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04/2016 Quarter Report 04/2016 QUARTER REPORT STATE TRADING ORGANIZATION PLC PUBLISHED ON 30.01.2017 CONTENTS Human Resources 3 Major Projects 5 Corporate Events 6 Marketing and Promotions 9 CSR Events 10 Board Activities 11 Corporate Governance Code Compliance 14 Share Activities 18 Financials 19 Declaration 22 2 HUMAN RESOURCES Oct 2016 – Dec 2016 Local Foreign Total No. of staff at beginning of Oct 2016 1768 270 2038 No. of staff Employed during Oct - Dec 2016 45 17 62 No. of staff Resigned / Terminated during Oct - Dec 2016 62 18 80 No. of staff at end of Dec 2016 1751 269 2020 Short term Courses Social Media Strategies, Brand Authority & Credibility Fundamentals of Risk Management Advanced PA Masterclass Strategic Procurement, Negotiation & Cost Reduction Techniques Hitachi VRF training Incoterm, Shipping Import & Export Documentation & Procedures & Export Incentives Internal Audit for Board & Audit Committee Effective Problem Solving & Decision Making Occupational & Corporate Fraud Workshop Preparing & Managing full set of account in GST regime Managing Time Increasing Work Efficiency Training on quality assurance for pharmacists, coordinators, managers and internal audit In house Trainings Quality Assurance Training Basic Fire Awareness Training 3 STO RECREATION CLUB STO inter department Futsal Tournament STO group companies Futsal Tournament 4 MAJOR PROJECTS STATUS % Project Complet Current Status Start Date End Date ed Mechanical, 2007 - Engineering, Radisson Hotel Structural 37% Furnishing and August 2017 Hulhumale' works started Glazing works on 14-Oct-2011 going. 10 Storey Building Finishing works at Umar Shopping 98% March 2014 February 2017 ongoing Arcade Tank foundation works ongoing. Funadhoo 15% Birth platform June 2015 July 2017 Expansion Project repairing works ongoing. Site cleanup and foundation works West Harbor Food ongoing. 5% October 2016 July 2017 Court Project Steel Structure fabrication works in progress. Ekulhivaru Island 5% Agreement signed. January 2017 June 2019 Resort 5 CORPORATE EVENTS Signing with HEMAS Pharmaceuticals Inauguration of FSM Vessels On 11th October 2016, STO and HEMAS On 30th October 2016, Fuel Supplies Pharmaceuticals signed an agreement on Maldives (FSM) new vessels named Handhi, providing quality products at a lower cost. Meemas and Maatholhi were inaugurated. Signing with Maldives Finance Leasing Company. Signing with Amana Takaful On 20th October 2016, STO and Maldives On 31st October 2016, STO and Amana Finance Leasing Company signed an MOU on Takaful signed a MOU on providing Amana providing lifestyle leases for STO staff. Takaful insurance services at all STO pharmacies. 6 STO Home Improvement Bashi “Habeys Hukuru with STO” Mubaraaiy 2016 STO held “Habeys Hukuru with STO” at Rasfannu on 25th November 2016 to On 20th November 2016, STO Home celebrate 3 successful years of the Improvement Bashi Mubaraaiy 2016 Government. Events such as free tastings, commenced with a total of 16 teams. The hydro-flying shows and face painting took final match was played on 28th November place. In addition, Maldivian Idol contestants 2016. Hulhumale Women’s Sports were the and Bodu beru were part of this event. champion team of the tournament. 7 Maldives Investment Forum 2016 STO Celebrated 52 Years of Service STO took part in the Maldives Investment On 20th December 2016, STO celebrated 52 Forum 2016 held at New Delhi, India. STO years of service by conducting an assembly was a Platinum Partner of the forum. for all staff located in Male’. 8 MARKETING AND PROMOTIONS STO Construction Power mix Promotion Devondale Milk Powder Promotion. STO Construction Power mix promotion Devondale milk powder promotion by STO began on 17th October 2016 and ended on Supermart was held from 13th December 10th December 2016. This promotion was 2016 and will end on 15th February 2016. conducted in association with Maldivian and Coupons are given to customers from STO customers were offered chances for winning Supermart, STO Wholesale Centre and amazing gifts. Regional Outlets. STO Warehouse Sale STO Warehouse Sale began on 6th November 2016 and ended on 10th November 2016. This promotion was conducted at STO No.07 Koshi. Products from STO Home Improvement and STO Supermart was on sale. 9 CSR EVENTS Handover of Recycle Dustbins STO Reef Cleaning 2016 On 15th December 2016, STO handed over th On 6 October 2016, STO’s Annual Reef Recycle dustbins to Ministry of Environment Cleaning event was held at Hulhumale’. This and Energy. event was conducted in association with various Dive Clubs and NGOs. Training on Defibrillation (Nihon Kohden) A specialist of Nohon Kodhden provided Signing ceremony between STO and training for health care professionals of IGMH National Drug Agency and Hulhumale’ on Defibrillation, in collaboration with STO. On 27th November 2016, STO and National Drug Agency signed an agreement on providing jobs to National Drug Agency’s rehabilitation program clients. 