The agent may, but need not, be a member of the company and the provision of section 149 (1) (b) of the Companies Act, 1965 does not apply to the company. He has no conflict of interest with the company and is not related to any other director or major shareholder of the company.
Analysis of Shareholdings
Analysis of Shareholdings (continued)
Profile of Directors
Profile of Directors (continued)
Chairman’s Statement
Chairman’s Statement (continued)
Lower crude palm oil (CPO) production and higher exports saw palm oil stocks drop to 1.62 million tonnes. CPO prices traded at RM2,549.50 per tonne during the first half of the year, supported by positive sentiments related to the supply tightness of vegetable oils in the global market and low domestic palm oil stocks. Consequently, during the second half of the year, bullish market sentiments supported by firmer crude oil price, together with global vegetable oils supply tight, especially that of palm oil and soybean oil supported positive price sentiments. This led to the increase of the second half of the year average CPO price to RM2,837.50 per tonne. Palm oil prices traded wider during the year, with the highest monthly average CPO price recorded in December at RM3,620.00 and the lowest reached in July at RM2,453.00. Replanting done under the SITS incentive program that took place in 2009 and 2010 also had an impact on CPO production. Source: The Malaysian Palm Oil Board). On behalf of the board, I would like to express our appreciation to the management and employees for their dedication, commitment and loyalty in achieving the results in the financial year under review.
Corporate Governance Statement
DIRECTORS The Board
Corporate Governance Statement (continued)
REMUNERATION
The committee has met once for the financial year in question, other board members and relevant members of the executive board have attended the meetings at the invitation of the chairman of the committee. In order to ensure a continued improvement of the company's results, the overall remuneration policy is aimed at attracting, retaining and motivating high-quality management.
RELATIONSHIP WITH SHAREHOLDERS AND INVESTORS
ACCOUNTABILITY AND AUDIT Financial Reporting
The Company's Corporate Social Responsibility Statement can be found on pages 37 to 43 of the Annual Report. The Company has complied with all Best Practices in the field of Corporate Governance as set out in Part 2 of the Code throughout the financial year.
Audit Committee Report
Audit Committee Report (continued)
Reviewed the annual report and the audited accounts for the company before submission to the board for processing and approval. All significant issues resulting from the external auditor's audit of the annual accounts were discussed.
Term of Reference of the Audit Committee
Term of Reference of the Audit Committee (continued)
Review with the External Auditor the scope and audit plan, including any changes to the planned scope of the audit plan; Review the appointment and performance of the External Auditor, the audit fee and any matters of resignation or dismissal before making recommendations to the Board;.
Statement Of Internal Control
Statement Of Internal Control (continued)
Processes are reviewed by internal audit, which provides a degree of assurance for the operation and effectiveness of the system of internal controls. The Board remains committed to maintaining a sound internal control system and believes that a balanced achievement of the entity's business objectives and operational efficiency can be achieved. The Board is of the opinion that there were no material losses during the financial year as a result of weaknesses in internal control.
Statement Of Directors’ Responsibility
Corporate Social Responsibility Statement
Corporate Social Responsibility Statement (continued)
This orphanage is run by the Infant Jesus Sisters and is attached to the Main Convent School in Ipoh, Perak. During the year, the Company sponsored a talk entitled "The 2008 Global Financial Crisis: Origins and Response". The residues are left to biodegrade, thereby releasing nutrients and adding valuable organic matter to the soil, reducing the use of inorganic fertilizers and also lowering carbon dioxide emissions.
Properties of the Company
72nd Annual General Meeting
Directors’ Report &
Audited Financial Statements
Directors’ Report
Directors’ Report (continued)
Buloh Akar Holdings Sdn Bhd (Ultimate Holding Company) Indirect Interest. a) Before the statements of comprehensive income and statements of financial position for the economic unit and the company were prepared, the board of directors took reasonable steps:. i) to ascertain that proper provisions had been made in connection with the write-off of losses on claims and receivables and to ascertain that there were no known debtors and that allowances for doubtful debts were not required; and. ii) to ensure that any current assets which were unlikely to realize their value as shown in the accounts in the ordinary course of business had been written down to an amount which they could be expected to realise. b) At the date of this report, the Board is not aware of any circumstances that would cause:. i) it is necessary to write off any losses on receivables or to take into account doubtful receivables with respect to the accounts of the economic entity and the Company; and. ii) the values attributed to the current assets in the financial statements of the economic unit and the company are misleading. c) At the date of this report, the Board is not aware of any circumstances that have arisen which would make compliance with the existing method of valuing the assets or liabilities of the economic entity and the company misleading or inappropriate. d) At the date of this report, the Board is not aware of any circumstances not otherwise dealt with in this report or the annual accounts of the economic entity and of the company which would render any amount stated in the annual accounts misleading. e) At the date of this report, there are no:. i) any encumbrance on the assets of the economic entity or the company, which has arisen since the end of the accounting year, which secures the obligations of any other person; or. ii) any contingent liability in relation to the economic entity or company that has arisen since the end of the financial year. f) In the opinion of the directors:. i) no quota or other obligation has been enforced or is likely to be enforced within a period of twelve months after the end of the financial year which will or may affect the ability of the economic entity or the company to meet its obligations when they fall due; and (ii) no item, transaction or event of a material and unusual nature has occurred in the interval between. Signed on behalf of the board in accordance with the board resolution of 15 March 2011.
