GROUP COMPANY
2007 2006 2007 2006
RM’000 RM’000 RM’000 RM’000
Directors’ remuneration (Note 6) 796 - 796 -
33. SIGNIFICANT EVENTS
Proposed Corporate and Debt Restructuring scheme (“Scheme”) entered between the Company, Park May Berhad
(“Park May”) and Kumpulan Kenderaan Malaysia Berhad (“KKMB’)
On 11 March 2004, the Company entered into a definitive agreement (“Principal Agreement”) on a proposed
corporate and debt restructuring scheme between Park May and KKMB.
Under the Scheme, the Company proposed to acquire eight (8) subsidiaries of KKMB for a total purchase
consideration of RM125 million by the issuance of 250 million new ordinary shares of RM0.50 each in the Company.
(“the Internal Group Restructuring”). The Internal Group Restructuring was completed in 2005.
In addition, the Company proposed the issuance of 49.998 million new ordinary shares at RM0.50 each to the
existing shareholders of Park May on the basis of two (2) new ordinary shares in the Company for every three (3)
existing ordinary shares of Park May at RM1.00 each prior to the cancellation of ordinary shares in Park May (“the
Proposed Share Exchange”).
Conditional upon the Proposed Share Exchange Event, Park May proposed to cancel the entire enlarged issued and
paid-up capital of Park May, comprising 74.996 million ordinary shares of RM1 each, and to issue 74.996 million new
ordinary shares at RM1.00 each to the Company, that would result in Park May becoming a wholly-owned subsidiary
of the Company (“Proposed Shares Cancellation”).
Conditional upon the Proposed Shares Cancellation, Park May proposed to transfer Park May’s listing status to the
Company and the listing of the entire issued and paid-up share capital of the Company on the Main Board of the
Bursa Malaysia.
The Company had also entered into a Debt Restructuring Agreement with Park May, Affin Discount Berhad and
Malaysian Trustees Berhad for the carrying out of the proposed Debt Restructuring, and the issuance of Irredeemable
Convertible Secured Loan Stocks (“ICSLS”) at nominal value of RM63 million bearing a coupon rate of four (4) per
cent per annum to Affin Discount Berhad, in accordance with the terms and conditions of the debt restructuring
agreement. The additional shares pursuant to the Share Sale Agreement, and the ICSLS had not been issued as at
the date of this report, pending fulfilment of certain condition.
617580-T
33. SIGNIFICANT EVENTS (CONTD.)
The proposed corporate and debt restructuring scheme was approved by the Securities Commission on 27 July 2004.
Park May has submitted an application to the SC for the extension of time from 27 July 2005 until 26 June 2007 for
Park May to complete the Scheme via letter dated 20 December 2006.
On 6 June 2007, the Company acquired the entire issued and paid up share capital of Park May comprising
74,996,022 ordinary shares of RM1.00 each for a total purchase consideration of RM24,998,674 satisfied by the
issuance of 49,997,348 new ordinary shares in the Company at par value of RM0.50 per ordinary share.
On 15 June 2007, the Company was admitted to the Official List of the Main Board of Bursa Malaysia Securities
Berhad in place of Park May.
On 26 June 2007, the Company announced that it has fully completed the Scheme upon the issuance of the ICSLS.
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 the development of the Group’s businesses whilst managing its interest rate, liquidity and credit risks. The
Group operates within clearly defined guidelines, and the policy is to not engage in speculative transactions.
(b) Interest Rate Risk
The Group’s primary interest rate risk relates to interest-bearing borrowings.
The Group manages its interest rate exposure by committing into fixed rate borrowings to mitigate the potential
fluctuation in borrowing costs, and review these debt portfolio on a periodic basis.
The information on maturity dates and effective rates of financial assets and liabilities are disclosed in the
respective notes.
(c) Liquidity Risk
The Group actively manages its operating cash flows and the availability of funding so as to ensure that all
repayment and funding needs are met. The Group relies on its related companies’ funding to meet its
working capital requirements. The Group raises long term borrowings from financial institutions to finance its
capital expenditure.
(d) Credit Risk
The Group does not have any significant exposure to any individual customer or counterparty nor does it have
any major concentration of credit risk related to any financial instrument except for as disclosed in Note 18.

