-Independent Non-Executive Director Dato’ Ab Rahim bin Abu Bakar Senior Independent Non-Executive Director. Served Kumpulan FIMA Berhad in various capacities as Vice President of Agro-based Group and Business Development and as Executive Director and Chief Executive Officer, Percetakan Keselamatan Nasional and Security Printers, FIMA Berhad.
BOARD
COMMITTEES
BOARD AUDIT COMMITTEE APPOINTED WITH EFFECT FROM (W.E.F.)
BOARD NOMINATION COMMITTEE
BOARD REMUNERATION COMMITTEE
BOARD RISK MANAGEMENT COMMITTEE
BOARD EMPLOYEE SHARE OPTION SCHEME COMMITTEE
DR. BADRULHISHAM BIN MOHD GHAZALI
PROFILE OF SENIOR MANAGEMENT
AHMED FAIRUZ BIN ABDUL AZIZ
MOHAMAD MAZRI BIN ZAINAL ABIDIN
AZMAN BIN ABDULLAH
5-YEAR GROUP FINANCIAL HIGHLIGHTS
PROFIT/(LOSS) FOR THE YEAR (RM’000)
BASIC EARNINGS PER SHARE (SEN)
REVENUE (RM’000)*
NET ASSETS PER SHARE (RM)
ECONOMIC VALUE FOR SHAREHOLDERS
THE GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT AND
MANAGEMENT DISCUSSION &
ANALYSIS
Dear Valued Shareholder,
TIMES
THE GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT AND MANAGEMENT DISCUSSION & ANALYSIS
FY2019 REVENUE (RM’000)
FY2018 VS FY2019 REVENUE* (RM’000)
Our LPG division is the largest contributor to the Group's revenues and profits and comprises the importation, bottling, marketing and distribution of Liquefied Petroleum Gas ('LPG') under the brand name Solar Gas, through our wholly owned subsidiary in owned by Solar Gas Sdn Bhd (formerly known as KUB Gas Sdn Bhd). STATEMENT OF THE CHIEF EXECUTIVE AND MANAGEMENT DISCUSSIONS & ANALYSIS MANAGEMENT DISCUSSIONS & ANALYSIS.
FY2018 VS FY2019 PAT/(LAT) (RM’000)
This was mainly due to the significant drop in the average LPG contract price ('CP') compared to FY2018. Looking forward, our capital expenditure plans will focus on improving facilities and equipment at our properties to ensure sustainable revenue generation in the medium to long term.
THE GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT AND MANAGEMENT DISCUSSION & ANALYSIS
To further expand our presence in the LPG market, we will also consider initiatives that will increase our storage capacity. Due to these delays in the implementation of the NFCP, the ICT department's revenue in FY2019 was largely based on maintenance contracts related to projects carried out in previous years.
SUSTAINABILITY STATEMENT 2019
BOUNDARY AND SCOPE
Economic
The ability to reduce the risk of corruption is a key determinant of a truly sustainable business, and through its anti-corruption policy the Group continues to address an issue of major importance to stakeholders. In addition, appropriate internal controls are in place to ensure that corporate governance standards and business integrity are maintained at all times.
Environment
Furthermore, in 2019, the plantations within the Group obtained the MSPO certification, which is mandatory for oil palm producers. The MSPO certifies that the Group's estates have consistently maintained high standards in estate operating procedures.
Social
In the future, the Group will continue to actively review new training courses related to scope of work. Among the facilities invested within the Group's plantation estates during the year are staff quarters, surau, grocery stores, day care centers and recreational facilities.
CORPORATE GOVERNANCE
OVERVIEW STATEMENT
CORPORATE GOVERNANCE OVERVIEW STATEMENT
The BAC Chair is not the chairperson of the committee to ensure objectivity in the committee's findings and recommendations. This statement is made in accordance with the resolution of the Board of Directors dated March 26, 2020.
ADDITIONAL COMPLIANCE
INFORMATION
STATEMENT ON RISK MANAGEMENT AND
INTERNAL CONTROL
INTRODUCTION
RESPONSIBILITY AND ACCOUNTABILITY
RISK MANAGEMENT
The system is guided by an established enterprise risk management framework (the 'framework') which has adopted the principles and process described in MS ISO Risk Management - Principles and Guidelines (the 'principle'). The principle is broad, but appropriately adopted for risk management and internal control practices in the group.
