Approve the payment of directors' fees for the company's non-executive directors for the next financial year. The directors who retire in accordance with Article 102 of the company's articles of association and request re-election are:
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Corporate Shareholder
Voting Procedures
Remote Participation and Electronic Voting
TH VIRTuAl AGM
No Door Gifts
PlAN TATION
Bul KING
BOARD OF DIReCTORS
August 2020
INTeRIM DIVIDeND Announced
In the context of the difficult economic environment, I believe that the position taken by the Council for the FYe2020 was appropriate and responsible. During the year we strengthened certain management processes following a comprehensive review of the Group's integrity infrastructure.
Dato’ Roslan bin Hamir Group Managing Director
Our 3 sustainability values that support these objectives and strategic drivers
Key Financial Analysis
Key Financial Highlights
Revenue
Profitability
Shareholders' funds stood at RM801.77 million, representing a decrease of RM1.38 million or 0.2% compared to the previous financial year, in line with the decrease in the Group's retained earnings. Capital Expenditure (“CAPEX”) Group CAPEX of RM32.60 million (FYE2019: RM40.47 million) was incurred to meet ongoing CAPEX commitments during the year.
MANUFACTURING DIVISION
The division spent RM0.46 million on CAPEX compared to RM2.38 million last year, which is mainly limited to assets required to meet or maintain the division's operational needs. Rm0.46 million in capeX compared to Rm2.38 million last year, which is mainly limited to assets required to meet or maintain the division's operational needs.
PLANTATION DIVISION
FYE2019 2.99 FYe2020
The new IT system would give the Group headquarters greater visibility and control over estate operations. Furthermore, expanding the Group's land bank of plantations has been and remains the Group's long-standing objective.
Productivity
Rollout of the upgraded IT system across all our Malaysian estates which started in 2018 was completed during the year. While more areas are expected to reach maturity in this current financial year, we expect the division's earnings to continue to experience pressure in the near term due to the required expenditure in the development of our Malaysian estates.
2x the Oil
PTNJL remains status quo from last year as the authorities await a final outcome of the ongoing litigation regarding PTNJL's HGU before the ISPO certification process can resume. The palm oil industry remains challenging in light of geopolitical uncertainty, protectionist policies, namely and in particular the EU resolution to ban palm-related biodiesel by January 2021, as well as the impact of the protracted Covid-19 pandemic on demand for palm oil products and overall global economic growth.
Employment
The division could also potentially be faced with uncertainty about labor supply if the country's borders continue to be closed due to the pandemic for extended periods. As such, we continue to see significant opportunities to grow the division through acquisitions, as the Group's strong capital structure continues to give us the flexibility to invest for future growth.
3 million jobs
We provide good quality housing for our workers and further investment in worker housing as well as other estate infrastructure will continue in this current financial year. Nevertheless, we believe that on balance this sector will continue to benefit from the growing demand given.
Continuous Innovation
Selected employees have been sent for training to ensure we have the necessary competencies to maintain and support our MSPO certification. On this note, we are aware that we need to step up our already ongoing mechanization and automation initiatives to further reduce our dependence on manual/foreign labour, drive productivity and cost efficiency.
Palm Oil contains
The facility producing sustainable biodiesel is accredited with the MSPO supply chain certification standard and ISCC-EU compliant.
BULKING DIVISION
The rollout of the new tank farm inventory management system across our terminals which started last year is expected to be completed in the current financial year. As mentioned earlier, the negative impact of Covid-19 on the division has been modest in FYE2020 and our operations have held up well in the face of the slowdown in economic activities.
FOOD DIVISION
BestaWhite brands are produced mainly for the PNG and Solomon Islands market, while frozen tuna loin and private label canned tuna are exported to the European Union. The improvement is also attributed to an increase in the Canned Tuna (Export) segment, which generally yields a higher margin compared to other product segments.
RM5.52 million
RM0.48 million,
RM4.10 million
Besta Vegetable Cooking Oil
In achieving these goals, the group takes into account the expectations of stakeholders, its responsibility towards the environment and the communities in which it operates, in order to ensure the sustainability and long-term prosperity of the group. The report provides information on the sustainability issues deemed important to the group and how we are currently addressing them.
Zero discharge
MsPo-sccs
Requirement for third-party service providers and suppliers to declare that they comply with the Group's anti-bribery policy. Identify issues that may impact the group's value creation process as well as internal strengths and weaknesses and broader contextual trends.
WE ACKNOWL EDGE
The FFB that is harvested and sent to the mill for processing will end up as Empty Fruit Bunch ("EFB") that is used by applying directly to the field. In this regard, we are constantly looking for ways to find solutions that include monitoring elephant movements, restoring wildlife corridors and building trenches to minimize further incidences of raids and damage to the extent possible, meanwhile that at the same time.