617580-T
34. FINANCIAL INSTRUMENTS (CONTD.)
(e) Fair Values
The aggregate fair values of financial asset and financial liabilities carried on the balance sheet of the Group as
at the end of the financial year are presented as follows:
GROUP
Carrying
Note Amount Fair Value
RM’000 RM’000
Financial asset/(liabilities)
At 31 December 2007:
Quoted investments 14(c) 109 129
Term loans 23 (11,877) (11,709)
ICSLS 30 (5,784) (5,784)
Finance lease payables 24 (155,950) (105,305)
At 31 December 2006:
Quoted investments 14(c) 109 135
Term loans 23 (784) (758)
Finance lease payables 24 (123,878) (122,849)
The fair values have been determined by discounting the relevant cash flows using the effective interest rates
as at the balance sheet date.

The carrying amounts of the cash and cash equivalents, amounts due by or to related companies, receivables
and payables approximate their fair values due to relatively short term nature of these financial instruments.
35. SEGMENTAL REPORTING
The Group is principally engaged in the public bus transport business predominantly in Malaysia. No segmental
information is provided on business and geographical segments basis under the requirement of FRS 114.
The directors are of the opinion that all inter-segments transactions have been entered into in the normal course of
business and have been established on terms and conditions that are not materially different from those obtainable
in transactions with unrelated parties.
36. SUBSEQUENT EVENT
On 9 April 2008, the Company announced that it had entered into a Share Purchase Agreement (“SPA”) for the
acquisition of 150,002 ordinary shares of RM1 representing the entire issued and paid-up ordinary share capital of
Mobile Advertising Serv. For Transport Ops. Sdn Bhd. (“Mastro”) from its shareholders whom are also the
Company’s directors, Dato’ Mohd Nadzmi bin Mohd Salleh and Tengku Mohd Hasmadi bin Tengku Hashim for a
total cash consideration of RM1. The proposed acquisition is expected to be completed within one month from the
date of SPA.

617580-T
37. CONTINGENT LIABILITY
On 2 June 2003, Siana Corporation Sdn Bhd (“Siana”), a subsidiary of the Company, made claims against Exing
Sdn. Bhd. (“Exing”) in the Kuala Lumpur High Court, RM4,954,595 for breach of service contract dated 1 May 2002
between Siana and Exing.
Exing served its Statement of Defence and counterclaimed of RM7,311,057 against Siana on 22 September 2003.
However, by a court order dated 29 September 2003, Exing was wound up by a third party. Consequently, on 27
January 2004, Siana withdrew its claim against Exing and has filed the Proof of Debt with Official Receiver on 17
January 2005.
On 29 May 2007, Siana was served with a Notice of Demand pursuant to Section 218 of the Companies Act by
Exing. Subsequent to Siana’s application for an injunction to stop Exing from instituting winding up proceeding
against Siana, Exing had withdrawn their Section 218 Notice on 4th December 2007.
Siana has filed its Statement of Defence and Exing (in liquidation) and/or Exing’s lawyer have taken no further steps
to set the matter down for trial and no further date has been fixed by the court.
Siana has been advised by its solicitors that Exing’s claim is subject to proof and may ultimately be proven to be
unsubstantiated with regards to the sum claimed. Further, Siana has been also advised by its solicitors that it has a
sound defence to Exing’s claim.
38. SUBSIDIARIES AND ACTIVITIES
Details of the subsidiaries are as follows:
Country of Equity Held (%)

Name of Subsidiaries Incorporation 2007 2006 Principal Activities
Syarikat Kenderaan Melayu Malaysia 100 100 Public Transportation

Kelantan Berhad (“SKMK”) # services
Syarikat Tanjung Keramat Malaysia 100 100 Public Transportation

Temerloh Omnibus Berhad (“TKT”) services
Kenderaan Langkasuka Malaysia 100 100 Public Transportation

