annual report

T R A D E W I N D S ( M ) B E R H A D ( 1 9

1 2 3 K )

S T R A T E G I C M O V E S A C H I E V I N G M O R E

TRADEWINDS (M) BERHAD (19123-K) Level 12, Menara HLA No. 3, Jalan Kia Peng 50450 Kuala Lumpur

The theme “Strategic Moves. Achieving More”or Tradewinds (M) Berhad’s 2009 Annual Report denes the implementation o our strategic initiatives during the year. We are ocused on strengthening our core businesses whilst extending our reach and presence in both local and regional markets.

T 603-2179 7777 F 603-2161 1632

www.twinds.com.my A N N U A L R E P O R T 2 0 0 9

In view o the challenging global economic landscape, we undertook strategic measures and seized opportunities to achieve more as we reinorced our position as the leading integrated group.

annual report

2009

The imagery o “integrating pieces”eatured on the  ront cover refects our unwavering commitment to realise all objectives and consistently achieve more in all that we do while we strive or greater returns on investments and constantly maintain a stronger asset value base.

WHAT’S INSIDE

Corporate Vision T b th d glblly cmtitiv intgtd gibusinss gnistin tht dlivs utstnding vlu  ll.

CorporaTe VISIoN CorporaTe MISSIoN Ntic  annul Gnl Mting

2

Sttmnt accmnying th Ntic  annul Gnl Mting

6

Finncil Clnd 2009

7

Chimn’s Sttmnt

10

Gu Mnging Dict’s rviw  otins

18

Ct Inmtin

30

Ct Stuctu

32

pil  Dicts

36

Mngmnt Tm

41

Sttmnt n Ct Gvnnc

44

Sttmnt n Dicts’ rsnsibility

51

additinl Cmlinc Inmtin

52

Corporate Mission W, s  tm,  cmmittd t chiv u visin by: • pro provid viding ing pre premiu mium m pro produc ductsandservi tsandservice ces s toour cus custom tomers ers;; • opt optimi imisin sing g sha shareh rehold oldervalue ervalue;; • imp improv roving ing the qua qualit lity y oflifeof our em emplo ployee yees;and s;and • fos foster tering ing a sus sustai tainab nableenvir leenvironm onment ent. .

Sttmnt n Intnl Cntl

55

ptis  th Gu

192

rt  th audit Cmmitt

57

Shhlding Sttistics

199

Ct rsnsibility

64

additinl Inmtin n Shhlds

200

Gu Hl-Yly Hl-Yly rsults

70

Dicty  Gu’s otins

203

Fiv-Y Fiv-Y Gu Finncil Highlights

71

ForM oF proxY

Finncil Sttmnts

76

annual report 2009

1

NoTICe oF aNNUaL GeNeraL MeeTING

Ntic is hby givn tht th Thity-Sith annul Gnl Mting (“aGM”)  Tdwinds (M) Bhd (“TWS”  th “Cmny”) will b hld t Mhkt Bllm 2, Bllm Lvl, Htl Istn Kul Lumu, Lumu, 73, Jln rj Chuln, 50200 Kul Lumu n Tusdy, 22 Jun 2010 t 10.30 .m.  th llwing uss:As Ordinary Business, to consider and i thought it, to pass the ollowing resolutions:Ordinary Resolutions 1.

T civ nd dt th auditd Finncil Sttmnts  th inncil y ndd 31 Dcmb 2009 tgth with th rts  th Dicts nd Auditorsthereon;

rslutin 1

2.

T dcl  Finl Dividnd  5%  sh lss 25% incm t  th inncil yearended31December2009;

rslutin 2

3.

T v th ymnt  Dicts’ s  th inncil y ndd 31December2009;

rslutin 3

4.

Tore-ele ore-elect ct thefol thefollow lowin ingDir gDirec ector torswho swho arereq arerequi uire redtoret dtoretir irebyrot ebyrotat ation ion from from ic usunt t aticls 105 nd 106  th Cmny’s aticls  asscitin:Chuah Seong Tat;

rslutin 4

ii) Ooi Teik Huat; and

rslutin 5

iii) Khlid bin Sut.

rslutin 6

i)

5.

Tore-ele Tore-electt ctthe hefollowin followingDi gDirecto rectorsw rswhoa hoare rerequi required redtor toretire etirefro fromoff mofficep icepursua ursuant nt t aticl 110  th Cmny’s aticls  asscitin:i)

Dat DatukR ukRS Sha harrifu ifuddin ddinH Hiz izan anb bin inR RZ Zai ain nalA alAbi bidi din; n;a an nd

rslutin 7

ii) Dtuk Hj. Ismil bin Hj. Hj. Hshim. Hshim.

rslutin 8

6.

T int Dt’ Wi Syd abdul Jbb bin Syd Hssn whs ic shll bcm vcnt t th cnclusin  this aGM usunt t Sctin 129(2)  th Cmnis act, 1965 (th “act”) t hld ic until th cnclusin  th nt AGM;

rslutin 9

7.

T int Msss. anuul azizn Chw & C., s udits  th Cmny  th nsuing y nd t uthis th Dicts t i thi muntin.

rslutin 10

2

TRADEWINDS (M) BERHAD

As Special Business, to consider and i thought it, to pass the ollowing resolutions:Ordinary Resolutions 8.

psd Shhlds’ Mndts  th Cmny nd its Subsidiy Cmnis (cllctivly, th “Gu Cmnis”) t nt int rcunt rltd pty Tnsctins   rvnu  Tding Ntu sciid in th Cicul t Shhlds dtd 31 My 2010 (th “Cicul”):-

i)

Proposed Category A Mandate:THaT vl b nd is hby givn  th Gu Cmnis t nt int th cunt ltd ty tnsctins   vnu  tding ntu sciid nd st ut in Sctin 3.2  th Cicul (th “Ctgy a Mndt”) vidd tht such tnsctins  (i) in th diny cus  businss nd ncssy  dy-t-dy tins  th Gu Cmnis nd (ii) n nml cmmcil tms which  nt m vubl t th ltd tis thn ths gnlly vilbl t th ublic nd  nt dtimntl t th minity shhlds  TWS aND THaT unlss vkd  vid by th slutins  th shhlds  th Cmny in gnl mting, Ctgy a Mndt shll cntinu t b in c until th cnclusin  th nt aGM  th CompanyortheexpirationoftheperiodwithinwhichthenextAGMisrequiredtobeheldpursuant t Sctin 143(1)  th act (but shll nt tnd t such tnsins s my b llwd usunt t Sctin 143(2)  th sid act) whichv is li.

rslutin 11

aND FUrTHer THaT th Gu Cmnis b nd  hby uthisd t nt int nd cut ll such gmnts, instumnts, dcumnts nd dds nd t d ll cts, dds nd things ncssy, dint  dvisbl  nd in sct  Ctgy a Mndt nd th tnsctins cntmltd nd/ uthisd by th Ctgy a Mndt.

ii)

Proposed Category B Mandate:THaT vl b nd is hby givn  th Gu Cmnis t nt int th cunt ltd ty tnsctins   vnu  tding ntu sciid nd st ut in Sctin 4.2  th Cicul (th “Ctgy B Mndt”) vidd tht such tnsctins  (i) in th diny cus  businss nd ncssy  dy-t-dy tins  th Gu Cmnis nd (ii) n nml cmmcil tms which  nt m vubl t th ltd tis thn ths gnlly vilbl t th ublic nd  nt dtimntl t th minity shhlds  TWS aND THaT unlss vkd  vid by th slutins  th shhlds  th Cmny in gnl mting, Ctgy B Mndt shll cntinu t b in c until th cnclusin  th nt aGM  th CompanyortheexpirationoftheperiodwithinwhichthenextAGMisrequiredtobeheldpursuant t Sctin 143(1)  th act (but shll nt tnd t such tnsins s my b llwd usunt t Sctin 143(2)  th sid act) whichv is li. aND FUrTHer THaT th Gu Cmnis b nd  hby uthisd t nt int nd cut ll such gmnts, instumnts, dcumnts nd dds nd t d ll cts, dds nd things ncssy, dint  dvisbl  nd in sct  th Ctgy B Mndt nd th tnsctins cntmltd nd/ uthisd by th Ctgy B Mndt.

9.

T tnsct ny th diny businss t which du ntic shll hv bn givn.

annual report 2009

3

rslutin 12

NoTICe oF aNNUaL GeNeraL MeeTING

NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT Ntic is hby givn tht  Finl Dividnd  5%  sh lss 25% incm t in sct  th inncil y ndd 31 Dcmb 2009, i vd by th shhlds t th thcming aGM, will b id n 30 July 2010 t shhlds whs nms  n th Cmny’s rgist  Dsits n 15 July 2010. ADepositorshallqualifyforentitlementtothedividendonlyinrespectof:) Shs dsitd int th Dsit’s Scuitis accunt b 12.30 .m. n 13 July 2010 in sct  shareswhichareexemptedfrommandatorydeposit; b) Shs tnsd int th Dsit’s Scuitis accunt b 4.00 .m. n 15 July 2010 in sct  ordinarytransfer;and c) Shs bught n Bus Mlysi Scuitis Bhd n  cum ntitlmnt bsis ccding t th uls  Bus Mlysi Scuitis Bhd.

BY orDer oF THe BoarD MOHAMAD AFFENDI BIN YUSOFF Cmny Scty Kul Lumu 31 My 2010

4

(LS 007158)


Notes: Proxy 1.

a mmb  th Cmny ntitld t ttnd nd vt t th mting is ntitld t int ny n sn t b his/h y withut limittin t ttnd nd vt in his/h std nd th visins  Sctin 149(1)() nd (b)  th act shll notapplytotheCompany.AproxymaybutneednotbeamemberoftheCompany;

2.

Wh  mmb  th Cmny is n uthisd nmin s dind und th Cntl Dsitis act, it my int n y in sct  ch scuitis ccunt it hlds with diny shs  th Cmny stnding t th cdit  th saidsecuritiesaccount;

3.

This Fm  py t b vlid, must b dsitd t th Sh rgist’s ic, Symhny Sh rgists Sdn Bhd t Lvl 6, Symhny Hus, pust Dgngn Dn 1, Jln pJU 1a/46, 47301 ptling Jy, Slng Dul ehsn n  b Sundy, 20 Jun 2010 t 10.30 .m. bing nt lss thn ty-ight hus b th tim id  hlding th mting  t anyadjournmentthereof;

4.

In th cs   ct mmb, th y intd must b in ccdnc with th Mmndum nd aticls  AssociationandtheFormofProxyshouldbegivenunderitscommonsealorunderthehandofitsattorney;and

5.

Sttmnt accmnying th Ntic  annul Gnl Mting n pils  th Dicts stnding  -lctin nd intmnt s Dicts  th Cmny  rslutins 4 t 9  shwn n g 6  this annul rt.

EXPLANATORY NOTES ON SPECIAL BUSINESS:F uth inmtin n odiny rslutins 11 nd 12, ls  t th Cicul t Shhlds dtd 31 My 2010 ccmnying this annul rt.

annual report 2009

5

STaTeMeNT aCCoMpaNYING THe NoTICe oF aNNUaL GeNeraL MeeTING madepursuanttoParagraph8.27(2)oftheMainMarketListingRequirementsofBursaMalaysiaSecuritiesBerhad

1.

2.

Dicts wh  stnding  -lctin nd intmnt by ttin t th annul Gnl Mting  th Cmny (“aGM”) usunt t aticls 105 nd 106  th aticls  asscitin  th Cmny  s llws:i)

Chuah Seong Tat;

ii)

Ooi Teik Huat; and

iii)

Khlid bin Sut.

Dicts wh  stnding  intmnt t th aGM  th Cmny usunt t aticl 110  th aticls  asscitin  th Cmny  s llws:i) ii)

Datuk R Sharifuddin Hizan bin R Zainal Abidin; and Dtuk Hj. Ismil bin Hj. Hshim.

3.

Dt’ Wi Syd abdul Jbb bin Syd Hssn wh is 70 ys  g, is stnding  intmnt t th aGM in ccdnc with Sctin 129(6)  th Cmnis act, 1965.

4.

eight Bd Mtings w hld duing th inncil y ndd 31 Dcmb 2009. Dtils  ttndnc  Dicts t th sid Bd Mtings  cntind in thi sctiv il n gs 36 t 40  this annul rt.

5.

Th aGM  Tdwinds (M) Bhd will b hld s llws:-

6.

Vnu

:

Dt Tim

: :

Mhkt Bllm 2, Bllm Lvl Htl Istn Kul Lumu 73, Jln rj Chuln 50200 Kul Lumu 22 Jun 2010 10.30 .m.

Futh dtils  Dicts wh  stnding  -lctin nd intmnt  shwn n gs 36 t 40  this annul rt.

6


FINaNCIaL CaLeNDar 2009 ANNOUNCEMENT OF FINANCIAL RESULTS 1st quarter

27 May 2009

2nd quarter

28 August 2009

3d quarter

23 November 2009

4th quarter

23 February 2010

DIVIDENDS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009 nnuncd

23 Fbuy 2010

ntitlmnt dt

7 My 2010

ymnt dt

21 My 2010

1st Intim – 10%  sh lss 25% Incm T

Finl – 5%  sh lss 25% Incm T

Subjct t th vl by shhlds t th 36th annul Gnl Mting

GENERAL MEETINGS 35th annul Gnl Mting

17 Jun 2009

etdiny Gnl Mting

28 octb 2009

36th annul Gnl Mting

22 Jun 2010

annual report 2009

7

strategic growth

achieving reach We are ocused on sowing the seeds o opportunities by establishing our presence and exploring new growth with expansionary plans or many more.

chimn’s

sttmnt d shhlds, Th nncil y ndd 31 Dcmb 2009 cntinud t b  chllnging n, wing t th linging cts  wht ws th wst glbl cnmic dwntun in svn dcds. Dsit th dvs cnditins cusd by th glbl cnmic nd nncil tumil, Tdwinds (M) Bhd (“TWS”  th “Cmny”) tund in  cmmndbl mnc in 2009, du t th lntlss div by th Bd  Dicts (“Bd”) nd th mngmnt tm t nsu businss gwth nd tinl cincy. on th ct nt, 2009 ws  busy nd citing y  th Cmny. F  dynmic ntity lik TWS, th Cmny lisd tht gnic gwth ln ws insucint t mt its visin  bing th d glblly cmtitiv intgtd gibusinss gnistin tht dlivs utstnding vlu t u custms. Thus,whenanopportunitytoacquire  cntlling stk in pdibs Nsinl Bhd (“BerNaS”) presenteditself,wequicklyrecognised th tntil it culd bing in tms  nsin in lin with u visin. Th acquisition haspositioned theGroup t bcm n  th lgst dnd-cmmdity-bsd lys in th gin. In nth sttgic mv t stngthn u snc in th

10

ustm nd dwnstm scts  th ubb businss, th Gu wnt n t uchs sttgic stks in Nthn Intgtd agicultu (“NIa”) Sdn Bhd in octb 2009. on the proposed acquisition of Mardec Bhd (“MarDeC”), th cis is nw in th nl stgs  cmltin. Hving lid th undtins, th nncil y 2010 is st t b n  chiving m. Th cnt acquisitions will also enable TWS to ulll its nultimt bjctiv  nhncing shhlds vlu. In ding s, w will cntinu t stiv t chiv u ultimt gl  sving th ntin nd its l in th siit  1Mlysi nd in unisn t th sitins susd in th Nw ecnmic Mdl. With th nlgd TWS Gu, it is my cnvictin tht th bst ys  th Cmny  just hd. W lk wd with timism t  m vibnt nd bight utu.

FINANCIAL PERFORMANCE rvnu  th nncil y ndd 2009 gw by 17.1% t rM2.069 billin m rM1.768 billin cdd in 2008. Dsit th gwth in businss vlum, th signicnt d in cud lm il (“Cpo”) ic thughut 2009 hs sultd in t b t (“pBT”) t dclin t rM245.9 millin, which is  17.7% d m th vius nncil y. accdingly, nt t ll by 22.7% t rM171.7 millin cmd t rM222.2 millin chivd viusly.


Key Perormance Indicators

2009

2008

Basic EPS (sen)

46.95

56.09

Net proft or the fnancial year (RM’000)

171,739

222,242

Revenue (RM’000)

2,069,398

1,767,566

Dato’ Wira Syed Abdul Jabbar bin Syed Hassan Chairman

Th incs in th Gu’s vnu ws minly ttibutd t th inclusin  stacquisition revenue from BERNAS Group munting t rM334.2 millin. anth ct ws th incsd cntibutin m th Sug Divisin which chivd high sls  nd sug t th dmstic mkt, bsting its tunv by 13.2% t rM976.2 millin. This hld t cmnst th shtll in vnu gntd by th plnttin Divisin which ll by 16.2% t rM758.7 millin s cmd t rM905.1 millin std in 2008. Th dclin in th plnttin Divisin’s vnu ws ttibutd t lw Cpo nd lm knl vg slling ics dsit high ductin vlums. F th nncil y ndd 2009, BerNaS std its highst v vnu sinc its ivtistin in 1996. F th nncil y ndd 2009, BerNaS hs tund und t st  pBT  rM238.3 millin whil its nt t std t rM179.5 millin. Th tunund ws chivd lgly thugh th imlmnttin  ctiv icing nd mkt stbilistin sttgis. althugh th ltst nncil sults my nt b s imssiv s tht  th vius y, w ct t  btt in th cming ys with th ull y’s inclusin  BerNaS’ sults andcontributionsfromothernewly-acquired cmnis. Finncil numbs sid, w  ncugd by th stbl mnc  th TWS cunt n th FTSe Bus Mlysi KLCI. Invsts nd nlysts lik  bullish but th lngtm scts  th Cmny, ntbly in th liklihd  incsd nings m th nw nlgd Gu.

DIVIDENDS tatacitatumsanditnisimqui Th Cmny cntinus t vid dividnds duing th y 2009. Subjct t th vl  shhlds, th Bd hs cmmndd  nl dividnd  5 sn  sh lss 25% incm t. I w includ th intim dividnd  10 sn  sh lss 25% incm t id n 21 My 2010, th ttl gss dividnd t b id with sct t th nncil y ndd 31 Dcmb 2009 wuld munt t 15 sn  sh.

annual report 2009

11

CHaIrMaN’S STaTeMeNT 5-YEAR PRODUCTION HIGHLIGHTS Palm Kernel

80,000

4 5 4 , 7 5

64,000

48,000

Crude Palm Oil

6 4 7 , 3 6

7 2 4 , 8 6

5 7 3 , 1 7

1,800,000

350,000

280,000

0 0 5 , 1 4

210,000

Fresh Fruit Bunches

MT

MT

MT

1 5 7 , 6 3 2

1 9 7 , 0 5 2

9 0 9 , 3 7 2

0 0 4 , 8 8 2

1,440,000

3 4 0 , 7 7 1

1,080,000

32,000

140,000

720,000

16,000

70,000

360,000

0 2 00 6

2 00 7

2 00 8

2 00 9

2 00 5

2 00 6

CORPORATE DEVELOPMENTS tatacitatumsanditnisimqui TheGroup’sacquisitiontrailbeganwithBERNAS,acompany listd n th Min Mkt  Bus Mlysi Scuitis Bhd. With imtly 40% mkt sh, BerNaS is th singl lgst ly in th dmstic ddy nd ic industy. BerNaS is invlvd in th cumnt nd cssing  ddy s wll s th imttin, whusing, distibutin nd mkting  ic in Mlysi. With BerNaS within u ld, th Gu cuntly cntls  signicnt sh  th ddy nd lcl ricemarket.Theexercisetoacquire53.76%stakeinBERNAS ws cid ut in stgs, bginning in august 2009 nd cmltd in Jnuy 2010 whby th stk ws incsd t 72.57% t th mndty gnl  cis. In th mj ct dvlmnts, u mjity-wnd subsidiy, Tdwinds plnttin Bhd (“TpB”), ntd int n gmnt with Gk Mshyu (Mlysi) Sdn Bhd n 21 August2009toacquire70%equityinterestinNIAforacash cnsidtin  rM50.36 millin. NIa wns 1,057.5 hcts

12

0 0 7 , 7 2 3 , 1

7 4 3 , 4 5 3 , 1

4 0 7 , 2 6 3 , 1

0

0 2 00 5

0 7 2 , 0 5 0 , 1

9 0 8 , 8 8 2 , 1

2 00 7

2 00 8

2 00 9

2 00 5

2 00 6

2 00 7

2 00 8

2 00 9

 lnd tht  sttgiclly lctd within th vicinity  Tdwinds Cid Sdn Bhd (“TC”)’s isting il lm nd ubb lnttin lnd in Kdh. This will nbl th Gu t  th bnts  cnmis  scl divd m th nlgd lnttin tins. a ttl  451.3 hcts hv bn lntd with ubb ts n th NIa lnds btwn 1996 nd 1999. Bsids viding n immdit suc  cuing vnu, it givs th Gu  hd-stt in its ln t divsiy its stt hldings by incsing th  lntd with ubb ts t 6,120 hcts. This will mk it th lgst cmmcilly-wnd ubb lnttin in  singl lctin in Mlysi. a Mst Lyut pln hs bn vd  th mining lnd wnd by NIa t b dvld  sidntil nd cmmcil uss including th dvlmnt   duty zn, n inlnd t,  l gistics cnt nd n ductinl sch institut. Th Mst Lyut pln cmlmnts TC’s lng-tm visin  n intgtd ubb tding twnshi.


on 30 octb 2009, pism Skt Sdn Bhd which is  whlly-wnd subsidiy  TPB,enteredinto an agreementto acquire th nti issud diny shs in Mdc Bhd (“MarDeC”) m Smi Byu Sdn Bhd   ttl csh cnsidtin  rM150 million.TheproposedacquisitionofMARDEC vids  sttgic t t th Gu’s lns t nd its ubb ctivitis dwnstm int th cssing nd mkting  ubb ducts. Inctd v 40 ys g, MarDeC is  ubb cnglmt with  vn tck cd in th cssing nd tding  ubb nd th mnuctuing  vlu-ddd ubb nd lym ducts. as  ginl ly, MarDeC hs md inds int th mj ubb ducing cuntis nmly Indnsi, Thilnd, Vitnm nd Indi.

ENTERPRISE RISK MANAGEMENT FRAMEWORK tatacitatumsanditnisimqui a visin v th isting mwk  ntis isk mngmnt (“erM”) bgn duing th nncil y ndd 2009 t ddss th cncn  th mmbs  th Bd with gds t th v-mhsis n tinl isks. as  sult,  tm  tnl cnsultnts hs bn nggd t dvis th audit Cmmitt nd ultimtly th Bd n th erM unctin in th Cmny nd th Gu, nd th wy wd t nhnc th css  isk idntictin, tinl orstrategicandthesubsequentactionplans t mng ths isks. a m dtild viw n isk mngmnt ctivitis thughut 2009 is disclsd in th ccmnying Sttmnt  Intnl Cntl  this annul rt.

annual report 2009

13

CHaIrMaN’S STaTeMeNT A PROMISING OUTLOOKt aci ttumsndit nisimqui as n  th lgst gus li std n th Min Mkt  Bus Mlysi Scuitis Bhd, TWS Gu is blssd with  slid undtin un which it cn build  mising nd citing utu. ov th ys, w hv stblishd uslvs s  ky ly in th d nd lnttin businsss with  stll track record of delivering quality products nd svics. Fm this sitin  stngth, w hv th fibility t gw u businsss through strategicacquisitions. Guided by a cl visin  wh w  hding nd  dm tht will tk us th, th TWS Gu is wll sitind t citlis n mging tunitis in th mktlc lclly nd glblly. Th nncil y 2010 is ldy shing u t b  mising n. Th ly signs  cvy in th glbl cnmy  ctd t m u in 2010 with gwth t 3.1%  th y s cmd t  ngtiv gwth  1.1% in 2009. With imving dmstic nd tnl dmnd, culd with  udnt scl stnc nd msus t stngthn cvy, th Mlysin cnmy is ctd t gw t but 5.7% in 2010. Bsd n th viling ics  lm ducts nd ctd incs in ductin, th mnc  th plnttin Divisin is ctd t imv in 2010. althugh th Sug Divisin hd incd thinning mgins in 2009, its cntinud cus n cntlling ductin costs and maintaining high product quality will nsu cntinud tbility in th cming ys.

14


as  s th ric Divisin is cncnd, 2010 is ctd t b  chllnging y s intntinl ic ics hv bn n th incs sinc th stt  th y in nticitin   shtg in glbl sulis  this stl d itm. Hwv, this will b cushind by lnnd cumnt sttgis tht invlv buying wd, n bidding nd dict ngtitins t suc. By tking ctiv nd mitigting msus, th ric Divisin is ctd t m stisctily in 2010. In sht, 2010 will b  y  chiving m. M in tms  ductivity, cincy, svic, tbility nd mst  ll, ullling u snsibility s  gd ct citizn, living u t th cttins  th ntin nd its l.

I wish t ss my citin t my llw mmbs n th Bd wh hv bn unstinting in thi sut nd wis cunsl. Sinc th lst annul rt, M. Tn G Si nd M. B Yw Lng signd m th Bd. on bhl  th Bd  Dicts, I thnk ths gntlmn  thi cntibutins nd wish thm succss in thi utu undtkings. encik Bky bin Hmzh hs bn -dsigntd s th Gu Mnging Dict whil encik Mhd Nzi bin Shi hs bn -dsigntd s th Gu Chi Finncil oc. W wish thm ll th bst in thi nw ccitis. It is my lsu t wlcm n bd, YM Dtuk r Shiuddin Hizn bin r Zinl abidin nd Dtuk Hj. Ismil bin Hj. Hshim. Thy bing t th B d vst knwldg nd inc nd w lk wd t bnting m thi sh insights. I thnk ll  yu.

DATO’ WIRA SYED ABDUL JABBAR BIN SYED HASSAN Chimn

ACKNOWLEDGEMENTS anditnisimqui ou mngmnt nd st hv shwn mly discilin, ssinlism nd cmmitmnt t bing TWS t wh w  tdy but  lt mins t b dn. With  cl visin t guid us, w will cntinu t dnd n u tm i w  t chiv ll w hv st ut t d. Th Cmny is ls tunt in tht it hs  gt sut tm md u  u businss sscits, tns, sctiv gvnmnt gncy, uthitis, custms nd  cus, u shhlds. Yu sut hs md  dinc in  chllnging y.

annual report 2009

15

2009

revenue of RM759 million plantation division

gu mnging dict’s

viw  tins In my ccity s th Gu Mnging Dict, I m lsd t snt my midn t n th viw  tins  Tdwinds (M) Bhd  th nncil y ndd 31 Dcmb 2009.

18


Bakry bin Hamzah Group Managing Director

OPERATING SCENARIO tatacitatumsanditnisimqui Th dmin cts  th glbl cnmic dwntun  lt

Whn th ic  cud il chd its ll-tim high 

t this dy nd cntinu t hv n imct n th tins  Tdwinds (M) Bhd (“TWS”  th “Cmny”). In u

USD147  bl in July 2008, it ciittd  clls in

c plnttin Divisin wh il lm is th min lnttin c, th vg cud lm il (“Cpo”) ic in 2009 dcsd by 20% t rM2,150  MT ginst rM2,676 

n  llcst id. a cmbintin   hvsts, scultins nd stng dmnd snt th ic  w sug

MT in th vius y. Th vg lm knl (“pK”) ic

cmmdity ics. Sinc thn, cmmdity ics hd bn

sing in 2009 s glbl suly ll sht  dmnd. at its k, th ic  w sug incsd by m thn 100%.

ls dclind by 34% t rM974  MT m rM1,466  MT cdd in 2008. Cpo nd pK ductins in Mlysi w ls ctd by th bilgicl stss  th bum hvst

Th wld ic scni in 2009 ws n  ltiv clm t th ic shtg cisis in 2008. Glbl stcks imvd duing

 th vius y nd th cts  hvy inll in Sbh nd Swk which cubd th utut  sh uit

th y llwing  succssul 2008 lnting cmign. accding t th Fd nd agicultu ognistin, glbl

bunchs (“FFB”). on th th hnd, Mlysin ubb ics

ddy ductin  2009 muntd t 678 millin MT, 2% blw 2008 lvl. Th ttl vlum  ic tdd intntinlly

gind gund du t stng dmnd nd tight sulis m ducing cuntis.

mind lw, cnstituting sm 5% t 7%  wldwid ductin. Th intntinl ic  th bnchmk Thi Whit ric 100%B ws ltivly stbl, nging m USD530  MT t USD637  MT, b clsing th y t USD618  MT.

annual report 2009

19

2009/2010 ESTIMATES OF THE HECTARAGE AND AGE PROFILE OF PALM OIL AND RUBBER TREES Peninsular Malaysia (Ha)

Sarawak (Ha)

27,448 4,589

42,040 3,603

8,639

21,349

369 1,821

3,216 579

12,450

6,419 8,263

GroUp MaNaGING DIreCTor’S reVIeW oF operaTIoNS

FFB and CPO Production Volume (MT) 2008 and 2009

Th Gu hs 94,346 hcts  lnd lntd with il lm ut  which 57% hv reached maturity (9-18 years); another 18% cnsist  yung mtud lms (4–8 ys), whil immtu lms mk u 16%. Th blnc  th lm mtuity l cmiss lms tht  st thi im   mkd  lnting. Th Gu cuntly hs n dditinl 42,380 hcts  lnd which hv bn st sid  il lm lnttin,  which 14,477 hcts  still und dvlmnt nd 27,903 hcts hv yt t b lntd.

MT’000 1,500

4 5 3 , 1

3 6 3 , 1

1,200

900

600

4 7 2

300

0

FFB 2009

PLANTATION DIVISION

8 8 2

Duing th y, FFB ductin incsd mginlly by 0.6% t 1,362,704 MT, cmd t 1,354,347 MT chivd in th vius y. accdingly, FFB yild s by 0.5% t 16.95 MT  hct m 16.86 MT  hct std  y li.

CPO 2008

20


Th Gu hs tn lm il mills with  ttl cmbind ccity  1,420,000 MT. Duing th y, 1,161,541 MT  FFB  85%  ttl ductin, w cssd t ths mills. Th mining 15% ws cssd t mills wnd by thid tis. Th mtin  th Jint Cnsulttiv Cmmitts (“JCC”) hs cntibutd t  stdy imvmnt in il tctin ts (“oer”). In 2009, th oer  Cpo hs incsd t 21.21%, which is th highst lvl chivd t-dt. Th tctin t  pK hs ls imvd mginlly t 5.25%. Th mills ls cdd  5.3% incs in th ductin  Cpo t 288,400 MT whil pK ductin s by 4.3% t 71,375 MT. Th JCC which ws st u in 2006 s  quality improvement initiative is made u  stt nd mill snnl. JCC vids  usul unctin in idntiying blms, cmmnding slutins, slving cnficts nd shing inmtin with th JCC tms. Sinc its mtin, it hs cntibutd twds cntinuus imvmnt in oer.

Sabah (Ha)

Total (Ha)

921 206 292

9,112 29,988

Oil palm matured Oil palm immature Rubber matured Rubber immature

369 Oil palm under development

9,884

14,477

Rubber under development

3,216 579 14,974

Plantable reserves Others

79,372

il

l

il

l

i

il

l

il

l

i il

i

i

l

lil

l

l

l l

l

l l

l

annual report 2009

21


22


SUGAR DIVISION Th y und viw sw th ic  w sug incsd m US11.8 cnts  und in ly Jnuy 2009 t US27.1 cnts  und in Dcmb 2009, n incs  but 130%. Culd with th high vltil w sug ics, 2009 ws indd  vy chllnging y  th divisi n. F th nncil y ndd 2009, th Sug Divisin gntd ttl vnu  rM976.2 millin s ginst rM862.2 millin std in th vius y. Th incs in vnu  13.2% ws minly ttibutd t high dmstic sls vlum nd high vg t slling ic ginst th vius nncil y.

Bth CSr nd GpT duc  wid ng  highqualityproductsforindustrialandretail mkts. as t   cntinuus nsin gmm, CSr will b incsing its ductin ccity m 1,500 MT  dy t 2,000 MT  dy, n incs  but 33% by th scnd hl  2010. Duing th y und viw, nth milstn ws chivd by GpT whn it ws wdd th oHSaS 18001:2007 ctictin m SIrIM QaS.

Refned Sugar Production Volume (MT) 2008 and 2009 MT’000 750

6 3 6

2 4 6

600

450

300

psntly, Mlysi hs nly u sug nis,  which tw  wnd by TWS i.. Cntl Sugs rny Sdn Bhd (“CSr”) t Btu Tig Shh alm, Slng nd Gul pdng T Sdn Bhd (“GpT”) t Kul Nng, Kdh.

150

0 2009

annual report 2009

23

2008


RICE DIVISION Thugh pdibs Nsinl Bhd (“BerNaS”), th ric Divisin md its midn cntibutin t Gu vnu in the fourth quarter of 2009. BERNAS hs sitind itsl s th ntin’s tn in th dmstic ddy nd ic industy. It is invlvd in th cumnt nd cssing  ddy s wll s th imttin, whusing, distibutin nd mkting  ic in Mlysi. Duing th y, ttl vlum  lcl ddy uchsd by BerNaS s by 12% t 470,441 MT. Th ic  dmstic ddy ws ltivly stbl, hving btwn rM1,000  MT nd rM1,200  MT in th st nd nth  th pninsul. Hwv, in th cntl gin  th pninsul, ticully in th stt  Slng, ics sikd t  high  rM1,380  MT. T hl st ics t  m stbl lvl  rM1,100 t rM1,200  MT, BerNaS hs intducd mkt stbilistin sttgis such s th “Skim Upah Mengering dan Kisar” nd th “Program Rakan Ladang” .

24


In th imtd ic nt, BerNaS cntinud t dt  multil-cunty sucing sttgy t nsu d scuity  th ntin with th bulk  imts cming m Thilnd, Vitnm nd pkistn. In 2009, ttl ic sls incsd by 28% t 1.31 millin MT, cmd t 1.02 millin MT in 2008. as t   utu cisis mitigtin ln nd t ch ut m ctivly t cnsums, BerNaS hs nd  ttl  27 til utlts in 2009, with lns t dd nth 21 utlts by th nd  2010. Duing th y, BerNaS invstd  ttl  rM9.0 millin t ugd its mills nd th Cntl pckging plnt in Bukit ry, Kdh. TheacquisitionofBERNASisexpectedto vid syngistic bnts in ll s  tins. evn thugh it is liminy, syngy-listin sttgis hv bn ut in lc t hnss th bnts  th acquisition.

annual report 2009

25


OUR COMMITMENT TO SUSTAINABILITY

THE QUALITY IMPERATIVE

It ws nt t lng g tht th cus  businss ws n gnting ts. In th m nlightnd g  nvinmntl nd scil cnsciusnss, th is  suging dmnd m civil scity, cnsums, stkhlds nd ths  cmnis t cnduct sustinbl businss ctics. Th dmissin  Tdwinds plnttin Bhd t th rundtbl n Sustinbl plm oil (“rSpo”) in My 2009 is  tstmnt t th Gu’s cmmitmnt t dting gd gicultul ctics s wll s chiving nvinmntl nd scil sustinbility in ting its businss.

TWS’commitmenttoqualityismanifestedinitsaccreditation gmm t vius ctictin bdis. Mny  u ting units hv ldy nd ctictin t MS ISo 9002:1987  Qulity Mngmnt Systms nd MS ISo 14001  envinmntl Mngmnt Systms. In dditin t ths, th lvnt ting units hv ls scud th HaLaLJaKIM ctictin  ‘halal’ ducts nd th HaCCp-SGS ctictin  d sty.

Th bd nd mngmnt hv lnt its ull sut  mmbshi t th rSpo nd th dtin  th ig ht rSpo incils nd citi tht m th guidlins t sustinbl stt mngmnt. Duing th y, th lvnt ting snnl in th in jct w md w  th nw ch t gicultul ctics thugh  sis  tining gmms nd dshws. at th sm tim, systms nd cntl ctics w ut in lc t nbl ld tsting nd mnit imvmnt by lying th rSpo incils nd citi t th gtst tnt. Th rSpo gmm ws cilly lunchd in Dcmb 2009. It is imlmntd s  ilt jct  tw ys t which indndnt bdis will b invitd t udit nd viy its cmlinc with th rSpo incils nd citi.

26

In 2009, w w cusing u ts n btining ISo 9001:2008 ctictin  Ulu Sbl nd Sungi Kchu mills in th Suthn pninsul gin. ISo 9001:2008 scis th requirements for a quality management system where an gnistin nds t dmnstt its bility t cnsistntly vid ducts tht mt custms nd licbl statutoryandregulatoryrequirements.Italsoaimstoenhance custm stisctin thugh ctiv lictin  th systm including csss  cntinul imvmnt  th systm nd th ssunc  cnmity t custms nd applicable statutory and regulatory requirements.SIRIM QAS hasalreadyperformedtheadequacyauditandthenalaudit ws cid ut in ail 2010. Ctictin  th tw mills is ctd in My 2010. Inpressingaheadwithitsqualityinitiatives,theManagement hs und  usul tn in th JCC. Ths cmmitts w st u t build tmwk nd tm dynmics within th scic s. Th min bjctivs  th JCCs  t idntiy blms, vid slutins, slv cnficts nd sh inmtin with th JCCs css th Gu. Th cllbtiv ts  th JCCs hv ldy ducd sitiv sult with ll tn lm il mills shwing high oers sinc th intductin  JCCs. F 2009, th Gu chivd  cd-bking oer  v 21%. Fiv mills ttind n vg oer bv 21%  th y und viw s cmd t nly th in 2008.


a rwd nd rcgnitin gmm hs bn institutd t cknwldg th hd wk ut in by th sctiv JCC tm nd t mintin nthusism, wk intst nd mtivtin mngst th ting units. Th gmm cknwldgd th tms  chiving th highst oer bv th bnchmk  21.5%   id  si mnths. Th Bst pming JCC Tm  th nncil y ndd 2009 ws th Kt Tinggi JCC Tm which chivd n oer  22.03% clly cding th bnchmk lvl. Inemphasisingtheimportanceofqualityinouroperations,we hv ls dsigntd  Qulity Dy (“Q-Dy”)  ch  th si gghicl lctins  u tins. Duing th y, Q-Dy ws succssully gnisd  Sibu, Suthn pninsul, Mii nd Nthn pninsul rgins. Q-Dy  Kuching nd Sbh/Lws gins  schduld  mid-2010. ognisd jintly by th JCCs nd th sctiv rginl oc, th Q-Dayprovidesausefulplatformtoaddressqualityissuesand inculct n innvtiv mindst t cntinully imv wk csss with th bjctiv  mintining  ducing csts whil incsing ductivity nd vnu  th Gu.

MOVING FORWARD

W  lvging th gins  th vius y nd ing itsadvantages. Fortiedby ourrecentacquisitions,we have t l uth th syngy nd inhnt tntil within th nlgd Gu nd hnss th w m it. In mving wd, w must build TWS s  bnd nd  c t b cknd with t hm nd in th intntinl n. W hv gd  cgnt sttgy t bing th Gu t vn gt hights nd w knw wht w must d t g t th. at th sm tim, w ls lis tht sttgis must lwys b tmd with udnc nd clibtd m tim t tim. In  wld  chng, th n thing tht will min cnstnt is u vlus. ou c vlus – Intgity, accuntbility, Innvtiv, Knwldgbl, entising, Cing – m n imtnt cnstn  u ct hilshy nd th wy w cnduct u businsss. With BerNaS, Nthn Intgtd agicultu Sdn Bhd nd Mdc Bhd nw includd within u ct stbl, w will s  tm cntinu t:• • • •

providepremiumproductsandservicestoourcustomers; optimiseshareholdervalue; improvethequalityoflifeforouremployees;and fosterasustainableenvironment.

Th st y hs bn  whilwind  ctivitis nd with th acquisitionexercisesnowbehindus,TWSisrmlyonthepath Tgth, w will build  btt tmw. I invit yu t b t   m citing nd mising utu. ou imy bjctiv   bight, m citing nd sus utu. in th cunt nncil y nd v th nt w ys is t build n th Gu’s nw sitin  stngth nd slidiy its nncil stngth.

BAKRY BIN HAMZAH Gu Mnging Dict

annual report 2009

27

2009

revenue of RM976 million sugar division

BOARD OF DIRECTORS Dato’ Wira Syed Abdul Jabbar bin Syed Hassan Indndnt Nn-ecutiv Dict, Chimn Bakry bin Hamzah Nn-Indndnt ecutiv Dict Gu Mnging Dict (Redesignated from Non-Independent Non-Executive Director w.e.f. 3 February 2010) Syed Azmin bin Syed Nor Nn-Indndnt Nn-ecutiv Dict Chuah Seong Tat Nn-Indndnt Nn-ecutiv Dict

CorporaTe INForMaTIoN AUDIT COMMITTEE

REGISTERED OFFICE

Ooi Teik Huat Chimn

Lvl 12, Mn HLa N. 3, Jln Ki png 50450 Kul Lumu Tl : 603-2179 7777 F : 603-2161 1632 Wbsit: www.twinds.cm.my emil: in@twinds.cm.my

Syed Azmin bin Syed Nor Khalid bin Suat

NOMINATION AND REMUNERATION COMMITTEE

COMPANY SECRETARY

Dato’ Wira Syed Abdul Jabbar bin Syed Hassan Chimn

Mhmd andi bin Yus (LS007158)

Ooi Teik Huat (Appointed w.e.f. 27 January 2010)

JOINT COMPANY SECRETARY Skinh binti abdul Kdi (MaICSa 7000087) (Resigned w.e.f. 28 April 2010)

Khalid bin Suat (Appointed w.e.f. 3 February 2010)

AUDITORS Bakry bin Hamzah (Resigned w.e.f. 3 February 2010)

Msss. anuul azizn Chw & C N. 18, Jln 1/64 o Jln Klm ai, Jln Ih 51200 Kul Lumu Tl : 603-4041 7233 F : 603-4041 0395

Boo Yew Leng (Resigned w.e.f. 6 January 2010)

EXECUTIVE COMMITTEE Dato’ Wira Syed Abdul Jabbar bin Syed Hassan Chimn Bakry bin Hamzah Chuah Seong Tat

30


Ooi Teik Huat Indndnt Nn-ecutiv Dict Khalid bin Suat Indndnt Nn-ecutiv Dict Datuk R Shariuddin Hizan bin R Zainal Abidin Nn-Indndnt Nn-ecutiv Dict (Appointed w.e.f. 22 February 2010) Datuk Hj. Ismail bin Hj. Hashim Nn-Indndnt Nn-ecutiv Dict (Appointed w.e.f. 11 March 2010)

Boo Yew Leng Nn-Indndnt Nn-ecutiv Dict (Resigned w.e.f. 6 January 2010) Tan Gee Sooi Nn-Indndnt Nn-ecutiv Dict (Resigned w.e.f. 6 January 2010) Ahmad bin Abu Bakar Indndnt Nn-ecutiv Dict (Resigned w.e.f. 1 April 2009) Dr. Shariuddin bin Abdul Hamid Indndnt Nn-ecutiv Dict (Resigned w.e.f. 1 April 2009)

SHARE REGISTRAR

FORM OF LEGAL ENTITY

Symhny Sh rgists Sdn Bhd Lvl 6, Symhny Hus pust Dgngn Dn 1 Jln pJU 1a/46 47301 ptling Jy Slng Dul ehsn Tl : 603-7841 8000 F : 603-7841 8008

Inctd n 19 Jun 1974 s  ivt cmny limitd by shs und th Cmnis act, 1965 s Tdwinds (M) Sdn Bhd nd ws cnvtd int  ublic cmny n 28 Stmb 1987 nd sinc thn knwn s Tdwinds (M) Bhd.

