Professional Documents
Culture Documents
Corporate Vision
To create a business organisation that combines a high-trust culture which enables Ingress to develop meaningful partnerships, both inside and outside the organisation - with entrepreneurial and professional attributes. Creating meaning in life and bringing harmony to its surroundings is the embodiment of the Ingress vision.
CONTENTS
Notice of Annual General Meeting Statement Accompanying Notice of Annual General Meeting Corporate Information Corporate Ofce & Subsidiaries Financial Highlights Statement of Corporate Governance Group Structure Calendar of Signicant Events Chairmans Statement / Perutusan Pengerusi Board of Directors / Lembaga Pengarah Prole of Directors / Prol Pengarah-Pengarah Statement of Directors Responsibility for Preparing the Financial Statements Audit Committee Audit Committee Report Statement of Internal Control Additional Compliance Information Corporate Social Responsibility Our Products & Services Certication Audited Financial Statements Analysis of Shareholding - Analysis of Equity Structure - Directors Interest in Shares - Substantial Shareholders - Name of Top 30 Shareholders List of Properties Proxy Form
PAGE
2 3 4-5 6-7 8-9 10 - 16 17 18 19 - 33 34 - 35 36 - 43 44 45 46 - 48 49 - 50 51 - 52 53 54 - 61 62 63 - 156
I n g r e s s C o r p o r a tio n Be r h a d
AGENDA 1. To receive, consider and adopt the Audited Financial Statements for the nancial year ended 31 January 2011 together with the Report of the Directors and Auditors thereon. To approve the directors fees for the nancial year ended 31 January 2011. To re-elect Dato Vaseehar Hassan bin Abdul Razack, a director retiring pursuant to Article 103 of the Companys Articles of Association. To re-elect Abdul Rahim bin Haji Hitam, a director retiring pursuant to Article 103 of the Companys Articles of Association. To re-appoint Messrs Ernst & Young as Auditors of the Company for the ensuing nancial year and to authorise the directors to x their remuneration. AS SPECIAL BUSINESS To consider and, if thought t, to pass the following Ordinary Resolutions: PROPOSED AUTHORITY TO ALLOT SHARES PURSUANT TO SECTION 132D OF THE COMPANIES ACT, 1965 THAT pursuant to Section 132D of the Companies Act, 1965 the directors be and hereby authorised to allot and issue shares in the Company at any time and upon such terms and conditions and for such purposes as the directors may, in their absolute discretion, deem t provided that the aggregate number of shares issued pursuant to this resolution does not exceed 10% of the issued share capital of the Company as at the date of this Annual General Meeting and that the directors be and are also empowered to obtain the approval for the listing of quotation for the additional shares so issued on the Bursa Malaysia Securities Berhad and that such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company. 7. To transact any other business of the Company of which due notice has been received.
Resolution 1 Resolution 2
2. 3.
Resolution 3
4.
Resolution 4
5.
Resolution 5
6.
Resolution 6
Nolida binti Md Hashim (LS 007254) Company Secretary Selangor Darul Ehsan Date: 5 July 2011
Notes: 1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend and vote in his or her stead. A proxy may, but need not be a member of the Company. The instrument appointing a proxy shall be in writing under the hand of appointer or his or her attorney duly appointed under a power of attorney or if such appointer is a corporation either under its common seal or under the hand of an ofcer or attorney duly appointed under a power of attorney. Where a member appoints more than one proxy, the appointment is invalid unless the proportions of holdings represented to each proxy are specied. The instrument appointing a proxy must be deposited at the registered ofce of the Company, Lot 2778, 5th Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur at least forty-eight (48) hours before the time appointed for holding the meeting or any adjournment thereof. Registration of members/proxies attending the meeting will be from 9.00 a.m. on the day of the meeting. Members/proxies are required to produce their identication documents for registration. 6. Explanatory Notes for Resolution No. 6 The Proposed Resolution 6, if passed, will give the directors of the Company, from the date of the above Annual General Meeting (AGM), authority to allot and issue ordinary shares in the Company up to and not exceeding Ten Percent (10%) of the issued share capital of the Company for the time being, for such purposes as the directors consider would be in the interest of the Company. This authority, unless revoked or varied by the Shareholders of the Company in a general meeting, will expire at the conclusion of the next Annual General Meeting. As at the date of this notice, the Company has not issued any new shares under the general authority, which was approved at the 11th AGM held on 20 July 2010, and which will lapse at the conclusion of the 12th AGM. A renewal of this authority is being sought at the 12th AGM under the proposed Ordinary Resolution No. 6. The renewed mandate will provide exibility to the Company for any possible fund raising activities, including but not limited to further placing of shares, for purpose of funding future investment and/or for working capital purpose as the directors deem t and in the best interest of the Company.
2.
3.
4.
5.
Further details of the director who stand for re-election at the Twelfth Annual General Meeting are as set out on pages 39 and 43 which includes the details of any interest in the securities of the Company and its subsidiaries.
I n g r e s s C o r p o r a tio n Be r h a d
Corporate Information
BOARD OF DIRECTORS 1. Shamsudin @ Samad bin Kassim Chairman / Independent Non-Executive Director 2. Datuk Rameli bin Musa Executive Vice-Chairman / Non-Independent Executive Director 3. Dato Vaseehar Hassan bin Abdul Razack Independent Non-Executive Director 4. Dato Zulkiy @ Ibrahim bin Ab Rahman Independent Non-Executive Director 5. Abdul Khudus bin Mohd Naaim Independent Non-Executive Director 6. Ungku Farid bin Ungku Abd Rahman Non-Independent Executive Director 7. Abdul Rahim bin Haji Hitam Non-Independent Executive Director
BOARD COMMITTEES Audit Committee Chairman Abdul Khudus bin Mohd Naaim Members Dato Vaseehar Hassan bin Abdul Razack Shamsudin @ Samad bin Kassim Dato Zulkiy @ Ibrahim bin Ab Rahman Nomination Committee Chairman Dato Vaseehar Hassan bin Abdul Razack Members Shamsudin @ Samad bin Kassim Dato Zulkiy @ Ibrahim bin Ab Rahman Remuneration Committee Chairman Dato Vaseehar Hassan bin Abdul Razack Members Datuk Rameli bin Musa Shamsudin @ Samad bin Kassim Abdul Khudus bin Mohd Naaim
CORPORATE INFORMATION
OTHER INFORMATION Registered Ofce Lot 2778, 5th Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur. Fax: 603-7725 5560 Tel: 603-7725 5565 Company Secretary Nolida binti Md Hashim (LS 007254) Principal Bankers Malaysia Al-Rajhi Banking & Investment Corporation (Malaysia) Berhad AmIslamic Bank Berhad Bangkok Bank Berhad Bank Islam Malaysia Berhad Bank Muamalat Malaysia Berhad Bank Perusahaan Kecil & Sederhana Malaysia Berhad CIMB Bank Berhad Malayan Banking Berhad Maybank Islamic Berhad Maybank Investment Bank Berhad Thailand ACL Bank Public Company Limited Bangkok Bank Public Company Limited Kasikorn Bank Public Company Limited TMB Bank Public Company Limited United Overseas Bank (Thai) Public Company Limited Indonesia PT Bank Maybank Indocorp Stock Exchange Listing Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia) Auditors Ernst & Young (AF 0039) Chartered Accountants Level 23A, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur. Principal Solicitors Messrs Azmi & Associates Messrs Ainul Azam & Co. Share Registrar AAJ Registration Services Sdn Bhd (409111-V) Suite C-5-4, Wisma Goshen, Plaza Pantai, Jalan Pantai Baharu, 59200 Kuala Lumpur. Fax: 603-2287 7006 Tel: 603-2283 4007 Website http://www.ingresscorp.com.my E-Mail Address investordesk@ingresscorp.com.my
I n g r e s s C o r p o r a tio n Be r h a d
AUTOMOTIVE DIVISION
Nilai Plant PT 2475-2476, Kawasan Perindustrian Nilai, P.O. Box 45, 71807 Nilai, Negeri Sembilan Darul Khusus, Malaysia. Tel: 606-799 5599 Fax: 606-799 5597 / 8 E-mail: investordesk@ingresscorp.com.my Pengkalan Chepa Plant PT 2445-2447, Jalan Padang Tembak, Kawasan Perindustrian Pengkalan Chepa 2, 16100 Pengkalan Chepa, Kelantan Darul Naim, Malaysia. Tel: 609-774 2959 Fax: 609-773 7993 E-mail: investordesk@ingresscorp.com.my
600 Moo 4, Tambol Makhamkhu, King-Am-Pur Nikhompattana, Rayong 21180, Thailand. Tel: (66-38) 893746-8 / 917035-7 Fax: (66-38) 893 750
Jln. Industri Selatan 6A, Block GG-7A/B, Kawasan Industri Jababeka II, Cikarang Selatan, 17854 Bekasi, Indonesia. Tel: (62-21) 8983 4330 / 31 / 32 Fax: (62-21) 8983 4329 Email: ptimv@ingressmalindo.co.id
PT 2475-2476, Kawasan Perindustrian Nilai, P.O. Box 45, 71807 Nilai, Negeri Sembilan Darul Khusus, Malaysia. Tel: 606-799 5599 Fax: 606-799 5597 / 8 E-mail: investordesk@ingresscorp.com.my
Lot 9, Jalan P/7, Seksyen 13, Kawasan Perindustrian Bangi, P.O. Box 9, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, Malaysia. Tel: 603-8926 4806 / 07 / 08 / 09 / 10 Fax: 603-8926 2152 E-mail: tssb@ingresscorp.com.my
Lot 11, Jalan Jasmine 4, Kawasan Perindustrian Bukit Beruntung, 48300 Rawang, Selangor Darul Ehsan, Malaysia. Tel: 603-6028 3003 Fax: 603-6028 3001 / 4 E-mail: itsb@ingresscorp.com.my
Lot 2779, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, Malaysia. Tel: 603-7721 2288 Fax: 603-7721 2299 E-mail: info@ingressauto.com.my
Rayong Plant Eastern Seaboard Industrial Estate (Rayong) 64/6 Moo 4, Pluakdaeng Rayong 21140, Thailand. Tel: (66-38) 954942-5 Fax: (66-38) 954946 E-mail: iav@ingress.co.th Ayutthaya Plant Hi-Tech Industrial Estate (Ayutthaya) 64/6 Moo 1, Banlane Bangpa-in Ayutthaya, 13160, Thailand. Tel: (66-35) 314404-45 Fax: (66-35) 314410 E-mail: iav@ingress.co.th
Lot 9, Jalan P/7, Seksyen 13, Kawasan Perindustrian Bangi, P.O. Box 9, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, Malaysia. Tel: 603-8926 4806 / 07 / 08 / 10 Fax: 603-8925 4805 E-mail: investordesk@ingresscorp.com.my
Behrampur Road, Behind Haryana Roadways Workshop Nh-8 Jaipur Highway, Gurgaon 122001 Haryana, India. Tel / Fax: +911244033160 / 161
Corporate Ofce:Lot 2778, 5th Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, Malaysia. Tel: 603-7725 5565 Fax: 603-7725 5560 / 61 E-mail: investordesk@ingresscorp.com.my
Lot 2778, 4th Floor, Bangunan Ingress Auto, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, Malaysia. Tel: 603-7722 5767 Fax: 603-7722 5594 / 7725 5161 E-mail: multidiscovery@ingresscorp.com.my
Lot 1E, 1st Floor, Plaza Flamingo, No. 2, Tasik Ampang, Jalan Hulu Kelang, 68000 Ampang, Selangor Darul Ehsan, Malaysia. Tel: 603-4254 7366 Fax: 603-4252 4088 E-mail: info.my@bbrail.com
Lot 2778, 4th Floor, Bangunan Ingress Auto, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, Malaysia. Tel: 603-7722 5767 Fax: 603-7722 5594 / 7725 5161 E-mail: ramusa@ingresscorp.com.my
Lot 2778, 4B, 4th Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, Malaysia. Tel: 603-7722 3135 Fax: 603-7722 3136 E-mail: fabricators@ingresscorp.com.my
I n g r e s s C o r p o r a tio n Be r h a d
Financial Highlights
REVENUE (RM000) GROUP
761,177
AUTOMOTIVE
PEP
650,622
569,551
358,776
398,862
487,701
560,536
680,320
290,642
318,502
90,087
66,382
07
08
09
10
11
07
08
09
10
11
07
63,730
08
09
65,419
10
19,576
34,160
31,055
6,395
25,240
14,385
1,219
(20,983)
3,832
3,898
(2,434)
(14,191)
(42,434)
07
08
09
10
11
07
08
(28,222)
09
10
11
07
08
09
10
2007
2008
GROUP 2009
2010
Revenue Prot/(loss) before tax Prot/(loss) after tax and minority interest Total assets Shareholders equity Return on total assets Return on shareholders equity Basic earnings per share Dividend per share Dividend cover Net tangible assets per share
SHARE PRICE
FINANCIAL CALENDAR
Announcement of Results:First Quarter Second Quarter Third Quarter Fourth Quarter : : : : 22 June 2010 27 September 2010 21 December 2010 23 March 2011
(4,420) 11
80,857 11
2011
FINANCIAL HIGHLIGHTS
173,039
159,067
153,763
144,799
139,635
113,912
122,162
131,105
150,878
90,441
34,350
44,579
46,821 13,694
07
08
09
10
11
07
08
09
10
11
07
08
09
10
AUTOMOTIVE
PEP
633,338
634,718
660,701
593,237
536,325
570,601
500,071
483,707
505,428
100,342
112,032
95,196
90,100
07
08
09
10
11
07
08
09
10
11
07
08
09
10
2007
2010
2011
2007
2008
PEP 2009
2010
2011
2008
290,642 318,502 487,701 560,536 680,320 6,395 (20,983) (28,222) 25,240 34,160 (8,063) (16,672) (27,817) 25,612 32,083 500,071 483,707 536,325 570,601 505,428 139,635 122,162 90,441 131,105 150,878 4.5 19.5 6.3 21.3
87,809 11
2,912 11
2011
FINANCIAL CALENDAR
The Twelfth Annual General Meeting of the Company will be held as follows:Time 10.30 a.m. Venue Pacic Ballroom, Level 2, Seri Pacic Hotel Kuala Lumpur, Jalan Putra, 50746 Kuala Lumpur
5 July 2011
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I n g r e s s C o r p o r a tio n Be r h a d
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The agenda for each Board meeting and papers relating to the agenda items are disseminated to all directors at least ve (5) days before the meeting, in order to provide sufcient time for the directors to review the Board papers and seek clarications, if any. All proceedings from the Board meetings are minuted and signed by the Chairman of the meeting. Details of each directors meeting attendances are as follows:Meetings attended (out of 9) Directors Shamsudin @ Samad bin Kassim Datuk Rameli bin Musa Dato Vaseehar Hassan bin Abdul Razack Dato Zulkiy @ Ibrahim bin Ab Rahman Abdul Khudus bin Mohd Naaim Ungku Farid bin Ungku Abd Rahman Abdul Rahim bin Haji Hitam * Appointed on 1 April 2010 Board Committees The Board has delegated certain responsibilities to the following Board Committees, which operate within clearly dened terms of reference:Board Committees Nomination Committee Remuneration Committee Audit Committee Key functions Explained on page 13 of this Annual Report. Explained on page 14 of this Annual Report. Explained on pages 46 to 48 of this Annual Report. Chairman, Independent Non-Executive Director Executive Vice-Chairman, Non-Independent Executive Director Independent Executive Director Independent Non-Executive Director Independent Non-Executive Director Non-Independent Executive Director Non-Independent Executive Director Number of meetings attended 9/9
The Board periodically reviews the Committees terms of reference and operating procedures. The Committees are required to report to the Board on all their deliberations and recommendations and such reports are incorporated in the minutes of the Board meeting. Board balance The Board currently has seven (7) members, comprising one (1) Independent Non-Executive Chairman, three (3) Independent Non-Executive Directors and three (3) Non-Independent Executive Directors. A brief prole of each director is presented from pages 36 to 43 of this Annual Report. The concept of independence adopted by the Board is in line with the denition of an Independent Director in Section 1.01 of Listing Requirements and Practice Notes of Bursa Malaysia No. 13/2002. The key element for fullling the criteria is the appointment of an Independent Director who is not a member of management (a Non-Executive Director) and who is free of any relationship which could interfere in the exercise of independent judgment or the ability to act in the best interests of the Company. The Board complies with paragraph 15.02 of the Listing Requirements which requires that at least two directors or one-third of the Board of the Company, whichever is higher, are Independent Directors. To assist in the Boards deliberations, the Company has adopted a Policy on Directors Independence to be applied by the Company. The directors, with their differing backgrounds and specialisations, collectively bring with them a wide range of experience and expertise in areas such as nance, corporate affairs, marketing and operations. NonIndependent Executive Directors in particular are responsible for implementing the policies and decisions of the Board, overseeing the operations as well as co-ordinating the development and implementation of business and corporate strategies.
