Annual Report - Naim Holdings Berhad

Transcription

A Multi-Award Winning Developer & Contractor
NAIM HOLDINGS BERHAD
(Company No.: 585467-M)
ANNUAL REPORT 2014
Contents
12
6
25
Performance At A Glance
8
9
10
12
CorSRUDWH3UR¿OH
Group Financial Summary
10-Year Financial Highlights
Share Performance
Corporate Information
14
15
16
24
25
Corporate Structure
Board of Directors
'LUHFWRUV¶3UR¿OH
Our Awards and Accolades
OUR PEOPLE, OUR ‘SUPERSTARS’:
Talent Management and Development
Business Review
29
37
42
Letter to our Shareholders
Performance Overview
Corporate Social Responsibility
Special Feature
48
49
50
Naim’s 20th Anniversary Countdown Begins!
The Beginning In The Journey of Giving:
Commencing Works For Habitat For
Humanity Malaysia’s Borneo Bliltz Build
(BBB) 2014 Project
And The Award Goes To…….
Other Highlights
53
56
Corporate Diary 2014
Naim in the News
42
49
Corporate Governance
59
64
75
79
81
Corporate Governance Statement
Board Committees Report
Audit Committee Report
Statement on Risk Management
and Internal Control
Investor Relations Activities
Economic Outlook
83
Economic Outlook
Financial Statements
86
89
Directors’ Report
Statements of Financial Position
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Comprehensive Income
91
Consolidated Statements of Changes in Equity
92
Statements of Changes in Equity
93 Statements of Cash Flows
95
Notes to the Financial Statements
148 Statement by Directors
149 Statutory Declaration
150 Independent Auditors’ Report
Other Information
152 Analysis of Shareholdings
154 Top 10 Properties
155 Notice of Annual General Meeting
157 Proxy Form
Disclaimer: The featured photographs
and perspective drawings in this
report are subject to amendment as
maybe required by the Authorities
or project consultants and cannot
form part of an offer or contract.
Whilst every care has been taken in
providing them, Naim cannot be held
responsible for any inaccuracy.
Theme and Cover Design
2014 Was an embodiment of hard work and perseverance for the Naim
Team. We triumphed over challenges, had our hearts in the business
and strived as one towards the continued and sustainability of the Group.
We created a new chapter in Sarawak’s property scene with two iconic
developments, the Bintulu Paragon and Kuching Paragon integrated
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place.
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many years to come.
Logo Rationale
The actual logo displays the word Naim in green, red and gold colours
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growth, sincerity and fairness, red represents strength and prosperity,
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LV LQWHUVHFWHG E\ WKH DSH[ RI D WRURLG D ULQJOLNH VKDSH SRVVHVVLQJ
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letter A and the toroid suggests a dazzling sunrise, predicting a shining
long-term future for the Group.
For this annual report, the report was presented in black and white,
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management.
1
2
w w w. n a i m . c o m . m y
Wisma Naim
2½ Mile, Rock Road,
93200 Kuching,
Sarawak, Malaysia
3
Our Vision
To be the leading home builder and contractor in every
market in which we operate, and in every aspect of our
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value for money.
Our Mission
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customers
To provide increasing value and superior returns for
our shareholders
To empower every member of our staff to develop
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To be a role model customer for our suppliers, sub-
contractors and service providers
To contribute meaningfully and positively to the
community and the society that nurture us
Corporate Responsibility Statement
To consider, monitor and ensure that our operations
continue to have a positive impact on our employees,
the communities we work in and the environment that
nurtures us, and to promote trust and mutual respect
amongst our customers and all other stakeholders.
4
Cautionary Statement Regarding
Forward-Looking Statements
This Annual Report contains some forward-looking
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condition, results of operations and business.
These forward-looking statements represent the
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future events and involve known and unknown risks
and uncertainties that could cause actual results,
performance or events to differ materially from
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Readers are hereby cautioned that a number of
factors could cause actual results to differ, in some
instances materially, from those anticipated or
implied in any forward-looking statement. In this
respect, readers must therefore not rely solely on
these statements in making investment decisions
regarding the Naim Group. You should rely on your
own evaluation to assess the merits and risks of
any investment decisions and seek independent
advices from your stockbroker, bank manager,
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other professional adviser immediately. The Board
and the Naim Group shall not be responsible for any
investment decisions made by readers in reliance
on those forward-looking statements. Forward
looking statements speak only as of the date they
are made, and it should not be assumed that they
have been reviewed or updated in the light of new
information or future events that would arise in the
interim of the publication of this Annual Report and
the time of reading this Annual Report.
Perspective of Sapphire On The Park (side view)
5
Our Presence
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: 9th Floor Wisma Naim, 2½ Mile, Rock Road, 93200 Kuching, Sarawak, Malaysia. Website: www.naim.com.my
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: No A-39-1, Level 39, Menara UOA Bangsar, No 5 Jalan Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia
.XFKLQJ6DOHV*DOOHU\ : Rock Commercial Centre, Jalan Green, Kuching, Sarawak, Malaysia
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%LQWXOX6DOHV*DOOHU\ : B-G-1, No.1 Old Airport Place, 97000 Bintulu, Sarawak, Malaysia
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Performance
At A Glance
8
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9
10
10-Year Financial Highlights
12
Share Performance
7
PERFORMANCE AT A GLANCE ``` CORPORATE PROFILE
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Commencing operations in 1995 with its landmark development in Tudan, Miri (now known
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Customer satisfaction year after
year clearly demonstrates the
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value and customer service. This
has resulted in a total of 22 industry
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2002, an acknowledgement of
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property and construction sectors.
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Naim is also a Class A Contractor
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has emerged as one of Malaysia’s
largest Bumiputera contractors
which has carried out more than
RM5 billion worth of works (including
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developments in Bandar Baru
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integrated development, Desa Ilmu
and Riveria in Kuching, Bintulu
Paragon integrated development
in Bintulu, and a number of
smaller developments in Sarawak,
Naim has also built more than
16,000 properties for the Sarawak
community.
01
Today, Naim Holdings Berhad,
an investment holding company
with two main subsidiaries, Naim
Land Sdn. Bhd. (NLSB) and Naim
Engineering Sdn. Bhd. (NESB),
is a fully-integrated property and
construction player focusing on
integrated property developments,
construction, civil engineering, oil
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and oil and gas services through its
investment in Dayang Enterprise
Holdings Bhd..
IS
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satellite township called the Riveria development in Kota Samarahan, Kuching. Naim was
listed on the Main Board of Bursa Malaysia Berhad on 12 September 2003.
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PERFORMANCE AT A GLANCE ``` GROUP FINANCIAL SUMMARY
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92.99
- 6.5
Earnings Per Share (sen)
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#
**
3.5 Gross Dividend (sen)
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** Gross Dividend Yield for 2013 was 0.82%. Effect of % change in yield was not presented.
# Based on year end share price of RM2.98
^ Declared on 26 February 2015 in respect of the year ended 31 December 2014
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Notice of Annual General Meeting
22 May 2014
Annual General Meeting
13 June 2014
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Book closure
25 March 2015
Payment
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24 April 2015
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The Group maintains a website (www.naim.com.my) which provides detailed information on the Group’s operations
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9
PERFORMANCE AT A GLANCE ``` 10-YEAR FINANCIAL HIGHLIGHTS (IN RM MILLION)
10-Year Financial Highlights (in RM million)
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Declared on 26 February 2015 in respect of the year ended 31 December 2014
92.99
99.49
M
1,261.03
1,254.11
220.34
235.72
227.72
252.61
656.48
M
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11
PERFORMANCE AT A GLANCE ``` SHARE PERFORMANCE
Share Performance
Volume (Share in million)
Share Price (Ringgit Malaysia)
1$,0+2/',1*6%(5+$'6KDUH3HUIRUPDQFH&KDUW
IURP6HSWHPEHUWR0DUFK
Volume traded
Share Price
320%
300%
280%
260%
240%
220%
200%
180%
Composite
160%
140%
120%
Property
100%
80%
Construction
60%
Naim
40%
20%
0%
-20%
-40%
-60%
-80%
2004
12
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Corporate
Information
14
15
Corporate Structure
16
Board of Directors
18
'LUHFWRUV¶3UR¿OH
24
25
OUR PEOPLE,
OUR ‘SUPERSTARS’:
Talent Management and
Development
13
CORPORATE INFORMATION ``` CORPORATE INFORMATION
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9th Floor, Wisma Naim,
2 ½ Mile, Rock Road,
93200 Kuching, Sarawak, Malaysia
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Website
: www.naim.com.my
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Datuk Hasmi Bin Hasnan
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Wong Ping Eng
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Tan Sri Izzuddin Bin Dali
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Professor Dato’ Abang Abdullah Bin Abang Mohamad Alli
Datin Mary Sa’diah Binti Zainuddin
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Bong Siu Lian (MAICSA 7002221)
Hasmiah Binti Anthony Hasbi (SAA0772-KH004)
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Tricor Investor Services Sdn. Bhd.
Level 17, The Gardens, North Tower
Mid Valley City, Lingkaran Syed Putra
59200 Kuala Lumpur, Malaysia
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Bursa Malaysia
Listed on 12 September 2003
Sector
: Property
Stock Code : 5073
Stock Name : Naim
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14
CORPORATE INFORMATION ``` CORPORATE STRUCTURE (AS AT DATE OF ANNUAL REPORT)
Corporate Structure (as at date of Annual Report)
2,/*$6
Dayang Enterprise Holdings Bhd.
3523(57<
Naim Land Sdn. Bhd.
3523(57<'(9(/230(17
Khidmat
Mantap Sdn. Bhd.
Ilmu Sdn. Bhd.
Commercial Sdn. Bhd.
Peranan Makmur Sdn. Bhd.
6DPDODMX3Uoperties Sdn. Bhd.
Desa
Naim
3523(57<,19(670(17
Yakin Pelita Sdn. Bhd.
Naim Realty Sdn. Bhd.
Harmony Faber Sdn. Bhd.
(1*,1((5,1*&216758&7,21
Naim Engineering Sdn. Bhd.
Kempas Sentosa Sdn. Bhd.
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A Multi-Award Winning Developer & Contractor
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Naim Supply & Logistic Sdn. Bhd.
48$55<23(5$7,216
Naim Cendera Lapan Sdn. Bhd.
Jelas Kemuncak Resources Sdn. Bhd.
Simbol Warisan Sdn. Bhd.
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CORPORATE INFORMATION ``` BOARD OF DIRECTORS
Board of Directors
From Left to Right:
1
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Managing Director
2
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3
4
Chairman
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From Left to Right:
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Deputy Managing Director
17
CORPORATE INFORMATION ``` DIRECTORS’ PROFILE
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Chairman
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25 July 2003
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University
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Ta Ann Holdings Berhad
Sarawak Plantation Berhad
Smartag Solutions Berhad
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Sarawak Energy Berhad
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Prior to the NDLP *URXS¶V OLVWLQJ KH ZDV 1RQ([HFXWLYH &KDLUPDQ
of Naim Land Sdn. Bhd. since 12 October 1995. Whilst remaining
active in the timber and plantation industries, Datuk Amar Abdul
Hamed developed his career around his keen personal interest in the
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manager and director in companies carrying out civil works, offshore
engineering, construction, housing and property development.
He was conferred the coveted Sarawak State Outstanding
Entrepreneurship Award 2014 by the Ministry of Industrial
Development, in association with the Sarawak Chamber of
Commerce and Industries (SCCI) and Ernst & Young in recognition
of his contribution towards the State’s economic development.
He was also a member of the National Economic Consultative
Council II.
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University, UK
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USA
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25 July 2003
Managing Director
Naim Incorporated Berhad
He began his career in 1979 as a valuer in the Land and Survey
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property development and management, construction, timber,
manufacturing, trading and publishing. In June 1993, he became
the Managing Director of Naim Land Sdn. Bhd. and has since been
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in Kuala Lumpur.
19
CORPORATE INFORMATION ``` DIRECTORS’ PROFILE (CONTINUE)
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Deputy Managing Director
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29 November 2012
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27 February 2013
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Tunku Abdul Rahman College, Kuala Lumpur
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Accountants (ACCA)
Bachelor of Economics (Hons) from University of
Malaya
Masters of Arts (Economics) from University of
Western Michigan, USA
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Assistant at KPMG Kuching in September 1997 until
December 2000. In 2004, she moved to Naim as an
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promoted as the Vice President – Finance and Accounts
to oversee the Group’s Finance and Accounts Division and
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and IT Division. In August 2012, she was promoted
to a Senior Director for the Group’s Support Division
comprising Finance and Accounts, Administration,
Human Resource and Information Technology. She was
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Berhad on 29 November 2012 and on 9 January 2013
she was re-designated as the Deputy Managing Director.
20
He has served the Government for more than 35 years
in various departments within the Ministry of Finance.
In 2003, he was appointed as the Secretary General,
Ministry of Works and in 2004 he was promoted as the
Secretary General of Treasury, Ministry of Finance. He
retired from government service in March 2007.
He has previously served on a number of boards, including
amongst others, Chairman of Kumpulan Wang Persaraan,
Group Chairman of Syarikat Prasarana Negara Berhad,
Chairman of Rapid Penang Sdn. Bhd, Cyberview Sdn.
Bhd, Syarikat Pembinaan BLT Sdn. Bhd, Sarawak Hidro
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Petronas, Malaysia Airlines System Bhd, Perbadanan
Insuran Deposit Malaysia, Bank Negara Malaysia, Uda
Holdings Berhad, Malaysia Airports Holdings Berhad,
Bintulu Port Sdn. Bhd. and Kuala Lumpur International
Airport Berhad. His international stint also includes board
membership in the International Islamic Trade Finance
Corporation, a subsidiary of the Islamic Development
Bank, based in Jeddah.
He is Chairman, Director and Advisor of several private
limited companies.
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Director
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(21 March 2011 till now)
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University, New South Wales, Australia.
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Engineers, Malaysia
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assumed the post of the Director of Telecom Department
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Manager of Syarikat Telekom Malaysia Sarawak Region
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.Bhd, a wholly-owned subsidiary of Syarikat Telekom
Malaysia. From 2001 until his retirement on 31 October
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Perkhidmatan Bakti (PPB) in 1997 and Panglima Setia
Bintang Sarawak (PSBS) in 2011 by TYT Yang di-Pertua
Negeri Sarawak.
'HJUHH RI 'RFWRU KRQRULV FDXVD E\ 6ZLQEXUQH
University of Technology, Australia
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University, UK
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Tadbiran Negara Malaysia (INTAN)
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6HQLRU ([HFXWLYH )HOORZV 3URJUDPPH +DUYDUG
University, USA
+H MRLQHG WKH 6DUDZDN$GPLQLVWUDWLYH 6HUYLFH LQ He worked in the Government Service for 41 years
and has held various senior posts in Government
Departments and Statutory Bodies. The last post he held
was the Director of Sarawak Foundation until he retired
from service in December 2005.
He was a Director of Sarawak Electricity Supply
Corporation (SESCO), Aseambankers (M) Berhad,
Tradewinds (Malaysia) Berhad and Sarawak Widows and
Orphans Pension Fund (WOPF), Alternate Member to
the State Secretary of Sarawak in Employees’ Provident
)XQG (3) %RDUG DQG D PHPEHU RI 0DMOLV ,VODP
6DUDZDN 'DWX 'U +DML $EGXO 5DVKLG %LQ 0RKG $]LV
is currently the Deputy Chairman of Yayasan Sarawak,
Chairman of a number of Yayasan Sarawak’s subsidiary
companies and a Board member of Sarawak Economic
Development Corporation (SEDC).
Currently, he is also the Chairman of the Charitable Trust,
%DQGDU6UL$PDQ0RVTXHD%RDUG0HPEHURI6ZLQEXUQH
University of Technology and Deputy Chairman of the
University’ss Council (Sarawak Campus).
21
CORPORATE INFORMATION ``` DIRECTORS’ PROFILE (CONTINUE)
'LUHFWRUV¶3UR¿OH(continue)
Malaysian aged
59
0DOD\VLDQDJHG
59
Date of Appointment
27 February 2013
'DWHRI$SSRLQWPHQW
17 September 2013
Bachelor of Social Science (Hons), Universiti Sains
Malaysia
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Accountants, UK
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KKB Engineering Berhad
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gas industry and was the General Manager, Petronas
6DUDZDN 5HJLRQDO 2I¿FH .XFKLQJ VLQFH WLOO KHU
UHWLUHPHQWRQ'HFHPEHU+HUZLGHH[SHULHQFH
covers many aspects of management, including public
relations, administration, marketing, procurement and
corporate affairs. She is also the President of Sarawak
Women Hockey Association.
Sarawak Consolidated Industries Berhad
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serving 13 years with the Company, he resigned in 1995
WRMRLQWKH6DUDZDN6WDWH*RYHUQPHQW+HLVFXUUHQWO\WKH
General Manager of Sarawak Economic Development
Corporation (SEDC).
His previous employment in the Sarawak Civil Service
included the Permanent Secretary of Ministry of
Social Development, Director of State Implementation
Monitoring Unit, Permanent Secretary of the Ministry of
Industrial Development, Deputy State Financial Secretary
and State Accountant-General. Between November
2002 and September 2003, he was seconded to Amanah
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He currently sits on the Board of various GovernmentLinked Companies and Non-Governmental Organisations.
22
3URIHVVRU'DWR¶$EDQJ$EGXOODK%LQ$EDQJ0RKDPDG$OOL
0DOD\VLDQDJHG
62
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15 May 2007
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University of Brighton
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University of Manchester
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the Board of Engineers, Malaysia, and Chartered
Engineer (CEng) with the Engineering Council, UK
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(FIEM), Institution of Civil Engineers, UK (FICE),
International Ferrocement Society (FIFS), Academy
of Sciences, Malaysia (FASc) and ASEAN Academy
of Engineering and Technology (FAAET)
+RQRUDU\ 0HPEHU $FDGHPLFLDQ RI WKH .D]DNKVWDQ
Engineering Academy, Honorary Fellow of the
Institution of Engineers, Malaysia and the ASEAN
Federation of Engineering Organisations
Professor Dato’ Abang Abdullah began his career as
a lecturer at Universiti Putra Malaysia in 1976, and
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3URIHVVRULQ+HZDVXSJUDGHGWR6HQLRU3URIHVVRU
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Professor (Special Grade A). At the same time he was
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DQG'HDQLQ+HZDVWKH&KDLUPDQRIWKH0DOD\VLDQ
Council of Engineering Deans and served as a Design
Engineer at Malaysian International Consultants and
Perunding Bakti Sdn. Bhd. He has served as a Board
Member of the Malaysian Highway Authority (LLM) and
Board of Engineers, Malaysia (BEM). He is currently
the President of the Malaysian Society for Engineering
and Technology (MySET), and a past President of the
Institution of Engineers, Malaysia (IEM) and Federation
of Engineering Institutions of Islamic Countries (FEIIC).
He was elected as an Honorary Advisor to the Master
Builders Association, Malaysia (MBAM) and Chairman
of CIDB Steering Committee on Industrialised Building
System. He was appointed an Advisor of King Abdullah
University of Science and Technology (KAUST), Saudi
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(UniKL), Board Member of the National Accreditation
Board (LAN), Director of Housing Research Centre
(HRC), Universiti Putra Malaysia, and Board Member,
of the Polytechnic Curriculum Board, Ministry of Higher
Education.
He has written a book on Industrialised Buildings Systems
(IBS) and has been involved in research work on housing
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low cost materials of construction, industrialised building
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Please refer to page 153 for Directors’ securities
holdings in the Company.
There is no other family relationship between the
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All Directors are Malaysians.
None of the Directors was convicted for any offence.
Please refer to page 60 for Directors’ attendance at
ERDUGPHHWLQJVKHOGGXULQJWKH¿QDQFLDO\HDU
23
CORPORATE INFORMATION ``` OUR AWARDS AND ACCOLADES
M
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24
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CORPORATE INFORMATION ``` OUR PEOPLE, OUR ‘SUPERSTARS’: TALENT MANAGEMENT AND DEVELOPMENT
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OUR PEOPLE, OUR ‘SUPERSTARS’: Talent Management and
Development
At Naim, we celebrate our people and their achievements.