Statement by Directors
Statutory Declaration
The company's directors are responsible for the preparation and fair presentation of these financial statements in accordance with the Financial Reporting Standards and the Companies Act 1965 of Malaysia. Our responsibility is to express an opinion on these financial statements based on our audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
Independent Auditors’ Report
In our opinion, the financial statements have been properly prepared in accordance with the Financial Reporting Standards and the Companies Act, 1965 in Malaysia to give a true and fair view of the financial position of the economic entity and the Company as at 31 December 2010 and their financial results and cash flows for the year then ended. 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 in Malaysia and for no other purpose .
Statements Of Comprehensive Income
Statements Of Financial Position
Statements Of Cash Flows
Statements Of Cash Flows (continued)
Notes To The Financial Statements
Corporate information
Financial risk management policies
Notes To The Financial Statements (continued)
Financial risk management policies (continued) (d) Credit risk
Significant accounting policies 1 Basis of preparation
- Changes in accounting policies
Significant accounting policies (continued) 2 Changes in accounting policies (continued)
Significant accounting policies (continued) 3 Standards issued but not yet effective
Significant accounting policies (continued)
- Standards issued but not yet effective (continued)
- Summary of significant accounting policies (a) Associates
- Summary of significant accounting policies (continued) (a) Associates (continued)
- Summary of significant accounting policies (continued) (c) Property, plant and equipment and depreciation
- Summary of significant accounting policies (continued) (d) Biological assets
- Summary of significant accounting policies (continued) (e) Impairment of non-financial assets (continued)
- Summary of significant accounting policies (continued) (h) Employee benefits (continued)
- Summary of significant accounting policies (continued) (i) Foreign currencies (continued)
- Summary of significant accounting policies (continued) (n) Financial assets
- Summary of significant accounting policies (continued) (n) Financial assets (continued)
- Summary of significant accounting policies (continued) (o) Impairment of financial assets
- Summary of significant accounting policies (continued) (o) Impairment of financial assets (continued)
- Summary of significant accounting policies (continued) (p) Financial liabilities (continued)
- Summary of significant accounting policies (continued) (r) Cash and cash equivalents
- Significant accounting estimates and judgements
- Significant accounting estimates and judgements (continued) (b) Key sources of estimation uncertainty (continued)
The Company's share of the net profit or loss of the participation is recognized in the profit or loss of the entity. Any gain or loss arising from changes in fair value is recognized in profit or loss. The entity and the Company have not determined any financial liability at fair value through profit or loss.
Revenue
The allocation of the value of tangible fixed assets to biological assets was calculated as the present value of cash flows from the estate's operations over the next ten years based on the directors' best estimates of future selling prices of fresh fruit bunches. Changes in the basic assumptions could affect the implemented allocation and thus change the book value of the biological assets. Management believes that the current assumptions are still valid and therefore no revision is necessary.
Interest income
The key assumptions underlying the calculation were an assumed average CPO selling price of RM2,000 and an average discount rate of 10.30% based on the Company's return on capital employed.
Dividend income
Other income
Profit before taxation
Profit before taxation (continued)
Directors’ remuneration
Taxation
Taxation (continued)
Earnings per share
Dividends
Property, plant and equipment
Property, plant and equipment (continued)
Property, plant and equipment (continued). a) The details of the independent professional assessment of tangible long-term assets are as follows: Valuation Description Valuation Basis RM If the revalued land and building had been carried at historical cost less accumulated depreciation, the net book value of each class of property, plant and equipment that would have been included in the financial statements of the entity and the Company would be was as follows: b) Included in the tangible long-term assets of the economic entity and the company are the following costs of fully depreciated assets which are still in use: c) The properties, facilities and equipment of the economic entity and the company were purchased during the year through cash payments.
Biological assets
Prepaid land lease payments
Investments in associates
Investments in associates (continued)
Other investment
Deferred taxation
Deferred taxation (continued)
Receivables
Cash and bank balances
Cash and bank balances (continued)
December 2010
The following table presents the book values, the effective interest rates ("EIR") at the reporting date and the maturities of the financial instruments of the Economic Unit and the Company that are exposed to interest rate risk (continued):
December 2009
- Payables
- Provision for retirement benefits
- Share capital
- Reserves
- Retained earnings
- Segmental information
- Capital management
- Capital management (continued)
- Supplementary information - breakdown of retained profits into realised and unrealised
The holders of common shares are entitled to dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. The change in tax legislation also provides that the balance as at 31 December 2007 is recorded in accordance with Article 39 of the Finance Act 2007. The breakdown of the retained earnings of the Economic Entity and of the Company as at 31 December 2010 into realized and unrealized earnings is presented in accordance with the guidance issued by Bursa Malaysia Securities Berhad dated 25 March 2010 and prepared in accordance with Guidance on Special Matter No.
ANNUAL REPORT 2010
RUBBER ESTATES, BERHAD (820-V)
INCORPORATED IN MALAYSIA