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I n g r e s s C o r p o r a tio n Be r h a d
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Appointments to the Board Nomination Committee The Nomination Committee comprises the following Independent Non-Executive Directors: Dato Vaseehar Hassan bin Abdul Razack (Chairman) Shamsudin @ Samad bin Kassim Dato Zulkiy @ Ibrahim bin Ab Rahman The Committee met once (1) during the nancial year. The Nomination Committee is of the opinion that the present composition of the Board contains the required mix of skills and experience. The Nomination Committee is empowered by the Board and its terms of reference to ensure there are appropriate procedures in place for the nomination, selection, training and evaluation of directors and that succession plans are in place. The Nomination Committee assesses the effectiveness of the Board as a whole, the Board Committees and contribution of each individual director, including the Independent NonExecutive Directors and the Executive Vice-Chairman on an annual basis. All assessments and evaluations carried out by the Nomination Committee in discharging its duties are documented in the minutes of meeting. The Board, through the Nomination Committees annual appraisal process, believes that the Board possesses the required mix of skills, experience and other qualities of the Board, including core competencies brought by Independent Non-Executive Directors to the Board which enables it to discharge its duties in an effective manner. Furthermore, the Board continuously reviews its size and composition with particular consideration on its impact on the effective functioning of the Board. The Board appoints its members through a formal and transparent selection process which is consistent with the Articles of Association of the Company. This process has been reviewed, approved and adopted by the Board. All new appointees will be considered and evaluated by the Nomination Committee for the candidates ability to discharge responsibilities as expected from them. The Committee will then recommend the candidates to be approved and appointed by the Board. The Company Secretary will ensure that all appointments are properly made and that legal and regulatory obligations are met. Directors training The Board, through the Nomination Committee, ensures a structured orientation and continuous education programme is in place for new and existing members of the Board. The programme includes, amongst others, briengs and updates on the organisational structure, salient matters covered under the Board Charter, key strategic, operational, nancial and compliance aspects of the Group, the Groups performance management system, a presentation by the Executive Vice-Chairman, informal discussions with members of the Board and scheduled site visits. This is geared towards ensuring that all directors are familiar with and are able to appreciate the Groups operating environment and business dynamics to enable them to contribute effectively during Boards deliberations. All directors have successfully completed the Mandatory Accreditation Programme under the auspicious of Bursa Malaysia. During the nancial year, the directors have pursued relevant courses and attended seminars to keep abreast with industry, regulatory and compliance issues, trends and best practices, including updates on the new FRSs. Seminars and training programmes attended by the directors for the nancial year are as follows:1. 2. 3. 4. 5. Mandatory Accreditation Programme for Directors of Public Listed Companies Makmal Pelan Induk Bumiputra Dalam Sektor Pembuatan Third Kuala Lumpur International Automotive Conference 2010 Ethics and Business - New Corporate Challenges and Opportunities Leadership and Self Deception at Work
The Company Secretary circulates guidelines on statutory and regulatory requirements periodically for the Boards reference which include brieng updates to the Board every quarter. The directors will continue to undergo other relevant training programmes to further enhance their skills and knowledge, as appropriate.
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I n g r e s s C o r p o r a tio n Be r h a d
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Executive Directors RM Salaries and other emoluments Fees/Allowances Bonus Benet-in-kind TOTAL C. Shareholders 1,748,913 24,000 153,726 21,600 1,948,239
The Company recognises the importance of being accountable to its investors and as such has maintained an active and constructive communication policy that enables the Board and management to communicate effectively with investors, stakeholders and the public generally. The Annual General Meeting and Extraordinary General Meeting are the principal forums for dialogue with private shareholders and institutional investors that allows the stakeholders to have a clear and complete picture of the Groups performance and position. These are crucial mechanisms in shareholder communication for the Company. It is the Companys practice to send the Notice of Annual General Meeting and related papers to shareholders at least twenty one (21) working days before the meeting date. The Annual General Meeting is generally well attended whilst shareholders have direct access to the Board and are given the opportunity to participate and vote on resolutions. Both private and institutional shareholders are invited to ask questions both about the resolutions being proposed or about the Groups operations in general. The Chairman of the Board addresses shareholders on the review of the Groups operations for the nancial year and outlines the prospects of the Group for the subsequent nancial year. Where it is not possible to provide immediate answers, the Chairman will undertake to furnish the shareholder with a written answer after the Annual General Meeting. A press conference is held immediately after the Annual General Meeting where the Chairman advises the press about the resolutions passed and answers questions relating the Group. The Executive Vice-Chairman and the Executive Director are also present at the press conference to clarify and explain any issue. Throughout the nancial year, the Company has programmes for meetings or interviews with the investment community or the press. Investors and analysts feedback is sought to ensure principal issues are being effectively communicated and shareholders objectives are known. The Companys website at http://www.ingresscorp.com.my contains vital information concerning the Group which is updated on a regular basis and shareholders are able to put questions to the Company through the website. D. Accountability and audit Financial reporting It is the Boards commitment to present a balanced and meaningful assessment of the Groups nancial performance and prospects at the end of the nancial year, primarily through the annual nancial statements and quarterly announcement of results to Bursa Malaysia as well as the Chairmans statement and review of operations in the Annual Report. The Board is assisted by the Audit Committee to oversee the Groups nancial reporting process and the quality of its nancial reporting.
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I n g r e s s C o r p o r a tio n Be r h a d
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Group Structure
AU TO M OT IVE
AUTOMOTIVE COMPONENTS MANU FACTURIN G ( ACM )
INGRESS ENGINEERING SDN BHD 100%
MALAYSIA
INGRESS PRECIS ECISION SDN BHD 90% INGRESS TECHNOLOGIES SDN BHD 70% IN TEC 70% INGRESS CES SDN B D 70% GR N BH 0% TALENT SYNERGY SD BHD 100% TA T Y SDN 0% INGRESS AUTOVENTURES CO., LT 62.5% VENTURES LTD 2 FINE COMPONE NENTS (THAILAND) CO., LTD 100% O L 0% P.T. INGRESS MALINDO VENTURE 81% T LINDO VENTURES 81 INGRES MAYUR AUTO VENTURES PRIVATE LIMITED. 40% ESS A ENTURES PR VA
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I n g r e s s C o r p o r a tio n Be r h a d
5
(1)
NEW BMW 5 SERIES LAUNCH 14 MAY 2010 Ingress Auto Sdn Bhd was the rst dealer in Malaysia to unveil the new BMW models i.e. 523i, 535i and Gran Turismo at midnight, a few hours before the nationwide launch with an unexpected turnout of about 300 pax. 11th ANNUAL GENERAL MEETING (AGM) 20 JULY 2010 The Companys eleventh AGM was held at the Indah Ballroom, Flamingo Hotel by the Lake, Kuala Lumpur attended by approximately 150 shareholders. OFFICE RELOCATION 2 AUGUST 2010 Ingress ofcially moved to its new headquarters located at Lot 2778, Fifth Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur. INDIA PLANT LAUNCH 2 AUGUST 2010 Ingress Mayur Autoventures Private Ltd (IMAPL), the Companys new venture in India, was ofcially launched by the Group Executive Vice Chairman, Datuk Rameli bin Musa, witnessed by Mr. RV Gupta and Mr. P.Lal, Managing Director of IMAPL and Management representative of Mayur Industries Ltd respectively. HARI RAYA AIDILFITRI CELEBRATION 27 SEPTEMBER 2010 Ingress organised a small but meaningful Hari Raya Aidiltri gathering for its staff within its ofce premises, ofciated by Datuk Rameli bin Musa, the Group Executive Vice Chairman. STUDY VISIT 4 OCTOBER 2010 Students from Universiti Malaysia Pahang paid a visit to Ingress Technologies Sdn Bhd to gain insight into the automotive industry.
(2)
(3)
(4)
(5)
(6)
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20 20
I n g r e s s C o r p o r a tio n Be r h a d
My fellow shareholders,
On behalf of the Board of Directors of Ingress Corporation Berhad, it is my pleasure to present our Annual Report for the nancial year ended 31 January 2011.
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INDUSTRY OVERVIEW
The nancial year under review, which is approximately equivalent to the calendar year 2010, saw the economy in the region bounced back stronger after emerging from the aftermath of the global economic crisis in 2008/2009. The Governments swift action of economic stimuli put in place in 2009 by our Honourable Prime Minister, successfully set the footing for the countrys economic recovery. With the improving economy, the automotive industry in Malaysia continued with its upward momentum into the calendar year 2010. Total vehicle sales (TIV) in the country grew by 12.7% from 2009 to hit an all time high of 605,156 units, thus surpassing the previous record of 552,316 units achieved in 2005. In Thailand, TIV increased by 45.8%, registering 800,357 units of vehicles for the calendar year 2010 from 548,871 units in 2009. At the same time, total automotive production for Thailand in 2010 surged 64.6% to 1,645,304 unit of vehicles from 999,378 units last year. Vehicle sales in Indonesia, meanwhile, had an even more robust growth with vehicle sales expanding 57.3% in 2010 to a total of 764,710 units compared with 486,088 units in the previous year. The economic transformation program initiated by the Government had also spurred the growth of the construction industry. This augurs well for the railway construction sector, power industry as well as the oil and gas industry, giving new opportunities for our Power Engineering and Projects Division (PEP Division).
FINANCIAL OVERVIEW
On the back of strong gures shown by the automotive industry in the region, the Group successfully recorded another year of extremely strong performance. The Group registered a 17.0% improvement in revenue to RM761.2 million from RM650.6 million a year earlier. Our stronger performance was mainly due to the better overall contributions from our Automotive Division, particularly the Automotive Components Manufacturing Divisions in Malaysia and Thailand. In line with the increasing revenue, the Group posted a remarkable increase of 61.1% in net prot to RM29.8 million for the nancial year ended 31 January 2011 from RM18.5 million achieved previously. The better prots recorded have resulted in a healthier nancial position for the Group. The Debt-Equity ratio for the Group has now been reduced to 1.54 times compared to 2.21 last nancial
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I n g r e s s C o r p o r a tio n Be r h a d
TIV di Thailand mencatatkan peningkatan sebanyak 45.8%, dengan jualan sebanyak 800,357 unit kenderaan pada tahun kalendar 2010 berbanding 548,871 unit pada tahun 2009. Pada masa yang sama, jumlah keseluruhan pengeluaran automotif Thailand pada tahun 2010 meningkat 64.6% kepada 1,645,304 unit dari 999,378 unit kenderaan pada tahun sebelumnya. Sementara itu, jualan kenderaan di Indonesia mencatat pertumbuhan yang lebih tinggi dengan jualan kenderaan meningkat sebanyak 57.3% bagi tahun 2010 dengan jumlah 764,710 unit dibandingkan dengan 486,088 unit pada tahun sebelumnya. Program transformasi ekonomi yang dilaksanakan oleh Kerajaan juga memacu pertumbuhan industri pembinaan. Ini merupakan suatu petanda baik untuk sektor-sektor pembinaan kereta api, industri elektrik
lebih kurang setara dengan tahun kalendar 2010, menyaksikan ekonomi di rantau ini kembali kukuh selepas krisis ekonomi global pada tahun 2008/2009. Tindakan pantas Kerajaan melancarkan pakej stimulus ekonomi dalam 2009 yang diumumkan oleh YAB Perdana Menteri, berjaya membantu memulihkan ekonomi negara. Dengan ekonomi yang semakin baik, momentum bagi industri automotif di Malaysia terus meningkat dalam tahun kalendar 2010. Jumlah penjualan kenderaan (TIV) di negara ini berkembang sebanyak 12.7% dari tahun 2009 dengan mencatatkan jualan tertinggi sebanyak 605,156 unit, melebihi rekod sebelum ini sebanyak 552,316 unit yang direkodkan pada tahun 2005.
23
year, stemming from both the repayment of borrowings / nancing and the strengthening of reserves. Net tangible assets per share also improved to RM1.96 per share from RM1.83 per share last nancial year.
OPERATIONS REVIEW
For the nancial year under review, virtually all of our operations showed encouraging improvements, led by our Automotive Division, garnering 89.4% of the Groups total revenue, especially our Malaysian and Thailand operations. For Malaysia, the improvement was virtually across our product lines but most notably from this being the rst full nancial year of supplies for door related parts and sash for Perodua Alza and Proton Exora. In Thailand, the revenue increase stemmed from volume improvements in virtually all of our supplies to our customers, namely Mitsubishi, Honda, Isuzu, Ford / Mazda. Notably amongst these, was the marked volume increase in our supplies to Mitsubishis one-tonne pick-up truck models and Honda models. Our Indonesian operation also posted encouraging performance although its overall contribution to the Group remained marginal at this point. In December 2010, another milestone was achieved by the Group with the formation of our joint venture company in India, Ingress Mayur Auto Ventures Private Limited, in which the Group subscribed 40% of the equity whilst the remaining 60%
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I n g r e s s C o r p o r a tio n Be r h a d
serta industri minyak dan gas yang memberi peluang baru bagi Bahagian Kejuruteraan Kuasa dan Projek (PEP).
keuntungan bersih sebanyak 61.1% kepada RM29.8 juta bagi tahun berakhir 31 Januari 2011 daripada RM18.5 juta yang dicatatkan pada tahun kewangan yang lepas. Peningkatan keuntungan yang direkodkan telah menghasilkan kedudukan kewangan yang lebih sihat bagi Kumpulan. Nisbah Hutang kepada Ekuiti
ULASAN KEWANGAN
Disokong berjaya cemerlang oleh prestasi di industri ini, prestasi lagi. automotif Kumpulan yang yang telah sangat berjaya
untuk Kumpulan kini telah berkurang kepada 1.54 kali berbanding dengan 2.21 kali pada tahun kewangan lepas, hasil daripada pembayaran hutang dan penguatan rizab. Aset ketara bersih bagi setiap saham juga bertambah baik iaitu kepada RM1.96 bagi setiap saham daripada RM1.83 bagi setiap saham pada tahun kewangan lepas.
menggalakkan
rantau
merekodkan sekali
Kumpulan
mencatat peningkatan perolehan sebanyak 17.0% kepada RM761.2 juta daripada RM650.6 juta pada tahun kewangan yang lepas. Prestasi cemerlang Kumpulan adalah hasil sumbangan perolehan yang lebih baik secara keseluruhan daripada Bahagian Automotif kami, khususnya Bahagian Pengeluaran Komponen Automotif di Malaysia dan Thailand. Sejajar dengan peningkatan dalam perolehan,
TINJAUAN OPERASI
Bagi tahun kewangan semasa, hampir semua yang
kami
menunjukkan
peningkatan
25
being owned by our joint venture partner. Im happy to inform that even in infancy, the JV company has already secured a contract to supply Suzuki Maruti India of mouldings for its new model slated to commence in the second half of the current nancial year. Our Premium Automotive Dealership (PAD) for BMW vehicles continued to post respectable number of vehicles sales. As part of our strategy to improve our range of services and increase margins, during the nancial year our PAD operations commenced a body and paint shop for repairing BMW vehicles. For the Power Engineering and Projects Division, revenues declined about a tenth compared to a nancial year earlier which mostly due to delays in commencing the already secured projects. Within the division, Multi Discovery Sdn Bhd remained the main revenue contributor derived from the transmission line and substation projects undertaken during the nancial year. However, the division was actively involved in bidding for new projects in the power, railway, as well as oil and gas sectors. These efforts are expected to lay the foundation for future growth for the division.
PROSPECTS
The economic prospect for Malaysia remains good. In its bulletin in April 2011, the Malaysian Institute of Economic Research (MIER) contended that the economic
26
I n g r e s s C o r p o r a tio n Be r h a d
89.4%
daripada
jumlah
keseluruhan
perolehan
kewangan semasa. Bahagian ini terlibat secara aktif dalam membida projek-projek baru dalam sektor kuasa, kereta api elektrik, serta sektor minyak
Kumpulan khususnya operasi kami di Malaysia dan Thailand. Peningkatan prestasi di Malaysia adalah sumbangan daripada peningkatan bagi kebanyakan produk kami tetapi yang paling ketara adalah sumbangan daripada pembekalan untuk bahagian berkaitan pintu dan Sash bagi Perodua Alza dan Proton Exora. Peningkatan perolehan di Thailand pula adalah hasil daripada peningkatan pembekalan untuk pelanggan-pelanggan kami iaitu Mitsubishi, Honda, Isuzu, Ford / Mazda. Peningkatan paling ketara adalah peningkatan dalam pembekalan kami kepada model Mitsubishi dan Honda. Operasi kami di Indonesia juga merekodkan prestasi yang memberansangkan walaupun sumbangan perolehan secara keseluruhan bagi Kumpulan adalah marginal pada masa ini. Pada bulan Disember satu lagi 2010, Kumpulan telah
merekodkan
pencapaian
dengan
pembentukan syarikat usahasama di India, Ingress Mayur Auto Ventures Private Limited di mana Kumpulan memegang 40% ekuiti manakala 60% lagi dimiliki oleh rakan kongsi usahasama kami. Dengan sukacitanya, saya ingin memaklumkan bahawa syarikat usahasama ini telah mendapat kontrak untuk membekalkan komponen moulding kepada Suzuki Maruti India untuk model baru yang dijadualkan akan dilancarkan pada pertengahan kedua tahun kewangan semasa ini. Pengedar Automotif premium untuk kenderaan BMW (PAD) terus mencatat jumlah jualan kenderaan yang memberangsangkan. Sebagai sebahagian daripada strategi kami untuk meningkatkan mutu perkhidmatan dan margin kami, dalam tahun kewangan yang semasa, operasi PAD kami memulakan perkhidmatan pembaikpulih yang diiktiraf untuk kenderaan BMW. Bahagian PEP mencatatkan penurunan perolehan sekitar sepersepuluh berbanding tahun kewangan sebelumnya kebanyakannya kerana kelewatan dalam memulakan projek yang sudah diperolehi.