Sdn. Bhd. (“Langkasuka”) # services
Kenderaan Klang Banting Berhad (“KKB”) Malaysia 100 100 Public Transportation
services
Kenderaan Labu Sendayan Sdn. Bhd. (“KLS”) Malaysia 100 100 Public Transportation
services
Starise Sdn. Bhd. (“Starise”) Malaysia 100 100 Public Transportation

services
Syarikat Rembau Tampin Sdn. Bhd. (“SRT”) Malaysia 100 100 Public Transportation
services
Transnasional Express Sdn. Bhd. (“TESB”) Malaysia 100 100 Public Transportation
services
Park May Berhad (“Park May”) Malaysia 100 - Investment holdings
PT Indonadi # Indonesia 70 - Trading of vehicles

617580-T
38. SUBSIDIARIES AND ACTIVITIES (CONTD.)

Subsidiaries of Park May
The Kuala Lumpur, Klang and Malaysia 100 - Public transportation

Port Sweettenham Omnibus services and
Company Bhd. (“KLK”) investment holdings
Landvest Sdn. Bhd. Malaysia 100 - Ceased operations
Yee Yow Coachbuilders Sdn. Bhd. Malaysia 100 - Ceased operations
Jurubas Sdn. Bhd. Malaysia 100 - Ceased operations
Siana Corporation Sdn. Bhd. Malaysia 100 - Ceased operations
Tulus Hebat Sdn. Bhd. (“THSB”) Malaysia 100 - Investment holdings
Plusliner Travel & Tours Sdn. Bhd. Malaysia 100 - Domestic travel and
tour
Nikra Sdn. Bhd. (“NSB”) Malaysia 95 - Investment holdings
Min Sen Holdings Sdn. Bhd. (“MSHSB”) Malaysia 67 - Management, property

holding and
investment holding
Ulung Perkasa Sdn. Bhd. (“UPSB”) Malaysia 100 - Investment holdings
Plusliner Sdn. Bhd. (“PLSB”) Malaysia 100 - Public transportation

services and
investment holdings
City Profile Sdn. Bhd. Malaysia 100 - Ceased operations
Jelebu Holdings Sdn. Bhd. (“JHSB”) Malaysia 83 - Investment holdings
Subsidiaries of KLK
The Kuala Selangor Omnibus Company Bhd. Malaysia 90 - Public transportation

services
Tg. Karang Transportation Sdn. Bhd. Malaysia 70 - Public transportation

services
Subsidiaries of THSB
Cityliner Sdn. Bhd. Malaysia 100 - Public transportation

services
Len Chee Omnibus Company Sdn. Bhd. Malaysia 85 - Public transportation

services
Forefront Achievement Sdn. Bhd. Malaysia 100 - Investment holdings

617580-T
38. SUBSIDIARIES AND ACTIVITIES (CONTD.)

Subsidiary of NSB
Central Province Wellesley Malaysia 95 - Public transportation

Transport Company Sdn. Bhd. services
Subsidiaries of MSHSB
The Min Sen Omnibus Malaysia 67 - Public transportation

Company Sdn. Bhd. services
Sam Lian Enterprise Sdn. Bhd. Malaysia 67 - Property holding
Sam Lian Omnibus Company Sdn. Bhd. Malaysia 42 - Public transportation

services
Subsidiaries of UPSB
Leng Huat Omnibus Company Sdn. Bhd. Malaysia 97 - Inactive
Kuala Terengganu Kuantan Malaysia 81 - Inactive

Express Company Sdn. Bhd.
Syarikat Express Kuala Terengganu Malaysia 100 - Inactive

- Kuala Lumpur Sdn. Bhd.
The Kuantan - Kuala Lumpur Express Malaysia 95 - Public transportation

