FimaCorp's 100% subsidiary, Percetakan Keselamatan Nasional Sdn Bhd (“PKN”) has taken over the full ownership, control and management of Cawangan Percetakan Keselamatan, the security printing arm of the Malaysian government, pursuant to the Privatization Agreement entered into between the Malaysian government, Fima Corporation Berhad (“FimaCorp”) (then known as Fima Metal Box Berhad). FimaCorp's 100% subsidiary, Percetakan Keselamatan Nasional Sdn Bhd (“PKN”) has taken over the entire ownership, control and management of Cawangan Percetakan Keselamatan, the security printing arm of the Malaysian government, pursuant to the Privatization Agreement entered into in between.
ANNUAL GENERAL
50 th AGM”)
We are KFIMA
From the Leadership
Performance Review
Contents
Financial Statements
Corporate Governance
Other
Information
Honouring the Past,
Positioning for the Future
ABOUT
THIS REPORT
GROUP
STRATEGIC REVIEW
Environmental
Social
Governance
Environment Technology Disruption
In driving our strategies, we seek to create long-term value for all our
HOW WE
CREATE VALUE
Investments in the development and maintenance of property, plant, facilities and equipment have provided us with the capacity to generate long-term returns. Providing a safe work environment, supporting local employment, fair labor practices and investing in training are critical to maintaining positive employee relations.
Protection
Investment
Acquisitions, Divestments, Joint Ventures and Projects
Socio-Political Climate Risk
HOW WE CREATE VALUE
Investments in CSR activities and welfare contributions will have a long-term impact on all capitals. We have maintained our competitive position through enhanced niche solutions and an evolving product portfolio, benefiting financial, industrial and social and relationship capitals.
FIVE-YEAR GROUP
FINANCIAL HIGHLIGHTS
CORPORATE STRUCTURE
KUMPULAN FIMA BERHAD
RM163.90 million +77.6% Y-o-Y
RM245.50 million +54.9% Y-o-Y
RM108.75 million +364.3% Y-o-Y
CHAIRMAN’S STATEMENT
Dear
Shareholders,
In Pursuit of Purpose
REVENUE
The interim dividend payout represents 40.4% of the Group’s
We have also begun to incorporate the recommendations of the Working Group on Climate-Related Financial Disclosure to improve our disclosure of climate-related risks and opportunities. Above all, we will continue to be part of the social and economic transformation agenda and create opportunities that can benefit the entire society and contribute to the building of the country.
MANAGEMENT DISCUSSION
The portfolio of companies in the FIMA basket has never been stronger
The market is there for the taking, so we have to ensure we continually
Additionally, increasing health awareness is anticipated to drive the growth of the tuna market. An increase in the spending capacity of customers with increasing disposable income will further contribute towards the revenue of the liquid bulk terminals market.
Plantation Division
Sustaining Growth
RM245.50 million
RM108.75 million
SEGMENTAL REVIEW
In the case of the first, a 400-hectare newly reclaimed area in Kuala Betis, Kelantan produced 2,128 tonnes of FFB in FYE2022. However, development on the property was delayed due to labor shortages and heavy rainfall hampering progress.
How we create value
We retain our social license to operate, which will benefit financial and social and relationship capitals over the long term. Investment expenditure on compliance costs and high yielding planting material will affect Financial Capital in the short term but will support profitability in the long term.
Bulking
Biodiesel
Building Capacity To Maximise Value
RM163.90 million
RM56.26 million
Bulking Division
Customer-centric operating model supports financial, manufactured and social and relationship capitals over the long term. Investment expenditure on compliance costs will affect Financial Capital in the short term, but support financial performance in the long term.
Food Division
Manufacture & distribution of canned fish and frozen loins
Food packaging
RM165.72 million
RM20.72 million
Enhancing Our Value Chain
New products in the non-fish product category, which were launched in recent years, also contributed to revenue growth. Similarly, demand for frozen tuna loins in EU markets remained strong in the year under review, with sales up 19.9% year-on-year, driven by 15.5% growth.
