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01 ANNUAL REPORT 2015 CONTENTS Notice of Annual General Meeting 2 - 8 Statement accompanying the Notice of Annual General Meeting 9 Corporate Information 10 Financial Highlights 11 Directors' Profile 12 - 14 Managing Director's Statement 15 - 16 Statement on Corporate Social Responsibility 17 Statement on Corporate Governance 18 - 26 Statement of Risk Management and Internal Control 27 - 28 Audit Committee Report 29 - 32 Statement of Directors' Responsibility 33 Other Information required by the Main Market Listing Requirements of Bursa Malaysia Securities Berhad 34 - 35 Directors' Report 36 - 39 Statement by Directors 40 Statutory Declaration 40 Independent Auditors' Report 41 - 42 Statements of Comprehensive Income 43 Statements of Financial Position 44 Statements of Changes in Equity 45 - 46 Statements of Cash Flows 47 - 48 Notes to the Financial Statements 49 - 112 Supplementary Information 113 List of Properties owned by the Group 114 Analysis of Shareholdings 115 - 116 Proxy Form Enclosed 02 ANNUAL REPORT 2015 NOTICE OF ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN THAT the Twenty-second (22nd) Annual General Meeting of Suiwah Corporation Bhd (or “the Company”) will be held at Sunshine Banquet Hall, Level 4, Sunshine Square Complex, 1, Jalan Mayang Pasir, 11950 Bayan Baru, Penang on Thursday, 26 November 2015 at 11.00 a.m. for the following purposes: AS ORDINARY BUSINESS:- 1. To receive the Audited Financial Statements for the year ended 31 May 2015 together with the Reports Resolution 1 of the Directors and Auditors thereon. 2. To approve the declaration of a first and final single tier dividend of 6% for the financial year ended Resolution 2 31 May 2015. 3. To re-elect the following Directors who are retiring in accordance with the Company’s Articles of Association: Article 87 (a) Datin Cheah Gaik Huang; Resolution 3 (b) Y.B. Senator Dato’ Haji Mohd Suhaimi bin Abdullah; Resolution 4 (c) Jen Shek Voon Resolution 5 Article 89 (a) Hwang Shin Hung Resolution 6 4. To pass the following resolution pursuant to Section 129 of the Companies Act, 1965 as ordinary resolution: “THAT Dato’ Ahmad Hassan bin Osman who is over the age of seventy years and retiring in accordance Resolution 7 with Section 129 of the Companies Act, 1965, be hereby re-appointed as Director of the Company and to hold office until the conclusion of the next Annual General Meeting.” 5. To approve the payment of directors’ fees of Ringgit Malaysia Two Hundred Thirty Nine Thousand and Resolution 8 Six Hundred (RM239,600) only for the year ended 31 May 2015. 6. To re-appoint Messrs. Ernst & Young as Auditors of the Company for the ensuing year and to authorise Resolution 9 the Directors to fix their remuneration. AS SPECIAL BUSINESS:- 7. To consider and if thought fit, to pass the following resolutions with or without modification: - 7.1 ORDINARY RESOLUTION: AUTHORITY TO ISSUE AND ALLOT SHARES PURSUANT TO SECTION 132D OF THE COMPANIES ACT, 1965 “THAT, subject to Section 132D of the Companies Act, 1965 (“Act”), the Articles of Association Resolution 10 of the Company, other applicable laws, guidelines, rules and regulations and approvals of the relevant governmental and/or regulatory authorities, the Directors be and are hereby empowered to issue and allot shares in the Company, at any time to any person(s) other than a Director or major shareholder of the Company or person connected with any Director or major shareholder of the Company and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion deem fit, provided that the aggregate number of shares issued pursuant to this resolution does not exceed ten per centum (10%) of the issued and paid-up share capital of the Company (excluding treasury shares) for the time being AND THAT the Directors be and are 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 commence immediately upon the passing of this resolution and continue to be in force until the conclusion of the next Annual General Meeting of the Company.” 03 ANNUAL REPORT 2015 NOTICE OF ANNUAL GENERAL MEETING (CONTD.) 