PBA-AR2007.Pdf
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CONTENTS 02 VISION & MISSION 02 COMMITMENT 03 KEY CORPORATE OBJECTIVES 03 CORE VALUES 04 QUALITY POLICY 05 ENVIRONMENTAL POLICY 06 OCCUPATIONAL SAFETY & HEALTH POLICY 07 RISK MANAGEMENT POLICY 08 OUT-GOING CHAIRMANS MESSAGE 09 NEW CHAIRMANS MESSAGE 11 CEOS PROFILE 12 CEOS MESSAGE 14 CORPORATE INFORMATION 15 CORPORATE STRUCTURE 16 FINANCIAL HIGHLIGHTS 17 FINANCIAL CALENDAR 2007 18 DIRECTORS PROFILE 23 SENIOR MANAGEMENT TEAM 24 CORPORATE CALENDAR 28 CORPORATE SOCIAL RESPONSIBILITY 30 AWARDS RECEIVED BY PIHAK BERKUASA AIR PULAU PINANG (PBA) 31 AWARDS RECEIVED BY PERBADANAN BEKALAN AIR PULAU PINANG SDN. BHD. (PBAPP) REPORT FOR SUBSIDIARY COMPANY PERBADANAN BEKALAN AIR PULAU PINANG SDN. BHD. (PBAPP) 32 BOARD OF DIRECTORS 33 SENIOR MANAGEMENT TEAM 34 PENANG WATER SUPPLY STATISTICS 35 WATER TREATMENT PROCESS 36 PENANG STATE WATER SUPPLY INFRASTRUCTURE 37 OPERATIONS REVIEW 40 ADMINISTRATION REPORT 42 STATEMENT ON CORPORATE GOVERNANCE 46 STATEMENT ON INTERNAL CONTROL 48 AUDIT COMMITTEE REPORT 52 ADDITIONAL COMPLIANCE INFORMATION FINANCIAL STATEMENTS 54 DIRECTORS REPORT 57 STATEMENT BY DIRECTORS/ STATUTORY DECLARATION 58 REPORT OF THE AUDITORS TO THE MEMBERS 59 INCOME STATEMENTS 60 BALANCE SHEETS 62 STATEMENTS OF CHANGES IN EQUITY 64 CASH FLOW STATEMENTS 66 NOTES TO THE FINANCIAL STATEMENTS 106 ANALYSIS OF SHAREHOLDINGS 108 TOP 10 PROPERTIES OF THE GROUP 109 NOTICE OF ANNUAL GENERAL MEETING 111 NOTICE OF DIVIDEND ENTITLEMENT 112 STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING 113 PROXY FORM VISION Meeting all your water supply needs MISSION PBAPP will be the leading organisation in water supply COMMITMENT We will be environmentally sensitive, responsible, proactive, professional, innovative and committed to excellence and sustainable development. We will be responsible for the development of water supply and delivering the best possible service by being customer- oriented. 02 PBA HOLDINGS BHD (515119-U) KEY CORPORATE OBJECTIVES Uninterrupted water supply Customer satisfaction Skilled, competent and motivated workforce Effective teamwork Timely and orderly development of water resources Productive utilization of financial and other resources Continuous improvement in all fields Compliance with all relevant legislations Effective relations with government agencies and industrial organisations CORE VALUES Accountability Communication Teamwork Integrity On-Going Learning New Ways of Improvement PBA HOLDINGS BHD (515119-U) 03 QUALITY POLICY In line with its corporate objectives, Perbadanan Bekalan Provide the best possible training opportunities to Air Pulau Pinang Sdn Bhd (PBAPP) is fully committed encourage its employees to continuously upgrade towards continual improvement as it strives to provide their competency levels, knowledge and skills; high quality services and products that will satisfy and delight customers. Uphold its reputation as a model water supply organization in Malaysia; Accordingly, PBAPP will: Ensure the protection, preservation and conservation Continually improve and update its Quality of the environment; Management System which is based on international ISO9001:2000 standards; Provide a safe and healthy working environment for all its personnel; and Sustain a corporate culture driven by continual improvement by promoting and encouraging Ensure that all its personnel are fully committed innovation, teamwork, diligence and creativity, as towards promoting and implementing this quality well as a proactive approach to water supply services; management policy in all aspects of its operations and services. 04 PBA HOLDINGS BHD (515119-U) ENVIRONMENTAL POLICY In line with its corporate objectives, Perbadanan Bekalan Conduct its business in a professional manner with Air Pulau Pinang Sdn Bhd (PBAPP) is fully committed emphasis on measurable key performance indicators towards protecting, preserving and conserving the and results, good corporate governance and environment while striving to meet all of Penangs corporate social responsibility; water supply needs. Prevent and avoid, as far as possible, any form of Accordingly, PBAPP will: pollution by practicing proper procedures, implementing control and monitoring mechanism, Continually improve, update and expand its and conducting ISO14001:2004 audit practices Environmental Management System which is based and reviews; on international ISO14001:2004 standards; Comply with all related environmental legislative Strive to conduct its operations in a manner that is and legal standards, requirements and laws set by in harmony with nature; the Malaysian Government; and Reduce and/or control wastage of natural water Ensure that all its personnel are fully committed resources and consumption of energy and