2003 - KNM Steel Sdn Bhd

KNM GROUP BERHAD (521348-H)DIRECTORS’ REPORTSIGNIFICANT EVENTS DURING THE YEARIn conjunction with, and as an integral part of the listing and quotation of the entire issued and paid-up share capitalof the Company on the Second Board of the Bursa Malaysia Securities Berhad, the Company undertook a restructuringscheme.For details, refer to Note 23 to the financial statements.SIGNIFICANT EVENTS SUBSEQUENT TO THE BALANCE SHEET DATEOn 27 February 2004, the Company proposed to undertake the following proposals:(i) Proposed Private Placement of up to 5,060,000 new ordinary shares of RM1.00 each, representing up to 10%of the issued and paid-up share capital of the Company at an issue price of RM3.50 each.(ii)(iii)(iv)Proposed Bonus Issue of up to 27,830,000 new ordinary share of RM1.00 each, on the basis of one (1) newordinary share of RM1.00 each for every two (2) existing ordinary shares of RM1.00 each.Proposed Share Split of one (1) existing ordinary shares of RM1.00 each into two (2) new ordinary shares ofRM0.50 each.Proposed Employees’ Share Option Scheme for eligible employees and Directors of the Company and itssubsidiaries (“ESOS”), not exceeding 15% of issued and paid up capital of the Company at any one time.(v) Proposed increase in the authorised share capital of the Company from RM50,000,000 comprising 50,000,000ordinary shares of RM1.00 each to RM200,000,000 comprising 400,000,000 ordinary shares of RM0.50each.OTHER STATUTORY INFORMATIONBefore the financial statements of the Group and of the Company were made out, the Directors took reasonable stepsto ascertain that:(i)(ii)all known bad debts have been written off and adequate provision made for doubtful debts, andall current assets have been stated at the lower of cost and net realisable value.At the date of this report, the Directors are not aware of any circumstances:(i)(ii)(iii)(iv)that would render the amount written off for bad debts, or the amount of the provision for doubtful debts, in theGroup and in the Company inadequate to any substantial extent, orthat would render the value attributed to the current assets in the Group and in the Company financial statementsmisleading, orwhich have arisen which render adherence to the existing method of valuation of assets or liabilities of theGroup and of the Company misleading or inappropriate, ornot otherwise dealt with in this report or the financial statements, that would render any amount stated in thefinancial statements of the Group and of the Company misleading.282003 ANNUAL REPORT