Omnibus Company Sdn. Bhd. services
Subsidiaries of PLSB
Raya Ekspress Sdn. Bhd. Malaysia 100 - Inactive
Pengangkutan Sri (Perak) Bhd. Malaysia 91 - Public transportation

services
Syarikat Ebban Sdn. Bhd. Malaysia 62 - Public transportation

services
Bacius Pte. Ltd. Singapore 100 - Ticketing agent
Subsidiaries of JHSB
Kenderaan Bas Port Dickson Sdn. Bhd. Malaysia 93 - Public transportation

services
Kenderaan Bas Linggi Sdn. Bhd. Malaysia 73 - Public transportation

services
Kenderaan Bas Jelebu Sdn. Bhd. Malaysia 83 - Public transportation

services
Kenderaan Bas Seremban Sdn. Bhd. Malaysia 57 - Public transportation

services
# Audited by firms other than Ernst & Young.

617580-T
ANALYSIS OF SHAREHOLDINGS
As at 12 May 2008
Authorised Capital : RM400,000,000
Issued and Fully Paid : RM301,997,348
Class of Shares : Ordinary shares of RM0.50
No. of Shareholders : 4,515
Voting Rights : 1 vote per ordinary share
DISTRIBUTION OF SHAREHOLDERS
% of Issued Share
Size of Holdings No. of Shareholders % of Shareholders No. of Shares
Capital
Less than 100 137 3.03 5,436 0.00
100 – 1,000 1,401 31.03 1,009,166 0.33
1,001 – 10,000 2,238 49.57 9,158,815 3.04
10,001 – 100,000 644 14.26 19,387,851 6.42
100,001 to less than
5% of issued shares 92 2.04 83,382,592 27.61
5% and above of
issued shares 3 0.07 189,053,48 62.60
Total 4,515 100.00 301,997,348 100.00
SUBSTANTIAL SHAREHOLDERS
No. Name of Substantial Shareholders No. of Shares %

1. Kumpulan Kenderaan Malaysia Berhad 186,828,041 61.86
- 133,628,041 shares held through own name
- 9,200,000 shares held through own name
- 30,000,000 shares held through OSK Nominees (Tempatan) Sdn Berhad
- 14,000,000 shares held though OSK Nominees (Tempatan) Sdn Berhad
2. Lengkap Suci Sdn Bhd 24,425,447 8.42
DIRECTORS’ SHAREHOLDINGS
No. Name of Directors Direct Interest %

1. YBhg Dato’ Mohd Nadzmi Bin Mohd Salleh 3,906,600 1.29
- 3,800,000 shares held though own name
- 106,600 shares held through HLG Nominees (Tempatan) Sdn Berhad
2. YBhg Datuk Sulaiman Bin Daud 350,000 0.12
3. YM Tengku Mohd Hasmadi Bin Tengku Hashim 350,000 0.12
- 350,000 shares held through OSK Nominees (Tempatan) Sdn Berhad
4. Encik Zainal Abidin Bin Jamal 350,000 0.12
5. Encik Muhammad Adib Bin Ariffin 185,100 -
- 185,100 shares held through BHLB Trustee Berhad

617580-T
LIST OF 30 LARGEST SHAREHOLDERS
No. Name of Shareholders No. of Shares %