Mackerel Nutrition Facts
Short-term impact on Financial Capital arising from regulatory and compliance costs, investments in training and new recruitment. Compliance costs and R&D will affect Financial Capital in the short term, but support financial performance in the long term.
Manufacturing Division
RM104.13 million
RM8.49 million
Staying Agile
Savings in energy costs through the use of renewable energy will have a long-term positive impact on financial capital. Nurturing our talent pool through ongoing investment in training will support financial and intellectual capital in long-term leveraged capital.
SUSTAINABILITY REPORT
Our Approach to Sustainability
Implementation and maintenance of supply chain transparency and constant compliance with international standards (MSPO, ISO, BSCI). Using energy and other natural resources in the most efficient way with as little loss or waste as possible.
Contributing To The United Nations Sustainable Development Goals
Having water and waste management policies and procedures in place and ensuring they are adhered to. Efficient use of energy and other natural resources with as little loss or waste as possible.
Task Force on Climate-Related Financial Disclosures
Progress made in FYE2022
ENVIRONMENTAL
Sustainable agricultural practices In our efforts to preserve biodiversity, we focus primarily on areas that are most exposed as a result of our operations. In our Plantation division, we preserve biodiversity by establishing protected buffer zones along riverbanks to act as passageways for wild animals through our oil palm properties.
Our protected areas Group-wide total 779
This entails, among other things, constant monitoring and understanding of the local ecology in the affected areas. In the current financial year, another machine, known as 'Big Bull', will be deployed in Ladang Amgreen, Sarawak.
Spotlight Story
What We Have Done
Transport diesel intensity of Malaysian and Indonesian plantations per tonnes of FFB produced in FYE2022 Diesel consumption (L). In FYE2022, the Bulking division consumed the most electricity and had recorded a 30.7% increase in its electricity consumption due to increased product handling, which required the use of pumps with longer operating hours to handle the higher throughput.
Plantation
Our consumption of electricity has been gradually reduced over the years due to effective utilization of solar generated electricity and other factors related to the nature of our business operations. In the long term, using solar PV will be beneficial, reliable and long-lasting, ensuring we have a constant supply of clean and renewable energy while reducing our carbon footprint across our operations.
We included Scope 3 emissions from our plantation activities for
However, this increase was offset by a reduction in water use by the tuna operation, largely due to the installation of a new washing station that had improved the operation's water use efficiency, despite the increase in the volume of tuna processed. In FY 2022, total suspended solids (“TSS”) from the estate's water and wastewater samples, which were collected from 9 locations as the estate entered Phase 2, were all within the DOE requirement of 50 mg/liter.
SOCIAL
We ensure that we fully comply with both international and local labor standards to protect human rights and ensure no human trafficking. Going forward, we will continue to ensure that we protect our employees by addressing human rights through implementing best practices and participating in industry networks to further improve this aspect.
Zero reported cases of breach of human and workers’ rights
We strive to ensure that the rights of all those in our employment are respected and do not accept any form of slavery, modern slavery or child labor in our operations. We constantly strive to ensure that we do not engage in any form of unlawful discrimination in our recruitment and employment of guest workers and ensure that their legal rights are fully respected.
All our Malaysian estates are Malaysian
We ensure that prior to the employment of our guest workers, the basic terms of employment are given and explained clearly to them in their native language. Broader issues facing our industries. A collective and concerted effort is required from all our stakeholders to ensure that human rights issues are respected.
We employ guest workers from Indonesia, India, Nepal and Bangladesh, and they make up 10.6% of the Plantation Division's total workforce. Our guest workers are also provided with comfortable living quarters with complete basic amenities, including recreation areas and internet connection.
72.8% of our plantation workers in Malaysia are locals
The majority of our employees are from the 30- to 50-year-old age group, which constitutes 58.3% of the total headcount in the Group. Employees from the Food and Plantation divisions make up 31.5% and 51.0% of the Group's total headcount respectively.
