In the meantime, the Group will continue to strictly adhere to the applicable SOPs. Our employees are the life force that sustains the company, as they are the key element in the implementation of the Group's business strategies.
CORPORATE STRuCTuRE
HeveaBoard Berhad
Incorporated in Malaysia [Registration No. 199301020774
CORPORATE INFORMATION
BOARD OF DIRECTORS
She is the daughter of Mr. Tenson Yoong, the alternate director of Mr. Yoong Hau Chun and a substantial shareholder of the Company. In addition, she is also the sister of Mr. Yoong Hau Chun, the Group's managing director and a substantial shareholder of the Company.
PEH Ju CHAI
Bhd., the title Marketing, both for export and domestic, Transportation, Finance and Administration since the inception of Heveapac Sdn. He has many years of marketing and management experience in RTA furniture manufacturing and more than 30 years of experience in international business.
PROFILE OF KEY
SENIOR MANAGEMENT
GANASEN MOORTHI
ELAINE HEW
YOONG LI MIAN
TEE CHIN LuNG
CORPORATE GOVERNANCE OVERVIEW STATEMENT
- Board Composition
- Remuneration
- Risk Management and Internal Control Framework
- Conduct of General Meeting
There is clarity of roles between Board members and roles are defined in the Company's Board Charter. The Board approved the remuneration packages for the year 2021 of the directors and senior management, with the exception of the directors.
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
Review of business performance and division of tasks in the management functions of the group; The management continues to be convinced of the state of risk management and internal controls of the group from the following key processes and information:
STATEMENT ON DIRECTORS’ RESPONSIBILITIES
ADDITIONAL COMPLIANCE INFORMATION
ULTILISATION OF PROCEEDS
LIST OF PROPERTIES
RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE
MATERIAL CONTRACTS
MATERIAL LITIGATION
AUDIT COMMITTEE REPORT
- Financial Reporting
- External Auditors
- Internal Audit
- Review of related party transaction and conflict of interest situation
The Audit Committee also considered accounting developments, requirements and their impact on the financial statements of the Group and the Company. The Audit Committee continues to consider the External Auditors to be suitable in their role as External Auditors of the Group and the Company; and.
Statements Financial
DIRECTORS’
REPORT
Single-tier final dividend of 1.00 sen per ordinary share for the financial year ending December 31, 2019. Single-tier first interim dividend of 0.50 sen per ordinary share for the financial year ending December 31, 2020. During the financial year, no one has been granted options to acquire the unissued shares of the Company.
Details of significant events during and after the end of the financial year are disclosed in note 35 to the financial statements.
STATEMENTS OF
FINANCIAL POSITION
COMPREHENSIVE INCOME
STATEMENTS OF CHANGES IN EQUITY
STATEMENTS OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
CORPORATE INFORMATION
BASIS OF PREPARATION 1 Statement of compliance
- Adoption of amendments/improvements to MFRSs
BASIS OF PREPARATION (CONTINUED)
- New MFRS, and amendments/improvements to MFRSs that have been issued, but yet to be effective (a) The Group and the Company have not adopted the following new MFRS, and amendments/improvements
- New MFRS, and amendments/improvements to MFRSs that have been issued, but yet to be effective (Continued)
The main impact of the amendments is that a full gain or loss is recognized when a transaction involves a business, as defined in MFRS 3. Amendments to MFRS 9 Financial Instruments, MFRS 139 Financial Instruments: Recognition and Measurement, MFRS 7 Financial Instruments : explanatory notes, MFRS 4 Insurance contracts and MFRS 16 Leases. Amendments to MFRS 9 Financial Instruments, MFRS 139 Financial Instruments: Recognition and Measurement, MFRS 7 Financial Instruments: Disclosures, MFRS 4 Insurance Contracts and MFRS 16 Leases (continued).
Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors The amendments revise the definition of accounting estimates to clarify how an entity should distinguish changes in accounting policies from changes in accounting estimates.
BASIS OF PREPARATION (CONTINUED) 4 Functional and presentation currency
- Basis of measurement
- Use of estimates and judgement
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- Basis of consolidation
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 1 Basis of consolidation (Continued)
- Separate financial statements
Investments in participating interests are accounted for in the consolidated financial statements using the equity method. The carrying amount is then adjusted to recognize changes in the group's share of the net assets of the participating interests. Unrealized gains arising from transactions with associates accounted for in equity are eliminated against the investment to the extent of the Group's interest in the investee.
Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3 Translation of foreign currency transactions
- Financial instruments
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4 Financial instruments (Continued)
- Property, plant and equipment (a) Recognition and measurement
The Group and the Company categorize the financial instruments as follows (continued):. i) Financial assets (continued) Debt instruments (continued). The Group and the Company have no financial liability designated as at fair value through profit or loss. The Group and the Company evaluate whether, and to what extent, they have retained the risks and benefits of ownership.