PLACE OF INCORPORATION AND DOMICILE Mlysi

SOLICITORS pkhuddin & ptns Mtin Chh & asscits alb & ptns

BANKERS Mlyn Bnking Bhd CIMB Bnk Bhd rHB Bnk Bhd Bngkk Bnk Bhd amBnk (M) Bhd public Bnk Bhd

STOCK EXCHANGE LISTING Min Mkt  Bus Mlysi Scuitis Bhd

STOCK NAME TWS

STOCK CODE 4421

ISIN MYL 442100003

annual report 2009

31

CorporaTe STrUCTUre

n

100% Central Sugars Refinery Sdn Bhd

n

*69.76% Tradewinds Plantation Berhad

n

100% Delta Delights Sdn Bhd n n n n

100% 100% 100% 100%

Dlt Dlights (Cmbdi) C Ltd Tdwinds Cmbdi C Ltd Tdwinds rlty C Ltd Csus Limitd

#

n

Mnuctuing nd tding

n

Cultivtin  il lm nd ductin  cud lm il

n Cultivtin  lm il n plnttin mngmnt nd

dvisy svics

n

n n n

n

Sl nd sciic us t undtk Islmic Scuitis Tnsctins

n

Invstmnt hlding cmny

n

n

Cultivtin  il lm nd ubb ts

n

n

pty dvlmnt nd ubb lnttin

n

n

ric businss

n

oth businss

n

n

n

n n n

n Csd tins n

n

n

pty Dmnt

n n n n

Nt: * public listd # ecluding dmnt, inctiv nd indict subsidiis which hv csd tins

32

n n

100% Tdwinds plnttin Mngmnt Sdn Bhd 100% Tdwinds ag Svics Sdn Bhd 100% Tdwinds plntch Sdn Bhd 100% Tdwinds plnttin Citl Sdn Bhd 100% Tdwinds Cid Sdn Bhd 100% Quk Shin & Sns pt Ltd 100% Tn Chn rlty Cmny Sdn Bhd 100% Ldng Chndn Sdn Bhd 100% Ibk plnttin Sdn Bhd 100% Ldng Mw Sdn Bhd 100% Syikt Ldng Swit Chul Sdn Bhd 100% Binu plnttins Sdn Bhd 100% Ldng pmi Sdn Bhd 100% Ldng Ss Sdn Bhd 100% pism Skt Sdn Bhd 70% Bht Bhgi Sdn Bhd 70% Bisn Tkd Sdn Bhd 70% Kumuln Kis Jti Sdn Bhd 70% Nthn Intgtd agicultu Sdn Bhd 50% pid plm oil Mill Sdn Bhd n 100% Sl Gn Sdn Bhd


n

n

100% Jh Tngg oil plm Bhd n 100% Ldng pti Tngg Sdn Bhd n 100% ptnin Jh Tngg Sdn Bhd n 100% agmju Sndiin Bhd n 100% pmdln plngi Sdn Bhd n 100% Tnh Smi Sdn Bhd n 100% Smi Sg Sdn Bhd n 100% Uni-ag plnttins (Tnggnu) Sdn Bhd n 100% M.p. plnttins Sdn Bhd n 70% Ldng Sungi rli Sdn Bhd 100% amln png (M) Sdn Bhd n 85% Tns Knylng Sdn Bhd n 70% Tdwinds Tnjung aln plnttin Sdn Bhd n 70% ah Bsm Sdn Bhd n 70% Ush Wwsn Sdn Bhd n 70% Mlu Gmilng Sdn Bhd n 60% amln plit psi Sdn Bhd

n

*72.57% Padiberas Nasional Berhad

n

100% Gula Padang Terap Sdn Bhd

n

60% Retus Plantation Sdn Bhd n

n

100% Sovereign Place Sdn Bhd

100% Mstus oil plm plnttin Sdn Bhd

#

n

n n n n

n

n n n n

100% Bs Ctin Sdn Bhd n 100% Dybst Sdn Bhd n 51% Hskic Fd Sdn Bhd n 51% Hck Ching Fdstu Sdn Bhd n 51% Bn Sy Tng Sdn Bhd n 51% Tng Sng Hut ric Tding Sdn Bhd n 95% Szic Sdn Bhd n 55% Sbic Sdn Bhd n 30% Linsin Tding Sdn Bhd 100% Bns pductin Sdn Bhd 100% Bns pjct & Dvlmnt Sdn Bhd 100% Bns Sd p Sdn Bhd 100% Bns Dminls Sdn Bhd n 49% Bns Fdstu Sdn Bhd 100% Bns ovss (L) Limitd n 20% In Nmn Bns (pvt) Limitd 100% Bns agtch Sdn Bhd 95% Bns Intntinl Tding Cmny Limitd 80% edn Bns Nsinl Sdn Bhd 61% Jsmin Fd Ctin Sdn Bhd n 100% Jsmin Fd (Ih) Sdn Bhd n 100% Jsmin Fd (al St) Sdn Bhd n 100% Jsmin Khidmt & Ht Sdn Bhd n 100% Jsmin Fd (Jh Bhu) Sdn Bhd

100% Jsmin Fd (Smbn) Sdn Bhd 100% Jsmin Fd (pi) Sdn Bhd n 100% Jsmin Fd (Kuntn) Sdn Bhd n 100% Jsmin ric Mill (Tunjng) Sdn Bhd n 100% Jsmin ric pducts Sdn Bhd n 51% JS Jsmin Sdn Bhd 60% e Bym Kt Sdn Bhd 51% Syikt Fiz Sdn Bhd 51% YHL Hlding Sdn Bhd n 100% YHL Tding (Kdh) Sdn Bhd n 100% YHL Tding (KL) Sdn Bhd n 100% YHL Tding (Mlk) Sdn Bhd n 100% YHL Tding (Sgmt) Sdn Bhd n 100% YHL Tding (Jh) Sdn Bhd n 100% YHL Tding (Tnggnu) Sdn Bhd 45% Unitd Mlyn Flu (1996) Sdn Bhd 20% Bn Hng B Hldings Sdn Bhd 52% 40% Sb Wngi Sdn Bhd 30% oeL rlty Hldings Sdn Bhd 30% Gdni Bkis (KL) Sdn Bhd 25% Bns Lgistics Sdn Bhd n n

n n n

n n n n n n

annual report 2009

33

2009

revenue of RM334 million rice division

proFILe oF DIreCTorS

DATO’ WIRA SYED ABDUL JABBAR BIN SYED HASSAN

Chimn Indndnt Nn-ecutiv Dict

YBhg. Dt’ Wi Syd abdul Jbb bin Syd Hssn,  Mlysin gd 70, ws intd s Indndnt Nn-ecutiv Dict nd Chimn  Tdwinds (M) Bhd n 29 octb 2008. H ls sits s Chimn  th ecutiv Cmmitt s wll s th Nmintin nd rmuntin Cmmitt  th Cmny. H hlds  Bchl  ecnmics dg m th Univsity  Wstn austli nd  Msts  Scinc dg in Mkting m th Univsity  Nwcstl-Un-Tyn, Unitd Kingdm. YBhg. Dt’ Wi Syd abdul Jbb ws viusly th Chi ecutiv oic  th Kul Lumu Cmmdity echng, th ecutiv Chimn  th Mlysi Mnty echng nd th Cmmdity nd Mnty echng. YBhg. Dt’ Wi Syd abdul Jbb is cuntly th Chimn  MMC Ctin Bhd, MarDeC Bhd, pdibs Nsinl Bhd, Tdwinds plnttin Bhd nd alin Ihsn rsucs Bhd. H is ls  bd mmb  th St publictins (M) Bhd nd KaF Discunts Bhd. H ttndd ll th ight bd mtings hld in th inncil y und viw. YBhg. Dt’ Wi Syd abdul Jbb’s intsts in th scuitis  th Cmny nd its subsidiis  s disclsd n g 202  this annul rt. H hs n mily ltinshi with ny dict nd/ substntil shhlds  Tdwinds (M) Bhd. H hs n cnlict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tic ncs.

36


encik Bky bin Hmzh,  Mlysin gd 52, ws intd s Nn-Indndnt Nn-ecutiv Dict  Tdwinds (M) Bhd n 9 ail 2007. H ws dsigntd s NnIndndnt ecutiv Dict nd th Gu Mnging Dict n 3 Fbuy 2010. H ls sits s  mmb  th ecutiv Cmmitt.

BAKRY BIN HAMZAH

Nn-Indndnt ecutiv Dict Gu Mnging Dict

H hd viusly svd s  dict  th Cmny m 22 august 2002 t 24 Mch 2003 b bing intd s Chi oting oc  th Cmny n 1 ail 2003. H lt bcm th Chi ecutiv oc  th Cmny ctiv 1 Dcmb 2005 until 8 ail 2007. encik Bky hlds  Bchl  ats dg m Univsity Mly nd bgn his c s assistnt Dict  MarketinginLembagaPadidanBerasNegara.Subsequently, h bcm th otins Mng  Bukhy Hldings Sdn Bhd b jining Ju Nig Sdn Bhd s Gnl Mng. In 1989, h jind KYD Bk Cnt Sdn Bhd s Gnl Mng i t bing th Hd  Businss Dvlmnt  a Muti Sdn Bhd. H ws ls th ecutiv Dict  Ltitud T Hlding Bhd nd  Dict  ointl Fd Industis Bhd nd MarDeC Bhd.

H is cuntly  dict  Tdwinds plnttin Bhd nd th Mnging Dict  pdibs Nsinl Bhd. encik Bky ttndd svn ut  ight bd mtings hld duing th nncil y und viw. H ds nt hld ny intst in th scuitis  th Cmny  its subsidiis. H hs n mily ltinshi wi th ny Dict nd/ substntil shhlds  Tdwinds (M) Bhd. H hs n cnfict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tc ncs.

In 1997, h ws intd s ecutiv Dict  CN asi Ctin Bhd until 2001. H ws ls invlvd in th inctin  Cmmc Dt Cm Sdn Bhd which undtk n  th Gvnmnt’s lctnic cmmc jcts, -plhn.

SYED AZMIN BIN SYED NOR

H cuntly sits n th bds  amtk Hldings Bhd, engt Gu Bhd, Tdwinds Ctin Bhd, Unitd Mlyn Lnd Bhd nd svl ivt limitd cmnis.

Nn-Indndnt Nn-ecutiv Dict

Tun Syd azmin ttndd ll th ight bd mtings hld duing th inncil y und viw. Tun Syd azmin bin Syd N,  Mlysin gd 46, ws intd s Nn-Indndnt Nn-ecutiv Dict  Tdwinds (M) Bhd n 28 Stmb 2005. H ls sits s  mmb  th audit Cmmitt  th Cmny. H hlds  Bchl  Scinc dg, mjing in Businss Mngmnt m th Univsity  Bkly, USa. Un his tun in 1984 until 1993, h ws invlvd in svl ivt businss vntus including tding in cmmditis, husing dvlmnt, mnuctuing, stck bking nd intntinl tding.

Tun Syd azmin is th bth  YBhg. Tn Si Dt’ Si Syd Mkht Shh bin Syd N, wh hlds indict mj shhlding in th Cmny. His intst in th scuitis  th Cmny  its subsidiis is s disclsd n g 202  this annul rt. H hs n cnlict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tic ncs.

annual report 2009

37


CHUAH SEONG TAT

H btind his Bchl  alid Scinc (Hns) dg m Univsiti Sins Mlysi nd  Msts  Businss administtin m th austlin Gdut Schl  Mngmnt, Univsity  Nw Suth Wls. Cuntly, h is ls  Dict  Tdwinds plnttin Bhd nd pdibs Nsinl Bhd. M. Chuh ttndd ll th ight bd mtings hld duing th inncil y und viw.


H ds nt hld ny intst in th scuitis  th Cmny  its subsidiis. H hs n mily ltinshi with ny Dict nd/ substntil shhlds  Tdwinds (M) Bhd. M. Chuh Sng Tt,  Mlysin gd 58, ws intd s Nn-Indndnt Nn-ecutiv Dict  Tdwinds (M) Bhd n 23 Jun 2006. H ls sits s  mmb  th ecutiv Cmmitt  th Cmny.

M. oi Tik Hut,  Mlysin gd 50, ws intd s Indndnt Nn-ecutiv Dict  Tdwinds (M) Bhd n 1 ail 2009 nd is ls th Chimn  th audit Cmmitt  th Cmny. H is ls  mmb  th Nmintin nd rmuntin Cmmitt sinc 27 Jnuy 2010. H hlds  Bchl  ecnmics dg m Mnsh Univsity, austli. H is  mmb  th Mlysin Institut  accuntnts nd Cpa austli. H bgn his c in 1984 with Msss. Hw & C (nw knwn s Msss. Mzs, Chtd accuntnts) b jining Mlysin Intntinl Mchnt Bnks Bhd (nw knwn s MIMB Invstmnt Bnk Bhd) in 1989. H ws th Hd  Ct Finnc t pngkln Scuitis Sdn Bhd (nw knwn s pM Scuitis Sdn Bhd) m 1993 t 1996. psntly, h is ls  Dict  Tdwinds plnttin Bhd, MMC Ctin Bhd, DrB-Hicm Bhd, edn otmbil Nsinl Bhd nd Zln Bhd. M. oi ttndd svn bd mtings sinc his intmnt duing th nncil y und viw.

38

H hs n cnlict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tic ncs.

OOI TEIK HUAT

Indndnt Nn-ecutiv Dict

H ds nt hld ny intst in th scuitis  th Cmny  its subsidiis. H hs n mily ltinshi with ny Dict nd/ substntil shhlds  Tdwinds (M) Bhd. H hs n cnfict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tc ncs.


H hs vst inc in th bnking industy nd hs hld svl sni tlis including Mnging Dict  Bnk Kjsm rkyt Mlysi Bhd, Gnl Mng, Cnsum Bnking  Mlyn Bnking Bhd nd ecutiv Dict  Unitd Mchnt Finnc Bhd.

KHALID BIN SUFAT

Indndnt Nn-ecutiv Dict

H hd viusly mngd Tnh Mins Mlysi Bhd, Furqan Business Organisation Berhad and Seacera Tiles Bhd s ecutiv Dict, Duty ecutiv Chimn nd Gu Mnging Dict, sctivly. Cuntly, h is  bd mmb  amtk Hldings Bhd, Bin pui Hldings Bhd, Mlysi Building Scity Bhd nd Uzm Bhd.

encik Khlid bin Sut,  Mlysin gd 54, ws intd s Indndnt Nn-ecutiv Dict  Tdwinds (M) Bhd n 1 ail 2009. H ls sits s  mmb  th audit Cmmitt  th Cmny. an ccuntnt by ssin, encik Khlid is  Fllw  asscitin  Chtd Ctid accuntnts, Unitd Kingdm,  mmb  th Mlysin Institut  accuntnts nd th Mlysin Institut  Ctid public accuntnts.

YM Dtuk r Shiuddin Hizn bin r Zinl abidin,  Mlysin gd 64, ws intd s Nn-Indndnt Nn-ecutiv Dict  Tdwinds (M) Bhd n 22 Fbuy 2010. H hlds  Bchl in agicultul ecnmics m th Univsity  Nw englnd, amidl, austli nd  Msts in Businss administtin m th Cthlic Univsity  Luvn, Blgium. H ls ttndd th pgm Mngmnt Dvlmnt t Hvd Businss Schl, Bstn, Unitd Stts  amic. YM Dtuk r Shiuddin Hizn is cuntly  bd mmb  Lmbg Kmjun Tnh pskutun (“FeLDa”) nd Fld Hldings Bhd. H ls sits n vius bds und th Fld Gu including Mlyn Sug Mnuctuing Cmny Bhd s wll s svl ivt cmnis. H hs svd Fld Gu  v 40 ys nd hs hld vius sitins including s advis nd Gu Mnging Dict.

encik Khlid ttndd svn bd mtings sinc his intmnt duing th nncil y und viw. H ds nt hld ny intst in th scuitis  th Cmny  its subsidiis. H hs n mily ltinshi with ny Dict nd/ substntil shhlds  Tdwinds (M) Bhd. H ls hs n cnfict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tc ncs.

YM DATUK R SHARIFUDDIN HIZAN BIN R ZAINAL ABIDIN Nn-Indndnt Nn-ecutiv Dict

H ds nt hld ny intst in th scuitis  th Cmny  its subsidiis. H hs n mily ltinshi with ny Dict nd/ substntil shhlds  Tdwinds (M) Bhd. H hs n cnfict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tc ncs.

annual report 2009

39


YBhg. Dtuk Hj. Ismil bin Hj. Hshim,  Mlysin gd 65, ws intd s Nn-Indndnt Nn-ecutiv Dict  Tdwinds (M) Bhd n 11 Mch 2010.

DATUK HJ. ISMAIL BIN HJ. HASHIM

H hlds  Dilm in accuntncy m rIDa Cllg, ptling Jy (nw knwn s Univsity Tknlgy Mara). YBhg. Dtuk Hj. Ismil is ls  Fllw  th Chtd Institut  Mngmnt accuntnts, Unitd Kingdm. H hd ls ttndd th Mngmnt Dvlmnt pgm t Hvd Businss Schl, Bstn, USa. YBhg. Dtuk Hj. Ismil bgn his c t Shll Mkting MalaysiaasaManagementTraineeandsubsequentlyjoined ICI Gu  Cmnis in Mlysi, Sing, Indnsi, Unitd Kingdm nd Cnd in 1966 s n accuntnt nd pjct Invstmnt anlyst. In 1973, h thn jind Tw Gu  Cmnis  Suth est asi Timb Industy s Dict  Finnc  Suth est asi. YBhg. Dtuk Hj. Ismil jind peTroNaS Gu  Cmnis s Finncil Cntll in 1974 nd ws lt intd t th Min Bd  peTroNaS s ecutiv Dict, Finnc m 1975 to1986;asVicePresident,Finance,PlanningandInformation Svics until 1990 nd s Sni Vic psidnt, Dwnstm until 1994.


YBhg. Dtuk Hj. Ismil is cuntly n indndnt bd mmb  Fld Hldings Bhd nd Swk ecnmic Dvlmnt Ctin. H ds nt hld ny intst in th scuitis  th Cmny  its subsidiis. H hs n mily ltinshi with ny Dict nd/ substntil shhlds  Tdwinds (M) Bhd. H hs n cnfict  intst in ny businss ngmnt with th Cmny nd hs n cnvictin  ny nc within th st tn ys th thn tc ncs.

H svd s Nn-ecutiv Dict, aNCoM Bhd m 1995 t 1997 nd bcm th Chi ecutiv oc  aNCoM engy & Svics Sdn Bhd until his timnt in 2004.

40


MaNaGeMeNT TeaM

1

1.

Bakry bin Hamzah Gu Mnging Dict/ Mnging Dict ric Divisin

2.

Chan Seng Fatt Chi ecutiv oic plnttin Divisin

3.

Tuan Ngah bin Tuan Baru Mnging Dict Sug Divisin

4.

Mohd Nazri bin Shari Gu Chi Finncil oic

5.

Mohd Azanuddin bin Salleh Sni Gnl Mng Finnc

6.

Ibrahim bin Husian Gnl Mng pjct/otins

7.

Kenny Lim Yin Meng Gnl Mng Intnl audit

8.

Azmin bin Abidin Duty Gnl Mng Humn rsucs & administtin

9.

Ainul Arah binti Baharim Sni Mng risk Mngmnt

10. Mohamad Aendi bin Yuso Cmny Scty/Lgl

2

3

4

5

6

7

8

9

10

annual report 2009

41

strategic investment

achieving returns We will strive to make benecial and sound investments in areas o innite potential and to yield greater returns whilst ensuring our brand exudes the hallmark o excellence and prestige.

STaTeMeNT oN CorporaTe GoVerNaNCe

Th Bd  Dicts  Tdwinds (M) Bhd (“TWS”) (“Bd”) is cmmittd in nsuing th highst stndds  ct gvnnc  lid thughut th TWS Gu (“Gu”). Th Bd ully suts th incils  Ct Gvnnc (“pincils”) s lid dwn in th Mlysin Cd n Ct Gvnnc (“Cd”) nd stivs t dt such incils.

Th Bd is ls cmmittd t nsu tht gd

Th Bd svs mtil mtts t itsl  dcisin

gvnnc is ctisd thughut th Gu in ll

which includ th vll Gu sttgis nd dictins,

scts  its businss dlings, dislying intgity nd tnsncy with th bjctiv t sgud shhlds’

acquisition and divestment policies, approval of major citl nditu jcts, lns nd budgts nd

invstmnts nd ultimtly nhncing shhld vlu.

signiicnt inncil mtts s wll s humn citl licis including succssin lnning  t mngmnt.

Th Bd is lsd t discls th Gu’s lictin  th pincils s st ut in pt 1  th Cd nd usunt

pils  dicts which  sntd m g 36 t

toParagraph15.25of theMainMarketListingRequirements

40  this annul rt dmnstt thi ng 

 Bus Mlysi Scuitis Bhd (“MMLr”) duing th

incs.

inncil y ndd 31 Dcmb 2009 u t th dt  this Sttmnt.

BOARD BALANCE Th Bd cmiss cutiv nd nn-cutiv dicts nd cuntly hs ight dicts md  n indndnt

DIRECTORS

nn-cutiv chimn, u nn-indndnt nncutiv dicts, tw indndnt nn-cutiv

THE BOARD

dicts nd n nn-indndnt cutiv dict.

Th Bd is snsibl  th vll mnc  th Gu by mintining ull nd ctiv cntl v sttgic, inncil, tinl, cmlinc nd gvnnc issus. Th Bd cmiss mmbs with vius ssinl bckgunds, binging dth nd

Th mmbs, which  m thn n-thid  th Bd,  indndnt dicts. This is in cmlinc with th MMLr. N individul  smll gu  individuls

divsity in inc, tis nd sctiv t th

dmints th dcisin-mking  th Bd nd th numb  dicts ily lcts th bst intsts  th

Gu’s tins nd ultimtly, th nhncmnt 

shhlds’ invstmnt.

lng-tm shhld vlu.

44


Cllctivly, th dicts bing  wid sctum  businss cumn, skills nd sctivs ncssy  th dcisin -mking css. Th divsity nd dth  knwldg d by th dicts lct th cmmitmnt  th Cmny t nsu ctiv ldshi nd cntl  th

Th is  cl divisin  snsibilitis btwn th ls  th Chimn nd th GMD t nsu  blnc  w nd uthity nd n individul hs unttd ws  dcisin. Th Chimn is imily snsibl  th dly cnduct nd wking  th Bd whilst th

Gu. Th nn-cutiv dicts vid cnsidbl dth  knwldg cllctivly gind m incs

GMD is snsibl  th vll tins  th businss,

in  vity  ublic nd ivt cmnis. Th nncutiv dicts ssss th ncssy clib nd

Bd licis nd sttgis. Th GMD is ssistd by th

cdibility s wll s ncssy skills nd incs binging thi indndnt judgmnt n th issus  sttgy, mnc nd suc, including ky

 th Gu.

intmnts nd stndd  cnduct. Th indndnt nn-cutiv dicts vid unbisd nd indndnt viws in nsuing tht th sttgis sd by th mngmnt  ully dlibtd nd mind, nt nly in th intsts  th Gu but ls  th stkhlds. Th l  th Gu Chi ecutiv oic (“GCeo”) hs been relinquished with effect from 3 February 2010 and a nw tli, Gu Mnging Dict (“GMD”), ws ctd n vn dt. Th GMD ssums th ls nd

gnistinl ctivnss nd th imlmnttin  mngmnt tm in mnging th dy-t-dy businss

SUPPLY OF INFORMATION Bd mtings  schduld in dvnc  th nw inncil y t nbl dicts t ln nd ccmmdt th y’s mtings int thi schdul. Th Bd mts t lst si tims yly. additinl mtings  hld s nd when required. During the financial year under review, ight Bd mtings w hld including tw dditinl meetingspertainingtotheacquisitionofPadiberasNasional Bhd (“BerNaS”). Dtils  ttndnc t th mtings  s llws:

snsibilitis  th GCeo.

Board o Directors

Attendance

Dt’ Wi Syd abdul Jbb bin Syd Hssn

8 ut  8

Bky bin Hmzh

7 ut  8

Syd azmin bin Syd N

8 ut  8

Chuh Sng Tt

8 ut  8

oi Tik Hut (appointed w.e.f. 1 April 2009)

7 ut  7

Khlid bin Sut (appointed w.e.f. 1 April 2009)

7 ut  7

Dtuk r Shiuddin Hizn bin r Zinl abidin (appointed w.e.f. 22 February 2010)

nt licbl

Dtuk Hj. Ismil bin Hj. Hshim (appointed w.e.f. 11 March 2010)

nt licbl

encik ahmd bin abu Bk (resigned w.e.f. 1 April 2009)

1 ut  1

D. Shiuddin bin abdul Hmid (resigned w.e.f. 1 April 2009)

1 ut  1

Tn G Si (resigned w.e.f. 6 January 2010)

8 ut  8

B Yw Lng (resigned w.e.f. 6 January 2010)

8 ut  8

annual report 2009

45


Th Bd is unishd with inmtin in  m nd   quality appropriate to enable it to discharge its duties relating to all matters that requires its attention and dcisin-mking in  timly mnn. psls cmising cmhnsiv nd blncd inncil nd nn-inncil inmtin  ncsultd in th s cving mngst ths, sttgis, tinl nd gulty, mkting nd humn suc issus t nbl th Bd to examine both the quantitative and qualitative aspects  th businss. Minuts  mtings  duly cdd nd tht cnimd by th Chimn  th mting. all dicts have the right to make further enquiries where deemed ncssy. Th th indndnt dicts  indndnt  mngmnt nd  m ny businss  th ltinshis tht culd mtilly int with th cis  thi indndnt judgmnt. Thy hv th clib t nsu tht th sttgis sd by th mngmnt  ully dlibtd nd mind in th lng-tm intst  th Gu s wll s th shhlds, mlys nd custms. Dicts hv unhindd ccss t th dvic nd svics  th cmny scty wh is snsibl  nsuing tht Bd mting cdus  dhd t nd tht th licbl uls nd gultins  cmlid with. Th dicts my, whth s  ull Bd  in thi individul ccitis, btin indndnt ssinl dvic, wh ncssy nd it, in uthnc  thi dutis t th Cmny’s ns.

APPOINTMENTS TO THE BOARD Th Cmny hs in lc  ml nd tnsnt cdu  th intmnt  nw dicts t th Bd. all nmins  initilly cnsidd by th Nmintin nd rmuntin Cmmitt (“NrC”) tking into account the required mix of skills, experiences and other qualities prior to putting forward a recommendation t th Bd  its vl.

46

RE-ELECTION In ccdnc with th visins  th Cmny’s aticls  asscitin, ll dicts wh  nwly intd by th Bd  subjct t lctin by th shhlds t th ist annul Gnl Mting (“aGM”) llwing thi intmnts. additinlly, t lst n-thid  th Bd shll ti m ic t lst nc in th ys but shll b ligibl  -lctin t vy aGM. This vids shhlds th tunity t vlut dicts’ mncs nd ls mts ctiv Bd. pusunt t Sctin 129  th Cmnis act, 1965 (“act”), directors over the age of70 are also requiredto retire but shll b ligibl  intmnt.

DIRECTORS’ REMUNERATION THE LEVEL AND MAKE-UP OF REMUNERATION Dicts  muntd t lvls which llw th Cmny t ttct nd tin dicts with th lvnt inc nd tis t mng th Gu succssully. Th muntin lcts th lvl  inc nd tis thy bing with thm nd th munt  snsibilitis undtkn by thm.

PROCEDURE Th Bd, thugh its NrC, nnully viws th mnc  th cutiv dict s  lud t dtmining his nnul muntin, bnus nd th bnits. In dischging this duty, th NrC vluts th cutiv dict’s mncs ginst th bjctivs st by th Bd, thby linking his muntin t mnc. Th muntin  nn-cutiv dicts is viwd by th Bd s  whl t nsu tht it is lignd t th mkt nd t thi dutis nd snsibilitis.


DISCLOSURE a summy  th muntin  th dicts (including m cmnis within th Gu) duing th inncil y und viw is s llws:-

Nn-ecutiv Dicts

Fees

Emoluments

Beneit-in-Kind

Total

rM155,520

rM1,328,000

rM25,000

rM1,508,520

Nt: (i) Inclusiv  s nd mlumnts civd m subsidiis. (ii) Th ws n cutiv dict n th Bd duing th inncil y und viw. Th numb  Dicts whs ttl muntin lls within th llwing bnds is s llws:-

Range o Remuneration per annum

Number o Non-Executive Directors

rM1 t rM50,000

4

rM50,001 t rM100,000

2

rM100,001 t rM150,000

2

rM150,001 t rM200,000

0

rM200,001 t rM250,000

0

rM250,001 nd bv

2

Nts: (i)

Th ttl muntin includs slis, bnuss nd mting llwncs civd m subsidiis.

(ii)

Th ws n cutiv dict n th Bd duing th inncil y und viw.

SHAREHOLDERS DIALOGUE BETWEEN COMPANY AND INVESTORS Th Bd cgniss th imtnc  tnsncy nd ccuntbility t its shhlds nd mintins n ctiv cmmunictin licy tht nbls bth th Bd nd th mngmnt t cmmunict ctivly with its shhlds nd th ublic. an imtnt sct  n ctiv nd cnstuctiv cmmunictin licy is th timlinss in dissminting inmtin t shhlds nd invsts.

In dditin t th vius nnuncmnts md duing th inncil y und viw in sct  ct dvlmnts  th Gu, th timly ls  inncil results on a quarterly basis provides shareholders with an vviw  th mnc nd tins  th Gu. Cis  th ull nnuncmnt  sulid t th shareholders andmembers of thepublic uponrequest. The ull inncil sults nd nnuncmnts md by th Cmny cn ls b btind m Bus Mlysi Sc uitis Bhd (“Bus Mlysi” )’s wbsit t www.busmlysi.cm s wll s th Cmny’s wbsit t www.twinds.cm.my.

annual report 2009

47


Th wbsit  th Cmny ls vids cnvnint ccss t th ltst ct inmtin  th Gu.

THE AGM Th aGM, usully hld in Jun ch y, is th incil um  dilgu with shhlds. Shhlds wh  unbl t ttnd  llwd t int is t ttnd nd vt n thi bhl. Mmbs  th Bd, th sni mngmnt  th Gu, s wll s th Cmny’s auditors are present to answer questions raised during the mting. additinlly,  ss cnnc is hld immditly t th aGM whby th Chimn bis themediaontheresolutionspassedandanswersquestions cncning th Gu.

Th Bd tks snsibility in snting  blncd nd mningul ssssmnt  th Gu’s inncil mnc nd scts. Th inncil sttmnts  dwn u in ccdnc with th visins  th act, nd th licbl vd Finncil rting Stndds in Mlysi. a sttmnt n th dicts’ snsibilitis in ing th inncil sttmnts is st ut stly n g 51  this annul rt.

INTERNAL CONTROL Th Sttmnt n Intnl Cntl s st ut n gs 55 t 56  this annul rt vids n vviw  th stt  intnl cntl  th Cmny.

RELATIONSHIP WITH AUDITORS an etdiny Gnl Mting (“eGM”)  th Cmny washeldon28October2009ontheacquisitionofBERNAS. Th eGM vidd shhlds with th tunity t ticit in th discussin lting t th sd acquisitionandlatervotedonthesame.Apressconference ws hld sn t th cnclusin  th eGM.

Th tnl udits, Msss. anuul azizn Chw & C., hs cntinud t t t mmbs  th Cmny n thi indings which  includd s t  th Cmny’s inncil ts ch y. In s ding, th Cmny hs stblishd  tnsnt ngmnt with th udits t meet their professionalrequirements.The Audit Committee ls viws with th udits, sults  th nnul udit, th udit t nd th mngmnt ltt including th mngmnt’s snss thn. at lst tw mtings with th udits w hld in th bsnc  th management. The quarterly results of the Company are ls viwd by th audit Cmmitt.

DIRECTORS’ TRAINING all mmbs  th Bd hv ttndd nd cmltd th Mndty accdittin pgmm in cmlinc with th MMLr. Th Cmny cgniss th imtnc nd nd  cntinuus ductin in d  Bd mmbs t gin btt insights int th tchnlgicl dvncs, gulty udts nd mngmnt sttgis. Dicts  ncugd t ttnd it nd lvnt tining gmms, tlks, smins, wkshs nd cnncs t nhnc nd t k bst with nw dvlmnts in th businss nvinmnt. amng th smins nd cnncs ttndd by Dicts duing th inncil y und viw :-

ACCOUNTABILITY AND AUDIT FINANCIAL REPORTING Th Bd is ssistd by its audit Cmmitt in viwing inmtin t b disclsd thugh nnul inncil statements and announcements of quarterly results to s ha re h ol d er s  t o  e ns ur e  a c cu ra c y,  a d eq ua c y a nd cmltnss.

48

i.

High Fum  Dicts  Listd Issus in enhncing Corporate Governanceby Bursa Malaysia;


ii.

iii.

iv.

v. vi.

vii.

Hl Dy Tlk n th outlk  th oth Hl  2009 - 2010 Glbl ecnmic Cisis – Imct n Mlysi by AsiaChain Management Sdn Bhd;

xi.

BoardExcellence ForumbyLexisNexis;

xii.

Forumon FRS – FinancialInstruments Standard;

Smin n Ky amndmnts n th Dicts’ Obligations under the Listing Requirements of Bursa Mlysi Scuitis Bhd nd Undstnding th Directors: BoardEffectiveness & Managing Risk;

iii.

Th Nn-ecutiv Dict Dvlmnt Sis – Is it Wth th risk? By picWthusCs & Scuity Industry DevelomentCorporation;

iv. Bd ectiv nss: Undstndin g th rls & Functins  th Nminting & rmuntin Committeeby Bursatra SdnBhd (“Bursatra”);

ecnmic Tumil: THrIVe, Dn’t Just Suviv by AnuarulAzizanChew&Co.andMorisonInternational;

xv.

NationalAccountants Conference 2009 byMIA;

RiskManagementBest PracticesbyBursatra;

vi.

eclusiv Sttgy Sssin – Glbl Finncil Cisis with Tun Dr. Mahathir;

Th Futu Islmic Finncil Svics by Islmic Financial Services Board, Singapore;

vii. Lding Chng in Tuch Tims – pss Jhn Kotters AsiaTour 2009;and

MaICSa annul Cnnc 2009 – Shing th Future Corporate Professional;

viii. Wld ric Cmmc, Bli, Indnsi.

viii.

Ct Gvnnc Guid – Twds Bdm ecllnc by Mlysin Institut  accuntnts (“MIA”);

Th mngmnt hd ls gnisd n in-hus smin  dicts nd sni mngmnt  th Gu n 16 nd 17 Dcmb 2009 n th llwing:-

i.

an Insight Sssin int th ecnmy with pss Danny Quah;

i.

Udts n Ky amndmnts n th Dicts’ obligtins und th Nw Min Mkt Listing Requirements of Bursa MalaysiaSecurities Berhad; and

.

Fum n FrS 139 Finncil Instumnts: rcgnitin and Measurement by Bursa Malaysia;

ii.

Twds Bdm ecllnc – Mnging rltd pty Tnsctins nd Cnlict  Intst.

Th dicts  ls ncugd t visit vius tin sits  th Gu s t  thi tining nd dvlmnt gmm t s nd miliis thmslvs with th tins nd issus dictly cting th businsss  th Gu.

BOARD MEETINGS eight bd mtings w hld duing th inncil y und viw whby vius mtts including th Cmny’s inncil sults, th businss ln nd dictins  th Cmny w discussd nd dlibtd. Dtils  th dict’s ttndnc t th bd mtings  s st ut n g 45  this annul rt. all dicts have fulfilled the requirements of the MMLR in respect of bd mting ttndnc.

annual report 2009

49


THE BOARD COMMITTEES

c.

Th Bd hs, wh it, dlgtd sciic snsibilitis t its Bd Cmmitts nmly, th audit Cmmitt, th ecutiv Cmmitt nd th Nmintin nd rmuntin Cmmitt. Ths cmmitts hv bn givn th uthity t min ticul issus within thi tms  nc nd t t th Bd with thi cmmndtins. Th ultimt snsibility  th inl dcisin n ll mtts hwv, lis with th Bd.

a.

Th NrC which ws stblishd n 23 Nvmb 2001 is snsibl  cmmnding nw nmins with th ncssy skills, inc nd cmtncis t b intd t th Bd s wll s cmmitts  th Bd. Th NrC which cmiss th mmbs ls ssists th Bd in ssssing th ctivnss  th Bd s  whl, its cmmitts s wll s th mnc  ch isting dict. Th NrC is ls snsibl  dvling th licy n th muntin  th cutiv dict nd cmmnding th muntin nd cmnstin  cutiv dict nd sni mngmnt t th Bd.

Audit Committee (“AC”) Th aC which ws stblishd n 8 Nvmb 1993 t ssist th Bd in th cutin  its snsibilitis cmiss th mmbs,  mjity  whm  indndnt. all mmbs  nn-cutiv dicts. Th aC is gvnd by  wittn tms  nc which dls clly with its uthity nd dutis. Th Tms  rnc  th aC tgth with its t  sntd m g 57 t 61  this annul rt.

Th mmbs  th NrC  s llws:• 

•



•

Th mmbs  th aC  s llws:•



• •



•



•

b.

Nomination and Remuneration Committee (“NRC”)

•

Ooi Teik Huat (Chairman) (appointed w.e.f. 1 April 2009) Syed Azmin bin Syed Nor Khalid bin Sufat (appointed w.e.f. 1 April 2009) Ahmad bin Abu Bakar (resigned w.e.f. 1 April 2009) Dr. Sharifuddin bin Abdul Hamid (resigned w.e.f. 1 April 2009)



•

Dato’ W ira S yed A bdul J abbar b in S yed H assan (Chimn) Ooi Teik Huat (appointed w.e.f. 27 January 2010) Khalid bin Sufat (appointed w.e.f. 3 February 2010) Boo Yew Leng (resigned w.e.f. 6 January 2010) Bakry bin Hamzah (resigned w.e.f. 3 February 2010)

Th Chimn, Dt’ Wi Syd abdul Jbb bin Syd Hssn, cts s th sni indndnt nn-cutiv dict. any mtts cncning th Gu my b cnvyd t him t:-

Executive Committee (“EXCO”) Th exCo which ws stblishd n 10 octb 2007 t ssist th Bd in vsing th mngmnt nd tins  th Gu s wll s diting th dcisin-mking css cmiss th mmbs nd is gvnd by  wittn cht which dls clly with its uthity nd dutis.

Tdwinds (M) Bhd Lvl 12, Mn HLa N. 3, Jln Ki png 50450 Kul Lumu Tl: 603 2179 7777 F: 603 2161 1632 Shhlds my t ny tim, cntct th cmny scty t th gistd ddss nd tlhn numb  th Cmny s mntind, t cnvy ny concern or makequeries.

Th mmbs  th exCo  s llws:•  

• •

Dato’ W ira S yed A bdul J abbar b in S yed H assan (Chimn) Bakry bin Hamzah Chuah Seong Tat 

50

This sttmnt is md in ccdnc with  slutin md by th Bd dtd 28 ail 2010.


STaTeMeNT oN DIreCTorS’ reSpoNSIBILITY

TheCompaniesAct,1965(“Act”)requiresthedirectorstoprepareafinancialstatementswhichgive  tu nd i viw  th stt  is  th Cmny nd t th nd  ch inncil y, to prepare together with the results and cash flows. As required by the Act and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the financial statements have been d in ccdnc with th licbl vd Finncil rting Stndds in Mlysi nd visins  th act. Th dicts cnsid tht in ing th inncil sttmnts  th inncil y ndd 31 Dcmb 2009 st ut m g 77 t 191  this annul rt, th Gu hs usd it ccunting licis, cnsistntly lid nd sutd by snbl nd udnt judgmnts nd stimts. Th dicts hv th snsibility in nsuing tht th Cmny nd th Gu mintin ccunting cds which discls with snbl ccucy th inncil sitin  th Cmny nd th Gu which nbl thm t nsu tht th inncil sttmnts  in cmlinc with th inncil ting stndds in Mlysi nd th act. Th dicts hv th vll snsibilitis  tking such sts s  snbly vilbl t thm t sgud th ssts  th Gu nd t vnt nd dtct ud s wll s th igulitis. This sttmnt is md in ccdnc with  slutin  th Bd  Dicts dtd 28 ail 2010.

annual report 2009

51

aDDITIoNaL CoMpLIaNCe INForMaTIoN

Th llwing dditinl inmtin  th inncil y ndd 31 Dcmb 2009 hs bn vidd in cmlinc with the MainMarket Listing Requirements of Bursa Malaysia SecuritiesBerhad (“Bursa Malaysia”):-

1.

2.

Non-Audit Fees

Relationship

Th munt  nn-udit s id t th Gu’s tnl udits ws rM47,500.00.

Interested Directors and Major Shareholders psctiv Ln (M) Sdn Bhd (“pLSB”), Kln Vntus Sdn Bhd (“KVSB”) nd St Tminl (Jh) Sdn Bhd (“STJSB”) hold 30.04%, 8.86% and 4.07% equity intst in th Cmny, sctivly. Tn Si Dt’ Si Syd Mkht Shh bin Syd N (“TSDSSM”) hlds 99.9% equity interest in Restu Jernih Sdn Bhd (“RJSB”), th hlding cmny  pLSB. H ls hlds 99.9% equity interest in both KVSB and Indra Cita Sdn Bhd (th hlding cmny  STJSB), sctivly. In dditin, th dicts nd shhlds  GBSB, nmly ahmd ridzun bin Dhi nd Dtuk azizn bin ayb  sns cnnctd t Syd azmin bin Syd N (“SaSN”) wh is  nn-indndnt nncutiv dict  th Cmny s thy  bth ccustmd t ct in ccdnc with SaSN’s dictins nd instuctins. SaSN is th bth  TSDSSM. Ntwithstnding tht TSDSSM nd SaSN hv n intst in WT, by vitu  TSDSSM’s indict intst in th Cmny nd SaSN’s indict intst in BerNaS, pLSB, KVSB nd STJSB w dmd intstd in th psls.

Material Contracts Involving Directors and Major Shareholders ()  Sh Sl agmnt dtd 28 august 2009 btwn Tdwinds (M) Bhd (“TWS”  th “Cmny”) nd Wng Tk Cmny Limitd (“WT”) for the acquisition of 148,281,100 ordinary shs  rM1.00 ch in pdibs Nsinl Bhd (“BerNaS”), snting 31.52%  th ttl issud nd id-u sh citl  BerNaS m WT   ttl uchs cnsidtin  R M308,424,688.00. The said ac quisition was cmltd n 2 Nvmb 2009. (b)  Sh Sl agmnt dtd 28 august 2009 btwn TWS nd Gndingn Bsdu Sdn Bhd (“GBSB”) for the acquisition of 104,599,485 diny shs  rM1.00 ch in BerNaS, snting 22.24%  th ttl issud nd idu sh citl  BerNaS m GBSB   ttl uchs cnsidtin  rM217,566,928.80. Th said acquisition was completed on 20 January 2010. In cnnctin with th bv tnsctin, th Gvnmnt  Mlysi (“Gvnmnt”), Budy Gnsi (M) Sdn Bhd (“BGSB”) nd th Cmny ntd int  Nvtin agmnt dtd 30 Dcmb 2009  th tns  ll th ights, intsts, bnits, ntitlmnts, mdis nd ssumtins  ll bligtins, libilitis nd budns  BGSB und th pivtistin agmnt btwn BGSB nd th Gvnmnt dtd 18 Jnuy 1996 t th Cmny. (cllctivly d t s th “psls”)

52

Bky bin Hmzh,  nn-indndnt cutiv dict nd th gu mnging dict  th Cmny is ls  dict  BerNaS, BGSB nd rJSB nd ws dmd intstd in th psls. Chuh Sng Tt is  ltd ty t TSDSSM by vitu  him bing  dict  th Cmny nd Bukhy Sdn Bhd, an indirect subsidiary of KHSB Equity Sdn Bhd in which SaSN is ls  dict.

3.

Imposition o Sanction/Penalties on the Company and its Subsidiaries Th ws n snctin  nltis imsd n th Cmny, its subsidiis, bd mmbs nd mngmnt.


4.

Revaluation o Landed Properties

9.

Th Gu ds nt vlu its lndd tis s its incil lndd tis  gicultul lnd usd  th cultivtin  lm il.

5.

N it gunt ws givn by th Cmny.

10. Status o Utilisation o Proceeds Raised rom Corporate Proposal

Share Buy-backs

Th ws n ct sl invlving th ising  unds.

Th Cmny did nt uchs ny  its wn shs.

6.

11. Public Shareholding Spread

Option, Warrants or Convertible Securities

Th Cmny is in cmlinc with th public Shareholding Spread requirement of Bursa Malaysia.

Th Cmny did nt  ny tin  wnt.

7.

American Depository Receipt (ADR) or Global Depository Receipt (GDR) Programme

12. Contracts Relating to Loans Th w n cntcts lting t lns by th Cmny invlving dicts nd mj shhlds.

Th Cmny ds nt sns ny aDr  GDr gmm.

8.

13. Disclos ure o Recurre nt Rel ated Pa rty Transactions o a Revenue or Trading Nature (“RRPT”)

Proit Estimates, Forecast or Projection Th Cmny did nt mk ny ls n th it stimt, cst  jctin  th inncil y.

Nature o Transaction

Proit Guarantee

Vendor

Th rrpT ntd int by th Cmny duing th inncil y ndd 31 Dcmb 2009  s llws:-

Purchaser

Interested Directors/ Major Shareholders

Aggregate value o transactions or the 12-month period rom 1 Jan 2009 to 31 Dec 2009 (RM’000)

puchs  ntul gs

Gs Mlysi Sdn Bhd

CSr

31,159

pvisin  lgistics nd tnsttin svics

Jp Lgistics Sdn Bhd

CSr

5,727

Sl  ind sug

GpT

Bukhy Sdn Bhd

agncy svics  th sl nd distibutshi  ind sug nd mlsss

Bukhy Sdn Bhd

CSr

pvisin  tnsttin svics

SKS Tnst Sdn Bhd

GpT

annual report 2009

Intstd Mj Shhlds:TSDSSM, rJSB, pLSB

203,610

Intstd Dicts:SaSN, CST, aKMK, BH

2,880

3,811

53

aDDITIoNaL CoMpLIaNCe INForMaTIoN

13. Disclosure o Recurrent Related Party Transactions o a Revenue or Trading Nature (“RRPT”) (cont’d) Th rrpT ntd int by th Cmny duing th inncil y ndd 31 Dcmb 2009  s llws:- (cnt’d)

Nature o Transaction

Sl  cud lm il nd lm knl

Vendor

rtus plnttin Sdn Bhd

Purchaser

Interested Directors/ Major Shareholders

Bintulu edibl oils

Aggregate value o transactions or the 12-month period rom 1 Jan 2009 to 31 Dec 2009 (RM’000) 155,587

Intstd Mj Shhlds:Gnll, Tlh, FFM, ppB Suly  lbu, mtils nd wking tls  ngining wks, instlltin, bictin, suvisin  bil, insctin nd cnsulting svics

Minsc engining Svics Sdn Bhd

CSr

2,121 Intstd Dicts:BYL, TGS

Abbreviations: aKMK BH BYL CSr CST FFM GpT Gnll pLSB ppB rJSB SaSN Tlh TGS TSDSSM

ahmd Kmil bin p M Must Kml Bky bin Hmzh B Yw Lng Cntl Sugs riny Sdn Bhd Chuh Sng Tt FFM Bhd Gul pdng T Sdn Bhd Gnll Hldings Sdn Bhd psctiv Ln (M) Sdn Bhd ppB Gu Bhd rstu Jnih Sdn Bhd Syd azmin bin Syd N Tlh Sdn Bhd Tn G Si Tn Si Dt’ Si Syd Mkht Shh bin Syd N

54


STaTeMeNT oN INTerNaL CoNTroL

Th bd  dicts (“Bd”) is snsibl  th Gu’s systm  intnl cntl. Th systm is dsignd t mt th Gu’s businss bjctivs nd sgud th Gu’s ssts, shhlds’ invstmnts, intsts  custms, gults nd mlys in ccdnc with Sctin 167a  th Cmnis act, 1965. Th intnl cntl systm cvs th s  isk mngmnt, innc, tins, mngmnt inmtin systm nd cmlinc with th lvnt lws nd gultins.

Mngmnt is snsibl t inculct  isk-wnss cultu nd cntinuusly viw th isting isk mngmnt mwk t nhnc isk wnss  mnging isks nd intnl cntl, nsuing cmlinc with licbl lws nd gultins s wll s th licis dtd by th Bd. Th llwing ky tus hv bn inctd int th Gu’s isk mngmnt mwk:.