7.2 ORDINARY RESOLUTION: PROPOSED RENEWAL AND NEW SHAREHOLDERS’ MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE INVOLVING DATO’ HWANG THEAN LONG, DATIN CHEAH GAIK HUANG, HWANG POH CHOO, HWANG SIEW PENG, HWANG SHIN HUNG, SUIWAH HOLDINGS SDN BHD AND SUIWAH SUPERMARKET SENDIRIAN BERHAD “THAT approval be and is hereby given to the Company’s subsidiaries to enter into and give Resolution 11 effect to the recurrent related party transactions of a revenue or trading nature involving Dato' Hwang Thean Long, Datin Cheah Gaik Huang, Hwang Poh Choo, Hwang Siew Peng, Hwang Shin Hung, Suiwah Holdings Sdn Bhd and Suiwah Supermarket Sendirian Berhad (hereinafter referred to as "Related Parties") as specified in Section 2.3 under Part A of the Circular dated 30 October 2015, and falling within the ambit of Part E, Paragraph 10.09 of Chapter 10 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, which are necessary for the day-to-day operations and undertaken in the ordinary course of business of the Company, on terms not more favourable to Related Parties than those generally available to the public and not detrimental to minority shareholders of the Company; THAT such approval unless revoked or varied by the Company in general meeting shall continue to be in full force and effect until: (i) the conclusion of the next Annual General Meeting ("AGM") of the Company following the general meeting at which this mandate was passed, at which time it will lapse, unless by a resolution passed at the general meeting whereby the authority is renewed; or (ii) the expiration of the period within which the next AGM of the Company after the date it is required to be held pursuant to Section 143(1) of the Companies Act, 1965 ("the Act") (but shall not extend to such extension as may be allowed pursuant to Section 143(2) of the Act); or (iii) revoked or varied by resolution passed by the shareholders of the Company in a general meeting; whichever is the earlier; THAT the above mandate is subject to annual renewal and disclosure will be made in the annual report of the aggregate value of transactions conducted by the Group. AND THAT the Directors of the Company be authorised to complete and do all such acts and things (including executing all such documents as may be required) as they may consider expedient or necessary to give effect to the above mandate.” 04 ANNUAL REPORT 2015 NOTICE OF ANNUAL GENERAL MEETING (CONTD.) 7.3 ORDINARY RESOLUTION: PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE INVOLVING DATUK HAJI RADZALI BIN HASSAN AND HOZONE SDN BHD “THAT approval be and is hereby given to the Company’s subsidiaries to enter into and give Resolution 12 effect to the recurrent related party transactions of a revenue or trading nature involving Datuk Haji Radzali bin Hassan and person connected to him, namely Hozone Sdn Bhd (hereinafter referred to as "Interested Persons") as specified in Section 2.3 under Part A of the Circular dated 30 October 2015, and falling within the ambit of Part E, Paragraph 10.09 of Chapter 10 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad which are necessary for the day-to-day operations and undertaken in the ordinary course of business of the Company, on terms not more favourable to Interested Persons than those generally available to the public and not detrimental to minority shareholders of the Company; THAT such approval unless revoked or varied by the Company in general meeting shall continue to be in full force and effect until: (i) the conclusion of the next Annual General Meeting ("AGM") of the Company following the general meeting at which this mandate was passed, at which time it will lapse, unless by a resolution passed at the general meeting whereby the authority is renewed; or (ii) the expiration of the period within which the next AGM of the Company 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 (iii) revoked or varied by resolution passed by the shareholders of the Company in a general meeting; whichever is the earlier; THAT the above mandate is subject to annual renewal and disclosure will be made in the annual report of the aggregate value of transactions conducted by the Group. AND THAT the Directors of the Company be authorised to complete and do all such acts and things (including executing all such documents as may be required) as they may consider expedient or necessary to give effect to the above mandate.” 7.4 ORDINARY RESOLUTION: PROPOSED RENEWAL OF SHAREHOLDERS’ MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE INVOLVING A DIRECTOR OF THE COMPANY’S SUBSIDIARY, NAMELY LOOI TIK MIOW “THAT approval be and is hereby given to the Company’s subsidiaries to enter into and give Resolution 13 effect to the recurrent related party transactions of a revenue or trading nature involving a Director of the Company’s subsidiary, namely Looi Tik Miow (hereinafter referred to as "Interested Director") as specified in Section 2.3 under Part A of the Circular dated 30 October 2015, and falling within the ambit of Part E, Paragraph