Multi Discovery Sdn Bhd terus menjadi penyumbang perolehan utama hasil daripada jalur transmisi dan projek substation yang diperolehi dalam tahun
27
recovery, which started in mid-2009, will continue in 2011. Developing Asia with better economic fundamentals and stronger domestic demand is set to lead global growth. MIER also projected the domestic economy will grow 5.2% year-on-year and domestic demand will continue to remain strong from supportive government policy measures. Although our local economy has been resilient and consumer sentiments remained positive, we have to remain cautious as the uncertainties over the global economies remain unresolved, especially the Euro Zone debt crisis. This, together with resultant shortage of components and spare parts due to the earthquake that hit Japan in March 2011, have dampened somewhat the automotive industry in Asean in rst half of 2011. However, all the Japanese automakers in Asean have taken steps to mitigate these downside, with full recovery targeted by the third quarter of this nancial year. In Malaysia, the Malaysian Automotive Association (MAA) remains positive for the local automotive industry in 2011 to embark on recovery due to the unexpected event in Japan. For 2011, MAA is projecting sales to marginally rise to 618,000 units. The Government initiative to accelerate the liberalisation of the automotive industry is not expected to impair sales volume but may cause reorganization within the industry players. In terms of operations, our ACM Malaysia is currently gearing for the commencement for the supply of parts for both Perodua and Proton new models. In the case of Thailand, TIV for the calendar year 2011 is forecast at 800,000 units of vehicles, whilst total production is targeted to increase by 9.4%, year-onyear, to 1.8 million units of vehicles. However, some corrections may be expected depending on the speed of recovery for parts supply from Japan. Currently, our ACM Thailand Division is making preparations for the commencement of supply of new parts for General Motors as well as Suzuki in the fourth quarter of the current nancial year.
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I n g r e s s C o r p o r a tio n Be r h a d
dan gas. Usaha ini dijangka akan menjadi asas bagi pertumbuhan bahagian ini pada tahun-tahun hadapan.
hati kerana ketidaktentuan terhadap ekonomi global terutamanya krisis hutang Zon Euro. Keadaan ini diburukkan lagi dengan impak kekurangan komponen dan alat ganti akibat daripada gempa bumi yang melanda Jepun pada Mac 2011 telah merencetkan industri automotif di Asean pada separuh pertama
PROSPEK
Prospek ekonomi Malaysia dijangkakan kekal
tahun kalendar 2011. Namun begitu, semua pembuat kereta Jepun di Asean telah mengambil langkah untuk memperbaiki situasi ini dengan pemulihan penuh disasarkan pada suku tahun ketiga tahun kalendar 2011. Persatuan Automotif Malaysia (MAA) tetap positif terhadap industri automotif tempatan pada tahun 2011 yang telah memulakan aktiviti pemulihan akibat kejadian yang tidak dijangka di Jepun. Bagi tahun kalendar 2011, MAA mensasar penjualan yang lebih baik kepada 618,000 unit. Inisiatif Kerajaan untuk mempercepatkan liberalisasi industri automotif dijangka tidak akan mengganggu jumlah jualan
baik. Dalam buletin yang dikeluarkan oleh Institut Penyelidikan Ekonomi Malaysia (MIER) pada bulan April 2011, MIER berpendapat bahawa pemulihan ekonomi yang bermula pada pertengahan 2009 akan berterusan pada tahun 2011. Perkembangan Asia dengan asas ekonomi yang lebih baik dan permintaan domestik yang lebih tinggi MIER akan membantu pertumbuhan global. juga menjangkakan
ekonomi domestik akan berkembang sebanyak 5.2% daripada tahun kalendar yang lepas dan permintaan domestik akan terus kukuh dengan sokongan daripada dasar kerajaan. Walaupun ekonomi tempatan kukuh dan sentimen pelanggan terus positif, kita harus sentiasa berhati-
tetapi boleh menyebabkan penyusunan semula di kalangan pemain industri. Dalam aspek operasi,
29
A much better performance is forecast for Indonesia, with TIV for the calendar year 2011 is expected to increase by 11.2% to 850,000 unit. In line, we expect our Indonesian operations to continue improving in the current year. We expect PEP Division to bounce back this nancial year with stronger numbers from the expected contributions from its current projects in hand as well as the commencement of new projects especially in the Power and Railway sectors.
CORPORATE ACTIVITIES
In the corporate front, I would like to take this opportunity of sharing with our beloved shareholders on the successful settlement of our Sukuk Al-Ijarah on 30th June 2010. The then RM120.3 million outstanding Sukuk was completely renanced by internal funds and proceeds from the new RM110 million Syndicated Commodity Murabahah Term Islamic Facility. During the nancial year, we undertook several divestments for marketing and strategic reasons. First, we successfully divested to our joint venture partner 19% equity in our associate company, Balfour Beatty Rail Sdn Bhd, which raised RM11.4 million cash. Subsequently, we completed the sales of 11.2% equity in our Thailand subsidiary, Ingress Autoventures Co., Ltd to our Japanese partner for RM6.9 million cash. Part of these proceeds were utilised to redeem the Sukuk, as mentioned
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I n g r e s s C o r p o r a tio n Be r h a d
Kami berharap bahagian PEP akan bangkit semula pada tahun kewangan ini dengan sumbangan yang lebih kukuh daripada projek-projek yang telah diperolehi serta bermulanya projek-projek baru terutama di sektor-sektor Kuasa dan Kereta Api.
AKTIVITI KORPORAT
Saya ingin mengambil kesempatan ini untuk berkongsi dengan para pemegang saham atas kejayaan pelnyelesaian Sukuk Al-Ijarah pada 30 Jun 2010. Sukuk tertunggak yang bernilai RM120.3 juta itu telah diselesaikan dengan pembiayaan semula sebanyak RM110 juta daripada kemudahan yang diperolehi daripada Syndicated Commodity Murabahah Term Islamic Facility dan juga dana dalaman. Dalam tahun kewangan semasa, kami melakukan beberapa pelupusan pelaburan bagi tujuan strategik. Kami telah berjaya melupuskan 19% ekuiti dalam syarikat bersekutu kami, Balfour Beatty Rail Sdn Bhd, yang mana telah menjana tunai sebanyak RM11.4 ACM Malaysia kini sedang membuat persiapan untuk memulakan pembekalan bahagian kenderaan untuk model-model baru Perodua dan Proton. TIV di Thailand bagi tahun kalendar 2011 pula dijangka mencatatkan 800,000 unit kenderaan sementara jumlah keseluruhan pengeluaran disasarkan meningkat sebanyak 9.4% daripada tahun kalendar yang lepas kepada 1.8 juta unit kenderaan. Namun demikian, sasaran tersebut bergantung kepada kecepatan pemulihan bekalan alat ganti dari Jepun. Bahagian ACM Thailand sedang membuat persiapan untuk memulakan pembekalan bahagian kenderaan untuk General Motors dan Suzuki pada suku keempat tahun kalendar 2011. Prestasi yang lebih baik dijangka untuk Indonesia dengan TIV untuk tahun kalendar 2011 dijangka akan meningkat sebanyak 11.2% kepada 850,000 unit. Selaras dengan itu, kami berharap operasi di Indonesia akan terus berkembang dengan baik bagi tahun kewangan semasa. Selain itu, kami juga terus menilai seluruh operasi kami untuk menjadikannya lebih tersusun dan memfokus sumber kami kepada aktiviti-aktiviti teras kami yang lebih menguntungkan. Sejajar dengan ini, kita telah melupuskan 100% ekuiti dalam dua unit kami iaitu, Matrix Power Services Sdn Bhd dan syarikat bersekutu Maju Nusa Sdn Bhd, selepas tahun kewangan semasa. juta. Seterusnya, kami juga telah menjual 11.2% saham dalam anak syarikat di Thailand, Ingress Autoventures Co., Ltd kepada rakan niaga Jepun kami untuk RM6.9 juta tunai. Sebahagian daripada hasil penjualan tersebut telah digunakan untuk menyelesaikan Sukuk seperti yang disebutkan sebelum ini. Dalam tahun kewangan semasa juga, Kumpulan telah meningkatkan pemilikan ekuiti dalam anak syarikat di Indonesia, PT Ingress Malindo Ventures kepada 81% daripada 72% serta menyelesaikan pengambilan 40% saham di Ingress Mayur Auto Ventures Private Limited.
31
earlier. During the nancial year, we have also increased our effective equity interest in our Indonesian subsidiary PT Ingress Malindo Ventures from 72% to 81% as well as completed the subscription of 40% stake in Ingress Mayur Autoventures Private Limited. Furthermore, we are also continuously evaluating our whole operations, to make it more lean and streamline as well as to concentrate our resources on our more protable core activities. This has led us to divest 100% of two of our operating units namely, Matrix Power Services Sdn Bhd and our associate, Maju Nusa Sdn Bhd, subsequent to the nancial year under review.
DIVIDENDS
Due to certain nancial covenants restrictions imposed on the Group by our nanciers, we are still unable to recommend any dividends to be paid for the nancial year ended 31 January 2011. The Board recognise your continued support and patience and we will do everything to further improve our nancials for this coming nancial year.
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I n g r e s s C o r p o r a tio n Be r h a d
DIVIDEN
Kami ingin memohon maaf kepada para pemegang saham kerana Lembaga Pengarah sekali lagi tidak dapat mengisytiharkan dividen bagi tahun kewangan berakhir 31 Januari 2011 kerana sekatan kewangan yang dikenakan terhadap Kumpulan oleh para pembiaya. Lembaga Pengarah berbesar hati dengan sokongan dan kesabaran anda dan kami akan melakukan segalanya untuk memperbaiki kedudukan kewangan kami pada tahun kewangan yang akan datang.
kerajaan, dan agensi serta semua rakan perniagaan kami di Malaysia, Thailand, Indonesia, Jepun, Korea dan India atas sokongan dan kepercayaan terhadap kami. Ucapan terima kasih yang tidak terhingga juga kami ucapkan kepada pihak pengurusan dan kakitangan atas sokongan, sumbangan, dedikasi dan usaha tak kenal lelah mereka bagi pencapaian prestasi luar biasa Kumpulan untuk tahun kewangan 2011. Akhir kata, saya ingin mengucapkan terima kasih secara peribadi kepada rakan-rakan saya yang dihormati atas kepimpinan mereka, nasihat, arahan, bimbingan pakar dan komitmen mereka terhadap penghargaan yang kejayaan Kumpulan sepanjang tahun. Terima Kasih. Shamsudin @ Samad bin Kassim Pengerusi
tidak terhingga kepada semua pemegang yang berkepentingan, terutamanya kepada pemegang saham kami yang dihormati atas sokongan anda dan kepercayaan terhadap kami bagi sepanjang tahun kewangan. Kami juga ingin menyampaikan penghargaan kami kepada pelanggan-pelanggan, bank-bank, wakil-wakil
33
ACKNOWLEDGMENTS
We would like to express our deepest appreciation to all our stakeholders, especially our esteemed shareholders, for your continued support and faith in us throughout the nancial year. We would also like to extend our appreciation to our customers, principals bankers, Government authorities and agencies as well as our growing list of business associates in Malaysia, Thailand, Indonesia, Japan, Korea and India for your support and condence in us. A special thank goes to the management and staff for their continued support, contributions, dedication and tireless efforts for the Groups remarkable performance for the nancial year 2011. Finally, I would like to personally thank my esteemed colleagues on the Board for their leadership, counsel, direction, expert guidance and commitment towards the Groups success throughout the nancial year.
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I n g r e s s C o r p o r a tio n Be r h a d
35 35
From left
Ungku Farid bin Ungku Abd Rahman Abdul Rahim bin Haji Hitam Datuk Rameli bin Musa (seated) Dato Vaseehar Hassan bin Abdul Razack Dato Zulkiy @ Ibrahim bin Ab Rahman Abdul Khudus bin Mohd Naaim Shamsudin @ Samad bin Kassim (seated)
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I n g r e s s C o r p o r a tio n Be r h a d
37 37
Aged 64, Malaysian Appointed on 2 November 2001 Berusia 64 tahun, warganegara Malaysia Dilantik pada 2 November 2001
Mr. Samad holds a Bachelor of Economics from University of Malaya and a Master in Public and International Affairs from University of Pittsburg, USA. He commenced his career in 1970 in the Public Service and in 2000 was appointed as Chief Executive Ofcer of the Small and Medium Industries Development Corporation until his retirement in 2001. He also sits on Boards of Century Logistics Holdings Berhad, Supermax Corporation Berhad, Kinsteel Berhad, Perwaja Holdings Berhad, Multi-Code Electronics Industries (M) Berhad, BHS Industries Berhad and Homeritz Corporation Berhad. He also sits on the Board of several other private limited companies. He is a member of the Audit, Remuneration and Nomination Committees of the Company. Save as disclosed on page 157, Mr. Samad does not hold any securities in the Company and its subsidiaries and none of his family members have direct or indirect relationship with any director and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a conict of interest with the Company and has not been convicted of any criminal offences within the past 10 years. He attended all of the nine Board Meetings held during the nancial year.
En. Samad memegang ljazah Sarjana Muda Ekonomi dari Universiti Malaya dan Sarjana Hal-Ehwal Awam dan Antarabangsa dari University of Pittsburgh, USA. Beliau memulakan kerjayanya di dalam perkhidmatan awam pada tahun 1970 dan seterusnya pada tahun 2000, beliau telah dilantik sebagai Ketua Pegawai Eksekutif Perbadanan Pembangunan Industri Kecil dan Sederhana sehinggalah persaraan beliau dari sektor perkhidmatan awam pada tahun 2001. Beliau juga adalah Ahli Lembaga Pengarah Century Logistics Holdings Berhad, Supermax Corporation Berhad, Kinsteel Berhad, Perwaja Holdings Berhad, Multi-Code Electronics Industries (M) Berhad, BHS Industries Berhad dan Homeritz Corporation Berhad. Beliau juga adalah ahli Lembaga Pengarah bagi beberapa lagi syarikat sendirian berhad. Beliau adalah ahli Jawatankuasa Audit, Imbuhan dan Perlantikan Syarikat. Selain daripada yang telah dinyatakan pada mukasurat 157, En. Samad tidak mempunyai sebarang pegangan saham di dalam Syarikat atau anak syarikat dan tiada di kalangan ahli keluarga beliau yang mempunyai kaitan secara langsung atau tidak langsung dengan mana-mana Pengarah dan/atau pemegang saham utama Syarikat. Beliau tidak pernah terlibat dengan apa-apa urusniaga sama ada secara langsung atau tidak langsung, yang mempunyai percanggahan kepentingan dengan Syarikat dan tidak pernah disabitkan apa-apa kesalahan jenayah dalam tempoh 10 tahun yang lalu. Beliau telah menghadiri kesemua sembilan Mesyuarat Lembaga Pengarah pada tahun kewangan semasa.
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I n g r e s s C o r p o r a tio n Be r h a d
Datuk Rameli holds a Bachelor of Telecommunications Engineering and a Master in Microwave Communications both from the University of Shefeld, United Kingdom. He started his career as a lecturer in electronics and microwave telecommunications at Universiti Teknologi Malaysia in 1972. He left Universiti Teknologi Malaysia in 1975 to work with Pernas NEC Telecommunications Sdn Bhd, where he worked from 1976 to 1980 before joining Sapura Holdings Sdn Bhd rising to the post of Executive Vice-Chairman. In 1997, he joined Tap Resources Berhad as its Executive Chairman before his resignation in 1998. He currently sits on the Board of several other private limited companies.