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RXUSHRSOHJHWDVKDUHRIOLIHJURZDQGH[FHO
We recognise that our people are the backbone of our
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one of Malaysia’s leading developers and contractors. As
such, we are committed to investment in honing our talent,
developing our people and rewarding them for their efforts
and initiatives. We focus on their career development
plans because, as they grow, our Group grows too.
It was a whirlwind of activities for our people in the
year under review, ranging from recruitment and
implementation of new performance management
programme to developmental initiatives participated.
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758/<*5($73/$&(72:25., taking us closer to
our aspiration of becoming an (03/2<(52)&+2,&(.
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As part of the Group’s commitment to focus on continuous
development of our people, various structured training and
development interventions were organised throughout
the year. These training interventions were the result of a
detailed training needs analysis done in an effort to close
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sessions on a wide range of soft and technical skills areas,
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Some of the training and development programmes
organised were:
z ,QDXJXUDOµ7HDP%RQGLQJ¶WUDLQLQJVHULHVKHOG*URXSZLGH
z HSE awareness and related training sessions
z CIDB Green Card training
z
µTrain-the-Leader’ Trainer session to develop a pool
of in-house trainers
zEffective Interpersonal Skills
zEffective Problem Solving and Decision Making
zFundamentals of Effective Customer Service
zGST-related workshops
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zOccupational Safety and Health Awareness session
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Our team members participated in various professional
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in related areas and keep abreast of the current and
innovative industrial practices – such knowledge gained
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the conferences but also other team members through
platforms such as sharing sessions.
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(3&3URMHFW5LVN-DNDUWD,QGRQHVLD
10th MOSPA OSH National Conference 2014 (Kuala
Lumpur, Malaysia)
z UG$QQXDO*OREDO+U([FHOOHQFH&RQIHUHQFH6LQJDSRUH
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The Group organised its Senior Management Corporate
Retreat on 1 and 2 November 2014 at Damai Beach
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retreat focused on strategies to transform the Group’s
work culture towaUGVRSHUDWLRQDOH[FHOOHQFH
6RPHRIWKHVLJQL¿FDnt outcomes of the retreat were the
formation of the Culture Transformation Team, cultural
values to be adopted Group-wide and the appointment
of Change Drivers, comprising a team of enthusiastic
and innovative staff members from different divisions
and departments. Such initiatives would bring us closer
towards creating a top-notch workforce, at the same time
providing personal enrichment to our staff.
25
CORPORATE INFORMATION ``` OUR PEOPLE, OUR ‘SUPERSTARS’: TALENT MANAGEMENT AND DEVELOPMENT (CONTINUE)
OUR PEOPLE, OUR ‘SUPERSTARS’: Talent Management and
Development (continue)
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1DWLRQDO7DOHQW(QKDQFHPHQW3URJUDPH17(3
We embarked on the Naim Training Day initiative,
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designated as a training day. Under this initiative,
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VHVVLRQVRQDUHDVRXWVLGHWKHQRUPDOMREVFRSHDUHKHOG
by designated trainers – these trainers can comprise of
heads of divisions or departments, or staff members who
DUHH[SHUWLQSDUWLFXODUVXEMHFWPDWWHUV
We participated in the NTEP, a programme launched
by the Performance Management and Delivery
Unit (PEMANDU), a unit under the Prime Minister’s
Department and in collaboration with the Workforce
Development Unit of the Sarawak Chief Minister’s
Department, which was designed to accelerate the
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reference to engineering graduates as well as technical
and vocaWLRQDOTXDOL¿FDWLRQKROGHUV
More importantly, the Naim Training Day has enhanced the
level of management engagement with and camaraderie
among our team members, a crucial factor in promoting
teamwork and team spirit within the organisation.
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:LWK¿WQHVVEHLQJWKHRUGHURIWKHGD\ZHRUJDQLVHGD
µ¿WQHVV FXP EXVLQHVV¶ UHWUHDW LQ &KLDQJ 0DL 7KDLODQG
LQ0DUFK:LWKDXQLTXHEOHQGRI¿WQHVVDFWLYLWLHV
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pleasure’ at the same time, the HEALTHY way!
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2014 saw the recruitment of 475 new staff for various
positions within the Group.
In addition we participated in a number of career fairs in
an effort to boost our talent pool:
zBorneo Career Fair in Kuching (23 February 2014)
zSarawak Career and Training (SCaT) Fair in Kuching
±0DUFK±0DUFK
zManagerial and Professional Job Fair in Kuala
Lumpur (5 – 7 September 2014)
zµ3URJUDP3HQHPSDWDQ3HNHUMDDQ$=$0¶LQ.XFKLQJ
±6HSWHPEHU
zGRADUAN Career Fair in Kuching (14 March 2015)
z8L70¶Vµ0LQL&DUH[¶LQ.RWD6DPDUDKDQ0DUFK
In addition, we increased our utilisation of the social
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process, and commenced utilisation of the Harrison
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recruitment for senior management positions.
Under the programme, a 12-month traineeship is
provided to participants and upon completion, the trainees
demonstrating good potential can be absorbed into our
Group. An additional 16 degree holders participated in this
SURJUDPPHIRUPDNLQJXSDWRWDORISDUWLFLSDQWV
since the commencement of the programme in 2013.
This programme forms part of our recruitment and talent
development initiatives now, and in the future.
(PSOR\HH(QJDJHPHQWDQG,QWHUDFWLRQ
We encourage management engagement and interaction
with our team members to develop and motivate them in
their work. To facilitate greater management interaction
with staff and their family members, we organised the
inaugural Group-wide Family Day events from November
to December 2014. The events saw participation by our
staff and their family members, and also our foreign
workers.
Launched and commenced in Kuching, the events saw a
line-up of family-oriented fun activities and competitions,
and sumptuous food for all!
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1DLP0DQDJHPHQW7UDLQHH3URJUDPPH1073
The NMTP launched in 2011, is now into its fourth year
of implementation. NMTP was designed to facilitate
succession planning and involved the taking in of elite
graduates and providing them with opportunities to learn
via attachment with various departments or divisions
and other relevant training interventions to groom them to
become Naim’s future leaders. A total of 6 candidates were
selected to participate in the said programme in 2014.
7KLVPRQWKLQWHQVLYHSURJUDPPHLQFOXGHVERWKRI¿FH
and site attachment. Upon completion of the programme,
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WKHLU REVHUYDWLRQV SURMHFW DVVLJQPHQW OHDUQLQJ SRLQWV
and proposals for improvement. Participants will then be
assessed for their employment suitability.
Team Building & Bonding, Camp Mike
26
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We successfully implemented the new web-based
performance management system to drive performance
and productivity among our team members. This
comprehensive programme aims to measure and
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TXDOLWDWLYHO\ REMHFWLYHO\ UHZDUG SHUIRUPHUV DQG
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In addition, the formulation of a Long Term Incentive Plan
(LTIP), which involves the grant of new ordinary shares to
eligible staff based on various service and performance
conditions is currently in the process, and details on this
would be announced in due course. The implementation
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the Group’s talent retention initiatives.
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2014 saw the re-organisation of the Human Resources
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operations, especially in relation to site operations
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IDFLOLWDWHRSHUDWLRQDOH[FHOOHQFHZLWKLQWKH*URXS
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opportunity for all team members – all team members
irregardless of age, gender, race, religion, nationality and
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to succeed.
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We also believe in recruiting the best talent available and
developing them to realise their full potential. As at 31
December 2014, there was a total of 911 monthly staff
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DQGWHFKQLFDOTXDOL¿FDWLRQVFRQVLVWHQWZLWKRXUREMHFWLYH
WRDEVRUEPRUH\RXQJJUDGXDWHVDQGWHFKQLFDOO\TXDOL¿HG
SHUVRQV LQWR WKH ZRUNIRUFH $PRQJ RXU H[HFXWLYH
OHYHO HPSOR\HHV SRVVHVVHV SURIHVVLRQDO DQGRU
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We have also increased the participation of women in our
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with 2013.
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27
Business
Review
29
37
42
BUSINESS REVIEW ``` LETTER TO OUR SHAREHOLDERS
Dear Valued S har eholder s
2 0 14 was a n extr em ely busy and challenging year for Naim Holdings
Bhd . N o t withstanding this, we achieved commendable performance, the
r esu lt of our per sever ance and hard w ork.
2 0 14 also mar ked the commencement of our Group’s 20th Anniversary
Countdown celebrations, details of which are contained in this report –
a prelud e t o an exciting year a head!
),1$1&,$/3(5)250$1&(
2YHUDOO5HVXOWV
7KH *URXS DFKLHYHG UHYHQXH RI 50PLOOLRQ IRU 3UR¿W EHIRUH WD[ ZDV
50PLOOLRQ ZKLOH SUR¿W DWWULEXWDEOH WR VKDUHKROGHUV ZDV DSSUR[LPDWHO\
RM220.3million. Earnings per share stood at 93 sen.
The Group
achieved
revenue of
RM656.6
million for
2014
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Contributions to the Group’s overall revenue were as follows:
3URSHUW\'LYLVLRQ
50PLOOLRQ38%
&RQVWUXFWLRQ'LYLVLRQ 50PLOOLRQ54%
2WKHUV
50PLOOLRQ8%
$SDUWIURPUHYHQXHRWKHUFRQWULEXWLRQVWRSUR¿WLQFOXGHGDVKDUHRIWKHUHVXOWVRIRXU
DVVRFLDWHV DPRXQWLQJ WR 50PLOOLRQ DQG VKDUH RI WKH UHVXOWV RI MRLQW YHQWXUHV RI
RM2million.
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Despite the fact that Naim does not pursue a written dividend policy since its listing, it
has consistently rewarded shareholders with good dividend payouts, amounting to an
DYHUDJHSD\RXWUDWLRRILOOXVWUDWHGDVIROORZV
<HDU
Total Gross Dividend
3HUVKDUH6HQ
3D\RXW5DWLR
29
BUSINESS REVIEW ``` LETTER TO OUR SHAREHOLDERS (CONTINUE)
Letter to our Shareholders (continue)
Perspective - The Iconic Bintulu Paragon
Integrated Development
6LQFHOLVWLQJ1DLPKDVSDLGDWRWDORI50PLOOLRQLQJURVVGLYLGHQGVPRUHWKDQLWV
paid-up capital of RM250million.
5(9,(:2)),1$1&,$/3(5)250$1&(
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7KH3URSHUW\'LYLVLRQ¶VUHYHQXHZDVGRZQIURP50PLOOLRQLQWR50PLOOLRQ
LQ$WWKHVDPHWLPHWKH3URSHUW\SUR¿WDOVRGHFOLQHGIURP50PLOOLRQLQ
to RM75.9million in 2014. This was partly due to lower contributions from substantially
FRPSOHWHGSURMHFWV,QDGGLWLRQWKH3URSHUW\VHJPHQWDOVRUHFRUGHGORZHUQHZVDOHVRI
about RM200million, as compared with about RM331million achieved in 2013. These
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ZLWKLQWKHQH[W\HDUV
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The Construction segment recorded lower revenue of RM353.4million against
RM372.6million achieved in 2013. However, the segment showed an improvement
LQ SHUIRUPDQFH UHSRUWLQJ VPDOOHU ORVV IURP 50PLOOLRQ LQ WR 50PLOOLRQ
LQPDLQO\GXHWRKLJKHUSURJUHVVRIFRQVWUXFWLRQZRUNVIURPH[LVWLQJRQJRLQJ
SURMHFWV HVSHFLDOO\ IURP WKRVH FRQWUDFWV VHFXUHG LQ DV DJDLQVW LQFUHDVHG
operation costs.
30
Since listing,
Naim has
paid a total
RI50
million in
gross
dividends
The Paragon
of Sarawak,
Bintulu
Paragon
BINTULU
/1*7UDLQ3URMHFW%LQWXOX6DUDZDN
For Other
Division higher
revenue of
RM56.0 million
was recorded
as compared
with RM40.9
million in
year 2013
Perspective - Sarawak’s Longest Street Mall
#%LQWXOX3DUDJRQ
2WKHU2LODQG*DV3URMHFW
The contract awarded to our Group for the /1*7UDLQSURMHFWLQ%LQWXOX6DUDZDNZKLFK
was secured in 2013 continues to contribute positively to the Group’s bottom line in 2014.
2WKHU'LYLVLRQ
In 2014, the Division recorded higher revenue of RM56.0million was recorded as
compared with RM40.9million in year 2013. Additionally, this segment also reported a
ORZHUOHYHORIORVVIURP50PLOOLRQLQWR50LQ7KHLPSURYHment
was contributed by higher trading sales with improved margin.
$VVRFLDWH&RPSDQ\±'D\DQJ(QWHUSULVH+ROGLQJV%KG
Dayang Enterprise Holdings Bhd. performed very well throughout 2014, registering a
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50ELOOLRQWRODVWDWOHDVWXQWLOZHH[SHFWWKLVLQYHVWPHQWWRFRQWULEXWHSRVLWLYHO\
to the Group’s results.
31
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2014 saw a divergence in terms of global economic performance. While the U.S.
economy seemed to have picked up, China slowed, Japan faltered and Europe
FRQWLQXHG LWV VOLGH GXH WR D FRPELQDWLRQ RI UHVWULFWLYH ¿VFDO DQG PRQHWDU\ SROLF\
DFFRPSDQLHGE\ZHDNH[SRUWJURZWK%DFNKRPHDOWKRXJKWKH0DOD\VLDQHFRQRP\
JUHZE\DVFRPSDUHGZLWKLQZHIDFHGH[WHUQDOVKRFNVVXFKDVWKHIDOO
in crude oil prices and the depreciation of ringgit in Q4 2014. The ringgit depreciation
KDVOHGWRSRUWIROLRUHDOORFDWLRQE\IRUHLJQLQYHVWRUVDQGDFTXLVLWLRQRIIRUHLJQSRUWIROLR
by institutional investors. If this is not managed properly and in a timely manner, the
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productivity and lower the potential output of the economy.
Looking ahead to 2015, a snapshot of the IMF forecast revealed that although
activities in the U.S. and U.K. have gathered momentum, South America was not out
of the woods, while Russia and Western Europe remained weak. Similar situation was
faced in the Euro Area and Japan, while China was undergoing a carefully managed
slowdown. In short, the global economy would still be struggling to gain momentum as
PDQ\KLJKLQFRPHFRXQWULHVFRQWLQXHWRJUDSSOHZLWKOHJDFLHVRIJOREDO¿QDQFLDOFULVLV
and emerging economies are less dynamic than that in the past.
The
Malaysian
economy
grew by
D V
compared
Z L W K in 2013
2015 is set to be another challenging year for the Malaysian economy, with real GDP
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pULFHVDQGDQWLFLSDWHGKLJKHULQWHUHVWUDWHVHQYLURQPHQWDUHH[SHFWHGWRDGYHUVHO\DIIHFW
Malaysia’s domestic macroeconomic fundamentals. In addition, the Goods and Services
7D[¶V*67LQWURGXFWLRQLVZLGHO\H[SHFWHGWRGUDJLWV¶V*'3JURZWKWREHORZ
THE
The
Tallest Condo
In Sarawak
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32
@ BINTULU PARAGON
BINTULU
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in processes and key personnel towards continuous improvement, maintained
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is the outcome of fruits of our labour. We will continue to charge on and are cautiously
optimistic for the medium and long terms, for reasons highlighted herein.
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affordability issues and subdued buyer sentiment.
In 2014, we
launched the
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The Park’
condominium,
iconic
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condominium
and upmarket
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developements
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condominium, which is a part of the iconic Kuching Paragon integrated development at
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condominium tower within the iconic Bintulu Paragon integrated development in June
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development in Miri in July 2014.
Capitalising on the success of our Bintulu Paragon’s Street Mall launch, we later
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the super-prime units. Due to their strategic location within the iconic integrated
development, the launch was well-received.
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Mall development, the Permy Street Mall in February 2015. Set to offer a different
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KDV YDULRXV LQWHUHVWLQJ DWWULEXWHV FRQFHSWXDOO\ DV ZHOO DV DUFKLWHFWXUDOO\ ([WHUQDOO\
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beckoning. Besides offering generous spaces, its design allows good visibility to the
retail units. The Street Mall is complemented by a large atrium, suitable for holding
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is also linked to the Permy Mall, the entire concept is appealing to the customers as it
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RIH[SHFWHGZHDNHUEX\HUV¶VHQWLPHQWVXFKDVµZDLWDQGVHH¶DWWLWXGHGXHWRYDULRXV
property cooling measures and introduction of GST in April 2015.
33
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aggressive marketing, competitive pricing and attractive product packages have been
put in place to sustain demand for these properties. In addition, the bustling business
environment brought about by the Sarawak Corridor of Renewable Energy (SCORE)
helps to sustain market demand in the State.
We will adopt a more cautious approach towards product launches this year. More
thoughts will be put into pricing strategy with better understanding of the market’s buying
behavior. As part of the key measures to be implemented for this challenging market
would be more innovative marketing and sales strategies, such as target marketing and
buyer-get-buyer scheme, especially when there is a large pool of customer database.
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share.
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On the business side, we have managed to secure cumulatively, about RM322million
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our short term earnings growth. For the short to medium term, a number of sizeable
construction tenders has been submitted and we are cautiously optimistic to secure
some to replenish our order book which currently stands above RM1billion.
Various proactive efforts and measures have been put in place to better manage cost,
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margin. At the same time, we are also in the process of improving risk management
and internal controls for this segment.
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Samsung Engineering Co. Ltd (Sabah Onshore Gas Terminal) and JGC Corporation,
-DSDQ/1*7UDLQSURMHFWLQ%LQWXOX6DUDZDN:LWKWKHVHSDUWQHUVKLSVSDUWLFXODUO\
WKDWZLWK-*&RQHRIWKHIRXUODUJHVWVSHFLDOLVWVLQ/1*SURMHFWVJOREDOO\LWKDVJLYHQ
XVDYDOXDEOHLQVLJKWDQGOHVVRQLQZRUOGFODVVSURMHFWPDQDJHPHQWV\VWHPE\YLUWXH
RIµWUDQVIHURIWHFKQRORJ\¶ZKLFKZLOOIXUWKHUVWUHQJWKHQRXURSHUDWLRQVDQGHQKDQFH
VWDIIHI¿FLHQF\
Bintulu
Pulp and Paper Mill
Bintulu Samalaju Port
Balingian Coal Fired Plant
LNG Train 9
Floating LNG
Tanjung Manis
Central oil distribution terminal
Palm oil industrial cluster
Integrated port
Halal hub
34
Mukah
Smart city
R&D
Samalaju Industrial Park
(Energy Intensive Industries)
We continue
to actively
seek
opportunities
W R D F T X L U H
strategic
land banks
in Sarawak,
Sabah and
6HPHQDQMXQJ
Malaysia
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2WKHU
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by putting various measures to market and sell the products to achieve economies of
scale and performance improvements.
Our successful venture into retail property, Permy Mall has spurred us to embark on
similar developments in Bintulu, Miri and Kuching in the near future. In addition to
retail property, we are planning to embark on other types of commercial properties for
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our results in the near future, with its call out contracts estimated at about RM4billion
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together with various cost cutting initiatives and available reserves plus a healthy
balance sheet.
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We will continue to strive for the highest standards of business integrity and is
continuously taking steps to review and uphold the best practices and maintain an
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whilst maintaining a sustainable business growth.
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2014 saw the re-aligning of the Human Resources department to enhance its
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successful implementation of a new web-based performance management system
to drive performance and productivity, and various initiatives to facilitate employee
engagement and developmental aspect of staff. The formulation of the Long Term
Incentive Plan (LTIP) framework which was reported in the previous section was also
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retention.
