annual report 2004 - tstore.com.myannual report 2004 the store corporation berhad annual report 2004...

81
THE STORE CORPORATION BERHAD ( INCORPORATED IN MALAYSIA ) 252670-P ANNUAL REPORT 2004 THE STORE CORPORATION BERHAD ANNUAL REPORT 2004 LARGEST AND OLDEST EXISTING SUPERMARKET CUM DEPARTMENTAL CHAIN IN MALAYSIA AS CERTIFIED BY THE MALAYSIA BOOK OF RECORDS YEAR 2001 THIS RECOGNITION HAS BEEN EXTENDED TO YEAR 2005 & AWARDED SUPERBRANDS STATUS 2003/2004

Upload: others

Post on 10-Jan-2020

9 views

Category:

Documents


0 download

TRANSCRIPT

THE STORE CORPORATION BERHAD( INCORPORATED IN MALAYSIA )

252670-P

A N N U A L R E P O R T 2 0 0 4

THE STORE CORPORATION BERHAD

AN

NU

AL

RE

PO

RT

2

00

4LARGEST AND OLDEST EXISTING SUPERMARKET CUM DEPARTMENTAL CHAIN IN MALAYSIA AS CERTIFIED BY THE MALAYSIA BOOK OF RECORDS YEAR 2001

THIS RECOGNITION HAS BEEN EXTENDED TO YEAR 2005

&AWARDED SUPERBRANDS STATUS 2003/2004

Notice of Annual General Meeting and Notice of Closure of Books

Statement Accompanying Notice of Annual General Meeting

Corporate Information

Corporate Structure

Location of Outlets

Chairman's Statement

Directors’ Profile

Statement of Corporate Governance

Internal Control Statement

Audit Committee Report

Financial Statements

List of Properties

Analysis of Shareholdings

List of Thirty Largest Shareholders

Proxy Form

6

9

10

11

12

13

17

22

29

31

35

74

76

77

CONTENTS

Another Excellent Year …Consistency in excellence has always been the corporate philosophy of The Store. The past year proved to be no exception.

With a wide variety of exciting and value-for-money sales and promotional activities, The Store’s customers were continuouslyrewarded throughout the year. Moreover, many needy groups in Malaysia also benefited from the charity campaigns organised by The Store. The following details some of the highlights of the past year’s events and activities:

THE STORE JOYFUL FESTIVE DOUBLE REWARD1 N O V E M B E R 2 0 0 3 – 8 F E B R U A R Y 2 0 0 4

The Store Joyful Festive Double Reward for Chinese New Year

celebration rewarded customers with The Store Gift Vouchers worth

RM150,000. At the end of the campaign, the ‘Festive Grand

Reward’ of Grand Prize – Perdana V6, First Prize – Kembara DVVT,

Second Prize – Kenari and 10 units of Third Prizes – Kriss 1

motorcycles were given away to 13 lucky winners!

2 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Arrival of Y.B. Dato’ Ho ChengWang, Ahli Majlis MesyuaratKerajaan Negeri (Exco)Merangkap PengerusiJawatankuasa Kesihatan, Sains& Teknologi Dan Alam SekitarNegeri Perak Darul Ridzuan atThe Store, Taiping, Wisma DatoToh Eng Hoe.

Presentation of souvenir to Y.B. Dato’ Ho Cheng Wang by

Dato’ (Dr.) Tang Yeam Soon, Group Managing Director.

Welcoming ceremony ofKompang and Lion Danceperformance.

Official launching of TheStore Card Silver & GoldMembership RewardsProgramme at The Store,Ipoh, Jalan Kampar byY.B. Dato’ Donald LimSiang Chai, DeputyInformation Minister.

DEVELOPMENTLOCAL ENTREPRENEURS’

GROWING WITH

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

3

3 J U N E 2 0 0 4 – 4 J U L Y 2 0 0 4

‘PROJEK PEMASARAN PRODUK INDUSTRI KECIL & SEDERHANA USAHAWAN BUMIPUTERA’

Y.B. Datuk Haji Mohd. Shafie Bin Haji Apdal, Minister ofDomestic Trade & Consumer Affairs making his speech.

THE STORE GROUP

Being a successful local retailer, The Store Group strongly supports the development oflocal entrepreneurs especially in the retail industry. In mid-2004, The Store Group launchedthe ‘Projek Pemasaran Produk Industri Kecil & Sederhana (IKS) Usahawan Bumiputera’ at allits 38 outlets nationwide on 3rd June 2004 in support of the government’s efforts in expeditingthe growth of small & medium industry in Malaysia. A total of 41 IKS entrepreneurs wereinvolved in this project with a showcase of 316 products.

Working closely with the Ministry of Domestic Trade & Consumer Affairs and through itsextensive network, The Store Group played an important role in elevating the competitivelevel of local small & medium industry to state as well as national level.

Officially launching of the ‘Projek Pemasaran Produk Industri Kecil & Sederhana Usahawan Bumiputera’ at The Store, Plaza Alam Sentral, Shah Alam by Y.B. Datuk Haji Mohd. Shafie Bin Haji Apdal, Minister of Domestic Trade & Consumer Affairs.

The Store Group Chairman, Encik Mohd.Kamal Bilal (left), Y.B. Datuk Haji Mohd.Shafie Bin Haji Apdal, The Store Group

Managing Director, Dato’ (Dr.) Tang YeamSoon (second from right), KPDN Deputy

Minister, Dato’ Veerasingam A/L Suppiah(third from right) and KPDN Officers taking

a group photo with IKS entrepreneurs.

One of the IKS entrepreneurs explainingthe functions of a product to Y.B. Datuk

Haji Mohd. Shafie Bin Haji Apdal.

2 9 M A Y 2 0 0 4 – 5 S E P T E M B E R 2 0 0 4

T H E S T O R E – T E M E R L O H ( T E R M I N A L U TA M A ) G R A N D O P E N I N G1 6 J A N U A R Y 2 0 0 4

T H E S T O R E G R O U P 3 6 T H A N N I V E R S A RY C E L E B R AT I O N S‘SUPER M I L L ION R INGG I T R EWARDS ’

To celebrate its 36th anniversary, The Store Group 36th

Anniversary Celebrations ‘Super Million Ringgit Rewards’

was launched on 29th May 2004. This campaign aims to

reward its loyal customers through the years with wonderful

instant rewards and Grand Rewards of Automobile and

Holiday Packages.

Cake cutting ceremony to celebrate The Store Group’s 36thAnniversary.

Presentation of souvenir to Y.B. Dato’ Donald Lim Siang Chaiby Dato’ (Dr.) Tang Yeam Soon, Group Managing Director.

Cheque presentation ceremony of RM70,000.00 to 8 DownSyndrome Associations.

Official opening of The Store, Temerloh, TerminalUtama by En Norzam Bin Haji Ahmad, Yang DiPetua Majlis Perbandaran Temerloh.

Cultural dance performance during theopening ceremony.

4 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

E xpand i ng i t s s e r v i c e s t o mo r eMalaysians, The Store opened its 38thoutlet in Temerloh – Terminal Utamaearlier this year.

By doing so, The Store maintains its status as the Largest and Oldest ExistingSupermarket cum Departmental Chain inMalaysia as awarded by The MalaysiaBook of Records in 2001 and incontinuous succession until year 2005.

THE STORE GROUPAWARDED SUPERBRANDS2003/2004The Store Group was awarded Superbrands statusat the 2003/2004 Superbrands Awards TributeDinner held at Shangri La Hotel on 5th May 2004.This further consolidates The Store Group’s prestigeand excellence in the local retail industry.

EXCELLENCE &FORGING AHEAD THROUGH

Achieving business excellence has always been the norm for The Store Group. For thepast year, The Store Group has proven its dominance and competence as a leader in thelocal retail industry with the following achievement:

EXPANSION

Dato’ (Dr.) Tang Yeam Soon, Group Managing Directorreceiving the SuperbrandsAward.

Being a responsible corporate citizen, The Store Group organised many charity campaigns for various needy groups inMalaysia in the past year:

THE STORE GROUP, CHARITY OF MALAYSIANS AT HEART

8 Down SyndromeAssociations in Malaysia27 DECEMBER 2003 – 31 MARCH 2004

Malaysian Association ForThe Blind (MAB)

1 APRIL 2004 – 30 JUNE 2004

Penyayang PesakitKanser

1 JULY 2004 – 30 SEPTEMBER 2004

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

5

NOTICE IS HEREBY GIVEN that the Twelfth Annual General Meeting of the Company will be held at Starhill 1, Level 4, JWMarriott Hotel, 183, Jalan Bukit Bintang, 55100 Kuala Lumpur on Friday, 24 September 2004 at 10.00 a.m for the followingpurposes:

Agenda

1. To receive and adopt the audited financial statements of the Company for the financial year ended 31 March 2004 together with the reports of the Directors and Auditors thereon. Resolution 1

2. To approve the payment of a First and Final Dividend of 6% per share less tax at 28% in respect of the financial year ended 31 March 2004. Resolution 2

3. To approve the payment of Directors' Fees of RM132,000 for the financial year ended 31 March 2004. Resolution 3

4. To re-elect the following Directors who retire in accordance with the provisions of the Company's Articles of Association :

a) Dato’(Dr.) Tang Yeam Soon Resolution 4

b) Kam Teh Chung Resolution 5

c) Yeoh Chong Keng Resolution 6

5. To consider and, if thought fit, pass the following resolution under Section 129(6) of the Companies Act, 1965:

"THAT Dato' Haji Mohd Yusoff bin Haji Amin (a Director retiring in compliance with Section 129 of the Companies Act, 1965, being over the age of seventy years) be and is hereby re-elected a Director of the Company to hold office until the next Annual General Meeting." Resolution 7

6. To re-appoint Moores Rowland as Auditors for the ensuing year and to authorise the Board of Directors to fix their remuneration. Resolution 8

7. To transact any other ordinary business of which due notice shall have been given.

As Special BusinessTo consider and, if thought fit, to pass the following Resolutions as Ordinary Resolution:

8. ORDINARY RESOLUTIONAuthority to Directors to Issue and Allot Shares

"THAT pursuant to Section 132D of the Companies Act, 1965, the Directors be and are hereby empowered to issue shares in the Company at any time and upon such terms and conditions for such purposes as the Directors may, in their absolute discretion, deem fit, provided that the aggregate number of shares issued pursuant to this resolution in any one financial year does not exceed 10% of the issued capital of the Company for the time being and that the Directors be and are also empowered to obtain the approval for the listing of and quotation for additional shares so issued on Bursa Malaysia Securities Bhd and that such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company." Resolution 9

N O T I C E O F

ANNUAL GENERAL MEETING

6 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

9. ORDINARY RESOLUTIONProposed Renewal of Shareholders’ Mandate for Shares Buy-Back

"THAT, subject to the Companies Act, 1965 (as may be amended, modified or re-enacted from time to time), the Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities"), the Company's Articles of Association and all other applicable laws, regulations and guidelines and the approvals of all relevant government and/or regulatory authorities, the Company be and is hereby authorised to purchase such number of ordinary shares of RM1.00 each in the Company ("Proposed Share Buyback") as may be determined by the Directors of the Company from time to time through Bursa Securities as the Directors may deem fit in the interest of the Company provided that the aggregate number of shares purchased and/or held pursuant to this resolution does not exceed ten per centum (10%) of the total issued and paid-upshare capital of The Store at any point of time of the said purchase(s) and the maximum number of shares which may be purchased by The Store shall not exceed 6,850,360 shares.

AND THAT, upon completion of the purchase by the Company of its own shares ("The Store Shares"), the Directors are authorised to retain The Store Shares as treasury shares or cancel The Store Shares or retain part of The Store Shares as treasury shares and cancel the remainder. The Directors are further authorised to resell the treasury shares on Bursa Securities or distribute the treasury shares as dividends to the Company's shareholders or subsequently cancel the treasury shares or any combination of the three.

AND FURTHER THAT such authority shall be effective immediately upon passing of this resolution and will continue in force until :

(i) the conclusion of the next Annual General Meeting of the Company following the general meeting at which suchresolution was passed at which time it shall lapse unless by ordinary resolution passed at that meeting, the authority is renewed, either unconditionally or subject to conditions;

(ii) the expiration of the period within which the next Annual General Meeting after that date is required by law to be held; or

(iii) revoked or varied by ordinary resolution passed by the shareholders in the general meeting;

whichever occurs first but not so as to prejudice the completion of purchase(s) by the Company before the aforesaid expiry date and to take all steps as are necessary and/or to do all such acts and things as the Directors deem fit and expedient in the interest of the Company to give full effect to the Proposed Share Buyback with full powers to assent to any condition, modification, revaluation, variation and/or amendment (if any) as may be imposed by the relevant authorities”

Resolution 10

N O T I C E O F

ANNUAL GENERAL MEETING

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

7

ANNUAL REPORT 2004

NOTICE IS ALSO HEREBY GIVEN that the first and final dividend of 6% per share less tax at 28% in respect of the financialyear ended 31 March 2004, if approved, will be paid on 15 December 2004 to shareholders registered on the Company’sRegister of Members and/or Record of Depositors as at the close of business on 17 November 2004.

A Depositor shall qualify for entitlement only in respect of:-

a) Shares transferred to the Depositor's Securities Account before 4.00 p.m. on 17 November 2004 in respect of ordinary transfers; and

b) Shares bought on Bursa Malaysia Securities Bhd on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Bhd.

By Order of the Board

LEE WAI NGAN (Ms)CHEAH SEOK HUN (Ms)SecretariesKuala Lumpur

2 September 2004

Notes:1. 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 member may appoint more than one proxy to attend at the same meeting. Where a member appoints two ormore proxies, he must specify the proportion of his shareholdings to be represented by each proxy.

2. A proxy need not be a member of the Company.

3. If the appointer is a corporation, the form must be under its Common Seal or under the hand of an officer or attorney duly authorised.

4. The instrument appointing a proxy must be deposited at the Company’s Registered Office not less than 48 hours before thetime appointed for holding the meeting.

Explanatory Note on Special Business

Ordinary Resolution 9 – Authority to Allot and Issue Shares Pursuant to Section 132D of the Companies Act, 1965The Ordinary Resolution No. 9, if passed, will authorise the Directors to issue shares up to 10% of the issued and paid-up capital of the Company for the time being for such purposes as the Directors consider would be in the best interest of the Company. This authority will expire at the next Annual General Meeting.

Ordinary Resolution 10 – Proposed Renewal of Shareholders’ Mandate for Proposed Share Buy-BackThe Ordinary Resolution No. 10, if passed, will renew the mandate for the Company to buy back its own shares. The mandate shall continue to be in force until the date of the next Annual General Meeting of the Company unless earlier revoked or varied by ordinary resolution of the Company in a general meeting and is subject to annual renewal. Further information on this resolution is set out in the Share Buyback Statement dated 2 September 2004, which is sent together with this Annual Report.

N O T I C E O F

C L O S U R E O F B O O K S

8 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

9

ANNUAL REPORT 2004

1. Directors who are standing for re-election at the Twelfth Annual General Meeting:

The Directors retiring pursuant to Article 99:-a) Dato’(Dr.) Tang Yeam Soon Resolution 4b) Kam Teh Chung Resolution 5c) Yeoh Chong Keng Resolution 6

The Director retiring pursuant to Section 129 of the Companies Act,1965:-a) Dato’ Haji Mohd Yusoff Bin Haji Amin Resolution 7

Please refer to their profile on Page 17 of this Annual Report.

2. Details of Attendance of Directors at board meetings

There were five board meetings held during the financial year ended 31 March 2004. The details of attendance of the Directors at the board meetings are as follows :

Name of Director Attendance 1. Md Kamal bin Bilal 5/52. Dato’(Dr.) Tang Yeam Soon 5/53. Kam Teh Chung 5/54. Chang Yen Huei 5/55. Dato’ Dr. Haji Kardin bin Haji Shukor 5/56. Dato’ Haji Mohd Yusoff bin Haji Amin 3/57. Ishak bin Yusuf (retired on 26/9/2003) 2/58. Yeoh Chong Keng 5/59. Lim Gin Chuan 5/510.Datin Khor Guik Lee 5/5

3. The place, date and hour of General Meetings held during the financial year ended 31 March 2004

a) Eleventh Annual General Meeting held on Friday, 26 September 2003 at 10.00 a.m. at Prince 7 & 8, Prince Hotel & Residence Kuala Lumpur, Jln Conlay, 50450 Kuala Lumpur

b) Extraordinary General Meeting held on Friday, 26 September 2003 immediately after the Eleventh Annual General Meeting at the same venue

STATEMENT ACCOMPANYING NOTICE OF

ANNUAL GENERAL MEETINGPursuant to Paragraph 8.28 (2) of the Listing Requirements of Bursa Malaysia Securities Bhd

10 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Registered OfficeWisma Selangor Dredging6th Floor, South Block, 142-A Jalan Ampang, 50450 Kuala Lumpur.Tel: 603-2161 5466Fax: 603-2163 6968

RegistrarSystems & Securities Sdn BhdWisma Selangor Dredging,6th Floor, South Block, 142-A, Jalan Ampang, 50450 Kuala Lumpur.Tel: 603-2161 5466Fax:603-2163 6968

Principal Place of BusinessLot 9A, Jalan 223, Petaling Jaya46100 Selangor Darul EhsanTel : 603-7960 3233Fax: 603-7960 3299www.tstore.com.myemail: [email protected]

Company SecretariesMs Lee Wai Ngan (LS 00184)Ms Cheah Seok Hun (LS 03654)

AuditorsMoores RowlandWisma Selangor Dredging 7th Floor, South Block142-A, Jalan Ampang50450 Kuala Lumpur

Principal BankersMalayan Banking BerhadEON Bank Berhad

Stock Exchange ListingThe Company is a public company, incorporated and domiciled in Malaysia and listed on the Main Board of Bursa Malaysia Securities Bhd on 3 March 1994.