Datuk Rameli memegang Ijazah Sarjana Muda Kejuruteraan Telekomunikasi dan Sarjana Komunikasi Gelombang Mikro dari University of Shefeld, United Kingdom. Beliau memulakan kerjayanya sebagai pensyarah dalam bidang elektronik dan telekomunikasi gelombang mikro di Universiti Teknologi Malaysia pada tahun 1972. Beliau meletak jawatan sebagai pensyarah di Universiti Teknologi Malaysia pada 1975 bagi menyertai Pernas NEC Telecommunications Sdn Bhd, di mana beliau berkhidmat dari tahun 1976 hingga 1980 sebelum meneruskan kerjaya beliau bersama Sapura Holdings Sdn Bhd sehingga dilantik menjadi Naib Pengerusi Eksekutif. Dalam tahun 1997, beliau menyertai Tap Resources Berhad sebagai Datuk Rameli is a member of the Pengerusi Eksekutif sebelum meletak Remuneration Committee of the jawatan pada tahun 1998. Beliau juga adalah ahli Lembaga Pengarah beberapa Company. syarikat sendirian berhad. Save as disclosed on page 157, Datuk Rameli merupakan ahli Rameli does not hold any securities in the Datuk subsidiaries. None of his family members Jawatankuasa Imbuhan Syarikat. have direct or indirect relationship with any director and/or major shareholder Selain daripada yang telah dinyatakan of the Company save and except by pada mukasurat 157 Datuk Rameli tidak virtue of his substantial shareholdings and memegang sebarang saham dalam directorship in Ramdawi Sdn Bhd. He has anak syarikat dan tiada di kalangan ahli not entered into any transaction, whether keluarga beliau yang mempunyai kaitan directly or indirectly, which has a conict secara langsung atau tidak langsung of interest with the Company and has not dengan mana-mana pengarah dan / atau been convicted of any criminal offences pemegang saham utama Syarikat kecuali within the past 10 years. He attended all dan hanya dengan menjadi pemegang of the nine Board Meetings held during the saham utama dan jawatan pengarah yang dipegang di Ramdawi Sdn Bhd. nancial year. Beliau tidak pernah terlibat dengan apaapa urusniaga sama ada secara langsung atau tidak langsung yang mempunyai percanggahan kepentingan dengan Syarikat dan tidak pernah disabitkan apaapa kesalahan jenayah sepanjang 10
tahun yang lalu. Beliau telah menghadiri kesemua sembilan Mesyuarat Lembaga Pengarah pada tahun kewangan semasa.
39 39
Dato Vaseehar Hassan has 28 years of experience in the nancial sector. He has a Bachelors Degree in Accounting, Master in Business Administration as well as Specialised Masters in Consulting and Coaching and is currently pursuing a Doctoral Research at the Vrije Universiteit, Amsterdam.
Dato Vaseehar Hassan mempunyai 28 tahun pengalaman di bidang kewangan. Beliau yang memegang Ijazah Sarjana Muda dalam Perakaunan, Ijazah Sarjana dalam Pengurusan Perniagaan serta Specialised Masters in Consulting and Coaching pada masa ini sedang mengikuti kursus penyelidikan kedoktoran di Vrije Universiteit, Amsterdam.
He also sits on the Board of several other Beliau juga adalah ahli Lembaga Pengarah private limited companies. beberapa syarikat sendirian berhad. He is the Chairman of the Remuneration and Nomination Committees and a Beliau adalah Pengerusi Jawatankuasa member of the Audit Committee of the Imbuhan dan Perlantikan dan ahli Jawatankuasa Audit Syarikat. Company. Save as disclosed on page 157, Dato Vaseehar Hassan does not hold any securities in the subsidiaries and none of his family members have direct or indirect relationship with any director and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a conict of interest with the Company and has not been convicted of any criminal offences within the past 10 years. He attended six out of the nine Board Meetings held during the nancial year. Selain daripada yang telah dinyatakan pada mukasurat 157, Dato Vaseehar tidak memegang sebarang saham di dalam anak syarikat dan tiada di kalangan ahli keluarga beliau yang mempunyai kaitan, secara langsung atau tidak langsung, dengan mana-mana pengarah dan / atau pemegang saham utama Syarikat. Beliau tidak pernah terlibat dengan apa-apa urusniaga, secara langsung atau tidak langsung yang mempunyai percanggahan kepentingan dengan Syarikat dan tidak pernah disabitkan apa-apa kesalahan jenayah dalam tempoh 10 tahun yang lepas. Beliau telah menghadiri enam daripada sembilan Mesyuarat Lembaga Pengarah pada tahun kewangan semasa.
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I n g r e s s C o r p o r a tio n Be r h a d
any director and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a conict of interest with the Company and has not been convicted of any criminal offences within the past 10 years. He attended eight out of the nine His career started as Assistant Secretary at Board Meetings held during the nancial the Ministry of Foreign Affairs on 7 April 1971 year. and later served as a Second Secretary, Embassy of Malaysia in Manila, Philippines Dato Zulkiy mempunyai pengalaman on 12 November 1973. In 1977, he was melebihi 35 tahun dalam bidang appointed as First Secretary, Embassy of pentadbiran dan perkhidmatan diplomatik. Malaysia in Yangon, Myanmar. On 16 March Beliau memegang Ijazah Sarjana Muda 1979 he took up the position of Principal Sastera dengan kepujian dari Universiti Assistant Secretary (Administration) at Malaya dan Diploma in Foreign Service Ministry of Foreign Affairs. He later joined dari University of Oxford, United Kingdom. the Embassy of Malaysia in Cairo, Egypt on 17 June 1981 as a Counsellor. In 1987 Beliau memulakan kerjayanya sebagai he was appointed as Deputy Chief of Penolong Setiausaha di Kementerian Luar Protocol, Ministry of Foreign Affairs. He Negeri pada 7 April 1971 dan seterusnya was then posted as the Consul General of ditugaskan sebagai Setiausaha Kedua Malaysia in Medan, Indonesia in 1989 and di Kedutaan Malaysia di Filipina pada 12 in Jeddah, Saudi Arabia on May 1992. He November 1973. Pada tahun 1977, beliau was later appointed as the Ambassador/ dilantik sebagai Setiausaha Pertama di High Commissioner of Malaysia to several Kedutaan Malaysia di Yangon, Myanmar. countries such as in 1993 to Kuwait Pada 16 Mac 1979, beliau seterusnya sebagai Ketua Penolong and concurrently accredited as an dilantik Ambassador to Bahrain, Qatar, Oman and Setiausaha (Pentadbiran) di Kementerian UAE and then to Bangladesh in 1997. He Luar Negeri dan kemudiannya menyertai was also the High Commissioner to New Kedutaan Malaysia di Kaherah, Mesir pada Zealand and concurrently accredited as 17 Jun 1981 sebagai Penasihat Kedutaan. High Commissioner to Cook Islands and Berikutnya pada tahun 1987, beliau telah Niue in 2000 and later held the same dilantik sebagai Timbalan Ketua Protokol position in New Delhi, India from August di Kementerian Luar Negeri. Pada tahun 1989, beliau telah ditugaskan sebagai 2004 to December 2006. Konsul Jeneral di Medan, Indonesia dan Dato Zulkiy is a member of the Nomination seterusnya ke Jeddah, Arab Saudi pada Mei 1992. Beliau kemudianya dilantik and Audit Committees of the Company. sebagai Duta/Pesuruhjaya Tinggi Malaysia Save as disclosed on page 157, Dato ke beberapa buah negara seperti di Kuwait Zulkiy does not hold any securities in the pada tahun 1993, dan pada waktu yang subsidiaries and none of his family members sama ditauliahkan serentak sebagai Duta have direct or indirect relationship with Besar Malaysia ke Bahrain, Qatar, Oman Dato Zulkiy has over 35 years of experience in the administrative and diplomatic service. He has a Bachelor of Art (Hons) from University of Malaya and Diploma in Foreign Service from University of Oxford, United Kingdom.
dan UAE dan seterusnya Bangladesh pada tahun 1997. Beliau juga dilantik sebagai Pesuruhjaya Tinggi Malaysia ke New Zealand dan ditauliahkan serentak ke Kepulauan Cook serta Niue pada tahun 2000 seterusnya memegang jawatan yang sama ke New Delhi, India pada Ogos 2004 hingga Disember 2006. Dato Zulkiy merupakan Jawatankuasa Perlantikan dan Syarikat. ahli Audit
Selain daripada yang telah dinyatakan pada mukasurat 157, Dato Zulkiy tidak memegang sebarang saham di dalam anak syarikat dan tiada di kalangan ahli keluarga beliau yang mempunyai kaitan, secara langsung atau tidak langsung, dengan mana-mana pengarah dan / atau pemegang saham utama Syarikat. Beliau tidak pernah terlibat dengan apa-apa urusniaga, secara langsung atau tidak langsung yang mempunyai percanggahan kepentingan dengan Syarikat dan tidak pernah disabitkan apa-apa kesalahan jenayah dalam tempoh 10 tahun yang lepas. Beliau telah menghadiri lapan daripada sembilan Mesyuarat Lembaga Pengarah pada tahun kewangan semasa.
41 41
Mr. Abdul Khudus is a Chartered Accountant in the Malaysian Institute of Accountants, a Fellow, Association of Chartered Certied Accountants United Kingdom, an Associate in the Chartered Malaysian Institute of Taxation, an Associate in the Institute of Co-operative & Management Accountants, Malaysia, and holds a Diploma in Accountancy from Mara Institute of Technology, Malaysia. His career started as an Audit Junior at Arthur Young & Co, Public Accountants, Kuala Lumpur from January 1976 to December 1976 and later served as Audit Senior at Ramoss Jassen & Partners, Chartered Accountants, London from July 1980 to December 1984. He was appointed as Accountant at Islamic Finance House PLC, London from January to December 1985. He joined Syarikat Takaful Malaysia Berhad in January 1986 until August 1993 with the last position as Senior Finance Manager. From September 1993 to December 1996, he was Director of Corporate Affairs at Emile Woolf Group of Colleges, Kuala Lumpur. He later joined SKMN Associates, Chartered Accountants, Malaysia from January 1997 until September 1999 as a Partner. He has been a partner at KS & Associates, Chartered Accountants, Malaysia since October 1999, which has since merged with AKN Arif, Chartered Accountants in August 2008. His directorship as Member of Board of Directors and Audit Committee in other public companies are Inch Kenneth Kajang Rubber PLC and Concrete Engineering Products Bhd. He is also a director of a number of private limited companies. He is the Chairman of the Audit Committee and a member of the Remuneration
Committee of the Company. Save as disclosed on page 157, Abdul Khudus does not hold any securities in the subsidiaries. None of his family members have direct or indirect relationship with any director and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a conict of interest with the Company and has not been convicted of any criminal offences within the past 10 years. He attended eight out of the nine Board Meetings held during the nancial year. En. Abdul Khudus adalah Akauntan Bertauliah di Institut Akauntan Malaysia, Fellow di Association of Chartered Certied Accountants United Kingdom, Associate di Institut Percukaian Bertauliah Malaysia, Associate di Institut Akauntan Koperasi dan Pengurusan, Malaysia serta berkelulusan Diploma Perakaunan daripada Institut Teknologi MARA, Malaysia. Beliau memulakan kerjayanya sebagai Juruaudit di Arthur Young & Co, Akauntan Awam, Kuala Lumpur dari Januari 1976 hingga Disember 1976 dan seterusnya sebagai Juruaudit Kanan di Ramoss Jassen & Partners, Akauntan Berkanun, London dari Julai 1980 hingga Disember 1984. Beliau dilantik sebagai Akauntan di Islamic Finance House PLC, London daripada Januari hingga Disember 1985. Beliau menyertai Syarikat Takaful Malaysia Berhad pada Januari 1986 hingga Ogos 1993 dengan jawatan terakhir sebagai Pengurus Kanan Kewangan. Daripada September 1993 sehingga Disember 1996, beliau adalah Pengarah Hal Ehwal Korporat di Kumpulan Kolej Emile Woolf, Kuala Lumpur. Beliau kemudiannya
menyertai SKMN Associates, Akauntan Bertauliah, Malaysia dari Januari 1997 hingga September 1999 sebagai rakan kongsi. Beliau kemudian adalah rakan kongsi di KS & Associates, Akauntan Bertauliah, Malaysia semenjak Oktober 1999, yang telah bergabung dengan AKN Arif, Akauntan Bertauliah mulai Ogos 2008. Beliau juga adalah ahli Lembaga Pengarah dan ahli Jawatankuasa Audit di Inch Kenneth Kajang Rubber PLC dan Concrete Engineering Products Bhd. Beliau juga adalah pengarah bagi beberapa syarikat sendirian berhad. Beliau adalah Pengerusi Jawatankuasa Audit dan ahli Jawatankuasa Imbuhan Syarikat. Selain daripada yang telah dinyatakan pada mukasurat 157, Abdul Khudus tidak mempunyai sebarang pegangan saham di dalam Syarikat atau anak syarikat dan tiada di kalangan ahli keluarga beliau yang mempunyai kaitan secara langsung atau tidak langsung dengan mana-mana pengarah dan / atau pemegang saham utama Syarikat. Beliau tidak pernah terlibat dengan apa-apa urusniaga sama ada secara langsung atau tidak langsung, yang mempunyai percanggahan kepentingan dengan Syarikat dan tidak pernah disabitkan apa-apa kesalahan jenayah dalam tempoh 10 tahun yang lalu. Beliau telah menghadiri lapan daripada sembilan Mesyuarat Lembaga Pengarah pada tahun kewangan semasa.
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I n g r e s s C o r p o r a tio n Be r h a d
Ungku Farid is a member of the Malaysian Institute of Accountants and a Fellow of the Chartered Institute of Management Accountants (UK). He holds a Master in Business Administration from Ohio University (USA), in collaboration with Universiti Teknologi MARA (UiTM). His previous work experience was with Pernas NEC Telecommunications Sdn Bhd in 1980. In 1981, he joined Sapura Holdings Sdn Bhd and held several positions before being promoted to Group General Manager, Finance & Accounting in 1989. In 1995 he joined Time Telecommunications Sdn Bhd and in 1997, he joined Tap Resources Berhad as Executive Director Finance before resigning in 1998. He joined Ingress Engineering Sdn Bhd as a director in 1998. He currently sits on the Board of several other private limited companies. Save as disclosed on page 157, Ungku Farid does not hold any securities in the subsidiaries. None of his family members have direct or indirect relationship with any director and/or major shareholder of the Company save and except by virtue of his directorship in Ramdawi Sdn Bhd. He has not entered into any transaction, whether directly or indirectly, which has a conict of interest with the Company and has not been convicted of any criminal offences within the past 10 years. He attended all of the nine Board Meetings held during the nancial year.
Ungku Farid adalah ahli Institut Akauntan Malaysia dan Fellow Chartered Institute of Management Accountants (UK). Beliau mempunyai Sarjana Pentadbiran Perniagaan dari Ohio University (Amerika Syarikat) secara usaha sama dengan Universiti Teknologi MARA (UiTM). Pengalaman kerjaya beliau termasuk berkhidmat di Pernas NEC Telecommunications Sdn Bhd dalam tahun 1980. Pada tahun 1981, beliau telah menyertai Sapura Holdings Sdn Bhd dan menjawat beberapa jawatan sebelum dinaikkan pangkat sebagai Pengurus Besar Kumpulan, Perakaunan dan Kewangan pada tahun 1989. Dalam tahun 1995, beliau menyertai Time Telecommunications Sdn Bhd dan pada tahun 1997, beliau kemudiannya berkhidmat di Tap Resources Berhad sebagai Pengarah Eksekutif Kewangan sehingga beliau meletakkan jawatan pada tahun 1998. Beliau menyertai Ingress Engineering Sdn Bhd sebagai pengarah pada tahun 1998. Beliau juga adalah ahli Lembaga Pengarah bagi beberapa syarikat sendirian berhad. Selain daripada yang telah dinyatakan pada mukasurat 157. Ungku Farid tidak memegang sebarang saham dalam anak syarikat. Tiada di kalangan ahli keluarga beliau yang mempunyai kaitan secara langsung atau tidak langsung dengan mana-mana pengarah dan / atau pemegang saham utama Syarikat kecuali dan hanya dengan jawatan pengarah yang dipegang di Ramdawi Sdn Bhd. Beliau tidak pernah terlibat dengan apaapa urusniaga sama ada secara langsung atau tidak langsung yang mempunyai percanggahan kepentingan dengan Syarikat dan tidak pernah disabitkan apa-
apa kesalahan jenayah sepanjang 10 tahun yang lalu. Beliau telah menghadiri kesemua sembilan Mesyuarat Lembaga Pengarah pada tahun kewangan semasa.