35
Carpentry works in progress
Naim volunteers hard
at work for Habitat for
Humanity’s Borneo Blitz
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As we celebrate our achievements and the many awards won, we recognise
that as a successful corporation, we have a responsibility to positively
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future generations.
We have always taken into consideration the interests of community in
which we operate and assumed the responsibility for the impact of our
business activities on customers, suppliers, employees, shareholders,
communities and the environment. The Group is committed to its Triple
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We will continue to strive to be an ethical and responsible corporate citizen. Our
increased efforts in this regard are a testimony to our enduring commitment to balance
overall environmental, social and economic goals towards building a sustainable future.
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For our commendable performance in 2014, we wish to acknowledge the outstanding
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providers who have worked along with us every step of the way. Our sincere gratitude
also goes to all Ministries, Departments, Statutory Bodies and Regulatory Agencies
who have co-operated and guided us throughout the year.
Our heartfelt thanks also go to our customers and shareholders for your unwavering
support throughout the years, without which, our Group’s achievements this year would
not have been possible.
As the Group moves forward, we hope to grow the Naim brand and business further.
Your support has spurred us to give our best throughout the years, and it is this same
support which will spur us to greater heights in the future!
Thank you and our warmest regards.
Chairman
'DWXN+DVPL%LQ+DVQDQ
Managing Director
36
Cement works
in progress
BUSINESS REVIEW ``` PERFORMANCE OVERVIEW
Property segment was the main driver of earnings for the Group.
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The
Group
achieved a
total sales
value of
about
RM200
million
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The Group achieved a total sales value of about RM200million. A total of 433 units
comprising residential and commercial properties were sold, with successful launches
and sales in Bintulu, Miri and Kuching throughout the year. These news sales are
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Sapphire On The Park condominium in February 2014, which is a part of the iconic
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with this launch, we also introduced Naim’s newly created upmarket brand known as
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the value chain as an upmarket property developer in time to come. We also launched
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with a commendable take-up upon launch.
The Iconic
Integrated
Develoment in
Kuching,
Sarawak
Perspective - Kuching Paragon Integrated Development:
Kuching’s New Central Lifestyle District
KUCHING
37
BUSINESS REVIEW ``` PERFORMANCE OVERVIEW (CONTINUE)
Performance Overview (continue)
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Perspective of Bintulu Paragon Integrated Development,
Bintulu, Sarawak
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development, another product of the Collection. The launch was well-received,
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categorized as a Naim Signature Collection zone. With attributes such as a 30 acre
lake providing the community with boundless lakeside activities, a Clubhouse with
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Broadband services and home security system for added peace of mind, SouthLake is
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Capitalising on the success of Bintulu Paragon’s Street Mall launch, we also launched
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beckoning. Besides offering generous spaces, its design allows good visibility to the
retail units. The street mall is complemented by a large atrium, suitable for holding
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With High
Speed
Broadband
services
and home
security
system for
added peace
of mind,
SouthLake
provides
unrivalled
lakeside
living in Miri
P E R M YJ AYA
Sarawak’s
1st Luxurious
Lakeside
Living
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is also linked to the Permy Mall, this entire concept is appealing to the customers as it
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With over
2,500 acres
of prime land
bank located
a t S a r a w a k ’s
key growth
areas namely
Bintulu, Miri
and Kuching,
we can
H [ S H F W D
bright future
for the Group
As the pURSHUW\ PDUNHW LV H[SHFWHG WR VORZ GRZQ LQ GXH WR ZHDNHU EX\HUV¶
sentiment caused by various cooling measures, stringent bank lending regulations and
the imposition of the GST in April 2015, we will adopt cautious approach in the coming
year. Our product launches and pricing strategy will be implemented based on market
demands and buying behaviour. Amongst the key measures implemented to sustain
performance of our property segment will be more aggressive marketing strategies,
target marketing and innovative products and packaging.
Moving forward, we have also planned for launches in Kuching, Bintulu and Miri
throughout 2015 comprising residential and commercial properties. With over 2,500
acres of prime land bank located at Sarawak’s key growth areas namely Bintulu, Miri
DQG .XFKLQJ ZH FDQ H[SHFW D EULJKW IXWXUH IRU WKH *URXS :H DUH DOVR ORRNLQJ DW
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39
BUSINESS REVIEW ``` PERFORMANCE OVERVIEW (CONTINUE)
Performance Overview (continue)
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on investment. Additionally, more focus was accorded to brand the Mall as a fun place
to be through the organizing of interesting family-related events and other events.
More activities were also held to increase engagement with the Mall’s tenants towards
relationship building.
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the Group, are on track, and more information on this would be made available in due
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2015.
Permy Mall’s success and our enthusiasm towards our hotel development in Bintulu
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such developments in Miri, Bintulu and Kuching.
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Tebedu Road at the Samarahan Division.
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X Elevated Stations and Other Associated Works (MRT S2 & S4)
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X 8SJUDGLQJRI([LVWLQJ%XNXW5RDG
X Bintulu Central Boulevard Road
X 631%SURMHFWVRQDIIRUGDEOHKRXVLQJ
(Sultan Tengah, Kuching & Desa Bahagia, Miri)
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Perspective of
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Peninsular Malaysia
40
Preparations
for our hotel
development
in Bintulu
Paragon,
our first ever
hotel within
the Group,
are on track
Sabah Oil and Gas Terminal (SOGT) in Kimanis, Sabah
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We are continuously seeking further businesses for the medium and long term, and
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Our Oil and
G a s Te a m
also did us
proud when
the team was
D G M X G J H G
one of
the top
achievers in
relation to
workplace
safety by
achieving
1.2 million
man hours
without Lost
Ti m e a n d
, Q M X U \ /7 , 2LODQG*DV'LYLVLRQ
Our foray into oil and gas via the Sabah Onshore Gas Terminal (SOGT) and Bintulu’s
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achievers in relation to workplace safety by achieving 1.2 million man hours without
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3 Contractor’ from a pool of more than 30 local and international contractors with a
combined workforce of more than 5,000, for good HSE performance and its continuing
efforts in cultivating a strong HSE culture by the clients.
We are also seeking business opportunities for the medium and long term, and have
VXEPLWWHGELGVIRUYDULRXVRLODQGJDVUHODWHGSURMHFWV
2WKHU'LYLVLRQ
2014 saw various measures implemented to boost trading sales for its products, better
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of this segment.
In addition, a warehouse situated in Miri is currently being built and once completed,
would provide a good point of sales for building materials such as steel bars, spun
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completed in 2015.
Moving forward, continuous focus would be accorded to measures to boost sales and
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Our associate, Dayang Enterprise Holdings Bhd. achieved a stellar performance this
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from its business segments. With its ongoing contracts of above RM4billion to last
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results in time to come.
41
BUSINESS REVIEW ``` CORPORATE SOCIAL RESPONSIBILITY
Educating our young to conserve the environment
We believe that building a strong business and creating
a better world are essential ingredients for long-term
success. As such, we endeavour to integrate our role as
a corporate citizen with our day-to-day business.
We have also established a scholarship scheme under
Tabung Amanah Naim in 2005, which covers full academic
fees, lodging and books. Since its establishment, we
have awarded a total of 34 scholarships.
We are guided by the values which have been stated
in our Group’s vision and mission statements, and our
corporate responsibilities statement, which were framed
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citizen.
In addition, we have made corporate donations of some
RM2.9million for various welfare, charitable, sports,
religious, disasters and education purposes during the
year.
Our engagement in corporate responsibility has the
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z
z
To continue to be a successful organisation
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stakeholders to make a positive contribution towards
a sustainable future
z To contribute to the communities, especially
those in which Naim is present, in terms of overall
environmental, social and economic goals
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setting up of Tabung Amanah Naim (Naim Trust Fund)
in 2004 which seeks to provide assistance in areas
namely education, relief of distress, promotion of unity
through sports, arts and culture, religious worship or
advancement of religion and other patriotic or charitable
SXUSRVHV7KHWUXVWIXQGLVH[SDQGHGRQDQDQQXDOEDVLV
by donations from the Group and its subsidiaries. To
date, the fund has contributed more than RM4million for
various purposes.
42
Our efforts in this regard demonstrate our commitment
to our Triple Bottomline – PEOPLE, PLANET, PROFIT.
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As part of our commitment to QHSE, the Group introduced
various policies such as Zero Defects Policy and Healthy
Workplace and Zero Accident Policies, which culminated
in the formulation of our QHSE Charter in 2010.
We are determined that our activities shall not have any
detrimental health and safety impact on our employees,
subcontractor’s employees, customers or any member
of the community at large. Our QHSE Management is a
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and Safety Management System and 14001:2004
Environmental Management System and is recognized
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Assurance, Quality Control and HSE personnel oversee
implementation of related matters group-wide and in
addition, a HSE Committee has been established to
propose and implement continuous improvements in
relation to HSE-related matters.
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operational aspects.
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7RS &RQWUDFWRUV )RU *RRG +6( 3HUIRUPDQFH
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Naim’s Oil and Gas team made us proud when it
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safety and one of the top 3 Contractors for good HSE
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safety achievement of 3 million and 10 million man hours
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2014 respectively.
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2FWREHU
Naim achieved another safety milestone as it clocked
1 million man hours without LTI for its Bintulu Paragon
LQWHJUDWHGGHYHORSPHQWSURMHFW
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The tournament saw participation from 7 teams
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developments, commencing Q3 2014.
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RI¿UHHPHUJHQFLHV7KHGULOOVDZWKHLQYROYHPHQWRIWKH
Mall’s staff and tenants, and property sales staff.
43
BUSINESS REVIEW ``` CORPORATE SOCIAL RESPONSIBILITY (CONTINUE)
Corporate Social Responsibility (continue)
(QYLURQPHQWDO5HVSRQVLELOLW\
We assume environmental stewardship by integrating
environmental preservation measures into our daily
operations. In addition to the normal regulatory
UHTXLUHPHQWV ZH LQFRUSRUDWH RWKHU PHDVXUHV DPRQJ
RWKHUVXWLOLVLQJVFUDSPDWHULDOVLQFRQVWUXFWLRQSURMHFWV
(Balingian Bridge, Sarawak), highly scrutinised chemical
storage and waste disposal to prevent pollution and
VWULQJHQW HQIRUFHPHQW RI UHODWHG SROLFLHV YLD µVXUSULVH
checks’ by HSE-related committees.
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)HHG3LSH$XJXVW
Naim staff from Bengoh participated in the event to clear
the gravity feed at the Sebarau Waterfall and repair the
gravity feed pipe to ensure consistent water supply to
3 villages, Kampung Bidak, Kampung Payang and
Kampung Segandar.
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clean-up efforts, activities to promote reduction of carbon
foot print and many others.
We are delighted that our efforts have been duly
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Sarawak Chief Minister’s Environmental Award (CMEA)
(Large Industries – Construction) in December 2014,
making it our third consecutive win of the prestigious
DZDUGZHZHUHDGMXGJHGWKHZLQQHULQDQG
as well).
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0DUFK
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of staff volunteers and was formed more than 10 years
ago, battled challenging weather conditions for 2 weeks
in this noble attempt.
44
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'HSDUWPHQW )RU 6XVWDLQDEOH (QYLURQPHQWUHODWHG
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To facilitate wetlands and environmental conservation,
Naim would commence its collaboration with Sarawak
Forestry Department for a 3-year conservation
programme in Sarawak and Peninsular Malaysia in 2015.
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Naim looks at positive investments by engaging with
communities where the Group has direct impact and
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This comprises investments that aim to facilitate
progressive change and have a positive effect on the
community, encompassing areas such as advancement
of education, sports, assistance to the less fortunate and
the needy, and many more. Our investments address
universal basic needs whilst upholding and respecting
human rights.
1DLP&RQWULEXWHV5DPDGKDQ'RQDWLRQV7R0RVTXHV
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Naim handed over its annual Ramadhan contributions to
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of the Group’s goodwill activities during the Holy Month.
Over the years, our commitment towards the community
KDV FRQWLQXHG WR H[SDQG EH LPSURYHG DQG UH¿QHG
We pledge to ensure business sustainability without
compromising the rights and needs of future generations.
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Naim, via Tabung Amanah Naim made the contribution
to facilitate SABATI’s fund raising efforts for its activities,
Sarawak Heart Foundation and Sarawak Orphans
Welfare Association (PERYATIM).
1DLP /HQGV $ +DQG 7R 0XVOLP &KDULWDEOH 7UXVW
%RDUGV-XO\DQG$XJXVW
Tabung Amanah Naim handed over RM50,000
contribution to Miri Malay Charitable Trust Board
(LAKMM) and Bintulu Muslim Charitable Trust Board
(LAKIB) respectively.
1DLP $LGV %LQWXOX &KLQHVH 6FKRROV )HEUXDU\
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schools in Bintulu, making this the second contribution
since Naim established its presence in Bintulu in 2013.
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Tabung Amanah Naim contributed RM50,000 to PGM
to facilitate sports development, making it the third
consecutive contribution to PGM.
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We organised our inaugural group blood donation drive,
simultaneously held in Kuching, MIri and Bintulu. The
drive received good response having managed to draw
more than 100 donors.
45
BUSINESS REVIEW ``` CORPORATE SOCIAL RESPONSIBILITY (CONTINUE)
Corporate Social Responsibility (continue)
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Naim Bintulu had some fun time in the party,
spreading the X’mas cheer to children of special
needs.
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We believe that industrial training is an integral
component in empowering the young. By providing them
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in their future workplaces and moulded to become more
responsible and charismatic.
We have an ongoing internship programme which
provides undergraduate and graduate students
opportunities to perform their industrial training with us
DVSDUWRIWKHLUFRXUVHUHTXLUHPHQWV,QDWRWDORI
47 students underwent internship with us.
46
Special
Feature
48
Naim’s 20th Anniversary
Countdown Begins!
49
The Beginning In The Journey of
Giving: Commencing Works For
Habitat For Humanity Malaysia’s
Borneo Bliltz Build (BBB) 2014
Project
50
47
SPECIAL FEATURE ``` NAIM’S 20TH ANNIVERSARY COUNTDOWN BEGINS!
Naim’s 20th Anniversary Countdown Begins!
Together we launch!!
Unveiling the
20th Anniversary logo
Happy with win - Datuk Amar Hamed
witnessing prize hand-over
by Datuk Hasmi to Anselm
It was a day of festivities as the Group kicked-off its
20th Anniversary Countdown celebrations at its Rock
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in attendance were the Group’s Managing Director, Datuk
Hasmi Hasnan, Deputy Managing Director, Christina
Wong and distinguished Board Members namely Tan Sri
,]]XGGLQ%LQ'DOL'DWX'U+DML$EGXO5DVKLG%LQ0RKG
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also saw the launch of the Group’s 20th Anniversary
logo and prize giving to recipients of anniversary-related
competitions.
The countdown signaled the commencement of an array
RIH[FLWLQJHYHQWVJUHDWSURGXFWSURPRWLRQVDQGDFWLYLWLHV
for staff and the public, leading up to the anniversary
date on 15 October 2015.
Leading the countdown celebrations were the Group’s
Regional Family Days, starting with Kuching, Kuala
/XPSXU0LULDQG%LQWXOXDQGWKHODXQFKRIWKHH[FLWLQJ
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up to the actual anniversary in October 2015!
We are the Naim Family!
SPECIAL FEATURE ``` THE BEGINNING IN THE JOURNEY OF GIVING
The Beginning In The Journey of Giving: Commencing Works For
Habitat For Humanity Malaysia’s Borneo Bliltz Build (BBB) 2014 Project
Datuk Hasmi busy with
carpentry works
NAIM BOLEH!
One for the album - Naim & Canadian volunteers
'DWXN$PDU+DPHGKDQGLQJRYHUPRFNFKHTXHWR+DELWDW¶Vrepresentatives
As Naim’s Group Managing Director used to say: We
must never forget those who need our help and we must
do all we can to help.
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of voluntarism, staff participated actively in Habitat
for Humanity Malaysia’s BBB 2014 building works
throughout the year. BBB 2014 involved the construction
of 14 houses for the deserving and was the largest single
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Naim was the largest sponsor, contributing RM400,000
WRZDUGVWKHSURMHFW
Leading the way was the Group MD himself, Datuk Hasmi
Hasnan, who, together with more than 50 volunteers
comprising Board Members, staff and subcontractors,
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7KLV VHW WKH SDFH IRU VXEVHTXHQW EXLOGV ZKLFK
saw increased participation by the staff members, for
its weekend and weekday builds, from June 2014 to Q1
2015.
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not afraid to get their hands dirty, willing to learn and try
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during challenges, and more
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their weekend time with their
families for the greater good helping to build houses for the
deserving.
These are the values which
we must never lost sight of,
and which will make us better
people, in life and in work.
Christina & team hard at work
Kudos to the Naim teams and
subcontractors for making a
difference!
49
SPECIAL FEATURE ``` AND THE AWARD GOES TO…….
One of Malaysia’s
7RS3URSHUW\'HYHORSHUV
(The Edge Malaysia’s Top
Property Developers
Awards 2014)
& the 21/<(DVW0DOD\VLD
EDVHG developer award
recipient
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Most Prestigious
Integrated Lifestyle
Residential
Development
- Southlake
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5HVHUYH
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Most Prestigious
Integrated
Development
- Bintulu Paragon
Readers’ Choice
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5HVHUYH
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Best Commercial
Development
- Bintulu Paragon
The Sarawak
CMEA Award:
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We set a traiblaze this year when we received 5 awards
and 1 accolade, making it a total of 6 awards won in
2014, the highest number of awards won in a single year
in the Group’s history.
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whopping 3 awards by the Malaysian Reserve Property
Press Awards 2014 in November 2014, being the SOLE
Sarawak-based property developer in the list of award
recipients. We won the Most Prestigious Integrated
Development Award for our Bintulu Paragon integrated
development, the Most Prestigious Integrated Lifestyle
Residential Development Award for our SouthLake
3HUP\MD\DGHYHORSPHQWLQ0LULDQGWKH5HDGHUV¶&KRLFH
Award in the Best Commercial Development category for
our Bintulu Paragon development. Jointly organised by a
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Reserve Business Daily, in association with the
prestigious International New York Times, the Property
Press Awards recognises the outstanding achievements
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media.
All smiles - Asia Responsible Entrepreneurship Awards (AREA) 2014
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the winner of the Asia Responsible Entrepreneurship
Awards (AREA) 2014 (South East Asia) in the Social
Empowerment category in June 2014. The AREA was
a regional award to honour businesses across Asia for
demonstrating commitment and stewardship in corporate
social responsibility, an acknowledgement of our efforts
in this regard.
In October 2014, the Group made Sarawak proud by being
WKH21/<(DVW0DOD\VLDEDVHGGHYHORSHUDGMXGJHGRQH
of Malaysia’s Top 20 Property Developers by the Edge
Malaysia’s Top Property Developers Awards 2014. The
award win was a testament that Sarawak companies have
what it takes to be among Malaysia’s best.
50
One for the album - Malaysian Reserve Property Press Awards 2014
YAB Datuk Patinggi Tan Sri (Dr)
+DML $GHQDQ 6DWHP KDQGLQJ RYHU
the trophy to Datuk Amar Hamed
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industrial recognitions conferred on our Chairman,
Datuk Amar Abdul Hamed Sepawi and Group Managing
Director, Datuk Hasmi Hasnan for their immense
contribution towards the industry and Sarawak’s economic
development. Datuk Amar Hamed was conferred the
coveted Sarawak State Outstanding Entrepreneurship
Award 2014 by the Ministry of Industrial Development
Sarawak, in association with the Sarawak Chamber of
Commerce and Industries (SCCI) and Ernst & Young,
while the Sarawak Housing and Real Estate Developers’
Association (SHEDA) honoured Datuk Hasmi by
conferring him the status of the Honorary Member, in
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Association and housing and real estate development in
Sarawak.