Sector : Trading

Stock Short Name : TSTORE

Stock Code : 5711

Board Of DirectorsMd Kamal bin Bilal ~ Chairman (Independent Non-Executive Director )

Dato’(Dr.) Tang Yeam Soon(Managing Director)

Kam Teh Chung (Executive Director)

Chang Yen Huei(Executive Director)

Datin Khor Guik Lee(Executive Director)

Dato' Dr. Haji Kardin bin Haji Shukor (Independent Non-Executive Director)

Dato' Haji Mohd Yusoff bin Haji Amin (Independent Non-Executive Director)

Yeoh Chong Keng (Independent Non-Executive Director)

Lim Gin Chuan (Independent Non-Executive Director)

Audit CommitteeDato' Dr. Haji Kardin bin Haji Shukor ~ Chairman(Independent Non-Executive Director)

Dato' Haji Mohd Yusoff bin Haji Amin(Independent Non-Executive Director)

Chang Yen Huei(Executive Director)

Remuneration CommitteeDato' Dr. Haji Kardin bin Haji Shukor ~ Chairman(Independent Non-Executive Director)

Yeoh Chong Keng(Independent Non-Executive Director)

Lim Gin Chuan (Independent Non-Executive Director)

Nomination CommitteeDato' Haji Mohd Yusoff bin Haji Amin ~ Chairman(Independent Non-Executive Director)

Yeoh Chong Keng (Independent Non-Executive Director)

Lim Gin Chuan (Independent Non-Executive Director)

C O R P O R A T E

I N F O R M A T I O N

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

11

ANNUAL REPORT 2004

The Store Holdings Sdn Bhd100%

The Store ( Kangar ) Sdn Bhd100%

The Store ( Kemaman ) Sdn Bhd100%

The Store ( Malaysia ) Sdn Bhd100%

The Store ( Subang ) Sdn Bhd100%

Taiping Supermarket Holdings Sdn Bhd100%

The Store ( Terengganu ) Sdn Bhd100%

The Store ( Kelantan ) Sdn Bhd100%

Gold Shopping Centre HoldingsSdn Bhd100%

The Store ( NS ) Sdn Bhd30%

The Store ( Bukit Pasir ) Sdn Bhd100%

The Store ( Port Dickson ) Sdn Bhd100%

Summit Superstore Holdings SdnBhd100%

TS Retail Systems Sdn Bhd100%

The Store ( Mentakab ) Sdn Bhd100%

The Store ( Muar ) Sdn Bhd100%

The Store ( Seremban ) Sdn Bhd100%

TS Universal Trading Sdn Bhd100%

Pacific Hypermarket Group SdnBhd100%

The Store ( Bentong ) Sdn Bhd100%

The Store ( Darul Naim ) Sdn Bhd100%

Delsinar Sdn Bhd100%

Nilai Hikmat Sdn Bhd100%

Formyarn Sdn Bhd67%

The Store ( Johore Bahru ) Sdn Bhd100%

Murai Perdana Sdn Bhd100%

The Store ( Malacca ) Sdn Bhd100%

The Store ( Batu Pahat ) Sdn Bhd100%

Taiping Corporation Sdn Bhd100%

The Store ( Taiping ) Sdn Bhd100%

The Store ( Pusat K.T ) Sdn Bhd100%

The Store ( Sungai Petani ) Sdn Bhd100%

The Store ( Taman Kok Lian ) Sdn Bhd100%

TS Universal Brands Sdn Bhd(Formerly known as The Store (Kulim) Sdn Bhd)100%

Arglye Sdn Bhd100%

The Store ( Summit Parade ) Sdn Bhd100%

The Store ( Kuantan Parade ) SdnBhd100%

The Store Properties Sdn Bhd100%

The Store Card Sdn Bhd100%

The Store ( Kluang ) Sdn Bhd100%

Pacific Hypermarket & Departmental Store Sdn Bhd100%

Pacific Hypermarket Properties SdnBhd100%

Bigever Properties Sdn Bhd100%

Pacific Hypermarket Sdn Bhd100%

Pacific Department Store Sdn Bhd100%

Larut Matang Supermarket HoldingsBerhad

The Store ( Johor Jaya ) Sdn Bhd100%

Cotler Sdn Bhd92.1%

The Store ( Taiping Jaya ) Sdn Bhd100%

The Store ( Tampin ) Sdn Bhd100%

The Store ( Kota Bharu ) Sdn Bhd100%

The Store ( Shah Alam ) Sdn Bhd100%

The Store ( Kampar Road ) Sdn Bhd100%

Visual Utama Sdn Bhd100%

Yangtze Corporation Sdn Bhd94.98% (Effective Interest)

The Store ( Klang ) Sdn Bhd100%

The Store ( Taman Tun Aminah )Sdn Bhd100%

The Store ( Central Square ) Sdn Bhd100%

Pacific Hypermarket ( Prai ) Sdn Bhd100%

Pacific Department Store ( Prai ) Sdn Bhd100%

THE STORE CORPORATION BERHAD

30%

29.63%

15.63%

70%

C O R P O R A T E

S T R U C T U R ETanjung Segi Sdn Bhd70%

12 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

L O C A T I O N O F

O U T L E T S

The Store - Shaw Parade

The Store - Plaza Alam Sentral

The Store - Jln Teoh Moh Soo

The Store - Jln Padang Garong

The Store - Jln Bandar

The Store - Jln Tuanku Munawir

The Store - Bus TerminalThe Store - Jln Dato Rauf

The Store - Tmn Tun Aminah

KANGARThe Store - Kayangan Square

KOTA BHARUThe Store - Jln Tok Hakim

The Store - Menara PerbadananKOTA BHARU

KOTA BHARU

KEMAMANThe Store - Centre Point

KUALA TERENGGANU

The Store - Kuantan Parade

BENTONG

MENTAKAB

KUANTAN

The Store - Vega Mall

The Store - Jln Mok Hee Kiang

MUAR

BATU PAHAT

BATU PAHAT

BATU PAHAT

The Store - Wetex Parade

The Store - Wira Court

The Store - Summit Parade

The Store - Jln Rugayah

The Store - Plaza BCB

SUNGAI PETANI

SUNGAI PETANI

KULIM

The Store - SP Plaza

The Store - Central Square

BUKIT MERTAJAM

The Store - Jln Kampar

TAIPING

TAIPING

IPOH

The Store - Jln Panggung Wayang

The Store -Wisma Dato' Toh Eng Hoe

KUALA LUMPUR

KUALA LUMPURThe Store - Tmn Kok Lian

KLANGThe Store - Shaw Centrepoint

SEREMBAN

TAMPIN

The Store - Jln Dato' Sheikh Ahmad

The Store - Oceanic Mall

The Store - Jln Besar

MALACCA

MALACCAThe Store - Kotamas

JOHOR BAHRU

JOHOR BAHRU

The Store - Komplek Lien Hoe

The Store - Tmn Johor Jaya

KLUANG

JOHOR BAHRU

KLUANG

SEREMBAN

PORT DICKSON

SHAH ALAM

ALOR STARPacific -

Komplek Star Parade

Pacific - Megamal PinangPERAI

The Store - Plaza BM

TERMELOHThe Store - Terminal Utama

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

13

ANNUAL REPORT 2004

On behalf of the Board of Directors, I am pleased to present the Company’s Annual Report and Audited Accounts for the financial

year ended 31 March 2004.

Financial Performance

The Group’s performance for the financial year ended 31 March 2004 has been commendable. The Group’s revenue increased

from RM1,137.9 million in the previous financial year to RM1,164.4 million, an increase of RM27 million or 2.3%. This increase

was mainly contributed by intensified promotional activities implemented by the Group and the successful loyalty card

programme of the Group.

We achieved a profit before tax of RM37.2 million and a profit after tax of RM27.0 million, which represent 11.0% and 29.2%

growths respectively over previous financial year’s profits. This corresponds with an increase in earnings per share from 30.50

sen to 39.41 sen.

Our improved performance has further enhanced shareholders’ value. Our shareholders’ funds rose from RM180.6 million to

RM204.9 million, an increase of RM24.3 million or 13.5%.

Dividend

The Board is pleased to recommend a first and final dividend of 6% less 28% tax amounting to RM2,959,355 (2003:

RM2,690,323) for the financial year ended 31 March 2004 for the shareholders at the forthcoming Twelfth Annual General

Meeting.

This recommended dividend is arrived at after taking into consideration the need to conserve capital to generate future profits

and growth, balanced by the commitment of the Board to provide shareholders with a fair and equitable return for investing in

the Company.

C H A I R M A N ’ S

S T A T E M E N T

14 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Operation Review

On 16 January 2004, the Company officially opened a new outlet at Temerloh (Terminal Utama), Pahang. This is the Company’s

fourth outlet in the state of Pahang. The other 3 outlets are located in Kuantan, Bentong and Mentakab.

The Group continues to strive to maintain its prestigious status via strategic business expansion by identifying potential locations

for new outlets. Presently, the Group occupies approximately 3.35 million square feet of retail space. Judging from the upturn

of the country’s retail sector in tandem with economic growth, the Group is confident that the Termeloh branch will do well with

strong support from local consumers.

Living up to the group‘s corporate slogan of “ The Store for Malaysia”, the Group has at least one outlet established in every

state in Peninsular Malaysia. The Group is looking forward to opening additional outlets with a possibility of even expanding

its operations towards East Malaysia.

In December 2003, The Store group launched “The Store Card Silver & Gold Loyalty Rewards Programme”. This programme

is the first of its kind in Malaysia to provide multi-tier and exclusive care for its cardholders. At RM20 and RM30 processing

fees charged per annum for becoming a member of The Store Card Silver and Gold respectively, cardholders can benefit from

the comprehensive and complimentary insurance coverage plan up to RM100,000 underwritten by American Home Assurance

Company (AIG).

The Store Group together with the Ministry of Domestic Trade and Consumer Affairs had launched the “Project Permasaran

Produk Industri Kecil & Sederhana Usahawan Bumiputera” at Plaza Alam Sentral, Shah Alam on 3 June until 4 July 2004.

One of the main missions of The Store is to expedite the growth of the small & medium industry in Malaysia, reflecting its

spirit as a Malaysian company. All this while, The Store has provided many opportunities and assistance to local entrepreneurs

in terms of marketing and products at its outlets, with the hope that local entrepreneurs can grow together with The Store.

This project was carried out throughout all The Store’s outlets; with the aim of increasing consumer awareness towards small

and medium industry’s (SMI) products. A total of 41 SMI entrepreneurs were involved in this project and 314 products had been

showcased. The Group hopes that this project can be extended annually at the state as well as national level to enhance the

participation of the SMI in supermarket and hypermarket categories, and the Group is also confident that the SMI players will

progress rapidly and be able to compete in the local market and subsequently the international market.

Corporate Development

During the financial year under review, the following corporate events have taken place in relation to the Group:

a) On 30 January 2004, the Company’s wholly-owned subsidiary, Pacific Hypermarket & Departmental Store Sdn Bhd had

entered into Sale & Purchase Agreements with Lembah Kencana Development Sdn Bhd for a acquisition of retail space

known as Unit G-888 and Unit 1-888 KB Mall, at Jalan Hamzah, Kota Bahru, Kelantan for a total cash consideration

of RM38,994,635.

C H A I R M A N ’ S

S T A T E M E N T

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

15

ANNUAL REPORT 2004

The acquisitions are in line with the company’s commitment towards increasing its retail space in order to build upon its

core business of retail activities.

b) On 18 February 2004, the Company announced the date of entitlement and book closure for its bonus issue, which was

fixed on 10 March 2004, with the additional 6,227,600 new ordinary shares of RM1.00 each granted listing on Bursa

Malaysia and quotation with effect from 23 March 2004.

c) On 12 May 2004, an Extraordinary General Meeting was held to pass a special resolution to approve the amendments

to The Memorandum & Articles of Association to empower the company to undertake its share buy back exercise and

an ordinary resolution to approve the purchase of its own shares up to a maximum of 10% of its paid-up share capital.

The Company has not entered into any share buy back transaction as at the date of this statement and the shareholders’

authority for the share buy back shall lapse at the conclusion of the forthcoming Annual General Meeting unless

renewal of the said authority is obtained from the shareholders at the said Annual General Meeting.

Therefore, the Company has proposed to renew the shareholders’ authority for the proposed share buy back at the

forthcoming Annual General Meeting. The Share BuyBack Statement is sent together with this Annual Report to all our

shareholders.

AchievementsThe Store was first recognized as the “Largest and Oldest Existing Supermarket cum Departmental Chain” in Malaysia by the

Malaysia Book of Records in 2001. This recognition has been extended to year 2005. The Store also been awarded with

“Superbrands” status in 2003/2004 under the retail category.

Corporate CitizenshipBeing a responsible corporate citizen, the Group has always actively contributed to charity campaigns for various needy groups

in Malaysia. During December 2003 to March 2004, the Group organized a charity campaign in conjunction with the charity

drive for eight Down Syndrome Associations in Malaysia. The charity fund was collected to provide various types of educational

programmes and special care to Down Syndrome Children. Furthermore, the Group has collected donations for the Malaysia

Association For The Blind during the another charity campaign from April to June 2004.

Recently, the Group launched another charity campaign for Penyayang Pesakit Kanser (PPK), a charity foundation chaired by

the wife of the Prime Minister, YABhg Datin Paduka Seri Endon Mahmood. This campaign will run until September 2004 with

the purpose of assisting PPK in financing cancer patients’ treatments.

C H A I R M A N ’ S

S T A T E M E N T

16 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Prospects The outlook for the local retail industry is promising, as reflected by both the economic growth of the country as well as increasing

levels of consumer spending. The Malaysian economy grew by 5.2% in 2003 and by a robust 7.6% in the first quarter of 2004,

year on year, and is expected to expand by 6.0%-6.5% for the entire 2004. The Malaysian Institute of Economic Research (MIER)

Retail Trade Index set a new high of 137 points in the second quarter of 2004, as an indication of the positive sentiment of both

retailers and consumers in the market.

The Group is confident of its future growth by way of improvements to its existing outlets as well as upcoming expansion plans,

which are expected to contribute positively to its financial performance.

AcknowledgmentOn behalf of the Board, I would like to express our deep appreciation to all our shareholders, customers, business associates,

suppliers, bankers as well as governmental and regulatory authorities for their continuing support and confidence in our Group.

Last but not least, I must acknowledge the contribution of our Group’s employees for their strong dedication, support and hard

work throughout the financial year, without which, the results achieved today would not have been possible.

Md Kamal bin Bilal

Chairman

Date : 20 August 2004

C H A I R M A N ’ S

S T A T E M E N T

Malaysian, aged 45, was appointed to theBoard on 21 February 2001 as ExecutiveDirector and co-opted as Group ManagingDirector on 23 November 2001.

Dato’ Tang has more than 20 years ofexperience in the business sector, particularlyin the retail industry. He founded his first company at the age of 20, and held the position of Managing Director. Under hisleadership, the company was listed on Bursa

Malaysia Securities Bhd’s Second Board 13 years later. Thereafter, he founded Pacific Hypermarket & Departmental Store SdnBhd and held the position of Managing Director before forging his career with The Store Group.

Under his strategic leadership, The Store Group was certified as the Largest & Oldest Existing Supermarket cum DepartmentalChain in Malaysia by The Malaysia Book of Records in 2001 which has been extended until 2005. Subsequently, The Store wasawarded the Superbrands status by the Malaysia Superbrands Council 2003/2004. The Store was also successfully listed in

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

17

ANNUAL REPORT 2004

Md Kamal bin Bilal (Chairman)

Malaysian, aged 42, was initially appointed to theBoard on 14 February 2000 as Non-ExecutiveDirector and co-opted as Chairman on 2 November2001.

He has over 13 years of experience in the governmentsector, serving as a Community Development Officerin the Ministry of National & Rural Development for 7years and as a Supervisor in the parliamentary fieldtill to date. His business experience includes managingan automobile dealership for the State of Penang.Currently, he also sits on the board of several privatecompanies and a public listed company, KBBResources Bhd.

En Kamal does not have any family relationship with any Directors and/or major shareholders of The Store Corporation Bhdor any personal interest in any business arrangement involving the Company. He has not been convicted for any offences within the past 10 years.

D I R E C T O R S ’

P R O F I L E

Dato’ (Dr.) Tang Yeam Soon,D.S.N.S.(Managing Director)

18 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Kam Teh Chung(Executive Director)

Malaysian, aged 55, is an Executive Director whowas re-appointed to the Board on 31 May 2001and is currently holding the position of GroupOperations Director.

He was previously a Board member serving asExecutive Director of The Store Corporation Berhaduntil his resignation on 30 March 2000. Prior tothat, he had served in various and varied capacitiesin the outlets within the Group. He has theexperience and knowledge in supermarket anddepartment store industry for more than 20 years.Coupled with his knowledge and experience, healso has an impeccable standing in the retail business industry. He does not hold any other directorship in any public companies.

Mr Kam does not have any family relationship with any Directors and/or major shareholders of The Store CorporationBhd or any personal interest in any business arrangement involving the Company. He has not been convicted for anyoffences within the past 10 years.

D I R E C T O R S ’

P R O F I L E

Malaysia 1000 in 2003, which is a directory of the top 1000 performing companies in Malaysia. His valuable contribution tothe retail industry is further extended through his appointment as the Council Member of the Malaysia Retailers Association(MRA). Hence, his conferment of a Doctorate of Philosophy (PhD) in Business Administration (Honoris Causa) by HonoluluUniversity, Hawaii, is indeed a true acknowledgement and recognition of his invaluable contribution to the development of thecountry’s retail industry.