Th systm  intnl cntl invlvs ch ky businss unit in th Gu, its mngmnt nd th Bd. It is dsignd t mt th Gu’s ticul nds nd t mng th isks t which it is sd in usuit  its businss bjctivs. Th Bd cknwldgs tht isks cnnt b cmltly limintd. Th systm by its ntu cn nly vid snbl nd nt bslut ssunc ginst mtil missttmnt, tinl ilu, ud  lss.

Th isk ts  ch subsidiy cmny  th Gu  udtd bi-nnully in ch inncil y. rts n isk il  th Gu w sntd t th risk Mngmnt Cmmitt  viw nd tht t th audit Cmmitt  its nwd ting t th Bd n signiicnt isks s wll s cntls vilbl t mitigt ths isks  theBoard’s consideration; and

RISK MANAGEMENT a ml gu-wid ntis isk mngmnt mwk cving th Gu’s c businss ctivitis t idntiy, vlut nd mng signiicnt businss isks tht my ct th chivmnt  its businss bjctivs hd bn vd by th Bd nd imlmntd. This ntis isk mngmnt mwk is cntinuusly viwd by th audit Cmmitt tgth with th Bd  its adequacy and effectiveness. The Audit Committee is ssistd by th risk Mngmnt Cmmitt which cmiss th Gu Mnging Dict, Gu Chi Finncil oic, Hds  oting Divisins nd th risk oic. Th dutis  th risk Mngmnt Cmmitt  s llws:i. ii. iii. iv.

Overseeing risk managementactivities ofthe Group; rcmmnding it isk mngmnt procedures; Measuringmethodologiesacrossthe Group; and Idntiyi ng nd mnging sttgic nd ky tinl isks.

Th Gu ims its n-ging csss  isk mngmnt by cnducting sssins n tining wnss nd isk ssssmnt csss nd mthdlgis. Th gu-wid isk ssssmnt csss includ -vluting isting ky isk s nd idntiying nw ky isk s, tntil imct nd liklihd  ths isks ccuing, cntl ctivnss nd dting th it ctin plans to mitigate those risks;

b.

Cntinuus vlutin is cid ut by th mngmnt thughut th vius divisins, subsidiis nd dtmnts n ky isks cd by th Gu, th tntil imct nd liklihd  ths isks ccuing, cntl ctivnss nd ctin lns t mng ths isks.

OTHER KEY ELEMENTS OF INTERNAL CONTROL at m th bv, th th ky lmnts  th Gu’s intnl cntl systm which hs bn viwd by th Bd  dscibd blw:.

annual report 2009

Sciic snsibilitis hv bn dlgtd t th lvnt bd cmmitts which hv wittn tms  nc. Ths cmmitts hv th uthity t min ll mtts within thi sc  snsibilitis nd t t th Bd with thi cmmndtins. Th ultimt snsibility  th inl dcisin n ll mtts hwv, lis with th Board;

55

STaTeMeNT oN INTerNaL CoNTroL

b.

Th mngmnt  th vius cmnis in th Gu is dlgtd t th sctiv hd  tin nd thi mngmnt tms, whs ls, snsibilitis nd uthity limits  st by the respectiveboard of directors;

Fml cdus  ut in lc t ctiy wknsss idntiid in th Intnl audit rts. h.

Th audit Cmmitt hlds gul mtings t dlibt th udit indings, cmmndtins, mngmnt snss nd cctiv ctins  imvmnt in sct  th intnl cntl systm. Th minuts  mting  th audit Committee are tabled to the Board for notation; nd

i.

Th audit Cmmitt mts gully with th sni mngmnt, th hd  th GIaD nd th tnl udits t viw th Cmny nd th Gu’s inncil ting, th ntu, sc nd sults  udit viw nd th ctivnss  th systm  intnl cntl. Th audit Cmmitt mts th tnl udits withut th snc  mngmnt t lst twic yly.

c.

Th mngmnt is snsibl  th idic viw nd stmlining  licy nd cdu mnuls t b dtd Gu-wid. Ths  sulmntd by ting stndds st by th management for applications across the Group;

d.

Th  sciic cdus  bth citl nd revenue expenditures;

.

a dtild budgting css is stblishd  ll ky ting cmnis within th Gu t preparetheirannualbudgetswhicharesubsequently discussedand approved by theBoard;

.

rgul nd cmhnsiv mngmnt ts  vidd t th Bd  mniting mnc ginst th vd budgt cving ll ky inncil nd tinl indicts s wll s compliancewithallapplicablerulesandregulations;

Th ctivitis  th audit Cmmitt duing th inncil y ndd 31 Dcmb 2009  st ut in th rt  th audit Cmmitt m g 57 t 61  this annul rt.

g.

Th Gu Intnl audit Dtmnt (“GIaD”) ws st u by th Bd t vid indndnt assurance on the adequacy of risk management, internal control and governance systems;

RELATIONSHIP WITH THE AUDITORS

Th GIaD cis ut gul viws n businss processesto assess theadequacy andeffectiveness  intnl cntl, cmlinc with gultins nd th Gu’s licis nd cdus bsd n  isk-bsd udit ch. rsults  such viws  td t th audit Cmmitt nd ultimtly t th Bd.

Th l  th audit Cmmitt in ltin t th intnl nd tnl udits is dscibd in th rt  th audit Cmmitt  this annul rt.

Th Bd mintins  ml nd tnsnt ssinl ltinshi with th udits thugh th audit Cmmitt.

This sttmnt is md in ccdnc with  slutin md by th Bd dtd 28 ail 2010.

Th wk  th GIaD is undtkn in ccdnc with th nnul udit ln vd by th audit Cmmitt t th bginning  th y. Th hd  GIaD ts t th audit Cmmitt.

56


reporT oF THe aUDIT CoMMITTee

Th audit Cmmitt (“aC”) which ws stblishd n 8 Nvmb 1993 cmiss tw indndnt nn-cutiv dicts nd n nn-indndnt nn-cutiv dict s llws:-

4.

OOI TEIK HUAT (Chimn)

Th mmbs  th aC shll lct  chimn m mng th mmbs wh shll b n indndnt nn-cutiv dict. Shuld th chimn b bsnt m ny mting, n  th mmbs wh shll b n indndnt nn-cutiv dict shll b lctd s Chimn by th aC mmbs.

MEETINGS SYED AZMIN BIN SYED NOR

1.

Mtings shll b hld nt lss thn u tims  year;

2.

Th snc   mjity  indndnt nnexecutive directors shall form a quorum for the meetings;

3.

Th Gu Mnging Dict, Gu Chi Finncil oic nd snttivs  th intnl nd/ tnl udits shll nmlly ttnd mtings. attndnc  th dicts nd mlys t ny ticul mting shll nly b t th aC’s invitation,specific to the relevant meeting;

4.

Th scty  th aC shll b th cmny secretaryoranyotherpersonappointedbytheAC; nd

5.

Th ntic nd gnd  ch mting shll b snt t ll mmbs  th aC nd ny th sns that may be required to attend. Minutes of each mting shll b kt nd distibutd t ch mmb  th aC nd t th Bd  nttin. Th aC shll t nd my mk such cmmndtins t th Bd n ny udit nd inncil ting mtts, s it my think it.

KHALID BIN SUFAT

TERMS OF REFERENCE OF THE AUDIT COMMITTEE OBJECTIVES Th imy bjctiv  th aC is t ssist th Bd  Dicts (“Bd”) in th ctiv dischg  its iduciy snsibilitis  ct gvnnc, inncil ting, intnl cntl nd cmlinc with licbl vd Finncil rting Stndds nd Min Mkt Listing Requirements(“MMLR”)ofBursaMalaysiaSecuritiesBerhad (“Bus Mlysi”). In dditin, th aC will ndv t dt ctin ctics imd t mintining it stndds  ct snsibility, intgity nd ccuntbility t th shhlds.

COMPOSITION 1.

Th mmbs  th aC shll b intd by th Bd m mngst its numb which shll ulill th requirements of Bursa Malaysia;

2.

Th mmbs  th aC shll ll b nn-cutiv directorswithamajorityof thembeingindependent;

3.

N ltnt dict is t b intd s  member ofthe AC; and

annual report 2009

57


AUTHORITY

FUNCTIONS

Th aC shll hv th llwing uthity s mwd by th Bd:-

Th aC shll undtk th llwing snsibilitis nd dutis:-

1.

Th uthity t invstigt ny mtts within its termsof reference;

a)

2. 

T he  re so ur ce s w hi ch a re  r eq ui re d t o p er fo rm  i t s duties;

3.

Full nd unstictd ccss t ny inmtin nd documentsrelevantto theCompany’sactivities;

4.

Th mndt t hv ull uthity v th intnl audit function and requiring the internal audit functionto report directlyto the AC;

5.

Dict cmmunictin chnnls with th tnl udits, ny sn(s) cying ut th intnl udit unctin  ctivity nd with th sni mngmnt of the company and its subsidiaries;

6.

7.

•  Review w ith t he e xternal a uditors:-

Th bility t btin tnl lgl  indndnt ssinl  th dvic nd scu th ttndnc  utsids with lvnt inc andexpertise, if it considersnecessary; and Th bility t cnvn mtings with th tnl udits, th intnl udits  bth t lst twic  y, cluding th ttndnc  th dicts nd/ mngmnt, whnv dmd ncssy.

External Audit •  Consider and recommend the nomination and intmnt  th tnl udits, th udit feeandanyquestionsofresignationordismissal;

i)

th sc nd udit ln  th udit examination to ensure thatadequatetests t viy th ccunts nd cdus  th Gu will b md nd nsu c-dintin wh m thn n udit firm is involved;

ii)

th vlutin  th ctivnss  th internal control systems; and

iii)

th udit t.

•  Review the assistance given by the employees to the external auditor; and •

b)

Discuss issues and reservations arising from the udit nd ny mtts th tnl udits my wish t discuss in th bsnc  mngmnt, wh ncssy.

Internal Audit • Review the adequacy of the scope, functions, cmtncy nd sucs  th intnl udit unctins nd tht it hs th ncssy uthity tocarry out its work; •  Revi ew the inter nal  a udi t plan, processes, the mj indings  intnl udit gmm, csss  invstigtins undtkn nd mngmnt’s sns nd nsu c-dintin btwn th intnl nd tnl auditors;and •  Review the appointment and assessment of mnc  th intnl udit st.

58


c)

Financial Reporting Review theunaudited quarterly results andyear-end inncil sttmnts i t th vl by th Bd, cusing ticully n:i)

th ntu nd imct  ny chngs in  imlmnttin  mj ccunting licy nd practices;

ii) 

significant and unusual e vents;

iii)

cmlinc with ccunting stndds nd other legalrequirements;and

iv)

ad equac y of acc ounting , f i nanci al and ting c ntls nd t mnit th  imlmnttin  ny cmmndtins md.

d)

Related Party Transactions rviw ny ltd ty tnsctins nd cnlict  intst situtin tht my is within th Cmny  Gu including ny tnsctins, cdu  course of conduct that raise questions with regards to management integrity and the adequacy of the Gu’s cdus  mniting nd viwing  ltd ty tnsctins.

e)

Risk Management Revi ew the adequacy and eff ecti veness o f risk mngmnt, intnl cntl nd gvnnc systms institutd in th Gu.

)

SUMMARY OF ACTIVITIES DURING THE FINANCIAL YEAR In lin with its tms  nc, th min ctivitis undtkn by th aC duing th inncil y ndd 31 Dcmb 2009 in th dischg  its unctins nd dutis w s llws:1.

rviwd with th tnl udits, th sults  th udit nd th udit t, including intim udit ts n subsidiy cmnis nd mngmnt’s response in relation thereto. Subsequent discussions with th mngmnt w hld with gds th ctins tkn t imv th systm  intnl control basedon recommendationsmade;

2.

Reviewedunauditedquarterlyfinancialstatementsof the company priorto submission tothe Board;

3.

rviwd with th tnl udits, th uditd y-nd inncil sttmnts  th Gu nd th cmny i t submissin t th Bd, cusing ticully n ny chngs in  imlmnttin  mj ccunting licis nd cdus, signiicnt djustmnts ising m th udit nd cmlinc with licbl vd Finncil rting Stndds (“FrS”) nd th lgl nd gulty requirements;

4.

rviwd with th tnl udits, th ccunting issus ising m th udit cis including udts n nw dvlmnts n FrS issud by th relevant authorities;

Other Matters pm such th snsibilitis s my b vd by th Bd.

annual report 2009

59


5.

rviwd with th intnl udits ll udit ts n th sults  th wk undtkn tgth with th cmmndd ctin lns nd thi implementation status;

6.

rviwd th ltd ty tnsctins ntd int by th Gu t nsu tht ll tnsctins md wereincompliancewiththeshareholders’mandates;

7.

rviwd th rt  th audit Cmmitt nd th Sttmnt n Intnl Cntl  inclusin in this Annual Report;

8.

rviwd nd ssssd th isk mngmnt activitiesand riskreview reports of the Group;

9.

rviwd th tnt  cmlinc  th Gu with th visins st ut und th Mlysin Cd n Ct Gvnnc (“Cd”) nd th cmmndtins md t th Bd n th ctin lns t ddss th idntiid gs btwn th isting ct gvnnc ctics  th Gu nd th scibd ct gvnnc principlesand bestpracticesunder theCode; and

10.

rviwd th cmlinc  th Gu with th visins  th MMLr nd th gulty uthitis nd gully mnitd ctins tkn n issus  nn-cmlinc tht w td t th Bd nd Bus Mlysi.

ATTENDANCE AT MEETINGS Duing th inncil y ndd 31 Dcmb 2009,  ttl  svn (7) audit Cmmitt mtings w hld.

Members

Total Number o Meetings

Attended

oi Tik Hut# (Appointed w.e.f. 1 April 2009)

6

6

Syd azmin bin Syd N

7

7

Khlid bin Sut# (Appointed w.e.f. 1 April 2009)

6

6

ahmd bin abu Bk# (Resigned w.e.f. 1 April 2009)

1

1

D. Shiuddin bin abdul Hmid (Resigned w.e.f. 1 April 2009)

1

1

# mmb  th Mlysin Institut  accuntnts (“MIa”) at lst n mmb  th aC must b  mmb  th MIa  hv t lst th ys wking inc nd hv ssd th mintins sciid in pt 1  th Fist Schdul  th accuntnts act, 1967   mmb  n  th sscitins  ccuntnts sciid by pt II  th Fist Schdul  th accuntnts act, 1967  ulils such th requirements as prescribed by the approved Exchange. The Chairman, Mr. Ooi Teik Huat, has the necessary qualification s  mmb  th aC s h is  mmb  th MIa nd Cpa austli.

60


Th ctivitis undtkn by th GIaD duing th inncil y und viw w s llws:-

INTERNAL AUDIT Th Cmny hs  Gu Intnl audit Dtmnt (“GIaD”) whs imy unctin is t ssist th aC in dischging its dutis nd snsibilitis. Its l is t vid th aC with indndnt nd bjctiv ts n th stt  intnl cntls within th Gu nd th tnt  cmlinc by such tins t stblishd licis nd cdus  th Gu.

i.

Cid ut 19 gul viws n th businss processesto assess theadequacyandeffectiveness  intnl cntl, cmlinc with gultins nd th Gu’s licis nd cdus bsd n th approved audit plan;

ii.

Hld it udit disc ussins with th sni mngmnt in sct  udit indings, cmmndtins, mngmnt’s snss nd cctiv ctins t b tkn by ting units’ management team;

iii.

Mnitd th sttus  cctiv ctins nd imlmnttin t nsu tht ll udit issus isd in th intnl udit ts  itly ddssd by th ting units’ mngmnt team; and

iv.

rtd t th cmmndtins, cctiv ctins units’ mngmnt

Th intnl udit unctin is guidd by its audit Cht nd th Hd  GIaD ts t th audit Cmmitt. Th aC viws nd tht, vs th nnul intnl udit ln t th bginning  ch y. Th GIaD dts  isk-bsd uditing ch twds th tin  th udit ln nd cnduct  udits which is cnsistnt with th mwk  th Gu in dsigning, imlmnting nd mniting its intnl cntl systm. Thughut th inncil y und viw, udit ssignmnts, invstigtins nd llw-us w cid ut n th units  tins nd subsidiis. Ths w cid ut in ccdnc with th nnul intnl udit ln  s scil udits. Un cmltin  th udits, th intnl udit ts w wdd t th tis cncnd  thi ncssy ctin b bing sntd t th aC  its dlibtin. Th GIaD mnits th gss  th imlmnttin  th udit cmmndtins in d t btin ssunc tht ll mj isks nd cntls cncns hv bn duly ddssd by th mngmnt. aimtly rM877,000.00 ws incud by th Gu  th intnl udit unctin  th inncil y ndd 31 Dcmb 2009.

aC n th udit indings , mngmnt’s snss nd t b tkn by th ting tm n  gul bsis.

OOI TEIK HUAT Chimn  audit Cmmitt 27 ail 2010

annual report 2009

61

strategic ocus

achieving sustainability We have painstakingly initiated all eforts concerning the preservation o the environment by ocusing on its sustainability through efective internal processes and procedures which are environmentally sae and riendly.

CorporaTe reSpoNSIBILITY

64


“GIVING BaCK To SOCIETY” Cing nd shing hv lwys bn n stblishd tdmk  Tdwinds (M) Bhd (“TWS”  th “Cmny”). Whth it is t th wklc, in th mktlc  in th cmmunity, it is u hilshy t ct in  snsibl nd cing mnn, mking su tht u succss is inclusiv. as  ky ct ly in Mlysi, w  ls cmmittd t cnducting u tins with du sct t th nvinmnt, sving nd imving it  u childn nd  gntins yt unbn.

COMMUNITY DEVELOPMENT Scil snsibility which is  wy  li in TWS is mnistd

ov th ys, th Gu hs lyd n imtnt l in

nt nly in th mny chitbl gnistins nd wthy cuss tht th Gu suts, but it hs ls bn ully

ching ut nd in ding s, nich th vius cmmunitis in which we operate. New housing, quarters, mosques,

mbcd by u mlys in th vlunty wk thy undtk s  wy  giving bck t th scity.

cmmunity hlls nd snity cilitis cntinu t b ugdd  vn built m sctch t vid th ublic with a better quality oflife.

annual report 2009

65


In ching ut t th cmmunity, w hv dntd stls lik ic, sug, bd nd th visins t s th inncil budn bn by hngs nd ndy

on  th m -ching lgcis  u ductinl gmms is thugh u sscitin with th dvlmnt

milis thughut th cunty. Nith hv w gttn

 th albukhy Intntinl Univsity (th “Univsity”). Th Univsity ws st u with th imy bjctiv 

thm t stiv ccsins. Duing th y und viw, w snsd  numb  ‘Mjlis Bbuk pus’ t vius

providing high quality tertiary education to deserving studnts wh d nt hv th inncil mns t uth

orphanages and mosques within the Klang Valley. Our dilgu sssins with th cmmunity hv ls bn usul

thi studis. W s u sscitin with th dvlmnt 

in stblishing gd t nd btt undstnding in slving issus  mutul intsts. Whv w t,

th Univsity s t  u cntibutin t th dvlmnt   knwldg scity s nvisind in th Ninth Mlysi pln, 2006-2010.

w vid mlymnt tunitis  lcls nd by ding s, u succss ls mns succss  th lcl cmmunitis.

HEALTH & SAFETY

ou ductinl gmms hv lng bn  minsty

as  s th mngmnt is cncnd, th cn b n cmmis whn it cms t occutinl Hlth nd

in th Gu’s cmmunity ltins ts. Thugh u intnshi gmms, w nbl univsity nd cllg

Sty (“oHS”). It stms m  bsic cnvictin tht ll

studnts t undg cticl tining nd gin invlubl

ccidnts nd injuis cn b vntd thugh th

hnds-n inc t u sctiv ting unit. Th

stblishmnt nd cmlinc with hlth nd sty

id  tining ngs m th t si mnths. Th

licis thugh cmhnsiv wk cdus. Inculcting  s wk cultu is  snsibility shd by th

tinings vid intns with th ist tst  wking in th mktlc, giving thm  hdstt whn thy vntully lunch thi cs. at m th intnshi gmms, w hv ls nttind sit visits t u ctis nd mills m ductinl institutins.

mngmnt, st nd cntcts lik nd s  tm, w cnstntly wk twds chiving z ccidnt. Th juny t hlth nd sty cllnc is ininit. Signiicnt sucs  ddictd twds vluting nd imving th isting ctics v nd bynd th requirementssetby theregulatoryauthorities.TheChemical Hlth risk assssmnt gmm is  im ml  this cmmitmnt with th bjctiv t limint  minimis ny hlth-ltd isks sd by th us  hzdus chmicls t u lnts. Th Gu hs mvd stdily twds  m stuctud ch t oHS thugh th gisttin t oHSaS 18001:1999 which is n intntinl ctiictin schm  hlth nd sty mngmnt. T this nd,  sty cuncil hs bn stblishd t shd th oHSaS 18001 ctiictin ts gu-wid.

66


all hlth nd sty gmms  clsly mnitd by n in-hus oHS Dtmnt which cmis  ssinlly

Whil sm  u tining gmms  cnductd

tind nd ddictd oHS ic gistd with th Dtmnt  occutinl Sty nd Hlth und th

intnlly t Tdwinds plnttin acdmy, w ls dnd n tnl tins t vid thi tis in  numb  scilisd cuss. ech y, th tining

Ministy  Humn rsucs. Sty wnss tining is 

cuiculum is cully viwd nd clibtd t nsu

gul itu n th Gu’s tining clnd in d t imv th lvl  sty cnsciusnss mngst u

tht it is cunt nd lvnt t th tining nds  u

l.

 subjcts. Duing th y und viw, th clnd inc ludd c uss n Ct Gvnnc  n d

mlys. Tining gmms cv  bd sctum

HUMAN CAPITAL DEVELOPMENT

Compliance; Effective Leadership and Managerial Skills; Enterprise-wideRiskManagement;Finance,Accountingand

as  cmny built n mnc, w tk humn

Taxation; Management InformationSystems andInformation Technology;ProjectManagement;Quality,Environmentand

citl dvlmnt vy siusly. at ll, th Gu’s cntinuing succss dnds n u bility t dvl u st int utu lds  th Cmny. Tht is vidncd by th sizbl slic  u nnul ting budgt which is chnnld t th tining ts. Duing th y, th Gu ccmlishd  cmmndbl 90%  its tining

Safety Management Systems; Sugar Refining Technical Skills nd plnttin otins Skills, t cit  w. Scilisd tining gmms hv ls bn sciiclly tild t u sug mills such s th Fd Sty

tgt, with ch mly ulilling th minimum tining

Management System which is a prerequisite for obtaining th Hzds anlysis nd Citicl Cntl pint (“HaCCp”)

mn-hus stblishd t th bginning  th tining clnd y.

ctiictin m th Ministy  Hlth. HaCCp svs s  vntiv tl t dtct wh tntil bilgicl, chmicl nd hysicl cntmintins cn ccu s tht thy cn b ctivly mngd. Humn citl dvlmnt t TWS gs bynd th tining ts. It hs lwys bn u bjctiv t ct n nvinmnt tht is cnvivil yt ssinl wh w  sutiv  n nth s  tm in cting innvtiv syngis nd stiving  cmmn gls. ous is  cultu tht ncugs nd wds hd wk, but th is tim  ly s wll. Fmily Dy 2009 bught mlys nd milis tgth t  hill st in Cmn Highlnds. Scil ctivitis such s gl nd tl-mtchs w gnisd t st cls tis btwn th mngmnt, st nd thi milis.

annual report 2009

67


We also celebrate Malaysia’s unique diversity in many

In n g  incsing scil nd nvinmntl

stiv gthings in th siit  1Mlysi,  ml, th vnt t bing tgth ll st nd gusts t clbt

cnsciusnss, rSpo ctiictin is  sl  vl tht th lm il is ducd withut undu hm t th

n  th mj stivls in Mlysi. Bithdy clbtins  ls gnisd bi-mnthly t lvg n th siit 

nvinmnt  scity. It is wdd nly t stict viictin n th ductin css t stingnt

cing within th Gu. Such ctivitis g  lng wy

intntinl stndds by ccditd ctiying bdis nd

twds insiing lings  lylty, ncuging jb stisctin nd m  bigg sctiv, cting 

cn b withdwn t ny tim n iningmnt  th uls nd stndds. Th  ldy gwing indictins tht

sns  “Fmily”.

buys  d t y  mium  snsibly producedproductsand thefirst quarter2010 resultsproved

Th Gu njys  hlthy wking ltinshi with th

tht sls  rSpo-ctiid sustinbl lm il cntinu t gw signiicntly.

st unins. In cgnising th imtnt l lyd by th unins, gul mtings  hld t bth, mngmnt nd wking lvls t stblish t with th unins nd

Th Gu tks id in bing  “Gn” cmny vn

cl th i n issus  mutul intst. In ding s, w

b th mvmnt bcm  ul buzzwd. Th

hv  btt undstnding  n nth’s viw-ints, nbling th Gu t unctin in  m ctiv nd chsiv shin. It is th licy  th Gu t viw th

Gu hs st high stndds  cntl t nsu tht its ctivitis, csss nd ducts  cmtibl with th

Cllctiv agmnt vy th ys t nsu tht th

nvinmnt. Bsids cntlling i nd nis llutin, vy t is md t nsu th  dissl 

tms nd cnditins  mlymnt  cmbl with

schduld wsts t Kuliti alm Sdn Bhd.

th st  th industy. Th Gu hs ls cusd n sch nd dvlmnt

SUSTAINABILITY AND ENVIRONMENTAL MANAGEMENT Th nd  gnistin t bhv in  scilly snsibl manner is becoming a general requirement by the society.

t imv th icincy nd ctivnss  gnmic ctics in its lnttin businss. This hs sultd in th ll-ut  gmms  judicius tilis lictins, wd nd st cntl inititivs s wll s wt mngmnt nd lnt diss mitigtin.

on  th mst imtnt inititivs tkn duing th y is u dmissin t th rundtbl n Sustinbl plm oil (“rSpo”). Th incil bjctiv  th rSpo is t dvnc th ductin, cumnt nd us  sustinbl il

In viw  th gwing ncchmnt  sidntil

lm ducts thugh th dvlmnt, imlmnttin

dvlmnt, w hv tkn  ctiv stnc in addressing the issue of pollution. Consequently, a raft of msus hs bn intducd nd ths includ m

nd viictin  cdibl glbl stndds nd th

ctiv cntl mchnisms  lunt dischgs, i

nggmnt  stkhlds lng th suly chin.

missins, schduld wst dissl nd nis mitigtin. Thugh such ts, w hv mintind th lunt

68


dischg lvl cnsistntly wll within th gulty requirements. Waste water from the sugar refineries is subjctd t nbic nd bic csss b it is discharged. To ascertain the water quality, samples are nlysd by n indndnt lbty s wll s th Dtmnt  envinmnt n  mnthly bsis. With th cnvsin  th ld bil t  nw nd m cnmicl systm s wll s th switch m disl t ntul gs s  suc  ul, w hv chivd th dul bjctivs  imving bil icincy nd ducing missins in th m  dust ticults nd gsus llutnts. rcntly, th Gu hs instlld  Scndy Dust Cllctin Systm  th bils t duc dust ll-ut t n  th sug inis. Ct rsnsibility s  wy  li will cntinu t b  cnstn  th Gu’s ting hilshy. ech y, w nd tim nd sucs t l wys in which w cn ly  m mningul l in th scity. Yu cn ct m m us in ys t cm.

annual report 2009

69

GroUp HaLF-YearLY reSULTS

Six months ended 30 June 2009

Six months ended 31 December 2009

12 months ended 31 December 2009

RM’000

%

RM’000

%

RM’000

%

769,816

37

1,299,582

63

2,069,398

100

pit m tin

57,240

19

246,881

81

304,121

100

pit b t

29,611

12

216,259

88

245,870

100

(13,425)

18

(60,706)

82

(74,131)

100

155,553

91

171,739

100

(34,121)

100

rvnu

Ttin Nt it  th inncil y Minity intst

16,186

9

5,418

(16)

(39,539)

116

21,604

16

116,014

84

137,618

100

6.97

15

39.98

85

46.95

100

-

-

10.00

100

10.00

100

Netprofitattributabletoequity hlds  th Cmny ening  sh (sn) Dividnd  sh id - gss (sn)

70


FIVe-Year GroUp FINaNCIaL HIGHLIGHTS

2005 RM’000

2006 RM’000

2007 RM’000

2008 RM’000

2009 RM’000

969,583

1,151,154

1,690,837

1,767,566

2,069,398

pit b ttin Nt it  th y

53,384 30,338

65,238 49,610

253,616 204,669

298,808 222,242

245,870 171,739

Netprofitattributabletoequity hlds  th Cmny

33,015

46,641

147,649

160,735

137,618

rvnu

Equityattributabletoequity hlds  th Cmny

1,030,346

1,158,750

1,263,920

1,373,524

1,472,863

Ttl ssts

2,171,445

3,065,702

2,982,060

3,449,642

6,043,691

Ttl bwings Issud nd id-u citl

767,471 296,471

1,169,768 296,471

1,018,106 296,471

1,235,364 296,471

2,662,009 296,471

Dividnds id (nt  t)

42,692

38,423

47,613

50,459

22,235

2005 (%)

2006 (%)

2007 (%)

2008 (%)

2009 (%)

GROWTH RATES rvnu

14.1

18.7

46.9

4.5

17.1

pit b ttin

(48.2)

22.2

288.9

17.8

(17.7)

Netprofitattributabletoequity hlds  th Cmny Equityattributabletoequity

(55.8)

41.3

216.6

8.9

(14.4)

(1.0)

12.5

9.1

8.7

7.2

4.1

41.1

(2.7)

15.7

75.2

15.5

52.4

(13.0)

21.3

115.5

2005

2006

2007

2008

2009

Return on equity (%) rtun n ttl ssts (%)

3.2 1.5

4.0 1.5

11.7 5.0

11.7 4.7

9.3 2.3

rtun n vnu (%)

3.4

4.1

8.7

9.1

6.7

Gss dividnd (sn) enings  sh - bsic (sn)

18.0 11.1

20.0 15.7

23.0 51.4

20.0 56.1

15.0 * 47.0

Nt ssts  sh (rM)

3.48

3.91

4.26

4.63

4.97

hlds  th Cmny Ttl ssts Ttl bwings

RATIO

* Inclusiv  5% which is subjct t shhlds’ vl.

annual report 2009

71

FIVe-Year GroUp FINaNCIaL HIGHLIGHTS

Revenue (RM’000) 2,500,000

400,000

7 3 8 , 0 9 6 , 1

2,000,000

1,500,000

1,000,000

3 8 5 , 9 6 9

6 6 5 , 7 6 7 , 1

200,000

8 9 3 , 9 6 0 , 2

8 0 8 , 8 9 2

320,000 6 1 6 , 3 5 2

4 5 1 , 1 5 1 , 1

500,000

160,000

80,000

8 3 2 , 5 6

40,000

0 2005

2006

2007

2008

2009

2006

2007

1,600,000

1,200,000

2008

2009

Total Assets (RM’000) 8,000,000

6 4 3 , 0 3 0 , 1

0 5 7 , 8 5 1 , 1

0 2 9 , 3 6 2 , 1

4 2 5 , 3 7 3 , 1

3 6 8 , 2 7 4 , 1

1 9 6 , 3 4 0 , 6

6,400,000

4,800,000

2 0 7 ,

800,000

3,200,000

5 4 4 , 1 7 1 ,

5 6 0 , 3

0 6 0 , 2 8 9 , 2

2 4 6 , 9 4 4 , 3

2

400,000

1,600,000

0

0 2005

2006

2007

72

2008

2009

5 1 0 , 3 3

8 1 6 , 7 3 1

1 4 6 , 6 4

0 2005

Equity Attributable to Equity Holders of the Company (RM’000) 2,000,000

9 4 6 , 7 4 1

0 7 8 , 5 4 2

120,000

4 8 3 , 3 5

5 3 7 , 0 6 1

160,000

240,000

80,000

0

Net Profit Attributable to Equity Holders of the Company (RM’000)

Profit Before Taxation (RM’000)

2005

2006

2007

2008

2009


2005

2006

2007

2008

2009

Gross Dividend (Sen)

Return on Equity (%) 15

7 . 1 1

12

0 . 3 2

7 . 1 1 0 . 0 2

3 . 9

0 . 0 2

0 . 8 1

* 0 . 5 1

9

6

0 . 4 2 . 3

3

* Inclusive of 5% which is subject to shareholders’ approval 2005

2006

2007

2008

2009

0 2005

2006

2007

2008

2009

Net Assets Per Share (RM)

Earnings Per Share – Basic (Sen) 70

6.0

56

4 . 1 5

7 9 . 4

1 . 6 5

4.8 6 2 . 4

0 . 7 4

3 6 . 4

1 9 . 3

42

3.6

28

2.4

8 4 . 3

7 . 5 1

14

1 . 1 1

1.2

0

0 2005

2006

2007

2008

2009

2005

2006

2007

2008

annual report 2009

2009

73

strategic perormance

achieving excellence We will ensure the revenue perormance whilst maintaining our asset base quality and henceorth deliver exceptional and stellar results in achieving nancial perormance excellence.

FINANCIAl StAtEmENtS

77

Direcors’ Repor

81

Saeen by Direcors

81

Sauory Decaraion

82

Independen Audiors’ Repor

84

Baance Shees

86

Incoe Saeens

87

Saeen of Changes in Equiy

89

Cash Fow Saeens

92

Noes o he Financia Saeens

DIRECtORS’ REPORt

the Direcors hereby presen heir repor ogeher wih he audied financia saeens of he Group and of he Copany for he financia year ended 31 Deceber 2009.

PrinciPal PrinciP al activities the principa aciviies of he Copany are provision of anageen services and invesen hoding. the principa aciviies of he subsidiary copanies are saed in Noe 45(a) o he financia saeens. there has been no significan change i n he naure of hese aciviies during he financia year, year, oher han acquisiion of Norhern Inergraed Agricuure Sdn Bhd and Padiberas Nasiona Berhad which are invoved in propery deveopen and rice business, as discosed respecivey in Noe 7(d)(ii) and (iii) o he financia saeens.

Financial results Gp rM’000

cmpy rM’000

Ne profi for he financia year

171,739

13,235

Ne profi for he financia year aribuabe o: - Equiy hoders of he Copany - minoriy ineress

137,618 34,121

13,235 —

171,739

13,235

DiviDenDs the Copany paid a fina dividend of 10 sen gross per share ess 25% incoe ax aouning o Rm22,235,000 on 28 Juy 2009 in respec of he previous financia year. On 23 February 2010, he Copany decared an ineri dividend of 10 sen gross per share ess 25% incoe ax aouning o Rm22,235,000 in respec of he curren financia year, payabe on 21 may 2010. A he forhcoing Annua Genera meeing, a fina dividend of 5 sen gross per share ess 25% incoe ax aouning o Rm11,117,000 in respec of he curren financia year wi be proposed for sharehoders’ approva.

reserves anD Provisions there was no aeria ransfer o or fro reserves and provisions during he financia year oher han hose discosed in he financia saeens.

issue oF shares anD Debentures there was no issue of shares or debenures during he financia year.

 p 2009

77

DIRECtORS’ REPORt

oPtions GranteD over unissueD shares No opion was graned o any person o ake up unissued shares of he Copany during he financia year.

Directors the Direcors who served since he dae of he as repor are as foows: Dao’ Wira Syed Abdu Jabbar bin Syed Hassan Bakry bin Hazah Syed Azin bin Syed Nor Chuah Seong ta Khaid bin Sufa Ooi teik Hua Dauk R Sharifuddin Hizan bin R Zaina Abidin Dauk Hj. Isai bin Hj. Hashi tan Gee Sooi Boo Yew leng

(Appoined on 22.2.2010) (Appoined on 11.3.2010) (Resigned on 6.1.2010) (Resigned on 6.1.2010)

Directors’ interests Deais of hodings in he ordinary shares of he Copany or is reaed corporaions by he Direcors in office a he end of he financia year, according o he regiser required o be kep under Secion 134 of he Copanies Ac, 1965, were as foows:

n. f dy  f rM1.00  a  a  1.1.2009 bg sd 31.12.2009 syd azm  syd n Indirec ineres: tradewinds (m) Berhad

127,388,663

—

—

*127,388,663

D’ W syd ad J  syd h Direc ineres: tradewinds (m) Berhad

—

20,000

—

20,000

49,000

—

—

49,000

—

*49,000

6,000

—

—

6,000

t G s Direc ineres: tradewinds (m) Berhad Indirec ineres: tradewinds (m) Berhad b Yw lg Direc ineres: tradewinds (m) Berhad

(49,000)

—

* Indirec ineres by virue of shares hed by eber of he Direcor’s faiy. None of he oher Direcors hoding office a he end of he financia year had any ineres in he ordinary shares of he Copany or is reaed corporaions during he financia year.

78

traDeWinDs (M) berhaD

Directors’ beneFits Since he end of he previous financia year, no Direcor of he Copany has received or becoe enied o receive any benefi (oher han a benefi incuded in he aggregae aoun of eouens received or due and receivabe by Direcors as shown in Noe 31 o he financia saeens) by reason of a conrac ade by he Copany or a reaed corporaion wih he Direcor or wih a fir of which he is a eber, or wih a copany in which he has a subsania financia ineres oher han reuneraion received by cerain Direcors as direcors or execuives of subsidiary copanies and any deeed benefis ha ay accrue o cerain Direcors by virue of ransacion negoiaed beween he Group and copanies in which he Direcors are he direcors of he copanies as discosed in Noe 40 o he financia saeens. Neiher during nor a he end of he financia year, was he Copany a pary o any arrangeen he objec of which is o enabe he Direcors of he Copany o acquire benefis by eans of he acquisiion of shares in or debenures of he Copany or any oher body corporae.

statutorY inForMation on the Financial stateMents oF the GrouP anD oF the coMPanY (a)

(b)

Before he incoe saeens and baance shees of he Group and of he Copany were ade ou, he Direcors ook reasonabe seps: (i)

o ascerain ha proper acion had been aken in reaion o he wriing off of bad debs and he aking of aowance for doubfu debs and saisfied heseves ha a known bad debs had been wrien off and ha adequae aowance had been ade for doubfu debs; and

(ii)

o ensure ha any curren asses which were unikey o reaise heir vaues as shown in he accouning records in he ordinary course of business had been wrien down o an aoun which hey igh be expeced so o reaise.

A he dae of his repor, he Direcors are no aware of any circusances: (i)

ha woud render he aoun wrien off for bad debs or he aoun of he aowance for doubfu debs in he financia saeens of he Group and of he Copany inadequae o any subsania exen; or

(ii)

ha woud render he vaues aribued o he curren asses in he financia saeens of he Group and of he Copany iseading; or

(iii)

which have arisen which render adherence o he exising ehod of vauaion of asses or iabiiies of he Group and of he Copany iseading or inappropriae.

(c)

No coningen or oher iabiiy of any copany in he Group has becoe enforceabe, or is ikey o becoe enforceabe wihin he period of weve onhs afer he end of he financia year which, in he opinion of he Direcors, wi or ay affec he abiiy of he Group and of he Copany o ee heir obigaions when hey fa due.

(d)

A he dae of his repor, here does no exis: (i)

any charge on he asses of he Group or of he Copany which has arisen since he end of he financia year which secures he iabiiies of any oher person; or

(ii)

any coningen iabiiy in respec of he Group or of he Copany which has arisen since he end of he financia year.

 p 2009

79

DIRECtORS’ REPORt

other statutorY inForMation (a)

A he dae of his repor, he Direcors are no aware of any circusances no oherwise dea wih in his repor or he financia saeens, ha woud render any aoun saed in he financia saeens of he Group and of he Copany iseading.

(b)

In he opinion of he Direcors: (i)

he resus of he operaions of he Group and of he Copany for he financia year ended 31 Deceber 2009 have no been subsaniay affeced by any ie, ransacion or even of a aeria and unusua naure; and

(ii)

here has no arisen in he inerva beween he end of he financia year and he dae of his repor any ie, ransacion or even of a aeria and unusua naure ikey o affec subsaniay he resus of he operaions of he Group and of he Copany for he financia year in which his repor is ade.

siGniFicant events DurinG the Financial Year the significan evens during he financia year are discosed in Noe 44 o he financia saeens.

auDitors the audiors, Anuaru Azizan Chew & Co., have expressed heir wiingness o accep re-appoinen.

Signed in accordance wih a resouion of he Direcors.

Dato’ Wira sYeD abDul Jabbar bin sYeD hassan

ooi teiK huat

KUAlA lUmPUR 28 Apri 2010

80


StAtEmENt BY DIRECtORS Pursuan o Secion 169(15) of he Copanies Ac, 1965

We, DAtO’ WIRA SYED ABDUl JABBAR BIN SYED HASSAN and OOI tEIK HUAt, being wo of he Direcors of tRADEWINDS (m) BERHAD, do hereby sae ha, in he opinion of he Direcors, he financia saeens se ou on pages 10 o 118 are drawn up in accordance wih appicabe approved Financia Reporing Sandards in maaysia and he provisions of he Copanies Ac, 1965 so as o give a rue and fair view of he financia posiion of he Group and of he Copany as a 31 Deceber 2009 and of heir financia perforance and cash fows for he financia year ended on ha dae.

Signed in accordance wih a resouion of he Direcors.

Dato’ Wira sYeD abDul Jabbar bin sYeD hassan

ooi teiK huat


StAtUtORY DEClARAtION Pursuan o Secion 169(16) of he Copanies Ac, 1965

I, mOHD NAZRI BIN mD SHARIFF, being he Officer priariy responsibe for he financia anageen of tRADEWINDS (m) BERHAD, do soeny and sincerey decare ha he financia saeens se ou on pages 10 o 118 are o he bes of y knowedge and beief, correc and I ake his soen decaraion conscieniousy beieving he sae o be rue and by virue of he provisions of he Sauory Decaraions Ac, 1960. Subscribed and soeny decared by he abovenaed mOHD NAZRI BIN mD SHARIFF a KUAlA lUmPUR in he Federa terriory his 28 Apri 2010

) ) ) )

MohD naZri bin MD shariFF

Before e,

coMMissioner For oaths am  b (W456) No. 766, Jaan Senu Senu, 51000 Kuaa lupur

 p 2009

81

INDEPENDENt AUDItORS’ REPORt tO tHE mEmBERS OF tRADEWINDS (m) BERHAD

rp   F sm We have audied he accopanying financia saeens of tradewinds (m) Berhad, which coprise he baance shees as a 31 Deceber 2009 of he Group and of he Copany, and he incoe saeens, saeen of changes in equiy and cash fow saeens of he Group and of he Copany for he financia year hen ended, and a suary of significan accouning poicies and oher expanaory noes, as se ou on pages 10 o 118. Directors’ Responsibility for the Financial Statements

the Copany’s Direcors are responsibe for he preparaion and fair presenaion of hese financia saeens in accordance wih he provisions of he Copanies Ac, 1965 and he appicabe approved Financia Reporing Sandards in maaysia. this responsibiiy incudes: designing, ipeening and ainaining inerna conro reevan o he preparaion and fair presenaion of financia saeens ha are free fro aeria issaeen, wheher due o fraud or error; seecing and appying appropriae accouning poicies; and aking accouning esiaes ha are reasonabe in he circusances.

Auditors’ Responsibility

Our responsibiiy is o express an opinion on hese financia saeens based on our audi. We conduced our audi in accordance wih approved sandards on audiing in maaysia. these sandards require ha we copy wih ehica requireens and pan and perfor he audi o obain reasonabe assurance wheher he financia saeens are free of aeria issaeen. An audi invoves perf oring procedures o obain audi evid ence abou he aouns and discosures in he financia saeens. the procedures seeced depend on he audiors’ judgen, incuding he assessen of he risks of aeria issaeen of he financia saeens, wheher due o fraud or error. In aking hose risk assessens, he audiors consider inerna conro reevan o Copany’s preparaion and fair presenaion of he financia saeens in order o design audi procedures ha are appropriae in he circusances, bu no for he purpose of expressing an opinion on he effeciveness of he Copany’s inerna conro. An audi aso invoves evauaing he appropriaeness of accouning poicies used and he reasonabeness of accouning esiaes ade by he Direcors, as we as evauaing he overa presenaion of he financia saeens. We beieve ha he audi evidence we have obained is sufficien and appropriae o provide a basis for our opinion. Opinion

In our opinion, he financia saeens are propery drawn up in accordance wih he appicabe approved Financia Reporing Sandards in maaysia and he Copanies Ac, 1965 in maaysia so as o give a rue and fair view of he financia posiion of he Group and of he Copany as a 31 Deceber 2009 and of heir financia perforance and cash fows for he financia year ended on ha dae.

82


rp  o lg d rgy rm In accordance wih he requireens of he Copanies Ac, 1965 in maaysia, we aso repor on he foowing: (a)

In our opinion, he accouning and oher records and he regisers required by he Ac o be kep by he Copany and by he subsidiary copanies of which we aced as audiors have been propery kep in accordance wih he provisions of he Ac.

(b)

the nae of he subsidiary copanies of which we have no aced as audiors are indicaed in Noe 45(a) o he financia saeens. We have considered he financia saeens of hese subsidiary copanies and he independen audiors’ repors hereon.

(c)

We are saisfied ha he financia saeens of he subsidiary copanies ha are consoidaed wih he Copany’s financia saeens are in for and conen appropriae and proper for he purposes of he preparaion of he consoidaed financia saeens of he Group and have received saisfacory inforaion and expanaions as required by us for hose purposes.

