The heavy industry department is involved in the maritime sector from both a commercial and a n a v a l p e r s p e c t i v e n e . We are optimistic that there will be organic growth in our divisions in the coming year.
Dear shareholders,
The Pharmaceutical Division achieved a profit of RM71mil, representing a 10% contribution to the Group's bottom line. We maintain that once this project shifts into full gear, the division should be able to contribute to the group's bottom line.
This came into focus as CPO prices took a hit in the first three quarters of the year, trading within a narrow range of RM2,230 to RM2,485 per MT. Negative factors dragging down CPO prices included the elimination of the duty-free CPO export quota along with historically high palm oil inventories.
These conditions resulted in an operating profit of RM131 million for the year under review, down from RM206 million a year earlier. Meanwhile, the global economic slowdown affected demand for vegetable oil, which then put downward pressure on CPO prices.
Furthermore, the prospect of lower palm oil supplies pushed CPO prices up to RM2,680 per MT in the fourth quarter. The new tilting sterilizer installed in Segaria Palm Oil Mill in Sabah Using the Cantas cutter.
These strong results were mainly due to the sale of commercial plots in our Mutiara Damansara development, as well as the sale of 183 apartments in Ampang. The results were mainly due to the successful completion of the sale of two commercial plots in Mutiara Damansara and the strong take-up of residential units in Taman Mutiara Rini, Johor.
The Real Estate Division performed exceptionally well in 2013 and led the way in terms of profit contribution to the Group, posting a profit of RM215 million compared to RM161 million last year. The MRT will be located above Persiaran Surian and connected to Surian Tower, en route to the Curve, Mutiara Damansara Commercial Center and corporate offices.
As part of our continuous effort to raise the standard of our hotels, we have completed the renovation of 364 hotel rooms in The Royale Bintang Kuala Lumpur. Ice Skating Rink, The Royale Chulan Damansara Bunga Emas Restaurant, The Royale Chulan Kuala Lumpur.
RM 1,947 million
The pharmaceutical division posted a profit of RM71 million compared to RM80 million last year. The Manufacturing Division recorded a profit of RM71 million, a significant increase from last year's RM43 million.
The division was impacted by a downward revision of the profit margin for the Littoral Combat Ship (LCS) project. Great progress was made throughout the year as we laid the foundation for the construction of the Littoral Combat Ship (LCS).
RM 2,503 million
With the commencement of the next phase of the project, BN Shipyard continued discussions with the Royal Malaysian Navy (RMN), the Ministry of Finance and the Ministry of Defense on the scope of the project's offer. In our Lumut shipyard, we are upgrading the infrastructure and facilities in preparation for the physical construction of the LCS.
RM (89) million
MRO services for the navigation equipment and communications systems of RMN vessels underwent a refit at the Lumut yard, managed by BHIC Electronics and Technologies Sdn Bhd. We have expanded our MRO services into the aviation sector, which offers great potential for the division as we continue to grow in this industry.
Boustead Petroleum Marketing sdn Bhd (BHPetrol) registered a profit of RM137 million in 2013 compared to RM148 million in 2012. As a result of these efforts, we won the Bronze Award in the Motor Fuel Segment of the Putra Brand Awards 2013.
RM 5,289 million
Certified by the Construction Industry Development Board of Malaysia, these industrialized building systems have gained increasing acceptance by the construction industry. UAC undertakes a number of research and development initiatives to keep pace with the challenging environment in the construction industry and intends to develop new construction systems and products to stay ahead of the market.
RM 140 million
Boustead engineering sdn Bhd (BesB) suffered a decline, as there was a noticeable lack of projects coupled with the completion of the mechanical and engineering package with klia2. Strong customer management, especially in the insurance sector, proved the right strategy by delivering a set of positive results.
FinAnce &
Along with these initiatives, the bank has provided professional development opportunities to improve the standard of its workforce. The bank's subsidiary, Affin Islamic Bank Berhad, recorded a lower profit of RM79 million (2012: RM100 million).