10 BOARD ACTIVITIES Board Meetings Office on 29th September 2016 Decided to purchase an Oil Tanker, There were 6 meetings held during the Approved to introduce restaurant / quarter and attendance of Directors to the café concept at Trade Centre and meeting were as follows; former Umar Shopping Arcade Building, Quarter 03/2016 report was Position in Name Attendance presented and approved Board Issues identified at the Non-Executive Meeting were presented and discussed Ahmed Niyaz Former 5/5 Chairman A policy and procedure on Corporate Governance was approved Hussain Salim Chairman 1/1 Approved Hajj trips for 4 staff of STO Mohamed Discussed on finding investors for Radisson Hotel Project Budget 2017 was presented and approved Ahmed Shaheer Managing 6/6 Updates were presented on the Director progress of Board Committees and discussed Mohamed Director 4/6 Mihad MIFCO Acquisition Amir Mansoor Director 5/6 It was decided to integrate MIFCO within STO Group as a subsidiary with 99.99% Aishath Director 6/6 shares of STO and 0.01% shares of Allied Rayaheen Insurance Company of the Maldives. MIFCO Shareef was transferred to STO after its negative net assets were balanced. Aishath Rafiyya Director 5/6 Changes to Board Mohamed Director 6/6 th Farshath On 6 December 2016, Privatization and Corporatization Board sent a directive, informing the removal of Mr. Ahmed Niyaz (former Chairman of STO) and the Major Board Decisions appointment of Mr. Hussain Salim Some major decisions of the Board included; Mohamed to the post. Decided to acquire Maldives Industrial No further changes were brought to the Fisheries Company (MIFCO) Ltd, Board during the quarter. following the decision by President 11 Nomination and Remuneration Shareholding Structure Committee There were no changes to the shareholding There was 1 meeting held during the structure of the Company. As such the quarter and the member’s attendance to Government holds 81.6% while the Public the meetings were as follows; holds 18.3%. Position in Name Attendance Audit Committee Committee There were 2 meetings held during the Aishath Rafiyya Chairperson 1/1 quarter and the member’s attendance to the meeting was as follows; Aishath Rayaheen Member 1/1 Shareef Position in Name Attendance Committee Amir Mansoor Member 1/1 Amir Mansoor Chairman 2/2 Aishath Major Committee discussions and Rayaheen Member 2/2 decisions include; Shareef Discussions were made on the Mohamed compliance to Committee charter Member 2/2 Farshath Discussions were made on compliance to Committee decisions Discussed on the Board diversity, composition and conduct. Major Committee discussions and decisions include; Reviewed STO and its group companies management letters and implementation status of audit recommendations Some of the department heads presented department audit reports with implementation status Quarter 03/2016 progress report of internal audit was presented Budget 2017 was presented and discussed before presenting for Board approval 12 Corporate Governance and Risk Committee Compliance Committee There was 1 meeting held during the There was 1 meeting held during the quarter and the member’s attendance to quarter and the member’s attendance to the meetings were as follows; the meetings were as follows; Position in Name Attendance Position in Committee Name Attendance Committee Mohamed 1/1 Chairman Aishath 1/1 Farshath Rayaheen Chairman Aishath 0/1 Shareef Member Rafiyya Aishath 1/1 Member Amir 1/1 Rafiyya Member Mansoor Mohamed 1/1 Member Farshath Major Committee discussions and decisions include; Major Committee discussions and Updates were provided on decisions include; establishment of Risk function in STO Discussed the Risk framework Discussions were made on the compliance to Committee charter Discussions were made on compliance to Committee decisions Discussed on document archiving and steps required to enhance this process 13 COMPLIANCE TO CG CODE Provision Compliance Details The Board of Directors comprise of 7 Directors. Effective Board 1.1 Complied None of the Directors hold directorship in more than 3 public listed companies. There are 2 Composition of female directors in the Board effective March 1.2 Complied Board 2016. A 21 day notice period was given to the shareholders to submit names for Directorship. The major shareholder was informed through letter. Candidates were interviewed and Nomination/re- evaluated. Recommendations were made to 1.3 Complied election of Directors the Board and the Board decided for Mr. Mohamed Farshath and Mr. Ibrahim Latheef to compete for the post at the
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