(d)

the independen audiors’ repors on he financia saeens of he subsidiary copanies were no subjec o any quaificaion and did no incude any coen ade under subsecion (3) of Secion 174 of he Ac.

o M this repor is soey ade o he ebers of he Copany, as a body, in accordance wih Secion 174 of he Copanies Ac, 1965 in maaysia and for no o her purpose. We do no assue any responsibiiy o any oher person for he conen of his repor.

anuarul aZiZan cheW & co. Fir Nuber: AF 0791 Charered Accounans

sathiea seelean a/l ManicKaM Approved Nuber: 1729/05/10 (J/PH) Parner of Fir


 p 2009

83

BAlANCE SHEEtS AS At 31 DECEmBER 2009

Gp

cmpy 2009 2008 rM’000 rM’000

n

2009 rM’000

2008 rM’000

3 4 5 6 7 8 9 10 11 12

913,769 974,414 1,050,431 87,412 — 232,323 12,223 4,475 93,422 77,705

527,463 959,199 972,413 — — 20,832 13,102 4,954 91,140 12,655

290 — — — 1,386,100 — — 163,489 — —

818 — — — 893,606 — — 163,489 — —

3,446,174

2,601,758

1,549,879

1,057,913

995,271 560,144 569,080 — 34,872 14,563 5,654 218,645 199,288

334,922 322,789 69,408 — — 14,185 454 50,929 55,197

— — 16,766 151,023 — 12,126 — — 54,745

— — 10,532 213,571 — 8,420 — — 244

2,597,517

847,884

234,660

232,767

216,226 294,540 — 3,368 4,082 1,616,026 4,229 31,253

94,063 120,218 — 20,186 — 702,452 458 4,661

— 50,737 17,814 — — 184,050 — —

— 1,318 21,795 — — 190,320 — —

2,169,724

942,038

252,601

213,433

(94,154)

(17,941)

19,334

n-c a Propery, pan and equipen Prepaid ease payens Panaion deveopen expendiure land hed for propery deveopen Invesen in subsidiary copanies Invesen in associaed copanies Invesen in joiny conroed eniy Oher invesens Inangibe asses Deferred ax asses

c a Invenories trade receivabes Oher receivabes Aoun owing by subsidiary copanies Aoun owing by associaed copanies tax recoverabe Asses hed for sae Fixed deposis Cash and bank baances

13 14 15 16 17 18 19

c l trade payabes Oher payabes Aoun owing o subsidiary copanies Aoun owing o associaed copanies Hire purchase and finance ease payabes Borrowings Reireen benefi obigaions tax payabe

Ne curren asses/(iabiiies)

20 21 16 17 22 23 24

427,793 3,873,967

84


2,507,604

1,531,938

1,077,247

Gp

cmpy 2009 2008 rM’000 rM’000

n

2009 rM’000

2008 rM’000

25 26

296,471 1,176,392

296,471 1,077,053

296,471 770,208

296,471 779,208

Equiy aribuabe o equiy hoders of he Copany minoriy ineress

1,472,863 977,143

1,373,524 364,257

1,066,679 —

1,075,679 —

toa equiy

2,450,006

1,737,781

1,066,679

1,075,679

4,854 1,045,983 304,013 69,111

— 532,912 231,198 5,713

— 461,247 4,012 —

— — 1,568 —

1,423,961

769,823

465,259

1,568

3,873,967

2,507,604

1,531,938

1,077,247

Fd y: Share capia Reserves

n-c l Hire purchase and finance ease payabes Borrowings Deferred ax iabiiies Reireen benefi obigaions

22 23 12 24

the accopanying noes for an inegra par of he financia saeens.

 p 2009

85

INCOmE StAtEmENtS FOR tHE FINANCIAl YEAR ENDED 31 DECEmBER 2009

Gp

Revenue Oher operaing incoe Changes in invenory of finished goods and work in progress Raw aerias and consuabes used Saff coss Aorisaion of prepaid ease payens Aorisaion of panaion deveopen expendiure Depreciaion of propery, pan and equipen Oher operaing expenses Profi fro operaions Finance coss

n

2009 rM’000

2008 rM’000

27 28

2,069,398 48,937

1,767,566 19,622

29 30 4

(18,527) (1,206,897) (183,335) (14,204)

5 3,5(b) 31

32

Share of resus of joiny conroed eniy Share of resus of associaed copanies Profi before axaion taxaion

9(c) 8

cmpy 2009 2008 rM’000 rM’000 94,316 92

66,451 36

37,067 (958,812) (147,501) (13,280)

— — (7,403) —

— — (6,552) —

(44,197) (65,003) (282,051)

(44,437) (55,674) (260,356)

— (559) (44,432)

— (644) (8,140)

304,121 (55,033)

344,195 (48,489)

42,014 (9,814)

51,151 (8,249)

249,088

295,706

32,200

42,902

3,102

—

—

—

—

—

(5,879) 2,661 245,870 (74,131)

298,808 (76,566)

32,200 (18,965)

42,902 (11,535)


171,739

222,242

13,235

31,367

Ne profi for he financia year aribuabe o: - Equiy hoders of he Copany - minoriy ineress

137,618 34,121

160,735 61,507

13,235 —

31,367 —

171,739

222,242

13,235

31,367

33

Earnings per share aribuabe o equiy hoders of he Copany (sen): - Basic

34(a)

46.95

56.09

- Diued

34(b)

—

—


86


StAtEmENtS OF CHANGES IN EQUItY FOR tHE FINANCIAl YEAR ENDED 31 DECEmBER 2009

aiul o equiy hold of  compy no-Diiul

Diiul

s pil rM’000

s pmium rM’000

cpil v rM’000

exg v rM’000

cpil v rM’000

rid pofi rM’000

296,471

84,171

3,684

27,639

2,077

— — —

— — —

— — —

(672) — —

—

—

—

— —

— —

A 31 December

296,471

2009 a 1 Juy

Goup

no

2008 a 1 Juy Exchange differences on ranslaion, represening ne expenses recognised direcly in equiy Acquisiion of subsidiary company 7(e) Ne profi for he financial year toal recognised (expense)/income for he financial year Dividend paid o minoriy shareholders of subsidiary companies Dividends paid 35

Realisaion upon liquidaion of an associaed company Exchange differences on ranslaion

28

Ne expenses recognised direcly in equiy Acquisiion of subsidiary companies 7(d) Ne profi for he financial year toal recognised (expense)/income for he financial year Dividend paid o minoriy shareholders of subsidiary companies Dividends paid 35 A 31 December

tol rM’000

Mioiy i rM’000

tol quiy rM’000

849,878

1,263,920

304,376

1,568,296

— — —

— — 160,735

(672) — 160,735

325 5,153 61,507

(347) 5,153 222,242

(672)

—

160,735

160,063

66,985

227,048

— —

— —

— —

— (50,459)

— (50,459)

(7,104) —

(7,104) (50,459)

84,171

3,684

26,967

2,077

960,154

1,373,524

364,257

1,737,781

296,471

84,171

3,684

26,967

2,077

960,154

1,373,524

364,257

1,737,781

— —

— —

— —

(16,351) 307

— —

— —

(16,351) 307

— (279)

(16,351) 28

— — —

— — —

— — —

(16,044) — —

— — —

— — 137,618

(16,044) — 137,618

(279) 586,619 34,121

(16,323) 586,619 171,739

—

—

—

(16,044)

—

137,618

121,574

620,461

742,035

— —

— —

— —

— —

— —

— (22,235)

— (22,235)

(7,575) —

(7,575) (22,235)

296,471

84,171

3,684

10,923

2,077

1,075,537

1,472,863

977,143

2,450,006

 p 2009

87

StAtEmENtS OF CHANGES IN EQUItY FOR tHE FINANCIAl YEAR ENDED 31 DECEmBER 2009

nD

D

n

s p rM’000

s pmm rM’000

cp  rM’000

35

296,471 — —

84,171 — —

497 — —

713,632 31,367 (50,459)

1,094,771 31,367 (50,459)

A 31 Deceber

296,471

84,171

497

694,540

1,075,679

2009 a 1 Jy Ne profi for he financia year Dividends paid

296,471 — —

84,171 — —

497 — —

694,540 13,235 (22,235)

1,075,679 13,235 (22,235)

296,471

84,171

497

685,540

1,066,679

cmpy 2008 a 1 Jy Ne profi for he financia year Dividends paid

A 31 Deceber

35


88


rd pf rM’000

t rM’000

CASH FlOW StAtEmENtS FOR tHE FINANCIAl YEAR ENDED 31 DECEmBER 2009

Gp n

c Fw Fm opg a Profi before axaion Adjusens for: Aorisaion of panaion deveopen expendiure Aorisaion of prepaid ease payens Aowance for doubfu debs Bad debs wrien off Reaisaion upon iquidaion of an associaed copany Depreciaion of propery, pan and equipen Dividend incoe Gain on financia asses hed a fair vaue (Reversa)/Ipairen oss on oher invesens (ne) Ineres expense Ineres incoe loss/(Gain) on disposa of: - invesen in associaed copanies - oher invesens - propery, pan and equipen (ne) - asses hed for sae - prepaid ease payens (ne) Propery, pan and equipen wrien off Panaion deveopen expendiure wrien off Provision for reireen benefis Excess of fair vaue of ne asses acquired over purchase consideraion Share of resus of joiny conroed eniy Share of resus of in associaed copanies Unreaised gain on foreign exchange Operaing profi/(oss) before working capia changes (Increase)/Decrease in working capia Invenories Receivabes Payabes Aoun owing by/o reaed copany Aoun owing by/o associaed copanies

2008 rM’000 rd

245,870

298,808

32,200

42,902

44,197 14,204 244 107

44,437 13,280 — 3

— — — —

— — — —

(16,351) 65,003 (7) —

— 55,674 (33) (1,050)

— 559 (82,349) —

— 644 (55,149) —

(181) 55,033 (4,350)

481 48,489 (10,137)

— 9,814 (10,767)

— 8,249 (10,702)

2,853 (79) (264) (648) (86) 615 154 1,921

— — (221) — (140) 20 3,678 918

— — (92) — — — — —

— — (36) — — — — —

(14,087) 5,879 (2,661) (332)

— (3,102) — —

— — — —

— — — —

5 4

3

3 5 24 7(d) 9(c) 8

cmpy 2009 2008 rM’000 rM’000 rd

2009 rM’000

397,034

451,105

(50,635)

(118,299) (38,800) 87,928 — 7,023

(119,693) 2,243 45,530 12,901 —

— 4,036 46,167 — —

— 5,764 (565) — —

(62,148)

(59,019)

50,203

5,199

 p 2009

89

(14,092)

CASH FlOW StAtEmENtS FOR tHE FINANCIAl YEAR ENDED 31 DECEmBER 2009

Gp n

Cash generaed fro/(used in) operaions tax (paid)/refund (ne) Reireen benefis paid

Ne cash fro/(used in) operaing aciviies

c Fw Fm ig a Subscripion of redeeabe converibe preference shares in a joiny conroed eniy Acquisiion of joiny conroed eniy Acquisiion of subsidiary copanies Addiions in propery, pan and equipen Addiions in prepaid ease payens Addiions in panaion deveopen expendiure Cash consideraion fro oher invesens Dividend received Deposi received for disposa of asses hed for sae Ineres received Proceeds fro auriy of invesen in maaysian Governen Securiies Purchase of oher invesens Proceeds fro disposa of: - propery, pan and equipen - asses hed for sae - prepaid ease payen - oher invesens - associaed copanies Ne cash (used in)/fro invesing aciviies

90

9 9 7(d) 3 4 5(b) 10(b)

2008 rM’000 rd

334,886

392,086

(432)

(46,688) (908)

(57,976) (438)

360 —

(14,339) —

(47,596)

(58,414)

360

(14,339)

287,290

333,672

(72)

(23,232)

(5,000) — (389,181) (114,668) (479) (109,743) — 7

— (10,000) (255,304) (119,125) — (89,835) 63 33

— — (492,494) (72) — — — 55,492

— — — (220) — — — 55,149

— 2,388 10(b) 10(b)

cmpy 2009 2008 rM’000 rM’000 rd

2009 rM’000

— — 374 990 150 780 1,469 (612,913)


110 2,690

(8,893)

— 929

— 10,702

400 (9)

— —

— —

226 613 276 37 —

134 — — — —

36 — — — —

(469,825)

(436,011)

65,667

Gp n

c Fw Fm Fg a Drawdown of er oan Repayen of er oan Re-financing of er oan Ne drawdown/(repayen) of revoving credis Ne (redepion)/issuance of murabahah Coercia Papers/mediu ter Noes Fixed deposis pedged wih icensed banks Aoun owing by/o subsidiary copanies Aoun owing o associaed copany Ineres paid Dividend paid o inoriy sharehoders of subsidiary copanies Dividends paid

2009 rM’000

2008 rM’000 rd

cmpy 2009 2008 rM’000 rM’000 rd

752,897 (109,710) (95,700) 176,058

16,000 (38,863) — 139,800

512,497 (65,000) — 7,800

— — — (13,500)

(50,000) 1,967 — 381 (64,936)

100,000 15,086 — (1,658) (57,802)

— — 64,405 — (6,527)

— — (10,586) — (8,249)

(7,575) (22,271)

(7,104) (50,356)

— (22,271)

— (50,356)

581,111

115,103

490,904

(82,691)

255,488 2

(21,050) 3

54,821 —

(40,256) —

99,812

120,859

c d    d f f y

355,302

99,812

54,745

(76)

Cash and cash equivaens a end of financia year coprise: Fixed deposis Cash and bank baances

218,645 199,291

50,929 55,197

— 54,745

— 244

417,936

106,126

54,745

244

Ne cash fro/(used in) financing aciviies

n /(d)   d   eff f g  g c d    gg f f y

less: Isaic deposis hed on rus for he benefi of he Isaic Securiies Invesors less: Fixed deposis pedged o icensed banks less: Bank overdraf

19(a) 19(b)

(5,447) (53,228) (3,959)

(5,447) (547) (320)

355,302

99,812

(76)

— — —

— — (320)

54,745

(76)


 p 2009

40,180

91

NOtES tO tHE FINANCIAl StAtEmENtS

1.

corPorate inForMation the Copany is a pubic iied iabiiy copany, incorporaed and doicied in maaysia, and is ised on he main marke of Bursa maaysia Securiies Berhad. the regisered office and he principa pace of business of he Copany is ocaed a 22nd Foor, Wisa Zean, No.1, Jaan tasik Peraisuri 2, Bandar tun Razak, 56000 Cheras, Kuaa lupur. the principa aciviies of he Copany are provision of anageen services and invesen hoding. the principa aciviies of he subsidiary copanies are saed in Noe 45(a) o he financia saeens. there has been no significan change in he naure of hese aciviies during he financia year, oher han acquisiion of Norhern Inergraed Agricuure Sdn Bhd and Padiberas Nasiona Berhad which are invoved in propery deveopen and rice business, as discosed respecivey in Noe 7(d)(ii) and (iii).

2.

siGniFicant accountinG Policies ()

b f pp the financia saeens of he Group and of he Copany have been prepared under he hisorica cos convenion uness oherwise saed in he accouning poicies beow and in accordance wih he provisions of he Copanies Ac, 1965 and appicabe approved Financia Reporing Sandards (“FRS”) in maaysia issued by he maaysian Accouning Sandards Board. Changes in accouning poicies and fuure accouning sandards are discosed in Noe 43.

()

F d p y these financia saeens are presened in Ringgi maaysia (“Rm”), which is he Copany’s funciona and presenaion currency. A financia inforaion presened in Rm has been rounded o he neares housand (Rm’000), uness oherwise saed.

()

sgf g m, mp d jdgm Esiaes, assupions concerning he fuure and judgeens are ade in he preparaion of he financia saeens. they affec he appicaion of he Group’s accouning poicies, repored aouns of asses, iabiiies, incoe and expenses, and discosures ade. they are assessed on an o n-going basis and are based on experience and reevan facors, incuding expecaions of fuure evens ha are beieved o be reasonabe under he circusances. the key assupions concerning he fuure and oher key sources of esiaion or uncerainy a he baance shee dae, ha have a significan risk of causing a aeria adjusen o he carrying aouns of asses and iabiiies wihin he nex financia year are discussed as foows: (i)

Ipairen of goodwi Ipairen of goodwi is deerined by he Group on an annua basis. this requires an esiaion of he vauein-use of he cash-generaing unis (“CGU”) o which he goodwi is aocaed. Esiaing he vaue-in-use requires he Group o ake an esiae of he expeced fuure cash fows fro he CGU and aso o op for suiabe discoun raes in order o cacuae he presen vaue of hose cash fows. the carrying aoun of he Group’s goodwi as a 31 Deceber 2009 is discosed in Noe 11.

92


2

siGniFicant accountinG Policies (cont’D) ()

sgf g m, mp d jdgm (’d) (ii)

Ipairen of oher invesens and asses hed for sae the Group carried ou he ipairen es based on a variey of esiaion incuding he vaue-in-use of he CGU o which he oher invesens and asses hed for sae are aocaed. Esiaing he vaue-in-use requires he Group o ake an esiae of he expeced fuure cash fows fro he CGU and aso o op for a suiabe discoun rae in order o cacuae he presen vaue of hose cash fows. the carrying aouns of oher invesens and asses hed for sae of he Group as a 31 Deceber 2009 are discosed in Noe 10 and 18 respecivey.

(iii)

Incoe axes the Group has exposure o incoe axes in nuerous jurisdicions. Significan judgeen is invoved in deerining he group-wide provision for incoe axes. there are cerain ransacions and copuaions for which he uiae ax deerinaion is uncerain during he ordinary course of business. the Group recognises iabiiies for expeced ax issues based on esiaes of wheher addiiona axes wi be due. Where he fina ax oucoe of hese aers are differen fro he aouns ha were iniiay recognised, such differences wi ipac he incoe ax and deferred ax provisions in he period in which such deerinaion is ade. the carrying aoun of he Group’s ax payabe and ax recoverabe as a 31 Deceber 2009 were Rm31,253,000 and Rm14,563,000 (2008: Rm4,661,000 and Rm14,185,000) respecivey.

(iv)

Deferred ax asses Deferred ax asses are recognised for a unused ax osses and unuiised capia and agricuure aowances o he exen ha i is probabe ha axabe profi wi be avaiabe agains which he osses and capia and agricuure aowances can be uiised. Significan anageen judgeen is required o deerine he aoun of deferred ax asses ha can be recognised, based upon he ikey iing and eve of fuure axabe profis ogeher wih fuure ax panning sraegies. the oa carrying aouns of recognised/unrecognised ax osses and capia and agricuure aowances of he Group as a 31 Deceber 2009 are discosed in Noe 12.

(v)

Depreciaion of propery, pan and equipen and aorisaion of panaion deveopen expendiure the coss of propery, pan and equipen and panaion deveopen expendiure for panaion aciviies are depreciaed on a sraigh-ine basis over heir usefu ives. manageen esiaes he usefu ives of he propery, pan and equipen and panaion deveopen expendiure as saed in Noe 2(e) and Noe 2(g) respecivey. these are coon ife expecancies appied in he indusries. Changes in he expeced eve of usage and echnoogica deveopens coud ipac he econoic usefu ives and he residua vaues of hese asses, herefore fuure depreciaion charges and aorisaion expenses coud be revised. the carrying aoun of he Group and of he Copany’s propery, pan and equipen and panaion deveopen expendiure as a 31 Deceber 2009 are saed in Noe 3 and Noe 5 respecivey.

(vi)

Asses hed for sae the Group foows he guidance of FRS 5 in cassifying asses recovered principay hrough a sae ransacion as asses hed for sae. this cassificaion requires significan judgeen. In aking his judgeen, he Group akes ino consideraion he ikeihood of he sae. the Group’s carrying aoun of he asses hed for sae as a 31 Deceber 2009 is discosed in Noe 18.

 p 2009

93


2

siGniFicant accountinG Policies (cont’D) ()

sgf g m, mp d jdgm (’d) (vii)

Esiaion of presen vaue of oher receivabes the Group esiaes he baance of consideraion receivabe for surrender of ease in 3 equa annua insaens beginning fro he year 2005 aouning o Rm88,350,000 by using he discouned cash fow (“DCF”) ehodoogy. the DCF ehodoogy requires he Group o ake an esiae of he aoun and iing of fuure ne cash fows fro he paricuar oher receivabes and discouning he o presen vaue by appying a suiabe discoun rae. the Group’s carrying aoun of he paricuar oher receivabes as a 31 Deceber 2009 in curren asses is discosed in Noe 15.

(viii) Reireen benefis the deerinaion of he obigaion and cos for pension and oher reireen benefis is dependen on he seecion of cerain assupions used by acuaries in cacuaing such aouns. those assupions, which incude aong ohers discoun raes and raes of saary increase, are described in Noe 24. In accordance wih FRS 119 “Epoyee Benefis”, acua resus ha differ fro he assupions are accuuaed and aorised over fuure periods and herefore, generay affec he recognised expense and recorded obigaion in such fuure periods. Whie he Group beieves ha he assupions are reasonabe and appropriae, significan differences in he acua experience or significan changes in he assupions ay aeriay affec he reireen benefi obigaions. (ix)

Aowance for doubfu debs the Group akes aowance for doubfu debs based on an assessen of he recoverabiiy of receivabes. Aowances are appied o receivabes where evens or changes in circusances indicae ha he carrying aouns ay no be recoverabe. the anageen specificay anayses hisorica bad deb, cusoer concenraion, cusoer crediworhiness, curren econoic rends and changes in cusoer payen ers when aking a judgeen o evauae he adequacy of aowance for doubfu debs. Where expecaions differ fro he origina esiaes, he differences wi ipac he carrying aoun of receivabes.

(x)

Fair vaues of borrowings the fair vaues of borrowings are esiaed by discouning fuure conracua cash fows a he curren arke ineres raes avaiabe o he Group for siiar financia insruens. I is assued ha he ef fecive ineres raes approxiae he curren arke ineres raes avaiabe o he Group based on is size and is business risk.

(xi)

Wrie-down for obsoee or sow-oving invenories the Group wries down is obsoee or sow oving invenories based on assessen of heir esiaed ne seing price. Invenories are wrien down when evens or changes in circusances indicae ha he carrying aouns ay no be recoverabe. the anageen specificay anayses saes rend and curren econoic rends when aking a judgeen o evauae he adequacy of he wrie down for obsoee or sow oving invenories. Where expecaions differ fro he origina esiaes, he differences wi ipac he carrying aoun of invenories.

94


2

siGniFicant accountinG Policies (cont’D) (d)

b f d the consoidaed financia saeens incude he financia saeens of he Copany and a is subsidiary copanies and is associaed copanies hrough equiy accouning, which are ade up o he end of he financia year. (i)

Subsidiary copanies Subsidiary copanies are eniies (incuding specia purpose eniies) over which he Group has power o govern he financia and operaing poicies, generay accopanying a sharehoding of ore han one haf of he voing righs. the exisence and effec of poenia voing righs ha are curreny exercisabe or converibe are considered when assessing wheher he Group conros anoher eniy. In he Copany’s separae financia saeens, invesen in subsidiary copanies is saed a cos ess ipairen osses. On disposa of such invesens, he difference beween ne disposa proceeds and heir carrying aoun is incuded in he incoe saeens. the purchase ehod of accouning is used o accoun for he acquisiion of subsidiaries. the cos of an acquisiion is easured as he fair vaue of he asses given, equiy insruens issued or iabiiies incurred or assued a he dae of exchange, pus coss direcy aribuabe o he acquisiion. Idenifiabe asses acquired and iabiiies and coningen iabiiies assued in a business cobinaion are easured iniiay a heir fair vaues on he dae of acquisiion, irrespecive of he exen of any inoriy ineres. the excess of he cos of business cobinaion over he Group’s ineres in he ne fair vaue of he idenifiabe asses, iabiiies and coningen iabiiies is recognised as goodwi. the accouning poicy on goodwi on acquisiion of subsidiaries is se ou in Noe 2(j). If he cos of business cobinaion is ess han he ineres in he ne fair vaue of he idenifiabe asses, iabiiies and coningen iabiiies, he Group wi: (a) (b)

reassess he idenificaion and easureen of he acquiree’s idenifiabe asses, iabiiies and coningen iabiiies and he easureen of he cos of he cobinaion; and recognise iediaey in profi or oss any excess reaining afer ha reassessen.

When a business cobinaion incudes ore han one exchange ransacion, any adjusen o he fair vaues of he subsidiary’s idenifiabe asses, iabiiies and coningen iabiiies reaing o previousy hed ineress of he Group is accouned for as a revauaion. Subsidiaries are consoidaed fro he dae on which conro is ransferred o he Group o he dae on which ha conro ceases. minoriy ineress are easured a he inoriies’ share of he fair vaue of idenifiabe asses and iabiiies a he dae of acquisiion by he Group and he inoriies’ share of changes in equiy since he dae of acquisiion, excep when he osses appicabe o he inoriy in a subsidiary exceed he inoriy ineres in he equiy of ha subsidiary. In such cases, he excess and furher osses appicabe o he inoriy are aribued o he equiy hoders of he Copany.

 p 2009

95


2


b f d (’d) (ii)

Associaed copanies Associaed copanies are eniies over which he Group has significan infuence and ha are neiher a subsidiary nor an ineres in a join venure. Significan infuence is he power o paricipae in he financia and operaing poicies decision of he invesee bu no conro or join conro over hose poicies. Invesens in associaed copanies are saed a cos ess ipairen osses. On disposa of such invesens, he difference beween ne disposa proceeds and heir carrying aoun is incuded in he incoe saeens. Invesens in associaed copanies are accouned for using he equiy ehod of accouning. Invesens in associaed copanies incude goodwi idenified on acquisiion, ne of any accuuaed ipairen oss in accordance wih Noe 2(i). Equiy accouning invoves recording invesens in associaed copanies iniia y a cos, and recognising he Group’s share of is associaed copanies’ pos-acquisiion resus and is share of pos-acquisiion oveens in reserves agains he carrying aoun of he invesens. When he Group’s share of osses in an associaed copany equas or exceeds is ineres in he associaed copany, incuding any oher unsecured receivabes, he Group does no recognise furher osses, uness i has incurred obigaions or ade payens on behaf of he associaed copany.

(iii)

Joiny conroed eniies A joiny conroed eniy is a join venure ha invoves he esabishen of a corporaion, parnership or oher eniies over which here is conracuay agreed sharing of join conro over he econoic aciviy of he eniy. Join conro exiss when he sraegic financia and operaiona decisions reaing o he aciviy require he unanious consen of a he paries sharing conro. Invesen in joiny conroed eniies is saed a cos ess accuuaed ipairen osses, if any. Upon disposa of such invesen, he difference beween he ne disposa proceeds and is carrying aoun is incuded in incoe saeen. the invesen in joiny conroed eniy is accouned for in he consoidaed financia saeens using he equiy ehod of accouning. the Group’s share of resus in he joiny conroed eniy during he financia year is incuded in he consoidaed financia saeens, afer adjusens o aign he accouning poicies wih hose of he Group, fro he dae ha join conro coences uni he dae ha join conro ceases. the Group recognises he porion of gains or osses on he sae of asses by he Group o he join venure ha is aribuabe o he oher venurers. the Group does no recognise is share o f resus fro he join venure ha resu fro he purchase of asses by he Group fro he join venure uni i reses he asses o an independen pary. However, a oss on he ransacion is recognised iediaey if he oss provides evidence of a reducion in he ne reaisabe vaue of curren asses or an ipairen oss. When necessary, in appying he equiy ehod, adjusens are ade o he financia saeens of he joiny conroed eniy o ensure consisency of accouning poicies wih hose of he Group. Unreaised gains on ransacions beween he Group and is joiny conroed eniy are ei inaed o he exen of he Group’s ineres in he joiny conroed eniy; unreaised osses are aso eiinaed uness he ransacion provides evidence on ipairen of he asse ransferred. Where necessary, in appying he equiy ehod, adjusens are ade o he financia saeens of he joiny conroed eniy o ensure consisency of accouning poicies wih hose of he Group.

96


2


b f d (’d) (iv)

Changes in Group coposiion Where a subsidiary issues new equiy shares o inoriy ineress for cash consideraion and he issue price has been esabished a fair vaue, he reducion in he Group’s ineress in he subsidiary is accouned for as a disposa of equiy ineres wih he corresponding gain or oss recognised in he consoidaed incoe saeen. When he Group purchases a subsidiary’s equiy shares fro inoriy ineress for cash consideraion and he purchase price has been esabished a fair vaue, he accreion of he Group’s ineress in he subsidiary is accouned for as a purchase of equiy ineres for which he acquisiion accouning ehod of accouning is appied. the Group reas a oher changes in group coposiion as equiy ransacions beween he Group and is inoriy sharehoders. Any difference beween he Group’s share of ne asses before and afer he change, and any consideraion received or paid, is adjused o or agains Group reserves.

(v)

transacions eiinaed on consoidaion Inra-group baances incuding any unreaised incoe and expenses arising fro inra-group ransacions, are eiinaed in preparing he consoidaed financia saeens. Unreaised gains arising fro ransacions wih equiy accouned i nvesees are eiinaed agains he invesen o he exen of he Group’s ineres in he invesee. Unreaised osses are eiinaed in he sae way as unreaised gains, bu ony o he exen ha here is no evidence of ipairen.

(vi)

()

transacion coss Coss direcy aribuabe o an acquisiion are incuded as par of he cos of acquisiion.

Ppy, p d pm Propery, pan and equipen are saed a cos ess accuuaed depreciaion and accuuaed ipairen osses. the poicy for he recogniion and easureen of ipairen osses is in accordance wih Noe 2(i). When significan pars of an ie of propery, pan and equipen have differen usefu ives, hey are accouned for as separae ies (ajor coponens) of propery, pan and equipen. Freehod and and capia work-in-progress are no depreciaed. Oher propery, pan and equipen are depreciaed on a sraigh ine basis o wrie off he cos of he asses o heir residua vaues over heir esiaed usefu ives as foows: Buidings and infrasrucure Pan and achinery moor vehices Office equipen Furniure and fiings Esae access road

10 o 40 years 5 o 20 years 5 years 3 o 10 years 5 o 10 years 20 years

Depreciaion ehods, usefu ives and residua vaues are reassessed a he reporing dae. Subsequen expendiure reaing o propery, pan and equipen ha has aready been recognised is added o he carrying aoun of he asse when i is probabe ha fuure econoic benefis wi fow o he Group and he cos can be reiaby easured. Oher subsequen expendiure is recognised as an expense during he financia year in which i is incurred. Gains or osses on disposas are deerined by coparing ne disposa proceeds wih carrying aoun and are recognised in he incoe saeens.

 p 2009

97


2

siGniFicant accountinG Policies (cont’D) (f)

l (i)

Cassificaion A ease is recognised as a finance ease if i ransfers subsaniay o he Group a he risks and rewards incidena o ownership. For eases of and and buidings, he and and buidings eeens are considered separaey for he purpose of ease cassificaion and hese eases are cassified as operaing or finance eases in he sae way as eases of oher asses. A eases ha do no ransfer subsaniay a he risks and rewards are cassified as operaing ease.

(ii)

Finance eases Asses acquired by way of finance eases or hire purchase are saed a an aoun equa o he ower of heir fair vaues and he presen vaue of he iniu ease payens a he incepion of he eases, ess accuuaed depreciaion and ipairen osses. the corresponding iabiiy is incuded in he baance shee as borrowings. In cacuaing he presen vaue of he iniu ease payens, he discoun facor used is he ineres rae ipici in he ease, when i is pracicabe o deerine; oherwise, he Copany’s increena borrowing rae is used. Any iniia direc coss are aso added o he carrying aoun of such asses. lease payens are apporioned beween he finance coss and he reducion of he ousanding iabiiy. Finance coss, which represen he difference beween he oa easing coiens and he fair vaue of he asses acquired, are recognised in he profi and oss over he er of he reevan ease so as o produce a consan periodic rae of charge on he reaining baance of he obigaions for each accouning period. the depreciaion poicy for eased asses is in accordance wih ha for depreciabe propery, pan and equipen as described in Noe 2(e).

(iii)

Operaing ease – he Group as essee the upfron payens ade under an operaing ease are cassified as prepaid ease payens and are aorised o he incoe saeen on a sraigh ine basis over he ease period. Operaing ease payens are recognised as an expense on a sraigh ine basis over he er of he reevan ease. the aggregae benefi of incenives as provided by he essor is recognised as a reducion of rena expense over he ease er on a sraigh ine basis. Iniia direc coss incurred in negoiaing and arranging an operaing ease are added o he carrying aoun of he eased asses and recognised on a sraigh ine basis over he ease er. leasehod ands ha are eased fro he Federa Governen a noina aouns are aso no depreciaed. Oher easehod and is depreciaed over he period of he ease, which ranges fro 29 o 878 years.

(iv)

Operaing ease - he Group as essor Asses eased ou under operaing eases are presened on he baance shees according o he naure of he asses. Rena incoe fro operaing ease is recognised on a sraigh ine basis over he er of he reevan ease.

98


2

siGniFicant accountinG Policies (cont’D) (g)

P dpm pd maure panaions are saed a cos ess accuuaed aorisaion and any ipairen osses. the poicy of recogniion and easureen of ipairen osses is in accordance wih Noe 2(i). Aorisaion is charged o he incoe saeens so as o wrie off he cos of aure panaions, using he sraigh-ine ehod, over he esiaed usefu ives of 25 years, represening he econoic usefu ives of he crops. Coss incurred in he preparaion of he nursery, purchase of seedings and heir ainenance are saed a cos. the accuuaed coss wi be capiaised in panaion deveopen expendiure a he ie of paning. Iaure panaions are saed a cos. the coss of iaure panaions consis ainy of he accuuaed cos of and cearing, paning, feriising and ainaining he panaion, borrowing coss and oher indirec overhead coss up o he ie he rees are harvesabe and o he exen appropriae. the residua vaues and usefu ives of panaion asses are reviewed, and adjused as appropriae, a each baance shee dae.

()

Ppy dpm  (i)

land hed for propery deveopen land hed for propery deveopen is saed a coss ess accuuaed ipairen osses, if any. Such and is cassified as non-curren asse when no significan deveopen work has been carried ou or where deveopen aciviies are no expeced o be copeed wihin he nora operaing cyce. Cos associaed wih he acquisiion of and incudes he purchase price of he and, professiona fees, sap duies, coissions, conversion fees and oher reevan evies. land hed for propery deveopen is recassified as propery deveopen coss a he poin when deveopen aciviies have coenced and where i can be deonsraed ha he deveopen aciviies can be copeed wihin he nora operaing cyce.

(ii)

Propery deveopen coss Propery deveopen coss coprise a cos ha are direcy aribuabe o he deveopen aciviies or ha can be aocaed on a reasonabe basis o such aciviies. they coprise he cos of and under deveopen, consrucion coss and oher reaed deveopen coss coon o he whoe projec incuding professiona fees, sap duies, coissions, conversion fees and oher reevan evies as we as borrowing coss. Ineres coss incurred on financing he deveopen of he projecs are capiaised and incuded as par of deveopen expendiure. the Group considers as curren asses ha porion of propery deveopen expendiure on which significan deveopen work has been done and which is expeced o be copeed wihin he nora operaing cyce of wo o hree years. Propery deveopen coss no recognised as an expense are recognised as an asse easured a he ower of cos and ne reaisabe vaue. When revenue recognised in he incoe saeens exceeds progress biing o purchasers, he baance is cassified as accrued biings under curren asses. When progress biings exceed revenue recognised in he incoe saeens, he baance is cassified as progress biings under curren iabiiies.

 p 2009

99


2

siGniFicant accountinG Policies (cont’D) ()

impm the carrying aoun of asses is reviewed for ipairen when here is an indicaion ha he asses igh be ipaired. For goodwi and inangibe asses ha have indefinie usefu ives or ha are no ye avaiabe for use, recoverabe aoun is esiaed a each reporing dae. Ipairen is easured by coparing he carrying aoun of he asses wih heir recoverabe aouns. the recoverabe aoun is he higher of an asse’s ne seing price and is vaue-in-use, which is easured by reference o discouned fuure cash fows. An ipairen oss is charged o he incoe saeens iediaey. Subsequen increase in he recoverabe aoun of an asse is reaed as reversa of he previous ipair en oss and is recognised o he exen of he carrying aoun of he asse ha woud have been deer ined (ne of aorisaion and depreciaion) had no ipairen oss been recognised. An ipairen oss in respec of goodwi is no reversed. the reversa oher han goodwi is recognised in he incoe saeens iediaey.

(j)

ig  (i)

Goodwi Goodwi arising fro consoidaion represens he excess of he purchase price over he Group’s ineres in he fair vaue of he idenifiabe asses and iabiiies of subsidiary copanies a he dae of acquisiion. Afer iniia recogniion, goodwi is easured a cos ess accuuaed ipairen osses, if any. Goodwi is no aorised bu insead esed for ipairen annuay or ore frequeny if evens or changes in circusances indicae ha he carrying vaue ay be ipaired. Gains and osses on he disposa of an eniy incude he carrying aoun of goodwi reaing o he eniy sod. For he purpose of ipairen esing of goodwi, goodwi is aocaed o each of he Group’s CGU expeced o benefi fro synergies of he business cobinaion. An ipairen oss is recognised in he consoidaed incoe saeen when he carrying aoun of CGU, incuding he goodwi , exceeds he recoverabe aoun of he CGU. Recoverabe aoun of he CGU is he higher of he CGU’s fair vaue ess cos o se and vaue-inuse. the oa ipairen oss is aocaed firs o reduce he carrying aoun of goodwi aocaed o he CGU and hen o he oher asses of he CGU pro-raa on he basis of he carrying aoun of each asse in he CGU. Ipairen oss on goodwi is no reversed in a subsequen period. Goodwi arising on acquisiion of an associae is he excess of cos of invesen over he Group’s share of he ne fair vaue of he associae’s idenifiabe asses, iabiiies and coningen iabiiies a he dae of acquisiion. Goodwi reaing o he associae is incuded in he carrying aoun of he invesen and is no aorised. the excess of he Group’s share of he ne fair vaue of he associae’s idenifiabe asses, iabiiies and coningen iabiiies over he cos of invesen is incuded as incoe in he deerinaion of he Group’s share of he associae’s resus in he period in which he invesen is acquired.

(ii)

tradearks tradearks were acquired hrough business cobinaions. the usefu ife of radearks is esiaed o be indefinie because based on he curren arke share of he brands, anageen beieves here is no foreseeabe ii o he period over which he brands are expeced o generae ne cash fows o he Group. tradearks are saed a cos ess accuuaed ipairen osses, if any. tradearks are no aorised bu insead esed for ipairen annuay or ore frequeny if evens or changes in circusances indicae ha he carrying vaue ay be ipaired.

100


2

siGniFicant accountinG Policies (cont’D) (k)

o m Oher invesens are saed a cos ess accuuaed ipairen osses. the poicy for he recogniion and easureen of ipairen osses is in accordance wih Noe 2(i). On disposa of an invesen, he difference beween he ne disposa proceeds and is carrying aoun is charged or credied o he incoe saeens.

()

i Invenories are saed a he ower of cos and ne reaisabe vaue afer adequae aowance has been ade for a deerioraed, daaged, obsoee or sow-oving invenories. Cos of invenories coprises he origina cos of purchase pus he cos of bringing he invenories o heir inended ocaion and condiion. Ne reaisabe vaue is he esiaed seing price in he ordinary course of business, ess he esiaed coss of copeion and seing expenses. the cos of oi pa producs incudes he cos of raw aerias, direc abour, oher direc cos and a proporion of producion overheads based on nora operaing capaciy of he producion faciiies. Cos of ivesock consiss of origina cos of purchase and oher aribuabe coss in nururing he ivesock o heir saeabe condiion. Cos of consuabes coprises a coss of purchase and cos of nursery consiss of he origina cos of purchase, direc abour and oher reaed overheads. Cos of raw sugar coprises he cos of purchase and incidena coss incurred in bringing he raw sugar o is presen condiion and ocaion. Cos of refined sugar coprises cos of raw sugar and a direc expendiures incurred in he refinery process and incude abour and appropriae producion overheads. Cos of ranshipen socks coprises he weig hed average cos of raw sugar purchased and a direc expendiures and incidenas incurred in bringing he raw sugar o saeabe condiion and ocaion. the cos of paddy and rice coprise coss of purchase. the coss of finished goods coprise coss of paddy and rice, direc aerias, direc abour, oher direc coss and appropriae proporions of producion overheads based on nora operaing capaciy. Pre-cropping expendiure incurred in respec of paddy p aning is incuded as invenories and expensed upon harvesing. the Group is vesed wih he duy o ainain and anage he Governen Rice Sockpie. the invenories of paddy and rice of he Group are discosed ne of he Governen Sockpie. Surpus arising fro he vauaion of invenories aribuabe o he Governen Sockpie is dea wih in he Sockpie Fucuaion Reserve accoun. Any defici in excess of he baance of he Sockpie Fucuaion Reserve is charged o he incoe saeens.

 p 2009

101


2

siGniFicant accountinG Policies (cont’D) (m) r trade and oher receivabes are carried a anicipaed reaisabe vaue. Bad debs are wrien off when idenified. Doubfu debs are provided based on specific review of he receivabes. ()

c d   Cash and cash equivaens incude cash and bank baances, deposis and oher shor er highy iquid invesens ha are readiy converibe o cash and are subjec o insignifican risk of changes in vaue. For he purpose of he cash fow saeens, cash and cash equivaens are presened ne of bank overdrafs and pedged deposis.

()

Py trade and oher payabes are saed a cos which is he fair vaue of he consideraion o be paid in he fuure for goods and services received.

(p)

i g  d wg A oans and borrowings are iniiay recognised a he fair vaue of he consideraion received ess direcy aribuabe ransacion coss. Afer iniia recogniion, ineres-bearing oans and borrowings are subsequeny easured a aorised cos wih any difference beween cos and redepion vaue being recognised in he incoe saeens over he period of he oans and borrowings using he effecive ineres ehod. Ineres reaing o a financia insruen is repored wihin finance cos in he incoe saeens. Borrowings are cassified as curren iabiiies uness he Group has an uncondiiona righ o defer seeen of he iabiiy for a eas weve (12) onhs afer he baance shee dae.

()

P Provisions are recognised when here is a presen obigaion, ega or consrucive, as a resu of a pas even, when i is probabe ha an oufow of resources ebodying econoic benefis wi be required o see he obigaion and a reiabe esiae can be ade of he aoun of he obigaion. Where he effec of he ie vaue of oney is aeria, he aoun of a provision wi be discouned o is presen vaue a a pre-ax rae ha refecs curren arke assessens of he ie vaue of oney and he risks specific o he iabiiy. Provisions are reviewed a each baance shee dae and adjused o refec he curren bes esiae. If i is no onger probabe ha an oufow of resources ebodying econoic benefis wi be required o see he obigaion, he provision wi be reversed. Provisions are no recognised for fuure operaing osses. If he Group has a conrac ha is onerous, he presen obigaion under he conrac sha be recognised and easured as a provision.

()

cg  d g  A coningen asse is a possibe asse ha arises fro pas evens whose exisence wi be confired by he occurrence or non-occurrence of one or ore uncerain fuure evens beyond he conro of he Group. the Group does no recognise coningen asses bu discose is exisence where infows of econoic benefis are probabe, bu no viruay cerain.

102


2

siGniFicant accountinG Policies (cont’D) ()

cg  d g  (’d) A coningen iabiiy is a possibe obigaion ha arises fro pas evens whose exisence wi be confired by he occurrence or non-occurrence of one or ore uncerain fuure evens beyond he conro of he Group or a presen obigaion ha is no recognised because i is no probabe ha an oufow of resources wi be required o see he obigaion. A coningen iabiiy aso arises in exreey rare cases where here is a iabiiy ha canno be recognised because i canno be easured reiaby. the Group does no recognise a coningen iabiiy bu discoses is exisence in he financia saeens. In he acquisiion of subsidiaries by he Group under business cobinaions, coningen iabiiies assued are easured iniiay a heir fair vaues a he acquisiion dae, irrespecive of he exen of any inoriy ineres.

()

bwg  Borrowing coss direcy aribuabe o he acquisiion, consrucion or producion of quaifying asses, which are asses ha necessariy ake a subsania period of ie o ge ready for heir inended use or sae, are capiaised as par of he cos of hose asses, uni such ie as he asses are subsaniay ready for heir inended use or sae. When he borrowings are ade specificay for he purpose of obaining a quaifying asse, he aoun of borrowing coss eigibe for capiaisaion is he acua borrowing coss incurred on ha borrowing during he period ess any invesen incoe on he eporary invesen of funds drawndown fro ha borrowing faciiy. When he borrowings are ade generay, and used for he purpose of obaining a quaifying asse, he borrowing coss eigibe for capiaisaion are deerined by appying a capiaisaion rae which is he weighed average of he borrowing coss appicabe o he borrowings ha are ousanding during he financia year. A oher borrowing coss are recognised as an expense in he incoe saeens in he period in which hey are incurred.

()

Fg  transacions in foreign currencies are convered ino Ringgi maaysia a raes of exchange ruing a he ransacion daes. moneary asses and iabiiies in foreign currencies a he baance shee dae are ransaed ino Ringgi maaysia a raes of exchange ruing a ha dae uness hedged by forward foreign exchange conracs, in which case he raes specified in such forward conracs are used. A exchange differences arising fro he seeen of foreign currency ransacions and fro he ransaion of foreign currency oneary asses and iabiiies are recognised in he incoe saeens in he period in which hey arise. Non-oneary ies iniiay denoinaed in foreign currencies, which are carried a hisorica cos are ransaed using he hisorica rae as of he dae of acquisiion, and non-oneary ies which are carried a fair vaue are ransaed using he exchange rae ha exised when he vaues were deerined for presenaion currency purposes. the resus and financia posiion of a he group eniies (none of which has he currency of a hyperinfaionary econoy) ha have a funciona currency differen fro he presenaion currency are ransaed ino he presenaion currency as foows: (i)

asses and iabiiies for each baance shee presened are ransaed a he cosing rae a he dae of ha baance shee;

(ii)

incoe and expenses for each incoe saeen are ransaed a average exchange raes (uness his average is no a reasonabe approxiaion of he cuuaive effec of he raes prevaiing on he ransacion daes, in which case incoe and expenses are ransaed a he daes of he ransacions); and

(iii)

a resuing exchange differences are recognised as a separae coponen of equiy.

 p 2009

103


2

siGniFicant accountinG Policies (cont’D) ()

Fg  (’d) On consoidaion, exchange differences arising fro he ransaion of he ne invesen in foreign eniies, and of borrowings, are aken o sharehoders’ equiy. When a foreign operaion is sod or dissoved, such exchange differences are recognised in he incoe saeens as par of he gain or oss on sae or dissouion. Goodwi and fair vaue adjusens arising on he acquisiion of a foreign eniy are reaed as asses and iabiiies of he foreign eniy and ransaed a he cosing rae. the principa exchange rae used for every uni of foreign currencies ruing a he baance shee dae used is as foows:-

1 Unied Saes Doar (USD)

()

2009 Rm

2008 Rm

3.42

3.46

im  Incoe ax on he profi or oss for he financia year coprises curren and deferred ax. Curren ax is he expeced aoun of incoe axes payabe in respec of he axabe profi for he financia year and is easured using he ax raes ha have been enaced a he baance shee dae. Deferred ax is provided for, using he iabiiy ehod, on eporary differences a he baance shee dae beween he ax bases of asses and iabiiies and heir carrying aouns in he financia saeens. Deferred ax iabiiies are recognised for a axabe eporary differences and deferred ax asses are recognised for a deducibe eporary differences, unused ax osses and unuiised ax credis o he exen ha i is probabe ha fuure axabe profi wi be avaiabe agains which he deducibe eporary differences, unused ax osses and unuiised ax credis can be uiised. Deferred ax is no recognised if he eporary difference arises fro goodwi or negaive goodwi or fro he iniia recogniion of an asse or iabiiy in a ransacion which is no a business cobinaion and a he ie of he ransacion, affecs neiher accouning profi nor axabe profi. Deferred ax is easured a he ax raes ha are expeced o appy in he period when he asse is reaised or he iabiiy is seed, based on ax raes ha have been enaced or subsanivey enaced a he baance shee dae. Deferred ax is recognised in he incoe saeens, excep when i arises fro a ransacion which is recognised direcy in equiy, in which case he deferred ax is aso charged or credied direcy in equiy, or when i arises fro a business cobinaion ha is an acquisiion, in which case he deferred ax is incuded in he resuing goodwi or negaive goodwi.