The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the group and the company have retained.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 5 Property, plant and equipment (Continued)
- Leases
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 6 Leases (Continued)
Variable lease payments that do not depend on an index or a rate are not included in the measurement of the lease liability and the right-of-use asset. If an entity in the Group is a lessor in a finance lease, it derecognizes the underlying asset and recognizes a lease receivable at an amount equal to the net investment in the lease. Finance income is recognized in profit or loss based on a pattern that reflects a constant periodic rate of return on the lessor's net investment in the lease.
If an entity within the Group is a lessor in an operating lease, the underlying asset is not removed from the balance sheet, but presented in the statements of financial position based on the nature of the asset.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 7 Goodwill
- Biological asset
- Inventories
- Cash and cash equivalents
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 11 Impairment of assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 11 Impairment of assets (Continued)
The recoverable amount of a CGU asset is its fair value less disposal costs or its value in use, whichever is higher. If the asset's book value exceeds its recoverable amount, the asset's book value is reduced to its recoverable amount. Impairment losses recognized in respect of CGUs or groups of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then to reduce the carrying amount of other assets in the unit or groups of units . on a pro rata basis.
In the latter case, the impairment is recognized in other comprehensive income up to the amount of any previous revaluation.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 12 Share capital
- Employee benefits
- Provisions
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 15 Revenue and other income
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 15 Revenue and other income (Continued)
- Borrowing costs
- Income tax
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 17 Income tax (Continued)
- Operating segments
- Earnings per share
- Fair value measurements
The board of directors or the respective management of the group, which is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the top operating decision maker making strategic decisions. Basic EPS is calculated by dividing the profit or loss attributable to the company's ordinary shareholders by the weighted average number of ordinary shares outstanding in the period, adjusted for own shares. When measuring the fair value of an asset or a liability, the group and the company use observable market data as far as possible.
No transfers took place between levels of the fair value hierarchy during the financial year.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
PROPERTY, PLANT AND EQUIPMENT (CONTINUED) (i) Buildings in relation to the leasehold land
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (a) Right of use assets
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONTINUED) (a) Right of use assets (Continued)
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONTINUED) (b) Lease liabilities
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONTINUED) (b) Lease liabilities (Continued)
INVESTMENT IN SUBSIDIARIES
INVESTMENT IN SUBSIDIARIES (CONTINUED) The details of the subsidiaries are as follows
INVESTMENT IN ASSOCIATE
INVESTMENT IN ASSOCIATE (CONTINUED) Details of associate are as follows
GOODWILL ON CONSOLIDATION
DEFERRED TAX ASSETS/(LIABILITIES) Presented after appropriate offsetting as follows
DEFERRED TAX ASSETS/(LIABILITIES) (CONTINUED) (iii) Unrecognised deferred tax assets
INVENTORIES
BIOLOGICAL ASSET
BIOLOGICAL ASSET (CONTINUED)
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES (CONTINUED)
OTHER INVESTMENTS
CASH AND SHORT-TERM DEPOSITS
SHARE CAPITAL
TREASURY SHARES
OTHER RESERVES
RETAINED EARNINGS
PROVISION FOR RETIREMENT BENEFITS
LOANS AND BORROWINGS
TRADE AND OTHER PAYABLES
REVENUE
FINANCE COSTS
PROFIT BEFORE TAX
PROFIT BEFORE TAX (CONTINUED)
INCOME TAX EXPENSE
EARNINGS PER SHARE
DIVIDENDS
RELATED PARTIES
RELATED PARTIES (CONTINUED)
DIRECTORS’ REMUNERATION
CAPITAL COMMITMENT
SEGMENT INFORMATION
SEGMENT INFORMATION (CONTINUED) Segment liabilities
SEGMENT INFORMATION (CONTINUED)
SEGMENT INFORMATION (CONTINUED) Geographical information
FINANCIAL INSTRUMENTS
December 2020 Financial assets
- FINANCIAL INSTRUMENTS (CONTINUED)
The following table analyzes the financial instruments in the statements of financial position according to the classes of financial instruments to which they are assigned.
December 2019 Financial assets
- FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management
- FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (Continued)
The operations of the group and the company are exposed to various financial risks arising from operations and the use of financial instruments. The overall objective of group and company financial risk management is to optimize value for their shareholders. Credit risk is the risk of financial loss for the Group and the Company, which may arise due to outstanding financial instruments if the counterparty does not fulfill its obligations.
The group's and the company's exposure to credit risk stems primarily from business and other receivables.
