Annual Report 2006
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Puncak Niaga Holdings Berhad (416087-U) Wisma Rozali, No. 4, Persiaran Sukan, Seksyen 13, 40100 Shah Alam, Selangor Darul Ehsan Tel : 603 - 5522 8589 Fax : 603 - 5522 8598 E-mail : [email protected] Website : www.puncakniaga.com.my “Malaysia’s Water Specialist” Puncak Niaga Holdings Berhad Puncak Niaga Holdings Annual Report 2006 Annual Report 2006 SUSTAINABLE GROWTH Contents 3 Vision & Mission Statements 4 Notice of Annual General Meeting 6 Statement Accompanying the Notice of Annual General Meeting 8 Corporate Information 10 Fact Sheet 16 Corporate Profile 18 Corporate Structure 19 Organisation Structure: PNSB 20 Organisation Structure: SYABAS 22 Our Role in the Water Supply System 23 Corporate Achievements 24 Five-Year Financial Highlights 24 Financial Calendar 25 Financial & Share Performance 28 Board of Directors 35 Senior Management in PNSB 38 Senior Management in SYABAS 44 Executive Chairman Speaks 50 Operations Review: PNSB Water Treatment Activities 56 Operations Review: SYABAS Water Distribution Activities 66 Environment & Community 78 Corporate Calendar of Events 94 Water News 100 Statement on Corporate Governance 110 Statement on Internal Control 112 Audit Committee Report 117 Risk Management Policy & Report 119 Investor Relations Policy & Report 121 Quality Policy & Report 122 Corporate Disclosure Policy 123 Distribution Schedule of Equity Securities & Properties 127 Financial Report 2006 213 Proxy Form Annual Report 2006 1 Annual Report 2006 OPERATIONS REVIEW The Group focused on further enhancements in Non Revenue Water activities, a capital repayment to shareholders, and the establishing of a leading-edge research and development centre (see pages 50 - 63). FINANCIAL REVIEW Revenue rose 24.7% to RM1,428.1 million, profit before taxation shot up 86.6% to RM367.3 million, and basic earnings per share rose from 30.80 sen to 101.51 sen (see page 139). ENVIRONMENT AND COMMUNITY REVIEW We placed stronger emphasis on corporate social responsibility, the environment, health and safety. We believe that they are intrinsically linked and that they fall under the wider banner of sustainable development (see page 66). 2 Puncak Niaga Holdings Berhad Our Vision TO BE THE LEADING AND DYNAMIC INTEGRATED WATER SERVICES COMPANY Our Mission • To provide a synergy of socio-economic products and services in the realm of water treatment, management and distribution and other related businesses. • To cater to the increasing challenges in the demand for high quality water production and distribution through the continuous implementation of high quality standards, efficient services, human resources development, innovative technology and operational systems. • To actively participate in regional and global business opportunities with linkages to the Company’s core activities and related interests. • To actively support and participate in programmes and activities aimed at uplifting the community’s living standards and value systems in line with the aspirations of Vision 2020. • To address national and international concerns pertaining to the protection, conservation and enhancement of the natural environment we live in. Annual Report 2006 3 NOTICE OF ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN THAT the Tenth Annual General Meeting of Puncak Niaga Holdings Berhad (416087-U) will be held at Concorde I, Concorde Hotel Shah Alam, Level 2, No. 3, Jalan Tengku Ampuan Zabedah C9/C, 40100 Shah Alam, Selangor Darul Ehsan on Thursday, 28 June 2007 at 9.30 a.m. for the following purposes:- RESOLUTION 1 1. To receive the Audited Financial Statements of the Company for the financial year ended 31 December 2006 and the Reports of the Directors and Auditors thereon. RESOLUTION 2 2. To declare a final tax-exempt dividend of 8 sen per share in respect of the financial year ended 31 December 2006 as recommended by the Directors of the Company. 3. To re-elect the following Directors of the Company who retire by rotation pursuant to Articles 98 and 99 of the Company’s Articles of Association:- RESOLUTION 3 a. Yang Berbahagia Dato’ Ruslan Hassan RESOLUTION 4 b. Tuan Syed Danial Syed Ariffin RESOLUTION 5 c. Yang Berhormat Tan Sri Dato’ Seri Dr Ting Chew Peh 4. To re-elect the following Director of the Company who retires by rotation pursuant to Article 103 of the Company’s Articles of Association:- RESOLUTION 6 a. Yang Amat Mulia Tengku Dato’ Rahimah Almarhum Sultan Mahmud RESOLUTION 7 5. To re-appoint Messrs Ernst & Young as the Auditors of the Company and to authorise the Directors of the Company to fix their remuneration. AS SPECIAL BUSINESS To consider and, if thought fit, to pass the following Ordinary Resolution:- RESOLUTION 8 6. Allotment Of Shares Pursuant To Section 