In December 2014, we added another feather to
our cap by winning the 6th Sarawak Chief Minister’s
Environmental Award (CMEA) 2014 in the Large
Industries (Construction) category, marking it our third
consecutive win of the coveted award. The CMEA serves
as a recognition to companies and organizations in
Sarawak that have made tremendous effort to improve
environmental performances in their operations.
It was indeed a great and proud year for the Naim Family!
51
Other
Highlights
52
53
Corporate Diary 2014
56
Naim in the News
OTHER HIGHLIGHT ``` CORPORATE DIARY
Corporate Diary
1DLP6LQRK\GUR&RUS06LJQ&RQWUDFW)RU%LQWXOX
3DUDJRQ-DQXDU\
The contract signing with Sinohydro, the world’s largest
hydropower construction company demonstrated Naim’s
commitment in maintaining its standing as a developer
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The celebrations were held simultaneously in Kuching,
0LULDQG%LQWXOXZKLFKVDZWKHODXQFKRIWKHH[FOXVLYH
Sapphire On The Park condo and Bahagia Residences
apartment in Kuching Paragon and Miri respectively, and
Bintulu’s fun open house.
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+\GURSRZHU'HYHORSPHQW)HEUXDU\
Naim inked this MoU with Hydropol, part of the established
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international hydropower developments to facilitate
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hydropower development within Malaysia.
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More than 200 staff attended this event, organised as
part of Naim’s staff engagement initiatives.
Kuching
Miri
Bintulu
53
OTHER HIGHLIGHT ``` CORPORATE DIARY (CONTINUE)
Corporate Diary (continue)
1DLP &HOHEUDWHV *URXSZLGH /DERXU 'D\ 0D\
Naim organised its inaugural Labour Day celebrations in
Kuching, Miri and Bintulu, with fun events and great food.
Kuching
Miri
µ6XSHUVWDUV¶2Q7KH5ROO-XQH
,WZDVDQLJKWDOD+ROO\ZRRGDV1DLPRUJDQLVHGLWV$QQXDO'LQQHUZLWKWKHWKHPHµ6XSHUVWDUV¶
54
Bintulu
8QYHLOLQJ 6DUDZDN¶V 7DOOHVW &RQGR 7KH 3HDN #
%LQWXOX3DUDJRQ-XQH
This iconic development was launched and received
great response from the Bintulu community.
1DLP &OLQFKHV )LUVW (YHU &65 $ZDUG $VLD
5HVSRQVLEOH (QWUHSUHQHXUVKLS 6RXWK (DVW $VLD
$5($6($$ZDUGV-XQH
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winner of this regional award, in the Social Empowerment
category.
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1DLPODXQFKHGLWVLFRQLF6LJQDWXUH&ROOHFWLRQGHYHORSPHQW]RQHWKH6RXWK/DNH3HUP\MD\DDFKLFXSPDUNHWDQG
SUHFLQFWEDVHGHQFODYHZLWKDDFUHODNHDQG&OXEKRXVHDVLWVPDMRUIHDWXUHV
55
OTHER HIGHLIGHT ``` NAIM IN THE NEWS
Naim In The News
56
57
Corporate
Governance
59
64
Board Committees Report
75
79
Statement on Risk Management
and Internal Control
81
CORPORATE GOVERNANCE ``` CORPORATE GOVERNANCE STATEMENT
A Note on Terminology: Naim Holdings Berhad is the ultimate holding company for Naim Land Sdn Bhd, Naim Engineering Sdn.
Bhd. and other subsidiary companies, as well as their respective subsidiaries. As the principles and practices of good corporate
governance apply not only to the ultimate holding company but also all of its subsidiaries, we have chosen to forgo the use of
the term “Company” in this statement, and instead use the term “Group”, which encompasses all companies operating under the
control of Naim Holdings Berhad.
The Group will continue to strive for the highest standards of business integrity and is continually taking steps
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REMHFWLYHRIPD[LPL]LQJORQJWHUPHFRQRPLFYDOXHVKDOODQGZLOOUHPDLQWKH*URXS¶VFRUHYDOXHZKLOVWPDLQWDLQLQJD
sustainable business growth.
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The Board of Directors plays a vital role in corporate governance. The Board endorses the overall direction of
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H[SHQGLWXUHVPRQLWRUVWKHSHUIRUPDQFHDQGHQVXUHVDFFRXQWDELOLW\WRWKHVKDUHKROGHUVWKHUHOHYDQWDXWKRULWLHVDQG
other stakeholders.
7KH%RDUGLVDOVRUHVSRQVLEOHIRUWKHUHYLHZRISHUIRUPDQFHRIWKH*URXS¶VVWUDWHJLHVREMHFWLYHVEXVLQHVVSODQVDQG
budgets, and has oversight of the Group’s operations and management.
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The number of Directors shall be determined by the Board within the limits as prescribed in the Articles of Association
RIQRWPRUHWKDQ¿IWHHQWDNLQJLQWRFRQVLGHUDWLRQWKHVL]HDQGEUHDGWKRIWKHEXVLQHVVDQGWKHQHHGIRU%RDUG
diversity.
The Board’s current composition is as follows:
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1RQ([HFXWLYH'LUHFWRU
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1RWHV
Paragraph 15.02, Bursa Malaysia Securities Listing Requirements requires 1/3rd of the Board to comprise of Independent Directors. If the number
of Directors is not three (3) or a multiple of three (3), then the number nearest 1/3rd shall be used.
During the year under review, the Board composition is in line with the recommendations of the Malaysian Code of
Corporate Governance 2012 (“MCCG 2012”). The Board is served by nine (9) Board Members. The Board comprises
RI ([HFXWLYH 'LUHFWRUV RI 1RQ([HFXWLYH 'LUHFWRU DQG WKH EDODQFH RI FRPSULVHV 1RQ([HFXWLYH
'LUHFWRUVZKRDUHLQGHSHQGHQW7KH%RDUGLVPDGHXSRIDGLYHUVHJURXSRILQGLYLGXDOVZLWKEURDGH[SHULHQFHVDQG
DFFRPSOLVKPHQWVLQ¿QDQFHSURSHUW\FRQVWUXFWLRQSURMHFWPDQDJHPHQWRLODQGJDVEXVLQHVVGHYHORSPHQWDQG
PXOWLQDWLRQDOFRPSDQLHVDQGDOO0HPEHUVKDYHGHPRQVWUDWHGWKHDELOLW\WRH[HUFLVHVRXQGEXVLQHVVMXGJHPHQW
7KH,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUVGRQRWSDUWLFLSDWHLQWKHURXWLQHRSHUDWLRQVDQGEULQJXQELDVHGJXLGDQFH
to the Group. They constructively challenge and at the same time contribute to the development of strategies. They
scrutinize the performance of management in meetings, approve budgets and monitor the reporting of performance.
Being independent of management and free of any business or other relationship, they are therefore able to promote
DUP¶VOHQJWKRYHUVLJKWDQGDWWKHVDPHWLPHEULQJLQGHSHQGHQWWKLQNLQJYLHZVDQGMXGJPHQWVWREHDULQGHFLVLRQ
making. The Board monitors the independence of each Director on a half yearly basis, in respect of their interests
GLVFORVHG E\ WKHP 7KH VHJUHJDWLRQ RI GXWLHV EHWZHHQ ([HFXWLYH DQG 1RQ([HFXWLYH 'LUHFWRUV LV WR HQVXUH DQ
appropriate balance of role and accountability at the Board level.
The Board acknowledges the recommendation of the Malaysian Code of Corporate Governance 2012 for board
JHQGHU GLYHUVLW\ ,W ZLOO FRQWLQXH WR LGHQWLI\ VXLWDEO\ TXDOL¿HG ZRPDQ FDQGLGDWH WR ¿OO ERDUG VHDWV ZKHQ YDFDQF\
DULVHV3UHVHQWO\RIERDUGPHPEHUVDUHUHSUHVHQWHGE\ZRPHQ
59
CORPORATE GOVERNANCE ``` CORPORATE GOVERNANCE STATEMENT (CONTINUE)
Corporate Governance Statement (continue)
,QWKHFXUUHQW\HDU'DWX'U+DML$EGXO5DVKLG%LQ0RKG$]LVDQ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUKDV
served more than ten (10) years on the Board. Recommendation 3.3 of the Malaysian Code of Corporate Governance
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has served for more than nine (9) years.
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$JHQGDLWHPIRU'DWX'U+DML$EGXO5DVKLG%LQ0RKG$]LV¶UHWHQWLRQDV,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUDW
the forthcoming Annual General Meeting.
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liaison between the investment community and the Group’s management and the Board. His email contact is rashid.
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The Board is responsible for determining the number of meetings to be held each year. During the year under review,
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Details of Board Members’ attendance at Board meetings were as follows:
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meeting dates in advance in their calendar.
Prior to every scheduled Board meeting, appropriate written materials relating to the Agenda to be discussed at the
meeting have been circulated to all Directors in order to allow time for Directors to view the papers and facilitate full
discussion at the Board meeting.
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advisors in order to provide the Board with proper understanding of, and competence to deal with, the current and
emerging issues of the Group’s businesses. The management prepares such information in advance of each Board
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Directors have a duty to declare to the Board, should they be interested in any transactions to be entered into directly
or indirectly by the Company. Related party transactions are reviewed and deliberated at the Audit Committee
Meeting and if deemed in the best interest of the Group, fair, reasonable and on normal commercial terms not
detrimental to the interest of minority shareholders, the Audit Committee would recommend to the Board for approval.
60
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+RZHYHUEHIRUHH[HUFLVLQJWKLVULJKWWKH\DUHUHTXLUHGWRGLVFXVVWKHLVVXHZLWKWKH&KDLUPDQDQG0DQDJLQJ'LUHFWRU
WRHQVXUHWKDWWKHLQWHUHVWVRIWKH&RPSDQ\DUHQRWMHRSDUGL]HGDQGWKDWFRQ¿GHQWLDOLW\LVPDLQWDLQHG
All Directors have full, free and unrestricted access to the Senior Management, Company Secretaries, Accountants
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GHFLVLRQ7KHPDQDJHPHQWDOVRSURYLGHVSURJUHVVUHSRUWVUHODWLQJWRRSHUDWLRQDODQG¿QDQFLDOSHUIRUPDQFHRIWKH
Group.
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The Directors observe a code of ethics in accordance with the Code of Conduct as contained in the Naim Employee
Handbook and the Company Directors’ Code of Conduct established by the Companies Commission of Malaysia.
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stakeholders.
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Matters reserved for the Board and those delegated to management are dependent on the nature of the responsibilities
and the authority limits as spelt out in the Financial Authority Limit (“FAL”). The division of responsibilities between
the Board and management therefore varies with the evolution of the Group. The governance framework includes
leadership, strategic direction, roles, processes and policies, authority limits and accountability. The Board deliberates,
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a. Financial authority limit
b. Financial results
c. Declaration of dividends
d. Review and accept recommendations from Board Committees
e. Yearly business plans and 5 years business plans
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i. Board circular resolutions
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l. Progress reports
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The Chairman chairs all Board meetings and is responsible for the overall leadership of the Board, whereas the
Managing Director oversees and monitors the performance of the Deputy Managing Director and the Senior
Management team, and is charged with the day-to-day conduct of the Group’s business.
However, at Board meetings the Chairman and the Managing Director share a common role of providing leadership
and guidance to the Board, facilitating effective contributions from Board Members to ensure proper deliberation of
DOOPDWWHUVUHTXLULQJWKH%RDUG¶VDWWHQWLRQ
61
CORPORATE GOVERNANCE ``` CORPORATE GOVERNANCE STATEMENT (CONTINUE)
Corporate Governance Statement (continue)
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The Managing Director and Deputy Managing Director monitor and oversee the performance of the Senior
Management team, which is charged with the day-to-day management of the Group’s affairs and implementation of
corporate strategy and policy initiatives.
The Managing Director and Deputy Managing Director also evaluate Senior Management’s performance against the
plans and budgets on a monthly basis.
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also evaluates the performance of the management team annually against budgets or targets and other benchmarks,
which are based on competitors in similar industries and business sectors.
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The Group’s corporate responsibilities are summarized as follows:
“To consider, monitor and ensure that our operations continue to have a positive impact on our employees, the
communities we work in, and the environment that nurtures us, and to promote trust and mutual respect amongst our
customers and all other stakeholders.”
Please refer to page 42 to 46 for details in relation to Corporate Responsibility.
5(675,&7,2121'($/,1*,16(&85,7,(6
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IURPWKHSHULRGFRPPHQFLQJRQHPRQWKSULRUWRWKHWDUJHWHGGDWHRIDQQRXQFHPHQWRIWKHTXDUWHUO\UHVXOWVXSWR
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Additionally, no dealing in the Company’s securities is allowed from the time that price sensitive information is obtained
up to the date of announcement of the information to the public. Price sensitive information is any information
FRQFHUQLQJWKH&RPSDQ\WKDWDUHDVRQDEOHSHUVRQZRXOGH[SHFWWRKDYHDPDWHULDOHIIHFWRQWKHSULFHRUYDOXHRIWKH
Company’s securities.
$332,170(176727+(%2$5'
During the year under review, no new directors were appointed to the Board. Directors are appointed to the Board
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Acting on the recommendation of the Nominating Committee, the Board appoints the Director(s). The newly appointed
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Articles of Association.
The Nominating Committee shall be responsible for selecting, assessing, evaluating and recommending nominees
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complement the Board’s effectiveness and knowledge, time commitment taking into consideration the number
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KHOGLQRWKHUFRPSDQLHVLQGHSHQGHQFHRIWKHFDQGLGDWHSXUVXDQWWR%XUVD0DOD\VLD/LVWLQJ5HTXLUHPHQWVDQGWKH
calls on their time from other commitments, in order to ensure their full contribution as effective Board members.
Only candidates possessing the highest standards of personal and professional ethics and integrity, practical wisdom
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considered for recommendation to the Board for appointment.
62
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7KH1RPLQDWLQJ&RPPLWWHHDOVRUHYLHZVFKDQJHVWRWKHVWUXFWXUHRIWKH%RDUGLQOLJKWRIWKH/LVWLQJ5HTXLUHPHQWV
and the Malaysian Code of Corporate Governance pertaining to composition of the Board and its Board Committees.
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All Directors, including the Managing Director, retire by rotation once every three years. Retiring Directors may offer
themselves for re-election to the Board at the Annual General Meeting.
In addition, any newly appointed Director will submit himself for retirement and reelection at the Annual General
Meeting immediately following his appointment pursuant to Article 92 of the Articles of Association. Thereafter he
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Directors’ training is an on-going process to develop and refresh the Directors’ knowledge and skills in order to
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and the business environment:

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&RUSRUDWH 'LUHFWRUV $GYDQFHG 3URJUDPPH 6WUDWHJ\ 5LVNV ± 0DQDJLQJ 8QFHUWDLQW\ E\ 0DOD\VLDQ
Directors Academy (MINDA)
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The Directors will continue to pursue relevant seminars and trainings from time to time as they consider necessary to
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63
CORPORATE GOVERNANCE ``` BOARD COMMITTEE
Board Committee
Each Board Committee comprises members of the Board of Directors and Senior Management which is mandated to
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and to ensure diversity of opinions, suggestions and recommendations. Each Committee is given a written charter
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the Committee is to operate. The Committees are to ensure effective Board processes, structures and roles,
including Board performance evaluation by the Nominating Committee. All matters determined by the Committees
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Membership of each Committee shall be determined by the Board acting on the recommendation of the Nominating
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LWVPHPEHUVDUHVXI¿FLHQWWRHQDEOHWKH&RPPLWWHHWRGLVFKDUJHLWVUHVSRQVLELOLWLHVLQDFFRUGDQFHZLWKWKHFKDUWHU
Members of each Committee are drawn from the Board and the Group’s Senior Management team, based on their
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The Nominating Committee shall periodically review the Committee assignments and make recommendations to the
Board for rotation of assignments and appointments as deemed appropriate. The Chairman of each Committee will
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The summary of Committee memberships is as follows:
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The Group has formalized corporate disclosure policies and procedures on communication with stakeholders.
The Group communicates with shareholders by way of the Annual Report, Financial Statements, by announcing its
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WKH$QQXDO5HSRUWDQGTXDUWHUO\UHVXOWVDUHGHVLJQHGWRJREH\RQGWKHVWDWXWRU\REOLJDWLRQVLQRUGHUWRVHUYHDVDQ
effective means of communication and information on the Group’s operations.
In addition, the investment community, comprising individuals, analysts, fund managers and other stakeholders, have
dialogues with the Group’s authorized representatives (the Chairman, Managing Director and Deputy Managing
Director) on a regular basis. This provides further channel in communicating and engaging directly with the
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that are in the public domain.
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DUHJLYHQWRVKDUHKROGHUVWRUDLVHTXHVWLRQVDQGRUVHHNFODUL¿FDWLRQRQWKH*URXS¶VEXVLQHVVDQGSHUIRUPDQFH
The Group abides by the following main principles in its investor relations: WKRXJKWIXODQDO\VLVRIRXUPDUNHWYDOXHUHODWLYHWRHVWLPDWHVRIRXULQWULQVLFYDOXHWKDWLVWKHSUHVHQWYDOXHRIRXU
*URXSEDVHGRQDVHULHVRIIXWXUHH[SHFWHGQHWFDVKÀRZV
HQVXULQJWKDWDOOLQIRUPDWLRQGLYHVWHGWRRXULQYHVWRUVLVFRQVLVWHQWZLWKRXUVWUDWHJLHVSODQVDQGDFWXDOSHUIRUPDQFH
SURYLGLQJWUDQVSDUHQF\RQRXURSHUDWLRQVDQGSHUIRUPDQFH
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',5(&7256¶3(5)250$1&($1'5(081(5$7,21
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aligned with the overall strategy of the organisation.
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UHZDUGZHUHSUHDSSURYHGE\WKH%RDUGDWWKHWLPHWKHEXGJHWIRUVXEVHTXHQW\HDUZDVWDEOHGDQGPD\WKHUHDIWHU
be revised based on the prevailing economic conditions.
The Managing Director and Chairman’s remuneration package are recommended by the Remuneration Committee to
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at the Annual General Meeting.
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performance combined with each individual’s competency rating.
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performance-linked incentive scheme in the form of annual bonuses.
65
CORPORATE GOVERNANCE ``` BOARD COMMITTEE (CONTINUE)
Board Committee (continue)
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2. to reward them at the prevailing market rate
3. to reward them in a way which promotes the creation of shareholders’ value through a “performance pegged to
remuneration” package, i.e. Key Performance Indicators
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the business of the Group
2. Directors’ fees recommended by the Board and approved by shareholders in the Annual General Meeting
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allowances and fees.
No Director is involved in determining his own remuneration.
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as follows:
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Above RM2,650,001 to RM2,700,000
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Above RM1,300,001 to RM1,350,000
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Above RM650,001 to RM700,000
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Above RM200,001 to RM250,000
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Above RM100,001 to RM150,000
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Fees
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1,136,095
1,136,095
Bonus, Incentive & Others
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Others
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Statement of Directors’ Responsibility in preparing the Financial Statements
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The Directors have taken steps that are reasonably available to them to safeguard the assets of the Company and
the Group in order to prevent and detect fraud and other irregularities.
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The Board is responsible for the Group’s internal control, the overall purpose of which is to protect shareholders’
investments and the Group’s assets. The Board is assisted by the Audit Committee, which is responsible for monitoring
the Group’s internal control system, accounting policies and Financial Reporting. It also maintains a liaison with the
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control systems. The Internal Audit operation covers all business operations, units, processes and functions of the
Group. The Head of Internal Audit is Madam Shirley Noivont David. Further details of the internal audit function are
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Report.
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The Audit Committee is directly responsible for the oversight of the engagement of the Company’s auditors.
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hereunder.
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A total cumulative treasury share as at 31 December 2014 was 13,056,000.
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none of the treasury shares were resold or cancelled.
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The Group did not sponsor any ADR or GDR programmes during the year under review.