December 2020
FINANCIAL INSTRUMENTS (CONTINUED)(b) Financial risk management (continued) (b) Financial risk management (continued). i) Credit risk (continued) Trade receivables (continued).
December 2019
The group and the company assess that other receivables and financial assets have a low credit risk. For other accounting policies of the group and the company regarding the impairment of financial assets, see note 3.11(a). The group's and the company's exposure to liquidity risk stems primarily from mismatches in the maturities of financial assets and liabilities.
The group's and the company's exposure to liquidity risk stems primarily from business and other liabilities, loans and borrowings.
Interest rate risk is the risk that the fair value or future cash flow of financial instruments of the Group and the Company will fluctuate due to changes in market interest rates. The group's and the company's exposure to interest rate risk stems primarily from their short-term deposits with authorized banks, rent liabilities (insured) and loans and advances. The interest rate profile of significant interest-bearing financial instruments of the Group and the Company based on book values in the reporting period is as follows.
FINANCIAL INSTRUMENTS (CONTINUED)(b) Financial Risk Management (continued) (b) Financial Risk Management (continued). iv) Interest rate risk (continued).
December 2020 Financial liability
The book values of cash and cash equivalents, short-term receivables and payables and short-term loans reasonably approximate their fair values due to the relatively short-term nature of these financial instruments. As of December 31, 2020, the fair value of other investments, as disclosed in note 14 to the financial statements, is measured at level 1, which is determined directly based on prices provided by investment banks. There were no transfers between Level 1 and Level 2 during the financial year (no transfer in both directions).
The following table shows the hierarchy of fair value measurement of the Group's financial instruments. Fair value of financial instruments not stated at fair value.
December 2019 Financial liability
- CAPITAL MANAGEMENT
- SIGNIFICANT EVENTS DURING AND SUBSEQUENT TO THE END OF THE FINANCIAL YEAR COVID-19 pandemic
The Group and the Company manage their capital structure and make adjustments to it in light of changes in economic conditions. There have been no changes in the group's and the company's approach to capital management in the financial year. The emergence of the COVID-19 outbreak since the beginning of 2020 has caused significant economic uncertainty in Malaysia and the markets in which the Group and the Company operate.
The group and the company will constantly monitor all significant changes in future economic conditions that will affect the group and the company.
STATEMENT BY DIRECTORS
STATUTORY DECLARATION
INDEPENDENT AUDITORS’
The other information includes the information included in the annual report, but does not include the annual accounts of the Group and the Company and our auditor's report thereon. Our opinion on the financial statements of the Group and the Company does not relate to the other information and we do not formulate any certainty conclusions about this. Our objectives are to obtain reasonable assurance as to whether the financial statements of the Group and of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion .
If we determine that a material uncertainty exists, we must draw attention in our auditor's report to the related disclosures in the financial statements of the Group and the Company or, if such disclosures are inadequate, change our opinion.
LIST OF
PROPERTIES
ANALYSIS OF SHAREHOLDINGS
- SHARE CAPITAL
- DISTRIBUTION OF SHAREHOLDINGS
- SUBSTANTIAL SHAREHOLDERS
- DIRECTORS’ SHAREHOLDINGS
- LIST OF THIRTY (30) LARGEST SHAREHOLDERS
Considered interested due to its substantial shareholding in HeveaWood Industries Sdn. share ownership through Firma Holdings Sdn. Bhd.) in accordance with Section 8 of the Act; and deemed to be interested by virtue of HeveaWood Industries Sdn. Considered interested under Article 8 of the Act [shareholding held through Tenson Holdings Sdn.
Bhd.)]; and by virtue of his family relationship with Tan Ya Ling, his wife, Yoong Tein Seng @ Yong Kian Seng, his father and Yoong Li Yen, his sister; and deemed to be interested by virtue of HeveaWood Industries Sdn. are entitled to control the exercise of 100 percent of the votes attached to the voting shares in Gemas Ria Sdn.
- REMOTE PARTICIPATION AND VOTING
- PROXY
- POLL VOTING
- GENERAL MEETING RECORD OF DEPOSITORS
- EXPLANATORY NOTES ON ORDINARY/SPECIAL BUSINESS
- STATEMENT ACCOMPANYING NOTICE OF ANNUAL GENERAL MEETING Details of individual who is standing for election as Director
A proxy appointed to attend and vote at a meeting of the Society shall have the same rights as a member to speak at the meeting. ii). This authority, unless revoked or varied at a general meeting, will terminate at the conclusion of the next AGM of the Company. No individual is seeking to be elected as a Director at the Twenty Seventh (27th) General Meeting of the Company.
A proxy appointed to attend and vote at a meeting of the Company has the same rights as the member to speak at the meeting.
ANNUAL REPORT