2. OSK Nominees (Tempatan) Sdn Berhad 30,000,000 9.93
OSK Capital Sdn Bhd for Kumpulan Kenderaan Malaysia Berhad
3. Lengkap Suci Sdn Bhd 25,425,447 8.42
OSK Capital Sdn Bhd for Kumpulan Kenderaan Malaysia Berhad
5. UEM Group Berhad 12,425,237 4.11
6. Ibrahim Bin Ali 12,257,200 4.06
OSK Capital Sdn Bhd for Edisi Bimbingan Sdn Bhd
9. Dato’ Mohd Nadzmi Bin Mohd Salleh 3,800,000 1.26
10. Yee Hoong Hing 983,893 0.33
11. Amsec Nominees (Tempatan) Sdn Bhd 970,723 0.32
Exempt an AmTrustee Berhad
12. Tan Kok Keng 958,200 0.32
13. Scomi Coach Sdn Bhd 943,649 0.31
14. Tan Eng Boon 889,800 0.29
15. Denso (Malaysia) Sdn Bhd 885,913 0.29
16. KL Star Sdn Bhd 856,500 0.28
17. Yeoh Kean Hua 686,667 0.23
18. Citigroup Nominees (Tempatan) Sdn Bhd 536,000 0.18
Pledged securities account for Hi Geok Kim @ Hi Peh Lang
19. RHB Nominees (Asing) Sdn Bhd 518,000 0.17
UOB Kay Hian Private Limited for Phay Koon Seow
20. Cimsec Nominees (Tempatan) Sdn Bhd 516,000 0.17
CIMB Bank for Mohammed Amin Bin Mahmud
21. Yio Kim Sim 513,500 0.17
22. Che Mokhtar Bin Che Ali 500,000 0.17
23. Chock Kok Huat 470,200 0.16
24. Tan Siew Harn 460,000 0.15
25. Sumardi Bin Ardul 361,100 0.12
26. Datuk Sulaiman Bin Daud 350,000 0.12
27. Zainal Abidin Bin Jamal 350,000 0.12
28. OSK Nominees (Tempatan) Sdn Berhad 350,000 0.12
OSK Capital Sdn Bhd for Tengku Mohd Hasmadi Bin Tengku Hashim
29. Teng Eng Huat 347,000 0.11
30. Ke-Zan Nominees (Tempatan) Sdn Bhd 338,500 0.11
Kim Eng Securities Pte Ltd for Law Ah Moy
TOTAL 260,521,570 86.27

LIST OF PROPERTIES
No. Postal Address Registered Approximate Tenure/Date Description/ Estimated Land Audited Date of
Owner Age of of Expiry of Existing Use Area/Built-Up Area NBV as at Acquisition/
Building Lease 31.12.07 Valuation
(RM’000)
1. No. 83D, 2nd Floor, Hock Lee Mansion, KNKL >30 Freehold Flat used as 48 (build-up area) Nil 21.09.2006
Jalan Union, 51000 Sentul, strata staff quarters
Kuala Lumpur
2. No. 85D, 2nd Floor, Hock Lee Mansion, Syarikat >30 Freehold Flat used as 48 (build-up area) 2.7 21.09.2006
Jalan Union, 51000 Sentul, Ekspress Kuala strata staff quarters
Kuala Lumpur Terengganu KL
Sdn Bhd
617580-T
3. Lot 1512, Selangor Mansion, 5th Floor, KNKL >30 Freehold Flat rented out 48 (build-up area) Nil 27.10.2006
Jalan Masjid India, Kuala Lumpur strata to third party
4. Lot 3988-3989, Oakland Industrial Park, Jelebu 12 Freehold Office building 7,151 (land area) 1,375.2 21.09.2006
Seremban, Negeri Sembilan with depot 1,186 (built-up area)
5. Lot 104-108, 407-408, Jalan Kg Gajah, CPW 12 Freehold Office building, 5,547 (land area) 1,665.4 19.10.2006
12200 Butterworth, Pulau Pinang bus depot and 1,695 (built-up area)
workshop
6. Lot No. 462 & 1004, No. 3967, Jalan CPW 12 Freehold Office and bus 2,452 (land area) 2,795.2 19.10.2006
Bagan Luar, Butterworth, Pulau Pinang depot 1,032 (built-up area)
7. Lot No. 2729 & 2730 No. 354, Jalan SLE 15 Freehold Bus workshop 323 (land area) 97.3 27.10.2006
Ria, 34200 Parit Buntar, Perak cum depot 330 (built-up area)
8. Lot 9613, Jalan Tronoh, Kg Pancho PSP 13 Freehold Bus workshop 11,509 (land area) 60.0 20.10.2006
Bota Kanan, Perak cum depot 305 (built-up area)
9. G73, Pine Resort Condominium, 49000 Park May 15 99-year Holiday 129 (built-up area) 245.3 22.09.2006
Bukit Fraser, Perak leasehold apartment
expiring on
23.05.2082
10. Lot No. PT 6301, Lot 34.Semambu Leng Huat 15 66-year Office building 8,094 (land area) 475.4 23.09.2006
Industrial Estate, 25350 Kuantan, leasehold with depot 1,755 (built-up area)
Pahang expiring on
24.08.2041
11. Lot 1802, No. 46, Ruby Garden, 27000 Leng Huat 11 Freehold A single-storey 207 (land area) Nil 19.09.2006
Jerantut, Pahang terrace house 102 (built-up area)
12. Lot No. 77675, Taman Nusa Perintis, Tulus Hebat 8 Freehold 3-storey 1,540 (land area) 455.3 27.09.2006
1 HS (D) 258267 Bandar Nusajaya, shopoffice 429 (built-up area)
ANNUAL REPORT 2007