43 43
Mr. Abdul Rahim holds a Bachelor of Science in Production Engineering and Management from the Loughborough University of Technology, United Kingdom. He started his career at Perusahaan Otomobil Nasional Sdn Bhd (PROTON) in September 1984 until August 1989, when he then joined Alps Electric (M) Sdn Bhd as the Production Manager until September 1990. Subsequently, he joined Sapura Motors Berhad and held various management positions between October 1990 until September 1999, the last being the Deputy Managing Director. In October 1999, he joined Ingress Group as the Managing Director of Ingress Autoventures Co., Ltd. Save as disclosed on page 157, Mr. Abdul Rahim does not hold any securities in the subsidiaries and none of his family members have direct or indirect relationship with any director and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a conict of interest with the Company and has not been convicted of any criminal offences within the past 10 years. He attended all of the six Board Meetings held during the nancial year subsequent to his appointment.
En. Abdul Rahim memegang Ijazah Sarjana Muda Kejuruteraan Pengeluaran dan Pengurusan dari Loughborough University of Technology, United Kingdom. Beliau memulakan kerjayanya di Perusahaan Otomobil Nasional Sdn Bhd (PROTON) pada tahun 1984 sehingga Ogos 1989 dan seterusnya menyertai Alps Electric (M) Sdn Bhd sebagai Pengurus Pengeluaran sehingga September 1990. Beliau kemudian menyertai Sapura Motors Berhad dan memegang pelbagai jawatan pengurusan bermula bulan Oktober 1990 sehingga September 1999, yang terakhir sebagai Timbalan Pengarah Urusan. Pada bulan Oktober 1999, beliau menyertai syarikat Kumpulan Ingress sebagai Pengarah Urusan di Ingress Autoventures Co., Ltd. Selain daripada yang telah dinyatakan pada mukasurat 157, Abdul Rahim tidak memegang sebarang saham dalam anak syarikat dan tiada di kalangan ahli keluarga beliau yang mempunyai kaitan secara langsung atau tidak langsung dengan mana-mana pengarah dan / atau pemegang saham utama Syarikat. Beliau tidak pernah terlibat dengan apaapa urusniaga sama ada secara langsung atau tidak langsung yang mempunyai percanggahan kepentingan dengan Syarikat dan tidak pernah disabitkan apaapa kesalahan jenayah sepanjang 10 tahun yang lepas. Beliau telah menghadiri kesemua enam Mesyuarat Lembaga Pengarah pada tahun kewangan semasa semenjak perlantikan beliau.
44
I n g r e s s C o r p o r a tio n Be r h a d
The directors have general responsibilities for taking such steps that are reasonably available to them to safeguard the assets of the Group and the Company in order to prevent and detect fraud and other irregularities.
45 45 45
Audit Committee
From left
Dato Vaseehar Hassan bin Abdul Razack Abdul Khudus bin Mohd Naaim (Chairman) Dato Zulkiy @ Ibrahim bin Ab Rahman Shamsudin @ Samad bin Kassim
46 46
FORMATION OF THE AUDIT COMMITTEE The Audit Committee was formed on 24 October 2000. TERMS OF REFERENCE Duties, Responsibilities and Authority To review and report the following to the Board of Directors of Ingress Corporation Berhad:1. With regards to the external auditor, their audit plan, their evaluation of the system of internal controls, their audit report including reports and management letters thereon and the extent of assistance rendered by the company ofcials to them. 2. With regards to the internal audit function, the adequacy of its scope, functions, resources, the necessary authority to carry out its work, the internal audit programme, processes or investigation undertaken and whether or not appropriate action is taken on the recommendation of the internal audit function. 3. The review, appraisal or assessment of the performance of the internal audit function staff, approval for any appointment or termination of senior staff member of the internal audit function and keeping abreast of resignations of internal audit members. 4. The quarterly and nancial year end nancial statements with emphasis on changes in or implementation of major accounting policy changes, signicant and unusual events and adherence to accounting standards and other legal requirements. 5. Any related party transaction and conict of interest situation that may arise within the Group or the Company including any transaction, procedure or course of conduct that raises question of management integrity. 6. The performance of the external auditors and if in their opinion (supported by grounds) the external auditor is not suitable for reappointment; their recommendation to nominate a person or persons as external auditors and any letters of resignation from the external auditors. 7. Any vacancy in the audit committee so that the vacancy be lled within 3 months.
47
In performing its functions and duties, the Committee shall:1. Have the authority to investigate any matters within its terms of reference and have the resources which it needs to do so without any restriction on access to any information pertaining to the Group and the Company. 2. Have direct communication channels with the external auditors and obtain independent professional or other advice and have meeting with the external auditors without the presence of any executive directors at least once in a nancial year. 3. Report to Bursa Malaysia with regard to breaches of listing requirements should the Committee consider that a matter reported to the Board of Directors has not been satisfactorily resolved. 4. Be reviewed by the Board of Directors in term of ofce and performance of the committee and each of its members at least once every 3 nancial years to determine whether the duties are carried out in accordance with the terms of reference. MEETINGS The Committee meets four times annually, or more whenever necessary. Meetings will normally be attended by the Group Financial Controller, the Head of the Internal Audit Department and a representative of the external auditor (if required). Heads of operation units or other Board members may also be called upon to attend meetings. Meeting with the external auditors which is not attended by any executive directors are held twice in a nancial year. During the nancial year, the Committee met for seven times for the following purposes:a. To review the draft quarterly nancial statements and recommending the same to be considered and approved by the Board of Directors for the purpose of making announcements to the Bursa Malaysia. b. To review the nancial year end audited nancial statements and the external auditors management letter and management response thereon. c. To discuss with external auditors the audit plan and scope for the nancial year as well as the audit procedures to be utilised. d. To review the internal audit departments scope of work, adequacy of resources and coordination with the external auditors. e. To review the reports from the internal audit department and following up on corrective actions taken on issues raised.
48
I n g r e s s C o r p o r a tio n Be r h a d
INTERNAL AUDIT FUNCTIONS The Internal Audit functions of the Group and the Company are undertaken by its Internal Audit Department, which reports directly to the Audit Committee. The main role of the Internal Audit Department is to review and assess the effectiveness of the internal control systems and assisting the Group and the Company in its risk management. During the nancial year, the Committee had received fteen (15) reports on the assessment of the Groups internal control from the internal audit department.
49
50
I n g r e s s C o r p o r a tio n Be r h a d
Internal control weaknesses identied during the period had been addressed and none of these weaknesses have resulted in any material losses, contingencies that would require disclosure in the Annual Report. This statement is made in accordance with the resolution of the Board dated 25 May 2011.
51
52
I n g r e s s C o r p o r a tio n Be r h a d
(vi)
(vii) Share Sale Agreement dated 27 January 2011 for the acquisition of 10% equity shares in PT Ingress Malindo Ventures by IPSB. (viii) Sale and Purchase of Shares Agreement dated 16 February 2011 for the disposal of the entire 49% equity shares owned by the Company in Maju Nusa Sdn Bhd. 10. Revaluation Policy Revaluations are made at least once in every three years based on a valuation by an independent valuer on an open market value basis. Any revaluation increase is credited to equity as a revaluation surplus, except to the extent that it reverses a revaluation decreases for the same asset previously recognised as an expense.
53
Incorporating CSR into our yearly programmes has always been an on-going practice within the Company, even before the requirement by Bursa Malaysia to disclose CSR activities came into place. The Group believes the improvement in the conditions surrounding our stakeholders, employees, society and the environment is vital to the growth of the Group. Our corporate social responsibility covers the following key areas:Occupational health and safety Written policies, including any updates as well as any training on occupational health and safety matters are provided to employees. Health and safety activities are also carried out periodically to create awareness and to educate employees on occupational health and safety related matters. Employee welfare and development As of March 2011, the Group has approximately 2,121 employees spread throughout ASEAN in Malaysia, Thailand and Indonesia. Training is provided to the employees based on the training need analysis carried out at the end of each year. The training comprises both technical and soft-skills. Employees are also provided with medical and healthcare insurance and adequate leave and compensation programs which commensurate with their rank and level of employments. Further, the Group acknowledges the need to provide a healthy and balanced lifestyle to its employees. In this aspect, the Group encourages and supports the activities organised by Kelab Kakitangan Ingress such as family day, social events and sports activities. Community welfare The Group is active and aware for the welfare of the community by supporting social objectives in the communities. During the nancial year, zakat contributions were given to the under privileged communities in Malaysia, Thailand and Indonesia as well as donations channelled to various non-protable institutions, charitable organisations and religious institutions. Environment preservation The Group emphasises compliance with environmental laws governing plant operations, maintenance and improvement in areas relating to environmental standards, emission standards, energy conservation, housekeeping and storage methods, noise level management and treatment of plant efuents and waste water at all our factories operating locally and abroad. Education and training The Group participates in providing industrial and practical training for undergraduates from local institutes of higher learning as a part of its corporate contribution towards education, in line with its belief that education plays a key role in nation building. Furthermore, Ingress remains a sponsor to Perpustakaan Dar Nur al-Zahra, a public library in Kota Bharu, Kelantan and continues to make annual contributions for its upkeep and running.
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I n g r e s s C o r p o r a tio n Be r h a d
Certication
ISO / TS 16949 : 2009
Sirim Cert No: AR 3219 IATF Cert No: 0102166 Serial No: 0235 For IESB
Sirim Cert No: AR 3220 IATF Cert No: 0102167 Serial No: 0236 For IPSB
Sirim Cert No: AR 3221 IATF Cert No: 0102165 Serial No: 0234 For ITSB
Cert No: TS-2006-0253 Cert No: 01111033571/01 Cert No: 01111033571/02 Cert No: AR 4185 IATF Cert No: 0093571 IATF Cert No: 0121675 IATF Cert No: 0121674 IATF Cert No: 0091719 For FCT For IAV (Rayong) For IAV (Ayutthaya) For PTIMV
55
PAGE
64 - 66 67 67 68 - 69 70 71 - 72 73 74 - 75 76 77 78 79 80 - 155
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I n g r e s s C o r p o r a tio n Be r h a d
PRINCIPAL ACTIVITIES
The principal activities of the Company are investment holding and the provision of management services. The principal activities of the subsidiaries are described in Note 15 to the nancial statements. There have been no signicant changes in the nature of the principal activities during the nancial year.
RESULTS
Group RM Prot from continuing operations, net of tax Prot attributable to: Owners of the parent Minority interests 29,782,789 17,124,330 12,658,459 29,782,789 Company RM 3,325,680 3,325,680 3,325,680
There were no material transfers to or from reserves or provisions during the nancial year other than as disclosed in the nancial statement. In the opinion of the directors, the results of the operations of the Group and of the Company during the nancial year were not substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
No dividend has been paid or declared by the Company since the end of the previous nancial year. The directors do not recommend the payment of any dividend for the current nancial year.
DIRECTORS
The names of the directors of the Company in ofce since the date of the last report and at the date of this report are: Shamsudin @ Samad bin Kassim Datuk Rameli bin Musa Dato Vaseehar Hassan bin Abdul Razack Dato Zulkiy bin Ab Rahman Abdul Khudus bin Mohd Naaim Ungku Farid bin Ungku Abd Rahman Abdul Rahim bin Haji Hitam
DIRECTORS BENEFITS
Neither at the end of the nancial year, nor at any time during that nancial year, did there subsist any arrangement to which the Company was a party, whereby the directors might acquire benets by means of acquisition of shares in or debentures of the Company or any other body corporate. Since the end of the previous nancial year, no director has received or become entitled to receive a benet (other than benets included in the aggregate amount of emoluments received or due and receivable by the directors or the xed salary of a full-time employee of the Company as shown in Note 10 to the nancial statements) by reason of a contract made by the Company or a related corporation with any director or with a rm of which he is a member, or with a company in which he has a substantial nancial interest, except as disclosed in Note 32 to the nancial statements.
65
DIRECTORS INTERESTS
According to the register of directors shareholdings, the interests of directors in ofce at the end of the nancial year in shares in the Company and its related corporations during the nancial year were as follows: <--------------------- Number of Ordinary Shares of RM1 Each ----------------------> 1 February 31 January 2010 Acquired Sold 2011 Direct interest: Ordinary shares of the Company Shamsudin @ Samad bin Kassim Datuk Rameli bin Musa Dato Vaseehar Hassan bin Abdul Razack Abdul Rahim bin Haji Hitam Ungku Farid bin Ungku Abd Rahman Indirect interest: Ordinary shares of the Company Datuk Rameli bin Musa 15,360,000 15,360,000 20,000 8,602,800 12,000 6,000 571,200 30,000 50,000 8,602,800 12,000 6,000 571,200
Datuk Rameli bin Musa, by virtue of his interest in shares of the Company is also deemed interested in shares of all the Companys subsidiaries to the extent the Company has an interest. The other directors in ofce at the end of the nancial year, did not have any interest in shares in the Company and its related corporations during the nancial year.
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I n g r e s s C o r p o r a tio n Be r h a d
SIGNIFICANT EVENTS
In addition to the signicant events disclosed elsewhere in this report, other signicant events are disclosed in Note 15, 16 and 23 to the nancial statements.
SUBSEQUENT EVENTS
Details of subsequent events are disclosed in Note 36 to the nancial statements.
AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in ofce. Signed on behalf of the Board in accordance with a resolution of the directors dated 25 May 2011.
67
Statement by Directors
Statutory Declaration
Subscribed and solemnly declared by the above named Affandi bin Mokhtar at Kuala Lumpur in Wilayah Persekutuan on 25 May 2011.
Before me, R. Vasugi Ammal (No: W 480) Commissioner for Oaths Kuala Lumpur
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I n g r e s s C o r p o r a tio n Be r h a d
We have audited the nancial statements of Ingress Corporation Berhad, which comprise the statements of nancial position as at 31 January 2011 of the Group and of the Company, and the statements of comprehensive income, statements of changes in equity and statement of cash ow of the Group and of the Company for the nancial year then ended, and a summary of signicant accounting policies and other explanatory notes, as set out on pages 70 to 155. Directors responsibility for the nancial statements The directors of the Company are responsible for the preparation and fair presentation of these nancial statements in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of nancial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors responsibility Our responsibility is to express an opinion on these nancial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the nancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the nancial statements. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the nancial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entitys preparation and fair presentation of the nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the nancial statements. We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the nancial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the nancial position of the Group and of the Company as at 31 January 2011 and of their nancial performance and cash ows for the nancial year then ended.
69
OTHER MATTERS The supplementry information set out in Note 38 on page 156 is disclosed to meet the requirement of Bursa Malaysia Securities Berhad. The directors are responsible for the preparation of the supplementry information in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Prots or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, as issued by the Malaysian Institute of Accountants (MIA Guidance) and the directive of Bursa Malaysia Securities Berhad. In our opinion, the supplementary information is prepared, in all material respects, in accordance with the MIA Guidance and the directive of Bursa Malaysia Securities Berhad. This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Ernst & Young AF: 0039 Chartered Accountants Kuala Lumpur, Malaysia 25 May 2011
Nik Rahmat Kamarulzaman bin Nik Ab. Rahman No. 1759/02/12(J) Chartered Accountant
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I n g r e s s C o r p o r a tio n Be r h a d
Revenue Cost of sales Gross prot Other items of income Interest / nance income Other income Other items of expense Administrative expenses Interest / nance costs Depreciation and amortisation Share of results of associates Prot before tax from continuing operations Income tax expense Prot net of tax Other comprehensive (expenses) / income Revaluation of land and buildings Foreign currency translation Cash ow hedges Other comprehensive (expenses) / income for the nancial year, net of tax Total comprehensive income for the nancial year
3 4
5 6
597,704 17,906,314
331,976 11,386,463
8 11
Total comprehensive income attributable to: Owners of the parent Minority interests
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
71
Note
2011 RM
Assets Non-current assets Property, plant and equipment Intangible assets Investment in associates Investment securities Deferred tax assets
13 14 16 17 28
Current assets Inventories Trade receivables Other receivables Tax recoverable Cash and bank balances Assets of disposal group classied as held for sale
18 19 19 21 22
Total assets
72
I n g r e s s C o r p o r a tio n Be r h a d
Equity and liabilities Current liabilities Borrowings / nancing Trade payables Other payables Current tax payable Liabilities directly associated with disposal group classied as held for sale
23 25 25
22
Net current assets / (liabilities) Non-current liabilities Borrowings / nancing Deferred tax liabilities
23 28
Total liabilities Net assets Equity attributable to owners of the parent Share capital Reserves Minority interests Total equity Total equity and liabilities
26 27
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
73
Total RM
26,113,864 113,911,616
36,924,727 144,798,931
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
74
I n g r e s s C o r p o r a tio n Be r h a d
75
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
76
I n g r e s s C o r p o r a tio n Be r h a d
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
77
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
78
I n g r e s s C o r p o r a tio n Be r h a d
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
79
The accompanying accounting policies and explanatory notes form an integral part of the nancial statements.