KEY INTERNAL CONTROL ACTIVITIES
The Code of Ethics and Conduct ('Code') is communicated to all employees to reinforce the Group's core value of integrity by providing guidance on the moral and ethical behavior expected of all employees. The internal audit function assesses the internal control system, risk management and governance process of the Group.
CONCLUSION
By incorporating sustainability aspects into the process, it will lead to long-term value creation, as the organization looks beyond short-term profitability and considers the medium- to long-term viability of the business. It also serves as a business strategy that advocates long-term value creation for companies, supports business continuity and creates a long-term competitive advantage.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
The Board of Directors approved the sustainability policy and framework as a guide to ensure standardization for implementation across the Group. Sustainability reporting and strategy is led by the Sustainability Committee, which reports to the BRMC.
BOARD AUDIT
COMMITTEE REPORT
COMPOSITION
MEETINGS
Financial Results and Corporate Governance
Significant matters highlighted, including financial reporting issues, significant judgments made by management, significant and unusual events or transactions, and how these matters were addressed; and. The review is to ensure that the audited financial statements have been prepared in accordance with the provisions of the Companies Act 2016 and the Financial Reporting Standards issued by MASB;.
External Audit
Internal Audit
SUMMARY OF WORKS OF THE INTERNAL AUDIT FUNCTION
The board of directors is responsible for the annual accounts giving a true and fair view of the situation for KUB Group and KUB at the end of the financial year, as well as of KUB Group and KUB's and KUB's results and cash flows for the financial year. . The board is responsible for ensuring that KUB Group and KUB keep accounts that disclose KUB Group's and KUB's financial position and results with reasonable accuracy, so that they can ensure that the annual accounts are in accordance with the Companies Act, 2016.
STATEMENT OF DIRECTORS’ RESPONSIBILITY FOR THE
Under the Companies Act 2016, directors are required to prepare financial statements for each financial year which have been prepared in accordance with the applicable accounting standards and requirements of the Companies Act 2016 in Malaysia. The Directors are responsible for ensuring that KUB Group and KUB keep accounting records which disclose the financial position and performance of KUB Group and KUB with reasonable accuracy, enabling them to ensure that the financial.
AUDITED FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTSFINANCIAL
STATEMENTS
REPORT OF THE DIRECTORS
At the end of the financial year, there were no unissued option shares of the company. The auditor's fees of the Group and the Company for the financial year that ended on 31 December 2019 are disclosed in note 10 of the financial statements.
INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OF KUB MALAYSIA BERHAD (Incorporated in Malaysia)
There are no key audit matters to report in connection with the audit of the Company's financial statements. Other information comprises the information included in the annual report but does not include the group and company financial statements and our auditor's report thereon.
STATEMENTS OF PROFIT OR LOSS
STATEMENTS OF COMPREHENSIVE INCOME
STATEMENTS OF FINANCIAL POSITION
AS OF 31 DECEMBER 2019
STATEMENTS OF CHANGES IN EQUITY
STATEMENTS OF CASH FLOWS
GENERAL INFORMATION
The Company's main activities are holding investments and providing management services to its subsidiaries. There were no significant changes in the nature of these core activities during the financial year.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1 Basis of Preparation of the Financial Statements
The registered office and principal place of business of the Company is at Level 3A, Unit 1, Capital 3, Oasis Square, Ara Damansara, PJU 1A/7A, 47301 Petaling Jaya, Selangor Darul Ehsan. The financial statements were approved for publication in accordance with the decision of the board of directors on April 30, 2020.
NOTES TO THE FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 1 Basis of Preparation of the Financial Statements (cont’d)
The standards and interpretations issued but not yet in force up to the date of publication of the annual accounts of the Group and the Company are listed below. The initial application of the above accounting standards, interpretations or amendments is not expected to have a material financial impact on the financial results of the Group and the Company.
