WE DELIVER | WE CARE Committed at DMB, We Work Hand in Hand with Our Accountable Clients to Deliver the Best Solutions Any Where, Any Time
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DAYA MATERIALS BERHAD MATERIALS DAYA 200301033936 DAYA MATERIALS BERHAD 200301033936 (636357-W) (636357-W) www.dayagroup.com.my ANNUAL REPORT 2020 REPORT ANNUAL DAYA MATERIALS BERHAD 200301033936 (636357-W) D5-1-1, Solaris Dutamas No.1, Jalan Dutamas 1 50480 Kuala Lumpur. | Tel : 03 6205 3170 WE DELIVER WE CARE Fax : 03 6205 3171 annual report 2020 Contents Corporate Information 02 Corporate Structure 03 Financial Information 06 Profile of Directors 07 Senior Management Team 11 Management Discussion & Analysis 12 Sustainability Statement 15 Corporate Governance Overview Statement 20 Statement on Risk Management and 36 Internal Control Audit Committee Report 41 Financial Statements 46 Directors’ Responsibilities Statement on 164 Financial Statements Analysis of Shareholdings 165 Additional Compliance Information 168 List of Properties 169 Notice of Seventeenth Annual General Meeting 171 Proxy Form Committed WE DELIVER | WE CARE At DMB, we work hand in hand with our Accountable clients to deliver the best solutions any where, any time. Resolute Ethical 2 DAYA MATERIALS BERHAD [200301033936 (636357-W)] CORPORATE INFORMATION BOARD OF DIRECTORS DATUK LIM THEAN SHIANG DATUK ZULKARNAIN BIN MD EUSOPE Non-Independent Non-Executive Chairman Independent Non-Executive Director (Re-designated as Executive Chairman on 10 April (Appointed on 10 April 2019) 2019 and Non-Executive Chairman on 1 May 2020) SHAMSUL BIN SAAD AMINUDDIN BIN MOHD ARIF Group Managing Director Independent Non-Executive Director (Appointed on 10 April 2019) TUAN HAJI NORZAIN BIN ABDUL WAHAB ARUNASALAM A/L MUTHUSAMY Independent Non-Executive Director Independent Non-Executive Director (Appointed on 15 August 2019) AUDIT COMMITTEE REGISTERED OFFICE AUDITORS Chairman 12th Floor, Menara Symphony, Baker Tilly Monteiro Heng PLT Arunasalam A/L Muthusamy No. 5, Jalan Prof. Khoo Kay Kim, 201906000600 (LLP0019411-LCA) & AF0117 Independent Non-Executive Director Seksyen 13, 46200 Petaling Jaya, Chartered Accountants (Appointed on 15 August 2019) Selangor Darul Ehsan Baker Tilly Tower, Tel : +603-7890 4800 Level 10, Tower, 1, Avenue 5, Members Fax : +603-7890 4650 Bangsar South City, Aminuddin Bin Mohd Arif 59200 Kuala Lumpur. (Independent Non-Executive Director) Tel : +603-2297 1000 (Re-designated as member on HEAD/MANAGEMENT OFFICE Fax : +603-2282 9980 15 August 2019) D5-1-1, Solaris Dutamas, Tuan Haji Norzain Bin Abdul Wahab No 1, Jalan Dutamas 1, SHARE REGISTRAR (Independent Non-Executive Director) 50480 Kuala Lumpur, Malaysia. Boardroom Share Registrars Sdn. Bhd. Datuk Zulkarnain Bin Md Eusope Tel : +603-6205 3170 (Registration No. 199601006647 (Independent Non-Executive Director) Fax : +603-6205 3171 (378993-D)) (Appointed on 21 November 2019) Email : [email protected] 11th Floor, Menara Symphony, Website : www.dayagroup.com.my No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, COMPANY SECRETARY Selangor Darul Ehsan PRINCIPAL BANKERS Tel : 03-7890 4700 Chen Bee Ling Fax : 03-7890 4670 (MAICSA 7046517) Export-Import Bank of Malaysia Berhad SSM PC No. 