80
I n g r e s s C o r p o r a tio n Be r h a d
NOTES TO THETHE FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
81
82
I n g r e s s C o r p o r a tio n Be r h a d
As restated RM000
11,124
(1,705 )
9,419
(1,705 )
(1,705 )
(e) FRS 117: Leases Prior to 1 January 2010, for all leases of land and buildings, if title is not expected to pass to the lessee by the end of the lease term, the lessee normally does not receive substantially all of the risks and rewards incidental to ownership. Hence, all leasehold land held for own use was classied by the Group as operating lease and where necessary, the minimum lease payments or the up-front payments made were allocated between the land and the building elements in proportion to the relative fair values for leasehold interests in the land element and building element of the lease at the inception of the lease. The up-front payment represented prepaid lease payments and were amortised on a straight-line basis over the lease term. The amendments to FRS 117: Leases clarify that leases of land and buildings are classied as operating or nance leases in the same way as leases of other assets. They also clarify that the present value of the residual value of the property in a lease with a term of several decades would be negligible and accounting for the land element as a nance lease in such circumstances would be consistent with the economic position of the lessee. Hence, the adoption of the amendments to FRS 117 has resulted in certain unexpired land leases to be reclassied as nance leases. The Group has applied this change in accounting policy retrospectively and certain comparatives have been restated.
NOTES TO THETHE FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
83
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.2 Changes in accounting policies (continued)
(e) FRS 117: Leases (continued) The following are effects to the consolidated statement of nancial position as at 31 January 2011 arising from the above change in accounting policy: Group 2011 RM000 Increase / (decrease) in: Property, plant and equipment Prepaid land lease payment The following comparatives as at 31 January 2010 have been restated: As previously reported (audited) RM000 Consolidated statement of nancial position Non-current assets Property, plant and equipment Prepaid land lease payment Consolidated statement of cash ow Depreciation of property, plant and equipment Amortisation of prepaid land lease payment 50,350 510 510 (510 ) 50,860 -
15,874 (15,874 )
Adjustments RM000
As restated RM000
314,306 16,265
16,265 (16,265 )
330,571 -
2.3
Standards issued but not yet effective The Group has not adopted the following standards and interpretations that have been issued but not yet effective: Effective for nancial periods beginning on or after 1 March 2010 Amendments to FRS 132 Classication of Rights Issues
Effective for nancial periods beginning on or after 1 July 2010 FRS 1 FRS 3 Amendments to FRSs FRS 2 FRS 5 FRS 127 FRS 138 Amendments to IC Interpretation 9 IC Interpretation 12 IC Interpretation 16 IC Interpretation 17 First-time Adoption of Financial Reporting Standards Business Combinations (Revised) Share-based Payment Non-current Assets Held for Sale and Discontinued Operations Consolidated and Separate Financial Statements Intangible Assets Reassessment of Embedded Derivatives Service Concession Arrangements Hedges of a Net Investment in a Foreign Operation Distributions of Non-cash Assets to Owners
84
I n g r e s s C o r p o r a tio n Be r h a d
Effective for nancial periods beginning on or after 1 July 2011 IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments
Effective for nancial periods beginning on or after 1 January 2012 FRS 124 IC Interpretation 15 Related Party Disclosures (Revised) Agreements for the Construction of Real Estate
Except for the changes in accounting policies arising from the adoption of the revised FRS 3 and the Amendments to FRS 127, as well as the new disclosures required under the Amendments to FRS 7, the directors expect that the adoption of the other standards and interpretations above will have no material impact on the nancial statements in the period of initial application. The nature of the impending changes in accounting policy on adoption of the revised FRS 3 and the Amendments to FRS 127 are described below. Revised FRS 3: Business Combinations and Amendments to FRS 127: Consolidated and Separate Financial Statements The revised standards are effective for annual periods beginning on or after 1 July 2010. The revised FRS 3 introduces a number of changes in the accounting for business combinations occurring after 1 July 2010. These changes will impact the amount of goodwill recognised, the reported results in the period that an acquisition occurs, and future reported results. The Amendments to FRS 127 require that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as an equity transaction. Therefore, such transactions will no longer give rise to goodwill, nor will they give rise to a gain or loss. Furthermore, the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. Other consequential amendments have been made to FRS 107: Statement of Cash Flows, FRS 112: Income Taxes, FRS 121: The Effects of Changes in Foreign Exchange Rates, FRS 128: Investments in Associates and FRS 131: Interests in Joint Ventures. The changes from revised FRS 3 and Amendments to FRS 127 will affect future acquisitions or loss of control and transactions with minority interests. The standards may be early adopted. However, the Group does not intend to early adopt. 2.4 Basis of consolidation The consolidated nancial statements comprise the nancial statements of the Company and its subsidiaries as at the reporting date. The nancial statements of the subsidiaries used in the preparation of the consolidated nancial statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied to on the transactions and events in similar circumstances. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full.
NOTES TO FINANCIAL STATEMENTS NOTES TO THETHE FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
85
86
I n g r e s s C o r p o r a tio n Be r h a d
NOTES TO THETHE FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
87
Tooling equipment utilised for specic product model included in plant and machinery are depreciated using units of production method. Assets under construction are not depreciated as these assets are not yet available for use. The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. The residual value, useful life and depreciation method are reviewed at the end of each nancial year, and adjusted prospectively, if appropriate. An item of property, plant and equipment is derecognised upon disposal or when no future economic benets are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the statements of comprehensive income in the nancial year the asset is derecognised.
88
I n g r e s s C o r p o r a tio n Be r h a d
NOTES TO THETHE FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
89
90
I n g r e s s C o r p o r a tio n Be r h a d
NOTES TO THETHE FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
91
92
I n g r e s s C o r p o r a tio n Be r h a d
NOTES TO FINANCIAL STATEMENTS NOTES TO THETHE FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
93
94
I n g r e s s C o r p o r a tio n Be r h a d
NOTES TO THETHE FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
95
96
I n g r e s s C o r p o r a tio n Be r h a d
NOTES TO THETHE FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
97
98
I n g r e s s C o r p o r a tio n Be r h a d
Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable prot will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised except: where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting prot nor taxable prot or loss; and in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable prot will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufcient taxable prot will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable prot will allow the deferred tax assets to be utilised.
NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 JANUARY 2011 31 JANUARY 2011
99
2.25
Segment reporting For management purposes, the Group is organised into operating segments based on their products and services which are independently managed by the respective segment managers responsible for the performance of the respective segments under their charge. The segment managers report directly to the management of the Company who regularly review the segment results in order to allocate resources to the segments and to assess the segment performance. Additional disclosures on each of these segments are shown in Note 37, including the factors used to identify the reportable segments and the measurement basis of segment information.
2.26
Contingencies A contingent liability or asset is a possible obligation or asset that arises from past events and whose existence will be conrmed only by the occurrence or non-occurrence of uncertain future event(s) not wholly within the control of the Group and of the Company. Contingent liabilities and assets are not recognised in the statements of nancial position of the Group and of the Company.
100
I n g r e s s C o r p o r a tio n Be r h a d
101
3. REVENUE
Group 2011 RM Sales of goods Construction contracts Rendering of services Dividend income from subsidiaries Management fees from subsidiaries 679,533,943 81,642,756 761,176,699 2010 RM 560,346,162 90,199,106 76,899 650,622,167 2011 RM 4,666,667 9,141,550 13,808,217 Company 2010 RM 2,000,000 2,181,504 4,181,504
4. COST OF SALES
Group 2011 RM Costs of goods sold Construction contract costs Costs of services rendered 572,205,892 79,690,153 651,896,045 2010 RM 474,248,700 82,305,422 45,994 556,600,116
597,704
331,976
5,175,923
1,907,239
102
I n g r e s s C o r p o r a tio n Be r h a d
131,516 131,516
103
9.
Included in employee benets expense of the Group and of the Company are executive directors remuneration amounting to RM6,119,113 (2010: RM6,426,678) and RM626,162 (2010: RM518,188) respectively, as further disclosed in Note 10.
104
I n g r e s s C o r p o r a tio n Be r h a d
Other directors Executive: Salaries and other emoluments Fees Bonus Benets-in-kind
789,262
693,488
Total Analysis excluding benets-in-kind: Total executive directors remuneration Total non-executive directors remuneration Total directors remuneration
105
1,166,667 1,166,667
949,131 949,131
Deferred tax (Note 28): Relating to origination and reversal of temporary differences Overprovision in prior years
1,166,667
949,131
106
I n g r e s s C o r p o r a tio n Be r h a d
(3,256,549 ) (324,132 )
(5,134,225 ) (651,833 )
(236,171 )
1,166,667
Domestic income tax is calculated at the Malaysian statutory tax rate of 25% (2010: 25%) of the estimated assessable prot / (loss) for the nancial year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.
107
147,249 17,534 -
476,810
12.
108
I n g r e s s C o r p o r a tio n Be r h a d
Group At 31 January 2011 Cost / valuation At 1 February 2010 As previously stated Effects of adopting the amendmends to FRS 117 As restated Additions Disposals Write-offs Transfer to assets of disposal group classied as held for sale (Note 22(a)) Reclassication Adjustments Exchange differences At 31 January 2011 Representing: Cost Valuation
Other assets ** RM
Total RM
(2,707,934) 163,008,042
566,373,620 566,373,620
35,904,862 35,904,862
55,709,024 55,709,024
109
Group (continued) At 31 January 2011 Accumulated depreciation and impairment At 1 February 2010 As previously stated Effects of adopting the amendments to FRS 117 As restated Charge for the nancial year Disposals Write-offs Transfer to assets of disposal group classied as held for sale (Note 22(a)) Adjustments Exchange differences At 31 January 2011 Net carrying amount Cost Valuation
Other assets ** RM
Total RM
(642,860) 16,380,768
86,135,740 86,135,740
35,904,862 35,904,862
12,503,756 12,503,756
110
I n g r e s s C o r p o r a tio n Be r h a d
Group (continued) At 31 January 2010 Cost/valuation At 1 February 2009 As previously stated Effects of adopting the amendments to FRS 117 As restated Additions Disposals Write-offs Revaluation surplus Transfer to assets of disposal group classied as held for sale (Note 22(b)) Reclassication Adjustments Exchange differences
Other assets ** RM
Total RM
(9,796,958) 533,786
57,444 55,630,180
At 31 January 2010 (as restated) 163,958,452 Representing: Cost Valuation 22,442,443 141,516,009 163,958,452
584,967,001 584,967,001
14,310,315 14,310,315
55,630,180 55,630,180
111
Group (continued) At 31 January 2010 Accumulated depreciation and impairment At 1 February 2009 As previously stated Effects of adopting the amendments to FRS 117 As restated Charge for the nancial year Disposals Write-offs Elimination of accumulated depreciation on revaluation surplus Transfer to assets of disposal group classied as held for sale (Note 22(b)) Exchange differences At 31 January 2010 (as restated) Net carrying amount Cost Valuation
Other assets ** RM
Total RM
(1,685,020)
(1,685,020)
286,923 436,201,544
46,339 38,875,109
148,765,457 148,765,457
14,310,315 14,310,315
16,755,071 16,755,071
** Other assets comprise motor vehicles, ofce equipment, furniture and ttings, renovations and xtures.
112
I n g r e s s C o r p o r a tio n Be r h a d
Group At 31 January 2011 Cost / valuation At 1 February 2010 As previously stated Effects of adopting the amendments to FRS 117 As restated Additions Exchange differences At 31 January 2011 Representing: Cost Valuation
Freehold land RM
Freehold buildings RM
Total RM
16,536,986 16,536,986
19,979,775 19,979,775
62,593,469 62,593,469
Accumulated depreciation At 1 February 2010 As previously stated Effects of adopting the amendments to FRS 117 As restated Charge for the nancial year Exchange differences At 31 January 2011 Net carrying amount Cost Valuation 2,406,300 55,028,589 57,434,889 15,873,554 15,873,554 19,979,775 19,979,775 53,339,056 53,339,056 18,279,854 128,347,420 146,627,274 4,753,952 1,750,231 (41,260) 6,462,923 750,348 750,348 165,621 (252,537) 663,432 7,714,496 1,888,980 (349,063) 9,254,413 750,348 13,218,796 3,804,832 (642,860) 16,380,768 4,753,952 7,714,496 12,468,448
113
Group (continued) At 31 January 2010 Cost/valuation At 1 February 2009 As previously stated Effects of adopting the amendments to FRS 117 As restated Additions Revaluation surplus Transfer to assets of disposal group classied as held for sale (Note 22(b)) Exchange differences At 31 January 2010 (as restated) Representing: Cost Valuation
Freehold land RM
Freehold buildings RM
Total RM
26,377,959 26,377,959 -
292,277 62,305,258
(123,600) 64,151,321
(68,812)
17,014,922 17,014,922
20,486,951 20,486,951
64,151,321 64,151,321
114
I n g r e s s C o r p o r a tio n Be r h a d
Group (continued) At 31 January 2010 Accumulated depreciation At 1 February 2009 As previously stated Effects of adopting the amendments to FRS 117 As restated Charge for the nancial year Elimination of accumulated depreciation on revaluation surplus Transfer to assets of disposal group classied as held for sale (Note 22(b)) Exchange differences At 31 January 2010 (as restated) Net carrying amount Cost Valuation
Freehold land RM
Freehold buildings RM
Total RM
(1,685,020)
(1,685,020)
57,866 4,753,952
(197,918) 750,348 -
(13,694) 7,714,496
16,264,574 16,264,574
20,486,951 20,486,951
56,436,825 56,436,825
115
Company At 31 January 2011 Cost At 1 February 2010 Additions Disposals Write offs At 31 January 2011 Accumulated depreciation At 1 February 2010 Charge for the nancial year Disposals Write offs At 31 January 2011 Net carrying amount At 31 January 2010 Cost At 1 February 2009 Additions Disposals At 31 January 2010 Accumulated depreciation At 1 February 2009 Charge for the nancial year Disposals At 31 January 2010 Net carrying amount
Renovations RM
Motor vehicles RM
Total RM
568,049 568,049
160,361 160,361
116
I n g r e s s C o r p o r a tio n Be r h a d
Description of Property
2009 2009 2009 2009 2009 2009 2009 2009 2009 2009
Land and factory at Bangi Land and factory at Nilai Land and factory at Bukit Beruntung Land and building at Sungai Penchala Land and factory at Rayong, Thailand Land and factory at Ayutthaya, Thailand Land and factory at Cikarang, Indonesia Staff accommodation at Nilai Staff accommodation at Bukit Beruntung Land at Nilai
Open market value Open market value Open market value Open market value Open market value Open market value Open market value Open market value Open market value Open market value
Had the revalued land and buildings been carried at historical costs, the net book value of the land and buildings that would have been included in the nancial statements of the Group as at 31 January 2011 would have been RM97,244,424 (2010: RM100,063,975). (b) Net book values of property, plant and equipment held under hire purchase arrangements are as follows: Group 2011 RM Motor vehicles Plant and machinery (c) 1,532,802 741,803 2010 RM 1,276,674 2,093,269 2011 RM 789,160 Company 2010 RM -
During the nancial year, the Group and the Company acquired property, plant and equipment of which RM816,373 (2010: RM149,303) and RM816,373 (2010: Nil) respectively were aquired by means of hire purchase, nance lease and Al-Ijarah lease arrangements.