chemicals; towards promoting and implementing this environmental management policy in all aspects of its operations and services. PBA HOLDINGS BHD (515119-U) 05 OCCUPATIONAL SAFETY & HEALTH POLICY In line with its corporate objectives, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) is fully committed towards protecting, sustaining and supporting the well-being of its workforce. Accordingly, PBAPP will: Continually improve and update its Occupational Safety & Health Management System which is based on international OHSAS18001:1999 specification; Promote safe and healthy work practices in all its offices, complexes and installations by identifying the hazards, assessing the risks and implementing control measures; Ensure that all its business activities are conducted without compromising the safety and health of its employees, contractors, suppliers, customers and visitors; Prevent and avoid, as far as possible, any workplace mishap by practicing proper procedures, implementing control and monitoring mechanisms, and conducting OHSAS18001:1999 audit practices and reviews; Comply with all legislative and legal requirements and laws set by the Malaysian Government in relation to occupational safety and health; and Ensure that all its personnel are fully committed towards promoting and implementing this occupational safety & health management policy in all aspects of its operations and services. 06 PBA HOLDINGS BHD (515119-U) RISK MANAGEMENT POLICY Continuously identifying and assessing risks and improving control measures steered by clear guidelines for preventing, detecting and minimizing risks. Maintaining a continuous effort towards prioritizing and managing business risk based on the likelihood of occurrence (possibility) and magnitude of impact (severity) to: > Ensure business continuity; > Minimize any unexpected damage to reputation, shareholders value and confidence, and > Prevent capital leakage, wastage and loss of earnings. There shall be a continuous effort by management to create, promote and sustain a company-wide culture of risk awareness and management. Daily operating business risks shall be the primary responsibility of the management and employees of the Company whilst corporate risks and responsibilities shall remain with the Board. PBA HOLDINGS BHD (515119-U) 07 OUT-GOING CHAIRMANS MESSAGE TAN SRI DR. KOH TSU KOON Chairman, PBA Holdings Bhd. (resigned with effect from 18 April 2008) As the first and now the out-going Chairman of the PBA Group, I mention these past achievements and future challenges in my it is my duty and privilege to briefly report on the past and out-going message for three reasons. The first is to point out reflect on the future in my last message. that the past nine years have been extremely challenging yet rewarding for a Group that has evolved rapidly and strived In 1999, by virtue of my position as the Chief Minister of relentlessly to serve its customers better. Penang, I was appointed as the Chairman of Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP) when the State Government The second is that I wish to highlight and acknowledge the decided to corporatise the water supply agency. I was also achievements of the management and staff who often delivered privileged to serve as the Chairman of PBA Holdings Bhd outstanding results in the face of tough challenges. First led (PBAHB) since its public listing on Main Board of Bursa Malaysia by Dato Ir Liew Chook San (who retired in 2007), and now by in 2002. Ir. Jaseni Maidinsa, the men and women in the PBA workforce have proven that they are amongst the best in Malaysias water For the past nine years, my colleagues in the Board, all the supply industry. warga PBA and I have always strived to serve our stakeholders conscientiously with three considerations in mind - progress, I would also like to record my sincere appreciation to my fellow profitability and public responsibility. PBAHB Board Members for their invaluable support and contribution. Please accept my heartfelt appreciation for all for During my tenure, PBAPP managed to excel and gain recognition your kind support and co-operation. Together, we have shown as the best water supply corporation in Malaysia, serving almost that it is possible to succeed as a public-listed group that is all of Penangs population while sustaining the lowest water performance-driven, yet socially responsible. tariffs and lowest non-revenue water (NRW) percentage. PBAPP also secured three key international certifications - for continuous Thirdly, following a change of government in the State of improvement (ISO 9001:2000), environment-friendly operations Penang, after the March 2008 Malaysian General Election, the (ISO 14001:2004) and occupational health and safety (OHSAS time has come for me to make