Addressing the elephant in the room
POME discharged from the mill must not be re-introduced into the environment in its raw form. POME applied to estate The significant decline in the volumes of EFB processed by PTNJL's composting plant was due to issues related to the plant's operating license which resulted in.
FISHMEAL AND FISH OIL MARKET
During the year, water consumption at the PTNJL palm oil mill decreased by 22.85% compared to last year, mainly due to the fact that the CPKO plant did not operate for about 9 months. 86.4% of the electrical and thermal energy produced in the cogeneration plant is used to drive the oil mill.
Lights “off” For A Brighter Future
The main goal of the challenge is to inspire students to engage with information about energy efficiency and conservation in a way that is interactive, competitive and enjoyable. KFima, through its subsidiary, Fima Technology Sdn Bhd supported the school's initiatives by providing assistance in identifying and analyzing the school's current energy consumption to determine areas that consume the most energy.
OUR PEOPL E
The Group is also committed to ensuring a professional atmosphere free from discrimination and gender bias, where all workers have equal rights in the workplace. Personally, for me, I am grateful for the opportunities the Group has given me, and I wish more people could have the opportunities I had.
Wonder Women
Employees who use any machines are properly trained for this, and training programs for the use of personal protective equipment for workers who handle or are exposed to dangerous substances are carried out regularly and will continue to be an important part of the Group's operations. Emergency action plans are an important element in the Group's occupational health and safety program, as they provide employees with guidelines on the measures to be taken in the event of an emergency.
On the Job
Based on performance and contribution, employees are rewarded through raises, bonuses and/or promotions. The 34-year-old Samsul, who is currently the head of mechanical engineering at IFC, worked at PTNJL for 7 years before his transfer to IFC in 2016.
Performance Management
These formal performance and career development reviews, which take place once a year at the end of the financial year, serve as an effective communication platform between employer and employee for feedback, sharing ideas, identifying opportunities for improvement and recognizing individual training and development needs. Work-wise, there have been some challenges in mentoring and coaching the local technical staff here, but I see that as an essential part of working life anywhere.
System
I also reached the final round of a badminton tournament for Lae in an open game. The event also included a speech by a doctor on how to perform self-examination and the necessity of preventing the disease through regular screenings.
Raising Breast Cancer Awareness
The group's remuneration system comprises fixed and variable components, based on the employee's job grade. With businesses across Malaysia, Indonesia and Papua New Guinea, the Group has a local footprint in many communities.
To the Rescue
The Group also donated King Cup sardines and other food items to various mosques and non-governmental organizations for further distribution to the needy. There is a delegation of authority framework which clearly sets out those matters which are delegated to the Group Managing Director of KFima and other members of senior management.
OUR APPROACH
We believe that high standards of governance are integral to ensuring the future viability of the Group and maintaining our social license to operate. The Group Sustainability Committee guides our sustainability activities, which is chaired by a Senior Independent Non-Executive Director of Fima Corporation Berhad, thereby ensuring that we have Board-level oversight of critical sustainability issues affecting the business and that how they should be managed.
Antibribery@work
In financial year 2020, certain governance processes were strengthened following a thorough review of the Group's integrity infrastructure, for which an external consultant was engaged. IFC is also subject to the BSCI Code of Conduct, which is primarily based on the International Labor Organization conventions.
Certification and Accreditations
The PoS provides information about the characteristics of the truck contents so that they can be traced back to their origin. In addition, KONTEKS also gave attendees a first look at new products, services and technologies offered/developed by 16 of the most innovative companies in the industry.
Driving Malaysia Towards Digital Government
COMPOSITION OF THE BOARD
In addition, the composition of the Board of Directors also meets the requirement for independent directors as stipulated in the Bursa listing requirements. The findings of the annual evaluation of the independence of the Directors by the Nomination and Remuneration Committee are taken into consideration by the Board of Directors.
REMUNERATION
The committee, which has been renamed the audit and risk committee on 30 May 2019, is an important element in the group's management structure. Experience and qualifications for members of the committee are stated in the section Our board of directors in this annual report.
RISK MANAGEMENT AND INTERNAl CONTROl FRAMEWORK
The Committee has written regulations that are available under the 'Investors' section on the Company's website. All market announcements are available on the company's website as soon as possible after going to market.