()

empy f (i)

Shor er benefis Wages, saaries, bonuses and socia securiy conribuions are recognised as an expense in he financia year in which he associaed services are rendered by epoyees of he Group. Shor er accuuaing copensaed absences such as paid annua eave are recognised when services are rendered by epoyees ha increase heir enieen o fuure copensaed absences. Shor er non-accuuaing copensaed absences such as sick eave are recognised when he absences occur.

104


2

siGniFicant accountinG Policies (cont’D) ()

empy f (’d) (ii)

terinaion benefis terinaion benefis are payens due o epoyees as a resu of he erinaion of epoyen before he nora reireen dae or o encourage vounary redundancy. they are recognised as a iabiiy and as an expense when he Group has a deaied fora pan for erinaion wih no reaisic possibiiy of wihdrawa. In he case of vounary redundancy, he benefis are accouned for based on he nuber of epoyees expeced o accep he offer.

(iii)

Defined conribuion pans the Group’s conribuions o defined conribuion pans are charged o he incoe saeens in he period o which hey reae. Once he conribuions have been paid, he Group has no furher payen obigaions. As required by aw, copanies in maaysia ake conribuions o he sae pension schee, he Epoyees Providen Fund (“EPF”).

(iv)

Funded defined benefi pans A subsidiary copany operaes a funded defined benefi Reireen Benefi Schee (“he Schee”) for is eigibe epoyees. the subsidiary copany’s obigaions under he Schee are deerined based on riennia vauaion where he aoun of benefi ha epoyees have earned in reurn for heir service in he curren and prior years is esiaed. tha benefi is discouned using he Projeced Uni Credi mehod i n order o deerine is presen vaue. Acuaria gains and osses are recognised as incoe or expense over he expeced average reaining working ives of he paricipaing epoyees when he cuuaive recognised acuaria gains or osses for he Schee exceed 10% of he higher of he presen vaue of he defined benefi obigaions and he fair vaue of he pan asses. Pas service cos is recognised iediaey o he exen ha he benefis are aready vesed. Oherwise, i wi be aorised on a sraigh-ine basis over he average period uni he aended benefis becoe vesed. the aoun recognised in he baance shee represens he presen vaue of he defined benefi obigaions adjused for recognised acuaria gains and osses and recognised pas service cos, and reduced by he fair vaue of pan asses. Any asse resuing fro his cacuaion is iied o he ne oa of any recognised acuaria osses and pas service cos, and he presen vaue of any econoic benefis in he for of refunds or reducions in fuure conribuions o he pan.

(v)

(w)

Unfunded defined benefi pans Cerain subsidiary copanies provide for reireen benefis for eigibe epoyees on an unfunded defined benefi basis in accordance wih he ers of he Group’s poicies. Fu provision has been ade for reireen benefis payabe o a eigibe epoyees who have copeed heir quaifying period of service, based on heir as drawn saaries as se ou in he poicies. tha benefi is discouned using he Projeced Uni Credi mehod in order o deerine is presen vaue. Shoud an epoyee eave afer copeing he quaifying period of service bu before aaining he reireen age, he provision ade for he epoyee is wrien back.

r g (i)

Revenue fro sae of goods is easured a he fair vaue of he consideraion receivabe and is recognised when he significan risks and rewards of ownership have been ransferred o he buyer. Revenue is no recognised o he exen where here are sig nifican uncerainies regarding recovery of he consideraion due, associaed coss or he possibe reurn of goods.

 p 2009

105


2

siGniFicant accountinG Policies (cont’D) (w)

r g (’d) (ii)

Propery deveopen revenue is recognised in respec of a deveopen unis ha have been sod. Revenue recogniion coences when he sae of he deveopen uni is effeced, upon he coenceen of deveopen and consrucion aciviies and when he financia oucoe can be reiaby esiaed. the aribuabe porion of propery deveopen cos is recognised as an expense in he period in which he reaed revenue is recognised. the aoun of such revenue and expenses recognised is deerined by reference o he sage of copeion of deveopen aciviy a he baance shee dae. the sage of copeion is easured by reference o he proporion ha propery deveopen coss incurred for work perfored o dae bear o he esiaed oa propery deveopen cos. When he financia oucoe of a deveopen aciviy canno be reiaby esiaed, he propery deveopen revenue is recognised ony o he exen of propery deveopen coss incurred ha is probabe o be recoverabe and he propery deveopen coss on he deveopen unis sod are recognised as an expense in he period in which hey are incurred. Any expeced oss on a deveopen projec is recognised as an expense iediaey, incuding coss o be incurred over he defecs iabiiy period.

()

(iii)

Revenue fro services rendered is recognised in he incoe saeens upon perforance of services and is easured a he fair vaue of he consideraion receivabe.

(iv)

Ineres incoe is recognised on a ie proporion basis ha akes ino accoun he effecive yied on he asse.

(v)

Dividend incoe is recognised when he sharehoder’s righ o receive payen is esabished.

(vi)

Rena incoe is recognised on an accrua basis over he er of an ongoing ease.

Gm g Governen grans are recognised a fair vaues where here is reasonabe assurance ha he grans wi be received and he Group wi copy wih a aached condiions. Governen grans reaing o incoe are recognised in he incoe saeens o ach he wih he cos hey are inended o copensae.

(y)

sgm pg Segen reporing is presened for enhanced assessen of he Group’s risks and reurns. Business segens provide producs or services ha are subjec o risks and reurns ha are differen fro hose of oher business segens. Geographica segens provide producs or services wihin a paricuar econoic environen ha is subjec o risks and reurns ha are differen fro hose coponens operaing in oher econoic environens. Segen revenue, expense, asses and iabiiies are hose aouns resuing fro he operaing aciviies of a segen ha are direcy aribuabe o he segen and he reevan porion ha can be aocaed on a reasonabe basis o he segen. Segen revenue, expense, asses and iabiiies are deerined before inragroup baances and inragroup ransacions are eiinaed as par of he consoidaion process, excep o he exen ha such inragroup baances and ransacions are beween Group enerprises wihin a singe eeen.

106


2

siGniFicant accountinG Policies (cont’D) (z)

eg p  the Group presens basic earnings per share (“EPS”) daa for is ordinary shares. Basic EPS is cacuaed by dividing he profi or oss aribuabe o ordinary sharehoders of he Copany by he weighed average nuber of ordinary shares ousanding during he period and ordinary shares ha wi be issued upon he conversion of andaoriy converibe insruens fro he dae he conrac is enered ino.

() F m Financia insruens carried on he baance shee incude cash and bank baances, deposis, invesens, receivabes, payabes and borrowings. Financia insruens are recognised in he baance shees when he Group has becoe a pary o he conracua provisions of he insruen. Financia insruens are cassified as iabiiies or equiy in accordance wih he subsance of he conracua arrangeen. Ineres, dividends and gains and osses reaing o a financia insruen cassified as a iabiiy are repored as expense or incoe. Disribuions o hoders of financia insruens cassified as equiy are charged direcy o equiy. Financia insruens are offse when he Group has a egay enforceabe righ o offse and inends o see eiher on a ne basis or o recognise he asse and see he iabiiy siuaneousy. Ordinary shares are cassified as equiy. Dividends on ordinary shares are recognised in equiy in he year in which hey are decared. the paricuar recogniion ehod adoped for financia insruens recognised on he baance shees is discosed in he individua accouning poicy saeens associaed wih each ie. there is no financia insruen no recognised on he baance shees of he Group and of he Copany.

() n-  ( dp gp) d f  Non-curren asses (or disposa groups) are cassified as hed for sae if heir carrying aouns wi be recovered principay hrough a sae ransacion raher han hrough coninuing use. For his o be he case, he asse (or di sposa group) us be avaiabe for iediae sae in is presen condiion subjec ony o ers ha are usua and cusoary for saes of such asses (or disposa groups) and is sae us be highy probabe. Iediaey before he iniia cassificaion as hed for sae, he carrying aouns of he non-curren asses (or a he asses and iabiiies in a disposa group) are easured in accordance wih appicabe FRSs. On iniia cassificaion as hed for sae, non-curren asses or disposa groups (oher han invesen properies, deferred ax asses, epoyee benefis asses, and financia asses carried a fair vaue) are easured a he ower of carrying aoun before he iniia cassificaion as hed for sae and fair vaue ess coss o se. the differences, if any, are recognised in incoe saeens as ipairen oss. Non-curren asses (or disposa groups) hed for sae are cassified as curren asses (and curren iabiiies, in he case of non-curren iabiiies incuded wihin disposa groups) on he face of he baance shee and are saed a he ower of carrying aoun iediaey before iniia cassificaion and fair vaue ess coss o se and are no depreciaed. Any cuuaive incoe or expense recognised direcy in equiy reaing o he non-curren asse (or disposa group) cassified as hed for sae is presened separaey.

 p 2009

107


2

siGniFicant accountinG Policies (cont’D) () n-  ( dp gp) d f  (’d) If he Group has cassified an asse (or disposa group) as hed for sae bu subsequeny he crieria for cassificaion is no onger e, he Group ceases o cassify he asse (or disposa group) as hed for sae. the Group easures a non-curren asse ha ceases o be cassified as hed for sae (or ceases o be incuded in a disposa group cassified as hed for sae) a he ower of:

3.

(a)

is carrying aoun before he asse (or disposa group) was cassified as hed for sae, adjused for any depreciaion, aorisaion or revauaions ha woud have been recognised had he asse (or disposa group) no been cassified as hed for sae; and

(b)

is recoverabe aoun a he dae of he subsequen decision of no o se.

ProPertY, Plant anD equiPMent

Fold ld rM’000

Goup

2009 co A 1.1.2009 Addiions Acquisiion of subsidiary companies (Noe 7) Disposals Wrie-off Exchange differences transfer o asses held for sale (Noe 18) Reclassificaion A 31.12.2009

buildig d if- Pl d uu miy rM’000 rM’000

Fuiu, fiig Moo d offi vil quipm rM’000 rM’000

e  od rM’000

cpil wok-ipog rM’000

tol rM’000

66,675 —

303,453 6,327

523,903 48,382

67,173 8,469

40,743 10,229

73,312 7,431

31,746 33,830

1,107,005 114,668

36,923 — — — — —

118,136 — (669) 77 — 4,839

244,984 (320) (15,545) 27 (5,500) 8,696

30,940 (1,149) (3,114) 4 — 2,267

84,257 (5) (1,351) 2 — (5,734)

— — — — — 14,264

46,095 — — — — (24,332)

561,335 (1,474) (20,679) 110 (5,500) —

103,598

432,163

804,627

104,590

128,141

95,007

87,339

1,755,465

aumuld dpiio A 1.1.2009 Charge for he financial year Acquisiion of subsidiary companies (Noe 7) Disposals Wrie-off Exchange differences transfer o asses held for sale (Noe 18) Reclassificaion

— —

141,522 12,884

338,342 36,295

48,935 9,165

24,702 4,760

26,041 4,377

— —

579,542 67,481

— — — — — —

21,810 — (616) 68 — (8)

118,564 (319) (15,020) 23 (4,716) 467

20,942 (1,042) (3,093) 2 — 1,002

59,405 (3) (1,335) 3 — (2,612)

— — — — — 1,151

— — — — — —

220,721 (1,364) (20,064) 96 (4,716) —

A 31.12.2009

—

175,660

473,636

75,911

84,920

31,569

—

841,696

103,598

256,503

330,991

28,679

43,221

63,438

87,339

913,769

Carrying amoun A 31.12.2009

108


3.

ProPertY, Plant anD equiPMent (cont’D)

Goup

2008 co A 1.1.2008 Addiions Disposals Wrie-off Exchange differences transfer from asses held for sale (Noe 18) transfer o asses held for sale (Noe 18) Reclassificaion A 31.12.2008

aumuld dpiio A 1.1.2008 Charge for he financial year Disposals Wrie-off Exchange differences transfer from asses held for sale (Noe 18) transfer o asses held for sale (Noe 18) Reclassificaion A 31.12.2008

cyig mou A 31.12.2008

Fold ld rM’000

buildig d if- Pl d uu miy rM’000 rM’000

66,429 — — — 246

277,260 16,059 — (654) 370

— — —

7,930 (1,819) 4,307

462,484 54,435 (210) (89) 120

Fuiu, fiig Moo d offi vil quipm rM’000 rM’000

60,719 9,653 (792) (2,189) —

e  od rM’000

cpil wok-ipog rM’000

tol rM’000

32,173 4,489 (118) (637) 8

65,823 5,146 — — —

21,174 29,343 — — —

986,062 119,125 (1,120) (3,569) 744

— — 7,163

— — (218)

743 — 4,085

— — 2,343

(1,091) — (17,680)

7,582 (1,819) —

66,675

303,453

523,903

67,173

40,743

73,312

31,746

1,107,005

— — — — —

125,899 12,873 — (654) 328

306,727 31,409 (210) (88) 109

44,735 6,955 (792) (2,188) —

20,448 3,014 (113) (619) 7

22,060 3,616 — — —

— — — — —

519,869 57,867 (1,115) (3,549) 444

— — —

7,123 (1,365) (2,682)

— — 395

— — 225

268 — 1,697

— — 365

— — —

7,391 (1,365) —

—

141,522

338,342

48,935

24,702

26,041

—

579,542

66,675

161,931

185,561

18,238

16,041

47,271

31,746

527,463

 p 2009

109


3.

ProPertY, Plant anD equiPMent (cont’D)

M  rM’000

cmpy

F, fg d ff pm rM’000

t rM’000

2009 c A 1.1.2009 Addiions Disposa Wrie-off

1,744 6 (592) —

1,580 66 (5) (419)

3,324 72 (597) (419)

A 31.12.2009

1,158

1,222

2,380

amd dp A 1.1.2009 Charge for he financia year Disposa Wrie-off

1,168 432 (552) —

1,338 127 (4) (419)

2,506 559 (556) (419)

A 31.12.2009

1,048

1,042

2,090

110

180

290

cyg m A 31.12.2009

2008 c A 1.1.2008 Addiions Disposa

1,706 145 (107)

1,505 75 —

3,211 220 (107)

A 31.12.2008

1,744

1,580

3,324

1,153 185 —

1,969 644 (107)

1,168

1,338

2,506

576

242

818

amd dp A 1.1.2008 Charge for he financia year Disposa

816 459 (107)

A 31.12.2008

cyg m A 31.12.2008

110


3.

ProPertY, Plant anD equiPMent (cont’D) the ne carrying aoun of propery, pan and equipen charged o icensed banks for credi faciiies graned o he Group, as discosed in Noe 23 are as foows:

cmpy 2009 2008 rM’000 rM’000 Freehod and Buidings and infrasrucure Pan and achinery

4.

27,658 49,706 58,218

20,351 39,819 46,704

135,582

106,874

s m d d rM’000

t rM’000

PrePaiD lease PaYMents lg m d d rM’000

Gp

2009 c A 1 January Addiions Disposa Acquisiion of subsidiary copanies [Noe 7(d)] terinaion of ease [Noe 44(f)] A 31 Deceber

982,903 — (58) 55,130 (26,000) 1,011,975

50,322 479 (9) 1,142 —

1,033,225 479 (67) 56,272 (26,000)

51,934

1,063,909

amd m A 1 January Charge for he financia year Disposa Acquisiion of subsidiary copanies [Noe 7(d)] terinaion of ease [Noe 44(f)]

65,118 13,068 (1) 6,465 (5,275)

A 31 Deceber

79,375

10,120

89,495

932,600

41,814

974,414

cyg m A 31 Deceber 2009

 p 2009

8,908 1,136 (2) 78 —

111

74,026 14,204 (3) 6,543 (5,275)


4.

PrePaiD lease PaYMents (cont’D) lg m d d rM’000

Gp

s m d d rM’000

2008 c A 1 January Disposa Acquisiion of subsidiary copanies [Noe 7(e)] Recassificaion

687,486 (146) 299,743 (4,180)

46,142 — — 4,180

A 31 Deceber

982,903

50,322

t rM’000

733,628 (146) 299,743 — 1,033,225

amd m A 1 January Charge for he financia year Disposa Acquisiion of subsidiary copanies [Noe 7(e)] Recassificaion

53,415 12,131 (10) 230 (648)

7,111 1,149 — — 648

60,526 13,280 (10) 230 —

A 31 Deceber

65,118

8,908

74,026

917,785

41,414

959,199

cyg m A 31 Deceber 2008

the prepaid ease payens can be anaysed as foows:

Gp

Shor er (unexpired ease period ess han 50 years) long er (unexpired ease period ore han 50 years)

2009 rM’000

2008 rM’000

41,814 932,600

41,414 917,785

974,414

959,199

(a)

the above prepaid ease payens consis of upfron payens ade for easehod ands.

(b)

the reaining period of ease er range fro 29 years o 878 years (2008: 30 years o 879 years).

(c)

the ne carrying aoun of easehod and ha has been charged for faciiies graned o he Group as discosed in Noe 23 is Rm476,155,000 (2008: Rm471,657,000).

(d)

During he financia year, he and ie of easehod and of a subsidiary wih a carrying aoun of Rm15,718,000 (2008: Rm16,052,000) was issued by he reevan auhoriy.

(e)

In he previous financia year, he Group subied he appicaion o discharge he charges on a parce of easehod and wih a oa carrying aoun of Rm22,215,000 (2008: Rm22,481,000). the discharge of he charge was copeed during he financia year.

112


5.

Plantation DeveloPMent exPenDiture Gp 2009 rM’000

2008 rM’000

c A 1 January Addiions Wrie-off Asses reired fro use Exchange differences

1,265,700 122,124 (209) — 340

1,175,710 99,315 (4,598) (5,952) 1,225

A 31 Deceber

1,387,955

1,265,700

amd m A 1 January Charge for he financia year Wrie-off Asses reired fro use Exchange differences

293,287 44,197 (55) — 95

255,339 44,437 (920) (5,952) 383

A 31 Deceber

337,524

293,287

cyg m A 31 Deceber

1,050,431

972,413

(a)

Incuded in addiions of panaion deveopen expendiure for he financia year are he foowing:

Gp 2009 rM’000 Depreciaion of propery, pan and equipen Ineres on borrowings Raw aerias and consuabes used Saff coss Ne incoe fro scou harvesing

2,478 9,903 33,493 17,691 (3,321)

2008 rM’000 2,193 7,287 25,921 11,279 (2,707)

Incuded in saff coss are conribuions ade o a defined conribuion pan aouning o Rm702,000 (2008: Rm660,000).

 p 2009

113


5.

Plantation DeveloPMent exPenDiture (cont’D) (b)

Addiions of panaion deveopen expendiure:

Gp 2009 rM’000

2008 rM’000

Addiions of panaion deveopen expendiure less : Depreciaion capiaised in panaion deveopen expendiure Ineres capiaised in panaion deveopen expendiure

122,124 (2,478) (9,903)

99,315 (2,193) (7,287)

Cash payens on addiions of panaion deveopen expendiure

109,743

89,835

(c)

the ne carrying aoun of panaion deveopen expendiure charged o icensed banks for credi faciiies graned o he Group as discosed in Noe 23 is Rm812,947,000 (2008: Rm760,555,000).

(d)

Reus Panaion Sdn Bhd (“RPSB”), a subsidiary copany of he Copany paned oi pa rees on approxiaey 1,517 hecares of and (“he land”) which beongs o he Sarawak Sae Governen. toa carrying vaue of he panaion deveopen expendiure incurred on he land as a 31 Deceber 2009 was approxiaey Rm18,389,000. RPSB subied an appicaion o he Sae land and Survey Deparen for he aienaion of 830 hecares of he land o RPSB in 2005. However, 768 hecares of he appied area (“Aienaed land”) were aienaed o masreus Oi Pa Panaion Sdn Bhd (“masreus”). As discosed in Noe 7(d)(i), RPSB has acquired he enire issued and paid-up capia of masreus and subsequeny assued ownership of he Aienaed land. the carrying vaue of he panaion deveopen expendiure incurred on he Aienaed land of 768 hecares as a 31 Deceber 2009 was approxiaey Rm11,026,000. As for he reaining 749 hecares, RPSB is awaiing he cearance fro he Sae land and Survey Deparen o subi he appicaion for he aienaion of his and. the carrying vaue of he panaion deveopen expendiure incurred on he 749 hecares as a 31 Deceber 2009 was approxiaey Rm7,363,000. the Direcors of RPSB are of he opinion ha he panaion deveopen expendiure incurred on he overpaned area of 749 hecares is fuy recoverabe. In he even RPSB is unsuccessfu in he appicaion for he aienaion of he reaining 749 hecares, RPSB woud no be abe o recover he panaion deveopen expendiure incurred of approxiaey Rm7,363,000 and consequeny his aoun ay have o be wrien off o he incoe saeen. RPSB harvesed fresh frui bunches in he curren and previous financia years fro he paned and which is ouside is and boundary. RPSB wi coninue o harves fro he reaining 749 hecares and foresee o be abe o do so in he foreseeabe fuure, uni such a ie when he and is aienaed o hird paries, if ever.

114


6.

lanD helD For ProPertY DeveloPMent Gp 2009 rM’000

2008 rM’000

lg m d d   A 1 January Acquisiion of subsidiary copanies [Noe 7(d)(ii)]

— 87,412

— —

A 31 Deceber

87,412

—

the above easehod and represens maay reserve and and he curren usage of he enire and is for agricuure purposes, bu a porion of i has he benefi of an approved maser Pan for he deveopen of a second border own, as discosed in Noe 7(d)(ii).

7.

investMent in subsiDiarY coMPanies Gp 2009 rM’000

2008 rM’000

cmpy 2009 2008 rM’000 rM’000

Quoed shares, a cos Unquoed shares, a cos Pos acquisiion reserves

— 7,714 (1,654)

— 7,714 (1,654)

1,083,139 302,961 —

590,645 302,961 —

Accuuaed ipairen oss

6,060 (6,060)

6,060 (6,060)

1,386,100 —

893,606 —

Quoed shares, a arke vaue

—

—

1,386,100

893,606

—

—

1,054,173

527,867

(a)

the above invesen in subsidiary copanies a Group eve represens invesen in an unconsoidaed subsidiary copany as expained in Noe 45(a).

(b)

During he financia year, he Copany acquired 50.33% equiy ineres in Padiberas Nasiona Berhad (“BERNAS”), a copany incorporaed and doicied in maaysia, and is ised on he main marke of Bursa maaysia Securiies Berhad. Deais of he acquisiion are expained in Noe 7(d)(iii).

(c)

Deais of he subsidiary copanies and sharehodings herein are shown in Noe 45(a).

 p 2009

115


7.

investMent in subsiDiarY coMPanies (cont’D) (d)

Acquisiion of subsidiary copanies during he financia year (i)

Acquisiion of masreus Oi Pa Panaion Sdn Bhd (“masreus”) On 3 Apri 2009, Reus Panaion Sdn Bhd, a subsidiary copany of he Copany acquired he enire equiy ineres of masreus. Goodwi arising on he acquisiion aouning o Rm2,142,000 has been accouned for using he purchase ehod of accouning and is discosed in Noe 11. the effec of he acquisiion on he financia resus of he Group during he financia year is as foows:

rM Revenue loss for he period

— (7,137)

there was no aeria effec o he Group’s financia resus for he curren financia year if he acquisiion had been copeed on 1 January 2009. the asses acquired and iabiiies assued as a dae of acquisiion were as foows:

a’ yg m rM’000 Prepaid ease payens for and Receivabes Payabes Deferred ax iabiiies toa ne asses

F  gd   rM’000

557 66 (545) —

7,208 66 (545) (1,663)

78

5,066

Goodwi on consoidaion

2,142

Cash fow on acquisiion

7,208

116


7.


Acquisiion of subsidiary copanies during he financia year (con’d) (ii) Acquisiion of Norhern Inergraed Agricuure Sdn Bhd (“NIA”) On 21 Augus 2009, tradewinds Panaion Berhad, a subsidiary copany of he Copany enered ino a condiiona Sae and Purchase Agreeen wih Gerak mashyur (maaysia) Sdn Bhd (“GmSB”) for he acquisiion of 700,000 ordinary shares of Rm1.00 each, represening 70% of he equiy ineres, of NIA for a oa cash consideraion of Rm50.36 iion. the purchase consideraion was adjused o Rm49.32 iion upon he copeion of assessen of he acquiree’s idenifiabe asses, iabiiies, and coningen iabiiies based on due diigence repor. NIA is a propery deveopen copany incorporaed in maaysia and was esabished as a join venure vehice beween GmSB and Perbadanan Keajuan Negeri Kedah o underake he deveopen of he second border own beween maaysia and thaiand known as “Bandar Sepadan Koa Pura”. NIA owns 5 parces of easehod agricuure and ocaed a Koa Pura, muki Baang tunggang Kiri, Daerah Padang terap, Negeri Kedah easuring in aggregae approxiaey 2,612.99 acres (“NIA lands”) of which 169.44 acres had been surrendered o he Governen foowing he copeion of heir projec in Noveber 2008. 1,115.02 acres of he NIA lands had been paned wih rubber rees whis an approved aser pan for he deveopen of Bandar Sepadan Koa Pura had been obained for he reaining and. the acquisiion of NIA was copeed on 23 Ocober 2009. the effec of he acquisiion on he financia resus of he Group during he financia year is as foows:

D f   31.12.2009 rM’000 Revenue Profi for he period

— 1,073

If he acquisiion had been copeed on 1 January 2009, he Group revenue and profi for he financia year woud have been Rm2,071,959,000 and Rm173,025,000 respecivey.

 p 2009

117


7.


Acquisiion of subsidiary copanies during he financia year (con’d) (ii) Acquisiion of Norhern Inergraed Agricuure Sdn Bhd (“NIA”) (con’d) the acquisiion had he foowing effec on he Group’s asses and iabiiies on acquisiion dae:

a’ yg m rM’000 Prepaid ease payens for and Propery, pan and equipen land hed for deveopen Oher receivabes Fixed deposi wih a icensed bank Cash and bank baances trade and oher payabes tax payabes Deferred ax iabiiy toa ne asses

F  gd   rM’000

3,313 103 4,148 26 1,429 3,037 (7,869) (729) —

12,265 103 87,412 26 1,429 3,037 (7,869) (729) (23,054)

3,458

72,620

less: minoriy ineres

(iii)

(21,786)

Group’s share of ne asses Excess of fair vaue of ne asses acquired over purchase consideraion

50,834 (1,519)

Adjused purchase consideraion discharged by cash less: Cash and cash equivaens acquired

49,315 (3,037)

Cash ou fow on acquisiion, ne of cash and cash equivaens acquired

46,278

Acquisiion of Padiberas Nasiona Berhad (“BERNAS”) As discosed in Noe 44(a)(i), he Copany acquired 50.33% equiy ineres in BERNAS during he financia year. the effec of he acquisiion on he financia resus of he Group during he financia year is as foows:

D f   31.12.2009 rM’000 Revenue Profi for he period

334,159 16,487

If he acquisiion was copeed on 1 January 2009, he Group revenue and profi for he financia year woud have been Rm4,995,115,000 and Rm334,789,000 respecivey.

118


7.


Acquisiion of subsidiary copanies during he financia year (con’d) (iii) Acquisiion of Padiberas Nasiona Berhad (“BERNAS”) (con’d) the acquisiion had he foowing effec on he Group’s asses and iabiiies on acquisiion dae:

a’ yg m rM’000 Prepaid ease payens for and Propery, pan and equipen Invesen in associaed copanies Oher invesen Inangibe asses - radearks Invenories trade and oher receivabes Fixed deposi wih a icensed bank Cash and bank baances trade and oher payabes Bank borrowings tax payabes (ne) Provision for reireen benefis Deferred axaion (ne) toa ne asses

30,256 340,511 249,187 40 140 542,040 730,875 66,196 135,971 (215,717) (762,358) (6,323) (66,156) 25,233 1,069,895

less: minoriy ineres

30,256 340,511 249,187 40 140 542,040 730,875 66,196 135,971 (215,717) (762,358) (6,323) (66,156) 25,233 1,069,895

(564,833)

Group’s share of ne asses Excess of fair vaue over purchase consideraion

505,062 (12,568)

Adjused purchase consideraion discharged by cash less: Disribuion of pre-acquisiion reserve by associaed copanies less: Cash and cash equivaens acquired

492,494 (11,807) (144,992)

Cash ou fow on acquisiion, ne of cash and cash equivaens acquired (iv)

F  gd   rM’000

335,695

Acquisiion of Prisa Spekra Sdn Bhd (“PSSB”) As discosed in Noe 44(a)(iv), tradewinds Panaion Berhad acquired he enire equiy ineres of PSSB for a cash consideraion of Rm2 on 26 Ocober 2009. PSSB is an invesen hoding copany. the asses acquired and iabiiies assued as a he dae of acquisiion, he effec of he acquisiion on he financia resus of he Group and he financia resus prior o he dae of acquisiion are no aeria in reaion o he Group’s asses and iabiiies and financia resus for he curren financia year.

 p 2009

119


7.

investMent in subsiDiarY coMPanies (cont’D) (e)

Acquisiion of subsidiary copanies in he previous financia year (i) Acquisiion of Usaha Wawasan Sdn Bhd (“UWSB”) On 31 January 2009, he Group copeed he acquisiion of 70% equiy ineres in Usaha Wawasan Sdn Bhd a a purchase price of Rm15,882,000. Goodwi arising on he acquisiion aouning o Rm3,859,000 has been accouned for using he purchase ehod of accouning and is discosed in Noe 11. the effec of he acquisiion on he financia resus of he Group during he previous financia year was as foows:

D f   31.12.2008 rM’000 Revenue loss for he period

— (330)

the asses acquired and iabiiies assued as a dae of acquisiion were as foows:

a’ yg m rM’000

F  gd   rM’000

Prepaid ease payens for and Oher payabes Deferred ax iabiiies

22,593 (38) (5,379)

22,593 (38) (5,379)

toa ne asses less: minoriy ineress

17,176

17,176 (5,153)

Group’s share of ne asses Goodwi on consoidaion

12,023 3,859

less: Deposi paid in previous financia

15,882 (1,598)

Cash fow on acquisiion

14,284

there was no aeria effec o he Group’s financia resus for he previous financia year if he acquisiion had been copeed on 1 January 2008.

120


7.

investMent in subsiDiarY coMPanies (cont’D) (e)

Acquisiion of subsidiary copanies in he previous financia year (con’d) (ii) Acquisiion of tradewinds Corridor Sdn Bhd (“tCSB”) On 30 Apri 2007, he Group via a subsidiary copany tradewinds Panaion Berhad (“tPB”), enered ino a condiiona Subscripion Agreeen for he proposed subscripion of 100,000,000 new ordinary shares of Rm1.00 each in tradewinds Corridor Sdn Bhd (“tCSB”) a a oa cash subscripion price of Rm268 iion (“Proposed Subscripion”). the Proposed Subscripion was condiiona upon he copeio n of he agreeen daed 18 Apri 2007 beween Gua Padang terap Panaions Sdn Bhd (“GPtP”) and tCSB whereby GPtP had agreed o se and ransfer o tCSB he eases graned by Perbadanan Keajuan Negeri Kedah, hed by and regisered in he nae of GPtP, over 54 parces of  easehod agricuure and easuring approxiaey 11,411 hecares for a cash consideraion of Rm268 iion. the Proposed Subscripion was copeed on 18 march 2008 and hereafer tCSB becae a 99.9% subsidiary of he Copany. the effec of he acquisiion on he financia resus of he Group during he previous financia year was as foows: D f   31.12.2008 rM’000 Revenue loss for he period

568 (3,021)

the asses acquired and iabiiies assued as a dae of subscripion were as foows:

a’ yg m rM’000

F  gd   rM’000

Prepaid ease payens for and Oher receivabe Bank baances Oher payabes

276,920 319 180 (9,419)

276,920 319 180 (9,419)

toa ne asses

268,000

268,000

less: Deposi paid in previous financia year Cash and cash equivaens acquired

(26,800) (180)

Cash fow on subscripion, ne of cash and cash equivaens acquired

241,020

there was no aeria effec o he Group’s financia resus for he previous financia year if he acquisiion had been copeed on 1 January 2008.

 p 2009

121


8.

investMent in associateD coMPanies Gp 2009 rM’000

2008 rM’000

Unquoed shares ouside maaysia, a cos Unquoed shares in maaysia, a cos Share of pos acquisiion reserves Disribuion of pre-acquisiion reserve

14,465 227,004 2,661 (11,807)

15,510 — 119,701 —

Disribuion of pos acquisiion reserve Exchange adjusen

232,323 — —

135,211 (126,683) 12,304

232,323

20,832

Deais of he associaed copanies and sharehodings herein are shown in Noe 45(b). As discosed in Noe 44(b), tma l iied, a 20% owned associae of Quek Shin & Sons Pe ld, which is an indirec subsidiary of he Copany was vounariy dissoved on 30 Sepeber 2009. the dissouion of he associaed copany had resued in he reaisaion of exchange reserves of approxiaey Rm16,351,000 during he financia year. the suarised financia inforaion of he associaed copanies are as foows:

Gp

a d l Curren asses Non-curren asses toa asses

2009 rM’000

2008 rM’000

986,571 444,267

104,235 —

1,430,838

104,235

Curren iabiiies Non-curren iabiiies

(770,439) (97,481)

(75) -

toa iabiiies

(867,920)

(75)

r Revenue Ne profi for he financia year Share of resus

122


2,980,612

—

121,486

—

2,661

—

9.

investMent in JointlY controlleD entitY Gp 2009 rM’000

2008 rM’000

Unquoed shares, a cos: - Ordinary shares - Redeeabe converibe preference shares (“RCPS”)

10,000 5,000

10,000 —

Share of pos acquisiion reserves

15,000 (2,777)

10,000 3,102

12,223

13,102

(a)

During he financia year, he Group enered ino an agreeen wih CB Indusria Produc Hoding Berhad (“CBIP”) o equay subscribe for 20,000,000 RCPS of Rm1 each a an i ssue price of Rm1 each in is joiny conroed eniy, Pride Pa Oi mi Sdn Bhd (“PPOm”). As a he baance shee dae, PPOm had issued 10,000,000 RCPS of Rm1 each which were equay subscribed by he Group and CBIP.

(b)

Deais of he joiny conroed eniy are as foows:

nm f mpy

Pride Pa Oi mi Sdn Bhd

cy f p

maaysia

 p 2009

eff  (%) 2009 2008 50

—

Pp 

Invesen hoding

123


9.

investMent in JointlY controlleD entitY (cont’D) (c)

the Group’s aggregae share of he asses, iabiiies and incoe and expenses of he joiny conroed eniy are as foows:

Gp

a d l Non-curren asses Curren asses

Non-curren iabiiies Curren iabiiies

r Incoe Expenses (incuding finance coss and ax expense) Share of resus

10.

2009 rM’000

2008 rM’000

7,093

7,376

49,060

49,592

56,153

56,968

11,430 32,500

3,866 40,000

43,930

43,866

9,827

9,075

(15,705)

(5,973)

(5,879)

3,102

other investMents Gp

(a)

2009 rM’000

2008 rM’000

cmpy 2009 2008 rM’000 rM’000

a  Quoed oan socks: In maaysia Quoed shares: In maaysia Ouside maaysia

—

—

159,990

159,990

2,321 31,749

5,406 31,749

— 31,749

— 31,749

Unquoed shares in maaysia Gof ebership

34,070 500 29

37,155 496 —

191,739 ——

191,739 — —

34,599 (30,124)

37,651 (32,697)

191,739 (28,250)

191,739 (28,250)

4,475

4,954

163,489

163,489

Accuuaed ipairen osses

124


10.

other investMents (cont’D) Gp

(b)

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

—

—

254,384

254,384

689 3,467

1,199 9,195

— 3,467

— 9,195

a mk  Quoed oan socks: In maaysia Quoed shares: In maaysia Ouside maaysia

the oveens of oher invesens of he Group and of he Copany during he financia year were as foows:

Gp 2009 rM’000

2008 rM’000

4,954 —

5,926 9

Carrying aoun A 1 January Addiions Acquisiion of subsidiary copany – Noe 7(d) (iii) mauriy of invesen in maaysian Governen Securiies Cash disribuion Disposa Reversa/(Ipairen) oss recognised (ne)

40 — — (700) 181 4,475

11.

cmpy 2009 2008 rM’000 rM’000

163,489 —

163,489 —

— — — — —

— — — — —

163,489

163,489

— (400) (63) (37) (481) 4,954

intanGible assets Gp 2009 rM’000

2008 rM’000

A 1 January Arising fro acquisiion of subsidiary copanies – Noe 7(d) (i), (iii)

91,140

87,281

2,282

3,859

A 31 Deceber

93,422

91,140

Anaysed as: Goodwi tradearks

93,282 140

91,140 —

93,422

91,140

 p 2009

125


11.

intanGible assets (cont’D) Key assupions used in vaue-in-use cacuaions of goodwi: (a)

Panaion subsidiaries the recoverabe aoun of a Cash Generaing Uni (“CGU”) is deerined based on vaue-in-use cacuaions using cash fow projecions based on financia projecions prepared by he manageen covering up o 25 years which represens he fu ife cyce period of he oi pas. the key assupions on which he manageen has based is cash fow projecions o underake ipairen esing of goodwi are: (i)

Discoun rae of 5.00% represening he pre-ax cos of deb of he Group as a 31 Deceber 2009.

(ii)

Fresh frui bunches yied ranging fro 8 o 28 mt/hecare obained fro he maaysian Pa Oi Board pubished average yied appicabe o he age of he respecive esaes and aso based on he manageen’s bes esiaes on he esae’s perforance afer aking ino accoun exising achieveens.

(iii)

Crude pa oi prices ranging fro Rm2,000 o Rm2,500 per eric onne and pa kerne price ranging fro Rm1,100 o Rm1,375 per eric onne.

(iv)

Oi exracion rae ranging fro 20.0% o 21.5% and kerne exracion rae ranging fro 4.5% o 5.5% based on he manageen’s bes esiaes afer aking ino accoun he age of he respecive esaes and exising achieveens.

(v)

Average increase in panaion ainenance expenses of 1% o 3% per hecare.

(vi)

Esiaed capia expendiure as per budge aking ino consideraion of fuure schee of new paning and repaning.

the manageen beieves ha here is no reasonaby possibe change in he key assupions on which he manageen has based is deerinaion of he CGU’s recoverabe aoun which woud cause he CGU’s carrying aoun o aeriay exceed is recoverabe aoun. (b)

manufacuring subsidiaries the key assupions on which he manageen has based is cash fow projecions o underake ipairen es of goodwi are: Average budgeed gross argin Average growh rae Pre-ax discoun rae appied o cash fow projecions

10% 7% 5%

the manageen has deerined he growh rae based on pas perforance and is expecaions of arke deveopen. the average growh rae is consisen wih he rends and expecaion of he Group. the discoun rae used is he Group’s overa weighed pre-ax average cos of capia for ha indusry. If he esiaed projeced gross argin has been 20% ower han anageen esiae or if he esiaed pre-ax discoun rae had been 20% higher han anageen esiae, he recoverabe aoun of he CGU wi si be higher han he CGU’s ne asses incuding he goodwi and herefore, here woud si be no ipair en on goodwi.

126


11.

intanGible assets (cont’D) (c)

Facors conribuing o he recogniion of goodwi are as foows: (i) locaion of he CGUs which are nearby o one anoher is expeced o provide greaer synergisic benefis o he Group, in ers of: sronger bargaining power hrough buk purchase econoies of scaes fro inerna chain of suppy and sharing of faciiies; and (ii)

(d)

12.

Sharing of coon anageen experise and knowedge.

tradearks are obained hrough business cobinaion of which, have been assessed as having indefinie usefu ife. the bases for annua ipairen of he Group’s radearks are as foows: (i) Aocaion of radearks tradearks are aocaed o he CGU in he disribuion business segen. (ii)

Key assupion used in vaue-in-use cacuaion the recoverabe aoun is deerined based on vaue-in-use cacuaions using cash fow projecions exrapoaed based on a discoun rae of 5%.

(iii)

Sensiiviy o change in assupion the anageen is of he opinion ha here is no reasonabe possibe change in any key assupions enioned in (i) and (ii) woud cause he carrying vaue of he CGU o aeriay exceed heir recoverabe aouns.

DeFerreD taxation Gp

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

Ne deferred ax iabiiies: A 1 January Currency ransaion differences Recognised in incoe saeens Effec on reducion in ax rae (Under)/Over provision in prior years Acquisiion of subsidiary copanies [Noe 7(d) (e)]

218,543 — 10,326 — (2,045) (516)

193,176 66 32,207 (13,478) 1,193 5,379

1,568 — 2,281 — 163 —

3,983 — (2,438) 23 — —

A 31 Deceber

226,308

218,543

4,012

1,568

 p 2009

127


12.

DeFerreD DeFerre D taxa taxation tion (cont’’D (cont’’D)) Presened afer appropriae offseing as foows:

Gp

Deferred ax iabiiies Deferred ax asses

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

304,013 (77,705)

231,198 (12,655)

4,126 (114)

2,176 (608)

226,308

218,543

4,012

1,568

the coponens and oveens of deferred ax iabiiies and asses of he Group and of he Copany during he financia year prior o offseing are as foows: Deferred ax iabiiies of he Group:

ad p w rM’000 A 1 January 2009 Acquisiion of subsidiary copanies Over provision in prior year Recognised in incoe saeen

F  djm f ppy rM’000

o rM’000

t rM’000

235,744 38,629 (3,217) 19,344

156,811 24,717 (133) (5,051)

— (433) (5)

392,555 62,913 (3,350) 14,288

290,500

176,344

(438)

466,406

Offseing

(162,393)

A 31 Deceber 2009

A 1 January 2008 Currency ransaion differences (Over)/Under provision in prior year Recognised in incoe saeen Disposa of subsidiary copanies

304,013

237,939 55 (8,123) — 5,873

153,274 11 9,572 5,379 (11,425)

— — — — —

391,213 66 1,449 5,379 (5,552)

235,744

156,811

—

392,555

Offseing

(161,357)


128

231,198


12.

DeFerreD taxa taxation tion (cont’’ (cont’’D) D) Deferred ax asses of he Group:

ud   rM’000 A 1 January 2009 Acquisiion of subsidiary copanies (Over)/Under provision in prior year Recognised in incoe saeen

ud p d g w rM’000

o rM’000

t rM’000

54,350 (2,990) (205) 8,163

118,029 884 (1,533) 5,855

1,633 54,382 1 1,529

174,012 52,276 (1,737) 15,547

59,318

123,235

57,545

240,098

Offseing

(162,393)


77,705

A 1 January 2008 (Over)/Under provision in prior year Recognised in incoe saeen

61,100 (1,248) (5,502)

135,378 2,058 (19,407)

1,559 20 54

198,037 830 (24,855)

54,350

118,029

1,633

174,012

Offseing

(161,357)


12,655

Deferred ax iabiiies of he Copany:

ad p w rM’000 A 1 January 2009 Recognised in incoe saeen A 31 Deceber 2009

A 1 January 2008 Recognised in incoe saeen A 31 Deceber 2008

 p 2009

Ddd  rM’000

t rM’000

31 (30)

2,145 1,980

2,176 1,950

1

4,125

4,126

62 (31)

4,455 (2,310)

4,517 (2,341)

31

2,145

2,176

1 29


12.

DeFerreD DeFerre D taxa taxation tion (cont’’D (cont’’D)) Deferred ax asses of he Copany:

ud p w rM’000 A 1 January 2009 Overprovision in prior year Recognised in incoe saeen

608 (163) (331)


114

A 1 January 2008 Recognised in incoe saeen

534 74


608

Deferred ax asses have no been recognised in respec of he foowing ies:

Gp

Unused ax osses Unuiised capia and agricuure aowances

2009 rM’000

2008 rM’000

18,314 1,385

11,538 225

19,699

11,763

the unused ax osses and unuiised capia and agricuure aowances are avaiabe indefiniey for offse agains fuure axabe profis of he subsidiary copanies in which hose ies arose. Deferred ax asses have no been recognised in respec of hese ies as hey ay no be abe o be offse agains axabe profis of oher subsidiary copanies in he Group and hey have arisen in subsidiary copanies ha have a recen hisory of business osses. the recogniion of he deferred ax asses is dependen on fuure axabe profis in excess of profis arising fro he reversa of exising axabe eporary differences. the evidence used o suppor his recogniion is based on he manageen’s budge and reevan business pans, which shows ha i is probabe ha he deferred ax asses woud be recognised in fuure years.