Mukim of Pulai, Johor Bahru, Johor
87
LIST OF PROPERTIES
88
No. Postal Address Registered Approximate Tenure/Date Description/ Estimated Land Audited NBV Date of
Owner Age of of Expiry of Existing Use Area/Built-Up Area as at 31.12.07 Acquisition/
Building Lease (RM’000) Valuation
13. Lot No. 77676, Taman Nusa Perintis, Plusliner 8 Freehold 3-storey shop 1,540 (land area) 594.9 27.09.2006
1 HS (D) 258267 Bandar Nusajaya, office 429 (built-up area)
Mukim of Pulai, Johor Bahru, Johor
14. Lot 138, Jalan Bunga Pekan, 42700 Klang Banting 19 60-year Bus station 4,532 (land area) 384.1 11.12.1996
ANNUAL REPORT 2007

Banting, Selangor leasehold office 862 (built-ip area)
expiring on
31.10.2049
15. No. 1-238, Tingkat 1 & 2, Jalan Sungai Klang Banting 4 Freehold 3-storey shop 158 (build-up area) 453.2 01.05.2002
Bertek, 41100 Klang, Selangor office
16. No. 14, Jalan Semantan 4, Lurah Keramat 15 99-year 3-storey shop 133 (land area) 151.3 05.07.1990
Semantan, 28000 Temerloh, Pahang leasehold office 114 (built-up area)
expiring on
30.01.2090
17. Lot 3, Kawasan Perindustrian, Keramat 30 60-year Bus depot 4,047 (land area) 56.7 27.07.1975
Songsang, Jalan Jerantut, 28000 leasehold 685 (built-up area)
Temerloh, Pahang expiring on
27.04.2043
18. PT 83, Jalan Dato Sedia Raja, 71300 Rembau 21 99-year Bus depot 3,440 (land area) 1,380.6 01.01.1989
Rembau, Negeri Sembilan Tampin leasehold 616 (built-up area)
expiring on
19.01.2081
19. Unit No. 139, Lot 33, Ground Floor, Langkasuka 3 99-year Shop unit 98 (built-up area) 160.2 01.08.2002
Kompleks Alor Setar, Jalan Kancut, leasehold
05100 Alor Setar, Kedah expiring on
617580-T
26.08.2083
20. Unit No. 143-C, Lot 37, Tingkat Bawah, Langkasuka 3 99-year Shop unit 65 (built-up area) 136.7 01.08.2002
Kompleks Alor Setar, Ja;an Kancut, leasehold
05100 Alor Setar, Kedah expiring on
26.08.2083
21. No. 18, Jalan Gagah, Kawasan Transnasional 2 60-year Bus depot 6,273 (land area) 1,651.0 01.05.2003
Perindustrian Larkin, 80350 Ulu Tiram, leasehold 1,754 (built-up area)
Johor expiring on
8.09.2032
22. Jalan Raja Perempuan Zainab II, 16150 SKMK 3 Freehold Office and bus 38,178 (land area) 1,248.7 01.01.1982
Kota Bharu, Kelantan depot 5,708 (built-up area)
LIST OF PROPERTIES
No. Postal Address Registered Approximate Tenure/Date Description/ Estimated Land Audited Date of
Owner Age of of Expiry of Existing Use Area/Built-Up Area NBV as at Acquisition/
Building Lease 31.12.07 Valuation
(RM’000)
23. Lot 49, Jalan Pasir Puteh, 15200 Kota SKMK 3 Freehold Bus station 5,192 (land area) 661.0 01.01.1982
Bharu, Kelantan and workshop 612 (built-up area)
24. Lot 43, Jalan Pasir Puteh, 15200 Kota SKMK 12 Freehold Vacant 3,068 (land area) 839.0 01.01.1982
Bharu, Kelantan
25. No. 2832-A, Jalan Pendek, 15000 Kota SKMK 21 99-year Bus station 1,248 (land area) 1,335.2 01.01.1982