CONDUCT OF GENERAl MEETINGS
- MEMBERS OF THE AUDIT AND RISK COMMITTEE The members of the Audit and Risk Committee comprise of
- TERMS OF REFERENCE
- MEETINGS
- SUMMARy OF ACTIvITIES OF THE AUDIT AND RISK COMMITTEE DURING THE FINANCIAl yEAR ENDED
- EvAlUATION OF THE AUDIT AND RISK COMMITTEE For the FYE2020, the annual assessment and evaluation on
- INTRODUCTION
- RESPONSIBIlITy
- INTERNAl CONTROl
- INTERNAl AUDIT FUNCTION
- ENTERPRISE RISK MANAGEMENT (“ERM”)
- ANTI-BRIBERy POlICy
- WHISTlE-BlOWING POlICy
- REvIEW OF THE STATEMENT By EXTERNAl AUDITORS
The audit and risk committee report, together with a statement on risk management and internal control, is submitted to the board of directors for approval prior to its inclusion in the company's annual report. The audit and risk committee supports the board in monitoring the group's risk exposures, design and operational effectiveness of the underlying risk management and internal control systems.
FINANCIAL
STATEMENTS
The Company is a public limited company incorporated and domiciled in Malaysia and listed on the main securities market of Bursa Malaysia Securities Berhad. The main place of business of the company is in apartment 4.1, level 4, block C, Plaza Damansara, no.
Significant accounting policies 1 basis of preparation
- changes in accounting policies arising from adoption of new Mfrss, amendments to Mfrss and ic interpretations
The main activities of the subsidiaries and associates are described in notes 44 and 45 respectively.
Significant accounting policies (cont’d.)
- changes in accounting policies arising from adoption of new Mfrss, amendments to Mfrss and ic interpretations (cont’d.)
- Significant accounting policies (cont'd.) 3 standards issued but not yet effective
- Summary of significant accounting policies
- Significant accounting policies (cont'd.)
- Summary of significant accounting policies (cont'd.)
- Summary of significant accounting policies (cont’d.)
- Summary of significant accounting policies (cont’d.) (c) investment in associate companies
- Summary of significant accounting policies (cont’d.) (d) revenue recognition
- Summary of significant accounting policies (cont’d.) (g) Property, plant and equipment
- Summary of significant accounting policies (cont’d.) (g) Property, plant and equipment (cont’d.)
- Summary of significant accounting policies (cont’d.) (j) inventories
- Summary of significant accounting policies (cont'd.) (k) income taxes (cont’d.)
- Summary of significant accounting policies (cont’d.) (n) leases
- Summary of significant accounting policies (cont’d.) (n) leases (cont’d.)
- Summary of significant accounting policies (cont’d.) (o) Impairment of non-financial assets
- Summary of significant accounting policies (cont’d.) (s) Impairment of financial assets (cont’d.)
- Summary of significant accounting policies (cont’d.) (u) fair value measurement (cont’d.)
- Significant accounting judgements and estimates
- revenue from contracts with customers
- cost of sales
- other income
- staff costs
- Directors' remuneration
- net impairment losses/(write back of impairment losses)
- finance costs
- Profit before tax
- income tax expense
- income tax expense (cont’d.)
- earnings per share
- Dividends
- Property, plant and equipment Group
- Property, plant and equipment (cont’d.) Group
- Property, plant and equipment (cont’d.) other assets*
- Property, plant and equipment (cont’d.) other assets* (cont’d.)
- Property, plant and equipment (cont’d.) company
Subsequent changes in the fair value of the contingent consideration deemed to be an asset or liability. Leases where the Group and the Company retain substantially all the risks and rewards of ownership of the asset are classified as operating leases.
March 2019 at cost
- Property, plant and equipment (cont’d.)
- right-of-use assets as lessee
- right-of-use assets (cont’d.) as lessee (cont’d.)
- investment properties
- investment in subsidiaries
- investment in subsidiaries (cont’d.) (iii) Summarised statement of cash flows
- investment in associates
- investment in associates (cont’d.)
- Goodwill on consolidation
- Goodwill on consolidation (cont’d.)
- inventories
- biological assets
- trade receivables
- trade receivables (cont’d.) Ageing analysis of trade receivables
- trade receivables (cont’d.) Receivables that are impaired
- other receivables
- other receivables (cont’d.)
- Due from/(to) subsidiaries
- Due from/(to) subsidiaries (cont’d.)
- short term cash investments
- cash and bank balances
- cash and bank balances (cont’d.)
- share capital
- treasury shares
- treasury shares (cont’d.)
- other reserves
- retained earnings
- lease liabilities as lessee
- finance lease obligations
- Retirement benefit obligations
- Retirement benefit obligations (cont’d.)
- Deferred tax
Notes to the Financial Statements. iii) Reconciliation of the summarized financial information presented above with the accounting value of the Group's interest in the participation. None of the Group's trade receivables that are neither overdue nor impaired were renegotiated during the financial year.