130


13.

inventories Gp

a  Raw sugar Refined sugar transhipen sock Oi pa producs Consuabes Cae Nurseries Paddy and rice Raw aeria Finished goods

A ne reaisabe vaue Refined sugar Oi pa producs Cae

2009 rM’000

2008 rM’000

320,244 38,939 1,830 33,203 36,089 3,027 15,541 509,769 5,541 30,394

170,144 24,738 223 6,914 38,596 3,058 20,484 — — —

994,577

264,157

— — 694

40,961 29,258 546

694

70,765

995,271

334,922

the invenories above are ne of invenories wrien down o ne reaisabe vaue and invenories wrien off aouning o Rm773,000 and Rm3,499,000 (2008: Rm9,112,000 and Ni) respecivey. the Group anages he Governen Rice Sockpie of 230,000 erics onnes. the sockpie rice hed on behaf of he Governen is excuded fro he invenories of he Group.

 p 2009

1 31


14.

traDe receivables Gp

trade receivabes less: Aowance for doubfu debs

2009 rM’000

2008 rM’000

614,961 (54,817)

323,191 (402)

560,144

322,789

Aowance for doubfu debs A 1 January Recognised in he incoe saeen Acquisiion of subsidiary copany Bad debs wrien off

402 244 54,573 (402)

A 31 Deceber

54,817

1,896 — — (1,494) 402

the Group’s nora rade credi ers range fro 7 o 90 days (2008: 7 o 90 days). Oher credi ers are assessed and approved on a case-by-case basis. Incuded in he above rade receivabes are aouns owing by reaed paries as foow:

Gp

Bukhary Sdn Bhd Binuu Edibe Ois Sdn Bhd lahad Dau Edibe Ois Sdn Bhd Soar Green Sdn Bhd

2009 rM’000

2008 rM’000

118,082 19,665 7,501 873

170,207 10,449 5,535 —

146,121

186,191

the reaionship wih he above paries is discosed in Noe 40. In addiion o he above, incuded i n he Group rade receivabes is an aggregae aoun of Rm1,565,000 (2008: Ni) owing by Recen Gian Sdn Bhd (“RGSB”), Benua Hauage Sdn Bhd (“BHSB”), Fragsar Corporaion Sdn Bhd (“FCSB”), Fira Rena Sdn Bhd (“FRSB”), Kien Fa Rice mi Sdn Bhd (“KFRmSB”) and Ban Seng Heng Rice mi Sdn Bhd (“BSH”), copanies in which cerain Direcors of YHl Hoding Sdn Bhd, a subsidiary copany of Padiberas Nasiona Berhad (“BERNAS”), are reaed by virue of heir faiy reaionship wih he direcors of RGSB, BHSB and BSH. the Group has no significan credi risk ha ay arise fro exposure o a singe receivabe or o groups of receivabes excep for he above aouns owing by reaed paries.

132


15.

other receivables Gp

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

Oher receivabes Dividend receivabes Prepayens Deposis Ineres receivabes Advance o farers Gran receivabes fro governen

175,810 — 2,956 14,648 290 40,562 340,442

61,732 — 6,622 1,071 7 — —

49 12,375 4,285 57 — — —

46 6,105 4,313 68 — — —

Aowance for doubfu debs

574,708 (5,628)

69,432 (24)

16,766 —

10,532 —

569,080

69,408

16,766

10,532

Aowance for doubfu debs A 1 January Acquisiion of subsidiary copany Bad debs wrien off

24 5,604 —

55 — (31)

— — —

— — —

A 31 Deceber

5,628

24

—

—

Incuded in oher receivabes of he Group is baance of consideraion receivabe for surrender of ease aouning o Rm24,950,000 (2008: Rm58,900,000) which is saed afer discouning he gross aoun of Rm88,350,000 (2008: Rm88,350,000) coecibe by 3 equa annua insaens using he rae of 3.7% (2008: 3.7%). the oa fair vaue gain on financia asses hed a fair vaue recognised in he Group’s incoe saeens in he previous financia year was Rm1,050,000. there was no such aoun recognised in he curren financia year. Incuded in he Group’s oher receivabes are baances owing by Soar Green Sdn Bhd (“SGSB”) and Johor Por Berhad (“JPB”) aouning o Rm1,320,000 and Rm20,725,000 (2008: 7,000 and Ni) respecivey. the aoun owing by SGSB is unsecured, ineres-free and payabe on deand in cash and cash equivaens, whie he aoun owing by JPB represens receivabe ease baance arising fro he erinaion of sub-ease agreeen as discosed in Noe 44(f). this baance is payabe by JPB wihin 6 onhs fro he dae of he erinaion agreeen on 2 Deceber 2009. In addiion o he above, oher receivabes of he Group incude an aoun of Rm5,108,400 (2008: Ni) being rena deposi paid o Yew Poe Hai and Yew Chor Khooi, where he forer is an aernae direcor of YHl Hoding Sdn Bhd (“YHl”), a subsidiary copany of Padiberas Nasiona Berhad, and he aer is conneced o cerain direcors of YHl by virue of his faiy reaionship. Gran receivabes fro he Governen of maaysia coprise subsidies recoverabe fro he Governen, in reaion o governen grans as discosed in Noe 29.

 p 2009

133


16.

aMount oWinG bY/to subsiDiarY coMPanies Gp

Aoun owing by subsidiary copanies less: Aowance for doubfu debs

Aoun owing o subsidiary copanies

17.

2009 rM’000

2008 rM’000

172,242 (21,219)

234,790 (21,219)

151,023

213,571

17,814

21,795

(a)

the aoun owing by subsidiary copanies represens unsecured advances which are repayabe on deand. Ineres is charged a rae of 5.0% (2008: 5.0%) per annu.

(b)

the aoun owing o subsidiary copanies represens unsecured ineres free advances which are repayabe on deand excep for an aoun of Rm2,974,000 (2008: Rm6,979,000) which is charged a rae of 1.75% (2008: 2.75%) per annu.

aMount oWinG bY/(to) associateD coMPanies Gp 2009 rM’000 Aoun owing by associaed copanies less: Aowance for doubfu debs

2008 rM’000

60,139 (25,267)

— —

34,872

—

20,292 14,580

— —

34,872

-

3,030 338

— 20,186

3,368

20,186

Aowance for doubfu debs A 1 January Acquisiion of subsidiary copany

25,267

— —

A 31 Deceber

25,267

—

Anaysed as: trade Non-rade

Aoun owing o associaed copanies trade Non-rade

the aoun owing by/o associaed copanies arising fro non-rade ransacion represens unsecured ineres free advances, and is repayabe on deand.

134


18.

assets helD For sale the asses cassified as hed for sae on he consoidaed baance shee as a 31 Deceber 2009 are as foows:

Gp 2009 rM’

2008 rM’

A 1 January transfer a carrying aoun (Noe 3): – Fro propery, pan and equipen – to propery, pan and equipen transfer a carrying aoun fro invesen in associaed copanies (Noe 8) Disposa Exchange difference

454

1,222

784 — 4,870 (452) (2)

454 (191) — (1,031)

A 31 Deceber

5,654

amd mpm  A 1 January Reversa of ipairen oss Disposa

— — —

454

418 — (418)

—

—

cyg m

5,654

454

Anaysed as: Propery, pan and equipen Invesen in associaed copanies

784 4,870

454 —

5,654

454

(a)

On 21 Noveber 2008, he Group enered ino a sae and purchase agreeen wih a hird pary o dispose of a parce of freehod and and buiding wih a carrying aoun of Rm454,000 for a cash consideraion of Rm1,100,000; of which Rm110,000 was received as deposi fo r he sae in previous financia year. the disposa was copeed during he financia year.

(b)

On 7 Deceber 2009, he Group agreed o dispose cerain pan and achinery wih a carrying aoun of Rm784,000 o a hird pary for a cash consideraion of Rm1,500,000. On 4 January 2010, he Group enered ino a sae and purchase agreeen wih he hird pary o execue he disposa, and oa payen of Rm1,261,000 was received as a he dae of his repor. the disposa is expeced o be copeed by may 2010, and he esiaed gain arising fro he disposa is approxiaey Rm716,000.

(c)

the non-curren asse ransferred fro invesen in associaed copanies reaes o he disposa of invesen in Asian Peninsua Corporaion ld which was copeed subsequen o year end as discosed in Noe 44 (d)(iii).

 p 2009

135


19.

FixeD DePosits Gp

licensed banks Oher financia insiuions

(a)

2009 rM’000

2008 rM’000

158,095 60,550

50,929 —

218,645

50,929

the fixed deposis above incude Isaic deposis aouned o Rm5,447,000 (2008: Rm5,447,000) in reaion o he Isaic Debs Securiies obained by he Group as deaied in Noe 23(b). the Isaic deposis are hed on rus for he benefi of he Isaic Securiies Invesors and herefore are no avaiabe for use by he Group. I coprises a one reurn payen for Sukuk A-Ijarah of Rm5,447,000.

20.

(b)

Incuded in fixed deposis above is Rm53,228,000 (2008: Rm547,000) pedged o icensed banks for banking faciiies graned o cerain subsidiary copanies as discosed in Noe 23.

(c)

the ineres raes and auriies of oher deposis range fro 1.02% o 3.50% (2008: 2.00% o 3.70%) per annu and 6 o 365 days (2008: 5 o 365 days) respecivey.

traDe PaYables the nora rade credi ers graned o he Group range fro 30 o 90 days (2008: 30 o 90 days).

21.

other PaYables Gp

Oher payabes Ineres payabes Accruas Deposis Dividend payabes

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

157,565 5,260 131,641 6 68

91,983 2,273 25,856 3 103

46,033 3,287 1,349 — 68

18 — 1,197 — 103

294,540

120,218

50,737

1,318

Incuded in oher payabes of he Group above are baances owing o inoriy sharehoders and Soar Green Sdn Bhd, a subsidiary copany of a joiny conroed eniy of he Group, aouning o Rm14,145,000 and Rm10,000 (2008: Rm14,145,000 and Rm20,000) respecivey. these aouns are unsecured, ineres-free and are payabe on deand in cash and cash equivaens.

136


22.

hire Purchase anD lease PaYables Gp

(a)

(b)

2009 rM’000

2008 rM’000

miniu hire purchase and ease payens Payabe wihin one year Payabe beween one and wo years Payabe beween one and five years

4,402 2,610 2,517

— — —

less: Fuure finance charges

9,529 (593)

— —

Presen vaue of hire purchase and finance ease iabiiies

8,936

—

Presen vaue of hire purchase and finance ease iabiiies Payabe wihin one year Payabe beween one and wo years Payabe beween one and five years

4,082 2,454 2,400

— — —

8,936

—

4,082 4,854

— —

8,936

—

Anaysed as: Repayabe wihin weve onhs Repayabe afer weve onhs

Ineres is charged a raes beween 2.90% and 6.90% (2008: Ni) per annu.

 p 2009

137


23.

borroWinGs Gp 2009 rM’000

2008 rM’000

cmpy 2009 2008 rM’000 rM’000

175,000 212,800

138,000 159,000

— 132,800

— 125,000

387,800

297,000

132,800

125,000

143,266 —

69,887 65,000

51,250 —

65,000 —

143,266

134,887

51,250

65,000

531,066

431,887

184,050

190,000

1,006,001

170,245

—

—

3,959

320

—

320

25,000

—

—

—

50,000

100,000

—

—

1,616,026

702,452

184,050

190,320

ter oans (secured)

860,983

322,912

461,247

—

Isaic debs securiies: – Sukuk A-Ijarah (secured)

185,000

210,000

—

—

1,045,983

532,912

461,247

—

2,662,009

1,235,364

645,297

190,320

s tm bwg: Revoving credis _ secured – unsecured

ter oans – secured – unsecured

Bi payabes (unsecured) Bank overdraf (unsecured) Isaic debs securiies: – Sukuk A-Ijarah (secured) Isaic debs securiies: – murabahah Coercia Papers/mediu ter Noes (“murabahah CP/mtN”) (secured )

lg tm bwg:

138


23.

borroWinGs (cont’D) Gp 2009 rM’000

2008 rM’000

cmpy 2009 2008 rM’000 rM’000

387,800 1,004,249 1,006,001 3,959 260,000

297,000 457,799 170,245 320 310,000

132,800 512,497 — — —

125,000 65,000 — 320 —

2,662,009

1,235,364

645,297

190,320

t bwg Revoving credis ter oans Bi payabes Bank overdraf Isaic debs securiies

(a)

During he financia year, he Copany obained er oan faciiies up o Rm1.0 biion (“he tl Faciiy”) o finance he acquisiion of Padiberas Nasiona Berhad (“BERNAS”) as discosed in Noe 7(d)(iii) and Noe 44(a)(i). the Faciiy is divided ino 2 ranches as foow: (i)

tl Faciiy 1: Rm544 iion o finance Acquisiion 1 and Acquisiion 2 as discosed in Noe 44(a)(i)(1) of 53.76% equiy ineres in BERNAS; and

(ii)

tl Faciiy 2: Rm456 iion o par finance he Copany’s acquisiion of he reaining 46.24% equiy ineres in BERNAS by way of mandaory Genera Offer as discosed in Noe 44(a)(i)(2).

the tl Faciiy is secured by way of: (i)

meorandu of Deposi of up o four hundred and seveny iion (470,000,000) issued and fuy paid ordinary shares of Rm1.00 each in BERNAS;

(ii)

meorandu of Deposi of up o hree hundred and sixy nine iion (369,000,000) issued and fuy paid ordinary shares of Rm1.00 each in tradewinds Panaion Berhad (“tPB”);

(iii)

meorandu of up o one hundred and fify iion (150,000,000) Irredeeabe Converibe Unsecured loan Sock in tPB;

(iv)

meorandu of Deposi over he enire paid-up capia in Cenra Sugar Refineries Sdn Bhd (“CSR”) of hiry hree iion (33,000,000) ordinary shares of Rm1.00 each; and

(v)

Firs ega charge over he revenue and sinking fund accouns.

In addiion, he Copany sha observe he foowing securiy covenans in respec of he Faciiy: (i)

the aggregae vaue of he securiies pedged sha no be ess han 2 ies (“iniu hreshod”) of he oan ousanding a a ies; and

(ii)

the vaue of CSR shares sha be based on he CSR’s ne asses, which sha no be ower han Rm7.50 per share a a ies.

In he even he securiy vaue fas beow he iniu hreshod, he Copany sha pedge addiiona securiy o ainain he iniu hreshod wihin five working days, faiing which, an addiiona ineres charge of one percen (1%) per annu sha be iposed by he ender above he ineres rae.

 p 2009

139


23.

borroWinGs (cont’D) (b)

In he previous financia year, he Group had obained he approva of he Securiies Coission for he issuance of he Isaic Deb Securiies via tradewinds Panaion Capia Sdn. Bhd. (“tPCSB”), a specia purpose copany se up o faciiae he issuance of he Isaic Deb Securiies. the Isaic Deb Securiies coprise he foowing: (i)

Rm210 iion Sukuk A-Ijarah; and

(ii)

Rm190 iion murabahah Coercia Papers/mediu ter Noes Prograe (“murabahah CP/mtN”).

the Isaic Deb Securiies are secured by he firs and second ega charges over he freehod and, easehod and, panaions and pa oi is owned by cerain subsidiaries. the Isaic Deb Securiies are repayabe by insaens of varying aouns over he periods as discosed in Noe 23(f). (c)

Secured revoving credis are secured by fixed charges over cerain ong er easehod and of cerain subsidiary copanies.

(d)

Oher secured er oans are secured by way of:

(e)

(i)

he firs and second ega charges over he easehod and, panaions and pa oi i owned by cerain subsidiary copanies of he Copany; and

(ii)

Fixed deposis paced wih icensed bank as discosed in Noe 19.

the range of ineres raes on borrowings during he financia year is as foows:

Gp

ter oans – fixed rae – foaing rae Revoving credis Bi payabes Isaic debs securiies: – Sukuk A-Ijarah – murabahah Coercia Papers Bank overdrafs

140

cmpy 2009 2008 % p. % p.

2009 % p.

2008 % p.

5.20 - 6.50 3.21 – 5.11 2.92 - 3.97 2.56 - 3.57

5.00 - 6.50 4.48 - 5.90 4.30 - 5.02 3.75 - 4.13

— 5.11 2.96 - 3.66 —

— 4.60 - 5.90 4.30 - 4.70 —

4.85 - 5.70 5.50 5.00 - 8.60

4.85 - 5.70 4.40 8.50

— — —

— — 8.50


23.

borroWinGs (cont’D) (f)

Conracua ers of borrowings are as foows:

Gp 2009 ud – Revoving credis – Bi payabes – Bank overdraf sd - ter oans - ter oans - Isaic debs securiies - Sukuk A-Ijarah - murabahah Coercia Papers – Revoving credis

2008 ud – Revoving credis – Bi payabes – Bank overdraf sd – ter oans – ter oans – Isaic debs securiies – Revoving credis

> 5 y rM’000

t yg m rM’000

— — —

— — —

212,800 1,006,001 3,959

133,217 39,462

108,312 24,412

512,030 43,550

860,113 144,136

25,000

35,000

30,000

120,000

210,000

50,000 175,000

— —

— —

— —

50,000 175,000

1,616,026

207,679

162,724

675,580

2,662,009

Foaing rae Foaing rae Foaing rae

159,000 170,245 320

— — —

— — —

— — —

159,000 170,245 320

Foaing rae Fixed rae

93,375 41,512

46,500 45,387

55,875 175,150

— —

195,750 262,049

Fixed rae Foaing rae

100,000 138,000

25,000 —

95,000 —

90,000 —

310,000 138,000

702,452

116,887

326,025

90,000

1,235,364

My Pf 1 – 2 y 2 – 5 y rM’000 rM’000

i

< 1 y rM’000

Foaing rae Foaing rae Foaing rae

212,800 1,006,001 3,959

— — —

Foaing rae Fixed rae

106,554 36,712

Fixed rae

Foaing rae Foaing rae

 p 2009

141


23.

borroWinGs (cont’D) (f)

24.

Conracua ers of borrowings are as foows: (con’d)

> 5 y rM’000

t yg m rM’000

—

—

132,800

51,250

51,250

358,747

512,497

184,050

51,250

51,250

358,747

645,297

My Pf 1 – 2 y 2 – 5 y rM’000 rM’000

i

< 1 y rM’000

cmpy 2009 ud – Revoving credis

Foaing rae

132,800

—

sd – ter oan

Foaing rae

51,250

2008 ud – Revoving credis – Bank overdraf

Foaing rae Foaing rae

125,000 320

— —

— —

— —

125,000 320

sd – ter oans

Foaing rae

65,000

—

—

—

65,000

190,320

—

—

—

190,320

retireMent beneFit obliGations A subsidiary copany, Cenra Sugars Refinery Sdn Bhd, operaes a funded, defined benefi Reireen Benefi Schee (“he Funded Schee”) for is eigibe epoyees. Conribuions o he Funded Schee are o be ade o a separaey adinisered fund. Under he Funded Schee, eigibe epoyees are enied o reireen benefis of 7.5% of cuuaive saary on aainen of he reireen age of 55. the defined benefi fund is acuariay vaued no ess han once in every 3 years. the aes vauaion by an independen professiona acuary was carried ou as a 31 Deceber 2009. Cerain subsidiary copanies provide an unfunded, defined benefi Reireen Benefi Schee (“he Unfunded Schee”) for is eigibe epoyees. Under he Unfunded Schee, fu provision has been ade for reireen benefis payabe o a eigibe epoyees who have copeed heir quaifying period of service, based on heir as drawn saaries as se ou in he poicies. Shoud an epoyee eave afer copeing he quaifying period of service bu before aaining he reireen age, he provision ade for he epoyee is wrien back.

142


24.

retireMent beneFit obliGations (cont’D) (a)

the aouns recognised in he baance shee are deerined as foows:

Gp 2009 rM’000

(b)

2008 rM’000

Presen vaue of funded defined benefi obigaions Presen vaue of unfunded defined benefi obigaions Fair vaue of pan asses

4,767 74,688 (5,385)

4,444 7,536 (5,548)

Unrecognised acuaria oss Unrecognised ne ransiion asse

74,070 (1,702) 972

6,432 (1,605) 1,344

Ne iabiiy

73,340

6,171

Anaysed as: Curren iabiiies Non-curren iabiiies

4,229 69,111

458 5,713

73,340

6,171

the aouns recognised in he incoe saeen are as foows:

Gp 2009 rM’000

2008 rM’000

Curren service cos Ineres cos Expeced reurn on pan asses Aorisaion of acuaria oss Aorisaion of ransiiona iabiiy Ne ransiion asse recognised during he financia year Acuaria gain/oss

1,536 971 (231) 17 — (372) —

818 622 (382) 8 70 (187) (31)

toa (Incuded in saff coss)

1,921

918

 p 2009

143


24.

retireMent beneFit obliGations (cont’D) (c)

moveens in he ne iabiiy during he financia year are as foows:

Gp 2009 rM’000

(d)

2008 rM’000

A 1 January Acquisiion of subsidiary copanies (Noe 7) Recognised in he incoe saeen Conribuions paid

6,171 66,156 1,921 (908)

5,691 — 918 (438)

A 31 Deceber

73,340

6,171

Changes in he presen vaue of funded defined benefi obigaion during he financia year are as foows:

Gp 2009 rM’000

(e)

2008 rM’000

A 1 January Service cos Ineres cos Benefis paid Acuaria oss/(gain) due o acua experience

4,444 323 281 (335) 54

4,294 359 240 (262) (187)

A 31 Deceber

4,767

4,444

Changes in he presen vaue of unfunded defined benefi obigaion during he financia year are as foows:

Gp 2009 rM’000

2008 rM’000

A 1 January Acquisiion of subsidiary copanies (Noe 7) Service cos Ineres cos Benefis paid

7,536 66,156 1,214 690 (908)

6,660 — 932 382 (438)

A 31 Deceber

74,688

7,536

144


24.

retireMent beneFit obliGations (cont’D) (f)

Changes in he fair vaue of pan asses during he financia year are as foows:

Gp 2009 rM’000

2008 rM’000

A 1 January Expeced reurn on pan asses Conribuions paid Acuaria oss on pan asse

5,548 231 (335) (59)

6,983 382 (262) (1,555)

A 31 Deceber

5,385

5,548

Principa acuaria assupions used:

Gp

Discoun rae Expeced reurn on pan asses Price infaion Expeced rae of saary increase

25.

2009 %

2008 %

6.0 - 6.8 4.5 3.5 5.0 - 7.0

5.8 - 6.6 5.6 3.5 5.0 - 6.0

share caPital Gp/cmpy 2009 nm f  ’000 Ordinary shares of Rm1 each: Auhorised

Issued and fuy paid

2008 am rM’000

nm f  ’000

am rM’000

500,000

500,000

500,000

500,000

296,471

296,471

296,471

296,471

 p 2009

145


26.

reserves Gp

Non-disribuabe: Share preiu Capia reserve Exchange ransaion reserve Disribuabe: Reained profis Capia reserve

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

84,171 3,684 10,923

84,171 3,684 26,967

84,171 — —

84,171 — —

1,075,537 2,077

960,154 2,077

685,540 497

694,540 497

1,176,392

1,077,053

770,208

779,208

the oveens in each caegory of reserve are refeced in he saeens of changes in equiy. (a)

Exchange ransaion reserve the exchange ransaion reserve is used o record foreign currency exchange differences arising fro he ransaion of he financia saeens of foreign operaions whose funciona currencies are differen fro he Group’s presenaion currency. I is aso used o record he exchange differences arising fro oneary ies which for par of he Group’s ne invesen in foreign operaions, where he oneary ie is denoinaed in eiher he funciona currency of he reporing eniy or he foreign operaion.

(b)

Capia reserve (i) Disribuabe capia reserve coprises surpuses arising fro disposas of quoed invesens and governen acquisiions of and in previous years. (ii)

(c)

Non-disribuabe capia reserve represens a ransfer fro revenue reserve arising fro he issuance of bonus issue by cerain subsidiary copanies.

Reained profis Under he singe-ier syse which cae ino effec fro year of assessen 2008, copanies are no required o have ax credis under Secion 108 of he Incoe tax Ac, 1967 for dividend payen purposes. Dividends under his syse are ax exep in he hands of sharehoder. Copanies wih Secion 108 credis as a 31 Deceber 2007 ay coninue o pay franked dividends uni he Secion 108 is exhaused or up o he axiu aowed ie frae uni 31 Deceber 2013 whichever is earier uness hey op o disregard he Secion 108 credis o pay singe-ier dividend under he specia ransiiona provisions of he Finance Ac 2008. Subjec o agreeen by he Inand Revenue Board, he Copany has sufficien ax credi under Secion 108 of he Incoe tax Ac, 1967 avaiabe o frank dividend payens of approxiaey Rm195,074,000 (2008: Rm217,310,000) ou of is reained profis as a 31 Deceber 2009. the reaining profis of Rm490,466,000 (2008: Rm477,230,000) can be disribued as exep dividends under he singe-ier ax syse. In addiion, he Copany has exep incoe aouning o approxiaey Rm14,358,000 (2008: Rm14,358,000) avaiabe for disribuion as ax exep dividends o sharehoders as a 31 Deceber 2009. this ax exep incoe is subjec o agreeen by he Inand Revenue Board.

146


27.

revenue Revenue of he Copany incudes dividend incoe, ineres incoe and anageen fees. Revenue of he Group incudes saes of pa producs, saes of refined sugar and oasses, saes of rice, ineres incoe and anageen fees.

Gp

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

1,310,336 758,726 207

862,178 905,062 167

— — 1,200

— — 600

— — 129

— — 159

5,838 4,800 129

5,743 4,800 159

—

—

82,349

55,149

2,069,398

1,767,566

94,316

66,451

ay f r Saes of goods – manufacuring and rading – Panaion manageen fee Ineres incoe fro – subsidiary copanies – quoed oan socks – ohers Dividend fro shares hed in – subsidiary copanies

28.

other oPeratinG incoMe Oher operaing incoe incudes:

Gp

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

79 266 648 86 — 1,494

— 221 — 183 1,050 1,648

— 92 — — — —

— 36 — — — —

1,377 1,961 883 7 332 181

2,531 7,447 — 33 — —

— — — — — —

— — — — — —

14,087 16,351 —

— — 32

— — —

— — —

Gain on disposa of : – oher invesens – propery, pan and equipen – asses hed for sae – prepaid ease payens Gain on financia asses hed a fair vaue (Noe 15) Rena incoe Ineres incoe fro: – fixed deposis wih icensed banks – a reaed pary (Noe 40) – ohers Dividend incoe fro quoed shares Unreaised oss on foreign exchange Reversa of ipairen oss on oher invesen (ne) Excess of fair vaue of ne asses acquired over purchase consideraion Reaisaion upon iquidaion of an associaed copany Bad debs recovered

 p 2009

147


29.

raW Materials anD consuMables useD Raw aerias and consuabes used is arrived a afer crediing:

Gp

Governen grans

2009 rM’000

2008 rM’000

287,082

—

the above grans represen oa subsidies received during he curren financia year o subsidise he price of refined sugar and rice.

30.

staFF costs Saff coss incude:

Gp

Pension cos – defined conribuion pans – epoyees Pension cos – defined benefi pan

148

2009 rM’000

2008 rM’000

9,349 1,921

8,538 918


cmpy 2009 2008 rM’000 rM’000

858 —

694 —

31.

other oPeratinG exPenses Oher operaing expenses incude:

Gp 2008 rM’000

634 9 49 244 107

554 8 76 — 3

60 — 27 — —

60 — 10 — —

155 1,328 25

181 937 57

85 542 —

85 529 24

20,000

—

10,000

—

494 967 3 — — 2 2,853 3,003 615 154

265 271 9 481 43 — — 3,017 20 3,678

— — — — — — — — — —

— — — — — — — — — —

4,893 320 49 2,813

914 506 36 —

262 — — —

118 — — —

Audiors’ reuneraion: Sauory audi - curren year - under provision in prior years Oher services Aowance for doubfu debs Bad debs wrien off Copany direcors - fees - oher eouens - benefis-in-kind Chariabe conribuions for Abukhary Inernaiona Universiy Oher direcors - fees - oher eouens - benefis-in-kind Ipairen oss on oher invesens - Noe 10 loss on disposa of prepaid ease payens loss on disposa of propery, pan and equipen loss on disposa of associaed copanies lease rena of warehouse Propery, pan and equipen wrien off - Noe 3 Panaion deveopen expendiure wrien off - Noe 5 Rena expenses - preises - oher equipen and vehices Reaised oss on foreign exchange Reaised oss on coodiy swap

32.

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

Finance costs Gp

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

54,989 44 —

48,489 — —

9,766 — 48

8,236 — 13

55,033

48,489

9,814

8,249

Ineres expense on: - borrowings - hire purchase - subsidiary copanies

 p 2009

149


33.

taxation Gp

tax expense for he financia year: – maaysian incoe ax

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

67,812

55,761

15,200

14,339

10,326 —

32,207 (13,478)

2,281 —

(2,438) 23

10,326

18,729

2,281

(2,415)

(1,962) (2,045)

883 1,193

1,321 163

(389) —

(4,007)

2,076

1,484

(389)

74,131

76,566

18,965

Deferred ax (Noe 12): – Reaing o originaion and reversa of eporary differences – Reducion in incoe ax rae

(Over)/Under provision in prior years: – maaysian incoe ax – Deferred ax (Noe 12)

toa incoe ax expense

11,535

Doesic incoe ax is cacuaed a he maaysian sauory ax rae of 25% (2008: 26%) of he esiaed assessabe profi for he financia year. A reconciiaion of incoe ax expense appicabe o profi before axaion a he sauory incoe ax rae o incoe ax expense a he effecive incoe ax rae of he Group and of he Copany is as foows:

Gp

Profi before axaion

2009 rM’000

2008 rM’000

245,870

298,808

cmpy 2009 2008 rM’000 rM’000 32,200

42,902

taxaion a sauory ax rae of 25% (2008: 26%) Incoe no subjec o ax Expenses no deducibe for ax purposes Uiisaion of reinvesen aowance Uiisaion of previousy unrecognised ax osses and capia aowances Deferred ax asses no recognised (Over)/Under provision of axaion in prior years (Over)/ Under provision of deferred axaion in prior years Effec of differen ax raes in oher counries Reducion in sauory ax rae on firs Rm500,000 of chargeabe incoe for cerain subsidiary copanies Reducion in ax rae used in deferred ax Share of resus in join venure Curren year oss no eigibe o be carried forward

61,467 (8,183) 19,964 (498)

77,690 (1,516) 13,871 (3,270)

8,050 (23) 9,454 —

— 3,408 (1,962) (2,045) (610)

(1,635) 3,415 883 1,193 (554)

— — 1,321 163 —

— — 1,470 1,120

(210) (13,478) (807) 984

— — — —

— 23 — —

tax expense for he financia year

74,131

76,566

18,965

11,535

150


11,155 (10) 756 — — — (389) — —

34.

earninGs Per share attributable to equitY holDers oF the coMPanY (a)

the earnings per share is cacuaed afer aking ino consideraion of he 100 iion new ordinary shares which wi be andaoriy convered on he auriy dae arising fro tradewinds Panaion Berhad’s 160,000,000 ICUlS (“tPB ICUlS”) of Rm1.00 each issued on 28 February 2006. Ne profi for he financia year aribuabe o equiy hoders of he Copany used in copuing he earnings per share has been adjused as foows:

Gp 2009 rM’000

2008 rM’000

Ne profi aribuabe o equiy hoders of he Copany Effec of assued conversion of tPB ICUlS

137,618 1,562

160,735 5,563

Ne profi aribuabe o equiy hoders of he Copany incuding assued conversion of tPB ICUlS

139,180

166,298

the Group’s weighed average nuber of ordinary shares in issue during he financia year is 296,470,484 (2008: 296,470,484). (b)

35.

there is no diued earnings per share as he Copany does no have any poenia diuive ordinary shares as a financia year end.

DiviDenDs Gp/cmpy 2009 2008 rM’000 rM’000 Fina dividend of 10 sen gross ess 25% incoe ax, proposed for financia year 2008 paid in financia year 2009

22,235

—

Ineri dividend of 10 sen gross ess 26% incoe ax

—

21,938

Fina dividend of 13 sen gross ess 26% incoe ax, proposed for financia year 2007 paid in financia year 2008

—

28,521

22,235

50,459

On 23 February 2010, he Copany decared an ineri dividend of 10 sen gross per share ess 25% incoe ax aouning o Rm22,235,000 in respec of he curren financia year, payabe on 21 may 2010. A he forhcoing Annua Genera meeing, a fina dividend of 5 sen gross per share ess 25% incoe ax aouning o Rm11,117,000 in respec of he financia year ended 31 Deceber 2009 wi be proposed for sharehoders’ approva.

 p 2009

151


36.

PaDDY Price subsiDY account As discosed in Noe 7(d)(iii), he Copany has, during he year, becoe he hoding copany of Padiberas Nasiona Berhad (“BERNAS”). BERNAS is vesed wih he responsibiiy o adiniser he Governen’s Paddy Price Subsidy Schee. the oveen of he paddy price subsidy accoun which represens he paddy price subsidy o be disribued o he regisered paddy farers on behaf of he Governen are as foows:

Gp 2009 rM’000 Baance a 1 January Add: Governen subsidy funds received Ineres incoe less: Payens ade during he financia year

74,341 532,000 1,030 (599,964)

Baance a 31 Deceber

7,407

2008 rM’000 — — — — —

the aouns were no incuded in he asses and iabiiies of he Group. Pursuan o he Corporaion Agreeen daed 12 January 1996, he Governen sha deposi he fund under he Paddy Price Subsidy Schee ino bank accouns wih icensed banks or financia insiuions and operaed by BERNAS for he soe purpose of disburseen of subsidies. the unuiised porion of he fund is o be paced ino fixed deposis accouns wih icensed banks or financia insiuions approved by he Governen.

37.

caPital coMMitMents Gp

Propery, pan and equipen: - Auhorised and conraced for - Auhorised bu no conraced for Panaion deveopen expendiure: - Auhorised and conraced for - Auhorised bu no conraced for Acquisiion of subsidiary copanies: - Auhorised and conraced for

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

83,495 225,749

62,399 67,207

— —

— 1,210

49,284 60,149

78,803 43,734

— —

— —

150,000

7,209

—

—

5,000

—

—

—

573,677

259,352

—

1,210

Subscripion of redeeabe converibe preference shares in a joiny conroed eniy: - Auhorised and conraced for

152


38.

continGent liabilities Gp 2009 rM’000

2008 rM’000

—

46

Corporae guaranee for credi faciiies graned o hird paries under he “Ski Indusri Peranian”

39.

cmpy 2009 2008 rM’000 rM’000

—

—

Material litiGations (a)

Padiberas Nasiona Berhad (“BERNAS”), a subsidiary of he Copany was served wih a Wri and Saeen of Cai daed 14 Ocober 2005 by Konsoriu Peborong Beras (meayu) Keanan Sdn Bhd (“KBK”) and was naed as he Firs Defendan. KBK is seeking he foowing: (i)

A decaraion ha BERNAS vioaed he ers of he Join Venure Agreeen (“JVA”) by no copying wih is duies and obigaions as a eber/parner of Forua tiur Sdn Bhd (“he Join Venure Copany”);

(ii)

A decaraion ha BERNAS’ acion in sopping he suppy of rice o he Join Venure Copany was conrary o he provision of he JVA, and was wrongfu and invaid;

(iii)

A decaraion ha BERNAS, by coission or oission, coied a fraud upon he inoriy sharehoders of he Join Venure Copany and/or abuse of po wer;

(iv)

Genera daages of Rm112 iion o be paid by BERNAS o he Join Venure Copany;

(v)

Rebae of Rm760,000;

(vi)

Ineres under Secion 11 of he Civi law Ac, 1965 and in equiy on he daages a 8% per annu fro Augus 2003 uni payen; and

(vii)

Injuncion and Coss and oher reieves as he Cours dee jus.

On 23 June 2006, BERNAS fied an appicaion o srike ou he said Saeen of Cai on he ground ha here was no vaid cause of acion. On 7 may 2006, he Senior Assisan Regisrar disissed BERNAS’ appicaion o srike ou. On 7 may 2007, BERNAS odged an appea o Judge in Chabers agains he Senior Assisan Regisrar’s decision peraining o BERNAS’ sriking ou appicaion which was fixed for decision on 20 may 2009. On 20 may 2009, he Judge in Chabers disissed BERNAS’ appea wih coss. BERNAS had upon advice by is soiciors, insruced is soiciors o fie a Noice of Appea a he Cour of Appea agains he decision of he Judge in Chabers. the Cour of Appea has ye o fix he hearing dae for he Noice of Appea fied by BERNAS.

 p 2009

153


39.

Material litiGations (cont’D) (b)

On 27 march 2006, BERNAS was served wih a seaed copy of a Suons in Chabers daed 3 march 2006 by KBK for an inerocuory injuncion, iner aia, he foowings: (i)

Resrain BERNAS fro seing, hiring and suppying rice o any hird pary or aowing any aciviies which ay copee wih he business of he Painiff; and

(ii)

Insruc BERNAS o resue seing, hiring and suppying rice o he Painiff.

KBK’s appicaion for injuncive reief and discovery which had been fixed for 22 June 2009 had been adjourned o 2 Sepeber 2009 and 26 Ocober 2009, respecivey for furher enion. However, BERNAS had given insrucion o is soiciors o se aside he said injuncion appicaion. the Cour has ye o fix he dae for KBK’s appicaion for injuncive reief and discovery. (c)

BERNAS was served wih a Wri of Suons and Saeen of Cai daed 5 may 2006 iniiaed by A Hai Bin Hazah and 291 ohers (“he Painiffs”). the civi sui is brough by he Painiffs agains BERNAS and 24 ohers (“he Defendans”) for, iner aia, he foowing cais: (i)

A decaraion ha he 2000 Vounary Separaion Schee iniiaed by BERNAS is void and of no effec.

(ii)

A decaraion ha he Defendans had, by unawfu eans, conspired and cobined ogeher o defraud or injure he Painiffs.

(iii)

Aernaivey, a decaraion ha he Defendans had aced in furherance of a wrongfu conspiracy o injure he Painiffs.

(iv)

Daages o be assessed.

(v)

Ineres and coss.

In reaion o he civi sui fied by he Painiffs agains he Defendans, BERNAS had fied Suons in Chabers pursuan o Order 12 Rue 7 and/or Order 18 Rue 19 (“he Order”) of he Rues of he High Cour 1980 (“BERNAS Appicaion”) for he foowing: (i)

tha he Wri and Saeen of Cai as agains he said Defendans be sruck ou as i discoses no reasonabe course of acions, scandaous, frivoous, vexaious and/or is an abuse of process of he Cour;

(ii)

tha he coss of he said Order o be borne by he Painiffs; and

(iii)

Such furher or oher orders as he Cour dees fi.

the Cour had graned Order In ters for he BERNAS Appicaion o srike ou he 21s Defendans wih cos payabe o BERNAS bu disissed BERNAS Appicaion o srike ou he 2nd o 12h Defendans on 3 Sepeber 2007. On 3 march 2008, he Cour disissed BERNAS Appicaion o srike ou he 2nd o 12h Defendans fro being he pary o he sui. BERNAS’ soiciors had on 17 Apri 2008, fied a Saeens of Defence for 2nd o 12h Defendans. the aer has been fixed for furher case anageen on 14 may 2010 pending he paries’ copiance wih he case anageen direcions.

154


39.

Material litiGations (cont’D) (d)

On 6 June 2006, BERNAS was served wih a seaed copy of Originaing Suons and Affidavi in Suppor (“he Painiffs Appicaion”) affired by Zainon B Ahad for and on behaf of he 690 ohers (“he Painiffs”) for he foowing cais: (i)

A decaraion ha he Painiffs as epoyees of BERNAS whose service of epoyen has been erinaed before aaining he age of 55 due o reasons oher han ha of copusory reireen, opiona reireen, deah or a disabiiy are enied o he Reireen/terinaion Benefis provided for in cause 7.3 of he ‘tera dan Syara Perkhidaan Kupuan Eksekuif dan Kupuan Bukan Eksekuif’ and in cause 5.5 of he ‘Buku Panduan Kupuan Eksekuif dan Bukan Eksekuif’.

(ii)

An order ha BERNAS pays he Reireen/terinaion benefis due o he Painiffs as foows:–

for hose Painiffs who have aained he age of reireen of 55 years as a he dae of he order, he Reireen/terinaion Benefis be paid direcy o he; and

–

for hose Painiffs who have no aained he age of reireen of 55 years as a he dae of he order, he Reireen/terinaion Benefis be paid ino heir accouns a he Epoyen Providen Fund.

(iii)

Ineres a he rae of 8% per annu fro 1 January 2004 o he dae of payens as ordered by he Cour.

(iv)

Such furher orders, direcions or reief ha he Cour dees fi and appropriae.

(v)

Coss o be paid by BERNAS o he Painiffs.

the Cour had on 13 march 2008 aowed he Painiffs’ appicaion wih cos and BERNAS had insruced is soiciors o fie Grounds of Appea o he Cour of Appea. the Cour of Appea had, on 24 Augus 2009, aowed BERNAS’ appicaion o aend he meorandu of Appea and he Noice of Appea. As of o dae, he Cour of Appea has ye o fix he hearing dae for he Noice of Appea fied by BERNAS. (e)

On 4 January 2010, BERNAS was served wih a seaed copy of Originaing Suons and Affidavi in Suppor (“he Painiffs Appicaion”) affired by Rahan Bin Saud for and on behaf of he 242 ohers (“he Painiffs”) for he foowing cais: (i)

A decaraion ha he Painiffs as epoyees of BERNAS whose service of epoyen has been erinaed before aaining he age of 55, due o reasons oher han ha of copusory reireen, opiona reireen, deah or a disabiiy are enied o he Reireen/terinaion Benefis provided for in cause 7.3 of he ‘tera dan Syara Perkhidaan Kupuan Eksekuif dan Kupuan Bukan Eksekuif’ and in cause 5.5 of he ‘Buku Panduan Kupuan Eksekuif dan Bukan Eksekuif’.

(ii)

An order ha BERNAS pays he Reireen/terinaion Benefis due o he Painiffs as foows:–

for hose Painiffs who have aained he age of reireen of 55 years as a he dae of he order, he Reireen/terinaion Benefis be paid direcy o he; and

–

for hose Painiffs who have no aained he age of reireen of 55 years as a he dae of he order, he Reireen/terinaion Benefis be paid ino heir accouns a he Epoyen Providen Fund.

 p 2009

155


39.

Material litiGations (cont’D) (e)

On 4 January 2010, BERNAS was served wih a seaed copy of Originaing Suons and Affidavi in Suppor (“he Painiffs Appicaion”) affired by Rahan Bin Saud for and on behaf of he 242 ohers (“he Painiffs”) for he foowing cais: (con’d) (iii)

Ineres a he rae of 8% per annu fro 1 January 2004 o he dae of payen as ordered by he Cour.

(iv)

Such furher orders, direcions or reief ha he Cour dees fi and appropriae.

(v)

Coss o be paid by BERNAS o he Painiffs.

BERNAS had given insrucions o is soiciors o fie repy in defence agains he Painiffs’ appicaion. the Cour has fixed 14 June 2010 as he dae for he hearing of he painiffs’ appicaion on he above enioned civi sui.

40.

siGniFicant relateD Parties transactions (a)

In addiion o he ransacions deaied esewhere in he financia saeens, he Group and he Copany had he foowing ransacions wih reaed paries during he financia year:

Gp

Dividend incoe fro: – Subsidiary copanies

Ineres incoe fro: – Subsidiary copanies – Quoed oan socks issued by subsidiary copany – Bukhary Sdn Bhd ix,x

Ineres expenses paid o: – Subsidiary copanies

manageen and agency fees fro: – Subsidiary copanies – Soar Green Sdn Bhd i

156

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

—

—

82,349

55,149

— — 1,961

— — 7,477

5,838 4,800 —

5,743 4,800 —

—

—

48

13

— 207

— 168

1,200 —

600 —


40.

siGniFicant relateD Parties transactions (cont’D) (a)

In addiion o he ransacions deaied esewhere in he financia saeens, he Group and he Copany had he foowing ransacions wih reaed paries during he financia year: (con’d)

Gp

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

92 73 97 384 124 15 28

35 — — — — — —

92 — — — — — —

35 — — — — — —

25

—

—

—

—

34

—

—

Purchase of insurance fro: – tradewinds Inernaiona Insurance Brokers Sdn Bhd vi

5,467

3,730

83

—

Provision of agency services and disribuorship of goods fro: – Bukhary Sdn Bhd ix, x

7,735

6,779

—

—

108

38

—

—

Purchase of raw aerias fro: – Agri-Sabah Feriizer Sdn Bhd ii, iv

6,660

8,377

—

—

Procureen of engineering works fro: – minsec Engineering Services Sdn Bhd ii, v

2,121

3,644

—

—

Preise/Office rena paid o: - Zean Corporaion Sdn Bhd xii - Asian Ne Sdn Bhd xvii - Souhern Edipro Packaging Sdn Bhd xix - Sin Hock Soon trading Sdn Bhd xix - Eerna Proenade Sdn Bhd xix - tSH Reay Sdn Bhd xx - Joo Seng Edar Sdn Bhd xvi

Preise rena paid o: - Yew Chye Seng, a direcor of a subsidiary copany

Rena incoe fro: - Gua Padang terap Panaions Sdn Bhd

ix

Purchase of packing aerias fro: – tego Sdn Bhd ii, iii

 p 2009

157


40.



Gp

Procureen of wase anageen services fro: – Siaas Environena Syses Sdn Bhd ii, v

Purchase of cheicas and resins fro: – Cheques trading (m) Sdn Bhd ii, v

Purchase of naura gas fro: – Gas maaysia Sdn Bhd vii

Provision of ogisics and ransporaion services fro: - JP logisics Sdn Bhd xii - SKS transpor Sdn Bhd ix, xi - Ian Cargo transporaion and Freigh Sdn Bhd xiii, xiv - Sin Hock Soon transpor Sdn Bhd xix - Xeng Heng Sdn Bhd xix - meia Bes Sdn Bhd xiii, xiv - Nagoya Agency xviii - Joo Seng Edar Sdn Bhd xvi

Sae of fresh frui bunches o: - Soar Green Sdn Bhd i

Sae of refined sugar o: – Bukhary Sdn Bhd ix, x

Purchase of sugar cane fro: – Gua Padang terap Panaions Sdn Bhd

Sae of crude pa oi and pa kerne o: – lahad Dau Edibe Ois Sdn Bhd ii, viii - Binuu Edibe Ois Sdn Bhd ii, viii

158

ix

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

412

502

—

—

55

18

—

—

31,159

27,097

—

—

6,445 3,811

6,393 3,855

— —

— —

500 384 87 365 371 48

— — — — — —

— — — — — —

— — — — — —

1,231

314

—

—

203,610

164,970

—

—

—

10,781

—

—

49,546 155,587

53,756 208,034

— —

— —


40.



