Annual Report 2015 Perak Corporation Berhad Incorporated in Malaysia (210915-U) Annual Report 2015
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PERAK CORPORATION BERHAD INCORPORATED IN MALAYSIA (210915-U) ANNUAL REPORT 2015 PERAK CORPORATION BERHAD INCORPORATED IN MALAYSIA (210915-U) ANNUAL REPORT 2015 page NOTICE OF ANNUAL GENERAL MEETING · · · · · · · · · · · · · · · · · · · · · · · · · · 2 CORPORATE INFORMATION · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 5 FINANCIAL HIGHLIGHTS · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·6 · CORPORATE STRUCTURE · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 7 · PROFILE OF DIRECTORS · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 8 CHAIRMAN’S STATEMENT • PENYATA PENGERUSI · · · · · · · · · · · · · · · · · · · · 12 BUSINESS OVERVIEW – NEW DEVELOPMENTS · · · · · · · · · · · · · · · · · · · · · · · 20 STATEMENT OF CORPORATE GOVERNANCE · · · · · · · · · · · · · · · · · · · · · · · · 27 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL · · · · · · · · · · 42 AUDIT COMMITTEE REPORT · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 46· · ADDITIONAL COMPLIANCE INFORMATION · · · · · · · · · · · · · · · · · · · · · · · · ·50 ANALYSIS OF SHAREHOLDINGS · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 51 · · SUMMARY OF PROPERTIES · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 53 · · STATEMENT OF DIRECTORS’ RESPONSIBILITIES · · · · · · · · · · · · · · · · · · · · · · 54 NOTICE OF ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the Twenty-fifth Annual General Meeting of the Company will be held at Amanjaya Convention Centre, Casuarina @ Meru Hotel, No. 1-C, Jalan Meru Casuarina, Bandar Meru Raya, 30020 Ipoh, Perak Darul Ridzuan on Wednesday, 25 May 2016 at 10:00 a.m. to transact the following businesses: AGENDA 1. To receive the Audited Financial Statements for the year ended 31 December [Please refer to Explanatory 2015 together with the Report of the Directors and Auditors thereon. Note] 2. To approve the increase in Directors’ fees for the year ended 31 December 2015 Resolution 1 and the payment of Directors’ fees thereon. 3. To re-elect the following Directors who retire in accordance with Article 80 of the Company’s Articles of Association: a) Dato’ Abd Karim bin Ahmad Tarmizi Resolution 2 b) Dato’ Aminuddin bin Md Desa Resolution 3 4. To re-appoint Tuan Haji Ab Rahman bin Mohammed as Director of the Company Resolution 4 to hold office until the conclusion of the next Annual General Meeting pursuant to Section 129(6) of the Companies Act, 1965. 5. To re-appoint Messrs Ernst & Young as Auditors of the Company and to authorise Resolution 5 the Directors to fix their remuneration. As special business to consider and, if thought fit, to pass the following resolution: 6. Ordinary Resolution – Proposed Shareholders’ Mandate for Recurrent Resolution 6 Related Party Transactions of a Revenue or Trading Nature “THAT approval be and is hereby given pursuant to Paragraph 10.09, Part E of Chapter 10 of Bursa Malaysia Securities Berhad’s Main Market Listing Requirements for the Company and/or its subsidiaries to enter into the Recurrent Related Party Transactions of a revenue or trading nature which are necessary for day-to-day operations with the Related Parties, as detailed in Section 2.2 of the Circular to Shareholders of the Company dated 29 April 2016, subject to the following: 2 ANNUAL REPORT 2015 | PERAK CORPORATION BERHAD (210915-U)(210915-U) NOTICE OF ANNUAL GENERAL MEETING (CONTINUED) (a) the transactions are carried out in the ordinary course of business on terms not more favourable to the Related Parties than those generally available to the public and not detrimental to minority shareholders of the Company; and (b) disclosure is made in the annual report of the aggregate value of transactions conducted pursuant to the shareholders’ mandate during the financial year based on the following information: (i) the type of the Recurrent Related Party Transactions made; and (ii) the names of the Related Parties involved in each type of the Recurrent Related Party Transactions made and their relationship with the Company. THAT the approval given in the paragraph above shall only continue to be in force until: (a) the conclusion of the next Annual General Meeting (“AGM”) of the Company, at which time it will lapse, unless by a resolution passed at the said AGM, the authority is renewed; (b) the expiration of the period within which the next AGM after the date it is required to be held pursuant to section 143(1) of the Companies Act, 1965 (“the Act”), but must not extend to such extension as may be allowed pursuant to section 143(2) of the Act; or (c) revoked or varied by resolution passed by the shareholders in general meeting; whichever is the earlier. AND THAT authority be and is hereby given to the Directors of the Company to complete and do all such acts and things (including executing all such documents as may be required) to give effect to the transactions contemplated and/or authorised by this Ordinary Resolution.” 