Tan Sri Datuk Sir Diong Hiew King @ Tiong Hiew King (“Tan Sri Tiong”), a major shareholder of the Company, is also the substantial shareholders of all the above acquirees whilst the major shareholders of the Company, TTSH and TSL, are also the substantial shareholders of all the above vendors.
12. Recurrent related party transactions of a revenue or trading nature (“RRPT”)
The significant related party transactions entered into during the financial year ended 31 August 2009 are disclosed in note 31 to the Financial Statements on pages 89 to 90 of this annual report. A breakdown of the aggregate value of the RRPT conducted pursuant to the shareholders’ mandate during the financial year where the aggregate value is equal to or more than the threshold prescribed under paragraph 10.09(1)(a) of the Listing Requirements, are set out below:-
Type of RRPT Name of Related Party(ies) Relationship with Actual Value as at RSB Group 31 August 2009
(RM)
Workshop management fee Deruan Sinar Sdn. Bhd. Note (A) 2,043,162
Sinar Tiasa Sdn. Bhd. Note (B) 383,462
Sub-Total 2,426,624
Transportation of crude Inter-Link Transport Sdn. Bhd. Note (C) 2,645,659 palm oil and palm kernel
Purchase of fresh fruit bunches Jayamax Plantation Sdn. Bhd. Note (D) 8,946,013
(“FFB”) Lubuk Tiara Sdn. Bhd. Note (E) 5,580,495
Pelita-Splendid Plantation Sdn. Bhd. Note (B) 704,061
Sub-Total 15,230,569
Purchase of fertiliser Rejang Green Agriculture Supplies Note (E) 8,668,944
and chemicals Sdn. Bhd.
Purchase of spare parts Rimbunan Hijau General Trading Note (F) 5,682,897 Sdn. Bhd.
Sin Hong Guan Sdn. Bhd. Note (B) 56,575
Sub-Total 5,739,472
Purchase of diesel Tiong Toh Siong & Sons Sdn. Bhd. Note (G) 5,009,529
Sales of FFB R H Selangau Palm Oil Mill Sdn. Bhd. Note (E) 7,179,104
Notes :-
(A) Connected to Tan Sri Tiong, TTSH, TSL, Datuk Tiong Thai King, Tiong Kiong King and Tiong Chiong Ie.
(B) Connected to Tan Sri Tiong, TTSH, TSL, Datuk Tiong Thai King, Tiong Kiong King and Tiong Chiong Ie.
(C) Connected to Tan Sri Tiong, TTSH, TSL, Rimbunan Hijau (Sarawak) Sdn. Bhd., TTSE, PAA, Datuk Tiong Thai King, Tiong Kiong King and Tiong Chiong Ie.
(D) Connected to Tan Sri Tiong, TTSH, TSL, Datuk Tiong Thai King and Tiong Kiong King.
(E) Connected to Tan Sri Tiong, TTSH, TSL, TTSE, Datuk Tiong Thai King, Tiong Kiong King and Tiong Chiong Ie.
(F) Connected to Tan Sri Tiong, TTSH, TSL, Rimbunan Hijau Southeast Asia Sdn. Bhd., Datuk Tiong Thai King, Tiong Kiong King and Tiong Chiong Ie.
(G) Connected to Tan Sri Tiong, TTSH, TSL, Tiong Chiong Ong, Datuk Tiong Thai King, Tiong Kiong King and Tiong
The directors have pleasure in submitting their report together with the audited financial statements of the Group and of the Company for the financial year ended 31 August 2009.
PRINCIPAL ACTIVITIES
The principal activities of the Company are investment holding and provision of management services. The principal activities of the subsidiary companies are disclosed in Note 9 to the financial statements.
There have been no significant changes in the nature of these activities during the financial year under review.
FINANCIAL RESULTS
Group Company
RM RM
Profit for the year 13,631,132 44,646,481
DIVIDENDS
A final dividend of 5.0 sen per ordinary share less income tax amounting to RM4,810,005 in respect of the financial year ended 31 August 2008 was paid on 19 March 2009.
The Board of Directors proposed a final dividend of 3.5 sen per ordinary share less tax amounting to RM3,367,004 in respect of the financial year ended 31 August 2009. The dividend is not recognised as a liability at the balance sheet date and will be accounted for as an appropriation of retained profits in the financial year ending 31 August 2010 after approved by the members at the forthcoming Annual General Meeting.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in the statements of changes in equity.
ISSUE OF SHARES AND DEBENTURES
The Company has not issued any shares or debentures during the financial year.
DIRECTORS OF THE COMPANY
The directors who served since the date of last report are:- Tan Sri Datuk Diong Hiew King @ Tiong Hiew King Tiong Chiong Ong
Tiong Kiong King Tiong Chiong Ie Bong Wei Leong Tiong Ing Ming
In accordance with Article 81 of the Company’s Articles of Association, Tiong Ing Ming and Tiong Chiong Ong shall retire from the board at the forthcoming Annual General Meeting and being eligible, offer themselves for re-election.
Tan Sri Datuk Diong Hiew King @ Tiong Hiew King shall retire pursuant to Section 129(1) of the Companies Act 1965 and a separate resolution will be proposed for his re-appointment as director under the provision of Section 129(6) of the said act to hold office until the next Annual General Meeting of the Company.
DIRECTORS’ INTERESTS
The directors holding office at 31 August 2009 and their interests in the share capital of the Company, as recorded in the register of directors’ shareholdings were as follows:-
Holdings registered in Other holdings in which directors the name of directors as at are deemed to have an interest as at 1.9.2008 Bought Sold 31.8.2009 1.9.2008 Bought Sold 31.8.2009 Tan Sri Datuk Diong Hiew
King @ Tiong Hiew King 300,000 - - 300,000 69,243,794 100,000 - 69,343,794
Tiong Chiong Ong 458,400 82,800 - 541,200 1,000 25,000 - 26,000
Tiong Kiong King 813,600 1,000,000 - 1,813,600 3,207,300 - 1,000,000 2,207,300
Tiong Chiong Ie 200,000 - - 200,000 484,000 - - 484,000
Bong Wei Leong - - - -
Tiong Ing Ming 25,000 - - 25,000 - - - -
DIRECTORS' BENEFITS
Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits as disclosed in Note 22 to the financial statements) by reason of a contract made by the Company or a related corporation with the director or with a firm of which he is a member, or with a company in which he has a substantial financial interest.
Neither during nor at the end of the financial year was the Company a party to any arrangements whose object was to enable the directors to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.
OTHER STATUTORY INFORMATION
(a) Before the income statements and balance sheets of the Group and of the Company were made out, the directors took reasonable steps:-
(i) to ascertain the action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts and have satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts; and
(ii) to ensure that any current assets, other than debts, which were unlikely to realise in the ordinary course of business their values as shown in the accounting records had been written down to an amount which they might be expected so to realise.