As Group Managing Director, Dato’ Tang is mainly responsible for setting and reviewing the operation strategic and successionplans of the Group, evaluating and monitoring the Group’s performance goals and management risk. Presently, he also sits onthe board of several private companies and does not hold any other directorship in any public companies.

Dato’ Tang is the spouse of Datin Khor Guik Lee who is a director and also a major shareholder of The Store Corporation Bhd.Save as disclosed, he does not have any family relationship with any Directors and/or major shareholders of The StoreCorporation Bhd or any personal interest in any business arrangement involving the Company. He has not been convicted forany offences within the past 10 years.

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

19

ANNUAL REPORT 2004

Datin Khor Guik Lee(Executive Director)

Malaysian, aged 43, was appointed to the Board on 27February 2003 as Executive Director. She has more than 20years of experience in the retail industry. With her spouse,Dato’(Dr.) Tang Yeam Soon, they formed a company in which sheheld the position of Executive Director and the company was subsequently listed on Second Board of Bursa Malaysia SecuritiesBhd 13 years later. Thereafter, she joined Pacific Hypermarketand Departmental Store Sdn Bhd as an Executive Director. As aboard member of Pacific, she participated actively and constructively in all the board deliberations towards the futuregrowth and direction of Pacific group. Presently, she also sits onthe board of several private companies. She does not hold anyother directorship on any public companies.

She is the spouse of Dato’ (Dr.) Tang Yeam Soon who is a director and a major shareholder of The Store Corporation Bhd. Saveas disclosed, she does not have any family relationship with any Directors and/or major shareholders of The Store CorporationBhd or any personal interest in any business arrangement involving the Company. She has not been convicted for any offenceswithin the past 10 years.

Chang Yen Huei(Executive Director)

Malaysian, aged 40, was appointed to the Board on2 November 2001 as Executive Director and is currently holding the position of Group FinanceDirector and appointed as a member of the AuditCommittee on 23 November 2001.

He is a fellow of Chartered Association of CertifiedAccountants, UK and a member of the MalaysianInstitute of Accountant. He has gained valuable experience in accounting and financial managementthrough his attachment over 10 years in variousindustries such as professional accounting firms, computer and retailing industries. He was theAccountant of MCL Corporation Berhad for 3 years before joining Pacific Hypermarket Group Sdn Bhd (PHG) as a GroupAccountant in 1996. He was subsequently promoted to Group Financial Controller of PHG and further appointed as GroupFinancial Controller of The Store Corporation Berhad in February 2001. In the same year, he was promoted to Group FinanceDirector. He does not hold any other directorship in any public companies.

Mr Chang does not have any family relationship with any Directors and/or major shareholders of The Store Corporation Bhdor any personal interest in any business arrangement involving the Company. He has not been convicted for any offences within the past 10 years.

D I R E C T O R S ’

P R O F I L E

Dato’ Haji Mohd Yusoff bin Haji Amin,SMS.,PJK.,JP.(Independent & Non-Executive Director)

Malaysian, aged 74, is an Independent and Non-Executive Directorand was appointed to the Board on 24 April 2000. He was appointedas a member of the Audit Committee on 31 July 2000 and asChairman of the Nomination Committee on 30 July 2001.

He has held many illustrious positions in a distinguished career in thePublic Service. Most notable was the period he served as the PrivateSecretary to His Royal Highness, the late Sultan Of Selangor DarulEhsan. He served with distinction in this position for over 18 years.He also has the proud record of holding the following appointments/positions for varying periods in the State of SelangorDarul Ehsan namely, Orang Besar Daerah Petaling, DistrictCouncillor of Petaling, Member of the Dewan DiRaja, MunicipalCouncillor of Shah Alam, Member of the Council State Museum,Majlis Agama Islam and the Council of University PertanianMalaysia.

Presently, Dato’ Yusoff sits on the board of directors of many public and private companies including Southern Acids (M) Berhadand Khee San Berhad. He was also the Honorary Advisor to the Council of Justices of the Peace and Society of the Royal DatosSelangor Darul Ehsan during which period he served as President from 1994 to 1997.

He does not have any family relationship with any Directors and/or major shareholders of The Store Corporation Bhd or any personal interest in any business arrangement involving the Company. He has not been convicted for any offences within thepast 10 years.

20 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Yeoh Chong Keng(Independent & Non-Executive Director)

Malaysian, aged 52, is an Independent and Non-ExecutiveDirector who is a lawyer by profession and was appointedto the Board on 14 February 2000. He was appointed as amember of the Nomination Committee on 30 July 2001 andas a member of the Remuneration Committee on 27 February2003.

He was a senior police officer in the Royal Malaysian PoliceForce before proceeding to read Law at Lincoln’s Inn,England. He was called to the English Bar and Malaysian Barin 1980 and 1981 respectively and is currently a SeniorPartner of a Legal Firm. Currently, he is a director of Asia Life(M) Bhd.

He does not have any family relationship with any Directors and/or major shareholders of The Store Corporation Bhd or anypersonal interest in any business arrangement involving the Company. He has not been convicted for any offences within thepast 10 years.

D I R E C T O R S ’

P R O F I L E

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

21

ANNUAL REPORT 2004

Lim Gin Chuan(Independent & Non-Executive Director)

Malaysian, aged 41, is an Independent and Non-ExecutiveDirector who was appointed to the Board on 31 January 2000. Hewas appointed as a member of the Remuneration Committee on30 July 2001 and as member of the Nomination Committee on 27February 2003.

He obtained his Bachelor of Economics (major in Accounting) andBachelor of Law Degree from Monash University, Melbourne,Australia. He served as a legal assistant in a Legal Firm in 1989to 1990. From 1991 until the present date, he has been a partnerin the legal firm. His main areas of expertise are in the field of conveyancing, banking and company law. His firm serves as thepanel solicitors for various banks and finance companies. He isalso presently a Director of Wong Engineering Berhad and SDKMFibres, Wires & Cables Bhd.

He does not have any family relationship with any Directors and/or major shareholders of The Store Corporation Bhd or anypersonal interest in any business arrangement involving the Company. He has not been convicted for any offences within thepast 10 years.

D I R E C T O R S ’

P R O F I L E

Dato’ Dr. Haji Kardin bin Haji Shukor,SMJ.,AMN., PIS., JSM.,(Independent & Non-Executive Director)

Malaysian, aged 65, is an Independent and Non-ExecutiveDirector who was appointed to the Board on 13 December1993 and appointed as Chairman of the Audit Committee.He became the Chairman of the RemunerationCommittee on 30 July 2001.

He is a qualified Veterinarian and dedicated to his work inanimal husbandry for which he has held many top positionsin the public veterinary service. In 1963, he was secondedas Assistant Veterinarian with the Institute of VeterinaryResearch, Ipoh and subsequently, transferred to KualaPilah district before furthering his studies at the University ofQueensland in 1965.

Upon his return to Malaysia in 1969, Dato Dr. Kardin was appointed as Director of Veterinary Service for Kedah followed byother such appointments in various districts throughout Peninsular Malaysia. He does not hold any other directorship in any public companies.

Dato’ Kardin does not have any family relationship with any Directors and/or major shareholders of The Store Corporation Bhdor any personal interest in any business arrangement involving the Company. He has not been convicted for any offences within the past 10 years.

The Malaysian Code of Corporate Governance (“the code”) was introduced in March 2000, and sets out the Principles and BestPractices for compliance by any organisation.

The Listing Requirements of Bursa Malaysia Securities Bhd require a listed company to apply the Principles and Best Practicesof the code to raise standards of Corporate Governance.

The Board strives to adopt and practice the principles of good corporate governance. Hence, appropriate processes and standards have been implemented to ensure overall Board effectiveness and proper management conduct. The Board is pleasedto present the manner in which it has applied the principles and best practices set out in the code throughout the year ended31 March 2004.

A. THE BOARD OF DIRECTORS

(i) Composition

The Company’s Articles of Association currently provide for a board composed of a maximum of eleven directors.The present Board is composed of 9 directors as at the date of this statement :-

1 Independent & Non-Executive Chairman1 Managing Director3 Executive Directors4 Independent & Non-Executive Directors

The present composition of the Board complies with the Bursa Malaysia Securities Bhd’s requirement for at least two directors or one-third of the Board, whichever is the higher number, to be independent directors.

In the opinion of the Board, the number of members is sufficient and fairly reflects the investment in the Company byshareholders other than the largest shareholders. The Board, having reviewed its size and composition, is also satisfied that it is effective for the proper functioning of the Board.

The Directors are from diverse professional backgrounds with a wide range of expertise in the fields of business, political science, management, administration, legal, finance and accounting. The mix of skills and experience is vital for the successful performance of the Board.

The profile of all the directors are set out on pages 17 to 21 of this Annual Report.

All the members of the Board complied with the limitation of directorship requirement pursuant to Listing Requirements of Bursa Malaysia Securities Bhd.

(ii) Responsibility

The Store has an effective Board of Directors which leads and controls The Store Group to discharge its stewardshipresponsibilities pursuant to the best practices of the code. The Board’s principal responsibilities are as follows:

S T A T E M E N T O F

CORPORATE GOVERNANCEPursuant to Paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Bhd

22 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

• Reviewing and adopting a strategic plan for the Group• Developing investor relation programme on shareholder communication policy of the Group• Evaluating and overseeing the Group’s business to ensure the business is properly managed• Reviewing the adequacy and the integrity of the Group’s internal control systems and Management Information

System including systems for compliance with applicable laws, regulations, rules, directives and guidelines• Maintaining high standards of ethics and corporate behaviour

The Executive Directors are generally responsible for making and implementing operational decisions whilst the Non-Executive Directors support the skills and experience of the Executive Directors contributing to the formulation of policies and decision making through their knowledge and experience of other business sectors.

There is a clear division of responsibilities between the Chairman and Managing Director to ensure balance of powerand authority. The Chairman is primarily responsible for ensuring Board effectiveness and conduct whilst Managing Director oversees the day-to-day running of the business implementation of Board policies and decisions and making of operations decisions.

The presence of Independent Non-Executive Directors brings an additional element of balance to the Board as they provide unbiased and independent view, advise and judgment to take into account the interest, not only of the Group, but also of the shareholders, employees, customers and other stakeholders.

The Board does not consider it necessary to nominate a recognized Senior Independent Non-Executive Director to the Board to whom any concerns may be conveyed, in view of the present independent element of the board composition and the separation of the roles of the Chairman and Managing Director.

(iii) Board Meeting

The Board meets at least four times a year, with additional meetings convened when necessary.

During the year ended 31 March 2004, the Board met a total of five times. Details of the attendance of the directors are stated on page 9 of this Annual Report.

(iv) Supply of Information

Executive Management and the Company Secretaries, is responsible for organising the Board meeting agenda and full set of board papers for each agenda item to be discussed. The agenda and board papers are disseminated in advance to facilitate informed decision-making process and all the directors are entitled to request for additional clarification and information to assist them in matters that require their decision.

All the directors have access to the advices and services of the Company Secretaries and also to take independent professional advices relating to the affairs of the Group at the Company’s expense, in order to fulfill their duties and specific responsibilities, if so required.

At the Board meetings, other management staff may be invited to attend meetings for any particular matter or issue within their purview and/or responsibility. As and when required, auditors, solicitors and other advisers may also be required to attend the Board meetings to give the Board a clearer understanding of a particular matter/issue.

The Company Secretaries are available at all times to ensure that the relevant procedures are complied with in accordance with the rules and regulations of the relevant authorities.

In the intervals between Board meetings, any matter requiring Board decisions, Board approvals are obtained through circular resolutions.

S T A T E M E N T O F

CORPORATE GOVERNANCEPursuant to Paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Bhd

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

23

ANNUAL REPORT 2004

(v) Re-election of Directors

In accordance to the Articles of Association of the Company, provide for the following in respect of the re-election of directors:

a) One-third of the directors, including the Managing Director shall retire from office and be eligible for re-election at each Annual General Meeting;

b) All the directors shall retire from office once at least in each three (3) years but shall be eligible for re-election; and

c) All directors who are appointed during the year will be subject to retirement and re-election byshareholders at the Annual General Meeting following their appointment.

Directors over seventy (70) years of age are required to submit themselves for re-appointment annually in accordance with Section 129 (6) of the Companies Act, 1965.

Details of directors seeking re-election at the forthcoming AGM are disclosed in the statement accompanying the Notice of AGM as set out on Page 9 of this Annual Report.

(vi) Directors Training

All the directors had attended the Mandatory Accreditation Programme conducted by Research Institute of Investment Analysis Malaysia, an affiliate company of Bursa Malaysia Securities Bhd.

Besides complying with the requirements as set out under Practice Note 15 to complete the Continuing Education Programme (“CEP”) within the stipulated time frames, the directors always undergo other relevant trainingprogrammes to keep them abreast with the developments in relevant laws, regulations and the business environment.

(vii) Board Committees

The Board has delegated certain responsibilities to its committee which operate within clearly defined terms of reference:-

a) Audit Committee

The terms of reference and further information on the Audit Committee are set out on Pages 31 to 34 of this Annual Report.

b) Remuneration Committee

The Remuneration Committee was established on 30 July 2001 and its present members as at the date of this statement are as follows:

~ Dato’ Dr. Haji Kardin bin Haji Shukor - Chairman(Independent & Non-Executive Director)

~ Mr. Yeoh Chong Keng - Member(Independent & Non- Executive Director)

~ Mr. Lim Gin Chuan - Member (Independent & Non-Executive Director)

S T A T E M E N T O F

CORPORATE GOVERNANCEPursuant to Paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Bhd

24 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

The Remuneration Committee is responsible for developing the remuneration packages and benefits of the Executive Directors and make the necessary recommendations to the Board for approval. Non-Executive Directors’ remunerations are determined by the full Board. Directors do not participate in decisions on their own remuneration packages. Directors’ fees are approved by the shareholders at the Annual General Meeting.

c) Nomination Committee

The Nomination Committee was established on 30 July 2001 and its present members as at the date of this statement are as follows:-

~ Dato’ Haji Mohd Yusoff bin Haji Amin - Chairman(Independent & Non-Executive Director)

~ Mr. Yeoh Chong Keng - Member(Independent & Non-Executive Director)

~ Mr. Lim Gin Chuan - Member(Independent & Non-Executive Director)

The Nomination Committee is responsible for nominating new candidates to the Board and to ensure the appropriate Board balance and size as well as to review the required mix of skills, experience, other competencies and recommend to the Board accordingly. The Board will implement the process which is to be carried out by the Nomination Committee, for assessing the effectiveness of the individual directors and the Board as a whole.

The Company Secretary is responsible for ensuring that appointments are properly made and all necessary information is obtained from the directors in compliance with the requirements of the Companies Act, 1965, Listing Requirements of Bursa Malaysia Securities Bhd, Security Industry Act, 1983 and the regulatory requirements.

B. DIRECTORS’ REMUNERATION

The Company’s Remuneration scheme for Executive Directors is linked to performance, seniority, experience and scope of responsibility and is reviewed periodically having regard to market/industry standards. For Non-Executive Directors, the level of remuneration reflects the responsibilities and duties undertaken by them. All the Directors are paid a fixed fee,except for the Chairman who is paid a higher fee in recognition of his additional responsibilities.

The Remuneration Committee recommends to the Board the directors’ fee for each Director of the Company and which is subject to the approval of the shareholders. The members of the Audit Committee are paid a fixed fee.

The details of the remuneration of the Directors of the Company for the financial year ended 31 March 2004 are as follows:-

Executive Non-Executive Total(RM) (RM) (RM)

FeesSalariesAllowance & other emoluments

108,000-

142,000---------------

250,000=========

492,0001,272,000

5,000---------------1,769,000

=========

600,0001,272,000

147,000---------------2,019,000

=========

S T A T E M E N T O F

CORPORATE GOVERNANCEPursuant to Paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Bhd

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

25

ANNUAL REPORT 2004

The number of Directors in each remuneration band for the financial year ended 31 March 2004 is as follows:-

C. SHAREHOLDERS

(i) Relationship with Shareholders

The Group recognises the importance of establishing a direct line of communication with shareholders and investors through timely dissemination of information including the distribution of annual reports and relevant circulars to shareholders, issuance of press releases, announcement of the quarterly financial results of the Company to Bursa Malaysia Securities Bhd. In additional to the above, dialogue sessions are held between the management and the analysis and/or shareholders upon request and information on developments are disseminated to the media after general meeting or corporate events.

The Group has established a website to enable the public and shareholders to access information on the promotion, performance, activities undertaken as well as achievements of the Group at www.tstore.com.my.

(ii) Shareholders’ Meeting

The Annual General Meeting and Extraordinary General Meeting are the forum to communicate with individual shareholders and investors to seek clarifications on the operations, financial performance and major developments of the Group.

The Board has adopted the following best practices to enhance the efficiency and vote of general meeting:-

• For re-election of directors, ensures that the notice of meeting identifies the directors standing for re-election or election with a brief description of that particular director;

• Ensures that each item of special business included in the notice of meeting is accompanied by a fullexplanation of the effect of the proposed resolution; and

• Ensures that the Chairman provides reasonable time at the meeting for discussion and for a question and answer session.

Where appropriate, the Chairman will undertake to provide a written answer to any significant questions that cannot be readily answered at the meeting. The management and the external auditors are also present at the meeting to provide their professional and independent clarification on issues and concerns raised by theshareholders. The outcome of all resolutions proposed at the general meeting is announced to Bursa Malaysia Securities Bhd at the end of the meeting day.