RM 154 million
The division recorded a profit of RM103 million compared to RM110 million a year ago. To increase market presence and increase awareness of its offerings, the Bank held various road shows and promotional campaigns during the year to reward.
RM 103 million
Affin Holdings Berhad registered a record profit before tax of RM854 million compared to RM827 million in the previous year. Affin Investment Bank Berhad (AIBB) reported a profit of RM84 million compared to RM90 million in the last financial year.
This remains the cornerstone of the Boustead Group's role in society, because as our nation develops, we are acutely aware of the need to provide all segments of society with meaningful opportunities. The Group's numerous corporate social responsibility initiatives are not only aimed at improving and developing our human capital, but also contribute to disadvantaged groups and care for the environment, with a view to ensuring that Malaysians from all walks of life have the chance to thrive.
ResPOnsiBility
As a responsible corporate citizen, reaching out to society is not just an obligation, but a calling for the group. Tan Sri Lodin presents a fake check to the widow of Sarjan Zal-Azri _Boustead Holdings Berhad.
We provided funds for school books and uniforms as well as arranging motivational programs for the students. For the local communities around our plantation estates, we have provided financial assistance as well as school bags and shoes for needy students.
Five-year Financial Highlights
Financial calendar
Tan Sri Ghazali was the Chairman of Lembaga Tabung Angkatan Tentera (LTAT) from 23 February 1988 to 22 February 2007. Tan Sri Ghazali is the Chairman of UAC Berhad and he also sits on the Boards of Boustead Plantations Berhad and Boustead Properties.
Profile of Directors
- tan sri Dato’ seri lodin wok kamaruddin Deputy Chairman/Group Managing Director
- Dato’ Ghazali Mohd Ali Divisional Director, Property
- laksamana Madya tan sri Dato’ seri Ahmad Ramli Hj. Mohd nor (R)
- Mr. Daniel ebinesan Group Finance Director
- Datuk koo Hock Fee Divisional Director, Industrial
- Dato’ Farshila emran Managing Director, Pharmaniaga Berhad
- Datuk Mokhtar khir Director of Operations, Boustead Hotels and Resorts
- Mr. chow kok choy Director of Operations, Plantations
- Mr. tan kim thiam Managing Director, Boustead Petroleum Marketing
He is the chairman of the audit committee and the nomination committee and a member of the remuneration committee. He is the chairman of the remuneration committee and a member of the audit committee and the nomination committee.
The Audit Committee met twice with the external auditors during the year, without management being present. All members of the Audit Committee must be financially literate and at least one member must be a professional or qualified accountant.
Audit committee Report
The group's internal audit function reports directly to the audit committee and is independent of the activities it audits. Reported on a quarterly basis to the audit committee achievement of the audit plan and status of resources for the group's internal audit function.
The remuneration of the GMD and CEO consists of a fixed salary and allowances and a bonus approved by the Board of Directors and linked to the performance of the Group. The group has an internal audit function that is independent of the company's activities and operations.
Directors’ Responsibility statement
The board of directors is responsible for ensuring that the company keeps correct accounts, which at all times reveal with reasonable accuracy the financial position of the group and the company, and which enable them to ensure that the accounts are in accordance with the Companies Act, 1965. Board members have the overall responsibility to take such steps as are reasonably open to them to protect the assets of the Group and the Company to prevent and detect fraud and other irregularities.
Board of Directors
The management considers risk management as an important aspect of the Group's diversified and growing operations with the aim of maintaining a good system of internal controls. The internal audit function ensures the effectiveness of the internal control system in the group.
Directors’ Report
The board of directors is pleased to present their report and the audited accounts for the group and the company for the financial year ended 31 December 2013. Further information on the significant and subsequent events is given in note 44 to the accounts.
The Directors of the Company are responsible for the preparation of financial statements so as to give a true and fair view in accordance with Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia. In our opinion, the financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 December 2013 and of their financial performance and cash flows for the year then ended in accordance with Financial Reporting Standards and the requirements of the Companies Act, 1965 in Malaysia.
The board of directors is responsible for the preparation of the supplementary information in accordance with guidance on special issue no. This report is made solely for the members of the company, as a body, in accordance with section 174 of the Companies Act, 1965 of Malaysia and for no other purpose .