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There were no sanctions or penalties imposed on the Group, its subsidiaries, Directors and management during the
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The proceeds from the Initial Public Offerings in 2003 was fully utilised as at 31 December 2009.
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The related party transactions are disclosed on page 143 of this Annual Report.
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year.
This statement is made in accordance with a resolution of the Board dated 14 April 2015.
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The Nominating Committee was established on 13th November 2003. It comprises the following members:'DWXN$PDU$EGXO+DPHG%LQ+DML6HSDZL±&KDLUPDQ
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The main role of the Committee is to consider the nominees for appointment to the Board of Directors and to assess
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Candidates will be evaluated in one or more of the following: 5HOHYDQW.QRZOHGJH6NLOODQG([SHULHQFH
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of the Group.
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guidance and direction to management by promoting improvement, modeling new trends and evaluating strategies.
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Shareholders rely on the Board to make rational and sensible decisions on their behalf to bring about a reasonable
return on their investments. The Board has to maintain a track record of sound business decisions that add value
to the long-term strategic advantage of the Company.
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Service on the Board demands a considerable commitment with regards to time to attend and participate in
regular and special meetings of the Board and its committees. A large portion of this time is devoted to reviewing
materials relating to the business and preparing for meetings of the Board and its committees.
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The Committee will also take into consideration whether a Director is otherwise retired or to be retired from full
time employment and, thereby, able to take up additional directorships.
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in which they have a personal interest.
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A director shall be considered independent if he does not have any direct or indirect relationship with Naim
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Board for consideration.
The Nominating Committee also evaluates the following:
1. Establish criteria for selection of Directors
2. Board structure, size and the balance of representation on the Board in light of both business needs and the
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3. Performance of the Board and Board Committees;
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5. Directors’ Rotational Retirement Schedule
An outline of skills of the current Board members is as follows:
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Oil Palm and Energy
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Operations and Investment
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The Nominating Committee shall be appointed by the Board from among their number and shall comprise of no
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The duties and responsibilities of the Nominating Committee are as follows:
a. To consider and recommend to the Board competent persons of the highest calibre and integrity for appointment
as:
i. members of the Board
ii. members of the Board Committees
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c. To review the performance of members of the Board, Managing Director and members of Board Committees;
and to assess the effectiveness of the Board Committee and the Board as a whole and the contribution of each
individual Director;
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f. To review the structure for management succession and development for the orderly succession of management.
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The Remuneration Committee was formed on 13th November 2003. The Committee consists of the following
members:
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Managing Director
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Indicators (KPIs), achievement of targets and outcomes, and the ability to contribute to the long term value creation
of the organization. The overall remuneration package is devised to retain a stable management team and to align
them with the Group’s annual and long-term goals and interests of the shareholders.
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The Remuneration Committee shall be appointed by the Board from among their number and shall comprise no
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The duties and responsibilities of the Remuneration Committee are as follows:
1. To review annually and recommend to the Board the Company’s overall remuneration policy and guidelines for
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recommend changes to the Board when necessary.
No member of the committee or any Director shall participate in the meeting of the Committee (or during the relevant
part) in which any part of his remuneration is being discussed or participate in any recommendation or decision
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related scheme i.e. the Key Performance Indicators and competency rating of the Managing Director and recommend
the Managing Director and the Chairman’s remunerations to the Board for endorsement.
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The Risk Management Committee comprises the following:
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The current composition in the Risk Management Committee is as follows:
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The Board acknowledges that the Group operates in a highly dynamic environment and recognizes the need to
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provides oversight of the Group’s risk management activities and reports to the Board. The Board retains the overall
risk management responsibility.
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The Risk Management Committee assists the Board to provide effective risk oversight and to provide a clear
demarcation of roles and responsibilities and process in order that management maintained reasonable risk
management practices and system of internal control in their day-to-day operations at their respective business
units. The Committee is supported by an independent Risk Management Unit, a secretariat setup to assist in the
coordination and implementation of the risk management policy which reports directly to the Committee.
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their respective areas.
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staff, the Risk Management Unit and the Internal Audit attended the meetings to, inter alia, report, review and discuss
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The Risk Management Committee continuously review its risk management framework, policies and processes in its
effort to further embed risk management practices into the Group’s business processes and structures.
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a. To provide effective risk oversight of the Group’s Enterprise Risk Management (ERM) strategy, framework and
policies
b. To assist the Board on considerations and process for setting the risk appetite
c. To assist the Board in the effective embedment of risk management practices into the Group’s governance
framework, business processes, structures, cultures and activities
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The composition of the Risk Management Committee shall be as follows:
a. The Risk Management Committee shall be appointed by the Board from among their number and shall consist of
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the Board
c. The Secretary to the Committee and the Head of Internal Audit will be permanent attendees at each meeting
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attend a Committee meeting and assist in the discussion and consideration of matters relating to the Committee
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The Secretary of the Committee shall be the Risk Manager.
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The Risk Management Committee shall have:
a. The authority and access to the information, records or reports relevant to the Group’s activities from employees
of the Group in order to perform its duties
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on any matters within its terms of reference as it considers necessary
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The duties and responsibilities of the Risk Management Committee are as follows:
a. To provide oversight on Naim’s Enterprise Risk Management
b. To establish risk framework and policies
c. To align risk strategy to the business strategy
d. To assist the Board in determining the Group’s risk appetite and tolerance levels, and communicating them
appropriately
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f. To monitor, review and assess the material risks that the Group faces and whether controls and appropriate
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reasonable assurance that risk is being effectively managed and controlled
g. To ensure that early warning indicators are in place to alert management of potential risk events, and whether
these indicators have been effectively communicated
h. To evaluate the possibility of emerging risks likely to happen in the future and the need to put in place the
appropriate controls
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necessary authority to carry out its work
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k. The Committee shall make necessary recommendations to the Board it deems appropriate within its remit where
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i. Such other duties as the Committee deems appropriate or as delegated or authorised by the Board from time to
time
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The Risk Management Committee is supported by a Risk Management Unit in the coordination of the risk management
activities and communicating of the Group’s Enterprise Risk Management (ERM) framework, policies, processes and
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departments risk registers outlining the risks, controls and risk mitigation plans that the management has taken in
mitigating the risks for submission to the Risk Management Committee.
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The Chairman of the Risk Management Committee shall report to the Board on the Committee’s proceedings after
each meeting.
The Board is also assisted by 6 other Board Committee as follows:
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3. Business Development Committee
4. Business Process Engineering Committee
5. Corporate Disclosure Committee and
6. Corporate Social Responsibility Committee
74
CORPORATE GOVERNANCE ``` AUDIT COMMITTEE REPORT
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The Audit Committee comprises the following:
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transactions.
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reporting issues.
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auditors without the presence of the management.
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authority and responsibilities;
c. undertake such additional duties as may be appropriate to assist the Board in carrying out its duties.
75
CORPORATE GOVERNANCE ``` AUDIT COMMITTEE REPORT (CONTINUE)
Audit Committee Report (continue)
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a. The Audit Committee shall be appointed by the Board from among their number and shall comprise no
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at least one (1) member shall be a member of Malaysian Institute of Accountants (MIA).
b. If a member of the Audit Committee resigns, dies or for any other reason ceases to be a member with the
result that the number of members is reduced below three (3), the Board shall within three (3) months of
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Meetings shall be held not less than four (4) times a year and the members of the Audit Committee shall elect
a Chairman from among their number.
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The Secretary of the Committee shall be the Company Secretary.
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The Audit Committee shall have:
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any information relevant to its activities from employees of the Naim Group. All employees are directed to
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professional advice as it considers necessary.
The Audit Committee shall undertake the following duties and responsibilities:D ,QWHUQDO$XGLW
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necessary authority to carry out its work;
ii. Evaluate the internal audit programmes, processes and the results of internal audit programmes, processes
or investigation undertaken and whether or not appropriate action has been taken on the recommendation
of the internal audit function.
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ii. Evaluate the system of internal controls;
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their appointment and remuneration.
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of Directors for approval, focusing particularly on:
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shareholders via the annual report.
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To consider such other matters as the Committee deems appropriate or as authorised by the Board of
Directors.
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During the year, the Audit Committee carried out the following activities:)LQDQFLDO5HSRUWLQJ
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PDQDJHPHQWDQGERWKH[WHUQDODQGLQWHUQDODXGLWRUVWRHQVXUHFRPSOLDQFHZLWKWKH)LQDQFLDO5HSRUWLQJ
Standards and provisions of the Companies Act, 1965.
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Internal Control portion.
c. Based on the satisfactory review and discussion referred to in 3.1a and 3.1b above, the Audit Committee
recommends to the Board of Directors
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Securities Berhad.
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a. Reviewed recurrent related party transactions and non-recurrent related party transactions. The Audit
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the transaction is
i. in the best interest of the Company
ii. fair, reasonable and on normal commercial terms
iii. not detrimental to the interest of the minority shareholders
together with the basis of its opinion.
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a. Reviewed and discussed the internal audit plan, scope of work and reports.
b. Reviewed the Group Internal Audit Charter.
c. Reviewed the appraisal of performance of the Head of Internal Audit.
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The Group is served by an in-house Internal Audit Function, which reports directly to the Audit Committee on its
activities based on the approved annual Internal Audit Plan. The approved annual Internal Audit Plan is designed
to cover high risks areas and entities across all levels of operations within the Group. The Internal Audit role and
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assurance and consulting services to add value and improve the organization’s operations.
The department is headed by a Chartered Accountant who holds a Masters Degree in Forensic Accounting and
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Accountancy and Civil Engineering.
77
CORPORATE GOVERNANCE ``` AUDIT COMMITTEE REPORT (CONTINUE)
Audit Committee Report (continue)
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and personnel relevant to the performance of audit function at any time.
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The Internal Audit Function is independent of the activities audited and performs with impartiality and due
professional care. The Internal Audit Function reports directly to the Audit Committee. In addition, the Audit
Committee assesses the performance of the Head of Internal Audit.
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The report will include the status and results of the annual audit plan on the activities being reviewed.
Cases of fraud which demand urgent attention, shall be reported to the Audit Committee and the Managing
Director immediately upon discovery by the audit staff.
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The Internal Audit department has carried out its activities based on planned audits and special reviews during
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inter alia, the following:
a. Evaluated the system of internal controls and key operating process based on the approved annual plan.
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to the Audit Committee.
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effectiveness of management’s risk processes.
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and management.
Follow-up audit was also conducted and the status of implementation on the agreed upon or targeted actions
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covered under the audit plan revealed that they were generally satisfactory. In areas where controls were
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review.
CORPORATE GOVERNANCE ``` STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
Statement On Risk Management And Internal Control
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This Statement on Risk Management and Internal Control by the Board of Directors is made pursuant to Bursa
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control as provided in the Malaysian Code of Corporate Governance (“the Code”).
The Board of Naim believes in good corporate governance and manages the affairs of the Group in accordance with
the Code. In addition, the Board believes that ethical behaviour and credibility of the Board which will create a good
governance culture for the entire organization and its business partners.
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The Board acknowledges its responsibilities for maintaining a sound system of risk management and internal control
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system. In discharge of these responsibilities, the Board has put in place a process at all levels of the organization
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inherent in any system of risk management and internal control, it is designed to manage, rather than eliminate, the
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against material misstatement or loss.
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The Board acknowledges that the Group’s activities involve some degree of risks and is committed to ensuring that
it has an effective risk management framework which allows the Group to identify, evaluate and manage risks that
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and effective manner.
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PDMRULW\RIZKRPDUH,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUV7KH&RPPLWWHHLVVXSSRUWHGE\DQLQGHSHQGHQW5LVN
Management Unit to assist in the coordination and implementation of the risk management policy which reports
directly to the Committee.
Each business unit in the Group regularly identify, assess and monitor the risks. A business planning and budgeting
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WR HDFK EXVLQHVV XQLW DUH LGHQWL¿HG GXULQJ WKH EXVLQHVV SODQQLQJ SURFHVV DQG VFRUHG IRU OLNHOLKRRG RI WKH ULVNV
occurring, the magnitude of the impact, the control effectiveness and the action plans taken to mitigate those risks
to the desired level.
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XQLW¶VULVNUHJLVWHUWRWKH5LVN0DQDJHPHQW&RPPLWWHHRQDTXDUWHUO\EDVLVIRUDQRYHUDOOSHUVSHFWLYHRIWKHNH\ULVNV
LPSDFWLQJWKH*URXS¶VVWUDWHJLFREMHFWLYHV7KH5LVN0DQDJHPHQW&RPPLWWHHDIWHUUHYLHZLQJWKHVDPHHVFDODWHV
them to the Board.
79
CORPORATE GOVERNANCE ``` STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (CONTINUE)
Statement On Risk Management And Internal Control (continue)
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The key processes of Internal Control includes the following and will be revised regularly and updated when necessary:
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7KH *URXS 3URFHGXUHV DQG )LQDQFLDO $XWKRULWLHV /LPLW ³)$/´ 0DQXDO ZKLFK VHWV RXW WKH RSHUDWLQJ FRQWURO
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FRQWUROSURFHGXUHVLQWHUDOLDLQFOXGHVHWWLQJOLPLWVIRUDSSURYLQJH[SHQGLWXUHDQGSURFXUHPHQWV
7KH6WDII+DQGERRNZKLFKVHWVRXWJHQHUDOHPSOR\PHQWWHUPVDQGWKH*URXS¶VFRUSRUDWHFRGHRIHWKLFV
$TXDOLW\PDQDJHPHQWV\VWHPUHTXLULQJWKHPDQDJHPHQWDQGVWDIIRIWKH*URXS¶VSULQFLSDORSHUDWLQJVXEVLGLDU\
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HVWDEOLVKHGVWDQGDUGRSHUDWLQJSURFHGXUHVFRYHULQJDOOPDMRUFULWLFDOSURFHVVHV,QFRQWLQXDOSXUVXLWIRUSURFHVV
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DQG 2FFXSDWLRQDO +HDOWK 6DIHW\ PDQDJHPHQW 6\VWHP FHUWL¿HG ZLWK ,QWHJUDWHG PDQDJHPHQW 6\VWHP ,62
,62 DQG 2+6$6 VLQFH \HDU LQWR RQH FRKHUHQW V\VWHP VR DV WR HQDEOH WKH RSWLPDO
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with the system.
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fraud in an appropriate manner. Any cases of suspected fraud, Malpractice Reporting Plans will be applied to
ensure appropriate and timely action is taken.
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each individual employee. Employees’ performances are monitored, appraised and rewarded according to the
achievement of targets set.
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The process of risk management and internal control of the Group covers the holding company and its subsidiaries
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venture.
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responsibilities of the persons involved in the internal audit. As an integral part of the audit process, key areas of
importance pertaining to internal control, risk assessment, risk mitigation and proper governance processes are
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of the Audit Committee in turn presents summaries of the internal audit reports (including management’s responses
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This statement is made in accordance with a resolution of the Board of Directors dated 14 April 2015.
CORPORATE GOVERNANCE ``` INVESTOR RELATIONS ACTIVITIES
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Naim has always strived to develop and maintain close
relationships with our stakeholders in addition to create
value for all stakeholders. Our key focus of investor
relations activities is to consistently update and inform
shareholders, institutional investors and research
analysts with relevant comprehensive, transparent
and prompt information on the Group. This is achieved
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through the printed and other media, the Annual Report
and other regular activities, to inform stakeholders about
the Group’s business as well as our important events.
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analysts, fund managers and other potential investors,
Naim also regularly participates in and organises visits,
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sessions locally and abroad for fund managers and
investment analysts – besides updating them about the
Group’s business, these activities develop a relationship
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with the Group. In these activities, areas such as
business strategies, associated opportunities and risks,
and current developments are discussed, enabling
stakeholders to have an informed and realistic opinion
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necessary disclosure of information.
Being one the leading property and construction players
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as KAF Securities, Kenanga Research, MIDF Research
and RHB Research.
Economic
Outlook
83
Economic Outlook
ECONOMIC OUTLOOK ``` ECONOMIC OUTLOOK
Economic Outlook
The following are independent opinions from authoritative sources on the outlook for the Malaysian economy for
2015 and beyond. Unless otherwise stated, these organisations have no connection with the Naim Group or its
subsidiaries. All statements are copyright of their respective originators and are reproduced here under the rule of
fair comment.
287/22.)250$/$<6,$
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http://www.mier.org.my/outlook/
(5 December 2014)
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fundamentals.
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http://www.themalaysianinsider.com/malaysia/article/bank-negara-sees-slower-growth-in-2015-sliding-oil-prices-a-risk
(11 March 2015)
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spending was also likely to be affected by the implementation of GST in April 2015.
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http://www.thestar.com.my/Business/Business-News/2014/12/18/World-Bank-cuts-2015Malaysia-GDP-forecast
(18 December 2014)
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ECONOMIC OUTLOOK ``` ECONOMIC OUTLOOK (CONTINUE)
Economic Outlook (continue)
287/22.)256$5$:$.
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http://www.oxfordbusinessgroup.com/news/sarawak-year-review-2014
(29 January 2015)
Investments in Sarawak’s resource-based and service industries kept the Borneo Island State ahead in 2014, with
economic growth set to continue in 2015.However, new initiatives will be needed to diversify the economy and add
more value across the oil and gas product chains.
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traded out of the State.
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Note: CH Williams, Talhar, Wong and Yeo occasionally acts for the Naim Group in an advisory capacity.
Financial
Statements
86
Directors’ Report
89
Statements of Financial Position
90
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Other Comprehensive Income
91
Consolidated Statement
of Changes in Equity
92
Statement of Changes in
Equity
93
Statements of Cash Flows
95
Notes to the Financial
Statements
148
Statement by Directors
149
Statutory Declaration
150
Independent Auditors’ Report
FINANCIAL STATEMENTS ``` DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2014
Directors’ Report for the year ended 31 December 2014
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December 2014.
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Owners of the Company
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220,337
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220,619
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73,373
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Directors who served since the date of the last report are:
Wong Ping Eng
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The interests and deemed interests of the Directors (including where applicable, the interests of their spouses or children who themselves are not directors of the
Company), in the shares of the Company and of its related corporations (other than wholly-owned subsidiaries) during and at year end as recorded in the Register
of Directors’ Shareholdings are as follows:
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Direct interests in the Company
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4,000
1,000
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5,000
Shareholdings in which Datuk Amar Abdul Hamed Bin Haji Sepawi
has deemed interests
The Company
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Total Reliability Sdn. Bhd.
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Lotus Paradigm Sdn. Bhd.
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2,550,000
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Shareholdings in which Datuk Hasmi Bin Hasnan has deemed interests
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2,550,000
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(2,550,000)
700,000
7,500
999,999
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999,999
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the aggregate amount of emoluments received or due and receivable by Directors (including remuneration received as full-time employee, where applicable) as
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so to realise.
At the date of this report, the Directors are not aware of any circumstances:
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inappropriate, or
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Company misleading.
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No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months
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obligations as and when they fall due.
FINANCIAL STATEMENTS ``` DIRECTORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2014 (CONTINUE)
Directors’ Report for the year ended 31 December 2014 (continue)
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substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or event occurred in the interval
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RM70,526,000 in the Group and the Company respectively (see Note 37(a));
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respectively (see Note 37(a)(i)).
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Islamic Securities Programmes of up to RM500 million comprising medium term notes and commercial papers (see Note 21.3).
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iv. In 2014, the Group has accepted the offer from the relevant authority for additional parcels of land as the remaining compensation in relation to prior year’s
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authorities.