Gp

cmpy 2009 2008 rM’000 rM’000

2009 rM’000

2008 rM’000

Sae of rice o: – Associaed copanies

41,700

—

—

—

Purchase of rice fro: – Associaed copanies

44,245

—

—

—

250 200

— —

— —

— —

984 337 89 200

— — — —

— — — —

— — — —

Purchase of rice fro: – Faiza markeing Sdn Bhd xiii – Jasine Rice mi (Kerpan) Sdn Bhd

Sae of rice o: – Recen Gian Sdn Bhd – JS Sasaran trading xvi – Joo Seng Enerprise xvi – Pasar mini Enerprise xiii

xv

xix

the above ransacions have been enered ino in he nora course of business and have been esabished on coercia ers ha are no aeriay differen fro hose obainabe in ransacions wih unreaed paries: (i)

Soar Green Sdn Bhd (“SGSB”) was a subsidiary of he forer uiae hoding copany, tradewinds Corporaion Berhad. tradewinds Corporaion Berhad ceased o be he uiae hoding copany wih effec fro 21 February 2008 and hereafer SGSB becae a copany in which a ajor sharehoder of he Copany has ineres uni 31 Juy 2008. SGSB subsequeny becae a subsidiary of a joiny conroed eniy of he Group wih effec fro 1 Augus 2008.

(ii)

PPB Group Berhad (“PPB”) had an indirec ineres in he Copany hrough is subsidiary copany, FFm Berhad (“FFm”) and associaed copany, Grenfe Hodings Sdn Bhd. Pursuan o Secion 6A of he Ac, PPB was deeed as a ajor sharehoder of he Copany uni 6 January 2010.

(iii)

tego Sdn Bhd is a subsidiary copany of FFm. FFm is in urn a whoy-owned subsidiary copany of PPB.

(iv)

PPB was deeed o have ineres in Agri-Sabah Feriizer Sdn Bhd hrough PPB Oi Pas Berhad.

(v)

minsec Engineering Services Sdn Bhd and Siaas Environena Syses Sdn Bhd are subsidiaries of Cheques Sdn Bhd. Cheques Sdn Bhd is a subsidiary copany of PPB.

 p 2009

159


40. siGniFicant relateD Parties transactions (cont’D) (a)

In addiion o he ransacions deaied esewhere in he financia saeens, he Group and he Copany had he foowing ransacions wih reaed paries during he financia year: (con’d) (vi)

tradewinds Inernaiona Insurance Brokers Sdn Bhd (“tIIBSB”) is a subsidiary copany of he forer uiae hoding copany, tradewinds Corporaion Berhad. tradewinds Corporaion Berhad ceased o be he uiae hoding copany wih effec fro 21 February 2008 and hereafer tIIBSB becae a copany in which a ajor sharehoder of he Copany has ineres.

(vii)

Gas maaysia Sdn Bhd is a subsidiary copany of mmC Corporaion Berhad which is 51.76% owned by Seapor terina (Johore) Sdn Bhd, a whoy owned subsidiary copany of Indra Cia Sdn Bhd whose ajor sharehoder is tan Sri Dao’ Sri Syed mokhar Shah bin Syed Nor (wih 99.99% equiy ineres). tan Sri Dao’ Sri Syed mokhar Shah bin Syed Nor is a direcor and subsania sharehoder, hoding 99.99% equiy ineres in Resu Jernih Sdn Bhd, he hoding copany of Perspecive lane (m) Sdn Bhd which in urn hods 42.97% equiy ineres in he Copany.

(viii) PGEO Group Sdn Bhd hods 100% and 45% equiy ineres in Binuu Edibe Ois Sdn Bhd and lahad Dau Edibe Ois Sdn Bhd respecivey. PGEO Group Sdn Bhd is in urn a 100% subsidiary of Wiar Inernaiona liied, a copany in which PPB has 18.4% equiy ineres. (ix)

tuan Syed Azin bin Syed Nor is he broher of tan Sri Dao’ Sri Syed mokhar Shah bin Syed Nor and a nonindependen/non-execuive direcor of he Copany. tuan Syed Azin bin Syed Nor is aso a direcor of KHSB Equiy Sdn Bhd (“KHSB Equiy”). Gua Padang terap Panaions Sdn Bhd, is a 84.11% subsidiary of Jainan Seanga Sdn Bhd. Jainan Seanga Sdn Bhd is a 93% subsidiary of Paraoun Diension (m) Sdn Bhd which in urn is a subsidiary of KHSB Equiy.

(x)

Bukhary Sdn Bhd (“BSB”) is an indirec subsidiary of KHSB Equiy. mr. Chuah Seong ta, a non-independen/nonexecuive direcor of he Copany and Encik Ahed Kai bin P m musafa Kaa, a direcor of Gua Padang terap Sdn Bhd, a subsidiary copany of he Copany, are boh direcors of BSB. Encik Ahed Kai bin P m musafa Kaa is aso a ajor sharehoder and a direcor of KHSB Equiy. the ineres incoe fro BSB coprises ae payen charges on rade debs ha are owing ore han 90 days. Ineres is charged a a rae of 6.5% (2008: 6.5%) per annu.

(xi)

SKS transpor Sdn Bhd is an indirec subsidiary of KHSB markeing Sdn Bhd (“KmSB”). KmSB is in urn a 79% subsidiary of KHSB Equiy.

(xii)

JP logisics Sdn Bhd is a whoy-owned subsidiary of Johor Por Berhad which in urn is a whoy-owned subsidiary of mmC Corporaion Berhad. tan Sri Dao’ Sri Syed mokhar Shah bin Syed Nor is deeed o be a subsania sharehoder of tronoh Consoidaed maaysia Berhad due o his direc and indirec ineres in Indra Cia Sdn Bhd, Seapor terina (Johore) Sdn Bhd and mmC Corporaion Berhad pursuan o Secion 6A of he Copanies Ac, 1965. Zean Corporaion Sdn Bhd is a whoy-owned subsidiary of Zean Hodings (m) Sdn Bhd which in urn is a whoy-owned subsidiary of tronoh Consoidaed maaysia Berhad.

160


40.


In addiion o he ransacions deaied esewhere in he financia saeens, he Group and he Copany had he foowing ransacions wih reaed paries during he financia year: (con’d) (xiii) Faiza Bawui b Syed Ahad and Najwa b Abu Bakar who are direcors of Syarika Faiza markeing Sdn Bhd, a subsidiary copany of Padiberas Nasiona Berhad, hod subsania ineres in Faiza markeing Sdn Bhd and Pasar mini Enerprise. (xiv) Ian Cargo transporaion and Freigh Sdn Bhd and meia Bes Sdn Bhd are copanies in which a son of Faiza Bawui b Syed Ahad has subsania financia ineres. (xv) mr. li Kian lai@li Kean lai who is a direcor of Jasine Food Corporaion Sdn Bhd, a subsidiary copany of Padiberas Nasiona Berhad, hods subsania financia ineres in Jasine Rice mi (Kerpan) Sdn Bhd. (xvi) mr. tee Sin Joo and mr. tee Sin Kong who are direcors of JS Jasine Sdn Bhd, a subsidiary copany of Padiberas Nasiona Berhad, hod subsania financia ineres in Joo Seng Enerprise, JS Sasaran trading, Aroa Beras Edar and Joo Seng Edar Sdn Bhd. (xvii) Asian Ne Sdn Bhd is a copany in which cerain direcors of Jasine Food Corporaion Sdn Bhd, a subsidiary copany of Padiberas Nasiona Berhad, have subsania financia ineres. (xviii) Nagoya Agency is an eniy owned by a person conneced o cerain direcors of Jasine Rice mi (tunjang) Sdn Bhd and Jasine Rice Producs Sdn Bhd, subsidiary copanies of Padiberas Nasiona Berhad. (xix) Recen Gian Sdn Bhd, Sin Hock Soon transpor Sdn Bhd, Eerna Proenade Sdn Bhd, Xeng Heng Sdn Bhd, Sin Hock Soon trading Sdn Bhd and Souhern Edipro Packaging Sdn Bhd are copanies conneced o cerain direcors of YHl Hodings Sdn Bhd, subsidiary copanies of Padiberas Nasiona Berhad, by virue of heir faiy reaionship. (xx) mr. tan Gee Hua and mr. tho lai Hock who are direcors of tong Seng Hua Sdn Bhd, a subsidiary copany of Padiberas Nasiona Berhad, hod subsania ineres in tSH Reay Sdn Bhd.

(b)

Inforaion regarding ousanding baances arising fro reaed pary ransacions is discosed in Noe 14, Noe 15, Noe 16, Noe 17, and Noe 21.

(c)

Inforaion regarding copensaion of key anageen personne is as foows:

Gp 2009 rM’000

2008 rM’000

8,599 890 193

5,553 562 104

Shor er epoyee benefis Defined conribuion pan Benefis-in-kind

cmpy 2009 2008 rM’000 rM’000 1,159 210 38

691 103 52

Key anageen personne coprises direcors and execuives of he Group and of he Copany, who have auhoriy and responsibiiy for panning, direcing and conroing he aciviies of he Group and of he Copany eiher direcy or indirecy.

 p 2009

161


41.

seGMent inForMation – GrouP Segen inforaion is priariy presened in respec of he Group’s business segen which is based on he Group’s anageen and inerna reporing srucure. Segen revenue, resus, asses and iabiiies incude ies direcy aribuabe o a segen and hose where a reasonabe basis of aocaion exiss. Unaocaed ies ainy coprise ineres-earning asses and revenue, ineresbearing borrowings and expenses, and corporae asses and expenses. Segen capia expendiure is he oa cos incurred during he financia year o acquire segen asses ha are expeced o be used for ore han one financia year. the accouning poicies of he segens are consisen wih he accouning poicies of he Group. (a)

b gm the ain business segens of he Group coprise he foowing: manufacuring and trading

manufacure and sae of refined sugar and rice.

Panaion

Cuivaion of oi pa, processing and sae of pa producs and he provision of panaion anageen and advisory services.

manageen and Invesen

Invesen hoding and provision of anageen services.

Propery

Propery deveopen and propery invesen.

2009

r Saes o exerna cusoers

r Segen resus Unaocaed incoe Unaocaed expenses

Mfg d tdg rM’000

P rM’000

Mgm d im rM’000

1,310,336

758,726

336

177,689

166,885

(9,460)

Ppy rM’000

t rM’000

-

2,069,398

(250)

334,864 34,767 (65,510)

Profi fro operaions Finance coss Share of resus in joiny conroed eniy Share of resus in associaed copanies

304,121 (55,033)

Profi before axaion taxaion

245,870 (74,131)


171,739

162

(5,879) 2,661


41.

seGMent inForMation – GrouP (cont’D) (a)

b gm (’d)

2009

a Segen asses Invesen in associaed copanies Invesen in joiny conroed eniy Unaocaed asses

Mfg d tdg rM’000

P rM’000

Mgm d im rM’000

2,676,407

2,677,726

51,013

Ppy rM’000

t rM’000

116,869

5,522,015 232,323 12,223 277,130

toa asses

l Segen iabiiies Unaocaed iabiiies

6,043,691

1,404,061

844,792

560,204

798


o fm Capia expendiure Unaocaed capia expendiure

3,593,685

50,166

174,652

—

—

toa capia expendiure

Depreciaion and aorisaion Unaocaed depreciaion and aorisaion

2,809,855 783,830

224,818 72 224,890

27,596

95,249

—

—

122,845 559 123,404

 p 2009

163


41.

seGMent inForMa inForMation tion – GrouP (cont’D) (a)

b gm (’d)

2008

P rM’000

Mgm d im im rM’000

Ppy rM’000

t rM’000

862,178

905,062

326

—

1,767,566

78,076

278,224

Mfg d tdg rM’000

r Saes o exerna cusoers

r Segen resus Unaocaed incoe Unaocaed expenses

(8,922)

1,045

348,423 11,106 (15,334)

Profi fro operaions Finance coss Share of resus joiny conroed eniy

344,195 (48,489) 3,102

Profi before axaion taxaion

298,808 (76,566)


222,242

a Segen asses Invesen in associaed copanies Invesen in joiny conroed eniy Unaocaed asses

684,352

2,251,963

335,972

51,722

toa asses

l Segen iabiiies Unaocaed iabiiies

3,449,642

56,134

160,769

943

755


o fm Capia expendiure Unaocaed capia expendiure

218,601 1,493,260 1,711,861

38,892

169,848

toa capia expendiure

164

3,324,009 20,832 13,101 91,700

—

—

208,740 220 208,960


41.

seGMent inForMa inForMation tion – GrouP (cont’D) (a)

b gm (’d)

2008

Depreciaion and aorisaion Unaocaed depreciaion and aorisaion

Mfg d tdg rM’000 19,954

P  P rM’000

Mgm d im im  rM’000

Ppy rM’000

t rM’000

92,793

—

—

112,747 644 113,391

Significan non-cash non-cash expenses oher han depreciaion, aorisaion and ipairen osses

(b)

—

3,678

—

—

3,678

Ggp gm In deerining he geographica segens of he Group, segen revenue is based on he geographica ocaion of cusoers. Segen asses and segen capia expendiure are based on geographica ocaion of asses.

2009 Revenue Asses Capia expendiure

2008 Revenue Asses Capia expendiure

My rM’000

id rM’000

sgp rM’000

hg Kg rM’000

a rM’000

o rM’000

t rM’000

1,932,588 5,508,451

13,134 186

89,258 7,192

11,879 146

9,810 811

12,729 4,674

2,069,398 5,521,460

224,890

—

—

—

—

—

224,890

1,669,772 3,317,173

13,634 2,581

49,228 2,442

17,008 286

9,517 1,006

8,407 521

1,767,566 3,324,009

208,960

—

—

—

—

—

208,960

 p 2009

1 65


42.

Financial instruMents (a)

Financia risk anageen objecives and poicies the Group’s financia risk anageen poicy is o ensure ha adequae financia resources are avaiabe for he deveopen of he Group’s operaions whis anaging is financia risks, incuding foreign currency exchange risk, ineres rae risk, arke risk, price fucuaion risk, credi risk, iquidiy and cash fow risk.

(b)

Foreign currency exchange risk the Group is exposed o foreign currency risk on saes, purchases, asses and iabiiies ha are denoinaed in a currency oher han Ringgi maaysia. the Group ainains a naura hedge which incudes foreign exchange conrac o iniise he foreign exchange exposure by aching foreign currency incoe wih foreign currency coss. the ne unhedged financia asses and financia iabiiies of he Group and of he Copany ha are no denoinaed in heir funciona currencies are as foows:

ud s D rM’000

cd D rM’000

sgp D rM’000

t rM’000

16,731

—

—

16,731

Oher invesens

—

3,499

—

3,499

trade receivabes

9,075

—

—

9,075

23

—

173

196

Asses hed for sae

4,315

—

—

4,315

Cash and bank baances

4,037

—

—

4,037

20,012

—

—

20,012

F cy

Gp 2009 Invesens in associaed copanies

Oher payabes

Borrowings

166


42.

Financial instruMents (cont’D) ud s D rM’000

cd D rM’000

sgp D rM’000

t rM’000

Invesens in associaed copanies

—

—

20,832

20,832

Oher invesens

—

3,499

—

3,499

trade receivabes

7,081

—

—

7,081

972

—

—

972

—

—

20,186

20,186

—

3,499

—

3,499

—

3,499

—

3,499

F cy

Gp 2008

Cash and bank baances

Aoun owing o associaed copanies

cmpy 2009 Oher Invesens

2008 Oher Invesens

As a he baance shees dae, he Group enered ino forward exchange conracs wih he foowing noiona aoun and auriy:

My Forwards used o hedge rade payabes - Unied Saes Doars

n m 2009 2008 rM’000 rM’000

Wihin 1 year

 p 2009

—

1 67

40,788


42.

Financial instruMents (cont’D) (c)

Ineres rae risk the Group’s incoe and operaing cash f ows are subsaniay independen of he changes in arke ineres raes. Ineres rae exposure arises fro he Group’s borrowings and deposis. the Group anages such exposure by ainaining a pruden ix of fixed and foaing rae banking faciiies.

(d)

Credi risk the Group’s exposure o credi risk arises ainy fro receivabes. Receivabes are oniored on an ongoing basis via anageen reporing procedure and acion is aken o recover debs when due. A he baance shee dae, here were no significan concenraions of credi risk oher han as discosed in Noe 14 and Noe 15. the axiu exposure o credi risk for he Group is he carrying aoun of he financia asses shown in he baance shee.

(e)

liquidiy and cash fow risk the Group seeks o achieve a fexibe and cos effecive borrowing srucure o ensure ha he projeced ne borrowing needs are covered by avaiabe coied faciiies. Deb auriies are srucured in such a way o ensure ha he aoun of deb auring in any one year is wihin he Group’s abiiy o repay and/or refinance. the Group aso ainains a cerain eve of cash and cash converibe invesens o ee is working capia requireens.

(f)

marke risk the Group’s exposure o arke risk arises ainy fro changes in equiy prices. the Group does no use derivaive financia insruens o anage equiy risk. the risk of oss in vaue is iniised via horough anaysis before aking he invesens and coninuous onioring of he perforance and risk of he invesens ade. Equiy invesens cassified as non-curren asses are hed for ong-er. Changes in arke vaues of ong-er invesens, excep where an ipairen occurs or a peranen oss in vaue can be foreseen, do no affec he carrying aouns of he invesens. the Group anages is risk hrough esabished guideines and poicies.

(g)

Price fucuaion risk the Group, in he nora course of business is exposed o price fucuaion risk on coodiies paricuary on pa oi, sugar and rice. the Group iigaes is risk o he price voaiiy hrough consany onioring he oveen of he coodiies prices, and where deeed pruden, seing forward in he physica arke and by enering ino foreign exchange conracs.

(h)

Fair vaues the carrying aouns of cash and cash equivaens, rade and oher receivabes, rade and o her payabes, aoun owing by/o subsidiary copanies and associaed copanies, and shor er borrowings approxiae heir respecive fair vaues due o he reaivey shor er naure of hese financia insruens.

168


42.

Financial instruMents (cont’D) (h)

Fair vaues (con’d) the aggregae fair vaues of he oher financia asses and ong er iabiiies as a he baance shees dae are as foows:

2009

2008

cyg m rM’000

F  rM’000

cyg m rM’000

F  rM’000

4,188 258

4,156 *

4,806 148

10,394 *

F  ter oans (Noe 23) - fixed ineres raes - foaing ineres raes Isaic debs securiies (Noe 23) Coningen iabiiies (Noe 35)

107,424 753,559 185,000 —

103,150 ^ 189,391 —

220,537 102,375 210,000 46

212,526 ^ 208,107 @

cmpy F  Invesen in quoed shares Invesen in quoed oan socks (Noe 9)

3,499 159,990

3,467 254,384

3,499 159,990

9,195 254,384

F  ter oans (Noe 23) - foaing ineres raes

461,247

^

—

—

Gp F  Invesen in quoed shares Invesen in unquoed shares

*

I is no pracicabe o esiae he fair vaue of he unquoed invesen due o ack of ransaced prices.

@

I is no pracicabe o esiae he fair vaue of coningen iabiiies reiaby due o he uncerainies of iing, cos and evenua oucoe.

^

I is no pracicabe o esiae he fair vaue of ong er oan wih foaing ineres raes due o he fucuaion of ineres raes and foreign exchange.

the fair vaues of invesen in quoed shares, quoed oan socks and maaysian Governen Securiies are esiaed based on quoed arke prices. the fair vaue of ong er borrowings is esiaed based on he quoed arke prices for he sae or siiar issues or on he curren raes avaiabe for borrowings wih he sae auriy profie.

 p 2009

169


43.

neW Frs, aMenDMents to Frs anD ic interPretation not Yet aDoPteD A he dae of auhorisaion of hese financia saeens, he Group and he Copany have no appied he foowing Financia Reporing Sandards (“FRSs”), revised FRSs, Issues Coiee (“IC”) Inerpreaions, aendens o FRSs and IC Inerpreaions ha have been issued by he maaysian Accouning Sandards Board (“mASB”) bu are no ye effecive:

eff d f f pd gg   f FRS 8: Operaing Segens FRS 4: Insurance Conracs FRS 7: Financia Insruens: Discosures FRS 101: Presenaion of Financia Saeens (Revised) FRS 123: Borrowing Coss FRS 139: Financia Insruens: Recogniion and measureen Aendens o FRS 1: Firs-ie Adopion of Financia Reporing Sandards and FRS 127: Consoidaed and Separae Financia Saeens: Cos of an Invesen in a Subsidiary, Joiny Conroed Eniy or Associae Aendens o FRS 2: Share-based Payen – Vesing Condiions and Canceaions Aendens o FRS 132: Financia Insruens: Presenaion Aendens o FRS 139: Financia Insruens: Recogniion and measureen, FRS 7: Financia Insruens: Discosures and IC Inerpreaion 9: Reassessen of Ebedded Derivaives IC Inerpreaion 9: Reassessen of Ebedded Derivaives IC Inerpreaion 10: Ineri Financia Reporing and Ipairen IC Inerpreaion 11: FRS 2 - Group and treasury Share transacion IC Inerpreaion 13: Cusoer loyay Prograes IC Inerpreaion 14: FRS 119 - the lii on a Defined Benefi Asse, miniu Funding Requireens and heir Ineracion Aendens o FRSs conained in he docuen enied “Iproveens o FRSs (2009)” FRS 1: Firs-ie Adopion of Financia Reporing Sandards FRS 3: Business Cobinaions FRS 127: Consoidaed and Separae Financia Saeens Aendens o FRS 2: Share-based Payen Aendens o FRS 5: Non-curren Asses Hed for Sae and Disconinued Operaions Aendens o FRS 138: Inangibe Asses Aendens o IC Inerpreaion 9: Reassessen of Ebedded Derivaives IC Inerpreaion 12: Service Concession Arrangeens

170


1 Juy 2009 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010

1 January 2010 1 January 2010 1 January 2010

1 January 2010 1 January 2010 1 January 2010 1 January 2010 1 January 2010

1 January 2010 1 Juy 2010 1 Juy 2010 1 Juy 2010 1 Juy 2010 1 Juy 2010 1 Juy 2010 1 Juy 2010 1 Juy 2010

43.

neW Frss, aMenDMents to Frs anD ic interPretation not Yet aDoPteD (cont’D) eff d f f pd gg   f IC Inerpreaion 15: Agreeens for he Consrucion of Rea Esae IC Inerpreaion 16: Hedges of a Ne Invesen in a Foreign Operaion IC Inerpreaion 17: Disribuions of Non-cash Asses o Owners Aendens o FRS 132: Financia Insruens: Presenaion - paragraphs 95A, 97AA and 97AB - paragraphs 11,16 and 97E Aendens o FRS 1: liied Exepion fro Coparaive FRS 7 Discosures of Firs-ie Adopers Aendens o FRS 7: Iproving Discosures abou Financia Insruens

1 Juy 2010 1 Juy 2010 1 Juy 2010 1 January 2010 1 march 2010 1 January 2011 1 January 2011

the Group and he Copany pan o adop he aboveenioned FRSs, revised FRSs, IC Inerpreaions, aendens o FRSs and IC Inerpreaions which are reevan o he Copany’s operaion when hey becoe effecive. Uness oherwise described beow, he Direcors of he Group and of he Copany anicipae ha he appicaion of he above FRSs, IC Inerpreaions, aendens o FRSs and IC Inerpreaions wi have no aeria ipac on he financia saeens of he Group upon heir iniia adopion. (a)

FRS 8: Operaing Segens this FRS requires he eniy o discose he foowing: (i)

Segen inforaion based on he inforaion reviewed by he eniy’s chief decision aker.

(ii)

Facor used o idenify he eniy’s reporabe segens, incuding he basis of organisaion (for exape, wheher anageen has chosen o organise he eniy around differences in producs and services, geographica areas, reguaory environens, or a cobinaion of facors and wheher operaing segens have been aggregaed).

(iii)

type of producs and services fro which each reporabe segen derives is revenues.

(iv)

the aouns of addiions o non-curren asses oher han financia insruens, deferred ax asses, posepoyen benefi asses and righs arising under insurance conracs.

(v)

Inforaion abou he exen of is reiance on is ajor cusoers. If revenues fro ransacions wih a singe exerna cusoer aoun o 10 per cen or ore of an eniy’s revenues, he eniy sha discose ha fac, he oa aoun of revenues fro each such cusoer, and he i deniy of he segen or segens reporing he revenues.

 p 2009

171


43.

neW Frss, aMenDMents to Frs anD ic interPretation not Yet aDoPteD (cont’D) (b)

FRS 7: Financia Insruens: Discosures this new sandard requires discosures in financia saeens ha enabe users o evauae he significance of financia insruens for he eniy’s financia posiion and perfor ance, and he naure and exen of risks arising fro financia insruens o which an eniy is exposed and how hese risks are anaged. this sandard requires boh quaiaive discosures describing anageen’s objecives, poicies and processes for anaging hose risks, and quaniaive discosures providing inforaion abou he exen o which an eniy is exposed o risk, based on inforaion provided inernay o he eniy’s key anageen personne.

(c)

FRS 139: Financia Insruens: Recogniion and measureen this sandard esabishes he principes for he recogniion, derecogniion and easureen of an eniy’s financia insruens and for hedge accouning.

(d)

FRS 3: Business Cobinaions the revised sandard coninues o appy he acquisiion ehod o business cobinaions, wih soe significan changes. For exape, a payens o purchase a business are o be recorded a fair vaue a he acquisiion dae, wih coningen payens cassified as deb subsequeny re-easured hrough he incoe saeen. there is a choice on an acquisiion-by-acquisiion basis o easure he non-conroing ineres in he acquiree eiher a fair vaue or a he non-conroing ineres’s proporionae share of he acquiree’s ne asses. A acquisiion reaed cos shoud be expensed.

(e)

FRS 127: Consoidaed and Separae Financia Saeens the revised sandard requires he effecs of a ransacions wih non-conroing ineres o be recorded in equiy if here is no change in conro and hese ransacions wi no onger resu in goodwi or gains and osses. the sandard aso specifies he accouning when conro is os. Any reaining ineres in he eniy is re-easured o fair vaue, and a gain or oss is recognised in profi or oss. Oher ain changes incude he requireen o aocae osses o nonconroing ineress “NCI” (forery known as inoriy ineres), even if i resus in he NCI o be in a defici posiion.

(f)

FRS 101: Presenaion of Financia Saeens this sandard requires an eniy o presen, in a saeen of changes in equiy, a owner changes in equiy. A nonowner changes in equiy (i.e. coprehensive incoe) are required o be presened in one saeen of coprehensive incoe or in wo saeens (a separae incoe saeen and a saeen of coprehensive incoe). Coponens of coprehensive incoe are no peried o be presened in he saeen of changes in equiy. In addiion, a saeen of financia posiion is required a he beginning of he earies coparaive period foowing a change in accouning poicy, he correcion of an error or he recassificaion of ies in he financia saeens. FRS 101 does no have any ipac on he Group’s and he Copany’s financia posiion or resus.

172


43.

neW Frss, aMenDMents to Frs anD ic interPretation not Yet aDoPteD (cont’D) (g)

IC Inerpreaion 14: FRS119 - the lii on a Defined Benefi Asse, miniu Funding Requireens and their Ineracion this Inerpreaion appies o a pos-epoyen defined benefis and oher ong-er epoyee defined benefis. this Inerpreaion carifies ha an econoic benefi is avaiabe if he Group can reaise i a soe poin during he ife of he pan or when he pan iabiiies are seed, and ha i does no depend on how he Group inends o use he surpus. A righ o refund is avaiabe o he Group in sipuaed circusances and he econoic benefi avaiabe sha be easured as he aoun of he surpus a he baance shee dae ess any associaed coss. If here are no iniu funding requireens, he econoic benefi avaiabe sha be deerined as a reducion in fuure conribuions as he ower of he surpus in he pan and he presen vaue of he fuure service cos o he Group. If here is a iniu funding requireen for conribuions reaing o he fuure accrua of benefis, he econoic benefi avaiabe sha be deerined as a reducion in fuure conribuions a he presen vaue of he esiaed fuure service cos ess he esiaed iniu funding required in each financia year.

(h)

IC Inerpreaion 15: Agreeens for he Consrucion of Rea Esae this new inerpreaion provides guidance on accouning for revenue fro he consrucion of rea esae where he Group underakes a propery deveopen projec. the ipeenaion of his inerpreaion wi change he Group’s revenue recogniion o ake pace a he ie of deivery insead of recognised based on he percenage of copeion ehod.

(i)

IC Inerpreaion 17: Disribuions of Non-cash Asses o Owners this Inerpreaion appies o non-reciproca disribuions of non-cash asses by he Group o is owners in heir capaciy as owners, as we as di sribuions ha give owners a choice of receiving eiher non-cash asses or a cash aernaive. this Inerpreaion aso appies o disribuions in which a owners of he sae cass of equiy insruens are reaed equay. the iabiiy o pay a dividend sha be recognised when he dividend is appropriaey auhorized and is no onger a he discreion of he Group. the iabiiy sha be easured a he fair vaue of he asses o be disribued. If he Group gives is owners a choice of receiving eiher a non-cash asse or a cash aernaive, he dividend payabe sha be esiaed by considering he fair vaue of boh aernaives and he associaed probabiiy of he owners’ seecion. A he end of each reporing period, he carrying aoun of he dividend payabe sha be reeasured and any changes sha be recognised in equiy. A he seeen dae, any difference beween he carrying aouns of he asses disribued and he carrying aoun of he dividend payabe sha be recognised in profi or oss. the Group does no expec any ipac on he financia saeens arising fro he adopion of his Inerpreaion. the Group and he Copany have appied he ransiiona provisions in FRS 7 and FRS 139 which exep eniies fro discosing he possibe ipac arising fro iniia appicaion of he respecive sandards on he financia saeens of he Group and he Copany.

 p 2009

173


44.

siGniFicant events DurinG the Financial Year During he financia year, he foowing significan evens ook pace: (a)

Acquisiion of subsidiary copanies: (i)

Padiberas Nasiona Berhad (“BERNAS”) the Copany had on 28 Augus 2009 enered ino condiiona share sae agreeens wih he foowing paries:1.

Wang tak Copany liied o acquire acquire 148,281,100 ordinary shares of Rm1.00 each (“BERNAS (“BERNAS Shares”) in BERNAS represening 31.52% equiy ineres in BERNAS for a oa cash consideraion of Rm308,424,688 on he basis of Rm2.08 per BERNAS Share (“Acquisiion 1”); and

2.

Gandingan Bersepadu Sdn Bhd (“GBSB”) o acquire acquire 104,599,485 BERNAS Shares represening 22.24% equiy ineres in BERNAS for a oa cash consideraion of Rm217,566,928.80 on he basis of Rm2.08 per BERNAS Share (“Acquisiion 2”) pursuan o a dividend-in-specie exercise of BERNAS Shares by a subsidiary of GBSB, naey Budaya Generasi (m) Sdn Bhd (“BGSB”) which was a subsania sharehoder of BERNAS.

GBSB and BGSB were paries acing in concer (“PAC”) wih he Copany pursuan o he maaysian Code on take-overs and mergers, 1998 (“Code”) and upon copeion of Acquisiion 1, he Copany and is PAC coecivey hod 62.31% equiy ineres in BERNAS. Accordingy, pursuan o Secion 33A of he Securiies Coission Ac, 1993 and Secion 6 of he Code, he Copany exended an uncondiiona andaory genera offer (“mGO”) for he reaining 322,120,400 BERNAS Shares no owned by he Copany when Acquisiion 1 becae uncondiiona on 28 Ocober 2009 a Rm2.08 per BERNAS Share. Acquisiion 1 and 2 were copeed on 2 Noveber 2009 and 20 January 2010 respecivey. the mGO was cosed on 9 Deceber 2009. As a he cosing dae, he Copany received accepances o he Offer of 18.81% of he BERNAS Shares and BERNAS becae a subsidiary of he Copany wih a oa conroing ineres of 50.33%. Deais of he ne asses acquired and effec on he acquisiion is discosed in Noe 7(d)(iii). (ii)

Norhern Inergraed Agricuure Sdn Bhd (“NIA”) On 21 Augus 2009, tradewinds Panaion Berhad (“tPB”) enered ino a condiiona Sae and Purchase Agreeen wih Gerak mashyur (maaysia) Sdn Bhd (“GmSB”) for he acquisiion of 700,000 ordinary shares of Rm1.00 each, represening 70% of he equiy ineres of NIA for a oa cash consideraion of Rm50.36 iion. NIA is a propery deveopen copany and was esabished as a join venure vehice beween GmSB and Perbadanan Keajuan Negeri Kedah o underake he deveopen of he second border own beween maaysia and thaiand known as “Bandar Sepadan Koa Pura”. NIA owns 5 parces of easehod agricuure and ocaed a Koa Pura, muki Baang tunggang Kiri, Daerah Padang terap, Negeri Kedah easuring in aggregae approxiaey 2,612.99 acres (“NIA lands”) of which 169.44 acres had been surrendered o he Governen foowing copeion of heir projec in Noveber 2008. 1,115.02 acres of he NIA lands had been paned wih rubber rees whis he reaining and has he benefi of an approved maser Pan for he deveopen of Bandar Sepadan Koa Pura. the acquisiion of NIA was copeed on 23 Ocober 2009.

174


44.

siGniFicant events DurinG the Financial Year (cont’D) (a)

Acquisiion of subsidiary copanies: (con’d) (iii)

masreus Oi Pa Panaion Sdn Bhd (“masreus”) On 3 Apri 2009, Reus Panaion Sdn Bhd enered ino an agreeen o acquire he enire issued and paid-up capia of masreus Oi Pa Panaion Sdn Bhd coprising 100,000 ordinary shares of Rm1 each for a cash consideraion of Rm7,208,000.

(iv)

Prisa Spekra Sdn Bhd (“PSSB”) On 26 Ocober 2009, tPB acquired he enire sharehoding of PSSB for a cash consideraion of Rm2.0. PSSB is an invesen hoding copany. On 30 Ocober 2009, PSSB enered ino a condiiona Share Sae Agreeen wih Sei Bayu Sdn Bhd for he acquisiion of 125,709,000 ordinary shares of Rm1 each, represening he enire issued and paid-up capia of mARDEC Berhad (“mardec”) for a oa purchase consideraion of Rm150.0 iion (“Proposed Acquisiion of mardec”), which sha be payabe in he foowing anner:(1)

a firs insaen of Rm45.0 iion or 30% of he purchase purchase consideraion o be paid on he copeion dae; and

(2)

a second insaen insaen of Rm105.0 iion or 70% of he purchase purchase consideraion o be paid on or before he as day of a period of 9 onhs fro he copeion dae (or such onger period as he paries ay uuay agree in wriing).

mardec is an invesen hoding copany and hrough is oca and overseas subsidiary and associaed copanies, is invoved in he processing and rading of naura rubber and he anufacuring of vaue-added rubber and poyer producs. the Proposed Acquisiion of mardec is condiiona upon he fufien and saisfacion of he fo owing condiions preceden:-

(b)

(1)

he approva of he Econoic Panning Panning Uni of he Prie miniser’s Deparen;

(2)

he approva of he exising financier(s) financier(s) of mardec, mardec, if required; required;

(3)

he approva approva of he sharehoders sharehoders of tPB a a genera eeing o be convened; convened;

(4)

tPB and PSSB being saisfied wih he he resus and findings of he financia and ega due diigence invesigaions ino mardec and is subsidiaries and if appicabe, he saisfacory resouion and deerinaion of any issues arising fro he due diigence invesigaions; and

(5)

oher requisie approvas, if any.

Dissouion of an associaed copany On 30 Sepeber 2009, tma liied, a 20% owned associae of Quek Shin & Sons Pe ld, which is an indirec subsidiary of he Copany was vounariy dissoved.

 p 2009

1 75


44.

siGniFicant events DurinG the Financial Year (cont’D) (c)

Appicaion for sriking-off of subsidiary copanies On 30 Deceber 2009, Gugusan Induk Sdn Bhd, Insan Deia Sdn Bhd, JtOP lebir Panaion Sdn Bhd and teon Choon Quarry Sdn Bhd, he doran indirec subsidiaries of he Copany, subied appicaions o he Copanies Coission of maaysia for sriking off.

(d)

Disposa of associaed copanies by BERNAS (i)

On 20 Noveber 2008, BERNAS enered ino a Sae and Purchase Agreeen o dispose of is enire sharehoding sharehoding of 2,856,000 ordinary shares of Rm1.00 each in Keongco Hodings Sdn Bhd (“KHSB”), represening 20% of he issued and paid-up capia of KHSB for a oa cash consideraion of Rm1,428,000 o he exising sharehoders of KHSB. the said disposa was copeed during he financia year.

(ii)

On 20 Noveber 2008, a whoy owned subsidiary of BERNAS, BERNAS Overseas (l) ld. (“BOl”) enered ino a Sae and Purchase Agreeen wih Keongco Hodings Sdn Bhd o dispose of is enire sharehoding of 12,000 ordinary shares of Unied Saes Doar One (USD1.00) each in Keongco Overseas liied (“KOl”), represening 20% of he issued and paid-up capia of KOl for a oa cash consideraion of USD12,000. the said disposa was copeed during he financia year.

(iii)

On 17 Sepeber 2009, a whoy owned subsidiary of BERNAS, BERNAS Overseas (l) ld. (“BOl”) (“BOl”) enered ino a Sae and Purchase Agreeen wih thai Hue (2511) Co. ld and Huay Chuan Rice Co. ld in respec of he disposa of BOl’s enire 49% equiy ineres hed in Asian Peninsua Corporaion liied for a cash consideraion of Bah 40,000,000 or equivaen o Rm4,240,000. the said disposa was copeed on 12 march 2010.

(e)

Addiiona ineres in associaed copany On 2 Deceber 2009, BERNAS enered ino a condiiona Share Sae and Purchase Agreeen (“SAA”) wih Johor Por Berhad (“JPB”) for he acquisiion of 12,000,000 ordinary shares of Rm1.00 each which is equivaen o 75% of equiy ineres in BERNAS logisic Sdn. Bhd. (“BlSB”) fro JPB for a purchase consideraion of Rm11,760,000. the SAA is ye o be copeed as a odae and upon copeion of he SAA, BlSB wi be a whoy owned subsidiary of BERNAS.

(f)

terinaion of Sub-lease Agreeen On 2 Deceber 2009, BERNAS enered ino a terinaion Agreeen o erinae he Sub-lease Agreeen beween Johor Por Berhad (“JPB”) daed 6 Ocober 2005 (“terinaion Agreeen”). Subsequen o he copeion of he terinaion Agreeen, he vacan possession of he warehouses had been surrendered by BERNAS o JPB, and JPB is o refund Rm20,725,000 as fu and fina seeen wihin 6 onhs fro he dae of he terinaion Agreeen.

176


45.

subsiDiarY subsiDi arY anD associateD coMPanies (a)

the subsidiary copanies and sharehodings herein are as foows:

nm f cmpy

cy f p

eff i (%) 2009 2008

Pp 

D dg: Cenra Sugars Refinery Sdn Bhd

maaysia

100

100

Sugar refining

Gua Padang terap Sdn Bhd

maaysia

100

100

Sugar refining

Dea Deighs Sdn Bhd

maaysia

100

100

Invesen hoding and anageen

Perai Pa Fibre Sdn Bhd

maaysia

100

100

Doran

Reus Panaion Sdn Bhd

maaysia

60

60

Cuivaion of oi pa and producion of crude pa oi

Sovereign Pace Sdn Bhd

maaysia

100

100

Ceased operaions

tradewinds Oi Pa Berhad

maaysia

100

100

Doran

+ *

tradewinds Panaion Berhad

maaysia

70

70

Invesen hoding and provision of anageen services

+ * #

Padiberas Nasiona Berhad

maaysia

50

—

Procure, coec, process, ipor, expor, purchase rice, paddy and oher grains, aciviies in reaion o he disribuion of rice and invesen hoding

*

 p 2009

1 77


45.

subsiDiarY anD associateD coMPanies (cont’D) (a)

the subsidiary copanies and sharehodings herein are as foows: (con’d)


cy f p

eff i (%) 2009 2008

Pp 

id dg: sdy mp f D Dg sd bd:

*

Dea Deighs (Cabodia) Co ld

Cabodia

100

100

Doran

tradewinds Cabodia Co ld

Cabodia

100

100

Doran

tradewinds Reay Co ld

Cabodia

100

100

Propery deveopen

Croesus liied

Hong Kong

100

100


Viena

70

70

Doran

maaysia

60

—

Doran

sdy mpy f c lmd: @ *

HBt Reay Copany liied

sdy mpy f r P sd bd: masreus Oi Pa Panaion Sdn Bhd

sdy mp f tdwd P bd: Aaan Penaga (m) Sdn Bhd

maaysia

70

70


Bahera Bahagia Sdn Bhd

maaysia

49

49

Cuivaion of oi pa

Barisan tekad Sdn Bhd

maaysia

49

49


Binu Panaions Sdn Bhd

maaysia

70

70


*

Ibok Panaion Sdn Bhd

maaysia

70

70


*

Johore tenggara Oi Pa Berhad

maaysia

70

70


*

178


45.




cy f p

eff i (%) 2009 2008

Pp 

Kupuan Kris Jai Sdn Bhd

maaysia

49

49


*

ladang Chendana Sdn Bhd

maaysia

70

70


*

ladang mawar Sdn Bhd

maaysia

70

70


ladang Perai Sdn Bhd

maaysia

70

70


*

ladang Serasa Sdn Berhad

maaysia

70

70


*

Norhern Inergraed Agricuure Sdn Bhd

maaysia

49

—

Propery deveopen

*

Prisa Spekra Sdn Bhd

maaysia

70

—


*

Quek Shin & Sons Pe. ld.

Singapore

70

70


*

Syarika ladang Sawi Cheru Sdn Bhd

maaysia

70

70


*

teon Choon Reay Copany Sdn Berhad

maaysia

70

70


*

tradewinds Agro Services Sdn Bhd

maaysia

70

70

Panaion anageen and advisory services

maaysia

70

70


*

tradewinds Panaion Services Sdn Bhd

*

tradewinds Panaion manageen Sdn Bhd

maaysia

70

70


*

tradewinds Panaion Capia Sdn Bhd

maaysia

70

70

Soe and specific purpose of underaking Isaic Securiies ransacion

 p 2009

179


45.




cy f p

*

maaysia

tradewinds Panech Sdn Bhd

tradewinds Corridor Sdn Bhd

maaysia

eff i (%) 2009 2008

Pp 

70

70

technica suppor and advisory services

70

70

Cuivaion of oi pa and rubber

sdy mp f am Pg (M) sd bd: Aaan Peia Pasai Sdn Bhd

maaysia

42

42


Arah Bersaa Sdn Bhd

maaysia

49

49


meur Geiang Sdn Bhd

maaysia

49

49


Senandung masyhur Sdn Bhd

maaysia

59

59

Doran

tradewinds tanjung Aan Panaion Sdn Bhd

maaysia

49

49


trans Kenyaang Sdn Bhd

maaysia

59

59


Usaha Wawasan Sdn Bhd

maaysia

49

49


sdy mp f J tgg o Pm bd: *

Agroaju landscape Sdn Bhd

maaysia

70

70

Ceased operaions

*

Agroaju Sendirian Berhad

maaysia

70

70


*

Barisan Perangsang Sdn Bhd

maaysia

36

36

Ceased operaions

*

Gugusan Induk Sdn Bhd

maaysia

70

70


*

Insan Deia Sdn Bhd

maaysia

70

70

Ceased operaions

*

JtOP lebir Panaion Sdn Bhd

maaysia

70

70

Doran

180


45.




cy f p

eff i (%) 2009 2008

*

ladang Peri tenggara Sdn Bhd

maaysia

70

70


*

m.P. Panaion Sdn Bhd

maaysia

70

70


*

Perodaan Peangi Sdn Bhd

maaysia

70

70


*

Peranian Johor tenggara Sdn Bhd

maaysia

70

70

Cuivaion of oi pa and ania husbandry

*

Seai Segar Sdn Bhd

maaysia

70

70

Cuivaion of oi pa and agricuure conracors

*

tanah Seai Sdn Bhd

maaysia

70

70


*

Uni-Agro Panaions (trengganu) Sdn Bhd

maaysia

70

70


49

49


maaysia

70

70

Ceased operaions

Pp 

sdy mpy f M.P. P sd bd: *

ladang Sungai Reai Sdn Bhd

maaysia

sdy mpy f t c ry cmpy sd bd: *

teon Choon Quarry Sdn Bhd

sdy mp f n igd ag sd bd: *

NIA Deveopen Sdn Bhd

maaysia

34

—

Doran

*

NIA Infrasrucure Sdn Bhd

maaysia

34

—

Doran

 p 2009

181


45.




cy f p

eff i (%) 2009 2008

Pp 

sdy mp f Pd n bd: *

BERNAS Producion Sdn Bhd

maaysia

50

—

Rice processing

*

Era Baya Koa Sdn Bhd

maaysia

30

—

trader, disribuor and suppier of rice

*

Syarika Faiza Sdn Bhd

maaysia

26

—


*

Consoidaed BERNAS Unied Disribuors Sdn Bhd

maaysia

50

—

Doran

*

Jasine Food Corporaion Sdn Bhd

maaysia

31

—


*

YHl Hoding Sdn Bhd

maaysia

26

—


*

BERNAS Seed Pro Sdn. Bhd.

maaysia

50

—

Paddy seed producion

*

BERNAS Agroech Sdn Bhd

maaysia

50

—


*

Beras Corporaion Sdn Bhd

maaysia

50

—

Processing and rading of rice

*

BERNAS Doinas Sdn Bhd

maaysia

50

—

*

Edaran BERNAS Nasiona Sdn Bhd

maaysia

40

—


*

BERNAS Overseas (l) liied

maaysia

50

—

Offshore invesen hoding copany

*

BERNAS Engineering & technoogy Sdn Bhd

maaysia

50

—

Doran

*

P.B Consrucion & Suppies Sdn Bhd

maaysia

50

—

Doran

*

BERNAS Reay & Deveopen Sdn Bhd

maaysia

50

—

Doran

182



45.




cy f p

eff i (%) 2009 2008

*

BERNAS Uaa Sdn Bhd

maaysia

50

—

Doran

*

BERNAS Perdana Sdn Bhd

maaysia

50

—

Doran

*

Beika Corporaion Sdn Bhd

maaysia

50

—

Doran

*

BERNAS (Sabah) Sdn Bhd

maaysia

50

—

Doran

*

BERNAS (Sarawak) Sdn Bhd

maaysia

50

—

Doran

*

BERNAS Fisheries Sdn Bhd

maaysia

50

—

Doran

*

BERNAS-KmE Sdn Bhd

maaysia

50

—

Doran

*

BERNAS Agrogreen Sdn Bhd

maaysia

50

—

Doran

*

BERNAS Projec & Deveopen Sdn Bhd

maaysia

50

—

Doran

*

BERNAS Inernaiona trading ld.

thaiand

48

—

Processing and rading of rice and oher reaed food produc

—

Doran

Pp 

sdy mpy f cdd bernas ud D sd bd: *

machind Reay Sdn Bhd

maaysia

50

sdy mp f Jm Fd cp sd bd: *

Jasine Food (Ipoh) Sdn Bhd

maaysia

26

—


*

Jasine Food (Johor Bahru) Sdn Bhd

maaysia

26

—


*

Jasine Food (Aor Sear) Sdn Bhd

maaysia

26

—


*

Jasine Khida & Hara Sdn Bhd

maaysia

26

—

leing properies

 p 2009

183


45.




cy f p

eff i (%) 2009 2008

*

JS Jasine Sdn Bhd

maaysia

13

—


*

Jasine Food (Sereban) Sdn Bhd

maaysia

26

—


*

Jasine Food (Prai) Sdn Bhd

maaysia

26

—


*

Jasine Rice mi (tunjang) Sdn Bhd

maaysia

26

—

Rice ier and rice rader

*

Jasine Food (Kuanan) Sdn Bhd

maaysia

26

—


Pp 

sdy mp f Yhl hdg sd bd: *

YHl trading (Kl) Sdn Bhd

maaysia

26

—


*

YHl trading (Johor) Sdn Bhd

maaysia

26

—


*

YHl trading (Segaa) Sdn Bhd

maaysia

26

—


*

YHl trading (Kedah) Sdn Bhd

maaysia

26

—


*

YHl trading (meaka) Sdn Bhd

maaysia

26

—


*

YHl trading (terengganu) Sdn Bhd

maaysia

26

—


*

YHl trading (Kuanan) Sdn Bhd

maaysia

26

—

Doran

31

—

manufacuring and sae of vericei

sdy mpy f Jm r M (tjg) sd bd: *

Jasine Rice Producs Sdn Bhd

184

maaysia


45.




cy f p

eff i (%) 2009 2008

Pp 

sdy mpy f bernas ag sd bd: *

Padi Gedong Sdn Bhd

maaysia

31

—

Doran

sdy mp f b cp sd bd: *

Sazarice Sdn Bhd

maaysia

48

—


*

Dayabes Sdn Bhd

maaysia

50

—


*

Sabarice Sdn Bhd

maaysia

28

—


sdy mp f Dy sd bd: *

Haskarice Food Sdn Bhd

maaysia

26

—


*

Hock Chiong Foodsuff Sdn Bhd

maaysia

26

—


*

Ban Say tong Sdn Bhd

maaysia

26

—


*

tong Seng Hua Rice trading Sdn Bhd

maaysia

26

—


26

—

Doran

sdy mpy f bernas Dm sd bd: *

BERNAS Chaff Producs Sdn Bhd

maaysia

 p 2009

185


45.


the subsidiary copanies and sharehodings herein are as foows: (con’d) *

Copanies no audied by Anuaru Azizan Chew & Co.