Financial statements of subsidiaries are prepared for the same reporting period as the company using uniform accounting policies. Control is achieved when the group is exposed to variable returns or has rights to variable returns from an association with an investee and has the ability to influence those returns through its power over the investee.
Accounting Policies
GeneRAl inFORMAtiOn
The company's other main activities include providing management services to subsidiaries and property investment. The Company is a limited liability company, incorporated in Malaysia in 1960, and listed on the main market of Bursa Malaysia Securities Berhad.
Information on the Group's investments in subsidiaries, associates and joint ventures is presented on pages 214 to 220 of this annual report. The company is a subsidiary of Lembaga Tabung Angkatan Tentera, a local statutory body established under the Tabung Angkatan Tentera Act 1973.
The adoption of IAS 10 Consolidated Financial Statements and IAS 11 Joint Arrangements requires the restatement of previous financial statements, while the application of IAS 12 Disclosure of Interests in Other Entities has resulted in additional disclosures in the consolidated financial statements. The adoption of other new or amended standards did not affect the financial performance or position of the group and the company.
- cHAnGes in AccOUntinG POlicies (cOnt’D.) FRs 11 Jointly controlled entities
Following the retrospective application of FRS 11, the carrying amount of the Group's investment in Boustead Ikano Sdn Bhd totaling RM20 million which was previously classified as an investment in associate has been restated as an investment in joint venture. The change has no other impact on the Group's consolidated financial position or performance.
Disclosures on interests in Other entities
Under FRS 11, investment in joint arrangements is classified as either joint operation or joint venture depending on the contractual rights and obligations of each investor. Instead, jointly controlled entities that meet the definition of a joint venture must be accounted for using the equity method.
Fair value Measurement
- stAnDARDs issUeD BUt nOt yet eFFective
- stAnDARDs issUeD BUt nOt yet eFFective (cOnt’D.)
- RevenUe
- OPeRAtinG cOst
- OPeRAtinG cOst (cOnt’D.)
- inteRest incOMe
- FinAnce cOst
- incOMe tAx exPense
- incOMe tAx exPense (cOnt’D.)
- eARninGs PeR sHARe
- DiviDenDs
- investMent PROPeRties
- DevelOPMent PROPeRties
- PRePAiD lAnD leAse PAyMents
- lOnG teRM PRePAyMents
- PRePAiD lAnD leAse PAyMents (cOnt’D.)
- sUBsiDiARies
- sUBsiDiARies (cOnt’D.)
- AssOciAtes
- JOint ventURes
- investMents
- intAnGiBle Assets
- intAnGiBle Assets (cOnt’D.)
- inventORies
- PROPeRty DevelOPMent in PROGRess
- DUe FROM/(tO) cUstOMeRs On cOntRActs
- ReceivABles
- ReceivABles (cOnt’D.)
- ReceivABles (cOnt’D.) Receivables that are impaired
- DePOsits, cAsH AnD BAnk BAlAnces
- DisPOsAl GROUP HelD FOR sAle
- sHARe cAPitAl
- PeRPetUAl sUkUk
- ReseRves
- BORROwinGs
- BORROwinGs (cOnt’D.)
- PAyABles
- cOntinGent liABilities
- cOntinGent liABilities (cOnt’D.)
The accounting value of the group's loans and receivables at the balance sheet date is disclosed in note 28. The group regards Affin Holdings Berhad (Affin) as a significant associated company. Affin's summary financial information is provided below. This represents the amounts in Affin's accounts and not the group's share of these amounts. a) summary statement of total income.
December 2013 Fixed rate
OBJECTIVES AND POLICIES OF FINANCIAL RISK MANAGEMENT (continued) interest rate risk (continued) interest rate risk (continued).
December 2012 Fixed rate
Other financial instruments of the Group and the Company that are not included in the tables above are not subject to interest rate risk, except as discussed below. The assumed movement in basis points for interest rate sensitivity analysis is based on a careful assessment of the current market environment.