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The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
………………………………………...............…
………………………………………...............…
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Kuching,
Date: 14 April 2015
FINANCIAL STATEMENTS ``` STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2014
Statements of Financial Position as at 31 December 2014
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Investment in subsidiaries
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5
10
12
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2,974
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331,212
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---------------
367,922
_________
_________
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245,446
_________
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250,000
_________
13,770
_________
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250,000
_________
24,200
_________
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250,000
_________
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250,000
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239,362
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150,000
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21
136,263
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154,299
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150,000
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FINANCIAL STATEMENTS ``` STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31
DECEMBER 2014
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ended 31 December 2014
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221,025
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226,303
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1,593
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92.99
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90
29
FINANCIAL STATEMENTS ``` CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014
Consolidated Statement of Changes In Equity for the year ended
31 December 2014
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Total other comprehensive
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differences for foreign
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960
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________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________
Total other comprehensive
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Changes in ownership
interests in a subsidiary 36(ii)
124
124 (
124)
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to retained earnings
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26,334
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150
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________ ________ ________ ________ ________ ________ ________ ________ ________ ________ ________
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(Note 19) (Note 20) (Note 20) (Note 20) (Note 20) (Note 20) (Note 20) (Note 20)
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to an equity-accounted investment of an associate.
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FINANCIAL STATEMENTS ``` STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014
Statement of Changes in Equity for the year ended 31 December 2014
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FINANCIAL STATEMENTS ``` STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014
Statements of Cash Flows for the year ended 31 December 2014
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1,095
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subsidiary
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FINANCIAL STATEMENTS ``` STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014 (CONTINUE)
Statements of Cash Flows for the year ended 31 December 2014 (continue)
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FINANCIAL STATEMENTS ``` NOTES TO THE FINANCIAL STATEMENTS
Notes to the Financial Statements
Naim Holdings Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities
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the Company as at and for the year ended 31 December 2014 do not include other entities.
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Accounting Standards Board (“MASB”).
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statements for annual periods ending on 31 December 2015 until 31 December 2016.
The following are accounting standards, amendments and interpretations of the FRS framework that have been issued by the MASB but have not been
adopted by the Group and the Company:
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Amendments to FRS 13, )DLU9DOXH0HDVXUHPHQW$QQXDO,PSURYHPHQWVWR)56V&\FOH
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1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 July 2014
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
1 January 2016
The Group and the Company plan to apply:
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applicable to the Group and the Company.
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Notes to the Financial Statements (continue)
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Migration to new accounting framework
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issued by the MASB and International Financial Reporting Standards.
The Group and the Company will apply the following MFRSs that are not yet effective:
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1 January 2017
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Material impacts of the initial application of the above accounting standards, which are or are likely to be applicable to the Group and which are to be
applied retrospectively, are discussed below:
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of MFRS 15 will result in a change in accounting policy.
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Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected thereby.
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proportion that contract costs incurred for work performed to-date bear to the estimated total contract costs.
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operating policies.
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on behalf of the associate.
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transaction costs.
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controlling interests and owners of the Company.
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evidence of impairment.
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transaction.
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investment in a foreign operation and are recognised in other comprehensive income, and are presented in the foreign currency translation reserve
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non-wholly owned subsidiary, then the relevant proportionate share of the translation difference is allocated to the non-controlling interests. When a
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a party to the contractual provisions of the instrument.
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contract, in the event an embedded derivative is recognised separately, is accounted for in accordance with the policy applicable to the nature of the
host contract.
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category upon initial recognition.
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measured at cost.
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positive intention and ability to hold them to maturity.
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Financial liabilities
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frame established generally by regulation or convention in the marketplace concerned.
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refers to:
a. the recognition of an asset to be received and the liability to pay for it on the trade date, and
b. the derecognition of an asset that is sold, the recognition of any gain or loss on disposal and the recognition of a receivable from the buyer for
payment on the trade date.
v.
Derecognition
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i.
Recognition and measurement
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working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. The cost
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ZLWKWKHDFFRXQWLQJSROLF\RQERUURZLQJFRVWV>VHH1RWHX@
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DPRXQWRIWKHSURSHUW\SODQWDQGHTXLSPHQWDQGLVUHFRJQLVHGQHWZLWKLQ³RWKHULQFRPH´RU³DGPLQLVWUDWLYHH[SHQVHV´UHVSHFWLYHO\LQSUR¿WRUORVV
LL 6XEVHTXHQWFRVWV
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WKHIXWXUHHFRQRPLFEHQH¿WVHPERGLHGZLWKLQWKHFRPSRQHQWZLOOÀRZWRWKH*URXSRUWKH&RPSDQ\DQGLWVFRVWFDQEHPHDVXUHGUHOLDEO\7KH
FDUU\LQJDPRXQWRIWKHUHSODFHGFRPSRQHQWLVGHUHFRJQLVHGWRSUR¿WRUORVV7KHFRVWVRIWKHGD\WRGD\VHUYLFLQJRISURSHUW\SODQWDQGHTXLSPHQW
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iii. Depreciation
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component has a useful life that is different from the remainder of that asset, then that component is depreciated separately.
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HTXLSPHQWIURPWKHGDWHWKDWWKH\DUHDYDLODEOHIRUXVH/HDVHGDVVHWVDUHGHSUHFLDWHGRYHUWKHVKRUWHURIWKHOHDVHWHUPDQGWKHLUXVHIXOOLYHVXQOHVV
it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. Assets under construction
are not depreciated until the assets are ready for their intended use.
The estimated useful lives of assets for the current and comparative periods are as follows:
Leasehold land
Buildings
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Motor vehicles
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over lease terms of 49 years to 99 years
5, 10 and 50 years
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5 years
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i.
Finance lease
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8SRQLQLWLDOUHFRJQLWLRQDOHDVHGDVVHWLVPHDVXUHGDWDQDPRXQWHTXDOWRWKHORZHURILWVIDLUYDOXHDQGWKHSUHVHQWYDOXHRIWKHPLQLPXPOHDVH
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0LQLPXPOHDVHSD\PHQWVPDGHXQGHU¿QDQFHOHDVHVDUHDSSRUWLRQHGEHWZHHQWKH¿QDQFHH[SHQVHDQGWKHUHGXFWLRQRIWKHRXWVWDQGLQJOLDELOLW\
7KH¿QDQFHH[SHQVHLVDOORFDWHGWRHDFKSHULRGGXULQJWKHOHDVHWHUPVRDVWRSURGXFHDFRQVWDQWSHULRGLFUDWHRILQWHUHVWRQWKHUHPDLQLQJEDODQFH
of the liability. Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when the
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income or for capital appreciation or for both.
ii.
Operating lease
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and, other than property interest held under operating lease and prepaid lease payments, the leased assets are not recognised in the statement of
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as investment property and measured using fair value model.
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loss in the reporting period in which they are incurred.
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i.
Goodwill
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ii.
Other intangible asset
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losses, if any.
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iv. Amortisation
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impaired.
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on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use.
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Investment properties (including investment property under construction) are properties which are owned or held under a leasehold interest to earn rental
income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or
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companies in the Group are accounted for as owner-occupied rather than as investment properties.
i.
Recognition and measurement
Investment properties, other than those comprising property interests held under an operating lease, are stated at cost less accumulated depreciation
and accumulated impairment losses, if any. Investment properties comprising property interests held under an operating lease are stated at fair
value.
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includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for its
intended use and capitalised borrowing costs.
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item is derecognised.
ii.
Amortisation
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are not depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative periods are as
follows:
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Buildings
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50 years
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paragraph 59 of FRS 140, Investment Property.
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Land held for property development consists of land or such portions thereof on which no development activities have been carried out or where
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asset and is stated at cost less any accumulated impairment losses.
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it can be demonstrated that the development activities can be completed within the Group’s normal operating cycle of 2 to 3 years.
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that can be allocated on a reasonable basis to such activities.
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Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of
business, less the estimated costs of completion and the estimated costs necessary to make the sale.
i.
Developed properties held for sale
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attributable to developing the properties to completion.
ii.
Other inventories
Raw materials, consumables, manufactured and trading inventories (comprising building and construction materials) are measured based on the
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appropriate share of production overheads based on normal operating capacity.
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Trade and other receivables are categorised and measured as loans and receivables in accordance with Note 2(c).
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accounting policies. Thereafter generally the assets, or disposal group are measured at the lower of their carrying amount and fair value less costs of
disposal.
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Construction work-in-progress is presented as part of trade and other receivables as amount due from contract customers for all contracts in which costs
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is presented as part of trade and other payables as amount due to contract customers (Note 22).
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changes in fair value with original maturities of three months or less, and are used by the Group and the Company in the management of their short-term
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i.
Financial assets
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interest rate. The carrying amount of the asset is reduced through the use of an allowance account.
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or loss.
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the carrying amount would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal
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of goodwill impairment testing, cash-generating units to which goodwill has been allocated are aggregated so that the level at which impairment
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The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of disposal. In assessing value
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carrying amount of any goodwill allocated to the cash-generating unit (or a group of cash-generating units) and then to reduce the carrying amount
of the other assets in the cash-generating unit (or a group of cash-generating units) on a pro rata basis.
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a change in the estimates used to determine the recoverable amount since the last impairment loss was recognised. An impairment loss is reversed
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the reversals are recognised.
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ii.
Repurchase, disposal and reissue of share capital (treasury shares)
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When treasury shares are distributed as share dividends, the cost of the treasury shares is applied in the reduction of the share premium account
or distributable reserves, or both.
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the related service is provided.
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present legal or constructive obligation to pay this amount as a result of past services provided by the employees and the obligation can be estimated
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considers these to be insurance arrangements, and accounts for them as such. In this respect, the Company treats the guarantee contract as a
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that it is probable that they will result in revenue and can be measured reliably. As soon as the outcome of a construction contract can be estimated
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are recognised as incurred unless they create an asset related to future contract activity.
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ii.
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Revenue from property development activities is recognised based on the stage of completion of properties sold measured by reference to the
proportion that property development costs incurred for work performed to-date bear to the estimated total property development costs.
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iii. Sale of goods
Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the consideration received or receivable, net of returns
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costs and possible return of goods can be estimated reliably, and there is no continuing management involvement with the goods, and the amount
of revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then the discount is
recognised as a reduction of revenue as the sales are recognised.
iv. Dividend income
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vii. Interest income
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policy on borrowing costs (see Note 2(u)).
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the effective interest method.
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period of time to get ready for their intended use or sale, are capitalised as part of the cost of those assets.
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costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing
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or completed.
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borrowing costs eligible for capitalisation.
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that have been enacted or substantively enacted by the end of the reporting period.
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Transfer to:
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Carrying amounts (continue)
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At 31 December 2014
6XEWRWDO
50¶
14,969
)LQDQFHOHDVHDVVHWV
0RWRU
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YHKLFOHV
PDFKLQHU\
50¶
50¶
7RWDO
50¶
14,969
( 12,577)
______________________________________
9,373
______________________________________
105,999
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( 12,577)
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9,373
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105,999
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______________________________________
______________________________________
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_________
_________
=========
====================================
43,001
====================================
=========
43,001
=========
109
3URSHUW\SODQWDQGHTXLSPHQW(continue)
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At 1 January 2013
Additions
Write-offs
$W'HFHPEHU-DQXDU\
Additions
Write-offs
At 31 December 2014
Depreciation
At 1 January 2013
'HSUHFLDWLRQIRUWKH\HDU1RWH
Write-offs
$W'HFHPEHU-DQXDU\
Depreciation for the year (Note 25)
Write-offs
$W'HFHPEHU
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$W'HFHPEHU-DQXDU\
$W'HFHPEHU
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50¶
7RWDO
50¶
5,776
744
206
44
(
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370
40
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5,776
1,109
290
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6,726
44
(
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_________
410
(
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7,175
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135
20
66
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116
159
61
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221
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336
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3.1 Titles to properties
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3.2 Allocation of depreciation
Depreciation for the year is allocated as follows:
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50¶
50¶
50¶
50¶
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property development costs (Note 15)
363
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336
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3.3 Security
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Freehold land of a subsidiary with carrying amount of RM667,000 (2013: RM667,000) is charged to a bank as security for a term loan facility granted to
another subsidiary (see Note 21.1).
110
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Cost
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At 1 January 2013
$PRUWLVDWLRQIRUWKH\HDU1RWH
$W'HFHPEHU-DQXDU\
=========
573
_________
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629
=========
At 31 December 2014
Carrying amounts
$W'HFHPEHU-DQXDU\
=========
2,427
=========
At 31 December 2014
,QYHVWPHQWLQVXEVLGLDULHV&RPSDQ\
8QTXRWHGVKDUHVDWFRVW
50¶
50¶
=========
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incorporated in Brunei Darussalam, and the Company’s interests therein are as follows:
1DPHRIVXEVLGLDU\ Direct subsidiaries
Naim Land Sdn. Bhd. (“NLSB”)
Naim Engineering Sdn. Bhd. (“NESB”)
Naim Assets Sdn. Bhd. (“NASB”)
Subsidiaries of NLSB
Desa Ilmu Sdn. Bhd.
Naim Supply & Logistic Sdn. Bhd.
Khidmat Mantap Sdn. Bhd.
Naim Realty Sdn. Bhd.
Peranan Makmur Sdn. Bhd. (“PMSB”)
Naim Commercial Sdn. Bhd.
Naim Cendera Lapan Sdn. Bhd.
1DLP5HDG\0L[6GQ%KG Simbol Warisan Sdn. Bhd.
Yakin Pelita Sdn. Bhd.
1DLP&HQGHUD7XMXK6GQ%KG
Dataran Wangsa Sdn. Bhd.
Yakin Jelas Sdn. Bhd.
TR Green Sdn. Bhd.
Naim Utilities Sdn. Bhd.
Naim Academy Sdn. Bhd.
Naim Oil & Gas Sdn. Bhd.
3HUP\MD\D6LQR(GXFDWLRQ6GQ%KG
Kuching Paragon Sdn. Bhd.
(formerly known as Naim
Housing Sdn. Bhd.)
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Property developer and civil and building contractor
Civil, building and earthwork contractor and hire of machinery
Investment holding
100.0
100.0
100.0
100.0
100.0
100.0
Property developer
Trading of construction materials
Property developer
Property investment
Property developer
Property developer
Quarry licensee and operator
6DOHRIUHDG\PL[SLOHV
Quarry licensee
Quarry operator
Property investment
3URSHUW\LQYHVWPHQW
Property developer
Property investment
Dormant
Dormant
Dormant
Dormant
Dormant
'RUPDQW
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Dormant
60.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
70.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
70.0
100.0
60.0
100.0
100.0
100.0
100.0
100.0
100.0
75.0
70.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
70.0
100.0
111
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Subsidiaries of NLSB (continue)
Miri Paragon Sdn. Bhd. (formerly known
as Syarikat Usahasama Naim - RSB
Sdn. Bhd.)
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Vista Megalink Sdn. Bhd.
Total Reliability Sdn. Bhd. (“TRSB”)^
Dormant
100.0
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100.0
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51.0^
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Naim Overseas Sdn. Bhd. (“NOSB”)
Naim Capital Sdn. Bhd.
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100.0
100.0
100.0
100.0
100.0
100.0
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99.9
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Naimcendera Engineering & Construction
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100.0
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Naim Capital Port Sdn. Bhd.
Naim Capital Housing Sdn. Bhd.
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Dormant
100.0
100.0
100.0
100.0
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Bintulu Paragon Sdn. Bhd.
Naim Property Services Sdn. Bhd.
Bright Sungreen Sdn. Bhd. (“BSSB”) *
Dormant
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100.0
100.0
100.0
100.0
100.0
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Harmony Faber Sdn. Bhd.
Property investment
100.0
100.0
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2013, which are not material to the Group.
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The Group’s subsidiaries that have material NCI are as follows:
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112
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AA $VWKH*URXSKDGFODVVL¿HGLQWHUHVWLQ756%DVKHOGIRUVDOHGXULQJWKHODVW¿QDQFLDO\HDUQRGLVFORVXUHRQVXPPDULVHG¿QDQFLDOLQIRUPDWLRQRI756%
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36(iii)).
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Dayang Enterprise Holdings Bhd. (“DEHB”)
Provide offshore topside maintenance services, minor
fabrication works, offshore hook-up and commissioning
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are one of business strategies to venture into oil and gas industry
29.06
33.60
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Kempas Sentosa Sdn. Bhd. (“KSSB”) **
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40.00
40.00
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TR Concrete Sdn. Bhd. (“TRC”) ^
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the information to the carrying amount of the Group’s interest in the associate.
114
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( 47,993)
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224,097
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51.0
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90.0
116
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325,475
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34,474
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117
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50¶
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2,564
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_________
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2,564
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(
2,640)
_________
173
_________
=========
_________
922
_________
=========
(
2,640)
_________
1,095
_________
=========
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Amortisation for the year (Note 25)
$W'HFHPEHU
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$W'HFHPEHU-DQXDU\
=========
=========
=========
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=========
=========
=========
Fair value (see Note 9.3)
$W'HFHPEHU-DQXDU\
=========
=========
=========
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=========
=========
=========
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a subsidiary (see Note 21.1).
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Rental income (Note 23)
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income generating investment properties
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50¶
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7,350
7,772
5,216
=========
5,209
=========
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9.3 Fair value information
Fair value of investment properties as at end of the reporting period are categorised as follows:
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Level 2 fair value
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The Level 3 fair value of investment properties, which is determined for disclosures purpose, is determined by the management with reference to valuation
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location and category of property being valued.
For determining fair value of building, Investment Method is used whereby net rental is capitalised at the appropriate market yield. For land, the fair value
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Highest and best use
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impractical to estimate the highest and best use.
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Cost
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Amortisation
At 1 January 2013
$W'HFHPEHU-DQXDU\
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At 31 December 2014
6WRQHTXDUU\
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50¶
=========
1,927
_________
_________
=========
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6,917
=========
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119
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Recognised deferred tax
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Financial instruments
Capital allowances carried forward
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50¶
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41,117)
=========
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(
6,443)
=========
_________
( 32,769)
=========
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VXEVLGLDULHVDFTXLUHGLQSULRU\HDUV7KLVGHIHUUHGWD[OLDELOLW\LVSURJUHVVLYHO\UHYHUVHGWRSUR¿WRUORVVZKHQWKHVXEMHFWODQGLVGHYHORSHGDQGRUVROGRU
when the land are amortised, as the case may be.
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( 36,750)
=========
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4,029
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_________
1
=========
_________
(
49)
=========
_________
( 32,769)
=========
_________
26,326
=========
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_________
(
6,443)
=========
Unrecognised deferred tax assets
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*URXS
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Other items
50¶
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(
6,173)
_________
45,651
=========
(
2,795)
_________
47,177
=========
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50GRQRWH[SLUHXQGHUWKHFXUUHQWWD[OHJLVODWLRQH[FHSWWKDWLQWKHFDVHRIDGRUPDQWFRPSDQ\VXFKDOORZDQFHVDQGORVVHVZLOOQRWEH
DYDLODEOHWRWKHFRPSDQ\LIWKHUHLVDVXEVWDQWLDOFKDQJHRIRUPRUHLQWKHVKDUHKROGLQJVWKHUHRI
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'HFHPEHULV5050
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_________
2,974
=========
_________
11
=========
Representing item:
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=========
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50¶
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113,969
250)
113,719
_________
--------------
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2,506)
3,293
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3,154
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50¶
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Trade
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Less: Allowance for impairment losses
&RQWUDFWSURJUHVVELOOLQJVUHFHLYDEOHV1RWH
$FFUXHGELOOLQJV
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73,744
247)
73,497
_________
--------------
(
(
1RQWUDGH
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Less: Allowance for impairment losses
Amount due from:
VXEVLGLDULHV1RWH - associates (Note 13.6)
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=========
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(
23,356)
(
121
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WKHFRQWUDFWSURFHHGVLQFOXGLQJDVVRFLDWHG¿QDQFLQJLQFRPHDUHWREHUHFRYHUHGRYHUDSHULRGRI\HDUVXSRQWKHFRPSOHWLRQRIWKHSURMHFW7KH
RXWVWDQGLQJFRQWUDFWSURJUHVVELOOLQJVUHFHLYDEOHVDUHXQVHFXUHGDQGVXEMHFWWRLQWHUHVWDWSHUDQQXP
13.2 Contract progress billings receivables
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work-in-progress.