Range of RemunerationBelow RM 50,000RM 50,000 – RM100,000RM200,000 – RM250,000RM300,000 – RM350,000RM550,000 – RM600,000RM650,000 – RM700,000

Executive--1111

Number of Directors Non-Executive

51----

Total511111

S T A T E M E N T O F

CORPORATE GOVERNANCEPursuant to Paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Bhd

26 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

D. ACCOUNTABILITY AND AUDIT

(i) Financial Reporting

The Board is responsible to ensure that the annual financial statements of the Company and the Group are drawn up in accordance with the requirements of the applicable approved accounting standards in Malaysia and the provisions of The Companies Act, 1965. The audit committee assists the Board by reviewing the information to be disclosed before recommended to the Board for approval. The Directors’ Responsibility statement explaining the responsibility of the Board for preparing the annual audited financial statements of the Group and the Company for the financial year ended 31 March 2004 is set out on pages 36 to 72 of this Annual Report.

During the year under review, the Board has ensured quality financial reporting to its shareholders, investors andregulatory authorities in order to present a balanced, clear comprehensive assessment of the Company’s and Group’s performance and prospects. As part of the Company’s continuing disclosure obligation under the Listing Requirements, the Board ensures that timely, accurate and up-to-date financial information relating to the Company’s and Group’s quarterly financial results are announced to Bursa Malaysia Securities Bhd.

(ii) Relationship with the Auditors

The external auditors attended all scheduled meetings of the Audit Committee during the year. The Company maintains a transparent relationship with the external auditors in seeking their professional advice and ensuring compliance with relevant accounting standards.

The role of the Audit Committee in relation to the external auditors during the year is stated in the Audit Committee’s report on pages 31 to 34 of this Annual Report.

(iii) Internal Control

The Internal Control Statement for the Group is set out on pages to 29 to 30 of this Annual Report.

(iv) Statement of Directors’ Responsibility

The Board of Directors is required under Paragraph 15.27 (a) of the Listing Requirements of Bursa Malaysia Securities Bhd to issue a statement explaining its responsibility for preparing the annual audited financial statements.

The Directors are required by law to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the Company as at the financial year ended and of the results and cash flows of the Group and of the Company for the financial year then ended.

The Directors consider that, in preparing the financial statements of The Store Corporation Bhd for the financial year ended 31 March 2004, the Company has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgments and estimates. The Directors also consider that all applicable approved accounting standards in Malaysia have been followed and confirm that the financial statements have been prepared on a going concern basis.

The Directors are responsible for ensuring that the Company keeps accounting records which disclose with reasonable accuracy at any time the financial positions of the Company which enable them to ensure that the financial statements comply with the provisions of the Companies Act, 1965.

The Directors are also responsible for taking such steps that are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

This Statement is made in accordance with a resolution of the Board of Directors dated 30 July 2004.

S T A T E M E N T O F

CORPORATE GOVERNANCEPursuant to Paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Bhd

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

27

ANNUAL REPORT 2004

E. COMPLIANCE WITH THE CODE

The Group is substantially in compliance with the code during the financial year under review. The Board is committed toachieve high standards of Corporate Governance throughout the Group and to the highest level of integrity and ethical standard in all its business dealings.

OTHER INFORMATION:-

1. UTILISATION OF PROCEEDSOn 16 April 2003, the Securities Commission approved the Commercial Papers and Medium Term Notes (collectively known as “ The Programme”) of the Company with an aggregate nominal value of up to RM200 million. The Programme which will mature seven years from the date of the first issuance is to finance the Group’s working capital requirements, refinance the whole or part of the Group’s existing short term borrowings and to finance capital expenditure for setting up new branches/outlets, investment in similar businesses and renovation works/upgrading costs on existing outlets.

Under this Programme, the Company has issued Medium Term Notes of RM20 million for a tenure of 3 years and 6 months, on 29 June 2004. The Company has also issued Commercial Papers of RM50 million for a tenure of 3 months, on 9 July 2004, to replace its maturing Commercial Papers of the same amount.

2. SHARE BUYBACKSDuring the financial year, there were no share buybacks by the Company. On 12 May 2004, the shareholders of the Company had approved the proposed share buyback and the authority shall be renewed at this forthcoming Annual General Meeting.

3. AMERICAN DEPOSITORY RECEIPT (ADR) OR GLOBAL DEPOSITORY RECEIPT (GDR) PROGRAMMESDuring the financial year, the Company did not sponsor any ADR or GDR programmes.

4. IMPOSITION OF SANCTIONS AND/OR PENALTIESThere were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or Management by the relevant regulatory bodies.

5. NON-AUDIT FEESThe amount of non-audit fees paid to the external auditors by the Company for the period amounted to RM75,000.

6. VARIATION IN RESULTSThere was no material variance between the results of the financial year and the unaudited results previously announced.The Company did not make any release on the profit estimate, forecast or projections for the financial year.

7. PROFIT GUARANTEESDuring the financial year, there was no profit guarantees given by the Company.

8. MATERIAL CONTRACTSDuring the financial year, there were no material contracts of the Company and its subsidiaries involving Directors’ and major shareholders’ interests.

9. CONTRACTS RELATING TO LOANSThere were no material contracts relating to loans by the Company involving Directors and major shareholders.

10. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIESDuring the financial year, no options, warrants or convertible securities were issued by the Company.

11. REVALUATION OF LANDED PROPERTIESThe Company does not have a revaluation policy on landed properties.

This Statement is made in accordance with a resolution of the Board of Directors dated 30 July 2004.

S T A T E M E N T O F

CORPORATE GOVERNANCEPursuant to Paragraph 15.26 of the Listing Requirements of Bursa Malaysia Securities Bhd

28 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

In line with Bursa Malaysia Securities Bhd’s Listing Requirements, the Board of Directors is committed to maintaining a soundsystem of internal controls for the Group and therefore pleased to provide a Statement of Internal Control, which outlines thekey elements of this system within the Group.

1) THE BOARD’S RESPONSIBILITY

The Board of Directors recognises the importance of good corporate governance and affirms its overall responsibility for maintaining a sound system of internal control that covers all aspects of the Group’s business. In recognition of that responsibility, the Board sets policies and seeks regular assurance that the system of internal control is operating effectively. While acknowledging their responsibility for the system of internal control, the directors are aware that a sound system of internal control and risk management can only help to manage but not totally eliminate the risk that may impede the achievement of the Group’s business objectives. Accordingly, such a system can only provide reasonable rather than absolute assurance against material misstatements, losses, fraud or breaches of law or regulations.

2) RISK MANAGEMENT

The Board and Management are responsible for the on-going identification, evaluation and managing of significant risks faced by the Group. The Group has an embedded process for the identification, evaluation and reporting of the major business risks within the Group. Policies and procedures have been laid down for the regular review and management of these risks. Regular reviews of the most significant areas of risk are undertaken to ensure that key control objectives remain in place.

3) KEY PROCESS OF THE GROUP’S SYSTEM OF INTERNAL CONTROL

The key process of the internal control functions is inculcated within the various procedures. During the financial year, the Group’s key internal control processes can be summarized as follows:

1. Properly defined organizational structure with clear lines of accountability, with strict authorisation, approval and control procedures which provide a sound framework of authority and accountability within the Group.

2. Clearly defined financial limits of authority on all financial commitments for each level of management within the Group. Such limits are subject to periodic reviews as to their implementation and continuing suitability.

3. Documented internal operating policies and procedures set out in the Group’s Standard Operating Procedures (SOP), which are periodically reviewed, to provide guidelines in compliance to Group objectives.

4. Comprehensive budgeting and costing process for all operating units with monthly monitoring of performances so that any material variances can be followed up and addressed by management.

5. Enhanced retail management and operating system for timely monitoring and control of the Group’s business operations.

6. Regular top/senior management meetings were conducted to share information, monitor the progress of various business units, and to deliberate and decide upon operational matters.

7. Regular management visits of its operating business units to ensure all business activities and operational issues and matters are brought to the prompt attention of the management for further action to be taken and to gauge the effectiveness of strategies implemented.

I N T E R N A L

CONTROL STATEMENT

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

29

ANNUAL REPORT 2004

4) INTERNAL AUDIT FUNCTION

The internal audit function of the Group is carried out by an adequately resourced internal audit department, which provides the Board with much of the assurance it requires regarding the adequacy and effectiveness of the Group’s systemof controls, procedures and operations. The Group’s Internal Audit Department undertakes the role as the risk facilitator in identifying significant risks impacting the achievement of business objectives of the Group. Besides, it also undertakes reviews of internal controls in all key activities of the Group in assuring its adequacy and integrity. The internal auditors advise management on areas for improvement and subsequently review the extent to which the management’s responses and the remedial actions on all findings and recommendations in its review process have been implemented. During they year under review, the internal auditors conducted various audit assignments which includes the review of operational and compliance controls, management efficiency, risk assessment and reliability of financial records.

5) CONCLUSION

The Board is satisfied that, during the year under review, the system of internal control being instituted throughout the Group is sound and effective. The Board remains committed towards operating a sound system of internal control and therefore recognize that the system must continuously evolve to support the type of business and size of 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.

This Statement is made in accordance with a resolution of the Board of Directors dated 30 July 2004.

I N T E R N A L

CONTROL STATEMENT

30 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

The Board of Directors of The Store Corporation Bhd is pleased to present the report of the Audit Committee for the financialyear ended 31 March 2004.

The Audit Committee was established by the Board on 25 April 1994 and comprises the following members as at the date ofthis statement:

Chairman : Dato' Dr. Haji Kardin bin Haji Shukor (Independent & Non-Executive Director)

Member : Dato' Haji Mohd Yusoff bin Haji Amin (Independent & Non-Executive Director)

Member : Mr. Chang Yen Huei(Executive Director)

A) Terms of Reference

The terms of reference incorporating the requirements of the Listing Requirements of Bursa Malaysia Securities Bhd has been reviewed and adopted by the Audit Committee.

1. Membership

a) The Audit Committee shall be appointed by the Board from among its members.

b) The term of office of audit and the terms of reference shall be reviewed by the Board not less than once every three years.

c) The Committee shall consist of not less than three members, the majority of which shall be Independent Non-Executive Directors. The word “Independent” shall be the same as defined in the Listing Requirements of Bursa Malaysia Securities Bhd.

d) An alternate director shall not be appointed as a member of the Committee.

e) At least one member:i) must be a member of the Malaysian Institute of Accountants ; orii) if he is not a member of the Malaysian Institute of Accountants, he must have at least 3 years’ working

experience and ; • he must have passed the examinations specified in Part I of the 1st Schedule of the Accountants Act,

1967; or• he must be a member of one of the associations of accountants specified in Part II of the 1st Schedule

of the Accountants Act, 1967.

Pursuant to paragraph 7.0 of Bursa Malaysia Securities Bhd Practice Note No. 13/2002 and with effect from 1 January 2003, it is prescribed that the following qualifications are also acceptable:-

i) A degree/master/doctorate in Accounting or Finance and at least 3 years’ post qualification experience in Accounting or Finance; or

ii) At least 7 years’ experience being a Chief Financial Officer of a corporation or having the function of being primarily responsible for the management of the financial affairs of a corporation.

A U D I T

C O M M I T T E E R E P O R T

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

31

ANNUAL REPORT 2004

f) No member of the Committee shall be :-i) a spouse, parent, brother, sister, son or adopted son, daughter or adopted daughter of an Executive

Director of the Company or of any related corporation, or ;

ii) spouse of brother, sister, son or adopted son, daughter or adopted daughter of an Executive Director of the Company or of any related corporation, or any person having a relationship which, in the opinion of the Board of Directors, would interfere with the exercise of independent judgement in carrying out the function of the Audit Committee.

g) The members of the Committee shall select a chairman from among their number and be appointed by the Board from the Independent Non-Executive Directors.

h) If a member of the Committee resigns, dies or for any other reason ceases to be a member with the result that the number of members is reduced to below three, the Board shall, within three months of the event, appoint such number of new members as may be required to make up the minimum number of three members.

2. Authority

a) The Committee is authorised by the Board to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee and all employees are directed to co-operate with any request made by the Committee.

b) The Committee is authorised by the Board to obtain outside legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary.

c) The Committee shall have direct communication channels with the external auditors and person(s) carrying out the internal audit function or activity, if any.

d) The Committee shall promptly report to Bursa Malaysia Securities Bhd of any matter reported by the Audit Committee to the Board of Directors of the Company which has not been satisfactorily resolved resulting in a breach of the Listing Requirements of Bursa Malaysia Securities Bhd.

3. Functions

The functions of the Committee shall be:

a) To review and report to the Board :- with the external auditors the audit plan;- with the external auditors the evaluation of the system of internal accounting controls;- with the external auditors the audit report;- the assistance given by the Company's officers to the external auditors;- the quarterly results and annual financial statements of the Company and Group and thereafter to

submit them to the directors of the Company, particularly on *any change in or implementation of major accounting policies and practices;*significant adjustment arising from the audit;*the going concern assumption; and*compliance with accounting standards and other legal requirements;

- any related party transactions that may arise within the Company or Group.

A U D I T

C O M M I T T E E R E P O R T

32 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

b) To do the following for internal audit:- review the adequacy of the scope, functions and resources of the internal audit function, and that it has

the necessary authority to carry out its work;- review the internal audit programme and results of the internal audit process and where necessary ensure

that appropriate action is taken on the recommendations of the internal audit function;- review any appraisal or assessment of the performance of members of the internal audit function.

c) To consider the appointment, remuneration and resignation of external auditors; and such other functions as may be defined by the Board of Directors.

d) To review the internal audit plan, consider significant findings and management's response and report to the Board together with such other functions as may be agreed to by the Committee and the Board.

4. Attendance at Meeting

a) The Managing Director, the Executive Directors, any other Board Members, General Managers or any other senior executives as may be requested by the Committee and a representative of the external auditors shall normally attend meetings. However, the Committee shall meet with the external auditors at least once a year.

b) Any two members of the Committee present at the meeting shall constitute a quorum which must be made up of the Independent Directors.

c) The Company Secretary shall be Secretary of the Committee.

5. Frequency of Meetings

a) Meetings shall be held not less than two times a year.

b) The external auditors may request a meeting if they consider that one is necessary.

6. Reporting

The agenda will be prepared by the Company Secretary and circulated to the Committee prior to each meeting.

The Company Secretary shall be responsible for keeping minutes of meetings of the Committee and circulating them to all members of the Board.

7. Voting and Proceeding of Meeting

The decision of the Audit Committee shall be by majority of votes and the determination by a majority of the members shall for all purposes be deemed a determination of the Audit Committee. In the case of an equality of votes, the Chairman of the meeting shall have a second or casting vote.

Circular Resolutions signed by all the members shall be valid and effective as if it had been passed at a meeting of the Audit Committee.

A U D I T

C O M M I T T E E R E P O R T

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

33

ANNUAL REPORT 2004

8. Custody, Production and Inspection of Minutes

The minutes of proceedings of the Audit Committee shall be kept by the Company Secretary at the Registered Officeof the Company, and shall be opened to the inspection of any member of the Committee or any member of the Board of Directors.

B) Activities During the Year

The Committee has carried out the following activities during the financial year under review:

i) Discussed and liaised with external auditors on the scope of their audit plan prior to commencement of audit.

ii) Reviewed with the external auditors the results of the audit and recommendation.

iii) Reviewed the statement on Corporate Governance and the statements on internal control for compliance with the Malaysian Code on Corporate Governance and the Listing Requirements respectively recommending the same tothe Board for approval prior to their inclusion in this Annual Report.

C) Attendance of the Audit Committee Meeting

There were four Audit Committee meetings held for the financial year ended 31 March 2004 and the attendance record of each member is as follows:

Audit Committee Members Number of meeting attended Dato’ Dr. Haji Kardin bin Haji Shukor 4/4 Dato’ Haji Mohd Yusoff bin Haji Amin 3/4 En. Ishak bin Yusuf (retired on 26.9.2003) 1/4Mr. Chang Yen Huei 4/4

D) Internal Audit Function

The Company has an internal audit department whose principal responsibility is to conduct periodic audits on internal control matters to ensure their compliance with systems and standard operating procedures in each branch. The main objective of these audits is to provide a reasonable assurance that they operate satisfactorily and effectively. Investigation has also been conducted with regard to various specific areas of concern and high risk areas.

This Statement is made in accordance with a resolution of the Board of Directors dated 30 July 2004.

A U D I T

C O M M I T T E E R E P O R T

34 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Directors’ Report

Report of the Auditors

Balance Sheets

Income Statements

Consolidated Statement of Changes in Equity

Statement of Changes in Equity

Cash Flow Statements

Notes to and forming part of the Financial Statements

Statement by Directors

Statutory Declaration

36 - 40

41

42

43

44

45

46 - 47

48 - 72

73

73

F I N A N C I A L

S T A T E M E N T SF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

35

ANNUAL REPORT 2004

The directors have pleasure in submitting their report and the audited financial statements of the Company and of the Groupfor the financial year ended 31 March 2004.

PRINCIPAL ACTIVITIES

The principal activities of the Company are investment holding and the provision of management services.

The principal activities of the subsidiary companies are indicated in Note 3 to the financial statements.

There have been no significant changes in the nature of these activities during the financial year.

RESULTS

Profit after taxMinority interests

Net profit for the year

DIVIDENDS

Dividends paid or declared by the Company since the end of the previous financial year were as follows:

In respect of the year ended 31 March 2003 as disclosed in the directors’ report of that year.

- First and final dividend of 6% less 28% tax paid on 12 December 2003 RM2,690,323

==========

The directors now recommend a first and final dividend of 6% less 28% tax amounting to RM2,959,355 for the current financial year.

RESERVES AND PROVISIONS

There were no material transfers to or from reserves or provisions during the financial year.

ISSUE OF SHARES AND DEBENTURES

During the financial year, the Company issued 6,227,600 new ordinary shares of RM1 each credited as fully paid-up by wayof a bonus issue on the basis of one new ordinary share of RM1 each for every ten existing ordinary shares held. The bonusissue was effected by way of capitalising an amount of RM6,227,600 from the unappropriated profit account of the Company.The purpose of the bonus issue is to commensurate with the assets employed by the Company.