7. To transact any other business appropriate to an AGM of which due notice shall have been given in accordance with the Act and the Company’s Articles of Association. By order of the Board Cheai Weng Hoong Company Secretary Ipoh 29 April 2016 ANNUAL REPORT 2015 | PERAK CORPORATION BERHAD (210915-U)(210915-U) 3 NOTICE OF ANNUAL GENERAL MEETING (CONTINUED) Notes: 1. A member entitled to attend and vote at the AGM is entitled to appoint a proxy/proxies who may but need not be a member/members of the Company to attend and vote in his/her stead and Section 149 (1)(b) of the Act shall not apply. 2. Where a member is an Exempt Authorised Nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number of proxies which the Exempt Authorised Nominee may appoint in respect of each omnibus account it holds. 3. When a member appoints more than one proxy the appointments shall be invalid unless he/she specifies the proportion of his/her shareholding to be represented by each proxy. 4. The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly authorised in writing or if the appointer is a corporation, either under its common seal or under the hand of an officer or attorney duly authorised. 5. The instrument appointing a proxy must be deposited at the Registered Office of the Company at D-3-7, Greentown Square, Jalan Dato’ Seri Ahmad Said, 30450 Ipoh, Perak Darul Ridzuan at least forty-eight (48) hours before the time appointed for holding the AGM or at any adjournment thereof. 6. Only members whose names appear in the Record of Depositors as at 19 May 2016 will be entitled to attend and vote at the above Meeting. 7. The registration for the above Meeting will commence on Wednesday, 25 May 2016 at 9:30 a.m. STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING Explanatory Note Audited Financial Statements for financial year ended 31 December 2015 The audited financial statements are for discussion only under Agenda 1, as they do not require shareholders’ approval under the provisions of Section 169(1) and (3) of the Companies Act 1965. Hence, this matter will not be put for voting. Resolutions 2 to 4 The profiles of the Directors standing for re-election are disclosed on pages 9 and 11 of the Annual Report and the details of their interest in the securities of the Company are disclosed under Analysis of Shareholdings on page 51 of the Annual Report. Resolution 6 Please refer to the Circular to Shareholders dated 29 April 2016 which is enclosed together with the Annual Report of the Company. 4 ANNUAL REPORT 2015 | PERAK CORPORATION BERHAD (210915-U)(210915-U) CORPORATE INFORMATION BOARD OF DIRECTORS PRINCIPAL PLACE OF BUSINESS No. 1-A, Blok A, Menara PKNP YB Dato’ Nasarudin bin Hashim DIMP, AMP, BPC, BCM Jalan Meru Casuarina Chairman, Non-Independent Non-Executive Bandar Meru Raya Dato’ Wan Hashimi Albakri bin Wan Ahmad Amin Jaffri DIMP 30020 Ipoh Non-Independent Non-Executive Perak Darul Ridzuan Tel : +6 (05) 501 9888 Tuan Haji Ab Rahman bin Mohammed Fax : +6 (05) 501 9999 Senior Independent Non-Executive Website : www.pkcorp.com.my Dato’ Abd Karim bin Ahmad Tarmizi DPMP Independent Non-Executive COMPANY SECRETARY Mr Cheai Weng Hoong (LS 05624) Dato’ Dr Vasan a/l Sinnadurai DPMP Independent Non-Executive AUDITORS Datuk Dr Wan Norashikin binti Wan Noordin DPSM, PMP Ernst & Young (AF: 0039) Independent Non-Executive Chartered Accountants Dato’ Aminuddin bin Md Desa DSDK Group Chief Executive Officer, Non-Independent PRINCIPAL BANKERS CIMB Bank Berhad Malayan Banking Berhad NOMINATION AND REMUNERATION COMMITTEE Dato’ Abd Karim bin Ahmad Tarmizi DPMP (Chairman) REGISTERED OFFICE Dato’ Wan Hashimi Albakri bin Wan Ahmad Amin Jaffri DIMP D-3-7, Greentown Square Dato’ Dr Vasan a/l Sinnadurai DPMP Jalan Dato’ Seri Ahmad Said Datuk Dr Wan Norashikin binti Wan Noordin DPSM, PMP 30450 Ipoh, Perak Darul Ridzuan Tel : +6 (05) 241 7762, 253 0760 Fax : +6 (05) 241 6761 AUDIT COMMITTEE Tuan Haji Ab Rahman bin Mohammed (Chairman) REGISTRAR Dato’ Dr Vasan a/l Sinnadurai DPMP Shared Services & Resources Sdn Bhd Datuk Dr Wan Norashikin binti Wan Noordin DPSM, PMP D-3-7, Greentown Square Jalan Dato’ Seri Ahmad Said MANAGEMENT TEAM 30450 Ipoh, Perak Darul Ridzuan Tel : +6 (05) 241 7762, 253 0760 Dato’ Aminuddin bin Md Desa DSDK Fax : +6 (05) 241 6761 Group Chief Executive Officer Perak Corporation Berhad STOCK EXCHANGE LISTING Jamal bin Mohd Aris Main Market,