Bharu, Kelantan leasehold 618 (built-up area)
expiring on
31.10.2050
617580-T
26. Lot 177, Stesyen Bas S.K.M.K., 16200 SKMK 22 99-year Bus station 1,770 (land area) 164.8 01.01.2003
Tumpat, Kelantan leasehold 574 (built-up area)
expiring on
1.02.2071
27. 159A, Jalan Limbongan, 16800 Pasir SKMK 13 Freehold Vacant 457 (land area) 1.5 01.01.1952
Puteh, Kelantan
28. 276C, Jalan Kota Bharu, 16800 Pasir SKMK 39 Freehold Bus depot 4,365 (land area) 288.0 01.01.1992
Puteh, Kelantan 269 (built-up area)
29. 9, Kawasan Perusahaan, Batu 4, Tanah PKINK (Refer to 20 66-year Bus depot 36,433 (land area) 601.9 01.01.1985
Merah, Kelantan Section 3(v) of leasehold 486 (built-up area)
this Prospectus) expiring on
6.11.2047
30. 6, Stesen Bas Tanah Merah, Kelantan SKMK 17 Freehold Bus station 1,886 (land area) 398.1 01.01.1988
560 (built-up area)
31. Stesyen Bas SKMK Machang, 18500 SKMK 23 99-year Bus station 1,485 (land area) 206.8 01.01.1982
Machang, Kelantan leasehold 748 ( built-up area)
expiring on
14.05.2059
32. lot 3, Jalan Pasir Puteh, Bandar SKMK 21 99-year Bus station 2,736 (land area) 128.9 01.01.1985
Machang, Kelantan leasehold 148 ( built-up area)
expiring on
13.11.2080
33. 2394, Jalan Ah Sang, 18000 Kuala SKMK 19 33-year Bus station 3,011 (land area) 131.3 01.01.1987
Krai, Kelantan leasehold and depot 421 (built-up area)
expiring on
ANNUAL REPORT 2007

27.07.2017
89
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PROXY FORM
KONSORTIUM TRANSNASIONAL BERHAD (617580-T)
NO. OF ORDINARY
SHARES HELD

I/We
of
being member/members of KONSORTIUM TRANSNASIONAL BERHAD, hereby appoint
of

or failing him/her, the Chairman of the Meeting, as my/our proxy to vote for me/us and on my/our behalf at
the Fourth Annual General Meeting of the Company to be held at the Ball Room, Level 1, Kuala Lumpur
International Hotel, Jalan Raja Muda Abd Aziz, 50738 Kuala Lumpur on Tuesday 24th June 2008 at 10.00 a.m.
and at any adjournment thereof, in the manner indicated below:-
RESOLUTION FOR AGAINST

1 Adoption of Accounts and Reports for the year ended 31
December 2007
2 Re-election of Directors under Article 128:
YM Tengku Mohd Hasmadi Tengku Hashim
3 Approval of Directors Fees
4 Re-appointment of Messrs. Ernst & Young as Auditors of the
Company
5 Special Business
Proposed ratification of recurrent related party transactions of

a revenue or trading nature
6 Special Business
Proposed general mandate for recurrent related party

transactions of a revenue or trading nature
7 Special Business
General authority for the Directors to issue shares
(Please indicate with an “X” in the spaces provided how you wish your vote to be cast. If you do not do so, the
proxy will vote or abstain from voting at his/her discretion.)
Signed this day of 2008

