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The companies in the Group are in its final stages or have completed assessment, testing and implementation of critical systems supporting the respective businesses.
The YTL Power International Berhad Group, to the best of its knowledge and belief, is now operating in a Y2K ready environment for its primary financial and business systems in particular the power stations. Its equipment vendors of the power stations have confirmed the Y2K readiness of such equipment.. The Group incurred minimal cost to achieve the Y2K ready environment as costs have been borne by the equipment vendors.
The YTL Cement Berhad Group is in its final stages of addressing the Y2K readiness in certain of its companies and have, barring unforeseen circumstances, taken the necessary steps to be Y2K ready by 30 September 1999. The cement plant of the Group has been confirmed by third party vendors of its Y2K readiness and to the best of its knowledge and belief, it is operating in a Y2K ready environment. This Group's estimated cost to achieve the Y2K readiness environment is estimated at RM300,000.00
In respect of other companies within the YTL Corporation Berhad Group, critical business systems which are not compliant are largely in the closing stages. Consultation with the respective vendors of business systems are being carried out to seek assurances from such third parties. These companies are expected to complete the testing, replacement and verification of their critical business systems by 30 September 1999. The estimated cost to achieve the Y2K readiness environment is estimated at RM500,000.00
However, there can be no assurances that unforeseen issues will not be encountered and the full impact on the Group of any failure of third parties systems and products cannot be ascertained with any finality.
Contingency operating procedures and plans have been developed to ensure that there is minimal impact should there be unforeseen Y2K breakdowns. The senior management together with the IT Department is closing monitoring such plans together with the respective equipment vendors and operators of plants and other systems to further mitigate any Y2K risks that may impact on the Group's business operations.
Yours faithfully,
For and on behalf of the Board
HO SAY KENG
c.c. Securities Commission
Attention : Issues and Investment Division
Fax No. 03 651 5213