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Within 1 year
1 - 2 years
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0RUHWKDQ\HDUV
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50¶
50¶
19,149
17,520
11,936
_________
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17,904
10,715
4,307
_________
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13.3 Construction work-in-progress
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50¶
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Progress billings
_________
(1,401,779)
_________
70,164
=========
_________
(1,521,304)
_________
100,244
=========
_________
70,164
=========
_________
100,244
=========
Represented by:
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Additions to aggregate costs incurred during the year include:
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3HUVRQQHOH[SHQVHVLQFOXGLQJNH\PDQDJHPHQWSHUVRQQHO
contributions to state plans
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*URXS
50¶
50¶
2,136
=========
1,216
=========
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RWKHUH[SHQVHVIRUWKHFRQVWUXFWLRQSURMHFWV$QDOORZDQFHIRULPSDLUPHQWORVVRI50KDVEHHQPDGHDJDLQVWWKLVEDODQFHGXULQJWKH\HDU
13.5 The amount due from subsidiaries are unsecured, interest-free and repayable on demand.
,QFOXGHGLQWKHDPRXQWGXHIURPVXEVLGLDULHVDVDW'HFHPEHUZDVDQDPRXQWRI50EHDULQJLQWHUHVWDWSHUDQQXP7KH
remaining balances were interest-free.
13.6 The amount due from associates are unsecured, interest-free and repayable on demand.
122
,QYHQWRULHV
*URXS
At cost
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At net realisable value
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- inventories recognised as cost of sales
50¶
50¶
_________
_________
_________
=========
_________
=========
69,744
=========
101,910
=========
50¶
3URSHUW\GHYHORSPHQWFRVWV*URXS
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Property development costs
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Development costs
$FFXPXODWHGFRVWVFKDUJHGWRSUR¿WRUORVV
Additions
'HYHORSPHQWFRVWVLQFXUUHGGXULQJWKH\HDU
---------------
(
1,030)
11,652)
_________
( 196,550)
---------------
5HFRJQLVHGWRFRVWRIVDOHV7UDQVIHUV
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7UDQVIHUWRODQGKHOGIRUSURSHUW\GHYHORSPHQW1RWH Transfer of completed properties to inventories
7UDQVIHUWRDVVHWKHOGIRUVDOH1RWH
$W'HFHPEHU-DQXDU\
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_________
245,445
--------------
302,002
_________
---------------
Additions
/DQGFRVWLQFXUUHGGXULQJWKH\HDU
Development costs incurred during the year
133,271
244,936
_________
---------------
123
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50¶
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7UDQVIHUWRODQGKHOGIRUSURSHUW\GHYHORSPHQW1RWH Transfer of completed properties to inventories
(
529)
_________
---------------
At 31 December 2014
Land
Development costs
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- contributions to state plans
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67,970
459,414
_________
367,922
=========
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50¶
50¶
211
=========
323
=========
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be progressively deducted against actual physical goods delivered.
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50¶
50¶
5,350
_________
=========
5,367
_________
=========
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50¶
50¶
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24
_________
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19
_________
=========
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50¶
50¶
50¶
50¶
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_________
20,000
_________
_________
20,000
_________
_________
=========
_________
=========
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=========
_________
=========
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withdrawals thereof, as and when the need arises.
124
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50¶
50¶
_________
10,940
=========
_________
23,069
=========
=========
=========
1RWH
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Disposal group held for sale
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Disposal group held for sale
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The assets and liabilities of the disposal groups as at the end of the reporting period are as follows:
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Investment in an associate
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Trade and other receivables
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Accumulated depreciation
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50¶
50¶
119
7,036
_________
10,337
=========
5,199
437
11,652
3,117
_________
23,069
=========
_________
6,549
=========
_________
3,040
=========
50¶
50¶
(
3,367)
_________
=========
(
959)
_________
=========
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7KHFDUU\LQJDPRXQWRISURSHUW\SODQWDQGHTXLSPHQWRIWKHGLVSRVDOJURXSLVWKHVDPHDVLWVFDUU\LQJDPRXQWEHIRUHLWZDVEHLQJUHFODVVL¿HGWR
current assets.
125
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ii.
Investment in associate held for sale relates to investment in TR Concrete Sdn. Bhd., and comprised the following:
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50¶
50¶
_________
=========
_________
5,199
=========
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where applicable.
iv.
Property development cost held for sale comprised the following:
Land
Development costs
50¶
50¶
_________
=========
5,465
25,706
31,171
_________
11,652
=========
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50¶
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Ordinary shares of RM1.00 each
Authorised:
Opening and closing balances
Issued and fully paid:
Opening and closing balances
500,000
=========
500,000
=========
500,000
=========
500,000
=========
250,000
=========
250,000
=========
250,000
=========
250,000
=========
The holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at meetings of the
Company.
126
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Foreign currency translation reserve
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50¶
50¶
50¶
50¶
1,729
_________
=========
1,074
_________
=========
_________
=========
_________
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Share premium
Share premium arose from the premium paid on subscription of ordinary shares in the Company at a price above its par value of RM1.00 each in prior year.
Retained earnings
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via the Finance Act 2007.
Treasury shares
The shareholders of the Company, via an ordinary resolution passed in the Annual General Meeting held on 13 June 2014, approved the Company’s plan
to repurchase its own shares. The Directors of the Company are committed to enhancing the value of the Company to its shareholders and believe that the
repurchase plan can be applied in the best interests of the Company and its shareholders.
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At 31 December 2014, the Group held 13,056,000 (2013: 13,056,000) of the Company’s shares. All rights attached to the treasury shares that are held by the
Group are suspended until those shares are reissued.
Foreign currency translation reserve
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with functional currencies other than RM.
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Unsecured Islamic Bonds (Note 21.3)
Current
Secured term loans
Unsecured revolving credits
Finance lease liabilities (Note 21.2)
Unsecured Islamic Bonds (Note 21.3)
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_________
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150,000
_________
---------------
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150,000
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6,263
130,000
_________
136,263
---------------
4,262
37
150,000
_________
154,299
---------------
_________
---------------
150,000
_________
150,000
---------------
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127
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21.1 Securities
Term loans
A term loan granted to a subsidiary is secured by:
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b. corporate guarantee from the Company.
Another term loan is secured over the freehold land of a subsidiary and covered by a corporate guarantee from another subsidiary (see Note 3.3).
'XULQJWKH¿QDQFLDO\HDUWKH*URXSREWDLQHGDQHZWHUPORDQIDFLOLW\WR¿QDQFHDFRQVWUXFWLRQSURMHFW7KLVQHZWHUPORDQLVVHFXUHGE\
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b. debenture over future and present assets of a subsidiary; and
c. corporate guarantees from the Company and another subsidiary.
Revolving credits
The revolving credit facilities granted to direct subsidiaries are covered by way of corporate guarantee from the Company.
The revolving credit of the Company, which has not been utilised as at year end, is on a clean basis.
Finance leases
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settled during the year.
21.2 Finance lease liabilities
Finance lease liabilities were payable as follows:
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21.3 Islamic Bonds facilities
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the Islamic Securities Programmes of up to RM500 million comprising medium term notes and commercial papers.
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132,905
93,410
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179,790
---------------
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143,076
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Trade
Trade payables (Note 22.1)
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Amounts due to:
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22.37KHDPRXQWGXHWRVXEVLGLDULHVLVXQVHFXUHGUHSD\DEOHRQGHPDQGDQGEHDUVLQWHUHVWDWUDWHVUDQJLQJIURPWR1LOSHUDQQXP
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Rental income of investment properties
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129
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Dividend income from:
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Gain on disposal of:
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Rental income from:
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Amortisation of:
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Auditors’ remuneration:
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Other auditors
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KPMG Malaysia
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Loss on disposal of a subsidiary
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- wages, salaries and others
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132
39
119
39
1,706
33,253
=========
49,736
=========
1,957
=========
1,140
=========
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- interest income from deferred payment scheme
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972
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6,647
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- loans and borrowings
9,719
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- subsidiaries
_________
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2,640
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2,255
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Directors of the Company
- Fees
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Other key management personnel
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Other key management personnel comprise persons, other than the Directors of the Company, having authority and responsibility for planning, directing and
controlling the activities of the group entity either directly or indirectly.
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- current year
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19,209
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( 26,326)
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13,057
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242,263
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13,917
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271,694
=========
_________
73,402
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2,055
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23,069
_________
21,644
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_________
34,135
_________
33,427
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29
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416
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462
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Reconciliation of tax expense
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- associates
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Basic and diluted earnings per ordinary share
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RM235,725,000) and the weighted average number of ordinary shares outstanding of 236,944,000 (2013: 236,944,000).
Weighted average number of ordinary shares
Issued ordinary shares at beginning of year
Less: Cumulative effect of treasury shares bought back in previous years
Weighted average number of ordinary shares at outstanding at the end of year
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30.1 Dividends per ordinary share
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30.2 Dividends
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The Group has three reportable segments, which are the Group’s strategic business units. For each of the strategic business unit, the Group Managing
Director (“GMD”), being the Chief Operating Decision Maker, reviews internal management reports for resource allocation and decision making at least on a
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Property development
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Development and construction of residential and commercial properties (including sale of vacant land).
Construction of buildings, roads, bridges and other infrastructure and engineering works (including oil and gas related construction
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is used to measure performance as management believes that such information is the most relevant in evaluating the results of the segments relative to other
entities that operate within these industries.
There are varying levels of integration between the reportable segments. Inter-segment pricing is determined on negotiated terms.
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allocated to any operating segment.
Segment assets and liabilities
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assets and liabilities by segments. As such, information on segment assets and segment liabilities is not presented.
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Total comprehensive income attributable to owners of the Company
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depreciation
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Major customers
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a. Loans and receivables (“L&R”);
b. Financial liabilities measured at amortised cost (“FL”); and
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32.3 Financial risk management
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Risk management objectives, policies and processes for managing the risk

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The management regularly reviews the credit risk on customers and takes appropriate measures to enhance credit control procedures. Cash
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The Company sometimes provides unsecured loans and advances to subsidiaries. The Company monitors the results of the subsidiaries
regularly.
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Management has taken reasonable steps to ensure that receivables that are neither past due nor impaired are stated at their realisable values.
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32.3 Financial risk management (continue)
D &UHGLWULVN(continue)
5HFHLYDEOHV(continue)
([SRVXUHWRFUHGLWULVNFUHGLWTXDOLW\DQGFROODWHUDO(continue)
7KHH[SRVXUHRIFUHGLWULVNIRUWUDGHDQGRWKHUUHFHLYDEOHVDVDWWKHHQGRIWKHUHSRUWLQJSHULRGE\JHRJUDSKLFUHJLRQZDV
*URXS
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50¶
50¶
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)LML _________
=========
_________
=========
Impairment losses
7KHDJHLQJRIUHFHLYDEOHVH[FOXGLQJDPRXQWGXHIURPFRQWUDFWFXVWRPHUVDQGDFFUXHGELOOLQJVDVDWWKHHQGRIWKHUHSRUWLQJSHULRGZDV
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_________
=========
_________
=========
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50¶
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50¶
1HW
50¶
7,291
_________
=========
(
761)
_________
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6,530
_________
=========
127,713
17,143
16,416
_________
=========
_________
=========
127,713
17,143
16,416
_________
=========
50¶
50¶
2,756
(
4)
_________
23,603
=========
545
(
7)
_________
2,756
=========
1RWSDVWGXH
3DVWGXHGD\V
Past due 31-60 days
3DVWGXHGD\V
3DVWGXHGD\V
3DVWGXHPRUHWKDQGD\V
7RWDOUHFHLYDEOHV
Not past due
Past due 0-30 days
3DVWGXHGD\V
Past due 61-90 days
3DVWGXHGD\V
3DVWGXHPRUHWKDQGD\V
7RWDOUHFHLYDEOHV
7KHPRYHPHQWVLQWKHDOORZDQFHIRULPSDLUPHQWORVVRIUHFHLYDEOHVGXULQJWKH¿QDQFLDO\HDUZHUH
At 1 January
5HFRJQLVHG
Reversed
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At 31 December
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possible, the amount considered irrecoverable is written off against the receivables directly.
137
D &UHGLWULVN(continue)
5HFHLYDEOHV(continue)
Impairment losses (continue)
7KH&RPSDQ\GRHVQRWVSHFL¿FDOO\PRQLWRUWKHDJHLQJRIWKHORDQVDQGDGYDQFHVWRVXEVLGLDULHV+RZHYHUWKHUHLVQRLQGLFDWLRQWKDWWKHDPRXQWV
GXHIURPVXEVLGLDULHVRI5050DUHQRWUHFRYHUDEOHDVDWWKHHQGRIWKHUHSRUWLQJSHULRG
)LQDQFLDOJXDUDQWHHV
7KH &RPSDQ\ SURYLGHV XQVHFXUHG ¿QDQFLDO JXDUDQWHHV WR EDQNV LQ UHVSHFW RI FHUWDLQ EDQNLQJ IDFLOLWLHV H[WHQGHG WR FHUWDLQ VXEVLGLDULHV 7KH
Company monitors on an on-going basis the results of the subsidiaries and repayments made by the subsidiaries to ensure that they are able to
meet their obligations when due.
([SRVXUHWRFUHGLWULVNFUHGLWTXDOLW\DQGFROODWHUDO
7KHPD[LPXPH[SRVXUHWRFUHGLWULVNVEHLQJWKHRXWVWDQGLQJ¿QDQFLDOJXDUDQWHHVJUDQWHGWRWKHVXEVLGLDULHVDVDWHQGRIWKHUHSRUWLQJSHULRGLV
summarised as follows:
Bank guarantees
2WKHUORDQVDQGERUURZLQJVRXWVWDQGLQJDQGUHFRJQLVHGLQ¿QDQFLDOVWDWHPHQWV
7RWDOVHH1RWH
&RPSDQ\
50¶
50¶
169,909
_________
=========
232,292
_________
=========
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recognised as their fair values on initial recognition are not material and probability of the subsidiaries defaulting on the credit lines is remote.
E /LTXLGLW\ULVN
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principally from its various payables, loans and borrowings.
7KH*URXSPDLQWDLQVDOHYHORIFDVKDQGFDVKHTXLYDOHQWVEDODQFHVDQGEDQNLQJIDFLOLWLHVGHHPHGDGHTXDWHE\WKHPDQDJHPHQWWRHQVXUHDVIDUDV
SRVVLEOHWKDWLWZLOOKDYHVXI¿FLHQWOLTXLGLW\WRPHHWLWVOLDELOLWLHVZKHQWKH\IDOOGXHDQGWRPLWLJDWHWKHHIIHFWVRIÀXFWXDWLRQLQFDVKÀRZV
,WLVQRWH[SHFWHGWKDWWKHFDVKÀRZVLQFOXGHGLQWKHPDWXULW\DQDO\VLVFRXOGRFFXUVLJQL¿FDQWO\HDUOLHURUDWVLJQL¿FDQWO\GLIIHUHQWDPRXQWV
Maturity analysis
7KHWDEOHEHORZVXPPDULHVWKHPDWXULW\SUR¿OHRIWKH*URXS¶VDQGRIWKH&RPSDQ\¶V¿QDQFLDOOLDELOLWLHVZKLFKDUHQRQGHULYDWLYHVDVDWWKHHQGRI
the reporting period based on undiscounted contractual payments:
*URXS
6HFXUHGWHUPORDQV
- Unsecured revolving
FUHGLWV
&DUU\LQJ
DPRXQW
50¶
&RQWUDFWXDO
LQWHUHVW
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FDVKÀRZV
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50¶
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=========
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=========
=========
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Maturity analysis (continue)
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50¶
)LQDQFHOHDVHOLDELOLWLHV
8QVHFXUHG,VODPLF%RQGV 6HFXUHGWHUPORDQV
=========
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50¶
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50¶
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and 5.15
DQG
=========
=========
=========
=========
=========
-
422,576
=========
422,576
=========
=========
=========
=========
-
15,724
15,724
-
-
-
and 5.15
=========
=========
=========
=========
=========
&RPSDQ\
Other payables
,QWHUHVWEHDULQJ
1RQLQWHUHVWEHDULQJ
Financial guarantees*
=========
Other payables
15,724
8QVHFXUHG,VODPLF%RQGV )LQDQFLDOJXDUDQWHHV
%HLQJFRUSRUDWHJXDUDQWHHVJUDQWHGIRUEDQNLQJIDFLOLWLHVRIFHUWDLQVXEVLGLDULHV>DOVRVHHQRWHVDDQG@ZKLFKZLOORQO\EHHQFDVKHGLQ
WKHHYHQWRIGHIDXOWE\WKHVXEVLGLDULHV7KHVH¿QDQFLDOJXDUDQWHHVGRQRWKDYHDQLPSDFWRQJURXSFRQWUDFWXDOFDVKÀRZV
F 0DUNHWULVN
0DUNHWULVNLVWKHULVNWKDWFKDQJHVLQPDUNHWSULFHVVXFKDVIRUHLJQH[FKDQJHUDWHVLQWHUHVWUDWHVDQGRWKHUSULFHVULVNVWKDWZLOODIIHFWWKH*URXS¶V
¿QDQFLDOSRVLWLRQRUFDVKÀRZV
i.
=========
Currency risk
7KH*URXSLVRFFDVLRQDOO\H[SRVHGWRIRUHLJQFXUUHQF\ULVNRQEDQNEDODQFHVGHQRPLQDWHGLQDFXUUHQF\RWKHUWKDQWKHUHVSHFWLYHIXQFWLRQDO
currencies of Group entities. The currency giving rise to this risk is primarily United States Dollar (“USD”).
$VLWLVQRWSRVVLEOHWRSUHGLFWZLWKDQ\FHUWDLQW\WKHPRYHPHQWVRIIRUHLJQH[FKDQJHUDWHVWKLVULVNLVPDQDJHGRQDQRQJRLQJEDVLV$VDWWKH
HQGRIWKHUHSRUWLQJSHULRGWKH*URXSGRHVQRWKDYHDQ\RXWVWDQGLQJIRUZDUGIRUHLJQH[FKDQJHFRQWUDFWV
Exposure to foreign currency risk
7KHH[SRVXUHWRIRUHLJQFXUUHQF\ULVNDWWULEXWDEOHWRDFXUUHQF\ZKLFKLVRWKHUWKDQWKHIXQFWLRQDOFXUUHQF\RIWKH*URXSHQWLWLHVEDVHGRQWKH
carrying amounts as at the end of the reporting period was:
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Denominated in USD
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50¶
50¶
=========
=========
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50¶
50¶
=========
=========
$VWUHQJWKHQLQJRIWKH50DJDLQVW86'DWWKHHQGRIWKHUHSRUWLQJSHULRGZRXOGKDYHGHFUHDVHGHTXLW\DQGSRVWWD[SUR¿W
E\ WKH DPRXQWV VKRZQ LQ WKH HQVXLQJ SDJH7KLV DQDO\VLV LV EDVHG RQ IRUHLJQ FXUUHQF\ H[FKDQJH UDWH YDULDQFHV WKDW WKH *URXS&RPSDQ\
considered to be reasonably possible at the end of the reporting period. This analysis assumes that all other variables, in particular interest
rates, remain constant.
139
F 0DUNHWULVN(continue)
i.