202008001623 Hong Leong Bank Berhad AmIslamic Bank Berhad STOCK EXCHANGE LISTING AmBank (M) Berhad Main Market of Bursa Malaysia Securities Berhad Stock Short Name : DAYA Stock Code : 0091 ANNUAL REPORT 2020 3 CORPORATE STRUCTURE Daya Materials Berhad (“DMB”) was incorporated in Malaysia under the Companies Act, 1965 on 8 December 2003 as a public limited company. The principal activities of DMB are that of investment holding and provision BOARD OF DIRECTORS of management services to its subsidiary companies. The particulars of the subsidiaries and joint venture as at 15 October 2020, are as follows:- DATUK LIM THEAN SHIANG DATUK ZULKARNAIN BIN MD EUSOPE Non-Independent Non-Executive Chairman Independent Non-Executive Director (Appointed on 10 April 2019) (Re-designated as Executive Chairman on 10 April Effective 2019 and Non-Executive Chairman on 1 May 2020) Date and Place Issued and Paid- Equity SHAMSUL BIN SAAD Subsidiary Companies of incorporation up Share Capital Interest Principal Activities Group Managing Director AMINUDDIN BIN MOHD ARIF 1 Daya Polymer Sdn. 21-11-1994/ RM6,000,000 100.00% Manufacture of semiconductor and XLPE compounds Independent Non-Executive Director (Appointed on 10 April 2019) Bhd. (Registration No. Malaysia for cable and wire and trading in specialty chemicals, 199401038389 (324073-U)) related polymer compounds and hardware. It has TUAN HAJI NORZAIN BIN ABDUL WAHAB ARUNASALAM A/L MUTHUSAMY (“DPSB”) temporarily ceased its trading activities since the Independent Non-Executive Director Independent Non-Executive Director financial year ended 31 December 2007. (Appointed on 15 August 2019) 2 DMB Marketing & Trading 27-02-2006/ RM2.00 100.00% General trading, marketing and investment holding. Sdn. Bhd. (Registration No. Malaysia The Company did not have any revenue generating 200601005194 (724943-U)) activities during the current and previous financial year. (“DMTSB”) 3 Daya Infrastructure Group 09-07-2007/ RM100,000 100.00% Investment holding company. Sdn Bhd (Registration No. Malaysia 200701022227 (780242-P)) AUDIT COMMITTEE REGISTERED OFFICE AUDITORS (“DIFGSB”) 4 Daya Secadyme Sdn. 25-10-1989/ RM1,008,000 55.00% Supplying industrial chemicals and catalysts for the oil th Chairman 12 Floor, Menara Symphony, Baker Tilly Monteiro Heng PLT Bhd. (Registration No. Malaysia and gas industry, blending, mixing and supplying of Arunasalam A/L Muthusamy No. 5, Jalan Prof. Khoo Kay Kim, 201906000600 (LLP0019411-LCA) & AF0117 198901011240 (188542-W)) oilfield chemicals, environmental chemicals and other Independent Non-Executive Director Seksyen 13, 46200 Petaling Jaya, Chartered Accountants (“DSSB”) related products for the oil and gas industry (Appointed on 15 August 2019) Selangor Darul Ehsan Baker Tilly Tower, 5 Daya CMT Sdn. Bhd. 28-11-1990/ RM8,000,000 51.00% Providing industrial facilities management including Tel : +603-7890 4800 Level 10, Tower, 1, Avenue 5, (Registration No. Malaysia builder works, facility operation and maintenance Members Fax : +603-7890 4650 Bangsar South City, 199001016977 (208646-U)) services, upgrades, and retrofits, as well as design and Aminuddin Bin Mohd Arif 59200 Kuala Lumpur. (“DCMT”) build plant facility. (Independent Non-Executive Director) Tel : +603-2297 1000 6 Daya Offshore Construction 13-08-2008/ HKD 3,000,000 100.00% Center for regional procurement and trading as well as (Re-designated as member on HEAD/MANAGEMENT OFFICE Fax : +603-2282 9980 Limited (“DOCL”) Hong Kong international investments. 