In FYE2022, our local employment rate was 93.7%
3,600 Over of total accumulative hours
Our employees receive an annual performance review that acts as an effective communication platform for gathering feedback, sharing ideas, identifying areas for improvement and identifying individual training or development needs. Each employee receives a set of annual key performance indicators, which, together with annual performance and contribution, determine their annual raise, reward and/or promotion.
PERFORMANCE MANAGEMENT SYSTEM
The health and safety of our employees is managed by each business division's health and safety committee, made up of management and employee representatives, in accordance with local regulatory requirements. These committees oversee the health and safety management of their staff, including the management, investigation and resolution of reported incidents.
GOVERNANCE
For the Group's risk management, please refer to the section Statement on risk management and internal control on page 118. Group Internal Audit verifies the effectiveness of the Group's sustainability programs and reporting, with particular attention to compliance and data validity.
In FYE2022, we had no major IT security
During the year under review, we maintained our licenses and permits necessary to operate in accordance with government agency requirements. IFC is one of the recognized dolphin-safe tuna processing and fishing companies listed by the International Marine Mammal Project.
OUR BOARD OF DIRECTORS
Dato’ Idris bin Kechot
Dato’ Roslan bin Hamir
BOARD OF DIRECTORS OUR
Dato’ Rosman bin Abdullah
Rozana Zeti binti Basir
Datuk Anuar bin Ahmad
Danny Hoe Kam Thong
Datin Rozilawati binti Haji Basir
OUR SENIOR MANAGEMENT
Dzakwan bin Mansori
Fadzil bin Azaha
SENIOR MANAGEMENT OUR
Irman bin Abdul Shukor
Jasmin binti Hood
Ali bin Khamis
Ahmad Faisal bin Hamdan
Mohd Radzif bin Md Sharif
Mohd Fahmy bin Mahmud
Hamka bin Usman
CORPORATE GOVERNANCE OVERVIEW STATEMENT
Doing Well by Doing Good
- BOARD RESPONSIBILITIES
- COMPOSITION OF THE BOARD
- REMUNERATION
- RISK MANAGEMENT AND INTERNAL CONTROL FRAMEWORK
- CONDUCT OF GENERAL MEETINGS
Azizan bin Mohd Noor retired from the Board at the conclusion of the Company's 49th AGM held on 21 September 2021. The Company Secretaries report directly to the Board, through the Chairman, on all matters relating to the proper functioning of the Board.
AUDIT AND
RISK COMMITTEE REPORT
AUDIT AND RISK COMMITTEE REPORT
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
Risk management is considered an integral part of the Group's management process. AAPG3 does not require external auditors to form an opinion on the adequacy and effectiveness of the Group's risk management and internal control system.
ADDITIONAL DISCLOSURE
Roshayati and Rozana Zeti are major shareholders of KFima. iii) Ahmad Riza is the son of Puan Sri Datin Hamidah binti Abdul Rahman and brother of Roshayati, Datin Rozilawati and Rozana Zeti and:. Deemed interested by virtue of her shareholding of preference shares in BHR which carries veto power in all the decisions in BHR.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RELATION TO THE AUDITED FINANCIAL STATEMENTS
FINANCIAL STATEMENTS
DIRECTORS’
REPORT
Expenses incurred for indemnities provided or insurance taken out for a director and officer of the Group and of the Company during the financial year amounted to RM44,500. BHR is a corporate shareholder in the company; ii) Their mother, Puan Sri Datin Hamidah binti Abdul Rahman's shareholding in the Company and her shareholding in preference shares in BHR;
STATEMENT BY DIRECTORS
STATUTORY DECLARATION
INDEPENDENT AUDITORS’ REPORT
The other information consists of the directors' report and the annual report, but does not include the financial statements of the Group and the Company and our auditor's report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon.
STATEMENTS OF COMPREHENSIVE INCOME
STATEMENTS OF FINANCIAL POSITION
STATEMENTS OF CHANGES IN EQUITY
Capital reserve RM'000 Foreign currency translation deficit RM'000 Capital reserve arising from bonus issue in subsidiary RM'000. The accompanying accounting policies and explanatory notes form an integral part of the financial statements.
