Annual Report of Ktb Konsortium Transnasional Berhad

ANNUAL REPORT OF KTB KONSORTIUM TRANSNASIONAL BERHAD

FINANCIAL ACCOUNTING AND REPORTING 2

EAB 20703

GROUP 72B

BACKGROUND OF THE COMPANY

KONSORTIUM TRANSNASIONAL BERHAD (KTB) made its debut on Bursa Malaysia on 15 June 2007 engages primarily in the bus transportation system comprising stage and express bus operations within Peninsular Malaysia.Konsortium Transnasional Berhad (KTB) is principally involved in investment holding. The Company, along with its subsidiaries, is engaged in the provision of public bus transportation comprising stage and express bus operations within Peninsular Malaysia. The Company operates in two segments.First is the public transportation services that is engaged in the provision of stage and express bus services across Peninsular Malaysia. Secondly,trading of vehicles that consist of through its subsidiary, PT Indonadi, is involved in the activity of trading of buses in Indonesia. The public transportation services segment includes revenue from the rental and charter of buses to third parties. Some of its wholly owned subsidiaries include Syarikat Kenderaan Melayu Kelantan Berhad, Syarikat Tanjung Keramat Temerloh Omnibus Berhad, Kenderaan Langkasuka Sdn. Bhd., Kenderaan Klang Banting Berhad, Kenderaan Labu Sendayan Sdn. Bhd., Starise Sdn. Bhd. and Syarikat Rembau Tampin Sdn. Bhd.The stage and express bus operations provide the most extensive coverage throughout Peninsular Malaysia, covering almost all major cities and towns as well as Singapore. The nationwide network is serviced by a fleet of more than 1,500 buses that covers more than 250 routes, generating more than 1,000 trips daily and this translates to around 60 million passengers a year.To date, KTB commands the largest market share, with ‘Transnasional’ being the leader in the express bus industry in Peninsular Malaysia. Besides ‘Transnasional’, KTB also operates ‘Cityliner’ stage buses, ‘Plusliner’ economy express buses and luxury bus services under the ‘Nice’ brand.

KTB STRUCTURE 

KTB structure have 4. There are transnasional, plusliner, nice and the cityliner. These four busess have in all states in malaysia. KTB starts their business with the one busess called as transnasional is their first brand and then when the time passes by the KTB starts to adopted 3 busses that can be choose by passengers. This three busess that is transnasional, plusliner and nice is the take a journey to another state to another state and the other one bus called as cityliner is the bus services that provide services to the people to go to the town or the other places in the state.These four busess have different services and different style which is more comfortable,more exclusive and more high class.

Firstly for the Transnasional bus as part of cost reduction and fleet availability improvement exercise, all new “Transnasional” buses are under the repair and maintenance contract with the original chassis manufacturer. A similar contract was also signed with three third party contractors for the existing buses. For all regions, buses with higher seating capacity like the 41-seater single-deck “Club Class” and the 69-seater double-deck “Skyview” were introduced towards the end of 2007 to mitigate the rising costs of operations. The biggest cost component is still the fuel cost. Due to the fact that CNG cost is still cheaper than diesel, 74 CNG buses designed specifically for express type operations are planned to be on the road by the end of 2008. These buses will be deployed mostly in the “Transnasional – Southern Region” in view of the potential availability of CNG’s refueling infrastructure. For Western Region, by relocating their main depot from Kuala Lumpur to Kajang in July 2007, it has helped to reduce some costs associated with it.In terms of safety, all new “Transnasional” buses met the European ECE R66 safety regulations on roof crash standards and equipped with front row seat belts since 2005. For passengers convenience, “Transnasional” tickets can be purchased 60 days ahead of departure time from 170 agents nationwide whose 42 of them are Petronas fuel station operators.In terms of product innovation, the new 2007 version of e-ticketing for “Transnasional” is able to place a passenger who prefers to sit beside his/her own gender. “Transnasional” is still the first and only bus operator to introduce adjustable headrest for its newly launched economy express 41-seater single-deck “Club Class” coach. Again “Transnasional” is the first in the country to introduce a high capacity economy express with its 69-seater double-deck “Skyview”. Not only it can carry more passengers, its “twin-configuration” seats can be separated to create more shoulder room for each and every passenger on board. The 24-tonne tri-axle coach with its unique design has taken into consideration all safety aspects for example, an emergency door on the upper deck that is in-line with the hidden ladder placed at the bottom deck, two escape hatches on the roof, a tapered roof design for greater stability, rear entry staircase, and seat belts for certain rows. The 12 units of new “Transnasional Skyview” now serve large number of passengers from Kota Bharu, Kuala Terengganu and Melaka to Kuala Lumpur. This will soon cover Johor Bharu, Butterworth and Alor Setar when additional “Skyview” buses are expected to be ready by August 2008.