15 August 2019) 7 Daya Proffscorp Sdn. 24-08-1988/ RM1,650,000 58.50% Hiring of lorries, trucks, forklifts, cranes and heavy D5-1-1, Solaris Dutamas, Bhd. (Registration No. Malaysia machineries for loading and unloading, tally services Tuan Haji Norzain Bin Abdul Wahab No 1, Jalan Dutamas 1, SHARE REGISTRAR 198801005952 (173309-T)) and general trading. (“DPRO”) (Independent Non-Executive Director) 50480 Kuala Lumpur, Malaysia. Boardroom Share Registrars Sdn. Bhd. 8 Daya OCI Sdn. Bhd. 02-03-1994/ RM10,000,000 50.10% Supply agent of equipment and specialty chemicals Datuk Zulkarnain Bin Md Eusope Tel : +603-6205 3170 (Registration No. 199601006647 (Registration No. Malaysia for oil and gas process plants, a provider of installation 199401005459 (291138-U)) and maintenance services for air-conditioning and (Independent Non-Executive Director) Fax : +603-6205 3171 (378993-D)) (“DOCI”) ventilation system, a provider for automatic welding th (Appointed on 21 November 2019) Email : [email protected] 11 Floor, Menara Symphony, services for offshore pipeline installation, a provider Website : www.dayagroup.com.my No. 5, Jalan Prof. Khoo Kay Kim, of maintenance services for both onshore plants and Seksyen 13, 46200 Petaling Jaya, offshore facilities, a provider for warehousing and COMPANY SECRETARY Selangor Darul Ehsan forwarding agency. PRINCIPAL BANKERS Tel : 03-7890 4700 9 Seca Chemicals and 26-09-2005/ RM100,000 100.00% Dealing in petroleum, oil and gas products and Chen Bee Ling Fax : 03-7890 4670 Catalysts Sdn. Bhd. Malaysia consulting services. (MAICSA 7046517) Export-Import Bank of Malaysia Berhad (Registration No. 200501028637 (710772-A)) SSM PC No. 202008001623 Hong Leong Bank Berhad (“SCCSB”) AmIslamic Bank Berhad STOCK EXCHANGE LISTING AmBank (M) Berhad 10 Daya Offshore Construction 05-05-2004/ RM5,000,000 100.00% Dealing in project management, installation and design Sdn Bhd (Registration No. Malaysia engineering, fabrication, procurement and logistics, Main Market of 200401012895 (651398-P)) vessel operations, survey and diving operations. Bursa Malaysia Securities Berhad (“DOCSB”) Stock Short Name : DAYA 11 Daya Petroleum Ventures 06-06-2006/ RM350,000 51.00% Provision of drilling services, geological, petroleum Stock Code : 0091 Sdn. Bhd. (Registration No. Malaysia engineering, subsea and deep-water support services 200601016922 (736674-D)) and operations and maintenance services. (“DPV”) 12 Daya Maritime Limited 27-12-2013/ USD10 100.00% Shipping leasing business and other related services to (LL10243) (“DML”) Malaysia the oil and gas industry. 13 Daya Global 1 Limited 03-10-2014/ USD10 100.00% Shipping leasing business and other related services to (LL11253) (“DG1L”) Malaysia the oil and gas industry. 4 DAYA MATERIALS BERHAD [200301033936 (636357-W)] CORPORATE STRUCTURE cont’d Effective Date and Place Issued and Paid- Equity Subsidiary Companies of incorporation up Share Capital Interest Principal Activities 14 Daya Global 2 Limited