On behalf of the board of directors, I am pleased to present the annual report and audited accounts of the group and company for the financial year ended 31 March 2004. Various other business opportunities are being explored with a view to diversifying the business activities of the company. The board's participation in all 7 board meetings can be seen in the statement accompanying the notice of the twentieth ordinary general meeting.
The board's fee is approved at the ordinary general meeting by the shareholders following a recommendation from the board. The total board remuneration paid or to be paid or otherwise made available to all the company's board members during the financial year is as follows:-. The number of board members in the Company whose income from the Company falls within the following band is:-.
The Board of Directors of the Company is pleased to present the report of the Audit Committee for the financial year ended 31 March 2004. The members of the Audit Committee will elect a Chairman from among themselves who will be an Independent Director.
Authority
In the event of any vacancy in the Audit Committee resulting in a breach of the Bursa Securities Listing Requirements, the vacancy must be filled within three (3) months.
Duties
Encik Idris has no family relationship with any director and/or major shareholder of the Company and there is no business agreement with the Company in which he has a personal interest. Dato' Shaharuddin has no family relationship with any director and/or major shareholder of the Company and there is no business arrangement with the Company in which he has a personal interest. Choong does not have any family relationship with any director and/or major shareholder of the Company and there is no business agreement with the Company in which he has a personal interest.
Wu has no family relationship with any director and/or major shareholder of the Company and has no business arrangement with the Company in which he has a personal interest. Encik Kushairi has no family relationship with any director and/or major shareholder of the Company and has no business arrangement with the Company in which he has a personal interest. The directors present their annual report to the members together with the audited financial statements of the Group and the Company for the year ended 31 March 2004.
The main activities of the Company are flour milling and trading of related products. The new ordinary shares issued during the year ranked pari passu in all respects with the existing ordinary shares of the Company.
March 2002
March 2003
The main activities of the Group consist of the transport and sales of premixed flour and its related products. The financial statements of the Group and Company have been prepared according to the historical cost convention, except as disclosed in this summary of significant accounting policies. The financial statements comply with the relevant approved accounting standards in Malaysia and the provisions of the Companies Act, 1965.
Impairment loss is recognized for the amount by which the asset's book value exceeds its recoverable amount. At the acquisition date, the fair values of the subsidiaries' net assets are determined and these values are reflected in the consolidated financial statements. The excess of the acquisition cost over the fair value of the Group's share of the subsidiaries' identifiable net assets at the acquisition date is reflected as goodwill in the consolidation.
Where necessary, adjustments are made in the subsidiaries' accounts to ensure consistency between accounting practices and those of the group. Minority interests are measured at the minority's share of the fair value of the acquired company's identifiable assets and liabilities after the acquisition. Marketable securities (within current assets) are recognized at the lower of cost price and market value.
By-products are valued at cost, which is calculated as part of the cost of production based on the weighted average selling price for the year. Net realizable value is the estimated selling price in the ordinary course of business, less cost of completion and selling expenses. Assets purchased under hire purchase agreements are included in property, plant and equipment and the capital element of hire purchase commitments are included in borrowings.
The capital component of the lease purchase term is used to reduce the outstanding obligations. Wages, salaries, paid leave and bonuses are accrued in the year in which the related services are provided by Group employees. Details of the Group's employee stock option plan are set out in Note 21(b) to the financial statements.
The accounting value of the monetary assets approximates the fair value due to the short maturity period of these instruments. The overall objective of the Group's financial risk management is to minimize the potential negative effects of these risks on the Group's financial performance.
March 2004
DIRECTORS WHO ARE STANDING FOR RE-ELECTION AT THE TWENTIETH ANNUAL GENERAL MEETING OF THE COMPANY
DETAILS OF ATTENDANCE OF DIRECTORS AT BOARD MEETINGS
PLACE, DATE AND TIME OF THE TWENTIETH ANNUAL GENERAL MEETING Place : Alamanda Room, Dorsett Regency, 172, Jalan Imbi, 55100 Kuala Lumpur
FURTHER DETAILS OF INDIVIDUALS WHO ARE STANDING FOR ELECTION AS DIRECTORS No individual is seeking election as a Director at the Twentieth Annual General Meeting of the Company
Please mark with an "X" in the appropriate box next to the resolutions how you would like your proxy to vote. If no instructions are given, this form shall be used to authorize the proxy to vote at its own discretion.). The proportion of my/our share represented by my/our proxy/proxies is as follows:-.
In the case of voting by show of hands, the first proxy must vote on my/our behalf. A member entitled to attend and vote may appoint a proxy to attend and vote in his place. A proxy may, but need not, be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act, 1965 do not apply to the Company.
A member is not entitled to appoint more than two (2) proxies to attend and vote in place of the member. If a member appoints two (2) proxies, the appointments are void unless he specifies the proportion of his holdings to be represented by each proxy. Where a member is an authorized nominee as defined in the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one (1) proxy in respect of each securities account it holds of ordinary shares of the Company to the credit of the said .
KUANTAN FLOUR MILLS BERHAD
KFM O FFICE A DDRESSES