GroupRM’000

26,96238

-----------27,000

=======

CompanyRM’000

17,001-

-----------17,001

=======

D I R E C T O R S ’

R E P O R TF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

36 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

DIRECTORS

The directors in office since the date of the last report are:

En Md. Kamal bin Bilal

Dato’ (Dr.) Tang Yeam Soon

Dato’ Haji Mohd Yusoff bin Haji Amin

Dato’ Dr. Hj. Kardin bin Hj. Shukor

Mr Lim Gin Chuan

Mr Yeoh Chong Keng

Mr Kam Teh Chung

Mr Chang Yen Huei

Datin Khor Guik Lee

En Ishak bin Yusuf (retired and was not re-elected on 26 September 2003)

In accordance with the Company’s Articles of Association, Dato’ (Dr.) Tang Yeam Soon, Mr Yeoh Chong Keng and Mr Kam TehChung retire by rotation at the forthcoming annual general meeting and, being eligible, offer themselves for re-election.

Dato’ Haji Mohd Yusoff bin Haji Amin, retires at the annual general meeting in accordance with Section 129 of the CompaniesAct, 1965, and, being eligible, offers himself for re-election.

D I R E C T O R S ’

R E P O R TF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

37

ANNUAL REPORT 2004

DIRECTORS’ INTERESTS IN SHARES

According to register of directors’ shareholdings required to be kept under Section 134 of the Companies Act, 1965, none ofthe directors who held office at the end of the financial year, held any shares or had any interests in shares on the Companyand its related corporations during the financial year except as follows:

Dato’ (Dr.) Tang Yeam Soon- direct interest- deemed interest

Dato’ Dr. Hj. Kardin bin Hj. Shukor- direct interest- deemed interest

Mr Kam Teh Chung- direct interest- deemed interest

Mr Chang Yen Huei- direct interest- deemed interest

Datin Khor Guik Lee- direct interest- deemed interest

------ Number of ordinary shares of RM1 each ------

At1-4-2003

2,753,00014,790,000

10,000-

320,869-

1,0002,400,000

1,242,00016,301,000

Bonusissue

275,3001,479,030

1,000-

32,086-

100240,000

124,2001,630,130

Bought

--

--

--

--

--

At31-3-2004

3,028,30016,269,030

11,000-

352,955-

1,1002,640,000

1,366,20017,931,130

Sold

--

--

--

--

--

D I R E C T O R S ’

R E P O R TF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

38 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

DIRECTORS’ BENEFITS

Since the end of the previous financial year, no director of the Company has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directorsshown in the financial statements or the fixed salary of a full time employee of the Company) by reason of a contract made bythe Company or a related corporation with the director or with a firm of which the director is a member, or with a company inwhich the director has a substantial financial interest.

Neither during nor at the end of the financial year was the Company a party to any arrangements whose object is to enablethe directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or anyother body corporate.

OTHER STATUTORY INFORMATION

(a) Before the income statements and balance sheets of the Company and of the Group were made out, the directors took reasonable steps:

(i) to ascertain the action taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and

(ii) to ensure that any current assets which were unlikely to realise in the ordinary course of business their value as shown in the accounting records of the Company and of the Group 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:

(i) which would render the amount written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of the Company and of the Group inadequate to any substantial extent, or

(ii) which would render the values attributed to the current assets in the financial statements of the Company and of the Group misleading, or

(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Company and of the Group misleading or inappropriate.

D I R E C T O R S ’

R E P O R TF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

39

ANNUAL REPORT 2004

(c) At the date of this report, there does not exist:

(i) any charge on the assets of the Company or its subsidiary companies 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 Company or its subsidiary companies which has arisen since the end of the financial year.

(d) No contingent or other liability of the Company or its subsidiary companies has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may affect the ability of the Company or its subsidiary companies to meet their obligations as and when they fall due.

(e) At the date of this report, the directors are not aware of any circumstances, not otherwise dealt with in this report or the financial statements of the Company and of the Group which would render any amount stated in the respective financial statements misleading.

(f) In the opinion of the directors:

(i) the results of the operations of the Company and of the Group for the financial year were not substantially affected byany item, transaction or event of a material and unusual nature; and

(ii) there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely to affect substantially the results of the operations of the Company and of the Group for the financial year in which this report is made.

AUDITORS

The auditors, Moores Rowland, Chartered Accountants, have expressed their willingness to continue in office.

30 July 2004

Signed on behalf of the directors in accordance with a resolution of the directors

DATO’ (DR.) TANG YEAM SOONDirector

CHANG YEN HUEIDirector

D I R E C T O R S ’

R E P O R TF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

40 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

We have audited the financial statements set out on pages 42 to 72. The preparation of the financial statements is the responsibility of the Company’s directors. Our responsibility is to express an opinion on the financial statements based on ouraudit.

We conducted our audit in accordance with approved auditing standards issued by the Malaysian Institute of Accountants.These 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 anddisclosures in the financial statements. An audit also includes an assessment of the accounting principles used and significantestimates made by the directors as well as an evaluation of the overall presentation of the financial statements. We believe ouraudit has provided us with a reasonable basis for our opinion.

In our opinion:

(a) the financial statements have been properly drawn up:

(i) so as to give a true and fair view of the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of the Company and of the Group;

(ii) in accordance with the provisions of the Act so as to give a true and fair view of the state of affairs of the Company and of the Group at 31 March 2004 and of their results and cash flows for the year ended on that date; and

(iii) in accordance with applicable approved accounting standards; and

(b) the accounting and other records and the registers required by the Act to be kept by the Company and by the subsidiaries of which we 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 of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 3 to the financial statements.

We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financialstatements and we have received satisfactory information and explanations required by us for those purposes.

The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and did not include anycomment made under Section 174 (3) of the Act.

30 July 2004

GAN MORN GHUATNo. 1499/5/05 (J)

Partner

MOORES ROWLANDNo. AF: 0539

Chartered Accountants

R E P O R T O F T H E

A U D I T O R ST O T H E M E M B E R S O F T H E S T O R E C O R P O R A T I O N B E R H A D

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

41

ANNUAL REPORT 2004

PROPERTY, PLANT ANDEQUIPMENT

SUBSIDIARY COMPANIESASSOCIATED COMPANYOTHER INVESTMENTSGOODWILL ON ACQUISITIONDEFERRED TAX ASSETS

CURRENT ASSETS

InventoriesTrade and other receivablesAmount owing by subsidiary companiesTax recoverableTime depositsCash and bank balances

Less:CURRENT LIABILITIES

Trade and other payablesAmount owing to subsidiary companiesBorrowingsTax payable

NET CURRENT LIABILITIES

Financed by:

SHARE CAPITALUNAPPROPRIATED PROFIT

SHAREHOLDERS' EQUITYMINORITY INTERESTSLONG TERM AND DEFERRED LIABILITIES

Discount on acquisitionLong term liabilitiesDeferred tax liabilities

Notes to and forming part of the financial statements are set out on pages 48 to 72

234567

Note2004

RM’0002003

RM’000

214,673 -

16,167 2,337

11,193 1,069

201,458 -

15,957 2,332

12,960 -

11,278 203,090

- - - -

11,764 202,894

-- - -

893

10

121,461 50,588

- 7,629

70,035 11,617

------------261,330 ------------

136,605 50,159

- 14,105 2,523

33,305 ------------236,697 ------------

- 11,287

286,306 3,396 -

23 ------------301,012------------

- 11,195

120,864 3,271 - 121

------------135,451 ------------

11312

222,353 -

49,827 4,300

------------276,480

(15,150)------------230,289

=======

226,747 -

24,732 9,685

------------261,164

(24,467)------------208,240

=======

345 323,680 49,455

- ------------373,480

(72,468)------------141,900

=======

347 222,037

- -

------------222,384

(86,933)------------127,725

=======

13

141516

68,504 136,424 ------------204,928

354

12,713 5,298 6,996

25,007 ------------230,289

=======

62,276 118,342 ------------180,618

647

14,528 3,981 8,466

26,975 ------------208,240

=======

68,504 73,236

------------141,740

-

- 160

- 160

------------141,900

=======

62,276 65,153

------------127,429

-

- 296

- 296

------------127,725

=======

Group2004

RM’0002003

RM’000

Company

B A L A N C E

S H E E T SF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

42 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Gross revenue

Cost of sales

Gross profit

Other operating income

Marketing and selling expenses

Administrative and general expenses

Profit from operations

Finance costs

Share of profit in an associated company

Profit before tax

Tax expense- Company and its subsidiaries- Share of tax expense in associated company

Profit after tax

Minority interests

Net profit for the year

Net dividend per share (sen)

Earnings per share (sen)

Notes to and forming part of the financial statements are set out on pages 48 to 72

17

18

19

20

21

1,164,365

(937,441)--------------

226,924

9,266

(128,916)

(68,475)--------------

38,799

(2,599)

1,041 --------------

37,241

(9,622)(657)

--------------26,962

38 --------------

27,000 ========

4.32 ========

39.41 ========

1,137,914

(922,094)--------------

215,820

6,188

(120,332)

(65,510)--------------

36,166

(3,046)

440 --------------

33,560

(12,406)(389)

--------------20,765

131 --------------

20,896 ========

4.32 ========

30.50 ========

26,749

- --------------

26,749

1,693

-

(2,727)--------------

25,715

(1,667)

- --------------

24,048

(7,047)-

--------------17,001

- --------------

17,001 ========

4.32 ========

26,064

- --------------

26,064

95

-

(3,261)--------------

22,898

(485)

- --------------

22,413

(6,540)-

--------------15,873

- --------------

15,873 ========

4.32 ========

Note2004

RM’0002003

RM’000

Group2004

RM’0002003

RM’000

Company

I N C O M E

S T A T E M E N T SF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

43

ANNUAL REPORT 2004

At 1 April 2002

Net profit for the year

Dividend paid- balance brought forward

Proposed first and final dividend of 6% less 28% tax

At 31 March 2003

Bonus issue

Net profit for the year

Dividend paid- balance brought forward

Proposed first and final dividend of 6% less 28% tax

At 31 March 2004

Notes to and forming part of the financial statements are set out on pages 48 to 72

Sharecapital

RM’000Undistributed

RM’000DividendsRM’000

Sub-totalRM’000

TotalRM’000

62,276

-

-

- ------------

62,276

6,228

-

-

- ------------

68,504 =======

97,446

20,896

-

(2,690)------------115,652

(6,228)

27,000

-

(2,959)------------133,465

=======

2,690

-

(2,690)

2,690 ------------

2,690

-

-

(2,690)

2,959 ------------

2,959 =======

100,136

20,896

(2,690)

- ------------118,342

(6,228)

27,000

(2,690)

- ------------136,424

=======

162,412

20,896

(2,690)

- ------------180,618

-

27,000

(2,690)

- ------------204,928

=======

-----Unappropriated profit-----

C O N S O L I D A T E D S T A T E M E N T O F

CHANGES IN EQU I TYF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

44 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

At 1 April 2002

Net profit for the year

Dividend paid- balance brought forward

Proposed first and final dividend of 6% less 28% tax

At 31 March 2003

Bonus issue

Net profit for the year

Dividend paid- balance brought forward

Proposed first and final dividend of 6% less 28% tax

At 31 March 2004

Notes to and forming part of the financial statements are set out on pages 48 to 72

Sharecapital

RM’000Undistributed

RM’000DividendsRM’000

Sub-totalRM’000

TotalRM’000

62,276

-

-

- ------------

62,276

6,228

-

-

- ------------

68,504 =======

49,280

15,873

-

(2,690)------------

62,463

(6,228)

17,001

-

(2,959)------------

70,277 =======

2,690

-

(2,690)

2,690 ------------

2,690

-

-

(2,690)

2,959 ------------

2,959 =======

51,970

15,873

(2,690)

- ------------

65,153

(6,228)

17,001

(2,690)

- ------------

73,236 =======

114,246

15,873

(2,690)

- ------------127,429

-

17,001

(2,690)

- ------------141,740

=======

-----Unappropriated profit-----

S T A T E M E N T O F

CHANGES IN EQU I TYF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

45

ANNUAL REPORT 2004

CASH FLOWS FROM OPERATING ACTIVITIESProfit before tax

Adjustments for:Amortisation of goodwill on acquisitionAmortisation of discount on acquisitionDiscount on acquisition creditedDepreciationProperty, plant and equipment written offLoss/(Gain) on disposal of property, plant

and equipment Profit retained in an associated companyImpairment loss on value of other investmentsAllowance for doubtful debtsBad debts written offDividend incomeInterest incomeInterest expensesHire purchase and finance lease term charges

Operating profit/(loss) before working capital changes

Changes in inventoriesChanges in receivablesChanges in payables

Cash generated from/(utilised in) operations

Interest receivedInterest paidTax paidTax refunded

Net cash from/(used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment Purchase of additional shares in a subsidiary

companyProceeds from disposal of property, plant and

equipment Purchase of other investmentAdvances to subsidiary companiesDividends received from subsidiary companiesDividends received from associated company

Net cash (used in)/from investing activities

Notes to and forming part of the financial statements are set out on pages 48 to 72

37,241

1,767 (1,815)

(59)18,606

7

1 (1,041)

- 44 3

- (1,000)

1,990 609

--------------56,353

15,144 (476)

(14,368)--------------

56,653

1,000 (355)

(11,539)469

--------------46,228

--------------

(26,069)

(196)

142 (5)

- - 174

--------------(25,954)

--------------

33,560

1,832 (1,814)

- 17,268 4,266

225 (440)

1 10

- -

(114)2,768

278 --------------

57,840

(3,193)(7,467)

(252)--------------

46,928

114 (2,768)(8,988)

- --------------

35,286 --------------

(7,634)

-

716 - - - 208

--------------(6,710)

--------------

24,048

- - - 694 -

- - - - -

(25,799)(1,693)

1,635 32

--------------(1,083)

- (92)(15)

--------------(1,190)

1,693 -

(417)469

--------------555

--------------

(208)

(196)

- -

(165,442)18,575

- --------------(147,271)

--------------

22,413

- - - 625

-

(10)- - - -

(25,189)(81)441 43

--------------(1,758)

- (202)

(8,573)--------------

(10,533)

81 (441)(81)

- --------------

(10,974)--------------

(1,644)

-

10 - (494)

18,136 -

--------------16,008

--------------

2004RM’000

2003RM’000

Group2004

RM’0002003

RM’000

Company

C A S H F L O W

S T A T E M E N T SF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

46 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid to shareholders of the CompanyFund raised from commercial paperRepayment of bank term loans Payment of hire purchase and finance

lease instalmentsHire purchase and finance lease term

charges paidAdvances from/(Repayment to) subsidiary companies

Net cash (used in)/from financing activities

NET CHANGES IN CASH AND CASHEQUIVALENTS

CASH AND CASH EQUIVALENTSBROUGHT FORWARD

CASH AND CASH EQUIVALENTSCARRIED FORWARD

Represented by:

TIME DEPOSITS

CASH AND BANK BALANCES

BANK OVERDRAFTS

During the financial year, the Group purchased property, plant and equipment amounting to RM31,971,000 (2003 :RM12,684,000) of which RM5,902,000 (2003 : RM5,050,000) was financed under hire purchase and finance lease and thebalance of RM26,069,000 (2003 : RM7,634,000) was paid by cash.

Notes to and forming part of the financial statements are set out on pages 48 to 72

(2,690)47,820

(14)

(2,963)

(609)-

--------------41,544

--------------

61,818

19,462 --------------

81,280 ========

70,035

11,617

(372)--------------

81,280 ========

(2,690)-

(21,015)

(1,399)

(278)-

--------------(25,382)

--------------

3,194

16,268 --------------

19,462 ========

2,523

33,305

(16,366)--------------

19,462 ========

(2,690)47,820

-

(123)

(32)101,643

--------------146,618

--------------

(98)

121 --------------

23 ========

-

23

- --------------

23 ========

(2,690)-

(10,500)

(113)

(43)(1,379)

--------------(14,725)

--------------

(9,691)

9,812 --------------

121 ========

-

121

- --------------

121 ========

2004RM’000

2003RM’000

Group2004

RM’0002003

RM’000

Company

C A S H F L O W

S T A T E M E N T SF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

47

ANNUAL REPORT 2004

1. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparationThe financial statements comply with applicable approved accounting standards issued or adopted by the Malaysian Accounting Standards Board and the provisions of the Companies Act, 1965.

The measurement bases applied in the preparation of the financial statements include cost, amortised cost, recoverable value, realisable value and fair value as indicated in the accounting policies set out below. Accounting estimates are used in measuring these values.

(b) Subsidiary companies A subsidiary company is a company in which the Company has power to control the financial and operating policies so as to obtain benefits from its activities.

The Company’s interests in subsidiary companies are stated at cost less accumulated impairment loss. The investments are written down when there is an impairment loss on the value of such investments. The impairment loss is charged to the income statement.

(c) Basis of consolidationThe consolidated financial statements include the audited financial statements of the Company and all its subsidiary companies made up to the end of the financial year. All material inter-company transactions are eliminated on consolidation and the consolidated financial statements reflect external transactions only. Unrealised gains on transactions are eliminated in full and unrealised losses are also eliminated in full unless cost cannot be recovered. The financial statements of the subsidiary companies are consolidated on the acquisition method of accounting and the results of the subsidiary companies acquired or disposed of are included in the consolidated financial statements from the date of acquisition or up to the date of disposal.

At the date of acquisition, the fair values of the subsidiary companies’ net assets are determined and these values are reflected in the consolidated financial statements.

(d) Associated companyAssociated company is defined as a company in which the Group holds a long term equity interest, has representation on the board of directors and is in a position to exercise significant influence in its management, but not control, over the financial and operating policies.

