We help the community We ensure We operational focus on efficiency business We look for We ensure shareholder quality to value standards RESILIENT & COMMITTED ANNUAL REPORT 2013 COVER RATIONALE RESILIENT & COMMITTED Over the years, Puncak Niaga has demonstrated a resilient commitment to delivering quality services despite the many challenges faced. Our commitment to set higher standards of excellence throughout all aspects of our operations remains core to the Group’s continual robust performance. By continuously implementing efficient services and employing effective human capital development, as well as innovative technologies, processes and operational systems, we are ensuring the Group’s sustainable growth today and tomorrow. Recognising our responsibility to serve our various stakeholders and the communities in areas where the Group operates and realising the impact of our efforts upon them, we remain focused on creating sustainable businesses that have a positive impact on our stakeholders. Our venture into the dynamic Oil and Gas sector and construction sector underscores our strategy of creating new revenue streams and sustainable growth for the Group. United as one team and driven by our passion to excel in all that we do, we remain focused to prove our mettle as a resilient and committed corporation. th ANNUAL GENERAL 17 MEETING Date : 26 June 2014 (Thursday) Time : 10.00 am Venue : Concorde 1 Concorde Hotel Shah Alam Level 2, No. 3 Jalan Tengku Ampuan Zabedah C9/C 40100 Shah Alam Selangor Darul Ehsan VISION & MISSION OUR VISION To Be A Leading Regional Integrated Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil & Gas Sector. OUR MISSION To meet the increasing challenges in the demand for high quality water supply, wastewater and environmental systems through the continuous implementation of high quality standards, efficient services, human capital development, innovative technologies and operational systems. To share our experience and offer our expertise through Smart Business Partnerships, Public Private Partnerships or other innovative business models. To actively participate in local, regional and global business opportunities with linkages to the Company’s core activities, waste water & solid waste management, environment management and oil & gas sectors. To actively support and participate in programmes and activities aimed at uplifting the community’s living standards and value systems in line with the aspirations of Vision 2020. To address national and international concerns pertaining to the protection, conservation and enhancement of the natural environment we live in. PUNCAK NIAGA HOLDINGS BERHAD l Annual Report 2013 1 CONTENTS 1 Vision & Mission 4 Puncak Values ABOUT US 5 About This Report 6 Executive Chairman’s Message 16 Corporate Profile 18 Corporate Information 21 PNHB Group Fact Sheet 24 Our Role In The Water Supply System 25 Our Role In The Wastewater System 26 Milestones 30 Puncak News 32 Corporate Achievements 34 2013 Key Highlights OUR STRUCTURE 35 Corporate Structure 36 Organisation Structure - PNSB 38 Organisation Structure - SYABAS 40 Organisation Structure - POG 41 Organisation Structure - GOM Resources OUR LEADERSHIP 42 Board Of Directors’ Profile 52 Board Of Directors 54 Key Personnel Profile - PNSB 60 Key Personnel Profile - SYABAS 70 Key Personnel Profile - Sino Water 71 Key Personnel Profile - POG & GOM Resources PERFORMANCE REVIEW 76 Five-Year Financial Highlights 77 Five-Year Group Performance 78 Share Price & Volume Traded 80 Financial Calendar 2 PUNCAK NIAGA HOLDINGS BERHAD l Annual Report 2013 CONTENTS OPERATIONS REVIEW 82 Operations Review - Puncak Niaga (M) Sdn Bhd 87 Operations Review - Syarikat Bekalan Air Selangor Sdn Bhd 93 Operations Review - Puncak Oil & Gas Sdn Bhd, GOM Resources Sdn Bhd And KGL Ltd. 96 Business Expansion 100 Delivering Service Excellence 104 Delivering Quality CORPORATE RESPONSIBILLITY 112 Valuing Our People 128 Preserving Our Environment 139 Engagement With Our Community 144 Corporate Events ACCOUNTABILITY 148 Statement On Corporate Governance 172 Statement On Risk Management And Internal Control 174 Audit Committee Report 180 Risk Management Policy & Report 184 Corporate Disclosure Policy 185 Corporate Social Responsibility Policy 186 Health, Safety And Environmental Policy 187 Investor Relations Policy & Report 190 Quality Policy & Report 191 Statement Of Directors’ Responsibility For Preparation Of Financial Statements FINANCIAL STATEMENTS 194 Financial Statements OTHER INFORMATION 368 Analysis On Securities Of Company 374 List Of Properties 376 GRI Index NOTICE OF AGM 384 Notice Of Annual General Meeting 388 Statement Accompanying The Notice Of Annual General Meeting • Proxy Form • Corporate Directory PUNCAK NIAGA HOLDINGS BERHAD l Annual Report 2013 3 PUNCAK VALUES OUR CompaNY’S VALUES, THE PUNCAK VaLUES SHAPE OUR ORGANISATIONAL CULTURE AND GUIDE THE way WE RUN OUR BUSINESS. THEY ARE INTEGRATED INTO OUR BUSINESS PROCESSES AND OUR CORE VALUES. At PUNCAK, we are and continuously seek to be: PASSIONATE about our business for sustainable performance. UNITED as one in our corporate responsibility strategy to align with our Vision to be the Leading Regional Integrated Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil & Gas Sector. NURTURE our human capital towards an exemplary workforce. CORPORATE GOVERNANCE guides the way we run our business in an evolving global business environment. ACCOUNTABLE for all our actions and engagement process with our stakeholders. KNOWLEDGEABLE in all aspects of our business operations and continue to be the trusted and reliable provider of clean water supply. 4 PUNCAK NIAGA HOLDINGS BERHAD l Annual Report 2013 ABOUT THIS REPORT The GRI G3.1 Content Index which can be found on pages 376 Puncak Niaga Holdings Berhad to 383 of this Annual Report serves as a navigation tool and our (“PNHB”) is committed to the disclosure on each indicator will reflect on this. We will continue to highest level of integrity and improve the level of disclosures in our future Reports. In order to quantify the progression of our CSR sustainability transparency in our business. milestones, the achievements in 2013 have been compared This 2013 Integrated Report against previous years. Certain regulatory performance data contained in PNHB’s 2013 Annual Report is subject to regulatory covers both the financialaudit. This Report is available to all stakeholders in hard copy on and operational aspects of request and can be downloaded from our corporate website. our business and provides Reporting Period: a clear and comprehensive 1 January to 31 December 2013 Boundary representation about our The Report refers to the period 1/1/2013-31/12/2013 (unless performance to stakeholders. indicated otherwise at certain points), and: Throughout this report, we have provided a focused insight - refers to all activities of PNHB Group (including principal into the way we address sustainability across the business, the subsidiaries) challenges we face and the progress that we have made. Each - addresses all operations of the PNHB Group (offices, products year, we strive to continuously apply new and innovative solutions and sales) and are proud to show how sustainability is now firmly established - contains quantitative and qualitative results for all indicators within our management. Our approach to sustainability underpins presented for the last three years (unless otherwise specified) our commitment to act in a responsible and ethical way. This Report reflects our activities over 2013 and our progress towards Feedback our goals. All comments, thoughts and remarks can be directed to: PUNCAK NIAGA HOLDINGS BERHAD We operate in a resource constrained business and for us, Wisma Rozali, No. 4, Persiaran Sukan sustainability is not an option. It is integrated in every aspect of Seksyen 13, 40100 Shah Alam our business. We care about our customers, people, community Selangor Darul Ehsan and the environment as they form an interconnected link in our Telephone: 03 5522 8589 business. Our integrated report reflects our commitment to Fax: 03 5522 8598 value in the short, medium and long term. Underlying our good Email: [email protected] sustainability practice is an unchanging objective to ensure that we uphold the highest standards of management and responsible control. This is reflected in the various systems and processes that we have in place to manage our environmental, social and governance issues. This integrated Report also discusses the interests of our stakeholders and how we are always endeavouring to fulfil our obligations. The principle framework used is the Global Reporting Initiatives (“GRI”), GRI G3.1 Guidelines. This Report has been prepared to adhere to an application level of A. Other guidelines include the Bursa Malaysia Securities Berhad CSR Guidelines as well as the ISO 26000 Guidance on Social Responsibility. Where possible, we have provided quantitative and qualitative data to describe the required indicators. Our focus has been on those issues that are material to our business which best describes our impact and challenges. PUNCAK NIAGA HOLDINGS BERHAD l Annual Report 2013 5 YBhg Tan Sri Rozali Ismail Executive Chairman of PNHB Group 6 PUNCAK NIAGA HOLDINGS BERHAD l Annual Report 2013 EXECUTIVE CHAIRMAn’S MESSAGE Dear valued Shareholders and Stakeholders, Overall, 2013 was a year in which the Group continued to demonstrate its resilience