SIGNIFICANT ACCOUNTING POLICIES 1 Basis of Accounting
- Basis of Consolidation
SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 2 Basis of Consolidation (cont’d)
SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 2 Basis of Consolidation (cont’d)
- Revenue
SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 3 Revenue (cont’d)
- Employee benefits (a) Short-term benefits
- Zakat
- Income taxes (a) Current tax
The Group participates in national pension schemes as defined by the laws of the countries in which it operates. Current period zakat is recognized when the Group has a current zakat obligation as a result of a zakat assessment.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 7 Transactions with non-controlling interests
- Subsidiaries
- Investments in associates
- Foreign currency
SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 11 Property, plant and equipment
- Investment properties
- Biological assets
- Impairment of non-financial assets
- Financial instruments
SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 15 Financial instruments (cont’d)
SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 15 Financial instruments (cont’d)
- Contract assets and contract liabilities
- Inventories
- Provisions
- Grants
The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another company. If the group retains substantially all the risks and rewards of ownership of a transferred financial asset, the group continues to recognize the financial asset.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 19 Grants (cont’d)
- Borrowing costs
- Leases
SIGNIFICANT ACCOUNTING POLICIES (CONT'D) 21 Leases (cont’d)
SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 21 Leases (cont’d)
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
- Non-current assets (or disposal groups) held for sale and discontinued operation
- Derivative financial instruments
- Share capital
- Segment reporting
- Contingencies
SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 27 Statements of Cash Flows
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
- Judgements made in applying accounting policies
- Key sources of estimation uncertainty
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D) 2 Key sources of estimation uncertainty (cont’d)
SIGNIFICANT ESTIMATES AND JUDGMENTS (CONT'D)4.2 Key Sources of Estimation Uncertainty (Continued) 4.2 Key Sources of Estimation Uncertainty (continued). e) Estimation uncertainty relating to rental agreements. The Group also takes into account changes in financial conditions since the last rates offered by financial institutions.
REVENUE
At the commencement of the lease, the Group assesses, by applying significant assumptions, whether it is reasonably safe to exercise the extension options. The Group also used the assumptions when determining the incremental debtor rate for its lease contracts, the Group makes adjustments to the existing rates received from financial institutions taking into account the lease term and leased assets.
REVENUE (CONT’D)
COST OF SALES
FINANCE INCOME
FINANCE COSTS
PROFIT BEFORE ZAKAT AND TAXATION
PROFIT BEFORE ZAKAT AND TAXATION (CONT’D)
PROFIT BEFORE ZAKAT AND TAXATION (CONT’D) (a) Employee Benefits Expenses
AUDITOR’S REMUNERATION
DIRECTORS’ REMUNERATION
TAXATION
TAXATION (CONT'D)
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE Discontinued Operations
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE (CONT’D) Discontinued Operations (cont’d)
DISCONTINUED OPERATIONS AND NON-OPERATING ASSETS HELD FOR SALE (CONTINUED) Discontinued Operations (continued) Discontinued Operations (continued).
DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE (CONT’D)
EARNINGS PER ORDINARY SHARE
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
PROPERTY, PLANT AND EQUIPMENT (CONT’D) Assets pledged as security
INVESTMENT PROPERTIES
INVESTMENT PROPERTIES (CONT’D)
INVESTMENT PROPERTIES (CONT’D) Valuation of investment properties
The extension options held can only be exercised by the Group and not by the lessors. The Group assesses at the commencement date of the lease whether it is reasonably certain that the extension options will be exercised.
INVESTMENTS IN SUBSIDIARIES
INVESTMENTS IN SUBSIDIARIES (CONT’D) c) Advances to subsidiaries
INVESTMENTS IN SUBSIDIARIES (CONT’D)
INVESTMENTS IN SUBSIDIARIES (CONT’D) g) Material non-controlling interests (cont’d)
INVESTMENTS IN SUBSIDIARIES (CONTINUED)g) Material non-controlling interests (continued) g) Material non-controlling interests (continued) (iii) Summary statement of cash flows.