+

Copanies ised on Bursa maaysia Securiies Berhad.

@

the audied financia saeens for he financia year ended 31 Deceber 2009 of his subsidiary copany are no avaiabe a he dae he financia saeens of he Group are auhorised for issue. However, he Direcors are of he opinion ha he financia resus of his subsidiary copany are no aeria o he Group as he said subsidiary copany is doran and is curreny in he process of being wound up by he Group.

#

the Governen of maaysia (“Specia Sharehoder”) hods one (1) uni of Specia Righs Redeeabe Preference Share (“Specia Share”) a Rm1 each in his subsidiary copany. the ain feaures of he Specia Shares are as foows: (i)

the Specia Share ay ony be hed by or ransferred o he miniser of Finance Incorporaed or is successor or any miniser, represenaive or any person acing on behaf of he Specia Sharehoder.

(ii)

the Specia Sharehoder has he righ o receive noice of, and aend and speak a, a genera eeings or any oher eeing of any cass of sharehoders of he subsidiary copany, bu he Specia Share sha carry no righ o voe nor oher righs a any such eeing.

(iii)

the Specia Sharehoder has he righ o require he subsidiary copany o redee he Specia Share a par any ie by serving wrien noice upon he subsidiary copany and deivering he reevan share cerificae.

(iv)

Cerain aers which vary he righs aached o he Specia Share can ony be effecive wih he consen in wriing of he Specia Sharehoder, in paricuar aers reaing o he aenden or reova or aeraion of he effec of he Specia Share, he creaion and issue of addiiona shares which carry differen voing righs, he dissouion of he subsidiary copany, subsania disposa of asses, aagaaion, erger and ake over.

(v)

the Specia Sharehoder has he righ o review a poicies, prograes, projecs and coercia aciviies underaken or proposed o be underaken by he subsidiary copany, he righ o veo any resouion proposed o be passed by he board of direcors or he sharehoders of he subsidiary copany if he Governen considers ha i is necessary o do so in he naiona ineres and securiy of maaysia.

(vi)

the Specia Sharehoder has he righ o veo any resouion proposed o be passed by he board of direcors or he sharehoders of he subsidiary copany purporing o aend he provisions of he meorandu and Arices of Associaion of he subsidiary copany which affecs he righs or any aer reaing o he Specia Share or he righs aaching o he Specia Share.

186


45.

subsiDiarY anD associateD coMPanies (cont’D) (b)

the associaed copanies and sharehodings herein are as foows:


cy f p

eff i (%) 2009 2008

Pp 

ad mpy f J tgg o Pm bd: Hak JtOP Sdn Bhd

maaysia

28

28

Ceased operaions

—

14

Wound up

ad mpy f qk s & s P. ld.: @

tma liied

Singapore

ad mp f Pd n bd:

*

Gardenia Bakeries (Kl) Sdn Bhd

maaysia

15

—

Bread anufacuring and bakery

Kiang Beras Fajar Sdn Bhd

maaysia

25

—

Doran

Forua tiur Sdn Bhd

maaysia

20

—

Doran

Ban Heng Bee Hodings Sdn Bhd

maaysia

10

—

Doran

Serba Wangi Sdn Bhd

maaysia

26

—


OEl Reay Hodings Sdn Bhd

maaysia

15

—


BERNAS logisics Sdn Bhd

maaysia

13

—

Provision of ogisics services

Unied maayan Four (1996) Sdn Bhd

maaysia

23

—

manufacuring and rading of whea four

 p 2009

187


45.




cy f p

eff i (%) 2009 2008

Pp 

ad mpy f bernas Dm sd bd: BERNAS Feedsuff Sdn Bhd

maaysia

25

—

trading in a kinds of rice brand and broken rice

15

—

Whoesae and rading of rice and rice reaed producs

ad mpy f b cp sd bd: liansin trading Sdn Bhd

maaysia

sdy mp f Kg b Fj sd bd:

*

Fajar Jerun Sdn Bhd

maaysia

25

—

Doran

Fajar Jerun (Negeri Sebian) Sdn Bhd

maaysia

25

—

Doran

Serba Wangi (Kl) Sdn Bhd

maaysia

26

—

Serba Wangi JH Sdn Bhd

maaysia

14

—



sdy mp f s Wg sd bd:

*

Serba Wangi (PG) Sdn Bhd

maaysia

24

—


Serba Wangi (Perak) Sdn Bhd

maaysia

26

—


188


45.




*

cy f p

eff i (%) 2009 2008

Pp 

Eng Chuan Chan Sdn Bhd

maaysia

21

—


Serba Wangi ml Sdn Bhd

maaysia

14

—


SW transpor Sdn Bhd

maaysia

26

—

Provision of ranspor services

sdy mp f oel ry hdg sd bd: OEl Disribuion (Kedah) Sdn Bhd

maaysia

15

—


OEl Disribuion (Perak) Sdn Bhd

maaysia

15

—


OEl Origin (Kedah) Sdn Bhd

maaysia

15

—


OEl Disribuion (Penang) Sdn Bhd

maaysia

15

—


OEl Disribuion (Johor) Sdn Bhd

maaysia

15

—


OEl Disribuion (Seangor) Sdn Bhd

maaysia

9

—


OEl Disribuion (Kl) Sdn Bhd

maaysia

9

—


OEl Food manufacuring Sdn Bhd

maaysia

15

—

manufacuring of heah drinks

 p 2009

189


45.




cy f p

eff i (%) 2009 2008

Pp 

sdy mp f l tdg sd bd: lianye trading Sdn Bhd

maaysia

15

—

Genera rading and rice whoesaer

liansin trading (miri) Sdn Bhd

maaysia

15

—

Doran

sdy mp f Gd bk (Kl) sd bd: Gardenia Saes & disribuion Sdn Bhd

maaysia

15

—

Saes and disribuion of bread

Everyday Bakery & Confecionery Sdn Bhd

maaysia

15

—

Bread anufacuring and bakery

ad mp f bernas o (l) lmd: #

Asian Peninsua Corporaion ld.

thaiand

25

—

Rice rading

Irfan Noan BERNAS (Pv) liied

Pakisan

10

—

Rice rading

@

the associaed copany was dissoved under a ebers’ vounary iquidaion during he financia year.

^

the financia resus of Hak JtOP Sdn Bhd have no been equiy accouned for as no financia saeens are avaiabe. the associaed copany is curreny inacive and he Direcors are of he opinion ha he effec of he non-equiy accouning on he financia resus of Hak JtOP Sdn Bhd is no aeria o he financia saeens of he Group.

*

the Group regards hese copanies as associaed copanies by virue of is pary indirec sharehoding hrough anoher associaed copany, Ban Heng Bee Hoding Sdn Bhd.

#

the invesen cos has been recassified as asses hed for sae during he financia year.

190


46.

coMParative FiGures

Cerain coparaive figures have been resaed o confor wih curren year’s presenaion as foows:

a py pd rM’000

rf rM’000

a rd rM’000

6,994 1,360 57,802

45,530 — —

110

110

c fw sm Group Cash fow fro operaing aciviies: - (Increase)/decrease in working capia – Payabes - Exchange difference - Ineres paid

38,536 (1,360) (57,802)

Cash fow fro invesing aciviies: - Deposi received for disposa of non-curren asses hed for sae

—

Cash fow fro financing aciviies: - Aoun owing o associaed copany - Dividend paid o inoriy sharehoders of subsidiary copanies - Ineres paid

(298) — —

(1,360)

(1,658)

(7,104) (57,802)

(7,104) 57,802

Copany Cash fow fro operaing aciviies: - Ineres paid

(8,249)

Cash fow fro operaing aciviies: - Ineres paid

47.

—

8,249

(8,249)

—

(8,249)

Date oF authorisation For issue the financia saeens of he Group and of he Copany for he financia year ended 31 Deceber 2009 were auhorised for issue in accordance wih a resouion of he Board of Direcors on 28 Apri 2010.

 p 2009

191

PROPERTIES OF THE GROUP Top - 10 Based on the Highest Net Book Value

Address

Desription

Date of

Net Book

Aquisition/

Value as at

Land Area

Existing

Tenure

Revaluation,

31 Deember

(Hetare)

Use

(years)

if any

2009 (RM’000)

KELANTAN LADANG SERASA SDN BHD Ladang Serasa and Ladang Sg. Bayu Lot No. PT 862

Oil palm

Mukim o Relai

plantation

85,695 4.317

Plantation

Leasehold or 99 years

District o Chiku

expires on

Kelantan

7 August 2098

Lot No. PT 629

Oil palm

Mukim o Kuala Sungai

plantation

1996

815

Plantation

Leasehold or

1996

99 years

District o Bertam

expires on

Kelantan

7 August 2098

LADANG SUNGAI RELAI SDN BHD Ladang Relai

98,532

GM 53/99 PT 3294

Oil palm

Mukim Relai

plantation

6.02

Plantation


Daerah Gua Musang

expires on 29

Kelantan

November 2064

GM 53/99 PT 3295

Oil palm

Mukim Relai

plantation

12.41

Plantation

Leasehold or expires on 29

Kelantan

November 2064 Oil palm

Mukim Relai

plantation

7.57

Plantation


Kelantan


Mukim Relai

plantation

170.12

Plantation


Kelantan


Mukim Relai

plantation

288.4

Plantation


Daerah Gua Musang

expires on 29

Kelantan

November 2064

192

2006

66 years

Daerah Gua Musang

GM 53/99 PT 3298

2006

66 years

Daerah Gua Musang

GM 53/99 PT 3297

2006

66 years

Daerah Gua Musang

GM 53/99 PT 3296

2006


2006

Date of

Net Book

Aquisition/

Value as at

Land Area

Existing

Tenure

Revaluation,

31 Deember 2009 (RM’000)

Address

Desription

(Hetare)

Use

(years)

if any

GM 53/99 PT 3299

Oil palm

4,681.1

Plantation

Leasehold or

2006

Mukim Relai

plantation

66 years

Daerah Gua Musang

expires on 29

Kelantan

November 2064

PT 3252 HS(D) 432

Oil palm

Mukim Relai

plantation

1,067

Plantation


Daerah Gua Musang

expires on 29

Kelantan

November 2064

PT 3254 HS(D) 432

Oil palm

Mukim Relai

plantation

2,023

Plantation


Kelantan


Mukim Relai

plantation

224.3

Plantation


Kelantan


Mukim Relai

plantation

2006

66 years

Daerah Gua Musang

PT 6632 HS(D) 432

2006

66 years

Daerah Gua Musang

PT 3255 HS(D) 432

2006

77.96

Plantation

Leasehold or

2006

66 years

Daerah Gua Musang

expires on 29

Kelantan

November 2064

JOHORE LADANG PETRI TENGGARA SDN BHD Ladang Ulu Sebol

95,716

PTD 4428 HS(D) 17845

Oil palm

Mukim Hulu Sg Johor

plantation

3,500.53

Plantation

Leasehold or

Daerah Kota Tinggi

expires on 26

Johor

August 2076

PTD 4444 HS(D) 17846

Oil palm

Mukim Hulu Sg Johor

plantation

2006

84 years

3,500.53

Plantation

Leasehold or

2006

84 years

Daerah Kota Tinggi

expires on 26

Johor

August 2076

annual report 2009

193


Address

Desription

Date of

Net Book

Aquisition/

Value as at

Land Area

Existing

Tenure

Revaluation,

31 Deember

(Hetare)

Use

(years)

if any

2009 (RM’000)

SARAWAK BAHTERA BAHAGIA SDN BHD Ladang Sungai Klad and Sungai Sibuti Lot 1 Block 11

Oil palm

Bukit Kisi Land District

plantation

73,314 3,097

Plantation

Leasehold or

1996

60 years

Miri Sarawak

expires on 9 June 2047

Lot 2 Block 11

Oil palm

Bukit Kisi Land District

plantation

1,172

Plantation

Leasehold or

1996

60 years

Miri Sarawak

expires on 25 April 2055

KUMPULAN KRIS JATI SDN BHD Ladang Simunjan and Ladang Ladong Lot 737 Sebangan -

Oil palm

Kepayang Land District

plantation

110,557 187

Plantation


Samarahan

expires on 3

Sarawak

February 2060

Lot 738 and 739

Oil palm

Sebangan - Kepayang

plantation

2,744

Plantation

Leasehold or expires on

Samarahan, Sarawak

23 July 2060 Oil palm

Sedilu - Gedung

plantation

2000

60 years

Land District

Lot 1223

2000

2,187

Plantation

Leasehold or

2000

60 years

Land District

expires on

Samarahan, Sarawak

23 July 2060

Ladang Trusan and Ladang Intan Lot 490 and 492

Oil palm

Trusan Land District

plantation

73,593 6,140

Plantation

Leasehold or

Limbang Division

expires on

Sarawak

7 August 2056

Lot 493

Oil palm

Trusan Land District

plantation

446

Plantation


Limbang Division

expires on

Sarawak

30 March 2057

194

1996

60 years


1997

Address

Desription

Date of

Net Book

Aquisition/

Value as at

Land Area

Existing

Tenure

Revaluation,

31 Deember

(Hetare)

Use

(years)

if any

2009 (RM’000)

MELUR GEMILANG SDN BHD Ladang Gemilang, Ladang Melur and Ladang Sg. Krang Lot 1224, Sedilu

Oil palm

Gedong Land District

plantation

8,273

212,699 Plantation

Leasehold or

2000

60 years

and Lot 2978

expires on 16

Melikin Land District

February 2060

Samarahan, Sarawak Lot 2982 & 2983,

Oil palm

Melikin Land District

plantation

7,320

Plantation

Leasehold or

2000

60 years

Lot 1225, Sedilu -

expires on

Gedong Land District

22 April 2062

and Lot 33 & 34 Punda-Sabal Land District Samarahan, Sarawak RETUS PLANTATION SDN BHD Ladang Retus and Ladang Rantau Lot No. 3544 Block O

Oil palm

Pasai-Siong Land

plantation

164,667 4,020

Plantation

Leasehold or

District

expires on 24

Sibu, Sarawak

February 2059

Lot No. 3544 Block O

Palm oil

Pasai- Siong Land

mill

1999

60 years

Mill

Leasehold or

1999

60 years

District

expires on 24

Sibu, Sarawak

February 2059

AMALAN PELITA PASAI SDN BHD Ladang Pelitanah

83,102

Lot 16, Block O

Oil palm

Oya-Dalat Land District

plantation

13,980

Plantation

Leasehold or

2001

60 years

Sibu, Sarawak

expires on 5 February 2061

annual report 2009

195


Address

Desription

Date of

Net Book

Aquisition/

Value as at

Land Area

Existing

Tenure

Revaluation,

31 Deember

(Hetare)

Use

(years)

if any

2009 (RM’000)

TRADEWINDS cORRIDOR SDN BHD Ladang Sg. Tekai, Ladang Sg. Seraya, Ladang Tanah Merah and Ladang Batu Hitam

287,564

HS(D) 1/87 and 2/87 PT No. 245 and 246 Mukim Padang Terap Kiri District o Padang Terap, Kedah

Oil palm and rubber plantation

1,328.87

Plantation

Leasehold or 60 years expires on 26 November 2055

2008

HS(D) 5/92 to 9/92 PT No. 334 to 338 Mukim Padang Terap Kiri District o Padang Terap, Kedah


354.89

Plantation


2008

HS(D) 235 to 237 PT No. 692 to 694 Mukim Padang Terap Kiri District o Padang Terap, Kedah


661.44

Plantation


2008

HS(D) 253, PT No. 1286 Mukim Padang Terap Kiri District o Padang Terap, Kedah


140.11

Plantation


2008

HS(D) 249 to 250 PT No. 776 to 777 Mukim Padang Terap Kanan District o Padang Terap, Kedah


35.79

Plantation


2008

HS(D) 1/92 to 2/92 PT No. 229 to 230 Mukim Padang Terap Kanan District o Padang Terap, Kedah


817.68

Plantation


2008

HS(D) 10/92 to 14/92 PT No. 351 to 355 Mukim Batang Tunggang Kiri District o Padang Terap, Kedah


1,402.88

Plantation


2008

196


Date of

Net Book

Aquisition/

Value as at

Land Area

Existing

Tenure

Revaluation,

31 Deember

(years)

if any

2009 (RM’000)

Address

Desription

(Hetare)

Use

HS(D) 4 to 7

Oil palm

792.65

Plantation

PT No. 379 to 382

and rubber

60 years expires

Mukim Batang

plantation

on 26

Tunggang Kiri

Leasehold or

2008

November 2055

District o Padang Terap, Kedah HS(D) 238 to 244

Oil palm

PT No. 695 to 701

and rubber

60 years expires

Mukim Batang

plantation

on 26

116.06

Plantation

Tunggang Kiri

Leasehold or

2008

November 2055

District o Padang Terap, Kedah 19.74

HS(D) 253 to 260

Oil palm

Plantation

PT No. 421 to 428

and rubber

60 years expires

Mukim Batang

plantation

on 26

Tunggang Kiri

Leasehold or

2008

November 2055

District o Padang Terap, Kedah 79.17

HS(D) 252, PT No. 879

Oil palm

Mukim Batang

and rubber

Plantation

60 years expires

Tunggang Kiri

plantation

on 26

District o Padang

Leasehold or

2008

November 2063

Terap, Kedah HS(D) 2 and 3 1,327.48

PT No. 136 and 152

Oil palm

Plantation

Mukim Batang

and rubber

60 years expires

Tunggang Kanan

plantation

on 26


Leasehold or

2008

November 2055

Terap, Kedah 197.26

HS(D) 15/92,

Oil palm

Plantation

PT No. 1468 Mukim

and rubber

60 years expires

Pedu

plantation

on 26


Leasehold or

2008

November 2055

Terap, Kedah 1,633.54

HS(D) 16/92 to 18/92

Oil palm

PT No. 1476 to 1478

and rubber

60 years expires

Mukim Pedu

plantation

on 26

Plantation


Leasehold or

2008

November 2055

Terap, Kedah

annual report 2009

197


Date of

Net Book

Aquisition/

Value as at

Land Area

Existing

Tenure

Revaluation,

31 Deember

(years)

if any

2009 (RM’000)

Address

Desription

(Hetare)

Use

HS(D) 1, PT No. 1569

Oil palm

187.84

Plantation

Mukim Pedu

and rubber

60 years expires


plantation

on 26

Terap, Kedah

Leasehold or

2008

November 2055

HS(D) 19/92,

Oil palm

PT No. 4479 Mukim

and rubber

1,447.69

Plantation

60 years expires

Tekai

plantation

on 26


Leasehold or

2008

November 2055

Terap, Kedah HS(D) 1/89,

Oil palm

48.78

Plantation

PT No. 4278 Mukim

and rubber

60 years expires

Tekai

plantation

on 26


Leasehold or

2008

November 2055


Oil palm

3.14

Plantation

PT No. 4279 Mukim

and rubber

60 years expires

Tekai

plantation

on 26


Leasehold or

2008

November 2055


Oil palm

PT No. 2333 Mukim

and rubber

60 years expires

Bukit Lada

plantation

on 26

249.39

Plantation


Leasehold or

2008

November 2055

Terap, Kedah HS(D) 389, PT No. 805

Oil palm

Mukim Kuala Nerang

and rubber

60 years expires


plantation

on 26

7.99

Plantation

Terap, Kedah

Leasehold or

2008

November 2055

HS(D) 2158,

Oil palm

PT No. 363 Mukim

and rubber

60 years expires

Bandar Pokok Sena

plantation

on 26

634.81

Plantation


Leasehold or

2008

November 2055

Terap, Kedah HS(D) 251,

Oil palm

PT No. 1705 Mukim

and rubber

60 years expires

Tolak

plantation

on 26


8.38

Plantation

Leasehold or

November 2063

Terap, Kedah

198


2008

SHAREHOLDING STATISTICS as at 30 April 2010

Authorised Capital Issued and Paid-up Capital Class o Shares Voting Rights No. o Shareholders

: : : : :

RM500,000,000 RM296,470,484 Ordinary Shares o RM1.00 each One vote or each ordinary share 6,632

ANALYSIS BY SIZE OF SHAREHOLDING

SIZE OF HOLDINGS Less than 100

NO. OF SHAREHOLDERS

% OF SHAREHOLDERS

NO. OF SHARES

% OF SHAREHOLDINGS

368

5.55

10,944

0.00

100

– 1,000

2,528

38.12

1,568,885

0.53

1,001

– 10,000

3,126

47.13

11,134,056

3.76

10,001

– 100,000

532

8.02

15,122,980

5.10

75

1.13

94,020,859

31.71

3

0.05

174,612,760

58.90

6,632

100.00

296,470,484

100.00

NO. OF SHAREHOLDERS

% OF SHAREHOLDERS

NO. OF SHARES

% OF SHAREHOLDINGS

6

0.09

187,795

0.06

282

4.25

1,603,932

0.54

34

0.51

203,846,125

68.76

282

4.25

22,441,490

7.57

5,397

81.38

27,295,188

9.21

b) Companies

175

2.64

13,374,867

4.51

c) Nominees Company

265

4.00

3,437,171

1.16

6,441

97.12

272,186,568

91.81

a) Individual

85

1.28

804,606

0.27

b) Companies

13

0.20

6,437,400

2.17

c) Nominees Company

93

1.40

17,041,910

5.75

191

2.88

24,283,916

8.19

6,632

100.00

296,470,484

100.00

100,001 to less than 5% o issued shares 5% and above o issued shares

TOTAL

BREAKDOWN OF SHAREHOLDINGS

SIZE OF HOLDINGS 1. Government Agencies/Institutions 2. Bumiputra a) Individual b) Companies c) Nominees Company 3. Non-Bumiputra a) Individual

MALAYSIAN TOTAL 4. Foreign

FOREIGN TOTAL GRAND TOTAL

annual report 2009

199

ADDITIONAL INFORMATION ON SHAREHOLDERS as at 30 April 2010

SUBSTANTIAL SHAREHOLDERS DIREcT NO.

SHAREHOLDERS

1.

INDIREcT

NO. OF SHARES

%

NO. OF SHARES

%

Perspective Lane (M) Sdn Bhd

89,048,663

30.04

—

—

2.

Felda Global Ventures Holdings Sdn Bhd

59,294,097

20.00

—

—

3.

Kelana Ventures Sdn Bhd

26,270,000

8.86

—

—

89,048,663

30.04

127,388,663

42.97

4.

Restu Jernih Sdn Bhd

5.

Tan Sri Dato’ Seri Syed Mokhtar Shah bin Syed Nor

(1)

(2)

—

—

—

—

(1)

(2)

Deemed interested by virtue o its interest in Perspective Lane (M) Sdn Bhd pursuant to Section 6A o the Companies Act, 1965 Deemed interested by virtue o his interest in Kelana Ventures Sdn Bhd, Seaport Terminal (Johore) Sdn Bhd and Restu Jernih Sdn Bhd pursuant to Section 6A o the Companies Act, 1965. Seaport Terminal (Johore) Sdn Bhd holds 12,070,000 (4.07%) shares in Tradewinds (M) Berhad.

TOP THIRTY SHAREHOLDERS NO.

SHAREHOLDERS

SHAREHOLDINGS

%

1

PERSPECTIVE LANE (M) SDN BHD

89,048,663

30.04

2

FELDA GLOBAL VENTURES HOLDINGS SDN BHD

59,294,097

20.00

3

KELANA VENTURES SDN BHD

26,270,000

8.86

4

SEAPORT TERMINAL (JOHORE) SDN BHD

12,070,000

4.07

9,457,800

3.19

9,126,200

3.08

5

MAYBAN NOMINEES (TEMPATAN) SDN BHD MAYBAN TRUSTEES BERHAD FOR PUBLIC ITTIKAL FUND (N14011970240)

6

MAYBAN NOMINEES (TEMPATAN) SDN BHD MAYBAN TRUSTEES BERHAD FOR PUBLIC REGULAR SAVINGS FUND (N14011940100)

7

ACARA KREATIF SDN BHD

6,390,000

2.16

8

DALEX INVESTMENTS LIMITED

6,175,800

2.08

9

JOHAN ENTERPRISE SDN BHD

4,017,240

1.36

10

GRENFELL HOLDINGS SDN BHD

3,310,402

1.12

CARTABAN NOMINEES (ASING) SDN BHD

3,297,500

1.11

2,898,200

0.98

11

SSBT FUND C7KQ MFS EMERGING MARKETS PORTFOLIO (MET INVEST)

12

AMANAHRAYA TRUSTEES BERHAD PUBLIC ISLAMIC DIVIDEND FUND

200


TOP THIRTY SHAREHOLDERS NO.

SHAREHOLDERS

13 14

SHAREHOLDINGS

%

YEOH KEAN HUA

2,735,190

0.92

CARTABAN NOMINEES (ASING) SDN BHD

2,318,000

0.78

2,182,900

0.74

VALUECAP SDN BHD

2,182,600

0.74

HDM NOMINEES (ASING) SDN BHD

2,080,200

0.70

2,009,700

0.68

GOH PHAIK LYNN

2,000,000

0.67

HSBC NOMINEES (ASING) SDN BHD

1,915,360

0.65

1,555,900

0.52

TALOH SDN BHD

1,493,750

0.50

MAYBAN NOMINEES (TEMPATAN) SDN BHD

1,228,000

0.41

1,199,900

0.40

1,157,186

0.39

LEONG LAI SHEN

908,100

0.31

CITIGROUP NOMINEES (ASING) SDN BHD

879,400

0.30

HEXARICH SDN BHD

679,000

0.23

PM NOMINEES (TEMPATAN) SDN BHD

540,000

0.18

437,600

0.15

258,858,688

87.31

SSBT FUND 528O MFS EMERGING MARKETS EQUITY FUND

15

AMANAHRAYA TRUSTEES BERHAD PUBLIC ISLAMIC SECTOR SELECT FUND

16 17

UOB KAY HIAN PTE LTD FOR ZENITH SECURITIES PTE LTD

18

HDM NOMINEES (ASING) SDN BHD EXEMPT AN FOR UOB KAY HIAN (HONG KONG) LIMITED (CLIENTS)

19 20

EXEMPT AN FOR HSBC PRIVATE BANK (SUISSE) S.A. (SPORE TST ACCL)

21

AMANAHRAYA TRUSTEES BERHAD PUBLIC ISLAMIC SELECT TREASURES FUND

22 23

MAYBAN TRUSTEES BERHAD FOR PB ASEAN DIVIDEND FUND (270334)

24

AMANAHRAYA TRUSTEES BERHAD PUBLIC SECTOR SELECT FUND

25

AFFIN NOMINEES (TEMPATAN) SDN BHD PLEDGED SECURITIES ACCOUNT FOR MOGEMS SDN BHD

26 27

CBNY FOR DIMENSIONAL EMERGINGS MARKETS VALUE FUND

28 29

PCB ASSET MANAGEMENT SDN BHD FOR MUI CONTINENTAL INSURANCE BERHAD

30

CARTABAN NOMINEES (ASING) SDN BHD SSBT FUND 52F4 FOR MFS EMERGING MARKETS EQUITY PORTFOLIO (VAR INS TST II)

TOTAL

annual report 2009

201

ADDITIONAL INFORMATION ON SHAREHOLDERS as at 30 April 2010

INFORMATION ON DIREcTORS’ SHAREHOLDING AS AT 30 APRIL 2010 NO.

1

DIREcTORS

DIREcT

DATO’ WIRA SYED ABDUL JABBAR

INDIREcT

NO. OF SHARES

%

NO. OF SHARES

%

20,000

0.01

—

—

—

—

127,388,663

20,000

0.01

127,388,663

BIN SYED HASSAN 2

SYED AZMIN BIN SYED NOR

TOTAL

(1)

(1)

42.97

42.97

Deemed Interested pursuant to section 6A o the Act by virtue o his amily relationship with a major shareholder o the Company.

202


DIRECTORY OF GROUP’S OPERATIONS

central Sugars Refinery Sdn Bhd P. O Box 7213 Batu Tiga, Shah Alam Selangor Darul Ehsan Tel : 603 - 5519 1414 Fax : 603 - 5519 8792 Gula Padang Terap Sdn Bhd 45KM, Jalan Padang Senai 06300 Kuala Nerang Kedah Darul Aman Tel : 604 - 790 4235 Fax : 604 - 786 4242 Tradewinds cambodia co Ltd Tradewinds Reality co Ltd. Delta Delights (cambodia) co Ltd. c/o Level 12, Menara HLA No. 3, Jalan Kia Peng 50450 Kuala Lumpur Tel : 603 - 2179 7777 Fax : 603 - 2179 7730 croesus Limited 31/ F, Gloucester Tower The Landmark 11, Pedder Street Central Hong Kong SAR Tel : 852 - 2810 6818 Fax : 852 - 2526 7572 HBT Realty co. Ltd 55, Le Dai Hanh Street Hanoi, Vietnam Tel : 844 - 976 1219 Fax : 844 - 976 1219 Tradewinds Plantation Berhad Level 9, Menara HLA No. 3, Jalan Kia Peng 50450 Kuala Lumpur Tel : 603 - 2179 9999 Fax : 603 - 2161 1701 Tradewinds Plantation Management Sdn Bhd Level 9, Menara HLA No. 3, Jalan Kia Peng 50450 Kuala Lumpur Tel : 603 - 2179 9999 Fax : 603 - 2161 1701

Tradewinds Plantation Aademy No. 27, 1st Floor Lorong Endah Timur 3 Jalan Teku, 96000 Sibu Sarawak Tel : 6084 - 319 248, 318 248 Fax : 6084 - 317 248 Tradewinds Researh & Development centre No. 29, Ground Floor Lorong Endah Timur 3 Jalan Teku, 96000 Sibu Sarawak Tel : 6084 - 346 213, 322 213 Fax : 6084 - 349 281

NORTHERN PENINSULAR REGION: KEDAH PROJEcT Ladang Batu Hitam Ladang Sungai Seraya Ladang Tanah Merah Ladang Sungai Tekai KM 45, Jalan Padang Sanai 06300 Kuala Nerang Kedah Tel : 604 - 7904 113 (Batu Hitam) 604 - 7904 136 (Sg. Seraya) 604 - 7904 135 (Tanah Merah) 604 - 7904 136 (Sg. Tekai) Fax : 604 - 7864 854 (Batu Hitam, Sg. Seraya, Tanah Merah & Sg. Tekai) Regional Offie 1st Floor, Lot No. PT 7817 Taman Mesra Bandar Gua Musang 18300 Gua Musang Kelantan Tel : 609 - 912 1273 Fax : 609 - 913 1373 Ladang Sungai Relai (North) Ladang Sungai Relai (South) Ladang Sungai Relai (East) No.13, Bangunan JKKR Felda Chiku 3 18300 Gua Musang Kelantan Tel : 609 - 928 7973 Fax : 609 - 928 7944

annual report 2009

Ladang Serasa Ladang Sg Bayu Serasa Palm Oil Mill Sg Bayu Gua Musang P.O. Box 12 18000 Kuala Krai Kelantan Tel : 019 - 959 1810 (Serasa) 019 - 983 0256 (Sg. Bayu) 609 - 928 6603 (Serasa POM) Fax : 019 - 953 5520 (Serasa) 019 - 984 0256 (Sg. Bayu) 019 - 983 0674 (Serasa POM) Ladang Mawar Ladang Sri Angkasa Ladang chendana P.O. Box 40 24000 Kemaman Terengganu Tel : 609 - 867 5612 Fax : 609 - 867 5613 Ladang Sawit cherul Ladang Ibok Ladang Perkasa P.O. Box 40 24000 Kemaman Terengganu Tel : 609 - 867 5551 Fax : 609 - 867 5552 Ladang Bukit Sah Peti Surat 36 26100 Balok Kuantan Pahang Tel : 609 - 551 0460 Fax : 609 - 514 0498

SOUTHERN PENINSULAR REGION: Regional Offie/ Animal Husbandary & cultivation Unit Komplek Sisek KM 20 Lebuhraya Kota Tinggi-Kluang 81900 Kota Tinggi Johor Tel : 607 - 890 4584/585 (Regional Oice) 607 - 882 0036 (Animal Unit) Fax : 607 - 890 4581 (Regional Oice) 607 - 882 0036 (Animal Unit)

203

DIRECTORY OF GROUP’S OPERATIONS

Ladang Jaya Peti Surat 22 Bandar Seri Perani 81900 Kota Tinggi Johor Tel : 607 - 891 1158 Fax : 607 - 891 1792, 896 1260 Ladang Ulu Papan Peti Surat 66 Bandar Mas 81900 Kota Tinggi Johor Tel : 607 - 823 6070 Fax : 607 - 823 5660 Ladang Sg. Kahur Ladang Sg Lebak Ladang Semai Segar Peti Surat 8 Bandar Petri Jaya 81900 Kota Tinggi Johor Tel : 607 - 890 4118 (Sg. Kachur) 607 - 890 4804 (Sg Lebak) 607 - 890 4118 (Semai Segar) Fax : 607 - 890 4044 (Sg. Kachur) 607 - 890 4804 (Sg. Lebak) 607 - 890 4144 (Semai Segar) Sg Kahur Palm Oil Mill Peti Surat 48 KM 27 Jalan Kota Tinggi-Kluang 81907 Kota Tinggi Johor Tel : 607 - 890 5810, 390 5052 Fax : 607 - 890 4887 Ladang Penawar Peti Surat 10 Bandar Penawar 81900 Kota Tinggi Johor Tel : 607 - 822 8291 Fax : 607 - 822 8253 Ladang Sisek Peti Surat 16 81907 Kota Tinggi Johor Tel : 607 - 883 2220 Fax : 607 - 883 2220

204

Animal Husbandary & cultivation Unit Komplek JTOP KM 20 Lebuhraya Kota Tinggi-Kluang 81900 Kota Tinggi Johor Tel : 607 - 889 4585 Fax : 607 - 889 2553 Ladang Air Manis KM 51, JB-Air Hitam Road P.O. Box 110 81000 Kulai Johor Tel : 607 - 656 1246 Fax : 607 - 656 1685 Ladang Ulu Sebol A Peti Surat 26 Bandar Tenggara 81000 Kulai, Johor Tel : 607 - 896 1304 Fax : 607 - 896 1260 Ladang Ulu Sebol B Peti Surat 25 Bandar Tenggara 81000 Kulai, Johor Tel : 607 - 896 1235 Fax : 607 - 896 1260 Ulu Sebol Palm Oil Mill Karung Berkunci 201 Bandar Tenggara 81000 Kulai, Johor Tel : 607 - 896 1211 Fax : 607 - 896 1263 Ladang Agromaju Peti Surat 8 Bandar Tenggara 81000 Kulai, Johor Tel : 607 - 896 5451 Fax : 607 - 896 5451 Ladang Pakloh Batu 11 1⁄2 Jalan Mersing Karung Berkunci 516 86009 Kluang, Johor Tel : 607 - 774 6255 Fax : 607 - 774 6733


Ladang New Paloh P.O. Box 109 86609 Kluang, Johor Tel : 607 - 781 6776 Fax : 607 - 781 6776 Ladang Pelangi Ladang Sembrong Kiri Peti Surat 15 86700 Kahang Kluang, Johor Tel : 607 - 780 0064 Fax : 607 - 780 0068 KUcHING REGION: Regional Offie/ EMOc Level 23 Gateway Kuching No.9 Jalan Bukit Mata 93100 Kuching, Sarawak Tel : 6082 - 412 909, 413 909 Fax : 6082 - 248 909 Ladang Gemilang Ladang Melur P.O. Box 935 94700 Serian, Sarawak Tel : 6082 - 895 969 (Gemilang) 6082 - 895 531 (Melur) Fax : 6082 - 895 969, 895 531 (Gemilang/Melur) Ladang Sg Krang P.O. Box 1010 94700 Serian. Sarawak Ladang Sg Mangga Ladang Tg Melano P.O. Box 931 94700 Serian, Sarawak Tel : 6082 - 895 193 (Sg Krang) 6082 - 895 182 (Sg Mangga) 6082 - 895 405 (Tg Melano) Fax : 6082 - 895 969, 895 531 (Sg Krang, Sg. Mangga & Tg. Melano) Melur Gemilang Palm Oil Mill P.O. Box 952 94700 Serian, Sarawak Tel : 6082 - 896 182 Fax : 6082 - 896 182

Ladang Simunjan Ladang Ladong P.O. Box 24 94800 Simunjan, Sarawak Tel : 6082 - 809 089 Fax : 6082 - 809 113 Ladang Sg. Tersak P.O. Box 931 94700 Serian, Sarawak Tel : 6082 - 895 624 Fax : 6082 - 895 627

SIBU REGION: Regional Offie No.55, 1st Floor Lorong 12-C Pusat Suria Permata Jalan Upper Lanang 96000 Sibu, Sarawak Tel : 6084 - 216 166 Fax : 6084 - 219 455 Ladang Lingga Km 11.5, O Jalan Tanjung Asam P.O. Box 2014 95700 Betong, Sarawak Tel : 019 - 858 9578 Fax : 019 - 859 4086 Ladang Tanjung Alan Matu-Daro Road c/o Post Oice 96200 Daro, Sarawak Tel : 6084 - 813 002 Fax : 6084 - 813 004

Ladang Pelitanah 1 Ladang Pelitanah 2 CDT 174 96000 Sibu, Sarawak Tel : 6084 - 366 957 (Pelitanah 1 & 2) Fax : 6084 - 366 782 (Pelitanah 1 & 2)

Ladang Binu Ladang Jelai Binu Palm Oil Mill P.O. Box 1374 98008 Miri, Sarawak Tel : 6085 - 710 308 (Binu) 6085 - 710 797 (Jelai) 6085 - 739 226, 228 (Binu Palm Oil Mill) Fax : 6085 - 710 217 (Binu & Jelai) 6085 - 739 287 (Binu POM) Ladang Kuala Suai Ladang Tg Payung Ladang Mutiara P.O. Box 166 Pejabat Pos Mini Batu Niah Batu Niah Bazaar 98200 Miri, Sarawak Tel : 6085 - 739 257 (K.Suai) 6085 - 739 008 (Tg. Payung) 019 - 8554 200 (Mutiara) Fax : 6085 - 739 257 (K. Suai) 019 - 8140 910 (Tg. Payung) 019 - 8340 182 (Mutiara) Ladang Sg Klad Ladang Sibuti P.O. Box 2179 98009 Miri, Sarawak Tel : 6085 - 739 901 6085 - 491 998 Fax : 6085 - 495 102 6085 - 491 998

(Sg. Klad) (Sibuti) (Sg Klad) (Sibuti)

Ladang Judan Ladang Petian Judan Palm Oil Mill P.O. Box 197, 96400 Mukah, Sarawak Tel : 084 - 875 413 (Judan) 875 432 (Petian) 875 792 (Judan Palm Oil Mill) Fax : 084 - 862 813 (Judan & Petian) 875 022 (Judan Palm Oil Mill)

MIRI REGION: Regional Offie 2nd Floor, Lot 1178 MCLD Miri Waterront Jalan Permaisuri 98000 Miri, Sarawak Tel : 6085 - 431 227 Fax : 6085 - 429 227

SABAH/LAWAS REGION: Regional Offie 1st Floor, Lot 26 MDLD 3291 Fajar Centre, 91100 Lahad Datu Sabah Tel : 089 - 881 051, 052 Fax : 6089 - 881 053

annual report 2009

Ladang Permai Ladang Tengah Nipah Permai Palm Oil Mill P.O. Box 60834 91108 Lahad Datu, Sabah Tel : 6089 - 887 063/64 (Permai & Tengah Nipah) 6089 - 886 011/012 (Permai Palm Oil Mill) Fax : 6089 - 887 063/064 (Permai & Tengah Nipah) 6089 - 886 011 (Permai Palm Oil Mill) Ladang Batu Putih Ladang Tinabau Batu Putih Palm Oil Mill WDT 125 90200 Kota Kinabatangan Sandakan, Sabah Tel : 6089 - 566 111(BatuPutih) 6089 - 566 114 (Tinabau) 6089 - 565 963, 563 288 (Batu Putih Palm Oil Mill) Fax : 6089 - 566 188 (Batu Putih) 6089 - 566 115 (Tinabau) 6089 - 677 178 (Batu Putih POM) Ladang Trusan Ladang Intan Trusan Palm Oil Mill KM 15, Jalan Trusan P.O. Box 292 98857 Lawas, Sarawak Tel : 6085 - 282 030 (Trusan) 019 - 854 6440 (Intan) 6085 - 282 788 (Trusan Palm Oil Mill) Fax : 6085 - 201 030 (Trusan) 019 - 815 3985 (Intan) 6085 - 282 788 (Trusan Palm Oil Mill) Ladang Merapok KM25, Jalan Merapok P.O. Box 444 98857 Lawas Sarawak Tel : 6085 - 282 062 Fax : 6085 - 282 062

205

FORM OF PROXY

I / We _____________________________________________________________________________________________________________________ (FULL NAME IN BLOCK LETTERS) o _________________________________________________________________________________________________________________________ (ADDRESS IN FULL) being a member/members o TRADEWINDS (M) BERHAD, hereby appoint ___________________________________________________________________________________________________________________________ (FULL NAME IN BLOCK LETTERS) o ________________________________________________________________________________________________________________________ (ADDRESS IN FULL) as my/our proxy ailing which the Chairman o the meeting* to vote or me/us and on my/our behal at the Thirty-Sixth Annual General Meeting o the Company to be held at Mahkota Ballroom 2, Ballroom Level, Hotel Istana Kuala Lumpur, 73, Jalan Raja Chulan, 50200 Kuala Lumpur on Tuesday, 22 June 2010 at 10.30 a.m. My/Our Proxy is to vote as indicated below:-

Resolution

1

2

3

4

5

6

7

8

9

10

11

12

For Against (Please indicate with an “X” in the appropriate spaces provided above as to how you wish your votes to be cast. I you do not do so, the proxy will vote or abstain rom voting at his/her discretion)

Dated this __________________ day o __________________ 2010

No. o shares held: ___________________________________________________________ Signature o Member(s)/Seal o Shareholder(s)

* Delete the words “The Chairman o the meeting” i you wish to appoint some other person to be your proxy.

Notes 1.

A member o the Company entitled to attend and vote at the meeting is entitled to appoint any one person to be his/her proxy without limitation to attend and vote in his/her stead and the provisions o Section 149(1)(a) and (b) o the Companies Act, 1965 shall not apply to the Company. A proxy may but need not be a member o the Company.

2.

Where a member o the Company is an authorised nominee as defned under the Central Depositories Act, it may appoint one proxy in respect o each securities account it holds with ordinary shares o the Company standing to the credit o the said securities account.

3.

To be valid this Form o Proxy must be deposited with the Share Registrars, Symphony Share Registrars Sdn Bhd at Level 6, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor on or beore Sunday, 20 June 2010 at 10.30 a.m. being not less than orty-eight hours beore the time fxed or holding the meeting or at any adjournment thereo.

4.

In the case o a corporate member, the proxy appointed must be in accordance with the Memorandum and Articles o Association and the Form o Proxy should be given under its common seal or under the hand o its attorney.

5.

Unless voting instructions are indicated in the spaces provided above, the proxy may vote as he/she thinks ft.

annual report

Recommend Documents