Investment in associated company is stated at cost less accumulated impairment loss. The investment is written down when there is an impairment loss on the value of such investment. The impairment loss is charged to the income statement.

The Group’s share of results and reserves of the associated company is accounted for in the consolidated income statement under the equity method of accounting in place of dividends received. On the consolidated balance sheet, the Group’s share of post-acquisition results and reserves of the associated company are added to the cost of investments which reflects the Group’s share of the net assets of the associated company.

The post-acquisition results and reserves of the associated company accounted for are based on its latest audited or management financial statements made up to the end of the financial year.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

48 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

(e) Goodwill or discount on acquisitionThe difference between the acquisition cost and the fair values of attributable net assets acquired is reflected as goodwill or discount on acquisition. Discount on acquisition is retained in the consolidated balance sheet and is credited to the income statement over a period of 10 years. Where goodwill is considered to be capable of generating future economic benefits, it is capitalised in the financial statements and amortised on the straight line basis over a period of 10 years, otherwise, it is written off in the income statement in the year of acquisition. The carrying amount and amortisation period are reviewed annually, and goodwill is written down when its value has deteriorated or when it ceases to have a useful life. The policy for the recognition and the measurement of impairment loss is in accordance with Note 1(m).

(f) Property, plant and equipment

(i) Measurement basis

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss.

(ii) Depreciation

Freehold land is not amortised. Long term leasehold land is amortised over the remaining lease period of between 83 and 938 years.

Depreciation is calculated to write off the cost of other property, plant and equipment on the straight line basis over their expected useful lives at the following annual rates:

BuildingsMachinery and equipmentFurniture, fixtures and fittingsMotor vehiclesRenovations

Capital work-in-progress will only be depreciated when the assets are ready for their intended use.

(g) Assets acquired under hire purchase and finance lease agreementsAssets financed by hire-purchase and finance lease agreements which transfer substantially all the risks and rewards of ownership to the Group, are capitalised as property, plant and equipment and the corresponding obligations are treated as liabilities. On initial recognition, assets acquired by way of hire-purchase and finance leases are stated at an amount equal to the lower of their fair values and the present values of the minimum hire-purchase and finance lease payments at the inception of the hire purchase and leases. The property, plant and equipment capitalised are depreciated on the same basis as owned assets.

In calculating the present value of the minimum hire purchase and finance lease payments, the discount rate is the interest rate implicit in the lease, if this is practicable to determine; if not, the Group’s incremental borrowing rates are used.

(h) Other investmentsOther investments which are held for long term, are stated at cost less accumulated impairment loss. The investments are written down when there is an impairment loss on the value of such investments. The impairment loss is charged to the income statement.

2% - 10%10% - 33 1/3 %

10%10% - 20%5% - 10%

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

49

ANNUAL REPORT 2004

(i) InventoriesInventories are stated at the lower of cost and net realisable value. Cost is determined on the first in first out basis and represents the invoiced cost of goods purchased.

(j) ReceivablesReceivables are stated at their normal values and an allowance is made for any receivables considered to be doubtful of collection. Known bad debts are written off.

(k) PayablesPayables are stated at their nominal values which are the fair values of the consideration to be paid in the future for goods and services received.

(l) BorrowingsBorrowings are initially recognised based on the proceeds received net of all incidental costs incurred. In subsequent periods, borrowings are stated at amortised cost using the effective yield method; any difference between proceeds (net of all incidental costs) and the redemption value is recognised in the income statement over the period of the borrowings.

All interest and other costs incurred in connection with borrowings are expensed as incurred as part of finance costs. Finance costs comprise interest paid and payable on borrowings. The interest components of hire purchase and finance lease payments are charged to the income statement over the hire purchase and finance lease periods so as to give a constant periodic rate of interest on the remaining hire purchase and finance lease liabilities.

(m) Impairment of assetsThe carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If such an indication exists, the recoverable amount of the asset is estimated. The recoverable amount is the higher of an estimated net selling price of the asset and its value in use. Value in use of an asset is measured by discounted future cash flows expected to be generated from continuing use of the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash generating unit to which the asset belongs.

An impairment loss is recognised whenever the carrying amount of an item of asset or the cash generating unit to which it belongs exceeds its recoverable amount. The impairment loss, if any, is charged to the income statement.

Any subsequent increase in recoverable amount of an asset is recognised as reversal of previous impairment loss and should not exceed the carrying amount that would have been determined (net of amortisation or depreciation, if applicable) had no impairment loss been previously recognised for the asset.

(n) Share capitalOrdinary shares are recorded at the nominal values and proceeds in excess of the nominal value of shares issued, if any, are accounted for as share premium. Both ordinary shares and share premium are classified as equity. Cost directly attributable to the issuance of the shares is accounted for as a deduction from share premium, otherwise, it is charged to the income statement.

Dividends on ordinary shares, when declared or proposed by the directors of the Company are disclosed within the components of equity. Upon approval and when paid, such dividends will be accounted for in the shareholders’ equity as an appropriation of unappropriated profit in the financial year in which the dividends are paid.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

50 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

(o) Revenue recognitionRevenue is recognised when it is probable that the economic benefits will flow to the Company and the Group and when the revenue can be measured reliably, on the following bases:

(i) Sale of goods

Sale of goods is recognised when significant risks and rewards of ownership have been transferred to thecustomers.

(ii) Rental income

Rental income is recognised on a time proportion basis over the lease term.

(iii) Concessionary commission

Concessionary commission is recognised on an accrual basis upon sale of concessionary goods.

(iv) Dividend income

Dividend income is recognised when the shareholder’s right to receive payment is established.

(v) Interest income

Interest income is recognised on a time proportion basis taking into account the principal outstanding and the effective interest rate applicable.

(vi) Management fee

Management fee is recognised on an accrual basis when services are rendered.

(p) Employee benefits

(i) Short term benefits

Salaries, wages, allowances, bonuses and social security contributions are recognised as an expense in the financial year in which the services are rendered by the 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 entitlements to future compensated absences, and short term non-accumulating compensated absences such as sick leave are recognised when the absences occur. Non-monetary benefits such as medical care, housing and other staff related expenses are charged to the income statement as and when incurred.

(ii) Defined contribution plan

As required by law, companies in Malaysia make contributions to the Employees Provident Fund (“EPF”). Such contributions are recognised as an expense in the income statement in the financial year to which they relate.

(iii) Termination benefits

Employee termination benefits are recognised only either after an agreement is in place with the appropriate employee representatives specifying the terms of redundancy or after individual employees have been advised of the specific terms.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

51

ANNUAL REPORT 2004

(q) Tax expense The tax expense in the income statement comprises current tax and deferred tax. Current tax is an estimate of tax payable at current tax rate based on profit earned during the year. Deferred taxation is recognised in full, based on the liability method for taxation deferred in respect of all material temporary differences arising from differences between the tax bases of the assets and liabilities and their carrying amounts in the financial statements.

Deferred tax assets are recognised 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 calculated at the tax rate that is expected to apply to the period when the asset is realised or the liability is settled. Current and deferred tax is recognised as an income or an expense and included in the income statement.

The Group adopted the above accounting policy during the financial year under review. In prior years, deferred taxation was provided on the liability method for taxation deferred in respect of all material timing differences except where it was thought reasonably probable that the tax effects of such deferral, will continue in the foreseeable future. Deferred tax benefits were only recognised where there was a reasonable expectation of their realisation. The change in the accounting policy in respect of deferred taxation is not material and, therefore, not adjusted against the unappropriated profit brought forward.

(r) Cash equivalentsCash equivalents comprise time deposits, cash and bank balances, bank overdrafts, and other short term, highly liquid investments that are readily convertible to known amounts of cash, and which are subject to insignificant risk of changes in value.

(s) Rounding of amountsUnless otherwise indicated, the amounts in these financial statements have been rounded to the nearest thousand. The currency used is Ringgit Malaysia (“RM”).

(t) Financial instruments

(i) Financial instruments recognised in balance sheets

The recognised financial instruments of the Group comprise cash and cash equivalents, long term investments, borrowings, receivables and payables as well as ordinary share capital. These financial instruments are recognised when a contractual relationship has been established. All financial instruments are denominated in Ringgit Malaysia, unless otherwise stated. The accounting policies and methods adopted, including the criteria for recognition and the basis of measurement applied, are disclosed above. The information on the extent and nature of these recognised financial instruments, including significant terms and conditions that may affect the amount, timing and certainty of future cash flows are disclosed in the respective notes to the financial statements.

(ii) Financial instruments not recognised in the balance sheets

The Company has provided corporate guarantees in respect of banking facilities granted to subsidiarycompanies which represent present obligations existed at the balance sheet date. The corporate guarantees are not recognised in the financial statements at inception because it is not probable that an outflow of economic benefits will be required to settle the obligations.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

52 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Freeholdland andbuildingsRM’000

114,903---

114,903

11,8112,212

--

14,023

100,880

103,092

2,212

Longleaseholdland andbuildingsRM’000

18,459---

18,459

330195--

525

17,934

18,129

145

MotorvehiclesRM’000

7,878437

(103)-

8,212

6,155972(16)-

7,111

1,101

1,723

886

Machineryand

equipmentRM’000

64,3098,497

(73)(7)

72,726

38,1865,417

(95)(7)

43,501

29,225

26,123

4,916

Furniture,fixtures

andfittings

RM’000

90,8263,021

(67)(19)

93,761

56,4866,196

(6)(17)

62,659

31,102

34,340

5,797

RenovationsRM’000

30,4472,469

(21)(18)

32,877

12,3963,614

(4)(13)

15,993

16,884

18,051

3,312

Capitalwork-in-progressRM’000

-17,547

--

17,547

----

-

17,547

-

-

TotalRM’000

326,82231,971

(264)(44)

358,485

125,36418,606

(121)(37)

143,812

214,673

201,458

17,268

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

53

ANNUAL REPORT 2004

2. PROPERTY, PLANT AND EQUIPMENT

Group

2004

Cost

At 1 AprilAdditionsDisposalsWrite-off

-------------------------------------------------------------------------------------------------------------------------At 31 March

-------------------------------------------------------------------------------------------------------------------------Accumulated

depreciation

At 1 AprilCharge for the yearDisposalsWrite-off

-------------------------------------------------------------------------------------------------------------------------At 31 March

-------------------------------------------------------------------------------------------------------------------------Net book value

at 31 March=====================================================================

2003

Net book valueat 31 March

=====================================================================

Depreciation chargefor the year

=====================================================================

Company

2004

Cost

At 1 AprilAdditionsDisposal

------------------------------------------------------------------------------------------------At 31 March

------------------------------------------------------------------------------------------------Accumulated

depreciation

At 1 AprilCharge for

the year------------------------------------------------------------------------------------------------

At 31 March------------------------------------------------------------------------------------------------

Net book valueat 31 March

=======================================================2003

Net book valueat 31 March

=======================================================Depreciation

charge for the year=======================================================

The net book values of the properties of the Group charged to an appointed security trustee for commercial paper granted to the Company are as follows:

Freehold land and buildingsLong leasehold land

Longleaseholdland andbuildingRM’000

8,500--

8,500

122

170

292

8,208

8,378

122

MotorvehiclesRM’000

875--

875

424

150

574

301

451

150

EquipmentRM’000

1,092188-

1,280

270

128

398

882

822

109

Furniture,fixtures

andfittings

RM’000

1,346--

1,346

199

135

334

1,012

1,147

135

RenovationsRM’000

1,09220

-

1,112

126

111

237

875

966

109

TotalRM’000

12,905208-

13,113

1,141

694

1,835

11,278

11,764

625

2004RM’000

99,3537,788

-----------107,141

=======

2003RM’000

--

----------- -

=======

Group

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

54 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

The net book values of the properties of the Group and the Company charged to licensed banks for banking facilities granted to the Group are as follows:

Freehold land and buildingsLong leasehold land and buildings

The net book values of property, plant and equipment of the Company and the Group acquired under hire purchase and finance lease are as follows:

Motor vehiclesMachinery and equipment

3.SUBSIDIARY COMPANIES

Unquoted shares, at cost

The amount owing by/to the subsidiary companies represents unsecured interest free advances which have no fixed terms of repayment except for an advance to a subsidiary company of RM50 million (2003 : Nil) which earns an effective interest of 4.35% per annum.

Certain unquoted shares of the subsidiary companies with a total carrying value of RM142,151,000 are charged to an appointed security trustee for commercial paper granted to the Company.

2004RM’000

2003RM’000

-8,607

------------8,607

=======

97,55512,208

------------109,763

=======

-8,208

------------8,208

=======

-8,378

------------8,378

=======

Group2004

RM’0002003

RM’000

Company

2004RM’000

2003RM’000

9884,282

----------5,270

======

1,2062,691

----------3,897

======

301-

-------301

====

451-

-------451

====

Group2004

RM’0002003

RM’000

Company

203,090=======

202,894=======

2004RM’000

2003RM’000

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

55

ANNUAL REPORT 2004

The subsidiary companies, all of which are incorporated in Malaysia, are as follows:

The Store (Malaysia) Sdn Bhd

The Store Holdings Sdn Bhd

The Store (Terengganu) Sdn Bhd

Taiping Supermarket Holdings Sdn Bhd

Gold Shopping Centre Holdings Sdn Bhd

Summit Superstore Holdings Sdn Bhd

The Store Properties Sdn Bhd

The Store (Kelantan) Sdn Bhd

The Store Card Sdn Bhd

TS Retail Systems Sdn Bhd

TS Universal Trading Sdn Bhd

Yangtze Corporation Sdn Bhd

*Pacific Hypermarket Group Sdn Bhd

Visual Utama Sdn Bhd

Delsinar Sdn Bhd

Nilai Hikmat Sdn Bhd

The Store (Kemaman) Sdn Bhd

The Store (Seremban) Sdn Bhd

The Store (Kluang) Sdn Bhd

The Store (Muar) Sdn Bhd

The Store (Mentakab) Sdn Bhd

The Store (Taman Tun Aminah) Sdn Bhd

Groupequity interest

Operation of department stores and supermarkets

Investment holding

Investment holding

Property and investment holding

Investment holding

Investment holding

Property investment holding

Investment holding

Provision of strategic incentive marketing solutionsand customers loyalty schemes

IT and computer related services

Importer and distribution of souvenirs and tradingin clothing and general goods

Wholesaling of household and general goods

Investment holding

Investment holding

Investment holding

Investment holding

Inactive

Inactive

Inactive

Inactive

Inactive

Inactive

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

95.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

85.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

2004%

2003%

Principal activities

Subsidiaries of the Company

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

56 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

The Store (Klang) Sdn Bhd

The Store (Central Square) Sdn Bhd

The Store (Kampar Road) Sdn Bhd

The Store (Kuantan Parade) Sdn Bhd

The Store (Bentong) Sdn Bhd

The Store (Subang) Sdn Bhd

The Store (Port Dickson) Sdn Bhd

The Store (Bukit Pasir) Sdn Bhd

The Store (Kangar) Sdn Bhd

The Store (Darul Naim) Sdn Bhd

The Store (Johore Bahru) Sdn Bhd

Tanjung Segi Sdn Bhd

Formyarn Sdn Bhd

Murai Perdana Sdn Bhd

The Store (Malacca) Sdn Bhd

The Store (Batu Pahat) Sdn Bhd

The Store (Pusat K.T.) Sdn Bhd

Taiping Corporation Sdn Bhd

The Store (Taiping) Sdn Bhd

Groupequity interest

Inactive

Inactive

Inactive

Inactive

Inactive

Inactive

Inactive

Inactive

Inactive

Inactive

Investment holding

Property investment holding

Manufacturing, wholesaling and trading in garments and underclothings

Investment holding

Inactive

Inactive

Inactive

Property and investment holding

Inactive

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

67.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

67.0

100.0

100.0

100.0

100.0

100.0

100.0

2004%

2003%

Principal activities

Subsidiaries of the Company

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

Subsidiary companies ofThe Store Holdings Sdn Bhd

Subsidiary company of The Store (Terengganu) Sdn Bhd

Subsidiary companies ofTaiping Supermarket Holdings Sdn Bhd

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

57

ANNUAL REPORT 2004

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

The Store (NS) Sdn Bhd

Arglye Sdn Bhd

The Store (Summit Parade) Sdn Bhd

The Store (Sungai Petani) Sdn Bhd

* Pacific Hypermarket Properties Sdn Bhd

* Bigever Properties Sdn Bhd

* Pacific Hypermarket & Departmental Store Sdn Bhd

The Store (Johor Jaya) Sdn Bhd

Cotler Sdn Bhd

The Store (Taiping Jaya) Sdn Bhd

The Store (Tampin) Sdn Bhd

The Store (Taman Kok Lian) Sdn Bhd

TS Universal Brands Sdn Bhd(Formerly known as The Store (Kulim) Sdn Bhd)

The Store (Kota Bahru) Sdn Bhd

The Store (Shah Alam) Sdn Bhd

Groupequity interest

Inactive

Inactive

Inactive

Inactive

Property investment

Property investment

Investment holding and operation ofdepartment store and hypermarket

Inactive

Trading in clothing and general goods

Inactive

Inactive

Inactive

Inactive

Inactive

Inactive

2004%

2003%

Principal activities

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

92.2

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

92.2

100.0

100.0

100.0

100.0

100.0

100.0

Subsidiary companies of Summit Superstore Holdings Sdn Bhd

Subsidiary company ofThe Store (Kelantan) Sdn Bhd

Subsidiary companies of Pacific Hypermarket Group Sdn Bhd

Subsidiary company of The Store (Johore Bahru) Sdn Bhd

Subsidiary company of Murai Perdana Sdn Bhd

Subsidiary company of Taiping Corporation Sdn Bhd

Subsidiary company of The Store (Taiping) Sdn Bhd

Subsidiary companies of The Store (NS) Sdn Bhd

Subsidiary companies of The Store (Sungai Petani) Sdn Bhd

Subsidiary company ofGold Shopping Centre Holdings Sdn Bhd

58 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

* Pacific Hypermarket Sdn Bhd

* Pacific Department Store Sdn Bhd

* Pacific Hypermarket (Prai) Sdn Bhd

* Pacific Department Store (Prai) Sdn Bhd

* Subsidiary companies not audited by Moores Rowland.

