Case 5 Mohani Abdul.pdf - Universiti Putra Malaysia

Keretapi Tanah Melayu Bhdthe Group turnover declined from RM382 million in 2001 to RM364 millionin 2002”. He also added that the operating revenue was expected to decreaselargely due to the loss from freight services during the construction period ofthe Rawang-Ipoh Double Tracking Project. Losses from railway operations wereexpected to increase mainly due to the reestablishment of deferred maintenanceof rolling stock and railway infrastructure. KTMB was facing funding shortfallas a result of deferred operating expenditure in addition to loan repayments andcapital expenditure. En. Azman Shaharbi also explained that KTMB remainedseverely undercapitalized and over-leveraged. Revenue was recognized whenit was probable that the economic benefits associated with the transaction wouldflow to the enterprise and the amount of the revenue could be measured reliably.Table 2 depicts the revenues for the financial years 1998 up to 2002 forIntercity Passenger Services, Freight Services, Property and Commuter TrainServices; while Table 3 depicts the volume of freight handled by KTMB for thesefinancial years.Table 2 Revenue Analysis by Strategic Business Units (RM Million)Financial Year Intercity Freight Property Commuter2002 68.36 97.16 31.5 49.762001 72.16 101.9 30.41 45.682000 75.34 94.76 42.2 39.451999 78.2 75.15 28.36 38.911998 83.21 71.83 32.38 41.61Source: KTMB Annual Report Year 2002.Table 3 Volume of Freight Handled by KTMB (Million tonne)Financial YearVolume of Freight2002 3.82001 4.152000 5.481999 4.491998 4.35Source: KTMB Annual Report Year 2002.En. Mohd. Salleh further questioned, “Why did the Group’s turnover declinefrom RM382 million in 2001 to RM364 million in 2002?” He was a bit surprisedwhen he saw the accounts which were handed by En. Azman Shaharbi (Revenueat the Group and the Company level is shown in Table 4).169