132D Of The Companies Act, 1965 “THAT subject always to the Companies Act, 1965, the Articles of Association of the Company and the approvals of the relevant governmental/regulatory authorities, the Directors of the Company be and are hereby empowered, pursuant to Section 132D of the Companies Act, 1965, to issue shares in the Company, from time to time, and upon such terms and conditions and for such purposes as the Directors of the Company may deem fit provided that the aggregate number of shares issued pursuant to this resolution does not exceed ten per centum (10%) of the issued share capital of the Company for the time being AND THAT the Directors of the Company be and are hereby also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad AND FURTHER THAT such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company.” 7. To transact any other ordinary business of which due notice shall have been given. 4 Puncak Niaga Holdings Berhad NOTICE OF ANNUAL GENERAL MEETING NOTICE OF DIVIDEND ENTITLEMENT AND PAYMENT Notes:- 1. A proxy need not be a member of the Company and the provision of NOTICE IS ALSO HEREBY GIVEN THAT subject to the approval of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the the shareholders of the Company at the Tenth Annual General Company. A member shall not be entitled to appoint more than two Meeting, a final tax-exempt dividend of 8 sen per share for the (2) proxies to attend and vote at the Meeting provided that where a financial year ended 31 December 2006, will be paid on 8 August member is an authorised nominee as defined in the Securities 2007 to Depositors whose names appear in the Record of Industry (Central Depositories) Act, 1991, it may appoint up to two (2) Depositors of the Company on 18 July 2007. proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. Where a member appoints two (2) proxies, the A Depositor shall qualify for entitlement to the dividends only in appointments shall be invalid unless he specifies the proportions of respect of:- his holdings to be represented by each proxy. a. shares transferred into the Depositor’s Securities Account 2. The instrument appointing a proxy shall be in writing under the hand before 4.00 p.m. on 18 July 2007 in respect of transfers; and of the appointer or his attorney duly authorised or if such appointer is a corporation, it must be either under its seal or under the hand of b. shares bought on Bursa Malaysia Securities Berhad on a cum an officer or attorney duly authorised. entitlement basis according to the Rules of Bursa Malaysia Securities Berhad. 3. The instrument appointing the proxy must be deposited at the Registered Office of the Company at 10th Floor, Wisma Rozali, No. 4, Persiaran Sukan, Seksyen 13, 40100 Shah Alam, Selangor Darul Ehsan not less than 48 hours before the time set for holding the Meeting or any adjournment thereof. BY ORDER OF THE BOARD 4. Explanatory Note On Special Business: Resolution 8: TAN BEE LIAN The Ordinary Resolution proposed under item 6, if passed, will give (MAICSA 7006285) the Directors of the Company, from the date of the above Meeting, Secretary authority to issue and allot ordinary shares from the unissued capital of the Company for such purposes as the Directors of the Company Shah Alam consider would be in the interest of the Company. This authority will, 6 June 2007 unless revoked or varied at a General Meeting, expire at the next Annual General Meeting of the Company. Annual Report 2006 5 STATEMENT ACCOMPANYING THE NOTICE OF ANNUAL GENERAL MEETING 1. BOARD MEETINGS In 2006, the Board met five (5) times at the Board Room on 26th Floor, Suite 2601-2606, Plaza See Hoy Chan, Jalan Raja Chulan, 50200 Kuala Lumpur. The details of the respective Directors’ attendance at the Board Meetings are as follows:- No. of Meetings Name of Director Designation attended % Tan Sri Rozali Ismail Executive Chairman 4 80 Dato’ Matlasa Hitam Managing Director 5 100 Dato’ Ruslan Hassan Non-Independent 5 100 Non-Executive Director Dato’ Ir Lee Miang Koi Non-Independent 4 80 Non-Executive Director Syed Danial Syed Ariffin Executive Director, Operation I 5 100 Tan Sri Dato’ Hari Independent Non-Executive 5 100 Narayanan Govindasamy Director Tan Sri Dato’ Seri Independent Non-Executive 5 100 Dr Ting Chew Peh Director Datuk Dr Rahman Ismail Independent Non-Executive 5 100 Director Tan Seng Lee Executive Director, Finance 5 100 Tengku Dato’ Rahimah Non-Independent 2 100 Almarhum Sultan Mahmud Non-Executive Director (appointed on 1 August 2006 and re-designated to Non-Independent Non-Executive Director on 1 January 2007) 2. DATE, TIME AND VENUE OF THE TENTH ANNUAL GENERAL MEETING The Tenth Annual General Meeting of Puncak Niaga Holdings Berhad will be held as follows:- Date : Thursday, 28 June 2007 Time : 9.30 a.m.