Groupequity interest

Inactive

Inactive

Inactive

Inactive

2004%

2003%

Principal activities

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

4.ASSOCIATED COMPANY

Unquoted shares, at costLess :

Return on capital set-off against cost of investment

Group’s share of post-acquisition profit

Represented by:Attributable share of net assets of associated company

The associated company is Larut Matang Supermarket Holdings Bhd, a company incorporated in Malaysia, in which the Group holds 45.3% (2003 : 45.3%) of the issued and paid-up share capital. The principal activities of the associated company are property and investment holdings and the provision of management services. The associated company is held through Delsinar Sdn Bhd and Nilai Hikmat Sdn Bhd.

5.OTHER INVESTMENTS

Shares quoted in Malaysia, at costLess :

Impairment loss

Unquoted shares, at cost

Market value - quoted shares

2004RM’000

16,114

208-----------15,906

261-----------16,167

=======

16,167=======

2003RM’000

16,114

208-----------15,906

51-----------15,957

=======

15,957=======

Group

Subsidiary companies of PacificHypermarket & DepartmentalStore Sdn Bhd

Group2004

RM’000

9

1----------

82,329

----------2,337

======

8======

2003RM’000

4

1----------

32,329

----------2,332

======

3======

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

59

ANNUAL REPORT 2004

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

6.GOODWILL ON ACQUISITION

At 1 April

Less:Amortisation during the year

At 31 March

7.DEFERRED TAX ASSETS

At 1 AprilTransfer from income statement

At 31 March

The deferred tax assets represent deductible temporary difference on unused tax losses.

At 31 March 2004, the Group and the Company have not recognised deferred tax assets arising from the following temporary differences as it is not probable that future taxable profit will be available against which assets can be utilised.

Unused tax lossesUnabsorbed capital allowancesTaxable temporary differences

between net book value and tax written down value of property, plant and equipment

8. INVENTORIES

Inventories stated at cost comprise:

Trading inventoriesRaw materials

Group2004

RM’000

12,960

1,767-----------11,193

======

2003RM’000

14,792

1,832-----------12,960

======

Group2004

RM’000

-1,069

-------------1,069

=======

2003RM’000

--

------------

======

Group2004

RM’000

5,5702,537

(401)----------

7,706======

2003RM’000

7,3532,689

(556)----------

9,486======

Company2004

RM’000

-370

(319)---------

51=====

2003RM’000

-286

(312)---------

(26)=====

Group2004

RM’000

121,324137

------------121,461

=======

2003RM’000

136,422183

------------136,605

=======

60 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

9. TRADE AND OTHER RECEIVABLES

Gross trade receivablesLess:

Allowance for doubtful debts

Other receivablesDepositsPrepayments

Trade receivables represent amounts receivable from the sale of goods to customers. Other receivables, deposits and prepayments are from the normal business transactions of the Group. All trade receivables are granted credit periods of 30 days.

10. TIME DEPOSITS

The time deposits are placed with licensed banks and earn effective interest rates of between 2.00% and 2.35% (2003 : 4.25%) per annum. All the deposits have maturity periods of less than one year.

In the previous financial year, time deposits amounted to RM661,000 of the Group were pledged to licensed banks for banking facilities granted to the Group.

11. TRADE AND OTHER PAYABLES

Trade payablesOther payables DepositsAccrualsHire purchase liabilities (Note 15)Finance lease liabilities (Note 15)

Trade payables represent amounts outstanding for trade purchases. Other payables, deposits and accruals are from the normal business transactions of the Group. The credit periods granted by trade suppliers are between 7 and 150 days.

Group2004

RM’000

1,613

195----------

1,418

9,77738,3831,010

----------50,588

======

2003RM’000

2,365

151----------

2,214

14,59032,544

811----------50,159

======

Company2004

RM’000

-

-----------

-

51410,773

-----------11,287

======

2003RM’000

-

-----------

-

42210,773

-----------11,195

======

Group2004

RM’000

193,09213,1948,8383,500

5873,142

------------222,353

=======

2003RM’000

206,01710,9832,1085,532

5031,604

------------226,747

=======

Company2004

RM’000

-56-

153136-

----------345

======

2003RM’000

-42

-182123-

----------347

======

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

61

ANNUAL REPORT 2004

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

12. BORROWINGS

Bank borrowings Bankers acceptance- secured- unsecured

Bills payable- secured

Bank overdrafts- secured- unsecured

Current portion of bank term loans (Note 15)

Commercial paper (“CP”) repayable on 9 July 2004

In the previous financial year, the bankers acceptance and bank overdrafts of a subsidiary company were secured by legal charges over certain freehold properties and a debenture incorporating a fixed and floating charge on all the assets of the said subsidiary company. The bills payable of a subsidiary company were secured by legal charges over a leasehold property of the Company. All bank borrowings were guaranteed by the Company.

The above CP was issued on 9 July 2003 at a nominal value of RM50 million and has a maturity period of one year.

The proceeds received from the issue of CP are as follows:

Nominal value of CP

Less:Interest charged

The interest charged is amortised to the income statement over the tenure of the CP and is included as part of finance costs.

The CP is secured by certain properties of the Group referred to in Note 2 and certain unquoted shares in subsidiary companies referred in Note 3 which have been charged in favour of an appointed security trustee for CP.

The effective interest rates of the borrowings are as follows:

Bank overdraftsCommercial paperBankers acceptanceBills payable

RM’000

50,000

2,180----------47,820

======

Group2004

RM’000

--

-

-372-

----------372

49,455----------49,827

======

2003RM’000

6,36039

1,953

15,43892814

----------24,732

-----------24,732

======

Company2004

RM’000

--

-

---

-----------

49,455----------49,455

======

2003RM’000

--

-

---

------------

-----------

======

Group2004

%

8.43 to 8.704.35

--

============

2003%

7.90 to 8.40-

3.00 to 3.603.03 to 3.15

============

Company2004

%

-4.35

--

=======

2003%

----

=======

62 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

13. SHARE CAPITAL

AuthorisedOrdinary shares of RM1 each

Issued and fully paidOrdinary shares of RM1 each

At 1 AprilBonus issue of 1 : 10

At 31 March

During the financial year, the Company issued 6,227,600 new ordinary shares of RM1 each credited as fully paid-up by way of a bonus issue on the basis of one new ordinary share of RM1 each for every ten existing ordinary shares held. The bonus issue was effected by way of capitalising an amount of RM6,227,600 from the unappropriated profit account of the Company. The purpose of the bonus issue is to commensurate with the assets employed by the Company.

14. DISCOUNT ON ACQUISITION

At 1 April

Less:Amortisation during the year

At 31 March

15. LONG TERM LIABILITIES

Hire purchase liabilities

Outstanding hire purchase instalments due:- not later than one year- later than one year and not later than five years

Less:Unexpired term charges

Outstanding principal amount due

Less:Outstanding principal amount due not later than

one year (Note 11)

Outstanding principal amount due later than one year and not later than five years

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

2004Numberof shares

‘000

88,000=========

62,2766,228

----------------68,504

=========

Nominalvalue

RM’000

88,000=========

62,2766,228

---------------68,504

=========

2003Numberof shares

‘000

88,000=========

62,276-

----------------62,276

=========

Nominalvalue

RM’000

88,000=========

62,276-

----------------62,276

=========

Group2004

RM’000

14,528

1,815-------------

12,713=========

2003RM’000

16,342

1,814--------------

14,528========

6501,816

----------2,466

385---------2,081

503

1,578

7181,412

----------2,130

278---------1,852

587

1,265

155168

----------323

27----------

296

136

160

155323

----------478

59----------

419

123

296

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

63

ANNUAL REPORT 2004

Finance lease liabilities

Outstanding finance lease rental due:- not later than one year- later than one year and not later than five years

Less:Unexpired term charges

Outstanding principal amount due

Less:Outstanding principal amount due not later than

one year (Note 11)

Outstanding principal amount due later than one year and not later than five years

Bank term loans

Bank term loans bearing effective interest rate of 8.15% per annum, repayable by 120 monthly instalments commencing January 1993 and June 1994

Less:Repayments due within twelve months (Note 12)

Repayments due after twelve months

The effective interest rates of the hire purchase and finance lease liabilities are between 3.40% and 8.16% (2003: 8.70%) and between 8.43% and 10.41% per annum (2003 : 8.70% and 10.70%) respectively.

The bank term loans of a subsidiary company which were fully repaid during the year, were secured by legal charges over the leasehold properties of the said subsidiary company.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

3,5374,215

----------7,752

577----------

7,175

3,142

4,033

1,8772,617

----------4,494

487----------

4,007

1,604

2,403

--

----------

----------

-

-

-

--

----------

----------

-

-

-

14--------

14

14

---------3,981

=====

----------

-

-

----------5,298

=====

----------

-

-

----------

160=====

----------

-

-

----------

296=====

64 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

16. DEFERRED TAX LIABILITIES

At 1 AprilOverestimated in prior years

Transfer (to)/from income statement

At 31 March

The deferred tax liabilities represent taxable temporary differences between net book value and tax written down value of property, plant and equipment.

17. GROSS REVENUE

Sale of goods net of discounts

Concessionary rental income

Concessionary commission

Dividend income

Management fees

Rental income from properties

Interest income

18. COST OF SALES

Cost of goods sold

Direct operating costs relatingto rental income from properties

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

8,466(615)

----------7,851(855)

----------6,996

======

5,319-

------------5,3193,147

-------------8,466

=======

Group2004

RM’0002003

RM’000

1,160,824

3,268

203

-

-

70

--------------

1,164,365========

1,134,928

2,646

142

-

-

184

14------------

1,137,914=======

-

-

-

25,799

950

-

------------26,749

======

-

-

-

25,189

875

-

------------26,064

======

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

937,379

62------------937,441

=======

922,059

35------------922,094

=======

Group2004

RM’0002003

RM’000

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

65

ANNUAL REPORT 2004

19. PROFIT BEFORE TAX

Profit before tax in statedafter charging:

Allowance for doubtful debtsAmortisation of goodwill on acquisitionAuditors' remuneration- current year- (over)/underestimated in prior yearBad debts written offDepreciationDirectors’ remuneration- Directors of the Company

- fees- other emoluments

- Directors of the subsidiary companies- fees- other emoluments

Finance costs- hire purchase and finance lease term charges- interest expensesImpairment loss on value of other investmentsLoss on disposal of property, plant and equipmentProperty, plant and equipment written offRental of premises

and crediting:

Amortisation of discount on acquisition Discount on acquisition of additional shares in a

subsidiary credited Gross dividends from subsidiary companiesGain on disposal of property, plant and equipmentInterest incomeRental income

20. TAX EXPENSE

Current tax expense- current year- underestimated in prior years

Deferred tax expense relating to origination and reversal of temporary differences

- current year- overestimated in prior years

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

441,767

536(38)

318,606

6001,419

420115

6091,990

-17

37,419======

1,815

59--

1,0005,511

======

101,832

5656

-17,268

6131,309

420278

2782,768

1225

4,26636,159

======

1,814

---114

5,384======

--

35--625

1331,309

--

43441---25

======

-

-25,189

1081

-======

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

--

35--694

1321,419

--

321,635

---16

======

-

-25,799

-1,693

-======

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

11,624537

----------12,161

(1,924)(615)

(2,539)----------

9,622======

9,23029

----------9,259

3,147-

3,147----------12,406

======

7,00047

-----------7,047

- -

-----------

7,047======

6,540-

----------6,540

--

-----------

6,540======

66 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

The numerical reconciliations between the tax expense and the product of accounting profit multiplied by the applicable tax rates are as follows:

Accounting profit (excluding share ofresults in associated companies)

Tax at the average tax rate of 27.93%(2003 : 27.00%) for the Group and the applicable tax rate of 28.00%(2003 : 28.00%) for the Company

Add/(Less):Tax effect of expenses not deductible

in determining taxable profit:Amortisation of goodwill on acquisitionDepreciation of non-qualifying

property, plant and equipmentOther non-deductible expenses

Deferred tax (expense)/incomearising from origination and reversal of temporary differencesnot recognised during the year

Tax effect of temporary differencesarising from controlled transfer ofproperty, plant and equipment

Less:

Tax effects of income not taxable indetermining taxable profit:Amortisation of discount on acquisitionOther non-taxable income

Tax effect of unused tax lossesbrought forward recognised duringthe year

Tax effect of utilisation of unusedtax losses not previously recognised

Add/(Less):

Current tax expense underestimated in prior years

Deferred tax expense overestimatedin prior years

Tax expense for the year

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

36,200======

10,111

493

1,009969

47

-----------12,629

33,120=======

8,942

495

7611,846

(1,391)

3,147-----------13,800

22,413======

6,276

-

10393

68

-----------

6,540

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

24,048=======

6,733

-

11278

77

------------

7,000

507184

1,069

1,169----------

9,700

490729

-

204----------12,377

--

-

----------6,540

--

-

-----------

7,000

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

67

ANNUAL REPORT 2004

537

(615)----------

9,622======

29

-----------12,406

======

-

----------6,540

=====

47

-----------

7,047======

Based on estimated tax credits available and the prevailing tax rate applicable to dividends, the entire unappropriatedprofit of the Company at year end is available for distribution by way of dividends without incurring additional tax liability.

21. EARNINGS PER SHARE

Earnings per share is calculated based on Group profit after tax and minority interests of RM27,000,000 (2003 :RM20,896,000) and on 68,503,602 (2003 : 68,503,602) weighted average number of ordinary shares in issueduring the financial year after adjusting for bonus issue calculated as follows:

Number of ordinary shares at 1 AprilEffect of bonus issue

Weighted average number of ordinary shares

22. EMPLOYEES INFORMATION

Staff costs

Salaries, wages, allowances and bonusesDefined contribution plan - EPF contributionsSocial security contributions - SOCSO

contributionsOther staff related expenses

Included in staff costs of the Group and the Company are executive directors’ remuneration of RM1,387,000 (2003 :RM1,445,000) and RM1,272,000 (2003 : RM1,166,000) respectively which are disclosed in Note 19.

Number of employees at year end

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

62,276,0026,227,600

---------------68,503,602=========

62,276,0026,227,600

---------------68,503,602=========

Group2004 2003

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

67,9807,011

9981,496

----------77,485

======

59,0336,000

8341,401

-----------67,268

======

1,272153

116

----------1,442

======

1,365135

134

----------1,535

======

Group2004 2003

Company2004 2003

5,796======

5,180======

21======

22======

68 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

23. RELATED PARTY TRANSACTIONS

The Company has a controlling related party relationship with its subsidiary companies.

Transaction with a related party during the financial year is as follows:

Management fees from a subsidiary company,The Store (Malaysia) Sdn Bhd

The directors of the Company are of the opinion that the above transaction has been entered into in the normal course of business.

24. CAPITAL COMMITMENT

Approved capital expenditure contracted but not provided for in the financial statementsin respect of property, plant and equipment

25. CONTINGENT LIABILITIES

Unsecured corporate guaranteesin respect of banking and other credit facilities granted tosubsidiary companies

26. SEGMENT ANALYSIS

No segment analysis is prepared as the Group is primarily engaged in retail operations in Malaysia.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

22,828======

1,469======

-======

-======

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

-=====

-=====

950=====

875=====

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

69

ANNUAL REPORT 2004

Group2004

RM’0002003

RM’000

Company2004

RM’0002003

RM’000

-=====

-=====

27,400=======

64,900======

27. FINANCIAL INSTRUMENTS

(a) Financial risk management objectives and policies

The Group’s overall financial risk management objectives are to ensure that the Group creates value and maximises returns to its shareholders.

Financial risk management is carried out through risk reviews, internal controls systems, benchmarking the industry’sbest practices and adherence to the Group’s financial risk management policies.

The Group has been financing its operations mainly through financing from licensed financial institutions and internally generated funds. The Group does not find it necessary to enter into derivative transactions based on itscurrent level of operations.

The main risks arising from the financial instruments of the Group are credit risk, interest rate risk, market risk andliquidity and cashflow risk. The management of the Group monitors its financial position closely with an objective tominimise potential adverse effects on the performance of the Group. The management reviews and agrees on policies for managing each of these risks and they are summarised below. These policies have remained unchangedduring the financial year.

(i) Credit risk

Credit risk arises when sales are made and services are rendered by certain subsidiaries on deferred credit terms and when surplus cash is invested. The Group invests its cash assets safely and profitably by depositing them with licensed financial institutions.

The entire financial assets of the Group are exposed to credit risk except for cash in hand, cash at banks and time deposits which are placed with licensed financial institutions in Malaysia. The management regards credit risk as minimal as most of the Group’s businesses are transacted in cash in the retail branches of the Group. The exposure to credit risk by non-retail subsidiaries is monitored on an ongoing basis. The Group has credit policies in place to manage the credit risk exposure. The risk is managed through the application of credit approvals whereby credit evaluations are performed on all customers requiring credit over a certain amount and period, adherence to credit limits, regular monitoring and follow up procedures. Concentration of credit risk with respect to trade receivables is limited due to a wide spread of customers.

The Group does not require collateral in respect of financial assets and considers the risk of material loss from the non-performance on the part of a financial counter-party to be negligible.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

(ii) Interest rate risk

Interest rate risk is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates.