Signature / Seal
NOTE:
A member of the Company entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in his stead. A proxy
may but need not be a member of the Company.
The proxy form must be deposited at the Company’s registered office at No. 38, Jalan Chow Kit, 50350 Kuala Lumpur not less than forty-
eight (48) hours before the time fixed for holding the meeting and at any adjournment thereof.
Where a member of the Company appoints two (2) proxies, the appointment shall be invalid unless the member specifies the proportion
of his shareholding to be represented by each proxy is specified.
The Proxy Form must be signed by the appointer or his attorney duly authorized in writing or if the appointer is a corporation, either under
its common seal or the hand of its attorney duly authorized.
fold here
affix stamp here
Company Secretary
KONSORTIUM TRANSNASIONAL BERHAD (617580-T)
No 38, Jalan Chow Kit,
50350 Kuala Lumpur
fold here

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ANNUAL

5 Statement Accompanying Notice of Annual General Meeting

11-13 Directors’ Profiles

14-16 Chairman’s Statement

17-21 Statement on Corporate Governance

22 Statement of Directors’ Responsibility

23-24 Audit Committee Report TABLE OF

33-84 Financial Statements

85-86 Analysis of Shareholding

87-89 List of Properties

ANNUAL REPORT 2007 1

To consider and if thought fit, pass the following Ordinary Resolutions:-

“THAT pursuant to paragraph 10.09 of the Listing Requirements of

2 ANNUAL REPORT 2007

6. Proposed General Mandate for Recurrent Related Party Resolution 6

“THAT pursuant to paragraph 10.09 of the Listing Requirements of

(c) revoked or varies by resolution passed by the shareholders of the

whichever is the earlier;

By Order of the Board

TIFLA HAIRI TAIB (LS 0008017)

Explanatory Notes on Special Business

4 ANNUAL REPORT 2007

2. Details of Attendance of Directors at Board Meeting

No. Directors Attendance

3. Date, time and place of Annual General Meeting

ANNUAL REPORT 2007 5

Name Nationality Status

YM Tengku Mohd Hasmadi Tengku Hashim Malaysian Executive Director

6 ANNUAL REPORT 2007

REGISTERED OFFICE Mr. Kong Hon Khien

Malayan Banking Berhad Encik Basri Baharom

Encik Alaudhin Assanar

ANNUAL REPORT 2007 7

PLUSLINER TRAVEL TOURS SDN BHD - 100% (T)

SIANA CORPORATION SDN BHD - 100% (D)

JURUBAS SDN BHD - 100% (D)

LANDVEST SDN BHD - 100% (P)

YEE YOW COACH BUILDERS SDN BHD - 100% (D)

TULUS HEBAT SDN BHD - 100% (H)

CITY PROFILE SDN BHD - 100% (D)

NIKRA SDN BHD - 95% (H)

THE KL KLANG & PORT SWETTENHAM

MIN SENG HOLDINGS - 67% (H)

JELEBU HOLDINGS SDN BHD - 83.2% (H)

ULUNG PERKASA SDN BHD - 100% (H)

TRANSNASIONAL EXPRESS SDN BHD - 100% (E)

KENDERAAN KLANG BANTING BHD - 100% (S)

KENDERAAN LABU SENDAYAN SDN BHD - 100% (E)

KENDERAAN LANGKASUKA SDN BHD - 100% (S)

SYARIKAT REMBAU TAMPIN SDN BHD - 100% (E/S)

STARISE SDN BHD - 100% (S)

TANJONG KERAMAT TEMERLOH UTARA OMN BHD - 100% (E/S)

SYARIKAT KENDERAAN MELAYU KELANTAN BHD - 100% (E/S)

8 ANNUAL REPORT 2007

SYARIKAT EBBAN SDN BHD - 61.6% (E)

BACIUS PTE LTD - 100% (E)

LEN CHEE OMN COMPANY

CENTRAL PROVINCE TG KARANG TRANSPORTATION