2003 - KNM Steel Sdn Bhd

KNM GROUP BERHAD (521348-H)DIRECTORS’ REPORTBy virtue of their interests in the Company, Dato’ Abdul Rani bin Mohd. Razalli, Lee Swee Eng, Sofiyan bin Yahya, GanSiew Liat and Chew Fook Sin are also deemed to have interests in the subsidiaries during the financial year to theextent that the Company has an interest.None of the other Directors holding office at 31 December 2003 had any interest in the ordinary shares of theCompany and of its related corporations during the financial year.DIRECTORS’ BENEFITSSince the end of the previous financial year, no Director of the Company has received nor become entitled to receiveany benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable bycertain Directors as shown in the financial statements or the fixed salaries of full time employees of the Company or ofrelated corporations) by reason of a contract made by the Company or a related corporation with the Director or witha firm of which the Director is a member, or with a corporation in which the Director has a substantial financial interest,other than as disclosed in Note 21 to the financial statements.There were no arrangements during and at the end of the financial year which had the object of enabling Directors ofthe Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any otherbody corporate.ISSUE OF SHARES AND DEBENTURESDuring the financial year, the Company:(i)(ii)(iii)(iv)(v)increased its authorised share capital from RM100,000 comprising 100,000 ordinary shares of RM1.00 eachto RM50,000,000 comprising 50,000,000 ordinary shares of RM1.00 each by the creation of an additional49,900,000 ordinary shares of RM1.00 each.issued 28,253,182 new ordinary shares of RM1.00 each at an issue price of RM1.21 per share for the acquisitionof the entire issued and paid-up share capital of KNM Process Systems Sdn. Bhd. comprising 5,000,000ordinary shares of RM1.00 each for a purchase consideration of RM34,186,350.issued 4,666,816 new ordinary shares of RM1.00 each at an issue price of RM1.00 per share for cash pursuantto the rights issue to shareholders who were registered with the Company on 18 June 2003, in proportion ofapproximately 165 new ordinary shares for every 1,000 ordinary shares then held.issued 4,400,000 new ordinary shares of RM1.00 each at an issue price of RM1.48 per share for cash pursuantto a private placement.issued 6,680,000 new ordinary shares of RM1.00 each at an issue price of RM1.48 per share for cash pursuantto a public issue.There were no other changes in the issued and paid-up share capital of the Company during the financial year.OPTIONS GRANTED OVER UNISSUED SHARESNo options were granted to any person to take up unissued shares of the Company during the year.2003 ANNUAL REPORT27