The Group is exposed to interest rate risk in respect of its time deposits placed with licensed financial institutions, bank borrowings, commercial paper and hire purchase and finance lease liabilities. This risk is managed through the use of fixed and floating interest rate financial instruments. It is the Group’s policy not to trade in interest rate swap agreement.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

70 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Interest rate risk arising from time deposits placements is managed by sourcing for the highest interest rate in the market from amongst licensed financial institutions after taking into account the duration and availability of surplus cash from the Group’s operations.

Interest rate risk arising from bank borrowings is subject to floating interest rates with the interest rates spread above the bank’s base lending rate agreed before the facilities are accepted.

The Group considers interest rate risk arising from the commercial paper, hire purchase and finance lease financing to be insignificant as the interest rates are fixed at inception and they have fixed repayment terms.

The effective interest rates for the interest earning financial assets and interest bearing financial liabilities at balance sheet date are disclosed in the respective notes to the financial statements.

(iii) Market risk

The Group is exposed to market risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market prices.

The Group’s exposure to market risk arises from changes in market price of its quoted investments. The management intends to hold the quoted investments for long term strategic purposes, thus any short term unfavourable changes in market price has minimal impact to the Group.

(iv) Liquidity and cash flow risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit lines available.

The Group’s exposure to liquidity and cash flow risk is monitored on an ongoing basis. The concentration of liquidity and cash flow risk in respect of bank borrowings, commercial paper, hire purchase and finance lease liabilities are minimal as the Group maintains sufficient cash to meet these liabilities.

(b) Fair values

The carrying amounts of the financial assets and liabilities of the Company and the Group at 31 March 2004 approximated their fair values except as stated below:

Other investmentsUnquoted shares

BorrowingsCommercial paper

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

GroupCarryingamountRM’000

Fair value

RM’000

CompanyCarryingamountRM’000

FairValue

RM’000

2,329

49,455======

*

**======

-

49,455======

-

**======

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

71

ANNUAL REPORT 2004

* It is not practicable to estimate the fair value of unquoted shares without incurring excessive costs. The investment is carried at its original cost in the balance sheet and subject to review for impairment. At year end, the net tangible assets value of the investment based on the audited financial statements of the investee company was RM2,886,000.

** It is not practicable to estimate the fair value of commercial paper (“CP”) due to the uniqueness of the CP and unavailability of market prices for the same or similar CP. The CP is carried at its carrying amount in the balance sheet.

28. AUTHORISATION FOR ISSUE OF FINANCIAL STATEMENTS

The financial statements of the Company and of the Group were authorised for issue by the directors on 30 July 2004.

NOTES TO AND FORMING PART OF THE

FINANCIAL STATEMENTSF O R T H E Y E A R E N D E D 3 1 M A R C H 2 0 0 4

72 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

STATEMENT OF DIRECTORS AND

STATUTORY DECLARATIONSTATEMENT BY DIRECTORS

In the opinion of the directors, the financial statements set out on pages 42 to 72 are drawn up:

(a) so as to give a true and fair view of the state of affairs of the Company and of the Group at 31 March 2004 and of their results and cash flows for the year then ended; and

(b) in accordance with applicable approved accounting standards and the provisions of the Companies Act, 1965.

Signed on behalf of the directors in accordance with resolution of the directors

DATO’ (DR.) TANG YEAM SOON CHANG YEN HUEIDirector Director

30 July 2004

STATUTORY DECLARATION

I, Chang Yen Huei, being the director primarily responsible for the financial management of The Store Corporation Berhad, dosolemnly and sincerely declare that to the best of my knowledge and belief, the financial statements set out on pages 42 to 72are correct.

And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the StatutoryDeclarations Act, 1960.

Subscribed and solemnly declared at )Kuala Lumpur in the Federal Territory )this 30 day of July 2004. ) CHANG YEN HUEI

Before me:

Commissioner for Oaths

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

73

ANNUAL REPORT 2004

L I S T O F

PROPERTIES

The Store Corporation BhdQ.T.(R) 6366 L.O. Lot 9A, Jalan 223Petaling Jaya, Selangor

The Store Holdings Sdn BhdHS(D) 55098 & 55099 NPT 4 & 5, Sek 91A & 91B Town of Kuala Lumpur

The Store Holdings Sdn BhdHS(D) 12086 & 12087 PTD 2484 & 2485Mukim Bandar Penggaram Batu Pahat, Johor.46, 46A, 46B, 48, 48A & 48BJalan Megat, Batu Pahat

Tanjung Segi Sdn BhdLot No.196,197, 198,199,200, 201,336Bandar KB VIII, Melaka

The Store (Malacca) Sdn BhdLots. Nos. A3/w-1,A3/w-2,A3/w-3,and A3/w-4, Rumah PangsaSeri Kubu, Melaka

The Store (Sungai Petani) Sdn BhdLot 117, 118, 139, 143, 144, 1331 and1332 Central District of Province Wellesley

The Store (Sungai Petani) Sdn BhdLot 0048, Section 46 Pajakan Negeri 393 Bandar Sungei PetaniKuala Muda Mukim Sungai Pertani

The Store (Malaysia) Sdn BhdLot 710 Section 4 Town of Bukit Mertajam Province Wellesley Centre

The Store (Terengganu) Sdn BhdGrant 3719, Lot 976 & Grant 3720, Lot 977 Bandar Kuala Terengganu

The Store (Terengganu) Sdn BhdGrant 9989, Lot 3643 Kuala Terengganu

Taiping Supermarket Holdings S/BLot No.1987- 1990 Bandar Taping, Tempat Taiping, Daerah Larut & Matang

Taiping Corporation Sdn BhdLot 70, 71 & 72 in Mukim of Tampin, Tampin

Industrial Land witha double strorey office

cum warehouse

1 unit apartment /rented to third

parties

3-storey shophouse/ hostel

Vacant Land /Car Park

4 units of apartment/ staff hostel

Vacant Land

4-storey shophouse/ staff hostel

2-storey pre-warshophouse /

rented to third parties

Vacant Land /Car Park

Vacant Land /Car Park

4-storey shophousecomplex / business

operation

4-storey shophousecomplex /business

operation

-

9

12

-

9

-

18

71

-

-

26

23

Leasehold 99 years

(28.4.2071)

Freehold

Freehold

Leasehold99 years

(13.1.2091)

Freehold

Freehold

Leasehold99 years

(2.10.2080)

Leasehold999 years(5.2.2930)

Freehold

Freehold

Freehold

Freehold

65,340 sq ft(32,000 sq ft)

959 sq. ft.

3,738 sq. ft. (9,240 sq. ft.)

95,104 sq. ft.

3,400 sq. ft.

234,945 sq. ft

1,400 sq. ft.(5,300 sq. ft.)

9,502 sq. ft. (19,000 sq. ft.)

49,080 sq. ft.

915 sq. ft.

6,859 sq. ft. (24,130 sq. ft.)

7,200 sq. ft.(24,130 sq.ft.)

2-11-2001 (A)

4-4-1991 (A)

2-2-1993 (A)

14-1-1992(A)

3-6-1993 (A)

28-9-1987 (A)

22-7-1992 (A)

23-02-1976 (A)

18-4-1992 (A)

1-4-1993 (A)

24-6-1982 (A)

6-3-1981 (A)

8,209

79

470

7,788

207

206

292

233

1,758

94

2,666

917

Registered Owner/Location Description / Existing Use

Approx. age of

buildings(Years)

Tenure(years ofexpiry)

Land Area(Built-up

area)

Date ofAcquisition

(A) /Valuation (V)

NBVYE2004RM’000

74 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Vacant Land

2-storey linkhouse/ warehouse and

hostel

3 storey shophouse/rented to third

parties

2 units of 3-storeyshophouse / staffhostel and rented

to 3rd party

Double storeyShophouse /

Vacant

Commerial unitswithin a

5-commercial centre/ business

operation

Commerial unitswithin a

5-commercial centre/ business

operation

11/2 storey terracefactory / business

operation

2-storey shophouse/ office and warehouse

-

19

24

9

10

7

7

4

28

Leasehold999 years

(19.11.2895)

Leasehold 99 years

(13.11.2080)

Freehold

Freehold

Freehold

Freehold

Freehold

Leasehold(99 years) (6.3.2101)

Leasehold99 years

(9.8.2075)

6,767 sq. ft.

3,522 sq. ft.(4,044 sq. ft.)

2,800 sq. ft.(8,400 sq. ft.)

3,200 sq. ft.(9,400 sq. ft.)

3,417 sq. ft.(9,240 sq. ft.)

198,706 sq. ft.

111,640 sq ft

4,200 sq. ft.

1,195 sq. ft.(2,400 sq. ft.)

-1983- (A)

- 1983 -(A)

17-8-1994 (A)

13-3-1997 (A)

25-2-1998 (A)

10-1-1998 (A)

10-1-1998 (A)

29-2-2000 (A)

23-12-1993 (A)

192

203

541

566

396

59,802

33,177

571

398

Registered Owner/Location Description / Existing Use

Approx. age of

buildings(Years)

Tenure(years ofexpiry)

Land Area(Built-up

area)

Date ofAcquisition

(A) /Valuation (V)

NBVYE2004RM’000

Taiping Corporation Sdn BhdLot 6619, Mukim Azam Kumbang,Daerah Larut Matang, Taiping

Taiping Corporation Sdn BhdLot 2951 & 2952 Town of Taiping 31 & 32, Jalan Convent, Taiping

The Store Properties Sdn BhdH.S. (D) 29489, Lot No. 1439H.S. (D) 29491, Lot No. 1440Bandar Bukit Mertajam, Sek 5,Daerah Seberang Prai TengahNegeri Pulau Pinang

The Store Properties Sdn BhdHS(D) 9730 & 9731 PT No. 7227 & 7228. Bandar Mentakab, Temerloh, Pahang

Pacific Hypermarket Properties S/BNo.1497, Jalan Wangka, Taman Semarak14000 Bukit Mertajam

Pacific Hypermarket Properties S/BParcel B888, Basement Floor, Megamal, Jalan Baru Prai, Mukim 1, Province Wellesley Central, Penang

Bigever Properties Sdn BhdParcel G888 & 1888, Ground & First FloorMegamal, Jalan Baru Prai, Mukim 1, Province Wellesley Central, Penang

Yangtze Corporation Sdn BhdLot No.11 Block 2 Type B,Kepong Light IndustryMukim Batu, District & State of Wilayah

Formyarn Sdn BhdNo. 150 & 152 Lot 25168 & 25169Batu 7 3/4, Jalan Kepong, Kuala Lumpur

L I S T O F

PROPERTIES

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

75

ANNUAL REPORT 2004

Authorised Capital : RM88,000,000Issued & Paid-Up Capital : RM68,503,602Class of Shares : Ordinary Shares of RM1.00 eachVoting Rights : One Vote per Ordinary Share

DISTRIBUTION OF SHAREHOLDINGS

Holdings

Less than 100 shares100 to 1,0001,001 to 10,00010,001 to 100,000100,001 to less than 5% of issued shares5% and above of issued shares

TOTAL

SUBSTANTIAL SHAREHOLDERS

DIRECTORS’ SHAREHOLDINGS

Dato’ (Dr.) Tang Yeam SoonMr Kam Teh ChungMr Chang Yen HueiDatin Khor Guik Lee Dato’ Dr. Haji Kardin bin Haji Shukor

% No. of Shares

% Total Holdings %No. of Holders

0.703.48

85.867.931.870.16

---------100

=====

95044,610

4,942,0615,338,411

41,611,57016,566,000

-------------------68,503,602

===========

0.010.077.217.79

60.7424.18-------

100====

1889

2,199203484

--------------2,561

========

% Deemed interest % Direct Interest

4.420.520.001.990.02

16,269,030-

2,640,00017,931,130

-

23.75-

3.8526.17

-

3,028,300352,955

1,1001,366,200

11,000

Name of Substantial Shareholders

28.1719,297,330Dato’ (Dr.) Tang Yeam Soon (direct and deemed)

21.7514,902,830Equatorial Century Sdn Bhd (direct)

28.1719,297,330Datin Khor Guik Lee (direct and deemed)

12.568,603,100Tan Sri Dato' Seri Tan Chee Yioun (direct and deemed)

5.743,934,700

1.

2.

3.

4.

5. Berjaya VTCY Sdn Bhd (direct)

A N A L Y S I S O F

SHAREHOLDINGSA S A T 9 A U G U S T 2 0 0 4

76 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

Name of Shareholders

1. RHB Capital Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Equatorial Century Sdn Bhd

2. KAF Nominees (Tempatan) Sdn Bhd - Pledged securities acc for Equatorial Century Sdn Bhd

3. EB Nominees (Tempatan) Sendirian Berhad- Pledged securities acc for Equatorial Century Sdn Bhd

4. Berjaya VTCY Sdn Bhd

5. Surplus-ED Capital Sdn Bhd

6. HDM Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Amlied Holdings Sdn Bhd

7. Berjaya General Insurance Berhad

8. Mayban Nominees (Tempatan) Sdn Bhd- Pledged securities acc for BBC Capital Sdn Bhd

9. Mayfin Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Tang Yeam Soon

10. EB Nominees (Tempatan) Sendirian Berhad- Pledged securities acc for Advance Ultimate Sdn Bhd

11. Southern Finance Berhad- Pledged securities acc for Vincent Tan Chee Yioun

12. HDM Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Perspektif Bakti Sdn Bhd

13. Employees Provident Fund Board

14. HDM Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Pan Prosperity Holdings Sdn Bhd

15. Mayfin Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Nusraya Holdings Sdn Bhd

No. of Shares

4,400,000

4,389,000

4,200,000

3,577,000

3,411,400

3,190,000

2,659,800

2,329,210

2,024,000

2,000,000

1,898,600

1,566,290

1,379,950

1,376,500

1,372,800

%

6.42

6.41

6.13

5.22

4.98

4.66

3.88

3.40

2.95

2.92

2.77

2.29

2.01

2.01

2.00

L I S T O F T H I R T Y

LARGEST SHAREHOLDERSA S A T 9 A U G U S T 2 0 0 4

THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

77

ANNUAL REPORT 2004

L I S T O F T H I R T Y

LARGEST SHAREHOLDERSA S A T 9 A U G U S T 2 0 0 4

Name of Shareholders

16. Mayfin Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Khor Guet Lin

17. Mayban Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Azam Spektrum Sdn Bhd

18. Mayfin Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Khor Guik Lee

19. Mayban Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Pancaran Kurnia Sdn Bhd

20. Yap Yan Chuan

21. Bumiputra-Commerce Nominees (Tempatan) Sdn Bhd - Bumiputra-Commerce Trustee Berhad for Pacific Dana Aman

22. Cartaban Nominees (Asing) Sdn Bhd- Bank of Tokyo Mitsubishi Luxembourg S.A. for Osterreichische

Volksbanken AG

23. Southern Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Equatorial Century Sdn Bhd

24. Equatorial Century Sdn Bhd

25. Southern Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Tang Yeam Soon

26. Tan Soi Chew

27. Advance Ultimate Sdn Bhd

28. Pan Prosperity Holdings Sdn Bhd

29. Public Nominees (Tempatan) Sdn Bhd- Pledged securities acc for Surinder Singh a/l Wassan Singh

30. Wong Yee Choo

TOTAL

No. of Shares

1,367,300

1,332,900

1,329,900

1,288,600

1,129,630

1,018,240

1,000,000

964,700

949,130

795,300

715,667

640,000

582,050

565,400

486,200

----------------53,939,567

==========

%

2.00

1.95

1.94

1.88

1.65

1.49

1.46

1.41

1.39

1.16

1.04

0.93

0.85

0.83

0.71

---------78.74

=====

78 THE STORE CORPORATION BERHAD 252670-P( I N C O R P O R A T E D I N M A L A Y S I A )

THE STORE CORPORATION BERHAD(Incorporated In Malaysia)

(252670-P)

I /We of

be ing a member/members o f THE STORE CORPORATION BERHAD (252670-P ) , hereby appoin t

Mr/Ms:

of

or failing him/her, the Chairman of the Meeting, to vote for me/us and on my/our behalf at the Twelfth Annual GeneralMeeting of the Company to be held at Starhill 1, Level 4, JW Marriott Hotel, 183, Jalan Bukit Bintang, 55100 Kuala Lumpuron Friday, 24 September 2004 at 10.00 a.m. or at any adjournment thereof, and to vote as indicated below :

Please indicate with an 'X' in the space below how you wish your votes to be cast. (If you do not do so, your Proxy will voteor abstain from voting at his/her discretion).

As witness my/our hands this _________ day of _______ 2004.

____________________________________Signature/common seal of shareholder (s)

Notes:1) 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 member may

appoint more than one proxy to attend the same meeting. Where a member appoints two or more proxies, he shall specify the proportion of his shareholdings to be represented by each proxy.

2) A proxy need not be a member of the Company.

3) If the appointer is a Corporation, the form must be under its Common Seal or under the hand of an officer or attorney duly authorized.

4) The instrument appointing a proxy must be deposited at the Company’s Registered Office not less than 48 hours before the time appointed for holding the meeting.

No. of Ordinary Shares Held:

RESOLUTION

1. Adoption of Audited Financial Statements

2. First and Final Dividend

3. Directors’ Fees

4. Re-election of Dato’(Dr.) Tang Yeam Soon

5. Re-election of Kam Teh Chung

6. Re-election of Yeoh Chong Keng

7. Re-election of Dato’ Haji Mohd Yusoff bin Haji Amin under Section 129 (6) of the Companies Act, 1965

8. To re-appoint Moores Rowland

9. Authority under Section 132D of the Companies Act, 1965

10. Renewal of shareholders’ mandate for Share Buyback

FOR AGAINST

P R O X Y F O R M

Stamp

The Company Secretary

THE STORE CORPORATION BERHADWisma Selangor Dredging,

6th Floor, South Block, 142-A, Jalan Ampang,50450 Kuala Lumpur

FIRST FOLD

SECOND FOLD