Currency risk (continue)
Exposure to foreign currency risk (continue)
USD
Group
&RPSDQ\
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50¶
50¶
(
730)
=========
(
97)
=========
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currency to the amounts shown above, on the basis that all other variables remain constant.
ii. Interest rate risk
7KH*URXS¶VLQYHVWPHQWVLQ¿[HGUDWHWHUPGHSRVLWVDQGLWV¿[HGUDWHORDQVDQGERUURZLQJVDUHH[SRVHGWRDULVNRIFKDQJHLQWKHLUIDLUYDOXH
GXHWRFKDQJHVLQLQWHUHVWUDWHV7KH*URXS¶VYDULDEOHUDWHORDQVDQGERUURZLQJVDUHH[SRVHGWRDULVNRIFKDQJHLQFDVKÀRZVGXHWRFKDQJHV
LQLQWHUHVWUDWHV,QYHVWPHQWVLQHTXLW\VHFXULWLHVDQGVKRUWWHUPUHFHLYDEOHVDQGSD\DEOHVDUHQRWVLJQL¿FDQWO\H[SRVHGWRLQWHUHVWUDWHULVN
7KH*URXS¶VSROLF\LVWRPDQDJHLWVLQWHUHVWUDWHULVNRQDQRQJRLQJEDVLVWRHQVXUHWKDWWKHUHDUHQRXQGXHH[SRVXUHVWKHUHWR0DQDJHPHQW
H[HUFLVHVDFHUWDLQHOHPHQWRIGLVFUHWLRQRQZKHWKHUWRERUURZDW¿[HGRUÀRDWLQJLQWHUHVWUDWHVGHSHQGLQJRQWKHPDUNHWVLWXDWLRQDQGWKH
RXWORRNRIWKH¿QDQFLDOPDUNHWSUHYDLOLQJWKHQ
The investments in interest-earning assets are mainly short-term in nature and they are not held for speculative purposes but have been mostly
placed as term deposits and cash funds.
Exposure to interest rate risk
7KHLQWHUHVWUDWHSUR¿OHRIWKH*URXS¶VDQGRIWKH&RPSDQ\¶VVLJQL¿FDQWLQWHUHVWEHDULQJ¿QDQFLDOLQVWUXPHQWVEDVHGRQWKHLUFDUU\LQJDPRXQWV
as at the end of the reporting period was:
Fixed rate instruments
)LQDQFLDODVVHWV
Floating rate instruments
)LQDQFLDODVVHWV
)LQDQFLDOOLDELOLWLHV
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&RPSDQ\
50¶
50¶
50¶
50¶
( 130,000)
=========
( 300,037)
=========
=========
( 300,000)
=========
=========
=========
=========
=========
Interest rate risk sensitivity analysis
D )DLUYDOXHVHQVLWLYLW\DQDO\VLVIRU¿[HGUDWHLQVWUXPHQWV
7KH*URXSGRHVQRWDFFRXQWIRUDQ\¿[HGUDWH¿QDQFLDODVVHWVDQGOLDELOLWLHVDWIDLUYDOXHWKURXJKSUR¿WRUORVVDQGWKH*URXSGRHVQRW
designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the end
RIWKHUHSRUWLQJSHULRGZRXOGQRWDIIHFWSUR¿WRUORVV
A change of 100 basis points (bp) in interest rates at the end of the reporting period, taking into account the contractual repayments terms
RILWVÀRDWLQJUDWHLQVWUXPHQWVZRXOGKDYHLQFUHDVHGGHFUHDVHGHTXLW\DQGSRVWWD[SUR¿WRUORVVE\WKHDPRXQWVVKRZQLQWKHHQVXLQJ
page. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
140
F 0DUNHWULVN (continue)
ii. Interest rate risk (continue)
Interest rate risk sensitivity analysis (continue)
E &DVKÀRZVHQVLWLYLW\DQDO\VLVIRUYDULDEOHUDWHLQVWUXPHQWV
Floating rate instruments
Group
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ES
ES
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50¶
50¶
50¶
50¶
(
5,736)
(
436)
=========
5,736
436
=========
(
2,636)
1,066
=========
2,636
(
1,066)
=========
iii. Other price risk
(TXLW\SULFHULVNDULVHVIURPWKH*URXS¶VLQYHVWPHQWVLQHTXLW\VHFXULWLHV
0DQDJHPHQWPRQLWRUVDQGPDQDJHVWKHHTXLW\LQYHVWPHQWVRQLQGLYLGXDOEDVLV7KHH[SRVXUHWRHTXLW\SULFHULVNLVQRWPDWHULDODQGKHQFH
sensitivity analysis is not presented.
7KHFDUU\LQJDPRXQWVRIFDVKDQGEDQNEDODQFHVVKRUWWHUPUHFHLYDEOHVDQGSD\DEOHVDQGVKRUWWHUPERUURZLQJVUHDVRQDEO\DSSUR[LPDWHWKHLUIDLU
YDOXHVGXHWRWKHUHODWLYHO\VKRUWWHUPQDWXUHRIWKHVH¿QDQFLDOLQVWUXPHQWV
,WLVQRWSUDFWLFDEOHWRHVWLPDWHWKHIDLUYDOXHRIWKH*URXS¶VLQYHVWPHQWLQXQTXRWHGVKDUHVGXHWRWKHODFNRIFRPSDUDEOHTXRWHGPDUNHWSULFHVLQDQDFWLYH
market and the fair value cannot be reliably measured.
7KHWDEOHEHORZDQDO\VHV¿QDQFLDOLQVWUXPHQWVFDUULHGDWIDLUYDOXHDQGWKRVHQRWFDUULHGDWIDLUYDOXHIRUZKLFKIDLUYDOXHLVGLVFORVHGWRJHWKHUZLWKWKHLU
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50¶
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50¶
Financial assets
Other investments
Quoted shares
Unsecured revolving credits
6HFXUHGWHUPORDQV
11
=========
=========
=========
=========
11
=========
11
=========
=========
=========
130,000
=========
130,000
=========
130,000
=========
130,000
=========
11
=========
=========
=========
=========
11
=========
11
=========
=========
37
=========
=========
37
=========
37
=========
37
=========
Financial assets
Other investments
Quoted shares
6HFXUHGWHUPORDQV
8QVHFXUHG,VODPLF%RQGV
Finance lease liabilities
141
&RPSDQ\
)DLUYDOXHRI
¿QDQFLDO
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=========
=========
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Policy on transfer between levels
The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer.
Level 1 fair value
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measurement date.
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period.
Level 2 fair value
/HYHOIDLUYDOXHLVHVWLPDWHGXVLQJLQSXWVRWKHUWKDQTXRWHGSULFHVLQFOXGHGZLWKLQ/HYHOWKDWDUHREVHUYDEOHIRUWKH¿QDQFLDODVVHWVRUOLDELOLWLHVHLWKHU
directly or indirectly.
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DQGLQWHUHVWFDVKÀRZVGLVFRXQWHGDWWKHPDUNHWUDWHRILQWHUHVWDWWKHHQGRIWKHUHSRUWLQJSHULRG)RU¿QDQFHOHDVHVWKHPDUNHWUDWHRILQWHUHVWLV
determined by reference to similar lease arrangements.
Transfers between Level 1 and Level 2 fair values
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Level 3 fair value
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)DLUYDOXHVZLWKLQ/HYHOIRU¿QDQFLDOLQVWUXPHQWVQRWFDUULHGDWIDLUYDOXHZKLFKLVGHWHUPLQHGIRUGLVFORVXUHVSXUSRVHLVGHULYHGEDVHGRQGLVFRXQWHG
FDVKÀRZVXVLQJXQREVHUYDEOHLQSXWLHLQWHUHVWUDWH7KHHVWLPDWHGIDLUYDOXHZRXOGLQFUHDVHGHFUHDVHZKHQWKHLQWHUHVWUDWHVZHUHORZHUKLJKHU
&DSLWDOPDQDJHPHQW
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There were no changes in the Group’s strategy and approach on capital management during the year.
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QRWOHVVWKDQSHUFHQWRIWKHLVVXHGDQGSDLGXSFDSLWDOVH[FOXGLQJWUHDVXU\VKDUHVDQGVXFKVKDUHKROGHUV¶HTXLW\LVQRWOHVVWKDQ507KH
&RPSDQ\KDVFRPSOLHGZLWKWKLVUHTXLUHPHQW
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142
Within one year
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Identity of related parties
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GLUHFWO\RULQGLUHFWO\WRFRQWURORUMRLQWO\FRQWUROWKHSDUWLHVRUH[HUFLVHVLJQL¿FDQWLQÀXHQFHRYHUWKHSDUWLHVLQPDNLQJ¿QDQFLDODQGRSHUDWLQJGHFLVLRQVRUYLFH
YHUVDRUZKHUHWKH*URXSRUWKH&RPSDQ\DQGWKHSDUWLHVDUHVXEMHFWWRFRPPRQFRQWURO5HODWHGSDUWLHVPD\EHLQGLYLGXDOVRURWKHUHQWLWLHV
5HODWHGSDUWLHVDOVRLQFOXGHNH\PDQDJHPHQWSHUVRQQHOGH¿QHGDVWKRVHSHUVRQVKDYLQJDXWKRULW\DQGUHVSRQVLELOLW\IRUSODQQLQJGLUHFWLQJDQGFRQWUROOLQJ
the activities of the Group either directly or indirectly. The key management personnel include all the Directors of the Group, and certain members of senior
management of the Group.
7KH*URXSKDVUHODWHGSDUW\UHODWLRQVKLSVZLWKLWVVXEVLGLDULHVDVVRFLDWHVMRLQWYHQWXUHVNH\PDQDJHPHQWSHUVRQQHODQGVLJQL¿FDQWVKDUHKROGHUV
6LJQL¿FDQWUHODWHGSDUW\WUDQVDFWLRQV
6LJQL¿FDQWUHODWHGSDUW\WUDQVDFWLRQVRWKHUWKDQFRPSHQVDWLRQVWRNH\PDQDJHPHQWSHUVRQQHOVHH1RWHDQGWKRVHGLVFORVHGHOVHZKHUHLQWKH¿QDQFLDO
statements, are as follows:
Transactions with subsidiaries
Nature of transaction
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Interest income
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50¶
50¶
972)
=========
6,647)
=========
(
50¶
50¶
5,742
=========
6,029
=========
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(
Transactions with associates
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50¶
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Transaction with joint ventures
50¶
50¶
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=========
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Donation
50¶
50¶
56
=========
40
1,600
=========
50¶
50¶
52
=========
=========
Transaction with certain members of the key management personnel of the Group
Consultant fee paid
=========
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143
5HODWHGSDUWLHV (continue)
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with other related parties are as follows:
50¶
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The above related party transactions are based on negotiated terms.
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Solid Greenland Sdn. Bhd.
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7 May 2014
6HSWHPEHU
30 September 2014
5 November 2014
9 December 2014
100.0
100.0
100.0
100.0
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25 July 2013
17 October 2013
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ii. Changes in investments in existing subsidiaries

Additional investments arising from new shares issued by existing subsidiaries
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(“NCPSB”), settled in cash.
On 12 December 2014, Vista Megalink Sdn. Bhd. (“VMSB”) increased its issued and paid-up capital from RM2 to RM1,000,000 for cash.
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Decrease in investment in existing subsidiary
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controlling interests of RM124,000.

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owned subsidiary of the Group.
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ii.
Changes in investments in existing subsidiaries (continue)

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company, NESB for a cash consideration of RM2.
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at par. Since then, HFSB has become a wholly-owned subsidiary of PMSB.
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iii. Disposal of a subsidiary
Following the Group’s commitment to a plan to sell Total Reliability Sdn. Bhd. (“TRSB”) towards end of year 2013, on 21 January 2014, NLSB entered
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consideration of RM6,502,000. The disposal was completed in July 2014 and thereafter TRSB ceased to be the subsidiary of the Group.
The disposal of TRSB had the following effect on the Group’s assets and liabilities on the disposal date:
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Loss on disposal (Note 25)
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a. Decrease in investment in existing associates
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and RM70,526,000 respectively.
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ii.
Later, NESB also subscribed for additional 200,000 ordinary shares of RM1.00 each in KSSB for a cash consideration of RM200,000. The subscription
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38.1 Corporate guarantee
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38.2 Material litigation
On 10 January 2012, Naim Land Sdn. Bhd. (“NLSB”) received a Writ of Summons and Statement of Claim from a contractor seeking for, inter alia, a refund
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On 21 January 2014, the High Court decided in favour of the contractor. NLSB will appeal against the High Court’s decision and the appeal date has yet
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a. In January and March 2015 respectively, two foreign subsidiaries, namely Naimcendera Engineering & Construction Sendirian Berhad and Naim Vanua
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shareholders and relevant regulatory authorities.
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Share of retained earnings from associates
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RU/RVVHVLQWKH&RQWH[WRI'LVFORVXUHV3XUVXDQWWR%XUVD0DOD\VLD6HFXULWLHV%HUKDG/LVWLQJ5HTXLUHPHQWV, issued by the Malaysian Institute of Accountants
on 20 December 2010, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.
147
FINANCIAL STATEMENTS ``` STATEMENT BY DIRECTORS PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
Statement by Directors pursuant
to Section 169(15) of the Companies Act, 1965
In the opinion of the Directors,
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issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa Malaysia Securities Berhad.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
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Kuching,
Date: 14 April 2015
FINANCIAL STATEMENTS ``` STATUTORY DECLARATION PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
Statutory Declaration pursuant
to Section 169(16) of the Companies Act, 1965
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to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed
in Kuching in the State of Sarawak
on 14 April 2015
…………………………..………
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Before me: Level 5, Westmoore House,
Twin Tower Centre
Rock Road, Kuching, Sarawak
149
FINANCIAL STATEMENTS ``` INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF NAIM HOLDINGS BERHAD
Independent Auditors’ Report to the members of
Naim Holdings Berhad
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audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as
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Opinion
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in Malaysia.
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as auditors have been properly kept in accordance with the provisions of the Act.
b. We have considered the accounts and the audit reports of all the subsidiaries of which we have not acted as auditors, which are indicated in Note 5 to the
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by us for those purposes.
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the information has been properly compiled, in all material respects, in accordance with the Guidance on Special Matter No.1, Determination of Realised and
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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.
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Chartered Accountants
Kuching,
Date: 14 April 2015
150
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Other
Information
152
Analysis of Shareholdings
154
Top 10 Properties
155
Notice of Annual General
Meeting
151
OTHER INFORMATION ``` ANALYSIS OF SHAREHOLDINGS AS AT 16 APRIL 2015
Analysis of Shareholdings as at 16 April 2015
Authorised Share Capital
Issued and Paid-up Share Capital
Class of Shares
Voting rights
:
:
:
:
S,=(2)+2/',1*6
RM500,000,000 comprising RM500,000,000 shares of RM1.00 each
RM250,000,000 comprising RM250,000,000 shares of RM1.00 each
Ordinary Shares of RM1.00 each
1 vote per ordinary share
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7,150,000
3.02
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HSBC NOMINEES (ASING) SDN BHD
(;(037$1)25-3025*$1&+$6(%$1.1$7,21$/$662&,$7,2186$
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CITIGROUP NOMINEES (ASING) SDN BHD
&%1<)25',0(16,21$/(0(5*,1*0$5.(769$/8()81'
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RHB NOMINEES (TEMPATAN) SDN BHD
PLEDGED SECURITIES ACCOUNT FOR HASMI BIN HASNAN
3,250,000
1.37
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AMANAHRAYA TRUSTEES BERHAD
38%/,&,6/$0,&6(/(&775($685(6)81'
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2,417,500
1.02
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CITIGROUP NOMINEES (TEMPATAN) SDN BHD
(03/2<((63529,'(17)81'%2$5'5+%,19
15
CIMB GROUP NOMINEES (TEMPATAN) SDN BHD
CIMB ISLAMIC TRUSTEE BERHAD FOR PACIFIC DANA AMAN (3717 TR01)
1,790,200
0.76
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1,770,600
0.75
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DFA INVESTMENT DIMENSIONS GROUP INC
1,706,100
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152
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PUBLIC ISLAMIC OPPORTUNITIES FUND
1,475,000
0.62
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PUBLIC NOMINEES (TEMPATAN) SDN BHD
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ETIQA TAKAFUL BERHAD (FAMILY PIF EQ)
1,456,400
0.61
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AMSEC NOMINEES (TEMPATAN) SDN BHD
AMTRUSTEE BERHAD FOR PACIFIC PEARL FUND (UT-PM-PPF)
1,344,000
0.57
TA NOMINEES (TEMPATAN) SDN BHD
PLEDGED SECURITIES ACCOUNT FOR TAN KIT PHENG
1,310,000
0.55
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1,000,000
0.42
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PELITA HOLDINGS SDN BHD
1,000,000
0.42
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ISLAND HARVESTS SDN. BHD.
30,619,600
12.92
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27,406,900
11.57
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OTHER INFORMATION ``` TOP 10 PROPERTIES
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Land For
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OTHER INFORMATION ``` NOTICE OF ANNUAL GENERAL MEETING
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the 13th Annual General Meeting of Members of 1$,0+2/',1*6%(5+$' will
be held at Damai Beach Resort, Teluk Bandung Santubong, 93756 Kuching, Sarawak on Tuesday, 26 May 2015 at
10.00 a.m. for the following purposes:
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To approve Directors’ Fees.
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Company.”
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regulatory authorities, if applicable, the Directors be and are hereby empowered pursuant to Section 132D of the Companies Act 1965, to issue
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General Meeting of the Company.”
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hereby authorised to purchase such amount of ordinary shares of RM1.00 each in the Company as may be determined by the Directors of
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Company provided that:
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Company;
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will be allocated by the Company for the purchase of own shares; and
iii. the Directors of the Company may decide either to retain the shares purchased as treasury shares or cancel the shares or retain part of
the shares so purchased as treasury shares and cancel the remainder or to resell the shares or distribute the shares as dividends;
AND THAT such authority conferred by this resolution shall commence immediately and shall continue to be in force until the conclusion of the
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resolution of the shareholders of the Company in a general meeting.
AND THAT authority be and is hereby given to the Directors of the Company to act and to take all such steps and to do all things as are
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OTHER INFORMATION ``` NOTICE OF ANNUAL GENERAL MEETING (CONTINUE)
Notice of Annual General Meeting (continue)
To transact any other ordinary business of which due notice shall have been given.
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Kuching, Sarawak
Dated this 30 April 2015
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Companies Act 1965 are complied with.
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authorized nominee may appoint in respects of each omnibus account it holds.
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In line with the recommendation 3.3 of the Malaysian Code of Corporate Governance 2012, the Nominating Committee has assessed the
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for a cumulative term of more than nine (9) years, and upon its recommendation, the Board of Directors has recommended Datu (Dr.)
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ii. He performed his duty diligently and in the best interest of the Company.
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time and attention to his professional obligations and facilitated informed and balanced decision making process.
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This proposed resolution in relation to authority to issue shares pursuant to Section 132D of the Companies Act 1965, if passed, will
empower the Directors of the Company to issue and allot Ordinary Shares from the unissued capital of the Company up to an aggregate
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The general mandate sought for issue of shares is a renewal of the mandate that was approved by shareholders on 13 June 2014. The
Company did not utilize the mandate that was approved last year. The purpose of the renewal of the general mandate is to provide
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Please refer to the Statement to Shareholders in relation to The Proposed Renewal of Authority for Purchase of Own Shares dated 30 April
2015 for further information.
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The details of interest in securities of the Company (if any) held by the Directors are stated on page 153 of the Annual Report.
156
CDS account no.
of authorized nominee
585467-M (Incorporated in Malaysia)
Form of Proxy
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(FULL NAME AS PER NRIC IN BLOCK CAPITAL)
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of
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being a member of NAIM HOLDINGS BERHAD, hereby appoint
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(FULL ADDRESS)
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Meeting of the Company to be held at Damai Beach Resort, Teluk Santubong, 93756 Kuching, Sarawak, Malaysia on Tuesday 26 May 2015
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Ordinary Resolution 2
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Approve payment of Directors’ fee
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Re-election of Director : Datuk Hasmi Bin Hasnan
Re-election of Director : Professor Dato’ Abang Abdullah Bin Abang Mohamad Alli
Re-appointment of Auditors : Messrs KPMG as Auditors and authorising the
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Proposed renewal of authority to purchase own shares
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Dated this
day of
2015.
Number of shares held:
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Act 1965 are complied with.
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may appoint in respects of each omnibus account it holds.
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STAMP
The Company Secretary
1$,0+2/',1*6%(5+$'
9th Floor, Wisma Naim, 2½ Mile,
Rock Road 93200, Kuching, Sarawak, Malaysia.
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Annual Report - Naim Holdings Berhad

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