INVESTMENT IN ASSOCIATES
INVESTMENT IN ASSOCIATES (CONT’D)
OTHER INVESTMENTS
LONG TERM PREPAID EXPENSES
DUE FROM/(TO) SUBSIDIARIES
TRADE AND OTHER RECEIVABLES AND CONTRACT ASSETS
TRADE AND OTHER RECEIVABLES AND CONTRACT ASSETS (CONT’D) (a) Trade Receivables (cont’d)
TRADE AND OTHER RECEIVABLES AND CONTRACT ASSETS (CONT’D) (c) Contract assets
DEFERRED TAX LIABILITIES
DEFERRED TAX LIABILITIES (CONT’D)
INVENTORIES
BIOLOGICAL ASSETS
BIOLOGICAL ASSETS (CONT’D)
SHORT TERM INVESTMENT
CASH AND BANK BALANCES
CASH AND BANK BALANCES (CONT’D)
SHARE CAPITAL
RESERVES
DIVIDENDS
BORROWINGS
BORROWINGS (CONT’D) (a) Term loans
BORROWINGS (CONT’D)
DEFERRED INCOME
TRADE AND OTHER PAYABLES, REFUNDABLE CYLINDER DEPOSITS AND CONTRACT LIABILITIES
TRADE AND OTHER PAYABLES, REFUNDABLE CYLINDER DEPOSITS AND CONTRACT LIABILITIES (CONT’D) (b) Refundable cylinder deposits
DERIVATIVES
COMMITMENTS, CONTINGENT LIABILITIES AND MATERIAL LITIGATION (a) Capital commitments
COMMITMENTS, CONTINGENT LIABILITIES AND MATERIAL LITIGATION (CONT’D) (c) Material litigation
RELATED PARTY DISCLOSURES
RELATED PARTY DISCLOSURES (CONT’D)
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS (CONT’D)
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) (a) Credit risk
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) (b) Liquidity risk (cont’d)
Interest rate risk is the risk that the fair value or future cash flows of the Group's and the Company's financial instruments will fluctuate as a result of changes in market interest rates. Variable interest rate loans expose the Group and the Company to cash flow interest rate risk.
CAPITAL MANAGEMENT
SEGMENT INFORMATION
SEGMENT INFORMATION (CONT’D)
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES MFRS 16 Leases
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONT'D) MFRS 16 Leases (cont’d)
CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONT’D) MFRS 16 Leases (cont’d)
SIGNIFICANT EVENTS
SIGNIFICANT EVENTS (CONT’D)
INVESTMENTS IN SUBSIDIARIES
INVESTMENTS IN SUBSIDIARIES (CONT'D)
INVESTMENTS IN SUBSIDIARIES (CONT’D)
INVESTMENTS IN ASSOCIATES Details of associates are as follows
COMPARATIVE FIGURES
COMPARATIVE FIGURES (CONT’D)
NOTES TO THE FINANCIAL STATEMENTS. ii) Changes in statements of financial position Returnable cylinder deposits. During the financial year, the Group estimated and classified RM14,949,000 of refundable cylinder deposits into non-current liabilities based on the Group's long-term experience in dealing with customers of more than 5 years and currently still active.
EVENT AFTER REPORTING PERIOD
The directors of KUB MALAYSIA BERHAD state that, in their opinion, the accompanying financial statements have been prepared in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the provisions of the Companies Act 2016 in Malaysia, so that they give a true and fair view of the financial position of the Group and of the Company as of 31 December 2019 and the financial performance and cash flows of the Group and the Company for the year ended on that date. Signed and solemnly declared by the above named AHMED FAIRUZ BIN ABDUL AZIZ at PETALING JAYA in the State of SELANGOR DARUL EHSAN on 30 April 2020.
DECLARATION BY THE OFFICER
PRIMARILY RESPONSIBLE FOR THE FINANCIAL MANAGEMENT OF THE COMPANY
STATEMENT BY DIRECTORS
LIST OF PROPERTIES
AS AT 31 DECEMBER 2019
Deemed interest by virtue of his interest in JAG Capital Holdings Sdn Bhd pursuant to Section 8 of the Companies Act 2016 Deemed interest by virtue of his interest in JAG Capital Holdings Sdn Bhd pursuant to Section 8 of the Companies Act 2016.
ANALYSIS OF SHAREHOLDINGS
AS AT 30 APRIL 2020
DIRECTORY