STATEMENTS OF CASH FLOWS
NOTES TO THE
Corporate information
Significant accounting policies 1 Basis of preparation
- Changes in accounting policies arising from adoption of new MFRSs, amendments to MFRSs and IC Interpretations
NOTES TO THE 155 FINANCIAL STATEMENTS
Significant accounting policies (cont’d.) 3 Standards issued but not yet effective
- Summary of significant accounting policies (a) Basis of consolidation
156 NOTES TO THE
Significant accounting policies (cont’d.)
- Summary of significant accounting policies (cont’d.) (a) Basis of consolidation (cont’d.)
NOTES TO THE 157 FINANCIAL STATEMENTS
Summary of significant accounting policies (cont’d.) (c) Transactions with non-controlling interests
158 NOTES TO THE
Summary of significant accounting policies (cont’d.) (e) Property, plant and equipment
NOTES TO THE 159 FINANCIAL STATEMENTS
Summary of significant accounting policies (cont’d.) (f) Biological assets
160 NOTES TO THE
Summary of significant accounting policies (cont’d.) (i) Impairment of non-financial assets (cont’d.)
NOTES TO THE 161 FINANCIAL STATEMENTS
Summary of significant accounting policies (cont’d.) (j) Financial assets (cont’d.)
162 NOTES TO THE
NOTES TO THE 163 FINANCIAL STATEMENTS
Summary of significant accounting policies (cont’d.) (k) Impairment of financial assets
164 NOTES TO THE
Summary of significant accounting policies (cont’d.) (n) Financial liabilities (cont’d.)
NOTES TO THE 165 FINANCIAL STATEMENTS
Summary of significant accounting policies (cont’d.) (q) Revenue recognition
166 NOTES TO THE
Summary of significant accounting policies (cont’d.) (r) Segment reporting
NOTES TO THE 167 FINANCIAL STATEMENTS
Summary of significant accounting policies (cont’d.) (t) Employee benefits
168 NOTES TO THE
Summary of significant accounting policies (cont’d.) (u) Leases (cont’d.)
NOTES TO THE 169 FINANCIAL STATEMENTS
Summary of significant accounting policies (cont’d.) (v) Income taxes (cont’d.)
170 NOTES TO THE
Summary of significant accounting policies (cont’d.) (w) Fair value measurement
NOTES TO THE 171 FINANCIAL STATEMENTS
Significant accounting judgements and estimates
172 NOTES TO THE
Revenue from contracts with customers
NOTES TO THE 173 FINANCIAL STATEMENTS
Cost of sales/services
Other income
Staff costs
174 NOTES TO THE
Directors’ remuneration
Net charge of impairment loss and expected credit losses (“ECLs”)
NOTES TO THE 175 FINANCIAL STATEMENTS
Finance costs
Profit before tax and zakat
176 NOTES TO THE
Income tax expense
NOTES TO THE 177 FINANCIAL STATEMENTS
Earnings per share (a) Basic
178 NOTES TO THE
Dividends
NOTES TO THE 179 FINANCIAL STATEMENTS
Property, plant and equipment Group
180 NOTES TO THE
Property, plant and equipment (cont’d.) Group
NOTES TO THE 181 FINANCIAL STATEMENTS
182 NOTES TO THE
NOTES TO THE 183 FINANCIAL STATEMENTS
184 NOTES TO THE
NOTES TO THE 185 FINANCIAL STATEMENTS
Property, plant and equipment (cont’d.) Company
March 2021
186 NOTES TO THE
Property, plant and equipment (cont’d.)
Right-of-use assets As lessee
NOTES TO THE 187 FINANCIAL STATEMENTS
Right-of-use assets (cont’d.) As lessee (cont’d.)
188 NOTES TO THE
Investment properties Group
NOTES TO THE 189 FINANCIAL STATEMENTS
Investment properties (cont’d.) Group (cont’d.)