117
(e)
The net book values of property, plant and equipment pledged to nancial institutions for other borrowings / nancing as referred to in Note 23 are as follows: Group 2011 RM Freehold land Freehold buildings Plant and machinery 10,529,775 23,816,560 55,335,331 89,681,666 2010 RM 11,036,951 26,305,152 63,024,344 100,366,447
Group Cost At 31 January 2009 Additions Write-offs Exchange differences At 31 January 2010 Additions Write-offs Transfer to assets of disposal group classied as held for sale (Note 22(a)) Exchange differences At 31 January 2011
Goodwill RM
Total RM
9,633,970 196,500 (85,164 ) (53,415 ) 9,691,891 189,659 (8,492 ) (150,642 ) (232,327 ) 9,490,089
10,206,971 196,500 (85,164) (53,415) 10,264,892 189,659 (8,492) (150,642) (232,327) 10,063,090
118
I n g r e s s C o r p o r a tio n Be r h a d
Group (continued) Accumulated amortisation and impairment At 31 January 2009 Amortisation Write-offs Impairment loss Exchange differences At 31 January 2010 Amortisation Write-offs Transfer to assets of disposal group classied as held for sale (Note 22(a)) Exchange differences At 31 January 2011 Net carrying amount At 31 January 2010 At 31 January 2011
Goodwill RM
Total RM
4,882,608 1,217,492 (85,164 ) (482,214 ) 5,532,722 673,187 (5,004 ) (90,758 ) (86,022 ) 6,024,125
5,155,965 1,217,492 (85,164) 221,792 (482,214) 6,027,871 673,187 (5,004) (90,758) (86,022) 6,519,274
77,852 77,852
4,159,169 3,465,964
4,237,021 3,543,816
Computer Software Company Cost At 1 February Additions At 31 January Accumulated amortisation At 1 February Amortisation At 31 January Net carrying amount At 31 January 9,882 16,627 52,810 6,745 59,555 41,122 11,688 52,810 69,437 69,437 67,787 1,650 69,437 2011 RM 2010 RM
119
120
I n g r e s s C o r p o r a tio n Be r h a d
Details of the subsidiaries are as follows: Effective equity interest held 2011 2010 % % 70 70
Name of subsidiaries
Country of incorporation
Principal activities
Malaysia
Manufactures and supplies complete automotive door assemblies (door-in-white) and manufactures and assembles medium to high tonnage press parts Manufactures components automotive
Thailand
62.5
73
Thailand
100
100
Manufactures and supplies metal components for the automotive industry utilising ne blanking technology Manufactures components automotive
Indonesia
81
72
Malaysia
100
100
Manufactures and supplies rollformed plastic mouldings and weather-strips, wire-harness and provision of management services Manufactures and supplies rollformed metal automotive door sash (door frame) and related components Provides design, stamping, fabrication and project management of small and medium dies, assembly jigs and checking xtures in automotive industry Provides engineering services in the eld of computer aided design, manufactures tools, jigs and dies and undertakes comprehensive product development work
Malaysia
90
90
Malaysia
70
70
Malaysia
100
100
121
Name of subsidiaries
Country of incorporation
Principal activities
Malaysia
Provides engineering solutions in industrial automation through design and fabrication as well as manufactures and supplies sub-systemaor system for the applications in production and testing Premium motor vehicle dealership, services center and spare parts sales Provides engineering services for the power and utility industry Provides electrical engineering services for power and utility industry, particularly in building, infrastructure and distribution network Provides engineering services and supply of instrumentation equipment for oil and gas industry. Dormant Manufactures and supplies panelbased electrical equipment and provides electrical engineering services for power and utility industry Dormant
Malaysia
100
100
Malaysia
100
100
Malaysia
95
95
Malaysia
100
100
Malaysia Malaysia
100 80
100 80
Ingress Environmental Sdn Bhd * PT Ingress Amdec Environmental * Matrix Hydro Generation Sdn Bhd * Ingress Automotive Electrical Sdn Bhd * PT Bina Selaras Tradindo *
Malaysia
100
100
Indonesia
51
51
Dormant
Malaysia Malaysia
70 100
70 100
Dormant
* **
Audited by rms of auditors other than Ernst & Young. Classied as disposal group classied as held for sale as disclosed in Note 22(a).
122
I n g r e s s C o r p o r a tio n Be r h a d
123
Details of associates are as follows: Effective equity interest held 2011 2010 % %
Name of associates
Country of incorporation
Principal activities
Balfour Beatty Rail Sdn Bhd * Ingress Mayur Auto Ventures Private Limited *
Malaysia
30
49
Rail electrication works and maintenance activities Manufactures and supplies rollformed plastic mouldings
India
40
Malaysia
49
Telecommunication
Malaysia
50
50
Dormant
124
I n g r e s s C o r p o r a tio n Be r h a d
65,907,792 (2,626,916)
65,779,321 1,005,547
Disposal of shares in an associate company On 8 April 2010, the Group via its subsidiary company, Multi Discovery Sdn Bhd disposed off 19% or 142,500 ordinary shares in Balfour Beatty Rail Sdn Bhd for a cash consideration of RM11,400,000 to Balfour Beatty Netherlands B.V., a company incorporated in Netherlands. The disposal of shares resulted in a gain on disposal of RM7,619,088. Subscription of shares in an associate company On 16 December 2010, the Group via its subdiary company, Ingress Engineering Sdn Bhd subscribed for 2,657,870 new Ingress Mayur Auto Ventures Private Limited (IMAPL) ordinary shares of Indian Rupee (INR) 10 each representing 40% equity interest in IMAPL.
125
18. INVENTORIES
Group 2011 RM At cost: Raw materials and consumables Work-in-progress Finished goods Trading stock Spare parts At net realisable value: Finished goods 2010 RM
86,374,447 12,425,262 98,799,709 Due from customers on contracts (Note 20) 36,605,168 135,404,877 Less: Allowance for impairment (9,899,168 ) Trade receivables, net 125,505,709 Other receivables Due from subsidiaries Loan to subsidiaries Due from associates Deposits Prepayments Sundry receivables Less: Allowance for impairment Other receivables, net
126
I n g r e s s C o r p o r a tio n Be r h a d
(a)
Trade receivables Trade receivables are non-interest / nance bearing and are generally on 30 to 90 days (2010: 30 to 90 days) terms. They are recognised at their original invoice amounts which represent their fair values on initial recognition. Included in trade receivables is an amount of RM46,229 (2010: RM49,261) due from a foreign corporate shareholder of subsidiaries. The Group signicant concentration of credit risk are as disclosed in Note 34(a). Aging analysis of trade receivables Aging analysis of the Groups trade receivables is as follows: Group 2011 RM Neither past due nor impaired 1 to 30 days past due not impaired 31 to 60 days past due not impaired 61 to 90 days past due not impaired 91 to 120 days past due not impaired More than 121 days past due not impaired Impaired 81,380,369 3,527,739 2,162,117 1,415,985 414,331 7,520,172 9,899,168 98,799,709 2010 RM 90,621,726 1,379,868 503,079 647,074 2,661,300 5,191,321 10,093,358 105,906,405
127
Movement in allowance accounts: At 1 February Charge for the nancial year Written off At 31 January 10,093,358 189,101 (383,291) 9,899,168 10,084,057 9,301 10,093,358
Trade receivables that are individually determined to be impaired at the reporting date relate to debtors that are in signicant nancial difculties and have defaulted on payments. These receivables are not secured by any collateral or credit enhancements.
128
I n g r e s s C o r p o r a tio n Be r h a d
Movement in allowance accounts: At 1 February Charge for the nancial year Written off At 31 January 2,398,235 152,646 (699,671) 1,851,210 1,333,657 1,064,578 2,398,235
Other receivables that are individually determined to be impaired at the reporting date relate to debtors that are in signicant nancial difculties and have defaulted on payments. These receivables are not secured by any collateral or credit enhancements.
129
Presented as: Due from customers on contract (Note 19) Due to customers on contract (Note 25)
Retention sums on contracts, included within trade receivables (Note 19) Retention sums on contracts, included within trade payables (Note 25)
12,425,262
12,403,945
2,086,200
2,527,378
The costs incurred to date on construction contracts include the following charges made during the nancial year: Group 2011 RM Interest / nance costs Rental of premises 599,874 90,586 2010 RM 207,990 68,588
130
I n g r e s s C o r p o r a tio n Be r h a d
Deposits with licensed banks of the Group amounting to RM14,669,773 (2010: RM12,410,350) are pledged to banks for credit facilities granted to certain subsidiaries as referred to in Note 23. Included in deposits with licensed banks of the Group and the Company amounting to RM3,452,998 (2010: Nil) are in relation to restricted cash placed in Sinking Fund Account and Finance Service Reserve Account for Syndicated CMTF-i. The weighted average interest / nance rate of deposits of the Group and of the Company is 2.5% (2010: 1.9%) per annum and the average maturity of deposits of the Group and of the Company is 30 days (2010: 30 days).
131
Current assets Inventories Trade receivables Other receivables Cash and bank balances
Assets of disposal group classied as held for sale Non-current liabilities Borrowings / nancing Current liabilities Borrowings / nancing Trade payables Other payables
9,177
Liabilities directly associated with disposal group classied as held for sale
132
I n g r e s s C o r p o r a tio n Be r h a d
Unsecured: Bank overdrafts Revolving credits Bills payable and trust receipts Term loans - Bridging loans Sukuk Al-Ijarah
133
134
I n g r e s s C o r p o r a tio n Be r h a d
Maturity of borrowings / nancing (excluding hire purchase, lease payables and Sukuk Al-Ijarah): Within one year More than 1 year and less than 2 years More than 2 years and less than 5 years More than 5 years
5,002,245 5,002,245
139,997,500
The Groups and the Companys weighted average effective interest / nance rates per annum during the nancial year for borrowings / nancing excluding hire purchase and lease payables, are as follows: Group 2011 % Bank overdrafts Revolving credits Bills payable Trust receipts Term loans Syndicated CMTF-i Sukuk Al-Ijarah 7.3 5.7 3.4 7.3 5.9 7.8 7.0 2010 % 6.5 4.4 2.2 7.0 7.1 7.0 2011 % 7.1 5.3 7.8 7.0 Company 2010 % 6.5 4.4 7.0
The secured bank overdrafts, revolving credits and bills payable and trust receipt of the Group are secured by xed and oating charges over the deposits of certain subsidiaries as disclosed in Note 21.
135
136
I n g r e s s C o r p o r a tio n Be r h a d
Analysed as: (Note 23) Due within 12 months Due after 12 months 2,837,409 2,729,853 5,567,262 3,628,696 3,282,603 6,911,299 89,883 634,474 724,357 -
The hire purchase and lease payable of the Group and the Company bear interest / nance cost during the nancial year of 7.39% (2010: 7.65%) and 4.96% (2010: Nil) per annum respectively.
137
Total trade and other payables Add: Borrowings / nancing (Note 23) Total nancial liabilities carried at amortised cost
(a)
Trade payables Group 2011 RM Included in trade payables are the following: Due to a corporate shareholder of a foreign subsidiary 2010 RM
1,365,445
1,270,119
These amounts are non-interest / nance bearing. Trade payables are normally settled on 30 to 90 days (2010: 30 to 90 days) terms. (b) Other payables These amounts are non-interest / nance bearing. Other payables are normally settled on 30 to 90 days (2010: 30 to 90 days) terms. (c) Amount due to subsidiaries These amounts are unsecured, non-interest / nance bearing and are repayable on demand.
138
I n g r e s s C o r p o r a tio n Be r h a d
100,000,000
100,000,000
100,000,000
100,000,000
76,800,000
76,800,000
76,800,000
76,800,000
27.
RESERVES
Group 2011 RM Non-distributable: Share premium Revaluation reserves: At 1 February Foreign currency translation Revaluation increase, net of deferred tax At 31 January Foreign exchange reserves: At 1 February Foreign currency translation At 31 January Hedging reserves: At 1 February As previously stated Effect of adopting FRS 139 As restated Loss on cash ows hedges At 31 January 1,024,000 1,024,000 2010 RM 2011 RM Company 2010 RM
31,074,204
Distributable: Retained prots Total reserves 54,049,057 76,963,486 36,924,727 67,998,931 5,878,009 5,878,009 2,552,329 2,552,329
139
27.
RESERVES (CONTINUED)
The detailed movement of the above are highlighted in the statement of changes in equity. (a) Share premium Share premium arose from the issuance of ordinary shares at a price higher than the nominal value. (b) Revaluation reserve This reserve includes the cumulative net change in fair value of land and building above their cash consideration net of deferred tax. (c) Foreign exchange reserve The foreign exchange reserve represents exchange differences arising from the translation of the nancial statements of foreign subsidiaries whose functional currencies are different from that of the Groups presentation currency. (d) Hedging reserve The hedging reserve represents the cumulative portion of gains and losses on hedging instruments deemed effective in cash ows hedges of an associate company. (e) Retained prots Prior to the year of assessment 2008, Malaysian companies adopted the full imputation system. In accordance with the Finance Act 2007 which was gazetted on 28 December 2007, companies shall not be entitled to deduct tax on dividend paid, credited or distributed to its shareholders, and such dividends will be exempted from tax in the hands of the shareholders (single tier system). However, there is a transitional period of six years, expiring on 31 December 2013, to allow companies to pay franked dividends to their shareholders under limited circumstances. Companies also have an irrevocable option to disregard the Section 108 balance and opt to pay dividends under the single tier system. The change in the tax legislation also provides for the Section 108 balance to be locked-in as at 31 December 2007 in accordance with Section 39 of the Finance Act 2007. The Company did not elect for the irrevocable option to disregard the Section 108 balance. Accordingly, during the transitional period, the Company may utilise the credit in the Section 108 balance as at 31 December 2007 to distribute cash dividend payments to ordinary shareholdings as dened under the Finance Act 2007. As at 31 January 2011, the Company has sufcient credit in the Section 108 balance to franked dividends approximately RM4,853,000 (2010: RM4,795,000) out of its retained prots and to pay the balance of its retained earnings under the single tier system. As at 31 January 2011, the Company has tax exempt income account amounting to RM20,139,000 (2010: RM20,139,000) to distribute as tax exempt dividends, subject to agreement of the Inland Revenue Board.
140
I n g r e s s C o r p o r a tio n Be r h a d
(18,644 ) 18,644 -
(23,026) 23,026 -
Deferred tax liabilities of the Group: Accelerated Capital Allowances RM At 1 February 2010 Recognised in the consolidated statement of comprehensive income At 31 January 2011 At 1 February 2009 Recognised in the consolidated statement of comprehensive income Recognised in other comprehensive income At 31 January 2010 7,412,345 (6,887,211 ) 525,134 7,341,118 71,227 7,412,345
141
28.
Deferred tax liabilities of the Company: Accelerated Capital Allowances RM At 1 February 2010 Recognised in statement of comprehensive income At 31 January 2011 At 1 February 2009 Recognised in statement of comprehensive income At 31 January 2010 23,026 (4,382 ) 18,644 29,677 (6,651 ) 23,026
Deferred tax assets of the Company: Unused tax losses and unabsorbed allowances RM At 1 February 2010 Recognised in statement of comprehensive income At 31 January 2011 At 1 February 2009 Recognised in statement of comprehensive income At 31 January 2010 (23,026 ) 4,382 (18,644 ) (23,026 ) (23,026 )
142
I n g r e s s C o r p o r a tio n Be r h a d
The availability of the unused tax losses and unabsorbed allowances for offsetting against future taxable prots of the respective subsidiaries are subject to no substantial changes in shareholdings of those subsidiaries under Section 44(5A) and (5B) of Income Tax Act, 1967.
29.
CAPITAL COMMITMENTS
Group 2011 RM Capital expenditure: Approved and contracted for Authorised but not contracted for 14,927,941 27,704,890 42,632,831 2010 RM 42,730,628 65,238,089 107,968,717
30.
CONTINGENT LIABILITIES
Company 2011 RM Guarantees given to nancial institutions for facilities utilised by subsidiaries 2010 RM
137,195,585
311,899,221
In general, it has been the nancial institutions practice to accept a corporate guarantee to secure loan facility. It may be required together with other forms of securies. Acceptance of such guarantee by the nancial institution does not imply that special / lower interest / nance rate is also offered. It does however help the nancial insitution in credit evaluation process prior to the cility approval.
143
31.
MATERIAL LITIGATION
(a) Kuala Lumpur High Court Civil Suit No. S-22-147-2007 A subsidiary of the Group, namely Ingress Fabricators Sdn Bhd (IFSB) (the Plaintiff), had served a Writ of Summons & Statement of Claims (the Writ) dated 8 February 2007 led at the Kuala Lumpur High Court against Ramunia Fabricators Sdn Bhd (the Defendant). In this suit, IFSB is claiming for the following sums alleged to be due and owing by the Defendant to IFSB in respect of the contract to provide management, supervision, qualied manpower, tools, consumables and equipments: (i) (ii) (iii) The sum of RM1,494,700; Interest at the rate of 8% per annum on the said sum from 9 November 2006 until full settlement; Interest on all damages awarded at the rate of 8% per annum from the date of judgment until full settlement; Costs; and Such further or other relief that the Honorable Court deems t and proper to grant.
(iv) (v)
In ensuring compliance with the next Case Management directions, the amendment of Pleadings was led in second week of March, thus the sum of RM1,494,700 for variation works and acceleration costs is now reduced to RM1,350,939. The Amended Statement of Claims was endorsed on 11 April 2011. The next Case Management had been xed tentatively on 12 July 2011. Prior to this Case Management the Court is seriously considering another Case Management earlier. (b) Kuala Lumpur High Court Civil No. S22-424-2007 Ingress Fabricators Sdn Bhd (IFSB) (the Plaintiff), had served a Writ of Summons & Statement of Claims (the Writ) dated 25 April 2007 led at the Kuala Lumpur High Court against Ramunia Fabricators Sdn Bhd (the Defendant). In this suit, IFSB is claiming for the following sums alleged to be due and owing by the Defendant to IFSB in relation to the contract to provide structural works for Guntong E-Jacket, E8DR-A Substructure, E11P-B Substructure and E8DRA Topside: (i) (ii) (iii) (iv) The sum of RM3,794,912; The sum of RM198,129; The sum of RM235,732; Interest on all damages awarded at the rate of 8% per annum from the date of judgement until full settlement; Costs; and Such further or other relief that the Honorable Court deems t and proper to grant.
(v) (vi)
The next Case Management had been tentatively on 12 July 2011. Prior to this Case Management the Court is seriously considering another Case Management earlier.
144
I n g r e s s C o r p o r a tio n Be r h a d
(vi) (vii)
(viii) Interest at the rate of 8% per annum on the said sum from 18 December 2008 until the date of judgement; and (ix) Interest at the rate of 8% per annum from the date of judgement until full settlement.
The above suit against Ramunia has been consolidated with suit no. S-22-419-2010 on 9 November 2010. The next Case Management had been xed tentatively on 12 July 2011. Prior to this Case Management the Court is seriously considering another Case Management earlier. (d) Kuala Lumpur High Court Civil Suit No. S-22-419-2010 Ingress Fabricators Sdn Bhd (IFSB) (the Plaintiff), had served a Writ of Summons & Statement of Claims (the Writ) dated 13 May 2010 (after the Restraining Order leave application granted by court) led at the Kuala Lumpur High Court against Ramunia Fabricators Sdn Bhd (the Defendant). In this suit, IFSB is claiming for the following sums alleged to be due and owing by the Defendant to IFSB in relation to the contract E8DRA Topside (Piping) to provide management, supervision, qualied manpower, tools, consumables and equipments: (i) (ii) (iii) The work done under Main Contract of RM617,168; The retention sum of RM50,000; and The interest at rate of 8% per annum on the above from 9 November 2006 until full settlement.
The above suit against Ramunia has been consolidated with suit S-22-1134-2009 on 9 November 2010.
145
31.
146
I n g r e s s C o r p o r a tio n Be r h a d
Perodua Manufacturing Sdn Bhd is an associate company of a corporate shareholder of a subsidiary - Ingress Technologies Sdn Bhd Katayama Kogyo Co., Ltd is a foreign corporate shareholder of subsidiaries - Ingress Autoventures Co., Ltd and Ingress Precision Sdn Bhd Yonei Co., Ltd is a foreign corporate shareholder of a subsidiary - Ingress Autoventures Co., Ltd
**
***
**** G-Shin Corporation Sdn Bhd and Combat Coating (M) Sdn Bhd are companies related to former executive director of the Company. These companies supply parts and raw materials to subsidiaries - Ingress Technologies Sdn Bhd and Ingress Precision Sdn Bhd
147
32.
The directors are of the opinion that all the transactions above have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from those obtainable in transactions with unrelated parties. (f) Compensation of key management personnel Key management personnel are dened as those having authority and responsibility for planning, directing and controlling the activities of the Group and of the Company either directly or indirectly. The key management personnel include all the directors of the Group and of the Company and certain members of senior management of the Group and of the Company. The remuneration of key management personnel of the Group and of the Company during the nancial year are as follows: Group 2011 RM Salaries and other emoluments Bonus Fees Benets-in-kind 5,515,883 567,230 36,000 38,400 6,157,513 2010 RM 6,249,876 140,802 36,000 36,000 6,462,678 2011 RM 556,558 88,304 130,000 14,400 789,262 Company 2010 RM 533,788 140,000 19,700 693,488
Included in the total key management personnel are: Group 2011 RM Directors remuneration (Note 10) 6,157,513 2010 RM 6,462,678 2011 RM 789,262 Company 2010 RM 693,488
148
I n g r e s s C o r p o r a tio n Be r h a d
634,474 634,474
561,372 561,372
At 31 January 2010 Financial Liabilities Hire purchase and lease payables - non-current (Note 24)
3,282,603
3,019,357
Investment in equity instruments carried at cost (Note17) Fair value information has not been disclosed for the Groups investments in equity instruments that are carried at cost because fair value cannot be measured reliably. These equity instruments represent ordinary shares in a company that is not quoted on any market.
149
33.
23 23 23
The carrying amounts of these nancial assets and liabilities are reasonable approximation of fair values, either due to their short-term nature or that they are oating rate instruments that are re-priced to market interest rates on or near the reporting date. The carrying amounts of the current portion of borrowings / nancing are reasonable approximations of fair values due to the insignicant impact of discounting. The fair values of current borrowings / nancing are estimated by discounting expected future cash ows at market incremental lending rate for similar types of lending, borrowing / nancing or leasing arrangements at the reporting date.
34.
150
I n g r e s s C o r p o r a tio n Be r h a d
Group 2011 RM By industry sectors: Automotive Power industry Oil and gas % of total RM 2010 % of total
89% 8% 3% 100%
86% 9% 5% 100%
At the reporting date, approximately: 32% (2010: 36%) of the Groups trade receivables were due from 4 major customers who are multi-industry conglomerates located in Malaysia. 0.3% (2010: 0.3%) of the Groups trade and other receivables were due from related parties while almost all of the Companys receivables were balances with related parties.
151
34.
Total
125,248,147 125,248,147
18,500,949 18,500,949
99,898,421 99,898,421
12,622,009 12,622,009
152
I n g r e s s C o r p o r a tio n Be r h a d
Functional currency of group companies At 31 January 2011 Thai Bath Ringgit Malaysia Indonesia Rupiah
Total RM000
74 74
(9,797 ) (9,797 )
268 268
(5,404 ) (5,404 )
153
35.
CAPITAL MANAGEMENT
The primary objective of the Groups and the Companys capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Group and the Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group and the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the nancial years ended 31 January 2011 and 31 January 2010. The Group and the Company monitors capital using a gearing ratio, which is the aggregate amount of all outstanding borrowings / nancing divided by equity attributable to the owners of the parent less all intangibles. The Groups and the Companys policy is to keep the gearing ratio at a reasonable rate. Group 2011 RM Borrowings / nancing (Note 23) Equity attributable to the owners of the parent Less: Intangible assets (Note 14) 231,122,183 2010 RM 310,849,252 2011 RM 110,709,527 Company 2010 RM 5,002,245
Gearing ratio
36.
37.
SEGMENT INFORMATION
(a) Business Segments: The Group is organised into two major business segments: (i) Automotive Division comprising: (a) Automotive components manufacturing (b) Premium automotive dealership Power Engineering and Projects Division comprising: (a) Power engineering and railway (b) Oil and gas
(ii)
The directors are of the opinion that all inter-segment transactions have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from those obtainable in transactions with unrelated parties.
154
I n g r e s s C o r p o r a tio n Be r h a d
Automotive Division 2011 2010 RM RM REVENUE AND EXPENSES Revenue External sales Inter-segment sales Total revenue Result Operating prot / (loss) Interest / Finance costs Share of result of associates Prot before tax Income tax expense Prot for the nancial year
13,808,217 13,808,217
4,181,504 4,181,504
- 761,176,699 650,622,167 -
(51,143,329) (58,407,335)
716,869,054 614,571,993
44,609,328
39,574,066
(2,093,467)
(1,998,454)
9,717,838
(160,006)
(3,178,242)
222,158
49,055,457
37,637,764
(16,538,167) (18,554,355) (1,462,181) 492,718 (1,462,181) 31,055,109 (1,272,320) 29,782,789 492,718 19,576,127 (1,031,794) 18,544,333
ASSETS AND LIABILITIES Segment assets 699,725,255 748,448,957 113,195,022 118,080,150 258,535,831 163,131,370 (509,141,543) (405,724,414) 562,314,565 623,936,063 Investment in associates 2,820,439 11,123,718 2,820,439 11,123,718 Consolidated total assets Segment liabilities Consolidated total liabilities OTHER INFORMATION Capital expenditure 32,263,185 Depreciation & amortisation 68,707,907 443,549,592 516,609,395 107,806,889 114,212,247 175,857,822 565,135,004 635,059,781 84,739,041 (361,358,249) (256,539,245) 365,856,054 459,021,438 365,856,054 459,021,438
36,164,638 51,914,020
639,591 695,974
362,637 812,642
886,573 174,090
7,820 168,432
(825,797)
33,789,349
36,535,095 52,077,729
(817,365) 68,752,174
155
37.
Malaysia 2011 2010 RM RM Total revenue from external customers Segment assets Capital expenditure
576,030,124 519,388,503 172,030,095 123,436,219 376,522,204 443,577,848 158,434,612 163,380,823 18,104,113 32,430,397 15,471,931 3,651,335
156
I n g r e s s C o r p o r a tio n Be r h a d
Group 2011 RM000 Total retained prots of the Company and its subsidiaries - Realised - Unrealised Total share of retained prots from associates - Realised Retained prots as per nancial statements
157
Size of Shareholdings Less than 100 shares 101 1,000 shares 1,001 10,000 shares 10,001 to 100,000 shares 100,001 to less than 5% of issued shares 5% and above of issued shares Total
% 20.00 11.20
% 0.00 20.00
4,913,700
6.40
0.00
158
I n g r e s s C o r p o r a tio n Be r h a d
Name of Shareholders 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Ramdawi Sdn Bhd Datuk Rameli bin Musa Mayban Securities Nominees (Asing) Sdn Bhd Kim Eng Securities Pte Ltd for Horizon Growth Fund N.V Lembaga Tabung Haji Ab Rahim bin Husain Mayban Nominees (Asing) Sdn Bhd Pledged Securities Account for San Tuan Sam Ahmad Fadzil bin Mohamad Azura binti Abdul Halim Amanahraya Trustees Berhad Dana Johor Cimsec Nominees (Tempatan) Sdn Bhd CIMB Bank for Kuan Peng Ching @ Kuan Peng Soon (MM1076) Sakinah Sharon Needle Taman Bakti (M) Sdn Bhd Ungku Farid bin Ungku Abd Rahman ECML Nominees (Tempatan) Sdn Bhd Bank Muamalat Malaysia Berhad for Ab Wahab bin Ismail (1202) Improve Performance Investments Limited OSK Nominees (Tempatan) Sdn Berhad Pledged securities Account for Tan Ming Wai Public nominees (Tempatan) Sdn Bhd Pledged Securities Account for Tan Lim Soon (E-KPG) Mohd Yusof bin Ibrahim Lim Kew Seng Amin Husain bin Harun EB Nominees (Tempatan) Sendirian Berhad
Total Shareholdings 15,360,000 8,602,800 4,913,700 3,839,920 1,617,600 1,177,700 743,400 718,000 678,000 632,600 591,600 572,400 571,200 550,000 502,500 498,000 495,000 492,400 442,300 414,320
Percentage (%) of Shareholdings 20.00 11.20 6.40 5.00 2.11 1.53 0.97 0.93 0.88 0.82 0.77 0.75 0.74 0.72 0.65 0.65 0.64 0.64 0.58 0.54
Pledged Securities Account for Mohamed Zameel bin Mohamed Hussain (EPIC-KLG) 22 23 24 25 26 27 28 29 30 Nik Mohamad Pena bin Nik Mustapha TA Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Loh Eng Cheang HLB Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Mah Siew Seong Tae Sew Tin Kenanga Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Abdul Malek bin Othman Taman Bunga Merlimau Sdn Bhd Ab Wahab bin Ismail Lai Ka Chee Mohd Nor bin Manap Total 304,799 284,000 280,000 280,000 263,200 46,741,639 0.40 0.37 0.36 0.36 0.34 60.86 375,000 317,000 0.49 0.41 400,000 0.52 414,200 410,000 0.54 0.53
159
List of Properties
Location / Description
Tenure
Revaluation date
Ingress Engineering Sdn Bhd Nilai Industrial Estates PT Nos. 2475 & 2476 HS (D) 75367 & HS (D) 75368 Mukim of Setul District of Seremban Negeri Sembilan Darul Khusus PT No 11469 HS (M) 9638 Mukim of Kajang District of Hulu Langat Selangor Darul Ehsan Unit 17-1-1 to 17-1-14 HS (D) 75362, PT No 2193 Mukim of Setul District of Seremban Negeri Sembilan Darul Khusus Nilai Spring (Bandar Nilai Utama) GRN 197544, Lot 26332 Mukim of Bandar Nilai Utama PT Nos. 8613 & 8614 HS (M) 5188 & 5189 Sungai Penchala Mukim Kuala Lumpur Wilayah Persekutuan 60000 Kuala Lumpur Ingress Technologies Sdn Bhd Bukit Beruntung Industrial Estates HS (D) 39152 PT 13990 Seksyen 20 Mukim Bandar Serendah District of Ulu Selangor Selangor Darul Ehsan EG-05 to EG-08, E1-05 to E1-08, E2-05 to E2-08, E3-05 to E3-08, E4-05 to E4-08 Rose Court Block E, Bandar Bukit Sentosa 48300 Rawang, Selangor Darul Ehsan Industrial land Industrial building Canteen & Prayer room Staff accomodation 13 7 7 7 365,564 62,735 103,117 12,325 15,640 Master Title (freehold) Freehold October 2009 October 2009 October 2009 9,200 7,711 17,735 2,567 1,291 Industrial land Industrial building 16 303,074 109,517 Leasehold for 99 years (expiry September 2092) October 2009 October 2009 6,136 12,115
43,560 25,900
1,568 2,226
17
9,494
630
Land
12,425
Freehold
October 2009
250
78,689
40,635
81,623
Lease
5,348
160
I n g r e s s C o r p o r a tio n Be r h a d
List of Properties
Location / Description
Tenure
Revaluation date
Ingress Autoventures Co., Ltd Plot No S26, (phase 11A) Eastern Seaboard Industrial Estates (Rayong) off Highway 331 Pluakdaeng District Amphur Pluakdaeng Rayong Province, Thailand Hi-Tech Industrial Estate 64/6 Moo 1 Tambol Ban Lane Amphur Bang Pa-in Ayutthaya 13160, Thailand PT Ingress Malindo Ventures Blok GG-7A, 7B & GG-8 Jl. Industri Selatan 6A Blok GG-7 A-B Kawasan Industri Jababeka Tahap II Cikarang, Indonesia Fine Components (Thailand) Co., Ltd 600 Moo 4, T.Makhamkhu King-Am-Pur Nikhompattana, Rayong 21180 Thailand Industrial land Industrial building 9 413,334 70,716 Freehold November 2009 November 2009 3,040 3,551 Industrial land Industrial building 8 8 143,031 10,473 Leasehold for 30 years (expiry March 2033) December 2009 December 2009 2,822 1,553 Industrial land Industrial building 14 10 220,183 39,957 52,334 191,664 7 55,768 Freehold Freehold November 2009 November 2009 November 2009 November 2009 November 2009 3,745 6,052 6,079 3,745 8,627
Proxy Form
Number of Shares held (Before completing this form please refer to the Notes below) I/We ............................................................................................... IC No./Passport No./Co. No. ............................................................ (full name in capital letters) of (Address) .................................................................................................................................................................................................. being a member of INGRESS CORPORATION BERHAD, do hereby appoint ........................................................................................ ........................................................................................................................................................................................................................ (full name in capital letters) of (Address) .................................................................................................................................................................................................. or failing him, the Chairman of the Meeting, as my/our proxy, to vote for me/us and on my/our behalf, at the Twelfth Annual General Meeting of the Company to be held on Wednesday, 27 July 2011 at Pacic Ballroom, Level 2, Seri Pacic Hotel Kuala Lumpur, Jalan Putra, 50746 Kuala Lumpur at 10.30 a.m. or any adjournment thereof. My/our proxy is to vote as indicated below:Resolution Resolution 1 Agenda Receive the Directors Report, Auditors Report and Audited Financial Statements for the nancial year ended 31 January 2011. Payment of directors fees for the nancial year ended 31 January 2011. Re-election of Dato Vaseehar Hassan bin Abdul Razack. Re-election of Abdul Rahim bin Haji Hitam. Re-appointment of Messrs Ernst & Young as the Companys Auditor. To authorise the directors under Section 132D of the Companies Act, 1965, to allot and issue new shares in the Company. For Against
(Please indicate with X on the spaces provided how you wish your votes to be cast. In the absence of specic directions, your proxy will vote or abstain from voting at his discretion.)
Notes: 1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend and vote in his or her stead. A proxy may, but need not be a member of the Company. 2. The instrument appointing a proxy shall be in writing under the hand of appointer or his or her attorney duly appointed under a power of attorney or if such appointer is a corporation either under its common seal or under the hand of an ofcer or attorney duly appointed under a power of attorney. 3. Where a member appoints more than one proxy, the appointment is invalid unless the proportions of holdings represented to each proxy are specied. 4. The instrument appointing a proxy must be deposited at the registered ofce of the Company, Lot 2778, 5th Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, at least forty-eight (48) hours before the time appointed for holding the meeting or any adjournment thereof. 5. Registration of members/proxies attending the meeting will be from 9.00 a.m. on the day of the meeting. Members/proxies are required to produce their identication documents for registration.
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INGRESS CORPORATION BERHAD Lot 2778, Fifth Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, Malaysia.
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Lot 2778, 5th Floor, Jalan Damansara, Sungai Penchala, 60000 Kuala Lumpur, Malaysia. Tel: 603-7725 5565 Fax: 603-7725 5560 / 61 E-mail: investordesk@ingresscorp.com.my
www.ingresscorp.com.my